The Barre daily times. (Barre, Vt.) 1897-1959, 1921-03-29
PEERLESS KNITTING
MILLS CO.'S PLAN
Company Asks Preferred Stockholders
to Give Waiver on Dividends for
Two Years and Consent to
Mortgage on Real Es-
state and Equip
ment.


The Peerless Knitting Mills company
recently sent out to stockholders re-
quest for waiver OF dividends on pre-
ferred stock for two years, asking also
for consent, which is necessary under
provisions of the bylaws, to place a
mortgage on real estate and equipment
should the same be necessary to take
care of contingent liabilities.
Industrial conditions during the past
year have been unprecedented in the
history Of America.
The sudden slump in commodity
prices seriously impaired many OF the
strongest manufacturing concerns.
The knitting mill business is what
is known in the trade as a seasonal
business and contracts for cotton yarn
during the boom period whic.4 cnlmi
mated about year ago had to be
placed many months ahead and deliver
les under these contracts taken at the
option of the spinners,
The cotton and wooden yarns placed
under these contracts is of different
classes according to the value of the
finished garment and yarn which was
then selling at from 20 cents to $500
per pound, has present price OF from
2S cents to $3.50 per pound.
Before the Peerless Knitting Mills
company could get their heavy inven-
tory turned and the finished goods
sold. a so.ealled CONSUMERS strike
came on Retail concerns stopped buy
ing and the mills were hung up with a
heavy inventory, orders cancelled; and
a shrinkage of about 30 to 100 per cent
on this inventory.
Further than this, the Peerless had
Sl50.000 worth of orders cancelled, the
total being made up Of relatively small
orders from concerns who had bought
goods from them for number of
years. In the judgment of the man
sgement it seemed better to assume
the loss on these orders than 10 enforce
collection. at considerable expense
with consequent loss OF good will
and much future business.
All manufacturers, iobbers and re-
tailers OF cotton and wooden goods
have been affected by similar con-
dition, a condition as said before,
brought about largely from the reae-
tion against high prices and an orgy
Of spending based on cheap money in
fiation This reaction and slump in
business was expected by those in
close touch with economic conditions,
but ii was believed thRt it would be
more gradual and its length of such
duration az to enable the large indus
trial concerns to adjust themselves
without serious loss TO their stock
holders and employees. but notwith-
standing this condition, il is believed
that inasmuch as they were the first
to suffer from this readiustment of
prices that they will likewise be the
first to recover and benefit from normal
conditions.
In the readjustment of the affairs Of
the Peerless Knitting Mills company,
creditors. Boston bankers, directors and
all concerned have manifested a splen
did spirit Of cooperation in an endeay
or to solve the problems with the least
damage to all concerned, and il is in
this spirit Of cooperation that the
company now asks the preferred stock
holders in Barre and elsewhere to make
a small personal sacrifice. not large for
each. but of great ultimate benefit TO
the company (which is nothing more or
less than the stockholders themselves
in the belief that sound business con
ditions, based on sound values, viii
eventually benefit them and reward the
city of Barre for its confidence and
support Of this local industry.
If any stockholders have not already
signed the slips sent TO them thev are
requested hy local officers 81 the com
pany to do so at once as il will great
" help the company in its plan Of
financing.