The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-28
THE COMBINE AGREEMENT.
THE PAPER NAVAL STORES MEN
WE'RE ASKED TO SIGN.


II. williams as to the Nature of the
Proposed Naval stores Combine.
Not known whether Any of the
FnctoraEe Firms Signed the
Aereement-The Firms Given the
Opportunity to Put Their Own
Prices on Their Accounts, Proper
~, business and Good VIII.
The Morning News publishes to-day the
agreement prepared by the promoters Of
the naval stores combine and offered TO
the naval stores faetorage Arms which it
was proposed TO take into the consolida-
ton.
A copy of the agreement was furnished
the Morning News by Mr.. J. b. Chestnut
for the purpose of contradicting the state
ments which have been made that the pro-
posed combina ton is not in the nature
of a trust or combine, but that IL is 10
be upon a cooperative basis, and one
which will give fun protection to the
producers.
As Will be seen, the agreement which 1t
YVES proposed that each company should
sign was TO contain an offer to sell at
the valuations placed by the company upon
It's book accounts its real and personal
property, its good will, together with its
contract and that of its managing stock
holders not to engage in the business of
naval stores factors and commission mer-
chants within ten years from the date
named, with an option for thirty days. As
the companies were allowed the oDportu-
nifty of placing the value of their book
nj -,,l
business good will at their own figures,
the offer doubtless looked like a very
tempting one to the majority of those 10
whom 1t was proposed. The firm of Ches-
mutt & O'Neill does not seem to have con-
sidered the matter in this light, however.
The agreement reads as follows:
Mr. John X. Garnett-Dear Sir: --
hereby agrees 10 sell to you and your as
sociates all of its assets. real and per-
sonaI as follows:
l. All of the cOmpanys book accounts,
in which are included its notes and mort
cages, at the face value of such book
accounts on the books of the company on
the day of transfer, now estimated to be
about s..
2. All of the companys property, real
and personal, other than accounts at its
real yalue-these appearing on books, but
not as personal accounts-noW estimated
to be worth about s..
stores factors and commission merchants
with its contract, and that of its manag-
ing stockholders, not to engage in said
business Of naval stores factors and naval
stores commission merchants a any period
within ten years from this date at and
4. This offer to hold good for thirty 600
days from this date.
5. In the event of your acceptance of
this offer, you will be required as a part
hereof to assume all contracts made by
this company TO make advances to it's Gus
toners and to carry out the same as per
obligation of this company. You are also
TO assume and carry out the obliga tons
OF this company in the making of sales
of naval stores for future delivery in its
name for account of its customers. You
are to also assume all other contracts in
the nature of those above referred to such
as are customary in the conduct of the
business of naval stores factors. and com
mission merchants, such as the purchase
and sale of barrels, hoop iron, ct cetera,
ct cetera. list of all of which contracts,
sales, etc, etc. will be given to You on
the day Of transfer. Yours respectfully,
Whether any of the larger concerns.
which seem to have looked with favor
upon the opportunity signed the agree
ment is not known.
1t was the interview with MIR. ]. 2. VIII
lams in yesterdays Morning News which
attracted MIR. Chesnutts attention. ard
decided him 10 make an effective reply by
furnishing for publication the proposed
agreement.
Il notice that Mr. Williams SAYS that
the factors never contemplated selling out
to a combination or trust" said Mr.. Ches-
mutt We are glad to see these denias,
because il means that the proposed cor
poration, or trust, is dead but before ii is
buried il is fitting that we should make a
few remarks, as is usual in such cases.
MIR Williams seems to have undergone
change of mind on this subject and since
he has about lost himself it is well to
state that the proposed combination or
trust was upon different lines from that
which he claims, ana that the apparent
modification of the plan Is only for the
purpose of getting it through We now
know as much about the original scheme
as does Mr.. Williams but unfortunately
for him, we refused to go into It,
1--WE had not expected to divulge a Sc
cret left with us in confidence" said Mr.
Chestnut; NOR would do so If the
whole matter had not been denied. In
order that the public may see whose state
ments are correct we furnish for publica-
ton the memorandum agreement that was
left with us by Mr. j. X Garrett the
promoter, and Mr. Barber. the trust at
torney. for us to sign. Read it and ask
yourself whether or not it looks like a
mutual benefit cooperative producers So
ciety. This Is now said to be the scheme
but in view of the plain facts in the case,
Mr. Williams remarks are really laugha-
Bile Read the agreement, and see If 1t
looks like the scheme was gotten up in
the interest of the producers. Mr.. VIII
liams says it was; that the producers have
the right 10 come in and take stock OF
course they have, but after the factors
pool their business and issue stock, the
producers must know that they take the
Savannah river and arrive at the ocean
before they are allowed 10 come in. Be
fore subscribing we suggest TO the pro-
ducers mat they bring along their bath
ing suits and borrow life preservers."
IF the factors are so eager to do
something for the good Of the producers, +"
said Mr.. Chesnutt, "let them turn back
on their books and figure up the receipts
for the last twelve years and return to
each customer the cents charge on
each barrel of spirits and rosin and return
the amount with compound interest. 1t IS
well known that the charge of custody
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