Northern Times.
Liverpool, Merseyside, England, 1857-12-23 00:00:00

BEFORE MR. COMSIISSIONER STEVHNSON.

In re JOHN DonstaTr.—The adj )urtei certificate meeting
took place shorily after ten o'clock yesterday. Mr.
Deighton appeared for the bankrupt, and Mr. Aspinall
opposed. Mr. Deighton said he had to take a preliminary
objection to the proceedings, on the ground that there had
been no notice of opposition given on the part of any of
the creditors, and he was instructed that the present oppo-
sition was not on the part of any of the assigsees He
believed one cf the assignees was then present, and would
state that it was not an opposition up m his part, or upon
that of his en assignee. Mr. Aspinall said he appeared
upon the distinct instructions of one of the assignees. It
wss quite true that the other assignee was a personal friend
of the bankrupt, sod probably knew perfectly well how
guilty the bankrupt was, and would be very desirous that
he should not be exposed. Bat that was no reason, if it
were true, that the other assignee and the official assignee
should not do their duty. The course was not without
precedent, as the court would remember in the recent case
of Lamont and M Ltrty. His Honour said the authority
of one of the assignees was sufficient, and prima facie there
appeared to b 3 that autho.ity at present Mr. Deighton
asked that the assignee who was stated to have given
the authority should be sent for and examined upon
the point. Mr. Aspinall thought it a very extraordinary
course that when a solicitor appeared in ccurt, and
instructed counsel to state that he was authorised by one
of the assignees, his word should not be believed. Mr.
Deighton : I am not saying anything against the solicitor
He has only done what a solicitor ought to do under the
circumstances. His Honour : I think lam bound to assume
that when a professional man instructs counsel, he has tho
authority which he states. Mr. Pemberton said he
appeared on behalf of the trustees under the settle
merit. He had had a conversation with one of the
assignees, Mr. Moss, that morning, who told him
that he repudiated the opposition, and that he had
the same from his co-assignee, Under these circumstances,
he thought there was ground f r acme enquiry. His
Honour : I do not know that I can hear anybody, except
on behalf of the assignees or the bankrupt. Mr. Pember-
ton : I appear for a creditor who has proved His Honour :
But not to oppose. I do not know that you have any
locus standi. Mr Aspinall read the following letter, re-
ceived by Mr. Lowndes from Mr. Wilson, assignee :
" Dear Sir,—ln reference to Doherty's certificate meet-
ing, same of his friends ar t friends of mire; and it it were
cousistent with my position as trade assignee, appointed
ay ills Union Bank, and Messrs. Barred and Co., who
insi,ted upon a full enquiry, I would prefer being neutral,
but as matters sand 1 cannot identify myself either with
the bankrupt cr my co-assignee, and must leave the matter
in your hands, to do what is tight.—Yours very truly,
" JAMES WIL3 ,N.

