Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-10-11
DEMAND BOOSTS
ACTIVITY SHARPLY
AT TEXTILE MILLS
Rate Highest Since 1929,
According to Survey Con-
Quoted by Poor's.
CONSUMPTION OF RAYON
AND COTTON IN LEAD
Earnings Improve Substantially
as Sales and Prices Hold
at Higher Levels.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 10.-Textile
mill activity during the first seven
months was at a rate higher than
that for the corresponding period Of
any year since 1929. and indications
are that an equally favorable show
ing will be made for the whole of
1886. according to a new report ap-
pearing in Poor's Industry and In
vestment Surveys.
Operations so far this year are
running about Is per cent ahead of
the levels for the like 1885 period. This
is solely accounted for by the in
creased consumption Of cotton and
rayon textiles. as the sales Of silk,
wooden and worsted goods declined
materially.
Cotton Plants Rushed.
Cotton spinning activity this year
remained steadily in excess OF ca
pacity never declining below 1852 per
cent of capacity" continues the report.
August operations were at 1883 per
cent of capacity. and, while repre-
senting a decline from the July peak
Of 1913 per cent, showed a marked
gain above 76.4 per cent for August.
1885. Impressive interim earnings
gains have been reported.
with manufacturing stocks re-
duced, untitled orders sharply higher,
cotton goods prices selling at generally
higher levels. and prospects pointing
to the maintenance Of the improved
sales levels. the 1896 annual state
ments should reveal the largest earn
ings reported in recent years.
Less Wool Consumed.
This years wool consumption Is
substantially below last years record
level. Responsible for the 1885 peak
consumption was the filling of orders
held up by the 1884 textile strike, and
the large Fall demand for upholstery
fabrics brought on by the early in
PRODUCTION Of automobile models.
More efficient operations and rising
wool prices accounted for good interim
earnings gains. and with no inventory
losses indicated for the coming months,
1896 net income results should make
pleasant reading.
However. this division Of the In
dustry will remain highly unstable in
view Of excessive productive capacity
and the keen competition offered by
other textile fabrics.
Rayon Sets Record.
Consumption of rayon continues to
expand rapidly, not only in reflection
of rising demand for textile products,
but as a result of its competitive ad-
vantage over other fabrics.
"Rayon shipments to American mills
during August established a new high
record As production failed to keep
pace, producers stocks were reduced
to practically the lowest level ever
recorded.
Although lack of supplies may
force a reduction in shipments, sales
for the entire year should show a sub
stantial increase above the 1885 level
And with the fabric commanding a
higher price, good rayon company
earnings gains are indicated for this
year.
Silk Prospects Unimpressive.
Although silk deliveries to mills for
the year to date are substantially be-
low those for the like 1885 period. Au-
gust statistics made more favorable
reading.
Deliveries for that month totaled
42.0l6 bales, compared with 1888
bales in July and 41,7l5 bales in Au-
gust. 1885.
While the current high level Of
purchasing power favors expanding
consumption, the industry's long-term
prospects are somewhat dulled by the
decided trend toward rayon fabrics"