October 16, 1909.]- an audit.
He could not understand how the accounts were kept.
341
CHINA OVERLAND TRADE REPORT.
Let us have it then? We have not had it same thing as the account being closed. The final yet?-Certainly. I will speak in a fair-mind-entry in the Hongkong currency local account
manner.
was a credit from the local currency account for $13,315 80.
As a matter of fact you found them unintellig-ed ible P-Yes.
An experienced man of accounts, and you found them unintelligible ?-Do you refer to the quarterly return P
I have asked you my question. Do you find the form of the accounts unintelligible?
His Lordship- Do you mean the bookkeeping? Mr. Douglas-I mean the whole system in which the accounts are kept and presented at the end of the quarter.
Witness-I cannot speak of the whole system. Mr. Douglas-I am speaking of the construc- tion account.
Witness-There is no form in the various books of record. They are unintelligible to any. body.
Have you ever been in Government service ? -In India,
In a Government railway ?-Yes.
Not in the accounts department?-I was dis- trict engineer, and had the spending of large sums of money during a period of seven years and accounted for the same,
And with that experience you found those accounts unintelligible ? - The accounts I refer to, recorded in the books, I certainly did find unintellegible,
Did you ever ask for an explanation ?—At what particular period are you speaking of?
When you wanted enlightenment ?-There is a letter in Court explaining.
With regard to the balances, did you ever ask Mr. Wright for explanations of what you could not understand P-Certainly, I did.
▸ Did you get those explanations ?--Not in the form I required.
Did you get them ?-Up to a certain date, but not in the form I required.
Not in a form you could understand ---In a form I could understand, but it was not com- plete.
Latterly you did not confer with the chief accountant at all when you wanted an explana- tion ?—I did.
to
But you were more apt
think you could get any information out of his assis- tant?-His assistant was working on the special work of analyses which I required, therefore it was natural I should have a good deal of conversation with him on the matter.
And you with him P-Yes.
did have a good deal of conversation
was
At times when the chief accountant absent?- Sometimes he was absent, but general ly he was present.
Have you, as a matter of fact, any doubt as to the experience of Mr. Butler Wright in accounts P-No.
You mentioned to Mr. Wright the steamer he was leaving by P-No.
When did Mr. Power give you Mr. Butler Wright's private pass book ? On a Friday morning.
|
Let us have it ?-I understood that accused would be ready to move down to Tungshan on October 1st.
Had not orders been railway office should remove to Tungshan on given that the
that date?—Yes.
A house has been built for yourself and Mr. Butler Weight down there?-A house was provided.
Before that transfer was made the Hongkong currency account was overdrawn by that amount ?—Yes.
Who had drawn the cheques which resulted in that overdraft?-Mr. Butler Wright, as
chief accountant.
Mr. G. Richarme, manager of the silk depart- ment of Messrs. Jardine, Matheson and Co., And the house provided for the defendant is Ltd., examined by Mr. Looker, said Mr. Butler not a very commodiousone ?-There is nothingWright told him he should like to invest some the matter with it.
money which he hadidle. Witness suggested that he should invest it in silk, and subsequently informed the accused that he had a Chinese client. The amount required was $10,000, and witness received a cheque for this amount and handed it to the Chinaman. The interest was $7 per thousand. The cheque had since been repaid. Witness had 13 cases stored in his godown for Mr. Butler Wright.
It is not a very large one? What would you call a large house?
Well, it only cost $8,000, and yours cost $20,000!---Would
you call
my house a large house?
I have not seen it, but I understand Mr. Wright's is not very large. -As large as railway quarters usually are.
from Arnhold, Karberg's spacious flat, and to put it into the house provided?---Yes.
But it would be hard to take his furniture
You have had one or two causes for friction with Mr. Butler Wright ?----Not that I'm aware of.
Do you remember having a conversation with Mr. Wright about a memorandum he wrote upon the transfer of funds from London ?--Yes, but I cannot remember the actual words that passed.
Do you remember saying to him that he was a fool to take the Chinese view of the matter? -I did not.
You are both servants of the Chinese Govern- ment, are you not ?-----Yes.
And not servants of the British and Chinese Corporation?—Yes, jointly.
Was there any other matter on similar lines that you had a conversation with Mr. Butler Wright about?--We discussed a great many questions.
Do you remember a difference of opinion be tween you and him as to whether a sum of £8,000 should be included in the account to be submitted to the Board of Posts and Communica- tion?--I don't remember any special difference of opinion.
The British and Chinese Corporation have, as a matter of fact, kept back that £8,000. What for?-For preliminary surveys made about ten years before.
You expressed the opinion that you considered that correct?—I don't remember expressing any decided opinion about it. It did not come into my province.
F
Did you not have a difference of opinion with Mr. Butler Wright on this point when he insisted upon that amount being kept open in the head office as a debit against the British and Chinese Corporation P-No.
