St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-04-09
STOLE HALF A MILLION.
Manager Hilger's Defalcation
Caused the Sistare Failure.

Manager Hilger's DefalcatiOn
Caused the Sistare Failure.
NEW YORK, April s.-The assignment
of w. II. M. Sistare and Harold Cole
man. of the firm of q. K. Sistare's Sons,
bankers and bro kers at No. IA Broad
street, to Henry j. Dawson Jr., was
filed to-day. George Reed. of Detroit,
Mich.. and M. Feldmeier, of New York,
are the only preferred creditors. The
preferences to the former are $4,000,
and to the latter $4,000. both being for
money due on stock transactions. Henry
S. Bennett, counsel for the assignee.
says that 10 one can yet tell
the amount of the defalcation.
He states that the deficit caused
by Hilger may amount to 100000. He
added that additional evidences of Hill
gers wrOngdOing were constantly being
discovered. "The books" he said,
shave been falsifed, and with this the
case it will be impossible to tell what
the shortage is until they have been
thoroughly examined. We find, too,
that he made drafts on the New York
house
Under the False Pretense
that they represented business con-
Quoted by him for the firms Philadel-
phia customers. With such matters to
be Strengthened out, 1t is impossible to
say how the firm stands. though every
possible effort is being made to reach
the result at the earliest moment"
Some singular things were learned to-
day in regard to a lawsuit for
$4,000 which is pending against the
firu Tho ra0Qnflu hrnIl r1t
by Stephen K. Stanton, of this city. It
is based upon prOmlssOry note drawn
in 1886 and bears the names of William
81. NJ. Sist are and George K. Sistare as
aSsignees, though both declare that the
signatures are not theirs and not author
lied by them. They say that the note
was drawn by Alexander M. Stanton,
their former manager at Detroit, who is
a brother of the plaintiff. They add
that Stephen K. Stanton was aware that
his brother had no authority to sign
their names to the notes and that no
mention was made of the note for
three years, although it is payable on
demand. They also charge that Stephen
K. Stanton received from his brother
securities belonging to the firm, among
which was $4,000 worth of stock of the
Detroit Steel and Spring company. The
bringing OF is SulC is SdlQ 10 DC one OF
the causes which led to
The Present Suspension.
Mr.. Sistare was closeted with his law
yer. II. S. Bennett. of No. IS Broadway,
all the forenoon. He declined to talk.
Mr.. Bennett said that no statement of
the condition of affairs can yet be made,
and that negotiations are on foot look
ing to the tiding over of the present
embarrassment. 1t was subsequently
learned that some kind of an agreement
had been drawn up and signed by Mr..
Sistare, which he now refuses to carry
out upon the advice OF his lawyer. The
agreement provided for the placing of
S100, 900 in the hands of the firm at once,
presumably by one of the railroads
whose stock the firm has been hand
ling. The lawyers representing this
railroad threaten to take summary ac-
ton against Mr.. Sistare if the agree
ment is not carried out.
SYRACUSE, n. Y, April S.-The Ca.
yuga Wool Manufacturing Company
of Auburn is in the hands of a receiver,
because of the failure of R. Townsend
& Co., who handled their product. The
liabilities amount to $4,000. The nOm-
inal assets amount to S135,000 and are
probably worth $4,000. The receiver
will run the mill until the material on
hand is ma nufactured.