The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-02
THE HAPPAN TRANSACTIONS.
More Details as to the Boston
Betting Company.
PRESIDENT DURANT'S STORY
How Tappan Made a Shylock
Bargain.
(sx rxIxosApH TO THE Hr.ALp.l

Mr. Henry F. Durant arrived IN town from New
York to-day and found that while he had been goas
the treasurer OF the Boston Betting Company, John
9. Tappan, had been giving away some docum ents,
tho publication OF which reflected rather severely on
the reputation OF Mr. Durant Accordingly he went
TO work on the books Of the company, and after some
careful labor, wrote out q statement denying the
charge OF dishonesty, explaining his action IN the
matter of tho bargain with Tappan and Cheover and
denouncng the former as . tn,ei and swndler, the
publication Of which morning will create
profound sensation 10 business and financial circies.
DuRAxT's STATEMENT.
After brief explanatory statement Mr.. Durant
says
"On Wednesday was In Now York attending y
meeting Of the creditors OF the New York company
Everybody knew that l necessarily there, but
John g. Iappan sontrived to have paper read at the
Boston meeting in my absence. when could not do
fend myself Not content with stripping me- my
wife and relatives OF our money. and destroy
Ing the stock that Mr.. Chsever ana owned TO the
value of S250,0O0 to $500 600. well causing the
failure OF our Now York company, he IL now
sndeavoring to cover mp his crimes by slandsring
me- was certain that this paper was John G. Tap
pans WORK. and SO hurried home from Now ork last
night, and my investigatons In Boston this morning
confirm my opinion"
He then says that Tappau knew OF certain losses
his in 1874 and that he had several interviews with
him about tie losn Of money, aud then Mr.. Durant
goes on TO say:-"My first interview with him
upon this subject was in August or Septem-
Der, 1874. He began by telling me that
the New YORK company had too many of their notes
In tho market, and that ther credit and the credit
Of the Boston Betting Company would 90 impaired by
It. do not give all the details OF the interview, but
no succeeded in exciting fears and anxsties and
appointed time when no should meet again. At
the second interview he was even more emphatic,
and told me that he had bought large amount of
these NOTES himself at very high rates OF
interest; that something must be done mme
that large should be raised and these not es
Withdrawn from the market Ho urged my borrow.
ng money on the stock OF nc Boston Belne Com.
OF the value Of ut least $780, 0OO He proessed great
Kindness and dcsre TO do thing he could nep
tho New York company, and then again advised that
We should borrow money tho stock and offered to
make inquiries and II he could effect q loan that
y was impossible 10 borrow money the Stock and
that We m ust sell It, suggested plan OF selling
MN aooo shares OF tho value Of Sl7000o but the
oetais Oh the plan were not at that meeting arranged
A sHYLoCK BARGAIN.
At the next Interview when he appointed ne
brought forward the scheme which carried oct in
MS agreement, which was as follows aud It was
ShylocS bargaln:-He was to advance $l5OOO0 to the
New York Betting and Packing Company 1000
which were worth $4,000; be was to
nave nave Tho usual yearly dividend Of twenty
ana myself agree tho Sew York conauv
should II he wanted, give him our accom- IN odat,o on
paper 10 tho amount Of 100000, and also compelled
me TO agree personally that would inGorse tho
amount u $780, 900. and that he DESIRED tho end
o. TWO yeart we should buy back $50, 600 worth Of
!nis stock for the sum OF $4,000 urged Mr. Tappan
te give more favorable Ierms, but no refused; I
reminded him Of his professions Of friendship
Tor me and Tor oar company, He replied, .rhis is q
matter OF business not OF frsnaship' urgea him TO
lend upon tho stock III the usual way, at Ugh
rate OF INTEREST," bat he peremp,ory refused and a.
