The Sun.
London, England, 1855-12-11 00:00:00

THE SUN, LONDON, TUESDAY EVENIPICI, DECEMBER 11, 1855,

STRAHAN, PAUL, AND CO.

BANKRUPTCY COURT.-(THIS DAY.)

This was a meeting- for the last examination and de-
claration of dividend in the case of these bankrupts,
who formerly carried on business in the Strand as
bankers.

The bankrupts were brought to the court in custody,
but the balance sheet only being filed at this sitting of
the court, they were not brought before the Commis-
sioner for examination.

Proofs, to a considerable amount, were again ten-
dered to-day and received, and consequently the divi-
dend is adjourned. Amongst the claimants to prove
was Dr. Griffiths, for the amount of the securities be-
longing to him misappropriated by the bankrupts.
The following report, furnished by Mr. Turquand,
the accountant to the assignees, detailing the " rise,
progress, and fall" of this house, will be read with in-
terest :

" 13, Old Jewry-chambers, 10th Dec., 1855.
" To the Assignees of the Estate of Messrs. Strahan, Paul,

and Bates.

" Gentlemen,---I beg to make the following report of
my investigation of the books of Messrs. Strahan, Paul, and
Bates :

g` REPORT.

" The bank of Messrs. Strahan and Co. was ens of the
oldest on record, dating its origin from the early
part of the reign of King Charles 11. At the time of the
bankruptcy the firm consisted of William Stratum, Sir J.
D. Paul, and Robert Meakin Bates. Sir J. D. Paul (then
Mr. Paul) became a nominal partner in 1823, taking no
share of the profits until the death of his father, the late
Sir J. D. Paul, in January, 1862. The firm was composed
of Robert Snow, Sir J. D. Paul, and J. D. Paul. William
Strahan, who had changed his name from Snow on in.
heriting a very considerable property from his uncle in
1831, joined the above firm with his brother, Robert
Snow, in 1832. Robert Snow, sen., died in 1835. Robt.
Snow, jun., retired from the bank in IS4I. In January,
1842, Robert M. Bates, who had for very many years been
a confidential clerk in the bank, became a nominal part-
ner at a salary of 8301. por annum, subsequently increased
to 1,0001., without any share in the profits. It is not
necessary, for the purpose of elucidating the present posi-
tion of the bank, to go further back than the partnership
of Robert Snow, William Sandby, and John D. Paul,
formed in 1813. On the death of Mr. Sandby in 1816, the
partners were indebted to the bank in a sum of 29,0001.,
which was apportioned in the following manner;—
Robert Snow
William Sandby 8,989 2 6
John Dean Paul

£29,000 0 0
The debt of Mr. Sandby was paid off by his executors by
the end of the year 1826. At that period the debt due by
the remaining partners had been increased to 53,6001.
which was apportioned in the following manner : -
Robert Snow 36,3191. 103. 9d.
The late Sir J. D. Paul

53,600/. Os. Od.

" The debt waz represented by a joint note of the two,
by an arrangement between themselves, and acquiesced in
by succeeding partners. The amount was to be considered
as a debt duo, to the bank, to be gradually liquidated by a
certain portion being carried every year to profit and loss.
By this means, at the death of the late Sir J. D. Paul, the
debt had been reduced to 28,500/. ; and at the date of the
bankruptcy had been further reduced to the sum of
23,5001.
" The balance-sheet now filed commenced on the 31st
December, 1851, showing a deficiency of 71,990/. 7s. 2d.
Deduct the amount then standing to the credit of Mr.
Strahan's capital account, 10,3301. 68 ld, lees the amounts
to the debts of the present Sir J. D. Paul, 2131. 133. Bd.;
and B. M. Bates (loan) 3,6691. 4s. 4d. (3,882/ 18s.)
6,4471. Bs. ld., loft an actual deficiency between assets
and liabilities of 65,5421. 19s. ld.

