New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-04-02
WHISKEY TRUST CONTRACTS
GREENHUT AND MORRIS PROFITABLE
=
CONTRACTS
LET TO THEMSELVE.


Chicago April John J. Herrick counsel for the
Whskey Trust receivers. to-day filed in the United
States Court petition asking for the annulment of
the cattle-feedng contract made with Nelson Nor
ris by the company. As a supplementary proceed
ing TO this. Wednesday there will be filed
suit nearly slCCO.COO from Mr.. Morris and
Joseph =. Greenhut this being the sum, 1t is al
legged in the bill the stockholders were muicted OF
by irregularities in the sop contract mentioned. 1t
is stated that this suit will only be the precursor OF
others large sums said 10 be due the
holders of stock because Of the difference in con-
tracts let by the Grcenhut party To- themselves or
their friends. and what might have been received
had the contracts been let in a regular way.
The most sensational allegation made in the pc
tition which Judge Grosscup granted the receiver
leave TO file to-day is that President Greenhut was
a sharer in the profits made by the Nelson Morris
contract to the extent of one-seventh. and that he
called the meeting at which the contract was let
and favored it in every possible way II Is further
charged that this contract losing one for the
company and was made without precedent mas
much as il vas for longer than year and made
10 distinction as 10 terms whether corn was high
or low. The charge is made that the 1900 head OF
cattle that were fed slops We're the property Of
Morris and Grecnhut. Morris claimed the right to
have these cattle fed until June of each year. and
10 October if the dst,ller.es continued to operate
The petitioner does think il to the interest
of the company TO continue feed the cattle at
the rate named in the contract. cents bushel of
grain mashed. the basis of furnishing to each
animal the slop resulting from a bushcl of grain
He declares the compensation is not reasonable
and that not less than cents a bushel would be a
fair price. and head at some of the better
dstilleres To continue all the distilcries until
June as the contract provides the petitioner al
leges. would afford a great loss and hardship 20
the company as it would be advisable TO shut
many of them down sooner. Without running all
the distlleries it would be impossible to fulfil the
contract.
Ii IS further set forth that Morris has brought
suit to recover alleged damages of $4,000 for
breach OF contract 10y the company. which suit IS
now pending ana undetermined. AS Greenhut is ac
cused of being Morrfss partner in the contract the
intimaton is plain tina; he was practically a party
10 a suit against his company. whose interests
as president he supposed 10 protect. The re-
ceiver it is promised will claim that the contract
was not valid and not binding and that he has
grounds of recovery against tireennut ana Nor
rs for sums unpaid received by them on account
of these cattle-ieeling contracts. The petition then
relates that a; the time the contract was granted
Morris director Of the company and drew
SO a day salary; that. while the contract was made
in the name OF Nelson Morris, II was in fact made
in behalf of himself and Greenhui. in accordance
with a secret arrangement between them not shown
in the records Of the company or known to the
the contracts and the profits accruing therefrom
TO the extent of one-seventh 1t Is said that at this
time Greenhut drew a salary OF Sl0vo year as
president Of the company and $1,000 as MANAGE o Of
the GTeat Me'eR hS a a go donrSc Vas
made special meeting of the directors called
&
regular meeting place. The meeting was called for
the ostensible purpose of investigating reports OF
serious injury to the companys business IT al.
iourned until the day following that for which II
was called and It then the contract was let
director being absent and one voting against
the proposition. ~ A., -.
reason of the fduciary character OF Cireenhut ana
Morris to the company as well as for the other
reasons given, the contract should be annuI.ed
Frequently. II is alleged. because there was nor
enough Stop 10 go around, the company was com
PEELED 10 furnish for the cattle at great
loss the cost being in excess of the amount re
ceived for the contract. Greenhut and Morris are
made respondents. ~,
The charge is also made that in the season OF
1898 and 1894 Morris received a large amount OF
feed from mashed grain without paving ANYTHING
for H. under the claim that he was Only Obliged
to pay for such slop which he company iniormei
that he was entitled to the extra grain mashed
as an offset against the provision OF the contract
recurring slop to be furnished to the full extent
OF the barn capacityto Of each dis;llery.
Judge Lacombe in the United States Circuit
Court yesterday ordered that the designations Of
Edward F. Lawrence and John F; Mitchell as re-
ceivers OF the Dstilling and Cattle Feeding Coin-
pany be accepted. and appointed John McNulta as
sole receiver OF the company. The JOINT report OF
the three. former receivers of the company must
he filed within fifteen days. and all the property
ond rurned in 10 the sole receiver