From the Bavarian Brewing Co.
Various corporate documents and internal communications from Bavarian Brewing Co. were obtained, as presented below.
BAVARIAN'S AUDITOR'S REPORT IN 1917
Companies a century ago needed to comply with certain accounting standards and be subject to an auditor's review, in a similar way as they do today. Some of the pages from Bavarian's auditor's report are shown below. The report was dated February 16th, 1918, and reflected operations through the entire calendar year of 1917, with occasional comparisons to the year before. Some of the documents in this report provide an interesting glimpse of the profitability and costs of the brewery at that time. After the cover page, the second document indicates a reduction in the profitability of the brewer from $137,806 in 1916 to $105,187 in 1917. This was primarily attributed to the increased costs of grains and other materials as U.S. entered WWII in 1917, as shown in the third document. It shows the average cost to produce a barrel of beer increased from $1.97 to $2.92. That's extremely inexpensive by today's standards, but this represents a cost increase at that time of about 50% in just one year. The ingredients that increased the most were malt, (corn) grits and water/fuel/supplies, which nearly doubled. The fourth item provides a breakdown of some of the prices attributable to the inventory on hand. Of interest, is the the listing of the labels, which indicates the brewery produced five beverages: 1) (Riedlin) Select (beer), 2) Bavarian (beer), 3) Bock, 4) Malt Tonic, 5) Ale and 6) Porter. Also of note is that bottles of amber, green and clear were used.
In 1932 stock offering was proposed to reopen the Bavarian Brewery the following year when Prohibition would be repealed. The cover of this solicitation is shown on the right. This offering was signed by L. S. Deglow, an architect and family member of the original founder, Julius Deglow, as President of the Bavarian Brewing Co. The entire 4-page document is available here. Evidently, this offering was never fully subscribed and the brewery was undercapitalized when it reopened a couple years later in 1935.
BAVARIAN'S OWNERSHIP AFTER PROHIBITION
Capital to operate a brewery was done through direct investments of wealthy individuals or families, but it was also often raised though public or private stock offerings. The smaller breweries that had public offerings were not traded on major exchanges, but simply on curb exchanges and the stock could be purchased at certain investments firms. Raising such funds in the early 1930s after the stock market collapse in October, 1929, would have been challenging. Bavarian was one of several other local Cincinnati breweries that had offered stock in its company in order to reopen after Prohibition.
This stock certificate was issued to Murray Voorhees on July 25, 1933, and indicates the brewery was incorporated in Delaware. Interestingly, there was obviously some anticipation to open the brewery before Prohibition ended in 1933, as the corporate seal is dated 1932. However, the brewery didn't open until a couple years after this certificate was issued. When the brewery did open Murrary Voorhees, not Julius Deglow, was President. Apparently, the wife of Murray Voorhees, who was the granddaughter of the brewery's founder, became a major lender and/or investor in the brewery.
Notices of Stock Available in
Local Cincinnati Breweries
Offering notices for Bavarian Brewing Co. common stock in the summer of 1933 were placed in newspapers in Cincinnati, Indianapolis, Wilmington, DE and other cities. Other breweries were also trying to raise capital at the same time, as shown in one of the ads. The Bavarian offering was considered "speculative" and it was apparently difficult for Bavarian to obtain capital at that time. Please scroll through the notices on the right.
BAVARIAN'S CORPORATE DOCUMENTS
Bavarian Brewing Co. fell into receivership in mid 1937 and was sold out of bankruptcy in December, 1937. The brewery was sold to the son-in-law of the founder, William C. Schott, and three of his brothers, including their family members. These four men served as the initial Board of Directors of Bavarian Brewing Co. Documents that established the Bavarian Brewing Co. under the Schott Brothers are provided below. In addition, the corporate minutes during the operation of the brewery have also been retained.
Articles of Incorporation
After it the brewery fell into bankruptcy, it needed to be incorporated under its new ownership. On the right is a document the certifies the filing of the Articles of Incorporation for Bavarian Brewing Co. by the state Kentucky on January, 26th, 1938. Formerly, the brewer had been incorporated in the state of Delaware. Please view the actual Articles of Incorporation, established a few days earlier on January 21, 1938, or the By Laws, established on January 26, 1938.
For more information about the family that acquired the brewery, please see History: Schott Family Years.
The first meeting was to ratify the Articles of Incorporation was on January 21, 1938. The first official corporate meeting was on January 26th, 1938, when the filing for the corporation was approved by the State of Kentucky. The last corporate meeting was on April 23, 1959, when sale and liquidation of Bavarian / Bavarian's to International Breweries Inc. (IBI) was approved by all shareholders and various members of the Schott family. All of these corporate minutes, spanning some 21-years, have been contained in four volumes of McMillan TyPoFaX Record Books and were obtained by a relative of the former President of the brewery, William Riedlin Schott. (Volume 1 is shown on the right.) They provide unique insight into business operation post Prohibition, before and after World War II and into the beginning of the Baby Boomer generation. There are plans to have these minutes digitized and available upon specific requests for historical research.
Any corporation has internal documents, manuals, company notices, newsletters, etc.. Below are a few items that were intended for Bavarian's employees.
Bavarian Driver Salesmen-Handbook c. Early 1950s
Bavarian had some over 35 delivery trucks with nearly twice that number in drivers and assistants to deliver Bavarian's beer to taverns and restaurants in Northern Kentucky and the Cincinnati area. In addition, Bavarian hired a number of Distributors to handle distributions especially in Dayton, other parts of Ohio and southern Indiana. However, for their own drivers, Bavarian encouraged their drivers to not only drive safely, but to be salesmen who could provide displays and help increase their deliveries. This encouragement was provided by the aforementioned manual, as well as meetings at the Bavarian Tap Room. Further, Bavarian would recognize a safe driver record of their drivers/salesmen with acknowledgement at an annual dinner meeting, where a pin, to be worn on their delivery hats, would be awarded. This annual "Driver-Helper Safety Award Dinner" was co-sponsored by Bavarian's and Columbia Transportation and was discussed in the "Bavarian's News Tap", pages 6-9, below. Also, please visit Patches and Pins, and to view the contents of the manual cover on the side, please click here.