New-York tribune., 1920-09-14
Wood Confident of Enough
Orders to Assure Rapid
Recovery; Pessimism Is
Not Wholly Dissipated

With the resumption OF preliminary
operations in the large mills Of the
American Woolen Company in Law
renee yesterday interest in the textile
trade shifted to that end Of the bust
ness as a possible indicator of future
business. The trade felt that the de-
gree of mill activity would give a true
line on the American company's view
of the present unsettled situation.
The attitude Of the n orkers will also
be keenly watched by those who con-
tend that liquidation of labor is the
key to lower living costs. Many believe
that the time is nor yet rip" to expect
material wage reductions, but they
would not be su u.prised if the question
were raised in some of the wooden mill
districts which, from present indica-
tions, will get little business even with
the reduction in prices. 1t is generally
agreed that cautious buying and expec-
tations of lower prices have not been
altered by 81 gns of revival of the last
week.
nose VINO SCaIl lue SITUATION IOT
signs of labor liquidation point to the
proposal submitted to workers by IN
upstate factory to vote on a self-im-
posed reduction in wages to permit the
company to submit a low bid for a
large government contract as an indi
cation Of what must eventually come.
The result of the workers vote in this
instance has not been made public.
Reports from Lawrence yesterday
indicated that mill employees hailed
with delight the approaching end Of
two months of idleness. For some time
there has been preliminary activity
getting out samples and small orders,
it is said, but real work will begin
this week with the degree of future
activity depending on the number Of
Mill officials say the amount of busi-
ness now in sight is satisfactory and
indications point to a successful sea-
son. w. NJ. Wood, president of the
American, in an interview upon his re-
turn to Boston after the opening of
spring lines here, said he was gratltied
with first orders.
indications are that we can sell
every yard of cloth we can make in our
worsted mills" he said. He predicted
rapid recovery from the present slump
and was confident that foreign compe-
tition could be disregarded He was
not so optimistic over reduction in
clothing costs, however, and pointed
out that the cloth for suit-three and
third yards-that cost $3.50, would
cost, AS result of the present 90 per
cent reduction, $11.02. "lf we should
give it away, 1t would not make much
difference in an $50 suit" he added.
While American Company officials
are optimistic Of the worsted end Of
the business, many wooden mills are
saSd to regard the situation doubtfully
and even question the advisab bility of
offering anything, fearing that they
would get just about enough business
in the trade estimated the new busi-
ness IN sight as hardly more than
enough to keep the American Company
mills busy, these comprising about 20
per cent of the industry.
The opinion prevails that a large
part of the woolen machinery will not
resume operations because of small
orders ut current quotations, and many
orders placed now will probably not
be delivered. Credit risk, more i'm
portant now than for some time, will
also tend to curtail selling, it is con-
tended.
Some of the small orders IN evidence
are plainly made by holders of large
stocks, who hope to freshe up their
lines and clear away surpuses before
enlarging commitments.
One phase of Mr. Woods remarks
that interested the trade was that about
lack of foreign competition. 1t is evil
dent that British clothing prices are
TOO high to compete in local markets,
and Jobbers who have neglected Amer
ican-made fabrics for years were in
attendance at the American Company
opening, and indications pointed to suf-
nclent orders in the fine goods field to
s1eaoy demand, because they are much
lower here than abroad.