"Health Permitting"
'Mrs, Valentina N. Sotov, widow of the Into manager of the Soviet Tass News Agency, who was charged with engaging in' communist activities, would Teave China as soon as her health permits, if the charges were dropped, This w the Second Branch Kiangsu High Court on July 10 by her attorney, MET.
G." Allman, The request ' was granted and the defendant was quired to present to Court a certify ate to this effect within three days.
Mrs. Sotov was arrested seven hours after the death of her husband at 230 am, on June 30 at the request of the Chinese Police, it being hoged that she was connected with 1 bookstore In Bubbling Well Road where over 20 volumes of books, believed to be communist Ifterature, were seized. She was released on a '$200 bail.
At the second hearing Mr. Allman told "the Court that the ae-cused was unable to attend owing to indisposition and requested It to drop charges as she was prepared to Yeave for Russia immediately atter her recovery. A representative of the Chinese Police Bureau did not object to the request but asked the Court to hand the literature over to the Chinese authorities for examination, 'Mr. C, S. Kum, Assistant Municipal Advocate, also' made no objection to the: request which was then granted by the Court, Sheng-yi respectively on July 0, when the Judielal enquiry into the alleged speculation of the "two officials. of the Ministry of Finance on the cotton yarn market was further adjourned.
'Both Mr. Wu, Director of the Internal Revenue' Department of the finistey of Finance, and Mr, Sheng, Director of the Kiangsu Consolidated tax Bureau, who were oxcarted to Songhai wie previous, night from fanling where they had been placed under surveillance, vigorously denied connection with any. broker oF any transaction on the cotton ex= change.
Mr. Chen Yueh, representing the Ministry of Industry, which launched the rst oficial investigation, told the [Procurator of the alficulty the Ministry had experienced in its tempt to examine accounts and cheques held by banks" and asked the Court's assistance in this connection. Hie then submitted a wrltien statement to. the Court on' the ridings of the Ministry.
The hearing began at 9 am, the courtsroom being packed. sapatity with lawyers, "newspaper mien, business men and brokers.
While Mr. Wen, executive member of the Chinese "Cotton Goods Ex: change, disclaimed any knowledge as who had actually participate the "recent. speculation, Mr. Wang [Hsiao-lai, Government "Supervisor the 'Exchanges, told. the Procurator at It had been widely reporied. on the market that Mr, Steng Sheng-yl nad big transactions onthe market. During' the Investigation by. the Ministry of Industry, he related this to. the Minister Mr. Shad Wen-mel, Vice-Chairman the Cotton Goods Exchange Brok-Jers Association, told the Procurator It was reported on the market that the Broker No. 27 had been acting for the Sheng family. Other brokers said to have been involved jin these dealings included No, 18, No. 35, No. 50, Né. 52, No. 42 and No. 81.
The Director of the Consolidated Tax Bureau for Kiangsu was then questioned, After explaining to the Procurator that he had been pre-! vented from attending the first judi-lal enquiry owing to his absence from Shanghai, Mr. Sheng expressed surprise that his name been Haked with the market manipulations, He said people might have grievances against him and spread wild rumours fon the market,—Sometimes even OfMelals holding "such positions as minister and president were named the guilty parties in these rumours, [Hereupon. the Procurator told him that he had been summoned to Court 'a result of the investigation by Ministry of Industry, and not fon. the strength of rumours.
Mr. Sheng said he did not know the broker named Hsu Mou-chang, but he knew a Mr, Hsu Mou-long who Is He did not not" broker, know any broker and he had knowledge of the Seven Star Ca. which was alleged to be responsible for the manipulations.
Mr. Wu Chi-tang, Director of the [Iaternel Revenue Department, Iikewise denied any part in market transactions. He did not know why the brokerage firm, Yuan Dah, had [put his name on its account book.
Mr, Chen Kong-shan, Broker No. 127, who was alleged to have handled Mr. Sheng's dealings, said the ofclals sister, Miss Shen, the fifth sister, had transactions on the market, but not the official himself. She began trading on the market in February and March this year, and the quanilty of yarn at each transaction amounted to 2,000 or 3,000 bales.
hig written statement to the [Procurator which was made known Inter, Me. Chen Yueh, Counsellor of the Ministry of Industry, named a group of witnesses who had informed the Banistry of the market report which was to the effect that Mr. JSheng Sheng-yi had been carrying on business on the market on a large Mr, Sun Peng-say, shareholder jketage Fim No. 27, had informed the Ministry that the Sheng, Jtamily had installed direct telephone jeonnection with the firm, but this was later removed.
'Mr, Chen further stated that in order to protect officials involved in market transactions and the brokers against Government prosecution, prejeautions had been taken by them to none of these officials' names were put down in black and white jon any document. During the Minis-fry's Investigation, many 'a broker lee trained from giving: detailed information to the Ministry.
Text read from the printed page and cleaned; old type leaves the occasional error.