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“...SUPREME COURT & CONSULAR
And Law Reporter for the Supreme & Provincial Courts of China & Japan.
V„L. II SHANGHAI, SATURDAY, 5th ©CTOBiCR, 1867. . ho. 40
CONTENTS.
(. E A DIN G Ajmc LES. P
FranduIenU Preferences....................125
The Inspectorate of Customs ..............123
Cases in II. B.’M.’s Supreme Court.
In Admiralty.—In re the “ Malacca”........127
A. Davis & Co. v. Master of “ Invincible”.132
In Bankruptcy.—In re Maitland, Bush & Co.... 132
Summary Case3 ..............................132
Police Cases .............................. 132
Case in Bremen Consulate, Shanghai.
In re the “ Siam”.......................... 133
Page
Case in IT. B. M.’s Provincial Court, Hankow.
In Bankruptcy'. In re Mackellar & Co........131
Case in H. B. M.’s Provincial Court, Chinkiang.
In Bankruptcy. In re Hay & Co..........14}
Mews of the Week,............................ 141
Commercial Summary,..........................142
Riitpp.g,....................................14 2
Quotations &c., &c.........”
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“...SUPREME COURT & CONSULAR GAZETTE.
H. B. M ’s Supreme Court.
Prussian Consulate General
IN HER BRITANNIC MAJESTY’S SUPREME
COURT FOR CHINA & JAPAN.
IN THE COURT OF BANKRUPTCY.
In the. matter of Robert Kelly Maitland and Henry
Edward Bush, lately trading In co-partnership at
NeWchwang, in the empire of China, wider the style
or.firm of Maitland, Bush and Company, bank-
rupts,
WHEREAS at a public sitting of the Court held
on the 30 Vi day of September, 1867, the Court
granted an order of discharge to each of the said bank-
rupts.
Notice is hereby given, that the respective orders of
discharge will be delivered to the bankrupts on the l.sg
day of November, 1867, unless in the meantime an
appeal be duly entered against the judgment of the said
Court.
IN HER BRITANNIC MAJESTY’S SUPREME
COURT FOR CHINA AND JAPAN.
IN THE COURT OF VICE ADMIRALTY.
In the matter of a barque found derelict.
Shanghai, KM September, 1867.
WHEREAS a cause of salvage has been instituted
in this Court on behalf of Thomas...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE.
125
7/;Ts* quested that only such communications as relate to
Editorial matters be addressed to the Editor, and that they
sent not later than Friday.
oq Advertisements will be received till 10 a.m. on Saturday.
No communications can be noticed unless accompanied by
the name of the writer.
j§tt$reme (loud anb Consular tedte
Shanghai, October 5th, 1867.
The frequency of Bankruptcies in Shanghai and
Hongkong induces us to say a few words upon
a branch of bankruptcy law of importance alike
to the bankrupt and the creditors, and which
recent cases lead us to believe is little understood
or appreciated by those most interested in the
matter. We refer to the subject of “ fraudulent
preferences.” The object of the Bankruptcy Acts is
clearly to procure the equal distribution of the
insolvent's estate amongst his creditors, and
hence the introduction into the Bankruptcy Act
of 1861 of a section rendering it amongst other
things a misdemeanor “ if...”
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“...126
SUPREME COURT & CONSULAR GAZETTE.
October 5th 1867
the preferred creditors in each particular case,
and collect from surrounding circumstances,
the intent. By a comparatively late decision, it
was held in substance that it was not necessary
that a technical bankruptcy should be contem-
plated. It will be apparent therefore that while
the law aids the diligent creditor; in cases of
fraud it punish- s the bankrupt, and places the
general body of creditors in the same position, as
if the act had never been committed.
However backward the ('hinese empire may be
in civilization, however defective our knowledge
of its agricultural, manufacturing, and mineral
resources, when compared with the ample and
accurate information regarding the productive
powers and capabilities of western countries, we
have in the Imperial Maritime Customs, evid-
ence of how much may be accomplished by the
fusion of Western influence into the Chinese
administration. When we contrast the highly
organized Customs service...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE,
127
tion. of Foreigners, who, representing the three
Treaty powers of England, France and the Unit-
ed States, were nominated by the Consular An
thorities; Mr. T. F. Wade, now Secretary of the
British Legation, being one of the three original
Commissioners; with Mr. EdanandMr. Smith as
his colleagues. Under the management of these
three gentlemen, the Custom House business was
conducted in an Office in the now Nankin Road,
not far from the Maloo; and from this beginning,
has been developed the useful and satisfactory
system at presen t in force.
