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FOR SIX MONTHS
THE HONG KONG DAILY PRESS, TUESDAY, APRIL 23, 1929.
GOVERNMENT'S CLAIM
FOR $260,000.
HONG KONG AND SHANGHAI BANKING CORPORATION AND TREASURY. FRAUDS.
SEQUEL TO CARVALHO YEO CASE.
SPECIAL JURY EMPANELLED.
The civil case opened yesterday in the Supreme Court before the Chief Justice (Sir Henry Gollan, K.C., C.B.E.), in which the Attorney-General, on behalf of the Hong Kong Government, is suing the Hong Kong and Shanghai Banking Corporation for the re- crediting of a sum of 8260,407 as a sequel to the Treasury frauds for which Carvalho Yeo is still undergoing a long term of im- · prisonment,
It is contended by the Government that the cheques were forgeries and, therefore, payment by the bank was unauthorised.
The defence contend that the signatures are genuine but that even if the signatures were forged, the conduct of the Government was such that" it is estopped from alleging the forgery o account of negligence. The suggestion is put forward by the de- fence that the Government owed a dusty to safeguard the Bank from the risk of forgery on any cheques issued by the bank, and to warn them of any occurrence of an unusual or suspicious nature, and to maintain competent and dutiful servants for handling the cheque books. The bank contend that the Government failed in their duties, and thereby induced defendants to honour the cheques,
DEFENCE ENTER PLEAS OF NEGLIGENCE.
Counsel and solicitors are almost |On December 12, 1927, another identical with those in the Inat book of 600 cheques was also issued. November Criminal Sessions trialAt some time subsequent to the of Carvalhi Yeol
receipt of those books, 30 cheques
Mr. Potter and Mr. H. G. Sheldon were extracted from each book. (instructed by Mr. T. M. Hazlerigg, three of them being the forged MC.), who prosecuted at the cheques, which were taken from the Sessions, are for the Attorney-book of December 2
General.
Mr. Jenkin (who was instructed by Messra. Russ & Co. for the de- fence of Carvalho Yee) is now in structed by Messrs. Johnson, Stokes & Master for the Bank.
The Treasury serial numbers com- menced with one and continued until the end of the year, the fol- lowing year being again started with one. When a new book was sent to the Gaol for the alterations, it was necessary for the cash book clerk, Tsang On Wing, to refer to The following special jury was the book in current use for the last empanelled-Messrs. H. A. Lam-serial number in order to Be, able to mert (foreman). G. F. Haalam,write the following serial numbers S. M. Churn, B. Wong Tape, C. Linto the new book,
The Jury.
C. Sandes, Wong Ewong Tin, and R. M. Dyer.
.
Thirty Cheques Missing.
the book of December, from the When Tang On Wing received Bank, he followed that procedure and found that the last serial num-
16 beautiful new Red Seal recordings head the April list of Victor Records
Well-loved arias from the operes .. hymns ... an Unastal song of the Philippines ...and Bach's lovely and impressive Suite No. 2, played by Frederick Stock and the Chicago Symphony Orche tra. These are followed by fourteen popular songs of today, sung by the leading, headliners. Come in and enjoy a musical treat soon!
RED SEAL RECORDS
Trovatore—Di quella pira
(Tremble, Ye Tyrants) (Verdi) With Metropolitan Opera Chorus and Orchestra
Cavalleria Rusticana-Preludio o
Siciliana (Thy Lips Like Crimson Berries) (Mascagni)
GIOVANNI MARTINELLI
No. 8109, 12-inch
Norma Mira Norma-Part 1 and Part 2
(Hear Me, Norma) (Eellini) With Metropolitan Opera House Orchestra”. ROSA PONSELLE-MARION TELVA No. 8110, 12-inch
How Beautiful Upon the Mountains
(F. Flaxington Harker) The Holy City (Weatherly.
