Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1892-02-03
THE WHISKY TRUST
Bad Defeat for the Kicking
Stockholders.
DIRECTORY ENDORSES GREENHUI

Refusal to Accept His Resignation Fol.
lowed by Giving Him More Power
What He Says of the Men who Made
War Him-AIieged Plans of the
Trust-Competitors To lie Fought with
Low Prices The Disgruntied Waiting
for Revenge.
CHICAGO, Feb 3-Yesterday was an
eventful day in the lie of the Whisky
trust, and the disruption of the great con =
bine was seriously threatened. President
Greenhut and Director Nelson Morris
rendered their designations which were
after seven hours considarG ion rejected
by seven of the eight directors. And this
was done Notwithstanding that Greenhut
admits that he and Morris have sold Ii e
greater portion of the stock formerly held
by them. Greenhut's letter OF resignation
Is in many respects considered i most Ie-
markable document.
Why They Sold Their Stock.
In it he says: My aim has been to guide
the affairs OF this company on II conserva-
tive basis and thereby assure not only a
permanent investment to stockholders but
also satisfy the trade. This policy, how
ever, has not been satisfactory TO certain
stockholders, and for some time every
means has been brought to bear with this
board to hold the market SO as TO show alb
normal pro fits al Il to send out reports as
coming from authentic sources TO the eff
feet that the earnings of the company are
fabulous, and that we could easily pay two
or three times the amount of dividends we
are paying" He then goes on to say that
finding protests against this policy una
vailing he and Morris sold most of their
stock, which he claims they had a perfect
right to do under the circumstances.
Big Victory for Greenhut.
He then refers to the pressure from
stockholders to ignore pledges to the trade,
policy he declares to be disastrous, and
in consequence of which he desires to be
relieved from all further responsibility.
The directors We're fully prepared for the
action of Greenhut and Morris and at once
passed resolutions expressing the utmost
confidence in the two gentlemen. and de-
Ginning to accept their designations. They
even went further and increased the pow
ers of the president by adopting another
resolution which reduces the basis price of
the product of the company = cents a proof
gallon, and authorizing the officers OF the
company to put down prices to such points
as theN may from time To time deem
necessary.
Millions for New Leases.
Heretofore it has required the cons, mt
of the directors to reduce prices. The Off
GERS are further instructed to put pric
| to such IA figure ''as will enable the com
plny to hold its trade at all hazards" An
Oyher meeting OF the directors will be held
today, and it is said that the question f
purchasing leases which expire May l on
| all the properties not actually owned by
| the trust will come up on Grcenhut's mo-
ton. If it i decided to purchase the plants
indicated an expenditure OF tc-wcen : =
| 100000 and s, 600, 600 will be made.
VIII Get Even in April, Perhaps.
\ number of stockholders waited aboUt
the hotel rOtunda for the result OF yester-
| days meeting. Some of them pressed
| their dissatisfaction over the action Of he
directors in rather violent terms, but con-
soled themselves with the promise that
| they would get even in April. During that
month the annual meeting Of the stock
holders will he held at Peoria, when four
new directors will be chosen. Morris is
| authority for the statement that at least
four of the largest distilleries operated by
| the trust viii be shut down in a few days.