The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-14
COTTON YARN TRUST
SOUTHERN MILLS TO FORM COM
BINE.
TO HAVE s6o,ooo,ooo CAPITAL.
RESULT OF THE CHARLOTTE
MEETING.

Proposal of F. L. Underwood of New
York to Issue S3O,OOO,OOO Seven
Per Cent Preferred and $3O,OO0.OOO
Common 10 Buy out Mills Meets
with FavOr-MiI Owners to Sell at
a Good Round Price, Taking Half
in Common and Half i'm Preferred.
Committee TO which Matter Was
Referred-Win Report FavOrabIy.
Atlanta, April 13.-It is learned here
that plans are on foot for the forma-
ton of a gigantic trust of all the cot
ton yarn mills of the Southern States.
ma de by a committee of five appointed
at recent meeting of Southern spin
ners held at Charlotte, N. c., on April
s, and this committee will report IA
vorably to the formation of the trust
at a meeting to be held at Charlotte
on April %.
The committees report will favor
the acceptance of a proposal made by
F. L. Underwood of 81 Nassau street,
New York, which agrees to issue $780,
100000 per cent. cumulative pre-
ferred stock, and $SOOOO.OOO common
stock, making total of $50, O0O0 900 cap
ital. The company is to be incorpor-
ated under the laws of New Jersey.
The meeting held at Charlotte last
week at which this proposal was con-
sidered was a very quiet one, and the
seal of secrecy appears to have been
placed upon it. Mr.. Underwood, in his
proposal agrees to pay all of the yarn
mill owners for their property, a price
to be agreed upon by a committee Sc
lected by the mill owners with his APP
prevail, but it is stipulated that this
price shall not be in excess of 220 per
cent. of the fair cash cost of replac-
ing such plants, payment to be made
one-half in preferred and the other half
in common stock. Payment will be
made in cash, however, for all cotton,
cotton in process of manufacture and
goods on hand.
Upon the signifcation of so per cent.
of the mill owners that they will ac-
cept this proposal Mr.. Underwood says
he will have the contract prepared and
submitted to them for their execution.
The cost to the new company for fees,
commission, expenses and. charges of
all kinds, Mr.. Underwood says, will be
between and 121s per cent. of the to-
tai issued capital to be paid in stock
of the company in the same proportion
in which they are issued for cash and
plants. These charges however, are
not to be deducted from the price to
be paid to the mill owners.
The committee to which this proposal
was turned over for investigation is
as follows: w. C. Heath, Monroe Cots
ton Mills, Monroe N. c., chairman;
+. S. Rinehardt, Elm Grove Cotton
Mills, Lincolnton, N. c.: w. r. Carroll,
York Cotton Mills, Yorktown, S. c.: NJ.
M. Mccall, Opelika Cotton Mills, Ope-
lilNa, Ala: w. E. Mattress, Long ISL
and Cotton Mills, Statesville. N. c.
This committee will report favorably
upon the acceptance of the proposal
for amalgamation under this plan at
the meeting to be held at Charlotte
April %. The committee says that
amalgamation offers the only complete
remedy for the difficulties with which
the spinners have had to contend. Let
tiers to this effect have been sent out
to all the Southern spinners, and they
are asked to report on the matter at
the coming meeting at Charlotte.