BOWRONS IN COURT.

Dominion, Volume 4, Issue 1153, 14 June 1911, Page 8

BOWRONS IN COURT.

ALLEGED EXTENSIVE FRAUDS. THE LONDON LEATHER TRADE SMASH. The English papers to hand this week contain further particulars of tho charges against tho partners in tho English firm of Bowron Brus. "Tho Times" states: At Tower Bridge Police Court, London, on .May 3, John Allan Bowron, G3, and Sidney Bowron, -10, leather manufacturers, of Kirby Street, Bermondsey, together with Thomas Loonan Knight, Gl, wharf foreman, one of their employees, again appeared to answer charges of "conspiring between March and November, 11)10. to defraud tho Right Hon. Charles Bootli and others, trailing as Messrs. Booth Brothers, skin merchants, of 15 ami l(i Railway Approach, London Bridge, of •£28,070. Advances on Consignments. Mr. Travcrs Humphreys told the magistrate that tho books and other evidence had disclosed an elaborate and somewhat complicated system of fraud, as a result of which several firms in the skin trado had been defrauded of large sums of monev. He would be near tho mark if he said that .£IOO,OOO by no means represented tho loss to the trade by tho methods adopted by tho defendants, and similar to those used in this case. The Bowrons carried on business as tanners ill London and at Crayl'ord, having a tannery at Crayford, while in London the.v were also importers of sheepskins from New Zealand. The skins were received in London, and were sent to the establishment at Crayford. There they were sorted, and then, witli tho assistance to some extent of Messrs. Booth, (hey were sent to America and sold. For a great many years the practice had been that the Bowrons_ would have invoiced to them lrom New Zealand a quantity ot skills, and would go to Booth's for a loan on the skins, which were then oil the high seas. The request would be accompanied by p. consignment note and sufficient particulars to identify the casks containing the skins. In practically every case Messrs. Booth advanced tho full amount asked—abont !)t) per cent, of the value. Tilt Bowrons would give delivery orders on the Phoenix Wharf Company, the owners of the Phoenix Wharf, and later the delivery orders would bo exchanged for warrants issued by tho wharfingers and signed by Knight as manager for the Phoenix Wharf Company. The warrant would bear tho words, "This warrant is tho only document issued by me as the legal symbol for those goods." In order that the goods might bo taken to Crayford for sorting the , Bowrons used to exchange tho warrant for what was called a trust certificate, and when they came back 'Messrs. Booth, shipped them to New York, and there sold them through their agents, accounting to Mes=rs. Bowron for the price they had made, less the amount they had advanced, with interest and charges. • On March IS there were some 800 casks of "grains." for which Messrs. Booth and Co. held wan-ants which had been issued by the Phoenix Wharf, and for which no trust certificates had been issued. On those casks Messrs. Booth had. advanced .£'23,67ft. At that tiuio it came to the knowledge of Messrs. Booth that a judgment had been obtained against Messrs. Bowron, and, as a matter of business, it was thought desirable to send to tho wharf to ascertain whether the casks were there. The clerk who went down produced the 21 warrants which the firm held, and Knight (old him that lie had not the casks. The meaning of that became apparent a few days later, when the Bowrons filed, their petition, as Bowrons and as the Phoenix Wharf Company. If Mossr s . Booth had had the least idea that the Phoenix Wharf Company was merely another name for Bowron Brothers they would never have advanced a shilling on goods, because their sole security was tho. belief that the warrants were issued by an independent person;

The Case Against the Wharf Foreman. The case'against-Knight (counsel continued) went a great deal further. Up to August, 1910, the goods had been removed by Messrs. Bov.-ion to their- works ■at Crayt'ord," but after August 10 there was a new system. As typical, counsel dealt with a consignment of 51 casks landed on September 28, ex the steamship Rimutaka. Warrants wero lodged with Messrs. Booth against an advance, and on tlio same day a warrant for 50 of the same casks was lodged with Messrs. A\ ailasli, Hcuniann ■ and Co.—with whom Jli-ssrs. Bowron had had considerable dealings—as security for an advanco of i£2ooo. Two days later John Bowrou and Knight called at tlio place of business of Wallach, Heumann, and Co. and gave a warrant for 49 casks of the same 51, in exchange for a warrant for goods which were supposed to have been in stock for a longer period. Further, on September 28 'Messrs. Bowron had an advance of .£750 from Messrs. Stettauer and Wolff (who also had been making largo advances), and gave a warrant for a portion of the consignment, so that the one lot of casks was made to do duty four times over. ' None of those firms ever got. the skins. The 'casks bad been traced-21 to Cravford and 30 to a firm of tanners named Cheverton. Before lliey went to Clicverton the marks and numbers on the casks were altered so as to mako it apDear they wore ex Minero' or ex Star of Scotland. The system of altering marks appeared to have been generally adopted, this work being done bv a. man named Jones, who acted under Knight's instructions. Jone3 used to make a note when ho altered the numbers on casks. His daughter,. Miss Jone?, who kept the books, noticed thatduplicate orders were bcincr issued, and mentioned the matter to Knight. The latter told her it was all right; that the earlier warrants would returned, Later, Miss Jones made out a list of duplicate orders, and Knight then c aid, "I must spee.k to Mr. Bowron." When he came back Knight said, "I have spoken to him, and he says your list must be wrong." Letters found at tlio wharf (counsel added) showed that the alteration of numbers was done under the direction of John Bowron, and Vi one lettor he wrote, "When yon re-mark, do it with black varnish, as it dries quicker." Mr. George Jlacaulay Booth, a partner l'n the firm of Messrs. Booth and Co., described. the method'of business as between the firms. Advances wero usually mado on from 30,000 to 35,000 dozens of skint annually, tliesj, after sorting and grading, being sold in Now York. In making advance;, Messrs. Booth gavo Bowrons tlio advantage of money at the same rate as that at which they could borrow, and the commission (hey charged was 4 per cent.

The accused were remanded on bail— .£2OOO for each of tho Bowrons and .£SOO for Knight.

On the following day Claud Frederick Litlle, commercial clerk and bookkeeper to Messrs. Booth, said that 011 March 15 ho went to the Phoenix Wharf to check the goods unon which his firm had made advances. Meeting Knight he produced the warrants mid stated his mission. After a little hesitation, Knight said, I can t show you the goods." "Why?" the witness asked. Knight answered, "Bceauso the roods are not here." To further Questions Knight renlicd that Bowrons had had the goods—"They have lir.d the lot."

Minnie Isabel Jones, bookkeener at the wharf for ten years, stated that tome time last year she noticed that duplicate warrants wcro being issued.