St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-04-02
.CREENHUT WAS IN 1T.
RECEIVER M'NULTA WANTS A
CONTRACT ANNULLED.
is HEADING OFF BIG SUITS.
A Move Which Involves the Dis
tilIery at South St. Paul With
Others.

CHICAGO, April 1.-Gen. McNulta,
the receiver of the whisky trust,
filed lengthy petition on the Unit
ed States circuit court today asking
that the Nelson Norris slop con-
tract be annulled by the court. In
his application Gen. McNulta ayers
that President Greenhut, of the
trust, is a partner with Morris in
the contract, though the contract
purports to have been made solely
with Morris. The receiver also
charges the contractors with having
failed to make just report of the
profits of the business, and: says
that an accounting will show that
they are indebted to. the trust in
considerable amount The receiv-
er desires to have the contract de-
clared illegal for the purpose Of
heading off a suit for $55O,OOO which
Morris has instituted against the
trust. The contract was made on
Feb. "A, 1892, for a term of three
years. Its conditions We're that the
trust was to provide ample barn
room for all the cattle that could
be fed at the distilleries named in
the contract, and that it was to fur
nish. for each head of cattle so fed
an amount, of slop per day, as de-
rived from one bushel of mash. Nor
rls agreed to pay the sum of six cents
per day for each bushel of the slop,
during the period from Oct. of one
year to June l of the next. No
charge was to be made between
June 1 and Oct. 1; instead, the con-
tractor, after deducting all costs of
feeding the cattle, and So profit per
head, was to divide the profits above
that sum to the trust, and for such
division was to receive all slop free
during the period named. The trust
was TO notify the contractor in adj
vance OF the amount of grain to
be distilled at each distilling, from
oct. 1 to June /, so that he could
arrange to have in the barns all of
the cattle required to consume the
Stop. II at any time the distilleries
smut down, or could not supply the
amount of slop stated, the trust
was to provide sufficient amount
OF meal and water for the feeding
of cattle.
After setting forth the contract and
the distilleries named in the contract
which were the National, Great West
ern, Manhattan, Woolner and Monarch
at Peoria; the Wabash at Terre Haute
the Consolidated at Cincinnati, the
Missouri at st. Louis, the Riverside and
calumet at Chicago, the ST. Paul at st.
Paul, and the Willow Springs at
Omaha, the receiver points out that the
contract was authorized in the city Of
chicago at special meeting of di-
rectors held at Chicago on Feb. 2, 1892,
and that the legal place of meeting was
at Peoria; that Greenhut was the pres
1dent of the board at that time, and
Morris was a director.
The receiver points out the peculiar
methods used in making the contracts.
The preferred stock was fixed in Feb
ruary to take effect the following Octo-
Der, and continues at the same price
of six cents a buShel for a period of
three years without regard to the price
paid for grain. Furthermore the price
fixed in the contract was the same at
all of the distilleries though the price
of the slop varied at the different places
according to the local conditions. At
some points it was worth z, at others
9 and at others 10 cents a bushel BY
the terms of the contract the trust was
compelled to keep its distilleries in OPP
Grafton in order to furnish the requi-
site amount of slop without regard to
the condition of the market and the de-
mand for the making of spirits.
The distilleries had not been started
up last year until December, and Nor
ris now has a suit pending for $3.50, 600
damages for failure on the part of the
trust to open it's distilleries in October
and furnish slop to him. The receiver
says he has grounds of recovery
against Greenhut and Morris for the
amount unpaid or received by them on
account of the feeding.