The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1900-03-01
United States Flour Milling Com
pany in the Hands Of Three
II Receivers.
The Crash Came Saturday, but
the Announcement Was
Delayed.
Most Of the Mills of the Corpora
ton in Wisconsin---Some in
Minneapolis.

MILWAUKEE, Feb. 81. The United
States milling combine, generally known
as the -four trust, went to pieces Saturday
afternoon, but the fact did not become
known until Judge Jenkins, in proceed
ings ancillary to the United Statescourt
OF New Jersey, appointed three receiv-
ers for the company, two Of whom are
now in charge Of the property. The re-
ceivers are Daniel Thomas of New
York, Charles E. Kimball of Summit,
N. j., and Albert @. Loring of Mime.
apolis. M...
The collapse of the company is due to
the inability of the company to float it's
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 concerning the
causes leading to the failure of the COM
pany in the complaint:
"The trouble in the organization of
the company" says aMr. Ballou, "was
that sufficient means would be provided
for the property required by the COM
pany and to supply sufficient working
capital to carry on it's business, by the
sale of its first mortgage collateral gold
bonds, but because of the tight money
market and the depression in industrial
securities, the company was unable to
carry out the plan and Wa obliged to
resort to borrowing money on it's collat-
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 open market. Money so borrowed
constitutes the floating indebtedness,
which amounts to $1,095, 508.08, of
which S144, 1866 is due and $780,, $50 is on
demand loans.
The Mills Affected.
The United States Milling company
was formed with capital stock of $685.
600, 900, ON April 81, 1899, having Sc
cured control of the following -four
milling properties: g.. ....
In Milwaukee-The Daisy and Faist-
Kraus Mills. ~, ILL.,. .1
In Superior-The Lake Superior, the
Anchor and the Listmann mills.
In West Superior-The Grand Repub-
lie, the Freeman, and the Minkota
mills. er s5 5l
In, Minneapohs-The Excelsior, the
Standard and st. Anthony mills. to-.
gether with 90 per cent Of the capital
stock Of the Northwestern Consolidated
Milling company, which operates and
owns five big -four mills III ..
In Duluth The Imperial and the Con-
structed Terminal elevators. r. nH.t"
In New York state The Syracuse
mills, the Baldwinsyille mill, the Urban
mill. ... -,
In New Ninety five per cent
of the Hecker- Jones-Je Milling COM
pany, which operates and owns four
large mills. -. ~" .,..
Similar proceedings win have to be
instituted in every circuit where the
company owns property. The bond
fixed by the New Jersey court is $780,
600 in each case Judge Jenkins re-
quires them to give an additional bond
Of $3.50 each. While the original
suit is in New Jersey, the greatest iti-
cation will probably be in Wisconsin, as
the majority Of the company's property
is in this state. ~
Satisfied It Ii Wholly Insolvent.
Mr.. Ballou is a resident of New Jer-
sey, 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 af-
fairs 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 obi
cations as they mature. Its cash in the
bank is but 81 900 and it has no bills or
accounts receivable, the proceeds of
which would be sufficient to meet the
matured and maturing obligations.
In the order appointing the receivers,
they are directed to proceed with the
operation Of such of the mills as have
not been shut down and they are re-
quired to proceed to carry out contracts
on hand. An injunction is issued re-
straining all parties from interfering
with the receivers or from bringing suit.
All creditors must file their claims in
the receivership proceeding. The off,
GERS, directors agents Of the company are
commanded to surrender the property to
the receivers forthwith. The receivers
are ordered to file an inventory within
60 days and creditors in Wisconsin have
until Jan. !, 1902, in which to file claims.