The Washington herald., 1919-09-17
CLASSY SHOES
DEMANDED HERE
That's Why Prices Are
High in Capital, Dealers
Tell Committee.

must have the best obtainable.
Their elite tastes have been exem-
plifed in hearings on the high cost
of food. and yesterday they were
brought out in a hearing on shoes
before the Senate District Commit
tee investigating profiteering.
This was made an important ar
gument by retail dealers on the
cause for high cost of footwear m
the Capital T. NJ. Robertson. of the
Federal Trade Commission. and
some OF the shoe merchants them
selves testified that large profits
have been made in Washington on
shoes since the war began. From
20 to 80 per cent has been realized
on their investment and from 10 to
Il per cent on their sales, il was
shown.
The merchants declared that until
Washington people learn to be sat
isfied with standard makes of shoes,
footwear will be large item in tn"
cost of living.
Arthur Burt Testines.
Arthur Burt told the committee that
a conference had been held with the
War Industries Board and other gov
ernment agencies for the purpose Of
establishing regulations dealing with
the sale of shoes, and that 1t was de-
Cided at that conference that 40 per
cent on the selling price was a rea-
sonable profit to the retail dealer and
10 per cent a reasonable profit on the
sale. In the regulations, which he
said never were put into effect be-
cause OF the signing Of the armisuce,
these percentages were used.
Other witnesses heard today were
Herbert Rich of b. Rich's Sons Com
pany; Newman G. Little of Snyder &
Little, and :. M. Meyer.
Mr.. Burt testified that his invested
capital in 1917 was approximately Sep,-
900 and in 1918 about the same. His
gross sales in 1917. he said. were ISO,-
OoO and in 1918 s23l. 900. His gross profits
were $1,000 in 1917 and in 1918 &A ,Ooop.
His net profits in 1917. he said, were
sls,0OO and in 1918 $500 He said that
the net profits were figured after the
taxes had been paid
Viii Clear the Atssssphere.
Mr. Burt told the committee that
shoe dealers must have as much as 20
per cent gross profit on their sales TO
make Is much as a bricklayer. he
congratulated the Federal Trade Com
mission on having started its investl-
CATION of the shoe business. he saIo
that il would clear the atmosphere II
the people are informed as to the
risks and costs Of the shoe busines.
He declared that in his opinion
there had been no prohteering. gen
orally speaking. in the retail shoe
business in Washington. although
he admitted that there may have
been cases here and there.
Herbert Rich, manager for B.
Rich's Sons, told the committee that
the capital invested by his company
in 1914 was $1,000: in 1917. $4,000.
and in 1918. Sill. 900. He said that
the gross sales in 1914 amounted to
s171.OO0; in 1917. to 325s,0oo. and in
1918 to $4,000. The gross profits
in 1914 5000; in 1917. Sc. 900, and
in 1918, $4,000. He said that the
net profits in 1914 were $4,000: in
1917. $4,000. and in 1918. $4,000.
Expenses Greatly Increased.
He testified that the company is
selling % per cent more shoes today
than it did in 1914. Expenses have
increased greatly. he said. Rent
has doubled. and wages are two and
Onehalf times as much as they
were in 1914.
Mr.. Meyer. of S. Meyer. Inc. tes-
tilted that shoes were a side line
with his firm and that they never
kept any separate account of
shoes. He also said that his COM
pany did not establish any fixed
margin of profit on shoes
Mr. Little testified that his gross
sales in 1916 were $4,000. in 1917
s116 600 and in 1918 S21l.O0O. His
gross profits for these years were
341 900. $4,000 and SsS.o00, respec-
lively. The net PROFITS were $1,000,
s1l 900 and $4,000. respectively.
Mr.. Little exhibited to the COM
mittee three styles of shoes for
winter to demonstrate the rapid
change in styles which make the
shoe business hazardous. He de-
Clared that the people. by demand
ing novelties in shoes. make the
cost higher.