Stephen Adams)
MARION TALLEY
No. 6919, 12-inch
La Traviata-Coro delle Zingarella
(Chorus of Gypsies) (Verdi)
La Traviata-Coro dei Mattedori
(Chorus of Matadors) (Verdi)
METROPOLITAN OPEEL CHOKUS No. 4103, 10-inch
Lucrezia Borgia-Beladisi
(Drinking Song-It Is Better to Laugh) Alleluja (from the Motet Exeultate)
SIGRID ONEGİN
No. 1367, 10-inch Your Song from Parulise
(Brookton-Brown) Zamboanga (Song of the Philippines).
(Dyer-Cator) ESINALD WERRENHATST
No. 1369, 10inch
Suite No. 2, in B Minor Part 1
Overture (Bach)
Suite No. 2, in B Minor-Part 4
Polonaise Double-Minact--Badinario (Bach)
FREDERICE STOCK AND
CHICAGO STATHONY ORCHESTRA No. 6914, 12-inch Suite No. 2, in B Minor-Part 2 Overture (concluded) (Bach) Suite No. 2, in B Minor-Part 3
Rondeau-Sarabande-Bourrée (Bach) FREDERICK STOCK AND
POPULAR VOCAL
Lover, Come Back to Me
(from the musical comedy, The New Moon) One Kiss (from the musical comedy,
EVELYN HERBEST The New Moon)
No. 21833, 10-sh
Heart O' Mine
(from Warner Bros. picture, Noah's Ark) Old Timer
PAUL OLIVER ́· No. 21879, 10-inch
I'll Never Ask for More Give Your Little Baby Lots of Lovin'
AILEEN STANLET
No. 21874, 10-inch My Old Pal. With Guitar Daddy and Home with Guitar
No. 21757, 10-inch
JIMMIE RODGERS
CHICAGO SYMPHONY ORCHESTRA No. 6915, 12-inch
RECORDS
Yo Te Amo Means I Love You
(from the Paramount picture, The Wolf Song) Redskin (from the Paramount picture,
Redskin)
HELEN CLARK
No. 21878, 10-inch
The Spell of the Blues
Poor Punchinello (from the Patamount
pleture, Leeping the Loop).
FREDERICA VETTL
No. 21875, 10-inch
Gems from Blackbirds of 1928
I Can't Give You Anything But Love Dig a Diga Do1 Must Have That Man -Magnolia's Wedding Day
St. Louis Blues
WARRENT MILLS AND HIS BLUE SERENADERS No. 35962, 12-inch.
S. Moutrie & Co., Ltd.
Chater Road,
Mr. Wong Kwong Tin applied for exemption on the ground that he had sat in the Esinwah inquiry February and that the Coroner had ber of the previous book, November He was ably defended. by Mr. each bank the next day and sign promised his exemption for five
Was 8970. He then appreciated Jenkin when the whole case for the the exact signatures of the day be years. In March he received for the first time that there were Government was put before the fore I ventare to assert that no- summons to serve at Kowloon. And now, this month, he received a sum-only 670 cheques in that book be- Court, Nething was kept back so body in this Court could do what
cause the last serial number should that the Bank, had the whole of the Yeo did! mons again,
In reply to his Lordship Mr. Wong have been 900. His evidence would Government's case before them-a said that he had received no noti-be that he appreciated only that rather unusual position for
and he did not suspect that any litigant. Mr. Potter added that fication of exemption.
during the trial there was now sug criminal wrong had been done.
The jury would note with interest gestion as to how Mr. Messer and that he commenced the serial num- Mr. Binek were tricked, if they
were tricked. "' her in the new book of December z with 8971.
His Lordship expressed sympathy with Mr. Wong but, under the cir cumstances, he could not exempt him. The Coroner had no power to order exemption and could only re- port to his Lordship.
#
The Defences.
HONOUR FOR MR. HO KWONG.
FINANCIAL ADVISER TO YUNNAN GOVERNMENT.
We learn that Mr. Ho Kwong,
Potter said that it was put forward Turning to the defences, Mr. by the Bank, in addition to a denial of forgery, that there was alleged who is prominently associated with force: In law, assuming that the local branch of Messrs. E. D the allegation was true, then any Sassoon & Company, has been ap The allegations of negligence con- evidence on that point put forward tained in the statement of defence by the bank would be inadmissable pointed Honorary Financial and. Mr. Potter said that the action because it had meant a duplication given by witnesses for the Govern- tract of any kind on the part. of Government.!'
