The Express.
London, England, 1858-05-08 00:00:00

IN AZ TUN LONDON AND LITWIN BANKING COk?O-

RATION.

The put-heard applicahon in this matter, dismaing an
adjudication of bankruptcy spinet toe above bank, made by
Mr. Commissioner Bram MI the 28th of het month, wee
this morning restuned. It appeared that an order
was made by the court on the 26th af November, 1867,
ander the Wmdinrup hot dissolving the tiompany, and on
the 2lat of Deenniber official manager* were ap-
pointed. Oa the 13th of January, 1868, a writ was limed
:Matthe comma, by creditor, and judgment afterwards
ed, which was ands the foundation for the proceedings
in bankruptcy. The cammitsioner could not sea any distinct-
Eton between this and the owe of the British Bank, notwith-
standing that the action on which the petitioning creditor's
debt wee banded in the Math Bank awe was bras& be-
fore the bank we. dissolved, whereas In the pretest cam the
action wee commenced subsequent to the &embalms of the
company and the appointment of the official manager.
Mr. Rolt, Mr. Hetherington, and Mr. Roxburgh have
been Maid in support of the application. Mr. Amphlett,
r. Begley, and Mr. M.Nangbiet, append for the petition-
creditor; Mr. Daniel and Mr. Birdwell were for the
creditor'. representative.

At the °Zebedee of the miumente,
The Lord Chancellor aidd that it would be nexastary, be-
fore deriding the caw, to lout very carefully into She various
sate of parliament relating to the subject, acme of the clauses
d which were hard to reconcile, and he should therefore re-
serve his judgment,

COURT OF BANKRUPTCT.—MAY 7.
Mew* Mr. Ccemehriceir Fish.)
_IN In lIIINXITT.--DUTT OF £llllOllllllB.

