The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-10-15


The New York Correspondent of the Lon
don Standard supplies some particulars as t.
the cotton manufacture in the Northern ant
Southern States of America, and draws com
parison between the two. He says:
First, as to the North. l have some fact
bearing upon the profits of cotton manutac
ture in six mills, which have been adduced tt
prove the proftabIeness Of Northern manufac
lures. give these as presumably correct.
The Chicope Mills, with capital OF S43O,
600, made an average profit of 25.6 per cent
during the period from 1862 to 1o7l-the
period of the six calculations The SALISBURY
Mills with a capital of 100000 made a
profit of 22.5 per cent; the Pacific, capital
So. SOC, 900, made 81 25 per cent; the Naum-
keag, capital 100000 made 1852 per
cent; the Merrimac capital So, SOC, 600, made
1916 per cent, and the Middlesex, capital
$3.50, 900, made IL per cent. These profits,
leaving out Of calculation the capital invested,
show an average percentage OF 1I9o. But
the result is pretty nearly correct, as we see
two facts OF opposite character-namely, that
the largest profits come on the smallest capt.
tai, and that the amount of capital that made
above the general average is largely in excess
nearly double. in fact-that which fell be-
low it.
Secondly, as to the South 1 have no COM
prehensive figures to show IN this region, for
the reason that such industries as these were
all in confusion during the whole OF the
period of great prosperity embraced in the
Northern reports. The Macon Mills (steam)
during the last year or two claimed 10 have
realized profits to the enormous extent OF ~
to 40 per cent-say the average 30. The
Petersburg Mills are said to yield profit OF
25 per cent; the Langley Mills over 25 per
cent; the Augusta Mill, over 20 per cent; the
Columbus Mills, the largest probably in the
South running $4,000 spindles and 300
looms), over 20 per cent; and the Tallassee,
20 per cent.
These six average, as above calculated, a
profit Of over "a per cent. This, it must be
rememb ered, has been mainly since the fnan-
cial crisis of September, 1873, during which
time many of the Northern mills have been
running on half time. These facts, SO far as
they constitute any comparison, tell very
strongly in favor of the greater profits of
Southern over Northern mills. The per cent
profits are: Northern, in prosperous times,
1898; Southern, in times OF great financial
stringency "a. But as | minated above,
the facts here given. while 1 believe them to
be honestly estimated, and very close to the
truth, are not to be taken strictly.
Thirdly, as to the one mill mentioned above,
have specific and trustworthy statements.
The mill is the Graniteville Manufacturing
Company, located in South Carolina. Mr.. H.
III. Hickman, President, has just published
his annual report and it is from this that l
take the following details: The capital stock
Of the company is six hundred thousand
($600, 000) dollars; and the net profits for the
year ended on the 9th of February have been
S1l4,5SS, which is 1903 per cent on the
capital stock. President Hickman states that
the trade of the country in all its departments
has not yet wholly recovered from the de.
preston caused by the monetary panic of
1873.
The mills in the North ran on short time
during large part of the year, and some Of
them stopped work altogether, while the
Graniteville ran without interruption. The
profits from sales of goods in New York were
81, $40; from domestic sales, ST., 1893; from
from sales Of waste SIS, 1853; from rent, $685.;
in all, $133, 2S7. The amount at credit of
profit and loss account has been reduced by
the sum of SIS, 500; and by subtracting that
amount from the gross profits above given,
the remainder is 1850, which shows the
net profits-namely, - % per cent on the
capital stock.
The consumption Of cotton during the
year amounted to 1876, 1872 pounds, or S171
commercial bales, $50 pounds each, of the
value of $52S, 602 an average of IA 3S cents
259, 1876 pieces of cloth, in TO- 536, 500 yards,
piece being about 40 yards. This. is an in
crease of 170,036 pounds of cotton, Ass
pieces of cloth, and 1913, 500 yards over the
preceding year. They have in store 1856
bales, or 1874 $50 pounds, which cost an aver
age of Is 66 cents pound-less than the pre-
ceding years prices
Fourthly, as to the reasons for the greater
profits of the Southern manufacturers.
Prominent among these is the fact that they
have cotton at their doors. The transporta-
ton from the South to, say LOWELL the center
Of Northern manufacture, costs, for freight,
SIS; for commission on purchase, 81 so; for
insurance, so cents; and for exchange and
shipping expenses and truckage, 60 cents
in all 81 65. Now a bale of $50 pounds at
Is cents pound is S67 so bale, and 81 65
for expenses incidental to transportation de-
Quoted is deduction of more than ii per
cent of the capital invested.
But this is not all OF the $50 pounds in
bale the waste is always calculated at Is per
cent, which is 81 pounds, and this from $50
leaves 3S2 8 as the bale of fibre. Now, 81 65
for transportation il IS SO per cent of the
whole value, and this is the disadvantage with
which the Lowell manufacturer begins his
work. 1t costs him then 81 Al bale to get
the cloth to New York, the common market.
1t costs the Southern manufacturer, at Au-
gusts, say, So A to ship his cloth to the
same market But, by referring again to
President Hickman's figures above we find
that his market is at home-that is, 81 per
cent OF his sales are domestic, while 80 per
cent are in New York. He has to pay the
50 Al freight on only SO per cent OF his cloths,
while theLowell manufacturer pays his ST. 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 and frewood are
both cheaper, and far less of the latter is re-
CURED.
Waits and 70 Rent inserted in the BULLETIN for
ftv