The herald., 1893-02-15
WHISKY TRUST INQUIRY
Congress Investigating the
Booze Monopoly.
President Greenhut Submits to
Examination.
He Denies That His Company Is
Real Trust.
Secretary Gibson Disowned Since the
Secretary Gibson Disowned Since the
Dewar Exposure-Compounds of
Various Essences Sold as
Choice Bourbon.
BY the Associated Press.

BY the Associated Press
WARRINGTON, Feb. 14.-In the whisky
trust investigation yesterday Stevens,
attorney for the company, entered q
protest against inquiry into the affairs
of the company. 1t was a corporation
under the laws Of Illinois, he eaid, and
not engaged in any unlawful business.
President Greenhut then took the
stand. The stock of the company, he
said, wss $S5 100000. 1t originally had
so distilleriea.
Representative Bynum asked how the
values of the plants were obtained and
how they were paid for.
Greenhut objected to answering the
question 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 were
afterwards closed as the demand for the
product was not sufficient to keep them
running, Probably half of the original
plants were dismantled. Small con-
Germs and those in unfavorable local
tiles were closed and the large ones run
to their full capacity. The company
had no agents, its sales being made di-
rect to wholesalers.
In answer to aquestion, Greenhut said
Gibson resigned shortly after the Dewar
matter was made public.
When Representative Boatner asked
what were the objects of the organiza-
tion, witness replied that there were too
many diatilleries for the wants of the
country.
Boatner asked if the purpose was not
to reduce production.
Greenhut replied that it vas to do
away with destructive competition.
In reply to further questions, Green
hut said his company was not trust.
He knew of no trusts. A trust, in his
understanding, consisted of the co-opera-
tionof different individuals or corpofa-
tions to limit production and keep up
prices. His company found they could
operate fewer distilleries at less cost,
supply the demand by working them at
full extent, and put their goods to the
trade at less cost. This was one of the
objects of the company. Rebate vouch-
ers were now issued direct from the
headquarters OF the company; heretofore
they had gone through the hands OF
wholesale dealers.
Boatner said it had been stated before
the committee that the price of whisky
had advanced % cents gallon when a
lsrgetamount of these vouchers was out.
Greenhut eaid no more than usual
were out then. The price had risen on
account of the agitation before congress
looking to an increase in the internal
revenue tax on liquors. At this time
orders for spirits were coming in very
fast. 1t WAS an excessive and specula-
tive demand and the company advanced
the price to stop it. If it had not done
so it could have sold twice the amount
of goods it did. He knew of no gov
ernment officials whoShad stock in the
company at this time.
Bynum asked what the market value
OF the stock OF the company was.
Greenhut replied that it was variable,
being just what gamblers choose to
make it.
When asked the difference between
his company and the old whisky trust
which it succeeded, Greenhut said what
is known as the trust was distillers
organized separately and under board
of trustees who issued trust certificates.
The object was to prevent over-ploduc-
tion. The plants were not allowed to
produce any more than could be sold.
The new company absolutely OWLS ell
the property it controls.
Greenbut's attention being called to
Dewar's testimony, and the question be-
ing asked if he wished to cross-examine
Dewar, he said he saw no use of doing
SO. Dewar's testimony did not refer to
his company. Gibson had retired from
the company in consequence OF the mat
ter, and the company had nothing to do
with him afterwards. The company did
not pay any OF Gibson's expenses in the
courts.
This ended Mondays testimony.
Greenhut was recalled by the commit
tee today. He said the legality of the
trusts rebate vouchers WAS decided by
the United States courts in three differ
ept cases.
William n. Hobart, treasurer of the
company and member of the firm of
Maddox, Hobart q Co., explained the
use of essences and other compounds,
and Stockdale asked if the combination
of those with spirits was whisky. He
replied that it wss q hard question to
answer. Stockdale asked if the COM
pounds were not sold for whisky. He
replied that they were, being known to
the trade as domestic goods. He told
how such goods were branded, and said
dealers knew exactly what they were.
Mr.. Stockdale--Then If customer
orders such compound and wants it
branded Bourbon, your firm does so.
Mr.. Hobart said they did as requested,
but he did not think any one was de-
ceived. About one-half of the whiskies
seen in the country contained essences.
He cDlld not say to what extent foreign
goods were initiated. The formation of
the distilling company he thought
benefit to the trade.
Dewar was called and asked how he
came to leave the distilling campany.
He replied that he made application for
a government position, and on being
appointed he resigned his place with the
trust. He was not discharged by Glib
son. His connection with Gibson had
always been friendly.
James N. Veazey, one Of the witnesses