Los Angeles herald., 1891-04-17
A NAPOLEON OF FINANCE
BUT HE HAS TO BOW BEFORE A
FINANCIAL STORM.
Peculiar Methods of Borrowing and Loan
ing Money-Large Liabilities and No
Assets.

William ID. Eckstein will no longer
move in the high circle in which he has
been fitting in this city for about a
year past.
The facts of the case are that Mr..
Eckstein has fallen from grace, and he
will now be forced to retire. To be
brief, he has already retired, not only
from society, but also from business.
1t was about twelve months ago that
Mr.. Eckstein shied his castor in the So
cial arena of Los Angeles. He had re-
Gently married most estimable lady at
Oswego, New York. Shortly after set
tling down here, Mr.. Eckstein cut a
wide swath, socially. He went to all
the swell parties, and became acquaint-
ed with quite number of the social
lions. This acquaintance he afterward
turned to his pecuniary advantage, as
will be seen later on.
Mr.. Eckstein embarked in business
as loaner of money. He conducted
small pawn shop in the privacy of an
upstairs room.
In the matter OF interest charges Mr..
Eckstein was not light. He charged
the merely nominal sum of 10 per cent
month. This was the manner in
which he levied tribute to sustain his
personal establishment in fine style and
fashion.
J Lately Mr.. Eckstein has had an office
at No. 1l9 North Spring street, up stairs.
He seems to have been successful in
loaning all the money that he had, if he
ever had any, and also all that his wife
had. When he had accomplished this
he explained to his friends, whom he
had met at small parties, the magnifi-
cent financial returns accruing from
putting money out at 10 per cent month
to needy and deserving citizens who
had collateral security to hypothecate.
He agreed to pay them 5 per cent.
month interest on money that they
would furnish him to put out for them.
A number of gentlemen who move in
high social circles saw nothing wrong in
loaning money at 10 per cent. month.
They fairly jumped at Eckstein's prop
osition to loan their money at this rate,
he TO receive half OF the interest, and
they the other half monthly. But late
ly various rumors have been current
that all was not going we'll with Eek
stein financially. Yesterday morning
these rumors came to head when at
tachments four deep were filed upon
everything he owned.
Today Eckstein will file petition in
insolvency. The inventory will show
that his liabilities are S25, ,141.76, and
that his assets are nothing.
Among his creditors named in the in
ventory are Henry M. Hamilton, $4,-
675; Marietta B. Grannis, $4,000; f. G.
Calkins, $2241.75; J. H. Seymour, $1,000;
]. A: Thomas, $1,000; B. P. Ward, $175O; !;
California Loan and Trust company,
$1,000; T. Davidson, $1,000; Z. Berman,
$165.
To tell the truth, Mr.. Eckstein did
business about the way Grant & Ward
did. On a $4,000 loan he paid
$l100 interest. On another loan of
$1,000 he had paid $3.50 interest
His mother-in-law, Mrs. Marietta B.
Grannis, is caught to the tune of $4,000.
His wife is left with comparatively moth
ing.
The effect of his failure will be to put
quietus on high society folks loaning
money at five per cent. month, unless
they desire to make their loans person
ally and hang out the usual sign indi-
eating their line of business-three balls.
Eckstein's attorney yesterday assured
a HERALD reporter that the gentleman
had not left the city, although there were
sundry stories current to that effect.
When the petition In insolvency comes
up in the courts, there will be further
developments in the case.