The New York herald., 1876-02-11

weeks past IN visiting and conversng With cfedi0fS
to induce them sign said petition these respondents
are now Tor the FIRST time fully informed Of that fact
and are very grateful TO their clerks for displaying 80
much interest In their affairs; but they say II is NOS
true, and they deny that by or with their knowledge
approval or consent il has been held forth creditors
by the alleged or any agency Of the bankrupis, as
persuasive argument or as a favorte argument that
there advantage 10 the creditors For
helping 10 obtain discharge thai William B. Duncan
would be able to procure money from his father where
with to recOmmenoe business So far these respond
enis know believe no such nducement has been held
out This respondent William b. Duncan not having
any definite recollection upon the subject but speaking
with reference TO convictions and Impressions long
sting In his mind says that he has doubt that
he has alleged creditors that their prospect Of being
ultimately paid after the property assigned to William
D. shipman should have been applied in satisfaction Of
the debts OF Duncan, sherman & Co., would bo
greatly improved II this respondent were legally dis
charged from the obligation 10 his debts and at ber
ty work for tho benefit OF his creditors and this
respondent says that in communicating that sentiment
TO the creditors far as he has communicated II, no
believes no has simply stated rue tha mas oeeh lonnd
TO be universally In mercantile and business life
and he reeTates the sentiment II he has ever stated t
before that taking into account his present situation
and that OF hts partners and the quantity ana Yuo Oh
the fund existing for the payment of his debts he sim
cerey believes that oil his creditors stand better
chance Of being ultimately PAID in full or large pro-
portion of their claims ii he is discharged from his
debts according TO law than they will have II he IS IN
popular phrase kept under The harrow and subject all
his life 10 process Of and execution or either
for debts which he cannot pay.
And these respondents say that they have never held
other person has held out BY their authority or with
their consent express implied, that such or any oil
the creditors as should sign me pesuoh against sSo
banrupts after they obtained thor discharge or would
payments In addition to what they derived rom
the bankruptS' estate.
In respect to the allegation of tho said jane Ferrcro
that appears by comparison OF the schedule sworn 10
By the bakrupts under the assignment made by them
pursuant the Of the State OF New York. and the
list of the claims OF the petitionng creditors in this
proceeding that the amounts therein have been In
fnQtn h
standing that the assignee has not declared any
dividends, these respondents say as follows:-That
there are apparent discrepancies IN some Instances
between the claims of creditors stated In the schedule
annexed the voluntary assignment and the claims OF
the creditors as stated in the schedule in bank
ruptcy and such discrepancies arise from this fact
The firm OF Duncan- sherman q Co. and It's prede-
cessors been engaged in business for about twen
ty-hve years and they had done during all that period
large foreign and domestic banking and credit and
commission business in transactions over nearly tho
whole civilized world thcy issued letters OF credit to
points as distant as japan and New Zealand and all
points intervening Their business was very ex-
tended and complicated and in the full tide OF it's
extended diversity and multiplicity OF operations when
il was suddenly arrested by the fact coming 70 the
knowledge of these respondents tnat ther capital was
very largely impaired and that they could no longer
conduct their business and by the failure of efforts
by them TO obtain additional means for conduct
ing their business, which, however, they had great
hopes of accomplishing up to the last moment. Many
OF the balances which stood upon their books were
subject adjustment and subject To be affected
by contingencies and events which either
had not happened or which had not been
have happened, ana the process OF ad
ustment has gone they made their assignment
TO judge shiman aud since they made their inventory
of August 1875, and the apparent change In balances
appearing from comparison of the inventory under the
voluntary assignment with the signed 10 the
voluntary petition has arisen from corrections of
and adjustments the reduction of contingencies
ceriantes and not from actually transactions
curling si1ce the assignment except that in in
stances securities have been realized upon but those
respondents have not got the credit OF realzaons to
as large extent they expected TO at the time Of
making their involuntary assignment by reason OF
which apparent balances appear to have been created
which, in fact existed at the time Of the voluntary
assignment no balance in favor OF ony creditors has
been etbor increased diminished since the making
OF the voluntary assignment by tho payment Of any
money TO such creditor, except in few instances
where creditors may have realized on securities held
by them at the time OF the assignment.
But these respondents say that II is not true and
they deny that this bankruptcy proceeding Is under
taken TO defeat any of the purposes indicated by the
Bankrupt laws as legitimate ends of the inyolun
tary petition, but II is not true and they deny that
This bankruptcy proceeding has been designed solely
for the benefit or cmolument of the debtors thom-
selves for any Illegal deceptive or fraudulent pur-
pose whatever although they say 1t Is true and they
cecdng they lawfully can, and they hope they cam
for the purpose OF obtaining dischzrge from the'r
debts under the advice and with the conviction
and belief that it nethor Illegal deceptive nor fraud
apply for discharge OF their debts under the
law of the land.
These respondents further say that it is not true
and they deny that they any person in their behalf
have has procured the consent Of any Of the credit
ors for their discharge, influenced the action OF
any creditor at any stage OF the proceeding by any
pecunary consideration or obligation And they say
that is and they deny that thereby or other
WISE so far as they know, they are disabled from
obtaining are disentted TO a discharge from their
debts
And they further say that it is not true and they
deny that the participation OF the alien creditors in
these proceedings has or could have no other oDect
than tie forwarding Of the discharge OF the debtors or
the ultimate advantage Of the foreign creditor by such
class potoning creditors receiving some reward tor
uniting In said petition and, the contrary, they say
that the said participation OF said alien creditors as
these respondents understand was for the object OF
enabling such aop creditors 70 get the % oencot ler
them their equal proportion OF the property Of the
baukrupts and TO protect the property of the bank
rupts rom being msapplicd and misapproprated oy
such suits that OF the said Jane Fcrrero and tho
Fourth National Bank and others.
This respondent, William b. Duncan, saith that
there is one paragraph the petition of the said Jane
Forrero which Absolutely true which Is tho para
graph next Immediately preceding the prayer Of said
W. WATTS SIBERIAN.
FRANCIS II. GRAIN.
In answer TO the charge OF hostility the part of
Hottnguer Co., Mr. Duncan stated that in Septern-
ber 1876 ho wrote TO Hottlngucr Co. thus:-"We re-
gret you should have expressed yourselves to the hold
ers OF drafts you are reported to have done"
subsequently Duncan, Sherman Co. received from
Hottnguer & Co. letter from which the following is
an extract-We cannot understand that part Of your
letof referring TO what we are reported to have said TO
the holders of your drafts and We can only reply that
you have been misinformed. We have never failed to
express to every ono our most sincere sympathy for
you, anu we nave Tue ueepcst ieSiet yVu Vvutu
suppose could have othor sentiments than those
which our long standing relations must dictate. I"
further answer of Duncan, Sherman < Co. to peti
ton of Jane Fcrrero contained in Mr.. Duncans
answer, and shows substantially that when Duncan,
Sherman Co. failed there was balance on the books
OF said nrm TO the credit Of Theodore Moss of Wal
lacks Theatre Of $l005o 06, of which t66l4 10
sisted of the proceeds of charitable theatrical per-
formanco given gratuitousy by members Of the theat
rca profession for bcneGt of the destitute widow
aud children Of the late Dan Bryant Mr. Alexander
Duncan took from Theodore Moss assignment OF so
oc 1,oIa eta IN Nv MOoof
represented the said charity fund OF which the widow
and children OF Dan Bryant were in great need; and
Mr. Alexander Duncan paid 10 Mr.. Moss $66l4 1e, and
received from Mr.. Moss assignment Of tho latters
claim for the S6Gl4 70.