The Sun.
London, England, 1856-09-26 00:00:00

LAW INTELLIGENCE—Sept. 25.

COURT OF BANKRUPTCY.
(Before Mr. Commissioner Holroyd.)
THE HEMEL HEMPSTEAD AND WATFORD BANK. - -
This was the first meeting. under the bankruptcy of
Sic
William Smith, banker, of Hemel Hempstead, and of
Watford, The adjudication was made on the 26th
August, on the petition of Mr. Charles Wilkinson, coal
merchant, of Watford, who claims from the bankrupt a
debt of 611. 9s, 9d., the balance due on his banking ac 50
-
count. The bankrupt is described on the proceedings as L6l
" William Smith, of Hemel Hempstead and of Watford,
both in the county of Hertford, banker, trading under '1
the style or firm of 'Smith and Whittingstall,' and for- 271
merly carrying on the same business in partnership with .1.2
Edmund Fearnley Whittingstall, since deceased." The 25
act of bankruptcy was the closing of the doors of the cb
bark both at Hemel Hempstead and Watford. The
bankrupt is also a solicitor. He had been in partnership dt.
with Mr. Whittingstall from 1839 up to the ,death of A.
Mr. Whittingstall, in March last. The bankrupt admits 53
that be then knew that the bank was not solvent, and 5-41
says that he should have stopped earlier but for negotia-
tions which were going on with the executors of Mr. l(:))
Whittingstall, and with other banks, including the Bucks 10
and Oxon Bank. 50
Toe liabilities of the bank are estimated at between 15
60,0001. and 70,0001. Mr. Smith's assets will probably st,
be about 10,0001. ; but the question is to be raised ?0
whether the solvent estate of the deceased partner can- St.
not be made answerable for the liabilities of the firm up .3ts
to the death of Mr. Whittingstall. 26
Proofs were taken to the amount of nearly 20,000/. ; 25
and the following creditors were appointed trade as.ig- '".
nees :—Mr. Shadrach Godwin, farmer, of Hemel Hemp-
-10
stead, and Mr. C. W. Moore, gentleman, of Watford. St.
The allowance to the bankrupt was fixed at 71. 10s. In
per week. St.
Mr. Bagley said he appeared on behalf of the trustees so
of the deceased partner; and as assignees had now been 10
chosen, he had to apply that separate accounts should 3t.
be kept of the partnership debts and assets, and of those st.
of the bankrupt. St.
Mr. Linklater, on behalf of the assignees, said that 81.
there could be no objection to that. A separate account it.
should be kept of everything having reference to the
firm of Smith and Whittingstall. A. question would e
arise as to the liability of the estate of the deceased 50
partner, or rather as to that of the executors. The ail
will of Mr. Whittingstall merely authorised 164
the executors to raise sufficient money for the St.
purpose of discharging the liabilities of the 3
bank ; but the creditors contended that the executors 23
of Mr. Whittingstall had so interfered in the con tlt
-
duct and management of the bank, that they had either
rendered themselves personally responsible, or bad made 20
the estate of Whittingstall still liable. Of course that 10
was a question of considerable nicety. At the death of iv
Mr. Whittingstall, a very large sure was owing by the St.
bank ;it was then clearly in a state of insolvency, but 25
the business was continued just as though Mr. Whit- 25
tingstall bad not died. Notes continued to be issued St.
bearing his signature, and the executors interfered with 8/2F
the managemeut of the bank. 10
His Honour observed that Smith had stated on a pri-
10
vate examination that the executors did not interfere in St.
the general management of the bank, but only for the it.
purpose of guaranteeing the payment of such loans as 50
were necessary to wind it up. 15
Mr. Linklater said they advanced money with refer- 100
ence to the affairs of the bank. He did not mean that 2f
they interfered with Mr. Smith's management of the '0
bank, but they were there from day to day, and knew tO
precisely what was done. What effect that would have
upon the executors would probably be a question to be
considered elsewhere. There were several creditors who
were creditors of the bank at the time of the death of
Mr. Whittingstall ; and as the bank affairs were carried
on just the same as during his lifetime, their accounts
were continued ; payments were made into the bank as
usual ; in some instances the balance was increased, in
some it was diminished ; and the question might arise
whether, Mr. Vithittiegetall having died, the creditors
had any right to resort to his estate for the balances then
due, or whether the moneys paid out subseq'iently to
his death were to be applied in discharge of the amounts
then owing. Under these circumstances it would be
fair that the proofs of the creditors should be admitted
without prejudice to their claims against the estate of
Whittingstall. It would be difficult in some cases to
determine whether certain notes had been issued in the

