The British Press; or, Morning Literary Advertiser.
London, England, 1826-01-09 00:00:00

EXTENSIVE FRAUD ON THE UNDER-
WRITERS.

A Virginia Paper, the Richmond Empirer, gives the
following sketch of the trial of Capt. Arne(ley, who has
been convicted of defrauding tle underwriters. Sixteen
witnesses from Baatun and two from New York were
examined, and a variety of 11...:uments submitted to the
jury. It appeared that a cargo was put on board of
little or no value; but that false bills of lading were
signed for a cargo valued at about 40.000 dollars, and
insurances effected both in London and Boston. The
shipper of this fictitious cargo was J. P. Froding, then
Swedish Consul at Boston. It is unnecessary to enumerate
the frauds and deceptions by which the details of this
plot were carried into execution. The vessel sailed, and
when in the English Channel, within about twenty miles of
land, the plugs were knocked out of the holes previously
bored for that purpose, and the vessel sunk. The officers
and c►ew escaped to the British shore in their boats, and
entered the usual protest. Frodiog, who was then in Eng-
land, is said to have revived the amount of insurance from
the London offices, and he gave a draft on the United States
to the prisoner for 5,000 dollars. It appeared that the
captain and two seamen were in the plot from the com-
mencement. One of these pervons has been convicted and
sent to the Penitentiary of Massachusetts. The other,
who sailed with the vessel in the character of mate, has
been some time under arrest, and in that situation was
brought before the court here as a witness.
After the destruction of the vessel Amedey went to Bos-
ton, where strong suspicions were entertained of the trans-
action. Ile was apprised of his danger, confessed his guilt,
hut said he had been induced to do what he had dune by
the persuasions and threats of Froding. The person to
whom this confession was made, promised, out of tender-
ness to his family, not to betray him, and he left Boston.
Changing his name, he went to Key West, (Thompson's
Island), where, notwithstanding the disguise he had as-
sumed, he was suspected, apprehended, and brought before
Captain Mix of the navy, then on that station, and by
whom he was brought into the Chesapeake, and surrendered
to the civil authority. To Captain Mix be acknowledged
his real name, confessed the offence imputed to him, but
charged it all to Froding. In his pocket...book was found
the obligation of Feuding to pay bun 9,000 dollars when
the voyage was ended, or the goods sold or otherwise dis-
posed of. Froding, who has been carrying on this system
of plundering the insurance offices for same time, has made
his escape, and is now beyond the reach of justice.
The crime of which the prisoner has been convicted is,
in the eye of the law, of the highest grade of turpitude.
When committed, it is done upon the high seas, in the
absence of the usual means of detection, and in the pre-
sence of no one but the crew, who may belong to the con-
spiracy and share in the spoil. The destruction of pro-
perty and the exposure of human life under such circum-
stances has been thought, in commercial communities, to
merit capital punishment. Without the heaviest penalties
the property of the mercantile class, and the capital of in-
surance companies, would be too much exposed to the
cupidity of individuals. These are the grounds upon
which the penalty of death is attached to the commission of
the offence.