The morning call., 1895-01-31
DOOM OF THU TRUST.
Hopelessly lnsolVent for a
Long Time.
LITTLE MONEY In WHISKY.
Besides That There Was the Worst
Of Management.
JUDGE GR0SSCUP RATHER HASTY.
Says He Will Revoke Greenhut's Appoint.
ment as Receiver if Good Cause
Can Be Shown.
JUDGE GROSSCUP RATHER HASTY.

the whisky trust matter until hearing on
the receivership can be made. The stay
was granted upon the application of Levi
Mayer, representing a stockholders COM
mittee.
Judge Grosscup's order stays all pro-
ceedings, except to conserve the property.
until further order of the court. Levi
Mayer and Mr.. Biiour, the latter of New
York, and Richard B. Hartshorne appeared
in Judge Grosscup's chambers shortly be-
fore 2 O'Clock. Messrs. Runnells and BURY
were also present. Mr.. Mayer presented
petition to Judge Grosscup asking for the
stay in the proceedings until the court
| should dispose of motion to remove both
Mr.. Lawrence and President Greenhut as
receivers.
Mr.. Mayer stated that the application to
the court has been made on behalf of hold
ers of over 100 shares of the $4,000 shares
of the capital stock of the company, and
the nominal holders of these 100 shares
were clerks in stockholders office in New
| York. He recited that the New York COM
mittee had asked for meeting with the
directors of the whisky trust for TODAY.
| and that President Greenhut had informed
them that he could not get the directors to-
gether before tomorrow.
Mr.. BURY made no objection to the stay,
and Judge Grosscup ordered that the stay
be granted. He told counsel to come into
his chambers tomorrow before 10 o'clock,
when he would render his decision.
Replying to criticism of the appointment
of receivers for the whisky trust, judge
Grosscup said to-day that the matter was
conducted in regular form. Both factions
were represented at the hearing, and there
was no attempt at suppressing proceedings,
as the papers were on file all day Tuesday
and could have been seen by any one who
so desired.
ais it not unusual for an application of
this kind to be made out of court?"
'No, it is done every day. This was a
proceeding brought by the stockholders OF
the whisky trust, and both sides were rep
resented. Runnells and BURY appeared
for the stockholders and John S. Stevens
of Peoria, attorney for the distilling and
cattle-feeding company, appeared for the
defendant corporation and consented to
the appointment of raseivers."
"Arc vcceirers af sttfh+e1 as matter of
course on such an'application if the cor
poration consents"
eyes, provided the bill presented makes
out a case for the appointment of receivers.
In this matter there was no question The
company was shown to be hopelessly in
solvent with its assets scattered all over
the country, and that serious loss to the
stockholders would ensue if the property
was not placed in the custody of the court.
A United States court was selected instead
of State court because of the fact that the
property of the trust is scattered over the
country"
Who suggested the name of Mr.. Law
renee and President 6eenhut?"
"T The stockholders proposed Mr.. Law
renee. l have known Mr.. Lawrence a long
time and know him to be man of charac-
ter, ability and integrity, and so l ap-
pointed him. 1t is necessary always to
have man who is familiar with the bust
ness affairs of the corporation as one of the
receivers. The other side suggested Mr.
Greenhut and 1 appointed him. 1t has
been intimated since that a motion would
be made to remove Mr.. Greenhut as re-
! ceiver. If it can be shown that he is in any
way responsible for the mismanagement of
the affairs of the trust of course 'he will be
removed. 1t has also been stated since
that Mr.. Lawrence is fellow director with
Nelson Morris in some corporation"
-" Yes; in the First National Bank"
ooh, that's it, is it? That point is of no
consequence. The steps taken are merely
the beginning of the proceedings. If
other parties in interest have anything to
complain of they can come in on the petit
ton to have the receivers removed and
new ones appointed, or they may take any
other proceeding to conserve their rights.
The appointment of receivers is the first
step in the lawsuit"
1.-THE reason the application for the APP
pointment of receiver was made at my
house." continued Judge Grosscup, twas
due to this circumstance: On Monday
BURY came to me just after court had ad-
journed for the noon recess and asked me
to hear an application for the appointment
of receiver. He did not say it was the
whisky trust, and | did not know what
company it was. I did not want to hear it
as my mind was full of the Debs trial, now
on, and told Mr.. Bury to apply to Judge
Seaman. He said Judge Seaman could not
hear, and l finally made an appointment
with Mr.. BURY at my chambers at 80
O'Clock, just after adjournment of court.
Court adjourned at 4:20, and l forgot all
about my appointment and went home l
found the gentlemen there, where they had
followed me"
The bill for the appointment of receivers
and the order of Judge Grosscup naming
Mr.. Lawrence and President Greenhut Law
in the offices of Clerk Burnham of the |
United States Circuit Court from 1 o'clock |
on Monday night until o'clock yesterday
afternoon, when it was sent to Peoria
ave had promised, said Chief Clerk
Writ of Mr. Burnham's Office, "to keep the |
matter quiet until it should be made pub |
lie through the clerks office of the south |
ern division of the northern district at
Peoria. 1t is not an unusual thing to |
accommodate attorneys in this matter
when both sides desire it, but, of course.
never when the bill OF suit is matter of |
record in court unless service is not had
on defendants, when we are allowed one
day OF suppression for service. In the case
of this bill it was not on record in our
office in Chicago. We accepted it for the
Peoria office, and there was nothing obi
gatory on us to make it public. judge /