INDUSTRIAL STRUCTURE OF NEW ENGLAND UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE THE UNIVERSITY OF ILLINOIS LIBRARY 330.974 Un"3c Return this book on or before the Latest Date stamped below. University of Illinois Library MAY 1 a L161— H41 U. S. DEPARTMENT OF COMMERCE R. P. LAMONT, Secretary BUREAU OF FOREIGN AND DOMESTIC COMMERCE WILLIAM L. COOPER, Director Domestic Commerce Series — No. 28 INDUSTRIAL STRUCTURE OF NEW ENGLAND BY CHARLES E. ARTMAN Part I OF THE COMMERCIAL SURVEY OF NEW ENGLAND f*r APR i x 1930 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1930 For sale by the Superintendent of Documents, Washington, D. C. Price $1.30 HIGHLANDS AND LOWLANDS OF NEW ENGLAND W ( )/} ft ^x \ j ^ A cy K \ & SIGNIFICANT FACTORS IN Agricultural development Location of Manufactures Marketing Areas Distribution of population Transportation Routes Water power development Recreational advantages ELEVATION IN FEET | Above 3,000 | 2,000 to 3,000 1,000 to 2,000 500 to 1,000 100 to 500 I Sea level to 100 feet _^ .r> \ 24 MILES TO I INCH 25 50 IOO MILES \ NEW ENGLAND SURVEY U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division !^ Geographic Section CONTENTS Page Foreword xi I ntroduct ion 1 Parti. Natural characteristics and resources 4 Physical background 4 Boundaries and area 5 Topography , 6 Rivers and waterfalls 7 Coast line and harbors 7 Climate 8 Significance to industries _'__ 9 Annual precipitation 10 Recreational advantages 10 Agriculture 11 Specialization 12 Character of soils _' 12 Improved farm land 14 Regional production 14 Changes and trends 17 Problems of New England agriculture 19 The dairy industry 20 Milk production 20 ~~ Dairying regions 22 Marketing dairy products : 22 Poultry and livestock 24 Poultry and eggs 24 Hog and pork production 26 "*^> Sheep, lambs, and wool 26 Horses 27 Tfz? Feed consumption 27 Commercial fruits 28 Apples 28 \z> Peaches 32 Cranberries 32 Blueberries 34 Other small fruits 35 Commercial vegetables 35 Potatoes 35 Onions 38 Sweet corn and other vegetables for canning 39 Dry beans 41 Market-garden crops 41 Specialty crops 42 Maple sugar and sirup 43 Tobacco 43 Commercial fertilizers 45 Relative consumption 45 Types and sources 46 Merchandising of fertilizers 47 in 721638 IV CONTENTS Part I. — Natural characteristics and resources — Continued. Page Forest resources 48 Importance of forests 48 Present stand of timber 50 Types of timber land 51 Lumber consumption 52 Forest protection and maintenance 53 Protection from fire 53 Protection from other enemies 54 Forest planting 54 Local forestry organizations 55 Ownership of forest land 5G Public holdings 56 Forestry policies 56 Mineral resources 58 Value of mineral production 58 Production by States 59 Stone production 61 Granite 62 Marble 62 Slate . 62 Limestone and lime 63 Clay, sand, and gravel 63 Feldspar 63 Mica 64 Talc 64 Other products 65 Fisheries 66 Principal fishing areas 67 Types of fishing 68 Historical development 69 Ceneral trend and prospects 71 Fishing operations 72 Ground fish 73 Mackerel 78 Swordfish 79 Herring 80 Lobsters 81 Oysters 82 Clams 83 Miscellaneous shore fisheries 83 Summary of New England fishing activities 84 Wholesale fish trade 85 Fresh and frozen fish 86 Oysters and Lobsters 88 Canning and preserving fish 88 Fish canning 88 Sailed and smoked fish 90 [ncome of persons engaged in fish industry 91 Fishermen 91 Wholesale trade employees 91 Canning and preserving industry 92 CONTEKTS V Page Part II. Transportation, power, and fuel 93 Rail and water transportation 93 Rail gateways 93 Freight-rate structure 94 Break-up of territory 95 Rates to near-by territory 96 Percentage rate area 96 Differential rail rates L 97 Combination rates with the Great Plains 97 Transcontinental rates__ = 97 Rates to and from the South 98 Facilities for water transportation 99 Main routes and connections 100 New England power situation 101 Power requirements and equipment 102 Nature of power equipment 102 Growth in power equipment 104 Changes in sources of power 104 Electrification of industries 105 Use of purchased current 105 Ownership of central-station power plants 105 Public utility power development 106 Sources of energy 107 Sources of central-station power in different States _ 107 Interconnections of central power stations 109 Water-power development 109 Growth of water-power development 111 Extent of present development 111 Undeveloped water-power resources 112 Water power sources adjacent to New England 113 New England fuel supply 115 Coal consumption 115 Bituminous coal 118 Sources 118 Movement from northern fields 119 Areas served by different fields 121 Transportation rates 123 Marketing 124 Anthracite and other household fuels 125 Anthracite 125 Coke 126 Fuel oil 126 Gas and electricity 127 Wood 127 Importations of fuel 127 Near-by sources of fuel 127 Part III.— The people of New England 129 Number and distribution 129 Relative density , 130 Urban and rural areas 131 Movements and migrations 132 Movements within New England 133 VI CONTENTS Part III. — The people of New England — Continued. Page Foreign stock 134 Foreign born, by States 135 Concentration of foreign born 136 Changes in regions of origin 137 Distribution of foreign population 137 Age, sex, and occupations 141 Age groups 141 Sex distribution 141 Occupations 142 Trend of growth 142 Changes from 1850 to 1920 142 Contrasts within the area 145 Part TV. — Manufactures 148 Introductory . 148 Commercial significance 149 Wages and production in New England 151 Types of manufacture 152 Average size and output of establishments 155 Production per wage earner in major groups 156 Diversity of output 157 Contribution of individual industries to Nation's total 164 Changes in New England manufactures 166 Comparison with other sections 170 Pre-war and post-war periods compared 171 Changes in leading industries 171 Localization of New England manufacturing 177 Localization by States 177 Concentration in cities 192 Localization by counties 195 Metal manufactures 197 Characteristics of the industry 198 Factors influencing location 199 Raw materials 199 Seasonal variation 200 Incentive methods of wage payment 200 Trend of activity 200 Market for products 200 Principal classes 201 Machinery group 201 Electrical machinery and appliances 201 Textile machinery and equipment 206 Machine tools 211 Miscellaneous machinery \ 217 Foundry and machine-shop products 221 Experiences of manufacturers 224 Independent foundries 226 New England market for iron and steed 228 Hardware group 240 Hardware 240 Cutlery and edge tools 245 Mechanics' tools 248 CONTENTS VII Part IV. — Manufactures — Continued. Metal manufactures — Continued. Page Brass, bronze, and other nonferrous metals 252 Importance in New England 253 Conditions as shown by reporting companies 255 Jewelry, silver, and plated ware 257 Jewelry 257 Silver and plated ware 264 Other metal-using industries 266 Motor equipment 266 Railroad equipment and repair shops 267 Ship and boat building 268 Clocks, watches, cases, and parts 268 Needles, pins, and similar articles 269 Firearms 269 Miscellaneous metal manufactures 270 Textiles 279 Place in New England industrial life 279 Cotton manufactures 281 Importance in New England 281 Localization 281 Nature of processes 285 Development in New England 287 Cotton consumption and spindle activity 293 Cotton woven goods. 295 Use of rayon in New England textile manufac- tures 299 Marketing agencies for cotton manufactures 301 New factors in present situation 306 Cross-section of New England cotton industry __ 308 Dyeing and finishing textiles 319 Cotton manufactures other than woven goods. __ 323 Wool manufactures 333 Relative importance of industry 333 Materials used _ 335 Boston wool market 336 Principal products 338 Woolens and worsteds 339 Experiences of manufacturers 347 Reworked wool 357 Wool scouring 359 Wool carpets and rugs 360 Wool and hair felt goods 362 Silk manufactures 364 Materials used 365 Trend of growth 365 Experiences of ma nuf acturers 367 Knit goods 376 Importance in individual States 376 Principal materials Used 377 Nature of products » 378 Trend of manufacture .•...»-...•. *~«.....».. 379 Present condition of the industry *_..»*« ~^**_ 381 Experiences of knit-goods manufacturers, »*---« 382 VIII CONTENTS Part IV. — Manufactures — Continued. Textiles — Continued. Page Wearing apparel 391 Importance of individual items 391 Localization of industry 393 Experiences of members of the industry 396 Leather and leather goods 406 Localization of production 406 Lines of manufacture 407 Primary manufacture of leather 409 Localization of industry 411 Conditions in recent years 411 General view of leather industry 412 Boot and shoe industries L 417 Trend of boot and shoe manufacture in New England 419 Localization of the industry 42 1 General view of the industry 423 Boot and shoe accessories 435 Cut stock 436 Boot and shoe findings 436 Dependence upon shoe manufacturing 437 Conditions in the industry 438 Miscellaneous leather manufactures 441 Rubber manufactures 443 Types of products 443 Trends in New England 445 Manufacturing conditions 446 Paper and paper products 447 Producing regions . 447 Types of manufacture 449 Primary paper manufacture 450 Pulpwood and wood pulp 453 Secondary paper industries 455 General view of paper industry 458 Groups reporting 458 Age of industries 459 Size of establishments 459 Conditions of production 460 Labor and employment 461 Improvements in production 462 Sales and marketing 463 I >< >cation of markets 464 Channels of distribution 466 Sales organization of paper mills 466 Methods of distribution 467 Changes in paper market 468 Printing and publishing 470 Main branches of industry 470 Newspapers and periodicals 471 Income lo Slates 472 Nature of publications 473 Book and general job printing 473 CONTENTS IX Part IV. — Manufactures — Continued. Printing and publishing — Continued. Page General view of the industry 475 Age and size of establishments 475 Materials purchased 477 Employment conditions 477 Trend of sales . 477 Location of markets 477 Marketing methods 478 Improvements in manufacturing processes 478 Industries accessory to printing 479 Importance of accessory lines 480 Wood manufactures 481 Importance of various branches 482 Wood industries of individual States 485 Leading wood products 485 Lumber and timber production 485 The lumber market of New England 488 Millwork and planing-mill products 497 Wooden packing boxes 499 Furniture 504 Wood turning and woodenware 509 Stone and other mineral manufactures 515 Principal products 515 Granite, marble, and other stone 516 Granite 519 Marble 522 Slate 523 Limestone and lime 523 Clay and concrete products 524 New England market for brick and sewer pipe 525 Building brick 525 Sewer pipe 526 New England market for Portland cement 527 Seasonality of shipments 528 Domestic sources 529 Foreign sources 530 Methods of merchandising cement 53 1 Food manufactures and tobacco 532 Bakery products 534 The confectionery industry 535 Localization 535 Conditions in the industry 536 Dairy products 540 Milk, butter, and cheese " 540 Ice cream 541 Slaughtering and meat packing 541 Canning and preserving 542 Vegetables 545 Blueberries „ 546 Fish canning and curing 546 Miscellaneous food preparations 547 Flour, feed, and other mill products 548 Manufacture of beverages 549 X CONTENTS Part IV. — Manufactures — Continued. Food manufactures and tobacco — Continued. Page Tobacco manufacture 549 Chemicals and drugs 551 Gas manufacture 553 Soap manufacture 554 Medicinal and toilet preparations 555 Manufacture in individual States 555 — Raw materials 557 Sales trends and distribution 557 Industrial chemicals 557 Cleansing and polishing preparations 558 Haw materials 558 Sales trends and distribution 558 Paint and varnish 559 Petroleum refining 560 Other chemical industries 560 Ammunition and explosives 560 Glue, gelatin, and mucilage 560 Grease and tallow 561 Fertilizers 561 Tanning materials and dyestuffs 561 Animal and vegetable oils 562 Ink 562 Miscellaneous manufactures 563 Musical instruments 563 Sporting and athletic goods 565 Toys and games 566 Emery wheels and other abrasives 567 Optical goods 567 Professional and scientific instruments 568 Brushes . 568 Fancy and novelty articles 569 House-furnishing goods 570 Roofing materials 571 Buttons 571 Combs and hairpins 571 Glass processing 572 Summary of unclassified manufactures 573 Part V. Building and construction 575 Buildings and public works 575 Classes of construction 581 Commercial buildings 581 Residential building 581 Industrial building 581 Public works and utilities 581 Other types of construction 582 Changes in cost of construction 582 Highway and street construction 583 High ways 583 Market for road-building materials 588 Si reel construction 588 FOREWORD Rapid changes taking place in American commerce and industry make it especially timely to marshal and analyze pertinent facts bearing upon the economic life of the Nation. To this end commer- cial and industrial surveys of different sections of the United States have been undertaken by the Department of Commerce with a view to reducing waste in industry and in the distribution of goods. New England is the second region to be surveyed under this program, the first survey having dealt with the Southeastern States. The three volumes devoted to this New England study give a complete economic analysis of the region, dealing with the various phases of its indus- tries, commerce, and marketing. This volume presents the productive activities and resources of New England. The greater portion is devoted to a detailed analysis of its manufactures; but agriculture, forestry, fisheries, transporta- tion, power, fuel, population, and building and construction are each given full consideration. The report shows the general condition of New England's industrial life, its trend in recent years, and its place in national affairs. Much of the information presented here was obtained prior to 1927, at a time when some phases of New England industries were at low ebb. It should be borne in mind that this region has made substantial advances since that time in adjusting itself to national and world changes, and it has recovered in large measure from the depression that followed the sharp readjustment in some of its basic industries. The favorable factors are dominant. New England industries as a whole are on a sound basis, and the outlook for the future is generally one of confidence. It is manifestly impossible to deal here with every phase of New England industrial life. If time and space permitted, it would be highly desirable to show the important part played by New England investments, both within and without these States, and to discuss the insurance activities which bring a large revenue to the region. Early investments now widely distributed throughout the Nation provide a substantial income to the people of New England. A great industrial asset exists in its supply of skilled workmen and factory operatives. With long experience in business management and in labor organiza- tion, New England appears to be increasing harmonious relationships between labor and management. Its highly developed civic, educa- MI FOREWORD tional, and social institutions, and the family ties strengthened by several generations of life in this section are also powerful influences that react favorably upon the whole population. The discussion of productive activities and resources in this volume is supplemented by an analysis of New England as a consuming market in Volume II, Commercial Structure of New England, and in Volume III, Market Data Handbook of New England, with maps and statistics of the various marketing areas of the region. These three volumes give New T England, for the first time, a common body of authentic facts about its agricultural, industrial, and commercial development, and provide probably the most comprehensive study of the economic structure of New England yet undertaken. The New England Council was largely instrumental in under- taking this survey and made a substantial appropriation of funds to assist the Department of Commerce in obtaining the facts regard- ing New T England industry. The survey was carried out with the cooperation of many manufacturers, business men, public officials, local chambers of commerce, trade associations, and other agencies, whose helpful assistance is acknowledged. The present volume is the specific work of Dr. Charles E. Artman, who has had general charge of the entire New England Survey. A->istance and criticism were given by various Government agencies. Credit for major contributions is given to individuals in the sections concerned. William L. Cooper, Director. Bureau of Foreign and Domestic Commerce. November, 1921). INDUSTRIAL STRUCTURE OF NEW ENGLAND INTRODUCTION Generalizations regarding New England industry can be fairly made only with full command of the facts underlying its economic* structure. In this work emphasis is placed upon the presentation of facts in organized form, from which the reader may make his own interpretations and draw his own conclusions. In this volume New England is considered primarily as a produc- ing region. All available sources have been canvassed for facts regarding the resources and productive activities of the region. The important elements that form a background for New England's commercial and industrial development are its natural characteristics, including its location; its physical structure and climate; its native resources in soil, forests, minerals, and fisheries; and the number, types, and distribution of its population. These have determined the form and growth of its industry and the extent of its commerce. The topography and climate of the region have influenced the devel- opment of a rugged, enterprising, self-reliant population, and have given impetus to specific forms of industrial development. The first portion of this volume deals with these background ele- ments, giving separate analyses of New England agriculture, forest resources, mineral assets, and fisheries. The facilities bv which New England is tied up with the rest of the United States through rail and water transportation are briefly presented. Be- cause power and fuel supply play a vital part in the industrial life of this region, these subjects are treated in separate sections. A gen- eral analysis of the population is then presented in respect to (a) dis- tribution throughout the area, (6) racial elements, (c) migrations within New England, and (d) trend of population growth. Much space is given to a detailed presentation of the various manu- facturing activities. An introductory section presents a general pic- ture of the nature, importance, diversity, and trends in New England manufacturing as a whole, and its position in the industrial life of the Nation. Analysis is then made of each important line of manu- facture. For this portion of the report an inquiry was directed to every manufacturing establishment in New England, requesting in- formation as to (a) experience in methods of manufacture, (&) plant organization, and (c) marketing organization. Upward of 5,000 New England manufacturers cooperated by sup- plying information concerning their experiences in the past few years of industrial adjustment. This information was carefully analyzed and digested. It is supplemented by an analysis of census data for the individual industries, and by other information from trade 1 Z INDUSTRIAL STRUCTURE OF NEW ENGLAND sources. Many months of effort were devoted to this work. The 1'esults presented here perhaps afford the most comprehensive survey of the industrial structure of a major area that has yet been made. The information is presented in condensed and carefully organized form to give the reader the general facts about other fields as well as the one in which he is especially interested. The purpose of this work is to build up a fairly complete picture of New England industrial life as a whole, rather than to present a detailed story of each field. New England is considered as a homogeneous economic unit be- cause of its location and its relation to the rest of the country and because of the distinctive character of its economic life. This holds true generally for the six States, with the exception of a portion of southwestern Connecticut, which is adjacent to the New York metropolitan area. This region is also a convenient unit from historical and political standpoints. The six States comprising New England have many fundamental characteristics in com- mon. As the birthplace of the factory system New England is the oldest industrial section of the United States. The indus- trial life of America is deeply rooted in New England soil. Up to the close of the Civil War this region was the Nation's main source of manufactured goods. It was the first region to reach the stage of industrial maturity where it possessed a surplus of capital avail- able for the industrial development of newer regions. These regions, in turn, have become competitors in the markets for New England's products. Because New England was the cradle of America's industrial de- velopment, most of the Nation's manufactures had their origin there and many processes and products of fundamental national importance were invented and developed in that section. It was the seat of early shipbuilding activity and the pivot of the Nation's sea commerce. For decades the textile industry was concentrated in New England mills, and its place in cotton manufacture was undisputed until re- cent years. As a producer of footwear New England has long held the place of national leadership. In the finer grades of metal manu- facture, especially of machinery, precision tools, and silver, New England industry still ranks high. Despite a national expansion that has pushed forward the industrial development of other regions relatively faster than that of New England, these States still hold a commanding position in many products of manufacture. The supremacy enjoyed by New England industries in the early years of national growth had its basis in the early application of factory methods to the production of articles for meeting the funda- mental needs of the country's population. This expressed itself in its outstanding Leadership in the manufacture of textiles and of foot- wear. Since the day when these primary needs were uppermost in the manufacturing activity of the country, fundamental changes have taken place in the markets Tor manufactured goods. New stand- aid- of Living within the reach of multitudes have changed the emphasis from provision for primary comforts to indulgence of a wide range of choices in which style, attractiveness, and personal appeal are determining factors rather than durability and basic NATTUAL CHARACTERISTICS AND RESOURCES 3 quality. The era in which people spent most of their incomes to satisfy the primary needs of life lias given way to a new era in which expenditures are largely for articles of convenience and luxury. This is exemplified in the rise of great new industries which to-day hold a dominant place in American economic life, as expressed by the automobile, motion pictures, radio, and other marvelous facilities for travel and entertainment. These have all grown up since the estab- lishment of the dominant New England industries. Revolutionary changes in distribution and marketing methods have also taken place in recent years. The results of this survey point definitely to certain significant conclusions. In the last few years New England has been passing through a period of drastic adjustment, which has been accompanied by depression in some major lines; but a great deal of adaptation to new industrial conditions has already taken place. While certain industries, particularly cotton textiles, have been far from prosper- ous, the general industrial life of the region as a whole is sound and secure. Marked improvement is evidenced in the general condition of New England industry, particularly since 1927. The advance has been pronounced in textiles and shoes. Agriculture now holds a more important place and provides a greater real income to New England than it did 50 years ago — a triumph of selection, increased efficiency, and specialization. The region still possesses substantial wealth in its forests, its stone industries, and its fisheries. Underly- ing these material resources New England has great assets in the skill and technique of its workmen; in its experience in industrial organization and management; and in its reserves of accumulated capital and equipment. Part I.— NATURAL CHARACTERISTICS AND RESOURCES PHYSICAL BACKGROUND New England forms a part of the great industrial region of the northeastern United States, whose boundaries are outlined roughly by the Potomac, Ohio, and Mississippi Rivers, with the Atlantic Ocean on the east and Canada on the north. Since the greater part of the population, wealth, industry, and commerce of the United States is concentrated in this northeastern quarter of its area, the location of New England in the extreme northeast, fronting on the Atlantic Ocean, is much nearer and more accessible to the Nation's dominant activities than appears from casual observation of its place on the map. New England is not remote from the great mass of the country's population nor from the principal industrial areas, and for its coal and raw materials draws largely upon this northeastern region, while its advantages of water transportation give it favorable access to^other sources. From the geographic center of New England to the center of the Nation's land area in central Kansas the air-line distance exceeds 1.500 miles. Between New England's center of population and that of the country as a whole in western Indiana the distance is only a little more than half as great, being 850 miles. From New Eng- land's center of manufacturing activity in eastern Massachusetts to the Nation's manufacturing center in northwestern Ohio the dis- tance is shortened to 650 miles — considerably less than half the dis- tance between their respective geographic centers. In relation to the Nation's population and industry New England thus occupies a distinctly favorable position. Within a radius of 300 miles from Boston, the metropolis of New England, are included New York, Philadelphia, and Montreal. Such a radius embraces more than one-fifth (22 per cent) of the popula- tion of the United States and a considerable portion of the popula- tion of Canada. A circle of 500 miles radius includes Buffalo, Pitts- burgh, Baltimore, Washington, and Norfolk, and embraces almost one-third (31 per cent) of the Nation's population. When the circle is extended to a radius of 850 miles, it takes in also Cleveland, Chi- cago. Milwaukee, Indianapolis, Louisville, Knoxville, and Charleston, and includes more than half the population of the United States. Within a radius of 1,100 miles from Boston dwell about two-thirds of the population of the whole country. The air-line distances and the shortest rail distances from Boston to important commercial centers of the eastern United States are as follows : Distance From Boston to Important Commercial) Centers Air-line; dl itance Rail dis- tance City Air-line distance Kail dis- tance '; '.rk Mile* 188 268 358 478 550 Miles 23. r » 326 42:-! 679 682 ( Chicago Miles 849 033 1,036 1,350 Miles 1,034 Philadelphia Atlanta 1, III Ball [more St. Lour 1,230 irv)\ New Orleans 1,007 • d x.\Tri;.\i. CHARACTERISTICS and RfcSOTJHCES 5 BOUNDARIES AND AREA Fronting to the east and south on the Atlantic Ocean and Long Island Sound, and having the Canadian Provinces of Quebec and New Brunswick for its northern and eastern boundaries, New England lias direct land connection with the rest of the United States only where its adjoins New York State on its western border. Here the waters of Lake Champlain interpose for one-third of the distance. For a portion of the distance also the Berkshire Hills of western Massachusetts interpose a physical barrier to easy communication with the West, and the broad Hudson River limits direct rail access to only a few points. Rail entry to New England by nat- ural passageways over its western boundary is restricted to three nar- row corridors. One of these is along Long Island Sound at the south- ern extremity of Connecticut; another is at the northern end of the Hudson River Valley around the upper end of the Berkshires; and the third is at the extreme northern end of Vermont across the foot of Lake Champlain. New England occupies only 2 per cent of the land surface of the United States. Its six States considered collectively would rank twentieth in size among the States of the entire country. The total area of New England is about equal to that of New York and half of Pennsylvania; it is about the same as Missouri or Washington, and is slightly larger than* Florida ; it is about one-half the size of California, and is only one-fourth as large as Texas. From the tip of northern Maine to the southernmost point of Connecticut the maximum diagonal length is about 475 miles. The extreme width east and west is about 320 miles. The State of Maine occupies about one-half the total area of New England. It is somewhat surprising to learn that the geographical center of New England is in Maine, about 40 miles northwest of Portland. From Portland to the northern tip of Maine the distance is greater than from Portland to New York City. About four-fifths of the New England population lives in its three southern States, which comprise less than one-fourth of its total area. The size of these three States can be visualized by the fact that their whole extent is included within a rectangle 200 miles east and west by 135 north and south. The high concentration of population and manufacturing in south- ern New England is indicated by the fact that its center of industrial activity is in eastern Massachusetts, near Framingham, within 20 miles of Boston, and its center of population is near Ayer, about 30 miles northwest of Boston. TOPOGRAPHY The contour map, 1 which faces page 1, indicates the great variety of surface features. The limited belts of green show the low portions along the coast and in the river valleys. The mountains and higher elevations are shown in red and brown. The other colors show intervening levels. 1 As this map is considerably enlarged from a generalized contour map made several years ago, it contains a few slight inaccuracies, which, however, do not detract from its usefulness in showing comparative elevations in New England. 61232°— .°>0— 2 6 INDUSTRIAL STRUCTURE OK \K\V KNCI ,AK I) A study of this map shows that the low-lying shore regions below an elevation of 100 feet are generally very narrow. These are Jim ited to a narrow fringe along the shores of southern Maine, eastern Massachusetts, Rhode Island, Connecticut, and the valley of the Connecticut River. Included in these low areas is the sandy pro- jection of eastern Massachusetts that forms Cape Cod, together with the adjacent islands of Nantucket and Marthas Vineyard. This nar- row strip of low coast in New England is quite in contrast to the wide coastal plain farther south, extending from New Jersey to Florida. Back of the low coastal regions the interior of New England rises to highlands ranging in elevation from 500 feet to mountainous ridges rising above 3,000 feet in some places. Approximately one-half of New England exceeds 1,000 feet in elevation. These higher areas include most of Massachusetts west of the Connecti- cut River Valley and a small portion of north-central Massachu- setts; they reach downward also into northwestern Connecticut and extend northward to include most of southern and central Vermont, as well as the western and northern portions of New Hampshire and the northwestern section of Maine. What may be termed the physical backbone of New England is the mountainous portion which stretches from the Canadian border in Maine to the White Mountains in New Hampshire and the Green Mountains in Vermont, reaching thence to the Berkshires, in Massa- chusetts and northern Connecticut. The northern and western por- tions are conspicuously rough and rocky, with outcropping ledges interspersed with numerous water courses and lakes. The southern and eastern portions form an upland generally sloping east and south from the mountain areas to the Atlantic. The ruggedness of its surface has been an important factor in the development of New T England. The topography has made possible water power, has influenced the routes of roads and railroads, and has limited the development of agriculture. The mountains and lakes have made New England known as a vacation land in summer and a place for winter sports. RIVERS AND WATERFALLS The rivers of New England, rising in the highlands of the interior, flow generally southward to the sea. Exceptions to this are the Charles River, which flows eastward into Boston Bay; the lower Merrimack, which after reaching the Massachusetts line flows east- ward; and the upper St. John River, in northern Maine, which flows northeast to the national boundary and thence eastward into New Brunswick. Because of the frequent and abrupt changes in elevation, many of the streams make sharp descents at numerous places, forming waterfalls where they pass over* rocky Ledges. These waterfalls are in many instances the result of movements of glacial ice which blocked the old channels of streams and forced them into new courses across rocky formations. Where the resulting waterfalls occurred near the coasl they became an important factor as a source of power and thus determined the early industrial growth. This is illustrated by uch early industrial centers as Biddeford, on the Saco River in NATURAL CHARACTERISTICS AND RESOURCES 7 Maine; by Lowell, Lawrence, and Haverhill, on the Merrimack; and by Pawtucket, on the Blackstone River in Rhode Island. From the standpoint of drainage and power the more important rivers of New England are the Connecticut, the Housatonic, and the Thames, which flow into Long Island Sound; the Blackstone River, flowing into Narragansett Bay; the Taunton River, in southeastern Massachusetts; and the Charles and the Merrimack, in eastern Massa- chusetts and New Hampshire. In Maine the important rivers are the Saco, the Androscoggin, the Kennebec, and the Penobscot, flowing into the Atlantic ; also the Aroostook and the St. John, in northern Maine, which flow through Canadian territory. Although the north- ern portion is much more abundantly supplied with water power, the streams of southern New England have been much more fully developed. While the navigation afforded by these rivers is of little present im- portance to the interior, it was a substantial factor in the early growth of cities near the coast, giving them access to tidewater trans- portation. In the early days of smaller boats and of greater de- pendence upon water traffic, navigation of the coastal streams ex- tended considerably farther inland. Water-borne traffic now moves on the Connecticut River as far as Hartford ; on the Thames, to Nor- wich ; on the Charles, to Cambridge ; on the Merrimack, to Haverhill ; on the Kennebec, as far as Augusta ; and on the Penobscot, to Bangor. The principal importance of these streams in water traffic is now for transporting coal and other bulky materials, such as stone, sand, gravel, and lumber. COAST LINE AND HARBORS The excellent natural harbors provided by the numerous indenta- tions of the New England coast were in the days of the sailing ves- sel the foci of its important sea commerce. These natural harbors influenced the location and development of the region's industries by favoring the accumulation, at these points, of wealth from extensive sea ventures. These harbors gave preeminence to New England on the American coast in the same way as the contact of Great Britain with the sea enabled her to build up a far-reaching maritime trade. The advantage of its maritime position goes far to explain why more than three-fourths of the present population of New England lives within 50 miles of tidewater. With a total shore line of approximately 2,000 miles, fronting upon the rich fishing banks of the North Atlantic, the situation was favor- able for fishing as well as commerce. The shores of New England provided a great stage for these enterprises. It was thus no accident that the people of this region made their first great economic suc- cesses in fishing, whaling, and ocean trade. New England's favorable position on the sea, which enabled it to build up a large sea commerce in early days, was thus a determining factor in locating its centers of industrial development, because this development had its start in the wealth and capital accumulated from sea activities. At a later period the great mill sections were deter- mined by the water power of New England rivers and streams. When water-driven machinery was supplanted by steam the position of advantage in manufacturing was again shifted to points on or 8 INDUSTRIAL STRUCTURE OF NEW ENGLAND near the coast, where coal could be transported cheaply by tidewater. Thus the topography of New England and its frontage on the sea have continuously determined and modified the location of its indus- trial activities. CLIMATE The climate of Xew England is characterized by frequent weather changes, long and cold winters, usually with considerable snowfall, comparatively short summers with occasional brief periods of high temperature, and usually very delightful fall weather. Periods of extreme heat last but a few days, and on the coast they are modified by sea breezes. The average number of days with oppressive humidity or with dense fog on the coast is small. Lacking the enervating heat and humidity of more southern regions, the year-round New England climate is stimulating to exertion, conducive to health and vitality, and favorable to indus- trial enterprise. Although winters in the northern and interior por- tions are rigorous, they are not too severe for human comfort ; in the southern portion they are moderate. The mean annual temperature in southern Xew England ranges between 47° and 49° F.; in most of the northern portions it ranges from 41° to 42° F., falling in the extreme north to 39°. The invigorating climate has played an important role in the in- dustrial development of Xew England. Its general healthfulness fosters a sturdy, rugged population, and its variability is a stimulus to human activity. Its temperateness in the summer gives ideal living conditions. The heavy snowfalls and the severe winter weather in the northern portions of Xew England are factors to be considered because of their retarding influence on traffic and communication. Y\ x inter weather, however, is not a serious hindrance to rail or highway traffic in the more densely populated sections of Xew England, and it does not hamper the activity of the ocean ports. SIGNIFICANCE TO INDUSTRIES Because this region lacks the enervating hot periods of some other sections, labor is maintained at full productivity throughout the year. Time is seldom lost on account of hot weather. The bracing air of Xew England generates ambition among the industrial population and promote- a -anguine attitude. The humidity of the coast regions is a distinct asset in certain industries, especially in the manufacture of textiles, where the moist air prevents the generation of static elec- tricity and maintains the fibers in a pliable condition for spinning and weaving. In this respect the Xew England coast has advantages similar to those of the regions of old England, where the textile industry has had its fullest development. Climate is an important factor in New England's most characteris- tic product — maple sugar and sirup. A favorable combination of climate and -oil gives preeminence to cranberry culture, to the grow- I* blueberries, and to tobacco growing in the Connecticut River Valley. In the growing of low-temperature crops also, such as potatoes in northern Xew England and turnips in eastern Massa- chusetts, climate is a determining factor, It has given Maine sweet NATURAL CHARACTERISTICS AND RESOURCES 9 corn a wide reputation for fine quality. The New England climate and the air drainage in its valleys favor the production of apples of high quality. The growing season in the southern part of New England varies from 150 to 170 days, and in the northern portion from V20 to 130 days. Along the coast the frost-free period is considerably longer than in the interior. In the northern part of Maine the growing season is shortened considerably by late spring frosts and early frosts in the fall ; the frost-free period averages about 105 days. In south- ern New 7 England the last killing frost of spring comes the latter part of April or early in May; and killing frosts in the fall occur from October 10 to October 20. In northern New England the danger from spring frosts is extended two w y eeks later, and killing frosts in the fall cOme in the latter part of September. ANNUAL PRECIPITATION New England is w r ell watered throughout the year. The annual precipitation from rain and snow in the three southern States ranges from 44 to 46 inches. It is somew T hat less than this in Vermont and New Hampshire, w 7 here it ranges from 35 to 40 inches. In Maine it ranges from 40 inches or less in the north up to 46 inches in other portions of the State. Moderate showers and occasional thunderstorms provide most of the summer precipitation. Frequency of rainfall throughout the growing season generally assures good pasturage and the maturity of crops. Hailstorms are of rare occurrence, but they occasionally cause some damage to tobacco in the Connecticut Valley. In north- ern New 7 England rainfall in the spring and fall comes mostly from storms that pass over the St. Law r renfce Valley or up the coast. These storms sometimes continue for 24 or 36 hours, with a moderate or heavy fall of rain. In southern New England precipitation is w 7 ell distributed through- out the year, but in the north there is somewhat less in winter and spring than during the rest of the year. In the interior and northern portions, w r here most of the winter precipitation is in the form of snow, the accumulation often reaches a depth of several feet. In these sections the ground is generally well covered from early November to March or early April. The annual snowfall varies from 30 to 40 inches along the southern coast region to 70 inches along the coast of Maine, and even to 100 inches in the northern portions of New Eng- land. The atmosphere naturally has a greater moisture content along the coast than in the interior of New England. The average number of days with dense fog or oppressive humidity, however, is small. Foggy weather along the Maine coast is most common in the summer months, but there are few days of dense fog lasting for more than an hour except in the extreme eastern part. At Eastport, where there is more foggy w T eather than on any other portion of the Maine coast, the average number of days of fog during the summer months is 6 days in May and September, 7 days in June, 12 days in July, and 11 days in August. 