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May 9, 1903.]

box. His English name be said was T. P.

Jackson.

His Lordship What does “T P.” stand for? | Witness-Thomas Peter. (Laughter.) Cross-examined by Mr Morgan Phillips-He had known plaintiff over 20 years. He had lived himself a short time in Hongkong. he was not a relative of the plaintiff. He had no business relations with plaintiff before March, 1902. He was quite sure that he made a tender to be sent it in the US Government for rice, through Mr. Blume. Mr. Blume told him after- | wards that he did not send it in because the price quoted was too high.

In relation to the question which brought out the last statement bis Lordship said the witness had fenced with it and advised the witness to listen to the questions and answer, as they said in America, right away.'

Cross-examination continued-He also made a bid for an underwear contract for the U.S. Government. Mr. Blume told him that a depreit was necessary if he got the contract. He had not to put up any security when he sent in the bid.

Re-examined by Made-The U.S. Govern ment asked for tenders for 3,000,000lbs of rice. He did not tender in his own name because be thought he had more chance if he bid through the American film.

His Lordship-T. P Jackson is a good name. isn't it?

Mr. Blade-But the bid was made for the Kwong Loong firm.

CHINA OVERLAND TRADE REPORT.

| from Longkong ?.

Examination continued-The arrangement made with the American Commercial Co. in reference to this tender was that they should halve the net profits. He was to supply the capital. Mr. Binme told him that he had not got the contract after the tenders had been opened. Mr. Blume informed him at the same time that he had not sent in his bid; he had sent in the bid of another Chinaman who offered. By the Court-He did not know what day the tenders for this rice were opened. It was some time in Angust. The deliveries of this rice were to be made, he thought as far as he could remember, some time in August.

By the Foreman of the Jury-When he applied for delivery of the box at Manila he was informed that the box was lost, not that the contents were lost. Mr. Blume told him that his tender had not been accepted one or two days after the tenders were opened.

The Foreman-You tender not having been sent in and therefore not accepted, why was it necessary to get this money from Hongkong? Witars8-Because I had made an offer for a contract, and the money had to be put in deposit. The Foreman-But you had been informed that you could not get it.

Witness- I must have the money when I

make the tenders.

His Lordship-What he means is that be intended to have the $50,000 at hand in case of

future contracts.

Witness-I know the government must have deposit; therefore I must have the money to pat for security.

His Lordship-But you had been told you had not got the contract,

Witness-Yes; from Yokohama, Nagasaki and Kobe.

Mr. Slade-You did that business direct ? Witness-Yes.

Mr. Slade-And sent the money up? Witness-Yes.

Julius Cohn, the next witness, said he was cashier of the American Commercial Co. He was a brother of Charles Cohn, the attorney, and a director of that Company. He knew the previous witness by the name of Jackson. He had seen him often. His company did a large business as provision dealers, They contracted with the U.S. Government both for themselves and other people. He bad seen Jackson at the office of the Company Jackson was there in connection with bide for government contracts. He saw the manager showing Jackson a sample of a blue flannel shirt such as was used in the constabulary. That was in July or August last year. He heard Jackson asking the manager if he could get the goods at the price of the last bid for these contracts. The Company was a limited company registered in Hongkong. The capital was $750,000 Mex. He did not know whether it was fully paid up.

Cross-examined by Mr. Morgan Phillips-He knew that Mr. Blume, the manager of his firm, had given evidence in Manila' in this cas. Hy was not aware that Mr. blume had said then : We have never been fortunate to get a contract which has been on offer by my clients." He thought he could explain tha, however. The business with Mr. Jackson did not materialise, did not go far enough for him to know the exact conditions. The firm had received bida from other clients and had got a contract for them. He did not know the conditions existing at the time Mr. Blame gare that evidence. He was not aware whether or no the U.S. Government required 8-city from contractors,

Re-examined-The firm had got big contracts for coal to the U.S. army in the Fhilippines, partly their own and partly for other people He did not know what security was required in connection with U S. government contrac's

Mr. Slade said that this was all his oral evidence. He went on and read the evidence taken on commission in Manila.

Referring to the evidence of Mr. Blume, which was among that read,

His Lordship said it amounted to this, that he as manager of the Commercial Company had dealings with Jackson, the partner of the plaintiff; that Jackson wanted him to tender for rice but he did not tender for it because Jackson's prices were too high, that he did ten- der for Jackson for a constabulary contract of $12,000, but did not get the contract. If they boiled down Mr. Blume's evidence it amounted to this, that he might have had to call upon Jack son to secure $12,000 in August last if Jackson had got the contract, and that the U.S. government were asking for other tenders which Jackson desired to go.into.

Witness-But there were others. His Lordship-At the same time several his Lordship on the ground of irregalarity, other contracts were in the wind ?

Witness-Yos.

The Foreman-What did you do with the $200,000 worth of cargo sent to Manila from the Man Loong previously to this ?

Witness-The goods were sent to the stores

for sale.

The Foreman-What did you do with the proceeds of that sala?

Witness-We forwarded some to Hongkong to pay in some part for the goods.

