1929-04-25 — Page 4

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THE HONG KONG DAILY PRESS, THURSDAY,

“LOCKING THE STABLE

DOOR."

TREASURY'S NEW PRECAUTIONS

AGAINST FRAUD.

BANK VERSUS GOVERNMENT CASE RESUMED.

ACCOUNTANTS CROSS-EXAMINATION

BEGINS.

Mr. T Black, the Treasury Accountant, completed his evidence and was cross-examined at some length by Mr. F. C. Jenkin during yesterday's resumed hearing of the case before the Chief Justice (Sir Henry Gollan, K. C., C.B.E.), in the Supreme Court in which the Attorney-General, on behalf of the Hong Kong Gov. ernment, is suing the Hong Kong and Shanghai Banking Corpora tion for the re-crediting of a sum of $260,407 as a sequel to the Treasury frauds for which Carvalho Yeo is still undergoing a long term of imprisonment.

It is contended by the Government that cheques under dispute were forgeries and, therefore, payment by the bank was unautho- rised. The main points of the defence are alleged negligence on the part of the Government and a denial that signatures on the cheques are forgeries.

Mr. Eldon Potter, K.C., and Mr. H. G. Sheldon are for the Attorney-Generul and Mr. F. C. Jenkin for the Bank.

The special jury consists of Messrs. H. A. Lammert (fore- man), G. F. Haslam, R. M. Dyer, S. 1. Churn, B. Wong Tape, C. L. Sandex and Wong Kwong Tin.

JURY VISIT THE TREASURY.

Mr. Black, Treasury Accountant. said that Carvalho Teo joined the Treasury on September 1, 1928, as a clerk in charge of the water rate collection book at a salary of $1,000 a year. The books, of which he was in charge, were kept in a safe, in which cheque books, both current and reserve, were also kept. Yeo had access to the safe. He left the Government service on January 6, 1998, saying he had a quarrel with a superior officer. He forfeited 25 days salary in lieu of notice.'**

Witness added that at the Novem- ber Criminal Sessions, last year, Carvalho Teo was convicted for uttering three forged cheques. Those same cheques were the sub- ject matter of the present action.

- How Precautions,

Mr Black said that the reserve theque book was now kept in the Treasures's own safe in his office while the current cheque book was locked in a drawer of the general office safe, and not left loose in the safe as before.

"All Speculation."

I ask you once more and for the either thought or done if an occar- last time what you would have rence of this kind came before your notice if you were in charge of ordering cheque books?—I can't say definitely.

inevitably you would have taken I put it to you, Mr. Black, that some action upon it-It is very likely.

It put it to you that if you "had the bank you would have taken proper regard for the Treasury and some action It is probable,

You would have thought that there Was something wrong-I might have done. It is all specu lation.

Witness later agreed that he would have reported an occurrence of that kind.

Probabilities,

Mr. Jenkin It would not occur to you that one of the first essen- tials would be to find out from the bank why it was that only 570 cheques had been sent whereas they held your knowledgment for 6001- It is difficult to say what would have been done,"

When cheque books are empty they are now examined by witness Questioned with regard to the and the

covers retained whole. second cheque book which Mr. Witness now puts his initials to Jenkin pointed out was brought entries in. the cash book when he into current use on December 20. signs cheques. He also inspects the operated that day and the whole of cheque book each day to see what the following day and then found unused cheques there are.

to have altered numbers on the cover, he replied that if he had reported the first case the second would not have arisen,

Cheques for amounts exceeding $500, paid over the counter, are not signed by him until they are called for by the payee. All new cheque. Mr. Jenkin: In other words books received are inspected by two thirty cheques could not have been officers to see that the full number taken out as precautions would of cheques are inside, after which have been taken to prevent it both officers initial the books. The Yes. same two officers again examine the books when they are returned from the printing works at Victoria Gaol.

And the three disputed cheques would not have been taken out 1 Yes..

Witness agreed that if he had. Another alteration made, added seen the cheque book two days be witness, is that all cheques for fore and then be found it with amounts exceeding $1,000 are cross-altered numbers he would have re- ed whether the payee wishes it or ported the occurrence to his chief.

· Not An Infexible Rule.

APRIL 25, 1929.

