Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-08-07
ALL BRANCHES OF SHOE
INDUSTRY GOUCE PUBLIC
Federal Tradc Commission Tells of
Excessive Profits I'yramidcd From
Cow to Consumer.
SAYS PRICES UNWARRANTEp
Investigators Report on High Re-
turns Made by SIauahtcrcrs, Tan
ncrs, Shoe Manufacturers and Re-
tailcrs at Expense OF Public.

| wAsHINCiTOS, August a.-Unprecc
denied profits taken by slanEhterers.
which there was no iustiiication arc
responsible for the high prices OF
shoes Sr snc c0ns sgsrs MS informed today
which recently completed an Inquiry
into the shoe business for tho period
The commissions complete rcpor:
was not available. hut Presden, will
son was understood TO have ordered
connection with efforts OF the govern
meni to combat high living costs.
Missouri: now has pending in the House
resolution providing for an inquiry
hut nto MS Ihos p1iees Is by the
peatedly have met with failure.
After reviewing profits in each see
"intolcrable prices" paid by consumers
might be had by rigid enforcement
OF commodities: Legislation forbidding
producers of hides engaging in I'll.
t I,sgnns business business, AN, and ADOPTION Of
the selling price of the manufacturer
The high price OF shoes was declared
by every factor in the shoe production
industry in repor, by the Federal
Trade Commission 10 Congress made
charged with having begun the pyra.
miding OF shoe prices by an unwarran-
ted increase in the price OF hides. the
troll ON top of this increase. il was
charged. the tanners have taken "ex-
ccptional profits" while the shoe manu-
facturcrs have demanded an unusual
margin and the retailers have charged
prices that are not justifiable."
While noting that because OF in
creaSeS in the costs of materials dur
ing the war period prices were bouno
to advance considerable even though
commission said leather manufacturers,
shoe manufacturers and retail shoe
merchants all made unprecedented pro-
tits"
was prosperous" said the report. I'm
perhaps majority Of cases earnings
few suffered losses. By 1915 and ielT
IT Was rather unusual for "a company
10 earn less than. 20 per cent. a SINH
lar comparison for manufacturers of
shoes shows that more than twice as
many made proft Of 20 per cent or
more in 1916 and 1917 as did in 1914
The rate OF return on investment
10 shoe merchants cannot be stated.
but it is evident from the volume Of
'hey r had and from the
pair OF shoes that their business was
very profitable.
Taking into consideration all the
circumstances. especially the circum-
stance that the United States was en-
gased IN war. the large profit taken
by and 9 re,a qfs SHOE by
cannot be justified and there is con-
sequcntly no Justification for prices
to pay for shoes"
! To show that the packers during
! the last four years have made Un-
! warranted increases in the price of
| packer" hides, the report pointed out
that the price differential between
! their hides and country" hideS-hides
Of lower srade--has increased FAR
beyond the usual proportion" Charges
or excessive profits against the tanner
and the shoe manufacturers were Sai
to be supported by the high rates of
return on investments in both indus
tries following the price increases.
The public. said the report had
TO pay prices for shoes that not only
could not be JUSTIFIED because retail
shoe dealers took too much profit but
because the dealer had to pass on the
consumer excessive profits received by
butchers for hides and also the excess
turerS."