" M. D. Lowndes, Esq., Der. 14th, 1857."
Mr. Aspinall observed that there was no single ground
cf opposition in any way personal either to the Union
Bank or to Messrs. Barned. His Honour said the
creditors naturally looked to the assignees to
perform their duty. If one of the assignee
declined to do so, and the other, although not very ener-
getic in the mater, was yet willing to perform the duty,
the court ought not to discoura pa it. Mr. Aspinall
observed that if there were the smallest doubt on the
point, the present was a case which differed so much from
• ordinary cases, that he should unquestionably auk the
court, upoa the objection, to give time, in order that notice
e might be given by the creditors. Mr. Deighton said he
had not the mealiest objection to go into all matters which
fairly related to the balance-sheet and the state of the
bankrupt. But he knew that the bankrupt had already been
: put upon hie trial, charged with a crime, and there was every
reason to believe that it was the intention to go into the
same matter agein that day in that Court. On that ground
he did not think he was interfering with justice when he
attemped to induce the Court not to go into the case ILs
Honour said if any ground of opposition should arise
which appeared objectionable, it would then be for him to
consider whether it was allowable or not. He scarcely
himself entertained a doubt that he was bound to go on,
but in any case he could not grant Mr. Aepinall's request,
unites the creditors could prove that they had been taken
by surprise. Mr. Deighton : The bankrupts estate
is perfectly open to the investigation of everybody.
Mr. Gregory, solicitor, applied for leave to issue a sum-
mons at sight to Mr. Wilson, the assignee, to show whether
he sanctioned the opposition. Mr. Aspinall thought it a
most extraordinary proceeding, after counsel had stated
that he appeared for a gentleman, that the fact should not
be:taken for granted. His Honour thought it was usual to
place a confidence in professional men. 11,e did not think
the Court could grant a summons on the ground that a
gentleman had asserted different from what a professional
man asserted Mr. Gregory : I am instructed to state,
that since the date of the letter, Mr. Wilson is not opposing.
His Honour : His he stated that he revoked his authority ?
Mr. Gregory :He stated that he was not opposing. That,
I think, is a revocation. Mr. Moss said Mr. Wilson had
stated that he would rather keep out of the way; and, no
doubt, if he were present, he would state that he had no
objection to Mr, Doherty's accounts. His Honcur : I think
Mr. Lowndes ought not to be placed in this position ; let
Mr. Wilson come, by all means. Mr Aspinall : I think,
upon our statement, that that letter is the het instruction
we have received ; the discussion as to what Mr. Wilson
May have said at any other time becomes perfeetly
immaterial. His Honour said, if Mr. Aspina'l and Mr.
Lowndes claimed to be dealt with according
to the general etiquette of the profession, he should
decide that the case go on without snmmoning Mr. Wilson.
Ma. Aspinall thought it would be derogating from the
position of the profession, if, after having stated that they
had received distinct instructions, Mr. Wilson were to be
sent for, for the purpose of fishing out whether he had
ever said anything to the contrary. His Honour said he
was bound to say the case ought to go on. Mr. Aspinall
said he would examine the bankrupt. His Honour said it
would be convenient, if Mr. Aspinall had no objection, to
state then what the grounds of opposition were. Mr.
Aspinall. said, -the first and most obvious objection
was, that the bankrupt had been guilty of the grossest
possible reckless trading, The second objection was, that
the bankrupt had granted certain fraudulent preferences,
and more especially one to the Borough Bank. The third
ground of opposition was in reference to the course of
dealing pursued by the bankrupt with the Borough Bank,
and more especially during the latter part of the transac
tions. Perhaps he had better at once state in what way
that question would arise. It appeared that the bankrupt
was in the habit of receiving from abroad very large
consignments cf produce of different descriptions.
and bills of lacing for that produces were, in the
ordinary course of business, sent from abroad,
and came into the hands here of parties who held them
as security until acceptances given by Mr. Doherty,
for the payment of the property, were guaranteed by some
parson whose name the vender was willing to take as
security. It appeared that Mr. Doherty, who had very
large transactions with the Borough Bank, was generally,
although not always, in the habit of going to the Borough
Beek, or sending there, in reference to such acceptances,
and the course of business was what would be indicated
by reading one of the letters which were addressed by him
to Mr. J. P. G. Smith, of the Borough Bank. The letter
was:—

"Dear sir,—On receipt of the undernamed bills of
lading for wheat from Messrs. Stern Brothers, please give
them a guarantee that my acceptancs to Mr. James
Doherty's draft will be paid at maturity. The wheat
is sold to Messrs. Henry Jump and Sons."
Now the bank, upon the receipt of such a communication,
would grant a guarantee. A very short time after, it
generally happened, !hat the bankrupt, Rho, from his long
course of dealing, had naturally acquired to a very eon-
siderble extent, the confidence of the Borough Bank, would
bring or send to the hank a letter, which was, in fact, a
receipt for the bills of lading, and by giving that receipt,
which si as usually to this effect—" I have this day received
from you, bills of lading," for so much, specifying the
produce, which is sold to Messrs. Henry Jump and Sons
and for which you will receive their acceptance, he would
be entrusted by the bank with the bills of lading Of
course Messrs. Jump required, before they woul part
with their acceptance, to have the bills of lading, of which
Mr. Doherty would, in that manner, obtain possession.
Now, he (Mr. Aspinall) should be able to show that for
some considerable time previous to the bankitiptcy, the
assertions thus made by the bankrupt had been, in a
perfectly surprising number cf cases, absolutely false '[ho
bankrupt bad not, in many instances, sold the corn to the
person to whom he represented that he had sold it ; but
upon obtaining the bills of lading from the Borough Bank,
pledged them or other property to obtain advances, and by
his representations, generally contrived to obtain from
the alleged purchasers their acceptances to send to the
Borough Bank, when required. In this way it would
be shown that he was sometimes obliged to
make away with portions of the estate. It would be shewn
that in a vast number of cases the Borough Bank had been
defrauded in a most infamous manner, and the necessary
consequences of these frauds were not only injurious
results to that bank, but to the general estate of the bat k-
rupt, because very often the bankrupt was obliged, having
made false statements, and obtained property by means of
false pretences, to give away other securities and other
property which belonged to his estate generally, to the
persons whose acceptances it was necessary to his credit
that he should get in order to keep up the belief of the Bo-
rough Bank in the truth of his allegations. These remarks
would, he believe d, apply not merely to one case, but
probably to 30 or 40 cases or more, involving a question of
a frightful amoun` of rcooey, Now there had been some- ,
thing said about a recent trial. No doubt it did happen