New-York tribune., 1878-01-04
THE TANGLE BONNER LEFT.

LENDERS AND BORROWERS IN A SNARL.
PULLING QUESTIONS AS TO RECOVERING RE-
PLEDGED sECURITIEs-ACTION TAKEN BY vARI-
Gus BANKS AND FIRMs-MANAGE,IENT OF THE
BANKERS AND BROKERS' ASSOCIATION
Questions relative to the recovery of the Sc
! curities repledged by John Bonner are
still disturbing those who had transactions
with him, and there is much confusion
of opinion about the whole subject. In the pro-
ceedngs concerning the receivershipof the Bankers
and Brokers Association, new charges in regard to
the transfer of stock in order to escape liability are
made.
COMPLICATIONS AFTER THE FAILURE.
There has not been failure III many months
In this city which hos occupied the attention Of brokers
SO much rs that OF John Bonner Co. The complications
which follow 1t greatly agtate wallst Difficulties be.
gan to arise Immediately after the failure was announced
ana these dculticssee to increase continually efforts
are made to solve those already discovered. Numerous
meetings have been held by persons the Sc
cures repedged by Bonner, and, in cases. appa-
rent progress has been made towards settlement but
In nearly 'every instance nothing definite has been
agreed to- except when the holders OF the securities
disposed OF them at The market price. In very many
cases the real owner OF lot Of securities pledged to
Bonner for loan finds his certificates widely dis
trbutcd among the banks and firms with which
plcatiOns similar to the followng A gave Bonner se-
curtes worth $4,000 for a loan OF $4,000; b hy-
pothecated colaterals worth $4,000 for loan OF $i0
600. finds portion OF his collaerals repledged
their full value, and decides touch the another
portion has been added to those OF A, with which
Bonner obtained loan of a trust company
on which there is margin Of 10 per cent This margin
the assignee claims The the securities also
claim IT, The trust company wishes to avoid litigation,
and hestates TO what ought to do under the ccun-
stance Meanwhile, as was only the broker for tho
real owner Of the coaterals pledged his customer is
camorous for a settlement. II the trust company
sens TO surrender the securities payment OF its loan
TO Bonner what basis shall A and decide on tho
proportion due from eachi
This Is illustration Of Of the questions that
puzzng walst operators at present Tie assignee
laterals as security for loans made to John Bonner
Co @ on nc SUCH Seee noa men these ap tNr fny
longed to the assets OF the firm. Immediately
after the receipt OF this notice. by advice OF counsel,
some OF the holders of such securities disposed OF them
al the market price Among them were William Beden
the rule at Stock Exchange fifty shares Chicago,
Rock Island and Pacific stock ffty Chicago and North
Union Pacific stock and 400 Western Union stock.
The president of the Fourth National Bank stated that
10 Bonner would be redeemed by the original holders.
In the bank required proof OF ownership and
OF the loan WITH interest also, that guar
should be gwen that any valid claims against the
bank for margins should be paid by the person taking
the securities. The securities for the third loan made by
| the bank being sold out.
The president of the Central Trust Company stated
that he had not received application for the securities
obtained OF Bonner He claimed that he had night to
dispose Of thsn EN- az a. any NM Time D out oi courtesy 10 Tue
At the Office OF the Farmers, Loan and Trust Company
the president SAID that all coateras OF Bonner held
by the company covered the unpaid loans made 10 him.
| The company had not taken note in any case. and
the securities deposited from time TO time as coli
ateras for any due 1t. Even II the company had
taken note the president thought had no right 10 sell
the securities without giving notice 10 the owners The
owners had not. knowledge agreed 20 plan TO
redeem securities which they could have upon pay
lhe schedule furnished Wednesday by the assignee
stated thOt the Phenix Bank loaned Bonner $4,000
November on securities, the present value OF which is
only about S3l 100 Mr. B0nners cashier said yesterday
thai this was mistake, as SleoOV Was subsequently
| paId the bank on account
Al irenor w. Parks Office It stated that all Of
the Panama stock pledged py Bonner belonged 70 Ar
Park. II would require three or four day more TO know
the amount OF is loss, IN the settlement OF when
he should redeem only such securities as were not
! plrdged for their IGil value
In the evidence that Was taken at the ionbs Wednes
day afternoon, Wien Mr.. Oley, BoDners manager ap-
| OF arrest Of Bonner, II is stated that the name
mentioned SewelI wass on the street and
az his office yesterday ana 1t is not known that there is
| re t. The special committee appointed by the Govern
ing Committee the stock Exchange TO investigate the
ies of Meter Il Co. and John Bonner Co.., has not
The question Of continuing Robert l. Cutting jr as
receiver of the Bankers and Brokers Association has
bceu adj Uurned to Monday The alhdaV is on when sr
Cutting appointed were not filed III fact nntil yes
erluy. The complaint is tne ordinary complaint anu
supported by an aiiayit by william Peek smith, that
the association has become nsOiyent through the cupa-
bic nauag its president, Mr.. Bonner VINO mas
appropriated the greater part OF It's assets 10 MS own
use and danger that II the present officers are
lett ia charge all tue property ana effects VIII De hope
lessly lost.
Ill Eugtne Alexander makes AFFIDAVIT as TO the In
sOlyency of the com .auy, and continues: -
Further dcponcnt that he hus discovered that
The If the sad corporation or some OF them nave
bteu acting cosOn with certain OF the stockholders
the roof 10 save SAID stockholders from the liability lm
posed upon them by the act OF incorporation ot said
defendant that il to on the 23h December 1871
on which day the insolvency Of the SAID defendant De-
came known 70 certain OF the stockholders, they
the said stockholders. procured some OF the
officers OF the defendant TO record transfers
of stock as ot date more than thrty days
prior To said December % said transfers of stock
were caused maze 10 John Bonner " 20, a urn
which had become nsOycnt through the conduct OF ts
senior member the purpose OF said transfer being, by
transferring stock Oftheir names rs OF tue aore
d time to irauducntly avoid being held liable FOR tho
debts OF the said corporation defendant.
Mr. Alexander only one half of the capital or
mil ION mas paid ill., and the Liabilities are not more
Judre Van Hocsen has denied the application Of Will
linn Bcldcu & Co., Stout * Co., Ham Munroe,
W s Nichols K Co.. and Denman X Co, borrowed
from Bonner X Co.. 10 have the assignee au.
thorize the transfer by Russell sage OF stock epedged
hy Bonner x Co, payment OF the loans lhe Judge
places his the ground that be has no jurisdiction
over the assignee until he files his bonds.
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