Amador ledger. (Jackson, Amador County, Calif.) 1875-19??, 1910-09-09
BIG FAILURE
IN JACKSON
c. 0ioVannoni & Co., are
Forced to Close
Store Doors

The general mercandise house of e.
Giovannoni & Co., including the
macaronni factory connected there
with, closed its doors on Monday last.
This is the heaviest financial failure
that has occurred in Jackson, and for
that matter IN AnIador county, for
many years. The crash was not al
together unexpected, as it had been
known for long time that the firm
was financially embarrassed. There
was no attachment levied, the credi
tors deeming that course unnecessary.
and useless expense, but it was
limited that the firm would be forced to
suspend business if such a course was
not taken voluntary. So Monday at
noon a notice was posted on the closed
doors, "Closed for stock taking and
the whole establishment has been
closed since. There does not seem to
be anything going on inside.
The amount of liabilities is merely
matter of conjecture. 1t is variously
estimated at from $4,000 to $25, 600
and some places it is even higher.
| The assets consists of the stock in the
store, which has been greatly run
down of late, and several pieces OF
real estate, all incumbered The
credit system is conceded to be the
cause of this failure. The book debts
are estimated at over $4,000, enough
to wipe out all liabilities, but if they
were collectable. But most OF this is
worthless, extending over a period OF
years, and outlawed.
Considerable of the liabilities of the
firm is represented by borrowed
money. from various parties, to tide
the firm over the crisis. This methoC
was adopted in hope that conditions
would improve, that collections would
be made, and the firm get on its feet
1t was continued, until the borrowing
power was exhausted, and there wa
no other alternative but to quit.
This house has been doing as large
if not larger, business than any
general merchandise house in Jackson
Connected with the firm were the
three Giovannoni brothers, and two
brothers-in-law, all having families
and all more or less participating il
the active work of the business.
A meeting Of creditors was to be helC
in San Francisco yesterday, but had tt
be postponed on account of the absence
of A. Caminetti, attorney for the bank
rupt firm. The merchant creditors are
represented by the board of trade c:
San Francisco. There is no prospec
Of the firm resuming business, and al
assignment is likely if the creditors
whose claims represent borrowed casl
can be pacifed; otherwise Insolvency
proceedings may be the last resort.
This failure is to be laid at the doc
of the credit system, and the lesson t.
be learned from it is the urgency O.
getting out of the credit rut which ha
been nurtured in this community TO
so many years, to the detriment of al
concerned. Merchants should get to
gether as they do in other cities, ant
protect themselves from the unscrupu
lous who live by bilking business
houses by running up bills they dono
intend to pay. A board of trade wa
organized over a year ag to take thu
initiative in this direction, among
other things, but evidently persisted il
the process of birth. If this organiza
ton did nothing else than regulate The
circuit system, 1t would accomplish ;
lasting benefit for this city, and al
concerned would be only too glad tt
contribute the dues necessary to keel
it moving.