The Sun.
London, England, 1858-11-15 00:00:00

THE SUN, LONDON, MONDAY EVENING, NO STEMBER 15, 1858.

vants now hold, the corresponding posts of
wuzeer, quazi, safir, suba, nizam, and dewan,
with salaries of lacs of rupees, will
be , given to the natives of the civil service,
t )gethe with jageers, khilluts, inams, and influ-
ence. Natives, whether Hindoos or Mahommedans,
who fall fighting against the English are sure to go
to heaven, and those killed fighting for the English
will, doubtless, go to hell. Therefore, all the na-
tives in the British service ought to be alive to their
religion and interest, and abjuring their loyalty to
the English, side with the Badshahi Government,
and obtain salaries of 200 or 300 rupees per month
for the present, and be entitled to high posts in
future. If they, for any reason, cannot at present
declare openly against the English, they can heartily
wish ill to their cause, and remain passive specta-
tors of the passing events, without taking any
active share therein. But at the same time they
should indirectly assist the Badshahi Government,
and try their best to drive the English out of the
country.

sepoys and sowars who have for the sake of
their religion joined in the destruction of the English,
and arc at present, on any consideration, in a state
of concealment, either at home or elsewhere, should
present themselves to me without the least delay
or hesitation.

Foot soldiers will be paid at the rate of three
annas, and sowars at 8 or 12 annas per diem for
the present, and afterwards they will be paid
double of what they get in the British service.
Soldiers not in the English service, and taking
part in the war against the English, will receive
their daily subsistence money according to the rates
specified below for the present, and in future the
foot soldiers will be paid at the rate of 8 or 10
rupees, and sowars at the rate of 20 or 30 rupees
per month, and on the permanent establishment of
the Badshahi Government will stand entitled to
the highest posts in the State, to jageers and
present
2 annas
Riflemen . - 2l do.
Swordsmen _ do.

Matchlockmen 2 annas a-day.

iHorsemen, with large horses.... 8- do.
Do. with small do. .... 6 do.
Section IV.—Regarding Artisans.—lt is evident
that the Europeans by the introduction of English
articles into India have thrown the weavers, the
cotton-dressers, the carpenters, the blacksmiths,
and the shoemakers, &c., out of employ, and have
engrossed their occupations, so that every descrip-
tion of native artisan has been reduced to beggary.
But under the Badshahi Government the native
artisans will exclusively be employed in the services
of the Kings, the Rajahs, and the rich, and this
will no doubt insure their prosperity. Therefore
these artisans ought to renounce the English ser-
vice and assist the Majandeens or religious:fanatics
engaged in the war, and thus be entitled both to
secular and eternal happiness.
Section V.—Regarding Pundits, Faquirs, and
other learned Persons.—The Pundits and Faquirs,
being the guardians of the Hindoo and Mahomedan
religions respectively, and the Europeans being the
enemies of both the religions, and, as. at present a
war is raging against the English on account of
religion the Pundits and Faquirs are bound to pre-
sent themselves to me, and take their share in the
holy war, otherwise they will stand condemned
according to the Shurah and the Shasters ; but if
they come they will, when the Badshahi Govern-
ment is well established, receive rent free lands.
Lastly, be it known to all that whoever, out of
the above-named classes, shall, after the circulation
of this Ishtihar, still cling to the British Govern-
ment, all his estates shall be confiscated and his
property plundered, and he himself, with his whole
family, shall be imprisoned, and ultimately put to
death.

Interior of the Azimghur district, the 16th
MOrhun-um, 1275 Hirij, corresponding
i with Bhadobady Tij 1265 Fusly.

THE EUROPEAN SOLDIER.