" This deficiency appears to have been composed of the
following items—viz., balance due en a joint estate
28,500'., debt due by the late Sir I.D.Paul 35,4771.125.1 d.,
less balance of subsequent receipts and payments to the
credit of his account 10,0841. 153. sd. to 25,3921. 16s. Bd.,
bad and doubtful d,bts not written off 2,4 led., ditto Hal-
ford and Co. 15,7051. Vs. Bd., estimated loss on valuation
of bank assets 4,3,19/. Is. 6d., total 76,4131. 10s. 10d.
Deduct amount standing to credit of balances written off
or unclaimed 4,07 1. 48. lld., Halford and Co.'s alleged
surplus as shown by books 3191. 19s. 7d., balance to credit
of Pm:bier's account 6,447/.85.1d., making 10,870/.118.9d.,
and a total of 65,5421. 19s. ld.
" It should be remembered that there is one item in-
cluded in the assets at its full amount, the actual value of
which would materially affect the above partition, and
that is a sum appearing to the debit of Lord Mostyn, of
92,0011. 16s. 10d. Between the years 1818 and 1850 large
advances had been made, and in January, 1850, a lease of
the property, known as the Mostyn colliery, was granted
by Lord Mostyn to the Bank, to secure a sum of 67,5411.
14s. 8(1. then due by him.
" The colliery required very considerable outlay to
bring it into productive condition, and upwards of 45,0001,
was so expended by the,Balak with this expenditure and
arrears of interest, the amount to the debit of the account
at the time of the bankruptcy was 134,9101. 17s. Id.
The colliery had just been brought into a pro-
ductive state, yielding, however, only sufficient to
cover expenses and pay the interest on the sum of 45,0001.,
which had been borrowed by the bank on the security of
the lease to meet the necessary outlay. Taking the amount
thus borrowed as an indication of the value of the assets,
the deficiency of. the bank world be increased to about
110,0001. At this date, however, William Strahan was
possessed of unincumbered private property to the extent
of upwards of 100,0001., Sir J. D. Paul about 30,000/., and
R. M. Bates about sufficient to cover his debt due to the
bank, 3,0001. Taking into consideration the security thus
afforded to customers by the value of their private
property, it may be inferred that the bank might,
with care and providence, have recovered its position.
The unfortunate connection, liolever, with Messrs.
J. H. and E. F. Gandell, commencing in 1852,
andresultiug, at the date of the bankruptcy, in a debt
to the bank of 269,382/. 3s. 5d., with liabilities in addi-
tion on the account to the extent of 103,8701., coupled
with the already heavy withdrawal of capital in respect
of Lord Mostyn's colliery, may be fairly looked upon as
the causes which brought about the disastrous failure of
the bank.

" Messrs. Strahan and Co. were induced, by the repre-
sentations made to them of Messrs. Gandell and Co., to
advance from time to time large sums of money for the
purpose of enabling them to carry out certain contracts
for the construction of railways in France and in Italy,
and for the drainage bf Lake Capestang, situated in the
South of France.. .The profit to be derived by Messrs.
Stralian and Co., ou the transactions was 5 per cent. in-
terest, and one-half per cent. commission on all payments
made by them, and the payment of a debt of I,SOO/. con-
sidered bad, due by J. H. Ganda'', due to the bank in
1850.

" The debt to the bank for which no tangible security
was held, soon assumed such gigantic dimensions, and
Messrs. Gandell's affairs were found to be in that condition
that Messrs. Strahan, Paul, and Co., imagined they had
no alternative left bnt to continue their advances
for the purpose of maintaining Messrs. Gandell in a
position to carry on the various contracts, the completion
of which was calculated as a source from which the -vast
sums advanced were to be recovered.
" The time arrived when the reserves of the bank were
no longer able to meet these constant drains upon it. Ac-
ceptances were then given and other heavy and particular
liabilities incurred for the purpose of providing the re-
quired funds. These last acts appeared to have led to the
most distressing feature in this cum. Almost the whole
of the property -of the bank had been pledged, and the pri-
vate estate of Mr. Strahan was resorted to for the same
purpose. The large sums so raised had disappeared,
and there was no alternative but the payment of the
acceptances and other liabilities as they fell due on the
bank. In the vain hope that the anticipated funds would
be forthcoming in time to avert the impending ruin, re-
course was had to those means of raising funds the con-
sequences of which aro now being visited on the bankrupts.
The nature and extent of the securities held by the as-
signees in respect of the debt due by the Messrs. Gamlen,
are detailed iu the balance-sheet.

