The Sun.
London, England, 1837-10-18 00:00:00

COURT OF BANKRUPTCY, Om 17.

1 MESSRS. WARWICK AND CLAGGETT'S BANKRUPTCY.
A meeting of creditors under the fiat issued against this
large American house—the failure
since occasioned much excitement the merchants
monthserahano
engaged in the trade with the Unoifetem'dvehuicha fe
States—was held
to-day, for the further proof of debts, and the d
a first dividend on the joint and separate estates.
Mr. Sweet, the solicitor, attended on behalf of Messrs.
Jackson and Co., of Philadelphia, to enter claims
the joint estate of the bankrupts for 32,9061., and againstagainst
the separate estate of Mr. Warwick for 10,4061. The
first claim was for bills no;Y in circulation in America, which
were drawn in the usual coursc of trade, and which
r htamight au nd
tn
all be paid. In order to secure the Jacksonfirm of e
Co., he (Mr. Sweet) sought to enter a claim for
due, should any of the bills not be paid.
The GOMMlabiuror,.
creditors, to fix the dividend meeting as early as possible.
He thought the best course would be to delay the de-
claration of a .dividend on the joint estate till the next
regular meeting, in order that inquiries might be made
into the subject, admitting the claim for the amount stated,
though it was rather irregular. The amount to divide at
present (4,0001.) was too small to be of any consequence.
Mr. Sweet then applied to be allowed to give in a claim
for about 10,0001. against the separate estate of Mr. War-
wick, on behalf of Mr. Hougan, of Liverpool and New
Orleans, on a transaction arising out of these circumstances.
On the 21st of September, 1836, Mr. Hougan while in
London disposed with Mr. Warwick, who was then sepa-
rately carrying on business, 50,000 dollars, in shares of the
Virginian State Five per Cents., upon condition that a
credit was opened in his favour to the amount of 10,0001.
The credit was used and bills drawn, which were circulated,
but Messrs. Hougan had to provide for the bills, and on
applying for the shares they bad been employed by the
bankrupt and sold by those who had made advances upon
them at a loss of 20 per cent. The application, there-
fore, was to enter a claim for the amount for which the
shares were sold.
Mr. Freshfield, the solicitor to the estate, opposed the
claim as the bills drawn against the credit were accepted
by the firm of Warwick and Claggett. There had not
been time yet to investigate the accounts, to ascertain whe-
ther the claim ought not to be against the joint estate.
Mr. Sweet said the letter of credit was given by Mr. War-
wick, and previOisly to the commencement of the partner-
ship with Mr. Claggt;tt.
The claim was oppose) on behalf of certain principal
creditors who have proved against the joint estate.
The COMMISSIONER considered it would be better at a
private meeting to discuss these objections. He should,
therefore propose that a dividend of 2s. Gd. in the pound
should be declared on the separate estate, and that the joint
dividend should be postponed. •
Mr. Whitmore, the official assignee, said a dividend of
2s. Gd. in the pound could be declared on the joint estate,
as he had now nearly 9,0001. in cash and good bills. The
amount on hand on the joint estate was about 4,0001. The
claims and proofs against the joint estate might be 150,0001.
but the concerns -of the firm were so intricate that it was
not possible to state yet with accuracy the amount of the
assets. On the separate estate the claims were 30,0001.,
but should they even reach 70,000/. or 80,000/., by the es-
tablishment of the claim offered that day and others, still
the dividend of 2s. 6d. in the pound could be paid.
The amount of proofs to-day was considerable.
A private meeting was fixed to be held on Monday, to
discuss the questions relative to the claim just referred to,
and to declare the dividend upon the separate estate of Mr.
Warwick, upon which, as well as upon that of Mr. Clagget,
payment in full, or nearly so, is anticipated.