9th February 1891
Reference Numbert18910209-222
VerdictGuilty > unknown
SentenceNo Punishment > sentence respited

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222. LAZARUS ABRAHAMS (33) was indicted (with Abraham Julius, who Pleaded Guilty last Session) for, that he being adjudged bankrupt, did not deliver up all his property to his trustee.


CHARLES L'ENFANT . I am an officer of the London Court of Bankruptcy—I produce the file of proceedings in the defendant's bankruptcy—the petition was filed on August 7th; it was his own petition; it describes him as a furrier, of Great Prescott Street—the liabilities are £14,911 6s. 6d., and the assets £1,062 3s. 6d.—on 28th August Mr. Joseph Politza was appointed trustee—on 29th September Mr. Registrar Link-later made an order to prosecute—he filed his accounts on 29th January, and his first public examination was on September 16th—he was further examined at his own request quite recently.

Cross-examined. The secured creditors are £1,242 13s. 1d., and liabilities, as per list B, £6,018 7s. 5d.—list D gives the names of persons for whom the bankrupt alleges that he is liable—the deficiency account is made up, among other items, of expenses for sales, etc., £400; the lawsuit with Mr. Devas; £1,300 worth of goods carried out at £1,000 loss; and the withdrawal of £1,000 lent by the bankers to his father in January, 1890; and there is the repayment to the party who lent him that sum—the item paid on account of Julius Abraham, £819 7s. 11d., is on another sheet; loss in business, August, 1889, to August, 1890,

£862—the cash account was filed on 29th January, and another on February 12th, by order of the Court—that is on the file; it purports to be a full statement of the receipts and payments from the bankrupt's business from August 7th, 1889, to August, 1890, which is divided into months, and is composed of about twelve sheets.

GEORGE BLAGROVE SNELL . I am official shorthand-writer to the Court of Bankruptcy—I produce the notes I took in this case; the transcript is on the file.

SOLOMON COHEN . I am a furrier, of South Street, Finsbury—this is my ledger—I find in it that on June 12th last year I purchased some sealskins, here set out, from the prisoner, to the amount of £214—they are described as 90 lobers dyed extra small puffs—puffs are small skins—they are invoiced at 30s., coming to £39 10s.—22 Copper Island dyed at 65s., and two other skins, total £214—I paid for them by this bill for £139 (produced)—I bank at the City Bank, Aldgate, the same bank as the prisoner—I was debited in my account with the amount of that bill, and the balance was paid for by a cheque for £74 10s., payable to Abrahams, and endorsed by him—it has passed through my account—the prisoner came and asked me to buy those goods—I purchased from him, on 26th June at his request, 236 grey puffs at 26s., making £316, or £300 with discount, and gave him the open cheque which, is endorsed by him—it has passed through my account—he asked me for an open cheque—on July 3rd I purchased 64 dyed seal Coppers at 65s., £208, which with discount was reduced to £202 16s.—this is the open cheque for it endorsed by the prisoner, and passed through my account and paid—on 4th July I bought from him 42 Cape skins at 42s. net, £96 12s., and paid with this open cheque, which is endorsed by him—on 7th July I bought of him 48 Copper skins, £180, which with discount came to £178, and 109 white coats at 8s., making £43 12s., and I had to pay a Consul's fee for an affidavit—I sent a crossed cheque by post for £221 12s. which Abrahams gave back to me, and I put on it "Pay cash" at his request—just before 12th July, I bought of him twenty dyed seal Coppers, at 75s., making £75 ditto at 65s. £26; £101 in all—I had not paid for them when he filed his petition, and under advice I have not done so since—on 26th July I purchased goods of him for £48 3s., which I have paid for since his bankruptcy.

Cross-examined. I bought at market prices—I exported a large majority of these skins to New York, and had very serious complaints of two lots, and when they were sold, one lot was sold to me at a loss of 550 dols., and they were dissatisfied' with the lobers—the grey puffs went next, and I had the complaint that they were "a very poor lot, full of shot holes and spear holes, too bad to offer here, and too small to offer by auction"—they said, "We should hesitate about buying them at 16s., and the same with the last lot of lobers, and we think 248. will be enough for them"—I also forwarded some of the sealskins to America, but had no complaints of those; there were only two complaints out of four transactions—I got some Alaskas from the prisoner—there might be a slight complaint of some of them—on 17th July I had a telegram, "The small seals are entirely too high; buy no more seals"—there was not a complaint from my customer in New York about all the things I sent.

