A Report to Stockholders
Recent offers to purchase Erwin stock have
created, of course, unusual interest in our Com
pany, both on your part as a stockholder or em
ployee, and on the part of the public. It is
not surprising that there is considerable in
terest in the ownership and control of a cor
poration with the history of achievement and
future potentials of Erwin Mills. To those of
us who are responsible for managing the mills
the keen interest in Erwin stock is naturally
gratifying.
Those interested in our operation have prob
ably noted, among other factors of interest, the
following:
First: Over the years, a reputation for fair
ness in all our dealings has been the foundation
of our continued growth.
Second: Although the textile industry is (me
which is subject to sharp fluctuations in de
mand—depending in some measure on the gen
eral economy of the nation—we at Erwin have
enjoyed some success in reducing the impact
of these periodic declines in textiles. Even in
periods of reduced demand we have realised
the need for producing products which main
tain consumer recognition and to keep our
skilled work force intact As a consequence,
generally speaking our production has been
steadier than has been the case in many other
mills, and our employees have had fewer lay
offs and short work weeks.
Third: We have continually attempted to
pursue a constructive program for improving
employee relationships. We have believed that
by providing our employees with information
concerning the economics of running textile
mills we could secure their cooperation in cut
Unites From Press Releases Regarding Erwin Stack
These are the statements made by F. E. Grier, President of Abnev
TUill*, and William H. Ruffin, President of our Company, at the time
Abney acquired working control of Erwin Mills. This is the first state
ment made by President Ruffin in this matter as he was advised by
Erwin Mills' attorneys to make no comment until the time had expired
on all proposals to buy Erwin stock-
$
Statement of F. E. Grier, Presi
dent of Abney Mills, to The Dur
ham Sun, June 6th:
"Officials of the Abney Mills an
nounced today that Abney has ac
quired from the Duke interests
another substantial block of stock
in Erwin Mills, Inc., which now
gives Abney the desired working
control which it sought in Erwin
Mills.
"In making this statement, offi
cials of Abney stated that the com
pany does not contemplate making
any further general offer to Erwin
stockholders for the purchase of ad
ditional Erwin stock. They also re
iterated that the Erwin stock which
Abney has purchased is to be held
as an investment with no thought of
merger or consolidation between
Abney and Erwin.
"Officials pointed out that nego
tiations for the purchase of Erwin
stock were begun several months ago
and stated that the company is well
pleased with the response which it
has received from stockholders who
sold their shares to Abney and from
stockholders who desire to retain
their stock in Erwin. .
"Officials of Abney indicated their
appreciation of the many expressions
of confidence they had received and
stated it was their hope to be of
service to Erwin Mills and to the
several communities where Erwin
plants are located."
THE ERWIN CHATTER
V«L IX, Ho. 6
BY WILLIAM H. RUFFIN, PRESIDENT
Statement of Wm. H. Ruffin,
President of Erwin Mills, Inc., to
the Dnrkam Morning Herald, June
7th:
"I have received from many Erwin
stockholders, both large and small,
favorable comments about the Abney
Mills. I, along with other stock
holders and employes, welcome them
as a large stockholder in our com
pany. lam confident that the Abney
officials will share with us who man
age the Erwin Mills the same strong
desire to continue making Erwin
one of the best and one of the most
respected names in our industry. I
am also confident that we will have
a smooth working and efficient rela
tionship with the Abney Mills.
The Duke interests have been
most constructive in Erwin Mills af
fairs, and most considerate through
all the years of their fellow Erwin
stockholders, of Erwin employes,
and of the management of our com
pany. That has been and is greatly
appreciated.
"Naturally we regret to lose them
as large stockholders. We know,
however, that with their broad in
terests throughout North and South
Carolina that we will continue to
have in Erwin Mills their strong
interest and good will.
"We welcome cordially the in
terest to whom they chose to sell
their stock, the Abney Mills, who
enjoy an excellent reputation, and
who are known throughout the in
dustry as constructive and efficient
mill operators."
ting production costs. efforts in this direc
tion have had encouraging results, and we feel
that the cooperation we have thus far received
will be continued in years to come.
Fourth: Erwin has had satisfactory opera
tions for the first six months of the Company's
current fiscal year, considering the rather ad
verse circumstances still prevailing. Perhaps
more worthy of note, however, is the reputa
tion of the Company with its customers. An
independent survey made recently, for example,
stressed the unusually high opinion of our
customers for the quality of our product and
for the integrity of the Erwin name.
With reference to the proposals to buy Erwin
stock, our Company's attorneys advised me and
my associate officers that until the proposals
expired, we should make no comment. We feel
you are now entitled to have information on
this subject, which is of such vital interest to
all of us.
The Duke interests put up a substantial
part of the capital for the founding of our
Company and continued to be until a few
weeks ago our largest stockholders. The va
rious Duke holdings of Erwin stock were held
in a half doaen or more trusts, of which at
least three New York banks were trustees.
Some twelve months ago the trustees of the
Duke interests concluded that for tax reasons
it would be in the best interests of the trusts
to 9ell a substantial part or all of their Erwin
stock. Then, having satisfied themselves as to
the character and ability of Abney Mills, the
Duke interests began negotiations that finally
resulted in the sale to Abney Mills of a sub
stantial portion of the Duke stock holdings in
(Continued to Page 2)
Vacation Pay Is
About $401,750
Hourly employees will collect an
estimated $401,750 in vacation pay
this year.
