The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1896-04-16
CAN'T COMPETE.

CAN'l COMPElE.
NEW ENGLAND COTTON MILLS CAN'T
HOLD THEIR OWN
Against Those In the South In the
Coarser Ooods-The Lawrence Man.
ufacturing Company of Lowell,
Mass, Admits that It Cannot Meet
the S0uth's Competitlon-r1ust Come
to the Cotton Fields or Quit.
Mr.. Richard H. Edmunds. editor
Of the Manufacturer Record, in the
last issue of that paper. in referring to
the sonthward trend of cotton manu-
featuring, says:
The decision two years ago Of some
Of the largest cotton mill companies in
New England to build mills in the
South, such as the Massachusetts, Mill,
at Rome, and the bright, at Gadsden,
was not more significant of the destiny
OF the South as the controlling power
in cotton manufacturing than the ac-
tion taken few days ago by the Law
renee Manufacturing Co., of Lowell.
For several years the Manufacturer
Record has persistently insisted that
the New England companies manu-
featuring coarse cotton goods would
be compelled to quit that line of busi-
ness or build mills in the South. Every
investigation made by the highest
New England authorities has demon
strated the correctness of this position.
A few days ago the directors of the
Lawrence Manufacturing Co., Of
Lowell, company having a capital
of s1,5oo,ooo and operating 10000
spindles, voted to discontinue the man
ufacture Of coarse cotton goods and to
recommend to the stockholders to sell
the entire real estate, machinery and
plant of this part of their mill, paying
back in cash to the stockholders the
receipts to the extent of one half of the
capital stock, $4,000, and to con-
fine their operations hereafter exclu-
sively to the hosiery department OF
their business. The sheeting depart
ment, which IS to be closed, now ope-
rates about $1,000 spindles.
Mr.. c. p. Baker, the treasurer of the
company, who recently went South
with view of locating cotton mill
in that section, in an interview with
the Lowell Citizen, said:
owe intend to stop the manufacture
Of cotton cloth at Lowell for good. At
present half of our product is hosiery,
and the balance is cloth. We intend
to keep on manufacturing hosiery.
Outside of hosiery, the Lawrence Com
pany has always been a manufacturer
of coarse cloths, its largest product be-
ing sheeting. The Southern mills
have become very large makers 81 this
kind of goods, and we see no hope,
with their low wages, of being able to
meet it at a profit here. Instead of
going there, as some corporations
have, or spending good deal OF
money here to fit up for the manufac-
ture Of fine goods, the directors Of the
company considered it best to return
part of the capital to the stockholders,
retaining at Lowell the hosiery busi-
ness only.
"This crisis has been pending for
three or four years, or ever since the
South commenced the manufacture ol
coarse goods largely
Replying to the question as to what
advantage the South has over Lowell
in the cost of goods, Mr.. Baker stated
that it was from one and one-halt tc
two-cents per pound, and this is on &C.
count Of low-priced labor, which form.
erly worked at farming. Their cos,
of manufacturing, said Mr.. Baker
which is the cost of labor, is 80 pei
cent. below ours which is due to a yer,
large surplus of help; and as this il
nearly all paid by the piece, it doe
not make much difference in the cos
whether the labor OF the South is skill.
ed or not. While the Southern mill
do not manufacture enough goods t
supply the American trade. they manu-
facture enough to make the price, ane
we have to meet it. These good
nearly all 60 to the West and South
The treasurer Of one Of the New Eng
land mills, who lately returned from
the South, in reply to question which
| l asked as the the a'Lount of surplu
labor in the South, said that there wa
enough to last for generations"
The action of this old -esta blishec
company, which has been in successful
operation for so many years, in decid
ing to sci, its entire equipment de
voted to manufacturing sheetings ant
retire from that part Of the busines
permanently, shows that all that tn
Manufaeture,s' Reeord has eve
claimed and ever predicted in behal
of the South and its advantages 70
cotton manufacturing is now being de
monstrated. Ridiculed as the predic
tions Of this paper were for many years
its statements receiving ten or twelv
years ago but scant credit, even in th
South, the world is finally being forcet
to realize by the stern logic Of event
that this section in producing cotto1
goods at lower cost than any othe
place, is setting the price for the world
and following this the business mus
inevitably come to the South. 1t
, only another demonstration of the ur
, equalled advantages of this section f
manufacturing, advantages which hav
brought about the ful6llment of OF
| nredictions in regard To irnn-makinp