The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1902-06-10
COTTON MILL TRUST.
SOUTHERN MILLS TO FORW ONE
SOON.
will Have a Capital Of 100000, ,OOo-In'
corporated in New Jersey-Some Facts
About the Merger.

There is considerable interest be-
ing taken by the people of this sec
ton in the proposed yarn mill trust
that will be formed soon by the
Southern mill men.
F. L. Underwood, Of 81 Nassau
street, New York city, who proposes
to combine 60 per cent. or more Of
the Southern yarn mills in a trust,
in an interview in the Charlotte Oh
server, said:
"In October there will be incor-
porated under the laws of New Jer-
sew the Southern Cotton Yarn com
pany, capitalized at $6O,OOO,OOO.
The merger of practically all the
Southern yarn mills is assured.
There are over million and half
yarn spindles in the South, and the
owners of over half million spin
dies have already signed the con-
tract to deliver their mills into the
hands of the combination"
Quite recently Mr.. Underwood has
receive1 letters which indicate that q
msjority of the yarn mill men in
North and South Carolina, Georgia,
Alabama, Tennessee and Kentucky
share his optimistic view of the pros
poets of speedy merger.
In further discussion of the
merger, Mr. Underwood said:
"It will mean the immediate in
vestment in Southern mills of about
| S8,OOO,0O0 in New York capital.
The consolidation will effect main
tenance of a fixed price for the pro-
ducts of the mills, causing an i'm
provemen- in the selling of the
goods. It will result in a great
saving in the distribution of the
goods, which will 60 to their nat
ural markets. 1t will also mean
great saving in the purchase of sup
plies or stores The plan is fair to
all the mills, and they are coming
to take that view of the matter 1t
is more conservative in its capitaliza-
ton, so far as the preferred stock is
concerned, than any other industrial
company that has been foated on
the New York market"
There is no longer the shadow Of
a doubt the success of the merger.
| Ten of the best known mill men in
the South sre busily preparing fol
the organization, which will be ef'
fected inside of 80 days.
"If your plan is successful, as you
suggest, will it cause decrease in
the present number of officers in the
Southern yarn mills9" the reporter
asked.
"There will be no changes for
a year," was the reply. CATER that
official decapitation will be only fo1
logical cause. Two thirds of the
directors of the company will be
Southern men, and I am pretty sure
that the president of the trust will
be Southerner.
R. S. Reinhardt, of Lincolnto".
who was with Mr.. Underwood last
night, concurred with the latter in
his belief that the combination is to
be looked upon as settled 1act.
Tnis view of the situation was also
in harmony with the opinion OF
Leonard B Paulson, Of the firm ct
Buckingham, Paulson & Co., com
mission merchants of New York city,
who declared that the Underwood
proposal was like a touch Of fire. to q
| powder bale, and that it was meeting
with the unanimous endorsement OF
Southern mill meD.
How do the commission men
look upon the plan!' asked the re-
porter
"They are becoming reconciled to
it-are getting into the procession, "
Mr. Paulson replied. $50 far as
| am personally concerned, | think the
merger is the best thing that could
happen"