The British Press; or, Morning Literary Advertiser.
London, England, 1825-01-17 00:00:00

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BANKRUPTCY OF MARSH AND CO.
thitarday a meeting of the creditors of the baaloopts, Marsh,
thehato, Steamy, and Fauntieroy, took place at the Commis-
*doers' Court, Guildhall, for the purpose of proving debts, of as-
, venting et dissenting from the assignees commencing a suit in
equity against all necessary parties, for the recovery of the debt
claimed to be due to the estate of the bankrupts trim the estate of
Marsh and Son, Navy Agents, and to consider and determine
• upon sneh other measures as shall be deemed expedient with re-
ference to that clone' ; and also to assent to, or dissent from, the
axioms, compouoding certain debts due to the estate of the
bankrupts, Teem various persona whose names were stated to the
meeting t and also to assent to, or dissent from, the assignees
paving is full the wages of the several clerks adamants of the
lake bankin4-hones; and also to assent to, or dissent from, the
assignees selling by private contract certain property of the bank•
mots.
• At a quarter-past one o'clock, Mr. Bot.Lann, the principal RI.
signto. was voted into the Chair, and Mr. tiontioN, the solicitor
under the commission, ri-ad the advertisement from the Leodon Go.
Ifte - n-ftc, in pursuance of which this 'netting sari convened, and setting
forth the business intended to be submitted to it.
Mr. Gonoom proceeded to address the meeting upon the state of
the bankrupts' affairs. He said that en examining the books of
31ersh. Strscey, and Co. they found an account of a debt due to
that finn, from Minh and non. the wavy agents, which the se-
signers contended to'amoent to 73.50 b/. 18a. Bd. There was oa the
opposes side to be deducted an untie:swilled amount of certain se-
guinea supposed to be worth 10,300 L The question for the se.
_e dltors was, how they were to get at the balance of this debt
• • The advances of which this large sum was composed, had been
made by the late banking firm, in the year 101 A, upon this clear
understanding. that Mr. Marsh, sen. was to be, in fact, the
responsible patios in the navy-firm, and hits son, Mr. Arthur
Cuthbert Minh, to be only a nominal partner. the salaried ma.
surer, except upon a certain contingency, which had never or.-
. cared. The lank was always to look to Marsh, Pen. for the as►
nee. and not to Arthur Cuthbert Marsh, in whose name the as-
count was permitted to stand, to prevent its being mixed up
with the private account of Mr. Marsh in the firm. The Orin
of Marsh ant: Son suspended payment when the bank failed,
and the creditors of the former were informed, that, if the
alleged debt due to the bank were kept out of the claims, the
Navy Agency house would be able to meet all their debts in full,
and have a surplus of 30,000 L, which would pass to the separate
etre of Mr. Marsh, sen., and necessarily be evadable for the
auditor* of the banking concern. The creditors of Marsh and Son
ithea, of course, anxious to throw the banking creditors upon what.
surplus should remain after the payment in full of their own
s; but the assignees were of opinion that it would be better
the banking creditors to go in upon the whole of the estate,
• 'slither than on any contingent balance. A great many difficulties
had however arisen in the discussion to which this particular ques-
tion had given rise. and many cases had been submitted upon it to
lawyers, who had (littered exceedingly in their views of the mattes.
and, on the whole, given very little encouragement to go to law
upon the business. New light had broken upon the transaction
lately, and the assignees said that true the credit had been given to
Mr. Marsh, seri, only, hut it was also true, there was an under-
standing that Mr. Arthur Cuthbert Marsh should not be a partner
in the have Agency concern. Now that they found the junior Mr.
Marsh to have been substantially, a partner, they (the assignees)
conceited themselves clearly entitled to claim upon the partnership
assets. Mr. Heald was of opinion they had a clear right upon
Marsh and son. Mr. Bell was doubtful on the point. The
woo:flees, after giving the matter their best consideration, thought
it better to go before the Lord Chancellor fur so large a sum, sad
it sat for the creditors to sanction, or dissent from their opinion.
They must he aware of the uncertainty and inconvenience of a
Chancery suit; but there was every reason to hope, &lithe creditors
at each side were equally interested in the early decision upnn it,
thatrhe matter would be so arranged by mutual agreement for the
legal sonsideration, that they would be able to go straight forward,
,and have • derision without much loss of time. The meeting
seetild decide whether it were preferable to go to law, or abide by
. . th& oarplus io Marsh and Son's of airs? He ought to state that at
, a tweeting of the creditors bf the Navy Agency concern, held in
Snidand-yard on the 10th of Novembet, Sir Benjamin Hallowell la
the chair, a resolution was adopted to give Mr. Arthur Cothblet."
:Nasal a letter of license to go on winding up the affairs of his Imes.
tor 12 months.
A creditor remarked that in the 'citer of license Mr. A. C. 3larthi
was described as not being a partner, but a salaried clerk.
Mr. Oonnow replied, that the fact of Mr. Marsh, jun. bring fte
receive 0001. a-year " out of the profits," made him a partner, se-
cording to the Attorney-General's opinion.
A Gentleman, who maid he was interested for a creditor of the
Navy. Agency concern, declared that it was essential the creditors of
both firms should come to a speedy understanding upon this matter.
The creditors of Marsh and Son, although four months had elapsed
since elle suspension of their payments, as yet knew nothing of the
state of their affairs. They were uninformed about their assets.
There was certainly some delicacy to be observed in any detailed
statement of their accounts, for many of their debtors were naval
charactes of consideration, whose private ants ought net to be
unnecessarily exposed. But there ought to be some recognized
manager besides .Mr. Marsh, jun. himself, to look after their affairs.
