St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-02-05
CUT OFF FROM WHISKY
Greenhut Cannot Act as
Receiver for the
Trust.
JUDGE GROSSCUP'S DECISION
Virtually an Opinion That a
Plot Existed to Wreck
the Combine.
JUDGE GROSSCUP'S DECISION
M'NULTA RECEIVER-IN-C CHIEF
Complete Victory for the An
tis--Reorganization Now
Will Follow.

CHICAGO, Feb. 4.-Judge Grosscup
today ousted j. B. Greenhut from the
rrceivership of the whisky trust.
He allowed Receiver Lawrence to
remain in office as repre-
sentative of the directors, and APP
pointed Gen. John McNulta as re-
ceiverin-chief. John j. Mitchell. was
appointed another receiver to repre-
sent the New York stockholders. The
decision accompanying the order was
long, and criticised Greenhuts actions.
Judge Grosscups decision was
lengthy and somewhat sensational.
After all exhaustive review of the case,
he declared that the court had been
imposed upon in the selection OF Iresl-
dent Greenhut as one of the recslvers.
A receivers duty. he said, should be
the enhancing OF the value or the prop
erty which he is to control. Admls-
sions in court had shown that Mi.
Greenhut was heavily short on the
stock. and that accordingly his person.
al interest would dictate the deprecla-
ton of the stock, rather than the en-
HANGING of its value. BY admissions
of counsel, the court said, it was SHOWN
that the property interest III the
original application for receiver 1of
the company was very small. LII was
also shown that neither the president
nor directors had any substantial inter
est in the company. The eVldehce
showed, Judge Grosscup said, that a
vast norton of the stock was held by
New York stock brokers fsr specu-
lative purpose. He could not exactly
approye of calling in United States
court as referee. the judge declared, put
as it was evident referee was needed
and as he had been appealed TO lie "oulu
act. He again denounced the selectlon
of President Greenhut as receiver as al
imD0sition on the court, and closed WIN
the curt statement that "for these anu
other sufficient reasons Mr.. Greenhut
i, removed from the recelverSflp.
Roth sides in the trust controversy
were fully represented in court, ana the
court room was crowded Win specta-
tors. The protective committee Iac'lon
expressed themselves as well pleaSeu
with Judge Grosscup's selection OF re-
ceivers. The representatives OF the
Greenhut faction refused TO say WHAT
further action they would take.
After the receivership decision was
announced, Attorney Mack, represent
ing the officers of the trust, reIle"Gu illo
attempt to have the names OF rem
sheiker and WormSer, or New ofk,
removed from the list OF compialuahts
in the original recelVershlp proceso.
ings. He says the names Welo aeuSu
on the day after the appointment Vi rhe
receivers. and without authority. Inc
motion was contested, and Judge Gross
cup reserved his decision untll toillot-
row. 30
In an interview Levy Mayer, one or
the attorneys for the stockholders com,
mittee. said: The stockholders Will
now proceed to the immediate reorgani-
cation of the company, ana "hen that Is
perfected they will, of course, be Ill a
position to take the property out OF Inc !.
hands of the receivers. Meanwhlie IL
will be necessary to have thorough III
yestigation of the books OF the company
and to ascertain Just how the insiders,
particularly Messrs. Morris and Green
nut. have conducted its affairs"
Receivers McNulta, Lawrence and
Mitchell. met Judge GIosscup by APP
pointment, at the noon Adjournment OF
court, and took luncheon Win nun DIT
the Union League club. where 1or TWO
bours the affairs of the trust were In
formally discussed and all agreement
as to the conduct of affairs made.
"rhe conference was, of course, pure,
ly informal" said Judge GrosScup. and
i could not relate all that took place or
was agreed upon. can say, however.
that the trust will be run on BUSINESS iss
nrinciples and in a business way. Its
affairs will be taken up by the receivers
where they find them, and conducted as
if nothing had happened. Ih ta y Is ial i>
Ing due tomorrow the 100000 of bonds
issued last summer. They. in fact, fail
due on the 9Th of each month. Ihey
will be paid as they fall due if the 2I re-
ceivers can see their way clear. The
com pany not being insolyent, the con-
duct of the business is not SO difficult as !;
ordinarily falls to the lot of receivers"