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TREASURY FRAUD

CLAIM.

CHIEF JUSTICE'S COMMENT ON

ADMITTED FACTS.

ISSUE FOR THE JURY.

WEDNESDAY, MAY 8, 1929.

It was indeed curious, that ander the system which they wore invited to regard as being infal lible, such occurrences did take place.

After recounting the changes in the routine, Mr. Jenkin said that now, whichever way Tsang On- wing turned, he was kept in check, although, auch checks did not exlet before, and it had been stated that the checks were no reflection on Tsang himself.

Mr. F. C. Jenkin yesterday out Hned the defence in the Govern

The Trick Suggestion. ment v. Hongkong Bank action when he occupied the whole day in

Mr. Jenkin then went on to deal his opening address. An outline with the possibility of the signa- was given of the evidence which tures having been obtained by a would be called on behalf of the trick, when he said he would deal Bank and at the close of the bear with the dates of the cheques ing yesterday Sir Henry Golian which were during the rush period expressed the view that the facts of the Treasury in 1927; the con- of the case were admitted and that duet of Treasury officials general the question was now one of lawly and other Government officers When the Court resumed after who were called into consultation; the tiffin adjournment, Mr. Jenkin the interview at the Bank: Mr. continued his addrasa with regard Grayburn's telephonic communica- to what he called the infallibility tion with Mr. Messer; the letters of the Treasury system in 1927. which passed between the Bank He pointed out that Mr. Messor's and Mr. Messer, and the charges and Mr. Black's evidence on the preferred against Tsang On-wing point was to the effect that it and Cheung Man-kuon, which were would be impossible for their eventually withdrawn without any signatures to have been obtained evidence being adduced. by a trick. It would be fair, ha continued, to test those gonoral statements of infallibility by cir cumstances that had emerged dur- ing the hearing,

Mr. Jenkin drew the jury's at tention to a very significant and important fact which was that there had only been produced three vouchers, while for the whole of the year thero might be as many as 10,000 cheques, With regard to one of those three vouchors there was the remarkable incident that a cheque had gone out of the Treasury without the signature of Mr. Messer. The cheque came back and Mr. Messer then signed it without checking the voucher.

continued,

Mr.

Mr. Jenkin Messer had denied that he him- self had ever entertained the pos- sibility of his signature having been obtained by a trick, but that it had been entertained generally by other people connected with the matter. Counsel went on to deal with what he described as the exhaustive search of vouchers. Ho said that every available vou- cher that could be found was sub- jocted to scrutiny for one purpose and only one purpose, and that was to find out if a "dud" voucher had been brought into use by the user of the signatures ao that the signa- tures could have been obtained.

Mr. Messer's View.

"I put it to you that on his own evidence, Mr. Messer must have

He would show the jury, on the signed that cheque blind in this evidence, that Mr. T. II. King him- sense, that he did not check itself entertained the view that the with a voucher."

Counaol continued it was re- markable that from the only three vouchers produced, they found that with regard to one of them there was an absolute departure, if not an entire ignoring, of the alleged Treasury infallibility. The cheque was in favour of the Captain Superintendent of Police and was dated December 27, 1928, which was the "rush" period of that year and was after the Trea- sury routine had been tightened up after the frauds,

Mr. Messer's Explanation. Mr. Messer had and that when he signed the cheque the vouchers were not beside him. They wore brought to him but they were not put upon his desk and he (Mr. Messer) himself had said that it was the "rush" period:

A brief consultation took place between Mr. Potter and Mr. Jen- kin, when the lattor stated that there were 20 vouchers instead of three, adding that 20 was a very small number as compared with the year's total.

He continued to ask what could have happened if Mr. Messer did not check that voucher? He had said it was not brought to him in routine and he did not therefore initial it. Mr. Jenkin suggested that Mr. Messer had olther signed the cheque blind or had relled on the fact that it had already gone through the hands of Mr. Black,

It must be patent, therefore, that the so-called infallibility of the Treasury routine, even after the tightening-up, was not so in- fallible as had been suggested.

