New-York tribune., 1921-01-11
W. NJ. Wood Announces
Company's Intention to-
Dispose of Surplus Stock
of Fabrics at a Loss

Law RENEE, Mass. Jan. 10. - The
American Woolen Company, which has
oeen pursuing an independent course
IN aeailng with labor, yesterday an
nounced wage cut of 22 1s per cent.
TO become effective next Monday. This
WILL place the fifty mills of the COM
pany in New England, New York and
Pennsylvania. employing about $4,000
workers, upon approximately the same
wage footing as other textile mills that
put ~ n per cent wage cut in opera
ton on December 90
IN making the announcement William
M. Wood, president of the company.
stated that Notwithstanding the cur
tallment OF mill operations cloth had
accumulated and that in an effort to
move this surplus lower prices would
be made to buyers.
The company" he said, "has been
unable to resell it's cancelled orders or
TO secure new orders for what little
cloth we have been manufacturing.
we have been waiting for business,
put no business comes, so we have de-
clded to do something to start busi-
ness, If 1T can be done.
First, we propose Immediately to
sell the cloth on hand at greatly re-
duced prices. This will be done at a
substantial loss to the company. but
we must meet it. 1t will be the COM
pany's loss alone. 1t will in no way
AFFECT wages. Then we propose i'm
mediately to make the biggest effort
we have ever made to get business to
run our mills.
But we are convinced our best
efforts Will not bring business unless
we reduce the prices on our new sea-
hi
duce not only our profits, but our costs
as well, and among others our labor
costs. If we do not do this we mus
close our mills.
$50 we have decided to figure our
costs for next seasons goods at a rate
of wages lower than the resent. We
hope with prices thus fixed and our un-
usually strenuous efforts to get busi-
ness to attract the trade so that we
can sell cloth enough to open up our
mills and run them on full time. The
next few weeks will tell the story.
I'VE therefore announce that the
rate of wages III all our mills will be
fixed, beginning Monday, January II,
rate. We have hoped to avoid this Ne-
duction in wages, bit we are convinced
that it cannot be done.
"We believe that the action which
we have taken will meet your approval,
for we believe it to be really in your
interest, in that it will, in our judg-
ment, avoid shut down and give to
the workers steadier and more
permanent employment"
Mr.. Wood added that he was not
able to announce a date when normal
operations in the mills will be re.
sumed.
The wage cut announced by the
American Woo'en Company, together
with Mr.. Woods statement that clotf
duced prices, is expected to upset con.
ditions in the woolen and worstee
goods trade until these prices are an
nounced and the American company
the LARGEST in the field and the recog
nized trade leader, makes new price;
on fabrics to be used next fall. These
goods are expected to be offered withir
the next two or three months.
The company disposed Of it's sur
plus overcoating at auction last monti
at prices about equal to the distress
market for similar goods. At chat time
II was rumored TINT the company had a
large surplus of suiting materials
which probably would be held for regu
lar sale or carried over for next fall
The statement of Mr.. Wood was taker
to mean that another auction is posi-
bic or that the company will make
new low prices and attempt to sell the
goods through regular channels
READING, Pa. Jan. 1o.-The Read
ing Iron Company posted notices to
day that reduction in wages woulf
be made in ali its departments, ettcc
tive next week. The new rates Will p'
announced later The Crane lror
Company, Catasauqua, Pa, announcee
a ware cut Of 20 per cent, effectlv'
January 16.
WORCESTER, Mass, Jan. lo.~~f'e
Whittall Carpet Mills, in South "orces-
ter, one of the biggest plants ~ tAe
kind in the country, are to be closee
indefnite'y t unless the weavers accep
a cut of Is per cent in their pay. o ah' ~
aro. but the employees are obJect'hs
to it.