St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-09-24
GONE TO MEET PAYNE.
The Newcomb, Buchanan & Co. Failure
Assuming Sensational
Character.
Rumors of Hypothecated Warehouse Receipts
and Trip for Their Health to
Canada.

ments this afternoon in the assignment of
the Neweomb, Buchanan company were Of
sensational nature. Heretofore the assign
ment of the company were considered as
formal petitions for extension of time in
which to take up their paper This time the
assignment was made general. The predomint-
ent feeling is one of regret that the firm had
to go under. Geo. c. and Andrew Buchanan
left Sunday, leaving no clue. 1t was then
the thought of suspicion of crookedness was
first aroused. Rumor says the firm have
made improper use of money sent them by
customers TO pay tax on whisky, and they
have hypothecated the receipts for whisky
out of bond which did not rep
resent the goods described upon the face of
these receipts. The rumor took a tangible
form this afternoon when Mr.. Geo. Morris,
the assignee, resigned and turned the entire
amount over to the Fidelity Trust company
The cause of this step on the part of Morris
was the finding of affairs in such a compii-
Gated condition as to cause great trouble.
1t is said the accounts of the firm are in a
much worse condition than the most despond-
ent creditors supposed. The holders of the
If duplicates had been made, and it is stated
$1,000 bonded warehouse receipts were dis
covered which had been duplicated. This is
a pointer WEIGH may lead to others of like
character, and is an important element in
the search now being made into the affairs
OF the company by the Trust company. When
the last arrangement with the trustees was
made, complete control of the business was
placed in the hands of the partners. There
was an advisory committee appointed, but
they were seldom if ever consulted by the
firm. 1t will be seen that the firm had power
TO issue duplicate receipts, whether they did
so or not. 1t has been ascertained that they
have been in the habit of borrowing money
in Boston, therefore until outsiders are heard
from it will be impossible to lay bare the
story. A gentleman who has had business
and personal relations with both members of
the firm, and is in a position to
know positively what he asserts is true, said
to the Associated press reporter:
''You may safely say the indications are
they have joined Payne and Wiley and Emo
and the rest of them in Canada. The theory
of suicide viii not do, for surely both part
ner did not become insane at the same mo-
ment, and neither is to be found. There is
no index except to the crookedness and
flight from law.''
The assets of the Buchanans are immense,
but can't be made Immediately. The liabil-
ties are unknown. On September they
had in their warehouse 70,S62 barrels of
whisky, some of the very finest quality. Of
this amount possibly 15,0 barrels have
been removed this month. There are at
least 67, ZOO barrels left 1t would be hard to
estimate the worth of this great amount
OF valuable goods. The Buchanans had
nearly 5000 barrels coming out of bond be-
tween now and next Saturday. The tax on
this amount Of goods is S9S, 600. This sum
the Buchanans were unable to meet, and this
is said to have been the immediate cause of
assignment.
The banks which hold the receipts for the
above property will see that it is not confis-
Gated for tax by the government. The first
assignment in March, 1878, amounted to
only suspension. At that time the liabili-
ties were s1,63O, 900. The Buchanans in
cluded in the assignment about $500, 900 of
personal property, which was exempt from
creditors. An extension was granted
and until 1882 the company was successful
in operation and discharged about one-flfth
of the liabilities. Another assignment was
made. This time the debt Of the firm aggre-
gated 81, 800, 900, with a total value of assets
to the amount of $230,000. The assignee,
in order to get at the facts in the case sent
out for publication notice, saying:
1t is urgently requested that all persons
holding warehouse receipts1for whiskies.
whether as purchasers or holders of collater-
ais, send the same to some trusted agent of
their own selection, that the same may be
at once examined and registered.
Mr. Goo n pucho0ap ,oo,,.
the family mansion late this afternoon. He
earnestly denied all knowledge of the where
abouts of his father. He protested the fam
lily is as ignorant on that point as the public
Referring to the theory that his father had
committed suicide, he said he thought it a
silly one, and that they do not give it any
credence whatever.