10 INDUSTRIAL STRUCTURE OF NEW ENGLAND RECREATIONAL ADVANTAGES The wonderful variety of mountain and valley, of forest, lake, and open country, of picturesque shore line and river courses in New England is enhanced by the changing seasons. The seclusion of forest, lake, and stream, the grandeur of rugged mountain peaks, and the ever-changing shore line w 7 here the breakers roll in from the At- lantic, form an endless variety which makes New England the great recreational region of the eastern United States. With the congestion of population in American cities and the extension of facilities for motor transportation to the general public, these recreational advan- tages are becoming more and more recognized as a distinct commercial asset of New 7 England. Each summer its population is swelled by increasing thousands of visitors from outside sections. In many localities the summer population is double or triple that of the win- ter season. Every year some of these visitors from other sections take up permanent summer homes in the region, and some become established in business or manufacturing, as permanent residents. The importance of these recreational advantages is indicated by the existence of nearly 500 private summer camps, which each year are filled with boys and girls from all parts of the East. There are nearly 400 golf courses in New England. Many a hunter is attracted by the presence of game in the northern forests, and the fishing in its streams and lakes lures other pleasure seekers. Carnivals of winter sports are held at a dozen places. Along the coast sum- mer communities are populated each year by visitors to Narragan- sett Bay, Buzzards Bay, Nantucket, Marthas Vineyard, Cape Cod, the North Shore, and hundreds of places along the coast of Maine. The diversity of its mountain scenery, the beauty of its lakes and valleys, the fascinating spell of the seashore, the historic associa- tions of New England villages, and landscapes enriched by three centuries of American history, are attractions of New England which draw increasing thousands of visitors to its borders each year. These, with well-kept highways, the provision of comforts for year- round outdoor life, and the charm and beauty of the countryside, have made New England widely known as a year-round playground. AGRICULTURE Note. — The material presented in the section on agriculture is based partly upon information gathered by Dr. R. J. McFall, of the Bureau of the Census, while professor of agricultural economics at the Massachusetts Agricultural College. Agriculture in New England is overshadowed by the region's manufacturing activities, yet the industries of the soil are of sub- stantial importance. Concentration of a large food-consuming pop- ulation in its industrial centers gives emphasis to the importance of food production far beyond the relative proportion of persons or acreage engaged. The further New England agriculture can go in supplying the needs of its own population, the more it reduces the necessity of spending the income of the region for food pro- duced in other sections. An important advantage enjoyed by New England agriculture is the existence of a large consuming popula- tion near at hand, which provides a ready market for its products almost at the producer's farm. In addition to its contribution to the food supplies of the region, New England agriculture provides an important consuming market for feeds and fertilizer and for farm implements and equipment. Besides this is the market afforded by the farm population for ordi- nary articles of human consumption. Maintenance of the prosperity of New England agriculture assures an important market for the varied products of the manufactured articles of this and other regions. Products of New England agriculture in 1925 exceeded in value the contribution of net revenue from any single manufacturing in- dustry of the region except cotton goods. Estimating the value of all farm production, including crops and animal products, on the basis of average yield and farm prices, the United States Department of Agriculture computed the value of the products of New England soil to be about $473,000,000 in 1925 and $476,000,000 in 1926. Animal products form a high proportion in these totals, representing more than 40 per cent of the value, while the value of all crops was less than 60 per cent. Farm property in the six New England States was reported as hav- ing in 1925 a total value of $1,091,545,000, with a farm population of 657,755, living on 159,489 farms. The value of New England farm property as reported for that year was about two-thirds that of New York State or half that of Wisconsin. The New England farm population was about 125,000 more than that of California, 110,000 less than that of New York State, and two-thirds the farm popula- tion of Iowa. The agriculture of New England is characterized by the produc- tion of articles mainly for consumption in near-by cities. It is thus governed by local market considerations and requirements rather than by the factors which determine the production in other agri.cul- 11 12 INDUSTRIAL STBTJCTURE OF NEW ENGLAND 4 tural regions of staple commodities for distant markets. A distin- guishing characteristic of New England agriculture is the diversity of its production. SPECIALIZATION Dairying is the most extensive agricultural activity throughout this region, directed to the production of fresh milk and cream for consumption in the New England market. This line of production engages more farmers than any other. .Aside from dairying, the source of greatest money income to New England farmers is the pro- duction of potatoes. This activity is concentrated largely in a single specialized region of northeastern Maine where a favorable com- bination of soil and climate makes the section one of the great potato- producing areas of the United States. Apple growing is a specialized industry of considerable commercial importance in several districts in the three northern States of New England and in Massachusetts, Maple products are also a source of substantial income on the northern farms of these States, particu- larly in Vermont. In the valley of the Connecticut River tobacco growing and the production of onions are important sources of in- come. Cranberries are an important source of revenue to the grow- ers in the Cape Cod region of southeastern Massachusetts. The high- land region of southeastern Maine, especially Washington County, derives a substantial income from the blueberries which grow abun- dantly on the rugged uncultivated land of that section. Sweet corn for canning also contributes considerable amounts to the revenue of farmers in southern Maine. Distributed about southern New England are various areas near the large cities which yield important incomes from the production of market-garden crops. Part-time farming on small tracts has had significant development in the vicinity of the large industrial centers. Poultry raising is of commercial importance in southern New England and in southeastern New Hampshire and Maine. In regions not given to crop specialization there is some general farming in which hay is an important crop. In northern New England many a farmer combines agriculture and dairying with forestry, supplementing the income from his dairy herd with sales from the farm woodlot, augmented often by maple products. Grain is grown to a limited extent throughout New England for farm consumption. CHARACTER OF SOILS In consequence of the glacial origin and of the rough and broken surface of New England, there is great diversity in types of soil, as well as in the elevation of farm lands. With the exception of a few specialized regions, such as the Aroostook Valley in northeastern Maine and the valley of the Connecticut Kiver in Massachusetts and Connecticut, very little uniformity of soil types exists anywhere in the six States. Along the low coast line stretches a narrow belt of sand, which in Massachusetts reaches out into the sea to form Cape Cod and the near-hy inlands of Nantucket and Marthas Vineyard* These are the only' vestiges of a coastal plain in Mew England. AGRIOULTUBB 13 Practically all the tillable soils are of ample depth, are usually well drained, and are not subject to washing. In the heavier types of soil sufficient moisture is retained for growing crops, even during rather long dry periods. New England soils may be classified according to type, contour, and elevation in four distinct groups. These are, first, the moun- tainous and hilly regions of the higher elevations; second, the up- land valleys interspersed among the hill regions; third, the more level land of the lower elevations; and, finally, the lowland valleys and coast region. The general localities where these various types prevail may be observed by reference to the colored topographical map facing page 1. Among the mountainous and hilly regions there is generally a thin soil and such a prevalence of rock that tillage is not profitable under modern conditions. In early days much of this land, after clearing from the primitive forest, was given over to cropping in small, irregular fields, which yielded fairly good crops until the virgin fertility of the soil was exhausted. The difficulty of working this type of soil in competition with the richer land of the western farms is the principal reason for the abandonment of agriculture on much of this broken land, and for its consequent reversion to forest. Most of it is better adapted to timber growing than to farming, but portions of it are profitably utilized for farm pasturage as a support to the dairy industry. On the floors of the numerous upland valleys lying among the hilly regions there is generally a rather light and fine type of soil which is easily worked and which warms up quickly in the spring. These upland valleys range from small, narrow hollows among the hills and along stream beds to quite extensive tracts of fairly level land. Apple orchards thrive in these upland valleys where the air drain- age is good, and early specialty crops also grow well there. Near the large cities some of these valley soils are profitably utilized in the growing of market-garden crops. The soils of the low r er elevations are in areas of smoother contour, and are better suited to agriculture. Under proper care they provide excellent pasturage. They are mostly loams, varying from a gravelly or sandy texture to fine silt. In some sections they are favorably affected by the presence of chemicals in the bedrock, such as phos- phate material in Aroostook County of Maine, and lime in Vermont, western Massachusetts, and Connecticut. Some of these soils are admirably adapted to the growth of the heavier vegetables, such as potatoes, and of hay, grain, and forage crops. In all but the north- ern portion of New England corn matures well on these soils of the lower elevations. The coastal region of southeastern Massachusetts and areas back of it are dotted with marshes and beds of peat rich in accumulated vegetable matter, which are especially suited to cranberry growing. The moist atmosphere and even, cool temperature of the growing season in this district have combined to make it the principal cranberry producing area of the United States. The sandy soil at the base of Cape Cod is also peculiarly adapted to the growth of such crops as strawberries and asparagus. 14 INDUSTRIAL STRUCTURE OF NEW ENGLAND IMPROVED FARM LAND Less than a quarter of the total land surface of New England is now in farms, and only a little over one-third of this portion is classi- fied as improved land used for producing crops and as plowable pasture. The improved crop and plowland is only 13.6 per cent of the total land area of New England, in comparison with 36.6 per cent for New York State, with 50.3 per cent for the East North Central States, and with 26.5 per cent for the United States as a whole. In 1925 there were 15,858,000 acres in the farms of New England, out of its total land surface of some 68,000,000 acres. The improved farm land, embracing the portion that is cropped or in plowable pas- ture, comprised only 5,395,140 acres. The land now suitable for tillage in New England is but slightly more than 1 per cent of the tillable land area of the entire United States, and it is but 5 per cent of the tillable land in the 14 States east and north of the Missis- sippi and Ohio Rivers. It is less than half the acreage of improved land in the neighboring State of New York. The relative importance of agriculture in the individual States of New England, as indicated by the proportion of workable farm land in the total area of the State, is shown by the following percentages: Vermont, 24; Connecticut, 20.7; Rhode Island, 16.1; Massachusetts, 15.1; New Hampshire, 10.9; and Maine, 9.7. The proportion of improved farm land in each county of these States is shown graphically in Figure 1. REGIONAL PRODUCTION The Census of Agriculture for 1925 gives for each county the yield and the value of the principal crops of the previous years, and of the principal livestock products. The crops include corn harvested or cut for silage, wheat, oats threshed, barley, buckwheat, dry beans, hay, tobacco, potatoes, strawberries, sweet corn, and apples. The livestock products include, as dairy products, the milk produced, butter made on farms, butterfat sold, and the value of whole milk sold in 1924; they include also the value of wool and of eggs pro- duced and of chickens raised in 1924. These agricultural products had an aggregate value in the six New England States in 1924 somewhat in excess of $246,000,000. In each of the States of Maine, Vermont, Massachusetts, and Connecti- cut the total value exceeded $50,000,000. In New Hampshire it was somewhat less than half this figure, while in Rhode Island it was nearly $7.700/K)0. The relative production of the individual counties in New England, as shown by the value of these products in 1925, is indicated in Figure 2. It is recognized that these figures take only partial account of the specialized products which are of importance in certain sections of New England. Neither do they take account of the production on small tracts, not designated ;is farms, adjacent to villages and cities. In these hitter- places the production of vegetables, fruits, poultry, and dairy products, largely for home consumption, reaches a very considerable ralue. [f tne total figures for all products of agricul- ture and of livestock and poultry were obtainable by counties, the AGRICULTURE 15 Figure 1 16 INDUSTRIAL STRUCT U I IK 0¥ NEW ENGLAND VALUE OF PRINCIPAL CROPS AND LIVE STOCK PRODUCTS IN NEW ENGLAND COUNTIES 1925 EACH DOT= 4500,000 STA71E TOTALS MAINE $54,372,000 NEWHAMPSHIRE VERMONT MASSACHUSETTS CONNECTICUT RHODE ISLAND 24,569,000 50,789,000 57,158,000 51,51 1,000 7.693.0 00 NEW ENGLAND $246,092,000 NEW EN GLAND SURVEY U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce- Domestic Commerce Division (3Z65-+6) Figure 2 AGRICULTURE 17 total values would be increased considerably. The map (fig. 2) shows in a general way, however, the relative agricultural productive- ness of the individual counties of New England. CHANGES AND TRENDS The period of maximum farm activity in New England, as indi- cated by the acreage, was about 1880. The census for that year gives the total land in farms as nearly 21,500,000 acres. The total re- ported for 1925 was 15,858,000 acres. The improved land in farms reported in 1880 was 13,148,000 acres, and by 1925 it had fallen to considerably less than half this amount — 5,395,000 acres. In the same period the improved farm acreage in the United States nearly doubled. Changes in the individual States of New England in this 45-year interval, both in total land in farms and in improved land capable of cultivation, are shown in the following table. Changes in New England Farm Acreage, 1880-1925 State Total land in farms Improved land in farms (crop and plowable pasture) • 1880 1925 1880 1925 Maine _. ___ __. Acres 6, 552, 578 4, 882, 588 3, 359, 079 2, 453, 541 3, 721, 173 514, 813 Acres 5, 161, 428 3, 925, 683 2, 367, 629 1,832,110 2, 262, 064 309, 013 Acres 3, 484, 908 3, 286, 461 2,128,311 1, 642, 188 2,308,112 298, 486 Acres 1, 839, 283 Vermont.-. _ _ ___ _ 1, 401, 876 Massachusetts _ . 772, 519 Connecticut ___ . _ . 639, 341 New Hampshire . _ _ 632, 519 Rhode Island _ - - 109, 602 TotaL- -. 21, 483, 772 536, 081, 835 15, 857, 927 924, 319, 352 13,148,466 284, 771, 042 5, 395, 140 United States . ___________ 505, 027, 400 Changes accompanying the reduction in farm acreage, as regards the number of persons engaged in agriculture and the number of farms, together with total acreage and improved farm acreage, are indicated for the census intervals since 1850 for New England as a whole by the figures of the next table. This is followed by tables showing the increase in value of farm property and the decrease in farm animals and in production of grains in New England. Changes in Basic Factors in New England Farming Activity, 1850-1925 Year Persons engaged in agriculture Number of farms Total land in farms Improved land in farms 1925 i 657, 755 221, 162 280, 760 287, 469 304, 448 301,815 314, 810 297, 294 ( 8 ) 159, 489 158,564 188, 802 191, 888 189, 961 207, 232 180, 649 183, 942 167, 651 Acres 15, 857, 927 16, 990, 642 19, 714, 931 20, 548, 999 19, 755, 584 21, 483, 772 19, 569, 863 20,110,922 18, 367, 458 Acres 2 5, 395, 140 1920 6,114,601 1910 •__ 7, 254, 904 1900 8, 134, 403 1890 10, 738, 930 1880 13, 148, 466 1870 11,997,540 1860 . 12, 215, 771 1850 11,150,594 1 Total farm population. 2 Crop land and plowable pasture. 3 No data. 18 INDtfSfRiAL STRUCTURE OF NEW ENGLAND Increase in Value of Farm Property in New England, 1850 11)20 Year 1920 1910 1900 1890 1880. 1870. 1860 1850 All farm property $1, 173, 019, 594 867, 248, 457 639, 645, 900 585,267,817 671,846,058 566, 353, 952 560, 467, 417 435,154,325 Average farm in- vestment $7, 481 4, 593 3, 333 3,081 3,242 3, 135 3,047 2, 596 Value of farm lands and buildings $917, 225, 584 718, 544, 808 528, 267, 748 489, 570, 178 580, 681, 418 468, 133, 979 476, 303, 837 372, 348, 543 Decrease in Animals on New England Farms, 1850-1925 Year Cattle 1 year and over Sheep 1 year and over Swine Mature horses Oxen Total work animals 1925 1920- 987, 400 1, 222, 963 1, 168, 528 1, 316, 544 1, 411, 852 1, 503, 452 1, 358, 137 1, 572, 776 1, 469, 028 122, 257 191, 691 306, 443 563, 217 936, 532 1, 362, 234 1, 450, 155 1, 779, 670 2, 257, 583 194, 040 383, 752 396, 642 362, 199 407, 590 362, 133 241, 000 326, 176 361, 481 255, 234 292, 236 343, 826 365, 045 368, 849 324, 066 259, 368 258, 992 212, 274 0) 0) 0) 2 65, 485 111,461 137, 581 198, 742 267, 960 293, 285 255, 234 292, 236 19142 10G, 388 14, 937 10,464 26, 262 30, 408 Rhode Island 16, 521 76. 398 4, 875 21 271 New 1 1 a mpsb ire Connecticut Vermont Massachusetts Total 468, 103 108,217 In former years most of the milk produced in New England, par- ticularly that in the northern States, was made into butter and cheese, at first on the farms and later in central creameries. With the extension of the city demand for fluid milk, sweet cream, and ice cream, a rapidly increasing proportion has been marketed in the fresh state. The year-round production for manufacture is now limited chiefly to sections with the poorest transportation facilities for mar- keting fluid milk. In other sections there is some manufacture of the surplus during seasons of greatest production ; but the growing de- mand for sweet cream absorbs an increasing portion of the supply which is not marketed as fluid milk. Very little butter is now made on farms. Of the total milk production it is estimated that less than 20 per cent goes into the manufacture of butter, and only slight volumes are used for condensed milk and for cheese-making, probably not more than 2 per cent together. The volume of locally produced milk consumed in the manufacture of ice cream is unknown, because large quantities of cream, sweet butter, and condensed and evapo- rated milk are shipped in for this purpose from outside sources. The major portion of the New England production is sold as fluid milk and is consumed in its fresh state. The changes that have taken place in the production of milk in the individual States from 1889 to 1924, according to available census data, are shown in the following figures. This table shows that milk production has advanced in the midst of the industrial sections of southern New England just as truly as in the rural regions of the north. Milk Production in the New England States, 1889-1924 [In thousands of gallons] State 1889 1899 1909 1919 1924 Vermont _. 90, 712 82, 572 57, 970 54, 414 42, 633 10, 611 142, 042 105, 572 99, 586 68, 952 60, 724 12, 924 122, 919 90, 438 69, 785 59, 829 44, 461 12, 178 122, 096 76, 317 77, 677 54, 894 42, 556 12, 099 127, 957 Massachusetts 86, 575 Maine 71, 131 Connecticut 65, 699 New Hampshire 38, 206 Rhode Island 13, 504 Total 338, 912 489, 800 399, 610 385, 639 403, 072 tfl232°— 30> 22 INDUSTRIAL STRUCTURE OF NP^W ENGLAND DAIRYING REGIONS Considerable concentration of the dairy industry exists in north- western Vermont and in the upper Connecticut River Valley. Aside from these sections, dairying has had its greatest development in the three southern States of New England. The industry is relatively unimportant in northern Maine and New Hampshire, in the Cape Cod district of Massachusetts, and in southern Rhode Island. In the north the regional variations are largely the result of natural conditions, while in southern New England the development of dairying has been influenced largely by the proximity of good markets in the industrial sections. Northwestern Vermont, with unusually good pasturage, has condi- tions of rainfall and soil that are more favorable to the production of feed for animals than those prevailing in the region east of the White Mountains. Dairying in southern New England is favored by the greater density of farm population, as well as by the proximity of good markets. The greatest development has been in the most densely populated farming sections, which as a rule are near the industrial centers. The dairy farms in this region were started generations ago, and good marketing conditions have favored their growth. Consequently milk production per acre and per farm is greater in Massachusetts and Connecticut than in northern New England. Almost all the counties of the northern States produce more milk than can be consumed locally. Their surplus is shipped to Massa- chusetts, Rhode Island, and New York. Although Massachusetts is the second largest producing State in New England, its product does not meet its own requirements for fluid milk and cream, and it draws large supplies from the northern States, as well as from New York State, in addition to cream, at certain seasons, from States west of New York and from Canada. A small volume of milk also comes from Canada. Connecticut produces more fluid milk and cream throughout the year than the State requires. It makes considerable shipments to New York, Springfield, Boston, and Providence. The smaller cities of Massachusetts, and Providence, in Rhode Island, draw upon near-by farms in Massachusetts and Connecticut, as well as upon Vermont and Maine, to supplement local production. Each consuming community generally gets its supplies of fluid milk from the nearest available source. The small centers depend mainly upon local supplies, while the larger cities draw a consider- able proportion of their requirements from distant regions. For the metropolitan area of Boston milk comes mainly from northern New England. The smaller cities of Massachusetts, and Providence, in Rhode Island, obtain most of their supplies from local producers, but a portion comes from the north. The Springfield district in western Massachusetts draws its supplies from the Connecticut River Valley, reaching as far north as Brattleboro, in Vermont. MARKETING DAIRY PRODUCTS Although New England asa whole produces enough fluid milk and cream to meet its own requirements, in addition to supplies for ice AGRICULTURE 23 cream, there is a considerable movement of fluid milk, as well as of cream, both into and out of the region. In seasons of surplus there is a regular interchange of milk and cream with outside sections. The result is a net inward movement annually of some 2,000,000 gal- lons of milk and 1,000,000 gallons of cream, which balances that portion of local production which is manufactured into butter. Western Connecticut and southwestern Massachusetts ship milk regularly to New York City, and some communities in western Ver- mont also ship a portion there. Offsetting this movement, some of the border regions of New York State ship milk to Boston and to Springfield, and to some extent into western Connecticut. From the Province of Quebec, just north of Vermont, there has also been some seasonal movement, mainly of cream into Massachusetts. All the milk and cream shipped into New England is consumed in its fluid form, except small surpluses which are carried for safety margins and small supplies used for ice cream, confectionery, and baking. It is estimated that a total amounting to somewhat over 25,000,000 gallons of local milk is converted annually into cream or butter. Most of the milk from northern New England is collected at country shipping stations or creameries, where it is weighed, tested, and cooled, and then shipped, mainly in special refrigerated milk cars. Most of the cream is shipped in the same manner. The milk from individual farms is transported to central stations by trucks running on regular routes along the main road, or by the producers" oAvn conveyances. The large Boston milk dealers have their own country stations in the north, where they buy the total product of the producer, regardless of seasonal variations in quantity. A con- siderable number of local cooperative creameries in Vermont and a few private concerns sell a portion of their product to regular or to occasional buyers. These form a reserve source of supply in periods of shortage from the regular channels. Some of the chain-store organizations obtain their supplies from these sources. New England farmers have for many years had their cooperative agencies to assist in the marketing of milk. Most of these are repre- sented in the New England Milk Producers' Association. This association negotiates the price of milk with the large city dealers in Boston and in some of the smaller cities. The price established by this association, although influenced largely at times by operations of the smaller cooperative creameries, is the basic price to producers for most of New England outside Connecticut. Cooperative creameries have existed in northern New England for many years. Within the last decade or so numerous organizations have been formed, particularly in Vermont, which are equipped to sell their product either as butter or cream. The majority of these are active in the fluid-milk market, and some of them have regularly established sales connections in southern New England cities. The industrial portion of Connecticut is served by the Connecticut Milk Producers' Association. Very little milk enters Connecticut from other States, The market is in the hands of this association, which acts as a broker in the sale of milk for its members. Uni- formity of production is maintained throughout the year by imposi- tion of price penalties for excess or for shortage, It has done much to 24 INDUSTRIAL STRUCTURE OF NEW ENGLAND remove one of the great difficulties in the marketing of New England dairy products — that arising from seasonal irregularity of production. The surplus production in the peak of the season" is a disturbing element in most of the markets outside Connecticut. It is most pro- nounced on the farms of northern New England, particularly in the good pasture region near Lake Champlain, where the volume pro- duced in early summer is several times the winter production. In certain sections, however, this situation has been overcome by plac- ing emphasis upon winter dairying. Southern New England, par- ticularly Connecticut, produces a more even supply than the northern section. POULTRY AND LIVESTOCK The total value of all livestock products in New England in 1925 was estimated by the Department of Agriculture at $203,000,000. In- asmuch as this estimate does not include production which enters directly into home consumption and is not marketed commercially, it is believed that figures for the total value, if complete, would be considerably more than this. The following statement gives the estimated valuation for 1925 of the different kinds of livestock and poultry, exclusive of dairy animals. Poultry products : Eggs $31, 500, 000 Chickens and fowls 20,000,000 Ducks, turkeys, and geese 10,000,000 Calves, steers, and other beef cattle 11,000,000 Hogs and pork 4,156,000 Sheep, lambs, and wool 729,000 Horses 200, 000 Total 77. 585, 000 POULTRY AND EGGS The value of New England poultry products is considerably more than one-half the value of dairy products, as reported by the Bureau of the Census. Egg and poultry production is of considerable com- mercial importance in the more densely populated country districts of southern New England, and in southern New Hampshire and Maine. Although egg production is generally emphasized more than meat, broilers are raised extensively in special commercial plants and on farms, particularly in eastern Massachusetts, Rhode Island, and New Hampshire. Small flocks of hens are maintained on most farms throughout New England. Although back-yard flocks are not so common in the towns of southern New England as they were a few years ago, they still hold a considerable place in the industry. It is believed that with the inclusion of these small-town flocks the num- bers given in the agricultural census would be increased by about one-quarter. Production of eggs on New England farms in 1925 was reported as upward of 56,500,000 dozen, valued at $31,500,000. Eggs are sold hugely direct to the consumers or to local retailers. On account of the high proportion of sales direct to consumers, New England poult r\ men are able to command a premium price for eggs, and to AGRICULTURE 25 avoid the more expensive marketing processes of some other farm products. Most of the eggs produced on New England farms are consumed in the smaller urban centers and in the country, as is evidenced by the fact that the Boston market, which in 1925 handled a volume equal to the total New England egg production, obtained less than 10 per cent of its supply from New England. A portion of the Connecticut product goes to New York City. In Connecticut there are egg cooperative associations which sell at wholesale the surplus products not absorbed by their local markets. A similar association was formerly operated in New Hampshire for the special wholesale market in Boston. The following table showing egg production and number of hens on farms in the various census years from 1880 to 1925 indicates the changes in New England poultry activities. It appears that the number of hens and the egg production has about doubled during the 45-year period. Substantial falling off is noted in 1920, presumably on account of the scarcity and high cost of feed in the postwar period. Eggs Produced and Number of Hens on New England Farms, 1880-1925 Year Eggs Hens Year Eggs Hens 1925 Dozen 56, 589, 947 37, 631, 896 55, 078, 175 8, 138, 168 5, 803, 507 7, 708, 636 1900 1890 1880 Dozen 50, 686, 580 35, 538, 234 26, 802, 766 6, 606, 246 1920 6, 685, 066 1910- _ 4, 088, 743 The relative importance of the poultry industry in the different New England States, according to census data for the year 1925, is shown in the following table. Comparative Importance of Poultry Industry in New England States in 1925 State Chickens on farms Jan. 1 Eggs produced Chickens raised Number Value Dozen Value Number Value Massachusetts. . 2, 029, 819 1, 698, 900 1, 900, 008 1, 207, 034 941, 014 361, 393 $3, 611, 587 2, 565, 340 2, 470, 012 1, 689, 847 1, 185, 677 610, 755 14, 324, 666 11,774,725 13, 612, 813 8, 181, 291 6, 371, 751 2, 274, 701 $7, 592, 071 5, 887, 365 5, 717, 381 33, 599, 769 2, 548, 699 1, 205, 591 3, 731, 769 2, 670, 099 2, 837, 654 2, 441, 812 1, 339, 275 519, 211 $5, 261, 794 Connecticut... ... 3, 417, 727 Maine 2, 922, 784 New Hampshire 2, 856, 921 Vermont 1, 433, 023 Rhode Island .-. 726, 894 Duck raising has been developed on a commercial scale in eastern Massachusetts in a district south of Boston, centering in the town of Wrentham. About 400,000 ducks are said to be produced yearly. The large producers are organized in a cooperative association which markets a large portion of the production in the metropolitan market through one Boston dealer. A considerable portion is disposed of through direct sale, as duck dinners and as sandwich fillings at road- side stands near the farms. Aside from this commercial development 20 INDUSTRIAL STRUCTURE OF NEW ENGLAND in eastern Massachusetts, neither ducks nor geese are important on New England farms. The raising of turkeys, which was once an extensive activity in Vermont and Rhode Island, is still carried on to some extent in Vermont and to a limited extent in all the States. No statistics are available as to the total production. HOG AND PORK PRODUCTION The production of pork is not of great importance in New Eng- land, because of the lack of feed resources. Hogs are raised to a limited extent on dairy farms of northern New England, to utilize the surplus skim milk, and are finished 'for market with grain feeds. In southern New England hogs are raised to some extent near the large urban centers, where they are fed refuse food collected from the cities, with a small amount of grain. A considerable portion is slaughtered for home consumption on the farm, thereby reducing the dependence of the farm population upon purchased meat. The total number of hogs reported on New England farms on January 1, 1925, was 177,406, , distributed by States as follows: Maine, 54,435; New Hampshire, 15,928; Vermont, 43,864; Massachusetts, 57,821; Rhode Island, 4,175; and Connecticut, 1,183. These figures are probably considerably less than the totals for the summer crop. SHEEP, LAMBS, AND WOOL The 1925 Census of Agriculture gives a total of 178,712 sheep and lambs in the six New England States. Over one-half of these, 84,680 sheep and 17,021 lambs, were in the State of Maine; nearly one-third were in Vermont and New Hampshire, with 34,670 and 16,055 sheep, and 7,144 and 3,464 lambs, respectively; Massa- chusetts had 10,114 sheep and 2,556 lambs; Connecticut, 604 sheep and 126 lambs; and Ehode Island, 1,897 sheep and 381 lambs. Somewhat larger estimates are made by the New England Crop Reporting Service, with totals of 174,000 sheep on January 1, 1925, and 181,000 sheep a year later. It is estimated that about 14,000 mature sheep and 90,000 lambs are slaughtered annually, their value being estimated at $385,000 in the Census of Agriculture of 1925. Wool production in 1924 amounted to 857,789 pounds, having a census value of $340,167. In earlier days the sheep industry of New England was of out- standing importance. The first agricultural census, that of 1840, reported a total of 3,820,307 sheep in the six States. The raising of breeding stock was then a leading industry, particularly in Vermont, whose sheep were famous the world over as wool producers. The opening of vast grazing and pasture lands in other parts of the world within the last half century, together with the lessened local importance of wool to meet the requirements for textile manufac- ture, has depressed the sheep industry in the more populous agricul- tural regions. Most of the present sheep industry of New England centers m mum 11 flocks on the rough hill farms, in conjunction with other production, where they contribute their share of the farm money income. AGRICULTURE 27 HORSES Fifty years ago the breeding of horses was important in New England, particularly in Vermont, where the famous Morgan breed was developed. At the present time most of the horses required by the agricultural sections of New England, as well as by the cities for trucking, are purchased from outside sources. Although farm tractors are used to a limited extent in some of the more level regions, horsepower is still the main reliance in New England agriculture. In the intensive farming section of northeastern Maine, in particular, many carloads of western horses are sold in years of agricultural prosperity. FEED CONSUMPTION It has been estimated that approximately $80,000,000 is paid annu- ally for supplies of feed shipped into New England from outside sources. While hay, ensilage, and other roughage are produced lo- cally, most of the grain and other feeds consumed by cattle, poultry, hogs, and horses is the product of farms in the American and Cana- dian West. Although it is difficult to determine the exact amount of feed produced in New England or purchased outside, the follow- ing table gives fair estimates of the approximate local production and the net shipments into the region. The total includes the amounts used for human consumption, but most of the net ship- ments of grain into the region, as well as the supplies produced lo- cally, are consumed by New England livestock. These estimates are believed to be fairly accurate for the present "time. Feeds Available in New England in 1924 [Net tons] Feed Produced in New England Shipped in Total Total grain 151, 089 972, 230 1, 123, 319 Oats .- 89, 810 45, 659 3,204 12, 416 419, 658 438, 863 49,500 64,209 509,468 Corn . .- -. 484, 522 Wheat . 52, 704 Other 76, 625 Cottonseed. -- 31, 747 18,000 964, 067 31, 747 Linseed - _ - - 18,000 Other mill products _. 964, 067 These feed requirements are supplied by a well-organized system of private and cooperative merchandising agencies. Special feed stores are maintained in districts where the retailing of feed is im- portant. Many general stores in agricultural sections sell poultry and dairy feed, in addition to groceries and other family supplies. Grain and mill feeds are carried also by many special dealers who buy and sell hay. Manufacturers of feeds find outlets for their products in New England either through feed brokers or through their own sales organizations which sell directly to the retailers. Some manufac- turers deal on a wholesale basis and have also their own chains of retail stores. A number of manufacturers also operate feed mills in 28 INDUSTRIAL STRUCTURE OF NEW ENGLAND New England, either as local concerns or as branches of national houses. Cooperation in the purchase of feed by New England farmers is quite highly developed, and local purchasing associations have existed there for many years. One large-scale cooperative concern has built up within the last decade a wholesale business extending throughout New England. This organization operates its own mills and distributes its products through local associations and agents in the rural communities. It sells on advance orders for cash, with delivery from the car door on arrival, thus avoiding storage and warehousing as well as credit charges. The business of a former State cooperative association in Maine is now operated by a leading private grain dealer. In some sections of New England the Grange is an important factor in obtaining feed supplies. High standards of quality are maintained and assured throughout New England by a well-supervised inspection service of the State. COMMERCIAL FRUITS The prominent position of fruit growing in New England agri- culture is indicated by the fact that apples, cranberries, peaches, and pears produced in 1925 had an estimated total value of upward of $19,000,000. In this total apples were the major item, with $13,500,- 000; production of cranberries amounted to more than $4,000,000; peaches, to more than $1,250,000; and pears, to considerably less than $500,000. The income from these various fruits is quite widely distributed among the different States and its total in recent years has exceeded that from any other cash crop except potatoes. Orchard fruits are grown in each State, as are most of the other small fruits, although the commercial production is in some cases confined to certain spe- cialized localities. Cranberries are commercially important only in southeastern Massachusetts. Blueberries grow wild in each of the States and are harvested commercially in Maine, where the canning of this fruit is an important industry in its two southeastern counties. Plums, cherries, and grapes are grown commercially only to a limited extent, and this culture is confined to southern New England. APPLES The estimated value of the 1925 apple crop bv States was as fol- lows: Massachusetts, $4,740,000; Maine, $3,008,000; Connecticut, $2,269,000; Vermont, $1,543,000; New Hampshire, $1,476,000; Rhode Island. $508,000. Maine has been the leading apple-producing State of New England, but is being rivaled by Massachusetts because of a greater increase in the recent planting of young stock in the latter State. While in Maine there were 2,420,000 apple trees of bearing ajre in 1925, in contrast to 1,460,000 in Massachusetts, there were in Maine only 432,000 apple trees below bearing age, as compared with 700.000 i n ' Massaeh uset ts. Approximately one-half of the crop grown in these two States is classed as commercial. In the other Slates a somewhat higher proportion falls in this class. In recent years the small farm orchard has diminished in importance and ihn larger commercial plantings AGTJICtJLTTItF. 29 are becoming more prominent. In the early days of fruit growing in America a great number of varieties originated in New England, or were brought in from Europe. The older orchards of New England are principally in small farm lots, and they contain a wide range of varieties, some of which are of little commercial value. While there has been no great increase in the total apple produc- tion of this region since 1890 — in fact, there has been a decline in the total number of trees — the development of commercial orchards from new plantings is playing an increasingly important part, and the older orchards are rapidly passing out of commercial production. The following table gives the number of bearing trees and nonhealing trees, by counties, together with production and value in 1924 and 1925. Apple Trees in New England Counties in 1925, With Production and Value of Crop in 1924 and 1925 Counties Apple trees of bearing age, 1925 Apple trees not of bearing age, 1925 Production in bushels Total value 1924 1925 1924 1925 New England. . 