New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-07-29
ASSETS NOT AVAILABLE.
MR. JOHNSTON ASKS FOR AN EXTENSION.

Rumors have been in circulation for several
days that the big dry goods house of j. & c. Johns
ton, Of which Robert Johnston is sole
proprietor, at Broadway, Ffth-avc, and
Tweuty-second-st., WAS temporarily cmbar-
raised for ready money, that bills
were overdue and some creditors were pressing for
the payment Of their claims. The recent failure
Of L. NJ. Bates tended to increase the lack of
confidence in the trade, and some of the creditors
of J. & c. Johnston put their claims in the hands
of lawyers for collection and suits were threatened
One lawyer said that he had claim for collection
amounting TO only about $500, and had been
promised payment in day or two.
Bradstrects yesterday sent notice to their sub
scribers that Mr.. Johnston had presented state
mcnt TO his creditors upon which he has asked
and obtained an extension upon nearly 100000
of merchandise Indebtedness payable October l.
10, 20 and so with interest He claims
stock Of 100000 and outstanding accounts Of
100000. The creditors have freely granted the
extension and believe him solvent in any event.
He is now making efforts 10 secure partner
CREDITORS WILLING TO PLEASE
Mr.. Johnston, when asked yesterday about the
matter, declined TO say anything at all, but re-
feritd the reporter to his attorney, William A
Butler. At the lattcrs office, No. 81 Wall-st,
the reporter was informed that Mr. Butler had
gone out of town, and no one in the office would
say anything in regard TO MIR. Johnston's affairs
In the trade yesterday it was said that the credit
ors whose bills now due were only asked to
sign the extension, which they had readily done.
Creditors whose bills were not due were not asked
TO grant an extension but they expected to follow
q similar course when their bills matured. 1t was
said that Mr.. Johnston expected to be able to buy
for cash between now and October L. 1t was also
said that his stock alone at lowest valuation was
enough to pay all his Indebtedness leaving out
outstanding accounts, real estate, fixtures etc.
His temporary troubles attributed to duh
trade, shrnxage in values Of stock, inability to
mako collections from book customers, and press
ure of few creditors for their money 1t was the
general opinion in the trade that there was no
serious trouble in his affairs, that he only asked
an extension of the most pressing claims, and
that by obtaining it he would be tided over the
dull months of August and September, and be ready
to take advantage OF the fall trade.
SKETCH OF TIE FIRM.
The business was begun in 1864 by John and
Charles Johnston under the style of j. IL Z.
Johnston which has been maintained ever since.
The brothers begun with $4,000 capital part
of which was borrowed. They had been for
several years previously in the employ Of the
we'll known dry goods firm Of Ubsdcll, Person d
Lake, where they received good business edu-
cation. They were successful as Il firm, their
business career being marked by thrift, energy
and able management From the small capital
with which they started they amaSsed fortune
of nearly sl,25O,OO0 IN ten years. Both the
brothers were bachelors. They started at Broad
way and Nnth-st., where they renamed about
nine years, removing in 1873 TO the present
large store at Broadway, Fifthave and Twenty
second-st. Charles Johnston died in May, 1880,
leaving his whole estate valued at 100000, to
his brother john who continued the business alone
until his death. May 6, sS7, when he left his
entire estate to his brother Robert. 1t was fire.
Guently mentioned in the trade as a curious cir
cumstarcc connected with the business, that
Charles died a bachelor leaving all his estate 10
brother, john and when the latter died his
entire estate was left to another brother, Robert
The latter had been for years with his brothers
as an employc and had an interest IN the profits.
The will Of John Johnston, making Robert his sole
heir and executor admitted to probate after
O contest before the Surrogate. The estate was
then valued at over S1,500.000. Robert had
claimed to be worth personally over $500, 900 be-
fore his brother died
STARTING BRANCH STORE IN ALBANY.
John Johnston. with Mr.. Reilly. in October,
1873 started branch store in Albany the for
mer contributing $4,000 600 capital and the latter
$4,000. This business sold out by Robert
Johnston early this year. Robert also bought
out the interest Of Mrs NJ A. Garretson, Of Phila-
delphia. in the Newlork business for 81 25, 900,
giving her notes which had three years TO pay,
secured by real estate. The lady an old friend
of the family who loaned the brothers money
when they started in business, and she had an IN
te-est in the profits of the old firm Of j. & G.
Johnston. While john Johnston was alive, it is
said, all the goods that he could buy were sold
to him without question: he was quoted IN the
highest credit and did large and profitable bust
ness. After his death payments became slow, and
Robert claimed that it was caused ~ troubles in
cident upon settling his brothers affairs. This
cd coD1a Inf fba
OF the house was not questioned Last summer
and fall the trade did not seem to like his slow
ness, and he stated to Bradstreet's' in August
last: |" 1 know am slow pay, but don't owe
any very much, only few hundreds one
or two thousand dollars at the most and will posi-
lively pay all in n week or two. My accounts
all good, but can't collect as my customers
away in the country, and we are not selling
many goods TO bring in money In June owed
$4,000 and have paid all my foreign accounts,
thus reducing my Indebtedness verysmuch.' lie
continued to be quoted as slow pay, and
j. was the talk Of dror the ,t trade Suits
collect bills against him; In February last
"Brodstrccrs" withdrew his means rating and re-
duccd his. credit rating TO good The house had
very highest credit Mr.. Johnston's last detailed
statement 70 the agency showed his condition on
January ID, SSS, as follows;
Assets-Cash. So 025; account: outstanding ss0,oo7
AsTy accounts gss oO' i,os furniture bills
$500 house $4,000
s G Sp S chapel Tc sSg 5S
Labilit.es.Due for merchandise. 100000; notes to
bank. S05,Co0; to Mrs Garrcts0n. sl30 000 Total
$500 o0. Surplus. s1.042.o G1.
During brief subsequent interview last night.
upon his return from Riverside, Mr. Johnston
insisted that the whole matter was an insignificant
one, considered from a commercial point of view
Ready money had happened TO be unava lablc for
the time being, and an extension had been asked
in order TO gain an opportunity TO convert other
property into cash. The solidity of the firm was
in nc, way affected, and business would be CON
tinued just the same as heretofore The whole
difficulty resolved itself simply into question of
temporary inconvenience, which could be easily
overcome. Further than this Mr.. Johnston would
say nothing.
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