BANKRUPT DUKE

Greymouth Evening Star, 12 August 1936, Page 11

BANKRUPT DUKE

WEALTHY MARRIAGE PLAN

LONDON, June 2-1.

The statutory first meeting of creditors under a receiving order against Edward Fitzgerald. Duke of Leinster, described on a creditor’s petition as of Portland-place, W., was held yesterday at Bankruptcy Buildings, Carey Street.

Mr L. A. West, Senior Official Receiver, dealt with proofs of debt totalling £22,122. No statement of affairs had yet been filed, he said. The receiving order was made on May 26, but there was a stay of advertisement for 14 days at the Duke s request so that he might try to make some arrangement. No arrangement was made. The Duke had already been adjudged bankrupt on four occasions. On the first two, in 1914 and 1915, the adjudications were annulled and the receiving orders rescinded, the debts having been paid in full. The Duke had stated that, since his last failure, he had had no business or occupation and had been dependent on a voluntary allowance from the purchaser of his life interest in the Leinster estates. The allowance had averaged £1,200 a year, and between 1922 and 1929 he had lived within his income.

In 1929 there were divorce proceedings, and a decree absolute was made in 1930. In the winter of 1929 the Duke went to New York, where, he said, he entertained lavishly. Forthat purpose he borrowed £12,000 to £15,0U0. It was apparently in respect of those commitments that he was now in difficulties.

TOTAL LIABILITIES £109,000. He was contemplating matrimony with a wealthy widow. He entered into those heavy commitments on the strength of possible funds becoming available for him from that source. He had not lived beyond his income during the past three years. During the past two or three years negotiations had been proceeding with a view to the repurchase of the life interest in the Leinster estates. The idea was to resell and obtain money to pay the Duke's debts. Nothing had transpired. “Therefore, so far as one can see to-day,” said the Official Receiver, “there are no assets except such as may be obtained from that scheme, the details of which I know nothing.” Mr W. G. Curtis, on behalf of the Duke, said he proposed an adjournment for a month to enable him to submit a scheme of arrangement, either with the help of the Duke’s family or from that other source which the Official Receiver had mentioned. The Official Receiver remarked that it. appeared to him not quite fair to call the creditors together again unless there were something- more tangible than that mentioned.

A resolution for bankruptcy was passed, the Official Receiver undertaking to obtain a long date for the application for adjudication. Mr F. S. Salanian, chartered accountant, was appointed trustee of the Duke’s estate.

In reply to a question, the Offical Receiver said that, including unsatisfied liabilities in previous bankruptcies, the liabilities amounted to £109,000.