Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-04-13
LABOR MODEST As
SHOE PROF|TEER
WHOLESALERS AND RETAILERS
ExAcTlNo MORE THAN THEIR
SHARE OF MARGIN.
STARTLING FACTS
REVEALED BY IoWANS
Senator Kenyon and Judson c. Welli-
yer Develop Evidence Of Extreme
Prof;tee riro in Shoe and Leather
Observation-Disclosures Shoe Deal
ers Exact Profit Of IS Per Cent.
Try f. G. poughertyl

Welliver, formerly NEWSPAPERS ''
la Des VI Dimes and Sioux city, VINO
now divides his time in following the
profession of journalism and DOING
considerable research work in ad-
dition. opened the eyes of the mem
ners of the special Senate sub-com-
mi,tee. headed by Senator Kenyon,
Of Iowa, investigating the alleged
profiteerng in boots, shoes and leath-
er goods, when he testified the other
day.
One OF Mr.. Welliver's assertions
was to the effect that the Washing
ton shoe dealers agreed among them
selves to add Sc per cent TO prices
they paid for shoes. He contended
that the sudden removal of war time
restrictions following the armistice
enabled retail dealers in boots and
shoes to nix their own prices and 10
make enormous profits.
Senator Kenyon said today that
the invest igation will go to the limit
tc develop how profiteering has in
creased In necessary articles since
tie war. TIE makenn of the commit
tee is striklngly nti-profiteering,
and a singing report Is expected to
be made to the senate when the COM
mittee completes its hearings.
Facts and figures in the hands OF
the committee Mr.. Kenyon said to-
day, indicate that the consumer is
paying and has been paying for
long time prices out of all proportion
20 the cost of the actual material and
labor which goes into boots and
shoes. the margin between the price
raid by the retailer to the manufac-
turer and that paid ultimately by the
consumers being in many instances
as much as 100 per cent.
Labor Not Chief Offender.
1.-The federal trade commission"
Mr. welliver informed the commit
tee, has shown that profits on CAPT.
tai in hides, tanning, shoe making,
wholesalirlg and retailing. all in
creased Internationally down to the
time regulations were enforced by
reason OF tho war. These were, check
ed by the war time regulation, but
resumed Immediately after regulation
ceased. The commission found that
labor. instead Of being the chief prof
iteer, was very modest. In a typical
rair Of mems shoes, between 1914 and
1917 the cost Of leather increased l16
per cent cost Of other materials in
creased ~ per cent, and the cost OF
labor increased about "a per cent.
That is, the cost of other materials
increased rather more than twice as
of Jah nf
leather increased more than three
times as fast as the cost Of labor
Earnings on capital showed like
results. The average earnings OF fiji
ty tanning companies were twice as
great in 1917 as in 1914. The retailers
Of Washington testified before sem
ate committee some months ago, indf-
eating that the ordinary rule in fixing
the selling prices was to add S. Per
cent to what the retailer paid for it.
Under this rule. their profits had IN
creased vastly. One firm testified that
in 1914 the business had net prots Of
s2.044: In 1917, s1s,743: in 1918. S64,-
743. These profits were after paying
all expenses and taxes, and allowing
$4,000 salary to each of two partners.
and $4,000 to manager"
ssfr. WclIiyer outlined the methods
by which the British government took
control OF the clothing and shoe In
dustries during the war. established
certain standards Of war Shoes" and
war clothes fixing a schedule of al
lowances for all operations in prodnc-
ton and merchandising. and finally
putting the shoes and clothing in the.
hands of the consumers at govern
ment-maGe price. Application of this
process to part of the production
prevented excuses by those making
and handling the uncontrolled styles.
I The Iowan argued that the committee
secure detailed information about the
various price control procedures en-
ployed In other countries during the
4 war. and ventured the opinion that
the consuming public would be will
ing to have such control in peace
time, II It would keep prices within
moderation
Only few weeks ago Mr.. Wellievr
said delegation Of municipal execu-
4 tives called on Premier Lloyd George
to urge that the whole milk distribu-
ton business OF the country be made
into national monopoly in order to
prevent waste and excessive profits.
Mr.. Welliver expressed the opinion