Oldham Limiteds
Encyclopedia
Oldham Limiteds were the 154 cotton manufacturing companies founded to build or operate cotton mill
s in Oldham
in northwest England
, and predominantly during the joint-stock boom of 1873–1875.
, such would be found in Manchester
or Bolton
. It did have many small companies that worked out of Room and power mill
s. Oldham was an early and enthuastic participant in the co-operative movement. In the 1850s Oldham saw the expansion of friendly and building societies, sick and funeral clubs, and cooperative stores. These societies, along with the Joint Stock Acts of 1855-56, laid the foundation for the popularity of limited liability companies. The pioneer company was the Oldham Building and Manufacturing Co. Ltd., formed by skilled workers who sought to gain a greater equality of income and wealth through cooperation. Having shares in the company was seen as a form of profit sharing
, and indeed by about 1875, about 75 percent of mill workers held shares in the limiteds. That is 20% of Oldham's population.
was built between 1860 and 1862 by a company which was founded in 1858 by members of the Oldham Industrial Co-operative Society. Following the principles of the Rochdale Pioneers
, William Marcroft gave the new company a democratic structure designed to foster the principles of producer co-operation and employee control. Management of the company was by means of elected committees. The limited liability
principle, to which the co-operators also subscribed following the Companies Acts of 1856 and 1862, was seen as an adjunct of co-operation.
Sun Mill was originally built to accommodate 60,000 spindles
, three times the average number then found in local mills. The Oldham Building Co. later became the Sun Mill Co. Ltd, and extended the mill to 142,000 spindles. The Sun Mill Company is credited as being the first of the Oldham Limiteds. The share holders were skilled workers at the mill, and though in fact, they had little involvement in running the company, They received a dividend of over 12%.
subscriptions, generally in equal proportions.. Workers were virtually guaranteed to earn more in dividend (always over 5%) than in a saving bank. Share were trader over tables in local public houses and Oldham had its own stock exchange. It was in the workers interest to ensure that the mill was profitable so they received the largest dividend. When in 1875, there was a change in conditions of service of textile workers from the pay scale called the 1872 Oldham list, to the 1875 Oldham list the transition went smoothly, as the dividend was an important incentive. Wage rates climbed and costs were recouped by using inferior cotton. William Ewart Gladstone
, is quoted in saying in 1867, that the working class
had become "an association of small capitalists employing other work people."
the Depression of 1890–1896, when stock market index dropped for 48 month strained the working class capitalist system. Trade unions which never had had hold in Oldham offered more security than share ownership. The boards of the Oldham Limiteds became more secretive and the cooperative principle was abandoned. In 1893, the Brooklands Lockout had been resolved by the Brooklands Agreement. Wage negotiations passed from the individual mill to agreements between the professional negotiators of the principal unions and the employers federation.
As maintaining the dividend became a priority and the mill was starved of capital investment. The good times peaked in 1926, and because, Oldham had specialised in the coarse counts it was far more vulnerable to competition from the emerging Indian and Japanese industries than other Lancashire towns.
Cotton mill
A cotton mill is a factory that houses spinning and weaving machinery. Typically built between 1775 and 1930, mills spun cotton which was an important product during the Industrial Revolution....
s in Oldham
Oldham
Oldham is a large town in Greater Manchester, England. It lies amid the Pennines on elevated ground between the rivers Irk and Medlock, south-southeast of Rochdale, and northeast of the city of Manchester...
in northwest England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, and predominantly during the joint-stock boom of 1873–1875.
History
Oldham was late in coming to cotton, and did not have many large privately owned millsCotton mill
A cotton mill is a factory that houses spinning and weaving machinery. Typically built between 1775 and 1930, mills spun cotton which was an important product during the Industrial Revolution....
, such would be found in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
or Bolton
Bolton
Bolton is a town in Greater Manchester, in the North West of England. Close to the West Pennine Moors, it is north west of the city of Manchester. Bolton is surrounded by several smaller towns and villages which together form the Metropolitan Borough of Bolton, of which Bolton is the...
. It did have many small companies that worked out of Room and power mill
Room and power mill
A room and power mill was a type of textile mill found in Lancashire region of England in the 19th century. Small businesses paid the owner rent for space for their machines, and power from the mill engine or waterwheel.-The System:...
s. Oldham was an early and enthuastic participant in the co-operative movement. In the 1850s Oldham saw the expansion of friendly and building societies, sick and funeral clubs, and cooperative stores. These societies, along with the Joint Stock Acts of 1855-56, laid the foundation for the popularity of limited liability companies. The pioneer company was the Oldham Building and Manufacturing Co. Ltd., formed by skilled workers who sought to gain a greater equality of income and wealth through cooperation. Having shares in the company was seen as a form of profit sharing
Profit sharing
Profit sharing, when used as a special term, refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses...
