The Weiser signal. [volume] (Weiser, Idaho) 1890-1904, 1895-02-07
CREENHUT'S VERSION OF 1T.
The Whisky Trust President and TIL
Recciycrship Trouble.

Peoria, Ills, Feb. 3.-President Green
evening and asked for a statement of
his version of the receivership trouble.
He said the best statement he could
make was the sworn affidavit of the
board of directors, adopted at the recent
meeting in Chicago. This statement.
he said, cleared away the charges of
mismanagement with which he has
been confronted ever since the applica-
ton for receivers was made. Up to
this time he had not seen fit to make
statement as to the future, and he could
say nothing. He was asked as to what
steps he would take If ousted but declin-
ed to say. Samuel Woolner denied this
evening that he was in any way respon-
sible for securing Levy Mayer as coun-
sci, or forming an opposition. The
sworn statement of the board of direc-
tors is addressed to Judge Grosscup
and signed by all the members of the
board except Greenhut himself. 1t
states at the outset that Hobart
Green. Henessy and Greenhut have
been directors since the organization of
the company in 1890. and Beggs and
Freiburg since 1883. The directors had
chosen Greenhut president at each sue
ceeding meeting. and he had been unan-
| imously chosen president at each stock
holders meeting. All the business man
| agement had been in accordance with
the directions of the board. and it has at
all times fixed the prices and given di-
rections to the president as to the man
agement of the business. We further
state that all charges of willful mis-
management or wasting assets, are ut
terly groundless, false and untrue. All
| of our acts have been according to our
best judgment and the interest of the
| company and its stockholders, and If
| there has been any error II was an error
of judgment on the part of the board
of directors. The acts complained of,
and especially the issuance of bonds,
were done, as we understand the char
ges, prior to the annual meeting of 1894"
The sale of bonds is gone into at
length and the necessity of their is
suance. THE board of directors found
itself confronted by what is considered
a temporary stringency and regarded
the sale of bonds as the best way out
of the trouble. The annual meeting Of
April, 1898, when 81 per cent. of the
stock was represented, ratified the bond
issue and Endorsed all that had been
done by the president and directors
One million dollars in bonds were sold
for 100000, every dollar of which went
into the treasury. No commission was
allowed or paid, and the money thus Sc
| cured allowed us to tide over existing
difficulties
The difficulties of the quo warrantc
proceedings are gone into, and the fail
ure to raise money to remove goods
from bond after the increase in tax
when, up to the last moment, the board
had been promised $6,000,000 if neces
sary. The company is feeding 1900
head of cattle on contract and the sale
of its product is so limited that It finds
itself without sufficient capital and does
not consider a further suie of bonds ex
pedient.
THE present condition of the compa.
ny's finances is owing to circumstances
wholly unforeseen and beyond the con
troll of the directors. In all things in the
management of the business we exer
cised our best judgment. At the annua
meeting in April, 1894, of the stock
holders. at which 81 per cent. of the
capital stock was present, the president
made full report of all that had beer
done concerning the issue and sale OF
bonds, including the price at which they
had been sold and the application of the
proceeds and a minute and careful
statement of the financial statement OF
the company. All of the acts of the
president and directors were unani
mously ratified, approved and confirm
ed for the stock so represented at sale
meeting. They must be ratified by
those who purchased their stock sine,
then, and with full knowledge of al
these matters. Since the last annua
meeting in April, 1894, the increase o
the tax and unsuccessful efforts to fore
stall the same, and continued genera
depression in business, and forced aban
donment of the rebate system, and ac
tive competition, are things whicl
mainly contributed to place the compa
ny in its present embarrassing financia
condition"