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.