The Express. — 1864-01-18 (London, England)

COMMERCIAL FRAUDS AT SUNDERLAND.  It is our painful duty to record the facts connected with one of the most extraordinaarryy frauds ever known in the commercial history of tlnederlend, perpetrated by one who up to the day of his death was widely respectid as a merchant and as an apparently sincere and devout auntie°. On New •Year's Day, Mr. Thomas Key, merchant and shipbroker, dropped down deed is his own Louse, in John-street, Biabopwearmouth, within two hours after he had left the devotional services of " watch night" at the Wesleyan Methodist Chapel. Deceased was the principal member of the well-known firm of Riches, Kay, and Mershall, shipbrokers and coal exporters, whose offices are in Ens; them-street. He was also a prominent member of the Wesleyan Methodist body, and a regular atteoder at the chapel et that denomination is Fewoettstreet. His venerable appearance, blandness of manner mid the muttmonious air he assumed had their intended effect, for Mr. Kay was not may generally respected, but his partners had the most implicit faith in his iotegrity. They allowed him to keep without question all the important documents of the nem, the books, the key of the safe, and to manses the tanking account, and even when they were wishful to smeartate the state of their affairs they allowed him to plead illness as au excuse for putting off the evil day of accounts to a mole convenient season, without having their suspicion aroused in any way whatever. The news of the man's painfully sudden death even war received with astoeishmentaed sincere sorrow, and his remains were interred with every token of attectiocate regret. It was not until they turned to the necessary settlement of partnership and busmen affairs that his partners and friends made the startling discovery that the deceased had bees carrying on a fraudulent system of obtaining nub to an unknown amount by means of fraudulent bills, in which the signatures of persons dealing with the firm were used as acceptances without their knowledge or consent. His earners, who expected the firm was clearing about 2,01/01. a year, have been well nigh rained by this deceit ; and instead of a comfortable balance of 4,0001. in the hands of their backers, they found but 1,5004, which may in ell probability be cocidemeed oa account of bills in the buds of the bank. The way in which deceased effected the fraud was this. It is well knows that ship captains are in the habit of drawing *deuces from the merchants or brokers who freight their vessels, is order to pay bills and port charges, and of receiving various gratuities. As the firm of Riches, Kay, and Marshall did a pretty extensive chartering bunnies, such advances and ray meats were often made, end almost invariably by the deceased. The person to whom be paid an account was sure to be entertained with an interesting 000verrtion on religious or other topics, according to taste, the inisoioos merchant in the meantime folding and turning about a piece of blue paper, with an apparently careless sir. On the paper ware pencilled a few words of receipt for the amount advanced, and having a pen handed him at same stegeof the proceedings, the unsuspecting captain readily "put his name down," as requested. The deluded recipient of the advance basis( taken his departure, the wily merchant was then at liberty to unfold his paper, which easalued the form of a bill stamp, and the pencilled receipt being duly obliteented, the paper could be filled up to any amount, the siguatarepf the person who had received the advance appearing across the paper in the form of an se. ceptanos. Such wee the repute of the firm that this sort of paper would be discounted to any amount by the basks, aud &siestas the bills became due they could be sully replaced by negotiable acceptances of the same character. Thus it is not kisown what amount of bills of this kind may be reunite, for on the opening of the safe, after Mr. Kay's death, there were found no fewer than 150 blank bill anions bearing the names of various parties who had signed them innocently in the way we have already indicated. The stamps were principally of le. and 2a each, and they were oo doubt intended to be tilled up and passed off as genuine Lille, so that deceased would have been able to obtain almost any amount of money from the discounters. It is impossible to say to what extols' this system might Wive been carried tint fee its interruption by the death of the perpetrator, but se the steps in mime" are said to be gradual, but to follow feel, a longer continuance of the fraud might have produced ultimately a commercial catastrophe of great magnitude. The painful revelations we have described fell like a bombshell among the commercial public and those who knew Mr. Kay, and besides the partners, many of deceased's intimate friends anal relatives, it is said, will be heavy sufferers by his cowduct. It is reported that me gentleman who owned vessels along with deceased received a dishonoured bill on New Years Day, and on hurrying to the office to ascertain the cause of its non-psyment was astonished to find Mr. Kay was dead, and still more astonished, no doubt, to tied afterwards that deceased bad been guilty of such fraudulent Vransectioas. There is another story, to the effect that Mr. Kay got a well-known and experienced solicitor to make a will, disposiog of a large amount of property with much form and pomposity, and on the strength of that easily induced the solicitor to lead him 2,0001., or some similar amount. Fortunately, however, the legal gentleman is question obtained back nearly the whole of the amount. A ' rumour has been current that deceased must have committed suicide owing to the state of his affairs, and the probability 3f a speedy exhumation of the body is talked of. We believe, however, that the come:acted on the doctor's certificate, which was quite satisfactory and conclusive as to the cause of death, and therefore it is sot likely that the inquest will be recessed. It is generally supposed that the realisation of deceased's estate will cover all claims against the firm that may arise through deceased's cures of conduct.—Nearside Chronicle.