The Union times. [volume] (Union, S.C.) 1894-1918, 1905-09-29

a running horse in the shafts, and
load of passengers aboard, it is
not at all safe to be bothering with
the driver or to throw rocks at the
man with the lines in his hands.
He is going to do the very best pos
slble to save the passengers and
himself. That is the situation here
in Union relative to the Union and
Buffalo Cotton Mills. 1t is serious
and there is no purpose to compli-
cate it.
The desire is to give such infor-
nation as is available at this Juno
ture that will be strictly in accord
with the facts, without holding back
thing that will explain the situa-
ton here as it really is, as far as
can be ascertaincd.
A great deal of wild and sensa-
tional talk has been afoat. The
situation here is remarkable in many
ways, and perhaps the most strik-
ing feature is how very little is
really and accurately known by
those who ought to know, as we'll as
by those who think they do know.
THE GROWTH OF UNION.
One can hear almost any kind of
talk and the widest sort of rumors.
Ten years ago Union was bit of a
village of 1000 souls. Today, as a
result of the cotton mill develop
ment, of which Mr.. Thos. c. Dun
can was the pioneer, it is flourish
ing city of over 10, 900 people, with
half dozen cotton mills.
1t is not at all unusual for q cot
ton mill to have considerable bills
payable and large floating debt,
but it is unusual for mills to have
loss account of more than one
half million dollars in less than
years. time on cotton.
AS a matter of fact the directors,
the officers and others are really ig-
norant of The real and exact condi-
ton OF financial affairs with refer
ence to the Union and Buffalo Cot
ton Mills, but from all that can be
gathered, with due regard to con-
servatism and at the same time Civ
ing the conditions as they exist, the
Indebtedness of the two mills, out
side of the stock obligations, aggre-
gate more than two millions of dol
lars, and is nearer the three-million
dollar mark than it is the two-mil-
lion dollar mark. This is, it might
be stated, about in the proportion
of two to one, that is, $4,000, 900
of debt on. the Union Cotton Mills
and 81 900, 900 ON the Buffalo Mills,
with an obligation of considerable
sum from the Buffalo Mill to the
parent mill, the Union Cotton Mill
of this amount.
Of this indebtedness, which cov-
ers money borrowed for current op-
erations, machinery and losses,
more than $500, 900, it is estimated,
has been lost on cotton investments,
and some figure that the cotton
losses will easily aggregate as much
as $3.50, 900.
EXACT FIGURES NOT TO BE HAD.
The exact figures as to the amount
of the indebtedess, as we'll as the
amount of cotton losses, cannot be
definitely ascertained, and no one
here will venture an expression un-
til the professional auditors, Messrs.
Menzies, Robinson & Co., of New
York, make their official report to
the stockholders on October 3.
AS has already been stated, the
stress of this situation was brought
about by the heavy losses in cotton
and fluctuations, and whatever may
be said in blame it is also to be said
in extenuation that whatever profit
was received, had there been
any, would have gone to the corpo-
rations, just as the losses were
charged against them. From what
1 can understand President Duncan
does not regard that he has done
anything wrong in going into the
cotton market as he did, and he
simply holds that he made an error
in judgment in thinking that cotton
would go down instead of going us,
and it was because of this error OF
judgment that the corporation, in
which he is the largest individual
| stockholder, lost so heavily by the
cotton transactions which he di.
rected.
HE WAS NOT ALONE.
Mr.. Duncan did not think that
cotton would go over 7 1-2 cents fol
spot cotton between January 1 and
the first of this season, and it was
because of his conviction that cotton