The morning call., 1893-05-24
WILL THEY PAY?
Is the Big Whisky Trust
Solvent?
FRONT STREET IS WORRIED.
Dealers in Spirits Are Wondering
if They VIII Get Back Some
100000 Rebate.
FRONT STREET IS WORRIED.


the great whisky trust.
Are they to get back their rebates,
amounting to some $500, 900? That is
what is worrying them. If not, there will
be lot of big smashups. The people who
represent the trust here insist that there is
no danger, while all their customers among
the dealers are anxiously asking where in
particular they are at.
Few of the dealers in spirits would
bother about the matter at all if it we're
not for the fact that the trust, which is in
corporated under the name of the Distii-
ling and Cattle-feeding Company. owes
them great deal of money in the shape
of certificates of rebate at the rate of Z
cents per gallon held over them as sort
of club to force them to buy from no one
else. If the trust goes up they lose their
monev.
The trust charges all dealers a certain
sum for its raw spirits and alcohol, out of
which what is called whisky is made in
the cellars on Front street. Certificates
are then given by the distributing agents
here for cents per gallon, payable IN SIX
months, provided the purchaser does not
buY auy spirits from distillers outside of
the trust.
a very short time ago Jones, Murdy &
Co, c. W. Craig d Co. and Liilienthal 81
Co. were the distributing agents tor the
trust, but now all of lis business has been
pat in the hands of the Crown Distilleries
Company. the successors of Llllienthal i
Co., Of which E. r. Lilienthal is presi-
dent.
a member of one of the firms on Front
street said Yesterday:
The trust went into big speculation
when that Scott bill providing for a raise
of 35 cents per gallon in the tax on whisky
was before Congress. They thought the
bill would go through, and put in several
millions. How badly hurt they are l
can't say"
Another merchant near by said:
I'VE never had anything to do with the
trust. Their system seemed TO us all
wrong, entirely up-Ameriean and a sort of
ciEch game. We had no desire 10 tie our
selves up 10 them and so have stuck TO
dealing in aight goods instead Of spirits.
There Is good deal of talk on the street
about a smaSh-up in jane. when lot of
their rebates viii fall due. If labor and
raw material were cheaper here many Of
the dealers in raw spirits would combine
to start a distillery and forfeit their re-
bates"
A manager of one firm, which was
simply purchaser of spirits from the
: Catile-feeding company and held lot of
re ale certificates, SAID:
There IS, Of course. great deal of dis
satisfaction among all of US. We should
be very g'ad 10 discount our certificates
very literally"
Al old firm on Battery eetfeels rather
sore over the whole matter. and the
IriBciDal said:
"A smash-ur would not affect us much,
but l should be very much interested to
know on an examination of the affairs Of
the trust where all their profits have gone
for they certainly have made lot OF
money. The original leaders in the con-
Germ were better class of men than those
now in charge, and the hon es in San
francisco, winch hold some $1,000 in re-
bate certificates, express great deal f
dlStrust, and are very much afraid they
VIII not get their money back. The more
they think about it the wurse they feel
Many OF :he dealers complain that the
Crown DisilleTies Company, the success
ors OF Lillienthal & Co., are competing
with them in supplying goods tn the
saloons. They own several saloons about
town, and actually come into direct COM
petition with their own customers as agents
for TIE trust. This ls not in accordance with
the usual business methods in vogue here" "
On the other ,ide the representatives of
the Distiling and Cattle feeding Com
pany have very different story to tell,
and claim that there is no rause whatever
for any alarm in the matter. K. K. Lii
enthal, president of the Crown Distileres
Company, the authorized representative of
the Distiling and Cattle-feeding Com
pany Oh the coas said:
There Is no good reaaon for the with
drawal of the distillers enumerated in he
Associated Press kilograms of yesterday,
for they parted with their dstillery plants
at the time of the formation OF the CON-
pany, retaining only the land, on which
there IS q twenty-five years leasehOld, and
in some cases the leaseholds have been
Cancelled by purchase.
There has been some concern felt or
tie crast by holders of rebate certificates
because Of newspaper items rejecting on
the sulvency Of the company. Ii is argued
that when the Scott bill for tax advance
was introduced in Congress the company
became speculative purchasers of whisky
m whisky was ever acquired by the COM
Gany for purposes of specu alton. and that
tn meet the speculative demands of the
trade they Increased their output at that
time. leaving them with nearly 50, ,OOO. 600
worth OF goods on hand at bonded yalmes
at the time of the annual meeting in ADril
at Peoria.
This stock is their best asset available
TO rebate holders, and SHOWS the absolute
solvency nf the company and strength OF
position, that there cannot be any iusti-
liable cause for alarm. The directors of
the company are able, honest and finan-
cially strong. 1t is the intent of the direc.
tors of The company to manufacture at the
verv lowest possible cost, furnishing the
trade a as close 10 the cost of production
as possible. They mean to remain in the
business, and the statement made by tile
diSgTu1tled Peoria distillers is uuquestion.
ably made for stOck-jobbing purposes, anC
not with any Intent seriously to enter in @
business cOmpetitively with the COM
pany."