Duncan, Sherman & Company
| Company type | Private |
|---|---|
| Industry | Banking |
| Founded | 1852 |
| Founder | Alexander Duncan, Watts Sherman, William Butler Duncan Sr. |
| Defunct | 1875 |
| Headquarters | New York City , United States |
| Products | Banking, investment in railroad shares |
Duncan, Sherman & Company was a banking institution based in New York City, established in 1852 by Scottish immigrant Alexander Duncan, Watts Sherman—who had previously served as cashier and general manager at Albany City Bank—and William Butler Duncan Sr., Alexander Duncan's son. The firm acquired property at the intersection of 11 Pine Street and Nassau Street, commissioning architect Alexander Saeltzer to design its premises. In 1866, a fire damaged some of the company's records but resulted in minimal overall destruction.
Following the dissolution of the initial partnership in 1862, Alexander Duncan exited the firm while maintaining capital that was allocated to his sons, W. Butler and David Duncan. After Watts Sherman's passing in 1865, partners Francis H. Green and Watts Sherman's son, William Watts Sherman—who had medical training—joined the company. Additionally, Charles H. Dabney held the position of partner and accountant.
The company made significant investments in Mobile and Ohio Railroad shares and served as the American agents for George Peabody and Company, which became J.S. Morgan & Co. after George Peabody retired in 1864. Beginning in 1857, J.P. Morgan, son of Junius S. Morgan, worked as a cashier apprentice at the firm before departing in 1860 to found his own business and take over agency responsibilities for his father's firm.
In June 1875, former teller William F. Leslie and an accomplice named Ella Shaw were accused of embezzling $25,000 from the company.
1875 failure
On July 27, 1875, Duncan, Sherman & Company declared bankruptcy with debts surpassing $5 million. The firm was placed under the administration of ex-Judge William D. Shipman. This event stunned New York’s commercial sector, given that the company was one of the oldest and most reputable financial institutions nationwide. In 1878, Shipman conducted an auction of the firm's holdings in the Mobile and Ohio Railroad and continued submitting financial reports for several subsequent years.
The collapse was partially linked to substantial cotton investments intended for English markets, which coincided with a market crash that severely impacted English cotton mills. Although initial accusations targeted the Union Bank of London, that bank had not failed but declined to honor drafts issued by Duncan, Sherman & Company.
In 1878, former partners including Duncan, Francis H. Grain, and William Watts Sherman purchased 758 shares in the Franco-Texan Land Company via land-grant bonds associated with the Texas and Pacific Railway, indicating continued business activities despite the firm's insolvency.