January i, ib8 9 .] THE TROPICAL AttRltfflLTUmdT. 
469 
Financially this group shows to better advantage 
than the Englis'i group. Its paid-up capital is 130} 
lakhs, in round numbers, against a block account of 
lf>b' lakhs, but as the mills can fall back upon a 
reserve of over 23j lakhs they have no lien on them 
in that rospect, as is the case with the English 
group. The loon capital of this group is about 43 
per cent of its own money, though it has had to pay 
.nterest on the amount at 7i por cent against 5£ 
perceutof the English group. Looking to the earning 
columns, it will bo found that, like the English group, 
those mills which have a larger block account than 
their capital, and whoso borrowings consequently are 
greater, show a better result than their neighbours. 
These mills are Nos. 1, 2, 4, 5, and 6, whose earning range 
between 18 and 22h per cent. They are all new mills, 
they have a block account of 43 lakhs against a paid-up 
capital of only 28 lakhs. No wonder, then, that 
when they can earn over 20 per cent, with borrowed 
money, whioh costs them much less, they should 
like to sail with light ballast, though it is neces- 
sary to remind them of the prudence of not forget- 
ting the Ides of March. Tho item of commission 
in this group olfera a marked contrast to the same 
item in tho English group. The gross earnings of 
the mills are comprised in columns 9 and 10 of the 
respective groups, and we thus find that, while the 
Engh h mills pay their managers only K64,420, ont 
of R9,72,197, the mills have paid R5,61,001, out of 
R23,57,297, being equal to GJ and 22j per cent, re- 
spectively, on the gross earnings. The system of ' 
III. — HINDOO 
charging commission in onr mill management is a 
threadbare subject of controversy in these parts, 
and it is scarcely necessary to say that most of the 
mills in Bombay allow their managers a quarter 
anna per lb. upon the yarn sold, which, for rough 
calculation, may bo taken at 3£ per cent on the gross 
proceeds. The English mills, however, allow only 10 
per oent on the net earnings, and the newer mills that 
are now being projected are obliged to conform to that 
system or to a sliding scale in which the remunera- 
tion bears some relation to profit. The Jamshed 
Mill, in tho Parsee group, sets a laudable example 
in the former respect, as its commission is a per. 
oentage on the net proceeds only. It will be seen 
that financially the Maneckjee Petit Mill is the 
strongest, having a reserve of fully 35 per cent, of 
its capital, and this tells favourably on its earnings, 
which are the highest but one of the old mills in the 
groups that precede, and that which follows. 
The group which follows is the Hindoo group, 
which comprises mostly old mills, only three mills 
(Nos. 2, 6, and 13) being new concerns. Another 
speciality of this group is that the mills combine 
spinning and weaving, whereas the majority of the two 
previous groups confine themselves to spinning. This 
is probably owing to the business relations of tho 
managing firms with the interior marts of the country, 
which enable them to move off their cloth to better 
advantage than their English or Parsee ueighoours. The 
accounts of this group also are made up for the year 
ending June, 1888, except when otherwise mentioned 
GROUP. 
No. 
Name?. 
Paid up 
Spindles. Looms. Capital. 
Interest Agents* 
Loan Reserve on Loan Commis- 
Capital. Fund. Capital. sion 
Alliance 30,86-1 
Luktimidas 83,36 1 
Mululuxmec 34,696 
Bombay United 22,136 
Hindoostaii 34,028 
Indian M'fucturing (188 7) 20,580 
Jivruz Baloo (1387) ... 36,950 
Khatao 25,360 
Morarjeo ... - 37,048 
Great Eastern (1887) ... 33,102 
Suonderdn.sa 10,680 
Western India 28,720 
Bombay Cotton Manu- 
facturing C'onj|»any ... 6,710 
Nil. 
180 
701 
100 
.-.21 
310 
517 
709 
201 
002 
17,91,000 
7,82,000 
0,50. 
9,00,000 
12,00,000 
6,00,000 
11,00,000 
9,95,0i m 
11,50,000 
15,00,000 
6,50,000 
12.00.iAXi 
•1,32,655 
5,18,600 
8,64,210 
46,628 
10,92,339 
5,12,755 
3,05,706 
3,94,625 
1,87,713 
575,342 
5.23,208 
8,82,426 
2,01,212 
77,000 
3,47,751 
35,000 
62,000 
6,15,361 
3,15,050 
7,47,480 
17,520 
1,45,600 
59,000 
19,796 
39,451 
17,070 
Nil. 
