The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-02-20
Regarded as Important Step
In Southern Development.
NEW WORKING CAPITAL
twill Enable the Southern Mills to Be
Operated Under Modern Economic
Conditions. and viii Open to
Them Worlds MoneyMarket
especial to The hines .p,ypnteb {,

correspondent OF the Manufacturers Rec
ord, writing from New York, gives some
details regarding the Southern cotton mill
combination, This has been organized on
tho basis Of s6,00O0o of bonds. s7.Ooo,OOo
Of preferred and 100000 Of common
stock and at present includes about sew
enty mills, but the plan Of organization is
made sufficiently elastic to provide the
money to take in q large number of I'D.
ditlonal mills, a good many Of which
are now under investigation The COM
pany will have s2,OOO,oOO cash in its treas
ury, and contemplate the establishment
Of finishing plants and the handling Of
the entire business on such a basis as to
reduce the cost of production and the
marketing of cotton goods as much as
possible. thus eliminating many Of the
expenses which have heretofore burdened
MILLS that lacked ample working capital.
AS this combination puts about s6,OooOo0
of fresh capital into the cotton mill in
terests of the South and at the Same
time leaves the control of tho mills in
Southern hands. 1t Is regarded by many
as one of the most important steps which
textile development of the South.
MODERN ECONOMICS.
The Manufacturers Records CORE
spondent. referring to this says:
Prom commercial and Industrial point
Of view, this merger may be considered
the most important Southern transaction
that has UP to this time been closed 1t
means the removal Of some Of the main
obstacles in the way OF profitable cotton
fo,r for {1,a
try; 1t means the Introduction Of modern
economical methods. access to the worlds
money markets, as well as labor saving
and money-saVing mechanism, reaching
the worlds cotton goods markets, and,
What is OF more Importance, ability to
employ the best business talent afforded
by the worlds best brains markets Ev-.
eryone at all familiar with the history of
cotton spinning of the South knows that
the greatest difficulty that many South
ern cotton mills have had to contend with
has been lack Of working capital. Many
mills that on their merits were entitled
to all credit they required in buying raw
material and carrying stock have been I'M
able to obtain 1t except at exorbitant
rates of interest. by reason of remoteness
from the money centers, and another great
difficulty has been that in hard times
the isolated mills were absolutely at the
mercy of the middlemen in finding q
market for their output. ssta4's!.2S'F
ADVANTAGE or POSITION.
That the Southern mills, Handicapped
by oil these difficulties, have, with few
exceptions. been able to pay dividends. is
"a demonstration of the extent of these
Inherent and nalienable advantages which
natural conditions vouchsafe. While this
first Important step In the modernization
OF Southern Industrial methods will bring
highly beneficial results to the stockhold-
ers Of the mills involved, 1t will at the
same time not be without beneficial re-
suits to cotton growers in the vicinity
OF the mills affected by this consolidation,
for 1t goes without saying that when the
final balance is struck every charge upon
cotton and Its products falls largely, il
NOT wholly, on the grower. Therefore,
every saving inures in greater or less de-
gree to the growers benefit. rs
The financial plan Is very simple. One
OF Its features will be to add several mil
lion dollars, all Immediately available. to
the working capital of the mills con-
cerned. This will como into the South
from New York and other Northern cities.
leaving the Properties intact and in ac-
tual possession Of the original owners.
who will continue to control tho majority
OF the company's securities A strong
Underwriting syndicate, in which may be
found names that are seldom found out
side of the very largest enterprises stands
piedged to provide all the cash REQUIRED
IN perfectinE the Organization
NEW OIL TERRITORY.
Tearing upon the development OF new
OIL territory by reason Of decreasing
STOCKS OF oil throughout the country
consumption for some time having been
largely in excess Of production a CORE
sPondent Of the Manufacturers Record
writing from Barboursville, Ky, tells Of
the rapid expansion OF activities in four
fields IN that State and Of the estab-
lishment OF another field in Tenn essee
He writes: - -
Tho Bob's Bar field in Tennessee
and the Wayne county, KY, fields We're
the first developments to be made, and
these We're rapidly followed by the dis
covery of oil In Bath and Knox
counties. The Wayne county field and
the Bob's Bar field have been producing
OIL steadily for some time, and, con-
proven. These two developments have
yielded up to date 10000 barrels Of crude
oil. which Is In storage tanks at SOM
erset awaiting the completion of the main
pipe line. Nearly one hundred wells
have been drilled In both sections with
capacities ranging from ten to two hun
dred barrels daily. The Knox county
field has made more rapid strides than
any other in the State. Although scarce
ly a year old, nearly three hundred wells
have been drilled, and new wells arc
coming In at the rate of twenty a month,
Most OF the wells In the Knox county
field We're drilled into shallow sand.
and many operators doubt their lasting
quality.
Bath county developments have result
ed in one hundred wells. In most of
these wells the grade OF oil is different
from the other oil production of tho
State The Bath output is a heavy. black
grade, more suitable for lubrlcatng pur-
poses than illuminating. and the price
| paid for 1t Is only SIS cents q barrel Near
| the Bath county field is situated tho
new field of Morgan county, which has
| been attracting a great deal OF atten-
| ton recently, TGere the deepest pro-
| ducing We'll in the State is located and
the capacity shows UP to be not less
| than one hundred barrels daily.
| GOOD PRODUCERS.
1 "Cumberland county IL also attracting
a great deal OF attention recently, Here
about twenty wells have been drilled
most of which arc good producers. Al
| present about three hundred wells are
in course of drilling In different sec.
tions OF tho State, and In Tennessee /,
| great deal OF validating is going on
Nearly fifty counties arc being operated