15418. Bankers and Brokers' Association (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 31, 1877
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: abb3331d

Response Measures

None

Description

The Association suspended payment at the end of December 1877 after the discovery of John Bonner's fraudulent rehypothecations and flight. A receiver was appointed and the concern was wound up (stock sold, legal suits), so this is a suspension that resulted in permanent closure/receivership. No clear contemporaneous run (large public queue/run) is described — the failure stems from Bonner's fraud (bank-specific adverse information).

Events (4)

1. December 31, 1877 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of John Bonner's extensive rehypothecation, alleged fraud and flight left the association insolvent and unable to meet obligations; suspension announced Dec. 31, 1877/Jan. 1, 1878 after Bonner's failure was revealed.
Newspaper Excerpt: the Bankers and Brokers' Association ... has suspended payment.
Source: newspapers

2. January 2, 1878 Receivership

Newspaper Excerpt: A RECEIVER FOR THE BANKERS AND BROKERS'. In the matter of the Bankers and Brokers' Association Mr. Robert L. Cutting, Jr., was appointed a temporary receiver.
Source: newspapers

3. January 6, 1878 Other

Newspaper Excerpt: A petition was presented ... for the appointment or a receiver and the dissolution of the company. On account of a receiver having already been appointed, decision was reserved until Monday, when It will again be presented.
Source: newspapers

4. December 24, 1878 Other

Newspaper Excerpt: R. L. Cutting, Jr., appointed receiver ... advertised that he would ... sell ... 7,795 shares of the capital stock of the said Bankers and Brokers' Association ... The sale was adjourned.
Source: newspapers

Newspaper Articles (11)

1. January 1, 1878 The New York Herald New York, NY

Article from The New York Herald, January 1, 1878

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Article Text

Ruin of the Bankers and Brokers' Association. A MILLION DOLLARS INVOLVED. Statements o Those Whose Securities Were Repledged. GONE TO JOIN MURPHY. Wall street and its environs were in a state of profound agitation yesterday. It was another instance of the "utilization of margins.' Rehypothecation again resulted in suspension, with "differences" of some $400,000. In other words, the firm of John Bonner & Co., brokers, No. 32 Broad street, failed, leaving no assets to meet obligations incurred to about the sum mentioned. Rumors of disaster filled the air before the beginning of business on the Exchange, and shortly alter the following notice, read from the chairman's desk, opened the first chapter of a day's history not soon to be forgotten in huancial circles:To THE PRESIDENT AND MEMBERS OF THE STOCK ExCHANGE GENTLEMEN-We regret to announce our inability to meet our engagements. We have appointed Mr. Burr Griswold, of the firm of Blatenford, Seward Griswold & Da Costa. our assignee, who is preparing " statement of our affairs. Yours,respectfally, JOHN BONNER & CO. When It is known that the suspended arm had made advances on securities valued at considerably more than $2,000,000, belonging to about three score firms and individuals in and about Wall street, one can readily imagine the effect of this announcement. The offices of the firm were early besieged by an anxious throng of interested fluanciers bent on Biforts 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 was written up to the very last transactions of Saturday afternoon. Mr. Bonner was missing. It was believed he had fled 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 Meantime the street was being treated to a second chapter in the story of failure. The Bankers and Brokers' Association, which started in 1867. with a half paid up capital of $1,000,000, with Mr. Bonner for its president, announced in a card over the cashier's winbank has suspended payment. In brief, It has been said of this concern's relation to Mr. Bonner that "he carried It in his pocket," an assertion that receives pronounced emphasis from the circumstances of his flight. The concern owes deposltors about $50,000 and has no assets. Its stock, NCcording to a clause in its charter, is to day not only worthless, but represents this debt due to the depositors. It is an obligation to be met in the future. MR. BONNER'S METHOD. Mr. Bonner industriously worked off the stock of the Bankers and Brokers' Association among the other securit es rehypothecated by him in the course of his business. For instance, he would loan $20,000 on a let of securities to some Wall street firm, and with 100 shares of Bankers and Brokers' Association stock thrown in would raise $25,000 or $30,000 on the same lot somewhere else. To obtain busi. ness he loaned money at low rates of interest while paying high rates for its use himself, and rumor had it yesterday that he had actually sold some of the securities on which he had made advances. One of the last acts attilbuted to him was characteristic The story goes that in the Steck Exchange on Saturday afternoon he had the stock of the Bankers and Brokers' Association bid up to 85. While this record of its value was being ticked through the street on the wires of the Exchange he is said to have taken to some house down town $100,000 worth of the stock, on which he obtained an advance of $25,000. In his system of rehypothecation he divided lots and mixed in as often as possible small lots of bankers and brokers' stock. In consequence of this borrowers find it matter of some difficulty to trace, or when traced to redeem their se. curities. This circumstance made it matter of Da. possibility to locate all the losses. Indeed, the firms most concerned cannot tell the extent of their losses. At the Stock Exchange there were bought in "under the rule" for the account of John Bonner & Co. 3,000 shares Delaware, Lackawanna and Western. 500 Lake Shore, 100 Morris and Essex, 100 Panama and 100 Pacife Mail, and there were sold out "under the rule" 500-Western Union, 1,400 Lake Shore, 400 Northwest preferred, 600 New York Central, 500 Michigan Central, 300 Northwest common, 200 St. Paul common and 2,100 shares St. Paul preferred. Mr. Arthur Sewell, a son-in law of Mr. Lester Wallack, 18 the junior partner of the firm of John Bonner & Co. He was in the office of the firm during the forenoon, but had very little to say. He seemed to be greatly affected by the condition of affairs disclosed, and had the sympathy of the street in his unfortu nate predicament. It was thought be should have known something of his partner's manner of doing business, but it was generously concluded that he had been betrayed. Rumor said he knew of the flight of Mr. Bonner on Sunday and consulted his lawyers then, but by that time It is believed Mr. Bonner was well on his Way toward Canada, from which he originally came and where be said to have several relatives. BANKERS' AND BROKERS' ASSOCIATION. The Bankers' and Brokers' Association was organIzed under a law of the State in 1867. It was originally intended as a clearing house for stocks for brokers of limited capital. It was not much of a success, however, as it was found difficult to effect the purpose intended in consequence of the diversified nature of stock transactions, the lateness of the hour at which business ploses on the Exchange, and the fact that deallogs had through it exposed operators doings to the prying gaze of interested dinanciers. Mr. Bonuer was always its head and front. Its capital stock of $1,000,000 WILS half paid up. This has all disappeared through Bonner 8 manipulations and it now owes some forty depositors about $50,000. This amount is considered safe if the bona fide stockbolders are responsible for the amount. Section 21 of the charter granted April 20, 1867, pro. vides "that the of said association shall be severally liable for all debts and liabilities of Said association to an amount equal to the amount of stock held and owned by them respectively which liabilities shall be in addition to their liability to pay in full the Block subscribed for or purchased by hem: Mr. Bonner did what he pleased with the association. He made it pay for about we-thirds of 118 own stock. which he bought, and, having obtained possession of 14. he hypothecated it for all he could get on it. He is said to have advised Mr. C. H. Oley, the manager of the concern, to leave with him on Satur day, but Mr. Oley remained at his post and was ready to answer anxious inquiries yesterday. Among the directors of the concern were named D. W. Berdan, Albert Stickney and F. O. Boyd. THOSE INTERESTED. The following are among those who had transactions with Bonner & Co., and most of whom lose by the firm's operations:- Boyd & Vincent, No. 30 broad street; Henry Clews & Co., Exchange court: H. R. Wilcox, No. 54 Broad street; Van Schaick & Co. No. 13 Broad street; G. T. Bonner & Co., No. 22 Broad "treet; Belden & Co., No. 72 Broadway; Jay Goulu, Sidney Dillon, Harry Montague, the netor; Fitzbugh & Stewart, No. 7 New street; Nichols & Co., No. 33 Wall street: Farmers' Loan and Trust Company, Bartiett & Moigs, Drexel Building: C. J. Osborne, No. 34 Broad street Refins Brothers, No. 13 Broad street; Trenor W. Park, No. 9 Nassau street; Ham & Munroe, No. 23 Nassau street; Bank of New York, H. H. Hollister & Co., New street; H. H. Kennedy & Co., E. C. Stedman, Stout & Co., No. 19 Broad street; F. B. Wallace & Cr. Broad street Below are some detailed accounts of transactions AFB. with,the Waliace firm:- & Co. loaned Bonner & Co. $100,000.

