The San Francisco call., 1897-09-12
Is Instructed by Asooll & Go. to
Brand the Story as a
Falsehood.
4 Big SUIT FO2 LIBEL PROMISED
Business Men Say the Whole Story
Was Untrue From Beginning
to End.

The yellow boys have been at it again
and as usual they have burned their
fingers. There is mourning in e Hearst
rookery on Mission street because of an
other attempt Of the journalism that is
saffron to outdo itself.
1t Is all owing TO one of those phenom-
email scoops" that the ochre talent has
been writing so much atoat Of late. This
time the grapevine ''yele ,raph' worked
from the south instead of from the klon-
dixie, and it brought the news that the re-
public Of Guatemala was so hard up that
nguratively speaking the aristocracy was
about 10 adopt a diet of beans.
The country was painted as being in the
throes OF a revolution and bankruptcy was
the hobby of the hour. 1t would have
been all right had this narrative of disas-
ter and ruin stopped right there. But,
alas for the enthusiasm of the yellow boys,
they proceeds ed to give a detailed list OF
failures, and that was their undoing.
On its face it seemed like plausible tale
and every body congratulated themselves.
Yesterday the barometer dropped. The
cables from Guatemala brought instruc.
tions TO Castle Brothers to demand a re-
traction OF the Story at once and institute
a suit for libel. Ascoll & Co. are the peo-
pie that feel aggrieved.
Hearst's organ had this house down in
the list OF failures, with liabilities of
81 SOC, 600. ana nobody was more surprised
than the local GualemaIan colony to
learn few days ago from the Examiner
that this business firm had gone TO the
wall. Louis Hirsch of Castle Bros, who
are the local agents OF Ascoll & Co., at
once ca bed 10 Guatemala for information.
OF course, it is unnecessary 10 say that
AscolG & Co., bad not failed, and their
caDlegTam in reply TO their agesis yester-
day morning was a very en- phatic denial 10
The story OF the oehre boys.
Louis Hrsch yesterday waited upon
the local re prese natives of Hearst and
demanded an immediate retraction. At
the same time he consulted the law firm
of Reinstein & Esner, with view Of
bringing suit for damages. OF course
Hearst will retract. That is his policy
when cornered. II is the only avenue out
OF the dilemma.
Among the houses that the Ex miner
rel resen ed as in the throes OF bankruptcy
fol millions are: FREDERICK Chaeon, En-
rique Neutze, L. E:s-ed & Co., Bauer IL
Co., Victor Mathew Z. No one in this City
has learned of the ilure of anv one of
these people recently. Matheu 2 is not
q merchant at all, a represented by the
Examiner, but coffee grower.
Some years ago, on the collapse OF the
boom in Central America, ne found him
self with more acres than dollars and gave
his note for five years, which was aece pied
by his creditors. Eyssen & Co. were in
trouble year ago, but they arranged to
lay everything in full. Neuize is a land
owner, but has never assigned, as far as
can be learned. Fred cirque Chacon has
good credit here, and neither the banks
nor the business houses.have ever heard
that he was in financial difficulty.
The object in printing such sensa-
tional story is rot understood by San
Francisco business men. As far as the
local Guatemalan colony is concerned
they say il is q faIsehood from be inning
to end, and that its effect will be disas
trous 10 the large trade that has hereto
fore been carried on between this City and
Central America.
Rumor has II that 1t is game OF Long
Green" and that the Hearst stuffed club IS
out Tor blackmail against he southern re-
public This is the construc ion put upon
The matter by some OF the wholesale mer-
chanis who export extensively 10 Guate-
mala. One of the disastrous effects OF the
report has been the recalling OF many
commercial men from the sou tn.
'rhe puplication of sensational and
mostly unlounded news from Central
America, and particularly from Guate
mala, IN one of our daily papers is very
much to be regretted said Louis Hirsch
of Castle Bros. Yesterday. I'VE are very
largely interested in Central Ameri-
can business, with many others, and for
many wears San F-ancisco's business
with the southern republic has grown
constantly and been particularly profit
able 1t has opened up large field for
our coast products. TIE publication of
such sensational news Will only lure
our commercial relations, which we are
so anxious to foster. Large as is our
clientele we have not single failure 10
report. The sad fact that our sister re-
publcs are working on a silver basis has
demo-al;ze their financial system. The
heavy decline of silver has depressed the
merchant who, owing largely in Europs
and America for purchases made IN gold,
finds himself obliged TO cover his indebt-
edness at an exchange OF from leo to 200
per cent premium.
Mean while the high coffee prices which
have prevailed for the last three years
have enriched the country. Guatemala IS
at present curtaiiing its Imports very
much and with rigid economy and large
coffee crop 10 harvest l see no reason why
the future of Guatemala should give Us
any uneasiness.
"The reported failure of Ascoll & Co. of
Guatemala is not true and am autHor-
ized by ca Bile 10 demand retractton from
the party who circulated this malicious
faIsehood. The firm is one OF the Oldest
and richest II the country"
Schwartz 6 Co., who have large inter-
ests in Guatemala. declare that they have
no knowledge of any cf the failures re-
ported in the ochre journal.
1--WE never heard and know nothing o.
anv such condition of affairs IS has been
reported. said Mr.. Schwartz yesterday.
: 1t is ridiculous on its face. That IN
formation came from SOMEBODY WHO
knows nothing of Guatemala beyond what
they can pick up on the street corners.
There is being made in this City sys-
ematic attempt to blackmall the repre-
e Qua Il Lar, lnIer-