The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-02-22
THE BEER SYNDICATE.
Negotiations in Progress for the Purchase Of
Chicago and st. Louis Breweries.

CHICAGO, Feb. 2.-There is something of
a stir among local brewers over a report
that Mr.. Luke Bishop representatives of the
English syndicate, which is buying up
breweries in this country right and left,
will be here soon for the purpose of closing
bargains for several brew houses here. The
negotiations have been going on since last
July. Briefly" said PRECEDENT McAvoy,
of the McAvOy Brewing Company, ''it has
been proposed to buy us out, and yet leave
us in. TwO-thirds of an agreed price for
our property is to be paid in cash. and one
third in stock and debenture bonds. We
are to be left in charge as managers on a
salary. The name of our brewery is not to
be changed except in some way to indicate
limitation of our liabilities, as, say, Nc
Avoy Brewing Company. limited"
Prom whom has the proposition comet"
"a dozen different parties--three of them
name of an English syndicate. We are
asked to name our price and submit with it
schedule of our Investments and business
Detailed examination as to the correctness
of the schedule is then to be made by an
accredited agent of the syndicate. If the
price proves satisfactory in the light Of the
showing, the deal is closed"
How many brewers have named their
price~'
'At least six, and the largest"
will the deals go throughW
Now you've got me. The standing of
some of the men who have approached us
inclines us to think the scheme is genuine.
This is borne out by the fact that Blausson
obn Beta g in
HulPs, on Staten island, have been pur-
chased ostensibly for the same account.
Three Rochester breweries, also, are re-
ported as bought. but don't think the
trades haye been closed. The object is not
tQst. Prices can be controlled by the
brewers association now as effectively as
by any trust The object is to obtain an
investment for English capital tired Of
more risky American securities and
yet desirous of American rates of return.
A parallel case is found in the English pnr-
chase of Havana cigar manufactures. The
six Chicago breweries referred to as will
ing to sell at prices they have named would
bring to this city about s6'ooo.OOo of the
Another leading brewer, presumably one
of the six, said: my advice to any brewer
is to sell. There is no telling where prohi-
bition may end in this country. Besides,
the English have such high ideas of the
proftableness of breweries, owing to fort
unes like those Of Bass and Guinness, that
they will pay stiff prices"
ST. LOUIS, Feb. 2l.-It is announced that
an English syndicate of capitalists, with a
capital of $50, ,000, 600, whose American rep
resentatiye is ex-senator Stephen w. Dor
sey, has been operating here for several
days past with a view to acquiring, by pur-
chase. some of the breweries of this city.
Several owners have been approached. but
SO far, it seems, with little or no success.
The Anheuser-Busch Association, whose
property is said to be worth in the neigh
borhood of s7,OOO.OOO, state plumply that
their brewery is not for sale at any price,
and other large concerns are averse to sell
ing; but it is thought possible that some of
the smaller ones may be acquired, although
no deal has yet been made. Should more
than one be purc hased it is said that they
will be consolidated into one interest, and
the business pushed with vigor. There are
twentv-six breweries iii this city, with q
working capital of S20.000O00
Referring to the proposition of an En-
glish syndicate to purchase st. Louis
breweries, COI.>Sam Scott, who Is the local
representative of the syndicate, says: "The
capitalists represent mean business, and
are willing to pay the money over when
they buy. They are not the same parties
who have been operating in the East, but a
number of moneyed men seeking invest
ments. They were especially anxious to
secure the Anheuser-Bush property, but
that deal has fallen through and l am of
the opinion that nothing further will be
done in st: Louis, at least by the parties
reureSenf ~