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March 6,1976To the editor:Re your editorial “Plastic Shoe Pinch” A 35 per cent tariff on shoe imports would result tn an increase of a minimum of 80 per cent for shoes at re tail within a brief period of time, by giv big domestic manufacturers a license to increase their selling price by up to 25 to 30 per cent Government protection for the domestic shoe industry at this time would be, as the spying goes “after the horse was out of the barn,” Tariff increases should have been put into effect a minimum of ten years ago. Our astute politicians were aware of the plight of the shoe industry back m the 60’s, but for one reason or another took 'marginal' action to protect it.The domestic shoe industry today is a far cry from its ability to produce our market needs as against its production capabilities of the 1960 decade, ft is a very debatable question as to whether or not it is capable of producing our requirements as the industry now exists.Without any question, labor in foreign countries has been and will be, cheaper than the G S.A. Thife, unfortunately, has always been the reason lor shoe manufacturing facilities to float i.e. the exodus of manufacturing from Massachusetts to from Maine tothe south into states such as Arkansas, from the States toiltaly, from Italy to Spain, from Spain to South America, to Taiwan, Korea, and presently to India and Africa. The 'shoe industry has always been a 'cheap' labor industry and will remain so Import tariffs cannot contain an illness the industry has always suffered from.Imports have insured domestic facilities of having to remain com petitive. The loss of many domesticiShoes in Mcineifirms cannot be attributei solely to im ports. Mis management has been another cause as has been the purchase of shoe companies by conglomerates in teresled only in their liquid assets.State laws have been weik In the area of protecting Maine workers from the total disregard of management for the 'moral ownership of the worker’ in any given plant that has taken a major por tkmof his working life. For example, one conglomerate bought the Dory Shoe Co. of Lewiston, the Medwed Shoe Co. of Skowhegan, the E.E. Taylor Co. of Augusta, and finally, the R.P. Hazzard Co. of Augusta. AIJ of these companies were sound and Well managed at the time of purchase. All of these companies are no longer in existence, and neither are 1406 jobsi cannot speak for any of the com panies, but if the rapq of the R.P, Hazzard Co. can serve as an example, I will explain it for whatever purpose it may serve.The purchase price o the R. P. Hazzard Co. was $1,500,006, with a cash payment at the time of the sale of $750,000, The balance to be paid in quarterly increments of $60,000. Within 90 days, in the capacity of President of the New R.P, Hazzard/E.E Taylor Co., ~ I saw between $500,000 am $600,000 sent to another holding company of the conglomerate. At this time, the R.P. Hazzard Co. also had a division operating as “the Emerson Shoe Co.,” and holding $685,098 in receivables with a New York factoring concern. This contract was broken and the receivables sold to another New York factoring concern, with the first $500,000 of the $685,000 frozen to be released only to the president and/or comptroller of the conglomerate. This lefc $185,0*0 to run the combined Hazzard/Taylor operation ofwhich Taylor was already bankrupt. I made a serious effort to stop the outward flow of cash, and fading, refused to be a part of it and resigned, as did the president.I fur her suggested to state officials that laws be passed freezing the assets of any company purchased by a conglomerate for a period of 18 months to two yehrs. This would have insured that any company purchased would continue to run and remain in a healthy state, insuring the workers of their jobs. I still feel this would bp a sound law.A greater cause to the demise of the industry than imports, was the federal government decision that the U.S.M.C, was operating as a monopoly and had to be bro ten up. This decision automatically caused the industry to lose the impetus pf new independent plant openings, and also the development of sophisticated machinery.Before the government Imposes additional tariffs on shoe imports, I sincerely hope that all facts will be analyzed. Ad-ditional tariffs will only help to spiral inflation. Wei also are a nation of more sophisticated education than the shoe industry demands. The total labor market is not now available to produce our needsas they exist todfy.I hat e spent my full life within this in* dustry as did my father and grandfather, and feel that I have a finger on the mlse of the industry.Robert P. Condon 126 Brunswick Ave. Gardiner
Newspaper Details
Kennebec Journal
Augusta, Maine, US
Wed, Mar 10, 1976
Page 4
Full Page
Clipped by
Mark C.
USA 23 Apr 2025
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