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John Harvey, 1833 - 1901

The 1872 Shipyard Fire

From: Essex County Standard, 29th January 1873

Wyvenhoe

Bankruptcy of Messrs. John and Thomas Harvey, Jun.

The adjourned Public Examination Sitting of these bankrupts, well-known firm of yacht builders of Wyvenhoe, was held at the Town Hall, Colchester, on Monday, before Mr. J. S. BARNES, Registrar.

The Sitting was to have been held a week earlier, but in consequence of the unfortunate accident to the Registrar while hunting with the East Essex Hounds, it had to be postponed until Monday. Although still suffering from the effects of the accident, we were glad to find that Mr. Barnes was able to attend, and that during the sitting he was congratulated upon his convalescence, a congratulation in which we heartily join.

Mr. SAYERS TURNER appeared for the Trustee (Mr. E. J. Craske) and the Committee of Inspection; Mr H. JONES for the Bankrupt, Mr. Thomas Harvey; and Mr. F. B. PHILBRICK for Mr. John Harvey; Mr HORACE PHILBRICK was for several creditors; and Mr. TITCHMARSH, of Ipswich, attended as Trustee of Cuthbert's (a creditor) estate.

Mr John Harvey, who has been the managing member for the firm, and who kept the accounts, was examined at very great length. In reply to questions by Mr. TURNER, he stated that he was not originally in partnership with his father, but when the latter came to grief, he (the Bankrupt) was set going by Mr. W. W. Hawkins, and his brother subsequently came in as a partner. His brother had claimed to be a partner, and had filed a bid in Chancery, and he (John) gave way, and admitted him as a partner. He had no capital to start without Mr. Hawkins made an agreement which satisfied the then creditors, and his (Mr. Hawkin's) credit the new firm was supplied with everything necessary to carry on the trade. People advanced money as soon as he began to carry on the business. It was the custom in yacht building for people to make advances as soon as the firm began, and even before - in fact a man did not want any capital to commence yacht building if had got a good name. His brother Thomas did not bring two pence into the business, although he promised to do so. There were not many bad debts made in the business, but from 1870, when his brother was with him in full swing as a partner, he could not tell what their annual profits were. In 1870, at the time of the Chancery Suit, Mr. Jay was engaged to make a valuation, which showed that the stock alone was worth about £2,300. He believe that an old vessel (the Sinbad) was included in this valuation. The profits of the business ought to have been £1,500 a year, considering the work they had had the last three years. Tolerably conducted, and even extravagantly, it would produce that. There was only one banking account kept. This was kept at the bank of Messrs. Bawtree, and Co., was in the name of "John Harvey and Co.". Up to the time of the partnership, he alone wrote cheques, but since 1870 his brother had also written them, although he tried to stop him. Thomas did not pay any of the tradesmen. The arrangement was that he (witness) should see after the books, and that Thomas should look after the yard. He was not satisfied with the amounts Thomas drew - he thought he drew too much.

Mr. TURNER. What did he draw per year?

Witness. Something like £230 in six or seven months.

Mr. TURNER. What amount did you draw?

Witness said he drew a cheque every week to cover wages and travelling expense; and his housekeeper used to draw from the cashier what was required to keep the house, and this was entered in the Petty Cash Book. He had averaged his travelling expenses at £4 per week. In the course of further examination witness explained the manner in which, since the first sitting, he had made up a posthumous cash-book to supply the place of the cash-book which he alleged was burnt at the late fire in the shipyard, and he expressed his belief that it was correct with £50. He was then questioned as to the ownership of the Post Office Property at Wyvenhoe, which he said he believed cost him £300. He said that Mr. Chapman found the bricks and the firm "Harvey and Co," found the carpenter's labour which would amount to about £34. The firm also received all the rents from this property; but nevertheless the property did not belong to the firm but to his private estate. He knew he had acted foolishly in allowing the firm to receive the rents but it was done in order to keep the firm going. The property was mortgaged for £350, but this the firm paid off, although not until it had received £700 or £800 for rent. His sister, Mrs. Morgan, of Barking, had a mortgage on a vessel the Perseverance, belonging to a person named Scott. This vessel was sold, but did not fetch the amount of the mortgage, and his sister let him have it. He was to secure this sister her money. He promised to pay her or secure her by mortgage in the vessel but he did not do so; he sold it, and afterwards secured his sister by a mortgage in a smack called the "Who'd a Thought IT". He executed this mortgage on the 17th Sept. 1872, but had promised to do it long before, in proof of which a letter, dated May, 1871, from him to his sister was produced.

Mr. TURNER said a letter written on May, 1871, would wipe out what he called a fraudulent preference in September, 19872.

Mr. F.B. PHILBRICK considered that the letter went to show that there had not been a fraudulent preference.

