The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-10-24
COTTON MILL COMBINATION.

AOEION MILL AOMhtN NJ lONs
There has recently been a good deal of
talk in the newspapers and elsewhere of
the formation of a combination which is
10 purchase and operate a number OF cot
ton mills in the South-"so many as may
be purchasabie" with view to develop
ing their business to the greatest extent
possible The combination, it is said.
is to be financed by weli-known firm
of New York bankers which has hereto
fore been prominent in promoting COM
mercial and industrial combinations. A
correspondent in Baltimore, who has OBJ
served the movement writes TO the Morn
ing News protesting against the proposed
trust" and requesting that we issue time
~ warning to the people of the South lest
they be caught mapping" and permit cap
italists to secure control of the Southern
mills
We are not prepared to express an opin-
ion relative 20 what the effect of the COM
bination would be upon the South. We
do not know how the new corporation pro-
poses TO pay for the mills, or whether il
would be the purpose of the concern TO
extend its operations by the building of
new plants. 1t would certainly shut none
of them down. Cotton manufacturing is
paying better profits in the South than
anywhere else. Should it buy the mills
outright and pay cash for them, it might
be a good thing, since il is probable that
the money thus turned loose would
be put into other cotton mills.
If there are 500 cotton factories
in the South at present earning
good interest on the investments. there is
room for three or four thousand more OF
them. each of which could earn good in
tereat.
Meantime. il is to be borne in mind that
the purchase and sale of cotton mills. as
Is true also of other articles, is not
matter of sentiment but of business. II
the owner OF cotton mill can take
good profit on his investment by making a
sale manifestly it is nonsense to tell him,
don't do 1t, as trust will get hold of
the property" Likewise il would be nom
sense TO tell the owner not 10 enter into
a combination which promised increased
profits because ii was Il trust. He viii
examine into the matter from the bust
ness and not sentimental standpoint every
time
And so far as we have been able TO OBJ
serve, the possible formation of trust i'm
cotton mills has not moved the people of
the South to such deep thought as has an
other factor which has recently entered
into the cotton question. We refer to the
round bale There are certain advantages
claimed for the round bale which appear
to be well based. But the point which
is receiving special attention is this; that
the machinery for packing round bales is
owned by two corporations, and is never
sold II is leased. and the lessee is re
quired 10 pay a royalty to the owner upon
every bale packed. The owners OF the
round bale process may agree to purchase
every bale Of cotton packed by their pro-
cess at a price above that paid for cotton
in square ba.es; but manifestly. as soon
as the square bales were driven out of
the market, the cotton crop would be at
the mercy of the round bale people. They
could charge whatever royalty they pleas
ed, and virtually if not actually control
the market. Considered in Itself tho
round bale may be a good thing: but the
fact that IL is controlled by a close cor
poration which will not permit a general
ownership OF the process, causes fl to he
regarded with suspicion by the producers
of and dealers in cotton in the South.
The cruiser New Orleans has left New
York on her long voyage TO the Philip
pines. Our Englsh-built boat purchased
from Brazil has some pretty severe serv-
ice before her, and it is limited was NOT
N. sound as ah., mlghl have hon mhen she