The labor world. [volume] (Duluth, Minn.) 1896-current, 1900-08-11
Plan ! WOULD |. FAIL
TO : OPERATE MILLS UNDER ONE
MANAGEMENT.
The Northwestern Miller Dec1u res
That 1T Can Never be Made to
Succeetl-Leaslns to Local Man.
ayers With Full Power Might be
Able to Satisfy Bond HOlders-Can-
not Operate on Trust Lines.

Milling companys proposed organiza-
ton which will be read with interest
by head of the lakes people. The
paper holds to the view that the mills
can never be successfully operated un-
der a single management with head
quarters in the east, and that they
should be turned back under lease or
on basis of profit sharing and oper-
ated Independently. The article is as
follows:
Again the cry "New lamps for old"
is heard in the market-place, and hold
ers of the securities of the United
States Flour Milling company are in
vited to step up and make an exchange
of the bonds and stocks they now hold
for others which are offered them un-
der the amended reorganization
scheme. Of course a considerable cash
bonus must accompany the old security
before it can be exchanged. Elsewhere
in this issue will be found details of
the amended plan to reorganize as set
forth by Mr.. George William BallOu,
secretary of the reorganization COM
mittee. Anyone who is interested in
document can take a day off and try
to play on them. He will probably
emerge from his exercise with a mud
died brain and general impression
that, what with bonds, common stock,
preferred stock, Indebtedness, interest,
sinking fund and other varieties, styles
and forms of financial obligation, the
condition Of affairs of the company is
extremely involved; and therein he will
not be far wrong. He will also prob
ably conclude that the reorganization
committee has a very large undertake
ing on it's hands, with the outcome
very much in doubt.
Everyone interested directly or indi-
rectly is anxious to see the mills be-
longing to the company started up on
satisfactory basis. There is no doubt
that many of these plants are SuScep-
tible of most successful operation, if
properly handled; but there is no room
in the economy of modern milling for
promoters and promoters ways. Flour
making cannot be successfully done by
trust methods, and yet unless these
methods are followed and large lines of
securities are floated, there is nothing
in this deal whatever for those pa
tient and sanguine. gentlemen who
have so long followed it in the hope of
realizing something out of the transact
ton. These gentlemen still evidently
think that they can make the ghost
walk and they are certainly entitled
to try. They are having it and the
fn HI
demonstrate whether it will be sue
cess or failure. Mr.. :Ballou has an
nounced that this plan is the best pos
sible solution of the situation, but,
|witnout seeking to disparage tin the
least: for we have no desire to criti-
else any reasonable plan to bring or
der out of chaos and set the rolls hum
ming in the company's mills, the OBJ
lection to the scheme which we think
will ultimately prove it's undoing, is
the unmistakable predominance of Bal
lou in it. The various proposals under
the amended plan are distinctly Bal
lou, if we may coin word which
stands for financial wind rather than 4
solid basis of practical achievement
based on sober capitalization and rea
earning power.
The plain truth is that the plan even
if adopted would merely postpone the
evil day. 1t contemplates making the
horses which pull drag the whole loa6
while the dead horses still stand in the
shafts to be dragged along with it. The
struggle which has been made tt
achieve the impossible was a pluckS
one, but none the less it was, and mus
ever be, useless. There is one way anC
one way only to recognize" the United
States Flour Milling company, an6
sooner or later the owners of the prop.
erty must come to it. The sooner it is
done the less time and money will be
wasted. It will be necessary to rid the
concern Of it's Ballous, Shirks, ant
other elements which are vainly trying
to carry out the old, original scheme ir
a modified form. This done, each plan
should stand on it's merits. The deaC
wood and debris should be cut away
Mills which are profitable should bt
turned over to the absolute and indie
pendent control of the managers who
have operated them for years and wh(
thoroughly understand them. Thes'
managers could work under lease or {
share of profits. They could readil.
secure all the capital necessary to ru1
their plants. The useless mills, thos'
which cannot be handled except at :
loss, should be permanently shut dowl
and as soon as possible sold. It is pos
sible that some Of them under indie
pendent ownership could be made t.
pay.
This plan which means simply dis
Indignation into it's original cOmpo
: nent parts, necessarily would entail ;
heavy loss. but it may as we'll be me
now as later. The scheme to operat
under one management, with head
quarters in New York, a large numbe
Of important western mills is an abso
Lutte and unqualified failure and Cal
never be made to succeed, no matte
how we'll the reorganization committe
Goes it's work. 1t is vitality and funda
mentally wrong, Such mills can on1!
run successfully when under separat
and reasonably competitive manage
ment. BY remaining the owner o
these mills, and leasing them to loca
managers with full control, the Onite'
States FIGURING Milling company woult
undoubtedly be able to fully satisfy 1T
bondhOlders and in time there Nigh
even be something for holders Of stock