A lack of direction in the market coupled with increasing cost factors in many areas of the Group's operation have contributed to a less satisfactory than anticipated performance in the Company's apparel fabrics operations. Some turnaround in market direction became apparent in the second calendar quarter and the outlook for the year ahead would appear to be more encouraging. The Group's merchandising philosophy is to operate on a highly diversified manufacturing basis. No large commitments to commodity-type merchandise are made. Rather, the Group is noted for its new fabric development and rapid manufacturing turnaround capabilities. From this posture, it is able to support the changing market trends and demand, offering a wide variety of fabric styles.

The Group's fashion-oriented Greige Goods Division is a center for fashion merchandise which finds its way into the top-style apparel lines in the country. A close relationship between Greige Goods personnel and major converting operations throughout the industry has in many cases led to the development of exclusive fabrics, whose early market presence is of distinct advantage to the Company. A new look in polyester and natural fiber blends, pioneered by the Division, is showing considerable market promise.

A re-evaluation of the Finished Goods Division's marketing role has seen programs directed to: maintaining tighter inventory controls, a commitment to specialty fabrics, the expansion of activity in the women's sportswear/outerwear field, and into the men's slack market.

Style changes favor this Division's activities in the development of the softer, more casual draped-fabric look. Reeves fabric entries in this area are anticipated to replace the less formal look, as American consumers move in the direction of a more conservative fashion attitude.

During the year, the update of plant and equipment continued. The move to wider, more efficient looms of the 68 inch variety has been an important investment. The Company recently purchased 87 model X-3 looms for production at the Company's Chesnee, S.C. plant. Other capital improvements include the completion of a dust control system at the Eastman plant as part of the Group's major commitment to OSHA guidelines. A reduction in demand for carded cotton goods has necessitated the complete phase-out of the Greenville plant that late last year was converted to an all spinning operation. Machinery and equipment not needed at some of our other facilities will be sold.

The Company entered discussions with Fieldcrest Mills, Inc., pertaining to buying and selling certain assets of its Eagle & Phenix Division at Columbus, Georgia. Subject to the outcome of negotiations which are still in progress, a further announcement will be made should a definitive agreement be reached.

Finally, the Group's extensive dyeing and finishing operations have been consolidated at the Bishopville plant, and the efficiencies are working themselves through the Group's operations.

The streamlining of the Apparel Textile operation is an action of the Company calculated to maximize opportunities for return to our long-standing position in this market. Though imports and cost escalation may have a negative impact, the market's demand seems to have found some firm style and fashion footing. The Group's present sold ahead position appears to be promising for 1979.

Reeves sportswear, rainwear and

The CHAIRMAN. Now, Mr. Elmer A. Fike, who is president of Fike Chemical Co. of Nitro, W. Va. Welcome, Mr. Fike; we appreciate your being with us this morning. We look forward to your statement.

STATEMENT OF ELMER A. FIKE, PRESIDENT, FIKE CHEMICALS, INC., NITRO, W. VA.

Mr. FIKE. I am Elmer A. Fike, president of Fike Chemicals, Inc., Nitro, W. Va., a company manufacturing small volume specialty chemicals. We have an average employment of 65 people.

As to my credentials outside my profession as a research chemist, engineer, and manufacturer, I am active as a volunteer in the West Virginia Safety Council. I was president of this organization from 1970 to 1971. I take part in a monthly seminar on industrial safety. Partly due to the influence of the seminars, the largest coal producer in West Virginia instituted an effective safety program which has reduced their accident frequency rate by 70 percent. Other companies have experienced similar reductions partly as a result of our efforts. I have actively lobbied for a compulsory motorcycle helmet law in West Virginia, which clearly saves 20 to 30 lives per year-about the same number that are killed in mine accidents, incidentally. And I have each year fought to retain that law, sometimes virtually by myself, and we have been successful while many other States have lost the battle.

In 1972, I submitted testimony in the oversight hearings on OSHA, and was active in the attempt to adopt a State implementation of OSHA in West Virginia.

I am also a member of the National Safety Council board of directors and the traffic conference. I took an active role in getting the National Safety Council to support the 55-mile-an-hour speed limit, and I lobbied for the airbag concept in autos. I support these concepts for safety, because I believe they have and will save thousands of lives in a socially and economically acceptable manner.

I have spoken and written much on the subject of industrial safety and the effect of Government regulations. My weekly column is carried regularly in two West Virginia newspapers and occassionally in other publications under the name of "Elmer's Tune." I have published a collection of these columns and speeches that relate to safety. I make this compilation available to this committee to use in any way you see fit.

The CHAIRMAN. Fine.

[The following was received for the record:]

"Elmer's Tune" is a weekly column published in the "Kanawha Valley Leader", and the "West Virginia Hillbilly" in Richwood, WV. In addition, columns are published occasionally in other national publications such as "Human Events" and "The Freeman".

The columns cover the wide range of interests with which the author is concerned. Occasionally a collection of columns about one subject is published together. This particular collection, Volume V, is concerned with safety. In addition to the columns, this volume contains various items used by the author in his presentation "Management's Role in Safety". This talk has been given over 100 times in West Virginia and surrounding states.

Because the columns must each stand by themselves, there is some repetition of material; but they are published here to further elaborate on the principles given in the talk.

Previous Volumes I-III were collections of general interest. Volume IV was titled "Industry and the Environ

ment.