The New York herald., 1878-01-12
BUSINESS DISTRESS.
Failures Following on That Of Dun
ming, the Note Broker.
A DRUG FIRM EMBARRASSED.
Troubles Of John f. Henry. Curan & Co.
and Others.

cal and local banking circles caused by the failure Of
L. j. Dunnng, Jr., had hardly time to do away when
new surprise followed in The failure yesterday OF
Messrs John +. Henry, Curran & Co., wholesale drug
gsis. No. College place. Early In the fore
noon rumors became rife in Wall stroct
TO tho effect that In consequence of tho
suspension Of Mr. Dunning tho house TO
which Mr.. Henry belongs had suspended payments
By two o'clock the unsubstantial reports OF tho
middle OF the day had assumed definite form, and 1t
was positively known thht tho great drug nrm was
Involved In order to ascertain tho real Of facts
q visit paid to the Offices Of the concern and Mr.
Henry L. Bowen, Of the Arm, made the following
succinct statement:-"W temporarily embarrassed
IN consequence oftho failure OF Mr. E. J. Dunning Jr,
broker OF No. 63 Wall street. Ho was our noto
broker, In whose hands there Is a largo amount OF
our paper which no has not reported as having
been sold. Unt Il can be asccrtained how he stands
with the banks cannot state how We stand. If tho
banks do not press him very hard we can. wo think,
IN time pay 100 cents tho dollar We have
every confidence in Mr. Dunning's integrity. lie
has done business for firm tor long time,
and his failure was great surprise to ua During the
afternoon number of friends have called to extend
to us their sympathy and aid, and il CONCESSIONS
made all round we will be able to pull through We
cannot tell how much OF our paper remains unsold In
the hands Of Mr.. Dunning. We arc merely suspended
mo investigation OF Mr. Dunnlng rcntionS
to the banks We are unpreparod at present to give
any figures 10 the assets or liabilities o. our
house"
In the afternoon Mr.. Henry had conference with
Mr.. Dunning In his Office In Wall street, and tho result
OF 1t was such as to produce very depressing effect
upon the former gentleman
couple Of prominent dealers In the drug business
who were consulted expressed themselves as being
very much surprised at the failure OF Mr.. Henry's
which they had considered very strong,
doing good business, and in 1ne commercial condi-
ton One Of tho parties conversed with believed that
tho house would bo allowed 10 resume business afcr
awhile by the creditors Some months ago a large
wholesale regular drug trade mad been added to the
fancy medicine department, and he would ike to SEQ
thcm como out all right in fow days Another gcn-
tlcman expressed his belief that a great deal would
depend upon such attitude as Mr.. Brced and other
principal creditors might assume
BUSINESS ANTECEDKNTs OF
In 1865 the hrm OF John +. Henry Curran Il Co.
established. The concern before that time
known as tho house OF Dcmas Barnos Il Co. during
the latter part OF his medical career Mr. Barnes
had received Mr.. Henry as partner and
upon tho retirement OF tho former The present
partnership and hrm name were then adopted Sub
scqnenty Dir. Henry l.. Bowen, son OF Mr. Henry C.
Bowen, came Ia as partner upon the condition, it Is
SAID, OF paying $50 600 OF stock in the Brooklyn
Unton newspaper The members Of the nrm
John i. Henry, Theodore Carran, Charles A.
Giis ana henry l.. Bowen.
In 1873 Mr. John \. Henry was tho republican can
ior Senator OF the Third district mud was
icated by Mr. joan C. Jacobs In last year's canpaign
Mr. Henry the republican ticket for Mayor OF
Brooklyn. On the iatfcr OCCASION whcn ho was again
defeated Mr. Henry Is credited with having greatly
disappointed and dssnsted tho strikers by ,xpend-
ing only $500 to push his own rretcnsions for once.
Mr. Curran was At ogc time engaged in business
Cincinnati with Mr.. Breed, who conceded be
creditor oil tho firm. Mr.. Charles A Gillts ia
putcd 10 bo quite wealthy, ana has invested an
amount that said TO DO at least $500 O00 capt.
tai OF tho house is stated at $500 COO Mr.. Henry is
manufacturing associations Another version OF tito
story has IL that Mr. Charles A. Gills was special
partner of Mr. Henry; thai he put sl25. 900 into the
firm. purchased the jobbiBg interests OF Demas
Barnes ana established the present concern.
