Page

f.

AFTERMATH OF

NEW YEAR.

UNEMPLOYMENT 'IN

CANTON.

BUSINESS UNCERTAINTY,

"RED" ATROCITIES. IN THE

DISTRICTS.

MACAO STUDENTS.

VISIT TO HONG KONG

TO-DAY.

PROGRAMME OF SIGHT- SERING AND TENNIS MATCHES.

Over one hundred students from the Lytetin Central de Macno. will

FROM OUR CHINESE CORRESPONDENT. visit Hong Kong to-day. To be

A large number of persons have beer thrown out of employment in Canton since January 24th, the

exact the number are 3 girls and 76 hays: they will be accompanied

the Rector of the Lyceum, Soubor Borges Delgado and nine of the staff, a ladies and 3 gentlemen For a colony the size of Macso it is well provided for in the mRLLOP of educational facilities, and the geeum is a preparatory colleke for the universities of Portugual There is an examination every year for 2 or 3 students from. Marap to take a university career at the cost of the Government of Macno The present Cavernosol Macno Tad à student of the Lyceum and so were his brothers.. including Senhor Joao Tanagisini Barboșă who inter held the portfolios of Finance and Navy, suresively, in the Ministry

second day of the Chinese New Year. This was expected now that the ancient right of employera to engage us dismiss kis is once more in force. The free exercise of the prerogative must be attributed to bad trade. Last year and uncer- tainty as

Many to the future. employers now prefer a daily or moathly to un annual agreement. Professional labour agitators have undermined the discipline of the workers to such an extent that no one is going to saddle himself for a year with one of Borodin's sible adherents, Many small shop owners in Canton have placed only their relatives on thar permanent

To-day's Programme. employment list, and the large shops

The party will arrive from Macas are retaining only those who are absolutely faithful and indispen. ↑ by the s.s. Nui Tui at noon And sable.

.

},

in Lisbon

with received by representatives of the Portuguese associations is Hong Kong. The visitors will b accommodated in "the St. Francis Hotel

Not until next Monday, and in some cases not until the 15th day of the Chinese New Year (February 6th) will the number be known, of firms, big and smali, which, will close down. Fear is being expressed that many native bank“ and a large By courtesy of the Vice-Chan wumber of weaving and knittingevilar and pofessorial staff of the factories may very much prolong Hong Kong University the Party- their New Year holidays

A students will visit the al Apprehension is growing in' Can-versity at 2.30 pm. today. At 5.30 ten that the Authorities may levy pan. there will be erception at. another $10,0000 costribution from Club Lusitano When the Com the trading community in the form mitte and members of the Club of Joatis The mentory is strong will be hone their

friends. of last. September's demands when bankers were forced to lend 60 per

In the evening commencing F ceat, and other merchants, 40 jer.. the Lyceum students, will give sent of their registered capital to convert at the "Star" Theatre

Th

consists the Central Bank of Ching is Carton. The proceeds were to have variety of musical items including gone towards the habilitation of the Bank but the money has never been necanted for and the present value of the Bank's notes is less than 60 per cent.

New Year holdings in the Customs

Service in Canton came to an end

yesterday and all river boats plying! between Canton, Hong Kong and

programme

of n

THE HONG KONG DAILY PRESS, FRIDAY, JANUARY 27th, 1928.

CANTON TREASURY AND THE

IRONSIDES."

A THREE-DAY FINANCE COMMISSIONER CHARGED.

MONEY FOR CHIANG KAI SHEK, AND' T. V. SOONG?

CASE OPENED AT CENTRAL MAGISTRACY.

The case against the two oficials of the Central Bank of China ... at Canton, who are ülleged to have-stolen-about a million dollars, was again before Mr. R. E. Lindsell at the Central Magistracy yesterday. Much of interest was stated during the course of the proceedings. It was said that one of the defendants, Wang Chung Chu, was made. Finance Commissioner by the "Ironsides " 'during their short regime, and that in the course of three days, he had succeeded in diverting this huge sum. from the treasury

Some of this money was intended, it was alleged, for. General Chiang Kai Shok" and some for Mr. T. V. Soong..

vaults.

"THE TANNERY LOAN.”

The prosecution stated that in order to induce the compradore of the Hong Kong and Shanghai Banking Corporation at Shameen to accept Chinese subaidiary coins for Hong Kong currency, Wong Chung Chu, in his capacity as Finance Commissioner, offered to. repay an ob lean of $200,000 to the Hong Kong and Shanghai - Baking Corporation. This transaction, in which the brother of the compradore of the Hong Kong and Shanghai, Bank was held res ponsible to the bank, was called the "Tannery Loan:",

ONE DISCHARGED.

