New-York tribune., 1920-09-11
Only Small Declines Cam Be
Expected, Manufacturers
Believe; Trade Has Been
Protected by New Figures

Just what effect on spring clothing
costs the new prices quoted by the
American Wooien Company will have
is question that manufacturers and
retailers find hard to answer at pres
cnt. While they are optimistic enough
to hope that the reductions made by
the American, company will bring at
least slight declines in clothing costs,
they believe there is still great deal
of uncertainty in the market and many
things may result before spring which
will prove determining factog.
One of the great uncertainties In
the manufacturing end of the trade is
the labor situation, which for several
ducers. The recent resignation of
Cohen, Goldman & Co., big manu-
facturer, from the Clothing Manu-
facturers' Association, has brought the
labor question to the forefront and it
may be that this action will serve to
clarity the situation somewhat. The
company offered its resignation after
it had announced its intention Of sban-
doning the manufacture Of clothing in
this city as q result of conflicts with
union labor over production. The COM
been seriously curtailed by an organ
lied "laydown' of shop employees.
Other manufacturers have complained
of sharp reductions in production in
recent years, but it remained for the
Cohen Goldman concern to take de-
cisive action.
Whether the company's withdrawal
from the New York field because of
labor conditions will serve to spur
union officials to use their influence
in increasing production remains to be
q inf hat
because labor is the big item in cloth
ing. costs greater production an hour.
will prove the most important element
In reducing costs.
The actual wholesale cost of the
cloth that goes into o suit or coat
really is only small item in the final
selling price, for suits made of three
yards of serge or worsted at SIS yard
often retail at $50 or more for the
reason that the actual labor cost runs
as high as $50 or $35.
Reduction in prices Of about 81 a
yard for the cloth, therefore, would
suit. Manufacturers, jobbers and
retailers, however, will undoubtedly
shade their profits this year and reduc-
tions of $40 or more suit are pos
sibie with labor costs and production
as at present. Should manufacturers
is believed further declines may be
possible.
The fact that clothing prices have
suffered severe declines since last
spring has discounted to a consider
able extent any further reaction that,
may be expected, and many manufac-.
turers believe that selling prices next
spring will be close to what they were
on spring lines at the midsummer sales,
as certain stability has been reached
which was strengthened by the new
quotations by the American.
Other uncertainties in the trade re-
volve around coming wool sales in Lon
don, which at present are shrouded in
mystery. The trade took it for granted
that the Americans new prices were
based on the present raw wool situa-
tion and might have to be revised after
the London sales.
Another phase is the lack Of true
comparisons Of new and old prices,
which leaves mixed opinion as to val
ues. No comparison with last springs
prices is available because there was
no opening year ago. And compari-
son on the basis of last prices for fall
and winter is considered by some mis-
leading. as heavyweights in normal
times are always proportionately
higher than lightweight fabrics for
spring.
On the basis of comparison with
present fall prices, then, many consider
appear on the surface. 8ne manufac-
turer said he believed the company
protected itself as we'll as the trade
in it's new quotations, but he felt that
further declines in piece goods might
be expected for the next heavyweight