LOSS OF £1,000,000

Poverty Bay Herald, Volume LXIII, Issue 19129, 25 September 1936, Page 12

LOSS OF £1,000,000

BANKRUPT BARONET .'CAPITAL DISAPPEARS ‘" DISCHARGE GRANTED LONDON, July 14. ’"Sir Arthur Philip du Cros appeared ■at London Bankruptcy Court yesterday, when he was granted his discharge from bankruptcy. - Mr. C. T. Newman, assistant official

receiver, said that the order oi ad

judication was made on June 4, H'<>s, % and, according to the report of the trustee in the bankruptcy, the proofs of debt and probable claims amounted .together to approximately £SG,OOO. ■• - "The- assets disclosed by Sir Arthur consisted of shares, on which no value was placed, and book-debts, £—7,04(», which were not estimated to produce anything. - They included £26,541 alleged to be due from the petitioning creditor. The • iibstee expected that there would be a total realisation of £1287, but, pending the final determination of the amount •of the claim for supertax and tU e P ov ' tion, if any, payable preferentially, lie was unable to state whether any dividend would be paid. /'-Sir Arthur attributed iris insolvency . to losses arising from the failure of the Austin Friars Trust, Limited, and of the Parent Trust and Finance Company, Limited, whereby he lost remunerative appointments and capital; losses through depreciation in investments and the exploitation of patents; and his liability under a judgment obtained against linn by the petitioning creditor, respecting which, he contended, lie hau a eounteiclaim exceeding £26,000. „ £1.000,000 LOST

Sir Arthur bad asserted that, apart from the petitioner, none oi the creditors returned in liis statement of attans had pressed or was likely to press him for payment. ~ -The official receiver said Jmt air Arthur accounted for the dispersal and louk-of his capital of approximately £1,000,000, winch he possessed 111 1919, —FirsL period, between 1919' and 1929 : •Family gifts and settlements £275,000. , . Charitable and other gifts £50,000. <rr Amounts expended between 1919 and 1922 on the Oraigwell House property to complete reconstruction- in accordance ' with an arrangement with Parti ’Estates Limited, £115,000. Loss in connection with yacht Emerald iiflOjOGOv; Capital losses on sale and depreciation" fif* investments, i ess estaMjed profits on other transactions, £505,000. Second period, from beginning ot 1929: "Loss on participation with Austin Friars Trust “group” £52,000. . Loss of share capital in the “parent company £23,500. “Losses on realisation oi securities to defray liabilities £20,000. ’fjundrv - payments out of capital, including ’ £I3‘,COO personal expenditure in excess of income £35,500. Otr February 7, 1935, Sir Arthur instructed his * solicitors to consent to judgment 011 his behalf in an action brought against him by a Mrs. Leloir, the petitioning creditor, and on February.. 14 judgment was accordingly given against him. ‘ ? a>ULD NOT HAVE DONE MORE” Sir Arthur said that the report of the official receiver was fair and aeciuateL Tlie financial trouble winch overtook him so suddenly in 1929 was not of Ms own 1 making, and arose from circumstances quite ueypnd his control ’ He’submitted that, in face of tiie difficulties which lie was forced to meet, he-coaid not have done more than he did to meet the situation. He' gradually realised everything he possessed,, and worked unremittingly to Diy off outstanding liabilities amounting to" nearly £75,000. In the end he was successful in .doing so. . . " Mr. Registrar Parton said that he thought it was a fair comment on the case to say that, except JOl- the claims of -the netitioner and her mother, it was to a very large extent a family matter. There, was .no. suggestion of dishonesty againat Sir Arthur, and he thought that he ought to grant the discharge, subject to'a suspension, the F°P« period of which would be six months to date from March 27 last, when the application originally came belore the court.