The daily banner. (Cambridge, Md.) 1897-2008, 1918-01-26
HIGH COST OF SHOES
BLAMED ON PACKERS
Trade Commission, in Report to Con-
gress, Says Hoarding OF Leather
Sent up Prices-No Shortage of
Cattle.

| Washington, Jan. 24-Hoarding
| of hides by meat packers, while shoe
| prices have been climbing upward
| and excessive profits to the packers
| who practically control the hide mar
| ket, are charged in report by the
| Federal Trade Commission submitted
| today to Congress. The commission
points out that slaughtering of cat
| tie and calves in the United States
increased during the last five years
| by 100000 head, or virtually 80
per cent.
Such a record of food animals
ought not at the same time to mean
| that the country should be forced to
pay abnormally high prices for lea
ther products made from the CORES
pondingly increased takeoff of hides"
the report declares.
Estimates of the International In
stitute of Agriculture up TO 1916 do
not Indicate any shortage in the
world total of cattle, the report said.
The commission reported that the
quantity of hides stored by the big
five" Chicago packers - Armour,
Swift, Morris, Cudahy, and Wilson
increased 45 per cent. during 1916
and the first half of 1917. These
five concerns were declared to be the
chief factors" in the hide market
While they had on hand Jan. 81,
1916, a total of S8,633,193 pounds of
hides, the amount had increased to
127,694,1 1853 pounds mp to July 81.
1917.
Stocks held by the smaller pack
ers showed an even more striking in
crease, amounting to S3 ner cent. in
the same period, although the total
was only 2G0S6, 102 pounds on July
81, 1917. The grand total held by
275 interstate packers, including the
big five," Increased from 9S,9SO,-
1875 pounds to 147, ,7S0,271 pounds.
Imports of hides also were found
by the commission to have increased
in 1917 TO per cent. more than in
1912. These great increases in i'm
ports have been principally from Ar
gentina, Brazil, and Uruguay, where
the large Chicago packers are promi-
nent factors in the hide business.
The commission reported that the
values which the packers have plac-
ed on theif hides are much greater
than the Increase in the price they
nave ,pdlu IOT Cdllle. " ull6 the lar
mers received only II per cent more
for their cattle from Swift's five
principal plants in 1867, the val
ue Swift 4 Co. put on their hides
from the same cattle, according to
the report. increased 35 per cent.
Phenomenal increases" in the
leather profits of Armour and Swift
were reported by the commission.
Net profits of the larger tanning
companies in 1916 were said to be
from two to five times as large as in
1915. One unnamed company, said
to have made $644,390 in 1914,
cleared s3s576,544 in 1916
Although stocks of hides were
fonna N ecoDlmission to be alb
normally arge, many tanning s0nl-
panies reported they were operating
at far fro1h capacity.
1T has been suggested that the
prices of hides are so high" The re-
port declares, that tanners have
been keeping out of the market in
the hope that prices would decline"
Exports of mems shoes were found
by the commission to have dropped
from the high level of 100000
pair in 1916 to slightly over 6,0O0,-
600 in 1917.
Apparently the large demand of
our own army has been offset partly
by lessened exports" the report con-
cludes.