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HONG KONG
THE HONG KONG DAILY PRESS WEDNESDAY,
“SUGAR KING" AND HIS CABLE BILLS.
TSANG FOOK EXPLAINS RELATIONS WITH IU PO LUN.
BANDMASTER WHO BROUGHT HIM BUSINESS.
NO EXPLANATION WHY HE CITED AS BANKER.
The case in which Mr. Kwik Djeon Yung who is known locally as the "Sugar King," claims 840,000 from Tsang Fook, proprietor of the Tsang Fook Piano Company, either as damages or as money received for the use of the plaintiff, was continued yesterday at the Supreme Court, before the Chief Justice, Sir Henry Gollan. The action arose out of the alleged dishonest practices of » elerk named lu Po Lan who was in plaintiff's employ. It's duty' was to pay the cable account is connection with plaintiff's business and for that purpose a deposit of $3,030 was made to the Great Northern Telegraph Company, and the Eastern Extension Telegraph Company.
When the cable bills came in at the beginning of each month, In was charged with the duty of making, out cheques to meet the debit notes from the two telegraph companies. He would then take the cheques to the manager of plaintiff's Brm for signature, and once, the cheques were signed it was Iu's duty to settle with the cable companies
This arrangement was made in 1993, but, it is alleged, I con- ceived the idea of robbing his employer by altering the debit notes. After increasing the amount on the debit notes he would make out cheques and take them to the manager for signature. These cheques were made out to the Chartered Bank, and instead of cashing them himself for the purpose of making payments, In was said to have taken them to Thang Fook, who paid these cheques into his own account making out cheques for equivalent amounts to Iu Po Lun.
This went on until May 1927, and twenty dheques, eighteen of which were "bearer" and two "ordered" cheques, had passed from the plaintiff's firm into Tsang Fook's account. The total amount of the fraud was said by plaintiffs to amount to 8120,000.. The case for the defence was opened yesterday, and it was stated the transactions, between Tsang Fook and Iu Po Lan had resulted in a loss to the former, of about 8200. In was described by the defence as a "Big Noise" in the Chinese musical circle of the Colony, and that the success of his business was largely attributed to Iu's influence among his numerous "musical" friends In Po Lun, according to his employer, was a clerk drawing a salary of only 850 a month, but the style in which he lived gave the defendant the impression that he was a man of affluence. Iu, it was said, gave the defendant to understand that he owned a big Buick ear and that he was not entirely unacquainted with the Exchange.
The defendant, Tsang Fook; under cross-examination, admitted that he had been a telegraph clerk, ship's carpenter sad a piano tuner before he started business on his own. The plantiff, Mr. Kwik Dieon Yung, is the principal of the Kiem Tjiang Han firm at No. 198, Wing Lok Street.. He is represented by Mr. Eldon Potter, K.C., and Mr.
MAY 9th, 1928.
The First Cheque. "That was the state of affairs until September 9th, 1923," Mr. Jenkin said. On that day I went into defendant's shop and asked for a statement of his account saying: that he would like to settle it. He also handed in a cheque for $4,198.78 and asked defendant to take whatever was owing from that. choque.. Taang Fook replied that he had not made up the account and could not say off hand what the actual amount was but he thought
it was about $500 or 8000. 'Defend- ant also said that he had not" got enough money in the bank, to pay In the balance on the cheque.
I was said to have replied that all he required at the moment was cheque for 81,900 and that Tsang Fook could give a post-dated. | cheque for the balance. Iu also gave defendant to understand that the cheque was paid to him by plaintiff firm in the way of reim- bursement, as it was his duty to buy things and to pay out accounts for the firm during the month, being reimbursed at the end of each month. He said that the. 81,200 which he needed at the mo ment was for making purchases for
the firm.
What Defendant. Observed. Continuing, Mr. Jenkin said that the defendant had observed at the time when the cheque was present. ed to him by In that it was for a large amount, that it was crossed, and made out to the Chartered Bank. He had asked Iu to explain why the cheque was drawn by the plaintiff firm and made out to the Chartered Bank. In replied that he knew that the defendant had as account with the Chartered Bang and he had purposely made the cheque out to that bank so that the defendant could pay it into his dwa account. Iù also said that the whole of the proceeds of the cheque belonged to him, as it represented money which he had spent on the firm's behalf.
Into Death's Door,
Mr. Jenkin then pointed out to his Lordship that no tribunal could say that the defendant had not exercised every reasonable care r that he had failed to make proper enquiries. His Lordship would also have to remember Mr. Bird's evidence who said that was not uncommon för cheques to be made out that way.
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Note Reduction in Prices.
