The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1882-04-12
New York and Boston Merchants Swim
died Out of Four hundred
Thousand Dollars.
Cargoes of Canton Mating Palmed
Of on the Consignees for
First-clasS Silk.
'The Capture Of the Perpetrator of
the Fraud Despsired of-Fun
Particulars.
EXTENSIVE FRAUDS.

N Extensive swindIe Unearthed i'm the
China Trade-Oyer $780, 900 Involved.
BOsTON, April 10.--The Journal says the
outline of the operations of an extensive
swindle in the China trade reached Boston
this morning, and the indications are that a
gigantic fraud is about to be exposed. The
house of Vogel d Co., of Hong Kong. has
done a large business in hemp, silk and
other goods between China and America
and Europe. Very recently the English and
French consignees of the firm received sew
eral cargoes of cheap fourth-rate silks in
place of first-class goods, which had been
ordered and paid for. Hardly had an inves-
tigation been begun when the arrival OF the
ship Richard Robinson in New York, Satur-
day, with a cargo from the same house ex-
posed an extensive fraud of the same nature.
Several New York and Boston trms received
consignments of hemp as they supposed, by
the vessel. They had sent letters of credit
and purchased through banking houses, as
is customary in the China trade, large
quantity of hemp worth nearly $50 per bale
ION opening the cargo, Saturday, IL was
Hound to consist principally of canton mat
ing worth less than s. per roll In the
meantime, steps to arrest the head of the
house at Hong Kong, by means of cable or
ders resulted in the receipt of dispatch
saying he had sailed on the last steamer
probably for France.
4 Detectiv YES III the latter country endeavored
to find him at the time he was expected TO
arrive but he has been traced, it is believed,
to Italy His capture is we'll nigh despaired
of. although pursuit is being made as rap
idly rs possible. The silk shipped to Europe
by NOgle * Co. is not worth much more
Shan SO per bale 1t was paid for at the
rate of nearly $500. The losses to the con-
signees of the concern thus far reported will
amount to S500,000 One Boston firm re-
ceiyed 81 500 worth of bales of socalled
hemp by the Richard Robinson. 1t was
worth ab91t one sixth OF the amount paid.
thoroU - investigation of affairs is being
kade, and a more definite statement will
loon be ready.
New YoRK, April 10.-L. Rechnagel, of
lhe firm Rechnagel & Co, said to have
been swindled in the cargo of the vessel
" Richard Robinson" said this after
noon 1--WE are disclined TO talk of this
matter until some step is deciIed upon by
the several firms interested in the matter,
and this can not be done until the cargo is
entirely discharged, which will not be for
two or three days yet. OF course there is
some irregularity, but the entire amount OF
nc can not be ascertained until the cargo is
all out. We never purchased goods for
Waterbury & Co. We import for our firm
alone. and sell here. We have some hemp
on the vessel, because that appears on the
mates books. Captain Smith signed for the
hemp and mating. Part OF the cargo is un-
der the head of merchandise, something, L
think he ought not TO have done. What
we will lose do not know, but, of course,
sve will lose"
The firm of Burgess &, Co, owners of the
vessel, refuse to say anything about the
matter further than that they knew Vogel d
Co. to have been engaged in a somewhat
similar crooked transaction in December
last, and they were satisfied this last busi-
ness was fraudulent.
BosroN, April IO.-The firm in this city
mentioned as having been victimized by
VOgel 4 Co. is that OF Cyrus, Wakefield &
Co, dealers in East India goods, Washing
on street. This firm had a consignment of
500 bales of hemp by the Richard Robin
SON" but owing to the lack of knowledge as
to what proportion of ther consignment is
hemp and what mating they are unable as
yet to give statement of their losses.
BosroN. April 10-The Journal to-mOr-
row morning will say concerning the China
frauds:
The firm OF vogel Bros, Hong Kong. had sue
ceeded in making for itself quite reputation In
the general trade between China and America
and Europe. often cutting under the market but
preserving the sricest integrity in their dealings
until within few months The fist instance q
sharp practice brought against them Is the expe-
pedient they adopted last year On enc or two oc-
casiOns they bought in lump vessel and cargo
I'D Immediately offered To sell in New York the
ssAple goods the vessel contained at cost and
quickly snapped up. and New York
merchants awaited the result of theil
bargains, but when the vessel arrived they were
enough 70 bay " the the ship and certainly snfiiceSi
to bring the cost Of the goods up 10 full market
rates. More recently the firm adopted method:
rnC iliQgItmate. ChlnpSs
trade Are made by means of letters of credit
The importer retaiDs a letter OF credit from some
well known banking house. Ii is sent 10 Hong
Kong and cashed by the local banker, when ac
cOmpanied by proper vouchers OF shipment The
soon as the goods are put on board the vessel
Late in 1881 the New York Sugar Refinery ordered
by cable from Vogel Bros. Cargo OF sugar. stating
teegraphic letter of credit would be sent sooT
rs instruction could reach its London bankers to
hat effect. Vogel Bros. Immediately shipped 9
largo OF Chinese sugar of poor quality 1t is stated
and the local banker paid them the price of the
Icable order With the bills of lading ten day
later the telegraphc letter of credit was received
from London, whereupon Voge Bros immediate
ly shipped second cargo and successfully nego
tated the real letter of credit with another Hons
Kong banker. Meantime the telegraphic orde
London for collection, and the banker
knowing the cargo had arrived, cashe'
It, but by the next steamer came the real letter o
credit which the banking house was obliged .
nDon the bankers the cousignees refusing TO ac
cent the second cargo. The next victims are Eu
ropean silk merchants. The English and Frencl
silk trade with China is large and the field 70
Vogel Bros operations quite extensive
They received in all during the first two month
of the present year orders for about 1000
bales of first grade silk. Payment was receive
before shipment all cases the value of the good
peing $500 per bale. Within short time IN
goods reached their destination and the bale
were found TO be made up OF an outside dressin
of fourth grade silk filed with shavfngs, value
at about $40 per case. The estimated loss TO Ell
glish and French merchants By this frau
amounts to 81, ,000, 900. There Is said 70 have bee
trouble also over large consignment OF oampno
which Vogel Bros. sent to New York hou'
and which resulted in quite serious loss to tn
on the Richard Robinson, and in which the fir
Of Cyrus Wakefield * Co. is enc Of those primo
pally interested the question of placing the 10
Is an open one between the importer an Il