*8
NOW IS THE TIME did
TO TEST THE
THE CHINA MAIL.
at the time and said he would go down Did it not strike you as peculiar Commerce, wore purposely written by and guaranten Bowe's bill, which he that a genuine American company you to bluff these prople and keep should have its policien rinted in them off the track 7. The letters are Witness understood that Bowe was Shanghai ---No. The Colonia! Under fall of inaccuracy and untruth, going to give the agencies to Wallace writers bad their policies printed here Witness-I do not agree. Bowe knew witness was running the as well. In connection with that; You told Det. Sgt. Yorke that you Bowe was arrested for wern agent for the companies, and SOOTHING EFFECT import office, and had no time to company
worry about insurance.
cmbazzlement. As far as I know the that you had received the agenoise Did you receive any money under company is still running.
from a man called Smithson. the compradore agreement On When Wallace took over the Withen-I aid so. May 16 or 18 1 received à chaque for agencies of these two companies, you
in the idea, I bad nothing else to do with them.
or
MENTHOLATUM Ths. 500 and that was handed over to dropped out. is that the idea t-That acourate?
WHEN APPLIED
אם
INSECT BITES
MENTHOLATUM TRY
SHANGHAI INSURANCE
FRAUD TRIAL.
VERDICT AND SENTENCE.
IT!!
after that Spence started bossing around, and it looked as if he were boss. Witness never got any salary Det.-Sgt. Douglas was the last witness for the prosecution. He gave evidence of arrest. The warrant for Chalmers was executed on July 14 at
Wallaco.
*}
NO BANKING ACCOUNTS.
Was Det. Sgt. Yorke's evidenco
Witnes-Porfectly accur te.
Did you get tho money -No I
COUNSEL'S ADDRESSES. did not. Wallace had the money and
This concluded the evidence for the was taking all responsibility.
Mr. Mossop, continued his cross-defence, and Mr. Mossop then Questioned with regard to the examination when the hearing was adressed the jury. The evidence agreement Wallace was asked to sign,ressmed in the afternoo3.
had beyond drubt established the witness said: Wallace asked me if he Did these insurance companica ever fact that these two companies did not could sign policies, and I said I did have a banking account, Counsel exist Counsel observed, and he asked not know whether he could or not naked.
the jury to say that, on the known it was up to bim, I knew I had no
facts, Chalmers and Spence must power of attorney, so I could not sign Did the Celestial Mercantile Co. have known this. Conneol suggested any. It bo intended to sign policies, ever have a banking account? I wanted something to show freeirg me from all reaponsibility. Wallace sent several tolegrams to "Chapman" at Chofoo.
Witness-No.
Witness-It never did.
that Spenco interviewed and wrote to the American authorities (who) Did to Yorkshire Trading Co. ever addressed Wallace) in the hops that: have a banking account }
they would take no further interest in Witness-It never did.
the matter upon discovering that it Did G. Y. Chalmers ever have a concerned a British subject.
Speaking on behalf of Chalmers, Mr. Priestwood anid he was not going. to pretend that these companies were genuine at all. It was
for the
Questioned as to advertisementa published in the Chinesa press, wit-banking account? news said he had nothing whatever to do with them.
Witness-Ho bad once. When this letter of inquiry arrived from the American Consulate, didn't the genuineness of these companies?
With es-At that time I was not
Chalmers. in connection with alleged 8 Kiangse Road, at the office of the asking for a further Tls, 1.000 was in you think it about time to inquire into prossestion to prove that; and more
Wallace's letter to the compradora the nature of an ultimatum, either to pay up or get out. If be would not
The trial of A. M. Spence and O. Y. bogus insurance company frauds was Yorkshire Trading Co. He said concluded at H. M. Supreme Court, Alter Spence was arrested yesterday Shanghai, on August 25, before higIexpected this.". The office of the pay, Wallace was going to put in his interested in the companies, and I left in the prosecution's own story, the
The
Honour Judge Grain and a jury. secused gave evidence in the witness box, Chalmers going into the history in some detail, ond both denied being directly concerned in the insurance business, and said they bad to reason to believe the two companice were other than genuine. His Lordship concluded his summing up on the stroke of five and the jury tired. They returned in 10 minutes with a verdict of guilty against both accused. Chalmers was then charged that on April 15, 1919, he was convicted on two charges of estafa (embezzlement) by the Court of Firat instance in Manila, and sertenced to serve 18 months' imprisonment and pay as indemnity of Pesos 65,000.
