New-York tribune., 1876-10-16
LOCAL MISCELLANY.
DUNCAN. SHERMAN & CO.'S FAILURE.

DUNCAN, SHERMAN 81 CO.'S FAILURE.
TELKGRAMs READ AT THE EXAMINATION, SHOWING
EFFORTS TO SECURE CREDIT.
In the examination Of William Butler Dun
can, the bankruptcy matter Of Duncan, Sherman &
Co. before Register Ketchum on Saturday. number Of
cable telegrams produced which passed between
MI Duncan and his father Alexander Duncans and be-
tween Duncan. Sherman & Co. aud Barring Brothers
and others Before the dispatches read, Mr. Dun
testified that short time before the firms suspen-
he went 20 Europe to obtain funds for the perma-
nent relief Of the frm and asked the Of 100000
from the Earrings his fathers guarantee; at that
time the firm had letter of credit for 4l5OO0O on
Union Bank Of London THIS credit had been used to
the extent OF 100000, and the colaeras Tor the re-
mandeF, 100000, in the hands OF Mt Duncahs
father These cO1terals which were subsequently sur
rendered TO the assignee Judge shpman, included the
Spies and Slater mortgages and also that on the fnest
property The application Barine for the 100000
was based upon the condition Of obtaining Alexander
Duncan's guarantee. Mr.. Duncan had had no confer
ence with his father previous TO his application to the
Barngs About this time he sent the following telegram
from william Butler Duncan to Alex lnder Duncan;
July 23-G:3Op. M
After careful examination Of assets find loss large
assets counted good really worthless showing lakS e
hciency; large liabilities. Utmost secrecy imperative;
nobody suspects confidence unmplired; but unless
honest continue misleading public bur with such avail
able in of need no difficulty Have seen ward VINO
cables Barring. II refused we must fai ana uisaSouSS'
Immediate answer imperative
An additional telegram sent as follows;
If Earrings grant open credit without security will yon
guarantee Ultimate pdNmentf
In order to counsel in framing nterrogtones IN
tolgently, Mr.. Bangs, counsel for MI Duncan, read
large number Of dispatches, among them the fohOwng
Alexander Duncan to William butler duncan
Must not involve family. Barring telcglaphs me see
him Monday will do utmost consistent Witl my dGly 10
family Answer Edinburgh.
William Butler Duncan TO Alexander Duncan
Until nov deceived ourselves keeuiug on books worth
less accounts, calling them good dOuby worthless ss-
pension. Becoming OF real situation 70 dll ASK
new confidence OF public dishonest II we can obtain
authority asked with such in reSeIv" would warrant CON
tinuance and provided kept perfectly secret, probably
little used Legitimate business extremely valuable;
prospects never better . ,-
Don't deceive yourself; your guarantee without secnr-
fly asked 10 sucn extent as duty permits
Alexander l.. Duncan to William Butler Duncan
Father too unwell to come last night. Have
Barngs who say 4OO they do not ike 10 take guarantee
for so largo If offered. just seen cable from ward
saving he hope saving. even "lth money bdfS
secs IatheT, however tomorrow morning Cable lhsruc-
tons London.
If Barngs knew Of bank credit secured by bank build
ing night they not object TO 200 additional ulhlHs iVV
tOtali shall meHtlUn tomorrow OF WlNiiey tO-hSh''
William Butler Duncan 10 Alexander 1" duncan:
Speak frankly to Barngs. If they refuse everything
try TO cable authority 10 draw for &IOcOHoi WIN
this gain time and your risk limited to It. Don't s&y
auvthing TO bank. Gable definitely early tomorrow.
Unless this entire matter Is arranged honesty com
Iels me to suspend Immediately. Therefore lompiyle
Alexander Duncan to William Butler Duncan:
TUESDAY, July 27--1O:lJ q. NJ
Barings refusing Answers hopeless. agree
Bank credit being covered could protect circular
notes il within reasonable amOunti lmpOsslDic Win
Barings TO save; did utmost o,
Legal opinion taken by bank saws special credit is can
ceed by failure unless drawn under very special crcuH-
etunces.
The examination was then adjourned untl Thursday