The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-23
Failure Of the Border City and Sycamore
Mills at Fall River.
LARGE DEFICITS.
The Property in Legal Custody at
the Suit of Employees.
HISTORY OF THE MILLS.

The CITY vas thrown into violent state OF excite
meut to-day by tho intelligence OF Inc iaiuro OF the
Border City and Sycamore Mills. Tho matter was ut
nrst denied by the officials but not positively. and
now 1t is accepted established fact The Border
City is n complete wreck. and is about on the same
fooung as the Union, which was sunk by tho opera
lions Of s. Angler Chacc, whose hand also appears In
the wreck OF the Border City. The management Of tho
latter seems at a hasty glance to DO better than
ina. Of the former. Last THURSDAY notes Of tho
Border City aggregating $4,000 went 10 protest in
Providence and then the ingenuity Of tho
managers been cxertod up the difficulties
aud prevent misstatcments OF the treasurer. The
directors have been giving out that the corporation
was sall right" and they succeeded in temporarily
aaying suspicion They claimed that all the shortage
could be made good and the mill would 60 as usual
In q prosperous financial condition. direc-
tor of the mill to-day stnted that he had
negotiated $4,000 for tho purpose Of '1xing"
things up 10 meet all inquiries But ne found that
other paper was maturing rapidly and that u would
be necessary ask for othor loans. he suggested
that M investigation be instituted to
shat condition tho corporation really was. Experts
were at once employed to make thorough examina-
ton OF the books and report aud they have completed
their work IL first currently believed that the
deficit would reach half million. This OF course, In
cluded the Sycamore MIL lately merged Into the Bor
der City.
Tho directors OF tho Border City arc:-James A.
Hathaway, president; George F. Hathaway, treas-
urer; Charles p Stickncy, +. G. Kilburn, S. Anger
Chacc, Job r. Wilson, Chester w. Greene, Holder d.
Durfec, George Parsons, Isaac smith (Foxboro) ana
David Wilcox. Previous 10 tho burning OF No. mill
they had been running over eighty thousand spndles
and nearly two thousand looms, amt manu-.
,as any we Ren' connocsea directors The
Union and are reported 70 have lost every
srously as now reported i. VIII undoubtedly make
havoc among tho remaining ones, who arc reported
10 have been "undoubtedly sound" Mcssrs. Hath
AWAY and Cummings have placed themselves in the
hanus Of Deputy sheriff Wixon. This morning eight
Superior Court writs Of attachment were issued IN
John NJ Lancaster, Thomas Walton, John b. Mccain,
Thomas Ly nch. Is. W. Hutchins, Thomas Z. Connecn.
Silas b. Hatch ana Thomas Harwood. All the personal
property consisting Of COAL cotton ana cotton cloth,
has been lcvicd on, and It is understood that many
meeting OF the employees viii PROBABLY DO held and
collective suit Will DO entered 10 their favor which
win prevent an unnecessary largo amount OF cosss.
HISTORY or THE MILLS
The Border City Mills wcrc incorporated IN 1872,
and consisted OF Two mills till November II, 1877,
mills man uactured about twenty-four million yards
OF cloth per annum, and employed 900 hands. When
MiIL' the stock icing held by many small
stockholders. Mr.. George !. Hathaway treas-
urer originally vec !, A ss,o s;v ana About Ss
came bookkocper tor the Massasot Flour Mil,
ana became associated with his cousin, Mr.. Cnaco. A
few years ugo real estate bringing fabulous
prices, ho iavested and realized splendid advances on
purchases and soon there vas started the Bordor
sniS mn Wont On swim mingi1 MI Hathaway Won dc
respect or every body. and business mon began mme
Trade sent him 70 England icw ycars since 10 see
what could be dono IN exporting cloth. Bordcr City
out measures were taken toward rebuilding. THIS
was opposed by many yet ~. hathaway carried mis-
po a.a Ss % wnhn few YEARS S p1 me
Sycamore mills were built, but by mismnnagement
the property decreased 10 value tho CRY arose tor Mr.
hathaway 10 DO treasurer, and no WIS accordingly
elected, and matters immediately Improved. Lately
there was agtatcd another Sycamore mill; and, ac-
cordingiy, q low weeks Since sycamore NO. was
also started Thus Mr.. Hathaway had Two mills
his hands when the Union Mills crash came. Owing
Ms.nawa y'0'1 suspicion was Immediately aroused
as TO whether the Border City was all right Mr.
Aasnaway assured the directors tho. al was right
tho insurance money. Evasive answers were given,
which only served their purpose IN putting OF hnai
inquiry.
HATHAWAY PROBABLY sooS TO BE ARRESTED.
The capital stock Of tho Boston City Mill, which
always represented by Treasurer hathaway
about ihrcc-quarters paid. The feeling OK
e. ares. VIII ny. 1 ~ delayed very
long as that OF Cnacc He has persistcntly fasined
AFFAIRS the directors snco the Union Mills dotalca
lion. His friends claim that he can show that
rot one dollar OF money has been appro-
pr,aied 70 bis own use; that the origi-
In good faith; that Hathaway had properly enough TO
mold corporations harmless. and until within fow
days he believed hts mills would not LOSE that tho
recent Chacc had been made because the lat
ter threatened and him into OF action
which no Intended
MILLS STATEMENT.
A meeting OF the stockholders OF the Union Mills
held to-day, AZ which statement OF tho financial
affairs OF the corporation was presented The vaiua-
tion Of the mill property Is S9Ss. 120 20 The amount
OF regular outstanding against tho corpora
ton Is $433663 So The amount Of irregular notes
remaining UNPAID 10 $50s, 4o7 ~. Tho whole amount
OF irregular notes issued $3.50, 407 H. Tho total
amount Of regular and irregular fraudulent notes ID
$942, 991 90 The amount Of bins payable, In addition
70 the notes. an far as known, viii probably not |
exceed $5O,0O1 Tho properly OF the company - |
placed low estimate and VI the Legitimate notes
prc included In IT'S liabilities the company will
have valuable properly lct alter paying All its To-
gitsmate notes, aud, even should the corporation be
held liable Tor tho irregular notes, II will be able, at
tho present valuation oil It's property TO pay very
nearly hundred Genus on the dollar. MI John b.
Anthony recommended tho contcstng Of all notes.
that could DO ascertaincd which were legal and
which fraudulent void also that the present
Board resign and a organization DO formed, and
that they advertise Tor all demands against tho cor.
poraton TO DO presented Immediately. NO action was
taken upon tho suggestions, hut resolution was
adopted TO appoint an ADVISORY Committee, consisting
OF Messrs. John b. Anthony, Thomas T. Brayton and
James N. Morton, Jr., TO advise with and assist tho
directors regard 70 tho course and condition or the