The morning call., 1894-01-07
CREDITORS ANGRY.
The Steinbach Failure to
Be PrObed.
A CRIMINAL PROSECUTION
Against the Bankrupt JeweIer
Will Follow.
A CRIMINAL PROSECUTION
EISENBERG'S
NEGLECT.
1t Causes Comment and VIII Result
in an Attempt to Collect
From Him.

circumstances have come to the surface
during the last few days in connection
with the failure of j. A. Stein bach, the
Market-street jeweler, which N all proba-
bility will lead to the institution of a GRIM
inal prosecution and several civil suits.
An informal talk was held among some
of the San Francisco creditors yesterday,
the result of which, it is said. would be
the arrest Of j. A. Steinbach on the
charge of defrauding his creditors through
misrepresentation. and individual civil
suits against A. Eisenberg of the firm of
A. Elsenb berg & Co. to recover the amount
due the creditors from SteinDach on &C
count of his non-fulfllmen: of the duties
he EiSenberg) was chosen TO perform.
This determination was brought about
by an investigation into the affairs OF
stein bach, aused by his filing an addi-
tional list of creditors, representing claims
to the amount of S9011, which he had pre-
Viousiy denied or rather not stated they
existed.
The beginning of this UNEXPECTED end
was several years back when Stein bach
entered politics and began a successful
race for a seat in the Board of Education.
Then and later he contracted debts, which
became the burden of his life. Four years
ago be was q pawn brokers' clerk without
and q substantial acquaintance with a.
EisenbeTg. 1t was his ambition to own a
jeWelry- store of his own and with this idea
he went to Mr. Elsenberg. Arrangements
we're made whereby Steinbach could en-
bark: the capital and stock being fur
niShed by Essen berg to the extent of
$4,000. The only provision was that
Stein bach should purchase all of his goods
from Eisenberg. This arrangement con-
1inued for two years. when Mr.. Stenbach
discovered that his creditor was charging
him too much for his goods. Then he be-
gan TO deal with other San Francisco
houses and also in the East. His store
was next door TO Ed Lunstedt's saloon
and wineroo ms and soon the two men be-
came fast friends. When the labors Of
the day would become exhausting Mr..
Steinbach would repair to his friends
saloon and indulge in recreating game of
cards, sometimes poker. sometimes some
thing else. AS time wore on the great
American game became more seductive to
the detrlment OF business and surplus cap
ital alike.
While not actively engaged the old in
terest in politics still kept Steinbach's
hand in practice 10 a ward" way. Bust
ness began TO fall off and got cash shorter
until about year ago the creditors claims
claims could not be met promptly. Elsen-
berg wanted some money. Having raised
all he could from his parents ana outside
friends, which had dwindled away in
various channels without liquidating his
outside debts, Steinbach sought relief IN
borrowing small sums here and there and
where he could.
In July last, while Mr.. Eisenberg was in
Europe, a meeting of creditors was called
and statement of Steinbach's indie bted-
ness was given them. Although Mr.. Stein
bach stated that it was the total amount
he owed II did not contain numerous notes,
due bills and verbal obligations for money
Fzr
ing TO nearly $4,000. On his Tepresen Ia
tion that this statement covered his total
liabilities the creditors, local and Eastern,
signed an extension agreement. This
agreement was not lived up 10 by Stein
bach. No money was paid by him, so on
December l another meeting was held, at
which the same list of liabilities was pre-
sented and an offer of 80 cents on the dollar
in settle ment, In Installments, was submit
ted by Mr.. Eisen berg. The settlement was
accepted and Mr.. Eisenb berg was chosen to
represe all Of the creditors in the collec-
ton of the claims. The first payment fell
due Oh January /, and the agreement was
such that if it were not met promptly
IEisen berg was to take possession of the
stock.
When Mr.. Eisenberg returned from
Europe after the first agreement was N ade
he was chosen TO take the same position as
under the second agreement. When the
payment; under the first settlement began
TO fail in arrears a consultation of cred
jtors was held'and the following letter
WAS sent to Elsen berg by Louis Miller Jr.
SAN FRANCISCO. Nov. 6, 1898
r. Eise,1berg: You have taken charge Of j. A.
Stein bach's affairs. What have you done?
NoIbingl He has failed TO pay first and second
tnstaImeDts. You can't even tell me what he
bas sold Do you call that business? When !
signed the paper for my 1oDbtng account it wa.
On condition l was TO receive the 1ObbiDg IN the
FIXTURE and to pay at the end OF the month
He then told me be could not pay US If h. paid
me, aud where is the money gone TO? He said
he got time till January l, 1894, on l. Gia-
cobps account, so you can see that you are q
very poor manager CID you tell me what
goods have been sold? | notify you that this
Thing has 10 stop. l will hold you responsible
do not wish 10 make you any trouble. as
have consulted an attorney. L. MILLER JR.
Mr.. Miller. in speaking of the matter
yesterday, said:
The failure OF John a. Stein bach is
peculiar. 1t looks very much as if TIE
whole thing had been cut and dried.
Eisenberg was elected TO represent the
creditors, but has taken no steps what
ever to protect them. Instead Of taking
possession Of the store on January l. as
he should have done, be let it drag on.
He was to look after the money from
Christmas trade and apply it on creditors
claims. Not cent Of il has been turned
over. He would not even ask Stenbach
for money. BE asked me to write a
harsh letter TO him that he might show il
to Steinbach and tell him that we were
pushing him (Eisenberg). He did not
want Steinbacb TO think that be was
crowding him. When L would go to him
and ask what he had done he would te II
me be was attending to it. he did not at
tend to il at all, but apparently was very
easy with him.
ut was understood that when Stein bach
gave his notes Eisenberg was to ndorse
them, but later he refused 10 do it upo u
the advice of his attorney. 1t looks yer y
much as though Eisenberg were at least
friendly to the man whom he started in
business for some reason, but ID the gene