The Birmingham age-herald., 1913-05-21
Depreciation of Hundred
Million in Stocks in the
Past Four Years
MAKING EFFORTS TO
MEET NEW TARIFF
Claim is Made That New England
May Make Lower Grades of Cloth
Now Confined TO Southern
Mills
BY HOLLAND

BY HOLLAND
New York, May 20.-(Special.)- the
accuracy of the statement recently COM
piled which shows that stocks represents
resenting New England cotton rnanufac-
turing corporations nave decreased in
market value something over s1oO. 0oo 900
in the past three and half years there
can be no doubt. The statistics upon
which these estimates are based are mat
ters of record. But the presumption occa
stoned by the publication of these rg-
ures at this time that the depreciation is
due to the tariff agitation is only in part
correct
The situation in New England is re
sarded as menacing New England pros
perity There canno. be constant depre-
citation of this kind without ultimately
bringing disaster to New England and.
through the reaction, to many parts Of
the country
1t has been possible to obtain from very
high authority today some explanation of
this condition in New England and some
forecast of future conditions. A part of
this steady depreciation in the stocks OF
New England cotton manufacturing cor
porations is easily attributable to very
large falling off in the demand for the
commodities produced by many of the
New England mills. This decreased de-
mand is traceable directly to the modern
fashions which rule so imperatively the
market for some kinds of textile goods.
The figures show that there has been a
falling off in the demand for cotton goods
of the kind utilized by women for apparel
of anywhere from one-third to one-half.
At present there are no indications that
the old demand caused by change in the
fashions Will be renewed in. the near fn-
ture.
The cotton manufacture in New Eng
land after a while discovered that they
could buy cotton goods of this kind manu-
factured elsewhere cheaper than tleF
could make them.
Just as this precarious condition began
to be severely felt by New England null
manufa cturers there came agitation for
radical downward changes in the tariff In
some kinds of cotton goods. This inevi-
tably tended still further to depreciate the
market value of cotton mills corporation
stocks.
Who Holds the Stock
This depreciation cannot be justly the
basis of criticism for the mill owners.
| They are the persons who have most Sc
verely felt the depreciation. Wages have
not been cut nor has there been to any
extent a reduction in time of the opera
| tion of the mills. Cotton mill corporation
stock is peculiar in the sense that il is
almost exclusively held by estates, ~
families and by citizens of moderate
means. Very little of this stock is ever
thrown upon the market. The quota
ss mad II
the enforced sale of stock held by estates
by order of the courts. Therefore there
can be no manipulation of stock, nor, i'll
fact, has that charge ever been made.
The depreciation, therefore, represents
fair estimate of the present values of
these stocks compared with the value IN
1909 and earlier. The s10O, 100000 loss has
fallen exclusively upon the owners Of
these stocks
This is the condition which has justified
the management of enc of the greatest
cotton mills of Fall River completely to
shut down. Shutting down means that
stockholders as well as employees are TO
be subject to loss. The great print works
at Fall River are still running. 1t seems
to be now the opinion of the abler execu-
tive managements of the New England
and some of the New York cotton mills,
as well as one or TWO in the south, that
the situation can best be met by contin-
uing the operation OF the mills at full II ne
and without any attempt to cut wages.
Then If, at last, 1t is discovered that tais
method is cutting very deeply and Is per-
manently threatening the capital which
is invested in these mills they will be
shut down completely. Furthermore. 1t
seems now to be the opinion oe these men
although it will not lead to any formll
agreement among thom-that it is not en-
pedient for the owners of these cotto n
uiC
against the tariff schedule to those ~no
have the Underwood bill in charge. This
feeling is due to nc impression, frs,
that protests will be unheeded and, sec
ond, to the fear that the manufacturers
will be liable to the charge made by those
who have the tariff measure in hand of
acting not In sincerity. and therefore not
being justified In making protests.
1t may be that after time. and before
the manufacturers feel compelled to shut
down completely and possibly to make
other investments of their capital, a
change will come, anS the market values
of these stocks will at last be so greatly
appreciated that the s1O0,00o000 lost upon
the market value OF these stocks since
1909 will be regaincd. But If a sincere and
thorough test shows that this recovery
cannot be gained then most appalling
industrial condition is likely to be deye'-
oped in New England If it is developed
it cannot fail more or less harmfuly to
affect other interests.
A Possible Change
Already some Of the New England cot
ton manufacturers are beginning to Won
der whether they may not be compelled
to change the quality and style of their
commodities. The low grade cotton mills
of the south are presumably fairly we'll
protected by the rltes written into the
Underwood bill it may be that some Of
the New England mills and some of the
great cotton mills of New York state will
find 1t worth while to take advantage Of
this low grade cotton schedule and be-.
gin the manufacture or that kind OF cot
ton cloth. If they do, they will bring
their mills into competition with many
of the southern cotton mills. This will
| upset what has been regarded as
happy phase of cotton manufacture in the
United States distinguished by the man
ufacture of low grade cotton cloth in he
south, while the New England mills We're
occupied chiefly with the manufacture f
high grade cloth.
The Present Condition
| AT present it is the shareholders in the
New England and New York state coltcn
mills who are meeting with losses. partly