New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-10

ton was made Thursday nlght' "hen,
rfter conference with lawyers ana
others representing the largest interests
involved. IL was decided that Tor Zap
tain Greenhut 10 attempt TO continue
ee he had been was TO invite greater
disaster later. Accordingly, Cadwaia-
Ccr. Wickersham & Taft. representing
tho Monmouth Securities Company:
presented a petition TO Judge Learned
Hand Yesterday morning asking that
RECEIVERS be appointed. Benedict j.
Greenhut. treasurer Of the securities
company. signed the petition, which
was agreed 10 by Paskus d Rose rs
counsel for the J. B. Greenhut Com
prny.
Unable 10 Meet Debts.
In this petition II was asserted that
the Greenhut company was unable 10
meet debts due. that suits had been
brought and had been threatened ana
that a receivership was necessary 10
protect the interests Of all. Current
liabilities were placed at S3,5OO'OOo ~
this netition and assets. exclusive OF
real estate. at S7,465,OOO. ,..,,
Judge Hand at once appointed VIII
lam A. Marble. president OF the Mer-
chants Association, and Judge Walter
r. Moves receivers. with authority 10
continue the business. The receivers
were instructed also TO notify creditors
10 file claims within sixty days.
Immediately afterward S. S. Myers,
rcpresenting few small creditors,
fled a petition in bankruptcy. Myers
d Goldsmith also filed a petition. Inc
equity proceedings serve az stay TO
the bankruptcy moves.
Explaining the equity proceedings,
Cadwalader, Wickersham & Taft issued
statement to the effect that receiv-
ership was sought in order TO conserve
assets and pave the way for reor-
rruization Of the business. This was
the tenor of q statement later issued
bv Paskus & Rose. counsel for the
Creenhut company. "Mr. Greenhut and
lis family" the statement concluded.
Gown a majority Of the securities OF
the company, in addition to being large
creditors for money advanced. II there
fore goes without saying that II viii
be his aim TO make every effort TO
bring about its speedy reorganization
and to continue the business as here
tofore without interruption"
II could not be learned, however, how
far Mr.. Greenhut will 90 in order TO
fring about this state of affairs. At his
Office he was inaccessible and at his
home he was "out."
The Monmouth Securities Company,
through which he holds most Of the
C,reenhut Company securities, was rep
resented at a conference with the re-
ceiyers Yesterday afternoon by Joseph
VI. fairfield. Of White e. Case. James
y. Rosenberg, Of Rosenberg, Lewis &
IL "a
Rounds, Schurman & Dwight, COM
mittee of merchandise creditors, Of
which Otto l.. Dommerich is chairman.
The principal thing agreed upon was
the necessity of placing accountants
upon the books to determine as closely
as possible the actual condition of the
company.
The Greenhut Company was founded
IT, 1896 by Henry Siegel as q branch of
the Chicago house of Siegel, Cooper 6
Co. I'm 1901 Captain J. b. Greenhut
succeeded Segel at the head Of the
company, Siegel retiring with a fortune
estimated at 100000. Six years later
Greenhut, Inc, was formed TO take over
The store on the other side Of Sixth
venue, just vacated by Benjamin Alt
nan. Three years later the Greenhut-
Siegel- Cooper Company was incorporat-
cd for S6,000,000 10 take over the two
businesses. As such the business was
conducted until after the Henry Siegel
failures, when the title was changed 10
the J. b. Greenhut Company.
The Greenhut company has not paid
dividends Of late years, and Mrs. Winl-
fred Cooper, Of Chicago. a minority
stakeholder, has been lighting in the
courts for a long time past for per-
NJ o. 20 hn
other relief. She lost her action IN
the Supreme Court and appealed.
She charged that Captain Greenhut
paid himself salary Of $4,000 a
year, that 3. J. Greenhut had a salary
Of $4,000 a year and other salaries,
declared by her 20 be excessive, were
paid 70 other relatives and friends.
She also charged that there was no
consideration given for $5,o00,000 in
bonds issued to the Greenhuts.
Shopping Section Passing.
The troubles Of the Greenhut com
pany were interpreted in trade circles
yesterday as meaning, with the closing
Of the Simpson, Crawford Company
store, the passing of the once great
Sixth Avenue shopping section, only
few years ago the greatest retail sec
ton i'm the world.
The heyday of the lower Sixth Ave
nuc shopping centre was about the
time "Thc Big store" Of the Siegcl-
Cooper Company. now the Eastern
store Of the j. b. Greeuhut COMPANY.
wGs opened. which was on September
j. 1896. The opening was on 2 Sat
friday evening at 1880 o'clock OF this
event I'm the drycoods world a spec
tator wrote: when the doors closed
at 10 o'clock Sixth Avenue, Eighteenth
end Nineteenth Streets we're still
black with crushing, pushing mass Of
humanity, striving TO get into the beau
| t.ful building"
/ 1t was called "The Big Store" be-
/ cause IL contained 7G5.000 square feet
/ Of floor space and was then considered
/ TO be the largest structure of its kind
/ In this country, fronting about 1874 feet
/ on Sixth Avenue and about 400 feet in
/ both Eighteenth and Nineteenth streets.
/ The site and building were estimated
/ to be worth about $4,000 900
4 r. H. Macy E. Co. was the first big
store 20 leave the lower Sixth Avenue
section. Soon aftcrward the late Ben
Jamin Altman began the difficult task
Of becoming the owner Of the easterly
hlcck front I'M Fifth Avenue from Thir-
ty-fourth 10 Thirty-ffth Street Mr..
Altman erected on the Fifth Avenue
site the department store which bears
, rs name.
Later James McCreery & Co.. for
years at the southeast corner Of Tween
ty-third Street and Sixth Avenue,
joined the Thirty-fourth Street shop
ping colony, and their removal was soon
followed by important changes in the
no Hrr.l L.. -. g..