Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-01
AGREE TO POSTPONE
Creditors of Walter Hieston
Defer Action on Trusteeship.
HEARING TO OCCUR FRIDAY
Number of Claims Filed With the
Referee in Bankruptcy.
BACKED BY SWORN STATEMENTS
Mr. Hieston to Be Intercepted at De-
ferred Acknowledgements
Tomorrow on Rule.
HEARING TO OCCUR FRIDAY
BACKED BY SWORN STATEMENTS

Walter Hieston, who, March 16 last, filed
a petition in bankruptcy, alleging that he
Is indebted in the sum of s625O0o, was today
postponed until Friday next at pm. This
postponement was agreed on at the first
meeting of creditors held this morning at
the office of VIM. NJ. Hallam, referee in
bankruptcy. Mr.. Hieston it is understood,
will be present next Friday and submit to
an examination by his creditors or their
counsel.
When the meeting was called to order by
Referee Hallam this morning there were
present Attorney c. Albert White, repre-
senting the bankrupt; Attorney r. s. Hume,
on behalf of John r. Shields. the receiver,
who was also present, and Joseph l. Saks,
a creditor; Attorney F. l.. Siddons, for
Wescott. Wilcox & Hieston and w. R.
Wilcox, creditors: Attorney Corcoran Thorn,
for Benjamin F. Compton. and the follow
ing creditors in person: d. Agnew Green
lees. A. b. Hines, Arthur G. Plant and j.
c. Howard. Attorney Arthur Peter, VINO
is counsel for Post & F'lagg, the largest
creditor, and Benjamin Woodruff. local
representative of that firm, were present,
but took no part in the proceedings.
The first clam Iiled with the referee was
that Of Benjamin F. Compton, who says
Mr.. Hieston is indebted to him in the sum
of $24, 10. Other claims proved before the
referee were: Arthur G. Pant, $4,000, al
II
note dated June 21 last; d. Agnew Green
lees 800 900 of which he says $4,000 rep
resents a note held by him for balance due
on old transactions and S29oo note pald
Albert B. Hines, S3,95S91, represented by
promssory notes signed by Hieston.
Supported by Affidavit.
Mr. Compton in an affidavit proving his
claim for $24,720, says that he employed
member OF the WASHINGTON
Stock Exchange, to purchase certain stock
for him on the local exchange. Among
other purchases, he says, were 800 shares
of Mergenthaler. in payment for which Mr..
Compton had not at that time sufficient
funds in hand to pay in cash, and intended
to make loan to secure the balance of the
purchase money.
He charges that Hieston, having knowl-
edge of that fact. requested him to let HES
ton have the stock transferred to his name
for the purpose of receiving the dividends,
paving charges and remtting balance to
Compton. He says Hieston informed him
that such was a custom among stock
brokers.
Mr. Compton says an additional issue of
stock was thereafter made by the company
by which his holding was increased to G3o
shares This stock, Mr.. Compton declares.
he thought was still in the custody of HES
ton, or under his control, until March lolast,
when he learned that the said Hieston mad
sold the stock and converted the same to his
own use. This stock, it is alleged, had
market value at that date of $6S,9IO, on
which there was loan of $4S, 100, making
net value of $40, SO, which latter amount, 1T
is claimed, came into the custody and con-
troll of Hieston, and which, it is alleged, he
converted to his own use.
A similar transaction is alleged by Mr..
Compton in his affidavit, involving 800
shares of Lanston Monotype. the net value
of which, it is claimed was $3.50, making
a total Indebtedness Of s24,72o Mr.. Comp
ton also claims that Mr.. Hieston was
member of the firm of Westcott, Wilcox &
Hieston, when he employed him, although
the date of such employment is not set out.
At the time of the filing of the bankrupts
petition it was given out that Hleston had
not been a member of that firm for two
years, notwithstanding that in his schedule
of assets he puts down interest In firm OF
Westcott Wilcox & Hieston, valued at
$25, 0OO."
Hearing on Rule.
The hearing on the rule to show cause,
issued against the alleged secured creditors,
Is expected tomorrow. Answers of only
three secured creditors have been filed, but
it is understood the answer of Post &
Flagg will be filed by Attorney Arthur
Peter before the hearing.
Attorney Peter in a conversation with
Star reporter today, said:
Our firms claim against HieSton will
probably reach 100000 to offset which we
hold securities valued at about $4,000.
With the exception of about $4,000 all
these securities were in our hands at least
ten months ago, and IL large majority OF
them as long as two years
The amendment to the bankruptcy act
provides that a transfer Of security within
four months to be invaldated must be made
with intention to prefer, and the person re-
ceivng it or benefiting by it must have had
reasonable cause to believe it intended
TO create a preference.
1t is understood the secured creditors who
received any assets within the four months
preceding the filing of the bankrupt's petit
ton will claim that no preference was in
tended.
Responses Filed Late.
Answers to the recent rule were filed late
this afternoon by the American National
Bank and r. II. Lynn, through Attorneys
Berry G. Minor The bank says Hieston Is
Indebted to it to the extent of $4,000. repre-
sented by three promissory notes, but de-
MES that it has in it's custody any stocks,
bonds or securities belonging to the bank
rupt his estate.
The answer of Mr.. Lynn claims the in
debtedness of Hieston to him to be Sc, 100.
balance due a promissory note. He adj
mits that about two years ago H1eston de-
posted with him one-third interest in an
accepted draft dated November %. 1904 for
81, 800. Mr.. Lynn says that last February
he gave Hieston an option on the purchase
of certain stocks, but declares that Hieston
has never exercised his rights under the
option.
Marriage Licenses
Marriage licenses have been issued to the