Mr. H. W. Kenney, acting manager of the International Banking Corporation, Canton the accounts branch, gave evidence as to opened by the accused in that bank, of the amounts disposited, and of the withdrawn. His testimony showed that large sums had been transferred from the railway accounts to defendant's private account, and Upon the information you got out of that that at times when certain of these trans- book these proceedings were commenced?-fers were made the balance at credit of defen- Yes:
Was it in an envelope, or had-it already been opened? It was opened.
It was handed to P-Yes. And you had no hesitation in making a thorough examination P-No.
you
And commenced after reference, first of all. to the British and Chinese Corporation in Hongkong P--Yes.
Their reply was
a warrant.
prosecute ? Procure
What time did you get that ?-About 3 p.m. I suppose you would verify the pass book between ten and twelve ?----That is so.
It was well known, was it not, that Mr. Wright left for Shanghai by the Tenyo Maru? It was well known before the 6th.
It would have been quite possible for a telegram to have been sent to the British Con- sul-General at Shanghai requesting Mr. Butler Wright's return on important matters connected with accounts?--I cannot reply to that.
You never thought of asking that should be done ?- No.
Is there another possible reason than that the defendant was going to abscond for packing up his goods --No answer.
Answer ?-Yes.
sumis
him to make certain withdrawals which he did. dant's private account would not have enabled
In cross-examination witness said the old construction account in his bank was operated upon by His Excellency Wei Han and Mr. Frank Grove. The railway accounts in the bank could only be drawn upon by Mr. Butler Wright as chief accountant. On June 29th $20,000 was transferred from the Hongkong cur- rency account to the local currency account, and the remainder, excepting the interest, to the Hongkong and Shanghai Bank's agents at Canton. On the following day the interest was transferred to the local currency account. Mr. Grove informed witness that he did not know the chief accountant had a Hongkong currency
account.
His Lordship-What was the state of Mr. Butler Wright's account when he left Canton ?
Witness-He had Q credit balance $2,879.60.
of
In re-examination witness said there was no balance in the Hongkong currency account on June 30th, and there being no balance was the
Cross-examined by Mr. Douglas, witness said that he made the offer to Mr. Wright to store any goods for him, as he was removing to Tungshan.
Mr. F. Lorria, examined by the Crown Advocate, said the defendant asked him to sell some goods for him by auction. He also asked him to send three cases to Mr. Wilks and to return certain things to other people.. He did not send the cases to Mr. Wilks, as the Consul asked him for the key.
In cross-examination witness said the defen- dant put a limit on the things he asked him to sell.
His Lordship asked if, apart from the furni- ture packed up and the goods to be offered for sale, there was sufficient furniture to furnish a house P
Witness-Certainly.
His Lordship After everything was sold that you were asked to sell, would there have
been sufficient?
The house could
Witness-I don't think so. not have been properly furnished.
Mr. Douglas-You were asked not to sell a bedroom suite, a quantity of crockery, and a smaller sitting room suite?—Yes.
was
4
At this stage the Court adjourned for tiffin. Superintendent of Police a. P. Brindle was the next witness. He spoke to taking posses- sion of Mr. Butler Wright's effects under instructions from the Consul-General after the defendant left the Shameen. Witness' first visit was on the afternoon of Friday, 3rd September. He found all the rooms half furnished, and saw five packing cases in
There the passage way.
no ad- dress on any of them, so witness did not take possession, but he took possession of the furniture found in defendant's room.
Cross-examined-Are you sure there were not two big cases in a spare room ?—No.
Mr. E. O. Stanton, manager of Messrs. Deacon and Co., examined by Mr. Looker, stated that his firm formerly acted as agents in Canton for the Hongkong and Shanghai Bank. On June į 29th Mr. Butler Wright paid them on account of the Canton-Kowloon Railway the sum of $12,814.78.
askin g
Mr. J. O. Power, sworn and examined by the Crown Advocate, said he was assistant accountant
Railway. of the Chinese section of the Canton-Kowloon He knew the defendant and had known
him elsewhere. Witness did not know whether the defendant had private means. He remembered when Mr. Wright left Shameen, and heard he was going to leave When witness called at the office on the 1st September he saw the defendant, and told him it was rather an awkward time for him to go away while the auditors were there. Subsequently the defendant wrote him to call at the head office to take over charge. He was to take charge on Friday, but Mr. Wright left on Thursday without handing over, and without explaining the accounts. Witness left the Shameen on Wed- nesday expecting to see Mr. Wright again on Friday. When he arrived, however, Mr. Wright had left. Before this time the defendant had never explained to him the working of the accounts in the Inter- national Bank. Witness had never seon the accounts, as the journal; the cash book and the ledger were kept in the safe. Witness had
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