Evening journal., 1919-09-18
DECLARE Shoe
DEALERS GOUGE
Iashington { o m m lite e
Ready to Frame Laws to
Protect Consumer
FIGURES SHOW PROFITS
AS HIGH AS SO P. {.

WASHINGTON, Sept is.-After hear
Ing testimony showing enormous
profits in shoes since this country en-
;ered the war the Senate District sub
committee, which has been conducting
an investigation into pronteerins in the
national capital. announced that lis
hearings were closed.
senator Ball, chairman OF the COM
mitiee. said that the committee would
now get down 10 work on its report
and that ne hoped recommendations
for legislation which Will protect the
consumers against the proilteers would
be forthcoming.
This is in line With the suggestion
of President Wilson that Congress en-
act laws 20 protect the public against
pronteering in Washington. 50 that such
laws might become models for the
States.
The figures produced by the retail
shoe dealers OF this city. who were
heard yesterday. tell the story Of excess
sive profits. running as high as 80 per
cent. on the capital invested and 40 or
+. VI. Robertson, representing The
Federal Trade Commission, whose re-
port on the shoe Industry was recently
published, testified that the profits OF
The shoe men. producers, Wholesalers
and retailers, had been very high since
the war began. The retailers made the
plea 10 the committee that very large
risks must be faced by shoe dealers
and that therefore they are entitled TO-,
and must figure on, large increases in
The selling price over the cost price.
They insisted also that the people OF
Washington are demanding luXuries in
the lines OF shoes, that they are not
content 10 purchase conservative shoes
at lOVer prices; that until the people
arc cdlcated mp 60 the adVisabilily Of
using standard-grade shoes at lower
prices. they will find the price of shoes
forming considerable Item in the high
cost OF living.
Arthur Burt, one OF The shoe dealers
who testified yesterday. told the commit
tee that "A conference had been held
with the War Industries Board and
other Government agencies for the pur-
pose OF establishing regulations dealing
with the sales Of shoes, and that 10 was
decided at that conference that 10 per
cent. on the selling price was a reason
able profit TO the retail dealer and 40
per cent. a reasonable profit on the
sale. In The regulations. which. he
said, never were put into effect because
Of the signing Of the armistice. these
percentages were used.
Mr.-ftobertson put into the record
aF hn "a 80
the Federal Trade Commission on
shoes. recently made public. lie told
The committee that the figures gathered
10y the commission showed that the eX-
pense OF producing and selling shoes
did not keep pace with the increase In
the prices OF shoes. He said that he
was convinced that the profits made
by the tanners. the manufacturers, the
wholesalers and the retailers OF shoes
had all been excessive since 1917. lie
spoke particularly OF the sale OF mill
iary shoes TO officers and others at
tending the army training camps and
charged that prices had been "out-
rageously high"
"The retailers" he said. have made
more money since the war than ever
before"
He said that a committee Of shoe
merchants had told the commission
that good retail shoe merchant turn
cd over his stock from two and a hall
10 four times a year. Mr.. Robertson
said that since the retailers maintained
the same margin Of profit on their sales
as before the price OF shoes Jumped
from 80 TO 100 per cent, It must fol-
low that their profits had greatly in
creased
I'VE have complained" he said, be
cause large industrial concerns have
made big net profits and paid big divi-
dends. For my part, do not see why
the retail shoe dealer should be allow
ed TO make these very large profits any
more than the industrial concerns"