The San Francisco call., 1896-08-27
The Mammoth Concern Sue.
cumbs to the Prevailing
Monetary Stringency.
STATEMENT OF THE ASSIGNEE
Judge Hilton's Sacrifices to Sustain
the Firm Do Not Appease
the Creditors.

NEW YORK, N. Y, Aug. 26.-Hilton,
Hughes & Co., the dry-goods firm, as
signed to-day. The following notice
posted on the doors of the big building at
Broadway and Ninth street, occupied by
Hilton, Hughes & Co., attracted a big
crowd on their way to business:
Hilton, Hughes d. Co. have discontinued
business and made general assignment,
without preference. to George M. Wright. All
employees are notified that their services are
no longer required and that they will De paid
in full to-day and including this day..
The store will remain closed until further
notice. II the services of any employees are
needed by the assignee they will be notified.
Dated, August %. HILTON, HUGHES CON-
PANY. GEORGE M. WRIGHT, Assignee.
The immediate cause of the failure is
ascribed to the fact that the firm carried
on its books over 81 ,O00, 600 worth of what
These creditors are well-to-do uptown
people, who make it point of settling
their bills once year. Recent pressure
upon Hilton, Hughes & Co. and their in
ability to realize from outstanding &C
counts precipitated crisis.
The liabilities are estimated all the way
from 81 100000 to 81, SOC, 900. In March
last the firm, according to Bradstreet's,
claimed assets of S., 1863, 900 and liabilities
of S1,230000, leaving net assets OF
81, 13S, 600.
George NJ. Wright, assignee, made the
following statement this afternoon:
parties in interest became satisfied that
the business was not making profit. 1t
was therefore determined to close 1t. 1t
was at first supposed that this could be
done by an ordinary closing-out sale
without any general assignment. With
this end in view Judge Hilton within the
last month advanced $25o,000 to the firm
tn pay on account of merchandise claims.
He has during the last few years ad-
vanced very large sums.
He would have been willing to advance
enough to pay all the unsecured claims,
but in the present monetary stringency it
is more than inconvenient TO raise that
amount at once, though the sum is not
large-less than $500, 900.
"The existing difficulties every merchant
and banker knows. AS claims were press
ing there seemed 10 be no other way to
close the business with equal justice to all
creditors and preserve the property from
sacrifice but q general assignment with
out preferences.
ut is believed that all the merchandise
and general debts can be paid in full out
of sales of the stock and the collection of
outstanding accounts. The bank paper
is secured and will of course all be paid.
Negotiations are pending for the sale OF
the whole stock, which, il carried through,
will result in settlement of the debts in
q very short time"
George M. Wright, the assignee OF Hill
ton, Hughes & Co., is q lawyer. He had
no connection with the firm, but is q
friend of ex-Judge Hilton.
The firm of Hilton. Hughes Il Co. Is one
of the largest and best known in the retail
dry-goods trade. They did an enormous
business, and when some days ago rumors
became current that the firm was in finan-
cial trouble there was much surprise, and
doubts as to their correctness were freely
expressed.
The business firm was established by
the late Alexander T. Stewart in 1923.
Some time after Mr. Stewards death in
1856, the firm name was changed to that
OF E. ]. Denning & Co., and so continued
until about five years ago. Upon Mr..
Denning's death at that time it was again
changed, ex-Judge Hilton becoming senior
partner, and the business being continued
until the present firm name.
The business for the last quarter of g
century has been carried on in the great
establishment in the block bounded by
Broadway, Fourth avenue and Ninth and
Tenth streets.
During the height of the season Hilton,
Hughes & Co. had frequently employed,
including inside and outside help, over
500 hands. Recently the help had not
exceeded 1900. During the past four
months the staff had been constantly re-
duced, the number ''let out" since May
exceeding 400.
A representative of one of the commer-
cial agencies was early on the scene.
THE firm" he said, "has not been con-
sidered strong for over year past. 1t has
been considered slow IN making pay
ments. Within recent period it had
come TO my knowledge that many firms
had declined TO sell them goods The
liabilities, l expect, Will reach 500, ,o0o.n