Imperial Valley press., 1913-10-02
Tariff and Cotton
Under Discussion

Fafnnam IfSeIle, pfSSluellC Vi IIlc IVA
tional Association of Cotton Manufac-
turers, addressed the convention
which assembled here yesterday. He
said tariff changes alone were not re-
sponsible for the present curtailment
of business and expressed the hope
that, if the new bill proves an undue
burden upon the cotton interests, rea-
sonable changes in it may be made
by the government. President Greene
said, in part:
at is perhaps hardly fair to say
that all of the business hesitation in
the past few months has been due to
the prospect of a change in the
tariff, for the tight money market,
wars and prospective wars abroad and
at home, and the proposed monetary
legislation in this country have con-
tributed much to the curtailment in
business in the way of restricted cred
its and general caution. However, it
is fair to assume that in the textile
business, where a very radical cut Is
to be made in duties on imports, the
hesitation is due largely to such
changes.
! "Frankly, the best informed man
ufacturers do not feel that they know
/ Just what the effect will be. Naturally,
/ they look with alarm on any such rad
ical change as is being made, but pos
sibly the high efficiency of our mills
and the comparative proximity Of the
markets may enable us to compete
successfully with the foreigner, but,
in any event, it is certain that com
petition from abroad will be much
keener and very serious factor with
which to reckon.
"If in spite of this competition we
are able to operate successfully, and
/ by that | mean to continue to pay
fair wages and earn reasonable re-
turn on the capital invested and do
so over period of years, we cannot
complain What | fear most is that
/ the worst will not come at once. The
mills of Europe are as a whole fairly
employed, particularly in England, on
cotton goods, and it may be true that
i the American mills can continue to
do business at a moderate profit in
spite of increased importations, but
when the business is depressed abroad
the ad valorem tariff will fail to give
the same protection as with high
prices at the very time when the
| American mills need protection most.
1--WE are, however, an optimistic
people, and we should enter on the
new era as cheerfully as can be, hav
ing full confidence that if in spite of
our best efforts the new tariff proves
an undue burden, the government in
Washington will see it's mistake and
make reasonable changes
81 think it sufficiently clear that
one of the most serious handicapS
with the American mills is the first
cost of cotton or worsted mill as it
is nearly twice what it is abroad.
This neceSsitates twice as much cap
ital, doubtless the cost of repairs, in
surance depreciation, etc. This is due
almost entirely to the high wages paid
in this country, particularly to skilled
laborers, such as carpenters, masons
and mechanics AS can be clearly seen,
it is not only question of actual
wages paid in the mills, but also the
high wages, received by every Amer
lean laborer, which enter into ou"
problem.
"The overhead expense of American
mills is necessarily high. This is due
4 in part to the fact that this is a large
country, and that mills are located at
some distance from the market where
the goods are sold, or in which the
raw material is bought.
"The higher cost of living in this
country means higher salaries of
Clerks and officers and yet the rela-
tive expense is very moderate.
II had occasion not long ago to
compare the expense of the executive
Office, or treasurer's office, of several
New England mills, including the sal
aries of the officers, and | found that
such expenses averaged about one
half of one per cent of the net sales.
Moreover, those of US who are ia
miliar with the conditions of the
country know that the selling eX-
perse is very moderate as compared
v,ith the cost of selling other ar
ticles. The expense to mill of sell
ing its productions is very moderate.
Many gray goods mills sell their pro
duction /at total cost of less than
two per cent on the sales.
"Any observant outsider can in a
casual visit to our mills see ways of
economizing, as they think, but those