The Foreman How did you send that money?

WitnessThrough some of the Chinese banks or stores.

The Foreman-What banks? Witness mentioned two Chinese banks. In reply to further questions, he said he was not aware what amount of profit was made out of the $200,000 worth of goods. It was about 10 per cent.

Mr. Slade said that as there was an obvious inference to be drawn from thess questions be would like to ask whether the firm obtained goods by that money from anywhere else than

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there were two on board the Zafiro. (Counsel here produced a plan, which le exhibited to the jury, showing the position of the two strong- rooms.) The plaintiff saw the chief officer on the saloon deck, and from the saloon deck they went down a ladder leading to the two strong- rooms. One man, supposed to be the sampan man, was carrying the box, and three witnesses- the chief (fficer, the second officer, and the chief engineer, who was on the saloon deck when the men came aboard with the bex-woud tell the jury that this man carried the box, which was wrapped round with a cloth, quite easily upon one arm. Those witnesses would say that they were afterwards struck by the fact that the box seemed to be quite light, and not one likely to hold such a sum of money as $50,100 gold. At the strong-room the door was opened. and the box deposited on some cases of silk lying on the floor. The cloth was taken off and the 'second officer examined the seals. In doing so he turned the box over on the cases of silk, and said to the plaintiff, who was standing near the door. "How did you manage to get $1,000 gold into a box this size ?' The plaintiff replied, "Oh, it is all in notes." The weight of the box the second offlcer judged to be between 10lbs. and 14lbs.-quite a light box, and nothing like the weight of the box in Court, which was 534lbs. This would be shown in evidence to be the weight of a box containing $49.500 in United States notes and $500 in American silver. That, Mr. Morgan Phillips emphasised, was a matter of very onsiderable importance. The e was another point to which he desired to direct the attention of the jury. The mate'sr cept, which was made out by the plaintiff before he went to the ship, stated the con- tents of the box to be United States banknotes amounting to $50,000; there was no mention whatever of silver dollars. The insurance policy, too, ouly mentioned notes. To go back to the strong room, the door was locked by the second officer and the key given to the chief officer, whose duty it was to keep the keys of the strong-room. The receipt for the hox was given by the chief officer, and the plaintiff and the other man went away. At four o'clook that afternoon the mail came. It was a very small mail-one bag, only half-fall. The second officer obtained the key of the strong- room from the chief officer, uuloczed the door, threw the mail bag on the cases of silk, locked the door, and went on deck. When he got there the chief officer told him that a lot of parcels had arrived, and with the assistance of two or three sailors he took the parcels down to the strong-room, where they were deposited, the second officer meanwhile standing near the door. The door was again locked and the key returned to the chief officer, who kept both keys in a drawer in his cabin; the key of that drawer, except when he retired for the right, was constantly ou

his person.

On the 15th. the Zafiro arrived at Manila, and soon after she arrived the mail was taken off, the second officer superintending the_operation. The next day the witness T. P. Jackson sent to the Zafiro for the box of treasure, and when the second officer went down below to get the box he found it was missing. Å search was immediately made, but there was no doubt that the box was gone. That box had never been seen since, not, at all events, by the defendants, or anyone they had heard of. The case for the defence was simply that this was a deliberate fraud on the part of the plaintiff-a concerted plot. He might have had a confederate on board the steamer who, either during the voyage from Hongkong to Manila, or while the ship was lying in Manila harbour, entered the strong-room by some means and took the box out. To suggest a way ig. which it could be done, the keys of the strong-room might have been obtained by one of the seamen whilst the chief officer was asleep. There was another way, however, and an even more likely one. The Zafiro was in dock some five or six weeks before she left Hongkong on this voyage, and during that time a mould might have been taken of the key of the strong- room and a false key made which was after- wards used. There were suggestions as to the method probably adopted; that the box was taken away there was not the slightest question. In opening the case, Mr. Sharp had generously said he attached no suspicion whatever to either the chief or the second officer of the Zafiro; they

This concluded the case for the plaintiff, and Mr. Morgan Phillips, who desired, before open- ing on behalf of the defendants, to call three witnesses from the Monterey, but who e ap- plication for permission to do so was refused by addressed the jury, whose great commercial experience, he said, was a source of gratification to his clients as it must also be to his Lordship, for it would enable them to bring a thorough knowledge of general affairs to bear on the case. It was impossible for him to call direct evidence to show that when this box was taken on board the Zafiro it did not actually contain $50,000 gold, and it was equally impossible for him to call direct evidence to show whose hands took that box from the strong-room of the Zafiro. If such evidence had been forthcoming, if euch information had been forthcoming, then the case would not be before the Court, at all events in its present fashion. Reviewing the facts, Mr. Morgan Phillips said that on the morning of 12th September last the plaintiff went to the Zafiro with a box. He was accompanied by another person, probably the sampan man, and on the Zafiro they saw the chief officer. The plaintiff told the chief officer that he had a box of specie-American money-for shipment to Manila. Accompanied by the second officer, the chief officer went down with the plaintiff and the other man to the strong-room, of which

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