New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-03
THE WHISKEY TRUST CASE
MOTION FOR GUSHING THE RECEIVERS
ARGUED BEFORE JUDGE GRosscuP.
,rcrs,oN RESERVED UNTIL To-MoRRo"-RE-
cEIvER GREENHUTs STOCK TRANsACii'
ATTORNEYS BANDY1NG PERSONAL
CHARGES - THE DIRECTORS DE-
>-rvr SUGGESTED

FENCE-NEw MEN SUGGESTED
FOR RECEIVERS
Chicago. Feb. Judge Grosscup to-day took un-
der adytsement the question OF oustng joseph D.
f-rs.nbvt and Edward NJ. Lawrence from the re-
ownership of the Whiskey Trust. ana announced
that he would render decision on Mohoay at ~
O'clock He asked counsel for the majority ''oo"-
holders to name two persons who woud De accep'a
he 10 their clients as receivers In case ne shouu
"o,c,uds 20 remove President Greenhut and Mr.
Iavr.nce but he was careful to state that mis- re-
ouest did not carry with II the assumption 'ha' nc
would grant the application. All the ure0'oi' ""'
attaches OF the Trust were In court IN ooeoie"ee
euopoenas, but the Court took no eVioe"oe eN.rp'
hat of President Greenhut and Mr.. Lawrence. Inc
r,ll of sensational surprises. chief OF wnicn
-,a. tho admission Of Mr.. Greenhut that ne had
bought large blocks of Whiskey Trust STOCK Oh inc
Wednesday following the appointment OF 'he re-
ceivers and that he was heavily snort OF 'he mar
ket Mr. Mayors arraignment OF MT rree"hu' was
q severe one Nathan Blur, Of New-fork' also Sc
,,are,v criticised Mr. Greenhut. Mr.. Mayer said MI
Greenhut was interested in a number OF companies
which furnished supplies 10 the trust, ana was
engaged in making out orders 10 sell MS own SUN
a great part Of his time. Moreover II was charged
he drew four big salaries from the Trust and piled
I'D an expense account which was princeiy in It's
Through A. II. Veeder. their attorney number
stockholders assert that Mr.. Greenhut himself holds
Commentator of himself. Mr. veeder fatty refused
10 give the names OF his clients. but did not deny
that Mr. Greenhut was the most important one
Mr. Creenbut having been sworn the Judge said
that he wished to ask him few questions on his
own account. He continued:
Q.-You know what buying and selling stocks on
Odd you buy or sell any stocks last Monday?
Ayes / bought 5000 or 400 shares OF Whskey
Trust stock
IT.. $3.50 ouae,ions uere asked Of Receiver Law
renee who said he had bought stock. and was
not In any way interested in any deal in Whiskey
Trust stock.
Mr. Mayer then stated to the Court that the
motion he would make would be for the oustlng
OF Receivers Greenhut and Lawrence. Just now
he would not make a motion for the vacation OF
the receivership. In explaining his position. Mr..
Mayer said:
A stockholders Committee composed OF John
wood was recently formed in New-York for the
purpose OF making change OF mam , IN IN
be committee meeting in Peoria for the purpose
Of considering these matter MI GfeenTS1 see
Of this week would be time enough 10 noiu TN, .ne
on s the STOCK Of Whisky
Trust was being sold down a point or two on the
n"ssissten This % and
that receiver had been appointed THIS vas vas
been appointed ' for the III Trust Telephone com
muniSation was ct once opened with CINCINNATI by
informed them that ne knew nothing whatever OF
the appointment Of the receivers.
MI Mayer then told the Court how the order
entered on Wednesday. permitting the committee
OF experts to examine the affairs OF the Whiskey
Trust. was. as he alleged, ignored He continued:
When the Investigators reached Peoria they
found the vaults locked, and considerable wiring
ton Then IL found that Mr. Maxee had the
key OF the inner vault In his pocket and was out
OF town. When we finally got him, II was so late
that we had little time to make investigation.
We found out that about ninety-eg payments
had been made to Runnells & BURY. the attorneys
who asked Your Honor 10 institute the receiver
ship although altogether different firm acts as
attorneys for the Whiskey Trust, was regularly
Instituted such and IL paid monthly. Now. make
charges l merely mention this TO show the
relation between lawyer and client In this case.
As TO the state OF the Whiskey Trust finances, We
found that outside OF the rebate vouchers. 500
1900 will cover the entire Indebtedness: We fur
Their found that Nelson Morris an ex-director OF
the Trust is largely interested with Mr.. Greenhut
In extensive contracts for leeding ca!ue. As 10
Charles j. Heinsheimer and . l. Wormser. neither
Of them had any right TO sign the petition. nor 10
have II signed for them
Mr.. Mayer then sprang the sensation OF the day
when he stated that Mr.. Greenhut old NOT own
share OF the Whiskey Trust stock until after the
receivers had been appointed He added that no
believed he was justified in saying that all the
directors together do not own 1000 shares OF STOCK
Mr.. Greenhut interrupted at this point:
wish to make an explanation ! wish TO cor
rect my statement that j bought This STOCK OH
Monday. ! bought II Wednesday.
After the stock had been pulled DOWN. IN
9ured Mr.. Mayer. dryly. Mr. Greenhut did not an
wes Judge Grosscup said:
o11 would like to ask YOU Mr.. Greenhut. II Son