New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-26
WHISKEY TRUST SECRETS.
TIL ROOKs SHOW \ DISCREPANCY OF
Sl924l20
EfrOuTS MADE TO HIDE THE TRANSACTIONS 81
ALTERING THE ENTRIEs-MoRE IM'"'-

LTtDITS MADE TO HlDE THE '''T->'''' -
ALTERING THE ESrRlEs-MoRE IM"';-
TAN DISCOVERIES EXPECriD
chicago. March 25.-A parnai rePor' " , ,ho
perts appointed by the courts ~ eNa'.''' -,
ertus 80 tha vbiskev Trust made puhic -
day and shows a discrepancy oil s'@7'i-V anu 90"
oa,.. htdo :, nv erasures in the books of the
r This IL only one Of many items winch
tho receiver General McNulta. says ne WI" en-
deavor 10 collect by Jaw from the ohI '1ice's am
directors Of the Dstilling and Cate Feeding COM
-. The experts report covers period ending
,,,, ., 1892 and throws light subsequent
rs,c,ions II is in sos and 1894 that the greatest
irregularities are expected to be discovered. The
report as given out. il as follows:
balance sheet. March 81. lS9l-Orginal Construc-
balance sheet, March 81 lS92OriGinal CONSTRUCTION
s sSs2@s at & SHARE sr'si5 O derence on 1881
shares Of stock stated on the books 70 have been
s02 he T9@ d items oHF on ~ tia ssg bsancd
namely. original construction account and treasury
stock agree With the companys books as they wrrs
stock At SIS in june 1891. the said two items were
namely. first the figures S. sS 400 opposiis treasury
ToS wr,,ten o4n5e G sacon the ngres SEQ @ 6O
OPPOSITE original cS3strGcion acCopn' INV, were So
the new figures being the sum Of both items
There is a law I'm Illinois which prohibits the
directors OF a corporation from assigning TO them-
selves stock OF their company at less than par
value IL would appear that the directors VI '''
Trust were not Conversant with this law at the
time they assigned themselves the treasury stock
So a share. According to Mr. Rice. Of New
York. OF the Reorganization Committee, this
the He explains the "doctoring or the
books by saying that the directors subsequently
learned their error which laid them liable for the
difference between the price paid Csi5l and the
par value OF 800. and In order to avoid such liza
bility the books altered to show the stock at
its par value required It is also stated that
while the stoCkbook made to show the value
Of S.49s4 400. the cashbooks were untouched and
show only the actual cash paid. being x574.2S
Mr. Rice. in speaking OF the report. said: You
will understand that this report covers the doings
OF the old managers only early in 1892. In later
reports look for more glarng errors This
is one OF the items upon which suit against
Greenhut and Morris is to be based but II IS only
OF many
Friends OF the old directory say that in cour,
the difference OF IS a share be collected. be
81 all II worth the stock market
the time il taken.
The experts are still at work in Peoria and II will
be some time before final report is rendered.
An answer was made to-day in the United states
/ Circuit Court by Secretary Hennessey OF the Whis
| key Trust to the bill of the Takamine Ferment
Company. which had contract with the Trus
for the of the Takamine process OF distilla-
Distilery should be equipped for the operation OF
the patent process was being carried when tho
receivers were appointed. and operations stopped
| The Takamne company demands fulnlmeni OF
abrogation OF contract. which is admitted by SeCre
tary Hennessey. The receiver has not filed an an.