Spinning room in a large mill. These are all ring spindles

The prices at which the goods are to be sold are fixed by the mill, but, of course, they will finally sell at prices determined by the market conditions. As the goods are sold, the amounts which they bring are credited to the mill, less whatever has been advanced against them. The selling agent also stands ready, no matter on what time and terms the goods may be sold, to credit the mill with the net value of the sale, less 6% interest for the unexpired time within which the customer may pay, and from this interest charge also he secures part of his return. Of course if bank rates are very high, as they sometimes are for short periods, the factor may be out of pocket on the interest account, instead of making profit. As the goods are sold, so are the equities in them released, and the balance is credited to the mill. If, however, the goods sell at a loss there will be no equities coming to the mill, and, in fact, there are not infrequently deficiencies to make up.

For these services, and according to the nature of the goods being sold, various commissions are charged, usually ranging between the limits of 4 and 8% of the net returns of the sales. Plain unfinished goods which are marketed in large quantities are charged for at a relatively low figure, while fancy goods, sold in smaller quantities and requiring more effort and expense to sell them, are charged for at a higher figure.

The selling agent also guarantees the credits of the firms to which he sells, so that no losses for bad debts can fall upon 32 the manufacturer, but, at the same time, he will decline orders from any concerns except those with whose credit he is entirely satisfied.

Not infrequently when the manufacturer conducts his own selling operations, he will use the facilities afforded by the commission house for the financial part of the business only, taking advances on his goods, having his sales cashed, and his credits guaranteed, etc. For these lesser services, of course, the commissions charged are smaller.

When goods are charged out, the bills are payable to the commission house, and so, as far as the customer is concerned, the commission house is the principal in the transaction. In many cases certain modified arrangements are made, but in most instances the business is conducted as herein described, and it may fairly be said that the bulk of the dry goods of all kinds produced in the United States finds its way into the market through commission house channels.

Making Plain Goods
for Future Orders

It is the policy of most cotton mills, and certainly of those making plain goods, to run steadily all the year round, and thus the commission agent, whether he has secured advance orders on the goods or not, has constantly flowing into his hands an assured stream of merchandise which must eventually, when sold, pay him a commission. Thus the securing of a good account means an assured source of revenue to the commission agent.

There are no more important selling organizations for textiles than these dry goods commission houses, many of them having an immense and profitable turnover, and their businesses are conducted on a very high plane of efficiency, and probity, although, in itself, there are many evils attendant upon this method of the distribution of merchandise, and which exercise at times a most adverse influence upon the well being of the mills whose product is thus disposed of.

Strength of Agents
Makes "Paper" Acceptable