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to
WOLK, CM.G.). CAPTAIN-SUPER-, INTENDENT OF POLICE]
Another point, Mr. Jenkin said,
Jack of All Trade. which went to establish the defen- Cross-examined by Mr. Potter, How Defendant's Business Grew.dant's bona fides was that he took defendant admitted that before he Continuing, Mr. Jenkin said that the cheque to the Chartered Bank started on his own business, he was Tsung Fook established himself in and paid. it in over the counter. for 2 years a clerk in the Eastern [GnDERS BY THE HOME ME 2 D. Q To do that with guilty knowledge Extension Telegraph Co. He had business as the Tiang Fook Piano was like walking into death's also heen in Europe and America Company in 1915. The business door," Mr. Jenkin added, for it for about 4 years. He went abroad was quite patent to anyone with to learn tuning pianos. He had H. G. Sheldon, instructed by Dr. | gradually grew and to-day the com-
a little knowledge of banking also been a ship's carpenter. E. Davidson, of Messrs. Hastings, pany has an office, factory and show methods, that there was nothing to Dennys and Bowley. The defend-room in the Wanchai district. prevent the bank from referring ant is Tsang Fock, proprietor of There are also offices and show the cheque to the drawer. the Tsang Fook Piano Co., Ice rooms in Ice House Street and it
House Street, and Mr. F. C. Jen kin, instructed by Messrs. Wilkin- son and Grist is conducting the case on his behalf. "
Before closing his case, Mr. Potter formally put in the defend- ant's bank pass book to establish that on the dates of the two order cheques, September 9th, 1923 and January 8th, 1998, the defendant had a eredit balance with his bank. ers apart from the proceeds of the two cheques It was therefore obvious that the proceeds of the two cheques would not be used to wipe out day debit balance.
was only a few days ago, that they took
over the premises vacated by Messra Hugh and Hough, Auctioneers.
Defendant was now engaged in the manufacture of pianos and the import, export and sale of all kinds of musicial instruments In 1815, not very long after the business was started, defendant met lu Pe Lun, and but for this unhappy case the meeting had very favourable results.
In A Bandmaster.
Defendant said that I had sold many musical goods for him to the Confucius Band, the Chinese Musi- cal Association and many musical frienda.
Trying To Be Smart,
H.E. The Governor's Departure.
A Sergeant and 10 Constables of the Chincac Co. to be detailed by" the 0.0. will report at Queen's" sharp on Wednesday, May 9th. Pier for patrol duty at 10.30 am.
Eight members of the Flying Squad will attend as an escort, and will report at Central Police. Station at 10.30 am sharp. ?.
Mr. Jenkin went on to say that the cheque tras duly passed by us to the credit of Teang Fook A he was a man of affluence and of bank and the amount was placed Mr. Potter: You still think that month elapsed and nothing happen wealth? Yes. ed, and during the course of that month, plaintiff's manager-h
Mr. Potter: Did the goods scld man who signed the cheque-bad frequently visited the defendant by lu anout to a large sum of and nothing was said abou, the money 1-I do not know what limit cheque. Therefore there
you place on large sums or small nothing which could have aroused
Training Part L.. the auspicions of the defendant and
His Lordship: New, don't try All recruita of the Chinese and no reasonable excuse had suggested to be too smart awer the que Indian Companies will parade at itself that the defendant should not large sum of money is--Well, not Central Police Station on Wednes take these cheques from Iu."
Wai
Counsel then went on to describe
sums,
.....
tion. Surely you know what a
a large sum.
Mr. Potter: I put it to you that day, May 9th, at 6.30 pm, sharp Chinese gentlemen to go selling Condon Drees: Multi it is very unusual for wealthy for Squad Drill under Sergeant
shop - goods on commission for a
Training Part E Mr. Potter: Can you give me the
The classes for iristcuction in
Yes.
how the subsequent cheques were In Po Lun was a man of great passed and against each one of influence in the Chinese musical them, the defendant was asked to world of the Colony. He was in wipe off a debt owing to him by fact a "big noise" among his many Iu.
The Two Ordered Okeques, musical friends. It was bandmas- ter of the Confucius Band, and His Lordship said that with regentleman who sold goods for you Inspector H. Paterson will be name of any other wealthy Chinese | Police Duties and Regulations under
THE DEFENCE OPENS...
president, secretary and bandmaster gard to the eighteen bearer chequeson commission. If you do not like of the Chinese Musical Association, which bore no endorsement by the to give their names in Court, you remmed at the Police Training Opening the case for the defence, It at once became apparent to defendant, that was one question, may write it down in a piece of Bchool (cornes of Nathan and Mr. Jenkin said that the principles Tang-Fook that it would be to his but the two ordered cheques which paper?-I can give you the name Prince Edward Roads, Kowloon) on upon which the caso had to be do. benefit to be on good termia with Iu bore defendant's endorsement was of one who recently sold for me. Thursday, May 10th, at 6 pm
Po Lun, who was not only a good another.
but I do not wish to give the name.
