Star.
London, England, 1824-11-12 00:00:00

MESSRS. MARSH AND SON.

In addition to the erablishment in Berners-street,
under the firm of Messrs. Marsh, Stracey, Fauntleroy,
and Graham, Mr. Marsh, some. years ago, entered upon
a ,peculation with his son, Mr. Arthur Cuthbert Marsh,
as Navy Agents, in Scotland-yard. In consequence of
the recent failure of the Banking-house, inßer nei s-street,
tl,e creditors of the Navy Agency establishment have
become much alarmed for the safety of their funds
jested in that concern, and at the invitation of Mr.
_ _ _ _ _ _

Seymour, Mr. A. C. Marsh's Solicitor, and who, up to
the fiilure of the I3anking-house, acted likewise as
Solicitor for that firm, between► thirty and forty of them

met yesterday, at one o'clock, at the British Coffee-
house, in Cockspur-street, for the purpose of examin-
ing into the state of the affairs of the Navy Agency
establishment. On the motion of Mr. Seymour, Sir
BE?JAMIN HALLOWELL was called to the Chair.

Mr. SEYMOUR said, that he held in his hand a case
which had been submitted to the opinion of Counsel,
hut previous to reading which, he would briefly state
the nature of the circumstances, which was, that the
account standing at the banking-house in Berners-street,
in the name of Mr. A.. C. Marsh, was considerably
overdrawn, and if for this over-drawing Mr. A. C.
Marsh was liable, there could be no doubt that he was
insolvent. It was the interest of every one of the cre-
ditors of the Navy Agents to avoid this, and conse-
quently, if any such claim was made by the assignees
of the bank in &tilers-meet, it was for them to resift
it as far as in them lay. Having stated thus much of
the outline of the business, he would now proceed to
read the case which be held in his hand. During its
perusal, Mr. Seymour stated, for the information of the
company, that the arguments in the case were founded
on facts, admitted as well by the Berners-street assig-
nees as the creditors of the Navy Agents, and in reality
those assignees had been as anxious as themselves to
obtain the opinion of Counsel on the point, that they
might know how. to proceed. He mentioned this to
thew that the opinion of Counsel had not been taken on
an ez pal le statement.
The case then stated, that in May, 1817, a partner-
ship was harmed for a term of twenty-one years, between
Ir. William Marsh, the father, and Mr. Arthur Cuth-
bert Marsh, the son, as Navy Agents. The articles of
partnership were dated May 20, 1817 ; but it was therein
:tweed that the son should not be considered as a partner
till the sum of 44,000/.l'hree per Cents. were invested by
him; this sum had never been so invested, and be bad
1:orn that time to the present continued to act in the
dice on a salary of 8001. per annum, withuut haetng
any share whatever of the profits accruing. Previous
to this contract of partnership, Mr. W. Marsh had been
tarrying on the same business since the year 1815; and
before his son's at all appearing in the concern, bad
overdrawn bis account in Bemers-street, to the amount
of $,OOOl. At Berners-street it was perfectly under.
stood that Mr. A. C. Marsh had no share in the profits,
although the account of the Navy Agency-house, at the
Banking-house, was kept open in his name; but this
was en a clear understanding that be was not to be
in any way personally liable; this understanding
was first by parole, subsequently by letter. It v‘se
therefore presumed, that all the partners of Her.
nerostreet would testify that they did not considek the
son as perionally responsible, hoicever they might
argue relative to the application of the assets of Messrs.
Marsh and Son ; but in reply to any such argument,
Mr. A. C. Marsh contended that the Assignees of that
bankruptcy could only look to the surplus assets of that
house, after the other creditors had been satisfied. The
letter that annuunced that Mr. A. C. Marsh was not in
partnership in the Managing Office, was written by the
elder Mr. Marsh to his brother partners in Berners-
street, after a very dangerous illness. As the case
stood at present, it appeared that there was a sum of
73,58.51. due to the Berners-street house, from the house
in Scotland-yard; on the account entitled the account
of Mr. Arthur Cuthbert Marsh, for which indeed the
former house held several valuable secucities, but
which, comparatively, would go but a small way
towatds liquidating that account. The surplus assets
were calculated its amount to 80,0001. and this was the
only sum that Could be pledged, for the original assets
must not be otherwise reduced; but if the assignees had
really a right to claim on the whole assets, there
would be no doubt that the Scotland-yard house would
be ruined. To ascertain this point, an application had
been made not only to the assignees, but likewise to Mr.
rauntleroy—to Mr. Fauntleroy, because, at the time of
the application, that Gentleman had not been included
in the commission of bankruptcy. The letter that had
been addressed to those persons by Mr. A. C. Marsh,
stated that the overdrawn account was solely his fa-
ther's, and that he, in fact, was merely acting as clerk.
On this letter Mr. Fauntleroy indorsed a memorandum,
stating, that he would not consent to any proceeding
against the house of Marsh and Son, except by joining
with them in appointing a receiver and manager. Mr.
A.C. Marsh then contended, that the house in Berner'.
street had no personal remedy for the cash due to them,
and no claim on the property till the other creditors
were paid.
This case, Mr. Seymour stated, had been submitted
to Mr. Bell, certainly the most able man now alive in
such matters, and with permission, he would read that
Counsel's answer to the case. It was as follows:
" Mr. A. C. Marsh is liable at law to all the debts of the partner-
ship in the Navy Agency business, and if he and the assignees can-
Lot agree in the mode of getting In and applying the effects of that
copartnership, a Court of, Equity will appoint a receiver to get
in the same, and would applt them in payment of the joint creditors.

