The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-12-02
PIONEER COTTON MILLS.
AN INSTITUTION WITH A HISTORY OF
FINANCIAL vICISsITUDE5
Sold at Public Cutlery Last Week, But
A Hitch Follows, Preventing the
Transfer - Another Sale Ordered
What's This We Hear OF a Scheme2

hrapoior - AnOJnsr oale Oruereu-
What's This We Hear OF scheme2
Those who put their faith and money in
the Pioneer Cotton Mills away back six
years ago have never seen the color of the
latter, unless they sold at a loss, while they
are all shaky more or less ON the first men-
toned article. The enterprise seems 10
have been i'll starred from the start. No
scheme ever devised began under more
ilattering auspices or promised greater
success, nor has any ever been more dis
appointing.
The mills started after their completion
in 1882 at a cost Of about $4,000, with q
boat load Of coal, %, 900 bushels, all paid
for, had money in bank to pay hands with,
did not owe a dollar to any one, except
the shareholders, and had q large supply
OF raw material in the way OF cotton to
make into goods. The first report made
to the owners by the management in JAN
uary, 1883, showed some gains, and divi-
dend OF 500 per share was made. This has
been all that the original shareholders
have ever received. A few have sold out
atvarious prices, some at 25 cents on the dol
lar, some at less and others a little more.
During their early history the mills used
between 1000 and $500 bales OF cotton per
annum, ran at an expense OF between $500
and 5000 per week, or $4,000 per annum,
and the report for the year 1885 shows
losses for the year of S23, 1858, OF which
Sl3,1 200 was lost by means other than
operating the mills. The value OF the
plant ut that time was placed at Sl60, 573,
and the loss in operating the mills for two
years was set down ut SIG, S64.
During the winter Of 1884 and 1885 the
directors authorized the issue OF $50 600 in
o per cent. bonds, and these were pledged
Tor money TO operate them. Later another
series of $50, 900 in second mortgage bonds
was issued. Several years ago the manage
ment changed, MIR. Q. Il. Clarke retiring
from the presidency and MIR. John John
son taking his place. The latter exerted
himself 10 make the mills return profit,
but he found IL up hill work.
About six months ago Mr. johnson re-
tired from the presidency and Mr.. Thomas
Barrett took the place. There has been
some activity since, but no money has
been made. The mills closed down few
days ago TO await the result OF sale or
dered by the stockholders. Meantime the
interest on both the first and second mort
gage bonds defaulied last spring, and since
then the same has accumulated TO the
amount Of -, 100.
The accumulated debt, including bonds,
$50, 600, and accrued interest, s., 100, now
amounts TO sol 200, and the sale which
occurred last Thursday was subject 10 this
amount. The property was auctioned of
at the corner OF Main and Madison streets,
and Mr.. 4. Il. Sims became the purchaser
at 81 900. The only bidder besides Mr..
Sims was Mr.. John johnson, who started
the bids at $500, but retired after $3.50 had
been reached. Since the sale there has
been some hitch, and Mr.. Sims having
paid 81 900 in cash, Is out that sum, MS
one OF the gentlemen authorized TO make
the sale, W. L. Taylor, has declined to
sign the transfer papers Mr. Thomas
Barrett and Mr.. 4. ID. Frayser have ex-
pressed willingness 10 sign, but no title
can be made unless Mr.. Taylor joins with
them, hence the hitch, and another sale Is
now said 10 DO ordered for the 10th in
slant.
Meantime a meeting OF parties inter-
estod has been called for Tuesday evening
next TO consider the situation and decide
upon the best course. The shareholders
Of 800 shares would realize some $500
II the sale TO Mr.. Sims Is made legal,
while the purchaser expected 10 pay the
deiaulted interest on both series OF bonds,
start the mills 10 going and try TO make
them profitable. II Is understood that he
has ample capital at his command 10 do
this.
The hitch In the matter has doranged
the plans OF Mr.. Sims, however; and yet
there arc parties in the market buying
the first mortgage bonds, two having sold
u couple OF days since at 81 cents on the
dollar. The second mortgage bonds, $685.
600 in amount, ARE worth nominally almost
IS cents ON the dollar. 1t is rumored that
the contending factions will work to
deliver the securities, and that some claim
that the next sale will see the mills 20 M
$40, 900, moro or leas, aud not
enough 10 make tho int mort
gage bonds good. O,hcrs, however,
claim that the property is too
valuable 20 be knocked OIL at any such a
figure. Al the time tho mills closed, a
week or 80 ago, about 100 hands were at
work. and the mills were turning out rope
and domcstics. There is no telling at pres
ont who will gain possession Of the prop
orty.
Tho stockholders, In many cases. own
considerable quantity Of the bonds, and il
~ said that 5000 is held by n single in.
surance company. The second mortgage
bonds are not much sought after just now,
but tho iinls are inquired for. Tho fol-
lowing il list Of the stockholders Us they
stand at present.
W = d