The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-27
Forced to Suspend Payment After In
curing Floating Indebted
ness Of About Two Millions.
MAY BE REoRGAN1zED SOON
COMMITTEE AT WORK ON A SCHEME
TO REVIVE THE CONCERN.
appointment OF Receivers Said to Be
Part of the Plan-Statements from
Officers and Attorneys.


been appointed for the United States Mill
ing Company. generally known as the flour
trust. The combination, it is said, Is about
to be reorganized. and the receivership
proceedings are part of the plan. Action
was begun Saturday, but the fact did not
become known until to-day, when it was
announced that Judge Jenkins, in proceed
ings ancillary to the United States Court
of New Jersey, had appointed three receiv-
ers for the company, two Of whom are now
in charge of the property. The receivers
are Samuel Thomas of New York, Charles
z. Kimball of Summit, N. j.. and Albert
c. Loring of Minneapolis. 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.
George William Ballou, the stockholder
who instituted the suit in which the re-
ceivers were appointed. made the fol-
lowing statement in the application for
receivers: "In the organization of the
company it had been hoped that suf-
ficient means would be provided for the
purchase of the property required by the
company and to supply sufficient working
capital to carry on it's business by the sale
of it's first mortgage collateral gold bonds,
but, because Of the tight money market and
depreciation in 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 a temporary loan
by It's issue of so-called trust bonds, and
further, by the failure of this plan. by bor-
rowing in open market The money so bor-
n
which amounts to s1,O95,5OS of which s144,-
$50 is due and $394.350 is on demand loans"
Mr.. Ballou says he has made careful
investigation of the affairs of the company
and is satisfied that it is wholly insolvent
The company, Mr.. Ballou sets forth, will
be unable to meet any of its obligations as
they mature Its cash in bank Is but
$4,000, and it has no bills or accounts re-
ceivable the proceeds of which would be
sufficient to meet the matured and matur-
ing obligations. The quick assets Of the
other mills, Mr.. Ballou sets forth, do not
exceed S55o,0O0 and consist chiefly of flour,
bags and stock on hand, Of which but
small portion could be converted into cash
without great sacrifice.
The capital of the company is divided
into 250,0O0 shares, Of the value of 800 each.
Mr. Ballou owns $4,000 worth of the stock.
On May 1, 1893, the company mortgaged all
of its properties to the Central Trust Com
pany, of New York, to secure issue of
| s15,0OO,OOO 6 per cent gold bonds, of which
Sc, $4,000 have been floated. On Nov. 16,
1899, the company mortgaged s7500O0 of the
gold bonds and 1900 shares Of the preferred
stock of the Northwestern Consolidated
Milling Company, to secure issuance of
| 10000 trust bonds, of which SLOT, 600
have been placed on the market, the total
amount OF the bonds floated being $7,0S1, ,000
On top of these the company has outstand-
ing $1,5O0.000 of it's first mortgage bonds
pledged as collateral, and 81, 1885, 900 deposited
with the Central trust Company to be ex-
changed for an equal amount of the
Hecker-Jones-Jewell Company, and 1891 900
pledged as further collateral.
In the order appointing the receivers 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 injunction
is issued restraining all parties from inter-
fering with the receivers or from bringing
suit All creditors must file their claims in
the receivership proceedings.
The UniGed States Milling Company was
formed with a capital stock of s25,vOO,OO0 on
April u. 1880. having secured control of the
following flour milling property: In Mil
waukee, 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
AIinkota mills; in Minneapolis, the Excel
sior, the Standard and st. Anthony mills.
together with 50 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 Constructed Terminal elevators; in
New York State, the Syracuse mills. the
Baldwinsville mills. the Urban mills; in
New Jersey, 20 per cent. OF the Hecker-
Jones-Jewell Milling Company. which oper-
ates and owns four large mills.
A.