Establishment
Of General Agent
MR. KOBZA'S EVIDENCE AT INQUIRY
MR. E. A. VON KOBZA-NAGY gave evi- dence this morning at the Supreme Court, at the resumed sitting of the Commission in- vestigating the Immigration Office.
Mr. Kobza was represented by Mr. P. Winter-Blyth, who said that had he been pre- sent at the first hearing he would have ques- tioned Mr. Pudney.
The Chairman (Sir Atholl Mac. Gregory: An opportumty will be given to you later
Answering questions by his solicitor. Mr. Kobza detailed the circumstances of his connection with the Immigration Office, be- ginning with an interview with Mr. Forrest and Mr. J. H. B. Leo at the Post Office at which Mr. Forrest was seeking to discover the lowest fair price for two passport photographs,
He told Mr. Forrest that they could be produced, if in quantity, at 50 cents for two.
He agreed to undertake to produce photos at that figure and also to set up a studio at Marina
House.
Studios in N T.
Later, he was informed Mr. Lee that the plan had
Government's ceived
bating the racketeering and asked him if he could do the work of Aling in forms and issuing photo- graphs at a minimum rate. He told Mr. Forrest he saw no reason why a charge of not more than $1 should be made to cover clerical work and the supply of photographs. He immediately started to operate on that basis.
wanted
At the beginning of January, Mr. Forrest indicated that he to decentralise the work through the agencies and asked witness whether he would be prepared to act as the go- between between the agencies and the Immigration · Office. A written agreement was moot- ed and after further discussions, he was told that the new scheme should operate from Jan- uary 21. Mr. Forrest" sketched by out a rough
form of agreement and witness took it to his solici- tors This agreement
was signed on January 22.
re
approval, and he started work on Novem- ber 18. Subsequently, he receiv
ed letters from Mr. Forrest usk- ing him to set up studios in the depots at Kennedy Town and Wanchai and afterwards at Tai- po. Un Long, Shataukok, Lokma- chau and Sheungshui, and also to establish mobile studios the New Territories.
When he started he
in
charged
only 40 cents for two photos he
cause he found he could purchase materials cheaper than he thought, and passed the benefit on
the
to
public. The materials
he bought were of British manufac-
ture.
At first he produced about, 4,000 photos daily, but In December the business
came to a sudden stop. The reason was found to be the activities of touts and brokers sent byi certain agents) to approach clients in the streets; He actually saw their way to the studio in Marina House being approached by touts
persons on
An endorsement was added at Mr. Forrest's request on January 30.
Bank Account
The agreement provided that he keep a separate account at the Hong Kong and Shanghai Bank. and he intended that the account should be styled "General Agent,
Immigration Office."
name, said Mr. Kobza, but the It was actually opened in this
bank telephoned him and in formed him that the account would be known as Kobza Art Studio No. 2 Account.
Treasures and quite often had days to do the work for their valuable Government property in clients, and added that an ap- his possession,
plicant applying for a Deposit Referring to the bank account, re und had to attend personally Mr. Kobza, in reply to the Chair-at his office. man, sald that the account Questioned by Mr. Woo, Mr. was opened
February Kobza said the scheme of issuing 12. He had suggested an auditor. Temporary Permits .caine int> He had called on Messrs. Lin-torce at the same time as De- stead and Davis, and Mr. Forsyth posit Receipts.
on
out
re-
told him it was not possible for Mr. Woo "Can you point them to carry out the duties at anything in the Ordinance present. He approached another garding Temporary Permits?" gentleman (his name was written "I have not seen the Ordinance." and given to the commission). In reply to Mr. Forrest, Mi. not a qualified auditor, Kobza stated that he had been He was but he was an expert accountant, acquainted with Mr. Forrest for This gentleman was willing to nine or 10 years and during the He had told Mr. Forrest of this,finitely friends"
past year they had become "de- but Mr. Forrest had not approved in writing.
help him.
Cheque Signature
Not Easy
The suggestion for the Agree- Referring to the clause requirment, said Mr. Kobza, came from
Mr. Forrest. ing cheques to be counter-signed
He saw the draft by an auditor, and that the speci- but did not accept it in its en- men signature card contained that tirety. Mr. Forrest was not easy
to bargain with.
The General Agent's Secretary was approved by 1
who stated that she was sun that could be trusted enforce proper supervision,
of
his secretary, the chairman said that this was a variation and a departure from the clause.
Mr. Kobza said that he did not do anything without consulting Mr. Forrest.
After Linstead and Davis had refused to do the auditing Mr. Kobza told Mr. Forrest that he would get another.
an auditor,
i
Mr. Forrest, a per- and
any the
Mr Forrest: "Did you at time give me to think that terms of the Agreement had al- ready been complied with?" "Yes."
Mr. Kobza was asked what he meant by not approaching another
"Did at any time dispense firm of auditors and if, by the fully and finally of the auditor specimen signature of the secre- and accountant?”—“No.” tary, he had abandoned getting i "Owing to pressure of work on He said that he had your part and mine, the ques- obtained an expert accountant, tion of appointing an auditor was but agreed that he was not an postponed?"--"Yes, the present auditor. There had been no audit Inquiry also postponed it." of his account.
1 Miss Lam, in a statement be- fore the Commission, stated that she came to know Mr. Forrest in the Spring of 1937 and they became gradually good friends.
