1936-12-02 — Page 6

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HONG KONG DAILY PRESS, WEDNESDAY, DECEMBER 2, 1936.

Embezzlement Charges WATCHMAN' WHO

Against European

OLD STAMPS USED TO DEFRAUD

Case For Committil

Joseph Charles Gardner appeared on remand before Mr. K. Kren at the Central Magistracy yesterday for alleged embezzle- ment of approximately $32,000 from the Union Insurance Society of Canton. The case is being taken for committal.

Mr. E. H. Williams, Assistant Attorney General, appeared för the prosecution. Chief Detective Inspector J. Murphy and Det.- Set. Wheatcroft were present in court for the police.

Mr. W. A. MacKinlay, held a watching brief for interested pär- thes.

Hams said:

STOLE!

Wallace Harper Victimised

Yeung Chau, 54, a watchman, was charged before Mr. E I Wynne-Jones, Senior Kowloon Magistrate yesterday with theft of motor car spare parts from Messrs. Wallace Harper, & Co., store room at Tong Mel Road, on November SAL

11

Accused in answer to the charge sald that he had picked them, up. His Worship: If you pick up spare parts you must'return them, and not keep them for yourself:

Yeung: I do not pick them up, someone else will!

A representative of Wallace Harper Garage stated that the accused had been employed as a watchman for the past athe month.

His Worship. addressing Yeung: You are a fool. I suppose you see that nobody else steals, while you steal yourself!

In outlining the case Mr. W was put through by Mr. Bentley all the requisitions are in defendant's Defendant was an employee of handwriting. The Requisition does the Union Insurance Society of ¦ not give details of the Transfer. Canton where he had worked since only the numbers of transters and 1913. He resigned on the 31st July amount of stamps required. 1936 and at that time he was 13- Defendant would then take the sistant to Mr. Bentley in the Se-requisitions and the instruments to cretarial Department. Mr. Bentley the Stamp Office and both would Is in charge of this department be handed to Mr. Crawley. Superin- and accused had worked there un- tendent of the 8.0. At the same der Mr. Bentley since 1928.

time the necessary stamps were Defendant's principal duty was bought. He examined the transfer, the keeping of the Share Register verified that the stamp duty psprisonment was imposed. and Ledgers.

asked for was correct. He initialled the requisition and handed it and the deed to the shroff, in the Stamp Office, to ar the stamps. The shroff affixed the stamps on the instrument and handed it to a Press-man to over-emboss the stamps. This embossing die always bears the date on which the stamp is over-embossed.

"DEFENDANT'S WORK

I will outline first in detail the way the defendant carried out or should have carried out his work. In the course of his employment he received instruments of transfer of shares from London, Shanghai and

The requisition was retained by Mr. Crawley and the deeds taken. back to the Scelety where they were finally signed by the General Manager. The same procedure ap- plied as regards, the purchase of stamps for power of attorney which were usually connected with the transfers.

other places. At the time of re- ceipt they were unstamped, Defen-

1 dant worked out from the Official Market quotation of the shares on that date the amount of stamp duty payable on the transfer. He then wrote out cashler orders for the amount of stamp duty payable. These orders were orders to pay the Stamp Office the amount due for stamps. He would give details in the order of the numbers of the

DEFENDANT GIVES NOTICE shares. One cashier order might On the July 24 defendant told cover the stamp fees for several Mr. Bentley that he was sorry he transfers and if necessary the de-, had to give notice to leave at the fendant would write fuller detalls end of the month. His intention on the back of the order.

after leaving, he said. was to open a shorthand school in Canton and also keep accounts for various firms. On Mr. Bentley's suggestion be tendered his resignation in writing and on July 31 he resigned receiving a considerable sum of money as his share of the Provident Fund.

