Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1913-10-01
DULL BUSINESS
Continued from Page One.)

ports, the hesitation is due largely to
such changes.
Frankly. the best informed manu-
lecturers do not feel that they know
just what the effect will be. Natur-
ally, they look with alarm on any
such radical change as is being made
but possibly the high efficiency OF
our mills and the comparative prox-
unity of the markets may enable us
TO compete successfully with the for
eigner, but in any event it is certain
that competition from abroad will be
much keener and very serious fac
tor with which to reckon.
IF in spite Of this competition we
are able to operate successfully. and
by that | mean continue to pay fair
wages and earn reasonable return
on the capital invested and do so
over period of years, we cannot
complain What | fear most is thai
the worst win not come al once The
mills of Europe are as a whole fairly
wen employed, particularly in Eng
and on cotton goods, and it may be
true that the American mills can
continue to do business at a moder-
ate profit in spite of increased i'm
rOrtations. but when the business is
depressed abroad and the adj vaIorem
tariff viii fail to give the same pro-
lection as with high prices at the
very time when the American mills
need protection most.
we are, however, an optimistic
people and we should enter on the
new era as cheerfuny as can be.
having full confidence that if in
spite of our best efforts the new
tariff proves an undue burden. the
government in Washington will see
its mistake and make reasonable
changes.
I think it is 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 capital, doubles the cost of
repairs. insurance. depreciation. etc
This is due almost entirely to the
high wages paid in this country. par
ticularly to skilled Iaborers 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. re-
ceiVed by every American IabOrer
which enter into our problem.
The overhead expense Of American
mills is necessarily high. This is
due in part to the fact that this is
4 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.
Il had occasion not long ago to
compare the expense of the execu-
tive office, or treasurer's office. of
several New England mills. including
the salaries of the officers, and I
found that such expenses averaged
about one-half Of one per cent of the
net sales. Moreover. those of us who
are familiar with the conditions of
the country know that the selling
expense is very moderate as com
pared with the cost of selling other
articles. The expense to a mill of
selling its production is very mOder-
ate. Many grey goods mills sell their
production 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
Of US who have been in the business
ditiOns to contend with. l see no
reason why the efficiency engineer