New-York tribune., 1919-02-11
Textiles
Government Policy on
Wool Held Partly to
Blame for Idle
Mills

W9ollen mills are not willing to
begin operations requiring the use of
wool purchased now until there is a
real stability in the raw wool markets.
At the government auctions in Boston
last week about half Of the offerings
were Withdrawn because the bids did
not reach the minimum price set by the
government. Under such conditions the
prices paid for raw wool at the auctions
cannot be taken as real market prices,
ana there is no assurance that they will
continue for any length of time.
In England the situation has been
handled differently and more eQuitably
IN the opinion OF mill men here. Over
there the government, as soon as the
armlstice was signed, began the alloca-
ton OF It's stocks of raw wool at a fixed
price The mills there immediately
began work on civilian production,
knowing what their raw material was
going 10 cost them.
Government Policy Called Unwise
"The governments unwise merchan-
dlslng policy in regard to raw wool and
unsatisfactory settlements of cancelled
contracts is as much responsible for
the present idleness of one third of
the country's woollen looms as is the
labor disturbance" said one mill owner
yesterday. His opinion is backed up
by similar statements from a number
of other owners Of weaving mills.
In this country the government owns
probably 100000, 900 pounds Of wool,
which IS about half Of our normal yearly
consumption. Little of this wool has
gotten into the hands of the mills
which could use it. The English gov
ernment has an approximately equal
amount of wool on its hands, much of
1t being fine Australian wool, and the
supply of wool in the free markets of
South America and South Africa brings
the total wool supply of the world up
to the highest point it has ever
reached. The new American wool clip
will reach the market about July !.
Weaving machinery in England has
been running steadily during the war
and now requires replacement and re-
pair. This viii cut down the English
consumption of wool for this year.
France, 1t is estimated, Wl be able to
normal wool consumption by virtue of
The fact that her weaving districts are
denuded of machinery-another stamp
of the Hun. Italy will have difficulty
IN financing cloth production, and Ger
many probably viii be rationed for
some time to come. In veiw of this
the world demand for wool may easily
run below normal, and yet the supply
, IS greater than ever. Mill men say,
therefore, that the price cannot do any
thing else but come down, and that it
VIII come down when the English free
euctlons open up II a few months and
raw wool begins to come in from South
America and South Africa. This win
be about July /. it is estimated
II the American government then
has on hand this great supply of wool,
j 1T may suffer tremendous loss
through depreciation in price What
the Woollen mill men here want is
some system that will enable them to
get this government wool right now at
stabilized price and so begin active
work on civilian production at once.
They argue that it would be better for
the government TO take q small loss
now tnan greater loss later on.
Too Much Khaki Yarn
Much dissatisfaction over the cancel
lation Of government contracts arises
from the manner in which the govern
ment IS making adjustments, or, rather,
failing to make them, with the mills
which had bought quantities of khaki
warn with which to proceed on their
government contracts. Supply Cir
GUAR III, issued by the General Staff
two days before the arlnistice was
signed, stated th2C IN case contracts
were cancelled the government would
take over raw materials on hand at
cost, plus the inward handling charges
and such portion of the overhead ex-
penses as were directly applicable.
Under this ruling the government
would have taken over the surplus
yarn on hand with no loss to the mills.
However, this method has not been
pursued, it is said. The mills do not
want to keep this Khaki yarn, since it
cannot be used in their civilian pro-
duction, and it has no outside market.
Brokers who tried to dispose of some
Of it declare that it is drug on the
market. Considerable capital is tied
up in this almost useless yarn, and un-
less some way is found to adjust the
matter some Of the smaller mills are
likely to go into bankruptcy.
In England this khaki yarn on hand
when the armistice was signed was
used as a warp in wool-filled goods
from which civilian clothes furnished
to discharged soldiers are made. The
British government furnishes every
soldier with suit Of clothing upon his
release from the army. There is nc
such an outlet for the yarn in this
country.
The raw wool and government KHAKI
yarn situations are holding back pro
duction right now, and both are directly
the result Of government policies, it is