The Barre daily times. (Barre, Vt.) 1897-1959, 1920-12-09
BUSINESS
STAGNATION
THE REASON
Textil e Manufacturers,
After a Conference, Is
sued Statement To-day
Explaining Their Action
Claim Retailers Are
Reluctant to Do Business
on Lower Scale.


221h per cent in textile mills in New
England and New York state was fore.
cast to-day in a statement issued after
a conference of textile manufacturers
Approximately IS per cent of the in
dustry in this section representing
makers of both cotton and woolen
products was represented at the CON
ference, it was understood. The in
dustry employs about 100000 persons.
Such reduction, according to the
statement, would bring the wage
schedules back approximately to the
figures that existed a year ago and
would leave the wage standards gem
orally more than double those of 1915.
The present stagnant condition of
the textile industry made considera-
tion of wage reduction necessary,
it was stated, After explaining that
all sections of New England, as well
as New York state, were represented
by the manufacturers who took part in
the conference the statement said:
1T is evident from what has trans
pired in the past few months that
there has been an insistent and com
pelling demand on the part of the pub
lie that the cost of living should be
lessened by readjustment of the
prices of commodities entering into the
expense of daily life. This demand
has been and is, country wide, and 1t
becomes the duty of all those inter-
ested in industries which affect imme-
diately the cost of living to give Sc
rious consideration to this subject.
Manufacturers have been Teluc-
tant to make any radical changes in
wages because of its effect at time
when there has seemed to be 80 lit
tie willingness on the part of the re-
taller TO do business on a lower basis
of price, but conditions have recently
come about whereby this situation has
been materially affected and prices of
articles entering into the cost OF liv-
ing have been reduced to a consider
able extent Now that the process of
reimbursement is operated in the wage
earners' favor and living( costs are
still further TO be lessened as the pres
ent low prices of raw materials are
reflected in retail costs, the manu-
facturer can properly take some action
to lessen the labor cost involved in
production.
'.The refusal of the buyers to pur-
chase goods for the past four or five
months on a high basis of cost has
led to stagnation of the markets
upon which the manufacturers depend
so that at the present time many of
the textile mills in New England have
been obliged TO shut down; many more
are working on short time, and unless
something is done to remedy these
conditions unemployment will be in
creased and continued
therefore, il becomes the duty of
manufacturers to consider some means
of providing for a stabilization of
prices so that merchants may be put
in a position TO order goods without |
fear of further declines.
at is obvious that no one will buy |
the product of the mills until the va
rious factors, including labor, enter
ing into the cost of production, have
been reduced TO a point which repre-
sents to the purchasers of the mills
product a safe basis for doing bust
ness.
'gn order to stabilize conditions so
that goods can be purchased and busi-
ness done, Il is indispensably neces-
.sary, unfortunat though IL NAV be,
that there should be some wage reduc-
tion. The textile manufacturers have
given careful consideration 20 every
phase Of this situation, and have tax
en- into account all possible methods
Of bringing about conditions whereby
their plants may be operated without
any change in the wage scale. but they
find that this j. impossible.
Accordingly IL has been suggested
that a reduction Of TWENTY-FIVE and
one half per cent will aid materially
in stabiliEing the market This will
approximately re establish the wage
schedule of November. 1919. and win
leave warts in the textile industries
more than double the wages Of 1915.
IF thi~ rrduction Is made. il il
hoped that merchants win feel that
the factor of labor. ~ well a. raw ma
;eriaI costs have been 80 adjusted that
they win feel secure IN placing their
orders for merchandise. L
"ff this turns out 70 be the result.
employment can hc provided. and IL +
foped ard expected that business ean
rroeeef on this basis. II j. also hoped
shat the public will respond 70 this
.w~-essfr~I auH that rnaurrf ~ Tfrrr4