The morning call., 1892-02-03
THE WHISKY TRUST.
Secret Session Of the Directors
at Chicago,
President GFeenhutS Reply 10 Reflections
on His Official Acts.
Resolutions Of Confidence Adopted Prices
10 Be Reduced In Order to Re-
gain Lost Trade.
Special 10 TIKI MORNING CALI-

CHICAGO, Feb 2-The following Direc-
tors Of the Whisky Trust met in secret ses-
sion this afternoon: President GTeenhut,
J. f. French, w. II. Corning, w. n. Ho-
bart, Nelson Morris, 2. J. Hennessy and II.
L. Tyrrl.
At the meeting of the Directors Of the
Distilltrs and Cattle-feeders Company to-
day President Greenhut presented a some
what lengthy communication, dealing with
reports which have been in circulation re-
flecting on Nelson Morris and himself. He
denied tue charges which have been made
against them, and said his aim has been to
guide the affairs Of the company on a con-
servatiye basis. This policy was no: salts
factory to certain stockholders. and for
some time every means has been brought
to bear with the board to hold the market,
so as 10 show abnormal profits, etc. Mr..
Morris and himself, finding their protests
unavailing, began to fear the result and
concluded 1t was best TO sell most Of their
stock. which. he says, they had a perfect
right TO do. Nothing was done on their
part which was not TO the best interests and
for the permanent success Of the company;
but as their course was not in harmony with
those endeavoTiug TO create a fictitious
value and then sell out they have been sub
jected to abuse and accused Of trying to
bear the market. Mr.. Greenhut referred to
the efforts Of Morris and himself in pur-
chasing ,t0ck in large quantities at critical
times. when il was essential to sustain the
reputation and credit of the company, and
said they could not afford to sacrifice their
regulations by allowing the impression TO
prevail with the public that they c1unte-
nanced any of the inflated reports sent out
10 boom the stock
PRICES TOO HIGH
He had already pointed out at previous
meetings that tile company is keeping the
market for its products too high. When the
rebate system was adopted great disturb
ance was created in the trade, owing TO the
belief that the company would attempt to
squeeze 10y forcing prices abnorma.ly high
II was not until after his personal assur-
ance made al a meeting of representatives
in the trade that the policy Of the company
would be to keep prices on fair basis that
the trade became in a measure recOnciled 10
the rebate system. or late, however, there
has been growing pressure brought 10
bear by certain stockholders to ignore the
pledges made 10 the trade, and such a
policy, in connection with other matters re-
ferred t0, is, In bis Judgment. sufficient TO
cause disastrous results In conclusion Mr..
GreenGut said that wishing to make neces-
sary preparations for trip to Europe he
desired as soon as possible 10 be relieved
from further responsibility in an official
position.
RESOLUTIONS ADOPTED.
The Board of Directors unanimously
adopted a resolution refusing to accept the
resignation and recording Is absolute con-
fdelce in Greenhuts integrity.
Another resolution was adopted entirely
eXOnerating MT. Nelson Morris of charges
made in different papers, and declining TO
accept his resignation as Director.
Another resolution WAS then adopted, to
the effect that The basis price OF the product
be reduced cents per proof gallon at once,
and as IL IS the determined policy Of the
board that the price be maintained at such
a point as Will enable the company to hold
its trade at all hazards, the officers Of the
company are authorized 70 put down prices
10 such point as they may, from time 10
time, deem necessary.
lost BUSINESS.
The Directors state that their object In
giving the officers power 10 make prices IS
TO prevent any more encrOachments into
the business such as have Of late been made
Thirty per cent Of their business, they say,
has been taken from them up to the pres
ent time. and they propose TO maintain the
trade OF the company regardless of earnings
and dividends. They further state that
dividends will be suspended If necessary
until the lost business is fully recovered.
The directory will continue In session to-
morrow, when the question Of purchasing
the property now leased by the trust W i'll
be considered. The leases expire the 1st
day II May, and if the Directors decide to
purchase the leaseholds between So 600, 900
and 100000 will have 10 be provided for
that purpose. a proposition to issue addi-
tional securities to provide the necessary
funds will, il is expected, preclpitate an
other StruggIe.