The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-09-30
SOUTHERN COTTON MILLS SHOULD PRE-
SERVE THEIR lNDe PENDENCE.

The Manufacturers Record confirms
the telegraphic report that a trust is
being organized to buy out the South
ern cotton mills. lit is heralded as
sure method of giving the South lar
ger measure of prosperity and giving it
a large share of the worlds trade in
cotton goods Arguing in favor of the
proposed trust, the Manufacturers Rec
crd says:
1T simply means that good many
millions of dollars, all of which, we
are Informed, has been guaranteed by
the foremost 6nanciers of New York,
will be put into Southern mills, and
thus turn loose that amount of local
capital now invested in these mills. in
creasing to that extent the available
money of the South. Take Augusta,
Ca, for instance. and suppose that
$5,000000 of outside money should be
put into the mills of that city. This
would simply release the $5,000,000 of
capital thus supplanted, which would
mean a wonderful addition to the
wealth of that place. And so it would
be elsewhere. Moreover, combina-
ton of this kind backed by vast CAPT
tai, could build many new mills, en-
large those purchased and push the
product of its mills into all foreign
markets. The scheme seems to be
one of vast benefit to the South, and.
so far as the Manufacturers Record
can learn, the men who are behind it
have not heretofore been Investors TO
any large extent in the South. This
vast enterprises which, it is thought
may run up from $50,O00,O00 to $780,
100000, will mean deep interest in
the South by the foremost financiers Of
the country 1t will probably mean the
full turning of the tide Of capital
southwark. and its influence must be felt
in every line of business
The success of the cotton mill trust
in the South would do for that indus
try what the tobacco trust has done for
the tobacco manufacturing in North
Carolina. The tobacco trust has bought
UP few, very few, OF the tobacco
manufactures controlling well known
brands, and there has been an enlarge
ment of those factories and they have
done an increased business. When
the trust was organized, it was widely
heralded that it would work no injury
to the tobacco grower, would not de-
stroy independent factories, and would
not prevent the establishment of other
factories by progressive men. What
has been the result? Let us enumerate
three blighting effects that have fol-
lowed:
l. The price of tobacco in the hands
of the farmer has gone down to a
point so low that no profit is left
to the producers. The reduction has
been in this proportion: whereas far
mer received $3.50 for his tobacco be-
fore the trust was organized, to
day he receives S1.00. The prosperity
of the farmers of Granville, Person,
Vance and adjacent counties has all
been monopolized by the tobacco trust.
1t has earned wonderful dividends; the
farmers have gotten little more than
the cost of production.
?. The Independent factories, except
a very few, have been crushed. Go to
Winston, Durham, Mt Airy, Reidsville,
StatesviIe, Salisbury, Oxford, Hender-
son and the other towns which promis-
cd to become the homes of many pros
porous tobacco manufactures, and
what do you findy In some of them
there is not factory left that manu-
only one great factory, the big ones
all having been purchased or sold out
under the auctioneer's hammer. Only
one or two small concerns, not i'll the
way of the trust, lives. In Winston, a
few of the stronger concerns with large
capital are doing well, but the NUM-
same is true in all the other tobacco
towns LIN most of them YOU can
find large buildings that cost large
sums living idle or used only for stor-
age purposes. Why? The trust suck
ed the blood out of them.
5. No new factories are opened. There
is plenty of capital that would be glad
to invest money in the manufacture or
tobacco If there was an open field for
competition. 1t is well known to them,
hawever. that the tobacco trust kills
where It cannot buy, and that no small
or even comparatively large capital can
cope with a concern with millions OF
capital which does not hesitate to kill