On August 20 a Portuguese boy came to the office and 'handed a

These orders were then brought to the cash department and if the accused wanted cash for them the clerk 1/c petty cash would stamp "Pay by Petty Cash" on the order: 14 accused wanted payment by cheque the cashier would stamp "Pay by cheque."

ments

TRANSFERS CHECKED

transfer

were next

The cashier orders and instru-letter addressed to Mr. Bentley to an office bay. Ling. Kwoon Lam. brought to Mr. Bentley who check-He in turn handed it to Mr. Bentley, hed them and initialed the orders It is in defendant's handwriting if correct. Next, defendant or a and signed in his name. That messenger brought them to the letter was confession that the defendant had been carrying out a sub-manager "who signed the

swindle since February 1935. In it cashier orders and they were re-

the accused mentioned one particu- turned to the accused.

After that the defendant tocklar transfer, the subject of the first the cashier orders back to the charge. where the sum of $154.80 should have been used for the pur-" Cash Dept. for payment by cash of

chase of stamps. He admitted he. had pocketed the money. He gave certain information as to how bath the government and the Society had been defrauded by him.

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tion. Le. Jan 1 to July 31 defendant only, got two cheques for the cashier orders. Cheques were usually pald for the larger amounts. When payment was to be made by cash the cashler 1/c petty cash on production to him by the accused of the cashler ok, der paid over the stated amount to defendant who signed his name on the back of the order as acknow- ledgment of receipt of the money. These cashier orders were then kept by the clerk and the trans- action entered in his records.

**PAY BY CHEQUE"

If the order was "Pay by Cheque" defendant went to the cashler, and handed him the order. The cashier wrote out the cheque

drawn on a Bank for the amount. Formerly the cashier made the cheque payable to the Hong Kong Government, but the two cheques which defendant received in 1936 were at his request made payable to the Union Insurance Society, When made payable to the Society he would be able to get cash for them. He said it was more con- venient to have ready cash at the 2.0. when purchasing the stamps as delay was avoided. The real reason why be asked for cheques payable to the Boclety will appear later.

{

DEED EXAMINED The transfer deed a question was examined and it was verified that old stamps had been affixed to the face value of $154.60. The cashier order relating to the trans- fer was traced. It was one which had been pald by cheque and the shroff had paid defendant cash for the amount. A. search was made among the requisitions at the 8.0. but.

of course, no requisition for this amount of stamps had been made.

Examination of various transfers,

cashier orders and requisitions was then made and it was found that defendant's claim that he had been carrying out a systematic fraud was correct.

FIRST CHARGE

The 1st charge refers to the sum of $154.60. The second charge-1 similar conversions since January 1, is really charges,-refers to

1936. The item No. 24 for $54.20 on June 24 was paid defendant by cheque-the remaining items were paid by cash. 4"!,

The third charge really 67 charges as 57 transfers are involved is mainly the transfers for which defendant received the sums men- toned in the first two charges. A few are transfers connected with

When he got the cheque he took It to the sub-manager who signed It as also did an accountant and defendant took it back to the cashier orders bearing dates in 1935. cashier along with the order. The Instead of purchasing the neces- cashier would hand the cheques to the shroff for cashing. They were sent to the Bank, cashed and pay- ment made to defendant who then signed the cashier order to ack Feceipt.

say stamps be affixed old stamps' previously afixed to other docu- ments to these deeds. In a few cases stamps of insufficient value have been fixed-in others the values have been confused.

11 THE NEXT STEP.

INGENUITY EMPLOYED The next step was the purchasa The cashier orders for stamps in of the stamps at the 8.0. It was the period in question amount to defendant's duty to see that the a total of $7,887.80 whilst purchase Instruments bore the proper of stamps amounts to $7,115,60," that stamps. Defendant or some one in a difference of $722,29 which is on his behalf filled in a "Requis-not however the total amount tlan for Revenue Slampa.” ~ With ¦ mentioned in the 1st and 2nd the exception of one Requisition charges. The total converted is which was for a large amount and more..viz. $854.80. The discreparity.

Sentence of six months, im-

between the sums-$82.60-is ex- plained by the fact that for some unknown reason accused made out requisitions. tor. stamps for which he received no cashier orders. He may have purchased them so as to affix a few new stampe along with old used stamps in order that su- spletons should not be aroused."