Re-examined. I shipped the articles to New York for sale in the market;

some of them were sold at a profit—they were never made up—I had frequently bought of the prisoner before.

WILLIAM COLEGATE . I am book-keeper to Blundell Brothers, of 157, Cheapside—these invoices relate to goods sold to the prisoner on July 11th; I gave him this open cheque the same day for £120 12s.—the invoices make up that amount—he signed the statement W. C. 2 in my presence—on June 27th we purchased goods from him amounting to £33 158., and on July 4th, £41 5s., making £120 13s., and paid him by cheque—we did not pay him any cheque for £69 16s. in 1890.

Cross-examined. He occasionally invoiced a larger quantity of goods than we could accept, and we returned the difference—we had dealings with him for some ten years before July 11th—he was in a fair way of business—he came to me and said that he wanted money to pay his workmen.

EDWARD HAYNES . I am cashier to Munt, Brown, and Co, of Wood Street—on 11th July we paid the prisoner this cheque for £147 2s. for goods supplied by him—it is crossed, but has been altered into "Pay cash" at his request—he gave no reason for that—it was given for goods of which this is the invoice, after giving credit for some small returns—the receipt purports to be signed by Abrahams—I cannot remember seeing him sign it—I never paid a cheque for £47 14s. in respect of that transaction—the goods were supplied between May 6th and July 9th.

BENJAMIN MARCHANTON . I am clerk to Messrs. Brookfield and Aicheson, of Manchester—the defendant has had large transactions with them for some years—on 23rd July we remitted to him a cheque for £160 9s. for goods we had purchased—attached to it is an invoice of manufactured capes, which were given for it—we never made him any payment of £1 9s. 3d. in respect of those goods.

Cross-examined. He is a very respectable man for anything I know to the contrary.

CHARLES DENT . I am clerk to Larkins, Gibson, and Co., 20, Moseley Street, Manchester—I produce two invoices, dated 4th and 11th July, for £34 2s. 6d. for fur capes supplied to us by the prisoner; we paid for them on 24th July by this cheque on the London and Westminster Bank for £65 7s. 6d. sent by post—it has on the back, "L. Abrahams" and "Chas. Woolrouch"—it was crossed—this is the prisoner's receipt.

ARCHIBALD ROUSE . I am in the employ of Holmes, Terry, and Co., of Manchester—I produce a cheque for £14 16s., signed by Mr. Terry, payable to Lazarus Abrahams, and posted to him on 7th August—it came back afterwards, purporting to be endorsed by him—the receipts dated August 9th.

GEORGE THOMAS FORTON . I am cashier to S. and J. Watts and Co., of Manchester—they purchased goods of the prisoner last year and paid for them by these two cheques of July 16th and 19th for £12 19s. 9d. and £22 19s. (produced)—they are drawn by Mr. Watts; Lazarus Abrahams name is not on them; our custom is only to put the folio of the ledger—they bear the stamp of the London and County Bank, Shoreditch.

CHARLES WALWORK . I am cashier to Nelson and Co., of Manchester—I produce a cheque for £10 2s., dated 12th July, drawn by Mr. Nelson and given to the prisoner for goods purchased by him—it bears the stamp of the London and County Bank, Shoreditch Branch.

ROBERT ALLISON . I am ledger clerk to Spreckley, White and Lewis—I

produce a cheque for £39 11s., dated 24th July, drawn by Mr. Lewis in favour of the prisoner—it purports to be endorsed by him—it is also endorsed "Charles Woolrouch" and it is for goods purchased by our firm—it bears the stamp of the London and Westminster Bank, Eastern Branch.

JOSHUA GASNER . I am a furrier, of 30, Commercial Road, East—this cheque for £200, dated 17th July, was drawn by the prisoner in my favour, and is endorsed by me—it is an open cheque—I have done business with the prisoner for eight or ten years; he simply put down a cheque and said, "Endorse me that cheque"—I asked him the reason—he said, "I ask you to do me that little favour"—it was not written then, it was perfectly blank—I did not see him fill it up afterwards, but I know his writing; it is filled up by him—I never received any portion of the proceeds of it—I cannot swear to the date, but it must have been in July—I only did that for him once—I went there to buy some cuttings—I asked him the reason—he said, "I ask you to do it; you ought not to ask me any questions. "

