New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-05
Clothing Plants
Cut Forces as
Buying Stops
Men Refuse TO Pay High
Prices for Ready Made
Suits and Many Manu-
facturers Close Down
New York Hardest Hit
Retailers Forced TO With
hold Orders for Fall
and Winter Garments

Retailers believe that the men of
the country will buy fewer ready-made
ovcrcoats and suits this fall and win
ter or Will refuse to pay the high
prices that present. wholesale quota
tons indicate and therefore have with
held the ordering Of fall clothing to
such an extent that several of New
1ork's manufacturers, including two of
the largest, have curtailed production
1t was announced yesterday that
Schwartz Jaffe, Inc, employing more
than 1000 workers in their two large
factories at 55S and $50 Brodway had
lid off about 25 per cent OF their en-
ployecs. j. Friedman e. Co., 70S Broad
way, also cut down their working force
by large margin.
For some time the smaller manu-
factories to 558 and $50 Broadway, had
laid off about % per cent of their en-
plants two weeks ago. The reduction of
working forces in mems clothing plants
&iso has been reported in Rochester,
Philadelphia, Baltimore and Chicago, al
though to less extent than in New
CORK. When the uncertainties Of the
present situation became apparent the
retailers hit the local manufacturers
harder than those of other centcrs in
retaliation for the raising of prices
last year after the retailers had placed
firm contracts.
Question of Price Paramount
The fall selling season in mems
clothing usually begins in April, when
the retailers begin placing orders for
suits and overcoats to be delivered to
them in July, August and September,
Tor sale to the consumer beginning in
August and running through the win
tel, This year the response to the first
opening of fall lines" by the manu-
facturers was extremely light.
The question of price was para
mount in the disagreements between
buyers and sellers. In most cases
prices were as high as they were for
spring clothing sold by the manufac-
turers before Christmas OF last year.
| he retailers asserted that reductions
should be made. A few houses made
slight price concessions without stimu-
lating business. Later in the spring
retailers and manufacturers met in
conference in Atlantic City and de-
cided on a policy by which the manu-
iacturers agreed to guarantee prices
on overcoats until December / and on
suits until November Is. BY this agree
uSi-C INC lcldlIcIS were 10 receive re-
bates to the extent of any reductions
made before those dates.
This failed to bring the retailers
fiocking into the market and aroused
the ire of the Department of Justice,
represented by Howard Figg, Assistant
Attorney General in charge Of the
profiteering prosecutions. Mr.. Figg
has stated that price guarantees are
but lures to lead the retailer into
placing orders for high priced mer-
chandlse on declining market.
To Close Plants
Nearly all the large clothing pro
ducers are understood to have finished
cutting the garments for which they
have orders and as soon as these gar
ments are tailored and completed the
plants vii! be closed unless the re-
tailers come forward with more orders.
The manufacturers assert that the
retailers are working themselves into
hole by refusing to place adequate
orders now and VIII find themselves
short of goods when the consumer de-
mand comes in the fall and winter.
They are positive that business VIII be
good later on, but are unwilling to