Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-09-24
the NEWC0MBE.BUCHANAN co
Developments OF Great Crooke dness In their
Assignment-rhe Extent Not known.
fBy telegraph to the Dispatch

by Telegraph 20 the Dispatch.I
LOUISVILLE. KY, September 23.-Devel-
opments Ibis afternoon in the assignment OF
The Newcombc- Buchanan Company were Of
sensational nature. Heretofore the assign
menis OF the company were considered as
formal petitions for an extension OF time
in which to take up their paper. This
time the assignment made Is general, and
Mr.. George W. Morris is named as as
signee TO make final disposition OF all the
property Of the partners for the benefit OF
their creditors
George c. and Andrew buchanan left the
CITY sunday, leaving no luc to their where
abOuts. II was then that the Grst suspicion
OF cr0Okedness was aroused and rumors
were set afloat. Rumors to-day say that
the firm has made improper Use Of money
sent them by customers 10 pay the tax on
whisky which they had sold also, that they
have hypothetical receipts for whiskey ont
OF bond which did not represent the goods
described upon the face Of those receipts.
The rumors frat took tangible form this
afternoon, when George W. Morris, as
signce OF the company, resigned. and
turned the entire business over TO the
Fidelity Trust Company. The cause. It il
said, Of this step on the part OF Morris was
such a complicated state as to promise
great trouble in Strengthening them cut.
II Is said that the accounts Of the firm
ere IN much worse condition than the
most RESPONDENT OF the creditors ever sup
posed. Holders OF receipts Immediately
rushed TO the collectors Office to see II
duplicates had been made, and il Is posi-.
lively stated. though not by the In.
ternol Revenue Department, that one
thousand bonded warehouse receipt,
were discovered which had been
duplicated. When the last arrangement
with the trustee was made. complete con-
troll OF the business was placed in the hands
Of the firm. There was an advisory com
miltce appointed. but II was seldom ii ever
consulted 10y the firm. II will therefore be
seen that the firm had the power 10 issue
duplicate receipts whether they did 50 or
not. 1t is aSccrtained that they have been in
the habit Of borrowing money in Boston.
Until outsiders are heard from it will be
impossible 10 lay bare the whole story. \
gentleman who has had intimate business
and personal relations with both members
OF the firm. and is in position 10 know pos
lively what he asserts 10 be true, sad TO
an Associated Press reporter:
" on may safely LAY that the indications
are that George and Andrew have Joined
Payne and Wiley and Emo and the rest OF
them in Canada"
The assets Of the Buchanans are immense.
lut are not Immediately available. Their
liabilities are unknown. ON the Isl OF sep
tember they had in their warehouse -. ~
barrels OF whiSkey, some Of the very finest
quality. OF this quantity possibly 5000
barrels have been removed tins month.
There are at least C7,000 barrels left. l.
would he bard 10 estimate the value Of
these. The Buchanans would have hld
neprly $4,000 barrel, out OF bond between
now aud next SATURDAY.. The tax on this
quantity OF goods is $4,000. This sun
they were unable 10 meet. and this i, said
TO have been the immediate cause OF the a>-
siGnment. The banks which hold receipts
for the aforementioned property will see
that il + not coniiscatcd Tor tax 10y the Gov
prff