The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-07-28
BY TELEGRAPH.
THE FAILURE OF DUNCAN,
SHERMAN & co.
Probable Causes of the Suspension.
Excitement in New. York,

Sherman & Co. 8 Office were closed at :25
o'clock this morning. Only in general way
can the causes of the suspension be ascer.
tanned. It is admitted that the house has lost
very largely on cotton; in fact, that is the
principal source of the loss. Investments
with various railroad enterprises, old and
new, also entailed losses.
The liabilities are understood to be be-
tween five and six millions. Duncan returned
from Europe about two weeks ago, and has
since been making close examinations of his
assets and finds they are largely inadequate
He resolved to endeavor to get new cash cap
ital, and having failed to do SO, determined
that it was best to suspend and make gem
eral assignment for the benefit of all creditors
| The Indebtedness is distributed all over this
country and Europe, considerable amount
being in the form of letters of credit held by
travellers. The house was founded in 1850 BY
Alexander Duncan, Watts Sherman and w.
Butler Duncan, the latter the head of the
present house. The present firm has been in
operation about ten years. Great sympathy
is expressed for the firm, particularly for Mr..
w. Butler Duncan.
The credit of the house was good up to the
hour of suspension and had Mr.. Duncan
chosen to avail himself of this fact the house
need not have suspended. The greatest ex-
element prevailed in the lower part of the
city. As soon as the rumor of suspension
began to be circulated a large crowd of people
collected, the majority of whom were at
tracted about their Office.
Many attempts were made to gain admis-
sion to the building but the doors remained
obstinately closed; even telegraph me SEN
ger was unable to gain admission until he
bethought him of the back entrace on Pine
Of and fhon ho 1oI IN
hand in his dispatch through an iron grating.
Inside the numerous clerks could BE- seen at
their desks busily engaged with their books,
but entrance was denied to all. At o'clock
there was still much excitement in the neigh
borhood of the banking house, but no new
developments of importance had occurred.
1t is understood that full statement Of the
affairs of the house is in preparation.
New YORK, July N-The following an
nouncement has just been made by D 1ncsn,
Sherman Il Co.: A careful examination Of our
business and affairs shows us most unexpect-
eddy, that through losses and misfortune our
available assets are so reduced that we are
compelled to go into liquidation. We reached
this conclusion with the deepest regret, but
the fact that up to the latest moment our I'M
exampled credit having remained unimpaired,
would have compelled US, if we continued
business, to hazard new obligations and re-
ceive new condolences which we were not
willing to assume.
For the protection of all our creditors
without distinction or preference, we have
this day made general assignment to Hen.
W. D. Shipman, of this city, whose address for
all matters connected with our affairs, will be
at our late banking-hous No. IL Nassau
street. DUNCAN, SHERMAN & Co.
The Posts third edition money article says
fvo <ha ~
opinion is that not more than G75, 600 of the
bills of the house are outstanding and un-
accepted, it being the dull season with them,
a good part of their exchange business having
been made on cotton.
Az to their assets, 1t is feared that large
part of them will be found to consist of
Southern securities. as we'll as those of other
roads like the Atlantic and Great Western,
which have doubtful value in the market.
The failure of Duncan, Sherman & 90.
caused at first much excitement among deal
ers at the Cotton Exchange, as the operations
of the firm in cotton were known to have been
very heavy. As the house is said to hold
large amount of cotton in Liverpool, it is
feared that the failure will seriously affect it.
The contracts in this city were settled,
however, before the failure, and the depres-
sion which it caused on the market here was
due to discounting the probable depression
in Liverpool
At late hour this afternoon it had been
impossible to obtain q complete list of the
creditors of Duncan, Sherman & Co.
The names of the principal creditors were
declined for publication, as the submission,of
the names of few out of many who are in
terested in the failure would, in the estima-
ton of the firm, be neither of use to the
creditors as body or to those principally
interested. Some time will elapse before it
will be possible to submit detailed state
ment of the condition of the house.
The assets can only be guessed at, but will
be less than the liabilities. About three |
fifths of the debts of the firm are held
abroad. Mr.. Duncan is said to be deeply
affected by the misfortune which has over |
taken the house, but he was to day personally |
occupied with counsel and otherwise in ad- |
listing bis affairs preparatory to definitely |
to his creditors the condition OF |
The house.
At o'clock Judge Shipman, as assignee,
ook possession Of all the books and papers
n the banking house.
The Erie Railway is no way ff.cted by the
allure, as it's accounts with Duncan, Sher-
nan Co., we're closed six months ago.
WASHINGTON NOTES.