Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-22


this new industrial diversification. One
! of the most promising is the fact that 1t
has been built up to no little extent
through owner management~-the execu-
tives In immediate charge of the plants
are in large part the actual owners. In
other words, the South is much less
burdened with the dead hand Of absen-
tee ownership than Is the case with
many older industrial sections OF the
country. This has made for an alert adj
Instability of PRODUCTION and Market
ing policies, which has been particularly
important during the worldwide
changes in international commerce
since 1914 The buving power of whole
nations has been completely remade in
those years. New demands have come
into being and with them the means of
gratifying them through the stimulation
OF new industries to meet war require
nlentS and to cope with enforced war
time isolation during the period of
shortage OF shipping,
Executives Are Young.
The young executives of the Southern
factories-and no observer can make a
tour OF any considerable number of fac
tories below the Mason and Dixon Line
without being impressed with the ener-
eetic youthfulneSs of their managers
and directors -are constantly on the
lookout for new openings and init
matelv in touch with changes In re-
quirementS and possibilities for their
products.
The resourcefulness is invaluable in
these days Of spectacular and sudden
changes in trade requirements. The
enormous improvement in means Of
communication throughout the world,
If tvo Ia = t. %a1r
ony and OF radio service everywhere.
OF much more rapid and efficient Dig
sel-rnotored shipping: of commercial
aviation on an undreamed-of scale, of
immensely improved automotive traffic
Tor freight as well as passenger pur-
poses and of electrified rail service
all OF these new contributions to trans
portation and communication have
vastly complicated the problems of mer-
chandizing. They transmit the i'm
pulses and reactions from world wide
events, so that the effects of the latter
are promptly evident in business circles
thousands Of miles away
This new situation gives an impress
sive advantage to the younger and more
watchful industrial organization, and in
that respect the South enjoys q decided
advantage over the operations of the
older, more settled parts of our indus
trial and commercial structure Ex-
perience may be the best teacher in
some respects. but too rigid a devotion
| TO the traditions and precedents OF the
/ past is certainly serious disadvantage
in these days of kaleidoscope trade
! changes.
By way of concrete illustration Of
/ this situation two instances may BE-
cited. The postwar housing activities
! In the United Kingdom created an ex-
[ traordinary demand for new types Of
woodwork. This was appreciated and
promptly capitalized by certain South
/ ern producers considerably In advance
| OF their Older and presumably more ex-
| perienced competitors in different parts
OF northern Europe and this country
The result has been the development
OF certain types OF new flooring, pro-
cessed wood, ETC.. by Southern mills. In
which a substantial trade has nov been
built up. Similarly the same industry
has undertaken the exploitation Of the
trade in various lines Of hardwood
| sporting gear 70 satisfy the new trade
that has been stimulated by the aston
| .shing increase In tourist trafiic since
the war. A large portion of the skis
now used at the Winter resorts In
Switzerland originate In Memphis and
other Southern centers.
New Textile Industry.
The new textile industry OF the
South, which marshals 900 mills, with
half the total spindles OF the country.
and includes $50, 100000 worth OF rayon
plants. is another example OF the new
er industrial and commercial spirit
which has made the South a conspicu-
Gus element In international commerce.
Here again the aggressive leadership OF
the interested executives has had quite
as much TO do with the advancement
OF the industry as the accessibility OF
raw material or the more moderate
wage scale and tax rates
Instead Of specializing on fabrics for
| wearing apparel during a period when
style changes make such a policy high
ly precarious, the bulk-at least rs per
cent~-of the Southern plants are pro-
cucing textiles for industrial uses Exec
utives have been watchful of the sue
cesslve new demands incident TO the
/. growth Of industries In other parts OF
! the world and are capitaiizing these
! new markets TO the full. Soma Of them
/ have even succeeded to the extent OF
| shipping certain types OF duck fabrics
"a speciality Of some Southern mills
/ 70 Manchester. England. In considerable
quantities. which is certainly carrying
CSdlS 10 EeVCdSt!e.
These facts explain the rapidly grow
/ ing stake which the new South has in
our foreign trade in fabricated wares. a
group which accounted for some 90 per
cent OF the exports OF the Nation as a
whole II, 1927 as compared with 30 per
cent some 20 years ago, Today our
trade In wholly and partly manufac-
tnred goods IL valued al about 81 600. .
100000. In which the South has not
only substantial share, but one that
Ii Increasing more rapidly than that Of
any other part OF the Nation.
Increased Overseas Business.
THIS is commerce which IL entirely
/ ciHereni from our old pfewar trade In
, the medieval" years before 1914 our
commerce war made up either OF self
selling staples requiring no particular
sales effort abroad or vi a very few pat
eDt%d specialties produced by large
companies. In fact. II has been stated
mat 80 per cent III our manufactured
exports IN those days came from some
Is or 20 concerns Today our over.
seas fafilc in manufactured lines is
butt up largely by contributions from
THOUSANDS vi small manufacturers who
have learned that there Ia no deep AZ :
cret In successful exporting which cam
not be- shared by small firms.
These are the factors that explain
the impressive increases In export ton >
| mage moving out Of Southern Dorts
which handled nearly half Of the total
Ut the United States. even counting the
I international Great lakes trade last
year. The increase In the ports south
VI Baltimore Was from $4,000 900 u
81, 400, 900 tons 0f export tonnage, on
about ~ per cent, from 1923 IN 1925
II liz true that the abn0rmaily high fig
ufe u the later year Is accountable In
part because u the heavy coal ship
, nseBt6 from Baltimore and Hampton
itoads during the British coal strike
but even II We exclude these ports the
increase IN that period Of years was ~
per cent.
All ~ this ,aesus vastly isuurcysd