Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-03-03
PRICES OF WOODEN
GOODS IN BALANCE
Today's Meeting Of American
Wooden Company Held
Most Far-Reaching.
BY j. G. R0YLE.



wool dealers, clothing manufacturers,
retailers and sheep men for several
weeks have been wondering whether
the producer OF some of their gold
ton. They are worried over the
wooden textile situation and are
watching closely for developments in
the affairs of the American Wooden
Co., leading interest in the manu-
facture of wooden fabrics. The an
nual meeting Of the great concern,
held today, may serve to indicate
what is to happen to production and
wool and cloth prices.
The first indication of changes in
the affairs Of this company came
when the directors passed the divi-
dend on the common stock in Septem-
Der last. This was followed by the
resignation of William NJ. Wood,
president of the company since it's
organization, &c years ago. Cornelius
Wood, last Of the family to be con-
nected with the management, retired
early in February.
Losscs Heavy in 1874.
Then came the annual report of
the company for 1924 showing a loss
from manufacturing operations of
34.025,S65. The deficit for the year
was swelled to nearly s12,000,000 by
the payment of 100000 in divi-
dends and allowances OF NOR than
$2.s00,o00 for depreciation. q was
the second time in It's history the
company had sustained a manufactur-
ing loss, the first coming in 1913,
when the Underwood tariff law upset
the industry.
80 Moi hoe a
criticism among stockholders and
others. But men in close touch with
the textile situation see nothing oc-
cult about the situation. It is ad-
mitted textiles had a bad year. The
Wood administration has been severe
ly criticized for the development of
Shaw Sheen Village, a model COM
munity constructed around some of
the modern plants of the concern. The
small stores supplying the community
are said to have been financed by the
Wooden Company, but 1t has yet to
be demonstrated that this involved
any undue financial risk, or whether
the whole thing was not a wise VEN
ture.
Goods Trade Unfavorable.
The tremendous loss sustained, in
the opinion of experts. is to be at
tributed mostly to unfayorable mar
ket conditions in the wooden goods
trade. There has been no criticism
of the buying policy of the company
with respect to raw wool. The COM
pany is said to have laid in large
stocks when raw wool was at its low
point last June, and it was common
talk in the wool trade that the COM
pany had the largest stock of cheap
wool in the country when prices
started upward.
The big losses developed apparent
ly through the inability of the plants
to maintain operations at anything
like a capacity rate. Last Summer
output was only 40 per cent of ca
pacity, and not until late in the year
did the rate go up to 70 per cent.
With it's huge capitalization and it's
expensive organization. this fact APP
pears to have accounted for the fall
ure to roll up profits.
The big concern now has changed
administration. Much confidence is
expressed in New England as to
the future OF the company. but there
is no disposition in Boston financial
circles TO anticipate resumption of
dividends on the common stock. Con-
ditions in the goods trade are not
especially promising. Wool quota
tions are high and resistance to
higher clothing prices is strong. But
the company has S62,eo0,000 of quick
assets and should be In a position to
secure a full share of business when
demand revives.
Some clothing manufacturers and
dealers frankly say that the retailers
are to blame, that they have taught
the public to wait for bargain and
special sales. so that now the buyers
are convinced that all they have to
do to get goods cheap is to wait.
Oftentimes. instead of waiting, pro-
spective customers do without
In the meantime contracting for
wool in the West is practically at a
standstili, since growers will not ac-
cept lower figures and buyers and
agents will not stock at present
prices.