The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-27


Large Block of Milling Trust
StOck-Asserted That Receiver
ship VIII Enable Committee to
Save Property-ActiOn Taken in
Minnesota.
Judge Lochren, sitting in chambers In
Minneapolis, yesterday appointed re-
ceivers for the property of the United
States Flour Milling company. The re-
ceivers were appointed at the request OF
Davis, Kellogg & Severance, attorneys for
George w Ballou, a stockholder, and are
the same as were appointed Saturday by
the chancery court of New Jersey: Daniel
Thomas, of New York; A. c. Loring, or
Minneapolis, and Charles E. Kimbal, OF
Summit, New Jersey, as receivers OF all
Mr.. Loring, seen at his Office, stated
that the property of the United States
Flour Milling company in this state con-
sists of the Duluth Imperial mill at Du-
luth, the ST. Anthony, Standard and Ex-
celsior mills in Minneapolis. He further
stated that reorganization committee
of the United States Flour Milling COM
pany has been formed, consisting Of
6anu6I 10OIlaS, EUWl0 OOuluJ d. L. SiAAA
MONS president Of the Fourth National
Bank of New York; Warden Van Orden,
president of the National Bank OF
America; Brayton Ives, president of the
Metropolitan Trust company; Laman Bull
and Thomas A. Mcintyre. The applica-
tion for receivers was in conformity with
the wishes Of the reorganization commit
tee, and made for the purpose of further
ing the reorganization. The business OF
the company will be continued as before.
MILWAUKEE. Wis, Feb. 26.-The
United States milling combine, generally
known as the flour trust, went to pieces
Saturday afternoon, but the fact did not
become known until today, when Judge
jenkins, in proceedings ancillary to the
United States court of New York, ap-
pointed three receivers for the company,
= two of whom are now in charge of the
property The receivers are Daniel
Thomas, of New York; Charles E. KIM
bell, of Summit, N j., and Albert C..
Loring, of Minneapolis.
The collapse of the company is due to
the inability of the company to float its
securities on the open market.
w
who institutes the suit in which the re-
ceivers are appointed, makes the follow
Ing statement concerning the causes lead
ing to the failure of the company in
the complaint:
''That in the organization Of the COM
pany," says Mr.. Ballou, sufficient means
would be provided for the property re-
quired by the company to supply work.
ing capital to carry on its business by the
sale of It's 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
resort to borrowing money on It's COL
lateral 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. Money SO borrowed con-
stitutes the floating Indebtedness, which
amounts to 81, ,095, $685. .OS, of which $144,365 is
due and 1894, $50 is on demand loans" "
The United States Milling company was
formed with a capital stock of $25, ,00t
on April q, 1899, having secured control
of the following flour milling properties
In Milwaukee, the Daisy and Faist-kraus
mills, III PupSTlOt, InS bdhS OOPSi loA, Lily
Anchor and the Listmann mills; in West
Superior, the Grand Republic, the Free
man and the Minkota mills; in Mime
apolis, the Excelsior, the Standard and
ST. Anthony mills, together with So pei
cent Of the capital stock of the North
western Consolidated Milling company
which operates and owns five big flour
mills; in Duluth, the Imperial and the
Constructed Terminal elevators; in New
York state, the Syracue mills, the Bald
winsville mill and the Urban mill; in New
Jersey, 95 per cent of the Hecker-Jones-
Jewell Milling company, which operates
and owns four large mills.
MANY SUITS TO FOLLOW.
Today's proceedings will have to be in
stituted In every circuit where the COM
pany owns property. The bond fixed by
the New Jersey court is 100000 in each
case. Judge jenkins requires them tC
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
eompany's property is in this state.
Mr. Ballou is a resident of New Jersey
but his bill filed in the United States
court in Milwaukee goes into greater de.
tail Mr. Ballou says he has made a care.
full investigation of the affairs of the
company, and is satisfied that 1t is wholly
forth, will be unable to meet any of its
obligations as they mature It's cash II
the bank is but 81 900, and it has no bills
or accounts receivable the proceeds oi
which would be sufficient to meet the
matured and maturing obligations.
Three of the -four mills in Minneapolis
according to the complaint, have beer
leased to the Northwestern Milling com
pany, while the mills in Superior, Wes
Superior and Duluth are shut down anG
have been for some time. The quick
assets of the other mills, Mr.. Ballou set:
forth, do not exceed $3.50, 900, and consis
chiefly of flour, bags and stock on hand
of which but small portion could bt
converted into cash without great sacri
flee Furthermore, an attempt to sell a
this time, Mr. Ballou says, would resul
in the shutting down of all of the Other
mills.
COMPANY'S CAPITAL.
The capital of the company is divided
into 250000 shares of the value of $10t
each. Mr.. Ballou owns $4,000 worth OF
stock On May l, 1899, the company
mortgaged all of Its properties to the
Central Trust Company Of New York t.
secure an issue Of SIS, 900 Of per cen
gold bonds, of which s6,0ol,090 have beer
fioated On Nov. 16, 1899, the 1compan,
mortgaged $75o,00O of the gold, bonds anc
Northwestern Consolidated Milling com
pany to secure an issuance of s., 900, ,oO
trust bonds, of which s1,077 600 have beer
placed on the market, the total amount