The present deficiencies of the bank are as follows :
Liabilities
Estimated assets .

Deficiency
" It will be seen by referring to the items comprised
in this deficiency, as set forth in the balance-sheet, that
the sums involved in the transactions with Messrs. Gan-
dell and Lord Mostyn amount to upwards of 843,0001. of
the whole amount.

expenditure, 17,401/. 14s. 31 Sir J. D. Paul, ditto,
772,123/. W Strahan. for separate property held by cre-
ditors of bank, 70,4571. Amount required to cover
tho claim, '32,673/. 4s. Total, 731,745/. 7s. 3d. Cr,-
By debtors Strahau and Co., considered good, 7+b,5361.141. ;
HaHord. and 2,484/. 2.. Bd. ; doubtful and bad,
23,298/. 18s. 3d. ; Co.,Aitto Gandyll and Co. 289,332/. 3s. 5•1. ;
lasi purchase money of Capcstang Lake, 20,000/. ;. total,
269,382/. 3s. sd. ; ditto, Lord Mostyn, 131,9401. 17s. Id. ;
deduct proportion of debt mortgaged, 41,967/. 3s. 41,
leaving 89,979/. 13s. 91 ; property, unencumbered, viz.
shares, 4,8331. 15s. ; life policies, 12,315/. 13s. ; freehold
and leasehold, 2,500/ ; Exchequer Bills, 3)0/. ; total,
19,449/. Bs. Copestang Lake not carried out, the
expenditure required to complete the drainage
and other incidental circumstances rendering the value of
this property uncertain, 20,00 I ; c es's in hand, 11th June,
1,767/. 2s. 5d.; bills receivable, 9,949/. 3s. Gd. • cash at
the Bank of England, 8 1. Bs.-making 11:799/. 3e.
11d. • deduct creditors paid in full (per contra),
3,5991. 2e. Id. - leaving 8,200/. 11s. 10d. Debtors,
the securities representing which aro held by
creditors, 69,343/. 13s. 101 ; property of bank hell by
ditto, 9r;,996/. 16s. Od.; ditto for W. Strahan, hold by joint
creditors? 70,45;1.; amount required to cover these claims,
32,6:3/. 4s. 04. ; making 191,013/. 13s. 101 Deduct
amount held by creditors, partly covered, 12,680/.; leaving
ditto held ditto, fully covered, 18',333/. 13s. 104.; deduct
amount of claims of creditors, fully covered, 184,889/.
12s. 11d. ; balance available for estate, 1,440/. Os. 11d.
Considered as a good asset in respect of one security to the
extent ofl,oool.,the residue is not carried out, being subject
to deduction for interest accruing due on creditors' claims.
Total amount of assets considered good 127,670/. 161. 7d.
By securities pledged belonging to customers of Bank,
94,9111, 7s. ; do. Jialford and Co., 12,8021. 175.,
making, 107,7141. 4s. Bd. ; deduct amount so borrowed,
100,1091. 17s. 44., less value of Exchequer Bills belonging to
Bank, including 2,8191. 125., leaving 97,2901. ss. 4d. This
balance is not carried out as an asset, being subject to the
question as to the'r4ht of the assignees, and of the parties
to whom the securities belonged. Deficiency 31st De-
cember, 1851, 71,990/. 7s. 21 ; accounts not car-
ried out in front sheet, namely, doubtful and bad
debts, 20,293/. 18s. 3d. ; Gam len and Co. ditto,
269,382/. 3s. 5d ; Lord Mostyn, balance, 89,9731. 131,- 9d. ;
Copestang Lake, 20,0001 ; surplus value of property
held by creditors as security, 1,4441 N. 11d. considered
as good assets for only 1,0001.-leaving 44i/. Os. 11d. ;
surplus value of customer,: securities pledged 10,423& 19e.
4d. R. M. Bfttes, salary, 3,7501. ; balance to his debit
4,3811. 7s. 10d. Sir J. D. Paul (deceased) -Proportion
of profit credited him in 1852. written back, 4,5601.,
and liabilities per contra, 103,870/. ; total, 731,745/. 7s.
3d."

