New-York tribune., 1874-08-27
FAILURE OF JONAS soNNEBoRN & co.

A SUCCESSION OF LOSSES BEGINNING YEAR AGO
THE CATAsTRoPHE-THE LOSERS MAINLY FOREIGN
HOUSES.
The event which startled Wall-st. yesterday
was the suspe Of the firm Of Jonas sonneborn Co..
OF No. l26 Pearl-st. Two years Mr. Sonueborn re-
tired from the clothing trade, in which he had been
dong large and very prosperous business or 20 years
AT this time his wealth estimated as high as
NOOoOcO He has invested heavily for many years in
real estate. More than q year and a half aro, Mr..
sonneborn formed partnership aud began business
at No. I26 Pearlst. The firm was styled Jonas Some
born Co., and engaged In exporting large
Quantities of petroleum, wheat, provisions, ETC.
The business. which opened on very large scae
rapidly increased Mr.. S0nneborn had long been known
a shrewd business and his credit while in the
clothing trade had been Of the BEST The new frm see
ing their business rapidly increase became more ven
turesome and took large risks in many directions. A
year their interests had been widely extended and
they were doing with bankers in England, Ger
many France Italy Russia and even Sweden and Nor
way. They were now recognized among the largest
petroleum exporters this country At the time Of the
panic, in September, 1873, the Ontario Carbon vi Co-
pany of Canada failed and Jonas Sonneborn Co. were
losers to the extent Of $500 oo0 Mr.. Sonneborn had
personally been largely interested In this com
pany, and seeing its embarrassment had advanced
large sums OF money from the firm having Its
headquarters here. Carbon oil had for months been
tending steadily downward and the company at length
found themselves unable TO stand. When the crash
came the money invested and advanced by the nrm
here lost and Jonas SonneborD Co. were greatly
embarrassed. But with a large capital and excellent
there not much 10 fear. Other losses, now
ever quickly followed The firm were holding large
quantities OF petroleum, while its value shrinking
every day The OF grain and also OF pro-
visions. Their losses we're rapidly aceumulatng and
there was little promise OF better times Still they kept
on looking for better fortune, and losing every day
SO had been their shipments that fleet OF
many vessels constantly doing service for them
At this these vessels chartered at high rates.
while great risks were involved. Meantime freight
rates began to fall and they failed to realize
their expectations. Some OF their vessels were
behind time and shippers dissatisfied. In the
midst Of all these caamities they were trying to carry
tho enormous business through but that disaster
was daily approaching The amounts which have thus
been swallowed up by the universal shrnkage OF values
by the msiortuDe Of their vessels and otherwise Can
not yet be ascertained. 1t may reach sSoo0OO
The failure or suspension of the firm had not been
wholly une x pected IN Wast. Confidence in the firm
had been somewhat weakened, and distrust had been
openly expressed. The embarrassment in which they
were PLACED was known be serious, but was hardly
supposed fatal 1t is yet too early TO know the
exact condition of the companys affairs. The firm are
ignorant their liabilities and assets but are confident
that suspension is only temporary From the vague
knowledge which already possessed by the firm in re-
lation Affairs however. il is certain that the
losses will exceed half million dollars, aud may reach
tsooO0 The creditors of the company are nearly all
foreign bankers The principal losers are to De iouao
in the large European cities-London Pdrls Hamburg
Bremen, and Antwerp. The American creditors are
few and their losses Will be extensive. Several days
will elapse before any accurate statement be had,
for the r must await the arrival Of foreign mails be-
fore they can ascertain their real condition. The prnc
pal branch OF the house is in Hamburg. The firm ex-
press the belief that they will be able TO resume business
within the next few weeks