The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-07-30
The Crisis AT Oldhan, in England

NEW YORK, July 2S.-The closing OF
ljO cotton mills at Oldham, England, on
account OF the strike Of the operatives
il one OF the most peculiar phases OF Brit
ish industry, owing to the fact that Old
ham is the great center oithe Joint stock
movement by which the ownership OF
these mills has passed into the hands OF
the operatives themselves.
Oldham is city in Lancashire, con-
tanning about 300 spinning mills,
but no weaving. 1t has population OF
about 100000, and its growth has been as
marvellous as that ofsOme OF our Ameri-
can cities. 1t is only six miles from
Manchester, in the midst Of rich coal.
field. The operatives having been well
prospered since the close OF the American
war, began to form joint stock companies
Of Ej to the share and buy up the spin
ming mills, owned hitherto by private
firms. In TACT, one mill was bought up
before our war, and its shares deprecated
to G3 during that crisis, but aiterward
they rose to eli. A few years ago, this
investment in joint stock companies took
tremendous start, and within a short
time no less than Sl0,OOO,OOO was invest
ed. The parties selling out usually took
onc.iOurlh Of the stock aud the rest was
put in by the middle and working classes,
even the weaver girls investing and
working people sending money there
from the whole country around. About
half the purchasG.moncy was taken in
capital and the rest borrowed at 3 per
cent. the managers thus taking advan-
tlge Of the curious principle, laid down
by Mr.. BagshOi, that more money can be
made on borrowed capital than on ones
own. On half the capital il was thus only
necessary to pay per cent. The rest Of
the profits could ali be dilvided ingener-
Gus dividends among the holders Of the
other half. At one time within the last
two years, the mills were being bought up
at the rate OF two day, and private
ownership was virtually extinguished.
These companies won't sell yarn any
cheaper, or make it better than we can,
but their shareholders are 20 cute about
expenses. We manufacturers have no
earthly chance against such people, and
the best thing We can do is to follow the
general stream" Sogreat was the mania
that ~ new mills were then in course OF
erection, with capital Of $7OOO,OOO and
100000 spindles, or half as many spin.
dies as there are in all Massachusetts !
This tremendous stimulation OF the chief
industry of course built up the machinery
and other trades, and the city grew with
out precedent.
Now has come the necessity for con-
traction, relrenchment, reduction Of the
cost Of production and perhaps prodnG'
tion itself, and we see from this double
relation Of the working classes at Oldham,
as laborers and investors, that the news
Of the closing Of $50 mills and the strike
Of 10000 hands is Of more than ordinary
Importance. A cable dispatch calls the
situation, In the Language Of the Man
chester Guardian, alarming" APP
parcnly an association Of companies has
been formed for the purpose Of meeting
the present crisis, including lO2 mills,
and only six Of these are now working.
Students of the labor problem will be
anxious to see how the jOint.stock phase
Of the cooperative movement will meet
the present crisis.