The Express.
London, England, 1853-01-21 00:00:00

THE EXPRESS, FRIDAY EVENING, JANUARY 21, 1853.

Kau) intelligence.

EQUITY COURTS.-YRSURDAY.
rFuss tonMiarsa se vas IWLL.. _

PULL► AMU KUMiIIiIIiDTATIU CUMPAMIT •.

itvinwx.
object of this suit was t., obtain an account of certa.n
moneys the proceeds of the sale of several denominations of
shares of urge amount in the North Brine d% Railway Com-
pany, the property of the York and North Midland Rail.
way Company, which had beta sold by the defendant. It
appeared that defendant had paid the amount of the pro-
ceeds of the shares, which amounted to more than 6 ,
into the York Union Rank to the ereditof ea account which
the railway company had with the bank in respect of these
shares, and the only paint of dispute between the parties
111• s as to the interest. It being alleged on the part of the
plaintiffs that they had been charged with interest at the
rate of Bee pt.r cent. by the bank, which interest would have
been considerably lessened, and, in fact, the balance turned
the other way if Mr. Hudson had psid in the sums he re•
seived un the day that he received them ; and that, on an
account being taken on this principle, there would be a
saw of more than 2,0001. due to them, On the other hand,
it was shown, on the part of the defend int, that he had
paid the banking account against the company, amounting'
to 60aelli., and st was contended on his behalf that there
was a balance of 1,600/. due to bins.
His Honour directed that an account should be taken.
Mr. roller, on the part of the defendant, urged that the
bill ought to be dismissed with costs as far as it sought to
charge the estates of the defendant with a lien. Ibis was
a mere matter of account in wbieh, to make the most of it,
there would be some 2,0001. due to the plaintiffs, and they
bad chosen to charge that defendant, out of the sums he had
received belonging to the plaintiffs in respect of these
shares, had bought the Londeshurough estate, the Newby-
part estate, and his house at Albert-gate, and had regis-
tered the lien in that if Mr. Hudson hail wished to charge
those estates he might have found it difficult to do so.
Mr. It. Palmer, for the plaintiffs, contended that this
allegation hail not increased the costa.
His Honour said he thought, under the circumstances,
the bill ought to be dismissed with costa so far as regarded
the lien.

010,0111 bewalaßtELLolll Sea W. Tu■ RED.
TUE UNION BANK OF AUSTUALIA.
Wu.Atxson e. Critxues. .

