The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-05-23
ABSENTEE FINANCIAL CONTROL AND
SOCIAL WELFARE

TOR this period of intensive research in industrial
chemistry, the question raised in the Nation
al Research Projects that studied the rise and fa
of the Amoskeag Mill at Manchester has an i'm
mediate concern: "What is an appropriate basis
for decision to lquidate an enterprise whose en-
ployment or unemployment largely controls the
prosperity of city,"
The Amoskeag Company located their mills I'M
Manchester to utilize the Water-pOWer of Amos
keag Falls in 1881. For decades these mills made
Manchester in America the counterpart OF Man
chester of England. The company obtained ex-
elusive control of the water-power of the Merrlmac
river for it's locality and controlled large land hold
ings which drew it into real estate pronlotlon The
growth of Manchester to town of 10000 was di-
rectly related to the operation OF the mills. The
mills themselves were not owned by local persons
: Control over it's stock owned by merchants
and financiers of Boston. The treasurer of the
Board of Directors, who was their active represen-
tative, had his office in Boston. Responsibility
for production was delegated to an agent-a sala-
! ried official who lived in Manchester and was dl-
rectly responsible to the Director. The mill was
handicapped by remote cont and absentee
, ownership The profits from production went to
the absentee owners whose concern for Manches-
ter related only to their income. The directors
diverted to themselves the profits from wartime
high prices and put through financial reorganiza-
tons that drained away all revenues by increasing
obligations to pay to security owners. Then faced
, with competition from cotton production in the
low-wage mills of the South together with freight
2 rates OF raw materials ana Jne depression DeSlH-
ming in 1929 after manufacturing life of lO7
years. the company applied for liquidation order
which granted by the court and put into effect
without inquiry concern as to it's effect on the
" town of Manchester on the more than 1900
workers attached to it's payroll. =,
The community organized Amoskeag Industries,
Inc, to salvage the mill properties to preserve the
economic basis OF the community The workers
who had all their roots in the community, waited
for the mill to reopen, encouraged by rumors and
proposals. They agreed to wage reduction.
Twenty-Five months after the shutdown, three
fifth of the men and four-fifth of the women for
merly working in the mill had had no work in pri-
vate industry in that interval. Of the men who
found employment, one-fourth found work within
a month"; one-third within six months, while Ia
per cent were unemployed for year. Those with
out work had to turn to relief.
Whether Manchester can withstand this blow at
her economic vitals we do not yet know, but we do
know that by weighing the consequences of liqui-
dation in terms of public welfare different proce-
dures can be developed. We also know that finan-
cia reorganiaztions at the expense of the produc
ton project and workers. is certain road to waste
and ruin, and that Boards of Directors must be
held responsible for the social consequences of
their decisions