The Express.
London, England, 1861-03-06 00:00:00

• ox times their capital. Ifni the debt. of Omni
• been good, the loukrupt.. capital at the beginning
p,-.7 would bare been upwards of 100,01 AW. In the
ei• t odd, 'rue of the tens several of the failed
mud the Loudon house of the bankrupt were
in, hest at the beginning of 1n.17. Their °Ply legitimate
•1...4 carryiu,; kismet. then sae by ceasing to grist
•tlier surplice to the failed homes. Indeed of this they
Ivl erreausl the debt in every case. Leonine admitted
.1 in lalit he knew .4 the insolvency of Smith, Petient.
Smith, and .1. 11. smith and Co. Was it ounsi.tent
, 0, the interests of trade that persons should goon mincing
le stin's and obtaiuing discounts on baud' of tree issolveot
Reference had been node to the case r 4 T. H.
tb.rtilnore, meetly before the t'ourt of Appal; and it
• meteuleil that if be was justified in going mso were
et. lsoikruote. But the Latter case involved a pare
from which T. H. Mortimon, was exempt la the
',its and a half preceihug the failure the avenge
, •.,1 the lookrupte had bees 130,000 f. in
ti..• London Irene, and 57,000/. ha the Liver
1 • se-. The trwle tratosictions in that peried't
rmeointel 1.'04..1011.W., of which 2741110.. was with awl
houw, a, to the Lemke house ; and as to the Liver-
p." home* the everage annual trananteins were
st..l with failed homes. This showed that the
I.nerpool house had narrowest its translations with the
lames The loans lead gone m inertia...log. In
the lost three years and a half the advances to Smith,
Patient, sal Smith, had leen an average of :IMMO—
yeah, to Herbert Smith, 2110,011nt ; and to T. 11. Mortb
more, 131,0111 it. The regular trade transactions in the'
Led dj ymni Lot lees lame and pa... Molar ; but the ileid•
imp with the failed firms hal been to the extent of up.
wards of eight millions on one side, cal 7,f1C0.0•1,. no the
other. These amounts included the renewals .4 bills.
The avenge amount .4 bills in circulation at the bankruptcy
was upwards id fsllktisti. The amount then owing by the
failed firms had more than doliblesl. having Mamas' from
367.1010 f. to 774.5441/. Part this iodehtedoese cooeisted
el interest and comedown no leo than 150.0001. The
debt. of the Ox firm. due 4. the Lingual house
had increase! sine, 1.‹.7. from 4.1,001.1/. to
It:f..t•W. Thu. the Lesbos hours had credit
to y.,/.-.1 firms to bye times lteaaweisat
.4 its 1.4 r 4. 41 e..p.tal ID the threeendselmlf years
1.4.. we the failure, eiel the Liverpool homer hod gives credit
t.. twire than amount. Looking lathe eadepude premises
I r Lol the whole of the capital at have bests
beg ago. (hie of the witneines, Mr. Tbousil had
Gis t. au exaggerated view of the private property the
passer.. hut ruder this, however large it might
h.ie hien, hail lives brought into the firm, the firm woe
1.g..11r iseolvest. The portion of the house new
...noel to be tho Praxis oa the London estate,
.1 whs.+ 4411ih11an. were Oa acceptance' of the failed bowies;
spet..l to be malie...L 1.04,1110. Proof. on the Li. eq..'
• I:ss,IRSII., .4 which I.lo,otrui. were on acceptances
.4 the Wed homes ; amount expected to be realised,
Visini the private estates a surples et about
toile.. was ea pt...teal. The divider" on the Louden
redd be about ate. ed. is the proud • on the
Liverpool house. 4.. ffsl. The asempis dry of ilia
of the inns trusted by the Leedom her was
few tam the count .4 the lamer emir' they bad
kel . • Smith and Pasent's 4.44 aloe, was 11kt,0001., and
that..4J. H. neeith„, 110,010 It would have prevented
nieh ran if the Isaakrupte superb.(payment in 11457 ;
hol they dere an it would have lees much better for the
cielitoea la the astrama f 18.-f7 came the tunic, when
endat received a wren shock. The Lau krupts were called
4. mist soma t 4 the failed houses, with some of whom
sue were TAM& There was Do objectors to a factor
noting adValiCee on reds to hie principals ; but to *sable
the bankrupt.' to make there advancer, they had resorted to
o .”tere d diecoust awl rediscount, which must 'Mewl
ruin far awl wide. The Leedom Joint-dock Honk had both
edi....ant and a entTelli ariallat with the bankrupt. ; Ley.
beef anal Outline send is the esme potation to the Liverpool
bsi-e. The diwount houses badgeat reason to complained
Are Laumece. Ile was in high repute' and bad
teolered to them balls fur discount which had every
appearaoce of representing trade tramactions. NO blame
shaelled to the honkers. Thaw discount trainme-
n.. hol leen pen{ re for yean. and thus the ("mildews,
a the iliscrunters establiehed. The bills of the failed
lotus* tied been distributed amiespd 29 teaks and diseestet
houses, animating in the eggerfate to tr.l. 1.0001. far
the Lorton house, ao.I il),onow, or the Liver 00l hews.
Of them bills 00 les. an anemia than 40,1X110f. had UM
weepiest for the aceommodation of the two Mama
Noche of the acaepton were in a position to
take op them bilk and the bankrupts' knew
this All thew bills had bees alaseuented is
Iwo, several vets shortly before the haakreptcy, sal Wan
so late as the ',kith of Joao (the faders being on the
:eel of July), secluding weepier:to of J. H. Smith. Gib.'
