XXIV. MANUFACTURES

WILLIAM M. STEUART

In

General Condition During the attained at the close of the year. Year. While the annual manufac- According to the reports of the comtured output of the United States mercial agencies there were 9,944 is now greater than at any other failures in the first nine months of period in the history of the country, 1911, with liabilities aggregating the advance has not been constant. $138,865,620, as compared with 9,399 There have been periods of no pro- in the first nine months of 1910 with gress, and, in fact, of some retro- liabilities of $154,417,304. During the gression. The year 1911 has not been nine months of 1911 there were 2,544 one of pronounced activity. While failures in manufacturing industries, it is probable that the production with liabilities of $61,333,505. exceeded that of 1910, the volume the first quarter of 1911 the failures of products was much below the pro- in manufactures numbered 952 and ducing capacity of the factories. liabilities $23,539,177. There was a Signs of world unrest which were decided decrease in the number and constantly appearing caused disturb- liabilities for each succeeding quarance in international markets and ter. In the third quarter the busiretarded activity in the United ness failures numbered 751 and the States. The tendency during recent liabilities $15,772,093. (See also years to enlarge capitalization in all XIII, Economic Conditions and Conbranches of industry was retarded by duct of Business.) the attitude of the government in Magnitude of the Manufacturing regard to industrial combinations. Industry. The figures for the fedThe year opened with a pronounced eral census of manufactures, which depression in many lines of industry, covers the year 1909, were published though conditions gradually im- during the year. They show that proved as the year advanced. The the capital invested, persons emdecision of the Supreme Court in ployed, and value of products of the one of the important cases involving manufactures of the United States the anti-trust law assisted in the were much greater than at any pregeneral improvement, but a satisfac- vious period in the history of the tory condition of activity was not country.

268 manufacturing establishments, with a gross annual product of the value of $23,762,226,000.

Development and Distribution.— Since 1850 the capital invested in manufactures has increased from $533,245,000 to $18,428,270,000; the number of persons employed from 957,059 to 7,405,313; and the gross value of products from $1,019,107,000

The number of establishments includes all that were operated under the factory system at any time during the respective census years. The gross value of products, reported for these establishments includes a large amount of duplication caused by the products of some establishments being used as materials in others. This duplication is eliminated by deducting the cost of materials, the re-to $20,672,052,000. During the demainder may be accepted as the amount added to the cost of the materials by the manufacturing processes carried on during the respective years. It is a much truer indication of the economic importance of manufactures than the gross value of products.

cade ending with 1909, the actual amounts of increase were greater than for any prior 10-year period. In 1850 manufactures were largely concentrated in the New England and Middle Atlantic states, which reported about 75 per cent. of the products for the United States. In 1909

In addition to the establishments the products of these states formed covered by the census, it is estimated that there are 390,000 small establishments and shops engaged in the neighborhood and mechanical industries with annual products, including amounts received for work done, of $2,890,000,000.

47 per cent. of the total, the largest proportion, 60 per cent., being reported for the Middle Atlantic and the East-North-Central divisions. During the past decade the greatest amount of increase for the different states in the gross value of product occurred in New York, where the value increased from $1,871,831,000 to $3,369,490,000, an increase of $1,497,659,000. The largest percentages of increase are shown for the newly developed western states, rising as high as 284 per cent. in Nevada, where

NON-CONTIGUOUS TERRITORIES

Total for Non-contiguous Territory.

1,591

$62,479,000

$52,228,000

$10,021,000

$2,325,000

Wages.

$7,696,000

$3,639,000

Miscellaneous expenses.

$10,097,000

Value of products..

Value added by manufacture (prod

ucts less cost of materials)...

Combining the totals for these va- large establishments engaged in the rious industries in the continental smelting and refining of the precious United States and the non-contiguous metals have been established during territory gives an aggregate of 665,- recent years.

Capital. The capital reported for Salaries and Wages.-The official manufactures in 1909 amounted to statistics indicate that in the total $18,428,270,000, an increase of 45 per for all branches of manufactures the cent. over the $12,675,581,000 for amount paid annually in salaries and 1904. Neither of these totals include wages has increased more rapidly the value of hired property. Many than the number employed. The important factories are rented by the annual salary and wage payments in operating companies, and the inclu- manufactures amounts to $4,365,613,sion of their value would largely in- 000 for 1909, and of this amount crease the amount of capital. The $938,575,000, or 21 per cent., was salprincipal manufacturing establish- aries and $3,427,038,000, or 79 per ments are now operated under the cent., wages. Since 1904 the salaries incorporated form of ownership, and have increased by $364,136,000, or the capitalization often depends upon 63 per cent., and the wages by $816,the par or market value of the stock 593,000, or 31 per cent. The constant and bonds. Corporations are fre- change from the private to the corquently engaged in mercantile pur-porate form of ownership and the suits, transportation and other organization of large enterprises has branches of industry, as well as man- greatly increased the number of salufactures, and when one capital ac- aried employees and the amount paid count covers all enterprises it is im- annually in salaries. possible to obtain an accurate separation. Therefore, the statistics of capital are not reliable, as in some instances they do not represent the entire investment, while in others they contain values that are not employed in manufactures.

