The Sun.
London, England, 1857-12-30 00:00:00

Tlig GLASGOW BANKRUPTCIES.

(From the _Worth British Daily Mail.)
The two cases of bankruptcy which have given
Glasgow an unenviable notoriety at this period,
which may be said to have sealed the fate of the
Western Bank, and which have had an influence
both on public and private interests far beyond
what could almost have been believed to lie within
the range of such causes, have run their course of
investigation before the sheriff, and we are not
likely to hear much more of the firms of D. and J.
Macdonald and John Monteith and Co. The aspect
of these concerns has somewhat changed since they
first began to be a subject of rumour. That of the
Macdonalds does not appear nearly so good in the
examination of the bankrupts, nor that of John
Monteith and Co. quite so bad as was predicated.
The publication of the bankruptcy examinations,
therefore, will be found in a rather signal manner
in' these cases to give every man his due, and to
prevent what is bad from appearing either better
or worse than it ought to do.
The history of the firm of D. and J. Macdonald
and Co., as disclosed in court, is as melancholy a
chapter as could well be gleaned from the annals of
private enterprise and speculation. The firm is so
interesting and honourable in its origin, and so
reckless and revolting in its fall, that one can only
trace its progress with the most mingled feelings,
while every step in its upward and doivnwald
career is fraught with instruction and warning.
The father-of these young men had made money in
the sewed muslin trade, in Paisley. In 1834 he
retired, transferring to his two eldest sons the good-
will and a balance to their credit of 1,7001. In
four years this sum had been ne rly doubled by the
profits of the business. Two other brothers were
then assumed as partners, the father putting 1,0001.
into the firm for them, and each of the four brothers
being allotted a share in proportion to their interest.
Industry, frugality, and a determination to save
and gain by honourable means were then the cha-
racteristics of the firm, which consequently pros-
pered and rose gradually to moderate wealth and
distinction. In 1841 one of the brothers died, and
on a balance it was found that there was 6,1391. to
the credit of the firm over and above capital, or what
had been left or given to it as such by the father.
Up to this time the partners bad restricted them-
selves to moderate saleries, and drew nothing from
the profits. But in two or three years more a change
came over the spirit of their dream. The ambition
of extending their business, and of seizing the lead-
ing position in the trade, began to urge them into
hazardous courses. In 1845 they bad recourse to
8,0001. of accommodation bills. These were chiefly
concocted, however, through their father and one
or two agents who had the goods of the firm con-
stantly passing through their hands. About the
same period, or shortly after, and while their accom-
modation paper was increasing, they entered into
larger premises, the annual rental of which was
1,3001. Their business wasalready too large for their
capital ; yet they strove eagerly to enlarge it ; and,
in doing so, encountered rental, taxes, and expenses
which would have been most formidable even with
the possession of the requisite funds for carrying on
such extensive operations. This was the first
step to ruin. Still the firm went on, making profits
apparently exceeding losses and charges, one
brother going out and a new ono coming in, till in
1851, on the death of James, there WAS found to
be a balance at credit of 28,000/., and the firm be-
came bound to pay 11,0001. to the executors of the
deceased partner. In 1852 and 1853 trade was
prosperous. The balance of the latter year showed
40,0001. to the credit of the firm, and with this
shoal of profit came a new dream of ambition. The
money market was easy. The bullion dealers had
filled the vaults of the Bank of England with gold,
and that establishment was overflowing with paper
notes. Credit, loans, and accommodation ware
very cheap in terms and unlimited in amount.
The Macdonalds in this state of affairs entered into
extensive building operations, which cost before
[ they were completed no less than 90,000/.. being
20,000/. more, of course, than was estimated. This
most unwise speculation, considering that the ordi-
nary business of the firm was carried on by accom-
modation bills, now swelled to 80,000/., had
scarcely been set afoot when bad debts were made
to the amount of 23,000/. The builders were paid
by bills at long dates, the rates of interest being as
low as 21 to 3 per cent. In 1855-56, when these
bills had to be paid off, the accommodation paper
of the firm jumped at one leap from 85,000/. to
188,000/., the interest being now from 5 to 7 per
cent. Entrance into extensive premises led of
course to new efforts to increase a business that had
many years been much too 1 age, and consequently
to increased business expenses,
.which, together
with the enormous sums paid for discounts amount-
ing in one year to 40,000/.), swallowed up not only
profits, but capital, stock, credit—all. At this
stage a tendency to gamble in paintings was de-
veloped in the leading partner of the firm. At the
balance of 1856 the sums to credit which had
hitherto appeared had totally vanished. The
course of ruin was run, and everything was pre-
pared for the moral fall which took place in the
spring of this year, when the extraordinary, fatal,
and disgraceful expedient of hiring worthless parties
in London to sign bills at a commission of 1 and
11 per cent. was adopted and carried out till the
accommodation paper of the firm rose in a few
months to the verge of 400,000/. Did any history
ever exhibit more strikingly the importance of
avoiding the beginning of evil ? What a lurid
glare does that 400,000/. of wind-bills, all but
forged, and the filial catastrophe in which they ex-
ploded, throw back over the 8,0001. of accommoda-
tion in 1845, and all the various errors and follies
of the intervening years ! .

