Evening star., 1918-01-24
SHOE PR|CESLA
TO BOARDING HIDES
Packers Accused by Federal
Trade Commission in Re-
port to Congress.
HOLDINGS TAKE BIG JUMP

Hoarding of hides by meat packers,
while shoe prices have been climbing
upward, and excessive profits to the
packers, who practically control the hide
market, are charged in a report by the
Federal Trade Commission today to
Congress.
The commission points out that
e!aughtering of cattle and calves in the
United States increased during the last
five years by 100000 head. or virtu-
ally 80 per cent.
such a record of food animals ought
not, at the same time, to mean that the
country should he forced to pay abnor-
mally high prices for leather products
made from the correspondingly increas-
ed talte-off of hides the report de-
clarcs.
Estimates of the International 1nsti-
tute of Agriculture up to 1916 do not
indicate any shortage in the world to-
tai of CATTLE the report said.
Increase in Holdings.
The commission reported that the
quantity of hides stored by the big
FIVE" Chicago packers-Armour, Swift.
Norris Cudahy and Wilson-increase sed
IS per cent during 1916 and the first
half of 1917. These five concerns were
declared to be the chief factor in the
hide market. While they had on hand
January 81, 1916. a total of SS,033,193
pounds of hides. the amount had in
creased to 127 694,i69 pounds July 81.
1917.
Stocks held by the smaller packers
showed an even more striking increase,
amounting to So per cent in the same
period. although the total was only 20,-
oS6.102 pounds July 81, 1917. The grand
total held by 215 interstate packers. in
Guiding the big five increased from
sS.9So.726 pounds to 147,7S0,271 pounds,
or practically one-half.
Imports of hides also were found by
the commission to have increased in
1917 10 per cent more than in 1912.
These great increases in imports
have been principally from Argentina
Brazil and Uruguay" the report adds.
where the large Chicago packers are
very prominent factors in the hide
business.
Finally. the commission found that
country" hides. being the take-off of
farmers and local butchers, are very
plentiful.
Values Cut of Proportion.
The commission reported that the
on their hides are much greater than
the increase in the price they have
paid for cattle. While the farmers re-
ceived only II per cent more for their
cattle from Swifts five principal plants
in 1916-19l7, the value Swift d 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
We're 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 S644.390 in
1914 cleared S3,516,544 in 1916.
Although stocks of hides were found
by the commission to be abnormally
large, many tanning companies re-
ported they We're operating a far from
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 Is, SOC. .000 pairs
in 1916 to Slightly over 100000 in
1917.
apparently the large demands of our
own Army have been offset partly by
the lessened exports" the report con-
cludes.