He went on to refer to two other cheques, which he said, were in- dicative of the same kind of thing. One went out without Mr. Black's signature before the routine was altered and ho had told the Court that it was an oversight on his part. Mr. Jenkin reminded the jury that one change in the routine was that no cheques for amounts of over $600 were signed by Mr. Black until the payee arrived to get the cheque. Long after the tightening-t, on January 9, 1929, a cheque for over $500 went out and reached, the payce, although it was not signed by Mr. Black. The blame presumably had to be laid at the door of a shroff.

$ALESMAN ŞAM

[HEY, KIDS! THERE'S SAM

HOWDY AN' TH' BUNDLE

BUGGY AGAIN!

It was

signatures had been obtained by a trick and he would also show that that viow must have been hold by law officers of the Crown. Ho would show them that Mr. Messer himself hold that viow. very curious that well paid Gov- ernment servants should be going round looking through countlos8 vouchers when, if the cheques were absolute forgeries, they would never have been before either Mr. Black or Mr. Messer.

Mr. Jenkin asked the jury what would be the state of mind of a competent banker if Mr. Black and the others had left behind them a clear impression that Mr. Black's signature was declared to be a forgery? Would not auch banker have instituted immediate and the fullest enquiries with a view, if possible, to clearing up the matter? Did they believe that an honest banker, convinced that the signatures were repudiated, would not put pen to papor until the next morning to clear, the matter up?

Mr. Jenkin suggested that when the party left the Bank it was in the clear belief that so far as the Bank was concerned there was nothing to worry about because the signatures were genuine atid if there was anything wrong it would be found in the Treasury itself as the result of a piece of extremely tricky work.

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by a trick.

Letter from the Bank.. Mr. Jenkin raferred to the letter addressed to the Colonial Trea surer asking for confirmation of the balance at the bank and said The Charge Against Tuang. the letter was received after the Referring to the charge pre- interview arranged over the telo-ferred against Tsang Counsel said phone. Mr. Hegarty signed the it was settled by a law officer of letter and he would be a witness the Crown upon information laid for the defendants. It was writ-before him by the Deputy C.S.P. ten under the direction of Mr. who was in charge of the case at Grayburn who had been on the the time. The other side had been naked to admit that the charge was telephone with Mr. Messer,

law officer of the settled by a Crown and had done so, they did not say that Mr. King necessarily gave the law officer all the material facts or that Mr. King contemplated that that would be the only charge ultimately pre- ferred.

Hia Lordship asked whether Mr. Messer had disputed the converan. tlen in the Yeo case and Mr. Jan- kin said that he had not. Ho sald he was not led up to it.

Mr. Patter interjected that it would not have been evidence in the Yeo trial.

Mr. Jenkin said that the letters were not in use in the criminal trial and that he did not know of their existence.'

Hia

He asked Mr. Messer if he could aquaro that letter and in reply to questions by His Lordship said that the letter was written to con- firm a telephone message. Lordship said that his question was whether the letter was re- coived after the conversation. Mr. Jenkin quoted from the shorthand note which showed that Mr. Messer had referred to the telephone communication:

Counsel went on to say that he had tried his hardest to get Mr. Messer to agree with him that there was a rational explanation for the latter but he would not have it. Mr. Jenkin submitted that they never made their at titude clear and suggested that if they had made it clear the letter would not have been written.

Wanting in Frankness,

but

Other charges were in fact pro-. ferred. Tsang and Cheung were held on them for some twenty daya after which period the charges were withdrawn. The point with regard to the charges was that the sting of the allegations camo in the last two ines "uttering a Treasury cheque which was not in- tended to be eashed or presented for payment,"

If the document was an absolute forgery then it never went before Mr. Black or Mr. Messer at all, and therefore the intention of Mr. Messer or Mr. Black would never be in being. Thoy would not know anything about the cheque. It was only on the hy- pothesis that, they had been a party to the contract could their state of mind be at all relevant.

Trick Unknown,

Sir Henry Gollan asked Mr. Jenkin if he could indicate the nature of the trick which was sug- gested and said he had a note of three suggested by Counsel in his cross-examination.

Mr. Jenkin said he could not indicate what trick was performed. He had mentioned three ways

The Chief Justice: You quits which had occurred to him. frankly say you don't know what the trick was?

