The San Francisco call., 1903-09-25
CROOKED WORK
IS DISCLOSED
Bernhard Ettlinger Tells
of the Transfer Of
Bad Titles.
Lays All Blame on jacob
Eppinger, Senior Member
Of the Firm.

with the examination OF 6ernndIu ElI-
linger before Referee in Bankruptcy Mil
ton ]. Green yesterday afternoon the tax
ing of testimony by the attorneys repre-
senting the creditors of the ruined firm
of Eppinger & Co. came to close. Eft
linger, the last of the three partners III
the inSolvent wheat firm to be cross-ques-
toned, although manifestly an unwilling
witness, made some disclosures of the
business methods of the defunct grain
broking firm which tally well with the
exposures elected from the witnesses pre-
viously examined.
BY Ettlingers admissions piece OF
very sharp practice was uncovered in the
form of a business transaction between
Herman Eppinger Jr. of the firm or Ett-
linger Co. and the firm of Epplnger d
Co. in October of last year. He said that
in full settlement of debt of $50O0O
which Herman Eppinger Jr. owed to the
Eppingers the latter firm received the
titles to certain properties near Paso
Robles, in San Luis ObispO County, ap-
praised by Bernhard Ettlinger himself at
value of $4l, 900. Attorney Freidenrich,
who conducted the examination. then
stated to the witness that he had proof
to the effect that these self-same lands
were sold by the State for delinquent
taxes in 1896, and at that time they were
held in the name of Eppinger & Co.
Ettlinger was not to be caught In fur
ther damaging admissions, and therefore
stated that at the time of the transfer
Herman Eppinger Jr., who was supposed
to be the possessor of the titles in ques-
ton, had said that there was some ntlga-
tion about delinquent taxes, but that 1t
was not of a serious nature and in no
way clouded the title to the land. Eft
linger denied that the firm had any
knowledge of the fact that the land In
question had reverted to the State.
SHIFTS BLAME TO JACOB.
In detailing the business affairs of the
firm Ettlinger, like his partner, Herman
Eppinger, passed the whole burden of the
failure up to Jacob Eppinger, the senior
member of the firm. He maintained that
he had nothing to do with the buying and
selling of grain in San Francisco, nor
with the details of the warehouse busi-
ness, but that his duties consisted in keep
ing up the business end of the firm in the
interior. To every question concerning the
ventures of the firm in the wheat market
Ettlinger replied that Jacob Eppinger
managed all the financing of the firm and
that he rarely knew what was going on.
when were you first aware that the
firm intended to call meeting of its cred
itors?" queried Attorney Freidenrich.
mot until the day when Jacob and Her
June 5, l think"
"You were present at the consultation
with President P. E. Bowles of the Amer
lean National Bank when he demanded
additional securities on his notes?''
'I was"
And yet this did not seem to you an
ominous proceedng?"
Il can't say that it did, since knew
nothing of the financing of the firm;
Jacob EnOinpPr tended IN al haf
You were present at the meeting on
June when 1t was decided to call a
meeting of the creditors" persisted
Freidenrich. What reason was given by
your partners for the necessity of such
mover"
Jacob Eppinger said that Bowles was
pressing US to take up his wheat loans
and that we could not meet the obliga-
tion. That was ALL replied Ettlfnger.
DIsCLoSES COMBINATION.
Ettlinger then declared that he had
only a hazy idea at the time of the fact
that Jacob Eppinger and Joseph Eppinger
were drawing heavily on the funds of the
firm. He maintained that the examina-
ton into the books of the firm which
had been ordered by himself and Her
man Eppinger, had been commenced in
April, but that it had not been COM
pleted. Two weeks before the 5th of
JUNE, d shortage OF Sl5U,UUO mad been dis
covered, but at that point all investiga-
tion ceased. He further stated that Jacob
Eppinger never made any reports to him
of the loans he had made in the name
of the firm.
The questioning of the creditors attor-
ney then drew forth some light upon the
close combination between the firms of
Eppinger & Co. and Etthnger & Co. At
torney Freidenrich asked:
DO you know of the amount you ad-
vanced to Ettlinger & Co. for period of
two years prior to the failure?"
II do not"
I'm your capacity as manager of the
valley lands for the firm of Eppinger e.
Co, did you pay the State assessment
upon reclaimed lands owned by Ettlinger
& Coz"
az did,
From the funds of Eppinger & Coz"
Eyes"
SHADY TRANSFER MADE.
The attorney then took up the subject
of the payment made by Herman Ep-
pinger Jr. upon his debt of $50 900.
Did you take those lands in San Luis
Obispo County in full payment Of the
debt which Herman Eppinger Jr owed