The herald and news. [volume] (Newberry S.C.) 1903-1937, 1909-10-22
THE PRICE OF COTTON AND
THE MILLS.

The Augusta Herald had an edi-
torial on this subject the other day
from which we quote. The Herald
speaks of the claim Of the mills that
it does not pay to manufacture cot
ton at the present prices and there
fore it would be necessary to curtail
production in order TO get the price
Of cotton down or to advance the
price Of cotton goods. It is now
claimed that the purpose Of the mills
is to bull the cloth market rather
than bear the cotton market. The
Herald says:
''The reason assigned by the mills
for such a course is the claim that it
doesn't pay to manufacture goods at
the present price Of cotton and cot
ton goods. A more unwarranted
claim was never set up. The cotton
mills are making big money-all Of
them that are properly managed.
Official figures show, for instance,
that the Amoskeag Mills of Massa-
chusetts, on a capital Of S5,760,0O0,
have set aside a surplus Of $4,139,939,
while paying average yearly divi-
dends Of 1915 per cent, which were
increased in 1907 to l6 per cent. The
Dwight Mills on a capitalization of
$l,200,000 accumulated a surplus of
81, 1888, while paying annual div
idends averaging 1880 per cent. in
creased in 1907 to 80 per cent. The
Pacific Mills, on a capital Of $3,000,-
600 accumulated surplus Of $685.
281, while paying average dividends
of-15.50 per cent. increased in 1907
to 80 per cent. The same, with va
ration according to the skill Of the
arrangements, applies to all cotton
mills. It is false, then, to claim
that the mills cannot be successfully
operated with cotton a few cents
higher, when nothing is more GER
tain than that cotton goods will be
correspondingly advanced in price.
The truth of the business is that the
manufacturers are only trying to
beat down the price Of cotton to in
crease their profits.
"But the plan will not succeed. In
the first place it is only-in large
part at least-a bluff. When cot
ton mill is closed, for the time being
it is not only unproductive but it
actually loses money. Why should
mill lose money by standing idle,
when it could be operated and make
profits? The manufacturers didn't
mean what they said, and even if
some Of them did, not all Of them
will pursue such an unwise course.
The world needs the cotton goods to
be made out Of the cotton grown this
year, and the mills will spin it. No
doubt about that. It will require
every bale grown this year to supply
the demand and al that the supply
will be insufficient This assures the
price remaining high.
"Should some Of our American mills
refrain from buying cottonit may
happen to them as it did once before.
when the. European mills were lay
ing in their supply Of cotton while
American mills were boycotting to
bear the price And when finally
they were compelled to buy cotton
the price advanced, and they were
forced to compete with European
mills who had wisely bought at the
market price which was, as always,
lowest in the earlier part Of the sea-
son.
'Cotton will advance in price as
certainly as an 100000 bale crop
cannot supply a 100000 bale de-
mand. What the American Cotton
Manufacturers Association may do
will not affect the price. Some mills
will be unable 10 run the entire sea-
son because there will not be enough
cotton to run all the mills through