The Sun.
London, England, 1863-11-27 00:00:00

6101 Viwar:arlaismo.l
reasons best known to himself, tempted his fate by
returnine to this country, he was at once stied by
the " official managers" of the notorious. London
and Eastern Banki❑g Corporation. It xs true teat
he surrendered and clamed the protection of the
Bankruptcy Court, but the right of action belong-
ing to the plaintiffs was not affected by this act,
and, failing to get their demand admitted by that
Court, they reverted to their remedy at Iva:. Nor
did they stop here. Having issued their tiv, tit, they
made an affidavit that they had probable ci ;use for
believing that the defendant was about to quit
England, and got an order directing him toll ad two
sureties in X 50,000 each for his appearance. it
seems he was unable to do, and the consequecice is
that for some time past he has been resulio,g in
Whitecross-street Prison. An applicatio❑ was wade

not long since to a Judge at Chambers to procure
his discharge from custody, but after a careful argu-
ment it was refused with costs. He then applied
to Mr. Cpuurnissioner Goulburn, but here he met

with opposition from the assignees, whot:e expe—
rience of Colonel Waugh made them as unw.'lling
as the plaintiffs to let go their hold of him. How-
ever, that opposition has now been withdrawn, and
the Commissioner has resolved to grant the dis-

charge for which the Colonel petitions, in ,case
no appeal should be lodged within a fortn4The
by the detaining creditor. Until that time this
dangerous gentleman remains in durance, and
must postpone any arrangements which he may
have made for his return to the more genial climate
of Spain. The grounds upon which Mr. Commis-
sioner Goulburn vindicates his judgment are of
very unequal validity. That which he puts first and
foremost is the advantage to the assignees and
creditors of obtaining a fuller disclosure than they
could otherwise expect. "It was obviou,s to every'
person of common sense that neither the act ountants
appointed by the Court (Messrs. Brown and Dubois)
nor the solicitor to the assignees (Mr. Linklater)
could make proper inquiry into the case w.hile the
bankrupt remained in prison." Upon such a point
as this we readily bow to the Commissioner's opi-
nion ; but, obvious as this may be, it •is not less.
obvious that the interests of justice would be still
more seriously defeated by the bankrupt's abscond-
ing, and rendering no accounts at all. It is satia-
factory to know that very voluminous balance-sheets
are in course of preparation, but we have heard
enough of the Eastern Bank tc make us very scep-
tical as to any new figures being introduced on the
side of assets, and enough of Colonel Waugh to
diminish our confidence in the value of his services
as an accountant. The Commissioner tells us that
the primary object of the 112th section of the
Bankruptcy Act passed in 1849, permitting such
releases, was to facilitate a complete discovery of
ihe bankrupt's estate and effects. This may be true,
bat we cannot help observing that this very section
recognises an exception in the case of persons who
are confined " for any debt contracted by fraud or
breech of trust," as well as those who have been
convicted of offences less heinous than those alleged
against Colonel Waugh. Assuming, as sve are
bound to do, that the Commissioner has kept within
the letter and spirit of this exception, we think it
plain that the Legislature did not mean th'e dis-
cretion of the Court to be exercised, if it could be
helped, in favour of bankrupts who deserve n o in-
dulgence. Besides, the section empowers the Court
to insist on its own conditions, one of w high
might reasonably be the production of adequate
bail. We should have the more right to expect
this security to be taken if. as in the present
in-
stance, a vary large sum had been already fixes by ime
judge and approved by another. Oo the other haled,
it is fair to mention, for what it is worth, the state-
ment of the Commissioner as to the nature of i.,he
plaintiffs' claim. It is by no means clear that the
having attempted and failed to substantiate it in
Bankruptcy would be a bar to proceeding by way
of action, bat if it be true that " the debt was
barred by the Statute of Limitations before the arresG
was made," even Colonel Waugh is entitled to the
benefit of that fact. We can hardly doubt that it is
the consciousness of this flaw in their own case that
has deterred the plaintiffs from carrying it any
further for eight months. It is possible that on this
ground, which the Commissioner will not altoev to
be the main one, the substance of his decision may
be confirmed on appeal. With the expressions that
fell from him in deprecation of prejudice age lust
the bankrupt we can have no sympathy. "Ex ces-
sive bail" may, no doubt, be used as an engine of
oppression, and is prohibited by our law ; but it is
difficult to say what bail is excessive when the per-
son arrested is une who hes diverted hundreds of
thousands of pounds from the pockets of others into
his own, and has made off when detection was cer-
tain. Colonel Waugh stands self-condemned.
He
fled this country when it was vital to his character
that he should remain. lie chose disgraceful im-
punity rather than the choice of establiA,hing his
innocence, because he then believed that chance to
be desperate. What his motive for now braving
the latter alternative may be we cannot say; but
until he clears himself every presumption muse be,
and ought to be against him. Should he succeecl in
giving this last proof of his genius, he may revive,
if he pleases,the orilliant entertainments of Campden
House, and dazzle London, like Cagliostro after his
imprisonment in the Bastile. But to undo tbe runt
that he has wrought, and to silence the bitter re-
proaches of those who were induced to trust him,
is past his power, even if his conscience be capable
of suggesting the desire.