Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-04
| BANKRUPTCY CHARGED
Suit at Law Today Against
John Ridout.
FINANCIAL STRAITS
CONFERENCES BETWEEN ATT0R-
NEYs SHOW INDEBTEDNESS.
Efforts to Secure Settlement With
Creditors Without Recourse
to the Courts.
FINANCIAL STRAITS

1llent IN leSd1 ana real estate Circles,
declared a bankrupt.
1t is charged that Mr.. Rdout is
unable to. meet his Indebtedness and
that for some time past he has
failed to pay interest on certain
funds held by him for investment.
Conferences of attorneys repre-
senting creditors to the extent of
more than $Ioo, 900, have been held,
with view of getting the troubles
settled out of court. These meet
ings have been without avail and
Mr.. Ridout must now face the
court to answer the charges that
have been brought against him.
Mr.. Ridout said this afternoon
that he was surprised at the filing
of the suit, but declined to make
any statement in regard to the mat
ter other than to say he hoped to
satisfy all claimants.
petition was today filed in the District
Supreme Court to have John Ridout. we'll
known member of the District bar. ad-
judged a bankrupt.
The petition. filed by Attorneys w. e.
Ambrose. M. N. Richardson and J. Miller
Kenyon. represents that Mr., Ridout is In
debted to Sarah NJ. Baxter in the sum of
s4,i72.JO. evidenced by a demand note,
signed by John Ridout, on which demand
has been made and payment refused; that
1 Ia ic 70 f1n a1rfo
of 5000 advanced to Mr.. Ridout October
30. 1900. on which interest was paid Sep
TENDER %. 1902.
The other petitioning creditor is Eliza
beth H, McCalla, who claims that she adj
vanced Mr.. Ridout $3.50 for investment.
and that she has asked for repayment and
been refused
John Ridout, while insolvent. the Pc
titfoners allege. suffered the Citizens Ma
preference in suits at law filed in the
District Supreme Court. On which judg-
ments were entered October Is, 1904. and
November IL, 1904.
1t is alleged that the suffering Of these
judgments constitutes an act of bankruptcy
under the statutes. and that its purpose
was to prefer the bank over other cred
itors. The petitioners, it Is understood fear
that II some action were not taken to pro-
tect them the bank would be enabled to
collect its judgments and lessen their OPP
portunities for enforcing payment.
In Financial Straits.
For a number of months it has been
widely known In legal and business circles
that Mr.. Ridout was in financial straits,
and within the past two months a num-
Der of meetings have been held by attor-
reys. representing about a dozen creditors
with sums owing them aggregating about
100000. for the purpose of adjusting Mr..
Ridouts affairs as between himself and
his creditors without the necessity OF re-
course to the courts.
Various propositions have been made by
counsel representing both Mr.. Ridout and
the creditors. and at various stages of the
negotiations 1t appeared that an adjust
ment of the difficulties might be had, but
about week ago, it is understood counsel
for Mr.. Ridout informed those with whom
he had been comforting that an adjustment
was impossible and that he as counsel was
at the end of his resources, and it therefore
became necessary to take the steps which
were taken today in the courts.
After consultation between the various
attorneys representing the creditors it was
determined that in order to protect their
clients it would be necessary to institute
the proceedings which were filed this morn
been set for January II. 1908. Upon a can
vass of Mr.. Ridout's affairs his Indebted
ness Is found, 1t Is said, to be In excess of
100000 His total assets clear Of all in
CumDranCe are eSllmdleQ at $oU,VVU
Prominent in Legal Circles.
For many years Mr.. Ridout has been
prominent in legal and business affairs in
the District, and for the past twenty-five
years has been looked upon as an authority
upon real estate matters Prior to the or
ganization and full development of the
title companies, to whom has now very
generally been committed the business OF
\ Lo.J
tensive practice among real estate men
and to a considerable extent made spe-
cialty of passing on titles to real estate.
For the past ten years, however, his prac-
tice has been of more varied character.
Originally he was a clerk in the Treasury
Department but left that department tC
practice law, in which profession he has
been engaged for the past twenty five
years. He and Mr.. Irving Williamson, the
counsel for Mr.. Waggaman, are half broth
ers. and through this connection Mr.. Ridoui
had figured as trustee in a number of i'm
portant real estate deals with Mr.. Wag-
gaman. 1t is understood that to some at
least he made business of investing
money In real estate for clients, himSel1
placing the valuation on them, and 1t is
stated that a considerable amount of his
| liabilities are to persons who had intrust.
ed him with money for Investment the in
vestments turning out unfortunately
For several months past-in reality, since
soon after the announcement of the failure
OF InOmaS r.. Waggaman - rumOrS have
been rife about the city hall and In certain
church circles that Mr.. Ridout was in finan-
cial difficulty. but nearly everything that
was heard was based on hearsay Callers
at Mr.. Ridouts Office In the Fendall build
ing, 3f4 ID street, have complained of their
| inability to find him there and only rarely
OF late has he been seen about the co,1rt
house. where formerly he was. to all intents
and purposes, an habitue.
Case Deplorable One.
THE case is a deplorable one" seemed
| to be the consensus Of opinion among
| members Of the bar, practically all OF
| whom are Mr.. Rfdout's frienLs. when they
became aware this afternoon that the
| state of his affairs was about to be launch.
| ed as public property.
Bad Investments and precipitation of
| my business affairs resulting from the
1 failure of Thomas E. Wagaman," Is the
| only explanation Mr.. Ridout hos given ia
| his closest friends so far as could be
learned. Beyond the foregoing 1t Is de-
| ciared, he has positively declined to dis
| cuss the matter, even with his inttmates
There is an impression prevailing among
! a large number OF the members of the bar
| that Mr.. Ridout's present status Is the re-
suit of dealings on the stock exchange This
belief Is strengthened by the fact that Au-
gust q last he was named defendant
jointly with John V. Barross in a suit filed
| by the Citizens National Bank to recover
| 81 500 alleged to be due on a promissory
note. Judgment by default was rendered