Cambridge Chronicle 1 Jun 1888: Ephraim Wayman bankruptcy - meeting of creditors

THE WAYMAN BANKRUPTCY

LIST OF CREDITORS

MEETING OF CREDITORS THIS DAY

Notwithstanding the fact that the public have already been made well acquainted with the defalcations of the absconding solicitor, Ephraim Wayman, and the unscrupulous way in which he obtained money from all who would lend it to him, on various plausible representations, the case continues to excite the greatest interest in the public mind. In our last issue we published an approximate summary of the bankrupt’s affairs, which showed gross liabilities to the amount of £91,684 4s. 3d. – of which £86,583 13s. 7d. is expected to rank for dividend – and a deficiency of £54,067 5s. Further examination of the debtor’s affairs shows that for a long time he has been engaged in a systematic swindle of his confiding dupes. We have already explained how it was his common practice to mortgage other people’s property several times over, and negociate notes of hand for various amounts after the givers were under the impression that they had been cancelled; how he obtained, by impudent frauds, money from unsuspecting people, which was used in the discharge of some of the more pressing claims upon him; and the statement of the Official Receiver (Mr. Ellison) to the Judge of the County Court, on Wednesday, will find an echo in the minds of all who have heard of the bankrupt’s tactics. The bankrupt did not appear on that day to pass his public examination – no one expected that he would – and in asking His Honour to adjourn the examination sine die, Mr Ellison described the case as the greatest and worst instance of fraud that had come into the Court during His Honour’s time. About the truth of that assertion there can be no doubt. All classes of society are among his victims – from the wealthy tradesmen, whose loss will not be greatly felt, to the poor people, who, in their confidence, entrusted him with their all for him to invest to the best advantage. We have already given examples of the different classes of people who have been defrauded, and these it is not necessary to repeat to-day. A list of creditors who have proved their debts against the estate appears below, and will be found of great interest to the community. From it it will be gathered that no amount, however small, or however large, was ever refused by Wayman, and they range from such sums as £4,470 and £4,200 down to the smallest amounts. The majority of the claims against the estate are made by residents of the town or county of Cambridge, but there are several by people who live at some distance away. The personal debts of the bankrupt appear to be comparatively few; it is the money he has received to invest, with which he has made so free, and has appropriated to his own use, that is represented by his enormous deficit. Comment has, on a former occasion, been made on the careless way in which people have confided in him, without receiving proper security for the funds they advanced him, and which are now lost to them, but it was scarcely expected that, up to the present time, the only secured creditors should be Messrs. Foster and Co., the Cambridge bankers; still, all the creditors have not yet proved. It, however, is no matter of surprise that the bankrupt’s property should be small, and should only consist of office furniture, which is estimated to produce £93 12s. 3d. There are, of course, a considerable number of small debts said to be due to the estate, but what these may be worth it is difficult, as yet, to tell. Altogether, the “smash” is of the completest kind, and one of the most painful features of it is the fact that others have been, and others in all probability must be, dragged down to ruin as a consequence. The bankruptcy of Mr. John Linton, of Westwick, is a direct outcome of Wayman’s failure, and sudden departure from the town; and there can be little doubt that Mr. Linton is by no means the only victim of the frauds who must succumb to the heavy blows that investors (?) have sustained. Consequences even more tragic have not been wanting as a result of this great fraud, as witness the recent suicide of Mr. Anthony Phypers, of Longstanton, and dark hints are now heard to the effect that a suicide that took place several weeks ago is attributable to the fear of the bankruptcy of the man who, only a short time before, had reason to believe that Wayman had robbed him. Public execrations of the bankrupt are, of course, heard on all sides, and even those who were formerly his most intimate friends condemn him unstintingly, and hope that before long he will occupy the place he so well deserves – the dock. The County Court Judge, sitting at Peterborough, some little time ago, issued a warrant for Wayman’s arrest, but, of course, a man of his ability would necessarily foresee events which must happen and his plans were laid with a degree of cunning which has, up to the present time, rendered him safe from all pursuit. His whereabouts are not known, though plenty of speculations are afloat, but they are merely guesses, and must be regarded as such. For the present, he is safe from capture unless some, as yet, unforeseen accident happens, which will place him within the grasp of the law.

