The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-02-27
FLOUR trust BROKEN
Federal c OuFt at Milwaukee
Appt ints Receivers.
NO SALE FOR SECURITIES
Hence no Cash in Its Treasury
RI organization.

nOur IfUSIr Q JlldpSeu odlu4udy o-tCAIOOH'
but the fa-e did not become known until
today. whels Judge jenkins in proceedings
anciuary to, the United States court of
New Jersey, appointed three receivers for
the company two of whom are now in
charge of the, property. The receivers are
Daniel ThomR of New York, Charles E.
Kimbau of SG nmit N. J., and Albert C.
Loring of Mn neapolis. The collapse of
the company vas due, it is said, to in
ability to float it's securities on the open
market.
George B. Ba -llou, the stockholder who
instituted suit II ! which the receivers were
appointed make the following statement
concerning the ,auses leading to the fail
ure of the CON pany, in the complaint:
THAT in the rganiza5ion Of the COM
pany,'' says Nh BallQ,u, 9TH ad been
hoped that sufn cient means would be
provided for the purchase Of the property
required by the company and to supply
sufficient wo rhing capitaI to carry on its
business by he sale 'of its first mortgage
collateral gol1{ bonds. but because of the
tight money n hrket and the depression in
industrial secul titles. the company was un-
able to carry ut the plan and was oblig-
ed to resort to borrowing money on its
collateral trust b UH1s and otherwise urged
10 secure a TEN vo,rary loan by its issue
of so-caned trus tsbonds and further by
the failure of this plan, by borrowing in
an open market. The money so borrowed
constitutes the floating Indebtedness.
which amounts to $1O95. 5e}.OS. of which
sl44. 865 is due and 1894 $50 is on demand
bonds"
The United States Milling company was
formed with a capt. Al sto ok of $25, 900, 900
on April o. 1894, havir " So cured control Of
the following -four N fllin property: In
Milwaukee, the Daisy nd Paist-Kraus
mills; in Superior, the' Lake Superior,
Anchor and the Lstmstn n mills; in Min
neapolis, the Excelsior. u re Standard and
st. Anthony mills, togest Ter with 90 per
cent of the capital stod ofthe North
western Consolidated NJ ling company,
which operates and OWN five big flour
mills; in Duluth. the Inn Derial and the
consolidated Terminal ele vators; in New
York state the Syracuse mills, the Bald
winviIIe mills, the Urban mill; in New
>
Jewell Milling company, which operates
and owns four large mills.
Today's proceedings viii be instituted in
every circuit court wher2 the company
own property. The bond fixed by the
New Jersey court is S100Od) in each case
Judge Jenkins requires them to give an
additional bond of $4,000 zach. While the
original suit is in New Jer sey the great
est litigation will probably be in Wiscon-
sin. as the majority Of the companys
property is in this state.
Mr. Ballou is a resident of New Jersey, |
hut his bill filed in the United States |
court in Milwaukee. goes into greater de- |
tail. Mr.. Ballou says he has made |
careful investigation. of the agaSrs of the |
company and is satisfied that it is wholly !
insoIvent. The company, Mr.. Ballou |
setsf orth,w i'll 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 price Of |
which would be sufficient to meet the ma |
turing obligations.
Minneapolis, Mimi, Feb. ga. c. !
Boring, formerly vice president and gen.
eral western manager for the United |
States Milling company, and one of the |
receivers, said today that the receivership |
was in furtherance of the reorganization |
plan. Already, ne says, the re-organiza- |
ton committee was at work, with most |
encoura ging prospects. The J,me receiv-
ers named in Wisconsin and New Jersey |
have been appointed for Minnesota by1
Judge Lechren.
New York, Feb. 26-When the news /
reached this city that receiver had been /
appointed for the United States Milling |
company at Milwaukee. Thomas \. Nc |
Intyre, said to be at the head OF the con /
Germ, was not in his Office. George VIII /
liam Bauou. secretary of the re-organiza- /
ton committee, stated that General !
Samuel Thomas, who was chairman Of /
the reorganization committee Of the con-
Germ, had been appointed as one of the |
receivers. and the whole proceeding was |
consented to and was part of the /
schee Of the committee
The United States Milling company was
organized last May with sixteen mills in /
the principal milling cities ofthe country. /
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 (
aEement. To add to the complexities the /
Hecker-Jones-Jeweu company stockhold- /
ers, who had come into the consolidation +
some time ago. brought a suit looking to
withdrawal. on January % q reorsaniza-
ton committee started TO work 70 reor-
ganize the company. The members Of /