St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-03
GUSHING OF GREENHUT
JUDGE GROSSCUP HEARS THE
WHISKY TRUST CASE.
Ants Claim to Represent Practi-
caily the Entire Number OF
Shares-Decision Monday.


the whisky trust litigation in the
United States courts opened with a
promise of sharp battle today. Judge
Grosscup took the initiative. He evil
IDENTIFY intended to find what foundation
there was for rumorS that the receivers
had not been acting in the interests of
the trust. President Greenhut was
called to the stand as soon as codrt
opened. Judge Grosscup said he in
tended to ask few questions before the
arguments for the removal of the re-
ceiyers began.
"Did you deal in any Whisky Trust
stock Monday or Tuesday," he asked
the witness.
Yes" replied Mr.. Greenhut. tues
day l bought between three and four
thousand shares on the New York mar
ket. | did not sell and have the stock
bought there
Receiver Lawrence, Mr.. Greenhut's
associate, said he neither bought nor
sold any stock.
Attorney Levi Mayer then began his
argument of the motion to GUST the re-
ceivers. In the court there were present
large numbers of persons interested in
the proceedings. Among the directors
in attendance were MessrS. Greenhut.
Beggs, Hobart, Green and Hennessy.
Nelson Morris was present, and repre-
scented by counsel. The main claims
made were that not over $4,000 shares
were represented in the petition for
Ia 10 Irn
scented over 3OO,0 shares. The trust is.
not i'll any need of receivers. having
$780, 900 in bank aud not owing over
s.. coo.
Mr.. BURY then opened the argument
for the receivers. He read an affidavit
signed by Directors Hobart, Beggs,
Greene. Freiberg and Hennessy, in
which they reviewed the financial his
tory of the trust, and asserted the need
of Il receiver. and requested the court to
retain Mr.. Greenhut, because of his i'll
innate knowledge of the affairs of the
company. The affidavit attributed the
failure to secure funds 10 pay the tax
OF spirits last September when the in-
crease of 20 cents gallon went into
effect the cause of crippling the finan-
cial condition OF the company. Nir.
BURY concluded his presentation
by reading copy of the resolution
adopted by the stockholders at the last
annual meeting approving OF President
Greenhut's administration. Mr.. Run
nels followed with explanation Of the
manner in which the bill was filed.
John s. Stevens, the regular counsel
for the trust, then closed for the trusts
interests. He charged Blur with or
ganiZing the stockholders tor the par
pose of applying for a receiver. This
fact was evident to his mind by the con-
nection of the committee of some of the
outside distileries and their attorneys.
1t was a fact that Samuel WOoiner had
engaged Moran, KrauS and Mayer to
file the quo WarrantO proceeding attack
ing the trusts charter, and the same at
torneys now appear i'll this proceeding.
Mr.. Mayer rose ami denied the asser-
ton that he was employed by Woolner,
except that Woolner was one of the
committee. Continuing, Mr.. Stevens
said be was so sure of the attack medi-
tated that he readily agreed to the APP
pointment of the receivers OIL Monday
last.
He denied that the stockholders COM
mittee had any intention Of recognizing
the trust and putting it on a sound
financial basis, and believed that re-
ownership was absolutely inevitable.
He said the stock of the company was
being made football for gamblers and
had been so used for years. He knew
of but two me II who held any Of the
stock as an investment. one $500 shares
ard the other $500 shares, both Chi
cagoans.
Mr.. Blur, addressing the court. said
that his clients had no Intention TO
apply for receiver. The financial con-
.li Aall ifS
port in December showing a surplus OF
over million dollars and the eXamina.
ton yesterday indicating an increase
over that amount.
The court cut off the argument OF the
attorney, and said he only desired the
suggestion of names of receivers. Mr..
Blur suggested the names of K. 3.
Hartshorne or John S. Waterbury, of
the New York committee. Mr.. Mayer
suggested the Illinois Trust and Savings
bank or its president, Mr.. Mitchell, and
someone who should have a knowledge
of the whisky business.
Attorney Broder said he represented
the bondholders Of the company. and in
their behalf he requested that the two
present receivers be retained.
Mr.. Mayer asserted that the holders of
the bonds were j. b. Greenhut and Mel
son Morris. MIR. Broder replied that
they held some of them, but not to
very large extent. The court requested
the parties interested to be in the court
+ DOM OIL Monday morning at 10 O'Clock,
when he would announce his determine
ton in the matter.
Mr. Mack, who has motion pending
to withdraw the names of HeinSheimer
and Wormser from the application for
the receivership, renewed his request
to have the names stricken off. The
court responded that when man came
into court with request to withdraw
his name after the action asked for had
been granted, he could not get out from
the responsibility of his acts as easy as
he got into court. However. he would
hear MIR Mack ON the MATTER OH Mnn-