The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-24
THE BREWERY SYNDICATE.
Results of President Milburn's
Recent Investigations.
q Little Story About the Purchase of the
fredericksburg Brewery-some
Inside Facts

Robert Milburn, the English capitalist
and the president OF the local corporation
known as the San Francisco BrewerleS
Limited, after remaining here about five
weeks, returned few days ago to London.
MI Mlburn's visit was not one Of pleas
ure. He came for business and nearly every
hour Of his stay was devoted TO work. The
object the Englishman had in view when he
started out on his 6O00- mile trip from his
Office in the British metropolis to his office
on Market street in San Francisco was, as
he himself frankly stated, when interviewed
after his arrival, to find out why the II
breweries which his company controls in
California fail to bring the golden reward
which every capitalist expects to reap when
he invests his money in Industrial enter
prises.
1.-The brewerieS do not pay and the Lon
don shareholders wanted me to investigate
the reasons why their capital employed in
the beer-makng business in the Golden
State fails to bring the profits they anti
cipated when they engaged In tie enter
prise" Mr.. Milburn put 1t that way VIII en-
he came, and he Immediately took off his
coat. figuratively speaking, and commenced
the task intTusted TO him.
He has completed his labors now and is
on his way TO furnish his felow-capitalists
on the other side of the Atlantic with the
Information he came to seek.
The particular things Mr. Milburn dis
covered during his tireleSs search for the
secret source Of that mysterious discrep-
ancy In the profits that ought to be but are
not Will probably never be generally known,
but just before his departure he summed
the result of his laborS up by stating that
the principal cause of all the trouble lies In
the fact that the syndicate paid far more
for the breweries than their value. In other
words the men who owned the breweries
when they were separate properties, indi-
vidually and collectively, got the better Of
the bargain when they sold their business
TO the combine.
UNSATISFACTORY RETURNS.
This much being admitted by Mr.. Mil
burn, Ii Is easily understood why the
returns are not satisfactory aud not in pro-
portion TO the amount inves ted. OF course
there were a number OF minor faults dis
covered by Mr.. MilOurn, and his report to
the London directors will embrace many
points besides the one mentioned, but none
OF them OF great Importance, although 1t is
expected that they all VIII be speedily reni-
edied.
first year of the syndicate's existence. were
too high. Costly improvements had to be
made where, when the purchase was made.
it was believed no outlay of that kind
would be necessary for years 10 come.
Then there was the question OF wages,
which are much higher here than in Eng
land-a fact which had not been sufficiently
investigated at the time of the formation OF
the combine
AS to the remedy the British investors
will apply their representative did not ex-
press himself positively, but doubtless he
will have plan TO propose which, If car
ried OFT. will mend matters in time. for ne
is a shrewd business man and keen fnan-
cier.
AN INTERESTING STORY.
In speaking of the high Irice the syndi-
cate paid for the breweres 1t now controls,
a local business man who Is thoroughly IA
miliar with the affairs of the combine told
little story, which will be of great deal OF
interest to many people.
1t relates to the pure Ease OF the Freder-
icksburg brewery in San Jose, which was
owned by Colonel Ernest A. Denlcke, who
afterward became the local manager OF the
syndicate. 1t appears that the purchase
price paid for that brewery was 100000.
and that the contract included all the prop
erty belonging to the ewery-buildings.
real estate. book accounts. tools, material,
apparatus, livestock and everything else.