The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1904-01-08
THE MILL JK IJBIE.
The Recrganissas assn Of the Columbia
Mills sa Now Proceed:
DEoIsIoN F1LEp wnDNRsDAY.
What the Olympia Mill Manage
ment Is Required to Do.
No Rcceiyership for S.
the Present.

the Present.
In the United States circuit court
| at Charleston Wednesday Judge ST.
monton and Brawley rendered their
opinions In the suits gainst the co.
llumbia cotton mills, which wefe ar
gued last week, the opinions allowing
the plan of reorganization OF the mills
to continue. 4, &. :,5 & S.
In the first case, commonly spoken
of as the bearings suit against the
Cranky and Olympia mills, which pro-
lsyided 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
lup by the attorneys representing the
bearings and the defendant proyid-
ing for the setting aside of so per
cent. OF the mills holdings Of Olympia
stock, S150,O00 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 Tie 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 aud settlement OF the pending
claims.
In the Pbinizy suit, foT receiver
for the Olympia mills, the court re-
served its opinion on the appointment
of a receiver but will grant the tenn.
porary Injunction, unless the defen-
dants enter a bond to the sum of S2O,-
800, 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 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
its successful working.
| the decision in tine Phinizy case
read as follows:
This case comes up on O bill for an
injunction and receiver, rule to
show cause, the return thereto, ano
atf1dayits filed on both sides.
The case as made by the bill is that
the complainants purchased nreferre1
stock in the Olympia mills from the
agent Of the mills In Augusta. that
Is to say, Leonard Phinizy II shares
for Sl2.4S0. 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 a 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 a
director in the mill company, dis to
the binding force of the resolution
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
1
the stockholders and the stockholders
resolved to execute mortgage on all
the property of the Olympia mills for
che purpose Of funding its debts to
the amount Of Sl,75O,OOO.
The bill does not deny the solvency
of the company. 1t charges gross
mismanagement on the part of the
directors, ali 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 a detailed statement OF
the atfidavts would be as tedious as Ii
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 a temporary Injunction I'm