Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-04-14
UP THE FLUME.
Gillig's American Exchange in London
Fails for Four Millions.

Gilllg's American Exchange in London
Fails for Four Millions.
New YoRK, April 13th.-The suspension
of the American Exchange in Europe
Qimited) WAS reported to-day, and William
g. Boone, the Treasurer of the company,
was appointed Receiver. Attorney Crom-
well said the liabilities were 81 .0o0 600.
The company was formed in 1880 under the
English limited liability law, with an au-
thoIized capital of $5,0o0,000, of which
$4,000 was paid in, and succeeded to the
business of II. f. Gillig & Co., which had
been established in 1873, paying So 600 600
in stock for the purchase. Henry F. Gillig
remained as Vice-President and Manager,
Hon. Joseph P. Hawley being the Presi-
dent.
ALLEGED CAUSES OF THE FAILURE.
Copyright, 1888, by The California associated Eressl
New York, April I3th.-Gillig's friends
claim that the failure of the American Ex-
change in Europe is due to articles recently
printed concerning Gillig. There has,
however, been trouble for some time, and
it was with difficulty that the stockholders
were treasured. At the meeting held April
I'd, the disconnected ones were assured that
the company was all right. 1t was alleged
that money had been expended in extend
ing European business and in other i'm
provements. Gilhg's interest voted over
100000 shares and retained the control.
Application was to-day made TO Judge
Lacomb to appoint Receiver, which re-
quest was granted. A statement has been
issued by Gillig's counsel which contains
the following statement: The liabilities
are about s., 600 009, represented principally
by commercial creditors. 1t is confidently
believed that the assets will pay all the
money obligations of the company, al
though it may lead TO some shrinkage of
the stock.
WHAT GLLLIG SAYS.
Gillig states the immediate cause of the
failure to be breach of contract by par
ties to whom he recently delivered large
lot of stock, at great sacrifice to himself,
to realize funds for the company to secure
their cooperation. The general cause is
the inability to realize in time on the good
assets of The company to meet the active
drain upon the treasury caused principally
by recent newspaper publicity. An Eng
lish Court this morning appointed Pro-
visional Liouidator in london, Arthur
Cooper, to take possession until the ques-
ton of permanent liquidation could be
considered.
sorEKR LOT or ASSETS.
The assets Of the Exchange are said 70
include Colorado ranch, q lot of coffee, a
supply of bric-a-brac, o few second
hand guns from Bogardus, and an I'M
limited supply of good will. 1t recently
loaned to III. Stevens, of this city, 500, GOO
on exchanges account with which to pur-
chase bric-a- brac abroad. When Stevens
returned he found himself unable to meet
his obligations to the Exchange, and Gillig
Ghereupon took the bric-a-brac. The sale Of
a portion of it here realized about SIS 600.
Very soon after that he loaned Stevens
81. 600 more with which to repeat his brio
a-brac operation, and Stevens is about
making fresh collection.
The ranch was taken from Jack Haserly
for loan of SIS, GOO.
Gillig is reported to have desired to marry
Mrs. Frank Leslie, who invested $50 900 in
the Exchange.