The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-21
BEET. SUGAR AGENTS FAIL.
GUSTAVE 4. JAIN q co. ASSIGN
-LIABILITIES, $4,000.
Report That the Cane .Suear Interests
Forced the Firm TO the wall Denied
by Assignee's Lawyer-Mr. jain Had
Had Litigation With Former Partner.

Gustave A jain 4 Co Of es Wall street,
American Beet Sugar Company consigned
from the West last month 05 900 bags of
beet sugir. which has not been sold. made
an assignment yesterday to Gustave
Schimmel. with liabilities put at $50 600
and assets said TO be "a large. Tn, as
signee's attorney said that there was moth
ing in report that the cane-sugar men
had forced the firm to the wall.
Mr.. jain gave out a statement In VIII ich
he said that in the latter part Of 1901 his
partner. ", j. Grifiths. demanded to be
bought on: or to have a receiver appointed;
that he bought Mr. Griffiths out for largo
sum and put in all his own private means
and capital contributed by his son Frederic;
took Frederic into partnership and tried
to pull through He hal TO got an ex-
tension from creditors, which curtailed
his credit. and he had not resources enough
TO conduct the business on paying basis
He is confident that there will be sub
stantial surplus when the creditors are
paid The capital his son had accumu-
lated hnH been lost in the attempt to help
his father.
On behalf of W J. Grifiths it was fatty
denied by his attorney, Adam Frank that
IN the contrary" said Mr.. Frank. MIR.
GriiiithS on releasing AL his interest in the
firm to Mr.. John paid him large sum IN
cash. One OF the factors that caused the
failure was the cons linent of beet sugar
from the West Mr.. johns resources would
not permit him to guarantee the bills of
small grocers no would be his only customs
ers. tle iobber, having agreements with the
trust. Therefore the beet sugar had 10 be
nut in storage and he became responsible
for large storage bills.
-Me.srs John and Griffiths we're Office
boys together. The quarrel between them
arose originally over Mr.. John insisting
that his son Frederic. who had no business
training. be made n partner. John 4 Co
we're naturally with the Western sugar
crowd. When the Sugar Trust found the
Wes;erners were heavily loaded with sugar
it would drop the price Of the product
don't think that the firm was important
enough for the trust to 60 after them
workings they suffered. Mr.. GriHi'hs, my
client, sued Mr.. John for an accounting
of the partnership and held this suit over
Johns head until he had renewed all the
bills o. the old firm in his own name under
the new partnership, that letting Mr. Grit
fiths out. The concern could have been
closed IN wear ago nit slight surplus
This statement by Lawyer Frank was
reed 70 I. Z. Hod kskin, attorney for the
assixnce. Mr.. Hodgsiiin said:
! nat statement II not correct, nut We
don't care 10 make any statement in OPP
position 10 II. We do net want to enter
into any controversy In my opinion
the liabilities Il the firm will not exceed
slsO,nOO and the Assets will cover them.
The assets. however. arc slow. including
securities OF the Atlantic Ricc Mining
Company. That company Il not involved
in tho failure but Mr. John VAS one ~ it's
largest stockholders and wa, the president
OF the company until few days ago
The hrIn oe.,t III rice, sugar, coiIee and
molasses. r. oahn has Deen in business
for himself for thirty-seven years. He
is a vice-piet dent of the F1atbush Trust
Co. and owns real estate in Flatbush. Most
Of the liabilities are said to lie to banks.
The firm has been one Of the largest hand
ers in this country cf japanese rice. the
rice being imported and prepared fcr
market by the Atlantic Rice illing Com
pany and then sold by jain Il Co.
On the New York Stock Exchange yes
terday, on sales Of 40. 100 shares. the stock Of
the American Sugar Refining Company
made a sensational advance. running up
points to l29. and closing at l?7t. The
| advance was attributed on exchange
to unconfrmed reports that important me-
| gotiations had been completed between
the American Sugar Refining Company
| and the beet sugar interests.
In the sugar trade yesterday Arbuckle
Bros. were alleged TO be making a secret
| price cut Of cents 100 pounds, and B. II
Howell. Son 4 Co., were said to have met
this rate