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THE HONG KONG DAILY PRESS. WEDNESDAY,
THE HONG KONG & SHANGHAI
BANK'S DEFENCE.
MR. JENKIN CRITICISES TSANG'S SILENCE.
"CURIOUS INCIDENTS" ANALYSED IN COUNSEL'S OPENING.
r
CHIEF JUSTICE'S EFFORTS TO SHORTEN THE CASE.
Mr. F. C. Joakin opened the defence yesterday before the Chief Justice (Bir Henry Gollan) The Attorney- and a special jury in the Supreme Court in the Bank versus Government case. General, on behalf of the Colonial Treasury, is suing the Hong Kong and Shanghai Banking Oor- poration for the re-crediting of $260,000 which was debited against the Government's account by reason of the Carvalho Yeo trands.
The chief points of the defence are that the signatures on the cheques were not forged, and alternatively, if the cheques were indeed forged, then the Government is estopped, by reason of negligence, from any claim against the Bank.
'DEPLORABLE STATE OF AFFAIRS."
Mr. Rodriques, an accountant of Tsang to speak? How could Teang's the Instone Banking Corporation, silence on that occasion be squared
with his claimed,innoence t gave "evidence of Yeo's banking transactions with the Corporation and said that one of the three cheques forming the subject of the action was passed through that baak.
On the same alternoon there was a discussion in the Treasury amongst the people most concerned. The very book which Toang knew had an altered cover was produced but Tsang did not say a word. How could his silence on that oc casion be accounted for?
Tsang's Silence.
י'ד
honest subordinates to go through How was it possible for two the farco of letting Mr. Black and
Mr. Messer know absolutely no-
In the course of his opening for the defence, Mr. Jenkin said the Bank were not resisting the Gov. ernment's claim from any motives of bad feeling, nor because the sum claimed was large one. The Bank officials; from the first, had thing about this, letting Mr. Black definitely held that the signatures go off to the bank without saying on the cheques were genuine. If, in the course of the case, there had a word, letting Mr. Black find out to light anything in the at the bank that the cheques were nature of a deplorable state of missing when Tsang had known all about it since December 207 How affairs at the Treasury at material could that be squared with honesty↑ times, the Bank regretted it as much as anybody. Referring to the asked counsel.
come
criminal trial of Yeo, counsel said:
that because he was found guilty of uttering three forged cheques it did not mean to say that the tribunal ho found him guilty of forging the signatures, or that the signatures were of necessity forged.
"Dally Press" Headline. "It is not without importance," went on Mr. Jenkin, "that these. occurrences should happen after the new routine aptly described by Daily Press headline as Locking the Stable Door" was adopted.'
Tang is now checked, fore and aft, and whichever way he turns Books which was formerly left lying about during the tiffin hour are now locked away and every cheque, when it is signed, is accompanied by the cash book."'
Dealing with the possibilities of obtaining the signatures of Mr. trick, counsel asked the jury to Messer and Mr. Black by means of bear in mind the fact that the oc- of the year known as the "rush" currences took place at that time
period.
COLONY'S WATER SUPPLY.
CAINS FROM RECENT RAIN.
HONG KONG WATER WORKS
The total storage in the island reservoirs on the morning of Mon- day, May 8, amounted to. 311.72 million gallons shewing a decrease of 1554 million gallons during the past week.
The week's consumption amount. ed to 33.03 million gallons, which includes 1.78 million gallons brought across the harbour from Kowloon to the tanks on the Water Front, and 30 from the Taikoo Water Works,
Three or four days' storage has been gained from the recent rains. KOWLOON WATER WORKS. The total storage in the mainland reservoirs on the morning of Man day. May 6, amounted to million gallons, shewing an increase of 4.31 million gallons during the past week.
121.68
MAY 8, 1929.
K.O.S.B. COURT MARTIAL.
CLERKS APPOINTED TO P.R.1.
QUESTIONS BY DEFENCE.
That an appointment to a position not referred to in King's Regula- tions is not an "official appointment from the point of view of military law, was the gist of an argument by Mr. D. L. Strellett, defending Corporal Charica Hendry, 5.0.8.B.,. at yesterday's proceedings of the District Court Martial which is in- vestigating the alleged embezzling of $1,300 by the prisoner while he was working as clerk to the Pre- sident of the Regimental Institute
in 1999.
Mr. RA. Wadeson (prosecuting for Capt. Perfect, K.O.S.B.) con- tinued his examination-in-chief of Major G. M. Ogilvy, President of the Regimental Institute until November last year when he handed over to Major Lake."
