Frederick citizen., 1895-02-01
WHISKEY TRUST Fails
Receivers Appointed for
the Big Corporation.
Stockholders Representing Four or
Five Million Dollars Mako the
Application Before Judge Gross-
cup In Chicago - Nominal FaluA-
tioH OF Property $35. 900, 900.

Chicago. Jan. 3o.-A grand coup has
been sprung by President Greenhut
and his friends and to-day the big
organization known as the Distlliers
and Cattle Feeding company is In the
hands Of two receivers appointed by
Peter b. Grosscup. Judge Of the United
States district court.
Yesterday afternoon the receivers,
z. F. Lawrence, q director Of the First
National bank. of Chicago, and Joseph
3. Greenhut, of Peoria, filed their
bonds for $500, 900 each before the court
and were duly qualified to act. On
Mr.. Greenhut's bond are Messrs. Lynch
and Rothschild of the National Bank
Of the Republic of Chicago.
So secretly was the bill Alea and
the argument made that the exact
time and place Is not known. but 1t
is supposed to have been heard In the
Judges private chambers. Messrs. John
8. Runnels and William BURY repre-
sented large block of the whisksy
trust controlled by the Greenhut fol-
lowing. Among the foremost names
which appear in the bill are those Of
Wormser and Olmstead. John Ste
Vens. Of Peoria, the regular attorney
OF the whiskey trust. was present at
the time Of the argument and Levi
Mayer was on hand for the opposition.
The argument was brief and resulted
In the filing Of the bill and appoint
ment of two receivers. The entire ac-
ton was kept secret until the filing Of
the bonds. so that there could be no
possible slip and even in the filing the
matter was postponed until after the
regular hearing OF the Debs trial had
been concluded.
Coincident with the days action
comes the filing OF the bills In the va
rious states in which the company has
transacted business. John Runnels,
who engineered the entire proceeding,
declines to locate the place where the
bill was argued. but said
This action was not taken by the
New York stockholders who have been
threatening the organization for some
time past and whose committee issued
the circular a short time ago, but by
the friends Of the present mana ge-
ment."
He declined to forecast the action of
the receivers and the probable result,
but said they would administer the
property under the jurisdiction of the
court and at the proper time file in
ventories. and If the court so decides,
in the future. sell the property and
pay the debts of the organization.
The property represents a nominal
valuation of s35.O"O.O00 with a present
actual valuation of probably four or
five million dollars.
New York, Jan. 30-Perhaps an ex-
planation of the hurried appointment
OF receivers for the whiskey trust may
be found in the aggressiveness dis
played by the stockholders committee
OF which Richard 3. Harthorne is
chairman. 1t was ascertained last
Saturday that the committee holds
proxies for more than a majority o.
the capital stock of the company. and
1t was then decided to arrange. if pos
sible, conference with the board of
directors. With this in view a tele-
gram was sent to President Greenhut
at Chicago. informing him of the in
tention Of the chairman and counsel
OF the committee to visit Peoria, the
headquarters Of the trust, without 6e-
lay. and requesting an interview with
the directors.
Mr.. Greenhut replied, seeking delay,
explaining that he could not commun-
icate with the members of the board
before Monday and that he would ad-
wise later On Monday the following
telegram was received
Chicago, Jan. %, 1895-Rica,ard B.
Hartshorne. West 51st, street, New
York-Our board of directors will meet
your committee Thursday morning
j. r. Greenhut. president"
Thereupon Mr.. Hartshorne. accom-
panied by Nathan Blur. of counsel
for the committee. left New York for
Peoria at once. Before they reached
their destination the application for
the recelyership had been made.