9870 I-- International Congress OF THE PROCEEDINGS OF THE OF DELEGATED REPRESENTATIVES OF MASTER COTTON SPINNERS' AND MANUFACTURERS' ASSOCIATIONS ToNMALLE, Zurich, MAY 23 to 27, 1904. Issued under the DiREcnoN of the i^i : 'Nal Committee APrOINTED BV THE CoNGRKbS. MANCHESTER : MARSDEN AND CO., LTD., PRI.N'TERS, CARR STREET, bl. V*- OFFICIAL REPORT OF THE PROCEEDINGS OF THE FIRST INTERNATIONAL CONGRESS Since this Report went to Press the Committee has received, with deep regret, the announcement of the death of M. GEORGES MOTTE, President of the French Federation of Cotton Spin- ners, and the representative of France on the International Committee. . '^W^ [Issued under the Direction of the International Committee appointed by the congress.] /• OFFICIAL REPORT OF THE PROCEEDINGS OF THE FIRST INTERNATIONAL CONGRESS OF DELEGATED REPRESENTATIVES OF MASTER COTTON SPINNERS' AND MANUFACTURERS' ASSOCIATIONS HELD AT THE TONHALLE, ZURICH, MAY 23 to 27, 1904. [Issued under the Direction of the International Committee appointed by the congress.] Preface INDEX PAOB International Committee 5 List of Representatives 6 Opening Meeting ... 9 Second Day's Proceedings: — Cotton Growing 11 Cotton Corners 41' Third Day's Proceedings: — , Organisation 59 Fourth Day's Proceedings : — Cotton Corners 71 Closing Proceedings... 87 Minutes 89 Resume 103 Brooklands Agreement 106 Programme 10 Mi9G229 PREFACE. The cotton industry of the world has been passing through a crisis the severity of which has been rarely equalled in its history. The state of the cotton trade during 1903 and the beginning of the present year was so serious that it was deemed necessary to take steps for dealing with the situation. At a mass meeting of the British cotton spinning and manufac- turing industry, held in Manchester on December 29, 1903, repre- sentative of both employers and operatives, it was resolved to depute to the Federation of Master Cotton Spinners* Associations the organising of a movement to curtail the consumption of Ameri- can cotton by working 40 hours instead of 55^ hours per week, and to recommend a similar reduction on the part of all cotton-using countries. The success attending this recommendation was such that at a meeting of the members of the English Master Cotton Spinners' Federation, held in Manchester on March 25, 1904, the Executive Committee of that organisation was instructed to take steps for the smnmoning of an International Congress. The Swiss Association of Cotton Spinners and Manufacturers readily consented to act with the English Master Cotton Spinners* Federa- tion as joint conveners of such Congress. The response to the invitation was all that could be desired, and on May 23, 1904, the opening meeting of delegated representatives of cotton spinners' and manufacturers' Associations was held at the Tonhalle, Ziirich^ nine nationalities being represented. A report of the proceedings of the Congress, which were of a most successful character, is presented herewith. July, igo^j.. »» » » y » THE INTERNATIONAL COMMITTEE. C. W. MACARA (England), Prtsident. JOHN SYZ (Switzerland), Vice-President. GEORGES MOTTE (France) ) Hon. FERD. GROSS (Germany) | Treasurers. ARTHUR KUFFLER (Austria). J. DE HEMPTINNE (Belgium). BARON COSTANZO CANTONI (Italy). H. P. TAVEIRA (Portugal). RUDOLPH PROWE (Russia). Secretary: JOHN SMETHURST, Manchester. BuMtors : DAVID SMITH, GARNETT & CO., Chartered Accountants, Manchester. :BankctB : LANCASHIRE & YORKSHIRE BANK LTD., Manchester. Offices: 22, St. Mary's Gate, Manchester. Telegraphic Address: " Invite," Manchester. Nat. Telephone: 4247. FIRST INTERNATIONAL CONGRESS OF DELEGATED REPRESENTATIVES OF Master Cotton Spinners' and Manufacturers* Associations. ZURICH, May 23 to 27, 1904. LIST OF REPRESENTATIVES. Association Cotonniere de Belgique. M. Jean de Hemptinne, President. Associacao Industrial Portugueza. Senhor H. P. Taveira, President. Associazione tra gli Industrial! Cotonieri e Borsa Cotoni. Signor Baron Costanzo Cantoni, Presidente. Signor August© Abegg. Signor P. Piccardo. Bolton Master Cotton Spinners' Association. Mr. J. Charnock. Mr. A. Hill, Secretary. Mr. A. E. Rahr. British Cotton Growing Association. Mr. J. C. Atkins, Secretary. Association Cotonniere Coloniale, Paris. M. A. Esnault-Pelterie, represent^ par M. Casimir Berger. LIST OF REPRESENTATIVES. Colonial-Wirtschaftliches Komitee (Berlin). Herr Wilckens, Sekretar Elsaissisches Industrielles Syndicat. Herr Alfred Bourcart. Herr Daniel Mieg. The Federation of Master Cotton Spinners' Associations. Mr, J. R. Byrom. Mr. J. Smethurst, Secretary. Mr. J. T. Dawson. Mr. J. B. Tattersall. Mr. H. W. Macalister. Mr. J. L. Tattersall. Mr. C. W. Macara, President. Mr. E. Travis. Mr. S. Smethurst, General Manager. Moskauer Bor sen- Komitee. Herr Rudolph Prowe. North and North East Lancashire Cotton Spinners' and Manufacturers' Association. Mr. A. Birtwistle. Mr. H. Higson, President. Mr. F. A. Hargreaves, Secretary. Mr. T. Roberts. Mr. S. Gask (Preston). Mr. J. R. Smith. Mr. J. Taylor, Secretary. Schweizerischer Spinner-, Zwirner- und Weber-Yerein. Herr J. H. Hermann Biihler. Herr A. Stadtmann. Herr August Henggeler. Herr John Syz, President. Herr Fritz Jenny. Herr H. Wunderly-de Muralt. Syndicat Frangais de la Filature de Coton et Tissage de Coton. M. G. Badin (Rouen). M. C. Berger (Rouen). M. G. Duvillier-Motte (Tourcoing). M. Joubin (Epinal et region est). M. Mangin (Epinal et region est). M. G. Motte, President (Roubaix). M. Valdenaire (Epinal et region est). M. Vmdrier (Roanne, Thizy et region). M. Arthur Waddington (Rouen). 8 INTERNATIONAL COTTON CONGRESS, Yerband Rheinisch-Westphailischer Baumwolispinner, Herr C. O. Langen, Prasident. Herr Direktor Miiller. Herr Direktor Walter. Yerein der Baumwoll- Spinner Osterreichs. Herr Friedrich Anhegger. Herr Martin Haemmerle. Herr Carl Beckmann. Herr Arthur Kuffler, Vize- Prasident. Herr Julius Gassner. Herr Fritz Waerndorfer. Herr Hanns Haebler. Herr Direktor Hacker. Yerein der Baumwoll-Weber Osterreichs. Herr Andr6 Gassner. Herr Kommerzialrat Ludwig Stross. Herr Dr. Otto von Bronneck, Sekretar. Yereinigong Sachsischer Spinnerei-Besitzer. Herr Emil Stark, Prasident. Herr L. Steinegger. Yerein Siiddeutscher Baomwoll-Industrieller. Herr Kommerzienrat Ferd. Gross, Prasident. Herr Kommerzienrat H. Semlinger, Vize- Prasident. Herr Generaldirektor Fr. Hummel, Schriftfiihrer. Joint Secretaries of Congress. Herr J. H. Hermann Biihler. Mr. John Smethurst. OFFICIAL REPORT Of the Proceedings of the First International Congress of Delegated Representatives of Master Cotton Spinners* AND Manufacturers' Associations, held at the Tonhalle, Zurich, May 23 to 27, 1904. The opening meeting of the Congress was held at the Tonhalk on Monday, May 23, 1904. Shortly after eleven o'clock Mr. C. W. Macara (England), rising in the body of the hall, said : As the first signatory to the invitation that has been issued to attend this Congress, I wish to express my intense satisfaction at the magnificence of the re- sponse that has been made. I also wish to express my personal gratitude to the President of the Swiss Association, and to the joint secretaries, for their admirable arrange- ments. Now, in accordance with the usage of inter- national congresses, the president of the association in the country in which the congress is held is voted president of the congress; I have therefore the very greatest pleasure in pro- posing that Herr John Syz be president of this first International Cotton Congress. M. Georges Motte (France) heartily seconded the motion, which was adopted unanimously with acclamation. Herr John Syz, the President, then took the chair, and addressed the delegates in German, French, and English. He said: It is a great honour for me, as president of the Swiss Association, to bid you a hearty welcome to Zurich. Those of you who arrived during the last few days have no doubt heard a great deal of satisfaction expressed that the Federation of Mas- ter Cotton Spinners* Associations has had the happy thought of taking the initial steps for calling this first International Congress. We in Switzerland embraced with great pleasure the oppor- tunity of helping in this Congress. We hope the delegates will see the necessity of doing something and doing it soon. We have come together as spinners and manufacturers who have but one 10 INTERNATIONAL COTTON CONGRESS. end in view : to safeguard legitimate trade. With these few re- marks I wish to open the first International Cotton Congress. The roll-call was then read by the Secretaries, Herr Biihler (Switzerland) and Mr. J. Smethurst (England). The Congress decided that all delegates present, irrespective of the number representing each country, should have one vote each. The President announced that as the proceedings of the Con- gress were private, no one must divulge information regarding its deliberations. An official report would be prepared for the press under the direction of a committee that would be appointed, and this committee would also consider the question of apportioning the expenses of the Congress. To these proposals the Congress at once agreed unanimously. The Congress proceeded to the election of three vice-presidents and a committee of control. Herr Direktor Walter (Germany) proposed that the vice- presidents be : — Mr. C. W. Macara (England), Herr Ferd. Gross (Germany), and M. Georges Motte (France). Herr Carl Beckmann (Germany) seconded. The motion was unanimously adopted. The following committee was then appointed : — Herr Arthur Kuffler (Austria), Baron Costanzo Cantoni (Italy), M. Jean de Hemptinne (Belgium), Senhor H. P. Taveira (Portugal), and Herr Rudolph Prowe (Russia). It was announced that Mr. Macara would preside on Tuesday, Herr Gross on Wednesday, and M. Motte on Thursday. This concluded the proceedings of the first day. COTTON -GROWING. 11 SECOND DAY'S PROCEEDINGS. Tuesday, May 24., igo^ Mr. C. W. MACARA in the chair. The Congress assembled punctually at a quarter-past nine. Mr. Macara, on taking the chair, said : I beg to thank you most cordi- ally for the high honour that has been paid me in electing me a vice-president of the first International Cotton Congress. I am also extremely gratified that associated with me in the office of vice-president are two gentlemen representing the two largest cotton-using countries of the European Continent — Germany and France. I cannot but refer to the tact and statesmanlike conduct of Herr John Syz, who has been elected President of the Con- gress, in asking that the affairs of this Congress should be directed on succeeding days by men of three different nationalities. Those who have had the organising of this Congress have done all they could to put each nation represented on an equal footing and to ensure harmonious working. The action of the President has con- tributed materially to this. Next in importance to food is clothing, and there is no industry which provides clothing for so large a proportion of the population of the world as the cotton industry. There is no industry that has developed more rapidly during the past quarter of a century, and there is no industry that is more likely to develop in proportion to the increase in the wealth and population of the world. It is an industry which, including the growers of the raw material, the spinners, manufacturers, distribu- ters, carriers, and consumers, affects the well-being of countless millions. Anything, therefore, which interferes with the smooth working of an industry of such magnitude is of the utmost inter- national importance. The cotton industry is of more im- portance to the national welfare of England than it is to that of any other country, hence we are perhaps more advanced in recognising what is necessary for con- ducting it successfully, and have realised that complete organisation is an absolute necessity. The employers' organisations in England are not formed as a menace to any of the opposing forces. We have really combined in order that we may prevent industrial war, which 12 INTERNATIONAL COTTON CONGRESS. we consider equally prejudicial to the interests of both capital and labour. We have also had to combine to protect the industry as a whole against the action of forces that are detrimental to its welfare. It has been the dream of my life to get the Lancashire cotton industry into one great federation; this has been almost accomplished, as all the organisations frequently join hands. For example, at this Congress we have, practically, repre- sentatives from every organisation of cotton employers in Eng- land. It has been a further dream of my life that ultimately it might be possible to get the employers' associations in all the cotton-using coimtries of the world to join in a common brother- hood for their mutual benefit and for the benefit of this g^eat in- dustry as a whole. I sincerely hope, therefore, that whatever else may be the outcome of this first International Congress, the appointment of an international committee, representative of all the nations of the world, will become an accomplished fact The difficulties in carrying on this great industry appear to in- crease rather than diminish, and it is apparent that such an organisa- tion would not only have ample work to do, but that such work has become imperative. On the i6th December last, at a special meeting of the General Committee of the Federation of Master Cotton Spinners' Associations to consider the position of the trade, it was recognised that England alone could not hope to deal successfully with the existing circumstances, and it was pro- posed that an endeavour should be made to secure the co- operation of the associations of cotton spinners and manufacturers in other coimtries which were equally affected with ourselves. Im- mediate action was taken, and the response was very satisfactory. On December 29th last a great mass meeting of the English cotton industry was held in Manchester. At this meeting it was unani- mously decided to reduce the working hours of the mills spinning American cotton from 55^ to 40 hours a week, and this has been continued ever since. This meeting consisted not only of repre- sentatives of employers, but representatives of the operatives were also present At that meeting we had with us a gentleman who is present to-day — M. Berger, vice- president of the French Cotton Employers' Federation. He has the marked distinction of being the first Continental repre- sentative to hold out the right hand of fellowship to assist COTTON-GROWING. IS us in dealing with the difficulties with which we had to contend. M. Georges Motte, the president of the same associa- tion, was unable to attend, or, as he has told me to-day, he would certainly have been present also. I am sure M. Berger must have been gratified with his experiences at that great meeting, especially with the evidence of the good relationship existing between capital and labour in England. We have made considerable progress in getting our workpeople to realise that their interests and ours are identical, and that we and they should go hand in hand in facing all the difficulties with which the industry upon which we are jointly dependent is beset. I earnestly trust that the discussions which are to commence to-day will be productive not only of the greatest benefit to one of the world's most important industries, but will be a powerful factor in promoting peace and good will among the nations. The business arranged for to-day is the con- sideration of increasing the supply of raw cotton. I am glad that not only England, but various other countries, have recognised that it is desirable, indeed necessary, to increase the supply of the raw material, and that it is unsafe for many reasons that we should continue to be so dependent as we now are upon the Southern States of America. But the increase of the supply of cotton from new countries will take years, even with all the energy and work that we can put into it. The question of cotton-growing has cer- tainly been occupying in recent years a very large share of public attention, and I earnestly trust that the interest which has been aroused in this direction will never be allowed to drop. We have pressing upon us most seriously, however, other difficulties which also should be taken in hand equally energetically, as these difficulties concern the immediate future, and for the pre- sent are even more important. I refer to the undue enhancement of the price of the raw material by those who have no interest either in the growing of cotton or its manufacture, but whose opera- tions have acted most detrimentally to the welfare of the industry. There is little doubt that cotton can be grown at a profit in the United States at 3 i^d. to 4d. a pound, according to the yield. But consider what the users of this cotton have had to pay during the present cotton season, and consider also that the price of every other growth of cotton has been raised in sympathy with the price of American cotton. The difference between the price that would 14 INTERNATIONAL COTTON CONGRESS. have adequately remunerated the growers of the raw material and the price actually paid by the cotton spinners of the world is colossal, indeed if the amount could be ascertained it would pos- sibly be found to be not far short of the total capital invested in the British cotton industry. Without in any way slackening our efforts for securing a larger cotton supply, the dealing with undue inflation of prices is undoubtedly at the present time the greatest question which we have to consider. Another cotton season will be upon us very soon, and we have already had four years' experience of a state of things such as now exists, but which has become more accentuated each year. There is no effective way of dealing with such a situation except by the users of cotton forming a combination as powerful as the combinations of those who dispose of the raw material. For example, if the users of cotton throughout the world were to form as solid a phalanx as the Liverpool Cotton Association, no undue advantage could possibly be taken of them. I consider it is essential that the users of cotton should combine if these recurrent periods of serious loss to the trade are to be averted in the future. Apart from the violent fluctuations which paralyse the industry, the inflated price of the raw material alone involves such an enormous enhancement in the cost of production, on account of the interest on extra capital required, and the increase of other items of expense, that it is quite sufficient to sweep away the profit of the industry. Then there is the reduction in the consumption of the products of our spindles and looms, as the consumers of the world cannot afford to use the same quantities as they would at normal prices. This matter, therefore, is also one of the utmost importance. I now call on Mr. Atkins, Secretary of the British Cotton-Grow- ing Association, to read his Paper. i\lR. Atkins then read the following Paper on " The Supply of Cotton": — This is a subject of the utmost importance to the cotton trade of the whole world, and England, France, Germany, and even America are feeling the effects of the present shortage of cotton. In fact, the prosperity or adversity of this trade is reflected in nearly every country of the world, as it is by far . the most important manufacturing industry. COTTON-GROWING. 15 It is universally acknowledged that the present supply is not sufficient to keep all the spindles running, and unless some new sources of supply can be found, the progress of this great industry will be checked, production curtailed, and great loss to capital and labour result. It is not necessary before an assembly so intimately acquain- ted with the cotton trade to enter into any elaborate statistics or argument to prove that this serious danger of short supplies exists now, and that the outlook for the future is gloomy, unless something is done to remedy the evil. However, I will give a few observations on the present supply, and what may be looked for in the future. The total crops of the world have largely increased during the last quarter of a century, especially in America. The estimated average for 5 years ending 1883 was 8,680,000 bales. „ 1888 „ 9,600,000 „ „ 1893 „ 11,540.000 ,. „ 1898 „ 13,600.000 „ „ 1903 „ 15.680,000 „ It will be noticed that the increase is greater in each suc- ceeding period ; yet the consumption has increased more rapidly, and has now overtaken the supply. This season's crop wUl probably, notwithstanding a shortage in America, reach 16,000,000 bales. This is divided approximately as follows: — United States of America 11.000,000 bales. India 3,000,000 „ Egypt 1.000.000 „ Smidry Countries 1,000,000 „ America thus supplies nearly three-quarters of the whole, and therefore the prices of all cotton are virtually ruled by the success or non-success of the American crop. During the last three years this has been painfully manifested, as owing to three moderate crops there has been a scarcity of cotton, and prices have been forced up, and the position has been taken advan- tage of by speculators to the great disadvantage and loss of all concerned in its manufacture. What would happen if there should be a very bad season and a failure of the crop in the States ? It is too terrible to contemplate. In addition to this, America is using every year more and more of her own cotton, and it is considered quite in the region of possibility that before long the greater part of the crop will be consumed at home. It may be asked — Cannot America, with her vast territories, grow a very much larger crop ? The answer is, that everything points to the probability that the limit of production has been nearly, if not quite reached. With a larger area planted, less cotton is grown. In 1899 23,000,000 acres produced 11,250,000 bales; this year, from an estimated acreage of over 28,000,000, less than 11,000,000 bales will be raised. The reason for this is not quite apparent, and many causes are assigned, bttt probably the labour question is the greatest factor, and one which will prevent any great increase in the near future. This is due very largely to the fact that numbers of 16 INTERNATIONAL COTTON CONGRESS. negroes, who do the principal work in the cotton fields, are leaving the country, and going either to the Southern cotton mills or to the large towns and cities. Thus the planters are face to face with a serious problem. The subject is being widely discussed by those interested in the cotton trade of America. The fact of this shortage of labour on the cotton fields is admitted, and all sorts of remedies have been suggested, even the introduction of Japanese labour. We may assume, then, that from the United States, a much larger production cannot be expected, and also that there is a great probability of a decreasing export of what is grown. The world's needs will, however, continue to increase, and more cotton be required if the demand for cotton goods is to be satisfied. I believe that we shall have as great, if not a greater development in the next ten years than in the past. Large countries are being exploited by the various European nations, particularly in Africa, and a demand for cotton goods will naturally follow, as a desire for calico is one of the first fruits of civilisation. It has been estimated that the yearly increase, based on the experience of the last few years, will be from 400,000 to 500,000 bales, so that ten years hence an additional 5,000,000 will be required. This estimate I consider too low, and would add at least another million. At present we have not sufficient, and require 1,000,000 bales to replenish stocks. This is only reckoning on the normal increase of the past few years, and, as I remarked before, a larger expansion is quite possible. I therefore believe that the world will need at the end of ten years an annual increase of seven or eight millions of bales, unless the trade is to be crippled. If the conclusions arrived at with regard to the production of cotton in the United States are correct, it is necessary that we look elsewhere for the raw material, and use our best endeav- ours to get it quickly. Let us look at the other sources of our present supply and see what are the probabilities of relief from them. First. India now produces about one-fifth of the world's total crop, and could, without doubt, enormously add to its production. Here is a very curious state of affairs. Cotton has been grown for thousands of years, and is indigenous to the country. Formerly good qualities were largely grown and are,even now, in small quantities, but the quality has deteriorated during many years, and the bulk of the cotton is now of very inferior quality, short in staple, and in no way a substitute for Ameri- can. Many reasons are adduced for this state of things, but probably bad farming and careless mixing of the seed are mostly responsible. Efforts are now being made to remedy this evil. The Government is taking the matter up, and is joining the Association in the cost of various experiments. Mr MoUison, M.R.A.C., Inspector-General of Agriculture in India, is helping the movement in every possible way, and hopes, by the establishment of seed farms, the introduction of better COTTON-GROWING. 17 qualities, and the adoption of modern methods of farming, that great results will follow. This will, however, take years. Second. Egypt comes next with its 1,000,000 bales, and competent authorities affirm that not much increase can be expected. The Egyptian Government and people are, however, wide awake, and no efforts will be spared to increase the area under cotton, which is the best paying crop they can have. But in Upper Egypt and the Soudan the possibilities are immense. Labour and transport are the greatest difficulties to face, but these will be gradually overcome, and in the course of a few years large quantities will be produced. Other parts of the world, principally South America, produce something over 1,000,000 bales annually. Cultivation will be stimulated by high prices, and larger crops will be grown, but the difficulties of transport and labour will prevent great expansion. Whilst Egypt and India may do much to help in the future, I consider that there is little prospect of the present sources of supply being extended so as to satisfy the wants of the world. Therefore new fields must be found. This work, as far as the British Empire is concerned, has been vigorously taken in hand by the British Cotton-Growing Association, which I have the honour to represent at this Con- gress. A short account of the work of the Association may interest you. The Association was formed in June, 1902, to take up work commenced by the Oldham Chamber of Commerce. The greater part of the British Empire lies within the cotton belt, and, as the results of investigations and experiments, it is be- lieved that within the British Empire all the cotton required can be grown. The development of large tracts of country will necessarily be a stupendous work, and take a considerable time, as it is a difficult matter to introduce a new industry, especially among native races only on the borders of civilisation, even if they have in their own primitive way grown cotton before. The aim of the Association is to encourage the growth of cotton by the natives and settlers in the different Colonies and Protectorates, rather than embark in the industry itself. It will be necessary, however, especially in West Africa, to estab- lish large plantations and model farms, to act as object lessons, and also become agencies for the distribution of good seed ; to train the natives in modem methods of agriculture, and the use of up-to-date implements ; and to put down ginning and baling factories, so that the cotton, when grown, can be properly pre- pared for market. The assistance of H.M.'s Government has been willingly given, and, by the help of the Colonial Governments, large tracts of land are being secured, and operations commenced Large areas will be planted this season in Southern Nigeria, and also in Lagos and Sierra Leone. In Gambia and the Gold Coast smaller model farms will be started. In all these places experts are working, and the reports they send are 18 INTERNATIONAL COTTON CONGRESS. very encouraging. Cotton is indigenous, and once the native is taught how to utiHse this gift of nature, and to reahse that his product is wanted and will find a ready market at a remunera- tive price, enormous quantities will be grown. Northern Nigeria is a magnificent agricultural coimtry, where cotton will grow in profusion and only wants proper cultivation. The experts have reported that all over West Africa cotton grows luxuriantly in a wild state ; the natives never cultivate the plant, but gather what they require for spinning and weaving their native cloths, which, considering their primitive methods, are really very fine. It is found that three qualities predominate, (i) A yellow, short, and soft fibre, quite useless ; (2) a creamy, moderate- stapled and fairly strong, very like rough Peruvian ; (3) a white, good, strong fibre, about an inch to an inch and one-eighth in length, and a very good substitute for American. This last class will be cultivated as largely as possible and the others eradicated. American seed will also be tried, but the general opinion is that the native will succeed best. In the West Coast of Africa, with its native cotton, almost unlimited land, and abundant labour, guided by expert assistance, the possibilities are immense. Provision will have to be made for better transport by rail, water, and roads. The assistance of the Government has been promised in this direction, as they fully realise the immense importance of a successful issue of this undertaking, both to the mother country and the Colonies. British Central and British East Africa, Rhodesia, and Uganda also promise to prove cotton-producing countries ; here the Egyptian variety can be satisfactorily grown. From British Central Africa a considerable quantity is now coming forward, and next year probably forty to fifty thousand acres will be planted. The Association is encouraging the planters by ad- vances, and supplying machinery for ginning and baling, and the prospects of these territories becoming large producing areas are very good. The West Indies formerly produced a large quantity of cotton ; in fact, the finest Sea Island cotton was first grown in Barbados. The industry was neglected in favour of sugar and almost died out. An effort is now being made, and with every prospect of success, to induce the almost ruined sugar planters to turn their attention to cotton. The Government are encouraging the movement, and Sir Daniel Morris, Director of Agriculture for the West Indies, is giving special attention, and the various local authorities are also assisting. Already thousands of acres have been planted and very good cotton produced, and for the finer classes of cotton a considerable addition to the supply is thus assured. In many other parts of the Empire cotton can be grown — Ceylon, Burma, Borneo, Cyprus, Northern Australia, Fiji, British Guiana, British Hondiuras, etc. COTTON-GROWING. 