MONEY & BANKING: Beer & Adulation

MONEY & BANKING

“It’s the most high-handed thing ever handed down.” Such was the comment of Garnett C. Skinner last July when a Chicago judge awarded Prima Co., one of five Chicago breweries that survived Prohibition, $568,895 damages because its business had allegedly been run into the ground (TIME, July 26). The damages were against two of Chicago’s big banks, First National and Harris Trust & Savings. They had lent Prima Co. a considerable sum,’had become alarmed about their loans, so the Harris Bank suggested that Garnett C. Skinner (a onetime Hearst advertising supervisor) be put in charge of the brewery to revitalize it. During his regime Prima sales dropped from 30,000 bbl. to 5,000 bbl. per month. Prima sued the banks and won. to the tune of the judge’s savage remarks about banking practices.

Last week the seventh Circuit Court of Appeals reversed the decision, ruled that the banks were not responsible for losses during the Skinner regime. The court found that Prima had never complained about Manager Skinner’s work; had, on the contrary, indulged in “praise which amounted at times to adulation.” Meanwhile, Garnett Skinner has become general manager of the Springfield, Ill. Brewing Co.