2. January 1, 1878 The New York Herald New York, NY

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FINANCIAL AND COMMERCIAL. Departure of the Old Year in Wall Street Amid Great Excitement. The Stock Market Very Strong and Active. GOLD 102 3-4 A 102 7-8. Government Bonds Firm, States Irreg lar par the and Railroads Higher. MONEY ON CALL 6 A 7 PER CENT. WALL STREET, MONDAY, Dec. 31-6 P. Messra. John Bonner & Co. tender the compliments of the season to their creditors in and out of the Board, and rogret their inability to fulal their engagemonts. Such was the tenor of the notice sent into the Stock Exchange this morning, and it required no supplemental R. S. V. P. to elicit a response from the interested parties referred to. Plainly, Messrs. John Bonner & Co. desired to intimate that, in a financial sense, they had "gone up," and invited their dupes 10 soar as speedily as possible in their track If they desired to save themselves. After the liberal Christmas box presented by Netter & Co. there would have been something wanting in the generous spirit so typical of the Stock Exchange had not some of its members followed suit by a tree distribution of New Year's étrennes. Messrs. Bonner & Co. saw the opportunity and seized it; seized it after the manner of Messrs. Netter & Co., with the same grip, after the same fashion and with the same intention to "collar and elbow" their confiding clients out of their hypothecated property. Badinage aside, Messrs. Bonner & Co., a long established, widely known and generally well respected house. notified the Board of their suspension this morning, under circumstances, as it subsequently appeared, absolutely analagous to those which attended the modus oper. andi of Netter & Co. Such, at least, was the belief that obtained and was widely spoken of in the street, and weight is to be given to the same by the fact that Messrs. Belden & Co. publicly advertised the stoppage of transfer of 1,000 shares of Union Pacific stock and of 300 shares of Lake Shore, while other parties pursued the same course in regard to other stocks. Beyond this some 9,000 shares of various stocks were bought in and sold out "Under the Rule," the defaulting firm being apparently thoroughly mixed as to the market, or, what is more probable, thoroughly indifferent as to its course, provided the grand object of realizing cash for the net value of pledged collaterals was obtained. Messrs. Bonner & Co.'s transactions were, however, farther reaching than the Netters', for whereas the latter were confined to private firms the former extended to at least one public institution. The Bankers and Brok. ers' Association, a chartered institution, possessed Mr. Bonner as president, and has gone down with him, to the grief of stockholders and depositors. The "affair" Netter and the "affair" Bonner (and French journalist would put it) are apparently 0 much alike as two peas in a pod, though at least good has grown out of the circumstance, in that illiberal reflection upon one creed has been neutralized by dereliction upon the part of another. Honors are easy, such as they are, and Jew and Gentile goid equal cards. The most remarkable matter is that in spite of these "mregularities," which ordinarily cld have produced a semi-panie upon Change, the market has been buoyant bevonit prededent. Lake hore was whirled up to 64% (Though it sold the close at 61½, ON dividend of ntji Michigan Central was carried to 65 (altar ropping to 61 ½), and the rest or the market showed itself strong, but without unusual excitement. The threatening aspect of foreign allairs, and the belief that an extraordinary demand for our breadstuffs will ensue in case of a general war, are used as arguments in favor of the Western roads, which alone can be re. lied upon to move the immense crops nearly as vet untouched. Consequently there is unlimited advic gratis to invest in the granger shares, and the most alluring promises are made as to their future values. A margin of 10 per cent placed in the hands of a respectable broker will test the value of these prog. nostications. As happened after last week's failure, money lenders, instead of money borrowers (as would seem naturally proper), took fright and advanced the rates for loans at one time to-day as high as ½ per cent and interest. Some disturbance. however, in the money market was to be expected from the culmination, at the end of the year, of time loans and the difficulty of replacing them except under pledge of government collaterals, and consequently a sharper twist than usual was not only natural, but to ba expected. OPENING, HIGHEST AND LOWEST. The following table shows the opening, highest and

