Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-12-08

ROw's This ?-Nobody Failed When All
Honest Men Believed Hancock Would Be
Elected-But Now Every Day Brings a
FalluYe or Wore-Here's One For q
Million.
NEW YORK, Dec. 7.-B. u. Arnold & Sons,
coffee dealers, 125 Front street. made an assign
ment to-day to j. Lawrence McKeever, 12S
Pearl street. The rumor became known before
noon, but no credence was placed upon it until
IL 80 o'clock or SO, when it was authoritatively
stated the assignment had been made. The
unsecured liabilities are placed at between
$3.50, 1000 and $1,00O,000, between this city and
Philadelphia. For some months the credit
of the house has been impaired owing to its
known connection with vast coffee specula-
tions, and the shrinkage in that article serious.
ly affected the standing of the house, but
failure was not considered for an instant. Its
transactions have been on the grandest scale.
It tried to control the entire coffee market of
the world. The suspension created very little
excitement on the streets. 1t is reported that
several large Philadelphia houses have been
compromised. A friend of the firm stated this
afternoon that they would pay every penny
they owed; that Arnold owned large amount
of irst-class stock, and large blocks of valuable
real estate. He stated the firm held over
$500, 600 surplus. The sole cause of the fail
ure is speculation in coffee. As soon as the
failure became known, many expressions of re-
gret from prominent business men and bank
ers poured into the Office, and several tele-
graphic communications were received
from Philadelphia. B. G.. Arnold
has always been regarded as one
of the foremost and thorough practical bust
ness men in New York. The firm were the larg.
est operators in coffees and teas in this city
and probably in the country. Originally the
firm WAS Reed & Lay, which was established
about the opening of the present century.
Soon afterward Lay went out and the firm
name was changed to Reed, Hampstead &
Sturgis. Later B. G.. Arnold, of the present
house, became partner under the firm name of
Sturgis, Bennett & Co. Bennett afterward
went out and the firm name became Arnold,
Sturgis & 90. About ten years ago, when MIR.
Sturgis, Jr., retired, B. G. Arnold became the
head of the house under the present firm name.
The rumor of the suspension spread
part Of the city and caused
considerable surprise. Coffee dealers in Front
and Wall streets expressed sympathy for
Arnold in his misfortune although the opinion
seemed to be general that after the accounting
had been made the assets would be sufficient
to cover liabilities. In several banks before
the suspension of the firm had been publicly an
nounced, it was said B. G.. Arnold & Go. we're
expected to fail by o'clock. The late shrink.
age of coffee and tea was assigned as the prin-
cipal cause of their misfortune. It was also
said the death Saturday night of o. G. Kimball,
of Boston, had probably affected their
credit and accelerated the Suspension. Kim
ball was q large operator in coffee, and was
known to be an extensive holder. His busi-
ness relations with Arnold & Go. were under
stood to have been very intimate for number
of years. he had important business come c.
tions in this city, where he passed much of his
time and was we'll known throughout the coffee
trade. He was member of the Union League
club.
1t is said that nineteen cars. each holding
twelve tons of coffee, were consigned to one
firm in st. Louis this morning.