The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-21
CHURCH POOL TO HELL
DIR. HILLS PAY HIS DEBTS
Plan Under Consideration to Save Big Timber Tracts in
British Northwest and Then Realize by
Marketing the Land.

Hills said Mr.. Ferguson last night, in
answer to an inquiry, "ln May. 1910, at
which time Or. Hillls's financial emhar-
rassments were much more serious THAI
at present. Creditors TO whom he
owed large sums were demanding
payment and threatening suits on over
due notes. lie came to me and entreated
me to lake full management OF his tan
gled affairs and advance and obtain by
loans the money to tide him over the
crisis.
During the Ave years since that date
| transacted all his business by way of
borrowing money. renewing notes and
selling timber, in all amounting 10 about
81, 200, 900. During that time at least 75
per cent. of his obligations were cleared
up The other 20 per cent. remains"
Fronts Once Were Large.
Details Of these transactions during
the years that Mr.. Ferguson handled Or.
Hillis's sp%eculations In wheat and timber
lands are f~ragmentary. II was learned,
however, that prior To 1910 DR.. Hills
made large profits out OF his small in
estments lie was spurred on by these
minor successes to great investments UNI
III HI had borrowed several hundred
thousand dollars from his friends At
one time, 1t is said. he borrowed large
sums on notes to make first payments on
timber contracts totalling $500, O00.
The present crisis in his financial af-
fairs, according to authentic sources, was
precipitated by two factors-his failure
to meet notes for personal loans from his
friends and the fear OF holders Of bonds
on the Alberni timber licenses which Dr.
Hills owned that the Canadian Govern
ment would foreclose the property be-
cause OF non-payment OF the license Zee
of $40 for each of twenty-five tracts.
Gossip resulting from Dr. HillIss slow
ness in meeting his notes and fear OF the
~bondholders that their equity In the lands
would be wiped out led to several recent
meetings OF the b%ondholders and the foy-
nation of a committee OF four To- reach
an adjustment. This committee consists
Of Frederic W. Hinrichs, DR.. ~llillis's
present attorney Frederick O. Corning,
l.. \. Rowloy and a Mr.. Bcale.
The 500. 900 bonds on the Aherul
timber licenses are held by about eigh-
teen or twenty persons, mostly mem
bers Of Plymouth Church, whose hold
ings vary from 81 600 to $4,000. MIR.
Ferguson held $40, 600 Of them a. one
time, accepted for services to Dr llillIs,
but they are now held by Or. Ross,tcr
W Raymond, Mr.. Corning said yes
tcrday that a pool Will probably he
raised TO pay the license fees To canada
to prevent default and the lanI sold ia
as favorable a market a. exists There
have always been "ulbbles" At the tim
her tracts. said Mr.. Corning, and the
whole property Is worth far more than
the amount OF the bonds.
The first meeting of the hondholders
was not a peaceful one. The special
committee Of four. however, expect to
hold a meeting very soon. Most Of the
"bondholders are kindly disposed to pr.
Hills, but II Is believed that the same
does not hold true OF all pr. HlllS'S
note holders and personal lenders. Or.
Hills owns no stocks or bonds, IL IL
said, to secure his alleged total indebted
ness OF 100000, except the timber IL
censes on the Alberui tracts.