The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-05
WHISKY TRUST RECEIVERS.
GREESHUT REMOVED AND TWO
NEW ONES NAMED.

John c. McNuIta and John }. Mitch
ell the Men Named TO Act With
MIR. Lnwrence-Thc Judge Takes
Occasion TO score stock JObbine
Directors of COrporatiops-The
whisky Trust stock Only n Chess
hoard for Speculation.
Chicago. Feb. An the United States
circuit court this morning Judge Gross
cup removed Joseph Greenhut from the
receivership of the whisky trust and APP
pointed John c. McNulta and John ].
Mitchell to act with Mr.. Lawrence. who
was appointed receiver when Mr.. Green
hut was appointed. Gen. McNulta will
be the principal or directing receiver. He
ofticiated IN that capacity during several
years tor the Wabash system of railroads.
In delivering his opinion Judge Gross
cup took occasion to score the stock
jobbing directors Of corporations, and de-
clared that Mr.. Greenhut's action in APP
ply ing for a receivership was simply an
imposition upon the court Judge Gross
cup also felt II due to himself to declare
that the action Of the court in the first
receivership proceedings was not un-
usual or smproper. The opinion of the
court is quite long, and goes into the con-
dition of affairs that led up to the re-
ownership. The judge finds that both
sides admit that a receivership Is neces-
sary and that the question is merely as
to the personnel of the receivers.
Judge Grosscup in announcing his decis-
ion said: ''Fhe admissions of counsel
upon the hearing disclose that but a small
proportion of the $4,000 shares of stock
is held for investment purposes. This
vast issue of certificates, instead of repre-
senting substantial ownership of the prop
erty of the company. is only a chess
board upon which has been played the
game OF speculation. 1t is probably nee
essary that such game should have fair
and impartial umpirage. but its appeal
/ confess does not excite my sympathy
as would that of men and women whose
real investment was tied up in this prop
erty
THE admissions in this case disclose
that Mr.. Greenhut, at the time of his
appointment, was under an agreement
upon the New York stock exchange to
deliver upon demand 1900 shares of the
company and he was not the possessor of
any of them. In such position he could
have but one personal interest; every ap-
probation of the stock amounted to
large cut into his personal fortune. As
q receiver his duty would be TO conserve
the property, and hence it's value; as
private individual his interest was to de-
pIHiiGlG It's VALUE GnQGE SUCn DIfCum
stances his acceptance of the receiver
ship was simply an imposition upon the
court The need of the day in corporate
affairs is for managers who have an eye
single to the interests of their trusts
Such men will never be found as long as
stockholders permit them to gamble upon
their securities.
Il am determined, as far as possible,
to have searching inquiry into the
affairs of this company. The only safe
rule is to touch not with the private fin
gers that which is intended only for the
official hand. For these reasons 1 shall
remove Mr.. Greenhut. I shall name
man who has no interest with any Off
cial or faction in the company, and VINO
has, by his experience in like situation,
proved himself both trustworthy and
efficient. He will be the representative
of the court, upon whose judgment the
court will largely rely. l shall associ-
ate with him one of the nominees Of
the petitioners, because of their large
interest in the assets. / think, also. the
unanimous wish of the directors should
he recognized. shall therefore associ-
ate with the principal receiver a man
whose appointment will be agreeable to
them and whose experience as distiller
will aid in the administration of the trust.
An order may be entered removing
Mr.. Greenhut and appointing John Nc
Nulta and John ]. Mitchell to act along
with Mr.. Lawrence as receivers. Gen.
NfcNulta will be regarded as the princi-
pal receiver
Nathan BijUr's suggestion of Richard
E. Hartshorn as a receiver who would
be acceptable to the New York stock
holders was ignored by the court De
cause, as he said. he wished nobody to
be a receiver who was at all interested
in the stock.
The bonds for the receivers were fixed
at $500 900 each
Mr.. Greenhut win not be discharged
from his bond until after he makes re-
port of his acts during the time he was
receiver.