Evening star., 1932-09-30
OUTPUT OF RAY0N
AT SMALL FIGURE
Factories Remain on Re.
stricted Schedule Despite
Increase in Sales.
BY BRADLEY w. TRENT.

Special Dispatch to The Star.
NEW YORK, September 80. - That
synthetic textile-rayon-waS much In
the liInelight here today as result OF
discussions about the present small OUT
put, the numerous cables concerning 1t.
and the suit Of the Acadia Knitting
Mills, Inc, against the Viscose Co.
With present textile activity greater
than usual for a depression period, the
trade does not understand how the out
put of rayon will meet demands when
business attains normalcy. Productive
capacity of the rayon industry Is l90,-
100000 pounds annually, but capacity is
being reduced by one-third because OF
the types Of weave now in demand.
Earnings Small.
Furthermore, the domestic rayon in
duStry, except where a company's treas
ury Is well lined with cash, will not ex-
pand productive capacity. The low rate
of operations earlier this year and the
price wars waged to push products on
the market left earnings at such small
figures that many companies did not
earn bond interest requirements. This
means that expansion funds will have
to come from within the industry, be-
cause some former security flotations
have left a decided bad taste for any
thing savoring of textiles.
Meanwhile, demand for rayon is stead
lily widening, due to improvements in
the yarn and the development of new
uses for the textile From Paris comes
the word that rayon table linen Is being
widely displayed that there are many
new uses for rayon knitted cloths, and
a new tendency in rayon laces which
now run to a heavier quality.
That rayon production has profound
ly affected the French silk industry is
indicated by reports from Lyons, the
center of silk weaving, that IS per cent
of the looms now are working on rayon
Silk Is being displaced by rayon in the
manufacture Of French underwear and
hosiery.
Japan has lifted the price of rayon
because of the fall Of yen exchange.
Production costs have risen. owing to
increased prices of pulp and caustic
soda. but exports Of rayon have
broadened so rapidly that December
deliveries have been sold out and COM
panies now are booking January de-
liveries. Japanese rayon companies
with better profits, expect to be able
to resume dividends for the second hall
of this year.
Other Foreign Sales.
Berlin reports that July and August
sales of rayon showed highest volume
of the year. Although German rayon
prices to date have remained un-
changed, Oscar Biercher, director Of
the German Rayon Syndicate, said
quotations soon would have to be raised
to meet the advancing costs Of raw
materials.
The output of rayon in France
dropped from $4,000 metric tons in
1880 to 81 900 in 1881, but imports in
exports rose from 8,0z9 to 8492 tons.
The Artificial Silk Co. Of Alsace, at
Colmar, reported q loss Of 1869, ,304
francs in 1881, but adds that since the
first of this year demand has expanded.
The Arcadia knitting Mills, Inc,
largest American makers OF rayon
cloth, have filed suit against the
Viscose Co., makers and sellers of
rayon yarn. for s20,Ooo,0oo, alleging
failure to carry out the terms of
contract dated August Is, 1882. under
which it is reported Viscose agreed to
supply Arcadia with rayon yarns at
ments as became necessary from time
to time.
Viscose makes more than one half OF
all the rayon yarn produced in this
country. Arcadia takes about Is per
cent Of Viscose's output. The latter
alleges the former failed to fill its Or
ders. The suit alleges that Viscose in
September notified Arcadia that 1t was
rejecting orders and would refuse fur
ther business from the company for
rayon yarn. Arcadia alleges Viscose's
action will close its mills. This suit is
of interest because it is the forerunner
Of many similar cases in the textile
trades, where demand now exceeds
supply.