The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1882-04-11
FRAUDS IN THE CHINA
TRADE.
Boston and New York Merchants Lose
Haavilv

Boston and New York Merchants Lose
Heavily.
BOSTON, April 10.-The Journal says an out
line of the operations of an extensive swindle
in the China trade reached Boston this morn
ing, and the indication s are that gigantic
fraud is about to be exposed. me house OF
Vogel & Co of Hong Kong has done large
business in hemp, silk and other goods oetween
China and America and Europe. very recent
ly the English and French consignees OF the
firm received several cargoes OF cheap, fourth
rate silks in place of first class goods which
had been ordered and paid for. Hardly had an
investigation been begun when the arrival OF
the ship Richard Robinson in New YORK on
Saturday, with cargo from the same house,
exposed an extensive fraud of the same nature.
Several New York and Boston firms received
consignments of hemp as they supposed Dy the
vessel. They had sent letters OF credit and
purchased through banking houses, as ID Gus
tomary in the China trade, large quantity Of
hemp, worth nearly $50 per bale. On OPEN
ing the cargo on Saturday it was found TO con-
sst principally of Canton mating worth less
than So per bale, -
the house at Hong Kong, by means OF cable
orders to arrest him, resulted In the receipt
of a dispatch saying that he had sailed on the
last steamer, probably for France. Detectives
in the latter country endeavored 10 phd hlm at
the time he was expected to Earrive. But he
has been traced it is believed to Italy His
capture is we'll nigh despaired of although pur-
suit is being made as rapidly as possible. The
silk shipped to Europe by Vogel a. Co. is worth
not much more than $40 per bale. lt was paid
consignees of the concern thus far reported
amounts to about 100000. One Boston firm
received 1900 bales of so-called hemp by the
Richard Robinson, and it is worth about one
sixth of the amount paid. thorough inyes-
tigation of affairs is being made, and more
definite statement will soon be ready. The
New York agency of the house is on Pine
street in that city.
The Journal will say in the morning con-
corning the China frauds that the firm of Vo-
gel Bros. has succeeded in making for itself
quite reputation IN the general trade between
China and America and Europe, often cub
ting under the market, but preserving strict
integrity until within few months. On one
or two occasions they bought in lump vessel
and cargo and offered to sell in New York
staple goods the vessel contained at the cost
of freight" The offers were quickly taken up
but when the vessel arrived the merchants
were called upon to pay as freight sum al
most large enough to buy the ship and suffi-
Gent to bring the cost of the goods up to the
full market rates.
Late in 1881 the New York sugar refinery or
dered by cable from Vogel Brothers. a cargo of
sugar, stating that telegraphic letter Of credit
would be sent as soon as instructions could
reach London bankers to that affect Vogel
DiOphOho AtuAhOuioeCiy ottPPOo - S0ASo VI
Chinese sugar of poor quality as stated and
local banker paid him the price on presentation
of the cable order with bill of lading. Ten
days later the telegr Aphic letters OF credit was
received from London whereupon Vogel
Brothers Immediately shipped second cargo
and successfully registered the real letters of
credit with another Hyng Kong banker.
In the meantime the telegraphic order and
bills of Iading we're sent to London for collec-
ton and the bankers knowing the cargo had
HALL Dc k.,E h. afn mr.
came the real letter of credit which the bank
ing house were obliged to cash being gen uine
The loss therefore fell upon the bankers, the
congignees refusing to accept second cargo.
The next victims were European silk m Err
chants whose losses on account of receiving q
low grade of goods in place of first quality as
ordered and paid for are estimated over $4-
100000. There is said also to have been trouble
over large consignments OF camphor sent by
Vogel Bros. to New York house In the case
of the cargo of hemp received on the Richard
Robinson and in which the firm of Cyrus
Wakefield s. Co. of this city is one of those
princi paly interested in, the question OF plac-
ing the loss is an open one between the I'M
porter and the banker. Ii the letter OF credit
called for delivery of hemp and the letter WAS
cashed on delivery OF the mating it is claimed
the banker is responsible for making the
wrong payment.
New YORK, April 10.-L. Rechnagel OF the
firm OF Rechnagel & Co., said to have been
Sw1ndled IN the cargo OF the vesSel 'hlcnard
Robinson said this afternoon 1--WE are disen-
clned to talk of this matter until some step is
decided upon by the several firms interested
in the matter, and THIS cannot be done until
the barge is entirely discharged, which will
not be done for two or three days yet OF
course there is some irregularity, but the en-
tire amount cannot 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
book. The captain "a. Smith) signed for the
hemp and mating part of the cargo under the
general head of merchandise, something l
think he ought not to have done. What we
will lose I do not know but of course we will
lose." The firm of Burgess & Company, own
ers of the vessel, refused TO say anything about
the matter further than that they knew Vogel
& Co. to have been engaged in somewhat sim
liar crooked transaction last December and
that they were satisfied this last business was
fraudulent.