The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-03-03
A. Lusk s. Co. Again in
Trouble.
ANOTHER SUIT To- DAY.
Eastern Creditors to Push Their
Claims.
WILL FIGHT THE LEGALITY.
The Big Fruit Corporation to Claim
They Are in the Hands of a
Permanent Trustee.

A. Lusk 81 Co., wholesale dealers in
canned goods and dried fruits. at 10
Davis street. aud also proprietors of the a.
Lusk Canning Company at 423 Brannan
street, are again in financial troubles.
Thursday afternoon an attachment was
placed on the Davis-street place, which is
used as mercantile warehouse, and yes
terday another was placed on the factory
on Brannan street. Both are under the
same suit. brought by Eugene C. McShane,
clerk in the office of General John II.
Dickinson, as assignee of claim amount
ing to S4113. on promissory notes from the
Pacific Can Company.
To-day another attachment will be put
on both houses. and will include a gar
nishee suit against the Nevada Bank,
with whom the company does business.
This suit will be brought by General Dick
inson, as attorney fer several Eastern
creditors.
At the Office of the company all infor-
nation was denied. Vice-President Henry
Jacobs says the attachment was served
without prior notice, otherwise IL would
have been averted. The claim OF the
Pacific Can Company, he says, is all
right, but their method of recovery is at
fault. The corporation, he says, passed
into the hands OF receiver some two
years ago, and in consequence OF that the
suit is illegal. 1t is the intention, he says.
TO raise the two attachments of the Pacific
Can Company by bond and proceed
with the business while the suit testing
the legality of the attachments is being
tried
Whether or not the suits to be Instituted
to-day Will change the plans he refused to
say. Regarding the present assets and liza
bilities he positively declined to speak.
The business of A. Lusk 81 Co. was
started twenty-seyen years ago by Albert
Lusk, and in it he continued as sole pro-
pTietor until 1888, when he sold out aud
corporation was formed composed of
IsidOr Jacobs, president; Henry Jacobs,
vice. president; James COffey. secretary
and treasurer; j. l.. Mcclure, A; +. Ten
ney and Emanuel Strauss. The price
paid was $4,000. one-third of which was
cash and the balance in notes.
In the latter part of 1891 the corporation
became involved. A large amount of pa
per which had been renewed fell due and
they we're unable to meet it. A statement
of their affairs was submitted to the credi-
tors. 1t showed that they had assets to
the amount of SAG. 1877 %, with liabilities
SS7. Cos "a, leaving net surplus of $685.
593 %.
Confidence for few months was re-
stored. but by their failure to fulfill the
obligations made then TO aid them as they
became due they again found themselves
in trouble. In December, 1891, few
months after the statement had been SUBJ
United to the creditors, they were In diff
Guilty, and Immediately a number of at
tachment suits involving large sum were
begun.
An investigation that followed by the
creditors revealed q statement showing as
sets $685., 5SS 10. Liabilities S451. $50. OF the
amount put down for assets $500, 10 was
unsecured. After several weeks Of wait
inn md. ,h.,r Of 90
itors compromise was nnaliy effected
whereby the insOlveDt corporation settled
with its creditors for 10 and % cents on the
dollar and again took charge OF the busi-
ness.
At that time President Isidor Jacobs
stated that no statement of how the cor
poratlOn stood after the settlement would
be given out, but that in future they would
buy wholly for cash.
1t was Immediately after this trouble
that James Coffey, the secretary and treas
urer of the corporation, was appointed
trustee OF all the assets, and since that
time has occupied that position. ALI the
real and personal property of the company
was then decided TO him in trust, and all
since disposed of has been under that
deed.
About the middle of December last
Albert Lusk brought suit against the cor
poratlon TO recover S901 under an attach
ment. The claim was disputed, and after
the attachment had been raised under
bond a suit was Instituted by A. Lusk d
Co. against Albert Lusk, claiming $500
due them from the defendant. The suit
of Lusk against the corporation has once
been tried. but as yet no decision has been
handed down.
Lusk's claim is that the amount due
him Is an unpaid balance of purchase
money which be has been endeayorIng to
collect ever since the last amount became
due.
During the life of the corporation. since
the trustee has been appointed, the bust
ness has been carried On under the STYLE
Oh the corporation, and now an interesting
ana complicated point in law is likely TO
come up. That is, can the debts OF a cor
poration be collected by attachment while
the corporation is in the hands of a per-
manent trustee?
General Dickinson, attorney for the at
tachlng creditor. when seen at his Office
yesterday and stated that the CORPORA
tlon would contest the attachment on the
grounds OF Its being illegal and without
previous notice. said:
~ nave collected the account for the
tactic Can Company from Lusk IL Co.
1or several years, and always have had
trouble As for their not having notice, |
nave written them twice and they have
Deen IN 10 see me as many times about H.
The last time they called was TO nut it of
indefinitely, and then told them would
attach.
Will bring an attachment suit on
everything l can fad and test whether or
not they can place their business in the
hands Of trustee and contract debts for
which they cannot be attached.
have several claims from Eastern
creditors and will bring suit on them to-
morrow"
The business of both corporations Is
Delng conducted as usual under the direc
lion Oh the Sheriff, whose deputies are in
charge. 80