night have been, he found that he had no alternative in the matter, seeing that his learned friend the Attorney-General insisted upon every witness who could throw any light upon the inquiry being placed in the box. Under these circumstances he should reserve any further comments upon the evidence until after the witnesses were called. The first witness he proposed to call was the Attorney-General himself. Sir Henry James, examined by Giffard, explained the circumstances under which he first undertook to contest the borough in 1868. He was invited by some of the constituents to come down, and undertook to do so on the distinct understanding that no corrupt practices would be resorted to, that he should not be required to attend a meeting at any public-house, and that no committee-room should be held at a public-house. These conditions were complied with, and he came down to Taunton. He was seated on petition. Mr. Lane acted as his agent, but was since dead. Mr. Burman, a tradesman, was then appointed, and acted for him in 1873. There was very little drunkenness during the contest, and only on two occasions was he asked for drinkeach time by a woman. One voter wrote a letter to him asking for £5. His canvass was purely a personal one. He was not accompanied in it by Mr. Burman. His canvass was highly successful, and throughout the polling he had no reason to believe that he was ever at the bottom of the poll. One of his agents told him after the polling that he was beaten, and that was the first time he had any reason to suppose that his opponent had a chance of success. It turned out, however, to be a mistake on the part of his agent, and was soon rectified. In regard to Rollings, he knew nothing of him further than as an active member of the Land and Labour League, and never employed him as an agent or canvasser. After some further evidence, the court adjourned. whether it was filed within the six days required Cottingham wished the court to take note of Ambrose contended that the court had decided on the simple question that they had not left the notice at the rule office on the sixth day. The question whether the six "clear" days was not touched upon, because it was a custom with the court never to decide upon a point which did not arise. The trial was to be on the 20th. The list was tendered on the 13th, but not left till the 14th. For his part, if it had been left on the (Before T. W. SAUNDERS, Esq., Recorder of Bath, 13th, he was convinced that it would have been Commissioner.) MANCHESTER SESSIONS COURT. Be BATTY (A Councillor of Exchange Ward.) Municipal petition-Technical objection-Lists not delivered. At the election for Exchange Ward, in November The commissioner refused to dismiss the petition Cottingham, barrister, for the respondent. Grundy (of Grundy and Kershaw), for the mayor, the returning officer. In this case a petition had been lodged by Mr. Nield against the return of Mr. Batty for Exchange Ward in November last, at which election there had been a tie between these two candidates, and the mayor, who was the returning officer, gave his casting vote in favour of Mr. Batty. The petition declared that the respondent was not duly elected by a majority of lawful votes, and therefore a scrutiny was prayed for. A rule nisi had been applied for and obtained by Mr. Ambrose in the Court of Common Pleas, calling upon the respondent, Mr. Batty, to show cause why the petitioner should not be at liberty to give evidence against the list of voters tendered at the rule office, and why the said list should not be filed. It appeared that the petitioners had deferred the filing of the list to the last moment, and it was a question in time. When the list was tendered on the 13th, Cottingham refused to accede to the sugges- A long discussion then ensued on the question that the costs in a case under these peculiar cir- Cottingham said if the petition had been with- Ambrose contended that the commissioner had a Cottingham having briefly replied. of £500. He had shown that he was animated by a desire honestly to go on with and have the petition tried. He (the Commissioner) did not, therefore, look upon his conduct as being in any way tinctured by frivolity or insincerity. The 7th rule provided that the list of objections should be filed six days before the day of trial. That meant that one day should be included, and another excluded, and therefore if the particulars had been filed on the 13th they would have been in time. The clerk who tendered them volun tarily took them away again, but if he had insisted upon their being received, the question would have arisen whether the tender was not in fact a filing. No doubt the petitioner drove the thing to the last moment. It was a pity that he was not more liberal in his views, and did not file his particulars in ample time, but he did nothing more than he was lawfully justified in doing. The particulars, however, were not strictly filed, and the respondent had a right to rely upon that, and so far he had the advantage of retaining his seat. He could not shut his eyes to the fact that this was a bona fide petition. There were on both sides a great many questionable matters for the consideration of the court, but it was impossible for him to suggest which side would have been victorious. Here, however, was a bona fide petition, honestly presented, and he could not look upon it as being in any way frivolous. It failed to some extent on a techni cality. He thought the petitioner had the moral merits of the case, and did not think that he was called upon to visit him with the costs, he there. fore made no order as to costs, and should certify that Mr. Batty had been duly elected. Cottingham thought the Commissioner had power to reserve a point of law, and he wished the point in reference to the construction of the Act of Parliament on the question of the time of notice to be reserved. The COMMISSIONER said his discretion as to costs was unfettered, and Mr. Cottingham could hardly go to the Court of Common Pleas with a case as to how he exercised his discretion. Grundy (who represented the Mayor).