The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1903-12-16
SOME PLAIN TALK.
Fraud and Mismanageme, 1t Of Large
Sums Of Money
IN TIE OLYMPIAMILL MATTER.
1t Is Alleged that the Directors Voted
Themselves q Million Dollars
Worth Of Mill Stock
Free of Cost

| Themselves 8 Million Dollars
Worth Of Mill Stock
Free Of Cost.
The petition of Leonard PhinZy ct
al. of Augusta VS.. the Olympia CoUt n
Mills ct. al. OF CoIum bia, which was
filed in the United States court for
South Carolina a little over month
ago, has developed into two cases with
several interventions in which the
president OF the Olympia Mills, the
Granby and the Richland Mills, all o.
Columbia. and the board of directors,
are charged with fraud and misman-
agement OF the funds Of the mills.
The petition Of the two AuguSJs.
plaintiffs sets out substantially that
in 1889 the board Of directors CT the
Cranky and Richland Cotton Mills
was composed OF W. B. Smith Whaley
as president and W. A. Clark, vice
president; VIM. II. Lyles, Wro. b.
Childs, Geo. A. Shields, VIM. B. Low
renee, Robert W. Shand, ]. Sumter
Moore, and ". II. Rose; that in 1899,
about July or August, this board en-.
tered into scheme for their own per
soual benefit and advantage and profit
to obtain charter for and to erect
the Olympia Cotton Mills, which this
board obtained as promoters without
any cost to themselves practically all
the stock Of the new mill, and in
which they secretly and fraudulently
diverted the assets of the Cranky and
Richland Mills into assets Of the new
mill, with which they would build
and equip the new mill with the
money so diverted and such money as
they could obtain from the public by
thus bolstering up the credit Of the
new mill, enabling them to realize for
themselves profits from the new mill
which they would cause to be issued
to themselves and thus have control
and management Of the new mill.
The charter for the Olympia mills
was obtained on August 8, 1899 with
a. capital stock Of sl,500,000.
The Pninzy petition charges that
the statements issued in July show
ing was made that the Richlano mills
had surplus ot s125,000 aud the
Cranky surplus of S250,00G and
charges that the board Of directors
diverted this surplus from the two
mills into the Olympia mill common
stock; that w. B. Smith Whaley was
voted $500, 900 worth Of common stock
Of the Olympia mill for valuable SER
vices in purchasing machinery, for
which service he was receiving sal
ary Of $4,000 a year as president.
They further charge that s750,000
preferred stock was issued and sold;
that s75O,000in debenture certificates
were issued for the purchase of ma
chinery They set out that in this
way s1,S75, 900 was raised with which
to build the Olympia mill, and that
the 81, ,000,0 900 in common stock which
they charge has been voted to the
board Of directors, was issued aud
voted to them without a cent having
ever been paid for it. Is is declared
that when the s750,000 preferred
stock was issued a statement was
made that the 81, 900, 900 in common
stock had been paid into the treasury
when, as a matter Of fact, none of it
haG been paid in.
The details Of the issue Of common
stock, which they contend was voted
fraudulentlv to the board Of directors
is described as follows:
That W. 9. S. Whaley purchased a
piece OF land in his own name and
sold it to the corporation for s75, 900
in common stock of the com pa1y as a
bonus Cd the purchase. That $500, 900
Of the common stock was voted to
Whaley for valuable services as above
described and from refraining from
accepting from the sellers a secret
commission for himself on the pur-
chase. That sl25. 600 par value Of
the common stock was issued to q
syndicate" composed Of the beard u
directors and Carey, Bayne & Srnita:
commission concern Of BalGioore.
That the $3.50 common stock so
issued to this irm was secured oy the
notes Of that firm, which they believe
have never been paid. That S25o, 900
common stock was afterward issued TO
the CRANKY and sl25,000 of the same
stock issued to the Richland mills.
That after the stock was so issued it
was divided among the directors and
syndicate so that now the holdings Of
the Olympia common stock is as fol-
lows: