William Larnach
Encyclopedia
William James Mudie Larnach (27 January 1833 - 12 October 1898) was a New Zealand
businessman and politician
. He is known for building Larnach Castle
and for his suicide
.
, north of Sydney
, Australia
. His early work was in farming and gold-digging, but he later gained employment with the Bank of New South Wales, and eventually became a branch manager. He married Eliza Jane Guise in 1859.
In 1866, he took a position as general manager of the Bank of Otago, based in Dunedin
, New Zealand
. He soon became quite prosperous, gathering large amounts of money through land speculation, farming investments, and a timber business. Between 1873 and 1887, Larnach constructed a large mansion on the ridge of Otago Peninsula
, now known as "Larnach Castle
". Larnach himself took up residence in 1874.
Although Larnach's property investments performed well, he was less successful in his banking career. The Bank of Otago's decline, which Larnach had been employed to reverse, continued unabated, and the Bank was eventually bought by the National Bank of New Zealand
. The new owners were critical of Larnach's management, and accused him of dishonourable dealings — in 1884, this broke out into a public feud.
in the seat of Caversham
. However, he was defeated by his opponent, Robert Stout
. Several months later, however, he was elected to the City of Dunedin
seat. In 1877, at the behest of his South Island colleagues, he introduced a successful no-confidence motion against Harry Atkinson
, the Premier of the day. Under the new Premier, George Grey
, Larnach was appointed Treasurer (now Minister of Finance
). He later undertook a long trip to England to arrange a government loan, although he also took advantage of the opportunity to launch a new business venture, the New Zealand Agricultural Company. Larnach's farming investments were turning sour due to the rabbit
problems, and Larnach sought to sell his lands to British investors — this prompted considerable condemnation in New Zealand, as Larnach was seen as trying to deceive the British as to the quality of the investments. The New Zealand Agricultural Company was not a success, and the affair cost Larnach many friends and allies in New Zealand.
With land prices falling and his timber company also suffering, Larnach's financial position was declining. Larnach became depressed, and withdrew from society. He is reported to have begun drinking heavily. He eventually became insolvent
, although Larnach Castle and various other assets had been transferred to the ownership of his wife, Eliza, and were therefore spared. In 1880, his wife died, and Larnach married Mary Cockburn Alleyne, her half-sister, in 1882. She died in 1887, and in 1891, he married his third wife, Constance de Bathe Brandon. In 1888, he briefly attempted to restart his career in Melbourne
, but returned to Dunedin within a year.
In 1882, Larnach returned to politics, winning the seat of Peninsula
in 1882. He devoted considerable effort to seeking government assistance for the New Zealand Agricultural Company. In 1885, he became Minister of Mines. In 1890, Larnach lost his seat, but regained it in 1894. He affiliated himself with the Liberal Party
— a somewhat surprising decision, given his associations with the business elite that the Liberals opposed.
.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
businessman and politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
. He is known for building Larnach Castle
Larnach Castle
Larnach Castle , is an imposing mansion on the ridge of the Otago Peninsula within the limits of the city of Dunedin, New Zealand, close to the small settlement of Pukehiki...
and for his suicide
Suicide
Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...
.
Early career
Larnach was born in the Hunter ValleyHunter Valley
The Hunter Region, more commonly known as the Hunter Valley, is a region of New South Wales, Australia, extending from approximately to north of Sydney with an approximate population of 645,395 people. Most of the population of the Hunter Region lives within of the coast, with 55% of the entire...
, north of Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. His early work was in farming and gold-digging, but he later gained employment with the Bank of New South Wales, and eventually became a branch manager. He married Eliza Jane Guise in 1859.
In 1866, he took a position as general manager of the Bank of Otago, based in Dunedin
Dunedin
Dunedin is the second-largest city in the South Island of New Zealand, and the principal city of the Otago Region. It is considered to be one of the four main urban centres of New Zealand for historic, cultural, and geographic reasons. Dunedin was the largest city by territorial land area until...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. He soon became quite prosperous, gathering large amounts of money through land speculation, farming investments, and a timber business. Between 1873 and 1887, Larnach constructed a large mansion on the ridge of Otago Peninsula
Otago Peninsula
The Otago Peninsula is a long, hilly indented finger of land that forms the easternmost part of Dunedin, New Zealand. Volcanic in origin, it forms one wall of the eroded valley that now forms Otago Harbour. The peninsula lies south-east of Otago Harbour and runs parallel to the mainland for...
, now known as "Larnach Castle
Larnach Castle
Larnach Castle , is an imposing mansion on the ridge of the Otago Peninsula within the limits of the city of Dunedin, New Zealand, close to the small settlement of Pukehiki...
". Larnach himself took up residence in 1874.
