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# MANKATO'S BIG CRASH.
Shrinkage in Values Caused the Hubbard Failure.
Special to the Globe.
ΜΑΝΚΑΤΟ, Minn., May 29.-The largest failure ever occuring in this part of the state took place here today. The Hubbard Milling company made a voluntary assignment to Geo. T. Barr and a few minutes later R. D. Hubbard followed with a personal assignment naming Geo. M. Palmer as-signee Papers were filed with clerk of the court today and assignees will be required to furnish heavy bonds.
Mr. Hubbard has not yet given a definite estimate of assets and liabilities, but places the latter at half a million dollars. The assets will not exceed over two-thirds this amount. The schedule will be filed in a few days, and not until then will the details be known. The creditors are nearly all Eastern banking institutions. None of the local banks will be affected, and it is not thought this failure will embarass any other concern. Rumors have been aficat for some time, that the company was in a bad financial condition, and the failure does not come as a shock to Mankato.
The insolvency of Mr. Hubbard is sa'd to be due to depreciation of stock of the National Linseed Oil company, of which he is a large shareholder. In 1888 Hubbard & Gere owned and operated the large oil mill at Sioux City, and turned that property over to the oil company for 11,000 shares of stock, then worth $33 per share. The decline in value of this stock began in 1892, and the panic of '93 reduced its value, so that today it is quoted at $10 a share. When Mr. Hubbard retired from the management of the company a few years ago the shares were worth $55. This shows a depreciation from $550,000 to $110,000. Mr. Hubbard drew heavily from the milling company to meet the demands made upon him on account of the shrinkage of these securities, which were held by Eastern banks as collateral. During the past four years Mr. Hubbard's properties have shrunk in value over $800,000. He has endeavored to settle with his creditors, but nothing succeeded, and was forced to the assignment of today.
The property of Hubbard & Thompson, who own a large cattle ranch at Miles City, Mont., went into the hands of a receiver some ten days ago. Mr. Hubbard invested $157,000 in this ranch fourteen years ago. It has not paid, and Mr. Hubbard has for several years carried an indebtedness of $200,000 on this property. When the ranch was started 4,400 head of cattle were placed upon it, and it was supposed up to a few days ago that 3,000 cattle were feeding, but the receiver returns only 947 head. Mr. Hubbard places his loss on this investment at $150,000. However, the linseed oil company is credited with his financial downfall. Hubbard & Gere also had $70,000 tied up with the Union Loan and Trust company at Sioux City when it failed.
Hubbard & Pamer, who operate a line of elevators, extending from here to Mitchell, S. D., will not be affected by today's assignment.
Mr. Hubbard has recently withdrawn from the firm of Davis, Hubbard & Co., of Minneapolis, which controls a line of elevators. Mr. Palmer, one of the assignees, being his successor.
The "Big Mill" in this city, having, a capacity of 1,000 barrels of flour daily, will close down tonight.
The assignment of the milling company was made by R. D. Hubbard, president, and his son, Jay Hubbard, secretary. The former this afternoon made an affidavit that the value of the estate assigned is $142,000. In his personal assignment affidavits show the estate assigned to be $105,000. McMillan, the Minneapolis attorney, and secretary of the American Surety of New York, is here, and made out the assignee's bond for Mr. Barr at $300,000 and Mr. Palmer $200,000. The bonds will be made out at Minneapolis and returned here Monday. Mr. Hubbard has always been considered one of the best business men in the Northwest, and is quoted among Minnesota's milionaires. Some months ago he was written up at length in the Chicago papers as the "Flour King" of the world, having been the instigator and organizer of the National Flour Combine of America. He has one of the finest homes In this city, but as only one lot is exempt, is barn and beautiful grounds are included in the assets.
