The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1911-11-23
SEEKS TO ENJO|N
MILL MERGER
JUDGE SMITH HANDS DOWN ORDER IN.
COTTON MILL CASE
ITS EFFECT ON MERGER

- ~ oN UIIULk
Minority Stockholders, Opposed to
Consolidation of Maple, Dillon,
and Hamer Mills, Secure En-
Joining Order.
An order was handed down by
Judge Smith in the u. S. Court at
charleston last Saturday restrain
ing the Dillon, Hamer and Maple
cotton Mills from forming a mer-
ger. 1t will be remembered that
some months ago it was announced
that President Hamer was seeking
10 merge the three mills into one
large corporation and pursuant to
the usual notice the stockholders of
the several mills met at Dillon and
voted their unanimous endorsement
OF the plan of organization as pro-
ever, J. II. Lane & Co., of New
York, former selling agents of the
mills and small stockholders, gave
notice of their intention to op-
pose the proposed merger, and a
nearing was had before Judge
smith at Charleston last week which
resulted in the granting of a tenn
porary order restraining ma
Jority of the stockholders from car
rylng out the plan of the proposed
merger. Lane & Co. were the on
ly stockholders who opposed the
merger, the others agreeing to a
man that the plan was based on
sound business principles and that
the mills would be materially bene-
tltted by merging into one individ-
ual corporation. For several years
atter the mills were built Lane &
hn col
entire output, but later the bust
ness was taken from them and
handled through more profitable
channels.
The proceedings on the part of
the plaintiff were useless as no at
tempt has ever been made by the
mills to form the merger authoriz-
cd by the resolution passed by the
stockholders. The purpose of the
restraining order is merely to make
an issue il at any time the defend
ants should see fit to carry out
the plans Of the proposed merger.
The plans of the merger were
along the same lines as these pro-
posed by other mills in the State.
and if the other mills continue to
carry out their plans to form the
proposed mergers lively legal
DdlliS Is likely 10 enSue.
The eomplainants are represent
ed by Huger & Miller and w. C.
Miller, and the defendants are rep
resented by Haynesworth & Haynes
worth, of Greenville, and Col Knox
Livingston.
Following is the order:
j. H. Lane & Co. VS.. Maple Cot
ton Mills ct al.
This cause havi::g come on to be
heard upon motion of the COM
plainants for a temporary writ of
injunction, under the terms OF the
notice Of motion herein, filed on the
18th of September, 1911, and which
notice appears to have been duly
served upon the defendants herein.
and having heard the verified bill
of complaint and the verified ans
wer and return of the defendants,
and all parties to the cause being
represented by counsel, and the
same having been heard. now, on
consideration of all the same, it
is
Ordered: That until further or
der and decree of the Court here
in, the defendants and each and
everyone of them, their servants,
agents and employees, be jointly
and severally enjoined and restrain
ed from transferring and delivering
the property and assets of the above
mentioned Maple Cotton Mills to
the Dillon Mills, and form consol-
idating or eommingling the proper
ty and assets of the said Maple Cot
ton Mills with the property and
assets of the said other corpora
tions or either OF them, in pursu-
ance OF any purpose for effecting
or carrying out the consolidation
and eommingling aforesaid.
1t is further ordered: That the
complainants do within ten days
from the date of this order file
with the clerk Of the Court their
bond, with sufficient security, to be
approved by the clerk of this
Court, in the sum Of five hundred
5000 dollars, conditioned for the
payment to the defendants, Joint
ly and severally, of all such costs
and damages as they or either or
any of them shall be decreed to
have incurred by reason of this or
der of this Court or any Appellate
Court shall hereafter finally de-
cree that the complainants were
not entitled to have the same made.
Nothing herein to be construed TO
enJoin or restrain the Maple Cot
ton Mills and the other defendants
herein above named from taking
such action as by law they may be
entitled to take towards the LIQUID
&tion or dissolution of the said
Maple Cotton Mills.
Henry A. NJ Smith,
United States Judge
November 18, 1911.