ROBERT HENRY HAMMOND . I am a ledger-keeper at the Aldgate Branch of the City Bank—I produce a certified extract of the prisoner's account from the books of the bank—I have compared it with the books; it is my own writing. (The certificate teas here put in)—one entry relates to Cohen's account, and one to Abrahams'—Cohen's is for £300 paid over the counter in gold—this cheque, dated July 4th, for £202 16s., is Mr. Cohen's; it was paid all in gold—this cheque for £96, dated 5th July, is Mr. Cohen's, and was paid in gold—I know the prisoner's writing; this is his endorsement—this cheque of 7th July, for £221 12s., was paid on the 9th by us in gold and silver; it is endorsed by the prisoner—this is an acceptance of Cohen's, of 12th July, for £179; it was paid with a £5 note, 20,909, three £10 notes, 49,952 to 49,954, and one £100 note, 56,531, and the balance £4 in cash—this is the defendant's open cheque for £200, payable to the order of J. Gasner, and purports to be endorsed by him; it was paid with two £100 notes, 60,006 and 60,007, August 13th, 1889—after June 11th there was a payment into the prisoner's account of £50 on 2nd July, and £500 in a lump on 24th July—we paid this acceptance for £490 to the prisoner all in notes, one £200 note, 08,397, two £100 notes, 67,577 and 67,578, one £50 note, 22,318, and two £5 notes—the acceptor was Israelovitch—I do not know him.

Cross-examined. The entries to the customer's credit in this pass-book are in the writing of the employés of the bank; I know the writing—£85 3s. was paid in on July 3rd; that was made up of sundry cheques—there are only two payments in of cash in July. (Several entries of payments of gold in July were put in)—Israelovitch's acceptance, £490, is debited to the account in July.

Re-examined. £1,050 was payments in cheques as distinguished from gold and silver.

CHARLES JOHN WILLIAMS . I am bank-note inspector at the Bank of England—I produce a £5 note, 20,909, February 11th, 1890, which was paid in on August 1st to the account of Mr. Raffaelli—the three £10 notes, 49,952, 53 and 54, are still outstanding, and so is the £200 note, 08,937 of January 1st, 1890—I produce a £100 note, 69,557, dated 13th August, 1889, paid in on 15th November by the Central Bank Head Office—it bears the stamp "Central, Whitechapel"

—the £100 note, 69,578, is still outstanding—I produce a £50 note 22,319, dated 13th September, 1889, paid in on 28th July, 1890, in exchange for a post bill—the £20 note, 02,514, January 4th, 1890, paid in on 25th. July, 1890, to the account of Ralph Raffaelli, is still outstanding, and so are the two £100 notes, 60,006 and 7, of 13th August, 1889.

Cross-examined. Notes are sometimes many years in circulation—the average life of a £5 note is about a week.

GEORGE WILLIAM ROSE . I am cashier to Bailey, Bruce, and Co., bankers—this cheque for £120 13s. is drawn by Blundell Brothers in favour of Lazarus Abrahams—I handed the money across the counter in gold and silver—I cannot say who to—it bears the endorsement of Lazarus Abrahams—I also paid this cheque for £12 3s. in cash over the counter on 24th July—it is endorsed "L. Abrahams. "

FRANCIS MALLION . I am a cashier at the Princes Street Branch of the London Joint Stock Bank—this cheque for £147 2s. is drawn by Munt, Brown, and Company, and dated July 11th, 1890; I cashed it, and gave £140 in gold and £7 2s. in silver; it is endorsed "L. Abrahams"—this cheque of July 24th, 1890, for £39 11s. is drawn by Spreckley, White, and Lewis; it was paid through the Bankers' Clearing House—it is endorsed, "L. Abrahams" and "Chas. Woolrouch. "

MR. HANSE. I am a bill clerk in the London and County Bank, Shoreditch Branch—this cheque for £12 18s. 9d., dated July 16th, 1890, was paid through the Clearing House, and credited to the customer who paid it in, Joshua Gasner—this other cheque for £22 19s., of July 19th, 1890, was also paid through the Clearing House, and credited to Joshua Gasner—they are drawn by Watts and endorsed "L. Abrahams"—they are payable to a number—this cheque for £15 2s. 9d. was cleared through the Clearing House; it is drawn by Hugh Davis and Company in favour of L. Abrahams, and is endorsed "L. Abrahams"—it was placed to the credit of Joshua Gasner—the cheque for £10 2s. is dated July 10th, 1890, drawn by C. Nelson in favour of L. Abrahams, and placed to the credit of Joshua Gasner.