5, 935, 000 2, 005, 000 10, 762, 000 10, 304, 000 $12, 311, 000 $13, 544, 000 Maine 2, 420, 000 432, 000 3, 241, 000 3, 305, 000 2, 787, 000 3, 008, 000 Androscoggin 258,000 71,000 125,000 222,000 62,000 286,000 83,000 75,000 305, 000 255,000 48,000 42,000 202,000 222,000 42,000 122,000 29,600 4,000 17,000 47, 500 8,200 41,500 15,700 18,000 49,000 53,400 6,000 15,200 19,200 77,000 3,100 27,600 364,000 62,000 235, 000 215,000 73,000 330, 000 134,000 112,000 474,000 283, 000 50,000 70,000 176, 000 312,000 57,000 294, 000 364,000 65,000 210, 000 235, 000 75,000 300,000 120, 000 100,000 560, 000 295, 000 45,000 65,000 190,000 325,000 58,000 298,000 313, 040 53, 320 202, 100 184, 900 62, 780 283, 800 115, 240 96, 320 407, 640 243, 380 43,000 60,200 151, 360 268, 320 49, 020 252, 840 331 240 Aroostook 59, 150 191 100 Cumberland - Franklin 213, 850 68, 250 273, 000 109, 200 91,000 509, 600 268, 450 40, 950 59 150 Hancock Kennebec Knox _ _ Lincoln _ _ Oxford Penobscot Piscataquis Sagadahoc _ _ Somerset 172, 900 295, 750 52, 780 271 180 Waldo . Washington _ York._ New Hampshire 621,000 238,000 1, 462, 000 1, 230, 000 1, 652, 000 1, 476, 000 Belknap _ 38,700 23,500 45,700 6,600 44,900 173, 100 95,000 120,200 42,100 31,200 12, 500 5,000 15,600 2,500 15, 400 86,400 28,000 52,700 10,600 9,300 78,400 39,500 93,200 7,800 53, 900 448, 500 236, 200 329, 100 123, 700 51,700 69,700 43,100 79,700 7,700 52,200 387,000 191, 700 282, 400 76,600 39,900 88, 592 44, 635 105, 316 8,814 60, 907 506, 805 266, 906 371, 883 139, 781 58, 421 83, 640 51,720 Carroll Cheshire 95, 640 9,240 Coos Grafton 62, 640 Hillsborough . 464, 400 Merrimack 230, 040 338, 880 Rockingham _____ __ Strafford 91,920 Sullivan 47, 880 Vermont. _ 565,000 180,000 895,000 935,000 1, 235, 000 1, 543, 000 Addison 65,300 30,600 15,400 46,700 5,300 29,600 19, 300 16,500 43, 900 17, 100 86,400 28,000 103, 100 57,800 23,100 7,500 7,700 9,500 900 6,700 3,700 3,700 23,700 7,800 19,200 13, 300 27,200 26,000 108, 100 51,000 21,700 101, 100 8,800 47.300 20', 800 18, 700 46,700 16,700 191, 000 24, 400 167,000 71,700 94,300 54,600 27,500 86,800 9,300 43,100 24, 400 22,100 92,800 20,000 183, 000 29,300 160, 400 87,400 149, 178 70, 380 29,946 139, 518 12,144 65, 274 28,704 25,806 64, 446 23,046 263, 580 33, 672 230, 460 98, 946 155, 595 Bennington 90, 090 Caledonia 45, 375 Chittenden _ 143, 220 Essex __ 15, 345 Franklin 71, 115 Grand Isle 40, 260 Lamoille 36, 465 Orange _ 153, 120 33,000 Rutland 301, 950 Washington 48, 345 Windham 264, 660 Windsor 144, 210 30 INDUSTRIAL STRUCTURE OF NEW ENGLAND Apple Trees in New England Counties in 1925, etc. — Continued Counties Apple trees of bearing age, 1925 Apple trees not of bearing age, 1925 Production in bushels Total value 1924 1925 1924 1925 Massachusetts 1, 460, 000 760,000 3, 360, 000 3, 160, 000 $4, 133, 000 $4, 740, 000 Barnstable 8,700 73,700 69,700 1,400 101, 300 181, 300 88,900 130, 800 376, 790 36,400 55,800 10 335,200 11,900 29, 300 32,300 500 50,500 69,100 29,300 64,200 248, 280 21,600 28,500 20 174, 500 9,800 158, 300 67,100 1,000 216, 800 495, 900 203, 300 476, 900 951, 490 45, 900 48,800 10 684, 700 7,200 176, 400 79,100 1,100 238,000 463, 800 ' 158, 100 443, 700 886, 080 47,100 64,100 20 595, 300 12,054 194, 709 82, 533 1,230 266, 664 609,957 250, 059 586, 587 1, 170, 333 56, 457 60,024 12 842, 181 10,800 264,600 Berkshire Bristol 118, 650 Dukes__ 1,650 Essex 357,000 Franklin 696,700 Hampden 237, 150 Hampshire 665,550 Middlesex 1, 329, 120 Norfolk 70, 650 Plymouth 96, 150 Suffolk 30 Worcester 892, 950 Rhode Island 166,000 57,000 324,000 299,000 447,000 508,000 Bristol 6,000 15, 300 9,800 102, 400 32,500 2,700 8,400 5,000 35, 600 5,300 7,500 31,900 13,000 242, 100 29,500 7,400 29, 700 13,600 217,000 31,300 10,350 44,022 17, 940 334, 098 40 710 12, 580 Kent 50,490 Newport 23, 120 Providence..- 368, 900 Washington.. 53, 210 Connecticut 703, 000 338, 000 1, 480, 000 1, 375, 000 2, 057, 000 2, 269, 000 Fairfield 112,400 115, 600 122, 500 43,500 121, 300 78,600 50,100 59,000 79,200 58, 400 35,900 27, 800 67,000 20, 100 23,500 26,100 230, 200 229, 200 202, 500 96, 900 307, 500 146, 000 130, 900 136, 800 214,000 202, 000 212, 000 87,000 310,000 112, 000 115,000 123, 000 319, 978 318, 588 281, 475 134, 691 427, 425 202, 940 181, 951 190, 152 353, 100 Hartford 333, 300 Litchfield 349, 800 Middlesex 143, 550 New Haven 511,500 New London 184, 800 Tolland.- 189, 750 W r indham.__ 202, 950 MAINE Production of apples in Maine is confined to the southern third of the State. High-quality fruit is produced and marketed by the better apple growers of this State, and some of it is exported to Eng- land. Its principal market, however, is Boston. Of 291 carloads of Maine apples, whose marketing during the season of 1925-26 was traced to the 10 leading city markets of the country, Boston received 181 carloads, Chicago 63, and New York City 31, while small ship- ments were made to Atlanta, Baltimore, Cincinnati, Cleveland, Minneapolis, St. Paul, and Washington. The principal apple- producing sections of Maine are in Oxford, Androscoggin, Kennebec, and Waldo Counties, but several other counties are of considerable importance. NEW HAMPSHIRE Commercial orcharding has been increasing in New Hampshire and in Vermont during the last few years. In New Hampshire the two southeastern counties of Hillsborough and Rockingham, with Merrimack County adjoining them on the north, form the principal apple-growing district, containing over 60 per cent of the trees of bearing age and 70 per cent of the young tree's. Shipments of the 1925-26 crop from New Hampshire includes 98 carloads to Boston, 39 to New York City. 8 to Cincinnati, and 1 to Philadelphia. AGRICULTURE 31 VERMONT Apple growing in Vermont is surpassed in value by the potato Cfdp and by maple products. It is important, however, in the south- ern and Western portions of the State, where the younger orchards are principally in large commercial tracts. The largest apple orchard in the eastern United States is said to be in this section. The larger orchards are in Chittenden, Addison, Rutland, and Bennington Coun- ties, along the western boundary of the State, the first two of these bordering Lake Champlain. There are numerous small orchards also in Windham and Grand Island Counties. The Vermont apple crop is marketed mainly in New York City. Of the crop for the season 1925-26, a total of 254 carloads from this State was shipped to New York, while Chicago received 5, Atlanta 1, and only 1 carload was shipped to Boston. CONNECTICUT In Connecticut the production of apples is fairly well distributed, but it is most important in the counties west of the Connecticut River. A large proportion of the commercial crop of this State is produced by a few large growers. There has been a considerable amount of recent planting throughout the State. The crop is marketed locally or is transported by trucks to the New York metropolitan area. RHODE ISLAND In Rhode Island the principal apple-growing region is in Provi- dence County, and most of the production of the State comes from a relatively small number of commercial orchards. The product is consumed in the local markets, and no carload movements from this State appear in the 1925-26 records of outside market shipments. MASSACHUSETTS Apple growing in Massachusetts is carried on extensively in the Nashoba district, west and north of Boston, which includes portions of Middlesex and Worcester Counties. There are numerous small orchards in this district, some of them on fairly level land, while others are on rolling land, where high production is obtained by the use of intensive orcharding methods. There is one orchard of con- siderable extent in this region. g a The principal production elsewhere in the State is in Franklin County, mainly from small orchards in irregular hillside pkntmgs; but there are some excellent commercial orchards south of Franklin County on the hillsides and rolling land on both sides of the Con- necticut Valley, in Hampshire and Hampden Counties Essex County, in northeastern Massachusetts, also has many apple trees, but these are principally in old, irregular orchards whose production is declining. There are scattered orchards elsewhere throughout the State, both of old trees and of newly planted stock. For the State as a whole there was an increase of 122 per cent in the young non- bearing trees from 1910 to 1920, while the number of bearing trees decreased 10 per cent in this period. From 1920 to 1925 the total number of trees increased despite the loss of some older orchards. 32 INDUSTRIAL STRUCTURE OF NEW ENGLAND The bulk of the Massachusetts apple crop is marketed within the State and very little is shipped by railway. A portion is marketed in the locality where it is grown, but the greater part is transported by truck to the larger city markets. Various methods of sale are employed, the most common one for the State as a whole being through commission dealers. About 34 per cent of the State's 1924 production was marketed in this manner, with about 12 per cent direct to the retailer, 18 per cent to country buyers, and about 11 per cent to wholesalers, while upward of 10 per cent was sold from door to door. A considerable volume is sold from the roadside stands, and only a slight proportion is sold through cooperative organiza- tions. The degree to which these various methods of marketing are employed varies considerably in different sections of the State. On account of nearness to market a considerable portion of the Massachusetts crop is sold ungraded, but the best growers pack their fruit in grades. The apples for local consumption are packed chiefly in open-top wooden boxes containing about a bushel each. The larger commercial shippers in the western part of the State generally pack their fruit in barrels. PEACHES The commercial growing of peaches is confined mainly to a small region of Connecticut, in New Haven and Middlesex Counties, where the industry was developed quite extensively by one large grower some 30 years ago. The crop from this district is marketed in the adjacent cities, and in the New York metropolitan area. Although there are small plantings of peaches in other parts of New England, they are not of great commercial importance. CRANBERRIES Cranberries are grown commercially only in eastern Massachusetts, which produces approximately 60 per cent of the total cranberry crop of the United States. The only other important cranberry- producing regions outside New England are Long Island, New Jersey, and Wisconsin. In Bristol, Plymouth, and Barnstable Counties, of southeastern Massachusetts, there are about 13,900 acres devoted to the production of this crop. The average annual yield for the four years ended in 1925 was 377,000 barrels, and the value of the crop in 1925 was $4,076,000. Production is confined to the peaty bogs in the Cape Cod district. The conditions for commercial production, in addition to a deep bed of moisture-holding peat, are a cool climate, near-by supplies of sand for surfacing, and facilities for flooding the cranberry plants during the winter. These conditions are combined in many of the low-lying sections of southeastern Massachusetts and the adjacent islands of Nantucket and Marthas Vineyard. The expansion of the acreage of cranberry production to its full cm parity has been held in check by the requirements for large outlays of capital for developing the bogs, in order to meet the cost of clear- ing off the original vegetation and debris and applying a covering layer of sand. The cost of planting and of installing the equipment AGRICULTURE 33 for flooding often makes a total expense of $7r>() or more per acre. The present tendency is toward the improvement of old bogs and the planting of new ones. NUMBER AND SIZE OF HOLDINGS Much of the production is now in the hands of large individual holders and corporations whose activities are confined to this one industry. Although there are upward of 2,100 individual holdings of cran- berry bogs, nearly one-half the total acreage, and much more than half the total production, is concentrated in the hands of a relatively small number of individuals and corporations. There are holdings as large as 250 acres, but many small growers operate either small bogs or separate sections of the larger bogs, some of the holdings being as small as one-eighth of an acre. While some of the smaller holdings have gone into disuse through neglect, because of difficulty in obtaining labor, the production has tended upward as a result of the increased producing capacity of the commercial holdings and of favorable weather conditions of recent years. Efficient marketing methods have increased the income of the growers during the past 20 years ; prices have had an irregular trend upward. MARKETING The greater portion of the crop is marketed through a single cooperative association, which has developed a high degree of effi- ciency. Some of the large-scale growers do their own marketing, and there are also local buyers who purchase the crops of the inde pendent small growers. A small proportion of the crop is canned, but the greater portion is marketed fresh during the fall and winter months. In earlier years the entire output was handled by local buyers or shipped to commission houses. Over 50 per cent of the 1925 crop was marketed cooperatively, while 42 per cent was handled by independent distributors, and 4y 2 per cent was sold for canning. In the Cranberry Growers' Cooperative Association the Massachu- setts producers are united with those in New Jersey and Wisconsin to form an exchange which acts as a national distributing agency. This agency has increased the market by stimulating the consumption of cranberries through a longer portion of the year, by extending the market to new regions and by increasing the demand through adver- tising and systematic merchandising policies. Careful grading by the association for the wholesale trade w T ith wdiich it deals, with desig- nation of different brands according to variety and quality and with facilities for personal inspection by the consumer, are also important features in the success of the association's policy. The Massachusetts cooperative distributes to almost every State in the Union, largely as a result of efforts to meet the demand in all markets as evenly as possible. PRODUCTION AND PRICES Annual production and prices from 1923 to 1927, inclusive, and car-lot shipments by the producing States from 1920 to 1926 are shown in the following tables. 34 INDUSTRIAL STRUCTURE OF NEW ENGLAND Cranberry Production and December 1 Price, by States, 1928 11^7 State Production (barrels) Price per barrel received by producers Dec. 1 1923 1924 1925 1926 1927 1923 1924 1925 1926 1927 M assachuset ts New Jersey 410, 000 205, 000 37,000 325, 000 215, 000 42, 000 429, 000 115,000 25,000 430, 000 210, 000 80,000 16,600 7,000 370, 000 75, 000 24,000 20,000 6,000 $6. 50 8.00 9.70 $9.90 8.75 9.20 $11. 25 10.75 12.32 $7.75 7.00 8.00 7.80 7.50 $12. 50 11.00 Wisconsin _._ . _ 13. 50 Washington _ . 12.00 Oregon 10.50 United States 652, 000 582, 000 569, 000 743, 600 495, 000 7.15 9.42 11.20 7.56 12.28 Car-Lot Shipments of Cranberries by State of Origin, 1920-1926 State Crop-movement season 1920 1921 1922 1923 1924 1925 1926 Massachusetts. ._ . ... 966 452 82 2 644 637 68 4 999 789 223 5 1,324 713 140 6 1,045 806 150 12 1,457 427 73 40 3,762 797 309 New Jersey Wisconsin. . Other States 34 Total 1,502 1,353 2,016 2,183 2,013 1,997 4,902 Source: U. S. Department of Agriculture Yearbook, 1927. BLUEBERRIES The commercial marketing of blueberries is an important activity in southeastern Maine, particularly in Washington County. This portion of the State has a soil and a climate particularly adapted to their growth. While no figures are available as to the total pro- duction, authorities have estimated that this crop brings close to a million dollars a year to the people of the region, where the fruit is canned commercially. In this section of Maine there were about fifteen canning establishments which put up the blueberrv crop in 1926. The method of production on a commercial scale is simple but systematic. The bushes grow in abundance on the cleared rocky soil which was formerly occupied by timber. The brush on this land is burned off about every three years, and then the blueberry bushes take possession of the soil, yielding a crop in the second and third years after the burning. It is difficult to estimate the actual acreage devoted to commercial production, because much of it has never been measured. The principal labor connected with this crop is in harvesting, which is done by hand with the aid of small rakes similar to those used in the harvesting of cranberries. Many families in the sparse population of the producing region depend upon the harvest- ing of blueberries for their year's income. Experiments in the cul- ture of unproved varieties of blueberries are now in progress on Cape Cod. The canned product from this section lias a wide market through- out the country, a large portion of it being consumed by bakeries and restaurants for making pies. Outside this principal producing area AGRICULTURE 35 blueberries are harvested to a slight extent in other regions of north- ern New England and shipped to the city markets for consumption as fresh fruit. In 1928 shipments of nine carloads of fresh blue- berries were made to the Boston market, coming mainly from a Finnish community near Fitchburg, Mass. OTHER SMALL FRUITS The growing of strawberries is of considerable importance in some sections of New England. The region of principal production is in Bristol County, Mass., but strawberries, as well as raspberries., black- berries, and currants, are grown as part of the market-gardening industry in various other regions. The production of these fruits in 1919 had an estimated value exceeding $2,000,000, of which over $1,500,000 was for strawberries. The relative importance of these cultivated small fruits in New England in that year is shown in the following table. Other Cultivated Small Fruits in New England in 1919 Small fruit Acreage Production Value Strawberries 3,353 1,679 1,000 506 504 Quarts 6, 319, 419 1, 370, 210 790, 102 146, 566 142, 175 $1, 562, 569 Raspberries . 412, 223 Blackberries and dewberries _ 176, 400 Other berries _ . ... 27, 289 Currants. 26, 351 Total .__ 7,042 8, 768, 472 2, 204, 832 The small fruits are marketed mainly in the large cities near the producing regions. Those produced in eastern Massachusetts go to the Boston and Providence markets, where they are sold both for local consumption and for reshipment by truck to neighboring cities. Many of the growers haul their own product directly to the city markets, but some of the larger growers have special salesmen or sell through commission houses. COMMERCIAL VEGETABLES The vegetables produced commercially in New England are grown principally in certain specialized areas having particularly favorable soil conditions, where attention is concentrated largely upon a single crop. These areas thus have both the advantages and the disadvan- tages resulting from dependence upon a single source of money income. POTATOES Of the vegetables that are grown commercially in New England, potatoes overshadow all the others, both in acreage and in value. This is the leading cash crop, as indicated by its total income to the region; its value in 1925 exceeded that of all the hay produced on the farms of the six States. The potato crop of this section is im- portant nationally as well as locally, for it ordinarily contributes more than one-tenth of the whole main-crop yield of the United States. Maine alone contributed more than one-tenth of the national production, both in 1925 and 1926. 36 INDUSTRIAL STRUCTURE OF NEW ENGLAND PRODUCING AREAS AND PRODUCTION While potatoes are grown in all farming districts of New England for home consumption and for local markets near the cities, their commercial production is of chief importance in northeastern Maine, principally in Aroostook County, which is the center of this indus- try. This single county in 1925 produced more potatoes than any State of New England outside of Maine, and this State produced over 80 per cent of the New England total. Vermont and Connecti- cut produced more than 2,000,000 bushels each, Massachusetts nearly 2,000,000 bushels, and New Hampshire approximately 1,600,000 bushels. Hartford County, in Connecticut, produced more than $1,000,000 worth of potatoes in that year. The production of certi- fied seed potatoes is an important branch of this industry in each of the three northern States. The importance of each State in potato production in 1924, 1925, and 1926 is shown in the following table. Potato Production in New England, 1924-1926 State Acreage Production in thousands of bushels Value in thousands of dollars 1924 1925 1926 1924 1925 1926 1924 1925 1926 Maine. . . , 140, 000 21,000 15,000 15, 000 11,000 2,000 135,000 19, 000 14,000 15, 000 11, 000 2,000 127, 000 20,000 13,000 14, 000 11,000 3,000 44, 100 3,360 2,250 1,950 1,870 280 33, 750 2,375 1,960 2,025 1,595 280 36, 830 3,100 2,015 2,170 1,815 450 18, 963 2,856 2,160 1.950 1,571 266 68, 340 5,644 5, 145 5,063 3,748 686 46, 984 Vermont 4,340 Massachusetts 3,627 Connecticut _ 3,906 New Hampshire Rhode Island .. 3,086 810 Total 204, 000 3, 348, 000 196,000 3, 092, 000 188, 000 3, 163, 000 53, 810 323, 243 41, 985 323, 465 46, 380 357, 800 27, 766 266, 047 88, 626 605, 327 64, 753 United States 499, 602 Source: New England Crop Reporting Service and U. S. Department of Agriculture. The center of New England potato growing is an elongated strip of gravelly loam with a length of about 60 miles, extending north from Houlton along the eastern edge of Aroostook County and along the St. John River to Fort Kent, and eastward from Ash- land to Fort Fairfield, and having a maximum width of 25 or 30 miles. The potato-growing region extends southward and Westward, also, into Penobscot and Somerset Counties, each of which produced more than $1,000,000 worth of potatoes in 1925. The soil of this region is stony, but its lightness makes it espe- cially adapted to potato growing. The low temperature prevail- ing throughout the growing season, and the well-distributed rainfall of northern New England provide ideal growing conditions, which are of equal importance to that of soil. Only a small portion of the total land suitable for potato growing in the Aroostook section 18 under cultivation, and not more than a third of the crop land is planted in potatoes in any one year. Production could be readily increased in this and adjoining regions when warranted by market conditions. Although potatoes have been grown in considerable quantities in northeastern Maine for the, last 60 years, the commercial importance of this crop has increased greatly within the last 30 years, largely AGRICULTURE 37 as a result of the building of the Bangor & Aroostook Railroad, which opened this country to rail transportation. This railroad now handles from 70 to 75 per cent of the annual potato shipments. The production in 1895 was something above 10,000,000 bushels, but it increased rapidly after 1901, reaching in 1914 over 40,500,000 bush- els; this has been exceeded only by the crop of 1924. Production fluctuates considerably from year to year, both on account of weather and crop conditions, and also because of variation in acreage planted. In consequence of the natural advantages of the region and tne good farming methods practiced, there has been a steady increase in yield per acre. It is now about three times that of the average for the whole country; it was estimated in 1926 at 290 bushels per acre. This is the result of intensive cropping, with a very liberal use of commercial fertilizers, and thorough spraying of the growing plants to check disease and insects. MARKETING Of the total production of Maine potatoes in 1925 and 1926, ap- proximately 75 per cent was shipped out of the producing region, about 8 per cent consumed locally, between 6 and 7 per cent re- quired for the next year's seed, and a little more than 4 per cent fed to animals or used for making starch. Between 5 and 7 per cent was allowed for shrinkage. The largest part of the crop is thus shipped commercially for table consumption. In former years a considerable portion of the crop was consumed in the manufacture of starch, and there are numerous starch factories in the potato- growing and shipping sections. Only the rejected low-grade pota- toes are now used for this purpose, excepting possibly in years of extremely low prices, when some of the better stock is so consumed. Most of the growers sell their crop at harvest time to resident local buyers, who make a specialty of marketing the crop, acting as brokers having connection with dealers in the larger points of consumption. Some of the potato buyers are also large-scale pro- ducers, growing several hundred acres individually. Some years ago a cooperative association for marketing the crop was or- ganized, in which a large proportion of the potato growers were members. This association was discontinued after a few seasons of activity, although several local associations which were part of this cooperative organization are still doing business. Since 1925 the American Fruit Growers' Exchange has handled a considerable part of the crop. One of the national chain-grocery organizations has extensive agencies for buying, storing, and shipping potatoes from Aroostook County. Potatoes are generally collected for grading at the warehouses along the railroad sidings, where they are either shipped immediately or stored in bins. Shipments are made by rail, both in bags and in bulk. Most of the crop moves to market during the cold months. Kefrigerator cars are generally used, and these are heated during cold weather. The crop of Maine potatoes is marketed in a wide territory, the extent of which depends largely upon the size of the crop and the pro- duction in other sections of the United States. The crop of 1924-25, 61232°— 30 4 38 INDUSTRIAL STRUCTURE OF NEW ENGLAND with total shipments of 43,070 carloads, found markets in every State east of the Mississippi and in five States west of it, in addition to Canada, Cuba, and the British Isles. Between September 12 and March 26 of that season, when records were collected for 30,783 cars, direct shipments, amounting to over 1,000 carloads, were made to each of five States as follows : Massachusetts, 9,605 ; New York State, 8,198 ; Pennsylvania, 2,302; Connecticut, 1,947; Rhode Island, 1,320. Four other States received shipments exceeding 500 carloads each, namely, Maine, 944; Virginia, 942; Florida, 762; Georgia, 625. Each of the following States received over 300 carloads: New Hampshire, 451; South Carolina, 435; North Carolina, 355; Maryland, 302; Texas, 302. Besides these, Ohio received 148 carloads ; Alabama, 81 ; West Virginia, 60; Tennessee, 57; District of Columbia, 52; Delaware, 27; Indiana, 24; Kentucky, 23; Illinois, 21; Missouri, 18; Mississippi, 20; Oklahoma, 17; and other destinations, 36. A considerable portion of the Maine crop is shipped for seed to other sections, notably to Long Island and to the South Atlantic and Gulf States as seed for the early crop, which, in turn, is shipped to the northern markets for consumption. The production of certified seed potatoes is important in Maine, also in northern Vermont and in New Hampshire. A total of nearly 2.500.000 bushels was produced by these three States as certified seed in 1926. of which Maine produced 2,295,000 bushels, Vermont 154,400 bushels, and New Hampshire approximately 29,000 bushels. In the preceding season Maine shipped 1,667 carloads of certified seed pota- toes to 16 States besides the District of Columbia. Each New Eng- land State and each State fronting on the Atlantic seaboard was rep- resented in these shipments of seed potatoes, as well as Indiana in the interior. Shipments from Vermont are made largely to Connecticut and New York State, Long Island being the largest purchaser. Some shipments are made to New Jersey, and a few sales are made in Virginia and Pennsylvania. The other States of New England use small portions of certified seed as foundation stock. On the other hand, the potato growers of northern New England bring in con- siderable shipments of seed potatoes from New Brunswick, as a means of maintaining the quality of their own foundation seed stock. ONIONS The commercial growing of onions, aside from the production in market-gardening operations, is confined principally to the upper part of the Connecticut River Valley within the State of Massachu- setts. Although onions were formerly grown extensively in the east- ern part of the State, notably about the town of Dan vers, in Essex County, general market gardening has taken the place of this crop in the areas adjacent to metropolitan Boston. The level lands of the valley north of the Holyoke Range now constitute the principal onion-growing district. The commercial onion crop of New England in 1924 had an esti- mated value of $L232,000, and in 1925 of $1,778,000, based upon De- cember prices. This industry was seriously affected by the postwar agricultural depression, when prices declined to low levels under com- petitive conditions then prevailing. Considerable reducton of acre- AGRICULTURE 39 age and production took place up to 1925, but since then both have increased. Heretofore the greater part of the onion crop has been raised from seed, but within the last few years about half the crop has been produced from sets, which mature much earlier in the season. The experiment station at Amherst is now attempting to develop a milder type of onion, adapted to local growing conditions and to the de- mands of the New England market. Figures of acreage, production, and price per bushel for onions grown in Massachusetts are shown in the following table. Onion Orop in Massachusetts, 1925-1927 Year Acreage Produc- tion in thousands of bushels Price per bushel Car-lot shipments 1925 3,920 4,420 4,550 1,533 1,746 1, 342 $1.08 .62 .74 2,856 1926 3,586 1927_- 0) 1 Data not available. Onion growing in this region is a combination of American farm- ing methods and Old World peasant farming. On account of the large quantity of hand labor required for weeding and harvesting the crop, the actual work of production is largely in the hands of Polish and Lithuanian families. Men, women, and children all take part in the laborious handwork. These thrifty people of immigrant stock are rapidly coming into ownership of much of the land on which in former years they worked for the native American own- ers for wages or grew the crop on shares. Modern machinery and commercial fertilizers are used extensively along with the hand labor. The crop is marketed largely through a limited number of resi- dent buyers. The crops produced from sets, maturing in August, are transported by truck direct from the fields to the railways. Much of the late crop maturing in September is placed in local storage houses for shipment during the winter season. The market for the onion crop covers a fairly wide territory in the neighboring States but is not nearly so extensive as that for the New England potato crop. SWEET CORN AND OTHER VEGETABLES FOR CANNING Sweet corn. — The growing of sweet corn for canning has attained the rank of a specialized commercial crop, holding a place of impor- tance in northern New England corresponding to that of onions in Massachusetts. The principal production of sweet corn for canning is in the State of Maine, whose acreage, production, and total value in 1925 was approximately 80 per cent of the New England total. In that year there were 19,720 acres in New England, and the total value of product was $1,539,000. The acreage in Maine was 15,630 and value of crop, $1,312,000; acreage in Vermont was 2,620 and value of crop, $131,000; acreage in New Hampshire was 1,470 and value of crop, $96,000. 40 [INDUSTRIAL STBUCTURE OF NEW ENGLAND Nearly one-half of the total acreage and value of the crop in Maine was in the three counties of Oxford, Somerset, and Kennebec. Other important producing counties in Maine were Cumberland, with 1,720 acres and crop valued at $135,140; Androscoggin, 1,430 acres and crop valued at $110,648; Penobscot, 1,480 acres and crop valued at $116,719; Waldo, 1,220 acres and crop valued at $105,291; Franklin, 1,270 acres and crop valued at $124,724; and York, 560 acres and crop valued at $44,164. Besides these there were 280 acres in Lin- coln and Knox Counties, with a crop valued at $26,367, and 10 acres in Piscataquis County. In Vermont, Chittenden County had more than twice as much sweet-corn acreage as any other county in the State, with 840 acres and a crop valued at $45,224. The other counties, in order of im- portance, were Franklin, Grand Isle, Orange, Windham, Washington, and Windsor. In New Hampshire the principal counties are Rock- ingham, with 460 acres and a crop valued at $28,750 ; Merrimack, 410 acres and crop valued at $25,625; and Carroll, 330 acres and crop valued at $23,425. The other New Hampshire counties in order are Stratford, with 80 acres; Belknap, with 60 acres; Grafton, with 50 acres ; and Cheshire and Sullivan, with 40 acres each. The high quality of the sweet corn produced in northern New England, where the cool climate produces an especially fine flavor, has been an important factor in the development of this industry. The canned product is well liked in the market where it is known, and it usually commands a premium in price. It has to meet compe- tition, however, from the large-scale production of the farms of New York, Wisconsin, and other States, and this competition is a factor in keeping down the acreage in New England. Most of the corn in New England is grown in relatively small fields of a few acres, scattered about a large area; production in the West is in larger fields and canning operations are carried on in larger units and at a lower cost. Sweet-Corn Acreage, Production, and Price Per Ton, by States, 1924-1927 Slate and year Acreage Production in tons Price per ton Maine: L924 . 13, 390 15, 630 14, 650 8, 260 1,200 1,470 1,050 780 302, 790 393,910 317,310 213,830 36, 200 45, 300 46, 900 23, 100 3, 400 3. 800 2,400 1,800 527, 800 1,014, 100 816,000 395, 800 $29. 10 1926 29.76 1926 - "- 28. 72 L927 22. 30 ; lampshire: 1924 24. 40 1926 25. 00 1926 23. 65 21.60 -Hates: 1924 14.17 15.04 1926 _.._. 13.23 12.13 Peas.- The production of peas for canning has become of some importance in Maine, especially in Oxford, Somerset, and Waldo Counties, where it has been on the increase in the last few years. The vnhic of this crop was $63,000 in 11)24 and $1 12,000 in 1925. Considerable expansion appears feasible in conjunction with the AGmcri/rrnr, 41 growing of swee< corn, as the cool climate of this region is an im- portant factor in quality production of both crops. Difficulties encountered with the green pea louse have curtailed production in the last year or two. Green-Pea Acreage, Production, and Price Per Ton in Maine, 1024-1027 Year Acreage Production in Ions Price per ton 1924 1, 030 1,770 1, HO 690 900 L,600 000 600 C70 70 70 70 1925 1926 1927 . Tomatoes.— The growing of tomatoes has been of some local im- portance in a small area of southern Connecticut, centering about tin- town of Guilford, where there is a cannery that supplies a consider- able market with its product. DRY BEANS Production of dry beans as a cash crop is of some importance in Maine and in Vermont, although unimportant in the other New England States. Its total value for New England was estimated at $544,000 in 1924 and at $478,000 in 1925. In the latter year the value of Maine's crop was $280,000 and that of Vermont's crop was $198,000. Each of these States had about 4,000 acres in production. The crop in Maine is grown in small acreages, scattered throughout the State, but in Vermont a specialized region in Grand Isle County with rela- tively large acreages produces about 60 per cent of the State's output. MARKET-GARDEN CROPS The importance of market gardening in terms of money value to the producer is hard to ascertain, and the acreage and production are subject to rather broad estimates. The census of 1925 gives for all New England a total of nearly 48,000 acres devoted to market- garden products, but this apparently includes sweet corn grown for canning as well as that for fresh consumption. In the total figures Massachusetts was in the lead with 18,428 acres, followed by Maine with 14,226 acres; Connecticut, 7,863; New Hampshire, 3,026; Ver- mont, 2,670; and Rhode Island, 1,896. The acreage in each State for each of the seven vegetables included in the census figures, together with strawberries, is shown in the following table. Acreage in Market-Garden Crops in New England States in 1925 Crop New England Maine New Hamp- shire Vermont Massa- chusetts Rhode Island Connect- icut Cabbage... _ ... 4,918 407 1,158 3,936 30, 817 3,455 102 590 33 67 64 12, 574 180 4 254 16 40 52 2,182 123 7 216 19 23 86 2,039 96 11 2,571 144 800 3,422 8,462 1,618 38 212 28 55 42 1,200 260 11 1,075 Cantaloupes and muskmelons-. Lettuce __ 167 173 Onions (dry) 270 Sweet corn 4,360 Tomatoes 1,178 Watermelons 31 Total 44, 793 3,397 13, 512 714 2,674 352 2,490 261 17, 055 1,373 1,808 88 7,254 Strawberries 609 Source: U. S. Census of Agriculture, 1925. 42 INDUSTRIAL fcTRUCTUKfc OF NEW KNULA NO AREAS OF SPECIALIZATION The highest development of market gardening is in the vicinity of the large industrial centers. The most important specialized mar- ket-gardening regions are an area in eastern Massachusetts, north of Boston, and a similar area southeast of Providence, in Rhode Island. In these two districts the industry has been highly developed by farmers of native New England parentage, whose operations are carried on extensively in fairly large-sized units. Operations are conducted also on a smaller scale by Italians and others of foreign stock. The area adjacent to metropolitan Boston extends from Box- boro to Danvers, dipping down to include parts of the towns and cities adjacent to the northwestern border of the metropolitan area* The Providence area extends in a belt down through the cen- ter of Bristol County, in Massachusetts, to include the eastern edge of Rhode Island. Tnere are several small market-gardening dis- tricts in northeastern Massachusetts which supply adjacent cities. Southwest of Worcester is the producing area which supplies that city. In the neighborhood of Fitchburg there are market-gardening activities of considerable importance, largely operated by families of Finnish stock, whose operations are mainly on a small scale. vSimilar local producing areas exist adjacent to Springfield, Pittsfield, and the larger cities of Connecticut. In the lower Connecticut River Valley, and in some other scattered areas which have the advantage of peculiarly good soil conditions, market-gardening is carried on by local farmers, who do not produce for any particular city but ship to various markets. Formerly the industry was located nearer to the consuming cen- ters, but in the last two decades the introduction of the motor truck has made more remote producing regions accessible to the centers of consumption. Expansion of residential areas of the cities through real-estate developments also has preempted much of the former gardening areas, so that the industry has been forced out into the surrounding country. The increase in land prices near the cities has made these changes profitable to the farmer owners, who are probably the only farming class which has profited materially from this source. Akin to the intensified methods used in market gardening is the production of vegetables and flowers under glass. This is an indus- try whose importance is quite comparable with that of the outdoor production of garden crops. The total value of greenhouse products in 1 i > 1 1> was about three-quarters as much as that of vegetables grown in the open air, exclusive of potatoes. A recent study at Amherst Agricultural College showed that in 1927 there were 152 acres of vegetables under glass in Massachusetts, and the gross value of the crops was about $6,000,000. Vegetable forcing had its start in the vicinity of Boston. SPECIALTY CROPS There are two important products of New England rural life — maple products and tobacco — which do not admit of ready classifi- cation. These are therefore discussed separately from fruits and regetabl AGRICULTURE 43 MAPLE SUGAR AND SIRUP New England's most distinctive rural product, made from the sap of its maple trees, ranks fourth or fifth among the individual sources of farm income, with an importance in money value next to that of cranberries. Maple products in 1925 had a reported value of $3,150,000. Of this amount more than four-fifths came from the sale of maple sirup and slightly less than one-fifth from maple sugar. The yield in that year was 2,169,000 pounds of maple sugar and 1,224,000 gallons of sirup. The principal production is in the State of Vermont, which pro- duces nearly 75 per cent of the value of the New England product. Although in 1909 Vermont was surpassed in the value of its maple products by New York State and Ohio (and New York State was nearly as important in 1919), the relative importance of Vermont as the leading State in the industry has increased in recent years. Con- siderable quantities of maple sugar and sirup are produced also in New Hampshire, Maine, and Massachusetts, and a small quantity in Connecticut. The greater proportion of the sugar is produced in the counties of northern Vermont, while the production of sirup is more widely distributed throughout the maple-producing sections. An increasing proportion of the total crop is marketed in the form of sirup. A large portion of the maple sirup for table consumption is dis- tributed through the grocery trade. Most of the product is handled by large dealers, who buy and market much of the Canadian output as well as the American. In the past, a considerable proportion of the output has found a market outside of direct human consump- tion as a sweetening medium for chewing tobacco. Limited results have been obtained through market organization of this industry, but in one section of Vermont a cooperative association has for some years marketed the output of its members. Although improved methods of production have been put into effect in recent years, with a resulting improvement in quality of the product, much might be done in developing more fully the market possibilities of this indus- try. As the product of a permanent and distinctive native resource of the region, it merits the fullest possible development. TOBACCO Among the money crops of New England agriculture, the value of tobacco holds second or third place, being surpassed by the income from potatoes, and sometimes by that from the apple crop. Tobacco is distinctly a regional product, confined to a small area of the Connecticut River Valley, extending northward from Hartford to the limits of northern Massachusetts, with small producing areas both north and south of these limits. There is also a limited pro- duction in the Housatonic Valley of Connecticut. From year to year the value of the product in these areas fluctuates widely, depend- ing upon the market price. As early as 1859 this region produced upward of 9,000,000 pounds of tobacco, and by 1879 the amount had increased to nearly 20,000,000 pounds. From 1910 to 1920 the production increased materially, 44 INDUSTRIAL STRUCTUKK OF NKW KNULAND but since then has fallen off. During the last decade the crop has averaged about 50,000,000 pounds, although there have been sharp fluctuations from year to year. ACREAGE AND PRODUCTION Figures of acreage and production from 1921 to 1927, and of yield per acre and prices from 1923 to 1927 are shown for Massachusetts and Connecticut and for the entire United States in the following tables. New England Tobacco Acreage and Production, by States, 1921-1927 Acreage Production in thousands of pounds State Average, 1921-1924 1925 1926 1927 Average, 1921-1924 1925 1926 1927 Massachusetts Connecticut 9,120 29, 280 1, 692, 420 8,600 29, 600 1, 757, 300 6,500 21, 900 1, 656, 400 7,100 23, 600 1, 610, 200 11, 750 38, 812 1, 291, 922 10, 690 40, 019 1, 376, 628 9,412 29, 346 1, 297, 889 8,683 28, 886 All other United States ._ 1, 237, 832 Tobacco Yield Per Acre and Estimated Price Per Pound, by States, Decem- ber 1, 192&-1927 State Yield per acre Estimated price, cents per pound 1923 1924 1925 1926 1927 1923 1924 1925 1926 1927 .