Washington sentinel., 1900-03-03
Consumers Brewing Go. Sued.

A bill in equity was filed last Monday
in the Circuit Court OF Alexandria
County, Va, by Attorneys Alexander
II. Bell and Leon Tobriner, of this city,
and R. Walton Moore, of Fairfax, on
on behalf OF John B, Nierendort against
the Consumers Brewing Company, Of
RosIYn. Va.
The complainant alleges the incorpo.
ration of the company in 1895, by Edw
L, Jordan and six others; that each of
the incorpOrators contributed $500, with
which TO purchase a site for a brewery;
that they purchased the site at Roslyn
for $s.4so, paying one third thereof in
cash and ser uring the balance by deed
OF trust that they then conveyed the
property to the company subject to the
incumbrance, for S26o 600 worth of stock
which was issued 10 the stockholders in
blocks of over $37, 600 each; that the only
consideration the incorporat urs paid for
their stock was the $500 which they had
severally paid on the ground; that the
company was capitalized at $500, 900,
and, after deductine S26o, 600 tor them
selves, the incorporators attempted to
sell the remaining 100000 of stock and
with the proceeds erect a plant; that
the building Of the plant was begun, but
owing to the failure of the lncorporators
to sell the treasury stock the completion
OF The work was threatened, because a
payment of sIo. 600 was due to Chas
Kaestner & Co., the builders OF the
brewery; that in order to complete the
building. complainant alleges he was
induced by certain representations to
purchase $4,000 worth of stock and
become the brewmaster and superiu
tendent of the company; that he put up
his SIo, 600, which was turned over to
the builders, and the completion of the
plant was made possible; that the plant
was completed and the company EN-
barked in business, the incorporators
electing themselves to the offices Of said
company.
1t IS further charged that these officers
mismanaged the affairs of the company
by voting all the treasury stock uusold
and some OF their own stock, which
amounted to about S26o 900, to Messrs.
Bernard Katz aud Philip Katz, who are
defendants in the suit, as a bonus for |
taking S2oo, 900 of the bonds Of the |
company, which the officers then pro.
ceeded 20 issue and secure by a mort. |
gage upon the plant and the property |
of the company; 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 secretary
treasurer, and voted to him and the /
president, Edward L. Jordan, salaries
OF $1,000 year each, although at the
same time the salary Of the complainant
was cut down 5000 per year on the plea
OF poor business,
The bill further alleges that the per
sons in charge have so mismanaged the
affairs Of the company that the S7oo. 700
raised on the bonds. all the receipts of
the business and other moneys, amount.
ing in the aggregate to 5 90 600. has
been expended in the past year; that
the officers have recently incumbered
the property of the company to the
extent OF Sroo 600 by second mortgage
and bond issue,
Mr.. NierendoTf filed as an exhibit to
his bill coPv OF the record in an equity
suit here in which the company sought
to have the incorpOrators return their
stock, and alleged they had obtained it
in sn irregular manner.
Charges are made that the 100000 |