The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-01-17
THE PRICE OF WOOL
Correspondence Between Gov
ernment Official and Head of
Wool Trust

The War Department authorizes
publication of the following state
I ment from the Office of the Director
Of Sales:
The Director of sales herewith
makes public correspondence between
his office and VIM. ". Wood, presi-
dent of the American Woolen Com
pany. regarding the sale by auction
and otherwise, OF surplus wool neld
by the War Department since the
signing of the armistice
The making public of the CORE
spondence follows the publication Of
an interview in which Mr.. Wood is
quoted as having said that the pres
ent method Of the War Department
in disposing of its surplus wool has
produced an effect in the prices Of
clothing" at the expense of the con-
sumer.
In a letter and telegram dated Jan
uary ,, addressed to E. c.. Morse, Dl-
rector of Sales, Mr.. Wood gave a re-
sumo of the interview mentioned. Il
recited that the Government recently
sold at auction in Boston. Australian
wool at $2.775 per pound, and that the
action of the Government in releasing
a part of this Australian wool to the
British government and selling the
rest from time to time at auction at
| high prices had produced an effect
IN the price Of clothing made Of fine
| wools.'
Mr. Morse, in his reply to Mr.. Wood,
said:
The War Department has offered
at auction to date approximately 493,-
100000 pounds OF wool; has sold. to
! date 354.0o0.oe0 pounds; and has
withdrawn from sale 139.Q00,000
pounds.
'.At the signing of the armistice. the
War Department had option on 1OO,-
o00, 900 pounds of Australian wool
together with an enormous surplus
held in this country. The War De
partmenu was anxious TO liquidate Us
wool business at the earliest possible
moment and was able TO cancel G6.-
100000 pounds from option on Aus
tralian wool. Soon after the signing
Of the amisrice, the War Department
requested the War Trade Board to re-
move all restrictions on importation
Of wool in order that United States
merchants and manufacturers Nigh;
have free access TO the wool supplies
of the outside world One Of the Wai
Departments general policies has beer.
to sell in the United States everything
which has a ready market. This has
meant, in the case OF wool, refusal OF
many offers which would have
brought greater financial return to
the War Department. but which
would have taken the wool out OF
the country.
The withdrawal prices were basec
not on cost to the War Department
but on the world S market price 70,
wool in most instances materially be-
low the worlds market price and OF
low grades Of wool as much as ~
| per cent below the worlds marke;
| price.
The records show that the Aneri
can Woolen Company bought large
quantities Of wool at these auctions
Your statement that in every sal'
! the Government fixes a price equa
to its cost is not correct lnaSmucn Z:
the Government did not consider COS
in fixing withdrawal prices.
In substantiating his claim, Mr.
More also makes public a section of
report made by A. w. Elliott, for
mer chief of the Wool Top and Yarf
Branch, Clothing and Equipage D1
vision, at Boston, in which Mr.. Elliot;
..ny1
nearly twice as much wool as wa:
consumed during the period from De
cember Is 1918 to July l, 1919, and
sold $4,000, 600 pounds more than was
consumed during that period. The
War Departments withdrawal price:
at all. tinres have been as low. if MOI
lower, than similar wool could be oh
tained for anywhere else in th<
world.