\Ia> 6, 640, 333 5, 443, 850 16, 831, 529 1926 Quantity Value 1,950 573, 748 0) 23, 130 202, 065 0) ( 5 ) 2, 969, 172 (13) 0) 2, 089, 340 $3,971,586 2 28, 973 (12) 0) (12) 2, 653, 746 0) ( 5 ) 3, 276, 787 (13) 0) 6 6, 216, 793 6, 284, 324 16, 786, 577 Quantity Value (12) 1,626 744, 091 0) 129, 039 189, 343 0) ( 5 ) 646, 335 (13) 0) 629, 890 (12) * $2,398, 474 2 23, 240 2 6, 008, 556 0) (12) 2, 325, 031 0) ( 5 ) 2, 495, 696 (13) 0) e 7, 291, 969 4, 343, 124 16, 295, 373 1 Value included under "Miscellaneous." 2 Value not included in total value for State. 3 Figures obtained through cooperation with Bureau of the Census. 4 Exclusive of pottery, value for which is included under "Miscellaneous." fi No canvass. 6 Exclusive of sandstone, value for which is included under "Miscellaneous." > Includes minerals indicated by " l ," " 4 ," and " 6 " above. Mineral Production of Vermont, 1925-1927 Product 1925 1926 1927 Quantity Value Quantity Value Quantity Value C lay products i $98, 564 3 9, 444 (12) 3 $11, 364 66, 248 41 677, 944 («) ( 5 ) 25, 535 ( 2 ) 1,227 4, 267, 041 9, 244, 465 514, 527 158, 133 (12) Clay, raw short tons.. Copper .pounds.. 1,733 2,027 473, 200 2 56, 378 ( 4 ) 14, 970 141, 554 ( 2 ) 1,965 (2 3) 208, 224 (2 3) $27, 278 Gold troy ounces. . Lime short tons. . Mineral waters gallons sold.. Ore (copper) _ .short tons. . 66, 245 ( 4 ) 788, 936 ( 4 ) 61,024 ( 4 ) 4,363 171, 250 ( 2 ) 821 683, 440 ( 4 ) ( 5 ) Sand and gravel __do Scythestones do Silver troy ounces. . 192, 227 ( 2 ) 35, 608 ( 2 ) 39, 143 ( 2 ) 465 Slate 3, 963, 025 6 8, 958, 846 533, 603 30, 351 4,108,911 Stone short tons. . Talc do.... Miscellaneous 7 6 283, 030 54, 883 330, 230 53, 510 321, 970 54,688 9,216,116 503, 716 136, 872 Total value, eliminating duplications 14, 408, 933 14, 955, 161 14, 702, 891 1 Figures obtained through cooperation with Bureau of the Census. 2 Value included under "Miscellaneous." 3 Value not included in total value for State. 4 No canvass. 5 Not valued as ore; value of recoverable metal content included under the metals. 6 Exclusive of sandstone, value for which is included under "Miscellaneous." 7 Includes minerals indicated by "3" and " 6 " above. 60 INDUSTRIAL STRUCTURE OF STEW ENGLAND MlNEEAL PBODUCTION OF CONNECTICUT, 11)25 11)27 Product Clay products Clay, raw ..short tons.. Feldspar (crude) long tons.. Lime short tons.. Mica: Scrap. do Sheet pounds. _ Mineral waters gallons sold.. Sand and gravel short tons.. Sand-lime brick thousands.. Silica (quartz) short tons.. Stone do Miscellaneous 7 Total value, eliminating duplications 1925 Quantity Value 416 10, 426 58, 449 w (<) 0) 1, 065, 132 (14) 595 1, 830, 210 2 $2,509,727 3 6, 503 71, 201 672, 821 (*) (*) ( 5 ) 463, 807 0') 3,960 2, 655, 339 378, 599 6, 755, 454 1926 Quantity Value 794 11,436 61, 742 0) ( 5 ) 1,059,556 (14) 246 6 2, 069, 920 2 $3,291,298 3 9, 491 87, 844 695, 495 0) ( 5 ) 451, 069 4 ) 1,678 5 2,680, '" 487, 108 7, 695, 341 Quantity Value 621 6,123 53,304 (*) 0) ( 5 ) 667, 983 (14) 2, 295, 360 1 2 $2,652,640 3 6, 225 43,319 608, 550 0) 0) ( 5 ) 485, 169 (14) 3, 202, 040 307, 382 7, 299, 100 i Figures obtained through cooperation with Bureau of the Census. 2 Exclusive of pottery, value for which is included under " Miscellaneous. " 3 Value not included in total value for State. 4 Value included under "Miscellaneous. " 5 No canvass. 6 Exclusive of limestone, value for which is included under " Miscellaneous. " 7 Includes mineral indicated by " 2 ", " 4 ", and " 6 " above. Mineral Production of Maine, 1925-1927 Product 1925 1926 1927 Quantity Value Quantity Value Quantity Value Clav products i $625, 969 (2 3) 256, 731 (*) 1,291,812 (12) (2 3) $306, 695 0) 1, 615, 776 > $680, 739 Clay, raw short tons.. Feldspar (crude) long tons.. Gems and precious stones (2 3) 28,404 (2 3) 33, 897 266 34, 328 3 3, 392 299, 386 ( 4 ) Lime _ .short tons . . Lithium minerals do 115, 571 128, 120 116, 566 ( 2 ) 500 ( 2 ) ( 2 ) («) (0 584, 395 ( 2 ) 1, 230, 356 ( 2 ) Marl, calcareous.. _ ...do ( 2 ) ( 2 ) 4,250 Mica: Scrap do ( 2 ) ( 2 ) 0) ( 2 ) 407, 700 ( 2 ) ( 2 ) ( 2 ) 0) ( 2 ) 155, 014 ( 2 ) 004, 0(52 s 2, 870, 442 38, 942 ( 2 ) Sheet pounds. . ( 2 ) Mineral waters gallons sold-. Peat short tons. . ( 4 ) ( 4 ) Sand and gravel do B i lica (q uartz) do Slate. . 491, 200 328 220, 931 1,050 602, 184 2, 300, 593 022, 294 251, 448 ( 2 ) 549, 952 Stone short tons. _ Miscellaneous 6 5 361, 570 311,830 355, 800 2, 447, (544 11, 920 Total value, eliminating duplications. 5, 838, 718 5, 785, 619 5, 095, 000 1 Figures obtained through cooperation with Bureau of the Census. i Value Included under "Miscellaneous." Value not Included in total value for state. ■ No canvass. i Exclusive of unclassified stone, value for which is included under " Miscellaneous." I Include minerals indicated by "*'" and " 5 " above. MINERAL RESOURCES 61 Mineral Pboduction of New Hampshire, L925-1927 Product 1925 1926 1927 Quantity Value Quantity Value Quantity Value Clay products i $828, 541 100 278, 736 ( 2 ) 47, 525 198, 858 2,908 ( 3 ) 316, 248 ( 2 ) ( 2 ) * 1, 712, 138 79, 783 i $881, 997 130 287, 596 ( 2 ) 38, 213 235, 890 3, 563 ( 3 ) 731, 639 ( 2 ) 1,053 1, 908, 284 56, 280 i $811,626 455 Diatomite short tons.. 2 38, 366 ( 2 ) 1,953 1, 120, 857 2 33, 271 ( 2 ) 1,738 1,371,890 7 27, 449 ( 2 ) 1,284 720, 219 Feldspar (crude) ..long tons.. ' 223, 077 ( 2 ) 22, 900 78, 849 1, 025 Qarnet, abrasive. .. Mica: Scrap Sheet Millstones . short tons.. do.... pounds.. Mineral waters Sand and gravel Scythestones Silica (quartz) Stone Miscellaneous 5 gallons sold., .short tons.. do.... do.... .do.... ( 3 ) 424, 330 ( 2 ) ( 2 ) * 130, 120 ( 3 ) 708, 098 ( 2 ) 277 148, 250 ( 8 ) 863, 618 ( 2 ) ( 2 ) 4 178, 300 ( 3 ) 653, 214 ( 2 ) ( 2 ) 4 1, 584, 262 71,688 eliminating Total value, duplications 3, 464, 837 4, 144, 645 3, 447, 000 1 Figures obtained through cooperation with Bureau of the Census. 2 Value included under ''Miscellaneous." 3 No canvass. 4 Exclusive of unclassified stone, value for which is included under "Miscellaneous.' 5 Includes minerals indicated by " 2 " and " 4 " above. Mineral Production of Rhode Island, 1925-1927 Product 1925 1926 1927 Quantity Value Quantity Value Quantity Value Olay products (12) (13) 0) (0 ( 4 ) $45, 157 s 724, 428 1, 803, 150 (12) (13) 0) $42, 535 ( 4 ) 90, 538 6 895, 718 1, 446, 495 (12) Coke short tons. . Graphite, amorphous do Lime do Mineral waters gallons sold.. Sand and gravel short tons.. Stone do Miscellaneous 6 (13) 0) 0) («) 131, 535 s 153, 230 (13) 0) 2,857 0) 381, 856 5 252, 280 (13) 0) 2,937 ( 4 ) 271, 065 5 153, 400 (13) (0 $43, 342 ( 4 ) 303, 639 s 734, 164 1, 360, 219 Total value, eliminating duplications 1, 151, 857 1, 339, 398 1, 311, 000 1 Value included under "Miscellaneous." 2 Figures obtained through cooperation with Bureau of the Census. 3 Value not included in total value for State. 4 No canvass. s Exclusive of limestone, value for which is included under "Miscellaneous." r > Includes minerals indicated by <<1 " and " 5 " above. STONE PRODUCTION Although most of the stone industries of New England are con- centrated in a few localities, yet they are of considerable importance in certain areas within each State. The greater part of the New England stone industry is in the interior of the region. Large quan- tities of stone, however, are quarried along the coast of Maine; on the Massachusetts coast at Cape Ann, Quincy, and New Bedford ; on the coast of Rhode Island at Westerly; and along the Sound in Connecticut. These tidewater quarries have a particular advan- tage in cheap and easy water transportation to points along the Atlantic and Gulf coasts. 62 INDUSTRIAL STRUCTURE OF NEW ENGLAND GRANITE Granite is the most widely distributed of the New England minerals which have any commercial importance. Massachusetts now slightly surpasses Vermont in value of production, which is followed in order by Maine and New Hampshire. There are important quarries also in Rhode Island and Connecticut. In Massachusetts, with minor exceptions, the granite quarries lie in the eastern portion of the State, principally along the coast from New Bedford to Cape Ann. The granite quarries of Vermont are located in the eastern half of the State, extending from the Canadian line to Brattleboro. In Maine they are concentrated along the coast and on the adjacent islands, with a few quarries as far as 55 miles inland. In New Hampshire the granite quarries are located on the slopes of the White Mountains and also about Concord and near the State bound- aries of Vermont and Massachusetts. Almost all the quarries in Rhode Island are along the Sound, extending westward to the State line. In the State of Connecticut the quarries are principally along the coast, a few border Rhode Island, and others are located in the western part of the State and along the Connecticut River. MARBLE The leading marble deposits of New England are concentrated in Vermont, west of the Green Mountains, in Bennington, Rutland, Crittenden, and Addison Counties ; and also at Swanton, in Franklin County, and on Isle la Motte, in Grand Isle County. Less important deposits are located on the east side of the Green Mountains, in Washington and Orange Counties. In Massachusetts there are mar- ble deposits in Berkshire and Hampden Counties, but the marble quarried in this State represents a very small portion of the New England total. There are marble deposits also in Litchfield County, Conn., which are not significant in the present production. SLATE New England production of slate comprises an important part of the United States total. The output of Vermont and Maine in 1926 together constituted 36 per cent of the value of the national product and amounted to nearly $5,000,000. The Vermont slate deposits ap- pear in four distinct districts. The most important district, which furnishes the well-known purple slates, extends for a distance of 26 miles along the New York State line southeast from the town of Sudbury, in Rutland County, to Rupert, in Bennington County. An- other district extends northward along the Connecticut River for more than two-thirds the length of the State; while the third extends from the Canadian line to about the middle of the State, along the east flank of the Green Mountains. The fourth district, which is as yet undeveloped, covers only '2 or 3 square miles near Lake Champlain, in the township of Benson, in Rutland County. The slate now produced in Maine comes from Monson, in Piscataquis ( lountjr. MTNERATi RESOTTRCES 63 LIMESTONE AND LIME Limestone deposits occur in each of the New England States except New Hampshire, and the production of lime is an important indus- try in certain sections, particularly in western Massachusetts and along the Maine coast. The limestone belt of western Massachusetts extends northward into western Vermont and southeastward into Connecticut. In some localities the deposits are made up of fcalcitic limestone and in others of dolomitic or magnesium limestone. There are other deposits in Worcester and Middlesex Counties of Massa- chusetts and also in Providence County in Rhode Island. The prin- cipal limestone deposits of Maine are in Knox County, with Rock- land as the principal center of commercial production. The im- portant lime-producing sections in Massachusetts are in Berkshire County; in Maine, Knox County; in Vermont, Addison, Chittenden, Franklin, Rutland, and Windsor Counties; in Connecticut, Fairfield and Litchfield Counties; and in Rhode Island, Providence County. CLAY, SAND, AND GRAVEL Clay. — Deposits of clay occur in all the New England States. In Massachusetts they occur in all parts of the State ; clay suitable for making fire brick is found in Bristol and Duke Counties. In Con- necticut there are abundant supplies, with clay suitable for making fire brick in Litchfield County and kaolin for porcelain in Fairfield, Hartford, and Litchfield Counties. Rhode Island has clay deposits in Bristol and Providence Counties and pottery clay in Newport County. Clay deposits occur in all sections of Maine. New Hampshire has clay deposits in most parts of the State, with pottery clay obtainable in Cheshire County. In Vermont clay suitable for fire brick occurs in Rutland County and kaolin in Addison, Bennington, and Rut- land Counties. Sand and gravel. — Supplies of sand and gravel suitable for build- ing and other purposes occur generally throughout New England in adequate quantities for all local requirements. FELDSPAR Feldspar is an important mineral in the manufacture of pottery, chinaware, porcelain, enamel ware, and enameled brick and tile. Nearly half the crude feldspar produced in the United States in 1925 came from New England. North Carolina is the leading single State ; New Hampshire ranks second, Maine, third, and Connecticut fifth. The value of this product from the three New England States in 1925 was $607,000, and this value was exceeded considerably by the production of the following year. The granite pegmatites, in which occur deposits of feldspar, quartz, mica, and gem minerals, occur in New England in a belt extending northward through Connecticut, Massachusetts, New Hampshire, and southwestern Maine. The gen- eral color of granite is determined by the color of the feldspar which it contains. Connecticut has important feldspar deposits extending south and west of Hartford for about 20 miles in Middlesex and Hartford Counties. In New Hampshire the important sources of 64 lXDl'STIMAL STKUCTURE OF NEW ENGLAND high-grade feldspar are the mica mines north of Keene, in Cheshire County. Most of the feldspar deposits in Maine are relatively near the coast, in Androscoggin, Oxford, and Sagadahoc Counties. MICA The production of mica muscovite in New England is confined principally to New Hampshire, although Connecticut and Maine pro- duce small amounts. Nearly all the mica produced in the United States comes from New Hampshire and North Carolina. North Carolina at present surpasses New Hampshire in quantity produced and in some years has led in the value of the product, but since 1924 New Hampshire has held leadership in value. The total reported New England production in 1925 had a value of approximately $250,000. In that year New Hampshire contributed 62 per cent of the total domestic sheet-mica production of the United States, and in 1924, 51 per cent. The value showed substantial increase in 192(>. The most important mica deposits in New Hampshire lie in the belt extending northward from Keene through the middle of Cheshire County into Sullivan County, and from the northwestern part of Merrimack County northeast to about the center of Grafton County. Mining operations were begun in New Hampshire in 1803, and this was the only producing State until 1868, when the North Carolina deposits were opened. Since that time North Carolina has held the leadership in quantity produced. The principal uses of New England mica are in the electrical industries ; in the glazing of stoves and furnaces, for lamp chimneys, and for diaphragms in phonographic and similar instruments. Ground mica finds use in the preparation of roofing, as a decorative material for wall paper and other decorations, in the making of special paints, and, occasionally, as a facing for concrete to simulate granite. Finely ground mica is used in lubricants and as a rubber filler. TALC Vermont is the only New England State producing large quanti- ties of talc and soapstone. Mining of these began over a century ago, but grinding of talc did not commence until about 1902; since that time, up to 1921, there was a gradual increase in production. This State held the leadership of the United States in quantity pro- duced from 1917 through 1923. Prior to 1917 and since 1923 New York lias ranked first in quantity. Because of the higher grade of the product of New York, that State has always held the leadership in the value of product. Vermont was the second largest producer of talc in 1925 and 1920, the total value of its product in 1925 being upward of $533,000 and representing 26.5 per cent of the total value for* the United States. There was some falling off in value in the following year. The Largest known talc reserves of any producing State in the [Jnion are -aid to be in Vermont. In this State one company has blocked out with diamond drills reserves exceeding 2,800,000 tons, nwd another company in a published report estimates that it has reserves of about 4,250,000 tons. The present talc-producing centers of Vermont are at Johnson, in Lamoille County; at Rochester and MINERAL RESOURCES 65 near Chester, in Windsor County; at cast Granville, in Addison County; at Waterbury, in Washington County; and at Windham, in Windham County. Soapstone is produced only at Chester. The greater part of the talc produced in Vermont is sold for use as a filler in the manufacture of paper goods. A portion is used in making prepared roofing, rubber tires and other rubber products, as a lubricant in oils and greases and for foundry facings, also in fire clay products, and in making twine and cordage. Vermont talc is used to some extent in the manufacture of paint and of wall plaster, and in the finishing of textiles. OTHER PRODUCTS Asbestos. — Deposits of asbestos occur" in the vicinity of Belvidere Mountain in Vermont. These appear to be a southern extension of the asbestos area in Quebec. The production of asbestos, however, has never become commercially important anywhere in New England. Graphite. — Natural graphite, whose chief uses are in the manu- facture of foundry facings, pigments and paints, crucibles, pencils and crayons, and commutator brushes, is produced in Rhode Island by one of the few establishments in the entire United States engaged in this line of manufacture. The deposits are not large, and they occur with the deposits of graphitic coal. Production of amorphous graphite was reported in 1925 from Rhode Island, Michigan, and Nevada, in which Rhode Island was the principal producer. Abrasives. — In the production of natural abrasive materials New England contributes w r hetstones, millstones, and garnet. While these do not make up an imposing total, yet in the production of garnet, which has important industrial uses in the finishing of glass, Merrimack County, N. H., contributed, with Warren County, N. Y., to a total value of $713,000. Peat. — Numerous deposits of peat occur in swamps throughout New England, particularly in the eastern and central parts of Massachu- setts, in eastern Maine, in the northern part of New Hampshire, and in the Champlain Valley of Vermont. These peat deposits at pres- ent have little commercial importance, but they are potential sources of material for fuel or for industrial uses. Mineral maters. — The production of mineral waters in New Eng- land (exclusive of Vermont) in 1923, the latest date for which figures are available, had a value of $628,000, representing 9.7 per cent of the United States total. This was a substantial increase over the New England total (exclusive of New Hampshire) for 1920, which w T as $513,000, representing 10.5 per cent of the United States total. In 1920 Maine contributed about 59 per cent of the total value of New England production, although Massachusetts and Connecticut to- gether contributed 68 per cent of the total quantity. FISHERIES Note. — Most of the section on Fisheries was prepared, by O. E. Sette, of the Bureau of Fisheries. The fishing industries possess an importance for New England be- yond that of the mere wealth invested or the annual income which results to-day from this activity. Fishing was the earliest form of New England industry. It was an important factor in establishing the economic life of the early settlers, and was the basis for building the extensive ocean commercial life of New England in the last cen- tury, which, in turn, was the foundation of its present industrial life. The fisheries, together with the related wholesale trade in fishery products and the industries of fish canning and preserving, in 1924 gave employment to 24,513 persons. Of this number 15,983 were fish- ermen, 6,608 were engaged in canning and preserving, and 1,922 were employed in the wholesale fish trade. The product of the fisheries proper in that year exceeded 406,822,000 pounds, valued at $18,- 818,000. Compared with the total of the United States (exclusive of Alaska) this is about 15 per cent of the persons engaged in the industry and about 20 per cent of the value of the fish catch. New England thus makes a substantial contribution to the protein food supply of the country. In this the section compares favorably with other geographical sections of like size, as may be seen in the next table. The output of New England surpasses in value that of any other section except the Pacific Coast States. The fish industry of New England affords a market for large quantities of salt, ice, gasoline and oil, rubber clothing, nets, lines and cordage, paint and various vessel supplies, and shipping containers and packing cases. The canneries use many cans, large quantities of cottonseed and olive oil, and considerable quantities of parchment paper for wrapping the fish. Moreover, New England is almost the sole domestic source of some of our best-known staple food fish. This group of States produces 91 per cent of the total United States cod catch, practically all the had- dock. 86 per cent of the mackerel, 98 per cent of the swordfish, 87 per cent of the lobsters, and considerable, though smaller, percentages of other important sea foods. 66 FISHERIES 67 Statistical Summary of Fisheries of the United States Section Persons engaged > New England States (1924) Middle Atlantic States (1926). __. Chesapeake States (1925) South Atlantic States (1927) Gulf States (1927) Pacific Coast States (1927) Mississippi River division (1922) Lake States (1927) Total 24,513 14,335 39, 091 14, 805 20, 784 3 22, 270 19, 122 3 8, 162 163,082 Products 2 Quantity Value Thousands of pounds 406, 822 168,012 333, 208 260, 669 200, 072 651, 197 105, 734 * 87, 659 2, 213, 371 Thousands of dollars 18,818 12,456 13, 948 5, 696 10, 167 22, 306 4, 504 7,032 94, 927 1 Includes fishermen and persons employed on transporters, those in the wholesale fish trade, and in the fish canning and preserving industries. 2 Includes products of the fisheries only. 3 Statistics of 1922. 4 Figures are for 1927 except those for shellfish, etc., which are for 1922. Source: U. S. Bureau of Fisheries. Lying in the region which includes the richest fisheries in the world, New England, situated just above the fortieth parallel of north latitude, has all the essentials for a prosperous fishing industry. In addition, the broken coast line provides harbors for the fishermen and favorable waters for fish and fishing. Moreover, the New Eng- land fisheries are not limited to the coast line. The ocean floor slopes so gently from the shores that there are extensive areas of relatively shallow waters far from the coast line itself. These shal- lows — mostly less than 60 fathoms, or 360 feet deep — are, without exception, good fishing grounds. PRINCIPAL FISHING AREAS There are over 20 of these " fishing banks " varying from 40 to 36,000 square miles in area and affording over 63,000 square miles of fishing grounds in addition to the waters immediately along the coast. While the fishermen reach all these banks, as well as the waters of the Gulf of St. Lawrence and the Newfoundland coast, and the waters south to the Carolinas, by far the greatest portion of the catch is taken within a sailing distance of about 200 miles from New England ports. The location of the banks is shown in Figure 3, and their relative productiveness and the principal species are shown in Figure 4. 68 INDUSTRIAL STRUCTURE OF NEW ENGLAND Principal Fishing Grounds in the North Atlantic Ocean Name Locality Approx- imate area Depth of water Catch by American vessels, 1927 Principal species Thou- Square Fath- sands of miles oms pounds Grand Bank Southeast of New- foundland. 36,000 25-60 1,128 Most important fishing ground in the world; principal fish, cod, hake, halibut, and cusk. Green Bank Between Grand and St. Pierre. 1,450 33-60 188 Feeding ground in winter; chiefly a halibut ground. St. Pierre Bank Off center of south- ern coast of New- foundland. 4,800 22-53 750 An important halibut ground; few cod. Gulf of St. Law- 0) 63 Ground of value and importance; rence. cod, haddock, and mackerel. Misaine Bank Northward of the western two-thirds 1,700 40-60 Cod and other fish less abun- dant than in near-by regions; of B anquereau. cod, haddock, hake, cusk, pollock, and hah but. B anquereau 3,000 16-50 1,646 One of the most important grounds; cod, hake, and cusk. Canso Bank Southeast of Cape Canso. 425 30-«0 Cod, haddock, hake, cusk, and pollock. The Gully Between Banquereau 1,200 66-145 69 Chiefly a halibut ground. and Sable Island. * Western Bank 6,320 10-80 8,163 One of the most important of the western Atlantic; cod, had- dock, pollock, cusk, hake, and halibut. LeHave Bank 2 Northeastward of Browns Bank. 2,365 46-85 7,097 Cod, haddock, and halibut, principal fish; hake, cusk, and pollock. Rose way Bank Northward of west- ern part of LeHave Bank. 175 31-48 39 Cod, haddock, and cusk prin- cipal fish; hake, pollock, and halibut. German Bank Westward from Cape 65-100 One of the most important in Sable. the Bay of Fundy; mainly cod, hake, cusk, and haddock; few halibut and pollock. Seal Island Ground Northward of Browns Bank. 1,250 15-70 97 Mainly cod, haddock, and pol- lock; halibut, cusk, and hake; occasionally herring and mack- erel. Cod, haddock, pollock, hake, Browns Bank Northeast of Georges 1,375 20-75 12, 192 Bank. and halibut. Jeffreys Ledge Northeast from Cape 27-35 6,383 Cod, haddock, hake, pollock, Ann. cusk, halibut, and macherel. Cashes Bank East from Cape Ann_ 140 15-85 1,056 Cod, haddock, hake, cusk mostly; pollock and mackerel. Fippenies Bank do 40 36-75 215 Cod, hake, pollock, and cusk; few haddock. Platts Bank Northeast from Cape Ann. 50 29-65 1,252 Cod, haddock, hake, pollock, and cusk; few halibut. Stellwagen Bank.- Between Cape Ann and Cape Cod. 85 12-25 1,836 Cod, haddock, hake, pollock, cusk, and mackerel. Georges Bank Eastward of Cape Cod and Nan- tucket Shoals. 8,500 2-50 38, 923 Largest, and second in impor- tance only to GrandBanks; cod, haddock, hake, halibut, cusk, and pollock; few mackerel. South Channel Between Nantucket Shoals and Georges Bank. 1,300 20-75 121, 700 The most important haddock grounds; cod, hake, pollock, cusk, and halibut. Nantucket Shoals Bast to south of Nan- tucket Island. 1,200 3-25 8,477 Cod, haddock, pollock, hake, and mackerel. shore, general 56, 754 Herring, mackerel, flounders, and miscellaneous. Less than W'. 'The figures given include the proper. Source : i 8. Bur< areas of certain ridges to the eastward of LeHave Bank i Fisheries. TYPES OF FISHING Ai present there is greal differentiation in the fishing industry among the ports of New England. Boston is the leading fresh-fist port of this region, if nol of the whole country. It has a large trade in the distribution of fresh fish over a considerable portion of the i . . I 1 _L ir- N D n 4* f-jr tf- A-**S & s / ^ ...■::f'"'*'*i*: \ ) S \ \ if 4C* $ h creen\. BANK f . /j / v., V & v. i/| | G M A y D B A i • 46' 1 .v /r ..-•'' - 45" *9T 'V *— V.:.^ W /* > v <^.,. x e vr f o u .\ r> l . t A Lf \^ 3GOOO iV \ . U* 43' X^,,, / -43* 42' _ %r «' •T.VANdeBOCERT - 4T * i '»U 54' 53* S3* SI* S O' 41>' 4C 61232* —30. (Face p. 68) ■'*• It 61232°— 30. (Face p. 6 FISHERIES 69 eastern United States. South Boston is now the center of the deep- sea fresh-fish industry. The old T Wharf is a center for boats engaged in the inshore fishing, while East Boston cures fish and manufactures fish residue, and, in addition, large quantities of deep- sea fish are landed there. The Cape Cod district now handles only inshore fish, and special- izes in shellfish. The shallow waters around Nantucket are the source of flounders, many of which are shipped to the New York market. The waters extending from Marthas Vineyard to the west- ern part of Long Island Sound produce various kinds of inshore fish, and the Sound ports specialize in the oyster industry. Gloucester, the center of the salt-fish industry and the second im- portant port for the landing of deep-sea fish in New England, has re- cently become important as a center for the canning of deep-sea fish. Very recently it has developed an important business in the distribution of fresh and frozen fillets. Herring fishing is important on the Maine coast, and these fish are canned, smoked, and pickled in the ports of that State. An im- portant phase of this industry, sardine canning, has developed in and near Eastport. Lobster fishing is important on the Maine coast and in the neighboring waters near the Maritime Provinces of Canada. The shipment of live lobsters is important at Portland. The trend of the fishing industry during the last generation is shown by figures of total yield, which have been taken at irregular intervals during the past four decades. The following table sum- marizes these statistics. It shows a decline in the volume of the catch and in the number of men employed in the industry, but an increase in the investment and in the value of the annual production. Summary of New England Fishing Industry, 1880-1924 Persons engaged Investment, in thousands of dollars Products Year Thousands of pounds Value, in thousands of dollars 1880 37, 043 37, 381 37, 310 36, 536 35, 631 39, 250 37, 339 22, 157 30, 767 24,513 19,903 20, 381 20, 134 20, 095 19, 637 20,008 22, 531 11,969 40, 597 28, 562 12, 503 1887 520, 214 572, 908 653, 170 393, 458 534, 075 480, 284 530, 029 470, 995 406, 822 9,913 1888 9,860 1889 10, 551 1898 9,682 1902 12, 406 1905 14, 184 1908 15, 139 1919 19, 887 1924 18, 818 Source: Report of Commissioner of Fisheries, 1926, p. 301. HISTORICAL DEVELOPMENT Fishing made its appearance in New England waters before any permanent settlements were established. In the northern waters, now worked by Boston fishermen, British and French vessels caught fish a century before the landing of the Mayflower. Fish formed an (51232°— 30 6 70 INDUSTRIAL STRUCTURE OF NEW ENGLAND important part of the diet of the first settlers, and the industry was prominent among the activities of the colonists. Just before the Revolution the fisheries employed 10,000 men. It has been estimated that there were then 665 vessels carrying 4,400 men engaged in the cod fisheries alone. The cod was at that time the only deep-sea fish caught or eaten to any extent. The early catching of edible fish was concentrated particularly along the shores of Cape Cod, where men who fished in the summer worked in the salt factories during the winter. The whaling industry was important in the early days — indeed, the first ship to fly the Stars and Stripes in European waters was a whaler from New Bedford. Whaling made such progress that in the middle of the last century the value of its products exceeded that of all other fisheries combined. From 1835 to 1860 the whaling fleet of New England averaged more than 600 vessels a year and brought in products worth about $8,000,000 a year. In 1857 New Bedford, which was the leader in this industry, had 329 vessels valued at $12,000,000, and over 10,000 seamen were engaged in whaling. By the outbreak of the Civil War this branch of the industry was beginning to disappear. Gloucester gradually came to the fore in the early part of the nine- teenth century, and in 1859 it had a fleet of 300 schooners employing over 3,500 hands. The mackerel industry came into being in that period, the first trip for catching and salting that fish being in 1818. Halibut were caught at Georges Bank as early as 1819, and about 1830 halibut fishing became a regularly developed phase of the fishing industry. The herring industry of the Maine coast was firmly estalished by the middle of the last century, although herring had been used to a certain extent in earlier times. The menhaden fishing also assumed considerable importance in the middle of the last century. A number of factories along the coast were engaged in steam-cooking these fish for their oil, which was used for paint as early as 1812. Menhaden and other fish were used quite extensively also for fertilizer. Oysters were transplanted to the shore waters of Rhode Island and Connecticut from Chesapeake Bay about 1840, and lobsters became a product of commercial importance as early as 1830. The business of canning lobsters started in Maine in 1843 and had developed to a considerable extent by 1860. Since the Civil War there have been important changes in the fishing industry. Its position in New England is relatively less important than formerly, owing chiefly to the more rapid develop- ment of other lines of activity. As a result of the develop- ment of fisheries in other sections of the country, New England has lost its national position of preeminence in this industry. The deep- sea fisheries of this region have declined on the whole, but the inshore phase of the industry has experienced material development. The chief change that has come about is the decline of the whaling industry. Until 1850 the only fisheries of consequence were those for whale, cod, and mackerel. By 1908 whaling had practically dis- appeared in New England, and the oyster led all species of fish in the value of product. The menhaden industry also became of little FISHERIES 71 consequence in this region several decades ago. The cod and mackerel industries reached their maximum development in the early years of the Civil War. While these declined for a time, they by no means became unimportant and they have advanced recently. GENERAL TREND AND PROSPECTS The proximity of New England to the only extensive offshore fish- ing grounds on the Atlantic coast of the United States gives these northeastern States a unique advantage as compared with other sec- tions. The offshore banks where cod, haddock, and other ground fish abound are immune to the harmful results of industrialization, such as stream obstruction and pollution, which have seriously affected the fisheries in certain of our river, lake, and inshore areas. The fisheries of the offshore grounds form the very backbone of New England's sea-food resources. With these grounds relatively resist- ant to the influences of man, there is good reason to expect the fisheries to maintain their productiveness at a relatively high level. With the inshore fisheries, which are also highly important com- ponents of the sea-food industry, this is not the case. The Atlantic salmon, which in early days abounded in every stream of the New England coast and were taken by the thousands, are now extinct in most of the streams, and only a few hundred are taken in some of the rivers of Maine. The lobster fishery long ago failed to supply suffi- cient of these crustaceans for the American trade. The yield is only a fraction of what it formerly was, and many of the lobsters now on the American market come from the Canadian Maritime Provinces. Other examples of depletion might be given, but these suffice to em- phasize the fact that sea-food resources are not inexhaustible and that measures to assure perpetuity of the supply are highly important to the industries which depend on these resources for their raw ma- terial. This is true of the offshore as well as the inshore fisheries, though serious depletion seems less imminent in the former case. The responsibility for conservation in New England resides in the several State governments. The States have direct jurisdiction over fisheries and enforce whatever regulations are enacted by their respec- tive legislatures. Their functions are largely those of enforcement and patrol, and much greater attention is accorded the fresh-water and sports fisheries than the marine and commercial fisheries. This greater attention to inland resources is largely due to the close asso- ciation of fish and game laws. The whole scheme has resulted in a lack of policy with regard to commercial fisheries, which are regu- lated largely according to political expediency. There is no pro- vision for the scientific study of the fisheries such as would permit the formulation of a policy providing the maximum exploitation of the resources consistent with their permanent preservation. Under these conditions we might expect overexploitation of some kinds of fish and underexploitation of others, and this is what has actually taken place. Many kinds of fish and shellfish that were overexploited in former days are now yielding but a fraction of their potential output, while others which formerly were considered of no economic importance have now become valuable commercially, 72 INDUSTRIAL STRUCTURE OF NEW ENGLAND with the result that the total yield has remained very nearly con- stant. This becomes a matter of concern when it is realized that at the present time there are few additional kinds to turn to when those now fished decline. The lack of a conservation policy on the part of the States is compensated to some extent by fisheries research work carried on in this region by the United States Bureau of Fisheries. This re- search is of assistance in developing the principles of conservation to be followed in some of the important fisheries, but it can not take the place of carefully formulated programs of conservation by the States themselves. An essential feature of such programs is the sci- entific observation of fishing to detect depletion in its earliest stages. Exploitation of fisheries can then proceed unhindered as long as they show no signs of depletion; when that occurs, proper restrictions might be applied promptly enough to prevent irremediable damage. Such a policy would tend to prevent the passage of unnecessary restrictive measures, and would facilitate the promulgation of needed regulations. The future of the fisheries depends largely upon the extent to which such a definite policy is followed. The commercial and economic phases of the fisheries are here dis- cussed in three sections under the following headings: (1) Fishing- operations; (2) the wholesale fish trade; and (3) the fish canning and preserving industries. There is quite an elaborate organization in the fishing industry. Much of the production is carried on by corporations of considerable size, which conduct both fishing and marketing operations. The New England Fish Exchange is an organization for facilitating marketing operations. In schooner fishing the captain, as a rule, is financial manager of the trip, and he provisions the vessel and sells the catch on return to port. The receipts from the catch are divided, the vessel owner having the first lien for his share ; then provisions and supplies are paid for. The captain next gets 10 per cent, and the remainder is divided between the crew and the captain. In the trawler industry the management is usually in the hands of a large corporation, and the captain and the crew are paid regular wages. The wholesalers on the pier are a separate group from the fishermen and captains, although some of the dealer-corporations own and operate vessels, particularly of the trawler class. FISHING OPERATIONS The enterprise of fishing is carried on in a great many ways, the operating units varying in size and importance from the one-man boat fishing alongshore to the 200-ton vessel sailing out to the off- shore banks; and from simple apparatus, like hook and line or dip net, to the relatively complicated otter trawls, pound nets, or purse seines. An arbitrary division between the small boat or shore fish- eries and the vessel fisheries appears in the published statistics on the subject. Fishing carried on by boats of 5 tons net and over, as measured by the customs service, is included in the vessel fishery, FISHERIES 73 and all fishing carried on with smaller boats or without boats is regarded as shore fisheries. vessel fishing is concerned primarily with the catch of the ground fish, which live and feed close to the bottom of the sea. The chief ground fish arc cod, haddock, halibut, hake, cush, pollock, and floun- ders. The mackerel and swordfish are not ground fish. They live and feed farther from the bottom, but they are caught in the vessel fisheries. GROUND FISH The fishing for cod, haddock, halibut, hake, cusk, and pollock is probably the oldest and most typical of the New England fisheries. In recent years flounders have become important components of the ground-fish catch. These fish are found principally on the offshore hanks, although large quantities are also taken on the grounds along the shore. Species of Fish Landed by Fishing Vessels at Boston, Gloucestee, and Portland, 1893 to 1928 [In thousands of pounds] Cod Year Fresh Salted Haddock Fresh Salted Hake Fresh Salted Pollock Fresh Salted 1893. 1894. 1895. 1897- . 1898.. 1899.. 1900- 1901- 1902- . 1903.. 1904- 1905_ . 1906- 1907.. 1908.. 1909- . 1910. . 1911.. 1912-. 1913- 1914- 1915- 1916- 1917.. 1918. 1919. 1920. 1921. 1922. 1923. 1924. 1925. 1926. 1927. 1928. 20, 254 27, 762 24, 071 25, 448 27, 238 31,674 48, 294 34, 051 35, 972 36, 373 30, 557 30. 636 36, 137 36, 196 45, 953 41,615 38, 590 35, 549 33, 977 35, 519 29, 177 36, 080 34, 088 35, 993 49, 873 68, 338 60, 651 58, 407 48, 106 50, 174 58, 232 58, 656 64, 097 73. 637 61,367 58, 155 34, 373 35, 829 43, 228 34,040 24, 757 26, 485 36, 906 29. 969 29, 719 30, 248 27, 195 21,443 17, 852 18, 323 15, 368 21, 832 32, 744 25, 790 19, 729 18, 186 15,688 11,450 10,968 7,629 6, 574 3,487 4, 723 3, 858 5,409 5, 006 4,443 2,793 3,153 4,582 1,987 1,147 33. 865 45, 608 41,578 30, 167 30, 978 32, 482 33, 291 33, 043 28, 930 38, 395 40, 339 47, 509 65, 897 61,195 41,815 47, 418 42, 401 49, 227 55, 711 63, 225 53, 436 57, 599 57,813 60, 371 53, 395 66,602 82, 561 75, 235 67, 397 70, 065 73,718 79, 897 91,861 93, 983 128, 543 155, 322 37 15 6 46 2 4 532 423 400 463 641 425 340 464 323 237 155 131 184 160 68 155 45 15 131 44 5 25 77 50 8 19, 754 23, 305 15,176 10, 526 14, 679 17, 502 16, 657 11,445 11,121 14, 264 14, 769 21,887 22, 781 13, 027 19,580 20, 434 13,163 19, 759 18, 097 15, 289 13, 740 12, 531 14, 589 13, 029 7,839 5, 246 4,300 4,666 4,494 5,341 6,315 7,263 5,789 5,482 5, 845 8,411 238 39 165 18 18 19 53 78 148 134 78 237 457 260 214 122 113 189 355 270 345 222 301 143 75 35 40 55 42 33 22 22 17 23 17 11 3,453 2,175 2, 356 1,908 1,891 4,464 7, 343 5,278 7,345 12, 580 11,290 10, 521 20, 409 8, 522 20, 428 12, 429 12, 502 18, 808 14, 747 14,359 15,031 12, 243 12, 961 15, 502 14. 467 26, 507 18, 696 8,539 6, 893 5,048 4, 766 5,067 5,243 6,705 7, 652 8, 032 161 6 122 255 29 144 41 98 16 154 637 1,646 988 776 1,090 1,381 816 879 307 236 211 235 101 40 53 56 22 52 49 39 18 47 34 11 9 Note.