The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-06-17
| STRUGGLE WITH
DOWN EAST MILLS
Arguments Given for the
Merger in Dixie.
VhMKFFS' GFNIIiS SHOWN
YANKEES GENIUS SHOWN
How They Meet and Overcome Our
Natural Advantages.
CONSOLIDATION THE POWER EMPLOYED
Thus Argue the Merger Advocates, and Pro-
pose to Fight New England With Its
Own Weapon. The Freis and
Underwood Plans.

Special to the News and Observer.)
Greensboro. n. C, June 14-There has
...l for some weeks a most interesting
,.uuctition between two presumably
-...I svldicates to obtain control of The
...tharn yarn cotton milling interests.
. November of last year, Mr.. II. E.
r.l.5. a large capitalist of Winston
-...m. This State, and largely interested
tu corporate property, such as banking,
.|i.rtric street railway, light ana power
properties, and one of the largest own
.r- VI cotton and WOODEN mill properties
g.. North Carolina and Virginia conceive
plan ty which the immense waste in
-~..arutc administration of individual
properties of the numerous cotton mills
uf the South, will its conglOmerate cost
of individual freight, fuel, sale and out
nut expense added, might be
avoided. In conjunction with other
Inrge mill owners and capitalists
OF The South and strong, financial back
n2 and support from New York and
Boston parties, he set about arranging
q deal whereby all these properties could
.a merged in a common administrative
and expense pool arrangement, 50 that g
mjuimization of cost in all departments
could be effected. The reasons for this
merger or consolidation are trite in the
business world as to other properties,
hut in this instance Will be found in
tsrcsting to New England mill interests.
Briefly told the argument is sound,
togent and convincing to Southern mill
men. AS follows: Several years ago
southern mills were making a great
profit on the investment, so much so that
uoW mills were constantly being built
ont of dividends from old ones. The New
England mills were said to be suffering
from The effort to compete with the out
put Of these mills which had cheaper
labor, longer hours, better climate,
cheaper fuel, freights, salary accounts
and administrative pay rolls. For the
past two years, however, it has been
discovered that for some cause, with all
of these disadvantages the New England
-ninncrs have reversed the conditions
and are giving the Southern properties
q life and death struggle. Investigation
showed that the New England genius
Nh,rh always masters trade conditions
when put to the test, had devised a COM
uuuity of interest plan whereby savings
effected in other respects more than
balanced the natural advantages which
the Southern mills had in regard to the
cheaper rates Of labor, etc. The Fries
merger means nothing more nor less
than "A legitimate effort by means of a
like consolidation and community of
ownership and control of Southern yarn
spinning properties to again give them
the advantage Of equal modern business
economies and methods as their Eastern
brethren, with the old advantage restored
of better natural conditions of labor, eX-
I"nso of raw material, contiguity to pro-
duet, climate, etc, thus shifting the bur
den of competition from their shoulders
OH to those Of the East again.
1t is learned that in the contamination
of this deal, the promoters have been
compelled to buy several properties out
right, but that in most instances the
merger scheme, with pooling of part
Stock, reissue of other, and substitution
OF common stock, etc. has been emf
h'atlE successful. with most of the mills,
whose cooperation has been considered
necessary of indispensable to the success
Of tho movement.
IL is an immense undertaking, but it
@ reliably stated that its f~ruitien is
absolutely essential to the continuation
". successful operation by most of the
solvent Southern mills. and the an
""jnccmcnt Of it's perfection may be eX-
""i"d any day. Prominent. in the ad-
||"1"mont of the enterprise are Messrs.
PRIZES Brothers. of Winston-Salem; a.
Vs. haywood and Dr.. Laird, large millers
.. law River; J. H. Holt, of the Bur
."-'on mills. and other owners of the
"'E"#t mill properties in Georgia, South
~"'"Iua, Alabama and Virginia. other
M''EraJcd parties arc Attorneys F. L.
...'"r and Clement Manly, of North
"..tIHE}. w. w. FuIlpr. of New York,
al counsel of the American Tobacco
..II any, and George Cortelyou, f. G.
-..'.5 and L. Is. Walters, Of New York;
>trudWick. of Richmond, Va, and
hnancicrs. There was a conference
bGtWccn some of these parties to-
". Mir. Fries having returned from
|" York, but no definite information
been given out, this party being
'|IF business and keeping out of print
something tangible and complete
o"en accomplished and the last link
ihat makes the great movement
i and actual verify.
.'Ier merger scheme was COM
'd ln competition with the Fries
+"oFc detailed, by +. /. Underwood,
'|"7rtul New York promoter, who
''"5 motion with Leonard PaulsOn, of
f'tk, has been very busy in the
.oF q month holding meetings with
H4h, a great many of whom have
yea into an agreement to go into
.'.''r form of consolidation. more in
nature Of a pot luck trust ar
"'ht, whereby the Underwood syn
- Us to control 60 per cent. of the
' the members of each corpora
retaining 20 per cent.
#aId that his scheme, while to
-f.,. '>l'hl Interfering with the COM
r..-. merger contemplated by the Fries
th, Pidh, VIII not seriously injure
~+AhfS5 of the latter &C tho nr0ppr-