The good time which is for all men seems
near at hand for the European.soldier. The Go-
vernment stirred partly by a sense of the pecu-
niary value of the soldier, partly, we believe, by
English kindness, has really tried hard to secure
the means of health. The immense addition to our
strength, and the new and personal sense of the
value of European aid, has quickened the inventive-
ness; of the departments. Old rules have. been set
aside, and most of the great evils which in England
have rendered the soldier's life less safe than that of
the most dangerous trades are in this country about
-to be removed. The new barracks; run up rapidly,
and called, we scarcely. know why, temporary
barracks, are on a scale never yet allowed. The
barracks, for instance, at Barrackpore afford accom-
modation as excellent as regards health and com-
fort as the houses of private gentlemen. The blot
in our arrangeinemts, the inattention to the re-
Tilrements of married soldiers has been for the first
time completely removed. Each of the 120 men
allowed by the present regulations to marry will
have a separate room 22 feet by 16, or the size of an
ordinary bedroom. A verandah very broad, and
nearly 500 feet long, affords the children space
either for sleep or exercise, while the minor ar-
rangements so often and so fatally overlooked have
in this instance at least been properly provided.
The punkahs in each room are pulled at the expense
of the State, and allowing always from the noise
inseparable from a barrack, there seems little to
deter a respectable woman from the life of a soldier's
wife:. The difference which such barracks will
make in the • mortality of a regiment can scarcely
be Over-estimated. Three other objects remain,
however, to be accomplished. before the life of the
"soldier becomes as good as that. of the civilian.
The clothing .is still not absolutely - suited to the
climate. Few regiments now wear the stock, but
it is .not yet formally abolished. The 'unlucky pri-
vate who at inspection cannot produce the stock he
is never allowed to wear is fined ls. for a careless-
ness sanctioned by opinion and by habit. Any
colonel who chooses can still compel its use, and
there are officers. still. who believe it essential to a
soldier's carriage. It should be prohibited at once,
and not supplied again. The new uniform for the
summer is"excellent, for though we miss the red
colour, the light gray stuff is perhaps the one of all
others best calculated to resist the heat. But the
winter clothing is still terribly heavy for such a
climate. The coatee just supplied to the men for
the coming season is lined with strong serge, of it-
self as much as men left to themselves would be
inclined to wear... The trousers are made of cloth
so heavy and close, and in fact so good, that they
almost stand alone. The boots are heavy, and the
dress, we are told, with the belt, but without a filled
knapsack Or firelock,. weighs 511 b. In this dress,
if we are not mistaken, the men after the 15th of
Nov. are required 'to march. Imagine an English
pedestrian, sportsman, or even yachtsman putting
three stone nine pounds on him by way of a prelimin-
ary. Such a costume would be embarrassininCanada,
And in India, if it does not injure health, it at all
events diminishes speed. We are aware that new
soldiers like all other men just arrived, are apt to
think warm clothing unnecessary ; but nothing
gives diarrhoea and dysentery so quickly cs insuffi-
cient warmth. But a long flannel shirt would give
all the heat required, and be twice us clean, with-
out embarrassing the freedom of movement. The
absurd weight of the boot should be diminished at
once, and with pretty strong shoes, a' stout flannel
shirt, and his summer uniform, the English soldier
will be at least in a position to do all that it is in
his physique to accomiilish. To, outmarch a native,
however well he may be dressed, is for the Euro-
pean nearly an impossibility. The remaining ob-
ject is to provide occupation. Supposing. the sol-
dier to sleep eight hours' and to be eight more
engiked in parade, barrack duties, and eating, he
,has still eight hours to live through somehow or
other. Soldier's gardens, a great resource, are of
necessity confined to special localities. Reading,
another great resource, is available only to a por-
tion of the men. There is just now too much in-
clination to rely on this exclusively, to forget that
even emong the educated it is not one in two who
really cares for reading. To those who do not
books are merely a wearisome employment. A very
large proportion of every regiment is therefore
composed of men idle, not so much from dislike to
work as from a positive want of the means of
occupation. • Why not give them the means ?
Why. should not all the. work required
by a regiment be done within the regiment,
every man taking up some trade according to his
training or his taste ? We see no necessity for
compulsion and. no object in employing it. Let
every man•be paid for his labour, of course at a
very different rate from that demanded outside, and
there will be no lack of volunteers.. .Boots, caps,
tents, all the carpentry of a regiment, all its iron-
work, and all its form printing might be done
within the regiment itself. Two hours' work a-day
of 1,000 men is worth thousands of rupees a-week,
and even two hours of steady employment takes
away the irksome sense of idleness. It would, too,
take away one of the most prolific sources of dis-
ease.—Friend of _Twill.

[ADVERTISEMENT .—R rtrey' a Horse and Cattle Improv-
ing Food is equally adapted to improve the stamina of ill-
conditioned Horses, Cows, Bullocks, Calves, Sheep, and
Pigs. It causes no extra expense, as it contains far more
and better nourishment than its cost of lid. per feed sup-
plies in corn and hay; hence ensures an actual saving in
the keep. But its principal advantages are a great improve-
ment in the digestive functions, the stamina and general
condition of horses enabling them to perform far more
labour without getting distressed. It imparts new vigour
to sick, debilitated, or old apparently worn-out horses, and
it puts rapidly the finest flesh on cattle generally, and im-
proves the milk in cows, as it enables them to extract the
entire nourishment out of
.everything they feed on. Rarey
and Co., 77, Regent's Quadrant, Piccadilly, London.
Packed in tins of about 90 feeds, lls. ' • in casks of about 460
tee ds.. mss. ; of aboul 1,000 feeds, £5, being about lid. pei

LA IT INTELLIGENCE.—Nov. 13.

