Minneaplolis Minn., March 3. -- Edward W. Backus, president of the Minnesota and Ontario Paper company, placed in voluntary receivership in federal court here Saturday, said last night plans are underway to for refunding the company's which mature March 1. Inability to refund satisfactory led to the present difficulties.
Mr. Backus re-emphisized that the paper company was only one of the 17 subsidary corporations of the Backus interests that is involved in the receivership proceedings.
He stated the interest on first mortgage bonds of the Great Lakes Paper Company at Fort William was due yesterday but that under the provisions of the issue the company has 60 days grace to meet the interest payments. He said plans for doing this were under way.
The Minnesota and Ontario Paper Company, and it's subsidaries have an annual capacity of 250,000 tons of newsprint paper, 34,000 tons of of high test linear board, 300,000,000 feet of high standard insulating material, and more than 125,000,000 feet of rough and finished lumber.
The company owns and operates power developments with a combined generating capacity of 105,000 horsepower. The timber supply in Minnesota and Ontario contigious to and tributary to the mills embraces a forest area of approximately 50,000 square miles.
Bonds of the Minnesota and Ontario company are widely held in Canada. The various issues were sold in the United States and Canada. The common stock is held entirely by Mr. Backus and his associates, it is understood.