The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1889-05-30
Millions in Cotton Oil.

COLUMBIA, s. c., May 25.-Great in.
terest naturally centres now in the cotton
seed oil business, for the reason that so
many new mills are projected all over
South Carolina. Sixteen of them have
applied for charters already this year, and
as more than half have been incorporated
it is reasonable to suppose that they will
be at work by the opening of the next
cotton season. This is an opporlune time
for considering the possibilities of this
new manufacture in the State.
A rough idea of the quantity of raw
material available may be obtained by
means of the following calculation. The
cotton crop Of the State in good seasons is
about 600, 900 bales of 450 pounds each,
or 243 100000 pounds. As the seed pro.
duct is twice as heavy as the lint, it ap-
pears that the full annual yield of cotton
seed is 4S6, 100000 pounds or 2l5, 900 long
tons. No figures have been given for The
season just ended, but during the preced.
ing season the Columbia mills paid the
producer, according to the Me,os and Cou.
rier's review of the business of Columbia
in 1888, an average of S13 per ton. at
this valuation the States annual crop of
cotton seed would be worth $2,795,000.
OF course, under no circumstances would
all of this seed be available for milling
purposes, as much of it is produced too
far away from the markets, much has to
be retained for planting the next crop,
and quantities are wasted and damaged.
But, so far as the production is concerned,
it is believed that this estimate of seed is
below rather than above the mark. Du.
ring the season of 18S7-SS the Columbia
mills sold their products for an average
price of about 500 a ton, roughly divided
as follows: Oil S12, meal S6, lint 50. at
these prices the seed product of South
Carolina after passing through the mills,
would be worth $4,250,000. It may be
thought that the business is being over.
done, and that the seed cannot be obtain.
ed in sufficient quantities to supply the
mills. But when it is considered that
the new mills are nearly sll very small as
compared with the two leading Columbia
mills, and that combined they will not
more than equal the capacity Of the mills
already established, which grind say 50,.
900 tons year, it is evident that the
States supply of seed cannot be more
than half consumed during the next year
or two.
For example, the three new mills to be
erected by the United Cotton Seed Oil
Company--and they are the largest Of the
new ones-will grind about go tons each
per day, while one of the Columbia mills
has a capacity of lbs tons day, and
another can grind 100 tons. An expert
enced cotton seed miller tells me that next
season will be the first in which full
test of the SUCCESS of the manufacture on
a competitive basis will be afforded. At
the same tine he has no fears that the
supply of seed will run short, as he has
found that the greater the number of
mills the greater has been the supply of
seed.
Manufacturers of cotton oil must, of
course, consider the danger of oyer.pro.
duction, but this would seem to be remote
at present, as the consumption of the
production is so rapidly extending and
increasing.
The small "neighborhood mills" if
managed, ought to do we'll, be.
cause they will have no freight to pay
on their seed, aud it would be hard for
other mills to draw their supply away
from them when the producers them
selves are interested in the local manu-
factnre. After all the only serious
danger to this growing industry is the
existence of big monopoly like the
Cotton Oil Trust, which has the means
and the will to make itself disagreeably
felt By the small mills.
It may not be generally known that
the Oliver Brothers have sold out their
interest in the Southern Oil Company
and are again in the business on their
own account, building one hundred and
fifty ton mills at Charlotte and Atlanta,
and prospecting for one in Birmingham.
The divers entered the oil business
before the trust was organized and made
money out of small mill in Charlotte.
They then put up an eighty ton mill in
Columbia. The newly organized trust,
however, forced them to sell out these
mills and the divers assisted in organic.
ing the Southern Oil Company, which
put up mills here and elsewhere in the
South as far as Texas. This new compa.
ny, by the way, in spite of the competi-
tion Of the trust, paid last winter 4 per
cent. dividend on its stock of four
millions. The cost of their plant could
not have been half as much. Now the
divers, who are worth about q million
between them, have abandoned the
Southern and begun again on their own
account. 1t has.been reported that they
did this because the Southern has entered
into combination With the trust, but
this rumor has been vigorously denied
and is not credited by men who ought to
know.
The United Cotton Seed Oil Company
will probably establish mills in other
States, as we'll as in South Carolina. The
stronger and more numerous these com.
petitors the smaller will be the chance of
the trust again securing control of the
business and depressing the price Of seed.
So all ought to be welcomed. ,..Neapa and
Courier.