COURT OF BANKRUPTCY.
(Before Mr. Commissioner Gourburn.)
THE WEST HAM DISTILLERY.--DAVIDSON AND

GORDON'S BANKRUPTCY.-IMPORTAWT CASE.

Before proceeding with the report, it may be r.s
well to state the position of the affairs of the firm
of Sargant, Gordon, and Co, in which the bank-
rupts were partners. It is necessary to do so, be-
cause reference was made to it in the course of the
proceedings, and in order to lay before our readers
a perfect history of thislvery remarkable case.
It appears from Mr. Evans's " Commercial
Crisis," a reliable book, that Messrs. S argant, Gor-
don, and Co. failed in Nov. 1847. Whe creditors
agreed to a liquidation by inspection. The report
states that a first payment of 2s. 6d. in the pound
has been made, and some further swill dividend is
anticipated. The creditors on open balances were
£2,888 ; bills payable, £74,759 ; less secured in all
or part, £37,560 ; leaving a deficit of £42,000. The
amount likely to be claimed, say 5A2,000 ; liabi-
ties bn bills receivable, £40,327 ; less expected to
be duly paid at maturity, £21;611, of which amount
£6,000 was covered by R. Heringway. Amount of
creditors holding security £90,658 ; less securities,
£83,000 ; leaving a deficit of £7,649. On the credit
side the good debts were £1,976 ; doubtful, £936 :
available surplus of property of parties who have
made advances, £519 ; debts on produce, £999 ;
produce in hand, £953 ; balances estimated to come
from shipments on which advances had been made,
£,5,500; rent to be paid in full, £232.
Suchwas the state of affairs when the firm of Sar-
gant, Gordon, and Co., failed in 1847. Sargant,
Gordon. and Co. were described as colonial
brokers. In the same month of the same year the
in which J. W.
uproar of £lOO,OOO.
hcouulesewoafsJaohpnaistoune,r,Cfoaliele,
danfudr Co„
The bankrupts were colonial brokers, and carried
on business in Mincing-lane and elsewhere. This
was the certificate meeting. The transactions in
which those bankrupts were engaged obtained great
publicity, and were the subject of a criminal prose-
cution at the Old. Bailey, where they were sentenced
to a term of incarceration. Gordon is said to be
connected with a Scotch family of rank. Their
dealings were a good deal mixed up with those of
Joseph W. Cole, who was convicted at the Central
Criminal Court of forgery of dock warrants, and he
too was sentenced to a long term of imprisonment.
Those alleged dock warrant frauds excited deep
interest in the mercantile community.
Mr. Linklater appeared for the assignees, Mr.
Roxburgh for Daniel M. Davidson, and Mr. Lewis
for Cosme IV. Gordon.

The following is a copy of the excellent report
of the balance-sheet and accounts, prepared by Mr.
Hart, acting for Mr. Nicholson, official assignee.
The petition bears date June 20, 1854, and 19th
August,
1854, was originally fixed for the last exa-
mination, upon which day the bankrupts did not
surrender. Both bankrupts surrendered on the 16th
Dec, 1857, and 10th March, 1858, was appointed
for their last examination. On the 10th March the
last examination was adjourned until "June 2. The
accounts not being then filed, the meeting was ad-
journed to July 7. The balance-sheet commences
the Ist Jan., 1853, with a surplus of £52,520. It
embraces a period of one year and six months, and
shows the following figures
Creditors _

Creditors holding security /231,329 5 7
Less value of security.... 120,425 18 1

110,003 7 6
Liabilities

£221,800 16 9

To meet which the assets are returned.—
Debts contracted, good £ 378 6 0 '
Ditto, doubtful
Property
Amount standing to the debit
of the West Ham Distillery,
being cost thereof. ..... ..206i189 1 10
____----£214,517 1 6

Leaving a deficiency of • 7,283 15 3
To wilich must be added-.

Surplus in January, 1853
Profits on trading
Ditto, West Ham distillery

108,794 3 1

Which is disposed of as follows :
Sundry expenses in trade .. £3,871 7 9
At distillery
Losses
Bad debts 11,371 13 9

Amount drawn out by
Davidson , 1,104 16 2
Ditto by Gordon 2,660 13 1
Liabilities per contra 74,874 7 2
Difference in balance l9B 2 3

