The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-09-26
to make, he could have no purpose OF
jeopardizing his own stock.
Hedging Against Sales.


at all new, and the friends OF Mr.. Nc
Crary say that if he bought cotton
futures or sold them, it was with the
view OF hedging, and that il he both
bought and sold it was with view
Of regaining the losses that might
have been incurred by hedging against
the sales OF the manufactured pro-
ducts.
1t seems from what can be learned
that at the time OF Mr.. McCrary's
death there was bought on the &C
count OF the cotton mills twelve
thousand bales OF cotton, and there
were sold thirteen thousand bales.
OF course, the purchases and sales
through Lehman, and also J. H. Par
ker, who were the brokers, at differ
ent times, were with evident purpose
to hedge. At best it seems very COM
plicated transaction TO ascertain ex-
actly when the cotton was bought,
and when it was sold, but evidently
the losses were incurred, if they were
incurred at all, through Il cotton
transaction on the sales t were
made.
An Excellent Record.
The friends Of Mr.. McCrary con-
tend that when he took charge of
the mill, which has been five and one
half years ago, the property was
S365,ooo in debt. Most Of this amount
was for permanent Improvements, and
extensions OF the plant, and since that
time, it is claimed, Mr.. MoCrary has
made sufficient money during his ad-
nintstration to pay every dollar Of
this indebtedness and to accumulate
a surplus Of about $4,000, to have
earned during the past five months
$4,000, and to have paid regularly
during his entire administration an s
per cent dividend, and even should
it be true that he did lose money by
not being able to porperly hedge
his cotton goods sales, there should
be no discredit to him because, on pre-
vious occasions, he made money in
this same way.
1t is most gratifying to be able to
say without any equivocation or
reservation that the Newberry Cotton
mill is absolutely solvent, and that
there is no possibility Of this loss i'm
pairing the solvency or credit OF the
corporation.
Absolutely No Debt.
Should every dollar OF the surplus
and the accumulated profits OF this
year be wiped out by these alleged
losses, the mill would still be entirely
free from debt. The capitalization Of
the mill is only 100000, and this rep
resents an actual construction ac-
count OF something more than $780,
900, and it is to be remembered that
the Newberry plant was put up when
construction was much cheaper than
it is now.
The mill is thoroughly equipped
with first-class machinery, and has
never been in a better condition to
earn money for its stockholders than
at the present. Therefore, even at the
worst the stockholders have a mill
that has cost 100000 on conserva-
tive basis, and which is capitalized at
100000 and there need be no appre-
hension on the part OF the stock
holdres or creditors.
Just to show how prosperous the
mill has been the last year, the mill
made $4,000 net. Out Of this money
$4,000 was placed to the credit Of
the profit and loss account; S32, 900
was used to pay dividends; So, 1000
was utilized for new machinery; S6,-
coo was expended on a new school
house and $1,000 was expended On the
Installing OF new cotton distributing
process. The mill has made money
right along since it began operat: IN,
and the surplus account has been in
ming over the SIoo.0o mark great
many years. In 1900 it was S269,ooo,
when a considerable amount was eN-