New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-08
DETAILS oF TIE SUSPENSION.

DETAILS OF JHE SlSPENSlDN.
The announcement Of the failure OF b. G. Arnold
& Co. caused little excitement and surprise, not
only in the trade, of which the firm has been for
many years representative member but also IN
commercial and financial circles generally. The
former prominence of the house, together with its
great age and the general belief that other firms
wond be carried down III its fall, combined to make
tho failure OF great interest. Rumors of the
suspension were circulated in Wall-st. early IN
the dav but il was not until noon that these reports
confirmed.
The immediate cause Of the failure is generally
believed to be the sudden death at Boston Saturday
evening of O. G. Kmbail, whose relations with the
house of b. q. Arnold & Co. have been for many
years most intimate. His purchases and importa-
tons of coffee have been made for the joint account
of himself and the New-York house, and the compi-
cations likely to arise from his sudGen death are be-
leved to have hastened this failure. However, no
statement in regard to the affairs of the house could
be obtained yesterday. The liabilities were now
rumored TO be very large, and now very small; but
the members OF the firm the assignee, and their
counsel all refused to give even an approximate
statement of the condition of the business.
Mr. Arnold was at his Office during
the day. He said to TRIBUNE re-
porter who asked for particulars of tie failure,
that he appreciated the proprie'y OF the inquiry
but that he could not furnish the desired informa-
ton under any circumstances lie added that no
meeting of the creditors had been beld and that no
detailed statement of the condition of affairs had
been vet prepared. lie declined, under these circum-
stances, to say anything more. except to
express great confidence in the ability
of the firm TO pay al its debts.
William NJ Prichard. of the law firm of Pnchard,
Smith & Cleveland, No. 10 Wal-st. who was said
70 have general statement Of the assets and habil-
ities refused TO give even synopsis OIL lie said
that he held the papers simply as counsel ana that
he could not reveal the Affairs Of his clients. Later
in the day he reiterated this refusal, but said tho
statement would be made pubic in a lew days
EXTENT OF THE LIABILITIES.
The liabilities, however, were estimated by per-
sons ac0uainted with the business OF the firm at
between 81, 100000 and $2,000,0OO. OF this
amount the greater part is believed to be due
TO banks and bankers on promissary notes
and in the settlement of exchanges. The Bank OF
New-York. of which Mr.. Arnold was a director. is
believed to hold large amount, but the president.
Charles NJ Fry said yesterday that the sum duo
tLe bank was amply secured He added: I'VE
received notice from B. g. Arnold d Co. early this
morning that the firm had suspended. and we were
ordered not to pay any OF their checks. We held
small amount of the firms paper but 1t was all well
secured By warehouse receipts"
H. g. Sherman president of the Mechanics Ma
touai Bank. SAID: - have known Mr.. Arnold
since he first came to this city from Providence In
1910 He was considered by all business men TO
have been straightforward business man, ana
althou oh he has had bad luck during the last year.
and has lost considerable money i'll specuations in
tea and coffee which injured his credit. believe
he will paw hundred cents on tho
dollar and have considerable surplus
besides. He has the sympathy of the entire mer-
| camille community. and no one would shrink from
| extending helping hand. The firm has not much
| commercial paper ont, and what III mas sweli
| secured The principal Indebtedness, believe, Is
| With foreign bankers on Sterling exchange HIS
| Ney-York accounts principally with the
| National Bank of New-York Mir. Arnold was said
| az one time 10 be worth T2,0o0OoO.
| His house, at No. 2Io Msa'son-ave..
| cost 81 so 900, and is no donbt worth fully that
price now 1t is clear of any incumbrance. He has
| also n house and sixty acres of improved land in
| Wcstchester County, his sumner place. on which
there is a small mortgage. This property has ap-
| nreciated in value since he purchased H. lie also
! o,yns the building occupied by Bowie, Dash q Co.,
| NJ 1e6 Pearl-st The entire real estate IL valued
| ot above $500 OOO and the cash capital of the firm
was 100000. Mr.. Arnold Las always been
| prominent man among the merchants OF
| ,his city. and although he has never
held a political office. has occupied many positions
| of trust He is president of the Downtown Mer-
chants Club in Pine-st, director IN the National
Rank of New York and director in other financial
| concerns"
| Evervwbere in business circles yesterday great
| symnotbv WAS expressed for the embarrassed firm.
| and many prominent men called Mr.. Arnolrs
office in the course Of the day to express personally
| their surprse and grief. B. G. Arnold & Co. havo
| enoyed excellent credit icr many years, and
| altnourh the firm has suffered the yieissiuces m
cdent 10 long mercantile career, s failure at this
| time was generally unexpected. Durng the last
few months its credit has been impaired sonew hat.
| but its paper has been sought by bankers ut low
rates of interest For several years. however, tho
| house has been gradually losing its supremacy IN
the trade which ut it's highest IN the years I'M
mediately preceding the panic oi 1873 In that year
ira mower was lost and 1t never afterward fully
recovered For several years before that time the
firm controlled the coiloe supply of tho world, aud
Mr. Arnold, the head OF the ho"s"' WIS ~no"" 20 WV
Coffee KING
| MR. KIMBALI's CONNECTION WITH THE HOUSE.
| a G. Kinball. whose srdden death Saturday
| .venino ~ referred to above as possibly having
rrec,otated the failure had been for several years
one of the most prominent dealers IN coffee IN the
| United States lie began luSsness about twenty
years ago and for a time waa connected wit tho
firm OF Kimball & Harris. Boston. In 1868 be-
came member of the FRA OF yinel q Co.. which
wos for several years the largest coffee house in
the New-Engiand States H. remained member
of that firm about six years, and 1t was during this
connection that he began the operations which made
Ina name famous in the trade. lie was tue New
York buyer for Dwinel & Co., and about oae-hal
of his time was spent in this city, IL, here formed
! the acquaintance of Mr. Arnold and OF other larg'
-, ann from this sprang the combination