In opening the case for Crown. of the extraction of the cheques were based solely on the evidence because there was no special con- Industrial Adviser to the Yunnanese concerned certain alleged forged of treasury serial numbers. The ment in cross-examipation in the the Government with regard to its cheques and the Government was missing cheques had been number-criminal case. claiming that three cheques had ed and as the numbering had been The defence in the criminal
Government account.
Banker and Customer.
oured.
that
An interesting matter arose out
Teang's Position.
Counsel mentioned examples of there was
take.
aneat.
The news was brought to Hong, transactions with the bank.
"Therefore," declared Mr. Potter Kong by Mr. Li Chiu Yuen, Chief been wrongfully debited to the carried on, duplication of the miss case WES permitted, to examine warmly."this allegation is of sup- Advisory Councillor of the Yun- ing numbers had occurred. It every Government cheque in the reme importance to everybody in anese Government, who arrived seemed to him that if Tsang On bank signed by Mr. Messer and the Colony with an account with here on Sunday from Yunnan vid Mr. Potter continued that for Wing had appreciated that the Mr. Black, the only limitation being the Hong Kong and Shanghai Bank Haiphong. Mr. Li called on Mr. many years past the relationship cheques had been wrongfully stolen. that a representative of the Tres-ing Corporation! I don't think the Kwong yesterday and harded existing between the Bank and the out of the books, he would not have sury should be present and that directors really appreciate what him en official letter. of appoint Government had been
followed on with the numbering, as if any cheque was taken away, its their defence means! If my office boy of
Mr. Ho Kwong has agreed to There had he would be the first person to get number should be given. banker and customer.
steals a cheque froth my book he is been no special contract of any into trouble when it was discover-
Counsel did not think there had undutiful and. I am liable for the accept the appointment. Last year, been any criminal case kind.
where full amount he may put on the Marshal Chau Sai Sing of the The procedure was that ed. cheques, drawn on that account, by
greater facilities had been given by cheque if he succeeds in cashing Kweichow Provincial Government,
offered Mr. Ho Kwong & similar" the Treasury, were signed by Mr. The jury might think he, counsel, the Crown to the defence.
it! That is not the law! Mel. Messer and Mr. T. Black, was defending Tsang. I am going Mr. Messer and Mr. Black would Again, the paramoant obliga appointment in Kweichow Province, otherwise they would not be honto defend him in this case, as I swear that the signatures on the tion upon the bank is that they which appointment was also as
defended him in another case. The disputed cheques were not theirs. can only debit my account on a cepted.
Mr. Ho Kwong is chairman of Early in January, 1928, three Government is going to stand by Mr. Potter proceeded to deal with cheque bearing my signature In cheques were presented to the Teang On Wing. The Government the question of the signature of no other circumstances am I respon the Twenty-four Trades Merchants” Bank in the ordinary manner. They believed the true position was that the cheques and said that the whole sible for any money drawn from my Guild of Hong Kong and chairman of the Hong Kong Sugar Merchants were accepted by the Bank and Tsang had no hand or part in the matter rested on truth. Truth account.".
would be the deciding factor, for Mr. Potter further contended that Guild. He is also a member of the debited against the account of the swindle.' Government. The cheques were:
no question of a mis it was the duty of the bank to Court of the Hong Kong University appoint competent and dutiful and is on the Committee, of many (1) on January 3, a cheque was duplications · of Treasury serial drawn in favour of Messrs. Katz number: The Katz & Co cheque per te ed his opening ad- cheques. No such duty existed so ago he was the Chairman of the After the tiffin adjournment, Mr. servants to supervise customers public organisations. A few years & Co.. for 866,965.33; (2) on January was numbered 9855, and there was dress, and suggested to the jury far as the customer was concerned. 4. a cheque payable to Messrs. Mina genuine cheque bearing that num
The hearing was adjourned until Tak & Co., for $78,300.41 (3) on
ber in favour of the Hong Kong certain differences noted by com- January 6 a cheque drawn in Excavation and Pile Driving Comparing real and alleged forged 10.30 this morning.
