1934-03-13 — Page 7

Guilty To This

"I Plead Guilty

LONG FIRM FRAUD CASE "OPENS

› AFTER MANY REMANDS

Magistrate Amazed: Ques- tion Of Legal Fees

After several formal remands, the case against Jose Lizarraga, 35, of Manila; Wong Sau Mo, 29, of Shanghai and Nicholas Levitsky, alias Mecan, alias Levin, alias Macon, alias Semnon, 34, a Russian, who were charged with fraud to the extent of about $10,000 involving prac- tically all European firms in the Colony, was opened be- fore Mr. Hamilton at Central Magistracy yesterday.

Defendants were arraigned on 18 charges, the main one being that on various dates between January 12 and February 10 they conspired together to defraud such persons who should thereafter be induced to part with goods to them by falsely pretending they were carrying on a genuine business known as the Standard Products Co., at 20, Connaught Road Central.

Local firms alleged to have been defrauded are:- Messrs. Mustard & Company ($438.75), Messrs. Reiss Massey & Company, Ltd. ($2,293.33), Messrs. Jardine, Matheson & Company, Ltd. ($271.50), Messrs. Butter- field & Swire ($523), Messrs. Anderson Meyer & Com# any ($180), Messrs Lühring & Smith ($194.60), Messrs. Wang Brothers ($55), and Messrs. Dodwell & Company, Ltd. ($140).

How The Goods Were Obtained

Mr. T. S. Whyte-Smith, assistant Crown Solleitor, appeared for the prosecution, and the first defen dunt, Lizarraga was represented by Mr. R. H. Cole. Mr. M. A, da Silva appeared for the second defendant. Wong Sau Mo; Levitsky was not "legally represented.

Outlining the case for the pro- Eccution, Mr. Whyte-Smith said: Your Worship, the fraud alleged in the case is the type of fraud which I think is usually known as long firm fraud.

"H

HONG KONG DAILY PRESS, TUESDAY, MARCH 13, 1934.

Charge"

money has not been paid, the loss being $584.44. Here again, your Worship, a cheque was given but not until February 5. A shroff from Messrs. Reiss. Massey & Co., went round and applied for payment. He was given a cheque which was also post-duted to February 10. This cheque has been dishonoured.. On February 1, the first "defen- dant. Lizarraga, bought from Messrs. Reiss Massey & Co. a West- inghouse refrigerator valued at $1,780. He did not get delivery until February 10. The first de- fendant when ordering the re- frigerator said he would pay cash on delivery. On February 10 the refrigerator "was installed at the Nathan Road premises, but no pay- ment has been made.

On February 7. the third defen- dant, Levisky, ordered ve cases of White House Whisky from Messrs. Jardine, Matheson & Co. The amount which was $271.50 has not been paid. That is on Febru ary 7, your Worship, and I may say at tinis stage that I have no record of any further transaction in which the third defendant took part

On February, 13, the third defen- dant was seen in Canton. He ac- companied the Police back to Hong Kong where he was arrested. On February 29, the second defen- dant, Wang, ordered five cases of White Horse Whisky from Messrs. Jardine, Matheson & Co. The cases were delivered but the pay ment-$271.50 has not been made. On February 10, the Standard Products Company got delivery of sugar to the value of $523 from Messrs. Butterfield & Swire. This transaction seems to have been

"

arranged by both the first and second defendants and that was why they were both charged in Charge 10. The amount has not been paid in this case, and cheques were not given in the last few Morning Post" which contained | cases. the advertisement. It says that

Another Bad Cheque the "Standard Products Company On February 10, Messrs. Ander- begs to announce the opening of son. Meyer & Co. supplied a case a new provision store in Nathan of Polotol valued at $180 on the Road on February 12" Your Wor-order of the first defendant. ship will see that according to that The next case is a little differ- advertisement the store was to be ent, Your Worship, because in this opened on February · 12 As case, charge No. 12, the post-dated think my learned friends will very cheque was given in exchange for likely and very reasonably point the goods. It was, according to out, the shop could hardly open on the authority which I have read that day because the first and from Archbold, not a case of ob- second defendants were arrested ta'ning credit but a case of "ob- On January 26 or 27, 1934, the on February 10, and the third de- talbing goods by fraud. The case three accused were all staying at fendant was presumably not in the Ifer to is Messrs. Luhring and 15. Hankow Road, Kowloon. They Colony at that time. But it is to Emith On February 10, the first be noted that when these premises defendant got five cases of Anchor slept in the same room. I mention

