The Washington times., 1919-09-16
DEALERS
HERE CALLED.
PROFITEERS
Compiler of Trade Commission
Report Says Excessive Prices
Are Charged.

Washington retail shoe merchants
are making the same excessive profits
that other shoe retailers are making
throughout the country, T. NJ. Robert
son, who compiled the report OF the
Federal Trade Commission on the
rubber and shoe industries, informed
Senator Balls subcommittee today.
Profits OF local retail shoe men
were Investigated by the committee
today, when il resumed hearings on
tn high cost OF living in tn District
of Columbia. The committee hoped
to conclude with its shoe hearing this
afternoon.
Asked II the Washington retail shoe
profits were excessive, Mr. Robertson
replied that while the commission
had no local figures, except on mill
tary shoes, he had reason to believe
conditions are no different here than
elsewhere. The profts on military
hsoes realized by Washington firms
he described as "oUtrageously high"
These were the witnesses heard by
thecommittee today. in addition to
Mr.. Robertson: Arthur Burt, Her
bert Rich, S. N. Meyer, and Herman
c. Little. Of Snyder & Little.
Making More Than Ever.
Mr.. Robertson said the retailer is
getting a much larger return on his
investment now than in pre-war
years, as a report OF the commission
would show. Due to the increased
number Of sales, the retailer Is max
ing a much greater profit in dollars
and cents than ever before, he ex-
planned, although the percentage of
profit is about the same on account
Of increased cost of production and
material.
Mr.. Robertson read from the re-
port OF the commission showing the
profit on military shoes sold by the
Myers Military Shop, Arthur Burt,
Parker Bridget, and Rich. Of Wash
ington. Some OF these margins for
1918 were as high as u per cent. and
the average was between 45 and IS
per cent.
The profits Of 2s7 shoe manufac-
turers in 1914 averaged ISL per cent
and jumped in 1917-191s to 26.1 and
24.7 per cent.
IS Per Cent Excessive.
Robertson said that a committee
OF retail shoe men had told him that
a good retailer would turn over his
stock between two and one-half and
four times a year. He explained
that a retailer who bought shoes at
81 a pair and sold them for SO would
realize a profit of IS per cent.
Il would call IS per cent excess
profit" Robertson said. He told the
committee he did not see why retail
ers should be allowed to make a
greater profit than industrial con-
Germs
NJ Doho-t,oz ,,zI.f-s IL. .r.-.
were at least two-thirds more shoe
retailers than are necessary, which
adds to the high cost Of living.
cit is difficult to escape the conclu-
sion that the greater the number of
shoe merchants the higher prices CO."
he said. He admitted that the public
was largely to blame.
"If the public wanted TO, IT could
correct the evil. but it doesn't seem to
care about it," he said.
Arthur Burt TestIAes.
Arthur Burt, president Of the Ar
thur Burt Company, was the first
local shoe merchant to Ge csl:ed HL
said his capital inves'eI in stock IN
1917 was about S60.a0O. Sales for
1917 were S1SO,OOO ana for J9lS were
S231,OOO. His gross profit in 1917 was
$75O48; for 1918, SS4,7O9. His net
profits in 1917 were SIS,4O5; for 1918,
SIG, 1863.
Mr.. Burt explained that the prices
OF shoes are not fixed. He said that
conferences Of the War Trade Indus
trial Board resulted in a set of reEu-
lations which were to have gone into
effect in June, 1919. These reguIa-
tions, he said were absolutely salts
factory to the Government.
With the signing OF the armistice.
ne said the regulation were prevent
ed from going into effect. Mr.. Burt
admitted that II these regulations
we're in effect now. they would have
& tendency to keep prices down.