EX-LORD MAYOR OF LONDON SUED BY BANK OF PORTUGAL

Star (Christchurch), Issue 19236, 25 November 1930, Page 7

EX-LORD MAYOR OF LONDON SUED BY BANK OF PORTUGAL

Attempt Made To Recover £l 5 115,000 Lost Through Printing Bogus Notes

(United Press Assn.—By Electric Telegraph.—Copyright.) (Received November 25, 1.30 p.m.) LONDON, November 24. As a sequel to Portuguese bank note frauds in 1925, the Bank of Portugal is suing Waterlow and Sons, London printers, in the King’s Bench, claiming £1,115,000. The banks’ counsel said that a Dutchman named Marang, who later was discovered to be a member of a gang of international forgers, went to Waterlows with a letter of introduction from a Dutch firm and saw Sir William Waterlow, ex-Lord Mayor of London, who was then chairman of the firm. He told a story which, the bank submitted, -was incredible. It revealed a plot so full of leaks and holes that it was amazing to find that it was successful. Marang said that a group of financiers had decided to assist the Portuguese colony of Angola, which was financially embarrassed. He produced documents, whi<sh turned out to be forgeries, authorising a Dutchman named Reis, on behalf of the syndicate, to print notes to the face value of £2,000,000, and also the Bank of Portugal’s authority for these. Specimen notes were attached. The documents showed portraits of the poet Devos. Waterlows pointed out that another firm had printed the specimen notes, but Marang said that the Vasco da Gama notes, which Waterlows printed for the bank, would be acceptable. Marang impressed upon Waterlows the need for secrecy and all correspondence with the bank of Portugal, except one letter, passed through the hands of Marang, who, with his associates, forged replies. Meanwhile Waterlow’s agent in Lisbon warned the London house that the Bank of Portugal had not authorised the issue of colonial notes, and also that ;

many rumours were current, regarding which it was usafe to write, but Waterlows ignored the warning, and delivered the notes, after -which Marang ordered a further £7500. All the notes were printed in series, and were identical with the authorised issue, resulting in the bank being unable to distinguish them. Not all of the £580,000 notes printed were circulated, but the bank paid Marang’s notes to the value of £1,706,000. Eventually they were forced to withdraw the whole of the Vasco da Gama issue. Counsel added that Reis and another were sentenced at Lisbon to twenty-five years’ transportation. Marang had been sentenced to two years’ imprisonment at The Hague, but in the meantime had disappeared. The case was adjourned.