The Sun.
London, England, 1855-06-01 00:00:00

ABSCONDING B.ANKRUPTS.-IMPOR-
TA NT CASE.

At Guildhall yesterday Daniel Mitchell Davidson and
Cosmo Wm. Gordon, wito lately carried on business as
general merchants and metal brokers at Cousin-lane and
Mincing-lane, London, and as distillers at West Ham,
Essex, were placed at the bar for further exa nination,
relative to the charges of absconding from thiir liabili-
ties, which ara said to amount to about 500,0001., with
uttering forged spelter warrants, with concealing their
effects, and with obtaining, by false pretences, goods to
a large amount on •redit within three months of their
bankruptcy, with intent to cheat and defined their cre-
ditors.

Sir Peter Laurie presided, and Sir R. W. Carden and
Alderman Humphery were present during the proceed-
ings. The cou►t, as on the former occasion, was densely
crowded by merchants, bankers, and other commercial
gentlemen of high respectability and position in the
City, who appeared to take a lively interest in this im-
portant investigation.

Mr. Ballantine, instructed by Messrs. Linklater, ap-
peared for the prosecution.
Mr. Bodkin, instructed by Mr. Humphreys, appeared
for Davidson, and Mr. Clarkson for Gordon.
Mr. Edwin James, Q.C., attended to watch the pro-
ceedings on behalf of Messrs. Overend, Gamey, and Co.,
in consequence of certain remarks made by Mr. Ballan-
tine, imputing motives of a not very upright character to
the firm in their transactions with the prisoners.
Mr. Ballantine said—ln connection with the. case I
mentioned when I was last before you, Sir Peter, there
are one or two matters in regard to Mr. Chapman (of the
firm of Overend, Gurney, and Co.), who was examined as
a witness, which requiras some explanation, Mr. Chap-
man must have been under, some misapprehension, be-
cause it will be in your recoltection that he conveyed
to you that the .firm of Overend, Gurney, and Co. had
no connection with Davidson and. Gordon after Oc-
tober, 1858. The bankrupts' books are here, and I
shall show to you that discounts took place since then
to a • very large extent. There is another mat-
ter
I think it right to mention, because a highly •
respectable solicitor must also have been under some
misapprehension. It was stated by Mr. Chapman that
they would have nothing whatever to 'do with the busi-
ness of the prisoners' distillery, and the reason given
was one of'a in• ral character. It seems to have been
conveyed that the title-deeds of the distillery had never
been held by Mr. Chapman on the part of Overend,
Gurney, and Co: An agreement is in the hands of Mr.
Linklater, by which the leases are conveyed to Mr.
Chapman, for the benefit of Overend, Gurney, and Co.,
and that agreement is in the handwriting of Mr. -Val-
hugs, the solicitor to Overend, Gurney, and Co. It is
right that these matters should be known ; and having
proved thi. I shall introduce another caie of obtaining
goods fraudulently to a very considerable amount,
and another transaction, which it is. not necessary for
me now to explain, but which will make out that these
bankrupts knew the • fact that these warrants were
fraudulent.

• Chas. Walker was then called, and having been sworn
said—l was clerk to Dav dson and Gordon. I kept
' their books. I have a memorandum in them books
of transactions with Overend, Gurney, and Co., after
October, 1853. 'ln the bill-book I find a draft for 5021.
25., purporting to have been discounted by Overend,
Gurney, and Co., on the 20th of November, 1853. There
are alFio memoranda of drafts discounted for 1601. on the
3d December, 1853 ;• 276/ 15s. 9d: on the 12th ; and
1.0801. 145.,9d. on the 13th of the same month ; 1,4381.
15s. 6d, on the 2d of January, 1854 ; 365/. 14s. 6d.,
and 5791. lie. 9d: on the 3d ot -the same month ; 3001.
on the 10th of February, 1854 ; 1,0001., and 3831. 17s.
6d. on the 27th of March in the same year; and 1,4501.
on the 3d of April, 1854. The discounts upon all these
drafts were paid into, the prisoners' bankers, Barnett, "
Hoare' and Co.'
Sir Peter Laurie—What is the total amount of all
these drafts ?-
Mr. hallantine—About 8,000/.
Mr. -railings said-2---I know the agreement produced.
The corrections are in the handwriting of Mr. Young,
but the agreement was altered and signed by me as
acting for Overend, Gurney, and Co. •
The agreement was then read, and purported to con-
tain the mutual consent of Nicholson and Co. ;,Overend, •
Gurney, and Co., Mr. Wehb, the assignees of Cole
Brothers, and the assignees of Davidson and Gordon, to
the unreserved sale of the distillery, which was.about to
be sold by the auctioneer for the duty owing to the
Crown ; and that the balance of the proceeds of such
sale, after paying the duty, should be paid into the bank
to the account of the consenting parties to the agree-
ment, without prej'idice to their respective right's.
Mr. EAwin Jainea bore, rose and said:—l do not pro-
pose—and, in pi:lint of fact, I have no right—to take
part in this discussion with reference to the prosecution
of the prisoners at the bar ' • but I-have come here on
behalf of Mesizs. Overend, Gurney, and Co., merely
to ask your indulgence' that no observations 'be made
in reference to them in these transactions ,until the
whole of the evidence has been gone trough, I
am certain that even before the evidence is com-
pleted the character of Messrs. Orerend, Gurney, and
Co., is perfectly safe in your hands, sir; and the public)
will suspend their judgment until the whole of the evi-
dence is-adduced before you. If any remark-, should be
made by the City, Messrs. Chapman, Overend, and Gur-
ney are able to explain ; and I arts sure, feeling your
a nse of justice, and my friend Mr. Ballantina's fairness,
that, no imputations will be made. I merely ask you, if
Mr. Chapman should be put.in the witness-box, to al-
low me to suggest questions with regard to 'his conduct
in this matter. Mr. Chapman is perfectly willing to meet
any proceedings that may, be taken against him ; and I
have only to ask that• no• further imputations shall be
made beyond that which the evidence will justify. I
think my friend will allow that the agreement which has
just been read was executed after the bankruptcy ot the
rrisonere, and I am sure he will not object to Mr. Chap-
man explaining it, which he is perfectly able to do.
Mr. Ballantine said—l put this agreement in merely
to show, that, by becoming parties to it, Overend, Gur-
ney, and Co. recognised their title to the distillery, al-
though they had previously declined to have anything to
do with it. •

