The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-07-29
SHUTTING UP SHOP.
FAILURE OF A PROMINENT FIRM

THrSDER IN A CLEAR sKY-A FIRM OF UN
BOUNDED CREDIT PASSES IN ITS CHIPS
HONORABLE CONDUCT OF WILLIAM BUILEH
DUNCAN-A FURRY ON WALL STREET
sURSIsEs AND CoNJECTUREs.
NEW YORK, July 27.-Duncan, Sherman
Co. suspended this morning, causing great
excitement in Wall street. Gold jumped to
81 1917 upon the announcement OF the sus-
pension of Duncan, Sherman q Co. and
the runored EN- b4rrassment of other houses,
but soon fell tosl a. The Evening Post has
the following in its financial column the
ouietness of Wall street was broken In the
second hour of business by the an
nouncement that the banking house OF
Duncan, Sherman Il Co. had closed their
doors and suspended payments. a clap OF
thunder in a clear sky could not have caused
more CONSERVATION, and at the Stock tx
change, Gold Exchange and Cotton Ex-
change there was great excitement. Inc
liabilities Of the house are given al inside
Sc, OOO 600, and it IS admitted that the asse S
fail in value far below this amount.
The losses which have weakened the house
are not entirely ofrecent making, but cover
several years the heaviest, IL is understood,
having been in cotton, and the next in Sc
curities which now have doubtful value.
1t is due to VIM. Butler Duncan to say that,
had he had the disposition to take the chan
good to have enabled him TO
have got the means necessary
to have bridged over. His bills on
London yesterday close on those OF the
four prime names. AS man OF honor,
however, he took an honorable course and
atom. I'd while be had something to divide.
Refusing new business, he endeavored to get
new capital enough TO pay every demand
which could possibly be made on him but,
falling In that, wisely concluded TO sus-
pend" The Post will also publish the iol-
lowing:
STATEMENT TO CREDITORS
prepared by Mr.. Duncan and read at the
stock exchange:
NEW YORK, July q, 1875.
A careful examin alton of our business af-
fairs shows Us most unexpectedly that
through losses and misfortunes our availa
BILE assets are so reduced that we are COM
PEELED to 60 into liquidation. Wereach'this
conclusion with the deepest regret,
hut the fact that up to the
latest moment our most unexsmpled
credit having remained unimpaired, would
have compelled US, if we continued busi-
ness to hazard new obligations and incur
new confidence, which we were unwilling
to assume. For the protection OF all our
creditors, without distinction or preference,
we have this day made a general assign
ment to the Hon. VIM. d. Shipman, OF this
city. whose ADDRESS for all matters con-
nected with our affairs will be at our late
banking house, No. IL Nassau street.
(Signed) DUNCAN, SHERMAN & Co.
TIE greatest excitement prevailed in the
lower part Of the city, as soon as the rumor
of the suspension began to be circulated. 1t
was at first hardly believed, as no suspicion
of the weakness of the house had been en-
tertai1ed The truth, however, was soon
made apparent by the closing of the iron
doors OF the great stone building on Nassau
street. A large crowd of people soon col
lected, tho majority of whom, however,
We're attracted by 10 olives of curiosity rather
than interest. The suspension WAS every
where the subject of conversation, ard most
contradictory and absurd reports were 10
circulation. Many attempts were made to
gain admission 10 the building but, the
doors remained obstipately closed. In
eide numerous clerks could be seen at their
desks, busily engaged with their books.
Many absurd stories wirI set st1oa
to account for the general excitement, among
them was one TO the effect that
Commodore Vanderbilt was dead. 1t Is ad
mitted that the house has lost very largely
on cotton. In TACT that is the principal loss.
Inducements in various railroad enter
prises, old and new, also entailed losses on
the house. The liabilities are understood to
be between five million dollars and
SIX MILLION DOLLARS.
Mr.. Duncan returned from Europe about
two weeks ago and has since been making
a careful examination of the assets and finds
that they are largely inadequate. He re-
solved 70 endeaYor to get a new cash capital,
and, having failed to do so, determined that
it was best 10 suspend and make general
assignment for the benefit of all the creditors,
the assignee being ex-United States Judge
William d. Shipman. The Indebtedness
is distributed all over this country and
Europe, a considerable amount being in the
form Of letters of credit held by travellers.
The house was founded in 1850 by Alexan-
der Duncan, Watts Sherman and w. Butler
Duncan, The latter is the head of the pres
ent house. The present firm has been in
operation abous ten years. Great sympathy
is expressed for the firm, and particularly Tor
w b. Duncan. The credit of the house was
good up TO tie hour OF suspension, and had
Mr.. Duncan chosen to avail himself OF this,
his house need not have suspended. The
principal correspondents abroad were the
Union Bank of London and the Barring
Bros. Their bankers here were the Bank OF
the State of New York, which. ii
is understood, is fully protected
The effect of the suspension OF Duncan,
Sherman & Co. upon the stock market was,
for short time than the circumstances Of
the failure in cheir
BEARING UPON WALL STREET
ought to have created. The fall in Western
Union Telegraph was as much as nine
per cent, but five and a half or six pei
cent. of this decline was soor
recovered; Pacific Mail FIVE per cent, and
halt OF this fall was recovered. The West
ern railroads fell from two to four per cent
and the New York Central three per cent
This last was partially knocked down be
fore the failure by false rumor OF Wander
bilt's death. By 1890 the exctemnnt in The
gold room had somewhat abated and sales
were making at 1l41z9ll41s per cent. Stocks
were also on The recovery and the sober sec
ond thought Of the brokers and speculatori
seems to be IN the direction of more rationa
opinion as TO the effect of the failure. Ex
change is up to the full shipping rates anC
the probability is that the shipments of golC
will be resumed. It is thought that TO.
recent heavy failures In the Man,
chester cotton trade have some
inn 1fofs