New-York tribune., 1896-08-27
CAUSES OF THE FAILURE.
EX-JUDGE HILTON'S REFUSAL TO AD-
VANCE MORE MONEY.
INABILITY TO RAISE FUNDS on GOVERNMENT
BoNDs-A COMBINATION OF SMALL CREDITORS
LIABILITIES ESTIMATED AT $1,000. 900
PREDICTION THAI ALL DEBTS

| WILL. BE PAID IN FULL.
George NJ Wright the assignee Of Hilton
Hughes & Co. is a lawyer, with Offices in the
! Stewart Building He had connection with
Hilton. Hughes & Co, but is a friend of ex
Judge Hilton.
The immediate cause Of the assignment
the refusal Of ex-Judge Hilton to carry the bur
den Of the firm any longer upon his shoulders
For a long time he has bolstered up the con-
! Germ, and found large sums Of money from time
to time tide pressing difficulties. until at
| length according to a statement made by his
/ son-n-law, ex-Judge Horace Russell, he came
| to the conclusion that it useless to continue
! throwing good money after bad. This fact pri-
marily. added to a threatening combination of
! large number of small creditors and the fail
to raise money in the last week, brought
! about the collapse Of the house.
THE STRINGENT MONEY MARKET.
/ The latter reason or as they term it, the strin-
gency Of the money market is the avOwed cause
| for the failure that given yesterday by the
assignee and people connected with the firm. To
some extent there. is good foundation for this
statement. For eight days ex-Judge
Russell has been endeavoring to raise $50 900
! for the firm the security Of S1,OOO,OOO Gov
ernment bonds In this he unsuccessful.
and in consequence a conference was held at q
o'clock Tuesday night at ex-Judge Russells Of
flee. No $50 Broadway. Those who pres
ent in addition to the ex-Judge were Elihu Root.
now counsel for the assignee: Mr.. Gillian the
general manager; Colonel Albert b. Hilton.
George NJ Wright and C. b. Cox the head Of the
financial department of Hilton. Hughes & Co.
The situation, in all its bearings and prospects,
was discussed. and shortly before o'clock it
| was finally decided that assignment i'm
perative.
ACTION OF SMALL CREDITORS.
| One Of the pressing causes Of this necessity
was that small creditors to whom sums from
! a few hundred dollars to $1,000 were owing
had formed a combination and placed their
debts in the hands OF Bumenstiel & Hrsch.
lawyers of No. 800 Broadway. Notice was
then given to Hilton. Hughes & Co. that unless
the Indebtedness liquidated legal proceed
ings would be begun Mr.. Gillian said yester
day that none of the large creditors had pressed
their claims but this is probably accounted for
by the fact that good security at the back
of these claims
Mr. Wright and Mr.. Gillian. with the heads
Of the various departments. hard at work
all day yesterday without a break until after
o'clock in the great drygoods establishment.
Colonel Hilton, who had gone to his country
home at Greenwich directly after the meeting
or Tuesday night. not in the city yesterday,
nor was ex-Judge Hilton. the latter being at
Saratoga Ex-Judge Horace Russell refused
to talk at any length. and said that Mr.. Gillian
had covered the whole ground in the statement
that he issued in the morning. At the end OF
his labors for the day. Mr.. Wright. in reply to
an inquiry. said that he had no statement to
make at present. but deputed Mr. Gillian to
give out for publication such information
was obtainable at that stage.
MIR. GIILAMS STATEMENTS.
Mr.. Gillian said: 1T is impossible to say yet
what the total amount Of the firms Indebtedness
is Work to that end will be begun Immediately,
but it will be some time before the schedule can
be made out. In regard to the stock. you can
also say that statement Of assets can be pre-
pared until an appraisement has been made. This
will be a matter of slow work. inasmuch as ap-
praising a stock under an assignment Is quite
different from ordinary business stocktaking
However, should say that full statement of
assets and liabilities will be ready in a week
ten days
Being pressed a little further, however, Mr.
Gillian said that the liabilities for merchandise
were about SG0O.OOO He was disnclined to be-
lieve that the total liabilities would reach $1,000
600. but said that they might come up to $1,000
600 The assets Of Colonel Hilton include the
stock. the easehold of the store, his estate at
Greenwich. Conn. and fe-insurance policies to
the value Of $500 900 Mr. Gillian said he had no
idea Of the worth Of the Greenwich property
and added that the mills Little Falls and in
New-Jersey belonged to ex-Judge Hilton. From
another source 1t was learned that A. b. Hilton
was the owner of the large annex at No. So
Fourth-ave.
THE PAYMENT OF EMPLOYEES
THE employees Mr.. Gillian said. will be paid
all that is due them. our arrangement in the
store was such that payday occurred every day
That is there separate payday for each
department. on Tuesdays wages were paid up
every cent and the salaries now due will also
be paid. This suspension decided upon only
after looking we'll ahead. considering the past
and trying discount the future. We were un-
able to raise money on gilt-edged collateral
curity. Judge Hilton some time ago failed to
raise money on real estate in this city and
Horace Russell could not get $150.OOO on 81 .000,-
600 in Government bonds Although the public
was taken by surprise. can assure you that
there was no sudden landslide We simply
thought it best for all concerned to assign the
stock without preferences Of any kind.
mo, ther- had been no conference with credi-
tors. except with the banks to which owed
money. but they were absolutely secure. 1t
not they who took any action against us.
An assignment would not help the banks In any
way; ii would be detrimcnt to them. in fact
Complaints have been made by the employees of
the rapdty with which the assignment was de-
cded upon. But that actual decision was made
only when Mr.. Russell could not get the money.
or course. II was "A surprise To all Of US In the
firm, because. although We had known for some
time that we were In shallow water. always
had an anchor OF hope In Mr. Hilton's father
From what hear, II Is true that Judge Hilton
refused to advance any more money to the hrm.