The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-08
RECEIVERS NAMED
Big Washburn-Pillsbury Flour
ing Mills at Minneapolis
In Hands of the Court Pending
Reorganization.
LARGEST In WORLD.
The Concern Is Capitalized at
$5,OOO,OOO.
Last Report Shows Profits Re.
duced to a Minimum.

step to reorganization certain stock
holders and holders of the Pillsbury-
Washburn Flour Milling company's pa
per today, petitioned the federal district
court for the appointment of receivers
to direct the business. The petitian
was granted. the court naming c. $.
P1llsbury, son of the late Charles A.
Pillsbury. A. c. Loring, head Of the
Northwestern Consolidated Milling
company and A. c. Cobb, an attorney.
The petitioners We're the Northwest
ern National bank, the First National,
the SwedishAmerican National of Min
neapolis and the Second National of
st. Paul, together with j. S. Pillsbury.
There will be no interruption to busi-
ness of the company pending reorgan-
iZation.
Statement Issued.
This afternoon the following state
ment was issued from the receivers
office:
This company, which has always
enjoyed a reputation second to none
and is the successor of the interests
which first made Minneapolis famous
as a milling center has found it neces-
sary to the conservation of the in
terests OF it's creditors and share
holders to place its property tenn
porarily in the hands of the circuit
court in order that the rights and in
terests of all parties in any way con-
preserved.
1.-THE NEUTRALITY-SUSPICIOUS. Flour
Mills company, is the largest milling
company in the world and it may not
be generally known that 1t has extern
sive and varied interests aside from
those directly connected with its prin-
cipal business of manufacturing -four
1t is the owner of the ST. Anthony
Water Falls Power company which
controls all of the water power on
the easterly side of the Mississippi
river at Minneapolis and is the owner
also of the Minneapolis Mill company.
which controls all of the water power
upon the westerly side of the river,
these interests alone without reference
to its other property or holdings and
rectly engaged in manufacturing are
of immense value and not generally
associated with this concern by the
public, at large. In addition to this
the company owns the Minneapolis
and Northern Elevator company.
the Great Northern railway from Min
neapolis to Devils Lake, this being a
subsidiary company which has served
the parent company in the capacity
of buying and supplying the wheat
needed in the prosecution of its busi-
ness. Add to these the Pillsbury mill.
the largest -four mill in the world
with a capacity of 40,000 barrels and
it's old mills, four in number in Min
neapolis and one in Anoka, the pub
lie will then understand something of
the extent of the actual resources of
this company and the effect which its
misfortune were it to be permanent
would mean not only to this COM
munity but to the country which lies
back of it and tributary to it.
Assets Unknown.
ut is understood to be impossible at
RI furnish nTlh1ic9f alton a
specific and itemized statement of the
company's assets, but the information
will be made public later in the pro-
ceedings just commenced after the
usual inventories have been taken for
the benefit of all parties interested
either as creditors or as shareholders.
AS a matter of course, it is We'll un-
derstood by all business men that a
concern so largely engaged in manu-
featuring establishment must have at
ing obligations, the proceeds of which
furnish the working capital by which
its business is carried on. 1t is true at
this time as 1t always has been true
in connection with this company and
its predecessors that this Indebtedness
is widely scattered throughout the
country, very many of its obligations
having been placed by brokers in the
east and west.
so far as Minneapolis banks are
they hold not to exceed $780,
900 of the Indebtedness among the 10
cal banks, on a basis not materially
different from a pro rata Of their cap
ital. The company, therefore, finds
itself confronted with a situation
which calls for negotiation with an
immense number of creditors, with the
added difficulty that the company is a
British corporation, all Of it's directors
living in Great Britain and only its
q Cir1C nffcprS hain0 To-
Gated here: that part of the stock is
held abroad and part is held in this
country so it seems that some method
of procedure which brings all parties.
scattered creditors of the organiza-
tion. stockholders and all other persons
body, where everybody's right may be
fully and fairly determined. is in the
best interests of all concerned.
Operation Will Continue.
with this in view. upon a petition
filed today. the receivers have been ap-
pointed with full power to operate the
company's manufacturing plants and
with the confident expectation that
this expedient will be found to be only
temporary and that ample property,
over and above all debts, will be ulti-
mately left for the holders of shares
1t is proposed to operate the mills un-
der receivers and in charge of the re-
.ceivers SO that labor interests will
not be seriously affected at this time
and this is regarded as promising good
results. in view of the very satisfac-
tory condition everywhere of the mill
ing and grain business, no other COM
pany engaged in similar lines here be-
ing in any way involved.
Mr.. Albert c. Loring, the president of
the Northwestern Consolidated Milling
company. who has for many years been
Identified with the milling interests of
and who brings to the re-
ripe experience and con-
servative. careful, business methods,