The sun., 1896-02-28
BREWERS AVID THE sxorss Law.
Many nzliliors OF Capital aud OF Annual II.
come Invoived In = Change.

sGs.y Miiliors OF Capital aus OF Annual rne
come Involved In = Change.
To THE EDITOR OF THE SuS-Sir: Tho op-
position Of the New York city bcer and ale
brewers, members OF what Is known as tho
brewers pool" to the Raines liquor tax law, 10
not based upon sentimental but material OBJ
jections of kind the nature OF which rev
people understand. The beer brewers pool. of
fcially known as Tho Lager Beer brewers
Board OF Trade" was organized In 1887. Its
membership being limited to manufacturing
beer brewers in New York, Brooklyn. Jersey
City, Long Island City. Staten Island, Newark,
and Union Hll. Its establishment followed
that of tho Brewers Exchange. Incorporated in
October. 1886. the latter representing on tts
roll OF membership more than SlOO.00o.OO0 or
invested capital In the lager beer and brewing
interests OF New York city and vicinity. Prior
TO the establishment of these two anizntions,
there was no unison OF effort between individual
brewers and ruinous war Of competition less
ened great extent the profits Of the beer trade,
and entailed upon some OF the minor concerns
extensive losses in uncollectbc accounts with
retailers. The attorneys of the Brewers Ex-
change. on its establishment and during tho
early stages of the development OF the scheme
for tho general consolidation Of brewing inter-
ests hcreabout, wero the Hon. Ashbe Il. Fitch.
also attorney for the Brewers Board Of Trade,
and GuRgenhcimcr d Untermyer, these lawyers
and the Arm Of which they are members acting
throughout as the professional advisers of the
largest brewers. Since 1887 the effects Of con-
solidation have been seen in the brewery busi-
ness. The beer brewers have got larger share
than they got before of the profits Of man.
ufacturo and SALE and the retailers less.
In 1887 tho number of barrels OF beer
sold in this city was 100000 and in tho
city OF Chicago 100000. Last year
(lsp5) tho sales Of beer in New York city were
100000 barrels an increase proportionately
smaller than the increase In population, whereas
the sales OF beer in Chicago have more than
doubled In eight years. reaching $500. 900 bar
rels in 1895. But while the brewing business
here is now more prosperous than 1t has been
at any time heretofore. tho brewers OF Chicago,
Notwithstanding the increase in the consump-
tion Of beer In that city have been compelled OF
late to foreclose many mortgages against retail
beer dealers, to the number, indeed, OF 1000.
either foreclosed or overdue. The immunity
which the beer brewers Of New York enjoy from
similar conditions is due to the effectiveness Of
their organization. This is threatened by tho
adoption of the Raihes liquor bill for taking
the saloon out of politics."
Under the existing Excise law largo major
sS h. Is hs psa Tse
o In tbs city tho
man can secure a new license to opcn a saloon
not already in operation unless m he surrender.
from men retiring from the liquor business.
This rule is absolute and makes the cash value
Of an existing license for the seller S4OO AS
soon as a saloon man desires to embark In busi-
ness he must expend us a.prelimnary investment
ing up of two other licenses at S4OO each. This
Involves preliminary OUTLAY. Of $1,000 before
board Of Excise Will Grant % lin license @ .on on s ap
plication. But the right to sell beer and liquor
nares ncedful. FOR the retailer must have not
only beer to sell. hut must also have n saloon
sSnppsa wth ShSh
mirrors. and all the embellishments OF II modern
As soon as he has secured an eligible location he
goes to one OF the large brewers and arranges
nish all the beer required, to fix up and equip the
saloon for business, ana to pay the sum required
for the new license and for the purchase of the
old licenses required. In return for this. and as
security that the retailer will repay to the
vances. but also for the beer to be furnished and
for the fixtures supplied. the retail dealer gives
rewer am NssKeen, m ne TO the ater Of bs
license. and. In some cases. though not always.
an assignment Of his interest in his lease Of Tho
saloon man begin. business subject to the condi-
tons TO which he has agreed These include the
Sy tcrsSios%Ias i bring bring the I bushes. to
ceeding TO that legal extremity. shut OF the
retailers supply Of beer. and i is one Of the
whom credit has been refused from one brewer
shall not secure it from another. Finally. when
to a brewer. the latter files with the hoard OF
Excise protest against its transfer to any other
Fl. nsnsa ss a at
brewery by selling out his business " to new
purchaser. the latter will find himself without
title. rs he cannot conduct business without .
license. and the license to his particular place
being the property of the brewers by assign.
by assuming the obligations and responsibilities
incurred by his predecessor.
An adventurous saloon keeper who should
endeavor to embark in the retail business In
disregard OF the brewers pool. would require .
would not bo able to make much headway. a.
all the best locations In town have been pre-
empted; No new location can be utilized Il, es- Z.
above explained. A new dealer, ignoring tho
brewers pool in his arrangements. could not
make as eligible an arrangement for the supply
OF beer as can retailer who has business With
one OF the breweries. The custom is to allow
piled @ the liquidation Of his other obligations
gradually paying off. at no greater cash outlay
than an independent dealer. the sum previously
advanced An independent dealer. 80 called.
would get no discount but would be expected to
pay the full face value of bills rendered by the
brewery; and he would in fact have no other
these, in their order, are the principal brew.
cries holding chattel mortgages on New York
saloons: Lion Brewery. 1000: George Ehret,
700; y. Stevenson, 900; Jacob knppert.. 65oi
John Kress Brewery. $50; James Everard, 3OOt
Henry Elias. 250; Peter poeger. ESQ: Henry
Cnuscn. 200; Bavarian Star brewery. 100;
Beadleston d, Woerz. 100: Henry Ferris. 75i
Consumers brewery. rs: Conrad stein, 10: +. u
NJ. Schaffer, 70: ID. q. ,Yucngling. 20; Finck d
sons 80. and Henry Xeltner. so. The list. how.
ever. is not complete one. for many other city
saloons are represented in the list of $500, and
brooklyn. Newark. Jersey City. and Hoboken
brewcrles In addition.
The danger which confronts the brewers In
the adoption OF the Rain-s liquor bill or any
similar measure Is this: Under 1t not only is tho
discretionary power Of Excise boards in the
granting of licenses done away with. hut so are
the Boards themselves. license under the
present Excise law. A. under all previous excise
laws since 1857. is q franchise which 1t is within
the discretion of the licensing power to either
allow or withhold The underlying principle OF
the Raines law IS that the right 70 sell liquors.
as to sell groceries, meat. vegetables or other
commodities. Is not n franchise. but an inherent
right on payment OF u certain specified sum.
Should the Raines bill be adopted. the security
to the value Of several million dollars OF the
brewers would be at once reduced to the in.
frin slr Df n ~ fnr Sor -