Payments and Missing Entries,
The result of examination of books kept by the accused was given by Major Ogilvy. With s said that he calculated that pay
menta amounting to 8990.60 appenr- The week's consumption including ed in the billiard book for the supplies to Water Boats and Hong period January to July, but in the general account book of the P.R.I Kong totals 27.17 million gallons. he found entries only for $158.60 About 9 days' storage has therefore for Murray Barracks. Witness con- fall." been gained from last week's rain-sidered that the whole of the 8229.60 should have appeared in the ac- count.
FORGED BANKNOTES
TRAFFIC.
SEVERAL ARRESTS ON MONDAY.
11
The next point to be considered
officials and the Government officers was the conduct of the Treasury
called into consultation by the On the afternoon "of Treasury. held generally by January 18, 1928, the opinion was
On Monday, the Police arrested Government three men and one woman who are of the afternoon there was officers that the signatures were believed to be connected with a inquiry, going on regarding &
genuine. Mr. Messer instructed the ring of banknote, traffickers. quarter of a million dollars. Would Audit Department to institute a
Through a considerable portion
the jury not expect Tsang to check to find out if the signatures
I can now throw the fullest. light
were obtained a very startling upon this matter. I knew that the book was thirty cheques short. I hypothesis in a well-ordered depart Jury to Decide Forgery Issue.
forgot to mention it or thought ment. That hypothesis was held by heads of departments and Mr. His Lordship reminded the jury that it was not of sufficient import King and the police department at, this stage that they would have jance but now the matter has come
held the same view. to decide on their own responsibility to a head and the preceding book on the facts as given in the present is also thirty cheques short." It case whether the signatures were was not until Mr. Messer had him- forged or not.
solf made the discovery that Tsang made a statement.
Resuming. Counsel said that if the bodies of the cheques were in the handwriting of Tsang On Wing then he was in the frauds, and he would put it to them that if Tsang. was in it he had only one purpose and that was to betray the trust which was placed in him by his superior officers, for the purpose of obtaining the signatures by a trick.
Was it not rather curious that when he did condescend to speak that he gave his information piece meal? He did not mention that the covers had been altered.
t
Two Minor Issues. The two letters which passed be- tween the Treasury and the Bank were two minor isssue, although, they formed part and parcel of a If Mr. Messer much greater issue. heid any deänite view with regard to the signature on the cheque, be failed signally to express it. Mr.
then seen
to
The watchfulness of a Chinese detective led to the arrests. A woman was seen to tender a note at a money changer's shop, but the note was refused. The woman was changer's and talk with two men standing some distance away. A Chinese detective who saw this, thought it was time to move, and of a called in the assistance
arrest the uniformed officer to three persons.
leave the money
✡
Later, the police raided Chinese boarding house where they found a quantity of banknotes pur porting to be issued by the China
Mr. Jenkin went on to say that Black had said that he was sent to Bank, the South Sea Bank"
The
arrested
will'
Witness went through nine re- ceipts signed by accused and gave evidence of incorrect entries in cer- tain months under the "by-products account." There were also three choques which were not entered anywhere, but there were entries for corresponding amounts in the
by-product" book.
12
Witness agreed with Mr. Strellett duties connected with keeping ac in cross-examination that if the
counts by the President of the Institute were left to any other person. the President would still be responsible.
King's Regulations Cited.
Regulation section 255 and put it to the witness that the appointments mentioned therein wore official ap- pointments recognised by Army Establishments and. there were certain recognised official duties to perform; that the appointment of a clerk to the P.R.I was not an appointment or in other words that the clerk's-appointment was not an official one. Witness stated that a clerk, to be employed in the P.R.I, was appointed regimentally.
Mr. Strellett referred to King's
to
it would have been interesting to the bank to get the cheques and and other imaginary institutions. hear what Cheung Man Kan would was given instructions to say no-
persons
Witness was questioned regarding have said but he had not been call- thing about them. If he had obey probably be charged this morning. KR. 1888 and rules and regulations: ed. It would also have been inter-ed these instructions he would not
governing Regimental Institutes, and he said that a booklet placed esting to hear Shih Yee On, upon have been drawn into any discus-
before him referred
the whose desk one of the cheque book sion. Yet he has told the Court covers was found.
that as soon as he saw the cheques way we lawyers write when we do.A.A.FL
Any other rules you know off i- he said, "That is not Tsang's hand not wish to commit ourselves.
(Laughter.) Mr. Messer has agreed No. writing.".
