New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-08
which largely controlled the coffee trade of the

N~-N~
country.
b. G. Arnold & Co., Bowie, Dash & Co. and o.G
Kimball. representing Dwinel & CO., united to
regulate the prices and supply of coffee in the United
States They operated on joint account, and their
chief aim was TO control the Java coffee trade
At times the combination very success
full and. holding almost absolute control over
the market, dictated terms 10 smaller dealers It's
success. however, was not uniform. and IN 1874 the
firm of Dwinell & Co. was dissolved and MI KIM
ball engaged n business on his own account under
the name OF o. G. Kmball Il Co. The operations
of the three firms were continued until about year
ago. when there q rupture. For the last SIX
months il is said hat Bowie. Dash & Co. and b. O..
Arnold & Co. have held no business relations with
each other. Ii is understood. however that Bowie
Dash d Co. still maintained their alliance with
o. G. KImball 81 Co., and that the latter house still
conducted operations for the three houses
The sudden death of Mr.. Knball on Saturday left
the affairs of the syndicate in peculiar position
Mr.. Kmball had no partner to settle ms an ms
The confusion which IT is generally believed his
death will cause is presumed to be the immediate
cause Of this failure About year AGO Mr.. h mbal
protested to lie worth about S250OO0 but from the
losses which have been sustained recently by the
decline in coffee it is probable that this amount has
been greatly diminished
The sudden death of Mr.. Klmball, which was
known in this city Monday morning, had percep-
tible effect upon the coffee market. prominent
dealer said yesterday that it seemed at once to
throw a blight on the trade 1t feared by many
he said that Mr. KmbalPs death would result III
some disaster Ii was limited, indeed, that the death
might net have been entirely from natural causes
Mr. Kimoall was in New-York on FRI
day returning to Boston that night. lie
was at his office at No. ~ Broad-ss'
Boston during the business hours of Saturday, bit
died about 10 O'Clock that evening at lis house, NJ
660 Tremont-st. The cause of his death is SAID to
have been apoplcxy, and he expired III few min
utes.
COMMENTS AN OLD MEMBER or THE FIhM.
A prominent business man, who for some years
was q member of the firm convcTsed last evening
with n reporter of TnE TRIBUNE about the failure.
II came upon me to-day with the force OF a
heavy blow" Le said. Z" 1t was absolutely unex-
pec.ed because except for the general distIust OF
coffee the facilities of the firm for obtaining money
must have been good at any time in the history
of the house. Men OF higher character than the
members of the firm existed"
" To what do you attribute the failure =
THAT would he hard to say. / suppose it must
be attributed first. although indirectly, to the es-
tablishment of direct Geographic communication
with Brazil which shortened the span of the opera
t,ons of the house and prevented working upon
the homes and fears of the market 1t was for
m,rly the habit of Mr.. Arnold TO give orders by
cable. which were lodged at Lisbon and then taken
TO Brazil by British steamers. He would then get
the latest adyices and lay his plans to control the
market"
What superior facilities had be for getting later
advices than others in the trade y
"Wel. not any, except that he employed the best
correspondents. He got news from all parts OF the
world. aud then digcsted it, MI. Arnold had per-
feet genius for drawing the 1glt conci lsions from
Trustworthy information.
The establishment Of teeGraphic eomnlnnica-
ton YOU say was the primary cause OF the failure =
Yes, rs have said II shDrteFed the span or OPP
eratons hen 100, thS Il3 snppeiaS naFG gs. a
grocer can communicate directly without me ne
cessity OF approach ng the large houses ~ ms
means the man who bought only fifty bags of coffee
could buy cheapy as Mr.. Arnold, who bought
10000 bags ,
''Wnat other Influence operated against the
The sudden death of large Boston operator,
Mr.. Kmball. had bad influence by deadenlng the
market, and the money market has been I'M
usually hard and stringent. There has been
recently strong distrust OF coffee on n aG-
count of the enormous supply from Brazil
With few exceptions. 1t has been receding mar
kel for six seven years There have been one or
two raIying fluctuations, but as rule there mas
been steady and gradual decline. IL Is no longer
the custom carry large stocks. whereas IN 1878.
Tor instance ii was not unusu Il for the irm OF IS g.
Arnold & Go. to have on hand 200 bags. They
were the largest house III tie world ana were Iealy
the makers OF the market whenever anybod khew
that they were BUYERS coffee advanced 1T once"
- Do yOI regard the failure a. dlsasiTouSI .
NO. because never looA upon any failure as DIS
astT0us when know that the debtors are men OF
inte rity and disposed to meet their obligations"
- Do you regard the failure then as a crash OF
q tempo ,arv EN- baTrassment =
"WitaOut fuller mfg matiOu than have can
only express, an opinion. believe that 1t is by no
means crash. bu; that he firm will ayevery DOL
lar OF indebtedness. Ii the bankers who have loaned
on coffee would look coolly and patiently az the
matter, they would save themselves and the mar
ket lle assignee, j. L. VI Keever. Is Intimately
lin tety with
the article Of coffee thoroughly, and known 10 the
trade and among baukers He was formerly of the
firm OF Elliott * McKeeyer, OF New-Orleans, agents
of Duncan, Sherman " Co. OF late years lie mas
been in the coffee business with the younger son OF
MIR. Arnold. He has been IN Brazil number OF
times. and this adds TO his fitness for the position.
"Can you give me an approximate idea OF the
liabilities and assets of the hru Z"
"No, | cannot, a. have not been connected with
the firm for four years moro, and have not the
information Won ask for. Tne operations OF the
house extended into the millions of course Dnt 90
know bow the business may have been effected
Mr.. Arnold has very valuable real estate, but do
not know how be has treated it" 49,
"What has been the history of the firm p
Until now II has never known reverse or embar,
rassinent. The foundation OF the house was lad
many wears ago for II is one of the old New-lOrk
houses. The present head entered the mouse more
than forty years AGO as bookkeeper' ana his Ca
paclty soon raised him to the position OF partner"
What do you think will be the effects OF the fa-
ure 7 Are any other houses involved
90 do not know that any other house Is involved.
and do not think that any 10 directly involved PIT
the outlook Tor the trade is bad. he
failure OF q house IN the coffee tiaue ABOUT SIX
weeks ago set everybody or the Qai rice to know
what would follow. Dlstrust was increased Inc
failure of such house b. G. Arnold & Co. can
not fail to have very great effect. The most I'M
portant thing TO say in TINS connection is TO urge
the bankers who have loaned upon coffee to keel
cool"
TIE ASSIGNEE RETICENT.
j. Lswrcnce McKccver, to whom the assignment
was made, was asked by TRIBUNE reporter for par
ticulars of the failure. Mr.. McKeever said that he
had not received the schedule from the firm. and be
could give no information. He professed to be ig
norant OF the condition Of the business
HISTORY TUE FIRM
The orr ni nal firm WAS Reed & Lee aud was es