St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-04
A Sworn Statement Made by
Members Of the Whisky
Trust.
WHISKY IS HOT STUFF
But It Refuses to Go These
Days Like Hot
Cakes.
LUSTY LAST YEARS VAIL.
Why Matters Did Not Turn
Out According to Trust
Dreams.


Dreams.
PEORIA. Feb. 3.-President Joseph
B. Greenhut, of the whisky trust; Ben
j. Greenhut, his son, and John S.
Stevens, the attorney for the company,
left for Chicago Oh the late train tonight,
after having spent Sunday at home.
President Greenhnt was seen this after
noon, and asked for a statement of his
version of the reeeivership trouble. He
said that the best statement he could
N Ike was the sworn al d wit OF tie
board of directors adopted at the recent
meeting in Chicago. This statement.
lie said, cleared away the charges OF
encouragement with Which he has
been confronted on every side since the
application for receiver was made.
Up to this time he had not seen fit to
make statement, and as to the future
he could say nothing. He was asked
what steps he would take if ousted, but
declined to state sam Woolner. the in
dependent, this evening denied the state
lnent that he was i'll any way responsible
for the securing of Levy Mayer as
counsel or forming an opposition party.
The sworn statement Of the board Of
directors is addressed to Judge Gross
cup, and Is signed by all the members of
the board with the exception of PreSi
dent Greenhut himself. 1t states at the
outset that Hobart, Greene, Hennessy
and Greehhut have been directors since
the organization of the company IN
1890 and Beggs and FreibuTg since 1898.
The directors have chosen Greenhut
president at each succeeding meeting,
and he has been
Unanimously Chosen
president OF each succeeding stockheld-
ers' meeting. All the business manage
ment has been in accordance with the
directions of the board, and it has at all
times fixed prices and given directions
to the president as to the man.
agement of the business. We
further state that all said charges
of wilful mis- management or of vast
ing the assets are utterly groundless,
false and untrue. All our acts have
been according to our best judgment-in
The interest of the company and its
stockholders. and. if there has been any
error, it was an error of Judgment on
the part of the board of directors. The
accounts complained of. and especially
the issuance OF bonds, were done, as we
understand the charges. prior to the an
nual meeting of 1894. The sale OF bonds
4, n
for the issuance of the same. The
board of directors found itself confront
ed by what is considered temporary
stringency, and regarded the sale of
bonds as the best way out of the trou
bic. The annual meeting Of April. 1898,
when 81 per cent of the stock was rep
resented, ratified the bond issue and
Endorsed all that had been done by the
president and directors.
One Million Dollars
of bonds were sold. The best price
that could be obtaiued was fifty cents on
the dollar, or $500, 200, every dollar of
which went into the treasury. No COM
mission was allowed or paid. and the
money thus secured enabled US to tide
cuIties OF the quo warranto proceedings
are gone into, and tbs failure to raise
money to remove goods from bond after
the increase in tax, when up to the last
moment the board had been promised
$4,000 coo if necessary. The company IS
feeding $1,000 head of cattle under con-
tract, and the sale of its product is so
limited that it finds itself withou suffi
Gent capital. and does not consider a
further sale of bonds eXpedient. The
present condition Of the company's
finances is owing to circumstances
wholly unforeseen. beyond the control of
the directors. In all things in the
management Of the business we exer-
cised our best Judgment. Al the an
nual meeting i'll April, 1894, OF the stock
holders, at which 81 per cent of the
capital stock was represented. the
president made full report of ali that
had been done concerning the issue and
sale of bonds. including the price at
which they had been sold and the APP
plication Of the proceeds. and minute
and careful statement of the financial |
condition OF the company. All The acts
of the president and directors were
Unanimously Ratified.
approved and confirmed by the stock so |
represented at said meeting. The pro- |
test mast be by those who have pur- |
chased their stock since then, and with |
full knowledge OF all these matters. |
Since the last annual meeting III April, |
1894. the increase or tax, and the unSuc |
cessful efforts to forestali the same, and |
ri,
business. and the forced abandonment |
of the rebate system, and active compe- |
tition are the things which mainly con-
tributed TO place the company in its /
present embarrassed financial condition.
All these things were without any fault,
as we believe, of the board OF directors.
We again say that the management or !
the affairs OF said company has been by
the board of directors, and whatever
mistakes have been made have
been mistakes OF judgment only. In
our opinion it is absolutely indispensa-
bic that none of the receivers should
be a person not conVersant Win
the details of the property and business
OF the company. FruG, our association
with Mr.. Greenhut, and on account OF
his Intimate knowledge Of the property,
and his skill and experience IN the buSl-
ness, we believe that the assets or the
company can be made to realize most
with him as one Of the receivers, and
the action taken by our general solic-
itor, Mr.. Stevens, IN appearing and
recommending Mr.. Greenhut as one OF
the receivers has our approval
The statement is signed by all the
directors except President GreeHhut,
and sworn to by them.
1t is we'll to get clear of bad Cough
or Gold the first week but il is safer to