Savannah morning news. [volume] (Savannah) 1868-1887, 1884-09-24
L0UTSVILLE'S BIG CRASH.
CROOKED WORK UNDOUBTEDLY
INDUCED IN BY THE FIRM.

both OF the Buchanans Believed to have
Joined Emo and the Rest of the Gang
in Canada-Many Thousand Barrels of
Corn Juice in the Warehouse.
LOUISVILLE, Sept. 23.-Developments
this afternoon in the assignment of New
comb, Buchanan 81 Co. were of a sensa-
tional nature. Heretofore the assign
ments 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
Geo. w. Morris is named as assignee to
make disposition of all of the partners
property for the benefit of the creditors.
Geo. G. and Andrew Buchanan left the
city Sunday, leaving no clue to their
whereabouts. 1t was then that the first
suspicion of crO0kedness was aroused
and rumOrs were set ahoat. Ru-
mOrs to-day say that the firm has
made improper use of money sent
them by customers to pay the tax on
whisky which they had sold, and also
that they have hypOthecated receipts for
whisky out of bond which did not repre-
sent the goods described upon the face of
those receipts. The rumOr first took
tangible form this afternoon when George
w. Morris, the assignee of the company.
over to the Fidelity Trust Company. The
cause, it is said. of this step on the part
OF Mr.. Morris was that he found the affairs
of the company in such a complicated
state as to promise great trouble in
Strengthening them out.
GONE TO JOIN THE GANG.
1t is said that the accounts of the firm
are in a much worse condition than the
most respondent creditors ever supposed.
TT,rsT. al
to Collectors offices 20 see if duplicates
had been made, and it is positively stated,
though not by the Internal Revenue De
Dartment, that 1000 bonded warehouse
receipts were discovered which had been
duplicated when the last arrangement
with the trustee was made. Complete
control of the business was placed in the
hands of the firm. There was an advisory
committee appointed, but it was seldom if
ever consulted by the firm. 1t will there
fore be seen that the firm had power to
issue duplicate receipts, whether they did
so or not. 1t is ascertained that they
have been in the habit of borrowing
money in Boston. 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 is in a position to know what he as
serts to be true, said to an Associated
Press reporter: ''You may safely say
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,
but are not Immediately available. Their
liabilities are unknown. On Sept. 1
| they had in their own ware
| house 70,S62 barrels of whisky,
some of the very finest quality. OF this
quantity possibly 1900 barrels have been
removed this month. There are at least
81, 900 barrels left. ItwOuld be hard to es-
innate the value Of these. The Buchan-
ans would have had nearly 5000 barrels
out of bond between now and next SatuT-
day. The tax on this quantity of goods is
$9S.000. This sIm they were unable to
meet, and this is said to have been the I'M
mediately cause of the assignment.
Banks which hold receipts for the above
mentioned property will see that it is not
| confiscated for the tax by the government.
THEIR FIRST ASSIGNMENT.
The first assignment, made in March,
| 1878, amounted to only a suspension. AT
that time the liabilities were 1880, 900.
| The Buchanans included in the assignment
| about 100000 worth of personal property
which was exempt from their creditors.
An extension was granted, and until 1892
| the company was successful in its opera
| tiOns, and discharged about One-fifth of
its liabilities. Another assignment was
made. This time the debts of the firm
aggregated 81 900, 900, and the total value
of the assets was $3.50, 600. The assignee,
in order to get at the facts in the case,
sent out for publication a notice
saying: sit is urgently requested that
| all persons holding warehouse receipts
| for whiskies, whether as purchaser or
holders of collaterals, send the same to
some trusted agent of their own selection
/ fbot ha ma hn nyaminp6 and rp
| gistered."
G.. g. Buchanan, Jr., was seen at the
| family mansion this afternoon. He strong
lv denied all knowledge of the where
abouts Of his father, and protested that
| the family were as ignorant on that point
as the public. Referring to the theory
| that his father ha@ committed suicide, he
said that he thought it a silly one, and
| that the family did not give it any cred
ence whatever.
THE BROKEN TELEGRAPH COMPANY.
NEW YORK, Sept. 23.-The matter of
| the receivership of the Bankers and Mer-
chants Telegraph Company was again
| before the Supreme Court to-day, where
| an amicable arrangement was agreed
upon for the appointment of James g.
| Smith and X. S. NewcOmb as receivers of
the insOlvent corporation. Later in the
day Judge DOnahue granted the appoint
ment of these gentlemen. They gave
bonds in 5O,OOO. Whenever the amount
| of $4,000 shall accumulate in their hands,
which shall not be necessary for any spe-
cific purpose, it shall be deposited with
| the Central Trust Company.
ON THE STOCK EXCHANGE.
The suspension of c. A. Mintun was
announced at the Stock Exchange this
morning, He has no outstanding con-
tracts on the board,
VIRGINIA's BANK SUIT.
PETERSBURG, VA, Sept. 2S.-In the
| Hustings Court to-day Judge L. NJ. Mann
| issued an order of decree in the suit of
/ Williams and others against the Planters
| and Mechanics Bank in accordance with
! the opinion rendered by HIM Yesterday.
/ The order is a lengthy, one and in 1t the
| court instructs the trustees of the bank
to inquire where the money now in their
/ hands belonging to the bank can be
| placed so as to yield the most interest and
report the same at the October term of
| the court. The funds of the bank now
| amount to $4,000.
STAFFORD CO.'S SCHEDULE.
FALL RIVER, MASS, Sept. 23.-At
meeting OF the creditors of Stafford & Co.,
| held this afternoon, A. E. BOsworth, one
| of the trustees, read a statement showing
assets of $450, 900 and liabilities of $3.50, 900.
| The stock of the members of the firm was
pledged upon the cOmpany's papers to
| the extent of $l30,00O. A committee was
! appointed to present the statement to the
| creditors and recommend course OF
action. 1t is probable that an extension
| of time will be granted.
DEPRESSING EFFECTS OF FAILURE.
MONTREAL, Sept. 23.-The failure of
well-known private banker of London,
| Ont, has had the effect of depressing the
! local stock market. The Bank of Mon
| treal stock has fallen 81 points since yes
| terday. Mr.. Smithers. President of the
| Bank of Montreal, states that the amount
of Mr.. Fawcets liabilities would only
| amount to half the sum mentioned, or at
the outside $500,000.
| RUINED BY A BIG LOAN.
WEST LIBERTY, o., Sept. 2S.-The Lo-
| gan National Bank closed its doors yes
| terdav. which was caused by the cashier
| lOaning nearly all the available funds to
one firm. The bank had capital of only
! $50 600. 1t is said that the loan is well
secured and that depOsitors Will lose
nothing.
INDICTED FOR EMBEZZLEMENT.
! RUTLAND, VT, Sept. 23.-JOhn B. Page,
| ex-President of the Rutland Bank, and j.
NJ. Haven, ex-Treasurer of the Rutland
Railroad Company, have been indicted by
the grand jury of Rutland county for the
embezzlement of 1900.
A TEXAS MERCHANT GOES UNDER.
GALVESTON, TEN, Sept. ga special
| from Martin, Texas, says: &c. W. White,
| dealer in general merchandise and lum-
| ber, has made an assignment. His liabili-
| ties are S6S000 and the assets about