butler this simply because I want to show were entered by the Police on a certain degree of confederacy February 10 there were no stores of They held them any kind. It is also interesting to among them. selves out as members of a bust-note that while they announced in ness called the Standard Products their advertisements that they were Company and, this company rented going to sell wines and spirits premises at three different 'places. they had up to February 10 made In the first place they rented uo application to the Import and -premises at 20. Connaught Road Export Department for a licence Central, ground floor. That was to sell liquor. February 10 was a supposed to be a godown. In the Saturday so that if they were go- second place they rented premises ing to get a licence to sell liquor at 94. Nathan Road, and that, ac and get the store stocked with cording to advertisements which iquor on February 12 they were appeared in the "newspapers, was cutting it, very âne. to be opened on February 12. It was never opened. In the third place they rented offices at St. George's Building.

Cheques Dishonoured On February 5, the Standard Products Company opened a bank account with the Banque Franco

Chinoise by paying in $250 and ob-

A staff was engaged and this formed the subject of the last three charges. That is to say charges 15 to 17. Two shroffs were eng- aged and they were asked to de- posit $500 each to secure their ser- vices and they did that. A store- keeper was also engaged and he was required to deposit $250 and

Emith,

valued

at $194.60. Mr.

a. partner of Messrs. Luhring and Smith, refused to part with the butter until cash was paid, but ultimately he took the caeque which was dishonoured.

On February 10, the first defen- dant bought a portable typewriter from Messrs. Dodwell & Co. for $140. The first defendant asked that a bill be sent along and he would pay. The typewriter was delivered but the money was not paid:

ALLEGED WRONGFUL

DISMISSAL

Ship Master's Claim Against Local Co.

Before the Chief Justice, His Honour Mr. A. D. A. MacGregor at the Supreme Court Festerday. Captain Laurence Nelson Beer, of Marble Hall, Nathan Road. sued the Foo Hong Steamship Company of P. & O. Building for wrongful dismissal, the amount claimed being $1,365,

The Hon. Commander "G. F. Hole sat on the Bench with the Chief Justice, as Nautical Assessor.

Mr. H. C. Macnamara instructed by Mr. O, K. Hall Brutton was for the plaintiff and Mr. H. G. Sheldon, instructed by Mr. W. A Mackinlay of Messrs. Deacons was for the defendants.

Hints Of An Alleged Conspiracy

Counsel for plaintiff said the claim was for wrongful dismissal as from July 31, 1933, and in "view of the responsible position of a Master Mariner he did riot think that this was an excessive claim.

Nothing

only from two and a half to five fathoms. He reported the incident to Mr. Ramsay who was then in charge and asked to have the Chief Officer' removed, more was said and, owing to a shortage of Chief Officers at the time, the man was allowed to stay on the ship.

was outwara

missal, continued Mr. Macnamara, Defendants admitted the dis-

and sought to justify it by saying that

plaintif was habitually With regard to the second in- negligent while he was employed†cident, he had left the entrance by them. Plaintif would deny of the river and that he had been guilty: alter-bound with a full cargo setting a natively he would say that the course to take the ship past the negligence, if any, of which he had, Amherst and another group 01 been guilty, had been condoned in rocks on her port. When they some cases by defendants in that were about a mile abeam of the they, with full knowledge of all Amherst Rocks the ship" struck the material facts, continued to something and bumped up ада employ him. Defendants also ask-

and down five times. The carpen- ed plaintiff to mitigate the claim ter reported that she was making because they were willing to em- water in the forward tanks but ploy him as Chief Officer instead none in the aft tanks." Soundings of Master.

were taken and showed a depth of five and a half to seven "Acts of Negligence"

fathoms. The ship was headea Counsel said it would be submit-back for Shanghai and dry-dockea ted that the acts of alleged negli- the same day. Five large dents gence were condoned and that were discovered on her starboard none of them were made the sub- side and some plates were bent Jeet of court proceedings.

and Hvets missing,

On September 20, 1930, plaintif was Master of

the Kaitangata which became stranded on Cam bodia Point whilst returning from Bangkok, no damage being done except that the ship was stuck on the bank for two or three days.

