The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-01
Ruin of the Bankers and Brokers
Association.
Il MILLION DOLLARS INVOLVED.
Statements of Those Whose Securities
We're Repledged.
GONE TO JOIN MURPHY.

Wall street and its environs were IN state oil pro.
found agitation yesterday. 1t was another instance
OF the Civilization OF margins" Rehypothecation
again resulted in suspension, with 'dincrences'' OF
somc 100000 In other words. the firm OF John
Bonner Co., brokers. No. ~ Broad street, failed,
leaving meet obligations incurred 10 about
the mentioned. Rumors OF disaster nied the air
hofore the beginning Of business on the Exchange,
and shortly alter the following notice, read from the
chairmans desk, opened the FIRST chapter OF Il days
history not soon to DO forgotten IN financial crcles-
10 PRESIDENT MEMBERS THE STOCK Ex
iksrLEnsS- we regret 70 announce our inability to
sswo Daf Of ths @ Of Bs,cnoqd seward rswoid
Da Costa assignee who is preparing statement OIL
''' JOHN BONNER CO.
When 1t is known that tho suspended irm haa made
advances securities valued ut considerably more
than 81 600 600 belonging to about three score firms
and individuals In and about Wall street, ono can
readily imagine the effect of this announcement.
Tue Offices Of the 1rm were early besieged by an
anxious throng Of Interested nnanciers bent on
Efforts to trace their securities and nervous
with fear at the prospect of heavy losses. The
books of Bonner & Co. were found TO have
been well kept, and everything written
up TO the very last transactions OF Saturday after
noon Mr.. Bonner was missing. II was believed he
had aed to Canada. With such excellent aid as the
well kept accounts afforded It did not require much
time to learn how the crash had come about Mean-
time the street being treated to a second chapter
the story of failure. The Bankers and Brokers'
Association, which started in 1867, with half paid up
capital OF 81, o0O, 0OO with Mr. Bonner for presi
dent, announced in card over the cashiers win
dow :--.'rhs bank has suspended payment"
In brici 1t has been said OF this concerns relation
TO Mr. Bonner that he carried IL in his pocket" an
assertion receives pronounced emphasis from tho
circumstances OF his flight The concern owes dcpos-
,ors about $50 600 and assets Its stock, ac-
cording clause In IT'S charter, is 10 day not only
worthless but represents this debt due to the aeposi-
tors. II is an obligation 10 DO met IN the future
BoSNER's METHOD.
Mr.. Bonner indus,rlously worked on the stock OF
the Bankers and Brokers' Association among the other
securt rehypothecalcd by him IN the course OF his
business. For Instance, he would loan $4,000 on a
lot OF securities TO Wall street rm and with 100
shares OF Bankers anu Brokers' Association stock
thrown In would raise $25,0u0 $4,000
the same lot somewhere else To obtain bus-
he loaned money at low rates OF interest
while paying high for himself, and rumor
had yesterday that no mad actually sold some OF the
securities which he had made advances. ono of
the last acts attributed TO him characteristic
The story goes that in the stock Exchange on Saiur
day afternoon he had tho stock OF the Bankers and
Brokers' Association bid up to 80. while this
record OF Its value being tucked through
the street the OF the Exchange
he is said to have taken TO some house down town
800 600 worth of the stock which he obtained an
advance of $25 200. In his system OF rehypotheca-
ton he divided lots and mixed in us often as possible
small lots Of bankers and brokers' stock. In conse-
quence OF this borrowers find 1t matter OF dil
fculty TO trace, when traced to redeem their Sc
curties This circumstance made it matter OF iIn,
In Iuca all ia
most concerned cannot tell the extent OF their losses
AT the Stock Exchange there were bought in ''under
the ruo' for the account of John Bonner IL Co. 1900
shares Delaware, Lackawanna and Western, 800 Lake
Shore. 100 Morris and Essex, 100 Panama and 100
Pacirc Mail, and there sold out "under the rule"
S0oNestcrn Union, 400 Lake Shore, 400 Northwest
referred 600 New York Central, 500 Michigan Cen
trail, 800 Northwest common, 200 ST. Paul common
anu 400 shares ST. Paul preferred.
