1834.

Ex parte
TIPLADY

and others.

In the matter

of

DICKENSON.

ties or firms, or thereabouts, in a similar manner, on or before the 18th day of June, but without success:

That in addition to the collection of the debts, and the getting in of the property of the estate, there were various other duties of an extensive nature which devolved upon deponent, arising from or connected with the proper administration of the bankrupt's estate; as, for instance, examination of the bankrupt's books and accounts, and also the examination of his balance sheet; the examination and adjustment of the creditors' accounts previously to the proof of their debts, and subsequently on payment of their dividends; the making proper inquiries and taking proper steps with a view to the expunging and reducing of proofs, where he discovered or had reason to believe that the creditors have received monies from other sources connected with the bills and securities exhibited, or that for any other reason the proof made is greater than it ought to have been; also, the examination and payment of all claims for wages, allowance to the bankrupt, rents, taxes, rates, insurance upon property belonging to the estate, carriage of goods, and all other charges incidental to the working of the estate:

That the items specified in the affidavit of Tiplady as composing or forming the sum of 4881. 17s. 2d. were fixed and calculated by the commissioner himself, and by his direction copied in the margin of the accounts of the assignees previously to the accounts being sworn to, and passed by the commissioner; that such allowance was made by the commissioner after frequent meetings had been held by the commissioners of the Court of Bankruptcy, to consider and determine the principle and views by which they should exercise their discretion in making allowances to official assignces, having regard

to the nature of the duties to be performed by such official assignees, and to the amount of the respective estates to be administered:

1834.

Ex parte TIPLADY

of

That out of such allowance as aforesaid deponent has In the matter to pay the rent of his offices, clerks' salaries, and all other charges connected with the establishment of an office where extensive business is conducted:

That on the 19th of April last he paid 5741. 14s. 4d, by a cheque on his private bankers, to redeem certain mining shares which had been pledged, and on the same day received 850l., being the produce of a sale of such shares :

That the mode adopted for redeeming such last-mentioned property was highly advantageous to the estate, in having rendered an application to this Court unnecessary on the part of the equitable mortgagee for an order of sale, and all subsequent proceedings consequent on such order, whereby great expence was saved to the

estate:

That he has been informed and believes that previously to the issuing of the fiat the bankrupt offered a composition of 78. 6d. in the pound in full satisfaction of the debts owing by him, and there has already been paid to the creditors who have proved a dividend of 98. in the pound.

The following affidavit was made by Peter Harris Abbott and James Foster Groome, two of the official assignees :

That prior to their appointment as official assignees they had been for many years almost exclusively employed as public accountants, and had extensive employment and experience in the collection of debts due to bankrupts' estates, and the examination of bankrupts' accounts, and other business necessarily attending the winding up of bankrupts' affairs:

DICKENSON.

1834.

Ex parte
TIPLADY

and others.

In the matter

of

DICKENSON.

That they were generally allowed by the commissioners acting before the formation of the present Bankruptcy Court any rate of commission for the collection of debts satisfactory and agreed to by the assignees who employed them, varying according to the amount and character of the debts collected, besides an extra sum, which constituted the principal profit of the accountant, for time occupied by their clerks and themselves in the examination and preparation of the bankrupt's accounts, and other accounts and transactions relating to his estate, as also for their attendance upon the commissioners, assignees, solicitors, debtors and creditors of the bankrupt estate, and for the examination, adjustment, or payment of the various demands thereupon, and for other general business which arose in the working of the bankrupt's estate:

That if the estate of the bankrupt had been administered in the manner adopted before the establishment of the present Court of Bankruptcy, and either of deponents had been employed as accountants to collect the debts, and to conduct the general business, they should have expected a commission of 57. per cent. for the collection of the debts alone, independent of their charges for all other business to which their time and attention would necessarily have been required; and that they verily believe, from their experience in bankruptcy proceedings, that such charges would have exceeded 4887. 17s. 2d., the sum awarded to the official assignee under this estate:

That from such experience, both before and since the foundation of the present Bankruptcy Court, the assets of the bankrupt could not have been got in under the old system, either as respects the proportional amount of assets realized, or as respects the time, within which the same has been gotten in.

1834.

Ex parte TIPLADY and others.

of

DICKENSON.

In answer to the foregoing affidavits, John Tiplady, the creditors' assignee, deposed that he applied to Mr. Parrinton and also to Mr. Threlkeld, of Woodstreet, Cheapside, accountants, and inquired the par- In the matter ticulars of their charges in managing and winding up of bankrupts' estates; and was informed by each of them, that if he had been employed in winding up the bankrupt's affairs, and had been left to make his own charge for so doing, by way of per-centage on the amount of book debts received, he would have considered that a commission of two and a half per cent. on the amount received for the book debts, in addition to three quarters per cent. which Mr. Parrinton charged for the arrangement and sale of stock, would have been a full and fair remuneration for all the business to which his time and attention would necessarily have been required, so far as he could form an opinion, including the examination of the bankrupt's books and accounts, and also the examination of his balance sheet, examination and adjustment of the creditors' claims previously to the proof of their debts, and subsequently, on payment of their dividends, the making proper inquiries and taking proper steps with a view to the expunging and reducing of proofs, where, from information obtained, it should be discovered or there should be reason to believe that the creditors had received monies from other sources connected with the bills and securities exhibited, or that, from any other reason, the proof made was greater than it ought to have been; also the examination and payment of all claims for wages, allowance to the bankrupt, rent, taxes, rates, insurance upon property belonging to the estate, carriage of goods, and all other charges incidental to the working of the estate; and that he had never received so much as 4887. under any

1834.

Ex parte
TIPLADY

and others.

In the matter

of

one bankruptcy or insolvency. And Mr. Threlkeld further informed this deponent he had the management and winding up of the bankruptcy of Messrs. Wilson and Lilliman, warehousemen, under which he collected debts to the amount of 10,000l. and upwards, and sold DICKENSON. stock to the amount of 8,000l. and upwards, with the assistance of one of the said bankrupts, in small parcels, and that up to the first dividend the sum of 19,000%. and upwards was divided among the creditors; and that for all Mr. Threlkeld's services he charged 17. per cent. and no more on the produce of the stock and debts, which commission amounted to 1937. 15s. 10d.; and the assignees and creditors, in consideration of his extraordinary exertions, gave him a further sum of 521. 10s., making together 2467.; and that, at the second dividend, a sum of 3,000l. and upwards was divided among the creditors, and his further charge amounted to 397. 1s. 6d. and no more.

The deponent then went on to state, that to the best of his judgment and belief Mr. Parrinton and Mr. Threlkeld were two of the persons who have been for many years most extensively engaged in the business of public accountants, so far as relates to the disposal of the property, collecting in the debts, and generally in the management and winding up of the estates of bankrupts and insolvents in the line of business carried on by Dickenson; and that it was he, and not the official assignee, who arranged for the redemption and sale of the mining shares; and that he got from Edwards his cheque for 5747. Os. 4d., which was immediately paid by deponent to the mortgagees of such shares, and within an hour afterwards he paid to Edwards, in his own office, the sum of 850l., for which he (deponent) sold the shares.