19 From this brief survey, it is evident that in the matter of cotton the British Empire can be self-contained Sea Island from the West Indies, American qualities from the West, Egyptian from the East of Africa, and the shorter staple from India ; in fact, all grades of cotton can be grown under the Brit- ish flag. To encourage and foster this industry, the British Cotton- Growing Association is giving assistance in every possible way, and the future prosperity of the cotton trade of England de- pends very much on the result of these efforts. As Britishers we have put our hands to this work, and no pains will be spared to make it a grand success. As I stated in my opening sentence, this question affects all cotton-spinning countries, and all are fully alive to the ocn- lous position. The German Colonial Agricultural Committ,:e and the French Cotton Association are vigorously working oa lines similar to those of the British Association in their African territories, and we wish them every success. These Associations are in cordial communication with each other, and much valuable information has been exchanged. In conclusion, let me once more repeat that this is a vital question, and every assistance should be rendered to those who are working to increase the world's supply of cotton, for on the results of their labours depend largely the very existence of the cotton trade, the success or ruin of the employers, and the prosperity or misery of the workers. The Chairman, after thanking Mr. Atkins, said : The British Cotton-Growing Association, although it was primarily started to grow cotton for the benefit of the British Empire and to develop the British Colonies, is really working for the benefit of the world. For whatever success the British Colonies or the colonies of any other nation may have the whole world will benefit. The cotton grown is available for all, and therefore it is most desirable that no narrow view should be taken. I am sorry to see it expressed, even in high places, that we are concerned about this cotton-grow- ing as being solely for the benefit of the British Empire. We are concerned about the welfare of the world. The supply of cotton is a world-wide question, and wherever it is successfully cultivated it will benefit humanity in general. Baron Cantoni (Italy) : I think I shall only be interpreting the sentiments of the Congress if I ask everybody to join me in an -expression of deep gratitude to the British Cotton-Growing Associa- tion. Whatever we can do to master the cotton mar- ket, or to keep people from abusing their mastership of it, we should do ; and nothing will help so much in this direction as the provision 20 INTERNATIONAL COTTON CONGRESS. of larger supplies of cotton. We are sure the business of the British Association will be managed with the courage and the enter- prise which the English people bring to whatever they do. The Chairman : I now call upon Herr Wilckens, Secretary of the Colonial Agricultural Committee, Berlin, to read his Paper on " The Supply of Cotton." Herr Wilckens read the following Paper: — Established in 1896, the German Colonial Agricultural Com- mittee, without resorting to agitation and controversy, strives for the public good, by means of thorough pioneer agricultural works, for the establishment of the German Colonial interests. The following are amongst the important results of the undertakings of the German Colonies : — The introduction of the india-rubber trade and the improvement of cocoa-planting. The discovery of the durability of gutta-percha for cables. The acquisition of machinery for obtaining a reasonable profit on the products of the oil palm, the cocoa-nut tree, the earth-nut^ bananas, etc. The supply of water by springs, etc. Acknowledging the threatening danger of the increasing disproportion of the world's cotton production to the world's cotton consumption, Germany took up the question of the supply of cotton from African territories in 1900. The Colonial Agricultural Committee sent out in November, 1900, the first cotton mission to the West African Colony, Togo, and since then the cotton-growing experiments in Ger- man East Africa and the other German Colonies have been extended. Upon the present position of the German cotton-growing undertakings the Committee supplies the following report : — The Cotton Expedition in Togo consists of the German- American planter and former Sheriff, J. H. Buvinghausen ; buyer F. Stumpf, well versed in West African affairs ; and the machine master, Paul Fleischer. The members of the expedi- tion travel continually through the Colonies during the plant- ing and harvest periods, May to June and December to March, in order to encourage cotton-growing amongst the natives and settlers. Journeys to the neighbouring English and French Colonies have been undertaken in order to make comparisons with cotton-growing experiments there. The expedition looks after the experimenting stations, Tove,. in the plain of Misa, and the newly-erected training school, Nuatscha, in the district of Atakpaime, directed by the Ameri- can experts, Messrs. J. Robinson, F. Griffin, and H. Bryan. In Nuatscha intelligent natives in large numbers are being educated, who find employment as teachers in their native districts. Under the influence of the Tove station, in the opinion of the Bremen Cotton Exchange, the Togo cotton im- proves each delivery, the results obtained by mixing American COTTON-GROWING. 21 with native seed realised the highest figure obtained so far for Togo cotton, namely, " full good middling, about 30 mm. staple, 75 pf, per j4 kilo., on 25th Feb. of the current year." The expedition controls the buying markets and ginning stations opened in the Colonies. Here the distribution of native and foreign seed takes place. Up to now about 50,000 lb. have been distributed. Ginning stations of the second class have been erected with coal-gins, those of the third class with hand gins and presses. A station of the first class with steam power under European direction is established on the railway line Lome-Palmie. The crop of 1904, which is now coming in, according to the estimate of the expedition, amounts to about 200,000 lb. Thanks to the valuable assistance of the Imperial Repre- sentative Governor, Count von Zech, and the District Director, the planting area has been increased this year fivefold, so that with a normal development of cultivation a crop corresponding with the increased acreage may be expected in 1905. Noteworthy are the first large cotton-planting experiments of the plantation Kpemi G.m.b.H., which cultivates cotton along with the planting of cocoa-palms. The plantation has at its disposal well-trained cattle and is well laid out for transport, being situated near the railway in course of construction on the coast of Lorne-Klein Pops. To encourage the further extension of cotton-growing a cotton exhibition is to be held at the end of the year in Palmie. Prizes for special productions of quantity and quality will be distributed. An allowance for carriage is made on all exported cotton. A cotton conference of those interested is held every year for the purpose of discussing the experiments made in the various districts, and for considering what steps are to be taken during the next campaign. A most important condition for the further development of a staple article like cotton, on a large scale, and in the cal- culation of which every pfennig tells, is, of course, a cheap and satisfactory means of transport. Owing to the very prevalent cattle diseases in tropical Africa, transport by railroads is imperative. The Committee in 1901 planned the Togo railway Lome- Palmie. The scheme respecting the raising of a locin for the building of this railway, amounting in round figures to 8 million marks, is now before the Reichstag, awaiting decision by a ballot, in the name of 200 Chambers of Commerce, towns, in- dustrial and Colonial bodies, bank institutionSv and missions. The Committee has recommended to the Reichstag the adop- tion of the scheme. The experiments of the cotton stations regarding the use of beasts of burden have been limited so far to mules from the Canary Islands, bullocks and horses from the interior, with experiments for protecting oxen against the sting of poisonous 22 INTERNATIONAL COTTON CONGRESS. flies. The Government physician, Dr. Schilling, is constantly engaged in Togo and Cameroon. Dr. Walther Busse, the plant pathologist, will commence his journey to Togo in August, for the investigation of cotton de- fects, in order to take precautionary measures in conjunction with the Cotton Expedition. Cameroon. — By means of the waterway Niger-Benoue the Committee is now having several thousand kilos, of cotton brought from the province of Garua through the intermediary of Captain Thierry, in order to establish the quality and cost of Garua cotton. The Imperial Governor v. Puttkam- mer describes Garua as a rich cotton territory of the future. In Bali cotton-growing experiments are being made by the mission. German Sojth-West Africa.— A scheme for farmers to carry on cotton-growing in a territory bordering on the future Otavi railway is at present in abeyance. When the Herero in- surrection is at an end the Committee will resume operations. From Okahandja cotton samples equal to fine Sea Island at I mk. to 1.70 mk. per }i kilo, have been received. German East Africa. — The cotton operations, on account of dissimilar conditions, differ entirely here from those in the Togo Colony. Here the principal objects are to sustain the cotton-growing experiments of the commercial and planting firms and missions under the guidance of cotton experts, by granting insurance money, and making advances by grants of free lands, gins, and packing presses. The German-American cotton farmer and former County Commissioner in Texas con- ducts the cotton expedition. He is assisted by the cotton farmer H. J. Wiebusch (also of Texas) as agricultural assistant, and by Karl Sasse in the cotton machinery department. The enterprise is being advanced in every direction by the Imperial Governor Count v. Gotzen. The opinions of the Bremen Cotton Exchange on East African cotton are as follows : — {a) "Value on 21st January, 1904, about 90 to 92 pf. per l^ kilo., excellent class and staple. The latter only mixed a little here and there, {b) Value i to 1.05 mk. per ^ kilo., staple very fine, clean, a little rougher than Joanowich." For East Africa the planting period has been fixed as January to April ; the harvest begins in August. About 70,000 lb. of foreign seed of various sorts, principally Egyptian have been distributed. In this expedition the following have been cultivated in the north and south coast districts : Tanga-Wilhelmstal-Mombo 900 acres, Pangani 20 acres, Saadani 40 acres, Bagamoyo 160 acres, Daressalam-Mrogoro 300 acres, Moharo 60 acres, Lindi 200 acres, Mikindani 20 acres, Kilwa 450 acres, together more than 2,000 acres. In the Kilwa district the Cotton Inspector reports further about 100,000 acres as good cotton land. The Usambara COTTON-GROWING. 2a railway has had a beneficial effect upon cotton-growing in the Tanga district. The Committee has petitioned the Reichstag^ to sanction means for a railway line from Daressalam-Mrogoro. For the information of the districts interested in a railway in the south of the Colony (Kilwa-Nyassasee) Mr. Paul Fuchs, formerly representative of the German East African Company, acting for the Committee, was sent out on April 19th. In regard to the question of cattle Dr. Panse is entrusted with investigations. In Songea, on the Nyassa, in the Kilimandscharo district, and especially in the Province of Nera, large experiments have already been made in cotton-growing by natives and settlers. The Nera and Kilimandscharo cotton is sent by the Uganda Railway via Mombassa for export. The Committee is now making preparations for cotton-grow- ing in the Rudfidji district on a large scale, as, according to the evidence of experts, there are more than 700,000 acres of excellent cotton-growing land, and there are also facilities for transport. For the carrying out of this special task, Mr. F. A. Holz- mann, recently appointed German-American cotton expert, has been selected. He was formerly in the service of the American Government, and has conducted a training school in Texas. In this district a school for the education of cotton instruc- tors will also be established. At present a central ginning station with steam power is being erected, and the 26 ginning machines and 13 presses which are in use will be forwarded inland. A Cotton Exhibition will be held simultaneously with the Agricultural Exhibition arranged for in August by the Imperial Governor, Count von Gotzen. For cotton and other important national raw materials and products, as well as for cattle, the Committee offers valuable prizes. At the same time a Cotton Conference will be held, to assist in further investigations of the position of cotton-growing in the Colonies. Similar investigations will be made in the Egyptian cotton- growing districts by the Cotton Inspector and Professor Zim- mermann-Amani, under the direction of the German Agricul- tural Attaches in Cairo. Like the Woermann Line for Togo, the German East Africa Line and Wm. Oswald and Co. have most kindly under- taken to forward, free of charge for the time being, cotton from German East Africa to Germany. The Imperial Consul Scheiat is preparing in Galveston for the position of cotton expert. Recently the Imperial Consulate has undertaken the protection and the control of the German landlords who are being sent to the Agricultural and Mechanical College of Texas. New Guinea. — Cotton-seed has been placed at the disposal of the firm of Kaufmann V. von Blumental in Kuragakaul, and free transport of the crop has been promised. 24 INTERNATIONAL COTTON CONGRESS. Asia Minor. — To encourage production in the territory of Adana, a German-Levant Cotton Company has been formed, and the undertaking will be assisted by the Committee. Morocco. — Through the German-Morocco Company the Committee in Morocco has forwarded Egyptian cotton-seed to the Germans interested, namely, E. G. Dannenberg in Mazagan, and Richter in Saffi. South Brazil. — American cotton-seed has been delivered to the Hauseatic Colonisation Company and to the Colonial Committee. Borneo. — The German coffee company Rambey-Serdang receives American cotton-seed. Working. — Fifty spinners were engaged in putting to a practical test the 140,0001b. of Togo and East African cotton imported into Germany up to January of the current year. All agree in saying that the German Colonial cotton has im- proved from delivery to delivery, and that a thoroughly suitable quality for the German industry is produced. In conclusion, an American opinion of the German Colonial cotton enterprise is of interest The official report of the Ameri- can General Consul, Frank H. Mason, in Berlin, points out "that the well-planned and expert working of the Colonial Agricultural Committee respecting the establishing of cotton- growing in the German Colonies on a large scale must be recognised," and concludes as follows : " A number of years may elapse before the European cotton-growing crusade attains to everything it has set out for, but whether it pleases us or not the time will come sooner or later when, outside America, the cotton of our southern States will no longer have undivided sway." The thanks of the Congress were accorded Herr Wilckens for his valuable Paper. A Paper, by Director Stark, of Chemnitz, on " The Importance of Cotton in the World's Commerce and Industry," was at his re- quest taken as read, after being distributed to the members of the Congress. Senhor H. p. Taveira (Portugal) read the following Paper on " The Cultivation of Cotton in the Portuguese Colonies." This Paper was prepared by M. Augusto Ribeiro, of Lisbon, on behalf of the " Association Industrielle Portugaise." Everyone is acquainted with the unprecedented crisis which is so acutely felt by the cotton industry of the whole world, and with the efforts made by all countries to shield the indus- try from the effects of the scarcity and the high price of the raw material. COTTON-GROWING. 25 We in Portugal are familiar with the efforts of the English Master Cotton Spinners' Associations, and with the work of the British Cotton-Growing Association in England and of the Colonial Cotton Association in France, in entering upon a campaign — the success of which seems to be assured — with the object of establishing or encouraging cotton-growing in all Colonial territory, in order to place the cotton industry in a secure position. The work which has been commenced is essentially practical, and it is in this direction that a certain and speedy remedy is to be found. Through being in touch with the undertakings of the great European industrial powers, Portugal recognises that she is most favourably circumstanced for contributing in a direct way to the supply of the raw material necessary for her own cotton industry, and, to a certain extent, for that of other nations. You will allow us to describe the history of cotton-growing and cultivation in the African Colonies. Cotton is a natural and spontaneous product of all the Portuguese Colonies, from Guinea to Timor, but the production is greatest in the pro- vince of Angola (Western Africa). The ^owths which pre- dominate are the Gossypium arboreum and Gossypium herbaceum. In Cape Verde and Guinea a third class exists — and this has been worked industrially — namely, yellow cotton, which, in the opinion of an English naturalist, Dr. Rohr, is of the Siamese kind. In 1852 the Marquis of Sa da Bandeira, at that time Minister of Marine and of the Portuguese Colonies, whose splendid efforts in the development of the Portuguese Colonies are well known, determined to perfect and specialise cotton-growing in Western Africa. For the furtherance of this useful object large grants of land for the exclusive cultivation of cotton were made to well-known capitalists at Lisbon, notably to Mr. John Beaton, an Englishman. Selected seeds were imported direct from Brazil and the United States, and were supplied to the farmers free of charge. A Brazilian expert was engaged to superintend the plantations and to attend to the preparing of the products. Pickers and presses then in use were acquired "by the Portuguese Government and forwarded to .^gola. During the period from 1852 to 1862 ten shipments of cotton seed were received by the Portuguese Colony. In- structions relative to cultivation were published, and very widely -spread. The Portuguese Government declared as free the ex- port of Colonial cotton, and paid the farmers for the first three crops, in order to introduce the product to the consuming markets. The first samples of the new cotton arrived at the capital at the commencement of the year 1858, and were sent to Manchester through the intermediary of Mr. Graham, a British merchant established in Lisbon, a friend of the Mar- 26 INTERNATIONAL COTTON CONGRESS. quis, and a gentleman devoted to the development of business relations between Portugal and England. As a result, Portuguese cotton was ranked amongst the first class, that is to say, equal to Egyptian, which was much sought after by the English cotton industry. The buying price naturally depended upon the quantities put upon the market, as well as upon the guarantee of its perfect selection. The exports of selected cotton (distinguished from native) reached 10,000 kilos, in 1858, and they rose to 300,000 in 1867 and to 800,000 in 1877. At the International Exhibition held in Paris in 1 865 Portu- guese Colonial cottons were exhibited. Cape Verde showed samples of yellow cotton, Angola, samples of arboretim and herbaceurn, grown in the north and south of the province, almost all being products of the seeds of New Orleans. From the central region the cotton was from the seeds of Brazil (Pernambuco) and the United States (Upland, Sea Island, and New Orleans). It has been seen that all the departments of the province produced cotton, notably Mossamedes, Loanda, Benguella, Congo, and Malange, where important works of replanting and selection have now been commenced with great hope of success. At the head of this movement for restoring the prosperity of West Africa might be mentioned the Compagnie du Cazengo, which is already undertaking sugar-planting. Two other Colonial com- panies — La Compagnie de Cabinda and La Societe Cotonniere du Congo — have been formed quite recently for experimenting with cotton-growing. The Portuguese Government is not indif- ferent to this movement, and we think it is disposed to take measures for the opening up of the cotton industry by studying the best methods of American planters and by sending to West Africa a number of experienced persons in order to establish regular plantations. The cotton industry of the nation consumes annually 15,000,000 kilos, of cotton. A hectare of land will contain about 400 cotton plants, each capable of producing about 2 kilos, annually. It would therefore be sufficient to cultivate 20,000 hectares in order to obtain 16,000,000 kilos., and this would prevent the importation into Portugal of similar foreign products, which represent an annual expenditure of 21,380,000 francs. East Africa is also admirably suited for cotton-growing, and experiments have already been commenced in Manica, Nyassa, I'lnhambane, and Zambesi, the first results of which are very encouraging. With this citation of the facts it will be recognised that Portugal is placed in an exceptional position as regards the problem of the supply of raw material for the cotton industry^ that she has a start of fifty years in cotton-growing experi- ments, and is trying to improve the quality of her product by the selection of the seeds, and by introducing, at the same time^ the most profitable methods of preparation. In 1880, at the time COTTON-GROWING. 27 of the industrial inquiry, the opinion of spinners and weavers was found to be unanimous in regard to the superior quality of Colonial cotton, but in spite of this the curdvaticn was to some extent abandoned in the year 1890, at which time the exports had been reduced to 200,000 kilos. TraveUers, however, taking the train from Loanda to Ambaca, could see, at every harvest time, on either side of the track, enormous stretches of land covered with native cotton, which was allowed to fall and to rot as being quite useless and valueless. But in view of the crisis which has caused everyone to look to the cotton fields of Western Africa, Portugal is resolved to re- new her labours in order to defend herself, and to meet the demands for raw material from her own spinners. As districts suitable for cotton-growing are already well known, an en- deavour to interest the Portuguese capitalists will be made. We shall work with firmness and courage, and whilst keeping in view the demands of our own country, we hope the produc- tion will be developed to such an extent that Portugal also will be in a position to supply the spinning and weaving concerns of the cotton centres of Europe in a spirit of patriotism of quite a superior character. And we are quite convinced that the com- mercial development of cotton-growing in the Portuguese Colo- nies will result in the production of cotton of a first-class quality. Moreover, Portugal, like the rest of the cotton-using world, eagerly awaits the results of the schemes which many countries have undertaken for the success of this work, and which are of such immense importance to the entire industrial world. Monsieur Berger read the following report, prepared by the Association Cotonniere Coloniale, Paris, May 15, 1904, on "The Cotton Question from the French Point of View " : — The whole of Europe is at present deeply interested in the subject of Cotton Supply. The total production of the world is about 14,000,000 bales of 500 lb., of which America contri- butes 10,500,000, or about 75 per cent. Year after year the number of spindles and looms in America increases. New spinning and weaving mills are multi- plying rapidly ; the erection of mills in the neighbourhood of the cotton plantations is constantly going on ; and the result of all this is that as the home consumption of cotton in America in- creases, so her power of exporting the raw material diminishes. The consumption in America of American-grown cotton has increased from 2,287,000 bales in 1893 to 3,908,000 bales in 1903 ; and the rate of increase seems bound to become more rapid in the future. This means that the French cotton industry will soon be face to face with a grave disaster unless a solution of the existing difficulty be found. At the present time, in order to feed its 6,150,000 spinning spindles, and its 108,000 weaving looms, the French cotton :28 INTERNATIONAL COTTON CONGRESS. industry pays each year more than 300,000,000 francs for the raw material, and this sum goes to the United States, Egypt, and to IndicL But even amidst these conditions, the French industry is able to supply its requirements and to maintain its position- Should, however, the time come when America is in a posi- tion to use all the cotton she produces, then the state of affairs would be very different The 300 French spinning concerns, and 600 weaving establishments, without taking into account the dyeing and finishing works, would be obliged to close their doors, forcing on to the streets, deprived of their means of existence, a multitude of workers numbering more than 250,000, and thus causing a labour and economical crisis, the consequence of which would be disastrous. Here arises a real national danger, which it is necessary to avoid. It is to be very easily found in the full utilisation of all those of our Colonial territories which lend themselves to cotton- growing. The French Colonial possessions are vast and exten- sive. In most of our Colonies cotton is of " spontaneous growth," from which, however, it would not be safe to conclude that all the Colonies are adapted for supplying cotton. Certain qualities of contexture are in fact necessary for cotton, without which its use in commerce is either impossible or would give very inferior results. The other great European nations menaced by the same danger are making great efforts to escape. Russia obtains her cotton from Turkestan, and is developing its production by every possible means. England owns India and Egypt, but the cotton produced in these two Colonies is used for very special purposes. The English metropolitan industries would therefore be condemned if England did not possess other terri- tories. She has discovered them in Western Africa, where experiments are being made with every prospect of success. Germany is making similar experiments in her several African Colonies, and particularly in Togo and Cameroon. As the cultivation of cotton does not come under the cate- gory of rich products, it might be taken for granted that for the present, in any case, there is no prospect of furthering its de- velopment except in the new Colonies, where the native, whose requirements are restricted, is satisfied with smaller gain. But still, in those Colonies where the means of transport are elemen- tary, care must be taken not to burden the cotton with such freight charges as would destroy the good effects of the work undertaken. There is indeed one standard which must govern every attempt made to shake off the predominance of America, and this is, the low price of American cotton. Three of our Colonies appear at the present time in favour- able condition. They are : The Soudan, Dahomey, and the Colony of Madagascar, with their dependencies. COTTON-GROWING. 2^ In the Soudan the valley of the Niger offers such facihties for cotton-growing that there has been no hesitation in giving to this river the name of Nil Francais (the French Nile). The study of the subject of cotton has been undertaken in a special manner by M. le Capitaine Lenfant. Previously, in addition to this, M. le General de Trentinian had made practical experiments in buying native cotton and had obtained excellent results. The immediate possibility of growing cotton in some of the French Colonies in Western Africa having been demonstrated, what is there that remains to be done in order to obtain a decided and rapid development of this production with a view to combating the American danger without delay? There has been formed in France a Colonial Cotton Associa- tion on the lines of the English and German Associations. The French Association consists to-day of 548 members, including donors, founders, honorary, and active members. The annual income is not in proportion to the importance of the object in view, but there is no doubt that we in France shall: soon be able to obtain the unanimous support of all those interested We think it well to reproduce at this juncture the view which M. Baudin supported with remarkable energy in the Journal on the 5 th June, 1903 : — "Is not the condition of this great national industry exceptional, and exposed to ruin by a nation whicb possesses superior and irresistible resources of nature? " Is there not a danger which takes the form of a national question ? " The French * Industriels * are to be complimented for having taken the initiative by establishing a Colonial Cotton Association. On their success rests the fate of nearly 1,200,000 European workpeople. Mighty conflicts^ are in progress, in which labour is at stake, and which, cruel as they may seem, will be the tribute of peace and the- guarantee of human existence." In England the subscriptions reach 2,500,000 francs. The list is very interesting to study. Subscriptions of 6,000 to 12,000 francs given by private firms are numerous. Those of syndicates, associations, and amalgamated societies vary from 12,000 to 75,000 francs. Five workpeople's associations figure in the list, with sums ranging from 1,250 to 25,000 francs, giving a total of 62,500 francs. After a long and careful study of the subject, and after hav- ing consulted everyone of recognised authority, either as re- gards the Metropolitan or the Colonial point of view, the- Association has decided to define its policy under the follow- ing five heads : — I. The development and improvement of cotton-grow- ing in those Colonies where the natives are fitted for it;; and in all those where cotton fibre is found. 