Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1901-05-15
/SGTRO WILL BE SOLD.

The Sutro Cotton mill has passed into
Pthe hands of the bondholders and will
be sold on the block. The property was
turned over to the bondholders last
| Thursday. The question Of sale Is q
matter for future development; but al
the probabilities point in that direc-
| ton.
Mr.. VIM. H. Lyles, Of Columbia, who
has had charge Of the affairs Of the mill
since its embarrassment last summer
and who engineered the organization
of the Sutro corporation, was in York
VILE last week. AS already stated, Mr.
Lyles had nothing to say to the report
er for publication: but after he left 1t
developed that he had decided to throw
up the sponge and turn the property OF
| the corporation over to the holders OF
| the bonds.
It will be remembered that the Sutro
Cotton Mill company was organized on
basis Of 100000 Of first mortgage
bonds. It was provided that the inter-
est be payable semi-annually and that
the bondholders be permitted to step
in and take possession Of the property
Of the company either on default OF
payment of the interest, or on suspen-
sion of operations for as long a period
as thirty days. Under this arrange
ment and with this understanding, the
operation Of the mill was continued
from the time Of the organization Of the
corporation up to the I'd of March last
when 1t developed that on account OF
the condition of the yarn market 1t
was no longer possible to make expen-
ses, and it was decided to close the mill
down. The machinery came to astand-
still on Saturday, March 9.
fiDno nf nl0Sinp down III was
the hope of Mr.. Lyles to be able to re-
sumo operations as soon as the yarn
market should begin to show signs OF
recovery. But instead Of growing bet
ter, the yarn market grew worse. The
first interest payment became due on
April 1, and shortly afterward the &c
days Of idle grace expired. Having al
ready put a considerable amount OF
cash into the operation Of the mill, Mr.
Lyles was not willing to guarantee the
payment of interest; but still the bond
holders were not especially anxious to
take charge Of the property and sc
matters moved along until last week.
when the mill finally changed hands as
stated.
A circumstance that no doubt had
something to do with the suspension OF
March 2, was an unlucky cotton deal
with parties in Georgia. The mill pur-
chased 1000 bales of cotton, to be de-
livered during the following months, at
something like 10 cents a pound. Be-
fore fifty bales Of this cotton had been
used the price broke downward, and
continued to fall until the contract rep
resented a loss of something like $15,-
900. This handicap, on top Of the low
price that was being received for yarns,
seemed to erect an insurmountable bar
rier against final success.
AS to just what the bondholders are
going to do has not developed with GER
tainty. Although they are in posses
sion and have the right to retain the
property without further legal proceed
ings, it Is not probable that they will
see proper to do so. Unless they fore
close they are in danger Of annoyance
from that Georgia cotton debt. If they
sell, the Georgia cotton debt will be
wiped out along with all other claims
against the property, and it Is this fact
that seems to make foreclosure seem
most probable.
The Sutro property Is now in the
hands Of w. w. Lewis, ESQ.,, trustee.
The Loan and Savings bank owns a
majority Of the bonds and 1t Is for
that institution to designate the next
step to be taken. There can be no fore
closure except by authority OF an order
Of court, and the probability is that
the mill will stand idle for quite while
yet.
The electric light plant, Of course,
goes with the Sutro mill. There Is
nothing definite to be had on the sub
ject of this; but the probability Is that
the operation of the plant will be con-
tinued without interruption.
AS we understand it, the action Of the
bondholders in taking charge Of the
Sutro wipes out all Of the interests Of
Mr.. McClain in the property.