The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-09
THE SUN, SUNDAY, JANUARY 8, 1895.


OF goods, manufacturers complain because they
cannot work their employees more hours and
make more goods, when they have to pay those
employees by the piece, and the more goods they
mako the more money IL costs them. This IL
not only difficult for n person not familiar with
the business to understand, but It 10 difficult for
the employees In the mills to understand. and it
is one OF the disturbing elements Of the present
situation.
The manufacturers put It this way: When
there is an overproduction Of goods the remedy
is either to stop manufacturing altogether or TO
curtail production until the demand catches up
with tho supply. That is the only remedy.
There are in the United States a certain number
of mills making the same kind OF goods. They
make more of those goods than the people will
consume. In order to reduce the amount Of
goods mnde 1t Is necessary that some OF these
mills stop manufacturing entirely, or that all Of
them manufacture less than they arc manufac.
turing now. If a number OF these mills shut down
entirely and the other mills continue running, tho
loss from curtnilment falls entirely on those
mills that shut down. II all OF the mills con-
tinue running, but curtail their production pro-
portionatoly sufficient to enable the demand
to catch up with the supply, then the loss falls
equally on each. Heretofore, as stated early in
this article, the overproduction of cotton goods
has always been met by the Fall River M ,nufac-
tuiUio - u tuEIalluCnlO u pTOuuCllOI. IL ndu
to be met by them. because they alone manufac.
tured. When other manufacturers came into
the field they did not curtail when there was an
overproduction, as tho Fall River manufac-
turers did. This was all right 80 long as tho
number OF outside mills was small and their out
put was Insignificant But now the OUTPUT OF tho
combined outside mills Is greater than that of
the Fall River mills. Where q few years ago a
weeks stoppage at Fall River was sufficient to
enable the demand to catch up with the supply.
now a ten weeks stoppage is not sufficient il the
outside mills keep on manufacturing. AS the
outside mills increase in number and In product.
Fall River, to handle an overproduction. must
stop her mills longer each time. The logical
outcome of this will be that finally-tho outside
mills continuing to grow-Fall River will have
to stop altogether.
FORCING A CCRrAILMENT.
In other words. Fall Rivers $45. Ooo. 900 of
capital will become SO much old iron. Now, in
order to protect themselves, 1t is necessary for
the Fall River manufacturers to compel the
outside manufacturers to curtail with them.
In order to impress on the other manufacturers
the necessity for a curtailment it is necessary
for Fall River to keep her mills going. keep the
market overstockcd with goods, and mako the
business Of her competitors Improbable. At
the present price Of cotton goods there is n con-
siderable loss to Fall River. There is hardly
Il shade of profit for her competitors who can
manufacture the goods more cheaply than she
can. So long as there Is nm overDrOduction of
goods the selling price will not increase. The
law of supply and demand will rather force
it down, and II 1t gees down. then the outside
mills which are now selling q shade above cost
will have to sell a shade below cost or have to
shut up altogether.
The strength of Fall Rivers position is Just
herp-fhey have cot money and tho othar fallo,yS
have not. That Is to say. they have a larger
amount Of money; enough. probably. to tide
them over. and they can afford to hold their
goods while their competitors with newer fac
tories, no SURPRISES. and less ability to borrow
money. can't afford to hold theirs. The rcduc-
ton Of wages of IL 10 per cent. will not
make up the difference between the cost and tho
present selling price of their product, but it will
bring the two nearer together and will enable
them to carry out the plan outlined above.
1t may be said that this plan smacks of the
trust that this is the preliminary step
toward the formation OF a gigantic trust to con-
troll the entire cotton manufacturing industry
of the country. 1t certainly is an industrial war.
Whether it will succeed or not depends wholly
on the strength and resources of the Fall River
mill men and tho length Of time that the out
siders can hold out.
REMEDIES PROPOSED DY TIE OPERATIVES.
The manufacturers insist that this plan is the
best for themselves; that. in fact. il is their SAL
walton; and that 1t is best for their operatives.
They point out that il they do all the curtail-
ing. the operatives will lose everything. be-
cause finally the mills will have to shut down
altogether. But the operatives cannot see this.
In place of a reduction Of wages they proposed
three plans, as follows:
First-It being the general opinion that there will
h. n IT, .-t- l. - 49,.
manufacturing will be in a far more prosperous con.
dillon than at present. we request our manufacturers
to postpone the present reduction until the LIST of
March II there is no Improvement At that time. we
will hold another conference with a view of settling
the wage question.
SecOnd-BelievirR that the reducing OF wages is not
n remedy for an overstocked market. we respect
fully request our manufacturers TO work four days
per week until the LIST of March. II there Is no i'm
provement at that time. we will hold another con-
ference.
Third-f either of the above propositions is not
accepted. and we cannot settle the question salts
factorily. we are willing to submit our case to the
State Board Of Arbitration, wages to remain the
same until the State Beard makes its report.
THE ALTERNATIVE
Suppose. now. that tho plan OF the manufac-
turers to force their competitors to Join with
them and curtai! production is not successful;
what will be the outcomei This question was
put to a great many of tho mill owners. Some
OF them looked blank. Others said that there
was but one remedy left; that was to reduce the
cost OF manufncture to meet he competition. and
then 1t would come to a fight for the survival OF
the flttest. That lie. n fight In which the millions
invested in the one place or The other would be
lost. As cotton is at present selling at less than
the cost Of raising 1t, and as all other expenses
are down to the limit, there is but one way in
which reductions can be made. That is in the
wages of the operatives. and II the reduction
must all come from the operatives, then It must
be a reduction OF at least 25 per cent. instead OF
the reduction OF II 10 that has been made.
The last conference that was held between
the employers and employees was on the
2lst of December. 1t was then that the
employees presented their proposition and
the manufacturers attempted TO explain to
them the necessity for the cut down. They