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Show f WASHINGTON STI : and SMALL iilgj business mssmmm Sweeninq Under Ruq The more that government launches new agencies, the more it appears that they are used to sweeping other problems prob-lems under the rug. An example of this was given recently when the price control agency made a ruling on shoe prices. Because the price on hides has jumped 100 per cent, it was feared that shoe prices will go up as much as five dollars dol-lars per pair. In order to avert this, the price control people decreed shoe manufacturers could raise their prices on a dollar for dollar basis to reflect the actual cost of the hides. In other words, this is a reversal re-versal of the common practice of lumping together labor, material ma-terial and overhead costs, and computing the profit on this basis. This, knocks out in part the profit system. The problem goes even deeper. deep-er. Hide prices have risen so greatly because foreign shoe manufacturers find the American Ameri-can market so profitable that they can outbid American manufacturers man-ufacturers for American produced pro-duced hides, and still undercut the American market. But nobody wants to upset foreign relations, and of course, the consumer must be kept happy. For a long time, the independent business people of the nation, voting through the National Federation of Independent In-dependent Business, have supported sup-ported legislation that would tie the import duties to the differentials in labor costs between be-tween American wage scales and those existing in the coun. National Federation of Indepf try of origin. But the unusual tactic that the- price control people has taken to escape cries of outrage out-rage from abroad and from the domestic consumer will probably prob-ably harm consumers. No manuufacturer can operate oper-ate without profit, and to expect ex-pect any business to merely swap dollars is unrealistic. There are a few smaller American shoe manufacturers who still turn out a quality, handcrafted product. It is doubtful that they will cheapen their qualiiy. But the vast majority of American shoes are made by about three big combines. Many things go Into the making mak-ing of a shoe, which are lumped lump-ed under the name of "findings." "find-ings." It Is quite probable that unable to take a normal markup mark-up on hide costs, there will be a lower quality of innersole, lining, or some other part. After all, 25 cents per pair saved in this manner means $250,000 on each million pair. And the buyer is not aware of the lowered quality standards. In fact, this cheapening of the product will not probably be noticed except the shoes will wear out faster. And every mother with youngsters knows shoes wear out fast enough now. This sweeping under the rug the real basic problem may fool the public for a while, but in time there will be a barefoot awakening. ;ndent Business |