The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-05-13
THE PRICE OF
COTTON BACCINC
Savannah News.)

The cotton planters of the South may
again have to resort to cotton sheeting
as a covering for their cotton. and to
seek some substitute for ties to hold the
bales in shape. These needful supplies
! are now entirely controlled by the trusts.
Last year there were half dozen compe-
titors in each line. This year there are
none. One concern has absolute control
OF all the cotton bagging in the country,
and another has absolute control Of the
cotton ties.
The American Manufacturing Company,
of New York, controls the cotton bagging
Of the country and the American steer
Hoop Company, which is included In the
great Federal Steel Trust, controls the
tie output. The latter is comparative
ly recent amalgamation Of several con-
Germs. The Ludlows. of Boston, Mass. are
still In the cotton bagging business. but
they are in close alliance with the Ameri-
can Manufacturing Company and make
exactly the same terms and prices.
The result is seen in the changed quo
tations For several months the quota
tions on ties and bagging have remained
practically unchanged. Today's quota
practically unchanged. Todays quota
tions quotations will be found to differ
considerably from those which have been
in force heretofore. An increase of
about 21a cents yard has been made in
the price of bagging, and it is not unlike
ly that there will be further increases.
The trusts have in fact given notice that
further increase in prices may be ex-
pected in June.
While nominally the bagging business is
being conducted both by the LudlowS and
the American Manufacturing Company,
both send out the same price list and
make exactly the same terms. Both de-
clined to sell any bagging for this year s
crop until this week. and both opened at
the same prices. Their terms are spot
cash and no credit.
All the cotton ties used in the United
States are now made by the Federal Steel
Company as agents for the American Steel
Hoop Company. The latter is an ANAL
gamation of the several different concerns
which were engaged in the hoop and tie
business last year. The result Of the
amalgamaticn was felt Immediately. From
60 cents, the price at which most of the
ties were sold last year, the price imme-
diately jumped to rs cents, from which
It was run up to $1.25, at which price
ties have been quoted for the last several
weeks. The latest dictum makes the
price $1.31 spot cash and $1:36 for Au-
gust delivery This is to merchants in
large lots. To farmers the cost will be
to 10 cents a bundle more.
With the complete control Of the bust
ness now enjoyed by the baggng and
tie trusts 1t can very easily be seen that
these concerns are in position to squeeze
the farmers of the South at their pleas
ure. For several years the cotton plant
ers have secured these supplies at rea-
sonable prices, but this will evidently MOI
be the case this year. Being protected
by heavy tariff against foreign compe
tition and having knowledge of the fac
that the farmers Of the South are in {
more prosperous condition than for sever
al years past, and with the assurance o
large demand for the present year, th'
two trusts realize that they have the
planters at their mercy, and that the
time is ripe to multiply their profits. Il
will be alleged, of course, that higher
prices for the material entering into these
products account largely fer the increased
prices. There will be just enough truth
in this to lend color to the assertion, but
it is easy to predict that cotton grow
ers of Egypt India and the rest of the
world will pay no such prices for their
baling materials this year as will the
Southern cotton planters.