Daily Kennebec journal., 1905-05-18
MARGIN OF PROFIT.
In Fall River Mills Fixed
by Governor Douglas.
1t Has Not Yet Reached Figures
Warranting an Increase.
Operators Expected Such Decision--Manu
turers Saw No Other Course.

BO;tOn, MAY li.-'TcVernOr WIN. Il.
Douglas. through who's, Intervention
the Fail River textile strike was set
tied and who was empoMe red to fix =
margin of profit at which operatives
were to receive an increase of wages,
| today, made public mis- finding. The
governor reports that the conditions
during the months between January
and April We're not such as to warrant
an increase in wages during that period
The teXtil" STRIKE which affected
about 2GW0 persons. was inaugurated in
July %, 1904 10 resist Il Cut of 12h per
cent. in wag IS. The strike lasted nearly
six months, the end Of which time the
operatives returned to work with the
reduction in effect. The strikers went
back in consequence of the amicable/ in j..
IcrvcHtion of Gov. Douglas and the
agreement was that the governor
should. after investigator, decide up
CT what margin the r,ilI owners could
grant an increase of ) per cent. up to
April 1 of this year.
His Excellency finds that it would're-
Iuire a margin of "A and 3S-1OOth cents
between the price of clct1 and its equi-
valent in manufactured cotton to pay
1 IL.
wages earned during the time which
his investigation cover,., This margin
would allow 6 per cent. for mill divi-
dends and per cent. fer annual de-
probation.
While the exact margin of profit
which prevailed during the period Of in
vtstlsation is not known. since it is a
matter of which the manufacturers
ha1 In
that it was under 20 cents. Governor
Douglas does not directly make any
re, ommendation, but submits figures
margin ere based.
The Cover nor. today, sent the follow
ing letter to Nathaniel b. Borden.
chairman of the manufacturers COM
mittee, and to Jas. E. Tansey, president
"f the Textile Council at Fall River
AT the close of the strike i'm Fall
River. in January last, / agreed to in
vestigate TIE matter of margins, and
submit my conclusions as to what
average margin should prevail on
which the manufacturers should pay
dividend of per cent. on wages
earned from that time to April /. 1905.
"In accordance thereNith. l forth
with submit to you my conclusions.
after April 1. 1905 began investi-
cations by submitting to such of the
corporations as were affected by the
strike list of 10 questions to be an
SWertd by them. and certified under
the hand of the treasurer of the re-
spcctive corporations. The questions
were prepared by Charles F. Pidgin
chief of the Massachusetts bureau of
statistics of labor. whose assistance
throughout the investigation has been
Of great value to me, and were careful
ly examined by me before they were
submitted to the corporations affect
ed. They were as follows:
"1-Cost per spindle (present valua-
tion).
"2-Percentage of cost required for
dividends.
":-Percentage of cost required for
dcprecia ton.
"4-Pieccs of cloth produced by So
0n0 snindles i'll one week averaged for
10 weeks).
"5-Pounds of cloth produced by So
600 spindles in 81 weeks. equivalent to
units of 45 years 64x64 print cloths.
"6-Running expenses exclusive of
cotton-one week.
T-Average price of middling up
lands cotton per pound from Jan. 20.
1905 to April l. 1905.
"S-Number of pounds of cotton re-
qurcd to make As yards Of cloth (width
in inches) (pick).
''9-Average selling price for cloth
per yard between Jan. 20. 1905, and
April 1905.
''10-Amount received for waste and
by products, per week.
Nineteen corporations including nine
Of the ten specified by the employees
made answer to my inquiries. I have
satisfied myself as TO the correctness Of
the figures given me by tine mills, and
from these returns and other sources
find the following facts. using as a
basis of computation cotton CLOTH 2S in
chcs wide 64x64 pick:
THE average price for middlng up
lands cotton per pound from Jan. 20,
1905 to April 1, 1905.
'Thc average selling price for cloth
per yard between Jan. 20, 1905 and April
i. 1905.
The average running expenses. exclu-
sive OF cotton per week. less an avera ge
amount received each week for waste
and by products. The capitalization of
the various mills.
Allowing per cent. for annual divi-
dends and per cent. for annual depre-
ciation, find that it will require a mar
gin of "A and 3S-1OOths cents between
the price of 40 yards of cloth and eight
pounds of cotton to pay dividend Of |
, per cent. on the wages earned during |
the time specified.
1T Is claimed by the employees that |
IN submitting my conclusions. should |
take into consideration the fact that |
the mills have not been running full |
hurlhg the time specified and have |
otherwise been prevented. on account Of |
the previous strike. from making as
good a showing as they otherwise
would. 1t is undoubtedly true that the /
showing made by the mills during the
time specified is for the reasons claim
ed by the men less than it would have
been, under ordinary circumstances, but
90 not see that under my agreement
With both parties. am allowed to con-