The New York herald., 1876-10-28
DUNCAN, SHERMAN & co.

MR. W. q. puScAx's EXAMINATION coNTIS-
uED-HE EXPLAINS WHY he SOUGHT RELIEF
| FROM DARING BROTHERS IxsrRAD OF AT
ONCE ANNOUNCING SUSPENSION.
| The examination OF Mr. William Butler Duncan was
/ continued before Register Ketchum, ~ the Bennett
| Building, yesterday. Mr. f. \. Bangs appeared as
| Mr. Duncan's counsel and Mr.. +. 7. Brown acted
examiner Tho following is . ropor. OF what was done
! during the session.
Referring his testimony OF The last examination
as TO coatcras connected with tho letter Of credit of
the Union Bank for ESQ 000 Mr. Duncan said that all
the colateras connected with that credit and in hrs
alexander Duncah's) hands At the time OF the failure
we're surrendered 70 Judge Shipmam
Mr.. Brown, examining counsel, produced printed
book which he said he procured from Il. IL Morange,
attorney for W. A. Roobing and Others in suit
brought by them the Supreme Court against the
members Of tho nrm Of Duncan, Sherman Co.,
draft for E206 3s 3D., dated New York. July 81 1875.
by duncan Sherman & Co., the Union Bank of
London payable at sight favor OF Richard johnson
and others.
Mr. Bangs admitted that the book prepared by
counsel for Duncan Sherman Co. an appeal tax en-
by them TO the Court of Appeals from an the
Supreme Court, mado at General Term, October l3
1876 tLa subject correction Of errors
II any may be used in like effect TO the original pa
pers if produced. The examination then proceeded
with as follows:-
s.Is tho Union Bank OF London . creditor Of Dun
can Sherman Co."
s,Non
..Have they proved . claim against your nrm
hcregn
objected to- giving credit 10 the witness for too
much In, diligence. Question excluded.
ado your schedules In bankruptcy show that the
bank Is . creditor?n
objected TO, the ground that the schedules will
show. Objection sustained.
'In the cabcsram put In evidence at the last hear
ing the following language is used - Large liabilities;
utmost secrecy imperative; nobody suspects; conf
aenco unimpalred, unless you secure $50 addi-
sonal from Barnss feel |. dishonest contiE ung 10
misead the public How long had you been msiead
ing the publ'cr"
long did knowingly misead ityv asked Mr.. duncan.
II mean in the sense IN which you used u IN that
cablcgram" answered Mr.. Brown
I'm that sense intended TO say that from that time
shocd mislcad the public II continued business"
Former question repeated and objected to-
ing that he had mlsied the public at ALL Objection
sustained.
II had not, Knowingly"
Question repeated. Answer
'Ycs, with explanations 70 qualify such answer"
"How long had you been misleading tho public :"
Objected TO as assuming that the witness had misicd
the public.
last answer alter word yes, not responsive.
The Register ruci that It would bc very unjust to
allow tho notion and stated that the witness can
make any qualification or explanation he thinks
sary.
had not been misleading the public nj ALL How long
the public had been misicd would imply knowledge Of
what the public thought; can't answer for tho
pubic"
Your cablegram says:-sNobody suspects Con.
fdcncc unmpaired What did you mean by thatY'
ITO answer that question properly Is will be neces
sary for me TO explain as far as can what caused
me TO use such words In tho telegram have already
stated IN my previous examination taat saw Barings
agent on ;he 23d and sent kilograms at that time.
The reason OF my seeing Mr. Ward and sending the eie
grams was the receipt OF letter IRON one OF Bnrngs
nrm, putting question which caused me to examine
carefully into the situation OF our affairs arrived at
the conclusion TO their situation the afternoon Of
the 22d at once said TO my only partner then pres
ent, Mr. Gram that felt mad right commune
BUSINESS that although the letter from the part
ncr Of Bar,pgs could DO answered by mall II was my
duty communicate the facts TO their con-
1dcntal agent Mr. Ward. think called once that
afternoon al irr Wards office aud found him
aoscnt and not TO return uuti tho day.
needed counsel and advice. Almost every friend
| had was out OF town. l went from Mr Wards oicc
10 mat OF my counsel, Mr. W W. Mcfarland. cx-
planned to HIM the situation, and told HIM that iei
must close my doors at once. He asked me whether
there was not some eourca IRON which couli obtain
| relief replied, None except possibly through
Barings, who had large interest with us, aud who
might bc willing 10 grant such relief, and thought
might obtain guarantee OF my ialher TO accomplish
this He tNr McFnr!anq) repned 10 me, You have
no right 70 bring tins CALAMITY upon the community
explained 10 hiin then that our was different
from that OF merchant who .on.d cease buying
| goods and creating liabilities Whenever he chose;
| that with us, bills OF exchange were bought
deposits made ana other liabiities created
wuhost or- action, that tho aid sought Tor
would be totally imperative IL the necessity for
even whispered, and could not continue Tor a mo-
meat witnout running the RISK, and OF failure
dong inusticc aud That !.it, Notwithstanding what
he SAID, that should close at onec. He replied
Granted all that you say, but as friend and yonr
counsel advise and cxhort you - take no stop until
you make the effort with Barirgs In the meantime
do as ltc as you positively without refusing 10
J that which would render aid nciccuva' saw Mr.
McFar.and frequently the 23d 24th and 26Ih, and
each nic used the came argument with and obtained
| from him the sanc advice. | saw Ward the 23d.
concealed nothing from him, and he eabicd what l
told him TO Barngs have since heard. with the cx-
preston on his part that would I've doubtful the
aid asked tor would afford the relief Nothwthstand-
Ing ths with all the facts before them the Barings,
at the request OF my brother continued accept
drafts on Mcndsy, The 10Th, until they could my
father WHO went them the next day He
met ,hcm the morning OF the 27th, and
they declined my request by cable, that
morning therefore, Immediately closed my doors.
think thnt th.e answers your question OF why was
important that secrecy should DO observed in refer.
cnce TO what was sccklng 10 accomplish" Sir.
Duncan here stated that he had applied 10 Mr. McFar.
land tor permission make known the conversation
that hc had with him during that professional nor-
view. and had rcceivcdit
..Did you sell on the 2ath Of Jun any drafts on the
| Union Bank Of Lonuonsp
Objected 10 as mmatcrial Objection sustained
when last, prior 10 July 1878, did you prepare