JACOB HARRIS . I was traveller to Abraham Julius, the prisoner's brother, up to August last—I received these two cheques for £91 15s. and £64 12s., one from Thomas Jones and the other from Barrow and Kendal, of Liverpool, on behalf of my employer, and handed the prisoner the £64 12s. cheque on Sunday morning, 20th July, and the £91 15s. one, on the Tuesday following—the wages at Julius' were paid every Friday evening; the money came from Mr. Darnell, of Kingsland Road, by cheque—he is one of Mr. Julius' customers, and I cashed the cheque every Friday at Mr. Darnell's bank, but these two particular ones I handed to Mr. Abrahams.

Cross-examined. I collected these two cheques with Mr. Julius' authority—he knew of my having the £64 cheque—I did not get possession of it unknown to him, nor did Mr. Lazarus insist that I should give it to him, that he should give it to his brother—I was sent for it—I was not found out by the prisoner, nor did I hand it back to him that lie might restore it—I did not go for the £91 cheque, I took it to Mr. James at Mr. Julius' order—Mr. James did not ask that it should be made to bearer, nor did I ask him—I do not know that it was stopped—Mr. Julius directed me to write to Messrs. Barrow and Kendal for the

second cheque, on one of his own billheads, and I asked them to send it to my private house, which was done, and I opened the letter—Mr. Lazarus did not come to me and demand the cheque—I was charged with the theft of a horse and cart; I do not know the date—the prosecutor was supposed to be Israelovitch; it was investigated and dismissed, and after that I came forward—I have an uncle named Solomons; he is a creditor of the prisoners for, I believe, £300—I did not say that if he would pay the debt in full my feeling would be friendly towards him; I never spoke to him nor did I say that if not I would do all I possibly could against him—I do not remember taking any of Mr. Julius' goods—I did not have them packed up and removed—several Solomons were employed by Mr. Abrahams, and probably Abraham Solomons was one—I do not recollect telling him to pack up some things belonging to my master or to make my people some boots, nor did he make them up and give them to me; nor did I tell him not to say anything about it, for if he did I would manage him—I might know him if I saw him—Aaron Green is one of the finishers on the premises—I used not to take stock received from Solomon to him to finish during the holidays—that is Green (pointing)—he used to make stuff up under my instructions, but I did not give it to him to finish—I put my name on Barrow's cheque—I have endorsed Mr. Julius' cheques ever since I went there—I cannot say whether it was stopped—this one is endorsed in Mr. Julius' own writing, and not also by me—it was exchanged for another, to my knowledge, that was to the order of Mr. Julius, and endorsed by me (for £64 12s.); they said it was not Mr. Julius' signature, and it was my signature; the boy said, "Father says go and get another cheque"; his son was in the shop when I went for the cheque—I cannot say why Julius did not endorse the first cheque—I was never charged by Julius with robbing him, I was never taken to the station.

Re-examined. I was the principal witness against Julius for defrauding his creditors and committing perjury; he pleaded guilty to all those matters last Sessions—he was taken in custody about that time—it was a few days before that that I was charged with stealing a horse and cart; it was investigated by Mr. Montagu Williams, and I was discharged.

ROBERT REEVES . I am ledger-keeper at the Eastern Branch of the London and Westminster Bank—this cheque for £160 9s., of 23rd July drawn by Brookfield and Aicheson in favour of L. Abrahams, and endorsed L. Abrahams and Charles Woolrouch, went to the credit of Charles Woolrouch, and so did this cheque of 24th July, 1890, for £39 11s., drawn by Spreckley, White, and Lewis in favour of L. Abrahams, and endorsed L. Abrahams and Charles Woolrouch.

ALFRED LANE PEARCE . I am a clerk in the Chief Official Receiver's office—I produce the file of proceedings in this matter—on 2nd September I examined the prisoner, and obtained answers from him to certain printed questions—he read them over and signed his answers—this is the prisoner's pass book; I made these pencil notes on the last page on the debit side during the examination, and afterwards made a report—he said that the £200 on 17th July was for goods purchased from Gasner in 1889, and that the £490 to Israelovitch was a bill for money lent about Christmas, 1889.

