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 ValuA-
tioA OF Property $35. .OOO,O 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,
=. f. Lawrence, a director Of the First
National bank. of Chicago, and Joseph
3. Greenhut, of Peoria. filed their
bonds for 100000 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 It
| is supposed to have been heard In the
| Judges private chambers. Msssrs. 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 &C
tion 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 Sc
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 IL 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, go, 900 with a present
actual valuation of probably four or
five million dollars.
New York, Jan. SO.-Perhaps an ex-
| vNIo %
Of receivers for the whskey trust may
be found in the agsressiveness dis
played by the stockholders committee
OF which Richard B. 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. a conference with the board oi
directors. With this in view tele
gram was sent to President GreenHut
at Chicago. informing him of the in
tention OF the chairman and counse
of the committee to visit Peoria, tht
headquarters Of the trust, without 6e
lay. and requesting an interview will
the directors.
Mr.. Greenhut replied. seeking delay
explaining that he could not commun
icate with the members Of the boar
before Monday and that he would ad
wise later On Monday the following
telegram was received:
Chicago, Jan. %, 1S95-Richard B
Hartshorne. West 51st, street, New
York-Our board of directors will NEE
your committee Thursday morning
]. r. Greenhut, president"
Thereupon Mr.. Hartshorne. accom-
panied by Nathan Blur. Of counse
for the committee. left New York fol
Peoria at once. Before they reached
their destination the applica tion fol
the recelyership had been made.