Omaha daily bee., 1888-08-08
ALL ABOUT THE WHISKY TRUST
It's Objects and Methods Explained
at Length.
THE ARTICLES OF AGREEMENT.
Joseph B. Greenhut, President of the
Combination, Tesiifies Before
the House Committee on
Manufactures.
Mr.. Greenhut Testifies.

WAsHINGToN, August THE house com
mittee on manufactures resumed today the
inquiry into the whisky trust. Joseph b.
Greenhut, of Peoria, ILL.,, president of the
Great Western Whisky trust, produced the
articles of agreement among eighty-one or
ganlzations, forming the basis of the trust,
and explained that all of the property and
capital of the distlllers was pooled and GER
titcates of stock issued. Organizations COM
posing the trust are located in the states of
Illinois, Ohio, Indiana, Wisconsin and other
northern states. The preamble of agreement
recites that the purpose of the trust is to Sc
cure intelligent corporations in the business
of distilling spirits from grain and other ma
terial, the mailing and feeding of live stock,
and for the sale of their products at home
and foreign markets.
The agreement shows that the trust was
vested in nine trustees, whose principal Office
is in Chicago. Trust certificates are worth
800 apiece. The trust is to continue for
twenty-five years from the date of agree
ment, and thereafter continue until termi-
mated by a vote of 6628 per cent in value of
the holders of certificates at a meeting called
for that purpose. The remainder of the
statement is drawn up largely after the man
ner Of that of the sugar trust.
board controls the operations of the
trust. Greenhut explained that the Organi-
zation was cooperative concern intended
to insure intelligent, concerted action, but
the board of trustees meet, examine the
books, and, If circumstances warrant it,
declare dividends. Operating under its
general directions are sub-boards to
GERS are elected subject to the approval of
the general board, which in this way con-
trolls the trust. OF the total annual output
of the trust-40, ,0O00)0 gallons of spirits
about Is per cent was consumed as a bever-
age; S,000,000 gallons were used in the arts,
bp m m wi
fermentation.
The witness believed that from the nat
ural advantages, such as cheap fuel, grain
and other raw material, the domestic manu-
facturer of spirits was fully able to meet
European competition without the aid of i'm
port duties, which, in his opinion, were not
necessary to enable our spirit makers to CON
troll the market at home. Exclusive of the
''moonshine' product, Greenhut believed that
the association represented by himself made
65 to 95 per cent of the entire quantity of al
cohol manufactured in this country.
The witness said that the Western Export
association was formed in November, 1881,
for the purpose of exporting surplus goods.
The association went out of existence May 4,
1887. He thought that alcohol used in the
arts could safely be left untaXed. He said
that S30,000000 worth of trust certificates
have been issued and that since the formaI
tion of the tiust, May 10, 1887, 1913, ,296 III
dividends have been paid. Since January,
1885, a monthly dividend of one-half of per
cent has been paid. Out of 5000 600 gallons
annually produced in this country 100000
is produced by houses in the trust. One year
before the trust was formed the average
price Of spirits was l.13 per proof gallon,
with corn at "a cents per bushel, and for the
first year since the trust the average price
has been 81 .06, with corn selling at AZ cents
per Dushe. The formation of the trust bad
prevented strikes among the coal miners and
coopers located near Peoria, and he submitted
testimonials that the trust had resulted in
steady, uniform and fair wages to the men.
The committee then adjourned