The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-28
Interviews with Prominent
Banking Firms.
WHAT THE COTTON BROKERS SAY.
Ex-Judge Shipman APP
pointed Assignee.
A FURRY and a Rally on
Wall Street.
STATEMENT BY Mr.. W. BUTLER DUNCAN.


Shortly before eleven O'Clock yesterday morn
ing 1t was rumored that the old established and
well known banking house OF Duncan, Sherman
Co.. at the corner OF Pine and Nassau streets, had
suspended payment and closed Its doors. At first
this rumor was looked upon as hoax, and there
were but few who gave any credence to it. few
minutes, however, put the matter beyond
doubt for an Official bulletin had been
sent to ana read in the Stock Exchange giving
notice Of the failure. Then, too, 1t became known
that the cheeks OF the firm, which are usually
passed through the Clearing House by the Bank
or the State OF New York, which acted as agent
for Duncan, Sherman Il Co., had been thrown
out. Even then the news was hardly believed to
be true, and hundreds OF people at once
POSTED OFF FOR TIE BANKING HOUSE
TO satisfy themselves. On arriving there no room
was left for doubt. The heavy iron front doors
were closed tightly, as also was the door leading
to the private entrance. Many who were In
terested TO the extent OF some nunereds or thou
sands OF dollars endeavored TO effect an
entrance, but without avail Tor to all knocks
and attempts made for admission no reply
was returned other than an echo. Each
moment as the news secured wider
circua ion, brought fresh additions to the crowd,
which assembled on the sidewalks and in the
ton and peerng cu:iousy in at the clerks whose
heads could just be seen above the window sills,
stopping over their books, regardless OF the heat
and the danger OF sunstroke. There were natu-
rally all kinds OF reasons stated to account Tor
the stoppage. Some said that 1t was
on account OF heavy losses IN grain.
Others advanced the theory that it
was over-specuation In gold. Then again some
one else would say that he had positive Informal
ton that the lrm had been swamped by carrying
too much cotton, while yet again 1t was laid to
connection with certain English houses which
have lately failed. what
THE IMMEDIATE CAUSE OF THE FAILURE
was has yet to be ascertained, for no direct or
positive Information In this respect could be OBJ
tanned yesterday. The members OF the firm
throughout the day refused TO see any one but
their legal adviser and most intimate friends,
and beyond the card which is published else
where, they stated their inability afford any In
formation at present even as to the probable ex-
tent OF their liabilities assets.
Later on in the evening, however. an interview
was obtained with Mr.. w. Butler Duncan the
head OF the frm published elsewhere, which WIZ
be read with interest as 1T contradcts distinctly
and decidedly many and most of the rumors
which Coated around throughout the day.
THE FEELING ON THE ''sTREEF'
and among bankers generally appeared to be one
Of sympathy for ana regret that such an old estab
lished house should have been compelled TO Ego
by the board.n For, as was said on every hand
Duncan, Sherman Il Co. had always had the
confidence and esteem OF every one 10 CONNER
cial and financial circles. Those who are usually
well informed on such matters expressed their
utter inability to account for the failure. With
some OF the more prominent bankers the idea ap-
peared TO prevail that the firm had been Tor some
time meeting with Ineavy losses on cotton, both
on contracts and on cotton shipped to Liverpool.
They also argued that large number OF the drafts
which Duncan, Sherman d Co. held on cotton
houses and spnners on the other side had been
returned lately unpaid and had to be provided
for, which, taken into consideration with the sup
posed large amount OF funds the firm had locked
up In unmarketable securities, crippled its
credit as to compel 1t to ADOPT the only course
left open-viz, to suspend. The 1rm is credited
with being largely interested in the ponds OF the
Mobile and OHIO Railroad, which 1t will be re-
membered, was lately placed In the hands Of
receiver. Then, also, 1t is said to have invested
heavily In Atlantic and Pacific stock, in Alabama
bonds, In Great Western BONDS ana also ID Erie.
WHICH Is THR CORRECT THEORY
q few days time will prove. friend OF the firm
stated that the house was not burdened with any
outstanding foreign exchanges not yet presented,
and that 1t is not in any way involved in advances
upon cotton, but that the failure is the direct
suit OF large advances to Southern and South
eastern railways which have never paid. the
same gentleman stated that the credits OF the
house are mainly held on the other side and in the
south, and that New YORK would not suffer by the
suspension.
Cotton men, on the other hand, assert that the
failure will not AFFECT any OF their number, and
attribute the suspension entirely to dealings In
railroad securities. They, however, reluctantly
admit that the firm did q considerable business in
cotton but that IL has no complications here, and
that whatever the trouble, II any, that has arisen
from this cause was brought on by the failure Of
certain houses with which Duncan, sherman
Co. may have done business No failures or COM
plcations are expected TO follow this failure
among the members OF the Cotton Exchange.
There win be, 1t is thought possible, some few
minor bankers and banking houses who Will have
to follow in the wake OF tns larger and better
known urn; but they WILL it Is believed. be so
small In amount aS to cause no concern to the
public generally. In TACT the
EFFECT OF THIS sroPPAGg
appears to have already been discounted
As the afternoon advanced the crowds around
the bank grew larger and more dense; but there
was an absence OF the scenes which are usually to
be witnessed in the closing OF the doors OF bank
by reason OF failure. In this instance there were
no aged widows and others concerned, on the
first SOUND OF alarm, to eagerly nock to the inati-
tuition wherein was their little All, in the hope
Of being allowed to Withdraw IL, but in fact
only to meet with rebuff, and then TO
go wandering around bewailing their lot,
or else 10 clamor at the door for entrance. The
greater part Of those WAC assembled IastsrdaE