Evening star., 1924-10-21
TEXTILE INDUSTRY
GETS. REAL SHOCK
Amoskeag Dividend Passing
Stresses Depression and
Price Discussions.
BY J. G. ROYLE.

spec III 'isPstn 10 1 ne StAT
NEW YORK. October 2l.-The cot
ton goods trade was sharply divided
today in its reactions to the an
nouncement that the Amoskeag mills,
one of the largest cotton manufactur-
ing plants in the world, had decided
to pass it's quarterly dividend. The
statements from New England, which
accompanied the announcement laid
stress upon the severity of the tex
tile depression. In other sections,
some close students OF the situation
profess to see various other consid-
erations In the move as we'll
PTce Cuts Expected.
According to the goods trade here.
the response to the opening Of the
Amoskeag Spring ginghams at prices
practically equivalent to those OF last
year has not been entirely satisfac-
tory. Buyers undoubtedly expected
a marked reduction of prices and
southern mills, which have announced
their Spring gingham prices have
made those reductions in many in
stances.
In the South the Lagrange Georgia
Cotton Mills started this week on a
24-hour schedule. Griffin. Ga. inter-
ests have formed a company to erect
new S1o0.000 mill and extended ac-
tivities are reported from other
southern textile plants. Hundreds of
mill executives. gathered at the
Greenville. 5. G., textile exposition,
report better outlook in the in
dustry.
Competition Very Keen.
1t is generally known that the
Amoskeag Company has paid divi-
dends in late years from surplus rath-
er than earnings. This. 1t is stated.
| & mil
petition, partly to high wages paid
operatives and partly to general
textile depression. The company en-
tered negotiations a month ago with
its employees for 20 per cent wage
reduction with assurance of five
day week. The operatives agreed to
ii 10 per cent cut, but the company
evidently deeming that saving in
adequate, left wages as they were.
Labor men See in the passing of
the dividend another step in the effort
! TO force reduction of wages in New
England. For example the Arctic
and Royal Mills of the T. T. r.
knight co. in Rhode Island have re-
sumed on full-time basis after a
long shutdown. with wages I2la per
cent under the former scale The
Thorndyke Mills OF Massachusetts
also have resumed on six-day
schedule. having deferred an II per
cent wage reduction until other mills
take similar action. They had been
on three day basis.
Goods Moving Faster.
1t Is remembered in connection
with tho passing OF the Amoskeag
dividend that the American Woolen
Co. took similar action about month
ago. Irrespective OF the objects
which dictated the move, the fact re-
10
of the leading woolen interests have
moved with increasing rapidity
prices have been advanced seven times
on mems spring goods and Six times
on worsteds and worsted and wool
ombnatton fabrics. A number of
lines have been sold up and with
drawn from the market. Whether the
Amoskeag action Will offer stimulus
to gingham sales remains to be seen.
Many textile men, however. declare
the call for ginghams at present Is
not sufficient to occupy all gingham
mills. and prices must be placed on
competitive basis In consequence
One of the chief blows to the Amos
keag earnings undoubtedly came
when the Tut-ankh-Aman vogue for
printed silks and cottons supplanted
ginghams in many markets. Reports
from many jobbing centers this Fall
state that ginghams still are in rela-
lively pood demand.
Although Paterson silk manufac-
turers are still troubled by the strike,
which has been under way for some
time, producers Of silk goods In gen
cral report an excellent volume OF
business. Raw silk dealings in the
oriental primary markets have been
heavy, as have the shipments of raw
silk to this country. In the new
Spring printed silks. the Oriental.