£108,794 3 1
The bankrupts state that they commenced business
in 1841, in partnership with Thos. Sargant, under
the firm of Sargant, Gordon. and Co. The capital
of the firm was £7,500 ; each of the bankrupts had
about £3,000. Subsequently this capital was
largely increased by additional money brought in
by Davidson and Gordon. This partnership con-
tinued until 1849. About 1847 the firm of Sargant,
Gordon, and Co. stopped payment, and composi-
tions were paid to the various creditors, varying
from 10s. 6d. to 12s. in the pound. The liabilities
were then about £60,000. In 1849 Davidson and
Gordon commenced by themselves,. and by a state-
ment entered in their books they appear to have
had a capital of £5,300. By an account taken in
Dec., 1850, this capital appears to have been in-
creased to £8,750. No other statement of capital
for any period subsequent to 1850 appears to have
been made. Messrs. Davidson and Gordon had
large transactions with Mr. Webb. These transac-
tions commenced about the end of 1848. Webb
was introduced to them by Mr. Tindall, who gave
them a guarantee to the extent of £3,000. David-
son and Gordon purchased for Webb molasses and
sugar, and they also advanced him cash from time
to time to pay duty. The transactions in
1849. were about
1850 ~
1851 „
1852 ~
1853 ~
About July, 1851, finding that Webb's account was
so heavy, and that he was entering into other
matters, Davidson and Gordon obtained security
for their debt by taking a mortgage upon the dis-
tillery at West Ham. In July, 1853, Davidson,
and Gordon took possession of the distillery under
the mortgage, at this time Webb owing them about
£184,000. Davidson and Gordon were then liable
on Webb's bills to the amount of about £38,000,
and subsequently they advanced money to Webb's
creditors in the shape of a composition upon his
debts. Upon closing the account with Webb the
debit against him amounted to £209,000, which is
taken as the cost of the distillery. The surplus
with which the accounts .commence arises from a
statement showing that in Jan., 1853, the bankrupts
had assets consisting of debts and property amount-
ing to the sum of £325,121, against which the lia-
bilities were £272,601, leaving a surplus of £52,520.
The figures in this statement are extracted from the
bankrupts' books and accounts. - The liabilities are
returned at the sum of £164,874 7s. 2d., of which
£104,000 were upon bills renewable, the remainder
upon bills in connection with Cole Brothers and
Webb. Of these liabilities about £90,000 have run
off, and will not be proved upon the estate, leaving,
therefore, a net liability of about £74,800. The
profits on trading, also the profits upon the West
Ham distillery, are vouched by the bankrupts'
books. The expenses are also vouched. The
drawings are also vouched, with the excep-
tion of two sums of £2OO, which the bankrupts
have charged as drawings, and which in-fact repre-
sent the amount disbursed by the bankrupts be-
tween the time of their leaving this country and
their surrender. The official assignee concludes his
his report. by stating the books given up by the
bankrupts, which it is needless to give, as it is ad-
mitted upon all hands the books had' been well
kept. An analysis of the separate balance-sheets
is also given, but. this it is needless to publish.
Mr. Linklater, on behalf of the assignees, ad-
dressed the Court. It was impossible for the as-
signees to ignore the fact that the bankrupts had
been convicted elsewhere, and had undergone a con-
siderable punishment, having been convicted and
sentenced to two years' imprisonment and hard
labour. It was with a feeling of regret that the
assignees, in discharge of their duties to the credi
tors, the Court, and to the public, had instructed
him to bring under the notice of the Court the facts
of this singular case, He must ask the Court
wholly to refuse rho certificate. Gordon was for-
merly a member of the firm -of Sargant, Gordon,
and Co. That firm made a_ composition with its
crcditrs. Subsequently Gordon and Davidson
entered into partnership, and carried on business
as colonial brokers and metal agents. The balance-
sheet of the bankrupts was of a very startling cha-
racter. It stated that in January, 1853, the bank-
rupts had a surplus or capital of £52,000, but this
capital consisted wholly of figures, and was en-
tirely unreal and unsubstantial. In January, 1853,
they owed to unsecured creditors, £86,859 ; to se-
cured ditto, £185,741 ; the property held by ersdi-
tors was £15,600 ; Messrs. Overend, Gurney, and
Co., were creditors, Jan. 1, 1853, for £151,277, and
held against it property about £15,000. ,The debts
were said to amount to £305,600, of which sum due
to the bankrupts no less than £235,000 was said to
be due to them by a person named Webb, who car-
ried on the 'West Ham distillery ; £50,000 was due
to them by Joseph Windle Cole, so that £285,000
was owing to them by Webb and Cole. Advances
to a very large amount were made by the bank-
rupts to Webb, and it would be a question whether
the bankrupts when they made those advances
could haxe any reasonable prospect of their repay-

