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

n
the Consumers Company.
John B. Niercndorf a stakeholder and
formerly brevmaster Of the Consumers
Brewing Company. in his suit against that
corpora lion. fled yesterday in the Circuit
Court fer Alexandria county. Va, reveals
great deal % heretofore alleged un-
known history Of he organization and
management q the brewing company. lie
alleges that b. Misrepresentation he was
Induced to invest $4,000 in cash in the
brewery. with the understanding that he
was 10 be chosen breWmaster and super
intendeut. He further alleges that some
time ago his salary was reduced $500 a
wear On the plea of poor business. but the
president and secretary we're given sala-
ries Of s., 600 year each. The COMPLAIN
ant is represented by Messrs. Alexander
II. Bell and Leon Tobriner. Of this city,
and r. Walton Moore. Of Alexandra, 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 brewery; that they purchase
the site at Rosslvn for $3.50, paying one
third thereof I'm cash and securing the tal-
ance by a deed OF trust; that they then
conveyed tho property to the company sub
| iect to the enCumbrance. for S25OO0O worth
of stock. which was issued TO the seven IN
cCrporators in blocks OF over $4,000 each;
that the only consideration the incorTora-
tors paid for their stock was the $500
which they had seyerally paid on the
ground: also that the company was capi-
talized at $500. 0O0. and after deducting
! s26O 600 for themselves. the incarporators
attempted TO sell the remaining $4,000 Of
stock and with the pro eeds erect plant
The building Of the plant was begun, he
states. but owing TO the failure OF the in
| corporators to sell the treasury stock the
icomplCtion OF the work was threatened, be-
cause a payment Of $4,000 was due to
| Charles Kaestner 4 Co. the builders Of the
| brewery; that in order to complete the
| building. complainant alleges be was in
duced by representations which he charges
were false TO purchase $4,000 worth of
stock and become the brewmaster and SUI
| perintendent OF the company; that he put
ND his SO 000 which was turned over to
the builders and the completion OF the
| plant was made possible.
| It is stated that the plant was completed
and the company embarked in business the
| incorporators elecGng themselves to the
| Offices Of said company; that these officers
| mismanaged the affairs Of the company,
by voting all the treasury stock unsold and
l
| together TO about $3.50 COO to Messrs. Ber-
nard Katz and Philip Katz who are de-
| PENDANTS in the suit. as a bonus for taking
5000 GOO Of the bonds of the company, which
| the officers then proceeded TO issue and Sc
| cure by a mortgage upon the plant and the
| property OF the company.
| This transaction in stock. II is alleged
| gave the Messrs. KatZ the control OF Inc
| 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 10 him
and the president, Edward L. Jordan. sal
aries Of S.. GOO 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 ahairs
Of the company that the $-Oo,OoV raised
on the bonds all the receipts Of the BUSH
ness. and other moneys, amounting in the
aggregate TO 5000. 600. has been expended
IN the past year; that the officers have rec
emily encountered the property OF the com
| many TO the extent of 500, 600 by second
mortgage and bond issue.
| Mr., Nierendorf filed as an exhibit 70 his
bill a copy Of the record in an equity suit
here in which the company sought to have
| the incorpOratoTs return ihtH stoch anu
alleged they had obtained it IN an lrreg-
ular manner.
Charges are made that the 100000 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 scld
out under the bonds and that the bona
hde stockholders VIII lose what they put
| into the company.
4 receiver, injunction, account and dis
coyery are asked for, and Judge Nicol
upon hearing the bill and EXHIBITS, ordeIei
that proper writs and rule 10 show cause
which is returnahle On March 8. should
| issue