The Express.
London, England, 1848-05-02 00:00:00

sidle; ank VpiioTrie a feint tioltor for any number of
them, be would entertain any application that it might be !
thought proper to make. The parties then withdrew. No
proofs were taken. Ws understand that the amount of
debts and liabilities -wine Julllen le about /0,000.
end about 3,0000 spin* dish joint lifitato. The orectlteri
eubmiqnsatly he ti' *-meeting, at which Kr. Cole was re-
quested to act for the body, and take such steps as might be
necessary for securing an cquitable distribution of the pro-

petty.
LACICERSITISN AND CRAZE'S BASTAttl'InCY.—The meet-
ing fur the proof of debts and choice of assignees, in the case
of Lackersteen and Crate, merchants, of fdoorgate.ntrect,
took place yesterday. The proofs of debts occupied nearly
two hours. The proofs put upon the file amounted to
90,0001, chiefly in sums of from 1,0001. to 6,0001. The
largest creditor is the Bank of England, who have Droved for
13 0001., on bills. The trade &soignee* appointed were Mr.
Brennan, merchant, of Barge-yard, Bucklersbury, and Mr.
Haddon, merchant, of Broad-street-buildings. The official
assignee is Mr. Cannon. M . Dickson and Overhury arc
the solicitors under the flat. It is supposed that the assets
will realise between 40,0001. and 60,0001. The next meeting
tidies place on the let of June.
Bef,re Mr. Commissioner Shepherd.
EXTBSeitts BILL Titerstiecrtoae.—Thornas Lyon and
Edward Lyon, stock and bill brokers, of Birchin-lane,
applied for their certificates. Mr. Lawrence 'supported the
application, which was opposed by Mr. Hillary, for the
assignees. The balance-sheet, extending from Jan. 1, 1816,
to Oct. 7, 1847, had the following items:-I'o creditors,
2,1711.; liabilities on bills discounted, 41,3831.• capital,
6,8011.; profits, 6,4731 By good and doubtful debts,
2,7911.; liabilities (per contra), 41,3831.; property, 1,3841. ;
lows, 6.2921 ; enunting-house expense., 9861.; cash drawn
out by T. Lyon, 1,7014. ;by E. Lyon, 2,2721. The principal
grounds of opposition were reckless trading, time bargains
in Consols and other securities, and the assignment of a
policy of life insurance for 2,oool.—The bankrupt T. Lynn
in examination stated that the capital of 6,8011., with which
they commenced business, was largely composed of bills,
many of which turned out bad. At their stoppage, on the
21st of September, they had a balance of 1,0004 at their
banker'e, and he drew out 6001. that day ; it was trust money,
end he thought he had • right to do so; but on being
informed by his solicitor that he had not, he paid it hark.
It had been invested in Consuls for his wife'. benefit, so
whom it was due under a policy of insures:co for 2,0001
assigned to her In 1837. The money was afterwards re-
transferred, under the advice of Mr. Lawrence. The re-
maindt r of the balance in the bank was nrplied to his neces-
sary expenses. lie had conducted the bid business, which
coneisted of discounting and re-discounting, on which they
had • brokerage of 10s. per cent. Had never applied any of
Mr. Somers's money, or that of oilier err ditors, en discliarg
ing old debts. The bills he dealt in had been regularly paid
fee 20 years; attributed their failure entirely to the "crash"
of last year. Had pursued predsely the same course of
business as Ove rend, Gurney, and *Co., Sandersons, and
other large houses; it was the general practice of bill-brokers
to guarantee bilk Of the 41,000/. of liabilities at the time
ot their 'stoppage, about 16,0001. bail siaco been p aid
by the partite en whom the bills wire drawn.
