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Cannon Mills and Kannapolis
Cannon Mills was once the country’s largest
manufacturer of household textiles, and in many ways it
exemplified the textile industry and paternalism in the
postbellum South. At the same time, however, its particular brand
of paternalism was much stronger and more enduring than
elsewhere, and it remained in place long after most of the
industry had transitioned to modern, bureaucratic management. In
Cannon Mills and Kannapolis , Tim Vanderburg critically
examines the rise of the Cannon Mills textile company and the
North Carolina community that grew up around it. Beginning with
the founding of the company and the establishment of its mill
town by James W. Cannon, the author draws on a wealth of primary
sources to show how, under Cannon’s paternalism, workers
developed a collective identity and for generations accepted the
limits this paternalism placed on their freedom. After exploring
the growth and maturation of Cannon Mills against the backdrop of
World War I and its aftermath, Vanderburg examines the impact of
the Great Depression and World War II and then analyzes the
postwar market forces that, along with federal policies and
unionization, set in motion the industry’s shift from a
paternalistic model to bureaucratic authority. The final section
of the book traces the decline of paternalism and the eventual
decline of Cannon Mills when the death of the founder’s
son, Charles Cannon, led to three successive sales of the
company. Pillowtex, its final owner, filed for bankruptcy and was
liquidated in 2003. Vanderburg uses Cannon Mills’s
intriguing history to help answer some of the larger questions
involving industry and paternalism in the postbellum South.
Complete with maps and historic photographs, this authoritative,
highly readable account of one company and the town it created
adds a captivating layer of complexity to our understanding of
southern capitalism.
eBook
Cannon Mills and Postwar America
Charles Cannon entered the postwar years with guarded optimism about the business climate. Sales had increased from $44,532,000 in 1939 to $79,386,000 in 1945, with net profits growing from $4,355,000 to $10,153,000.¹ At the start of the war, the textile manufacturer had controlled 70 percent of the towel market in the United States and had built strong brand recognition and loyalty. In addition, Cannon’s sheet and hosiery divisions had also achieved strong sales.
The postwar company continued to reflect the influence of the Cannon family. By this time, the board of directors, ten in all, consisted of four Cannons.² Besides
Book Chapter
The Civil Rights Movement, Federal Interference, and the Weakening of Paternalism
The civil rights movement eventually had a major impact on Cannon Mills. President Kennedy demonstrated his support for civil rights in the workplace in 1961 by signing Executive Order 10925, which forbad discrimination in hiring and promotion for firms that worked on government contracts. This order became more important as the United States became more involved in the Vietnam War.¹ It was estimated that the war resulted in forty-one thousand textile jobs and therefore the order gave the government leverage on black employment in the textile industry.²
The textile industry was hesitant to hire blacks for production jobs. Textile management
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A Time of Upheaval
The period from 1908 to 1921 was a time of change and upheaval for the Cannon Manufacturing Company. Cannon’s textile company expanded operations and firmly established itself as the premier towel manufacturer in the world. Simultaneously, the firm battled progressive child legislation and dealt with the problems and opportunities of World War I. Industrial peace did not follow the end of the conflict, however, as the textile firm aggressively combated unionization efforts. After successfully squelching the union, the firm experienced its greatest crisis with the death of its founder.
In addition, the Progressive movement reached its height during this period.
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Paternalism Expanded
With Cannon Manufacturing Company under the leadership of Charles Cannon, the firm expanded its welfare work. Labor historian Stuart Brandes defined welfare work, or welfare capitalism, as “any service provided for the comfort or improvement of employees which was neither a necessity of the industry nor required by law.”¹ Brandes believed that industrialists initiated welfare work for three reasons. First, altruism motivated some employers. Second, employers wished to get more control over their employees to make them better workers. If the programs begun by the employer made the workers more efficient and loyal, then welfare capitalism was an investment in
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James William Cannon
James William Cannon, a business leader who represented the spirit of the New South, brought industrial progress to Piedmont North Carolina. Along with other such leaders, Cannon worked to rebuild the South after the Civil War. These leaders believed in a diversified economy but felt the South had distinct advantages in the textile industry. By building mills near cotton fields, for example, the South could save on transportation costs and undercut northern prices. In addition, the South had a cheaper labor force that was not significantly unionized.¹ Enthusiasm for the textile industry culminated in the tidal wave known as the
Book Chapter
The Founding of Kannapolis
To facilitate expansion of his towel manufacturing, James Cannon sent Concord real estate agent John K. Patterson to Glass, North Carolina, to purchase six hundred acres of land. Glass was a small community north of Concord along the Southern Railway line that consisted of a general store owned by John Peter Triece, a post office, and a rail depot. Patterson secured options on only three hundred acres in the vicinity of Glass, so he traveled farther north along the unpaved Salisbury Road and obtained options on twelve hundred acres in Cabarrus and Rowan counties. In 1905 and 1906, Cannon exercised
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Postwar Downturn, Labor Unrest, and New Management
Soon after the armistice, demand for textiles declined as the government canceled contracts. The War Industries Board announced that when possible, the government would not cancel contracts, and that certain criteria would be considered before orders were canceled. These included the effects of the cancelation on the industry, labor, the community, and the textile firm. In spite of some reassuring words, the government immediately began to cancel orders placed after October 1, 1918. Furthermore, the War Industries Board announced that modifications or adjustments could be made to contracts amounting to more than $100,000.¹ Cannon’s firm soon had more than $3.5
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