1929-05-14 — Page 1

Page

A

NEW 1929

GRAHAM-PAIGE·· SEDAN and TOURING MODELS

Touring from $2,300–Sedan from $2,550.

Sale Distributors for Hong Kong & South China:

KOTEGATE & CO. Pedder Building, 3rd floor. Telephones Č. 93 and C. 741.

The

China Mail

No. 27,178 HONG KONG

BANK PROCEDURE

LIABILITY OF A FORGED SIGNATURE

MUTUAL PROTECTION

Treasury Official Silent For Eight Days

LEGALITY OF BLANK PAPER

STABLISHED

1846

TUESDAY. MAY 14, 1929.

'HERMES' AEROPLANE MISHAP

FATAL MANOEUVRE

MACHINE OVERTURNS & FALLS INTO SEA

AIRMAN DROWNED

OKLAHOMA'S OIL

INCREASING THE STATE'S DAILY PRODUCTION

OFFICIAL ACTION

PRICE $3.00 Per Month.

BIG DEVELOPMENT IN AIR SERVICES

BRITISH PROGRESS

IMPORTANT EXTENSIONS BEING CONSIDERED

INDIA MAIL SUCCESS

Manageri

WOUND UP

"Your Eyes Are Safe With Us"

N. LAZARUS

Hong Kong's Only European Optician

Established Over Forty Years). Manager:--RALPH A. COOPER, Registered Optometrist by Canadian Govt. Exam. P.LO. (London)

(Personal Attention), · ·

CHINA SUGAR REFINERY CO., LIMITED

DISPOSAL OF ASSETS

www..com

FIGHTING IN EAST RIVER

SAMSHUI TAKEN SITUATION IN CANTON AGAIN PRECARIOUS

STILL IMMINENT ?

An extraordinary meeting was held this morning in the Board room of Mesars, Jardine Matheson &Co., Ltd., for the purpose of considering and if thought fit London, Yesterday, passing the following resolution. The situation in Canton, according Important extensions of Trans-to voluntarily wind up the busi- to the latest reports to hand, is none Continental Air Services will be an-ness of the China Sugar Refining too rosy. The Kwangsi forces are nounced in the summer time-table Company:

determined to make a firm stand, within the next few days.

"That Mr. Archibald Ritchie, and there are indications that after chartered accountant, the a brief respite, Canton is once again firm of Messrs. Lowe, Bingham in the throes of anxiety.

Oklahoma, Yesterday. The City's State Corporation Commission: has ordered the re- moval of all restrictions in connec- tion with the production of crude The report of an accident to a oll in Oklahoma, increasing the Fairey aeroplane belonging to maximum permitted in the produc- H.M.S. "Hermes" was received here tion of the State from 650,000 bar

It appeararets daily to 725,000.

The daily production of the state that the "Hermes" "had taken out the planes to Mirs Bay early yester- is estimated at only 715,000 barrels. day morning, and there they were-Heater.

Exercises RATTLESNAKE BITE on developing flying operations und let out to spread their wings.

Among the carried out was one in which the *planes were required to land on The the aircraft carrier's deck.

To-day is the fifteenth day of the Treasury Case. Prof. Shell-yesterday evering. shear who gave expert evidence for the Hong Kong and Shanghai Banking Corporation since last Wednesday, left the witness box only yesterday afternoon. He has been subjected to the most searching cross-examination by Mr. Eldon Potter, K.C., counsel for the Trea-

sury.

L

This morning Mr. H. G. Hegarty, acting Chief Accountant of the Bank, gave evidence. He was examined at some length by Mr. F. C. Jenkin in regard to the procedure adopted by the Bank.

TREASURY'S SUIT AGAINST BANK

Nothing Wrong

various

machine which met with disaster was at that time piloted by James Edmunds Fenton, and with him were Aircraftsmen F. T. Harding" and James Arthur George Wallace,

In making the landing the Fairey machine overshot the mark and fell into the water. She was picked up with some difficulty when it was Was mise- The interview concluded by Mr.) found that Wallace Dallin saying that nothing could be ing. The two other occupants were gained by remaining at the Bank uninjured.

