New-York tribune., 1922-01-22
Price Problem Bic
In Mems Clothing
Field, Says Goldman
Sees Protracted Period of
Declining Prices Ahead,
but Opportunities 10
Increase Real Profits

How to make money on falling
market is the chief problem confront
ing the mems clothing manufacturing
Industry and retailers as well, in the
opiston cf William Goldman, of the
manufacturing firm of Cohen, Gold
man & Co. Of this city.
In general way Mr.. Goldman be-
lieves that the price trend for the
next fifteen or twenty years will be
downward, but that this in itself is
Of an optimistic character. Il have
found" he said, after years of ex-
perience, that with ordinarily good
business management as much or more
money can be made and held on a
gradually declining market as on
rapidly rising one. / say this for two
reasons: first, that we have all learned
within the pas. year or two that most
OF the profits made on rapidly rising
market are paper profits that cannot
be held; and second that gradually
declining market presents opportuni-
ties for savings in production costs
over estimates made months IN ad-
vance"
Reverting from the future to the
present, hr. Goldman expressed the
opinion, based upon an exhaustive sur
vey, that despite the pcssinlism and
gloom last ear the volume of clothing
distributed through retail channels had
been close to so per cent of normal The
extremely large volume distributed in
1919 and 1920, he said, had resulted
from the demands for civilian clothing
made by the demoblized soldiers. The
large volume this year, in spite of the
depression. resulted from the letting
loose of latent demand that had been
held in check by high prices. Much Of
TINS latent demand still exists. he
added. ll.t Il viii take lower prices 10
orln2 1t into action.
Hints Lower Prices
Mr.. Goldman ntimated that lowe
prices VIII ensue from reductions in
labor costs, which are still higher in
the clothing industry in proportion to
the cost of living than in any other
industry, from close figuring on costs
which arc becoming more accurately
traceable with the stabilization of mar
kets.
In connection with profits he said:
81 believe that all business men have
now come to realize that a broau-
minded policy as regards profits is going
to contribute toward securing wide,
distribution, which in turn Will yic.d
better results in dividends than a too
strong Nlsistence on liberality in mark
ups. On the other hand, If far-sighted
policy is not carried out in this respect
or if we in the clothing and WOODEN in
dustries lack the resourccfuness to
bring down our costs sufficiently to
broaden our market, l think we may
all look forward to a difficult and dis
appointing year"
Opposes Quality Sacrifice
Mr.. Goldman cautioned against at
tanning low prices through the sacrifice
of quality. 81 want to make it clear"
he said, IN speaking Of the large dis
tribution of goods this year, chat
Some goods sold better than others
and some sections of the country en-
loycd larger distribution than others.
While the volume of business done this
year is gratifying in many respects
there is one aspect of the present sit
uation of the retail trade throughout
the country that is not so favorable
The suit business has not been salts
factory this fall and a great many
tailers in their anxiety TO meet price
competition have accumulated some
slow moving merchandise, because
while the consumer has been looking
for value ana has wanted good cloth
i'g at low price, he has tried to make
D re of quality and has rasscd the
+ .eaper goods by because they were
# Indifferent value.
"All clothing costs money nowadays,
and the consumer, with better judg
1nent than many of us in the trade has
invested his money in fabrics of quail
ity. To my mind this situation also
indicates that those workers that are
now empoyed are remunerativcly en-
ployed. 1t indicates also that the
business for this year will center
largely on medium grade goods of good
quality and that the distribution will
be below normal in both the cheap and
the high ends"