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Old School Wool Buyer Has Seen
A Few Changes In Wool Business
By Colleen Schreiber
MURRELLS INLET, S.C. — When Richard Whitlock started in the wool
business back in 1955, stick whittling was an art a wool buyer had to
master if he ever expected to get much wool bought. Whitlock became a
pretty good stick whittler.
Whitlock and Jim Elliot, of R.C. Elliot & Co. of Salt Lake
City, are about the only two wool buyers left in the business from the
old school where every trade was done private treaty, one on one, with
the grower at the shearing pens, sitting on a bag of wool while
shearing was in progress.
"The buyers would use their personality and dicker back and
forth with the grower and whittle the stick," Whitlock explains.
"Wool sales didn’t get started until we got a few buyers who
couldn’t do the stick whittling, and they talked the grower into
going to sales, but that didn’t happen for quite a few years after I
moved west."
The buyers handled the fleeces at the shearing pens as they were
coming off the sheep. They would use their hands to keep track of the
different grades so they could come up with an overall percentage for
that particular clip. The categories were fine, 62, 60s, 58s, and
coarser, and the buyer would make a mark on the finger corresponding
to which category a particular fleece fit in.
After handling 100 fleeces, they’d figure a percentage of the
various categories for the overall clip. They’d go back the next day
and do the same thing all over again and come up with a price for that
clip.
"I knew about six buyers who did it that way," Whitlock
says. "Those who come to mind are Jay Myers, Bob Elliot, and Paul
Finnegan."
There was little laboratory testing in those days, and when testing
first started, Whitlock remembers a couple of the old-school wool
buyers commenting that it would surely be the death of the industry.
"It of course has nothing to do with anything relating to
today’s situation, but it was a good story," Whitlock says.
"I never had a problem with testing," he adds. "If a
lab didn’t agree with me, the lab was wrong."
The competition was stout, he says, and at times it was a cutthroat
business, but after business was finished, they were a tight-knit
group of men.
"Every buyer would try to figure out what the competition had
been telling the grower," he recalls. "It was a game, but a
game backed with money."
His Boston office would send a telegraph to its buyers telling them
at what price to buy wool. They had a code for the different grades
and the money they were willing to pay for the various grades. The
limits, Whitlock says, were always issued on a clean basis. The buyers
would take those limits, figure the yield and the freight, and come up
with a grease price.
There were two or three buyers at every shearing pen representing
the various firms.
"There was so much wool to buy back then that I didn’t try
to buy any one particular clip. I would just try to get out and buy
every one I could."
From the time he started as a buyer out west until about 1972,
Whitlock traveled about 160 nights out of the year, easily putting
40,000 to 50,000 miles a year on his car.
"Every day it didn’t rain we followed the shearers. I’d go
to seven shearing pens a day. Now, with the reduction in sheep
numbers, I could probably look at all the wool in that same area in
five or six days."
The average size of a clip back then, he figures, was 45,000, maybe
50,000 pounds.
"In those days we bought wool a boxcar-load at a time."
He remembers one year in the early 1970s when he went out to Miles
City, Montana in July and didn’t leave there until after Labor Day.
"I was shipping five days a week. Quick as I got it bought, we
loaded it up," he recalls.
Whitlock grew up in Lake City, South Carolina, during the time when
the textile industry was booming. Whitlock’s father did a little of
everything to keep his family fed during those days. He drove a bread
truck, ran a liquor store, was a bootlegger, and ran a laundry.
Whitlock figures it was the latter that first sparked his interest in
the textile business.
He majored in textiles at Clemson University, where he learned
about general textile manufacturing practices including carding,
combing, spinning and fabric design.
Upon completion of his degree, he went to work for Jack Wellman of
Nichols and Company, which later became Wellman Combing Company. He
started in their combing plant at Johnsonville, South Carolina.
At that time, Whitlock says, Nichols was processing some 30 million
pounds of top annually between its four plants. Most plants were
operating full-out, running three shifts seven days a week.
His first job was passing the wool up to the graders. In those days
the fleeces were all tied. Whitlock would open the bag, cut the
strings and throw the fleece on the table.
They had eight tables for sorting. Most of the sorters were women.
They would sort off the bellies, the pieces and the tags, which would
later be baled.
The two graders on each shift would grade the wool into five or six
different category grades. Whitlock eventually worked his way up to
the sorting table and then to grading.
He worked at the combing plant for about six months before he was
called away to the Army, but he came back in 1957 after completing his
duty. Nichols/Wellman was just starting their first buying
organization out west, and Whitlock was offered an opportunity to be
part of that team. Being single, he jumped at the chance.
