The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1908-04-08
WARE SfOALS
MILL CONTEST
Another Hitch Between
Majority and Minority.
ISSUE OF MORE STOCK
Northern Interests Wish to Increase Capi.
tai Half Million. Stockholders
Meeting April d.

tai Hall a Million. Stockholders
Meeting April d.
On the 22d of this month there is to
be meeting of the stockholders of the
Ware Shoals Manufacturing company
at Ware Shoals, which bids fair to be
of an interesting. nature. A lively time
is expected. This meeting is the result
of decision reached by the board of
directors at it's meeting in Washington
city on March ID, at which Messrs. N.
b. Dial and j. o. G. Fleming, of the
local interests, AMI representing the
minority stockholders, were present
Mr.. JOS, II. Johnson, the other director,
was absent.
The purpose of this stockholders
meeting is to increase the capital stock
of the company from $1,000, 900 to
$l,500,O 900, the additional $500, 600 to be
issued as preferred stock. Such reso-
luton was introduced and adopted in
the Washington meeting, and the ap-
preaching meeting is to authorize the
issuance of this new stock. Messrs.
Dial and Fleming vigorously opposed
the measure in behalf of the local
stockholders, representing about $780,
600 of the $l,000,000 stock. But the
resolution was passed over their pro-
test. 1t is stated that Mr.. Dial made
a most gallant fight in behalf of the
local interests, but to no avail. Yet he
is not discouraged, and hopes to win out
IN the end. The grounds of opposition
were as follows:
First. Because the increase of the
capital stock will be in violation of the
agreement adopted when the Messrs.
Riegel were adopted into the company.
The enterprise is now capitalized at
$50 a spindle, and that is sufficiently
high. And, in addition to this agree
ment, it was specifically agreed that no
preferred stock should be issued.
Second. Because this measure was
inconsistent with and directly in viola
ton of the agreement entered into be-
tween the Messrs. Riegel and the mi
nority stockholders. When these capi-
talsts of the North became stockhoid-
ers they agreed TO furnish this capital
and at the same time not to interfere
with existing conditions and methods.
Mr.. DIAL was to remain president at
the same salary and carry out the origi-
nal policy of the company. This he has
not been permitted to do, his salary
having been cut to nominal sum, his
authority curtailed by degrees and fl
nally usurped.
Third Because the issuance of this
additional preferred stock is altogether
unnecessary. The increase cannot in
any way benefit the local stockholders:
rather It will damage their interests
Fourth. Because it is plainly
scheme to squeeze" the minority in
vcstors and depress the value of the
common stock. Already the stock val
ne has fallen, and after this proposed
increase the shares owned locally will,
it is stated, be practically valueless.
For these reasons Messrs. Dial and
Fleming opposed the measure, and will
again oppose it in the stockholders
NEE ing
AS the public already knows, there
majoity and minority investors for
months past, and at present there is a
suit pending in the Greenwood courts
suit instituted against the Messrs.
Riegel by the minority for the recovery
of $780, 600 damages, and demanding the
performance of the contract and agree
ment entered upon. This litigation is
termed suit ''for specific perform
ance," and it's trial will be watched
with much interest, as showing that
the majority have not performed their
part of the contract. Among other
things they are charged with squander-
serving as an example. This was the
building of a $l5, 200 stone mansion for
the residence of Mr.. B. D. Riegel, sec
retary and treasurer. This expendi-
ture was made over Mr.. Dial's protest,
he having authorized $500 for this
purpose. This fine building was occu-
pied by Mr.. Riegel for time, but it is
now vacant, Mr.. Riegel having returned
to New York.
Another matter of which Mr.. Dial
complains is that the auditors report of
the mills condition cannot be had He
asked that copies be sent to the stock
holders; this was denied. But he was
told that a copy might be seen at the
Ware Shoals Office. Upon inquiry he
was told that the reports were not there
but in New York. So no auditors re-
port has been seen yet. Of course this
report would not be an especial valuable
document in the hands of Mr. Dial, but
this fact is cited merely to show the al
legged disposition of the majority toward
the minority.
The state of affairs is deplored, for
at one time it seemed that this Ware
Shoals property would be developed in
to one of the best paying enterprises in
the Piedmont The outcome of the
stockholders meeting and the result of
the litigation will be watched with much
interest.