The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-08-02
Mr.. DURANT SPEAKING OUT.
JOHN q. TAPPAN's sCHEMJNG AND DIS
HONESTY DESCRIBED.

HONESTY DESCRIBED
A Document TINT Has Created Excitement In |
BOSTON Business Circics-SncrincInu Those !
for Whom he Profc.scd Warm Friendship.
BOsTON. Aug MIR. Henry L. Durant
President Of the Boston Betting Company. and
one Of the heaviest stockholders in tho New
York Betting and Packing Company. Furnished
II statement for publication. in explanation Of
the contract between himself. J. II. Cheever, and
John q. Toppan. which was read Mt tho meeting
OF creditors The PRONUNCIATION Of this docu-
ment created even moro excitement in business
circles than did the failure ot the Betting Com.
pany and the Irregularities OF Tappan. its
Trcasurcr. Mr.. Durant begins his letter in the
following language:
Il dcnounco the proceedings Of yesterday in
convention with the meeting Of the creditors Of
the Boston Betting Company as n most shame
fu outrage to mo appeal to overy business
man in Boston to read carefully the facts and
Judge for himself / wns in New York attend
igg meeting Of the creditors Of the New
York Company. Everybody knew that | was
necessarily there. but John q. Tappan con-
trivcd to have paper read mt the Boston meet
ing In my absence when l could not defend
myself. Not content with stripping me. my
wife. and relatives Of our money. and destroy
ing the stock that Mr. Chccycr and | owned TO
thcv1ur " s2l0.oO0 to 1900 900. rs we'll ms failing
our New YORK company. he is now cndnnNOring
to cover up his crime by slnndering me-
Durant then proceeds with statement OF
facts. he met with losses aud WIS pressed for
money in 1874 while completing Wellesley Col
lego and Tnppan knew I. II August ne began
were being impaired, and that something
intsrvcws were we're had. 'q and nnaly Dnrant
was told that he could not borrow money ON tho
rant and Cheevcr to turn over the stock 10 him
and he would raise the money. NJ Dnrant
c.ntinues: He was To- advance sl5o.O0o 10 tho
| Now York Betting and Packing Company on
| 1000 shares Of the Boston Billing Conpany's
stock. which was worth ,sl73009 llo was
| three per cent He also compelled Mr.. Ch"over
and myself TO agree that the New York company
| should. IL he wanted give him our accommodate
also compelled. mo TO agree personally
that would endorse the amount Of s15QG0oo;
| and that. II he desired, at the end Of
two years we should buy hack t50.0O0 worth. Of
! this stock for the sum 81 s75.0n0. urged Mr.
refused. reminded him Of his professions "
| fricndsMlp ter me and Tor our company. He re-
piled, This Is u matter II business, not 81 friend
ship ] urged him to lend npon The stock
In tho usual way. uycn Mt hi Oh rate II interest.
hui he ,p.remporily refused aud At lat was
| compelled 10 yield 10 his terms At the end OF
| two years he notified Mr.. Cheever md myself n
buy back s50.Q0o worth Of The stock for T5.noo,
| according to the contract. We did 90. and pnid
| the money. As n result Of this Transaction. Mr..
Tappan took from us tho sum OF 1872 900"
| He further explains that the New York and
! Boston companies were ON the most intimate
| business relations; that the New York company
had loaned It's endorsement II the Boston com.
pany for over 81 100000; that Duraut had
| endorsed iis paper 10 tho amount 81 over
sjo0ooo; that the collateral nut M in
! tho Transaction under consideration was worth
nj lens, sl7j, 900; that Durant received no per
sonal benefit from It whatever; TINT tho lonn
wS nnS aGS u dwn g hn,
the company did not and could not lose any
thing that the transaction was right. equitable
Mr. Durant also says: 1t will be- noticed in
the contract TINT he agreed t. have these notes
discounted at the loves! rates possible. not to
all tho rest he paid usually o., per cont.
md onc-cighth Of cont commission. hut
never higher In all than per cent. When he
came to settle the interest account he directed
nj and "a per cent hayo the clerks ccrtiA.
cate OF these iacts. This has boon discovered
And now | have to say. in conclusion. thai
Mr.. John q; Tappan cannot escape tho ton
sequence OF his crimes by attempting to impli-
cat" his friends, and | say TINT the conduct o.
yesterday, behind my back. when WAS IN New
silerei iy nii WHO Know Mr.'' TfaIp'ron an,
know inc. rs more base cowarlly. AMI un-rate
inl, u nni more criminal, Than the story OF his
Tho statement Is fortified by letters from
~. Ht,'Ii iIs'1'rII - - M
\. W. Wortley. Tappan's confidential CLERK
Tnppnns inEraiitUde will hc better appreciate,
when IL is known that on the day he rosignr,
ana iransierrcd his properiy 70 tho company
Mr. Durant lunnod him $4,000 ot the s1.OH
which be- then had. in order that TGIpan an,
his family might continue 10 live in rcspccta
billty.
Mr.. Checyer says that there Is no foundation
Whatever for TIE accusation that be and Mr.
Duraht werc. in eject, parties consonting {,
Tapnans appropriation Il tho Boston com
pnny's money. In 1871" he SAYS. by tn
failure ~ James Bishop 4 Co.. the Now Norl
Betting and Packing Company Su ldeuly los
about S75,OuO. which had 10 be paid hy tHSinl
M maturing paper. and it was necessary ior "a
! promptly 90 borrow money, which We lid from
Iohn G.. Tappan, who personally agree ~ len,
q ~ us. taking us collateral 100000 IN Boston
Boiling Companys stock. and requiring as
condition 81 tho loan that while he held the col
lateral he should re- GIVE the dividends. loss
per centun. which at that time wore % pc
contum "A year. regularly earned. We did no
hesitate 10 max" this sacrifice To- pay our dehs
and W. repaid tho money thus borrowed. an,
d thus secured when il was due and that II tn
% who.e UnAlr. We did not borrow from the Boa
ton Betting Company. although We owned 81
per contum of the stock and John q. Iappai
owned nearly all The rest of II hut We horrowr'
from him, and he took personally the lnterr-
! for tho debt. amounting. 10 about s30.0On. unit
, II was repaid. II he used the Boston Beltiu.
CnmpanYs money II WIS "a fraud on both tn
Il Nrsff