The Sun.
London, England, 1865-03-28 00:00:00

The Bank Failure in Birmingham.

Yesterday afternoon afirst sitting of theßirming-
ham Court of Bankruptcy was held in the matter of
Henry Marshall, only surviving partner in the firm
of Attwoods, Spooner, Marshalls, and Co., for the
choice of assignees. Mr. Registrar Hill, to whose
court the petition was attached, had consented to
hear the case at the Town-hall, so as to accommo-
date the very numerous body of creditors who were
anxious to be present. Mr. J. W. Who-Wu. and
Mr.W. S. Allen appeared as solicitors to the petition,
and also on behalf of creditors numbering 2,586,
whoseclaims amounted in the aggregate to £545,040
7s. 6d., or twice the amount which, it may be re-
membered, was-proved at the first meeting of credi-
tors in the notorious Royal British Bank.
Mr. Griffin (firm of James and Griffin, solicitors)
appeared on behalf of Mr. J. Suckling and about 700
other creditors, and Messrs. Powell, Hawkes, and
other professional advisers attended for various
creditors.

Mr. Allen, addressing the registrar, said that the
creditors had already declared at a public meeting,
in a most unmistakable manner, their desire to take
the administration out of bankruptcy. It was, how-
ever, thought necessary that assignees should be
appointed, in order that there might be some persons
authorised to give a title to the estates belonging to
the late bank, which it would be their first duty to
sell and dispose of, on behalf of the general body
of creditors, either in one or several parcels, as
might be deemed most advisable ; and, if the
gentlemen whom he should nominate were ap-
pointed by his honour that day, he was instructed to
say that they would have the assistance of the com-
mittee of creditors appointed at a meeting held on
the 16th inst., who would thus form a connecting
link between the assignees and the great body of
creditors. That committee, for whom he and his
friend appeared, had brought down from London a
learned counsel of great eminence in bankruptcy
yractice, Mr. De Gex, who was present as a kind of
quasi assessor, and he (Mr. Allen) should have the
benefit of his assistance in case any question of
doubt or of difficulty arose. He then nominated as
assignees Mr. Geo. Turner, of Birmingham, linen-
draper ; Mr. William Henry Dixon, of Birmingham,
coal merchant ; Mr. John Gough, of Birmingham,
licensed victualler ; and Mr. Peter D. Bennett, of
West Bromwich, iron founder.

Mx. Griffin, on the other side, contended that as
representing the interests of Mr. Suckling and
some 700 other creditors in the choice of assignees,
he was at least entitled to a voice. Questions of
very great importance, he said, would arise in the
course of these proceedings, and although his object,
and the object of those he represented, was mainly
to assist in taking the proceedings out of bank-
ruptcy, he thought they ought to be allowed to
nominate a fair proportion of the assignees. Up to
the present time the proceedings had been conducted
by the solicitors to the bankrupt, Mr. Whateley and
Mr. Allen. The former gentleman had long been
the private solicitor to the bankrupt, and the Messrs.
Whateley had represented Messrs. Spooner and Co.
from time immemorial as their legal advisers. Those
gentlemen not only appeared on behalf of Mr. Mar-
shall, the bankrupt, but for creditors' assignees.
There was a very wholesome rule in bankruptcy,
which had been laid down again and again by the
commissioner in that court, that the solicitor to the
bankrupt ought not, and could not, represent the
assignees, therefore the two positions were quite
incompatible. The creditors whom he (Mr. Griffin)
represented desired that the name of one gentleman
proposed as assignee, who was largely interested in
another bank, should be withdrawn, and another
nominated ; and further, that the assignees should
be represented by a distinct solicitor.
Mr. Allen, in reply, urged that the creditors'
committee represented the entire body of creditors,
and had their full confidence. As regards Mr.
Marshall, he said that gentleman would be repre-
sented by an eminent solicitor wholly unconnected
with the town and with Mr. Marshall, and who, he
believed, at the present moment knew nothing
whatever of the estate.

Proofs of debts and powers of attorney were.

after some further discussion, handed in by Mr.
Allen amounting to £50,000, and by Mr. Griffin
representing 13 creditors to the amount of £20,000,
it being mutually agreed not to burden the estate
in the present stage of the proceedings with the
expense of more proofs than :was absolutely
necessary.

The meeting then resolved itself into a meeting o:
creditors under the 110th section of the act.

Mr. Allen said it was first necessary that the estate
should go into bankruptcy, in- order that it might
not be diminished or frittered away by what would
otherwise have been a general scramble among the
creditors. That object having been answered, on
the advice of the committee, the assignes, and the
high legal authority of Mr. De Gex and Mr. Bacon,
it was thought the estate should now be taken out
of bankruptcy and wound up by private arrange-
ment. Mr. Allen concluded by proposing a formal
resolution to this effect, which was supported by Mr.
Griffin, and carried.
Mr. Laundy, accountant, was appointed mana-
ger, after strong opposition by Mr. Griffin, Mr.
Powell, Mr. Hawkes, and others ; but on the
suggestion of Mr. Allen Mr. Laundy gave a verbal
assurance that, as regards his costs as manager,
they should be subject to taxation by the registrar of
the court, in the same manner as if the case were
still in bankruptcy.
The sitting wasithen adjourned for a fortnight, to
allow time for notice of the resolutions to be given
to every creditor, as required by the private arrange-
ment clauses of the Bankruptcy Act.