The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-24

Now Colonel Denicke held some notes
and owned some property, which were
issued and decided TO him personally under
his own name. but were. so the buyers OF
his business thought, the property of the
brewery and included III the sale. These
notes and realcestate properties amounted,
II is said, 10 some $4,000.
When, therefore, not long after the COM
bine had commenced business. it was found
that Manager Denicke insisted that these
notes and other property belonged to him
individually. while the directors thought
differently. it led 10 discord, which gradually
wideued into downright breach OF those
friendly relations manager is supposed to
have with the board Of directors Of the con-
Germ he represents.
There was considerable correspondence
between this city and England, until one
fine day the syndicate made p peremptoTy
demand on the colonel for that $4,000 worth
of property they claimed he had no right to
withhold. He, however, told the directors
that ne had taken nothing but what was
his own, and that he would rather resign
from the management than be imposed
upOn by G lot Of people who did not know
what they were entitled to and what was
other peoples property.
Then he took the train and started direct
TO London. But the British directors eyi-
IDENTITY were as stubborn when seen as they
bad been when they were written to, for
the colonel returned, and Immediately after
70
manager TO London.
How it was accepted, and how c. B. Stone
was selected TO succeed him, are matters OF
recent date and need not be Iecapituiated,
but the fact that Mr. Dencke actually paid
that $50, GOO TO the syndicate will be mat
ter of surprise to many.
When seen by CALL reporter Colonel
Denicke did not like 10 discuss the matter.
1t is private affair and all settled" said
he. II paid the money. or at least | re-
IA . H..
attorneys, and because l knew that a re-
fusal on my part would cause n lawsuit,
which would have given me much annoy
ance."
THE LONDON GRIEVANCE.
The authorized capital OF the combined
breweries is 900, consisting OF $4,000
cumulative preference shares OF the par
value OF SO and drawing 8 per cent interest
$1,000 ordinary shares OF the same par value
and 5000 6-peF-cent mortgage debentures Of
the par value each of e100.
Something Of the nature OF the grievance
of the London spectators may be under
stood by reading the following extract from
the April issue Of Duncan's Monthly Re-
port on Brewery Securities. London pub
lication:
The half year Of the San Francisco Brew
cry ended on the 31st of October, but 1t was
the end of February before the directors
announced that the earnings did not admit
of an interim dividend being paid on the
preference shares. A fortnight before this
announcement the ordinary shares were
quoted Az and the preference shares ~,
but before the announcement was made
they had declined respectively to 2A and
5R, thus showing that some one was taking
advantage of the diiatoriness of the drec-
tors in making their partners aware of the
position OF tbeir property. This is not the
first time in the brief history of this COM
pany where similar coincidence has oc-
Cured"
There is no complaint from any quarter
that the interest on the bonds has not been
regularly paid. The real basis of complaint
is because of the terrible shIinkage on the
London stock exchange Of both the bonds
and both classes of shares. The debentures
have fallen from el00 to from $50 to eS5.
the preferences from ff0 to from e. IS to
95 los, and the 0rdinaries from $40 10 from
e. lbs Cd to 81 lis Cd.
TIE LOCAL INVESTORS.
With the San Francisco debenture- hold
ers it is another story They cannot find
market Tor their interest-paying securities.
When they sold their breweries they enter
tanned high hopes that the bonds which
they accepted at their par value
would soon command a premium. These
great expectations have not been
fulfilled. They cannot raise more than 40
per cent of the market value Of their deben-
lures In loans from the local banks with
the debentures as collateral. These securi-
ties are not listed on any stock exchange
either In this country or abroad, and the
situation OF affairs is by no means pleasant
to the dehenture- holders, of whom Mr..
robert L. Wieland is the heaviest in San
Francisco.
Mr.. Stone, the local manager, attributes
the dlscontent principally to the exagger-
ated estimate Of the profits to accrue to all
parties concerned in the reorganization
The London promoters of the deal assured
investors in the stock that The dividends
would not he less than 1G per cent, aud there