Savannah morning news. [volume] (Savannah) 1868-1887, 1882-09-28
Cotton Mills North and South

Two years ago the Times Democrat and q
number of other Southern papers brought
prominently before the South the question
OF cotton mar sDufacturing. We showed that
If the New England mills could declare
large dividends that mills IN the South
could do much better, buying, as they did,
cotton cheaper, having smaller freight bills
to pay, securing cheaper labor and water
power, enjoying a far better climate
for manufacturing, and with o market
close at hand for all the goods they
could turn out. These arguments were so
convincing that a regular boom WAS inau-
gurated. In the past two years $18 900 600
has been invested in cotton mills in the
South, and their number is increasing daily.
On September l, 1881, the Southern mills
Chat is, those In the cotton States) contained
5S3, 1896 spindles; on September l they con-
tained S39, 1851 spindles, en- increase of 45
per cent, and to-day, including the Mary
land mills, they boast of 1,237, 400 spindles.
In the meanwhile, there has been no in
crease in spindles in New England, nor any
other portion Of the North. Those persons
desiTous of investing their capital in the
cotton manufacturing business, naturally
turn towards the South as the best field, re-
turning them the surest and largest divi-
dends on their money. During the season
of 1SS0-Sl the Northern mills took ]. .66l, ,2O6
bales for consumption, and, in 1881 50,
Lose, ,SO4 bales, an increase Of only ~ per
cent, against an increase of 30 per cent. ia
the consumption of the Southern manufac-
tories.
The boom still continues. There are now
more mills going up in the South than ever
before. Mr.. NJ. Gunby Jordan, of Colum-
bus, Ga, who is thoroughly acquainted with
this subject, predicts that there will be an
increase of at least As per cent. In the spin
dies in the South during the present business
year, and that the Southern consumption
win reach 400, coo bales, or one-quarter that
Of the North.
The reasons for this. as we have said, are
evident. The New England mill must pay
all the charges of freight, commission, in
surance, drayage; while the Southern mill
has the cotton delivered at its door, COM
psratively free from these charges; and, at
the same time the goods manufactured at
the South largely find a market there,
making great saving in freight.
The result Is larger profits and bigger
dividends. In a speech in Congress, some
time ago, Mr.. Russell, a Massachusetts,
member, declared that after a thorough ex
animation of the official statements of the
leading cotton manufacturers of New EOg-
land, he was able to say that the stockhold-
ers In these mills received average dividends
of little less than seven per cent,
The Baltimore Journal Of Commerce, after
making 6 similar examination of the South
ern mills, says: '1n 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 dc c!ared, large
amount was taken from the earnings and
used for repA airs, additions to machinery and
increasing the size and capacity of the mill,
cotton manufacturing ranged as high as so
nar cent a wear.