3. January 3, 1878 The New York Herald New York, NY

Article from The New York Herald, January 3, 1878

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BONNER'S BORROWINGS. Where He Repledged His Securities and What He Got on Them. TWO MILLIONS IN THREE MONTHS. A Receiver Appointed for the Bankers and Brokers' Association. Pretty nearly the whole story of John Bonner's operations was told the first day of the failure. A full list of the securities Bonner repledged has been made out by the assignee, Mr. B. W. Griswold, and is given below. The amount toots up nearly $2,000,000, and the losses suffered by advances obtained on rehypoth. ecation are estimated at ten per cent of that sum. Of course, this is only a molety of the general loss. In nearly every lot, it will be noticed, some "B. and (Bankers and Brokers') stock was worked off. Mr. Arthur L Sewell, Bonner's partner, was at the firm's offices all day. In the morning he sent the following letter to the Stock Exchange:No. 32 BROAD STREET, Jan. 2, 1878. To EXCHANGE: THE PRESIDENT AND MEMBERS OF THE NEW YORK STOCK GENTLEMEN- In view of the transactions of the firm of John Bonner & Co., of which am member. beg leave to ask that committee of investigation be appointed to inquire into the affairs said firm, order that my relations with said firm and especially with the transact relating the rehypothecating of securities may be fully inquired into. have further to ask that the committee instructed to report as soon as possible. If. in order, beg that this letter be read the Board. L. ARTHUR SEWELL. A committee, such as Mr. Sewell asks for, was appointed on Monday, and the letter, when copy was abtained by the HERALD reporter in the afteruoon, had not been read in the Exchange. Mr. Sewell was before the Insolvency Committee of the Exchange for a while in the forenoon. Nothing is known of Mr. Bonner's whereabouts, and the report of his flight to Canada receives general belief. It was stated on the street yesterday that a warrant for his arrest would be applied for at the Tombs in the afternoon. It was ascertained yesterday that Bonner did not even pay for the little packageo underclothing be procured before leaving, having an open account with the dealer who sold him the goods. A RECEIVER FOR THE BANKERS AND BROKERS'. In the matter of the Bankers and Brokers' Association Mr. Robert L. Cutting, Jr., was appointed a temporary receiver. Bonner & Co. affairs have also got Into the courts, and an interesting question is raised by counsel for the general creditors. The public were cautioned against the negotiation of the following securities, all to the name of Stout & Thayer:-Rock Island-Nos. A, 26,420 and 26,421, 100 shares each; Wells, Fargo Co.-No. 4,352, fifty shares, and New Jersey Railroad, No. 8,571. Messrs. Trask & Stone warn the public against the negotiation of the following securities:-Southern Pacific Railroad of Missouri bonds, Nos. 3,307, 2,072, 789, 4,256, 3,200, 1,444, 2,421, 3,183, 2,950 and 3,186. THE REPLEDGED SECURITIES. Following is the statement of securities repledged by John Bonner & Co., the places where pledged and the amounts obtained on them:OCT. 2. Fourth National Bank, $50,000-100 Panama, 20,880: 5 St. Jo, per cent; 2 Sinking Fund, 15,532-533; 200 U. 38,853-854; 200 Wells-Fargo, 3,197-4 435; 200 Bankers and Brokers'; 100 St. Paul, 15,871. OCT. 10. -Contral Trust Company, $50,000-200 Bankers and Brokers': 150 Panama, 21,687-1,17150; 100 N. W. preferred, 10,341; 200 U. P., 44.544545; 100 A. and P. 2,040; 100 Western Union, 42,076: 100 U. S. Express. 777. OCT. Farmers' Loan and Trust Co., $50,000-200 U.P. 44,535-540; 100 Panama, 22,928; 100 N. W., 21,551 200 Bankers and Brokers'; 3 sinking fund, 16,534-5-6 100 Wells Fargo, 4,396; 7,000 St. Paul bonds; 4,000 Western Pacific bonds. Ocr. 12.-Central Trust Company, 000-200 Bank* ers and Brokers'; 500 Chi. and A., 815-1,05538,859-860. 1,056- 1,053-1,054; 3 Wabash bonds; 200 U. P., OCT. 24. -Shoe and Leather Bank, $50,000-100 B. and Q., 1878; 200 R. 26,420-421; 50 Wells, Fargo, 4,352: 100 N. J. R. R. 8,571; 100 U. P., 44,035; 200 Bankers and Brokers' Nov. 9. Phoenix Bank, $50,000-400 U. P., 41,128, 38,852; 200 Bankers and Brokers', 45,828, 44,541; 2 Wabash bonds; So. Pacific first. Nov. 9.-R. Sage, $50,000-400N. W. preferred. 14,123126; 500 N. W., 21,272-276; 500 Pacific Mail. Nov. 15 -Fourth National Bank, $50,000-1, 000 N. W. gold bonds; 1,000 Great Western 1st; 5,000 do. 2d; 000 N. Mo 1st; 27,000 So. Pacific 1st; 7 Wabash bonds (SL Louis division); 5 SL Joaquin Branch bonds; 3U. Pacific 1st; 3 Erie 4th N. W. cons. sinking lund; Cal. and Oregon 1st: Mo. Pacific 2d; 31 Wells Fargo, 4:487; 2U. P. sinking fund; 200 Bankers and Brokers'. Nov. 23. and Leather Bank, $50,000-300 N. W. preferred, 14,175-6-7 100 N. W., 1,538-543-533542-545-550 to 552; 100 Pacific Mail, 83,816; 1 Wabash. DEC. Union Bank, $50,000-200 Panama, 23,048, 22,948; 130 P., 44,287, 3,819-30; 300 C and A., 1,048. 200 odd shares; 100 Bankers and Brokers'. DEC. 5.--Bank of Commerce, $50,000-400 Panama, 22,927, Bankers 928, and 930, Brokers'. 436; 100 St. Paul, 15,668; 200 DEC. 8.-R. Sage, $50,000-100 L. S., 46,441; 400 St. Paul preferred, 11,657-11. 328- 100 St. Paul, 16 166; 100 N. W preferred, 15,177; 200 N.W. Wabash. 22,023, 21,875; 200 Bankers and Brokers'; DEC. National Bank, $50,000-200 Panama, 23,044-5 200 U. 38,855, 44,038; U. P. Sinking Fund, 15,544; 600 N. W., 21,539, 40, 541, 514. 534 and DEC. 18. -Broadway Bank, 000 Erie, 1st 200 N. W. preferred, 13,839-40; 500 L. S., 100 odd and 5,382 10 385; 200 Bankers and Brokers' 1U. P. Sinking Fund, 16,542. DEC. 19.-Russel Sage, $50,000-200 Western Union, 53,192 191: 200 W. 21,917, 20,744; 500 Pacific, 83,226-094, 224, 490; 300 U. P., 45,818-19 and 20; U. Sinking Fund. DEC. 20.-J. B. Tilford, Jr., & Co., $40,000, $2,500 paid on account-800 U. P., 38,857, 44,533, 548; 200 L. S., 47,487-8;- Wabash bond; 600 Pacific Mail, 84,878- 585-724, 725, 85,036. DEC. 20. B. Tillord, Jr., Co., $25,000-100 U. P. 44,034: 100 St. P. preferred, 12,187: 300 N. W. 20,718-21,680, 776; 300 Pacific Mail, 84,730, 134, 925. DEC. --Schafer Bros., 000. Western Union, 50,855-869; 1U. P. Sinking Fund, 15,549; 400 Paul, 16,172, 076, 15,127, 13,432; 200 Bankers Brokers and DEC 20.-St. Paul Railroad Co., $40,000 Western Union, 50, 749; Panama, 23,053-22,949. 931;3 U.P. Sinking Fund. DEC. 20.-Schater Bros, $25,000, gold-200 N. W. com., 21,536-7; 100 Panama, 23,046; 200 St. Jo. preferred, 923, 1,942; U. P. Sinking Fund, 15,545-6; 100 Bankers and Brokers'. DEC. 20. -Broadway Bank, $50,000 Chic. & A., odd; 100 Panama, 22,945; 200 P., 45,822 and3; 2 P. 1st; 200 Bankers and Brokers'. DEC 21 -Union Bank, $50,000-300 N. W. preferred, 14,256-7-8; 100 Wabash, 481; 200 U. P., 44,53945,815; 50 Metropolitan Bank, 1,454; 200 L. S., 46,898-899; 200 Bankers and Brokers'. DEC. 21. Eakin Adams & Co., $10,000-100 U. P., 38,856; do. Sinking Fund, 531,550; 100 Bankers Brokers. and DEC. 22.-Bank of Commerce, $50,000-400 Panama, 23,049-52; 100 N. W., 21,277; 200 Bankers and Brokers' Oct. 21 -Farmers' Loan and Trust Company, $50,000-S00 Panama, 2,437-439; 200 Bankers and Brokers'; 200 U. P., 45,030-31; 2 sinking 538. 15,537 fund, DEC. 24.-Laidiaw & Co., $50,000, gold-500 Western Union, 53,822, 50,750, 860-862; 200 N. W. proferred, 14,689-691; 300 Bankers and Brokers'. DEC. 26 -William Belden & Co., $50 000-50 R. L., odd; 50 N. W. preferred, 36,549; 100 L. S., 46,863; 200 U. P., 44,036-7: 400 Western Union, 54,103044-048, 52,892 DEC. 26.-F B. Wallace & Co., $50,000 gold-400 Western Union, 52,223, 54, 064, 53,976, 557; 100 Ohio, 16,101; Wabasa; 100 Erie, 13,282; 800 U. P., 44,256-42,174, 45,816 200 Bankers and Brokers', DEC. 26. -Jacob Berry, $25 000- 100 L. S., 47,089; 10 R. I., 5,691; 100 U. P., 45,825; 100 St. Paul, 16,095; 100 Bankers and Brokers'; 300 Pacific Mail, 85,171136-249; 25 N. W. preferred, 34,925; 1 U. P. Sink15,541. ing Fund, DEC. Eugene Kelly & Co. (No. 1), $50,000, gold400 U. P., 45,877, 817, 821; 100 Pacific Mail, 82,935; 100 N. W. preferred, 13, 760; 200 Ohio, 15,164. 13,952; 200 Bankers Brokers'