ALFRED BEVIS . I am a chartered accountant, of Broad Street Avenue—

I was employed by the trustee to investigate the prisoner's books and papers, and made a careful investigation of them from January, 1890, to August 7th—during 1890 he incurred debts for goods supplied to him on credit amounting to about £7,496 17s., and by reference to his banker's book I found that he paid for goods purchased about £490 9s. 11d.—that would make the total purchases roughly about £8,000—his sales during that period amounted to £4,700, out of which £890 16s. 2d. worth of goods were returned to him, leaving the net sales about £3,800. (The witness went through a long analysis of the prisoner's accounts.)

Cross-examined. I never heard of the account of February 12th till I came into Court to-day; I was not aware that it was on the file—I came to the conclusion that there had been very bad book-keeping, and that there were incorrect entries in the books—there are two entries in the ledger which are not to be found in the day-book, and which do not agree with the documents handed to me for verification—I have a summary of the whole matter here—my notes were marked as an exhibit in the case—there are occasional entries of amounts in the ledger, where there are no dates attached, and in many instances not balanced—there are credits in the ledger which when I came to trace them in the pass-book when the amounts agreed the dates did not, and they are amounts as large as £200, £140, £50, and £500—having investigated the books, I am unable to say whether the payments are largely in excess of the receipts, though I endeavoured to do so—according to the ledger the cash received between January and July was £3,030 4s. 3d., and not £3,330—the returnsare £3,042 7s. 3d., as shown by the ledger—the books show up to November 14th receipts about £9,894 1s. 1d., and payments about £10,131 1s. 5d., but I have not the figures before me—my memory servos me that I gave that on the amount paid into the banker's account, and drawn out—assuming those figures to be correct, that would leave payments over receipts of about £200—I cannot say that it was £100, but there was a large amount received which did not appear in the ledger—according to the banker's pass book there was an excess of payments over receipts—I had considered the. question of the wages which he would have to pay away; the cheques drawn in the name of Abrahams were sufficient in my mind to be cheques for wages; they amounted to £1,000 in six months, and I suppose that represented the prisoner's drawings and for wages—there was no item before me professing to represent what he paid away for wages—I saw papers stating that he drew £400 a year for his household expenses—I found a small memorandum-book of paid work amounting to twenty shillings a week—I do not know that he employed eight cutters when he was very busy, or thirty to forty sewers, or two nailers, or four machinists—there is no item carried out with reference to the payment of wages, unless it is under the head of "Drawn by Abrahams"—there was no bill-book, but there was a book in which I discovered one or two entries relating to bills—I have discovered a book since November, in which a grew number of transactions are entered connected with bills—I have not examined the books, because I examined the bills, which I think safer—I do not think any examination of that book would make matters clearer—I should be sorry to prejudice the prisoner, as I do not think it would

have helped me—when I was examined on the 10th and 20th November I said that the receipts were £11,715 11s. 5d., as against disbursements £10,334 0s. 10d.—there was no item for wages or household expenses, both are included in "Abrahams"'—on February 2nd an accountant, on behalf of the prisoner, had made out an account—I had notes of my own figures—I made the balance £197 by the banker's pass-book.

Re-examined. The prisoner filed a statement of affairs, which I had before I was examined before the Magistrates; it was filed on August 20th—he was advised by the Registrar to file a cash account for the twelve months preceding his bankruptcy, but I never saw it—I heard that he had filed one on the eve of his prosecution—in the account showing that at the least he had to account for £1,200 received by him in July, I gave him credit for £300 wages which were in his account—I entirely accepted that and the other figures which I had no vouchers for—these bills, in my opinion, will not at all account for the bank notes and gold which seem to have disappeared—there is about £14,000 received by him and not accounted for by his books or paid into his account—the figures I gave Mr. Kisch before the Magistrate referred to the pass-book, showing that the disbursements exceeded the receipts—several bills have no dates in the books, but on one page I see August, 1887—forty-two bills are entered after 1887. (The shorthand transcript of the prisoner's examination in bankruptcy was here put in and extracts read.)

DAVID S. DAVIS . I am one of the firm of Fenn, Davis, and Company—this cheque for £ 15 2s. 9d. was drawn by our cashier and signed by me—it is payable to L. Abrahams, and bears his endorsement, and no other.

