The times. [volume] (Washington [D.C.]) 1897-1901, 1900-02-27
A SUIT AGAINST A BREWERY.
4 Stakeholder isks 81 Receiver for
the Consumers Company.


| John B. Nierendorf a stakeholder and
| formerly brewnaster of the Consumers
Brewing Company. in his suit against that
/ corporation. fled yesterday in the Circuit
| Court for Alexandria county. Va. reveals
a great deal of heretofore alleged I'M
| known history of the organization and
management Of the brewing company. He
| alleges that BY Misrepresentation he was
| induced to invest $4,000 in cash in the
| brewery. with the understanding that he
| was to be chosen brewmaster and super
| intendent. He further alleges that some
| time ago his salary was reduced 5000 4
year on the plea of poor business but the
president and secretary were given sala-
| ries of 5000 year each. The COMPLAIN
ant is represented by Messrs. Alexander
H. Bell and Leon Tobriner. Of this city,
and r. Walton Moore, of Alexandria, Va.
Nierendorf admits the incorporation Of
the Consumers Brewing Company in 1895
by Edward L. Jordan. Of this city, and X
others; that each of the incorporates con-
tributed $500 with which to purchase a
site for the brewer that they purchase
the site at Rosslyu for $3.50, paying one
third thereof in cash and securing the bal
ance by deed of trust; that they then
conveyed the property to the company sub
ject to the encumbrance, for 100000 worth
of stock, which was issued to the seven in
corporators in blocks of over $4,000 each;
that the only consideration the incoTrora-
tors paid for their stock was the $500
which they had severally paid on the
ground; also that the company was capt
talized at 100000. and after deducting
$500, coo for themselves, the incorporators
attempted 10 sell the remaining $2i0, 900 Of
stock and with the proceeds erect plant.
The building of the plant was begun, he
cts he failure nf he in
ccrporators to sell the treasury stock the
completion of the work was threatened, be-
cause a payment Of $4,000 was due to
Charles Kaestner & Co.. the builders Of the
brewery; that in order to complete the
building, complainant alleges he was in
duced by representations which he charges
were false to purchase $4,000 worth of
stock and become the hrewmaster and su-
perintendent Of the company; that he put
up his SO, 900, which was turned over to
the builders and the completion Of the
plant was made possible.
II is stated that the plant was completed
and the company embarked in business. the
ipcorporators electing themselves to the
offices of said company; that these officers
mismanaged the affairs of the company,
by voting all the treasury stock unsold and
some of their own stock which amounted
together TO about $500, GOO TO Messrs. Ber-
nard Katz and Philip Katz who are de
PENDANTS in the suit. as bonus for taking
s200 600 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.
This transaction in stock, II is alleged,
gave the Messrs. katZ the control of the
company, who thereupon caused themselves
to be elected officers in the company and
that they placed one Abe King, son-in-law
of one Of them. in charge of the company
as secretary-treasurer and voted to him
and the president, Edward L. Jordan. sal
aries of $4,000 a year each, although at
the same time the salary OF the complain
ant was cut down $500 per year on the
plea of poor business.
The bill further alleges that the persons
in charge have so mismanaged the affairs
of the company that the 100000 raised
on the bonds, all the receipts of the bust
ness, and other moneys, amounting in the
aggregate to $780, 600. has been expended
in the past year; that the officers have rec
emily encountered the property OF the com
pany to the extent of $780, 0G0 by a second
mortgage and bond issue.
Mr. Nierendorf filed as an exhibit TO his
bill copy of the record in an equity suit
here in which the company sought TO have
the incorpora tors return their stock and
alleged they had obtained it in an irreg-
ular manner.
Charges are made that the $500 900 rails
ed on the two bond issues has been wasted
and not expended for legitimate needs OF
the company. and that it is the intention
of the officers to have the company sold
out under the bonds. and that the bona
fde stockholders VIII lose what they put
into the company.
A receiver, injunction, account and dis
coyery are asked for, and Judge Nicol
upon hearing the bill and exhibits, ordered
that proper writs and rule to show cause
which is returnable On March s. should
issue.