The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1913-01-02

In the consideration of tariff legislation applied
and the manufactures of wool the parties in interest
are the public the ultimate consumer and the wool
grower and manufacturer (ncudng the principals and
all employees and every other person interested in fur
nshing him with buildings. machinery, soap. dyes,
chemicals and supplies.
Has the manufacturer secured undue or excessive
profits under the present law? The record of the IN
dl,stry shows concusively that he has not
THREE. factors have prevented this, as follows:
Fmsr-Kecn Competition.
There approximately 650 900 looms making woolenS
and worsteds capable without running overtime, of a
yearly output of 325,oOoo0O broad yards worth about
1925 100000 The average yearly sales estimated at
S25O,000OOO. The banner years with many looms run
ming day and night have reached $300OO0O0O indicating
that the possible production at all times i'll OF
the demand, making the closest figuring and highest
manufacturing efficiency necessary to market the product
any profit
Because of heavy fixed charges including investment
taxes insurance samples and supplies it necessary to
turn off maximum yarlage to meet price competition
Manufacturing increases production is
tailed and it not unusual for manufacturing cost per
productions
These figures indicate that under favorable
ket conditions % per of the machinery idle all of the
time that all of the machinery is idle % per cent Of
the time
SEcoNp.-Thc Mutations Of Fashion,
Each radically different fabric (and there scores
of them requires special equipment in machinery and
organization
When the market demands the kind of a fabric a
mill is especially equipped to make, that mill will
satisfactory profit while the demand holds. until
enough other mills change their equipment to sue
cessfuy compete and thus lower the price and reduce
the profit margin.
When the public partially or wholly abandons a fabric
the mills especially equipped to make that fabric have
done of three things Changed their equipment and
fought for business other cloths continued to make
at loss in the hope that it would return to favor
iquidated the business built up by years of effort
through bankruptcy proceedings, Indicated by the per-
ceage of failures in every textile center in the last fifteen
years
To illustrate the ninees the kersey was vogue
for Gradually its popularity waned until
the mills whose then well known throughout
the trade have either lqudaed changed their equipment
continued to supply the reduced demand at meagre
profit actual loss
The nearest approach to staple fabric Is the PLAN
SERGE which competition has forced the selling price
to point to the lowest possible cost of manu-
acture that only mills with abundant capital and special
equipment in organization and machinery market
it at any profit at all
Because of the close communication between the diff
erent sections Of country, these radical changes in
fashion simultaneous and practically unanimous The
foreign manufacturer selling widely separated markets.
such close touch with each other and comprised Of
conservative peoples escapes this difficult situation
to large degree.
These conditions explain why the industry composed
of large percentage of small and medum-szed
with moderate capital and why it is impossible for any
any number of large organizations either absorb
the business force the small manufacturer out The
largest individual wool manufacturing corporation
trolls less than one-sixh of the machinery and the
largest corporations control less than onethd of the
chnery leaving twothrds of the machinery in the hands
of 600 separate and distinct organizations
TlnRp.-7ht Athtude Of the Purchasing apubijc To-
tcayd Domestic Fabrics As Compared With
Foreign.
Cloths marked " Made i'll Britain " Made in Ger
many Made in France command higher price and