The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-12-13


coming from the bank through Morton and Matthew to
the ever needy Hay III 1876 Hay had got close upon
fe260O0 in this way and Matthew. who was receiving
benefit from these transactions, was DESTROYS or
putting end TO the system. So was Hay and 50
was Morton. who said the thing increasing
load round his neck, but he said the bank did MOI
wish il stopped. Matthew was asked
What interest had they in the This Is the first
%s na we sgs had ns c o. saS ys sen
direct from the City Bank FL cannot say where he goa
What interest had the City Bank in Hay Son going
on n, ne go. % ns iron hs Se , S ~ 20
pG seSss s OF G s senior o as a
ana was also partner Of Matthew, Buchanan 8 CO
a. eppass s se.
have the effect d bringing them down Yes
have affected Matthew Buchanan 90. t-The two hrms
oq' sss sns sn arga
operations in behalf Of James Morton Co. and the cry
You partner quite con,ersant with all the trans
actions OF both Arms s-Yes
.ssErTIING up THE FIRM.
Matthew, Buchanan Co. had been started in 1868,
with faOOO Of the banks money, and the firm was
used almost entirely for financial purposes At the
request OF the late Alexander Stronach. manager
of the bank and brother OF Robert Stronach now in
prison. the Arm after being hoated negotiated
credit OF ESQ 900 against certain securities held by
third parties, and that system went on increasing
until bills amounting to E1,2o0,0OO were hoated in
this way.
that given You in 1865 may have been on
iu 1879 Yes part OF them we're on circle
II was just finance kept and increasing, and never
being paid of Yes.
To turn again to the relations Of Matthew & Thel-
mann with the Hays. In 1sTG the latter were so
deeply involved that it was impossible for them
even to pay the s225. 900 against them in Matthew
Ihieimann DOCKS, anu ~ Was agfeea On ane aasice
the surplus OF the Hays assets the liabilities
to outside creditors being assigned TO them This
estimated at 100000 but 1t has never been
paid Matthew was questioned on this curious point
follows
Did the arrangement 1876 practically
If
In csnceliug The f25 900 as debt due TO you did you
consider you were cancelng corresponding amount due
20 Mr. Morton on the opposite side Of the edger-ies
And that the canceing OF the one balance practically
Why was that not given effect your bookss-I pre-
sumo simply account OF the relationship between Mr.
You were brother inlaw Of Mr. Morons and i did not
what III books far rs he concernedy
knew he would never claim II from far he was
And that his creditors would have claim upon yous-
No, his creditors now have no claim upon me.
At this time more new blood was introduced in the
Arm Of William Hay. Sons Co., Mr.. Dalglish,
with sl55o0 of capital being supplied by Matthew
& ThelInann. The capital i'll this also pro-
vided by Morton. at whose credit it stands in Mat
thew Thielmann's books. while it is placed to the
debit of Dalgish. The Hays were thus made per-
fectly solvent by the wpng out of the E225 900 and
the supply Of capital but the old system of
making advances continued and at the date Of Mat
thew X Thelmanns suspension they had received, in
addition to the capital, cash and bills amounting
to A0.000.
LETTING THE CAT OUT OF THE BAd.
Inerrogated as to the reasons for starting the ad-
again after the old burden had been removed
Mr. Matthew thus committed himself
practically this thai the Hays could get from
you, both before 1876 and after 1876, whatever they
Whatever of money they time time required
went to Mr. Morton, presumei-Yes
And was there ever any objection started by Mr. Morton
frequently % T. b.. said that was Necessary The CITY
Hays suspension would have inevitably led to yours,
mi vo,r vould have lad IN Mat
And Matthew buchanan Co.'S suspension would have
disclosed huge financing going
eh Of the City Bans amt therefore was Essentially
carrying it on for Mr.; Morton
far as this account is concerned are the City BankYYes
Then that the real object Of making the large ad
their suspension would have led to the disclosure of
the large advances.-ies
But the relations with the Hay family in Glasgow
not all. John Hay 4 Co.. Leith were relatives
and they in the same happy position to Matthew
1877 the Leith firm lad received E15000 and that
wiped out the debt or their Glasgow relatives
III the previous year. In the aggregate the Hay
family had thus received in twelve thirteen years
from the friends OF the City Bank drbDling through
Morton Il Matthew. the sum OF 133627s
WHERE DID THE MONEY 60?
Have you any idea what became Of that money. Mr..
Matthew although perhaps il is delicate question putt
II mas have been could not be legitimate
miliinsI never able to obtain any satisfactory
And you have asked them'-over and again.
books and satisfy yourself whore all the money going
business and time said that thought il would DO
ask an accountant 70 investigate their affairs
but Mr.. Hay declined To permit it,
idea whatever of The different direc
la which these large of have go1ey-I
have been able to obi tain any information
And in fact in this position til they the
whole lot Of tor money they might
demandy-Yes Mr. George Hay every third
fourth day saying he would require much money and
i had either get that or they would stop.
And what the Of their suspension
would bey-ies.
In fact the bank would allowed them Stop
No.
With all this tremendous pressure on him all
sides Matthew, according to his own statement
made only f326 per annum out OF the business OF
Matthew Thielmann. aud nothing at all out OF
Matthew, Buchanan " Co.
All this enormous labor and responsibility that took
solely take IL, account Of your brothern-la
Mr. MOrtony-It b. said TO be
But is il not SOFT is.
You had interest in IL gained nothing by it, and did il
really In Of close relationship between
yous-Yes and in order through creditaby
would have resulted had the bank suspended
payment
sion Of of the hou that you
taken before the City of Glasgow Bank
pose would have resultedin what has taken pacci
Undoubtedly.
And that the real object in keeping it all aaost-Yes
q desire 10 Keep II all together
Matthews examination was adjourned till December