Mr. Jenkin: I do not know. Counsel went on to outline evi- state of mind he says he was in. dence which would be called and He agrees that he would have put said that the first Bank official it more bluntly if he had been re-seen by Mr. Black would say that nonsible for it but it was drafted Mr. Black did not state that the by Mr. Hazlerigg," continued cheque was a forgery. Mr. Proc-- tor would not deny that Mr. Black Counsel.

said something about three duda but he would say that he had no recollection of such an expression being used.

Mr. Tenkin quoted evidence given by Mr. Messer in cross-ex- amination, when he said he might have been wrong in his opinion and they might have been obtained by a trick. Taking the whole of the evidence, sald counsel, Mr. Messer did entertain some degroo "What would you expect Mr. of uncertainty in the view that Messer to do.en receipt of that the signatures were forgeries. letter? 1 put it to him and I think Counsel then went on to deal he agreed with me that his an with the interview at the Bank, swering letter was, to say the least of it, wanting in frankness and in- saying that every contemporaneous fact, particularly two important dieating indecision in Government letters, pointed to the fact that quarters or in the mind of the writer of the letter. It is incon- the view held by those presentceivable that he would have writ- at that meeting was that the sigten it himself if he was in the natures had been obtained by a trick. The letters, one from the Bank to the Treasury, and the other from the Treasury to the Bank, would indicate the attitudes of Mr. Messer and Mr. Grayburn, Mr. Jenkin continued that if Mr. Messer held the view which he said he did, that his signatures were forgerles, then he singularly failed to impress that on the Bank, Signatures Believed Genuine, Mr. Hegarty would be called and he would explain what took place at the Bank. He would say that on the evening of the 18th, there was a number of people round hia desk. The query was raised and the matter was gone into. Hegarty would say that Mr. Black never suggested at that interview that his signature was not on the cheques; that an the contrary Mr.

Continuing Mr. Jenkin anid Hegarty believed the signatures to bo all right and everybody there that Mr Messer had agreed that thought the signatures were gan- if he had written the letter he ulne, the Government auditors in-would have put the matter quite cluded. The party left the Bank frankly and left no question for to go to the Treasury in the be-doubt as to his position. lief that when the Treasury was letter, counsel suggested, made it reached the query would be found quite clear that there was indeci- to have arisen entirely from what sian in the Treasury as to whether was called a "mare's nest." the signatures had been obtained

Mr.

He invited the jury to share the view that when the letter wan drafted the man who drafted it could not say that the signatures were not genuine. There was nothing careful about the letter. it was not a lawyer's letter in the sense of thinking far aboad. It was a frank statement of the posi- tion of affairs, algned by the Colonial Treasurer, stating that the matter was under investiga

tion.

Sir Henry Gollan said the letter included the phrase "police inves- ligation" and suggested that might be termed "lawyereso."

Too Much Ballast

GOSH, HE'S FLYIN') (GEE, WHIZ, BUT THERE MUST BE A STRONG

LOW JUST WIND BUCKIN' ME - 1 CAN'T MAKE PHY LOOKEE HERE!

PIPE THE ANCHOR!

SPEED AT ALL!

BUNDLE

BUGGY

The

HEY, YOU, STEP

ON IT, WILL

YA?

Another witness: would state that Mr. Black sald his algnature appeared to be in order and Mr. Proctor would say that at the Treasury there was no statement that the signatures upon the cheques were forgeries.

At this point the Chief Justice said that it seemed to him that all the facts of the case were before the Court. Those upon which Mr. Jenkin based his caac appeared to be admitted and it seemed now to be a question of law. The ques tion now was of the relations be- tween customer and banker and the issue for the jury whether the cheques were forgeries or not. ✨

Some discussion followed, it being stated that the facts of the second defence of the Bank, that of negligence, were practically ad- mitted by the other side:

The case was adjourned until this morning.

Two

BLACK

CROWS

IN JAIL

Record No 5148

AT

ANDERSON'S

WORLD THEATRE

DOUGLAS S FAIRBANKS

The

THIEF of BAGDAD

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