The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-07-17
AID .sr.usly soslkh for the flnished

nNl pfcnts have been made by Japa-
nese mills, and English mills and the
cotton mills of New England. 1t Is
quite probable that no single industry
In the worlds history ever yielded over
AZ period of two or three years such
phenomenal profits as have come to
the cotton mills of the world, unless
II be. perchance. the profit made by
Carnegie and his associates when they
sold FOR more than $500, 900, 900 a
property which about year before
they had been unable to sell at $780,
100000. Henry c. Frick held an OPP
tion on the Carnegie iron and steel
interests at s1oO, 200. 900. but he could
not finance the sale of the property at
that price. Shortly after his option
iapsed there came a tremendous spec
ulative boom, and during that period,
and partly by reason of Carnegie's
threat TO build big competing mill
and railroad in competition with en-
isting roads, the financial interests of
New York paid him and his associates
over S500,000.000. That profit was
commensurate with the profits that
have been made in recent years by the
cotton mills of the country. But it was
an unholy profit. just as the profits
made by the cotton mills have been
unholy profits. They have been entir-
ely too great. Notwithstanding the con-
diuons which have brought about this
increase in the value of these proper
ties.
The stockholders of these mills Of
course. are greatly rejoicing, but are
they taking into consideration the fact
that these profits were made on raw
material which did not yield q fair
profit to the grower? English cotton
mills are making such phenomenal
profits that. as 1t was after the Ma
poleonic wars. SO II will be this time,
that England's cotton interests will
largely help TO pay eff the Englislt
debt and strengthen the financial pow
er OF that country. 1t was said by
Mccullough many years ago that 1t
was England's cotton trade which en-
abled II TO stand the strain of the cost
OF the Napoleonic wars, but i'm those
days we do not believe that England's
cotton trade ever yielded such abnor-
mai profits rs they are now making.
Profits such as these have an unfor-
tunate but inevitable effect In stirring
up spirit of di<content and a belief
that busines intrests are to a large ex-
tent profteering. In part. this is true,
though not to the extent that the
public has believed. 1t Is. however.
true as regards the cotton mill inter-
ests ofthe whole world.
The amazing prosperity OF English
cotton mills Is shown In 6 Manchester
letter to tho Memphis Commercial APP
peal. i'm which II Is said , ~
In All earlier article was Der.
mitted to explain to the readers of the
commercial-Appeal how and why tho
Lancashire. cotton industry is anxious
" exercised about the future of the
supply of raw cotton. But let no one
for this reason that IAnca-
shire Is moping or despondent On the
contrary, Ii is wreathed In smiles. The
scarcity OF raw cotton is, after all, but
cloud on the horizon while overhead
the sun shines merrily and Lancashire
makes hay. The cotton industry has
been and still is making profits SO
handsome that Lord Emmott, one Of
The leaders of the industry. describes
them as dangerously high
Mills and mill shares have risen so
enormously in value and are changing
hands at such abnormal figures that
many folks are shaking their headv
and asking what the owners of mills
nad shares will do when the inevitable
slump comes and prices fall and divi-
lends dwindle ito what they, were be-
FORE the war and less. But at the mo-
ment no one is disposed to listen.
In period of some 80 years be.
'ore the war the great majority of cot
lon- mills paid an average dividend Of
'nly some per cent. Last year II is
sstimated that tho profits OF the Lam
'ashire companies as a whole amount
sd to so per cent on the share capital.
Nm analysis shows that 1SO companies
which published their dividends dis
ributed an average Of 1878 per cent.
md other companies, which don't pub
ish figures. distributed still more.
some extraordinary figures have re-
emily been announced. The Bell Mill
20. OF Oldham six months ago paid
lividend of 200 per cent. 1t has now
declared a half-yearly dividcnd
,onus which together are at the rate
'f over 500 per cent. per annum. Still
more remarkable IL the announcement
II Times Mill Co., Middleton. whose
pound shares have only10 shillings
'aid up. It's dividend is 20 shillings per
share for the past thre months, which
$ equivalent TO 500 per cent. per year
)n paid up capital. Actual dividend
paid for the whole year has been $50
Der cent. Other instances are the
Eagle Company. which has paid 400
per cent. for the last quarter and the
Palm Company OF oldham which has
lust paid Ice per cent. for the last half
year and 10 per cent. for the whole
u months. No wonder that some OF
he Lancashire shareholders are con-
tent. all too content. to live for today
lay to let the morrow take care OF
tself." ..