The sun., 1918-10-05
Historic Restaurant Victim
of High Expense and
Public Economy.
PROHIBITION is MENACE
Creditors and Owners Will
Make Attempt to Rescue
Institution. ~.

-
last of a long line OF eating places OF
the same name which have been
part of the city's life for nearly 100
years, has gone into bankruptcy. The
blight Of war which has curtailed the
famous banquets Of the past, the
higher cost OF running restaurant in
these days OF high wages and soaring
prices. and the shadow of coming PRO-
hibition, have combined to pile the old
establishment on the financial rocks.
The petition, which, although involun-
tary, was concurreo in by the owners
as the only means Of keeping the place
open until It 10 determined whether re-
organization is possible. was filed yes
terday In the United States District
Court by three creditors Judge Charles
NJ. Hough named Grosvenor Nicholas
and Maurice p. Davidson receivers I'M
der bonds OF $4,000. with authority
to continue the business
1t was explained by the attorneys
for the creditors and for Miss Josephine
C. Delmonico, owner of practically all
the stock, that the petition had been
anticipated for some months by both
sides.
Must Reduce Expenses.
It was made known that the receivers
will have to make radical changes In
the management and reduce expenses
considerably, and the owners believe II
may be necessary to find some one who
will take share in the ownership
and inject energy and new capital into
the business.
The liabilities are between 100000
and $3.50, 1000. with assets Of definite and
indefinite values. which are a good in
dication Of the difficulties the place has
faced. The possibility of prohibition
has more to do with the determination
of the value OF the stock and good will
or the restaurant than anything else
and prospects OF dry meals will con-
siderably diminish their Importance.
Last year Delmonicois had one of the
best years in Its history. the total bust
ness being more than 100000. BY
the first of this year. however. tht
effect sof the war began TO be felt and
dinner parties and weddings became
less frequent and more frugal. There
was a time not long ago when wedding
parties contracting promptly paid bill!
Of $4,000 or $4,000 were almost every
day affairs. But now.
Wineless Military weddings.
The head waiter told a story thu
other day that illustrated the change
A military wedding was held and in
stead of many. many guests there wer
seven who sat down to a wedding break
fast that cost IS a plate. And in
stead OF the little brooks and rivulet
OF good things to drink the guests ha'
one plain pitcher of sweet cider at
total cost Of S2.75.
The change first became noticeable
In the spring. and during the summe
the patronage fell off even more. Wit
the coming OF cool weather the res
taurant regained something of las
years busy aspect, but the receipt
did not amount to enough to offset tn
heavy overhead charges.
Tho receivers hope that II they ca
struggle through the period of the wa
again. But the probability of prohi
bition is causing the owners most con
Germ. For II they reorganize the com
pany. Paul B. Bonynge. attorney 70
Miss Delmonico, said yesterday, II ma
have to be done on prohibition basis
and just how kindly the old establish
ment will take to such a revolutionar
change Is problematical.
Noted for Generations.
1.-THE plight OF this historic establish
ment is unfortunate" Mr.. Bonynge sait
''It Is probably the oldest institutio
Of it's kind IN the city, II not In III
whole country, and for generations
has enjoyed the support and good wi
Of a clientele second to none"
James Il. Rosenberg. attorney for til
creditors. said that an effort will
made to have the rent reduced on III
lease. which has nine years to run an
is one of the valuable assets OF the CON
pany. Among the assets are bottle
goods and other stock worth betwee
$4,000 and $65,000, based on preser
prices.
Delmoncos is the last of the man
restaurants that have descended frol
the modest little place at % Willial
street, which was opened in 1927
John and Peter Delmouico. two Swis
who brought to their establishment II
nice discrimination in food and drin
which was to make their names know
all over the world. Dainty pastries ar
fine wines tempted the business men
the lower city from the palmer fare
which they had been accustomed, ar
the place soon became the haunt Of Il
prosperous business men whose HON,
\ were then on Broadway, in the neighbo
hood.
After the fire of 1895 the brothe
bought the site at Beaver and VILLA
streets and built their first large esta
lishment, which continued in the han,
OF their descendants until last winte
when it closed. They started anoth
restaurant In Broad street, near whe
the Stock Exchange is now, and lat
opened hotel at broadway and Morr
street. But as the world Of fashi,
moved north the brothers moved with
The Van Burens, the How, .nds. the A
plnwails, the Jays, the Stuyvesants al
the Fishes were some OF those who fr
quently patronized the restaurant
They went to Fourteenth street a
Fifth avenue and later to Fifth aven
and Twenty-sixth street. - the resta
rant which later became Martins.
was In this place. according to an o
employee. that lobster a la Newburl
first came into being. In October, 1875
Delmonico's moved again. still foiiowii
tho call OF fashion, and took up Its pre-
ent quarters.