The last examination of the bankrupts was accordingly
adjourned until March 11, 1856, but another meeting
will shortly be announced for the declaration of the divi-
dend.

IMPERIAL P.

'—(This Day.)

HOUSE OF LORDS.

This afternoon, shortly after two o'clock, Parliament
was further prorogued by Royal commission till Thurs-
day, the 31st of January.
The Lord Chancellor and the other Commissioners
having taken their seats at the foot of the Throne, the
Usher of the Black Rod was directed to summon the
Commons to hear the Commission read.

Shortly afterwards the Clerks, attended by the door-
keeper and some other officials of the house, appeared at
the bar, when the Commission was real by the Clerk at
the table.

The Royal Commission commanded the Lords spiritual
and temporal, and the knights, citizens, and burgesses,
and the commissioners for shires and boroughs, of the
House of Commons, to give their attendance at West-
minster, on the 31st day of January next, for the de-
spatch of divers urgent and important affairs.
The proceedings occupied but a few minutes, and,
save the parties taking part in the ceremony, few per-
sons were present.

Naval and Military Intelligence.

Capt. H. E. Yelverton, of the Arrogant steam-
frigate, has been offered, and has accepted, the command
of a divisional fleet of gun-boats, 40 in number, for ser-
vice in the Baltic next year. The Arrogant will go into
dock at Portsmouth to-morrow, to have her defect exa-
mined and repaired. Her eternpost will, it is expected,
be removed, and a new one put in. She also requires
new decks.

Admiral of the Blue Ricbd. Thomas, we are informed,
has received the service pension which fell in on the de-
mice of the late Admiral Carthew, and will be in conse-
quence removed to the Reserved List, thereby promot-
ing Vice-Admiral of the Red Sir Thomas Cochrane,
K.C.8., Commander-in Chief at Portsmouth, to be Ad-
miral of the Blue • Vice-Admiral of the White Charles
Sibthorpe John lavvtayne, to Vice Admiral of the Red;
Vice-Admiral of the Slue Henry Prescott, C.B.' to be
Vice-Admiral of the White; Rear-Admiral of the Red'
Alexander Renton Sharpe C. 8., to be Vice-Admiral
of the Blue ; Rear Admiral of the White Wm. Walpole,
to be Rear-Admiral of the Red ; Rear-Admiral of the
Blue Sir Michael Seymour, K.C.8., to be Rear-Admiral
of the White • Capt. Charles Graham (1830), C.B , Aide
de-Camp to the Queen, to Le Rear-Admiral of the Blue.
The crew of the Royal George, 102 guns, Capt. Henry
J. Codrington, C.B ; are engaged sending guns, carri-
ages, and all her heavy stores away in lighters, to lighten
her ready for her being taken into dry dock at Sheer-
ness. Her engines and boilers are in good order, not even
a screw having given way during the time she has been
from England. Her average speed has been rated at 9i
knots, with 58 revolution‘ and 151 b. pressure of steam
on the square inch. Mr. Henry D. Grant, late mate of
the Royal George promoted to Lieutenant, received his
discharge from that ship on her arrival at Sheerness,
and has left her.