-I under stand you to dismiss the question of costs with regard to Mr. Batty and to grant costs to the Mayor? Ambrose said he must consent to an order that the returning officer should have his costs. He must also consent to the costs of the town clerk being allowed. objections were made to votes upon which the The COMMISSIONER remarked that a number of register was conclusive. For instance, voters the ward sufficiently long, or because they were were objected to because they had not resided in not duly rated to the poor. The court had nothing to do with these questions. Ambrose said these objections were made on them. both sides, and a question would have arisen as to The proceedings then terminated. REAL PROPERTY AND NOTES OF NEW DECISIONS. BILL OF SALE-COVENANT TO PAY IMME DIATELY ON DEMAND "-REASONABLE TIME FOR PAYMENT-CONSTRUCTION.-By a bill of sale dated the 15th April 1873, the plaintiff assigned all his goods, &c., to the defendant to secure a sum of £100, upon the express condition that if the plaintiff did not "immediately upon demand left for him at his home, pay the money due, it thereof in writing," delivered to the plaintiff or shall be lawful for the defendant to seize and sell the goods comprised in the bill of sale. On the 27th April 1873, the defendants went with bailiffs to the plaintiff's house and there saw the plaintiff's wife and son, who told him that the plaintiff was from home, they knew not where, and that he might be gone to America for aught they knew. The defendant then read and delivered to the wife and son a written demand for payment, which not being complied with, he at once put the bailiffs in possession, and after an interval of eight days sold the goods. The plaintiff returned to his home on the 8th May, and said he had started with the £100 to go to S. on business, but had gone to R., had got drunk, and remained away 64 on a spree." In an action against the defendant for so seizing and selling the plaintiff's goods, it was held by the Court of Exchequer (Kelly, C.B., and Bramwell and Pollock, BB.) that the defendant was under the circumstances perfectly justified by the terms of the bill of sale in seizing the goods as he did, immediately upon the demand having been made as above stated. Toms v. Wilson and another in the Q.B. and Ex. Chamber (7 L. T. Rep. N. S. 421, 8 ib. 799; 3 B. & S. 422 and 455; 30 L. J. 32 and 382, Q.B.), and Massey, Sladen and others in the Exchequer (L. Rep. 4 Ex. 13; 38 L. J. 34, Ex.), discussed and distinguished: generally. A dissentient creditor is as much conclusive evidence that the capital has been subscribed (Ystalyfera Iron Company v. The Neath and Brecon Railway Company, 29 L. T. Rep. N. S. 662. M. R.) UNREGISTERED ASSOCIATION-WINDING.UP.In reply to a circular issued by M. and D., setting forth a project for acquiring and remodelling a theatre at the cost of £12,000, with the intention of selling it to a company, to be formed for the purpose, for £40,000, which would enable a return BEQUEST OF LEASE to be made of £300 for every £100 subscribed, HOLDS NOTICE TO TREAT FOR SERVED ON several persons, exceeding seven in number, subTESTATOR - NO WRITTEN AGREEMENT-CON- scribed to the project. The theatre was at first VEYANCE BY EXECUTRIX-MESNE RENTS.-A carried on by M. and D., and afterwards by three testator bequeathed two leasehold houses to A., of the subscribers. A creditor, on the grounds and appointed B. his executrix and residuary that the subscription to the project constituted legatee. Previously to his death the testator the subscribers partners, presented a petition to was served, by a railway company with notice to wind-up the partnership under the 199th section treat for the sale of the leaseholds. No written of the Companies Act 1862. Held, that the subagreement was executed, but surveyors assessed scribers were partners, and being more than seven the amount of the purchase money, and it was in number, came within the Act, and the order arranged that the testator should continue to was accordingly made: (The Royal Victoria Palace receive the rents until the completion of the pur- Theatre, 29 L. T. Rep. N. S. 668. V.C. B.) chase. Nothing more was done until after the VOLUNTARY WINDING-up · CONTINUATION death of the testator, when B., as executrix, con- UNDER SUPERVISION - PRACTICE.-The 147th MINES EXCEPTED OUT OF GRANT OF SURFACE veyed the property to the company. Held, that section of the Companies Act 1862, empowers -RIGHT OF OWNER TO SUBTERRANEAN WATER. the bequest was adeemed, but that A. was enti- the court, notwithstanding the opposition of un-In a case in which mines were altogether tled to the rents received from the testator's paid creditors to order a voluntary winding-up to excepted out of a demise of the surface, held death to the date of the conveyance: (Watts v. be continued under supervision. Where, therefore, (reversing the judgment of the court below), that Watts, 29 L. T. Rep. N.S. 671. V.C. H.). the creditors of a company, in the course of volunthe rights of the owner of the surface, and the DOMICIL OF ORIGIN-ABANDONMENT OF-tary liquidation, presented petitions for windingowner of the mines did not in any way differ from WILL-GIFT OF RESIDUE - ADEMPTION.