The New York herald., 1868-06-26
Making total Of property in hands Of re.

Ex Nautilus, Duncan. Sherman a. Co... 3s,645 90
Ex Leonore Brown Bros. Co.. ........ 1882 IL
Making total Of property in hands of re-
The Aggregate is s41s,oi5 IS; the items going to
make up the aggregate do not include the Fifth ave.
property and only the S. 800 private property of
private property beyond the SIS 92s "a given: can
not give the items going to make up the private pro-
perty OF Mr. sparkman, ana % nave no memory upon n1
estate In New York and Williamsburg; l do
not know what his private property was; in
about half million we took into account
the Pence property on Fifth avenue, held
making up the conclusion that the estate should pay
fifty cents on the dollar we took into consideration
what the Fifth avenue property was held by Mr..
Place; we did not take into consideration the amount
OF private property owned by Mr.. Sparkman; we
never had any conference with Mr.. Sparkman on the
subject IL we had known that Mr.. Sparkman's pro-
perty was worth half million dollars it certainly
would have influenced our minds In determining the
amount that should be paid to the creditors to the
extent that his private estate appeared to be worth;
If it appeared to us that he had an estate OF half
million dollars in addition to the Steps o. instead
of reporting that they should pay about
half million we would have reported that
they should pay about q million; we never
made any investigation to ascertain whether Mr..
Place had any private estate outside Of his partner
ship aiairs Mr. Place never said anything upon that
subject; we never made any investigation to as cer
tain the condition OF Mr.. Places private affairs;
never made investigation into the private affairs
OF Mr.. Sparkman he stood Oh the 10th Of August,
at that date.
Q. You stated in your report that upon opening
the books it appeared that the capital of the firm
was $500, ,0O0 and that Mr.. Place was charged with
100000 and you make some insnuatiOn In your
report that il would seem as though that entry may
have been made to give fictitious credit TO the firm,
or a fictitious idea as to the capital. Are you IA
miliar with bookkeepingS A. am.
q. Is It q strange thing to find an entry of that
kind in booksf A. consider it Is stranger if 1t is
entered 1t seen by the clerks: Mr.. Place did not
pay interest upon the amount that had not been paid
In IN rnnt1 intnr ha hat
equivalent 10 the purpOrted capital; have been in
Brown Brothers Co.'s establishment sixteen years.
At this stage Of the proceedings Mr.. Shaffer put
several questions relative to the routine of
houses, the answers to which do not seem TO have
u very material bearing upon the case
O. What do you mean by this entry in your re-
port:-"This entry must have been made to give an
idea that the capital was $sOO0oO.n To give the
idea to whom? A. To anybody who looked at the
entry 1t would give that idea TO anybody who
looked at the entry; did not mean to convey the
idea that the entry was fraudulent or dishonest.
Mr.. whitney here examined the witness-The
paper have produced is in the handwriting Of Mr..
Burritt, or man that he employed; in speaking OF
the payment OF interest by the respective partners,
do not contemplate the payment OF interest to third
persons, OF whom this deficiency in capital was Dor
pTyiua narper the nares TO The II rm 1re
and 10 all entries to that effect being made In the
books; that being the case 1t would make no es-
senal difference as to the facts as to the capital on
hand.
To Mr.. shaGer-There was an interest account; if
they borrowed money the interest was charged 10
the interest account; If they got discount there
was an interest account; 1t appeared In
the interest account; each one paid interest
upon the amount OF capital paid In and the amount
not paid in; In the end Mr.. Place would pay in
terest on the sum he had not paid in; so with Mr..
Sparkman; the difference would be between having
II In bank 20 their credit and borrowing and paying
interest on IL; Mr.. Place would pay interest on the
5000 900 that he had borrowed and Mr.. Sparkman on
O. Then Mr.. Place would pay interest on the
amount he had paid ins A. Yes.
U. And Mr. SparkInan would pay interest on
100000, less the amount he had paid ins A. In Mr.
Sparkman's account Il was the other way.
In answer TO queries by Mr.. whitney the witness
stated that n the amount borrowed represented the
capital and whether IL interest not, the loss
result would be the same
Another hearing took place on the nth OF June,
when
Jonn f.. Johnson was recalled by Mr.. shafer and
testihed-i have made no efforts 10 ascertain the
liabilities OF J. X. Place Co. on the LIST January,
ls6I cannot state the assets and liabilities OF the
nrm on ,me isa S January separately cannot give the
state the losses they sustained from January 1867
to August 10 Of the same year, beyond what has
losses were sustained within that period; made no
investigation TO ascertain whether losses had
dates mentioned: nv p pimpres.ion is that losses
were made; think their business during
this period-from January to November 20 ise7-
involved one or two millions-possibly more than
that we made no investigation as 70 the character
Of the purchases and sales from August 10 TO Novem
Der 20, 1867; we observed no difference In the pur
chases and sales during those periods.
The witness was examined At considerable length
BY Messr.. whitney, shaaer and knthon, but no
important facts were elected
The further hearing In the case was ended before
Justice Iedwh on the 18th inst. when the Court and
Mr.. ShafYer counsel for defendant, being absent,
Mr.. Shefneld. one Of the assignees OF James X.
Pace Co., under the voluntary assignment, ap.
peared and produced two ledgers and one journal OF
James x. Pace Co. for periods subsequent TO De-
cember 81, 1885, and the complananrs counsel put
the same In as evidence the defendant reservinR the
right TO move TO strike out or to object as TO Their
Introduction In evidence.
Mr.. shafrer also produces, in pursuance Of sub.
pGna, copy OF said voluntary assignment, with
the schedule annexed, which the complainant voun-
tary introduced In evidence, as TO which introduc.
ton In evidence the defendant reserved the sane
right that he did "a TO the books just Introduced.
The complainant also Offers In evidence the original
bankruptcy petition and schedule on fle with John
Fitch register, to which the defendant reserves the
came right 10 strike out and object
The defendant admitted that the two iedgers and
the journal produced are The referred to In the
report OF The commitie OF investigation, mentioned
aud referred TO In the testimony OF the witness John
son.
Mr.. whitney stated that N these books and papers
nrp received In evidence 40 Court the cOmplatn-