The New York herald., 1921-03-02
AMERICAN WOOLEN
SHORTAGE S74O,197
Report for 1920 Reflects Ex-
tent of Years Depression in
Textile Industry.

The extent to which the textile indus
try was hit by the depression Of last
year was disclosed yesterday in the
annual income account and report of the
American Wooden Company for 1920.
which showed that it failed TO earn Its
full preferred dividends after paying
taxes, depreciation and commissions on
It's common stock issued during the year,
but had. on the other hand. a deficit.
after preferred dividends, OF s740,197.
After payment of S1,983,333 in DIVIDENDS
on it's common stock the company's
deficit was increased to s2.723,53o In
addition to that deficit in the income
account OF the company the item of
$3.50, 900 for reserve for depreciation Of
inventory. which was in the balance
sheet of 1919. did not appear in the
balance sheet made public yesterday.
The following table gives the salient
features of the 1920 income account as
contained in the annual report:
1920. 1919.
Net profit after apply
ing reserves. -. se,s55, ,25a sl55,5Is.Msi3,
Dcprecia ton. ......... 2,22s, ADJ J,too,ol |
Insurance reEerve...... oOU,W'O
Pension fund reserve. ..... 0UU,OoO
Commission and ex-
penseS OF com. stock
issue and provision
for Fed. taxes for
previous ye2rs....... 2.567,Oj ....'
s2,o5a,8oa $40, ,77o. so4
Preferred ofvidsnd.... 100000 2,Sc0, 900
Common dividend...... 1.es3. 3S3 zoo cog cog
Deficit. ................. 2,I23,530 'iIfo,s so4
Surplus.
THE disturbed conditions Of the wool
market during 1920" w. NJ. Wood. the
company's president said In his report.
ARE believed to be without precedent
In the industry. The year opened with
prices on an extremely high basis. The
continued demand for fine woods forced
them up to still higher level until the
peak was reached In April. The first
sharp break in prices occurred In May.
Heavy cancellations of cloth on an url-
precedented scale curtailed the demand
for wool and further declines occurred
throughout the balance OF the year The
year, however. closed with distinctly
brighter prospects.
"The year began ausplciously for the
company With the opening Of the
heavyweight season in February orders
were received which were sufficient to
keep the mills busy for most Of the
year. In the latter part of May. how
ever, sudden break in the wool market
led to an impairment of confidence in
price and the demands of the public fell
OH. linen came the cauceIldlion U q
large part of the outstanding orders.
Early in June the company began to
curtail production. One by one the mills
were put upon short time basis, due to
cancellations of orders on hand and to
lack OF new orders being received. Prior
to August ! practically all mills OF the
company had ceased to operate.
THE company opened up it's spring
lines on September 3. about two months
later than usual. The prices quoted
| were substantially lower than those pre-
vailing earlier in the year. A further
decline in wool prices and the receipt OF
additional cancellations followed. This
condition n.ccssitated curtailment OF
production for the balance Of the year
to such an extent that only a few mills
were In operation for few days q
! week"