The morning times. [volume] (Washington, D.C.) 1895-1897, 1895-11-07
WILL CLOSE THEIR DOORS
University Club Men Will Soon
Change Their Headquarters.
EXPENSES TO BE REDUCED
Unsecured Creditors Seek Pay yment of
Their Clatms-CIub's Proposition
Rejected Lila biIities Said to Be
900; Assets, $S3,OO0-Club Con-
fident OF Meeting All Debts.

LIE university tluD, III tut SOiueI VI
Seventeenth and l streets northwest, Will
close its doors at a date, probably an carly
one, TO be determined by the board Of
managers. The club men assign as the
reason for this that they desire TO move
into less expensive establishment, as they
do not care to meet unnecessarily expen-
sive fixed ciIarges on the property.
1t was stated last night also at the club
that the unsecured creditors desire settle
nlent, and that there are now negotiations
pending TO bring about such settlement,
these negotiations so far being entirely
unsatisfactory TO the creditors.
The mortgage debt of the club foots up
$50, 600, and the debt To unsecured cred
tors amounts to about $40, 900. or
this $40, 900 about $1,000 is due 10 local
business men
The property was bought in 1891 from
Mrs. Ray, the wife OF the president or
the old Meridian Club, which was merged
into the new University Club. The Merid-
ian Club was established in 1888 and was
composed mostly of college men and some
who were not collegiates. In 1891 the
University Club was formed, in its men-
bership being included the Meridian men,
the nucleus OF the University men
and the non-college men who belonged TO
the Meridian Club.
MORTGAGES GALORE.
The board Of managers paid Mrs Ray
SS3,0Go cash for the land on which the
present building stands and which is in
area about 10000 square feet. In order
to raise this amuIEt they pat two mortgages
on the Property. a first mortgage TO Il
gentleman OF Philadelphia for $50, 900 and
second mortgage to number or the club
members for $685. One Of the board of
not chat ppitlar the
first nor second mortgages are pressing
their claims, as they are amply secured by
the valuable property.
The $4,000 additional debt, he said,
is due to Barber & Son about $4,000: TO
Lansbnrgh Brothers and to Mr. 5. c. Palmer
possibly $1,000, and about $1,000 in in
terest due on the second mortgage bonds.
The club Goes not regard this interest debt
as pressing, for tue reason that most OF the
second mortgage bondholders are not
pressing its payment and are naturally in
terested in The equitable settlement or The
indebtedness OF the club. Barber & Sons are
groCers. Lansburgh Brothers are the we'll
known dry goods firm, Mr.. Palmer is
dealer in mineral waters and he also repre-
sents some other claims against the club.
CONFERENCE OF CREDITORS.
conference was held yesterday at
the club rooms between a committee of
the unsecured creditors, of which Mr.
5. c. Palmer was chairman. and COM
mittee of the officers OF the club.
After the conference Mr.. Palmer said
10 The Times that he did not care 10
discuss what had taken place, but that no
agreement had been reached. He, in
fact said that the Old not think that the
unsecured creditors would get anything.
he estimated the liabilities of she club
at Sg3 900.
I'M. ri ft,ta Inst frhr nj at -
OF that organization talked quite frankly
about the sftuati,a. he said that the club
mad discussed with the committee of the
creditors the value of the property and
made an offer sa1f settlement ON the basis
of n. sale and the creditors - be reim-
bursed out qf. The equities.
1t Was argued That the property had in
creased in value and that with anything
like fair sale, not only. could the mort
gage debts be .pdf,i, but there wouid be
sufficient margin for the unsecured debt.
1t is understood that this is the definite
proposition OF the club that was rejected
by the unsecured creditors.
VALUE OF THE LAND.
One of the hoard of ma nagers said that
the Army and Navy Club men had given
So foot FOR, The property, which is
diagonally opposite the University Club,
and il is claimed that he University Club
property is dI ltiiSl worm ludl much more
This is the position In which matters
stood last night. The clubmen had heard
nothing of the report that the creditors
would close the clubroGms, and stated that
40 such intimation had been made TO them.
They We're entirely unaware OF what
steps the creditors would take to secure
their claims, if it were the fact that they
intended to proceed legally.
They say that an attachment of the fur
niture will not hold, because there is a
chattel mortgage on that property, which
antedates the Other floating Indebtedness,
and the furniture, they claim, was their
own property when they moved into the
present quarters.
The club appears 10 be anxious to settle
its debt as early and as equitably as pos
sible, and they hold that The property
when sold should pay all claims dollar for
dollar.
They will make their change of head
quarters certainly before January, this,
matter and others to be settled at a meet
ing of the club to be held on Saturday
night.