The first meeting of creditors was held at noon today. They first met, under the presidency of the Official Receiver, at his offices, Petty Cury, Cambridge, but so great was the number of creditors who were expected to be present that the large room at the “Lion” Hotel had been retained. There the business of the meeting was transacted. Here again the Official Receiver took the chair, and among those present were

. . .

The OFFICIAL RECEIVER intimated that several creditors first assembled at his office, and that in consequence of the large number that was expected that day he suggested that the meeting should be adjourned from his office to the Lion Hotel, and that the creditors who went to his office assented to that course; and he asked the assent also of the general meeting now.

The request was unanimously given.

The OFFICIAL RECEIVER now said the number of proofs which had been received by him up to that time and had been admitted for the purpose of voting was 63; and he had also received others which had been rejected, making a total of 73 proofs received.

He then read the following list of the creditors who proved in time to vote at the meeting with the amounts of their proofs, and the amounts of their debts, as they have been admitted for the purpose of voting. Debts to the amount of upwards of £30,000 have been proved.

. . .

The total amount of the proofs received is £35,122 16s., and the amount admitted is £32,345 9s 8d.

The following is a list of proofs which were not sent in to the Official Receiver in time for use at the meeting, and which have been rejected:-

. . .

The only secured creditors are Messrs. Foster and Co., bankers, Cambridge, and it may prove that their security, estimated at £5,074 10s. 8d., which consists of a mortgage on Birnam House, which is valued at £6,000, is not of the value which it is now supposed to be.

There are no partly secured creditors.

The claims of the preferential creditors are set down for £73 11s. 3d., and this amount includes £26 for rent of offices, due to the Master and Fellows of St. Catharine’s College.

The property of the bankrupt is put down as being only his office furniture, which is estimated to produce £93 12s. 3d.

As the foregoing list was being read, he (the Official Receiver) stated that, in the vast majority of the cases given, the money was owing by the debtor on account of sums advanced to him for investment, for the benefit of those advancing, and in only one or two cases were there such securities as reduced the amounts of the proofs sent in to the amounts which were admitted for voting purposes.

. . .

[expected liabilities £86,583; estimated assets £33,416; deficiency £53,167]

. . .

In addition to the creditors whose proofs had been received by him and admitted for the purposes of voting at this meeting, he knew of the following creditors who had not proved:-

. . .

Francis Parsons, Trumpington, £1,238 19s.

. . .

