St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-04-13
END OF THE TRUST
Property of the Whisky Conn
bine to Go to the Highest
Bidder.
COURT ISSUES THE ORDER.
Result Of the designations OF
Members Of the Board of
Directors.
TRUSTS CHARTER is VOID
And No Other Course Is Left
but to Wind Up It's
Affairs.
TRUSTS CHARTER is VOID


ties of the whisky trust will be sold to
the highest bidder. Judge Showalter.
or the United States circuit court. in
an order issued today admitted that
the trust no longer hada legal existence,
Its board of directors were charged
with having deserted it's trusteeship,
that 1t had no quorum and any
election of new members of the board
would not enable them to recover the
property from the receiver. The
court directed that the receiver
SELL THE PROPERTY
and that the proceeds 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 upon which the order was
based was brought before Judge
Showalter at o'clock in his chambers.
1t was an application for a receiver by
Stephen d. Boyer, of New York, the
owner of 500 shares of stock; d. C.
Bennett, of Albany, N. Y, the owner
of 200 shares; and Hugo Blumenthal, of
New York, the owner of 500 shares
of the stock of the Distilling and
Cattle Feeding company. The three
petitioners are represented by their
counsel to be men outside of the re-
organization committee.
II cannot tell you what influence there
is behind the filing of the BILL" said
Attorney Graham, who represented
the petitioners. Whether melted by
Mr.. Greenhut's people or by the others,
the bill speaks for itself. Receiver
MeNulta was aware of the purpose of
the bringing of 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, nothing else could be done.
The
CHARTER IS VOID. f
The property is in the hands of the
United States, and there could be but
one course pursued, and that the one
set out in the BILL The divergence in
this bill from the original bill begins
with a recital that the last meeting of
the board of directors of the trust was
held on Feb. 1. Since then the direct
ors 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 re-
ceiver. The resignation of Nelson Nor
ris left the board consisting of Messrs.
Greenhut, Hobart, Greene, Freiberg,
Hennessey and Beggs. On April 8, the
compliments aver, Hobart, Greene and
Freiberg resigned. There are but three
directors left, and the bill alleges that
they do not constitute quorum, that
they cannot fill the vacancies. The
bill then recites that the attorney gen.
eral of the state, by quo warranto pro-
ceedings, 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 a5.
The prayer of the bill, to which the
order granted by Judge Showalter adj
heres, is as follows: THAT by an or
der entered herein, the said John. M.
McNulta may be appointed receiver of
all property and effects of said de-
fendant company and invested with
full title thereto, as receiver; and that
all of the officers, managers, superin-
tendents, agents and employees of said
defendant shall be required forthwith
to deliver up to- such receiver the pos
session of each and every part of the
said property, wherever situated, and
also all books and accounts, vouchers
and papers in any way relating to its
business or the operation thereof, and
for an injunction to restrain each and
every officer, directors, superintend-
ents, managers, agents and employees
of said defendant from in any way in
4ny- .if,cr fIo i~,1 4
troll of said receiver over said ,prop-
erty, and that at such time as may be
found just and proper the property of.
said defendant may be
ORDERED TO BE SOLD,
and the proceeds distributed among.
those entitled thereto" The attorneys
were with the judge for an hours
There was no opposition to the bill,''
said Mr.. Gresham, after the attorneys.
left the judges chambers. Judge Sho-i
walter was not acquainted with the
details of the issue, as it stands be-
fore the courts, and the time was
taken UP in acquainting him with such
Were the designations of Directorsl
Hobart, Greene and Freiberg made 1n-
order to furnish the ground of the.
charge in the bill, that the board had,
no longer a legal eXistence?'
'I do not know. the motives which4
Influenced them to resign. The bill,
says these men abandoned their trus-.
teeship over two months ago. really
cannot say anything about the bill
except what appears in it. The old
trust has no legal existence, and the
receiver cannot turn it back to any,
one presuming to stand for it."