-In up the company, the court declined to make a those of the owners of adjoining closes, who are 1858, the testator, a native of Montreal, where, compulsory order, but directed the voluntary strangers in title, each of whom is entitled to the up to that time he had carried on the business of winding-up to be continued under supervision. water found upon his land, but neither of whom a merchant, sold his house, and also a piece of Where successive petitions were presented for is entitled to complain of the loss of that water by ground that he had there purchased in the burial winding-up a company, in ignorance of prior petinatural percolation set in motion by his neigh-ground, and accompanied by his family went to tions, the court, in making the order, allowed one bour's excavations; for it makes no difference Paris for the education of his children, where he set of costs on all petitions: (Re Owen's Patent whether the respective closes are adjacent verti- resided until 1868, when he came to England and Wheel, &c. Company, 29 L. T. Rep. N. S. 672. cally or laterally, and the grant of the surface purchased the lease, having thirteen years unex- V.C. H.) cannot carry with it more than the ownership of pired, of a house, which he furnished, and in which the entire soil would: (The Ballacorkish &c., he lived until his death in May 1871. Testator on Mining Company v. Dumbell, 29 L. T. Rep. N. S. several occasions returned to Canada for the 658. Priv. Co.) transaction of business, and on one of such occasions made his will in the French language, and in the form usual in Lower Canada, describing himself as of Montreal, merchant, and appointed four executors, of whom three were resident in Canada; and on another such occasion made a codicil to his will, describing himself in the same manner. While residing in England, testator's daughter married an Englishman, and he also established his son in business in England. Held, that the testator had acquired an English domicil. Testator, by his will made in 1853, gave all his property, subject to an annuity, to his wife (who predeceased him) for life, to be divided equally between his two children. In 1869 testator, on the occasion of the marriage of his daughter, covenanted to pay to the trustees of her marriage settlement the sum of £8500, and in the meantime to pay to them the annual sum of £525, upon trust for his daughter for life for her sole and inalienable use, with remainder to her children as she should appoint, and in default of appointment for all her children who should attain 21 or marry. Testator also advanced to his son a sum of £2000 for the purpose of placing him in business. Held, that the sums settled by the testator on the marriage of his daughter and advanced in his lifetime to his son, must respectively be taken into account in estimating the shares to which they respectively were entitled under the testator's will: (Stevenson v. Masson, 29 L. T. Rep. N. S. 666. V.C. B.) RIGHT OF WAY-SUBSTITUTED WAY.-The grantor of a right of way over a towing path along a private canal built a bridge over the canal, which entirely blocked up the towing path, and obliged the grantee to go through the grantor's land around the foot of the bridge in order to rejoin the towing path. Purchasers from the grantor of the land over which this right of way existed, attempted to prevent the grantee from using the substituted way which the building of the bridge had obliged him to use. Held, that the grantee was entitled to an injunction restraining the purchasers from interfering with his use of the substituted way: but that the injunction must be limited to the period during which the obstruction of the towing path by the bridge might continue, and was not to extend so as to authorise the grantee to use the substituted way for any other purpose than towing barges. Order of Bacon, V.C., varied: (Selby v. Nettlefold, 29 L. T. Rep. N. S. 661. L.C. and L.JJ.). TESTAMENTARY SUIT-MARRIED WOMAN'S WILL SETTLEMENTS COSTS. A married woman executed a will by virtue of a power, by which she appointed A., her husband, her universal legatee. A. did not prove the will, but dealt with the estate, which was all included in the marriage settlement. On the intermarriage with B., his adopted daughter, with C., he settled on her a sum of £5000, in which he included a certain portion of his wife's estate. B. and C. proved the will of the testatrix, which was opposed by her next of kin, and the court, in decreeing costs out of her estate, held, that no portion of the fund settled at the marriage of B. and C. was liable to COMPANY LAW. the costs of the litigation: (Adamson v. Adamson and Hammond, 29 L. T. Rep. N.S. 700. Prob.) NOTES OF NEW DECISIONS. EJECTMENT FOR FORFEITURE-NONPAYMENT RAILWAY-COMPULSORY POWERS-NOTICE TO OF RENT-CONSTRUCTION OF COMMON FORM- TREAT-DELAY · EVIDENCE.-A railway comMEANING OF 66 BEING DEMANDED."-The defen-pany, incorporated by an Act of Parliament, which dant was tenant to the plaintiff under an agree passed on the 29th July 1869, limiting the time ment containing a condition for re-entry if defen- for the exercise of the compulsory powers to dant should "make default in payment of the rent three years, and the time for the completion of within twenty-one days after it should have the railway to five years, served a notice to treat become due being demanded." The defendant for certain lands belonging to the plaintiff commade default on the 25th March, and the plaintiff pany on the 21st April 1866. By an Act of made demand on the 9th April, but the defen- Parliament of the 26th July 1869 (against which dant failed to pay. The plaintiff waited twenty- the plaintiff company petitioned), the railway one days, and then brought ejectment: Held, company