St. Paul daily globe., 1888-08-08
The Head Of the Whisky
Trust Tells of Its Oper-
atoms.
Republican Senators Hustling
the Preparation Of a Tar
iff Bill.
Uncle Sam Branching out, as
Exhibitor at State Cir
cuSeS.
Iceberg Sherman Melts Long
Enough to Oppose the
Fisheries Treaty

WASHINGTON, Aug. THE house
committee on manufactures to-day re,
sumed its inquiry into the whisky trust
Joseph B. Greenhut, of Peoria, ILL.,,
president of the great Western whisky
trust, produced the articles of agree.
ment among eighty-one organizations,
forming the basis of the trust, and eX,
planned that all of the property and
capital of the diStilerS was pooled. and
certificates of stock issued. The organi-
cations composing the trusts are To-
Gated in the states of Illinois, Ohio,
Indiana, Wisconsin and other Northern
states. The preamble of the agreement
recites that the purpose Of the trust is
to secure intelligent cooperation in the
grain and other material; malt
ing and the feeding of live
stock, and for the sale of the
products in the home and foreign mar
kets. The agreement shows that the
trust is vested in nine trustees. whose
principal Office is in the city of Chicago.
The trust certificates are worth 500
each. The trust is to continue for
twenty-five years from the date of the
agreement, and thereafter continue un-
til terminated by vote of 6695 per cent
in value of the holders of certificates at
meeting called for the purpose. The
rest of the agreement is drawn up
largely after the manner of that of the
sugar trust. A board controls the ope-
ratiOnS of the trust. Mr.. Greenhut eX-
planned that the organization was CO.
operative concern, intended to insure
Intelligent concerted action, but not to
corner the markets. Once month the
nr1 of fr,, inn hn
books, and if circumstances warrant it,
declare dividends. Operating un-
der its general direction, there
are Sub-boards to control local work.
Their officers were elected subject to
the approval of the general board.
which in this way maintained its con-
troll of the trust. Of the total annual
output of the trust (40,000,000 gallons of
SpiritS) about Is per cent was consumed
as beverage, 100000 gallons was used
in the arts, and the remainder in manu-
facGures and wine fOrtificatiOn. The
witness believed that from natural ad-
yantages, 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 import duties, which in his opinion
were not necessary to our spirit makers
sive of the ''moOnshine" product, Mr..
Greenhut believed that the association
represented by himself made 65 or 95
per cent of the entire quantity of alco-
hOl manufactured in this country.
Witness said the Western Export as
sociation was formed in November, 1881,
for the purpose of exporting the surplus
goods. This expectation was done at a
loss in order to compete with GUrmany's
production. 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
$50, ,000,00 worth of trust certificates
have been issued, and that since the
formation of the trust, May 10, 1887,
1878, ,296 in dividends have been paid.
Since January, 1888, the monthly div
idend has been one-half of l per cent.
Out of the 75.0O0,000 gallons annually
produced in this country 100000 is
produced by houses of the trust.
Before the trust vas formed the average
price of spirits was S1.l3 per proof gal
Ion, with corn at "a cents per bushel,
and, for the first year since the trust,
the average price has been S1.06, with
corn selling at AZ cents per buShel. The
formation of the trust had prevented
strikes among the coal miners and coop
erS located near Peoria, and he submit
ted testimonials that the trust had re-
suited in steady, uniform and fair wages
to the men. William 4. Hobart, of Gin
cinnati, treasurer Of the trust, cOncurred
in the statement that it was practicable
and safe to make alcohol used in the
arts free. Adjourned. This closes the
whisky truSt investigation