went. The alleged surplus of £52,000 consisted for
the most part of Cole and Webb's debts, which the
bankrupts must have known was hoplGssly lost.
The bankrupts, the Court would observe, had com-
menced business with only a few thousand pounds
capital, but had in a few years inereased their
dealings to the amount of from £500,000 to
£1,000,000 annually. During this time their
bill dealing and bill discounting were enormous.
In October, 1853, the bankrupts , discovered that
some spelter warrants, handed to them by Cole, re-
presenting property to the amount of many thou-
sands, and deposited with Messrs. Gurney, Overend,
and Co., were fictitious; that • there was no
spelter to represent these warrants; that the spelter
had been removed by. Cole ; and under suck circum-
stances it was manifestly impossible they could
hope to receive one shilling of the debt due to them
by Cole. In August, 1853, it was also obvious to
them that Webb was utterly insolvent. When
Webb stopped, the bankrupts became guarantee for
the payment of 2s. 6d. in the pound, taking the dis-
tillery into their own hands. In October, 1853, the
bankrupts must have been aware that the warrants
were fictitious, and they had, or .at least Gordon
had, an interview with Chapman. Cole had'con-
fessed to Chapman that the warrants were fictitious.
Overend and Gurney had received a promissory
note of the bankrupts for £l2o,ooo—a note drawn
by the bankrupts in favour of " Cole, Brothers,"
and endorsed to Messrs. Overend. The day after
the interview between Gordon and Chapman (one
of the members of Messrs. Overend and Co.'s firm)
the title deeds of the distillery were deposited with
the latter, and they were not obtained from the
hands of their solicitor until after the bankruptcy.
The interview between Gordon and Chapman was,
at Chapman's request, kept concealed.
Commissioner—Concealed ?
Mr. Linklater—Yes ; and here he must state, with
whatever reluctance; that, although Messrs. Over-
end, Gurney, and Co. knew Messrs. Davidson and
Gordon were guilty parties, they, nevertheless, per-
mitted Messrs. Davidson and Gordon and J. W.
Cole to go on, with what object might be best
judged from the fact that in January, 1853, the
debt due by the bankrupts to Overend and Co. was
£150,000, whilst at the time of their failure it had
been reduced to £llO,OOO, thus Messrs. Overend
clearing themselves to the extent of £40,000 ; and
it should be also borne in mind that a considerable
portion of Messrs. Overend's debt was repre-
sented by interest with which they charged
Messrs. Davidson and Gordon. The bankrupts
had also given a promissory note to Cole for 120,0001,
which was passed to Messrs. Overend. and Co. as
security. The firm of Overend also held at the time
of the bankruptcy the :title deeds of the distillery.
They (the bankrupts) now owed about £150,000,
for which they had assets, good debts, £378 ; doubt-
ful debts, £5,340 ; in property, £2,600. It was
greatly to be lamented that in Oct., 1853, when
Messrs. Overend discovered Messrs. Davidson and
Gordon's, and Cole's position, they did not at once
put a stop to their career. It was to be regretted
that for any consideration or any pecuniary advan-
tage Messrs. Overend had been induced to continue
their course with the bankrupts. Cole became bank-
rupt ; he was indicted for frauds committed with
the dock warrants, and sentenced to four years' im-
prisonment. Davidson and Gordon went on as long
as they could, and when they could go on no longer
they left the country. They travelled over a great
part of the continent, visiting Ostend, Berne, Malta,
and Naples, and, in fact, they left England when
their embarrassments could no longer be concealed,
and returned when foreign states became too hot to
hold them.
Mr. Roxburgh—My client came voluntarily from
Malta.
Mr. Linklater—You may call it " voluntarily" if
you like, but they were under surveillance, and felt
it abroad. The detective officer returned with them.
Commissioner—Can it be said that bankrupts
who so act have, in the words of the statute, con-
formed to the law of bankruptcy ?
Mr. Linklater—l should think not. When the
bankrupts landed at Southampton they were in cus-
tody at that moment. Mr. Linklater then alluded
to the offences for which they had been -tried ; • but
as these trials have been before the public it is
needless to recapitulate the circumstances. The last
trial—that upon which they were convicted under
5ee.253 of the Bankruptcy Law Consolidation Act,
which is to the effect that if any bankrupt shall
within three months next preceding his bankruptcy,
under the false colour and pretence of carrying on
business and dealing in the ordinary course of trade
obtain on credit from any other person any goods
or chattels with intent to defraud the owner thereof,
or if any bankrupt shall within such time or with
such intent remove, conceal, or dispose of any goods
or chattels so obtained, knowing them to have been
so obtained, every such bankrupt shall be deemed
guilty of a misdemeanour, and on conviction be
liable to imprisonment for any term not exceeding
two years, with or without hard labour. This ex-
treme sentence the bankrupt had undergone, and
this was the main reason the assignees did not wish
then to press more severely on them than their
duty compelled them to do. Since the bankruptcy
he cheerfully admitted that the bankrupts had given
to the assignees, in the realisation of their estate,
all the assistance in their power, and their aid had
been of much use in collecting the assets, though
not at all adequate to the reparation of the grievous
injury which they had inflicted upon their credi-
tors. On behalf of the assignees he felt bound to
ask that the certificates be wholly refused.
After some discussion,
The Commissioner -reminded Mr. Linklater of the
maxim, nenzo bis punitur pro eodenz delicto.
Mr. Linklater replied that this was an overt act
on the part of the bankrupts. They asked the cer-
tificate of the Court to go into trade again ; they
asked the Court to state that they had conformed to
the law of bankruptcy. How could the commis-
sioner do this ? Mr. Linklater referred to the case
of "Ex parte Dobson," 25 L. J. Cases in Bank-
ruptcy. •
The Commissioner admitted, after hearing the
dicta of Lords Justices Knight Bruce and Cran-
worth,•that the authority for Mr. Linklater's view
Was very strong, and added that it was very fortu-
nate for the creditors and the public that the assig-
nees were represented by Mr. Linklater.
Mr. Roxburgh said that in the case of Dobson,
to which Mr. Linklater referred, there had been no
indictment.
Mr. Linklater—l am not aware of any case where
a bankrupt, having been convicted, applied to the
Lords Justic3s for a certificate. There is no such
precedent.
Mr. Roxburgh—Then perhaps we would make a
precedent.
Commissioner—Suppose the case of a pardon
from the Crown. It is laid down that having un-
dergone a punishment it is equivalent to a pardon.
Mr. Linklater—Lln the case of outlawry, upon re-
versal, the civil rights which had been suspended
revive.

