The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-13
DIRECTORS RULED OUT
All Properties of the Concern
to Be Sold by the
Receiver.
TO BE DISTRIBUTED.
An Order That Upholds Charges
Made Against the Negli-
gent Officials.

CHICAGO, Ill, April 12.-The proper
ties of the whisky trust will be sold to the
highest bidder. Judge Showalter of the
United States Circuit Court, in an order
issued to-day, admitted that the trust no
longer had legal existence. The board Of
directors was charged with having deserted
its trusteeshlp; that it had no quorum,
and any election of new board would not
enable them to reacquire the property
from the receiver. The court directed that
the receiver sell the property and chat
the proceeds be distributed among those
entitled thereto" The attorneys for the
Greenhut faction and for the stockholders
consented to the action of the court.
The bill upon which the order was based
was brought before Judge Showalter at
ceiver by Stephen D. Boher of New York
owner of 500 shares, and D. G. Bennett of
Albany, n. Y, owner of 500 shares of the
stock of the Distilling and Cattle-feeding
Company.
81 cannot tell you what influence there
is behind the filing of the bill, said At
torney Gresham, who represented the pc
titioners, whether melted by Mr.. Green
hut's people or by the others. The bill
speaks for itself"
The divergence in this bill from the
original bill begins with recital that the
last meeting of the board of directors was
held February 1. Since the directors have
abandoned their trust and paid no atten-
ton to its affairs, it claims, the sole man
agement has been in the hands of John
McNulta, receiver.
The resignation of Nelson Morris left the
board consisting of Messrs. Greenhut, Ho-
bart, Greene, Freiberg, Hennessy and
Boggs. On April 8, the compliments aver,
Hobart, Greene and Freiberg resigned
There are but three directors left and the
bill alleges that they do not constitute a
quorum and that they cannot fill the va
cancies.
The bill then recites that the Attorney
General OF the State, by quo warranto pro-
ceedings, attacked the charter of the trust,
and that the lower court held that it was
forfeited, and the issue is now pending be-
fore the Supreme Court of the State. The
prayer of the bill to which the order
granted by Judge Showalter adheres is as
follows:
w dH OIOcI cllItIGu utIclH Int
said John McNulta may be appointed re-
ceiver of all the property and effects of
said defendant company and invested with
full title thereto as receiver, and that all
of the officers, managers, superintendent,
agents and employees of said defendant COM
pany shall be required forthwith to deliver
up to such receiver the possession of each
and every part of said property, wherever
situated, and also all books and accounts,
vouchers and papers in any way relating
to its business or the operation thereto or
an Injunction to restrain each and every
officer, director, superintendent, manager,
agents and employees of said defendant
from in any way interfering with the
possession and control of said receiver over
said property, and that at such time as
may be found just and proper the property
of said defendant may be ordered to be
sold and the proceeds distributed among
those entitled thereto"
There was no opposition to the bill, !"
said Mr. Gresham after the attorneys left
the chamber.
"Were the designations of Directors Ho-
bart, Greene and Freiberg made in order to
furnish the ground for the charge in the
bill that the board no longer had legal
existence2" was asked.
81 do not know the motives which in
duced them to resign. The bill says these
men abandoned their trusteeship over two
months ago. / really cannot say anything
about the bill, except what appears in it.
The old trust has no legal existence. and
the receiver cannot turn it back to any one
presuming to stand for it,"