February 1, 1912

Stories of the financial woes continue:

CAFE BEAUX ARTS RECEIVER

A. H. Spilling Appointed To Continue the Business for Fifteen Days.

Application for bankruptcy was filed yesterday in the
United States District Court against the Bustanoby brothers, proprietors of the Cafe des Beaux Arts, Fortieth Street and Sixth Ave., and the Chateau des Beaux Arts in Huntington, Long Island. On Tuesday the firm made an assignment to its creditor. Two of the brothers, Andre and Jacques, comprising the firm, say that their troubles are due to their brother Louis, who has left the firm and is now running the Flat Iron Building Restaurant. Judge Holt appointed yesterday Augustus H. Spilling receiver with authority to continue the business for fifteen days. It is alleged in the petition that the corporation on December 18th permitted a creditor to obtain a judgment for $3,000 on which $350 has been paid. A chattel mortgage which Andre and Jacques Bustanoby gave to Louis for $77,000 in place of payments due to him on the interest in the property which his brothers had agreed to purchase, was
declared to be for an illegal consideration and to constitute a preference in his favor over other creditors. The unsecured liabilities were put down at $165,000 and the assets at $50,000.