The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-09-09
LEEWAY FOR THE LIEBES.
The Cigar Men Are Respited
by Their Creditors.
Herman Liebes Attached Only to Prevent the
European Creditors From Becoming
Too Clamorous.

Liebes Bros. & Co.. the wholesale firm Of
tobacco-deaIers which suspended during the
early part of the week, will resume opera
lions on Monday.
The information that the creditors were
willing to allow the firm to resume opera
tons came by telegraph yesterday from the
East.
1t appears that the firm does not owe a
dollar to anybody on this coast except to
Herman Liebes, and he is amply secured.
Its creditors are all located in Europe and
all told the pressing liabilities of the firm
do not exceed 100000
A firm in Amsterdam, to whom Liebes
Bros. & Co. owed about S45.0 O0 pressed its
demands. with the result that Herman
Liebes, who is now in New York City, was
compelled to put an attachment on the
firms assets in this city so as to secure him.
self and protect his brothers.
When the Amsterdam, firm was made
aware OF the solvent condition of Liebes
Brothers & Co.. it at once agreed to give six
months time on their bills, and other firms
to whom Liebes Brothers 81 Co. owed
smaller amounts agreed to give the same
extension.
AS soon as Herman Liebes was assured
that his brothers interests were secured
from the assaults of their creditors, he at
once telegraphed to Jacob sLiebeS in this
city that matters were all right and that his
alta chment would Immediately be released.
Il knew we would come out all right.
said Jacob LlebeS yesterday, as he exhibited
his brothers telegram to CALL reporter
ut was merely temporary stlingency In
the moaey market that embarrassed us.
In fact. / should say that it was our
own negligence in trusting the Amsterdam
- s1x "A
for more time until the difficulties with
which, we were involved with the customs
officials were settled. But it seems from
what / can learn they became clamorous
under the suppOsition that Herman would
advance the money we require.
I'VE do not owe q dollar In this city, and
have always tried to conduct our business
SO as to avoid financial troubles.
"As soon as our case with the customs
people is settled we will be able 20 pay up
everything AID have big margin remain
ing"
The firm has now over 600 bales OF Suma-
ira leaf stored in the bonded warehouse
] awaiting the decision Of the Circuit Court.
! The bales weigh 80 pounds each and are
valued at 81 pound. making an aggregate
| of $4,000 tied up.
Then again the duty Of 81 pound on 146
| bales of Sumatra leaf taken from the Gus
| tom-house was paid under protest.
AS the duty is only 50 cents a pound on
! tobacco for filters, as the importation is
| claimed to be by Llebes Bros. u Co.. an
! additional cost of 81 Go pound has been
paid by the firm, which amounts to about
| $4,000.
| Seven years ago Liebes Bros. & Co., were
| the largest manufacturers OF cigars in the
| city. They employed between 500 and 600
hands and made from 10, 0o0, 0C0 to 20, 000, 600
| cigars year.
| Three-fourths of their goods were sent to
| Eastern markets, as they had special
| freight rate of 80 cents. But the railroad
| company raised the rate and then the labor
| unions stepped in and boycotted their goods.
The firm then began 10 decline and bust
| ness fell off rapidly.
In order to recoup themselves the Liebes
| brothers got franchise to supply water to
| the city of Zacatecas, Mexico.
They expended thousands of dollars in
surveys and engineering estimates.
They ioatsd stock company and re-
ceived subscriptions from which they wo uld
have cleared aquarter of million, but that
the Barring Bros. failure caused a panic in
the English market.