The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-02-20

tilling firms met May 10, 1887, and
formed the Distillers and Cattle Feed
ers' company. The trustees were .Jo-
seph B. Greenhut, William N. Hobart,
George K Duckworth, Lewis H Green,
Peter ]. Hennessy, Alfred Bevis, War
rem Fl. Corning, Adolph Woolner and
John Fl. Francis. They were to remain
in office year, and the trust was to con-
tinue 25 years. Within year the trust
had absorbed 81 different distiIling
companies, all duly organized under the
laws of the respective states where they
did business.
In less than three years from the date
of organization the trust had absorbed
or crushed nearly all opposition, but on
Feb. IL, 1890, for the purpose of max
ing more complete and invincible the
monopoly in producing alcohol, spirits
and distillery products and for the pur-
pose of more effectually preventing COM
petition, the trustees organized under
the laws of Illinois corporation which
they called the Distilling and Cattle
Feeding company and which was CAPT.
talized at $35, 900, 900. Eight Of the
original subscribers, Greenhut, Hobart,
Corning, Green, Hennessy, Woolner,
H. L. Terrell and Nelson Morris, each
took 81, 375, 900 worth of stock, and II.
M. Kingman took $50, 0OO worth.
Four years @fter it's organization the
trust controlled IS per cent of the en-
tire production of high wines, spirits
and alcohol in the United States and
disposed of IS, 900, 900 gallons annually.
Upon entering the trust each distilling
company turned in its capital stock, and
many companies leased their distilleries
to the trust at certain rentals. Dozens
of these distilleries were shut down,
crippled or entirely dismantled, and it
was not long before IL distilleries were
doing all the work The output was cut
! down, and a masterful scheme for con-
trolling the trade was carried out by
President Greenhut The output of the
trust was disposed of to customers
through certain distributors, and with
each sale there was presented to the Gus
toner a rebate voucher promising to
pay the purchaser cents gallon on
the amount purchased at the end Of
six months provided the purchasers had
bought all his supply of such articles as
were manufactured by the trust from
the members of the trust exclusively.
Every effort was made to crush out all
opposition, and one of the trusts most
troublesome competitors, the Shufeldt
distillery of Chicago, was blown up
in a very mysterious manner. One
Thomas Dewar, United States gauger,
declared that Secretary George Gibson
of the trust gave him an Internal ma
chine and offered him $40, 900 if he
would blow up she distillery. Gibson
was deprived of his Office by the trust
and spent some time in Canada Con-
gress investigated the trust, and consid-
cradle of a sensation was caused at the
time, but nothing came of it.
Once in full control of the whisky
business, the trust began the gigantic
scheme for making money. Prices were
raised. large dividends paid, the price
OF the stock was driven up, and at the
opening of 1893 it was on the top wave
of speculative popularity. In one week
in May, 1898, $15, 900. 900 worth Of its
stock changed hands. For some time
previous the trust. relying upon what it
believed was sure t'tip'' that congress
would increase the revenue tax on whis-
ky from 80 cents to 81. %, accumulated
an enormous surplus stock of whisky in
OOAA0 Wall tAl0 4AO6 eudS HAoA COuSI6SS
increased the tax the trust would be en-
riched So cents on every gallon Of whis-
ky it possessed. It was estimated that
if the tax was increased the trust would
clear $4,000, 900 a month for many
months after the law went into effect.
There was such a public clamor about
the matter. however, that congress did
not increase the tax, and the trust lost
an enormous amount of money. The
struggle to GUST President Greenhut on
the part of the majority stockholders is
mattextef recent history The trustais