1928-02-14 — Page 2

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THE HONGKONG TELEGRAPH,

DRUGS IN CHINA,

FOREIGN TRADE IN TIENTSIN GROWS."

TUESDAY, FEBRUARY 14, 1928.

ALLEGED' SHANGHAI

FRAUD.

MANAGER OF INDIAN FIRM

CHARGED.

·MANILA FRAUD,

PESOS 60,000 WORTH OF

GOODS REMOVED,

A prominent firm located in.the. Port Area is the victim of a fraud involving the possible loss of Pesos, 60,000 in merchandise, it was learned in Manila: Inst week.

The demand for foreign drugs in Ticutain is rapidly growing

In H. M. Supreme Court at owing to the Increasing belief in foreign medicine by the Chinese Shanghal last Tuesday, before his and to the large number of wound- Honour Judge Sir Peter Grain, ed in the civil wars in North China, and a jury, a criminal case, the Bays the Chinese Economic Bulletin, hearing of which will in all-pro The manager of the defrauded At Tientsin there aro many bability extend over three or four firm personally reported discovery modern hospitale and dispensaries, days and in which financial, mer of the crooked" deal to the city for whose supply large quantities cantile, and exchange transactions fiscals office. The Manila Police of drugs are imported every year.of a most complicated and intri and Secret Service heads were According to the practice in this cate nature involving nearly Tls.kewise noted of the latest bi trade representatives at. Tientsin 50,000 are concerned, was com-"steal" and have been asked: to of drug factories abroad import menced. The accused, Chathurs- cooperate in the apprehension of for sale usually at 1 to 15 per cent, Ing Hirasing Bedl, formerly mann- the swindlers. discount. In the case of prepared ger of the Indian firm of Watan- medicines the discount is larger, mal Boolchand, was charged that sometimes as much as 50 per cent being entrusted with moneys of but the dealers must retail at the Watanmal Boolchand, He fraudu- price originally fixed. Drug stores lently converted to the use and pay one month after receipt of benefit of one S, G. Verma certain stock. The modern hospitals ales sums of money during a period ex- bay from the local importers," bittending from September, 1926, to are allowed a smaller discount. November, 1926, amounting in all

to Tis. 42,700.25,

The Tientsin drug stores supply goods to Peking. Shansi, Shensi, Kansu and Shantung province, They generally make a profit and seldom lose money.

The majority of the foreign drug importing firms at Tientsin sve of Gorman nationality. During recent years drug factories in the United States have concentrated their attention on the China market, and appointed resident ra presentatives to compete with th

Germans.

HEUNGSHAN ROAD.

PROJECT TO OPEN UP A

MODERN HIGHWAY.

!

1.

The fiscal's 'office and police authorities refused to comment on the case. It is understood that several suspects have been named and the officials wish no publicity. to hamper their Investigations.

It was learned, however, that a foreigner or foreign firm", with the aid of a trusted employee of There were three other charges the alleged offended firm, has suc- involving smaller sums of money.ceeded in withdrawing gooda Mr. A. G. Mossop, the Crown valued at pesos 60,000, from that Advocate, and Mr. E. H. Platt pro- company's warehouses. It secuted on behalf of the Crown further learned that the employee and Mr. J. R. Jones appeared for mentioned already has disappear. the defence..

cd.

Plea of Not Guilty. The charges were read over to accused, who pleaded "not guilty

EVAA

these drafts, and also overdrew D-A bills on the same American trading company through the same The Crown Advocate outlined bank. The Crown alleges that le the case for the prosecution.. He would send goods valuo, say, said that the complainants are an $1,000 to San Franciso, but would Indian firm with offices in Shung- draw bills for say, $2,000, which hai, Canton,. Hongkong and Hyder- necessitated the making out of abad. The head office is at the two invoices, a false one for the Intter place, and the proprietor of larger amount being sent to the the firm is a Mr. A. Lalchand, who banks, and the correct, and small- resides.in India. The firm is con-er, one to San Francisco, the sur- cerned with the export of silk and plus money being credited to Ver- goods of that description from ina's account." In due time, so the China. The capital used in prosecution aver, when the bills Shanghai was Tls,, 40,000 which fell due they were not met, and was kept in some six banks in Messrs. Watanmal Boolchand Shanghai, the company's credit be-were under the necessity of repay- Ting banks who had advanced these

A Very interesting development of the Heungshan peninsula is promised in a project, which will shortly be inaugurated, to build a road round the greater part of it, and connecting Shekki and Macao,