After some discussion,
The. Commissioner said this was a case which
ought to be fully, and thoroughly investigated. It
was one of much importance to the commercial
public, and nothing ought to be left undone to elicit
the whole truth. The bankrupts' transactions with
Mr. Chapman, of the firm of 0 verend, Gurney, and
Co., ought to be well sifted, for otherwise it would
be impossible for the Court to arrive at any satis-
factory conclusion relative to the conduct of David-
son and Gordon. He desired, therefore, that Mr.
Chapman be called and examined in this court, so
that he might tell them what he recollected of the
interviews with the bankrupts. I say again, it
highly imports commerce itself that those tzansae
tions be fully explained ; and upon former occasions
I was always of opinion that upoi“his head they
stopped rather- short. I think Mr. Linklater as
representing the assignees, is bound to see to this.
Mr. Linklater—l certainly will:
Mr. Lewis—What the bankrupt Gordon stated
to-day is all fours .with one of Mr. Chapman's state-
ments.

Mr. Linklater—Which of them? I.believethere
are three or four.. It is not consistent with that
made under the hankiuptcy.
Commissioner—l think it is your duty to sununon
Mr. Chapman. .
Mr. Linklater—l will. His position shall not
deter me from treating him as 'an ordinary witness.
COmmissioner—You will of course treat him as
A. B. or C. D.

Cosmo William Gordon examined by Mr. Link-
later=-(The witness did •not seem in the least cast
down. He leaned over on the side of the witness•
box, put up his glass, surveyed the bench and bar
with admirable coolness, and seemed as unconcerned
as any other man in court). .He deposed—l was
formerly in partnership with Sargant, Gordon, and
Co. It failed in 1847. The debts of the firm were
about £60,000. A compromise was made with the
creditors of from 2s. 60. to 10s. or more. I en-
tered into partnership with Davidson in 1818 or
1849. He brought in some capital. I cannot say how
much. He too was in the firm of Sargant and Co.
Our capital was about £3,000, £4,000, or £5,000.
In December, 1849, it was £5,300. Prior to
January, 1853, we had made large advances to Mr.
Webb, who was introduced to us by Mr. Tindal, a
deputy chairman at Lloyds', a Quaker. Noble was
a distiller. We purchased molasses and sugar from
him. In Jan., 1853, Webb was indebted to us
more then £230,000. We held produce to the
amount of £62,000, produce purchased for him, and
not delivered. We drew upon Webb, and discounted
with Messrs. Overend and others. • The report of
the official assignee is correct. We held secu-
rity for the whole of Webb's debt. We held'
beside produce shipments £22,000, and the mort
gage of his distillery for £144,000. A portion of
that sum was for advances to Webb to carry on

