The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-17

Chicago, May 1.-THE elimination
of the charges. against ]. B. Greenhut
ex-president of the whisky trust, and
come Of his associates, was reached
this evening il a bill fled in the
United States circuit court by Receiver
John B. McNulta. Greenhut and Mel
son Morris are accused of having
used the funds OF the trust for out
side speculations Of a personal char
acter, in which they met with a loss
of 100000. Then. to make good the
losses. they are charged with having,
in the summer of 1898, conspired TO Sc
cure the assent of the board of direc-
tors of the trust to the issuance of
be5Ss
II It's further charged that they sold
el,000,000 Of the bonds at 80 cents on
the dollar, appropciating the proceeds
TO make up their losses in speculations
and secured possession of $500, 900 of
the bonds so issued at the 5G-cent Valu-
alton in order to milk the trust for
the other so cents on the dollar, thus
giving them profit of 100000 on the
transaction besides securing the pay
ment of their losses in SpeculatiOns.
Tie character of the speculations is
got set fOrth
Besides President Greenhut and
Morris, the other defendants to the bill
are; EX-Directors William N Hobart
and J. Walter Freibery. of Cincinnati:
Lewis Maddox. Hobart's partner, and
julius FreiberS. Walters brother, and
the Central Trust company, of New
York
As specific instances of fraud it is
alleged that in September, 1893 Green
hut as president, and Hobart. as treas
urer. scld 10 Morris $4,000 of the bonds
for $37, 600.
On October Il. 1888, Greenhut and
Morris sold to Maddox and Hobart. OF
cincinnati, $4,000 of the bonds for
$4,000, the payment being made by \
note OF the trust held by the tfrn.
Hobart, the treasurer, being a men,
1ner of the firm. On the same date
99VOVO OF the bonds We're sold to J.
y alter Freiberg, Of Cincinnati, for
Sz9'VVO, the latter also being a director
OF the trust 1t that time.
The receiver declares that all sucy,
sales TO said directors were contrary
10 the obliga ton of their trust as Of
metals, and were made with the knovI-
edge of the other members of the
company or the consent of the other
directors. None of the proceeds. the
receiver alleges, were ever applied in
me use Of the Distilling and Cattle
Feeding company.
The receiver AYERS that sSOO.OOO Of
tie bonds sold to Counselman & Dav
OK Saicago, are held and owned bv
Ne9rI Morris: that the $4,000 of
bors# sold to Morris are still held nv
MIN that the $4,000 of bonds sold to
Maidux & Hobart are still held bv
mem jointly. and the $4,000 worth
purchased by ]. Walter Freihere~ are
held by him and his brother, julius
freiherg.
The 81 100000 Of bonds deposited with
the Central Loan and Trust COMPANY
as security for rebates, are still in the
possession Of the trust company.
The receiver prays that the court en-
Join all Of the defendants from dis
posing Of the bonds to other parties:
that they be requil cd to answer, and
that an accounting be had; that any
amount Of the bonds ascertained to be
owing TO the trust be paid for at the
purchase price of so cents on the dol
lar, and that the balance of the bonds
be cancelled by the court
The receiver reciteS that he is desir-
osf Of winding up the affairs of the
T1dst and wishes to sell its property |
and make a distribution to the stock /
holders.
President Rice. of the reorganization
committee Of the Whisky trust, pre-
sided over a brief meeting at the |
Great Northern hotel this afternoon. |
No business was transacted and an
adjournment was taken until tomor- |
row at $50.