was dissolved, and its undertaking was that the demand being made before the expiration amalgamated with that of the defendant company, of twenty-one days, was not a good demand and by the same Act the time for completing the within the meaning of the agreemet, and a rule works was extended for three years; but the period to set aside a verdict for the plaintiff in ejectment within which the compulsory powers given by the made absolute: (Phillips v. Bridge, 29 L. T. Rep. first Act were to be exercised was not extended. N. S. 792. C. P.) On the 18th Aug. 1871, the defendant company took possession of the lands, whereupon the landowners filed a bill to restrain them from continuing in possession. Held, that the time for completion of the works having been extended by the Act of 1869 (of which the plaintiff company had notice) to the 29th July 1872, the notice to treat was not invalidated by lapse of time. Held also, that the magistrate's certificate under ss. 16 & 17 of the Lands Clauses Consolidation Act 1845 must, in the absence of fraud, be taken as BANKRUPTCY — COMPOSITION SUBSEQUENT RESOLUTION TO REDUCE-WHEN PERMISSIBLEACTION BY DISSEnting Creditor-INJUNCTION -POWERS OF CREDITORS-32 & 33 VICT. c. 71, 8. 126, CLAUSES 1, 5, AND 6.-Under sect. 126 of the Bankruptcy Act 1869, creditors have power by an extraordinary resolution to reduce the amount of a composition previously accepted by them when the circumstances require it, and it will be for the benefit of the debtor and the creditors COURT OF APPEAL IN CHANCERY. Ex parte THE NEATH AND BRECON RAILWAY Lands Clauses Act-Money deposited by company Eddis, Q.C. and W. D. Gardiner were for the company. Kay, Q.C., Cracknall, and Whately, were for the landowners and others interested. Lord Justice JAMES was of opinion that the Vice-Chancellor's order was not in accordance with the Act. The money was paid into the bank to answer a particular purpose-viz., to secure the payment of the purchase-money with interest; that purpose having been answered the Legisla ture had said that the money was to be paid out to the company. It would be unlawful for the court to do anything else with it. The ViceChancellor's order must be discharged. Lord Justice MELLISH was of the same opinion. The money was deposited as security for the performance of the condition of the bond. If the matter stopped there, it would be a strange thing to apply the money to any other purpose. But the Act went on to say, in sect. 87, that on the condition of the bond being fully performed it should be lawful for the Court of Chancery to order the money to be repaid to the promoters of the undertaking. The court was bound in that case ex debito justitiæ to make an order for payment to the company. If any of the costs claimed were costs under sect. 80 of the Act, that section only said that it should be lawful for the court to order them to be paid to the promoters: it did not say that they were to be paid out of the money deposited. A discussion then arose as to the costs of the petition, and Lord Justice JAMES said that if the respondents had simply appeared, they would have been entitled to their costs; but as they had chosen to raise a litigation, no costs would be given. MARITIME LAW. NOTES OF NEW DECISIONS. DAMAGE TO CARGO-GOODS CARRIED INTO ANY PORT OF ENGLAND AND WALES-SHIP CALLING FOR ORDERS-GOODS DETAINED AT A FOREIGN PORT.-When a foreign ship carrying cargo, acting in pursuance of the contract of affreightment, which gives the option of several ports of call, English and foreign, puts into an English port of call for orders, she carries her cargo into the English port within the meaning of the Admiralty Court Act 1861 (24 Vict. c. 10), s. 6; and, though she be ordered to a foreign port, and there discharge her cargo, the Court of Admiralty has jurisdiction to entertain against her a suit by the assignees of the bills of lading of the cargo, for damage to cargo, and to arrest her on her return to this country: (The Pieve Superiore, 29 L. T. Rep. N.S. 702. Adm.) The warranty may be written in any manner on the face of the policy or be contained in documents expressly referred to in the policy. A formal expression is not necessary. Any direct or even incidental allegation of a fact relating to the risk may constitute a warranty. Phillips, sect. 757. But every recital of a fact is not necessarily a warranty, particularly if it be evident that it cannot have any relation to the risk. Ibid. sect. 758. The port being named, she must be in it, but for by a neutral in contemplation of war, unless may be moved about in it: delivered before the declaration of war. port Clark v. Westmore, Selw. N. P. 1008. In policies at and from, the general words "in "refer to the port where the voyage is to commence. The ship must be in that port on the specified day: Co by v. Hunter, 1 Mood. & Malk. $1. "Lawful trade:" Relates to the employment of the ship by the owners. A loss by barratry is recoverable under a policy containing this warranty: Havelock v. Hancill, 3 T. R. 277. "Sailed": Means unmoored and got under way in complete preparation for the voyage, with the intention of proceeding to sea without further delay at the port of departure. The warranty to sail is not complied with by Graham v. Barras, 3 Nev. & Man. 125; Pettegrew v. The risk under the policy having commenced 1 Phillips, p. 427, s. 772.. But if the risk is to commence only at the sailing of the ship, the warranty is not complied with unless the vessel actually sails within the time warranted. vided by the Goverment for vessels bound on the The vessel insured must sail with the convoy with convoy : Arn. 4th edit. 563; Phillips, ss. 780, 781. Proofs of