Southern mills have paid high dividends in the past and have also greatly enlarged their plants from their earnings. They had, years ago, several advantages, some of which persist to the present day. The cost of the raw material was less where a local supply of cotton could be obtained, since freight charges were saved by purchase in the neighborhood; land and buildings for plant and tenements cost less than in the North; fuel was cheaper; water power was often utilized, though sometimes this saving was offset by the cost of transportation; taxes were lower; the rate of wages was lower; there was little or no restriction of the conditions of employment; and there were comparatively few labor troubles. With the great growth of the industry, however, some of these early advantages have disappeared. 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.