1909-10-16 — Page 7

SATURDAY, OUTOBER 16, 1909,

THE BUTLER WRIGHTS to what I considered a failure on the part of the Corporation and the Bank to meet A contractual obligation. That was on TRIAL

a matter of a transfer of 25,000 at the T/T to of exchange for the day on August 20th last year. I held rury strongly that the Corporation, and the Bank were bound to transfer that amount at the T/T rate for the day under the terms of the contract, becsand it was a favourable rate.

THIRD DAY'S HEARING,

Defendant in the Box.

Mr Justice Lindsay Smith and the following jury-Mesura J. C. H. L. Smith,

These accounts were opened in the early And things ontinued that way down to part of 1909, I baliavo ?-Yea June 1800 Tas.

THE CHINA MAIL.

Supposing the cash balance shert had boun more than $13,000 what would be done I would have verided it, and paid it in

Did young a matter of fact at that time believe that any of those sums of $3,000, $13,000 or 1,000 were still due to the away No cortainly not not after I bad analysed the balance and proved it defendant scorrect.

On the question of exatange, said at first when he wanted Castort money he had to send notes by his alark to be cashed somewhere in the city, but he soon saw that that opened the door to back of control as he did not know what the market rate was. So he arranged for a transfer to be made by the bank manager from one.

difference in exchange. .“ recount to the other recording the actual

he had to pay out large sums in Canton currency from time to time. He told the manager that he wanted bham kept we that transfers could be readily made from one to another. After discussing the maidne the manager suggested that be should be given standing instructions and he would. atoh the marked and when oxchange was favourable he would food one noesunt with the other so that be would always have Asked what, was the state of his hentah funds, and would advise him from time in August of this year, dofundant aid he to time. He (Mr Wright) considered distinctly played out. He felt extreme these accounts were absolutely under his R. T. Matheson, W. E. Hi H. Dently unwell and not being very young ha own control and that he was the person and C. H. Reid-were occupied for the consulted two doctors, both of whom sug responsible for the monies there because he sas urged that be should go had acted vitra, sira. It would not be third day at the British Consular Court, ongested, and Friday, in the hearing of the Charges of way for a change as soon as he could. At possible to work matters any other way about that sime Mr Power, the a except by keeping thousands of dollars in embezzlemant preferred against Mr Wistant accountant, had told defendant his office safe, which he did not wish to do

official as there was no guard. to be there was

Mr Douglas pointed cut to defendant Could anybody else but you"draw on Butler Wright as chief accountant of the that

witness explained the secounts to Mr those accounts?- No On one ocassion that it was part of the case for the pro- Chinese soction of the Canton-Kowloon andit, and just before the auditar's arrival

Power, instructing him or the agatem and whon a payment was necessary and I was seention that he intended to abecond, and Railway. The auma said to have been om-

technicalition. He thought he had made down,at Hongkong the Bank allowed Mr saked him what he had to say to that, healed were 813,000, 85,000 and $4,000.

Mr E. A. M. Williams, from the office it quite clear enough to enable sny pro-Power to withdraw a sum of $5,000, bat. Defendant said he had no intention what- of Moears Lowe, Bingham and Mattlews, fessional auditors to proceed Witness when I came back the manager said I must ever of absconding. He had made up his thought the auditors would take at least regularise this by signing the cheque, as mind to take a change as he needed it and month. There was no need for witness to chartered neccentants, of Hongkong, contes months in the work, and he sharefore he could not accept any other signature hoped to be back again by the end of the tinued his evidenco. He stated that be considered that his absence for three weeks but mine.

give any detalled instepctions to the assist ant accountant as he only needed to parry on had been unable to find any statement in would not at all interfere with the saditors

his current duties. According to agreement the cash book showing whether the items being able to get on with their work

the assistant accountant and to set under eutered as paid were in Hongkong or Clause 7 of witness agreement dealt with the question of health, and he claimed

the instructions and onders of the chief ne Canton dollars.

ander is that he could abacat himself for say period not exceeding 30 days on the

countant and of nobody else? "He ought scors of ill-health. Witness sont in his

simply to have carried on his current dation. monies" was that I was not giver chance of medical certificats to the managing director,

"What I do object to, asid defecinct, together with an intimation that he was go

was arrosted and pillaried as a folon and Hongkong dollars there should be a balancing on leave. He did not think that sanotion to the Hongkong and Shanghai Bank, offering any explanation whatever, that I aborn to the credit of the cash book of was necessary. In the early part of August because there would be justification difference in exchango --Mr Wright should witsess spoke to his friends of his intention for any separate banking account after that brought back here, and that up to now I called on the manager of the have not been given a chance of explaining havo debited himself with the difference in of going on leave. There was no conceal dato. So

