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short term basis and on a longer term would deflect consumers' choice towards imported substitutes, a trend which would be directly contrary to the national interest and the declared aims of the Chancellor.
"MERGER MANIA" PAST AND PRESENT.
To predict the future it is necessary to know and appreciate the past. Such a truism is brought to mind by the admirable paper presented last week to the Society of Dyers and Colourists by Dr. John Blackburn, one of the leading spirits in the Viyella movement.
Possibly one of the most fascinating sections of his paper was purely historical. "Merger mania", he said, was an expression normally reserved to describe the processes changing the shape of British industry today but during 1896 and 1900 there was a spate of mergers in the textile industry equal in relative scale to anything which is happen- ing at the present time. The movement started with the formation of the J. & P. Coats combine in 1896. In the following year the remaining thread makers amalgamated into English Sewing Cotton Co.
Three new groups emerged in 1898 - Fine Cotton Spinners' & Doublers' Association, Bradford Dyers' Association and the United Turkey Red Co. In 1899 Calico Printers' Association was founded, followed in 1900 by British Cotton & Wool Dyers' Association, Bleachers' Association and English Velvet & Cord Dyers' Association.
Textiles at the Top.
Had the "Times" list of leading companies been published in those days, said Dr. Blackburn, then the new textile combines would have been at the top. When C.P.A. was floated in 1899 it was capital- ised at over 8 million and was the largest company in the country.
This organisational pattern remained basically unchanged for the next 60 odd years, the only major developments being the formation of Lancashire Cotton Corporation and Combined Egyptian Mills in 1929 which completed the process of concentration in the spinning industry. The weaving and merchanting sections continued to remain highly fragmented.
Dr. Blackburn brought the picture up to date by describing the events of the 1960's when such a remarkable transformation of the trade has occurred. To illustrate this he pointed out that in the textile section of the first set of statistical tables published by the Board of Trade showing net assets and income of public quoted companies for the year 1957, out of the hundred or so companies engaged in the Lancashire part of the trade and in knitting and hosiery, 60 no longer have a separate independent existence today.
Growth of Groups.
Before the merger movement in March 1963, he continued, there were 695 firms engaged in spinning, doubling, weaving and finishing, employing 180,000 operatives. The largest four firms accounted for 16% of total employment. By November 1968 the total number of firms had dropped to 469 and the number of operatives to 124,000 but those employed by the four lagest firms had gone up to 46,700, representing 38% of total employment.
Overall figures, Dr. Blackburn remarked, concealed an even greater increase in the degree of concentration in certain sectors. Courtaulds, Viyella and English Calico now account for about half the total spinning capacity and about 60% of printing; Courtaulds, Viyella and Carrington & Dewhurst represent about 60% of piece dyeing and almost 60% of filament weaving.
Compared with their predecessors these companies do not confine themselves to traditional textiles but have expanded into warp knitting, weft knitting, synthetic yarn processing and garments. For example, Courtaulds, Viyella and Carrington & Dowhurst account for almost 60%