13
PRESTO
May 12, 1923
COURT CLOSES
THE EILERS CASE
Amazing Tangle Puzzles Veteran Lawyers
and Clerks of Court at Final Effort to
Unravel Affairs of Fugitive Portland
Bankrupt.
When Federal Judge Bean, of Portland, Ore., last
week handed down a decision in the Eilers Music
House bankruptcy proceedings he closed as tangled
and complicated a legal case as has been seen in the
federal court in many years and also officially ended
the connections in that state of "Hy" Eilers, hectic
financier and present fugitive from justice.
According to the court's orders, H. W. Sitton, trus-
tee, must first pay all court costs and attorneys' fees,
then settle with Multnomah County for back taxes
due by the defunct concern. After these two items
are settled, if anything is left it will be turned over
to Fred Gronnert, who is owner of all stock in the
bankrupt concern.
To lawyers themselves the affairs of the two wrecked
Eilers concerns are a very tangled mess. Even
clerks of the court did not attempt to unravel the
puzzle. A few of the attorneys, the two trustees
and Eilers himself knew the combination. In view
of disclosures regarding Eilers' financial actions made
since his flight from this city and by the San Francisco
police, it is hardly to be expected that anyone could
understand his tangled mess of accounts, legal actions
and poorly kept books.
Bankrupt in 1917.
Eilers Music House went bankrupt in 1917. But
Eilers did not quit. He formed a composition of
creditors, entered into a number of legal battles with
the trustee, H. W. Sitton, and continued to do busi-
ness as the Oregon Eilers Music House.
His career was hectic and varied. He was tried on
charges of embezzlement. He went to jail for con-
tempt of court. He was continually in the limelight.
But he managed to conduct his establishment at
S. W. MILLER PIANO CO.
Makers of
S. W. MILLER
PIANOS and PLAYERS
Dealers who Sell Them are
Satisfied with Results and
are Profit-makers.
New Catalog Ready
S. W. MILLER PIANO CO.
SHEBOYGAN, WIS.
THE
W. P. HAINES & COMPANY
PIANOS
THE PIANOS OF QUALITY
Three Generations of Piano Makers
All Styles—Ready Sellers
Attractive Prices
GRANDS
REPRODUCING GRANDS
UPRIGHTS and PLAYERS
AVAILABLE TERRITORY OPEN
W. P. HAINES & CO., Inc.
138th St. and Walton Ave.
New York City
Fourth and Washington streets and sell pianos and
musical instruments to the general public.
Last fall Eilers' check kiting activities drew the
wrath of a Pendleton, Ore., firm and the second clos-
ing of the establishment followed. Eilers remained
about the city for a few weeks and then disappeared.
Shortly after his disappearance came the news of the Old New York Industry Ordered to Refund
arrest of his trusted agent and sales manager at San
Excess Salaries and Stockholders Get
Francisco and Eilers' own indictment in that city on
Judgment for Deferred Dividends.
charges of obtaining money under false pretenses.
Eilers' Whereabouts.
Supreme Court Justice Ford, in New York, last
Rumors that the hectic financier* fled to Germany week upheld a suit of stockholders of Kranich &
were circulated in this city. Then it was discovered Bach, the old New York piano manufacturers,
that the rumors had been circulated by friends of the against officers of the corporation to compel them to
fugitive. Later came rumors that Eilers is now work- make restitution to the corporation for salaries paid
ing in a music house at Milwaukee, Wis.
in excess of the value of their services, or because
When creditors and attorneys commenced to delve they filled unnecessary positions, and also to compel
into the affairs of the concern last winter they dis- them to make payments out of the funds of the cor-
covered an astounding and almost unrivaled check poration as dividends which were not declared when
kiting system, which is thought to have netted Eilers they should have been authorized.
many thousands of dollars. A half dozen young men,
The judgment directs Louis P. Bach, president;
all dupes of the master mind, were sent out into the Jacques Schlosser, treasurer, and Helmuth Kranich,
field with pay and expense checks signed by the secretary, to pay $204,334 to the corporation as sal-
Eilers Music House. These checks were payable at aries in excess of a rightful amount, and the officers
a small upstate bank. As soon as they were cashed are directed to declare a dividend of $261,240 before
the agents immediately telegraphed the proceeds to July 1. Judgments for stockholders for dividends
Eilers. But when the checks were sent to the bank which should have been paid on their stock are
for collection they were returned unpaid. Only when $31,000 to Mary Kranich, $16,980 to Alvin Kranich,
the holders became insistent and threatened legal ac- $9,796 to Augustus Kranich, 7,184 to Louise Schaefer
tion did Eilers settle. When he fled from Portland and $10,449 to Elvira Walton.
Eilers left stacks of signed checks which he was pre-
The papers in the case showed that no dividends
paring to pass on unsuspecting merchants and hotel
had been paid since 1916, although the piano com-
men of small northwestern cities.
pany had made enough profits to justify them. Mrs.
His Manipulations.