JOHN EDWARD REMMINGTON . I am a leather merchant, of Exchange Buildings, Market Street—prior to January, 1890, I had sold leather to Abraham Julius, the prisoner's brother—I had a conversation with him in December, after which I saw the prisoner and asked him if it was a fact that his brother had made £300 profit on his business that year—he said that it was so, and he was in the habit of going through his brother's books every week—after that I increased the credit to Julius—the prisoner said, "I will accept for all the purchases my brother makes of you, put him on the very best footing you can, it is as good as trusting me," or words to that effect—he sent me a letter stating, "I agree to accept for my brother Julius what he may purchase"—I sold goods to Julius down to July 11th, and received these eleven bills (produced) in payment, amounting to £1,200, which were accepted by Lazarus—I received this document from Lazarus, because I desired it: "April 14th, 1890: I accept the entire responsibility of all acceptances which my brother Julius draws on me and hands to you"—prior to January, 1890, I had not supplied one-third of the goods which I did subsequently; I increased the supply in consequence of the conversation I had with Mr. Abrahams at my place in January, prior to the first letter

Cross-examined. I had two guarantees from the prisoner prior to January, 1890, the first in January, 1888, and the second six or eight months afterwards—I supplied a considerable quantity of goods between the first and second guarantees—I have been paid hundreds and hundreds of pounds by each of them—I was always prepared to give him credit to a certain amount—those large payments extended over a long period

that was not one of the reasons which induced me to give him increased credit.

Re examined. The credit I give him one year was £450.

WILLIAM CHARLES SMAILE . I carry on business with Mr. Peach, at 7A, Gloucester Street, City—we supplied the prisoner with goods prior to July last year, and about £400 was owing to us in July—I communicated with the prisoner, and he called on me on June 17th and July 8th—I told him the account was larger than it had ever been before, and I wanted to know his position—he said, "I have never been so busy as I am now, or doing so well; I have very large orders from wholesale houses, and will pay you next month the whole amount as soon as I can get the goods delivered"; that was £300 or £400—he begged me not to stop his credit, and said that he was perfectly solvent; and I lot him buy further goods to the amount of just over £90; I would not have done so if it had not been for his absolute certainty about his position.

Cross-examined. I have done business with him not quite four years, to the extent of £1,500 or £1,600—he paid all that he owed me, except for the goods he had this year—my debt in this bankruptcy is about £450—I did not write him a letter saying that I had a cheap parcel of goods; my traveller may have called on him from time to time, and done his best to sell goods—the conversation was in July, 1893, in consequence of a letter I wrote to him saying that his account was heavier than it had ever been before, and requesting him to come and answer some questions—I did not have a specially cheap parcel of goods—I heard the evidence at the Police-court, but I have given evidence to-day for the first time—I am not mixing up anything which I heard the witnesses say; I made an affidavit many months ago when I tried to make the man a bankrupt—I did not succeed, because you got Justin front of us by ten minutes—MESSRS. Pritchard and Englefield prepared the affidavit—this is it, but I am under the impression that I made another, stating the facts, I cannot be certain—I have been in communication with the trustee and the other creditors.

Re-examined. I was about to present a petition to make the prisoner a bankrupt, and instructed Messrs. Pritchard and Englefield—I found out that he hid filed a petition ten minutes before mine was ready—this is an affidavit of my debt.

JOSEPH POLITZER . I am one of the firm of Phillips, Politzer and Co., of 35, Queen Street, and am the trustee in this bankruptcy—on 8th July last the prisoner called on me and proposed to buy certain matgolian skins for £255 15s.—while he was negotiating for the price I was compelled to go out, and on my return I found that the skins had been sold to him on four months' credit—as he owed us £700 before that, and the goods had gone, I sent and had the cart called back, and they came into the house again—I then caused a memorandum to be written to the prisoner, requesting him to call on me—he did so, and I said that I understood he had made a further purchase in our warehouse that morning, and I found that his account was about fully as much as I cared to give him; I should like to hear from him what his position was—he said his position was perfectly sound and good—I said that he had had a lawsuit at the end of the previous year, which must have cost him a good deal of money, and that made me feel that I ought to ascertain how he stood—he said it only cost him £300 or £400, and had not

