Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-02-26
BREWING COMPANY SUED
Bill in Equity for a Receiver. Injunction
Account and Discovery.
Proceedings Before Judge NicoII i'm
Circuit Court of Alexandria
Countrywide Issued.

A bill in equity was filed today in the
Circuit Court of Alexandria county. Va, by
Attorneys Alexander II. Bell and Leon To-
briner of this city and R. Walton Moore OF
Fairfax on the behalf of John B. Nieren-
dorf against the Consumers Brewing Com
pany of Rosslyn, Va
The complainant alleges the Incorporation
of the company in 1895 by Edward L. Jor-
dan and six others; that each of the incor-
porators contributed $500 with which to
purchase site for brewery; that they
purchased the site at Rosslyn for 50. 40
paying one-third thereof in cash and secur-
ing the balance by a deed of trust; tina,
they then conveyed the property to the
company subjected to the incumbrance for
S2bO.O00 worth of stock, which was issued
to the seven incorporatorS in blocks of over
$4,000 each; that the only consideration
the incorporators paid for their stock was
the 500 which they had severally paid on
the, ground; that the company was capital
ized at Sob.OOO, and, after deducting $780,
eto for themselves, the incorporators at
tempted to sell the remaining S24o.ooo OF
stock and with the proceeds erect a plant;
but owing to the failure of the in
corporators to sell the treasury stock
the completion of the work was threat
ened, because a payment of $4,000
was due to Chas kaestner s. Co, the
builders of the brewery; that in order To
complete the building complainant alleges
ne was induced by certain representations
TO purchase Slo,0O0 worth of stock and be-
come the brewmaster and superint enden,
OF the company. that he put UP his $1,000
which was turned over to the builders and
the completion of the plant was made pos
Slble; that the plant was completed and the
company embarked in business the ineor-
porators electing themselves to the offices
of said company.
Further Allegations.
1t is further charged that these officers
mismanaged the affairs of the company by
voting all the treasury stock unsoId and
some Of their own stock, which amounted
together to about S26O,0oJ to Messrs. Ber-
nard Katz and Philip Katz, who are de-
PENDANTS in the suit, as bonus for taking
so0o,Ooo of the bonds of the company which
the officers then proceeded to issue and Sc
cure by mortgage upon the plant and
the property of the company: that this
transaction in stock gave MeSsrs. katz the
control of the company, who thereupon
caused themselves to be elected officers in
the company, and that they placed Abe
King, the son-in-law of one of them, in
charge Of the company as secretarS-treas-
urer and voted to him and the president
EdWard J. Jordan, salaries of 5000 year
each. although at the same time the salary
of the complainant was cut down $500 Der
year on the plea Of poor business.
The bill further alleges that the persons
in charge have so msmanaged the affairs
OF the company that the S3N,oiH raised on
the bonds, all the receipts of the business
and other moneys, amounting in the aggre-
gate to $300.00O. has been expended in the
past year: that the officers have recently
incumbered the property of the company to
the extent of 100000 by second mortgage
and bond issue.
Mr.. Nierendorf filed as an exhibit to his
bill copy of the record in an equity suit
herein which the company sought to have
the 1ncorporators return their stock and
alleged they had obtained it in an irregular
manner.
Charges are made that the $4,000 raised
on the two bond issues have been wasted
and not expended for legitimate needs of the
t tpn nfs ana mat tnat Is the intention Of
under the bonds and that the bona fide
stockholders will lose what they put into
the company.
receiver. Injunction, account and dis
covery is asked for.
Judge Nicol upon hearing the bill and
exhibits ordered that proper writs and a
rule to show cause, which is returnable on
March ), should Issue