The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-07

T
from stealing outright the funds placed in their hands,
But laws can be passed and measures adopted which
VIII prevent 10 considerable extent. the enormous
| deialcations and plundering operations which win
have been gong on to alarming extent in
| monied institution and large corporatiOns Let us
look the evils in the face whilst taking all the blame
that properly attaches to the past \
The Dcfhlcation ut Worcester. Mas.
A correspondent of the Boston Traveller furnishes
that journal with particulars relative to the failure
of II. ID. Stone, and his subsequent fight from Wor
cester, with liabilities amounting he says, 10
$4,000 OF $l50,000. 1t seems from this commune
cation that Stone for several years past has done
the larger portion of the criminal law business which
honest lawyers repudiate, and was counsel for cer
tain organized gangs which made crime their pro-
fession. He seems to have preyed on misfortune at
large by becoming bail for parties, on mortgage Be-
curity and then swallowing up their whole estates
Latterly he has flown at higher game, and inveigled
some Of the rich men of Worcester into his tolls
The holders of his paper are legion. Many had held
his paper but few days, having taken it to secure
doubtful debts and paid several times the amount
OF the debt supposed to have been thereby secured
to get the paper, the notes bought being several
times the amount of the debts paid by them. For
instance, young man owed bill of $25, which the
creditor wanted paid. He offered to pay the BILL il
IL. ".
note for $780, This the creditor did, surprising the
note as good as the cash, and paid $275 after de-
Quoting the bill. This was but few days before
the failure and is but Of several instances of tho
KIND; bvt the other were for larger amounts
Commercial Frauds In England-The Kite
Bill System Of her Traders.
,s Erom the London Times, (City Article) Jan. 1871
II the public have attended to any of the provin-
cial trade reports lately published, they will have
observed that revelations are still going on in al
parts OF the country of system Of disreputable bill
ertsd g lar beyond even anything that was sSs
operation of the Bank Charter act was Commenced
in October last. They will also have noticed the
almost universal desire on the part of creditors 70
| cloak the offences that have been committed. The
experience Of single day will be sufficient as an
| illustration Take the reports of yesterday. One
firm in the clothing districts, which, in the usual
now announced to have defntively stopped, with
liabilities Of great magnitude and assets estimated at
| as. III the pound. A number of smaller stoppages
then follow-certan sets OF houses going down like
CARDS; and next we have an account of nvestiRa-
ton into the affairs of another establishment aeQ-
ed to have been rendered necessary in consequences
OF disclosures as to the manufacture of fictitious
paper This is followed by paragraph to the effect
that at a late meeting on the affairs of Messrs
! Cheesebrough Son, of Bradford, motion for the
names OF the creditors to be inserted in the balance
sheer was rejected by majority of one its object
| having apparently been to expose to view certain
parties who have been trafiicking in accommo-
daton bills, so that any future transactions with
such houses may be regulated by full know
J ledge of the liabilities they have thus incurred"
Here the meeting plainly made themselves accom-
pces in whatever irregularities may have been con-
mitted The object could not have been the natural
one of seeking to avoid the creation of difficulties
and the dangers Of the Bankruptcy Court since the
desired publication could not have interfered with
any proper arrangements Its real nature has yet to
be explained. All that is papable is that influential
combinations exist to prevent this corruption from
| ara at tha lima
reported from South Staordshire owing to the pres
sure exercised by the Wolverhampton and Stafford
shire Banking Company to recover as much posi-
! bic on the overdrawn accounts of their CUSTOMERS
Whether there have been operations of the usual
kind in these cases does not appear but the system
OF banks allowing customers to overdraw is nearly
mnation of Messrs. Harrison, Watson, Il Co., the
| bankers at Hull who stopped for 5000 000 and who
confess that for years past they have never troubled
themselves to make balance sheet. They had ad.
yanced an enormous total to various establishments
from whom there was no prospect of recovering q
| sixpence; but although they were living from day
| to day upon the property entrusted to them they
would seemingly not have stopped yet but for
collapse in another quarter. Their position,
however, is to be scrupulousy respected. The
Bankruptcy Commissioner required an answer
touching certain spurious. draughts. He styled
them accommodation bills and was strongly cor
rected by the solicitor to the firm. This is the
accepted rule. Use any term but the right one
blank credits" general facilities" "open ad-
vances anything that will prevent a casual and
unnstructed reader from precisely understanding the
state OF the case. The future prospects of our ZEN
terprising" traders must not DO nconsderatey
crushed. Most people know what an accommoda-
| tion bill is-namely, a document concocted by two
persons who conspire to defraud third by passing
II TO him as representing valuable property and the
reputation of having been engaged in such bust
ness might even under the liberal commercial views
of the present day impede the commencement of
new carter; but no one is damaged by having been
celebrated for the exercise of the financial skill that
seems TO be implied by the more euphonious phrases.
After the case Of Harrison Watson a Co. comes
that OF Messrs Gray and Crow Of Friarsgoose Che
mica Works, at Newcastle, with debts for ESQ 600,
and assets which may possibly yield f6 900, although
the accountant will not answer forit. Mr.. Gray, the
senior partner, was not disposed TO his difficult
ties. On the 18th of December, when hopelessly in
solvent he had introduced two Of his sons into the
business, and had assigned to them twothirds of the
now proposed TO pay his creditors 20s. in the pound
In the course of -four or five years II they would take
his word TO that effect, and leave him meanwhile to
60 on undsturbed. Unhappily an announcement
property that still remained put a stop to
this dream Of renewal of his commercial
usefulness. In London at the same moment meetings
were taking place, more or less exhibiting equally
unsatisfactory features. IL Is only few days since
Messrs. Mackenzie, Ramsay X Co, of Dundee, wrote
to the Times, emphaticaly stating that they had not
resorted TO accommodation bills, when a reference
TO the report Of the Sherf's court in that town
showed that in the previous week the partners had
solemnly deposed that they had adopted the prao-
tce in its most direct aud deliberate FORM OF course
the belief that the contradiction would pass in
London. Like sbamelessness IL exhibited on
all sides and there is no use in pursuing
the subject. As debtors and creditors arc
widely leagued TO defeat inquiry, as solicitors
and accountants called to assist them.
and to cry down every dssentent who may have
sympathy for his country and none for rogues, and
~ the law officers Of the crown witness all that
Is going on, and complacently make the avowa that
they are !" not aware whether any one proposes 70
90 anything, there Is little prospect that the evil will
institution of commerce. If joint stock hanks -
allow interest for money at call within one per cent
o. the rate charged for three months discount,
they must, Of course, find a sufficient supply Of pa