Exchange Transactions Alleged Ferdinand G. Boulon, former manager of the firm of Gaston, Williams and Wigmore, appeared in a preliminary hearing before Mr. F. J. Schuh], Commissioner, at the United States Court for China, last Friday morning, on a charge of embezzling from Eis former" employers the sum of Tls. 25,685.78.
Major C. P. Holcomb, U 8. District Attorney, appeared for the Government; Mr. W. S. Fleming, who was appointed Special Assistant U. S. District Attorney, appeared for the Government and also for Messrs. Gaston, Williams and Wigmore, Inc.; and Mr. R. S. Haskell acted on behalf of the defendant.
In opening, Mr. Fleming stated that the embezzlements were transactions due largely to exchange. Defendant entered into certain contracts with various banks, in the name of the firm, for the purchase of gold or sterling. The market would fluctuate and frequently show profits. Defendant sold out the exchange and secured the difference or profit, which, being credited to the firm, was transferred to his own personal account.
When Mr. Swift arrived about two months after defendant had left the firm, he ordered an investigation to be made into the accounts of the firm. A number of irregurarities came to Mr. Swift's attention as a result. He asked Mr. Boulon to come over to the office and make an explanation of the affairs. Mr. Boulon came over the following day and, in the presence of Mr. Swift, Mr. Denby, Mr. Ferguson and counsel, was asked for an explanation. He claimed that the firm was due him the sum of Tls. 30.000, Ts. 12,000 of which he alleged he loaned to the company, and Ts. 15,000 which was salary and commission.
Counsel gave a number of instances of transactions by defendant. No entry. he said, was made te show that the firm was interest-
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