Plaintif later took over the 8.8. Kamo, and it was alleged by de- fendants that on April 22, 1932, the ship struck a rock or reef in the vicinity of the Amherst Group

situate about 12 or 14 miles from the entrance of the Yangtsze River. For various reasons this group, which was highly danger- ous to shipping was not lighted. but, it was strewn, about with the wrecks of ships which had struck the rocks and floated on to sink nearby. In this case; plaintif On February 7, "the Arst defen-would say that the Kamo did not cant bought a second hand type- strike a rock or reef but some writer from Messrs. Wang Bros for other object which was most likely $50. The typewriter was deliver a wreck. Plaintiff was in charge ed the same day but payment has of the ship at the time and had not been made.

no assistance from the Chlef Off- 'cer who was drunk, The damage done to the vessel amounted to $10,000.

(Continued on Page 11)

he did. In each case agreements JAPANESE SHOW

were signed.

BOAT

Due Here On

Thursday

taining a $5 cheque book. At the same time that the account was

On January 29, Levitsky, the opened two cheques were left with third defendant, called at Messrs. that bank for collection, one was Mustard & Co. He said he was for $3,380 and the other for $600. opening or had opened a business These two cheques were purported known as the "Standard Products to be drawn by one B. Waton, on Company and he ordered a safe for the bank in Peiping. These che- $300 and a weighing machine, for -ques were to be sent to Peiping for $158.75, making a total of $438.75. collection.. I may say at this stage He was told that payment must that these two cheques were later be made at the end of the month. The s.s. Un Kai Maru No. 3, the returned dishonoured. This is in The safe and the weighing ma- turd Show boat which sailed out interesting point. After the arrest chine were delivered the same day, of Hokkaido, Japan, is due, here on of the first and second defendants but payment has not been received. the morning of March 15, and will the cheque book from which these On February 6, in response to ap- berth alongside the. O.S.K., Wharf, two cheques had been extracted plications for payment, the first Victoria, where she will stay until was found in the safe at Con-defendant, Lizarraga gave a post the afternoon of the 17th instant, naught Road, so that, according to dated cheque for the amount to when she leaves for Manila, the evidence, It may be inferred February 15, and that cheque has This vessel will have for display that these two cheques were drawn been dishonoured. Now, I think I and sale on board a large and by somebody connected with the should explain at this stage, your varied assortment of Agricultural, Standard Products Company. Worship, that my submission is go-Marine and Industrial products These two cheques were extracted ing to be that credit was given for from Hokkaido, which is the most from the middle of the cheque a period prior to the acceptance of famous district in Japan for its book. I don't really know what that cheque, and it is in respect specialised products from the farm the reason was but mention this of that credit that this charge is and the sea, as well as from its as a peculiar efrcumstance. My made. That is to say the second submission with regard to these charge. cheques will be that they were left

ار

Not Reprimanded"

and he was not reprimanded in No court of enquiry was hela

any way, nor was it suggested after his explanation of the col lision, that he had put the vesser on the Amhurst Rocks or a reet. The Chief Officer was reprimandéá for being drunk and of no assist-

ance,

reported to Mr. Williamson, the The Ocksew Island incident was

manager who, on being told that right, tell Mr. Ramsay." there was no damaged safi, “All

· He dla su and thought the matter was closed.

'He did not-report the matter.on the official Harbour Report sheet as he considered it too trivial, .. newspaper later, however. from which he concluded that the Chiet officer had added the incident to the report after he, the Master had signed it. The Chief Officer was, Tom Brown. There was a lot of discussion and enquiry into the affair and it was to this that he really attributed his dismissal

He saw a reference to it in a

“Punishment”

Mr. Beer sald Mr. Williamson in an interview told him he could see there had been a conspiracy on board to get him into trouble. He had punished the offenders and was also going to punish him as he did not think witness coulá keep discipline on board. Mr. Williamson, referring to the Ock- sew incident, sald as far as he could see, he had had the ship in jeopardy."

a

The third incident which defen- dants alleged to be due to negli- gence, occurred off Ocksew Island near Amoy

Plaintiff was in charge of the vessel. He laid a course to take the ship between the Island and the coast, there being some few miles between the two, and went below, leaving in- structions with the Chinese bosun to call him at a certain time when he would lay a fresh course. The next thing plaintiff knew was that they had struck something in the water. The bosuri, in defiance of

