Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-10-04
--a-ee-------~-
THE COTTON HILLS.
VeHs OF an Experienced Capitalist as TO
the Causes and Effects Of the Re
SHetIoH of Time.
No Evil Results Apprehenaea-Allls to
Resume In January-A Timely
Review.
THE COTTON HILLS.

Review.
After the meeting of New England
cotton-manufsctur urers last Friday, at which
Il was determined to run the mills on two
thirds time, the Boston Post obtained tht
views OF Il number OF the largest capitalists or
tne movement. The following conversation
was had with VIM. Gray, treasurer OF the At
lautic mills:
Reporier-The cotton manufacturers have
as or course you are aware, determined on q
I Oue-third reduction Of lime. Can you explain
why this step has been takenf
Ar. Grsy-rhe trade has been decidedly dull
since July, and this month Of 5eptemb Der has
| been the dullest, suppose, that anyone now
| in the Dusi ness remem Ders-flr that month
mean. Take my own mills, the Atlantic
! mills, tor an example. We make up our goods
| in Juue. Last year, from June 70 september,
all the mauufac urers sold large quantities. OF
| goods. In september the panic came, and Tor
| about sixty days sales by the manufacturer
! were next 10 nothing. We stoI ped at that
| time from two 70 tour weeks, reduced our pro-
duetion 10 that extent, SO that when we got 70
I January our goods wers well sold for the
| whole year, and we had no great stock on
| nand in December, lS7a and January, 1874. l
/ account for the present dullnes-, therefore, in
! this way, that. although people $at the panic
| last year, they didn't feel IL then, but feel II
l this year. Business was very good up 10 Feb
ruary. In the meantime there had been = re-
| ductlOn OF price-dve or six per cent. on mer-
chandise OF the most staple character, and
/ still more on fancy goods. We ran along TIL
We got to the IN nth OF June, and the goods We
had in June were pretty well sold, 30 that IN
july our stock IN hand Yss very moderate
i mean in tie hands OF the mannfaH.-------
and do mo- think there was m6Sn IN the
hands OF the jObbers. There was a general ex-
pectation on ali hands OF brisk fail trade,
which has not been Justified We came 10
September, Which generally is a month Of
great activity In the cotton trade. 1t has not
Rep5rter-To what do you attribute that
Mr. Gray-In the first place, there has been
the de ay IN the trade, which was caused,
first, Oy jobbeTs taking u good supply in June.
80 thai IN July and August they mad 3 cd
stock; and then the country did not come
forward As early as usual There are, how
ever, good crops this year, and, after they
come in, no GouDt there wall be a good de-
Inahd rOr gOoGs. Bur just now people are
cautious; they have Tell the effect OF the pan
&c, and VIII not spend tneir money until they
get the proceeds 0f their crops There was
further decline in the spring besides the de-
cline caused 10y the panel In J une and July
there was q small rlse. aud now to-day We are
where We are willing to sell our goods from
twelve and half to fifteen per cent. below
the prices Of twelve months ago. In the faa-
cy goods line there has been still larger de-
cline. There has been reduction. particu-
lsrly on prints. My Idea ts-speaking OF
hand--that prtnts have been reduced in price
by from one Gnd a half cents 70 two cents per
yard, whereas If you take staple goods, the
brown goods that make, the price to-day Is
the same III was IN NJ hf OF uue, ana see
no reason to expect any decline since we
have taken this step OF reducing production.
RepOrter-Was there any alternative for the
manufacturers other than reducing pToduc-
MIR. Gray-I think, looking at the general
interests Of the public, and the proprietOrs OF
the mills, and OF the operatives, there was no
other step 10 be taken so favorable 10 the
united interests of all and the separate in
-erests OF each tnsn that which las been
Kegorter-What do you anticipate will be
the result Of the action taken By the manu-
iacturers?
movement made b. the manufacturers is Tor
the Interests OF all, and they Will feel conf !
dence in making their purchases 70 meet The
demand which ] think now exists IN fact, |
which have no doubt now exists-in the in- /
terror for goods Of all kinds. II Is a case
where those of US who managed large busi- !
ness had an ovsrprod uction Of goods. Now /
we are going TO lessen that production very /
materially Tor a time longer or shorter, as the /
case may be. The result OF that Will be- be /
lieve, TO ave confidence in the market, upon |
which trade can go on for the rest OF the sea- /
sou. I anticipate that the mt effect Of this !
movement will be the restoration OF conf |
dence throughout the whole trade, confidence !
in existing prices, that they Will not be low /
cred, and confidence that The business viii De 1
20 conducted as 70 give fair return under |
Reporier-Tne manufacturers are unani- |
mous, then, on this N stter2
Ar. GIay-The meeting to-day was unani- |
nous. fhls action, you see, Is not for the gain /
OF ans body. There Is no gain about IL BY |
joint action We mean 70 come down 70 two |
Keporter-wn this reduction be enforced |
fOrihWith7
Mr. Gray-Yes. We shall run the Atlantic |
mills, commencing with next week, ten hours /
per day, and four days per week. At the /
meeting to-day there were gentlemen present |
from Fall River, and they have had meetings /
there, and we Understand that there Is no 1
doubt they will accept the action taken here.
