An Enterprise Ending in Gaol Two Chinese appeared before Messrs. Li and Ferrajolo at the Mixed Court on Monday afternoon charged with making fraudulent representations and obtaining various sums of money.
Det.-Insp. Kilkenny appeared for the Police, Mr. L. K. Kentwell for 14 complainants and Mr. ©. 8. Franklin for the accused.
The evidence given for the prosecution showed that the accused and two other Chinese and an American; not yet in custody, opened a company at No. 10 Szechuen Road under the name of the Full Trading Ca., later removing to No. 30 the Bund. From March to May, this year, they approached a number of Chinese firms and individuals and falsely represented themselves to be kerosene merchants and asked such Chinese firms and individuals to become their agents at different towns and cities in the interior. When the agents were appointed each was required to pay' a cash deposit as security. After some time, no kerosene oil was turned over to the complainants who became impatient and suspicious. Every time defendants were asked to hand over the oil, they told complainants that it had not yet arrived but that it would arrive shortly. Investigations were made by agents of the complainants who found out that the company had no oil at.all—or to be more correct there were a couple of empty tins in defendants' premises. It was further learned that the company was in liquidation and about to close its office The police were informed and the two accused were arrested on the premises, the other men not being apprehended.
Mr. Franklin submitted that as his clients did not sign the deposit receipts, they had nothing to do with the fraud.
Mr. Kentwell admitted that what Mr. Franklin had said was correct, but the two accused were with the company for the three months that it had been operating and they must have known of the fraud that was going on. They must at least have known that there was no
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