The Express.
London, England, 1868-08-18 00:00:00

ALLEGED FRAUD-13 HT A aiTiON

Two other actione, brought by Messrs. Skatrockg and
Others., creditors' assignees s.if Mr. Minns Coavelas, a bank-
rupt, lately in business' in Manchester as a cotton mer-
chant, were heard to-day. The first was brought to
recover the value of thirty bales of cotton (8321. 14..)
consigned by the bankrupt to the defendant, a short time
before the bankruptcy, the bills of lading and documents
for which bankrupt gave to defendant on May 19th last.
The allegation was that the bankrupt had shown a fraudu-
lent preference.
Mr. Manisty, Q.C., and Mr. R. G. Williams for the
plaintiffs; Mr. Quoin, Q.C., and Mr. Lereeche for the de-
fendant, Mr. Paul 7.01aa, a cotton merchant of Manchester
and Calcutta.

The accusation was brought upon the ground that on
the 19th May Mr. Couvelas, the bankrupt, had stopped
payment, that he was hopelessly insolvent, and that he
knew that bankruptcy was imminent. It was contended
that he made over the cotton under very peculiar circum-
stances. The bankrupt's affairs had been getting worse
and worse for a considerable time previously ; was
pressed for money in April, and on the lst May applied
to defendant for accommodation. Defendant let him have
2001. in cash, and gave him his acceptance for 3001. at four
months, in exchange for. which the bankrupt gave his ac-
ceptance at 3001., payable at six months. Matters went
on for a abort time. Mr. Couvelas had a good deal of
cotton in the hands of Messrs.. Papayanni Brothers, of
Liverpool and Constanhnople' and in the latter placea fair was held, to which the bankrupt sent some
goods in the hope that he might get remittances, which
would tide him over the crisis. Although he received ad-
vances, he knew on the 15th May that he was hopelessly
insolvent, and on that day he paid to his sister 1,9001.,
1,600/. of which was a dowry he had promised her in 186:5
or 1866, and the balance interest on the same. He made
other payments on the 19th May last, although on the
18th he had consulted his creditors with reference to his
bankruptcy, and on the 20th he intimated by circular to
creditors that he purposed stopping payment. He also
paid 1,0001. to Mr. Papayanm, and 2,0091. to another
creditor named Hazzopulo on bills. The reason Mr.
Couvelas assigned for handing over the bills of lading to
the defendant was that on the Ist May he promised that
gentleman that, in consideration of the transaction be-
tween them, he would make him a consignment of
goods.
The bankrupt was again examined with reference to the
state of his affaiis at the time of this transaction. The
examination was similar inpurport to that we have already
published relative to the trial of Saturday. He alluded to
Mr. Zolas as a personal and very intimate friend of his.
For the defendant Mr. Quain contended that there was
nothing to go to the jury, the nature of the transaction
between the bankrupt and Mr. Zolas being a distinct con-
tract, the advance on the 2nd May having been made on
the understanding that a consignment should take place.
The learned counsel submitted that hie lordship must,
therefore, either direct a nonsuit or a verdict for the de-
fendant.

The learned Judge thought there was a case to go to a
jury, because they were not bound to believe all that a
witness said in his examination, and it was for them to
say which part they believed if they did not believe all
that the bankrupt had stated.
Mr. Qunin then addressed the jury. for the defendant,
and urged that if they were of opinion that a contract
was made between the parties on the lstof May, there was
an end of the case.

The defendant was called to support the statement of
the learned counsel.

His LOWsiiip, in summing up the case, put it to the jury
whether the bankrupt made the payment in question in
contemplation of bankruptcy, with the determination to
prevent his property being distributed under his
bankruptcy rateably among all his ereditoas, and to
apply it to the benefit of the single creditor
whom he desired to favour. If he made it in the ordinary
way of Istyment, or under the influence of pressure or
application, it would negative the idea of fraud; and in
applying these principles to the case before them it would
be for the jury to t•ti). whether they came to the con-
clusion from the evidence that there was an anterior pro-
mise on the part of the bankrupt to pay the sum in ques-
tion to the defendant, and whether they believed he
really paid it bond fide in fulfilment of that promise., and
thee fultilled it; that would negative the idea of fiaudalent
pi (lei elite.
The Jury, after five minutes deliberation, found a
verdict for the plaintiff for the full amount claimed, his
lordship reseiving leave to Mr. Quain to apply for a non-
suit on the ground that there wee no evidence.
In the second action Paul 7.01 as and Pericles Sou-
vasoghi were the defendants. The same counsel were
engaged. The question that had to be tried had reference
to the validity of the poet-nuptial settlement made by
Couvelas on the Thal August, 1866, by which ho made
over to the defendants for his wife during her lifetime,
and to him after her death, all his household furniture
iind effects, with sonic jewellery, together with two shares
in two vessels; and which, with the exception of the goods
in which lie was at the time trading, was all the property
which he possessed. It was sought by the action to Net
aside this settlement, but the case was not over when our
parcel left.

THE POLICE COURTS.