This was a motion for an injunction to restrain the de-
fendants, the directors of the trnien Bank of Australia,
from making any division of profits, or teansferriag the
shares reserved for the proprietors otherwise than in pro-
portion to the number of shares held by each proprietor.
The company was established In 1837 as a joint-stock
banking company under • deed of settlement, by which the
capital was to be 500,0001., divided into shares of 251. each,
with power to the directors, v ith the consent of two-thirds in
value ot the proprietors present at any special general
meeting, to increase the capital to any slain not exceeding
one million, by the issue of new shires of W. each, the
right being reserved to the old shareholders to take the
new aba-es before they were offered to the public. The
whole of the original capital was paid up, and by meio-
tic, a passed in 1840 the capital was ineremed to 800,0001. by
an issue of shares, each proprietor ot two old shares having
the option of taking one new share. The whole of the
share.; were thus taken by the proprietors, and the whole
231. on them paid up. In 1841 it was again determined to
increase the capital to a million by the further issue of
shares of 251. each, the holder of four old shares being
entitled to one new share. On these last shares only
21. 103. had ever been paid up or called for. The plaintiff
was the holder in this third class, and filed the bill on
behalf of himself and all other shareholders in the same
class. In 1847 the directors had found it desirable to con-
tract the capital of the company, but being advised they
could not legally do so, but that they could invest the
unemployed capital in the purchase of shares, they d. ter-
mined to buy up all the shares that could be had at par;
and previous to October, 1848, they thus became the
owners, on behalf of the company, ot 4,5.51 shares on which
251. bed been paid, and 824 on which the smaller sum had
been paid. At the generanteeting of 1832 it was proposed
to dispose co these shares at the market price of 421. for
those on which the whole was paid, sad in the same pro-
portion fur the others among the proprietors in pro-
portmn to the amount of paid up capital ; and at
the same meeting a dividend of 6 per cent. on the paid up
capital was declared, and • bonus of fifteen shillings per
share on the shares on which 231. was paid, and in the same
proportion on the shares on which data lesser amount was
paid up. By the 33rd section of the deed of settlement, it
was provide.* as follows : " It shall be lawful for the board
of directors (subject to the provisions next hereinafter con-
tained), to declare • dividend or dividends from time to
timenut of the profits of the company, to be calculated on
a statement to be made to the proprietors at the annual
g 1 meeting, as hereinafter provided; and that it shall
be optional with the board to apply such dividends either
as • bonus to be added to the respective shares,
or u interest or dividend on such shares, or on
the amount paid up in respect of such shares, or
as part beau and part interest and dividend '
or otherwise, as the may think most expedient, and to
divide such dividend or bonus into as many equal parts
as there shall be slums then held in the capital of the com-
pany. By 44th pestle, fall power was given to the direc-
tors to regulate and Nano' the affairs of the company.
By 57th seniors** preprieton, with the consent of the
board of direetare. wen to have liberty to pay in advance
the capital subscribed for by them, and to receive interest
not exceeding fiver, legit ten such advanced capital. By
107th section the sMseMbien as between one another were
to be liable fur the doles said liabilities of the company in
proportion to their abate mid latereet for the time being
in the company, and net *other or otherwise. The bill
was filed by the plaintiff es we of the shareholden of the
Seca series, on which 21. 10► bad bees paid up, ea behalf of
himself and all other shanhisiisas be the eon class, and
prayed that it might be defferod thee tbe plainigf sad the
other proprietors of sees til. shares sf the YW series is
the said company, were waded be share egnally in the
profits of the maid °mussy with the reprise= ef the other
shares therein, according to the umber of show MU by
them respectively ,• sad that ell dividends 111111 bemuses
thereafter declared est sf Ilbe posits ought be be divided
into as many equal parts 'ethers was shores is the our
way, sad not is paper lea M Ohs meant of paid up mgt.
tal in reopen of seek shwa. And that it might be declared
that the shares reamed fir the Freidman ought to be ap-
pavoned amongst the plaint and the ether proprietors of
the new 113 i. shame of the third swift, sad ell the other
proprietors in properties to the &nether of shams held by
each pearieeari and Mafia pawto tho paid up capi-
tal. And that the deffailes% the dinners of the emptily,
might be adenoid Se We the plaintiff sad other
holders of '2.SL awes of Mild Miss who might be willing
to
.tcypt thee. the shesheywileit to t be entitled to on that
principle, the ginietfir pay 421. per share
for thee; apes phiskT4h. had hoes paid, and 41.4.. for
those on whisk IR 10e. had bow paid. Aad for the impute-
tiara before Mod.
Mr. Holt usli lir. Speed, for the plaintiffs, altar going
through the wanness of the deed and the resolutions, as
before set eat, esaileadod that the 33rd section directed the
dividends to be paid according to the number of shares
held, and not on the paid-up capital; end that as the 107th
*nun nude each party liable for the losses of the company
to the assent of his " share or interest " in the concern, it
was only reasonable that he should share the profits in the
nu role. That the proper tonne would be to calculate
interest on the paid-up capital, and then to divide the rest
of the proem among the shareholders in preportioa to the
number of shares held by each. That the ahartholders
might be sailed on at any time to pay up the rest of the
capital, and could net (hinters make advantageous use of
the money.
Thu Solicitor-General and Mr. Selwyn for the directors,
untended that the proposal of of the plaintiff was contrary
to all natural justice, as well as to the provision of the deed.
The 39rd section gave power to the directors to pay either
as interest or dividend or bonus, for the very purpose of
meeting such a we as the present. When the same amount
was paid up on each share, it wee immaterial how it was
paid, hut if an unequal sum was paid up, then the directors
could pay as interest and not as house ; and that the plain-
tiff had for ten years seirdeseed is the present mode of
merest.
Hr. Hu ss% Q.C., and Mr. Hohhonee, appeared for the
old shareholders, and contended that the suit was defective,
not having the different clues of shareholders' property
represented.
Mr. Holt, in reply, argent that there had been no ac-
quiescence, but the prolta had only lately become sal&
Meat to make question of any great importance. He then
offered, on behalf of the plaintiff, to waive any answer in
the suit. and take a decree upon the prawn argument.
The Vice-Chancellor inked if the other side would do the
same.
Mr. Selwyn declined to take that course.
His Honour then said-1 do not think I should come to
say different rionelssion by reserving my judgment, and
therefore shall proceed to giVii it at once. I by no suns
think the cue so clear as has been asserted by the defend-
ants. It was said by the dehadants that it was almost
absurd, and would be so °Geoids/id in the City of London,
that a cue should be argued to ascertain whether parties
who have contributed 21. 10s. should receive the same divi-
dend as thou who have contributed 261. 1 think the ques-
tion cannot be reduced to that. I go with the plaintiffs
to a certain extent I think the capital was here intended
to be divided
binto shires
sheen of wok with
thee to increase
the capital y selling sew same
and that the shares sue set be be split into freeness ; and
therefore ace • sompaay Is Ala a party
.aney hold what
amount he likes ; bat as Mnum be definite
shares of a definite saminst. L waft _ additiesal shares,
as in 1841 and 1842, the empty previous tbat the new
shares should be of the sues sedeaat a• weld um, sad it
is admitted that every ems Odium shareheiden is entitled
to have all the same privileges as the old shareholders, ex-
cept u
an
didemi& Thiene the argument, pat
the case o an ordinary psetaership wline A and B Wier
into partnership with ampital ef WNW, ugh to advance am
equal share, but seder as egreemest that A wed set
pay up his rut until afire MIN& Can any ono debt that
that pones would be • wow sad satinet le shin the
prelate suite liable for ths leems,lheisgb &re of hiseepital
was pad up osemet dbeingahh that eels green the
amtpvieoW It libel the se as if they bed
I seassit to Wows a shareholder • I have malmehod the
whole of my NOW, but, as you do sot want the messy, I
will sot pup ep. Bat it I said, leader skate ICJ, par-
ties are °sy beloroned to the annual ef the paid-up
sepital. I smut admit that; I WA each is
interested to the whole amount of his &sus. Therefore
I agree with the plaintiff so far, sad should have
expected to find that as he would have to share the lees
equally with all the other eltareholden, so he would shags
the profits. This, however, taut depend oa the deed, sad
PM es ad motley wig* I awn eaciains, aided by sink

other lights as the rest of the deed throws upon the sub-
ject. In construing that clause there is a ditlicuity, and
until I had the benefit of the argument, I did not see the
whole bearing of it. Parties may, of course, enter into
any e ditract they phase, and the court must decide here
upon the clause what that contract is. My opinion
upon it is open to revision, but I cannot come
o a conclusion upon it in favour of the plain-
tiff. I admit there is much that is unreasonable in
making a shareholder liable to lees equally with the holders
of the 251. share and not to the profits; but there is also
some amount of unreasonableness on the other side. lit
enters into the contract end say., " I agree to be liable to
the loss, and I em content to be unable to force the payment
of the whole of my capital; and if the director. have no
need of the money I agree to be placed in such a position
that I am never to be entitled to the whole share."
No doubt that is a position which you must see
clearly to have been intended before you adopt
it ; but it is not altogether unreasonable. The
shareholder may not wish to pay up all. lie may say,
Igo into the market, and I have cash enough to pay (or
part, but not fur the whole. That may be a convenience
to him. The provision is not, therefore, so unreasonable.
The great difficulty in the way of the plaintiff is. that there
is nothing said in the clans' about the rate of interest. Fur
seven or tight years past the interest paid upon the capital
ham been from 6 to 8 per cent., and nothing to limit it to
that amount. Therefore the whole profits may be paid in
interest, and leave nothing for bonus. The clause
provides that the dividends are to be Wien
out of the profits, and a threefold division
is provided for either by paying interest, bonus, or
dividends, bonne is to be added to the shares, the interest
or dividend to bo on the shares or the amount paid up.
The deed clearly looks to increasing the amount of capital,
and authority is given to the meeting to make calls, and this
state of things must have contemplated the making new
capital when all the old shares had been paid up, and then'
there would necessarily arise shares on which unequal
sums had been paid, and then it would become necessary
to pay interest in proportion. This provision In the sec-
tion can apply to nothing but new shares thus created,
and an option is given to the directors of how they will
apply the gross suns allotted for dividend. It may be •
hardship, it may be unrea.onable, but it is clearly what the
section contemplates. Unless I felt very clearly that the
plaintiff was right in his construction of this claire, there
ere other reasons which would induce me to refuse the in.
junction, the result of granting it being that partite would
be deprived of their dividend, whereas the plaintiff, who is
• stockbroker, sad must have had this matter constantly
before him for ten years, and who had his attention particu-
larly directed to it last July, might have filed his bill and
broucht the whole cue to an end before this, instead of
which he waits till a few days before the time for paying
the dividend before he moves. Oa the whole, therefor*,
I have no hesitation in refusing the motion, and I have
given my judgment at once, because in a cue of this sort
it is most probable the matter will not rest here, and it is
desirable that there should be as little delay as possible in
getting the opinion of another court.
COURT OF EXCHEQUER.—TunaDAT.
Menses is Basco.
RISCAVI v. TBALLII.-LIABILITT or lIVIBLNDS.
_ _ _

