El Paso herald. (El Paso, Tex.) 1901-1931, 1919-10-01
Why Are Shoes
High? The IT, S.
Does Not KnOqU
Federal Trade Commission
Fails to Find a Reason,
But They Stay Up.

Washington. D. c., Sept eff the
/ advance in shoe prices announced BY
/ manufacturers and retailers goes into
effect this fan, you viii pay any
+ where from SIS to SIS a pair for your
+ winter shoes
( Authorities differ as to the cause
OF this situation The federal trade
commission has reported TO congress
that there is "profiteering going on
in the shoe industry" and some Of
7 the more radical members would
/ commander every hide in the coun-
J try. others would put a temporary
embargo on the export OF footwear
and other leather products, and take
every other possible step to prevent
profiteering in the shoe business.
Manufacturers claim that an en-
barge would not help the situation
They say that the world is approach
ing a sort OF leather famine and,
while we in the United States appar-
emily have plenty Of leather. we can
not escape from world conditions.
They assert that an embargo would
place Us in a still worse position, for
the reason that we import half Of
the number Of hides used annually in
this country.
Senator capper. OF Kansas. Ike
many other members Of congress,
favors president Wilson's plan OF
marking the manufacturer price on
every pair Of shoes. He thinks this
would cut out much profteertng on
the part Of the middleman and would
also tend 10 deter retail dealers from
making excessive profits.
Can RUSSIA Helpl
The tanneries Of continental Europe
have been completely demoralized by
the war, and It Is a well understood
fact that upon the completion OF the
peace treaty, raw materials for tan
ming will be in abnormal demand to
rehabilitate the idle tannerfes. The I
stocks OF hides and skins throughout /
cicnt, except that OF Russia, about /
which nothing IS known It is hoped I
that large Accommodations OF skins are I
held there and that ultimately they j
will be available and can be added 70 I
the dwindling stocks Of the world.
Hides are a byproduct and do not 4
follow the ordinary law Of supply and I
demand Cattle are not raised or I
slaughtered for their hides. The hides 4
are produced incidentally. IN quanti- /
ties determined by the sale OF beef.
The slaughter OF cattle was greatly .
stimulated by the war by the con-
tracts for canned beef TO feed our
armies, and also for export to feed I
soldiers of countries allied with US.
This increased the supply OF hides
automatically but the war developed /
an enormous new demand for leather.
and much Of the increased supply was
used up in this way.
No Reason For 1t.
The federal trade commission, after
a very thorough and exhaustive in
vestigation OF the whole matter,
finds that "the high prices OF shoes
cannot be justified by the underlying
economic conditions"
According to the report. a good
work shoe for men that cost the
dealer s1-75 in 1914 and retaued for
$3.50 cost him S2-75 in 1918 and re-
tailed for 81 In this instance the
took a margin OF IS cents IN
1914. while four years later his mar
gin OF profit was s125. The margin
Of profit on other grades OF shoes
showed about the same advance
In summarizing the whole stu
alton, the commission reports
that, taking into consideration
all the circumstances, the higk
price OF shoes in 1917 and 1915
cannot be justified.