The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-13
WHISKY TRUST IN FOR A WAR.
THE PRICES OF OUTSIDE DIsTII.-
LERIEs TO BE ECLIPSED.

The REORGANIZATION Committee
Ciinches Gen. McNuIta's Hold ON
the Receivership with Instrue-
tiOns to Bring About "A Judgment
Sale OF the PrOperty-McNulta'S
Hold Very PrecariOus before the
bringing of the New Proceedings.
Chicago. April l2-Gen. McNulta this
morning declared open war against four
d!stillerles which have announced their
intention Of retiring from the trust. lie
says he Will meet the low prices they are
making wherever found, no matter what
they are. This, he believes. to be the only
way they can be brought to terms
The first decided step, showing the plans
OF the reorganization committee of the
whisky trust was taken this afternoon
when. on its behalf. Gen. McNuita was
appointed receiver with extended powers
and with instructions to bring about 2
judgment sale Of the property of the Dis
tilling and Cattle Feeding Company.
1t is SAID that the sale will be made at
an early day; that the property will be
bought in by the reorganization committee
and that new stock will be issued by them
and dealt out in pro rata shares.
The bill lled to-day was signed by Otto
Gresham, son of the Secretary Of State.
as special counsel. and had on its face as
plaintiffs the names of Stephen ID. Bayer
and Hugo Blumenthal Of New York city,
and d. c. Bennett of Albany. n. Y. It re-
cites the history of the DistlHng and Cat
tie Feeding Company, which. IL claims.
was doing a business OF $50 900. 900 annually
and had paid $6,lS8, ,S6S in dividends up TO
teD. ! last since which time no dividends
have been declared. IL tells of the actions
OF eN-Pre9ident Greenhut ana the directors
and states as the ground for the appoint
ment OF receiver that the company Is al
present without a quorum of directors and
cannot transact business; and that II new
directors were elected they would be pow
erless TO act without possession of the
property, which Is already held by re-
ceiver. The bill further recites that the
company has large leases requiring large
expenditures On rentals, and also unper-
formed contracts which the receiver ~
powerless to dispose OF, and that as the
business of the company cannot be trans
acted. the only remedy is a sale and distri-
button of the property
The main object OF the bill filed was
to bring about a sale of the property
and the next object was to make Gen.
McNulta secure in his receivership. II
now transpires that at any time up to
the present the receiver could have
been Wrested from his position. in the
Olmstead bill there was collgsion by
stock having been turned over to Olm-
stead for the express purpose of signing
a bill for receiver, and where jurisdic-
tion is given a court by collusion the re-
ceivership win not stand. In the bill
where Gen. McNulta was appointed re-
ceiyer on application Of creditor In
S25.000 claim, the payment OF the claim
would have been all that was necessary
TO end the receivership there. Hence II
appears that the receivershp was very
insecure until clinched by the order Of
court this afternoon. The reorganization
committee considers their move of to-day
a very important one, and say 1t opens
the way for a complete reorganization
without interference, as the order of the
court enjoins the old directors from inter-
ferng In any way.