Waterbury evening Democrat., 1895-01-30
WHISKY TRUST SLUMPS
The Chicago Faction Has Re-
ceivers Appointed.
WALL STREET is EXCITED TODAY.

The RcaSon Given For the Action Is That
Large Amounts of Rebate win Soon Fall
President Greenhut Approved of
the Proceedings.
CHICAGO. Jan. 80. - Receivers were
named for the Distilling and Cattle Feed
ing company by Judge Grosscup of the
United States circuit court hero The APP
lication was made late on Monday after
noon by owners representing LOO shares
of the stock of the company. and it was
coneurred in by Mr. GrecnhIt the presi-
dent of the company.
Mr.. Grcenhut under whose manage
ment the property has been brought to its
present predicament, was appointed one of
the receivers. his associate being Mr. +.
+. Lawrence. n director of the First Ma
tional hank of Chicago and a close asso
oiate Of Nelson Morris until recently one
of the magnates of the trust.
The reason assigned for wanting recsiv-
crs was that the company was being press
ed to pay its debts and had no funds to
meet the demands 1t was represented
among other things that OH Feb at least
81, 900, 900 in relates wuuld fall due. and
unless they We're promptly paid The va
rious diStillerieS would be attached and
Tho rebates mentioned arc due to whole
sale dealers N whisky who enter into con-
tracts that they will buy no liquor except
that made Ivy the trust. The whisky is
charged to them at n 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
frC to cents y gallon. These rebates
are due Feb. |, aud according to the bill
presented to Judge Grosscup the company
has no money to lay them, The amount
of rebates due was represented as some
thing like 81 900, 600 Other forms of in
debtCdness We're also mentioned in the bill
John :. Runnclls, attorney for the stock
holders. said:
Review of the Petition.
The bill is u vOluminous one and re
cites history of the trusts financial and
business operations since 1898
reviews the adoption of the rebate
| system, whereby the trust aimed to mo
nopolizo the trade by Offering rebate OF
from cents upward per gallon ON spirits
to the distributors OF the trust and deal
| crs, the TO, ate being given when the hold
| ers of the certificates filled up blank &c
| the effect that they had not used the prod
net of another country, 1t also recites
! that the purchase of distilLcries in order t
! centraliZc tho trade absorbed all Of the
means of the Trust. and the erection and
| operation of outside distillerieS kent the
| price of the product down to IL point lie
low the profit, and this continuing dragged
the trust down To the situation which con
fronted it short time ago, when circular,
were sent tn the stockholders asking fol-
an agreement TO a reorganization, Whit
virtually meant an assessment On tn,
stock.
As it well known. this circular di,
not meet with tho ready &C, eptanCe of thu
stockholders On Feb | largo amOun
of rebate certificates fall due, The tr, as
ury of the trust practically depleted Their
was no way in sight hy which paymcnt
| could b. net. The result would be, il
the default 81 such payments attachment
of the trust $ property and the dissipation
of all its assets without an adequate rcturn
1t was after rccitinG these facts ant
pointing out the ultimate effect Of tn
failure of paving rebates that the stock
holders in the petition asked the court 4
appoint receiver. The attorney for tn
trust admitted those conditions to tn
court ana agreed TO the appointment