The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-04-05
A Big beer BOOM.
Lembeck and Betz Reorgan-
izing on a Co-0pera-
tive Basis.
ENGLISH OFFERS REFUSED.
Consumers to Become Stockholders,
and a New Plant to Be
Built in this City.

A few weeks ago the representative Of
the English syndicate organized to gain
control of American brewing interests
cast covetous eyes on the great ale and
porter establishment of Lembeck & Betz,
on Ninth street. The firm received very
liberal offers-fgures over the mfllion
mark being named as the footing Of its
plant in the ratings of the syndicate The
overtures were considered at length and
bodily rejected. The idea of reorganiza-
ton, however, grew pretty steadily. and
has resulted in plans for its complete re-
construction Of the great business on an
independent and cooperative footing.
THE PLAN OF REoRG ANIzAT1oN.
The manner in which this will be done
was explained at length to NEWS re-
porter yesterday, and as an important
chapter in the history of remarkably
successful enterprise cannot fail to prove
interesting.
Within a few days stock company
will be Incorporated under the laws Of
the State to which will be conveyed the
Jersey City plant of Lembeck & Betz and
that of Ii. f. Lembeck & Co. at Watkins.
Seneca Lake, N. Y The value of these
properties, aggregating $3.50 900, will be
the total amount of the capital stock. OF
the $500 S100 shares the old firm of Lem
beck 81 Betz will retain controlling i'm
terest, and the remaining 5000 shares
Will be sold to consumers and others in
terested in the welfare of the concern.
This plan is for Bhe purpose of giving the
patrons OF tie concern an opportunity to
share IN its successes, and TO increase
these by their own efforts. The members
of the firm, too, are getting along in years
and wish q less burdensome charge.
A NEW BEER PLANT.
After the new company is fairly
launched. with Commissioners Henry
Lembeck still at the head of affairs as
president, first mortgage bonds to the
amount of $250,000 will be issued in series
of $50, 600 each, the proceeds to provide
for the erection and maintenance of a
complete beer brewing plant in connec-
tlOn with the Ninth street establishment
These bonds will be secured by a mort
gage executed to the New Jersey Title
Guarantee and Trust Company, of which
Mr.. Lembeck is vice president. They will
bear coupons with interest at six per
cent, payable semi annually, and will
mature at intervals of five years from
May l, 1900. The firm expects to use the
total capital of 100000 TO such advantage
that the stock will soon sail beyond par
value in the quotations of the near fl-
ture.
During the past three years the net
earnings of Lembeck & Betz have footed
up $265. 200, an average of S8S, ,403 per year,
Deduetinp from this IS. 600 for wear and
tear and bad debts $50, ,4O3 remain as clear
profit. Even this would be 9-l0 per cent re
turn on the $650, 900 of stock. The amount
of net profit on its beer brewing business
is estimated as at least $55, 900 for the first
year. This amount, less 10000 additional
terest account would bring its total profits
to SS6, ,403, equal to 20 4-5 per cent. on its
stock. These are rose colored figures, but
even so the projectors of the Eagle Brew
ing Company. that is to be, seem conf
dent of bringing them into reality. Prep
arations are under way for the receipt OF
proposals and bids for the purchase of
both stock and bonds.
THE PRESENT PLANT.
The plant on Ninth street covers seven
teen full city lots. As the Eagle Brewery
it has become a noted landmark. Al great
five story brick brewhouse put up two
years ago, is the principal building. Be
sides, there are storehouses, vaults. tun-
nels, and every other variety of structure.
Two artesian wells, 800 and 400 feet deep
respectively, and a thorough equipment
of modern appliances.
The firm keeps the entire block of street
in thorough repair.
Up at Watkins, on the shore of Seneca
Lake is another big plant. 1t covers
three acres and a half, including 250 feet
of water front, great docks, railroad
connection and a village of buildings.
These include storehouses holding
10000 and $4,000 bushels of barley and
matt respectively, elevators, kilns and
miscellaneous structures.
The addition to the plant on Ninth
street will include an entire new beer
brewery with an annual capacity Of 100,-
600 barrels, ice machines, storage vats
and other machinery and appliances Of
every description. The cost of all will be
$50, ,000 The additional 100000 of the
bonded mortgage will be the working
cash capital required for the purchase OF
barley for malt and other expenses. The
estimate for the first years work Is $4,000
barrels of beer.
Commissioner Lembeck is deeply in
terested in the new idea and has already
enlisted the support of several of the
heaviest consumers, who will be named
among the incorporators of the company.
REG ULAR DEMOCRATIC NOMIN.4-