The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-02-27

Milwaukee. Wis, Feb. 26.-The
United States Milling company, gen
orally known as the Flour trust, col
lapsed Saturday afternoon, but the
fact did not become known until to
day, when Judge jenkins. in proceed
ings anCillary TO the United States
court Of New Jersey, appointed three
receivers for the company, two Of
Wmom are now in charge Of the prop
erty. The receivers are Daniel Thomas
Of New York, Charles +. KimbaH Of
Summit n. J., and Albert c. Loring
of Minneapolis.
The collapse Of the company was
due, it is said, to inability to- float its
securities on the open market. George
William Ballout of New Jersey, the
stakeholder who Institutes the suit in
which the receivers are appointed,
makes the following statement con-
corning the causes leading to the fall
ure Of the company in the complaint:
In the organization Of the company
II had been hoped that sufficient means
would be provided for the purchase Of
the property required by the company
and to supply sufficient working capital
To carry on its business by the sale of
its first mortgage collateral gold bonds,
and the depression in industrial secur-
tiles the company was unable to carry
out the plan, and was obliged to re-
sort to borrowing money on it's col
lateral trust bonds and otherwise to
secure a temporary loan by its issue Of
s1-called trust bonds, and further by
the failure of this plan by borrowing
in open market The money 80 Dor
rowed constitutes the floating indebt-
eduess, which amounts ia 81 095, sos. 0S,
Of which Sl44365 is due and 1884, $50 is
on demand loans"
Property of the Trust.
The United States Milling. company
was sormed with a capital stock of
S25,000.000 On April 27, 1899, having Sc
cured control of the following flour
milling property:
In Milwaukee. the Daisy and Faist-
kraU5 mills. In Superior, the Lake
Superior, the Anchor and the List
mann mills. In West Superior, the
Grand Republic, the Freeman and the
Minkota mills. Ii Minneapolis. the
EXcelaiOr, the Standard and St An
thOny mills. together with 95 per
cent of the capital stock of the North
V estern Consolidated Milling company,
which operates and owns five big flour
mills. In Duluth. the Imperial and
Constructed Terminal elevators. IN
New York state. the Syracuse mills,
the BaldwinSville mill. the Urban mill.
In New Jersey, 50 per cent Of the
HeCker-Jone5 Milling company, which
owns and operates four large mills.
Today's proceedings viii have been
instituted in every circuit where the
company owns property. The bond fixed
by the New Jersey court is 500. 900 in
each case. Judge Jenkins requires
them To give an additional bond of
$4,000 each.
While the original suit is in New Jer-
=ey. the greatest litigation win prOba-
bly, be in Wisconsin, as Jne majority Of
the company's properties are in this
state
Mr.. Ballou says he has made care
| full investigation of the affairs Of the
company ana is satisfied that it is
! wholly inSolvent The company, Mr..
/ BallOU sets forth, viii be unable to
meet any Of its obligations as they
mature. It's cash in the bank is but
$1,000, and It has no bills or accounts
/ receivable. the proceeds Of which would
be sufficient to meet the matured and
! maturing obligations.
How Stock Is Divided.
The capital of the company is di-
vided into go, 600 shares. Of the value
of 500 each. Mr.. BallOu owns $50. 600
worth of the stock On May 1, 1899,
! the company mortgaged all of its prop
critics 10 the Central Trust company of
New York to secure an issue of S15.-
I 100000 8 Per cent gold bonds, of which
| S5.G1A0o0 have been flOated. On Nov.
10, 1899 the company mOTtgaged $4,000
of the gold bonds and 9.OG0 shares of
the preferred stock Of the Northwest
ern Consolidated Milling company to
/ secure an issuance of S3.O0O.000 trust
/ bonds of which S1,O77. 900 have been
fl0ated on the market, the total amount
of bonds being S7.S01 600.
On top OF these the company has out
standing S1,500,000 of its first mortgage
| bonds pledged as collateral. and 81 1885,
coo deposited with the Central Trust
company, to De exchanged for an equal
amount of the JOnes-Jew
company. and 1891 900 pledged as fur
Their collateral.
In the order appointing the receiv-
ers. they are directed TO proceed with
the operate of such of the mills as
have not been shut down, and they are
required TO proceed to carry out con-
I tracts on hand An injunction is issued
/ restraining all parties from interfering
with the receivers or bringing suiI
Claims must be filed in the receiver
ship proceedings.
PONDC TOOR 4 TTMgTF