The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1904-01-08
THE NH. j + 10 BILE.
The Rsorg ;aon Of the Columbia
Mills ne Now Proceed. Il
DEcrsIoN FILED WEDNESDAY.
What the Olympia Mill Manage.
ment 10 Required To- Do.ss s..
No Receiyership for 81 I
Present.

the Present.
In the United States circuit court
at Charleston Wed nesday Judge ST.
4. monton and Brawley rendered their
opinions in the suits against The Co.
|lumtia cotton mills, which were ar
gued last week, the opinions allowing
the plan OF reorganization OF the mills
to continue. Il
In the first case, commonly spoken
of as the Bearings suit against the
Cranky and Olympia mills. which pro-
yided fol. 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 representing the
bearings and the defendants, provid-
Ing for the setting aside of 50 per
cent. Of the mills holdings of Olympia
stock, Sl500 600 in the case of CRANKY
and $4,000 in the case OF Richland
mills, n 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 a 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 bond to the sum of S20,-
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 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
its successful working.
The decision in the Phinizy case
read as follows:
Injunction and receiver, a rule to
show cause, the return thereto, ano
atildavits filed on both sides.
Tie case as made 10y tine biii is that
the complainants purchased prcferre
stock in the Olympia mills from the
agent of the mills in Augusta. that
Is TO say, Leonard Phinizy II shares
for S12. 4S0. and Mrs. Alice S. Hull
leight shares for $500; that before
they would purchase they required
assurances that the Olympia mills
company would never execute a
mortgage of it's property 80 as t.
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. II. LyleS, Esq, counsel fer aud a
director in the mill company. DIS to
the binding force of the resolution
and it's 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 r
their stock, the directors proposed IL,
the stockholders and the stockholders
resolved to execute mortgage on all
the property of the Olympia mills for
the pulpOs Of funding its debts to
/ the amount Of Sl,750,0OO.
The bill does not deny the solyerlcy
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 20 into a detailed statement of
the ailldavits 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
n fxN.o f<>,