The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-01-13
THE WAY IS LED BY
THE CONES
A Revolution in the Cot
ton Cloth Business.
Issue Circular Notifying Trade That
They Will Discontinue Practice of
Guaranteeing Price Against De-
cline for Untitled Contracts.


Greensboro, N. c., Jan. ~, 1904.-What
is considered by all cotton mill men ii
this section to be a step IN the right
direction, and which marks distinct adj
vance in the solution of the present de-
moralized condition of the cotton goods
in market, has just been taken by the
Cone Export and Commission Company
of this city. This firm, being more closely
allied and identified with the colored
cotton goods industry of the South than
any other selling agency, have inaugurs-
ted this most far reaching and important
innovation on the former established Gus.
tom Of selling and guaranteeing prices.
and the very fact of its extended connec-
tions and wide influence promises well
for the success of the movement. Recog-
nizing for a long time, the inequity and
injustice resulting from the prevailing
custom of guarantee of price on colored
cotton goods, they set about recently for
a plan to rectify it. What seemed to the
general public 10 be a sociable reunion
of their mill friends and salosmen from
all parts Of the Union, which was held
here on the 80 of December, it has devel-
oped today was more than that, for be-
sides a magnificent function, in which
every State in the Union was gathered
in the Benbow hotel here, and the most
notable banquet of the year was enjoyed,
another object was to cultivate closer re-
lations between the mill men and also to
discuss general conditions of the trade,
A.. e M IN, MI
lar. The elimination of that earnest con-
ference here has just become demonstra
ted by the issuance today from the office
of the Cone Export and Commission Com
pany OF the following circular letter.
after due and careful consideration
and conference with our mill friends, we
have determined to discontinue the perm
cicus practice of guaranteeing prices
against decline for untitled contracts. Tie
reason for this must be apparent to you
at a glance, and it must also be clear
to you that it is an iniquity and injustice
to the mills. There is no way for the
mills to guard againstha squeeze in
cotton or against a natural advance i'll
cotton, other than to cover their sales
by prompt purchase OF raw material.
1--WE have therefore, definitely concluded
tc discontinue the guarantee Of prices Oh
all our fabrics and to have our friends
and customers distinctly understand tina.
purchase once made is binding upon
them at the price, terms and conditions
at which it is made"
Upon learning of the issuance of this
revolutionary, commendable letter, this
correspondent visited the office of the
and a copy was cheertully furnished by
Mr.. Dreyfus, the courteous secretary Of
the company. He cheerfully gave con
else and intelligent statement of the sit
uatton of the trade ami conditions de-
nanding the departure from the custom
which had brought the manufacturing
business down to an almost absolute
speculative basis. He explained: Long
before the Cone Export and Commission
Company was organized, Southern manu-
facturers Of colored cotton goods adopted
the practice of guaranteeing prices, to
the extent, that if before completion of
q contract the market showed q decline,
the purchaser was entitled to such de-
cline This has proven a serious bar and
drawback as compared to eastern manu-
lecturers, for the reason that while Trey
could safely cover their sales by procnr-
ing raw material Southern mills were not
in a like position unless they chose to
take hazard, frequently entaillng
serious losses. The guarantee OF price
was binding on the manufactures in case
of decline, while on the other hand ii
raw material was not supplied at the
time OF sale and had to be purchased on
a higher basis the mills were committed
to the fulfllment of the contract at the
original figure. In other words, for the
manufacturer it was always; Heads you
win, tails l lose And there never was
a time when this practical question was
a more serious one to the mills than right
new"
After seeing Mr.. Drcyfus, a prominent
cotton manufacturer from South Carolina,
who was at one of the hotels was seen
When told of the matter, before going
to the office himself, TO verify 1t, he
had this to say: 'As ! understand It,,
the Cone Export and Commission Com
pany is right etcrnally right. 1t is
strongly to be commended for taking TINS
action and the mills of the South, making
colored goods, cannot fail to recognize
the great advantage to be derived from
the abandonment of the unjust practice,
ruinous practice l should say OF guar.
antceing prices, and in furtherance OF
their manifest interests will | believe be
glad to give cordial support to this move
ment.'
Andrew JOYNER, +