Tannett, Walker & Company

The demise of the company was reported in the Yorkshire Evening Post in July 1913:

Affairs of Messrs. Tannett-Walker - Examination Again Adjourned - Mr. Fredk. Wm. Tannett-Walker and Mr. Arthur Tannett-Walker, directors of Tannett-Walker and Company (Limited), engineers, Hunslet, appeared at the Leeds Bankruptcy Court, to-day, before Mr. Registrar Gillespio, for their adjourned examination. Mr. John Bowling (Official Receiver) was present, and Mr. E. O. Simpson represented the receiver for the debenture holders, and Mr. Chas. Scriven the debtors.

The examination had been adjourned to enable the debtors to file cash and other accounts, and the Official Receiver stated that these had not been filed. That being so, he was not prepared to proceed with the examination. Mr. Scriven promised that the accounts should be filed to-morrow.

Mr. Simpson examined Mr. Fred. Tannett-Walker with regard to his dealings with Lloyds Bank, the debtor stating that they were very heavily involved with the bank. He said that as a regular practice the balance-sheets were handed to the manager of the Leeds bank.

The debtor said that at first they used to give an ordinary assignment to the bank; after this they gave a specific debenture; then an undertaking, and then a sale and purchase agreement. All these purported to convey to the bank the absolute property of the debts due to the company shown in the balance-sheets.

Mr. Simpson asked if there was anything on the balance-sheets to indicate that the monies which were becoming due, had already become the property of somebody else. Were they shown as free assets? The debtor said that when they were sold to the bank they were taken out of the ledger, and did not appear on either side of the balance-sheet.

Assigned to the Bank - Mr. Simpson : You say that the work that had been assigned to the bank in any of these methods was taken out of the balance-sheets altogether!
Debtor : The sale and the purchase ones, not the debenture ones. The debtor added that he believed that quite recently, according to advice, the sale and purchase ones were left in the ledger.
Mr. Simpson : And therefore came into the balance sheet. Am I right in saying that from 1906 forward the volume of work that was assigned to the bank was increasing every year! - Well, I cannot say that from memory.
Mr. Simpson : I have had some figures taken out, and you can tell me generally speaking, you can accept them. In 1907 your large orders amounted to about £90,000 and £45,000 worth was assigned to Lloyds Bank. In 1908 out of £54,000 worth £45,000 was assigned to the bank ; and in 1910 £60,000 out of £75,000. In 1911, although the turnover - we will call it that - was about £44,000. Lloyds Bank got £45,000.

Financing the Works - Debtor said he could imagine that these figures were correct.
Generally speaking, can I put it to you that during the last three or four years of the existence of your firm you were in fact carrying on the business for the bank! - I should prefer to say that the Bank had confidence in us, and were carrying on the business for us.
There was no other work being done other than that they got the benefit of! - Yes ; but they did not get any profit out of it.
In reply to further questions, the debtor said that what ever was put before the bank in the balance-sheets was put before the trustees for the debenture holders.
Mr. Simpson pointed out that a note which appeared upon certain of the balance-sheets in the firm's books did not appear on the loose copies. this was a note by Mr. Blackburn, the auditor, stating "in our opinion insufficient depreciation has been provided on buildings, plant, machinery, etc." | << previous page << | >> next page >> |