Evening star., 1925-01-28
COLLAR MAKERS
TO REDUCE COSTS
Cheaper Prices to Consum-
ers Not Yet Indicated by
important Merger.
BY j. c. ROYLE.


Special Dispatch to The Star. 49,
NEW. YORK, January 2S.-Although
this Is free country as witnessed
by the fifteenth amendment to. the
Constitution, practically everybody
resident in the United States wears
som ebody's collar. As a result of the
recent merger of Earle & Wilson
with Cluett Peabody & Co. about rs
per cent will wear the collars of the
latter firm, according TO retailers
who distribute those products.
Complete details of the consolida-
tion and plans for the future haye
not yet been worked out but the
trade sees In the consolidation the
effect of number of factors. Fore
most of these is the recent settle
pent out of court of the suits
brought by the Phillips Jones Corpo-
ration which controls the Van Heusen
semi-soft collar patents, for infringe
ment on the part of other collar
manufacturers. AS a result of the
compromise reached, the defendants
have finally determined just where
they stand in regard to manufacture
and sale of the popular semi-soft,
web collars
Absorption Plan Denied,
Officials of the Phillips Jones Co.
have emphatically denied that the
merger is a" move preparatory to the
absorption of its main competitors by
their Organization. Some jobbers and
retailers profess to see in the mer-
ger the abandonment of the ,starched
collar field by the Earl and Wilson
plants and the active merchandising e
of the laundered collar under the
Cluett- tt-Peabody trade mark.
The DODularitV Of tho cotoraJ lam,
dered collar to match the shirt gives
rise to speculations as to whether
manufacture of shirts under the mer-
ger VIII not be attended by an effort
TO popularize- the matching semi soft
collar.
Fewer Brands Carried
Another factor in the situation has
been the tendency of retailers in large
cities to seek smaller quarters. This
involved curtailment of space which
might be given to display of more
than one brand. With the merger 1t
becomes possible to make one central
display which will include the more
popular style names OF. each line. and
allow more complete size assort-
ment TO be kept in stock.
ECONOMIES undoubtedly can and
VIII be erected as result of the
merger Heretofore both concerns
have maintained branches and fac
tories In some of the. same cities.
Each has factories or branches in
Troy, New York City, Chicago. Bos-
tom San Francisco. Atlanta, .Cgeve-
land Dallas and Los Angeles In ad =
dition, Cluett- eabody has branches
in Baltimore, Montreal. Cincinnati.
Denver, Detroit. Kansas City, Toron-
70, Minneapolis, Philadelphia, Win
nipeg. Pittsburgh, st. Louis and Seattle
Some of these branches surely will
be abandoned under the new plan of
operation.
Saving In Advertising
In addition to the cutting down or
sales and Office forces, warehouse
space and other rentals, great saw
ing is expected to be effected in ad-
vertising. The features of fewer
handsome collar models will excite
envy in the masculine breast, and the
advertising campaign will be further
centralized and intensified
Labor costs also probably will be
reduced as a result OF the merger.
Cotton is well below the high point
of the last year. although linen costs
still are high, The New England
cotton mill wage reductions, il is
known, have been closely watched by
executives at the Troy shirt and col
lar factories. No new move, how
ever. has been made toward wage re-
ductions, and the details Of the mer-
ger have not progressed to such a
stage that these can be considered
Whether the economies will be
passed on to consumers in the shape
of retail price reductions also is un-
certain. But at least the merger will
place Cluett & Peabody in a position
to meet competition advantageously
no reduction in laundering
costs looms on the horizon.