WORKING METHOD ŠIMPLE Defendant's method of working was simple. He received payment

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YOUTHFUL BAG SNATCHER CAUGHT European Lady Robbed

| AUDACIOUS

POSTAL THEFTS Interesting

Disclosures At

Kowloon Court

Mrs. D. M. Stevens was walking

· POSTMAN GAOLED along Wong Ne! Cheong Road on Monday at 3.30 p.m., when a young

Bow д postman stole letters. Chinese suntched

took them home, opened them in her handbag from under her arm. She was

the hope of finding money and then reading a newspaper at the time. repasted them, was described to Mr. and che" attack

E. Elmsworth at the Kowloon surprise,

Magistracy yesterday when To Sarg. 43. postman No. 20 was arraigned en a charge of stealing eight letters the property of the Postmaster General on November 26, at the Kowloon Post Office.

was a complete

Her children were playing close by and they gave chase to the culprit, who ran to the rear of some houses along the road.

The children followed closely un and the heels of the snatcher finally saw him in the basement of a house extracting the contents from the purse, which contained

in cash for the various cashier orders, pocketed the money and made.no requisitions as he should have made though sometimes he requisitioned for and "bought only a small number of stamps. Instead $40. he obtained old used stamps, some of them dating back 20 years, and him and he threatened to strike They tried to get the bag from

affixed these. In his letter he them. Evading them he ran out mentioned that the Shanghal of the building. but by that time, office

had requested that an passers-by were blowing police effort should be made to get the whistles. $154.60 paid on, one transfer re- funded.

Wong Kau a seaman on No. 1 arefloat. caught up with the culprit, who was passing by and threw the bag on the ground.

He may have thought that if this was done discovery of the fraud would be made and so decided to resign.

When it was found out, a warrant was issued for his arrest and on November 3, he was arrested in No. 5 On Lan Street. On the same day

he was charged on the first count and made no statement.

EVIDENCE CALLED

The first witness for the prosecu- tion was Mr. J. Bentley, 22, Peak Mansions, who is in charge of the Secretarial Department of the Union Insurance Society of Canton, who was J. C. Gardner's superior immediate.

The shroff of the Chartered Bank, Chan Ping Kal, also gave evidence. He stated that he had been in charge of all cash at that bank for the past twenty-five years.

The hearing is to be continued this afternoon.

Tel.

CRUDE WORK DESTROYED Mr. S. Randle, Superintendent of Mails in making these disclosures said that if the job of repasting the letters was likely to arouse su-

troyed. spicion because of its crudeness, the letters were unhesitatingly des-

To Sang according to Mr. Randie. had been employed in "chopping"" and sorting out letters. Owing tö certain discrepancies in the mall. To was suspected. On the day in question as he was about to trans- port mails from Kowloon to Hong

to turn out his pockets. Kong, he was stopped and ordered

Taken to the Wanchal police station he informed Det-Sgt. C.

Eight letters were found in his Dowman that he was from Singa-possession. He was immediately pore. but that he had just come down from Canton to look for work because his mother Was seriously ill there.

Mr. J. A.

Appearing before Fraser at the Central Magistracy yesterday, the defendant. Chan Kwong, 20. informed his Worship that he had nothing to say.

Sgt. Dowman said that the de- fendant was well-clothed arid

looked well-fed.

Mr. Fraser: Have you any m latives hon?-Nu.

Is there anyone here who can speak for you?-No.

His Worship said that he would take his youth into consideration. and added that he might have

arrested.

CLEAR RECORD RECEIVED "The accused had a clear record for seven years" stated Mr. Randle in conclusion.

Addressing To Bang, the Magis- trate said: You had a good position in the Government and you go and

spoil it.

Detective. Sergeant Hutchinson stated that he was instructed - to- ask for the maximum penalty.

Sentence of three months' was tmposed.

faced a much more serious charge. "Defendant was sentenced to six weeks in Kaol with hard labour.

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