A statement covering five years for average well-managed mill properties in and around Greenville, South Carolina, shows, he said:
Average earnings on plant cost 13.47 per cent. " " per spindle $ 2.94 " cost " " 21.08 Capitalized at " " 12.72
His conclusion was that "In general, the dividends on the actual cost of the plants have not been over 12 per cent."[421]
As to the development, nature and persistence of a market in the South for cotton mill securities, the principal partner in a firm dealing in stocks, bonds, real estate loans, and fire insurance, who has besides long been identified with the cotton manufacturing industry in the Piedmont region, said: "... as far as I am able to recall, the stock market began to develop in this section about 1898 to 1901; and referring to some old records, as of March, 1901, I find such entries as this:
"About this date, in the up-country there were several young men who began trading in these stocks largely on a brokerage proposition. I recall the names of:
A. M. Law & Co Spartanburg, S.C. W. D. Glenn Spartanburg, S.C. F. C. Abbott & Co Charlotte, N.C. George E. Gibbon Charleston, S.C.
and a few others whose names I do not recall just now.
"In Greenville, there was Mr. A. G. Furman.... All these men are still in the same line of business, and from small beginnings, have developed satisfactory business in the buying and selling of these securities.
"One element that lends itself to this business was the fact that in a number of instances builders of machinery would take part of their bill in stock, and later dispose of these holdings at concessions. I recall in one year that I disposed of about $2,000,000.00 worth of such stocks."[422]
An investor with considerable cotton mill holdings, in his replies, threw a little different light on the matter in some particulars: "A market for cotton mill securities developed between 1890 and 1900. There is less sale for them now, but in those ten years they used to go like hot cakes. All these brokers take a whack at them, but any man would starve that tried to deal in them exclusively. I had a friend that tried to make his living from dealing in them, but he didn't make his office rent, I deal in them a little, more than anything else for accommodation to friends. There is practically nothing in it for me."[423]