The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1919-08-14


leather and leather goods for the al
lied nations of Europe had
marked effect on prices. The demand
was not only for large quantities of
leather and shoes, but there was
pressure for quick delivery Either
one Of these factors would tend to
stimulate prices and both of them
together brought rapid and marked
advances in the prices of both
leather and shoes, and also of hides !
and skins.
When the United States entered the
war, there was immediate demand for
shoes and other equipment made Of
leather to meet the requirements Of
the army. The shoes needed by the
government were required to be
made of specified high-grade leather
Only the better grades of hides could
be used in making such leather, and
as a result hides, especially the bet
ter grades, rapidly advanced in price.
The situation became so acute that in
1918 the war industries board under
took to provide means of supplying
the tanners with hides at fixed mini
mum prices. Maximum prices for
leather was also fixed for the shoe
manufacturers. The demand for Ia
Dor in other industries compelled tan
ners and shoe manufacturers TO in
crease wages.
Retail Price Of Shoes
Taking into consideration all the
circumstances, the high prices of
shoes in 1917 and 1918 can not be
justified. Leather manufacturers,
shoe manufacturers and retail shoe
merchants all made unprecedented
profits.
1t should be noted in this connec-
ton that prices were bound to adj
vance considerably between 1914 and
1917, even though as large profits
were obtained. There was an in
crease in the cost of hides and ali
other materials used il1fhe manufac-
; ture Of leather. The Noe manufac-
; turer had to pay much higher prices
. for leather and other materials and
also more for labor as the war prog
ressed. While the shoe merchant did
. not take larger percentage of profit
on the cost Of shoes the application
OF the same percentage during the
| war was used prior thereto, gave him
. much larger absolute profit per pal,
1 of shoes.
The best standard for judging
! whether or not the prices of a com
i. modify are reasonable is the percen
!: tage of the profit on the investmen
employed in it's production and sale
; Measured by this standard, slaugh
terers took more than they shoult
!: for hides, tanners charged more TO,
!; leather than they should and sho,
! manufacturers likewise charged to,
{ much for shoes. Even in 1914 tn,
I tanning industry was prosperous; il
: perhaps majority of cases earning
!: were 10 per cent or more and only
{ very few suffered losses. By 1916 an,
: 1917 1t was rather unusual for !;
: company to earn less than 60 pc
I cent. A similar comparison for man
{ rfacturers of shoes shows that NOR
: than twice as many made a profit O
! 20 per cent or more in 1916 and 1911
{ ss did in 1914.
III The rate of return on investmen
{ to shoe merchants cannot be stated
! tut it is evident from the volume c
: business they had and from the gros
8 margins of profit they secured pc
I pair of shoes, that their business wa
! very profitable. Taking into consid
4 Grafton all the circumstances, espec
( tally the circumstance that the Unite,
+ States was engaged in war, the larg
: profits taken by slaughterers 70
i hides, by shoe manufacturers and re
!; tail shoe dealers cannot be justified
! and there is consequently no justif
/ cation for prices that consumers hay
{ been compelled to pay for shoes
+ Some relief from the intolerabl
! prices paid by consumers for shoe
/ may be had by (D a rigid enforce
: ment of the laws against monopo,
+ istic control Of commodities; (2l les
! islation forbidding producers of hide
Z engaging in the tanning business, an
i 80 the adoption of a device in th
+ distribution of shoes that will az
! Quaint the consumer with the sellin
/ prices of the manufacturer.
Z The complete report will be read
! for distribution within a week {
= ten days.
! MASTERS SALE