Mortomley's Estate: A Novel. Vol. 3 (of 3)Riddell, J. H., Mrs.
General
Mortomley's Estate: A Novel. Vol. 3 (of 3)
Riddell, J. H., Mrs.
Bankruptcy -- Fiction; England -- Fiction
At that especial half-yearly meeting, however, of which mention has been
made, there were very few dupes connected with the General Chemical
Company, Limited. All the new shareholders indeed, and a very small
proportion of the old might, it is true, have faith in the concern, but
as a rule the directors and the shareholders, the accountants and the
officials, knew the whole affair was a farce, got up for the purpose of
inducing the general public to invest their money in a concern with
which those privileged to peep behind the scenes were most heartily
disgusted.
Like many other debts of lesser magnitude, Mortomley's had not yet been
entered as bad. His account was kept open, in order that the ample
dividend promised by Mr. Swanland at the meeting of creditors might be
duly entered to his credit. Meanwhile his unpaid acceptances were still
skilfully manipulated as securities, thus:--On one side the books, that
everything might be done strictly and in order, appeared the entry,
"Bills returned, so much, interest thereon, so much," very little
interest being charged, the reader may be certain; and on the other,
"Bills retained, so much," which really made the bankrupt's apparent
debt to the concern when a balance was struck something merely nominal.
On the same principle, when a dividend of six per cent. for the half
year was recommended, as the profit, admirable in itself, had the slight
disadvantage of existing in paper instead of hard cash, the amount
required was paid out of capital--"loaned out of capital," as Mr. Forde
cleverly defined the transaction; and next day the shares were quoted in
the 'Times' at a premium, and those most interested in the concern shook
hands and congratulated themselves that the meeting had gone off so
well.
In fact, the worse trade chanced to be at St. Vedast Wharf, the more it
behoved those connected with the establishment to put the best face on
affairs, and, to their credit be it spoken, they did. Indeed, but for
the revelations of clerks and the sour looks of certain bankers when the
Chemical Company was mentioned, even City folks would have had but a
very vague idea of the struggle St. Vedast Wharf had to maintain in
order to keep itself above water. Poor Mr. Forde knew most about that
struggle, and so did those unfortunates who were desperately holding on
by the piles of the rotten structure in order to escape drowning; but,
though none of them realized the fact, it was just as true that St.
Vedast Wharf could not go on keeping up false appearances for ever--as
Mortomley had found it, that to carry on a business with men in
possession was not a game capable of indefinite prolongation.
Public-domain text, read in full here on John Shaqi.
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