He pleaded guilty,
His Lordship, after commenting upon the serious character of the ollence and saying that he regarded Chalmers as the leading miod in the conspiracy, sentenced Chalmers to 18 months' imprisonment, and Spenco to 12 months' with hard labour.
THE HANKOW AGENCY.
ment. He did not disives businese
a
Yorkshire Trading Co., was next to that of the Celestial Mercantile Co. The same evening, Chalmers wrote out and signed a statement.
EVIDENCE DY CHALMERS.
The case for the Crown having been concluded, Mr. Primstwood at once put Chalmers into the witness box. Accused stated that he was employed by Bowe from November, 1921, nutil February 1922, in the business of Frank R. Bowe & Co., Inc.
Was it a substantial company 7- It was in good credit at the A-ia Bank, and bad very good import and export agencies; also the agency of
witness
own compradore. Witness did cat type the lotter. It was done on Wallace's machine.
Why did you mark the letter "approved"? I thought it best to give the compradors a chance of retaining his position, as I had been more or less responsible for getting him there.
NO PART IN INSURANCE WORK.
Did you take any part in the work of the insurance companies? None at all.
None
Wallace showed witness the letter from the American Consulato, and witress told him the best thing he could do would be to go and see the Consul-General straight away.
iban that, they must prove that a cused knew they were not genuins. charge against Chalmers of having obtained moley at Hankow by false out pretences must fail.
the whole thing to Wallace. It was their business, not mine.
were
It was up to you to find
companics whether these genuine or not, and not wait until the American authorities told you.
I
Wallace gave bis ovidence, said counsel, as though he were repeating! a well-learned lesson, and it waa vindictive evidence, He was con- Icerned only in clearing himself. The evidence disclosed a lot of loos business methods, but if this was a orime, accused were not charged with it. The jury might say the state of affairs shown to exist was not business, He did not for a moment ask them to' say that it was; but it was one thing to criticize business methods and a vastly different thing to any the accused carried on a conspiracy.
Witncas-To tell you the truth, did not pay much attention to it. had my own business to attend to.
Are you still of the opinion that these two companies are genuine!
Witness-Well, I have beard nothing.... So far as I know there
nobody who said they were not. You have listened to the evidence. Are you still not convinced?
Witnes--I seem to have beard the name "World's Insurance" before. still think there may ban" World's Insurance." I seem to think there is
is
I
one.
His Lordship-Why? Witnere I seem to have heard the
name.
His Lordabip-We have all beard the name during the past few days.
His Lordship then summed up, beginning by saying that the non- existence of the two companies was uncontradicted and undisputed. Did Chalmers and Spence know they had never existed? If the accused be lieved, and had reason to believe that the companies were bona fide, then the jury must find them not guilty.
Were you consulted about risks, policies, or anything at all? Nothing at all. It was no good consulting me the Colonial Marine Underwriters, about risks. I knew nothing about Montreal. He expected to get the them. agencies for several other companies,
Did you sign any policies Bowe's company went into liquide-at all." tion early in February, and shortly afterwards witness had a turn in hos pital. Bowe visited him there on Reveral occasion and, on leaving the hospital, invited him to share his room at Frederick's Hotel. Witness did so remaining until Bowe
With regard to the outport journeys,
SPENCE'S STORY. Spence then gave evidence on bis moved to No. 1 Peitaibo Lane, in witness said he went to Hangakow be
His Lordship commented upon the cause the trip was made on a Sunday, own half. As stated that whilst misfortune of the compradore, who March. Damiano de la Vega, a Spaniard, of
It was generally understood that and be spent the day on the lake. resident at Peitaiko Lane be over-paid out $5,500, without getting a Tientsin Road, Hankow, who
He did not go to Ningpo. He went to heard conversations relating to insur- penn back. described himself as a stenographer, witness would open a new com
After a short deliberation the jury identified Chalmers as being a gentle.pany for Bowe, and do insur Nauking bacause the occasion was nance, but took on interest whatever
Chinese festival. He also went to in the proceedings. On one occasion returned a verdict of guilty idea whom he met at Haskow. Hence business, and wine and Hankow, with the intention of looking witness was the only for igner, there against both defendants. met him in Jane lust, at a Chinese ed to open an office at 8 Kiang.
