The evening world. Newspaper, September 7, 1920, Page 15

Peles es ie ‘ Ss a iy es haat Ota #8 BvENING WORLD, TURBDAY, SEPTEMBER 7, American Woolen Compan TO THE PUBLIC:. The leadership in the woolen goods trade which has been attained by the American Woolen Company has naturally subjected it to a variety of attacks, most of which, outside of trade and political rivalry, have been based upon misunderstandings. The size of the operations of the American Woolen Company—its large capital employed in the production of seventy varieties of cloth in ten thousand varietiés of styles; its capital investment in fifty-seven mills and its employment of more than 40,000 mill workere—places it in the position of something more than a private corporation. 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 volume of its sales. The government should have reciprocal duties in protection of this American industry. It has duties toward 15,000 people who own its $40,000,000 7% preferred shares—the first and only lien upon an investment estimated at above $150,000,- 000. These shareholders are not speculators; they are the backbone and sinew of our industrial life which must be based upon the savings of the people. When money is easy, these shares sell at 10% premium. When money rules as at present at high interest rates, they sell at 5 @ 10% discount from their issue price of $100 per share. The American Woolen Company has duties toward the 3,000 owners of its common shares—formerly $20,000,000 but recently expanded by the issue of $20,000,000 additional stock for new working capital. This stock was offered to shareholders at par, was underwritten at 5% commission by a syndicate of bankers and capitalists, and is pow quoted at 20% dis- count from par, although every share represents an equity value above the preferred shares of more than $200 per share. The American Woolen Company has dies toward its faithful employees which rank ahead of its obliga- tions to*its ordinary shareholders and are co-equal ‘with the interests of its preferred shareholders. All are de- pendent, more or less, for their living and their liveli- hood, upon wise and just management in the conduct of this great enterprise. The American Woolen Company aims to recognize its manifold duties to the public, not only in the produc- tion of the best woolen goods American enterprise can produce and in the meeting of honest competition in free and open American markets, but in the mainte- nance, so far as possible, of steady employment for its employees. It recognizes that upon this steady employ- ment depends the welfare of the cities and towns in which its mills are located. a To carry out these manifold duties it must aim toward steadiness in prices and fair values for its goods; for its wool purchased arid for its labor employed. It ttiust avoid, so far as possible, the purchase of wool at oom prices and it must be forehanded in the use of | its capital in the purchase of wool in times of liberaf © 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, 80 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 iri markets and prices, reacting in the end upon our employees 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 énterprise 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 trganized. To maintain our organization - and insure the fulfillment of our contracts another advance in wages of 15% was announced to our em- ployees 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 industry. * When, however, on May 26th, the government brought indictments against this company for prices charged for its goods in 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 juris- diction on June 11th, cancellation of orders became universal 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. 1940. To have continued to mamufacture and éccurhulate unsaleable goods would have been, not cally financial - suicide, but would have insured: a depression ti tid entire woolen industry frem which it would have talbéti many weeks, if not months, to reciver by uitivertel shutdowns with widespread disorganization and wm - employment. { Therefore instead of the usual two weeks’ vaca- tion in August, the mills were shut down on July 10th, which was fortunately the best séason for a two nabitths’ vacation, Had the shutdown keen foreed ia the winter season, as it would have been by continued _accumulation of goods, there might have been, with high prices and famine conditions for fuel, sonie pet- sonal suffering. To September 1st, howéver, there has'betn lées call sonal assistance than’ in Uhe ‘préceditig year, when there was only a two weeks” vacation. The tedson for this wholesome condition in our mill commrantifies was the jerge volume! of wages piid the past yéar-a° stim exceeding anything ever before known in the Ametican woolen industry. Yet the average wage is not higher se Gan Seale shih ceslin tee of living. We believe in good wages for the Anterioam eltiiied working man-—the highest wages that expenditure by wage earners themselves will justify... The makers of goods ate the consumers of goods in: this country. Prices must depend upon wages and consumption. The American Woolen Company will be a success 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. ena piece ete, | If you believe in the policy of the American Woolen Company in the maintenance of good wages fer skilled working men, order your goods promptly this season, and if you carefully select your woolen cloth according to your needs, you will find in the American Woolen Company production. such a variety as will mele it unnecessary for you to invite foreign importations. « ¥ The American Woolen Company begins its exhibit 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 of the goods of the American Woolen Company is invited. AMERICAN WOOLEN COMPANY By Order of the Directors WILLIAM M. WOOD, President ne ceases it i fF MT te REAR TAA OL EE OI A ANE