The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-16
DROP IN PRICES
FOR SHOES TO Be
FAR IN FUTURE
No Prospect Of Cheaper Foot
wear for Some Time
Spring Model Unquoted.
BY WILLIAM r. SANBORN.
Fifth. Chapter.

The fact that shoe manufacturers
and leather dealers are predicting q
considerable drop in prices, would be
more comforting, were they to set the
date. and set it early. But they are
fencing for time; the drop is to come
some time" but It Is likely to be
deferred for at least another year.
This Is the concensus Of opinion Of
the men who have been quizzed by a
Boston grand jury. which was anxious
to know why the public Is paying 50
for 81 shoes, said shoes being headed
for $40 to $12 by next spring, some
dealers tell us. Well, we shall see as
to that later.
The largest manufacturers and the
best known tanners sat in at that
quiz. Were they profiteering? Hor-
rors, no; not now nor never. Their
hands were clean and their CONNER
cial characters winter than snow.
Therefore let us wear such shoes
as we have and await that better day.
Time was when shoes were not only
half-soled but retipped and patched
like farmers overalls. But the old
fashioned cobbler. like the old-fashion-
ed repair prices, Is now in the discard.
Prices ana Costs.
A. M. Legg, shoe manufacturer of
Pontiac, Illinois, enlightens us: Here
is a leather of which l use a great
deal 1t formerly went into pair of
shoes that retailed at $3.50. Last
November, after the armistice was
signed, paid SO cents a square foot
for it. In January this leather went to
80 cents; in February, "A cents; In
March, IS cents, April, IA cents; to-
day, SO cents.
Il know that retailers are now sell
ing shoes for prices for which they
will not be able to replace them. for
the latest increase in leather has not
yet been passed on to the public"
We can readily see that this leather
is no longer going into shoes to re
tail at $3.50" Little wonder that man
ufacturers feel that an embargo on
leather is the only way to save the
situation until the commercial world
comes to a balance.
No Prices on Spring Shoes.
Shoemakers are now showing
samples of spring models but are not
quoting prices, and retailers carrying
these lines are placing orders on that
basis. They feel that they can
safely do this, as they know what the
style and quality Is to be, and that
manufacturers will treat them fairly.
Not all merchants are yet buying. in
fact comparatively few have yet plac-
ed spring orders; nor are manufac-
turers at all anxious to contract at
specified prices. All are advocating
the cutting of orders to actual pros
pective needs.
Some retailers, however, are grab
4 - Lose
ly to be insured supplies, regardless
Of price. believing they can get what
ever they may ask for next spring and
summer footwear. Such buyers are,
luckily, in the minority, or prices
would tend to even higher levels.
Shall Retailers Profiteer7
What has heretofore been the &C
copied methods Of the retail shoe
trade, will, If INDUCED in this fall and
winter, amount to rank profiteering
Let us illustrate how this can be done
In normal times an advance Of SO
cents to $3.50 per dozen pairs was
some advance" Surprising the re-
taller had line of shoes to replace
of which he had 100 pairs on hand at
date of placing his order, for either
immediate or future delivery. The
replacement" cost or value was at
once taken into account, and immed
lately added to the selling price Of the
stock on hand. At five to Is cents
per pair this amounted to but trif
ling increase of profit to the seller, OF
In cost to the buyer.
But in the present instance the sit
uation should be viewed from an en-
tirely different angle. Suppose, fol
instance, that the dealer bought shoes
for fall delivery at IS per pair. before
the last three or four advances In
leather took place.
Let us premise that the present
wholesale price Of that same shoe is
$3.50, which Is not an extreme as to
absolute range in price changes. Ad
ding So percent gross profit to the S.
shoe would make the selling price
1915. which by the way is Is cents
per pair below replacement value.
Has Chance to Profit.
The question now is: Shall the re
taller figure his SIS shoes on the new
replacement level of costs, at once,
when his fall shoes come in; or shall
he sell at s6.75 as originally intend.
ed?
Shall he await the receipt of his
higher cost purchases, before advanc-
ing retail prices to their natural fu-
ture level, or profiteer because Gus
tom gives him the opportunity?
Here Is an instance where the Gold.
en- Rule exactly applies. In fact that
was the almost unanimous expression
of the representative gathering of re-
tail shoe men at st. Louis, during our
visit there last week. In this our home
merchants, were they present, would
have doubtless agreed.