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GIOVANNI MARTINKLAI No. 8109, 12-inch,

Norma-Mira Norma-Part 1 and Part 2

(Hear Me, Norma) (Bellini) 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-

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MARION TALLEY

No. 6919, 12-loch

La Travista-Coro delle Zingarelle

(Chorus of Gypsies) (Verdi)

La Traviata Coro del Mattador!

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Overture (Bach)

Suite No. 2, in B Minor-Part 4

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His Lordship: Supposing a trick of this nature was carried out, what about the voucher ↑

Witness: That would have to cor- respond with the cheque.

Mr. Jenkin: Assuming that a person forged a cheque in this manner, could be not forge a

Why? Because of Tsang-No

separate voucher —No.

Chater Road.

What did you mean ?—I was prob ably thinking about Mr. Haggerty's desk at the trial. It slipped my memory on that occasion

"A Mare's Nast."! Mr. Jenkin re-read other ques- tions put to witness at the trial at his answers to them.

beds of the cheque -I have always You are sure you denounced the

PLAIN CLOTHES MAN ARRESTED.

CONSPIRACY TO EXTORT

MONEY FROM HAWKEBS.

It will be recalled that on Tues-

day four hawkers appeared before. his Worship charged with aiding and abetting in the conspiracy.. Wong Kam Shing, in addition to facing the charge of conspiracy has to answer & count of misconduct as a police officer.

officer of the Hawkers' Department Wong Kam Shing, a plain clothes the voucher and the cheque would

to the registry clerk from my been clear upon the point.

of the Hong Kong Police who wan Yet you definitely denied it to me him to the throff if payment was desk, and it would then go from

when I asked you the question on apprehended Од Tuesday, wa5- required to be made over the earlier occasion. Am I brought before Major C. Wilson counter, but if it was a depart- understand that you suggest that mental cheque, then it would go to by the time the meeting at the yesterday for the conspiracy to ex- the department concerned.

bank was concluded, everybody cen- tort money from hawkers. Coming back to the discovery of cerned should have had a very clear the missing cheques. It did not knowledge of the fact that three occur to anyone to ask Tsang to cheques had been forged 1-Yes, assist in clearing up this matter - they should have been quite clear. He was taken into the Treasurer's

They should have had no doubt office after the stabs of the cheque at all by reason of your protests books had been found.

tions They had my declaration Did you not go to Tsang, your

that the signature was not mine. right-hand man, and say, What

In point of fact, you referred to

Chief. Detective Inspector Rey- about this!"-No, I reported it to it as a damned good forgery"-olds, who prosecuted, in the co Mr. Messer. He sent for Trang. Yes..

Right away As far as I can

Why did the Government auditors of the four hawkers, also prosecut

Mr. Sheldon here stated that the

recollect. He sent for Tsang and regard it as a mare's nested in yesterday's case. Addressing sent him for the stubs. I remember Was not that their view at the end his Worship, the C.D.L said he examination of Mr. Black was con- In cross-examination witness said him saying something about two of the interview-I don't recol understood that the defendant was cluded, and the Court adjourned that 1,112 vouchers had been check-cheque books being abort.

lect for the jury to visit the Treasury ed but a large number of those The discovery of the fact that the Two auditors thought everything not passed by him until covers of the cheque books had would be all right, yet you had January because he had not signed been tampered with was made denounced the cheques as being Mr. Jenkin cross-examining asked the cheques included on the vou- without the assistance of Tsang-forgeries 1-1 can't be responsible Mr. Black if the effect of his eri- chers until then. The checking pro- He assisted in finding out that the for what they thought! dence was that Tsang On Wing was toward the end of the month.

cess would be at highest pressure other 30 cheques were missing. I The case was then adjourned until beyond reproach. Mr. Black re-

think he must have mentioned that Monday morning next. plied in the affirmative.

Mr. Jenkin': The cheques at that two books came back short from Witness agreed that it was Teang on your deck in working hours.

time requiring signing were placed the bank. On Wing's duty to order cheques

Before the second book was dis- and to receive them from the bank.

If you leave your desk they re-covered 1-I am not certain of that. Mr. Jenki: On bringing a new the office they remain on my desk.

main there 1-If I move about in. I was not in the office all the time. cheque book into use would it be Tsang On Wing's duty to see that Mr. Jenkin held up three cheques it contained the right number of for witness's inspection. The che- cheques -I can't say that. It guns overlapped so that only the bottoms of the two underneath cheques were visible.

not.

offices.

