Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-08-13
NEW YORK.
Indebtedness of Duncan, Sher.
man & Co.
Sharp Practice by the Firm.
Distress of Holders of Letters
of Credit.
Acceptances AfiOat for $780,
600.
RumOred TeIegraphic COnsOli-
datiOn.

NEW YORK, Aug. 12.-The discovery
has been made that a large amount of in
debtedness of Duncan, Sherman q Co
consists of accommodation paper, in the
form Of drafts drawn on them by a conf
dental clerk in their office, and accepted
by them and sold to various banks through
note brokers. Ofthis species of paper proba-
bly, not less than five hundred thousand
dollars is now held in Providence, where
the family Of Mr.. Duncan has been long
and favorably known, and the agent met
with little difficulty in disposing Of it. One
bank in this city holds $4,000 of these ac-
ceptances, another $4,000, and still
another $4,000, besides smaller amounts
in the hands of numerous persons. One
banker characterizes this issuance of ac-
commodation paper as the
SharPest Kind of a sharp Game,
the impression of the acceptor being that it
was drawn against merchandise and Sc
cured, but Mr.. Duncan says the proceeding
was entirely straight and more or less the
practice of the house for twenty years.
The announcement is made that letters
of credit for which the father of Mr.. Dun
to about $4,000. A correspondent writing
lAOlA 1 al ID says LNOl q LoAA AOuA HAooNo
that l do not hear Of
Cases Of Distress
arising from this failure. Probably the ma
jority of losers are persons to whom the
event Will be real hardship, as they have no
reserve fund upon which to re.y. A widow
who came TO Europe few months AGO to
reside here and educate her children, de-
posted all her money with Duncan, Sher-
man & Co., and took their letters of credit.
She has not ten dollars in her possession,
and there are rent and school bills due.
Her excitement and alarm are so great that
her friends
ApRrehend Insanity.
There are many teachers, students, and
others, in exactly the same condition, and
they are not only in Paris, but all over the
Continent. At least four Americans who
heard of the failure before the news reached
the ROthschild's agency, secured their
money and have retired from Paris to avoid
trouble. One of the four was visited by
the cashier of the agency, who demanded
return Of the money, which was refused. A
policeman subsequently escorted the gen
tleman 10 the American Embassy, where
Minister Washburn told the cashier he
could not make the arrest. you can only
seize his baggage, and l advise you not TO
do that The cashier concluded he would
wait, apOlogiZed and departed"
The EUening Post has called on Duncan,
Sherman s. Co., in regard to their accom-
mediation paper, about which so much was
said this morning. A member Of the firm
informed a reporter that the bills were
placed in the market in a manner which
appeared perfectly legitimate to tine firm,
according to a practice that prevails to-day
with houses. of good aud extensive credit.
The total amount of acceptance issued was
estimated to be about
One Million 1'WO Hundred Thousand
Dollars.
or this S5j0,00O were held in Rhode Is
land. A considerable part remains in
other parts Of New England. In regard
to letters of credit for which Alexander
Duncan had become responsible, they are re-
ported il a morning journal TO be but
$4,000. II was said the aggregate in
debtedness of the firm would reach about
$4,000 for which Alexander Duncan had
deposited about S2OOOOO.
Bond FOrEeTs Arrested.
The EUening Post also furnishes the
following: -Four men have been arrested
for participating in fOrgeries of California
and Oregon railroad bonds. Most Of the
money advanced on bonds has beer recoy-
cred.
Two meetings of the Executive Com
mittee of the
western Union Telegraph Company
were held yesterday, when it is believed
were considered negotiations for cOnsoli-
dation with the Atlantic aud Pacific Com
pany. President Orton says: 81 am not
prepared Just now TO make any statement
in regard to the meetings" and Vice Pres
ideDt Green says he ''dOn't think it right
that the dOings of this corporation, in all
its details, should be revealed without per-
mission of the President"
President OrtOn, of the Western Union
Telegraph Company, in published letter
this afternoon, says the Western Union
Company can use to advantage, and may
absolutely require, within the next twelve
months, ten thousand miles of additional
wires. If these additional facilities can be
acquired Of the companies now using them
in competition with us, cheaper than We
can erect them, it clearly would be to our
interest TO buy out such companies rather
than TO erect new wires; but we have made
no proposition for the purchase Of any com
peLing lines, and no proposition has been
made us that would be acceptable.
TIItOn's Libel Suit.
Notice of the trial of the 100000 libel
suit Of TheO. TiltOn against the Brooklyn
Eagle and Fhos. Kinsella, was entered
this morning in the Brooklyn city court
for the September term.