The further hearing of the case! in which A. Berblinger and C. Leyer are charged with being concerned together in obtaining certain goods by trust receipts and fraudu-Jently missppropriating them, or the proceeds of the sale thereof, to the total value of approximately Tis, 16,000, contrary to articles 391 and) 383 of the Chinese Provisional Criminal Code, was continued in the: Provisional Court, on Tuesday after noon, before Judge Liang Lone and Stevens, Senior Consul's Hongkong & Shanghai Banking Corporation, who were represented by Messrs, J, E, Badeley und J. MeNeill. Messrs. 8. ¥. Yih and -Y. Ling appeared for the first accased, und Dr. Q. Fischer watched fon behalf of the second accused.
Mr, Badeley outlined the ease and tuted that the first accused was partner in the firm of Han Yung in the course of liquidation, scend accused was an misappropris tions took place whilst the firm was solvent. Counsel pointed out the! difference between money secured under trust receipts and mortgages. fu the case of transactions where rust receipts were issued the bank libeld the goods, and trusted the consignee to hand the proceeds of the sales of the goods covered by such receipts over to the bank.—Goods} obtained through trust receipts should be held on behalf of the bank, and periodically the bank' made inspections of godowns to see that goods so covered were intact. In November, 1926, a representative' of the Hongkong & Shanghai Ban} ing Corporation paid a visit to the Han Yung godowns and found a shortage. In consequence of thi knowledge, the bank wrote to the Han Yung Ca., who paid a certain kum on account and promised to look into the matter.
The Bank's Suspicions shortly atter that, Berblinger failed to meet his bills. he was getting ade The bank dec rise to let the matter go on and took possession of the goods in the godown. The shortage found was the. subject matter of the present action. Counsel submitted a state. int showing. the various trust receipts given by the Han Yung Ca. and the amount of goods found against them in the godown. When the firm went into liquidation, the liquidators' report showed "two important facts—"the books were badly kept and a book was. missing," The missing cash book was a very suspicious circumstance because it probs ably would have shown the cash rec ved for the months before the liquidation. From the liquidators' report, it was gathered that, for four years Uefore the bankruptey, Berblinger had withdrawn from the firm $177, (000, altheuseh the firm was practical.
an. insolvent position.
Referring to the statement" produced, counsel detailed the various fers showing how the scoads oh! ed under the trast receipts were disposed of, und partly disposed of,
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