The Washington herald., 1908-08-09
RECEIVERS NAMED
FOR FLOUR MILLS
Pillsbury WashbuTn Com
pany Affairs in Court.
STATEMENT BY THE OFFICIALS
Reorganization Is Planned and VAL
uabIe Property Owned by Company
Held by British CapitaIIEts-Have~
Capacity of 10000 Barrels a Day.

Chicago. Aug San application for q
receivership for the PiIlsbury- -Washburn
Flour Milling Company, made by certain
stockholders. was fled At Minneapolis
to-day and was granted
The court named c.. :. PiIIsbury. son Of
the late Charles A Pillsbury. A c. LOr-
ing, head OF the Northwestern ConsoIi-
dated Milling Company. and A. c. Cobb.
an attorney
The petitioners were the Northwestern
National Bank. the First National. the
Swedish-Anertcan National Of Ninueapo-
lis, and the Second National Bank OF St
Paul, together with J 5 PiIlsbury- There
VIII be no interruption 10 business Of the
company pending reorganization
Company Issues Statement.
This afternoon the following statement
was issued from the receivers Office:
This company. which has always en-
jOyed a reputation second 10 none. and is
the successor OF the interests which first
made Minneapolis famous as a milling
center. has found II necessary TO the con
servation OF the interests Of its creditors
and shareholders 10 place its property
temporarily IN the hands Of the Circuit
Court. in order that the rights and inter
eSts OF al parties in any way concerned
may be fairly and effectually preserved
It IS true at this time. as il always
has been true IN connection with this
company and its predecessors. that this
Indebtedness IS widely scattered through
out the country. very many OF Its oblisa-
Jions having been placed by brokers in
the East and West.
SO far as Minneapolis banks are con-
cened. they hold not 10 exceed $4,000
Of the indebtedness. distributed among
the local banks. on a basis not materially
different from a prorate Of their capital
The company therefore, finds itself con-
frouted with a situation which calls for
negotiations with an immense number Of
creditors. with the added difficulty that
the company is q British corporation. ali
OF is directors living IN Great Britain
and only its managing officers or agents
being located here, that part Of the stock
IS held abroad and part IN this country.
so JzaI II seems some method OF proceed
ure which brings all parties. scattered
creditors OF the organization stoclzhoId-
eTs. and all others Interested in the c0rp0-
ration, into one body. where everyb0dy's
rights may be fully and fairly deter
mined. Is in the best interests Of all con-
Cerned-
Bond Fixed at 100000.
After naming The receivers. the court
fixed their joint bond n $4,000. and an
roUnced that i've days would be allowed
for them 10 file Il That the petition for
receiverShip was on a friendly basis Is
evidenced by the appearance Of J 5
Pillsbury as one Of the petitioners, and
the fact that the company asseuted 70
The action without opposition This may
be due 10 a necessity for a change Of
management, which was broadly inti-
mated n the petition
The application for receivers has Gre
ated surprise. but Is not expected TO pre-
cipitGte any furry in milling or financial
circles The milling interests in Mime
apolis have enjoyed an exceptionally good
year. and the conditions that affected the
Pillsbury- Fashburn Company have been
peculiar 10 that organization
Owned by British Capitalists.
The capitalization Of the Coupa7v
IS S.o01C2o, divided equally between
the preferred and the common stock. II
also has outstanding $4,000 in bonds. /
The last statement Of the company fs-
sued four months ago. showed ret earn /
inss Of $4,000. Against this were bond
interest charges Of sG590o0. a dividend on
preferred stock Of $1,000 and other
charges OF $1,000. leaving a balance OF
only $1,000. The company was founded
by c A Pillsbury. who was later Joined I
by former Senator Washburn- The stock /
IS now owned by English capitalists bur Z
the mills are operated by Americans The
mills have "A capacity Of 5000 barrels. per {
Eav