Nr. Arthur Sewcll, son-in law of MIR. Lester WAL
lack, The junior partner OF the firm OF John Bonner
Co. He in the Office OF the firm during tho lore
noon, but had very little TO say. Ho seemed to be
greaty affected by tho condition OF affairs disclosed
and had the sympathy of the street in his uniortu
nate prcdicament. 1t was thought he should have
known something OF his partners OF
dong business, but 1t generously con-
Guided that no had been betrayed. Rumor
said he knew of tho flight OF Mr.. Bonner
on Sunday and consulted his lawyers then, but by
that time Il is believed Mr.. Bonner well his
way toward Canada from which he originally came
and where be Is said 10 have several relatives.
BANKERs AND IRokERS ASSOCIATION.
The Bankers ana Brokers' ASSOCIATION was organ
lied unuer law Of the stulc IN 1861 1t was
stocks for brokers OF limited capital II was
not much OF SUCCESS, however, as IL was
81 s no sI naue m "e
lions, the lateness OF the hour at which business
roses on the Exchange, and the fact that deal
ings had through II exposed operators doines
20 the prying gaze OF interested nnanciers.
1lr. Bonner was always us bead and ironi.
up lhis has all disappeared through Donner's
puiaions and IL now owes some forty dcposiIors
about $4,000. This amount IS considered safe II the
bona tide stockholders responsible for the amount
Section 81 OF the charter granted April 20 1867, pro-
vdcs sthat tho STOCKHOLDERS OF said association shall
be Sc veraily liable for all debts ana liabilities OF
association amount equal TO ne amount OF stock
held ana owned by them respectively, winch liabiics
snail ADDITION TO their liability TO pay ia ful the
stock subscribed Tor or purchased By them:p
Mr. Bonner did what he pleased nth the associa-
ton. He made II pay for about wo-thrds OF us own
stock. which ne bought, anu, having obtained pos
session he hypothecaled II Tor all he could get
on IT, lie Is said to have advised Mr. G. H. Oley, the
manager OF the concern, 10 leave with HIM on Satur
day but Mr.. Oloy remained ~ his post ana was ready
10 answer ANXIOUS inquiries YESTERDAY Mmong Tue
Albert Stckney and b. o. Boyd
THOSE INTERESTED.
The following are among those who had transactions
with Bonner " WI uhu HVSt VI "iVm lOSe " wv
nrn,,s operations nj essrs. Boyd a. Vincent, No 80
broad street. Henry CLOVIS CO., Exchange cJurt II.
X wilcox No "a Broad street; Van Schaick & Co,
No is Broad street; G. +. Bonner n Co.. No. 20
broad -treet; ,Belden Co., no. ~ broadway; jay
s;oulu Sidney Dillon, Harry Montague, the
ACTOR: Fitznueh Stewart, No. New
street: Nichols Co., No. SO Wall street; Farmers
Loan aud Trust Company, Bartlett y hcigs Drexel
nuilulpa: o. j. Osborne, No. "a Broad street kclins
1,rothcrs No 10 Broad street Trenor W. Park, No.
Nassau street; Ham a. Munroc, No 23 Nassau street
Rank OF New York ii. H. HOLSTER a Co, Now street
n ID. Kennedy a. Co., n. &. sicdman, Stout Co, NO.
10 Broad street; \. Is. Wallace ca, Broad street.
pelow arc some detailed accounts Of transactions
y IN Wallace IL Co. loaned Bonner d Co 100000
~. No coiIaterals pledged Tor tnis amount are some
,.rss o tho Bankers aud Broke rs' AssocniiOn But
Outside oil this tho oaDing hrm say tue security Is
sm ME 10 cover the loan. 80. . -, -
,4snrs ~ any considerable extent. Among the SC.
r ,.,es he by thcm shares OF The doaulted
slock.