Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-28
A Statement to Their Creditors.
RumOrs in Regard to the Failure.

amount. The losses which have weakened
the house are not entirely Of recent making,
but cover several years, the heaviest, it is
understood, having been in cotton and the
next in securities, which now have doubt
full value. Il is due to VIM. Butler Dun
can to say that had he had the disposition
TO take chances, the credit of his house was
sufficiently good to have enabled him to
have got means necessary to have bridged
over his bills on London, sold yesterday
close Cd to those of the four prime names
Of men of honor. However he took an
honorable course and stopped while he had
something TO divide. Refusing new bust
ness, he endeaYOred to get capital enough
to pay every demand which could possibly
be made on him, but failing in that, wisely
concluded to suspend.
The Post will also publish the following
statement to creditors, prepared by Mr..
| Duncan and read at the Stock Exchange:
Nelc York, JUlU PA careful exam
ination Of our business and affairs shows
us most Unexpectedly that through losses
I and misfOrtunes our available assets are so
reduced that we are compelled 20 go into
| LIQUIDATION. We reach this conclusion
with deepest regret, but the fact that up to
| the latest moment our most UDeKanpled
|
have compelled us, if we continued bust
ness, to hazard new obligations aud incur
| new condolences, which we were unwilling
to assume. For the protection Of all our
creditors, without distinction or preference,
| we have this day made a general
assignment to the Hon. VIM. D. Shipman,
1 Of this city, whose address for all matters
connected with our affairs will be at our
banking house, No. IL Nassau street.
DUNCAN, SHERMAN X Co.
The greatest excitement prevailed in the
| lower part Of the city as soon as the rumOr
( of the suspension began to be circulated.
Il was at first hardly believed, as no suS-
| piciOn Of weakness Of the house had been
| entertained. The truth, however, was soon
made apparent by the closing Of the iron
doors OF the great stone building on Mas
| sau street. a large crowd soon collected,
| the majority Of whom, however, were at
| tTacted by motives of curiosity rather than
| interest. The suspension was everywhere
| the subject Of conversation, and the
most contradictory and absurd rumors
were in circulation. Many attempts were
/ made 70 gain admission to the building,
| but the doors remained Obstinately closed.
i Inside numerous clerks cOulf be seen at
! their desks busily engaged with their books.
/ Many absurd stories were set atiOat 10 &C
/ count for the general excitement, among
! them, one 10 the effect that Commodore
| Vanderbilt was dead. Il is admitted the
| house has lost very largely on cotton; in
/ fact, thai is the principal loss. Involve
| menis with various railroad enterprises,
/ old and new. also entailed losses on the
| house. Liabilities are understO d to be
between five and SIX million dollars. Mr..
| Duncan returned from Europe about two
! weeks AGO, and has since been making
! careful examination Of the assets, and finds
| thatthey are largely inadequate. He resolved
| 10 endesvOT to get new cash capital, and
/ having failed TO do 50, determined to sus-
| pend and make a general assignment for
| the benefit Of all creditors, the assignee be-
| ingteX-U nited States Judge VIM. Shpman.
| The Indebtedness is distributed over all
this country and Europe, a considerable
/ amount being in the form Of letters Of
| credit held by travellers. The house was
founded in 1870 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 eE
| pressed for the firm, and particularly VIM.
Duncan. The credit of the house was
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 Barring Bros.
| Their bankers here vas the Bank Of the
Stateoi New ! ok, which, !, is understood,
| is fully protected.
| The effect Of the suspension Of Duncan,
| Sherman * Co. upon the Stock Exchange
/ was, as usual in sudden panic, much more
serious for a short line than the circum-
| stances of the failure in their bearing on
| Wall street ought to have created. The
! fail in Western Union Telegraph was as
\ much as Q per cent, but 81 or per cent. Of
/ this decline was soon recovered. Pacific
| Mail, > per cent, and half Of this fall was
| recovered. Western railroads fell from
| tC / per cent, and New York Central
| Der cent. This last was partially caused
| before the failure by false IUmOr Of Van
! derbilt's death. BY 1890 the excitement
| in the Gold Room had somewhat abated,
and sales were making at ll4all45.
Stocks were also on the recovery, and
the sober second thought Of the
| brokers and spectators seem 10 be in the
direction of more rational opinion. IS to
| the effect of the failure exchange is uptO
| the full shipping rates, and the probability
| is that shipments OF gold will be resumed.
| Il is thought that recent heavy failures
| in the Manchester cotton trade have some
! thing to do with the immediate embarras-
| ment Of the house. They have been by
far the heaviest buyers Of cotton in the
| American market for several years, most
| ". twas understood, for Manchester. The
| belief was that orders were generally eX-
| ecuted on London banks or bankers credit,
| but if L turns out thai they trusted 70 any
| extent, such concerns as the Messrs. Caliiein
Manchester it viii be misfortune which
| no ordinary prudence could guard against,
seeing that these houses had the confidence
Of London to the extent Of untold mill
lions sterling. There is a belief that most
| Of the bills now running are under q strong
acceptance on the other side, sayiby MessrS.
| Barring and the Union Bank Of London.
The outstanding travellers credits Of Dun
can, Sherman & Co. are on a different foot
ing. and may cause serious Inconvenience
| to some of our people now abroad. Il is
| understood that full statement Of affairs
of the house is now in preparation.
RumOrs in Regard 10 the Failure.
The failure Of Duncan, Sherman * Co,
which was announced soon after ! o'clock,
caused the most intense excitement on the
/
sion is not as yet ascertained, and various
rumors are afoat, among which is one TO
the effect that their difficulties have been
precipitated by the failure of A. & ".
CsIlie, of London. Another report says
their principal correspondents abroad were
the Union Bank of London and Barring
Bros. In 1873 arrangements were made
with the Barring firm by which
! Duncan & Sherman were 10 be protected. 1t
is supposed that the Withdrawal Of that
protection this morning was the immediate
cause Of their failure. They lad opened
their clearinghouse when a cable telegram
from London decided the firm to suspend.
1t is no little surprise to learn that when
house Of hTst-class could get paper dis
counted al 4 per cent the firm OF Duncan,
Sherman X Co. was rated at per cent.
The firm, or at least some Of its mem