New Iberia enterprise. (New Iberia, La.) 1885-1902, 1900-08-04
COTTON FACTORIES AS MONEY
MAKERS.

manufactured Is q nttle over or n lltIlt
less than three times greater in value than
in its raw state, and why our people
should delay in building cotton factories
am at a loss to know-eXcept that We
are waiting for some one else to do for us
what we do not do for ourselves. and which
will pay US dividends greater than om
other investments.
Our neghbors to the east of us did not
wait, and they struck it rich. believe
our people have had fears that this enter
prise did not pay adequate returns on the
investment. Let me tell you something
on that line.
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 4 to per
cent, thus making an annual return of 8 to
IL per cent, and then set the remainder of
the earnings-the total Of which range
from 20 to % per cent-as a 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, starting on 100000 capital,
it is usual to build up 100000 to 5000.
900 plant in eight to twelve years.
hos hnan ba
One of the large mills in the section visited
started twenty-five years ago with a capi
tai of $l25,000, and after running three
years, had accumulated 900 surplus,
and, adding 800, 900 to this surplus and
original capital, became capitalized at
$500, ,OO0 In about three years more the
stockholders paid in another 500, 900, and
had accumulated an additional 800, 900,
and these made the capital stock $500, 900,
and so on, until the capital stock is now
$500, ,000,a the property worth 81 ,5O0,-
900.
This mill has always paid semi annual
dividend of 5 per cent, and frequently in
between times quietly send the stock
holders and extra per cent. This is true
of nearly all the cotton factories. Irefrain
from giving the name of the mill, as it
would be manifestly unjust to concentrate
attention to one mill, whose stockholders
and officers say that their business affairs
are not public property.
The Danville, Va, Riverside Mill was
sixteen years since by hand
full of inexperienced but enterprisising
men. with $4,000. They employed an ex-
perienced cotton factory superintendent,
and turned the manufacturing department
over to him to organize and operate.
The first seven years no dividend was
but remained on hand as a
working capital, and creating a surplus
fund
= 4At~the~end4of~ssva taie--a<paHs-
was added to an additional sum paid in
and increased the capitalization. The
directors at the first of this year prepared
the history of the mill, and its summary
was published in the Richmond Dispatch
on Jan. Is, and feel at liberty to make
use of it.
The special to the Dispatch reads as
follows: IA remarkable exhibit was made
by the Riverside Cotton Mill Company at
it's annual meeting on Tuesday, the reports
of the officers showing the past years re-
cord to eclipse that of any previous year in
extent Of operations and profits. The in
crease in the output of the mills was shown
to be 100000 pounds of goods over any
previous year, and the total sales reached
81, ZOO, 900 of manufactured products dur
ing the year. The only bad debt was bill
of $50 25, and part of this was collected.
The total earnings for the year were con-
more than 100000, and divi-
dend of 10 per cent on the preferred, 26%
per cent on the common stock was declared,
and still there was large surplus to 60 to
the sinking fund. Starting sixteen years
ago, with a capital of $75, 200, the company
now owns property valued at 100000,
and has monthly pay roll of over $4O,:
O0O." ."-H. H. Hargrore in n. 0. Picayune.