Evening star., 1905-08-20
LONDON
CRISIS IN COTTON
INDUSTRY ABROAD
Special Cablegram TO The Star.

LONDON, august 1O.-Tne cotton lnouS-
try appears to be going through a sort OF
crisis in more ways than one. Not only Is
the trouble between the members OF the
Liverpool Cotton Exchange and some OF
the cotton brokers OF America because OF
the decision to raise the price charged as
sociate members in America about 1.0OO
per cent. but boycott Of American raw
cotton for the next three months has been
suggested by the cotton spinners from all
European countries. After the meeting OF
the executive committee of the Master Cot
ton Spinners and Manufacturers AssocIa-
ton. at which delegates were in attendance
from Austria. Belgium, England. France.
Italy. Germany. Switzerland Spain and
Portugal. 1t was decided to issue mani
festo to every cotton spinner in Europe and
America. The emergency meeting Of the
International committee was called by tele-
graph for the purpose of considering what
common action should be taken to counter
act the pernicious effect on the trade
brought about by the late enormous en-
hancement of the prices of the new mate
rial due to the action of speculating rings.
The deliberations lasted nearly six hours
1t Is probably many years since specula-
ton has taken hold of the general public
as strongly as has the present excitement
over cotton. In Manchester. Liverpool and
many of the cotton centers, where the Sc
crets of the trade and stories regarding the
profit to be made are familiar to the gem
eral populace. clerks. school teachers and
even servant girls have caught the specu-
lating fever. In many instances the tap
ping of tiils, as in the case of horse racing,
has been traced directly home to the fever
caused by this betting on cotton. Many
failures, especially among smaller business
men. have occurred In western England.
caused by these cotton speculations Nat
urally the cotton brokers themselves have
not "gone to the WALL because most of
these men buy and sell on commission. and
consequently are not involved in the fuctu-
ations OF the cotton market. In fact, the
fever speculation has had a tendency to
make matters in the trade lively. and has
been of great benefit to the average cotton
broker. 1t has been the outsiders who
have suffered.
In the circular of the Master Cotton
Spinners and Manufacturers Association
just sent out by the executive committee
the following paragraphs appear:
1.-The committee were unanimously of the
opinion that the first object to be aimed at
was to secure accurate statistics as to the
amount of cotton at present under the con-
troll of spinners and the extent of the en-
gagement into which they had entered for
delivery Information of this character Is
necessary. the speculationS which are
bic on account of the circulation of grossly
exaggera ted and misleading figures in this
respect. probably traceable to the speculat
ing element itself.
given by the members of the committee as
to the conditions prevailing in the coun-
tries represented 1t appeared that, though
actual statistics were not available. the En-
ropean cotton spinning industry is at pres
ent engaged on the average for period of
three or four months ahead, anu hold am
pie cotton supplies to more than cover
these engagements.
% 1.-The committee therefore Is convinced
that with few exceptions spinners do not
need to enter the cotton market before the
new crop arrives at the end of October. but
that they are in position to stand aside.
leaving the spectators to deal as best they
can with the conditions to which they have
reduced the market.
''The committee strongly urges every cot
ton spinner in Europe and America to re-
frain from buying American cotton during
the next two months. except for immediate
wants. and thus to try to obviate the dan
ger Of the next cotton season commencing
with the raw material at the extremely
high price prevailing. There will be plenty
Of time when actual figures are available
about the extent Of the new crop to con-
slider the situation that will then arise, and
should the supply prove to be less than
the demand to take such steps as are necs-
prevail.
"At the same time. the committee feels
sure that the surplus of last years crop
will guarantee full supply, even in the
event of the next crop being small.
THE committee also decided to organize
at once service of correct Information as
to the actual consumption of cotton
throughout the world on the lines proposed
at ha c n Star nd
hopes to have an early opportunity Of COM
municating the details of the scheme"
Meanwhile as if to add to the complica-
ton labor troubles threaten the cotton
trade At Manchester. for instance, the
result of the ballot of the spinners and
the card room and blowing room hands
in the cotton trade on the wage question
has resulted in majorities in favor of ex-
ployers continue their delay In deciding to
grant an advance of per cent. In each
case the ballot was officially declared to
have been overwhelmingly in favor of the
terdering of notices by the operatives. In
the case of the card and blowing-room
hands. it was declared that 945O per cent
of the members voted for the giving in of
notices, and only $50 per cent gave votes
in opposition or remained neutral The
officials of the amalgamated spinners have
repeatedly declined to give actual figures.
but reported that instead of the mere four
ffths majority being recorded 1t was an
surrender" The operative spinners were
polled throughout the organization. both In
districts affected, and In those outside the
area in which the strike Is threatened.
Next Monday morning. August q. is the
last date to be allowed the manufacturers
for peaceabIe settlement Of the increase
in the wage proposition. A number of the
mems leaders are confident that II they
adhere to their notices the operatives will
attain their object without strike being
resorted to. Probably neither employers
nor workers were ever better prepared for
a struggle. The Joint funds OF the en-
ployes organizations amount to consider
ably over $2.5O0.OOO, whilst on the other
side 32. 900. coo spindes are involved. with
corresponding financial strength. The num-
Der of the workers affected is about 10000.
prominent employer who occupies an
important official position In the Fedora
tion OF Master Cotton Spinners. when seen
this week, said that his men were being
mislead by the wrong judgment of their
leaders. THE last month or two has wit
messed a great change In the conditions OF
trade" he said. land If the increase Is