for him only, and the bills and notes were the fole property of him, this examinant, and fome times it was depofited feveral times over when bills were permanently discounted, &c. &c. and when by temporary loans they were put down in the Wafte-book, No 5. and there were other memorandums kept upon feparate papers, which were destroyed as foon as the bills were taken back again,

In order to give the utmoft fatisfaction, and to give the fulleft anfwers in his power, he has caufed an inspection of the said Wafte-book, N° 5. by which it appears, and the truth is, this examinant, by that and the affiitance of his friends, fome of whom were customers of the houfe, and by all the accounts produced fince Christmas laft, bills were discounted to the amount of 250,000l. which were brought to the account of the partnership, and there were then at the time he became a bankrupt, fundry bills which remained unaccounted for by him, the produce thereof being for his own feparate ufe, for which he remained indebted to the partnership.

The fchedule marked B. &c. doth contain, to the best of his knowledge, and belief, an account of the bills and notes that were belonging to the said partnership estate, and were taken out of the faid partnership house, either for the ufe of the partners, or for his own feparate ufe, and to whom paid, &c. This bufinefs being done in a hurry, there may be fome mistakes or omiffions in the Wafte-book, or the others, but he is not able now to recollect or rectify them, the faid discounts for the ufe of the faid partnerfhio fince Michaelmass last, being very numerous.

Here the bufinefs was interrupted by one of the affignees, who fpoke to a gentleman fitting next to Mr Fordyce, having a book before him, in which he feemed to he writing fhort-hand, faid, Pray, Sir, are you a creditor? Upon which the gentleman ftood up, and faid, he was not a creditor, but was defired to take minutes by feveral of

the creditors, one of whom said, that there were feveral, who being abfent, and not able to attend, were defirous of knowing what paffed, accordingly with one voice the creditors faid "They could fee no objection to it."

Mr Fordyce immediately rofe, and faid, that he had no manner of obejection to it; for he defired nothing but what was fair and open: and, pulling fomething like a letter out of his pocker, begged leave to fay one word tó this company: this, gentlemen (fays he) is a letter I received before I came out, under this cover; I found it was a publice paper, fent, I fuppofe, to intimidate

me.

Commiflioner Hotchkin replied, it was a very improper thing.

The clerk then proceeded to read again:

This examinant faith the discounts were very numerous fince Chriftmas laft, and that he had not been able to draw out the particulars thereof, which particulars may hereafter appear. He further fays, the partners not only knew of, but often aflifted him, for the purpofe of fettling thofe difcounts, and fuch difcounts were with their privity and confent, which were in the Wastebook, N° 5. and that book was open to the partners and clerks of the house. He fays he does not know there was a ny fuch power or authority neceffary to be given by his partners to him, as he apprehends. Says no part of the produce of the notes hath been, fince Chriftmas laft, applied to the examinant's private account, in any other manner than in the manner aforefaid, it being in his fhop, in the ordinary course of his bufinefs, till the 9th of June laft; for he, during that time, was in poffeffion of the whole of the faid partnership property, as much as they were, as partners of the bankinghoufe; and he was not, at any time after, poffeffed of any cafh, bills, notes, &c. or of any produce of them: and that what is mentioned in schedule B. is all the accounts he can. collect, by R 3 which

which it will appear how and in what manner he difpofed of the faid property whereof he was then poffeffed. This examinant further faith, that he did not take away with him any cash, bills, or notes, &c. belonging to the partnerfhip.

Schedule B. read, containing an account of bills belonging to this examinant only; fome depofited with Sir George Colbroke, the 20th May, to the amount of 2730l. and upwards; with Adams, to the amount of 3500l. with Fuller and Co. 27th of May; with Caftell and Co. 7th of May; with Scrimshaw 2000l. Ireland 5000l. with Brown and Co. the 8th of June, and feveral others, amounting in the whole to 27,471 1. 14 s. 9 d.

