The Sun.
London, England, 1842-08-25 00:00:00

CASE IL

Nos. 7,065, 8,284, 8,388-8,400 (15 Bills.)
Claimant—Major James Anderson.
Series of Holders—James Anderson, Messrs. W.
and J. Morgan, E. Rapallo.
James Anderson, Esq., Magistrate for Essex and
Middlesex, and Major in the East Essex Regiment
of Militia, happening to meet Mr. J. W. Cook (re-
ferred to in Case I.), with whom he was personally
acquainted, was informed by him that if he (Major
Anderson) had money unemployed, it might be lent
for him, on the security of Exchequer bills, at 41 per
cent., for a period of six months. Major Anderson,
having at that time 15,000/. lying in a bank in
Scotland, at the interest of 4 per cent. only, deter-
mined to avail himself of this suggestion.
On the 10th of April, 1841, he accordingly handed
over 15,000/. to Mr. Cook, receiving from him at the
same time fifteen instruments, purporting to be Ex-
uer bills for 1,000/. each, and also receiving from
him the following note of the transaction :—" Lent
for Major James Anderson the SUM of 15,0001., on
the security of 15,000!. Exchequer bills, at 41 per
cent., till 10th October, 1841.—J. W, Cook, Pope's
Head-alley, 10th Apr], 1841." The bills so delivered
by Mr. Cook had been obtained by him from Messrs.
W. and J. Morgan, to whom he paid over the 15,0001.,
they thus becoming the principals in the transaction,
and Mr. Cook, in effect, their agent only. But Major
Anderson was not aware, until the discovery of the
fraud, from whom these or any other of the bills
hereafter mentioned had been obtained by Mr. Cook,
or who was the borrower of the money thereon ad-

vanced.
A few days afterwards, Major Anderson having
occasion for money, and not supposing it necessary to
return the identical instruments deposited, gave an
order to Messrs. C. and H. M`Rae, his brokers
(without consulting Mr. Cook on the subject), to
sell No. 8,248, one of the bills now in question, which
they accordingly did on the 15th of April following,
and handed him the proceeds, consisting of 5031. 195.,
and an Exchequer bill for 5001. The purchasers
from Messrs. C. and H. APRae were Messrs. Cooper
and Co., who afterwards sold the bill to Messrs.
Knight and Co., who sold it to Messrs. C. and T.
Brown, who sold it to Messrs. Cole and Mullins, in
whose hands it remained at the time of the public
discovery of the forgeries, when it was found not to
coincide with the counterfoil. Upon this Messrs.
Cole and Mullins, and, after them, each of the pur-
chasers above named, in succession, demanded and
obtained from their immediate venders a return of
the purchase money paid, with such interest as would
have been due on the bill supposing it to have been
genuine. And the sum which Messrs. C. and H.
APltae, as the first vendors, were thus obliged to
pay (amounting to 1,0511. Bs. 3d.) they • have since
received from Major Anderson, who consequently be-
comes claimant on the bill.
On the 27th of May, 1841, Major Anderson pro-
posed to Mr. Cook to give up to him one of the re,
maining numbers for an Exchequer Bill for the
amount of 5001., and 5001. in money, which transaction
accordingly took place.
On the 7th June, 1841 (the time for the June ex-
change of Exchequer bills having arrived), Major
Anderson received from Mr. Cook, in exchange for
the thirtec'n bills, which he had still in his possession,
Nos. 8,388-8,400 (part of the bills now in ques-
tion), which numbers had been obtained by Mr.
Cook, as clerk of Messrs. IV. and J. Morgan, 'from
Rapallo, and these bills remained in the hands of
Major. Anderson, until the public discovery of the

.•
fraud.
On the 16th of September, 1841, Major Anderson
inquired of Mr. Cook whether the party who had
borrowed the money was willing to continue the loan
on the same terms, and the answer being in the affir-
mative, the loan was accordingly, on the 21st of Sep-
tember, 1841, renewed until 10th April, 1842, at the
same rate of 41 per cent.
On the 10th of October following a sum of money
being due to Major Anderson for interest on the loan,
he provided Mr. Cook with money to the amount of
the difference between that sum and 1,000/., and re-
quested him to lend out the latter amount for him
(Major Anderson) upon the same terms as before.
Mr. Cook, in execution of this order, handed over the
money on the 12th and 16th October, 1841, before
the public discovery of the fraud, to Messrs. W. and
J. Morgan, and about the 28th of October following
(being after the public discovery of the fraud), made au
entry in his books, by consent of Messrs. W. and J.
Morgan, appropriating to the account of Major Ander-
son the remaining bill now in question, viz.,No. 7,065,
which at the time of such appropriation had been