South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-01-24
PROFITEERING
IN LEATHER
IS DISCLOSED
Enormous Increases in Gains
of Packers and Tanners
Despite Larger Stocks of
Material Than Ever.
international News Service:

international News Service:
WASHINGTON. Jan 24.-Start-
ling increases in the profits of the
leather business Of Swift & Co. AMI
Armour & CO. are shown by their
books for 1856. according 10 a
federal trade commission report
made to congress this afternoon.
Stocks Of hides are abnormally
large. the commission says, while
many tanning plants are operating
at far from capacity
Reports of profits Of tanneries
are not complete. the commission
says. but profits OF from two to five
percent for 1916 over previous years
are indicated. The commission in its
report which is preliminary in
character. indicates that it considers
that present excessive prices for
shoes and leather products are un-
justified. I'm part the report says;
Prices Exceedingly High.
Exceedingly high prices are at
present being charged for shoes and
other leather products. for leather
itself. and for packer hides from
which the better qualities of leather
4
fact that very large stocks Of packer
hides are ON hand. Slaughter of
cattle and calves in the United States
mas increased by 5.1O0 600 head dur
ing the last five years. Another sali-
ent fact is that the profits of the
largest packers in the hide and
leather business and OF many OF the
larger leather manufactures have
been excessive during the last two
years.
Investigation OF the cost OF shoes
has not progressed far enough, the
commission says. 10 warrant definite
conclusions The present supply Of
hides however. is much larger than
.u previous years.
No Shortage OF Cattle.
The commission definitely declares
that estimates of the international
Institute of Agriculture mp TO 1915
does not indicate any shortage of the
world total of cattle.
The quantity of hides" the re-
port continues. stored 10y the five
large Chicago packers. swift q Co,
Armour 4 Co. Morris & Co. Wilson
4 60. Inc. and Cudahy Packing Co.
Increased a. percent during 1916
and the first half OF 1917"
Figures are then cited 20 show
the increase Similar conditions pre-
vail among the smaller packers, il IS
declared. Imports into the United
states by the packers from Argen-
tine. Uruguay and Brazil also have
materially increased. the report
says.
From 1919 TO 1917 prices OF pack
ers increased. the report SAYS from
IS 10 100 percent and increases ou
hides are much greater than the iu-
creases paid for cattle While prices
OF packer hides have Increased
prices Of country hides have been
held down through lack of demand.
This is said TO be due to government
contracts specifying packer hides
and 20 the British embargo on hides
levied Co save tonnage.
Make Enormous Profits.
After declaring that tanning com-
ranies are making enormous profits
tine commission cites an unnamed
company which i'm 1914 made "a net
profit Of $6f4.290 and I'm 1916 clear
ed s2.576.544
Because of the hiEh prices OF
hides. 10 also Is stated. tanners are
keepiug out Of the market as much
as possible hoping 90 force lower
Guotations.
Exports Of mems shoes have drop
ned from 100000 pairs n 1916
To slightly over six millions in 1912
ard this. the commission SAYS. on
SETS the army demands