On the question of security, Mr. Kobza said he would not now like to approach anybody.
At this stage. Mr. Wynter Blyth said he had intended that some of the previous answers to be brought out in the evidence of a clerk, and he was allowed to put further questions to witness.
Measure Of Control
In reply. Mr. Kobza said that the agreement
provided ΤΟΥ measure of control of other agencies, and explained the pro- cedure. He received applications from them, forwarded them
to
the Immigration Office and hand- receive any payment ed the permits out. He did not for this. This work cost him about $500 a month.
He provided the same service to travel agencies, ship- ping offices, solicitors, associations He verbally informed the Im-end Clubs and the Chamber of migration Officer of the bank's Commerce. message and Mr. Forrest was quite satisfied.
The cheque referred to in the evidence given by Mr. Pudney, was drawn on that special ac- count.
Visit To Mr. Pudney:.
who pulled them away and gave went to see Mr. Pudney and ask- Continuing Mr. Kobza sald he them cards on which was inscribed him to visit his office and to ed the statement that if they tell him if he was cloing any patronised a certain agent they thing would be able to get their docu-
rments earlier,
Asked For Protection. He called on Mr. Forrest, who disclosed that:
some of
these
He said the agreement had been carried out and that the expenses he incurred monthly were $1,000 rent, $3,000 salaries,
$600 for material and $400. for sundries The margin of profit was about $500 to $600, if he did well.
The idea of a banking clause
tor clause was his. was Mr. Forrest's but the audi-
Asked whose idea it was that the auditor clause was not strict- went to see Mr. Pudney and told "Nobody
wrong. Later he again ly carried out, witness replied, in particular." He him that he (Mr. Kobża) had found it could not be carried out come to see him not as the Ac-immediately. countant-General but as Mr. Had auditors been appointed, wrong with his agency. Pudney to ask him what was the audit would have been done
when Mr. Forrest desired.
It
In reply to the Chairman, wil ness said that: an accountant: was working at his place studying the accounts. He was not an auditor, but even an auditor had to learn the system first.
agents had not been recognised that the money he was handling every two or three months.
Mr. Pudhey said he thought was agreed that audit was to be by the Immigration Office. As should not be paid into his ac this racketeering continued, he count. again saw Mr. Forrest asking for some protection since; in meeting He did not remember the ques Mr. Forrest's proposals, he tion of Government shroffs thea, had Invested everything. in but he brought the rnatter up the business He told Mr. For with Mr. Forrest who told him rest he could no longer carry on.
it was quite impossible, as he He was losing-money.
could not get any himself
- Mr.: Förröstf.then said the
By government shroffs; he did: situation could be improved if not mean shroffs employed by Mr. Kobza, would also act as Government, but shroffs secured,
Temporary Permits
Mr. H K Wob: "Were you required to carry out any duties other than those in the Agree
Officer
What were these orders?" "I cannot remember them all."
· by Government.. an Agent filling in, forms:. for In reply to Mr. Wynter Blyth, ment?" Mr. Kobza: "Any orders. applicants, and this he decided
witness said he received money, that the Immigration to do.. At that time Mr. Forrest told before a pormit was issued. That might give." him he had discovered that some money was paid into No. 2, he of his employees were interested count which was objected to by
Mr. Pudney, in the ageñoles, and added that he was opposed to. a monopoly. Later, Mr. Forrest changed his mind and said he was about to propose a scheme to Government for a monopoly. He (witness) was in- vited to write any suggestions he might care to make and did so, Later, he was told Government had rejected, the - proposal..
Minimum Rate:
When he received: the money, he could have paid Government in cash but he was told it was not Government money yet. He did not consider he was handling. Government money, until he had received the permits.
"Were you authorised to issue Temporary Permits to those.de desirous of entering the Colony?" "Yes, I was authorised In writing." S
"Were you authorised, or be- half of Depositors, to apply, for Refunds?""Yes"
"According÷to; a notice posted Government Working up at the Immigration Office you. were able to do the work quick- He had been employed by Gov- "er?", m. “Yes,!! In a further interview, Mr. ernment before, was for 11 years Mr. Kobza sald. It took Forrest asked for his help in com- } in charge of... Government Art | office an average of one, toutwor
ATTACK ON GERMAN SHIPPING
An
vessel enemy was sunk in an at- tack on shipping off the Dutch coast by aircraft of the Bom- ber Command on. Monday afternoon. The Air Ministry communique records that one aircraft is missing from this operation.--Reuter.
variably accompanied by Mrs Rainer. When the Immigration Office was opened she applied for permission to act as an agent and this was granted by Mr. Forrest. At no time did she receive any favours from Mr. Forrest.
this The Inquiry was resumed afternoon when evidence was given by Mrs. Rainer in camera.
BISHOP'S HOUSE ARREST
Sentence of one month's hard labour was imposed on Ng Kwan- tak, 24, this morning, for loitering
the entrance of the Bishop's House last night.
A Chinese detective was spe- cially nosted to watch the pre- mises, because several burglaries She was confined to hospital had recently occurred. At for 18 months and during that about 11 p.m., defendant was seen period she was visited by Mr. walking to and fro near the Forrest, Mr. Forrest
in-entrance of the house.
was
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