The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-04
ALLEGATIONS DENIED
REPLY OF WHISKY TRUST IREC-
TORS TO STOCKHOLDERS CHARGES.
Assertion tina the Assets of Ii Com
pany Were Wasted as
ACKNOWLEDGEMENTS Upheld.

PEORIA, ILL.,, Feb. 3.-President Joseph
B. Greenhut, of the whisky trust. Benjamin
J. Greenhut, his son, and John S. Stevens,
the attorney for the company, left for Chi
cago on the late train tonight after having
spent Sunday at home. President Greenhut
was seen this evening and asked for a
statement of his version of the receivership
troubles. He said that the best statement
he could make was the sworn affidavit of
the board of directors, adopted at the recent
meeting in Chicago. This statement, he
said, cleared away the charges of misman-
agement with which he has been confronted
on every side since the application for a re-
ceiver 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 talk on that point.
Samuel Woolner, the independent, this even
ing denied the statements that he was in
any way responsible for securing Levi
Mayer as counsel or forming an oppposi-
ton.
The sworn statement of the board of di-
rectors is addressed to Judge Grosscup, and
is signed by all the members of the board.
with the exception of President Greenhut
himself. 1t states, at the outset, that Ho-
bart, Greene, Hennessy and Greenllut have
been directors since the organization of the
company in 1890, and Beggs and Freiburg
since 1893. The directors had chosen Green
hut president at each succeeding meeting,
and he had been unanimously chosen presi-'
dent at each succeeding stockholders meet
ing.
"All business management the state
ment says, has been in accordance with
the directions of the board, and 1T has at
oil tirnaC fiyad DricnS and given directions
to the president as to the management of
the business. We further state that all
said charges of willful acknowledgement or
wasting the assets are utterly groundless,
false and untrue. All our acts have been
according to our best Judgment in the in
terest of the company and its stockholders,
and if there has been any error it was an
error of judgment on the part of the board
Of directors. The acts complained of, and
especially the issuance of bonds, was done,
as We understand the charges, prior to the
annual meeting of 1884,"
The sale of the bonds is gone into at
length and the necessity for the issuance
of the same. The board of directors found
itself confronted by what is considered a
temporary stringency and regarded the sale
The annual meeting of April. 1888. when
81 per centum. of the stock was repre-
scented, ratified the bond issue and Endorsed
all that had been done by the president
and directors. One million dollars of bonds
were sod. The best price that could be
obtained was OU cents on the QOiiar, or
s5o0,O'e, every dollar of which went into
theItreasury. No commission was allowed
or paid and the money thus secured enabled
the trust, 10 tide over the existing diff
Guilty.
The difficulties of the quo warranto pro-
ceedings are gone into and the failure to
after the increase in tax, when up to the last
moment fhe board had been promised $685.
coo If necessary. TIL company is feeding
fifteen thousand head of cattle on con-
tract and the sale of its product is so
limited that it finds itself without suffi-
cient capital and does not consider a fur
Their sale of bonds expsdient. Continuing,
the statement says: The present condition
of the company's finances is, ewing to cir
cumstances, wholly unforeseen ana beyond
the control of the directors. In all things
in the management of the business we tx
ereised our best Judgment; At the annual
at which 81 per cent. of the capital stock
was represented. the president made a
full report of all that had been done con-
corning the issue and sale of bonds. includ-
ing the price at which they had been sold
and the application of the proceeds and a
minute and careful statement of the finan-
cial condition of the company. All of the
acts of the president and directors were
unanimously ratified, approved and con-
firmed by the stock so represented at said
meet n.y.
Since the last annual meeting, in April,
1884, the increase of tax, and the unsuccess-
continued general depression in business
and the forced abandonment of the rebate
SSStchi dAo active ScilPSttlIOH are lHe
things which mainly contributed TO place
the company in its present embarrassed
financial condition. The statement says:
al these things were without any fault,
as we believe, of the board of directors.
We again say that the management of the
affairs of said company has been by the
board of directors, and whatever mistakes
have been made have been mistakes of judg-
ment only. In our opinion it is absolutely
INDISPENSABLE that none of the receivers
should be a person not conversant with the
details of the property and business of the
company. From our association with Mr..
Greenhut, and on account of his intimate
knowledge of the property and his skill
and experience in the business, we believe
that the assets of the company can be made
to realize most with him as one of the re-
ceivers, and the action taken by General
Solicitor Stevens by appearing and recon-
mending Mr.. Greenhut as one of the re-
ce'verS has our approval"
The statement is signed bv all the d-
rectors except President Greenhut, and
sworn to by them.