That wealthy persons were involved' in the recent transactions on the cotton yarn market was the opinion of Mr. Vu Ya-ching, who was one of the witnesses at the First Special District Court yesterday during the enquiry into the alleged speculation of the two officials of the Ministry of Finance: Mr, Wu Chi-ting, director of the Internal Revenue Department, and Mr, Sheng Sheng-yi, director of the Kiangsu Consolidated Tax Bureau. The hearing is to be resumed this morning.
According to Mr. Vu, margins amounting to over $20,000,000 were received by the Chinese Cotton Goods Exchange, Several of the cheques given by those who held long positions bore sums as high as several lakhs. In order to facilitate the investigation, these cheques, most of which were drawn on foreign banks, should be traced.
Mr, Vu told the court that he was one of the founders of the exchange. Unfortunately it had become the headquarters of speculators. When the cotton yarn prices soared to $295 a bale, no less than $40,000,000 worth of this commodity was imported into China.
Petition to Generalissimo view of the serious effect the abnormal market conditions had on the people, Mr. Vu said he petitioned Gen, Chiang Kai-shek to order a thorough investigation. When oficials of the Ministry of Industry, who conducted the enquiries, que tioned him, he mentioned the names of Mr. Sheng Sheng-yi, Director of the Kiangsu Consolidated Tax Bureau, Mr, Wu Sai-yuan, director of the Chinese Cotton Goods Exchange and Mr, Hsu Mou-chang, all of whom were then widely rumoured as the group which held long positions.
Mr. Vu said he did not know of a firm called the Seven Star Ca. It was, however, suspected that it had been organized by seven personi He did not know if Mr. Wu Eh ting, director of the Internal Revenue Department, had been involved in the present case. The official, Mr, Vu said, might have speculated before. He had not mentioned the official's name to the Ministry of Industry.
The aim of the enquiry was to serve a serious warning to the speculators, Mr. Vu told the Procurafor, He also told Gen. Chiang Kaishek of this object in his recent interview in Kuling, It - was not his wish to see all those responsible for the recent manipulations go to prison, Mr, Vu then submitted a written statement to the Procurator, saying that all what he wanted to tell the court was embodied in it.
The contents of the statement were not made known in court, howeve
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