1930-02-26 — Page 14

R. P. M.

ROBERTSON PROTECTED || HONGKONG COMPANY.

METAL

TH.H. ROBERTSON Co.

ASPHALT

LESTOS

AVY! TERPROOFING

ENVELOPE

ELLESMERE PORT

WEDNESDAY, FEBRUARY 26. 1930.

THE HONGKONG TELEGRAPH.

SOUND ARGUMENT!

AN OUNCE

OF PROOF

IS WORTH

A TON

OF TALK:

Judgment

by

CASE OF AN ALLEGED INSURANCE FRAUD.

was reserved Judge Kao in the Provisional Court, at Shanghai, in the criminal action against Dung Zoong-zeh, charged with embezzlement and securing money under false pre-

CHESHIRE, ENGLAND. tences. The case started last

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October and attracted consider- able attention because the com- plainants were

score in over a number and were all people, of small means who had put money in an enterprise of the accused's, the Fon An Insurance Co., which attempted to liquidate and left policy Beveral hundred small owners facing the loss of all they had put in.

One of the complainants was the brother of the accused who said that he had been defrauded by the company of some $4,264.

At the time of the first hearing which was held before Judge Chen the accused described himself as being unemployed and 50 years of age. He was arrested at the Way- side Wharf on October 24 after he- had stepped off the str. Shanghai Maru, which had just arrived from Nagasaki. He had been deported from Japan whither he had gone after the case started and he was arrested on a warrant executed by the Provisional Court.

Chinese Registration as Well At the time the accused said that he had no connexion with the in- but that his surance company brother had been a director of it and had come to difficulties which later were adjusted. He said that at the time he published a notice La the newspapers to the effect that he had no connexion with the case. After hearing the evidence at the first hearing the accused was admitted to bail in $100,000 shop security which was not fur- nished.

At subsequent hearings the com- heard and their plainants were

stories varied only in the amount of money they had lost in the com- pany. They had been paying on policies for many months and when the company ceased business they could get nothing back nor could they find the accused whom they alleged was a director in the enter prise and the manager of the Shanghai office.

Later the accused said that he Was the superintendent and a shareholder in. the. Foh An In- Burance Co. which was duly re- gistered with the Board of Com- merce and Agriculture as well as with the Hongkong authorities, although the company had no for eign shareholders.

The head office had begun to liquidate last year and the large debts were being gradually paid off. The company was not finan- cially embarrassed, but the direc- tors were tired of the business and decided to liquidate.

Prior to 1925 insurance policies were issued in the name of the Foh An Insurance Co. at Hong- kong but later they were issued in the Shanghai in the name of China Foh An Insurance Co.

The company had been establish- ed at Hongkong to deal in marine, fire and life insurance and was capitalized at $1,000,000, one half of which was paid up. A security deposit of $22,000 had been placed with the Hongkong authorities at the time the company was formed.

There were six

ceven branches throughout China and others in Saigon, Annam and Singapore.

or

An Accountant's Evidence. Mr. J. B. Manley was a witness at one of the hearings and sald that the accused had been ordered by the Hongkong office to liquidate the company in March. Witness was acting as the Shanghai agent for the liquidators under à power of attorney from Hongkong. Wit- ness was of the opinion that the company should settle the matter at the surrender value of the policies. He said further that the company would pay in proportion to the assets and would attempt to pay the surrender value but he did

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not think sufficient fonds would be available to do this fully.

As the case progressed through several hearings numerous com- plaints were made all along the same lines as the original ones.

The accused later said that the office in Shanghai had been sold for Tls. 123,000 and of this $100,000 had been paid to the policy holders. This went to about 200 policy hold- ors and later an additional $100,000 was paid to them, but there were still some 300 people who were not compensated. He was of the opinion that the Hongkong office was in a position to pay everyone if they wished to and that no money had been sent from Hongkong to pay the people in Shanghai.

The hearing was taken up with arguments by the lawyers.

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