Hie Honour rid Act imy mat csesUelitely been
brought before the Court of Chancery, in which a gentlemen
asdag as creditors' assigess fa this court has had his ocadoet
WWI in igoestioa, and has sustained heavy premien lose in
the way of costa, la conesquenos of his engaging in • trans-
ited= which chancery law Invariably Condemn when it is
▪ the subject of judicial investigation. I advert to this
able publiab,, because I have received • communication from
thejudigas el die Court of Appeal in Chancery, calling my
or inks to the ear se evidencing malpractice. in this court.
The oar is ana, however, to which the attention of persona
connected with thews courts ought to be drawn very
pdatedly. The mere dB is " Poole, v. Quitter and ottani."
It was duet Weed before one of the vier chentellon, aid
then on spiral beim the Lords hunter, The ease was
this —Poor, was • creditor of • bankrupt railway
contractor and lied peeved a debt of about 23,0001. Whir
and two other preens WIN chosen assignee.. Boon after
the bankrupts, • country solicitor, who had been solicitor to
the bankrupt while Millen, negotiated with Pooley about
haying his gempective dividend up to Bs. in the pound upon
the debt proved. Bators concluding the bargain the country
*elicitor communicated with Quitter, and asked him to go'
shares in it, dividing profit or lose. Quitter agreed, and after
some further negotiation the bargain was made by the
washy solicitor for both. It turned out beneficial to the
=Pooley found that it woe so end tiled his bill in
to est it aside, on the ground that, whatever might
have been its validity, had the country solicitor, who owed
so duty to Pixley, been alone in the trammed= his oon-
make in It with Quitter, the assignee, who ss assignee was
a hears for Pooley, rendered the bargain null sad void, on
the ground that • trustee, which Quilts, wear tripes, Is
disabled by his trusteeship from buying of any n
ire whom he is trustee. When Poultry the
transaction Quitter was at once advised that he could not
maintain the bargain for himself ; but, strange to lay, he
was oleo advised that though the bargain was bad as hawses '
himself and Pooley, he could maintain it as against Noisy,
as • bargain made by him se one of the assignees in trust (or
all the creditors ; and in consequence of this advice he, in-
stead of at once acknowledging hie errant, and adding with
Pocky, contested the matter. lJnfortunately for him, the
Chancery juige heron whom the case Bret oars adopted his
view, the consequence of which was an appeal to the Lords
Justices; and on the appeal Quitter and the orinatry solicitor
were ordered to reinstate Poole/ in his rights, and of mares
they had to
anypa heavy costs. I now advert to this ems, not
y
because it is part of my duty publicly to lectors assig-
ner as to matters which an not regularly brought ender my
notice in the affinity parkeresate of my duty, hut because
I have received the intimation from the Court of Appeal In
Chancery, to which I have above adverted. lam always ani-
ons to eerry out the view, of the superior judges; and in
this came I have not the lead difficulty in doing so, because I
entirely concur In every principle expressed in the judgment
of the Court of Awed. Neither • creditor's assign, nor
the solicitor to the assignees, nor any person who is in any
way actin se guardian of the rights of creditor*, can pur-
chase of any of those creditors any interest in the estate. To
do so is a violation of duty and illegal, and of course • most
hazardous trazwaction. I have heard that such things are
. of frequent occurrence in arrangements out of court , and I
' for that Mr. Quitter, who is • very skilful sad highly re-
spooled accountant and man of business, constantly employed
in private arrangements, may, in connexion with private
arrangements., have become ao familiar with such transact.
tions, rarely if ever challenged under private arrangements,
that he may have thought that neither law nor equity for-
bade them. This, however is a great miekk• ; and
I feel obliged to the judges of the Court of
Appeal for giving me this opportunity of publicly
announcing to all whom it may concern that such
' oontrans between a trustee and those for whom he is • trea-
ts. are not only violations of propriety, but are trenseelkes
which, If challenged, will infallibly be est aside in
with heavy loss to the trustee so acting. That aria public
warning will operate to prevent such graceless ia private
arrangements I have little hope; for private arrangement Is
but another word for " secrecy ;" but I trust that it will
operate favourably in all oases which come into this court,
whossunbounded powers of inquh7 moat any momentand at
Utz/. expense throw • flood of light upon the darkest trainee-
does. I think it due to Mr. ,Quitter to fey that I behave
then never awn into this court • large eases whin the
creditors ware so sip-eably disappointed as in the cams now
under discuadon. The nests, owing to the admirable
nisnagesecnt of the creditors' mignon ineindieg Mr.
Quitter, aided by the actin assistance of the bankrupt, a z
retractable though unencoesehd ran, and by the tinning
genes sad judicious ranageosast of my most excelling official
arignes, Mr. Cum. produced many thousands of
pounds more than the creditors had ventured to hope for;
and the assignees were so phased with the truh, that they
treated the bankrupt, to whom I had the perms of
giving a first clam corlifiesty with no moot oxerideno•
liberality. Observations wee also mho k the court alien
ea the remuneration allowed to the accountant to the estate,
which I end was 9331 Tide eters a large sum, but on re-
viewing the case It der not appear to ma out of
.prvordes
to the magnitude of it. The bankrupt was a railway ecee-
tractor, and had three great establishments st and near
B the fourth at Bridgewater, and others at Plymouth
and Te math, wi th • very valuable plantat three plaoes. He
bed nu pined contracts with twelve railway ceepaaies, sad
also • contract in COMMOMOn with • Fromh y. Be
bed twelve ships, one In Australia. The ktkliaar was
aseried on by the assignees kr Mess secathe, is Which time
completed the costrare, soil the atm gad settled
ed received the freights. Baelatigavied- .llnt in
riespleting the confrere, they of it
anneageoarly. By torstistbe the they
waked up the erok fa hind also to severlege. Thin
won 110 rediters, trey wine claims *hit nguilied
=l.The seensed arehters r=ormled to SOAK The
.were assihed,rd Isis a surplus of sheet 7.01101. be
the panel reillems. The sellinary debts and Wallies ea
ellerd areentel to 3111,01101._ but the proofs were waned
by esnfiel inneelseiles le wpm Tbree dividends love
boos mods--ese et belf-avresos, cos of le., aed no of
la. Pd. in the pseud t• sod seethes will dos* be sole—
=ly in a mak The boakespes, opie Inbred in
, 1863. The dividnd was aide is November,
1853 ; the sewed is April, 1814 ; the third in July, 1866;
and the final dividend will soon be made. Having regard to
all these circumstances, I newt think the remuneration
allowed to the accountant nared by the assignees enemies.
Lamenting Mr. chanter's error, I must still do hits the juste
to say, that with ose exception, he has deserved well of the
meditate.
Mr. Staining appeared for the assignees' Mr. Maynard
for Mr. Quitter; and Mr. Taylor for Mr. Pooley.

IN i 1 NARROW AND RAYMOND.

A petition fur adja-iliCat—ioi li;.itaskeegiOiwirne• peemied
spied George Barrow and George illeasseil, vrielsolip
mikes', of &Anglian wtrest, who (Weir lig Amp Si-
ssified is yesierday's Erprees in our report of shegrikweriert)
Iwo beat e=mitted for trial for forgery. Kern. Toted-
*der, Hunt, and Co., of Sherbonse fin., ere the petitioning
erteMbirs. The pention WAS Fixated by Mr. Spysr.
The adjudication is expected to be wade this day.