The Saint Paul globe., 1897-05-30
- = .-.-I
NKATO'S BIG CRASH.
Shrinkage In Values Caused the
Hubbard Failure.

Shrinkage In Values Caused the
Hubbard Failure.
Special to the Globe.
MANKATO, Mimi, May 29.-The
largest failure ever occurring in this
part Of the state took place here to-
day. The Hubbard Milling company
made voluntary assignment to Geo.
T. Barr and a few minutes later r. D.
Hubbard followed with personal as
signment naming Geo. M. Palmer as
signee Papers were filed with clerk
of the court today and assignees will
be required to furnish heavy bonds.
Mr.. Hubbard has not yet given
definite estimate of assets and liabili-
ties. but places the latter at half mill
lion dollars. The assets will not exceed
over two thirds this amount The sche-
dule will be filed in few days, and
not until then will the details be known.
The creditors are nearly all Eastern
banking institutions. None of the local
banks will be affected, and it is not
thought this failure will embarass any
other concern. Rumors have been
afiCat for some time, that the company
was in bad financial condition, and
the failure does not come as shock
to Mankato.
The insolvency of Mr. Hubbard is sad to be
due to depreciation of stock Of the National
Linseed Oil company, of which he is large
shareholder. In 1888 Hubbard & Gere owned
and operated the -arge oil mill at Sioux City,
and turned that property over to the oil COM
pany for II ,000 shares of stock, then worth
$33 per share. The decline in value of this
stock began in 1892, and the panic of '93 re-
duced its value. so that today 1t is quoted at
$40 a share. When Mr.. Hubbard retired from
| the management of the company a few years
ago the shares were worth s55. This shows
depreciation from $780, ,0G0 to $4,000. Mr.
Hubbard drew heavily from the milling COM
pany to meet the demands made upon him
on account of the shrinkage of these se-
curities. which were held by Eastern banks
as collateral. During the past four years
Mr.. Hubbards properties have shrunk in
value over $8OO,G00. He has endeavored to
settle with his creditors, but nothing sue
ceeded, and was forced to tile assignment of
today.
The property of Hubbard & Thompson, who
own large cattle ranch at Miles City
some ten days ago. Mr.. Hubbard invested
| $157, 600 in this ranch fourteen years ago. It
has not paid, and Mr.. Hubbard has for sew
eral years carried an Indebtedness of 5000, 900
| on this property. When the ranch was
started 4400 head of cattle were placed upon
| 1t, and it was supposed up to few DAYS ago
that 5000 cattle were feeding but the re.
ceiver returns only 947 head. Mr.. Hubbard
places his loss on this investment at $3.50, COO
However, the linseed oil company is credited
with his financial downfall. Hubbard &
Gere also had 10000 tied up with the Union
Loan and Trust company at Sioux City
| when it failed.
Hubbard & Palmer who operate line of
elevators, extending from here to Mitchell
S. D., will not be affected by today's assign
ment.
Mr.. Hubbard has recently Withdrawn from
the firm of Davis, Hubbard & Co.. of Min
neapolis, which controls line of elevators
Mr.. Palmer, one of the assignees, being his
successor.
The "Big MIL" In this city, having ca
pacity of loo barrels of flour daily, will
close down tonight
The assignment of the milling company
was made by R. D. Hubbard, president, sn5
his son, Jay Hubbard, secretary. The for
mer this afternoon made an affidavit that
| the value of the estate assigned Is LOCO.
| In his personal assignment affidavits show
| the estate assigned to be $105. 900. Mcmillan.
| the Minneapolis attorney, and secretary of
the American Surety of New York, is here.
and made out the assgnee's bond for Mr..
| Barr at $3C0.000 and Mr. Palmer $20O. .O00 The
| bonds will be made out at Minneapolis and
| returned here Monday. Mr.. Hubbard has al
| ways been considered one of the best busi-
/ ness men in the Northwest and is quoted
among Minnesota's miHonaires Some
| months ago he was written up at length in
| the Chicago papers as the Flour Kine' Of
| the world, having been the instigator and
organizer Of the National Flour Combine Of
| America He has one of the finest homes
| in this city, but as only one lot is exemnt
| Ills barn and beautiful grounds are included
| in the assets.