4. January 6, 1878 The New York Herald New York, NY

Article from The New York Herald, January 6, 1878

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BONNER'S FAILURE. SALE OF HYPOTHECATED SECURITIES AT AUCTION-THE BANKERS AND BROKERS' ASSOCIATION STOCK. Beyond the sale of some additional securities held as collaterals for loans advanced to John Bonner & Co. and the summoning of Mr. Sewell, his partner, before the Investigating Committee of the Stock Exchange there was nothing new respecting the Bonner failure on Wall street yesterday. SECURITIES AT AUCTION. Two of the auctioneers on the Real Estate Exchange offered stocks, bonds, &c., at public auction, on account of persons with whom they had been hypothecated by Bonner & Co., and the attendance of Wall street men and speculators looking for chances was quite large. D. M. Seaman sold the following securities on account of Moritz Myer, with whom they had been hypothecated by Mr. Bonner for a loan of $50,000 in gold:One Union Pacific sinking fund bond of $100 at 93½ 100 shares Panama Railroad stock, $100 each, at 109; 100 shares Chicago and Northwestern (common) Railroad, $100 each, at 34%; 100 shares Chicago, Milwaukee and St. Paul (common) Railroad Company, $100 each, at 36% 200 shares Chicago, Milwaukee and St. Paul (common) Railroad Company, $100 each, at 36; 300 shares Pacific Mail Steamship company, $100 each, at 21%; 300 shares Bankers and Brokers' Association, $100 each, for 26; 300 shares Union Pacitic Railroad Company, $100 each, at 64%. For the Bankers and Brokers' Association stock there was spirited bidding. Alter it had been started at $5 for the lot it was openly charged that a clique had been formed to buy up the stock so as to control the charter. The purchaser of the 300 shares Bankers and Brokers' Association was James Kitchen. The other sale was by A. H. Muiler, who refused to divulge the name of the party on whose account the sales were made. It was generally understood, Lowever, thatall the hypothecate securities were sold on account of some firm who had made advances to Bonner. The sales were as follows:$7,000 City of Cincinnati 7 3-10 per cent bonds, due 1802, accrued interest from. 1st January 101 last to be chafged to purchaser, at $15,000 City of Cincinnati 6 per cent gold bonds, 80 due 1906, interest May and November, al..... $3,500 United States 5-20's of 1867, coupons, at 105% $3,000 United States 5's of 1881, coupons, at.... 107 $1,500 United States 10-40's, coupons, at. $2,000 Missouri 6 per cent bonds, due 1888, interest January and July, at. 104½ 500 shares Western Union Telegraph Company (hypothecated), $100 each, 76% a 70% 200 shares Chicago and Northwestern Railway Company, preferred STOCK (nypothecated), $100 each, at 61% 100 shares Lake shore and Michigan Southern Railroad Company (nypothecated), $100 each, at 611/2° 100 shares Union Pacine Railroad Company (hypothecated). $100 each, at 64% 100 shares Chicago, Milwaukee and St. Paul Railroad Company, common stock (hypothecated), $100 each, at. 36½ 300 shares Pacific Mail Steamsnip Company (nypothecated). $100 each, at 21% 10 shares Caicago, Rock Island and Pacific Railroad Company (hypothecated), $100 each, at.. 99½ 25 shares Chicago and Northwestern Railway Company, preferred stock (hypothecated), $100 each, at 61% 300 shares Bankers and Brokers' Association, 50 .per cent paid (hypothecated), $100 each, for the lot. $33 $1,000 Union Pacific Railroad Company sinking fund bond (hypothecated), 94 $1,000 Wabash Railway Company funded debt 82 bond, due 1907 hypothecated). at $19,000 American gold (hypothecated), at. 102% $25,000 Anderson, Lebanon and St. Louis Railroad Company first mortgage 7 per cent gold bonds, due 1905, interest May 1 and November 1, coupon on from May 1, 1876, at (per bond).. $14 The snares of the Bankers and Brokers' Association were purchased by - Corbett. THE LEGAL PROCEEDINGS. A petition was presented to Judge Brady by Mr. Arnoux, on behalf of Attorney General Schoonmaker, in the suit of the People V8. the Bankers and Brokers' Association, for the appointment or a re. ceiver and the dissolution of the company. On account of a receiver having already been appointed, at the suit of the creditors, decision was reserved until Monday, when It will again be presented.

