The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1895-02-21

filling firms met May 10, 1887, and
formed the Distillers and Cattle Feed
ers' company. The trustees were Jo-
seph B. Greenhut, William N. Hobart,
George K. Duckworth, Lewis lei. Green,
Peter J. Hennessy, Alfred Bevis. War
rem H. Corning. Adolph Woolner and
John Fl. Francis. They were to remain
in Office ayear, and the trust was to con
tinue % years. Within q year the trust
had absorbed 81 different distilling
companies, all duly organized under the
laws Of the respective states where they
did business.
In less than three years from the date
of organization the trust had absorbed
or crushed nearly all opposition. but ON
Feb. IL, 1890, for the purpose OF max
ing more complete and invincible the
monopoly in producing alcohol. spirits
and distillery products and for the pur-
pose of more effectually preventing COM
petition, the trustees organized under
the laws of Illinois q corporation which
they called the Distilling and Cattle
Feeding company and which was CAPT
talized at $S5, 600, 600. Eight of the
original subscribers, Greenhut, Hobart,
Corning, Green. Hennessy, Woolner,
FL. L. Terrell and Nelson Morris, each
took $4.a75, 900 worth OF stock, and III.
M. KinRman took $50, OOO worth.
Four years after its organization the
trust controlled 50 per cent of the en-
tire production Of high wines, spirits
and alcohol i'm the United States and
disposed of 10, 000, 900 gallons annually.
Upon entering the trust each distilling
company turned in it's capital stock. and
many companies leased their distilleries
to the trust mt certain rentals, Dozens
Of these d~istilleries were shut down,
crippled or entirely dismantled. and it
was not long before 10 distilleries were
doing all the work. The output was cut
down, and q masterful scheme for con-
trolling the trade was carried out by
President Greenhut. The output of the
trust was disposed of to customers
through certain distributors, and with
each sale there was presented to the GUS
toner q rebate voucher promising to
pay the purchaser Q cents a gallon ON
the amount purchased at the end of
six months provided the purchasers had
bought all his supply of such articles a.
were manufactured by the trust from
the members of tho trust exclusively.
Every effort was made to crush out all
opposition, and one of the trusts most
troublesome competitors, the Shufeldt
distillery Of Chicago, was blown up
in q very mysterious manner. One
Thomas Dewar, q United States gamRer,
declared that Secretary George Gibson
of the trust gave him an internal ma
chine and offered him $40, 900 IL he
would blow up the distillery. Gibson
was deprived of his office by the trust
and spent some time in Canada. Con-
gress investigated the trust, and consid-
cradle or o sensation was caused at the
time, but nothing came of 1t.
Once in full control of the whisky
business, the trust began the gigantic
scheme for making money. Prices were
raised. large dividends paid, the price
of the stock was driven mp, and at the
opening of 1898 IL was on the top wave
Of speculative popularity. In one week
in May, 1898. &15. 600. 900 worth OF its
stock changed hands. For some time
previous the trust, relying upon what il
believed was o sure '4tip" that congress
would increase the revenue tar on Whis-
KY from 90 cents TO 81. %, accumulated
an enormous surplus stock of whisky In
bond with the idea that when congress
increased the tax the trust would be- en-
riched So cents on every gallon OF .whis-
~ il possessed. It was estimated that
III the tax was increased the trust would
clear ~. 600, 900 q month for many
months after the law went into effect.
There was such q public clamor about
the matter, however. that congress did
not increase tho tax. and the trust lost
an q amount OF money. The
struggle to oust President Greeni.uk On
the part Of the majority stockholders i
. matter Of recent history. Ehe trust II
] now In the hands OF three receivers.