The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-03-31
the BLOCKADE BREAKING BANKRUPT.

Inc bLUCkAUe BREAKING BANKRUPT
~~~~~~~~~~~~~~~~~-~-
q. o. Pearson, or Hail, Again In COURT
Loss OF Ons Hundred Thousand Pou IA
Sterling ~ sAe nerrimse bloc ads
Runncr-Is Blockade Breaking . Crlme ]
In the Eye 81 the Lawt
COURT OF BANKRUPTCY. LONDON. MARCH IL.
Before Mr.. Commissioner Goulburn.
IN Re e. G. Pearson.-rhe hearing Of this wao
resumed by adjournment from Saturday last
Mr.. c. 4. Lewis in addressing the Court behalf oa
the bankrupt dve the fact that the assgnees who
represented ds creditors for f27 O00 had not op
posed and that the debts OF the opposing creditors due
directly from the bankrupt less than IS 00O Re-
ferrng to the contradiction between the bankrupt and
Mr. Brodrick he contended that that did not affect tho
merits Of the case, but only important affecting
Mr. Pearson character. There In reality
a variance between the evidence Of the bankrupt and
that OF Mr.. Pease. It possible the bankrupt might
be mistaken as to something that passed but
where different statements made az TO a
saton years ago not necessary 10 mpuse per-
jury either side or the other. II this done
there scarcely tried in which one or the par
ties would have to walk Of court with the mpu
taton OF perjury. In regard to the transaction with
Brodrick, tho bankrupt's statement confirmed by
that OF his clerk and all the facts favor or that
statement being correct II was admitted by BrodricS
4
warrants given. and the whole OF the circum =
stances under which the bill obtained showed that
m e yeas h h ne laa see U
gentlemen then referred to the charges preferred
against the bankrupt under the penal clauses, and
hrs dealt with the charge OF trading fictitious capital
He denied that the bankrupt had acted contrary the
Queens proclamation which merely warned shipownera
that thew attempted TO run the blockade they would
not have the assistance Of English cruisers in getting back
their goods. ne bankrupt had sent out in the Herrnac
cargo looh el30 000 and bu This he Io f00 600 o'vg 10
The hIcy 0ccufrno and the contract not being
pleted He had merely been engaged in transac.
tons in which many others had engaged, and
oven the underwriters at Lloyd's, oho insured
has cnrgoes for fifteen per cent. were equally guilty
OF rash and hazardous speculation That was OF
itself complete answer to the charge bearing id
mind the definition OF the Lord Chancellor that rash
and hazardous was such as no man
would eugage in He commended that the proclaim ltion of
President Lincoln was nothing but trap and snare It
ought 70 oe warning 70 every one not only to put no faith
ting presidents Of tho United states Owing TO The crcun
stances under which the hankrupts vessels had been
seized the assgnees had c1imed restitution OF them
and had Obtained back; whether the rest would be
obtained those who lived to the end OF this century
might perhars know He denounced the proclamation
OF April 1861. artifce by which II was sought
10 entrap merchant vessels get possession OF them
Mr.. Lewis stated that, it had been followed up
by the capture OF every vessel without warn
Ing although the proclamation had been en-
larged annued and remained OF perndy on
the part or the American government. il had been
Ioctqd ors more nan paper tokade this opinion had
been expressed in Parliament, and Mr. Pearson was
IL.
oovfnme1a probably with view TO preserve peace,
this blockade could lasted hour supported
i was by lew wreched cruisers from the navy yard
Norfolk. Assuming that Mr.. Pearson justified il
relying on the proclamation OF the Presdenttbat every
vessel should have warnnrhe had the same right to
ship goods to the southern ports to either Melbourne
or Canterbury In this expectation he had right to 60
into the market
Tho Commssioncr--Rut, do You say that breaking q
blockade s not malnm prohbitum or nahum per sc?
Mr. Lewis--cersainly rot.
The Commissioned think the civilians will ter you
differently
Mr. Lewis said the &C. certainly not nahum pro.
hbitum nahum per Sc, regarded neutras II could
no, be brought within tho Foreisr Enlistment act.
Tho Comm.ssioner-Well, | don't think the case turno
upon that.
Mr. Lewis then referred the cases OF "Rarnard and
R,sentha and exp. iownman," as illustrating the
Lord Chanceors view OF what should be considered rash
and hazardous speculation He contended that there
no analogy between Mr. Pears n operations and SNUG
Cling The latter was Illegal according TO our law; tho
former sanctioned by the reasonable men" Of
Loyde and the Marine insurance companies The third
charge that Of contracting debts without probable
The coninssInDer-r shall relieve you from the fourth
charee-thit OF extravaaant expenditure. don't thns
the insolvency is attributable 10 that.
Mr. Lewis submitted that there proof OF any one
debt being contracted ia the described. II true
ne; e mad a given check shortly before ns pe
f.rtbing upon IT, II w:s to b. observed that the debt
directly be only liable to them Briggs bills and
bat for Briggs insolvency that liability would have
been incurred without ofpayment for that debt
been incurred ia April and after that period the BANK
rrp had nad into his bankers $500 600 made
the difference between patriot ard rebel and Mr. Pear
son, after being congratulated In the streets OF Hull BY
fone Of hs onrosiny creditors the supposed
cess ~ the Ststtn in running the blockade. now
arragrei by the s,me ~ this court and told tia
be was delinquent Spectator Reference had been mad
10 the bankrnpt's sham llberay In giving 81 900
chapel he had done this at time when no know
ingv irEOvent, aud out Of other peoples money, he
would nave been hypocrite, not merely q sham liberal
Bot there a wide difference between such q case a6
hat OF The bankrupt The greater o. the donation
ferred 70 made in 1859 and 1850, and only f3o0
the beginning Of 1892 the subscription having bcen Who'll
ly promised in 1852 and Il was 10 evidence that Che
bankrupt In 1858 had surplus Of clio 900. His actu
expenditure 10 his household four years had beei
81 500 year. during which time he had given AVA
81 200 IN subscriptions. ESQ OF which had been paid
during year Of his mnyoralty. aud 1850 for public
FOR property which had been given up 20 the
assgnees and constituted mart OF tho asscts. in
Guiding statue Of her Majesty. lilo had given twenty
seven of land for public park: but this hst
improved the remainder OF hrs property thai
the ground for the park had cost him no
thing. II remarkable fact that while tho
debts OF the bankrupt so large-upcdros NJ hal
a miliiorcredtors for only very small amount com
paraively had forward 10 oppose. There could ~
no doubt that those creditors thoroughly knew wholT
they trusting and tho kind Of trade the bankrupt
20 make charges against him. The Court had deal WITH
the case % man in which there not particle q
evidence Of fraud notwithstanding the gigantic nature
his transactions Tie had been eighteen months befor
the and had surely suffered enough any impru
deoce of which he might have been guilty. (some ap
pause followed the delivery Of this address.)
His Honor after remarking the ability OF Mr. Lewis