Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1920-12-22
The Story of Granitevilge.


ing to the town of Graniteville the
magnificent graded school building,
the cornerstone of which was laid
by the South Carolina Masons on Sat-
urday. This splendid ediice is being
erected at cost of over S150,00O
and one does not read every day Of
great manufacturing company do
mating so literally to the education
of the youth in the community it
serves. 1t is quite true that where
one large establishment dominates
the life of communities the
Graniteville Manufacturing Company
does in that community, for almost
every resident is directly or Indirect
ly connected with the company-that
the company owes peculiar obliga-
tions to the people. However, it is
not every time that the company ac-
knowleoges that obligation and re-
spends accordingly. This has been
handsomely done by the splendid cor
poraticr headed by Mr.. Jacob Phin-
izy, of Augusta, and there should be
a thrill of pride felt by the stock
holders of the Graniteville Manufac-
turing Company, while we should
consider the splendid community of
Graniteville doubly blessed in having
such a corporation and a school so
modern as to respond to every need
of the twentieth century youth.
There is a story about Grainteville
and her manufacturing company,
however, which reads like fiction.
From the time the mill was establish
ed by Mr.. William Gregg back in the
late forties up until few years ago
it was one of the most prosperous of
cotton mills, managed, with excellent
help and in fact having an ideal mill
community, with the stockholders re-
ceiving regular dividends.
Some years ago, after the death of
the then honored president for many
years, Mr.. Hamilton H. Hickman,
the mill became involved in financial
difficulties due to the mismanage-
ment, so we are informed, of its New
York selling agents. The story is
ably and geographically told in the
address of Col. Dan S. Henderson, of
Aiken, at the cornerstone exercises
Saturday and which was published in
full in yesterdays Chronicle. Any
way, we shall give our version OF 1t,
from data secured from Col. Hender-
son and information a newspaper
man naturally acquires as he goes
along; for the editor of The Chroni-
Gle was "in" on the Graniteville
story from the start.
The Graniteville Manufacturing
Company about five years ago owed
over 100000 in addition to the
stockholders liability. The only thing
to be done was to apply for a re-
ceivership. This was done and Mr.. Ja-
cob Phinizy, president of the Georgia
Railroad Bank, was made one OF the
receivers. Mr.. Phinizy began the di-
rection of the mills affairs with the
stockholders considering their stock
worthless and with certain large
creditors pressing for sale of the
property so that they might buy it
in at a ridiculously low price. Mr.. S.
A. Fortson became the able general
manager of the mills. Graniteville
stock had fallen from $3.50 to moth
ing and many widows, orphans and
old people who had invested in it,
with what they regarded as absolute
certainty of income, were bemoan-
ing the loss of their entire invest
ment.
And here is the part so splendidly
played by Judge H. A. M. Smith of
the United States district court in
South Carolina. He saw the excellent
progress the receivers were making
and he refused to permit the sale Of
the property. It was not two years
under receivership before all of the
debts were paid and the receivership
proceedings dismissed and the Gran
iteville mills were restored to the
stockholders. The stock, which was
worth nothing, is now quoted around
$500 per share.
We believe the story of Granite
vile is story without parallel in
the history of corporate management
in this country. From bankruptcy to