New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-30
WAR IN A BREWERY COMPANY
CREDITORS OF THE YUENGLING CONCERN
HAVE LIVELY MEETING.
MINORITY BoNDHoLDERs SAY THAT THE MA
JoRITY EXCEEDED THEIR POWERS IN De

JORITY EXCEEDED THEIR POWERS IN DE-
FrRRING THE PAYMENT OF INTEREST.
Wall Street and the banking community were
greatly astonshed yesterday to learn of the action
OF some of the creditors ot the D. G. YuenSllng
Brewing Company at meeting OF the creditors
held AT the brewery. NEUTRALITY-SUSPICIOUS.
eghth-s; and Amsterdam-ave.. yesterday morning.
The storv % the stormy meeting OF the creditors.
which did not come until late in the afternoon.
was received with intense interest, for II recorded
an extremely unpleasant of words between rep
resenatves Of some of the best-known banks in ;he
city and the Yuengling interests. represented by
Isaac Untermeyer, of GuSgenhemer untermeyer,
and John F. Retz. the Philadelphia brewer. The
trouble began by the successful effort OF the last
named interests to pass n resolution deferrng the
payments on the coupons of the second mortgage
bonds of the company until 1900. and the effort OF
the representatives OF the banks. who were John
McAneIney. OF the Seventh National Bank; Stuyvc-
SAINT Fish, vice-president of the National Park Bank.
and other wel-known bankers 10 defeat the mo-
ton.
When the d. G. Yuenging Brewing Company got
into financial difficulties two years reorgani-
zation committee appointed and n plan was
adopted by the creditors who agreed TO take $1,000
600 Of second mortgage gold bonds to run until July
]. 1905 The interest these bonds was due on
January and July /. and In 1894 that interest was
not paid. John +. Betz then made an offer to take
the bonds. and he succeeded in getting $4,000 Of
Mr.. Betz was backed by the Yuengings, and it now
appears that this consolidated interest has endeav
ored to override the minority holders of the bonds
Their scheme 10 shut off the right OF all the
bondholders to collect the coupons and interest I'M
I'll 1909, and 20 effect that call issued for
meeting be he'd yesterday at the brewery.
4, the meeting the opposition represented by
the Seventh National Bank. the First National
Bank. II. A. Rogers. the National Park
Bank. w. r. Potts. the Villas National Bank of
u v Ranlt
OF Newtown. n. J.: the First National Bank OF
Morristown. ~ j.. and various other bondholders
who had not disposed of their holdings TO Mr. Bell
Isaac Untermeyer and Mr.. Betz ned proxies
amounting TO s72S goo Of the bonds. At the meeting
Mr.. Untermeyer caused himself TO be elected chair
man. and he endeavored 10 have his partner. Mr.
Marshall, elected secretary. Owing to the opposi-
ton of John u. Dengev, Nj Marshall was not
elected. According 10 the provisions in the bonds.
three-quar,ers of the bondholders must constitute
majority questions pertaining 10 deferring the
payment of interest on the coupons Notwthstan-
ing the fact that the Yuengling interest did MOI
have such majority. it passed resolution de1er-
ring the payment on the coupons until l*V anu t"e
minority interest said It railroaded through the eA-
tension OF the interest date without reference TO the
interests OF the other bondholders
The resolution. which introduced by MT.
Cntermeyer was somewhat follows. Whereas,
The interest due the January and July coupons
Of the second mortgage bonds Of the ID e. lueng-
ling Brewing Company, secured by deed OF trust
OF the said company to the State Trust Company.
payable by the terms OF the bonds ana the mort
gage given to secure the same. has not been paid
by reason OF the inability of the company TO devote
the payment Of the coupons without In
Turing its business and depriv!ng the bondholders
OF the benefit OF the property; be 1t
Resolved. That is for the best interests Of the
company and its creditors to defer the payment Of
interest on the second mortgage bonds. which ma
ture in 1905 January !. 1900, that the company
can meet It's present Obligations
Mr. McAnerney Stuyvesant Fish and Other bond
holders vigorously opposed this resolution on the
grounds that the proceedings were hsh-handed;
tina; NJ proper notice OF the meeting had been
given the bondholders that they had not had An
opportunity TO examine the resolution. and that no
financial statement Of the company had been made
They objected TO the right Of Mr.. Cnterme!er -
the proxies. ne was not a bondholdeT
himself. and also hi right to call the meeting
Despite the objections Mr. tnterineyer declared me
resolution carried.
At this point in the meeting Mr. McAnerney de
mandet Of Mr. Cntefmeyer wat rlgnt ne nag 10
call the meeting. and what he meant by MS h'gh-
handed action in declaring resolution carried
when three-fourths of tho oondholders We're not
Mr.. McAnerney. and declared the meeting ad-
iourned. All the opposition protested against tns'
Untermeyer and Mr.. Betz Immediately after the
meeting Mr. McAnerney called meeting OF the OPP
man. Il Was decided 70 take no further steps tnen
but 10 call meeting OF tns se iCT ,s
Park Bank.
The bondholders who opposed to Mr. Betz.
who bought up so many OF the bonds and TO MI
I'ntermeycr and The Yuenslings. not willing 10
agree to any resolution calling FOR "A delay In the
payment OF the coupons. when the company re-
fuses 10 give out a statement Of its financial
dtion. The company is now running along all right
and the minority holders declare mat the eiort
OF the Insiders defer payment on the coupons
Is not because the concern cannot pay the inter
est but because they want 10 get absolute control
OF the property and let the minority creditors go
without their money.
Most OF the banks the city took the bonds
which the company issued when IL was in financial
difficulties hut Mr. Betz succeeded In buying many
OF them 1t was represented that the company
was mo good. but the bondholders, who held
their bonds declare that IL can pay It's running
expenses and the interest the bonds well.
The meeting developed intense feeling on the
part of the minority bOndhOlders against the in
siders. and they propose TO wage vigorous war
against them. The opposition 10 the inside IN
forests Is represented by the law firm OF Dill Sey