The comet. (Johnson City, Tenn.) 1884-1916, 1900-07-26
The Hawkins Failure.

The case of Hawkins Bros. voluntary
bankrupts, came up before J. b. Cox,
Referee in Bankruptcy, again last Mon
day, and the creditors began tho ex-
animation of w. r. Hawkins, of the
firm. The hearing was continued uu-
til Wednesday, TO quiet little town
like johnson City this case contains
many startling features, and proves
4 the truth of the couplet.
Things are seldom what they seem
Skinned milk maSQueradeS as cream.
All that glitters is not gold,
Black sheep are found in every fold
Attorney J, II. Bowman represents
O. b Rouss, the largest creditor, and
he has conducted the examination, all
OF which has been taken down in short
hand aud is on file in the court. This
record makes an interesting story. 1t
seems that w, II. and b. HaN kins were
originally in the electrical business in
North Carolina, and becoming involved
in debt to about $3, 500 gave a deed Of
trust to their mother and brother for
80, 600, but there seems to be reason to
doubt if any money was ever obtained
by this transaction. However, the
business was sold out under this trust
deed and brought $4,000, Upon this
money the Hawkins Bros went into
the dry goods business in North Caro-
lima. The business grew and the in
debtedness also piled up. They state
in their bill in bankruptcy that when
they came to johnson City they had
SO, 900 worth OF goods. 1t should be
remembered that this firm has always
been Rouss firm in the common ac-
ceptation of that term. At the time they
moved here they wrote Mr.. Rouss that
they had only about $4,000 in stock,
and now admit that they owed So, 100
as firm at that time. SO it will be
seen that they were hopelessly insolvent
when they came to johnson City.
About this time they wrote Mr.. Rouss
that for So, 200 they could buy nice
clean stock of general merchandise at
so cents on the dollar and freight it
here cheap, and open it up with their
goods. Later draft was made for
81, 150 to buy this stock worth $3,975,
as they stated at that time. 1t now de-
velopes that this stock was never pur-
chased, and that this money was used
to pay other obligations. Upon. their
arrival here they very materially in
creased their stock, and at one time
ran it up to Sl2, 900 or $14, 900, and were
doing a nice business. This continued
until the bills began to fall due, and
then it was that their troubles began,
and they never ceased until they went
into bankruptcy. When Mr.. Bowman
asked how it was that they were able
to obtain so much credit when they
were insolvent, the question was OBJ
iected to bylT A. Cox, counsel for
Hawkins Bros, but Referee j. B. Cox
held that it could be answered. Mr..
Hawkins then stated that it was
through letters of recommendation and
credit given them by r. L. 4 b. Brun-
er to various firms in the east, and
further stated that Mr.. Bruner had
been very kind to them and had made
it possible for them to obtain credit
when they could not have gotten it
otherwise. This is a startling admis-
sion in view of the fact that short
time ago this firm brought suit against
r. L. and B. Bruner for injurinG their
credit and placing their damage at sos,
600. This suit has since been yolun-
tarily withdrawn by the plaintiffs, and
in doing 50 they filed statement in
the law court that they had found there
was really no grounds for the suit, and
admitted that they had been led into
bringing the action by outside parties.
This was clearly shown by the testi-
mony of W. r. Hawkins before the
referee
Among the creditors of the firm
appears the mother of the Hawkins
brothers and the brother-in-law of W.
r. Hawkins claiming about 81 500. Mr..
Bowman is making an effort to have
these items disallowed on the ground
that this Indebtedness was incurred by
the former firm composed of W. r. and
| B. Hawkins, and can not be paid out of
the assets Of the present firm Of w. r.,
B. and Beverly Hawkins He has let.
tiers in his possession written to G. b.
Rouss that seem to show this very
clearly. This failure and it's results
have created more excitement in oul
business circles than anything of 6
similar nature that has happened fol
several years on account of the promi
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