Newburgh Bankruptcy Case

Manawatu Times, Volume 63, Issue 183, 5 August 1938, Page 8

Newburgh Bankruptcy Case

Heavy Losses Shown ENTRIES MADE “WITHOUT RHYME OR REASON” Per Press Association. CHRISTCHURCH, Last Night. When the adjourned bankruptcy proceedings in the estates of Thomas Newburgh and Sons, sharebrokers, of Christchurch, and of the late Thomas Newburgh and his son Eric Pryce Newburgn, were resumed this morning, the official Assignee. Mr. G. W. Brown, said that he would have to refer details to the Crown Solicitor to see whether, in his opinion, an offence had been com mitted. A report was read to the meeting from Mr. W. H. Nicholls, accountant, who investigated the affairs of the estates. City Extensions, Ltd., it was stated in the investigator’s report, was merely a puppet. % Investigations of the books of Ralph Newburgh, Ltd., disclosed that its transactions related mainly to mining companies which were unsuccessful. Very heavy losses had fallen on Thomas Newburgh and Sons by virtue of the fact that the firm had financed these speculations. It was impossible to state the amount of the losses, owing to the way in which the records had been kept. There appeared to be no accounts for either Metals. Mining and Investment Corporation, Ltd., or Mining House (London, Ltd.), so it was impossible to show how £4357 19s for the former company and £833 6s Sd had been disbursed.

As indicating the extent of the moneys invested by the firm in the many mining speculations handled, the report showed that an amount of £7875 19s 4d was shown as the present assets of the firm. Actually a sum total of nearer £IO,OOO in cash expenditure had been involved. Entries had been credited to various accounts without apparent rhyme or reason. After reading the report the Official Assignee suggested that the creditors might like to question Eric V. Newburgh, but he added that they should not comment on the evidence, in view of the action he proposed to take in referring proceedings to the Crown Solicitor. A motion that the questioning should not be allowed failed to find a seconder and after minor matters had been answered by Newburgh the hearing was adjourned. More than 50 creditors were present.