In the Oct. 23, 1969 TV episode of Ironside "Seeing Is Believing" Chief Ironside quotes Charlie Chan as having said: "When a butcher puts down his knife, it doesn't make him a Budah."
Did Charlie ever say such a thing? I don't recall such a quote, but then I'm less familiar with things Roland Winters, J. Carroll Naish or Ross Martin might've said then Warner Oland and Sidney Toler whose pronouncements I think I would recognize.
You are correct! Charlie Chan never uttered that aphorism. However, it is but another reference to Charlie Chan that can be found spread, like a tasty seasoning, throughout our culture.