New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-09-02
TIE FAILURE OF kETCHUM & CO.
MEETING OF THE CREDITORS.
letters From Different members
Of the Firm.
Affecting Statement by Morris KetchUm.
a Compromise of Sixty Per Cent Agreed
Upon.
Affecting Statement by Morris Eetchum.

The following is the Official report Of the
meeting of the creditors of Norris Ketehum d Co,
held in this city yesterday. AS viii be seen an or.
rangement for settlement of the claims against the
firm has been made on the basis Of 60 cents on the
dollar:
at meeting of the creditors Of Ketchum, Son &
Co.. held pursuant written ICtice Of the I'D OF Au-
gust al No 40 Exchange place. IN the City OF New
York on Friday Sept J. le6j, William X. Cone of
Hartford Conn., call led 10 the Chair T.. W. Blatch
ford Of Chicago, ILL.,. was appointed Secretary.
Morris Kptchum presented commune atoms, which
he requested might be read to the meeting
Mr.. Francis :. Bangs, the counsel of Ketchum. Son
NEw.YoRK August 81. 1865
To the Creditors Of KtfoiEh. son d Go.
CENurMEN: 4 sudden and disastrous blow has pros
trGted house, Tie conduct Of one IT rs members,
toe painful for ne to dwell upon has deprived as Of up
ward ol - GO 0Jp
SecuIitjes belonging 10 others are distracted wei
as those belonging 20 the firm. The former. we are
advised by counsel and mercantile friends u Is first
duty TO replace That being done and trust funds
cured, have made an assignment OF all our property
Tor the equal benefit Of a our creditors. nave a."
asst ued AZ MY private property for tie sare purpose
Til the morning Of tho day after he absconded never
had the ghtest dOubI Ofuy ms iueRrity ncyerSu
posed him capable Of doing wrong to any one' ana
least of all - me; even n0w Lis conduct Is laeIpcnble
and cannot believe ne YVES IN his night mind when &c
so crrelly wronced you ard me.
Since the future of tic r tho two following letters
The writer's could have supposed that The amount
taken beyond the ability OF the house 20 replace
and the secresv therefore was the dictate equally OF
good sense and kindness. 1 do not blame item for
they acted according 10 their best judgment aud under
trying circumstances. They have filled prominent pO.
sitons in my house for many years having deservedy
nv entire confidence, uumpared by the decision they
came 10 in their e11Its 10 regain tho securities 40
stracied.
have ventured 70 call you together 20 render plain
TO You the stale Of our aiars. eud to ask your advice
Five gentlemen. whom yOu all know "a of the highest
character and ability merchants Moses Moses lay.
Tor, Jonathan StmEes. Edmund q. Howe BENJAMIN H.
Sherman and John j PAo.ps have peeA invited TO e1-
anime our Affairs. IL letters requesting this ez1nIa'
tOn and their answer. are srbJoinod.
cannot close tins communication without express
ing to you ny deep regret that ary Of yol should be
loser by our failure. In my prosperity never srp
posed this would happen.
1t is no, the loss Of my property. whi,n causes
me NY deepest regret for now II i could have ny son
back With bis good name and you were all poid IN iu!l
L should die content NORRIS hLICHtN.
NFw. YoKg Monday morning, Aug. q.
Mr. NORRIS KfTCuIM-pear SIR. Tie ev-nts and
developments of the past have been OF SUI an
Overwhelming character and tie necessity Tor instant
and ncessant action IN important matters has been 30
pressing that have been delayed 10 stating - youes
ii is my duty TO do, ANA in this form aud without
restriction upon yOur use Of i-ali that Is within my
knowledge respecting the transactions hjch have nov
resulted 80 rirousy 10 yourself and oil Of u. am
especially Tpeied 10 do 50 by The consideration that
without the greatest degree Of frankness GA LIN part
be subjected criticism which he ought not to bear
alone; while your sons Franklin and Lsndon. might
suffer by the suspicion that they were aware of trans
actions Of which / am confident they knew nothing.
In looking tie loans and securities about TIE first
Of June MI Swan foaDd that there VAS missing some
$4,000 United states ~ per cent notes, kGpVOJ
United states egaiender i've per cent notes and SID
900 go nitcd States bonds The current rumors oage
stock speculatiOns by our house which be knew 10 be
had aroused his suspicion that Edward WAS
Specializing on bis own account, and these suspicious
rapn gH fla mig
securities. Upon being taxed by Mr.. swan with their
abstraction Edward admitted II, and that be was
specializing on his own account, but asserted that the
securtits were within his control. II little time was
afforded him. These bonds and notes appeared on n
thorough examination TO be tho OHly property apprO
prated by Edward end lie olemniy protested that Mr.
swan knew the entire extent of his dcfalcaton and
vet now believe from information about his dealin gs
gathered since he gbsc0nded that his large losses must
have been made before that time and that biz frauds
upon us were a. great recently. but conducted IN
such ways that We did not detect them and may never
know them all
Mr. Swan informed me o. the case nj once. md TINT
Edward stated that be would close up his speculation.
aid return the SecuTites-then lodged as collateral
with his brokers Having conception Of tie IoaQni.
tude OF MS stock speculaiions Mr. Swan aad my self
were both OF the opinion that By holding over him the
threat Of exposure ho would be induced TO retire from
speculations ard make good his distractions.
II this belief and Of cOurse dreadng the effect unon
the firm upon ourselves, though innocent, and upon
yourself the rest OF Eiwards reatyes Of the pnb
iiciy OF such transactions these We permitted the
matter to run along. Edward was not aware OF tny
knowledge on NY part, but told that all the part.
peTs would be informed he did not keep his promise
10 at once close his speculaons, and our prop
ery and then retire from the firm on some pretext OF
other. All this he engaged ~ DO with the utmost
solo unity % word and manner.
Time passed on however and he failed TO make good
his PROMISES and about the 4th OF this month told
Mr. Swan that We must make one more effort 10 force
Edward to a settlement; and If that failed must iniom
you of the facts Mr.. Swan, Therefore sent him the
note, Of which now hand you copy, and which 1as
partly composed by myself stating that If the property
was not ell returned by the 18th he should inform all
the partners OF the facts and urging and mporIg him
to act as he had promised
Before the 18TH the detection by other parties Of facts
Of different nature resulted in the night OF Edward.
and the nature of his past defacatlOns, and
the hopeessness Of expecting to regain the securities
taken, was disclosed 10 us-tle loss being Sufficient.
when augmented by the very heavy sums OF money
Incorporated by him within day or two Of his dc
parture, 10 cripple and destroy our house.
Mr.. Swans name alone appears on the note uclosed,
but an equally responsible for his course, and must
with him bear the consequences
have only TO add that while we finally saw that the
firm would in al probability lose heavily. neither Of
US ever for a moment contemplated the possibility Of
such losses from Edwards dealings as could iIjure
our creditors. Respectfully yours
1Hos. BEIKsAP JR.
FRIDAY. Aug. T. 1865.
DEAR EDWARD: was in hopes that you would have
before this closed up your outside operations az you
pronised and returned the securities Of the firm which
YOU have been using for your own purposes i am
satisfied however that you as deeply engaged as
ever in these speculatons and tell you frankly that
knoe that the amount Of distractions from the
sets Of the firm much greater than you admitted 10
be the case when first spoke 10 you upon this subject
many securities being taken Of which have not spoken
TO you Now have no wish to ipure you, and IL you
are in officially you will find myself. and have no
doubt the other junior psrtne ready 70 do every thing
that can be done 10 the matter TO sd you out your