The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1881-12-29
THE MTG EiL 6 soRUGes MATT

The Great Commotien Caused by COmnlj'r r
cial Agency Circulars-A Suit to be
Brought Against Il. G. Dun s. Co. for
100000 Damages.
On the It'll instant the local Office of r.
G.. Dun & Co.'S. Commercial Agency sent
the principal Office information touch
ing the financial condition of the heavy
hardware and agricultural implement firm
of Mitchell & Scruggs, of Dallas, 1t is
alleged a circular was issued by r. G.
Dun & Co.. on the strength Of this
information, stating substantially that
grave rumors were in circulation that the
firm in question were weak and liable to fail;
that Mr.. Mitchell had been sued in St.
Louis for $4,000; that the firm were in Sc
rious litigation here; that they were trans
ferring or disposing of theirp property; that
they wore building costly homssteads; that
Mr.. Mitchell had gone North to compro-
mise with creditors, ETC., and that parties
interested should deal cautiously
with Mitchell g. Scruggs. A few
DAYS ago the agent OF large manu-
featuring establishment in WATERFOWL,
New York, with whom Messrs. Mitchell d
Scruggs were dealing, arrived in the city to
investigate matters; also Syracuse agent
was on hand. Previously the frn1 in ques-
ton we're made aware Of the rumors atloat.
A house in St. Louis, Of which they had
been patron, refused them credit for q
bill to the amount Of Sl60. Yesterday the
business community was much interested
in the firms condition, and the
rumors in circulation were generally
discussed. A reporter ofthe HERALD called
on Nessrs. Mitchell d Seruggs fer state
ment, which was furnished by Mr.. Scruggs.
He said that the firm had been greatly in
jured by both Dun g.. Co. and the Brad
streets-particularly by the frst-named.
He said the information was sent out with
out investigating the court records for liti-
CATION, or the county records for the trans
er of property. That the runners, except
that he and his partner were building them
selves new residences, were groundless. and
that his firm were not ASKED
foT statement ,s,h itst BY Dun ao;s g 70
Mitchell accounted for every day that he
was gone when the firm was waited upon
BY the agent, and that the books and state
ment of the firm were given over tor in
spection and investigation without reserve
that the investigation showed Mitchell q
Scruggs to be possessed of $l53,00O assets
over and above all liabilities, and that no
serious litigation was pending, or were any
obligations due; that they would discount
all their obligations on presentation. The
agent Of the Watertown firm had become
satisfied of the soundness of the firm
and had left q. very strong letter to that
effect This letter Mr.. Scruggs read, which
was a most fattering document. Mr.
Scruggs said that his firm had determined
to bring suit against X. G. Dun d. Co. for
5000, 900 damages, but as yet had not con-
III x.tl. n nm ms
Bradstreets
The reporter then called on Mr.. Har-
rison, Of the Dun agency, and on MT.
Cock, of Bradstneets. Neither OF these
gentlemen were inclined to be very COM
Mr.. Harrison said whatever
he had furnished his ctppicyegs
was given us rumors. but that when, upon
Ire became convinced that the
rumors were mainly groundless, he had so
reported, and circulars TO counteract the
harm zone were sent out. He said that
be had discovered the night previously
that he considered pretty
hard against Mitchell d Scruggs, /
,ut which be would not now
make public. He admitted that
he had become satisfied, and reported from
heir statement and books that the firm OF
Mitchell L Scruggs had assets above their |
liabilities to the amount of $153 600. This 1
$ virtually all the Information he would
1--WE.
Mr.. Cook, of Bradstreets, said he had no
of his firm having made damag-j
ng reports against the firm in question; that
'rest caution had been exercised by the
,eople he represented, and that they went
outside Of Dallas for most OF their informa-
10 manufacturers with
rhor Mitchell & scruggs were dealing. He
ras not prepared to express an opinion re-
arding the financial condition OF the firm;
either had he any knowledge Of any in
ention on their part 10 bring suit against
'radsfreets.
Before the day closed the interest in the
natter had subsidized considerably in the
ublic mind and the general sentiment was
hst the affairs Of hessrs. Mitchell a
cruggs were in healthy condition.