The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-12-13
TIME NOW RIPE FOR A COTTON
MILL TRUST"

1he cotton mills OF the Carolinas
have been experiencing hard tunes 1of
the past few years. Some OF thehi
have lost money and very few have
been able to earn dividends. The out
look has not been bright.
The requirement by the Dukes II
their associates OF most of the water
powers in this state and South caro-
lima, the purchase by them OF street.
car and lighting plants, their purchase
of the Odell Cotton Mills, and the ex-
tension Of their WI cotton mills has
p~resaged the organization Of a cotton
mill trust on Xix lines as the otganlza-
ton of the Tobacco trust that has made
Midas "a pauper' in comparison. ana
hat has enable them to pay the
farmer only SO much re they pleased
for his tobacco, and to destroy COM
petition In the manufacture OF the
weed. The news now that the
Dukes, having control Of the water
powers and of millions OF money, are
telling the Southern mill men that the
only hope for better conditions Is by
entering into a combination. Inc
Charlotte Observer outlines the new
plan of Mr.. J. &. Duke AS follows:
This proposition Of Mr.. Duke m
anated from New York, In the form
of a special dispatch to a nunlber Of
Southern dailieS. The scheme, in a
word, is to establish depotS in China,
something after the fashion Of the
American Tobacco Company. with its
tobacco depots, where experts will be
p ~ 81 r1 Vry1~~~ 49, will
be stored n disposed OF to the mer-
chants Of the Orient. In his way,
complete and accurate information
Will be available as TO the nature of
goods desired, the quality, quantity
and price: n the heretofore yexa-
tious problems concernig settlements
and collections will be greatly mini
mixed, if pAt altogether obyiated. Mr..
Duke to put his own mills
into the combination and TO invite
other mills to do likewise,
the basis OF settlement being 10 per
cent Tor depreciation and 5 per cent.
or maybe 10 per cent. for dividends.
The entire output OF the mills will be
no question AS to marketing.
Great Merger Contemplated.
CAS- to the scheme, a number OF
Charlotte mill men have been APP
preached, ana all appear 70 be very
much Impressed with il. That Mr.
Duke has in mind the practical
merger Of all the mills engaged in the
export trade is anticipated with doubt
less the ultimate EXPANSION Of the Dlau
SO as TO include the whole textile in.
dustry. This scheme Of Mr.. Dukes is
no new thing, for ii common report is
to be accepted as true. he sought I,
achieve 1t in part years ago. making
the tentative offer to q North Caro-
ma manufactures TO take charge OF
the combination when effected. For
various and Sundry reasons, the pla
never got beyond its inception, due
primarily to the great profits the mills
individually were realizing, which
made them loath so enter into any
sort of combination.
Just now, however. the conditions
are more favorable to the scheme
The mills for the past four years have
been living from hand to mouth
struggling most OF the time for exist
ence. SO much SO that not only had
profits dWindled. but even in many
cases the capital stock Of the diffcran,
corporations has been impaired, anC
have been in charge of the mills know
how hard the times have been. with
plants closed down several DAYS IL
each week, help out OF work, goods
piling uE in the warehouse. few sales
and those on narrow margins o.
DIOliIS, Inter est accounts dCc1Tluiat1n y
and the future offering little in the
way OF encouragement. And. witt
those mills having stockholders II, tn.
North not affiliated with the cotton.
goods trace. and ignorant Of condf.
tions, the situation in many cases ha.
been decidedly embarrassing.
The Time Ripe.
at is al this time ana with eDndi
tons as they are that Mr.. Duke ma,
come Forward with his plan. which
reflects something of Mr.. Duke won
dertul initiative and capacity for or
eanizatiOn. Mr.. Duke offers to ALLOW
the mills entering the combination 1
per cent for depreciation and 5 pc
: cent or 10 per cent for dividends
C~otton-nlill men know. as does ais,
MIR. Duke, that 5 per cent will cove
al depreciation. and if 10 per cent i
} allowed for dividends this will give /
, per cent for proflts-a decidedly hand
{ some showing. particularly where al