The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1900-03-03
FLOUR TRUST IS BUSTED.
The United States Milling Co. Has
Been Placed In the Hands of
Receivers.
4 STOCKHOLDER INSTITUTED The SUIT.
The Tight Money Market and De-
precision in Industrial Securities
Interfered With the COmDRny's
Plans for Securely Financing the
Trust.

Milwaukee, Feb. 27.-The United
States Milling Co., generally known as
the Flour Trust, collapsed Saturday
afternoon, but the fact did not become
known until Monday when Judge Jen-
kihs in proceedings ancillary to the
United States court of New JerseY,
appointed three receivers for the COM
pany, two of whom are now in charge
of the property. The receivers are
Daniel Thomas, of New York; Charles
e. Kimball, of Summit, N. j., and
Albert C.. Loring, of Minneapolis.
Cause of the Collapse.
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 institutes the suit in
which the receivers are appointed,
makes the following statement con-
corning the causes leading to the fail
url of the company, in the complaint:
Couldn't Carry Out Its Plan.
"That in the organization of the
company" says Mr.. Ballou, st had
been hoped that sufficient means
would be provided for the purchase Of
the property required by the company
and to supply sufficient working CAPT
tai 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 indus
trial securities the company was una
bic to carry out the plan and was
Obliged to resort to borrowing money
OH it's collateral trust bonds, and
otherwise urged to secure a temporary
loan by it's issue of so-called trust
bonds, and further, by the failure Of
this plan, by borrowing in open
market.
COnpnny's Floating Debt.
the floating Indebtedness, which
amounts to $1,O)5,5Oe. 0S, of which
S14l,365 is due, and 1894, $50 is on de-
mand loans
The United States Milling Co. was
formed with a capital stock of $25, OO0,-
600 on April 81, 1899, having secured
control of the following milling prop
erty:
Properties Involved.
In Milwauliee-Ihe Daisy and Faist.
Kraus mills.
In Superior-The Lake Superior, the
~, ga,
In West Superior Grand Re-
public, the Freeman, and the Minkota
mills.
In Minneapolis-Th Excelsior, the
Standard and St. Anthony mills, to-
gether with 05 per cent. of the capital
stock of the Northwestern Consoli-
dated Milling. Co., which operates and
owns five big -four mills.
In Duluth.-The Imeprial and the
Constructed terminal elevators.
In New York State-The Syracuse
mills, the Raldwinsville mills, the Ur-
ban mill.
In New Jersey-Ninety-fiv per cent.
of the Hecker-Jones-Jewell Milling
Co., which operates and owns four
large mills.
Further Proceedings Necessary.
The 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 10 give an additional bond OF
$4,000 each. 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.