This acting was tried on Saturday last before Mr. Baron
Platt, when is verdict was given for the plaintiff to the
amount of 311. for goods supplied to the defendant's wife.
The defence set up at the trial was, that Teakle had in pro.
portion to his means—via., 3801. • year—allowed •suMcient
sum to the wife to supply her with all necessary clothing—
namely, 30/. a year.
Mr. B. James now moved for a new trial, on the ground
that the verdict waa against the evidence, and that there
had been an improper rejection of evidence. It ap
that Mr. and Mrs. Teakle, though living in the same
were in fact living apart; that the goods supplied were of
a costly and extravagant character ; that the husband never
saw these goods, and that she was in the habit of ordering
similar goods from other parties, for which several other
actions were pending.
The court, on looking over the bill of particulars, granted
the rule.
Rule nisi accordingly.

COURT OF BANKRUPTCY.—YesmaDay.
Bans II& Com MIMI* H 0110.0171.,
IN RR FRANK CASTELLI.
Imo CAM -

This was the certificate meeting in the ease of Frank
Castelli, merchant, of Bury-court, St. Mary-axe, who had
traded under the firm of "Crtelll, Oiostiniani, and Co."
The bankrupt, alter passing his last examination, had ap-
plied on one or two mieseioas to be heard on the question of
certificate ; but his Honour bad adjourned the bearing until
the proceedings under the joint adjudisetion egainat Castelli
and Giustiniani were before the court. The bankrupts,
Castelli as l Braggiotti, upon this, appealed to the Lords
Justices; and the result was, their lordship granted a first-
class certificate to Braggiotti, and directed a meeting to be
held for the consideration of Caatelli'm certificate by the com-
missioner.
. _ . .

Tbe magnitude of the bankrupt's transactions will be es-
timated frtm the following balance-sheets, which are copied
from the accounts prepared by Mr. Coleman :

OBIT OF TRAWL CAITILLI,

Whose interest under the artielee itommandite,
dated 15th January, 1847, was equal to 3342
trading under the firm of Castelb, Oiustiniani
and Company. The remaining portions of
interest were as follows:
Vincent Cliustiniani •
Jahn Baptiste Oiust niani lO-62
Baverio Cutelli 1
Bryro diustimani J
Leonardo Ouistiniani 4.62

FMDM Francsooviteh Brsiggiotti -63

62-62

of 10. Bury-court St. llarrnsit, merchant, eamMincing
13th January, 1347, to the rd September. 1850:

To monoaidi
Os susiguses•

,5101,916 11 1
131.331 19

U 4.4411 10 11
sus OM rafts% re Nsßrace lora It
err irk arrow (sr moor
of pram Mei rail A.)
T. ardires e.r simor gnu" rid& It is
war I.lllrt rallealairt Is WIN err 15117
re soma et prime bar liars B ) *SAN 0 T
Toplatmorlia::
giS,ITT IS 11
asolairool - lO,OOO 0 0
J. B. Oluddrl
B. coos no B. Olserhud .... 4,000 o I
L. Oluelrlor. . 6.000 0
Be *Wm asirls :
Om* by F. been! r NOW.
Y Mlles to ths abro .... 13,043 17 11

1418,121 H 7
Lois esseat abisopimies
se Ike will al Myra pages
yip serli sysli Limes le F. 47.111 L. UAW 17 II
41,177 HI 11
016,311 1 5
al.

grtl46=l
£1,084 111
Lem mama/ vane of their property
ompodlla mak oast, partook Ur
peewit of tali* sr • to mem to
tkit Mak el ars debtors 104%1 6 9
11.620 1 5
119,672 2 4

Cr= by maims telly ism.
ed. A.
Ditto, partially 'lowed. 8.. w ....... WAN II 9

643,990 1 4
Ditto, held by creditors an useent et
third retie, and &anted from
dobtors robins 101,211 6 9
743,11111 14 1
By amount of (natal invested 1n the I, of Agars*
Mimi and Co., et Galata
By F. Onuelli, ...oast M. . Me f 5
By V. Chetelll, amount drawa oat 17
him
Leas erneleed th• sale of Ilso. die
tetra Jewldlery la 1147

Mill 10 9
By ►. F. Bragglottl, went drawn *dß, 1110..... 919 19 I
By laws as prod'5...
By had debts

'ls4 10 0

79,406 • /

ANKNOIS I I

lIUPPL KKK ?? L BALANCE-SHIRT OP PRANK CASTIILLL
'this sheet eaten.e the transactions of the late partnership
front the time of termination of cornmaridite, viz., Sept. 3,
1850, to date of flat.
Ds.