02.5*7 
30, 153 
15.G80 
17,357 
1H.014 
32.i-.iiO 
31,581 
18.572 
46,271 
61,600 
28,098 
34,375 
60,777 
33,246 
49,287 
30.113 
05.733 
CO,.'tO 
23,584 
45,510 
2,98,500 2,33,252 13,750 15,729 27,929 
Perceu- Dividend 
Profit for tago of paid 
the year.Prolit 011 Share- 
Capital holders, 
paid up. 
1,49. G65 
1,68,401 
45,095 
1,15,280 
1.16,620 
1,14,253 
1.64,421 
76,811 
S,79.4«4 
1,32,227 
10,515 
78,183 
8- 35 
21-52 
7 
1280 
9- 71 
19 
1 1 91 
7- 70 
24-30 
8- 81 
7-15 
0-54 
Per cent, 
0 
12 
4 
14 
10 
141 
1 
5J 
5 
19,91 1 16 24 
1,28,10,500 63,09,458 20,27,730 3,18,930 5,73,109 15,37,679 164-03 101-50 
1 Siuusoon (1887) 
918 
Average iiurcentagc 
15,00,000 10,33,435 
Of earnings and dividends., 
..— 12-61 
■1,39,720 1,03,620 60,495 3,99,208 19 95 
It will be seen that this group runs parallel with 
tin l'liM i group, not only 111 regard 10 its pii 1 up 
capital, but also in respect of its roserve funds. 
But when wo comu to look ot tho block aocouuta, 
then they part company, tho Parsoo block account 
being 160 lakhs, against 10 1 lakhs, recorded in iho 
Hindoo group. In regard to the rate of interest, 
also the Hindoos enjoy advantage over the Parsee*. 
The latter have paid 7} por cent, for their money, 
whereas tho Hindoos have beon able to get tin irs 
at 5J per cent only. Their earnings, however 
show only 1S*6J per cent, against 1032 per oent 
of the Paroeea, and the differenco cau only be 
accounted for by the largo number of old mills in 
this group, as well as by so many of them having 
a weaving business, too, whioh seems to be a drain 
on the spinning department. It will further be 
seen that hko tho Maneokjoo Petit in the Parsee 
group, Morarji Mill (No. 9) is financially in a 
Strong position, ami for tho sumo reason namely, 
owing to its having built up u, good reserve 
(R7.-17.I80) which amounts to 05 per cent, of its 
capital. The dividend paid by this mill (1IA per 
cent) is the highest of any of the old mills iu all the 
group.s— though tin Indian Manufacturing ( No. ti 1 ruus 
close to it, with its ll per ccut. In the interest of pru- 
dent management, however, one could not help wish- 
ing that the last mentioned concern had looked oloccly 
to its reserve, which is only ten per cent of it* capital, 
against 05 per cent held by its rival, though in this 
tespebt its action is quite justifiable when contrasted 
with that of one of tho English mills. This mill, in 
order to round off a half-yearly dividend, had to bor- 
' row money, and the amount so borrowed appears iu 
its accouuts as "loss" on tho half-yiar's cperatious. 
The lust mill on our list is the Stis-oon's, and though 
moving in an orbit of itsowu, it has nothing to luaru 
from its rivals. On the contrary, for an old mill its 
percentage of earning is the highest of all but one of 
similar concerns, und instead of dividiug the whole 
enmings, the managers have, with real mercantile iu- 
stiuct, taken a moiety to increase their reserve, and 
otherwise strengthen th. ir position. 
Taking then all the groups together, the main 
result is that with a capital of three croros and filtnu 
lakhs, or £3,150,000 conventional sterling, the cotton 
iu lu-tr y ln-re leis realized :i e,ru- 1 return of K ",S lakhs, 
or i")Ho l o()0, or over eighteou per cent. S..1110 tlito 
years ago it was mentioned in Bltuktwl's IfilMUMM 
in an arm;.- entitled " beottudi Capital Abroad'" ilia: 
more than twelve millions of .Scotland's money invest- 
ed in America uud ou tho coutiueut had not roturuod 
