The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-02-04
THE WHISKY TRUST SCANDAL,
President Greenhut Declines to
Talk.
Refers to the Directors Sworn
Statement.
TIE Document Is Remarkable One and
Is Signed by All tho Directors
Except Greenhut.

PEORIA, ILL.,, Feb. 3-President Green
hut of the whisky trust, Benjamin D.
Greenhut, his son, and John S. Stevens,
the attorney for the company, left for
Chicago tonight after having spent SUM-
day at home. President Greenhut was
seen this evening and asked for state
ment OF his version of the recent
trouble. He said the best statement he
could make was the sworn affidavit oil
the board of directors adopted at the re-
cent meeting in Chicago. This state
ment, he said. cleared away the charges
of Encouragement with which he has
been confronted ever since the applica-
tion for receiver was made.
Up to this time he had not seen fit to
make q statement as to the future and
would say nothing. He was asked as to
what steps he would take il ousted. but
declined to say.
The sworn statement OF the board OF
directors il addressed to Judge Gfossoup
and ia signed by all the members OF the
board, with the exception of President
Greenhut himseli. The business man
agement hsd been in accordance with
the directions of the board. and 1t has
at al! times fixed prices and given d.
rections to the president as to the man
agement OF the business. 1t further
states that all charges of willful mis-
management or OF wasting the assets
are utterly groundless and untrue.
The acts complained OF, and esp eel
ally the issue of bonds. were done, it
says, prior to the annual meeting of
1894. The sale of the bonds is gone into
at length and the necessity for the
issuance OF the same. The board OF d.
rectors found itself confronted by what
it considered temporary etringenoy
and regarded the sale of bonds as the
best way out OF the trouble.
The difficulties OF the quo warranto
proceedings are gone into and the
failure to raise money to remove goods
from bond after the increase on tax,
when up to the last moment the board
had been promised Sc. 600, 900 if neces-
sary. The company is feeding 5000
head of cattle on contract and the sale
of its products is go limited it finds
itself without sufficient capital and does
not consider further sale of bonds ex-
pedient.
The present condition OF the COM
pany's finances is owing to oircum-
stances wholly unforeseen and beyond
the control of the directors.
At the annual meeting in April, 1894,
of the stock holders, at which 81 per cent
OF the capital stock was represented, the
president made full report OF ell that
had been done concerning the issue and
sale of bonds, including the price at
which they had been sold and the sp-
plication of the proceeds. and o minute
and careful statement of the financial
condition of the company. All of the
acts of the president and directors were
unanimously ratified, approved and con.
firmed by the stock 30 represented at
said meeting.
In its opinion 1t lie absolutely indis.
pensible that none OF the receivers
should be a person not conversant with
the details of the property and business
of the company. From its association
with Mr. Greenhut and on account of
mis- intimate knowledge of the property
and his skill and experience, we believe
that the assets of the company can be
made to realize most with him as one OF
the receivers and that the action taken
by our general solicitor, Mr.. Stevens, in
appearing and recommending Mr..
Greenhut as one OF the receivers has our
APPROVAL,