The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-13
Judge Showalter Directs Receiver Nc.
tribute the Proceeds.
ITS AFFAIRS IN A TANGLE
THE DIsTILLING COMPANY HAS NO
LONGER A LEGAL EXISTENCE.
Action of the Court Due to the Resig-
nation of Directors-NO Opposition
to the Order of Sale.

CHICAGO, April 12-The properties of the
Whisky Trust will be sold to the highest
bidder Judge Showalter, of the United
States Circuit Court in an order issued to-
day, admitted that the trust no longer had
a legal existence. Its board of directors
were charged with having deserted it's trns-
teeship; that it had no quorum and any
election of new members of the board would
not enable them to reacquire the property
from the receiver. The court directed that
the receiver sell the property land the pro-
ceeds be distributed among those entitled
thereto" The attorneys for the Greenhut
faction and for the stockholders consented
to the action of the court.
The bill on which the order based
was brought before Judge Shswalter at 3
o'clock in his chambers. 1t was an applica-
tion for receiver by Stephen D. Booher. of
New York, ownet of five hundred shares of
stock; D. C. Bennett, OF Albany, y. ", the
owner of two hundred shares, and Hugo
BlumenthaL of New York, owner of five
hundred shares of stock of the Distilling and
Cattle-feeding Company. The three petition
ers are represented by their counsel to be
men outside of the reorganization commit
tee.
"I cannot tell you what influence there
is behind the filing of the BILL said attor-
ney Gresham, who represented the petition
ers, whether melted by Mr. Greenhut's peo-
pie or by the others. The bill speaks for
itself. Receiver McNulta was aware of the
purpose of bringing the suit, and he ap-
proves of the course taken. The old trust
management, by it's attorneys, consented.
as did the stockholders. The fact is, moth
ing else could be DONE The charter of the
company is void. the property is in the
hands of the United States and there could
be but one course to be pursued, and that
the one set out in the BILL
The divergence in this bill from the origI-
nal bill begins with recital that the last
meeting of the board of directors of the
trust was held Feb 1. Since then the direc-
tors have abandoned their trust and paid
no attention to it's affairs, it claims, the
sole management being in the hands of
John McNulta, the receiver The resigna-
tionsof Nelson Morris left the board consist
ing of Messrs. Greenhut, Hobart, Greene,
Freiberg, Hennessy and Besgs. On April 10.
the complainants aver. Hobart, Greene and
Freiberg resigned. There are but three di-
rectors left and the bill alleges that they
do not constitute a quorum. that they can
not fill the vacancies. The bill then recites
that the Encouragement of the State, by
quo warranto proceedings, attacked the
charter of the trust and that the lower
court held that it was forfeited, and the
issue is now pending before the Supreme
Court of the State. The prayer of the BILL
to which the order granted by Judge Show
alter adheres, is as follows
THAT by an order entered herein, the
said John McNulta may be appointed re-
cever of all the property and effects OF said
defendant company and invested with full
officers managers, superintendents. agents
and employees of said defendant company
shall be required forthwith to deliver up to
such receiver the possession OF each and
every part of the said property wherever
situated and also all books ana accounts,
vouchers and papers in any way relating to
its business or the operation thereon, and
for an Injunction to restrain each ana every
agents and employees OF said defendant from
IN any way interfering with the posse4ion
and control of said receiver over SAID Prop
erty and that at such time hS may be
found Just and proper, the property OF said
defendant may be ordered to De sold ana tne
proceeds distributed among those entitled
thereto"
over an hour. There was no opposition to
the bill" said Mr.. Gresham, after the at
torneys left the judges chamber Judge
Showalter was not acquainted with the de-
tails of the issue as it stands before the
court and the time was taken up IN ac-
ouainting him with such information"
Were the designations of Directors Ho-
bart. Greene and Freiberg made in order
to furnish the ground for the charge in the
bill that the board no longer had legal
existence?" was asked
II do not know the motives that innu-
men abandoned their trusteeship over two
months ago I really cannot say anything
ahout the bill except what appears in it,
The old trust has no legal existence, and
the receiver cannot turn IT PACK TO any
praSlfming to StanQ 1Of II.