The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-14
WHISKY AND PANAMA
Two Subjects Now Under Con-
gressiOnal Investigation.
oREeNHuT ON THE STAND.
He Makes Some Remarkable Statements
Concerning Distillers' Truss-Pfo-
moter Appleton on Canal.

WASHINGTON CITY, Feb. 13.-1n the
whisky trust investigation today, Stevens.
attorney for the company. entered pro-
test against inquiry into the alta of the
company. It was q corporation under the
laws Of the state Of illinois and not en-
gagged in any unlawful business.
President Greenhut then took the stand
The stock of the company, he said, was
$4,000, 900. 1t originally had eighty-two
distilleries. Bynum asked how the values
OF the plants were obtained and
how they were paid for. Green
hut objected to answering the question. as
1t went into the financial affairs of the
company, and he then stated that the
plants were appraised by committee and
paid for in stock; that a number of the
plants were afteward closed, as the de-
mand for the product was not sufficient to
keep them all running. Probably
half OF the original plants were
dismantled. The small concerns and
those in favorable localities were
closed and the large ones were run to their
full capacity. The company had no
agents. its sales being made direct to
wholesalers. In answer to a question
Greenhut said that Gibson resigned
public.
When Boatner asked what the objects of
organization were, witness replied that
there were too many distilleries for the
wants of the country. Boatner asked if
the purpose was not to reduce the produc-
ton. to which Greenhut replied that it
was to do away with destructive COMPETE
ton. In reply to further questions Green
nut said his company was not trust. He
knew Of no trusts. A trust, in his
understanding. consisted of the CO.
operations of different individuals or cor
porations to limit production and to keep
up prices. His company found it could
operate fewer distilleries at less cost; sup
ply the demand by working them to their
full extent. and put its goods to the trade
at less cost. This was one object of the
company; that rebate vouchers were now
issued direct from the headquarters of the
company, but heretofore they had gone
through the hands of the wholesale deal
erS.
Boatner said that it had been stated be-
fore the committee that the price of whisky
had advanced % cents q gallon, when a
large amount Of these vouchers was out.
Greenhut said there had been no more
than usual out then. But the price had
risen on account of the agitation before
congress of looking to an increase in the
internal revenue tax on liquors. At this
time orders for spirits we've coming in very
fast. 1t was an excessive and speculative
demand, and the company advanced the
price to stop it. If it did not do so it
could have sold twice the amount of goods
it did.
Bynum asked what the market value of
the stock of the company was. Greenhut
replied that it was variable, being just
what the gamblers chose to make it.
When asked the difference between
his company and the old whisky
trust which it succeeded, Greenhut
said that what had been known
as the trust was distillers organized sep
arately and under a board of trustees, who
issued trust certificates. The object was
to prevent an Over-production, so the
plants were not allowed to produce any
more than could be sold, but that the new
company absolutely owned all the
property it controls. Greenhut's atten-
ton being called to Dewar's testimony,
and the question being asked il he
wanted to cross-examine Dewar, he said
he saw no use in doing so. Dewar's testi-
mony did not refer to his company. Glib
son had retired from the company in con-
sequence Of the matter, and the company
had nothing to do with him afterw ards and
did not pay any of his expenses in the