The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-08-08
GOLD IN A POOL OF RUM.
THE BIG TRUST AGAIN SCANNED
BY THE COMMITTEE.


President Greenhut Produces the Arti-
cles Of Agreement-The Trust Vested
In Nine Trustees-How It Can Be
Terminated - Dividends Declared
Monthly - The Treasurer's Testi-
mony.
WASHINGTON, Aug. THE house COM
mittee on manufactures to-day resumed it's
inquiry into the whisky trust. Joseph B.
Greenhut of Peoria, president of the great
western whisky trust, produced the articles
of agreement among the eighty one organi-
cations forming the basis of the trust. and
explained that all of the property and
the capital of the distillers was pooled
and certificates Of stock issued The
organizations composing the trust are
located IN the states of Illinois, Ohio, Wis
consin, Indiana and other northern states.
Tho preamble of the agreement recites that
the purpose of the trust is to secure intelli-
gent cooperation in the business of distilI-
ing spirits from grain and other material.
mailing and the feeding of live stock, and
for the sale of its products in home and
foreign markets.
VESTED IN NINE TRUSTEES.
The agreement shows that the trust is
vested in nine trustees, whose principal
office is in Chicago. The trust certificates
are worth 800 each The trust is to con-
tinue for twenty five years from the date
Of agreement and thereafter continue until
terminated by vote of 66.2 per cent. in
the value of the holders of the certificates
at meeting called for the purpose.
The rest of the agreement is drawn largely
after the manner OF that of the sugar trust
and controls the operations of tue trust.
Once month most of the trustees meet,
examine the books and If circumstances
warrant it declare dividends Operating
under its general direction are sub boards
to control local work Their officers were
elected subject to the approval of the gem
eral board, which iE this way maintained
its control of the trust.
CONSUMPTION OF THE OUT PUT.
OF the total annual output of the trust,
4O,00O 600 gallons Of spirits, about 15 per
cent was consumed as n beverage, 5000, 600
gallons was used in the arts, and the remain
der in manufactures and wine for
tification. The witness believed that
from natural advantages such as
cheap fuel, grain and other raw material,
the domestic manufacturer of spirits was
fully able to meet European competition
without the aid of import duties, which, in
his opinion, were not necessary to enable
cur spirit makers to control the market at
home
A VERITABLE MONOPOLY.
Exclusive of the "moonshinen product.
Mr.. Greenhut believed that the association
represented by himself made S5 or 95 per
cent. OF the entire quantity of alcohol
manufactured in the country The great
bulk Of the goods produced by the trust
were sold for immediate use, and the in
ternal revenue tax was therefore paid inn
mediately. Mr. Greenhut read statement
which he had prepared for the information
of the committee. II shows that
$50, ,000, 600 worth of trust certificates have
been issued, and that since the formation of
the trust. NAV 10, 1887, SS73, ,295 in dividends
have been raid. Since january, 1888, the
monthly dividend has been one-half of l
per cent.
NECESSITY Eoh THE TRUST.
The necessity for the formation of the
trust, 1t says, grew out of the fact that q
large export demand had sprung upin 1878,
and had subsequently, declined after many
new distilleries had been erected to meet
this increased demand The cause of the
decline was bounty given by the German
government on exported alcohol, allowing
German spirits to underbid American made
goods. When this demand failed
it was found, the statement says,
that there was five times as
much goods produced as could be
marketed, and after working under various
pools, the present trust was formed. Out
of 100000 gallons annually produced in
this country 100000 IS produced by the
houses in the trust This fact, il saws pre-
vents excessive prices being charged by
trust houses, and compels them to depend
for existence on economy in the manufact-
ure OF the goods.
BENEFITS TO LABOR.
The formation Of the trust, 1t is further
claimed, has prevented strikes among the
coal miners and coopers located near
Peoria, and testimonials are submitted
from men in the corporations employ. that
the trust has resulted in steady and uni.
form wages to them.
Mr.. Buchanan then asked: "Do you know
of any political contributions being col
lected, paid or in any way made by this
trust, or by the corporations composing itT'
The WitDess-No, sir. We have not made
contributions to either party.
The witness was a memb Der of the National
protective association, but sai1 that the
only purpose of the association was to cir
cuate literature and furnish campaign
speakers TO combat statements made BY
prohibitionists.
TALE OF THE TREASURER.
w. NJ Hobant of Cincinnati, treasurer
of the trust, was examined in regard to the
financial part of the trust. In reply to a
question as to whether distillery put into
the trust at its valuation would be
entitled TO receive greater amount
of stock in case the distillery
should increase in earning capacity, he
replied that IL would be entitled to add.
tiOnal stock. The stock was in the hands
of the trustees as custodians for all persons
in the trust. An original owner of stock
could not obtain his stock from the trustees
il he wished to. Tho only thing be could
do would be to sell tho trust GER
ti6cates he received in exchange for
his stock. The witness concurred in tho
statement OF Mr.. Greenhut, TO the effect
that it Yves perfectly practicable and safe to
make alcohol used in the arts free of tho
duty on IL when put to other purposes.
This practically winds up the whisky trust
investigation.