The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-30
Joseph ID. Greenhut and E. F. Law
renee Placed in Charge on Petition
of New York Stockholders.
COULD NOT PAY REBATES
AND UNABLE TO FLOAT LOAN TO
MEET OBLIGATIONS.
Action Taken Last Night at the Resi-
dence of Judge Grosscup I'm Chi
cagO-What the Petition Says.

CHICAGO. Jan. 29.-Last night, at the
residence of Federal Judge Grosscup. on
application of New York stockholders of the
Whisky Trust, representing about So 900, 900
of stock, Joseph b. Greenhut, of Peoria, and
E. f. Lawrence, of Chicago, were appointed
receivers of the Whisky Trust. The order
appointing the receivers, with the bill upon
which it granted, were sent to Peoria
to-day, where they will be placed on rec
ord. The application for a receivership was
based, as set forth in the bill, on the gen.
eral poor condition of the business of the
trust at the present time and on the in
ability of the organization to float an issue
of bonds, from the proceeds of which it
was expected to gain financial relief. Attor-
ney Stevens, representing the trust, con-
sented to the plan proposed by the New
York stockholders and the appointment was
made with Greenhut representing the trust
in the receivership and Mr.. Lawrence the
stockholders. Similar proceedings will be-
had in each State where the trust owns
property.
John S.. Ronnels, attorney for the stock
holders, said: 1.-The bill is a voluminous
one. and recites the history of the trusts
financial and business operations since 1893.
1t reviews the adoption of the rebate sys-
tenn, whereby the trust aimed to monopolize
Lie trduo ny OueTluS d TeDdIc or from
cents upward per gallon on spirits to dis
tributors of the trust and Dealers the re-
bate being given when the holders of the
certificates filled up q blank to the effect
that they had not used the product of an
other company. 1t also recites that the
purchase of distilleries in order to central
ize the trade absorbed all of the means of
the trust, ana the erection and
operation of outside distilleries- kept
the price of the product down to point
below the profit, and this continuing dragged
the trust down to the situation which con-
fronted 1t short time ago when circulars
We're sent the stockholders asking for an
agreement to a reorganization which vir-
tually meant an assessment on the stock
AS is ws II known this circular did not meet
with the ready acceptance of the STOCKHOLM
ers. On Feb. 1 large number of rebate
certificates fall due. The treasury of the
trust practically depleted, there was no way
in sight by which payment could be met.
The result would be, in the default OF such
payment, attachments of the trusts proper
ty and the dissipation of all it's assets with
out an adequate return. 1t was after re-
citing these facts, and pointing out the
ultimate effect of the failure of paying the
rebates that the stockholders in the petition
asked the court to appoint a receiver. The
attorney for the trust admitted the condi-
tions to the court and agreed to the ap-
pointment.''
The reason assigned for wanting receiv-
ers was that the company was being
pressed to pay it's debts and had no funds
to meet the demands. 1t was represented,
among other things, that on Feb. l almost
100000 in rebates will fall DUE and unless
they were promptly paid the various dis
ar;a -
ing capacity greatly reduced. The rebates
mentioned are due to wholesale dealers in
whisky who enter into contracts that they
will buy liquor except that made by the
trust. The whisky is charged to them at
certain rate, and If, at the end of six
months. it is found the wholesalers have
handled nothing but trust whisky they are
allowed a rebate Of from 3 to cents a
gallon. These rebates are due Feb /, and,
according to the bill presented to Judge
Grosscup, the company has no money to
pay them The amount of rebates due was
represented as something like $1,000, 900.
Other forms of indebtedness were also
mentioned in the bill.
Edward F. Lawrence said tonight that
his appointment receiver was a surprise
He did not know, he said, why the lawyers
had named him. "As matter of fact"
he added, Il know very little of it except
that Mr.. Greenhut and had been appoint
ed receivers. and that we will have to give
100000 bond each. I shall file my bond
soon, and I suppose we will begin the task
of finding what the assets and liabilities
are. great deal of property will have to
be inventorized and its valuation deter
mined. / have not even read the bill which
resulted in the appointments of the receiv-
ers