The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-06-20
THE oorroN MILL MERGER.
Good for the Fries Conf
soifdation-R Re- asons for the Moxe.i
ne"nrknhie Condition of Youngl
Holton.
Correspondence Of The Messenger
Greensboro. ". c.. June Il

TWO bly, rival syndicates to OBJ
tain control OF the entire southern
yarn cotton milling interests.
In Der Of last year. Mr.. II. e
Fries, a large capitalist OF Winston
salem, this state. and largely inter
ested in corporate property, such as
banking electric street railway. light
and power properties, n one OF the
largest owners OF cotton and wooden
mill properties In North Carolina and
virginia, conceived a plan by which
the immense waste in separate ad-
mihlstratiol Ct Individual properties
Oh the numerous cotton mills of the
south, with Sc conglomerate cost of
individual freight, fuel. sale and out
put expense could be lowered. In con-
junction with ether large mill owners
and capitalists Of the south and strong
financial backing and support from
New York and Boston parties he set
about arranging a deal whereby all
these properties could be merged in a
common administration and expense
| pool arrangement, so that a minimiza-
ton of cost in all departments could
be effected. The reasons for this mer-
ger or consolidation are trite in the
business world as to other properties,
NAS VII NC 4oolld III
teresting to New England mill inter-
eSts. Briefly told the argument is
sound. cosent and convincing to
southern mill ilen as follows: Several
years g southern mills were making
a great profit on the investment. SO
much SO that new mills were constant
ly being built out Of dividends from
old ones. The New England mills were
said to be suffering from the effort to
compete with the output of these mills
which had cheaper labor, longer hours,
better climate, cheaper fuel. freights,
salary accounts and administrative
a rolls. For the past two years, how.
ever, it has been discovered that for
some cause, with all of these disad-
vantages the New England spinnersI
have reversed the conditions and are
giving the southern properties a life
n death struggle. investigation
showed that the New England genius
which always masters trade conditions
when put 20 the test, a devised a
community Ot interest plan whereby
savings effected in other respects
more than balanced the natural adj
Vantages which the southern mills had,
in regard to the cheaper rates of labor.
The Fries meraer means nothing more
nor less thar a legitimate effort by
means of Il ike consolidation and conn.,
munity of ownership n control of
SOuIleIH yGIi SpllllllllS DIOptI lISS "
again give them the advantage of
equal modern business economics and
methods as their eastern brethren,
with the Oil advantage restored of
better natural conditions of labor, eX-I
pense of raw material. contiguity to
product, Llin ate, ETC., thus shifting the
burden Of competition from their
shoulders on TO those Of the east
again.
1t is learned that in the consumma-
ton Of this deal, the promoters have
been compelled TO buy several proper
ties outright, but that in most instances
the merger scheme, with pooling of
part stock, REISSUE of other, and sub
stitution OF common stock, ETC., has
been considered necessary or indeSpen-
sible to the success Of the movement.
1t is an immense undertaking., but
it is reliably stated that it's fruition is
absolutely essential to the continual
ton Of sue .:ssful operation by most
of the solvent southern mills, and the
announcement o. its perfection may be
expected any Cay. Prominent in the
advancement of the enterprise are
Messrs. FIRES Brothers. of winston
Salem; A. w. Haywood and DR.. Laird,
large millers OF Haw River; J. H. Holt,
of the Burlington mills, and other own
ers of the largest mills properties in
Georgia, SoCth Carolina, labam and
Virginia.
Another merger scheme was COM
menced in competition with the Fries
plan above detailed, by F. L. Under
wood. a successful. New York promot-
er, who IN conjunction with Leonard
PaulSon, of New York, has been very
busy in tn south for a month old
ing meetings with mill men, a great
many Of whom have entered into an
agreement to so into another form of
| cOnCOlldQt1ln moro in tho nature of a
pot luck trust" arrangement, where
by the Underwood syndicate is to con-
troll so per cent. of the holdings, the
members o. each corporation retain
in 40 per cent
1t is said kat this scheme, while to
some extent interfering with the COM
plete merger contemplated by the
Fries original plan, will not seriously
injure the success of the latter, as the
properties embraced in it are only Of
the gilt edge and strong financially
backed enterprises. A very prominent
member OF the cotton mill fraternity
in speaking sor time ago of the rival
wood undertaking because he hoped
thereby to sell out d losing business
at a good price.
United States District Attorney Hol-
ton was telling me some days ago of
the remarkall lie condition Of his
nephew, A. E. Holton,- Jr, who was
injured near High Point some weeks
ago by Jumping out Of the caboose OF
a engine, striking upon his
head. and escaping death by a miracle,
as the engine vas wildly careering at
the rate OF 4 mile a minute. The
young man was removed from Lexing-
ton to his ON in Yadkin county
Wednesday,. he seems to nave recov-
cred so far as any physical ailment Is
| concerned, but Mr.. Holton says he
does not nave any recollection what
ever of the catastrophe except. that
he quietly relates it as an attack up
on him by three men who were so
much stronger than he, they won the
fight.
The other day, he had written out
the name OF the engineer OF the engine
several times, and was looking over 1t,
holding it in his fingers and closely
scanning tie m he had written in
a neat hand, spelt all right and pune
tuated properly. Finally he passed the
slip over To his uncle and said, DO
you know who that man is, and why x