The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-09
A GREAT FIRM GOES
TO PIECES,
Eppinger and Company, Grain
Dealers, Fail for
Millions.
CBy the Associated Press.)

San Francisco, Cal. June G.-Eppinger
and Company, of this city, one OF the lar
gest grain dealing firms in the United
States, went to the wall today. The crash
came suddenly and for a time threatened
completely to upset the local grain market
AS it was the failure caused big bobbng
of prices on Change and wrought up such
excitement as has not been witnessed on
the floor for many years. 1t is thought
that the losses OF the firm will run up in
to the millions, while the London, Paris,
and American banks, the money houses
with which it deals, will also, it is said,
suffer heavily.
Henry Ach, attorney for Eppinger &
Company, said this afternoon:
AT meeting of the creditors held in my
office, it was shown by the books of the
firm that the liabilities were in the neigh
borhood of 81. 350, 600. The assets, consist
ing principally of lands wheat and general
and personal property, are placed at $780,
co., Nearly all OF the creditors are par
TALLY or wholly secured
The failure of the Eppinger concern is
the greatest and most far-reaching crash
in the California grain trade since Will
liam Dresbach was forced to the wall sew
en- or eight years ago.
1t was known that the company was
short on a large amount of December
wheat, and the announcement in teh face
of this fact at once brought about the
most marked activity. Creditors of Ep-
pinger & Company began buying against
the amount short to the account Of the sus-
pended firm, with the result that Deem
Der wheat quickly rose from 81 80 at the
opening to $1341a. After the great bulk
of the pressing contracts had been filled
the market weakened somewhat and the
price declined to S132%.
While it has been impossible to secure
definite information as to the exact extent
of the failure, it is believed to be extreme
ly heavy and severe. The connections of
Eppinger & Company are numerous both
on the Pacific coast and in the grain mar
kets of Europe. The firm included Jacob
Eppinger. the founder, Herman Eppin-
&c rand B. Eppinger.
Eppinger & Company were members Of
a combination known as "the big four.
This combine. which was in control of
warehouses all over the State, notably
those at Porta Casta, was dissolved about
six months ago.
1t is the general opinion that the cause
for the failure of Eppinger & Company
dates back five or six months ago. when
the big Four" combine was caught heav-
lily long on shipments chartered at the
highest prices last year, and short on
wheat, which had been sold as low ais 81. 05
and which rose to $1.60. The combine was
given a very severe squeeze, and it was
currently reported in business circles that
the losses amounted to $4,000, 900 incurred
in covering the enormous short lines. OF
this big loss Eppinger & Company were
forced to stand their share. It is the belief
that the losers shared the loss on equal
terms. This would have resulted in net
loss of $75O.OOO to the firm.
The final crash was preclpitated by the
London Paris. and American bank, which
within the last two or three days made
peremptory and heavy demands on the
firm of Eppinger & Company The OBJ
legations were pressing and the firm could
not meet them. Therefore, notice Of in
solvency was sent to the exchange.