It is noticeable that the Inspectorate at first
partook rather of a foreign than a native ele-
ment; but by degrees it became more and more
Chinese in its nature, while at the same time the
native Officials began to appreciate the advant-
age of foreign honest y; and to reap the benefit in
a largely increased revenue.
The negotiators of the Treaty of Tientsin re-
ceived with much favour aproposal...”
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“...128
SUPREME COURT & CONSULAR GAZETTE.
October 5th 1867
we should have gone into them. Channel was too nar-
row to euable us to turn the ship round at one sweep.
The Malacca did not glance off the moment the collis-
ion took place. I will swear her bow was in our ship
more than half a minute, lb was a pretty good heavy
shock but did not knock me off my legs We brought
up because the junks were so tlrck. They were Foo-
chow wood junks with loads of wood on both sides. It
was not is I think more than half flood when the col-
lision took place. The distance from the time we ported
to when we brought up was 600 or 700 ft.
lie-examined.—The junks were not so crowded as
represented on the chart. The collision took place
about half past nine.
James Neill.—lam a Pilot, about 6 years on river, and
was piloting tne Tientsin at time of loss. We were under
weigh. Prior to getting underweigh anchored a little
below Woosung Creek, about half past 8 a.m. Got
underweigh as soon as could furl the sails and...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE.
129
The Tientsin commenced to turn in a circle at the
time of the collision.
Oross examined.—The Malacca was about mid-
channel. The vessels were consequently about 400 or
500 yards apart. The Malacca when 150 yards off
starboarded her helm. T heard some one on the
MaZacca call out, “ Why don’t you go astern the
steamer.” They called out, “Let go the anchor.” It
could not be a minute between the Malacca's calling
out and the collision. The Titan was continually
blowing her whistle. The Malacca only blew once,
faintly. The JfaZacca turned her stern as soon as the
collision took place. I do not know when the junks
came. The width of the channel where the collision
took place was about 200 yards.
Chas. D. Braysher.—I am assistant in charge, on
the books, virtually the Harbor master at Woosung.
I did not see the collision. I was informed by the
signalman of the accident having occurred. I looked
through the glass and saw the Tientsin in the...”
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“...130
SUPREME COURT & CONSULAR GAZETTE.
October 5th 1867.
but I do not know lier age. After the collision the Ma-
lacca and Tientsin were alongs’de for a minute. Neither
went among the junks.
Mr. Myburgh in opening the case for the defend-
ant, observed, the defence was by no means so difficult
to conceive as his learned friend had represented. The
Rule to which he had specially alluded had been re-
pealed by a recent Act, and though this might not be
universally known, the case must of course be decided
according to the law as it stands. After review-
ing evidence on the part of the Plaintiff the learned
gentleman contended that the Malacca could only act
as she had done when she saw the Tientsin port her
helm ; and he characterised the attempt at turning
where she did as most hazardous and unwarrantable.
If the Court held either that the Tientsin was guilty
of non observance of rule in porting her helm, or that
she was not justified in attempting to turn, under any
circumstances in so narrow...”
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“...October 5th 1867-
SUPREME COURT & CONSULAR GAZETTE.
131
attempting such a manoeuvre. I should not turn an
800 ton vessel in the channel.
D. Martin, Pilot.—I was in charge of the Malacca
j!f the 28th July. I observed the Tientsin steaming
down the channel. She was on the south side when I
first observed her and she crossed over to the North.
We were about mid channel The Tientsin ported his
helm about two hundred yards from us as I judged by
my eye. I asked the Captain to blow the whistle and
he made the remark we had better stop her and go as-
tern and I said “All right Sir, do so.” He also suggest-
ed that the helm should be put midships. The Tientsin
was about three points on our starboard bow. If she
had not ported her helm and we had both kept our
courses, there would have been no collision. The
width of the channel was about 300 ft. I did not im-
agine before she ported that the Tientsin was going to
turn ahead of us. When I blew the whistle I should
have thought she would have stopped...”
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“...
C. VV. Goodwin, W
Deputy Chief Judge
H. B. M. SUPREME COURT.
October 3rd, 1867.
Before C. W, Goodwin Esq.
Alex. Davis & Co., v. C. Leeching, Master
of the ship Invincible
Mr. A Provand, partner in A. Davis & Co., appear-
ed in person.
Mr. Lowe, Clerk to Gilman & Co., appeared by
authority, for the Defendant.