Up to this morning, the body of and that probably the mistake could

The the missing aircraftsman had not be found in the Treasury. Bank was therefore under the im-been found, although a rigorous

was nothing search had been instituted. pression that there

The first witness called from the Bank was Mr. H. G. Heggarty. He was questioned at some great length by Mr. Jenkin with regard to the Bank. Witness procedure at the said that every cheque presented for payment was first posted to the ledger and then the signature of the drawer was cancelled by a European officer. With cheques drawn for $5,000 and over, the official making the cancellation would invariably der to get sign his full name across the signa-matter, the tures in cancellation, and cheques of under that amount would only be .cancelled by that officer's initials.

wrong with the three cheques and that there must have been a mistake in the Treasury. However, in or-

confirmation on the Bank wrote to the Treasury on January 19, to which they received a reply saying that the matter was the subject of Police investigation.

DUTCH FLYERS

THE HOLLAND-BATAVIA SERVICE

Colombo. Yesterday. The two Dutch seaplanes (en route for Batavia from Holland) have arrived at Trincomalee.

All cheques were printed in Eng-

Continuing, witness said that the land and with much underwriting.

The Dutch lying officer, who re- They all had serial numbers as a Bank felt happier on receipt of the

their letter. because they were under the cently was injured, has undergone protection to the Bank and

belief that the signatures were all an operation aboard the British clients.

right and that the Treasury was cruiser "Enterprise" at present at trying to solve the problem as to Trincomalee.-Reuter. how the cheques came written.

Blank Paper Legal Asked what he would do when in receipt of a blank piece of paper written out as a cheque, witress sald that legally the Bank would have to honour that piece of paper if the signature was all right. That, however, was a practice which the, Bank had always tried to discour age. Whenever a cheque was drawn in that form, the Bank would have to take additional precautions, such as finding out the names of the payee, etc. and with which Bank the cheque was cleared for payment.

By his Lordship: If it came as a bearer cheque, the paying out coun- ter would make enquiries from the

person receiving the money.

There were cases where one client made

use of another client's cheque, and in all those cases the the Bank had made enquiries from the person concerned asking them if such and such a cheque was given Circumstances like to so and 50. that. witness added, always entailed additional precaution, and the Bank had done their best to discourage the practice.

Asked to describe the routine fol- lowed in cases where a cheque had been stopped for payment, witness Baid that whenever notice to that effect was received, the number of the cheque to be stopped was writ- ten on the top of the page in the drawn ledger, and two red lines above and under it right across the page. That was done in order to draw attention, and when the cheque was presented, the person making the entry could not fail to have his attention drawn to it. He would then notify the client, and to pay- ment would be made out until they heard from their client.

cover

w

to

be

The First Intimation that thể "precautions. printed were The fire intimation that the Bank common.

had that there was something wrong Mr. Potter then asked witness if was when Mr. T. H. King, C.S.P., he had known of the fact that in went to the Bank and asked for a some Golf Clubs and other Clubs bundle of genuine cheques, saying they supplied cheque forms to mem- at the same time that the signatures hers who happened to lose $5 or so

Treasury were not those of the

in a game of golf.

Witnesa said that he did not, but officials.

Asked to what he would have done he was not disputing it. if the Bank had received a note from the Treasury saying that 30 cheques had been stolen from their cheque book, witness said that the usual routine of the Bank would

NEW YORK 200 OFFICIAL'S TRAGIC DEATH

AUTHORITY ON REPTILES

Working in conjunction with two lines of Europe, the British air chiefs are concentrating this year

one long-distance network.

From Croydon, which is the larg est air atation and

now one of the world's most elaborately equip ped termini, air liners will y this summer to every capital city in Europe.

of

& Matthews, be appointed to act as the liquidater of the com-

pany

A Rose

There are various explanations 'as · In conjunction with to why Kwangsi did not attack Messrs. Jardine, Matheson & beyond Shiuhing (a port between Company. Limitad, during the Wuchow and Canton) last week absence from the Colony of Mr. One of which was that Kwangsi had' John Fleming, C... one of the to defend its left flank against the originally appointed liquidators threat from Hunian. Eventually of the Company."

the Kwangsi forces even evacuated The above resolution was pro-from Shiuhing, but that was only

New York, Yesterday.

In preparation of plans for fur- Mr. Charles E. Snyder, the headther main linees, much valuable keeper of mammals and reptiles knowledge has been obtained from posed by Mr. A. H. Potts and a ruse to make the Kwaugtung at the New York Zoo, who was the first weeks of operation of the seconded by Mr. A. Piercy, which Forces withdraw. They did, and one of the best known authorities longest airway in the world, name was carried unanimously- on reptiles in the world, succumbly, the 5,000 miles flown weekly by ed to a bite from a rattlesnake the air line's of the Imperial Air-

snake-hunting. Reuter's

ways between London and India. while American Service.

This service is drawing greatly increased business each week.

