The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-01-01
D0MESTIC INTELLIGENCE.
THE EAST NEW YORK SENSATION
FAILURE or John BONNER e. co.
LiaHilstIcs EI,000,G0O tn &l,S0O.0O0-
trsuked Methods et the Ftrm-Re-hy
pUshecatIen of securities s-B0nner n
Easwftfwn

pD&hcCatI0n OF ACCOMPLISHMENTS u
Fugitive.
EFw YonK. Dec, s1.-Ths morning Wal 81 street &c
taitare of prominent flrm. and before the
ktccK Exchange opened for business here were
rasnors Of great financial disaster. The mar
kat opened firm, and shottl after letet from
John Bonner 4 %. was read announcing their
inability to met engagem,ents ana the ahp'lnt app
preparing 9 stateme mt Of affairs The excite
nnent was Intense, and rumor placed the
certainly not less than $500 ooo AT the Office Of
ment, and Mr., Bonner could not be found. All
Laiar. Il was learned that NJ, Bonner had OBJ
tanned loan OF sab,ooo. and this morning dis
Mr. Griswold, the assignee stated that the loss
would certainly be over s4oe 900, but the amounts
were divided up among large number OF peo-,
pie. Mr. Bonner was president OF the Bankers'
house for impecunous brokers. The capital
of ths concern was 81 900 900, fifty per cent paid
In III is said that Bonner Appropriated money
the. whole capital OF this concern has been
this ' was By buying sock k of The company. and
making the manager pay for it, and by hyoothe-
eating the stock 50 received he WAS enabled to
make large amount OF money.
When these facts became known the excite
nent III. Wall street was intense, and an anxious
crowd thronged the doors leading to Bouners
ofIfee but Benner was still absent: The bank
ers' and Brokers owes s5o,oao tp depositors, for
which the stockholders are liable.
The assignee could not discover that Bonner
had run away with any money az he books A, and
cHsh accounts appeared to be all right The
tgsses ,, must hays been caused BY % over e speona
and also La personal expenses and the high rate
Of interest the. Arm had to pay for carrying
their stocks and loans.
No checks as yet have come in from banks
showing that Bonner took any money with him.
All the leading houses In Wall and Broad streets
are sRid to be among the losers. 1t has bsen as
certained that Bonner b Co. borrowed over
u ,sgD.Ooo on securities pledged with them for
The Bankers and Brokers' Association will.
Il ~ said not be resuscitated, as Bonner was the
, head and front Il Of III and bis directors
true, remarked a broker; and believe there
are many other banking houses doing business
On thls same plan OF tradfhg on other men 2 :
eapital by re-hypothecating securities conaded
Bonner lives on Staten 1slanl. where he has
q paiattal mansion and apendid grounds 1t
was learned TO- day that this property stands in
bis wife's. name, and is mortgaged to very
nn,aarly its full value prominent broker said :
in his pocket" He has scooped everything
and taken all but the books and the secretary.
1 e hat onner moYe as gone
Canada where he has family connections. as
has ALSO Arthur I. sewetl, Lester Wallaek 9
son-in-law who is a member Of the Arm. and
who Hiso II . reiattv1 yf the fugitive Hgunot. +
appears that on, Sunday morning A. T. Sewell
of the firm OF John Bonner 3 Co. applied to his
of his firm and the flight Of is senior member
Nothing remained to be done. save to make
an assignment for the bsnef. of all eredi org.
lin the meantime all of the securities placed
with Bonner Go, had been rapledged by tts
senior member for loans made to him. and this
money has been lost in speculation.
Bonner has taken nothing with him. and
Hewell is left entirely without means. At first
the amount of re-hypotheeation was stated
Wildly at ss0oo.op0, but after awhile 1t dropped
to the neighborhood Of s2.oooooo: but, nj the
Office, It WAS made out that 1t would fall short
of s2,oO9.0oo, and touch only sl.5oo0oo. and
probably not 20 much.
In their capacity rs bankers. they loaned
large sums to parties on collateras deposited,
and then, In their capacity as brokers. they
borrowed still larger sums on these very col
laterals.
An old gentleman in the Office remarked.
There Is nothing wrong my dear sir we have
simply done as the METERS did. yntt see."
The system pursued was 10 advance on good
1Rrketab securities about go to 10 per cent OF
their market value and then borrow from the
banks from 10 to 80 per cent,
Great indignation prevails on the street, and
there have been already II 900 shares of stock
bought and sold under the rule.
The police have begun search after Bonner,
but the clue is 50 fairt that in all probability it
will be difficult matter TO effect his arrest,
MIR. Bonner was formerly journalist and Is
well known as a writer. He was connected with
the Herald. both as n financial writer and in an
other editorial capacity, and also was subse-
uuently editor of Harper's Magazine in its pro-
slavery days. and is the author of u boys his
tory OF America.