Do I understand you wors prepared to exchange in order to bring it down to czsment about it at all. Before he left, witness International Bank and sait to him, "I anything, such as to say "Have you got

called on the manager of the International am afraid I shall have to close my bank $9,000; can you produes it 1"

will have to; thought that stand by the Accounts Yes, if the books Bank, who asked him if the local currency account with you" and he said. Yes, I

Witness am afraid 1993 mid "I cannot help it; I were completed up to the end of September accaunt was to be continued. replied that he understood indeed it would I am sorry."

as the manager of the must do so; under the contract I have no I should certainly be prepared to stand by have to be so,

So I wars made of these particular books. Hongkong and Shanghai Bank at Canton option in the matter, because if it comes to them if any proper and intelligent audit had not yet seen his way to open a local notice I might be brought to book." currency account. In July witness had a got the balance that day, the 29th of June, conversation with Mr Grove and Mr Power and affected a transfer to the Hongkong it opened on the matter of removing to Tung Shan, and Shanghai Bank, because I wanted to and he was then told that on October 1st start in with the bank as soon as the offices and residences of the officials would be transferred there. It was for this reason that witness took stepe to In fact you have vot nudited this cash pack some of his goods. He would be book at all; it has not been touched 1-Itaway at least three weeks and he did has hoon referred to, if you call that not want to be rushed at the end, so he packed,, up his carios and other touching.

things so as to be ready to move down.

Supposing you took the cash book alone and added up the total dollars spent. and some wore paid in Canton dollars and not

atandard currency."

That is, the cash book as it stands is

incorrect - is incorrect.

Cross-examined by a Douglas-You

baro given it as your opinion toat this cash book you have referred to is absolutely

useless to an auditor? Yes.

As a matter of fact, yyu told us you had not in your audit used it at all?--I have ignored it.

Discarded it -Yes.

1

It has not been auditedIt has not He had been living in Mesars Arabold Karberg's dat. which was a fairly large eaw Mr Lorris

beer audited."

Then what transpired 1-We got notics that the Hongkong and Shanghai Bank were about to open a branch in Canton. It then became necessary when that was so for

me to transfer

all

I did not transfer the local currency account because the Bank did not open that day, and on July 1st I would need large sums of But I intended to money in Canton notes to send up to the district engineers. opened. close that account as soon as the new Bank

Subsequently were you able to open a local currency account On the day the Bank opened I had an interview with the manager and I asked him, if he was to. he would not touch local carrency until he had got some more experience.

Were you in a position to produco You had availablo cash for over 89,000 7-Yes, up to the day of my atrest.

the date of my 89,000 2-Yes, on arrest at Shanghai and arrival at Canton.

Replying to further questions, defendant said he could have accounted for alleged subject to an examination of the accounts, deficiencies by a single stroke of his pen, Cross-examined by the Crown Advocate Why did you keep an account at the laternational Bank when you knew it was ut vires to keep it anywhere else but at the Hongkong and Shanghai Bank? Because I considered putting it into that office safe or my pocket. I had to keep.

Questioned as to the sum of 821,000 odd one. Before he left of some of his start a local currency sccount, but he said Bank was the same as putting it in the

which defendant was previously charged with embezzling za proste on exchange, witness now said the loss on exchange up to the end of June was $27,836. Up to to that time Mr Butler Wright and cradited exchange with a sum of $24,038.09.

Asked if the figuros now were different

from what they were stated to be in the Court below, witness said they were now more complete.

with referance to disposing effects as the rooms he had been occupying were three or four times as large as those provided for him at Tung Shan.

Would the dining room furniture and so forth fill that bouse Well. If I put in my dining room furniture I should have had to stand outside. (Laughter).

Witness added that he garo instructions that the goods to be sold were to ruscha certain limit, as he did not want to sacrifice then. The three cases to be sent to Mr Wilk contained threw articles And on the completion of those figures of blackwood furniture, which he (witnes) "you are not-here to give evidence-in-up-had-wold to a third party...

Did you settle up your banking account port of this charge of $21,000 odd 1

loft Canton 7-No. don't understand you.

You know that it is not being proceeded with? - Yes.

