More Fraudulent Trustees.

Evening Star, Issue 6915, 30 May 1885, Page 2 (Supplement)

More Fraudulent Trustees.

In the High Court of Justice, Chancery Division, on March 13, before Mr Justice Kay, the case Garstang and Brogden v. Mayson came on. This was a petition asking that the action in this suit might be wound up and all further proceedings stayed.—Mr Pearson, witli whom was Mr Mulligan, stated that he appeared for Messrs Alexander and Henry Brogden, who were trustees of the trusts of James Garstang, and having power by the will to invest the trust funds in shares of incorporated eomEanies, they advanced to tho linn of John irogden and Sons, of which they were partners, upwards of LBO,OOO, the security being shares in tho firm. In July, 1881, the firm was dissolved, the business being carried on by Messrs Alexander and Henry Brogden ; but in December, 1883, they went into liquidation, when it was discovered that the liabilities were L 569.839, and the assets only L 3.800, By the compromise now asked for by the petition the Court was asked to make an order staying all further proceedings in the action, and to allow a Mr Judd to purchase the balance of the sum due to the estate of the late Mr Garstang for L 1,203, and to pay tho costs. Mr Hastings, Q.C., for the infants, assented to the proposed arrangement.—Mr Justice Kay remarked that it was evidently a gross breach of trust, that it was a robbery of trust funds, for which these gentlemen each deserved a term of imprisonment. Did anyone wish to punish these delinquent trustees ? —Mr Hastings said there was no such wish, and to continue the action would only be to waste more money.—Mr Justice Kay then granted the prayer of tho petition.