El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-03-01
FLOUR TRUST
FAILURE
Collapse Of the Gigantic Com
bine Of MiIlerS
RECEIVERS IN CHARGE
The Concerns Promoters Allege
That They We're Unable To
Float the Securities.

MILWAUKEE, Wis, Feb. 26-The
United States Milling company, gen.
orally known as the -four trust, went
to pieces Saturday afternoon, but the
fact did not become known until today
when Judge jenkins in proceedings
auxiliary 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 collapse of the company was
due, it is said, to inability to float it's
securities on the open market.
George William Ballou, the stock
holder who instituted the suit in which
the receivers were appointed, made
the following statement concerning the
cause leading to the failure of the
company to the complaint.
.'In the organization of the COM
psny," says Mr.. Ballou, SIT had been
hoped that sufficient means would be
provided for the purchase of the prop
erty required by the company and to
supply sufficient working capital to
carry on It's business by the sale of its
fret mortgage collateral gold bonds,
but because of tight money market and
depression in the industrial securities
the company was unable to carry out
the plan and was obliged to resort to
borrowing money on its collateral
trust bonds and otherwise urged to
secure q 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 Dor
rowed Constitutes the floating indebted
ness which amounts TO 81. O95, 5OS, of
which Sl44, 1865 is due and Ss94, $50 is on
demand.
The United States Milling company
q. r{sh Ill
QUO, 900 on April 81, 1899. having secur.
ed control of the extensive -four mill
ing property in West Superior, Min
nespolis, Duluth, New York slate and
New Jersey. While the original suit
is in New Jersey the greatest litiga-
ton will probably be in Wisconsin as
the majority of the cOmpany's proper
ty is in this state.
The company, Mr.. Ballou sets forth,
will be unable to meet any of its obli-
cations as they mature. Its cash in
the bank is but $1,000 and it has no
bills or accounts receivable, the pro-
ceeds of which would be sufficient to
meet the matured and maturing obi
cations.
The quick assets of the other mills,
Mr.. BailOu sets forth, Go not exceed
$3.50, 600 and consist chiefly Of flour,
bags and stock on hand: of which but a
small portion could be converted into
cash without great sacrifice.
The capital of the company is divid-
| ed INTO 250 900 shares, OF the par value
of 500 each. Mr.. Ballou owns
$50, coo worth of the stock. On May L,
1899, the company mortgaged all of its
| properties to the Central Trust COM
pany of New York to secure an Issue
of SIS, 600, 900 in per cen. gold bond 5, of
which Sc, O04 900 have been fl ale1. Ga
| November Is, 1899. the company mort
gagged $500 of the gold bonds and
1000 shares of the Pr eferred stock OF
the North western Consolida ted Milling
Co. to secure an issuance Of 50 ,0OI ,OOU
| trust bonds, of which BLOT, 600 are
now on the market, the total amour
| of the bonds foated being 81 ,OSl 600.
On top of these the compan hes out
standing 81 500, 900 of it's first mortgage
| bonds pledged rs collateral and 81, 1885,
600 deposited with the Central Tru
company, to be exchanged for an equal
amount OF the Hecker-Jones-Jewel
company and 1891 900 pledged So fur
| Their collateral.
In the order appointing the re-
ceivers they are directed to proceed
| with the operation of such of the mills
| as have not been shut down and they
are required to proceed to carry out
contracts on hand. An in unction is
| issued restraining all parties from in
| terfering with the receivers or from
bringing suits. All creditors must