PROFITS FROM FAN-TAN.

New Zealand Herald, Volume LXIV, Issue 19762, 8 October 1927, Page 14

PROFITS FROM FAN-TAN.

CREDITOR'S CLAIM ALLOWED. HONESTY OF THE CHINESE. AN ADMINISTRATOR'S DUTY. The opinion that fan-tan, although made illegal by statute, is no more inherently immoral than many lotteries, and sweeps in which great numbers of the community participate with impunity, was expressed by Mr. Justice Stringer in delivering a reserved judgment in the Supreme Court yesterday. His Honor's remarks referred to an action heard last Tuesday in which Low King, fruiterer, Wellington (Mr. long), a creditor in the estate of the late George Ghee, merchant;, Auckland, claimed from the Public Trustee (Mr. A. H. Johnstone), as administrator of the estate, £539 14s 6d, moneys allegedly held by deceased in trust for the creditor. Evidence disclosed that deceased and the creditor had put £25 and £SO respectively into a syndicate for the conduct of fan tan, an illegal game, it being agreed that they should share profits in those proportions. Deceased acted as banker, and at the time of his death Low King was entitled to the amount claimed as his share of the profits. On behalf of th<* Pubilc Trustee, who had rejected the creditor's proof of debt, it was contended the claim could riot be established except by proving an illegal transaction to which King was a party, notwithstanding the admission in deceased's books that the £539 was due to King. The Judge held that if the question had to be determined as in an action between the creditor and the deceased, this ob jection would be fatal, as to permit such action would be contrary to public policy as stated by Lord Mansfield more than a century ago—"No Court will lend its aid to a man who founds his cause of action upon an immoral or illegal act. . . But these principles were not applicable to this case, where an estate was being ad ministered under the laws of bankruptcy and where the administrator was an officer of the Court. His Honor quoted legal authorities in support of his contention, saying appellant was entitled to relief under the rule as to administration of estates in bankruptcy. Among the views expressed ui previous rulings were: "The Court must consider what in point of honesty the trustee ought to do in respect to the facts of the case. . . the Court ought to be honest. The Court will direct its officer to act as any high-minded man would act—namely, not to take advantage of a mistake of law. ... if to do so would be inconsistent with natural justice and that which an honest man would do." It was well known that Chinese business men were, as a rule, scrupulously honest and exact in their monetary transactions, and there was no reason to suppose thai if the deceased had lived, he would have denied the right of the creditor to his share of the profits, or would, if sued, have set up the defence that the action was barred by the fact that such profits resulted from the conduct of a fan-tan game. ihe Judge ordered the administrator to admit tho creditor's claim to proof ratably with other creditors.