The Express.
London, England, 1862-08-29 00:00:00

LaW inttllignict.
COURT OF BANKRUPTCY.—Auousr 27.

(Before Mr. Commissioner Face.)
IN II HAIM* AND COLLINOWOOD.

The bankrupts were malt and hop factors, of Mark-lane.
They failed in December last, having liabilities of up-
wards of 20,0001. ; there were no assets beyond the pro-
perty held by secured creditors, valued at 7,964/. Col-
lingwood has obtained his order of discharge ; that of
Hamper had been adjourned from time to time until
this day.
Mr. Lawrence opposed for the assignees, and Mr. Mur-
rough for creditors ; Mr. Poole supported.
Mr. Lawrence said that at the last sitting be had asked
the court for an order to prosecute under the new act, and
his Honour had taken time to look through the evidence.
His Honour said he should not direct a prosecution at the
public expense.
Mr. Lawrence then asked that the order of discharge
should be wholly refused, and that the bankrupt should be
sentenced to twelve months' imprisonment, under the 159th
section. The court could only do this where the bankruptdiad
been guilty of the specific offences defined by that section ;
and iu this case the bankrupt had been guilty of four of
those offences. He bad traded with fictitious capital, having
resorted extensively to accommodation bills ; he had con-
tracted debts without probable means of paying them,
omitting to keep proper books of account, and indulging
in extravagant expenditure. Two years ago the bankrupt
had joined Collingwood, who brought in 2,7001., the whole
of which be had lest. Hamper was at that time insolvent
to the extent of 3,9191., and Collingwood's capital was ap-
plied in discharge of his old debts. The trading in fifteen
months had yielded a gross profit of 1,456/., but the
trade expenses were upwards of 3,6001., or more than
double the profits, and there were brides bad debts of
9601. During the whole period of the trading, Hamper had
systematically pawned goods with Mr. Attenborough and
Mr. Berridge, and had so kept himself afloat. As goods were
bought, advances were obtained upon them ; and the result ,
was that the bankrupt owed 16,000/., irrespective of the '
amounts received on the goods, and there were no joint
assets whatever. The bankrupt had drawn out of the I
firm 4,7271.; though asingle man, his personal expenditure
bad been 1,800/. a year, and he had applied 2.4091. in pay-
ment
of old debts. His purchases had been to the extent
of 41,2501.; on malt bought at 68s. to 72a. he bad obtained
an average advance of 455. per quarter; and at the time of
the bankruptcy there were goods in pledge to the amount
of 7,954/. None of those pledging' had been entered in his
books, add they bad continued up to within a week or two
of the bankruptcy. He had contracted a debt of 4,0001.
with Mr. Dunnell within two months of the bankruptcy,
being the first transaction with him, and the whole of this
was unpsid.
Mr. Pock —He does not oppose.
Mr. Lawrence—But I oppose for the assignees, and haves
right to call the attention of the court to all the facts in the
cam. Great part of Mr. Dunmire malt had been pawned
with Mr. Attenborough immediately on its being delivered.
With Mr. Charlwood, another creditor, he had had a first
transaction a few weeks before the bankruptcy, and had paid
nothing on account. Most of the malt that was pledged
went direct from the railway station where it was delivered
to the pawnbrokers. It was impassible to avoid the conch:-
Mon that the facilities held out by Mr. Attenborough and
others to struggling tradesmen were extremely mischievous ;
but, however, the pawnbrokers were not before the court
for punishment.
The Commissioner—No; but one would not be very
sorry if they should be punished indirectly. (A laugh.)
Mr. Lawrance—ln Mr. Attenborough's examination he
atsted that he was in the habit of advancing money on
tradennen's goods, charging 5 per cent. more than to the
general public, or 20 per cent. This was neither
more nor less than enabling traders to rob their
creditors. Mr. Christie, a former clerk of the bankrupt,
stated that no entries of the pawning' were made in
the books, and that the bankrupt had forbidden such entries
to be made, with a view to keep the fact from his partner ;
but this was denied by the bankrupt. Five months before
the failure their accouot was in such a state at the London
Joint Stock Bank that the bank had closed it ; not-
withstanding this, the bankrupt had gone on contracting
debts to the amount of several thousands. The bankrupt
alleged that his partner had agreed to bring in 10,000!., but
had only brought in 3,0001. The pledging', he urged, had
been resorted to to meet a temporary pressure, and to avoid
sales when the market was falling.
Mr. Murrough, for Mr. Elliott, a creditor, dwelt on the
imperfect book-keeping of the bankrupt.
Mr. Fook denied that any of the offences specified in the
penal section of the act had beau proved against the bank-
rupt. The offences alleged had been committed before the
new act came into operation ; and the fact of pledging for
a temporary purpose was not an offence within the provi-
sions of the old act. The bankrupt had had great ex-
perience in the malt trade; he knew that the markets were
falling ; and he bad considered it the leaner evil of the
two to pledge at a loss of ttil. per quarter per month, instead
of selling at a lass of re. or 6s. per quarter. He had been
driven to do this by the default of bin partner in not bring-
ing in the 10,0001., which he had undertaken
to bring in; and this partner, who was the cause
of all the mischief, had received an immediate
order of discharge. The bankrupt had not kept his own
books ; his atteution bad been lately given to travelling, and
buying and selling. The charge of contracting debts with-
out probable means of paying them, was disproved by the
fact that the bankrupt was expecting his partner to bring
in 10,000/. As the liberty of the bankrupt was in question
here, the court would require strict proof of the offenoes
charged. The books might have been imperfectly kept,
but tide had not been done with intent to coneal the true
state of his affairs.
His Honour reserved his judgment.