The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-10
ANOTHER SUSPENSION.

EDWIN J. DUNNINo, JR.'s FINANCIAL Diff
cULTIEs-HIs OWN ESTIMATE OF HIS LA
BIITIEs.
The failure OF Mr.. Bdwin j. Dunning. Jr. Wall
street note broker, became known the street late
yesterday afternoon. Subsequent inquiries proved
tho rumor to be correct; tho Clearing House had
thrown Mr.. Dunn.ng's checks out the morning,
and an assignment made later in the day TO Mr..
E. Y. Bell, or Bell Brothers, lawyers. Wall street.
The liabilities are said 10 be million dollars Of
which. 1t Is said, 500, 900 are secured.
On Saturday last Mr. Dunning surprised old
friend OF his by entering his office aud announcing
the financial disaster that had overtaken him. TOT
reporter OF the HERALD this friend said Mr. Dun
ming had Tor the last eleven years done extensive
business in dscountug, last year two,
in purchasing merchants notes Of exchange. In this
he had been largely assisted by downtown banks and
has had frequently US much as $4,000, COO worth OF
this description or paper hypohecated Probably the
amount Of business OF this character had aroused
anxiety the part of the directorate of of
tho banks that had thus him, and their
fears had spread TO several other banking Institutions
who hold his ''paper" and this mad eliminated
on Monday in a POSITIVE determination Of
OF these banks to extend HIM
further credit. The interval between Monaay aud
Wednesday had been employed by Mr. Dunning ana
his friends. the gentleman said ondcavor 10 IN
duce other OF the banks 10 advance him enough
enable him to tide over his present emer rcncy;
but this proved unavaing, and yesterday morning
und suspension was inevitable.
LIKELY TO BE REALIZED.
His principal creditors. II Is SAID sevon down.
town banks, OF which Is owing about Sl65 600
All hold security In the shape OF merchants paper,
and II these met there viii DO little loss
informal meeting OF the representatives OF
these banks yesterday 1t was the unanimous
Mr. DunDng would be able to pay 100
oents the dollar. Those who are more
intimately acquainted with Nj Dunnng's affairs are
Of opinion tnat this Is much too sanguine an ex
peclation. While there Is no reason to believe that
there the slightest foundation, In fact Tor the rnmor
current the street yesterday that any portion OF
this paper was forged, II Is known that Mr. Dnnning
has heen large purchaser OF merchants paper and
II Is feared that very much OIL tins VIII DO found TO be
virtually worthless 1t is also conceded that the
of the banks only precptated suspension that
must have come sooner or later.
BANKS AFFECTED.
All the banks affected by this failure arc down.
town banks. 1t was not deemed prudent to givc the
names OF these institutions There no reason for
supposng that any OF them, with possibly singe
exception, will suffer sufficiently to Interfere with
their regular business. Tho majority Of them
concerns whose credit would stand severor
attacks than that caused by Mr.. Dunning's fail
ure. To-day the effect with DO felt considerably
in commercial circles when Mr.. DunniDgs affairs are
more thoroughly investigated by the assignee and an
oppos,.ed a. Mr. Dunninss Office and at tho bankers
Thirty thousand dollars worth OF securities OF this
character were sent into Mr. Dunnlngs office yestcr-
day but they returned to their owners 1t ts In
this connection that the failure may turn out very dis
aslrous. and to.days developments will be awaited
MR. DUxxISG's STATEMENT.
Late last night Mr. Dunning received representa-
tive OF tho HERALD In his rooms at the Clarendon
Hotel. In answer to question concerning his failure
Mr. Dunning sad:lt is true that this afternoon, at
hafpast O'Clock, the doors OF my office in No. SO
Wall street were closed and business suspended
In consequence OF unexpected embarrassmen,s.
Tho liabilities which have incurred will bn between
$780, 900 ana 5000 600; not more. made yesterday
afternoon an assignment, without reserve, Of my
Mr. E. Y. Bell OF No 30 Wall street. To- the
benefit Of all my creditors. The suspension was
stoned by "a squeeze III the market, resulting from
my inability to realize upon commercial paper which
I hold. was unable on this account TO meet
Immediate demands, and consequently had TO
make in assignment in order 10 straghten up mat
lors in The possible way. NY assets are nearly
all made up OF commercial paper, upon which advan
ces were made TO the merchants and business mon
whose names 1t bears Ifthese parties respond
the call when their presented the creditors
will receive one hundred cents to the dolar.'
Mr.. Dunning was reminded Of rumor which had
gained circulation during tho afternoon, TO the
effect that ne was to DO found at his Office, and
that fears tertoinei respecting his ability to
meet his creditors. Ho frankly sad:-"l was not at
my Office in the afternoon because was closet cd
with my lawyer, whose advice naturally sought I'M
der such unfavorable circumstances snail be there
what aid can to Mr. Ben, my assignee"
The rumor OF his holding securities that were
suspected TO be forgerics was mentioned. He an
swered:- .
"rnere can be no question OF forgery at all con-
nccted with this affair. purchased the commercial
paper in which dealt from the makers themselves;
50 that the suppostion OF any forgery is unouudod
The paper which bought In the market was un-
doubiedly genuine and VIII realize In nearly all cases
the face value OF it,"
With regard to the individuals or corporations who
hold credits against him Mr. Cumming stated that he
was not prepared say just who they the
amounts which he owes them separately. IL Is un-
derstood that his liabilities are pretty well disrib-
utcd among "a considerable number oil Wall street
banks and FIRMS so that mono OF his cred
itors will DO likely to suffer seriously through
his suspension. He has been business over thir-
years. and appears to have enjoyed very general
confidence among those with whom ho was in tho
hubt OF dealing Possibly this afternoon to-mor-
row staten may be had, showing who tho credit.
ors arc and the amounts due them severaliy.