The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-09-24
THE NEWCOMB-BUCHANIN FAILURE.
Indications Of SWindling on a Large Scale
Flight of Members Of the Firm.

LOUISVILLE, Sept. s23-The Developments this
afternoon, in the assignment of the Newcomb-
Buchanan Company were of sensational ma
ture. Heretofore the assignments of the com
pany were considered as formal petitions for ex-
tensions of time in which to take up their paper;
this time the assignment is made general and
Mr.. George w. Morris is named as assignee to
make final disposition Of I'll the property Of the
partners, for the benefit of the creditors Very
little sensation was occasioned yesterday, the
predominant feeling being one of regret that the
firm had gone under Geo. G. and Andrew Blu
chanan left the city on Sunday, leaving no clew
to their whereabouts. 1t was on this discovery
that suspicion Of crookedness was first aroused,
and many rumors were set afioat These rumors
to-day say the firm has made improper
to pay tax on whisky which they
had sold; another is that they have
hypothecated receipts for whisky out of bond
which did not represent the goods described on
the face of those receipts These rumors took
tangible form this afternoon, when Mr.. George
w Morris, the assignee of the company, re-
signed and turned the entire business over to
the Fidelity Trust Company. The cause, it is
said, of this step on the part Of Mr. Morris was
the finding of affairs in such complicated con
dition as to cause great trouble in Strengthening
them out. 1t is said that the accounts of the
firm are in a much worse condition than the most
respondent of the creditors ever supposed. Hold
ers of receipts Immediately rushed to the col
lectors Office to see if duplicates had been made
and it is positively stated but not by the in
ternal revenue department. that 81, 900 bonded
warehouse receipt had been discovered which
had been duplicated, and that this is a pointer
that may lead to others of like character This
is an important element in the search which is
being made into the affairs of the company by
the trust company.
When the last arrangement with the trustee
ln%n ~
placed in the hands of the partners of the firm.
There was an advisory committee appointed but
they were seldom, if ever, consulted by the firm.
1t will therefore be seen that the firm had power
to issue duplicate receipts. Whether they did
SO or not, it has been ascertaned that they have
been in the habit of borrowing money in Bos-
ton; therefore, until outsiders are heard from,
it will be impossible to lay bare the whole story
A gentleman who has had intimate business
and personal relations with both members of the
firm, and who is in a position to know positively
what he asserts to be true, said to an Associated
Press reporter You may safely say that indi-
cations are that George and Andrew have joined
Payne q Wiley, and Emo and the rest of them in
in Canada The theory Of suicide will not do
for surely both partners did not become insane
at the same moment, and neither is to be found.
There is no index except to crookedness, and
fight from law
The assets of the Buchanans are immense but
cannot be made Immediately available The liza
bllitieS are unknown. On the LIST of September
they had In their warehouse 40, S62 barrels of
whisky, some of it of the very finest quality
OF this amount it is possible ], 500 barrels have
been removed this month, but there are at least
81, 900 barrels left 1t would be hard to esti-
mate the worth of this great amount of valuable
goods. The Buchanans had nearly 1000 barrels
coming out of bond between now and next Sat
urday. The tax on this amount of goods is
$98000 This sum the Buchanans were unable
to meet, and this is said to have been the imme-
date cause Of the assignment. The banks
which hold receipts for the above property will
see that it is not confscated for tax by the gov
eminent
The first assignment, in March, 1873 amounted
to only suspension. A that time the liabilities
were 81. 630 600. The Buchanans included in
this assignment about 100000 of personal
property, which was exempt from seizure by
creditors An extension was granted, and until
1882 the company was successful in its operations,
and discharged about oneffth of its liabilities,
when another assignment was made. This Time
the debts of the firm aggregated 81 600. 00O with
total value OF assets to the amount of 81, 600
The assignee, in order to get at the facts in the
case, has sent out for publication notice say
ing 81
1t is urgently requested that all persons holding
warehouse receipts for whiskes whether as purEhas
holders of colaterals send the same to some
trusted agent of their selection that the same
may be at once examined and registered.
Mr.. George G. Buchanan, jr was seen al the
family mansion late this afternoon. He earn