— -Prior to 1916, Portland landings are lacking. 74 INDUSTRIAL STRUCTUJJK OF NEW ENGLAND Species of Fish Landed by Wishing Vessels at Boston, Gloucester, Portland, 1893 to 1928— Continued "\ ear Cusk Halibut Mackerel Flounders Fresh Salted Fresh Salted Fresh Salted Fresh 1893. 9,110 10, 454 5,566 3,322 3,049 4,918 3,411 2,018 2,029 1,785 2,881 5,414 8,797 5,101 7,027 5,067 3,148 4,504 6,433 6, 317 5,816 5,747 6,236 6,017 3,525 2,644 2,025 1,849 2,060 2,194 2,911 3,344 3,606 2,694 2,693 2,350 174 191 255 305 144 107 228 131 52 21 78 236 231 230 72 141 185 191 248 163 144 112 95 52 24 14 38 6 38 54 87 62 107 34 34 7 7,964 9,378 8,660 9,689 8,329 8,381 8,236 7,275 5,065 6,326 3,622 2,437 2,952 4,019 3,293 3,179 3,589 2,988 3, 091 3,060 4,756 3,063 3,584 3, 364 1,724 1,770 2,100 3,768 5,618 5,608 4,873 4,422 3,553 3,426 4,773 3,382 1,829 1,527 1,062 1,207 1, 572 1,997 789 1,569 463 753 832 853 515 636 904 947 860 1, 036 411 481 532 317 286 95 42 11 15 22 48 16 2 1 8 5 6 4 552 936 553 1,136 1,146 874 1,230 8,889 2,783 2,772 2,040 2,182 3,499 1,740 4,091 5,508 4,121 583 3,099 2,660 4,293 3,980 7, 345 10, 832 12, 032 7,583 4,315 6,284 2,735 4,266 10, 684 8,474 24,115 35, 123 31, 354 24, 165 8,744 7,077 4, 033 10, 484 1,784 2,222 3,862 15, 966 12,013 8,139 8,032 5,184 5,645 2,100 6,386 3,467 3,458 610 1,439 1,548 1,383 2,708 3,574 5,075 5,410 2, 576 1,398 1,008 650 460 881 1,283 2,095 1,109 176 88 1894 1895 1896 --- -.- 1897 1898 . 1899 1900 1901 1902 1903 1904 -.- --- 1905 -. --- 1906 - -- 1907 1908 -- 1909 1910 - 1911 1912 - 1913 400 1914 _ . _- 863 1915 . - 652 1916 .. 1,298 1,280 1918 2,270 1919 - - 2,452 1920 3,638 1921 - - 2,605 1922 3,281 1923 . 3,437 1924 4,335 1925 6,638 1926 -- 6,779 1927 8,359 1928 10,414 Year Herring Swordfish Other Total Fresh Salted Fresh Salted Fresh Salted Fresh Salted 1893 1,045 285 1,717 1,549 8,354 1,448 2,730 5,184 1,475 2,091 2,847 117 172 517 2,142 880 1,059 592 1,807 3,297 2,875 3,059 3,222 5,732 3,858 2, 265 1,702 1,348 49] 2, 178 66] . 873 1,016 710 1,591 1,816 837 99 1,869 620 2,926 392 91 7,276 2,157 1,395 1,790 95, 996 121, 119 99, 677 83, 745 95,664 107, 881 127, 274 107, 183 96, 439 117, 223 111,442 125, 771 169, 535 136, 518 151, 775 144, 596 124, 631 138, 043 144, 864 151,421 133, 970 141,575 147, 075 165, 321 156,783 193, 024 180, 543 170, 167 144, 259 152, 189 168,216 175,821 200,017 232, 247 257, 158 275, 297 46,400 45, 996 1894 799 1,224 417 1895 50, 762 1896 46, 929 1897 31, 201 1898 6,138 6,082 4,244 7,412 35, 523 49, 500 1899 1900 55, 086 54,726 1901 1,719 2, 637 3,097 2,917 6, 882 5,273 5,402 6,708 4,421 4, 994 6,399 5,885 2, 070 4,910 4, 346 11,410 6,817 8, 764 6, 858 V,,'. )0 J 2, 262 762 264 1,467 1,642 1,266 2, 786 roe 10, 030 10, 023 7,887 16, 270 8, 569 10, 935 15,614 8,629 9,278 14, 720 16, 752 10,005 9, 077 5,839 8,93] 7, 223 6, 322 6, 233 3, 502 3, 097 36] 1,892 1,219 2, 943 2, 400 316 1, 410 I, 111 1902 50, 731 46, 050 45, 395 35, 352 1903 .. 1904 2, 151 2,009 928 2,044 1,358 1,637 1,039 1,503 1,810 2, 376 1,500 2,239 1,773 1,973 1,034 MA 2, 632 1,598 3, 282 2, 455 2, 023 1,527 2,442 2,246 2, 544 3 14 12 33, 884 39, 797 36, 869 48, 471 1906 1909 27 43, 692 40, 288 1911 11 1912 31, 283 28,247 21,014 24,521 L913 5 1914 0) 1 1916 20, 503 1917 18, 647 12, 477 L919 11 9, 938 8, 1 13 L921 1 44 o, 606 7, 685 6,746 7,127 7,852 6,179 1927 6,091 2, 686 1928 than 5oo pom I'noj to L910, Portland landings are lacking. FISHERIES 75 METHODS EMPLOYED Hand-line fishing was the principal method employed in the early days of the ground-fish activity. In this method fishing was done from the deck of the vessel, each man operating a single line carry- ing one or two baited hooks. Hand lines have been largely displaced by trawl lines. The latter consist of ground lines appropriately equipped with gangings carry- ing baited hooks, together with buoys, buoy lines, and anchors. The usual number of hooks to a set varies from 24,000 to 32,000. They are fished from dories. Each vessel carries 12 to 16 dories, which are launched from the vessel after arriving on the fishing banks. Lines are set and hauled from the dory. Sometimes' two sets are made during the daytime, and sometimes overnight sets are made. In any case the fish are returned to the vessel, and when the full cargo is made the vessel proceeds to the landing port. The trawl-line method was for a long time the principal one used in vessel fishery, and it still accounts for a large share of ground fish landed. It is a hazard- ous task to manage the dories, and in bad weather many a dory with its fishermen has failed to return to its schooner. Since 1900 otter-trawl vessels have entered the ground fishing operations. The otter trawl consists of a bag-shaped net which is dragged along the bottom, catching any fish which lie in its path. The mouth of the net is kept open by the kite action of the otter boards, from which the net derives its name. 1 The real start of the trawling business in New England was made in 1906, when the little steam trawler Spray from the Fore Kiver Shipbuilding Co.'s plant at Quincy was put into service. This pioneer boat was followed by others owned by the Bay State Fishing Co. During the war there was a spurt in the use of trawlers and about 60 craft were in commission. With the slump in the industry at the end of the war, many of these vessels were laid up. Since 1920, however, the fleet has been steadily built up again, the recent trend toward the use of trawlers being marked. In 1928 there were 49 otter-trawl steam and motor vessels in operation, landing over 91,000,000 pounds of fish (fresh weight) out of the total of 280,000,000 pounds landed by all vessels at Boston, Gloucester, and Portland. The above, as stated previously, refers to the large steam and motor vessels which operate a net about 120 feet across the mouth. In most recent years an otter trawl about half this size, and termed a " flounder drag " or " drag," has been used in catching flounders. Except for size it is essentially the same net as used by the steam trawlers. Most of the large boats are corporation owned, but many small ones are owned by individual fishermen. The small trawlers are most important in the Nantucket region, where they are used for catching flounders. During fair weather the old-fashioned schooners and dories can operate readily, but in the rougher weather of winter the trawlers take a relatively larger part in the fishing industry. Otter-trawl vessels landed 25.2 per cent of the quantity and 20.7 per 1 For further details of the otter-trawl and line-trawl fisheries consult " Otter Trawl Fishery." by A. B. Alexander, H. F. Moore, and W. C. Kendall. Appendix VI to the Report of tie V. S. Commissioner of Fisheries for 1914. 76 [INDUSTRIAL STRUCTURE OF NEW ENGLAND cent of the value of the total catch landed by fishing vessels at New England ports' in the year 1925. In 1927 there were in the New Eng- land vessel fleet 25 otter trawlers, which landed 77,600,000 pounds, out of a total vessel catch of 264,000,000 pounds. The fishing with otter trawls is necessarily confined to grounds where the bottom is relatively smooth and free from obstructions. This has resulted in the concentration of such fishing on the South Channel grounds and Georges Bank, which are particularly favor- able. In 1928, of the 91,000,000 pounds of fish (fresh weight) caught by steam and motor trawlers, 83,000,000 were taken from these grounds. PRINCIPAL SPECIES Both the methods of fishing and the changes in market conditions have had notable effects in the nature of the catch over a series of Virtually the entire catch originally went into the salt-fish years. FISHING GROUNDS SOUTH CHANNEL GEORGES BANK NANTUCKET SHOALS BROWNS BANK JEFFREYS LEDGE MILLIONS OF POUNDS 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 COD | HADDOCK | 1 ALL OTHER W////// ////////////////////////////////////// /////////// _, . y//) //;}/// y ///};//);;/)/;/)/// /Vs /■/■/■/ r? t ~':j '///< - '/.// ' ' ' : //// ZZ^/ my///, EH i \ 1 OFF CHATHAM rm MIDDLE BANK B PLATTS BANK i CASHES BANK 1 CLARKS BANK ] FIPPINIESBANK TILLIES BANK SHORE |.~ NoTE-.Weight of salted fi'sh landed /jqs been converted ,to the equivalent of fresh fish its landed. fill!!!! P24Z 01-46 Figure 4. — Relative productiveness of various fishing: areas and principal species of catch trade, the most of the catch being salted aboard the vessels and landed at Gloucester. Cod was the species most sought, and, with the exception of halibut, the others were considered purely incidental. With increased facilities for transportation and refrigeration, the fresh-fish trade grew at the expense of salt-fish trade. This placed a premium on fish from shorter trips made to near-by grounds. In the days of salt fish much of the catch came from grounds as far as Grand Bank, a thousand miles distant from port. Now, most of the catch comes from near-by grounds. With the development of the fresh-fish trade, species other than <-o(\ have been utilized extensively. The landings of haddock illus- trate the point most strikingly. The advent or otter-trawl fishing in South Channel and on Georges Bank, where haddock appear to be most abundant, gave rise to the increased importance of this species. Recently the catch of haddock has been further stimulated by the trade in packaged fish, which utilizes this species to a much greater extent than any other. FISHERIES 77 Landings of Fish by Fishinc Vessels at Principal New England Ports, L893 1928 [In thousands of pounds] Year L893 1894_ 1897. 1898 1899 1900. 1901. 1902. 1903. 1904. 1905. 1906. 1907. 1908. 1909. 1910. 1911. 1912. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. 1921- 1922. 1923. 1924- 1925. 1926. 1927. Boston Fresh Salted 66, 518 1,077 86, 129 1,336 73, 612 196 61, 820 1,256 62,704 200 53, 494 1,186 63, 450 1,274 63,648 3,173 56, 855 2,137 77, 609 1,365 78, 383 1,883 81, 183 911 101, 085 222 89, 610 83 87, 717 394 94, 713 947 92, 085 491 102, 059 31 93, 629 131 100, 157 143 92,203 149 92, 231 113 97, 397 502 98, 255 76 98, 155 496 109, 227 249 103, 209 183 118,302 257 104, 277 91 106, 032 158 123, 982 253 130, 631 335 148, 723 315 167, 061 257 194, 877 64 218, 353 34 Gloucester Fresh Salted 29, 479 34, 990 26, 065 21, 925 32, 960 54, 387 63, 824 43, 536 39, 584 39, 615 33, 059 44, 588 68, 451 46, 907 64, 057 49, 883 32, 546 35, 983 51,236 51,264 41, 768 49, 344 49, 678 46, 515 40, 062 62, 002 61, 622 39, 113 26, 747 30, 396 29,012 29, 263 42, 161 49, 222 46, 056 39, 407 46, 323 14, 662 50, 567 45, 673 31, 002 34, 337 48, 226 51,862 52, 589 49, 366 44, 167 44, 484 35, 131 33, 801 39, 403 35, 923 47, 980 43, 661 40, 158 31, 140 28, 098 20, 901 24, 018 20, 165 18, 073 12, 173 9,749 7,627 6,270 7, 356 6,018 6,583 7,311 5,679 6,497 2,497 Fort land Fresh Salted 0) 1 0) C 1 ) ( J ) to to 0) ( J ) 0) 0) 0) 0) to to to 0) to to 0) 0) 0) 20, 551 18, 566 21, 795 21, 713 12, 752 13, 235 15, 762 15, 221 15, 927 18, 133 15, 964 16, 226 17, 536 0) 0) to to to 0) to to 0) 0) to 0) to to to to to to 0) to 261 79 55 6 229 246 172 475 209 226 244 131 154 Total Fresh Salted 95, 996 121,119 99, (177 83, 745 95, 664 107, 880 127,274 107, 183 96, 439 117,223 111,442 125, 771 169, 535 136, 517 151, 775 144, 596 124, 631 138, 043 144, 865 151, 421 133, 970 141, 575 147, 075 165, 321 156, 783 193, 024 186, 544 170, 167 144, 258 152, 190 168, 216 175,822 209, 017 232, 247 257, 158 275, 297 46,400 45, 998 50, 763 46, 929 31,201 35, 523 49, 500 55, 036 51, 726 50,731 46, 050 45, 395 35, 352 33, 884 39, 797 36, 869 48, 471 43, 692 40, 289 31, 283 28, 247 21,014 24, 520 20, 503 18, 647 12, 477 9,938 8, 111 6,607 7,686 6,746 7,127 7,852 6, 180 6,691 2,685 1 Statistics for Portland not available prior to 1916. Source: IT. S. Bureau of Fisheries. TREND OF GROUND FISH PRODUCTION The trend in the production of various species of ground fish may be seen from the following table and that on page 73. During the past 40 years the production of cod has had a slight downward trend, but haddock increased from about 43,000,000 pounds to nearly 94,000,000 pounds by 1924. By 1928 the landings of the three ports amounted to 155,000,000 pounds. Flounders increased from the rela- tively unimportant catch of 3,000,000 pounds to a place of importance, with nearly 31,000,000 pounds. Landings of hake and pollock in- creased during the first half of the period, but have since decreased. The causes are problematic, but may possibly be found in the chang- ing composition of the catch in consequence of the employment of otter trawls. They may, however, be the result of natural fluctuations in abundance, or the effect of depletion in recent years. 78 [INDUSTRIAL STRUCTURE OF \K\V ENGLAND Catch of Principal Species of Ground Fish in New England [In thousands of pounds] Year Cod Haddock Hake Pollock Halibut Flounders Total 1889 97, 146 89, 208 88, 255 75, 065 95, 284 84,918 89, 218 43, 474 45, 676 47, 077 76, 617 59, 544 89, 406 93, 519 14, 816 37, 184 33, 183 35, 471 34, 121 20, 222 18, 499 8,442 9,445 17,744 28, 949 29, 244 25,010 8,295 10,741 10,828 12,366 3,018 4, 354 1,960 4,501 2,951 4,109 4, H0U 5, 761 9, 753 15, .541 30, 855 177, 570 1898 . 196, 150 1902 203, 434 1905. 224,881 1908 232; 300 1919 237, 057 1924 244, 887 Source: U. S. Bureau of Fisheries. The case of halibut is undoubtedly one of depletion. The landings in 1889 were nearly 11,000,000 pounds, and in earlier years they were undoubtedly larger. In 1924, however, they had dropped to 4,500,- 000 pounds. Unless measures are taken to conserve this species we can not expect the catch to increase materially. On the other hand, if the demand causes greater intensity of fishing for this species, in all probability the supply will become further depleted, and eventually the catch will disappear. Of the 6 principal kinds of ground fish 2 have decreased and 2 have increased. The increases have more than offset the decreases, resulting in a total increase. Whether this general increase of ground fish can continue is a question of great interest and importance. It is seen that most of the increase has come in two species — haddock and flounders. Both of these are taken in fairly restricted regions. Reference to Figure 4, showing the relative catch of haddock on various fishing grounds, indicates strikingly the concentration of this species on South Chan- nel and Georges Bank fishing grounds. Unless other grounds are developed, and this seems unlikely, we can not look forward to con- tinuing expansion at the same rate as indicated up to this time. The matter of expansion in the flounder fishery is quite similar. On the other hand, there is reason to believe that the fishery for cod has decreased as a result of economic rather than natural causes. The United States takes only 12 per cent of the total catch of cod in this region. The remainder is taken by the fishermen of Newfound- land, Canada, France, and Portugal. The total catch by all nations has averaged above a billion pounds annually and has shown no tendency to decrease during the past 40 years. 2 It is believed that because of the natural advantages enjoyed by the fishermen of New England the American catch could be increased considerably, pro- vided a sufficient demand existed. This, in addition to potential supplies of other ground fish, makes it seem possible that the catch of ground fish may continue to increase substantially before reach- ing the limits' of this resource. MACKEREL Next in importance to the ground-fish activities, and equally im- portant in the history of New England, is the mackerel fishery. ■ "Statistics of the Catch of Cod off tie Eastern ('oast of North America to 1026." byO. K. Sette, Bureau of Blsheriea Documenl L033; Appendix VIII, Report ot U. S. Com- beries, H*27 ; Bureau of Fisheries Documenl No. 1034. FISHERIES 79 Originally this was prosecuted by means of hand lines from the decks of mackerel vessels. This method has long since been dis- placed by purse seining. The purse seine is a curtain-shaped net about 250 fathoms long and 20 fathoms deep, which is laid around the school of fish. The bottom is then closed by drawing the purse line. Purse seining is done by the larger vessels of the fishing fleet. Most of these have their home port at Gloucester, from where they sail in search of mackerel, as far south as Cape Hatter as and as far north as the Gulf of St. Lawrence. The catches are landed at Cape May on the New Jersey coast, at New York City, and at New Eng- land ports, depending on the locality in which the mackerel are taken. Of somewhat lesser importance is the drift gill-net fishery for mackerel, although it is by no means negligible. This is pursued, as a rule, by somewhat smaller vessels than the purse seiners. The netters set their curtain-shaped nets in the evening some 3 miles along the surface. They haul them in in the morning and remove the mackerel which have been entangled in the nets. Practically the same localities are fished and the same ports of landing are used as in the case of the purse-seine fishery. Additional quantities of mackerel are caught in the shore gear, such as pound nets, but by far the larger part of the catch is taken by the purse seines and the gill nets. The mackerel fishery more than any other fishery of New England is characterized by great fluctuations from year' to year. There have been periods of abundance followed by years when mackerel were so scarce as to be almost negligible. When this fish is abundant it forms a very important contribution to the New England fish produc- tion. Reference to the table on page 74 will give an idea of the wide fluctuations to which this fishery is subject. In the years prior to 1885 the catch of mackerel was many times larger than it has been in any year since. Recent studies by the Bureau of Fisheries have indicated that the principal cause of fluc- tuations in the mackerel fishery is the uncertainty of reproduction in various years. In some years the spawning season is good and a great many young mackerel survive to augment the stocks, while successive years may result in virtually no offspring. The relatively large catches of 1925, 1926, 1927, and 1928, were largely the result of a good crop of mackerel from one spawning season, presumably that of 1923. There seems no reason to believe that, given a succes- sion of good spawning years, the fishery might not attain the im- portance enjoyed by it in 1885 and prior years. The fact remains, however, that the mackerel fishery is likely to continue to fluctuate widely in its annual catch, and therefore can not be a mainstay to the same extent as the ground-fish fisheries. SWORDFISH The only other vessel fishery of importance to be considered is that for swordfish. This can hardly be regarded as a distinct fishery. The swordfish is harpooned from a pulpit extending over the bow of fishing vessels. In season some vessels are outfitted exclusively for swordfish, but a large portion of the catch is made by vessels engaged 80 INDUSTRIAL STRUCTURE OF NEW ENGLAND primarily in other fisheries. Swordfish make a more important con- tribution to the fish production than appears from the quantity caught, because of the high price this species brings in the market. In 1927 fishermen received an average of 23 cents a pound for sword- fish, as compared with 3 cents for haddock. As in the mackerel fishery, the results of the swordfish catch vary widely from year to year, but, on the whole, are somewhat more stable than in the mack- erel catch. Whether the swordfish fishery may be developed beyond, its present importance can only be conjectured. Judging from the zeal with which this fishery is prosecuted, it is unlikely that the catch can develop beyond its present status. HERRING The herring fishery is of greatest importance as a source of material for sardine canning along the coast of Maine. Only the young of the herring are used for this purpose. They are caught in brush weirs which are constructed on the shoals in the bays and inlets along the broken coast of Maine and the neighboring shores of the Maritime Provinces of Canada. They are concentrated par- ticularly in the Passamaquoddy Bay region, though weirs are fished as far w T est as Portland. The weir consists of a brush fence which leads the young herring into a brush inclosure, from which they find difficulty in getting out. They are removed from the inclosure with seines and are delivered to the canneries. A large portion of the raw material for the Maine canneries — perhaps 75 per cent — is collected by their vessels from weirs on the Canadian side of the bay. No reliable statistics are available on total quantity of fish caught in the weirs, both American and Cana- dian, but the production of canned sardines in Maine gives an idea of the quantities used by the canneries. (See p. 89.) In addition to the young or sardine herring, some quantities of large, mature her- ring are caught in gill nets, pound nets, and seines. These are sold either fresh or salted, or for bait. By treaty provisions American fishermen may visit certain portions of the south and west coasts of Newfoundland, where herring fishing is carried on. In 1927 the vessels engaged in the herring fishery there landed cargoes of herring at Gloucester aggregating 2,106,846 pounds (fresh weight). It is estimated that during the season approximately 1,500 craft of various sizes and types are engaged in moving the herring to the canneries. The season extends from April to November, with a lull from the middle of June until August. Most of these craft are gaso- line motor boats, many of which are engaged in clam gathering. Lobster and scallop fishing, and trawing during the idle time in the sardine industry, although a large number of the vessels are put up lor the winter. The boats are owned both by canners and by fishermen. There is a considerable investment in the canneries. Some of the Larger factories are valued at about $200,000, and many of the older oik- are valued at $60,000 to $75,000. The pads in 1925 in Maine and Massachusetts was 1,778,860 cases. This amount would require about 100,000,000 pounds of fresh her- ring. Iu 1927 only 1,262,124 eases were packed, valued at $5,2 19,030. Fully one-third OI the pack is put up in keyless or pressed-tin cans. PISH I in 81 most of the rest being packed in keyed or roll-top cans. Cottonseed oil is used for packing the greater part of the output, but the fancy packs use olive oil, and a few canners use tomato sauce. About one- fifth of the pack is put up in mustard. LOBSTERS Lobster fishing is carried on along all coasts of New England, but Maine produces over half of the total catch. This amounts to about 9.700,000 pounds annually, with a value to the fishermen of about $3,000,000. Lobsters are caught in baited traps called lobster pots. These pots are very much like lath crates with a funnel-shaped en- trance, through which the lobster readily enters but finds difficulty in escaping. This type of operation is a small-boat fishery, the pots being anchored to the bottom on the ledges and reefs along the coast, and visited every few days for removal of the lobsters and for re- baiting. The following table shows the number of pots used and the catch in 1924, and in the previous years for which statistics are available. Lobster Fishery of New England Year Lobster pots fished Total catch Average catch per pot Quantity Value Quantity Value 1924 256, 662 239, 558 i 176,365 190, 364 212, 690 205, 049 175, 458 Pounds 9, 716, 196 10, 666, 707 14, 735, 000 11, 524, 499 14, 756, 495 14, 661, 808 30, 449, 603 $3, 072, 411 2, 550, 980 1, 857, 000 1, 319, 107 1, 336, 572 1, 276, 967 833, 736 Pounds 38 45 $11. 97 1919 10.65 1908 1905 61 69 72 6.93 1902 6.28 1898 6.23 1889 1 Includes eel pots. Source: U. S. Bureau of Fisheries. A decline from 30,000,000 to less than 10,000,000 pounds since 1889 is the most striking thing to be observed from the table. This decline has occurred in spite of the greater number of pots in use. This fact is brought out more forcibly by the figures on the average yield per pot, which shows a decline from 72 to 38 pounds since 1898. The price has increased more than the decline in quantities. The value of the catch per pot in 1924 was nearly twice as great as in 1898. All these observations — the decreased total catch in spite of increased gear, the decreased catch per pot, and the strong increase in prices — point indisputably to depletion. This decline has long been recognized, and attempts to regulate the fishery have been made by the States, but these efforts have been partially nullified by the lack of uniform size limits in the various States. The general inadequacy of the regulations has permitted de- pletion to continue. Thus, it seems that a continued decline in the volume of the lobster catch is probable, and when this reaches such a low point that it can not be offset by increased prices, the income of fishermen may be seriously impaired. 82 INDUSTRIAL STRUCTURE OF NEW ENGLAND Canned lobster first assumed commercial importance in 1842, with the establishment of a lobster cannery in Maine. There was no regu- lation of the industry until 1879, and, meanwhile, through the de- struction of young lobsters and females with eggs, the supply de- creased very greatly. Since 1884 all the New England States have passed laws against the taking of small lobsters and the destruction of the females carrying eggs. Massachusetts even seizes supplies of imported lobsters that are below the legal size limit and distributes them on favorable growing locations along the coast. For a time the canning industry was stopped for a part or even all the year, but the supply continued to decrease. Eecently, with measures to protect the oncoming natural supply and with the introduction of artificial propagation, the industry has been recovering. There are estimated to be approximately 4,000 men engaged in lobster fishing in Maine and 500 in Massachusetts. Many lobsters are brought in also from Nova Scotia. In 1924 Portland received 1,250,000 pounds of live lobsters from the waters of Maine and Nova Scotia. In 1925 the Massachusetts lobster fisheries took 1,573,000 pounds. Maine formerly did a fairly extensive" business in canning lobsters, which came from Canadian waters. In late years no lobsters have been canned in New England. OYSTERS Oysters were introduced into New England from Chesapeake Bay about 1840. This industry is restricted mostly to waters south of Cape Cod. Northward the temperatures are for the most part too low for oyster culture. This practically limits the activity to the shallow waters of Connecticut, Rhode Island, and the southern shore of Massachusetts. The oyster, more than any other marine animal, lends itself to farming operations. Shells, or culteh, are spread on the bottom at the spawning season, and the minute young oysters settle on the culteh, where they find suitable surface for attachment. These are later fished up as spat, or seed oysters, and distributed on the growing bottoms. After a suitable growing period the oysters are again fished up and marketed. The farming or cultural operations are virtually a necessity in New England waters because of the limited extent of suitable spawning grounds. By making the maximum use of these for the production of spat, a much larger area of growing grounds may be seeded and thus converted from barrenness to a productive condition. The oyster bottoms are leased by the States to private parties for the purpose of oyster farming and are then known as private grounds. The next table shows the productivity of New England oyster fisheries. Virtually all the market oysters are produced on private grounds, only 3,000 of the 1,039,000 bushels of oysters having come from public grounds in 1924. The production of seed oysters exceeds thai of market oysters. Large quantities of these are sold and are planted in waters outside the New England States. With the adop- tion of improvements in the technique of oyster farming developed by the Bureau of Fisheries, it is probable that oyster farming in New England can be greatly expanded. Within recent years pollution of the waters along the Sound from factories and from domestic sewage has had a serious effect upon oyster production. Fisn ki; Iks Oyster Production 01 New England in L924 83 Product Massachusetts Rhode Island Connect uiil, Total Quantity Value Quantity Value Quantity Value Quantity Value Market oysters: Public Bushels Bushels 500 368, 598 $750 457, 614 Bushels 2, (530 591, 488 $3, 865 683,034 Bushels 3, 130 1, 035, 979 / $4, 615 Private 75, 893 $267,811 1,408,459 Total 75, 893 267,811 369, 098 458, 364 594,118 686, 899 1, 039, 109 1,413,074 Seed oysters: Public 6,800 17,000 5, 325 12, 450 54, 850 496, 788 55, 933 583, 224 61, 650 513, 788 61,258 Private 595, 674 Total 23,800 17, 775 551, 638 639, 157 575, 438 656, 932 Grand total 99, 693 285, 586 369, 098 458, 364 1, 145, 756 1,326,056 1,614,547 2, 070, 006 Source: U. S. Bureau of Fisheries. CLAMS Clam fishing is carried on in all the coastal New England States, but is most important in Maine and Massachusetts. Many clams are canned in Maine, but elsewhere they go largely into the fresh market. Two kinds are principally taken — the quahog, or hard clam, and the soft clam. Of the total catch, approximately three-fourths are soft clams. Examination of records covering the past 45 years shows that the yield of soft clams has declined from 11,500,000 to 6,300,000 pounds, and that of hard clams has increased from 500,000 to 1,700,000 pounds. It appears that the soft clams have been somewhat depleted, and the hard clams have been utilized as a substitute to a limited extent. A serious difficulty confronting the clam industry is the pollution of beds near cities and the consequent closure of these areas to clamming. Such measures in the interest of public health have operated to decrease the production of clams. If means were found to protect such beds from pollution, thus opening them to clamming, the yield might be considerably increased. Yield of Clams in New England in 1924 State Soft clams Hard clams (qua- hogs) Total Quantity Value Quantity Value Quantity Value Maine Bushels 357, 634 3, 600 252, 035 8,240 4,435 $228, 251 3,600 297, 763 15, 480 12, 155 Bushels 120 $80 Bushels 357, 754 3,600 404, 756 62, 290 7,389 $228, 331 New Hampshire 3, 600 Massachusetts 152, 721 54, 050 2,954 359, 889 134,500 10, 773 657, 652 Rhode Island . . 149, 980 Connecticut ._ 22, 928 Total 625, 944 557, 249 209, 845 505, 242 835, 789 1, 062, 491 Source: U. S. Bureau of Fisheries. MISCELLANEOUS SHORE FISHERIES In addition to herring, lobster, and oyster fishing there are other extensive fisheries along the entire New England coast operating pound nets, gill nets, seines, lines, and other apparatus. The catch 84 INDUSTRIAL STRUCTURE OF NEW ENGLAND includes many of the fish mentioned in connection with the vessel fisheries, and, in addition, such fish as alewives, shad, smelt, whiting, squeteague or sea trout, butterfish, scup, bluefish, and many others are taken. The catch of such species in 1924 aggregated about 15,000,000 pounds. SUMMARY OF NEW ENGLAND FISHING ACTIVITIES In the following table the statistics of New England fisheries as of 1924 have been summarized. It may be seen that 777 vessels of 5 tons net and over were engaged in fishing or in transporting fish from the catching grounds to the landing ports; that over 10,000 boats were engaged in fishing; and that the catch of about 407,000,000 pounds was valued to the fishermen at $19,000,000. Over 44 different kinds of fish are included in the total, but the 23 kinds enumerated separately in the table made up 97 per cent of the catch and are the only ones of any great importance. Extent of Fishing Operations, and Catch of Principal Species in New England States in 1924 Item Maine New Hampshire Massachu- setts Rhode Island Connecti- cut Total Fishing and transporting 230 4,673 6,252 $4, 136, 989 3 72 134 $56, 029 333 3,388 7,123 $10, 799, 598 81 993 1,176 $1, 818, 858 130 896 1,298 $2, 006, 658 777 Boats 10, 022 Fishermen * 15, 983 Value of products $18, 818, 132 Thousands of pounds Catch of principal species: Alewives . . _ 1,095 12 21,410 1,568 157 343 15, 508 11,721 141 47, 930 2, 293 1 2,777 2,444 378 65, 815 2,658 414 22, 996 77, 684 6,712 4,360 11, 799 21, 676 522 5, 349 158 172 38 1,733 6,307 1,680 1,751 3,765 698 698 3,557 376 685 1,357 110 6 539 4,025 1,081 89, 219 Butterfish Cod 98 1 6 Cusk 4,227 Eels 168 3,099 134 38 112 4,416 49 3 857 Flounders ... 30, 854 Haddock . _ _ 144 25 93, 519 Hake 18, 499 Halibut . . 4,501 Herring 507 2, 381 1,743 116 1,192 11 8 200 1,744 1,696 50 515 2,584 271 1,654 60, 236 Mackerel. 304 5, 270 48 2 89 11 80 2 702 10 68 8,020 2 5,926 26, 654 Menhaden ._ _. 7, 536 Pollock 4 8,294 Scup 1,352 Shad 244 628 863 70 5,513 171 3,577 516 Smelt 4 689 Sword fish 2,882 Whiting 8,123 Lobsters. - 126 4 36 9,717 Crab: 1,986 ("hiins 7,961 Oysters 11,302 Scallops 296 388 1,267 All other 11, 525 Total 116,706 448 243, 364 20, 535 25, 769 406, 822 ' Including shoremen and transporters directly connected with fisheries. Source: U.8. Bureau of Fisheries. FISHERIES 85 It has been pointed out that some of the important species of fish and shellfish have been yielding diminishing quantities of product, and others have responded to increased demand with larger yields In the following table are shown the total net results of these and other changes. Operations and Catch of New England Fisheries, 1888-1924 • Fishermen Fishing vessels Fishing boats Catch Year Thousands of pounds Value in thousands of dollars 1888__. 26, 959 22, 367 24, 031 21, 770 17, 847 15, 285 1,543 1,427 1,479 1,620 978 777 11,418 10, 557 11,405 12, 627 10,364 10, 022 572, 908 393, 458 534, 075 530, 029 467, 340 406, 822 9, 860 9,682 12, 406 15 139 1898 1902. - r 1908__. 1919 19, 839 18, 818 1924. ..- Source: U. S. Bureau of Fisheries. The significant trends brought out by these figures are (1) the distinct decrease in number of fishermen; (2) an equally distinct decrease in number of vessels; (3) a relatively slight decrease in number of boats; (4) a decrease in the total catch; and (5) a very marked increase in the value of the catch. From this it would appear that in spite of decreased man power and a numerically smaller fishing fleet the catch is being maintained at a fairly hori- zontal level, apparently because of increased efficiency of the per- sonnel and apparatus of fishing. Furthermore, while the size of the catch has remained virtually the same its value has almost doubled. General price changes account for practically all the gen- eral increase in the value of the New England fish catch. As might be expected, it is found that the return per fisherman has increased at a distinctly greater rate than have general prices. In summary, it appears that the New England fisheries have prac- tically reached the point where increased production of certain species is offset by decreased production of others, thus establishing a vir- tually horizontal level. The increased efficiency of operations, how- ever, has permitted an upward trend in the real value of products per person engaged. Barring excessive depletion, there seems reason to believe that the return per man can continue to increase at a rate in excess of average prices, thus constituting a real gain to the industry. WHOLESALE FISH TRADE The wholesale trade consists of buying and selling fishery products, preparing fish into fillets, steaks, and pan-dressed products for the package trade, shucking oysters, and impounding lobsters. The wholesale fish trade of New England in 1924 was carried on by 200 establishments, which employed 1,922 persons, who received $2,157,537 in salaries and wages. The volume of this business conducted in the various States is shown in the following table. 61232°— 30 — -7 80 INDUSTRIAL STRUCTUBB OF NEW ENGLAND Wholesale Fish Trade of Individual New England States in 1924 State Establish- ments Persons engaged Wages and salaries Maine, _ _ 54 1 103 25 17 } 271 1,077 217 357 New Hampshire $188, 020 Massachusetts. . 1, 566, 654 Rhode Island.. .. 173,604 Connecticut . 228, 659 Total 200 1,922 2, 157, 537 Source: U. S. Bureau of Fisheries. FRESH AND FROZEN FISH Boston and Gloucester, Mass., and Portland, Me., named in order of their importance, are the main points wh$re the wholesale trade in fresh and frozen fish is carried on. Wholesale dealers are also located at Provincetown, Nantucket, and New Bedford, Mass.; New- port, R. I. ; and New London, Conn. In addition, one or more whole- sale dealers are usually located in practically every seacoast town suitable for the safe harboring of vessels. At Boston is located the famous Fish Pier, which is considered the most modern pier in the United States for the accommodation of fishing vessels and the fresh and frozen fish trade. The pier, con- structed of brick, stone, and concrete, is 1,200 feet long and 300 feet wide. The majority of the wholesale fish dealers in Boston are lo- cated there, as well as the Boston Fish Exchange and a cold-storage plant for fishery products. Shares of boats and vessels unloaded at the pier are sold through this exchange in much the same manner as stock is traded on the New York Stock Exchange. During 1928 some 218,000,000 pounds of fresh and salt fishery products valued at nearly $9,000,000 passed through the exchange. While the Fish Pier is the most modern of its kind, it leaves much to be desired in the way of efficient handling and conveying of the products from vessels to the establishments on the pier. Fish are unloaded from the vessels to the dock, largely by hand, in a slow and laborious fashion, consuming much more time than is proper in handling such a perishable product. From the dock's edge the fish are carted by hand to the various buying houses. When originally occupied in 1915, the annual landings were 100,000,000 pounds ; now twice as much must be handled with the same facilities, resulting in serious congestion. The problem of devising and installing auto- matic unloading and conveying equipment is imminent and must be solved in the near future. Gloucester, although having no central fish pier, ranks second in importance as a fish port. This port is the center of the salt-fish industry, which formerly was much more important than at present. In Late years, because of the increased demand of the consumer trade for fresh or frozen fish, the handling of Fresh fish and the canning of fishery products comprise a large proportion of the business of this port. " During L928 nearly 42,000,000 pounds of fresh and salted fish- ery products, valued at nearly $1,500,000, were landed by fishing ves- sels at Gloucester. FISHERIES S7 Portland, the third port in importance, has shown considerable revival, largely because of improved facilities for the distribution of fishery products. During 192S about 18,000,000 pounds of fresh and salted fishery products, valued at nearly $600,000, were landed at Portland. A radical departure in the method of merchandising fresh and frozen fish during recent years has given the fish business an impetus which promises to revolutionize the trade. This new method con- sists of placing the edible portion of the fish in unit packages of suit- able size for retail distribution. Fish packed in this manner are known as package fish. Package fish are prepared at points of pro- duction, and are packed in containers and shipped in various types of cases, with or without the use of ice, depending upon the character of the product and the method of shipping. As a result many establishments that in former years bought and sold only fresh or frozen fish have now taken on the aspect of cut- ting and packing concerns. The majority of these fish cutting and packing plants are located in Boston, Gloucester, and Portland. They are not confined, however, to the larger cities, and some firms desiring to be near points of production have opened large plants in smaller fishing towns, such as Provincetown, Mass., and Groton, Conn. The capital required in erecting plants of this design is many times that necessary for carrying on a buying and selling organiza- tion, and the number of employees required is also much larger. While no accurate statistics are available on this trade, it is interest- ing to note that it began in 1921, in a small way, at Boston, and in 1928 there were 51 firms engaged in the trade in the New England States. Although many of these were previously wholesale dealers, a considerable number of the firms are new to this field, an indication that capital from other sources is entering the fish industry. The combined production of package fish in the New England States and New York amounted to 61,913,000 pounds in 1928, valued at $9,262,000, which is 95 per cent of the production in the United States. By far the larger part of this production was of fillets. Among the species, packaged haddock made up 92 per cent of the total amount. That New England plays an important role in supplying the Nation with fresh and frozen fish was revealed by a study of the distribution by wholesale fish dealers at Boston during September, 1922. Boston dealers in that month distributed more than 12,000,- 000 pounds of fishery products to points in 35 States, the District of Columbia, and Canada. Of the quantity distributed during that month Massachusetts consumed 56 per cent; New York, 19 per cent; Pennsylvania and Rhode Island, 5 per cent each; Connecticut, 4 per cent; New Hampshire, 2 per cent; Illinois, Maryland, Canada, and Maine, 1 per cent each ; and the remainder went to points in 26 States. While no later comprehensive data are available pertain- ing to the distribution of fish from Boston, it is believed that during the past few years fish from that port have been given a wider dis- tribution, largely as a result of the merchandising of package fish. 88 INDUSTRIAL STRUCTURE OF NEW ENGI/AND OYSTERS AND LOBSTERS The wholesale trade in oysters includes shucking and marketing. Many of the firms in this business also operate oyster farms and own and operate vessels for the taking of oysters. The product of this region is marketed largely in New England and in the Middle At- lantic States, although quantities are shipped to points in the Middle West. The wholesale trade in lobsters consists of buying, impounding, and selling. Firms handling lobsters do not usually make a prac- tice of handling fish or other fishery products. They obtain lobsters in times of plenty and impound the surplus for marketing in times of scarcity. The pounds, or inclosures where lobsters may be kept alive but confined in the sea for some months, play an important part in the New England lobster industry. The dealers buy when the price is low and draw upon these impounded stocks at will. The pounds are filled twice a year — in September and October for the trade up to about March 20, and again in May and early June for the trade from the middle of July to the 1st of September. This phase of the industry makes an uneven seasonal catch available for the demand at all seasons of the year. For impounding, dealers use large inclosed floats of wooden con- struction which are known as " lobster cars." In impounding lob- sters considerable capital is tied up both in cars and in stocks. Addi- tional labor is also necessary to feed and care for the impounded lobsters. During recent years no lobsters have been canned in the United States, as they are more valuable when sold fresh. Lobsters are marketed largely in New England and throughout the Eastern States, but quantities have been shipped west as far as the Pacific States. Dealers in Portland, Me., ship live lobsters to St. Louis, Kansas City, Portland, Oreg., and even to Florida. Boston dealers ship to a greater number of points, the distribution in September, 1922, covering 27 States. CANNING AND PRESERVING FISH The canning and preserving of fishery products 3 is of considerable importance in the New England States. Their output is about one- fourth of the total for the United States exclusive of Alaska. In 1924 there were 200 establishments, employing 6,600 persons and producing about $14,250,000 worth of goods. Figures for 1928 are available on the quantity and value of canned goods and certain by-products, as shown in the next table. FISH CANNING Of these canning industries the most important is sardine can- ning in Maine. Most of the factories are located in Eastport and vicinity, convenient to the rich young-herring fisheries of the Pas- samaquoddy Bay region. About 75 per cent of the fish used in the vicinity of Eastporl and Lubec are taken in Canadian weirs. As a rule, the fish arc purchased from Canadian fishermen by repre- e Also discussion of canning and preserving in manufacturing section of this report, ]>. 