May 21, 1898.]

THE BANK NOTE FORGERY.

Heinrich Grosse and George Schultz, Ger. mans, were brought before Mr. Wolferstan at Singapore on the 5th May and charged with having on the 27th April used as genuine cer- tain forged documents, namely, twenty six bank- notes purping to be of the value of fifty dollars each, and fifty notes purporting to be of the value of twenty-five dollars each, all on the Hongkong and Shanghai Bank; also with bay- ing in their possession a certain instrument for making an impression, namely, a numbering machine for the purpose of committing forgery, Mr. Cuscaden said he was afraid he could not get through with the case until some important document were translated.

The magistrate said every effort ont to be made to get the case ready for the Assizes.

Keena Meerah Hussain said he was a money changer. On the 27th of April he went on board the German steamer Preussen at Borneo Wharf. He met H. Grosse, but did not see G. Schultz. Grosse wanted to purchase two hundred and thirty-eight sovereigns at ten dollars eighty cents each and would pay for them in Hongkong bank notes. Witness went to Kling Street and purchased two hundred and twenty-four sovereigns. On his way back to the wharf he met H. Grosse; witness got into defendant's gharry and drove towards Singapore. In the gharry, the defendant put his hand into his pocket and pulled out a roll of fifty dollar notes of the Hongkong and Shanghai Bank. There were twenty six notes in the roll. He also handed over fifty notes of twenty-five dollars each. The whole value was two thou-

sand five hundred and twenty dollars. Wit- ness gave two hundred sovereigns and took the notes. The balance was not paid. Witness

looked at the notes and found that the Chinese characters for the name of the bank were smaller than is the rule. He became suspicious and told the defendant that witness would pay the balance of thirty-six sovereigns, if defendant fol- lowed him to Mahomed Tamby's shop in Kling Street. They went there, and witness sent the roll of fifty dollar notes to the bank. One Ma- homed Yusof took the roll. Seeing that Yusof did not return, wituess gare the other roll to Mahomed Tamby to take to the bank. While they were away, witness gave the balance of thirty-six sovereigns to the defendant. Mahomed Yusof returned from the bank and said the notes were bad. Witness and defendants were called

to the bank. Witness told defendant that the notes were bad and demanded back his gold. This was returned, and they went to the bank. The police were sent for, and the prisoners were removed in custody.

By the court-The conversation with the defendant was carried on in English.

Mahomed Yusof, an assistant to Mahomed Tamby corroborated.

Mahomed Tamby, a trader in Kling Street, said that Keena Meerah Hussain came to him, on the 27th April, and bought two hundred and twenty-four sovereigns. A half-an-hour later, he returned in company with II. Grosse, and handed witness two rolls of notes to count. They were all quite new. Witness. suggested that it would be well to send the notes to the bank for examination. The fifty-dollar notes were sent, and witness afterwards followed with the roll of twenty-five dollar notes. Witness took all the notes to the cashier who took them to the manager.

He then learned that the notes were bad. He was asked how he came by them, and Le explained who brought them. Keena Meerah Hussain and H. Grosse were sent for.

Mr. L. Pike, cashier of the Hongkong and Shanghai Bank, said he was on duty at the bank on the forenoon of the 27th of April. Two notes of fifty and four of twenty-fire dollars were handed to him. He suspected the genuineness of the notes, examined them care- fully, and came to the conclusion that they were forgeries. Mahomed Yusef presented the notes and when asked if he had any more, said he had, and gave

two rolls to him. He was told the notes had been obtained from a European gen- tleman on board the German mail. He ad ́vised the witness not to lose sight of this gentle man. Defendant was sent for and came Defendant was taken to the Manager and

CHINA OVERLAND TRADE REPORT.

volunteered the statement that he had pur- chased the notes at Colombo, at the rate of 1s. 8d. and Is. 9d. a dollar, and, thinking he would make a good profit, took a large quantity. Witness said, there were several ways by which he would know the notes were forgeries. (1) The Chief Accountant's signature was lithographed; it should be written. (2) The year was left out. | (3) The written value of the noto was indistinct. (4) There was no water mark. There were other small differences between these notes and genuine ones. Inspector Bourne went with | H. Grosse to the German mail, and returned with a large box and a smaller tin one, which were taken to the police station. Sixteen ten dollar notes were put in, which witness de- clared to be forgeries, another roll of fifty and twenty-five dollar uotes were put in and they were likewise declared forgeries. These two rolls were found in the box belonging to G. Schultz. Other notes were shown to witness with the same result.

Mr. W. Adams Oram, Manager at Singapore of the Hongkong and Shanghai Bank, said he Mr. Pike brought some notes to him. remembered the 27th of April. On that day, Two rolls were put in and recoguised by the witness. They were forgeries. He was talking to the money changer when H. Grosse was shewn into his office, and explained how he came to get possession of the notes. Witness had received a letter from the bank at Hongkong, stating that the notes were not those issued by the bank.