At the outset of yesterday morning's proceedings, the second defendant, Chin Pok Shan, was discharged on the ground that he was a British subject and, then fore, could not be charged undir an extradition warrant. There were 1 charges against Wong -Chang Chu, which were reduced to three at the afternoon, sitting: Mr. Sheldon, for the prosecution, being unable to offer evidence to 'substantiate the others...

Legal arguments put forwaad by Mr. Eldon Potter, for the He defence," in the afternoon were particularly interesting. eriticised the ense as contrary to British justice and submitted that it should not go before a jury. He pointed out to His Worship that the opening by the Crown suggested no evidence of criminality on the part of the accused. The case, he said, reeked with poli- tiee from the beginning to the end.

The case will be continued this afternoon.

Wong

Chung Chu, Finans Com, then the position and dignity of missioner, and Chiu Pek Shan, the Court was gone. "Your Wor manager of the "Central Bank of ship should discharge the man and China, both appointed to their posts see what steps the Canton Govern a few Portuguese folk songs with subsequent to the recent Relement would take." vinil and guitar accompaniments upheaval, were charged at The proceeds of the concert will be Central Magistracy ander an extra in aid of the Casa Academies - the Actulving Funds-for the dition warrant with the lareen of echt of pour des attriding several suns of mones amunting the Lyceum.

Visit To Kowloon Decks.

the]

to about one million dollars.

Mr. Eldon Potter, K.C...and MA, The programmer for Saturday 'in | F. C. Jerkin, istrupted by Mr. Wuchow resumed service last nightcludes a visit to the Decks at K. K. Lo, appeared for the defens, Ion, permission having been ind

or will do so to-day,

A Wagh there is a good deal of apprehension of a Red "out- break, and the Authorities are re- fusing persons who cannot give re- Bable references to land at the port.

Many large firms, while re-opening before next Sunday, have decided to virtail their business until the

There is n

fiscal poles of the Administration is clearly laid down.

fear that the Central Bank notes will continue to drop and that the Administration will igaure the notes hy requiring certain taxes to be paid in specie and ordering higher rates if payment is made in notes.

BRIGANDS AND REDS. Taking advantage of the critical military situation on the East River Sector, where both the 4th Army (Kwangtang) and the 7th Army (Kwangs: Clique) have lost heavily

since the middle of the month in the struggle for Swatow, pirates and bandits along the West and the North Rivers, have been exceeding Is active, and several junk lines between Canton City, and inland water ports have failed to resume their service after the New Year.

given by Mr. E. Cock, acting while Mr. H. G. Sheldon, instruct chief manager, who has placed 2 led by the Hon. Mr, W. E. 'L.. steam-launch at the disposal of the Shenton, conducted the case for the Retr

On Saturday afternoon tragis matches have been arranged "ber tween the visitors and the Cinh do freio on the Club's ground in Kg's Park. Following tennis, hembers of the Club de Recrsio

will hold a tenparty..

The party will return, by the morning boat on Sunday,

CROWN LAND SALE.

"At the offices of the Public Works Department yesterday afternoon, there was a sale of Crown Land

Mr. Sheblon said that from a

cable which he had received, the quisition would be in Hong Kong to-day. It has been in the hands of the British Cazul at Cantou for the last four days.

The Changes of Government. After hearing Mr. Sheldon further the delay in the arrival leve

requisition, Mr. Eindsell gave to open the ease.

Before he opened Mr. Sheldon again asked the defence to waive prosecution on behalf of the Crown | plin right of taking exception to this

the Commencement. Mr. procedure,

China.

Sheldon told the hurt that he Mr. Petter pointed out that if he would not proceed against the were to object, and asked the case second defendant as the Crown was to cand over for a week until the satisfied that he is not a national of requisition arrived, the defendants 'The accused, Chiu Pakenuld not then be held on the same Shan, was then aerardingly dis hail. He failed to see why he charged.

should he asked to help the Canton Government, by waiving his rights to question all irregularities.

w

NA Requisition From Canton. In proceeding with the against the first defendant, Wong Chung Chu, Mr. Sheldon told the Magistrate that as yet he had eived no requisition from Canton. He added that with the Court's ensent and that of the defending Counsel's, he would like to open his

The Magistrate said that Mr. Sheldon had no right to expect an undertaking from the defence.

Mr. Sheldon: Thea I would apply for an adjournment.

Whereupon Mr. Potter said "Here it is again. No explanation from

Honey For General Ohlang. On December 7th, Wong again instructed the oficer in charge of the Deposits, Loans and Rewit- tances Department to buy $200,000 Hong Kong currency to be remitted to General Chiang Kai-Shek.

This officer enfried out the in- struction but his efforts were only

· partially successful, as he could only procure 810,000 Hong Kong meney, He made a report to Wong that it would take several days to com. plete the purchase, and remarking that it would be too late. Wong in- structed the officer to take $700,000 "from the Reserve into Shameen in order to obtain a loan for the re- quisite amount..

