The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1905-06-28
LUCAS .MILLIKEN
CASE IS ARGUED.
Atfidavits and Counter AL
legations Submitted.
TEDIOUS PROCEEDINGS
Judge Brawley Who Heard the Arguments
is Expected to Render His
Decision i'm 80 Days.

iuS IiShI VI .. NJ. mllllkcn against
w. f.. Lucas to obtain control of the
Laurens Cotton Mills is being pushed
from every standpoint and as persist
| emily resisted by Mr.. Lucas.
The endeavor of Milliken's ATTORNEYS
| is to take the case out of the State
court where the proceedings were first
instituted and to place the matter be-
fore the United States Court. On a
motion before Judge Klugh at Abbe-
vile last week he held the State Court
had jurisdiction and ordered certain al
legations in the Milliken answer stricken
out as being irrelevant to the issue.
The motion was made before Judge
Brawley at Greenville on last Friday
with the view of having the United
States Court assume jurisdiction in
which case a motion to dissolve the in
junction will be made and new cleo
tion asked for. Affidavits were sub
mitted by the Milliken attorneys and
by the attorneys of w. e. Lucas A
synopsis of the S. M. Milliken and w. E.
Lucas offidavits as taken from the Green
vile News is printed below. The other
affidavits are in support of these, except
the affidavit of N. B. Dial which con
tradicts certain allegations of the W.
e. Lucas affidavit.
I'm the Dial affidavit it is alleged
that Dial, j. o. G. Fleming and j. w.
Ferguson, the resident directors of the
Laurens Cotton Mills, knew absolutely
nothing about the loans to the Watts
Mills until Mr.. Lucas stated to Mr..
such use of the companys funds by
Mr.. Hale. Mr.. Dial declares that he
advised Mr.. Lucas to stop it and pay
| the money back at once. He further
says that neither he nor the resident
directors were aware of the purchase
of real estate, of the erection of the
swimming pool, and that they did not
know of the loans until after the meet
ing at Laurens on May Is"
AFFIDAVIT OF S. NJ. MILLIKEN.
"Mr. Miiliken stated that while the
firm of Deering, Milliken & Co. owned
no stock in the Laurens Cotton Mills
certain members of the firm did own
shares as follows:
"S. M. Millken, 91S: G.. II. Milliken.
"a; S. ID. Brewster, 92.
In effect he swore that within the
past IL months President Lucas had re-
fused to cooperate with him in the sale
of the goods; that his firm is the selling
agent for sixteen cotton mills, and that
those properties are not controlled by
his firm; that the uniform charges for
the sale of the product of these mills is
four per cent, except on print cloths,
that rate being three per cent; that
President Lucas has been in the habit
of making large sales of the product
and OF cancelling and refusing to con
firm advantageous sales made by the
selling agents, and from time to time
| has acted against the advice and sug-
| gestions and without the knowledge of
| this deponent and certain of the other
directors in the mill; that for the twelve
| months ending March 81, 1905, accord
| ing to the annual report of the presi-
dent of said mill, the net earnings have
| been the sum of $5,112.O7; and as to
| the said earnings, deponent states on
| of SO, 204 81 for back taxes was properly
| entered as should be done, according to
the report of the public accountant who
| investigated said books, the operations
for the said year ending April / 1905,
would show loss of $4,09313.
| "Mr. Milliken further deposes and
| says that Mr.. Lucas is not safe man
to manage the corporation, and that he
did not hesitate to declare his purpose
to effect change by which new pres
4 ident could be elected. That he says,
\ stock and got proxies from stockholders
who had agreed to vote with him. He
admitted that he had paid 5000 a share
for some of the stock, but not until he
was informed that Mr. Lucas had bought
4 some stock at $3.50 share.
He further alleges that he frequently
made loans to the Laurens Cotton Mills,
E amounting at times to more than quar-
ter of million dollars. Recently,
he continued, President Lucas has
not been giving to the manufac-
/ should have been given, and in con
sequence the product of the corpor-
/ alton has fallen off in quality to con
siderable extent, and the reputation of
the goods so made has been greatly in
Jured, and in consequence thereof many
sales of goods by the Mlliken firm have
been cancelled because of the defects
in, and the bad quality of the goods Sc
manufactured, and deponent states that
in consequence of these matters the rep
utation of the said Laurens Cotton Mills
and the interest of the stockholders has
been greatly injured.
Within the last six or eight months,
Mr.. Milliken alleges, President Lucas
has made loans of the money owned by
the Laurens Cotton Mills TO the Watts
amounting to more than $6d 900: that
from time to time Mr.. Lucas mas caused
the Laurens Cotton Mills to loan to him
self Individually large sums of money,
\ amounting to more than $4,000, this
being without the knowledge or consent
Of the deponent and other directors.
Upon information and belief the depo-
nent further alleges that President Lu-
| cas- has recently made large investments
| in Laurens real estate far out Of the
| needs and demands of the corporation,
| for his personal use; that President Lu-
cas- has declared it to be his purpose to
use other funds of the mill to erect a
large and expensive residence for his
| personal use, which is contrary to the
| bylaws; that one expenditure was for
erection of large stables for the care of
| Mr. Lucas horses, all being without the
| knowledge and consent of the corpora
| ton; that the conduct of Mr.. Lucas has
been condemned by large number of
stockholders. Mr.. Milliken declares
| that since he has been director and
| stockholder in the mill he has not done
one act with view to injure the prop.
erty, his sole purpose being to honestly
! promote the best interests of that cor
7 poration.
'The most important affidavit sub
mitted for the plaintiff was that made
by VIM. e. Lucas, President of the
Laurens Cotton Mills. 1t was very long
and gives an unequivocal denial to
practically every charge made by the
| Millikens and explains certain transac-
tions which were calculated, i'm view of
II Ill Il