The Express.
London, England, 1864-01-18 00:00:00

18, 1864.

COMMERCIAL FRAUDS AT SUNDERLAND.

It is our painful duty to record the facts con-
nected with one of the most extraordinaarryy frauds ever
known in the commercial history of tlnederlend, perpetra-
ted by one who up to the day of his death was widely re-
spectid as a merchant and as an apparently sincere and de-
vout auntie°. On New •Year's Day, Mr. Thomas Key,
merchant and shipbroker, dropped down deed is his own
Louse, in John-street, Biabopwearmouth, within two hours
after he had left the devotional services of " watch night"
at the Wesleyan Methodist Chapel. Deceased was the
principal member of the well-known firm of Riches, Kay,
and Mershall, shipbrokers and coal exporters, whose offices
are in Ens; them-street. He was also a prominent member
of the Wesleyan Methodist body, and a regular atteoder at
the chapel et that denomination is Fewoettstreet. His
venerable appearance, blandness of manner mid the mutt-
monious air he assumed had their intended effect, for Mr.
Kay was not may generally respected, but his partners had
the most implicit faith in his iotegrity. They allowed him
to keep without question all the important documents of
the nem, the books, the key of the safe, and to manses the
tanking account, and even when they were wishful to smear-
tate the state of their affairs they allowed him to plead ill-
ness as au excuse for putting off the evil day of accounts to
a mole convenient season, without having their suspicion
aroused in any way whatever. The news of the man's pain-
fully sudden death even war received with astoeishmentaed
sincere sorrow, and his remains were interred with every
token of attectiocate regret. It was not until they turned to
the necessary settlement of partnership and busmen affairs
that his partners and friends made the startling discovery
that the deceased had bees carrying on a fraudulent sys-
tem of obtaining nub to an unknown amount by means
of fraudulent bills, in which the signatures of persons
dealing with the firm were used as acceptances without
their knowledge or consent. His earners, who expected
the firm was clearing about 2,01/01. a year, have been well
nigh rained by this deceit ; and instead of a comfortable
balance of 4,0001. in the hands of their backers, they found
but 1,5004, which may in ell probability be cocidemeed oa
account of bills in the buds of the bank. The way in which
deceased effected the fraud was this. It is well knows
that ship captains are in the habit of drawing *deuces
from the merchants or brokers who freight their vessels, is
order to pay bills and port charges, and of receiving various
gratuities. As the firm of Riches, Kay, and Marshall did
a pretty extensive chartering bunnies, such advances and
ray meats were often made, end almost invariably by the
deceased. The person to whom be paid an account was sure
to be entertained with an interesting 000verrtion on reli-
gious or other topics, according to taste, the inisoioos
merchant in the meantime folding and turning about a
piece of blue paper, with an apparently careless sir. On
the paper ware pencilled a few words of receipt for the
amount advanced, and having a pen handed him at same
stegeof the proceedings, the unsuspecting captain readily
"put his name down," as requested. The deluded recipient
of the advance basis( taken his departure, the wily mer-
chant was then at liberty to unfold his paper, which easalued
the form of a bill stamp, and the pencilled receipt being
duly obliteented, the paper could be filled up to any
amount, the siguatarepf the person who had received the
advance appearing across the paper in the form of an se.
ceptanos. Such wee the repute of the firm that this sort of
paper would be discounted to any amount by the basks,
aud &siestas the bills became due they could be sully re-
placed by negotiable acceptances of the same character.
Thus it is not kisown what amount of bills of this kind
may be reunite, for on the opening of the safe, after Mr.
Kay's death, there were found no fewer than 150 blank bill
anions bearing the names of various parties who had signed
them innocently in the way we have already indicated.
The stamps were principally of le. and 2a each, and they
were oo doubt intended to be tilled up and passed off as
genuine Lille, so that deceased would have been able to ob-
tain almost any amount of money from the dis-
counters. It is impossible to say to what extols' this sys-
tem might Wive been carried tint fee its interruption by
the death of the perpetrator, but se the steps in mime"
are said to be gradual, but to follow feel, a longer conti-
nuance of the fraud might have produced ultimately a
commercial catastrophe of great magnitude. The painful
revelations we have described fell like a bombshell among
the commercial public and those who knew Mr. Kay, and
besides the partners, many of deceased's intimate friends
anal relatives, it is said, will be heavy sufferers by his cow-
duct. It is reported that me gentleman who owned ves-
sels along with deceased received a dishonoured bill on
New Years Day, and on hurrying to the office to ascertain
the cause of its non-psyment was astonished to find Mr.
Kay was dead, and still more astonished, no doubt, to tied
afterwards that deceased bad been guilty of such fraudulent
Vransectioas. There is another story, to the effect that Mr.
Kay got a well-known and experienced solicitor to make
a will, disposiog of a large amount of property with much
form and pomposity, and on the strength of that easily in-
duced the solicitor to lead him 2,0001., or some similar
amount. Fortunately, however, the legal gentleman is
question obtained back nearly the whole of the amount. A
' rumour has been current that deceased must have com-
mitted suicide owing to the state of his affairs, and the
probability 3f a speedy exhumation of the body is talked
of. We believe, however, that the come:acted on the
doctor's certificate, which was quite satisfactory and con-
clusive as to the cause of death, and therefore it is sot
likely that the inquest will be recessed. It is generally
supposed that the realisation of deceased's estate will cover
all claims against the firm that may arise through deceased's
cures of conduct.—Nearside Chronicle.