The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-12-24
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THE MITCHELL 4 sCRUGGs MATTER


The Great Commotion Caused by CONNER
cial Agency Clrculars-A Suit to be
Brought Against X. &. Dun & Co. for
$500, 900 Damages.
On the 9TH 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 circular was issued by r, g..
Dun II Co. on the strength of this
information, stating substantially that
grave rumors were in circulation that the
firm i'm 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
ierring or dlsposing of their property; that
they were building costly homesteads; that
Mr.. Mitchell had gone North to compro-
mise with creditors, etc, aud that parties
interested should deal cautiously
with Mitchell ~ Scruggs. few
days ago the agent OF large manu-
.faCturing establishment in WATERFOWL,
New York, with whom Messrs Mitchell &
Scruggs were dealing, arrived in the city to
investigate matters; also II Syracuse agent
was on hand Previously the firm in ques
ton were made aware OF the rumorS atoat
A house in st. Louis, of which they had
been II patron, refused them credit for n
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 Messrs. Mitchell & Scruggs for II state
ment. which was furnished by Mr., Scruggs.
He said that the firm HAD been greatly in
iured by both Dun 4 Co, and the Brad
streets-particularly by the tirst-named.
lie said the information was sent out with
out investigating the court records for liti-
cation, or the county records Tor the trans
fer of property. That the rumors, except
that he and his partner were building tn EN-
selves new residences, were groundless, ana
that his firm were not asked
for statement 10y Dan ~ 20
till the 18th inst, lie SAID MI
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 lor IN
Ssection and investigation without reserve;
that the investigation showed Mitchell u
SCruggs TO be possessed of $l03VOO 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 Inc
agent OF the Watertown firm had become
satisfied of the soundncss OF the urn
and had left very strong letter 10 tnal
effect. This letter Mr.. SCruggs read which
was most hattering document Mr.,
Scruygs said that his firm had determined
TO bring suit against X, G. Dun a 60. loi
S200,0O6 damages, but Us yet had not con
cluded what course to pursue rs regards
Bradstreots. ~,
The reporter then called on Mr. liar
riSon, OF the Dun agency, ana on MT
Cook, of Bradstrccis Neither OF these
gentlemen were inclined to be very com
municatiye. Mr.. Harrison said whatever
Information he had furnished his employer
was given rs rumors. but that when, upoi
Investigation, he became convinced that thu
rumors were mainly groundlcss, he had Sc
reported, and circulars TO counteract tn'
harm uon, were sent out. lie said tina
he had discovered the night preyiousl,
something that he considered prett,
hard against Mitchell & Scruggs
but which he would not nov
make public He admitted that
he had become satisfied, and reported fron
their statement and books that the firm Q
Mitchell & Scruggs had assets above thei
liabilities to the amount of 1888 900. Thi
Is virtually all the information he woul'
give.
Mr.. Cook, Of Bradstrects, said he had n
knowledge of his firm having made damnr
ing reports against the firm In question; tina
great caution had been exercised by tn