lifetime of Mr. Whittingstall, or since his death. They
all bore date in his lifetime, many of them bore his sig-
nature, and the creditors were, of course, unable to say
whether they were issued after his decease or before. If
his Honour would permit that course to be adopted it
would clear the way for a great many creditors who
were desirous of proving.
The Commissioner—l do not see that their proving
against this estate will at all interfere with any remedy
which they may have against the estate of Mr. Whit-
tingstall. At all events there is no harm in saying that
their proofs here are without prejudice. There is the
Celebrated case of "Devine v. Noble," which has settled
that point.

Mr. Murray (who appeared for Messrs. Currie, the
bankers) said the only objection to their proving was,
that if they got a dividend of 103. out of this estate they
would only be entitled to other 1411'1. from the estate of
Whittingstall ; whereas if they did not prove here, but
went against the estate of Whittingstall in the first in-
stance, they would get 20s. out of that estate, and Mr.
Smith's estate would be relieved to the extent of these
claims.
The Commissioner—That will be for their own con-
sideration.

Mr. Murray—l don't see how their c3ming her!: with-
out prejudice can at all help them. I appear for several
creditors of both classes, and I am only anxious that
there should not he any misunderstanding.
The CJinmi.4i,ioner suggested that the examination of
Mr. Smith, taken at a private meeting a few days ago,
should be read for the information of the creditors pre-
sent.

Mr. Linklater read it. The bankrupt stated that there
were executors appointed under Mr. Whatingstall's will,
but he was the sole executor for the bank affsirs. There
was no change outwardly to the world in the manage-
ment of the bank until the 14th of August last, when
the bank suspended payment. He then owed the bank
between 3,0001. and 4,0001. Messrs. Currie and Co.
made two advances of 5,0001. each, to enable him to
carry on the bank, taking security for one in mortgages,
and for the other the guarantee of the executors. The
Bucks and Oxon Bsnk also advanced 8,0001., which was
covered by securities. He had not consulted the other
executors abut those arrangements. They had. not taken
any part in the management of the bank. The notes in
circulation at the date of the stoppage amounted to
12,8751., and at the death of Mr. Whittingstall to 23,070/.
About 10,0001. of these were issued in the lifetime of his
partner ; some of which were signed by him, and some t„ too
by the witness. The executors must have known that too
some of the notes were re-issued after Mr. Whittin;- 120
stall's death, in

Mr. Linklater said that this being so the creditors 20
would now be permitted to prove their debts against this
esta'e, and their doing so would in no way prejudice 22
their claim against the estate of Whittingstall. 106
The Commissioner —You will require an account of too
the spcific assets belonging to the partnership at the 10
time of the death of Wnittingstall —an account of the 20
subsequently acquired effects —and an account of the to
separate effects of Smith. 20
Mr. Linklater—As the bankrupt proposes to employ 200
Mr. Turquand to prepare his accounts, he will doubtless zu
arrange everything in paper form. tro

The ConiiiiissioCier—lt appears to me that the credi• 110'
tors will have to be ranged under the following heads:— 1 0
creditors who never had any dea;iogs with the bank in 1-I'°
Wbittingstall'a lifetime ; creditors in respect of debts
10
owing by the bank at the death of Whittingstall,
upon which there have not been any payments 20
since, or which have been paid in part only by the 20
surviving partner ; creditors in respect of debts owing 5
at the death of Whittingstall, which have been increased 3;
since by payments to or monies received by the surviv- 20
log partner, but on which no payments have been made, !.0
distinguishing the amount due at the death of Whitting-
stall, and the amount of increase since his death ;
0
criditors who ;were such when Whittingstall died, and `3'3
who continued their accounts with the surviving partner, in•
by drawing and making payments as occasion required, tO
so that between the dissolution of the partnership and 20
the bankruptcy of the surviving partner, they had drawn 16
froth the surviving partner various Aims, amounting in 10
some instances to more, in others less', than was due, 2n
but yet remaining creditors by reason of their payments 20
having exceeded their drafts ; creditors who at 'Whit- 20
tingstall's death were debtors to the bank, but who like- 10
wise continued their accounts with the surviving partner I:,
and by their subsequent dealings with him have turned 5
the balance in their favour. 21.)

Mr. Turquand promised thatithe accounts should be
made out on tbe principle indicated, and the further
proceedings in the case were adjourned till the examin-
ation meeting.

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