The San Francisco call., 1904-07-01
GRAIN SWELLS
IN A GRADER
Books of Eppinger & Co.
Show Much More Wheat
Sent Out Than Received
PROSECUTION WINS OUT
NJ. j. Green, Referee in Bank
rilptcy, Does Not Hold
Attorneys in Contempt

Attorneys Ill contempt
The legal battle for possession of the
books OF EpDinger & Co. before Milton
j. Green, referee in bankruptcy; the
attempt of the defense to have the at
torney for the prosecution and others
cited for contempt Of court, and the
demonstration that the books Of the de-
funct grain firm had been falsified to
make balances, were the features in the
proceedings against Jacob Eppinger
yesterday
1t was shown that the grader used at
the Crockett warehouse must be a
wonderful machine. During one year
the wheat that passed through it
swelled to the extent of some 10000
tons. The books also showed that more
grain had been delivered from the
Crockett warehouse during the year in
which the firm failed than had been re-
ceived.
At the opening of the morning ses-
sion yesterday w. w. Topping was re-
called to the stand and resumed the
reading of the entries in the books. 1t
was explained that the great discrep-
ancies were due to the swelling of
grain, which made a natural increase
during the year Of some thousands Of
bushels, and that the sums were SIM
ply added to the books to make the
accounts balance. 1t was his common
practice, he said, to balance the ac-
counts at the end Of each wheat sea-
son bv making an allowance for in
crease during the year, his information
being obtained from daily warehouse
reports.
Did the gains include barley as we'll
as wheat?" was asked.
YES"
How many sacks were entered as
gains in barley?" 8.
Two hundred and twenty-four thou
sand eight hundred and twelve sacks"
Upon what amount is this entered
on the book as a gain?"
1T represents the seasons gain for
the house,
What was your grader account to
force a balance of the boOks?"
'On $4,000 tons there was allowed
gain of 10000.
How would it stand deducting the
10000 tons?"
There were 6O5S more tons delivered
than were received"
Were warehouse receipts issued for
every pound of grain, including the
gain?"
This question was objected to, and in
reply Mr.. Campbell said he would show
receipts were issued for more grain
than ever came into the warehouse.
The witness when permitted to answer
said that he did not know.
The proceedings before Milton J.
Green, referee in bankruptcy, while
brief, were interesting. Henry Ach,
representing Eppinger, sought to prove
that on June % Attorney Campbell
obtained possession of the books of the
firm by Misrepresentation and there
fore was in contempt of the Federal
court. The testimony was very con-
Trajectory in its nature, but the prose-
cution won out.
Frank S Mitchell, formerly book
keeper for the Eppingers and now en-
ployed by Receiver Wadsworth, was
first sworn. He testified that in COM
pany with Detective Gibson he had
carried the books TO the District At
torney's Office and had deposited them.
on the floor Of the vault there, the un-
derstanding being that hey were to be
accessible to him at any time Mitchell
said that he gained the impression
from a conversation with Attorney
Campbell that the books had been ad-
mitted in evidence before he gave them
up, but he was not positive Campbell
had made any such statement.
Upon examination by Attorney
Campbell the witness said that to the
best of his recollection Campbell had
danger by allowing the books to pass
temporarily from his immediate pos
session.
Attorney Ach, at his own request,
was sworn. He testified that in a con-
versation with Mitchell in the corri-
dor of the Hall of Justice Mitchell had
told him he had received information
from Campbell that Judge Lawlor had
admitted the books in evidence and it
he
them.
Attorney Campbell next took the
stand and denied fatty he had ever
said the books were already in evil
dence. All he had told Mitchell was
merely that no harm would come to
him, as everything would be returned
in good order. His statement was cor
roborated by Detective Gibson, who
was present when the conversation was
held.
Attorney Freidenrich, who represents
the receiver, was not positive as to
what statement Mitchell had made to
him prior to the delivery of the books,
but was of the opinion that Mitchell
had told him in conversation over
the telephone that a subpoena had been
issued ordering him to produce the
books.
This concluded the taking of testi-
mony and Attorney Ach made a formal
demand that the books be Immediately
returned and that Campbell, Gibson,
Wadsworth and Mitchell be cited for
contempt OF court.
In reply to this Campbell argued that
thore was no evidence to show that
the trustee could not see the books at
any time. So far as the possession was
concerned they were constructively in
his possession so long as he had ac-
cess to them, but had simply been re-
moved from one place to another
Referee Green then ruled. that he
had no right to certify the case up to
the Federal court as a contempt, in
asmuch as the fraud, if fraud existed,
was not committed before him. AS to
the books, he said he would direct the
receiver to recover possession of them