The sun., 1895-01-04
LICHTENSTEIN CREDITORS.
DRF GOoDS MEN Discuss GO-As-
HOU-PLEASE INSOLVENCY.

past IeW days inc IlCntcuStCtn failure npS been
discussed In n spirit of criticism and candor.
vt hns been the cause OF very great deal OF
discussion" said member OF large Broadway
6rm yesterday. and think the part the Ehr-
ichs have taken In the affair will not raise
them In the estimation OF the business commu-
nifty"
II have just been talking with fellow cred-
Cor OF the Lichtcnstcins," said a member OF a
big Worth street firm, and ho told me that, al
though he was sorry to lose his money, he did
mot blame the Ehrichs, because they bought
where they could buy to advantage, as most
people do"
tour among some of the largest hounes In
The dry goods district, including Tefft, Weller
g. Co., IT, y. Clanin * Co.. Sweetser, Pembroke
Il Co., A. ID. Juilliard d Co., and people con-
nectcd with the lines of business In which the
Lichtenstcins dealt, developed yesterday va
piety of opinions Us to the laws which permit
Such failure, n considerable unanimity as to
Che Lichtenstens' act. AMI a divergence of
views regarding the advantages OF II bankruptcy
law which would prevent such q transaction.
Most Of the firms called upon have had both the
Lichtenstcins and the Ehrichs for customers.
From the number of firms who small cred
itors" of the insolvent frm-the amounts be-
ing so small that no efforts have yet been made
40 enforce collection-it appears that the 1.ich-
tensteins distributed their favors pretty freely
among largo houses whose names Will not ap-
bear in the legal actions against them.
:. IF our claim was large one" said one OF a
Broadway jobbing firm, II think I should man
kge to get back some of those goods from En-
tichs. The Ehrichs customers OF ours. too,
gu. Out nave DO sympathy with that sort OF thihg'
honest and in that lies our protection. And we
want TO keep it This thing is of very
occurrence, and to the laws which are said to
permit 1t, think should rather take
ehances under them than have bankruptcy
Jaw. There objections to preferences but
here are times when honest ones are al, right
end merchants views OF those are iikely 10
Ssa failure '''' ''''' ~ - '' - INV ''''''
T.,raaon a., o,, ,,,,uu,.ou ,, ,r.,,,o.
Knight as well say good-by to his claim in the
majority of instances. the EXPENSES were so
heavy and the delay was SO great. There are
Abuses under the present laws also. but think
The merchants as a whole would probably pre-
Ter these laws to the old bankruptcy law. 1say
a our consdencs in each other that enables us
ON. connaense IN eson es o.nef 'na. enables as
common thing in case Of failure in a distant
City, for the New York houses 70 let one man
them, the other houses abiding by the decision
Of one; l think the houses n the dry goods
and while we are ali Interested in q case Of this
smps slnS do not fear the influence OF the bad '1-
think our laws should be more stringent"
the Massachusetts laws. but | think 1 am not
ready to favor bankruptcy law. We are small
creditoTs OF the Lichtensteins ana we sell goods
t9 The The Ehrichs and know so little Of the merits
which Is said to have . system OF locking after
It's debtors that renders II independent Of the
a law whish would force Ills Arm to share
equally with a firm less vigiant In its collec-
ing to take risks in aiding young merchant
seem fair that that firm should be a preferred
creditor have sd no direct lire , knowledge Of the
heard at former times and what is said now |
tho that nt ssy hd n
With this they could discount their bills and 50
ap heeP In Good se
sellers get careless" ''sAs' SO'. '''''
Ihat Is lust the trouble SAID Hebrew
ment II think ne Lichtensieins were prac-
Gcnl,y lnsoivent before they went to twenty
roWed to If Sn DO
away with preferences you VIII stop all that,
and The banks viii % not lend 'ift II they eannot bs
preferred creditors See all the banks the I.chten
creditors by diseountins Their bills With Sor-
row,sd money o6tainsd from ON the banks There
u iegttinate oorroWihR. anu perhaps tnero are
legitimate preferences, but my business ey-
perience has led me to the belief that the people
Will eventually stop the preferences II only be-
cause OF the part the banks play. For this
thing Is SO very common, SO much the regular
Thing, and the failures come SO often. making
the banks stand losses IN each case In spite OF
Sheir 9eine preIIerrea creditors. that the banks
are going to feel the effects OF 1t some time, and
when banks 1all II Is serious thing FOR the peo-
pie. ., A..
T. A. member or another broadway firm said
:. ut W. snopIu nave hstionai bankrupLcy law TO
1aclntate business. we never know where We
stand under the state laws. The best Informed
lawyers here have to write to their correspond
ents IL we ask ABOUT credit laws In other states.
and Il there was fraud In the Liohtenstein fail
nre the LAWS should be so drawn as TO make that
impossible. They owed us little, and Ehrichs
are our customers too, and do not care to have
bur firm figure in q statement on this subject"
II was said at Sweetser, Pembroke & Co.'S
that Mr. Joseph II. Choate was engaged, and
ha hRA fOrR Ray bnn