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

Mr. Whaley. but it was used in pay
ment for the machinery with which
the mill was equipped and as a matter
of fact the company received pay To-
every dollar Of the preferred stock at
par.
THE MATTER OF SALARIES.
AS to the salaries for Olympia in
the early part of 1902 all of the man.
aging officers and directors having up
to that time served without compen.
sation and it appearing by the books
Of the company tnat it was making
money at a rate which would Justify
it if salaries were fixed aggregating
S26, 900, which included the president,
the vice president, finance committee,
the secretary and treasurer and the
general manager and the attorneys OF
the company. These salaries by the
terms of the resolution were to con-
tinue only so long as the earnings OF
the company justified their payment
and as a matter of fact they were dis
continued in the early part of the
year 1903, as soon as it was ascertain
ed that the company was not making
money.
1t is not true that Mr. Whaley or
his firm were paid $4,000 or any
other large amount for the prepara-
tion of the plans and the supervising
as architects the construction Of the
mill. They were paid less than one
per cent, while the minimum charge
for such work by any competent mill
engineers would be two per cent.
Messrs. ". B. Smith Whaley & Co.
did this work for less than half Of the
usual charge because of their interest
in the enterprise. The total sum paid
them was only $3.50, which includ-
ed their services in supervising the
construction of the Mills Avenue store
and the Mills stables, all the opera
tives' houses and doing all the grading
and other work around the premises
as well as the work on the Olympia
mill itself.
MR.. PH1NlZG S COMPLAINT.
The following is the amended COM
plant made by Mr.. Phinizy under
date of Dec. 7th:
(a1 Complanants are informed and
believe that W. A. Clark, W. B.
Smith Whaley, W. G. Childs and W.
H. Lyles, directors of said company,
prior to and 1T the time of building
the Olympia mill, constituted them
selves syndicate or body of promo
tiers and offered their services IN Or
ganizing a company of which they
were stockholders and directors, had
issued to them and received three
hundred thousand $500, ,000) dollars
of the common stock of the said
Olympia mill, which they issued to
themselves as a bonus, and for which
nothing was paid by them. into the
company for said stock, but for the
purpose of making the books balance
there was an increase Of the nominal
value Of the plant as ar. Offset to the
issue o. this unpaid stock: said bonus
was gift without consideration,
illegal, void and contrary to the char
ter of the said company, and was con-
cealed from the stockholders until
after the filling of this bill, for the
services of said promoters consisted
only in the usual efforts of placing OF
selling the stock, and there was no
consideration moving from such pro-
moters to the company, and that the
fctious asset $500, 900 in amount, gave
apparent deceptive value to preferred
stock and helped to deceive complain
ants into the purchase Of the same.
CD Complainants further allege
upon information and belief that the
statements issued by the company
under the direction Of the directors
are incorrect and convey an erroneous
representation in that the lists OF
assets so prepared makes it appear
that the company owned and held
large blocks Of stock of the value set
out in the statements: that upon an
examination of the itemized list and
assets it appears that these stocks were
utterly and absolutely void and worth
less, being the unissued stock of the
company itself on which no subscrip-
ton or other payment had been made,
and which had no value beyond that
of the paper and ink upon which they
were printed; that said stock carried
as such assets being - shares OF un-
issued stock of the Olympia mills
and valued at s. in the statement
prepared under the authority OF the
directors and issued to the public and
on both of which the preferred stock
of complainants were purchased.
SERIOUS CHARGES.
(c) ComplainantS further allege,
upon information and belief, that the
said board Of directors have in all
respects valued their duty as officers
and put their interests as individuals
far above and beyond their obligations
as directors. That contrary to law
and good conscience, they have made
COIlU1dClS HlCll ANo~A
lv, in each of which case~the company
was damaged and the said directors
greatly benefited: that although the
said W. B. Smith Whaley was select
ed as such president because OF his
supposed ability skill and experience
as cotton manufacturer, mill engineer
and expert and paid salary therefor,
and as such bound to give his time,
attention and labor to the company in
consideration of the salary paid, and
that contrary to law and objections of
officers, he charged the company the
sum of $50, 900 for plans and speciica-
tions Of said mill, which sum is not
only Illegally paid, but far in excess
to the value Of his services.
Cd Complainants further charge
that they only learned Of the facts
hereinbefore set out in the three pre-
ceding paragraphs within the last 10
days, and that Immediately thereupon