• Barton. Smith awl Patisek sad R. and J. Clarke.
The Isonlou Joist-Mock Bank the Bask of Lon.
the National Ineemat Company, and Messrs. Levies(' •
wet Sullins, bad all proved for barge amount. on accep-
tances of the failed houses. Only four days after
the best dist-met of balls in Leodoe, on the 30th of
Jana, Mersa. Turynond east Thomas prepared a state-
meal of .'fain, showing a deficiency of lioo,oolf.
and jest before that time luarewee wrote to
iskwdr saying he knew not what might hap.
pre hoes day to day. Laurence had stated in his
esagnimilen that he believed himself solvent up to
lb, el d 1111 stoppage; but no rational man couhl have be-
lieved that. It had been argued that renewals were
net reeemesuheies bills ; but whether or not, they we,* a
awe of area. When Lemnos obtoined the later
le knew of the failure of Gibson end Deaper,
sod the inability of other houses ho meet their
envommata. kfortimore was acquaints,' with the
genewl treessetioas of the bowie ; he took an active part is
and selling, and was consulted on certain matters
relatieg to the finance of the home. la the middle of June
be had been informed by Leuresee of the difficulty
of obtaining diaconate, and be had himself obtaiseal the last
docouut from the Beek of &gloat The conduct et
Lunar. In hleisterekrw with Mr. Marshall. with reformism
to the position cif J. H. Smith was a allipfessioveri, if ant a
falai. Lawmen sail Mortimer. must have well
keen the pertice of the Liverpool house, and Schroder
owl in relied us their abilities tourist Its engagement. The
inidenee of the beakers mad discounters was not
sufficient to prove fraud in any particular transaction ; the
rspnsentatione were too general. Thee* had been nothieg
kneel a general representation of peat wealth . • but Lau-
rence well Imew that the of many of the
relating Gilson. Smith, sad were irresponsible bilis,
aad
Medusa. This must be treated as a fraud on the beares
where the bills had hero indorsed by the Loudon house. The
trumetions with Leybual sad Bullies did net apc
to involve heal in any perticular transaction.
trust .4 *header in the Loudon home was sot a Judith:s-
tun of the cause be had pursued. Other aireumataaom In
the case more partiodsrlv affected Laurence, as the ficti-
tieus transfer of 50.0Uef. from one account to
another (of which Mr. Mortimore knew nothing),
ale. the alterations in the hooks of the amounts to
drawn for -the loan of 10.011/. temtracted with the City
Kink, sal a ken of Al,OUtlf. from trveremi, I :UrINT, and
t'o. on the deposit of securities, which were thereby
withdrawn from the bull of the creditors. Takeo
altegether thew circumstances were very blameable.
With the exeeptiou of the instances referral to,
the hawk. had hero well kept. The rlnwitimi el the hook-
tepee hail Dot been Caere....... The post nuptial settlement,
nada by Schrader, had bees done in the ordinary course,
sal with the u.ual precautious as to advency.
Ifortinewe bad withdrawn no portion of his estate
from the creditors. All the bankrupts bad since the
bankruptcy given all the. Resistance in their power to
the siniguees. to the first instance the bankrupt Laurence
appeared to have been led away by the prospect of
raceme, large iaterest on advances. Against
Mortise"... there was no direct evidence of fraud, but he
meat have shut hie eyes to what era' going °a. The court
was .4 opium that ll...charge of reek's.s trading of theniost
nowhievoin kind had Imes setaldidied straiten all the bask-
rept', sal that the charge of wilful miereprauentation sad
kr rieeni twit been established against Laurence.
iii. eortoct Is obtaimag discount of the bills of
the f tiled homes eleeely approached to oblate- '
lag nemey by fah. pretence.. His offence was
much stalemated by the high position in which he had ,
etool selowler's cooluct in the tranautioes with
Leelasil aid Rollie was extremely blameable. The
court was hoOnd to eassider the whole of the
cornet of a lookrupe, before reed after the bankrepte7,
• ha. 404 when into coesideratioe the diffenot degrease/
eiliaMlity et the bankrupt., the court ordered Ant rat
.. 'wiener of the terokropt La :era, ahoitel 04 int fried ; that
,:ertOtneer of .Vortooort to ...annuli./ 1., onir areafro.
Orr/ Jaeof henna!, sad that of Sehosafer fer tiro
• re loom the raw permit As to Pupil...mutest
'serener would he at liberty to apply for protectine after
he bad hem in priors fee as riuntlis ; Marmon would
ken protraction ; sehrsder might apOy to the mart for '
issceetion after he Tel bee without it for three
The eertifestes of Merresons awl Schrader,
ekes zeserel, would he of tie third era Hie Homer
c001...1ed by some remarks es the hupolicy of private
wrampsenda in came of this eaten.
tawnier* asked the .out to withhold the issue' of
a H A eertiltinitil for 21 days.
Hr. Meerm, Mr. I Tarte, aad Mr. Lisklater did sot ob.
act to IL.. roam being permed.
Ho Hems granted the embodies.
Hr. Linklater asked for the code of the opposing
troldoes

M. Mum, 41.1.1 to tMM swim Mat allowed. amid
Inint.s• eight mad ewer.
It ana• ....reseed that tM queitima mlmmakt M disclaimed at
a Laura *sit*.