Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-08-26
HaSkin.

the resumption of free trading, should have
the effect of lowering prices abroad while
correspOndingly raising them in the United
States. In considering shoe prices world
conditions must be faced.
"A similar situation exists in leather. The
tanneries of continental Europe have been
completely demoralized by the war, and it is
a well understood fact that upon the compile
zion Of the peace treaty, raw materials for
tanning will be in abnormal demand to re-
habilttate the idle tanneries The stocks of
hides and skins throughout the world are
known to be insufficient, except that of Rus
STA, about which nothing is known. 1t is
hoped that large accumulation of skins are
held there and that ultimately they will be
available and can be added to the dwindling
stocks of the world.
1T is we'll understood in the leather in
dustry, that hides a by-product and do
not follow the ordinary law of supply and
demand. Cattle are not raised or slaghter-
ed for their hides. The hides are produced
incidentally, in quantities determined by the
sale of beel. The slaughter of cattle was
greatly stimulated by the war by the con-
tracts for canned beef to feed our armies, and
also for export to feed soldiers of countries
allied with This increased the supply
OF hides automatically but the war devel-
oped an enormous new demand for leather,
and much of the increased supply was used
up in this way
The report also shows that because of the
present high price of meats the demand for
it has became much less, and this means
less leather
In sharp contrast to the statement made
by the Shoe and Leather Reporter, the fed
eral trade commission, after very thorough
and exhaustive investigation of the whole
matter, finds that "the high prices of shoes
cannot pc justified by the underlying econom-
lc conditions. The commission reports that
the larger packers control the supply of
n III ana nave made excessive profits out
VI tnls business. 1t is also asserted by the
commission that the manufacturers of shoes
nave also charged unusual margins and that
the prices charged by the retailers are not
justifable'
The commissions Investigators found that
there was great advance in the cost of
producing shoes between 1914 and 1917 the
principal increase being in the cost Of leather
In this period, the cost of leather advanced
from 40 to 100 per cent. Other materials
used IN the manufacturing of shoe increas-
ed at about the same rate, excepting labor
and general expenses, which increased con-
siderably less
According to the report, a good work shoe
Tor men that cost the dealer $175 in 1914
and retailed for $3.50, cost him $275 in
1918 and reta1led for $500 In this instance
the retailer took a margin of rs cents in
1919, while four years later his margin of
proht was $l.25 The margin of profit on
other grades of shoes showed about the same
advance.
In summarizing the whole situation, the
commission reports that taking into consid-
Grafton all the circumstances, the high prices
OF shoes in 1917 and 1913 can not be iusti-
ned. Leather manufacturers, shoe manu-
tacturers and retail shoe merchants all made
unprecedented profits
The commission suggest to congress that
some relief from the intolerable prices paid
by consumers for shoes may be had by rigid
enforcement of the antitrust laws; by legis-
lation forbidding producers Of hides engag-
ing in the tanning business; and by the
adoption of a device, in the distribution of
Shoes that will acquaint the consumer with
the selling price Of the manufactured