There were other such creditors, but he did not need to trouble the meeting with a list of them; and he did not think he had much else to tell them. But it might interest them to know that, on the 20th April last, Ephraim Wayman gave to Messrs. Wm. Furber, Robert Price and Herbert Furber, a bill of sale on his household furniture for £775; and he (the Official Receiver) made inquiries of Mr. Furber with reference to that transaction. Mr. Furber was only willing to give him a certain amount of information. He told Mr. Furber that he understood Wayman had had at his house, on the day before the date mentioned, a dinner party or council of war – he did not know which. Mr. Furber said that he himself and his brother had gone to the house at Wayman’s request – summoned by telegram – and that Wayman represented to him that he was about to take a smaller house, that he had been worried in consequence of Turner’s affairs, and that if Mr Furber would lend him some money he would be glad. Mr. Furber inquired what amount he wanted, and Wayman, Mr. Furber stated, offered to give a bill of sale on his household furniture. Wayman, moreover, asked whether Mr. Furber could let him have more money upon an absolute bill of sale than upon a conditional one – the difference, he (the Official Receiver) remarked, being that a conditional bill of sale was a mortgage and an absolute bill of sale was a bill of sale out-and-out. Mr. Furber said he could let Wayman have more money upon an absolute bill of sale. Of course, it was, obviously, to Wayman’s interest to get the uttermost shilling he could as he was on the eve of his departure from Cambridge. He executed a bill of sale on his household furniture and the description of that in the schedule was “The whole of the goods, chattels, and effects in and about the residence, stables, and grounds, known as Birnam House, Chaucer Road, Trumpington Road, Cambridge.” That was all the bill of sale contained. Mr. Wayman received, in Bank of England notes -–some of which he (the Official Receiver) believed had been traced – the sum of £775, and, the same night, he took a seat beside Mr. Furber in a carriage in the train which went to London. He spent the night at Mr. Furber’s, and he (the Official Receiver) believed he represented that he had some important business to transact. The next day he absconded. They had been successful in tracing him up to a certain point after he left London, but beyond that he was not at liberty to say where it was that they had lost sight of him. He could say, however, that even up to the 11th ult. they had succeeded in tracing him. Since they had lost sight of him a rumour had got abroad that Wayman had taken refuge in the United States or some other state where he would enjoy the money which had been handed to him by Mr. Furber. In addition to the bill of sale, Wayman executed an assignment of some of his book debts, amounting, in the aggregate – this was only an estimate furnished by Mr. Stuart Squire – to £2,226 15s. 10d. That assignment was given to Mr. Lofts, of Berkeley Square, London; and that assignment, as well as the bill of sale given to Mr. Furber, would probably form the subject of an inquiry before the Court. He did not suppose that the creditors would be inclined to pass quetly over those transactions unless they were investigated. They would exercise their common sense. Mr. Furber came down to Cambridge, and paid Wayman that sum of money for the contents of his house – contents worth double or treble that sum – and, although he (the Official Receiver) had applied to Mr. Furber for full particulars of the amount realised by the sale, he had not got them, but they could be got by the trustee, hereafter. Of course, the creditors would exercise their own common sense and say that Mr. Furber ought to, and must have known, what Wayman’s intentions were when he obtained that £775 under the pretext that he was going into a smaller house. It was nonsense, it was idle, to believe that that was not known. It would be for the trustee to inquire into the matter, and he was doubtful whether the County Court Judge would not take a more serious view of it than Mr. Furber took.

. . .

Mr. GINN asked the Official Receiver if he thought it would be right for the creditors to authorise the Committee (of Inspection) to expend any part of the estate in seeking to find Mr. Wayman.

The OFFICIAL RECEIVER: I cannot say that.

Mr. SANDERSON: I think it would be well to ask the Committee to do something; I think he ought to be picked up.

The OFFICIAL RECEIVER: I have every reason to believe that if the Committee of Inspection meet shortly and investigate the matter and report to the Board of Trade, the Board of Trade will communicate with the Treasury, with the view of offering some reward [hear, hear], or at all events, that some part of the public funds shall be spent in getting such a scoundrel back again to undergo the punishment he so richly merits. [Applause.]

Mr. SANDERSON: I will give you £5 towards bringing him back. [Hear, hear.]

The OFFICIAL RECEIVER: That won’t go very far.

Mr. SANDERSON: I believe there is a general feeling in the town against him, and if there is a subscription we might offer a decent reward to pick him up.

A Creditor: I will give £10.

Mr. PEED then thanked the meeting for electing him to the office of trustee, and said – I will use my best endeavour to bring this estate to as satisfactory a conclusion as it is possible to be brought to; and I am sure I will also do my best to work with the Official Receiver and assist him in all the details connected with his department; and particularly I will use my best endeavours to get the bankrupt back in Cambridge.

Mr. ADAMS: I am sure I am justified in speaking for the other members of the Committee, when I assure you our best endeavours will be to see that your interest is secured as well as our own interest, and I can repeat what the trustee has just mentioned – I am sure we all feel as anxious as others have expressed themselves here that the man who has deceived us shall be brought back to his just punishment.

The OFFICIAL RECEIVER: There seems to be an opinion that has got abroad that Mr. Wayman may have gone to Spain, and that there is no extradition treaty with Spain for offences committed by bankrupts. That is an erroneous conclusion. I believe I am right in saying that there is such an extradition treaty, but I do not think it matters much whether there is or not, because there is a way known to the police by which a person – although he may be in a country where there is no extradition treaty – may be “hustled,” put on board ship, and arrested the moment he puts his foot on English shore, and brought to justice. If Wayman can be brought to England, I am sure the Trustee will do his duty, even to the extent of getting him back again. [Applause.]

The proceedings then terminated.