The Washington herald., 1907-03-17
HIESTON A BANKRUPT
FURRY in Stocks Cause of
Brokers' Failure.
NET LOSSES WILL BE SMALL
Creditors say Liabilities Are ExaE-
serated in Schedule Filed with the
COuFt-JOseph /. Saks Presents Pc
titiOn for the Appointment of a
Reeeiver-CreditOrs Not Worried.

Walter HiestOn, welI-known stock
broker, with offices at 1920 + street north
west. filed a petition yesterday in volun-
tary bankruptcy in the District Supreme
Court, claiming $4,000 IN liabilities and
S55,so0 in assets. The cause for the failure,
as explained by his attorney. C. Albert
White. was the sudden drop in stocks in
the New York market last week, pre-
ced,d by a long period Of depression in
securities. which depleted the brokers'
financial resources.
A schedule of assets and debts attached
to the petition of bankruptcy shows that
the former-are interest IN the firm of
Wescott, Wilcox & Hieston. $1,000: seat
on Washington Stock Exchange. SlOOo0.
and machine Baker, automobile, 500.
Total, 1880 The listed liabilities amount
TO s625.O00 and consist of secured claims,
Si65,000 and unsecured claims, S15S,000
The creditors included under the head
ing, Secured claims" and who are pro-
tected by securities. are: Post & Flagg,
New York, S250,000; R. II. Lynn. District
of Columbia. $4,000; George Mitchell, New
York, S50o05, Traders National Bank.
District Of Columbia. $4,000; L. S Ran
daI. District of Columbia, $4,000. J. T.
Hendricks, District of Columbia, S25,OGO.
The unsecured claims. totaling sl5S. 900.
are Arthur C. Plant District Of Columbia,
5000; d. A. Greenless. District OF Colum-
bia, $1,000; B. F. Compton, SIS. GOO. Joseph
n. Hunter, $3.50; Joe Saks $1,000: o. S.
Schmidt $i690; W b. Hibbs & Co, g, 800;
Halstead & Co, N.0O9; A. b. Hines. 5000:
G. Howard. 5000; National Metropolitan
Bank, 5000; American National Bank,
$1,000; Alice V. Hieston. s20O0 Wescott.
Wilcox & Hieston. 5000; A Ghinessa,
Baltimore. Nd, $500; 5. y. WhitweI Dis
trict CT Columbia. S15o0 Goint); D. A
Greenless, District OF Columbia, $3000O
Gointl,
Referee Is Named.
Upon presentation Of the petition 10 the
court, Justice Barnard signed ii decree
appointing Attorney William NJ HaIam
referee in bankruptcy petition was
also filed by Joseph l. Saks. in which he
asked the court to appoint receivers to
take charge Of the assets. claiming that
Hieston held in his possession securities
belonging to the petitioner. and that Il was
necessary that the receiver be appointed
TO preserve and protect the assets for the
benefit Of creditors No action was taken
on this petition yesterday.
The failure Of Mr.. Heston was almost
the sole topic in business circles yester-
day. Soon after the fling Of the schedule
of assets and estimated indebtedness,
many Of the creditors declared that the
sums alleged to be owing to them were
much exaggerated. Post & Flagg is
named as one Of the largest creditors.
and Benz. Woodruff, the local manager.
stated yesterday that the loss TO his firm
would not exceed Sle000, and by waiting
for better prices upon the stocks held by
the house as collateral. the loss probably
would not exceed $500.
r II. Lynn. who was in Leesburg yes
terday. telephOned TO The Washington
Herald last night. giving his estimate
upon what he stood TO lose at the present
prices OF stocks as less than $1,000 on
cials OF both the Traders National and
American National banks said yesterday
that Hicston's accounts with them were
amply protected both by collateral and by
indorsers-
Losses VIII BE small
A prominent banker commenting upon
the list Of Indebtedness last night pointed
out number of instances in which the
liabilities were overesumated. and he said
the only way TO figure out any such
amount Of Indebtedness was 20 add to-
gether the actual debts and the securities /
that were pledged 10 protect them. II
was thought by the banker that most OF
the creditors would probably suffer some /
losses through the failure, but that all of /
the items would be much minimized when /
il came to actual liquidation of the col I
lateral, some Of which he declared con- /
sisted Of the best stocks TO be obtained in I
The general impression seemed To be 1
that he had listed his Indebtedness in a fit !
Of despondency, possibly without full data 4
before him, and had made it appear much /
larger than il really was. Mr. Hieston /
is a member Of the Washington Stock 1
Exchange and belongs to number of
clubs in the city.
He was supposed to be an active mem +
Der Of the real estate firm Of Wescott. I
Wilcox & Hieston. but a statement made I
yesterday by Ralston & SiddOns. attorneys /
for the firm, sets forth that his con- I