neutrality. warranty the ship must be furnished with all those In order to be neutral within the meaning of the herself and her cargo required to be on board documents and proofs of the neutral character of either by the law of nations or by the regulations of international treaties : Arn. 569, 4th edit; Phillips, sect. 802. Arn. 570, 571, 4th edit; Phillips, sect. 802, et seq. ship by covering belligerent goods on board as An engagement on the part of the assured that the property is owned by persons resident in a country at peace when the risk begins, and who have the commercial character of subjects of such country, and that it shall be accompanied with conducted by the assured and their agents, as to such documents, and shall be so managed and be entitled as far as depends on them to all the Harrison v. Douglas, 5 Nev. & M. 180; 3 Ad. & E. 396, protection and privileges of property belonging to captain does not forfeit the neutral character of The warranties in the memorandum are simply the subjects of such country: agreements relieving the underwriter from lia bility for loss or damage under a certain percentage. The rule of a mutual insurance society merely directory to its committee is not an express warranty: Non-compliance: Its operation. Non-compliance with an express warranty is excused only (1) When the state of things contemplated by the warranty ceases; and (2) When a subsequent law makes compliance illegal. Failure even temporarily to comply with the warranty at any stage of the risk is fatal to the policy. American Law.-It relieves the underwriter from liability for subsequent loss. Phillips, sect. 783. Extent of warranty. The warranty is that the subject is neutral at the commencement of the risk, and that it shall continue to be neutral so far as depends upon the assured, or he is responsible: I b. sect. 784; Arn. 4 edit. 565. Part owners insuring their interest with a warranty as to neutrality the warranty extends to their interest only: Phillips, sect. 789. The breach of warranty need not be connected acquired by migration flagrante bello. [This is with the loss: Phillips, sect. 810. The forfeiture of neutrality by the shipowner or goods shipped by another neutral, and duly documented as such: Phillips, sect. 811. In general the concealment of papers amounts to a breach of warranty: Marshall, C.J., in Livingstone v. Maryland Ins. Co., 7 Cranch, 536. Semble, also, carrying a material paper written in sympathetic ink: Phillips, sect. 809. Throwing papers overboard is not of itself a breach of the warranty, although raising a strong presumption of enemy's property: Bernardi v. Motteux, Dougl. 581; The Pizzaro, 2 Breaches of the warranty. (a) As to what is a proper exercise of the (b) Blockade must be effective, and neutral Attempting to disguise belligerent goods as If during war neutral property be engaged in any branch of the colonial or coasting trade of the enemy that is open to foreigners in time of peace, such property loses its character of neutrality: 1 Kent, Comm. 81-86; The Immanuel, 2 C. Rob. Ad. R. 186. NOTE. This rule is confined to trade between the enemy's colony and the mother country, and is not applicable where the produce of a hostile colony is boná de imported into a neutral country, and thence re-exported into the mother country: (Arn. 574, 4th edit.) Property despatched to a neutral in pursuance of a contract with a belligerent government, or employed by him in a trade for which a privilege is given by a belligerent, does not answer to a warranty of neutrality: The Anna Catherina, 4 C. Rob. Adm. 107. A warranty that a vessel is neutral is not forfeited merely by the supercargo being a belligerent: Mayne v. Walker, 3 Dougl. 79. The employment of a neutral vessel in a service auxiliary to the hostile operations of a belligerent forfeits its neutral character: Ph. s. 822; 1 Kent, s. 149. NOTE.-Kent says, "It is a presumption almost de jure that the neutral, if found on the interdicted waters, goes there with an intention to break the blockade." A master being informed during a voyage to a port that it is blockaded, violates the blockade if he continues his voyage. NOTE. The pursuit of the voyage is, however, open Sailing to a port with a design to enter, if the blockading squadron should be blown off by the winds is a violation of the blockade. The materials of which the ship is made; The qualifications of the captain; The number and description of the crew; The stores, equipment, and outfit generally, The cargo must be properly stowed; If the existing state of things does not comply The warranty requires seaworthiness in con- A vessel seaworthy for one stage of the voyage [Ex. gr., a boiler efficient in fresh water, cracked in salt water-case cited infra.] The enumeration as excepted from the policy The Quebec Mar. Ins. Co. v. The Commercial Bank of Unseaworthiness arising after the commence- Kent. Comm., sect. 288. restored: Phillips, sect. 734. The remedy of a defect after sailing-unless with the consent of the underwriters-does not aid owners of a ship unseaworthy at the time of Forshaw v. Chabert, 3 Br. & B. 158: The Quebec A ship would appear to answer the warranty if If the ship arrives at the port so shattered as to Arn. 604, 4th edit. As to Freight and Cargo. A ship whose condition complies with the war- Phillips, sect. 723, vol. 1, p. 391. The doctrine of seaworthiness does not apply to (2.) Navigation. The captain must be competent to conduct the vessel in safety through all the ordinary perils of the voyage, and in long voyages-not in all voyages-there should be a competent mate : Arn. 615, 4th edit.; 3 Kent. Com. p. 337, n. e. When pilotage is compulsory or customary, a pilot should be on board (a): Phillips, sect. 717. Phillips v. Headlam, 2 B. & Ad. 380; Law v. Hollingsworth, 7 T. R. 160. (a) It appears that failure in this respect would not per se discharge the underwriters. The person engaged in navigating the vessel need not be an authorised pilot if he possesses a competent knowledge of the ground: Phillips, sect. 713. NOTE.