Evening star., 1922-05-07
.CH|NA SW|NDLED,
IS OFFICIAL VIEW
BY WILLIAM r.. GILES.
Special Correspondence Of The Star and
cago Daily News

BY WILLIAM r.. GILES.
Special Correspondence Of The Star and Chi
cago Daily News.
PEKING, China. March 80. The
greatest government financial scam
dal that has taken place since the
, establishment of the republic devel-
oped recently when Tung Kang, act
| ing minister Of justice and chairman
of the loans commission, in a me-
mortal to the president demanded
| that an investigation be made into
1.-THE accounts Of the ministry of finance
and that the conditions under which
the various loans were issued and the
| manner in which the proceeds had
been spent should also be investi-
gated. In the memorial Tung Kang
states that as chief of the loans COM
mission he has discovered: ~ That
some officials having interests in
banking houses have been doing
speculative business with their own
ministry. (2) That they have loaned
their own money to the ministry at
high rates of interest and under
false names (3) That on receipt of
large bribes they have made unneces-
sary payments. 90 That they have
altered the usual methods of collec-
ton and expenditure. (5) That they
have collected bonds and treasury.
bills at very low prices in order to
have them cashed at the ministry at
their face value. (6) That contracts
and agreements at, terms disadvan-
tageous to the government have been
signed without the approval of the gov
ernment. CD That arrangements have
been made for loan obligations without
the knowledge Of the government. (S)
Thahin order to further their own self
t.h 6y kInts hrvy IL 49,
regarding various bonds and treasury
bills without the approval of the gov
ment."
Wants Guilty Ones ARRESTED.
The memorial then goes on to de-
mand that the guilty parties be- ar
rested and handed over to the courts
for prosecution, and that they be Sc
points out that the accounts and state
ments submitted to the board Of audit
have been delayed months and years,
and that some of the accounts have
never been submitted at all.
The publication of this memorial
fell like a hombshel1 in Peking Off
cial circles, but among foreigners ac-
quainted with what was going on for
years 1t caused no surprise. Corrup-
tion and graft on gigantic scale
have been the order of the day since
the establishment of the republic If
the investigation is carried out with
out consideration Of rank or person,
nearly every minister and vice min
lister of finance who has held office
for the~last twelve years will be i'm
plicated. Minor officials, as well as
the provisional financial officials,
doubtless will find themselves in the
same position.
This is the first real attempt on the
part of any republican official to put
an end to corruption and graft. How
say. The hands of the majority of
the officials will be turned against
him, for so many of their political
associates, relatives and friends will
be involved that 1t cannot be expect
ed that they will submit to the ex-
posure without struggle. 1t is
stated in the press that this exposure
of corruption is nothing more nor less
than political move brought for
ward with the object of trying to
weaken the government.
The vice minister of Justice is said
to have the support of WI Pei-fu.
but the president Is not showing the
keenness expected of him in the mat
ter. 1t is said that some Of his rela-
tives are more or less connected with
some Of the actions complained OF,
and 1t is only natural that he should
protect them 4
In view Of this expose 1t Is easy to
understand why the banking con-
sortium and other people fendihg
money to China demand that they
nave supervision of the expenditure of
the money they advance.