The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1904-02-16
u. S. MILLING.
CO.'S CONDITION
V. G. Pitney Grants a Rule
to Slow Cause Why the
Receivers Report
Should Not Be
Approved.
B0NDaOLDERs VS.. CREDITORS
How the Business Was Con-
Quoted u til Sold to the
Standard Milling Co.
May 81, 1902.
B0ADHOLDERs VS.. CREDITORS


Chambers yesterday afternoon, granted
rule to show cause why the report OF
Charles E. Kimball and Albert G. Lor-
ing, receivers for the United States Mill
ing Company (known as the -four trust),
should not be approved and the receivers
discharged.
Counsellor Sherrard Depue, of New
ark, representing the receivers. made the
motion. The rule is returnable March
IA.
Receivers Kimball and Loring were ap-
pointed February "a, 1900 There was
third receiver-Samuel Thomas, who
has since died.
The report of the receivers was recent
ly fled with the court 1t contains 160
typewriter pages and shows the total
unpaid liabilities to be $3.50, ,283.61,
and assets collected to be $2,77S, 1906.
The report also gives complete account
of the work of the receivers from the
time of their appointment until the prop
erty of the defunet corporation was sold
under foreclosure proceedings instituted
by the Central Trust Company, who held
a first mortgage for the bondholders.
In making his motion, Counsellor De-
pue said that the only contention likely
to arise would be between the bondhold
sessz and tie~ether=eReGtors The general
creditors, he said, would probably insist
that the deficiency existing when the
work of the receivers was completed be
charged to the bondholders and not
against the general account. He admit
ted that prior to the foreclosure proceed
ings the business of the company was
run at loss by the receivers.
In telling of their Management, the re-
ceivers in their report said among other
things
I'VE continued to operate the mills
owned by the United States Milling Com
pany at Milwaukee, Buffalo and SYRIA
cuse, and said operation was continued
until May 81, 1902, on which date the
plants of the mills We're conveyed to the
Standard Milling Company, New Jer
/, I, bo
purchaser of the mills at the sale under
foreclosure in the suit of George William
Ballen. The mills at Minneapolis were
not operated by us for the reason that
previous to our appointment as receivers
the mills had been leased blythe United
States Flour Milling Company at an an
nual rental of $4,000 in addition to
taxes, insurance, premiums, water rents
and fixed charges. The Minneapolis
mills have since the date of the lease
been operated by the Northwestern Con-
solidated Milling Company. At the time
of our appointment none of the mills of
the company at Duluth, Minnesota, and
Superior, Wisconsin, were in operation.
In a previous report we STATED our
opinion that it was not feasible at that
time to operate all of said properties and
that it was not economical to operate
any mill intermittently, but that sufficient
mills should be operated to supply the
trade that could be held and obtained for
the properties, and that such mills as
were used should be kept in continuous
operation to their full capacity. There
fore we commenced and fer a time con-
tinued the opera ton of the Freeman mill
at Superior. But the business of the mill
proved to be improbable. We were
without funds to operate any of the mills
at Duluth and Superior, and although au-
thorized by court to do so we were un-
able to borrow money to operate the
mills. We leased a part of the property
at Duluth and Superior to the Standard
Milling Company, which agreed to main
tain it and also act as caretaker of the
other mills and thus relieved the estate
of the burden of maintenance and reduc-
ed our payroll"