-If a pilot cannot be procured, and it is The crew must be adequate and of sufficient skill when the vessel sails: Hicks v. Thornton, Holt's N. P. 30; Forshaw v. If the master takes on board a person representing himself to be a qualified pilot, although in fact he is not so, the warranty is satisfied: Phillips, sect. 374, citing Law v. Hollingsworth, 7 T. A sufficient crew being shipped originally, an occasional disability or absence of the men does not violate the warranty: Busk v. Roy. Ex. Ass. 2 B. & Ald. 73, per Bayley, J. (3) Legal Conduct. An illegal act committed by the assured, or on his behalf, is a violation of this implied warranty. The illegality must induce loss by a peril insured against to violate the warranty. But if the act arise out of negligence or mistake the insurers are not exonerated from consequent loss by perils insured against. The vessel must be furnished with all proper evidence of her national character, for want of which she might be condemned if taken by a belligerent: Phillips, sect. 745; Arn. 619, 4th edit. MERCANTILE LAW. NOTES OF NEW DECISIONS. Bank presented a bill of exchange to B. and Co., the drawees, for their acceptance, accompanied by a ticket representing that the bank held bills of lading to cover it. B. and Co. thereupon accepted the bill, relying on the statement that the bank held bills of lading which both parties thought to be genuine. The bills of lading had been forged by the drawer of the bill of exchange. Held, that B. and Co. were not entitled to demand from the bank genuine bills of lading before paying the amount of the bill of exchange: (Barter v. Chapman, 29 L. T. Rep. N. S. 642. V.C. B.) FACTOR-SALE BY-SET-OFF AGAINST PRINCIPAL" MEANS OF KNOWLEDGE OF BUYER THAT HE DEALT WITH AN AGENT-PLEADING. To a declaration for goods sold and delivered, the defendants pleaded, that the goods were sold and delivered to the defendants by S. and Co., agents of the plaintiffs in that behalf, and entrusted by the plaintiffs with the possession of the said goods, as apparent owners thereof, and that S. and Co. sold and delivered the goods to the defendants as their own, with the consent of the plaintiffs, and at the time of the said sale and the said S. and Co. to be the owners of the said delivery of the said goods, the defendants believed goods, and did not know that the plaintiffs were the owners of the said goods, or of any of them, or were interested therein, or that S. and Co. were agents in that behalf; and the plea averred a set-off against S. and Co. First replication, that before, &c., the defendants had the means of knowing that S. and Co. were merely the apparent owners of the goods, and sold them as agents for the plaintiffs; secondly, the like, but averring means of knowledge that S. and Co. were agents generally. On demurrer to the plea and replications: Held, that the plea was good, without any allegation negativing "means of knowledge" on the part of the defendants that S. and Co. were agents; and that the replications, being therefore immaterial, were bad: (Borries and others v. The Imperial Ottoman Bank, 29 L. T. Rep. 689. C. P.). THE will of Mr. Thomas Wontner, late of No. 3, Cloak-lane, solicitor, who died on the 19th ult., at Weston-green, Thames Ditton, was proved on the 3rd inst. by Mr. Russell Wontner, the son, the sole executor, the personalty being sworn under £5000. The provisions of the will are in favour of testator's wife and four sons. A surety for the debtor upon a bill of exchange deposited as security for a larger debt, if he pay the amount for which he is liable is entitled to the benefit, pro tanto, of the creditor's proof, if made for the whole debt: (Ex parte Holmes, 8 L. J., N. S., 44, Bank; see also Hobson v. Bass, L. Rep. 6 Ch. App. 792.) Killick (Wood and Killick) for the motion. Robinson (C. Berry and Robinson) opposed. His HONOUR.-This is an application made in the bankruptcy of William Moore, of Pudsey, in the parish of Calverley, in the county of York, stuff manufacturer, bankrupt, by Syl. vester Emil Sichel and John Groves, of Brad. ford, stuff merchants, trading as S. E. Sichel and Co., for an order directing that the proof made by Charles Joseph Buckley upon this estate may be reduced to the extent of £780, the amount of the bill of exchange accepted by the said S. E. Sichel and Co., and set out in each of the proofs made by him. And for an order that the decision of the trustee in this matter, rejecting the proof of the said S. E. Sichel and John Groves, upon the estate of the said bankrupt, may be reversed or varied; and that the trustee may be directed to admit the said S. E. Sichel and John Groves as persons entitled to prove upon the estate of the said bankrupt for £628 17s., or such other sum as the court shall direct, or for an order declaring that the said Charles Joseph Buckley is a trustee for and on behalf of Mr. S. E. Sichel and John Groves, in respect of the dividend or dividends to be received by him upon so much of the amount proved by him as is equal to or represents the said sum of £628 17s., or such other sum as the court shall direct; and for an order that the trustee of the property of the said bankrupt do pay it out of the estate of the said bankrupt, and that the said C. J. Buckley do personally pay, the costs of the said S. E. Sichel and John Groves of and inci. dental