To ereditore on opts amuse% antaseeptaasee £13,749 11 6
To eredittua for 1111•110C1111 bolding orearity to cover
sane. A 7,037 4 S
10 erg ditors :or &dean& • partly by eieurity, 8 256,117 9 2
GLatislard„ sad Co., sew Arm 4/1,1110 2 1
To atonal aosonnt—
Costalli
T. Ginitioiani
J.ll. Gloadniaal lO,OOO 0 0
J. Castelli arel 11. Ginstiaianl 4,0.0 0
L. Glestinianl . . .. 4,000 0 0
To mutat lent to V. Caeleah sad
paid by him as capital. in additios
to the above 13,2771. 164. lld 13,643 17 11
£34,911 14 7
Loss amount iobarquently transferred
to the credit of the d.ffarst parties
who made anal loam to V. Ciatelll 13,643 17 6
41,671 14 11
--
£360,731 16 I

By debtors, good --
51,793 $ 1
By debtors, doubtful . ......
lova property depckted with. or pro
peril thu pincer s oferlualt or. to
aurae to the credit of eta debtara 84,914 IS 4
3,099 3 lb
By averages 133 13 11
By property 1,133 11 9
Portb,n of balance la des Bark of Esglaad, which Is
charred by other ponies
By property held by (Milt" fully
cov.wed. A
Ditto, partially carried, B .
By property held by creditors se or
*motet third partly% aed dedootsd
from debtors as above 33,334 13 4
-- mem 14 10
By Freak Critelli, account K
Ditto, ergot= drawn out by him. /7,627 10 9
Low Jewellery
7,312 10 9
701 $ 7

By Y. F. Bromfield. almost drawls oat by b.m
by Sauce-
-1341.90e of elute, 3rd Sept, 1830.. 015,014 13
131,61.4 1
597 2 9

Isd debts

147,193 19 $

it3t0,31 Is I
Mr. Lawrance—l am instructed to oppose the allowance
of the bankrupt's certificate. I appear on behalf of Messrs.
Lafuente and Webster, of Liverpool, who have entered a
claim to prove for 6,0001., or thereabouts ; also for Mr.
Lafuente, of Alexandria. The grounds of opposition are
disclosed by the balance-sheet, arising as they do out of the
bankrupt's general transactions. I charge him with im-
provident trading, not only in connexion with the firm,
down to the period of the alleged dissolution in September,
18,50, but with reckless and improvident trading from that
period down to the stoppage on the 16th of August, 1851.
I charge him—taking his own statement as true—with
having dissolved that partnership covertly; with having
possessed himeel of the partnership property, in fraud of
the joint creditors, and continuing to trade on his separate
account ; with having contracted new debts to the amount
of, I think, 400,0001. on his separate account, between
the 3rd of September, 1850, and the stoppage in August,
1861, making the amount of debt now 'tending against the
firm about 470,0001., subject to deductions in respect of secu-
rities, to which I will hereafter call the attention of the
court more in detail. I charge him with having applied,
as appears by the separate balance-sheet, upwards of
60,0001. worth of property, so acquired, between Septem-
ber, 1850, and August, 1851, in payment of the liabilities
of his former partners, in exoueration of those partners,
but out of the pockets and cash of the separate creditors.
I charge him with having, under the false colour and pre-
tence of being a partner in the still subsisting firm of Cri-
telli, Oiustiniani, and Co., there having been no visible
dissolution of that firm, and the trade being carried on
under the same style throughout, with having contracted
them debts by fraud and false pretenees, so as to bring him
within the language, certainly within the spirit, of the
3rd clause of the 236th section of the Bankruptcy Law
Consolidation Act. Then I charge him, though that may
seem a small matter in comparison with the graver
charges to which I have adverted, with having expended
fur his own private use and support, a sum of 2,8261.,
bttween September, 1850, and the date of the bankruptcy; I
there haring been no profit upon the trading during that I
period, but on the contrary, the entire trading having been
carried on at a loss of 60,9051. and a fractioa. The general
charge of reckless trading of course rests on the leading
features of the balance-sheet—the absence of profits, the
continuance of the trading long after he was in a state of
hopeless and irretrievable unolveney, and his commencing
this new trade in September, 1850' without any capital
whatever. I now propose to ask the bankrupt a tew ques-
tions.

The bankrupt (examined by Mr. Lawrence)—l have
been in this country twenty years. I first began to trade in
1836 or 1836, in partnership with several others. (Here
the bankrupt stated the names of the partners composing
the different firms in which he had been engaged, as given
above.) The style of the firm from 1836 to 1841 was
" Cutelli Brothers." In 1841 the new partnership was
formed, under the style of" Cutelli, Oiastlniani, and C 0.,"
which has since continued the style of the firm. Our
bankers from 1847 to 1860 were Measrs. Roberts, Curtis,
and Co. They have always been our general bankers, and
continued so down to the stoppage. We had also bank-
ing accounts with the Loudon Joint-Stock Bank,
and the Bank of England. All those accounts were in the
name of Cutelli, Giustiniani, and Co. The Arm of 1847
was divided into 62 shares, of which I had 33. The capital
brought in was 41,2771., and 15,6331. more was brought in
by me a month or two afterwards. Greater part of that
sum is still owing by me—abort 10,0001. The gross profit
made by the firm between January, 1847, and September
1850, we. 64,217 L, and the losses on produce and, on bad
debts in the same period were 79,4061., leaving a nett loss
on the trading of 16,1891., irrtspective of the partners'
drawings. We agreed to dissolve on the 21st of September,
1860. _ . _

Mr. Lawranee—Did you communicate that fact to your
bankers—either to Roberts and Co., to the Joint Stock
Bank, or to the Bank of England?
Bankrupt—l did not. In the way that the agreement
was drawn up I could not do it.
Mr. Lawrence—Why ?
Bankrupt—l was charged with the fulfilment of certain
contracts that had been entered into; and I could not con-
veniently alter the firm, nor give notice of the dissolution,
while those transactions were pending.
Mr. Lawrence—ls that the only reason you can give for
not having mentioned the dissolution ?
Bankrupt—That was the reason for carrying on the basi-
-1 nese under the firm... . . .

