Evening journal., 1895-01-30
WHISKY TRUST SLUMPS
The Chicago Faction Has Re-
ceivers Appointed. -,
- tsrt Sst-{
WALL STREET IS EXoITED TODAY.
rhe Reason Given Tor the Action IL That
Large Amounts of Rebate WIN Soon Fall
Dne-rresident Greenhut Approved of
the Proceedings.


CHICAGO. Jan 80 - Receivers were
named for the Distilling and Cattle Feed
ing company by Judge Grossoup Of the
United States circuit court here. The APP
licatlon was made late on Monday after
noon by owners representing 200 shares
Of the stock Of the company and 1t was
ooncurred in by Mr.. Greenhut, tho presi-
dent Of the company.
Mr. Greenhut under whose manages
ment the property has been brought to its
present predioament, was appointed one Of
the receivers, his associate being Mr. K.
4. Lawrence, a director OF the First Ma
tional bank Of Chicago and close asso-
oato of Nelson Morris until recently one
OF the magnates Of tho trust
Tho reason assigned for wanting roceIv-
ers was that the company was being press
ed 10 pay its debts and had no funds to
meet tho demands. II was represented
among other things that on Feb / at least
S2, 600, 600 In rebates would fall due, and
unless they were promptly paid the va
rious distilleries would be attached and
their earning capacity greatly reduced.
The rebates mentioned are due to whole
sale dealers In whisky who enter into con-
tracts that they will buy no liquor except
that made by tho trust The whisky is
charged TO them at a certain rate, and IL
at the end of six months 10 is found the
wholesalers have handled nothing but
trust whisky they are allowed a rebate of
from to oents q gallon. These rebates
arc due Feb. !, and according to the bill
presented TO Judge Grossoup the company
has no money TO pay them. The amount
of rebates due was represented as some
thing like 81, 900, 600. Othor forms Of in
dobtodness were also mentioned In the bill
John S. Runnells attorney for tho stock
holders, said;
A Review OF the Petition.
"The bill is voluminous ono and re-
cites history Of the trusts financial and
business operations since 1893.
1t reviows the adoption Of the rebate
system, whereby the trust aimed TO mo-
nopolize the trade by Offering rebate OF
from cents upward per gallon on spirits
1 10 tho distributors Of the trust and deal
ers, the rebate being given whom the hold
ers Of the certificates filled up blank TO
the effect that they had not used the prod
4 uet Of another country 1t also recites
| that the purchase OF distilleries In order to
centrallze the trade absorbed oil Of the
means Of the trust and the erection and
4 operation Of outside distilleries kept tho
4 Hfltt Oh Aih lfuhutt tbWh 10 a polut Lu-
low the profit, and this continuing dragged
the trust down to the situation which con
frontod it short time ago, when circulars
were sent to the stockholders asking for
an agreement to a reorganization which
virtually meant an assessment on the
\ stock.
LAS It we'll known, this circular did
not meet with the ready acceptance Of the
4 atoolx xholdarg On Fab n large amount
OF rebate certificates fall due The treas
ury Of the trust practically depleted there
was no way in sight by which payments
could be met The result would be, IN
tho default Of such payments, attachments
Of the trusts property and the dissipation
OF all its assets without an adequate return.
IL was after reoiting these facts and
pointing out tho ultimate effect of the
failure Of paying rebates that the stock.
holders in the petition asked the court tc
appoint receiver The attorney for the
trust admitted these conditions to the
court and agreed to the appointment