This was a claim for Tls. 500, damages in conse-
quence of breakage done to a slate for a Billiard Table
on board the above vessel. There was no dispute as
to the facts, the only question at issue being that of
damage. Defendant admitted the market value of the
Table to be Tls. 500, audit appeared that storage of
the whole five packages constituting the table would
amount to Tls. 3| to Tls 4 per mensem ; that a new
slate would cost between Tls. 30 to Tls. 40, and that
it would take 8 months to get such new slate out from
England.
Upon these facts, His Lordship gave a verdict for
the Plaintiff for Tls. 100 and costs.
II. B. M. SUPREME COURT, IN BANKRUPTCY.
Sept 30th, 1867.
Before C...”
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“...October 5 th 1867.
SUPREME COURT & CONSULAR GAZETTE.
133
oflpn air for two days without finding a purchaser. A
foreigner and a Chinaman had. come together and taken
them away.
It appeared that a case with reference to this matter
had been before the Mixed Court, where proceedings
vzere instituted against one Wu; but it was proved
that one Douglas there stated that the goods had been
taken by Mr. Milne’s order.
Defendant’s Compradorfe was called and proved that
notice was given to the Complainant’s predecessor as
stall keeper on the spot in question that if he did not
move the goods he would be charged $9 per month rent.
This man had since disappeared, and the witness be-
lieved that the present complainant was wife of the
person and that the stall was the same. Complainant
being examined, denied this relationship, or that she
had ever learnt either from him or the Defendant’s
Agent that she would be held liable for rent. She
thought the road was free to her to lay out her goods
for sale...”
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“...134
SUPREME COURT &
CONSULAR GAZETTE.
October 5th 1867.
(From the Hankow Times.)
IN HER RIBTANNIC MAJESTY’S PROVINCIAL
court at hankow.
In re. Mackellar & Co., Bankrupts.
Second Meeting of Creditors.
Before John Gibson, Esquire.
September 9th, 1867.
(Continued.)
Mr. Maxwell put in Power of Attorney from Blain,
Tate & Co., claiming taels 27,261.31; also a further
separate sum of Tls. 7,741.49. There are shipments of
Tea this season on which the probable losses will be
about taels 10,000. Messrs. Blain, Tate & Co. wish the
accounts to remain open until received from London.
Mr. Myburgh suggested that the same course be fol-
lowed here in this case as in the Supreme Court—viz.,
that the accounts be received, subject to alteration
hereafter.
Drysdale, Ringer & Co. put in a claim on behalf of
estate of J. K. Holds worth for taels 1,759.98.
M. P. Evans claimed for Reid & Co. taels 16,434.72.
J. Henderson claimed for China Fire Insurance Co.
taels 328.59.
C. C. Rainbow claimed for Thorne Bros...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE.
135
trv to
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“...136
SUPREME COURT & CONSULAR GAZETTE.
October 5th 1867
I am very sorry that our Land speculations, made sever-
al years age, should have proved so disastrous.
Yours very sincerely,
(signed) W. G. GORDON.
To John S. Mackintosh, Esq., Shanghai.
The last contract for Tea I entered into was on 24th
June. Some of these were the 12 chops which I did
not get 1 stopped payment on 28th I did mention
to Mr. Medhurst on 25tli the probability of my being
obliged to come into this Court After the 20th the
value of the Tea purchased by me and not paid for
was taels 20,000, and delivered I cannot swear that
I did not pay away a portion of the advances received
from the Chartered Bank and Mercantile Bank on Teas
in June in payment of loans on goods hppothecated to
the banks sold by me previously, and of which I had
applied the proceeds to some other purpose ; neither
can 1 swear that I did not. As we have no special ac-
counts, all payments and receipts have been made
through the bank 50 bales Long Ells...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE.
137
At Or.
Capital Account,........... Tls. 30,000
J. Mackellar, .................. 27,300
W. G. Gordon,................... 14,900
Property, valued, .............. 20,000 Tls. 92,200
At Dr.
Bad Debts,................. Tls. 41,605
J. Mackellar,..................... 8,976
W. G. Gordon,..................... 8,976
Commercial Bk. Loan,............ 50,000
Mrs. Gingel Loan,................*30,000
-------Tls. 139,557
Thus showing a deficit of Tls. 57,357.
The books show that at that time they are interest-
ed in Tea shipments. I believe the whole or greater
part of these shipments turned out losing ones. 1 be-
lieve their commissions would pay expenses from 30th
June to May, but not cover the losses of which they
had advices. They were hopelessly insolvent on 1st
May, to best of my knowledge. I did not say to Gor-
don that I would not appear in Court. I might have
said to him that I would not cross examine him, be-
cause I objected to do it myself—not...”
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“...138
SUPREME COURT & CONSULAR GAZETTE.
