In the Queen's Bench Division in Bankruptcy yesterday, this case came before Mr. Justice Cave upon an application by the trustee, Mr. John Brown, to reduce the proof of Mr. George Searle, which had been admitted for £1432 19s. by the Official Receiver, to the sum of £95 4s. The facts were these:
The bankrupt was a solicitor of Albion Chambers, Moorgate Street, formerly of Huddersfield, and was the unsuccessful Parliamentary candidate for Boston, Lincoln, and having absconded to a criminal charge in December, 1885, a receiving order was made against him.
The first meeting was held on the 19th December, when Mr. Searle's proof for £1432 19s. was admitted for dividend by the Official Receiver as chairman.
On the 23d December Mr. Brown was elected trustee of the estate.
The proof was made up of four items, the principal of which was £750, estimated profit on the sale of the Elms, Muswell Hill, £500 share in the sale of the Green Man public-house, a part of that property. As to the first item, it was alleged that Mr. Searle entered into an arrangement to purchase the Elms estate. It was purchased, and afterwards an agreement was entered into by which the bankrupt purchased Mr. Searle's share in the Elms estate for £3500, giving him three promissory notes at six, twelve, and eighteen months for that amount. These notes were all dealt with by Mr. Searle, he upon the third note having got an advance of £300 on the strength of a statement that the estate would pay 15s. in the pound. It was submitted that the agreement to take the promissory notes put an end to any claim as to the Elms speculation. So far as the Green Man was concerned £500 was claimed for the half share of the profits on the sale of that property. So far as that claim was concerned, letters had been found setting out that Mr. Searle was to have only £25. The agreement for the purchase of Mr. Searle's interest in the Elms was only produced to the trustee by Mr. Samuel Learoyd, the bankrupt's brother, in March last, and upon his receiving that document and getting the letters referring to the £25 he gave notice to expunge the proof as to those items. Upon these facts, Mr. Sidney Woolf submitted that notwithstanding the lapse of time the trustee was entitled to have the proof reduced by these amounts.
Mr. HORACE BROWN, on behalf of Mr. Searle, said that in the face of the agreement as to the sale of the Elms property, he should not persist in proving for the £750, but should submit that his client was clearly entitled to the £500 and the other smaller amounts.
Mr. George Searle was called, and stated that the bankrupt had acted as his solicitor. He (the bankrupt) purchased the Elms for £4500 on joint account with the witness, but he (the bankrupt) declined to become liable for more than the £3500, for which the promissory notes were given. His diary contained entries as to these matters, and by the entry of the 15[?]th August, the half share of the Green Man was to be paid to him, one of the inducements being the giving of the promissory notes. A small sum of £87 15s. in the proof represented his personal expenses, stamps, &c., connected with the Elms purchase.
By Mr. WOOLF: No one was ever present when he saw Mr. Learoyd, and after each interview he made entry in his diary of the transaction entered into.
In re-examination, Mr. Searle stated that he was not aware whether the bankrupt kept diaries or not.
The case was not concluded when the Court rose for the day. The further hearing will be resumed to-day.
Source: findmypast - Yorkshire Post and Leeds Intelligencer, 14 December 1886, Page 8, Column 2