Savannah morning news. [volume] (Savannah) 1868-1887, 1882-09-16
Cotton Manufacturing in the South
Baltimore journal Of comn,s,..

One Of the most important changes which
the commercial and manufacturing world
has ever witnessed is now in progress, III
influence is already felt In Europe and
America, although its full importance ha:
scarcely yet been realized. This change is
the development of cotton manufacturing at
| the South, where heretofore the people have
been content to raise the cotton, ship it to
the North or to England to be manufactured,
and then returned to the South. A public
/ speaker at the South once said OF this sys-
| tenn; 81 raised bale of Gotten In North Car
| olins. carry Il to the depot and ship it
| North. I pay freight, drayage, storage,
insurance, commission, and even for weigh
| ing it. II passes into the hands of the
manufacturer. He spins, weaves and prints
| 1t. He sells 1t to the jobber in New York,
| and the merchant at my home brings 1t back
| TO my door and sells 1t as calico to my wife
and daughter. Every man that touches that
| cotton, from the time it leaves my hands till
It returns, makes his living out Of #; and In
the price pay for It, pay every man that
handles it. Now why can't we spin and
weave that cotton in the South? Why can't
we Keep at least large part Of that money,
which now goes North, at home to etimu-
late industry and develop the resources of
our own countryW
These things have been impressed upon
the South; and not only the people of this
section, but the business men of the world,
have not failed 10 see the folly of such a
system; and the.questions asked IN the fore
going extract are already receiving an ar
swer, and the South is even now beginning
to spin and weave her own cotton. 1t
would be difficult to more forcibly describe
the manner OF cotton handling than this
extract does, and at the same time to en-
phasizs the great saving IN manufacturing
this staple where It is produced. The New
England mill must pay all these charges OF
freight, commission, insurance, draYage,
ETC., which aggregate several dollars q bale,
whereas the Southern mill has the cotton
delivered at its door comparatively free of
these charges, Thus, the Northern mill
must labor under this increased cost
of raw material-a difference which
alone, upon 10000 bales of cotton, would
probably be equal to 10 per cent. upon
$500, 900; so that the saving in transports-
tion alone to a Southern mill would be
equal, as a general thing, to a profit of 10
per cent on its capital, while at the same
time the goods manufactured in the South
largely fnd a ready market in the same
section. and second saving in freight is
made. Some months ago we presented some
carefully compiled statistics as to the profits
OF cotton manufactured at the South, and 1t
may be well to reproduce a few of them.
The Augusta, Ga, factory is the Oldest
MI III thdi Cib1s IL HAS CAP bdl VI
5000, ,OOO. and runs 26, 200 spindles and 700
looms; from 1865 to 1882, IL years, it has
paid outiu cash dividends 81 ,467, ,000, or about
"a times It's capital, or an average of 1417
per cent. per annum; besides this 1t has laid
aside a surplus of between $340,0 and
$350,OO0, or over 50 per cent. of it's entire
capital; its stock is worth from 100 to TO-
The Langley MIL OF the same city has a
capital of $400 600, with 10, 900 spindles and
329 looms; it has paid in the past three and
half years Az per cent. dividends, or an
average of about Is per cent. per annum;
last year 1t paid dividend OF 20 per cent;
its present surplus is 500, 900, aud its stock
is worth from 160 to 10. The Graniteville
Mill, also OF Augusta, with a capital of
5000, 900, has 81 900 spindles and 900 looms;
this company pays 10 per cent. dividends,
and then puts It's surplus into new spindles;
out Of its surplus earnings-that is, its earn
tDgs abOveits dividends-it has built without
q dollars expense to the stockt olders, the
Vauclause Mills, with 10000 spindles for
making fine fabric, at a cost of $340, 600; 1t
has laid aside an additional surplus of
$125, $40.
The Enterprise was started in 1877, with
capital of 100000; 1t has also paid 10 per
cent. dividends, and laid aside the rest of
its earnings as a surplus. The Wesson mills,
of Mississippi, have paid dividend of %
per cent, and the Troup factory of the same
State "A per cent, while from time to time
we have noted dividends of from 80 to so
per cent, the latter having been earned by
Pulaski, Tennessee, mill last year. In no
case have we heard OF any mill declaring
less than 10 per cent annual dividends,
and in every case In which only this per
cent. was declared a large amount
was taken from the earnings and used for
repairs, additions to machinery and in
creastng the size and capacity of
the mills. Throughout the South the cotton
mills are prosperous, and their owners are
making money. AS compared with the cot
ton manufactures OF New England the South
ern mills show a wonderful difference IN
earnings. Mr.. Russell, a Massachusetts
member OF Congress, said, in a recent
speech in the House OF Representatives: 81
have from official sources q statement show |
ing that fifty OF the leading corporations
In Lowell, Lawrence, Chicopee and Salem, |
Massachusetts,, Manchester, Nashua, and
Newmarket, New Hampshire, Lewiston and |
other points in Maine, representing capt.
tai Of $50, 900, engaged in manufactur-
ing the various grades OF cotton and wooden |
fabrics, have paid to their stockholders in
the last five years an average dividend Of
little less than seven per cent. per annum
only.n
Here is an authoritative statement that the
manufacture Of cotton goods in New Eng
land is not one-half so profitable as in the
South. On this $4,000, 600, invested in
Northern mills the profits for the past five
years have been less than $17, 500 600; while
the same amounts Of capital in Southern
mills, basing our calculations upon what
other mills now pay, would have been from
$40, O,OOO,0 coo to $50, ,0O0, 600, or possibly more.
Such difference as this Is bound to tell.
The Southern miles save from two to three
dollars bale In the matter of freight alone
as compared with what the Northern mills
pay. They have lighter expenses for heat
ing, cheaper raw mate ial, an abundance Of
water power, cheap labor, cheap living and
other advantages which enable them to pay
more than double the profits that Northern
mills can possibly earn, and these things are
already working out q mighty material
development Of the South.
With view of showing the present extent
Of this important industry we have care
fully compiled the statistics of the business,
and in the following table exhibit the