The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-02-03
Serious Charges Are Made Against
the Controlling Clique.
OFFICERS WHO DRAW THREE SALARIES
1t Would Seem That the Most Objection
able Man in the Swing Is Presi.
dent Greenhut.

pedltS CouIIS OPSiicu Will PioAllooe Va Doo-
tie to-day. President Greenhut was called
and Judge Grosscup asked:
Ibid you deal in any Whisky Trust
stock Monday or Tuesday,"
eyes" replied Greenhut. Tuesday
bought between 5000 and 1000 shares on the
New York market. l did not sell, and have
the stock bought then"
Receiver Lawrence said he neither
bought nor sold stock. Attorney Levi
Meyer then began his argument on mo-
ton to GUST the receivers. While Meyer
was presenting the argument Greenhut
asked permission to interrupt and said he
was mistaken about the purchasing of
5000 shares of stock having been made on
Tuesday. 1t was Wednesday afternoon
that publicity had been made of the re-
ownership. To further the question of the
court he said he said he was short, how
much he did not know-not so much as
5000 shares, as declared by Mayer.
He purchased stock at 825. The price
was but a half point off from the price of
the preceding days, and not over point
off from the price prevailing the week
previous. He could not remember the
price at the time he went short. Mayer
said his clients represented 100000 shares
of stock, and since leaving New York they
had been advised of $4,000 more shares
having been placed on the list. Of the APP
plicants for receivership Olmstead was q
partner in the firm of P. ]. Goodhart &
Co., the New York brokers through which
Nelson Morris transacted business.
Olmstead was in the New York Office of
the trust. Wormser was a seventeen-year-
old boy in the Office of Goodhart. There
was $150,000 in the bank to the credit of
the trust and the Indebtedness was not
over $50 900 outside of the rebate certifi-
Gates. President Greenhut drew three
salaries and had several accounts against
which he was permitted to check. The
directors each received annually a salary
of $500 and drew other salaries as man
ayers of distilleries. Besides, President
Greenhut was interested with Nelson
Morris in cattle-feeding contracts with the
trust.
Greenhut, he said, was president of the
Cooperage and other companies selling to
the trust His bondsmen were relatives of
Morris. Lawrence was an official of the
bank in which Morris transacted business,
which bank had secured the indebted
ness of 100000 against the trust. He
knew Greenhut was $1,000 shares short;
that the directors did not hold all told
1000 shares of stock, and that several held
less than 100 shares. Olmstead, who leads
the list of three men applying for the re-
ownership, never had any stock until Mon
day, when 500 shares were transferred to
him by New York broker, an hour or two
before the application.
They would prove, continued Mayer,
that the directors did not know of the ap-
plication or the appointment of receivers.
He read an affidavit, signed by Directors
Hobart, Beggs, Greene, Freiburg and
Hennessy, in which they reviewed the
financial history of the trust and the need
of receiver, and requested the court to
retain Greenhut because of the intimate
knowledge of the affairs of the company.
RunnelIs followed in explanation of the
manner in which the bill was filed. He
said he had met Olmstead in New York and
the latter had talked over the subject of
the trusts condition and suggested the APP
pointment of receiver. Olmstead was
the holder of the stock for some time, but
he only had it recorded on Monday last.
John S. Stevens, the regular counsel of
the trust, then closed for the trusts inter-
ests. He charged Blur with organizing
the stockholders for the purpose of APP
plying for receiver. 1t was a fact that
Samuel Woolner engaged Moran Kraus
and G. Mayer to file the quo warranto pro-
ceedings attacking the trusts charter, and
the same attorneys now appear in the pro-
ceedings.
Mr.. Mayer arose and denied the asser-
ton that he was employed by Woolner
except that Woolner was one of a COM
mittee.
Continuing, Mr.. Stevens denied that the
stockholders committee had any in
tention of recognizing the trust and
putting it on a sound financial
basis and he believed that receivership
was absolutely inevitable. He said the
stock of the company was being made a
football for gamblers and had been so used
for years. He knew of but two men, both
Chicagoans, who held any of the stock as
an investment.
Mr.. Blur addressing the court said his
clients had no intention to apply for a re-
ceiver The financial condition of the
trust was excellent. The courtcut off the
argument of the attorney and said he only
desired the suggestions of names of re-
ceivers.
Mr.. Blur suggested the names of r. B.
Hartshorne or John S. Waterbury of the
New York committee. Mr.. Mayer sug-
gested the Illinois Trust and Savings Bank,
or its president, Mr.. Mitchell, and some
one who should have a knowledge of the
whisky business.
Attorney Breeder said he represented
the bondholders of the company, and in
their behalf he requested that the two pres
ent receivers be retained The court re-
quested the parties interested to be in the
courtroom on Monday morning, when he
would announce his determination in the
matter.
Mr. Mack, who has motion pending to
withdraw the names of Heinsheimer and
Wormser from the application for the re-
ownership, renewed his request to have the
names stricken off. The Court said he
would hear Mr.. Mack on the matter to-
day.
ADVICE TO THE EMPEROR.
BjIIiDfu Told I'm RpT,t M, Goad Iv;U M,