New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-25
FAILURES AND SETTLEMENTS
ACTION OF DUMMIES CREDITORS.
WHY SOME OF THE BANKS REFUSED TO Acchfi inh
PROPOSED ARRANGEMENT.

WHY SOME OF THE BANKS REFUSED TO ACCEPT TIE
PROPOSED ARRANGEMENT.
Shortly after the assignment OF T.. y. Duh-
Ming ir the broker. several or his iriehuS e'-
deayored settlement with his creditors, anu
especay with the with whicS he had done bus-
ness 1t was the opinion OF many creditors that d
uromp settlement could be obtained. and that the Dest
thing would be to have the assignment made by MI
Dunning cancelled. Said friend OF Mr. Dunmhs' yes
ter,lay, in conversation on the subject;
paper, embodyng plan OF settlement, was Pre- Pre-
ppot ulease President Coe OF the American Exchange
He made some important alterations in his own hand-
S rn mhs dfw to G co s he entire
faction with 1t and placed his own name; a.
president of the bank the first signature 10 IT,
The paper provided that a committee OF lou II
composed OF Cyrus W. Field. George $ Coe George
stery and George Cabot Ward with the consent OF te
merchants who interested, shpu'd make arrange
ments for Mr. Dunnng 10 close up his business no TINS
and should the members OF the committee dis
Submitted to q des Court Of arbitration Of the
Chamber Of Commerce.. This agreement, was
would obvate the necessity Of tedious and expensive
legal proceedings. Many SIGNATURES OF creGlors W.T.
Nr. Dnnnng for the paper lie drew line through NE
signature and those Of the presidents OF me Mer
s snnR Of "e Gom@srce '' The paper was then
returned without any explanation from hr. coe h
withdrawal from the agreement, but no answer mas le
received. Mr.. Coe member OF the consulting
all the creditors placed implicit confidence The agree
perfectly fair 1t was hard only on the law,
yers as, II carried out, II would have deprived them Oh
much lucrative business The creditors would have farcd
well. and ultimately would have reganed nearly the ui
amount Of their claims. "A it Is now. interminaDie a"
suits will be the result, and the creditors promise 10 Bet
very little.
Inquiry yesterday among several Of the persons inter
The settlement of Mr.. Dunnings affairs, obtained
tie following version Of the matter When Mr. Duuning
failed the ntmstion that tho creditors had OF 1t
waa the announcement that he had made an assignment
and without reference to them IL was concluded 10
be- best reflection to rensae him, If possible, IN the
care Of his own affairs several attempts were made
Finally the matter far arranged that paper was
prepared, by which Mr.. Dunnng to be reinsateG,
and TO be advised by committee Of four persons In re
card 10 doubtful questions ThS paper was prepared by
Cyrus ". Field IN conference WIN several DIiKs my
all desired 10 carry out III perfect good alth WIN Tue
understanding that II 10 be signed by all the cred
itors The presidents Of the banks Interested signed H.
executing one WIN very lttle objection Ihai one n
tatcd about adding Ls signature The counsel of tue first
sgucr was requested to 20 10 the counsel 81 TINS ohA
president, and to inquire why he refused lis sSnauIe,
III the tXprcssu The wish al the other BANKS
that he unless the objection was serious one
In that the counsel visiting him was TO return ana
report. lie did return bringing win him the cousi
%. the bank president: who stated a. reason why ms
client declined to sign that the counsel Of Mr. Field had
said him that ne retained by the makers OF the
paper negotiated by Mr.. Dunung-tn The extent OF
nearly oOOO0-tO dLpnic the iiEht OF me BANKS who
ming IT, and that the agreement for rcntang
Ar. Dunnng IN possession would assist that dispute.
conferred together nnd undr advice " counsel decided
10 withdraw from the Arrangement by elaslng ticlr
names from the agreement Mr. DunDng Was therefore
cent for bIiH with in the paper that had
been sigIed lie appeared IN company with r. l. bli
hi- Ihcrrupon In their presence ana amer l
statement az the reasons for 20 doing. The Amcc an "a
change. Bank 81 Commerce, Chemical Bank. ana toe
Merchants Bankan officer OF each OF these banks being
pr,rnt-crascd their names from the agree neut ana IT.
turned il 10 Mr. Dunnng. All this done before the
icinulrtcd by the palrr which had been signed, had
been madc and il, Of course. arrested that proceeding