The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-24
Attributed Mainly to the Ex.
tended Litigation Over
Insurance.
THE LIABILITIES AND ASSETS.
The. Latter Expected to Fall Consider.
ably Short of the Firms
Indebtedness.

Buyer & Reich, the old and well-known
importers of fancy goods, hosiery,
worsteds, ribbons, etc, at 221 and 223
Bush street, were yesterday forced to sus-
pend business, whether temporarily or
permanently will only develop when a full
statement of their affairs is obtained and
presented to their creditors Cor their con-
sideration.
The suspension was caused by the levy
ing of an attachment by the Sheriff on
suit brought by Daniel Meyer, the
banker, to recover $31, 585 ~. This
amount includes most OF the local claims
against the embarrassed firm, which are
assigned to the banker to simplify pro-
ceedings In detail these claims are as
follows: Daniel Meyer cash loaned, $500;
London, Paris and American Bank
Olmited), loan, $4,000; S. w. Rosen-
stock, loan, $500; Coates Thread Com
pany, goods purchased, $240S A; Edward
Kalisher of Steinberger Il kalisher, for
services, $500; Clarke Mile End Spool Cot
ton Company, goods, $201 80; California
Cotton Mills Company, goods, $475 Is.
Among other local claimants are Louis
Taussig and Louis Hauser, each for $500,
cash loaned.
So far as can now be ascertained the
liabilities of the firm are said to be some
thing over 100000 while it is expected
that the assets will reach not to exceed
$65, 900, comprising stock in trade and
book accounts.
Much the larger portion of Indebtedness
is to Eastern and foreign creditors, to
whom is due some $1,000 or more. These
were all communicated with yesterday by
Julius Kahn, the attorney for the unfor-
tunate firm, and the situation described 10
them.
The firm is composed OF Leopold Reich
and Charles Buyer, and both members
were SO unstrung by the untoward circum
stances the firm is now surrounded with
that they referred all inquiries regarding
their affairs TO their attorney, who made
the following statement:
The firm has been thirty years in business in
this City and have always borne an honorable
name in the mercantile community. They be-
gan business on kearny street, near Suffer, as
retail dealers in fancy goods, and about fifteen
years ago went into the wholesale trade.
a couple of years ago they were so unfortu-
nate as to suffer heavy losses by fire, and owing
10 an ili-founded report that the fire was of in
cendiary origin the insurance companies re-
fused to pay the insurance moneys. The result
was period OF litigation extending over TWEEN
ty-one months. On account OF this the business
of the firm suffered materially: The fire nat
urally caused loss of more or less of their reg
ular business, and the failure to receive their
them seriously. Not only were the payments
delayed for an unusual period. but in some of
the cases the full amount was not recovered.
AS a result they were forced during this trying
time to make loans TO tide along, and the In
terest on these were an additional burden they
were compelled to carry with the many
others.
They endeavored to weather the storm by
every honorable means available, but the
crisis came to-day when they were attached.
The desire of the firm has always been to deal
fairly with everybody and on their solicitation
the local creditors have consented that the
Eastern creditors shall not be frozen out, but
that all the creditors shall be treated alike.
All expedition will be used to arrive at def
mite Information concerning the firms affairs.
An inventory OF the stock viii be taken and
the book accounts will be examined and then
some basis OF settlement will probably be
arranged. Of course the proposition is that, if
possible, the firm shall continue in business,
but at all events they will endeavor to secure
in this have already been promised the CO.
operation of their local creditors. 1t viii be
several days before the exact condition of
things can be ascertalned.
AS showing the estimation in which the
firm is held it is only necessary to call at
tention to the fact that the heavy cash
loans which figure in the attachment pro-
ceedings were made without other security
than the firms notes.
An additional feature that served to
hamper the members of the firm was the
prevalence of serious illness in each of
their families.
To the mercantile community the failure
was a great surprise, for though it was
known that they were hard pushed at
times, pending the litigation over their in
surance, it was generally believed that the
receipt Of their insurance placed them in
easy circumstances.