The Express.
London, England, 1855-05-25 00:00:00

TSB POLICE COURT&

GUILDHALL.
Daniel Mitchell Deanloots and Comm William Gordon,
who lately carried on business at Mincing-lane as metal
broker% ita, were further examined.
Mr. Ballantine appeared for the preelecti
gtr on; Mr. Bodkin
Davidson sad Mr. Clarkson for Gordon.
Mr. Baliasitine having given an outline of the evidence
Ow% to be produced, said Mr. Chapala& was certainly not
going say inquiry as to his conduct, yet one could not
loss sight of the fent that, although Moan. Chapman,
Overend, and Gurney were in possession of fraudulent was.
rusts, instead of proseeuting these parties they allowed them
to carry on business publicly in the City, and thus suffered
them to commit further frauds to a very large mount. It
was deeply to be regretted that a house of such respectability
sad importance had not felt it their duty to denounce men
whom they knew to be swindlers.
Mr. Chapman, who war represented by Mr. Vallings, the
solicitor to Mears. Overend, Gurney, and Co., complained
of the imputations out upon him by Mr. Ballantine, sod
said it was hardly fair to prejudice a case by such statements
before the 'adores was gone into.
Mr. Chapman wee than examined, and said—l wish to
correct an error in my last evidence. In the report in the
Times I am made to say that " Gordon offered me the lease
of the distillery," and that " I had no more deals with
them after the interview in October." With regard to the
first, I did not say it was Gordon who offered as the lease,
nut it was offered. The latter was a mistake of my own. I
cannot say if Davidson and Gordon have referred persons to
us since then, but I know that we have given our opinion
freely of them.
Mr. Philip Vaughan said—l am a partner in the firm of
Freeman and Copper Company, of Bristol, and Cousin-lane,
London. The prisoners were our agents, and became in.
debted to us for about 18.0001., through their misappropria-
tion of our copper. About the 18th of Oct., 1853, they
voluntarily onfessed the misappropriation to me, adding,
that the distillery was producing a very large *come, and
they should shortly be able to pay us our balsam They
gave me their notes of hand and Westminster bonds for
7,6001., and three promissory notes, purporting to be drawn
by Webb for 1,0001, 1,2651., and 1,2661., and they sold me
that these bills were part of a compromise effected
between Webb and his creditors. We had some
warrants of the prisoners' in our possession to the
vane of 17,0001., but they turn out to be fictitious.
Noon of the bills I have named were properly paid. There
wax another massed= on the 16th of February, 1864.
Upon that mud= Gordon said Diadem was in 13graisyhrad
bought ousiderable quantities of barley for the
and had cent home the bills of lading attached to the belief
exchange, se that they could not get the barley ealllllr
bills of ezahange were paid. He also maid the distillery we
in a most finurrhing condition, and that if our house mead
lend him 19,0001., to get posseision of the barley, he would
give us • spelter warrant for 100 taus of spelter, which was
of greater value, sad let us have the bills of lading whoa
they came home. We, however, never got either the
spelter or the bills of lading. They gave us bills of exchange
for part of the amount, and the balance was to go to the old
debt. The first of those bills was not paid. We sent to
the wharf to pay the rent, and we afterwards proceeded
Modest Maltby, the wharfinger, for 2,3001., the wine of
the spacer, and obtained a verdict, but he absseaded *ad
afterwards died in Newgate. When we were trying our
action against Maltby we found out that the otter wan-eats
we held were fictitious. The 18,0001. was contracted lame
soothe before October. 1863. bat the last warrant that wee
deposited with us we received on the 16th February, 1864.
Mr. Yellin' said tram the florid statement made by Kr.
Balleatine the court was led to believe that this debt of
18,0001. was contracted after October, 1863, an assertion
that seriously affected Messrs. Overend, Gurney, and Co.,
whereas it was contracted mime time previous.
Mr. Ballantine said he would repeat it, that the conceal-
thetof the fraudulent character of these warrants allowed
prisoners to defraud their creditors to • very large

