The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1895-01-03
COOPERATIVE COTTON MILLS.
Views of a Manufacturer Money
to Build Mills May be Raised by
Small Weekly installmerts.
I Wilmington Star. ]

Wilmington Star
In recent issue of the Baltimore
Manufacturers Rer0rA Mr.. D. A.
Tompkins, of Charlotte, one of the
most successful cotton manufacturers
in that section, has an interesting
article on cooperation in building
cotton mills.
Mr.. Tompkins shows how companies
can ue organized and the money raised
by weekly payments for building cot
ton mills in such a way as to make the
organization of such companies feast
bic in hundreds Of towns where it
would be impossible to secure large
subscriptions. In The South we have
few savings banks, compared with
those in the North, and we need enter
prises that will encourage the habit OF
saving and investing portion OF the
weekly earnings of the average citizen.
Building and loan associations supply
this waEt to some extent, but we need
cooperative companies to push indus
trial enterprises with the capital that
can be easily furnished in small weekly
installmenls from thousands OF our
people.
The success Of the plan in Charlotte
speaks for itself. Mills have been
built near Charlotte by subscriptions
payable weekly in small sums for one,
two, four and eight years. but the
favorlte plan is that Of paying 50 cents
per week on a share for four years.
At this rate 900 shares would make
a capital of 100000, a sum sufficient
TO build cotton mill Of about 5000
spindles, with looms enough to weave
their product. Mr.. Tompkins gives
the following estimate for such mill
Employees, men and bOys................. 80
Employees, women and girls............. 60
Pay roll per week, about $3.50
Bales cotton consumed per week,
In North Carolina the products of
the different mills vary greatly. At
Charlotte one mill makes warp yarns,
another skein yarns doubled and
twisted, another makes both warps and
skeins, another white cloth, another
ginghams, another Counterpanes and
towels, another stockings and knit
goods. Those mills which make col
ored goods must have dye works.
If the subscriptions to the stock of
an installment mill are made payable
at the rate of 50 cents per week per
share, and the capital stock subscribed
was $500, 900, then in the first year
the amount paid into the company's
treasury would be about $4,000.
With this money the buildings could
be built and paid for, leaving surplus
in the treasury. The buildings would
be main building, engine room,
boiler room and houses or cottages for
the hands to live in. In special cases,
where the factory was to be built in a
city, these houses might not be built,
as the hands could find board or
houses to rent near by the factory in
the city. Generally speaking, how
ever, it is best to put factory one to
four miles away from a city, and let
the company build and own the houses
the employees live in.
In Charlotte no house rent is
charged, the factories furnishing houses
free of rent. In some other places
rent is charged at the rate of 81 per
room.
Considering that subscriptions were
being paid regularly, and that the
buildings were all,,completed and paid
for at the end Of about one year, and
that the company's income was about
$4,000 per month from regular install
ment payments on subscriptions, then
under these conditions about $500
spindles and appeftaining machinery
could be bought for good cash pay
ment, and the remainder payable
$1,000 to $4,000 per month. Inf
about sixteen or eighteen months from
the time the first payments were made
the mill could be started up on about
one third to one half its capacity, then
the remainder of the machinery could
be added and started up from time to
time as the money continued to come
in by installments.
No dividends should be paid until
the stock is paid in full, and the off
GERS should receive very small salaries.
The mills near Charlotte, built on this
plan, have been very successful, and
some of them during the dull season
have run night and day to fill orders
for their goods. The cooperative
plan if fairly tried would soon make
the South the cotton manufacturing
centre of the world.