A Chinese syndicate has obtaining very good. ed a franchise from the Govern- ment at Canton to construct this In 1925, the accused Bedi was large sums of money. In order to cover up these advances to Ver- highway, which has already been sent out from India with the ob-ma, it is alleged, the accused in completed as far as Koo Hok, ject of working in the company his monthly reports to Hongkong, which is between 35 and 20 miles offices in the Far East and, in and India credited Verma's ne from Macao. The inauguration 1926, Bedi took over the manage count each month, so as to square will be formally celebrated onment, of the Shanghai branch, bet, by pretending that a cheque March 4, when Mr. Wu Te-chen coming the accredited agent of had been paid for the amounts- will officiate, going down from the company with power to sign he credited Verma's account and Canton specially for the ceremony, cheques and documents.

debited one or another of the The road is to be 32 feet wide throughout, and when completed will run from Kwan Chuk, at the Macao border, to Chinaan, on the west alde of the Heungahan penin- sula, then along the west coast through Chui Mi, Koo Hok, and other towne until Shekki is reached. It will then run east- ward across the isthmus to the

other side of the peninsula, coming eonat before turning inland to Koo about half way down the east Hok, where the west coast section

Among the accused's duties was banka, and owing to the entries be- the making to Hongkong and ing made in that way, as alleged India of weekly reports of ex-by the prosecution, neither Hong- ports and. to send monthly state-kong nor Hyderabad kuew any- about the transactions. ments showing the business that thing

́Alleged Advances.

CHATEAU

had been done during the month. With regard to the D/A drafts, Bedi is alleged to have debited Verma's account with "Goods Pur- In September. 1926 an Indian, chased," so leading his employers hnd named S. S, Verma, arrived in to assume that the money cisco firm named The India-Ameri- Shanghai representing a San Fran- been spent in that direction.

Hongkong Discovery. can Trading Co., and, becoming will again be reached, The road acquainted with the accused, was

Discovery arose by the Hong- will thus form a loop, with Koogiven a desk in the latter's office, kong office learning, through a Rok as the junction point.

This highway will be capable of and also resided in the same house third party, that the India Amer)- the premises can Trading Company In San carrying heavy traffic, and a system as the accused at of tolle is to be adopted, from provided by Messrs. Watanmall Francisco had been dishonouring motor-buses and so forth, which Buolchund in North Szechuen Road, their bills, and the Hongkong ed a franchise from the Govern- The prosecution allege that these manager promptly wired to the ac- should repay the outlay. The two men were friends, and that cused to be careful and cease do- syndicate's capital is $300,000, but

as a result of the friendship the ing business with Verma, when, the construction is to be carried accused committed the acts which it is alleged, the accused was fore- out on co-operative community he is alleged to have done. The ed to wire to his employers at lines, the labour for different Crown allege that Bedi atarted off Hongkong that Verma had dis- sections being provided by villa- by advancing monies to Verma honoured drafts to the extent of ers through whose territory it drew cheques qn Watanmall Bool-Taela 48,000 which, naturally, was will run.

chand for large sums of money, a great shock to them, and upon The roadway is likely to prove which cheques he gave to Verma, enquiries being made the present very popular when completed. In not against goods, but as pure prosecution was launched.

Doulatram, an Indian clerk, who the main, it will provide a means payments. It is alleged that he of communication free from the had no authority to do so, and that had kept the books, gave formal of the dishonourod danger of attack by river pirates, had it been known to his em- evidence who at present greatly handicap ployers, they would promptly have cheques, and of entries which, he trade in this area. It will also stopped such dealings.

swore, he had made in the books' open up a region of much interest,

at the accused's Instructions": historical and otherwise.The road In order to cover these advan The witness was very closely passes through a hot-springs dis.ces, it is alleged further that ho cross-examined by Mr. Jones for trict; and the historical associa-drew "clean" bills of exchange the defence, his evidence being of tion is provided by its touching the through the Netherlands Trading a highly complicated and technical birth-places of Tong Shao-yi and Society and the Netherland Indis-nature, and was still in the bux Dr. Sun Yat-sen. It is also thought che Handelsbank on the India when the court rose for the day. that important finds may be un-American Trading Co. in San Admissions were obtained from earthed in the course of further Francisco. The bills had no docu- bim that the translations of the excavations. During the digging ments attached, and it is stated books were inaccurate, and that already undertaken, a very ancient were not drawn against goods there had been goods actually pur mirror, believed to be at least a sold. By reason of the good chased and paid for to the extent thousand years old, has been dis- standing of his firm, the accused, of Taels 34,000 odd. covered.

it is alleged, was able to negotiate The case was adjourned.

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