The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1917-03-31
WHY SHOE PRICES SOAR.

- VI = NNfEANlt ~ tHt 0N'Ndht
individual. OF course il was realized
that owing to he unprecedented de-
m that were being made for our
shoes by the warning nations in Eu-
ropo there would naturally be some
rise IN the cost % shoes. But. like
man other things that have gone sky
ward in price. the consumer was un-
able 20 understand why there should
have been such an a. ware Jump.
Thomas q. Plant. for many years
IN the business Of manufacturing shoes.
now retired. In a recent interview de-
clnred the present situation was
brought about by unnecessary specula-
tion. A part OF his interview follows;
''rhe present exorsi,ant prices OF
leather were caused by unnecessary
speculation though m public and
great scarcity Of hides nd skins was
she cause. We imported in 1915 u
per cent more hides and skins than IN
1915. which years import we're much
gsea;er than previous years-our do
mestic supply OF hides was also Frea'-
er than 1915. shoe manufacturers
mad ali the leather necessary to man
ufaeture ~ci.oOo.o0o pairs more shoes
than 1915. which had been h ban
ner year IN the shoe and leather In
dustgy. largely owing TO the millions
OF pairs cf army shoes aud feathers
exported to the warning nations, which
al present writing has nearly ceased
shoe bnssness was booming In the.
an of 1915. leather houses advanced
paces and shoe manufacturers boughI
heavily. ANTICIPATING a further increass
prices increased rapidly. shoe manu-
faotlAers buying all available stock
and blacing large orders for future
deliveries.
The shoe manufacturers owned
more leather than ever before. while
the leather houses were completely
sold out The tanners and packers
were thus placed in an Independent
position. having little or no stock on
hand and approximately half Of their
output sold ahead. II was then an
eany matter 10 make further advances
on the balance OF their output. The
shoe manufaa turers played into tho
hands of the leather men by bidding
against each other in their efforts TO
secure a large surplus Of leather
"A large shoe manufacturer bought
heavily in excess OF hts requirements
and sold to a leather house at an ad-
vance OF 10 cents per foot, a part OF
the same lot was old at an advance
10 the risina seller, IN In turn
sold again at an advance And 30 the
game went merrIly on the shoe manu-
<feetufers holding the bag and me
S,gher houses marking up their
goods from month 10 mont and latcr
from week 10 week until January. 1915
when the maximum was reached.
''There was q need Of a reasonable
advance In prices owing 10 unusual
costs OF production, ocean freight in
sarance. etc. but had importer
packers and tanners been content with
their normal percentage OF profits
the price u leather would have adj
Nanced about rs per cent 10 so per
cent. rather than to he per cent or
more. aud there would not have been
an apparent shortage, as shoe manu-
facturers and retailers would have
purchased only in accordance with
their actual requirements, but few Of
me largest importers. tanners and
packers aaw an opportunity 10 largely
control prices az leather. and taking
Advantage 90 conditions which they
slmos, wholly created forced leather
10 exOrbitapt prices. claiming a great
scarcity OF hides and skins
The apparent scarcity was caused
by the largest tanners making uH-I
usually heavy purchases II hides and
skins AZ advanced prices. although
carrying extremely iarge stocks pre-
viousiy obtained AZ normal prices, mus
forcing competitors 10 buy az greatly
advanced prices This put the tan-l
ners la the position Of owning an
enormous stock Of hides and skins
averaging close 10 normal prices
which they were enabled 60 market at
unconscionable profits. The leather
houses have made more money me
past year tina ever before, their prof
It's equally In instances that Of i've
normal years. many shoe nyinufactur-
ing snd leather houses have SCI aside
liberal Ia cover their LOSSES
when tse market brcaks' some 81 me
lsrrest houses have set aside from
sioe. 900 10 100000 e
I'm the lsathNs trade one sHaii
a..,,.e pyofssed ~ = year 70 b extent
OF ave times IL capital several MADE