More on the Westchester County Brewing Company that Operated in Pelham Before Prohibition

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Few realize that the extensive parking area behind the Village Hall building of the Village of Pelham on Sparks Avenue once was the site of a massive beer brewery, refrigeration stock house, and ice manufacturing facility operated by the Westchester County Brewing Company (often also referred to as the Westchester Brewing Company and, occasionally, as "Westchester Brewery").  The brewery operated from 1910 until about the beginning of Prohibition when it became a full-time ice manufacturing facility.

The brewery, stock house, and ice facility once was located along the Hutchinson River near Sparks Avenue in an area where, today, Tiffany & Co. (and other businesses) have back office operations.  In late 1909 and early 1910, that area was desolate and low-lying.  There were virtually no residences in the area except for a few homes (and businesses) along Wolf's Lane.  The brewery and ice facility was completed in about May, 1910.  The business had its "Office and Bottling Dept." located across the Hutchinson River in Mount Vernon.  Thus, the business often was referenced as the Westchester County Brewing Company of Mount Vernon, though its main plant was located in the Village of Pelham (Pelham Heights). 

Detail from 1914 Bromley Map With "WESTCHESTER BREWING CO."

Shown in Upper Left Quadrant of Detail Between Sparks Avenue and the

New Haven Main Line.   Source:  "Pelham and New Rochelle" in G. W. 

Bromley & Co., Atlas of Westchester County, N.Y. Pocket, Desk and

Automobile Edition, Vol. I, pp. 124-25 (NY, NY:  G. W. Bromley & Co.,

1914).  NOTE:  Click on Image to Enlarge.

I have written before about the history of the Westchester County Brewing Company.  See Wed., Jan. 07, 2015:  Westchester County Brewing Company Operated in Pelham Before Prohibition. Today's Historic Pelham Blog article documents additional research regarding the history of the company, its founders, and its facility in the Village of Pelham (Pelham Heights).  The focus of the research presented today is the serious set of financial difficulties faced by the business and its founders from its inception.

Early 20th Century Wooden Advertising Sign for the

Westchester County Brewing Company.  NOTE:

Click on Image to Enlarge.

There were two principal founders of the Westchester County Brewing Company:  William H. Ebling, Jr. of Pelham Heights who became President of the Company and William O. Hobby of Mount Vernon who became President after Ebling's untimely death.  In the months leading up to the completion of the main facility and its opening, the pair touted the new business as a sure "bonanza" and sold stock in the venture to investors throughout Westchester County and New York City.  

Although the United States economy was healthy in 1910, Ebling and Hobby over-extended themselves and their new business with debt at precisely the time the U.S. Economy moved from a twenty-year-period of rapid growth to a twenty-year-period of modest growth.  Indeed, the period from 1890 to 1910, generally, was one of economic growth in excess of 4%.  Beginning in 1910, however, there was a break as economic growth in the U.S. slowed to about 2.8% from 1910 to 1929.  The combination of slowing economic growth and too much debt turned out to be too much for the new business and its founders.

Indeed, financial strain may have played some role in the death of William H. Ebling, Jr.  He died "suddenly" on December 8, 1910, only seven months after the Westchester County Brewing Company opened its new facility near his home in Pelham Heights.  

In less than a year, the new business was in trouble.  On September 12, 1911, bankruptcy proceedings were commenced as a voluntary petition for dissolution of the business was filed.  In reality, the bankruptcy was merely a move to fend off creditors.  There were more than twenty lawsuits pending against the company at the time of filing with some nearing judgment.  According to one news account:

"The application was made because of the financial difficulties the corporation is in, and is preparatory to an application for a voluntary dissolution of the corporation.  It was also made to forestall having the plant and property levied on under judgments, as about twenty suits are now pending against the company, and have almost gone to judgment.  The bonded indebtedness of the company is secured by a mortgage for $250,000 held by the Empire Trust Company of New York to protect the bond holders.  There is due to different persons and corporations on promissory notes, the sum of $145,175.20, and for other debts and liabilities the sum of $95,496.87.  As against this immense debt, the corporation owns property buildings, plant, office furnishings, horses, wagons, harness, auto trucks and stock on hand valued at $395,568.20.  There are 114 stockholders of the corporation, scattered throughout Westchester County, New York City and in nearby Connecticut towns."