30 INTERNATIONAL COTTON CONGRESS. 2. The study of the methods of ginning and packing compatible with the different classes of cotton and local means. 3. The study of the methods of transport and how to treat with public authorities for increasing and making transport as economical as possible. 4. The helping of planters to improve the quality of their products by buying the best classes and encouraging the formation of buying centres. 5. The distribution of selected native and foreign seeds in the villages in order to obtain more valuable types. This programme being presented, the action of this Associa- tion will make itself felt in each of the Colonial districts suitable for cotton-planting. Either through the intermediary of Colonial authorities or direct representatives connected with the work of the Association and possessed of good experience of the natives, numerous and considerable distributions of seed have been made in Africa. Ginning machines, the buying price of which delivered at Havre is not less than 750 francs, have been sent to the native centres, .and are being used. Finally the Association is actively pursuing a thorough study of each of the French Colonies as regards cotton-growing, and is engaged in ascertaining both scientifically as well as in a practical way which Colonies will be likely to yield abundant and fruitful crops. The Cotton Association has also been fortunate in obtain- ing from the Colonial Adminstration most friendly and valuable assistance. The Minister of the Colonies, who presided over the banquet given to M. Roume, Governor- General of French Western Africa, gave expression to the following words : — " It is well to repeat that that which characterises this Association most particularly, and makes it so worthy of respect and calls forth our sympathy, is, as Mr. Roume has pointed out, the fact that this is a patriotic and disinterested Association. It works in the public rather than in private interests; it is concerned with a state of affairs which might have serious consequences, not only for the manufacturer, but also for the consumer, for all the inhabitants of this country, for all those who buy and use cotton." As the work of the Cotton Association had to be immediately -extended to the territories of French West Africa, it was indis- pensable to obtain the entire concurrence of the Governor- General, M. Roume. At the banquet given to M. Roume, this gentleman ex- 5)ressed himself as follows: — " When an Association like yours appeals to us we find ourselves in the same position as the man to whom certain persons, with good intention, have suggested to him the COTTON-GROWING. 81 way to make his fortune, and who in turn does not fail to respond with all haste to overtures of such a character." The Association has, therefore, found in M. Roume a great functionary fully conscious of his position and of the necessity of favouring the efforts of private initiative in combining them with those of his administration. On several other occasions the Association has received the greatest encouragement from the eminent Chief who presides over the destinies of this important part of our African Empire. The Governors-General, M. Beau, and General Gallieni, have entirely fallen in with the view of the Minister, and like their eminent colleague of Western Africa, have offered to the Association all the help of their Administra- tion. The absolute assurance of a strict collaboration is for us the token of complete success. The Colonial Administration possesses special authority which the Association cannot have, and this is practical experi- ence which often is only acquired at a very high price, in the conduct of great industrial and commercial affairs. As enemies the Administration and the Association would only obtain inadequate results, which would be both discordant and contra- dictory. Being associated, as they are to-day, in a close bond of union, they will be able to combat the American danger, which threatens our most important national industry. M. Roume, Governor-General of French West Africa, in a let- ter dated Goree, the 29th February, 1904, says: — " In the journey which I have just made on the Niger and in Guinea, I was able to ascertain the importance of cotton-growing for these districts, and also the good results which have been obtained from the experiments of one year. " The natives have been very much impressed with the strength of American cotton which they have cultivated, and also with the beauty of its fibres. " There is no doubt that in future they will be ready and willing to replace their own types by those of other countries, the value of which they have been able to appreciate. " The experiments of 1903 have proved that these cotton plants develop and fructify regularly. " Henceforth we must endeavour to gradually eliminate from the best-known sorts those which are only mediocre in quality, and are liable to rapidly degenerate." Industrial experiments with cotton grown in the Soudan and Dahomey have been made in France, and the results which have been obtained are an encouragement to continue the work which has been commenced. In concluding a report on Dahomey cotton, M. Paul Angel says: — " Dahomey cotton, from the technical point of view, in its use in spinning and weaving, has produced excellent results. One might go so far as to say that for a cotton of 32 INTERNATIONAL COTTON CONGRESS. broussBy it is of a perfect quality. Everything, then, leads us to expect that, given suitable conditions, it will be possible to improve the quality, and to produce, in the French Colonies, cotton which will equal that of the New Continent, and that the spinning industry will be largely supplied, without reservation, by raw material, henceforth French ; which, at a date which we hope is not far distant, will exercise a marked influence in the cotton market of the world." Conclusion of a report of M. Ydoux, of the £rm of Walter- Seitz : — " We are pleased to be able to express our apprecia- tion of a new cotton, destined to render immense service to the national industry. "This cotton, scarcely yet developed, is already filling us with the highest expectations. It is easier to work than Indian cotton, and, as regards strength, can replace Ameri- can cotton for the course counts. It is very white, clean, of short staple, a little weak and rough, but has undergone with ease the various manipulations of spinning machinery without breciking, giving the workpeople less trouble than competing cotton. " After slight improvements, we can say with confidence that it will replace with advantage American cotton for ordinary counts." Conclusion of a report of M. Paul Angel : — " Goods manufactured from Dahomey cotton have taken the pigments well ; for dyeing, the shades come out well, the dyes very clear and even, the printing very neat, the finish satisfactory, the mercerising and similisage absolutely perfect " They have every appearance of goods manufactured from American cotton. It would be extremely difficult, if not impossible, to detect any difference between them, even as regards strength. They will prove to be of good service, and may be delivered to the consumer without fear." The future of the French cotton trade appears, therefore, to be certain of escape from the American danger, and guaranteed by cotton grown in the French Colonies. But there is every need for all concerned to act unitedly. We have the conviction that we are bound to succeed ; but only on the condition that we act vigorously and without delay, and that we do not allow the English or the Germans to sur- pass us. For it will be a mistake to think that each nation will only buy the cotton grown in its own Colonies. The cotton market is, and will remain, a universal one. Each nation will buy its cotton where it can be obtained on the best terms. It could, therefore, happen that by the force of circumstances, and in spite of the great efforts of the French cotton industry to further cotton-growing in our Colonies, that, to the detriment of these Colonies, it would be found necessary COTTON-GROWING. 3a to continue to obtain supplies from foreign States or Colonies which have become cotton distributers. It is incumbent upon us to point out this eventuality, and to say that it can only be avoided by obtaining the effective and material assistance of all concerned. We are very grateful for the moral support which has been given ; but this is not suffi- cient It is, above all, very necessary that this should be accom- panied by substantial subscriptions, in proportion to the im- portance of the object in view, if it is desired that we shall promptly realise practical results of a value commensurate with the future of our Colonies. All the explorers, and it redounds to their credit, have had constantly before their eyes the benefits which metropolitan trade and commerce must eventually derive from their sacrifices and endurance. Many of them have even given their lives in order to secure for us the enjoyment of these privileges. It behoves us not to allow their labours to be in vain. We make an urgent appeal not only to those who directly or indirectly belong to the cotton trade, but also to all those who have the future of the French Colonies at heart Baron CantONI, reporting upon the growth of cotton m tlie Italian Colonies, said : I see that the whole Congress follows with much interest the information it has just received, and I think it may be of some interest also to hear that we are beginning to do something in our Italian Colonies. A fund has been raised for experiments in the Benadir Colony in the Italian Somaliland, but where things have gone further is in Eritrea, our Abyssinian Colony. The Royal Governor, Cav. Martini, with the technical assistance of Mr. BartoUomei-Gioli, doctor in natural sciences, and of an expert of much experience brought over from Egypt, began experimenting three years ago. Egyptian cotton has given the best results in the southern mountain slopes and valleys to- wards the Soudan. In other parts, towards the Red Sea, the season of rain not being sufficient for the cultivation of Egyptian cotton, only American cotton has grown at all, with a result not quite satisfactory, but sufficient to make it worth while to experiment on a larger scale. Thanks to the members of our Association, after going into the matter thoroughly, we have been able to raise a small company, with 570,000 lire capital (about ;^23,ooo), and we shall begin cultivating on a sufficient scale to see practical results and to give encouragement to the natives and to private enterprise. We did not think it advisable to take such a step until we thought we had found the right man. We succeeded 34 INTERNATIONAL COTTON CONGRESS. in getting the very person who directed the first experimental cultures, a man with thirteen years' experience in Egypt, and he went to Massaua last March. Now the land is prepared to receive the first cotton seed We hope in November to have samples of some 100 bales, and to be able to judge what this Colony can do. The valuable information that has been given this morning is very useful indeed, and will greatly help those who are engaged in minor enterprises. Herr Prowe (Russia), giving statistics about Russian-grown cotton, said : In European Russia cotton is grown only in the region of the Caucasus — about 40,000 bales a year. In parts of Asia Ameri- can seeds were sown some twenty years ago and the result was very good : the average quality would be about " middling." The whole of the cotton grown in Russia is about 400,000 bales a year, about one-third of the cotton required for the Russian spindles. About 800,000 bales are imported from America, Egypt, and India. The prices paid for this American seed cotton are the same as the prices paid for American cotton. This year we have got prices up to more than lod. a pound, and there is a duty of 2 j.^d. As to the further development of cotton culture in Russia, I may say that in 1890 we had about 130,000 bales, in 1899 about 300,000 bales. Now I think the quantity is about 400,000 bales a year. The following Paper was read by MONSIEUR Jean DE HemPTINNE (Belgium) : — For some time the Government of the Congo Free State has been very actively engaged in the cultivation of cotton in its territories, but it is only since the cotton crisis, which is making itself felt at present, and to which the attention of the Government has been directed, that its efforts have extended not only to the cultivation of the native cotton plant, which is met with in different parts of the Congo State, but also to the introduction and active reproduction of cotton of foreign origin. It is in this way that experiments have been made with the better known varieties, amongst which it would be well to mention the plants of New Orleans, Georgia, Sea Island, Peru, and Upper and Lower Egypt. The object of the first experi- ments was to ascertain the peculiarities of the foreign plants, the best time for sowing, the care to be given to cultivation,' the time for gathering, and the determining of the varieties to which the preference ought to be given, on account of their suitability to the soil and climate of the Congo, and the superiority of their quality and productiveness. When sending these seeds the Government issued, for the use of its agents engaged in the cultivation of the cotton plants, an important COTTON-GROWING. 35 note bearing on their cultivation, and on the gathering-in of the harvest. The Government afterwards interested itself in sending to the plantations various models of gins and presses for the pre- paration and packing of the cotton intended for export. In addition to this, the State took steps to engage expert planters, who had laboured with success in cotton-growing, gin- ning and packing, with a view to place the management of vast plantations under their direction. If one looks forward to successful results in cotton-growing on the Congo, it must be stated with confidence that plantations, directed and managed in the manner indicated, will certainly and quickly produce a full crop of cotton of the very best quality. The first crops of cotton from the small experimental planta- tions, established in the Lower Congo district, which were sub- mitted to experts, were found to be of good quality. It might be well to cite, amongst others, the Egyptian classes gathered in at the Kalamu station, which realised the highest figure, namely, fr. 2.30 per kilo. Other descriptions, like that of New Orleans, of which Sir Alfred Jones was kind enough to offer a ton of seed to the Congo Free State, cultivated under the same conditions, and harvested with even greater care, only realised prices varying from fr. 1.30 to fr. 1.70 per kilo. A sample of native cotton in Maiumbe, gathered in by the blacks without care, was estimated at fr. 1.30 per kilo. This class resembles the Indian qualities which are used for making coarse weft. The results of these first experiments lead to the conclusion that the original Egyptian cotton plants have given, and will probably continue to give, better crops than those from other lands. The second series of experiments made during the last rainy season were unfavourably influenced by a prolonged and abnormally dry season, and the plants suffered severely during the first period of their growth. The State has just been informed that these plantations will nevertheless produce crops suffi- ciently important to enable it to form a correct idea as to the quantity and quality of the various sorts which have been grown and to collect the seed necessary for future planting. In the Upper Congo the growing experiments have been con- *ducted principally in the district of Haut-Ituri, where the climate and soil appear to be specially favourable to cotton-growing. Taking into account, however, the distance which separates "this district from the coast, and the consequent high charges to which the cotton is subject for carriage from the plantations to the European markets, one cannot look forward to large crops from this part of the Congo. Further, we cannot count upon the forest region of the equator for cotton cultivation. The damp air and the constant rains which are prevalent in this part of the State are prejudicial not only to the growth of the plants but to the ripening, the harvesting, and preparation of Gossyphnn barbadense (Choice Upland). 36 INTERNATIONAL COTTON CONGRESS. the cotton. However, the Botanical Gardens of Eala, situated in the same district of the equator, are actively engaged in the selection and gathering in of cotton. This establishment is now- able to supply every demand for seed which is made. Never- theless, the Government continues to forward to the Congo seeds of the best varieties of foreign cotton. According to a recent report on the situation of cotton grown in the Botanical Gardens in Eala, it is stated that appreciable progress has been made. Of the eleven sorts mentioned below, the first eight have yielded a first crop which it is expected will soon be delivered in Brussels : — Jpland^ (Abassi). (MitAfifi). „ „ (Sea Island). (Georgian). j» » „ „ (Peruvian Class). Louisiana Cotton. Gossypium herbaceum. Gossypium barbadense (Jannovitch). New Orleans Cotton. Some time ago the Government called the attention of the Chief of the Local Government to the great advantage which the natives would derive from cotton-growing undertaken by their chiefs. Cotton, although not an indigenous plant, has at least been naturalised for some considerable time in all the districts of the Free State — especially in the districts of the Lower Congo — and as the natives understand the peculiarities of growing and reaping, there is every reason for anticipating good results from their plantations. It is in this way that growing experi- ments have been suggested to the native chiefs in the Maiumbe district. The management of the fields, their maintenance, and the reaping of the crop are under the direction of a chief. We cannot omit mention of the efforts which have been made by many agricultural societies established in the Lower and Middle Congo ; more especially by the Societe Anonyme d' Agriculture et de Plantations au Congo ; the Societies : "La Luki," Sucriere Europeene et Coloniale, " Urselia," " Lukula," and " Mazumbienne." The latter have conducted cotton planta- tions with seed supplied by the State, and the results obtained have been most satisfactory. The Government has decided to assist the undertakings to the fullest extent, and to this end it has placed at the disposal of these societies all the material necessary for preparing and packing the cotton. The various experiments, which have already proved very satisfactory, together with the fact that the natives formerly cultivated the cotton plant, which is still found in all the villages of the Lower Congo, leave no doubt as to the success of cotton cul- tivation in the Congo. At the next rainy season large tracts of land will be sown, and there is every prospect of a good harvest- COTTON-GROWING. 37 Efforts will also be made to grow cotton during the dry season, by the aid of irrigation, as is done in Egypt. All these efforts are of such a character as to ensure the suc- cess of cotton cultivation in the Congo ; and the State will do its utmost to further, in every part of its territories, the establish- ment of large plantations, which will be of immediate and direct benej&t to the cotton industry. Herr Kuffler (Austria) called for hearty cheers for the gentlemen who had given this valuable information, and the call was readily responded to. He proceeded : After hearing what the dif- ferent nations have done by themselves it is our duty to see what can be done by international work. The international standpoint is the higher one. Really it is all the same to us where the cotton is grown, and more than that, it is all the same where the cotton is used. I am very glad to hear that Russia uses her own cotton. That leaves more Ameri- can cotton for us. It is not necessary to repeat now what we all know — that America cannot produce enough cotton for the world and that America herself is using more of her own cotton every year. Do you not think it is the first duty of this Congress, or of any international organisation that follows from this Congress, to get up an agitation to show the public that this is not a ques- tion for the cotton spinner alone ? The cotton spinner does not use his own cotton. It passes through his mill, then goes to the manufacturer, then to the printer, and then to the consumer. We merely take the cotton from the planter and pass it on. We have been shown that more cotton can be grown, but that is not all we want. We want cheap cotton. Though cotton can be grown in many parts of the world, it cannot be grown as cheaply in some parts as in others, and our object should be to assist cotton-grow- ing where it can be done cheapest and with the best effect. With cotton at sevenpence or eightpence it might pay to grow it in many parts of the world, but we hope cotton will go down again, if not to 3d., to 4^d. If the price goes down you will find that interest in cotton-growing will diminish in places where the climatic con- ditions do not permit of economical culture. We ought to try to find out where cotton can be grown cheapest, and then combine to assist cotton-growing there. We cannot have enough infor- mation on this subject, and one of the first duties of any perma- nent committee that this Congress may appoint should be to gather all information about cotton-growing throughout the world 38 INTERNATIONAL COTTON CONGRESS. and to find out where it can be grown best and cheapest All this cotton speculation and gambling could not be done with such effect if there was enough cotton. I quite agree, however, with Mr. Macara that the augmentation of cotton-growing cannot be done in a short time. We have other things to look after; we have to see to our business as it is now. Still, the bottom of the evil is that there is not enough cotton, and on that account the first duty of a permanent committee of this Congress should be the assistance of cotton-growing throughout the world. Mr. H. Higson (England) : As a colleague of Mr. Atkins in the British Cotton-Growing Association Committee, I feel very much encouraged to find that this question of increasing the supply of cotton is occupying the attention of other European countries. In England we look upon our Cotton-Growing Association as an accomplished fact. We have been in existence for a little over three years, and have received recognition from all the authori- ties in the districts in which we have attempted to grow cotton. As Mr. Atkins has told you, the King and the Government have both recognised us and are lending every possible assistance. We may say too, safely, that the question has been taken up by industries outside the cotton industry. It has been seriously considered and very generously supported by the operatives themselves. Sums of money, ranging from ;^i,ooo to ;^5,ooo, have been contributed, and the generosity of the Association has encouraged the people who are trying to develop cotton-growing, especially in British West Africa, to an extent that none of us con- templated. We have sent out large quantities of seed, we have sent out machinery for ginning and pressing, we have sent engines, and, most important of all, we have sent out experts with a view to training the people to do the work. The fact that we are meet- ing together m an international manner this morning shows us that we have something in common. In our hands cotton is an article to be manipulated for the rest of the world. While we are in busi- ness for the purpose of making money for ourselves we may be looked upon as public benefactors. I am sure that the results of some of our stocktakings during the last two or three years show that we are not wrong in assuming that character. I do not think our friends who are customers in various parts of the world will envy us that characteristic. We are anxious that history shall not repeat itself. We are anxious to have larger COTTON-GROWING. 39 quantities of cotton at a cheap rate so that we may let our friends have a larger supply of cotton manufactured for the pur- pose of their consumption and their adornment. Our large organi- sation, as I have said, is doing very good and very important work. Funds have come in very generously from all sections of the com- munity. In our various trade federations we find that together wc can accomplish great things with very little trouble. In our North and North-East Lancashire Cotton Spinners and Manufacturers' Association we have over 300,000 looms ; not so many spindles, be- cause the Master Spinners' Federation absorbs the spindles. In our weaving section we have promised to contribute towards this Association a sum equal to i^ 10,000, and an equal sum, or more, has been contributed directly by the spinners themselves. The merchants of Manchester are coming to the rescue in a most gener- ous manner, and the success of the Association proves that the funds are being well and judiciously spent. I heartily wish that the outcome of this International Congress may be that the cotton spinners and manufacturers the world over may have one idea — the furtherance of both the supply and the distribution of the article in which we are all so deeply interested. The Chairman congratulated the Congress on having heard very valuable papers and speeches, and proposed : — " That this International Congress of Master Cotton Spinners and Manufacturers, being convinced of the absolute necessity of an increase in the 'supply of raw cotton, strongly urges the various nationalities represented in the Congress to take all necessary steps for obtaining such increase." Mr. S. Smethurst (England) : My difficulty is that this subject is in no way contentious. We are everyone agreed, and when every- one is agreed it is most difficult to carry on a discussion. I am sure everyone of us must have been gratified to learn of the efforts that every nation seems to be putting forth. I remember the American war and the cotton famine of 1860-4. It was a very important and interesting experience. At that time great deter- mination was expressed, especially in England, never again to be dependent upon one country for a supply of the raw material on which the welfare of so many of our people depends. It so hap- pened that America set to work after the war, and gave us a bump- ing cotton crop. Four million bales was the maximum crop grown with slave labour, and with free labour crops have gone on to 11,000,000 and 12,000,000 bales. 40 INTERNATIONAL COTTON CONGRESS. and the moment there was sufficient cheap cotton of a character we could use, the English people relaxed their efforts, and we again became, as we are to-day, entirely dependent on America. What I want to impress on this Congress is that what- ever may happen, whether America increases her production from 1 1,000,000 to 14,000,000 bales, or whether she does not, we shall not again be deluded into relaxing our efforts — our con- tinuous efforts. I shall be greatly disappointed if the International Committee, which you, Mr. Chairman, shadowed forth this morn- ing, should not secure the continuation of our efforts. If that is not done, this Congress will have failed in one of the most important objects before it. Nothing can be more gratifying to the people of my coimtry — I speak as an Englishman — than to see the good fellowship that prevails here. I call ourselves ambassadors of peace. We can look for little from the people in authority, and I say we are capable of protecting our own interests. If we only have the zeal and the determination we can secure a sufficient supply of cotton. We have the energy, we have the determination, and we have the money. I hope one of the results of this conference will be that we shall never again be so dependent upon one nation for the supply of cotton. Mr. W. H. MacAlister (England) suggested that the resolution did not go far enough. He would like it to include a reference to an international committee charged with the duty of collecting information with regard to the growth of cotton. Mr. J. L. Tattersall (England) endorsed the remarks of the previous speakers, and suggested that the Committee of Control should insert in the resolution a reference to an international committee. The Chairman, in reply, said the International Committee would no doubt deal not only with cotton-growing, but with every- thing else connected with the industry. The principle of the following resolution was then unanimously adopted, the actual terms of the resolution to be afterwards drafted by the Committee of Control and submitted to the Congress : — " That this International Congress of Master Cotton Spinners and Manufacturers, being convinced of the absolute neces- sity for an increase in the supply of raw material, strongly urges the various nationalities represented in the Congress to enlist the sympathies of their respective Governments and of the dependent industries in this question, and in all other COTTON CORNERS. 