The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1878-01-01
REHYPOTHECATION.
HEAVY FAILURES In NEW YORK
CITY.
John Bonner & Co. Pursue Some
Crooked Methods, Fail. and Gar
ry Down the Bankers and
Brokers Association.

able excitement was caused on the street
this morning by the announcement of
the failure of John Bonner Il Co., No.
32 Broad street. 1t was one OF the old
est houses on the street. The firm has
made an assignment % B. w. Griswold.
1t is said that the ia pursued the same
meth DDS charged a. 4irst Meter i Co.,
the rehypotheCstior @. securities. The
liabilities are said to b. quite large, and
several prominent spec rtors are men.
toned as being conslde' ,le losers. The
intelligence of the fsllUg has had de-
pressing effect on the stock market, and
some of the leading stocks are down one
per cent.
The failure OF John Bonner i Co. has
involved the suspension OF the Bankers
and Brokers Association, an institution
avsiled OF by small operators for clearing
stocks. Bonner cannot be found. 1t Is
thought tnat their liabilities will exceed
100000.
An evening psper has the following:
With the suspeI sion OF John Bonner
u Co., comes that OF }. S. Jackson,
smaH member of the Exchange, who was
also short OF Lake Shore and Western
Union. Some of the large stock houses
in the street are suffering by these tall
ures, their loans having been violated
and it is reported that their securities
have been soId out without authority.
1t appears that on Sunday, A. l.. Sc
wall, one of the firm of Bonner Il Co.,
spplied TO his counsel for advice and an
nounced the failure Of q firm and the
flight of senior member, John Bonner,
who had left for Canada. Upon his sd-
wise an assignment WAS made TO b. w.
Griswold, who is row engaged in
strengthening up the affairs OF the firm,
and who will make a report thereon
as soon as possible. The amount OF Sc
curities rehypothecated is now stated at
100000, all of which 1t is said, has been
lost IN speculation, Conner having taken
nothing with him in his fight A large
plumber OF individuals and firms are sui
ierers by the failure, Including Henry
Clews and Van Schoy y Co.
Mr.. Seward partner ot the assignee,
said the loars secured by Mr.. Bonner on
tho hypothecsted securities were, in al.
most all eases, obtained from banks. In
some cases securities owned by different
persons were mixed together rs collst-
eral security for the same loan. Ii would
be easy, however, for each person TO find
and identify his own property. Bonner
left nc orders tor tie redemption OF Sc
curities, and indeed no instructions OF
any kind. Mr.. Seward said there were
no assets. The assignee had not
been served with any attachments,
but he had heard That some were out. he
had received large number of notices
from persons who had pledged securities
with Bonner & Co At the office of the
BaDker's and Brokers Association, the
manager, Mr.. DIN, said that the instltu-
tion was ruined by the flight of Bonner,
and that the depositors would suffer the
loss of about $4,000, for which he sup
posed the stockholders were liable. de
could not furnish u list Of the stockhOld-
eTs
The failure of j. T. Jackson, an
nounced to-day, proves to be an error, al
though he was reported 10 be IN some
difficulty.
The Post says OF the Bonner collapse:
Bonner bought all the stock OF the
Bankers and Brokers Association Of
fered compelled the manager TO pay for
it out of the funds of the association and
then took the stock and borrowed on il.
He bid S5 for the stock on Saturday, and
borrowed $4,000 Oh 100000 oft The
association is understood 20 have been
gutted in this way. The other trsnsac-
tlons are reported rs follows: He lent
! $4,000 on Panama stock and borrowed
100000 on IT. loss 100000. He lent
! $5, 900 on two thousand shares Of North
| western common and borrowed more on
it. He lent 800 900 on Sl3S, 600 in COL
lateral securities, which cannot be sc-
counted for.
The World SAYS that rs soon as those
fnancia ly Interested learned the true
state of affairs they trIed 20 trace their
securities either through indicators or
! from the books OF the firm This last
means WAS refused, ~ were also orders
| for collsterals. The assignee said be had
no power % give orders TOR Collatersls,
so that the brokers wer" almost ss much
At sea respecting their securities and the
differences they will have - pay when
the day was over as when It WAS first
! known the drm had failed