The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-08-06
NEW ENGLAND'S SCEPTRE.

NEW ENGLAND'S SCEPTRE.
Why She VIII Hare to Hand it UDer to the
.South-THe Impending Reoolution IN Cotton
Manufacture.
The New York correspondent of the
London Standard furnishes some i'm
portant facts as to cotton manufacture
in the northern and southern states, and
draws a comparison between the two.
He says:
First, as to the north. I have some
facts bearing upon the profits of cotton
manufacture i'll six mills, which have
been adduced to prove the profitable
ness of northern manufactures. give
these as presumably correct. The Chic
opee Mills, with capital of $430, 900,
made an average profit of 25. 6 per cent
during the period from 1862 to 1871
the period of the six calculations. The
Salisbury Mills, with capital of 49,
000. 900, made profit of % 5 per cent;
the Pacific, capital, $500, 900, made
21 25 per cent; the Naumkeae, capital,
81, 500, 900, made 19 62 per cent. the
Merrimac, capital, So 500, 900, made Is. 5
per cent; and the Middlesex, capital,
$3.50, 600, made 1875 per cent. These
profits, leaving out of the calculation
the capital invested. shows an average
per centage of 1898. But the re-
suit is pretty nearly correct, as we see
two facts of opposite character
namely, that the largest profits come
on the smallest capital, and that the
amount of capital that made above the
general average is largely in excess
nearly double, in fact-that which fell
below it.
Secondly, as to the south. have no
comprehensive figures to show in this
region, for the reason that such indus
tries as these were all in a confusion
during the whole of the period of great
prosperity, embraced in the northern
reports. The Macon Mills (steam) dur
ing the last year or two claimed to have
realized profits to the enormous extent
of 30 to 40 per cent.-say, the average,
35. The Petersburg Mills are said to
realize a profit of % per cent; the
Langley Mills, over Is per cent; the
Augusta Mills, over % per cent; the
Columbus Mills, the largest probably in
the south drumming 80, 900 spindles and
900 looms), over 20 per cent and the
Tallahassee, 20 per cent. These six av-
erage, as above calculated, profit of
over "a per cent. This, it must be re-
membered, has been mainly since the
financial crisis, September, 1873, during
which time many of the northern mills
have been running on half time. These
facts, so far as they constitute any COM
parlson, tell very strongly in favor of
the greatest profits of southern over
northern mills. The per cent. profits
are-northern, in prosperous times,
1898; southern, in times of great fnan-
cial stringency, "a. But, as l intimated
above, the facts hare given, while be-
ieve them to be honestly estimated end
very close to the truth, are not to be
taken strictly.
Thirdly, as to one mill, mentioned
above, I have specific and trustworthy
statements. The mill is the Granite
vile manufacturing company. located
in South Carolina. Mr.. Fl. II. Hick-
man, president, has Just published his
annual report, and it is from this that
[ take the following details: The cap
ital stock of the company is six hun
dred thousand (600,000) dollars; and
the net profits for the year ended on
the 9th of February have been ia ,5SS
capital stock. President Hickman states
has not yet wi oily recov-
cred from the depression caused by the
panic of 1873. The mills in
the north ran on short time during a
large part of the year, and some of them
stopped work altogether, while the
ran without interruption.
The profits from sales of goods in New
York were $44, $40 from domestic sales; |
oil nf
from rent, $595-in all, S133, ,2SY. The |
count has been reduced by the sum of |
BIS, ,699 and by subtracting that |
amount from the gross profits above |
shows the net profits, namely, 1909 per |
of cotton during the year |
to 1876, 1872 pounds, or III |
commercial bales, 45O pounds each, of |
the value of $528,602, an average of |
1888 cents per pound. The cotton
used was made into 259, 1926 pieces of |
cloth, in 10, $50, 500 yards, piece being |
about 40 yards. This is an increase Of |
l7O, 036 pounds of cotton, 4, 755 pieces |
of cloth, and 1913, 500 yards over the |
preceding year. They have in store |
S55 bales, or 834, $50 pounds, which |
cost an average of 1856 cents pound
less than the preceding years prices.
Fourthly, as to the reasons for the |
greater prof IS of the southern manu-
facture1s. Prominent among these is
the fact that they have cotton at their
doors. Tue transportation from the
south to, say Lowell, the centre of
Northern manufacturers, costs, for
freight; S., for commission on purchase,
81. so for insurance, so cents and for
exchange and shipping expenses and
truckage, IS cents, in all 7.65. Now,
a bale of cotton 450 pounds, at Is cents
a pound, is $67 80 bale and 81. IS for
expenses incidental to transportation
deducted is a deduction of more than
II per cent of the capital invested.
But this is not all. OF the 450 pounds
in q bale the waste is always calculated
at Is per cent, which is 67.5 pounds,
and this from 450 leaves 1925 as the
bale of fibre. Now, $7.65 for transpor-
tation is SO per cent of the whole
value; and this is the disadvantages
with which the Lowell manufacturer
begins his work. It costs him then
81. II bale to get the cloth to New
York, the common market. It costs
the southern maUufacturer-at Angus
"a, say--$2.41 to ship his sloth to the
same market. But, by referring again
to President Hickman's figures above,
we find that his market is at home
that is, 62 per cent of his sales are
domestic, while 38 per cent are in New
York. He has to pay the 50 Al freight
on only 38 per cent of his cloths, while
the Lowell manufacturer pays his
81. Al on all of his. Another point of
economy to the Augusta manufacturer
is the cheaper labor he can command.
He has no fear of strikes, as his brother
in Lowell has to deal with every
month. Food aud frewood are both
cheaper, and far less of the latter is
required.
4 Terrible Moment.