The San Francisco call., 1896-01-03
WAITING FOR CHEAP BEER.
Rumor Says That There Has
Been a Break in the
Association.
ARE WORKING FOR PEACE.
Interesting Bits of Inside History of
the Trouble Among the
Brewers.

InaC one OF the DreWerleS IN the QOrtQ6Tn
part OF the City had withdrawn or will
withdraw from the Brewers Protective
a ssociation. AS might be expected this
has caused CO nsiderable uneasiness among
those of the pool who are desirous of
keeping the pool together. As it is with a
child's toy blockhouse when one block is
knocked out of the structure the whole is
very likely to tumble, so it is with the
brewery cembi Whether or not the
alleged detection is the fact remains TO be
seen when the next meeting is held.
While it is evident that many would like
to make the break in order to teach lesson
to those brewers who are underselling, still
there is feature in the organization that
causes them to estate before taking the
step. That feature is a cash bond that
every brewer is obliged to deposit binding
himself to observe the rules Of the associa-
tlon or to forfeit the amount if he flies the
track and leaves the association.
These bonds are not trivial by any
means. The cash bond of the Syndicate
(limlted) is about SIC, 900, the Milwaukee
about $1,000, the Jackson about $4,000, the
American formerly the Lafayette Brew
eIy) about $500, the Washington about
5000, and SO on, each brewery's deposit
being based upon its pro rata of the busi-
ness transacted.
1t is estimated that the total amount of
deposits reaches $50 900. This money is
put out in investments by the associa-
tion's board OF directors, and each brewer
receives the interest on his money at the
rate of 6 per cent. This bond business has
not been wholly satisfactory to all the
brewers, from what can be learned. 1t
seems that nearly all the money has been
invested in various kinds Of railroad,
han L nd nth sfn hot ~ fad
believe TO be of a fiGctuating value into
which the element Of uncertainty enters.
Again, the deposit is practically sunk for
ever, as there are few conditions under
which a brewer can recover his cash.
When Charles Kramm of the Anchor
Brewery of Oakland went out of the asso-
citation be left behind him $500 in good,
solid United States money.
These deposits, while intended in the
main TO hold the association together, are
guarantee that the brewers will not
break the association rules. The rules
are numerous and far-reaching. For ex-
ample, no brewer shall put up beer signs
about town for advertising purposes.
Brewers are not permitted to put their
own beerstands in their patrons saloons,
nor paint and furnish the interior of
saloons, nor lend money to saloon-keeper
who is a patron of another brewery; and
above all they shall not cut the price of beer
below the standard adopted by the asso-
citation. In the struggle to increase busi-
violated, so states a brewer who is thor
oughly informed upon the subject. In
discussing the situation, he said:
There are two classes of men in the associa-
ton: One is ambitious to increase business I;
the other goes on the free-and-easy principle.
business and the latter loses a part of his
patronage. The former, in order to accom-
plish his ends in q city like San Francisco,
where a certain amount of beer is consumed
annually, is obliged TO violate the rules of the
association, and this gives rise to Ill will and
ieelousies. When these two elements creep
sure to be trouble, and that is the present
situation. When brewer steals neigbbor's
trade there is sure to be war.
There is an interesting feature in the pres
ent difficulty that has not been made public.
ii you will remember, charges were made that
the Broadway and California breweries had
been and are cutting the prices of their beer,
either by direct reduction in price or by per-
mitting their drivers to spend part of the
price money back over the bar. The feature
allude to is this: The proprietors of both of
these breweries have excited the i'll will of the
others in the association in this way.
Two years ago Rohr was a commission driver
in the employ OF the Chicago Brewery. one of
the English syndicate's institutions. He pur-
chased an interest in the Broadway Brewery,
which was then turning out not over 900
barrels OF steam beer month, if recollect
HOO and 1900 barrels month. 1t is not un-
likely that that increased patronage has been
drawn largely from Rohr's patrons when he
a commission driver for the Chicago
The case is very similar with the California
Brewery. Mr.. Dftmar, one of the proprietors
OF this brewery two or three years ago, was also
a driver for the Chicago Brewery. He bought
into the California Brewery, which was then
only small concern, turning out 900 TO 1000
barrels OF beer a month; Now it turns
a month. Has the California Brewery
also largely profted at the expense of
the Chicago? If so it has been terrible cut
into the Chicagos trade. Here you see good
foundations for believing that jealousy, III will
and suspicion are creeping into the association.
As in the case of these breweries have men,
toned so with sll, and they are all at swords
points.
Those who are eager to hold the associa-
ton together are making a vigorous
struggle against the great odds. In the
hope OF keeping the combine from going
to pieces a proposition has been suggested
that it is believed will have the desired
effect. At present the drivers do most of
the business in selling beer and collecting
the money, and it is at their door directly
and indirectly that the trouble is laid.
The proposition is that all of the brewers
shall shake hands again and once more
pledge themselves to obey the associations s
rules. Then the collecting will be taken
out of the hands of the drivers and col
lectors and placed in the hands of five
collectors to be appointed by the associa-
ton. Each official collector shall work in
district by himself. All of the money
shall be turned into the association, and
from there distributed to the brewers. In
this way, it is asserted, it will be almost
impossible to cut.
There is little matter in this sugges-
ton that has not been considered. 1t will
deprive the beer wagon drivers of their in
n ri mol Jtxr hna ILL l.
come simply beer expressmen. At present
many man does good business where
he can meet his patrons on an equal foot
ing. If such course is adopted it is not
at all unlikely that the beer wagon drivers
will enter serious protest and possibly go
out on a strike. There is still another OBJ
stacle in the way. More beer could be de-
livered on the sly than would be charged
for in the accounts. Pending the next
meeting every possible suggestion is being
discussed for the purpose of holding the
association together.