New Britain herald., 1915-12-27
HOSIERY INDUSTRY
 IS DOOMED BY WAR
But Production Increased Annual
 ly Even Before Conflict
(Special to the Herald.J

States, just completed by the Bureau of Foreign Domestic Commerce, De- partment of Commerce, it IS pointed out that since the war started there has been a great increase Tn the production of hosiery in this country and that even before the war began there had been a steady increase or about 15 per cent. annually for d number of years. One of the most noticeable results of the increased home production before the war started was the rapid decrease in imports. From 1909 to 1915 imports of cotton hosiery fell off from $6, ,4OO,- 900 to $3,000,00O or over 50 per cent.
 This report by the Bureau of For eign and Domestic Commerce is en- titled '"The Hosiery Industry'' and IS the second of a series of studies of the clothing industry. the first of which dealt with muslin underwear. The reports are prepared by the Cost of Production Division of the Bureau and are intended primarily for the assistance of Congress when tariff leg islation is being considered, the work of the Bureau in this respect cor- responding to that of tariff board. The original intention in preparing the report on hosiery was to make a corresponding study of conditions in Europe, but the war rendered such an undertaking out of the question.
 The report as it stands, however, serves the very useful purpose of demonstrating that the hosiery in dustry in this country is in a pretty sound and healthy condition. Cle of the most important reasons aS- signed for this satisfactory state of affairs is the excellence of American seamless hosiery. This style of foot wear is distinctively American. The knitting machines used in it's manu- facture have been brought to their present state of efficiency by Ameri- can inventors, and their use is con- fined largely to this country. No less than 90 per cent. of the hosiery manufactured here is seamless Low cost of manufacture is the main req son for it's position in the market.
 The more expensive hosiery is full fashioned. That is, it is made of shap- ed or fashioned pieces which are clos ed by scanning and looping. It has seam up the back While higher priced, it is more likely to fit per- fectly. There was a time when all such hosiery came from abroad, and today practically all imported hose is full fashioned It is the product upon which European knitters con- centrated while Americans were per- fecting the seamless article. Of late years, however, the American mills have pushed forward even in this line. Between 1909 and 1914 the i'm ports of hosiery fell off heavily, part ly on account of the growing popular ity of the cheaper seamless product but partly also because of the fact that the American full fashioned stocking was brought quite up to the level of it's foreign rival. The cheap CT full-fashioned cotton hosiery forms the bulk of the imports at present. The only silk hosiery purchased from abroad now is the very high-class expensive stocking demanded for special occasions.
 Net Sales Profit 6.66 Per Cent.
 The study just completed by the Bureau of Foreign and Domestic Com- merce was made 10 include 73 estab- lishments. located in 16 States. Of these mills, 55 earned manufacturing profits, and IS had losses The aver age manufacturing profit on net sales was 6.66 per cent. and the average manufacturing profit on capital en- ployed in business was 11.56 per cent
 The reasons for losses or insignificant profits in some mills as compared with more satisfactory results in other mills were studied in great detail by the Bureau representatives and the conclusions reached from one of the In If
 A marked tendency to sell directly to retailers is pointed out in the re- port. This tendency is particularly noticeable among western mills. At | present tri1e over 51 per cent of l the total net sales of the concerns visited are made through jobber.. about 4 per cent. through commission houses. and 45 per cent. direct to ] retailers. Less than 1 per cent. are
 made abroad. The advantages and
 disadvantages of the different selling
 methods are dealt with in relation to cost and profit. and some interesting l observations are made on points that have long been disputed in the trade. ! The report states that there are cer- 1 tain trade abuses common to the l whole clothing industry, which have l their effect on the manufacture and
 sale of hosiery. These evils are can l cellat1ons, returns and allowances. ex- l tra dating, special discounts. etc. They
 have been prevalent for years, and .,s
 time goes on they are increasing ra
 ther than diminishing. All hosiery
 manufacturers complain of the prac-
 hces, but they have never taken any
 positive steps to eliminate them, the 1 report states.
 Three of the most important chap
 ters of the report are taken up with
 an exhaustive study of capital profit.
 and turnover, cost and profit by es-
 tablishments. and cost and profit bv | specified units Statistical tahIas