Sorry to take ten years to reply to this thread, but after a bit of poking around I think we now have answers to most of the questions posted here. See
https://www.douglasmotorcycles.net/index.php?topic=6560.0;allThanks to Howard for kicking the topic off with the important observation that both Fairy and Douglas were advertising at the end of 1907. He wonders "... when Douglas Bros actually took over The Fairy Motor Co?". The answer is NEVER, the Fairy Motor Co. seems to have died a quiet death, motor-cycle-production-wise, in the latter half of 1908, more than 18 months after Barter left Fairy to go to Douglas, where he designed and brought to production a new flat-twin motorcycle - The Model A Douglas. There are many, many books and articles that tell the story of Douglas taking over the remains of the Light Motors Ltd - the story is incorrect.
Graeme asks whether any of the large Fairys sold. The answer is "yes". It's not clear how many were made between when they were first mentioned in the period literature (at the formation of the first Light Motors Ltd. in December 1905) and mid 1908, but there are photos of three different bikes, mention of one seen at a hill climb in the UK, one privately for sale in the classifieds of the Motor Cycle in 1910, and even one reported at an event in Sydney in May 1910 in the hands of V. St. Clair. So while Clew says "it is alleged that only one was made", I'd say there were definitely four, and there might have been as many as 10-20?
Eddie makes a very good point: "By 1907, Barter was working at the Douglas factory - so, maybe, the trading name 'Fairy' had been sold or relinquished by Barter." Yes it had. Doug has the documents to show that the original Light Motors Ltd. was sold and a new entity with the same name, but a London address (180 Grays Inn Road), was incorporated on January 4th, 1907. Barter also refers to the sale of Light "to London interests" in a 1930s memoir in a Bristol newspaper.
Eddie also asks: "Was this machine anything to do with the 'Fairy' that developed into the Douglas?" Yes, and no. Barter's 1905 Fee developed into the 1906 Fairy, which developed into the 1907 model Fairy, and then into the 1908 model Fairy. I don't think we can prove it, but it's likely that Barter left Fairy at the time of the sale of Light to the London interests in January 1907, so while the Fairy developed beyond this date it was without Barter. Presumably Barter spent 1907 at Douglas developing a new motorcycle, the Model A, which debuted at the Stanley Show (with the fabulous V Four) in November 1907.
Last, it is Michiel who gets the prize for recognising that the tradition story "... that Joseph Barter went bankrupt in early 1907 and merged with Douglas to produce the first prototype of the Douglas twin later that year ..." is incorrect. He goes on: "It seems more and more plausible that his own company was sold off, probably including stock, patents and drawings and formed the basis for the Fairy Motor Company of Blackheath, London." Almost perfect Michiel! There was another company "Light Motors Ltd., London" in between, but the general idea is correct, and we now have enough information to confirm this version of the story.
We can help Michiel with his concern about magnetos, because the post-Barter Fairy sold during 1907 used coil ignition, so a coil ignition prototype Model A would have matched the Fairy spec. Both Douglas and Fairy motorcycles at the Stanley Show in November 1907 had "new" magnetos; clearly the Bosch magneto salesman had been knocking on doors in Bristol and London during the year.
Michiel concludes: "And that leads me to the conclusion that the Fairy Motor Company did more than just sell off some old stock: they were building brand new motorcycles based on a proven design!" Yes, they were!
(Can we post replies about Fairys on the other thread, so we don't have two active Fairy threads at the same time?)
Cheers
Leon