LOSS OF £1,000,000

Evening Star, Issue 22460, 3 October 1936, Page 14

LOSS OF £1,000,000

BANKRUPT BARONET CAPITAL DISAPPEARS Sir Arthur Philip du Cros appeared at London Bankruptcy Court, when he was granted his discharge from bankT. Newman, assistant official receiver, said that the order of adjudication was made on June 4, 1935, and, according to the report of the trustee in the bankruptcy, the proofs of debt and probable claims amounted together to approximately £85,000. The assets disclosed by Sir Arthur consisted of shares, on which no value was placed, and book debts. £27,046, which were not estimated to produce anything. ~ , . , They included £20,341 alleged to be due from the petitioning creditor. The trustees expected that there would be a total realisation of £1,287, but, pending the final determination of the amount of the claim for supertax and the portion, if any, payable preferentially, he was unable to state whether any dividend would be paid. _ Sir Arthur attributed his 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 j losses

through depreciation in investment# and exploitation of patents; and _ bis liability under a judgment obtained against him by the petitioning creditor, respecting which, he contended, he had a counter-claim exceeding £26,000. £1,000,000 LOST. Sir Arthur had asserted that, apart from the petitioner, none of the creditors returned in his statement of affairs had pressed or was likely to press nim for payment. • The Official Receiver said that Sir Arthur accounted for the dispersal and loss of his capital of approximately £1,000,000, which he possessed in 1919, as follows: — First period, between 1919 and 1929:; Family gifts and settlements, £275,000, Charitable and other gifts, £50,000. Amounts expended between 1919 and 1922 on the Craigwell House property to complete reconstruction in accordance with an arrangement with Paid Estates Limited, £115,000. Loss in connection with yacht Emerald. £BO.OOO. Capital losses on sale and depreciation of investments, less estimated profits on other transactions, £305,000.Second period, from beginning of 1929; . . . B , , Loss on participation with Austin Friars Trust “ group,” £52,000. • Loss of share capital in the “ parent ” company, £23,500. _ < Losses on realisation of securities t® defray liabilities, £20,000. Sundry payments out of capital, including £13.000 personal expenditure in excess of income. £35,500. On February 7. 1935, Sir Arthur instructed his solicitors to_ consent to judgment in his behalf in an action brought against him by a Mrs Leloir, the petitioning creditor, and on Eebrudry 14 judgment was accordingly given against him. “COULD NOT HAVE DONE MORE.” 'Sir Arthur said that the report of the official receiver was fair and accurate. The financial trouble which overtook him so suddenly in 1929 was not of his own making, and arose from circumstances quite beyond his control. He submitted that, in face <Sf ; th* difficulties which he was forced to meet, he could not have done more than ho did to meet the situation . He gradually realised everything ho possessed, and worked unremittingly to pay off outstanding liabilities amounting to nearly £75,000. In the end ho was successful in doing so. Mr Registrar Parton said that bo thought it was a fair comment on the case to say that, except for the claims of the petitioner and her mother, it was to a very large extent a family matter. . There was no suggestion of dishonesty against Sir Arthur, and ho thought that ho ought-to grant tho discharge, subject to n suspension, tho proper period of which would be six months, to date from March 27 last, when the application originally cam® before the court.