Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-11-21
CHEAP COTTON.
Cause OF the Cotton Mills Big Profits
Snug Profit of I6.1 6 Per Cent. Realized.

Snug Profit ofI6.16 Per Cent. Realized.
FALL. RIVER, MASS, November 90
A report made up from figures furnished
by +. o. Dodge follows, giving the
earnings OF the mills OF this city for the
wear. Gross earnings are taken because
bookkeeping methods differ widely in
the various corporations and it is i'm
possible to estimate the net receipts ac-
curately.
From the sums given below, however,
a certain percentage has been charged
of by nearly every factory for depreci-
ton, and many mills have added TO
their surplus accounts.
One or two of the companies which
were in debt have paid out no dividends
TO stockholders. and have devoted the
large profits realized to wiplnS out their
liabilities.
As has been reported, the Union has
distributed among its owners the huge
accumulation which it had on hand,
amounting to half its capital stock OF
$3.50, 600, and during the past II years
this concern has made an unprecedent-
ed showing.
AS the SBhleucub lGfChiS' GIL Va WV
mills have Drospered and the year has
been a remarkable one for them. The
boom may be attributed to two things,
namely. the period of depression which
proceeded it and the abundant crop OF
cotton.
Only politicians find it necessary to
look further for the favorable conditions
which have prevailed and they drag in
the Mckinley bill, which they contend
has preserved the home market intact,
kept wages at high water mark and
contributed to the general prosperity.
However, the two features mentioned
are sufficient to explain the heavy re-
turns which the machinery has yielded,
though until q comparatively recent
date the demand for goods has not been
phenomenal. Ia other words, there has
been no call for the product which led
to particularly high prices, If the pres
ent month is excepted.
The entire output has been market
able ut moderate quotations, owing TO
the dull times in the past which check
ed the building OF new factories and OPP
Grated in favor OF the manufacturer.
Profits were small and many COM
panies barely held their own for three
or four years. As consequence capltal
kept out of the field, and, while the
country continued to grow, there was no
incentive to add 10 the plant.
Accordingly, during nine months OF
the year just ending, printers may have
taken goods at figures which were sat
itfactory, but the chief factor after all
IN the large earnings was cotton. Manu-
facturers were able to purchase the raw
material at very low rates, and to that
fact, more than to any other one thing,
is due the margin for profit.
There is said TO be little or no rea-
ton between the price of cotton and
the price Of goods, and had the usual
quotations for the former ruled there
would have been no great amount OF
money in the business. As II is, stock
holders have received satisfactory divi-
ends and the mills have been enabled
TO make repairs and put by funds for
rainy day.
The outlook continues to be encour-
aging because, unless the Republican
papers are misleading, the late election
has contributed TO keep the situation
unchanged. II is reported by the ca
lamity prophets that If Mr.. Harrison
had beaten Mr.. Cleveland great many
new mills would have been erected and
there is no room for them.
At least, the earnings which have
made the business remarkable OF late,
would be curtailed to make room for
additional spindles, and the history Of
the industry proves that the disposition
TO invest in mill property faster than
the consuming capacity of the country
warrants has done more TO keep profits
~ low ebb than all the economic
changes ever proposed or introduced.
1t is true that cotton has advanced
rapidly of late, bat at the same time,
the cloth market which has practically
been cornered has also advanced, and
all the indications point to continued
good business for another year.
Twenty corporations, representing a
capital of SIS, 1920, 900, haqe earned So,
627, 600, an average of 16 1G-1OO per
cent.