As the proceedings dragged along, the brewery continued to operate under receivers including William O. Hobby (the remaining living founder).  Hobby's own financial situation, however, grew increasingly bleak.  In March, 1915, Hobby filed for personal bankruptcy.  An account in the New York Times made clear how dire his situation had become.  It stated:

"WILLIAM O. HOBBY of Mount Vernon has filed a petition in bankruptcy, with liabilities of $182,664 and no available assets.  He has 1,000 shares of stock of the Westchester County Brewery, 720 shares Wauregan Hotel Company, 200 Elk Creek Oil and Gas Company, and 20 Mount Vernon National Bank, all of which are put in as of no value.  Most of his liabilities are for endorsing notes of the Westchester County Brewery, against which concern a petition in bankruptcy was filed here on Sept. 12, 1911.  William Hobby was President of the Company, and was also appointed one of the receivers for it.  Among his creditors are Philip Tillinghast, receiver of the Mount Vernon National Bank, $27,852; Mount Vernon Trust Company, $7,451; First National Bank of Jamaica, $4,184; Trustees of the First National Bank of Oneonta, $9,3331; Bollinger Brothers, Pittsburgh, $49,000; Frick Company, Waynesboro, Penn., $22,000, and Liberty Brewing Company, $6,631." 
 

 

Example of Beer Bottle of the "WESTCHESTER COUNTY BREWING

COMPANY" of  "MOUNT VERNON, N.Y." With Close-Up of the

Embossed Medallion of the Bottle Immediately Below.  NOTE:  Click

on Image to Enlarge.

By the late Teens, with Prohibition looming, officials of the Westchester County Brewery Company negotiated a sale of the Pelham Heights facility off Sparks Avenue to the Knickerbocker Ice Company, a supplier of ice to lower Westchester County.  In 1933, as Prohibition came to a close, there were brief efforts to reinstate a brewery on the site, although Village building inspectors halted the work.  At least two lawsuits followed with one of those suits eventually resulting in a decision to relocate the proposed brewery elsewhere. 

*          *          *          *          *
 
"Wm. H. Ebling

Attended by many people of prominence from Pelham Heights, Pelham, New York and Philadelphia, and by the Mount Vernon Lodge of Elks, the funeral services of William H. Ebling, Jr., President of the Westchester County Brewery, who died suddenly on December 8th, were held on December 12th, at Pelham Heights, N. Y.

The services were conducted by the Rev. H. H. Brown, the rector of the Church of the Redeemer, in Pelham.  Following came the ritualistic burial service of the Elks, which was conducted by the Exalted Ruler Robert R. Kallman and the officers of the lodge.  Mr. Williams, of the Mount Vernon Lodge, sang 'Nearer, My God, to Thee' and 'The Vacant Chair.'

The floral tributes were numerous and beautiful.  The honorary pallbearers were F. F. Ballinger, of Pittsburgh, Pa., Sidney A. Syme, Leon St. C. Dick, John L. Fee, E. J. Farrell, Charles Wintermeyer, Henry Muck, and William Hobby.  The body was placed in a receiving vault in Woodlawn temporarily.

Among those in attendance at the funeral were:  Edward, Harry and C. Schmidt, of Philadelphia; from New York:  Mr. and Mrs. Peter Doger, Mr. and Mrs. Charles Zoller, M. Zoller, Jr., Mr. and Mrs. Theodore Heabler, Charles Warner, secretary of the Brewers' exchange; Louis Heidenheimer and Harry E. Rauch.  Many in the list are prominent brewers."

Source:  Wm. H. Ebling, The American Bottler, Vol. XXXI, No. 1, p. 63 (NY, NY:  Jan. 15, 1911).  

"TWO RECEIVERS NOW ACTING FOR THE BREWERY CO.
-----
William Hobby and Leo Oppenheimer are Appointed in the Bankruptcy Proceedings by Judge Hough.
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ANOTHER DECISION IN THIS LITIGATION NOW
-----
Proceedings Yesterday -- Bonds Fixed at $10,000 Each -- Status Is Now of Federal Jurisdiction -- What the Attorneys Say.
-----

Judge Hough yesterday named Leo Oppenheimer, of No. 60 Wall street, New York, and William Hobby, of Mount Vernon, receivers in bankruptcy for the Westchester county brewery.  On whose application the receivers were appointed does not seem to be agreed upon as Moos, Princ and Nathan, of New York, who represent a number of creditors, claim that the appointment was made on their application while Judge Syme for the brewery corporation, says it was on their application.  The bond of the receivers was fixed at $10,000 each.

