The Savannah morning news., 1902-04-24
YARN MILL COMBINE
SOUTHERN sPINNERs LISTEN TO
MIR. UNDERWOOD.
A VERY ATTRACTIVE SCHEME.
THE MILL MEN FAVOR AMALGAMA-
TION.

nr. Underwood's Proposition Ap-
parentIy Very Fair-He Agrees to
Take All the Mills at Price to BE
Fixed by a Committee, the Price
Not BE In Excess of 22O Per Cent.
of the Fair COrt of Replacing the
PrOperty-He Guarantees S5.3OO,-
COO as Working CapitaI-MiII own
ers Want Time to Digest the Prom
Osition.
Charlotte, N. c.. April 2S.-Over 100
men from six states, representing over
100000 yarn spindles, met in Charlotte
to-day to hear the details of the prop
osition of f. l.. Underwood of No. 81
Nassau street, New York, who wishes
to combine 60 per cent. or more of the
Southern yarn mills in a $50, 900, 900
trust. Just before adjournment the
mill men unanimously voted for a reso-
luton reclaring the wisdom of an ANAL
gmation of their interests; and a great
majority of their spinners voted to rec
ommend that the proposal of Mr.. IN
derwood be favorably considered by the
stockholders of the Southern yarn
mills. Mr.. Underwood says he is de-
lighted with the reception accorded
him by the mill men, and he is conf
dent that the big merger will be eff
fected.
At a meeting in the forenoon Mr.. I'M
derwood repeated his proposition.
which is, in effect, that he will agree
to pay to all of the yarn mill owners
price to be agreed upon by a COM
mittee to be selected by the mill own
ers with his approval, but 1t is stipu-
lated that such price shall not be in
excess of 220 per cent. of the fair cash
cost of replacing the property; pay
ment to be made in one-half preferred
and one-half common stock. He in
formed the spinners that he and his
associates were prepared to effect the
combination and We're prepared to put
up $5,500,000 as working capital within
ten days, If need be. Referring to
the Indebtedness of the mills
he stated that any mill could either
pay its debts and the purchaser
would issue the entire value of the
mill in stock; or the purchaser would
assume the Indebtedness and issue
the net value of the mill in stock The
mills in the combination would have
the advantage of having their stock
listed and their sales would be in the
| 1diluo Ol Dnly one SelllUS dBEHEy, mus
reducing needless competition. The
preferred stock, Mr.. Underwood said,
would be Z per cent. cumulative stock
and is not in the nature of lien of a.
mortgage.
Given Until. Jan. Next.
Contracts which were submitted to
the spinners, state that the delivery
of the mills must be made on or before
January, 1903. The mill men will take
these contracts home and announce
their decision after a consultation with
the directors and stockholders of their
various companies.
Despite their vote a number of mill
men questioned the success of Mr.. I'm
derwood's plan. They maintain that it
is new thing and too big to be digest
ed or sanctioned within a twelvemonth.
Yet all the spinners agree in saying
that the yarn mills have been steadily
losing money since December, 1901, and
that If a consolidation of some kind Is
not effected, then many Southern yarn
mills will be forced to close down or be
ruined.
THE yarn men may or may not ac-
cept Underwood's PLAN" said DIR. j. II.
McAden, president of the Southern
Cotton Spinners' Association but
trust or merger is necessary for their
economic salvation"