The Firefly, 4 gun., paddle-wheel steam-vessel, Capt.
Henry C. Otter, arrived at Sheerness at 8 a.m., yester-
day, from the Baltic. She left Kiel on the evening of
Wednesday, the sth inet., proceeded as far as Ven-
geance Shoal, and there anchored for the night, and
waited next day for the Admiral and fleet passing, which
had left on the 6th inst., at 8 a.m. The fleet consistel
of the Dnke of Wellington, 131, bearing the flit; of Rear-
Adrei,al the Hon. R S. Dundas, C. 8., Captain of the
Fleet Commodore the lion. Frederick T. Pelham, C. 8.,
in command ; the James Watt, 91 guns, screw steam-
ship, Cept. G3O. Elliot ; the Orion, 91 guns, screw
steam-ship, Capt. Jan E. Erskine ; and Majestic, 80
guns, screw steam ship, Capt. Jas. Hope, C.B. ; also
the French Admiral's ship Tourville and the French
line-of-battle ship Duquesne. At 3 30 p.m. the same
day these ships all passed Vengeance Shoal. At 4 p.m.
the Firefly got under way, and proceeded after the fleet.
The whole fleet, except the Firefly, passed through the
Gr..at Belt and the Cettegat at midnight, although ex•
tremely dark. The Firefly parted company at midnight,
going through the Lasso Channel, thereby saving a dis-
tance of 30 miles, the fleet going out through the Catte-
gat by the deep water channel. On the forenoon of the
7th the fleet were observed passing the Scaw, it then
blowing a gale of wind from the north-east, with heavy
snowstorms. The Firefly made her passage from the
Scaw to Sheerness in 67 hours. On the morning of the
9th saw n line-of-battle ship distant about 20 miles east
of the Lemon and Owers light-vessel. Commander
Edward Burstal (late Lieutenant of the Firefl)) comes
home in her, he having been promoted for the proceed-
ings of the Firefly near Wasa in August last, the vessel
having been engaged with a number of troops, amount-
ing on the first day of attack to 300, which afterwards
increased to 900, with a battery of artillery. Tho firing,
of the field battery was highly creditable to the Rus-
sian gunners, many of their shells bursting imme-
diately over the ship, and their red-hot shot whizzing
by close under stem and stern. Complete volleys
of Minie rifle balls were fired by the Russian soldiers
with great accuracy, and numbers of them struck the
vessel. All of them were of a very large size.
One of the balls passed through the standard staff,
at a computed distance of 1.500 yards. Such was their
precision of firing that, had it not been for keeping the
vessel sometimes steaming ahead, at other times back-
ing and filing, so as to shift position, nearly all their
shots would have told on the hull and crew, as they in-
variably
passed at short distances, allowing for the ves-
sel shifting her positions: The latter part of the season
the Firefly was engaged in the upper part of the Gulf
of Bothnia, where the Fins were catryilig on an exten-
sive trade with the Russians, which was effectually put
a stop to for the six weeks she was there, during which
time her surveying officers made very valuable additions
to their surveys for the new charts. On leaving Tomes,
the extreme north part of the gulf, on the 14th of Octo-
ber last, the thermometer was down 14 deg. below freez-
ing point, and the ship being in one mass of ice it be-
came difficult to make use of the boats. It is expected
that the Firefly will be taken into dry dock at Sheer-
ness, to ascertain if she has been injured by the burst-
ing of one of the enemy's infernal machines under her,
at which time fore and aft and thwartship bulkheads
were displaced by the explosion, and the vessel consider-
ably shaken. The Fire fly brings hume two Russian
soldiers, who deserted and came on board her when off
Brandon, one bringing his musket with him, which is
of very large bore. One states his name to be Jefine
Drafiuoff : the other Hallo Somenoff. They earnestly
solicited to be allowed to join her in any capacity, and
are doing duty at present as ordinary seamen.
The Cressy, 80 guns, screw steam-ship, Captain
Richard L. Warren, was put out of the fitting basin,
Sheerness, yesterday, and moored at harbour moorings.
The Thistle gunboat was also put out of the basin, hav-
ing had her defects repaired.
A new steionedomp, named the Victoria, arrived at
Southampton on Saturday from Limehouse. This vessel,
which is commanded by Captain Norman, late of the
General Screw Steam-Shipping Company, has been built
at the sole expense of the Colonial Government of Aus-
tralia, under the sanction of the Secretary of State for
the Colonies. The duties for which this vessel is in-
tended will chiefly lie in the inspection of Government
coastworks. She is also fitted with accommodations
suitable for the occupation of the governor, and can be
treed by hitu as his State yacht. The Victoria is a hand-
some vessel, constructed of mahogany on the diagonal
principle, by Messrs. Young, Son, and Maguey, of
Limehouse, upon designs furnished by Mr. 0. Laing,
Master Shipwright of Pembroke Dockyard. She is of
580 tons burden, 'with direct acting trunk engines by the
Messrs. Rennie, of 150 nominal horse power. The Vic-
toria has been fitted and armed as a sloop of war, under
the immediate superintendence of Commander Leckey,
R.N. Her dimensions are 172 feet over all, with 27
feet beam, and she is propelled by Moresby's improved
feathering screw. The Victoria left London on 'Wed-
nesday, but on account of heavy weather and strong
N.W. winds was obliged to put into Dover Roads. The
weather having moderated she left on Friday, ar.d ar-
rived at Southampton on Saturday morning. Upon
passing the measured mile her speed was tried, when
she accomplished 131 knots per hour, with 84 revolu-
tions of the engines, and tin indicated horse-power of
670. During the other portions of the voyage the ave-
rage of speed, with from 60 to 65 revolations, was from
eight to nine knots. Mr. Scott, of the firm of Rennie
and Co., in superintendence of the engines, Mr. Braith-
waite, Government Inspector, and Commander Lockoy,
R.N , accompanied the vessel to Southampton, where
she has called for the purpose of taking in live stock for
tale voyage. The Victoria is very heavily rigged, and it
is intended to make the voyage to Australia solely under
canvass. There are two broadside guns and one long
32-pounder, on a traversing carriage, on board.
The sailing transport Sir George Pollock, with troops
for the West Indies, and the Castle Eden, with convicts
for Bermuda, sailed from Plymouth on Sunday. The
American merchant ship Golden Gate, Capt. Dewing,
' from Marseilles, Nov. 16, for New York, which sprang
a leak in the Mediterranean, and split all her sails in the
Atlantic, put into the Sound on Sunday, with eight feet
of water in her hold.

