The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-15

concerns and the latte killed by the
FIVE large packers arc uniformly
heavier than these killed by the
smaller ones These FIVE large meat
packing concern thus have a high
degree of contro, of the grades Of
domestic hides chat are reputed to
produce the bes. grades of leather
Somewhat less than half of the hides
used by the tanners of the United
states are imported. -Four of these
five large packers produce Il large
proportion of the cattle hides that
are available for import into this
country. In these classes of hides
that enter into the production of the
higher feathers there is not the same
degree of control in the hands of
packers as in the heavier grades. Yet
slime of these same packers are very
important factoiS In the country hide
trade. Taking in,o account the extent
to which these FIVE large meat
packers control the domestic hides,
the extent to which they control the
hides that are available for import
and the extent to which some of them
are engaged in the country hide bust
ness. and taking also into account the
extent to which they are engaged in
the tanning BUSINESS. they. seem to
be in position largely to control the
hide market.
The system Of handling and market
ing country hide. Is not satisfactory.
The farmer, and often the small
butcher, usually, sell their hides
without grading. AS consequence of
this method of purchasing hides from
the primary owner, it Is often the
case that no distinction lis made be-
tween those hides that are well
taken of and wen cured, and those
| that are not
The Tanning Industry.
| During the foui years. 1914 to 1917.
the cost of producing sole leather in
| creased from 8 to more than 20
cents per pound OF leather produced.
About IS per cent of the increase was
due to the Increased cost OF hides.
i he increase in cost other than for
materials, including overhead expen
SEES. during -four years ranged from
about 1-2 to cents per pound OF
leather produced. For upper leather
the increase in the conversion cost
between 1914 and 1917 was, in some
cases. as much as 100 per cent,
Though the total cost OF producing
this class of leather. including the
cost of the .hideA was approximately
only 10 per cent. The cost of pro-
Iducing kip upper leather, including
he cost of the hides, increased dur
ing the four years about IS per cent
v lille the cost Of producing calf
llcatherf increased little more
The earnings on investment In the
tanning business were very much
greater in 1916 and 1917 than they were
i'm 1914 and 1915. The poorest results
were in 1914. OF SO representative
companies "a earned less than 10 per
lcent in 1914, and IL had earnings of
lover 20 per cent In 1917 only OF
the So companies earned less than 10
per cent 80 earned over 20 per cent
and earned over 40 per cent
Manufacturing Industry.
There was a great increase in the
cost of producing shoes between 1914
and 1917, the principal increase being
In the cost of leather. Between 1914
and 1917, the cost OF leather increased
from 40 to 100 per cent--in a major
ity of shoes the increase was over so
lper cent The cost Of materials other
than leather. such as Innings. trim
mings. cartons and packing cases, in
creased at approximately the same
rate as leather. Labor and general
lexpense did not increase at so great a
]rate as either leather or other mate
lrials There was but little difference
lin the rate of increase in the various
elements Of cost OF shoes except for
Misses shoes which had a greater in
Icrease in leather cost than any other
jclass. and children's and infants shoes
(which had greater increase in cost
for materials other than leather. It
Ishould be noted in this connection that
Heather constituted from so to 70 per
Icent Of the total cost OF all classes of
Ishoes in 1914, axcept infants, and by
1917 this percentage had increased to
iabOut GO to rs per cent
The manufacturers selling prices OF
shoes increased at a somewhat greater
Irate than costs. In 1916 costs in many
instances were less than 1917. but re-
lductions In selling prices occurred in
only about half OF the shoes showing
Ircduced costs
The rate OF return on investment
Twas much greater in 1916 and 1917
THAN in 1914 and 1915. Out Of 256
companies where comparisons. could
be made for these years, twenty three
had losses in 1914. BY 1915 earnings
had increased until there were only
three companies with losses, and in
1917 there were eight. There were
l02 companies out of 236 that had
earnings OF Is per cent or more in
1914, while In 1917 there were 1859
companies in this class. More than
one third OF the companies here con-