The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1903-12-23
THE OTHER SIDE.

a Statement OF the Olympia mill Gas
From the Management.
a RETURN TO TIE COMPLAINT
The Charges Denied and the Matter
Of Common and Preferred
Stock, Salaries and Fees
Are Set Forth.
The charges against the manage
ment of the Olympia mill by Mr.
Leonard Phinizy of Augusta have at
tracted no little attention. Yesterday
afternoon Mr.. William Elliott, Jr.,
representing the Olympia Mills com
pany, served on Mr.. B. L. Abney, at,
torney for Mr.. Phinizy, the return Of
reply to charges in the complaint,
The matter is to be heard before
Judge Simonton next Monday al
Charleston.
In summing up the declarations ir
the return, the following statement
was made yesterday by member Of
the syndicate associated with Mr..
Nhaley in this great undertaking:
In the early part Of 1899 Mr.. Wha.
ley, who had sold a great deal Of cot
ton mill machinery for the large man
ufacturers who had their headquarters
in and around Boston, and who had
acquired their warm friendship,
learned that movement was then on
foot to raise the prices of all cotton
mill machinery from 20 to 80 per
cent, and to change the terms upon
which the machinery would be sold.
Previous to that time it had been the
custom Of these manufacturers to
take preferred stock Of the mills in
part payment OF their machinery. Mr..
Whaley thereupon entered into con-
tracts with these manufacturers for
the machinery necessary to equip a
mill such as the Olympia. These con-
tracts amounted to about sl;059, 900.
Subsequently, the prices of all'cot-
ton mill machinery were raised from
20 to 80 per cent. This was done by
conference of all the manufacturers in
the United States. About the same
time all steel and iron and products of
steel and iron we're increased largely
in price. Steel rails went up from 60
to Is per cent. Mr.. Whaley also in
his individual capacity, contracted for
the purchase Of a tract of land on
which the Olympia was afterwards To-
Gated. He then laid before his asso-
ciates in Columbia the project of or
ganizing the Olympia cotton mill and
represented that the purchase Of the
machinery at that time, to wit, July,
1899, would cost from 5000, 900 to
$500, 900 more than the machinery for
which he had contracted.
The plan agreed upon was for the
company to be organized with a
common stock Of 81, 100000 and an
issue of s500,000 Of preferred stock.
This preferred stock was subsequently,
increased to s750,0o0. 1t was their
purpose themselves to own and con-
troll the entire issue of common stock,
using the preferred stock and the
proceeds Of its sale towards the
purchase and payment for the ma
chinery. The common stock was sub
scribed for by the syndicate and by
Messls. Carey, Bayne & Smith Of Bal
timore.
Seventy-fve thousand dollars was is
sued to Mr.. Whaley in payment for
the increased price of the land, which
had been previously bought by him
in his individual capacity. OF this
amount he divided out all but s26, 900
amongst his associates and $500, 900
was put, into his name for the differ
ence between his contract prices for
the machinery and the prices at which
it could have been bought at the time
of the organization of the company.
OF this amount se3, 900 was turned
over to Messrs. Carey, Bayne & Smith
Of Baltimore, who were helping to
finance the enterprise. The balance
of the stock was never actually turned
over to Mr. Whaley or any one else,
but was held and used for the purpose
of raising money on syndicate notes
for the use Of the corporation. The
remaining 1915, 900 OF common stock
was subscribed for by the syndicate
and subsequently, Messrs. Carey. .Bayne
& Smith, the latter taking and paying
for SJ25, 900 worth.
AS TO THE GRANBY MILLS.
About this time it had become ap-
parent that the CRANKY cotton mills
could not be made success with the
electric power which was then sup
Piled by the Columbia Water Power
company. There were frequent inter
ruptions for entire days and more fire.
quently.sstill the power would not be
sufficient to run her looms and spin
dies up to a proper speed for the whole
OF many days. Her help was dissatis-
fed and the output Of the mill was
altogether unsatisfactory. The COM
pany had entered into q binding con-
tract with the Columbia Water Power
company, who had in their litigation
with the street railway company made
it known that they would seek to en-
join any efforts to supplement by
steam power the electric power which
they were furnishing.
The directors then conceived the
idea that it would be a fair and legiti.
mate contract for CRANKY to subscribe
$3.50, 900 to the capital stock OF the
Olympia if in consideration Of which
Olympia would build a steam plant OF
sufficient capacity to supplement the
water power company's contract with
CRANKY and would enter into some
contract whereby CRANKY would be at
all times supplied with ample electric
power at no greater cost than Woulc
have been the SUPPLY from the water
power company. The directors thought