the distillery, or for goods delivered. The title-
deeds of the distillery were with us in Jan., 1853.
Webb failed in August or September, 1853. 'I
think he paid a composition of 10s. in the pound.
We paid 2s. 6d. in the pound, and guaranteed 2s.
6d. more for Webb in the pound. Webb then re-
tired from the distillery. We got nothing from
Webb for our own debt. We then took possession
of the distillery, and carried it on on our own ac-
count. The title-deeds of the distillery remained
with us to the latter end of 1853. • A portion of the
deeds was deposited with Mr. Nicholson. We did
not deposit the mortgage or lease at all with Messrs
Overend. We owed Messrs. Overend £151,000 in
Oct., 1853 ; they held warrants as security, and
they held securities for the whole amount of their
debt, with a margin. In Oct., 1853, I had an in-
terview with Mr. Chapman, of the firm of Overend,
Gurney, and Co. I deposited spelter warrants
with Mr. Overend, but do not know there was any
spelter to represent them. I was not so told by
Chapman or Cole. Cole did not say the warrants
were fictitious, nor anything to that effect. Cole
said he had taken the matter upon himself. Cole
said he was not able to get possession of the speller.
Chapman told me that Cole had stopped the goods,
and could not get possession of them. Chapman
asla d. me, that being so, how I should be able to
liquidate their debt? Cole said, as he could not
get the goods, he had taken means to cover himself.
These warrants represented about £60,000. Cole
had stopped the goods to which the warrants referred
I did not inquire whether the spelter was at the
wharf or not. At the interview with Chapman it was
my belief Messrs. Overend would get possession of the
speller. How it was I know not. Cole was not
in October, 1853, indebted to us. He did not give
a promissory note to Messrs. Overend and Co. for
£120,000.. I gave such a note, payable to " Cole
Brothers," on the understanding that it was going
to Overend and Co. I was not then indebted to
Cole for £120,000. I was indebted to Cole, but we
did not agree as to the amount, but it was not so
much as £120,000. As we could not get the war-
rants for £60,000, we were not indebted so much
to Cole. The promissory note was sent to Messrs.
Overend. Our indebtedness to Cole .was not dis-
cussed at the interview with Mr. Chapman. I
went into the particulars of the distillery business
with Chapman. I did not deposit the deeds with
Chapman. I heard Cole had deposited the deeds
of the distillery with Chapman. We transferred
the deeds to Cole to protect the distillery from
Webb's creditors, so that we might be secure.
The consideration for the transfer was the
sum in which Cole said we were in-
debted to him—Xlso,ooo. We did not owe him
that sum. If the warrants held by Overend and Co.
had been delivered we would owe him 60,0001. In
August, 1853, the deeds of the distillery went out
of our possession and into that of Cole. Messr".
Overend sold some of the warrants. I never got
any. Heard some were delivered to buyers. I
know of no-fictitious warrants. At the interview
with Mr. Chapman the details of the distillery were
discussed. The warrants were valueless to Messrs.
Overend by reason of Cole's stoppage. I believe
that all the spelter was at the wharfs through the
whole transaction, and that the warrants were
genuine. The reason alleged by Cole for the non•
delivery of the spelter .was because there was a
dispute between us as to advances. I understood'
Cole to say the spelter would be delivered. The
spelter was always in Cole's name. There was no
transfer; it was a mere deposit of the [warrants.
I do not reeollect it being stated by Cole at
the interview with Chapman that the spelter
had been recovered. I was introduced to Webb
by Mr. Tindal, who guaranteed his transactions
to a certain amount. I dealt with him so exten-
sively in consequence of that introducton. Warrants
were sold to various parties by 'Messrs. Overend, to
the value of 20,0001. At the time I gave Cole the
deeds I believed that all the goods represented by
the warrants were delivered, and I never knew they
were not. I expected that the spelter which the
warrants represented would be delivered. I sup-
posed the spelter was there; that Cole would re-
move any stop that might be upon it. I. did not
know Cole had any difficulty in getting at the
spelter. Cole had formerly stated that he protected
himself to the amount of 60,0001. We might have
given our acceptances for the amount, but I am
sure we did not for the full amount. In October,
1853, we owed Cole 6001. When I gave the pro-
missory note for 120,0001. to Cole I must have con-
sidered I owed him that sum. I did not keep the
books. The cash was entered day by day, exclud-
ing the 60,0001. warrants. Ido not know I owed
Cole anything, Cole had the distillery deeds in
his possession before the interview with Chapman.
The promissory note and deeds were not given
at the same time. I gave Cole the note for
120,0001. because I thought it better to do so.
Cole claimed that aViount. Cole was to have
cleared all the warrants, which were delivered
to the extent of 20,0001. I did not hear the other
40,000 spelter was removed. I believe the spelter
was at the wharf. I went to the wharf after I saw
Chapman. I saw a vast quantity of spelter at the
wharf. I believe it was all there, even 60,0001.
worth. I did not calculate how much spelter and
copper were at the wharf. I believe it was all
there—that I swear. This was after the interviews
with Mr. Chapman. I did not hear Cole say there
were no goods to represent the warrants—l swear
that too.
Mr. Chapman's evidence was then referred to.
It was objected to by Mr. Roxburgh.
Mr. Linklater—l only want to ask the witness
whether what Mr. Chapman says is correct or
incorrect.
Mr. Roxburgh—The evidence was taken behind
the back of the bankrupt, who could not cross-
examine him.
Mr. Linklater—l am about to read the evidence
given by Mr. Chapman at the trial. •
Mr. Roxburgla—And I object to that. If there
be a shorthand writer's note it must be proved.
The Old Bailey reports are not authorised. You
might as well read a newspaper.
Mr. Linklater would put the question differently.
Witness said that, according to his recollection,
what Mr. Chapman stated about a conversation re-
garding fictitious warrants was not true ; that it
was not taken for granted at the interview in ques-
tion the warrants at the wharf were fictitious. I