542. I' is 1 1 ki; IKS 89 sentatives of the canneries, arc transported in American-owned boats manned by Americans, and are entered free of duty as the product of American fisheries. The operation of the canneries is seasonal, depending on the runs of fish. In general, there are two periods of abundance — the spring run, which begins late in April and continues until about the middle of June, and the fall run, beginning in August and continuing throughout the fall months. Usually the fall run consists of fatter and more desirable fish and is considered the more important of the two. Scarcity of fish, poorness in quality, or unsatisfactory markets may shorten the season. These factors cause considerable variation from year to year. New England Production of Canned Fishery Products and By-Products in 1928 Product Quantity Value Canned products: 1 Sardines cases _ 2, 055, 763 265, 217 220, 251 15, 893 481, 305 639, 487 5, 778, 286 $8, 076, 546 990, 718 1, 742, 533 774, 833 1, 166, 236 Clams, clam chowder, etc Miscellaneous.. ... do.... ...do By-products: Fish meal, scrap, and waste.. Glue tons.. _. gallons.. Fish oils .. . ..do . 356, 930 185, 577 Miscellaneous 2 pounds.. Total 13, 293, 393 1 The pack of sardines has been converted to the equivalent of quarter-pound cans, 100 to the case; that of clam products, to No. 1 cans, 48 to the case; and that of miscellaneous canned products, to 1-pound cans, 48 to the case. 2 Consists of herring skins and scales, kelp products, isinglass, and oyster-shell products. Source: U. S. Bureau of Fisheries. Canning operations include bringing in the fish; distributing the fish upon grates for drying; steaming and drying; cutting and pack- ing the fish in cans; addition of oils or sauces; sealing the covers; processing; cleanirig; testing; labeling; and boxing. Much of this work is accomplished mechanically, but considerable hand labor is required, particularly in packing the fish in cans. Large numbers of girls and women are employed for the latter operation. The product consists chiefly of low-priced sardines packed in cot- tonseed oil in quarter-pound cans. They are marketed largely in the mining regions and industrial centers, especially among the foreign population of limited means, and mainly through channels where price is of greater moment than quality. The marketing of the product on a price basis rather than a quality basis is probably the chief obstacle to the expansion of the sardine industry. Our imports of higher grade sardines amount to nearly half the annual production in Maine. Since it has been demon- strated that sardines of equal quality can be put up in Maine (a few canneries are now packing such high-grade sardines) there appears to be a great opportunity for development of this phase of the industry. The canning of clams, clam chowders, and other clam products is an industry of some importance in the State of Maine. In some cases the canners of sardines also pack clam products. Many of the 90 INDUSTRIAL STRUCTURE OP NEW ENGLAND clam plants are small, and they are somewhat widely scattered along the coast. In Massachusetts and Maine there are a few establishments which produce a wide variety of canned fishery products derived from the flesh and roe of fish, often mixed with other food products. Some of these specialty items are finnan haddie, fish flakes, fish cakes, haddock chowder, smoked herring, mackerel, and haddock roe. Many of these are sold under special trade names. These products furnish an out- let for portions of fish otherwise wasted, and stabilize the business by absorbing surpluses when the market is glutted. This business has developed rapidly in recent years and promises to continue its increase. Illustrative of the growth in the output of these specialties are the comparative figures of output, as follows : Annual Peodtjction and Value of Canned Fishery Products, 1921-1928 Year Pounds Value Year Pounds Value 1921 3, 184, 017 2, 718, 910 3, 247, 017 6, 689, 084 $632, 044 590, 075 491, 942 1, 219, 687 1925 7, 515, 602 8, 307, 517 8, 932, 189 10, 572, 048 $1, 407, 038 1, 464, 020 1, 543, 184 1922 _ 1926. 1923 _ 1927 1924.. 1928 1, 742, 533 SALTED AND SMOKED FISH The preparation of salted and smoked fishery products is carried on by numerous plants located in Maine and Massachusetts. With the exception of a few in Gloucester, these are relatively small units and the total volume of the business is not large. In former days the salt-fish business was vastly more important, but the development of refrigeration, transportation, and canning methods has to a large degree effected the displacement of salt fish by fresh, frozen, and canned fishery products. The following tables give detailed statistics of salt and smoked fish in New England. Salt-Fish Industry and Products of Maine and Massachusetts in 1924 Item Maine Massachusetts Total Plants _.. 37 451 $338, 288 27 534 $536, 425 $874 64 Person? engaged 985 Wages paid ,713 PRODUCTS Pounds 603, 038 5, 675, 886 611,239 161,976 1,079 1, 143,750 5, 400 4,074,213 32, 330 Value $13, 408 454, 055 122,248 5, 403 162 46, . r )«»7 702 153,606 7r,:, Pounds 53,000 10, 591, 395 2,800 1 478, 556 Value $5,300 1,543,368 375 30, 020 Pounds 656, 038 16, 267, 281 614,039 040, 532 1,079 4, 127,556 5, 400 4, 747, 176 770, 610 2, 129,393 1,442, 168 5,000 75, 297 Value $18, 708 1, 997, 423 Cod ( 'od, boneless 122, 623 35, 423 ' U4: _ ' uk, fiorn-le- 162 Haddock 2, 983, 806 236, 288 282, 885 702 Haddock, \»>w le Hake 672, 963 738, 280 2,129,393 7. r ,«), COS 38, 448 36, 820 192,045 65, 967 192, 054 37,581 Herring ■ -< I __ 192,015 Pollock 682, 500 5, 000 6, 266 27,614 350 508 93, 58] 350 ( od < tn md sounds. 69, 029 5, 502 0,005 13,002,679 825, 403 18,478,890 2,1.54, 139 31,481,569 2, 979, 542 Bureau of E 1 FISH BRIES 91 Smoked-Fish Industry and Pboducts of Maine and Massachusetts i.\ L924 Item Maine Massachusetts Total Plants 47 432 $93, 43!) 17 1S1 $232, 96S 64 Persons engaged 6 1 3 W ages paid $326,404 TRODUCTS A lew i ves ['minds L19, 160 1,113,076 I 111 IK $7, 900 131,391 Pounds 1 'ill ii r • Pounds 119, 160 2,365,317 39, 966 2, 054, 003 49,645 163, 795 1,782,790 3,251,000 58,091 72,000 400, 500 Value $7, 900 240, 427 Finnan haddie 1,252,241 39, 966 1,669,998 $109, 036 7,939 139, 700 Halibut .... 7,939 180, 087 Herring: Bloaters 384, 005 49,645 163, 795 1, 782, 790 40, 387 4,172 14, 690 257, 417 Lengthwise 4,172 Medium scale 14, 690 Boneless 257, 417 Plain or kippered 3, 251, 000 190,610 190, 610 Whole 58, 091 72,000 10, 023 2,400 10, 023 Russian sardines 2,400 Other fish 400, 500 98, 524 98, 524 Total 3, 742, 862 468, 380 6, 613, 705 545, 809 10, 356, 567 1,014, 189 Source: U. S. Bureau of Fisheries. INCOME OF PERSONS ENGAGED IN FISH INDUSTRY FISHERMEN It is exceedingly difficult to ascertain the income of fishermen. A few enterprises, such as the operation of vessels by large firms, arc on a wage basis. For the most part, however, the fisherman's income depends on the proceeds from the sale of the fish catch. On the larger vessels compensation is on a share basis. Operating expenses are first deducted, and the remainder is divided into shares, several going to the owner, several to the captain and to the engineer, and one to each member of the crew. Shares are usually divided after each trip, and a crew's share of more than $100 each for a w T eek's trip may be regarded as unusually high. In smaller boat fisheries individual fishermen or partners own and operate on a profit basis, sometimes employing other fishermen on w^ages or shares. Since the sharing system has many modifications, and all depends on the fish- ing success, it is virtually impossible to gauge the income or pur- chasing capacity of fishermen. There are always some operating at a loss, many operate at small profit, and some get very high returns. Though it is impossible to obtain an estimate of fishermen's in- comes, some idea of purchasing capacity may be gained by recalling that the annual value of fishery products in New England is about $19,000,000. This amount is spent for the operation and replace- ment of vessels, boats, and gear, and for the personal expenditures of fishermen and their families. WHOLESALE TRADE EMPLOYEES From the table on page 86 it may be seen thai in the wholesale fish trade 1,922 persons were employed and that $2,157,537 was paid in salaries and wages. From this it may be calculated that the average per person is $1,120. This figure, however, is too low, since the 1,922 92 INDUSTRIAL STRUCTURE OF NEW ENGLAND persons include proprietors and firm members, for which no com- pensation was reported. It is estimated that the average is more nearly $1,200. CANNING AND PRESERVING INDUSTRY There were 6,608 persons employed by the canning and preserving industry in 1924, and $2,853,414 was paid in wages, according to Bureau of Fisheries reports for that year. As in the table on the wholesale trade, the figures for number of persons include proprietors and firm members, whose compensation does not appear in the statis- tics. For more accurate information on this subject the following table has been prepared from census figures. These probably give good averages, but the totals are not complete, since all enterprises with production under $5,000 annually have been excluded. Since there are many small firms engaged in salting and smoking fish, this omission is of some importance. Furthermore, in Maine the employ- ment in sardine canneries is seasonal, six months probably being the average duration. The low earnings of the women sardine packers in Maine are doubtless responsible for the low average in that State. Employment in the Fish Canning and Preserving Industry in 1927 Item Proprietors and firm members.. Salaried officers and employees - Salaries Average salary Wage earners (average number) Wages Average wage Maine 27 165 $245, 682 $1, 489 1,888 $904, 742 $479 Massachu- setts 9 227 $404, 021 $1, 780 917 $1, 014, 558 $1, 106 Total 392 $649, 703 $1, 657 2. 805 $1, 919; 300 Source: V . S. Bureau of Fisheries. Part II.— TRANSPORTATION, POWER, AND FUEL Note. — Assistance in compiling the data on transportation was given by Edwin Bates and K. .1. McPall of the Department of Commerce. , RAIL AND WATER TRANSPORTATION The purpose of this section is to show the facilities available for connecting the freight traffic of New England with the rest of the country; it is thus confined to a consideration of the external x tie-up of the region's transportation structure. RAIL GATEWAYS Because of the region's location, the rail routes that tie New Eng- land to the rest of the country play an especially vital role in its in- dustrial life. Dependence in large measure on regions to the west and south, for raw materials, for fuel, and for market outlets, gives unusual importance to the cost of transportation. The fact that the volume of inward-moving fuel and raw materials greatly exceeds that of outward shipments — chiefly manufactured goods of relatively small volume and high value — is inevitably reflected in the general level of freight rates, on account of the preponderance of one-way revenue-freight traffic. The bulk of rail traffic moves into and out of New England through five major gateways. One of these connects the rail lines that converge in the vicinity of Albany, N. Y., with the two main rail systems — Boston & Maine and Boston & Albany — that serve northern and central New England, providing through traffic with the West across New York State. For north and south traffic, con- necting lines link these with lines traversing southern New York State and Pennsylvania. About 42 per cent of New England's total tonnage, both inbound and outbound, moves through the gateways that pierce the middle-western boundary of New England, opposite the Mohawk Valley. One of the principal rail gateways into southern New England is the route along Long Island Sound, over the New York, New Haven & Hartford system, through New York Harbor, where connection is made with various trunk lines converging in New York City and pro- viding access to the interior of the country westward and southward. There is a great concentration of traffic through this gateway, both for all-rail traffic to and from the interior and for water shipments through the port of New York. About 22 per cent of New England's inbound rail movement and 25 per cent of its outbound movement are through this gateway. 1 The rail and water facilities within the New England region are discussed in Chapter VIII of The Commercial Structure of New England, published separately as Part II of The Commercial Survey of New England (Domestic Commerce Series No. 26, U. S. Depart- ment of Commerce). The nature and volume of commodity movements into and out of New England over the various boundaries are presented in The External Trade of New England. (Domestic Commerce Series No. 22.) 93 94 INDUSTRIAL STRUCTURE OF NKW ENGLAND There is also an important group of lines converging at Maybrook. N. Y., crossing the Hudson River at Poughkeepsie and entering New England north of the Sound region, thus avoiding the traffic conges- tion of the New York district. A substantial portion, about 18 per cent of the inbound traffic and 10 per cent of the outbound traffic, enters and leaves New England through Maybrook. A lesser volume of traffic moves into and out of New England through the gateways of northern New York and Vermont. Such traffic comprises about 10 per cent of the inbound and about 15 per cent of the outbound rail shipments. Figure 5 Besides these all-domestic routes, there are several routes by which traffic moves over the Canadian lines to the Middle West by way of (he Great Lake region. They account for about 6 per cent of both ihe inbound and the outbound rail movement of New England. These northern routes play a competitive role and are a factor in fixing the rates between New England and the Middle West. They provide an all-rail differential route to the Middle West from Long [gland Sound al New London over the Central Vermont Railway via St. Albans and the Canadian National Railway Lines. There is also a differentia] route over the Boston & Maine via Newport, Vt. The relative importance of these different gateways in the loaded freight-car movement into and out of New England in 1926 is shown graphically in Figure 5. FREIGHT RATE STRUCTURE The present freight-rate structure of the country has developed out of past experience, under conditions existing when rates were deter- KAIL AND WATEB TRANSPORTATION 95 mined solely by competition. New England's favored location re- garding water transportation lias been an important factor in traffic with regions where competitive routes are offered. Between distant points of origin and of destination the through freight rates for the country are based upon relatione between the different territories into which the carriers, through their regional freight associations, have divided the United States. In each of these the schedules vary for different commodity classifications, and there are also separate schedules for volume movement of individual commodities. While the rate structure for New England in general applies alike to inbound and to outbound movements, there are special distinctions to be noted in certain areas. Westbound rates between New England and Central Freight Association territory are lower FREIGHT RATE REGIONS of THE UNITED STATES IN RELATION TO NEW ENGLAND TRAFFIC NEW E NGLAND SURVEY U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division Figrure 6 than the eastbound all-rail rates. Transcontinental rates and rates to southwestern territory are the same in both directions. The general rate territories into which the United States is divided are shown in Figure 6. In each of these divisions there is a dis- tinctive basis for constructing rate schedules. BREAK-UP OF TERRITORY For westbound traffic the whole region may be taken as a single unit. Traffic going west of Buffalo, Pittsburgh, and Wheeling takes the Boston rates, no matter what part of New England is its origin, except for northern Maine. On eastbound traffic from points west of the Buffalo line, the Bos- ton rates apply to all of Connecticut, Rhode Island, and Massachu- setts, to the southern part of Maine and New Hampshire, the southern and western parts of Vermont, and to points on the Grand Trunk 96 INDUSTRIAL STRUCTURE OF NEW ENGLAND line as far east as Portland. For eastern and northern Maine the eastbound rates are generally based on those for Rockland, Me. On traffic interchanged with the southeastern States in either direction certain parts of New England pay more than the Boston rates. Totally different systems of rate making have developed to apply to traffic interchanged with different large sections of the country. These rate systems apply with fair uniformity to movements starting or terminating in any part of each of these large territories. RATES TO NEAR-BY TERRITORY Between New England and the region immediately to the west — known as trunk-line territory, extending from the New England boundary to the Buffalo-Pittsburgh-Wheeling line — the freight-rate system is very complex for both inward and outward traffic. Since this region is so close to New England, there is great variation in the distances which individual shipments have to move between origin and destination. Rates applied to individual cases are based roughly upon the distance of haul. For traffic moving between New England and points west of trunk- line territory (that is, Central Freight Association territory) there is some distinction between eastward and westward shipments. On westward movements the six New England States are generally considered as a unit. For freight originating in any part of New England and destined to points west of trunk-line territory the rate is approximately the same as that from Boston. For traffic moving eastward from points west of trunk-line terri- tory, except from transcontinental and southern territory, New Eng- land is divided into two rate areas. The greater part of New Eng- land takes the rate for Boston. To points in eastern and northern Maine and in northern Vermont and New Hampshire the rates are generally based on those to Rockland, Me. PERCENTAGE RATE AREA In the region west of the trunk-line territory, freight rates are built on a highly systematized basis graduated according to distance, designated as the percentage system. The region includes all the area north of the Ohio River, extending west to the Mississippi and north to the Illinois State boundary, and takes in the States of Ohio, Indiana, Illinois, most of Michigan, and the southern part of the Province of Ontario (that is, the area included in Central Freight Association territory). Special areas containing the leading points on the west shore of Lake Michigan are included. The rates to (Minneapolis and St. Paul and to the leading cities of southern Wisconsin are closely related to the percentage system. The rates between Chicago and New York are the yardstick for rate making on traffic interchanged between this area and the whole northeastern seaboard. Rate levels are determined primarily by the percentage relation between the New York-Chicago mileage and the distance from various zones in this area to points in the East. In this territory the freight rates to and from New England increase with considerable regularity according to the distance. RAIL AND WATER TRANSPORTATION 97 DIFFERENTIAL RAIL RATES Differential rail rates, lower than the standard all-rail rates by de- fined amounts, are also available for traffic moved between New Eng- land and points in the Middle West, extending as far westward as Montana. These lower rates are given over routes which are somewhat longer, or slower, than the standard routes. The routes include ocean and rail, via Atlantic ports; rail and lake, via the Great Lakes; and all-rail, via longer rail routes, particularly on the Canadian railways. The influence of these routes has been of con- siderable importance to New England. COMBINATION RATES WITH THE GREAT PLAINS Traffic interchanged with the Great Central Plain, lying between the Mississippi River and the Rocky Mountains, generally moves on what are known as " combination rates." These are a combination of the regular charge to the western edge of the territory covered by percentage rates, plus another rate applying between that line and the particular receiving or shipping location in the West. The portion of the entire rate which applies to the eastern part of the haul may be the percentage rate on Chicago; in the central and the northern portion it is that for the " Mississippi crossings." The por- tion of the rate applying to the western part of the haul may be the regular rate between the river and the western location involved ; or it may be a somewhat lower rate used solely for combination, and known as a " proportional rate." In almost all cases the lowest possible combination of rates for any routing applies to all rates. Since the rates increase progres- sively over various distance zones westward from the Mississippi, the charges between various points in this western territory and New England are based roughly upon the distance involved. A maximum limit upon rates applying to points on the western edge of this ter- ritory is imposed by the ruling that they can not be higher than transcontinental rates. Through rates to the Southwest (Arkansas, Louisiana, Oklahoma, and Texas) were established in the summer of 1928. TRANSCONTINENTAL RATES The transcontinental rate system applies to all traffic between the East and the Pacific coast territory, bounded roughly on the east by the Rocky Mountain divide. This system has been built upon the rate structure for traffic interchanged between the East and the Pacific coast water terminals. The rates to the terminals, in turn, have grown out of competition between the railways and the water carriers. It was formerly true that generally the lowest rates ap- plied to much of the traffic moving westward to the actual terminals. Rates to the intermountain points, where there was less competition, tended to exceed the terminal rates by the amount of the local rate for the back haul from the coast. To-day, while the rates to the coast terminals are the basis for transcontinental rates, the charges on traffic interchanged in each direction with the intermountain points are shaded downward from this basis, rather than upward. 98 INDUSTRIAL STRUCTURE OF NEW ENGLAND In Figure 7 is shown the competitive position of the eastern two-thirds of the country in relation to all-rail transcontinental traffic with California terminals. The chart at the base of the map gives rate comparisons for first-class freight moving from the different lettered areas in the East. While this map is con- structed for westbound class traffic to California terminals, it is fairly representative of all transcontinental traffic interchanged COMPETITIVE POSITION OF NEW ENGLAND ON RAIL SHIPMENTS to CALIFORNIA TERMINALS (and Southern Intermediate Points) U. S DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division ' RATE COMPARISONS FOR LETTERED GROUPS of SHIPPING POINTS FROM POINTS IN RATE IN DOLLARS PER 100 LBS —FIRST CLASS FREIGHT GROUPS Aand K B •• L C - M D E F GandH J Figure 7 in either direction with points west of the Rockies. With some rates on special commodities there is less breaking up of the eastern ter- ritory, the same rate applying over broader "blanket zones." For certain commodities moved eastward the rates are blanketed over the entire country cast of the Rockies, RATES TO AND FROM THE SOUTH Rales on traffic interchanged between New England and the southern territory east of the Mississippi and south of the Ohio River have also \\\\ out of a transportation situation in which water competition ha- played an important part. There, again, the cities BAIL AND WATER TRANSPORTATION 99 enjoying water communication were formerly given lower rates than their surrounding territory. This practice has been changed in recent years, and now the tendency is for the rates published for the leading cities to apply also to all points in their neighborhoods. Thus, the South is broken up into various commercial ureas for rate- making purposes. Within the past two years there has been a material adjustment in the rates from New England to southern territory, placing them more fully on a mileage basis. FACILITIES FOR WATER TRANSPORTATION In coastwise traffic to the Atlantic and Gulf ports water facilities antedate the railroads as a means for extending New England com- merce to a wide market in the United States. The opening of the Panama Canal in 1914 doubled this advantage by extending its water traffic to include the Pacific coast regions. Cheapened water trans- portation has brought the coasts relatively closer together, at the same time that increased rail rates have moved the interior of the country relatively farther from seaboard. Development of the trunk-line railroads and their extension across the continent in the latter half of the nineteenth century — in which New England capital and enterprise played a prominent part — diverted attention for a time from the advantages of New England's water facilities in domestic trade. By opening up the interior of the country to low-cost rail transportation an ever-increasing market was made accessible. This water service is important also in the movement of manu- factured products to the Pacific coast and into the Southwest. New England manufacturers forward a substantial portion of their products to the Pacific coast via the United States intercoastal con- ference lines, and into the Southwest via the Atlantic coastwise and Gulf steamship lines. The service compares favorably with all-rail routes with a 15-clay schedule between New York and Los Angeles via the Panama Canal. The increased cost of rail service in recent years and the conges- tion of traffic have given renewed emphasis to the advantages of water transportation and have directed attention to establishing the best balance between rail and water traffic. A large proportion of bulky commodities, such as fuel and raw materials for manufac- ture, in which low freight rates are more important than rapid movement, is adapted to this water traffic. The avoidance of rail congestion also makes the use of water facilities frequently an actual saving of shipping time. The water facilities of New England may be considered according to regions concerned, as those for (1) local interchange between New England points, (2) interchange of traffic through the port of New York for domestic and foreign shipment, (3) interchange with the Atlantic and Gulf ports in domestic trade, (4) interchange with the Pacific coast, and (5) direct foreign traffic with non- American ports. About four-fifths of all New England's water traffic is coastwise shipping, and less than one-fifth is foreign traffic. Of the coastwise shipping the greatest volume of movement is between New England and the Atlantic and Gulf ports. 100 INDUSTRIAL STRUCTURE OF NEW ENGLAND MAIN ROUTES AND CONNECTIONS Direct water service from Boston and Providence to Philadelphia, Baltimore, and Norfolk is given by the Merchants & Miners Trans- portation Co. The Clyde Line, the Ocean Steamboat Co., and the Eastern Steamship Line operate between Boston and southeastern ports. Water traffic from New England ports through the ports of Baltimore and Norfolk has a differential advantage over all- rail routes in a territory spreading out to the westward over much of the region north of the Ohio River, including Chicago and Duluth and extending westward to the Rockies. The water route through Hampton Roads is of very great impor- tance to New England industry, because over this route moves half the bituminous coal — upward of 10,000,000 tons annually — that is consumed by New England industries. This coal moves by rail from the mines of West Virginia to tidewater, and thence by vessel to New England ports, at rates below the all-rail rates from Pennsyl- vania mines. Minor quantities of coal move also from the more northern fields through the ports of Baltimore and Philadelphia. Direct water connections through the South Atlantic ports of Charleston, Savannah, and Jacksonville are afforded by the Clyde Line, the Merchants and Miners Transportation Co., and the Savannah Line for commerce with the Southeastern States. The connection at Savannah with the terminal of the Illinois Central Railroad system provides also an Atlantic corridor to the Middle West, which brings the port of Boston into direct communica- tion with this interior region. Combined water-and-rail rates with the South are fixed at certain differentials below the all-rail rates. The Panama Canal brings the whole Pacific coast region, extend- ing eastward to the Rockies, into a favorable position in which trans- portation rates for New England are materially less than the all- rail continental rates from points well in the interior. This inter- coastal traffic by water is confined practically to a limited selection of goods which do not require rapid movement. NEW ENGLAND POWER SITUATION The high degree of industrialization in New England makes the matter of an adequate and economical power supply one of the vital factors in the continued development of this section in competition with other regions. New England has been passing through a period of pronounced growth and change in its power situation, generally parallel to the expansion throughout the country. The developments in this region have taken the following directions : 1. A change from private sources of steam and water power gen- erated within individual manufacturing establishments to the use of purchased electrical energy provided by power companies. 2. The concentration and development of separate power units within central supply systems which serve the industrial users in a wide area. 3. Increased utilization of the natural water-power resources of the region, through the development of projects at new sites and through expansion of former units by enlarging reservoir capacities and increasing elevations to increase the efficiency of stream flow. The plan of this section is first to indicate the extent of the total power requirements of New England industries, and to show the trend of growth in these over a period of years. Consideration is then given to the sources from which these power requirements are supplied, with the relative importance of fuel and water. The type of agencies which supply power to New England industries is then discussed, together with changes and trends in the relative impor- tance of these sources and agencies. Electrification of New England industry is considered in regard to its present volume and its recent trends. This includes consideration of the development of power interconnections by the linking up of central stations. Water power is considered from the angle of total resources, its growth and present development, the extent of undeveloped water power, and the sources outside New England that may have signifi- cance to the industries of this section. No exhaustive treatment of this highly technical engineering sub- ject is attempted here. Various agencies have made surveys and reports on certain phases of New England power to which the reader is referred for more detailed information. The reports of the power commissions of some of the States, particularly in Maine, New Hamp- shire, and Massachusetts, cover this subject more fully than is pos- sible in the present treatment. The most comprehensive and detailed of these studies is a general survey 2 of the New England power situation by the Associated Industries of Massachusetts, published in 1924. 2 Reference is made especially to the following reports : Superpower Study of the North- eastern Section of the United States, by the Federal Power Commission, 1924 ; Report of Associated Industries of Massachusetts Power Investigation Committee, 1924 ; Reports of New Hampshire Power Commission ; Annual Reports of Maine Power Commission, espe- cially that for 1918; a report by the New England Council in 1927, entitled ' Power Interconnections." 61232°— 30 8 101 102 INDUSTRIAL STRUCTURE OF NEW ENGLAND POWER REQUIREMENTS AND EQUIPMENT The total power requirements of the New England population would include not only the power for turning machinery in factories but also that used for street and municipal lighting, electric railways, the lighting of private dwellings, and electric power used on farms. The electrification of steam railways is also a growing factor in the change of power sources. No complete information is at hand to show the total consumption of power throughout New England. The only records of actual power consumption are those for pur- chased electric energy which passes through meters of public utility companies. In the absence of records of power developed or consumed in manufacturing establishments, the only available indicator is the capacity in horsepower of the equipment used as prime movers. This is shown for census years by the United States Census of Manu- factures, which classifies the capacity of prime movers, according to sources of power, under the headings of fuel burning, Avater driven, or operated by purchased electric current. The rated capacity of all prime movers in manufacturing estab- lishments of the six New England States in 1925 was approximately 4,350,000 primary horsepower and represented a little less than one- eighth of the total for all manufacturing industries of the United States. The importance of all power equipment in manufacturing establishments of the individual States is shown by the following table. Installed Capacity of Power Equipment in New England Manufacturing Establishments in 1925 State Total pri- mary horse- power Per cent of New England Massachusetts _ 2, 130, 503 847, 395 628, 941 410, 181 376, 373 172, 762 46.6 Connecticut. _ _ 18.6 13.8 Khode Island . . _ 9.0 8.2 Vermont ... 3.8 Total ..- 4, 566, 155 38, 825, 681 100.0 11.7 NATURE OF POWER EQUIPMENT About 60 per cent of the power equipment in New England fac- tories is operated by power generated within the individual establish- ments from fuel or water. The remainder is operated from electric current purchased from power' companies or from other manufac- t urers. Of the portion supplied from the individual power plants of manu- facturers, slightly more than half is provided by steam or water power- applied directly to the turning of machinery; and a little less than one half is 'used to generate electric current within the establishment . XKW ENGLAND POWEB SITUATION 103 Fuel was used in L925 as a source of power to operate t2.3 per cent of the equipment of private manufacturing plants, and water was the source of power for only 18 per cent, while internal-combustion engines comprise but 2 per cent. The following table shows for 1927 the relative importance of these different types of power equip- ment in the manufacturing establishments of each State. This is shown graphically for 1925 in Figure 8. Figure 8. — Relative importance of various types of power equipment in New England manufacturiig plants in 1925 Types of Power Equipment Used in New England Manufacturing Estab- lishments in 1927 [Rated capacity in horsepower of all prime movers] Source of power Fuel burning Steam engines Steam turbines Internal combustion Water driven: Water wheels and turbines Purchased current: Electric motors Total, all sources Each State as per cent of New England total Per cent operated by each type: Fuel-burning equipment Water-driven equipment Purchased current Mass- achu- setts 944, 586 525, 659 409, 117 9,810 163, 406 1,022,511 2, 130, 503 46.66 44.34 7.67 47.99 Con- necti- cut 323, 561 167, 053 150, 391 6,117 52, 571 471, 263 847, 395 18.56 38.18 6.21 55.61 Maine 150, 402 91,554 57, 125 1,723 317, 870 160, 669 628, 941 13.77 23.91 50.54 25.55 Rhode Island 189, 385 94, 925 91, 260 3,200 21, 558 199, 238 410, 181 46.17 5. 26 48.57 New Hamp- shire 163, 846 73, 570 87, 714 2,562 154, 748 57, 779 376, 373 8,24 43.53 41. 12 15.35 Ver- mont 42, 469 32, 181 8,327 1,961 51,705 78, 588 172, 762 3.79 24. 58 29. 93 45.49 Total New England 1, 814, 249 984, 942 803, 934 25, 373 761, 858 1, 990, 048 4, 566, 155 100. 00 New England as per cent of United States 10.03 9.71 11. 85 2.17 47. 66 10.40 11.76 Source: U. S. Bureau of the Census. There is conspicuous contrast among the individual States. In Maine more than half the power equipment is water driven. In New Hampshire and Vermont also water power is a large proportion of the total. In Massachusetts, Connecticut, and Rhode Island, how- ever, less than 10 per cent of the power equipment in manufacturing establishments is driven by water. Purchased current is the power source for more than half the purchased equipment in Connecticut and for nearly half that of Rhode Island. In Massachusetts fuel is slightly less important than purchased current. 104 INDUSTRIAL STRUCT URE OF NEW ENGLAND GROWTH IN POWER EQUIPMENT The growth of the amount of power equipment installed in New England industries in the census years from 1869 to 1927, inclusive, is shown in the following table. In the two decades from 1869 to 1889 the total primary horsepower doubled. In the next 20 years, ended in 1909, it more than doubled. Since 1910 the growth has been fairly regular and continuous. The total rated capacity in 1925 was upward of 16.5 per cent greater than in 1910. In this same period, however, the expansion for the United States as a whole was relatively greater, amounting to more than 19 per cent. The most significant facts in the recent development of New Eng- land's power equipment are (1) the great increase in equipment operated by purchased electric current since 1914, (2) the relatively stable position of water-driven equipment since 1909, and (3) a substantial falling off in the fuel-burning equipment of private indus- trial plants since 1914. The installation of equipment using purchased electric current has increased 31.3 per cent in New England since 1914, as measured by horsepower capacity, in comparison with 30.7 per cent for the United States as a whole. Changes in Total Power Equipment of New England Manufactures 1869-1927 Census Total primary horse- power J New Eng- land as per cent of United States Census year Total primary horse- power * New Eng- land as per cent of United States year New Eng- land United States New Eng- land United States 1927 192.5 1923 1919-.. 1914-.. 1909 4, 566, 155 4, 349, 191 4, 151, 136 3, 796, 846 3, 124, 329 2, 715, 121 38, 825, 681 35, 772, 628 33, 094, 228 29, 504, 792 22, 437, 072 18, 675, 376 11.8 12.2 12.5 12.9 13.9 14.5 1904 1899.. 1889 1879.. 1869 2, 125, 815 1, 792, 342 1, 156, 877 743, 106 514, 730 13, 487, 707 10, 098, 000 5, 939, 000 3, 411, 000 2, 346, 000 15.8 17.7 19.5 21.8 21.9 1 Includes equipment operated by purchased electric current. Source: United States Biennial Census of Manufactures. CHANGES IN SOURCES OF POWER The next table shows the changes from 1904 to 1925 in the relative importance of fuel-burning and water-driven industrial equipment for New England as a whole. Changes in Source of Power for New England Industrial Equipment, 1904 to 1925 [Percentage of total horsepower capacity] Year Generated i manufac- turing establishments Purchased Cl -rent 30.84 37. 70 30. 22 Year Generated in manufac- turing establishments— Purchased From fuel From water From fuel From water current 12. 29 13 06 50. 09 17.88 IS. .34 10.69 L014 L909 61.52 62. 64 64.00 24. 25 27. 89 31.00 13.2:5 1923 9.47 J'*]'* 1904 5.00 NEW ENGLAND POWBB SITUATION J()5 ELECTRIFICATION OF INDUSTRIES The growth of the utilization of electric power is an important factor not only because of its effect upon the productive industries but because of its far-reaching effect in opening up a large market for electrical equipment and appliances. Every factory which installs electric power becomes thereby a market for motors and accessories. Every household which uses electric current is a potential market for numerous household appliances. Every farm so equipped finds various uses for electrically driven machinery. The increased availability of electric power for manufacturing processes fosters the economical development of industry. It brings to isolated plants in small communities the advantage of economical power that is enjoyed in large industrial centers and thus tends to relieve the concentration of industry in the large centers. The ac- cessibility of this power is particularly significant to the periodic and small-unit industries which do not have large power requirements. The steam engine and the water wheel could transmit power only by shafts or belts, hence mills had to be built as highly concentrated units. The ease of transmission of electrical power is tending to disperse industry instead of confining it to congested areas. The increased electrification applies also to communities already served, in the improvement of service resulting from linking up small, separate units by interconnections of central stations. The wider distribution of power load thus made possible provides a more abundant and regular supply of power at individual points. Development of interconnecting power systems increases the ad- vantage to industrial users, not only because it assures specified amounts of power to meet stated requirements, but also because it provides continuity of supply which is available instantly day or night in abundant quantity to meet such additional load requirements as expanding business may make necessary. USE OF PURCHASED CURRENT New England industrial establishments in 1924 consumed 3,093,- 197,000 kilowatt hours of electrical energy. Of this total consump- tion, central power stations supplied 58.4 per cent, and 41.6 per cent was generated in private industrial plants. Thus, it is seen that central stations supply more than half of all the electrical energy consumed in New England manufacture. In 1924 there were 1,038 private industrial plants in New England generating electricity, whose equipment had a total rating of 751,565 kilovolt amperes. In 1925 there were 330,093 electrically driven motors in the industrial plants of New England. About two-thirds of these were small motors with a capacity of less than 5 horsepower. Of this total number 63.5 per cent were driven by purchased current and the remaining 36.5 per cent were operated by current from pri- vately generated sources. OWNERSHIP OF CENTRAL STATION POWER PLANTS Most of the electric power produced for sale in the New England States is generated by power companies and traction companies. In 1922 power companies produced 78 per cent of the New England total 106 [NDUSTRIAL STRUCTURE OF NKW ENGLAND and traction companies 18 per cent. Municipal plants contributed only 2 per cent and private sources less than iy 2 per cent of the total. The volume of power generated in each State in 1922 by the differ- ent kinds of plants is shown in the following table, as reported by the Associated Industries of Massachusetts. Output of Central Station Power in New England States in 1922 [Thousands of kilowatt hours generated] State Power companies Traction companies Municipal plants Private sources Imported Total Massachusetts 1, 422, 165 534, 612 346, 725 284, 460 198,608 69, 440 396, 295 185, 530 63,800 683 48, 080 9,068 28, 070 1, 300 3,040 6,637 7,567 6,130 1,894,610 Connecticut 730, 510 413, 565 Rhode Island Maine 700 850 13, 415 12, 055 304, 535 New Hampshire 207, 025 93, 165 Vermont ... .. 