Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-02-04
FAITH IN JOSEPH B.
Expressed by the Directors Of
the Whisky Trust.
THE RIGHT MAN FOB ONE RECEIVER.

4 Statement Signed and Sworn to by the
Magnates of the Concern Which De.
slares That Every Act OF the Managers
Has Been Ratified by Majority of tho
stockholders-Cause Of the Diniculties
Explained.
PEORIA, Ills, Feb. 4-President Joseph
b. Greenhut, Of the whisky trust; Ben j.
Greenhut his son, and John S. Stevens,
the attorney for the company, left for Chi
cago on the late train last night after hav-
Ing spent Sunday at home. President
Greenhut was seen last evening and asked
for a statement of his version of the re-
ownership trouble. He said that the best
statement he could make was the sworn
affidavit of the board Of directors, adopt
ed at the recent meeting in Chicago This
statement, he said, cleared away the
charges OF mismanagement with which
he has been confronted on every side
since the application for a receiver was
made. Up to this time he had not seen fit
to make a statement, and as to the future
he could say nothing. He was asked
what steps he would take If ousted, but
declined to state.
Stockholders Controlled the Business.
The sworn statement of the board Of
directors is addressed to Judge Grosscup,
lnd is signed by all members Of the board
with the exception Of President Greenhut
nimself. 1t states at the outset that Ho-
bart, Greene, Hennessy and Greenhut
=, Il 81 fbxa ov,sz finp
Of the company in 1880, and Beggs and
Treiburg since 1893. The directors had
chosen Greenhut president at each sue
ceeding meeting and he had been uDani-
mously chosen president at each succeed
ing stockholders meeting. All the busi-
ness management has been in accordance
with the directions of the board, and it
has at all times fixed prices and given di-
rections to the president as to the man.
agement Of the business. 1--WE further
state" the document proceeds, that all
charges of wilful mismanagement OF Of
wasting the assets are utterly groundless,
false and untrue. All our acts have been
according to our best Judgment in the in
tercst Of the company and its stockholders
and If there has been any error it was an
error of judgment on part of the board Of
directors"
Defense of the Isqnd Issue.
The bond issue is gone into at length
and the necessity for the issuance of the
same. The board of directors found itself
confronted by what it considered q
temporary stringency and regarded the
sale of bonds as the best way out OF the
trouble. The annual meeting of April,
1893 when 81 per cent. of stock was repre-
e.I H.. and in
dorsed all that had been done by the
president and directors. One million
dollars of bonds were sold. The best price
that could be obtained was 80 cents on
the dollar, or S50OO00, every dollar Of
which went into the treasury" No COM
mission was allowed or paid and the
money thus secured enabled us to tide
over the existing difficulty.
Caused by Unforeseen Circumstances.
"Thc present condition of the company S
finances is owing to circumstances wholly
unforeseen and beyond the control of the
directors. In all things in the manage
ment of the business we exercised our
best Judgment. At the annual meeting
in April, lSJi, of the stockholders, at which
81 per cent of the capital stock was rep
resented, the president made a full report
of all that had been done concerning the
issue and sale of bonds, including the
price at which they had been sold and
the application of the proceeds, and a
minute and CAREFUL statement of the
financial condition of the company.
All Acts Were Fully Ratified.
"All of the acts of the president and di-
rectors were unanimously ratified, ap.
proved and confirmed by the stock 50 rep
resented at said meeting. Since the last
annual meeting in April, 1894, the in
crease of tax. the unsuccessful efforts tC
forcstall the same, the continued general
depression IN business, the forced aband
onment of the reate system and active
competition are the things which mainly
contributed to place the company in its
present embarrassed financial condition.
Greenhut the Right Man In the Right
Place.
''In our opinion il is absolutely indis
pensible that none of the receivers should
be a person not conversant with the de
tails of the property and business of tn,
company. From our association will
Mr.. Grcenhut and on account of his in
Innate knowledge Of the property ami hi
skill and experience in the business W,
believe that the assets of the company car
be made to realize most with him as on,
of the receivers"
Coal Thief shot.