It was stated at the office of Moose, Princ and Nathan this morning by Attorney Princ that in answer to the application made before Judge Hough that the Westchester county brewery be declared in bankruptcy last week, Receiver Hobby, through
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(Continued on page 13.)

TWO RECEIVERS NOW ACTING FOR THE BREWERY CO.
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(Continued From Page One)
-----

Attorney Syme denied that the brewery was insolvent -- and denied that the petition of creditors who made the application were creditors of the Westchester county brewery.

As such an answer was filed with Judge Hough, Moos, Prince and Nathan secured an order to show cause which was returnable Monday as to why the answer of the Westchester county brewery should not be stricken -- out, on the ground that it was 'false, a sham and frivolous and interpose for the purpose of delay.'  When argument were heard on this order to show cause Monday, Moos, Princ and Nathan presented to the court a certified copy of the proceedings in the supreme court of voluntary dissolution proceedings of the brewery, which showed that the brewery was insolvent.  Other facts were brought out about the proceedings and Judge Hough ordered that the answer be stricken out and declared the Westchester county brewery to be in bankruptcy.

After that an application was made to the court that two receivers be appointed in bankruptcy for the brewery and Judge Hough made the appointments yesterday as already told.

Mr. Princ was asked this morning why it was that he requested that Mr. Hobby be appointed a receiver with Mr. Oppenheimer when in the original application he had asked for the removal of Mr. Hobby and the appointment of a receiver to take his place.  Mr. Princ said that the thought that it would be well to have Mr. Hobby retained in view of the fact that he was familiar with the business and it would be better for the creditors to have him appointed to act with somebody else.  

Judge Hough refused to appoint a receiver on September 15 but it was afterward found that money had to be raised to pay for the licenses of customers on October 1 and that it was necessary to have a receiver to do this.  Judge Hough yesterday allowed the receivers to issue certificates for $47,800 to be a first lien on the assets ahead of the mortgages.  Of this amount $34,300 is to be issued to be used solely to pay the liquor tax certificates $13,500 is to be held in a trust company as security for any damages that may arise to the non-assenting bondholders.

Judge Syme, as counsel, for Mr. Hobby when seen this morning denied that Judge Hough appointed the receivers on the application of the New York attorneys.  He declared that Mr. Hobby went before Judge Hough yesterday and stated that he was unable to get any money from the local banks on receiver's certificates and so it was necessary for him to get the money in New York.  He said that such a step would be necessary to keep the business; if it was not done it would have to close.  He declared that Judge Hough consequently appointed Mr. Oppenheimer and Mr. Hobby as receivers.  '''This appointment really makes Mr. Hobby's position -- stronger than it was before,' said Judge Syme this morning.  We beat those New York lawyers in their application to have Mr. Hobby removed and we obtained the money an hour after the appointment was made.'  

The receivers were given authority by the court to carry on the business for thirty days."

Source:  TWO RECEIVERS NOW ACTING FOR THE BREWERY CO -- William Hobby and Leo Oppenheimer are Appointed in the Bankruptcy Proceedings by Judge Hough-- ANOTHER DECISION IN THIS LITIGATION NOW -- Proceedings Yesterday -- Bonds Fixed at $10,000 Each -- Status Is Now of Federal Jurisdiction -- What the Attorneys Say, The Daily Argus [Mount Vernon, NY], Sep. 29, 1911, No. 6653, p. 1, col. 3 & p. 13, col. 1.

"Hobby Brewery in Bankruptcy
-----
276 Claims, 32 Notes and Several Contracts Unpaid.

Greatly to the surprise of everyone who heard of it, Justice Tomkins this morning appointed William Hobby of Mount Vernon, as temporary receiver of the Westchester Brewery of Mount Vernon, on the application of the Board of Directors of the institution.  Mr. Hobby immediately qualified by filing a bond for $30,000 and takes charge at once.

