The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1900-03-01
Three Receivers Have Been APP
pointed for the United States
Milling Company.
IT HAD A CAPITAL OF S5,@,9@.
The Collapse Ia Due to the Inability to
Float Its Securities OH the
Open Market.
II Controlled Mills In Wisconsin,
Minnesota, New York and New
Jcrsey-The Company Can Meet
None of It's Obligations.

q Milwaukee, Wis, FEB. I'll lie
United States Milling Co., generally
known as the -four trust, went to
pieces Saturday afternoon, but the
fact did not become known until
Monday when Judge Jenkins, in pro-
ceedings anciliary 10 the United
States court Of New Jersey, appointed
three receivers for the company, two
of whom are now in charge Of the
property.
Tne receivers are Daniel Thomas.
Of New York; Charles i. Kimball, OF
Summit, y. j., and Albert c. LorinS,
of Minneapolis.
/ The collapse Of the company was
due, it is said, to inability to float its
securities on the open market.
George VIM. Baliou, the stockhold-
er, who instituted suit in which the
receivers were appointed, made the
following statement concerning the
causes leading to the failure of the
company in the complaint:
"In the organization of the. COM
pany," says Mr.. BallOu, "it had been
hoped that sufficient means would
have been provided for the purchase
of the property required by the com
pany and to supply sufficient work
Ing capital to carry on its business
by the sale Of its first mOrtg gage col
lateral gold bonds, but because of the
tight money market and depression
in industrial securities, the company
was unable to carry out the plan and
was obliged to resort to borrowing
money on its collateral trust bonds
and otherwise urged to secure a tenn
porary loan by its issue OF so-callcd
trust bonds and further, by the fail
ure of this plan, by borrowing in open
market. The money so borrowed con-
stitutes the floating Indebtedness
which amounts to S1,095,50s, of which
S144,365 is due and $304,350 is on de-
mand loans"
The United States Milling company
was formed with a capital stock OF
100000 on April %, 1899, having
secured control of the following mill
ing property:
In Milwaukee-The Daisy and Faist-
Kraus mills.
In Superior-Tne Lake Superior, the
Anchor and the Listmann mills.
In Minneapolis-Th Excelsior, the
Standard and St. Anthony mills, to-
gether with 95 per cent. of the capital
stock of the Northwestern Consol-
idated Milling Co., which operates and
owns five big flour mills.
In Duuth-The Imperial and the
Constructed Terminal elevators.
In New York State-The Syracuse
mills, the Baldwinsville mills the Ur-
ban mills.
In New Jersey-Ninety-fve per cent.
of the IIeckerJones- Jewell Milling
Co., which operates and owns four
large mills.
Mondays proceedings will have to
be instituted in every circuit where
the company owns property. The
bond fixed by the New Jersey is $780,
900 in each case. Judge jenkins re-
ouires them to give an additional
bond Of $25, 900 each. While the orig
inal suit is in New Jersey, the greatest
litigation will probably be in Wiscon-
sin, and the majority of the COM
pany's property are in this state.
Mr.. Ballou is n resident of New
Jersey, but his bill filed in the United
States court in Milwaukee goes into
greater detail. Mr.. Ballou says he has
made careful investigation OF the
affairs of the company and is satisfied
that it is wholly insolvent.
The company, Mr.. Ballou sets FORTH
will be unable to meet any of its OBJ
legations as they mature. Its cash IN
the bank is but $1,000, and it has no
bills or accounts receivable, the pro-
ceeds of which would be sufficient TO
meet the matured and the maturing
obligations.