Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-08-11
With Other Editors
The Price of Shoes.
(springheId, Mass. Republican,. =

| tSpTluRHbiQ, Mass, Ile0uD4ICduj.
| The federal trade commission took logical
! step in passing from an investigation of the
packers to an inquiry into the manufacture
and sale of shoes. The material of the
shoe industry is to a great extent under the
control of the packing houses. And, if the
hide market is not to be charged exclusively
with the excessive retail price of Shoes it is the
principal contributing factor in the latest ad-
vance in cost.
That advance is so serious as practically to
align the manufacturers and retailers of shoes
on the side of the industrial trade commission.
Manufacturers in the eastern part Of the state
/ indicate that they will welcome measures for
! turning the industry in the direction of nor
maIity. The necessary first step, suggested
! by Charles H. Jones. president of the Common
wealth shoe and leather company, is doubtless
a resumption of the government priee-hxing on
hides. If that does not bring relief. the public
may ask for regulation of prices all along the
line from the who strips the hides from
the animals to the polished salesman who
makes your foot comfortable though wrenching
your pocketbook.
Since the price on hides established by the
government for the duration Of the war was
withdrawn, the market figures have practi-
cally doubled. The American shoe manufac-
turer has foreseen the large foreign and do
mestic demand and has bid actively for all
hides that were on the market or any
where in sight. As Mr. Jones says, We have
all been buying this way in an attempt to pro-
tect our business from the rapidly advancing
market, and that's what's largely to blame fer
causing this high price situation" Mr.. Jones
admits, 700. that the increase in wages. though
very large, have not kept pace with the increas
in prices OF the IS advance in the price of
certain grades of shoes the additional labor
cost is only 81. While fayoring the resumption
of price control and the material reduction of
the cost of leather, Mr.. Jones recommends
reduction by stages, in order not 10 cause I'M
necessary loss to the manufacturers who have
bought heavily of the stocks at current prices.
But there seems to be no doubt that the shoe
manufacturers Jared very well in the period Of
rising prices between 1914 and 1917. The fed
era1 trade commission finds that more than
one-third of the companies Investigated earned
% per cent or more in 1917. This substantial
profit was passed on to the consumer by the
retailer, who during that period increased his
own gross profit substantially In certain
grades the gross profits rose from SO to IS per
cent. In other words, while sales increased
and expenses remained at about the same Per-
centage of the receipts the profits increased.
But at time when the market steadily
rising. a natural advantage lay with the
taller
Those who know how lavishly money was
spent during the war, often by people who had
never learned how to buy economically, will
not perhaps wonder that the retailer often took
his chance to obtain larger profit But the
tire fer profteerlnG has aow passed. Tie fed
efal trade commission has shown moderate
temper in its investigation. Perhaps it will
now say what it regards fair prices for
shoes under various conditions Of sale. Then
either public opinion ~ III law must see tsat
those prices prevail.