The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-05-26
DIV Thomas O. Plant.

tMr Plant until fifteen months ago was
one of the largest shoe manufacturers in
this country. Since he has retired he has
been intrusted with the purchase OF ST.
100000 worth of shoes for the Belgian Re
explaining that the present exorbitant
Prices of shoes are due to speculation on
the part of the manufacturers was received
today by ]. Il. Walker, vice president and
general manager of the Pelletier's stores
i'll Topeka)
This year is the most critical period
in the history of the retail shoe bust
ness; leather now averages about 112
per cent higher than 1915 or normal
prices. The majority of consumers
cannot pay this advance Medium and
low grade shoes, as whole, average
rs per cent of the total shoe sales
and are sold to those who cannot pay
higher prices; necessity will force
them to wear old shoes, of which the
average person has many, or they will
have shoes repaired. A large retailer
in Boston stated that work in their
repair department had already in
creased 400 per cent.
If present conditions are ALLOWED to
continue, the cost per annum to the
consumers for shoes of the same
quality as formerly worn would be
over $500, 100000 more than was paid
for the same number of pairs bought
in 1915: but the retailer and consumer
have a redreSs-they can refuse to
two-thirdS of present prices; or the
government can protect the consumer
by placing an embargo on shipments
of leather in any form from this coun-
try.
The Big Boom.
Shoe business was booming in the
fall of 1915, leather houses advanced
prices and shoe manufacturers pur-
chased heavily, anticipating a further
increase; prices increased rapidly,
shoe manufacturers buying all availa-
BILE stock and placing 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 half their output sold
ahead; 1t was then an easy matter to
make further advances on the balance
of their output. The shoe manufac-
turers played into the hands of the
leather men by bidding against each
other to secure a large surplus of
leather.
A large shoe manufacturer bought
heavily in excess of his requirements
and sold to a leather house at an ad-
vance of 10 cents foot, part of
the same lot was sold at an advance
to the original seller, who in turn sold
1t at an advance. And so the game
went merrily on, the shoe manufactur-
ers holding the bag and the leather
houses marking up their goods from
month to month and later from week
to week until January, 1917, when
the maximum was reached.
Had importers. packers and tanners
been satisfied with their normal per-
centage of profits, the price of leath-
err would have advanced about 25 per
cent instead of ZIP per cent.
Tanners Caused Shortage.
The apparent shortage was caused
by the largest tanners making unus-
ually heavy purchases or hides and
skins at advanced prices, altho car
rying extremely large stocks previous
ly obtained at normal prices, thus
forcing competitors to buy at greatly
advanced prices. This put the tanner
in the position of owning an enormous
stock of hides and skins averaging
close to normal prices, which they
were able to market at unconscionable
profits. The leather houses have
made moro money the past year than
ever before. their profits equalling in
instance that of five normal years;
many shoe manufacturers and leather
houses have set aside liberal amounts
to cover their losses when the market
breaks; some of the largest houses
have set aside from 100000 to 49,
10000
In the leather trade one small house
profited in a year to the extent of five
times its capital several made zoe
per cent and more on their capital
a stockhClder in the so-called sole
Leather trust stated, lit was only a
matter of conscience as to what they
could get for leather" They could get
whatever prices they asked, and were
acting accordingly; they were selling
leather at a profit of 20 cents per
pound. Altho claiming great short
age of hides, this company sold 1900
900 more sides of sole, betting and
harness leather, and increased their
business S24,O00,0OO over 1915. Their
profits, including the extra deprecia-
tions. nearly equaled the combined
earnings of the three previous years.