The case of Jogri Monteith and Co., as explained
by the bankrupt himself, is that of a firm over-
whelmed by losses, accommodations to others, and
by the ensnearing entreaties of a bank manager to
aid in propping up various concerns that were
rotten to the core. Much of this may be true.
There can be no doubt that John Monteith and

The follftwimg..letter front Capt. J. S. Castle, the
commander efAhe Sarah Sands screw transport-
steamer, has been •reeeived by Messrs.
.Walton,
shiFbi.okers,.!aVaa.ceiehtirch-street, relative to. the
partial destruefitegpf the ship-by fire- and the es-
capeflre discovered
sttv earfeide r aorlvoepry deckstr4
of the t
shstmareomooekpenes:tii
isimsedusei er e c v ;
"A : t about 3 45 p.m., on'th cf November,
troops were berthed), an. :'.,,, -- .7
,ng into the
hold found it to be on \-e. :AA immense
in, and the ship brought
were
orderedoelrllemate s
taoillfle
below.
-- --t.,. '''''
._ll. of lire arising
"I then requested Col. aVi.G.L. ..; t to have all the
ammunition thrown overboard, an:-1 succeeded iu
clearing the starboard magazine.' By this time the
whole of the after part of f'n "ship was so much
enveloped in smoke that itAvas scarcely possible to
stand, but volunteers cane: : vt .---i'atiernpted to
clear the port magazine?;wi . ; : -37 succeeded. in
doing, with the exception.' id suppose) of one
barrel. Several of the men were dragged up. sense-
lea ' m below while thus- engaged.
e
" I ordered all the boats to be, lowered, placing
ght.ritoggtelbirerh:44;..;r:6:-!„.;n:icd'athimlsollos2mrasesaoeeildplitafaaasstnktelds:hdnye
the ladies in the port life-he-4 iir the chare of
Mr. Verey, third officer, . _ 4m orders to keep
clear of the ship until rev
~,. . iVe4-, chief
officer, was forward hoi- • ::- ' ,e cutter and
longboat, which was de- _ '- - --' o,;cia-ent. 4 then
commenced constructing -:, ' .':'' •'-e I raunched
~ .
keeping a third across • 1 ,- . . -i in readi-
ness.
two overboard, and safe ~ • :Jai alongside,

~,.

v

At about 8.30 p.u. through the
upper deck, and shortly izen rigging t-ok
fire. I was then fearf.: .p paying off, but
fortunately the after • burnt through
and the ;712.0v-A oiruna,"rc,
the,. a fearful Atiook place in
thc4ort magazine. By this time the ship was one
.b2dy of flame from the stern to the main riggiogi
and thinking, it =timely possibletr gawk; . -
called Major Brett (in command of the troops) for- -
ward, and told him my opinion, requesting him to
endeavour to keep order among the troops till the
last, but at the same time to use every exertion to
cheek the fire.
" No person can describe the manner in which
the men worked to keep the fire back, one party
were below keeping the bulkhead cool, several of
whom were dragged up senseless, and fresh volun-
teers took their places, but were soon in the same
sta4e.

"At 11 p.m. the maintopsailyard took fire. Mr.
Welch, one quartermaster, and four or live soldiers
went aloft with wet blankets and succeeded in ex-

tinguishing it, but not until the yard and mast
were nearly burnt through. About midnight we
appeared to have made some impression on the
fire, and after that drove it, back inch by Inch until
daylight, when it had been completely got under.
" The ship now appeared in a fearful plight ;
n
omuetreblyy
ttbh eo
ezplo~ion?, n 1 isn gf
e,
etthe of pwoartteciruianntehrebhl oowl
and the ship rolling heavily and taking in large
quantities of water aft.