These figures are approximate,
but here's the way it adds up now:
Durham $129,000
Erwin 155,500
Cooleemee 81,000
Neuse 4,750
Stonewall 31,500
Total $401,750
We hope that the money will
bring lots of fun, interesting trips,
and a good rest. When you get
back, let us hear about your vaca
tion. See your Chatter Reporter.
If You Were
The Editor y
If you were the editor of the
EBWIN CHATTER, bow would you
try to improve the paper? Is the
interesting? . . . does
it report Ore kind of news you like
to read? . . / have emjugh pictures?
... too niany picture*?
NOW is the time to express your
opinion, f Wont you please give us
your advice by answering/the ques
tions on the enclosed questionnaire.
NAME.
All we want" are your honest
opinions. When you have filled out
the questionnaire, please put it in
the Chatter Box in your depart
ment DO IT NOW because the
Chatter Boxes will be taken down
in three days.
Thanks in advanoe for your help.
JUIfE, 1953
Abney Buys Working ,
Control of Erwin Mills
Our Oldest
Living Director
Col. J. Harper Erwin. brother of
the late W. A. Erwin who founded
the Erwin Mills, is one rf the
original stockholders of our Com
pany. He became one of the carlv
Directors and is now the oldest liv
ing director.
Cot. Erwin was called to Durham
in 1893 to fill the position of Secre
tary and Treasurer of Durham Cot
ton Manufacturing Company and
Pearl Cotton Mills. Later he be
r me President of these mills, a
position which he held until Pearl
Mills was sold to Erwin Mills in
1932. Since that time he has re
signed from the Presidency of Dur
ham Cotton Manufacturing Com
pany and retired from business
activity.
Before coming to Durham, Col.
Erwin was Secretary and Treasurer
of the E. M. Holt' Plaid Mills of
Burlington, N. €.
Col. Harper Erwin is a well
known and highly respected figure
throughout Durham and especially
in West Durham where he has re
sided for so many years. As a
Director of Erwin Mills, he keeps
closely posted on the affairs of the
Company.
W. H. Muse Retires from
Started With Company In
1907; Asst. Manger Of
Erwin Plants 27 Years
W. H. Muse, Assistant Manager
of the Erwin Mills in Erwin, re
tired on June 1. "I am happy over
the prospect of spending the sum
'mer at the seashore, but am find
ing it very hard to say good-bye
to my friends here," said Mr. Muse
just before he left. He worked for
the Company, off and on, since 1907
and was Assistant Manager in Er
win for the past 27 years.
Mr. Muse did summer work as a
clerk in the Durham office of Erwin
Mills while he was at Trinity Col
lege. After graduation he returned
to the Durham office for four years.
Mr. W. A. Erwin then sent him to
the Locke Cotton Mills Company
in Concord as Assistant to the Sec
retary and Treasurer. In 1917 Mr.
Muse went into the Army and upon
his discharge in 1910, he returned
to Locke Cotton Mills as Assistant
to the Superintendent. In 1926
he became Assistant Manager of our
Circulation 6,000
Textile Firm Hold* Stock
Aa Investment; No Thought
Of Merger or Consolidation
Between Abney end Ertein
Abney Mills of Greenwood, South
Carolina, is now one of the prin
cipal stockholders of Erwin Milk,
Inc. Abney Milk employs approxi
mately 7,500 employees in nine tex
tile plants in South Carolina. They
manufacture print cloth, spun
rayon fabrics and rayon filament
fabrics and operate a finishing
plant for cotton goods.
Companies Operate Separately
"The Erwin stock which Abney
has purchased is to be held as an
investment with no thought of mer
ger or consolidation between Abney
and Erwin, n said F. E. Grier, presi
dent of Abnev Milk. Therefore, the
two companies will continue to
operate as separate organisations.
Public Interested in Sale
A year ago the trustees of the
Duke interests concluded, for tax
reasons, to sell all or part of the!r
Erwin stock. They began negotia
tions which finallv resulted in the
sale to Abney Milk of a substantial
portion of the Duke stock holdings
in Erwin Milk On May 16 of this
year, Abney Milk offered to pur
chase stock in Erwin Milk from
stockholders for $15,125 per share.
On May 22, Mr. George Watts Hill
of Durham asked Erwin stock
holders who wished to sell, to offer
Erwin stock t» him at $15.25 per
share, and stated that he would
advise by June 5 how much stock he
would accept.
The business of selling and hny
ing Erwin stock caused considerable
interest on the part of the public
and was widely reported in news
papers throughout the South. Mr.
Grier announced on June 6 that
Abney had acquired working con
trol of Erwin Milk. Mr. George
Watts Hill declined to make public
comment.
We Have 1100 Stockholders
There are 1100 stockholders in
Erwin Mills, Inc. They are the
men and women who have invested
their money in our Company. As
stockholders, they own Erwin Mills
and hire its management to run the
business. The stockholders, of
course, buy and sell their stock as
they wish.
plants in Erwin, the position he
held until his retirement.
In addition to his work at the
nulls, Mr. Muse is a director of the
Bank of Harnett, president and ogc
officio chairman of the Good Hope
Hospital Board. He has also been
active in church work and has been
chairman of the board qf stewards
of the Erwin Methodist Church for
more than 20 years.
Marchant Cottingham, who has
been Manufacturing Assistant to
Mr. Harris, is assuming the duties
and responsibilities formerly hefct
by Mr. Muse.