Next Story Back Table of ContentsMinnesota, Dec. 2-- C. T. Jaffray, president of the Soo Line, and R.
H. M. Robinson of New York were appointed receivers of the Minnesota and
Ontario Pulp and Paper Company to succeed E. W. Backus, E. W. Decker and
Charles W. Fowler, resigned.
Appointment was made by Federal Judge Joseph W. Molyneaux upon petition
of the outgoing receivers , setting up a plan of of re-organizion of the
receivership. Accompanying this was a petition filed by representatives
of bondholders, bank creditors and noteholders, assenting to the plan.
The change in receivers is the result of carefully worked out plans after
several months of expert surveys and audits of the paper company and its
17 wholly owned subsidaries, it was explained yesterday. Among these are
the National Pole and Treating Company, which now has been put on a sound
financial basis by the refinancing of a note issue of $2,000,000 which matured
yesterday; and the Institute company which has a mill at International Falls,
Minn., that has been in constant operation under the receivership and which
has been completed and placed in operation its institute mill in Finland
to serve an established market in Europe.
Mr. Backus, directly and through subsidary companies, owns substantially
all the stock equities in the properties involved. By retiring as receiver,
he is placed in a position where he can concentrate on the problems of re-organization.
Mr. Fowler will be retained as one of the attorneys for the new receivers
in conjunction with the law firm of Cobb,Hoke,Benson,Krause and Faegre,
of Minneapolis.
"The newsprint paper business has been kept in operation at about 40
percent of the capacity of the company's mills. Contracts which existed
at the time of appointment of the receivers on February 28 were confirmed
by order of the court and have been performed by the receivers and new contracts
have been aquired.
"The retiring receivers have filled a report showing the consolidated
operation of the company and its subsidaries on September 30, 1931, and
supplemental reports will be filed as soon as the audit can be made bringing
the report down to November 30, 1931.
"All current obligations incurred by the receivers, with very few exceptions,
have been liquidated, the properties have been maintained, the good will
of the business has been preserved and the retiring receivers have turned
over to their successors a cash balance in all companies of approximately
$2,000,000.
"Due to the general business conditions all of the various businesses
operated by the receivers have been less in volume than in previous years,
both in the amount of products sold and the amount received for them; nevertheless,
the amount of earnings has been largely in excess of the loss which would
have been occasioned by the general shutdown. All essential and practical
economies have been put into effect, including reductions in excecutive
and other salaries. Labour has been employed to the fullest extent possible.
All interested parties are working in harmony go preserve this great industrial
enterprise for the northwest."
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