41 ways to endeavour to obtain such increase, not only in the interest of the industry itself, but also in that of the general public." The meeting then adjourned for lunch. COTTON CORNERS. On the Congress resuming in the afternoon, the subject for discussion was " Cotton Corners." Mr. J. L. Tattersall (England) read the following Paper, entitled " Cotton Comers : Some Proposals to Prevent Them " : — In this paper, I propose to place before you some sugges- tions that have lately appeared in the Manchester newspapers and proposals which are given to this Congress with the fervent hope that they may prove of service in bringing our labours to a definite decision of what is the right plan to adopt and carry out. To bring before your notice the great harm done to our trade by speculation in cotton is not necessary, as you are fully aware how the high price and the violent fluctuations of the past few months have been a cause of great anxiety and monetary loss to the whole trade ; but, it is necessary to place on the right shoulders, at once, the blame for the present im- happy state of affairs — it is the speculator, himself perhaps a member of the Cotton Exchanges of New York, New Orleans, or Liverpool, who, taking advantage of a system of " futures " in these markets, has driven the market up from 5^d. to 8^d., and it is only through the sacrifice of spinners who have curtailed production, that a higher price has not been reached and that to-day the price is not more than 7}id. It is the " futures " markets to which we must attach the whole blame for high prices and violent fluctuations. Granted, for argu- ment, that there is not sufficient cotton grown this season, surely we spinners are not satisfied that men who neither " grow nor spin," and who often never handle a bale of cotton, shall, after buying " futures " at the cotton price obtained by the grower (5^d), raise " futures " so that spinners have to pay 7^d. or 8^d. for cotton. The speculator in " futures " is called by some people " the adjuster of differences " between the grower and the spinner, but he has proved season after season to be the "collector of differences." We do not want high prices for cotton, but if cotton is dear, we must see that the grower gets the high prices to induce him to grow more cotton. Further, we want steadier prices so that buyers may feel safe in placing their orders for yarn or cloth, and that these orders may be booked with a fair chance of covering. 42 INTERNATIONAL COTTON CONGRESS. Some Suggestions — Futures Markets. The "futures" markets are dealt with in Mr. Macara's excellent article in the April number of the " Revue Economique Internationale," as follows : — "The discussion of the means whereby international legis- " lation could most readily be ensured to prevent the abuse of " speculative dealmg in ' futures ' or * options.' " 1. "A remedy at once simple and effective would be the " prohibition by international legal enactment to sell * futures ' "against what the seller does not actually possess." Other Suggestions are : — 2. The placing of a heavy stamp duty on " futures " con- tracts. 3. Alterations of the rules of " cotton associations," so that brokers shall only act for bond-fide merchants and spinners. Some Suggestions — The Purchase of Cotton. 4. A spinners* buying company to be formed, and spinners to bind themselves to only buy cotton through this company. 5. Spinners to own the cotton fields. 6. The encouragement of " c.i.f." business by spinners. 7. The carrying of heavier stocks by spinners or buying for stipulated monthly delivery. 8. The appointment of agents in cotton-growing districts to report on the crop. The variety of the suggestions for regelating "futures" shows the difficulty, and when we remember that the " futures mar- kets " are under the control of a close corporation of merchants and brokers, we must admit that our power is not sufficient without their ready acceptance, to make regulations to stop outsiders from gambling, but the suggestions for better buying methods show that there is one object to be aimed at — to buy direct from the grower. The Proposal — A Spinners' and Planters' Agency. It has been shown in the short-time movement in Lan- cashire and elsewhere that men will sacrifice immediate profits for loyalty to the trade, and in placing before your notice this proposal I would claim that this agency will deserve the loyalty and support of both planter and spinner, because the scheme will be for the benefit of both. Should a large buying company be formed, would it not follow that the planter would endeavour to thwart its efforts to buy cheaply ? 1. The agency to be a limited company. The shares to be taken up in equal amounts by planters and spinners. 2. The agency to be controlled by managers appointed by a joint committee of spinners and planters. 3. Buying agencies to be opened in all important centres in the Southern States of America. 4. Selling agencies to be opened in all important spinning centres of the States, the Continent, and England. COTTON CORNERS. 4a 5. Planters to be invited to make firm offers of actual lots of cotton, and these to be cabled to the selling agencies, and all kinds of legitimate trading to be done as at present. 6. " Futures " delivery business to be transacted by a spinner with a planter for as much as the planter may rightly expect to gather — the spinner to accept delivery — grade to be fixed, and " points on " fixed for higher grades, if tendered. 7. Prices obtained and total sales to be recorded every day, including prices for future delivery. 8. Weekly and monthly reports of crop to be cabled from every buying centre to head office, for the information of every spinner joining the agency. Yarn and cloth market reports to be forwarded to all buying agencies. 9. A fixed commission to be charged to buyer and seller for services rendered. The adoption of this proposal will give the following advantages : — 1. Spinners and planters being mutually interested, the growing, packing, and fon\^arding will be done properly. Sellers or buyers not fulfilling their contracts will be known. 2. Having reliable information of sales, prices, and market reports, it will be possible to form proper opinions of the sup- ply and demand. 3. " Futures " business will be for actual cotton, not for settlement by " differences." 4. The outside speculator will have no opportunity of un- duly raising or lowering prices. 5. A saving of 5 to 10 per cent, in profits and commissions will be obtained. As millowners all require labour and power to run their mills, so all require cotton, and it can only be to their mutual advantage that all should have the opportunity of buying their supplies under the same conditions. Continuing, MR. Tattersall said : With your permission, I would like to make one or two additional remarks and explana- tions. No plan, in my humble opinion, can be satisfactory which does not draw out the loyal support of the man who grows the cotton and the man who spins it. My proposal for a limited company would be this — that all spinners, every large planter, and every factor in the States should be asked to subscribe ;^ioo to this agency. This would bring in i^ 1,000,000 sterling, which would be all that would be required, and more than would be required, for doing what is proposed ; because, as you can readily understand, supposing this agency to have to act in the position of a buyer of cotton, their very position would give them banking facilities which would en- able them to carry a large amount of cotton. This second item. ■44 INTERNATIONAL COTTON CONGRESS. the control, would be in the hands of managers appointed by a general committee of spinners and planters. Generally speaking, the planter has been as badly hit by the speculator as we have been. The planters and factors sold this crop at 5d. to 5)^d., and the difference has gone to the speculator in the " futures " mar- kets. The third and fourth items show the way the business would be done. In every centre where cotton comes in, this agency would have its depot for buying and forwarding cotton, and every spinning centre would have its selling office, so that spin- ners would not have to go to Liverpool or Bremen to buy. Then as regards the kind of business done. Every legitimate form of business could be done by this agency. It would be able to arrange with the banks and the insurance companies and for- warding agents for the holding of cotton, should it be so de- sired, charging spinners so many " points on " per month. Therefore, instead of spinners having to finance large amounts of cotton, the agency would do it. As to the sixth item, the " futures " delivery business, we might make recommendations to the Cotton Associations of New York, New Orleans, Alexandria, and Liverpool, for the alteration of their Rules, with the hope that they may make it more difficult for " outside " operators to upset the market. The seventh item — this is important — " Prices obtained and total sales to be recorded every day, including prices and sales for future delivery." Gentlemen who come from Austria and Italy and some who come from Germany appreciate the benefit of knowing the truth about their business ; you know that such a mill has taken such a price for such a yam, such a delivery ; you know at the end of every month or every quarter what are the orders on the books and what is the amount of stock held by each spinner. In raw cotton, at present, we have simply estimated " spot " sales to guide us, and no record of the amount of " c.i.f." purchases : in Liverpool, no record even of the quantity of " futures " sold. The eighth item — weekly and monthly reports. We have reports — too many reports. Every large house which ships or imports cotton sends its reports. One New York cotton man is good enough to send every spinner his reports, and tlic same gentleman is good enough to address the cotton spin- ners of America at their annual gathering. COTTON CORNERS. 45" Now, as to the difficulties of importing cotton. Some spinners import their own cotton, and we have representatives here who are interested very deeply in the importing of cotton as merchants. Is the business at present done to their satisfaction? Is it not always a double speculation ? Not only the risk of the market but the risks of " points on." The importer who does not wish to risk the fluctuations of the market when he buys actual cotton sells " futures " at the same time, and when he sells the cotton buys back his " futures." This is A B C to most of you. Look at the position of the Liverpool "futures" market during the last four years. Take November 15 th of each year. We find that the average premium of middling on the " spot " over " futures " was 1 3 pomts. But the discount of " forward " months compared with November was as follows : December-January, 9 points ; Febru- ary, March, April, 12 points; and May- June, 13 points. So that,, assuming that the "points" on "futures" for middling remained the same, there was no possibility of a profit for the importer,, who really takes the risk of holding cotton with the hope that "points on" will increase. One word, now, as regards the legitimate and illegitimate speculator. The legitimate speculator in cotton is the grower wha sells for future delivery with a view that prices will decline, or- holds in stock with a view that prices will advance, one who sells, cotton that he expects to have or already has. Also, the legiti- mate speculator is the spinner who buys for future delivery or withholds from buying cotton which he requires for his mill. It is perfectly legitimate speculation on the part of the spinner who, whether he has orders for yam or not, thinks now is the time to buy cotton to supply his mill, or, if he decides on the other policy,, thinking prices are coming down, he buys from hand to mouth — perfectly legitimate speculation. We cannot follow the ideal plan^ of covering every order ; our grandfathers may have done it, but. now it is not possible to keep a straight book. The illegitimate speculator, on the other hand, is the grower,, tiie merchant, or the spinner who simply deals in " futures," selling that which he has not, or buying that which he does not. require to use. The legitimate purchaser acts on his best judg- ment to provide cotton for his mill. The other acts for his own personal gain, and has proved himself, whether grower, mer- 46 INTERNATIONAL COTTON CONGRESS. chant, spinner, manufacturer, or financier, to be a pure gambler, and therefore the greatest menace to the industry. In conclusion, gentlemen, this gigantic speculation in cotton, robs the grower, the spinner, and the manufacturer of the legiti- mate return for their capital and their labour. It robs the labourer of his work and his wages ; it prevents men from using their best energies in the growing, the spinning, the manufacture, and the selling of their productions. The cotton associations can prevent it if they will — if not, it will be for the International Asso- ciation to take action to protect the industry. Herr Kuffler (Austria) : I have been asked to read a paper about the organisation of cotton spinners or cotton speculation, but prefer to express my views less formally. A good many of you will think that these two questions should be dealt with quite apart. In the programme of the Congress you find them in two different places. But, nevertheless, I will take the liberty of dealing with both at once, because I do not think they can be entirely separated. In fact, I think cotton speculation has the greatest influence on spinners' organisation. As long as we have not dealt with the cotton speculation, or, to call it more pro- perly, with the big fluctuation in prices that encourage the specu- lator and bring about speculation, or are brought about by specu- lation later, which is the same thing, we cannot get the full •organisation of spinners, either nationally or internationally, that I for one think ought to be achieved. I contend that the greatest enemy that ever was, is, or will be to the organisation of cotton spinners or masters of any trade is speculation. Whether a coimtry be free trade or protectionist, the conditions of work cannot be so very different. It is scarcely possible that one man can produce so much cheaper or sell so much dearer than another man that his firm could work and prosper while others are labouring under adverse conditions of business. Still, whenever we approach spinners nationally or internationally we find that some of them, single firms or groups, think that it is not necessary to do anything, while others at the same time can only keep their mills running at a loss. As the conditions of work, the price of labour, the cost of coal, and the cost of working the mill are nearly the same for every man in the same country, the reason can only be -the cost of the raw material. And as long as there are people COTTON CORNERS. 47 who look only to speculation to make their mills pay, so long will you be unable to get proper and real organisation of spinners. As long as this speculation goes on, there will always be spinners who have done better and spinners who have done worse, and it will always be very difficult to get them into line. If you talk to some men they will be very offended if you call them speculators. They say all they do is to have a clear view of the market. They are more intelligent than the others. If these intelligent people once find that they are on the wrong side, then, of course, it is the bad outside speculator who is at fault. I think before we go into all these questions we have to make it quite clear whether we want to be specula- tors or whether we want to be spinners. The speculator can only make a profit by fluctuation of prices ; the spinner or any other trader makes a profit though prices remain stationary. The trader has to make his profit by working as cheaply as he can, but not by fluctuations in prices. I cannot follow my friend Mr. Tattersall in the dif- ference he makes between the legitimate speculator and the illegitimate speculator. I say every speculation is legitimate as long as the law does not prohibit it. I do not think these conditions will be altered soon. I call every speculation equally legitimate, but I do not think that one speculator is better for the trade than another, and I think that speculation of spinners can do more harm to the trade than the speculation of the outside man. We have heard of the enemy in the interior, and as long as we have him there we cannot fight outside. As long as we look to fluctuations in the cotton market to make a profit we cannot really stand up and fight the specula- tor. You cannot expect the man who bought cotton ten months ago at 5d. to fight Mr. Sully because he brought it up to gd. I can quite understand these men being friends of Sully. But if we want to get on the right track we have to ask ourselves whether we can do anything against these big fluctuations. I think all of you who have worked in the organisation of cotton spinners will find that it is much harder to get them into line in a year when there are great fluctuations than when there are none. The greatest enemy to business is not the price of cotton but the violent fluctuations which were especially prominent last year. The jumping up and down by 38 or 40 points because Mr. Sully or 48 INTERNATIONAL COTTON CONGRESS. some other operator wanted a little excitement in the market was not business. Now we come to the question — Can we do anything? I again must differ from Mr. Tattersall, and say that I do not think a buying agency can do away with these things. It will be another big firm, and probably the profits that the cotton mer- chants now make will be divided among the spinners. I do not grudge the real cotton merchant his profit. I do not see why it should be taken away from him. What we want to fight are fluctuations. Let us keep that in mind. The first wrong is that we have so little true information about these fluctua- tions. I quite agree with Mr. Tattersall that all the in- formation we get without exception is from the seller of cotton, whether it is the merchant, the planter, or the American Govern- ment that represents the planter, and that, as I understand, has passed a resolution in the Senate that the cotton crops are not to be overestimated, and that all reports and estimates ought to be made in the interests of the planter. We cannot expect Mr. Price to be kind enough to send stationery round the whole world only for our benefit. He has not asked a penny from me. I do not know whether he asked you to pay him. We get this information for nothing, and it is not fair to expect too much for nothing. I think it would be much fairer if the spinners of the world would combine to get proper information and to pay for it I think we are all prepared to pay for it. There are at least 4,000 or 5,000 spinners in the world, and it will require very little from any single firm to enable us to get the information we want. " It is no good if everybody has the same information," someone may say : " It is only good if I have better information than my competitor." That cannot do in the long run. That would do if we want to take advantage of fluctuations, but what we want is not to have these fluctuations. We want the best information we can get. And now I come to the first actual proposition — that is, that an international organisation of spinners be formed with the object of getting regularly the best information possible, and that every mill contribute to- wards this organisation according to its number of spindles. I think if we contributed, say, an average of 200 francs a year per mill we could get about a million francs a year, and with that we COTTON CORNERS. 49 could pay a more efficient official than the American Government could have. The figures I have mentioned are only haphazard. What I want the spinners of the world to see is that they have one com- mon interest in this matter, and that, banded together, they are so powerful that the least contribution from the individual man will enable them to do really what they like in this matter. It would be a great shame if we part from Zurich and have not at least organised this one thing. Of course that is not all we can do. I understand that a great many of you think that futures markets ought to be abolished, or at least that great alterations ought to be made in the system of futures dealings. I am not of this opinion. I confess at once that the futures system has not been what it promised to be, and the last season was really a great failure of this system of futures dealing. I say one more thing — that the easier it is to deal in futures the easier it is to make these great fluctuations. If Sully had not had the grand idea always to put up a postponed month so that everybody that held cotton had an interest to sell in the postponed month, and not to sell early, the comer would have been broken before. It is not, as many people think, only the demand and supply that make the price. That is not true. The amount of de- mand will always be in the long run the same as the amount of supply. The operating fact is the energy with which one or the other comes at a given moment into the market Each one of us is prepared if the speculator will deal with only a very limited number of bales, but if Brown or Sully, or whoever you call him, has the energy one day to come in the market with 20,000 or 100,000 bales, it is the energy with which he comes into the market which drives prices as he likes. If an energetic man comes in and buys every day 20,000 bales, all run away and nobody dares to sell. That is what makes the great fluctuations in prices. There is another thing. It is the spinner's fault, to a certain ex- tent, that the futures business has taken this great expansion. As long as the spinner im|X)rted his own cotton, as he does now with East Indian cotton, no great futures transactions were made, nor were they necessary. When the Liverpool system of putting the cotton in stock and hedging it with futures came into force then it was necessary for the merchants to use the futures, because they could not take the risk. What comes from this? The spinner thinks he takes less risk, and the merchant, as long 50 INTERNATIONAL COTTON CONGRESS. as he can deal with futures, can always do a greater and greater business. There is no trade in the world where the buyer has so little influence on the price as in cotton, and not only the buyer, but the first seller too. All who have read Mr. Macara's paper know, and those of us who have been to America and have seen how the business is done there, know by experience that the farmer has very little influence on the price. He grows half a bale to a bale per acre, and, of course, it will take a big farm to make 400 or 500 bales, and even with that he cannot do much. It is the intermedi- ates who have all the influence in this case. And now I come again to a proposal. If we want to get an influence in the trade we must see whether we can handle a big amount of money with the least possible risk. I put this suggestion to you in the hope that someone else will work it out and giw^ other suggestions, in order that we may come to some result My idea is that it is neces- sary to form a buying agency that buys like any other big cotton firm. But it is necessary to have a big amount of cotton in hand to be able to influence the market in the interest of the spinner. The market is influenced very often, but never in the interest 01 the spinner. The market is influenced either by the speculator or by the big seller of actual cotton. You will say if we have such an amount of money as will allow us really to influence the market we would incur enormous risk. It is true, but if we divide this risk and every single individual spinner takes a minimum risk, still we can do a great thing. Let us see. I assume that for every 10,000 spindles you run— I take medium counts— you use 2,000 bales a year. That is a fair average. It is all the same if I say 1,300 or 3,000. It is only for argument. Let us say 2,000. All I ask is that you take 100 or 150 bales a year from this associa- tion which I suggest you form. That is not a great risk. Take it at the average cost price to this company. If I have a sure call for the cotton then I do not want to hedge. I do not want any dealing with futures. We have been told there are more than 100 million spindles in the worid. For argument's sake, let us take it that all will join. Then it is 10,000 times 10,000. That means that if for every 10,000 spindles you only take 100 bales, we can handle a million bales of cotton and no risk with it. All the risk you would incur would be to get 100 bales perhaps a little COTTON CORNERS. 51 dearer than the lowest price because it is an average buying price, and this association, run entirely by spinners, has a million bales in hand. Do you think it will take a million bales of actual cotton to break any corner ? I think with a quarter of a million bales you can break any corner. I do not speak only of speculations to put prices up. Sometimes we have lost by speculation to bring prices down, and one was not more legitimate than the other. If we have the power to buy cotton at the rate of lOO bales per 10,000 spindles, we can buy when prices go down, and, if necessary, in the opinion of your Committee, the bales can be thrown on the market when prices go up. With the least possible risk, that would give you an influence on the market which now you do not possess. Then take one of the largest spinners in the world, a man who buys 80,000 or 100,000 bales a year and spins them himself. He has no influence on the market. Of course it is necessary to have confidence in the committee. Their transactions would be made in the interests of spinners, and, of course, they may operate against spinners who speculate. If a man has bought last season's cotton at 5d. he will think it against his interest if an attempt be made to lower the price when it has reached 8d. He would rather sell his yam at a basis of /d. when cotton costs 8d. and he bought at 5d than see the price fall. But we must always say we can make our legitimate profit without speculation. I think the ex- periment I have suggested is worth trying. I think every man who is represented by the delegates here has taken more risk in his life than buying at an average price 100 bales for every 10,000 spindles. We must understand that these big fluctuations have been caused in the first instance by the shortness of the crop. Well, this morning we have discussed the means of enlarging the crop. That, of course, will be the only real remedy. But we have to take a stand, and we find that besides the high prices it is the fluctuations that do us the most harm, and I think you cannot deal with fluctuations unless you secure an influence in the cotton market. I do not think this proposal of mine is ripe enough to be voted upon in this Congress in a formal resolu- tion, and I do not move one ; but the question is one that can be tackled at once by any permanent committee that may be formed. Supposing you do not get 100,000,000 spindles to join. Suppose you get 70,000,000 or 80,000,000. Then you can decide on the minimum number with which you will begin, and I feel quite 52 INTERNATIONAL COTTON CONGRESS. sure this is only the beginning of a great Cotton Buying Associa- tion. If we start a cotton-buying association only to save commis- sions, I do not think that will have much effect. These things should be started when cotton is plentiful and cheap, when the buyer and not the seller rules the market. Last season it was easy to sell cotton but very difficult to buy, therefore the man who had cotton ruled the market, and if we want to rule the market we must hold cotton. If men find, after taking lOO bales for each 10,000 spindles, that they have had good and cheap deliveries, they will not have the slightest objection to buy more next year, and thus the influence of the association will grow. But that is not the necessary thing. The necessary thing if you want to influence the cotton market is to hold cotton, and no individual man can do that unless he hedges in futures. Then if you hedge in futures you have no influence on the market. That is given to the man to whom you sell your futures. By international action this scheme of mine, impossible to the individual, is a very small matter and not diffi- cult to manage. It is the easiest thing if you know there are people who will take a million bales of cotton at the price you pay for it, and that they are bound to take it. You should send out good agents and pay the planter a good price. It will take no great intellect to buy the cotton if you have a client for it who has to take it, but it will take all your intellect to speculate and to try not to lose anything by the operation of monopolies. The CHAIRMAN: Mr. Tattersall's and Herr Kuffler's pro- positions, I think, contain some excellent ideas. For elucidat- ing the matter they have so ably brought before the Con- gress I have got some figures from actual experience as to what a buying agency would cost. These figures are not theoretical, but are based on actual experience of the handling of 2,000,000 bales. The managers, agents, sub-agents, and clerks cost i^ 150,000 a year, and the expense works out at something like is. 6d. a bale. That is a matter that might be laid before the International Com- mittee, which I earnestly hope will be appointed by this Congress. DiREKTOR E. Stark (Germany) : You will allow me to avail myself of the German language in this difficult matter, because I have to use principally technical ex- pressions, which it is perhaps more difficult for us to COTTON CORNERS. 