Mr. Lawrence—Did you mention the dissolution to either
of your banken, at any time between September, 1850, and
August, 1851?
Bankrupt—Not to the bankers, because the transactions
pending on the dissolution were not settled. I continued
the bankers' accounts in the old firm, as they stood. I
bought goods in that firm to a large amount. lam not
prepared to state the amount.
Mr. Lawrence—Wes it not upwards of 500,0001. ?
Bankrupt—l cannot say.
Mr. Lawrence—Cannot you tell by referring to any of
your books?
Bankrupt—Not unless I go thoroughly through them.
Mr. Lawrence—Was it more or leas than 500,0001. ?
Bankrupt—That I cannot say.
Mr. Lawrence—Was it 800,0001. ?
Bankrupt—lt might be 300,0001. or 200,0001. or 500,0001.
I cannot answer that. lam not prepared for the question.
I entered all my purchases in my warehouse-book or some
others; but it would take me a fortnight to go through
them.
Mr.

Turquand, the accountant, has gone
through them, sad Rakes the amount 524,0001. ; are you
willing to adopt those figures T.
Bankrupt—No, I am not : but if he has gone through the
book that is enough.
Mr. Manisty—You may take it as a fact that the extracts
from the books made by Mr. Tnrquand show the purchases
to have been 524,0001. in that period.
Bankrupt—The debts, as shown by the balance-dust of
my separate trading, from September 1830 to Amid
1851, amount to 413,8681., including the debts covered by
goods held. I also made Large payments in that period, by
cheques upon my Deakin. The cheques were drawn ia
the name of Cutelli, Giustiniani, and Co. I have accepted
bills for a large portion of the item of 133,4681.
purchases were made abroad, the parties drew upon the
house, and I aeoepted in the name of Cistern, Giudaissde
and Co., between September 1850 and August 1861..
Mr. Lawrance—Did you announce to your ..0 _•
dents, by circular, or in
i any other manner, after fisissarbar
1830, that the old firm was n liquidation?
Bankrupt—lt was announced verbally to a seed Mfg
person'.
Mr. Lawrence—Can you name any creditors of the dl
firm to whom that announcement was made ?

Bankrupt—Lafaenta and Paiquale at the beginning of
1830—to Messrs. Bucker, to Mr. Edelman, and to Le Bre-
tons. I said I was by myself, but I cannot remember the
words I need • but that was the effect of it.

Mr. Lawrancs—Was any circular written to the creditors
or correspondents of the firm ?
Bankrupt—As I said before, in the way the dissolution
was agreed upon, notice could not be given, and no notice
in writing was given. Roberts, Curtis, and Co. are credi-
tors for 14,61 W. They hold security for part of their debt.
Mr. Lawrence—Have you not deposited with them pro-
perty of the new house to cover part of their demand ?
Bankrupt—As I took away from them documents repre-
senting property belonging to the old firm, I gave them in
exchange other documents as a security for their debt,—not
only for that debt, but for any future debt I might have
with them. . _

Mr. Lawranos—That is to say, you withdrew securities
they held of the old firm, and supplied their place with
goods purchased by you since September, 1850 ?
Bankrupt—Yee those documents were to cover any debt
either then due, fr to be afterwards due. They held
4,6601. of property of the firm, and 1001. of property of third
parties.
Mr. Lawrance--By " property of the firm," you mesa
property of the house of Frank Castelli ?
Bankrupt—Precisely; of the separate trading. We took
stock every two years. The last time was at the beginning
of 1849, showing the state of affairs up to the end of 1848.
No stock account was taken prior to the dissolution in 1850.
Mr. Lawrance--You struck no balance at that time to
show what were the assets and what the debts of the firm ?
Bankrupt—lt would have been an impossibility nearly to
do it. The concern was to be liquidated.
Mr. Lawranee—Tbe first four items in your joint
balance-sheet represent the liabilities of the firm, on the 3rd
Sept., 1850, at 887,8134 Os. 4d. ?
Bankrupt—That is about the sun ; and the let four
items on the other Bide, including debts and property.

amount to 898,553!. 171. 105. Those figures ware arrived
at after the bankruptcy; an additional balance.sbest w,s
filed at the request of Mr. Groom. Of the assets, 745,2611.
were goods held by other parties, on which &leasers had
been made. Credit is taken in the liquidation balance-
sheet for a lima of 120,0001. on that pioperty ; but during
the period it had been worth about 150,0001. more. That
Pus WAS all sustained between September Ibso, and August
1851, by the fall of the market.
Mr. Laurance—When you began business on your own
account, is you say, in September, 1850, what capital had
you ?
Bankrupt—Such portion of capital as belonged to me
from the old firm.

Mr. Lawranee—That appears to have been nothing.
Bankrupt—No ; 1 differ with you. The figures do not
say so. Deducting the losses from the original capital, the
difference is the capital still in the firm. I think it would
be about 23,0001.
The Commissioner—The difference between your joint
liabilities and jour joist mem, as stated here, is between
lU,OKM. anti 11.00 W.
Bankrupt—Yea. Of this my proportion would have been
about one-half.