gi I in,* oho 'reset with iskeldliment the eases lit trot -----
see partner has been allowed to recover in his own manse, became
his other partner was what is called a nominal partner only. and
think, if ever they came to be examined by a mind like Lord El-
don's, whe knows the various consequences of such decisions, both
at Law and Equity, they would never be acknowledged as law.
But howevir a Court of Law may deal with such cases, that
will not prevent Mr. A. C. Marsh's right to have a receiver sp.
pointed. Indeed, it seems more necessary that Equity should in-
terfere for the protection of Mr. A. C. Marsh, if such is the law.
04 Whether the Banking.house can claim to share the joint effects
as a creditor of the partnership, is a question of more difficulty.
But though the money was applied for partnership purposes, yet if
it was in tact advanced upon the mere responsibility and account of
Mr. W. Marsh, as is asserted in the letters, I ass of opinion the
Banking-house has no claim on the partnership effects as a partner-
ship creditor, bat only on the separate estate of Mr. W. Marsh.
(Si g)
" Lincoln's Inn, Oct. 18ned, 1824." "JOHN BELL
Mr. SEYMOUR congratulated the Meeting on the opi-
nion of Mr. Bell, which was decidedly in their favour,
though still it could not be denied that many difficulties
presented themselves in the case. It was certain that
Mr. A. C. Marsh was not personally liable, but that the
'house in Berners-street had all along looked to the
assets, which assets had been deposited with them for
security ; this was an untoward circumstance, and it
was likewise a thing that would tell against them, the
cheques of the navy agents. on the house in Berners-
street, being always signed by Mr. A. C. Marsh, or by
Mr. Stevens, his clerk, expressing that he signed for Mr.
A. C. Marsh, though the real cause of this was to dis-
tinguish the account ar the Navy Agency establishment
from Mr. W. Marsh's private account. The assignees
bad had the candour to state, that since Mr. Bell's an-
swer they had resorted to several other opinions, and the
majority of those opinions they had found to be discou-
raging; the real fact was, that the will of the assignees
was to be ultimately right,-though the responsibility
was not vested in them to decide whether it was for them
to resign all claims to any but the surplus assets ; this
decision rested with the creditors of the Berner:-
street House, and he certainly had some hopes that
they might yield the point, though doubtless, they
bad no inclination to put it desperately to a venture.
—At all events, as it was quite clear that the as-
signees could not take the assets of the Scotland-yard
House into their possession, and pay A. B. or C. he
trusted at least that they would consent to the ap-
pointment of a receiver and manager, to keep possession
till it was decided what the claims of the Berners-street
House were. If Mr. A. C. Marsh had wished to have
saved himself trouble, nothing would have been so easy
for him as to have got a commission out against him-
self, and so have ended the matter; but his real desire
was to do justice to all the creditors, and it was for this
purpose that he opposed the including the claims of the
Burners-street House in the division of the original assets.
A Creditor asked, if the opinion of the partners rela-
tive to the liability of Mr. A. C. Marsh had been given
subsequently to the securities and other pledges being
left at the Berners-street Bank ?
Mr. SZIIBOIII4 in answer, stated that this acknow-
ledgment had been made subsequent to , everything.
For his own part he could not see any objection to the
appointment of a receiver ; for even if a Court of Law
were to decide the great question against them, they
would only be driven back to the point from which they
started, and would have the satisfaction of knowing that
the funds had been preserved whole, without any ex-
pense being attached to such preservation.
On a question from another Creditor, Mr. SEYMOUR
observed, that at all events nothing could be done with
the creditors of the other house for some time, as the
next meeting of the Commissioners was not to take
place till the 16th of December, and it was not likely
that there would be any meeting prior to that, as there
would be no new facts to acquaint the creditors with.

An Arroatter, who stated that he attended en the part of Mr.
Conunisdoeer Middleton, asked where the funds had been remain-
ing up to the present time ?
Mr. Sonswes replied, that of course they had rested in the
bands of Mr. A. C. Ranh.
A Credftor oissretd, that it was a very difficult question to
understand bow, If two persons carry on business together, and
balm a som of 10,0001. that they were not mutually, liable for
the debt.
Mr. Sassrooa observed, that the whole case abounded
with itstricacies, but that, in answer to the particular
objection that had been started by the last speaker, he
would refer him to Mr. Bell's opinion. The most feasi-
ble plan, as it appeared, to him, would be a letter of
license. Mr. Seymour then, after inquiring if there
were any fart* questions, that he could answer ? pro-
posed Mr. A. C. Marsh's, and his own retiring, in order,
that any discussion that might be started might be car-
ried on the mote freely.
These Gentlemen accordingly withdrew, after Mr.
Seymour had submitted the following paper to the at-
tention of the Meeting, as a statement of the affairs
in Scotland-yard:—
An Aecbunt of Debts sad Credits of Was. Marsh and Son.
Total amount of debts, as eztratted from the
Lodgers • $211,788 5
Mr. Pettit's claim . 400 14 6
•

29,168 16 2.
34,024 0 4