The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-12-18
=sOME 5','l N E
fraud and Mismanage geMe :ts Of Large
.sy Sums Of Money rs SIS.
IN NEUTRALITY-SUSPICIOUS. s MATTER. {
L l Is Alleged that the Dire ctors Voted
themselves 8 Million. Dollars Fl 4. & 1
Y -; Worth OF Mill y stock ri sSs5 IS
FREQ orCos,t,.

os. "a aug usea vs.. tue Oly mpla COGtJn
Mills et.s al. OF Columbia, which was
,iled in the United States court for
South Carolina "a little over month
ago, has developed into two cases wi th
several interyentions In which the
president Of the Olympia Mills, the
Granny and the Richland Mills, all OF
Columbia, and the board OF directors.
are charged With fraud and misman-
agenhent Of the funds OF: the mills. "
The petition of the two Augusta
plaintiffs sels out substantially that
In 1889 the board Of directors of the
Cranky and Eich!an,i Cotton Mills
was composed OF w. B. Smith Whalcy
as president and w. A. Clark, vice.
president; Wm. b. Lyles, VIM. B.
Childs, Geo. a. Shields, VIM. b. Low
renee, Robert ". Shand, J. Sumter
Moore, and w. II. Rose; that In 1899,
about July or August, this board en-
tered into q scheme for their own per
sonai benefit and advantage and profit
60 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 30 diverted and such money as
they could obtain from the public by
thns ho!sterins mr the credit of tic
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 3, 1899 with
a capital stock Of s1,50O,00O.
The Phinzy petition charges that
thestatemeiits issued In July a show!
ing was made that the Riohiand mills!
had a surplus of 1926, 1000 and the
CRANKY a surplus Of $3.50, 900 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 yrecei wing a SAL
airy OF $50, 600 q year as president.
They further charge that $3.50, 600
that $50 ,oo6fn 6Slf ds6satare ertifis6tss
we're issued for the purchase Of ma;
chlnery. They set out that in this
way 81 ,875, 1000 was raised with which
to build the Olympia mill, and that
the Sl,000,000 in common stock which
they charge has been voted to the
board Of directors, was issued aud
voted to them without cent having
ever been paid for 1t. Is is declared
that when the s750,OOO preferred
stock was issued statement was
made that the 81 900, 900 in common
stock had been paid into the treasury
when, as matter of fact, none Of it
haG been paid In.
The details OF the issue of common
stock, which they contend was voted
fraudulently to the board OF directors
Is described as follows:
That w. 9. S. Whaley purchased
piece OF land In his own name and
sold 1t to the corporation for $4,000
In common stock Of the company as q
bonus Oh the purchase. That 5000, 600
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 sl25,000 par value Of
the common stock was issued TO
syndicate" composed Of the board Of
directors and Carey, Bayne s. Smith,
a commission concern of Baltimore.
That the 1925, 1000 common stock SO
issued to this firm was secured by tine
notes of that firm, which they believe
have never been paid. That S250, 900
common stock was afterward issued to
the Cranky and 1926, 200 Of the same
stock issued to the Richland mills.
That after the stock was so issued 1t
was divided among the directors and
syndicate so that now the holdings OF
the Olympia common stock is as fol-
lows:
w. B. Smith Whalcy. ..s 432, 900
carey, Bane u Smlth...... $4,000
j. S. Moore, trustee. ~. 100, 900
w. a. Clark. ........... $4,000
j. 5. Moore. .,.......... $4,000
w. II. Rose. $4,000
Geo. a. Shields Is. 600
w. U. ChlldS. ..... $4,000
w. r. Lowrance. 1000
". II. Lyles. $4,000
Rubt. III. Shand I. $4,000
John u. Carey. 81, 900
TunStall Smith $1,000
y