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the cabin with him. He found a tin box, and in it a large quantity of notes of various de- nominations. They were new. A large sum of money in gold, silver, and Bank of England notes was in the box, and also some jewellery. Another box was found which H. Grosse said might belong to Schultz. This man denied owner. ship, and said he did not know how the box came to be in the cabin. A bunch of keys was found ou the person of Schultz, but none of them fitted the lock. Witness had a key which he had taken from Grosse and this fitted the lock. In the box were packages of notes of twenty-five, twenty, and ten dollars. Witness took possession of the things and formally arrested the two men. Witness then learned that the defendants had occupied another cabin, In it, he found a large trunk bearing the initials of Schultz. Forged notes were found in the cabin and in the trunk. * There was also a loaded revolver. He brought the luggage and the prisoners ashore, and took them to the detective station. The contents of the boxes were counted. In Grosse's box was found a numbering machine. The numbers corresponded in size and form with those stamped on the notes. A similar machine was found in Schultz's box. They were inked ready for stamping, A small box contain- ing lithographers' instruments were also dis- covered; also a case of mathematical instru ments, and a sharpening stone. A number of documents (produced) was found in Grosse's box. These were submitted to the German Consul, who selected those that seemed import- ant, and had a bearing on the case. Some bills were produced showing that the defendants' had lived together at different hotels in Colombo. Other documents in German were put in. Wit- ness, continuing, said that on the following morning he received a telephone message from Borneo Wharf. He went on board the Prussen and received notes valued at over six thousand dollars. The total value of the notes found amounted to two hundred and twenty-one thous- and dollars.

Analyst, said he received certain notes produced Mr. G. H. B. Matthews, Acting Government

from Inspector Bourne. He examined them. The paper was not the same as that used for the notes of the bank. The forged notes were smaller. The quality of the paper was about the same as that generally used for notes. There were other discrepancies. The Chinese lettering on the forgery was scar- cely visible, while the geunine nots showed this distinctly. The dollar figures were smaller than they should be. The cross line in the figure 5 Mr. Albin Elper, Secretary to the German was straight in the genuine note, in the forgery Consulate, said one of the documents put iu it curled at the end. The twenty-five dollar was a letter from Mr. Ludor Ahn to H. Grosse uotes also showed dircrepancies. A tin box con- in London, stating that some notes of ten taining various chemicals was handed to witness. dollars value were sent for inspection and There were in it seven bottles containing puregly-approval. There were four Hongkong bank- cerine, tiucture of cantharides, lubricating oil, notes, three Australian banknotes, and two petroleum benzine, and polish, a tin of polishing Netherlands bank notes. The letter was dated paste, a tin of yellow enamel, a box of paints, from Bremerhaven in November, 1897. The and also an envelope containing two small pack-writer said he had no large notes. Another ages of Chinese rhubarb and bioxalide of potash; the latter was used for removing signa- tures. There was also a water-proof bag with four bottles, one of gum, one of drops, another that had contained corrosive sublimate, and the last contained indeliable ink, also a piece of Indian ink which could be used for marking the Chinese lettering on the back of the notes.

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paper purported to be an agreement between Mrs. Gritters and G. Schultz and counter- signed by H. Grosse that Schultz should work as a lithographer and do his best in the in- terests of his employer; Mrs. Gritters was his mother-in-law.

Mr. Pike recalled, said that the packets of notes found on board the Preussen were forgeries.

The prisoners were committed for trial.- Straits Times.

SENTENCE ON THE PRISONERS.

the [SPECIAL TELEGRAM TO THE "DALLY PRESS."]

SINGAPORE, 17th May. In the case of the Bank Note forgeries Grosser has been sentenced to ten years' penal servitude and Schultz to eight years.

Inspector Bourne said that on the 27th of April, he went to the Hongkong and Shanghai Bank and saw the Manager, Mr. Pike, and the defendant, H. Grosse. He was shewn two rolls of notes which were said to be forgeries. The defendant told witness he was principal of 器 firm of commission agents at Cologue, and that he had bought the notes, some three thousand eight hundred dollars worth, at Port Said and Colombo. He was on his way to China to buy silk. The balance of the notes would be found on board the steamer Preussen. If the notes were forgeries, he had been duped. He had circulated a few among the passengers. on board. Witness afterwards got a note of twenty-five and two of ten dollars each from a money changer. The defendant was taken to the police office, and on being searched, a revolver loaded in seven chambers was found on him, also seventeen notes of fifty dollars, three of twenty-five and eight of ten, amount- ing to one thousand and five dollars. He had also six gold coins, English and German, a dollar, six rupees, two shillings, three pence in silver, and a Japanese twenty cent pieca. The gold was given to some passengers on board the steamer, who had received forged notes-from the defendant. There was also a letter ad- dressed to the defendant's wife. Witness then got permission from the German Consul to search the steamer. Cabin No. 103 was pointed out as that occupied by H. Grosse. He learned later from H. Grosse that G. Schultz shared

AN UNLICENSED DISTILLERY

UNEARTHED,

EXTENSIVE SEIZURE OF SAMSHU,

At the Magistracy on 16th May before Com- mander Hastings, Chan Kat and Chan Kan, acconatants, were charged with unlawfully distilling intoxicating liquors, namely, Chinese spirits, without a license. Mr. Gedge appeared for the defence.

Inspector Moffat said that at two o'clock on the afternoon of the 14th inst, by virtue of a warrant of which he was in possession, he en- tered the house No. 9, Sai On lane, and seized 165 jars of Chinese spirits, some of which were on the ground floor, some in a cockloft and some on the first floor. He also seized six large earthenware jars, capable of holding 50 for 60 'gollons each, on the ground floor. They were almost full of Chinese spirits. One of the jars contained spirit which was quite warm. He found six stills at the back of

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