Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-31
WITH A HIGH HAND
The Chicago Beer Syndicate is Now
Running the Business.
ONE OF THE RESULTS OF THE WAR.
Retailers Are Only Allowed to Buy From
One Brewer Now.
SOME OF THEM KICKING VIGOROUSLY
ESPECIAL TELEGRAM TO THE prspAruH.

ESPECIAL TELEGRAM TO THE prsPAruH.i
CHICAGO, July 30.-With the great
brewers quarreling with each other and
each cutting the others rates until beer was
sold Tor 81 and even as low as S. 80 per
barrel, the Chicago saloon keeper had q
picnic of it until few days ago, when the
Association of Chicago and Milwaukee
Brewers made binding agreement not to
sell no beer hereafter for less than SS per
barrel, with discount OF not more than 25
per cent, and at the same time passed q
resolution, the object of which is to prevent
one brewer from taking away the custom
which another has built up. The resolu-
ton, which has just been made public.
promises to work a revolution in Chicago
beer; it is as follows:
Resolved, By the Chicago and Milwaukee
Brewers Association, that hereafter no saloon
keeper shall be allowed to change from one
I brewer to another. In case it can be ascer-
| tanned by this association that any saloon
| keeper has ceased to patronize ono brewer and
| has transferred his patronage to another,
| the brewer to whom the saloon keeper has gone
shall pay to the brewer who originally supplied
the saloon keeper a royalty of not less than So
per barrel for all the beer he sells to said
saloon keeper.
A PECULIAR RESOLUTION.
The wording OF this resolution may seem
peculiar outside of Chicago, but everybody
mere understands what it means. In order
to dispose of his product, each brewer has
his own saloons which he has set up, paid
the license for and put men in charge OF,
stipulating, of course, with the saloonkeeper
not to sell any other brand of beer than his
own and taking chattel mortgage to secure
repayment for his advances. When the
man in charge of the saloon has succeeded
in paying for 1t, and sometimes before, along
comes the agent of a rival brewer and offers
the keeper of that saloon special induce
ments to handle his beer, and the original
brewer frequently has to cut rates and fight
very hard to hold on to his trade. Indeed,
that was what ca used the recent decline of
beer to prices before unheard of,
The Brewers Association now proposes
to change all this and forever put an end to
all such struggling for trade by providing
that each brewer shall remain in undisputed
possession of the saloons which he has es-
tabllshed, and that any brewer who violates
his right in this respect shall pay fine big
enough to make such business very unprofita-
bic. To the Chicago public the meaning of
this resolution can be expressed in two words
poor beer.
WORK OF THE SYNDICATE.
The American-English syndicate, which |
has just assumed charge of five of the |
greatest brewing and mailing establishments |
of Chicago, has started to making beer out |
of corn instead of using hops and barley. |
Corn beer costs about 81 80 barrel, whereas |
pure. beer, properly made, costs very much |
more. Naturally the customers of the syn
dicate objected; their patrons declined to
drink such stuff and called for Milwaukee
and other brands of beer instead. The syn
dicate saw its trade falling away and ex-
erted enough influence in the association to
secure the adoption of the policy indicated.
Some leading saloon keepers are turning for
relief from Chicago corn beer to the Mil
waukee firms, which are not in the associa-
tion, and to st. Louis.
Speaking of the resolution, Charles Kern.
a well-known Chicago caterer, said this
evening: ''It is simply abominable. 1t
would be all right to say that man could
not 60 from one to another while he owed
the first one, but to say that a solvent bust
ness man could not get goods except from
one man, is
GOING LITTLE TOO FAR
for even these English syndicates. I
stand that thing at all. There are
two reasons why don't do this; the princi-
pal one is that my customers insist on good
beer, and because this syndicate is making
the very cheapest beer that can be turned
out. The brewers have for years past made
D profit of from 80 to 30 per cent on their
investment. Then these Englishmen came
in and paid big price for their plants.
Then they water the stock so that it will
pay or 10 per cent. What is the result I?
They meet with competition because they
tart out making bad beer. Independent
brewers go into business and make a good
lrticle, and everybody who can do so patron
yes them. 1t costs the syndicate money to
light these new concerns and, proportionate-
y, their profits are cut down. Then they
.et disguised and the final row comes, and
hey sell out at n great loss Just as they did
It Detroit, where they first started this syn
licate brewery business