Mr. Lswrance—And against that is to be placed your
drawiege out of 7,3121. Was not the capital all gone but
this 10,0001., the difference between the assets and lia-
bilities ?
Bankrupt—As I understand it, there was a capital of
about 30,0001.
The Commissioner—lf there is more than 10,0001., the
898.553/. does not represent the whole of the property.
You say it was 20,0001. more, how do you make it out ?
The bankrupt referred to his accounts and pointed out
some items which raised the difference to about 15,0001.
Being further examined, he said the whole profit made
between September, 18. J, and the stoppage, was 1,7831.;
the estimated losses were 60,9051. They were stated ac-
cordiag to the market value of the property at the time of
the bankruptcy. My drawings are put down at 2,8261., but
only absut 1,5001. went in personal expenses, the remainder
wufor goods, of which the assignees had the benefit. When I
received hills of lading in respect of goods I bad ordered from
abroad, I used to pledge them, until w.thin 6 or
7 weeks of the stoppage, except at the maturity of the bills.
The debt of Mr. Lafuente, of Alexandria, of 2,6911., was
contracted shortly before the bankruptcy ; the first bill to
' him was not due till a few days after the stoppage, on the
23rd of August; the next on the 2nd of September, and the
third on the 20th of September. I received the bills of
lading for those goods on the 28th of June and 16th of
July. They were deposited with Messrs. Rucker on the
9thand 11th of August. I stopped on the 16th of August.
I only made up my mind to stop at four o'clock on the 15th.
The last advance I receive.; from Messrs. Rucker was
11,2001. on the 9th of August. I drew on them for that
amount and got the bills discounted. I deposited goons to
about that amount. On the 9.h I deposited the cargo ex
Tiber, invoiced at 1,1451., and on the llth the cargo ex
Cicely, of the same amount. I have not paid Mr. Lafuente
for any portion of those goods; the bills were net due till
after the stoppage. Messrs. Sucker, Messrs. Merry and
Son, and Messrs. Roberts, were the principal parties
pledged with in London. The drafts upon Buckets for
11,2001. were my last transaction of the kind.
By Mr. Manisty—On the dissolution in 1847 I was ap-
pointed liquidator. I bad to sell the goods that were in
hand, to collect the debts, and to pay what was to he paid
out of the assets of the firm. The firm had a capital in 1847
of 41,2771. When the arrangement was made in 1850,there
was not an immediate realisation and liquidation resolved
on as in 1847. When the liquidation was complete, my
partnen were to be paid their capital. We believed there
would be a large surplus. From the position of every arti
els we held at the time we were warranted in this expecta-
tion ; and all that took place for seven or eight months after
that date proved the correctness of that calculation. From
September, 1850, to February, 1831, the markets rose oon-
siderably ; and had our property been then realised, there
would have been asurplus of above 100,0001. beyond the capi-
tal of the house. I always gave limited orders for goods, not
only as to the amount but as to the price, so as to be under
the market value, always anticipating a probable fall. Many
orders were so limited that they were never executed. I
was frequently urged by my correspondents abroad to
extend those limits. This would be proved by the letters
of Messrs. Peter Clark and Co., of Zante, opposing creditors.
I always calculated so as to have a margin, unless some-
thing almost unparalleled had happened. In March and
April, 1851, there was a great flatness in the markets ;
sales could scarcely be made. In Maya decided fall began,
which continued till after my suspension. The fall was so
great as to create a perfect panic in the commercial world.
Such a fall as then took place, in colonial produce particu-
larly, is without parallel in my experience, or, I believe,
in that of any one else. I arranged with tke parties to
whom I consigned goods not to sell them without special
orders. Believing that things would improve, I sought to
avoid realising? and obtained an advance of 25,000/. • but
it was all sacrificed in June and July. On the 30th of
Jane there was a report, which was quite malicious at
the time, that I had suspended payment. I had 5,0001.
at my banker's that day. That report, and the continued
fall in the markets, led me to ask the advice of my friends.
They asked what would enable me to meet the demands on I
me then, and anything extraordinary which might occur
from that report. I said 25,0001. ; and it was given me with- .
out security. That was lost. I continued to receive as-
sistanee, and could have had 60,0001. on the last
day. I determined to stop, under the advice of my friends.
The markets improved considerably afterwards. Had I
held on longer, I should not have been here now • I should
have been mote than solvent ; I should have had fortune 1
for myself. Any one may convince himself of that by
looking at the stock of goods we bald, and at the current
market prices then and since. The dissolution was
not advertised, either in 1850 or in 1847. I proposed to
insert it in the gazelle, but my partners refused to sign the
document. I paid the liabilities of the old firm, in the
ordinary course of busines. The retiring partners have not
been paid a farthing, eit?,er of capital or interest. The
amount of 400,0001., for new debts incurred is in respect of
all my traasactions in that period. I never gave accept-
ances, except against geode which I had purchased. I
dealt in aers.— =dation paper. I allowed some parties to
draw - before t.h-- sent their bills of lada but
,

upon me they
that was for their accommodation, not mine. I value
for all those bills. The loss of 121,0001. on the realisation
of the property Is estimated from the prices at the time of
the bankruptcy ; that loss is entirely attributable to the fall
In the markets. The property was it* estimated at the
prices of the day, without reference to the cost. I did not
force myself on Messrs. Lafuente sr a customer ; it was the
reverse. I could have done a larger business with them.
Mr. Pasquale offered to let me draw to any amount on their
Arm, subject to my covering the bills at maturity.
By Mr. Lawrence—On the dissolution, in 1847, we wrote
to many of our correspondents announcing the dissolution,
and that the estate would be liquidated by me ' • but that
case was quite different from the dissolution of 1850. 1 have
stated in an affidavit as follows :