CLOUDY

This morning's weather re- port states:

The trough of low pressure now extends from Indo-China to the Buxins, depressions being indicated' in each extre- mity. The anti-cyclone has weakened considerably, leaving a wedge of high pressure over Korea and the sea of Japan.

Local forecast:-E. winds, moderate; cloudy,

** THE LEAGUE

NORWAY'S LABOUR PARTY ADVOCATES WITHDRAWAL

MOTION DEFEATED

Oslo, Yesterday. After a prolonged debate, the rejected the Labour Storting Party motion demanding the with- Mr. Potter: We have heard a good drawal from the League of Na- so tions.

Fifty-five members voted deal of mutual protection and forth, but does the Bank concern with the Treasury's themselves

in favour of the motion-Reuter. !

Indian Mail

General Meeting'

the Kwangsi forces are back again and are pushing forward to Sam-

A general meeting was subse-shui. quently held for the purpose of adopting the statement of counts.

Samshui Captured

ac-

An authentie radio message from

under heavy fire.

In drawing reference to the ac-Samshui says that the Kwangtung On Saturday the air mail from counts, the Chairman, Mr. R. E. forces there are London to India reached a record Coxon, said that it would be too A wireless message received from H.M.S. "Moorhen" confirms figure of more than 16,000 thousand premature to aay exactly what the letters. The air mail from India, figures would be, as most of the the radio statement. The "Moor- hen" wirelessed to say that whilst consisting of 20,000 letters, which property still remained unsold. left Karachi on the previous Sun- The adoption of the accounts she was on her way from Wuchow to day, arrived at Croydon Aerodrome was proposed by Sir Robert Ho Samshui yesterday she was on Sunday. Although bad weather Tung, and seconded by Mr. H. H.peatedly fired upon. conditions were experienced in the Lennox. last few hundred miles, the mail was only 15 minutes late.

Sold at Good Prices

re-

It is to be presumed that the "Moorhen" was not fired upon pur-

The following extracts will be posely, by either side. A heavy Within the last. forthight the of interest to shareholders to engagement is going on and it is some stray amount of air-borne outgoing mail know how the liquidation is pro- quite probable that has been nearly double, as a rewardgressing.

bullets went in the direction of the

of consistent regularity. With one It will be observed that con- "Moorhen." Samshui was taken by exception, when it was taken off siderable progress has been made the Kwangal forces. Jate in covering the last 1,000 miles, in realising the assets of the Cum- Heavy fighting is also reported to the India air mail has arrived at pauy,

particularly

the

stocks, be in progress in the East River dis its destination a few minutes be which we are pleased to report tricts. Several commanders of the fore or after scheduled time have been sold at prices general-Second Division of the Kwangtung British Wireless Service.

WHO IS "AUDAX "

LONDON NEWSPAPER'S STATEMENT

ly higher than those ruling in forces are reported to have joined May, 1928. The anti-Japanese up with the Kwangsi forces. Gen- boycott caused shortage in eral Tang Yin-wah, of the 1st available sugar stocks throughout Kwangtung Division, it is alleged, China and was reflected In due has been captured and detained by course by a rise in prices.

his subordinates in Swatow. made The liquidators

every The report further states that effort to sell the refinery as a Swatow, Sheklung and Walchow are complete plant, and kept the ma- in the hands of the. Kwangsi troops GIVER OF PRINCELÝ GIFT

chinery intact for some months under the command of Colonels Li until extensive enquiry could be Mo-tze and Wan Yin-kiu. Large London, Yesterday. made with that abject. No offers numbers of troops are now in ocC12- "Audax" is, according to the for the complete plant being re-pation in Sheklung and are prepar- ceived, the disposal of the planting to march to Canton in a day or Director, Mr. George Roberts, of and demolition of the buildings two. Wimbledon.-Reuter.

were therefore decided upon. All the machinery has now been sold, A British Wirless message to but some $37,500 remain to be hand say:

"The Evening News" collected within the next few says that the respite there has been

brief. The Kwangsi forces this evening discloses the identity weeks.

attacking again and have captured of the gentleman who anonymously The Company's launch and feel Samshui. gave 100,000 guiness to King of lighters were sold at prices. In Shameen preparations are Edward's Hospital Fund as a thank considerably higher than their offering for King George's recovery. book values, as the latter had been being made to receive 120 to 159 men from the Somerset Light Infan- His identity has been veiled under heavily written down in previous

try from Hong Kong. the pseudonym of "Audax.” A few years.

serial numbers on the cheques, be- RE-DISCOUNT RATE Evening Standard" the company at once have been applied. They cause if you did, you will find that would be on the look out if any one the numbers had been duplicated in missing cheques should those three disputed cheques?-No. of the

their WAY 10. the Bank, we do not look at the Treasury's

would they

notify the serial numbers.

find

and

Treasury

in

INCREASED BY FEDERAL BANK BRANCH

AT MINNEAPOLIS

order to get Mr. Potter: That is the answer I You do not

Minneapolis, Yesterday. the person apprehended. Even if expected you to make.

