The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1904-01-06
THE MILL TROUBLE.
The Reorganization Of the Columbia
Mills Ma Now Proceed.
DECISION FILED WEDNESDAY.

DECISION FILED WEDNESDAY.
What the Olympia Mill Manage
menr is Required to Do.
No Receivership for
the Present.
In the United States circuit court
at Charleston Wednesday Judge ST.
monton and Brawley rendered their
opinions in the suits against tie Co.
lumbia cotton mills, which were ar
gued last week, the opinions allowing
the plan Of reorganization Of the mills
to continue.
In the first case, commonly spoken
Of as the bearings suit against the
CRANKY and Olympia mills, which pro-
vided for the Cranky ard lhe Rich
land mills to be recognized as credit
tors of the Olympia, the judges sign.
ed the compromise agreement drawn
up by the attorneys representing the
bearings and the defendants, preFid-
ing for the setting aside Ut so per
cent. Of the mills holdingsaof Olympia
stock, $3.50, 900 in the case Of CRANKY
and S75, 1000 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. s
In the Phinizy suit, for receiver
for the Olympia mills, the court re-
served its opinion on the appointment:
of receiver but will grant the tenn
porary Injunction, unless the defen-s
dants enter bond 20 the sum Of $780,
800, the amount of the holdings@of:
stock by Phinizy and Hull, for the55
performance Of such DEGREES as may
be: ISSUED in the case, which is saeESSs
be given full hearing.
The decision Of the court allows
the plan or reorganization to proceed
andst promoters Of the scheme are
given the opportunity to demonstrate
it's successful working.
The decision in the PhiniZy case
read as follows:
This case comes up on a bill for an
Injunction and receiver, a rule to-:
show cause, the return thereto, and
afidavits filed on both sides. ,sS: -:
The case as made by the bill is that
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 12,4So. and Mrs. Alice S. Hull
eight shares for $500; that before
they would purchase they required;
assurances that the Olympia mills
com pany would never execute q
mortgage OF its property 80 as to
create lien antecedent to the pre-
ferred stock. That this assurance
was given by the production Of a Ger
titled copy Of resolution OF the
stockholders OF the Olympia mills to
this effect fortified by the opinion OF
W. q. Lyles, ESQ.,, counsel for and a
director in the mill company, ds to
tie binding force Of the resolution
and it's enforcement by Injunction
were it violated. Thi;; 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 to
the stockholders and the stockholders
resolved to execute mortgage on all
the property Of the Olympia mills for
the purpose of funding its debts to
the amount of 81, 100000.
The bill does not deny the solyency
of the company. 1t charges gross
mismanagement on the part Of the
directors, all Of whom, but two, have
resigned, and, others have beer, ap-
pointed in their stead.
The return is voluminous. It 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 60 into a detailed statement OF
the atidavitS would be as tedious as Il
would be unnecessary.
1t is enough to say that complains
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
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 un-
less they are protected from loss on
their purchase.
1t is, therefore, ordered, adjudged
and decreed, That temporary in
junction as prayed foc in the bill CO 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 a full hear