The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-09-26
LOSSES At BUFFALO
And UNION MILLS
SAID TO BE PROBABLY OVER A
MILLION DOLLARS.
AEmy Reports-Resu1t of Speculation
In Futures and Spot Cotton.

,i1Ic%EEllie News OF Sullu0E
As The record is being examined,
4he iul story OF the Union Cotton
mills trouble is coming to light and
when this is formally made public the
sensation will be even greater than
thaf in Columbia when W. B. Smith
Whaley was forced to relinqulsll con-
s:7ol Of the magnificent properties on
She Congaree. While the new man.
=ager5 are silent, it is said that PreSi-
deat Thomas C. Duncan was short
more than 10000 bales. and the man
who deals in cotton can realize the
extent OF this transaction.
Tre Greenville News is in posses
sion OF numerous facts concerning
zhe situation, but for obvious reasons
st is best perhaps that these be kept
out Of print. The truth will be known
IN time Yesterday a week ago Mr..
Duncan went to Washington to meet
representatives OF the Fletmanns, Of
New York, who have been putting up
his ma-gi $. He arrived in Wash
iagto: junday morning and left for
home, refusing to go to New York.
Later special meeting Of the di-
-1ec.o-s was held at which E. w. Rob-
-ooIo II
published in this newspaper yester-
day that the bylaws had been chang
ed at the special meeting Of the di-
r1ectors, and while it could not be
.gearned at first what changes were
made, it is since learned that it af-
1ected the Office of president and
treasurer. Heretofore, the Two places,
as in other mills, have been consoli-
dated but at Union and Buffalo mills
they were divorced, Mr.. Robertson
having entire charge of the finances.
while Mr.. Duncan is president only
IN name. In other words, he is prac-
tically out, and it is said tat he will
he so in fact Just as soon as the stock
holders can meet on October 3.
The first reports had it that the
amount involved by speculation.
which was carried on in the name of
the mills, was 100000. Other re-
ports have it that the losses will ag-
gresate 81 100000. The amount OF
cotton short by Mr.. Duncan would
Indicate that this latter figure is more
NEARLY correct.
Mr. Robertson and the executive
committee, composed OF Messrs.
Fleitmann, Law and Winchester, will
really have charge of the two mills,
;buf the understanding is that Mr..
Robertson will be in control hereafter.
The first plan was to have receivers
x1ooinpd, but Mr.. Duncan and his
Onion friends successfully resisted
tf;at ceffort, and the new treasurer and
the executive committee are acting ap-
parently'as such.
The creditors are doing everything
possible TO lit che mills out OF the
:ao2e into which they were thrown by
cotton speculation. 1t is believed
shat Nj Duncan speculated more in
spot cotton than in futures, although
he evidently dealt in both. There is
:nuch local interest in the plan which
the creditors will adopt, as al least
, one creditor resides in Greenville.
The whole situation is so terribly
mixed that it will require the services
of able financierS and expert ac-
countants to get heads and tails Of the
situation. One mill was heavily in
iebt to The other. and there is con-
stant talk OF ''kiting" and other things.
Indeed, complete dem oralization has
swept over Union and the Piedmont
and much concern is felt. as it is
feared that the credit OF the cotton
mills in general will be hurt in the
east. When it is known, however,
that the spiuners car make money
Between the price OF the raw product
and the sale OF the goods, it would
scer7 that there is no further sense
5n speculation, further than to hedge
and thereby protect the mills against