Persons Engaged. Including employers, employees, and officers of corporations, there were 7,678,578 persons engaged in the manufacturing industries of the country during 1909. Of this number, 273,265 were proprietors or members of firm

80,735 officials of corporations, 133,- canning industry; the largest num-
173 superintendents and managers, ber, 154,800, was reported for Sep-
576,359 clerks, stenographers, sales- tember, and the smallest, 19,998,
men and other salaried employees, for January. The largest exceeded
and 6,615,046 wage earners.
the smallest by 134,802, there being
Constancy of Employment.-The a variation of 87.1 per cent. in the
6,615,046 wage earners represent the number employed.
average number that would have The cottonseed-oil mills that de-
continuous employment during the pend upon the cotton crop for their
year 1909. It is computed by divid- raw material naturally show a great
ing the total of the numbers em- variation in the number employed.
ployed on a given day of each There was an average of 17,071 wage
month by 12. At times there was a earners reported for the industry in
much larger number employed. Dur- 1909. The largest number, 29,334,
ing November there were 7,006,853, were employed in November, and the
and it is probable that the height smallest, 5,174, in July, there being
of employment was reached during a variation of 24,160, or 82.4 per
this month. The minimum number, cent. in the employment.
6,210,063, was returned for January. The manufacture of ice is now an
The variation in the number em- important industry in most states
ployed was 11.4 per cent. During and gives employment on the aver-
1909 there was a constant increase age during the year to 16,114 wage
in the number employed each month earners. The largest number, 22,872,
from January to November; the only was reported for July, and the small-
exception to this gradual increase est, 9,847, for January, there being
was a slight retrogression in July. a variation of 13,025, or 56.9 per
Considering the entire country the cent., for the different seasons of the
figures indicate a satisfactory degree year.
of constancy of employment. Sta- Industries Employing Greatest
bility of employment is a feature of Number. Of the various industries
the well established factory indus- the greatest number of wage earners
tries, such as the textile mills and are employed in the manufacture of
boot and shoe factories.
lumber and timber products. This
includes the timber camps, saw and
planing mills, lath, cooperage stock,
sash, door, blind, and box factories.
These industries give employment to
695,019 wage earners during the
year. The height of employment
in 1909 was reached during Novem-
ber, when there were 739,160 wage
earners; the minimum number, 649,-
239, was reported for January.

The cotton mills gave employment on the average during the year to 378,880 wage earners; the greatest number, 383,529, was reported for December, and the smallest, 374,433, for January, there being a variation of only 2.4 per cent.

For the woolen and worsted industry there was an average of 168,722 wage earners; the largest number, 173,943, was reported for November, and the smallest, 158,318, for January, the variation being 9 per cent.

In the boot and shoe industry there was an average of 198,297 wage earners; the largest number, 207,452, were employed in December, and the smallest, 190,382, in May, the variation being 8.2 per cent.

The manufactures that show the greatest variation in the number employed are the canning and preserving of vegetables and fruits and similar industries that are seasonal in character. There was an average of 59,968 wage earners employed in the

are

Foundry and machine shops
the second most important industry
from the standpoint of employment.
There were on the average 531,011
wage earners reported for it in 1909.
The largest number, 597,234, were
reported for December, and the
smallest, 482,080, for January.

Cotton factories rank third in the
number of persons employed, the
average number of wage earners be-
ing 378,880, and, as explained, there
was great regularity in their em-
ployment.

Repair shops of the steam railroads is the fourth most important industry in this respect, the average

number of wage earners being ure that can be uniformly applied 282,174. The greatest number, 301,- in a total for all classes of products. 538, were employed in December, It is not a satisfactory unit of measand the smallest, 268,700, in May. ure, because it conveys no idea of There was a variation of 11 per cent. the quantities, and is increased or Printing and publishing is the only reduced in conformity with the other industry that gives employ- prices prevailing during the period ment to more than 250,000 wage covered. earners on the average during the year. The average number for 1909 was 258,434; the greatest number, 269,884, were employed in December, and the smallest, 251,757, in July, the variation in employment being only 6.8 per cent.

Prices were, as a rule, at a higher level during the census year 1909 and since, than for the years covered by any recent preceding census. This must be considered in accepting the aggregate value of all products as indicating the industrial activities of the country. Necessarily the aggregate value of products for a year of high prices would be greater than for the same quantity of products during a year in which low prices prevailed.

Power. The power of the steam engines, water wheels, electric motors and other primary power generating units employed in the manufactures of the United States in 1909 was 18,680,776 h. p. In 1904 it was 13,478,707, and in 1899, 10,097,893 While the great diversity of proh. p. The increase in electric power ducts makes it impossible to comhas been the striking feature of the pile statistics of quantities for all past decade. The power of the elec- branches of manufactures, the quantric motors increased from 492,936 tities are given for some of the h. p. in 1899 to 4,817,140 in 1909. The principal products in the following horsepower of the steam engines in- statement. The uniform increase in creased from 8,139,579 in 1899 to 14,- all of these staple products of manu202,137 in 1909, and of gas and other factures is a striking feature of the internal-combustion engines from industrial progress of the country.

Basic Industries.-Food products,

134,742 to 754,083. The increase in the direct application of water power beverages, condiments and eatables has not been so pronounced, the horsepower of water wheels increasing from 1,454,112 in 1899 to 1,807,144 in 1909.

The True Measure of Increase.The value is the only unit of meas

form about one-fourth of the total value of the manufactures of the United States; textiles, clothing and kindred products about one-tenth. The other products may be broadly classified as fabrications of metal