Kobe, Sept. 16.
Twenty-seven out of 31 persons arrested Yate last month today were facing charges for alleged smuggling and illegal exchange transactions.
Joseph Bitker, former Shanghai businessman, was named by police as the leader of the alleged international smuggling ring.
One American and two Britons were Reported to be among the arested men.
The alleged ringleader, Bitker, a M2-year-old Polish Jew, was reported to have gained a profit of at Most of the arrested men are Russians and. Poles of Jewish origin.
They were arrested together with 'a large number of other foreigners, who aroused the suspicions of the police and customs because of their frequent trips between Shanghai and Japan and Dairen.
Numerous foreigners were released after preliminary questioning, it was reported.
Chinese, Japanese Held Four Chinese and two Japanese are still held by the police in connection with the charges facing the international smuggling and speculation ring.
The ring was arrested for alleged illegal speculative dealing in yen exchange for gold which was smuggled into Shanghai. The men were also charged with bringing watches and platinum into Japan from America.
Police officials said that foreigners making quick trips to Japan from China were allowed to purchase foreign currency to the value of Y.2,000 at_pre-hostility exchange when the U.S$1 was equivalent to Y350. Such purchases are only allowed for legal business purposes.
A secret bourse, however, was set up in Japan where foreign currency was sold at the rate of ¥4.50 to Vast Profit Made The arrested men were alleged to have dealt with the organization behind this secret exchange, buying up all available United States currency and later re-selling in Shanghai with profits of more than $1 on each U.S.$1. re-sold in China.
Police said that the ring netted profits of nearly Y.1000,000 during May and June only.
The arrested men will be charged with undermining national currency and dealing on an illegal market contrary to Japan's current wartime economy laws.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.