The Columbus weekly dispatch., 1907-02-21
COMPROMISE HAS
BEEN EFFECTED
THE FAMOUS UNDERWEAR MILL
CASE HAS AT LAST BEEN
SETTLED, AND PLANT
WILL BE SOLD.
Settlement was Effected by Attorneys
Representing the Holders of
the Bonds and Various
Unsecured Creditors.


nearly year. has at last been set
tied, the bondholders having paid off
the claims of the unsecured creditors
and having obtained an order from
the Federal court authorizing them
TO proceed TO sell the property at
public outcry. The underwear mill
is one of the largest industrial en-
terprises in Columbus, and the peo-
pie Will therefore be interested in a
brief resume of the legal battle for
the possession of the property.
When the mill was established in
1 this city in the fall of 1904, the three
local banks-the Columbus Insurance
& Banking Company, the First State
Bank, and the Merchants & Farmers
Bank-loaned the company 100000,
taking bonds protected by a mortgage
on the plant 10 secure the loan. Last
March interest on the loan was de-
faulted, and the First State Bank, as
| trustee, proceeded to advertise a sale
of the property at public outcry. The
sale was advertised to take place on
August 18th, but a few days prior TO
& Company, of New York, and other
unsecured creditors, whose aggregate
claims amounted to about $4,000,
through their attorneys s-Hon z. p.
Landrum of this city, and Hon d.
w. Houston of Aberdeen filed pc
tition with Hon. Jno A. Davis, ref
cree in bankruptcy for the Northern
district in Mississippi. praying that
/ the company be thrown into involun-
tary bankruptcy and that an order
restraining the sale be issued The
case was argued before Referee Davis
in this city on August 18th, Messrs.
! Z. p. Landrum and d. w. Houston
! having appeared for the unsecured
creditors, and the three local banks
having been represented by their reg
ular attorneys Col. William Baldwin
having appeared for the First State
/ Bank, Messrs Belts and Sturdivant
for the Merchants and Farmers Bank,
and Gen. E. T. Sykes for the Colum-
| bus Insurance & Banking Company.
After hearing argument in the case,
Referee Davis adjudged the company
insolvent and Issued an order restrain
! ing the sale of the plant The case.
was appealed to the United States
district court, and Judge Niles sus-
tanned the order of the referee in
bankruptcy, refusing TO allow the.
sale to proceed. as prayed for by the,
appellants,
After the Federal court had de-
cided against the banks, Messrs. Bas-
kin and Miller, of Meridian, became
interested in the case, having been
employed by the First State Bank.
After several conferences between at
torneys representing the sevral Iiti-
gants, a compromise was effected by
the terms of which it was agreed that
Mr.. j. NJ. Morgan who is a member
of the First State Bank directorate.
would purchase the claims of the un-
| secured creditors. The money was
paid over last Wednesday, and Judge
| Niles, of the Federal court, immedf-
ately issued an order authorizing the
holders of the mortgage to proceed
with the sale of the property.
In pursuance to the order issued
by Judge Niles, the First State Bank
as trustee has advertised a public
sale of the property to take place on
Wednesday, March goth, on which
date the plant will be sold to the
highest bidder for cash
The people of Columbus are to be
congratulated upon the fact that this
long continued litigation has at last
ended. The settlement of the case
means that a new company will be
organized, and that the mill which
has been idle for nearly a year, will
resume operations. The plant is a
valuable one, and, properly managed,
will, it is believed, pay a satisfactory
dividend on the amount invested.
The mill employs more than one hum
dred hands, and when operations are
resumed the wages received by these
operatives will put quite large sum
of money in circulation each week.
The enterprise is located in East Co
lumbus, and when the fires are start
ed and the machinery resumes it's
magic hum, that fiourishing suburb
will be more prosperous than ever
before.