53 render into English than an ordinary, plain statement. I believe that the two gentlemen who have spoken before me have penetrated into the matter so very thoroughly that, in many ways, we have felt stimulated to further activity on the subject. But the questions of the cotton trade in " futures," as dealt with by Mr. Macara, and of such an organisation as proposed by my worthy friend Herr Kuffler, are so intricate, and, if not tackled in the right way, perhaps also so dangerous, that, in my opinion, thorough preliminary studies ought to be made before definite steps be taken. I do not mean to say that I do not consider such an organisation as a very commendable one, and one that would bring us nearer the goal ; but I think it will require the work of the Committee for a considerable time to thoroughly study the matter from all sides, and later on make propositions to the Congress. But what we can achieve now is the question. I might say w^e ought to content ourselves to-day with small measures. Herr Kuffler has already pointed out how necessary it is to obtain exact information regarding the cotton crop. If we were minutely informed about the cotton crop, in the interest of the producer, and not in the interest of the speculator, these heavy falls in prices, which take place in purchases of cotton, would, in a natural way, probably become less, and I consider it of the utmost im- portance that we obtain reliable information regarding the size of the crop. I now revert to a subject that has already been mentioned this morning. An esteemed colleague of ours from Lancashire said that we do not require the intervention of those in high places in the great matter of the supply of cotton ; we are able to deal with it ourselves ; we are strong enough to increase the cultivation of cotton so that it may supply the needs of the world. No doubt our friend was quite right as far as England is con- cerned. With the greatest satisfaction and with the greatest attention I have noticed how the English Government, the English Parlia- ment, and even the working population, have manifested an intense interest in the question of cotton supply ; and I firmly believe that Great Britain is taking energetic steps in this direction. On the Continent things are different, owing, principally, to the fact that there are many countries where the cotton 54 INTERNATIONAL COTTON CONGRESS. industry does not occupy such a prominent position as in England Here, on the Continent, our duty is to impress our Governments, our ParHaments, and our whole population more and more with the importance of this question. I am, therefore, of opinion that this Congress should consider it a duty to influence the Govern- ments, and to make it clear to them how much depends upon the supply of cotton, and how necessary it is to work for an increase in its supply. The different countries should assist one another in this respect. One organisation should not oppose the other; all should discuss their experiences, and endeavour to secure facilities of transport by the Governments. Let us hope that it will be possible to obtain reliable information from our Governments, and from our Consulates, concerning the size of the cotton crop. A great deal would be achieved thereby for the time being, and I should earnestly request you to make the following addition to the resolution of this morning : — " The Congress calls the attention of the European Govern- ments and Parliaments to the importance of the question of the cotton supply, and especially to the necessity of obtaining exact information about the size of the cotton crop." Herr Wunderley-DE Muralt (Switzerland) advised the Congress to set their faces against speculation, and to determine that they would follow no man on this line. Herr Kuffler's plan, he thought, was very skilful, but he should say, get first a staff that will supply excellent information. Then they might aim at what Herr Kuffler suggested. At first, however, they should be on the safe side. Direktor Muller (Germany) : The subject we have been deal- ing with this afternoon belongs, no doubt, to the most important item of the programme. Candidly speaking, I must confess that it was surprising to hear all the different speeches, the whole of which are more or less prompted by the feelings of the cotton spinners and the wishes they would like to see realised. But it appears to me rather dangerous to put those thoughts, at this stage, into such a shape as has been done this afternoon — namely, that one should speak of creating an association, a buying bureau, a bureau of information, without considering that we are in opposition to a very large corporation, which up to now has acted as intermediary between planter and spinner. It has been said that it would be possible for us, without great sacrifices on the part of the spia- COTTON CORNERS. 55 ners, to influence the market more or less, not only as regards sales of cotton for actual consumption, but principally as regards the speculation business, as explained by Herr Kuffler. In my opinion this is by no means such an easy matter as it has been characterised this afternoon. It is also not altogether free from objection, from a moral point of view, to wish to do without the middleman. If you follow the sale of our products to the weavers, etc., down to the retailer, until they reach the public — the consumer — and then apply the principle in this case, you will come to the conclusion that it is not in our interest that all intervention of the middlemen between spinner and consumer should cease. It is not my intention to enlarge here upon this thought. What I should like to propose is that an interval be allowed in this discussion till to-morrow morning, or perhaps the day after, so that, based up)on what has been heard, new views may be formed, and fresh opinions created and expressed for our common benefit. I may be allowed to ask, for my own part, to have the debates which have taken place to-day translated into English and German — if possible, into all the three languages that have been decided upon — and to have the subject again included in our prograiime for one of the next few days. Herr Hanns Haebler (Austria) : I hope the Committee to be appointed will solve this difficult question. I was very much in sympathy with Mr. Smethurst when he talked this morning about cotton-growing. He said we have the power and we have the money. Maybe you have the money in England. You are very lucky. As far as the Continent is concerned, I ask where is the money? Every effort to grow cotton must be helped, but we want more than sympathy; we want cheques. I appeal to those on the Continent who have not helped with money to do so at once. As to the discussion of this afternoon, we cannot pledge our friends to even ;^io a mill. First, we should know that the information that will be obtained can be relied upon. Herr Fritz WaerndORFER (Austria) : I am sorry to have to speak against Mr. Tattersall and Herr Kuffler, my best friends, but you can only fight speculation by non-speculation. That is what is wanted. At the same time, we are all so accustomed to speculation, and think it so necessary, that we are not able to understand what non-speculation is. As to information, can we 56 INTERNATIONAL COTTON CONGRESS. get really good information ? I never can get to know about the quantity of pears in my garden until I see them on the trees, nor about the quality until I have eaten them, and only at the last moment do we know how many bales will be in the crop. Why do you want to have information ? What will be the result? You all go in and buy cotton the instant you know, and you will have the same mess as now. If I do not want to specu- late, I do not want to know how the crop is, or how it is not. Herr Kuffler's proposal to hold a million bales merely means that you want to be as large speculators as the others. That is im- possible. Up will arise a speculator with two million bales. It is impossible for us to decide to make great companies. I am con- vinced of that. It would be a great thing if all were convinced that each bale a spinner has in stock more than the yam he has sold is a speculative holding. Nine out of ten spinners have told me that they must have stock in advance, and as long as they do not understand that this is speculative, you can come to nothing. Baron Cantoni (Italy): I am not sure I quite follow Herr Waemdorfer. It seems to me he was coming to the conclu- sion that a bureau of information would be of no service to our industry, and that it would be dangerous to organise such an institution. Even if we subscribe to the idea that the best way of defeating speculation is non-spyeculation, why should we re- nounce the advantage of having a faithful source of information? If the English Federation had not an idea that there would be a short crop it would be perfectly useless to commit themselves to the inconvenience, and their workpeople to the hardship, of running short time. It is necessary to have a good knowledge of the majket in order to know how to guide our steps. By all means have faithful and reliable information to guard against information which is inspired by personal interest. Every man here, more or less, has acquired his position by individual value, and we desire to give value to individual quality, but when in any time of trade people abuse their position, then it is time for other people interested in the trade to organise to work against them. If a company be organised, it is not to do away with these people, but to check an abuse. Herr Kuffler said : I think my suggestion has been a great success, because no one has said it was utter nonsense. COTTON CORNERS. 57 I was prepared to hear that anything new would be considered nonsense or dangerous. I wish to say that I said nothing against the seller of actual cotton ; in fact I said that the real honest cotton trader does not want these fluctuations any more than we do. He is endangered by them just as much as we are. I myself am a member of the Bremen Cotton Exchange, and I do not want to do away with that trade. I can tell you that at a meeting of the Bremen Cotton Exchange only about six weeks ago a great many of the gentlemen there told me of the risks they ran this season by the great fluctuations. They lost in many in- stances three times their commission. I wish it to be understood that I said nothing aimed at the actual honest cotton trade, at Liverpool or anywhere else. Every honest cotton merchant will be glad and thank us very much if we can do anything against these fluctuations. The Chairman : The subject we have been discussing is only •one of many things that would have to be taken into account by an international organisation, and it would be unwise to commit ourselves in matters of the very greatest difficulty. Anything we have been discussing to-day could only be taken up after thorough investigation. We have been simply laying the foun- dations — giving people something to think over. No one will ^ver advocate that we should enter on any great scheme that has not been thrashed out in all its bearings. (At this point the Conference adjourned till Wednesday.) 58 INTERNATIONAL COTTON CONGRESS. THIRD DAY'S PROCEEDINGS. Wednesday, May ^5, IQ04. Herr FERD. GROSS (Germany) in the chair. The Congress reassembled under the presidency of HERR Gross, who, on taking the chair, said : In the first place I have to thank you heartily for the high honour which you have conferred upon me by appointing me — a representative of the German spinners' associations — to be one of the vice-presidents of this worthy and important Congress. As the three languages are admitted, allow me to express my thanks in the one in which I am most fluent. By courtesy, you have further permitted that the three Vice-Presidents shall, alter- nately, each for one day, take the chair, which duty falls to my lot to-day. In any case you will, however, completely agree with me in looking upon this decision as being what it really is, and what it must be considered — an act of politness towards the twa greatest cotton-consuming countries of the Continent ; and, fur- ther, that the real moving spirit of the whole Congress, Mr. Macara, is likewise the real president and leader. I should, therefore, like to request my honoured neighbour not only to favour me with his valuable and indispensable support^ but at all times to take the full management of affairs into his hands, whenever he considers it useful or necessary. This is all the more requisite because the important questions which we have to discuss to-day have been for a long time studied and dealt with by Mr. Macara, while several of them are either only partially known to many of us, or in part have taken us so much unawares that the full bearings of such matters cannot always- be expressed at a first consideration. I should like to add a further remark to this. The delegates of the different German spinners' associations are present, in the first place, in order to give expression to their feeling of solidarity to- wards the spinners of other countries ; in the second place, speci- ally for the purpose of obtaining information ; and I think that we, the whole of the delegates for the German spinners' associa- tions, are not authorised to agree to definite resolutions which entail for the present or future time definite obligations. ORGANISATION. 59 After the many interesting speeches which we have already heard, I must, however, say that we are extremely glad that we have come together here, and I have the firm conviction that the work of this Congress will not be thrown away, but will be bene- ficial for all cotton-consuming countries in Europe. The Committee has resolved that the important question of organisation is to be included in the order of the day. Should, however, any of the gentlemen wish to make any remarks on the subject discussed yesterday, the Committee hope that they will be as brief as possible, so that we may have time enough left to bring to a conclusion the important question of organisation, which certainly will require a rather long time. M. G. MOTTE : The members of the French Committee have not yet made any comments on the question discussed yesterday afternoon. None the less, we have listened with much interest to all the proposals made. These proposals require studying quietly and at leisure. Now we think the best means at our disposal, to ensure a successful result of the Congress, would be the appoint- ment of an International Committee. This would be a weapon like the sword of Damocles suspended over the heads of specula- tors when they knew that from a decision of the International Committee " short time " might result. It is the strongest weapon of which we can make use against speculation ; and it is the best, and the most useful result we shall be able to evolve from the Congress. The Chairman : No other gentleman having given notice of his desire to speak, I take it for granted that the question discussed yesterday is now concluded, and that the resolution which will be drawn up by the Committee will appear in the final general resolution. We now pass on to the question of organisation, and I request Mr. Macara to favour us with his Paper. Mr. Macara (England), introducing the subject of organisa- tion, said : I have studied organisation very thoroughly for many years. The gift of organisation is a somewhat rare one, and I consider it is the duty of any man who has that gift to use it for the public good. A leader must, however, be able to enlist the support of enthusiasts, or he has very little chance of success. I have had the happy experience, in the various movements which it has fallen to my lot to lead, of having had around me those who ■60 INTERNATIONAL COTTON CONGRESS, have worked to the utmost of their abihty, and have ably seconded any efforts that have been made. I am speaking from a consider- able experience of successful trade and philanthropic movements, therefore perhaps you will pardon me if I take a somewhat sanguine view of what can be achieved by efficient organisation. I feel very strongly that there is nothing which cannot be accom- plished by thorough organisation, but very little without it. The Lancashire cotton industry has, I believe, made more progress in organisation than any other. Doubtless those who represent the various countries at this Congress will think it a very difficult task to reach a similar standard. We are not yet perfect in Lan- cashire, but we are rapidly improving, especially considering the difficulties that have had to be overcome with regard to the great variety of interests involved. Fifteen years ago, or even less, we who have undertaken this work looked upon it as almost impossible to organise the Lancashire cotton industry as it is organised to-day. I mention this as an encouragemeut to those who are now earnestly endeavouring to bring about international organisation. I have no doubt that they will find, as we did, that difficulties will gradually disappear. Mr. Macara then read his Paper on " Organisation." It is becoming more and more apparent that the great in- dustries cannot be conducted on the lines of twenty-five years ago. Since then we have seen the developments of large combinations of labour, which have rendered the position of individual employers, or even of small associations of em- ployers, one of increasing difficulty. We have also seen the development of great federations of capitalists, and just as peace between nations is generally maintained by being pre- pared for war, so in industry experience shows that complete organisation of both employers and employed tends to ensure harmonious working. The organising of the workpeople's trade unions, although it has its difficulties, is much more simple than the organising of the employers' associations or federations. In the former case, the interests of the units are fairly uniform ; but the individual positions of employers are so diversified that it is a task of great difficulty to formulate an organisation that will be equit- able to all. As time goes on, however, the helplessness of in- dividual employers or of small associations of employers will become intensified, hence the absolute necessity for com- binations which will be powerful enough to deal with com- binations which might otherwise attempt to secure an undue advantage. Combinations for the purpose of safeguarding the respective interests of capital and labour, or for the benefit ORGANISATION. 6L of both, are the combinations most likely to be of lasting benefit and to stand the test of time ; but, in my opinion, com- binations for the benefit of sections of the community or of individuals are usually defeated sooner or later by the working, of economic laws. The difficulties of conducting industrial enterprise success- fully in the future are more likely to increase than diminish. This being the case, the greatest attention should be given to watching and preparing to combat the development of forces which are likely to increase these difficulties. Effective- measures should be taken to meet such combinations before^ they assume dangerous proportions. It is impossible to imagine that far-seeing men who have invested their capital in industrial undertakings, the welfare of which is seriously menaced, should not avail themselves of the means they have at their disposal for protecting their interests, even if this should involve some expense and some temporary sacrifice. The failure to do this is brought about by various causes, such as — Ignorance of the power of the opposing forces, Too great a reliance on the power of the individual to combat these forces, A desire to manage one's own affairs, A belief that individual interests are better served by re- maining isolated. Formerly such arguments might have had some force. They- have absolutely none now ; and those who prefer to remain isolated place themselves in the humiliating position of con- ducting their business on sufferance, or of taking undue advan- tage of the work and sacrifices of others. Neither of these posi- tions would, I think, commend itself to men of foresight or hon- ourable feeling. I believe that the time is fast approaching when the position of those who remain isolated will become untenable. The English Federation of Master Cotton Spinners' Asso- ciations, of which I am President, embraces nearly one- quarter of the cotton spindles of the world, and includes many of the finest mills that have ever been erected. A short resume of its work, together with the treaty between capital' and labour, known as the " Brooklands Agreement," has been translated into French and German for the benefit of the members of this first International Congress. The fact that this thoroughly organised Federation considered it advisable to propose international action to deal with the present crisis in the cotton industry proves my contentions most conclusively. Before this Congress was arranged, I wrote, by request, for the " Revue- Economique Internationale," a comprehensive article dealing with the Cotton Industry and the necessity for inter- national agreement. *This article has been printed in French,, ♦ Note. — A. limited number of reprints of this article is available for distribu- tion among the members of the Associations represented at the Congress. - 62 INTERNATIONAL COTTON CONGRESS. German, and English, and I trust will be of service in shaping the discussions on the great problems before the Congress. Mr. Macara, supplementing his Paper, continued : Two years ago there met in this very hall either the seventh or eighth Inter national Congiress of cotton workers, representing the whole cotton industry of the world. Of course we know very little about the deliberations, but there is no doubt that this movement, which began in a small way, is now rapidly gaining in importance. It is a wise policy on our part, therefore, to take steps to establish a similar combination, which will be equally representative of capital The adoption of this line of action may ensure good feeling be- tween employers and employed ; one-sided organisation is always a source of danger to harmonious working. A notable example of this, I think, was the great engineering dispute in England in 1897. The engineering employers' Federa- tion was not strong at the beginning of the dispute. They had as their leader in that great struggle one of the finest organisers that ever lived, the late Colonel Dyer, who, by almost superhuman exertions, succeeded in enormously strengthening their organisation. Had this been done before this industrial dispute took place, I am firmly of opinion that that disastrous struggle would never have occurred. I must here say that I think labour has quite as much right to combine as capital. I am merely advocating the formation of powerful organi- sations on both sides as being most conducive to the general good. Then there are combinations of other kinds. I will mention one which I had the honour to lead. You are doubtless aware that the Manchester Ship Canal was made at an enormous cost, some- thing like ;^ 1 5,000,000. When the canal was opened it was thought that a very large portion of the cotton for the Lancashire mills would come up the canal, and so reduce the very heavy inland charges involved in taking the cotton from the port of Liverpool to the mills. When the canal had been open a year it was found that very little cotton came up it. We therefore formed an organi- sation, known as the Manchester Cotton Association, mostly com- posed of spinners. We were told that it was absolutely hopeless to attempt to combat the Liverpool Cotton Association, which, I think, is a fine example of the power of a compact body. It is the ORGANISATION. 63 most complete organisation I have ever known. The opinion was freely expressed that we had absolutely no chance of success. However, we worked away, and at the end of each succeeding year we were able to come before the subscribers to the Man Chester Cotton Association and to show them a considerable in crease in the direct cotton imports to the port of Manchester. Year after year that went on until we are now importing something like 650,000 bales per annum by the canal. That is not as much as many of us hoped would have been brought to the Lancashire mills by the canal, but, considering the forces we have had to contend with, it is satisfactory. Not only is there a large saving secured by those who import cotton direct to Manchester, but there is also a much larger indirect saving. The Mersey Docks and Harbour Board, owing to the competition of the canal, have reduced their dues considerably. Further than that, shortly after the canal scheme was projected a reduction was made of 2s. a ton on the very high railway rate for bringing the raw material from the sea, and taking the manufactured products to the sea. That 2s. looks a very trifling sum, but it, in conjunction with larger reductions in other directions, means hundreds of thousands of pounds sterling per annum ; indeed altogether it is estimated that by taking due advantage of the Ship Canal the Lancashire cotton trade has been saved nearly half a million pounds sterling per annum. Another example of what combination can do is an association that was formed about two years ago to deal with excessive freights brought about by the action of shipping rings. The Lancashire spinners and manufacturers export little direct This work is almost entirely carried on by the large export houses in Manchester. We found that cotton goods were charged 52s. a ton for being carried from Liverpool to China, whereas British ships were carrying American cotton goods to the same market — 5,000 miles farther — for 26s. a ton. Those who followed trade de- velopments throughout the world noticed that America was in- creasing her trade in cotton goods rapidly in China. Going into th<" calculations, it was found that the heavy freight charged for British cotton goods was equal to nearly 3 per cent, on the capital invested in the machinery engaged for the China trade. When this was discovered a powerful association was at once formed of delegated representatives of employers and employed in the 64 INTERNATIONAL COTTON CONGRESS. cotton and other industries and of the Chambers of Commerce and the large municipalities of Lancashire. This association met and discussed the subject in all its bearings. The effect of this handi- cap on the British cotton industry was so effectively exposed in the press, that when a deputation was appointed to wait upon the directorate of the China Conference lines of steamers, so strong a case was made out that in a little over a fortnight the freight was reduced to the level of that from New York. It is estimated that this action alone saved the Lancashire cotton industry about ;^ 1 00,000 a year. The practical result of this reduction is that,, though the trade with China has been very bad, owing to the dis- turbed state of the country, the cotton trade of England with China has only been slightly reduced, while the Chinese im- port trade in cotton goods from other directions has been reduced nearly one-half. The Federation of Master Cotton Spinners' Associations is the most completely organ- ised of all our Lancashire employers* associations, and, being so, has been able to render most valuable services to the whole of the cotton industry. In the great struggle of 1892-3, when we had a labour dispute that lasted five months, the Federation fought the battle of the whole trade. The struggle ended with the famous treaty known as the Brooklands Agreement. That struggle, although disastrous at the time to both sides, has been productive of enormous good, and the Agreement has had the excellent effect of promoting good feeling be- tween employers and employed. There are many other important matters which have been effectively dealt with by combination which could not have been dealt with in any other way. With such experience of what can be accomplished I venture to think that there will be no more difficulty in establishing an international organisation than there was in establishing the British organisa- tions to which I have referred. I endorse what Mr. Smethurst said yesterday — that this Congress will fail in its object unless a permanent organisation representative of the various countries is appointed. There can be no binding resolution as to the powers of such organisation until the report of this Congress has been placed in the hands of the numerous associations represented here. After this has been done, the International Organisation, backed by the authority of the associations it represents, will have full power to act in the interest of the world's cotton industry. ORGANISATION, 65 Another cotton season will be upon us very soon, and the Inter- national Committee, having the authority of its associations behind it, will be able to make its power felt with telling effect. (At this point it was announced that the discussion on cotton corners would be resumed at a later stage.) The CHAIRMAN: I believe I speak here in the name of all, when I express to Mr. Macara my hearty thanks for the ex- tremely interesting communications which he has just made to us. At the close of his speech he has put forward the proposal that an International Committee should be formed, and the first thing to do will be to open a discussion thereupon ; and then, as a matter of principle, to take a vote whether such an Intemationcd Committee shall be formed. It is proposed to proceed first of all with the discussion about organisation ; and to continue this after- noon the discussion on the other matters requiring further de- bate, should such be desired. I put this motion to the vote. On the vote being taken. The Chairman said : I think everybody is agreed on the pro- posal that we now discuss " organisation " and leave the remaining matters over either for this afternoon or to-morrow. DiREKTOR Walter (Germany): I should like to say that the proposal to form the Committee now is, in my thinking, fully deserving of support We have, then, to begin with, completed a definite piece of work ; whereas, if we were to continue the discussion of all the matters which we have to treat upon here, we should have to de- bate first of all for days. We can do that after we have completed the work in question, which has for its great aim to make clear the fact that we wish to be unanimous in the representation of our common interests. This should be a striking proof for all those who are working against our interests that we have quickly found the way in which our efforts to promote our mutual inter- ests shall be directed. Before all things it is necessary that whatever we do shall be maturely deliberated upon, so that we may not, after insuffi- cient deliberation, take steps which perhaps, later on, would not prove to be adequate. We who come from Germany have assembled here primarily for the purpose of proving to the gentlemen who have convoked us, especially to those from England, that we are willing to fight 66 INTERNATIONAL COTTON CONGRESS. side by side with them for the cause of our common interest against the common foe. From the moment of the receipt of the invi- tation up to the present we have had too httle time to enter with our friends into the details of the matters which have to be dealt with here, and have hitherto been discussed. We are therefore not in touch with those who have sent us here, and it is necessary that we should take back with us the suggestions arising out of the subjects which are to be brought into consideration. For this reason it is also necessary that we produce, so to speak, a crucible into which we shall poiu: after- wards all that proceeds from the discussions of the whole of the branches of our cotton industry here represented, and this crucible would have to be, and would be, the International Committee. And therefore, to cut the matter short, I request you to support the motion that an International Committee shall now be elected. As we, as a matter of fact, have not received from those who have delegated us express authority for taking such a step, it appears to me practical that this condition should be laid down : that in case a change might become necessary in the Committee through the withdrawal of any member, the gentleman who is to take his place shall be appointed in his own country — i.e.y a substitute shall be supplied from there. I shall afterwards take the liberty of pro- posing the gentlemen who shall form this Committee, provided no other gentleman makes such a proposition in the meantime. Mr. J. R. Byrom (England) suggested that before the Congress proceeded to the election of a Committee it should know something of the nature of the business that the Committee would undertake. Herr WaerndORFER (Austria) agreed with Mr. Byrom that it would be advisable to define the functions of the Committee. Mr. Macara thought that the first duty of the Committee would be to prepare a voluminous report of the Congress proceed- ings. He did not think they could define the functions of the Committee that day. Herr Wunderly-DE Muralt (Switzerland) said that on some matters the views of the Continental spinners were quite different from the views of the English spinners. The most difficult task before the International Committee was to unite them. In Swit- zerland they had had a great many Congresses that had come to nothing because they were scientific Congresses. From that Congress of practical men he hoped for useful work. He hoped ORGANISATION. 