The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-04-25
HIS HEARERS APPROVE
Over a Hundred Present From Six
Different States
THEY REPRESENT 10000 YARN sPINDLES
The Majority Vote to Recommend That the Pro-
position be Fayoraby Considered by
the Stockholders of South
ern Yarn Mills.
ern Yarn Mills.
(By the Associated Press.)


Charlotte, N. c., April 23.-Over one
hundred men from six States, represent
ing 700 900 yarn spindles, met in Char
lotte today to hear the details of the
proposition 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 $60,0O0,0OO
trust Just before the adjournment the
mill men unanimously voted for a reso-
luton declaring the wisdom Oh an
ANAL gamation of their interests, and a
great majority of the spinners voted to
recommend that the proposal of Mr..
Underwood be favorably considered by
the stockholders of the Southern yarn
mills. Mr.. Underwood says he is de-
lighted with the reception recorded him
by the mill men, and he is confident that
the big merger well be effected.
At a meeting 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 committee to be
selected by the mill owners with his
approval, but it is stipulated that such
price shall not be in excess of 220 per
cent of the fair cash cost of replacing
the property; payment to be made in one
half preferred and one half common
stock. He informed the spinners that
he and his associates were prepared to
effect the combination and were prepared
to put up $5,500,0O0 as working capital
within ten days if need be.
Referring to the Indebtedness of the
mills he stated that any mill could
either pay it's 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 hands of one sell
ing agency, thus reducing needless COM
petition. The preferred stock, Mr.. I'm
derwood said. would be per cent cumu-
lative stock and Is not in the nature OF
a lien or mortgage.
Contracts which were submitted to the
spinners state that the delivery of the
mills must be made on or before Janu-
airy, 1908. The mill men will take these
contracts home and announce their de-
cision after a consultation with the di-
rectors and stockholders of their various
companies.
Despite their vote, a number of mill
men questioned the success of Mr.. IN
ledwood's plan. They maintain that it is
new thing and too big to be digested
or sanctioned within a twelve month
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 eff
fected, then many Southern yarn mills
will be forced to close down or be
ruined.
1.-THE yarn men may or may not ac-
cept Underwood's plan," said DR.. J. II.
McAden, president of the Southern Cot
ton Spinners Association. "But a trust
or merger is necessary for their econom-
ic salvation
Among the mill men present were e.
A. Morgan, of Double Shoals; J. M.
Alfred, of Granite Falls; W. M. San
ders and J. o. Ellington, of Smithfleld;
r. L. Groome, of Asheville; T. w. Plat,
of Huntsville, Ala; J. F. Williams, of
Shelby; c. E. Graham and j. H. Nor
gan, of Greenville, s. c.: E. H. Will
Hanson and Walter Holt, of Fayette-
Nllie, H. w. rFeeIlldu anu Il. w.
ply, of Newman, Ga; A. P. Rhyme, of
Mt. Holly; T. d. baltimore, of Buffalo;
A. C. Miller, of Shelby: r. S. Rein
hardt, of Lincolnton; H. F. Shenck, of
Iawndale; d. M. Carpenter, of Maiden;
]. E. McRae, of Laurinburg; z. p.
Moore, of Morganton; J. E. Sheriff., of
Mooresyille, j. j. Littlejohn, j. L. Nc
Whittier and w. II. S. Harris, of Jones'
vile, S. c.; ]. p. Leak and H. S. Led
better, Of Rockingham; P. S. Baker, of
Kings Mountain; J. c. Smith, of New
ton; j. G. Morrison, of Mariposa; j. f.
McNair, of I4aurinburg; r. e. Royal,
of Wake Forest; ]. S. Coffey, of Colds
boro; P. r. Jones, of Florence, Ala. j.
c.. Gregson, of Siler City; L. D. Tyson,
of Knoxville, Tenn; w. H. Morrison of
Laurel Hill; r. r. Fairfax, of Roanoke,
Va.