The Montgomery advertiser., 1903-06-21
NEWS FROM THE COAST
WHAT IS NOW INTERPRETING
 THOSE WEST OF ROCKIES.
The Great Eppinger Failure and Its Inwardness-Strike of Grave Diggers and the Dastard-
 ly Deeds Done.

employees have been the most exciting in- cijenfs of life on the Pacific Coast for the past week.
 The failure has an ugly look and has been a lesson to the financiers or the Pacific Coast famous for their snrewd' ness. It's ugliness lies in the fact that there is not nearly enough wheat in the firms warehouses to makt good the large issue of warehouse receipts n which the firm borrowed money. It is openly alleg- ed that much of this wheat was with drawn for export after the receipts had been hypothecated as security; that the grain has been sold in forgeigh markets and Is now en route in foreign bottoms
 The failure Is the old story of counting ones chickens before they are matched, of spending money before one has It. Ep- pinger & Co.,, had been in business in this city for over a quarter of a century and had the confidence of the banks nd their fellows in the financial world. The firm comprised Jacob Eppnger, his son Her. man and Bernard Ettlinger. They have always lived high and spent money lavishly, especially is this true of the Eppingers. Peck" Eppinger has for years been known as good thing" down the line. He was not In the firm but 1t took a mint to keep him up as he spent money with both hands. He made a trifie for himself. $90, 900 or $100, ,0O0 some time ago by marrying Charley Schmpz's s widow. Charley worked for years as manager of the Orpheum Theater, scimp- ed and saved and just as he was about to retire and live on his interest he took sick and died. His young widow was like a bird released from glded cage. She took up" with Peck Eppnger and they were married. He took her money and opened book at the race track, dropped $25 900 in few weeks, became disgusted and taking his wife went to Japan. When they returned some time ago it was gen. erally understood that he was broke and had to fall back on the old gentleman.
 Jacob Eppinger the senior member of the firm has been i'll for nearly two years and the active operation of their immense business has devolved largely on his son. Herman, and 1t is known that the latter took risks that he old gentleman would not have dared. The very favorable winter season presaged a heavy grain crop and the firm sold December wheat in ten thousand ton lots. Grain Is sold by the hundred weight or ton out here as everything else Is sold, by the pound, the bushel Is unknown. The firm stood to make hundreds of thousands if not millions on the season and the rainbow promises of the future were such that the money went even faster than before if that were possible. Then there came a change, the speculative sky was su,idenly bec.ouded and the rainbow faded The spring rains did not come, late soWn grain did not mature and rIuch Of the acreage was either pastured or cut for hay First reports from agents throughout the State Indicated that he rrop might not be 50 per cent of the average. It was not so bad as that but under the alarm timfd capital became alarmed and the market stiffened.
 Eppinger & Co.,, were members of the
 Big Four" a combination that has con trolled for years the local and export grain market of the Pacific Coast This combination comprised the world-far,ed houses of Balfour, Guthrie & Co. Me- Near & Sons Girvin & Eyre and Eppin- ger & Co.,, all with agents in London and in other consuming centers in the Eastern hemisphere. The four stood together. manipulated the market and controlled the charter rate for ships buying the charters and sending the ships up he bay on waiting orders to preeent their
 being chartered by lesser firms. An interior buyer would come to the city with samples of 1000 tons of wheat. He would exhibit his samples to one or each member of the
 Big Four and ask for an offer. He would be told in each instance to call after o'clock At o'clock the Big Four met in daily conference and the price of that lot and many others fixed. When the seller called at each of the four houses In turn he was offered the same price at each house. Lesser buyers had to shin charter and the shipment of grain East by the rail route Is seldom undertaken unless the railroad company has a string inG fn ha rfNt.-
 others to buy the grain would simply result in their having to resell it to the
 Big Four. This condition existed for years until a season ago when a number | or the lesser brokers combined. secured few charters and filled the bottoms with wheat bought at fractional ad. vance over the Big Four's price The ap. l peafahce or the new combinatio called | for an increased outlay, where, hereto.
 fore vessel calling for a charter would
 be permitted to swing idly at her moor. l lngs until the combination was ready l now the charter must be tied up to ore. vent 1t fallingti in to the hands of the rival combination This increased outlay | and the tens of thousands of tons ot wheat that Eppinger X Co had sold short 1 precipitated the crash. There seems to be 1 no question that the other members of the 1 Big Four knew the tottering condition of the insolvent firm but to prevent q panic and cover any possible losses tc | them selves they were carried along foI | months. It is known that they are cred. itors of Eppinger X Go. but to a lesser amount. The failure was not announced until Saturday afternoon after the close of banking hours. This was done in order | that the people might have holiday in which to think the matter over, recover | their heads and realize that precipitate | action would be not only unwise but financial suicide to many
 l Of the S,500,00O failure probably S750 00( is a total loss that must be shoudered by 1 live or six banks and few individuals
 That thousands and thousands of dollars | were borrowed on warehouse receipts with no grain to back them up is now known
 The firm has been borrowing in this man. ner for months such was the confidence of the financiers in the old established | house. The firm had organized itself into the Pacific Coast Warehouse Company and had nine warehouses scattered throughout the State, the largest at Port | Costa alongside deep water where they loaded the ships. It was easy for the firm as the Pacific Coast Warehouse Company | to issue it's own warehouse receipts and deposit them with the banks as security for loan. An agent of the bank visit the warehouse. see the wheat there and SD report. The loan would be made and possibly within a week the wheat would be on the water bound for Europe. An other lot of wheat would be received more money borrowed and the operation repeated. It must be remembered that as