New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1860-10-26

sures just made in BasfnghaI street, in the case IN
which we are referring and Is determiHateIy elected
and brought out in detail by Mr.. Linkaters eross-
examination The bankrupt admits case after
case of it. Mr.. Herbert Smith told me thgt
Payne Clark were in dificulties, and said they
must be assisted. said we ought to assist Payne
&c Clark. Mr. Herbert Smith said Payne & Clark
would stop unless assisted by fhefs. and nsegf
fHerbert Smith Il Coy would stop nniers assisted 4.
by u.s." And if " Herbert Smith & Co. stopped ID
would then go hard with Messrs streatfeiid. Iau.
renee Mortimore. The several links in the chain i
are all connected together, and If the enemy IN
kept ont at one end y fs security to tfe other.
Herbert Smith said, You shall NOT lose shilling
by me- That Is 20 be the ultimate effect 81 this
train Of supports-Payne Il Clark leaning on Her
bert smith Co., and Herbert Smith II Co. or
StfeatiaeId Laurence Mortimofe. All this is in
the race Of positive insolvency, believed at the time
to be the condition OF the ts assisted " uarty
believed Herbert Smith Il Co. to be jnsolyent
| apart from the mine.
/ did not know the amount of liability OF Payne
& Clark to Herbert Smith. do NOT know tl1at
have inquired Twas satisfied with Herbert Smiths
assurance that we should not loose a shilling by
him" The bankrnpts themselves have the benefit
| of the same system when their own case becomes
imminent. " went to Mr.. Chapman's private resi-
denee and said that we could not get on, and that
we should require some assistance. He said, OH
| yoH must not stOp.in sum OF 100000 was lent
Immediately to prevent this dire necessity, with
prospect Of more, but, even when this 10000 is
got, 90 900 Of it forthwith goes to prevent Herbert
Smith & Co. g stopping.
i Herbert Smith asked for the e. 0G0: that was
the reason of my paying it to him.
Mr.. Linklater-Did you or did you not give it
to him to prevent his stopping2
The Bankrupt gave il TO him to provide for
bills Of his falling due on the following tay.
:" Mr.. Linklater-Answer my question. Yes or
No?
!" The Bankrupt gave it to him to prevent his
, stopping.''
And so the case goes on. Smith, Patient g.
Smith, are another creditor. & In March or April
did not think should lose Ei0s, 900 by Smith &
Patient-perhaps 10000 or 10000. | still con-
timed discounting their bis--perhaps to the
' amount OF one-third of their debt to u.s. Thus,
4 the debt Of this firm to the bankrupt firm grows
, from 100000 to .000 within the space of few
n months of the hankruptcy-al, of course, allowed
to be contracted on the principle that they could
not afford to stop this accumulation of debt; for
J. what, then, woud become of Smith, Patient &
i Coz" 1t is obvious that any continuation Of deal
be in slippery condition is of the nature Of Ioar
Ii did large trade in the United States and In orde
to be able to get goods the best terms We CAV,
y him our acceptances. We did not often look int,
'r the account, we thought it always safe.' A deb
u of f25 900 thus figures in the bankrupts balance
. sheet as due from Rider, on the ground of thes
= accommodation aeceptances; g Whereas say
~ Mr.. Linklater, this IS obviously sham debt
ID AS a matter Of bookkeeping, and for the sake O
" convenience, the bankrupts might debit Rider viii
% their aceeptances at the time they were given 4
but when the account dealt with in court thes
y acceptances could not possibly figure as a debt
u because they had only been liability contrasted
M and never 80 much actual money lent to anothe
u | party.