4 the reduction had not been effected Row by /
joint action On the part OF msnufaeturers, /
1 believe that the necessities OF the case |
would nave compelled a reduction before /
lOug. But the reduction would have been ef- /
lected in tragmenLary way; and consequent
on the trade as this united action. may /
mention that in my New York correspond !
here ii Was represented to me that there was |
no general deposition there to buy, and that /
n change in prlce would not increase sales, |
aud that II the tTeasurers would agree to less /
en- noductiOn by One-third, IL would bring \
things right. "In my opinion" this gentle /
man wrote, nothing else will" That was /
and 70 day, and after l had telegTaphed him /
the action Of the first meeting he wrote me in |
these words: IL think the thing is done, II /
the agreement can hold TIL January, 1876. 1 /
suppose the mills wild stop two days q week, 4
as tha At is the best way 70 keep the Organiza- |
Iion together That shows the general EEL 1
ing that the step taken was necessary.
RepOrter-Will this reduction Of time cause /
distress among the operatives9
Mr.. Gfay-I think there Will be no distress |
among the operatives. The public need have /
no apprehension that there VIII not be enough |
employment for their support IN comfort. 1
There wall be no suffering among them, so far 4
as can see, and 1 think they VIII be perfect
" satisfied, because in the nrst place, We /
shall be able TO run equal bo tWo-thifds time I
all through the winter, and, in my Judgment, /
IN the course of few months, we sha ! re- |
snme full work without any trouble. Stop
ping now, tue operatives viii understand II: 1
they will see IL is q movement IN the COM |
mon interest of all Of US. They have been |
making very good wages this summer, and |
are well OF, and have no idea thai we shall l
have to stop any more than we have,
Reporter-HOw long do you ex pect this re- \
duction of time will hold7
mr. Gray-I think until January. Three |
months will bring everything right.
The writer next called upon Mr.. u. c. Rich |
ardson, head Of the wholesale hrm Of q. q. |
RichaTdsoa & Co, at Eo DeTonshire street |
aud the following expression OF his views was /
RePoIter-wnat may Lask, sir, is your view /
Of the action taken by the manufacturers |
Ar Ric, ardson-It was necessary and a |
very good thing. II was what was wanted. 1t /
will undoubtedly have good effect on the |
trade. We have told our New YORK house \
to-day that goods here have reached their |
lowest price, and feel confident that this is |
the fact.
kePorter-What induces you TO believe the |
step was necessity?
Mr.. Ricnsrdson-In the flrst place goods are
selling clear down. The very best mills can |
and mills which cannot make goods cheap
and favOrREle are selling at n loss, ana they |
would not eontnne it, Things have gone as
far as they can, and as fer as thAy will 60 and |
the brakes are going TO be put on. The rem = |
dy Is 10 eQualize the supply to the demand, |
which Will be done by the reaction agreed |
upons This movement 10 reduce the working
houTs Of the mills by one-third is an inpOrt- |
ant one, ana believe a good one. It is in ac-
cordaDce With the law Of supply and demand,
aud Is absolutely necesSsfy. It will net do TO
have an excess Of merchandise on hand II 1
yOu are going TO maintain your prices, and |
that was the position in which the m2nuiac-
turefB stood,
Of the reduction determined upon to-day VIII
be hsnencial9
Mr.. Richaflsson-I do feel sure OF It, As
have already said TO you, am confident
thar bottom prices have been reached; aud
thai he nlaT Eet will not go down any fur her, |
but will improve. We hRYe told our New
York house this, aud lay particular stress
upon it.
Reporter-How long do you ex xPect the mills
will have 10 be run on two thirds times
Mr.. "A Richardson-I expect the reduction OF
hours &ll continue nom now 90 10 the trst
Of January. By that Time the market Will be
restored and supply and demand equalized.
Reporter-WilI the reduction cause any dis
tress amsng the opeIaiiyesI .,.,,- A.,
OF course they viii suffer some, because the
mills generally will not pay their operatives
in fall. But they viii not suffer severely.
They have been earning very largely for some
time past, the eork has been abundant, and
their pay remuneTaiiye, and almost al OF
them have accumulated For these reasons
20 not apprehend tnRt there viii be any *
Iensive or severe distress among the opera
tiVes anywhere.
ARKANSAS.
The Promise eg Good Things 10 Come