The Chronicles of Newgate, vol. 2/2Griffiths, Arthur
History
The Chronicles of Newgate, vol. 2/2
Griffiths, Arthur
Criminals -- Great Britain; Newgate (Prison : London, England); Prisons -- England; Punishment -- Great Britain
Another set of frauds, which resembled those of Pries in principle,
although not in practice, were soon afterwards discovered. These were
the forgeries of Joseph Windle Cole. This clever but unscrupulous trader
proposed to gain the capital he needed for business purposes by raising
money on dock warrants for imported goods which had no real existence.
When such goods arrived they were frequently left at a wharf, paying
rent until it suited the importer to remove them. The dock warrant was
issued by the wharfinger as certificate that he held the goods. The
warrant thus represented money, and was often used as such, being
endorsed and passed from hand to hand as other negotiable bills. Cole's
plan was to have a wharf of his own, nominally occupied by a creature
trading as Maltby and Co. Goods would be landed at this wharf; Maltby
and Co. would issue warrants on them deliverable to the importer, and
the goods were then passed to be stored in neighbouring warehouses. The
owners of the latter would then issue a second set of warrants on these
goods, in total ignorance of the fact that they were already pledged.
Cole quickly raised money on both sets of warrants. He carried on this
game for some time with great success, and so developed his business
that in one year his transactions amounted to a couple of millions of
pounds. He had several narrow escapes. Once a warrant-holder sent down a
clerk to view certain goods, and the clerk found that these goods had
already a "stop" upon them, or were pledged. Cole escaped by throwing
the blame on a careless partner, and at once removed the "stop." Again,
some of the duplicate and fictitious warrants were held by a firm which
suspended payment, and there was no knowing into whose hands they might
fall. Cole found out where they were, and redeemed them at a heavy
outlay, thus obtaining business relations with the firm that held them,
which were soon developed, much to that firm's subsequent anger and
regret. Last of all, the well-known bankers Overend and Gurney, whose
own affairs created much excitement some years later, wishing to verify
the value of warrants they held, and sending to Maltby and Co.'s wharf,
found out half the truth. These bankers, wishing for more specific
information, asked Davidson and Gordon, a firm with which Cole was
closely allied, whether the warrants meant goods or nothing. They could
not deny that the latter was the truth, and were forthwith stigmatized
by Mr. Chapman, Overend and Gurney's representative, as rogues. But
Overend and Gurney took no steps to make the swindle public, and
therefore, according to people of more rigid principle, became in a
measure a party to the fraud.
Public-domain text, read in full here on John Shaqi.
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