In a speech delivered at Salem in 1906, Sir Arthur Lawley, Governor of Madras, spoke as follows. "I know something of the prosperity of the weaving industry in days gone by, and I regret exceedingly to learn that it is not in so flourishing a condition as at one time it well claimed to be. Now, we have all of us heard a good deal of Swadeshi, and the Government is being constantly urged, from time to time, to do something to foster the industries of this country. We made a beginning here by setting up a Weaving Institute. We believed that by doing so we should put within the knowledge of the weavers of this district methods whereby their output of cloth would be greater, while the cost was reduced, and that thus their material prosperity would be considerably advanced. Now it is somewhat of a surprise, and considerable disappointment to me to learn that this effort which we have made is regarded with suspicion, if not with hostility. I am afraid our motives have been misunderstood, because I need hardly assure you that the idea that the Government should enter into competition with any of the industries of the country never suggested itself to us. We desired simply and solely to infuse some fresh spirit into an industry which was languishing." In a note on the weaving industry, Mr. E. B. Havell writes thus. [132] "The principle of the Danish co-operative system as applied to dairy-farming is the combination of a number of small proprietors for sending their products to a central factory, in which each of them has a share proportionate to the quantity of his contributions. In the management of the factory, each member has an absolutely equal voice, irrespective of his holdings. Adapting such a system to the Indian weaving industry, each weaving community would have a central establishment under its own control, which would arrange the purchase of material at wholesale rates, prepare warps for the weavers' looms, and organise the sale of the finished products. The actual weaving would be carried on as at present in the weavers' houses by the master weavers and their apprentices. If a system of this kind would retain the economic advantages of the factory system, and eliminate its many evils, it is obvious that a factory, owned and controlled by the weavers themselves, and worked only for their advantage, is a very different thing to a factory controlled by capitalists only for the purpose of exploiting the labour of their employees."