to this application, and the orders to be made thereon. The application arises out of the following circumstances: Wm. Moore, the bank rupt, in Feb. last, presented a petition to this court for liquidation under the 125th section of Bankruptcy Act 1869, and at the first meeting of creditors, held on the 4th March last, resolutions were passed for liquidating his affairs by arrangement and not in bankruptcy, and Buckley was appointed trustee. These resolutions were duly registered, and Buckley's appointment duly certified. Shortly afterwards the debtor Moors made an offer to Buckley to repurchase his estate upon the terms of paying the trustee's costs, charges, and expenses, all the debtor's preferential creditors in full, aud a composition of 6s. in the pound to all his other creditors by three equal instalments, at three, six, and nine months from the acceptance of said offer, the second of such instalments to be secured by the acceptance by the firm of S. E. Sichel and Co. of the debtor's draft for £780 at six months, and the third of such instalments to be secured in like manner by the aceeptance by Wm. Sharp of the debtor's draft for the further sum of £780 at nine months. And on the 7th March last the said firm of S. E. Sichel and Co. addressed and sent to the trustee under the liquidation the following offer: "We hereby offer to become surety for the payment of any composition which the creditors may accept to the extent of £780, such security to be our acceptance of the debtor's draft for £780, dated on the day of the acceptance of the composition by the creditors, and payable six months after date. This bill to be deposited with the person who may be appointed trustee for the receipt and distribution of the composition." On the 24th March last, at a meeting of creditors duly held under the liquidation by a special resolution then passed, the trustee was duly authorised to accept the offer of the debtor on the terms and conditions contained in an agreement produced at the meeting, and executed and signed by the chairman and trustee, and the committee of inspection are thereby authorised to sign the same as a general scheme of settlement of the affairs of the debtor. And at the same meeting resolutions were duly passed whereby the immediate discharge of the debtor was granted; the liquidation was closed, and Buckley as trustee was released as from the 24th March last. And Buckley was appointed trustee for the receipt and distribution of the composition. On the 1st April last the agreement referred to in the said resolutions was duly approved, and such approval certified by this court as a scheme of settlement of the debtor's affairs under the 28th sect. Bankruptcy Act 1869. The acceptances for £780 and £780 at six and nine months from the 24th March last, were duly delivered to Buckley, indorsed by the debtor, and the arrangements provided for by the agreement were transferred to the debtor, Buckley, as trustee for duly completed. The estate was in effect rethe receipt and distribution of the composition, taking from the debtor his personal covenant for payment of the costs, charges, and expenses, three several instalments before-mentioned, colpreferential debts, and the composition by the laterally secured as to the second and third £780. The legal and equitable effect of this instalments by the two acceptances of £780 and transaction was to rehabilitate the debtor as a trader discharged from all his provable debts at the time of his liquidation, and he accordingly forthwith resumed business 88 & stuff merchant. On the 24th June last the first instalment of the composition became due, and was not paid. And the trustee, therefore, applied to and obtained from this court an order for payment by Moore, which was duly served on him, and payment not being made, an execution was issued against his goods under which they were seized; but upon sale Moore filed a declaration of insolvency, and thereupon a petition for adjudication was presented by a creditor in re spect of a debt incurred since the previous liquidation, and the debtor was adjudicated bankrupt by consent on the 4th July. Buckley was after. wards appointed trustee under the bankruptcy, thus filling the two characters of trustee for receipt and distribution of the composition, and trustee under the bankruptcy. At the date of the bankruptcy there was an open account between the bankrupt and S. E. Sichel and Co. for goods manufactured and delivered by the bankrupt to them, upon which a balance was due from S. E. Siehel and Co. This balance, after some interchange of accounts, was agreed by the trustee at £384 08. 6d., and the trustee applied to this court by motion for an order on S. E. Sichel and Co. for payment, which was resisted by them on the ground that under the 39th section of the Bank. ruptcy Act 1869 they were entitled to set-off, among other items, as a mutual credit, their lia. bility upon the acceptance for £780, treating it as an accommodation acceptance not yet due. It being quite clear upon the authorities that such an acceptance is a credit within the meaning of the statute (see Robson on Bankruptcy, p. 312, note x.), the motion was dismissed. S. E. Sichel and Co., having paid to Buckley, as trustee for receipt of the composition, the sum of £780 upon the acceptance when it arrived at maturity, after. wards carried in a proof for £628 17s. as the balance due upon an account as stated by them, claiming on the one side the £780 as money paid for the use of the bankrupt, the sum of £70 as a premium agreed to be paid by the bankrupt to S. E. Sichel and Co. for the accommodation given by them to him by the acceptance, and the sum of £162 178. 