Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-02-27

me PRESENT movement u tart OF
the Plan Aor a Reorganization of
the Big Combine.
MILWAUKEE,, February 26.-Judge
Jenkins, in the United States Court,
to-day appointed a receiver for tho
United States Milling Company, other
wise known as the Flour Trust.
The United States Milling Company was
formed with capital stock of s25, 900
April q, 1889, having secured control Of the
following Touring mill property:
In Milwaukee-The Daisy and Falst-
Kraus mills
In Superior-The Lake Superior, the An
Choir and the IAstmann mills.
In West Superior-The' Grand Republic.
the Freeman and the Minkota mills
In Minneapois-The Excelsior, the Stand
ard and St. Anthony mills. with ninety-five
per cent. of the capital stock OF the North
western Consolidated Milling Company.
which operates and owns five big flour
mills.
In Duluth-The Imperial and the Con-
structed Terminal Elevators.
In New York State-The Syracuse mills.
the Baldwinsville mills, the Urban mill.
In New Jersey--Ninety-flv per cent. OF
the Hecker-J ones-Jewell Milling Company,
who operates and owns four large mills.
Proceedings similar to those of to-day
will have to be instituted IN every circuit
where the company owns property. The
bond fixed by the New Jersey court is
100000 in each case. Judge Jenkins re-
quires them to give an additional bond OF
$4,000 each. While the original suit is in
New Jersey, the greatest litigation will
probably be in Wisconsin as the majority
of the companys property is in that state.
The company, Mr.. Ballou's bill sets forth.
will be unable to meet any Of its obliga-
tons as they mature. Its 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 ma
turing obligations.
George Wilson Ballou. of New Jersey,
the stockholoer who instituted the suit in
which the receivers were appointed, made
the following statement concerning the
causes leading to the failure of the COM
pany in the complaint:
In the organization of the company II
had been hoped that sufficient means would
be provided for the purchase of the prop
erty required by the company and to supply
sufficient working capital to carry on its
business by the sale of it's first mortgage
collateral gold bonds, but because of the
tight money market and the depression in
industrial securities. the company was UNI
able to carry out the plan and was obliged
to resort to borrowing money on its colIat-
eral trust bonds and otherwise urged to
secure temporary loan by it's issue OF So
called trust bonds and further by the
failure of this plan, by borrowing in the
open market. The money so borrowed
constitutes the floating indebtedness which
amounts to $1,095, 50S.0S, OF which $14, 2G5
is due and s394.350 is on demand loans"
NEW YORK, February 26.-When the
news reached this city that a receiver for
the United States Milling Company had
been appointed in Milwaukee, Thomas A.
Mcintyre, of the firm Of Mcintyre q
Wardwell, produce exchange brokers. and
said TO be at the head OF the so-called
Flour Trust" was not at his office. hav-
ing gone out Of town. George Wilson Bal
lou, secretary of the reorganization COM
mittee, stated that Gen. Samuel Thomas,
who was chairman OF the Reorganization
committee of the concern, had been ap-
pointed as one of the receivers and the
whole proceeding was consented TO by and
as part of the scheme of the committee.
The u. S. Milling Co was organized last
May with sixteen mills in the principal
milling cities OF the country The organi-
zation plan did not provide great deal of
working capital and the concern had had
trouble TO get capital to work with. The
situation as 10 the need of ready money
was made more serious by the acquiring.
by purchase, of the mills OF the Northwest
ern Company in Minnesota.
Last year the bonds of the company took
a tumble and It was found that the COM
pany could not go on under its then man
agement To add TO the complexities the
Hecker-Jones-Jeweil stockholders who had
come into the consolidation some time ago,
brought a suit looking to withdrawal from
the consolidation. On January ~. re-or-
ganizatfon committee started TO work TO
re-organize the company and put it's busi-
ness on a better basis. The members OF
this committee are:
Gen Samuel Thomas Edwin Gould, ].
Edward Simmons Warner Van Norden.
Brayton Ives, VIM. Lanman Bell and Tshos.
A. Mcintyre. with George William Ballou
as secretary.
To-day. February %, was set as the limit
date for the deposit Of stock for the re-
organization.
This appointment Of receiver" said
Mr.. Baliou, was asked for by a stock
holder and was forced upon US by creditors,
but # has been carried through with the
consent Of the committee.
1T was inevitable. and the best thing
to do under the circumstances. Just about
this time large number OF obligations
are coming due. especially in the west.
and this receiversh.p was the only soIu-
ton Of the problem"
A meeting Of the reorganization commit
tee was held this afternoon. but the action
taken BY II could not be learned.
MINNEAPOLIS. MINI. February D.
A. c. Lor1ng. formerly vice president and
general western manager for the United
States Milling Company, and one Of the
receivers. said to-day that the receiver
ship was n furtherance Of the re-organiza-
ton plan. Already he said the re-organi-
cation committee was at work with most
encouraging prospects. The same receiy-
ers named in Wisconsin and New Jersey
have been appointed for Minnesota by
Judge Lochren.
The Weather.
Mr. c. Scnnepf, the Opera House drug