The morning call., 1893-06-11
WANT THEIR CASH
Loan Society Money in a
Seizure.
Santa Clara People Interested i'm
DiStiiler Jarvis Vio-
Iation.

For two days the offices of Special Agent
McGlachln and Internal Revenue Collec-
tor Quinn have been besieged by a depu-
tation of citizens from Santa Clara. They
want to recover some of the wealth in
volved in the seizure Of the G. M. Jarvis
Company's distillery. made last Wednes-
day by Assistant Special Agent B. NJ.
Thomas. From their representations il
appears that an extraordinary state of af-
fairs exists and that never were so many
innocent people involved in Government
seizure.
Jarvis has been doing business for years
in Santa Clara County and has several
times had brushes with the Government
inspectors. He has always succeeded in
evadiDg heavy losses in the penalties i'm
posed upon him. all of which accrued to
his reputation as being the "shrewdest
distiller in the West" Still the inroads on
his capital were heavy enough to leave
him nearer bankruptcy than any one sup
posed.
There is in Santa Clara a bnilding and
loan society with considerable capital ill.,
vested. 1t is composed of conservative
business men. They loaned Jarvis money.
He wanted TO build On lot worth about
$500 and he asked for $1,000. A mortgage
doled out to him as he built. He wanted
1t faster. but the society was sagacious
enough not to let him have it, so the
money was actually put in the improve
ments. On this loan he repaid $500. max
ing total balance nf S1700 against him.
All would be well yet with the Santa
Clara Building and Loan Society in the in
vestment if the Government officers had
not detected him manufacturing brandy
and wines in violation to revenue laws.
His distilery was seized and his property
cOnfiscated to the Government. The Gov
ernment in case of seizures has first lien
on property. IL recognizes no mortgages
as of prior value. In case of condemna-
tOn and sale what the Government does
not swallow up may go to the mortgage,
but in the Jarvis case there would not be
enough to satisfy the Government, let
alone allow the Santa Clara society re-
cover its S1700.
At the moment of seizure the mortgage
was so much waste paper, and the society
came TO learn of it. Since then it has been
moving heaven and earth to get the Gov
ernment to compromise that its loss may
not be so heavy.
Special Agent McGlachlin and Collector
Quinn are inclined to look with favor on
their request, as in any event Jarvis will
be completely bankrupt.
Another cause for excitement over the
Jarvis seizure iS the revelation that fol-
lowed as to the age of his brandies. Jarvis
has been flooding the country with adver-
tisements stating he had fine product of
1877 brandy, properly aged.
Many orders came in and there was a
booming trade in that brand. When the
seizure took place there was none found
and it developed that when an order for
1877 brandy came 10 the brandy was made
the next day and shipped the third. That
is the STYLE of stuff tipplers have been in
dulging in.
Suspicion has been pointed toward Jar
Wis distilery for years and he has been
closely watched. He did not renew his
bonds in May and watch was put on
him.
On the afternoons of May % and % the
distillery was in operation and on the
night of May 90 and June it was running
again. On the morning of June a
large guam tity of brandy was taken to a
livery stable and compounded into the
same form as 1877 Jarvis brandy. The
livery stable was not the property of
Jarvis. but 1t vas seized with the dlstil-
lery.