5. January 8, 1878 The New York Herald New York, NY

Article from The New York Herald, January 8, 1878

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BONNER'S AFFAIRS. SALE OF ADDITIONAL HYPOTHECATED SHARES AT AUCTION-BECEIVERSHIP OF BANKERS AND BROKERS' ASSOCIATION. The firm affairs of John Bonner & Co. have practically transferred themselves to the domain of the law. Below will be found noted some action in the courts as well as an account of hypothecated stocks sold. Albert H. Nicolay yesterday sold the following securities, a portion of which, it is understood, were hypothecated by John Bonner for loans made:$5,400 (9) Buffaio, New York and Erie Railroad Company first mortgage seven per cent bonds, due 1877; interest coupons payable June and December; December, 1877, coupon on (hypothecated) $600 each, at 103½ $3,600 (3) Buffaio, New York and Erie Railroad Company first mortgage seven per cent bonds. due 1877; interest coupons payable June and December; December, 1877, coupon on (hypothecated) $1,200 each, at 103½ $1,000 (1) Buffalo, New York and Erie Railroad Company first mortgage seven per cent bond, due 1877; interest coupons payable June and December; December, 1877, coupon on (hypothecated) at 1031/4 200 shares Chicago and Northwestern Railway Company; preferred stock (hypothecated) $100 each, at. 63 1/4 500 shares Lake Shore and Michigan Southern Railway Company (hypothecated) $100 each, at 63½ 200 shares Bankers and Brokers' Association (hypothecated) $100 each, at, for the lot $32 $1,000 Union Pacific Railroad Company eight per cent sinking fund bond, dated 1873, due 1893; interest March and September (hypothecated) at 93% 322 shares Chicago and Alton Railroad Company 77 (hypothecated), $100 each 100 shares Panama Railroad Company (hypothecated). $100 each 115% -200 shares Union Pacific Railroad Company (hypothecated), $100 each 65 $2,000 Union Pacific Railroad Company first mortgage six per cent bonds; interest coupons payable January and July; January, 1878, 107 coupon on (hypothecated), $1,000 each 200 shares Bankers and Brokers' Association (hypothecated), $100 each, for the lot $41 $1,100 St. Joseph and Pacific Railroad Company first mortgage seven per cent bond; interest coupons payable January and July principal due January 1, 1905 7½ $300 Kansas and Nebraska Railway Company first mortgage seven per cent bonds; interest coupons payable January and July; principal dueJanuary 1, 1905, $100 each 73/4 20 shares City Fire Insurance Company of New York. Capital $250,000. Surplus over $192,000. $70 each 140 41 shares Ruigers Fire Insurance Company of New York. $25 each 170 400 shares Webster Petroleum Company; 1,000 shares First National Petroleum Company; 6,000 shares Forrest County Oil Company 945 shares Adamantine Oil Company; 200 shares Gold Mining Company of Colorado; 100 shares Albin Gold Company of Colorado; 5,000 shares Perry and People's Silver Mining Company of Nevada; 100 shares People's Gold and Silver of San Francisco; 1,000 shares Denbo Mining Company of New York, and 500 shares Columbian Coal Company 01 New York. Per share.. 1c. BANKERS AND BROKERS' ASSOCIATION. The matter of the receivership of the Bankers and Brokers' Association was before Judge Brady, in the Supreme Court, yesterday. As already stated in the HERALD, the suit in which the appointment of a receiver became a question was brought by a Mr. Smith, a creditor of the association, and Mr. Robert L. Cutting was named as receiver. On the motion yesterday, which was to approve the bond of the receiver, the creditor who had instituted the suit was represented by Mr. John A. C. Gray. some of the stockholders by Mr. John McKeon and the Attorney General, and certain creditors by Mr. William Henry Arnoux. The last named counsel appeared to oppose the approval of Mr. Cutting's bond, and this he aid by filing an affidavit to the effect that Mr. Cutting was the owner of 200 shares of the association's stock. Being thus a stockbolder, and one who denies his liability, Mr. Arnoux contended that he was not a fit person to be made the custodian of the association's assets. He also claimed that the motion could not be made on behalf of a creditor without six days previous notice. Counsel in lavor of the motion contended that the notice had been waived by the corporation and a majority of the creditors who desired Mr. Cutting's appointment. The Judge reserved his decision.

