The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-12-09

rHE SUSPENSION OWING TO U.f0RTuXATE
sPEcuLArsOxs AND DECLINE IN THE PRICE
OF CorrEE.
New York Jydrnai OF Commerce
The rnmofs mat have been In circulation
for some days past that several prominent
coffee houses were Ia difficulties eliminated
Tuesday IN The report that Messrs. b. Il.
Arnold Il Co., the leading house Ia the
trade, bad suspended. At first the report
was not credited except In interested cir
cles, rs the house has always borne the
highest reputation for financial sta0ility.
and It's dealings have been on gigantic
scale. But ab0ut noon the announcement
was officially made that The members OF the
| firm had made an assignment to MIR. j.. Law
renee McKeever. No. 12S Pearl street.
| As soon as the authoritative statement
was known the "rumor committee set to
work, and In short time reports affecting
the standing OF another equally welI.known
house ard OF several smaller concerns, both
here and in Philadelphia, were In circula-
ton. There were no other suspensions,
however, officially announced, though sew
eral firms are known TO be In serious din.
euIties.
At the Office of b. g. Arnold IL Co. no
information could be obtained beyond q
confirmation Of the statement that they had
made an assignment. Members OF the trade
state, however, that the firm has been seri-
ously embarrassed for some time, owing to
the immense stock Of coffee they were
carving i'm the face of notwithstanding
market. 1t was said that this firm, IN cor
nection with Messrs. T.. Risley 81 Go. (who
recently suspended). o. g. Kimboll q Co.,
of Boston. and several other leading firms
in this city, Boston, and Pbiladelpbia, had
formed combination to contro oil this seasons
coffee crop. They pu. chased very large
quantities during the summer, but the price
has for some months past steadily Declined,
the decline since the 1st OF October being
about three cents per pound. The failure
OF Risley IL Co., owing TO the large stock
they were carrying, bad an uDfayoraDle
effect on the market. and 1t has been In
very precariou, condition for some time
past. The immediate cause OF the failure
OF b. q. Arnold IL Co. Is attributed to the
sudden death in Boston on Saturday OF Mr..
%. q Kimball, one Of The leading spirits OF
the "bull" combination.
No reliable statements OF The condition OF
the affsirs OF the firm can be obtained at pre-
sent The estimates OF liabilities current
on the street range from S750,000 to $780,
NE
600. IL Is said that tho greater part OF the
liabilities are due to banks for advances
upon coffee now 10 store, and that the most
of them are abundantly secured. Ii seems
to he the general impression that the firm
will pay in full, or very nearly so, n suffi.
cient time be allowed TO realize upon the
stock OF coffee held by them. Mr. Il. q.
Arnold has always been reputed to be very
wealthy, and the capital OF the firm was
generally stated at S1.000,000.
The announcement OF the failure excited
great surprise in general business circles,
for the house Is one OF the oldest and best
known now In business in this city, and
has passed through all the panics and pc
RODS of depression for half century with
unblemisbed reputation. The head OF the
firm, Mr.. Il. G. Arnold, is leading men,
Der of the Chamber OF Commerce, difec-
tor of the Bank OF New York, and deeply
interested in numerous other financial in
siiiutions. The house was first established
in 1928 under the name OF Reed d Lee,
then the style Of the firm was changed TO
Reed, Hampstead a. Sturgis. In 1874 Sir.
b. @. Arnold Joined It. and the name was
changed TO Siurgis, Bennett x Co. There
were many changes In the firm since that
time, but Mr.. Arnold has always been ac-
tive in its management. The present firm
NINE was adopted in 1872. and the present
partners are b. e. Arnold, his son +. b.
Arnold, and Lyman r. Green.
IBv Associated Prees.I
NEW YORK, December 8.-The Post OF
this evening saws: "The statement OF the
financial condition Of the suspended firm OF
b. G. Arnold & Co. is now in the course OF
preparation and will probably be completed
within ten days. 1t is now understood the
liabilities will reach a total Of not far from
81. 0G0, 900. and it is said that the assets have
a value Of abou, S2.300,000; although con-
part OF these are not readily con-
veriible INFO cash. The outstanding single
named) paper OF The firm, we are told.
amounts TO from 100000 to 100000. This
Is OF course unsecured, aud II is distributed
in small lots among paper buyers, including
banks here and in New England. The re-
OF the firms obligations are said 10
he specifically secured. Mr.. Arnold is a
director in the Bank of New York. That
Institution holds only $4,000 OF his paper,
and is amply secured for tue remainder OF
his obligations. Great sympathy Is eX-
pressed for Mr.. Arnold, whose misfortunes