The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-03-27
HUGE PROFITS
we're MADE BY
TEXTILE MILLS
Union President Declares Raise
of 25 Percent Could Have
Been Given Men.
TWELVE PERCENT ON
WATERED STOCK MADE
Strike Now Spreading Into Law
renee Mill Center-Dead-
lock in Other Places.

BOSTON, March 26.-The New Eng
land textile strike situation takes on
new angle this week, with its exten-
tion to the important cotton and WOOL
en- mill center of lawrence.
Seven mills in that city have an
nounced a 20 per cent reduction, effec-
tive tomorrow, and some OF the opera
tlves have declared a strike. Another
mill has announced an indefinite shut
down beginning tomorrow and the
Lawrence Textile council has declared
this to be in the nature of a. lockout,
The big mills of the American Woolen
company have not Joined in the wage
cutting.
The largest plant affected is the Pa
clfic mills, employing some 10000 op-
eratives. The six others at which
wages are reduced employ n total of
about 1900. The wool sorter, affiliated
with the United Textile Workers of
America, and first to declare a strike,
are planning to picket the Pacific and
Everett mills tomorrow.
Mediation Stops.
The strike situation in New Hamp-
shire and Rhode Island, where thou
sands of operatives have been idle FOR.
many weeks, appears to be deadlocked.
The special state board Of mediation
and conciliation in Rhode Island has
been dissolved after several futile at
tempts TO bring about a compromise
between workers and mill owners in
the matter of wages and working
hours. Efforts to arrange conferences
between strike leaders and maufac4
turers have failed. Minor strikes arc
in effect at Lowell and Fitchburg.
Mass.
Go to Limit.
The declaration that the strike in
New England mills will go to the limit
to see whether the stockholders, by re-
fusing to cut fat dividends, can force
workers to reduce their meagre wages
was made by Thomas f. Mcmahon,
president of the United Textile Work
ers of America, today. Mr.. McMahon
was in this city on his way from Rhode
Island to the strike centers of north
ern New England.
Citing the case of the Pacific mills
at Lawrence he said:
''The strike against the Pacific mills.
which begins tomorrow morning, would
never have been called If the company
had treated its workers with a degree
of justice which would stand compari-
son with the company generosity to
It's stockholders. In 1921, a year of de-
preston, the Pacific mills paid to its
stockholders enough to have given
every one of its 10000 employees a 25
per cent wage increase instead of the
20 per cent wage cut they are trying
to force upon us.
Paid ~ Per Cent.
This company paid out 81, 2,400,0O In
dividends in 1921 and continued the
same rate of dividends in the first
quarter of 1922. They are paying u
per cent a year on their capitalization,
in spite Of the fact that the capitaliza-
ton was increased in 1919 by S5,00O.-
600 in stock dividends 80 1-3 per
cent increase. They have a surplus
of over $4,000, ,000-enough to pay the
entire wages Of their operatives for q
year without a penny Of other income
and at the end of the year they would
have a surplus remaining equal to
more than % per cent OF their capitali-
cation
In 1921 the Pacific mills made a
profit OF oyer cents on every dollar
Of their sales, not much below their
average profit for the war years.
Hungry for Dividends.
THE trouble with the textile indus
try Of New England is that it has cap.
italized its huge war profits by stock
dividends. Now, with sales slack. the
mills determine to increase the margin
OF pront on their products so that divI-
dends as big as in the war years can
be paid.
"TThe figures which have given VIII
stand the most rigid test Tor accuracy.
They were secured for the Tinted
Textile Workers in the course OF an
Investigation Of the Industry which We
are having made for use by the Labor
Bureau, Inc, OF New York and Boston.