The Westchester Brewery stock was sold about the county and 114 invested in it.  One of the heaviest of the local investors was Henry Fulle.  Mr. Fulle served the Westchester beer at his hotel and it is quite popular there.  

The directors are:  William Hobby, Sydney A. Syme, C. Davies Tinter, William M. N. Eglenton and Henry Fulle.

When the stock was being sold the scheme was held forth as a bonanza.  There would be a refrigerator, cold storage and ice making plant in connection with it.  Stockholders from White Plains are Chas F. Armbruster, two shares; Henry Fulle, ten shares; I. V. Fowler, five shares; C. D. Horton, seven shares.  There are 276 claimants, besides 32 notes.  Hobby claims $30,000 for services as manager.

What Financial Difficulties Are. 

The application was made because of the financial difficulties the corporation is in, and is preparatory to an application for a voluntary dissolution of the corporation.  It was also made to forestall having the plant and property levied on under judgments, as about twenty suits are now pending against the company, and have almost gone to judgment.  The bonded indebtedness of the company is secured by a mortgage for $250,000 held by the Empire Trust Company of New York to protect the bond holders.  There is due to different persons and corporations on promissory notes, the sum of $145,175.20, and for other debts and liabilities the sum of $95,496.87.  As against this immense debt, the corporation owns property buildings, plant, office furnishings, horses, wagons, harness, auto trucks and stock on hand valued at $395,568.20.  There are 114 stockholders of the corporation, scattered throughout Westchester County, New York City and in nearby Connecticut towns.

The Justice has also appointed Arthur Rowland, of Yonkers, as Referee and has directed that notice be given to all creditors of the corporation to show cause before Mr. Rowland at his office in Yonkers on October 27 next at 3 p.m. why the corporation should not be dissolved. -- Westchester Co. Reporter, Sept. 1."

Source:  Hobby Brewery in Bankruptcy -- 276 Claims, 32 Notes and Several Contracts Unpaid, New Rochelle Pioneer, Sep. 9, 1911, Vol. 53, No. 24, p. 3, col. 7.


"BUSINESS TROUBLES.
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Receivers for the Westchester County Brewery Will Protect Liquor Licenses.

Judge Hough yesterday appointed Leo Oppenheimer of 60 Wall street and William Hobby of Mount Vernon receivers in bankruptcy for the Westchester County Brewery of Mount Vernon.  They are authorized to carry on the business for thirty days.  Judge Hough allows the receivers to issue receivers' certificates for $47,800 to be a first lien on the assets ahead of the mortgages.  Of this amount $34,300 is to be issued for cash, to be used solely to pay liquor tax certificates for customers, and $13,500 is to be held in a trust company as security for any damage that may arise to the non-assenting bondholders. . . ."

Source:  BUSINESS TROUBLES-- Receivers for the Westchester County Brewery Will Protect Liquor Licenses, The Sun [NY, NY], Sep. 29, 1911, p. 13, col. 5.  

"BUSINESS TROUBLES. . . .

WILLIAM O. HOBBY of Mount Vernon has filed a petition in bankruptcy, with liabilities of $182,664 and no available assets.  He has 1,000 shares of stock of the Westchester County Brewery, 720 shares Wauregan Hotel Company, 200 Elk Creek Oil and Gas Company, and 20 Mount Vernon National Bank, all of which are put in as of no value.  Most of his liabilities are for endorsing notes of the Westchester County Brewery, against which concern a petition in bankruptcy was filed here on Sept. 12, 1911.  William Hobby was President of the Company, and was also appointed one of the receivers for it.  Among his creditors are Philip Tillinghast, receiver of the Mount Vernon National Bank, $27,852; Mount Vernon Trust Company, $7,451; First National Bank of Jamaica, $4,184; Trustees of the First National Bank of Oneonta, $9,3331; Bollinger Brothers, Pittsburgh, $49,000; Frick Company, Waynesboro, Penn., $22,000, and Liberty Brewing Company, $6,631."

Source:  BUSINESS TROUBLES. . . .  WILLIAM O. HOBBY, N.Y. Times, Mar. 24, 1915, Vol. LXIV, No. 20,878, p. 16, col. 3.

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