Mr. Faithfull—On the majority of these. policies premiums have not been paid. There was some arrangement under which no premium was payable within three months of the date of the policy, so that up to now no complaints have hech made against this office by people who effected insurance. But we have one person who took out a policy and paid Tls. 15 or Tls. 16 in the belief that it was a genuine policy of insurance against fire and lightning.
His Worship—You are only going to prove that one man paid money Mr. Faithfull—Yes.
His Worship—Only one?
Mr. Faithfull—I understand we shall be able to produce more than one. The particular one I mentioned is signed by the defendant. Both Wallace and Spence signed policies, and we shall be able to produce policies signed by them. shall be able to produce first hand evidence that these companies do not exist.
Det.-Sgt. Yorke stated that he received a warrant from the Court on Wednesday afternoon and.at 10 o'clock on Thursday morning he went to the office of the two insurance companies at No. 8 Kiangse Road, on the second floor. He waited for Mr. Spence in the office. Det.-Sgt. Douglas found accused in the Trocadero bar and brought him to the ofice. Upon his entering the office, witness read the warrant to him and cautioned him. He said: 'I understand. I am going to be the goat for this." He was then taken into custody, and remained in the offices. while witness removed the whole of the office furniture, stationery, and everything connected with the company. Accused was then taken to the Central Police Station' and detained. At 4.30 on Thursday-afternoon he expressed a desire to make a statement. In the presence of Det.-Inspector Reeves he was cautioned that' anything he said would be -taken down and he then went to the detective office where he made a statement. Witness wrote the statement and read it over to the accused, who signed it.
Witness handed in the statement his Worship.
His Worship (to accused)—Do you want to see this statement?
Accused—No, His Worship—Do you know what is in it? Accused—Yes, His Worship—Are you sure?
Accused—Quite sure.
Asked if he had any questions to put to witness, accused said: During the investigations did I lay all the information in the office at his disposal to try and bring the case a satisfactory conclusion?
Witness—With one exception. On the Monday I received instructions to inquire into the status and origin of these companies.
His Worship—That was before the warrant was issued. Since he has been arrested, has he assisted you in_every way Witness—Yes.
His Worship—Is there any plate outside No. 8 Kiangse Road?
Witness—No. No sign outside, Inside there are two frosted glass windows in the doors of the office, and in black lettering there appear the titles of the two insurance companies, but without their place of origin. There were no names on the windows as to who was doing business for the companies, ARREST OF ACCUSED, Det.-Sgt. Douglas said that on Thursday he saw defendant in the Trocadero Bar. Witness knew there was a warrant for his arrest and was looking for accused. Witness told him that Det.-Sgt. Yorke was waiting to see him in His office and requested him to come along. He agreed to do so, and they got into a police motor car and drove round to Kiangse Road. All the accused said at the Trocadero with regard to the case was What is the trouble now?"
Mr. Faithfull—On that evidence, I ask for a remand for a week, tg enable us to work the case up. We may have to cable to America, Asked if he had anything to say, accused said he would like to read His Worship—Do: you wish it read publicly?
His Worship, after: looking through the document, said he would summarize it by saying that the first part was an explanation as to how accused came to China. The second part showed how he got into connexion with Mr. Wallace, and the third was that a certain investigation was made into the affairs of this company. The fourth part showed accused's connexion with the company, and the material part of it was that dealing with affairs between June 12 and June 16. A certain investigation was made on June 12, and accused was attending to the business of the company on June 16, knowing that on June 12 the affairs of the company were being investigated by the U. S. District Attorney, The last part was an explanation or a statement that accused personally had had no money at all out of the company. "Have summarized it fairly," his Worship asked.
Accused—Yes, perfectly fairly.
On the question of bail being raised accused stated that he had no money to get bail.
His Worship.—You will not have counsel Accused:—No, Tue Law or Conspiracy.
His Worship then explained the the prosecution what case they would law regarding conspiracy, shawm;
have to prove, and the accused the case he would have to meet. Havying proved that the companies were bogus companies, crudely speaking, "heads I win, tails you lose sort of concerns," the police would have to prove that certain people had been defrauded, and the most important
Text read from the printed page and cleaned; old type leaves the occasional error.