The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-02-14
AFTER THE WHISKY TRUST
President Greenhaut Before the
Congressional Committee.
9 TELLS HIS STORY.
What Caused the Recent Advance in
the Price of Spirits.
Into the American End of
the Panama Canal Frauds Is Con-
tinued in New York-Judge
Jackson's Nomination.

WASHINGTON, Feb. 13.-In the whisky
trust investigation today Stevens, attor-
ney for the defense, entered protest
against inquiry into the affairs of the
company. 1t was a corporation under the
laws of Illinois and not engaged IN any
unlawful business. President Greenhut
then took the stand. The stock of the
the company he said was S35, 900, 900 and
originally had twenty-three distilleries.
Mr.. Bynum asked how the values of
plants were obtained and how they were
paid for.
Mr.. Greenhut objected to answering the
question as it went into the financial af-
fairs of the company. and then stated The
plants were appraised by committee and
paid for in stock of the company. A
number of plants were afterward closed
as the demand for the product was not
sufficient to keep them running. Prob
ably half the original plants were dis
mantled. Small concerns and those in
| favorable localities were closed and the
large ones run to their full capacity. The
company had no agents, their sales being
made direct to the wholesalers.
In answer to the question Mr.. Greenhut
said Gibson had resigned shortly after the
matter was made pu bic. When Mr..
organization, witness replied there were
too many distilleries for the wants of the
country. Mr.. Boatner asked if the pur-
pose was not to reduce production. Mr..
Greenhut replied that it was to do away
with destructive competition.
In reply to further questions Greenhut
said his company was not trust. He
knew of no trusts. A trust, in his under
standing, consisted of the cooperation OF
61ffarAnt mr. IvIH 70
limit the production and keep up prices.
His company found they could operate
fewer dlstllleries at less cost to supply
the demand. They were working them at
full extent to put their goods to the trade
at less cost. This was one of the objects
of the company. Rebate vouchers we're
now issued direct from the Headquarters
of the company; heretofore they had gone
through the hands of wholesale dealers.
Mr.. Boatner said that it had been stated
before the committee that the price of
whisky had advanced % cents per gallon
when a large amount of these vouchers
were out.
Mr.. Greenhut said no more than the
usual amount were out then. The price
had risen on account of the agitation be-
fore Congress looking to an increase of
internal revenue tax on liquors. At this
time orders for spirits were coming in
very last. 1t was the excessive and specu-
lative demand and the company had ad-
vanced the price to stop it. If they had
not done SO they could have sold twice
the amount of goods they did. He knew
of no government officials who had stock
in the company.
AT this time Mr.. Bynum asked what the
market value of the stock of the company
was. Greenhut replied that it was varia-
BILE, being just what gamblers chose to
make it.
Asked what the difference was be-
tween his company and the old
whisky trust which it succeeded,
Greenhut said what was known as the
trust was the distillers organized sepa-
rately and under board of trustees who
issued trust certificates. The object was
to prevent over production. Plants were
not allowed to produce any more than
could be sold. The new company abso-
lutely owns all the property it controls.
GreenhuG's attention being called to De-
wars testimony and the question being
asked if he wished to cross examine
Dewar, he said he saw no use of doing so
as Dewar's testimony did not refer to his
company. Gibson had retired from the
company in consequence of the matter
and the company had nothing to do with
him afterwards. The company did not
pay any of Gibson's expenses in the
courts, after which the committee ad-
iourned.