Show l RE RECEIVERS FOR LARGEST MILLS IN THE WORLD Flour Mill Milling ing Affairs Somewhat Snarled FOUR NATIONAL BANKS v PETITIONED THE COURT OPERATION WILL NOT CEASE I AND ANDA A FLURRY IN FINANCIAL CIRCLES N OT EXPECTED Minneapolis Minn Aug S SAs As a step toward reorganization certain stock stockholders stockholders holders and holders of o the Pillsbury Washburn Flour Milling paper today petitioned the federal dis district district court for the tho appointment of ot re ro receivers to direct the business The pe petition petition was granted the court naming S son of ot the tho late Charles Pillsbury A C Loring licad of ot the Consolidated Milling company and A C Cobb an attorney The petitioners were the Northwestern National bank the tho First National the National of ot Minne Minneapolis Minneapolis apolis and the Second National of ot St StPaul StPaul Paul together with J S There will be no interruption to busi business business ness of ot the company compan pending reorganization Friendly Proceedings After naming the tho receivers the tho court fixed their Joint bond at and announced that five days da s would bo be al allowed allowed lowed for them to file it The petition for receivership was on a friendly ba basis sis fils as evidenced by the appearance of o oJ J S Pillsbury as one of ot the petition petitioners ers and the fact that the company conj coni seated to the tho action without opposition This may be duo due to a necessity for a change of management which was wasT T broadly intimated in the petition The application for receivers has created surprise but It is not expected to cause any flurry In milling or finan financial financial cial circles The milling Interests in Minneapolis have enjoyed an exceptionally good year and the conditions that affected the company have been peculiar to that or organization Bad Management Charged While It Is true that the petition for receivers receiver cited bad management as one of ot the trial main n reasons for the action no announcement is yet made regarding the status of ot Henry L Little Mr Lit Little Little tle succeeded to the management upon the death of ot C A Pillsbury ten years ngo n o but the officers of ot the company and receivers as well w state positively that at nt this time no action regarding Mr Littles status has been taken The indebtedness of ot the defendant company Is set at more than without security The book value of or the property exceeds The total secured Indebtedness coveted by b deben debenture debenture ture bonds is or a total in of Liquid assets re estimated at to pay 5 unsecured debts The company has of ot its prod product product stored In states outside of or Minnesota Statement of Receivers This afternoon the following state statement statement ment was issued from the receivers office v This company which has always en enjoyed joyed joed a reputation second to none and andis is J the successor of ot the interests which first made Minneapolis famous as a milling center has found it necessary to t tho conservation of or the Interests of ot Its creditors and shareholders to place its property temporarily In the hands of the circuit court in order that the Continued on Page 2 L RECEIVERS FOR LARGEST MILLS IN THE WORLD Continued from Page 1 rights and Interests of oC all parties In any anyway anyway way concerned ray my be fairly and effectually effectually preserved Largest in the World Tho Flour Mills company limited is the largest milling company in the world and It may not bo generally known that it has exten extensive extensive sive and varied interests aside e from those directly connected with Its prin principal principal cipal business of ot manufacturing flour It Is the tho owner of ot the St Anthony Falls Water Power company which controls all of or the water power on the easterly side of or the Mississippi river rIer at Minne Minneapolis apolis and is the owner also of the Minneapolis Mill company which con controls controls all of oC tho water waterpower power upon the westerly aide of or the river These Inter Interests interests ests alone without reference to Its oth other other er property or holdings and entirely aside from its properties directly en engaged gag d In manufacturing are of Im Immense immense mense value alue and not generally asso associated associated with this concern by the public at large Owns Elevators and Mills In addition the company compan owns the Minneapolis Northern Elevator com company company pany which controls a line of or elevators of or the Great Northern railroad from Minneapolis to Devils Lake this being a subsidiary company which has served tho parent company in the ca capacity capacity of or buying and supplying ing tho wheat needed In the prosecution of oC its business Add to these tho A mill tho largest flour mill in the world with a dally daily capacity of barrels and its old mills tour four in num number number ber in Minneapolis and ono one in Anoka tho public will then understand some something something thing of or the actual resources of or this company and the effect which Its mis misfortune fortune f were it to be permanent would mean not only to this community ty t but to the country countr which lies back backof backor of or It and tributary to it It is under understood stood to he be impossible at this time to furnish for publication a n specific and Itemized statement of ot the value alue of ot the assets but the information will be made public later Inter in the pro proceedings proceedings Just commenced after atter the usual Inventories have been taken for forthe forthe the benefit of or all parties interested either as creditors or as shareholders As S a matter of oC course it is well un understood by all business men that a concern so largely engaged in a n manu manufacturing manufacturing enterprise must have hae at all times a n large amount of or outstanding obligations the proceeds of which fur tur furnish nish the working capital by which Its business is carried on It is true at this time as DS it always has been true In connection with this company and Its predecessors that this Indebtedness is B widely scattered throughout the countr country f very many of oC its obligations haYing having been placed by brokers In the east and west Minneapolis Banks Not Hurt So far as Minneapolis banks are concerned they hold not to exceed of or the tho indebtedness distributed among the local banks on a n basis not materially different from a pro rata of their capital The company therefore finds Itself confronted with a n situation which calls for tor negotiation with an Im Immense immense mense number of oC creditors with the added difficulty that the company is isa isa a British corporation all of or Its direct directors ors living lIln In Great Britain and only Its managing officers or agents being located here that part of ot the stock is held abroad and part is held In this th country so that it seems that some method m thod of oC procedure which brings all parties scattered creditors of oC the or organization organization stockholders and all other persons Interested In the corporation Into nto one body where rights may be tully fully and fairly deter determined determIned mined Is in tho best interests of ot all concerned With tills In view upon a petition filed today the tho receivers have hae been appointed with full tull power to operate the manufacturing plants and with the confident expectation that U ls expedient will be found to be only temporary and that ample property over and above all debts will be ulti ultimately ultimately left for tor the holders of ot shares It Is proposed to operate the mills un under under der receivers and In charge of or the re receivers receivers so that labor interests will wUl not be seriously affected at this time and this Is regarded as promising good re results suits in view of the tho very satisfactory condition everywhere of or the milling I I and grain business no other company i engaged in similar lines hero being In any way Involved Three Receivers Albert lbert C Loring the president of the Northwestern Consolidated Milling company who has for many years ears been identified with the milling inter interests interests ests of or Minneapolis and who brings to the tho receivership a ripe experience and Conservative careful business method which undoubtedly will prove of oC great value In the tho administration of or tho es estate estate tate Charles S Pillsbury son of ot the late lato Charles A who is a shareholder In the company but has never In an 1 way been connected either as aJi a director or managing agent or otherwise with the administration of or Its ns affairs and Albert C Cobb of or orthe the firm of or Cobb Wheelwright law lawyers lawyers of this city are the receivers named by the court |