Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-30
M|LLERS STRIKING
|. ON RAW-S|LK PRICE
Seventy Mills at Paterson,
N. j., Close Monday in Plan
to Reduce Cost.
ny j. G. ROYI.E.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, July 30.--The price OF
raw natural silk must come down. SILK
manufacturers declare, before their
industry can be put on satisfactory
and profitable basis.
The majority of the silk mills now
are working on extremely low produc'
ton shedules, on part time and with
reduced pay rolls. About 10 Of the
3O5 mills located In Paterson, y. j.,
are sheduled to close for an indefinite
period Monday. 1t is to bring the
price of raw silk down az well as to
correct overproduction Of finished
goods that these steps have been
taken.
Manufacturers say the better grades
of Japanese silk must drop to or be-
low Sc a pound before they can see
profits. At present they are as high
as 40 cents above that figure. Most
piece goods business transacted by the
mills recently. it is claimed. has been
on ba sis of $3.50 to So a pound raw
silk There seems little prospect az
the moment for increase In finished
goods prices. II this is found 10 he
correct. the only way the disparity be-
tween raw silk costs and finished
goods prices can be ironed out Is by a
drop in the quotations for the latter.
Taltings Run Less.
American mill takings in late
months have been running approx
mateiy d 100 bales IA month less than
In the corresponding periods or l921.
This has had some influence on price,
but II also meant that many mills
allowed their stocks 10 run low, and
o.. Al Ia f.t
August and September requirements
has been a sustaining factor In the
market. Further curtailment Of pro
durtion naturally will tend 10 decreas Sc
the requirements for the next two
months.
Mill takings in June amounted To
1854 bales. or 1000 hales less than in
the corresponding month of 1925.
Mill takinss for the first six months
of the year totaled 37.043 bales as
compared with 249,45 in 1925. I'm
ports have totaled 1858 bales for
the six months as compared with
222. 935 last year. Stocks in storage
at the end OF June amounted TO 29,-
Ill bales, with 49, 800 bales In transit
between Japanese ports and New
York. The July mill takings have
been fairly we'll up 10 the average of
June.
What is counted on to aid in the
fight of the mauufa cturers for lower
raw material prices. however. Is the
act that in August and September the
new Japanese crop will commence to
reach the Yokohama market. AT
present the new crop. judging from
the cocoon volume, promises to be at
least as large as that of 1925, which
was a record breaker. The japanese
must dispose of this volume of ma.
terial and the American manufa ctur-
ers are apparently intent on forcing
them 10 do so in a market where de-
mand has been reduced TO minimum.
Fall Call Improves.
The call for Fall lines of finished
silk goods has shown recent improve
ment and there have been fliling.in
orders in evidence for Summer goods,
but the bids from buyers have been
SO low that makers are hesitant about
accepting them. Even If raw silk
prices come down, manufacturers are
pessimistic about their profits for the
year. feeling that they will fall below
those of 1925. The textile committee
of the Atlantic States Shippers Ad-
visory Board has informed the rail-
roads that natural silk shipments in
July, August and September will show
a 10 per cent decrease. On the other
hand. shipments of cotton goods in
Atlantic states territory are expected
to increase per cent in the third
quarter.
Sales of women's apparel, in which
silk plays such an ,impOrtant part.
promise to be good for the next six
months. The strike now going on In
the New York coat and suit trade
may hamper profits of the firms in
volved, but buyers for retail stores
are shopping extensively for coats and
dresses. The demand for hosiery
shows signs Of expanding. although 1t
is somewhat more noticeable in the
case of rayon than in natural silk
goods.