A COMMERCIAL ROMANCE.

Wairarapa Daily Times, Volume VIII, Issue 2313, 5 June 1886, Page 2 (Supplement)

A COMMERCIAL ROMANCE.

EXTRAORDINARY DISCLOSURES,

The special correspondent of the Christ-church Press, under date Melbourne, May 3rij, sends the following: —A most extraordinary case came before the Insolvency Court last week,

when Henry Henty appeared for his certificate of discharge, though unable pay the statutory dividend of 7s in ■fv the £. He is member of a firm who recently went bankrupt, after'being in business for 35 years, much to the Burprise of all Victoria. On applying to the Omirt lor his discharge, h» filed in .afouttv.t disclosing the state of affairs by winch his brother, Henry Henty, had in ;-.» ■■ <.r three years completely ruined ilio business, which ym worth £90,000, and further involved it in liabilities amounting to at least £200,000. Henry Henty had known his brother's fondness for speculation, and before going to England ht warned him to conduct the business only on safe lines, but Herbert entirely neglected the warning, with the result ■tiled. In granting the application for the discharge of the bankrupt, the judge then summarised the effect of the affidavit tiled by Henry Henty in support of the application:—"This is • most remarkable case It reads like t romance. The sequestration was made in November last year. On the 2nd March. 1882, the insolvent visited Europe, going to England, and returned in Match, 1884. When he left „. in 1882 ho was possessed of £1)0,000. f Tlie items of that sum are specified in the affidavits with great minuteness and care, The balance sheet which has been laid hefore me, nhowing more than solveuce up to Jims, 1882 after he left England, wns sent to him in England. His 'brother was a partner at that time, and contrary to special directions to the conduct of tlm business, he entered into large speculations, alloue I a Mr Bowman to get into the former's debt tn the extent of £40,000, Biiwma.i has since seques'rated his estate, ami ilm linn has 104 £20,000 by the sequestration. 1 need not go thoroughly into the items. It seems that the firm had a liss on Luke Williams and Co.'s failure of simethiii',' like £57 000, The brother "No gave . sdv«nceß to Neill Bros, of Dunedin,

whereby »sum of ,£9,000 was lost. To

Mr I'slton also the brother advanced ( X taking as security a ntmion Tin Quoeneland valu-'l lit J&i.OQO i This station Imp sinco become wuri \\\m owing. t« drought. I'y H. Mortiiwf Franklyn's nmnagoini'iit us editor of the Federal Australian and World nwipapew tb proprietors o&int to!

own £13.000 wtthoiVt liny security, liut.ilu' piiruicr liiiil aim vmi : (! and endorsed promissory notes in favnr oi the newspaper lo ih« tune of i'40,00(1 of the expenditure of which, I may iifld, there is no trace at nil. These ■i'Htoim'nls are'trne, and inasmuch as tlwcft is no contradiction t;iven tn idem and no iimendo oven that, they are unrlnlv colored or exaggerated, lam hound lo accept the truth of thorn, and I lien I can only express uiy amazement .tit the reckless steering of this tine business on the rocks of bankruptcy. It was put into this position it appears by gross- mismanagement. That is too easy a'word, by the malversation, I might say, of the partnership property in the insolvent's absence, and against his distinct and reiterated instructions. To hold the insolvent responsible tor the want of a dividend of 7s in the £ would be in the highest degree unjust. I grant the unconditional certificate."