The Minneapolis journal., 1906-11-05
DEAD FLOUR TRUST
/. IN DULUTH COURT
PROMOTER MCINTYRE DEFEND.
ANT IN SUIT TO RECOVER. ID,
Joseph r. Megrue Sues for Restitution
Of 100000 Invested in Big Company
When It was formed Plaintiff Claims
Prospectus of Comanpy Was Too
Roseate and Optimistic.

Memories Of the time when the big
promoters Of the east undertook to
Form "flour trust' are brought to
mind by the suit of Joseph R.. Megrue
against, Thomas A. Mcintyre, now on
at Duluth. The -four trust came as a
late development in a craze for COM
b1nation and consolidation that swept
the land from e&d to end after the
country began to pull out Of the, bust
of 1898. It.-spent itself prior to 1900,
in which time everything from hops
to hoopskirts had been put into one
combination or another. In -four alone
there had never. been trust. t,ro,
It remained for Thomas A. Mcintyre,
New York promoter, to organize. a
company that, according to prospectus,
was to- control q large part Of the out:
put, cut figure In the trade and hand
out big money in dividends to its stock.
holders.
.; Birth of Combination. ,;,.
On April ~, 1899, the United States
Flour Milling company came into exist.
ence under a New Jersey charter. It
had an authorized capital Of $25,OOO,-
600, but not all the stock was issued.
First earnings were to be applied to
capital outstanding of $5,0OO,6OO pre-
ferred per cent stock, $S,50O,OOO com
mon, and $7,500,O0Or g. per cent bonds,
the latter to run until 1889. -. -
The combination embraced the Heck
er-Jones-Jewel company of New York;
Empire, State Mills Syracuse, N. Y;
Urban Milling eo1npany, Buffalo; Daisy
BOILER mills, milwaukee, and Superior;
Anehor mill, Superior; William Butman
mill, Superior; Russell &. Miller mill,
SuDariOr. FHraeman Mi1linr ao,,-,n,-
West Superior; Mankato Milling com.
pany of Duluth; Duluth Imperial mill,
Duluth; Duluth Roller MILL Of Milwau:
kee; Minneapolis Flour Manufacturing
company (3 mills); and Union mill of
The weak point in the organization
was the number Of eastern and head
of-the.lakes mills that were not SO won
derfully prosperous. The properties
with greatest possibilities were in Min
neapolis, but they made only small
part Of the whole. The combination,
moreover, was unpopular because: it
looked like trust in the staff Of life
and suggested trouble with the people
The influential newspapers and trade
papers took up the fight, W. @. Edgar
Of the Northwestern Miller attacked Sc
tooth and nail. It failed to secure con.
troll Of the Pillsbury- -Whshburn and
Washburn Crosby mills Of Minneapolis
failed to show the earnings calculated
upon and went into recefvership and
reorganization. -. -, - - :, -
- Wants Money Back. -
After the dapse Of six years appears
John M. Garner, a New York attorney
representing Joseph, R. Megrue, wht
asks for the restitution Of 100000 in
vested, upon the allegation that Nc
Intyre's prospectus covering the com
pany magnifed, and SO misrepresentei
the earning power Of the properties
especially the Duluth mills, thereby de
ceiving the investors. H. ,.., -,
Today there is no United States Flou1
Milling company. Whatever it repre-
sented has found placement in the Stan
dard Milling company, the reorgan
lied company This corporation holds
1897 ,450 of the $l,0O0,0OO preferred
stock Of the Northwestern Consolidated
Milling e. company Of Minneapolis
s., ,145,450 Of the ST. ,25O,O00 Of common
stock and $765,O00 Of the per cent
bonds. 80 rt:sr
| While it has held its properties to-
gether, It. has never exerted the trade
infence expected Of it by B. the pro
moters. .: = ~: ss.s..s-.. '=z:.ky: