The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-08-14
COTTON PROFITS roo Big.

The directors OF the Inman Cotton
Nils, Spartanburg County. South
Carolina, have recommended a stock
dividend of 400 per cent, 300 per cent
to be in common stock and 100 per
cent preferred stock. and the stock
holders have been called to ratify the
action of the directors.
OF this the Manufacturers Record
says: STOCK dividends of from 200 to
300 per cent have been entirely too
frequent. No legitimate business is en-
titled to make such profits. Some
where there is injustice to the public.
We know that the reply OF the cotton
mill people is that the shortage Of cot
ton goods throughout the world is go
great that American mills are merely
following the lead of English and New
England mills. 1t is true, too, that
English mill stocks have been selling
on basis at from three to ten times
the paid-in capitalization, but one
large mill owner in England recently
expressed himself as ashamed of the
profits of his company. The cotton
producers have been paid a pittance
for their staple as compared with cot
ton goods, and the consumers of cot
ton throughout the whole world have
paid entirely too high price for the
finished product.
This condition does not, however,
apply to Southern mills only. Phe-
nomenal profits have been made by
Japanese mills. and English mills and
the cotton mills of New England. II
is quite probable that no single in
dustry in the worlds history ever
yielded over a period OF two or three
years such phenomenal profits as have
come to the cotton mills of the world.
unless it be. perchance, the profit made
by Carnegie and his associates when
they sold for more than S500,000,000
property which about year before
they had been unable to sell at $780,
900 900. Henry C. Frick held an option
on the Carnegie iron and steel inter-
ests at $100,000,000, but he could not
finance the sale of the property at that
price. Shortly after his option lapsed
there came speculative boom. and
during that period, and partly by rea-
son of Carnegie's threat to build a
big competing mill and a railroad in
with existing roads. the |
financial interests of New York paid |
him and his associates over 100000.
600. 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 entirely too great,
the conditions which
have brought about this increase in
the value of these properties.
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
which did not yield a fair
profit to the grower? English cotton
mills are making such phenomenal
profits that, as it was after the Nj
ooleonic wars. SO It will be this time,
hat England's cotton interests will
argely help to pay off the English
iebt and strengthen the financial pow
n of that country. 1t was said by Nc
cullough many years ago that it was
highlands cotton trade which enabled ii
o stand the strain of the cost of the
Japoleonic wars, but in those days we
10 not believe that England's cotton
rade ever yielded such abnormal
,rofits as they are now making.
Profits such as these have an I'M
but inevitable effect in stir
ing up spirit of discomfort and a
elief that business interests are to
arge extent profiteering. In part. that
) true. though not to the extent that
he public has believed. 1t is, how
yer, true as regards the cotton mill
1terests of the whole world"