The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-06-23
Excellent Picture of
Capital in the Age of
Inperialist Monopoly
CONTINUED from page ~

| ptIbuSul anu VIII buO bAOo luuuSlly
itself
The normal and maximum capac-
ity of the country's shoe industry is
not definitely known today and def
mite figures as to consumption in this
country are also lacking. 1t is gen.
orally assumed that the per capita
consumption of leather boots and
shoes in this country is about three
pairs year. The retail shoe trade
is preparing to assemble statistics
which will indicate consumption.
Export Trade Failing OF.
Many countries that formerly i'm
ported American shoes have practi
cally ceased buying here. Govern
ment export CURES point to the fact
that these countries have been i'm
porting shoe machinery and are now
producing practically all their shoe
supply.
It is the general belief in shoe cir
cles that with the compilation of the
necessary statistical data and with
the aid OF the various governmental
departments, a general amalgama-
ton campaign will be carried on in
the entire industry from tanning fac
tories to retail shoe stores.
Such phenomenon is manifest at
the present time, but slowly and
without much noise. Retail dealers
will be pushed out Of business by
hook or crook. The same will apply
to tanning factories and shoe shops
either by merging or by being forced
out Of business thru other competi-
tive methods In this war Of big fish
eat little fish the government is at
the service of the big fish.
centralIzing and Combining.
The Dunn, Green Tanneries of
Hudson, Mass, and the R. H. Long
Shoe Co.. of birmingham, Mass, both
old established firms that employed
many workeres have been sold at
auction the early part 6S this month.
Many more shoe and Ieather estab.
lishments are either merged with a
stronger one or forced out Of bust
ness. In the meantime the profits Of
the combine are increasing. An ex-
ample of this phenomena may be
seen in the expansion of the G. R.
Kinney Co., Inc.
This company operates one Of the
largest chains of general shoe stores.
It's 222 stores are located in "a cit
les and 81 states. This company also
owns or controls the majority stock
Of the following factories; Goodyear
Shoe Co., Bedford Shoe Co., Johnson
Baillie Shoe Co., j. Landis Shoe Co.,
and the Perry-Norvell Co.
A little history of this company
will prove to the most ignorant per-
son how the working class is being
robbed necessarily while the profits
are p4ling up and up.
Pouring In the Water.
In January, 1917, the business was
incorporated in New York state with
an authorized capitalization consist
ing Of $1,5O0,oOO OF s per cent cumu-
lative preferred stock and 10000
shares comon stock without par
value. In the following year the au-
thorized preferred stock was IN
creased to s2,500,000 and in Novem-
Der, 1919, the capitalization was IN
creased by another million dollars.
This latter increase of stock was
used for the purchase Of the Johnson
Baillie, J. Lands, Perry-Norvell and
Bedford Shoe Companies, for which
an aggregate of $2.O14,Oo0 in stock,
not cash, were paid.
In December. 1921, the authorized
preferred stock was increased to
$1,000 900, and an issue of two and
one half million dollars in seven and
one-half per cent notes was sold to
provide funds for an extensive ex-
pansion program. Up to December
81, 1924, the company had squeezed
out shareholders by either cancelling
or repurchasing notes to the tune of
s669,500. In October, 1928, the first
Goodyear factory was acquired and
in 1924 second factory was erected,
both operations being financed out
of earnings, in other words, out OF
the profits, and not by putting up a
single cent.
Tho Triumph Of Monopoly.
In 1921, the @. r. Kinney Co., had
102 stores; in 1924, II had 207 stores.
In 1921, profits amounted TO $5sS, 257;
in 1924, profits amounted to s1.229.-
i7l9 The merging of factories, addi-
ton Of stores and the rise of profits.
10 the history Of this company which
is typical Of what is at present TAX
ing place in the shoe industry. The
results OF the governments action in
this industry will be felt by the tan
merry workers, shoe workers, and even
by the shoe statesmen and the two
by four" shoe dealers, whether they
be jobbers or retailers. The level
ling Of the masses goes on by this