"That, upon the change in the beginning of 1847, there
was not any printed circular, but the change was noticed in
many letters written by the old and intended new firm.
That the letters differ a very little in words, and the follow-
ing extracts from a letter from each firm do, as this de-
ponent believes, in substance represent them all :
" ' London, 29th January, 1847.
" As our Mr. Frank Castclli tome time sines informed
your Mr. —, our house is about to enter upon liquida-
tion, and from the Ist of February it will only exist for the
settlement of commercial affairs. The new house formed
under the same firm will begin its affairs from the same
date, and for all transactions you have with it, we beg you
will&tide's' separate letters marked at the top N. B.'
" London, Bth February, 1847.
" We take the liberty to refer you to what is written to
you by Maus. Cutelli, Giutiniani, and Ce., in liquida-
tion, and we have the honour to announce to you that our
Mr. Frank Cadent, with several of those interested in the
old house for partners (co-associates), has just formed, as
well at London as at Manchester, a new establishment
under the same firm, and it is that new house which offers
you its services.'
By Mr. Manisty—l mentioned the dissolution of 1880
verbally to several persons. But there is this distinction,
in 1847 it was a liquidating affair ; in 1850 I had to take
up the operation begun by the house.
The Commissioner—By the arrangement of September,
1850, you MA all the assets, and had to pay all the liabi-
lities ?
Bankrupt—Precisely ; but there were also orders sent
out which 1 had to take upon myself.
The Commissioner—That is, you took all the assets, and
had to carry out all the engagements ?
Bankrupt—The assets and liabilities were to be carried
over to the old account; but the transactions which were I
not begun on the 3rd of September were to be ler my pri-
vate account.
The Commissioner—Did the persons with whom you
were dealing know of whom the firm consisted between
1847 and 1850?
Bankrupt—By supposition they might know it ; that
was all.
The Commissioner—There was no notification of names ?
Bankrupt—ln the letter that was issued, no names were
manliest d.
The Commissioner—ln giving notice of dissolution it
makes a difference whether the parties knew that the firm
was carried on under certain names, or whether they
merely knew it to be a new firm without knowing the
names. The ordinary coarse in constituting a new firm is
to send out circulars.
Mr. Msnisty—Certainly, with the names and signatures
very often ; but that appears not to have been the canna of
business here.
Mr. Lawrence submitted that the explanations given by
the bankrupt did not in the lean touch the broad proposi-
tion he had laid down, namely, that every debt contracted
by Mr. Cistern since September, 1850, contracted as it had
been under the semblance and colour of a firm which bad
once existed, but had ceased to exist, was a debt fraudu-
lently contracted.
Mr. Manisty said that a most sifting examination had
been made of every paper, book, and account by the as-
signees ; and the absence of opposition on their part ought
to have prevented the observation that they had not exer-
cised a wise discretion. Charges of the strongest and most
iniquitous character had been made against the bankrupt ;
but the opposing creditors could not put their fingers on a
single transaction in the course of all those years that Mr.
Castelli had been in business in which dishonesty, or want
of usiduity, or any improper conduct could be traced.
The Commissioner—With respect to the charges of fraud
in this ease, I think I may dispose of them at once, because
on that part of the case I feel no doubt. First, as to the
contraction of the debt with Mr. Latinate, of Alexandris,
I think it cannot he said that that was obtaining credit for
goods under the false colour and pretence of dealing in the
ordinary course of trade, and with intent to defraud the
creditor. It does not appear to me that the facts at all
sake out a charge of that nature. As to the other charges,
that the debts contracted since September, 1860, were

fraudulently contracted, by reason of the bankrupt I
not having given notice of the change of pert- i
nership, which was then agreed on to take
place, I think that the mere omission to give the' notice
cannot render fraudulent the debts contracted by him sub-
sequently, in carrying on the busine s under the same firm.
As WWI observed by the leerneu counsel, if nobody knew
who constituted the firm of Critelli, Giustiniani end Co.,
nobody could complain of any change in the members of
I that firm. We all know that large concerns are carried on
for years, the firms comprising at one time one set of indi-
viduals, and another time another. This is more particu-
larly the case with banking houses in this city; perhaps
scarcely one customer of the house knows who the partners
are. They who do not know who the partners are, and
who do not think it worth while to make themselver se-
qusinted with the fact, cannot complain of partners with-
drawing and its not being stated. Then again, if they do
know who constitute the hrm, they have the advantage, as
stated by the learned counsel, of being able to make the re-
tiring partners liable for debts that hare been subsequently
contracted. Therefore, unless it could be shown that this
was done by the present bankrupt with the view of
defrauding the new creditors, it cannot be said
that the new debts were contracted fraudulently ;
and for the reason I have given I think he
cannot come under such a charge. The main point in the
case, and the only one on which I shall require to take
time to consider, is—whether the bankrupt, considering the
capital be might fairly suppose he possessed, was justified in
carrying on the business subsequently to September, 1850 ;
and, if he was justified in carrying it on, whether to the
extent he did carry it on, having regard to the capital em-
harken in the concern ? Because we all know that there
ought to be a fair proportion between the amount of a
trader's capital and his credit ; with a small capital, he
would not be justified in launching out to any extent of spe-
culation; and whether a business is small or large, this pro-
lartion ought to be observed. On that point I must look a
th, more into the balance-sheets and the accounts, also
into the arrangement made for the dissolutiln of the part-
nership in September, 1850. As regards the charges of
fraud, I think I may at once say there is no ground to sup-
port them; I fully acipit the bankrupt of them ; and, as
far as I can see, he will leave the court without any stain
on his character by reason of those sharps having been
matte. It dons nut appear to me that there was anything
at all wrong with regard to the dealings of the bankrupt.
With regard to the assignees, I understand from Mr. Cot-
terill that, the matter having been taken up by the opposi-
lion creditors, the assignees thought they might be relieved
from taking upon themselves to bring before the court the
facts which have been represented by Mr. Lawrence on be-
half of other creditors.

Mr. Cotterilt—They have undertaken the inquiry in one
way ; we have examined in another.
The Commissioner—On the other hand, I think it right
to say that the assignees ought not to consider simply
whether benefit is likely to result M the estate front their
opposition, for without regard to the expenditure I think it
would be for the public bent fit, and for their own Interest
too, if they brought before the court any matters they
thought required its attention.
Mr. Cotterill—The assignees thought the matter was so
much more warmly felt by these gentlemen that they might
very properly leave it in their hands ; they would adduce
all possible objections at least.
The Commissioner—l also concur with the learned coun•
sel as to the great difforence of commencing a business
without capital, or with a small capital, and merely carry-
ing ou a large business.
Mr. Lawrence asked for the costs of the opposition, which
were allowed.

His Honour stated that he should give judgment on the
ease next week.

THE POLICE COURTS.
GUILDHALL.

Was. Henry King, Pentonville,
and Menus. IVyngt, of 83, King-street, Camden-town,
attorneys' clerks, were charged with forgery, and obtain-
ing, by means of false pretences, the sum of 701. from Mr.
Lee, a solicitor, of 4.5, Regent-square, St. Pancras.
Sir Peter Laurie said he should grant a remand in this
case, but as the most material part of the charge remained
to be proved, he would admit the prisoners to bail it. two
1001. sureties each, and their own recoguisances of 2001.
each.

Bail was tendered, but on examination was found in-
sufficient, and the prisoners were therefore locked up ou
the rising of the court, on the understanding that they were
to give 21 hours notice of bail.

