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


MR. W. D. DUNcAS's EXAMINATION coNT1S-
UED-HE EXPLAINS WHY he SOUGHT RELIEF
FROM DARING BROTHERS INSTEAD OF AT
ONCE ANNOUNCING SUSPENSION.
The exam nation OF Mr. William Butler Duncan was
continued before Register Ketchum, A. the Bennett
! Building, yesterday. Mr. +. n. Bangs appeared as
Mr.. Duncan's counsel, and Mr.. +. F. Brown acted as
examiner. Tho following is = report OF what was donc
! during the session.
Referring to his testimony Of The last examination
as to coatcras connected with tho letter OF credit Of
the Union Bank for ESQ 900. Mr. Duncan said that oil
tho collaerals connected with that credit and In hrs
alexander Duncahs hands At the time OF the failure
were surrendered 10 Judge shipmam
Mr.. Brown examining counsel, produced printed
book which he said he procured from II. Il. Morange,
attorney for W. A. Roobing and others, in suit
brought by them the Supreme Court against tho
members Of the firm Of Duncan, Sherman & Co.,
draft for f296 3s 3D., dated New York. July 81 1875.
by Duncan, Sherman & Co., on the Union Bank of
London payable at sight in favor OF Richard johnson
and others.
Mr.. Bangs admitted that the book prepared by
counsel for Duncan Sherman Co. on appeal taken
by them the Court Of Appeals from an order OF the
Supreme Court, mado at General Term, October IL,
1876 consents tLa subject to correction OF errors
il any may be used in like effect to the original pa
pers if produced The examination then proceeded
with as tolows:-
s.Is tho Union Bank OF London q creditor Of Dun
can, Sherman Co. 7"
.'Have they proved . claim against your hrm
herc?''
Objected to, giving credit TO the witness for too
much intelligence. Question excluded.
"Do your schedules in bankruptcy show that the
bank Is CREDITOR"
Objected TO- on the ground that the schedules will
show. Objection sustained
sIn the cablcgram put in evidence at the last hear
ing the following language used = Large liabilities
utmost secrecy imperative; nobody suspects; conf
unimpalred, but unless you secure $50 addi-
tional from Barings feel It dishonest continuing to
mislead the public How long had you been misiead-
s.By misleading tho public do You mean to say how
| long did l knowingly msead II ~ asked Mr. duncan
II mean in the sense IN which you used It IN that
cablcgram, answered Mr.. Brown.
sIn that sense intended TO say that from that time
I shocld miscad the public II continued businessn
Former question repeated aud objected to, as assum-
ing that he had misled the public at all Objection
sustained
Had you been misleading the publics"
~ haa not, knowingly"
| Question repeated. Answer
| .'Yes, with explanations 70 qualify such answer"
| "How long had you been misleading tho public:"
Objected TO as assuming that tho witness had mised
the public
las, answer alter word .yes, as not responsive
The Register rulcI that II would DO very unjust to
/ allow tho motion, and stated that the witness can
make qualification or explanation he thinks
| sary "
had not been misleading the public at ALL How long
the public had been miscd would imply knowledge of
| what the public thought | can't answer for tho
| pubnc."
| 1dcnco unimpared.' What did you mean by that?''
ITO answer tha. question properly IL will be ncces.
sary for me TO explain AS lar US can what caused
mo to such words in tho telegram. have already
stated IN my previous examination that saw Earrings
the reason Of my seeing Mr. Ward ana sending the iee
grams was the receipt OF letter from one OF Barings
nrm, putting question which caused me to examine
carefully into the situation Of our affairs arrived at
the conclusion as TO their situation the afternoon Of
the I'D. at once said to my only partner then pres
ent Mr. Gram, that felt We had no right 10 continue
our business; that although the letter from the part
ncr Of Barlpgs could bo answered by mail II was my
| duty once 10 communicate the facts their con
| 1dcntlal agent, Mr. Ward think called once that
| afternoon at Mr. Wards Office aud found him
absent and not to return unttl tho next day.
needed counsel and advice Amos. every friend
| had was out OF town. | went from Mr. Wards olico
| 10 mat OF my counscl Mr. W. W. Mcfarland | ex-
planned to him the situation, and told him that felt
! must close my doors at He asked me whether
there wns not some source from which couli obtain
relief ! replied, None except possibly through
Barngs, who had large interest with us, and who
might bc willing TO grant such relief, and thought
might obtain guarantee OF my father TO accomplish
this He nir. McFnrianp) replied 10 me, You have
no right to bring tins calamity upon the community
20 long as you have one possible chance OF relief
explained to INN then that our was different
from that OF merchant who ouid cease buying
|
| that with us, bills OF exchange bought,
deposits made and other liabiiitics created
withoat our action, that the aid sought Tor
would be totally imperative II the necessity for
even whispered, and could not continue or a
meat wunout running tho risk aud IN case OF failure
dong nJustcc, and that l FELT notwithstanding what
he raiu, that should close at He replied,
Granted all that you say but ns friend and your
counsel advise and cxhort you IT, take no step until
you make the cffort with Barings. In the meantime
do ms ttc as you positively without refusing to
that which would render aid incIcctivn.' saw Mr..
McFar.and frequently the I'D, 2Ith and 2Gth and
each tinc used the came argument with ana obtained
from HIM the same advice | Ward the 23d
concealed nothing IRON him, and he cablcd what
told him to Barings have since heard, the
preston on hts part that u would he doubtful II the
aid asked tor would afford the TclicL Nothwithstand
ing this with all the facts before them, the Barngs
at tho request of my brother, continued accept
drafts on Mcndsy, the Goth, until they could my
iatncr, who went TO them tho day. He
met them the morning OF the 9th, and
they declined my request, by cable, that
morning I, therefore, Immediately closed my doors.
think TINT The answers your question OF why 1t was
important that secrecy should DO observed in refer.
10 what | seeking 10 accomplish" Mr.
Duncan here stated that he had applied 10 Mr.. McFar.
land Tor permission to make known the conversation
that he had with him during that professional ntor-
view. and hnd rcccivcdL
"Did you sell en- the 2ath Of jay any drafts the
Union Bank OF Lonuong"
objected TO as ImmatcriaL Objection sustained.
when last, prior 10 July, 1873, did you prepare
| uya nj vOur nd gt n