Rodgers, 131 Szechuen Rosd, stated that he became acquainted with accused when he came to pay the rent of s tenant witness had. Accused used to come off and on, One day Heraux proposed to witness buying an insurance policy. Accused stated that he had s scheme on to buy policy from a friend of his who was to leave Shanghai shortly, and he required Tls.. 8,000 to bay thie policy, which would mature soon, bat witness refased to give him any money. The next time accused came he wag accompanied by a trustworthy and wealthy native who introduced accused to witness and said that accused wanted loan, and this loan was for baying insurance policies; the name of the native was Say-Zoong. Witnens asked Heraux if he was working in the Mutual Life Insurance, and he ea war, at a salary of Tls. 300 " month. Accused stated ho was making money and wanted Tls. 3,000 there and then, this being part of the Tle. 8000 required, on which he said he could make fifty per cent which would be proportionately divided according go the amount put in, Accused told witness he was getting on well, aod his mother, who hada lot of money, was coming to Shanghai, and that he was getting married. This all happened before May 18. On the afternoon of May 18 Heraux came to witness and said "If you cannot give me Tls. 3,000, can you give me less?" Witness was willing to give accused Ts. 1,000. Witness told accused if he brought the policy and it witness could endorse it; be would advance accused Tls. 3,000, this accused replied he was unable to do, as he had to pay Tls. 8,000 to get the policy. Accused came in the afternoon aod wrote out four promissory notes for four monthly instalments, and the profit wss {to be Tls. 125 according to Heraux's calculation. Witness gave accused Ts. 1,000, and as he had not seen policy asked for some kind of a soci Di Accused said he would give him his furniture. The list of fornitare and bills were attached to the document.
Witness told accused that this mortgage was useless and wanted Zay Zoong to sign as guarantor. In June accused called, and the first promissory note was dae. Witness sent the shroff to Herauz's office, but he came back and said that he had had trouble. On Jus 20, scoused paid witness Tls. 300; the balance was not paid.
Cross-examined—Witness said he was a business man, and looked on himself as a partner with Heraux. Witness looked upon Heraux as the speculator. This was the only money witness invested with accused.
By the Court.—Accused was rich becatne he rected salary of Te month sod bad commission on pol mused did not tell witness how he managed to keep his carriages, Ab steward at the Central Hotel, ssid he first met the accused in middle of February, when be asked witness to take out an insurance policy. Witness said he had no money, and witness retorted "You must do a little; it is good for you." Accused said he was employed in the China Matual Company and showed witness the company's circular. In May accused called again, saying he knew a Chinaman who wanted to sell " policy which was about to finish in " month, Accused said he had a good chance to buy the policy, bat was short Tls. 3,000. Witness said he bad no money and scoused suggested he should borrow from " friend. Accased asked for T's. 500, but witness declined, though he afterwards agreed to try and borrow the money, On the following day accused again called and witness then gave him Tle. 1,000, which accused promised to repay on June 20.
was in the form of the date was fixed for June 20 because the money would be paid by the Insurance Company on that date, Witness told accused he did not want interest, but he wanted " chance—or share.
Mr. Inck ean—Chance belong what Witoess—Profit.
Continning, witness ssid secosed called on June 21 and said be could not repay the Tls. 1,000, bat gave him $300. Accused asked witness to extend the time for the repayment of the Tls. 1,000 for fourteen days and witness agreed. Before that time had expired secosed had ran away.
Cross-examined—Witness did not make any enquiries about the policy. He had no time. He thought Heraux was looked like a big ager. Accused asked witness if he wanted security, but witness said he did not. "He talked very good, sweet," said witness. "He said very good chance, also." He would have made inquiries about the policy after he had got his money back with s profit; he would have inquired how the money was made and how much accused had made, The farther hearing was adjourned until Monday at 9.30 a.m.
Text read from the printed page and cleaned; old type leaves the occasional error.