The Daily Texarkanian., 1899-05-15
CUTTON FACTORIES.
A Good Paying Investment IN
the South.

commercial CluO, sdlu 10 q Ddllds |
News reporter yesterday:
"The committee from the Com
mercial club having in charge the
proposed farmers and Merchants
cotton mill No. has every reason
to be encouraged and is confdeut
of the movement. A vast amount !
of information concerning the es-
tablishment of cotton mills in the
south has been received, practically |
all of which substantiates the pre-
vailing idea that as an investment |
but few Enterprises are superior to |
cotton mills. One letter received |
from an authentic source stated |
that $ll 900 profit had been made |
in one year on mill costing $35, ,O0O !
Information also from an undoubt-
ed source states that three separate
dividends of 10 per cent each were
declared in one year on a mill four
teen miles from any railroad Nu-
merous other equally encouraging
reports were received.
"Some of the dividends have been
as high as 36 per cent, and but few
under 10 per cent. The customary
course in North and South Carolina
has been to declare an average
semi annual dividend of to per
cent, thus making an annual return
of 8 to II per cent, and then set the
remainder of the earnings-the
total of which range 20 to % per
cent-as surplus, and in two to
four years double the capacity of
the mill, and build mill No 2, and in
three to four years again build mill
No. 3, and then in the same length
Of time build No, 4, and thus. start
ing on 100000 capital, it IL usual
to build up a $4OO, 900 to 5000, 900
plant in eight or twelve years. This
has been the customary course.
One of the large mills in the section
visited started twenty-five years
ago with capital of 1925, 600, and
after running three years had &C
cumulated $75, 900 surplus, and add
ing SlOO,OOO to this surplus and orig
inal capital became capitalized at
$1,000 In about three years
more the stockholders paid in an
other 500, 900 and had accumulated
an additional 100000 and these
made the capital stock $500, 600 and
so on until the capital stock is now
$500, 600 and the property worth 81,
100000 This mill has always paid
a semi-annual dividend of 5 per cent
and frequently in between times
sent the stockholders an extra 5 per
cent. This is true of nearly all the
cotton factories. / refrain from
giving the name of the mill, as it
would be manifestly unjust to con-
centrate attention to one mill,
whose stockholders and officers say
that their business affairs are not
public property.
THE Danville, Va, Riverside mill
was organized sixteen years since
by handful of inexperienced but
enterprising men with 5000.
They employed an experienced cot.
ton factory superintendent and
turned the manufacturing depart
ment over to him to organize and
operate. The first seven years no
dividend was withdrawn, but re-
mained on hand as a working capi-
tai and creating a surplus fund.
At the end of the seven years this
surplus was added to an additional
sum paid in and increased the cap
| itali2ation. The directors at the
first of the year prepared the histo-
ry of the mill and its summary was
| published in the Richmond Dispatch
on Jan. 10, and | feel at liberty to
make use of it, The special to the
Dispatch reads as follows; "A re-
markable exhibit was made by the
Riverside Cotton Mills company at
its annual meeting on Tuesday, the
reports of the officers showing the
past years record to eclipse that of
any previous year in extent of op.
Grafton and profits, The increase
IN the output of the mills was shown
to be 1000 600 pounds Of goods over
any previous year. The only bad
debt was a bill of $56.25 and a part
of this will be collected, The total
earnings for the year were consid-
erably more than 100000 and a
dividend of 10 per cent on the pre-
ferred and 26l per cent on the com.
mon stock was declared and still
there was large surplus to 90 to
the sinking fund. Starting sixteen
years ago with a capital of $75, 600
the company now owns property
valued at 50 100000 and has a
monthly pay roll of over $40, 900