The Express.
London, England, 1867-08-10 00:00:00

• I:

• LAW I:

7ELLIGENCE.

(TMs DAY.)

COURT OF BANKRUPTCY.
(Before Mr. Comminioner Goalburn.)
1V Itr JAM t 111 TTON.-THE " 11NT" NEWSPAPER.

yi,,• ~.krupt in this case was the proprietor of the
p, ssp.,per, which, it will be remembered, will
S Mirch last as the organ of constitutional
and for the purpose of advocating _the views of
• ctn.!, of politicians known as Adullamites. Mr.
11•:th.n. s Ito describes himself in his petition which he
the I Ith June, as of 49, Essex-street, Strand,
! '7. l:,,hinornMerrace, Westbournelfrove, attributes
•Arnptcy to losses occasioned by the failure of the
!.• w-p.‘pe,., which he states he was unable to carry
,on of insufficiency of capital. The balance-
u bid, is in course of preparation by Messrs.
~.t• • Coolvr. %Vintle, and Evans, has not yet been
~t the debts, as shown by the preliminary state.
• t upon the proceedings, appear to amount to
• irrespective of the debts of the fol-
. noblemen, who are also inserted in the
•,‘1 Elcho, for 11,500/. ' • Earl Grosvenor
ot. ; and the Earl of Lichfield for 900/.
•
• race to their lonlships' claims the bankrupt
I received the first and second of the above-

•—neil sums as loans to furnish me with capital to
t the Doe newspaper, and such sums were advanced
the condition that if the paper was successful the
t. were to be repaid within a year, and if the news-
; r failed within a year the above amounts were to be
tr: t .14 gifts, and no claim made for the same. The third
....mentioned sum was advanced upon similar terms
.••.-i the paper had started, to assist in carrying it on."
nest sitting under the adjudication was held on the
..f June. when proofs of debt were admitted, and
?1,. %%Intl° (dohstone, Cooper, Wintle, and Evans),
w,,c appointed assignee. l'pon that occasion it was
stated that Earls Grosvenor and Lichfield and
lord Elcho had determined to satisfy in full those debts
t, II could reasonably or legally be demanded by the
ittors of the /my newspaper. Their lordships, it was
1, although entirely free from legal responsibility, felt
asset they were possibly under some moral obligation to
the credit. I's in consequence of their names having been con-
n tel with the paper, and being actuated by motives of de•
limey and honour, they bad determined to pay those
debts which could be reasonably or legally demanded, but
to the benefit of that arrangement there were two excep-
tins in cases where the creditors had, by taking legal
proceedings against their lordship', chosen their own
remedy. -The following letter, explanatoryof the position
in which their lordships stood and the course they in.
trailed to adopt in the matter and which had been written
to the bmikrupt on their behalf by their solicitor, was also
read . _ _

_, Great Marlborough-street, W., June 25.
Dear sir,—l am instructed by Loris Grosvenor, Lich-
field, and Elebo to state that, subject to the following
conditions, they are prepared to pay such of the debts
mentioned in your schedule, amounting to 2,656/. 2s. Sd.,
at shall on investigation by them appear to have been
bona fide contracted by you in connexion with the print-
ing and publication of the Day newspaper (such creditors
not having been in any way connected with the specula-
tion). except those stated to be due to Mr. James Baillie
render and Mr. Join O'Brien Saunders, who have through
their solicitor threatened to commence legal proceedings
r.sinst their lordships, and must, of course, be left to
their legal remedy. These conditions are—

••1. That you give up all right of property in the Day
newspaper for the benefit of your creditors.
•• 2. That this letter be publicly read at the first meet-
it.- of the creditors. . .

74 This I..st condition they are obliged to require in yin •
diestion of their own character, and in order that the
public may understand what their connexion with the
Day newspaper has really been. Upon this point they
fear considerable misapprehension prevails. You know
and admit, and indeed there can be no possible doubt on
tic subject, that they have incurred no legal responsi-
bilities whatsoever.

" was advanced you on loan by Lords Grosvenor
and Echo to enable you to start a penny daily paper to
advocate constitutional liberalism ; a sum of 4001. and a
forgoer sum of rent, were subsequently lent to you by
Lord Lichfield to help you to carry on the paper for ashort
time. whilst you were endeavouring to induce some capi-
talist to embark in the concern. They had no property
whatever in the paper. They had nothing to do with the
riatiagement. The original undertaking was that you,
your relations and friends, should, on an advance of
::.1011/, being made to you, find 17,000/. to enable the paper
to be carried on for at least one year. You were, it is
true, unable to give any written security for itr
undertaking, but the 3.0001. was, nevertheless, as you ell
knew at the time, lent in the full faith of its fulfilment.
It was first understood that the printer and others con-
cocted with the Day were to be told that it was to you
personally, and to you only, that they were to look for pay-
ment. !soother name or names were to appear in the back
ground as security for any payment of debts incurred by
you. There is, however, reason to fear that as you have,
after the expenditure of the 3,000/. advanmd by Lord
Grosvenor and Lord Fiches, and the 900/. advanced
by Lord Lichfield failed to fulfil your undertaking,
to carry on the paper, so from some cause or other the
latter part of the undertaking has not been fulfilled.
Although, therefore, ',onto Grosvenor, Lichfield, and
Elam are in no way legally liable for the debts which you
may have incurred in conducting the Day newspaper, of
which you were the proprietor, still they feel that a cer-
tainprietor, degree of moral responsibility may by possibility
attach to them on account of their supposed
connexion with it. Jealous of their good name,
they do not wish that anyone should suffer
through a possible misunderstanding or misrepresentation
of the facts of the case. They are, therefore, as I have
already stated, prepared to make themselves responsible
for the payment of the debts as per schedule (vented by
your oath), with the exceptions and on the understanding
above mentioned ; but at the same time they think it
necessary, in justice to themselves, to require as a condi-
tion of payment that full publicity should be given in the
Court of Bankruptcy of their share in these transactions.
--1 RIM, dear sir, faithfully yours, " B. BROUGHTON.
" James Hutton."
A sitting for last examination and discharge was now
held.

Mr. E. Reed appeared for creditors, and said that • great
number of contested proofs had been presented which
would require investigation. It was right to state that
Earle Grosvenor and Lichfield and Lord Moho had oome
formsrl in a very handsome manner. and agreed to pay the
debts which had been incurred upon she reliance of their
connection, or supposed connection, with the Day news-
paper. At present the bankrupt had not been able to
Ale his accounts, as it would be first necessary to
determine for what amounts the claims should be respec-
lively admitted as proofs, and he was not therefore to
blame for the delay. It was proposed to call a meeting
for discussion of the proofs before Mr. Commissioner Win-
slow, to whose court the case belonged, upon his return
from his vacation, and Messrs. Johnstone and Co., the
somuntants, would then be in a position to file the ac-
counts. He was therefore instructed to ask for an ad-
journment of the present sitting.
Mr. Bagley (instructed by Mears. W. and H. P. Sharp)
Laid that as representing the assignees he entirely con-
curred in the application for an adjournment of the sitting,
in order that the case might be beard before Mr. Com-
Missioner Winslow, and the proof investigated.
Adjourned according to the 12th of November at 1.