The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-04-19
A CHAPTER IN FINANCE.
4 Review of the American Exchange an
Its Financial Methods.

4 Review Of the American Exchange an d
Its Financial Methods.
New York Mail and Express.
There are good many Americans IN Europe
to-day who of oney. The American
Exchange of London, Paris and New York has
gone into liquidation, and people holding it's
letters of credit are out Of pocket for the time
at least. The High Court of Chancery appointed
a liquidator yesterday, aud then Mr.. Gillig APP
piled to Judge Lacombe for q receiver and OBJ
tanned the appointment of Mr.. Boone. who 10
said to have had some connection with the firm
of Henry S. Ives s. Co. MIR. Giilig has been in
q good deal of trouble lately arising out of fiuan-
cial transactions. Among other things he is
charged with smuggling diamond necklace
into the country. and thereby making himself
liable to the penal laws of the United States.
The stories about this meteorlc bank who
shone so splendidiy in the eyes of many Ameri-
cans are conflicting. Mr.. William N. Crom-
well, receiver of Mr.. Ives and counsel for the
Exchange, is reported as saying that the compa-
nv was reorganzed IN 1878, with q capital of ST.
O00, 900. of which $500 900 was paid up A form
or officer of the New York branch of the
Exchange says that the concern was formed in
1885, with capital of So, 600, 600, and that only
$3.50, 600 WAS paid IN. It was based upon the
business of Henry F. Gillig 6 Co., who
had q baggage transfer and general util-
itv agency for travellers, built upon the
ashes of the firm of Bowles Brothers, the
American bankers" This ex-oficer of the Elk
change says that the business was valued at
$500 OO0 but it consisted principally of bad
debfs.s History, it will be seen, began to re-
peat itsele very early in the career of the COM
pany. Ex-Lleut. Gov. LOOMS. of Connecticut.
is reported to have said that the stockholders
put in about $780, 000 Another story is that
$3.50. 900 was paid in. 1t is announced that the
concern has had no credit rating az Bradstreet's
for q year At any rate. there seems to have
been q plentiful lack of certainty as TO the
amount of money upon which the company did
its business
Mr. Glllig was the manager of the concern
He entertained sumptuouslv, paying his atten-
tons chiefly to distinguished Americans It il
reported that he spent 10000 year fore the
purpose OF securing business. Most OF the stock
holders appear TO have been Americans. Among
them were Hon. w. w. Grape, OF Massachu-
setts; exile acknowledgements LOOMS. CT Con-
necticut; Mark Twain. ex-Secresary of the
Treasury Window, James g. PATTERSON and
other prominent men. Mr. Giliig persuaded
Senator Hawey to be president of the company.
was 5000 a year The stories 10
the liabilities, also conflicting. The
official announcement seems to be that
thev amount TO S4, 600, 900. This is large and
positors will not lose dollas. This IS e ncours
aging. but customary. People who are inter-
ested IN the matter assert that the iiao mites are
not so large as they are represented TO be. One
man. q lawyer, says that the 81, 600 600 or
liabilities are nominal only. because only per-
canfage OF each letter of credit deposited.
Ex-I4ieutenant-governor LOOMS laughs scorn
fully and says that the liabilities will not begin
reach the alleged amount. Another stockholder
says that the outstanding letters OF credit do not
call for more than 3l0O, 600. Other stockholders
place the liabilities at $25o000 Let rs hope
that the moderate estimates are trus.
As 20 the assets. there seems 10 DO nothing
but the good will and the responsibility OF the
stockholders. One of the interviewed gentle
men says that, outside OF these, the assets will
be found 10 consist Of ranches, bric-a brac, cot
fee and bad debts The OILY hopeful tale comes
from Hartford. Conn. 3 friend Of Senator Haw-
ley saying that a syndicate Of wealthy New
York men will reorganize the company.
This il a new bat thus far rather indefinite
chapter in the history Of the financial expert
ments OF Americans 10 Europe.