Mr. John Harvey further stated that just before the Bankruptcy Mr. John Brown, of Magdalen Street, had some old iron of him, and was credited with the amount. This was in the ordinary way of trade. He did not know of his insolvency until the cheque of Mr. W. Browne, ropemaker, Wyvenhoe, was dishonoured. He informed his bankers that he was insolvent and that they must not pay any more cheques. His brother-in-law, Dr. Goyder, held a policy on his life for £200. He attributed to the recent fire, in a great measure, the cause of their failure. They had had a great deal of business of late, and their stock had much increased, so that at the time of the fire they were not nearly sufficiently insure., The amount of the insurance , £1,357 was paid into the Bank when received.

Mr. TURNER. Have you any idea of the cause of the fire?

Witness believed the premises were set fire to purposely by some one. There had been a treat given to the men there that night, and as usual great watch was afterwards kept for some item to see if everything was all right. IT was almost impossible that the fire could have occurred accidentally, but of course this was merely his individual opinion.

In reply to Mr. TITCHMARSH, he said he still adhere to his former statement , that the cash-book had been destroyed at the fire; he had given the Trustee an account of all the received for inspecting other people's yachts; what he received from this source always went into the business, and it appeared on the books; he did not know before the fire that the firm was insolvent; he would swear that he did not contemplate it.

Mr. TITCHMARSH then questioned the witness on the accounts, evidently with a view to show that the posthumous cash-book had not been made up in the way described, but nothing of any importance was elicited.

Mr. H. PHILBRICK (to witness). Have you seen the cash-book in question, and the papers that were in it, since the fire?

Witness. I have not.

By Mr. JONES. The "Yankee" belongs to Lord Alfred Paget, but was lent to the firm for us; the firm found her a new set of sails last year, because the firm used her.

Mr. Thomas Harvey. I never used her.

Witness. No; because you always misused her, and were not allowed.

Mr. T. Harvey. Then how could it be the firm?

Mr. JONES asked for particulars as to his (witness's) father's claim for £208.

Mr. CRASKE (Trustee) said the account had been rendered, with dates and items.

Witness, in answer to Mr. JONES, denied that he had a banking account in London, and that the Post-Office property ever belonged to his father.

Mr. F. B. PHILBRICK (after shortly re-examining the witness) submitted that his client was entitled to pass his examination remarking that he (Mr. John Harvey) had made out the best account he could, and that nothing would be gained by a further adjournment. Although in cases of this kind there was generally some irregularity in keeping the accounts, it was no reason why the bankrupt should not pass his last examination.

Mr. TURNER, on behalf of the Trustees and the largest creditors, said he was not instructed to oppose the Bankrupts' passing their last examination, but thought it must be apparent that there had been the grossest irregularity in the keeping of the accounts, which had been admitted on the other side.

Mr. F. B. PHILBRICK. No; I did not make use of the word "gross".

Mr. TURNER said he would not withdraw the word; and after some further observations as to the unsatisfactory way in which the accounts had been kept, he said that the latter would be further investigated by the Committee of Inspection, who would also enquire into the question of preference.

The REGISTRAR said he had no hesitation in allowing the bankrupts to pass, unless there was some solid objection to such a course, because in allowing them to pass, the Committee, or any creditor, was not precluded from calling a further meeting for investigating the affairs of the bankrupts. The object of the first adjournment was that the affair being a heavy one, he thought it would be hard on the creditors if they had not some sort of cash account before them. Mr. Turner had expressed his surprise at the way the accounts were kept, but when he had had the experience which he (the Registrar) had in these matters, he would never be surprised to find that people came to the Court without any accounts at all. He was sorry to say that his experience was that he had never had a bankruptcy case before him in which what he might term a regular debtor and creditor account had been kept; and until the law was altered that could never hope that accounts would be kept by traders as they ought to be.

Mr. JONES. It is suggested that where accounts are so kept they never become bankrupts. (Laughter.)

The REGISTRAR said it was really necessary that there should be Legislative enactment by which no bankrupt would be entitled to his discharge for a number of years who had not kept a proper debtor and creditor account.

Mr, H. PHILBRICK. I hope there will not be a perfect account, or there will be no work for us. (Laughter.)

Mr. F. B. PHILBRICK. It is said that the only people who properly keep accounts are the layers. (Renewed laughter.)

Mr. J. Harvey. I think it is forgotten there was a fire. I will guarantee that my accounts were properly kept.

The bankrupts were then declared to have passed their public examination.

Mr. JONES, on behalf of himself and his professional brethren, offered to the Registrar their sincere congratulations at seeing him again at his post. They were all very much pained when they heard of his recent accident, and they were now extremely glad to find he had so far recovered.

The REGISTRAR expresses this thanks for the kind congratulations, an added that he still felt the effects of the accident.

Mr. W. Browne, Wyvenhoe, on behalf of the non-professionals present, joined in the congratulations.

The REGISTRAR said he was very sorry that he had had to postpone the last sitting.

Mr JONES. Pray don't think anything of that for a moment.

The proceedings then ended.

The end of the story...

From: Essex County Standard, 2 May 1873

Wyvenhoe

We are glad to learn that this rising little place is recovering from the effects of the late fire at the Shipyard &c, and the consequent stoppage of a large amount of business; and now (writes our Correspondent), from yacht building, yacht repairing, and yachts being fitted out, we have very few idlers.