New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-19
FORECLOSCRE SUIT FOR 4 MILLION
NEW DEVELOPMENTS IN THE FIGHT OVER wHIs-
KEY TRUST AFFAIRS

NEW DEVELOPMENTS IN THE FIGHT OVER wHIs-
KEY TRUST AFFAIRS
Chicago, May 1S.-In a bill filed in the United
States Circuit Court this morning the Central Trust
Company of New-York asks for the foreclosure OF
an IS 100000 mortgage held by the petitioner on the
property of the Distilling and Cattle Feeding Com
pany. TO secure the payment Of that amount Of
bonds issued Although the mortgage is for $Sooo.-
0c0 the sum sought to be recovered by the fore
closure is only sl.OOO.0Oo This is the amount In
bonds held by the Greenhut-Morris contingent OF
the Whiskey Trust $4,000 OF the whole sum being
held by these two alone
A dplomatcally worded attack on the receiver
ship is concealed in the bill II sets up that the
Dstilling and Cattle Feeding Company has now
ceased doing business and has. therefore. ceased
perform the offices conferred upon 1t by its char
ters; that Receiver McNula has been forced to bor-
row various sums to carry on business OF the COM
pany. at time much as s35oo0 and finally.
that by reason Of the financial embarrassment OF the
Trust and by reason Of the appointment OF the re-
ceiver and the conveyance Of all the company's
property 10 him. 1t Is impossible for the company
TO preserve protect the property.
The bill is not taken seriously by those best In
formed Whiskey Trust affairs. 1t appears TO he
simply another move in the complicated game which
the two factions OF the Trust are playing against
each other Counsel for the Central Trust Com
pany aver. however. that 1t Will be pushed and an
effort made TO induce the Court TO wind up the
affairs or the company.
Attorney Herrick. representing Receiver McNua.
appeared before Judge Showalter. In the United
States Court. this morning and asked that the suit
to recover money from ex-officers and directors OF
the Whiskey Trust. which was MED on Thursday.
be dismissed far j. Walter Freburg is con-
cerneG. Greenhut, Morris. Freiburg. Hobart and
others alleged in ths bill to have defrauded the
Trust OF large sum OF money by buying for them
selves bonds al nifty cents the dollar whch were
worth par. The bill asks that all VINO nave 70
purchased bonds be compelled 10 make RESTITUTION
and that those who wish be allowed 10 sell pack
to the Trust their bonds at the price they gave ior
them Frelburg held nifty OF these bonds TOT which
he paid S23.VO lie now offers 10 restore mem 10
the Trust on payment OF the sum ne gave Tor mem:
granted the order.
Stockholders OF the Whskey Trust mel al me
Great Northern Hotel for the third time this aitei
noon, and. az before. adjourned immediateiy upoh
assembling without taking any actioh hr P'ns.-
caly all the stock, even the Greenhui interest nes
been represented at every meeting. there mas preh
considerable speculation about the oDJeet OF l,'ls
meeting IL II said In some quarters thht lhe M neo,
ganzation Committee Is meeting win sgme opPoai pP
ton in getting the consent OF stockho'ners " se
certain property which II II desired 70 ~, ~ o
but this does not seem 10 have mucn Ionn,,,n" ~
as the Reorganization Committee hold pIoHles 10.
q large majority Of the stock, ana coula voe
about an they pleased The meeting wnicn " IIse,.
an adjourned meeting from the annual mec.'hs I"
Peoria zee shtn"rnsA until Tusshsv- 81 "'~'