Evening star., 1927-08-10
TEXTILES MAKERS
s. FACING PROBLEM
Cotton's Rise Puts Up to Mills
Advancing of Goods Prices.
Fear Buyers Strike.

Special Dispatch TO Ihe star.
NEW YORK, August 10.-Having
aust been given $135 600, 600 or more un'
axpectedly owing to the rise in cotton
prices following the Government estl-
mate. the business pulse OF the South
has quickened like magic. But many
of the mill owners, wholesalers ana
retailers handling cotton goods IN New
England and other parts OF the coun-
try are on the anxious seat.
Cotton goods prices have advanced
hut there is a feeling that they have
not risen as much as the condition
of the raw staple market warranted.
Manufacturers and dealers are dubl-
ous about further rises, because they
fear to check the volume of retail buy
ing. which has shown marked I'M
provement in the last seven months.
ReportS from New Orleans 1ndlcate
that the advance in goods prices has
stimulated rather than checked buy
ing and wholesalers report sales IN
the last few days the largest in his
tory.
Northern manufacturers are deeply
concerned in maintaining the gains
thew have made. For example, the
Consolidated Textile Corporation IN
the first half year had net income
OF $2l5, 600 or Il cents a share on the
common stock as compared with
deficit of 1886. 900 for the correspond
ing period of 1926. The Pacific mills
earned $709, 900 in the six months.
gain of s1.20 share. Standard
Textile Products net was $4,000, as
compared with $So, 900
The volume of business in general in
the cotton textile industry has shown
a gain of approximately Is per cent
and manufacturers have been counting
on q fine Summer trade to make this
wear the best since 1928. This accounts
for their present anxiety over the raw
cotton situation. Most Of them realize,
however, that there is ample time for
the weather and the boil weevil to
change the outlook before the end of
the crop year.
The condition in textiles in so spotty
that it is hard to forecast effects on
the industry as a whole. For example,
directors of the Osborn mills, of Fall
River, have called a meeting August
% to determine whether it is impera
tive to sell the plant in order to save
something for the stockholders. The
Bates Manufacturing Co. of Lewiston,
Me-, operated only 400 of its - 100
narrow looms and so per cent of its
700 wide looms during the first half
year.
This was less than so per cent of
capacity. yet the company carmel
$S.40 a share for the period. The wide
looms made enough profit to carry
the narrow looms. In scores of plants
the question of equipment and of mod
ernizing machinery is a burning one.
Advance in American cotton prices
Is Of the utmost Importance in other
countries, especially England. India
and other parts of the Orient Exports
OF cotton and cotton goods from Amer
lea IN the last seven months have been
extremely heavy.
The advance in cotton. coupled with
the expected flrming up of the crude
rubber market, is likely to have de.
cided effect on tire prices. Demand
fhr tires and tire fabrics is very keen.
One of the leading cotton statisti-
clans now places the prospective value
Of the present cotton crop to the
South at 1920. 600 600, with S210, ,000,-
600 additional for the seed, making a
total of LAO. 600, 900. These facts and
figures cannot help having an effect,
not only on the business of the South,
but Of all the country and on the AGO.
600 wage earners in the textile indus
fry