The Sun.
London, England, 1857-12-16 00:00:00

proceedings for the reasons stated in the bankrupt's letter,
which he desired should be entered on the record.
Mr. WEBSTEE—The letter is not limited to matters
properly relating to the application for delay, but goes
into other detaile which will come out in his examination
upo❑ oath, so that I do not think it would be proper
that the letter should go on the record. Mr. Ste-
phens, when he reappears, may make any explanation
he thinks fit. The only statement in the letter
which could relevantly be considered here is the plea
of ill health. Now, I submit that this statement
by the person himself is not sufficient, and
ought to have been accompanied by a medical certificate.
In these circumstances the trustee is entitled to apply
for a warrant. Of course, if the officer finds the bank-
rupt not able from ill health to attend, he will not exe-
cute the warrant; but we have no reason to believe
the statement of his health.

The SHERIFF—The more regular way will be Mr.
Wilkie to move for adjournment in respect, first, of his
client's ill health, and second, that he requires time to
examine the books; but I do not see my way to admit-
ting my name upon the record.
Mr. WILKIE—This seems to have been a very unusual
examination, ar,d has opened up many matters on which
the bankrupt was not prepared to answer, and he has
been referred to many books and documents which he
bad almost never seen.

The SHERIFF—That answer was available to the bank-
rupt whenever the difficulty occurred, so he was under
no hardship on that point.
Mr. WILKIE—There is no saying to what extent they
may go on with tills line of examination, and I think it is
a reasonable request that ha should have further time to
prepare himself for such examination. I must make
application to have that letter entered on the record.
Tile SHERIFF—I am afraid I can scarcely sustain this
application to enter the letter. A copy of it was also
sent to me, which was an irregularity. The Sheriff then
gave judgment on the question of adjournment. He
overruled both grounds of the bankrupt's application,
and granted warrant as craved by the trustee. To his
decision he appended the following:—
"Note—The agent for the bankrupt, in opposition to
the above warrant, moved for a further adjournment of
the proceedings on two grounds—first, his client's ill
health ; and, second, the necessity of giving him farther
time to examine the books and documents with a view
to his examination. With regard to the first of these
grounds, and considering that the bankrupt is
in the hands of competent legal advisers, the
Sheriff Substitute has considered himself bound
to overrule the plea of ill health, it not being in-
structed by medical certificate in common form. Of
course, if such a certificate be presented to the officer
executing the warrant, it will be for the officer to re-
port the matter to the sheriff substitute. With regard
to the second plea for delay, it is sufficient to say that
if any question ba put which the bankrupt finds he can-
not answer, without a further examination of books and
documents, it will be competent for him when such
questions are put to call for such books and documents.
But the sheriff substitute will not anticipate that neces-
sity before it arises."
Mr. WILKIE gave notice that within the time pre-
scribed by the statute an appeal would be presented
against this deliverance.
Appeal under the act is taken to the Court of Session,
but it does not necessarily stay execution of such war-
rant. Accordingly the warrant was immediately signed
by the sheriff and handed over to Mr. Webster, the
applicant being the person to undertake the cost and
risk of execution.

The following is the bankrupt's letter to the trustee,
which was handed to the press at the instance of Mr,
Wilkie :

"24, Northumberland-street, Edinburgh,
December 12.

" Sir—l regret that my health having suffered greatly
from the long-continued and harassing examination to
which I have been subjected, I must aik for an adjourn-
ment to some future day befcre concluding it. Such
adjournment is not only called for by the state of my
health, but I require it to enable me to make a careful
survey of the bank books. I was quite unprepared to
go into such an extended and minute investigation of
the bank's affairs, with which, as was repeatedly urged,
my estate has no concern.

" It was unreasonable to expect that I should, on the
instant, account for the coatents of the many ledgers,
books, and documents kept by the subordinate officers
of the bank, or that I should have the responsibility of
the entries therein fixed upon me.
" At the last examination the 'Deposit Journal' was
placed in my hands, and I was shown the entry of a
transfer of 3,0001. from the account of ' Stephens and
others' to my personal account. I was askel whether
such transfer had been made T Presuming that the entry
Was correct I erroneously answered that it had been ; hut
a subsequent inspection of the book in Mr. Webster's
hands convinces me that the entry was an error, that
such transfer never did take place, and Mr. Webster has
since admitted to me that the said entry was wrong.
"I submit that the discovery of so serious an error
requires that ample time should be allowed for a thorough
investigation of the bank books, and lam certain that
after it I shall be able to rectify any inaccuracies my
lengthened examination may have produced. The ad-
journment will also enable me to show that all the ad-
vances made by Colonel Waugh were brought to the
knowledge of and sanctioned by the directors ; and the
eacurities covering the same were considered ample ; and,
that so late as Feb., 1857, Col. Yates, one of the Com-
mittee of Lhaidation and a director, assured me that
C.lonet Waugh's ' security only wanted time to make it
worth a million.'

" I have instructed Mr. Wilkie to make the necessary
application for an adjournment, and also for an orthr on
the bank to produce the books in the custody of the
sheriff-clerk, that I may delib3rately and carefully go
through them, after which I shall be prepared to corn.
plate my examination.—l am, sir, your most obedient
servant, " J. E. STEPHENS.