Mr. Marsh himself might not to be die receiver nor the collector,
which was witch the same.
It was them suggested that whoever was appointed teceiyer or
collector, ought to glee adequate security for the due discharge of
his durv.
hit. Goanow said, that the assignees had received from the
solicitor to Marsh and Son, the copy of a draft of agreement for
the appointment of a receiver of the Navy Agency concern. And
It was suggested that it would be proper, if possible, to make one
of the gentlemen of 3lessrs. Coutts's bank that receiver; but upon
looking over the terms of the deed, it was discovered that the re-
ceiver was to be Ulnae responsible in some degree for the detail* of
the collection, arid this responsibility was declined by the firm of '
I ',sults, after consulting with their solicitor.
Mr. Bolatun, the Chairman, hoped that the creditors would
instruct the assignees how they were to proceed with regard to the
firm of Marsh and Son.
his. Kunio 3-, the other assignee, said that they were of opinion
they had both law and equity in proseeuting their claim upon the
general funds of the estate of Marsh and Son.
Mr. Ken:oft, the Solicitor, said, the ease was not quite so
clear—he anticipated many diliculties in the legal progress tat such
a cause, In consequence of Mr. Marsh, son. being a partner in both
firma and the peculiarity of the two accounts.
Me. BOLI.AND—We do not contemplate this difficulty, nor is It
started by our legal advisers.
Mr. KNIGHT—But you must meet it, and it had best be con-
sidered at the outset.
Mr. GORDON could not see this difficulty in the progress of the
Cause.
Mr. KNIGHT repeated his persuasion of the difficulty.
Mr. GORDON replied, that there were cases of two bankrupt
firms, the one claiming upon the other, with an identical party
common to both.
MT. KNIGHT said, that that had only occurred in the ease of
bills of exchange, and not where there was an open balance of ac-
coy at, as in this case.
Mr. Loan said that the creditors were incompetent to discuss
the legal technicalities of such a question, and therefore it was use-
less to delay the real business of the day, which was whether the
assignees should have the power of taking legal proceedings if they
thought proper foe the recovery of the debt due to the banking con.
cern. by Marsh and Son. To plain men it would certainly appear
extraordinary, if Mr. Marsh, sen. could take out of the bank of
which he woos partner, above 70,0001., and put it into another con.
cern for his own separate interest ; and that it could be then said,
lint banking creditors, after his bankruptcy, who had supplied this
large fund, were to have no claim upon the estate of the other con-
cern, established by money taken out of their own pockets. (Hear,
hear.) To shut out such a claim would, in fact, be to pick their
pockets. (Hear, hear.) To put it to rest, he moved that the
Mee'ing do consent and agree, that the assignees should prosecute,
• if they thought proper, a suit in equity, to recover payment of the
deb; due by Marsh and Son.
Mr. WlLsou seconded this motion.
Mr. FROST ridiculed the legal refinement which, it was said,
would impede their claim upon tire estate of Marsh and Son, and
complimented the assignees of the banking estate for the honour
and zeal they had shown in the discharge of their duty us behalf of
-the creditors. (Hear, hear.)
--The motion was then put and onattimously carried, and followed
by a resolution, recommending the appointment of a proper receiver
fir the assets of Marsh and Son, until the question between the
two estates should be adusted.
COMPOSITIONSj ICITII CREDITORS.
Mr. Kole; sir, the assignee, then submitted to the meeting the
propriety of their enabling the assignees to enter into composition
with certain creditors, whenever that mode of settlement should be
deemed convenient. He wished to state the risotto: of Sharpe and
Clarke. Marsh and Co. (the bankers) had discounted for them
paper to the amount of 1,0461. Is., of which Edginton, the coach-
man, sad two others, were the tors. Edginton had become
a brankrupt, and Sharpe and Clarke submitted their affhirs to
-heir creditors, and offered eight shillings in the pound. which all
lad agreed to accept save the assignees. Ought they now to accept
s out composition ? He rather thought, by agreeing to Sharpe and
,arke's Ofter, they would have a chance of making up the balance
is, Atic in the pound from other quarters. (Hear, bar.) There
v'd. also the ease of Mr. Tewson, of Percy-street, for whose accept-
" drawn by Mr. Fountain, they were offered a cash compost-
t sou of Ss. in the pound, which might also be a ted to fifteen
in another quarter. There was also Mr. flottebelf 11, drawn on
some foreigner, who offered ten shillings in the pound, and the be-
lance to be set oil against his claim on the bankrupt's estate. There
was Alr. Henry Joy. the builder, who owed one hundred pounds,
but all he wanted was time.
A resolution was then unanimously passed, giving the assignees
the discretionary power of assenting to the }reposed arrangements
io ell the above cases.
FULL PAYMENT OF THE CLERKS.
Mr. Eirittur, assignee, Paid that he had sow to advert to a ease,
in which both custom and justice sanctioned the full payment : it
was for the arrears due for salaries and wages to clerks and servants
or the late Bank in Demers-street. The case of Mr. Watson, the
boek.lieeper, was rather peculiar. His salary was 4001. per year,
and those quartets of it waedue to hint for the year 11124. when the
bank had stopped payment ; besides this land there we. the pecu-
liarity) there were due to him a balance of `-'2l/. which stood hi his
mares. out of hit :slaty, at the Christmas of 41123. Ile then read
a Irtin from Mr. Watson to the assignees, in which he threw him.
self upon their consideration fur the balance, as well as the current
yesea portion of salary, the former having in fact accrued front the
Geary of the preceding yes.
Some conversation arose among the coeditors, ma to the pro-,

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