The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-11-17
Troubles Of Worcester Brew
ing Go. Increase.

The Worcester Brewing Company Of this
city, after varied and agitated career, is
to go into the hands of a receiver. Rumors
of this sequel to long legal complication
have been rife for some time since the
creditors failed to agree upon policy to
be pursued, and yesterday the situation
unfolded itself, when q, bill in equity was
filed in the superior court praying for the
appointment of a receiver to continue the
business of the brewery until such time
as the court may order the plant to be
sold for the benefit of the mortgages.
Leander F. Herrick of this city will be
appointed receiver, as the mortgagors have
given their assent thereto, and yesterday,
when the petition was heard before Judge
John A. Aiken in the superior court the
formal appointment was deferred until to-
day, when all the legal requirements may
be complied with. Judge Aiken fixed the
bonds of the receiver at $500 and when
these have been filed with the clerk Judge
Aiken will make the formal decree APP
pointing Mr.. Herrick as receiver.
Yesterday afternoon Albert H. Waite
president of the First National Bank of
this city, as trustee under the mortgages
held on the Worcester Brewing Company,
through his counsel, Frank p. Goulding
and William C. Mellish, filed in the supe-
rior court a bill in equity against the
Worcester Brewing Company, with Chas.
Kaestner, Frank A. Hecht OF Chicago,
Fritz Goetz of New York and the First
National Bank of this city, named as the
other parties to the bill.
I 49, a.,
court appoint a receiver to proceed with
the manufacture and brewing of beer until
such a time as the plant may be sold mn
der a decree of the court. The receiver is
to collect and receive all the assets of the
concern, and make a report to the court
upon its condition.
| The appointment of the receiver is asked
on the ground that the Worcester Brew
| ing Company cannot pay its indebtedness,
and the further prayer is that the assets
and property covered by two mortgages,
may be sold under a decree of the court.
the proceeds to be applied: First, to pay
the debts under the first mortgage, and
second, the debts under the second mort
gage.
The bill contains the full history of the
organization of the Worcester Brewing
Company, when its legal troubles first be-
gan to the present time. Albert H. Waite,
the president of the First National Bank
was made trustee of the mortgages which
were given to secure notes, and the bill
seeks from the court authority to fore
close the two mortgages upon the prop
erty
The first mortgage was for $100, 900, given
Dec. 18th, 1897, to secure 100 shares of $1,000
each upon the brewery property. There
was the provision for sinking fund of
$25, 900 to make semi-annual payments of
six per cent in May and November. this to
be in gold, upon the bonds, and Mr.. Waite
as the plaintiff in the bill. alleges that
there has been a breach of this phase of
the contract by the Worcester Brewing
Company, no payments having been made
at either of the stipulated times.
Further, the bonds were to be sold to
pay Indebtedness to the First National
Bank, Charles Kaesler and Fritz Goetz,
and were held as collateral security by
the trustee, the claim of the First Ma
tional Bank being for $780, o0 while those
of Messrs. Kaesler and Goetz amounted
to $50, 600.
The second mortgage wa s.sewlse for
100000 and was made subject to the first
the mortgage bearing the date of June
LIST, 1898, being given to secure seven notes
for $1,000 each, and six for 5000. President
Waite of thesFirst National Bank holding
the mortgages as trustee.
The notes are payable Dec LIST of the
present year. and the condition was made
that the plant should be insured for $780,
OOO which part of the contract has not
been carried out. and accordingly the
trustee alleges another breach. The
mortgages covered all the property, plant,
fixtures etc. the mortgages having the
power of sale in both mortgages.
In addressing the court upon the bill,
Mr. Goulding said that the assent of the
mortgages to the appointment of re-
ceiver had been secured, and the selection
of Leander #. Herrick for that position
had been made. kilograms were shown
in court from those who were interested
in the first and second mortgages, in
which fun approval of the appointment of
Mr.. Herrick was given. The written
agreement of Mr.. Kaesler to the appoint
ment was submitted, Mr.. Waite having
telegraphed to other of the respondents
for their consent.
The court made inquiry as to the inter-
ests of the creditors, whose claims it is
understood amount to about $50 900, and as
the bondholders receive consideration be-
fore the general creditors, and the former
have agreed to a receivership, the court
will decree the appointment of Mr.. Her
rick today.
Counsel stated that the movable prop
erty of the plant was about S25, 900 in wall
ne, and Judge Aiken fixed the bonds which
Mr. Herrick win furnish at $4,000, and
he will continue the business until such a
time as the court may issue a decree for
the sale of the property for the benefit of
the creditors.
The Worcester Brewery Company has
had a stormy career since it was incor-
porated under the laws of West Virginia
in the summer Of 1896 its capital stock be-
ing S5oO,O00 of which 100000 has been paid
in From the first there have been count
less changes in the board of directors and
officers, which have more or less affected