The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1908-08-10
RECEIVERS FOR
LARGE CONCERN
Pillsbury=Washburn Mills in
Financial Trouble.
REORGANIZATION PLANNED

certain Stockholders and Holders of
the Concerns Paper Ask Court to
Take Charge Pending Proposed
Change of Management-Unsec
Liabilities Aggregate $5,ooo,ooo,
With Liquid Assets of $3,ooo,0oO.
Minneapolis, Aug. 10.-As a step to
reorganization certain stockholders
and holders of the Pillsbury-Wash-
burn Flour Milling company's paper
petitioned the federal district court
for the appointment of receivers to
direct the business. The petition was
granted, the court naming c. S. Pills
bury, son of the late Charles A. Fills
bury; A. c. Loring, head of the North
western Consolidated Milling com
pany, and A. c. Cobb, attorney. The
petitioners were the Northwestern
National bank, the First National, the
Swedish-American National of Mime
apolis and the Second National bank
of St. Paul, together with J. S. Pills
bury.
There will be no interruption to the
business of the company pending the
reorganization.
After naming the receivers the court
fixed their joint bond at 100000 and
announced that five days would be
allowed for them to file it. That the
petition for receivership was on a
friendly basis is evidenced by the
appearance of ]. 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
@a necessity for a change of manage
ment, which was broadly intimated In
the petition.
The Pittsburgh Flour Mills
company, limited, is the largest mill
ing company in the world and it has
extensive and variable interests aside
from those directly connected with
its principal business of manufactur-
ing -four; it is the owner of the ST..
Anthony Falls Water Power company,
which controls all of the water power
upon the easterly side of the Missis-
sippi 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. In addition the company
owns the Minneapolis and Northern
Elevator company, which controls a
line of elevators on the Great North
ern road from Minneapolis to Devils
Lake, this being subsidiary com
pany which has served the parent
company in the capacity of buying
and supplying the wheat needed in
the prosecution of its business.
Capitalized at S5,ooo,ooo.
The capitalization of the Pillsbury.
Washburn company is $5,OO0,O0O,
divided equally between the preferred
and the common stock. 1t also has
outstanding $4,150,0OO in bonds. The
last statement of the company, issued
four months ago, showed net earn,
ings of $4,000. Against this were
bond interest charges of $250,000, a
dividend on preferred stock of $177
900 and other charges of 100000
leaving balance of only $4,000. The
company was founded by c. A. Pills
bury, who was later joined by former
Senator Washburn. The stock is now
owned by English capitalists, but the
mills are operated by Americans.
The application for receivers has
created surprise, but is not expected
to precipitate any furry in milling OF
financial circles. The milling inter
ests in Minneapolis have enjoyed al
exceptionally good year and the con
ditions that affected the Pillsbury
Washburn company have been pecu
liar to that organization.
While ii is true that the petition fol
receivers cited bad management al
one of the main reasons for the ac
tion no announcement is yet made
regarding the status of Henry l.. Lit
tie, who succeeded to the manager
ship upon the death of c. A. Pills
bury ten years ago. 1t is regarded a!
inevitable that Mr.. Little will speed
lily be obliged to sever all connection
with the company, but officers of th'
company and receivers as well stat
positively that at this time no action
regarding Mr.. Iittle's status has beer
taken.
The Indebtedness of the defendan
company is set at more than $4,000
600, without security. The book valu
of the company's property exceed
$4,000, coo. The total secured indebt
edness, covered by debenture bonds
is $400e,0 600, or total indebtedness
of $4,000, 600 The liquid assets ar
estimated at s3,500,O00, to pay $4,000
600 unsecured debts.