10 q term A. tha nj
2. TWO years NJ notified Mr.. Cheever and myself 10
Duy back $4,000 worth OF the stock for $40. 1000,
according 70 the contract. We did and paid tho
money As a Result OF this transaction Mr. TaPpan
TOOK from US the sum Of $4,000 bonus; his extortion
TAPpAN's DISCLOSURE
I'm 1877 be procured Trend 10 seDd for Mr. Cheever
cilea, but when Mr.. Cbsever arrived Mr. Tappun,
ssda saying word about the difficulty, pro-
ss Boston 10 ' n. Mr. and m That
and wanted assistance, and that II be would lend
them our notes 10 the amount OF 500 900 II would
MT Cheevcr nrs. objected to TINS but yielded at
my SUGGESTION ara when Mr.. rappan referred to his
you thought We we're in diaicaisy and
needed assistance you took advantage OF
S Ss and ar Ss%pssd to pay you
Boston Betting Company needs assistance we Will
shevriully lend you $780, 900 and charge ysu
Bsllng Company that amour. we loaned
Them $4,000 In addition also Endorsed aud guar
aud this atrocious SANDER is Mr. Tappan's gratitude
or our assistance"
WHAT THE TWO COMPANIES DID.
Gr. Durnnt then goes into elaborate argument
70 prove INIT Was right and legal " the money
~ above described He says:-''Mr Cheevcr anu my
sell SUBSTANTIALLY owned The New YORK company. Mr.
Chceve with my sell ana Jonn G. Tappan and josiah
?. iappan, owned all but very small amount OF the
present time the transactions oetwt these
panles were numerous aud large. The New York CON-
pany ioaned their credit TO the Boston company
Iasn
tho New York company. Whenever it was wanted.
The public will have some ides OF these amounts
when inform them that during this time the New
YORK company loaned tho Boston company their
notes and Endorsements 10 The amount OF 472 49,
that personally Indorssd usYsOuaiy .sa
Lotes OF the Boston company Tor their use 10 thc
smount OF s539. 500 90 and thcre, repeat, that
mere justice anu equity Tor the Boston Belting Com
pany TO assist The New York company 10 tho amount
Of $3.50 oo0 as they did IN septsmber 1874 but there
10 another tact whicn l have learned within lew
days winch completely settles tho question oil tho
legal right OF the Boston Betting Company to make
that Endorsement That loan Of $50 600 was assumed
by tho Boston Betting Company ON Soptom-
bes Is. 1874 They charged the amount OF
The loan on their books; thoy credited tho notes oil
receivable, and charged anu received interest upon
the ,ransacton and thus the Boston Betting Company
10 indorse their own n.tss became settled beyond
sos question In other words the question for Boston
~ indofss It's own bus receivable y.
- TArPAs's INTEREST yKAuDs
"But aside from tho legal question have two or
ihrec words more for Mr Tappan Tue $50, 900 which
were taken out OF US were appropriated By him
10 his own use aiiege distinctly that no has no
rgnt ~ noiu mat amount IL belonging to the Boston
Betting Company. Hut this Is not all MOI content
with taking TINS great sum from pay mo ut for his
friendly assistance, no dc frauded In the interest
accounts II will DO not iced In tho Contract that he
agreed 10 have these notes dscou ned at the lowest
Fate possible not to exceed seven ana hall per cent
Now let us look At the facts He pad Tor mo lot seven
per cent Tor ali the rest he paid usually i've aud half
per cent and onc-eighth cent commission, but never
higher In all than SIX per cent When he came
to settle the Interest account no directed ms
confidential clerk 20 mako up the interest at scven
aud seven and ons-half per cent have the clerks
certincate OF these iacts This has been discovered
wuhin a few days The amount Of which We wsro
dcfraudcd ~ 80, 500 IL. Tho Boston Betting Company
anu their creditors have boon great gamers from Mr.
Chesver ana myself We have been ana are the
Greatest losers. Their whole prosperity since
1901 has been duo TO tho New YORK
had the New York company's credit TO
The amount OF over $l,500,0oO They have had my