The Express.
London, England, 1862-08-21 00:00:00

ta) iiiterilltrentr.
COURT bit 13ANIERUPT0Y.—Auoun 20.
aware Ootomiasionor Holittyd.)

it STIFF.

Theseus 'Whig for the adjourned examination of Mr.
(Merge Stiff, the newspaper proprietor, of the Strand and
Norwood. On the 24th of July en adjournment was
eiders& N coseequence of the amounts not having been
filial ha time. Mr. Stiff, it may be remembered, became the
purchaser of the Moreno) C7iniside, and reduced the price
of the paper from four pence to one penny, and to this un-
fortun.ite speculation his appearance before the court is
principally attributed.
The account., prepared by Hart and Co., have already ap-
peered lu detail in this jouraeL
The following report was made by Mr. Joseph Hart, who
was employed as the accountant by the assignees
In the matter of George Stiff, a bankrupt.—ln this
ease the bankrupt is described as a newspaper poprietor,
et 2.14. Strand, iu the county of Middlesex, and Beulah-
spa-villas, Norwood, in the county of Surrey ; he was ad-
judicated bankrupt upon his own petition on the 20th day
of March, 1862, and upon the 15th of April following it
was ordered by the court that, in addition to his "state-
meat of accounts," the bankrupt should furnish a Wanes-
sheet or deticieocy account, commencing in July 1859 ; a
profit and lose account, showing the profit or loss arising
from the several journals called the London Journal, the
Weelly Times, the Guide, and the No; luny Chronicle re- I
apectively ; and also a cash account for six months imme-
diately preceding his bankruptcy, and it was further ordered
I (Me accountant) should be nominated to sestet the bank-
rupt in the preparation of such account", and in pursuance
et such nomination, and having prepared the accounts, I
beg to submit the following as my report :—" At the
commencement of these accounts in April last I bad
great difficulty in obtaining the assistance of
the bankrupt to elucidate or explain his books,
and in consequence I was compelled to apply to the paper
factors and creditors generally for statements of their ac-
counts, which enabled in. with the assistance of the book-
rapt's books to prepare the accounts required. The State-
ment of Accounts—This account contains simply' the de-
tailed statement of the bankrupt's debt; liabilities, and
assets; it has been compiled from the books and invoices,
and dimities a deficiwicy of 14,5601. 10e. Id. Deficiency
Account—Tbia account commences in July, 1859, being the
date at which Mr. Stiff purchased the London Journal and
Guide from the late Mr. Ingram, proprietor of the Mos-
/nerd London News. 23.0001. of the purchase money was
accepted for by Mr. Stiff, payable at certain dates then
agreed upon, and as security for the due payment of this
account a mortgage was given over of the copyright of the
London Journal, Guide, and Weekly Tina, with the usual
power of sale in case of default. Thin power of sale
was exercised and the copyright sold before Mr.
Stirs bankruptcy. The account contains the ba-
lance-sheet, the profit and does account of the London
Journal, the Weekly Timm, the Guide, and the Morning
Chronicle, sod has been prepared from the books, papers,
and documents in existence, and, "object to the following
remarks, I have to express my approval thereof. Item
No. 2,—Profit being estimated, improved value of London
.10111119 i from reduction of paper-duty 21,0001. The bank-
rupt alleges that the extra profit on this paper, coosequent
upon the reduction of the paper duty, would be about
7,0001. per annum., which at three years' purchase (the ordi-
nary mode of valuing newspapers) would amount to 21,0001.
This estimate is entirely conjectural on the part of the
bankrupt, and tom mind is not borne out. It is written
off as an estimated loss on the other side of the deficiency
mount. Item No. 3.—Estimated value of the Guide.
This item is also entirely conjectural, unsupported by evi-
dence, and is treated the same as item No. 2. Item No. 4.
—Prat on tradieg Weekly Times, 6,444/. 19".8d. In
arriving at this profit, the weekly statement of ineomesed
expenditure furnished to the bankrupt by Mr. Hutton, one
of the proprietors, has formed the basis. From this amount
must be deducted various expenses not included therein ;
the bankrupt's proportion, four-fifths, as detailed in folio 1,
being 1.5441. 175.. 4d. ; thereby reducing the actual profits
of the Weekly Times from 18th July, 1859, to 20th March,
1862, to 4,9001. N. Id. A serious loss has arisen apes, this
publication office September, 1861, is oonsepteooe of the
reduction of price from twopence to one pees,. Item No.
s—Profit on trading, London Journal and Guide, 19,2641.
4a. :1/41. This amount is reduced by sundry payments and
expenses, as detailed at folios 1 and 2, not included in the
general trade% sonnet, amounting 607,0591. se. 10d., thereby
reducing the net profit from 16th July, 1859, to 20th March,
1862, 12.204/. 18e. 11d. Items 6 and 7do not require any
special remarks. Item No. B—Surplus 16th July, 1859,
22,6641. 18a. 10d. In this amount the following items are
included, and are the bankrupt's estimated value—viz :
Value of the four-fifths d copyright of Weekly Times,
16,0004 ; value of lease of premiere at Brixton, 6,0001.
It may be remarked in refaresoe to the value the bankrupt
puts upon the Weekly Tina in July, 1259, that the result
of the profit and Mes woman from the let of Jaly, 1859, to
the 20th of March, 1862, shows a net profit of 4,9001.2.. led.,
being at the rate of about 1,8001. a year. If this paper be
valued upon the " principar thebankrupt baa adopted in vain-
Mg the estimated extra profit on the London Journal, viz.,
three years' purchase 5,4001. would be the amount of such
value, instead of 16,0001. The bankrupt puts the present
inane of the Weekly Times at 7,1001. ; but looking at the
fact that lime September, 1861, it has been carried on at a
loss of 1,8001., it is difficult to understand bow the copyright
could be of any value. The value of 6,0001. placed upon the
lease at Brixton in July, 1859, is excessive ; the valuer of
the aseimmes stating the value as not more than 2,500/.
The Hominy Chronicle. It will be men from the summary
statement at page 144 of these accounts, that the publica-
tion of this paper has been attended with very heavy lose.
The returns have been 18,2001. 17s. 4d. for twelve mouths,
and show upon the making up of the account a loss of
11,1191. 9s. 5d.. which, in consequence of a portion being
borne by Mr. Stiff 's partner in the paper, is reduced to
9,6821. 18e. 2d. I also feel compelled to specially draw
the attention of the court to the item of personal expendi-
ture, the amount for two years and eight months being
9.4571. 10s. 10d., in addition to which there is a sum of
792/. 6e. 9d. carried to " suspense" account, the appropria-
tion of which Ido not trace to my own satisfaction. The
books of the bankrupt are in a very confused state. Ido
not find any general ash-book, having had to raise a cash-
book for the whole period of two years and eight months, in
consequence of which in compiling these amounts my labours
tare been considerably augmented. In concluding toy
report, I am hound to observe that in the late period of my
work, the bankrupt Las rendered all the assistance required
of him."