COTTON.—Livairool., JAX. 20.—The sales of cotton
to-day amount to 8,000 bales, and consist of about 6,000
American (1,600 of which are on speculation), 800 Pernam
Maranham, and La Oueres, Std. to did. ; 100 Bahia, 641. ;
600 Egyptian, 6ld. to Bd. ; 400 Surat, 30. to 40. The
market closes with a hardening tendency, and compared
with Friday's rates, prices of American are ed. dearer.
Other sorts unchanged. The Atlantic's advice. received
this afternoon confirm those previously received. Estimate;
are being reduced, and prices had advanced,:althuugh the
excess in receipts are nearly 480,000 over last year.
MANCHESTER, J• c. 20.—The market opened well, and
there was a prospect of a fair business being transacted ;
but about two o'clock a pause took place, in consequence of
telegraphic announcements that the American steamer At-
, luau bad brought advice@ of higher prices in the cotton
market, and that the Bank of England had further raised
the rate of discounts by another half per cent. The two nars-
sages coming to us east and west, almost at the same time,
pretty nearly neutralised the effect of each other; but the last
had perhaps the greater weight, and had a disturbing effect on
busiae.s. Up to that moment some fair orders tar cloth
had been placed by the home trade, as well as by shippers
for Inr*.is, and prices had assumed greater firmness. The
activity of Tuesday in the yarn market had also continued
without abatement; but in the latter part of the day we
have had less activity. The American accounts bring quo-
tations of cotton I cent higher, and lower estimates of the
cotton crop ; but these changes with every packet have not
much weight here, as most of our business men have made
up their mind that there is a large crop, and one so much
in exceu of our wants, that a hundred thousand bales more
or less need
.not have any effect on the present year's
trade. The prices of cloth were fully as firm as on Tuesday,
and yarns were also steady.

CORN.-81/011NOliAlf, JAN. 20.-At Gloucester and
Worcester markets, on the 15th, the wheat trade was firm,
with the turn in favour of the seller. Barley fully as dear,
with more inquiry for all descriptions. Oats maintained
their value, and fine qualities were held for some advance.
Beans and peas unaltered. During the present week, the
transactional reported in the trade have again, been
limited at no quotable variation from previous currency.
Barley rather dearer, and grinding qualities more scarce.
Dry beans rather dearer. Oats realise quite as much
money. Peas neglected. At this day's market there was
• fair supply of wheat, which was cleared off at an advance
of 6d. to ls. per quarter. Barley sold slowly at a similar
improvement. Oats less In demand, and rather lower. Peas
unaltered. Beans, 6d. to le. per quarter higher.
BUISTOL, JAN. 20.-Our market to-day has been well
supplied, as regards quantity, with English wheat, but the
qualities have been variable, and many parcels very much
out of condition. The farmers represent the country dia-
-1 trial', especially where they lie at all low or adjacent to
rivers, as still being in a wet state, and the return yesterday
of heavy rains with much wind decreases the hope of early
improvement. The demand to-day was moderately good,
and the prices of last week's market were supported. In
foreign there was not so much business doing, but prices
were firmly supported. For flour the market was not very
brisk, and prices for both English seconds and American
were in favour of the purchaser. For malting barley there
was s good sale, and prices advanced Is. per quarter above
last week's currencies. Grinding parcels were also worth
from 6d. to le. per quarter more money. Oats are in short
supply, and there was not a great deal doing, but prices
were firm, and the same remark will apply as to beans
The following were the priees:-Engliah new wheat, 44..
to 50s. per imperial quarter ; ditto, old wheat, 525. to
60e. per ditto; foreign, white, 54e. to 58s. per 48011 e. ;
foreign, red, extra fine qualities, 50s. to 525. per ditto ;
ditto, fine qualities, 48e. to 50s. per ditto ; ditto, ordinary
qualities, 465. to 48s. per ditto; foreign, hard, 461. to
47e. 6d. per ditto. English seconds flour, 375. to 39.. per
seek; United States, &e. sweet, 28s. to 30s. per barrel.
English malting barley, ifss. to 395. per imperial quarter;
English and foreign grinding ditto, 28s. to 295. per
40011 w. Devon and Welsh feed oats, 18s. to 19s. per
imperial quarter; Irish white, ditto, 20s. 6d. to 21s. 6d.
per 3201 be.; Irish black ditto, 18e. 9d. to 19.. 3d. per im-
perial quarter. English beans, 36e. to 40e. per ditto;
foreign ditto, 33e. to 361. per 4601b5. The arrivals on
shipboard for the week have been :-Wheat, nil ; Oats,
3,861 barrels, 283 quarters ; beans, nil ; flour, N sacks.
The official return of the corn inspector dives the fol.
lowing averages :-Wheat, 451. 2d. ; oats, 19s. 4d.; barley,
33e. ld. ; beans, 395. 3d.

NIWIIVST, Jan. 20.—We have this day a mo-
derate supply of Wheat, but the condition still bad ; the
trade ruled dull without any alteration in prices. The
supply of Barley barely equal to the demand, which led to
higher prices for all descriptions. Oats, Beans, and Peas
remain without change.

UXBRIDGE, Jan. 20.—Wheat still comes to hand in bad
condition, and the sale is consequently slow; the bestquali-
ties are not lower in value; the top price for new is 565.
per qr. The best samples of Barley and Oats are ls. per
qr. dearer. Peas and Beans more offering, and unaltered
in value.

Vaiairoan, Jan. 19.—The quantity of grain arrived at
our market since Saturday hu been very limited, and
prices of all descriptions mast be noted pretty much the
I same as at the close of the week, with only a moderate
i business passing.

CHEESE.—BISHOPSTOILII. Jan. 20.—The supply was
rather over 200 tons, nearly the whole of which met a ready
male, at an advance of from 3s. to 4s. per cwt. on prices
obtained ►t the last market.

GOOD NEWS FOR ANOLERB.—Owing to the oonti•
nucd high state of the river, a greater number of salmon,
some of which are very large, have ascende it than in any
season in the remembrance of the oldest angler on its
banks. We have been informed by one who is employed
in protecting them during the spawning season, and who,
since "his arm had seven years' pith," has waged an in-
cessant warfare against the finny ,vibe, that he has seen two
larger than any lish of the salmon kind that ever came
under his observation. From the above, our brethren of
the rod may anti ipate brilliant sport in the beginning of the
season, which commences on Tumidity, the lit of February.
—Awhile Advertiser.