Evening star., 1924-09-10
TEXTILE INDUSTRY
SLUMP IS BATTLING
LuII in WooIen Buying Sure
to End in Time-Wage
Talk Causes Worry.
BY j. c. ROYLE.

Social Dispat tch to The Star
NEW YORK, September 10-'Let
thF buyer beware" has been a basic
principle of both law and business
Tor centuries. Nearly everybody
knows the meaning of its Latin
equivalent, 'cayeat emptor," but when
"mptors begin to caveat vigorously,
some manufacturers are entirely un-
able to comprehend it That fact
has been emphasized by the recent
complaints is to depression in the
textile industries. There is no doubt
that there has been depression in tex
tiles, but business men and economists
now are debating whether this pres
sure has come from within the in
duStry or without.
After mature conSiderat ion, many
merchants and business men have
come to the conclusion that in spite
pl ITS effect on the stock market too
nuch Importance was attached to
the purely business angle of the pass
ing of the American Wooden Co.'S
common stock dividend. The reason
assigned was depression in the in
duStry, but it is now believed this |
was Il reflection of unfavorable con-
dltions of the past rather than an un-
healthy outlook for the future.
Question of Price Levels.
The heavyweight goods openings !
last Winter undoubtedly failed to at
tract buyers 1t is pointed out, how i
ever, that the American Wooden Co. |
virtually sets the prices for the trade |
N nearly all instances the other |
manufacturers wait until the large |
company has named its prices and |
htLSe their own price lists accordingly !
J lie leading factor about month ago |
opened its lightweight lines for next !
year at an average of per cent lower |
than prices OF Il year ago. 1t is real |
iZed that no manufacturer is in bus- |
ness solely for his health, and if this /
level is too low to assure profits many !,
clothing dealers hold that the fault |
lies not with depression and lack of
buying, but in the judgment exercised |
in establishing price levels.
Plenty of Raw Wool.
IT is generally understood that |
American Toolen is amply protected |
rs to supplies of raw wool. and that |
these supplies were bought at time |
when the market was decidedly |
lower than it is at present. Even if
the lightweight lines did not attract
buyers, the company probably would |
be in a position to profit extensively |
by marketing the raw wool which 1t
does not convert into cloth.
Estimates place American wooden
operations at only 40 per cent of
capacity, but the reliability of these
is in some doubt in view of the fact |
that the Government estimates for
the entire industry in July showed IL
Der cent of wooden machinery en-
gagged and SAG per cent Of that making
worsteds.
Buying LuII Baniing.
It is true that retailers and jobbers
are buying conservativeIy and that is
one thing the manufacturers seem
unable to understand. There is not
q man. woman or child among the
10000, 900 inhabitants of the United
States who is not using cotton,
wooden or silk textiles in some form
The consumption of clothing is one
of the most stable things in industry.
More clothes are being worn than
ever before. These clothes have to
he bought sooner or later from the
m n who make them. They do not
have TO be bought all at once, however,
and that fact seems the basis of many
OF the reports of depression in
textiles.
One wooden manufacturer who has /
been loud in complaints has contracts /
for over 100000 pounds of yarn. but
he has not been given specifications
for it. He knows he will sell it and
get his money for it, but he is un-
happy because he is not going to get
1t all in a lump.
New Plants Being Built.
In spite of the complaints of the
manufacturers and dealers in tex
tiles. reports continue to pour in of |
the building of new textile plants
and additions in both the North and
South This trend is heaviest in the
South, especially in the belt where
hydroelectric power is available. APP
rarently this expansion is made on the
theory that the new plants will give
the manufacturers more to complain
about.
A spirited discussion as to wages Il
is now going on in New England
textile circles. Those plants which
have few goods on hand declare that
a reduction is an absolute essential Il
and suggest a 90 per cent cut Those
which have a large amount of goods
on hand feel that wage reductions,
with a probable drop in prices to
follow. would affect inventories un-
favorably and should not be con-
sidered. II
It is probable that no drastic action
of any sort will be taken prior to
election. II