A Melbourne Insolvency.

New Zealand Mail, Issue 1424, 15 June 1899, Page 15

A Melbourne Insolvency.

INTERESTING EXTRACTS FROM LETTERS.

Matters relating to the case of Alfred Fenton, James Tunstall Fenton and Arthur Fenton, trading as Alfred Fenton and Sons, of Melbourne and Jolimont, and also of Staffordshire, England, china and earthernware manufacturers and merchants, were further investigated before Judge Moles worth in the Insolvency Court. Arthur Fenton, a member of the insolvent firm, was examined by Mr Pigott on behalf of the trustee, and stated, in answer to questions, that lie was not 'aware of the financial position of the English branch of the business during the last six years. Although his brother James, in England, was always grumbling about the emporium carried on by witness in Melbourne, the business was always paying up to last year. Possibly, his brother grumbled in order to screen himself and blame witness. Mr Pigott: Here is a letter dated May, 1897, from your brother James, which he starts as follows:—“Dear Everybody.” (Laughter.) Judge Molesworth: That must have been meant for all mankind. Witness: It- was meant for the family. Mr Pigott: In that letter he says : “You must get some excuse re balancesheet.” Wliat diu lie mean by that? — I believe that letter was in reply to one from me asking him for a balance-sheet. Then he goes on—“lf I did make a bal-ance-sheet I would only cook it.” V hat did he mean by that?—That he would only have to jump at conclusions. All this time you considered the English branch perfectly solvent ?-—I did not know that it was insolvent. Would you be surprised to hear that the assets in England available for distribution only amout to about £2oo?—lt would surprise me very much. In July, 1897, your brother James wrote a letter in which he spoke of the parable of the man, the boy and the ass. (Laughter.) Who was he referring to?— i’m sure I don’t know. Have you ever struck out from.or obliterated anything in, any cf the letters handed over by you to the trustee?—On receipt of a letter I would make a note on it before sending it to my father at Jolimont as to any statement I considered to be incorrect.

In another letter, written in August, 1897, your brother James says: “We must improve this year, or we are rotten.”— He must have meant that if we did not succeed we were very incompetent people. Then again—on 11th February, 1898—he writes, expressing the hope that Arthur will “not play the doll trick with the bank.” What is "the meaning of that ? I don’t know; he may have been referring to dolls—marionettes. He knew that the emporium was your property? Yes; but I had told him he would have a share of the profits. I never sent him any such share. I have never had any myself. In April, 1898, he writes:—“l could pull through if your letters did not harass me so much. There are moments when my breath seems suspended. I fear paralysis and death.” In another letter he says: “The peace of God, we are told, passeth all understanding. Arthur’s

treatment of me- is like the peace of God.” (Laughter.) He adds, “I am going to Manchester to buy glass; to raise the wind.” What did he mean by that?— He meant that there were firms in Manchester who would help him.

In a letter dated i2th May, 1898, your brother James says, “Oh, Arthur, Arthur! Why did you buy the damned business of C. and H. ?’’ Who were C. and H. ? Cozens and Harvey. A letter written by you shortly afterwards contains this statement: —“At present. I see no chance of ever paying our way”—“Even paying our way,” is what I wrote.

If you had written “ever” it would have been equally true?—lt would not. Then you wrote again: “As for keeping open the business for you, I am at my wits’ end, and I almost despair of getting through at all.” Do you still say you thought the firm was solvent at that time?— Yes at that time the whole position depended upon the question whether the Union Bank would let us go on. There is another letter written by you, in which you say you dred having to borroiv money to meet each days’ engagement. This was in September, 1897. Were you at that date able to pay your debts as they fell due?—Yes. We could always count- on friendly assistance. Coining to the sale of certain stock to Walla oils’, is it not true that in regard to it you deceived Mr Paxton, the general manager of the Colonial Bank? —Mr Paxton may have been deceived, but I never intentionally deceived him. Was not the emporium as much the firm’s business as the Pearson Pottery Company was?—No. The Pearson Pottery Company was the absolute property of the firm One of the receipts from the sale of certain st-oclc to Wallaclis, did you pay a cheque to Kilpatrick and Co?—hes. When did your transactions with the firm commence ?—About- a year before the sequestration cf our estate, when a loan of £250 was obtained at 8 per cent., on behalf of the firm of Alfred Fenton and Sons. After further evidence had been given the examination was adjourned until 12th nrox.

Mr Eagleson. instructed by Messrs Madden and Butler, appeared for the witness.—“'Age.”