Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-08-09
BIC FLOUR MILLS IN COURT
Receivers Appointed for Pillsbury
Washburn Company.
SUIT SAID TO BE FRIENDLY
Desire of Stockholders TO ReorGRniEe
Company and Take Care of SCAT
tered Creditors Declared
Motive of Petitioners.

| MINNEAPOLIS Mimi, Aug. s.-Incident
to a reorganization, the stockholders of
the Pillsbury- Washburn Flour Milling COM
pany today petitioned the federal district
court for the appointment of receivers.
The petition was granted, the court nam
ing C. S. Plllsbury, son of the late Charles
A. Pillsbury, A. c. Loring, head of the
Northwestern Consolidated Milling company
and A. C. Cobb an attorney. The petition
ers were the Northwestern National bank,
the First National, the Swedish American
National of Minneapolis and the Second Ma
tior.al of st. Paul, together with ]. S. Pills
bury. There will be no interruption to
business of the company pending reorgani-
zation.
After naming the receivers the court
! fixed their joint bond at 100000 anS an
nounced that five daVs would be allowed
| for them to file It, That the petition for
| receivership was on a friendly basis is
| evidenced by the appearance of j. S. Pills
| bury as one of the petitioners and the fact
that the company consented to the action
without opposition. This may be due to
| a necessarily for change of management,
which was broadly intmated in the petit
! tion.
The application for receivers has created
| surprise but is not expected to precipitate
any furry in milling or financial circles.
| The milling interests in Minneapolis have
enjoyed an exceptionally good year and
the conditions that affected the Pillsbury-
Washburn company have been peculiar to
that organization.
| statement BY Receiver.
This afternoon the following statement
| 1, NFf1
| This company which has always enjoyed
| a reputation second to none and is the
| successor of the interests, which first made
| Minneapolis famous as milling center
| has found II necessary to the conservation
| of the interests of it's creditors and share
holders to place its property temporarily
in the hands of the circuit court in order
that the rights and interests OF all parties
in any way concerned may be fairly and
! effectually preserved.
The Pillsbury- Washburn Flour Mills COM
pany Qimited) Is the largest milling CON-
pany in the world and II may not be
generally known that 1t has extensive and
varied interests aside from those directly
| connected with its principal business OF
manufacturing flour.
II is understood to be impossible at this
time to furnish for publication specific
! and itemized statement of the value OF thu
company's assets, but the information will
l be made public later in the proceedings
Just commenced after the usual inventories
j have been taken for the benefit OF all par
ties interested either as creditors or a.
shareholders. As matter OF course, II Il
well understood by all business men that
concern so largely engaged in a manufac
turing enterprise must have at all times
large amount Of outstanding obligations
| the proceeds of which furnish the working
capital by which its business is carried on
Ii is true at this time, as Il always has beel
true in connection with this company ant
Its predecessors, that this Indebtedness 1
widely scattered throughout the country
very many of its obligations having bee
placed by brokers in the east and west
30 far as Minneapolis banks are concerne
| they hold not to exceed S350,000 OF the in
debtedness, distributed among the loca
banks on a basis not materially differen
from a pro rata Of their capital
Creditors Are Scattered.
The company. therefore. finds itself cor
fronted with a situation which calls 10
negotiation with an immense number Z
creditors with the added difficulty ths
the company is British corporation, all {
its directors living In Great Britain an
2 only its managing officers OF agents bein
located here; that part OF the stock Is he,
, abroad and part Is held In this COUNT.
? so that II seems that some method
{ procedure which brings all parties, sea-
. tered creditors OF the organization, stool
holders and. all other persons Interested