The account being read, Mr Maddox, the council attending in behalf of the creditors, and the perfon alluded to by Mr Cuft in the beginning, then interrogated Mr Fordyce, nearly in the following manner.

Mr Maddox.] I attended to the examination; upon reading it feems to me indeed that a very full anfwer is given to feveral of the enquiries that were made. I will juft mention the nature of the enquiry, and the nature of the answers, and then I will inform you what the gentlemen with more to enquire into.

The answers, I fay, continued Maddox, Mr Fordyce, we were defirous of knowing, as appears by this enquiry, were what number of bills and notes, fince Criftmas laft, have come to the hands of Mr Fordyce, one of the partners? how thofe have been applied, and whether his poffeffing himself fingly of thefe notes and bills was in confequence of any power given him by the part ners, or with their privity and confent? then an enquiry, whether by any means the money which was received in confequence of that poffeffion, by Mr Fordyce, for those bills, had been laid out or vested in any fecurities whatfoever, or any purchases; if they have, the affignces may have it in their power to

purfue fuch fecurities and purchases; and whether, fince the 9th of June last, fince the act of bankruptcy, any parts of them have fince been in Mr Fordyce's hands? These are enquiries, which, to be fure, the affignees have been very prudent in feeking for full anfwers to. The tendency of the anfwer to it is this. Since Christmas laft the fhop was bare of money, but the shop was in poffeffion of various bills, and as they were applied to by their cuftomers to fupply them with money, they often found a want of cash, and for that reafon it was neceffary for them to raise money as well as they could to fupply their customers, who wanted to borrow money on notes or discounts, in fuch a way that the credit of the house should not be affected; then he seems to fay, that in order to acquire cafh, and at the fame time to avoid the credit of the house being af fected, Mr Fordyce took upon himself the office of getting bills, of which the partnership were in poffeffion, discounted by fuch means that it might not be known that they were discounted by the fhop, for the ufe of the shop at large. He fays, that those bills fo taken were for the purpose of supplying the house with cash, fome were depo fited only that he calls temporary depofits, fo that fuch temporary bills were depofited for a few hours, or a day only; thofe bills came back into the shop; others, he says, were discounted permanently, which is totally parted with and discounted; now when these bills were discounted, an entry was made of thofe bills in the Wafte-book, N° 5, and thofe that were depofited only as a temporary fecurity, an account was kept of them upon wafte paper, which were deftroyed as foon as the bills were deftroyed as came into the shop; then he fays, all the money raised upon those bills fo difcounted permanently, the money being received by Fordyce, was applied partly for the ufe of the shop to furnish their cuftomers, except fuch fums as were applied to his own ufe,

which fums, he says, are in the partnership books, and for which he is indebted to the partnership.

Mr Fordyce.] The fums applied to my ufe are all contained in that fchedule with the dates.

Counfel.] That is a further explanation by his examination; now there is nothing here that the affignees are not perfectly fatisfied with, as I understand, excepting this; they would be glad to know this fact. Whether the other partners in any inftances did or did not give Mr Fordyce any fpecial authority to discount any bills for his own proper and peculiar ufe.

Mr Fordyce. I believe, Sir, fome of the partners knew the bills were to be paid in that manner.

Commiffioner Hotchkin.] Mr Mad-. dox's question goes a little further, whether you had their direction for doing it.

in

Mr Fordyce.] Please to give me that my hand (pointing to the paper containing anfwers to the written queftions) I will tell the real fact, it would be unmanly and unfair to conceal any thing.

Mr Maddox.] Mr Fordyce, to fave you the trouble, I have put the idea the gentlemen want to enquire after, rather in a way that will be more in- telligible to you, it is this. Whether the money received upon the discount of the bills, which appears by examination to have been applied partly to the use of the house, and part of it to your own ufe, which was brought to your own account: the question we are defirous of knowing is, whether the railing fo much money for your own ufe, and placed to your account, was fo done with the privity or consent of the partners?

