The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-08

tate, Charles PlllSDury, son of the late
Charles A. Pillsbury, who is a share
holder in the company, but has never
in any way been connected, either as a
director or managing agent or other
wise, with the administration of its af-
fairs, and Mr.. Albert c. Cobb. of the
firm OF Cobb & Wheelwright, lawyers
of this city, are receivers named by
the court"
Bad Management Charged.
After naming the receivers the court
fixed their joint bond at 100000 and
announced that five days would be al
lowed for them to file it. That the
petition for receivership was on a
friendly basis is evidenced by the ap-
pearance of J. S. Pillsbury as one of
the petitioners and the fact that the
company consented to the action with
out opposition. This may be due to
necessity for a change of management
which was broadly intimated in the
petition.
The application for receivers has
created surprise, but is not expected to
precipitate any furry in milling or
financial circles. The milling interests
ceptionally good year and the condi-
tions that affected the Pillsbury-Wash-
burn company have been peculiar to
that organization.
While it is true that the petition for
receivers cited bad management as one
IL,
announcement is yet made regarding
the status of Henry L. Little. Mr.. Lit
tie succeeded to the managership upon
the death of c. A. Pillsbury 10 years
ago, but the officers of the company
and receivers as well state positively
that at this time no action regarding
Mr.. Littles status has been taken.
1t Was Expected.
New York. Aug. S.-George A. Ia
briskie, local agent for the Pillsbury-
Washburn Flour Mills company said
today that he had understood that the
company was considering a reorganiza-
tion and appointment of temporary re-
ceivers was expected. He said that
last May the company's financial con-
dition was such that the directors post
poned action on the dividend on the
preferred stock.
Capitalized at $5.OOO.OOO.
Chicago, Aug. S.-The capitalization
of the Pillsbury- Wa shburn company
for which receivers were appointed
today is $4,000. 900. divided equally be-
tween the preferred and common stock
1t has also outstanding 81. $50, 900 in
bonds. The last company report is
sued four months ago. shows net earn
ings of $4,000. Against this We're bond
interest charges of $3.50. 900. a dividend
on preferred stock of s177,000 and other
charges of 100000. leaving a balance
of only $4,000.
lie company was IOunQeQ Dy y. A
Pillsbury, who was later joined by for
mer Senator Washburn. The stock is
now owned by English capitalists but
the mills which have a capacity of
10000 barrels a day are operated by
Americans.
The item above is of particular in
terest in Kansas for the reason that
up to within the past few months the
Pillsbury- Washburn Co. had a large
amount of commercial paper in Kan
SAG. The banks of the Sunfiower
state We're in the habit of investing a
portion of their surplus money in this
great milling company-s paper or
notes. These latter were in denomina-
tions as high as for $4,000 each.
A prominent Topeka banker, when
interviewed today regarding the re-
ceivership asked for by the Pillsbury-
Washburn Co.. stated that he had
known that this milling company was
in a bad shape for thirty days past.
He stated that year or so ago large
number of Kansas banks were in the
habit of buying Pillsbury-Washbur
paper or notes, but did not believe
that much of it had been purchased or
handled in Kansas during the present
year. He was of the opinion that any
bank handling this paper recently had
had plenty of time to unload, and felt
sure that if any Kansas bank was
caught with any paper by this applica-
ton for receivership that it was for
a small amount and would therefore
do no damage to any bank in the state