interfered much with his business, in fact, he sail, "If these were goods I could obtain at public sales I should not come to you at all, as I could buy them at a public sale for cash"—I said, "If you have cash for a public sale you might find some cash for me as well"—he said, "Well, will give you some cash, say, £100, that is £70 down, and £30 at the end of the month, in July"—I then agreed to let him have the goods, and my porter brought back £60 instead of £70—I let him have the goods in consequence of his statement that his position was perfectly sound and good—I subsequently saw Mr. Rice, one of the creditors, at his office, and in consequence of a communication from him, I sent for the prisoner on 17th July, nine days afterwards, and told him there were rumours in the City that he was about to stop payment, and as he owed me a large amount he had better give me a straightforward answer whether there was any truth in the rumours or not—he replied, "There is not any truth in it whatever, I am perfectly solvent; the rumours were spread by two boys who I have discharged, and I am prepared to pay any of my accounts with an extra discount of 10 per cent. "—I asked if he had the money to do it—he said, "Yes, by sending out statements, and allowing an extra discount to my customers, I can obtain some money"—I advised him to do so, as it would put a stop to the conversation in the City, which would be apt to injure his credit—he called a private meeting of his creditors about a fortnight afterwards, July 31st—I have received proofs of debt against his estate of about £7,400, and the invoices of goods supplied to him by the creditors have come into my possession, and among them several of Messrs. Martin and Son, between 20th May and 1st July; they are of seals—my firm supplied him with 100 seals—I have an invoice here for 90 sealskins from Messrs,. Muhlberg, dated June 2nd, and two of 2nd June and 6th July, for goods supplied by Messrs. Uhlman—on 3rd June he bought 90 skins for 40s. from Mr. Muhlberg, and sold them within ten days at considerably under that price—his business was not that of selling skins in the whole, but purchasing them to manufacture; he had no business to sell skins at all—the sales to Cohen were of skins in the whole—the skins which were in his business at the date of his bankruptcy realised about £1,100—he stated that they cost £2,000.

Cross-examined. He has put down £7,087 for the goods which I offered for tender—£3,787 17s. 11d. would not represent the total amount which he would have realised according to his books—I cannot tell you whether £2 8s. was the proper. price for the muff-bags, I am not a manufacturer, and his books are no guide; I did not waste my time with them, I looked at them to see—I sold the muff-bags in a lump, which he had bought at 24s. or 23s.—I employed the best men I could to do it; two or three of the members of the committee who were in the trade—the goods were submitted for tender to the largest houses, and the highest bidder got them; there was no reserve—I have had transactions with him under three years—he paid me about £700 in 1889, I do not think it was £1,000, and then I gave him a further credit of £900, and did not get my money; that is my claim—I had no conversation with him about securing my debt, I was in the Isle of Wight; my brother or partners may have done so—I may have said something to the prisoner about it being troublesome for him if he did not find security; I did not say anything about making it hot for him.

Re-examined. I employed a chartered accountant to overhaul the books—the prisoner came to me on the day I was appointed trustee, and asked me if I would allow my brother to leave the office; I said that I had no secrets, and declined to send my brother out; he then offered me £500 if I would work for him and not for the creditors—I said I thought it a very nice affair, and immediately went to my solicitor, and a committee meeting was held at which I made a statement.

GEORGE RICE . I am a fur skin dyer in Great Prescott Street—I have had transactions with the prisoner for about three years prior to his bankruptcy—I know Mr. Politzer, and have done business with him—I had a conversation with him on 19th July, in consequence of which the prisoner was sent for—Mr. Politzer asked him if there was any truth in the rumours which he had heard as to his position: he asked for particulars of the rumours—Mr. Politzer said he had heard he was making large purchases of goods on credit, and he had been asked as to his position by other customers—he said there was no truth in the rumours as to his position being at all unsound—he admitted purchasing a large parcel of seals, but he was quite able to pay all his creditors when their accounts became due, and he repeatedly assured us both that he was perfectly sound and could pay twenty shillings in the pound—I was induced to give him further credit, being perfectly satisfied with his assurances.

Cross-examined. Two or three days before this interview I spoke to a merchant; it did not amount to a reference, but the merchant supplied goods to the prisoner in consequence—twelve months before this I supplied the prisoner with £300 to meet a draft, as he had very heavy payments—he carried on business fairly and honestly—I used to send goods to him—I am a creditor for £250, all unsecured—I was a creditor for £450—I hold goods of his; I got some of them three months and some four months before the date of the petition from day to day; some would be in my possession a week, some a fortnight and some three months—I did not get £100 worth of goods into my possession after the interview, sent to me to dye—I tried to realise them by surrendering them to the receiver—I got £200 last month from Pritchard and Englefield after I had given my evidence—I was called as a witness at the very earliest period—the prisoner asked me not to send him any goods, as he had been served with a writ one day before he filed his petition.

Re-examined. I claimed to detain the goods which the trustee has paid me for, having a lien upon them—I had no reason to doubt the prisoner's solvency.

