Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-04-11
An Exporting Firm of China Cheat Their
Consiguees Out of Millions of Dollars
Worth Of Hemp and Silk Othe r Swindles
and SwIndlers.


ture. Several New York and Boston firms
have received consignment of hemp,as they sup
posed, by the vessel. They had sent letters of
credit, aud purchased through banking houses
as is customary in the trade. large quantity
of hemp, was to be worth nearly $50 per bale.
On opening the cargo Saturday it was found to
consist principally of Canton matter, worth
less than $50 per bale. Meantime steps to ap-
prehend the head of the house at Hong Kong
by means of cable orders to arrest him, re
suited in the receipt of dispatch saying he
had sailed on the last steamer, probably for
France. Detectives in the latter country en-
deavored to find him at the time he was ex-
pected to arrive, but he has been traced
1t is believed to Italy. His capture is
well nigh despaired of, although pursuit is be-
ing made as rapidly as possible. The silk
much more than 500 per bale. 1t was paid
for at the rate of nearly $500. The losses to
cOnsignees or the concern thus far reported
amounts to $500.000.
OneBoston firm received seyenty-fve hundred
bales, of so called hemp by the Richard Rob-
insOn and it was worth about one sixth the
amount paid. A thorough investigation OF
affairs is being made and more definite state
ment will soon be ready.
VOICES FROM THE VICTIMS.
New YORK, April 10.-Mr. L. Rechnagel, OF
the firm of Rechnagel s. Co., said to have
been swindled in the cargo of the vessel Rich.
ard Robinson, said this afternoon: We are
disinclined to talk of this matter until some
step is decided upon by the several firms in.
terested in the matter and this cannot 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
of ~ q ocoprfoinQd
til the cargo is all out. We never purchased
any 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 book. Captain Smith signed
for the hemp and mating of the cargo
under the general head of merchandise"
something, think, he should not have done.
What We Will lose 1 do not know, but, of
course, we will lose.
The firm of Burgess, owners of the vessel,
refused to say anything about the matter
further than they knew Vogel & Co. to have
been engaged in somewhat similar crooked
transaction in December last, and that they
were satified this last business was fraudu.
lent.
BosroN, April 1O.-One firm in this city
mentioned as having been vlctimized by
Vogel & Co., is that of Cyrus Wakefield d
Co., dealers in East India goods, Washington
SGreeL. 1ulS IT'LL udU d VI O3ovy
bales of hemp by Richard Robinson, but
owing to a lack of knowledge as to what pro,
portion of their consignment is hemp and
what mailing, they are unable as yet to give
any statement of their losses.
THEIR WAY OF WORKING 1T.
BosroN, April 1O.-The firm of Vogel Bros,
of HongKong, has succeeded in making for
itself qaite reputation in the general trade
between China and America and Europe, often
cutting under the market, but preserving
strict integrity IN their dealings until with In
a few months past.
The first instance of sharp practice brought
against them is the expedient they adopted
last wear. In one or two occasions they
bought in a. vessel and cargo OF hemp, and
Immediately offered to sell in New York all
the staple goods the vessel contained at "cost
and freight Such offers were of course
quickly snapped up, and the New York mer-
chants awaited the result Of their bargains,
but when the vessel arrived they were called
upon to pay its "freight sum almost large
enough to buy the ship, and certainly sufi-
Gent to bring the cost of the goods up to the
full market price,
More recently they have adopted methods
more rankly Legitimate. Dealings in the
Chinese trade are made by means of letters OF
credit. Imputer obtains a letter OF credit from
some well known banking house, he sent to
Hong Kong and cashed by local bankers, &C
companied by the proper vouchers Of the
shipment of the merchandise. The shipper
TINS receives payment as soon as the goods
are put on board the vessel. Late in 1881
New York sugar refinery ordered by cable
from Vogel Bros, a cargo OF sugar, stating
that a telegraphic letter of credit would be sent
as soon as instructions could reach its London
bankers to that effect. vogel Bros. imme-
diately shipped cargo of Chinese sugar of
poor quality, it is stated, and local bankers
gave them their price OF the cable order with
the bills of lading. Ten days later, the tele-
grsphic letter Of credit was received from
London, whereupon Vogel Bros. Immediately
shipped a second cargo and successfully ne
Ootiated the real letter of credit with another
Hong Kong banker.
Meantime the telegraph order and bills of
lading were sent in for collection, and the
bankers knowing the cargo had arrived,
cashed it; but by the next steamer came the
real letter of credit, which the banking house
was Obliged to cash. The loss therefore fell
upon the bankers, the consignees refusing to
accept the second cargo.
The next victims were European silk mer-
chants. The English and French silk trade
with China is large and the field for Vogel
Bros operations was quite extensive. They
received in all during the first two monthe of
the present year orders for about $1,000 bales
of the first grade of silk. Payment was re-
ceived before shipment in all cases, the value
of goods being $500 per bale. Within short
time after the goods reached their destination
the bales were found to be made up of an out
side dressing of fourth grade silk filed with
shavings, valued at about $40 per case.
The estimate loss to English and French
merchants by this fraud amounts to $4,000
000.t
There is said to be trouble also over large
consignm. Mt of camphor which Vogel Bros.
sent to a New York house, and which resulted
| in quite serious loss to the importers.
In the cargo of hemp received on the
Richard Robinson, and in which the firm OF
CYRUS Wakefield s. Co. is the one principally
interested, the question of placing the loss il
| an open one between the importer and banker
If the letter of credit called for the delivery oil
hemp, and the letter was cashed on delivery
of the mating, it is claimed the bankers are
responsible for making wrong payment.
The Bold Bond StCindiers.
NEW YORK, April 10.-James Fisk ant
George NJ. Irwin, arrested for Offering for sal,
az Ioeanh Mo- CITY hands sunnosed 70 h.