anoint.
Mr. William Nicholson, the firm of Nicholson and CO,
rectifiers, Clerkenwell, ad creditors of the prisoners to the
amount of 19,1741., and Mr. Kersey, of the firm of Kersey
and Masterman, solicitors, Buoklersbury, were then d-
emised with reference to certain legal and other transactions
danected with the West Hem Distillery. The luso of the
distillery, part of the security held by Messrs. Nicholson
fee the sum due to them, passed from them to Mr. Kersey
(*goner's solicitor), who subsequently sent it to Cole,
Buthen, on Sept. 20, 1853, tinder an assignment from
Davidson and Gordon. The prisoners were our clients. We
were instructed to obtain possession of the distillery on
behalf of Davidson and Gordon, anii an order was lett on
ay desk to tbtain the lean, which my clerk did, of Mandl
Nicholson. In the beginning of August I was requested by
Gord,a to take all the deeds back to Mews. Nicholson the
neat morning, but he required two mortgage deeds to dam
to a firm. On Cole Brothers becoming bankrupts, is
was forwarded to Messrs. °dread, Gurney, and Co., who,
by Mr. advice, sent it back, with other dome-
nests, to the prisoners, as proper security was sot to ha
oblsised open theca.
Mr. Chapman said when he found the leases bobtailed le
the distillery be refused to aociept them, solely be ass he
woad not encourage drunkenness. (Laughter.) He woad
sweet positively to that. The security would have bees of
ao nee to Messrs. °thread, Gurney, and Co., =loss they
had taken possession of the distillery in their own name, to
which they objected on the ground stated.
Mr. Joseph Hoare (of the firm of Barnett, Hoare, and
Co., bankers) deposed to some transactions with the pri•
savers by
_his firm, who were creditors to between 2,0001.
sad 3,0001. They held five warrants of the rrisoners,which,
on inquiry, they found to be fictitious. Those warrants
were deposited previous to, and re-deposited after, October,
1853. In Mush and April, 1854, the prisoners sent them
further warrants for 4,0001 , and asked for an additional
advance of 2,0001., offerieg us collators' security warrants
for 100 tons or speller. The speller warrants were deposited
with them in Jane, 1854, on consideration of their dissount-
ing Cote Brothers' acceptance for 2,6001.
Mr. Thome. Webb said-1 was the proprietor of the
distillery at West Hem before I became acquainted with
the prisoners. It was arranged that they should Rake
advances to carry it on, and receive and pay everything.
I *seeded two mortgage deeds to Davidson and Gordon,
in July, 1851, on the distillery, and in July, 1853, I received
notice from Kersey and Mammas to pay to Davidson and
Gordon 184,0001. I did owe them a very large sum, but
nothing like that amount. They kept the books and
possession. I did not transfer my entire interest. In
October, 1863, Davidson told me they had =id some of
Freeman end Copper Company's swag, and he wanted
me to break it to Mr. Vaughan, but that gentleman happen-
ieg to come into the room at the time the subject dropped.
I received this diem for 184,7931. 12s. Bd., on the 12th of
October, 1853, sad the consideration I gave the pri-
soners for that release consisted of the three bills
of exchange which Mr. Vaughan has produced.
About the 23rd of October, 1853, Davidson showed
me a letter in which Messrs. Overend and* Gurney
infrmed the prisoners that they had sold the epelter.
Gordonr was then apparently very much alarmed,
and when I saw Gordon sewn he appeared very low spirited,
and said, " Well, I have told Overlaid, Gamey, and Co.,
everything." I asked him what he meant, and he said,
" We have deposited warrants with them, bat cannot de-
liver the speller. bccaus the party from whom we bought
it was not paid, and he has stopped the delivery." Re
also said he had been with Mr. Chapman and Cole until
about 12 o'clock the night before, and that he had been
obliged to acknowledge that he owed Cole 120,0001. I asked
him if he did owe Cde that amount, and he said he did not.
I asked him whet Mr. Chapman bad said, and he said that,
after it was all over, Mr. Chapman turned round to hiss,
mad said he lied always hold him (Gordon) up as a pattern
maa of hasineu bat he wee sorry to find he was a thief.
also told me that Mr. Chiapas= said, "Now, understand
that what has taken place here to-night must not go beyond
these walls." Gordon was very much ent up about it, and
put on his hat sad walked away.
Mr. Chapman wished to this, but was not per-
mitted. He, however, corrected tb • date of the above oca-
venation, which he alleged took pls."' on the 10th, and not
the 23rd of October, 1855, up to whic.ll time (the 10th) he
believed Gordon to be a perfectly upriAbt man in every re-
speet
The prisoners were then remanded.
'IIIGH-13TILIFINT.
Dr. Richard of No. 17, Saville-row,

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