CHARLES PAULING . I represent the firm of A. Servant; my office is at 26, Cheapside, and as their agent I have supplied goods to the defendant—in July last he was indebted to the firm about £600—he called on me on July 7th, to buy a further amount of goods value £240—I told him that as he owed £600, I could not let him have any more except for cash, or part cash—he said he had plenty of cash, and could easily pay our account if he wished, but he intended to keep the money for other purposes, in proof of which he produced a paying-in slip of the same morning showing that he had just paid in about £500—I suggested that lie should pay us our account and I would sell him further goods on credit—he said that he required the money for other purposes, but would pay me at the end of the month for the goods he wished to buy,

200 dozen brown rabbit skins, which I agreed to in consequence of his statement that he had plenty of money and could pay his account.

Cross-examined. What he said was, "I can pay all cash if I wish"; and he produced his paying-in slip—that statement, and that he had money in the bank, induced me to give him credit—I do not deny that he paid the money into the bank; I believe it is true—he had been trying to buy the goods for several days—I am paid by salary and commission—I did not urge him to buy the goods, and I do not believe I sent him a telegram urging him to do so—he did not decline to take them on any terms—he wished to buy them—I was blamed to a certain extent by my employer about these goods—I never forced them on the prisoner—I have said, "After the failure I got blamed for giving him credit"—my debt was between £700 and £800.

SIMON WHARMAN . I carry on business at 119, Houndsditch—I first saw Mr. Serin, of the firm of Serin and Cohen, about May, 1889, and again at the end of August or September—he was then on his return journey to the Cape—I have had business communications with his firm since, but I do not think I saw him in England in July, 1890.

GEORGE RICE (Re-examined by MR. KISCH). I believe the goods in my possession, which were sold to the trustee, were 1,150 lama skin, 1,000 musquash skins, and 47 beaver skins—I very much doubt their being bought of Mr. Politzer—you cannot take the average of them if you have one thousand good ones and ten thousand bad ones—I charged 1s. or 1s. 6d. each for dying the lamas, but many of them were not dyed, the etings were 3d. or 4d.—I did not try to sell them elsewhere; I surrendered them to the trustee for the benefit of the estate.

CHARLES HENRY BURRELL . I am assistant to C. W. Martin and Son, and have had some years' experience in the cutting and manufacture of sealskins—I have seen the invoices of sales supplied to the prisoner during the year 1890, and a journal and day-book—I heard Mr. Cohen's evidence at the Police-court, and made notes of it—twenty-one skins would not make 650 bags, it would take over eighty skins.

Cross-examined. I am assistant to a skin merchant and dresser, and have been with him since 1885, but I give this evidence from experience I have had since 1863 with wholesale furriers—I do not know whether there was any stock in hand at the beginning of the year—I have heard of tapeing, that is the insertion of narrow pieces of tape between the skins; it is more used for the tails; it lessens the quantity of skin used, but it does not lessen the price, because it is an expensive operation; but a greater number of bags would be produced from the same quantity of skin—I have not given my evidence on assumed facts, nor have I assumed that they were made out of one piece of skin; the prominent parts of the bags are made from the sound portions of the skins, and small shreds are used to make the end of each bag—I think it is fair to assume that out of this parcel of skins there might be twenty-one left, considering what other goods he made up; it would not be impossible.

By the JURY. Taking the whole parcel of skins bought by the prisoner, and the total amount of his sales, he could not produce the goods he sold out of the parcel of skins and the offal that was left and the twenty-one skins; that would not produce the number of bags; if they had been

made up they would have been unsaleable goods—it could not have been done by the process of tapeing.

By MR. KISCH. 666 skins were bought; 16 cloaks were made up, which would take 45 skins, three for each cloak; 182 skins were sold to Fuller; that makes 227; the prisoner sold 532 to Cohen, which left 132 to be accounted for; 15 sealskin jackets were made; that would take 45 skins, and 144 bags, of which there is evidence of sale on July 4th, and one seal cape, which I take to be made from the pieces, and these were made up goods in stock which appeared to be sold—I made up this catalogue; the goods I allowed 50 skins for are eight solid seal capes, made from skins as distinguished from pieces; they would take not exceeding two skins; it might be considerably less—the 50 skins is not a guess; I work it out—I allow 45 skins for 15 jackets, 18 for the bags, and 52 for the stock made up, and that brings the quantity down to 21—I allow 54 skins for the 174 muff-bags, and 18 for the 12 dozen—if the bags were complete the addition would not be made in sealskin, but in other material.

GUILTY.— Judgment respited.

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