Evening star., 1942-07-19
Textile Mills 10 Run
At Capacity for
Rest Of Year
Operations Dominated
By Military Needs;
Lower Profits Seen
Special Dispatch to The Star.

Special Dispatch TO The Star.
NEW YORK. July l8.-Substantlal
Government orders and heavy civil
ian demand will hold textile activity
at capacitv operations during the
remainder of 1912, according TO a
survey of the textile and apparel
industry issued by Standard d
PQor'S.
All divisions are expected to bet
ter their l94l sales. Profit margins
will probably shrink because Of in
creased costs and price ceilings, but
larger volume should result in mod
crate operating income gains. The
increase in income taxes, however,
will cut down final earnings.
Textile activity, as measured by
fibre consumption, showed year.
to-year gain of close to 10 per cent
in the first five months of this year.
Cotton consumption rose 81 per
cent. rayon "a per cent, while wool
declined per cent.
War Needs Dominant.
Textile operations, especially in
the cotton and woolen divisions,
will be mainly influenced by the eX-
tent of Government orders for war
needs. AS our military forces are
increased by the addition of mil
lions of men. Government require
mentS of all kinds of textile products
will expand considerably. The in
iustry is now turning out huge
quantities for the services and fur
ther new buying is in prospect as
the year progresses. In fact, pro-
ouction of certain lines for military
purposes will be so great as to limit
severely the materials that will be
available for civilian use.
Under existing conditions, the tex
tile industry is assured of a high
rate of operations for some time to
tome. but the experience of the
various divisions will vary widely
because of raw material problems
and Government allocations to as
sure adequate output for military
needs.
Cotton Operations to Rise.
Because of the extremely large
supplies of raw cotton in this coun-
try. cotton mills will not be troubled
by raw material difficulties and they
are in a position to operate to the
full extent of available machinery
and man power. The industry will
be called upon to maintain opera
tions at the higher levels possible
to fill Government orders and regu-
lar civilian demand,
To fill the large demand it is esti-
mated that the industry must pro-
duce approximately u billion linear
yards of cotton fabrics in 1912, COM
pared with production of 10,546,-
414.000 yards in 194l, 20 per cent of
which went to the Government. Of
the total 1912 output the Govern
ment will require about so per cent,
leaving some billion yards for
civilian consumption. The extent of
s. the curtailment of civilian use be-
comes apparent when compared with
total production of 8,420,748, 900
linear yards in 1889, which was al
most entirely available for civilian
needs.
Wool Restrictions Eased.
To increase the amount of woolen
cloth available for civilians, the
WPB will allow an additional 25
per cent of manufacturers quarterly
poundage quota of new wool for the
remainder of the year. This bonus
may be used only in the production
of yarn or fabric containing not
more than IS per cent of new wool.
The regular quota on the worsted
system remains at 20 per cent of
the basic quarterly poundage, but
is reduced to per cent of the
woolen system.
While this will make available a
greater amount of cloth for civilians,
the supply for spring delivery is ex-
pected to be we'll below that of a
year ago.
Contracts for about 80000,000
yards of wool and part-Wool cloths
were placed by the Army quarter
master in April. Work on this busi-
ness plus efforts to reduce the large
civilian backlog will maintain opera
tions over the remainder of the year
st close to the record levels of re-
cent months. In view OF the in
creasing size of the armed forces
and the tremendous quantities of
wool clothing necessary to equip and
maintain large Army, further sub
stantial buying may be expected
soon.
Gain in Rayon Indicated.
&sSland for rayon yarn and staple
fiber promises to exceed production
since the industry must not only
supply yarn TO former producers OF
silk hosiery and to Worsted mills, but
must furnish large quantities to the
armed forces and for shipments un-
Ger lend-lease contracts.
Plant capacity is only slightly
larger than in 194l and the larger
production of high tenacity yarns
and of finer deniers will tend tc
restrict increases in overall pound
age. While the increase in output
will consequently be small. dollar
value will show proportionately
greater gains because Of higher
prices and larger proportion ol
higier-priced yarns.
With the elimination of silk ant
rylon as raw materials, the full
fashioned hosiery industry has gon
over completely to the production
of hosiery made Of rayon and mix
lures Of other fibers
Demand prospects for the higher
priced rayon constructions will de
pend on consumer acceptance o
these new lines in place Of nylol
and silk. Until this is clarified, an
operating difficulties encountered L
the transition to new flbers ar
overcome, earnings Of the bette
grade hosiery makers will probabl
be seriously restricted. Producer
Of priced rayon and cotto
hosiery are more faVorablv situated
Output. however, will be limited b
rayOn shortages
Apparel Outlook Mixed.
Sales of mems clothing in tn