6. May 23, 1878 The New York Herald New York, NY

Article from The New York Herald, May 23, 1878

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BUSINESS TROUBLES. PETITIONS FILED AND ADJUDICATIONS IN BANKRUPTCY-EMBARRASSED FIRMS. Charks Griessman, Isaac Hoffman and Joseph Griessman, composing the late firm of Griessman Brothers & Hoffman, wholesale dealers in clothing, of No. 39 White street, have been adjudicated bankrupts on the petition 01 the two first named partners, and the case has been referred to Register Dayton, who has called a meeting of the creditors, to be held on June 25. The liabilities amount to about $150,000, of which the following are the principal creditors included in the schedules:-Lehman Brothers, $11,962 50; Puted & Bermheimer, $11,006 08; S. M. & B. Cohen & Co., $9,164; David Levi, $7,975; Herman Brothers & Co., $5,916 27; Samuel Seim & Co., $2,698 13; Siegel Brothers & Co., $2,602 34; Sigman Brothers, $4,774 13; Adolph Griessman, $2,383 94; Schnabel Brothers, $2,939 66; Ado'ph Schuster, $2,363 64; Felix Thurman, $5,461 24; J. Strauss, Brother & Co., $3,995 91; A. Friedman & Co., $3,311 62; William Heller & Co., $7,390; Sturzberg & Co., $4,486 73; Josephtbal Brothers, $2,486 03; Spaulding, Swit & Co., $7,079 55; Sulzbacher, Gitterman & Wedeles, $7,237 83. There are no assets mentioned in the schedules. A petition in bankruptcy has been filed against Cornelius O'Reilly, builder, of No. 115 East Fortyfourth street, by SIX creditors, whose claims aggregate $3,893, the largest being the following:-John Delaney, $1,697; Terence Griffin, $600; C. Berry, $570; Wilham Delaney, $500. Gustavus Frank, of No. 331 East Seventy-seventh street, has been adjudicated an involuntary backrupt on the petition of Samuel Strauss, who has a claim for $325, and an injunction has been granted restraining him from disposing of his property. The case has been referred 10 Register Dwight to take further proceedings. A petition in bankruptcy has been filed against Abraham Strasburger, jewelry, of No. 240 West Twentyfourth street, by four creditors, whose claims aggregate $5,383, as follows:-\ D. Stern, $1,800; L. Strasburger & Co., $1,683; Daniel M. Stern, $1,000; Block Brothers, $900. The creditors 01 John Fettretch are endeavoring to throw him into bankruptcy, and a petition for that purpose has been nied by five creditors, having claims amounting to $2,565, and the matter of adjuntcation will be heard on the 25th inst. The claims of the petitioning creditors are as follows:-S. A. Murphy, $800; E. H. Purdy, $685; Lizzie Colton, $500; W. Jackson & Son, $305; John Heeny, $275. VOLUNTARY BANKRUPTS. James Rice, dealer as silverware at No. 513 Broadway and at No. 81 Reade street, has gone into voluntary bankrupicy, before Register Little. His liabilities amount to about $119,500, nearly all of which are on DOLES either made or indorsed by the firm of Bray & Rice. The largest creditor is the National State Bank of Elizabeth, N. J., whose claim appears in the schedules for $106,024 41 on filty-three notes, made or indorsed by Line above mentioned Brm. Among the other creditors are the Yale National Bank of New Haven, $1,913 50; Brookly Bank, $1,650; N. Gridley & Son, $1,817 18; Lenign Iron Company, $1,413 37. He bas no assets. Dwight P. ous, manufacturer of planos at No. 209 East Nineteenth street, has been adjudicated a voluntary bankrupt on his own etit on by Register Dwight. His liabilities amount to about $25,000, and the assets consist of casb, $10; stock and axtures, $3, 100; promissory notes, $825; book accounts, $1,500; claims, $210, and a patent for improvement in pianos, which he claims 18 of no value. Among the creditors are the following: F. Herkner, $4,903 57 William F. Chittenden, $3,085; Mrs. M. J. Otis, $3,026 33; Clair & Minton, $2,023 07, nability as indorser; Daniel P. Ous, $2,000; A. G. Stade, $1,407 27: The city has a claim for taxes, out the amount 18 not mentioned in the schedules, and there are priority debts amounting to $335. MEETING OF CREDIRORS. A meeting ot the creditors of Arthur L. Sewell, of the late firm of John Bonner & Co., backers and brokers at No. 32 Broad street, Was held yesterday at the office of Register Little. Two claims were proved by Robert L. Cutting, Jr,, as receiver 01 the Bankers and Brokers' Association for $484,608 84, and by William R. Gould & Co. for $21,432 68. Mr. Burr W. Griswold was nominated for assignee in baukruptcy, but there was no choice, and John H. Platt was appointed assignee. Ata meeting of the creditors or Matthew Byrnes, Jr., builder, neld yesterday at the office of Register Little, schedules were presented showing liabilities amounting to $100,000, out no claims were filed, and John H. Platt was appointed assignee. The creditors of James Hennessy, dealer in shoes at No. 89 Nassau street, met at the office of Register Dwight and accepted composition of twenty Cents on the dollar in notes at four and eight months on liabilities of $2,161 56. Register Dayton yesterday called meetings of creditems of Joseph A. Keeting for July and of John O'Conor for June 26. Register Dwignt has designated June 26 for the meeting of the creditors of Rhodes & Server. A meeting of the creditors of Warren A. Ransom & Co., wholesale dealers in stoves at No. 537 Broadway, was held yesterday at the office of Register Allen. The firm presented an offer for u composition at forty cents on the dollar in notes at three, SIX, nine and welve months, and its consideration was postponed untilJune6. The creditors then proceeded to elect an assignee in bankruptcy to take care of the estate, and Mr. William A. Hall, of the firm of Benedict, Hall & Co., was chosen. Seventy-twe claims were proved, aggregating about $300,000. The creditors of Henry S. Welles, contractor, of No. 70 Cedar street, held a meeting yesterday at the office of Register Dwight. The bankrupt submitted an offer of composition at five cents on the collar cash, and its consideration was postponed for three weeks. Eight claims were proved, aggregating $115,000. A meeting of the creditors of Charles Morrill & Sons, manufacturers of hardware at No 556 Grand street. was held yesterday alternoon at the rooms of the Hardware Board of Trade, Nos. 4 and 6 Warren street. Mr. Hall, of Cooper, Hewitt & Co., presided, and Mr. J. H. Goldey was chosen secretary. Mr. Charles Merrill read a statement to the meeting showIng the merchandise liabilities to be $72,000 and the assets, including stock, machinery, &c, wore valued at $12,500. The equity in the - estate was stated to be merely nominal A committee of three, consisting of J. R. Halsey, of the Oriental Bank: Charles M. Joyce, of Demorest & Joyce, and G. I. Potten, of Brooklyn, was appointed to examine into the adairs of the firm and authorized and requested to call upon the Committee of Business Failures of the Hardware Board of Trade to co-operate WILD them. The meeting anjourned subject to the call of the committee. ASSIGNMENTS Jacob Hyman & Co., dealers in fancy paper and card stock, at No. 29 Beekman street, made an RSsignment for the benefit of their creditors yesterday to Daniel Miller. The senior partner nas been in business for many years, and Mr. Charles Exchand was admitted to the firm about two years ago. Up to March, 1870, the firm was Hyman & Straugs, and then 11 became Hyman, Carpenter & Co. They Dave had good credit and their inabilities are reported at about $25,000; they have good assets consisting mainly of BLOCK and DOOK accounts. N. L. Burdick & Brother, packing boxes, at No. 117 Prince street, made an assignment yesterday for the benefit of their creditors to Edward H. Bailey. They have been in business for over ten years. On the 20th inst. a chattel mortgage for $4,000 on Extures Was filed to J. Cameron William Rodh, importer of laces, at No. 536 Broadway, made au assignment to W. H. Stiner yesterday for the benefit of his cr ditors. He was formerly of the firm of Rodh & Bocker, which was dissolved in 1875

