The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-17
GILLIG'S EXCHANGE.
The Fall Of a Famous Institution.
It's Limited Liabilities and It's Doubt
~ full Assets.
Said to Hold Four Millions in Let
ters of Credit.
Stockholders About to Be Led a
Merry Dance.
Tourists May Have to Walk-Gillig Was
Fond of Notabilities Like Blaine
and Ballet Girls-Senator
Hawley's Statement.

A cable dispatch from London announced
that the American Exchange in Europe,
limited, had passed into the hands OF
provisional liquidator, who had seized all
the effects of the concern.
While the news was flashing across the
ocean ce.President and General Mana
ger Henry I. Gillig, who has attained con-
siderable notoriety of late in connection
with the affairs of the exchange, made an
!, application before Judge Lacombe in the
United States circuit court for receiver
for the New York branch. Judge La
combe granted the application ana APP
pointed Or. w. G. Boone.
Mr.. Gillig in his affidavit says that he is
the holder Of 1000 shares OF the Ameri-
can Exchange in Europe, and that he be-
lieves the exchange is insolvent and una
bic TO meet its obligations. That he had
received yesterday morning advices from
London that Arthur Cooper had been APP
pointed the hquidator OF the exchange by
the high Court OF chanccry, and that Mr.
Cooper hsd seized all the property Of the
said exchange. Mr.. Gillig, therefore,
prayed that W. G. Boone, Of the New
York branch, should be appointed re-
ceiver, TO take charge Of the property
within the jurisdiction OF this court.
Judge Iacombe also granted a restrain
ing order preventing any stockholders
from interfering in any way with the af-
fairs Of the exchange.
Mr.. Boone was directed 10 file penal
bond OF $4,000 with the clerk OF the
court. q. Carlton Comstock appeared for
Mr. Gillig, and Sullivan & Cromwell for
the American exchange.
Mr. William n. Cromwell said ycster-
day: "The duty OF the provisional liqui-
dntor appointed this morning in London
Is TO hold the property until II is deter
mined whether or not permanent receiv-
crship should be established. To look
after the property in New York Mr.. w. G.
Boone has been appointed by Judge La
combe. lie was once secretary OF the ex-
change, and was recently treasurer OF the
Dayton, Fort Wayne & Chicago Railroad
company. His appointment was recon-
mended by Brown Brothers * Co., Surro-
gntc Ransom, William II. Camp, and DON
mel, lawson & Simpson"
Mr.. Boone was closely associated with
Henry s. Ives K Co. when that firm was
making a streak like a sykrocket.
Continuing, Mr.. Cromwell said: 1.-THE
head Office OF the exchange Is in London.
There are branches IN Berlin, Liverpool
and Paris a. well rs in New York, and
there are correspondents in $500 cities all
over the world. The business OF issuing
letters OF credit was very large, and the liza
bilities, which amount 20 about g, 900, 600,
are mainly to depositors, but they will be
paid In full. The stockholders, however,
will lose "
''Can You name some Of them?"
"WclI, can tell you that in 1873 the
company was recognized with capital OF
$1,000, 600. OF which $500, 900 was paid up,
and that many Americans put In their
money, including the following gentle
men, who are the present officers OF the
exchange: Senator Joseph. X Iawlcy, OF
Connecticut, president; Henry i. Gillig,
vice-prcsidcnt and general manager, aud
these four trustees II. $. Hyde, president
OF the Agawana National bank, OF Spring
field, Mass; ox-Congrcssman w. w.
Grape, Of New Bedford, Mass; ex-SccTe-
tary OF the Treasury William Window, and
J. 4. Carroll, president OF the Peoples
bank, OF Baltimore. The president and
trustees are men OF the very highest stand
ing, financially and otherwise, and until
Mr.. Gillig was subjected TO the recent at
tacks 20 which the newspapers gave 10 much
space the exchange enjoyed credit con-
fdence.
''AIr. Gillig attributes the failure TO n
breach OF agreement by parties 10 whom
ho recently sold tile. bulk Of his stock at n
sacrifice In order 10 secure their aid and
cooperation. They failed 10 keep their
promises, and Mr. Gillig thought Il best 10
settle up the ailairs Of the corporation be-
foro its troubles got beyond remedy"
Mr.. Gillig was nj the Office Of the OK
away before the news came from London
and did not return.
As soon M he was appointed custodian
Of tho property Mr.. Boone locked up the
books.
Tho parties referred 10 by Mr.. Cromwell
ns breaking their agreement with Mr.. Gillig
are probably thdoe composing the syndi.
cate, said 10 have been headed by Mr..
Rowland N. llazanl, Of the American
Loan Trust company, which was 10 adj
vance Mr. Gillig $4,000 on his stock. Mr..
Hazard denies that he ever had any inicn-
ton OF advancing this money.
III A former officer Of the New York branch
Of the exchange said that TWAS formed In
II 1880, under tho English limited liability
act with a capital Of S5,0OO,OOO. The
stockholders were mostly Americans, but
there we're also few Englishmen. The
NI.Amtflcan IACnhnfc w tuFupct hhhit'i
b. the new concern was called, succeeded
b. the business Of Henry I. Gillig 4 CO.,
s'ho had built up baggage transfer aud
fcneral utility agency Tor travellers on the
hrhes Of the firm Of Bowlcs Brothers, the
american bankers.
This gentleman, who had an intimate
knowledge Of the business Of the exchange,
said: "fherc really was about $3.50. 900 in
eash paid In. The business Of Gillig 4
10. was valued at $500, 600, but Il consisted
n ,ncipally OF bad debts.
In 1.-The Paris office was distinct corpora
iion from the London and New York Of
bees, although Gillig was president Of Il
Y think assets that the receiver fnd'
'-4ill be principally the Office furniture
knches, q little bric.a.bac, a few old gum
- several hundred bags Of coffee: ellis
IN $4,000 year entertaining In ordel
1ooltnct business don't think Their
h&1<bcen any crooked business in thu
nl@rrgcment Of the funds, but Il is n cas-
a ~ business Judgment, bad loans an'