Evening star., 1924-10-08
textile INDUSTRY
IN CHAOTIC STATE
Jumps in Cotton Prices Battle
Buyers-MiIIs Even Get
Goods From Abroad.
Special Dispa itch 10 The Star.


tainty and lack Of confidence are the
outstanding features of the textile
situation throughout the country at
present. AS result reports and ru-
mors, most of them without founda :
tion in fact, are sweeping from one
section to another. The fact remains
that every man, woman and child in
this country Is consumer of tex
tiles to "a greater or less extent, and
those closest to the situation firmly
believe that when some of the uncer-
tain factors have been eliminated a
large activity in the industry will re-
suit.
Fluctuations in the price of cotton
and the extent of the crop is one
such factor. Governmental reports
as issued today and previously this
year nave been disturbing element
The way these reports are computed
and the frequency with which they
have been issued have given rise tc
a situation which has disrupted mil
schedules.
Buying Policy PuxzIins.
The rise in cotton prices in the las
few weeks left textile manufacturers
undecided whether to cover their re.
quirements at current levels or not
Some mills ran SO short of STAPLE
that they were forced to borrow from
those better supplied or to buy spot
at a premium for immediate delivery
Some mills holding ample supplies
it is known. have reaped a comforta-
bic protit-in few cases a cent a
pound-from such lendings.
These facts, it is believed, gave
rise to reports that one OF the largest
textile manufacturing companies had
sold s3o.000,000 worth of cotton
bought previously at lower prices at
heavy profit, and that therefore
these mill did not care temporarily
whether they operated in full. in
part. or at all. Careful checking up
of this report showed its extreme i'm
probability.
One dealer figured that. this cotton
would reach the enormous amount of
100000 bales. 1t els claimed that the
company could not have financed such
n purchase even at lower prices pre-
vsiling earlier in the year. even If its
bankers had been willing to stand be-
hind it. Dealers in Southern mar
kets have been unable even by care
ful checking TO trace trades of any
such magnitude
Some mills undoubtedly covered re.
quirements when cotton broke under
23 cents. but ii is more than doubt
ful, If. in view of the uncertainty
as to the crop, they have been will
ing to let go much of il.
Wages Disturbing Factors.
The wage situation in New Eng.
land has also been disturbing fac.
tor. Manufacturers have repea edly
declared that wage cut was essen.
tial to meet increases in cotton prices
and Southern competition. Southern
mills did not increase wages wher
the Northern plants took that strT
last year. Nearly every manufac-
turer, however, has held off to allow
others TO take the first step. since
whoever started the move would bear
the brunt of the fight while Others
would reap the benefit.
The Amoskeag Mills announced a
reduction of 10 per cent. but Cancelled
it this week on the grounds that the
jump in the price of cotton had made
10 per cent cut insufficient. Wha,
bearing, if any. the holding back OF
o:her mills may have had on this de-
cision is a matter of conjecture in the
trade.
Buying Goods Abroad.
In the meantime, jobbers and con.
sumers have not been willing to wait
and dicker. They have found they
could get the goods they want from
England and GERMANY and many OF
them have done so. This is noticeable
in woolens and worsteds as we'll as
in cotton goods. One of the largest
mail order houses has ordered half e
million suits of clothes from England
New York and Philadelphia retailers
have imported shipioads of blankets
and thousands of yards Of English
cottons have been sold to America r
consumers.
1t is doubtful if this trade would
have gone abroad had not the Amer
lean textile industry been in a dis
rupted condition.
Neverthe' ess. New England cotton
mills are now estimated to be oper-
ating between 65 and 30 per cent OF
capacity and wooden plants are
doing equally well. The South per-
hars is in even better condition
Many cotton and wool growers make
no bones of expressing the opinion
that some of the pessimistic textile
rumors have been started purely for
the effect they might have in keep
ing down the price of raw materla s.
That. however, undoubtedly is a
prejudiced view which does not take
into consideration the visSiss1tudes
which textile men think imminent.