Claim for Tls. 50,000 over an "Eastern Times" Article: Allegations of Misappropriation Before Messrs, Allman and Yui at the Mixed Court, on Monday, libel' notion was brought by Mr. Kao En-hung against the Chinese Associated Press and Mr. T. 8. Lee, its managing editor. Mr. Kao, who was Minister of Communications several months ago, is described in the petition as "a prominent' Chinese official, Adviser the President of China, and Director of the Telegraph Material Department of the Ministry of Communications at Shanghai." He was not in Court.
Mr. L. W. Hartigan appeared for the plaintiff and Dr. O. Fischer and Mr. L. K. Kentwell yenresented defendants.
The claim is for Tls. 50.009 and is based on an article which appeared in the Eastern Times, entitled "Why the Director of the Telegraph Material Department of the Ministry of Communications refuses to vacate his post," and containing the following:—
"It is reported by the Associated Press (Chinese), that the Director of the Telegraph Material Department. of the Ministry of Communications at Shanghai, Mr. Kao En-hung, during the time of the prosnerons exchange business, speculated for his personal gain with funds belonging to the Telegraph Material Department of the Ministry of Communications. He made some money at first, but afterwards, on account of the instability of two famous exchange companies, his agent Wong having suffered heavy losses, and anticipating no good results. embezzled the money and absconded. It is said that ho did business in three exchanges and lost TIs, 100,000, This fact reached the ears of the Ministry of Communi cations and, in order to prevent him from squandering the funds of the Telegraph Material Denartment, he was transferred to the Telegranh Department. of Shensi. The vacancy thus created was filled by the appointment of Chao Ching-hua, former managing director of the Shanghai-Nanking and Shanghai-Hangchow-Ningpo Railways. It is about one month since the order to the above effect was made, but as the losses Mr. Kan incurred were for great to be covered un. he approached prominent military officials and asked. them - to petition the Government, by telegraph, for a continvanre of nie ser vices at Shanghai, and. in any event to cause some delay his transfer. Tt ie said that the Ministry of Commnnications. on account of this anpronriation of its funds for improper business, at the expense of the Government, and affecting public transportation, thus demonstrating bad conduct on the part of an official, contemplates sending the Chief of the Labour Denartment to Shanghai for the purpose of making an investigation and to consider the matter.""
In cross-examination, plaintiff': personal representative disclaimed any knowledge of the fact that My. Kao expressed his willingness ty accept defendant's apology and withdraw the charge. He denied that he was prolonging the case without instructions from Mr. Kao.
Text read from the printed page and cleaned; old type leaves the occasional error.