The Sun.
London, England, 1842-08-30 00:00:00

EXCHEQUER BILLS FRAUD.
REPORT.
TO THE QUEEN'S MOST EXCELLENT MAJESTY.
(Continued from The Sun of Saturday.) _
CASE VIII. -
Nos. 7,072, 7,074, 7,075, 7,083-7,085,7,087-7,094
8,437-8,439, 8,440, 8,441. (16 Bills.)
Claimant—Mr. Lewis Levy-.
Series of Holders—Lewis Levy, F. T. De Berckem,
Wm: Mariner, E. Rapallo.
Mr. L. Levy is a farmer of turnpike tolls, and a
lender of money on foreign and other securities. Ou
the 12th of July, 1841, he lent--to Mr. F. T. Dc
Berckem (with whom he had had some previous trans-
actions of the same kind) 5,0001. t.n deposit of instru-
ments purporting to be Exeheqa r bills, and on the
24th and 31st of August following the further sums
of 5,000/. and 10,0001. on the like security. The
period for which the money was lent ex(Teded in no
case a fortnight, and the loans were subjco to recal
by the lender on a few hours' notice, but remained
current as to 16,0001. (4,0001. having been paid off),
until the 23d of October last, at rates of interest from
.pl:+lt2op-an p(eiriiclenit., r. asps forth in
eet
BerckemAr
,sIA. Levy's
c Account,'
pvi.de2n9C4.l•;
for which balance of 16,0001. Mr. Levy retained 16
of the bills (being those now in question). On the
23d of October last Mr. Levy funded 11 of these
bills, and obtained stock for Orem. As to the rest, the
money advanced upon them remains unpaid, though
Mr. Levy has obtained from Mr. Dc Berckem, by way
of collateral security fbr it. certain Colombian Bonds,
as more particularly stated in his Evidence, p. 439.
With respect to two of the bills also which have
not been funded— viz., 8,440 and 8,441, it appears
that Mr. Levy, having exhibited them at the office of
the Paymasters of the Exchequer on the -26th of Oc-
tober last, and having reason to believe from what
passed there that theirgenuineness was doubtful, after-
wards fell into conversation on the subject with Mr. E.
Sherman (a claimant before us on other bills), who
offered to take them off his hands if he would sell
them for 1,800/.; and this offer being accepted by
Mr. Levy, 800/. was actually paid to him in part of
the purchase money. But it has been stated by
both parties in their examination before us, that the
bargain has since been rescinded by mutual consent.
CASE IX. .
No. 6,474-6,488. (15, Bills.)
Claimant.—Mr. Edward Sherman.
Series of Holders.—Edward Sherman, Edward
Lloyd Morgan, . William and James Morgan, E.
Rapello.
Mr. Sherman is a coach proprietor, and having
occasion to make monthly payments in the course
of his business, was in the habit, at the time
when this case occurred, of lending out his
money for short periods to persons on the Stock
Exchange„ on the deposit of Spanish Stock and other
securities.
On the 15th of October, 1841, Mr. E. L. Morgan
(mentioned in Case I.) with whom he had had some
previous transactions of the kind above mentioned (on
Spanish stock) inquired of him if he had money to lend,
and on his answering in the affirmative, a bargain took
place between them on the same day for the loan of
10,0001. by Mr. Sherman to Mr. Morgan, upon secu-
rity, for one week, subject.to earlier redemption, at
the option of the borrower. Mr. Morgan then went-
away to fetch the security, the nature of which had not
been mentioned, and he afterwards returned with
ten of the bills now in question. On his return,
Mr. Sherman said that he should charge him seven
per cent., informing him (as the fact was) that he,
Mr. Sherman, was himself under engagement
to pay seven per cent. to another person in a
transaction in Spanish stock ; and Mr. Morgan, after
some apparent hesitation, acceded to the proposal, re-
ceiving from Mr. Sherman the 10,000/., and leaving
with him the ten bills by way of security.
Almost • immediately afterwards the parties agreed
to enlarge the 10,000/, to 15,0001., and 5,0001. more
was then accordingly advanced by Mr. Sherman to
Mr. Morgan upon the same terms as already stated
with respect to the 10,000/., and the remainder of the
bills now in question were left by the latter
with the former as a security for this additional
advance. These loans both continued current till the
public discovery of the fraud, which was about a week
after the bargain above stated.
Seven per cent was a very high rate of interest at
the time of the bargain, having regard to the nature
of the security ; but it does not appear to us that un-
der the circumstances of the case the consent of Mr.
Morgan to pay that interest was calculated to excite,
or did in fact excite, suspicion of fraud in the mind of
Mr. Sherman,
The money so borrowed by Mr. P L. Morgan was
borrowed by him as clerk or agent to the house of
.Win. and James Morgan, from whom him he received
the bills, and to whom he also paid over the money. •
CASE X.
No. 6,146-6,420. (5 Bills).
Claimant.—Joseph Paice Vickery, Esq.
Series of Holders.—J. P. Vickery, John Bragg,
E. L. Morgan, Wm. and James Morgan, E. Rapallo.
Mr. Vickery, formerly in the army, but latterly
resident for the most part in Paris, wishing to lay out
a sum of money for a few weeks, on
.Government se-
curity, applied to Mr. John Bragg, of the Stock Ex-
change (who had been employed as his broker for two
years previously), to effect this for him. On the 14th
of October, 1841, he put into Mr. Bragg's hands
5,000/., to be employed in the way above mentioned,
and oo the same day he received from Mr. Bragg the
five bills in question, who informed him that he had
lent the money on the security of those bills to the
25th of November (the period of a Consol account),
and that he (Mr. Vickery) was to receive the interest
at 3 per cent. ; but Mr. Bragg did not mention the
name of the borrower, nor is it usual in these tran-
sactions to do so. The bills afterwards remained in
the hands of Mr. Vickery until the public discovery of
the fraud.
Mr. Bragg had lent this money on the same day to
Mr. E. L. Morgan (mentioned in Case I.), under the
following circumstances :—While he was on the Stock
Exchange, endeavouring to employ Mr. Vickevy's
money in Consols, Mr. E. L. Morgan (with whom he
had had no previous transactions, but whom he had
been in the habit of seeing on the Stock Exchange,
and had reason to suppose in very good credit), came
up to him, and after asking him if he was a lender,
said, " I will give you five per cent. on Exchequer
bills," with which offer Mr. Bragg immediately
closed, as it was a higher interest than he had been
able that day to obtain on Consols (the stock he had
in view), though in the course of that day money
had, in fact, been lent at five per cent. on Consols.
He 'handed over the money, accordingly, to Mr. E. L.
Morgan as upon loan to the 25th of November fol-
lowing, at five per cent., and received from him the
bills in question by way of security ; the difference
between the five per cent. and the three-and-a-half per
cent., payable to Mr. Vickery, being Mr. Bragg's
profit upon the transaction.
The loan was obtained by Mr. E. L. Morgan as
clerk or agent to 'William and James Morgan, from
whom hereeeived the bills, mid to whom he also paid
over the money.