"As soon as the smoke was partially cleared
away I got spare sails and blankets aft to stop the
leak, passing two hawsers round the stern and
setting them up. The troops were employed baling
and pumping, the ship rolling heavily, and the
tanks rolling from side to side in the hold.
"About 10 a.m. the ladies joined the ship. I
then orderedall the boats alongside, but found the
sea too heavy for them to remain there; the gig,
however, had been abandoned during the night,
and the craw, under Mr. Yard, fourth officer, got
into another of the boats.

" The troops were employed during the remainder
of the day bailing and pumping, and the crew in
securing the stern. Throughout the night all
hands were engaged in bailing and pumping. The
boats were secured fore and aft, but several were
severely damaged.
"At daylight on the 13th the crew were em-
ployed hoisting in the boats, the troops working
manfully in bailing and pumping. Latitude at
noon 13 12 S. At 5 p.m. set foresail and foretop-
sail, and bore for the Mauritius. On Thursday, the
19th, sighted the Island Roderigues, and arrived
at Mauritius on Monday, the 23d.
" J. S. CASTLE, Commander."

1858 —LETTS'S LARGE PRINT SHEET
• ALMANACK, price 6 pence, for aged
or near sighted persons, also LETTS'S DIARIES in above 100
varieties, from 6 pence to 14 shillings each. Cellar Books, Game
Books, Stable Books, etc. Sold by all Booksellers. Catalogues
gratis.

Letts, ion, & Co., stationers and mapsellers, 8 Royal Exchange

I[ER MAJESTY'S THEATRE.
LA TRAVIATA.

Piecolomini, Spezia, Giuglini, Belletti, Rossi, Vialetti,
and Aldighieri.
The following favourite operas will be given :
TO-MORROW EVENING (Thursday, Dec. 31),
LA TRAVIATA.
Saturday—LUClA DI LA.MMERMOOR.
Prices :—Pit Stalls, 12s 6d; boxes (to hold four persons),
pit and one pair, 2/. 2s ; grand tier, 3/. 3s ; two pair, 11. 55.;
three pair, 15s ; gallery boxes, 103 ; gallery stalls, 3s Gd ;
pit, 3s 6d; gallery, 2s.

THEATRE ROYAL, HAYMARKET.
Lessee—Mr. J. B. Buckstone.

THIS EVENING, to commence at Seven o'clock, with
SPEED THE PLOUGH. Characters by Messrs. W. Farren,
Compton, Chippendale, Mrs. Poynter, Mrs. E. Fitzwillia.n,
and Miss E. 'roman. . . . • • • "

After which, a new comic Christmas Pantomime, entitled
THR SLEEPING BEAUTY IN THE WOOD ; or, Harle-
quin and the Spiteful Fairy. Harlequin, Mr. A. Leclercq ;
Columbine, Miss Fanny Wright ; Pantaloon, Mr. Mackay ;
Clown, Mr. Charles Leclercq.

Orchestra Stalls (which may be retained the whole of the
evening). 6s. each. (No charge for booking.)
First Ace. s. d. Second price. s. d
Dress Boxes 5 0 Dress Boxes 3 0
Upper Boxes . 3 0 Upper Boxes 2 0
Pit
Lower Gallery 1 0 Lower Gallery 0 6
Upper Gallery 0 6No half...l:Price to Upper Gallery.

ROYAL PRINCESS'S THEATRE.—LAST
NIGHTS OF KING RICHARD THE
szCOND, THIS EVENING, To-morrow, and Friday next.
On Saturday, THE CORSICAN BROTHERS.
On Monday next Mr. Charles Kean will make his first ap-
pearance these two ran in the character of Hamlet.

ROYAL PRINCESS'S THEATRE.
Proprietor, Mr. Charles Kean.

THIS EVENING, will be performed Siszacspere's Tragedy
of KING RICHARD 11, King Richard 11., by Mr, Chas.
Kean ; Queen, by Mrs. C. Kean.
After which, a now grand comic Christmas Pantomime,
entitled HARLEQUIN WHITE CAT ; or, The Princess
Blanche Flower and her Fairy Godmothers. The Princess
Blanche (White Cat), Miss Kate Terry ; Harlequin, Mr. Con
mask ; Clown, Mr. HuTine ; Pantaloon, Mr. Pardo ; and
Columbine, Miss C. Adams.

THEATRE ROYAL, A DELPHI.
Lessee—Mr. Ben. Webster.