Although Larnach's property investments performed well, he was less successful in his banking career. The Bank of Otago's decline, which Larnach had been employed to reverse, continued unabated, and the Bank was eventually bought by the National Bank of New Zealand
National Bank of New Zealand
The National Bank of New Zealand often referred to as The National Bank is one of New Zealand's largest banks. Throughout much of its history, the National Bank has provided banking services to mainly rural, personal, and small business customers. Its owner is ANZ National Bank Limited, the New...
. The new owners were critical of Larnach's management, and accused him of dishonourable dealings — in 1884, this broke out into a public feud.
Politics
Not long afterwards, Larnach decided to enter politics, standing in a by-electionBy-election
A by-election is an election held to fill a political office that has become vacant between regularly scheduled elections....
in the seat of Caversham
Caversham, New Zealand
Caversham is one of the older suburbs of the South Island New Zealand city of Dunedin. It is sited at the western edge of the city's central plain at the mouth of the steep Caversham Valley, which rises to the saddle of Lookout Point...
. However, he was defeated by his opponent, Robert Stout
Robert Stout
Sir Robert Stout, KCMG was the 13th Premier of New Zealand on two occasions in the late 19th century, and later Chief Justice of New Zealand. He was the only person to hold both these offices...
. Several months later, however, he was elected to the City of Dunedin
Dunedin (New Zealand electorate)
Dunedin or the City of Dunedin or the Town of Dunedin was a parliamentary electorate in the city of Dunedin in Otago, New Zealand. It was one of the original electorates created in 1853 and existed, with two breaks, until 1905. Most of the time, it was a multi-member electorate.-History:From 1853...
seat. In 1877, at the behest of his South Island colleagues, he introduced a successful no-confidence motion against Harry Atkinson
Harry Atkinson
Henry Albert "Harry" Atkinson served as the tenth Premier of New Zealand on four separate occasions in the late 19th century, and was Colonial Treasurer for a total of ten years...
, the Premier of the day. Under the new Premier, George Grey
George Edward Grey
Sir George Grey, KCB was a soldier, explorer, Governor of South Australia, twice Governor of New Zealand, Governor of Cape Colony , the 11th Premier of New Zealand and a writer.-Early life and exploration:...
, Larnach was appointed Treasurer (now Minister of Finance
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
). He later undertook a long trip to England to arrange a government loan, although he also took advantage of the opportunity to launch a new business venture, the New Zealand Agricultural Company. Larnach's farming investments were turning sour due to the rabbit
Rabbit
Rabbits are small mammals in the family Leporidae of the order Lagomorpha, found in several parts of the world...
problems, and Larnach sought to sell his lands to British investors — this prompted considerable condemnation in New Zealand, as Larnach was seen as trying to deceive the British as to the quality of the investments. The New Zealand Agricultural Company was not a success, and the affair cost Larnach many friends and allies in New Zealand.
With land prices falling and his timber company also suffering, Larnach's financial position was declining. Larnach became depressed, and withdrew from society. He is reported to have begun drinking heavily. He eventually became insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
, although Larnach Castle and various other assets had been transferred to the ownership of his wife, Eliza, and were therefore spared. In 1880, his wife died, and Larnach married Mary Cockburn Alleyne, her half-sister, in 1882. She died in 1887, and in 1891, he married his third wife, Constance de Bathe Brandon. In 1888, he briefly attempted to restart his career in Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, but returned to Dunedin within a year.
In 1882, Larnach returned to politics, winning the seat of Peninsula
Peninsula (New Zealand electorate)
Peninsula was an Otago electorate in the New Zealand Parliament from 1881 to 1893, based on the Otago Peninsula.The 3 Members of Parliament for the seat were James Seaton from 1881 to 1882, William Larnach from 1883 to 1890, and William Earnshaw from 1890 to 1893.-References:*New Zealand...
in 1882. He devoted considerable effort to seeking government assistance for the New Zealand Agricultural Company. In 1885, he became Minister of Mines. In 1890, Larnach lost his seat, but regained it in 1894. He affiliated himself with the Liberal Party
New Zealand Liberal Party
The New Zealand Liberal Party is generally regarded as having been the first real political party in New Zealand. It governed from 1891 until 1912. Out of office, the Liberals gradually found themselves pressed between the conservative Reform Party and the growing Labour Party...
— a somewhat surprising decision, given his associations with the business elite that the Liberals opposed.
Suicide
Larnach's own business dealings, however, were in dire straits. In 1894, he became a director of the Colonial Bank of New Zealand, having previously become a shareholder, but the Bank collapsed the following year. Larnach was on the brink of financial ruin. In addition, he had presumably heard the rumour that his young wife was involved in a love affair with his favorite son, Douglas. In 1898, Larnach locked himself in a committee room at Parliament and shot himself with a revolver. His surviving family fought a battle over his willWill (law)
A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...
.