New-York tribune., 1922-02-26
Cotton Mills See
Hope in Southern
Curtailnent Plan
a Cut III Production There
Would Aid Establishment
o! Sounder Conditions
in the Industry. Is Belief

NEW BEDFORD. Mass, Feb. 25.-
Indications that tho Southern yarn
mills will undertake curtailmcnt
policy is accepted in the New England
cotton manufacturing centers as fore
casting a drastic revision in Tho
policies governing the Industry in tho
South In that revision is seen the
possibility Of establishing sounder
economic conditions throughout the
entire industry.
While there have been all kinds of
stones afoat IN respect to "cut throat"
petition from tnJ Southern mills
against which the New England in
terests could not compete and South
ern competition has undoubtedly been
overemphasized as an argument for
wage reductions. the New England
mills have been obliged to stand aside
TO disastrous extent and watch the
South invade It's markets The reason
has not been one OF better article,
but solely that Of furnishing a lower
priced article. Credence is given to
stories that some statesmen for South
ern mills have even allowed the buy
ers to name the price. Whether this
is true or not, the result has been the
same. Extended over a period of
'--V'-oiA1 Nit CONSTANT cutting OIOtT INp
market has destroyed all basic values,
and prices, so far as a sound pYoduc-
ton value were concerned, have been
discarded.
What the South does to adjust this
situation is regarded as having as
much bearing on New England as the
movement downward has had. The
movement to curtail in the South is
still on too limited q scale to determine
49,
sees in any movement OF this nature
return to ratjonaism. q recognition
by the South tnat il cannot produce
indiscriminatcly and then offer the
output at price where the only con
sideration is TO move the over-produc-
tion.
The week has witnessed little change
in actual trade conditions. There has
been slightly hrmer price tone in all
lines. Cotton has improved in its
basic prices. and these levels have been
strong enough 10 curtajl quotations
under the market to marked extent.
Extra staple cotton felt the price i'm
rrovement more than snort cotton,
which braced earlier. Yarns pro-
vided more trading in the finished
goods than for several weeks. though
trading is still confined to small limits.
Fine cloth goods continued with in
curry ~l q low point. nc f&!l l.lNel
print cloth market furnished some
trade, strengthening the mills to the
point where they rejected bids under
the market Trading was hampored
by the holiday.
There has been no extension of cur
taiment since the Wamsutta an
Aounced last week it would operate on
a fve-doy schedule. Some Fail River
mills closed over the holiday for the
rest of the week. Mil Officials denied
however. that any curtailmeut policy
was expected to be adopted in Fall
River. 1t is estimated that tic mills
IN that city arc operating within from
Ia to 20 rer cent OF their normal
capecity. The drastic curtailmcnt Of
production IN such a large part of tho
New England industry, because OF the
strike in Rhode Island, New Hamp
shire and other places. is seen as
initiating against curtailment in the
centcrs not affected By a strike. The
production that these mills would turn
out. even If only running part time.
must be taken care of, and the natural
channels are the unaffected mills Of
New England.