3,480 700 Total 2, 856, 010 78.4 649, 788 17.8 72, 113 2.0 52, 744 1.4 12, 755 .4 3,643,410 Percentage produced by each type 100 1 PUBLIC UTILITY POWER DEVELOPMENT The production of electric power by central stations and public- utility companies in New 7 England, according to reports of the United States Geological Survey, showed an increase of 51 per cent from 1920 to 1926. In this same period the production for the United States as a whole increased 69.4 per cent. It thus appears that although central-station development has made substantial growth in New England in the last few years, it has been surpassed by some other parts of the United States. The production of central stations and public-utility companies in New England in 1920 was 7.81 per cent of the United States total ; in 1 926 it was 7 per cent : and in 1928 it was 6.78 per cent. Figures of the annual power production of New England and comparative fig- ures for the United States are given in the following table. Annual Electric Power Production by Central Stations and Public- Utility Companies of New England and of the United States, 1920-1928 New England United States Year Millions of kilowatt- hours Increase from pre- ceding year Relation to United States total Millions of kilowatt- hours Increase from pre- ceding year 1928 5, <>"><> 6,471 5, m 4, 824 4, 335 4, 276 3, 730 3,214 3, 407 Per cent 8.9 5. 9 7. 1 LI. 3 1.4 14.6 16.1 » 5.7 Per cent 6.78 6. 82 7.00 7. 32 7. 34 7.68 7.82 7. 85 7.81 87, 850 80, 205 73,791 65, 870 59, 014 55, 674 47, 659 40, 976 43, 535 Per cent 9. 5 LS27 - 1926 - - --. 8.7 12.0 L92I 11.6 1924 6.0 ! (23 - 16.8 1922 16.3 L921 .- ' 5. 9 1920 11.9 I i i I leologh .1 i hi ■.<•;. . XKW KXdl.wi) Powki; SITUATION 107 SOURCES OF ENERGY Figures of the Geological Survey for the annual production of electricity by public-utility power plants show that approximately two-thirds of the total production, as measured by kilowatt-hours, is contributed from fuel and one-third from water power. Compari- son of fuel sources and water sources from 1920 to L928 by years is afforded for public-utility plants in the next table. It is noted that the increase in total power production has run almost parallel in these two sources. The proportions for the individual years show very little variation, but since 1926 there has been a pronounced in crease in the relative importance of water sources. Sources of Annual Production of Electricity by Public-Utility Power Plants in New England, 1920-1 .928 [Thousands of kilowatt-hours] Total From water From fuels Year Total Per cent of New England total Total Per cent of New England total 1928 5, 968, 843 5, 470, 556 5, 165, 955 4, 823, 655 4, 334, 553 4, 275, 836 3, 729, 873 3, 214, 189 3, 406, 712 2, 377, 869 1, 989, 386 1, 684, 790 1, 637, 835 1, 437, 012 1, 253, 734 1, 210, 475 1, 038, 693 1, 133, 910 39.9 36.4 32.6 33.9 33.2 29.3 32.4 32.3 33.3 3, 580, 974 3, 481, 170 3, 481, 165 3, 185, 820 2, 897, 541 3, 022, 102 2, 519, 398 2, 175, 496 2, 272, 802 60. 1 1927 63.6 1926 67.4 1925 66.1 1924 _ 66.8 1923 1922_ 70.7 67.6 1921 67.7 1920 66.7 Source: U. S. Geological Survey. A report for the 12 principal power systems of New England for 1926, compiled by The Electrical World, showed that of the 61 power- stations included in these 12 systems there were 19 fuel-burning plants, whose total rating of generators was 1.094,617 kilovolt am- peres and 42 hydroelectric plants (of which 22 were in Maine) whose generators had a total rating of 323,005 kilovolt amperes. Thus, in the plants included in these principal power systems fuel was the source of energy for over 77 per cent of the total generator capacity, and water power was the source for less than 23 per cent. Of these fuel-consuming plants coal was the source for 92 per cent, and fuel oil for about 8 per cent, SOURCES OF CENTRAL STATION POWER IN DIFFERENT STATES The relative importance of fuel and of water in the production of electric power by central stations is shown for each State, as of 1922, in the following table. 108 INDUSTRIAL STRUCTURE OF NEW ENGLAND Sources of Electrical Power Generated by Central Stations in New England States in 1922 Fuel Water Total, thousands of kilowatt- hours gen- erated State Thousands of kilowatt- hours gen- erated Per cent of total Thousands of kilowatt- hours gen- erated Per cent of total Massachusetts _ . 1, 504, 125 579, 540 406, 410 20, 080 34, 525 1,800 79.39 79.33 98.27 6.59 16.68 1.93 390, 485 150, 970 7,155 284, 455 172, 500 91, 365 20.61 20.67 1.73 93.41 83.32 98.07 1, 894, 610 730, 510 413, 565 304, 535 207, 025 93, 165 Connecticut . , . Rhode Island.. Maine _ . New Hampshire Vermont Total 2, 546, 480 69.89 1, 096, 930 30.11 3, 643, 410 Source: Report of Power Investigating Committee, Associated Industries of Massachusetts. It is seen that in 1922, 98 per cent of the power in Rhode Island was produced from fuel, and in both Massachusetts and Connecticut nearly 80 per cent was produced from fuel. These three States com- prise the bulk of the power production by central stations, amount- ing to 83 per cent of the New England total from all sources and about 98 per cent of the total from fuel sources. In contrast to this dependence on fuel in southern New England, in Vermont 98 per cent of the total production of central stations was from water, in Maine 93 per cent, and in New Hampshire 83 per cent. For all New England, according to these figures, 70 per cent of the total electrical power produced in central stations in 1922 was developed from fuel sources and 30 per cent from water. The relative importance of coal and oil in generating electric power in the different States is shown from 1926 to 1928 in the following table. Coal and Oil Consumption by Public Utility Power Plants in New 7 England States in 1926-1928 State Coal Oil 1926 1927 1928 1926 1927 1928 Massachusetts Short tons 1, 546, 952 840, 303 348, 459 1,919 49, 143 184 Short tons 1, 535, 025 824, 080 314,441 1,933 33,617 407 Short tons 1,546,906 839, 538 328,881 1,680 31, 232 Barrels 582, 173 1,512 181,975 116,517 1,474 37, 052 Barrels 628, 072 374 167, 225 30, 842 1,555 30, 221 Barrels 398, 710 Connecticut 202 Rhode Island 91,613 Maine 27, 281 New Hampshire... Vermont 2,841 50, 028 Total 2, 786, 960 2, 709, 503 2, 748, 237 920, 703 858, 289 570, 675 Source: U. S. Geological Survey. M LIBBAfiY CROWN POINT NEW ENGLAND STATES INTERCONNECTIONS BETWEEN UTILITIES SCALE IN MILES LEGEND TRANSMISSION LINES PROPOSED TRANSMISSION LINES • STEAM GENERATING STATIONS HYDRO GENERATING STATIONS HYDRO-STEAM GENERATING STATIONS UNDEVELOPED HYDRO SITES o SUB STATIONS CORRECTED TO MARCH I. 1929. Reproduced by courtesy of New England Council Power Committee 61232°— 30. (Face p. 109.) XKW ENGLAND POWEB SITUATION 109 INTERCONNECTIONS OF CENTRAL POWER STATIONS The growth of power equipment and capacity is only one indicator of the availability of power to meet the requirements of industry. The interconnections w T hich tie up individual units into large sys- tems are important in providing a reserve supply of energy to meet maximum demands. These interconnections equalize the distribu- tion of current to meet the load required at different places and differ- ent times. Since peak loads do not regularly appear simultaneously in all parts of an area, the interconnection of power units by means of a unified system permits the distribution of peak loads so as to relieve the individual plant of the necessity of installing equipment for meeting its maximum requirements single handed. The econo- mies resulting from such interconnections in turn admit of lower rates to power users. The fact that New England is a natural power unit argues for the unifying of its power resources in the way that will permit their most efficient and economical utilization. In the last few years there has been a growing tendency for neighboring power companies to consolidate, or to connect their lines and sell electrical power to each other as needed. As most of these power companies have their peak loads at different times, such a system is of great value in distribut- ing and equalizing their power requirements. The central stations of New England are actively interested in the economic develop- ment of their territories and encourage the introduction of new industries and the expansion of established industries by providing information that will aid in industrial development. Some of these interconnecting lines have been in existence for many years, but the development has been much more rapid during the last three or four years than during the dozen years preceding. With the exception of Maine, the present density of these interconnecting lines in the New England States is at least equal to that in the leading States of New York, New Jersey, and Pennsylvania. It is consider- ably more dense than that of any other part of the United States, with the possible exception of the region centering in Chicago. The extent of the present interconnections in the various power areas of New England is shown graphically in Figure 9. This map indi- cates, in addition to the location of the different types of power sta- tions, the location of undeveloped hydroelectric sites in northern New England. WATER-POWER DEVELOPMENT The rugged topography of New England, giving rise to falls and rapids in the numerous rivers and streams flowing from the moun- tainous interior in comparatively short routes to the sea, provides a great many locations with sufficient fall for generating water power. Coupled with this is the presence of many lakes and ponds, which form natural reservoirs and thus maintain the regularity of supply by restraining the water that falls on these areas from draining off rapidly. 110 [NDUSTRIAL STEUCTUBE OF NEW ENGLAND Water power depends not only upon the elevation or drop in the stream but also upon the extent of the drainage area and upon the reserve supply that is available from natural or artificial storage reservoirs. The extent of all water-power resources of the New England States and the degree to which they have been developed is shown in the following table. Total Potential Watee Power of New England States State Capacity available 90 per cent of the time Capacity available 50 per cent of the time Developed capacity in 1927 Horsepower Per cent of New England Horsepower Per cent of New England Horsepower Per cent of New England Maine. _ 536, 000 186,000 106,000 80, 000 65,000 25,000 53.7 18.7 10.6 8.0 6.5 2.5 1, 074, 000 350, 000 235, 000 169, 000 110, 000 40,000 54.3 17.7 11.9 8.5 5.6 2.0 537, 161 278,002 362, 123 200,157 148, 423 30,188 34.5 New Hampshire .. 17.9 Massachusetts 23.2 Vermont 12.9 Connecticut 9.6 Rhode Island ... 1.9 Total 998, 000 34, 818, 000 2.87 100.0 1, 978, 000 55, 030, 000 3.60 100.0 1, 556, 054 12, 296, 000 13.1 100.0 United States , New England as per cent of United States Source: U. S. Geological Survey. The first column of this table shows what might be termed the com- mercially available water power capable of providing practically con- tinuous energy. This is naturally much less than the energy that is available only 50 per cent of the time. The latter may be termed the maximum power capacity. The estimated capacity of New England rivers and streams avail- able 90 per cent of the time amounts to a little less than 1,000,000 horsepower and represents about 2.9 per cent of the total for the whole United States in this class. The capacity available 50 per cent of the time is naturally much greater, amounting to approxi- mately 2,000,000 horsepower. This represents a somewhat greater proportion (3.6 per cent) of the national total for this intermittent power. About four-fifths of all the potential water power of New England is in the three northern States, and only one-fifth is in the three in- dustrial States of the South. More than one-half of the total is in Maine; upward of one-fourth is in New Hampshire and Vermont ; a little more than one-tenth is within the boundaries of Massachu- < it : find Connecticut and Rhode Island together contain less than one-tenth of the New England total. NEW ENGLAND POWEB SITUATION 111 GROWTH OF WATER POWER DEVELOPMENT The water-power resources of New England were developed earlier and more fully than those of other sections of the country. It will be many years before all the water-power sites in the United States are developed to a greater extent than the sites that have been utilized in the New England States. Figures of water-power development as indicated by the capacity of all water wheels installed in plants of 100 horsepower and above show a fairly steady and continuous increase in this region; the relative position of New England in the water-power development of the country as a whole, however, shows a steady and continuous reduction — from 24.6 per cent in 1909 to 12.2 per cent in 1928, as is shown in the following table. Growth in New England Water-Power Development as Compared with the United States, 1909-1928 [In thousands of horsepower] Capacity of water wheels in- stalled in plants of 100 horse- power or more Year Capacity of water wheels in- stalled in plants of 100 horse- power or more Year New England United States New England as per cent of United States total New England United States New England as per cent of United States total 1928 1,654 1,536 1,535 1,399 1,387 1,390 1,330 1,310 1,300 1,250 13, 572 12, 296 11, 721 10, 038 9,087 9,090 8,270 8,050 7,800 7,590 12.2 12.7 13.1 13.3 14.0 15.3 16.1 16.3 16.7 16.5 1918 1,190 1,160 1,140 1,090 1,060 1,050 1,020 1,000 . 970 950 7.110 6,800 6,470 6,140 5,790 5,480 4,770 4,530 4,220 3,870 16.7 1927 1917.. 17.1 1926 1916 17.6 1925 1915 17.8 1924 19M 18.3 1923 1913 19.2 1922 1912 21.4 1921 1911 22.1 1920 1910... 23.0 1919 1909 24.6 EXTENT OF PRESENT DEVELOPMENT The extent of present water-power development in New England, and its magnitude in the individual States, as indicated by horse- power capacity, is shown in the first column of the following table. It is observed that Maine accounts for slightly more than one-third of the New England total; Massachusetts has a little less than one- fourth, and New Hampshire a little less than one-fifth; Vermont contributes more than one-eighth, and Connecticut and Rhode Island together a little less than one-eighth. 112 INDUSTRIAL STRUCTURE OF NEW ENGLAND Developed Watee Power i\ New England States m Plants of 100 Horse- power or More, 1926-1028 Total capacity Public utility and municipal Manufacturing and miscellaneous State and year Horse- power Per cent of New England total Horse- power Per cent of New England total Horse- power Per cent of New England total Maine: 1928 538, 761 537, 161 525, 509 362, 123 362, 123 353, 939 278,002 278, 002 277, 252 260, 157 200, 157 200, 157 184, 423 148,423 184, 423 30,188 30,188 30, 188 32.6 34.5 34.2 21.9 23.3 23.0 16.8 17.9 18.1 15.7 12.9 13.0 11.2 9.5 9.7 1.8 1.9 2.0 239, 801 234, 230 222, 570 159, 211 159, 211 171, 977 143, 711 143, 711 143, 711 216, 501 156, 501 156, 501 117, 405 81,405 81,405 3,285 3,285 3,285 27.2 30.0 28.6 18.1 20.5 22.1 16.3 18.5 18.4 24.6 20.1 20.1 13.3 10.5 10.4 .5 .4 .4 298, 260 302, 931 302, 939 202, 912 202, 912 181, 962 134, 291 134, 291 133, 541 43, 656 43, 656 43,656 67, 018 67, 018 67, 018 26,903 26,903 26, 903 773, 740 771, 711 756, 019 1, 658, 194 1, 757, 619 1, 759, 781 38 6 1927 39 3 1926 40. 1 Massachusetts: 1928 26.2 1927 26.4 1926 24.1 New Hampshire: 1928 17.4 1927___ 17.4 1926 17.7 Vermont: 1928 5.6 1927 5.7 1926 5.8 Connecticut: 1928 8.7 1927 8.7 1926 8.8 Rhode Island: 1928 3.5 1927 3.5 1926 3.5 Total: 1928 1, 653, 654 1,5.56,062 1, 535, 468 13, 571, 530 12, 296, 000 11,720,983 100.0 100.0 100.0 879, 914 778, 343 779, 449 11,886,336 10, 538, 381 9, 961, 202 100.0 100.0 100.0 100.0 1927 . 100.0 1926 100.0 United States total: 1928 1927 1926 . New England as per cent of United States: 1928 _ 12.2 12.7 13.1 7.4 7.4 7.8 45.9 1927 . 43.9 1926.... 42.4 Comparison of the ownership of this developed water power is instructive. For New England as a whole the ownership is almost equally divided between the public utility and municipal plants on one hand and the private manufacturing establishments on the other. Public agencies are slightly in the lead for the region as a unit ; they stand out particularly in Vermont and Connecticut. The private manufacturing establishments have a pronounced lead, however, in Massachusetts, Maine, and Rhode Island. Private development of water power bears a much higher proportion of the total in New England as a whole than it does nationally ; and public agencies hold a less prominent place in New England than they do for the country at large. UNDEVELOPED WATER-POWER RESOURCES IN NEW ENGLAND The report of the Power Investigating Committee of the Asso- ciated Industries of Massachusetts showed that in 1922 the unde- veloped capacity of water-power sites which were capable of practical development so as to make power available 60 per cent of the time on a full-load factor, in all New England, comprised about 865,000 NEW ENGLAND POWER SITUATION 113 horsepower. This included only sites with capacities exceeding 1,000 horsepower, and did not allow for possible increases from addition of storage developments with suitable pondage. It was estimated that a total installed capacity of about 1,720,000 horsepower would be required to make full use of this capacity if developed by ade- quate reservoirs. The estimate of the United States Geological Survey for power available 50 per cent of the time instead of 60 per cent is naturally somewhat larger. LOCATION OF UNDEVELOPED RESOURCES The power resources of industrial southern New England are, on the whole, already utilized intensively. There remain in this section few water-power sites that are capable of extensive new development. Additional water power of special interest to the industries of southern New England is that resulting from the redevelopment of existing sites or from the construction of storage reservoirs. It is significant that practically all water-power development of any importance in southern New England in the last 20 years has been of this nature. Upward of 80 per cent of the undeveloped water power as com- puted in the above-mentioned report was located in four river basins of northern New England — the Penobscot, the Kennebec, the Andro- scoggin, and the upper Connecticut River. The following table gives the computed undeveloped horsepower capacity of the various river basins of New England, and the corresponding kilowatt-hours which they would be capable of adding per year. On these same rivers there are many available power sites in units of less than 1,000 horse- power, not included in this table, whose output would be absorbed for local uses. About 75 per cent of the total undeveloped power was in the State of Maine. A substantial amount of development has taken place in some of these river basins since these estimates were prepared. Undeveloped Water Power in New England River Basins in 1922 River basin Horsepower capacity available 60 per cent of the time Corre- sponding millions of kilowatt- hours per year River basin Horsepower capacity available 60 per cent of the time Corre- sponding millions of kilowatt- hours per year Penobscot 236, 605 222, 670 141, 250 115,730 38, 830 29,440 27, 290 1,325 1,295 735 668 200 158 170 St. Croix 19, 455 18, 990 9,100 3,240 2,390 110 Kennebec Housatonic... 99 Connecticut Lake Cham plain 49 Androscoggin Quinegaug. 17 St. John Machias 12 Saco Total ..- 864, 990 Merrimack 4,830 Source: Power Investigating Committee of Associated Industries of Massachusetts. WATER-POWER SOURCES ADJACENT TO NEW ENGLAND In addition to the undeveloped water-power soufces within the New England States the region is situated not far from other abundant potential sources that merit consideration. 114 INDUSTRIAL STKUCTUUK OF NEW ENGLAND Situated at the eastern extremity of Maine, on the international boundary of New Brunswick, is the Passamaquoddy Bay power project. This contemplates the development of between 500,000 and 1,000,000 horsepower, at a cost of installation from $75,000,000 to $100,000,000. The plan of this project is to develop power by the creation of reservoirs and pools for impounding the high tides that rush into this area twice daily from the Bay of Fundy. The con- struction of massive dams and locks will harness the flow of water arising from the difference in water levels by directing its force against turbines installed in power stations at this site. On the St. Lawrence River, located between Ogdensburg, N. Y., and Montreal, are three important water-power areas, all within a radius of 250 miles from central Massachusetts. It is estimated that these could develop about 5,000,000 horsepower, which would be capable of delivering from 20,000,000,000 to 25,000,000,000 kilowatt- hours annually. The development of these sites will depend upon international agreements and upon negotiations for the projected canalization of the St. Lawrence River for deep-sea navigation. Somewhat more distant than this area is the power field of the Ottawa, St. Maurice, and Saguenay and St. Francis Rivers, in the Province of Quebec, which are estimated to be capable of a continu- ous output of about 2,500,000 horsepower. About 700,000 horse- power is now developed and construction is under way to make avail- able about 600,000 more. A considerable portion of this power is used in the pulp and paper industry in Quebec. All this field is within 450 miles of the center of power demand in eastern Massachu- setts, and about one-fourth of it is within a radius of 300 miles. The engineers who made the power report offered the opinion that importation of Canadian power might become feasible, even in spite of expected efficiencies and decreased labor costs of future steam stations at tidewater sites in New England. NEW ENGLAND FUEL SUPPLY Note. — The section on fuel was prepared with the cooperation of tlir Bureau of Mines. The fuel question is one of major importance in New England, both to its industries and to its householders. The region must de- pend entirely upon outside sources for fuel, with the exception of wood, for no mineral fuels — neither coal, natural gas, nor oil — are produced commercially anywhere in New England. (See p. 58.) With its large consumption of fuel, both for industries and for house- hold use, the transportation of necessary supplies becomes a factor of very great importance. Shipments of coal and oil into New Eng- land comprise a major portion of the total volume of freight traffic into this section. Fuel is thus the principal item in creating the great excess of inward-moving freight over outward shipments. It is therefore the principal factor in the problem of heavy one-way movement, with the resulting burden upon transportation equipment. New England's chief dependence for fuel is upon anthracite and bituminous coal from Pennsylvania and West Virginia, but large volumes of petroleum and petroleum products, brought in by tanker from California, the Gulf Coast, and foreign ports, are consumed. Coke, briquets, and other forms of solid fuel are used to a limited extent, in addition to manufactured gas. In recent years the con- sumption of petroleum as fuel has been of increasing importance, largely in consequence of the shortage and resultant high prices of coal. In years of special shortage of coal considerable quantities of anthracite and bituminous have also been imported, chiefly from the British Isles. COAL CONSUMPTION New England consumes approximately 30,000,000 tons of anthra- cite and bituminous coal yearly. The 6-year average from 1921 to 1926. inclusive, was 30,077,000 tons, varying from a minimum of 25,278,000 tons in 1922 to nearly 36,000,000 tons the following year. The total receipts of domestic coal in 1928, according to the Massa- chusetts Special Commission on the Necessaries of Life, were 29,028,000 net tons; in 1926 they were 31,679,000 tons. Approximately two-thirds of the total receipts is bituminous coal, and one-third is anthracite. In 1928 the reported receipts of bitumi- nous were 19,652,000 tons and of anthracite 9,376,000 tons. The fig- ures for 1926 were 21,067,000 tons and 10,612,000 tons, respectively. The 6-year average from 1921 through 1926 for bituminous was 20,156,000 tons, and that for anthracite was 9,921,000 tons. The greater proportion of the anthracite, probably 90 per cent of the total, is for household consumption. The greater proportion of the bituminous coal, however, is consumed by New England manufactur- ing plants and by public-utility companies for the production of power consumed in the industries. 115 116 INDUSTRIAL STRUCTURE OF NEW ENGLAND A test made by the United States Fuel Administration, covering a 6-month period in 1918-19, showed that of the total rail shipments of bituminous coal in that period approximately 60 per cent were con- signed directly to the industries, 19 per cent went to retail coal deal- BA5ED ON DATA FROM U 5 BUREAU OF MINES ~~ulTBUfi EJU OF FOREIGN AN D DOMESTIC COMMERCE 0387-46 Figure 10 ers, 10 per ceni to public-utility companies, and 5 per cent to public instil ut ion-. This covered only rail shipments, and it is probable that a greater proportion of the water shipments went to manufactur- ers, since manufacturing activities predominate in the tidewater service areas. NEW ENGLAND FUEL SUPPLY 117 The total coal consumed by all New England manufacturing estab- lishments in 1923, as reported in the census for that year (the latesi for which complete data are available by States), was 11,402,000 tons, distributed among the six States as follows : Coal Consumed by New England Manufacturing Establishments in 1928 [In thousands of tons] State Bituminous Anthracite Total Massachusetts 5,307 2,279 1,141 827 505 269 500 198 61 32 250 33 5,807 2,477 1,202 Connecticut _ .. .. Maine - - Rhode Island . . _ , 859 New Hampshire 756 Vermont 301 Total 10, 328 1,074 11,402 A ton of coal was consumed, on the average, for every $561 in value of manufactured products. The value of products represented by 1 ton of coal in 1923 varied, in different lines, from $48 in gas manufacture and $155 in paper manufacturing to $3,159 in the boot and shoe industry. In the metal industries the value of products per ton of coal averaged $611. These figures do not take account of coal consumed in generating the electric current purchased by manu- facturers from public-utility plants. The relative coal consumption in the individual counties of New England is indicated by dots on the map (fig. 10), which shows the tonnage consumed by manufacturers and public utilities in 1919. Although this. tonnage is for a period of postwar activity, it repre- sents fairly accurately the relative importance of different portions of New England as consumers of bituminous coal. The counties of greatest consumption are naturally those having the greatest concen- tration of large coal-consuming industries. A large proportion of this consumption is seen to lie in areas near tidewater. The annual receipts in New England of anthracite and bituminous coal from 1916 to 1928, as compiled by the Massachusetts Special Commission on the Necessaries of Life, are shown in the following table. New England Receipts of Anthracite and Bituminous Coal, 1916-1928 Thousands of tons Year Thousands of tons Year Anthracite Bitumi- nous Total Anthracite Bitumi- nous Total 1916 10, 715 11, 680 13, 621 10, 578 11, 255 11, 374 6,471 24, 122 23,504 27, 171 18, 182 22, 434 17,188 18, 807 34, 837 35, 184 40, 792 28, 760 33, 689 28,562 25, 278 1923 12, 184 10,611 8,280 10, 612 9,146 9,376 23, 684 18, 877 21,313 21, 071 22, 426 19, 652 35, 868 1917 1924.... 29, 488 1918 1925 29, 593 1919 1926 31, 679 1920 1927 31, 572 1921 1928. 29, 028 1922 61232°— 30 9 118 INDUSTRIAL STRUCTURE OF NEW ENGLAND The total receipts show considerable fluctuation from year to year, largely because of strikes and coal shortages in the producing regions. Accumulation of coal stocks within New England in anticipation of strikes has prevented any great inconvenience to manufacturers. New England can conveniently store upward of 4,000,000 tons of coal. This accounts, in large measure, for the fluctuations in annual re- ceipts. While no great change is shown in the general trend of total shipments, there has been a pronounced falling off in anthra- cite in recent years. In 1922 the receipts of anthracite were only a little more than half those of 1921. In 1925 receipts of anthracite were less than in either 1924 or 1926 by more than 2,000,000 tons. In bituminous there was a notable falling off in 1921, in 1922, and again in 1924. BITUMINOUS COAL SOURCES New England draws its supply of bituminous coal from two main producing fields, designated for convenience as the northern area and the southern area. There has been a pronounced change to the southern area in recent years. The northern area comprises the fields of Pennsylvania, northern West Virginia, and western Maryland, while the southern area includes the mines of southern West Virginia and adjacent districts in the western part of Virginia and in eastern Kentucky. Th$se two producing sections were almost equally divided in the tonnage of coal shipped to New England in 1926, the southern area exceeding the northern by the slight amount of 18,000 tons in a total of nearly 21,000,000 tons. The major portion of the coal shipped from the northern area to New England moves by all-rail routes, while practically all of that from the southern fields moves by a combination of rail and tidewater routes. The most important district in the northern area is that compris- ing the Clearfield and adjacent mines of central Pennsylvania, which contributed slightly over one-third of all New England's bituminous supply, and over two-thirds of that from the northern fields. More than four-fifths of the coal moving to New England by all-rail routes was from the central Pennsylvania region. Other districts in the northern area that shipped considerable quantities of coal, all rail, to New England in 1926 were the Greensburg, Westmoreland, and Connellsville districts, which shipped over 750,000 tons, and the Pittsburgh, Panhandle, and Westmoreland districts, which shipped about the same amount. A small quantity of the coal from these northern fields moved by rail to the ports of Philadelphia and New York, and thence by tidewater to New England. Northern West Virginia and western Maryland, which contributed something over 5 per cent of the entire bituminous movement in 1926, send their coal chiefly by rail to the port of Baltimore, and thence by tidewater to New England. Coal shipped to New England from the southern area comes chiefly from the Pocahontas, New River, and Kanawha fields of southern West Virginia. Their distances irom New England are SOURCES and MOVEMENT BITUMINOUS COAL INTO NEW ENGLAND 1926 NORTHERN FIELDS I . Central Pennsylvania (Clear field and. adjacent fields) S. Northern W.Virginia (Fairmont and adjacent fields) 3. Connellsvllle 4. Westmoreland 5. Greonsbura, 6. Pittsburgh .Youghiogheny and Panhandle 7. Northern Pennsylvania 8. Cumberland and Piedmont ■9. Somerset and Meyersdale SOUTHERN FIELDS 10. Pocahontas 1 1 . New River and Winding Golf 12. Kanawha 1 5. Thacker, Kenova and Logan 14,. Tug River and Southwestern Vi'rgi MOVEMENT ''■' ' ' To Rail Gateways ■'•■'•■ • To Water Gateways < 1 Tidewater NEW EN GLAND SURVEY U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division 61232°— 30. (Face p. 118.) NI'.W ENGLAND FUEL SUPPLY 119 too great to admit of all-rail shipments in competition with the northern fields ; hence practically all the shipments to New England from this southern section are by rail to tidewater at Hampton Roads and thence by vessel to New England ports. The movement from the southern fields, comprising more than half the total bituminous ship- ments to New England, makes up more than four-fifths of the total movement by tidewater. The remainder, amounting to less than one-fifth of all shipments by tidewater, moves from the nprthern field through the ports of Baltimore, New York, and Philadelphia. The southern movement by tidewater in 1926 amounted to upward of 10,500,000 tons, moving through Hampton Roads, while that mov- ing through the ports from the northern field was less than 2,500,000 tons. The following table shows the total bituminous movement to New England from 1916 to 1928 and the amount by tidewater and by all- rail routes, as reported to the United States Bureau of Mines, together with averages for the eight years frpm 1921 to 1928 and for the five years from 1916 to 1920. Since 1921 the tidewater move- ment has averaged better than 62 per cent of the total, while for the five years previous it was 53.5 per cent of the total movement. In 1920 it was only 46 per cent, while in 1927 it was nearly 68 per cent, and was upward of 60 per cent in every year but one since 1921. Total Movement of Bituminous Coal to New England by Tidewater and by All-Rail Routes, 1910-1928 [In thousands of short tons] Year Total By tidewater route Quantity Per cent of total By all-rail routes Quantity Per cent of total 1928 1927_. 1926 1925__ 1924 1923 1922 1921 8-year average, 1921-1928. 1920 1919 1918 1917 1916 5-year average, 1916-1920. 19, 651 22, 426 20, 994 21, 220 18, 473 23,008 16, 704 17, 233 19, 964 22, 663 18, 040 27, 171 23, 504 24, 122 23,100 13, 176 15, 194 12, 949 13, 463 11, 488 13, 374 10, 892 12, 435 10, 456 8,385 16, 058 12, 692 14, 193 12, 357 67.1 67.8 61.7 63.5 62.2 58.1 65.2 51.4 62.2 46.1 46.5 59.1 54.0 58.8 53.5 6,473 7,232 8,045 7,756 6,985 9,634 5,812 8,374 7,539 12, 207 9,655 11, 114 10, 811 9,929 10, 743 32.9 32.2 38.3 36.5 37.8 41.9 34.8 48.6 37.8 53.9 53.5 40.9 46.0 41.2 46.5 MOVEMENT FROM NORTHERN FIELD Upward of three-quarters of the total bituminous movement into New England from the northern field in 1926 moved by all-rail routes, passing through four principal rail gateways at the Hudson River crossings. Over 35 per cent of the total rail movement passed through Maybrook, N. Y., destined mainly for points on the New Haven 120 INDUSTRIAL STRUCTURE OF NEW ENGLAND Railroad system. About 19 per cent moved through the junction point at Harlem River. Nearly 55 per cent of the total all-rail move- ment thus passed through these gateways into southern New Eng- land, 25 per cent passed through Albany, N. Y., and about 20 per- cent through Mechanicville and Troy, destined for New England points served by the Boston & Albany Railroad and the Boston & Maine. This includes a small movement through Rouses Point. The gateways at the exit of the Mohawk Valley thus account for 45 per cent of the total all-rail movement of bituminous coal into New England. The importance of these rail routes and of the tidewater routes in shipments from the northern field into New England is shown for 1926 in the following table. Routes of Bituminous Coal from Northern Field into New England, 1926 Route Tons Per cent of all-rail or tidewater Per cent of total northern Per cent of total north- ern and southern All-rail: Maybrook . 2, 853, 485 2, 040, 961 1, 604, 130 1, 546, 207 35.5 25.4 19.9 19.2 27.2 19.5 15.3 14.7 13.6 Albany . _ - 9.7 Mechanicville and Troy . .. - - 7.6 Harlem .. 7.4 Total all-rail 8, 044, 783 100.0 76.7 38.3 Tidewater: Baltimore . 977. 472 972, 945 492, 667 7.5 7.5 3.8 9.3 9.3 4.7 4.7 4.6 Philadelphia - - - - 2.3 Total tidewater . _ - 2, 443, 084 10, 487, 867 18.8 100.0 23.3 100.0 11.6 Total rail and tidewater - -_ 49.9 Source : Massachusetts Special Commission on Necessaries of Life for figures on rail " and Bureau of Mines for " Tidewater." 'All- The general location of the coal fields which supply New England and the routes taken by coal shipments by rail and water, together with the proportions of the total movements that go by each of the indicated routes, are shown in Figure 11. A general summary of all the bituminous coal shipments to New England, showing the volume and the percentage from the different fields, classified by rail and by tidewater, is given in the following table. NEW ENGLAND FUEL SUPPLY 121 Summary of All Bituminous Shipments to New England in 1926, by Sources and Routes Total rail and tide- water shipments Total rail shipments 1 Total tidewater shipments Field and route Tons Per cent, of all ship- ments Per cent of ship- ments from field Tons Per cent of all rail ship- ments Per cent of total rail and water Tons lYr cent of all tide- water Per cent of all ship- ments NORTHERN FIELDS Central Pennsylvania (Clearfield and adjacent fields) 7, 170, 050 1, 085, 447 765,290 754, 883 303, 288 286, 733 122, 176 34.1 5.2 3.6 3.6 1.4 1.4 .6 68.4 10.3 7.3 7.2 2.9 2.7 1.2 6, 516, 274 94, 929 620, 253 405, 457 303, 288 104, 582 81.0 1.2 7.7 5.0 31.0 .5 2.9 1Q 653, 776 990, 518 145, 037 349, 426 5.0 7.7 1.1 2.7 3 1 Northern West Virginia 4 7 Qreensbur?, Westmoreland, and Connellsville Pittsburgh, Youghiogheny, and Panhandle. .7 1 6 Northern Pennsylvania. 3. 8 1. 5 1. 3 .5 Cumberland, Piedmont, Myers- dale, and Somerset . 182, 151 122, 176 1.4 .9 9 Other fields .6 Total northern __ 10, 487, 867 49.9 39.7 7.3 2.9 100.0 79.4 14.0 5.9 8, 044, 783 100.0 38.3 2, 443, 084 8, 336, 819 1, 542, 065 626, 971 18.9 64.4 11.9 4.8 11.6 SOUTHERN FIELDS Pocahontas and New River 8, 336, 819 1, 542, 065 626, 971 39.7 Kanawha ... _. 7.3 Other fields . 2.9 Total southern 10, 505, 855 50.0 100.0 10, 505. 855 81.1 50.1 ... Grand total „__ __ ._ 20, 993, 722 100.0 8, 044, 783 12. 948, 939 100.0 1 In 1926, on account of the anthracite miners' strike, a considerable tonnage moved into New England all-rail from the southern fields ; since then they have supplied no all-rail shipments of coal. AREAS SERVED BY DIFFERENT FIELDS Competition between the tidewater coal from the southern field on the one hand, and the coal from the northern field moving either by all-rail routes or through the ports of New York, Philadelphia, and Baltimore, and thence by water, is determined by the relative costs of transportation and by the quality of coal desired by con- sumers. Transportation from the southern field involves movement by rail from the mines to Hampton Roads, and thence by barge or steamer to New England ports. The tidewater movement from the northern field involves, similarly, rail transportation from the mines to the ports of New York, Philadelphia, or Baltimore, and thence by barge to the port of destination. Cost of transportation therefore includes railroad freight from the mine to the shipping port, the water rate to the port of arrival, cost of unloading barges, and freight charges from the port to the interior point of consumption. The distance to whiph tidewater coal can be shipped inland from the port of arrival in competition with all-rail movement varies with the relation between the through all- rail rate from the mine and the local rail rate inland from the port. Variation in the costs of coal at the mine resulting from labor costs, as well as the variation in cost of transportation from the respective 122 INDUSTRIAL STRUCTURE OF NEW ENGLAND northern and southern fields, prevents a definite fixing of limits to the territory served by each. The requirements of consumers also are variable for the different kinds of fuel furnished by different fields. New England manu- facturers prefer coal of low volatility for steam purposes as well as for domestic consumption, while the more highly volatile coal is generally used for gas manufacture and by the railroads. Coal that moves by tidewater is considerably broken up by the extra handling incident to loading and unloading in vessels, whereas coal shipped by all-rail routes is much less broken. While some con- sumers prefer the smokeless coal from West Virginia and others have a decided preference for Pennsylvania coal, the choice of many is governed only by the relative price and service offered. The higher grades of coal from the Pennsylvania field enter into keen competition with coal from the southern West Virginia field in the principal fuel-consuming sections of New England where one source does not have advantage in transportation cost over the other. In general, the market for tidewater coal extends along the New England coast to include the port cities and reaches inward to points where the cost of transportation inward from the New England port offsets the advantage of the water route over the all-rail route. This usually extends from 15 to 40 miles from the port, although tide- water shipments are made into the interior as far as Worcester and Springfield. The tidewater coal from the southern field enters into competition with the all-rail coal from the northern field, principally in the industrial regions extending along the coast eastward from New London, Conn., reaching back into the interior 25 to 40 miles. West of New London the consuming region bordering on Long Island Sound and along the Connecticut River obtains its coal chiefly by tidewater from the northern field, transported in shallow barges from the New York Harbor piers. East of New London the coast is served both by vessels from the southern field moving by way of Hampton Roads and by barges from the northern field moving by way of Baltimore and Philadelphia. In recent years coal from the southern fields has penetrated farther into the interior. This is due not only to the high qualities of the coal from the southern mines but to the greater regularity and de- pendability of supply in consequence of labor difficulties in the northern mines. The southern operators have made special efforts to render service to their New England customers, and as a result shipments from the southern field have increased while those from the northern field, by rail and by tidewater, have declined. The State of Connecticut gets practically all its coal supplies from the northern field, since the southern coal can not compete with that from Pennsylvania. Most of the State receives its coal by the all- rail route. New Haven is the only commercial port in Connecticut with facilities for deep-water steamers, and water-borne coal for all oilier Connecticut ports goes by barge, even to the larger ports of Hartford, Bridgeport, Norwalk, and New London. Very little bituminous coal is now shipped from New York harbor to points beyond Bridgeport and New Haven. NEW ENGLAND FUEL SUPPLY 123 In Rhode Island most of the supplies come from the southern field, although some consumers, even close to tidewater, use all-rail coal from Pennsylvania. In some years large amounts of Welsh anthra- cite have been brought into Rhode Island for household uses. The southern and eastern parts of Massachusetts get the major portion of their supply by tidewater from the southern field, and a considerable amount from the northern field by tidewater from Bal- timore and Philadelphia. The interior and western parts, of the State depend upon all-rail coal from the northern field. In Vermont and in the interior of New Hampshire, coal from the northern field dominates the situation entirely, since the southern field can not compete there with the all-rail shipments. In Maine, however, coal from the southern field can be brought in at tidewater rates that are lower than those by all-rail routes from the northern field. The principal consumption is in the southern section of the State ; only a negligible portion goes to eastern and northern Maine. The total coal consumption of the State does not exceed 2,000,000 tons a year, and one-third of this is high volatile coal for railroad and gas purposes, which comes from the northern field. TRANSPORTATION RATES Freight rates by all-rail routes to New England are based on those from the Clearfield district. This is the principal rail source for New England's bituminous supply. It is nearer to New England than any other portion of the northern region and has a lower rate than any other field. The Greensburg district, averaging 47 miles farther than Clearfield, adds 10 cents a ton to the Clearfield rate, while both the Westmoreland and the Pittsburgh district, still far- ther distant, take an additional 40 cents a ton over the Clearfield rate. The following table shows the rail distances from the Clearfield dis- trict of Pennsylvania to representative consuming points in New England, with the rates now in force. Rail Distances and Rates from Clearfield District Destination Distance in miles Rate per ton Destination Distance in miles Rate per ton Boston, Mass __ _. 