Mr. Linklater appeared for the assignees; Mr. C. E.
Lewis supported the bankrupt.
Mr. Link h. ter applied for an adjournment. The accounts
were of a complicit, ed nature ; and desirous as the assignees
were that the bankrupt should have pained to-day, be was
afraid be must ask for an sdjourument There were some
serious questions involved, one being that the London
Juurmal was sold just before the bankruptcy for 18,000 f.,
and one or two creditors considered it was an improper sale.
By the reduction of the paper duty it was said the property
had increased in value 5.0001. or 6,0004 a year, and bank-
rupt stated three years' purchase was the usual rule ob-
served in the newspaper trade. There were also further
details required of 11,200 f., which the bankrupt alleged hrd
been expended on the Morning CAronide in two years and
a half.
Bankrupt—Twelve months.
. . _

Mr. Lieklater—Well, twelve months. TIM bankrupt
during that time appeared to have been living at the
rate of 4,000/. a year. The 9,0004 of
expenditure, together with the 11,0001., made personalo,,,
~
which they required a more particular account. The
system pursued appeared to be this. Aa to " cheque
A," Mr. Stitt said, put that dowu to my account; "cheque
it," oh, that goes to the Morning Chronicle; " cheque
0," put that down to some other account, and so on.
Mr. C. E. heels drew attention to the fact that Mr.
Linklater bad not referred to the report of the accountant
io the case, Mr. Hart, an accountant, and a relative of Mr.
Edward Hart, one of the amalgams.
Mr. Linklater briefly examined the bankrupt, after which
an adjournment was ordered to the 4th of November next.