The sun., 1912-07-15
FOSTER M|LL|KEN
SUES FOR &,5OO,O0Q
Ex-Prcsident Alleges Waste IN
Conduct Of Business Of
Company.
IN BANKRUPTCY IN loo,
Present Officers and Banks Ara
Named in Present Action
Built Penna. Terminal.

Foster Milliken. eX-prcsidcnt OF Nm
ken Bros. engaged in the manu,ao.
ture Of structural steel and iron and
contractors for steel construction wo,t
has started suit in the Supreme Cou,,
against Gates w. McGarrah, Gilbert q
Thorne, Robert &. Lewis, Edward r.
Wallace the Mechanics and Metals ya
tional Bank. the National Park Bant
the Guardian Trust Company and ,ba
International Bank to collect Sl,5oO.00o
, The suit Is sequel to the operation
of the company's business under a r..
organization plan following bankruptcy
proceedings.
Mr.. Milliken sets forth that banks IA
which the company owed $3.50, 900 at IN.
time II went into bankruptcy have re.
ceived preferential treatment by the d..
PENDANTS. who were acting az Q com.
mittee. He also alleges that the d..
PENDANTS have damaged the business of
the corporation by wasting its earnings,
authorizing the payment OF exorbitant
salaries to members Of the stockhoders
committee and allowing unnecessary
counsel fees.
The concern has carried out many
structural steel contracts in this city
notably the construction Of the Pennsyl.
vania Railroad terminal and the Singer
Building.
! The business was founded in the sos
by Samuel Milliken. who retired In 1888.
! His sons. Foster Milliken and Edward
+. Milliken, organized the Arm Of Mi.
liken Bros. in the following year
and conducted an iron commission bust.
ness until 1890. when they began con.
tracing. They had Offices in Pittsburs,
San Francisco. Cuba, Mexico. Hawaii
and South Africa.
Articles Of incorporation were filed
at Albany on May II. 1902. placing
increased In July, 1905. to $2.50o.0 900
and again in January. 1906. to $5.5o0,0oo.
Edward +. Milliken was president Of
! the corporation until his death in 1906,
when he was succeeded by his brother,
| Foster Milliken.
The concern went into bankruptcy In
1907 on the application Of the Niles.
| Bement-Pond Company, Snyder
Black. John a. Roebling's Sons Company
and the Robert W. Hunt Company.
The liabilities were then estimated at
$6,600,000 and the assets at $4,000, 900.
| On July IL. 1907. Judge Holt appointed
, j. Van Nechten. William l.. Ward and
August Heckscher receivers and gave
them authority to raise 100000 with
which to carry on the business.
The receivers continued to run the
business and in November. 1909. Judge
Hough granted motion to dismiss
the petition in bankruptcy. The re-
ceivers reported at the time that they
had collected $6,500.o00 and expended
$4,000, 900.
| This dismissal followed the formula
ton OF plan whereby the creditors
authorized the naming OF a reorganiza-
ton committee consisting Of Gates NJ.
McGarrah. president Of the Mechanics
National Bank; Gilbert G. Thorne. vice.
president Of the National Park Bank;
William Fl. Wallace Of William H. Wal
lace & Co.. and A. A. Fowler, resident
partner Of Rogers. Brown & Co., to
carry on the business OF the company.
A statement made at the time showed
that the liabilities were sl2,45l,s54l5
and assets S7.659,39i45.
OF the defendants named in Milliken's
suit. Edward c. Wallace Is president
Gilbert G. Thorne is secretary, and
Gates W. McGarrah is treasurer Of the
company.