The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-09-02
THE KETCnUM CASE.
>,-~-~-~~~~~,~~-~~->
MEETING OF CREDITORS OF THE FIRM.
BASIS OF SETTLEMENT AGREED UPON.
Sixty Per Cent on the Claims to
be Paid.
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LIABILITIES ABOUT FOUR MILLION DOLLARS.
THE FoRcERlEs NOT COMPROMISED.
>~~~~>~~~>->~~>~>>~~>~-
Xetcnum, Son Il Co. to Re-
sumo Business.
One Million Thret Hundred Thousand Dollars
10 be Paid in November.
&c. &c. &c.

according TO announcement duly made throughout
business circles meeting Of the creditors Of Messrs
Ketchum, Son Co was held yesterday afternoon. The
meeting was convened through the following circular
CIRCULAR TO THE CREDITORS.
N3w YORK, August 23 1865.
DEAR SlR-s,nce the events Of last week, which dis
closed to ourselves the unfortunate condition of
house, and drove US to assignment, we have been
busy engaged In efforts to property to
affairs. We now able to say for the first time
that according to the balances books, liab
ties in round numbers 000 while the available
assets applicable to the payment of our liabilities and the
expenses Of winding up the estate cannot probably
aizc than So 500 900 to 49, OOo and in forced
realization probably less either sum- Some claims
amounting to about $3.50 00O have been made upon
which think liable for and there faint
prospect that assignees may regain a very small
amount Of the assets Of which fraudulently de-
prved The amount of funds and securities absracted
from US without knowledge at the time, and TO
great loss, definitely ascertained to have been
not less than So, 800 000
Under these circumstances we are urgently advised
by many Of creditors to invite your attendance at
meeting Of our creditors to be held at late banking
house. No 10 Exchange place, at twelve O'Clock NJ of
Friday, the 1st of September at which time shall
submit detailed statements Of liabilities and assets,
and in the meantime shall endeavor to be prepared
with some proposition which, IL consented to by all
creditors will, we hope facilitate the settlement Of our
affairs
At this juncture the greatest prompness of action is
necessary and beg that you will either attend in per
by representative authorized and prepared to
act in the premises
In the meantime, and always unless the voluntary
action and consent of creditors shall justify differ
ent course assignees will continue act in preserv.
ng and dspSng Of our estate Is es Law sS
CIRCULAR FROM NORRIS KErcHUM.
New YORK, August 81, 1866.
To THE CRsp:roRs OF KETcHuM, Son Coz
GENTLEMES-A sudden and disastrous blow has pros
traed house. The conduct Of one OF its members,
too painful for TO dwell upon has deprived us of up
Securities belonging to others are abstracted well
as those belonging to the firm. The former we are ad
yised oy counsel ana mercantile TRENDS rs our nrss
cured have made assignment OF all our property
for the equal benefit OF all our creditors have also
assigned all my private property for the same purpose.
Till the morning OF the day after he absconded never
had the slightest doubt Of my sons integrity; never
least of all to me even his conduct is nexplicabe
and cannot believe he was In his right mind when he
so cruelty wronged you and me.
Since The failure Of the firm the two following letters
have been put into my hands, they explain themselves
The writers could have supposed that the amount
taken beyond the ability of the house to replace and
the secresy therefore, the dictate equally of good
kindness do blame them, for they acted
according their best judgment and under trying cir
cumstances, They have filled prominent positions in
my house for many years. having deservedly entire
confidence unmpairea oy the decision they came 10 IN
have ventured TO call you together to render plain TO
you the state of affairs and to ask your advice Five
gentlemen, whom you all know OF the highest charac-
Ter and ability as merchants-Messrs Moses Taylor,
Jonathan sturges, Edmund G. Howe, BENJAMIN B. sher-
fnelpS-naNe
affairs The letters requesting this examination and
their answer subjoined.
cannot close this communication without expressing
TO my deep regret that OF should be loser
by our failure In my prosperity never supposed this
would happen.
1t is not the loss OF my property which
my deepest regret for could have my son back
with his good name, and you were all paid 10 full,
should die content NORRIS KETCHuM
THE MEETING
convened at twelve O'Clock, there being present about
aet,
gave each creditor of the house representative The
place selected the Ketchum banking establishment
No 40 Exchange place, where the parties plea.
sanity received by the members Of the firm who
enabled by the circumstances OF the be present
The questions brought up discussed quite calmly
aud informally At times there would break out sharp
word from cxcitabe and choeric creditors but as
general thing, the feeling was subdued and restrained
by department the firm which had met the disaster
and there was slight disposition shown add to their
discontinue
There some anxiety Of course concerned the
final close Of the meeting and also universal desire for
relation TO the forgeres of Edward b. Kctchum II
generally believed that Mr. Morris Ketchum would ex
belief that the assets Of the house were not TO be
affected by these forgees the creditors would sign formal
release and allow the TO business its
own terms, be they what they might The
MEETING ORGANIZED
u. w. II. representing
Carpet Company which Is understood to be the largest
loser by the defalcaons, chairman, and Mr.. Il. w.
Blatchford Of the Chicago Lead aud Iron works-for
himself and his company-secretary A programme Of
business then decided upon.
Az no persons excepting creditors those represent
ing creditors admitted to the meeting the report
by the secretary has be relied upon for the
proceedings which followed
TIE FIRM TRYING TO OFT RID OF v. b. KETCHUM.
Mr.. Morris Ketchum brought forth for the inspection
quest read by Mr. James Bangs counsel OF the house
and Of the assgnees-Messrs Taylor, Calhoun and Ben
nett This package embraced letter from Morris
Ketchum TO the creditors, and also letters TO Mr.
Ketchum from Thomas Bclknap, yr, one Of the part
Swan also par partner % TO Edward B. Ketchum The let
ter to young ketchum was dated the 4th OF August,
1895, and revealed that an effort had been made by
the Junior partners to bring Mr. Edward b. Ketchum s
individual specuations TO close, with view Of tcrm
mating his connection with the rm would have been
yell for many persons had this plan succeeded.
LETTER FROM MR.. BELKNAP.
NEW YoRK, MONDAY MORNING, August 2s, 1865
Mr. MORRIS KETcuUM-
DEAR SIn-Thc events and developments of the past
fortnight have been OF such overwhelming Character
and the necessity for instant and ncessant action in i'm
porant matters has been pressing, that have been
this form and without restriction upon your use OF ali
that s within my knowledge respecting the transactions
W which have now 80 to 50 T The cod
ration that without the greatest degree OF frankness on
my part, Of the junior partners IN our house, MT
swan, may be subjected TO criticism which he ought not
20 bear alone; while your sons Franklin and fandon
might suffer by the suspicion that they were aware Oh
transactions OF which am confident they knew nothing
In looking the loans and securities about the ISL
OF June Mr. Swan found that there was missing some
$3.50 600 United States and thrceenths per cent
notes. $3.50 900 United States legal tender i've per cent
notes, and s195 900 fvetwenty United States bonds
The current rumors Of large stock specuations by our
house. which he knew 10 be unfounded had aroused ms
suspicion that Edward specializing on his own ac-
count and these suspicious now pointed TO EDWARD az
connected with the missing securities Upon being taxed
by MI Swan With their abstraction Edward admitted y,
and that he specializing his own account but as
ssrisd .bel ~ sslaEtas ws wlt&a ~ coasIcI Y W