Cotton Mills Will Go Broke If Don't Cut Production, Sept. 14, 1926

Says Radical Remedial Action is Necessary. . . President of Yarn Spinners’ Association Says Drastic Action Alone Will Save Mills

Yarn spinners here will be interested in the following from Sunday’s Charlotte News relative to a statement made Saturday by A. M. Fairley, president of Southern Yarn Spinners’ Association, with headquarters in Charlotte:

Only radical remedial action can save many plants in the cotton manufacturing industry from “the sheriff,” declared A. M. Fairley of Laurinburg, president of the Southern Yarn Spinners’ Association, in a statement made public here Saturday at the association’s offices. Mr. Fairley substantially expressed the opinion that the recently-organized Cotton-Textile Institute offers the industry its chief basis for a solution of its difficulties and urged the members of the spinners’ association to join that organization.

Mr. Fairley’s statement pointed to what was represented as a peculiar economic situation involving the textile manufacturing industry. “There are no stocks of any moment on hand at the mills, or in the possession of dealers, and, in spite of consumption being equal to or greater than demand, there has been no profit to the mills,” said the president of the spinners’ association. Tabulated reports form the State Revenue Commission of North Carolina were cited to indicate that the mills have not yet recovered from the depression of recent years and show that but very few are making any money.

Mr. Fairley announced his official endorsement and approval of the Cotton-Textile Institute, designed to further co-operative and profitable operation of the cotton industry in the South.

Thus far, over 19 million spindles have been enrolled in the Institute, and it is expected that before October 1st more than 20 million spindles will be listed in the organization.

In his letter to cotton spinners, Mr. Fairley pointed to the failure in the past several years of most of the manufacturers and spinners to secure “a new dollar for an old one,” much less to make any degree of deserved profit. Mr. Fairley stated that a lack of proper distribution and unsatisfactory selling methods have been partially responsible for the signal failure of the cotton milling industry. He added that the chief trouble has been with the manufacturer himself, “because of his proneness to overproduce.”

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From page 2 of the Concord Daily Tribune, Sept. 14, 1926

newspapers.digitalnc.org/lccn/sn92073201/1926-09-14/ed-1/seq-2/