The Washington herald., 1907-03-19

The Hieston failure continued 10 be the
chief topic of conversation yesterday in
financial circles and about the streets. A
few additional facts developed along the
line of the exaggerated amount of the
liabilities, several Of the creditors dis
claiming the amounts said 10 be due
them in the list OF debts. One of the
alleged creditors declared that he had
never had any dealings with the broker,
did not know of any debt due him. and
was inclined 20 be indignant that his
name had been placed among the cred
itors.
Some excitement was caused when news
OF the action of Judge Clabaugh's court
was announced and the call by the re-
ceiver upon a number of creditors TO
turn over the securities they held as COLI
lateral on loans. Several of the parties
interested expressed the opinion that they
could show cause why they should not
part with the securities which had been
given weeks or months ago as security
for notes given by Mr. Hieston
Coarse Gives General satisfaction.
OF course, if the securities must be
turned aver and all the creditors are TO
depend upon sale of the stocks and
bonds by the receiver and a dividend
which may be declared after such sale.
matters win be somewhat complicated
from the standpoint Of the brokers and
banks to whom Mr. Hieston is indebted.
In general. however, there was a feel
ing of Satisfaction that the matter of the
Indebtedness was TO be taken into the
a -Ns.
cerned.
A rlmor was current yesterday after
noon. which could not be verified. that
the attorneys and receiver had come 70
the conclusion that Ii would be a COM
paratiVey easy matter 10 pool the Sc
cuFities. pay OF the brokers' indebted
ness, and leave him free to engage in
business again without long litigation or
delay.
This tumor, il is said. grew out OF
disposition on the part of Mr. Hiestons
friends TO tender him aid in his distress.
and so 20 adjust his affairs that an early
resumption of business would be possible.
Justice CIabnuEh Issues Order.
Chief Justice Clabaugh's decree cites
Post & Flagg. Benjamin Woodruff, man
ager; George Mitchell, the Mitchell Min
ing Company, the Traders National
Bank. r. II. Lynn, L. s. Randall, T.
Thilman Hendrick. David A Creenlees,
Sand the American National Bank TO
show cause Friday, March %, why they
should not disclose, under oath, stocks,
bonds, securities, chattels, assets of any
kind belonging to the estate Of Walter
Hieston, which may be in their possession
or custody. or which may have come IN
four months They are further ordered
10 show why they should not deliver any
assets of the Hieston estate they may
have to John r. Shields, receiver
John r. Shields, the receiver, alleges
that among the assets of Mr.. Hieston are
go shares of Traders National Bank
stock, and about 100 shares of Mergen-
thaler Linotype stock which he alleges
are in the custody of Post q Flagg. stock
brokers, Of New York, whose local agent
is Benjamin Woodruff Ii is further al
legged hy Mr.. Shields that 5000 shares Of
Mitchell Mining Company stock, the prop
erty OF the bankrupts estate. are in the
custody OF r. II. Lynn, and that there
are other stocks. the value OF which he
does not know, in the custody and pos
session of the parties named above,
Hearing Set for April 4.
The reason assigned by Mr, Shields for
this .steD is that it is necessary TO bring
these assets within the reach Of Mr..
Hallam, the referee appointed by the
court who Yesterday sent notices to Mr.
Hieston's creditors. Mr.. Shields also
alleges that there are certain equities
which be alone would be in a position to
collect for the benefit OF the creditors Of
the bankrupt estate. Referee Hailam,
who SAINT notices TO Hteston's creditors
yesterday, designated Monday. April ]. at
10 a. no.. and his Office, 85S Louisiana ave
nue., as the time and place for the holding
the first meeting of the creditors at which
a trustee VIII be selected
John r. Shields yesterday filed bond
of $500 90 guarantee the faithful per-
formgnce of his duties as temporary re-
ceiveT of the assets OF Hieston He viii
take possession Of the assets Of the estate.
and viii hold them until the appointment
of a trustee in bankruptcy. which will be
done at the first meeting of Hieston's
creditors