The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-02-04
WHISKY TRUST TROUBLES.
sworn Statement of the Board O
Directors.

Directors.
Peoria, Ill, Feb. 5.-President Joseph
3. GreeDhut, Of the whisky trust, BENZ.
C. Greenhut, his son, and John S.
Stevens, the attorney for The company,
left for Chicago tonight, after having
spent Sunday at home
President Greenlhut was seen this
evening and asked for a statement Of
his version of the receivership trouble
He said the best statement ne could
make was tine sworn affidavit Of THE
board of directors, adopted at the re-
cent meeting IN Chicago. This state
ment, he said, cleared away tine charg-
es of ndsmanagenent with which he
has been confronted ever since the APP
plication for a receiver was made. Up
10 this time, he had not seen fit to
make a statement as TO the future.
slld he could say nothing.
He was asked as ito what steps he
would take if ousted, buzz declined TO
say.
samuel Woolner, the independent, de
MED this evening that he was in any
way responsible for securing Levy
Mayer as counsel, OF for forming an
opposition.
The sworn statement of the board
of directors is addressed to Judge
Grosscup, and is signed by all the
members OF the board with the excep-
ton of President Greenhut himself. K
States at the outset that Hobart,
Greene, Hennessy and Greenhut have
been directors since the organization of
the company in 1896, and Beggs and
Freiburg since 1893. The directors had
chosen Greenhut president at each
succeeding meeting and he bad been
unanimously chosen president at each
stockholders meeting. All the bust
ness management had been in accord
ance with the directors of the board
and it has at all times fixed prices and
given directions to the president as to
the management Of the business. I'VE
further state that all charges Of wilful
mismanagement or of wasting the as
sets are utterly groundless. false and
untrue. All our acts have been ac-
cording to our best judgment IN the in
terest Of the company and its stock
holders and if there has been any error
il was an error Of judgment on the
part Of the board Of directors" The
acts complained Of and especially the
issuance Of bonds were done, as we
understand the charges, 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 directors found ttsel1
confronted by what is considered {
temporary stTfngency and regarded the
sale Of bonds as the best way out o.
the trouble.
THE present condition of the com
pany's finances is owing to circum
stances wholly unforeseen and bevonf
the control Of the directors In al
things in the management of the bust
ness we exercised our best Judgment
At the annual meeting in April
1884, of the stockholders, at which g
per cent. Of the capital stock was rep
resented, the president made a full
report Of all that had been done con
corning the issue and sale of bonds
including the price at which they haC
been sold and the application Of thu
proceeds and a minute and careful
statement Of the financial condition o.
the company. All of the acts of tht
president and directors were unani
mously ratified, approved and con
hrned for the stock so represented a.
said meeting. 1t must be by those wht
have purchased their stock since thel
and with full knowledge Of all thes
matters. Since the last annual meet
ing in April, 1894, the increased tax AM
the unsuccessful efforts to forestaH tn
same and the continued general de
preston in business and the forces
abandonment of the rebate system
and active competition are the thing
which mainly contributed to place tn
company IN its present embarrasse,
financial condition.
''An these things were without an,
fault, as we believe, of the board O
directors. We again say that the man
pPpT1n0T nf fhn q ffoirsc ~ col
has been by the board of directors, an,
whatever mistakes have been mad
have been mistakes of judgmen
alone"