The times. [volume] (Richmond, Va.) 1890-1903, 1891-04-05

NV evidence was not tnen cailcu i'i, ~
Pcrcival talked so carelessly during his exam;
nation that Mr.. Maule told me they intended
to put as few questions as possible 10 MN vi
the trial. and must be prepared to give luiI
evidence of all the facts necessary 10 DC
proved. c.u.- 80
In consequence of Beaumont smiths con-
fesson Ernest Rappallo was taken INTO
custody and committed for trial as an ac-
complce in the forgery. Solar. his master.
had died in ls4O. and Rappallo carried on the
business for the widow. Madame Solar was
clever woman. well known IN theatrical
circles. When the rumors began 70 spIeau
about the Bills circulated by me
two brokers (nOne having up to that
time been actually sold. but merely
deposited as security Tor loans rnseG
upon them, Madame Solar took twenty OF
them (for II 900 each) TO broker TOT SAFE
and got clear on 10 st. Petersburg with the
proceeds. There was some question rs 70 the
completely Of the two brokers IN the frauu;
but as they came toward at once and offered
20 give MI the information in their power,
and TO produce their books. their evidence
against Smith and Rappallo was allowed
On the day before the trial all the witnesses
including myself were in attendance NJ the
London Coffee House adjoining the Sessions
House kewgate in case of our evidence De-
ing required. hut without 1t grand Jury
found o true bill against the prisoners.
On the day of trial-November 1th-Te
kept oil day. for Wilde was engaged as coun-
sci for Beaumont Smith, a fee of 1900 having
leen pad to retain him. But 10 my great
relief Maule came and told me that 1t had
been decided 10 admit Rappallo as Queen 3
evidence and in consequence smith had de-
termined to plead guilty. When asked II he
had ANYTHING TO say against sentence being
pronounced Smith read long paper admit
ting his guilt and stating his compunction
lie was sentenced 70 transportation for me-
was gent to Van Diemcn's Land, and after
several years received pardon, on CONDITION
Of not returning to England. IL was nearly
forty years afterward that heard Of his death
in Van Deman's Land at mn advanced age
After his conviction Beaumont Smith drew
up statement detailing all the circumstances
OF the forgery, and he sent II as confidential
paper 10 Lord Monteagle. il was Kept very
private. bnt Mrs. Smith had copy OF u
which she allowed me 10 read. and from II
give the following particulars:
f. b. Smith was highly connected man, az
have before mentioned. In his youth ne
was often in pecuniary entanglements. ana
his associates. young men IKE himself were
often in the same predicament. They used 70
tide over their difficulties by drawing accom-
mediation bilson each other. After his hrst
marriage Smith led q very different life
but he never got quite beforehand III
money matters. or quite free from ms
old companions. II was just before the
changes
cepted bill for 800 drawn by cousin OF
his. clerk in the War Office. That bill got
into tie hands Of Rappallo. When due 1t
could not be met and was renewed Tor
larger sum at heavy interest. In about two
wears Smiths debts aud liabilities had IN
creased 20 nearly f2,0OO and he saw no
prospect of meeting them. He had
borrowed one sum of C400 from money
lender on q bond at 20 per cent. thus havinGto
nav $50 year TO this man alone. during thls
period Rapallo was continually coming to visit
him ut the Office. ] always dlsllked the looks
of the fellow. but believed that his business
was connected with Sir Sidney Smiths affairs,
which his nephew was arranging.
Rappallo saw heaps Of exchequer bills lying
in our two rooms. and his sharp eye soon de
tected that they were already signed anu
sealed, was the custom when he hIst Nlslt-
ed the Office early IN 1884; indeed, the DIS
only required that either of US should write
in the date to make them complete for issuy
and negotiable instruments. Accordlngle
/ KappalO pointed out 10 Smith that 1t would
/ he easy to raise money on such bills by mere
! " deposting them at bankers lie could
then use the money in profitable specula'lonS
{ the lOnns could be pad on and the DIS
/ DESTROYED without anybody being bit tine
wiser. and 50 they could both make their for
/ tunes. Beaumont Smith resisted for two
years more, but his case became desperate.
/ and in an evil hour he consented 20 do what
] kapDhlio ulgcu, tDpuIn lDt lilut liiu Istri.VN
/ when he could have made use OF signed bills,
Mr. Eden's new regulation having been nitro
] duced. He was therefore, obliged TO forge
/ the signature. In al other respects the bills
were genuine. SO,
The first forgery was in April, 1886, ten bills
| Of & 000 each. bearing date March. 1896.
] These bills We're negotiated by So!ari and
/ pledged TO his bankers. Messrs. Ransom 4
/ Co The bills were not prescntable TIL
/ March. 1887: therefore later IN the year sec
0nd batch for 10000 was made. a similar
amount raised upon them, with which sum
the former bills were redeemed and de-
str0yed BY continuing this system larger
amounts were obtained from time TO time
/ from different quarters, the forged bill being
always redeemed and destroyed before the
time of presentation of bills OF a similar date.
Meanwhile interest had to be pad on the
loans, and the speculations did not always sue
coed. In four years the amount OF forged
! bills had risen 10 upwards of fl7O.OOO.
| When Solar died in 1910 hut little remained
of the money thus raised. IL became also more
and more difficult to find capitalists willing to
| advance large sums Of money on eXchequer
I bills 10 agents Of no very great credit Ike hap-
| palio. Morgan and De Berckhem. II was this
| difficulty that led TO the exposure of the fraud.
The most ineXplcable part of the affair has
/ always been TO me how the money was got rid
/ of between Solari's death IN October. 1870,
/ and the discovery in October, 1871 More
than fl50.0O0 was raised in those twelve
/ months, and the books Of the brokers showed
| that there was no loss from the speculatiOns
entered into during that period. There was
! the interest and other charges to be paid but
those could not have amounted 10 moro
than G25,000; and Rappallo had lent
$4,000 to Louis Napoleon for his
Boulogne expedition. During the whole four
years Smith himself got very little he said he
/ had never had more than =, 900 out OF the
whole amount of 400. 600, the value OF the
forged bills, and he never had been able 10
redeem the f400 bond. RappallO was really
the more guilty man Of the two; but he es-
capped scot free and must have had good
share of the plunder
In March. 1S43. an act Of Parliament was
passed To indemnify the holders of the forged
| bills. These holders were divided into four
| classes. VIZ
l. Genuine holders in the usual course Of
| business. TO the amount of f1s7 coo.
! q Genuine holders but who had perhaps
not used sufficient caution, $40 900.
! 3. Ger uine holders as 10 whom greater
/ doubt WAS felt. AL GOO.
L. The brokers employed in negotiating
| the bills, and about whose honesty there
might be some suspicion.
Mr. Goulburn proposed by resolution in the
! House of Commons that, as 10 the first three
classes. Pertinent should compensate the
sufferers but that the fourth class were not
entitled to any compensation at all. The gen.
eral result was that out of three hundred and
seventy-seven forged Gl,0OO bills (of which
thirty three had been funded before the forgery