7. November 2, 1878 The New York Herald New York, NY

Article from The New York Herald, November 2, 1878

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SUMMARY OF LAW CASES. Judge Donobue yesterday granted a temporary in. junction restraining Charles Mumford, J. D. Vale and the American Literary Bureau from giving further entertainments at Cooper Institute before taking ous a theatrical license. Isaac Boas, u mere boy, was brought before the United States Commissioner yesterday, charged with defrauding the revenue by packing cigars in old boxes the stamps on which had already done duty. He was held in default of $250 to await examination. The Supreme Court, General Term, in the suit of The People VS. Lowenbeia Judge Donobue has decided that the Marine Court is a court of record, having been made such under a recent act of the Legislature. Judge Potter wrote the opinion in the case. in the suit brought by Jacob W. Long and Peter Lury against the city for salary respectively as Alder. man and Assistant Alderman after the old Boards had been legislated out of existence, the Supreme Court, General Term, has affirmed the judgment of the Court below in favor of the city. Writs 01 certiorari and habeas corpus were yesterday granted by Judge Donohue on application of Mr. William F. Howe, 10 the case of Dr. Oriando E. Bradlord, committed in delault of $5,000 bail on a charge of being implicated in the death, by alleged malpractice, of Vicky Conners. The write were made return. able this morning 10 Supreme Court, Chambers. There was tried yesterday, before Judge Van Vorst, at Supreme Court, Special Term, suits brought by Robert L. Cutting, Jr., receiver of the Bankers and Brokers' Association, against Thomas S. Marior and William Herschel, growing out or the old story of Bon. ner's rehypothecations. It 18 claimed that, the association having allowed Bonner to take the collaterals, the suit cannot be maintained. Judge Van Vorsi re served his decision. In the case of Gustavus Abbott, the Boston merchant convicted at the last February term of the Court of Gen. eral Sessions of obtaining goods through lalse representations, and sentenced to the State Prison for three years, the Supreme Court, General Term, has affirmed the judgment. Following this decision. Mr. William F. Kinizing, counsel for Abbott, applied yesteruay to Judge Donohue for a writ 01 error, to allow the case to be carried to the Court of Appeals for final review. The application was granted, and the case will probably come up for a hearing ou the reassembling of the latter court ou the 11th inst. UNITED STATES SUPREME COURT. WASHINGTON, Nov. 1, 1878. Isanc C. Collins, of Cincinnati, was admitted " practice. No. 51. Harlow Barney vs. J. N. Dolph.-Argument commenced. No. 52. J. E. Stacey VS. G. W. Emerg.-Submitted by R. McP. Smith for claimant, E. B. Smith lor the This cause, from the Middle district of the Tennessee, government. presents question whether a certificate of probable cause will protect the revenue otlicers in an action lor a seizure with malicious intent No. 53. James M. Pettigrew vs. The United States.Argument by Frayser, Humes & Poston for plaintiff, E. B. Smith for the government. The question in this case, from the Western district of Tennessee, 18 as to the proper action to enforce a forfeiture of to. bacco where the goods have passed into the hands st commission mercuants or sale. No. 55. Hugo Seitz and Carl Breidbach vs. The United States.-Argument by S. G. Clarke for the plaintifis, E. B. Smith for the government. This cause was from the Southern district of New York, and the main question IS whether it 18 too late, alter issue on the pleadings in a case of seizure under the customs laws, to set up want of jurisdiction in the court. No. 54. George Hill, Jr., vs. Farmers and Mechanics' National Bank of Georgetown, D. C.-Submitted by C. M. Mathews for appellee, appellant not appeared Adjourned till Monday at twelve o'clock.

8. December 24, 1878 The New York Herald New York, NY

Article from The New York Herald, December 24, 1878

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NOBODY WANTS IT. R. L. Cutting, Jr., appointed receiver of the Bankers and Brokers' Association at the suit of Henry B. Smith and another, advertised that he would yesterday sell to the highest bidder. at the Stock Exchange (to quote the words of the legal notice), "7,795 shares of the capital stock of the said Bankers and Brokers' Association, the same having been forfeited for non-payment of assessment levied by me. The par value of each share is $100. The authorized issue is 10,000 shares, on which $50 per share has been paid. An assessment of $30 is due on each share, and the shares will be sold for cash. subject to the payment by the purchaser of said assessment and all liabilities imposed thereon by law." When the gong of the Exchange called the auctioneers to their stands but two persons other than the receiver and his auctioneer presented themselves, and the sale was adjourned until a later date.