se Road. There were converrations up import and export busiuers. Wal- when the prospective compradore Asked if he had anything to say in dinner, and later at the Bankow about insurance and they were joined lace did the insurance work and ap called and witness handed a draft mitigation of sentence, Mr. Priest- Hotel. Witness me him by appoint in by Chaer, who was supposed do the proached de Vega about taking up the agreement to him; and when the wood said he could only urge that insurance business. Advertisements agency, witness having nothing to do agreement was signed a low days later, Chalmers had had many misfortunes with Chalmere. Wallace made the for a compradore were placed in the with the negotiations. He did tell de he was called downstaira to witness it and in face of certain circumstances appointment, and it was he who
Chinese newspapers by Bowe and Vega that offices had been opened in He took no part in the discussion. found it difficult to obtain employ offered witcess the agencies of the wo
Bowe also Shanghai. He did type out the agreeThe first time he had any dealings ment. insurance companies, He asked for were paid for by him.
BLUR ON BRITISH REFUTATION, deposit of Tls. 1,000 and after two made up the replies which were sup.ment because it had to be signed at with these insurance companies was
His Lordship, in passing sentence, daya' consideration witoris agreed, posed to be signed by base, who was coon and Wallace's clerk had not about Jane 9, when Wallace showed firat corselling a man named Mack. going to be the inaurauze a ent. turned up.
Had you any idea or su picion General. Wallace asked for advice, have been found guilty after a said: Chalmers and Spence. you Witness was told that the companies were gonuire and that each had agency, and this was included in up to tht time that there companies and witness Foggested he should inter fall and careful trial in which every-;
Chase was were not genuino companies?-Nous view the Consul General. Bowe's advertisement. capital of Tls. 1,000,000. Chalmers
also drafted out a reply on the thing possible has been said on your Cross-examined by Mr. Mos back of the letter and was present throughout the interview, supposed to interview applicante for at all.
banded behalf, and I am bound to BAY the post of insurance compradorú, but
It
I agree entirely with the jury. On but Wallace did the taiking. The when he did not turn up at Peitaihe witness said he had conducted the it to Wallace.
the evidence before them I do not two of them called at witness's Louse Lane, witness was there. Chase and North China Trading Co., and the inferred from Wallace's manner eee how they could base come to any on July 4, and an agreement was Bewe were unable to agree on the Northern Steamship Co.
that there was some slight difficulty drawn up and signed by
When you chartered the st. about his int viewing the Consul other verdict. Your offence it a very
aerious one, for many reasons, witness and two relatives and money question and Chase dropped
out of the businces, after baving gone "Ralph Moller" at $10,000 a month, General and witures offered to assist,
one thing, it is an offence which casta by Wallace and Chalmers, Wallace said the agreement had so far as to get offices is the N.K.K. what capital bad you?-None, per him. He saw Mr. Perkins. i: ferming
a alur ca that reputation for honesty him that he called on behalf of Wal-which the British have obtained lace and also saw the Convul-General, throughout China. It is serious bo- been typed out by Chalmers. On July building. Witness first heard the Bolly. 5, Wallace and Chalmers called again names of the two companies from
who referred him to the District At- torney. by appointment and witness handed
cause you have defrauded poor people, Witness undertook to pro-and further because indirectly it over $1,430 receiving a receipt sign-
duce the insurance documents called: Mr. Fricstwood--What did you up- ed by Wallace. Wallace told witness that he was in charge of the insurance derstand exactly about them? business and Chalmers sai he was in Witness-I understood they were charge of the import and export degenuine companies; otherwise partment of the Celestial Trading Co. would not have had anything to do Insurance policies, stationery sad with them. stamps were given to witness but he did na budiness because no power of *** attorney was given to him. He was told it would be sent to him from Shang- bai. Te agreement stipulated that the firm should pay office runt, but witness received none.
His Lor 'ship Did you ever get any of your money back again?
Witness-No.
Chase already had a life insurance
Bowe.
BELIEF IN COMPANIES.
Counsel-What was Bowe's idea Witness-He was prepared to give away the agencies for a consideration. Counsel What were you going to pav Bone! Tis. 500 for the insur anca agencies and Tis. 500 for the import and export.
Ware you aware that these com- panies had not been incorporated?
At the end of six months you owed
$20,000 odd t
Witness-It smashed.
Your compradore had guaranteed considerable amount, which he had to pay out?-He had. But I don't think I can be held responsible for that.
him a letter from the U.S. Consul.
Witness
Феде to be
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Mr Priestwood-Is my friend en titled to put these questions ?
