The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-04-17
BIG HOLE IN WHISKYS BARREL
A TOTAL OF sI,I39.44s SEEMS TO
HAVE GONE IN THE LEAK.


The Experts Examining the Books
of the Trust Unable to Tell Where
the Big sum Went To-sOme Very
Queer Methods OF bookkeeping
in Use by the Greenhut Faction,
Heavy Discrepancies Found in the
DistilIery Purchase Accounts.
Chicago. April 16-Of the many sensa-
tions furnished by the whisky trust since
Joseph b. Greenhut first had himself
appointed receiver and was ousted by the
stockholders. none approaches in magni-
tude that furnished by the filing with
Judge Showalter in the United States
circuit court this afternoon Of the balance
sheet OF the company as it appeared
March 81. 1888. Practically the whole
period OF the alleged iniquitOus reign Of
the Greenhut faction is covered by the
ngures given therein, which are startling
even to those who had been told in ad-
vance that disclosures of an unusual ma
ture would be made.
The sum of Si,l3s,4i3 is totally unac-
counted for, to say nothing of the other
items which appear all right at first
glance, and which are onset by ngures
on the books.
The first Irregular item occurs in the
purchase of the Shufeldt and Calumet
distilleries. The net cost of these distil-
leries after charging the inventory to
capitalize the operating plants, is put
down at 81 ,634.2 279 The amount derived
from the sale Of "a. 9s4 shares of treasury
stock Ohese are the shares which the
company sold itself is then deducted,
leaving in round numbers $4,000. a note
by the experts in regard TO this pur-
chase charges that S2H, ,44S are unaccOunt-
ed for on the books.
Another note in the same connection
is as follows: ITO meet cash payments re-
quired by contracts for the purchase of
the Calumet distillery, the following two
deposits we were re made IN IN chicago; 4 de-
of Chicago, and deposit OF SlaO,0O IN the
Chicago National Bank. No vouchers or
checks showing to whom paid"
In the opinion of those who are in posi-
tion to know while no open charge can
be made on this last item, II shows a
method of bookkeeping, If nothing more.
that IS to say the least exceedingly ir-
Coming to the purchase of the Star,
Crescent, Central and Nebraska distille-
ries the experts say: I'VE find no voucher
or other evidence of the expenditure OF
six drafts on ]. r. Greenhut issued be
tween Nov. 10 and 3o 1892, and paid
through the German-American National
Bank of Peoria, supposed TO De drawn Tor
cash payments on account OF these dis
tilleries."
in favor of the Star and Crescent and the
Central and Nebraska distilleries, all paid
by exchange through the German Amerl-
can National Bank amounted TO Sls9WO'
and 100000 was paid to Samuel Woolner,
for which there Is no voucher ana 10 winch
the experts have affixed the following:
Explanation required"
The total deductions from the cost OF
the purchase of these distilleries are put
down at s1S5,000 which is the second
discrepancy shown in the report.
The third discrepancy comes under the
head Of Items to be accounted for" The
sum of these IS S510, 1874. These items OF
this sum appear as payments to Green
hut or Woolner, or payments to others
on Greenhut's check This money is put
down as loss charged against investment
accounts in the report Of the experts. and
a note states the amount was written
off after the books were closed for the
fiscal year of 1S93 and that no details or
explanation was given.
one remarkable note closes the balance
sheets: THE conpany's books are under
the charge Of the treasurer, who is also
one Of the directors. They contain hgures
only which have been entered by the book
keeper without any information as to
their meaning except what the treasurer
chose 10 give him. or what he may have
inferred from the circumstances. The
treasurer understood the books, but no
one else, except possibly the directors.
Hence, il has been an impossibility 70
properly audit the expenditures, which
run into millions, from the books IN their
present condition. Some idea of the total
lack of information in the books Is given
by the notes attached in this report to
some of the items"
Levy s. Meyer and Douglas $ Rice, OF
the reorganization committee. left for Pc
oria this afternoon to attend the annual
meeting of the trust there tomorrow.