The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-27
MILLS HIT BY THE
RISE IN COTTON
Managers Say Eight Cent
Cotton Will Break Them.
nnII AhAHE MN npOEIT
COULD MAKE NO PROFIT
UNLESS COTTON GOODS SHOULD
ADVANCE ALSO.
THE ADVANCE IN COTTON AND IN GOODS
Yarn Mills Suffer Most from the Advance While
Mills Making Goods for Domestic use
Come Next. Farmsrs Bull
ing the Market.

The continued advance in the price of
cotton and the talk of the Southern
Spinners Association about closing down
the mills il the advance persists much
further has created something of a rip
pie among cotton buyers and cotton mill
men.
A leading cotton mill man said yeSter
day that it was certainly true that the
cotton growers of this section are hold
ing their cotton as is shown by the
small quantity that has been marketed
here ND to this time He was inclined
to think it risky for the farmer to hold
his cotton too long in an attempt to
bull the market and thought that course
one of the weak points of the present
market.
AS to the effect of the rising price
of cotton upon cotton mill dividends
the opinions Of mill men differ some
what but all agree that the advance
will hurt some mills vastly more than
others, and that unless there is a parallel
advance in the price of COTTON goods the
point will soon be reached where the
increase in the cost of raw material
will wipe out the mills margins of
profit.
The mills that at present are suffering
most heavily from the advance in raw
material are the yarn mills while colored
goods, plaid, denim, and gingham mills
follow about in the order mentioned. In
general the mills that make the class
OF goods, that find domestic consumption
only suffer much more from dear raw
material than those that depend ON an
export trade.
Thus far the mill men say that the
advance in the price of cotton goods
and yarns. has not been commensurate
with the advance in the price of cotton,
save in few classes OF goods; and
while the prices of the finished pro-
duct may and probably will follow the
rise in raw material ultimately the pro
cess will require time and Is not likely
to take place this season. ALL the local
mill men are positive in the statement
that the mills of the State cannot be,
with a few possible exceptions, run
proftably if COTTON goes to cents a
pound and cotton goods and yarns com
tinue TO sell at present prices. Some
of them believe that cotton will go 10
cents. All the same the mills of the
State are not laying in stock or cot
ton but will, as heretofore, depend upon
the local markets for supplies as needed.
HAS the rise in the price of raw cot
ton induced similar advance in the
price of cotton goodsW | asked an off
cial of a mill that makes eolored goods.
by no means, in all cases." was the
reply. '.In ginghams | am told it is hard
to get an advance of 1s or cent gard
over this period of last year, though
| cotton was selling at 5 then and is sell
| ing at 6la cents now. When cotton is
| selling at 615 cents the raw material
| constitutes about 40 per cent of the
| total cost of this grade of goods" The
advance of ~ cents a pound in cotton
would, according to this estimate, in
| crease the cost to the mills OF producing
| ordinary colored goods practically ten
| per cent, while an advance of cotton to
) cents would increase the cost of pro-
| dncing the goods nearly 20 per cent.
| My informant said that there had been
a slight increase in the prices of hosiery
yarns, denims. ginghams, and certain
classes of brown goods. "But We" he
| continued, fare selling goods at 5A
| cents that sold for 6A cents three or
four years ago. The supply of goods
| on hand however is scarce and | look
| for an advance in the price of cotton
goods all along the line if cotton com
| tinqIes to rise. So far as | am com
cerned I should prefer for cotton to