67 the Committee would do their best to procure a real union of spinners of Europe. If they accomplished that object they would merit the warmest thanks. Mr. John L. Tattersall : I rise to move the following reso- lution : — " That, subject to the approval of a majority of the Associations here represented, an International Committee be appointed to watch over the interests and to advise spinners' associa- tions as to action to protect their interests against any com- mon danger to their trade." Some interrogations were put by Messrs. F. A. Hargreaves and H. HiGSON regarding the composition and functions of the pro- posed International Committee. The Chairman : I think it is certainly the intention of the whole of the gentlemen who have sf)oken about the Committee, which is to be appointed to-day, that it shall be a Committee to attend to preliminary work. I believe, therefore, that we do not overstep the power which we have received from home if we elect such a Committee. For my own part I feel fully justified in doing so. M. Jean DE Hemptinne : In the name of the Belgian spinners, I strongly support the nomination of an International Committee, such as has just been proposed. In opening the meeting yesterday, Herr Syz reminded me that the motto of my country is : " Union is strength." I think that in view of the economic crisis through which we are passing, we all ought to unite, and by means of the International Committee which we shall form show to the whole world that we have decided to fight against "comers." It is difficult in the first Congress to examine thoroughly all the numerous and complex questions which present themselves. They must be studied seriously by the Committee, which will re- port in such a way as to allow of our taking such united action later on as will, I think, enable us to steer clear of the difficulties with which we have now to deal. Senhor Taveira (Portugal): You know, gentlemen, that I represent a very small country, where the cotton industry is con- ducted on a small scale, but the cotton crisis is just as acute there as it is in all other cotton-using countries. It is on these grounds that I entirely fall in with the idea of constituting an International Committee which shall prove to all 68 INTERNATIONAL COTTON CONGRESS. the world that the representatives of the cotton industry are united as one man to combat the unscrupulous gamblings which have so disastrously affected us. Herr Kuffler : In any case it will be a rather difficult matter to decide the way in which the votes are to be apportioned to the Committee. Were we to say from the beginning: Each country appoints one man who shall have as many votes as correspond to the number of spindles, then the English delegate with 44 millions would have the majority in the Committee. That, however, is certainly not the intention, for I think that a Committee composed under such conditions could scarcely achieve any useful end. Another mode must therefore be devised as to how the number of votes is to be distributed. Now that is a very difficult question. The proposal has been made that the number of votes should correspond to the number of bales spun, but in that case the gentlemen who are weavers would not get their proper rights, because they spin no bales of cotton. A way would therefore have to be found so that England should not, from the very outset, under all circumstances, always have the preponderance in the Committee. Some scheme must therefore be devised, let us say, for example, analogous to the German Constitu- tion, by which Prussia, in spite of her having the majority of inhabi- tants, does not possess the majority of votes in the Reichstag ; but a few more must always assist her to obtain a majority. I think a simi- lar proceeding must be adopted, otherwise the Committee will have to face, from the very beginning, the greatest difficulties. Baron Cantoni, M. Georges Motte, Mr. J. T. Dawson, and Mr. E. Travis also spoke in support of the resolution. The Chairman : The resolution of Mr. Tattersall, which has been read over to you, will be supplied to you in English, French, and German, in order that each one may know exactly what he is voting for. It has struck 1 2 o'clock ; we will adjourn for luncheon and recom- mence at 2. (In the interval the terms of Mr. Tattersall's resolution were written in English, French, and German, and a copy supplied to each delegate.) On the resumption after luncheon, the Chairman said : The opening of the debate hag been somewhat delayed because new ORGANISATION. 69 discussions have taken place respecting a resolution. Mr. Tatter- sall has now withdrawn his resolution of this morning in favour of a resolution brought in by Mr. Higson, chairman of the North and North-East Lancashire Cotton Spinners' and Manufacturers' Asso- ciation. This resolution will now be read to you by Herr Kuffler in the three languages, and voting will take place upon the same, as I take it for granted that after these elaborate preliminary de- liberations all will certainly be in a position to give a vote. Mr. Higson proposed the following resolution: — Resolved by this first International Congress of Master Cotton Spinners and Manufacturers, held at the Tonhalle, Zurich : — " That the Committee in charge of this Congress be appoin- ted to draw up a report of the proceedings of the Congress, and to take such steps as may be deemed necessary to estab- lish a permanent International Organisation to watch over the common interest of the industry, and to advise Master Cotton Spinners' and Manufacturers' Associations of the action to be taken to protect their interests against any common danger. The Committee to have power to add a delegate of any other nationality not already represented in the Congress. The establishment of such organisation is strongly recommended by this Congress." Mr. Higson said : This resolution will probably commend itself to the whole of this Congress, and will be acceptable to the whole of our associations. Mr. J. L. Tatters ALL : I have very great pleasure in second- ing the resolution. The Chairman : You have heard the resolution proposed, and I think that, after the lengthy proceedings leading up to it, every- one will now be in a position to form an opinion to enable him to vote on the resolution. I therefore propose that voting shall take place immediately on this resolution, provided no contrziry opinions be expressed on the part of gentlemen who may still desire a discussion on it ; but I think this resolution will no doubt be adopted unanimously. (The vote on the resolution was then taken.) The Chairman : I find that the resolution is carried unani- mously, and I have to express my great pleasure at this result The question now arises, whether we should resume the discussion on the subject of yesterday. I know, how- ever, that it is the wish of many of the gentlemen present to go. 70 INTERNATIONAL COTTON CONGRESS. at 4 o'clock, to Baden, in order to inspect the installations of Messrs. Brown, Boveri, and Co., Ltd., to which we were so kindly invited yesterday. Consequently, I should like to ask the assembly whether they wish to enter once more into a discussion to-day» or whether we shall adjourn in order to afford us the opportunity of going through the interesting works in Baden. (The Congress decided to adjourn until the following day at 9-15 a.m.) COTTON CORNERS. 71 FOURTH DAY'S PROCEEDINGS. Thursday^ May 26, igo^. M. GEORGES MOTTE in the chain M. G. MOTTE, on taking the chair, said : I thank you sincerely for the honour you have done to the country and to the Associa- tion which I irepresent by calHng upon me to preside at your de- bates. Unfortunately, I have not the gift of tongues, and I must speak to you in French — a language which is little known among you. I therefore claim all your indulgence, and rely upon the kindness of my colleagues in the chair to assist me to fulfil my task. Allow me to congratulate you on having proceeded yesterday to the nomination of an International Committee. It is, in my humble opinion, the most important vote of the Congress. You have created, by that vote, a bond of union and established a current of sympathy between the representatives of the different nations. You have in this way permitted them to proceed hand- in-hand for the defence of our common interests. You have at the same time done a salutary and meritorious work, for, by taking means to safeguard the existence of the great industry which you direct, you are also seeking to save from misery many thousands of workmen who live by it. You, there- fore, prove once more that you thoroughly understand the solid- arity which should exist between capital and labour. It behoves you now, gentlemen, to furnish your Committee with the elements of work which shall be the object of its deliberations. The sole aira of this Committee should be to deal with the g^ave questions which occupy us at this moment. I think I may say to you that the Committee will not fail in its duty. Herr Kuffler (Austria) announced that a letter had been re- ceived from the spinners of Poland, thanking the Congress for the invitation to attend, and regretting that as their Company Meet- ings were held in May they could not avail themselves of the opportunity. No one, the letter added, could deny the necessity 72 INTERNATIONAL COTTON CONGRESS. of international consideration of the unfavourable conditions under which the cotton industry labours as regards the supply of the raw material. Mr. Macalister (England) said he had been asked to move the following resolution, and as it spoke for itself he would do so with- out making a speech. The resolution was as follows : — " That this International Congress of Master Cotton Spinners and Manufacturers, having appointed a Committee for the purpose of taking steps for safeguarding the interests of the industry, and recognising the enormous tax the recent en- hancement of prices has imposed upon all users of cotton, requests this Committee to bring before the Associations here represented, the allied trades, the general public, and the Governments of the various European countries, the abso- lute necessity of increasing the supply of raw cotton, to enlist their sympathy and practical support in favour of all efforts to grow cotton wherever it can be cultivated with a prospect of success, as in the opinion of this Congress a great increase is essential to the preservation of the Cotton Industry, on which the public welfare of all European countries so largely depends. " The Congress also desires to place on record its cordial appre- ciation of the efforts of those Governments and Institutions which have already supported cotton-growing in their respec- tive Colonies." The resolution having been carried unanimously, MR. ATKINS, Secretary to the British Cotton-Growing Association, remarked that his Association would be much strengthened by the support of the Congress. He hoped they would have not good wishes alone, but that gentlemen present who had not already done so vrould put their hands in their pockets after having heard so much about the work that had been done. The work they had to do — on this point he was sure Herr Wilckens would bear him out — was very arduous, and no one who was not behind the scenes had any con- ception of it The work had to be done, however, and they were going to do it. M. C. Berger (France) : In the name of the Colonial Cotton Association of France, we agree completely with the conclusions of the report presented by Mr. Atkins — ^we adopt the same views, the same principles as he. Herr Wilckens (Germany) : Allow me also, in the name of the Committee for the Colonial Department, to express my warmest thanks for this resolution, which so thoroughly appreciates the work of the cotton-growing associations. I fully agree with COTTON CORNERS. 73 the previous speakers, M. Berger, of Paris, and Mr. Atkins, of the British Cotton-Growing Association ; and I should like to express at this point the wish that the hopes of Mr. Atkins may be fulfilled, viz., that all those interested in the cotton trade in all countries may continue to second our efforts towards the extension of cottong-growing, not only by good wishes, but, as has been stated, also by deeds — i.e.y financially. The discussion on cotton comers was resumed. M. C. Berger (France) : Last December I attended the mass meeting of the English cotton trade, which was held in Man- chester. I then saw the creation of those united efforts which v^ere to grapple with the crisis that had been causing havoc for some time. The English spinners unanimously decided on " short time." Having retumd to France, we communicated to our differ- ent associations the decision taken by the English, and we adopted the same system. "Short time" is the most efficacious remedy which can be used against "corners," as well as against the ex- cessive advances in prices of cotton which gambling produces. I therefore beg the International Committee appointed to occupy itself with this question — viz. : to recommend the different associations and countries to have recourse to " short time " as being the most efficacious remedy to apply against the cotton crisis. M. J. DE Hemptinne (Belgium) : I beg to second the proposal which has just been put forward by M. Berger. I am, like him, convinced that the most efficacious remedy to adopt against " cor- ners " against speculation in cotton, is " short time." We have already had proofs of its efficacy. If we had not made use of this means, we should have suffered a downright disaster in the cotton industry. It is through "short time" being adopted in different countries that we have been able to bring prices of cotton more or less relatively low. I therefore especially call the attention of the Congress to this question. The circumstances are difficult, that is true, but it will not be impossible to arrive at international " short time," bearing in mind the circumstances of the different countries. For we know that what can be done in one country does not always suit another. I am convinced that it is through adopting the policy of " short time" that we have been able to keep our heads above water. I think, for instance, that by the reduction of hours practised in England, they have been able to save 600,000 to 700,000 bales. 74 INTERNATIONAL COTTON CONGRESS. But for this we should have had a famine. Therefore, you, with myself, will thank the English cotton industry which has worked "short time," and thus saved the trade from disaster. Mr. Travis (England) : I have been very pleased to listen to the discussion on this subject. Now that we have formed a Com- mittee I do not think it should attempt too much. In -my opinion, the schemes of both Mr. Tattersall and Herr Kuffler are too large for a beginning. Herr Kuffler's plan is based on a very little but a very important word — the word " if." What I hope from this Com- mittee is that it will give us something that will be ready for imme- diate use when the occasion arises. Last December we were not in that position. Should the necessity arise in the future, I hope we shall be able to get " short time " going much quicker than we had it going this time. I am certain, as far as our trade in England is concerned, " short time " has been its salvation. If we had not beea on forty hours, the whole of the stocks in Liverpool would have been used, and we should have had a cotton famine. Half a loaf is better than no bread. We have it now instead of having eaten it all up at once. As for gambling or speculation, you never can eradicate it. No nation does without it. But I should like the Committee to devote their attention to means whereby the raw material shall be dissociated from all gambling transactions. The people who grow cotton and use it should determine the price, not the gamblers. The making of laws against gambling would be of no use unless they were universal. If there were a law in Eng- land against dealing in futures, the difficulty would be overcome by managing the business in New York or some other place. I cannot see any difference between the legitimate and the illegiti- mate speculation mentioned by my friend Mr. Tattersall. I do not see any difference between buying a thousand bales to spin and a thousand bales to sell Mr. Macara : I do not think the promoters of this Congress had the slightest idea that anything, as regards " short time," would be attempted in regard to the present season, but, as Mr. Travis- said, we ought to prepare the machinery for next season. I have no hesitation in saying that if we had had that machinery this season, and had put it in operation, so large is the quantity of cotton used in England and on the Continent of Europe, we should have broken the comer in less than a month, and taught a lasting lessors to all who contemplated such an undertaking again. No one recog- COTTON CORNERS. 75 nises more than I do the extreme difficulty of getting uniform action in regard to an industry like cotton. Spinners even in one town can never all be in the same position. What I do say and what we have established in the English Masters' Federation is^ that those who shut down should see those who run their mills paying into a fund which will be available for combating the diffi- culties of the trade. Those who pay in this way have the satisfac- tion of knowing that they are doing their share to assist in the successful conduct of one of the greatest industries in the world. Mr. J. L. Tattersall : May I say, on behalf of the English delegates, that we do not wish to talk of " short time," and I hope we shall not discuss " short time " any more ? Mr. Macara : I have made it clear, I hope, that we had not the slightest intention of doing anything about " short time " this season. Nothing could be done this season, but we should be prepared with the machinery, because another season will be upon us very soon. Mr. J. R. Byrom (England): As the mover of the resolution at the meeting in December, whch has resulted not only in the adoption of "short time" in Great Britain, but in some other countries, and ultimately resulted in this Congress, I feel extremely gratified with these discussions. I look forward to the business we have transac- ted resulting in benefits to all mankind. The whole world is in- terested in the production of cotton goods for their constant use. There is no doubt in my mind that the most practical way of meeting these corners is combined action for the reduction of consumption. If we have not sufficient cotton to keep the mills on full time all the year, we must regulate the output, and if that is done the whole world over, it will be a very small thing in the long run, because whenever it becomes known by the opera- tors in futures, and so on, that the moment they attempt to rush cotton to an extreme price there is an organisation existing that can combat their efforts, they will be very slow to undertake such operations. I am very pleased to be present at this first International Congress, and I hope that the business we have transacted will be seen to be of very great importance. Baron Cantoni : I feel sure we are much indebted to the English people, and to the people of other countries where the cotton industry is followed, for the sacrifices they have made for 76 INTERNATIONAL COTTON CONGRESS. the general benefit. I feel the more obliged to say this becaus'r I am sorry to say the passing of the resolution regarding short time was not possible in Italy. There, reductions have been made by spinning finer counts or by stopping some departments ot the mill, but the general rule has not been adopted. I wish to declare that the sympathies of the delegates here to-day are with short time, and that we hope, when, by a new law, night work will have been entirely suppressed and equal conditions are adopted fjy all spinners, we shall be able to join with those who are more favoured and have made more progress. DiREKTOR Walter : The question of the reduction of work has now been ventilated in Germany for more than a decade ; but we have not yet succeeded in inducing our cotton spinners to adopt combined action in this respect. The conditions in Ger- many are of such a manifold nature — the centres of our cotton in- dustry are all so far apart, and we still continue to be affected in some measure by the former disunion of Germany. The con- ditions under which cotton-spinning has grown up within the various States have been very different from one an- other, and they are still so. I only mention this reason so that you may understand whence it comes that the introduction of combined measures with us does not prove so easy. Besides this, it is to be borne in mind that in England those engaged in the cotton industry have been working on a com- mon footing for a much longer period than those in Germany. In England the introduction of short time is more easily brought about ; the organisations to this end have been in existence for some considerable time. We must go on working; we must first of all persuade our cotton spinners, who partly hold back to-day, to participate in the unions of their smaller districts, to induce them to take common action, which affects the whole of their trade, the whole of their commercial activity. For this reason we refrain from enlarging upon this question, which would, there- fore, not be ripe for discussion until next season. Whether by that time we shall have succeeded in attaining what has been attained in England, at present I doubt very much. It is just as certain, however, that this limitation of production is un- doubtedly the only and most effectual means of permanently preventing an excessive forcing-up of prices in the cotton mar- COTTON CORNERS. IT kets, and it would be desirable that we too in Germany should be able to contribute by applying this remedy. Respecting manipulations in futures, which subject also lies before us for discussion, I should like to mention that I am en- tirely of Mr. Travis's opinion. Dealings in futures are not to be avoided ; they are, on the contrary, even good, only the excesses must be avoided ; only that must be got rid of which originates from excessive speculation from outsiders. And at this point I would beg the gentlemen of the Committee to endeavour to bring about that the exchanges shall veto outside speculation, suppress dealers in cotton outside of the exchange, so that dealings in futures shall remain what they ought to be — the means of easily manipulating the capital which is invested and engaged in the cotton trade. We must leave in the hands of our cotton trade the market in futures, because we need it ourselves for trading pur- poses. We must also have what we might call a reservoir, in which to store up the extra supply in times of superabundance of cotton, and out of which cotton could be more easily distributed in times of scarcity. From this point of view, dealings in futures are justifiable, and, just as Mr, Travis says, it is impossible to decide where the limits lie between justifiable and unjustifiable speculation, between a legitimate and an illegitimate transaction, as far as dealings in the speculative market are concerned. I shall have the honour of immediately submitting to you a resolution. Mr. J. B. Tattersall (England) : Permit me first, on behalf of the representatives from England, to offer our thanks to our Con- tinental brethren for the resolution they have passed and for their appreciation of the fact that we have done such an amount of " short time " and saved the situation for the time being. I should like to impress upon this Congress that " short time " is no remedy, but only an alleviation for the time being, and that it is urgent that we seek something more in the interests of the cotton trade than the continuation this year or next year of "short time." I fully appreciate what other speakers have said about the new organisa- tion. If it had been in operation during the early months of the present year an effective method might have been found in shut- ting down for three weeks. Then, I believe, the cotton comer would in that case have been over. Neither cotton comers nor anything else can be properly managed without organisation. Some of the 78 INTERNATIONAL COTTON CONGRESS. difficulties that stand in the way of effective organisation are to be found in the fact that amongst us all, even the best of us, there is a great deal of human nature. To put it another way, are we not too selfish, too fond of considering our own position? The difficulty of organisation in all countries has been because there are certain sections of people who have never realised that their best interest is not to isolate themselves from their fellow men. Another cause is that so many people seek to reap where they have not sown, ever seeking to take advantage of the energy and enterprise of those who take a higher conception of their duties than they do themselves. I apprehend that no such feelings exist in a Congress of this nature. What, then, is this organisation, that we have established, to do ? To my mind, not only should it grapple with this cotton comer, if practicable, but it should do a great and important work by gathering and disseminating information among the various nationalities on a multitude of things. Would it not be a great advantage if we knew the rates of carriage by sea and rail from the cotton fields to the various countries? Also the various methods of taxing our industry? The higher civilisation of the day is making greater and greater demands upon us. We in Great Britain have been taxed during the last ten years to the extent of nearly five per cent, on our capital. At the present time we are having demands made upon us for free education, bands playing in the parks, and even the feeding of the children of those who will not look after their offspring. While I recognise the immense advantage of education and the proper recreation of the people, I also recog- nise that it is possible to put on the back of our industry a burden heavier than it can possibly bear. There is something here for a Congress of this kind to deal with. As to cotton comers, having given the subject a considerable amount of consideration, and whilst I recognise that the principles under- lying the proposals that Mr. J. L. Tattersall and Herr Kuffler make are admirable, I am bound to confess that to my mind their proposals, like universal peace, are unattainable. Would it not be grand if a tithe of the money spent throughout Europe for the purpose of destroying life could be applied for the purpose of promoting peace and the development of industry ? I have come to the conclusion that the only absolutely practical method of COTTON CORNERS. 