Sir Peter Laurie said—l allowed Mr. Chapman to ex-
plain himself on every occasion of his coming before me,
notwithstanding it was objected to ; and Mr. Chapman
expre-sed himself very much obliged to me for it.
Mr. Edwin Jtmes'said—l do nut, mean tOsay that yqu •
would not act.with fairness; but I am sure you will nOt
allow any house, like this to be.injured by any imputa-
tions that may be thrown out here.
Mr. Ballantine said—lf these facts are in favour of
Mr. Chapman, he will have the verdict of the City, and
nothing that n counsel would say would make any im-
pression ; but if against him, they would most certainly
condemn him.
Mr. Edwin James—That is all I require.
Mr. Ballantine—l assure you that I have considered
every word I.have spoken in this case ; because no coun-
sel ought to injure a person, unless in the discharge of
his duty. There is not a word that I desire to withdraw ;
and all that I have, hitherto said I stilt adhere to.
Mr. Valliogs was re-examined, but spoke so low that
the reporter Nutt! it impossible to catch distinctly what
he said ; but he was underttood to say that he retained
possession of certain deeds connected with the distillery
on behalf of Overend, Gurney, and Co.
W. Horry said—l am a supervisor in the excise. I
was at the West Ham Distillery in June, 1854. I pro-
duce a warrant, granted by two county magistrates, to
levy for 14,000/., flouble the amount of duty due, which
was 7,4221. 17s. 2d. On Saturday, the 17th of June,
1854, I received from Davidson and Gordon's clerk a
cheque on Barnett, Hoare, and Co., for 2,0701. for duty
on spirits going, out that morning. That cheque was
presented on the same day, about two o'clock, and not
paid. There were cheques to the amount of 7,4201.
that were dishonoured,
Cross examined by Mr. Bodkin--The reason given for
not paying the cheque was that the funds in their hands
were attached. Tne cheques were presented at the
bank, but not by me, and I, therefore, do not know the
answer.

Richard. Simpkins am partner in the firm of
Simpkins and Isaac, of Goldsmith-street, London. In
January, 1854; the prisoners bought some turkey-red
cambric. The order was given for about 3,000/. to 4,0001.
We supplied the first delivery for about 2,0001. Gordon
said he wanted them fOr shipment to their correspondeOt
in Calcutta. The first portion of these goods was deli-
vered on the 20th of March, 1854, and a second port*
about the 20th of April in the same year. The first por-
tion amounting to 1,8001., was paid for in cash. We
made a subsequent delivery about the 20th of April to
the amount of 1,4001., and we took acceptances for
two-thirds of that amount. The rest was paid in cash.
One of the acceptances was paid. They gave us a fur-
ther order for goods to the amount of 2001., to be deli-
vered about the Ist of June, but from information I re-
ceived I detained them.

HenryJOhn Todd said—l carry on business in Pancras-
lane. In May, 1854, I was agent to Pickford, 'Johnson, and
Co., ofManchester. I received an order from the priaoneri
to deliver 19 cases of printed cotton and two cases of
muslin. I received that order from Gordon. The cottons

amount,to 1,7191., and the muslin to 346/. I under-
stood they were to be shipped to India. Gordon _told
mdso. I never got any money tor these goods, and we
are, therefore, creditors to that, amount.
Wm. Beddows said—l am commission agent in Hug-
gin-lane. In May, 1864, I was agent to Russell, Doug-
las, and Co., of Bradford, in Yorkshire. From what
my clerk told me I supplied them with goods to the

of 4261. on the
amount of 1,397/.
Ni'Milian, of Glasgow. Neither
I also supplied goods to the amount
of these amounts have bean paid.
ai o
ist a lo3m
ordersan inof thethe
premploy-ison
of N r.
Nathanielßeddows. Davisl said—t
Itoasmol
ers in May, 1854. I saw Gordon, and he said he was not
in a position to give me an order then, but if I would
call again he might be able to do so. I called several
times, and ultimately 'received an order from him for
about 3,0001. That would have been the amount, if it had
been executed. I should think it was about three weeks
before they left London. The amounts of.
supplied were 1,3971. and 4261. goods
They said the goods
were required for shipment to India.
Charles Walker, recalled, said*
I remember the goods
from Russell and Co. being sent to the docks to the
amount of 1,3971. Ido not know if any advances were