6d. for damages in respect of inferiority of goods sold by the bankrupt to them, making a total of £1012 17s. 6d. Against this sum credit was given for the aforesaid balance in the goods account, £384 Os. 6d., leaving the sum of £628 17s. as due. The trustee rejected the proof altogether, as to the £780, because it had already been proved upon the estate, and S. E. Sichel and Co. were not entitled to receive dividends thereon until the full amount of the composition, for which the same was part security, was paid; as to the £70, that there was no such agreement to pay that sum as alleged; and as to the £162 17s. 6d., that there were no such damages as alleged. As to the last item it has been arranged that, subject to the question of S. E. Sichel and Co. being entitled by law to set-off unliquidated damages, the amount due shall be ascertained by reference to a skilled person mutually agreed upon. Upon the question of the right to set-off such damages, I am clearly of opinion that such right has been created by the Bankruptcy Act 1869, as the necessary consequence of making unliquidated damages proveable debts. These damages will, therefore, be assessed by the referee, but the inquiry before him will be limited to damages in respect of goods delivered subsequently to the date of the petition for liquidation. Damages in respect of any goods delivered previously, would constitute a proveable debt under the liquidation, and be barred by the order of discharge. Ás regards the £70, that is a question of fact depending upon the evidence, and having considered the evidence I have come to the conclusion that the fact is established, and the £70 will therefore be allowed. As to the other ground of objection by the trustee, that the £780 have already been proved upon the estate, and that S. E. Sichel and Co. are not entitled to recover dividends thereon until the full amount of the composition for which the acceptance as part security has been paid, that depends upon the question what was the nature and extent of S. E. Sichel and Co.'s engagement with the creditors under the liquidation, upon the faith of which the composition was accepted by them. Buckley, as trustee for receipt of the composition, has proved for the whole amount of the composi tion against the bankrupt's estate, and that amount includes the two acceptances for £780 proof in respect of either of those sums-the and £780. There can, therefore, be no further only question is how is the trustee's proof to be dealt with? S. E. Sichel and Co.'s liability de pends entirely upon the effect of their written opinion that it extended no further than the engagement of the 7th March, and I am of payment of £780 towards any composition the been made, S. E. Sichel and Co.'s engage creditors might accept, and that payment having ment towards the creditors under the liquidation has been performed, and their liability towards them discharged. The respective rights and liabilities of S. E. Sichel and Co. and the bank. rupt, and those of Buckley as trustee, for receipt of the composition, and the bankrupt are wholly separate and independent of each other, and are unaffected as between themselves by the bankruptcy. If Moore had remained solvent, S. E. Sichel and Co. having paid the acceptance, would have become creditors of Moore for the amount of £780 as money paid by them at his request and for his use. And if Buckley had sued Moore upon the covenant for payment of the instalments contained in the composition agreement, Moore could have pleaded payment of the £780 as a payment pro tanto in satisfaction of the covenant. Now what is the effect of the bank. ruptcy upon these rights? They are plainly these: S. E. Sichel and Co., having paid the £780 as security for the bankrupt would be entitled to prove for that sum against his estate, if proof had not been already made by the holder of the acceptance; that proof has been already made by Buckley, as trustee, for receipt of the composi tion, and he, having already received the full amount of the acceptance, must be deemed to be a trustee of such proof to the extent of the debt (not exceeding £780), due upon the balance of the mutual credit account to be taken between S. E. Sichel and Co. and the bankrupt's estate, the £780 forming an item in that account. The case of Ex parte Holmes (8 L. J., N. S., 44 Bank.), afterwards affirmed on appeal by Lord Cottenham, relied upon by Mr. Killick, is an authority expressly in point; and the recent case of Hobson v. Bass (L. Rep. 6 Ch. App. 792), recognises and supplies the principle. In the present case no dividend has been received, and the order will therefore be as follows: Declare that though C. J. Buckley is a trustee for and on behalf of S. E. Sichel and John Groves, in respect of the dividend or dividends to be received by him upon so much of the amount proved by him as his equal to represent the sum of £628 17s., or such other sum as shall be agreed to be the balance due upon the mutual credit account between S. E. Sichel and Co. and the bankrupt's estate, after ascertaining the sum to be allowed for damages in respect of goods supplied by the bankrupt to S. E. Sichel and Co. since the date of his petition for liquidation, such balance to be ascertained and settled by the registrar in case the parties shall be unable to agree upon and to offer the same. Buckley to pay the costs of the said S. E. Sichel and John Groves of and incident to this application, and to be allowed the same, and to restrain his own costs out of the funds on his hand as trustee for receipt of the composition. The costs to be taxed by the registrar. BRISTOL COUNTY COURT. 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