7^ "destroying these cotton corners is an increase of the growth of cotton. Not only shoidd the growth be increased, but the places in which it is grown should be widely extended. The wider the regions in which it is grown, the greater the difficulty of the financiers who try to corner it. I should like my Continental friends to note that while the Exchanges at Liverpool, Havre, and Manchester, and others, know exactly the relative value of the different classes of Indian cotton and American cotton, it is a fact that whilst the American cotton has gone up something like 3d. per lb., Indian cotton has only risen id. This is simply because Indian cotton cannot be tendered against "futures." If Indian cotton could have been tendered against "futures," especially to those who buy it for the purpose of speculation only, then Indian cotton would have risen in proportion to American. This points to the conclusion that the wider you can develop cotton in the cotton-growing countries and the more difficult it will be for any section of financiers to corner cotton as they have done in the past. What we should do is to approach our Governments. It is their duty to lay railways which will make access to the seaboard from cotton-growing districts easy and cheap. If this Congress can accomplish that, it will have done a great work, and something to realise, from a commercial point of view, the poet's dream : — " The Parliament of man, the Federation of the world." Mr. J. L. TattersalL: I am very glad to notice Mr. J. B. Tattersall's point. I hope we shall all remember that " East Indian" cotton was only raised id. when " American " cotton went up 3d. The reason, of course, being that " East Indian " is not held against " futures." From the discussion, it is evident that many of us are agreed that some speculation, great or small, is necessary to our trade ; we practically admit that the " futures '* market is necessary, because, as Baron Cantoni has made clear, if when buying cotton we are not prepared to put it into stock, with- out selling " futures," we are putting the onus of that specula- tion on to other persons : the position is, we want a " futures " mar- ket to take the risk instead of ourselves. Therefore, under this system, there remains but one remedy that we can effectually use when speculators attempt to " hold up " the market, and I come to it with great reluctance, because, in my opinion, it is a remedy for which there ought to be no need. When the speculation in the *' futures " market is so violent as to create tremendous fluctuations 80 INTERNATIONAL COTTON CONGRESS. and exorbitant prices, then we have the remedy of lessened con- sumption of cotton. In Lancashire, when we have any disturbance over which personally we have no control, such as a strike or lock-out, we are generally empowered by our contracts to lessen our deliveries of cloth and yam. I suggest, as an idea for the members of the Congress to consider, the following clause, to be added to every contract for the sale of yam and cloth : — " In case the International Committee shall decide that a lessened consumption of cotton is necessary for the common welfare of the trade, this contract shall be subject to such reduction, in the proportion of the lessened consumption." With that clause in your contract, you have absolute power to run " short time " when it is felt to be necessary. Herr Prowe (Russia) asked if it would be worth consideration to suggest the possibility of guarding against over-production by prohibiting the erection of new spinning mills. Herr Kuffler : I have a few words to say in answer to Mr. Travis, and in respect of going short time in order to fight cotton comers. Of course there is no doubt whatever that by using less cotton when there is less cotton in the world you can defy anybody to send the price up. But you must understand that this is a question that has to be dealt with differently in different countries. We have seen that it is scarcely possible to bring about a short- time movement in all countries alike. Any such movement has only a chance of success if the interests are the same. Nobody can contend that it is in the interests of a man who has a supply of cotton for six or eight months, and is able to sell his yam at a profit on the price of the cotton as he has got it, to stop his mill. Moreover, the labour question is very different in different coun- tries. If we want to do something against cotton speculation we ought to tackle the question where we have the power. I wish to mention a suggestion that a delegate has made to me. Going short time should not be organised by the organisation of various countries, but individually. Take a man in England and a man in Switzerland who have bought no cotton beforehand and have not sold yam. If prices are going up both have the same interest to go on short time, and they do it. But a man having cotton and another man having no cotton are not alike, and will not follow the same line of action. Say there are 100,000,000 spindles in the world. If 60,000,000 or 70,000,000 fall into line, wherever they COTTON CORNERS. 81 are, then short time could be effected. It may be, for instance, that two-thirds of the mills in Germany are well provided with cotton for the season, and they think it is against their interest to go on short time, but the other third is not provided with cotton, and the interest of that third is the interest of mills in any other country not provided with cotton. I do not know whether I have made myself clear. The interest of 1,000,000 spindles in Germany may be the same as the interest of spinners in England, France, and Switzerland, and the rest of the German spindles may have a different interest. It is not a matter whether they are German or French or Swiss spindles. If you can get enough cotton-using spindles in the world to fall into line to make the movement effective, that is the only thing to save enough cotton to break the corner. I think that would have a much better effect than to try to get the countries together. On these lines an international short-time movement could be arrived at when it is necessary. I think this is a very effective method of dealing with the question, but it is one which will take a long time and much organisation. I stick to my opinion that if you can hold a certain amount of cotton and deal with it as you like, you can break any cotton comer in two days, while it will take you half a year to break it otherwise. I quite ag^ee that schemes of this kind cannot be adopted at once. I think it is worth attention (what real danger can come of it ?) that the cotton spinners, repre- senting the whole industry of the world, should have power in the market. It may be that my idea is not theoretically as right as that of those who advocate short time, but it is a practical idea. If you have cotton enough you rule the market. If you have not you cannot rule the market. It is no use saying there ought to be no speculation. There is and will be speculation, as all the gentle- men have told you. We do not mind speculation, we want to have a hand in it. We want not to be at the mercy of speculators. We can only get a hand in it if we acquire an interest in the market. As has been said by Baron Cantoni, as long as we want people to speculate in order to take cotton from us, we have no right to speak against speculation. Mr. Tattersall has given you an example of East Indian cotton. There is no hedging East Indian cotton. There may be a man who will sell American futures against it, but it is not in the usual way. The users of East Indian cotton buy cotton when it comes in just as American 82 INTERNATIONAL COTTON CONGRESS. cotton is brought to market within two or three months and spun during twelve months. It is not covered with futures, and what is the effect ? The fluctuations are less. Of course, if there is a bad crop in East India the prices go up. That is fair and right If there is a good crop prices go down. You never heard that East Indian cotton went up a halfpenny one day and was down a halfpenny the next. That is the thing we want to fight against. Mark this, that the system of futures which takes the risk from our shoulders, and puts it on other shoulders, brings about fluctua- tions. The system of buying the cotton for the whole year's supply does not bring about fluctuations. It has been said that if there is somebody who wants to sell, there must be somebody who wants to buy, but that is not true. If some speculator goes on selling, there is nobody who dares to buy, and that brings about fluctuations. The only proper way is to go back to the old method — the spinner to buy from the planter, or the factor, such a supply of cotton as will allow him to guard against any specula- tor. As the spinner cannot do that, I say combine and divide the risk. I feel quite sure that if one-third or more of the cotton crop is bought in such a way by the spinners there will be no fluctua- tions of this kind, just exactly as it is in East Indian cotton. The fluctuations occur because the spinner does not want to speculate. He hedges his cotton, or he has somebody to hedge it for him, and he wants to buy from day to day, from month to month. That means giving up all influence over the market. If a spinner wants to counteract fluctuations he must have an influence in the mar- ket, and if he wants an influence he must hold cotton. In con- clusion, I would say try by all means to bring about international short time if it is wanted. It is not the supply of cotton goods for the world that is too small : it is only the supply of cotton for the mills. The last customer — the buyer of cloths^ — can wait. There- fore short time is a very good thing if it can be arranged inter- nationally. But then, and in this respect, I differ from Mr. Tatter- sall, this is a remedy which will take a long time, A quicker remedy will be getting an influence in the market and holding cotton in combination. Baron Cantoni : May I be allowed to say that we found this year a difficulty of combining the action of different countries on account of the different systems at work ? The English spinners as a rule either buy spot cotton or cover with futures, whatever COTTON CORNERS. 83 extra cotton they have more than their contracts. Continental firms expose themselves to the consequences of having cotton on hand. I do not think that when we are speaking against specula- tion here we are quite fair. In one of the papers we had advanced the view that action might be taken to keep anybody from selling what he has not got. If nobody has a right to sell without having possession we could not find a way of hedging our stocks of yams and manufactured goods with futures. It seems to me that when we want to hedge our own stock of cotton or yarn by selling futures, we are trying to stop the speculative position in which we are to save ourselves by putting on somebody else's shoulders the consequence of it, so as to unload our own. Therefore, the speculator for this negotiation of futures becomes an absolute necessity, and we cannot complain of his existence and of his taking profit of the situation we have put in him. Practically as the large and best raw cotton firms have no reason to run a risk that we will not run ourselves through the system of futures, all the people really interested in the trade have passed by their own will the control of the whole market into the hands of the gambling speculator, who is the only man willing to run the risk. Mr. J. B. Tattersall has already men- tioned, it being the most important evidence against the system of futures, that the East Indian cotton market, with a small crop, has suffered fluctuations not to be compared with those that have troubled the users of American cotton. I may call the attention of the Congress to the fact that although the Egyptian cotton has a much smaller market than Indian cotton, and the crop was splendid, fluctuations have been perfectly wild on account of their being negotiations in futures. Will you, gentlemen, consider if excess of prudence has not turned into imprudence? It may be of advantage to the gentlemen who represent the most important cotton industry of the world to study the systems that are adopted on the Continent, and to see if a step which might look imprudent to them would not instead be prudent. Mr. J. B. Tattersall : Would you permit me to say that I think Herr Kuffler is raising more difficulties than the necessities call for ? I would like to give you an example locally. During the present season a company I am connected with bought cotton for a con- 84 INTERNATIONAL COTTON CONGRESS. siderable length of time ahead for the purpose of using it. Specu- lation ran the cotton up. We said, " Very well. If you think cot- ton is worth such an amount of money we will send it back to Liverpool and go on " short time " ; — and we did. Herr a. Bourcart (Alsace) : Permit me to say a few words. Up to the present, we have obtained a definite result — the appoint- ment of a working International Committee, to occupy itself with the study of all the questions which may be put now or later on. You have therefore given your confidence to a working Com- mittee. To-day we can take no steps, especially coercive measures, as regards " short time," or other matters. Hence it is good, I think, to remain satisfied with what we have decided upon ; that is to say, to give our confidence to the working Committee. I do not say by this that we shall furnish it with money — but let us put ques- tions and submit ideas to it. It will draw up a report. We shall be able to come to a decision which will bear fruit. As regards the Congress gathered together at this moment, it has done all it could do. That is my opinion. The Chairman : The following is a proposal I have to make : It is that, after having voted on the resolutions that we have to take at this moment, we shall officially close the Congress, whilst continuing in it semi-officially. DiREKTOR Walter (Germany) proposed : — " That this first In^ ternational Congress of Master Cotton Spinners and Manufac- turers, having considered the question of speculation in cotton futures, requests the Committee to bring before the notice of the Cotton Exchanges of New York, New Orleans, Liverpool, and Alexandria the great injury done to the cotton industry by the enormous speculations, and urges such Exchanges to consider what means can be adopted to prevent persons who have no interest in the trade, either as growers, merchants, spinners, or manufacturers, from operating in the market to the detriment of the whole industry, and further invites the Committee to bring the matter before their respective Governments and to take all other steps they may consider necessary for dealing with this important question." Mr. J. L. Tattersall, seconding the motion, said : First of all we send a pilot message to these Exchanges calling attention to a great evil and asking them to do something. Then we bring COTTON CORNERS. 85 the matter in the same way before every Government here repre- sented and the Government of the United States as well. Then our Committee considers what other steps in any way necessary shall be taken. No other steps can be taken till some other Con- gress approves. The motion was carried unanimously. The further consideration of M. C. Berger's suggestion was then continued. The Chairman : Before submitting the resolution to the assembly, it is advisable to define clearly the extent of the vote you are about to take. It is certain that we have no authority to decide on the question of " short time " or any other measure. It is a desire to which we wish to give expression, in order that the Committee shall take one of the measures suitable to safeguard the situation. Other desires have been expressed in the last few days. The Committee like- wise will take note thereof. Under these conditions, there can be no hesitation in voting for such a resolution. Whilst " short time " defends the cotton industry, and prevents the over consumption of cotton, it also prevents the over production of yam. After some further discussion, M. C. Berger said : We re- quest the International Committee which has just been elected to kindly put on the order of the day the study of this principle : that the adoption of " short time " is the most efficacious weapon for fighting against speculation, and for preventing any excessive rise which might be forced upon us by speculators, who are, in most cases, outside the cotton trade. Our intention, in expressing the de- sire to put this resolution to the vote, was not to force its adop- tion immediately, but to suggest an idea which, I think, may be profitable to the industry, and to all nations. We can, later on, discuss the matter together, after the General Committee has studied the question, and we can give our sanction to a measure favourable to all nations. The Chairman : You request that the Committee shall study the question? M. C. Berger : Yes, certainly. The resolution was then withdrawn, and the further con- sideration of the question referred to the International Committee. 86 INTERNATIONAL COTTON CONGRESS. The Chairman : A request has at this moment been made to me by a few members of the Congress. I submit it to you : — As several members of the Congress have to return home this evening, and others are fatigued, the question is put whether we cannot close the Congress to-day. We might still proceed with debates until two o'clock. I wish to inform you of this, in order not to bring the discussion to a sudden close. It was ultimately decided to hold the closing meeting of the Congress on the Rigi the day following. CLOSING PROCEEDINGS. 87 CLOSING DAY'S PROCEEDINGS. Friday, May 2y, IQ04.. Herr JOHN SYZ in the chair. The Conference met on the summit of the Rigi, the journey from Ziirich having been made during the morning. Herr J. Syz, the President, occupied the chair, and in opening the pro- ceedings thanked the Congress for having come to Switzerland and for giving earnest attention to the very important matters that had been placed before them. He thought the thanks of the Congress should be given to Mr. Macara, Herr Gross, and M. Motte for conducting the business of the Congress on successive days. He added : You will allow me to say a few words about your Committee meetings. The International Committee that was appoin- ted was good enough to propose that I should be its president. That was a great and, I think, an undue honour, and so I persuaded them, after some pains, as the work will have to be done in Eng- land, where the trade interests are more intense than they are in Switzerland, to appoint Mr. Macara. That gentleman was very reluctant, but he yielded to pressure. We were all unanimous on that point. It was thought best by the Committee that I should be the vice-president, and that post I accepted. Then it was re- solved that M. Motte and Herr Gross should be honorary treasurers, and that the accounts should be examined by a firm of chartered accountants in Manchester, and Mr. John Smethurst was appointed secretary to the Committee. Mr. Macara : I am exceedingly indebted to you for your explanations. I thought the matter might have been met by my acting as chairman of the Executive Committee, but it seems that that office is not understood on the Continent. So I waived my objection and consented to take the presidency. I feel very strongly that we have begun well, and I should like the good work to continue. It is usually a part of the business of a Congress to decide where the next meetings shall be held, and it has been sug- gested by a number of gentlemen that as England and Switzerland have jointly convened the Congress, and as the first Congress has been held in the smaller country, the next should be in England, the largest cotton-using country, the place being Manchester. I 88 INTERNATIONAL COTTON CONGRESS. think that is the best course, and I beg to propose it and to ask Mr. Higson to second it. Mr. Higson : I second it gladly, but I would rather come to see you than you should come to see us, because there is scarcely a possibility of your enjoying yourselves in Manchester. However, we shall do* our best, and I think the environments of Manchester will have some attractions for you. I trust that your visit to us will be as helpful and instructive as our visit to you has been. It is very appropriate, I think, that after discussions so pleasing, so harmonious, so elevating, we should climb to this exalted spot to give the angels an opportunity of recording the very amicable arrangements we have made. I am delighted with, and hope to keep up, the very friendly relationships with the gentlemen I have had the pleasure of meeting on this very auspicious occasion. And that is the feeling of us all. Eventually it was decided that no vote should be taken, and that the calling of the next Congress should be left in the hands of the Committee. Before the Congress separated, Herr Langen (Germany) pro- posed that a special vote of thanks be given to Mr. Macara for being chief promoter of the Congress, for bringing it to Switzer- land, and for accepting the presidency of the Committee. The motion was passed with acclamation, and the proceedings of the Congress then closed. MINUTES First International Congress of Delegated Representa- tives OF Master Cotton Spinners' and Manufacturers' Associations, held at the Tonhalle, Zurich. On the motion of Mr. C. W. Macara, seconded by M. Georges MoTTE, Herr John Syz was appointed to preside over the opening meeting. Herr Syz took the chair, and in suitable terms welcomed the delegates to the first International Congress of Cotton Spinners and Manufacturers, and thanked them for the honour conferred upon him. Resolved, that all the delegates present should have the right to vote. On the motion of Director Walter, seconded by Herr C. Beckmann, the following Officials and Committee of Control were appointed after Herr Syz had explained the duties of the Committee : — Herr John Syz, President of Congress. Mr. C. W. Macara, England, Vice-President. Herr Ferd. Gross, Germany, ,, M. Georges Motte, France, ,, The above, together with the following, to constitute the Committee of Control : — M. Jean de Hemptinne, Belgium. Baron Costanzo Cantoni, Italy. Herr Arthur Kuffler, Austria. Senhor H. P. Taveira, Portugal. Herr Rudolph Prowe, Russia. Herr Syz then, with the approval of the Congress, requested that each Vice-President should in turn relieve him of the duty of presiding. Resolved, that on the following day the Congress should consider the question of " Increase of Cotton Supply," Mr. C. W. Macara to preside. The meeting then terminated at 12-15 p.m. Confirmed May 24th, 1904, C. W. MACARA. 90 INTERNATIONAL COTTON CONGRESS. SECOND DAY'S PROCEEDINGS. Tziesday, May 24., igo^. Mr. C. W. MACARA in the chair. The minutes of the previous day's meeting were read and confirmed. Mr. Macara thanked the Congress for appointing him a Vice-President, and referred to the necessity for international combination in the common interest of the cotton industry. Mr. J. C. Atkins, Secretary of the British Cotton-Growing Association, then read a paper on *' The Increase of Cotton Supply." After the reading of the paper, Baron Cantoni asked the Congress to join with him in the expression of a hearty vote of thanks to Mr. Atkins, and of sympathy with the aims of the British Cotton-Growing Association. This was carried with acclamation. Herr Wilckens, Secretary of the German Cotton-Growing Association, read a paper on the same subject, and he also received the thanks of the Congress. A paper by Director Stark, of Chemnitz, on "The Importance of Cotton in the World's Commerce and Industry" was, at his request, taken as read. Messrs. Taveira (Portugal), Berger (France), Cantoni (Italy), and Prowe (Russia) gave reports on the endeavours of their respec- tive countries regarding the increase ot cotton supply, and M. J. DE Hemptinne (Belgium) reported on the work performed in the Congo. On the motion of Herr Kuffler, Vice-President of the Austrian Spinners' Association, a cordial vote of thanks was accorded to the gentlemen who had contributed to the subject under discussion. Mr. Henry Higson, President of the North and North-East Lancashire Cotton Spinners and Manufacturers' Association, spoke on the work of the British Cotton-Growing Association, and stated that the operatives as well as the employers were contributing liberally to the funds of the Association. Mr. S. Smethurst, General Manager of the Federation of Master Cotton Spinners' Associations, referred to the necessity of working internationally in this matter, and expressed the hope that the efforts of the various Cotton-Growing Associations would be continued. Mr. H. W. Macalister, Federation of Master Cotton Spinners' Associations, also spoke, and the principle of the following resolu- MINUTES. 91 tion was unanimously adopted, the actual terms of the resolution to be afterwards drafted by the Committee of Control : — " That this International Congress of Master Cotton Spinners and Manufacturers, being convinced of the absolute necessity for an increase in the supply of raw material, strongly urges the various nationalities represented in the Congress to enlist the sympathies of their respective Governments and dependent industries in this question, and in all other ways to endeavour to obtain such increase, not only in the interest of the industry itself, but also of the general public." The meeting then adjourned for lunch. On the resumption after lunch, Mr. John L. Tattersall, Federation of Master Cotton Spinners' Associations, read a paper on ** Cotton Corners and their Prevention." Herr Arthur Kuffler, Austrian Spinners' Association, delivered an address on the same subject, and contended for the formation of an International Agency in the interests of the spinners of the world, and also as to the necessity for obtaining accurate information as to the crops, &c. The discussion was continued by Director Stark (Chemnitz), Herr H. Wunderly-de Muralt (Switzerland), Director Muller (Germany), Herr Hanns Haebler (Austria), Herr Fritz Waern- dorfer (Austria), Baron Cantoni (Italy), and at 4-30 the consideration of the subject was adjourned until the following morning at 9-15 a.m., when Herr Ferd. Gross (Germany), would preside. Confirmed May 25th, 1904, FERD. GROSS. 92 INTERNATIONAL COTTON CONGRESS. .THIRD DAY'S PROCEEDINGS. Wednesday, May 2§y igo^.. Herr FERD. GROSS (Germany) in the chair. Herr Gross thanked the Congress for appointing him a Vice- President, and appreciated it as a compliment to his country rather than to him personally. The German Associations could not at present pledge themselves to any definite resolutions, but were at the same time anxious to join in any scheme for the purpose of international combination. The minutes of previous day's meeting were read and confirmed. M. Georges Motte said that the one positive result of the Congress could only be the formation of an international organisa- tion which would have a deterrent effect on speculation. The Chairman then called on Mr. Macara, who gave his paper on ** Organisation," which he amplified. After the reading of the paper, it was decided to proceed with the discussion on *' Organisation," and then to return to the question of " Cotton Comers " in the afternoon or the morning following. Director Walter felt that the discussion of the various subjects might with advantage be continued, but he said that the first step to take should be the formation of an International Committee, in order to show to the world that as spinners and manufacturers they were determined to present a united front. Mr. J. R. Byrom and Herr Waerndorfer thought before the Committee was appointed its duties should be defined. Herr Wunderly-de Muralt thought the work ot the Committee would be in the first place to ascertain the views of English and Continental spinners and manufacturers. Mr. J. L. Tattersall then moved the following resolution: — *' That, subject to the approval of a majority of the Associations here represented, an International Committee be appointed to watch over the interests and to advise Spinners' Associations as to action to protect their interests against any common danger to their trade." A discussion then ensued, in which the following took part : — Mr. F. A. Hargreaves, Baron Cantoni, Mr. H. Higson, Mr. E. Travis, M. G. Motte, Herr Kuffler, M. de Hemptinne, and Mr. J. T. Dawson, after which the meeting adjourned for lunch. In the interval the terms of Mr. Tattersall's resolution were written in English, French, and German, and a copy supplied to each delegate. MINUTES. 93 After lunch the Chairman announced that Mr. Tattersall had agreed to withdraw his resolution in favour of the following reso- lution by Mr. Higson, which he, Mr. Tattersall, seconded, and which was unanimously adopted : — Resolved by this first International Congress of Master Cotton Spinners and Manufacturers, held at the Tonhalle, Zurich: — " That the Committee in charge of this Congress be appointed to draw up a report of the proceedings of the Congress, and to take such steps as may be deemed necessary to establish a permanent International Organisation to watch over the common interest of the industry, and to advise Master Cotton Spinners' and Manufacturers' Associa- tions of the action to be taken to protect their interests against any common danger. The Committee to have power to add a delegate of any other nationality not already represented in the Congress. The establish- ment of such organisation is strongly recommended by this Congress." The Chairman then asked if the Congress wished to renew the discussion on '* Cotton Corners," or to adjourn till the following day. It was decided to adjourn until the following morning, at 9-15, and then to take up the discussion on "Cotton Corners," under the chairmanship of M. Georges Motte. Confirmed May 26th, 1904, GEORGES MOTTE. 