The Federal Reserve Bank here the cheques were presented through concern yourselves with the Trea-

numbers to protect has increased its re-discount rate the clearing house, payment would sury's serial have been refused.

them. You do everything to protect from 4 to 5 per cent.-Reuter's The Bank had always expected | yourselves."

American Service. The foreman of the jury then in- that clients to whom cheque booka

had been issued would keep them terposed and asked witness if the in a safe place, and in cases of a Treasury had notified the Bank, at cheque having been stolen, to ary time in reference to the serial

numbers of their own. notify the Bank at once.

Cross-Examination

by Mr. Poller, Cross-examined witness said that the Bank had first consulted their solicitors on Jar uary 18

Witness replied that the Treasury had not.

Mr. Potter then asked if the broad basis between the bank and its clients was not that the Bank was liable for a forged signature.

Mr. Potter: You instructed your solicitor to retain Dr. Shellshear? Yes, as a matter of precaution. For the purpose to detect forgery you are certainly liable to your

or otherwise?--Yes, or otherwise.

At this stage witness turned to his Lordship and asked why should not the Bank retain Dr. Shallshear if they so desired?

His Lordship (to witness); If you pay out on a forged signature,

clients. That's the general prac- tico is it not?—Yes.

After Mr. Procter had given evi- dence the Court adjourned at 1.20 p.m. till to-morrow morning when His Lordship told witness not to counsel's addresses will begin. ask him questions.

Pen Pressure

when

an

яд

to must

different Was

pressure

Rainfall to 10 am. 0.36 înch 1929 rainfall 9.13 inches

Average

.15.77 inches

Deficit

6.64 inches

Don't waste water!

LADY ARMSTRONG

ASKED TO JOIN NEW YORK COMMITTEE

CRIME PREVENTION

GUARD DROWNED

Further Details

Chinese

In Canton

A message received from Cantor

are

In spite of the cancelling of evenings ago he broadcast an appeal Commencement has been made to the public to help the Hospital with the disposal of the land and martial law in Canton it appears that considerable uneasiness still Fund, still using his pseudonym. buildings by the sale of the new exists among officials, though on the

"The Evening Standard" states, European flats and the however, that within the last few tenements, both of which realised whole the general populace seems days many people have succeeded more than their written down in discovering his identity. "Audax" value. is Mr. George Roberts of Wimble-

More Progress Made

unperturbed.

The following message from our Canton correspondent confirms the reports received in the Colony. It

are determined to capture Canton in

don. Director of several companies. We are pleased to report that will be seen that the Kwangs! forces The journal adds that no more effec- considerable interest is being tive advertisement could have been shown in the property and nego- devised for the hospital fund than tiations are now pending which another two or three days time, the obscurity which "Audax" 史门 determinedly courted.

ITALIAN ART

HELD IN LONDON

we trust will lead to further unless Marshal Chiang Kai-shek in the meantime, succeeds in sending realisations. The site is a parti- reinforcements to Canton.

cularly good one, possessing marine reclamation rights, besides

having a long frontage within the

To Enter Canton

"The Kwangtung Command have shelter of Causeway Bay where been shifting troops from Samshuf GREAT EXHIBITION MAY BE cargo can be handled in any to the East River at Sheklung. It is reported that Kwangsi has taken weather.

Pending the sale of the pro-advantage of the weakening of the perty, several of the godowns have Kwangtung defence and taken Sam- been let and several areas of the shui, and it is confidently expected, sites of demolished buildings have (Continued on Page 12.)

SUBJECT BEING DISCUSSED

London, Yesterday.

A meeting will be held in Lon- been let for open storage pur- don on Thursday to discuss deposce, which brings in revenue in tails of a great exhibition of Ita- reduction of the cost of liquida- lian art, to be held at Burlingtention and Interest.

ance in full, on leaving the Colony, During the year we have been instead. House,

of ranking as ordinary Lady Chamberlain, wife of the placed in possession of the lots creditors for the amounts at their Foreign Secretary, who is at the adjoining Morrison Hill, which credit.

