The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1904-01-08
THE MILL KO UBLE.
The Reorganiss tsn Of the Columbia
Mills fda Now Proceed.

4 r--e q 49, = =
Mills Ma Now Proceed.
1DEoIsIoN FILED WEDNESDAY,.
What the olympia Mill nranage-
ment Is Required 70 Do. &
No 9Reeeiyership for )
the Present.
In the United States circuit court
at Charleston "Wednesday Judge Sl.i
Imonton and Brawley rendered their
opinions in the suits against the Co
1lumbia cotton mills, which were ar
i gued last week, the opinions allowing
the plan of reorganization OF the mills
to continue. ssss
In the first case, commonly spoken
/ Of as the bearings suit against the
CRANKY and Olympia mills, which pro-
yided for the CRANKY and the Rich
land mills to be recognized as credi-
tors Of the Olympia, the judges sign.
ed the compromise agreem mt drawn
|np by the attorneys presenting the
bearings and the defendants, proyid-
II ing for the setting aside Of SO per
cent. of the mills holdings of Olympia
stock, $3.50, 900 in the case of CRANKY
and $4,000 in the case of Richland
mills, in the first mortgage bonds,
which are to be issued according to
the plan OF the reorganization, the
same to be held by the court, pending
the adjudication Of the claims and
differences between the mills, which
are in process Of adjustment, the mills
to share like all other creditors in all,
further proportionate distribution OF
bonds and settlement OF the pending
claims.
In the Phinizy suit, for receiver
for the Olympia mills, the court re-
served It's opinion on the appointment
Of receiver but will grant the tenn.
porary injunction, unless the defen-
dants enter q bond to the sum OF $780,
500, The amount of the holdings Of
stock by Phinizy and Hull, for the
| performance of such DEGREES as may
be issued in the case, which is now to
be given a full hearing.
The decision of the court allows
the plan or reorganization to proceed
and the promoters of the scheme are
given the opportunity to demonstrate
it's successful working.
The decision in the Phnizy case
read as follows:
This case comes up on a bill for an
injunction and receiver, a rule to
show cause, the return thereto, ano
affdavits filed on both sides.
| Nho a. 4, ~ t..1l e.
the complainants purchased preferred
stock in the Olympia mills from the
agent of the mills in Augusta, that
is TO say, Leonard Phinizy II shares
for Sl2,480. and Mrs. Alice S. Hull
eight shares for $500; that before
they would purchase they required
assurances that the Olympia mills
company would never execute a
mortgage of its property 80 as t.,
create lien antecedent to the pre-.
ferred stock. That this assurance
was given by the production of Ger.
tilted copy of resolution Of the
stockholders of the Olympia mills to
this effect fortified by the opinion OF
w. III. Lyles, Esq, counsel for and
director in the mill company. ds to
| Wiz OAhAihk hotSC VI gtiC
and its enforcement by injunction
were it violated. This having been
shown them, and In consideration
thereof, they paid their money which
went into the treasury Of the com
pany. The bill then charges that
notwithstanding this resolution and
contract on the faith Of which alone
complaints purchased and paid for
their stock, the directors proposed tb
the stockholders and the stockholders
resolved to execute a mortgage on all
the property Of the Olympia mills for
the purpose of funding it's debts to
the amount Of 81, $50, 900.
The bill does not deny the sulvency
of the company. 1t charges gross
mismanagement on the part of the
directors, all Of whom, but two, have
resigned, and, Others have been ap-
pointed in their stead.
The return Is voluminous. 1t denies
the allegation Of the bill as to the
purchase Of the stock from the COM
pany, and denies the validity Of the
resolution and contract under which
| the stock was purchased.
To go into detailed statement Of
the ailidavitS would be as tedious as it
would be unnecessary.
1t Is enough to say that complain
ants -prima facie have made out their
case as to the purchase OF the preferred
stock from the company, the assur-
ances under which it was purchased,
the production Of the resolution Of a
meeting of the stockholders agreeing
not to put any mortgage upon the
property of the mills, so long as any
preferred stock was outstanding; that
| this was the moving consideration for
the purchase by them, and that The
money they paid went into the treas
ury of the company.
Under these circumstances, as the
matter now presents itself, they are
entitled to temporary injunction I'm
less they are protected from loss on
their purchase.
1t is, therefore, ordered, adjudged
and decreed, That temporary in
junction as prayed for in the bill do is
sue, unless the defendant, the Olym-
pia cotton mills, do, within Is days
from the entry of this order enter in
to bond, approved by judge of this
court, to stand to, abide by and per-
form such decree as may be entered
In favor of the complainantS, and each
OF them, as the result OF full hear
Ing of this cause.
The matter OF the appointment of