9. December 29, 1878 The New York Herald New York, NY

Article from The New York Herald, December 29, 1878

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CITY NEWS ITEMS. The police made 1,274 arrests last week. Four hundred and seven emigrants arrived at Castle Garden last week. Sophie Marshal, nineteen years old and residing at No. 31 Oliver street, was badly burned yesterday by her clothes taking fire from a grate. The employés of the Metropolitan Elevated Railroad intend to give their first invitation ball at Tammany Hall on the evening of January 10, 1879. Martin Rensburg was held in $500 bail by Judge Murray, at the Tombs Police Court yesterday, charged with having violated the Lottery law. Dr. Newton Whitehead, who was committed to the Tombs a few days ago on a charge of malpractice, was yesterday released upon furnishing $5,000 bail. Andrew Cullen, of No. 407 East Twelfth street, was removed to Bellevue Hospital yesterday, suffering from burns received on Christmas Day by falling on a stove. His injuries are thought to be serious. Mr. W. S. Andrews delivered his lecture on "Our Humorists" last evening to a large audience, in the great hall of Cooper Institute. The lecture, which has been delivered before, was a comparison of American with foreign humorists. The funeral of Warren C. Baxter. the grain merchant and member of the Produce Exchange, who died on Friday, will take place to-morrow from his late residence, No. 66 West Fortieth street. His remains will be taken to Tarrytown for interment. The adjourned sale of 7,795 shares of the defunct Bankers and Brokers' Association set for yesterday by R. L. Cutting, Jr., receiver, attracted few persons to the Real Estate Exchange. As there is an assessment of $30 per share on the stock not a single bid was made for any of the shares. Max Franken, twenty-eight years of age, of No. 607 Third avenue, an outdoor salesman in the employ of William Schiff. a shoe manufacturer. was held in default of $1,000 bail in the Fifty-seventh Street Court yesterday. charged with having obtained goods from his employer under false pretences. Coroner Croker yesterday took the testimony of a number of witnesses in the case of John Regallia, the Italian who was murdered on Christmas eve at No. 16 Baxter street. John Giovanni. who is suspected of the crime, was not placed on the stand, and the case was adjourned until Monday morning next. The annual meeting of the Old Guard will be heldat the headquarters. No. 211 Fourth avenue, next Thursday evening, when the election for officers will be held. At this meeting arrangements will be made for the forthcoming ball. to be given in the Academy of Music by the Old Guard on tue night of January 23. The officers connected with the Special Agents, Bureau seized 1,000 cigars on board of the steamer Rio de Janeiro yesterday. Twenty-five cases of brandy from the steamer Wisconsin and one cask of brandy and one case of cigars from the steamer Harold were sent to the seizure room as illegal importations. Philip Marks, the tailor who claims that he was beaten in "Billy" McGlory's saloon on the 8th inst. and afterward foreibly detained at No. 1,131 Third avenue, was discharged from Roosevelt Hospital yesterday and taken to the Fifty-seventh Street Court. Judge Bixby sent him thence to the House of Detention to be held as a witness. A Christmas festival was held last evening at the Eighth Ward Mission School, in Ludlow place. A number of Christmas carols were sung by the children and an address was delivered by Dr. Danford. The mission was established in September, with ten children, and now numbers forty-two. It is said to be a great benefit to the neighborhood. A respectably dressed young man, giving his name as John Rogers, residing at No. 400 West Fourteenth street, was arraigned in the Tombs Police Court yesterday, charged with obtaining by trick and device a camel's hair shawl, valued at $300, from A. T. Stewart & Co. The shawl was recovered in a Bowery pawnshop. The prisoner was held in $2,000 bail. Ralph Hill, a dealer in velvet picture frames at No. 645 Broadway, was yesterday arrested and confined in Ludlow Street Jail. in default of $14,000 bail, on an order issued by Judge Freedman, of the Superior Court, He is charged in the affidavit with having received and appropriated about $14,000 worth of silk velvet stolen from Arnold, Constable & Co. by Edwin K. Matthewson. On the Real Estate Exchange yesterday there was offered for sale the assets of Griffith Howe, a bankrupt speculator in real estate. The property consisted of several acres of real estate in and near New York, which is heavily encumbered, and claims and book accounts. The amount realized on the sale (the purchasers assuming all incumbrances on the real estate) was only $7,250. It was reported on Wall street yesterday that the Philadelphia and Reading Railroad had disposed of some of its collieries to the Lehigh Valley Coal Company, the value of which was estimated at $1,000,000. The officers of the Reading Railroad Company denied that any of their property had been sold to the Lehigh Valley Company, and the representative of the latter corporation corroborated their denial. Nearly all the Wall street banks will pay out gold at par to any of their customers who ask for it. The First National Bank has been paying it out in large

10. January 23, 1879 The New York Herald New York, NY

Article from The New York Herald, January 23, 1879

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# BONNER REHYPOTHECATIONS. A decision was given yesterday by Judge Van Vorst, in the suit tried before him at Special Term of the Supreme Court, brought by Robert L. Cutting as receiver of the Bankers and Brokers' Association, against Thomas S. Marloe to recover $6,000 loaned to him by the association, the facts of which have been published. "I conclude," says Judge Van Vorst, after summarizing the facts, "that a system of management of a banking house in which such conduct of its affairs was permitted was a breach of duty and grossly negligent toward its dealers and persons having stocks and bonds in its keeping. It does not appear that the trustees took any sustantial oversight of the affairs of the association, or devised any measures for the safe keeping of its property. They did not hold meetings, as required by the bylaws. If summoned to attend they did not appear. No periodical examination of the securities appears to have been made by any committee. Ordinary circumspection and safeguards were not interposed for the protection of the property of the association or of its depositors and dealers, and Bonner's license to do as he chose without accountability seemed unlimited. The legitimate outcome of such license was ruin to Bonner and the association and loss to depositors and stockholders. It is urged in behalf of the association and Bonner in justification of the confidence and power reposed in him that he was, up to his failure, a man of good character. But it should not be allowed to any man, however good he may seem to be, to be tempted with power and property in this way. The stock and property of the association so readily acquired was the aliment by which his appetite for speculation was fed, and through which his ruin was probably hastened. A banking association, with the powers and privileges of the one under consideration, is under a duty to adopt rules and regulations and so to conduct its business as that property in-trusted to its safe keeping should be reasonably protected against misapplication by its servants and agents. An omission to adopt and enforce prudent rules in this regard is a failure of duty toward its dealers and is blamable negligence." Judge Van Vorst, in conclusion, holds that the association is liable for the acts of Bonner, and gives judgment for the defendant for the value of his securities above the amount of his loan, to be payable out of any assets the plaintiff may have in his possession as receiver.

11. November 14, 1879 New-York Tribune New York, NY

Article from New-York Tribune, November 14, 1879

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# A RESULT OF JOHN BONNER'S FRAUDS. Robert L. Cutting, jr., receiver of the insolvent Bankers and Brokers' Association, sued W. G. Damerel in the Supreme Court for the amount claimed to be due from the defendant to meet his proportion of the debts of the association. The association suspended business December 31, 1877. Its capital stock was $1,000,000, divided into 10,000 shares. The defendant owned ten shares, on each of which $50 had been paid. To meet the indebtedness of the association a further assessment of $30 is made upon each share; Judgment was therefore demanded for $300. The defendant put in a counter claim of $300 for dividends alleged to have been declared but not paid. The case was tried before Justice Barrett in Circuit Wednesday. Evidence was introduced to show that in 1870 Mr. Damerel had transferred his stock to John Bonner & Co., and that Mr. Bonner, then the president of the association, had directed the secretary not to indicate the transfer on their books. A motion was made for a verdict in favor of the defendant, on the ground that the association, having sufficient information of the transfer by the knowledge of its president, was estopped now from bringing the action against Mr. Damerel. The motion was granted