Jasper County Democrat, Volume 20, Number 27, Rensselaer, Jasper County, 30 June 1917 — WHY SHOES ARE HIGH PRICED [ARTICLE]

WHY SHOES ARE HIGH PRICED

Most everybody knows how the price of footwear has been advanced in the past year, due, so It is alleged, to the “scarcity of leather.” But there are only a few people who really know why leather Is so “scarce.” The Demo.crat is informed by "a gentleman who is both in the business of selling hides and buying finished leather that during the past year and a half millions of raw hides have been bought up by big corporations and speculators and are now' being held to advance the price of leathers; that they are now- being disposed of in small quantities to keep, the price up and that to this fact alone., for the greater part, is due the tremendous advance in the cost of leather. During the ■ timer* the immense stocks of raw hides now held were being piled up the country butcher and hide dealer could get almost any old price he wanted for hides

—at least he could get prices that were unheard of and which were: not justified at all- by legitimate supply, and demand. After the big dealers had filled their storage houses to their utmost capacity the price of raw hides began to drop, and is nbw only about two-thirds. What it was some time ago. The leather manufacturer, of course, buys his hides direct from the. large dealers and the- small dealer —the ' country butcher and hide bnyer—-is not known to the leather i manufacturer. He must sell to; the Harger hide dealer at the pri'-e fixed' ! by the latter, who in turn fixes the' price to the manufacturer. In other words, after cornering the hide market and boo-ting the price away beyond all reason- the' large dealer is able to reduce, the price be pays for hides and advance the price to the leather man-, ufacturer. -, , It is simply another case of too: much middleman’s profits rather: than any .real scarcity of product. And, as' usual, the public' is the “goat.’’ • Only federal regulation can remedy these things, it seems, art speed the day . when this class o r speculators are put out of business..