New-York tribune., 1910-10-22
FOR OLD HOTEL
Creditors Put the Hoffman House
Into Bankruptcy.
BUSINESS TO BE CONTINUED
Reorganization Expected 20
Make 1t Possible to Keep
House Open.

An involuntary petition in bankruptcy
against the Hoffman House Ne" 10TH
which operates the hotel of that name at
Broadway and 25th street. was nIeo yes
terdav afternoon in the United States DIS
trict Court nv Charles A. Dards, horlst' J.
Diamond & Son. plumbers, ana ). APpie-
gate & Co. fish dealers. whose claims Ior
goods sold and delivered and for Work
done aggregate s. .2O1 Il. Rosenthal & Heer-
nance. attorneys for the first TWO creditors
and I. Gainsburg, attorney for the thiru'
alleged that the corporation is nsoiVeht
and had transferred part of its property 10
certain other creditors to give them pref
erence.
one of these fs John B. Stanchfeld' VINO
as trustee under a mortgage 10 secure
bond of s150O took possession several
davs ago of the furniture and hxtures Oh
the house.
Tanas NJ Rosenberg. Of the law firm OF
lanes ScbelI & EIkus. representing MI
stanchfeId asserts that the seizure was
made in accordance with the terms OF Il
mortgage recorded more than two years
ago. which. as is usual in such documents
authorized the trustee TO take possession
of the property upon default in the pay
clared TO have occurred.
II was learned that this mortgage was
niaced for the purpose OF financing exten-
sive improvements at a time when the hotei
was in most fiourishing condition. Just
after that however. the panic occurred. ana
the cornpany was unable to regain its Tor
NOR nosi+ion. Since then il has been pay
ing bills with considerable regularity untl
several months ago. when ii called IN us
creditors and asked for an extension.
/ The extension was granted. Fut, IN the
mean time. payment on the mortgage was
| stopped and the crisis Of yesterday orousH'
about The petitiOning creditors holo
that the unencumbe bered assets amount 70
al least $4,000 and ask that d receiver DC
appointed before they can be disposed oI.
The building is not owned by the corpora
/ ton. but is leased from the Gerry and hln-
nev estates at a yearly rental OF apou'
/ 100000 which is materially reduced by SUD
/ letting the stores Anna A Caddagan IS
now president and general manager nav
| ing assumed that Office on the death OF hei
! brother. John P. Caddagan, in october, lSDo
| Miss Caddagan was considerably upset last
evening and could not be seen. but II was
learned that she attributed the failure of
the business % the 1907 panic. and also 10
the fact that the centre Of the city had
moved away from the neighborhood Of the
hotel.
Judge Holt appointed Frederick c Nc
LaughIin. d lawyer. of No. 165 Broadway
as receiver, under a bond Of S2o.coo, with
the consent of the corporation He is au-
thorized TO continue the business for thirty
days, ard it is believed that before the end
| of that time there will be readjustment
of the lease and q reorganization Of the
company on a firner basis.
The Hoffman House has for years been d
favorite hunting ground of Democratic poll
| ticians, and when the Amen Corner was
/ forced TO move upon the tearing down OF
! the Fifth Avenue Hotel it went north 10
| the Hoffman House
| The hotel was built in 1854. and extensions
we're added in 1882, 1855 and 1905.