Cross-Examination,

were

would be a matter for him.

Witness said that the cheque book ordered on November 2 was used

Do you ever sign cheques like by Tsang On Wing on November this to save time -Under no cir- 30 and also on December 10

cumstances,

the following day it was discovered Do you look for the words that the number on the cover had. **dollara only on every cheque of been altered and that thirty cheques the 10,000 you sign during the course of the year I don't look were missing.

Mr. Jenkin: If you had been for the words but I would notice engaged in duties connected with their absence if they were not "the cheque books and for the first written.

If a cheque passed you in that time in seven years an occurrence. like this had taken place what manner it would be simple to add would you have done about it?-It the additional figures -For a very is difficult to say: I know now good forger. I could not do it my- what I should do about it. It is Boll..

Mr. Potter Objects, be wise after the event. Would it have raised in your Mr. Potter asked His Lordship mind, and mark you it is assumed if that suggestion of defence would that you had twice checked the be allowed as it had very grave book and acknowledged 600 cheques possibilities and he had not heard as having been received, any sus of it before that moment. His picion It may have done. I Lordship replied that Mr. Jenkin can't climinate subsequent events was entitled to ask those questions. from my mind. I know banks have. He could mention the suggestion made mistakes in sending out during his opening, but not after- cheques,

warda.

Cany

Friendly Visit to Bank.

You remember the serial numbers

CINEMA NEWS.

represented by a local firm of solicitors and he asked his Worship to fix the question of bail. "The. Police," said the C.D.I., "have no objection to $1,000, but that is the least they would approve of. I am Baking for a formal remand until the 30th, when the four men who were before you yesterday come up again.

His Worshp remanded the de-.. "THE BIG CITY TO-DAY AT fendant until April 30, fixing bail

at 81,000: QUEEN'S.

The defendant: Will your Wor- ship reduce bail to 8500.

With a large cast headed by of the meme you brought back from Lon Chaney, a tale of mystery and the bank Yes, one of them zefers intrigue is unfolded in "The Big to one of the missing cheques. City, which will be shown at the Witness went on to say that he Queen's to-day, until Saturday, carried the stubs of the cheque Obaney plays a New York gangster books to the bank absolutely ignor leader and exciting scenes of the ant of the fact that a number of hold-up of a fashionable night club, and police raids, are among the cheques were missing.

highlights of the picture.

Your visit to the bank was quite friendly I intended my visit to be a friendly anc. As friendly as one can be with the Hong Kong Bankri (Laughter.)

Why did the auditors of the Gov-. ernment go there ?--I don't know.

Mr. Jenkin referred to his notes taken at Yeo'a trial.

"Did you say anything to officials of the bank about Mr.. Messer's signature or Tsang's handwriting in the body of the cheque?" was one of the questions I put to you You replied, "No." Now you say you mentioned it. Why did you not mention this at the trial-We were all over the place then.

WUSIH WILL BE MADE SERICULTURE CENTRE.-

His Worship: No, certainly not." Defendant; I have arrested many hawkers and

His Worship? I have said

SMALL-POX AND DIPHTHERIA.

LAST WEEK'S RECORD OF CASES:

Only 16 new cases of small-pox, A scheme to make Kiangsu Pro7 from Victörra, from. Kowloom vince greater silk producing area and 1 from Shaukiwon, were re- with Wusih" as the centre of the ported last week All patients industry has been formulated by were Chinese The death roll re- Mr. Ho Yu Shu, Provincial Com. mained at the high figure of 36. missioner of Agriculture and Min Four more cases were reported on ing, and submitted to the Provin- Munday. ciel Government for approval Ac There were also 7 new cases of cording to the project, ericultural diphtheria (2 British and 5 Chi- stations ars to be established atacse) with a fatalities, and 1 case - Wusth, Wuhsien, Wukiang, Chang (fatal) of enteric. chow, Tanyang, and Quinsan for the On Tuesday, it is satisfactory to asmtising of the silk-worm, while note, there was no fresh ease of mulberry tree experimental station amallpox The only notification of is to be opened at Chirkiang, the diseases was an American imported new provincial capital.

case of meningitis........

Are we not all over the place, you term it, now 1-We were more so then than now. It was very difficult to follow your questions.