The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-08-31

Against Overflow They Can Still
Compel, if Not Complete Restitu-
ton, at Least Some Sort of a Settle
ment Which VIII Take Care of
Those Who Invested With Them.
In yesterdays News and Observer
was published the final statement in
the receiver case of the Rockingham
Power Company, which was sold on
July 14th for 81, OOO,0 600. This COM
pany owns Blefett's Falls, the giant
Rockingham, and the development
will now soon be completed with cleo
trical energy sufficient to operate a
hundred cotton mills. The BleWetts
Falls power is a factor second to none
that will give unparalleled impetus to
the industrial growth of the section Of
which it is the center.
In Hampton's Magazine for August
is an article by John l.. Matthews dis
cussing Blewett's Falls. from which the
following excerpts are taken:
Rockingham is a busy little mill
town in southern North Carolina on
Nv ~
Blewetts Fails, a long rapid over
which the river discharges with a
force capable, when gathered behind
a forty-tive-foot dam, Of generating at
low water, probably $4,000 horse
power and of far exceeding that
when the forest reserve is es-
ta%blished. This power lies in the
very center Of a rich cotton man
ufacturing region, and within reach
Of a dozen of the busy and
-rocroco,,c o;tioc of North "a r0lina
and it's neighboring State. Some years
ago the firm of Hugh MacRae and
Company. bankers, Of Wilmington,
North Carolina, observed the value OF
this fall, and as they We're already IN
terested in water power they decided
to develop this one.
When they had bought up the ripa-
ria lands for the dam and big pond,
and had secured a franchise from the
State, they came to New York for
their financial backing. They went the
same old route which | have de-
scribed BY a sort of easy compulslon
they were led to the slaughter. Every
thing was made pleasant and easy for
them.
Sidney Z. Mitchell, whose activities
we have listed, took them in charge
for the Electric Bono and Share Com
pany. c. n. Mason held a little. w. l..
Warner, Tucker and Company, the
Colonial Company, the Federal Con-
struction Company, and Lockwood,
Green and Company-all in one per-
son-ioined in the game which was
gotten up to handle North Carolina
promoters.
Lockwood, Green and Company es-
timated the cost of the whole affair
guess. They sent men there n
made a careful survey for which they
were paid and then they calculated
it on their long experience with sim
liar plants. The figures looked rea~
sonable. so. with his good friends
Mitchell and Warner to help him,
MacRae, for the Rockingham Power
Company, executed a mortgage on the
whole affair to the Knfckerbocker
Trust Company, and issued $2,2O0.-
900 in bonds. They gave so per cent.
preferred stock with every bond and
sold the two at 90 tina is, $1,000 in
bono and $500 in stock for 5000.
MacRae took more tina 81 100000
worth, in fact considerably more than
half the ISSUE, and sold part OF them
to his North Carolina friends and GUS
toners. He had already secured con-
tracts for power which promised in
terest on the bonds, and 10 per cent.
on the preferred stock from the very
start. OF the rest of the bonds $780,
600 worth went to the Electric Bono
and Share Company, who sold them 10
their trade or held them, n 500
OC0 worth to the Colonial securities
The stock cOntrOl went 10
Hugh MacRae & Company, who held
the voting stock. The voting stock,
but not the votes. for Mitchell and
Warner soon had MacRae persuaded
that, as they were all friends toGeth-
er going in on q good thing he should
let them in with him in q voting trust,
until the plant was paying dividends.
First they organized the Rocking
ham Contracting Company to build
the plant. That had only $500 capt.
tai, so it could not be successfully
sued for any large damages. Then they
employed the Federal Construction
Company and Lockwood, Greene ana