Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-01-21
TRUSTEE
TELLSGAUSE OF
BILLINGS CRASH
Declares Big New York Gem
Firm Never Recovered from
Panic of 1907.

The failure of Chester Billings & Son.
one of the Oldest and best-known dia-
mond and jewelry firms in the country,
which wen to the wall in New York
yesterday for $500, 900. was news to Uzal
FL. McCarter, of this city, who was one
of three trustees named by the creditors
in May, 1908, when the firm was totter-
ing in an effort to save it.. With him
as trustees We're John V. Van Clief and
August Oppenheimer, OF New York city.
The trustees had no interest OF any kind
financially in the concern.
Mr.. McCarter did. not know that mat
tiers had come to a head in the financial
affairs of the concern until informed by
a STAR reporter today. For some time
the bankruptcy proceedings had been
pending. and, in view of the fact that
the trusteeship was to expire on Feb
ruary ] next, the trustees had acquiesced
with the creditors some time ago hat
proceedings in bankruptcy was the only
course
MIR. MeCarter said today: THE firm
was one of the strongest in the world
prior to the panic of 1907. At that time
the firm was loaded up with stock,
1 largely uidIllOHuS, thai COulu nOl De
readily turned into cash. They could
not obtain money from banks. and at
that time they were on the verge of
failure.
"In order to conserve the best inter
ests of the members of the firm and its
creditors, it was then decided to appoint
trustees to look after the business on be-
half of the creditors. This was lone in
| Nav 1Q0Q Dat Tho I,,~;nAc, 1i1 not
pick up as expected, and it was found
impossible to work the firm out of its
financial difficulties. With the nearing
of the expiration of the liquidation pc
Rod granted the trustees, and which
had been extended to February 1, and
with the sales not picking up enough to
warrant afcontinuance of the business,
it was decided by all hands concerned,
the members of the firm, the trustees
AMI the creditors, to wind up the whole
thing by an assignment and bankruptcy
proceedings"
Mr.. McCarter said personally he had
no knowledge of the exact assets or
liabilities, but believed, as do the Off
GERS of the company, that eventually
the assets will more than cover the
liabilities. The liabilities are reported
as $500, 900, while the assets are figured
at anywhere between that figure and
81, 000, 900.
The failed firm was established in
Baltimore in 1910, under the name of
Randel & Baremore, but soon moved to
New York city. In 1880 the firm name
was changed to Randel, Baremore &
Billings, and in 1897 to Chester Billings
d SON.. Chester Billings died that same
year, but the firm name was continued,
and in 1906 the business was incor-
porated with a capital stock of $500, 900.
Henry B.. Billings was president and
A. II. Kirkpatrick vice-president.
Up to 1906 the business had been
located at So Nassau street, but in thai
year the firm moved uptown, to 353
Fifth avenue, orr Thirty-fourth
street, across Fifth avenue from the
Waldorf-Astoria The firm paid a
rental of about $3.50 0 a year for this
property, and, as they have a nineteen
year lease, of which ten has still to run,
The lease will prove a valuable part of
the FIRMS assets. Property at that sec
ton has greatly appreciated in value
since 1905, when the defunct firm leased
the property.
The assignment that precipitated the
bankruptcy proceedings yesterday was
signed by A. H. Kirkpatrick. the vice.
president. The petition in bankruptcy
was filed by c.. H. Payne, for the fol-
lowing creditors: Sloan & Co., S1,S8b;
A.. j. Hedges & Co., $1,157, and Car
rington & Co, $2,367.
1T is simply the breakup of a firm
that could no longer exist" remarked
Mr.. McCarter. "They could not re-
cover the losses they sustained by
reason of being overstocked when the
panic of 1907 hit the country. All
,parties concerned tried hard to save
the old name and prestige, but without
avail"