The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-12-19
CIRCULAR Is ISSUED.
Stockholders Apprised Of the Conditions
Which Must Be Mt.

CIRCULAR Is ISSUED.
Stockholders Apprised Of the Conditions
Which Must Be Mt.
Peoria, Ill, Dec. 1S.-The circular issued
today by the Whiskey Trust is addressed
to the stockholders and states at the out
set that in view of the radical changes
that have taken place since the annual
meeting, the board considers it incum-
bent to make clear and concise state
ment of the affairs of the company and
the conditions that confront them at pres
ent. The board made every possible prep
artion to take advantage of the increased
tax lately enacted into a law. a large
amount of spirits and alcohol in bond had
been accumulated. The circular then re-
views the efforts of President Greenhut
and other officers to effect loan and the
difficulties they encountered. The failure
TO tax pay the goods at this critical
period was the severest blow ever ex-
perienced by the company. Great as was
the financial loss, the loss Of prestige was
much greater. Owing to the failure to
tax pay but a portion of the goods, the
trade became FESTIVE and the company
was forced to abandon the rebate system
which had been proved satisfactory in the
past THIS step forced the company TO
face new and hazardous conditions which
will require more than ordinary sagacity
and wisdom meet. The cash assets are
largely tied up in spirits but there is
enough cash to pay the rebates. The re-
bate money has in the past been used as
q working capital. and after the rebates
are paid, additional working capital will
be required. The circular proceeds:
In addition to the capital required by
this company heretofore for the conduct
of its business, ii will be necessary to pro-
vide additional capital for the distribution
of its product in the eastern territory, IS
the American distribution company
through which W distributed nf0lllPt
in that territory has violated its agree
ment with this company and has made al
iances for the purchase OF its supplies
through other channels, which would
practically disbar this company from sell
ing goods in the eastern territory (where
we have heretofore marketed nearly one
half of our product) unless this company
is placed in a position TO open its own
distributing houses in that territory.
Your directors consider il imperative that
provisions for obtaining this additional
capital be made with as little delay as
possible, as il will not be prudent or safe
for the interests of this company to give
our competitors the control of that mar
ket. The only available means at our
disposal are the $500, 900 of bonds now
held in escrow by the Central Trust COM
pany or New York as guaranty or the
rebates and s4,5Oo,0oo of the bonds which,
however, would require the action of the
stockholders before they can be issued.
I'VE have endeavored TO effect time
loan, using bonds as collateral, but regret
ton have been futile A sufficient num-
Der of bonds cannot be sold at a reasona-
bic price to tide the company over. We
herewith present statement of the COM
pany'S assets and liabilities on Dec. ],
1894, as follows:
"Assets-Stock of spirits, alcohol and
whiskies, 1925, 7S254; stock of grain. coop
erage and other materials $500, 351. u; good
book accounts, S376, 270.49; value of fire in
surance, $4,000; cash in the treasurer's
hands, $40, .43; cash in plants, $685.
1926, making total of s., 321, 29S0i.
"Liabilities-Bills payable. s156. sos. 20; re-
bates due to the trade, Sl,011, 3lT.21; ex-
pense items and other debts to January !,
1895, $4,000; surplus cas- hand cash assets,
81. 097, 476.53 Total s., 81 1884
This statement does not include the dis
ullery plants or permanent properties en-
numbered by deed of trust, securing the
100000 bonds already sold and those de-
of New York for guaranteeing the re-
bates
The circular then enumerates the plants
owned. leased or controlled by the com
pany. In the seven years the DiStilling
and Cattle Feeding and Trust and Cattle
Feeding, its successor, have been in exist
ence, 26C. 26i proof gallons have been
marketed, and the amount of dividends
paid, s6.11S. $500 The company has
about the same working capital ii started
with, but its needs are Greater, and the
Schufeldt Distributing house requires
about one-half the capital The directors
predict changes in the future: say that
spirits and alcohol will be sold in the open
market as basis, and IL will be necessary
TO practice the greatest economy if the
holds its present rank. Already
the directors have practised economy by
salaries and the number of en-
ployes.
The quo warranto proceedings are next
spoken of. If the judgment of Custer of
the lower courts is sustained the company
cannot proceed under its charter but will
be compelled to Hquidate ard reorganize
under another charter. The outcome of
the case ii is impossible to predict. The
directors emphasize the fact that the
money is not needed to pay debts but for
legitimate addition TO the business of the
company, should bring a satisfactory re-
turn on the investment.
The report concludes: II is difficult TO
estimate the amount of additionfial work
ing capital that will be required. First.
we will need al least $500,000 additional to
operate the plant. Then second il will re-
quire at least sl,000.000 additional capital
TO distribute our product in the eastern
territory.
The amount required to cancel the leases
of idle properties is difficult to estimate
but the money for that purpose must be
providd, IL being of course understood
that any plan of reorganization implies
that the stockholders elect such new di-
rectors as in their judgment will best
serve their interests Respectfully
J. 3. GREENHUT,
JOHN BEGGS.
WIN H. HOBART.
JOHN II. GREENE.
J. W. FRIEb-RG.
=. j. HENNESSEY,
Directors