His Lordship-Are they material? for, this king that Wallace who know injures firms established in China by lowering the foreigners reputation Mr. Mossop-I am leading up to all about the insurance business for honesty. You, Chalmers, bavo this, that this man is a man of straw. would have them in his possession. heen previously convicted for That is only a civil debt. I make no When Wallace went to lankow, be suggestion of improper conduct. You informed the staff that witness weald embalement and frand. It is trae,
that part of your Fentence will admit, counrel continued, that sign p.p. during his absence, and ne the North China Trading Co. faile cordingly, he attended the office for
remitted upon condition that you, financially?
half an hour in the morning and half went away to a certain country and did not Zetura. You were an boar in the afternoon to sign poli
go to that ice. Witness had nothing to do with given money to
of doing country, but instead the foot.ses or insurance details.
To you came to Shanghai and ENOWING NOTHING OF INSURANCE.
STYLISH & started again on a fraudulent career. }| Crosa examined by Mr. Messop. The maximum sentence I have power Spence said that he had an office at to give you is two years with hard When you started theso business 8 Kiangse Road in connection with Witness-It is absolutely untrue to discussions at Peitaito Lane in April a Chinese pictorial magazine which labour, but I hesitate to pass that. Ic Answer to Mr. Picst suggest that. Witness added that, what was your financial standing-ke was starting. In his interview Although I ought to give you a long wood, witness said he understood gatil Bowe went into the witness box Very small.
with the District Attorney, he did sentence, than that you had be fore, nevertheless I aball sentence you Wallace to be the agent for the two he had never heard of the suggestion The same with Spence?--You must not mean to convey the impression again to 18 months' imprisonment companies. Chalmers counted out the that no business abou'd be done until as Spence
that be was agent or representative with hard labour. As for you, Spence, msney and handed it over to Wallace, Bows cabled from America. The firstYou know Bowe was arrested in of these companies. Knowing your case is different. Chalmers, I and in the alternoon the latter obeque for Tla. 250 paid by the.com connection with the Colonial Marine thing at all about insurance, wit think, was the leading mind in this sunounced that he had rumilted the pradore was banded at once to Bows. Underwriters of Montreal 1-Yes. Iness was not even aware that a conspiracy and I shall also take into whole amount to Shanghai.
Do you know anything about in was in charge when he was arrested, agent required a power of attorney account the fact that you have got a eurance business? - Very littlo. Witness added that he certainly He expected that the papers required! cloan record. I must pass auch sent- Sam Sekiller, Wallace's brother-infow these companies should be ratif
What was your idea, then, as to thought the German-American Co. by the American Anthoritice would ence, however, as will not only be a and the World's Underwriters were ho in the office, taking it that every-punishment but a deterrent to others, My idea was to appoint a manager genuine companies. He thought they thing was in order.
and you will therefore go to jail for to run the companies,
must already have been incorporated, In a letter you drafted to be 12 months with hard labour, - A PAYMENT OF TLS: 500...
ince he did not see how a man like sout to the American Chamber of
Commerce, you undertook to sup ply information such as the names of the stockholders in these two companies, particulars of incor- poration, copies of the last finan.
SPENCE BOSSING AROUND"
警官
law, was next called. He stated that
ho had known Chalmers a little over a
year and had worked for him in the
North China Trading Co. Witness kaew: hardly anything about the Contioning, witness said that he Bowe could go to America and in North China Trading Co. Witness paid Bows Tis. 500 under the corporate an insurance company. went on to describe the interview at agrarmout. Wallace suggented that Did you think it quite natural that which Chalmers, in the presence of the position of manager should be Bowe should change his name Spence, first informed Wallace, at the gives to him, and witness took him Well, I never did it, but he seemed to offion of the Celestial Mercantile Co, to see Bowe, who was then staying at think it was. that he was opening up on insurance the Yih Ping Shang Hotel, under the Witness explained that the York- basives Spence asked what exname of Chapman. Bowe did not Trading Company, of which he was perience Wallace bad had, and he was care to whom he gave the agencies so manager, was a concern for the manu dowed to become inangger. On Inne long as the money was forthcoming. I facture of cigarettes in Shanghal, and 1, withers begab work in the insur Two or three days later Bowe had the Chitose were behind him in this ante office as clerk, receiving $50 a trouble at the botel because he could Did Bowe tell you anything about month to learn the business. He did not pay his bill, and ho telephoned to these insurance companies, about not see Spence for a day or two, but the office, Walinos was in the office" their capital, etc, 1-No,
His Lordship then thanked the jury and gave them two years' exemption.
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