The Van Buren press., 1900-03-03
FLOUR TRUST IS BUSTED.
The United States Milling Co. Has
Been PLACED in the Hands of
Receivers.
4 STOCgHOLDER INSTITUTED THE SUIT.
Tbe Tight Money Market aud De-
prcssion in Industrial SECURITIES
Interfered with the Compnny's
Plans for Securely Financing the
Trust,


Milwaukee, Feb. 27.--The United
States, Milling Co., generally known as
the Flour Trust, collapsed Saturday
afternoon, but the fact did not become
known until Monday when Judge Jen.
kins in proceedings ancillary to the
United States court OF New jersey
appointed three receivers for the COM
panN, two of whom are now in charge
of the property. The receivers are
Daniel Thomas, of New York; Charles
E. Kimball, of Summit, N. j., and
Albert C. Loring, of Minneapolis.
Cause of the Collapse.
The collapse of the company was
due, it is said, to inability to float its
securities on the open market. .}.
George William Ballou, the stock
holder who Institutes the suit in
which the receivers are appointed,
makes the following statement con-
cerning the causes leading to the fail
uI, of the company, in the complaint:
Couldn't Garry Ont Its Plan.
'That in the organization of the
company" says Mr. Ballou, ut had
been hoped that sufficient means
would be provided for the purchase Of
the property required by the company
and to supply sufficient working capi'
tai to carry on its business by the sale
OF its first mortgage collateral gold
bonds; but because of the tight money
market and the depression in indus
trial securities, the company was una
bic to carry out the plan and was
obliged to resort to borrowing money
on its collateral trust bonds, and
otherwise urged to secure a temporary
loan by its issue of so-called trns,
bonds, and further, by the failure Of
this plan, by borrowing in open
market.
Compnny's Floating Debt.
The money so borrowed constitutes
the floating indebtedness, which
amounts to $1,09j, ,j0S.0S, of which
Sl4l,36j is due, and $50l,3jO is on de-
mand loans
The United States Milling Co. was
formed with a capital stock of S25,OOO,'
600 on April 27, 1899, having secured
control of the following milling prop
erty!
Properties Involved.
In Milwaukee~-rhe Daisy and Faist
Kraus mills.
In Superior-The Lake Superior, the
Anchor ard the Listmann mills.
In West Snperior-'rhe Grand Re-
public, the Freeman and the Mlnkota
mills
In Minneapolis-The Excelsior, the
Standard and st, Anthony mills, to-
gether with oj per cent. of the capital
stock of the Northwestern Consoli'
Gated Milling Co., which operates and
owns five big -four mills.
In Duluth--The lmeprial and the
Constructed terminal elevators,
In New York State-rhe Syracuse
mills, the Baldwinsvillc mills, the Ur'
| ban mill.
In New Jersey-Ninety-fve per cent,
Of the Hecker-Jones-Jewell Milling
Co., which operates and owns -four
large mills.
Further Proceedings Necessary.
The proceedings will have TO be in
stituted in every circuit where the com
pany owns property. The bond fixed
by the New Jersey court is 100000
in each case. Judge Jenkins requires
them 10 give an additional bond OF
$4,000 each, While the original suit
is in New Jersey, the greatest ltga'
tion will probably be in Wisconsin, as
the majority Of the company's proper
4. t.. 90