, and indeed by about 1875, about 75 percent of mill workers held shares in the limiteds. That is 20% of Oldham's population.
Sun Mill, Chadderton
Sun Mill, ChaddertonChadderton
Chadderton is a town within the Metropolitan Borough of Oldham, in Greater Manchester, England, historically a part of Lancashire...
was built between 1860 and 1862 by a company which was founded in 1858 by members of the Oldham Industrial Co-operative Society. Following the principles of the Rochdale Pioneers
Rochdale Pioneers
The Rochdale Society of Equitable Pioneers, founded in 1844, was an early consumer co-operative, and the first to pay a patronage dividend, forming the basis for the modern co-operative movement....
, William Marcroft gave the new company a democratic structure designed to foster the principles of producer co-operation and employee control. Management of the company was by means of elected committees. The limited liability
Limited liability
Limited liability is a concept where by a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its...
principle, to which the co-operators also subscribed following the Companies Acts of 1856 and 1862, was seen as an adjunct of co-operation.
Sun Mill was originally built to accommodate 60,000 spindles
Spindle (textiles)
A spindle is a wooden spike used for spinning wool, flax, hemp, cotton, and other fibres into thread. It is commonly weighted at either the bottom middle or top, most commonly by a circular or spherical object called a whorl, and may also have a hook, groove or notch, though spindles without...
, three times the average number then found in local mills. The Oldham Building Co. later became the Sun Mill Co. Ltd, and extended the mill to 142,000 spindles. The Sun Mill Company is credited as being the first of the Oldham Limiteds. The share holders were skilled workers at the mill, and though in fact, they had little involvement in running the company, They received a dividend of over 12%.
The 1873–75 boom
Workers were active investing in the first wave of expansion of the limiteds between 1870 and 1873, and the wave of 1873–75. Many of the new companies were conversions of failing private concerns. When the boom ended a hundred companies had been created. An average worker could earn about £1.75 a week (35 shillings). A share could be bought for £5.00. Workers would buy shares in their own company and maybe another mill to balance the risk. Companies' capital consisted of loan finance as well as equityStock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
subscriptions, generally in equal proportions.. Workers were virtually guaranteed to earn more in dividend (always over 5%) than in a saving bank. Share were trader over tables in local public houses and Oldham had its own stock exchange. It was in the workers interest to ensure that the mill was profitable so they received the largest dividend. When in 1875, there was a change in conditions of service of textile workers from the pay scale called the 1872 Oldham list, to the 1875 Oldham list the transition went smoothly, as the dividend was an important incentive. Wage rates climbed and costs were recouped by using inferior cotton. William Ewart Gladstone
William Ewart Gladstone
William Ewart Gladstone FRS FSS was a British Liberal statesman. In a career lasting over sixty years, he served as Prime Minister four separate times , more than any other person. Gladstone was also Britain's oldest Prime Minister, 84 years old when he resigned for the last time...
, is quoted in saying in 1867, that the working class
Working class
Working class is a term used in the social sciences and in ordinary conversation to describe those employed in lower tier jobs , often extending to those in unemployment or otherwise possessing below-average incomes...
had become "an association of small capitalists employing other work people."
Oldham counts
Lancashire was renowned for the production of the finest, which means thinest, cotton yarn. When the Oldham Limiteds started to expand the spindlage in Oldham, they competed by spinning coarse yarn. The grade of cotton, is measured by its count. This refers to the number of hanks of 840 yards than collectively weigh 1 lb. 1-40 is called a coarse count in the United Kingdom, 40-80 is a medium count and 80 to 160 is fine. Consequently, an Oldham count, is a count between 1 and 40. In the United States, the terms are used differently.Future investment
There were two other booms, 1883–84 and 1889–90. In all, from 1858–96, Oldham formed 154 limiteds, or more than twice as much as found in Bolton . The only other part of the textile industry where the limited company had the same hold as in Oldham was the Irish linen trade . Company voting was on the egalitarian method of one man one vote. They could be ruthless dismissing the whole board if they were seen to be under-performing.the Depression of 1890–1896, when stock market index dropped for 48 month strained the working class capitalist system. Trade unions which never had had hold in Oldham offered more security than share ownership. The boards of the Oldham Limiteds became more secretive and the cooperative principle was abandoned. In 1893, the Brooklands Lockout had been resolved by the Brooklands Agreement. Wage negotiations passed from the individual mill to agreements between the professional negotiators of the principal unions and the employers federation.
As maintaining the dividend became a priority and the mill was starved of capital investment. The good times peaked in 1926, and because, Oldham had specialised in the coarse counts it was far more vulnerable to competition from the emerging Indian and Japanese industries than other Lancashire towns.