The remaining 25,0001. was chi• fly composed of the
bills of Goody, (a who'. sale 'traw-plait dealer), Ilelditch,
and others; independently of which the private debts were
oily 2.1701 —Mr. Grahem, the official assignee, said that
above 2,0)01. of assets had been realised.—Mr. Hillary ad-
mitted that about 2,5001. altogether might be realised.—
Being huller examined, the b nkrupt said that at the time
of the stoppage they were nA threatened with ett.y Ic;711 pro-
ceedines, nor pressed fur money, nor were any of their Bide
due. They-stopped on account of the difficult state of the
money market 1 he assumed that many of their bills wnull
not be met, inciuding Goodyer's. They were in the habit
of receiving supplies of money from two or three country
hanks; these supplies were much diminished, the pressine
was so tremendous.—Edward Lyra), the other bankrupt,
stated that his department of the business was the stock
exchange. A hill of Smith's for 7001., which fell on the
state, was for differences, seising out otime bargains. On
some other transactions of the same kind there was a
less of 1701. These were all in 1816. The par-
ties had refused payment on account of these being
time-bargains. Had drawn 1001. out of the bank
just before the stoppage, and paid 301. of it to • cre-
ditor. Had always acted as broker, never as principal, in
these time-bargains, the commisaion for which had bene-
fited the estate.—Mr. Somers dt posed that be had deposited
his spare cash with the bankrupts; he deposited 11,0001. or
11,0001. shortly be the stoppage. At that me, one of
the bankrupts taut him that Ouadyer's paper was worse in
1833 than at that time. Iled done business with the bank-
rupts six or 'oven years, and had al mita a taken 600 dyer's
paper; the bills were always paid when due, as fur as he
knew; he generally took them back to Messrs. Lyon a day
or two before they were due.
Mr. Hillary said he should refrain from calling Goodyer if
Mr. Lawrence would admit that tho bankrupts had for years
been knowingly dealing in worthless paper.—Mr. Lawrence
s tat the fact could not hr denied, as it had turned out.—
The Corumissiener said that wall in evidence on the pro-
ceedings.
Mr. Ilillary then submitted that the bankrupts having
dealt far years in • class of rotten paper had been guilty of a
grows fraud on the public and their creditors. The suspi-
cious nature of the bills was evident from one circumstance
alone—that a great number of them were (or the precise
sum of 2001. The benkruots bad evidently horn purruing
liar Infamous system for years, and now sought to justify
their conduct by representing the unbounded confidence
which they had placed in the Messrs. f ioodyer. Their whole
conduct tad been most reckless. They had sueeeeied in
propping themselves up for yeses by this artificial system.
Their et rtiticatie ought to be suspeuded for the longest pe-
riod, it not withheld altogether; for this was evidently a
conspiracy amongst worthless parties to defraud those who
might trust them of their money.
Mr. Lawrence contended that Mr. Somers, the principal
creditor, had been all along acquainted with the nature
of the bankrupts' dealings. After allowing Gotelycr
to enter into a comp.:salon, it was extremely harsh
to pursue this hostile course to these who had
been innocent instruments in the transactions. He de-
nied that the bankrupts had been living on the public fur
leers: they began with a capital of 6,0001. or 7,0001.; and
now, but for the bills of Goodyer and others, would pay 20a.
in the pound. It was not the preetice of bill brokers to in-
quire into the character of the paper they discounted. The
thing was impossible in practice. All they could do was to
look at the names of the acceptors ; and as Goodyer's bills
ha I always been paid, the discounts were continued. The
course pursued by the Bank last autumn, of charging eight
per cent. for discounts, had the effect of taking away from
the bill brokers their former supplies of money; this had
li been felt by the bankrupts, and hence their stoppage. The
charge agatnet Edward Lyon, of dealing in time-bargains,
could not be urged spinet his certificate, as it was clear he
had only dealt as a broker, and not as a principal. No other
charge had been brought against either of the bankrupts,
except that of dealing knowingly in worthless paper, and
title charge was, wholly unsustained. Their expenses had
been much below their profits, and their booke had been
most regularly kept.
The Commissioner said he must come to the conclusion
that there had been reckless trading. The bankrupts had
for several years been discountiug bills drawn and accepted
by the same parties; and they must have known who and
what these parties were. He knew it was the practice in
London for parties to drug on ter a long time onuie verge oh
ruin, until some pressure came and finished them. This
applied to Thos. Lyon, whose certificate runic be suspended
for twelve months trum the passing of the last exeminatiou
(protection granted). The other bankrupt, who had taken
no part in the bill tiansactions, would have his certificate
forthwith.