The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-26
REPORT OF EXPERTS
hooks or THE WHISKY Trust Al
LEGGED TO BE DOCToRED.
Seeming Discrepancy Of Nearly Two
Million DoIiars-DeninI from Ex-
President Greenhuf.

CHICAGO, March PA most sensa-
tional report was submitted to Receiver
McNulta, of the Whisky Trust, to-day. by
the experts who, for a month, have been
examining the books of the Greenhut man
agenent of the concern. Charges of Jug
Cling accounts, doctoring books and similar
work are made and the report asserts
that the former directors and officials, by
disposing of stock TO themselves. have left
a discrepancy of 1924 20. The report states
that 4,49s shares of stock were sold by
the officers and directors to themselves at
As cents on the dollar and that conse-
quently almost 81, GOO, coo is due from them
to the stockholders of the Distilling and
Cattle-feeding Company. Whether or not
any action to recover the enormous amount
thus said to be due will be taken is as
yet undecided. General McNulta has called a
conference of interested persons to consid-
er the matter and what the decision will
be is a question, but there is little doubt
that the experts report will result in a
hot fight between the present management
and the Greenhut people.
The charges of the alteration of the
books to cover the alleged discrepancy
arising from the sale of stock is elab-
Grated in a portion of the experts re-
port as follows:
Balance sheet March 81, 1S9I-Original
construction account. $50. 7se, 51o.62; treasury
stock, IS, 49S, 400.
Balance sheet March 81, 1sa2-OriginaI
construction account, $50, 7S6, 510.92; treasury
stock, sale of 3f,9S4 shares at $40 per share,
$l.5I4,2S0; difference on 3i,9S4 shares of stock
as stated on the books to have been sold
120.
I'll first two items on this balance
sheet-original construction account and
treasury stock-agree with the company's
books as they We're on May 1. 1890. After
the sale of the treasury stock at SIS in
June, 1891, the said two items were changed
on the books in the following manner:
First, the figures So, 49S, 400 opposite treas
ury stock were scratched out and the
words entry void written opposite.
the original construction account We're also
scratched out and the figures $34, 284, 910.6 So
ine being the s sum a Of both items N y" nsa'
The experts thus charge that the record
of the stock sale was destroyed by con-
solidating it in the book entries with the
original construction account, completely
oblterating the stock item, but maintaining
resulted from the purchase. of the Schu-
feldt and Calumet distilleries in 1891, when
an additional issue of stock was made
Receiver McNulta said to-day that he
believed that more sensational discoveries
would follow the further investigations of
the exports. They have much more work
to do, he declared. before the affairs of
the old management are untangled. Cen
eral McNulta refused to say what action,
il any. would be taken against EXPIRES
ident Greenhut and the ex-directors of the
trust.
resident Greenhut. of the Whisky Trust,
arrived in Chicago to-day from New York.
Il can state positively. he said, that the
experts employed by the receiver did not
find any papers in the private safe at Pc
oria which bear on the Gibson case, as has
been stated. | put away all the papers
that were in the safe, and, therefore. 1 am
certain about its contents. AS to the
charges which have been made I have moth
ing to say. L shall try my case in the
courts
"What about the disclosure of the experts
that the alleged purchase price of the Shu-
feldt distillery, $3.50, 900 is twice charged
on the books of the company with nothing
to show for the second entryg'
Il have explained that to the satisfaction
of the receivers"
The receivers say they do not UNDER
stand"
Il repeat. I have explained it to their
satisfaction"
Mr.. Greenhut was asked further about
the charges of the erasure and various en-
tries on the books. He was asked to ex-
plain what was done with the large sums
charged to the statistics account, but de-
clined to make any explanation Mr..
Greenhut remained in conference with ex-
Receiver Lawrence for some time, but both
men declined afterward to say anything
about the matter under discussion.