Counsel contended that he never that he would have put the posi-As far as your own office is coo- said any such thing at the bank, tion much more fully and would cerned that is the only book 1-
what was Yes. nor had it ever been said. Would have left no doubt as
Is there anything about the up- he, from a business point of view, the position had he written the have gone to the bank and said letter. The letter makes it quite pointment of clerk for F.RI. 7-
a great state No. nothing about a wrong entry in the clear that there was pass book if he had not received of indecision in the Treasury De explicit instructions? he asked. partiment as to whether or not the Was it not curious that, if he had signatures had been obtained by any doubt as to his signature, he fraud.
Mr. Messer and Mr. Black had both asserted that they never signed, the cheques for such large amounts at the time in question, but the answer of the defence was
Tsang On Wing searched the that they signed them through a waste paper baskets and every place trick, and he hoped to show con open to view for the cheque bock clusively that that possibility was cover. Then he found it lying upon held and maintained generally by a shelf of Shih's desk. The find- the Government and the Banking of the book was a curious in officials after the discovery.
cident, curious in the extreme. 'There was an alternative defence: that if the signatures were not genuine then the Government, by their negligence in failing to carry out the duty they owed to the Bank, to warm them of the abstraction of cheques, was estopped from setting up the claim that the cheques were forged.
The Chinese Brain.
were of no importance.
"Curious Incidents."
!"
Is there anything there either directly or by implication as to the
It would be the same as a clerk in duties of a clerk in the P.R.I. 1
any other office.
Mr.
Counsel then, asked the jury to
Mr. Fitzroy (judge advocate) consider the language of the charge against Tsang and Cheung when they interposed at this stage and asked were arrested. He suggested that it defending salicitor whether it really was unintelligible and suggested in-mattered if the appointment was decision and doubt as to the signa made by King's regulations.
The charge read: "With Strellett replied that it did, and if ture.
or that were so then the procedure uttering a Treasury cheque document not intended to be cashed would be different.
The or presented for payment." jury could not get away from the conclusion that the Government officials were in doubt as to whe- ther the signatures had been ob- tained by a trick or were forgeries.
His Lordship: Can you adam- brate the nature of the trick?
Counsel: I cannot.
." Saving Time. Mr. Jenkin then recommenced to review some of the evidence.
His Lordship: All these facts are before us sad I don't quite see what question you can ask the jury upon them, Mr. Jenkin.
Mr Potter: At least 80 per cent. of the facts were admitted, My Lord, as I said in my opening.
Mr. Jenkin: But
Cannot Convince the dourt. A discussion ensued during which Mr. Fitzroy asked if it was sug gested that the clerk was not pro- perly appointed. The accused was charged with embezzlement and misappropriation of money belong- ing to the P.R.I. He (Mr. Fitzroy) had no wish to hamper the defence, but he could not see that the point raised was relevant to the ease.
Mr. Strellett: May I convince the Court'
Mr. Fitzroy: The Court are cognisant of King's. Regulations." They are experts and know far more than I do. I do not see why you can convince them.
If the curious incidents which had arisen in connection with the writ ing were added to these facts there was only one conclusion to which they could come, suggested counsel should say nothing? That conclusion was that Tsang was "According to his evidence,' concerned in this matter. He was said Mr. Jenkin vehemently, as not a fool, anything but a fool, and soon as he saw young Swayne, and how could they square his failure to to him only, mark you, he said Mr. Messer, when asked as to perform his obvious daties to his that the handwriting in the body of the cheque was Also A forgery, what he thought would have been chiefs on those occasions! Tsang's duty when he found the If there can be a solution com- Asked why he did not mention this cover of the cheque book had been patible with the honesty of that at the previous proceedings he re altered, had spoken, and counsel man's silence, I, as a student of plied that it bad slipped his mind! did not know if he has spoken human nature should be extremely I will put Mr. Swayne in the wit cynically, as excuse for Tsang-the glad to hear it," said counsel. nesa box and he will say that if such Chinese brain. No. honest man
"Difficult to Check." a statement was made, he cannot could have failed to take the course
After the tiffin adjournmeat, recall having heard it." which, he was going to submit, counsel intimated that he would
A Mare's Nest, would be the obvious course. Tsang stress two points, viz., the pos- You will have to judge who is to had said he did not attach any in-sibility of obtaining the signatures believed-Mr. Black or the respor- portance to the incident, one of his by means of a trick and the insible officials at the bank, unless His Lordship: You say quite reasons being that blank cheques, fallibility" of the Treasury systems you do it on the grounds of all of frankly that you do not know how in 1927. Both Mr. Messer and Mr. them being mistaken. Io that the trick would have been done - Tsang did not speak to either, Block had stated that it was im judgment you will no doubt be very I do not know. Mr. Black or Mr. Messer, neither possible for anything in the nature much influenced by this matter. did he speak to the man who would of a trick to have happened, but Mr. Heggerty will be called to ex- take his (Tsang'a) place in the evidence of that kind was of a plain what took place at the bank event of him falling ill Between the two men was "the silence of the general, nature and was most dif-interview, on January 13 when
ficult to check
party were gathered around his desk, dead."
