F. J. Dewe’s Brewery Co.

F. J. Dewe’s Brewery Co.
Life Span: 1882-TBD
Location: Corner of Hoyne Avenue and Rice street
Architect: NA

Lakeside Annual Directory of the City of Chicago, 1884

Dewes F. J.

Chicago and Its Resources Twenty Years After, 1871-1891, The Chicago Times Company, 1891

F. J. DEWE’S BREWERY CO.
F. J. Dewe’s Brewery Co., corner of Hoyne Avenue and Rice street. This well-known brewery has been in successful operation since 1882. During that time its beer has taken high rank, second to none of Chicago’s famous breweries. The accompanying portrait is a correct likeness of F.J. Dewes the well-known head of the house, who has been long and favorably known to the trade. The popular device of the brewery is “Hoppenund Malz Gotterhalt,” (Hops and Malt may God preserve.) The special brand of the Dewes Brewery, the “Muenchener” beer was introduced in 1889, as a beverage particularly adapted to domestic purposes. Following the example of the celebrated Jacobson brewery, of Copenhagen, Denmark, an establishment known the world over, the Dewes Brewery has first introduced in Chicago the method “Hansen” to produce absolutely pure yeast. The output of this brewery this year will be 50,000 barrels, and in the very near future the capacity will be doubled, in order to meet the greatly increasing demands of the trade.

Chicago Tribune, May 11, 1890

The purchase and consolidation of the leading Chicago breweries has finally been consummated and the details of the future management are about perfected. Russeil H. Monroe of Rochester has been at the Richelieu to this end for several weeks, and the matter is now in such shape that the stock will shortly be placed on the English market.

The proposed directors are six in London, who are not named, Russell H. Monroe of Rochester, who will join the board after allotment, and in Chicago Thies J. Lefens, William C. Seipp, John A. Orb, F. J. Dewes, L. C. Huck, George Bulien, and F. S. Winston. The offices in London will be located at Wallford court and in Chicago in the Adams Express Building.

The price to be paid by the company for the breweries and malting businesses is £1,900,000 pounds. The company will acquire all the real estate, properties, buildings, machinery, rolling stock, and all the stocks and materials which are used in the conduct of the trade. The working capital amounted at the dates on which the respective breweries were taken to over £220,000. It is estimated that a further additional amount of £30,000 will have accrued to the company from the profits of the respective businesses from these dates, making a total working capital of upwards of £250,000. The Conrad Seipp and the West Side breweries were taken possession of April 1, 1890, and the Dewes brewery, the Huck Malting company, and Bullen & Co. will be transferred Sept. 1, 1890, and from these respective dates the profits will belong to the company, less interest at the rate of 6 per cent per annum.

All expenses attending incorporation and brokerage are to be paid by the vendor. The contracts are all between the parties of the one part and Henry M. Bigelow. Further contracts are made for the resale of the above properties from Henry M. Bigelow to Russell H. Monroe and an assignment by Mr. Monroe to the company.

The new company is to be incorporated as the City of Chicago Brewing and Malting company, limited, with a capital of £1, 250,000. There will be a division into 62,500 8 per cent cumulative preference shares of £10 each, making £625,000, and 62,500 ordinary shares of £10 each, making another £625,000. In addition to these shares there will be issued $3,166,000, equivalent of £650,000, of 6 per cent first-mortgage debenture bonds of $1,000 each at par, which will be secured by a first mortgage on the whole of the freehold properties, fixed plant, and machinery of the American corporation. The debenture bonds will be redeemable in the year 1910 at 10 per cent premium, or at the option of the company issuing them at any time previous at the same premium on giving six months’ notice. Shares will be payable 10 shillings per share on application, £4 10s. per share on allotment, and the remainder in two installments of £2 10s. per share at two and four months, respectively, after allotment, or the whole may be paid up on allotment, entitling the holders to participate in division on amount paid up from dates of payment. Dividends on the preferred shares and interest on debentures are payable half yearly, and the directors have taken power in the articles of association to pay interim dividends on the ordinary shares. Of the foregoing debentures the American venders take $1,871,500 (equivalent of £85,000) and of the capital stock $1,000,000 (equivalent of £200,000). The remainder of the shares and debentures will be offered at par.

The prospectus gives the history of Chicago’s growth and terms it the most progressive of all American cities. It lays great stress on Chicago’s capture of the World’s Fair, and states that since that event the values of property have been greatly enhanced. It also states that the increase in the consumption of beer has even exceeded the rapid increase in the population of the city. The sales of beer in 1881 amounted to 766,866 barrels, while in 1889 they amounted to 1,848,243 barrels. The properties acquired are fully described in the prospectus, which gives the history, location, and quality of beer manufactured by the breweries purchased. The books of the five concerns sold have been examined by the company’s auditors, Price, Waterhouse & Co. of London, who certify that the net profits of corporations have been for 1886-’87, £169,000, and for 1888-’89, £205,000. Taking, however, the rate of profits atj£197,-500 per annum, which was the average of the last two years, the following results are shown:
To pay interest on £650,000 debentures at 6 per cent will require £39,000. To pay interest on £625,000, preference shares at 8 per cent, will require £50,000. To pay dividends on £625,000, ordinary shares at 15 per cent will require £92,500. This makes a total £182,750, leaving a surplus of £14,750 per annum for management expenses and reserve, or taking the profits of the last year, a surplus of nearly £23,000 per annum.

All the properties purchased will be conveyed to the new corporation and a first mortgage given by that corporation to the Northern Trust company to secure the debenture bonds to be issued by the Illinois company. The solicitors named are F. D. Winston of Chicago and Ashurst, Morris, Crisp & Co. of London.

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