The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1884-09-25
SENSATIONAL DEVELOPMENTS IN
IN THEFAILURE OF THEGREAT
WHISKY FIRM.
George and Andrew Buchanan
Fled-TheOry of Suicide
Not Tenable.
Stock on Hand, 67 900 Barrels;
Tax, sos, 900, Which They
Could Not Meet.
Present Debt of the Firm, ST.
100000, With Half Mill
ion Real Estate.

LOUISVILLE, September 23.-The
| developments this afternoon in the as
| signment OF NeWcomD, Buchanan 81
Co., were of a sensational nature.
Heretofore the assignments OF the
company were considered as formal.
The petitions for extension of time in
which to take up their present assign
ment are made general, and Mr.. Geo.
w. Morris, named assignee to make
final disposition of all the property of
the partners for the benefit of the cred
itors. Very little sensation was oc-
casioned, the Tredominant feeling be-
ing one of gret that the firm had
gone undel
Geo. anG Andrew Buchanan left the
city Sunday, leaving no clue to their
whereabouts. 1t was then suspicion
of crookedness was first aroused, and
rumorS set aflGat. Rumors to-day
say the firm has made an improper
use of the money sent them by custom
ers to pay tax on whisky which they
had sold. Another is they have hy-
pothecated receipts for whisky out of
bond, which did not represent goods
described upon the face of those re-
ceipts. The rumors first took a tan
gible form this afternoon, when Geo.
w. Morris, assignee of the company
resigned, and turned the entire busi-
ness over to the Fidelity Trust COM
pany. The cause, It is said, of this
step on the part of Mr.. Morris was
finding the affairs in such a complI-
Gated condition as to cause great
trouble in Strengthening them out; he
saw that the accounts of the firm
are in much worse condition than
the most respondent of the creditors
ever supposed.
Holders of receipts Immediately
rushed to the collectors office to see if
duplicates had been made, and it is
positively stated-but not by the in
ternal revenue department-that a
81 600 bonded warehouse receipt has
been discovered which has been
duplicated. That this is a
pointer that may lead to others
of like character is an important ele-
ment in the failure.
Search was being made into the af-
fairs of the company by the Trust |
when the last arrangement |
with the trustee was made and COM
plete control of the business was
placed in the hands of 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 the firm had power |
to issue duplicate receipts. Whether |
they did so or not, it has been ascer- |
tanned they had been in the habit of |
borrowing money in Boston. There
fore, until outsiders hear from it, it |
will be impossible to lay bare the |
whole story.
A gentleman who had Intimate
business and personal relations with
both members of the firm, and
is in a position to know, positive
ly, what he asserts to be true, said
to the Associated Press: "You may |
safely say that the indications are that
George and Andrew have joined
Payne and the rest of them in Can
ada"
The theory of suicide will not do,
for surely both the partners did not
become insane at the same moment,
and neither is to be found. There is
no index except as to crookedness and |
flight from the law.
The assets of the Buchanans are
but cannot be made imme-
diately available. The liabilities are
On the 1st of September
they had in their warehouse 70,682
barrels of whisky. Some of the very |
finest quality of this amount possibly /
$40 barrels-has been removed this /
There are at least 1900 bar
rels left. 1t would be hard to estimate |
the worth of this great amount /
of 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 $685. }
800. This sum the Buchanans were /
unable to meet, and this Is said to !
have been the immediate cause of the |
assignment.
The banks, which hold receipts for |
the above prop ,rty Will see that it is
not confscated for the tax by the gov
ernment. The first assignment in
March, 1878, amounted to only sus-
pension. AT the time the liabilities |
were 81 100000. The Buchanans in
cluded in the assignment about $780,
600 of personal property, which was
exempt for creditors. An extension
was granted, and until 1882, the COM
pany was successful in operation and
discharged about one fifth of its liza
ALObnOl WdO
made. This time the debts of the
firm aggregated 100000 with total
of assets to the amount of $230O00.
The assignee, in order to get at the
facts of the case. sent out for publica-
tion notice saying: 1t is urgently
requested that all persons holding
warehouse receipts for whiskies,
whether as purchasers or holders of
collaterals. send the same to some
trusted agent of their own selection,
that the same may be at once examined
and registered.
George c. Buchanan, Jr., was seen
at the family mansion late this after
noon. He earnestly denied all know
ledge of the whereabouts of his father.
He protested that the family is as
ignorant on that point as the public.
Referring to the theory that his father
had committed suicide, he thought it
a silly one, and that they do not give
it any credence whatever.