cided were whether or not the customer himself, but also in Mr. Jenkin said that he could Defendant was then asked to sharp. All members of the Chinese, defendant accepted the cheques introduced plenty of business to give answer to that except that write the name down. He did and Indian, and Flying Squad Com- good faith.. It was laid down in Tsang Fook from the two musical it went to show that Tsang Fook the paper was handed to his lord pales who have passed Part 1 law that if an act was deemed to associations and from his friends. was not guilty and was not work-ship, who mid that the defendant have been done in good faith, it Tsang Fook would readily admiting in collusion with Iu, because had written the name of a lady, and who have not yet passed Part was therefore done honestly. It that he courted the friendship of
if he was he would have asked In His Lordship naked Mr. Potter if II. must attend. Dress: Multi also did not matter whether or not Tu, and he would also admit that had been given in evidence by the ter replied that he had no wish to to obtain only bearer cheques. It he wanted the game, and Mr. Pot there was any negligence, for no the success of his business in those degree of negligence was sufficient
circumstances canis to the conclu- sion that the conduct of the taker was so grosa that it amounted to fraud. MART,
In Gives A Banquet,
Mr. Jenkin argued that before the Court could come to the conclusion
In 1825 the Ice House: Street stablishment was opened, and Iu that defendant should södied with the claim mate in this Po Luu gave a banquet in celebra action, his Lordship must first of tion of the occasion. The banquet all be convinced that Tang Fook was given at the Kam Ling Restaur had wilfully and fraudulently abant, West Point, and & large numit would have been perfectly stained from making enquiries. He bar of friends were invited.
Taing Fook appreciated all what would conclusively prove to his Lordship that the defendant in this Fu had done for him and consider case had made all the necessary med himself under great obligation quiries and was satisfied. The do to him. Whenever an occasion arose Jendant had in fact given more in for Tsang Fook to reciprocate Iu's cash or credit for goods supplied kindness, he never failed to do so. than he had actually received from
Special Patrol Duty:
The following Police Reservists wil report at No. 7 Police Station on Friday, May 11th, at 6.45 pm, sharp for special patrol duty at West Point P
Ten members of the Chinese Co. to be detailed by the 0.C. Dress: Uniform, cap with white cover belt (no frog), and trun- ebeonTM
Flying Squad. The weekly instructional patrol to saddle a person with bad faith arly days we largely due to Tu manager that whatever cheques In pry into the private affairs of unless the tribunal examining the Later on defendant came to know Pat before him, he would sig people who had nothing to do with of the Hong Kong Section will take
aftar varifying the amount with the case.
place on Thursday, May 10, Fall the sons of the plaintiff, Mr. the debit, notes.
In answer to further questions, in at Central Police Station at 5.15 Kwik. This gentleman was intro, duced by In and bought a piano me very much and it arises with rather surprised when the first
His Lordship: One thing puzzles defendant admitted that he was pm sharp, Dress: Khaki. from the defendante,
regard to the first cheque. Has Iu cheque was brought to him, and no banking account of his own?
Mr. Jenkin: Yes, he had.
that before that cheque was pre- His Lordship: Then why should sented Is had always settled his
account in cash, ". Tang Fook act as his banker fire Potter: In told you that Mr. Jenkin: That. I cannot tell he had the cheque made out in that you.
form to the Chartered Bank-be- His Lordship then remarked that cause it was your bank-Yea
Mr. Potter Can you suggest simple for Iu to have paid the any reason to My Lord why Iu Po cheques into his own account and Lun should make out & cheque in then draw out whatever money he the name of your bank so that you aceded to settle with Teang Fook could pay it in to, your account? Defendant In Witness Box, do not know. I asked him why The defendanty Tsang Fook, then he did not make the cheque ont Mr. Jenkin then went on to say went into the witness hoxe or all he said was that he knew I dealt either in my name or his own and that to the defendant In Po Lun roborated what his Counsel had had always appeared to be a said in his opening. Defendant with that bank, Many Transactions,
wealthy man. hu owned or appear then described how the various To further questions, defendant ( Rang ***Mr. Jenkin took the Court over ed to own a big Buick car and in cheques were paid in to him by said that he believed the cheque was May the mary transactions which the de- his conversation with Tanng Fook, In and concluded by saying given to Iu in the form of a ram on the range with their "evolvers, fendant had with In Po Lun I had said that he was not un Whatever my legal positions may bursement for making purchaser for" belt sand tafers promptly at the Several account, books,, cheques known to the Stock Exchange. be, I have not made cent out of the firm, and that he could not give hour state counterfoils and other documents From Iu's behaviour and mode of this transaction, and according to a reason as to why the cheque was
(Bgd.) W. KENT, A.S.P were produced, all of which showed living, defendant had never for a the figures in my book I have lost not made out in Tu's name. records of business done by In en moment, thought that he was only approximately 8200.3s popped The case was then adjourned
Adjutant, behalf of the defendant,
a 850 clerk
(Continued on rest. Volumn). | uptil te morrow morning."
Iu Po LinRAR NG
Four members of the Flying Squad to be detailed by the O.C. Dress: Khaki
The fortnightly revolver practice
Sharpshooters' Company.
Will
beld
ennedy Bond Wednesday, Members will assemble
Hong Kong, May 8th, 1923.