Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1900-03-02
FAILURE OF FLOUR TRUST.
Receivers Are Appointed for the
United States Milling Combine
Causes of the Collapse.

Milwaukee, Wis, Feb. 27.-The flour
mill trust has collapsed. With less
than $1,000 in cash on hand and with
liabilities of nearly $15,000,o00, the.
United States Milling company, the big
combine that was formed less than a
year ago, went into the hands of receiv-
ers. Judge James G. jenkins appointed
as receivers Daniel Thomas, of New
York; Albert c. Loring, of Minneapolis,
and Charles l.. Kimball, of Summit, n.
j. These appointments were original
ly made in New Jersey last Saturday,
but were suppressed until they could
be confirmed here by Judge Jenkins.
The receivers are required to file
bond of $25, 900 each, and are ordered
to take all inventory within 60 days
The creditors are given until Septem-'
ber in which to file their claims.
The collapse of the company is due;
to the inability of the company to;
float it's securities on the open mar
ket.
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
company: ta
"That in the organization OF the COM
pany," says Mr.. Ballou, at had been hoped
that sufficient means would be provided
for the purchase of the property required
by the company and to supply sufficient
working capital to carry on its 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 was obliged to re-
sort to borrowing money on its collateral
| trust bonds and otherwise urged to secure
a temporary loan by its issue of so-called
trust bonds and further, by the failure OF
this plan, by borrowing in open market.
The money so borrowed constitutes the
floating Indebtedness which amounts to
s1095 5Os0S, of which si44, 1865 is due and 1884,
$50 is on demand loans"
The United States Milling company
was formed with capital stock of
S25,OOO,000 on April 81, 1899, having Sc
cured control of the following flour
milling property:
In Milwaukee-The Daisy and Faist-
Kraus mills.
In Superior-The Lake Superior, the
Anchor and the Listmann mills
In West superior-The Grand Republic,
the Freeman and the Minkota mills.
In Minneapolis-The Excelsior, the
Standard and St. Anthony mills, together
with 90 per cent. of the capital stock OF
| the Northwestern 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-fve per cent. of
the Hecker-Jones-Jewell Milling company,
which operates and owns four large mills.
Mondays proceedings 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 requires
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 company's property
r is in this state.
Mr.. Ballou is a resident of New Jer
= sey, but his bill filed in the United
: States circuit court in Milwaukee goe:
. into greater detail. Mr.. Ballor
Y says he has made careful investiga
: tion of the affairs of the company, anG
v is satisfied that it is wholly insolvent
a The company, Mr.. Ballou sets forth
: will be unable to meet any of it's OBJ
: legations as they mature. Its cash il
I the bank is but $1,000, and it has NJ
4 bills or accounts receivable, the pro
). ceeds of which would be sufficient tt
a meet the matured and maturing oh
n legations.
= In the order appointing the receiv
ers they are directed to proceed will
: the operation of such of the mills a
q have not been shut down, and they ar,
= required to proceed to carry out con
!, tracts on hand. An injunction is ISSUED
q restraining all parties from interfer
ing with the receivers or from bringin,
suit. Ali creditors must file thei
4 claims in the receivership proceedings
The officers, directors and agents of tn
company are commanded to surrende
!, the property to the receivers forth
y with. The receivers are ordered to fill
. an inventory within 60 days. and cred
~ itors in Wisconsin have until Januar
A" 1, 1902, in which to file claims.
New York, Feb. 27.-General counse
for the receivers of the United State
8. Flour Milling company made the fol
,e lowing statement:
ID "The properties Of the United State
= Flour Milling company comprise thre
% mills in New York state, eight in Wiscon
n sin and five in Minnesota, beside the own
ir ership of over 95 per cent. of the HeckeI
h Jones-Jewell Milling company, ownin
~ four mills in New York and over 9S pc
Id cent of the Northwestern Consolidate
~ Milling company owning five mills /
n Minnesota. in addition about $l.500.O00
" merchandise and quick assets; all togett
TO er recently valued at Sl3. 900. The con
IS. pany was struggling against the disadvar
N tages of inadequate capital and fioatin
~ Indebtedness of more than s2,0000Oo, ha
u, been created. The pressure of this del
ne has compelled the company to suspend pay
m | ment."
"a Judge Lacombe, of the United State
circuit court in this city, confirmed q
receivers of the United States Miilin
company Gen. Samuel Thomas, Charlie
he r. Kimball and Albert C. Loring, VIII