Mr Fordyce.] I don't know that all thefe particular fums were. Upon the 9th of June I had no opportunity of feeing those partners. I know it was fometimes done, and very often with the confent of the parties?

Mr Maddox.] Was there no written confent?

Mr Fordyce.] I did not conceive that neceffary.

Mr Maddox.] Thofe fums, which upon the discounting of the bills you applied for your own ufe, were they applied for the fatisfaction of your own creditors? The reafon for afking the question is this, that you will much easier give an answer that tends to clear the idea, whether or no any part of thefe fums, obtained by you out of the partnership money, are concealed or not; and I ask whether it was all applied to the fatisfaction of the partners?

Mr Fordyce.] It was all applied directly for the purposes of real bufinefs. I have not concealed a fingle farthing. I did not carry any abroad; and I could not go abroad without the affiftance of fome money lent me by a friend.

Mr Maddox.] Can you recollect, whether the railing this money was communicated to you by the partners when it was done, or did they know it before?

Mr Fordyce.] They materially affifted at it, by fpeaking to fone of the friends of the house to affift in doing it.

Mr Maddox.] Did they know it when you yourself did it?

Mr Fordyce.] I was chiefly upon the fpot; the books lay open, and they faw them every day.

Mr Maddox.] If you had wanted to discount a bill of 4 or 5000l. or any fuch fum, fhould you have told the partner, you intended to do it, or should you have told them afterwards?

Mr Fordyce.] I fhould have taken the liberty to have done it without asking them, as I was the principle creditor of that company.

Mr Maddox.] Did the others do the fame.

Mr Fordyce.] If any partner wanted a fum of money, he took it without asking any questions of any other part

thority from them for doing this difcount?

Mr Fordyce.) Do you mean for the accommodation of the house?

Mr Maddox.) Yes for the accomodation of the house.

Mr Fordyce.) They affifted in it, and approved of it every day, or every other day; it was impoffible for them not to do it.

Mr Cuft's examination of Mr Fordye. Mr Cuft.) Mr Hotchkin, I will ask Fordyce a few questions.-Upon the 9th of June there was 60,000l. in bills taken away, I fhould be glad to know whether he has any idea that his partners knew any thing at all about the matter of his debiting that accouut? Mr Fordyce.) They did not know then, as I had no opportunity of feeing them; there is the Wafte-book N° 5, in which it was all mentioned. I apprehend they rather thought it was 70,000l. . Mr Cuft.) Did you ever mention it to the partners?

Mr Fordyce.) They were entered

in the book.

Mr Guft.) There is one article of 37,000l. carried to your debit on the 9th of June; they are bills you difcounted on the 9th of Jnue, I want to know whether they knew of it? I mean to fay, I should be glad to know whether the partners knew any thing of that fum being due from you, for those bills taken out of the house for your private use?

Mr Fordyce.) I fhould fuppofe they did; it is impoffible for me to fay that they did. I fay truly, I believe that book will fhew there were a great many bills entered as far back as the month of December; that book lay before them every day, and I have no doubt of their knowing. I imagine they ra ther thought it, as I faid before, 70,000l. than 37,000l.

A Commiffioner.) I don't think Mr. Fordyce, that you mean to disguise any thing; but Mr Cuft's queftion was very plain. Did the partnership, or not, know you discounted them for your own private use?

Mr Fordyce.) I believe they did, for they lay under their infpection every day. They were entered in December, January, February and March, and were entered in that book.

Mr Cuft.) I don't ask about them; they might be regularly debited at those times in your account: but I ask whether, when thofe bills were discounted that were fet down in one of the Wafte-books, I don't recollect which, the partners knew of it? But, in the first place, I will afk another question, Did you not, upon the ninth of June, at night, fit up with the clerks, to take an account of bills that were discounted for your private use?

I

Mr Fordyce.) There is no doubt but did; and the greatest part were entered, as they now appear.

Mr Cuft.) But is there not 37,000l. entered, on the 9th of June to your debit? And at the time they were taken out of the drawer, were they entered in that book?

a

Mr Fordyce.) Not that day, Sir.
Mr Cuft.) If not the whole, was not
great part of it?

