LORD CHELSEA'S AFFAIRS.

Evening Post, Volume LXXXIII, Issue 20, 24 January 1912, Page 3

LORD CHELSEA'S AFFAIRS.

■ — ' ♦ BETTING, GAMBLING,, AND BORROWED MONEY/ PRESENTS TO FRIENDS. [fbom our own correspondent.] LONDON. 15th December. • The affairb of Gerald Oakley Cadogan, Viscount Chelsea, who has been adjudged a bankrupt, show gross liabilities of £64,41.4 and assets £2375. The bankrupt, examined s by the Official Receiver, ' said that since 1904 he had been dependent on hie father. Lord Cadogan. In May, 1910, he was adjudged • a bankrupt, but in the "following July the order of adjudication was annulled on the ground that all the debts had been paid in full. His present insolvency was due to his income having been insufficient to meet his household and personal expenses, to losses by betting and gambling, and to excessive interest on borrowed money. Before 1893 his father had paid considerable sums in settlement; of his debts, and in that year he paid debts to the amount of £2000. In 1900 his father again paid his debts, amounting to ' several thousand pounds. In June, 1909, his father exercised a power of appointment over a portion of a sum of £180,000, which was charged on the family estates for the benefit of younger 'Children 1 , and a sum of £7500 was raised, which was also applied in paying his debts. All that time ' his father was making him an allowance, of £500 or £700 a year. To a large extent his debts in the past had been in respect of betting and gambling losses and money obtained from moneylenders for the purpose of settling debts ot honour. His household and personal expenditure since 13th June, 1910, was stated 'in his • deficiency account at £10.083, but he thought .that this- sum included £4524 foe presents to his wife just before and at the time of his marriage, and £5000 for furniture, which was now valued at £800. THE CREDITORS. He lost £1000 on the purchase and sale of hunt ere. Since August, 1910, his allowance from his father had been increased to £2500 a year. He now Owed £24,647 to moneylenders, £14,483 to other cash creditors, including £13,233 due to his father in respect of the payments made to get rid of the bankruptcy in 1910 ; £10,000 for jewellery for presents, and £3000 for furniture and decorations to his flat. His statement of affairs also included £10,000 not expected to rank' for dividend, due on two bills of' exchange, which he accepted in October, 1910. He accepted those bills because , someone advised him to purchase fifteen shares, of £500 each in a company called the Newfoundland Chartered Company. He never received the share*, and a 6 far as he knew there wa6 no such company in existence. He received no consideration whatever for giving the acceptances. The Official Receiver : Would you suggest they were obtained from you by fraud?— l shbnld certainly say m. Hi 6 deficiency account showed a loee of £500 incurred by betting since June, 1910, at race meetings. He became next in succession' to the family estates in 1910, but in December, 1893, he had sold his contingent reversionary life'interest in the settled family estates to his father for £2000, which went in settlement of. his debts. There was a valuation made of his interest by two well-known actuaries. On 18th 'June, 1894; his father re-settled the interest upon him (the bankrupt) for life, such life interest to terminate on bankruptcy, alienation, or attempting to charge* it In August, 1910, he executed a deed charging his interest in the settlement to his' father to secure the £13,233 then paid. He should certanly say that his father did not get any personal benefit from! the purchase of the life interest in 1893. Since that date the total amount paid on his behalf by bis father was about £30,000.