The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-06-02
PROSPERITY-WHER rs THE CAD
VANCE AGENT.''
The last issue of the Philadelphia
American has this to saw.

American has this to say:
The failures of five large cotton mills
at New Bedford. Mass, during the month
just closed have caused a lively unrest
as to the condition and prospects of our
textile industries i'll general especially of
the New England corporations similarly
situated to those that have gone under
The significance of these failures can be
better appre ciated by keeping in mind that
the involved corporations operated about
Cne-sixteth or close to two per cent of all
the spindles in the United States. What is
more alarming than the mere failures is
that the true condition of at least two Of
the corporations was hidden from their
stockholders who were lulled into ~cOnfi-
dence by the continuance of the mills to
pay dividends right up to the time of their
failure. 1t is made apparent that though
figuring out profit they have been run
ming at IA loss ard pling up debt while
distributing dividends among the stock
holders.
This seems to be quite a failing of cor
porations managed by Salaried officials. and
when we consider the weaknesses Of hui
| man nature it is hardly surprising that it
should be so. Men drawing salaries have
| great interest to keep running the mills
| from which they draw their pay. From
running the mills at loss they do not
suffer. Consequently they are tempted to
keep the mills running at loss and pile
curtail. If not suspend production. for the
stockholders bear the loss while the salar-
! led managers continue to profit. And it is
| just here that comes in the temptation to
| hide true conditions from the stockholders.
| hide frCm them losses. the knowledge OF
| which might be expected to induce them to
! order a shutting down of the mills and con-
seo,lent cutting off Of the salaries of the
| managers So we have the inducement for
! the hiding losses and the piling up or
| indebtedness such as has been brought to
| light by the failure of two, at least. OF
| these Massachusetts corporations.
The cause leading up to the climax or
| failure has been undoubtedly the manufac-
| ture and pilng up of goods far In advance
of the demand. 1t is the penalty that
many men have paid for pinning faith on
revival of demand for manufactured
| goods to follow Mr.. McKinleyS election
| The hoped for demand net having material
| lied those who extended production ON TINS
| false expectation have been left in the
lurch left with bills payable coming due
| and fabrics piled up in their warehouses;
that they were unable to sell and turn into
money. So they are left without the abli-
! ity OF meeting their Indebtedness and mover
on the brink of disaster-Ihe American
The judicial hanging of lot of lyins
editors would be good investment
They lead their gullible dupes into tht
| slough of bankruptcy, and, by the time
! these realize it. there is another jOblO
of Misrepresentation and the fools for
get the old lies and are running, will
their tongues out. after the new ones
like pack of hounds in full cry.
The Bible is right when it says
Though thou brayest a fool in NOR
tar with a pestle, yet will his foolish
ness not depart from him."