"Mr. Williamson told me to send of the vessel. The excuse he gave officer of another ship in the com- discipline, had altered the course. in my resignation and go as chief- Junks. The engines were stoppea I would not admit that I was was that he had to clear some pany. I refused to do so because and soundings taken showed that wrong. I was not at fault, and 3 all round. The ship only drew two they were in 12 fathoms of water did not see why I should put in

my resignation," a number of fishing stakes around number of letters which had pass and a half fathom. As there were

Mr. Macnamara produced appeared ikely that they hided between Mr. Eeer and the com- struck one of these, or a derelict pany. The first was dated August junk, No damage was done, how from the company Informing would bear out the submission that Ocksew incident they were willing ever, but the plaintiff's evidence Mr. Beer that as a result of the It was as a result of this incident to retain his services in the capa- that the plaintiff was dismissed. No Money For Meal

city of chiet-officer only. To this Another justification given by Mr. Beer refused definitely to ré- with the Banque Franco-Chinois Mr. Whyte-Smith then referred for collection in order to establish to Archbold, 29 edition of 1931,

defendants was that he did not sign his position as master, credit with that bank, thus paving Page 1303 which defined the mean-.

keep a Night Order Book Whilst admitting that he should have the way for the course of dealings ing of obtaining credit by fraud Cuttlefish, Compoy, Seaweeds and kept such a book, plaintiff would which the accused were about to and obtaining goods by credit. He Tea with Seaweeds. adopt. There will be evidence to also referred to Roscoe in a case

say that the book was missing from the ship after oneChiet the effect that the $250 was the in which a man, with only a half Insect powder, Peppermint pro- Omicer had left it, and that he only amount ever paid into that penny in his pocket went to a ducts, "Milk, Butter, Sauce, Boér, used to write the orders on sheets restaurant and had a hearty meal. Cider. Vegetables in tins, Fruits in of paper. In any case it would be Furniture were had and pur-He was unable to pay and this, tins, Sea Food in tins, Cakes, etc. submitted that this was not a chased for the various premises Mr. Whyte-Smith contended, was It is needless to say that at the cause for dismissal 7 SEPT and these had not been fully paid obtaining credit by fraud.

| present low rate of exchange on Bang Mr.Whyte-Smith then went on } Japanese yen, these goods are pro-

Plaintiff's Evidence His Worship: Does this form part to say: This is my point in this curable at quite low cost on board of the charges?.

Captain Beer was then called to case: that there was a period of and it will also be possible for local give evidence. He said he was Mr. Whyte-Smith: No, but that credit prior to the giving of the importers to enter into direct con at present a second omeer employ your ship went on the rocks may be taken in as evidence,

cheque...

tract with the suppliers or manu-ed by the Steamboat Company 100 yards from the land would On February 1, Levitsky, the facturers of the above goods, who After bearing out his counsel's

that be negligent narization?-- Continuing, Mr Whyte-Smith third defendant, called at Messrs, number eighteen fas and are version of the ship, running Bald: With regard to the adver- Reiss, Massey & Co. and ordered a staying on board the ship. A aground at Cambodia Point with Withess admitted that an entry tisements, they were inserted in case of Ovaltine which was de-hearty welcome is extended to all mess said that while the ship was was made on the Harbour Omos various Hong Kong newspapers, livered. On the following day he visitors, A

stuck he took bearings and form with regard to the incident soundings According to the chart but tst 16 had been entered by he should have had 10 fations or the Onter Officer afiler witness hún water round him but in reality signed t soundings revealed that there were.

account.

for

Nothing In Stock

factories. The goods comprise-

Agricultural Products Onions, Potatoes, Oranges, Pears,

Marine Products Salted Salmon," Dried Codfish,

Apples.

Industrial Products "

and they were done through the ordered another two cases which The above steamer te of 4,530 "Advertising and Publicity Bureau. were also delivered, and on Febru- tons and has refrigerated cham- I might show your Worship and ary 3 he ordered two more cases bers installed on board. She is extract from the South China which were also delivered. The commanded by Captain Tasaka,

No Negligence Answering Mr Sheldon, Winess said in cross-examination that it was impossible that the ship struck the Amhurit rocks,

Who was responsible for the mayigation of the ship from mid- night until 4 a.m, on the night of the Incident? The master is al- ways responsible

to

That was your watch it was my responsibility, I am not a watch-keeper,

(Continued on Page 11)

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