THIS EVENING, THE WEPT OF THE WISH-TON-
WISH. Mr. Wright and Madame Celeste.
After which, a Mythological Extravaganza, entitled
HARLEQUIN, OR THE LOVES OF CUPID AND
PSYCHE. Jupiter, Mr. Paul Bedford ; Mars, Mr. Frank
Hall; Venus, Mrs. Billinlion ; Cupid, Miss Marie Wilton ;
Psyche, Miss Mary Keeley.

ROYAL LYCEUM THEATRE.—SoIe Lessee
and Manager, Mr. C. Dillon.—

THIS EVENING, will be p esented Sir E. L. Bulwer's
*lay of RICHELIEU. Richelieu, Mr. Charles Dillon; Ba-
Vedas, Mr. Stuart ; De Mausprat, Mr. J. G. Shore ; Joseph,
'Ur. Barrett; Julie, Mrs. Charles Dillon; Francois, Miss
W.olgar.

To conclude with:the Burlesque and Pantomime, LALLAH
ROOKH, and the PRINCESS, the PERI, and the TROU-
BADOUR, ' • or, Harlequin and the Ghebers of the Desert.
Supported by Mesdames Sharles Dillon, Buckingham White,
Eliza Webb, Maria Ternan, Esther Jacobs, and Woolgar ;
Messrs. Barrett, Calhaem, Holston, Fitzhenry, Poynter, and
J. L. Toole. Clowns, Messrs. T. Matthews and R. Stilt ;
Harlequin, Mr. J, Ricketts; Pantaloon, Mr. A. Stilt ; Sprites,
Herr Zeleski and sons ; Columbines, Misses A. Malcolm aid
Lees. Gorgeous Feast of Lanterns.— Fenton's Grand Trans-
formation Scene,

Doors open at half-past 6, to commence at 7.
Morning Performance on Saturday next, Jan. 2, on which
occasion the Boys of the Licensed Victuallers' School will
attend.—Doors open at 2, coirraence at half-past 2.
3os•office open from 11 to 5 daily,

I,)OYAL SURREY THEATRE,
Lessees, Messrs. Shepherd and Creswick.

THIS EVENING, will bo performed BROKEN FAITH.]
After which, QUEEN MAB • or Harleciain Romeo and
Julliet. Clown, by the Surrey Buck ; Pantaloon, Mr, Brad-
bury,

QTRAND THEATRE.—Lessee, Mr. T. Payne.
—THIS EVENING, will be performed
HARLEQUIN NOVELTY AND THE PRINCESS WHO
LOST HER HEART, Harlequin, Miss Craven ; Columbine,
Deulin ; Sprite, Herr Kirt. The Lambert Family
and the Red Man of Agar in their wonderful performance,
%Ste.

Commence at Seven. Stalls, 3s. ; Boxes, 21. ; Pit, ls.;
Gallery 6d.

CANTERBURY -Ft A.LL , Weßtmin3ter-roarl.
OPEN EVERY EVENING.—The follow-
lg company of Vocalists are engaged for the performance of
S•leetions from all the popular OPERAS, MADRIGALS,
CHORUSES, GLEES, DUETS, &e, viz, :—Miss Russell,
Mrs. Badzey, Madlle. Marietta, Mrs. Palmyre, Miss Bra-
nell, and Madame Marietta; Herr F. Jonghmans, Mr.
Renshaw, R. Grover, T. Tarrant, S. Jones, J. Barker,
W. Melling, Senor Antonio, E. L. /lime, and 3fr. St.
Albyn; Messrs, S. Collins, IV. T. Critchdeld, and E. Hack-
ney. Pianoforte, Mr. Cecil Hicks; harmonium, Master
Williams; Director, Herr F. Jonghmans. Commence at
Seven o'clock precisely, Suppers, &c., until twelve o'clock.

RIGS WATER AT LONDON BRIDGE.
MIS DAY—Morn., 42 min. aft. 12 —Even., 10 min. aft. 1
To-110BROw —Morn., 37 min. aft. I —Even., 5 min aft. 2

THE WE ITFIER.—Sux OFFICE, DECEMBER 29.
IfiItBMOMETER, IN THE SRA.DE.
49—highest sines noon yesterday.
42—lowest this morning and during the night.
45 —this day at noon.

BAROMMT3II, 30.62.
WIND, S.W. ; light, with a dense fog all the morning,
and still continues..

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