Page:Facts, failures and frauds- revelations, financial, mercantile, criminal.djvu/174

1C2 FACTS, FAILUEE3, AXD rKAVDS. accede to. This was that they would allow the goods thus stored to be seen and examined from time to time, as might be required, by the customers of Cole Brothers. "Oh, surely." Nothing now was necessary but to carry the scheme into fall operation. To Maltby came the admonishment—

Maltby drew his warrants, which were chiefly for spelter, tin, steel, copper, iron, and lead, deliverable to the importer, whilst those of Groves and Sons were made deliverable to the holder from whom they were received, and, accordingly, ran in the name of Cole Brothers. The warrants received from Groves and Sons were taken by himself, or his metal brokers, Davidson and Gordon, immediately into the market; and whether prices were rising or falling, they were sold for what they would fetch, despatch in this part of the scheme being indispensable. This was done without any communication being had with the importers, contrary to the usages of trade. Some days after, when the only warrants entitled to be considered valid had been disposed of, he carried those signed "Maltby and Co., wharfingers," to the importers of the goods they represented, to be endorsed, to be applied in the only way in which such warrants could be of any service.

Cole's further proceedings were taken with a precision and effect indicating how well matured were his plans. This scheme, capable of such mischievous power, admitted of the most exact control, and Cole kept a strong force of clerks, whose business it was to check the double lists of warrants, so that no duplicates of similar goods should fall into the same hands, to intermix the warrants, genuine and fictitious, and to advise him of loans falling due. Aided by the memorandas which were thus made—for few regular books were kept—and assisted by the experience and ability of Messrs. Davidson and