1t is claimed by Mr. Benrys firm that Mr Dun
ming promised delivcr them $4,000 yesterday, but
that he ised TO do SO, and Mr.. Henry obliged
TO take up several checks, one OF them FOR 5,OoO
which were not expected 10 DO presented at the
time.
EXCITEMENT iy THE WHOLESALE DRUG TRADE.
1--WE knew all about the failure on Thursday said
Mr.. Purdy, thc member OF leading drug house
william street 81 do not desire 10 add TO whatever
statements or runors you nave received IN regard to
the iauro, but II Is no suprIsc whatever TO u.s. Ia
iac when, last month"; owing to what thought TO be
some Misunderstanding, there WINS much anxicty
the part OF Mr Henry TO collect some bills due him
formed my own opinion IN regard TO the standing
of tho mousse"
Mr.. u. Z. Robbins, OF tho firm OF McKesson & Rob-
bins. said "lt s an important failure Tor our IInc OF
business. because tho house OF John +. Henry
extensively connected witn tho trade IN and outside
OF The city. The failure Will shake the stand
ing OF every drug house whose credit Is
not thoroughly established. Still, this fail
urc, Independent OF these conne nections,
should affect trade generally, as II boen
matter oil established comment for two three years
past that tho concern a mystery to outsiders.
The firm, however, had very little to with Tie drug
nostrums."
.'Do you Understand, sir. that the failure Of Mr.
Dunning IN Wall street preclptatcd the fall oi AIR.
Hcnryf" asked the reporter.
"lf Mr. Dunpng had come to any Wholesale drug
house during Dccem Der or even November would
have told him To leave Mi. Henry's paper alone.
There ouiy opinion amoug IN ard to the
standing Of tbat house"
Another gentleman who was preseut added :--'It
was not Mr.. Danung's failure that caused Henry's
suspension Henry nad previously said that " they
could not discount his paper he would be embarrassed
Now, Mr. Dunning aud other brokers had something
like sls5,CO0 10 s2UO,O00 OF his notes. aud when Tho
general dlstrust now prevailing prevented tho Wall
street brokers from floating this paper Mr. Henry had
10 suspend. That IS about the sum and substance of
the whole story"
Demas Barnes, lato proprietor OF Tho Brooklyn
Argus, and one OF the pioneer members OF the drug
trauc, said TO oil his old business hen
put this man Henry In charge o. my business tho
profits OF the year previous hnd been 100000 When
the capital had 10 be DEDUCTED to the concern
come Oh! even. In tact when made up my mind 20
new management aDd--l soii out"
DuaNING's STATEMENT.
Mr.. Dunning convorscd freely at his hotel upon tho
subject oil bis own failure aud that OF Mcssrs. John
+. henry, Currgn n Co. He SAID II true that
large amounts OF their paper had passed INTO hrs
hands, but the notes his own property as he
had paid ios them. He could not state the exact
nominal sum which he possessed before making his
ialo assignment, but hc felt sure IT must be some
where between $80, 900 and $40 100 lie believed that
when the state oi the suspended drug lrin became
known would demonstrate us ability pull through
Some large establishments IN tho interior, partcu-
larry ono at Cincinnati arc Interested ~ the pros
pcrtv Of the wholesale house Of John II. Henry Cur
ran Co.. and therefore the suspension oil that house
might only be temporary, as the crydtors would pos
sibly allow the concern TO 20 with the business
The banks have not yet come to any determination
the affairs OF Dunnne. Mr. Dunnng agd Mr.. Bell,
the assignee, were Ia consultation with bank officers
nearly all day and further explanation was given
OF tho state OF affairs than that no settlement has
been made yet
Mr. Dunning made tho statement last night that
after strengthening out several intricate matters
during The day he had reached what his creditors
must look upon as very satisfactory result. he
claims that alter settling all demands against Dip
surplus fund OF 500, 00U will remain to his creui,.
This Is on the basis OF paying ono hundred cents to
the dollar.
CUTTERs COTTON DEALING5-THosE WHOM HE