The morning news., 1899-11-29
THE PLAN NOT MODIFIED.
MIR. WILLIAMS REPLY To MIR CHEs-
NUTT,s COMBINE TALK.


Thinks Mr.. Chesnutt Evidently Got
Close to the Promoters Thnn Any
one EIse-The "Custody and Labor
Charge One of Long Standing, He
Says, and Well Understood by the
shippers-Mr. williams Tells What
the Consolidation Proposes 10 Ac-
cOmpIish.
The publication In yesterdays Morning
| News Of the form of agreement submitted
by the promoters of the naval stores COM
bine to the firm of Chesnutt & O'Neill.
and presumably to other factorage firms,
accompanied by some caustic criticisms
| by Mr.. Chestnut upon the course of Mr.. J.
| p. Williams and other factors favorable
to the naval stores consolidation was the
| main subject of discussion with the naval
stores people during the day.
Mr.. Williams was asked what reply he
had to make 10 Mr.. Chesnutts charges
that he had changed front in the matter
ana was giving the proposed consolidation
entirely a different appearance from tbat
first given as well as other comments
made by Mr.. Chestnut. Mr.. Williams had
just returned form Jacksonville when first
| seen, and had only given the interview a
glance. AS soon as he had read 1t, how
ever, he announced his readiness to ans
wer Mr.. Chesnutts statements.
1.-THE form of agreement published by
you at the instance of Mr.. Chesnutt is
news to me- said Mr. Williams. "No
such form of agreement has ever been
submitted to me personally or to the j. p.
Williams Company, and did not know of
the existence of any such form until the
paper was shown to me by Mr.. Chestnut
himself some days ago. So far as I am
aware his is the only factorage firm
which has been favored with such pa
PER. At the time l did not have my
glasses with me and so did not read the
paper through, accepting Mr.. Chesnutt's
statement of the cardinal points. 1 read
it through for the first time in to-day's
Morning News. Not only have not been
asked to sign such an agreement but 1
state very plainly that l would not have
sigred If had been asked"
Il should infer from Mr.. Chesnutt's re-
marks said Mr.. Williams, that there
must have been two forms of agreement
prepared by the promoters one form pro-
viding for the inclusion of both factors
and producers in the proposed scheme, and
the other merely proposing to buy out the
factorage business only, and that only the
latter was submitted to Mr.. Chestnut.
am advised on competent authority that
Mr. Chestnut was inclined to regard this
proposition faVoraby, and stated his will
ingness to sell out, but said that his bus
mess was paying him so well that we did
not know what price to put upon it, From
the fact that MIR. Chestnut was favored
with a blank form of proposition and
was not, 1t is reasonable to suppose that
he got closer to the promoters than / did
and that he led them to believe that he
was willing to sell, as otherwise they
would hardly have left copy of the prop
osition with him. 1t seems TO me that Mr.
Chesnutfs conclusions that the original
scheme had been modified did not justify
him by giving out for publication a con-
fdential communication which had been
left with him with the express under
standing that it should remain a secret.
He will have to offer some further justi-
hcation of his course.
Il have nothing to correct or modify
with regard to my statements concerning
the proposed consolidation" said Mr.. Will
liams. The plan was, and still is, in
embryo, and naturally whatever has been
said upon the subject has been indefinite.
The public jumped at the conclusion that
a trust was about TO be formed, and In
the interview to which Mr.. Chesnutt takes
QmDTdSe, L merely UNDERTOOK 10 correct
This impression, by stating that the pro-
posed consolidation was simply an effort
to bring together and unity the various
discordant elements now engaged In the
business for the benefit of the industry
and that the producers would be given an
opportunity TO take stock in the company
when formed, upon the same terms as the
factors, and that their interests would be
fully protected.
This was and stllf Is the purpose in
view 1t was never intended to take in
everybody. In the main tie idea was to
bring together number of the large naval
stcres houses let them marshal their es-
sets and agree upon a capitalization, then
offer in opportunity to factors and pro-
duceTs al Ike 10 take the stock So far from
unloading watered stock on the producers,
they would be afowed 20 come In on the
ground floor along with the factors. In DO
ing this we would have to avail ourselves
of Northern capital to finance the pan,
but The bulk Of the stock wA1ld remain in
Southern hands, and the business would
be in the control of Southern men. The
plan, as l said. is still in embryo. The
capitalization has not been agreed upon
nor have other details been decided, but
I am satisfied that the plan will be carr ed
through TO a success"
"As to MIR. Chesnutt's talk on the sub
1ect of charges under the head of custody
and Tabor" said Mr. Williams, I have
this TO say ms charge mas peSn IN exist
once far many years. 1t is a custom of the
port and is as much a just charge IS in
surance or commissions. Every iudiVid
ual. firm or corporation favoring the fac
forage firms with business is put on no.
tlce in advance that This is a part Of our
regular CHARGES. The factors have ALWAYS
! maintained these charges, and their pa
! irons have been faithfully and efficiently
served. The combined charges at Savan-
| nah of insurance, commissions and custody
| and labor are not greater than the charges
| for handling naval stores at her ports,
! but on the contrary they are less than the
| charges prevail ng in New York. If our
customers, knowing in advance that these
| are a part of our charges. continues to
| patronze us il is evidence Of the fact that
| they do rot regard the charges as exces-
! sive We do not do a cheapiohn business,
| The shippers i'm a general way are the best
! judges as to whether or not the charges
| are Just and reasonable"