Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-18
CITED TO SHOW CAUSE
Court Issues Order in Hieston
Bankruptcy Case.
DISCLOSURE OF STOCKS
Proceedings Requiring Delivery of All
Securities to Receiver.
FOR PROTECTION OF CREDITORS
Referee to Notify Parties of Meeting
to Be Held April RE
ceiver Files Bond.
DISCLOSURE OF STOCKS
FOR PROTECTION OF CREDITORS

Chief Justice Clabaugh, presiding in the
Bankruptcy Court, today cited Post &
Flagg. George Woodruff. manager; George
Mitchell, the Mitchell Mining Company
the Traders National Bank, r. H. Lynn
E. s. Randall. ]. Thilman Hendricks, David
A. Greenles and the American National
Bank. to show cause. Friday, March %,
why they should not disclose, under oath,
what, If any, stocks, bonds, securities. chat
tells or assets of any kind, belonging to the
estate of Walter Hieston, they may have
in their possession or custody, or which may
have come into their possession or custody
within the past four months. They are
also required to show cause why they
should not deliver to John R. Shields. re-
ceiver, any such assets they may have.
The courts order of citation is based on
petition filed this morning by Receiver
Shields. in which he informs the court
that among the assets of Mr. Hieston. he
is advised, are G23 shares of Traders Ma
tional Bank stock, and about 100 shares
Mergenthaler Linotype stock, in the GUS
tody of Post & Flagg, stockholders. of New
York city. and doing business here. whose
agent is Benjamin Woodruff.
He is also advised, he declares, that 5000
shares of Mitchell Mining Company stock
belonging to the bankrupt's estate are in
the custody of r. H. Lynn. Other stocks,
which Mr.. Shields says he does not know,
are. he says. in the custody or possession
of George Mitchell, the Mitchell Mining
Company, the Traders National Bank. Z.
8. Randall, J. Thilman Hendricks. David
A. Greenles and the American National
Bank.
Necessary to Protect Creditors.
Mr. Shields claims that it is necessary to
marshal these assets in the hands of the
Referee Hallam will today send Offices to
Mr.. Hiestons creditors. The receiver ex-
presses fear that the assets are apt to be
dissipated, wasted, sacrificed and not sold
to the best advantage of the bankrupt's es-
tate.
Another reason assigned by Mr.. Shields
for his request to have these securities
turned over to him is that according to
his advices there are certain equities. in
GLIDING dividends, about due on the stocks
and securities, which he alone would be in
position to collect for the benefit Of the
creditors. He declares that it may be nee
essary to sell certain of these securities to
receive advantage of the equities.
Referee Hallam will today send notices to
all the creditors named in the petition Of
Mr.. Hieston. He will designate Monday,
April 1, at 10 O'Clock am, and his office.
45S Louisiana avenue northwest, as the
time and place for holding the first meet
ing of creditors at which a trustee will
be selected
Receiver Files Bond.
John R. Shields. appointed by Referee
VIM. NJ. Hallam as temporary receiver
of the assets of Walter Hieston, the
broker, who last Saturday filed petition
in voluntary bankruptcy, today filed a
bond for $1,000 to guarantee the faith
full performance of his duties. Mr.. Shields
will take possession of all the securities
belonging to the bankrupt'S estate, and
will hold them until the appointment of
a trustee in bankruptcy. to be named
at the first meeting of the creditors of
Mr. Hieston.
Attorney Robert S. Hume will act as
counsel for the receiver.
Discussed on Stock Exchange.
After an executive meeting of the local
stock exchange today, at which the failure
of Mr. Hieston was talked over informally
the governing committee of the exchange
held a brief meeting and decided that no
official recognition of the insolvency of Mr..
Hieston could be taken by the exchange, al
though he is a member AS far as the ex
change is concerned, Mr.. HiestOn is still
member in good standing.
At the executive meeting the question
was raised by several brokers to the
status of Mr.. Hieston since his application
to be adjudged bankrupt was filed. The
insolvent broker holds many options on
stocks, in which transactions members of
the exchange are concerned. but it has been
decided that while the original transac-
lions were made on the exchange they were
renewed privately on the outside and there
fore the board has nothing whatever to do
with the present situation.
It is pointed out that the exchange has
assumed this attitude toward bankrupt
members heretofore and is therefore follow
ing a precedent.
His seat on the exchange is regarded as
an asset just as the automobile named in
the petition.
Value of Exchange Seat.
/. There has been considerable speculation
as to how much money can be got for
seat on the exchange at present. The value
put upon 1t by the insolvent broker HIM
self is $4,000. There are some who say
it will not bring over $500 but this is
conceded to be merely a matter of con-
lecture.
ing by Post & Flagg. large creditors of
Mr. Hieston that through the stock which
they hold as collateral for the loans fhey
made to Mr. Hieston. they have ACQUIRED
an interest in the Traders National Bank
and will be represented on the banks board
of directors by Benjamin Woodruff, focal
manager of the firm. The present hoard
of directors is to be increased in number,
it is said, to twenty-five by the addition of
local conservative business men.
When asked about the probable erect OF
the action of Receiver ShleldS IN an eHort
to secure, through the courts. the custody
of all the stocks held collateral by Mr.
Hieston's creditors, Mr.. Woodruff said this
afternoon that he did not see how the stock
could be taken from the custody of the
creditors.
He did not believe this action would alter
in any way the claim that Post q Flagg
have secured through this situation an in
terest in the Traders National Bank. for.
according to Mr.. Woodruff, somebody has
to vote the stock and 1t must be his firm.
EARLY DECISION EXPECTED.