Her Majesty's ship Alban, Lieut. Fisher, arrived at
Cuxhaven last Wednesday afternoon, having been obliged
to run for shelter from Heligoland, where she made an
unsuccessful attempt to land recruits on the 4th inst.,
and, owing to a sudden shift of wind during the gale,
was for some time in imminent danger of being lost. On
the 3d inst. the Alban and her consort, the Pigmy, were
frozen in eight milss above Gluckstadt, and with some
difficulty extricated themselves from the ice, which in a,
few hours had assumed a firmness dangerous to any but
iron vessels.
In the list of naval appointments given in the Times of
Saturday Paymaster Allen was mentioned as having
hien appointed to the Leveret. The ship to which he
has been appointed is the Transit.
Lieut.-Colonel Chas. Pelham Beauchamp Walker, from
the 7th Dragoo❑ Guards, is about to exchange from the
unattached half-pay, with Col. the Hon. Cecil Forrester,
of the Royal Horse Guards Blue.
It is stated that army agencies are to be abolished and
their business transferred to the War Department. The
saving to the Government will be very great.
The first transmission of warm clothing from the Cri-
mean Fund arrived on Saturday at, Brompton, Kent, to
be disposed of by Second-Olass Surgeons Robert Bat-
teraby and Henry C. Reade, and Staff Captain T. A.
Rawlins, who form the committee for such distribution
to the wounded.
A few invalids arrived yesterday at _Chatham front
Balaklava, in charge of Staff Assistant-Surgeon Herbert
C. Miles, from the ship Calcutta.
The standard far recruits for the Royal Marine's Light
Infantry has been raised to 5 feet 6 inches for growing
lads from 18 to 20 years of age, and 5 feet 51 iuches for
grown men.
Second-class Staff-Surgeon George M'Cullock, sth
Dragoons, is ordered to preceed to New Tavern Fort,
Gravesend, to relieve Staff-Surgeon Jonas K. Carr,
M.D., in medical charge of troops at that station.
Capt. J. Stawell, temporary barrack master, Chatham,
has been appointed to Devonport, vice Capt. J. Buckley.
A notifica'ion has been made to the colonels of the
household regiments of cavalry, that officers, half of each
rank, who are entitled to furlough at this time of the
year, may volunteer, if they wish to see foreign service, as
supernumeraries te the different cavalry corps at Scu-
tari.