The Interview Witness added that on all cheque

New York, Yesterday, books the precautions which should

Witness said in further explana- The cross-examination of Prof.

Chief of Police, Mr. Whalen, has be taken was printed on the outside

tion that cheques involving big Shellshear concluded yesterday appointed Lady Armstrong, wife It was clearly stated that

amounts were concerned, and they afternoon, and when re-examined by of the British Consul General, s cheque books should be kept na therefore had to take all necessary Mr. Jenkin, for the Bank, witness member of his new Advisory Com place of security, and that they

said he had examined a great num-mittee on crime prevention. Reu- precautions. should be kept under lock and key.

By Mr. Potter: The Bank never ber of cheques with regard to penter's American Service. Coming to the interview with the.

did communicate to customers at pressure and said he had found no Treasury officials, witness said that the time.

account cases where the pressure of Mr. on the afternoon of January 18, Mr,

opened was

what Black's signature Black, of the Treasury, Mr. Dallin,

precaution they

take from that on the disputed cheques. INCIDENT IN FRENCH CONCES and another of the Government in respect of the cheque book. Questioned by the Chief Justice |

SION IN SHAMEEN Audit Office came to his deak. There The precautions to be taken were on the question of pen

head of the Committee in charge were allotted to the Company on In conclusion, the liquidators were two other officers of the Bank printed on the outside cover.

of the arrangements, has already the Government's resumption of wish to record their appreciation witness said that his own signa- (From Our Canton Carrespondent. made several journeys abroad, in part of the land adjoining the re- of the work done by Mr. Paker, present at the time.

To His Own Cost

ture might vary if one was written

Canton, Yesterday. connection with the organisation inery company, and these will the chief engineer, who has now. After they had examined the three Mr. Potter: The checking of num-when he went into the witness box

of the exhibition

shortly be offered for sale, when left the Colony, and Mr. Middle- disputed cheques for sometime, wit- bers, etc., are done for your own and another after he had been in

The liveliest interest has been negotiations with the owners of ton, the manager, who leaves the ness observed to them that the hand-safety, in the ordinary course of the box for some time. The state- Russian Guards of the French Muni- writing on the body looked familiar your routine?--Yes.

of a man's mind might have an in- cipal Police, who was on night duty shown by the Italian art authorities, adjoining properties have been Colony in the near future.

Mr. R. E. Coxon presided at the to him. Mr. Proctor and Mr. Dal- The ordinary liability of the Auence and in that case an by the steps of the French Gardens, and the Pope and Signor Musso- completed. lin agreed. Mr. Dallin also observed banker is that he should take upon examiner might fall into the error disappeared, leaving no trace what lint have expressed their willingness During the period ander review meeting, and was supported by Mr.. the Company's European en E. B. Clarke (Secretary) and Mr. that in two of the cheques the himself to know the signatures of of saying that the signatures were soever, to assist. payees' fames seemed to be those his clients? Yes,

not by the same man.

The French Municipal Council The great Italian galleries, in ployees were repatriated, the co John Fleming (quidator).

Shareholders present were Sirs of Government contractors. Nothing These cautions on your cheque Equable Temperament ....... employed Chinese divers on the off- cluding the National Museum of of the passages being included (in

books are common throughout the Sir Henry Gollan commented chance that he might have fallen Naples, have declared their willing- the accounts now presented. By Robert Ho Tung, Messrs. A. M. da Dallin, then turning to Mr. Black, British Empire?No, that would that it gave one furiously to think into the river. On Saturday after neas to contribute representative arrangement with Messrs. Jardine, Silva, A. Piercy, F. M. de Graca. said to him that the signatures ap be carrying it too far, as I found to when an expert said that the same noon his body was discovered in the works. British Wireless Service Matheson & Co., Ltd. who made H. H Lennox J Baptists, C.. peared to be his (Mr. Black's), my own cost when I once wrote out pen pressure was shown in all his river near the steps. Whether his Recently a similar exhibition of themselves responsible for this Savardd Remedios, A. WEastman,

death was

accklental or not Is Dutch art was successfully held in advance payment, the employees A. H Chambers, & H. Potts, Ho- a cheque and it was dishonoured.

Loudon.]

received their provident fund hal Leung and R. Sutherland. understood to say.

was said to contradict him. Mr.

Mr. Black replied that they certainly seemed to be his signaturues.

Witness was

(Continued on Page 12.)

On the 8th Inst. one of the

unknown.