Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-02-14
A Protest Against Inquiry into
the Affairs
OF THE COMBINATION.
President Greenhut Takes The Stand
and Explains Matters.
A. no DrwAws TESTIMONY.
gibson Retired frosn the Company.
Pays Bis own Ex.
pcnses.

WAsniNdroS, Fob. 10. In the
whisky trust investigation today
Stevens, attorney for tho defense.
entered n protest ggainst Inquiry into
the affairs OF tho company. II was n
corporation under the laws OF illinois
and not engaged In any unlawful
business. President Greenhut then
took the stand. The stock OF the com.
pany he said was s35, 100000 and
originally had twenty three distillories.
Mr.. Bynum asked how tho values OF
plants wero obtained and how they
were paid for.
Mr.. Greenhut objected 10 rnsyerIng
The question "a II went into the fipan.
clal niiairs OF tho company, and then
stated the plants were Appraised by a
committee aud paid for Ia stock OF the
company. A number OF plants wero
a'terward closed a. the demand for tho
product was not sufficient 10 keep them
running. Probably half tho original
piania were dlsmantled. small con-
Germs ana those In favorable localities
were closed anu the large once run 10
tbeir iull capacity. The company had
no agents, their sales being made
direct To the Wholesalers.
In answer TO the question Mr..
Gfeonhut said Gibson had resigned
shortly alter the matter was mads
pubic. When Mir. BORtnur asked
what were the objects OF the organiza-
tiOn, witness replied there were too
many distillories for this wants OF the
country. Mr.. Boatncr asked n tho
purpose was not 10 reduce production.
MI. 6feenhut replied that IL was 10 do
away with destructive competition.
In reply 10 further questions Green.
nut SAID his company was not trust,
lie knew OF no trusts. A trust, in his
understanding, oonsisted Of tho co.
operation OF diiierent individuals or
corporations, TO limit tho production
anu keep up prices. His company
found they could operate fewer dis-
tilieries at q less cost TO supply tho
demand. They were working Them ut
full extent 10 put their goods 10 the
trade at less cost. This was one OF tho
objects OF the company. Rebate
YOU chefs were now issued direct from
the headquarters Of the company; here.
tofore they had gone through tho
hands 0f Wholesale dealers.
Mr.. Boatner said that II had been
stated before the committee that the
price Of whisky had advanced 25 cents
i'ur gallon when a large amount Of
t1ess vouchers were out.
MIR. Greenhut said no more than the
usual amount were out then. The
price Ind risen ON account Of tho
agitation before Congress looking 10 an
increase OF internal revenue tax on
liquors. At this time orders for spirits
were coming In very fast. II was the
excessive and speculative demand and
the company had advanced tho price
TO stop Il. IL 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 tins time Mr.. Bynum asked what
the market value VI tho stock OF the
company was. Greenhut replied that
It was variable, being just what gam.
blers chose TO make II.
Asked what the difference was be.
tween his company and the old whisky
trust which IL succeeded, Greenhut
said what WAS known as the trust VIVA
the distillers organized separately 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. Tho new company
absolutely owns all the property it
controls.
Greenhups attention being called to
Dewar's testimony and the question
being asked II he wished % cToss.ex-
anime Dewar, no said he saw no use
of doing so ma DeWaf,a te6tifnOnv did
not refer TO his company. Glhaon had
mad nothing "a. do with him after.
wards. The company did not pay any
OF Gibson's expenses IN the courts. Tho
committee then adjourned.