The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-04
BONNER'S AFFAIRS.
DIFFICULTY BETWEEN THE ASSIGNEE AND THE
HOLDERS OF coLLATERALs--AN EFFORT TO

DIFFICULTY BETWEEN THE ASSIGNEE AND THE
HOLDERS OF coLLATERALs-AN EFFORT TO
uNRAvEL THE TWISTED sKEIN.
as the days 60 by the Affairs OF the defaultcd rm OF
John Bonner Il Co. seem to tncome more involved.
This arises some measure itwould seem, from tho
fact that no orders made by the Grm before
making an assignment, for the return Of the secrr-
ties rep,edsed by them AS result OF this omission
the gneo concludes to be his duty TO interfere
between the original borrower aud tho firm or bank
holding the rcpledged collateras, the PROPOSED
intention being protect the interests OF the general
creation. The assignee yesterday notified those with
whom securities had been rcpledged that he should
them responsible any obtained by sales
OF collatcrals over ana above the amount oil
loans Thus, for Instance six firms may have pledged
securities worth 100000 tor asgregans
$40, 900, which Bonner repledgod for $4,000. Now
the bank firm holding these notifies the assignee
OF an intention 10 sell them "under the rule" In tho
Exchange and he In turn notifies hcm that he shall
hold thom responsible "tor tho amount obtained in
excess oil tho loan for the benefit Of the gen.
erai creditors" In opposition TO this tho original
borrowers say that they sufficiently injured By
having 10 pay tho advance obtained by Bonner
l. Co., and claim the right 10 All equitable dis
tributon Of the excess on sales OF this nature.
This they say they could havo done II they
erals, and II no assignee had been appointed
by firm that had assets such AS they may DO
compelled 10 contribute in this way. There some
indignation expressed consequences Of this state OF
affairs yesterday, and despite the position taken by
the assignee securities sold under the rule.
These were understood TO be coateralS held BY
Messrs Bcden & Co., aud consisted OF the following
iots:-l00 shares Eric, leo Lake shore, zoo CElon
Pacific 400 Western Onion, 90 Rock Island, 80 North
preferred and 100 shares Ohio and Mississippi
ia brn-t At EVnha An IN Ia
writer yesterday that the Exchange always asserts
The right 20 close out contracts under tho rule when
lrm iaiis, and tiat when temporary loans ARE made
between members coiateras can be sold under the
rule The same CONTRACTS Tor purchase or sale.
i, The ual note made when money rs loaned on col
htcras has provision for the transfer or hypothc
cation OF tho securities Pledged and brokers say such
practice not recognized by the street, but there
are existence oil sorts OF orns one o! which con-
ta.ns clause permitting the firm advancing tho
money TO "usc transfer or hypothecate" the collat
craL II Is Supposed however that this clause
oil any consequences, as no man sign away hts
rights does 1T follow should he agree TO sign such
singular note, that the repledgng of his securities
must be at an advance.
In yesterdays statement of the securities repedged
by Bonner appears that there were rehypothccatcd
Bankers ana Brokers', So, 900 in first mortgage Wa
bash bonds ana So LOO in Southern Pacific 1rst mort
E loan ooo but The rm paid to the
PhGnix Bank $4,000, making the total OF the loan
only s3l, goo.
Some o the losers by the Bopncr deIacaion, IL was
currently reported made efforts TO obtain from Judge
Murray, sitting The Tonbs, Tor the arrest
Mr.. Scwell Bouner's partner, but alter careful
consideration OF The evidence submitted the naSls-
traie refused TO issue one.
Tue question Of MI Sewcs kno wedge OF the firms
transactions and the OF his responsibility
considered yesterday on the street aud IN way 10
Indicate that The sympathy first lelt for him does
increasa Members Of the board say he lent Dor-
rowed money tor The Glm OF John Bonner u Co. on
the floor OF the Exchange, and some arc>unchartnble
enough 10 imply tuat hc must have had some know-
edge OF tho drllt OF things.
There Is nothing 70 add TO the list OF losses Mr.
Trenor w. Park does not know yet how much his loss
will be-
At the Fourth National Two loans taken up
Before permitting loan 10 be taken up the bank re-
CURES proof OF ownership check Tor the loan and
interest and guarantee mat any future claim tor
margin shall ba made good.
The Central Trust Company have not ascertained yet
who are the Of the securities they hold. They
are gong 10 apply Tor authority TO sell out.
PROCEEDINGS
Mr. Henry 3. Sm.th and Mr.. William Beck Smith,
creditors OF the bankers and Brokers' Association
entered 1.-The formal complaint IN tho suit oil Smith
against the ASSOCIATION. Mr. II. Eugene Alexander
states IN divit that there has been fraud
the part OF certain stockholders OF the company
by collision III ante-datng the record oil transfer
OF the stocks moro thun thirty days before tue both
december. The stock OF more than ST. 600, 900
The molion for tho removal oil Mr.. Cutting IRON the
receivcrship went over until Monday next.
Judge Van Hocsen yesterday uoniei the motion, on
the application OF Stout Co., 10 compel Mr. Grls-
void give an order on Russell Sage to deliver up
tho securities rehypothecatcd by the fugitive broker
with him. Judge Van Hoesen says lie has Jurisdic-
lion in the matter until tue assignee nIes his bond.