I believe you mentioned to Mr Gróra that you were closing the account?Yea, when I made the transfer to the Hongkong and Shanghai Bank I found Mr Grove have conversation with Mr Power, and ing a I said to him I have just been across and closed the Hongkong entrancy account in the International Bank hy transferring the balance to the Hongkong and Shanghai Bank, and I will transfor the other account as soon as the Bank opeur here." Thon 1 had another conversation afterwards saying I had been to the manager who was not however then prepared to open a local continue as before.

the money somewhere.

Defendant admitted that he had iced circular to district engineers requiring them to show in different colames the difference in exchange.

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As regards these three particular amounts you are charged with misappro- what I call the railway accounts and place printing, you did take those sums out of

bell them into what I call your personal ae-Two Women, by Baronse d'Anethan, count 7-Yes, I admit these cheques were The Master-Sobemer, by Mra Ferg Camp

before heard Mr Kenney say there currency account and so things would drawn and transferred.

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I believe you aleo had a balanco in the Hongkong and Shanghai Baak; did you

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Are you owed any money on the Sha- meen or elsewhere Yes.

Replying to farther questions, vitness denied that the figures now said to seprenot 7-Yes. sent loss ou exchange were arrived at on a different basis from the amount originally mentioned.

Though yea hare discarded the mach book one of your chief accusations is that it does not say whether it is kopt in Hongkong and Canton dellars -That is not my chief point. If you would like my explanation ns to why I condemn the cash book I man gloo it

treated as Unnten dollars.

Did you make any attempt to collect these before you left -No: none what over.

About how much were you owed --I should say about $5,000, or it might

over.

One of these was I believe, by the Naral Officer to whom we base beard you paid a cheque --Yés.

Adebt for an identical amount to that chagua --Yes.

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are in two cases in the fat.

Now we will come to this particular transfer of 813,000 which is included in the charge. Do you know of that cheque

How was it that you, baving private Peter Homunculus, by Gilbert Cannan. means of your own, did not replace these True Tilds, by Q. (A. T. Quiller-Conch),

ghrist. December, and cae in February, 1909, sums? One was in September, one in Pretty Fanny's Way, by R. Murray Gi whereas the only thing anyone can convenging Children, by Mary E. Mann, sider is at all squaring up the account, Cardillac, by Robt Barr..

altogether, occurred A Wild Beauty, by Dick Donoras, on June 29th -I did: did not think it necessary immediately to

You have heard the evidence that it wasting out exchanet do it because I The Vulture's Prer, by Tyler Do Sair.

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for 813 000 1-Xos. transferred from the railway account to your account; what have you to say to that 1-I considered that the whole of the cash balance I was responsible for, and that

One of these actual sums-810,000 was whether I took that $15,000 out of one

paid That is so. pocket and put it in another or out of one put out at interest and was actually re Aad paid into, not accounts 1 or 8, drawer and put it into another, so long as I had $13,000 available (I did not ear mark any notes or coins) and was able to produce which I call the railway accounts, but into at any time the $13,000, it did not matter your own private Accquat, out of which it whether it was transferred from one account had not be drawn Yes, quite so.. to-another, because I regarded them all as my own accounts.

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was in your custody. Do you mean you thought you had a night to any monies in these accounts 7-Yen, so long as I had any equivalent som at my command.

Did you get so far in your audit as to ascertain whether the accounts of the mail-

His Honour-Do you masa you regarded way were kept in Hongkong or Canton

Have you recently bought any chins all the money as your own i-Oh, no air. dollars ?-The accounts of the railway are on commission for anybody at Home The money was in my custody. sapposed to be kept in Hongkong dollars. Yes; on the last day of the month I bought And therefore the cash book is in Hung-three spocial vasek, to be sent Home, for kong dollars -No; Hongkong dollars are

Have they beez sent Home -No. They These were not for yourself at all?—No. Witness went on to speak of leaving by the Tenyo Maru for Shanghai. He said he was not able to get down to book the pasanga himself, but a friend of his chose a berth for him, and he (witness) went down and paid his mousy at the shipping office.

You were arrested, I believe, on arrival at Shanghai ?—Yes, co arrival

If the cash book pere kept in the way you say, the balances would have to sppear

in two currsotics? No, cartainly not.

The balance in that case would be in Bong- kong dollars..

This concluded the case for the Crown THE DEFENCE."

Defendant then went into the box and

And the nharge then mentioned was gave evidence on oath. He stated that he, Yes. The specife sun mentioned was a qualified accountant to the Govern in the indictment was $13,000. ment of Tadin from 1870 to 1387. Then You know now that the charges aro he was deputy auditor for the subsidised 813,000, 85,000 and 84,000 7-Yes.