CASE XI.
No. 8,403. (1 Bill.)
Claimant.—Thomas John Margrave, Esq. (for E.
H. Tunno, Esq.)
Series of Holders.—T. J. Margrave, R. and W.
lichens and Harrison, E. L. Morgan, W. and James
Morgan, E. Rapallo.
Mr. Margrave is a partner in the establishment of
the City Saw-mills, and also agent for Mr. Tunno,
gentleman of large property, whose monies he is
intrusted to receive and to pay, and to invest from
time to time in such manner as he may think proper.
In the discharge of the latter duty, Mr. Margrave.
from the early part of June, 1839, down to the 25th
of November last, was in the habit of malting loans
to Messrs. R. and W. lichens and Harrison (men-
tioned in Case VI.), and on the 15th of April, 1841,
there was a balance. of 46,6631. 13s. due from them in
respect of such loans, which balance on the 25th of
November last, when the account was closed, had been
reduced by successive payments to 20,663/. 13s. The
state of the account during the interval will appear
from the evidence of Mr. Margrave, pp. 61, 62 ; from
which it results that the several balances which be-
came due between the above dates were allowed to
remain on loans for short periods, continually re-
newed, at rates of interest varying from 2} to 5 per
cent. (as there more particularly shown) and covered
to the full amount by the deposit of various secu-
rities. Amon°. these, Mr. Margrave received from
Messrs. It. and W. lichens and Harrison the bill
now in question, being one of the 60 hills which they
themselves received from Mr. E. L. Morgan from May
to October, 1841, as stated in Case VI., and this bill
remained in the hands of Mr. Margrave at the time of
the public discovery of the fraud.
(To be continued.)

bilOC KING ACCIDENT IN NEWGATE-STIREET.—
On Friday, about noon, as Mr. Thomas Self, livery-stable
keeper, of China-mews, Belgrave -square, was proceeding
in a horse and chaise along Newgate-street, the animal,
a highly spirited one, suddenly took fright, and dashing
off at full speed, the off- wheel of the vehicle became
firmly fixed in that of a cart. The concussion was so
great as to break the shafts of the chaise short off, leaving
the horse at liberty, when he again started off, with the
ends of the shafts dangling by Lis side, and in his pro-
gress knocked down four persons, two of whom, named
Frederick Disney and Thomas Stubb, were so severely
I injured that they were immediately conveyed to St.
Bartholemew's Hospital, where it was discovered that
the ~ne had sustained a dreadful injury of the spine, and
that both the legs of the other were broken, and it is
mut+ feared they will not recover. The horse ran Tito
the General Post-office yard,where it. was secured, with
out having received any injury.
COAL AT NEW ZEALAND. —A specimen of coal
has been found on the north shore of the southern island
near Cape Farewell, at the base of a cliff, where a bed of
coat, three feet in thickness, projected, and which re-
sembles that -of Staffordshire. The importance of this
diseVerY Pc'eds C.ollllPe'rd/f0,491 oYrnqi!

•-•