heard the warrants could not be iieiive;d.-iiiCard
53 warrants had been stopped by Cole, but I never
heard they were without value. , I never heard
until after my bankruptcy that the warrants held
by Messrs. Overend were without value. I should
say there was a loss of 40,0001. by the warrants.
Mr.' Chapman used no unkind language to me.
The interview lasted about half an hour. No one
was present. I had an interview afterwards with
Cole. The interview with Chapman did not last
three or four hours, up to 12 o'clock at night. As
well as I remember, Chapman said, " I wish the
matter to remain between ourselves." After we

went away Cole got into difficulties. I do not
recollect that Chapman told me there were
I not any goods at the wharf to represent the
; warrants. I heard Overend and Co. lost 40,0001.
by the warrants ' but I do not know it.
; We became indebted as agents to Messrs. Freeman
and Co. Mr. P. Vaughan was a partner in that
house. We had communications with him ;we did
. not tell Mr. Vaughan we were using their monies
in our business. If Mr. Vaughan said I stated we
had been using their monies for our purposes he
must have misunderstood me. That is not true.
We owed Freeman and Co., 14,0001. in October,
1853. I do not recollect having given Messrs.
Freeman warrants for goods at the wharf ',Acne
. October, 1853. I gave Mr. Vaughan one warrant.
I heard that the' goods were there, • and that the
goods were not there, and that Messrs. Freeman
got nothing.
...We gave them our note for what we
owed them, and continued to be their agents down
to the tine of our leaving, the country. Messrs.
Freeman pressed us to make large sales of property.
We did so, and made the sales to ourselves,
and shipped the copper on our own account. We
did not inform them we made the sales to ourselves.
I do not recollect we told them we made the sales
to any one else. Yes, in one or two cases, it' was
so to the extent of about 5 000 k., perhaps. It was
our duty to send true accounts of the sales, but I do
not consider we sent untrue accounts. We paid
Messes. Vaughan, Freeman, and Co. a part of their
debt in bills and money. They are not creditors
now. There are some liabilities on bills of Mr.
Hudson, but I believe they got security. They ap-
pear on the balance-sheet as liability creditors on
bills receivable, 11,0001. We owed to unsecured
creditors 150,0001., and in January, 1853, 86,0001.
to unsecured creditors. We went on down to June,
1853, buying goods and raising money on them. I
considered I was solvent after both Cole's and
Webb's failure. We had the distillery, and there
was a large amount of consignments. Those con-
signments were not pledged. I find there was an
unsecured margin of upwards of 100,0001. I gave
up good debts, 378/. ; property, 2,200/. ; doubtful
debts, 5,3491. Up to the last I purchased and con-
signed goods, generally borrowing money upon the
goods. I went abroad June 17, 1854. I left because
I could not meet the debt due to the excise, 7,1001.
I knew there were other engagements coming due.
Davidson and I went to Ostend. We took 1,500/.
with us in bank notes ; 500/. I got from Davidson,
and the other 1,0001. from bills discounted. I paid
on the day I left, for spirits, 3,100/. for GI +men,
Clarke, and Co.-rand Hayes. I got bills for 3,1001.
discounted. I received 2,600/4 but I.may be wrong.
We got 5001. besides from Messrs. Nicholson. Ben-
nison 'and Leonard discounted the bills I had in my
posseSsion on June 17, 3,100/. I considered the 500/.
as Davidson's own. A portion was given to Mr.
Elmslie, 1,600/. ; was our solicitor—a portion
hink, Sax-
.for law costs and aportion to retire. I t