The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-14
WHAT. A TRUST is.
Mr.. Greenhut's Peculiar
Logic.
HE MAKES ALL THE WHISKY.
But His Company Is Company, and
Therefore 1t Cannot Be Called
Trust.
HE MAKES ALL THE WHISKY.
Special to THE MORNING CALL.

WASHINGTON, Feb. 13.-In the whisky
trust investigation to-day Stevens, the at
tOrney for the company. entered protest
against the inquiry into the affairs OF the
company. 1t was a corporation under the
laws of Illinois, he said, and not engaging
in any unlawful business. President
Greenhut then took the stand. The stock
OF the company, he said, was S35. 600, 900.
1t originally had eighty-two distilleries.
Bynum asked how the values of plants
were obtained and how they were paid for.
Greenhut objected to answering the ques-
ton, as it went into the financial affairs Of
the company, and then stated that the
plants were appraised by a committee and
paid for In stock Of the company. a
number of plants we're afterward closed. as
the demand for the product was not suffi-
cient to keep them running. Probably half
OF the original plants were diSmantled
The small concerns and those In unfavOr-
able localities were closed and the large
ones were run to their full capacity. The
company had no agents, their sales being
made direct to the wholesalers.
In answer TO a question Greenhut said
that Gibson resigned shortly after the De-
war matter was made public.
When Boatner asked what were the OBJ
jects of the organization, the witness re-
piled that there were too many distillerjes
for the wants of the country.
BOatner asked IL the purpose was not to
reduce production, and Greenhut replied
that it was to do away with destructive COM
petition.
In reply to further questions Greenhut
said that his company was not trust. He
knew of no trusts. A trust, in his under
standing, consisted of the coo peration Of
different individuals or corporations to limit
production and keep up prices. His COM
pany found that 1t could operate fewer
distilleries at less cost. supply the demand
by working them to their full extent and
put their goods to the trade at less cost.
This was one of the objects of the company.
The rebate vouchers were now Issued direct
from the headquarters Of the company.
Heretofore they had gone through the hands
of wholesale dealers.
Boatner said that 1t had been stated be-
fore the committee that the price of whisky
advanced % cents gallon when there was
large amount of these vouchers out. and
Greenhut replied that there were more than
usual out then. The price had risen on ac-
count of the agitation before Congress
looking to an increase of the internal reve-
nue. tax on liquors. At this time orders for
spirits were coming in very fast. There
was an excessive and speculative demand
and the company advanced the price to stop
1t. Ii it had not done so it could have sold
twice the amount of goods it did He
knew of no Government officials who had
stock in the company at this time.
Bynum asked what the market value of
the stock Of the company was. and Green
hut replied that it was variable. being just
what the gamblers chose to make IT..
Asked the difference between his COM
pany and the old whisky trust, which IL
succeeded. Greenhut said that what was
known as the trust was the distillers organ
lied separately and under a board of trus-
tees, WHO issued trust certificates. TIE OBJ
iect was TO prevent overproductlon. The
plants were not allowed 10 produce any
more than could be sold. The new COM
pany absolutely owns all the property it
controls.
Greenhuts attention being called to De-
wars testimony and the question being
asked if he wished to cr0ss-examine De-
war, he said tnat he saw no use of doing so.
Dewar'S testimony did not refer to his COM
pany. Gibson had retired from the COM
pany in consequence Of the matter. and the
company had nothing to do with him after
ward The company did not pay any Of
Gibson's expenses in the courts.
The committee then adjourned