New-York tribune., 1908-08-09
BIG FLOUR MILLS FAIL
Observation-Disclosures. CO.
ReceiUers Named-Poor Collections
Blamed Be Reorgdn'zed.

Minneapolis Aug S-As step to reorganization
certain stockholders and holders of the fiilsou's-
! Washburn Flour Mills CcTnpany's paper To-Day Pc
ttioned district court for the appoint
ment Of receivers to direct the business fhe peu-
tion was granted the court naming c. s. Pflsoury
son of the late Charles A. Pilsbury; A Z Lorlhs'
| head of the Northwestern Consolidated Miiihs
Company. and A C Cobb, attorney.
The petitioners were the Northwestern Netionai
Bank, the First National, the Swedish American
National of Minneapolis and the Second Nationai OF
St Paul. with ]. s. Pillsbury There viii be no
interruption to business of the company pehoils
! reorganization. After naming the receivers the
court fixed their joint bond at s5oooOo ana an
nounced that five days would be allowed LOT eheii
to file 1t That the petition for recevership was
on friendly basis is evidenced by the appearance
of j s. Pillsblsry as one OF petitioners and the
fact that the company consented to the action
without opposition.
The application for receivers has created sur
prise but is not expected to any furry
in milling financial circles The milling interests
in Ninnea polls have enjoyed exceptionally good
year and the conditions that affected the Plls-
bury -Washburn company have been pecuilaf 10
that organization.
The PiIsbIry- -Washburn Flour Mills Company
Limited has operated, since its organization in its
present form in 1888, the Pillsbury "A. ana
&c" mills and elevators Palisade and Anchor mills
/ and elevators and the Lincoln mill at Anoka- its
product is distributed throughout the world by
! means FIVE thousand agencies.
= The inds btedness of the defendant company is
set at than s5.0Oo.00o, without security The
book value of the companys property exceeds
SIS GEO 600 The total secured Indebtedness covered
by debenture bonds is $4,000 000 total indebt-
edness OF SO 900 600 The liquid assets are esti-
/ mated s3.50e. 900 pay s5,ooo,ooo unsecured
debts.
This afternoon a statement in part as follows,
issued from the receivers Office:
This company. which has always enjoyed
reputation second 10 none and Is 5nS f
! mons q mil ing cerrr
to the conservation Of the interests of its cred
porarIy in the hands of the Circuit Court in order
that rights interests Of all parties in any
way concerned may be fairly and efectually pro-
! Tie PfIIsbury- -washburn Flour Mills Company,
Limited is the largest milling company in the
| world, and it may not be generally known that It
those directiy Connected WITH its principal busi:
ness ct s 99T It PaeT IS te omean2 9
which controls all of the water pump power upon
Minneapolis, and is the owner also of the Min
Mil Gmpn M wRc controls s of 4 fb Of Ter sne
In addition. the company owns the MINNEAPOLIS
line Of eievafors on the great Northern Rail-
these R Es the sbury mill the The largest oqr mill
| in the world with daily capacity OF 10000 par
neapolis and one in Anoka
II Is Understood 70 be impossible at this time to
ment Of the value Of the comPanys assets but this
of course 1t is well understood by all business men
that concern so largely engaged in manufactur
AMOUNT Of o1fstanding o6iigatona So far as Mn
nsapos @ banks M are concerned they hold not 10
among the local banks basis not materially
panv 6[ Dd fH e e Of cdhr6nfe 5n9P fePa ab stus
ton which calls for negotiations with immense
the company IS a British corporation all of its di-
reetors living in Great Britain and only its man
part Of the stock is held abroad and part is held
Of procedure which brings ali parties scattered
creditors of the organization stockholders and all
one body where everybodys tights may be fully
and fairly determined is in best interests of all
With this in view, upon petition filed to-day
to operate the companys ma nufacturine plants and
with the confident expectation that this expedient
pie property over and above all debts Will be uti-
posed to operate the mills in charge of the re
ceivers that labor interests will seriously
sfng good rasHF % in view 9f o the xr fs
condition everywhere of the -four milling and grain
business. other company engaged in similar lines
here being in any way involved.
While it Is true that the petition for receivers
cited bad management of the main reasons
for the action no announcement is vet made re-
garding the status Of Henry L. Little, who
ceeded to the managership upon the death OF c.
a. Pillsbury. ten years ago. officers of the com
pany, and the receivers well. say positively
that action regarding Mr. Littles status has
been taken
Chicago, Aug. 8.-The capitalization OF the
PillSbury-W WASN'T burn company, for which receivers
appointed to-day, is s5,o00000. divided
equally between the preferred the common
stock. II also has outstanding s4,150 900 in
bonds The last statement Of the company (issued
four months ago. showed net earnings of ss42,-
GOO. Against this bond interest charges of
900, dividend preferred stock of s1T7.000
and other charges of 100000. leaving balance
of only $4,000
The company was founded by C A Pflsbury
who later Joined by ex-senator Washburn.
The stock is now owned by English capitalists
but the mills operated by Americans The
mills have a capacity of 30 900 barrels a day
George A. Zabriskie the New York agent of the
Ptllsbury- -Washburn Flour Mills Company. Lin
tied, said that the embarrassment Of the m
pany due to poor collections. He added that
last May. because of its financial difficulties the
directors Of the corporation decided postpone
the dividend the preferred shares. which they
voted last December to pay. until such time as
the board resolved payments could be convenient
" made.
At the New York Produce Exchange II said
that the concern, which is a British corpora ton,
would probably be reore eanized into an American
corporation The of the failure was re-
cetved in Wall Street before the close the
ket but had effect prices. In the fnan-
caI district the failure of the firm attributed
unfortunate speculation in spring wheat 1t
was said that the firm had credited the re-
ports of great damage the spring wheat crop
and went short, only to get caught in the sharp
rise of eight bushel that
lowed