Mary Kranich, widow of the founder of the com-
Evidences of scores of other financial irregularities, pany, who is 74 years old, asserted that she was in
the sale of goods left at the store for repairs, the sell- distress because of the non-payment of the dividends,
ing, two and three times of the same piano, manipu- while Alvin Kranich, who was interned in Germany
lations of contracts and the borrowing of money on as an American during the war, asserted that he
false pretenses were uncovered. But as Eilers had wrote the officers pleading for remittances, and when
left the city without any trace of his whereabouts, no he was finally released from the internment camp
action was taken against him.
returned here in the steerage to fight for his rights.
By Judge Bean's action the few remaining assets
The defendants will appeal.
of the corporation will be distributed. Court fees,
lawyers' fees and taxes will be settled and if there is
anything left—and Judge Bean's comment indicated
that there would be none—it will be turned over to
Gronnert. Complicated and tangled as the affairs of
Hy Eilers have been it is thought that the decision
finally will settle the mess.
New Store Fast Becoming Prominent Factor in
Music Trade Activities There.
A comparatively new arrival in Dallas, Tex., is
the Collins-Decker Company, which is fast taking a
prominent place among the music firms of the city
and is becoming a factor in the local music trade
The Almon J. Fairbanks Piano Co., Boston, Has events. The company's store on Elm street was
Fine Showrooms on Washington Street.
opened the first of the year and is under the direction
The Almon J. Fairbanks Piano Co., 521 Washing- and management of J. S. Frank, who came from
ton street, Boston, Mass., has opened a branch store Greenville, Tex., to take charge.
The Collins-Decker Company, which established
in Attleboro, Mass. The manager of the new branch
this branch in Dallas, has its headquarters in Green-
is M. S. Glazier.
In recording the opening of the new store the ville, where it is a distributor for a varied line of
Attleboro Sun alluded to the head of the business, pianos in the state. It is an old concern in Texas,
Almon J. Fairbanks, as "one of New England's having been established twenty years ago. J. L.
pioneer music men." Continuing, the newspaper says: Collins is president and H. G. Decker is secretary and
"Many people here will remember Mr. Fairbanks as treasurer. Mr. Frank has been with the company
the organist and director of music at the Tremont for six years. The company handles a most complete
Temple, Boston, the largest church in New England, line of musical instruments, including Starr phono-
for nine years. Others know him for his activities graphs and a big line of pianos.
as director of the Highland Glee Club of Newton.
Mr. Fairbanks has been in the business in the heart
of the piano district of Boston for the last 30 years
and his opening of a branch store here comes as a
welcome surprise to his host of admirers in this city."
STRANGE JUDGMENT
HITS KRANICH & BACH
THE COLLINS=DECKER CO'S.
BRANCH IN DALLAS, TEX
OPENS NEW BRANCH STORE
IN ATTLEBORO, MASS.
PROSE POEM WHICH
SHOULD SELL PIANOS
ARTHUR W. COBB DIES.
Arthur W. Cobb, formerly vice-president and gen-
eral manager of the Udell Works, Indianapolis, Ind.,
and connected with that concern for nearly forty
years, died recently at Lake Hamilton, Fla. He had
been living in Florida for the past two years in an
effort to recover his health. Mr. Cobb was born in
New Hampshire in 1865 and came to Indianapolis
in 1883, entering the employ of the Udell W T orks
shortly after his arrival as timekeeper. His advance^
ment with the company was steady, and when the
Udell Works were incorporated, in 1901 he was elected
vice-president and general manager. He is survived
by his widow, Mrs. Katie Cobb; a sister, Mrs. Robert
Fessler, and an uncle, Albert A. Barnes.
STARR IN INDIANAPOLIS.
The increase in the favor for the pianos, player
phonographs and records of the Starr Piano Co.,
Richmond, Ind., is a pleasant condition reported by
T. E. Bracken, manager of the Indianapolis branch
this week. He says the sales for the month of April
were quite above those for the corresponding period
of last year just as the sales for the same month of
1922 showed an increase over the sales of the same
month of 1921. Mr. Bracken explains the causes of
this progressive growth in favor of the Starr.
The Cable Company, Chicago, Employs Blitheful
June with Which to Stimulate Sales.
The Cable Company publicity department hit upon
an attractive theme for its last Sunday's Chicago
newspaper display advertising. There has never been
better June piano advertising., copy than the follow-
ing, which was suitably illustrated. It was headed
"The Gift that Makes Pond Memories Last":
June draws near with its graduates and brides.
Happy days, these, for the pretty maid who is about
to receive her long-awaited diploma. Happy days,
too, for the bride-to-be who is preparing her trous-
seau in anticipation of the greatest event in her life-
time.
Why not prolong the joy of this June-time by sur-
prising her with that supreme gift which makes fond
memories last a lifetime—a beautiful piano from
Cable's?
Twenty years from now, as she runs her fingers
over the ivory-white keyboard, she.will live again the
days, the scenes, the happy moments that surrounded
the event which brought her this lifelong gift.
And we'll make the giving easy—by helping you
select just the right instrument—by delivering it
promptly at the appointed time and place. And, if
you prefer, we'll arrange extended terms of payment \
—so that you can buy her a finer instrument without
the least strain on your pocketbook.
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