The daily morning journal and courier., 1896-12-11
THE GAYS ASSIGNMENT
LIABILITIES 4MoUNT TO ABOUT
 $SO,OOO.

ness Win Not be Anected-S1,1 100 of l Pressing Claims-LiabiIities S3O,OOO The assignment made yesterday by William and John Gay individually and | by the firm of Gay Brothers is one of the largest that has been recorded in New Haven for some time, The Hotel Majestic building, the Gayington and Jocelyn flats on York street and large real estate interests on English street, in Fair Haven, are involved, but the Messrs. Gay stated last evening" that the business of the Hotel Majestic would be in no way interfered with, as it is under the control of an entirely distinct party, the Hotel Majestic Joint Stock company, organized a short time ago, which leased the hotel property for five years. John and William Gay continue in the management of the ho- tel for this stock company.
 The causes that led up to the as- signment were several attachments and suits brought against the Gays re- gently by creditors. C. F. Hart X Co. brought preliminary proceedings short time ago to force the firm into in voluntary insolvency, alleging SLIGO debt. L. C. Pfaff & Go. held $400 claim, which was secured by bonds. An attachment covering this claim had been previously placed, but was releas- ed on bonds being furnished. A note of $350 held by the Imperial Laundry company was allowed to go to protest, and the laundry company refused to renew it. In view of these facts At torney Arvine, counsel for the Gays, advised them to make an assignment to protect their creditors.
 The total liabilities of the firm amount to about $30,0 900, of which $15,- GOO is on paper discounted by the Tradesmen's bank of this city and se- cured by real estate to the amount Of s20,0O0. There is another claim on dis counted paper held by bank outside the city, and this claim Is not secured The claims held by the two banks were not pressing and could be renewed leaving about $11 ,O00 worth of open &C., counts consisting of notes given for merchandise of various kinds
 The greater part of the stock of the Hotel Majestic company issued a short time ago was subscribed for and taken by John and William Gay. The total stock of the company was valued at s28, 900 and was divided up into shares of $100 each. The assignors expected to realize on the stock of this corporation, held by them, a sufficient sum to pay the $11 ,000 worth of claims, but they stated last evening that they had been so bothered by creditors that they had not had time to attend to the disposal of the stock. Negotiations have been under way with parties who will prob ably take a large part of the stock held by the Gays and conduct the house, and the brothers stated last evening that they would undoubtedly have real ized from the sale of stocks to these parties enough to have met the claims of creditors had they not been so ur- gent in their demands.
 The property assigned by the two Gay brothers consists of equities in the Hotel Majestic property. William Gay assigned equities in the Gayington and Jocelyn apartment houses, property on English street, a lot near the Bishops Gate entrance to East Rock park and lot on Sycamore street. John Gay has assigned an equal equity in the Hotel Majestic property and also thirty lots and a large apartment house near Brooklyn.
 The Gays stated last night that they could not yet give a list of their assets, but would file a statement in the court in a few days.
 It was stated in an evening paper yesterday that the hotel furniture had been under a mortgage for $15,000, but John Gay said last night that this was not true and that there never had been mortgage on the furniture. It was also stated in evening papers yester- day that John Gay owned the Gaying- ton. As a matter of fact, that house is owned by William Gay.
 Since the organization of the joint stock concern called the Hotel Ma iestic company several days ago, at- tachments on the Gays property have been coming in thick and fast
 The creditors feared that the organi- zation of the corhpany would prevent the collection of their claims, and num- erous small attachments were entered, eliminating in the attachment by At torney VII Ely to recover a claim held by the c. E. Hart company, 352 State street, for a three months meat bill.
 Judge Cleaveland has assigned De- cember 21 for the hearing, and mean while the Gays will submit @ proposi- tion for settlement to the creditors through their attorney, E. P, Arvine.
 James H. Macdonald is named as trustee, but had left town early in the day and could not be seen. MT. Arvine went to Bridgeport at 9:35 yesterday to hold a conference with the members of the Hotel Majestic company of that city. and no statement could be obtain ed from him.
 What the creditors will get out of the estate is not known, for everything standing in their names appears to be mortgaged pretty heavily and in the opinion of some real estate men, about its full value.
 The Gays yesterday afternoon stated regarding their affairs as follows:
 s"The causes of the failure are these: We opened the house in dull summer, at the close of the college year, and went through that season, continuing through the past dull summer, which was followed closely by the national election and stagnation of business.
 Had our creditors not forced us we yyere in a favorable position to get