Octoler 5tk 1867.
powers of the Court. He laid great stress on the fact
that the bankrupt had admitted in the month of April
his inability to pay the instalment due to the Com-
mercial Bank, and that he had written to the liquidator
of the bank on the 19tli June, stating that he would
have to go through the Court unless he obtained an
absolute release From April to May the state of his
firm’s affairs became daily more precarious; and not-
withstanding unfavourable advices from Shanghai, and
although he has not a cash to his name, he purchases
and ships tea to the extent of Tls. 600,000. After the
13th of June, when he had written to say that he must
pass through the Court—atter the ‘22nd, when he had
received a reply giving him to understand that he
would be pressed by the liquidator for the bank—he
still continued to obtain from the Teamen their goods.
If there be any doubt as to his conduct previously to
these dates, there can be no reasonable doubt...”
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“...October 5th 1867.
SUPREME COURT & CONSULAR GAZETTE.
139
the Assigness, who have during the past ten years, to
their knowledge, struggled through the one year more
on fictitious capital, and with success in some cases ?
Did they not know that, had their purchases resulted
badly, they would have been placed in a similar posi-
tion to ours ? and still, in their desire to avoid bank-
ruptcy, the risk was run, and some of the houses are
still in existence.
Mr. Evans, who, I believe, admits that he is no
book-keeper, although totally unconnected with our
affairs, has taken upon himself, when on oath, to
estimate our assets in June 1866, although debts, now
doubtful were not so then ; while Mr. Crawford, a
thorough accountant, in his evidence, declared his in-
ability to make any such estimate.
The Land mania, prevailing not only at Hankow,
but at all ports in China during 1861-3, must be known
to all residents during those years, as also the ideas
formed as the almost certain profit likely to...”
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“...140
SUPREME COURT & CONSULAR GAZETTE
October 5th 1867.
me to him, more particularly as I had received no
official communication from the representatives of the
bank, and have every reason to believe that the tenor
of the Liquidator’s instructions to their agent here was
of a very different nature to that conveyed to myself,
1 assert that it would not have benefited the bank
in the smallest degree to force us into this Court for a
sum of taels 10,000, considering that their securities
could not be affected by any action taken by other
parties.
1 distinctly affirm that our stoppage was not directly
occasioned by the action of Mr. Cameron, but by the
return of our dishonored drafts from Shanghai, con-
sequent upon the reports before referred to ; which
drafts were not received until immediately prior to our
stoppage.
Air. Myburgh remarked upon the nature of my assets.
I believe that a book-keeper has to include doubtful as
well as good debts in the assets. As to the debtors
being dead, a debt...”
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“...October 5th 186d.
SUPREME COURT & CONSULAR G AZETTE.
141
lowance on behalf of Smith, Kennedy & Co.’s estate, but
under the circumstances as no allowance could be
granted without his consent, and as the amount pro-
posed was moderate, he would agree to it provisionally,
it being distinctly understood that his consent would be
void,it Mr. Mowat declined to confirm it on behalf of
the estate he represented. It was also resolved on Mr.
Canny’s proposition, that this allowance should not
be payable till the Creditors’ Assignee had sufficient
funds in hand to cover Court fees, claims under £ 10,
and some other expenses,
Mr Bean then handed in a claim, as one of the
Creditors’ Assignees of Mr. F, L. Pater’s estate, for
$37.53, for half rental of Bungalow, occupied by Mr,
Hay from 1st June to date. After some discussion,
this was admitted.
Some conversation having taken place as to the
nature of the assets, the meeting separated, H, M.’s
Consul stating that due notice would be given of the
day...”
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“...142
SUPREME COURT & CONSULAR GAZETTE.
October 5lh 1867
give the report elsewhere. Stress is laid upon the
fact that a sum Tls. 99,000 “has been apparently
misappropriated’'; a fact not alluded to in the judg-
ment, and which it was the object of the opposing
creditors to shew.
There has not for some time been any further in-
intelligence from the North. Li’s whereabouts is
still a matter of uncertainty,
COMMERCIAL.
Shanghai, Friday Evening, October 4th, 1867.
Imports :—Our Shirting Market has been in a quiet
state throughout the week without much variation
in prices, the value of 8| lb. having ruled at Tls. 2.55
a 2.60- White Shirtings have been in very small demand
at improved rates for low makes. English and Am-
erican Drills have been wanted at Tls. 4 a 4.40 and
T-Cloths at Tls- 2.10 a 2.35 for 7 lbs. Fancy Cottons
are on limited demand as will as all kinds of Woollens.
Tea: Black, transactions of the past week have been
insignificant in extent, owing, perhaps to the nature of
the Home...”
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