With regard to one of the very He will tell you that Mr. Black Taang's Letter Ovar Three Cents. few vouchers produced in court-did not repudiate his signature, but Could he have thought he had and it had to be borne in mind that on the contrary, believed it to made a mistake in the checking something like 10,000 were in use be all right. The party left the and bad left Mr. Messer signed for each year-the ovidence was that bank in the belief that it would be less than 600 cheques, with the a cheque had gone out of the found that the query had arisen
B merely because of cover numbers altered and initials Treasury without the signature of
His Lordahip: There is the ques- of a suspicion nature on the cover, Mr. Messer. There was a telephone handy and Mr. Black must have signed it Counsel then suggested that had tion of duty. There was no con- officials ready to sign any properly" blind" because Mr. Messer had the Treasury officials any doubt as tract, that is admitted.
checked the voucher.
Mr. Jenkin: No expressed con- drafted chit. Trang on one oces not
to the genuineness of the signaturés sion had written a long letter over cheque was dated December 20, on the cheque they would have tract.
His Lordship: A certain duty only
Turning to the question of ac a matter of three cents to the Bank. 1998, in the year when the Treasury taken immediate steps to instituto
arises simply out of the relation counts, Mr. Strellett naked witness Mr. Jenkin put it to them the routine had been radically tighten inquiries and would have put penari batween customer and bank whether he was aware that not" a second "accurrence, when the booked!
to paper the next morning and
All that the jury can state is to do single cash payment had been made What was the written to the bank, was again 30 cheques short, should His Lordship:
with the question of law. The issue to the bank by the Institute during operate in a man's mind in pre-amount of that cheque?
"Lawyereze;"
the period January to November before the jury is very simply ex Counsel: It was a cheque in cisely the opposite direction to which it operated in Tsang's. favour of the C.S.P. for $1,918. Counsel said that a letter signed pressed. It is not a matter of how last year. Witness replied be was
I can't put not.. Trang spoke, good English and Continuing, Counsel said there by the Colonial Treasurer was sent negligent Taang was
in to the bank the next day. It made to the jury, "Ought Tanng to have Answering other questions witness. could perfectly well have explained, were two other instances of all the circumstances to Mr. Messer, fallibility. Dao cheque, by an no mention of doubts as to the told?" At the same time, that said that the accused had definite but it was a very curious thing that oversight," went out from the genuineness of the signatures and does not shut out any comments you instructions from, him not to keep
wish to make, Mr. Jenkin.
more than 830 cash in hand. It was Mr. Messer only understood that Treasury without Mr. Black's signa was not a lawyer's letter."
Mr. Potter: The facts of nego permissible for the accused to Tsang wanted 60 cheques to finish ture, and another cheque went out His Lordship: What does it in-
ligence are very little disputed so keep more than that amount to pay the year. Did Tsang's actions, any wrong on January 9, 1929. Tais was dicate?
Counsel: It states that the we can leave them to Your Lord- an anticipated bill. Witness agreed of them, aquare with frankness an important point, not only be..
that he would have given permis That report, counsel submitted, was cause of the fact that the routing matter was under police investiga ship in order to save time.
Mr. Jenkin: I agree.
sion to keep more than the sum deliberately misleading.
had been" tightened" but because, tion.
His Lordship Is not that typical His Lordship: The majority of stipulated had he been given what Cheung came back from the bank also, the cheque was for over $500,
the facts are already proved or ad- seemed a reasonable explanation for, and made the astounding announce and was not signed by Mr. Black lawyerese 14
Counsel: It is perfectly honest, I mitted.
sa'doing. ment that the three cheques were Yet it reached the payee, and the in Tsang's writing. Would not blame was presumably laid at the My Lord, but is written in that The case was adjourned until this
morning. (Continued on next Column). that have been the comment for. door of the shroff
The
nest."
"mare's
•
Mr. Strellett was allowed to con- tinue and referred witness and the Court to K.R. 1157.
Mr. Fitzroy: That refers to public money.
Mr. Strellett: Well anticipated. Mr. Fitzroy: No, I say it on the
top.
Mr. Strellett (to withess): K.R.. 1187 applies to regimental funds?— It does
The bearing was adjourned until this morning.
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