For the first five years after his return, Whitlock spent the off
season in the wool room, grading and sorting. During the spring he
would go west for the shearing season. Back then it was a six to
seven-month season. Whitlock followed the buyers and was responsible
for shipping the wool and paying the growers.
He did that from 1957 to 1962, and then he had an opportunity to
move to Salt Lake City and become a buyer for Wellman. He shared an
office with Jack Stressenger and Hank Willey. Willey started in the
wool business in 1918. He worked for the railroad, but he was strictly
responsible for shipping the wool back east that had been bought by
all the Boston wool dealers. Willey went to work for Nichols when he
was 66 years old.
When Jack Stressenger started in the business, he worked for
Howell, Jones and McDonald, a Boston wool dealer. Whitlock says just
about every pound of wool that Stressenger bought for this Boston wool
dealer went to Nichols. When Nichols made the decision to put a buying
team together, they hired Stressenger to head it up. He in turn hired
Willey.
Whitlock traveled a great deal with these two men during those
first few years. They became his mentors. From them he learned how to
judge wool and how to relate to the rancher. Their golden rule was to
be honest and straightforward with the grower and never, ever
throw them a curve.
During those years, Wellman/Nichols had 12 buyers scattered out
across the country. There were two in Texas, two in the Midwest, and
the rest worked out of Salt Lake City. Dick Boutin, Bob Woodbury and
Jess McDonald all started the same time Whitlock did. Boutin was in
Texas; Woodberry was in Colorado and Jess McDonald was one of the
Midwestern buyers.
In those early years, Whitlock says, the Salt Lake City office
alone was buying 32 to 35 million pounds annually. Whitlock would
start out in Arizona in January. He’d spend four or five weeks
there. In late February he’d go to Montrose, Colorado, for about six
weeks, and from there to Grand Junction for another six weeks. He
worked his way back to Salt Lake City with buying stops in Wyoming and
Montana.
Some of his toughest competition, Whitlock recalls, was from Jim
Elliott with R.C. Elliot & Co. and Scott Smith, a buyer for
Provoust, which is now Chargeurs.
Over time, buyers would develop a relationship with different
growers. Draper Wool, another Boston firm, basically had control of
Craig, Colorado.
"Mr. Joe Malone would come west and move into the hotel in
Craig and spend three months there doing nothing but buying
wool," Whitlock recalls.
One of the families with whom Whitlock became acquainted was the
Emment Elizondo family of the Grand Junction and Montrose areas. They
ran about 17,000 or so sheep early on.
"It took quite a few years to gain Elizondo’s confidence,
but when I did, he stayed with me.
"There were other growers that other buyers developed a
loyalty with, but you would still go out and visit with them and look
at their wool, because you never knew. You never gave up."
Other loyal customers who have stuck with Whitlock all these years
are Wyoming ranchers Pete Arambal, Truman Julian and Jim Magagna.
"I never met a rancher I couldn’t like," Whitlock says.
"The sheepmen are the greatest people to deal with. Lawyers and
bankers can’t understand why we don’t have contracts. I’ve been
in this business since 1957, and I’ve never written a contract. A
handshake has always been my contract."
During those days, Wellman sold every pound of wool to domestic
customers. J.P. Stevens was a big buyer for 62s top, Whitlock
says. They were good for maybe 20 million pounds of top a year.
Burlington was another big top buyer. But things began to change in
the early 1970s. Synthetics were just beginning to come onto the scene
in a big way.
In 1972, wool prices were low, and greasy wool wasn’t moving at
all. Mariner and Company, a topmaker, decided to try exporting grease
wool.
"Charlie Chase was with them at that time," Whitlock
recalls. "They were about the first to my knowledge to ever
export grease wool."
Wellman followed suit, first exporting raw wool and then soon after
top. The latter was to be the beginning of their downfall.
"Wellman made a deal to sell five million pounds of top to
spinners in Germany at 92 cents a top pound delivered Germany,"
Whitlock recalls. "Other companies did the same thing, and in
1972 it turned into a race to get the wool bought.
"We had to buy the wool around 35 to 40 cents clean, so we
were paying 10 to 12 to 15 cents for the wool," he notes.
"The last clip that Wellman bought to cover that sale was bought
by Milt Heins in California. Milt paid $3.25 clean to go against the
92-cent top. After that sale, Wellman said that was it. They were
getting out."
To their credit, Whitlock says, Wellman made delivery on every
contracted pound.
The company had gradually been decreasing its buying force, and in
1973 Dick Boutin, Jesse McDonald and Whitlock were the last three to
"graduate."
