New-York tribune., 1888-04-14
LITTLE CHANCE FOR GILLIG.
A RECEIVER NAMED FOR HIS EXCHANGE.
THE ACTION SAID TO BE THE RESULT OF THE
MANAGERS ECCENTRIC CONDUCT - AMERI-
CANS FALL TO RESPOND TO HIS APPEALS
THE IrIrS IL

| THE ACTION SAID TO BE THE RESULT OF THE
AANAGERs ECCENTRIC CONDUCT = AMERI.
| CANS FALL TO RESPOND TO HIS APPEALS
THE LIABILITIES OVER 81. 100000
dispatch announcing that provisional man.
ager had been appointed TO conduct the business
Oh the American Exchange In Europe, pending
decision upon petition for the liquidation Of
the business was received here yesterday. 1t
dd not cause much surprise. For year or
more the concern has had no credit rating at
Bradstreets, and the unfavorable manner in which
IL or rather It's manager, Henry b. Gillg, has
appeared Of late before the public, led business
men to look for some such termination Of its
struggles for existence. The liabilities were said
to be s4, 100000.
Inc Exchange was started in London about
fifteen years ago by Mr. Gillig It's object was
to afford greater conveniences to American trav-
ellers in Europe, and aid in the development of
financial and social relations between Europe
ana the United States. 1t sought to be u general
centre at which all sorts of financial exchanges
couid DE effected, where various accommodations
couid be Obtained and where information on mat
terS interesting to tourists could be secured.
1t proved success So great WAS it indeed,
that in 1880 large company was formed, con-
sSlStlhg chleny OF Americans, under the English
Limited Liability law with an authorized capi-
tai OF s5,000,000, of which $3.50, 600 was paid
IN, and succeeded to the business Of III. f. Gillig
WELLKNoWN MEN IN THE COMPANY
| MIR. Gillig remained as vice-president and man.
ager. Senator Joseph Il. Hawley became pres-
dent. Other gentlemen of prominence that be-
came interested in it were ex-Secretary William
Window, eX-Congressman Crapo, Levi NJ Bates
Theodore N. Vail, of the Metropolitan Telephone
Company; President Patterson. of the Trat eers
insurance Company; Henry s. Hyde, of Spring
field; w. 5. Carroll, of Baltimore; and Asa d.
Dickinson. Everything seemed to prosper for
while New branches were established and more
correspondents were added to the list
Two or three years ago, however, unfavorable
reports began to be whispered about. These con-
tlnued to increase despite the rose-cOlored
ances of Mr.. Gillig. No dividend was paid in
1881 and this the versatile manager explained
meHt Of f't the earnings T for the deveopmRe2at
of the business" As he controlled the majority
Of the stock, he managed TO keep things in running
order until the last annual meeting of the stock
! holders held few weeks ago, when a revolt
against his management made by James
Gamble and other stockholders. 1t was quieted
for time, but afterward Mr. Gamble deemed it
necessary to punish Mr.. Gillig in public, and did
so. An effort was made to Obtain loan from
syndicate OF capitalists headed by X: n. Hazard
of the Merchants Loan and Trust Company, TO
tide the Exchange over its difficulties. This loan
was promised, but the notoriety obtained by Mr.
Giliig in his encounter with Mr.. Gamble, and with
the Custom House authorities for smuggling a
diamond necklace, caused the capitalists to draw
back.
APPOINTMENT OF A RECEIVER
As soon as the news of the failure of the London
house reached here, G. Carlton ComstOck, of
Sullivan & Cromwell, counsel for Mr. Glig and
the Exchange went before Judge LacOmbe and
applied for the appointment Of an auxiliary re-
ceiver for the branch Of the Exchange here.
In his affidavit, Mr.. Gillig stated that he was
the owner Of 900 shares in the Exchange. lie
believed the concern to be insolvent and unable to
meet its obligations Ele had received yesterday
morn ng q spatch TO the effect that Arthur Cooper
had been appointed by the High Court Of Chancery
in England as the liquidator of the affairs OF the
Exchange in that country. lie asked that w. y.
Ioone, the secretary and general manager OF the
Exchange in this country be appointed TO take
charge of all property within the Jurisdiction of
the court with all the powers of the liqudatOr
appointed by the High Court of Chancery. Mr.
Giig estimated the assets Of the Exchange in this
country at $4,000.
Judge Lacombe granted the order appointing
Mr.. Boone receiver on his fling penal bond
in the sum of S25, 900. Mr.. Boone was formerly
treasurer Of the Cincinnati Hamilton and Day
ton Railroad when il was under the Ives regime.
He was recommended for the receivership of the
Exchange by several well-lxnOwn bankers and cap
italists including Walter A. Camp, manager OF the
Clearing House.
Mr. Boone was seen at the offices of the Ex
change, No. 81 Broadway, in the afternoon, put
declined to make any statement Of Its afialrS pc
yond saying that ho considered that the assets
would more than cover the liabilities and that no
creditor would loss penny The aSslstant-rnah-
agcr and boolxkeepers were even more ieserygo % Nf
"Ohl it was you fellows that did it all, SAID Slr.
Cillip's representative The attacks OF the press
on us frightened everybody and this is the result"
GOOD WORD FOR MR.. GILLIG.
Mr.. Gillig himself was not III his oftce, out
his counsel, Nelson w. Cromwell partner OF the
late Algernon s. Sullivan, discussed the failure
frankly The firm has been counsel for the Exchange
for years, the practical work having devolyeed
largely upon Mr. Cromwell. He referred to MI
Gilig In the highest terms yesterday, and declared
him to be honest, despite all the talk arising from
the diamond necklace smuggling. Speaking OF
the failure Mr.. Cromwell said that the Exchange /
was an English company, haSin ing its head Once /
In London, with branches in this city, Liver !
pool Queenstown, Berlin and Paris, though the |
Paris office is claimed to be distinct institution |
Through Mr.. Gilligs untring zeal ana ~ |
telligence" Mr. Cromwell continued, the EX-
change has been growing, until now II mas over
$500 correspondents-several brtnchesIwtn
worldwide reputation, and until recently WIN
unbounded confidence and credit The Liabilities
are about S4,000,000. They are represen'cu
principally by commercial credits.
Mr. Gillig states that the immediate cause ol
failure was the breach of contract by parties .
to whom he recently delivered a large lot OF stock
at a great sacrifice to him in price, IN ORDER 10 |
realize money for the company to secure their
cooperation" . .,..+
Mr. Gilg's friends say that he IS almost
prostrated from overwork, and that if he had
been himself the unfortunate occurrences OF the
last few weeks would never nave haPpeHe"
MOBBED By THREE HUNDRED WOMEN
rt,tebur, Anru 70 fSreciaN-Three ~ hundred women