The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-08-25
THE BREWERS COMBINE.
Discussions That May Lead to
a
ers Are Satisfied.
Especial to .rhe Jersey city News.

Especial to 1.-THE Jersey City News."1
ELIZABETH, Aug. %, 1S9S.-The fight
being made by a number OF saloonkeepers
Of this city and Newark against the brew
ers on account of the attempt of the lat
ter to compel the retailers to pay the
whole of the wal tax of 81 a barrel, has
already resulted in a great loss of bust
ness to the brewers of Elizabeth and New
ark, and, according to some accounts. will
result in the breaking CT the combine
formed by the brewers.
The combine was formed by New Jer-
sey brewers last June, a few weeks before
the war tax went into effect. The pur-
pose of the combine, it is said, was TO
take measures to compel the retailers to
stand the tax. and the method adopted
was set forth in an agreement, it is said,
which bound all of the brewers not to sell
beer to any retailer served by another
member of the combine. This agreement,
it is reported, went into effect about the
middle of June, and was to be binding
for six months.
No sooner had the breweres announced
that they would not pay the new war tax
but would charge it to the retailers, than
the latter began a movement to fight the
brewers. They argued that the brewers
were better able to pay the tax than the
~saioonkeeper, and after a number had
held a meeting a committee called on the
brewers and asked them to pay half the
tax. The brewers refused to negotiate,
saying that the saloonkeepers must bear
the entire burden.
The brewers thought they would be able
to force the retailers into paying the tax,
as they had complete control over a large
majority of them, but the independent re-
tailers go together a few weeks ago and
organized an opposition combine, which
is so effectual that the brewers are said
to be greatly worried.
The saloonkeepers known as the indie
pendents are those who have prospered
and own their own places of business.
They are in the minority, but do a very
large business; SO large, in fact, that
when they refused to purchase any mare
beer from members of the combine the
brewers felt the loss. Then the combine
sought for means to bring back the trade
of the independents, and a competition
arose, which is still in force, and which
threatens to result in the dissolution Of
the combine.
The independents purchase their beer of
brewers in the West who are not menu
bers of the combine. The combine made
efforts, it is said, to get these brewers to
join the combine, but failed. Then a
week ago the combine held a meeting in
Newark and talked over the situation. A
number of the greatest sufferers by the
loss Of the independent trade urged that
the Best thing to do was to give in 20
the retailers and pay half the ak. The
big brewers would not agree to that, be-
cause they said they could stand the loss
| for some time longer, and as they were
in the majority no action was taken
Then a rumor spread that the refusal
of the large breweries to agree to a COM
| of a plan by the execution of which they
| hoped to freeze the smaller breweries
| out of business. The rumor caused a
stir in brewing circles, and a number of
the smaller brewers succeeded in calling
a second meeting of the ombine 1t
| was held yesterday in Newark. The
| plan of compromising with the retailers
was again talked over, and was favored
by a larger number than at the first
meeting, it is said. But again an adj
journnent was taken without any posi-
tive action, and now the smaller brew
ers are threatening to leave the combine
| and sell all the beer they can find to
| anybody who will purchase whether
he is served by another brewer or not.
The execution of the threat would
cause the brewers who should break the
| agreement to be subject to a fine of $500
| for each sale, a prohibitive amount the
large brewers claim, but several of those
| contemplating the action hold that the
agreement woul not stand the light of
law against combines. and hat the fine
would never be collected.
The threats have apparently alarmed
the big brewers, for another meeting of
the combine has been c2ued, and 1t is
| said that the compromise with the re-
| tailers viii be agreed to. Meanwhile
the Independent retailers watch the brew
ers suuirm with complacency, and say
they do not care whether the combine is
broken or not. as they are buying satis-
factory beer at satisfactory prices; and
now1have no cause for complaint.