Government Mahratta railway from 1887 to 1880.

Defendant went on to explain in detail the railway. Referring to the cash book the system of account-keeping adopted on he said the amounts of balance at the end of each quarter were absolutely show

Questioned

to his private means defendant said he had large sums passing privately through his hands from time to Once he received a sum of $10,000 for expenses and commissieu in regard to a loan fotation and on another occasion be sold a third share of his interest in a patent medicine for dysentery named "Matherite,"

time.

'garded as, my accounts.

Borland The Crown Advocate was to the pay: Ashes of Passion by Mrs Coulson Kernahan. Kont June 20th am I to lerstand that this was an attempt to pay back

Sylvie and the Secretary, by Olivia Ramsey.

or an attempt to square op the sce counts 1-It was primarily the closure and its transfer en bor to the Hongkong of the International Bank account balance QUALIFIED ENGLISH CHEMISTS and Shanghai Bank, because the bank as in July, and I had no justification opening for continuing that account after the bank.DISPENSE PRESCRIPTIONS was opened here.

His Honour said he would like to know in simple terms how defendant ousidered kill these thres eums of $13,000, $5,900 and $4,000 ware paid back.

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Defendant said the repayments were not CHEM YSTS & DRUGGISTS made by any specific instances, bat by

HONGKONG.

-DAY & NIEZ Tetaphore : 402.

The charges against you are that you which bo patented last year, for this be utilisation of his privata fonds for railway 31, Queen's Road Central, got 88,500 paid in two or three sms. The purposes; and on balancing these on Janc After being two years Home on transferred funds out of the railway account remaining two shares were hia, and he 30th ho found that the money for which he into your private account. Will you just received income from these from time to was responsible was absolutely there. leave he was from the beginning of 1901 to tell us whether that is your way of looking time. Daring the last 18 months behind From that he found he had paid back all

that was required from him: 1907 chief accountant and deputy general at matters Wall when I came out there

Do you as a matter of fact make pay- STONE PASA Amaungi the Arterion Begay-He had was an account called the railway construo in fact had considerable privats means

thus had experience of railway-secounts Maritta a pers

His Bonour What do you maneca and for your d That was opened by a sum of $10,000, for 34 years. The salary he commanded on the first of these appointments was I believe T-Yes, $10,000. It was before behalf of the railway 3- Yes.

national Bank.

His Honour-Those are were words.

MASONICI

so that the jury can understand it.

Defendant-There is no specific repay-

At a Regular Convocation of the Naval ment of these suts, but I maintain that and Military Chapter, No. 302 8.0.

in the aggregato amounted repayment by me pie 30.000

balances world Hongkong, the following Companions WEID

Mr Douglas And for these cash pay. 500 Rupees a month, an the second 1.000 I arrived. It was operated on by the jointments the rouchers are taken in the

ordinary way-Yea Rupees and in West Africs £1,100 o Fear signature of the managing director and the

hayd etant according to the title.

and

24

years of ago and had a wife and six children | interpretation cf the railway agreement, as which you have made out of your private hot niye agrobis no good telling M. E. Companions A.U.D. Gondia and

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I believe the cash book will show that.. pass book on account of the railway --Yea

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this in generadalina. You must know I believe one cheque was for 846-Yes, that this is a most important part of your case. For your own sake tall as the details it was a sum of 946 which was balance of

Defendant (after perusing pass books) salary belonging to Mr Warmington if you can. If you can't, then say so.

I believe that was about the last thing-

am not in a position-to-say specifically you did before you left! Yes I found if

that this, that or the other item, amounting Scribe E. to $9,000, was repaid. Allora tery close Scribe N. Has there, as a matter of fact, been an was due to him and paid it. objection raised to keeping money in any Defendant, in further evidener, said and detailed examination of the records, Treasur other Bank 7-Yea, the managing director when it became necessary to transfer from I was satisfied that by the analysis of my Prine Soj. spoke

oke to me that he desired to have $100,000 the International Bank the whole of the balances on June 30th all monies due to Ben. Boj.- transferred to the Bank of the Board of funds into the Hongkong and Shanghai the railway had been paid back or vouchers Jun. Soj

Chancellor Paste and Communications and I spoke to Bank be ecruterised all the entries in the had been entered in the cash book.