Whitlock then took a job with Draper Wool, buying wool for various
mills on a commission basis. He did that from 1973 until 1977, when he
decided to start his own order buying business. He bought primarily
for J.P. Stevens, Burlington, and then a year or so later for Wellman.
"I built a pretty good little business," Whitlock admits.
"In 1978 Wellman decided they wanted to get back into selling
top, so I made a deal with them to buy the wool. They processed it and
sold it in their name, but it was my top."
He did that for about three years, and then due to changes in
Wellman’s business, Whitlock’s brother Beau and a couple of other
investors bought the old J.P. Stevens combing plant in Allendale,
South Carolina. Whitlock took his combing business there, and that’s
when he and his brother started OneUp Enterprises, which Whitlock
still operates today. Beau Whitlock died of cancer in 1992.
Whitlock continued his commission buying for the other mills for a
time and continued making top, but eventually the business evolved to
where he was strictly buying wool for his own use to make into top.
Today he processes and sells 90 percent of the wool he buys, either
as scoured wool or top. All of his scoured business goes to Bollman in
San Angelo, and he does commission combing now with Chargeurs at their
Jamestown, South Carolina plant.
His topmaking business has evolved into other areas as well. At his
warehouse in Lake City, Whitlock has a cutting operation where he cuts
the wool slivers into various lengths for some of his cotton system
spinners.
He also recently put in a lanolin business at the warehouse
facility, but that business is progressing slowly.
Whitlock uses 98 percent American wool; the remaining two percent
is New Zealand wool.
"I prefer American wool," Whitlock says, "though
supply is a big worry. I could use some fleece 54s right now, but they’re
sold up until July and August. In the future I might be forced to use
South American wools to take up the slack."
Unlike many in the wool business, the majority of his customers are
still in the U.S., though today most of the wool goes into industrial
uses rather than for apparel.
The wool industry has changed tremendously since Whitlock first
started in the business. He’s watched the number of topmaking
companies in the Northeast and Southeast go from dozens down to
basically one. The same is the case with the fabric makers. He’s
watched the domestic clip, which was at about 400 million pounds in
the late 1950s, dwindle down to just under 40 million pounds.
"There’s not enough wool to support all the wool buyers out
there right now," Whitlock comments. "That’s why I had to
diversify. It’s awfully tough to make a living off buying raw wool
alone."
Having too many wool buyers, he points out, favors the grower.
"From a grower’s viewpoint, we need every one of them. It’s
a good market for the sheepman right now, and that’s a good thing,
because without them I don’t have a job."
In terms of processing, he looks to Chargeurs to continue to hold
out as the last domestic combing mill.
"We badly need a combing plant here in this country," he
says.
Whitlock points out that Europe is heading down the same path the
U.S. has taken.
"Right now they’re moving the combing plants out of Germany
and France into Eastern Europe because it’s cheaper, and they’re
getting hurt in Italy by the Chinese fabric. The reality is that all
textile manufacturing will end up in the most undeveloped countries
where there is cheap labor."
Whitlock says it hasn’t been hard for him to adapt to change and
diversify into other enterprises because he had experience in both
ends of the business. It has been hard, though, to watch an industry
die.
Today Whitlock says he’s more or less a niche supplier, even
though his business accounts for about 10 percent of the domestic
clip.
"I produce about half a million pounds of top and maybe a
million pounds of scoured wool. I’m very small, but I’m a
player."
Nonetheless, it’s a far cry from, say, 1974, when he bought nine
million pounds in one season.
Whitlock goes to few shearing barns now. He goes out to the
Imperial Valley for what little lamb wool is there, and then over to
Arizona and to Wyoming for a short time.
"It’s impossible to follow the shearing today the way I once
did. If you’re going to purchase and ship direct from the country,
you have to do it in truckload lots, and the flocks today are so small
that it makes it impossible to do."
He’s hopeful that sheep numbers have stabilized a bit.
"I don’t think we’ll see the drastic drop in numbers like
we’ve seen these last several years. The losses will come now from
the younger generation who don’t want to stay in the business."
Whitlock and his wife, Kelly, moved from Salt Lake City back to
South Carolina where Whitlock grew up in 2000. He hasn’t retired,
though. In fact, he says he plans never to quit buying wool.
He is able to do a little more relaxing, though, now that he’s
not on the road 160 days out of the year. He does some golfing, still
enjoys traveling, but he particularly likes boating the intercoastal
waterways from Maine down through Florida.
Though the art of stick whittling has gone the way of the country
wool trade, the other skills necessary for being a good wool buyer are
still basically the same, Whitlock says.
"This business requires patience. You have to know when to
hold them and when to fold them. You’re going to win some and lose
some. You can’t win them all. I wish I could."
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