to cheques purported bear the favour of Messrs. Man Lee & Co., pany for $2,000. The Min Tak & signature of Mr. Messer. He point- for $95,142.19,
Co., cheque was numbered 9551, n. All those cheques, said Mr. genuine cheque bearing that number Potter, purported to have been being in favour of Messrs. Bradley signed by Mr. Messer and Mr. Co. for $225. The number of the Black. The bodies of the cheques third alleged, forgery, No. 9542, had purported to be in the handwriting a counterpart in a cheque drawn in of a Treasury clerk, Tsang On favour of Chau Fat for 8613.3. Wing, whose duty it was to fill in the bodies of cheques.
A. Familiar Hame-Carvalho Yeo.
If the signatures are not those Nanking, April 19:-The Execu The Crown's case was, however, Mr. Potter went on to say that that both the signatures and the the cheques were presented by a of the customer, then the customer tive Yuan in a petition to the State bodies of the cheques were forgeries man whose name was no doubt cannot be held responsible for the Council, recommends that Chen EMPLOYMENT STATISTICS
Wear Lin, the Chinese aviator who
GIVEN BY JAPAN. and the Crown would, in fact, familiar to the jury, Carvalho Yea. debit" declared Mr. Potter.
With regard to Yeo," he went is now Bying in a monoplane from prove them to be forgeries,
He joined the Treasury on Septem-
Tokyo, April 19:-According to ber 1, 1990. He was in charge of on, I don't know whether he Europe across the continent to forged the cheques. The special China, be publicly commended for the water rate collection books.
It would have been easy for the jury in the criminal case held him his skill and unique hchievement investigations made by the Central Intelligence Office, men, who offered to be not guilty of forgery but upon his arrival in China.
to labour exchanges The provincial governments of positions' Government to have brought an guilty of uttering cheques-known action against the Baule previously to be forged. I will show you that Kwangtung, Hunan Hupeh, Kiang throughout the country during last The Government did not do that, this man was aigning different ei, Anhwei, Chekiang and Kiangsu month, numbered 74,962 in all, those however, deciding that before civil signatures in different handwriting are being instructed to make ap-who applied for employment totall proceedings were taken the wrong right under the nose of a bank propriate preparations for the weled 73,576, of whom 21,533 men secur- doer should be brought to justice.
clerk at different times.
come of the airman during his fighted employment, while those who After remarking that 75 per cent. Eventually Yeo was arrested in "What individual member of the to Nanking through the various offered positions to day-labourers, during last month, numbered of the facts were admitted, Mr. Shanghai, brought down to Hongjury could open accounts at three, provinces.
It is understood that Mr. Chen 370,307," and those who applied for Potter said that" on November 2, Kong and was found guilty of utter different banks signing Bill Jones, 1927, a book of 600 cheques was ing documenta knowing them to John Smith, and Tom Robin has already arrived in South jobs, 414,700 of whom 370,033 secur-
Ted jobs. issued by the Bank to the Treasury, have been forged.
son respectively and then go to Eastern Asia,
A Simple Issue." The amounts of the three chequer 'totalled over $250,000, but, in fact, they had every reason hope that large amount of that money would eventually be recovered.
It was a simple issue for the jury they had to decide whether or not the cheques were forged.
Tang Wah Hospital and of the Chinese Club.. Mr. Ho Kwong had also served on the committee of the Chinese Chamber of Commerce" for many years and was once the Vice. President of that body. His resig nation from the Executive Com- mittee of the Chamber was only announced a few days ago. FROM EUROPE TO CHINA We learn that, Mr. Ho Kwong will shortly pay a visit to both Yuanaa and Kwelchow.
ense RECOGNITION FOR CHINESE
d out that angularity varied con- siderably and only in one among 3,000 cheques examined did the genuine signature bear any slight resemblance to the alleged forged signature, and, even in that. case, there were differences in other directions.
AVIATOR.
*