The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1882-04-13
The VOxeI & Co. swindIe.

Boston, IL The Journal. tomorrow
morning, will say concerning the China
frauds: The firm of VORel Bros, Hong
Kong, had succeeded IN making for itself
quite reputation in the general trade
between China and America and Eu.
rope, often in cutting under the market.
but Pre,erving strict integrity in their
dealings, until within few months. The
first Instance Of sharp practice brought
Ag.inst them is the expedieht they adopt
ed last year On one or two occasions
iary bought IN lump vessei and cargo,
and rum. dlately offered to sell in
New York The staple goods the ves-
lis contained 81 cost and freight.
Such off were OF course quickly
snapped up ard New York merchants
awaited the result of their bargains, bat
wren tie vessels arrived, they were
called upon to paw, as freight, sum
almost large enough 10 buy the ship and
certainly sufficient 10 bring the cost OF
& ,ods up 10 full market rates. More re-
Gently the firm Adop ed methods more
rRnkly II egiLimAIe Dealings in the
Chinese trade are made by means cflet-
tiers Of credit. The importer obtains q
latter f credit from some well-known
banking house. 1t is sent to Hong
Kong and cGshed by local bankers, when
accompanied by the proper vouchers Fl
shipment. Merchandise shippers thus
on board the vessels. Late in 1881
ordered, by cable, from Vogel,
Bros.,. q cargo OF sugar stating a tele-
graphic letter Of credit would be sent IS
don bankers to that effect. Vogel Bros.
Immediately shipped q cargo of Chinese
sugar of poor quality, it is stated, and the
local banker paid them the Erice ofcable
order with bills Of lRdipg. Ten days
later telegrsphic letter OF credit was re-
ceived from London, whereupon Vogel
Bros immediately shipped . second
cargo and successfully negotiated the
dead letter OF credit with another
Hong Kong banker. Meantime tele-
graphic orders and bills Of lsding were
sent to London for collection And the
bankers knowing tee cargo lad arrived,
cashed it, but by next steamer came the
real letter Of credit which the banking
house WAS obliged to cash, it being gen
rine, the loss, therefore, Eel upon the
banks, the cOnsignees refusing TO accept
the second cargo. The next victims we're
European silk merchants. The Eaglish
and French silk trade with China is
large and the field for Vogel Bros. Oper-
AtiOns was quite extensive. They received
in all during the first two months Of the
present year orders for about 1900
bs es first grade silk. Payment WAS re-
ceiVed before sh pment 10 all cases, the
value of the goods being $500 per bale
Within = short time the goods reached
their destination. Bales were found to
be made up Of outside d'essing fourth
grade silk, filled with shavings, valued
at about $40 PEI case. Estimated
los 10 English and French
merchants By this fraud amounts to
100000 There is said to have been
trouble also over large C 'nsig m snts OF
campbor which Vogel Bros sent TO =
New York house, and which resu ted 10
quite q serious loss to the importers. In
the case of cargo of henp received on
the Richard Robinson, and 10 which the
firm Of Cyru. Wzkefe s. c.. is one of
those princIpa y interested. The oues-
ton of p scir z the loss is an cpel one be-
tween the importer and the banker,
if the letter of credit called
for the delivery Of hemp and this
letter WAS cashed on delivery Of mating.
Il is claimed bankers are responsible for
making wrong payment.