

History of the Whatcom Brewing & Malting Company
(1899-1903)
In September of 1899 the Whatcom Brewery was incorporated with a capital of $40,000. The principals of the new firm were Fritz Grathwohl, pres., Ludwig Berg, manager, and Edward Lane, secretary-treasurer. The venture was not an immediate success, as the small brewery had to deal with established regional beers like Rainier, and Pacific, as well as nationals such as. Anheuser-Busch. An 1900 ad (below) promoted Washington hops, and urged patrons to buy locally to further Whatcom county prosperity.
In spite of pleas to "buy locally," or perhaps because his beer was mediocre, the business remained unprofitable. On 16 April of 1902, after struggling for 2½ years, Grathwohl sold out to a group of Bellingham businessmen for $20,000. He then relocated to Oroville, WA, where he established the Oroville Brewing Co.
Two months later, in June '02, Zynda travels to Salem, OR and purchases the city's Capital Brewery & Ice Works for $75,000. The following month the brewery is incorporated as the Salem Brewery Assn., with L. F. Schmidt, pres., and S. T. Zynda, secretary and manager.
On January 13, 1903 Schmidt went public with his takeover, and after only nine months, the revitalized Whatcom Brewery was absorbed by Schmidt's new Bellingham Bay Brewery. A number of stockholders invested $50,000 in 3-B for part of their pre-arranged buyout.
While WB&M had a fair share of the local beer market, but its greatest asset was its two 50 ton ice machines. It had the capacity to meet the entire ice needs of the area, so after the sale the brewery's ice works and cold storage continued to be utilized, but beer production ceased, with 3-B Beer remaining the sole product of the combined businesses. In 1925 the old brewery was sold and the structure later burned. It was located at 2103 Iowa St., now part of Bellingham's auto row.
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