Mr Fordycc.) I believe there is no fuch fum as that you mentioned.

Mr Guft.) I fhould be glad to know of Mr Harrison, which is the book that 27,000l. is entered in upon the 9th of June?

Mr Fordyce.) If you will give me leave, gentlemen, I will endeavour to explain it. I have a very great defire to give every fatisfaction that lies in my power. That 37,000l. I fhould fuppofe was the balance of my account,

which I had overdrawn.

Mr Cuft.) Did that appear to the partners before the 9th of June?

Mr Fordyce.) A great part of that fum, which brought the account fo much in advance, is entered, and a great part was entered before the bills were taken out, and I dare fay they knew of it.

A Creditor.) Did you enter this in the Ledger when they were entered in

the

the Wafte-book? Why were they not entered in the Ledger?

Mr Fordyce.) They stood open in this book till the 9th of June, (looking at a book on the table.)

A Commiffioner.) They were entered in that book at the time they were discounted, I fuppofe, but not collected together till the 9th of June. Commiffioner Hotchkin.) What reafon have you to think the partners did know of it upon the 9th of June?

Mr Fordyce.) I have reafons to think fo; I had converfations with them upon it.

Queftion.] With which of them? Anfwer.] With Mr Down. Question.] I recollect it always has been reprefented to us, that till the very morning of your departure, none of the partners had any idea of that house being in the ftate of distress it abfolutely was. That they had been poor, and drawn upon very preffing occafions, every body agreed from Christmas till your departure, but every body knows, that on the morning of the fatal 10th of June, the news came by furprize upon the partners; they had no idea that 60,000l. fhould be due from yourfelf; now, the answer you gave to the hon. ourable gentleman was, you think they knew it.

Mr Fordyce.] I know they knew it, I had converfations to the full effect I have told you-Mr James was often with me, crying like a child, about the fituation of the house for many weeks Before the fatal event, and faying, "He saw we must ftop payment."

Mr Cuft.] Had James at that time any conception that you was indebted upon your own private account 60,000l.?

Mr. Fordyce.) I was not indebted at that time 60,000l. I will tell you why: with refpect to that paper fund, a great part of it went in bills of exchange, and fome went to John Fordyce of Edinburgh, as a discharge for 60,000l. that is the manner in which great part of this money went, for bona fide, debts due to him; for neceffary bills accepted, to discharge them, I

fpeak it with great cenfure to myself and great confufion, it was applied for my ufe.

Mr Cuft.) If you had not heen indebted 60,000l. the partners would have had 60,000l. more effects.

Mr Fordyce.) No doubt of it, Sir. No doubt of it, Sir.

A Commiffioner.) Then, Sir, it appears, you fat up great part of the night of the 9th of June, and when the balance was ftruck, you gave a draught for 37,000l. and the remaing deficiency was found out afterwards; we wish, for your honour and reputation, to elucidate thofe facts.-Did the house know you could have fuch a claim on them as 37,000l.

Mr Fordyce.) I cannot take upon me to fay they knew, but I rather fufpect fome of them knew or thought it was rather 70,000l.

A Commiffioner.) We do not go upon fufpicion.

Mr Fordyce.) I don't know they did abfolutely know it, but I conceive they

muft know it.

Mr Fordyce.) Mr Muir may owe large fums.

Queftion.) Do not M'Intosh and Haney owe large fums?

Mr Fordyce.) I believe they do fome little bills; but I don't know that they owe any large bills.

Mr Cuft.) Their is 16,000l. owing; there is one bill of 27,00l. of Mr Bolts.

Mr Fordyce.) 27,00l. Bolts! I know of no fuch a thing.

Mr Cuft.) Yes there is, and 1800l. to come from Colin M'Kenzie: he mentioned likewife fome other fums to other people: I only afk, whether thefe gentlemen did not borrow large fums?

Mr