Many mills can no longer depend upon the local supply of cotton, and the freight charge from the Lower South is as high as the rate by water to New England or even higher; the transportation of the finished product to Northern markets is an additional expense; wages have risen with the growth of the industry and are approaching closely, if they have not reached, the rate per unit of product paid in other sections.

The cost of fuel has increased, although in some localities the development of hydro-electric power has reduced this item.

All the States have imposed restrictions upon the employment of women and children in the mills, particularly at night.

On the other hand, taxes remain lower, the cost of building is less, and strikes and other forms of industrial friction are still uncommon.

When well managed, the Southern mills are still extremely profitable, but margin for error in management has become less.
The Southern mills are chiefly to be found in four States, North Carolina, South Carolina, Georgia, and Alabama, and in the hill country of these States, though a few large mills are situated in the lowlands.
North Carolina, with over three hundred mills, has more than any other State, North or South, and consumes more cotton than any other Southern State--over a million bales.
South Carolina, however, has more spindles, the average size of its mills is larger, and it spins more fine yarn.