Business & Finance: American Woolen

The sensation of last week in the stock market arose from the passing of the 7% dividend upon American Woolen common. Dividends on the stock at a rate of 5% were inaugurated April 15, 1916; on Oct. 15, 1919, the rate was raised to 7%, which has been paid ever since. The Company's statement attributed the dividend action to "the severe depression in the textile industry"; American Woolen itself is probably experiencing the most trying period since its formation over 25 years ago. The day before the dividend was passed, the stock "acted queer" in the market, declining noticeably on heavy selling. Either the insiders were "getting out," or else astute traders were "getting short" of considerable stock. Next day, when the news came out, the stock collapsed about 14 points; the rest of the week it continued to drop. For many months, American Woolen has been considered in Wall Street as a "mystery stock." Experts wrangled over just what its statements really meant. Speculators failed to make money either buying or selling its shares. It is a well-known fact that American Woolen is a "one-man" company—the individual in question being its President, William M. Wood. Particular interest has centered around possible political consequences of the passed Woolen dividend, which seems to contradict Republican Chairman Butler's assertion that wages of textile workers would not be reduced. Democrats rejoice that all this happened under the high wool schedules of the Fordney Tariff Act, approved by the Republicans. Critics are asking: "What are William M. Wood's political affiliations, anyhow?"