Liberality.

On the same date Wong ordered |that: 8171,000 be paid to him for the purpose of a bonus to the staff. Alnust immediately another order was given that similar sum be turned over

the staff to pay salaries for January in advance.

As regards these two sums the prosecution allege that the bonus. was never paid out and that some of the money supposedly for advance salaries was also withheld.

Can we 3r. Potter:

by tal what charge the order for payment of salaries falls under! Also we would like to be told where exactly is the salary, what is the salary,' and the salary of what, All this is necessary.

Mr. Sheldon: Nothing unfair will be done to your client if I can help

it.

Mr. Potter Not by you. I would like my friend to understand that anything I may say in this Court is impersonal. It is directly against your client the Clinton Govern- ment.

Mr. Lindsell: The Hong Kong Government. M. Sheldon repre- sents the Crown.

Mr. Patter So it has been ruled. But his lats client is the Chinese Geyernment.

Willing To Fay Off “Tannery Loan."

Continuing. Mr. Sheldon said that on December 25th, 2830,000 in silver coin- and $30,80 in Hong Kong currency were, paid out by the cashier on documents signed by Wong. In addition to this another "sum" of 193,000 was also paid out

by the internal Loan. Bureau of the Central Bank for the purpose of payit off National Debts

The fugitive (Wong) was also

against the subsidiary, coins taken said to have tried to secure inans

to Shameen and deposite with the National City Bank of New York

and the Hong Kong and Shanghai Banking Corporation. There were 20 cases containing $500,000 in coin in the Compradore Department of the National City Bank-cl York. Both banks, however, refuse to advance anything against the Chinese coins in the absence of instructions from their respective Hong Kong offices. Next day the specie was removed to the Hong Kong Bank, where. Mr. Dunnett, the manager, would only acropt, the custody of 145 cases.

There the fugitive negotiated with Mr. Chan Lim Chung, compradore of the Hong Kong Bunk, to buy from him 8500,000 Hong Kong rur rency. He also promised to wipe of the debt of $200,000 called the Tannery Loan" on which loan the brother of Mr. Chan Lim Chung was held responsible to the Hong Kong Bank,

With regard to the 60 cases of apecie which Mr. Dunnett refiased to accept, the fugitive was said to have asked the Compradore of the Hong Kong Bank to dispose of them and that their equivalent in Hong Kong money, amounting to 8180,632, be sent to the Bank of East Asia in Hong_Kong.

The land pas up for auction was New Kowloon Inland Lot No. 19, ase. This was not an irregular | Canton yet. The case is patently which is adjoining New Kowloon redure, he suggested, but never trumped up." M. Potter also drew

The Compradore of the Hong luland Lot No. 1000, Princetheless, he would like to have Mr. his Worship's attention to the fact Kong Bank at Shameen was given Potter's undertaking that exception that there had been more than one two slips the Grst related to an Edward Road.

would not be taken at a later stage. change in the Government in amount of 2118,233 to be remitted Mr. Potter said that the only re Canton during the last few months to one Chu San at the Bank of East mark he would make was that if and he prophesied that there were Aain at Hong Kong, and, the other there ever was a case which failed more changes to come.

related to $1,000 to be paid to Mr. under Section 8 of the Extradition After further argument, Mr. T. V. Soang at Shanghai. Ordinance, it was the ong now beheldon opened the case.

He would, there-

The area is 3,350 square feet, and the land was knocked down at the upset price, without any advance being made, the figure being 8,350, or $1 per square foot.

Messrs Hai Ka Ting, Hu Ka Swatow, by the way, is still beldi Pik and Ilu Ka Tsung, of 12. Con fore the Court.

naught Road Cental, were the purchasers.

by the Kwangsi troops.

The Reds appear to have failed in their attempt to set up Soviet Government In North ern Kwangtung but are still strong in the Heifung and the Lakfung Districts. In Kwangs the "Reds have destroyed many houses and murdered a number of inhabitants in Loketong, and Pingsbek but they have failed to gain any substantial ground anywhere.

POLITICS!

The senus Crown rental in respect of this Lot is 816, and in addition the purchaser has to pay

$25 for boundary mones required be doing this Lot, and 830 for the

t'rown Lease,

LI FUK LAM'S FORMER COMMAND RESTIVE.

(Wak Keung Po.)

*

THE WAR ON THE UNIONS (Wah Keung Pa.)

