BANKRUPT FIRM

Wanganui Chronicle, Volume 80, Issue 87, 13 April 1938, Page 8

BANKRUPT FIRM

LATE OF SUMNER

MEETING OF CREDITORS

| Per Press Association.] CHRISTCHURCH, April 12.

A deficiency of £16,442 10s 2d in the firm of Thomas Newburgh and Sons was shown in the financial statement read to a meeting of creditors held this morning. In addition to the affairs of the firm, the meeting also dealt with the estate of the late Thomas Newburgh, a former Mayor of Sumner and a well-known city sharebroker, and with the estate of his son, Eric Pryce Newburgh, a partner in the firm. The official assignee (Mr G. W. Brown) presided over an attendance of about 50. There were numerous solicitors present, and also several city accountants. In the case of Eric Newburgh, bankrupt s statement was to the effect that he was able to pay his debts. His reason for filing was the fact that he was liable as a partner for the partnership debts of the firm. Mr Brown informed the meeting that following a Court order placing the Thomas Newburgh estate in his hands he had suggested to Eric Newburgh to file on the ground that such action would make the handling of the position less difficult. Eric Newburgh had agreed to that course. The financial statement covering the affairs of the firm of Thomas Newburgh and Son was set out as follows : Assets —Book debts, sundry clients, £25,251; shareholders, £20,319; total, 145,570; cash in hand, £233; furniture, fittings and car, £1045. Reai property, equity in an Invercargid property, £11,665; in Sumner and Aikmans Road, £4603 7s 9d (less secured £3000); investments, £10,875. Debts and Liabilities.—Sundry creditors and clients, £33,326; sharebrokers, £30,855; a total of £64,181; Bank of New Zealand, £10,501; stock, £12,754; general total, £87,437. The deficiency was shown as £16,442.

The amount shown by Eric Pryce Newburgh as owing to unsecured creditors was £34 12s Bd, secured creditors £134 5s 9d, less the estimated value of the securities at £3OO. Total assets of £227 13s lid were made up of £55 stock, £6 19s 8d cash in the Post Office and in hand £165 14s.

Valuable Stamps.

Mr Brown said that as far as the estate of Thomas Newburgh was concerned for the time being he had not a very complete set of information. A certain amount of information regarding the assets was available. This showed that insurance due totalled £13,145. It appeared that the widow would be entitled to a certain insurance money, so that all the money would not pass to him as administrator in the estate of Thomas Newburgh. In addition to the insurances he had information concerning a stamp collaction. That collection was reported to be of considerable value. He had stamps in his possession, but would have to have the collection listed and valued. Regarding the liabilities, he was not aware as yet what would be the total amount. He had had notice from the National Bank, together with proofs of debt, in which the bank claimed £2367 Is Od was due from Thomas Newburgh, who had apparently been a guarantor. Book Value of Assets. Mr Brown emphasised that the list of assets was taken from the books and represented book value, and not what the assets would produce on realisation. He thought it would be found that some ot the debts owing would be irrecoverable. Scrip in various concerns seemed to bear a fictitious value.

Mr Brown thought some of the items would be either worthless, or that they would realise very little. The liabilities included sundry creditors £13,818 8s under the heading of the Thomas Newburgh No. 3 account. The particulars he had about that were rather vague, said Mr Brown. He understood it was linked up with a transaction Thomas Newburgh had entered into called the Metal Mining and Investment Corporation. The unsecured creditors’ total would be augmented to the extent of several thousand pounds; for example, he had had notice of one claim for £4500, and the amount owing to the creditor was shown in the statement as £287 15s. The amount in another instance was £73 18s 2d, compared with the creditor’s proof of debt for £6875; a third creditor w'as listed for £76 14s lid, and his claim was for £1829, while another who w’as listed at £5 had, Mr Brown understood, the right to claim for between £7OOO and £BOOO. These amounts would give some indication of the serious discrepancies in the amounts of the records and the claims that would actually be lodged. Mr Brown remarked that it was due in part to the fact that his clients accounts had been debited with the price of the shares, notwithstanding the fact that in some cases they hau not received the scrip. In connection with the Bank of New Zealand’s holdings, it appeared evident that scrip and stock belonging to his client.,, which he had reason to believe had been lodged with the firm for safe custody, had been lodged with the bank in support of the overdraft. Mr Brown enumerated the profit and loss of the business since 1931 as follows:—The 1931 profit, £1909; 1932 profit, £1015; 1933 profit, £103; 1034 profit, £721; 1935 loss, £B9; 1936 loss, £1283; 1937 loss, £2444. The questioning of Eric Newburgh was left over until a later meeting and this morning’s business concluded with the appointment of Messrs R. L. Bush, A. S. Nicholls, C. Bashford, W. H. Nicholls and J. D. Benton as a committee to assist the official assignee in the administration of the estat*