The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1900-09-08
BIG CONCERN FAILS.
The Affairs of the United Milk Producers
Association in the Hands of Re-
ceivers-Hope to Tide Over
Difficulties and Con-
tinue Business.


The United Milk Producers Association
whose extensive plant is located on North ave
nue., Baltimore made an assignment on Tues
day and the court appointed Mr.. William B
Crowther, president of the association, and Mr.
Theodore Wilcox, cashier of the Old TowI
Bank, receivers, and their bond was fixed a
500, 900. The receivership was on the petition
of William B. D. Penniman and Arthur Lex
Browne, trading as Penniman & Browne, anC
the bill was filed by Messrs. George D. Pen
niman and Samuel X. Smith, attorneys. The
answer of the defendant company, filed by
Messrs. Willis q Homer, admitted the allega
tons in the bill, so far as the same were mate
rial to the granting of the relief prayed and
consented to the appointment of the receivers
Messrs. Penniman q Browne, who are
analytical chemists, were employed by the as
ISOLATION to take charge of the laboratory at a
yearly salary of 81 800 each, and Mr.. Penni-
man was further employed as general superin-
tendent of the plant at $1,000 a year for the
purpose of introducing such alterations and
changes in the internal management as his
knowledge as a scientific man would enable
him TO suggest.
They further recite that the association is
the owner of large and valuable plant on
North avenue, between Charles and st. Paul
streets in which it has placed machinery and
equipment costing largely in excess of $50, 900 4;
that there is a promissory note for $1,000, Sc
cured by a lien upon this property and plant,
due and payable on Tuesday, and that the
company has not the available cash to meet it.
The petition says that one of the most valua-
BILE assets of the association is its good will.
The promissory note referred to is held by
the American Ice Company. The attorneys
for the association said that the American Ice
Company holds other notes for one and two
years against the association aggregating $42,
500. The attorneys said they believe if the
business is continued under direction of the
Court it can meet its obligations that the as
ISOLATION has assets of about 100000 but ii
closed out at once the property will have to be
sold at sacrifice.
Mr.. William B. Crowther, one of the re-
ceivers and president of the association, speak
ing of the trouble, said: I'VE hope to reorgan-
ize the company in about 60 days and have it
in far better shape than ever. Our work has
all along been hampered by lack of capital
but in our limited experience we have become
convinced that such an organization can be
made of great value to the farmer. The COM
pany was capitalized at $250,0O0. Only about
$500 of this was subscribed, and the SUBJ
scriptions were not all paid. The main trou-
BILE was that we were compelled to begin bust
ness before we were ready. We did not have
enough money together, were not well enough
organized and had no plant.
ave began at first selling to the retailers,
but soon found that this was not satisfactory.
We then spent about $4,000 buying up the
principal milk routes and began delivering
milk ourselves. Our first quarters, on South
street, were not large enough to permit us
working up our surplus stock into by-pro-
ducts, such as butter, ice-cream and curd.
We decided to secure this building on North
avenue, the price being SAL 900.
Zone of the most complete plants in the
country has been established here, and our
products have acquired an excellent reputa-
ton. In few weeks more we would have
been out of the woods and our business on
ftrI hoe 0nr
would not hold off and we were obliged to re-
sort to a receivership in order to protect the
property.
1--WE began by paying 16 and IS cents gal
Ion for milk. according to quality, but recent
ly we have been paving upon the basis Of the
from 133 to 193 cents gallon, according to
quality. We have been embarrassed by the
prompt demands of the producers for their
money. When they formerly sold to dealers
and city diaries they were content to let &C.
counts run almost any time, and, in addition,
many lost considerable money in bad &C.
counts. That was one reason why this associ-
alton was started. We have always endeavor-
ed to pay promptly, but at this season of the
year collections are difficult and slow"
The members of the association, nearly 700
in number, will be called together in about
two weeks to consider plans for the future.
Perhaps more than two-thirds of these are
Baltimore county producers. The association
has been handling, it is claimed, nearly 12.-
600 gallons of milk daily.
FARMERS WANT TO BE REPRESENTED.
On Wednesday Messrs. Grain & Hershey, at
torneys for a number of Carroll county pro-
ducers, filed petition asking for the appoint
ment of co-receiver of the association to look
after their interests, and suggested Mr.. j. E.
Baseman for the place. The petitioners allege
that they are large stockholders in the corpo.
ration, Baseman holding $50 shares, etc., and
that in addition to this they are also large cred
association. They aver in the petition that
the receivers appointed do not fairly and fully
represent all interests involved; that their Sc
lection was without their knowledge and the
petitioners charge that the interests which de-
cided upon a receivership and suggested the
gentlemen appointed are antagonistic to those
Of the petitioners. They further recite that as
the character of the business of the association
is such that only practical dairymen can be
familiar with it, they desire that some repre-
sentative of the dairymen and farmers should
be appointed as co-receiver. A date for hear
ing was not fixed by the court.