Canton merchants, in addition to It is reported that Tang In Wa, facing beal probletus, are also the present Commander-in-Chief of the 5th Army, has tendered his re watching developments in Nanking, Hankow, and Changeha. Should signation. Tang Sai Tsing, a Canton, General Chiang Kai Shek be able garrison commander, being appoint to extend his power over Cantoned to succeed him. The 5th Army- that would mean that his following ironically called the "Papersides and no General Li Tsai Bin's have been restored see the retire- would control the revenue of Kwangment of General Li Fuk Lam who Canton people consider had commanded them since the Re- tung.

founded. General Li's regime the lesser of publicar was the two evils. What Kwangiung losen may be Kwangsi's gain. The Cantonese have a strong influenee in Kwangs and a large number merchants last year enjoyed peace. ful and prosperous trade there. The. Kwang Administration is spending millions on public works, giving employment to decent work people, while the lazy and useless are sent to Kwangtung for military service.

The Province of Kwangsi expects to hold an industrial exhibition some time next autumn and is hoping for the operation of foreign mer- chants,

(Continued on next Column.)

The Chamber of Commerce at Canton has petitioned the Canton Government to dissolve the Union of Shop Employees. They say that any members of that Union are Communists and are trying to ruin business by perpetually increasing wages and decreasing working hours until all profits are swallowed up. The petition ended by saying that the Union is allowed to continue business at Canton would be ruined,

fire ask his Worship to exercise the authority vested in him by that Ordinance and discharge the defend

ant.

M Potter also reminded the Court that the defendant was rested on January 5th, obviously on information supplied by cognizant with the facts of the cave at Coston. It was, therefore, futile to suggest that the autho rities in Canton were acting under any difficulty which prevented the from putting the law int moti,

The Charges.

Eight Charges Withdrawn, At the afternoon hearing, Mr. There were, said counsel, 12 Sheldon informed the Court that. enunts of hureeny and embezzlement he would have to withdraw charges af funds belonging to the Central a to 10, and would only proceed Bank of China, and it would be with charges 1, 2 and 11: necessary for him to trace the history of that bank until the de fendants were placed in charge of the concern.

Dealing with the amount sent to Chu San, Mr. Sheldon said that the sum was duly forwarded by the Compradore of the Hong Kong Bank at Cunton through the Tak Wing Bank to the Wing Sang Bank here. A letter was also sent instructing the Tak Wing Bank to pay the money over to Chu San at the Bank of East Asia. The money intended drawn and is now held by Mr. Doyle of the Hong Kong and Shanghai

He also pointed out that there had the bank He left Canten some for Mr. T. V. Seong was not with-

been no attempt to explain the delas, He would like to know whe ther or not they (the Canton authorities) expected his Worship to wait upon then.

Mr. Potter also pointed out that the prosecution would re-arrest the defendant.

The Court's Dignity.

Bank at Shameen.

The Central Bank of China, Mr. Sheldon said, was founded by the late Dr. Sun Yat Sen in 1921 10 serves as the Treasury for the pry vinge of Kwangtung. Mi, T. V. Soong was the first governor of time later. About two years ago Generai Li Tani Hain came into power, and when he left Canton in

Chau Min The money for Chu San arrived November of last year, Cho was appointed Head of the here on January 5th, and on the Finance Department of the Kwang. same day a man calling himself Chu 'tong Province. Later a faction San went to the Tak Wing Bank headed by Generals Chang Fat Fui, Rad requested the money to be paid Wong Kie Cheong and Chan Kung over to the Bank of East Asia. The Pox, Nominated Chau Min Che, money was accordingly paid over, En reply, Mr. Sheldon said, that governor of the Central Bank. This bet later in the day, two fokis from the defendants were arrested less faction called themselves the Iron- the Bank of East Asia went back to the Tak Wing Bank and request than a month ago, and that extra sides." dition, was applied for less than a

Cho, after the recent ed them to remove the money Chau Min fortnight ago.

Extradition doe Red upheaval resigned, and it was saying, that there was a mistake ments, he said, had to pass through then the defendants were appointed somewhere and they did not want diplomatic channels and they moved to their respective positions. They to have the money in their bank. Prior to that Chu San and an very slowly, As he was willing to were only in office for three days

regime came other man went to the Bank of proceed with the case, he would when the Ironsides

East Asia, where Chu Sanns say that there had never been to an end on December 28th. case where such celerity was shown."

During the three days that they known to an employee there as Mr. Potter disagreed anying that were in power, they made arrange- Chu Tit San. He went to the Tele- his experience with similar cases ments to transfer certain monies to graphic Transfer Department and had been that the requisition had Shameen. Under the direction of signed an application for the money always came down promptly He Wong Chung Chu, the then Finance to be transferred to T. Y. Soong concluded by saying that the time Commisioner, 8030,000 in coin was at Shanghai He signed the appli

eation in the name of Chu Ban: had come for the Court to make a taken from Bank's Reserves to cur firra stand, and if this was not done tain foreign banks in Shumeen.

(Continued on page b.)

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