Evening star., 1941-03-23
Boom al Textile
Plants Assured
For Half Year
Big U. S. Orders Spur
Cotton, WooIen Mills;
Silk Loses to Royon
Special Dispatch to The Star.

Special DlSpdtCn 10 Inc Sthr.
NEW YORK, March 22.-With
the exception of silk, textile opera
tions-as measured by fiber con-
sumption-should hold at exception
ally high levels during most of the
first half of this year, according to
a survey by the Standard & Poors
Corp. A large backlog of Gov
ernment orders, in addition to-
trade demand, will support activity
in the cotton and wool divisions,
while continued expansion in mar
ketS will aid the rayon division.
Silk consumption will continue to
suffer from the loss of the silk
goods markets to rayoh and further
growth in the use Of nylon yarn
in hosiery production. Firm prices
together with economies permitted
by a high rate of production, will
maintain profit margins at reason
ably good levels for most textile
concerns. Despite increased taxes.
earnings of the stronger companies
should compare favorably with those
for the first half of 1910.
Spurred by large Government
orders, principally for wooden and
cotton goods. textile operations are
running at record levels. Indica-
tions are that little change in the
rate OF activity will be witnessed
during the next several months. in
view of the sizable volume of un-
filled orders still on hand. More
over, increased industrial production
and public buying power should ex-
pand demand for textile products
for industrial and household use
IN coming months, and this will aid
in supporting operations at current
high levels. BY late spring, however,
a good part of the present Govern
ment orders will be worked off, and
unless further business from this
source materializeS, some decline in
operations may occur. Nevertheless.
aggregate textile activity during
most of the first half of l941 should
hold well above that a year before.
Cotton Record Set.
In the cotton division, the sharp
squirt in output in the late months
OF 1910 lifted cotton consumption
for the year to 8,018,00O bales, a
new all-time record. A good part of
this exceptional showing was due
to the fact that a large portion of
the Government orders received was
concentrated in the heavier cotton
goods constructions, such as ducks,
drills, denims, etc, and this natu-
rally required a greater use of raw
cotton in the finished output. Most
mills working on these constructions
still have sufficient backlogs to as
sure high rate of plant operations
and cotton consumption for some
time to come.
In the lighter cotton goods lines.
mill activity also has been supported
by Government orders, but more
especially by the large scale trade
buying which occurred in the late
fall. The latter buying eased off
toward the close of 1910, but has
ceen recently succeeded by renewed
demand. which has lifted sales above
production. AS a result, mill stocks
of nearly all types of cotton goods
have been reduced to low levels.
Hence, further periods of good trade
demand are expected during the
months ahead, particularly as store
outlets will need to replenish sup
plies to meet the expanding con-
sumner buying expected from the ris-
ing level of public purchasing power.
With improvement in sales, prices
of all cotton cloth constructions
have risen to levels which permit
reasonably good profit margins for
efficient producers. As prices should
remain firm and mill activity will
hold at high levels. satisfactory
earnings are indicated for the
stronger companies during the first
half Of 1941, despite the limitations
imposed by increased taxes.
Wooden Mills Rushed.
The woolen division has been the
major beneficiary of Government
orders, with work on the large
requirements for uniform cloth,
blankets, ETC., necessitating the
transfer of major part of mill
machinery to this business alone.
In fact, to prevent any tie-up in
production and enable manufacture
ers to care for civilian demand, the
Government has placed orders for
substantially all its woolen goods
needs through the fiscal year ending
June 30 and has permitted deliveries
to be extended through July. Un-
filled orders for men's-wear fabrics
are estimated at around 50,0O0,000