Woolen Goods

Busybodies tried to make Partner Thomas William Lament of J. P. Morgan & Co. say last week that his concern intended to buy up the American Woolen Co., dominant producer of its field. Vexed, he replied tartly: "We are not interested in any shape or form in the American Woolen Co. We don't like making formal denials of reports like these, because such denials are sometimes misunderstood as being ungracious, but that is the simple fact."

The reports have grown since William Wood, organizer of the American Woolen Co., committed suicide last year (TIME, Feb. 15, 1926). Since 1924, the company has been losing money. The loss then was $6,944,420. Last year, according to the annual report issued last week, the loss was $4,225,845.

President Andrew G. Pierce explained: "An average 20% decline in wool prices entailed not only a severe shrinkage in the Value of the company's raw material supplies but automatically affected stock in process and finished goods. This, coupled with the abnormally poor demand for goods, tells the story."

Demand was poor because people with little money to spend curtailed purchases and those with much money bought silk and rayon. This year the advertising of cotton clothes will seriously affect woolen goods.

Wool prices declined last year because 3,060,730,000 pounds were produced in the world, 78,000,000 more than in 1925.