94 INTERNATIONAL COTTON CONGRESS. FOURTH DAY'S PROCEEDINGS. Thursday^ May 26, igo^, M. GEORGES MOTTE in the chair. M. MoTTE thanked the Congress for the great honour done to him and the country he represented in appointing him a Vice- President, and in asking him to preside that day. He congratulated the Congress on the resolution that was arrived at yesterday. The resolution was a bond of union between the nations represented at the Congress. The minutes of previous day's proceedings were read and ■confirmed. Herr Kuffler then read the following communication sent by the Exchange of Lodz, expressing regret at inability to send a .representative, and sympathy with the object of the Congress : — *♦ Committee of the Exchange of Lodz. " We duly received your favour of 2nd inst., and beg to thank you most heartily for the invitation you were good enough to extend to us to assist at the first International Congress of Cotton Spinners and Manufacturers. We think that no one can deny the necessity of an international consideration of the un- favourable condition under which the whole cotton industry labours as regards the supply ot the raw material, as well as of all other questions when the interests of the cotton spinners and manufacturers of all countries are the same. The representatives of the cotton industry of this district would have been only too pleased to avail themselves of the opportunity of exchanging opinions with the delegates of other nations. " Unfortunately the date of the Congress is such that the gentlemen to whom the interests of the industry of this district could be entrusted are not able to go to Zurich, as most Companies here have their general meetings in the month of May, which makes it impos- sible for our prominent spinners to leave the city. *' The Exchange Committee therefore beg to regret that the industry of this district must remain without representation, and hope that another month will be chosen for the next Cotton Conference." MINUTES. 95 The following resolution, moved by Mr. H. W. Macalister, seconded by M. C. Berger, and supported by Herr Wunderly- DE Muralt, was carried unanimously : — ** That this International Congress of Master Cotton Spinners and Manufacturers, having appointed a Committee for the purpose of taking steps for safe- guarding the interests of the industry, and recognising the enormous tax the recent enhancement of prices has imposed upon all users of cotton, requests this Committee to bring before the Associations here represented, the allied trades, the general public, and the Governments of the various European countries the absolute necessity of increasing the supply of raw cotton, to enlist their sympathy and practical support in favour of all efforts to grow cotton wherever it can be cultivated with a prospect of success, as in the opinion of this Congress a great increase is essential to the preservation of the Cotton Industry, on which the public welfare of all European countries so largely depends. ** The Congress also desires to place on record its cordial appreciation of the efforts of those Governments and Institutions which have already supported Cotton- Growing in their respective Colonies." Mr. J. C. Atkins and Herr Wilckens then thanked the Congress, on behalf of all Cotton-Growing Associations, for passing the resolution, and also for the way the various papers on Cotton- Growing had been received by the Congress. On the resumption of the discussion on cotton corners, M. Berger said that having been present at the meeting of the English Cotton Trade, held in Manchester last December, when short time in England was decided upon, he had laid the matter before his Committee, and they followed suit with England, because they considered that short time was the best way of dealing with the situation. M. Jean de Hemptinne associated himself with the views of M. Berger. He believed that short time in England, France, Belgium, and other countries had saved the trade from disaster. It was not impossible to arrive at an international combination to fight corners. He expressed his thanks to England for having first taken the matter up. Mr. E. Travis hoped that any International Committee would not at first attempt too much. The schemes of Mr. J. L. Tattersall and Herr Kuffler were, in his opinion, too big. The Committee should, however, prepare the machinery for future combined action when necessary. Any restrictive legislation for dealing with corners should be international if it was to be effective. Mr. C. W. Macara felt with Mr. Travis that the machinery should be got ready for any emergency. Mr. J. R. Byrom hoped and believed that the resolutions passed by the Congress would be ultimately for the benefit of mankind. 96 INTERNATIONAL COTTON CONGRESS, Baron Cantoni said they were all indebted to England and other countries for sacrifices made in adopting short time. Director Walter, speaking on the question of cotton corners, felt that the futures market was not in itself a bad thing. It was not the regular members of the Exchanges who were their enemies, but the outsiders. Mr. J. B. Tattersall said that short time was no remedy. He felt that some of the difficulties of effective organisation arose from the fact that human nature was as a rule selfish. The Com- mittee that had been appointed had plenty of work to do in the way of gathering and disseminating information. The views of Mr. J. L. Tattersall and Herr Kuffler, although admirable, were, he thought, unattainable. The remedy was an increase of cotton supply. Mr. J. L. Tattersall suggested, as an idea for the members of the Congress to consider, the following clause, to be added to every contract for the sale of yarn and cloth : — '* In case the International Committee should decide that a lessened con- sumption of cotton is necessary for the common welfare of the trade, this contract shall be subject to such reduction, in the pro- portion of the lessened consumption." He also emphasised a previous speaker's remark, that East Indian cotton had not been subject to the same fluctuations as American cotton because it was not held to be tendered against " Futures." The discussion was continued by Herr Kuffler, Herr Prowe, Mr. Macalister, and Herr Bourcart, and the following resolution by Herr Walter was then unanimously adopted : — "That this first International Congress of Master Cotton Spinners and Manufacturers, having considered the question of speculation in Cotton Futures, requests the Committee to bring before the notice of the Cotton Exchanges of New York, New Orleans, Liverpool, and Alexandria the great injury done to the Cotton Industry by the enormous specula- tions, and urges such Exchanges to consider what means can be adopted to prevent persons who have no interest in the trade, either as growers, merchants, spinners, or manufacturers, from operating in the market to the detriment of the whole industry, and further invites the Committee to bring the matter before the respective Governments, and to take all other steps they may consider necessary for dealing with this important question." Some discussion arose on a question introduced by M. Berger relative to short time, after which the Congress adjourned for lunch. After lunch, on the suggeetion of Herr Kuffler, it was decided to hold the closing meeting of the Congress the day following on the Rigi. Confirmed May 27th, 1904, JOHN SYZ] MINUTES. 97 CLOSING DAY'S PROCEEDINGS. Friday, May 2y, igo^. Herr JOHN SYZ in the chair. Herr Syz, in opening the meeting, again thanked the members of the Congress for having selected Switzerland as the country in which to hold the first International Congress, and also returned thanks for electing him as President. He was personally greatly indebted to the three Vice-Presidents and the Committee of Control, and the Joint Secretaries, for the assistance they had rendered him, and for their very close attention to the business of the Congress. He then stated that the Committee of Control at its last meeting had elected Mr. C. W. Macara, President of the Committee, himself Vice-President, M. Motte and Herr Gross, Hon. Treasurers, and Mr. John Smet- hurst. Secretary. It was intended to issue a full report of the proceedings of the Congress, and to prepare a scheme for an international organisation, with headquarters in Manchester. Mr. C. W. Macara, in endorsing the remarks of the President, extended to the Congress a hearty invitation to hold its next meeting in the City of Manchester. This was seconded by Mr. H. Higson, who expressed his great pleasure at having been present at the Congress, and of the friendships he had formed, which he felt would be life-long. Herr Kuffler thought that in the absence of two of the Vice-Presidents, M. Motte and Herr Gross, it would not be advisable to fix the place of meeting for next Congress. The President endorsed the views of Herr Kuffler, and it was resolved — " That Mr. Macara and Mr. Higson be thanked for their invitation, but that the question of the place and time of next meeting of Congress be left for the Committee of Control to decide." The minutes of previous day's meetings were then read and confirmed. On the motion of Herr Langen, a hearty vote of thanks was accorded to Mr. C. W. Macara for his work in originating the Congress. Thanks were also accorded the Joint Secretaries, and the Congress then concluded. MINUTES OF MEETINGS OF COMMITTEE OF CONTROL. Monday, May 28, 1904, Herr JOHN SYZ in the chair. All the members present. The Press report of the proceedings of the first meeting of Congress as submitted by the reporters was approved. Resolved, that members of Associations represented at the Congress who were not delegates should be ad- mitted as visitors if desired, but that no person be allowed in the Congress as a visitor unless an under- taking was given that he would not supply a Press report. It was resolved to invite the Consuls or Vice-Consuls of the various nationalities represented at the Congress to attend on the same undertaking as mentioned in previous resolution. It was decided to take the subject of Cotton Corners and Futures Markets after Cotton Supply, to be followed by the subject of Organisation. Tuesday, May 24, 1904, Mr. C. W. MACARA in the chair. All the members present. The Press report as submitted by the reporters was approved. The terms of the resolution on the question of the increase of ■cotton supply were then considered, Herr Kuffler contending that if the resolution was to be of any practical value it should stipulate for the formation of an International Organisation. The actual terms of the resolution were not agreed upon when the meeting adjourned. 100 INTERNATIONAL COTTON CONGRESS. Wednesday, May 25, 1904, Herr FERD. GROSS in the chair. The Press report as presented by the reporters was received, and, after one or two slight alterations, was agreed to. It was decided to meet at the Baur-au-Lac the same evening, at 9-30, to draft the resolution on cotton supply. At the Evening Meeting the terms of the resolution on cotton supply, as afterwards adopted by the Congress, were agreed to. Thursday, May 26, 1904, Herr JOHN SYZ in the chair. All the members present. Herr Kuffler said he had taken the liberty of passing the Press report as submitted by Mr. Balmforth, as Mr. Balmforth had expressed the desire to get away early, and the presence of the Committee at the time was not possible. The action of Herr Kuffler was endorsed. After some conversation it was decided that the officials of the Federation of Master Cotton Spinners' Associations, England, should prepare a report 01 the proceedings of Congress, and that a proof be sent to each member of the Committee, for approval or other- wise, before being finally printed and sent out by the officials of the Federation. Resolved, that Mr. C. W. Macara be appointed President of the International Committee, and Herr John Syz Vice-President. Resolved, that Mr. John Smethurst be appointed Secretary of the International Committee, and that the headquarters be in Manchester. Resolved, that it be a recommendation to the respective Associations represented in the Congress that a levy of Y§^ of a penny per spindle, being two francs per 1000 spindles, be made towards the funds of the International Organisation. Looms in proportion, say 50 spindles, to be equivalent to one loom, or such other number as may be equitable, and that out of such fund the expenses connected with this first Congress be paid, also the expenses of any assistance that may be required in the preparation of a scheme for definitely forming an International Organisation of Cotton Spinners and Manufacturers. MINUTES. 101 Resolved, that the drafting of such scheme be deputed to the officials of the Federation of Master Cotton Spinners' Associations, due regard to be given in the scheme to adequate representation without a pre- ponderating power to any one country, and also not to make the Committee unwieldy. The scheme to be submitted to the International Committee at a meeting to be held in Paris in September of the present year. Resolved, that the levy be paid to the Secretary as soon as possible, but not later than September ist, 1904. Resolved, that a Banking Account be opened in Man- chester in the name of the International Committee of Master Cotton Spinners and Manufacturers, and that cheques be signed by Mr. C. W. Macara and countersigned by Mr. John Smethurst. Resolved, that Herr Ferd. Gross and M. Georges MoTTE be appointed Hon. Treasurers. Resolved, that Messrs. David Smith, Garnett & Co., Chartered Accountants, Manchester, be appointed Auditors. The meeting then terminated. A RESUME OF THE WORK OF THE FEDERATION OF MASTER COTTON SPINNERS' ASSOCIATIONS, AND THE BROOKLANDS AGREEMENT. THE Federation of Master Cotton Spinners Associations was formed in the year 1891. It is, as the title suggests, a Federation of Local Master Cotton Spinners Associa- tions, and is composed of Associations in the following towns and adjacent districts : — Ashton-under-Lyne, Bury, Darwen, Farnworth, Glossop and Hyde, Heywood, Manchester, Oldham, Rochdale, Rawtenstall, Stockport. OBJECTS. The objects of the Federation are to watch over, and from time to time take such action as may be deemed to be generally in the interests of the trade of Cotton Spinners, and of the Federation districts in particular. MEMBERSHIP. The Federation has at the present time a membership of Private Firms and Limited Companies, owning over 21,000,000 spindles. OFFICERS AND COMMITTEE. The governing body consists of a President, Vice-president, and an Executive Committee of 47 members, together with a General Manager and Secretary. The members of the Executive Committee are nominated annually by the Local Associations in the proportion of one member for every half million spindles, or part thereof, in such Local Associations. Meetings of the Executive are held at least once per month. There are also various Sub-committees, such as Finance, Emergency, and Accident, and members of the Executive also represent the 104 INTERNATIONAL COTTON CONGRESS. Federation on the Committees of the British Cotton Growing Association, and the Cotton Employers Parliamentary Association. FINANCES, die. Periodically an amount per spindle is levied on the members for the carrying on of the work of the Federation. The pay- ment of these levies entitles members to indemnity by the Federation against pecuniary liability in respect of accidents to workpeople, and to financial assistance in connection with a stoppage of the mills through disputes with workpeople. Every member has also the right at all times to ask for the assistance of the Officials of the Local Association of which he is a member, or of the Officials of the Federation in matters connected with the carrying on of his business, such as rates of wages and conditions of work, &c. WORK ACCOMPLISHED. In a brief resume it will not be possible to do more than mention some of the work accomplished by the Federation on behalf of its members and the Cotton Trade generally. Its representatives are constantly meeting the representatives of the Operatives Associations for the adjustment of disputes at the mills of its members. These meetings, including meetings between Local Officials as well as those of the Federation, will total up in any one year to well over 300. This fact will show the magnitude of the Federation's work in one department alone. One of the most important pieces of work accomplished by the Federation was the settlement arrived at in the year 1893, when what is known as the Brooklands Agreement was adopted by various operatives organisations and the Federation, after a stoppage of the Federation mills lasting twenty weeks in connec- tion with a demand by the employers for a 5% reduction in the wages of the operatives on account of the state of trade. It is not too much to say that this broad and statesmanlike Agreement has, since its adoption, been the means of preventing scores of strikes, and it is one of the most important factors in the developing of intimate relations between the organisations of the employers and employed. Another important achievement has been the adoption by the Federation and the Operatives Card and Blowing Room Amalgamation of a Universal List of Prices and conditions of work in connection with the working of Revolving Flat Cards. This Agreement was only arrived at after three years negotiations, and by placing Federation mills in all districts under one List of Wages, has already almost done away with disputes in this department of mill work. In conjunction with the Cotton Employers Parliamentary Association, which is composed of representatives from the Federation and other Employers Associations, the Federation has performed valuable work in connection with measures intro- RESUME. 106 duced into Parliament dealing with the Cotton Industry,] and has also dealt with such matters as Railway Rates and Charges, Shipping Rings, Yarn Contracts, Fencing of Machinery, Assessment of Mills, and many other matters affecting adversely or otherwise the welfare of Cotton Spinners. During the years 1899 ^^^ 1900 many Conferences between representatives of the Federation and of the Operatives' Unions took place to discuss a Conciliation Scheme for the regulation of wages on the basis of a sliding scale, according to the state of trade. This scheme was intended as an addendum to the Brooklands Agreement, and to give effect to the first Clause which contains a joint recognition and admission by 'the two parties that disputes and differences are inimical to their welfare, and that it is desirable that means should be devised and adopted whereby such disputes should be settled quickly and amicably, and strikes and lockouts thereby avoided. Although the Scheme has not yet been accepted by the representatives of the Operatives, it is confidently expected that such a Scheme will ultimately be agreed to. The hope is expressed that not least among the achievements of the Federation may be counted the part it has taken in connection with the arranging of the first International Congress of Cotton Spinners and Manufacturers. That the Congress may be the means of drawing closer together in bonds of sympathy and goodwill the representatives of the various nationalities, and in solving some of the many difficulties with which the Cotton Trade is confronted, is the earnest wish of every member of the Federation. 106 INTERNATIONAL COTTON CONGRESS. BROOKLANDS AGREEMENT. The Brooklands Agreement is as follows : — TERMS OF THE AMENDED BROOKLANDS AGREEMENT, BETWEEN THE FEDERATION OF MASTER COTTON SPINNERS' ASSOCIA- TIONS AND THE EMPLOYED IN THE COTTON SPINNING TRADE, DATED DECEMBER 24TH, 1897. [The Amendments are printed in Italics.'] 1. — The representatiyes of the Employers and the representatives of the Employed, in the pending dispute, hereby admit that disputes and differences between them are inimical to the interests of both parties, and that it is expedient and desirable that some means should be adopted for the future whereby such disputes and differences may be expeditiously and amicably settled, and strikes and lockouts avoided. 2. — That the pending dispute be settled by a reduction of 7d. in the £ in the present wages of the Operative Cotton Spinners, Card and Blowing Room Hands, Reelers, Winders, and others ; such reduction to take effect forthwith, and the mills to resume work on Monday next, the 27th inst.* 3. — That when the Employers and Employed next agree upon an increase in the standard wages of the Operative Cotton Spinners, Card Room Hands, and others who participated in the last advance in wages such increase shall not exceed the reduction now agreed upon, unless in the meantime there shall have been a further reduction of such wages, in which case, should an advance be agreed to, the Employed shall be entitled to an advance equal in amount to the last preceding reduction, plus the reduction of 7d. in the £ now agreed upon, provided always that no application for an increase or reduction of such wages as now agreed upon shall be made for a period of six calendar months from the date hereof. 4.— That, subject to the last preceding clause, and with the view to prevent the Cotton Spinning Trade from being in an unsettled state too frequently from causes such as the present dispute, to the disadvantage of all parties concerned, no advance or reduction of such wages as aforesaid shall in future be sought for by the Employers or the Employed until after the expiration of at least one year from the date of the previous advance or reduction, as the case may be, nor shall any such advance or reduction when agreed upon be more or less than 5 per cent, upon the then current standard wages being paid. 5.— That the Secretary of the local Employers' Association and the Secretary of the local Trades Union shall give to the other of them, as the case may be, one calendar month's notice in writing of any and every general demand for a reduction or advance of the wages then being paid. 6.— That in future no local Employers' Association, nor the Federated Association of Employers, on the one hand, nor any Trades Union or Federa- tion of Trades Unions, on the other hand, shall countenance, encourage, or support any lockout or strike which may arise from or be caused by any * Date of Brooklands Agreement, March 24tb, 1893. BROOKLANDS AGREEMENT. 107 question, difference, or dispute, contention, grievance, or complaint with respect to work, wages, or any other matter, unless and until the same has been submitted in writing by the Secretary of the local Employers' Associa- tion to the Secretary of the local Trades Union, or by the Secretary of the local Trades Union to the Secretary of the local Employers' Association, as the case may be ; nor unless and until such Secretaries or a Committee con- sisting of three representatives of the local Trades Union with their Secretary and three representatives of the Employers' Association with their Secretary shall have failed, after full inquiry, to settle and arrange such question, difference, or dispute, contention, complaint, or grievance within the space of seven days from the receipt of the communication in writing aforesaid ; nor unless and until, failing the last-mentioned settlement or arrangement, if either of the Secretaries of the local Trades Union or local Employers' Association shall so deem it advisable, a Committee consisting of four representatives of the Federated Association of Employers , with their Secretary, and four representatives of the Amalgamated Association of the Operativea Trades Unions, with their Secretary, shall have failed to settle or arrange as aforesaid, within the further space of seven days from the time when such matter was referred to them, provided always that the Secretaries or the Committee hereinbefore mentioned, as the case may be, shall have power to extend or enlarge the said periods of seven days whenever they may deem it expedient or desirable to do so. Shcndd either the local Employers^ Association or the local Operatives' Association fail to call such a meeting loithin seven days (unless by consent of the other side), then the party which has asked for the meeting shall have the right to at mice carry the question before the Joint Committee of the Employers' Federation and the Operatives^ Amalgamation without further reference to the local Association, and should either the Employers' Federation or 'the Operatives' Amalgamation fail to deal with the matter in dispute within a further seven days, then either side shall be at liberty to take such action as they may think fit. When bad spinniyig is alleged by the operatives, and failing to obtain satiS' faction from the Employer, it is hereby agreed that the same shall be examined within three days of written notice from the Operatives' Association; but in case such three days' notice terminates on a Saturday, then the following Monday shall he reckoned one of the three days. Failing an agreement being arrived at by the officials of both Associations, a joint vieeting of the local Committee shall be held within seven days from the date of the original notice to the local Employers' Secretary. In case of failure, the course oj procedure shall be according to No. 6 Clause of the Brooklands Agreement, so far as regards the Operatives' Amal- gamation and the Employers' Federation* 7.— Should a firm make any change which when completed involves an alteration in the loork or rate of loages of the Operatives ichich is considered not satisfactory by them, then the firm shall at once place the matter in the hands of their Association, who shall immediately take action as per Clause 6, failing which the Operatives involved shall have the right to tender notices to cease work without further notice to the Employers' Association. When a settlement is arrived at it shall date from the time the change was made. 8. — Every local Employers' Association or the Federated Association of Employers on the one hand, and every local Trades Union or the Federation of Trades Unions on the other hand, shall, with as little delay as possible, furnish to the other of them, in writing, full and precise particulars with reference to any and every question, difference or dispute, contention, com- plaint, or grievance, with a view to the same being settled and arranged at the earliest possible date in the manner hereinbefore mentioned. * This clause was adopted October i8th, igoo. 108 INTERNATIONAL COTTON CONGRESS. S.— There shall not be placed upon any Joint Committee of the Federated Association and the Amalgamated Association more than one member of the local Employers' Association and one member of the local Trades Union, in addition to the respective Secretaries of those bodies. The rest of the said Joint Committee shall consist of persons xoho have not locally adjudicated upon the matter in question. It is understood that in case oj unavoidable absence of Secretary a substitute may be present to act in same capacity as Secretary. 10. — It is agreed that in respect to the opening of new markets abroad, the alteration of restrictive foreign tariffs, and other similar matters, which may benefit or injure the Cotton Trade, the same shall be dealt with by a Committee of three or more from each Federation, all the Associations agreeing to bring the whole weight of their influence to bear in furthering the general interests of the Cotton Industry in this country. 11. — The above Committee shall meet whenever the Secretary of either Federation shall be of opinion that questions affecting the general interest of the Cotton Trade should be discussed. 12. — The representatives of the Employers and the representatives of the Employed in the pending dispute do hereby mutually undertake that they will use their best endeavours to see that the engagements hereinbefore respectively entered into by them are faithfully carried out in every respect Signed on behalf of the Federation of Master Cotton Spinners' Agsociations, this 24th day of December, 1897 : Charles W. Macara, President W. Tatteesall, Secretary. * Signed on behalf of the Amalgamated Association of Operative Cotton Spinners : Thomas Ashton, President; Jab. Mawdslet, Secretary. Signed on behalf of the Amalgamated Association of Card and Blowing Boom Operatives : James Criniom, President; Wm. Mullin, Secretary. Signed on behalf of the Amalgamated Northern Counties Association of Warpers, Beelers, and Winders : David Holmes, President; Wm. H. Wilkinson, Secretary, PROGRAMME. 109 PROGRAMME OF THE CONGRESS ARRANGEMENTS. Monday, May 23. ii-o. Opening of the Congress. Roll Call. Election of the president and committee. Resolution relative to time-table. Lunch at the " Tonhalle " (if desired). Tuesday, May 24. 9-15 a.m. punctually. Reading of Minutes. 12-30 — 2-0. Lunch. 2-0. Resumption of business. In the evening the members will meet on the Uto. Start from Selnau Station at 5-30. Supper. Departure from Uto after 9-0 by special train. Wednesday, May 25. 9-15 a.m. punctually. Reading of minutes. 12-30 — 2-0. Lunch. 2-0. Resumption of business. In the evening after dinner the members will meet at the ZUrichhom. Thursday, May 26. 9-15 a.m. punctually. Reading of minutes. i-o. Banquet offered by the Swiss Association. 4-0. Excursion on the Lake of Zurich. Friday, May 2;. 9-15 a.m. punctually. Reading of minutes. 12-30 — 2-0. Lunch. 2-0. Resumption of business. In the evening the members will meet at the Grand Hotel Bolder. Saturday, May 28. Visit to the Rigi. Leaving Ziirich at 8-20 in the morning. From Rigikulm the members may either return to Ziirich (arrival in Zurich at 7-32 in the evening) or con- tinue their journey at will. During the morning meetings, a list will be sent round and members are requested to state if they wish to lunch at the Tonhalle, and also if it is their intention to take part in the proposed excursions of the 24th, 26th, and 28th. The members of the Social Committee wear a rosette in the button-hole. These arrangements were subject to some slight alterations. MANCHESTER : UABSDBN AND CO., LTD., PRINTERS, CA.RR STREET, BLACKFRIARS. Y.C V4I43