The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-12-26
JOHN & co. HAVE FAILED
Noted Firm Which Fought the sugar
Trust Goes Under


New York Dec. 25.-Major Gustave A.
jain. prominent in political circles in
Prooklyn. and leader of the local trade
elC ment which has Tor years fought the
sugar and glucose trusts. was compelled
Il announce yesterday the failure Of his
firm. c. A. jain & Co. OF No. 9s Wall
street. For thirty-seyen years Major
jain has been actively identified with the
rice. coffee, sugar and molasses trade
IL this city. and his firm was one Of the
largest wholesale dealers in these COM
modities in this country. The liabilities
are estimated to be within sl50,e00. and the
assertion is made by representatives OF
the assignee that the assets Will fully
equal that amount.
Losses sustained by the firm last year.
from which it was thought recovery
could be made. finally forced capitulation.
II was a surprise to every one in lower
Wall street. The failure. il was an
nounced. does not affect the Atlantic
Rice Mills company. of Brooklyn. Of
which Major jain was president up 10 a
few days ago. So far as could be learn
ed. local banks are the main creditors.
During the last year the firm has heen
frequently forced TO request extensions
of time from the banks. and the recent
prolonged stringency of the money mar
ket was the immediate cause of the col
lapse.
The losses of the firm were mainly the
result of heavy importations of foreign
graduated sugar during 1901 and the con-
tInuous decline in the price of coffee. on
which the firm held bullish views.
In the statement issued by the firm yes
terday Major jain disclaims response
hility for the losses which the firm sus-
tanned a year ago. 1t is plainly stated
that these were incurred while he was
away looking after the rice and milling
interests OF the firm in Louisiana and
Texas Il was obliged to leave the man
agement of the business to others. the
statement reads. and was not. therefore.
sufficiently familiar with the details 10
know its exact situation"
The others" TO whom he refers were
his former partner. W ]. GriTiths. and
his son. Frederick.
In the latter part OF 1901 it goes an
to say. my partnership with ". J. Grif-
fths expired He demanded TO be bought
cut or that We should make an assign
ment and put the firm in the hands of 4
receiver I finally paid him a large sum
Of money for his interest in the business.
whereas. as 1 afterward found out, the
ccDitaI of the firm had been so much i'm
paired that his interest in it was nothing.
While I knew that the firm was en-
barrassed I was not willing 10 make an
assignment as ! felt confident IL had
more than sufficient 10 pay its debts. and
that with little time could put it in
a sound financial condition. During the
present year I have done everything that
was possible to do this. l put all my
private means IL the firm, and my son
Frederick came to my assistance with ad-
d;tional capital | found. however. nat
I had underestimate the liabilities Of the
frm and overestimated my ability 20 meet
these obligations as they matured. This
necessitated my obtaining from my cred
itors an extension Of time. which. in turn.
c,Irtailed my credit so that nv available
cash resources became insufficient for
the conduct Of the business on a paying
basis
Mr.. Griffith has al Office al II Water
street Through h.s attorney. Adam
Frank. OF No. . Nassau street. he bit
terry denounced the statement issued hy
jain & Co. and declared that he had not
been paid any money by his Old part
ner. but. on the contrary. had paid jain
& Co. a lump sum in cash. which re
leased hin from all Interest in the firm.
Attorney Frank also claims that the
losses were sustained through specula-
ton.
The cause % the quarrel" said Mr.
Frank yesterday. between Major Jain
and Ar Gri1iths was the demand that
Frederick Jain. a son O; the senior Mem
Der. be admitted to the firm Mr.. Crit
fths was opposed 20 this because be he-
Iseved il would De uuwise. A. the tine
demand for dissolution Of the partner
ship was made. I believe. the Affairs o.
the firm could &c wound 40 with sur
plus
Cus:ave Schinr1el. % th- Gsrmaala
Fire Insurance. ooulpany. u brooklyn.
Is the assignee His attorneys are Win
gate < Cullen % No - Nassau street.
The firm lately received newspaper pao-
licity through acting as sales agents u 3
consig- meat q beet sugar belonging 20
the American Beet Sugar company. zhsch
began % wage var Of th@ HaveuncTer
trust by selling be; susar 81 the Ne~
YORK market i wzs regarded IS siznid-
ccnt yesterday that - TIE few big sugar
hcuses which could act as an opponent
% IRE lsg srlsss the on- vhich dsd un5eT-
2 ke 70 ser III be>t sugar Eas fo-res %
tn vaG befarr IN csnssEa-nsa; as sd
2 Hc5gskin. - Wingafe = Culie1-
sad last nIghs thzt the failure co.'s rs;
- traced - ans Sss 80 th- SCAR tr'Ist-
TT = ahsa.ateiy untrue - s-l4. 10
say ihas II RsTere~er G. - cg7-
pa-y had anything t. do Tith Sz- sEztsr-
r&as-nsn;~
,fs-eCsite glch Dr. -s -essrs
/ elixzsra. which has a~zn ssgwin< fo-
,s-e7ty-four hours so.szT reossre3 street
car raft temporarily fruressitit I'D
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