The Sun.
London, England, 1859-01-11 00:00:00

COURT OF BANKRUPTCY, Jan. 10.

(Before Mr. Commissioner Goulburn.)
IN RE JAMES PARKINS.
The bankrupt is described as an auctioneer, of
No. 5, Grocers'-hall-court.
This was a meeting for proof of debts and last
examination. Mr. Book appeared for the assignees,
and Mr. Lucas for creditors.
The report of the official assignee (Mr. Pennell)
sets forth that the bankrupt appears before the
court for the third time. In 1834 the bankrupt
owed £1,271, and paid 7s. in the pound ; in 1851
he owed £4,677, and. paid ls. 11d. in the pound, on
that occasion receiving a third-class certificate after
12 months' suspension ; and on the present occasion
the debts are £751 without any available assets.
It would further appear that in April, 1857, the
bankrupt, having a surplus of £3,512, settled his
furniture and £2,000 upon his wife.
A proof for £373 was tendered by Mr. Charles
Lyne, stockbroker.
Mr. Pook said he must object to the proof. It
arose out of time bargains on the Stock Exchange
with a myth.
The Commissioner—How does the debt arise ?
Mr. Lyne—Brokerage on Consols.
The Commissioner—What amount ?
Mr. Lyne—About 140,000 or £50,000.
The Commissioner—ln what period ?
Mr. Lyne—ln the months of May and June.
The Commissioner—The claim arises on time
bargains ?
Mr. Lyne said it arose out of brokerage and
losses as paid to the jobbers. He (Mr. Lyne) was
a broker, not a jobber.
The Commissioner—l doubt whether the proof
can be allowed. It arises out of gambling transac-
tions. You had better not go into it if you wish the
bankrupt toliave a certificate. What is the amount
of loss upon such transactions that disentitles a
bankrupt to a certificate ?
Mr. Hook-1200 within 12 months of the bank-
ruptcy. Here that case does not occur. The alleged
loss has not been paid. If it has not been paid it
cannot be a loss.
The Commissioner intimated a different opinion.
Mr. Lyne partially explained the character of his
transactions, which was to purchase in May or
June Consols for July account at a difference of
'Z. per cent. The bankrupt anticipated a rise. He
(Mr. Lyne)had paid £75 on the bankrupt's account
to jobbers for the " option" of demanding the de-
livery at a future day.
The Commissioner—That is a gambling transac-
tion—a transaction at the gaming table. I think
brokerage on these transactions cannot be recovered.
It is a gambling transaction, and the less said about
it the better.
Mr. Pennell—The bankrupt accounts in his
balance-sheet for profits of £7OO or £BOO on trans-
actions of this character.
Mr. Lucas—l will show that the amount ought
to be £1,500 or £1,600.
The Commissioner said it was contrary to public
policy that such debts could be recovered. All
parties who in any way had been particeps crirninis
could not recover.
Mr. Lawrance said the case was one of very great
importance to stockbrokers. If a person entered
into transactions for his own benefit he could not
prove, but the case of brokers had been held to-
be different.
The Commissioner—l cannot understand broker-
age upon a transaction that. is only ideal. I must
disallow the proof unless I am shown authorities to
the contrary.
Mr. Lyne explained that the claim was thus made
up :—.125 for brokerage, and £75 on account of the
" option" adverted to.
The Commissioner—To whom was this paid ?
Mr. Lyne—To two jobbers ; one-half to Mr.
Murray Richards on a transaction in £lO,OOO Con-
sols ; the other half to Mr. Ellis Williams on a
transaction in £lO,OOO Consols. I did not demand
in July the stock which they undertook, if called
upon, to deliver, and I had to pay the difference,
the bankrupt failing to do so. I also claim £273
for differences paid on account, being the actual loss
that I have sustained in consequence of the bank-
rupt failing to take up the stock.
The Commissioner—l should now like to see the
case cited in wapport of the proof.
The cases-" Knight v. Fitch," 24, Law Journal,
New Series, part 2 ; and " Grisewood v. Blane,"
21, Law Journal, New Series, part 2, page 46, were
then cited.
His Honour decided that the eases were not ana-
logous. A stockbroker was not, in his opinion,
entitled to prove as for work and labour done
where he knew he was employed to effect time bar-
gains. The gentlemen of the Stock Exchange,
who took so great an interest in the question might
if they thought proper appeal, but he must reject
the proof altogether.
It was here objected that the bankrupt had in
his accounts debited himself with only about £BOO
as profits on time bargains, whereas Mr. Lyne and
Mr. Rogers could prove the payment to him of
£1,500 on account of such profits. It was also de-
sirable to investigate the circumstances under
which the bankrupt had effected the settlement.
The Commissioner doubted whether, in respect
to the alleged difference between the £BOO and
£1,500, the Court could call upon the bankrupt to
produce, as it were, his " betting-book." (A laugh.)
Mr. Lucas—But if the receipt of the money can
be proved he may be called upon to account for its
application.
The Commissioner—Certainly; and, as regards
the other point—the settlement—it has been made
so recently, such a short time before the bank-
ruptcy, and the bankrupt's visits to this court must
have made him so familiar with the law of settle-
ments, that it may be a fair subject for inquiry.
There will be an adjournment for the purposes
required.
Adjournment accordingly.

MIDDLESEX SESSIONS, Jan. 10.

(Before the Assistant-Judge.)
The Court sat to•day at the Guildhall, West-
minster, to hear petitions and appeals. Altogether
there were 108 entered on the list, 31 of which
were parish appeals involving questions of settle-
ment, three were against convictions, and the rest
(including two by the parish of Hammersmith,
against the basis or standard for the county rate)
were appeals by various public bodies against local
rates. A number of these were disposed of by. con-
sent, and those for trial were adjourned until the
11th of February. The court was occupied the
whole of the day in disposing of the parish cases,
which were not of the least public interest.