Janitor the joint agents at Hongkong and they said former Bank and saw that a m

His Honour-Very well; I must leave it

who were at present in England. Before to opening that account or any account at commencing his "Tofas at Canton he was the International BankI read the agree ment to mean that no monies were to be instructed to proceed to Canton to inspect withdrawn from the Hongkong and Bhang the method of accounts adopted is regard bai Bank and deposited in the International to the northern failways. Ha was there or any other Bank. I always huld that for two months and looked all through the systems. Ca coming back he made his re- port and suggested certain changes which he thought would be desirable. were adopted. Asked who be considered from the terms of the loan agreemont, constituted the Best Office, defendant said

Who was responsible for the opening of a managing director, with whom was 1930- cinted an enginear-in-chief and a chief the accounts in the International Bank tween the balanes and the money defendant was concluded, and the case was accountant. He was in fact, told in They were opened by my own motion and that would have to be paid into the Honguljourned until to-day (Saturday), London that he was coming ont in on my own initiativo without reference to kong and Shanghai Bank, as it had pre- iously appeared in his private pass book, charge of the accounts with co-equal bellove the system of coquiring joint if not been refunded. He thought frat telegram from Makdes to the g authority,status and responsibility as the signature to cheques was found to be in at all of paying it back into the Biopo say that Lord French, represents engineer-in-chief. He therefore considered convenient Yes, absolutely unworkable, ternational Bank before the transfer of the

five of Moses Fauling and Co., apparently Did you require large cash some from hole balance to the Hongkong and Shang- himself part of the Head Offs. That was

time to time? Yes, oray month whom had Bank. He did this in respect of with a view to counterbalancing the Amuci work commasoed in excnent large sums of $4,000. Then it occurred to him that can proposals, is offered so provides lown many would be wanted. The contractors instead of paying out the other 9,000 is would come in with their bills and had to the same way it would be preferable to pay for the construction of the Chinchow be paid in ten or fifteen minutes. I could it direct in cash to Messrs Deacon and Co. Yaonanfu railw

the interpretation be gathered aim from the lown agreement,

And that was the view taken by the managing directof!—Yes.

Bat Mr Grove 7-1 am afraid Mr Grove did not accept the position.

You have had differences of opinions with

Mr Grove, haven't you 2--I think lately there has been an estrangement, an official estrangement I call it.

it could not be done under the agreement. $13,000, which now formed part of to the jury. And

anybody.

the charge, was the difference be-

At 4.10 p.m. the cross-examination of

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ORIMINAL SESSIONS.

The calender to econection with the criminal sessions, which open on Monday, and over which Mr Justico Gompertz will pasado, are somewhat hary and include:-

La Ng, murder and wounding with intant

Ip Sang. Li Yan, Ohan Wan, armed rob

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not keep them waiting two or three days an agents of the Bank. This he did, thus Straight had propose Back in socorating for the whole 313,000. This

for

the joint signature entirely ould he, to aloes and balance the so- 50,000,000.

And I understand it was

your initiative that these sccounts toounts up semn 30th. It did not, he

opened I did it entirely off my own bat considered, matter so far as the balance

to Lovest Tis.

Witness: further stated that as Messrs was concerned, whether the money requly. EHSUMATISM Descom and Co., the then agents of the ed by the engineer-in-chief or anybody MORE than nine out of every ten ons Hongkong sad Shanghai Bank, were unable else, so far as the total aggregate was con- of thematem are simply rheums to mupply him with funds which required he earned, were in any of the carse accounts. tiam of the muscles, dos to cold or dan p called on the manager of the International was, angested that he did this out of weather of chronic sharma In t Bank and id he would like to open two aber mot bat is made no Maluta case o intalmal tant la required, Account with him le his own name to dams to the engines to chief whether. The free spplication of Chamberlain's Pain Balm fall that is needed, and it is certain rence to transferring otal funds and be operated on by himself, one to be the money was in the International Bank forth 1-Wall, we have not agreed on cos called the Hongkong currency socount and the Hongkong and Bhannus Brat, of the

I think one was with refervocă | the other the Cautui curESKOY HOOORNÍ, S | Biakik London

Can you mention any particular matter on which you had differences of opinion in

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Over £2,000 PAID DAILY-TECİLAY."

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Shan Man, forgery: Chan Tu, Li Krong, Parg Hing, Ko Pic, Long Bang, kull

£1,000 POLICY FOR £2.0.8

good and murdero. Fan, Tai Lok, rosting The above monthly stolen goods, to wit shark fine.

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