The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-03
TO GUST RECEIVERS
APPLICATION OF STOCKHOLDERS
HEARD BY JUDGE GROSsCUP.
Charges Made Against President and
Directors by Attorney Mayer-Dc-
cfsion to be GiveH Monday.

CHICAGO, Feb. 2-Proceedings in the
whisky trust litigation in the United States
Court opened with a promise OF sharp
battle to-day. Judge Grosscup took the IN
itiative. He evidently intended to find what
foundation there was for rumors that the
receivers. had not oeen acting in the in
terest of the property. President Greenhut
was called to the stand soon as court
opened. Judge Grosscup said he intended to
ask few questions before arguments for
the removal of the receivership began
Ibid you deal in any whisky trust stock
Monday or Tuesday, he asked the VII
ness.
.Yes." replied Mr.. Greenhut. Tuesday
/ bought between 5000 and 1900 shares on
the New York stock market, did not SELL
and have the stock bought then"
Receiver Lawrence, Mr. Greenhuts as
sociate, said he neither bought nor sold any
stock.
Attorney Levi Mayer then began his argu-
ment on the motion to GUST the receivers.
In court were present large numbers OF
persons interested in the proceedings.
Among the directors in attendance were
Messrs Greenhut, Beggs, Hobart, Green and
Hennessey Nelson Morris was present and
represented by counsel. While Mr.. Mayer
was presenting the argument for the pro-
testing stockholders, President Greenhut
asked permission to interrupt and said he
was mistaken about the purchase OF 5000
shares of the stock having been made on
Tuesday. 1t was on Wednesday after full
publicity had been made of the receivershlp.
To a further question of the court at that
time he said ne was short, how much he
did. not know. Not as much as 15, )o) shares
as declared by Mr.. Mayer, however. He
had purchased the stock at sSs, the price
<~ff frrvr ha
the preceding days, and not over one point
off from the price at the time he went
short. ,-,.,,
viewed the allegations of the stockholders
committee He said that his clients repre-
sented 100000 shares OF stock ana, since
leaving New York, they had been advised
of 1900 more shares being placed on the
list OF the applicants for the receivershp
Olmstead was a partner in the firm Of J.
through whom Nelson Morris transacted
business. Olmstead was in the New York
office of the trust and Wormser was a
seyenteen-year-oldb boy in the office OF Good
hart The bill was signed by no one 0! the
complainants, but by one of the solicitors,
| trust MIR. BURY. There was sl50,O0O in the
| bank to the credit of the trust. and the IN. IN
debtedness of the trust Is not over so'V0"
CHARGES AGAINST DIRECTORS.
| President Greenhut, Mr.. Mayer said, drew
| three salaries and had several accounts
| against which he was permitted to check.
| The directors OF the trust each received
| annually salary of $500 and drew other
! salaries as managers of distilleries. Be-
| Sides President Greenhut was interested
| with Nelson Morris in cattle feeding con-
| tracts with the trust. Greenhut, he said.
| was the president of cooperage and coal
| companies selling their output to the trust.
| His bondsmen were relatives of Morris.
| Mr. Lawrence was an official of bank in
| which Mr.. Norris transacted his business,
| and which bank had secured indebted
| ness of $500 600 against the trust. He knew
| that Greenhut was $1,000 shares short; that
! the directors did not hold. all told one thou
| sand shares of stock, and that several of
them held less than one hundred shares.
| Olmstead, WHO leads the list of the three men
| applying for the receivership, never held
| any stock until Monday last, when five hun
| dred shares were transferred TO him by a
| New York broker an hour or two before the
application They would prove 81 tpntlnuea p t,'st
| did not know of the application or the ap-
| pointment of the receivers.
| the receivers. He read an aff1davit signed
| by directors Hobart, Beggs. Greene, Frsi-
sagged psrg dnt the financial history of the trust
/ and asserted the need OF receiver and re-
/ ouested the court 10 retain Mr Greennut,
| hecause of his intimate knowledge of the
| afrairs of the company. The affidavit at
frihuted the failure to secure funds to pay
| the tax on spirits last month, when the IN
| Sacf crippling the financial condition of the
/ Company. Mr.. BURY concluded his pre-
/ sentation by reading copy OF the resolu-
fior, adopted by the stockholders at the last
| annual meeting approving OF President
| ,sreenhut's administrators.
NJ Runnells followed in explanation OF
| xta manner IN which the bill was hfed. He
| said that he had met Qimstead in New
York. and the latter naa tainsd @ over s,.a xne
] seSted appointment of the receiver. NJ