The Northern Daily Times.
Liverpool, Merseyside, England, 1857-04-22 00:00:00

BANKRUPTCY COURT.

LIVERPOOL.
BEFORE MR. COMMISSIONER STEVENSON.
In re IVLARTY AND CO.—The last examination meeting
in thin case was resumed yesterday. Me. Fletcher at-
tended on behalf of the assignees ; Mr. Almond for Mr.
M‘Larty ; Mr. E. Banner for Mr. Lament, and Mr. John
Yates, jun., for Mr. John Mliean. Mr. M'Kean and Me.
Laruoet having been examined, Mr. Almond said that he
now proposed that Mr. M‘Larty should sign the
balance sheet of the other two partners in the firm, he
being allowed at the same time to protest against the
adoption of those items which were in dispute between
them—he meant the proportion of the losses against Mr.
INPLarty, sen. and Mr. Macmillan. Mr. Banner observed
that that was the arrangement which had been proposed
at first. Mr, Almond continued to say that Mr. M`Larty
was prepared to do so, if -the court thought necessary ;
bat he (Mr. Almond) thought it better that the
belave sheet, which he had himself filed,
should be altered, the alterations being made in red ink,
and under protest, so as to correspond with the other
balance sheet. His Honor replied that either course would
do. Mr. Fletcher put it to the court whether, on the
balance sheets then before it, the bankrupts could be
allowed to pass. The transactions of the firm were very
large, particularly in the last two and half years, but the
books had not been regularly written up ; and it, therefore,
appeared to him that the court would be hardly justified
in taking the balance sheets as a satisfactory statement of
their accounts. Whether Mr. M•Larty was right in saying
that his father was not au owner in the aeopatra, and
should not, therefore, be debited with his share of the
loss on that ship, was a question which could not be decided
there. The question in regard to Mr. Macmillan was also
a very important one, involving some thousands of pounds ;
but it was one of those upon which the bankrupts
greatly differed. Mr. Macmillan claimed to be a cre-
ditor far £lO,OOO. His beother in law, Mr. M'Larty, put
him down as a creditor for £4,500, but the other two
bankrupts put him down as a debtor. He could not
reconcile these, discrepancies, and he therefore put it to
the court whether the bankrupts cnild be considered to
have made a full disclosure of their estate, and could
pass, on their present balance sheet. Mr. Almond replied
that it required very few words, so far as his client, or
indeed all the bankrupts, we-e concerned, to dispose of
Mr. Fletcher's objection. They had it as a fact that
since September last up to the present the bankrupts had
devoted all their time and attention to the investigation
of their affairs. No complaint had been made in that
respect, nor could there have been. There was no desire
on their part to withhold anything—no desire to avoid any
examination on the part of the assignees, and when they
were thus prepared to give the fullest history of their
affairs, and had alreaiv done so, he could not see how Mr.
Fletcher could say they bad not made a fall disclosure.
As to the discrepancy in regard to Mr. Macmillan's
account, the Court could not fail to see that it had been a
bone of contention among the partners ever since it arose,
and that, in fact, it could not be settled until the bank-
ruptcy happened. One could also understand why there
should be a difficulty in regard to Mr. M‘Larty, senior—to
debiting him with a proportion of the loss on the " Cleo-
patra," but as to the amount of that loss there could not
be a doubt, for they had not only the bottomry bond but
also the purser's account. It might be that theirbooks had
no-, been kept regularly written up, but however that might be
used in argumo at on the certificate, it could not be urged
as an objection to their passing. Mr. Yates said that h s
difficulty was to find out what he wag to answer. Mr.
Fletcher wondered how they had been able to make out
a balance sheet at all ; but then the balance sheet was
complete in every particular, and fairly entitled them to
pass. As to the books, they were well and correctly kept
so far as they went, although they were somewhat behind.
His Honour asked what had occasioned the long delay
in filing the balance sheet? Mr. 'Banner replied, that
the books were well and correctly kept except for the
twelve months bcfore the last six months. Th it was the
cauf,e of the delay, but he was told by Mr. Bleass, the
accountant, that though they had taken a long time to
make up, they had been male up in a proper way and not
by guess work. Ills Honour : As I un lerstand Mr.
Fietcher, he is astonished, the books having been
irregularly kept for a certain time, how all these items
were supplied. Mr. Banner: That is easily explained
The cash book was written up from the firs', from
beginning to end. Mr. Ta mer (otficiel assignee) : Yes,
the cash batik is written to from the fit st. His Honour :
That is very important and satisateatry, Bur, how does
it appear that one party mikes Mr. Macmillan a creditor,
aial the other a debtor. Mr. Andersou, who attended on
behalf of Mr. Macinit'art, said that the qaestion was,
whether or not M. Macmillan should be debited with
certain losses accruing upon the Cleopatra in Australia.
His Honour: Then it is a question of law, and it appears
that they have made a full disclosure of their estate, though
they take a different view of things. Mr. Almond rep Led
that that was the case, The contention in regard to Mr.
Al'Larty, senior, wat whether certain transfers were actual
bills of sale or securities. His Honour observed that that
being so, it came to be a legal c instractioa altogether, and
he could not, therefore, consider that there could be any
objection to the bankrupts passing. Tae last examination
was then passed, and the 20th of May fixed for the cer
tificate meeting.