Norwich Bulletin Newspaper, September 8, 1920, Page 2

4 PE K & TO THE PUBLIC: i . The leadership in the woolen goods trade which has -, / been attained by the American Woolen Company has BN - naturally subjected it to a variety of attacks, most of ' which, outside of trade and political rivalry, have been 24 b " The size of the operations of the American Woolen 'I Company—its large capital employed in the production = of seventy varieties of cloth in ten thousand varieties 9‘ of styles; its capital investment in fifty-seven mills and fi its employment of more than 40,000 mill workers— ? : " places it in the position of s\omething more t?un a pri- 'I vate corporation. S It has duties toward the national government to .' £ ' whom it has paid more than $20,000,000 in taxes in a - single year or more than 10% of the gross volun,m of its gl sales. The government should have reciprocal duties in protection of this American industry. » It has duliel\(oward 15,000 people who own its N $40,000,000 77% preferred shares—the first and only a' lien upen an investment estimated at above $150,000, X } 000. These shareholders are not speculators; they are y the backbone and sinew of our industrial life which must : ~G is easy, these shares sell at 107 premium. When money "g' . be based upon the savings of the people. When money |y rules as at present at high interest rates, they sell at 5 @ 10% discount from their-issue price of $100 per share, A: The American Woolen Company has duties toward él the 3,000 owners of its common shares—formerly $20,- AL 000,000 but recently expanded by the issue of $20,000,- i" 000 additional stock for new working capital. This s . stock was offered to shareholders at par, was underwrit- ¥ ten at 5% commission by a syndicate of bankers and b capitalists, and is now quoted at 20% discount from i"| par, although every share represents an equity value A above the preferred shares of more than $200 per share. I "™ The American Woolen Company has duties toward , its faithful employes which rank ahead of its obligations + fto its ordinary shareholders and are co-equal with the ¥ , interests of its preferred shareholders. All are depend- 9‘ ent, more or less, for their living and their livelihood, ok . upon wise and just management in the conduct of this [ "I " The American Woolen Company aims to recognize v’} its manifold duties to the public, not only in the produc- q‘i 4 tion of the best woolen goods American enterprise can l . produce and in the meeting of honest competition in p‘| « free and open American markets, but in the mainten- 1_ . ance, so far as possible, of steady employment for its :.' employes. It recognizes that upon this steady employ- % -mdq)end-lhcwelfmoftheuheaandtowmm To carry out these manifold duties it must aim toward steadiness in prices and fair values for its goods; for its wool purchased and for its labor employed. It must avoid, so far as possible, the purchase of wool at boom prices and it must be fore-handed in the use of its capital in the purchase of wool in times of liberal supply. It must aim to hold its skilled labor organization “with the fewest possible changes. It therefore pays the highest wages and gives the steadiest employment, so far as it is supported by the public in the purchase of its goods. To ‘manufacture and accumulate a stock of goods when the public refuses to purchase is only to invite disaster in markets and prices, reacting in the end upon our employes and the savings that furnish the capital. Such a policy continued would only result in prolonged depression disorganizing all the forces of both labor and capital which must jointly support this enterprise in its service to the public. The company must manufacture according to orders either on its books or clearly foreseen. Early in this year the company had on its books sufficient orders to insure employment for six months. Labor was in universal demand and prices of wool and woolen goods were at the highest seen since this company was organized. To maintain our organiza- tion and insure the fulfillment of our contracts another advance in wages of 157 was announced to our em- ployes in May. With the advance in the money rate and increasing restrictions to credit, cancellations began to come in; but for some time they were no more than might be expected and not larger in volume than had been seen in pre-war times without making disturbance in the in- dustry. When, however, on May 26th, the government brought indictments against this 2ompany for prices charged Yor its goodn"n open and competitive markets, it was notice to the trade by the government that the prices for woolen cloth must be reduced. Although the indictments were dismissed by the court of first jurisdic- tion on June 11th, cancellation of orders became uni- versal over the country. Total cancellations based upon figures collected by the government are estimated . for the whole trade at the entire annual output of the American Woolen Company. The total cancellation of orders upon the books of the American Woolen Company amounted to more than $40,000,000 or sufficient to give employment for two months to all our workers, - Fenm . tions. To have continued to manufacture and accumulate unsaleable goods would have been, not only financial suicide, but would have insured a depression in the ens tire woolen industry from which it would have taken many weeks, if not months, to recover by universal shutdowns with widesnread disorganization and unem- ployment. Therefore instead of the usual two weeks’ vacation in August, the mills were shut down on July 10th, which was fortunately the best season for a two months’ vacation. Had the shutdown been forced in the winter season, as it would have been by continued accumula- tion of goods, there might hgve been, with high prices and famine conditions for fuel, some personal suffering. To September 1st, however, there has been less call upon the company and the public authorities for per sonal assistance than in the preceding year, when there was only a two weeks’ vacation. The reason for this wholesome condition in our mill comnul;mu was the large volume of wages paid the past year—a sum ex- ceeding arfything ever before known in the American woolen industry. Yet the average wage is not higher tluntlmlmothershlledmduenhnumlolbewu of living. We believe in good wages for the American skilled working man—the highest wages that expenditure by wage earners themselves will jubtify. The makers of goods are the consumers of goods in this country. Price must depend upon wages and consumption. The American Woolcnfomplny will be a luc'ceu only so far as it is fair and just to the capital and the labor which it employs and to the public which it serves. If you believe in the policy of the American Wool- en Company in the maintenance of good wages for skilled working men, order your goods promptly this season, and if you carefully select your woolen cloth according to‘yowneeds,youwfllfindinthekmrhn Woolen Co;npuy production such a variety as will make it unnecessary for you to invite foreign importa- - % m? ' w ; -~ The American Woolen Company begins its exnibit to the trade Thursday, September 9th, and 'will begin the starting up of its mills Monday, September 13th, . The wage scale will be the same as when the mills were forced to close in July. The support of the public in the prompt purchase ofthegood-offlnAmerianWodenCmpnyilin- AMERICAN WOOLEN COMPANY 'By-Order. of the Directors e g B i . O '/ > B8 \Y/ 0o 0| )5 w— 15— X% /8 \Y/ 19— @ | o— i X X2 V i - FR7 X0 Y/ e \Y/ \Y/ \V/ \Y/