563 487 581 551 536 $4.22 4.07 4.83 4.45 4.20 New Haven, Conn.. 424 452 646 617 658 $3.59 Springfield, Mass New Britain, Conn 4.07 Lowell, Mass__ Bellows Falls, Vt 4.60 Framingham, Mass. Manchester, N. H 4.95 Providence, R. I_ Portland, Me 4.85 The northern carriers publish all-rail rates to all points in New England. These rates are much lower than any possible rates by all- rail routes from the southern district. This is shown in the follow- ing table by a comparison of the approximate all-rail distances to the New England gateways from the Clearfield district, in the northern region, and from the Pocahontas district, in the southern region. 124 INDUSTRIAL STRUCTURE OF NEW ENGLAND Rail Distances to New England Gateways Gateway From Clearfield district From Pocahontas district Albany, N. Y Miles 381 386 326 656 340 Miles 746 Mechanicville, N. V ' . . _ . 752 May brook, N. Y . ___ _ * . 612 Portland, Me _ ".,..,„.,..,.,. . 933 Greenville, N. J J. . . ._ - 604 The carriers publish also transshipment rates from the northern field to tidewater at Philadelphia and Baltimore on coal moving to New England by water craft destined to points east of New London, as well as tidewater transshipment rates to New York Harbor in- tended to take care of New York Harbor deliveries and deliveries at Long Island Sound. For coal moving from the southern field by way of Hampton Eoads the southern carriers publish tidewater rates to deep-water piers in New England. The base- rate from mines in the southern area to tidewater is $2.52 a gross ton; the steamer freight rate from Hampton Roads to New England ports in recent years has ranged from 75 cents to $1 a ton on large tonnage. Added to this is a charge of 35 to 60 cents a ton for discharging vessels into cars, and a weighing charge of 1 to 3 cents additional. The average distances of transportation to tidewater ports from the southern coal districts, in comparison with distances from the northern district to tidewater, are as follows. Miles From southern fields base-rate area to Hampton Roads 416 From Clearfield to port of — New York 350 Philadelphia 305 Baltimore 249 MARKETING The marketing of coal to industrial users in New England does not vary greatly from that in other sections of the country. The larger coal operators have their representatives in Boston and other important cities making contracts with the large manufacturers for direct shipment from mines to the manufacturers' plants, either by all-rail or by rail-and-water routes. The representatives of the southern operators confine their activities to regions near the coast, in which tidewater coal can meet the competition from the northern field. Most of the coal from the southern field is transported to New Eng- land in large steamers or barges to ports which have modern facilities for discharging and considerable storage capacity. The principal deep-water ports served by the southern field are Providence, Fall River. New Bedford, Boston, Salem, Portsmouth, Portland, Bath, and Bangor. Some of the larger shippers from the southern field own or control their wharves and docks, and some of these docks are owned by wholesale or retail dealers. The smaller industrial con- NEW ENGLAND FUEL SUPPLY 125 sumers buy their coal from local wholesale dealers, who in turn pur- chase their supplies through the operators' agents. The elements of cost entering into the price to the consumer on all- rail shipments are base cost at the mine, plus freight charges from the mine to the manufacturer. For tidewater shipments the factors are freight charges from mine to tidewater port, water rates to landing port, unloading charge, and rail freight from port to plant: The latter item is sometimes eliminated by consumers who truck direct from landing port to their plant, this being practiced in some in- stances as far as 30 miles from the port. ANTHRACITE AND OTHER HOUSEHOLD FUELS ANTHRACITE New England householders depend chiefly upon anthracite coal for domestic fuel. More anthracite is consumed per capita than in any other section of the country. This fuel embodies the advan- tages of cleanliness, little smoke, and easy control. New England householders show pronounced preference for it, and use other coal only when anthracite can not be obtained. In consequence of the high price and restricted supply of anthracite in recent years, how- ever, consumers have turned more and more to the higher grades of bituminous coal, to coke, briquets, and, to a lesser extent, to gas, fuel oils, and electricity. Receipts of anthracite in New England exceeded 10,500,000 net tons in 1926, comprising approximately one-third of the total coal receipts for that year. The 6-year average from 1921 to 1926 was 9,921,000 net tons. For the five years prior to 1921 the annual aver- age was 11,570,000 tons. It is thus apparent that New England con- sumers in recent years have had to resort in considerable measure to other fuels. The production of anthracite in the past 15 years has not kept pace with the increase in the anthracite-consuming popula- tion, and consequently it has been necessary to depend upon other sources of household fuel. On the basis of actual heat value, at current price anthracite coal is a much less economical fuel than bituminous. The high cost, the high slate and ash content of anthracite, and its slow response to change in drafts, are counterbalanced in bituminous by considerably lower cost, competitive sources of supply, quick responses to changes of drafts, lower percentage of inert matter, and high heat content. The dirt and smoke of bituminous coal and the closer attention re- quired in burning it prevent its more general household use. Also, the mechanical construction of boilers and heaters, with their small flues, sometimes gives difficulty in burning bituminous coal. Conse- quently much educational effort has been necessary to bring New England consumers to change from the use of anthracite. In the last few years, however, the domestic consumption of bituminous coal has been very materially increased. It was estimated that during the coal year 1926-27, about 600,000 tons of coal of low volatility were sold in Massachusetts for heating apartments and other dwellings. Most of this coal was' run-of-mine sizes, but the smaller consumers made use of the prepared sizes. A large additional tonnage of bituminous was used for heating offices and other large buildings. 126 INDUSTRIAL STRUCTURE OF NEW ENGLAND All the anthracite coal comes from the hard-coal regions of eastern Pennsylvania. Approximately two-thirds of the shipments are by all-rail routes, and about one-third is by tidewater by way of the ports of Philadelphia and New York. On account of strikes there has been pronounced fluctuation in the annual shipments to New England. In 1922 the total was less than 6,500,000 tons, and in 1925 it was somewhat above 8,250,000 tons. COKE Coke is becoming increasingly important as a domestic fuel in New England. Its consumption for household uses in Massachusetts alone during the coal year 1926-27 was estimated at 475,000 tons, as compared with 270,000 tons in 1924r-25. Most of the coke sold in New England is supplied by local by-product and coal-gas plants. Its price per ton is ordinarily below that for anthracite, and by using coke in conjunction with the lower-priced steam sizes of anthracite a good fuel is obtained at lower cost. The frequent attention required by a coke fire, and the bulkiness which makes coke somewhat difficult to handle, are offset by advantages of cleanliness, quick response to change of drafts, and a fairly high heat value. The manufacture and marketing of coke suitable for domestic purposes has in recent years received increased attention. FUEL OIL Fuel oil has the advantage of convenience and high heat value besides requiring little attention and small space for storage. Its disadvantages are relatively high cost and the necessity of special storage equipment and of special burning mechanism. Various types of fuel-oil burners have been placed on the market in the last few years. The amount of fuel oil used for heating buildings in 1926 was 3,150,000 barrels, comprising about 15 per cent of the total quantity distributed in New England. Most of this, however, was used in commercial heating, and only a small fraction for the heat- ing of homes. The total consumption for heating purposes in 1926 was more than double that of 1925, when the total for heating buildings was 1,311,000 barrels, exclusive of furnace oils and the lighter distillates. In the past few years of coal shortage there was heavy consumption of crude oil as fuel by manufacturing plants and by public-utility power companies in various parts of New England. Since no crude oil is produced in New England, the entire supply for this section comes from other domestic and foreign sources, and is brought in by tankers from California, the Gulf coast, or foreign ports. From the crude oil are manufactured the usual proportions of gasoline, kerosene lubricating oil, gas oil, and fuel oil. The total distribution of fuel and gas oils in the six New England States in 1925, as compiled by the United States Bureau of Mines, was 251.048.000 barrels of 42 gallons each. Of this amount about 60 per cent, comprising 13,604,000 barrels, was brought in during that year by tanker from other- refining districts; the remaining 40 per rent, amounting to 8,042,000 barrels, was produced in New England refineries. The principal refineries are in metropolitan Boston, Providence, and Fall River. NEW ENGLAND FUEL SUPPLY 127 The consumption of fuel oil in New England was reported to have increased from 101,500,000 gallons in 1918, which was equivalent to 615,000 net tons of coal, to 674,271,000 gallons in 1922, equivalent to 4,086,000 net tons of coal. No figures are available as to the amount which was used for heating alone. GAS AND ELECTRICITY t Improvement in the methods of producing and using gas and elec- tricity has brought about a great increase in their consumption for fuel. Total sales of gas in Massachusetts increased from about 16,- 000.000,000 cubic feet in 1923 to about 25,000,000,000 cubic feet in 1925. In the same period the consumption of electricity increased from 338,000,000 to about 2,500,000,000 kilowatt-hours. It was esti- mated that in 1926, 1,000 homes in Massachusetts were being heated by gas fuel. Since gas for illuminating purposes has been largely superseded by electricity, the gas companies are turning to the domes- tic and industrial fields for a market. WOOD Wood is commonly used for heating and cooking purposes in the wooded rural sections of New England, where it is produced locally. Most of the farm homes of northern New England use wood for household fuel. In the urban communities it is used only as kindling or as a supplementary fuel in fireplaces. IMPORTATIONS OF FUEL New England has imported from other countries in some years considerable quantities of coal — both anthracite and bituminous — and coke. The principal volume of imports has consisted of anthracite, largely from Wales. This amounted in 1926 to 386,000 tons, valued at $3,250,000. Imports of coke in 1926 were about 85,000 tons, valued at upward of $500,000. Imports of bituminous coal have been slight since 1923. During that year and the preceding year nearly 3,000,000 tons were imported into New England, most of it coming in free of duty. Since 1923 the highest imports of bituminous in any one year were 62,000 tons in 1926. Recently there has been a considerable importation of briquets, mainly from Germany, the value in 1926 approaching $500,000. NEAR-BY SOURCES OF FUEL In eastern Nova Scotia there are abundant supplies of bituminous coal accessible to tidewater and within easy shipping distance from New England ports. The relatively high cost of mining this coal under present conditions, in comparison with that in the United States fields, and its lower quality in comparison with that of Penn- sylvania or West Virginia, have prevented the recent importation of fuel from this near-by source to any important extent. In southeastern Massachusetts and Rhode Island there is an area of approximately 500 square miles known as the Narragansett Coal Basin, which is underlain with thin veins of a graphitic form of an- 128 INDUSTRIAL STRUCTURE OF NEW ENGLAND thracite coal. The area is approximately equal to that of the anthracite coal beds of Pennsylvania, but the veins are of varying thickness and they occur at widely variable depths, cropping out to the surface in a few places. On account of the high ash content of this coal and the expense entailed in mining the narrow and irregular veins in which it occurs, this Narragansett coal has not yet proved to be of commercial importance, although it has been mined and used locally at a few places. The great advance in the cost of coal in the last few decades, in consequence of high transportation costs and increased mining ex- penses in the present fields of supply, has directed attention recently to the possibilities of this Narrangansett Coal Basin. Some author- ities believe this may become a commercially important source of fuel for New England, so that the large annual payments to other sections of the country may be cut down. Proposals have been made to use these deposits industrially by subjecting the coal to special treatment at the mines and using it there for power development. In addition to the uncertainty of such an outcome and the high capital outlay involved, the development of these sources is handicapped by the absence of special mining legislation and by the large number of title holders to small-surface areas. Part III.— THE PEOPLE OF NEW ENGLAND New England has a higher proportion of city dwellers than any other major geographical section of the country. It has the great- est percentage of foreign born and people of foreign stock. Other characteristic features are presented here which portray the relation- ship of the New England population to the industrial life of the region. The plan is first to show the distribution of the present population in the different sections and communities. An analysis is then pre- sented of the make-up of the New England population, with particu- lar consideration of the various foreign racial elements. Brief con- sideration is given also to a comparison of age and sex groupings within New England. Finally, the trend of growth in the New England population is considered as a whole and in respect to dif- ferent sections within the area. NUMBER AND DISTRIBUTION It is difficult to give an accurate picture of the present population of New England, on the eve of the Federal Census of 1930, since reliance must be placed upon statistics of 1920. The reader should bear in mind that various population changes have taken place in New England within this interval. The estimated population of the six New England States, as of July 1, 1927, was somewhat in excess of 8,100,000. According to the census of 1920 the population in that year was 7,400,909, com- prising 7 per cent of the population of continental United States. At that time New England, which has only 2.1 per cent of the land area of the country, contained almost as many people as there were in the million square miles between Denver and the Pacific coast. The following table gives the population of the States of New Eng- land as of 1920, together with estimates for 1925 and 1927, including figures from the 1925 State census of Massachusetts and of Rhode Island. Population of Individual States of New England *- State 1920 1 1925 1927 2 Connecticut __. . _ 1, 380, 631 768, 014 443, 083 3, 852, 356 604,397 352, 428 2 1, 572, 000 2 787, 000 2 452, 000 3 4, 144, 959 3 679, 260 2 352, 428 1, 636, 000 Maine 793,000 New Hampshire.. - 455,000 Massachusetts 4, 242, 000 Rhode Island 704,000 Vermont . _. 352, 428 Total 7, 400, 909 7,987,647 8, 182, 428 1 United States census of 1920. 2 Estimate, Bureau of Census, for July 1. 3 State census. 129 130 INDUSTRIAL STRUCTURE OF NEW ENGLAND RELATIVE DENSITY New England as a unit is one of the most densely populated regions of the United States. In 1920, with a density of 119.4 persons per square mile, this region was three and one-third times as densely DENSITY of POPULATION IN NEW ENGLAND COUNTIES )* NEW ENGLAND 'SURVEY U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division Figrure 12 populated as the United States as a whole, and the 1927 estimate increases the figure to L32 persons per square mile. To distribute the inhabitant of tfeew State- in a' >■• ^« s* \ FOREIGN BC ?/?/V i* •^ NEW EN6I At W ^ j.' / y* _A f 1850 I860 1870 1880 1890 1900 1910 1920 (0- 1930 4229 4( o Figure 14. — Growth of native-born and foreign-born population in New England and in the United States as a whole interval its foreign-born population increased sixfold. Native born in 1920 constituted only about 75 per cent of the total New England population. The change has been radical in each of the New Eng- land States except Vermont, and has been pronounced in Connecticut 144 INDUSTRIAL STRUCTURE OF NEW ENGLAND and New Hampshire, while Vermont has experienced even less change than the country as a whole. Figures of native population and of foreign born in 1850 and in 1920, for the New England States and the Nation as a whole, are shown in the next table. MILLIONS 200 100 80 60 50 40 30 20 10 6 5 4 3 2 1 N/> SITEL ? 57 ATEL > TO TAL ,*• +* '' ^> '* 4* + >* *" -^ ~' >' ^ ^ S V6£A NO j r 0TA L o a t— o o CO o CO o CO o CO o CO o m CO o CO o 00 o CO CO o CD CO o o CO o CD <* o cp -^ -42* O m en ; Figure 15. — Trend in growth of population in New England compared with trend in the United States as a whole Native and Foreign-Born Population in the United States and in New England, 1850 and 1920 J. State Native Foreign -born Native as per cent of total 1850 1920 1850 1920 1850 1920 United States 20,912,000 2, 417, 000 91, 789, 900 5,515,000 2, 244, 600 306, 200 13, 920, 700 1, 886, 000 90.2 88.6 86.8 New England 74.5 Maine 5.50,900 303, 500 280, (XX) 827, 400 123,600 381,000 M0, 200 351,700 307, 900 2, 763, 800 420, 200 1,002,200 31,800 14,300 33, 700 164, (XX) 23, 900 38, 600 107.8(H) 01,400 44, 600 1,088, 000 175,200 378, 400 94.5 95.2 89.2 83.2 83.7 89.4 86.0 \ a w Ha ED pshire 79.4 Vermont - 87.4 etts 71.7 Rhode i land 71 ( tannectlcat... 72.6 Source: U. S. Bureau of the Census. THE PEOPLE OP NEW ENGLAND 145 Since 1790 the population of New England has increased at the average rate of a half million per decade. At the time of the first Federal Census New England had 1,009,408 inhabitants. In the next 60 years, ended in 1850, its population increased by 1,700,000. From 1850 to 1890 there was an increase of nearly 2,000,000. The increase in the three decades from 1890 to 1920 averaged about 900,000 in each 10-year period. On account of the territorial expansion of the Nation southward and westward, the rate of increase of population in the country as a whole since the first Federal Census has been much greater than that for New England. Up to 1890, the Nation's rate of increase in nearly MILLIONS 5 4 3 2 1 .8 .6 .5 .4 .3 .2 .1 -MA55A :hu5H T5^>* >^ .-»• CfiNNFrT/rfJ 7 \ *+•* fifd/M ^•^ r .*«■•«■ w*** _«~- -a**"^ ** ' ^.<+ ,••••* ,••• f .'* NEW MMPSMRE\_ •*•* U/»ft«^ •Wd^tf ******* 4 *H*H »+■ ZRNON'i . H-»<-H *"H W-t «-H 3^*" ,.-••• ...-••■' - \y A r •• Vyf/ya 0E ISLA ND 1840 1850 ' I860 1870 1880 ' 1890 1900 ' 1910 ' 1920 1930 (D-D-4228-46) Figure 16.. — Relative growth of population in individual States every decade was more than twice as great as the growth in New Eng- land. Since 1890, which marked the end of the period of great na- tional expansion and settlement, the Nation's rate of growth has come to be practically the same as that of New England. CONTRASTS WITHIN THE AREA A striking contrast has existed between the rate of growth of the three States of northern New England and that of Massachusetts, Rhode Island, and Connecticut. In northern New England, where manufacturing has never assumed importance, the rate of growth exceeded that of the Nation in most of the decades up to 1840. Since that time it has been continuously less. New Hampshire, the most highly industrialized State in this northern group, showed nearly a 10 per cent increase in a single decade, but the other two States re- 146 INDUSTRIAL STRUCTURE OF NEW ENGLAND mained at practically the same level for several decades. This con- dition of rapid early growth in these northern States, followed by a slowing down in later years to less than the national rate, is char- CHANGE in POPULATION NEW ENGLAND COUNTIES (1/ U. S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division Figure 17 acteristic of sections in which agriculture and other extractive indus- tries are the major activities. In southern New England the rate of population increase since 1840 has been approximately the same as that for continental United States. Id the period since 181)0 it has risen somewhat higher. The THE PEOPLE OF NEW ENGLAND 147 growth of population in southern New England has run generally parallel to its industrial expansion. Contrast between the northern and the southern States in rate of growth may be seen in Figure 17, showing the percentage of change in individual counties from 1910 to 1920. During this interval every county in the three southern States showed an increase, with the exception of the nonindustrial Cape district of Massa- chusetts. There were 6 counties whose population increased more than 25 per cent, and 5 others in which the increase exceeded 15 per cent. In the 40 counties of northern New England, on the other hand, there were 18 whose population decreased, and there were 13 others in which the increase was less than 5 per cent. The northern- most county of Maine increased 9.5 per cent as a result of the expan- sion of potato growing in that section ; and the northernmost county of New Hampshire showed an even greater increase — 17.4 per cent — a result of the establishment of paper mills in that section. With these exceptions, all the counties in the three northern States whose popula- tion increased more than 5 per cent in the decade from 1910 to 1920 were located along the southern border of those States and within the industrial belt of New England. Part IV.— MANUFACTURES INTRODUCTORY The commerce of New England depends primarily upon the activi- ties of its mills and factories, and the concentration of manufacturing in this great industrial section gives it outstanding national impor- tance. New England industries provide great consuming markets for raw materials and industrial equipment. The products of these industries contribute in turn an important part of the goods that enter into the commerce of the Nation. An outstanding charac- teristic of New England economic life is the high proportion of its population whose incomes depend upon manufacturing. These incomes are expended, in large measure, to buy the products of other sections. An adequate commercial survey of New England requires, therefore, a broad knowledge of the manufacturing activities upon which its commercial life so largely rests. Because of the lack of native raw materials, New England industries provide great consuming markets for the raw or semifinished products of other sections of the country. This region contains the principal wool market of the United States. The Nation's leading hide and leather market is located in New England. A substantial part of the American cotton crop is consumed by its textile mills. The region is important as a consumer of the ferrous and nonferrous metals. A great portion of the food consumed by its industrial population is produced in other parts of the United States. New England also has to look to outside sources for its fuel supply. Its industries provide a great consuming market for coal to supply heat and power for its manufacturing processes. It consumes great quantities of petroleum products from outside sources. The extent of the depend- ence of New England upon sources outside its own borders for food, fuel, and raw materials for manufacture is indicated by the fact that the total tonnage of its inward shipments is about six times that of its outward shipments. 1 As an offset for the great consuming market provided to the rest of the country for raw and partially finished products, New England factories and mills contribute a high proportion of the stock of many manufactured articles consumed in other sections. With only 7 per cent of the Nation's population, the manufacturing activities of the New England States contribute 11 per cent in the national income derived from manufacturing. In a number of important lines New England contributes well over half the entire national production, ana there is a long list of articles in which its contribution far exceeds the share indicated by its population. i Bee Externa] Trade of New England, by It. J. McFall, Domestic Commerce Series No. 22. J IS MANUFACTURES 149 The industrial maturity of this great manufacturing region is indicated by the highly fabricated nature of its manufactures. It is distinguished as a region of fine manufactures. Its products are turned out mainly in finished form ready for the ultimate consumer. These products are highly individualized articles rather than those which lend themselves readily to great mass production. Manufacturing is the keystone of New England's commercial structure. The prosperity of this region rests mainly upon the activity of its factories and mills. The first part of this section presents a summary of New England manufactures as a whole, giv- ing a view of the nature and extent of manufacturing activity, its trend of development, and its importance in different localities within New England. Considerable place, however, is given to a detailed consideration of individual lines of manufacture, discussed under the various major groups. The summaries of individual industries embody ex- periences of upward of 5,000 manufacturing plants, representing more than half the volume of all New England industries. The facts thus brought to light show how manufacturers have been deal- ing with conditions in the recent years of pronounced changes and adjustment. It is to be borne in mind that the rapid changes that have been taking place have resulted in substantial advances and improvements in many lines since these conditions were reported. COMMERCIAL SIGNIFICANCE The present treatment considers manufacturing activity as a source of income to the people of New England. The analysis is con- cerned mainly, therefore, with the contribution which the manufac- turing processes make to the region. For this purpose the gross value of products is not a satisfactory measure, because only a part of this value is actually created within the industry. A large part of it is contributed by the value of the materials used. Moreover, the cost of materials contains a great deal of duplication on account of repetition in the different stages of manufacture. For indicating the importance of the manufacturing processes as a source of income to the people of New England, therefore, the value added by manufacture is much more accurate. This is calculated by deduct- ing the cost of materials used from the value of the products. The value added by manufacture is used as the main basis of discussion throughout this analysis. The income of the people of New England from manufacturing activity in 1927 was approximately 11 per cent of the total national income from this source, the total value contributed by all its manu- facturing processes, outside of the cost of materials, approaching $3,000,000,000. This net income is to be distinguished from the gross value of all products of New England manufacture, including the cost of materials, which aggregated over $6,000,000,000 and com- prised 9.6 per cent of the gross value for the entire United States. The per capita income from manufacturing in New England, derived by dividing the total value added by the estimated population, was approximately $364, while for the rest of the country, outside this area, it was $223, a difference of $141 per capita in favor of New Eng- 61232°— 30 11 150 INDUSTRIAL STRUCTURE OF NEW ENGLAND land. This indicates the outstanding importance of manufactures to the well-being of this section. The extent of the market provided by New England industries for goods purchased from outside sources or from within New England is shown in a rough way by the total cost of materials used in its manufactures. This market for materials amounted, in 1927, to $3,048,863,000, representing 9 per cent of the total United States outlay for manufacturing materials. This outlay includes the cost of purchased fuel, power, and supplies used in the various manufac- turing processes, in addition to the cost of raw or semifinished materials. The highly processed nature of New England manufacturing and its dependence on human labor are indicated by the high propor- tion of its wage earners and by the relationship of its wages to the United States total. The average number of workers on New England manufacturing pay rolls in 1927 was 13.2 per cent of the total number so employed throughout the United States, whereas New England's proportion of the total population was less than 7 per cent. In other words, there were 13 wage earners employed in manufacturing in every 100 persons of the New England population, while for the Nation as a whole, outside New England, there were only about half this number (7 persons) so employed in each 100 of population. The contribution of this section to the livelihood of wage earners is also distinctly higher than its proportion in the na- tional manufacturing output. The total wage payments of New England manufactures, aggregating $1,328,650,000 in 1927, repre- sented 12.3 per cent of the total wages paid by all manufacturing in the United States, while its share in the gross value of manufactured products was only 9.6 per cent. The general relation of New England manufacturing activity in 1927 to that of the entire United States is shown in the following table. This shows its relatively high share of wage earners and of wages paid, in proportion to the New England population, and its relatively low proportion in the total cost of materials. The value added by manufacture thus represents a considerably higher pro- portion of the national total than does the value of the product. In the number of establishments the New England proportion is about the same as its share represented by the gross value of its products New England Compared with Entire United States in Total Manufac- turing Activity in 1927 Item New England Total, United States New Eng- land's per- centage Number of manufacturing establishments Number of wage earners.. Wages paid ( ! ost of materials Value of products Value added by manufacture Population (estimate for July 1, 1927) 17, 745 1,098,748 1 , 328, f)5(), (K)() 3, 048, 863, 000 0, 028, 475, 000 2,979,(512, 000 8, 182, 428 191,866 8, 353, 977 10,848,803,000 35, 133, 137, 000 62,718,347,000 27, 585, 210, 000 118, 628, 000 9.3 13.2 12.3 8.7 9.6 10.8 MANUFACTURES 151 WAGES AND PRODUCTION IN NEW ENGLAND The next table gives figures for the four geographic divisions of States which contain the greater part of the country's manufactur- ing — New England, the Middle Atlantic division (New York, New Jersey, and Pennsylvania), the east North Central division (Ohio, Indiana, Michigan, Illinois, Wisconsin), and the South Atlantic division (Delaware, Maryland, West Virginia, North Carolina, South Carolina, Georgia, Florida). The figures show, for each of these sections and for the entire United States, average wages per wage earner, average value added per wage earner, and average value of gross product per wage earner. These averages per wage earner are derived by dividing the figures for total wages, total value added by manufacture, and total value of product, respectively, in each geographic division, by the total number of wage earners for that division, as reported in the 1925 census. It is to be borne in mind that no allowance is made for possible differ- ences in the proportion of men and women employed in these different sections, nor for differences in the type of work performed. Neither are differences in regularity nor seasonality of employment consid- ered, such as might result from strikes or seasonal activity. It should be borne in mind also that these figures take account of a single year only, in which special conditions may have been significant in some sections. The average wage per wage earner shows the average compensa- tion which the individual worker receives for all manufacturing in a given region. The average value added per wage earner shows what the effort of the individual worker contributes to the income of the region. The average value of product per wage earner indicates the value of marketable goods which is turned out as a result of the wage earner's efforts. This includes, of course, the cost of material and the value which the wage earner adds to this material. The degree to which mechanical power enters into the manufacture of goods in the different manufacturing sections of the country is shown in the lower part of this table. The average value added per horsepower is derived by dividing total value added by all manufac- turing in the region by the total installed horsepower in that region. This shows the contribution made by power equipment to the manu- facturing income of the region. The average value of product per horsepower is derived by dividing the total gross value of all manu- factured goods by the total installed horsepower in the region. This shows the gross value of marketable product for each horsepower of installed equipment. Comparison of New England and Other Manufacturing Sections in Average Production and Wages per Wage Earner and in Production per Horsepower in 1925 Annual average New England Middle Atlantic division East North Central division South Atlantic division Entire United States Average wages per wage earner __ $1, 194. 00 2, 617. 00 5, 491. 00 675.00 1, 417. 00 $1, 379. 00 3, 503. 00 7, 792. 00 863. 50 1, 920. 50 $1, 428. 00 3, 526. 00 8, 121. 00 822.00 1, 893. 50 $902. 00 2, 363. 00 5, 405. 50 574.00 1,313.00 $1, 280. 00 Average value added per wage earner 3, 194. 00 Average value of product per wage earner ._. 7, 480. 00 Average value added per horsepower 748.50 Average value of product per horsepower ... 1, 753. 00 152 INDUSTRIAL STRUCTURE OF NEW ENGLAND TYPES OF MANUFACTURES The diversity of New England manufactures is greater than is generally appreciated. New England is associated in the popular mind largely with textiles. This viewpoint has been given emphasis for so long that the general public does not appreciate the fact that textiles comprise but slightly more than one-fourth of the total in- dustrial activity of the region, and that other manufactures outweigh the importance of textiles nearly 3 to 1. Again, the prosperity of New England has been regarded by many to hang upon the boot and shoe industry; yet all the leather industries, together with all the rubber manufactures of the region, comprise less than 12 per cent of the contribution made by all of New England's factories and mills. All leather and rubber manufactures have only a little over one-third the importance of all the metal industries and less than one-half the importance of textiles. It is a fact not generally recognized that the industries in which metals are the principal material are of more significance to New England, as a source of income, than all the textile manufactures. This includes the various kinds of machinery, iron and steel manu- factures, the nonferrous metals, and jewelry. These metal industries overshadowed textiles by nearly $138,000,000 in the value added by manufacture, and made up nearly 32 per cent of the New England total in 1925. The metal-using industries thus mean more to the region as a source of income than the industries depending upon any other kind of basic material. Indeed, the metal industries account for nearly one-third of the contribution of all New England manu- facturing. The industries included under metals, textiles, leather, and rubber comprise together about 71 per cent of the total New England income from manufacturing. The remaining manufactures of New England have a collective importance greater than that of textiles, comprising 29 per cent of the New England total in comparison with 27 per cent for textiles. Paper and printing are of substantial importance, with approximately 10 per cent of the New England total. The manufac- ture of foodstuffs is of approximately equal importance to the chemical industries, these two groups together making up nearly 10 per cent additional. The contribution by other industries not included in the groups heretofore mentioned comprises somewhat over 9 per cent of the New England total income from manufactures. In the remaining groups the principal ones are manufactures in which wood is the basic material, and stone products, with respective contributions of over 3 and over 2 per cent. Miscellaneous products not included in any classified group make up a little over 3 per cent of the total. Manufactures of transportation equipment were slightly less than 2 per cent. The remaining portion, amounting to somewhat less than 2 per cent of all manufacturing, includes the products of railroad repair shops, the making of musical instruments, and tobacco manufactures. The relative importance of the major groups of manufactures, based upon the nature of the principal materials used, may be readily Been from the next table. In the last two columns the total contribu- tion of each to the New England income, as indicated in the value MANUFACTURES 153 added by manufacture, is given in dollars and in percentage of the total. The other columns afford comparisons of number of estab- lishments, wage earners and wages paid, cost of materials, and total value of the output. These groups of manufactures are made for convenience in comparing different broad types of industry. Each group contains numerous lines of manufacture which are treated separately further on in this report. The relative importance of the broad groups is shown in Figure 18. The figures for the major groups of New England manufactures afford some exceedingly significant comparisons of the number of establishments, wage earners and wages, cost of materials, and output. The number of establishments in the metal industries greatly sur- passes the number engaged in textile manufacture. Establishments engaged in making foodstuffs also exceed the number in textile manu- facture and are not greatly below the number engaged in metal manufactures. The number of wage earners employed in the textile industries sur- passes considerably the number engaged in metal manufactures. These two groups, metals and textiles, together accounted for 65 per cent of all the wage earners employed in New England manufacturing. In the amount of money paid in wages textiles surpassed the metal industries by a relatively slight amount. Each of these groups con- tributed slightly less than one-third of the total wages paid in all New England manufactures. When cost of materials is considered there is a conspicuous con- trast between the metal industries and the textile group . The total for metals was only slightly more than half the total cost of materials for the textile industries ; yet the metal industries contributed considerably more to the New England income from manufacturing than did the textiles. The value added by manufacture in the metal industries was considerably greater than its cost of materials, the latter repre- senting about 42 per cent of the total product, while value added in the processes of manufacture was 58 per cent. With textiles the condition is reversed, the cost of materials being much greater than the value added by manufacture. Materials comprised about 60 per cent of the total value of the product, while the processes of manufac- ture contributed only 40 per cent. The industries in the paper and printing group show pronounced contrasts between proportions in the number of establishments, the number of wage earners, and the value of the output. There is a relatively high proportion in the number of establishments and a low proportion of wage earners, thus indicating the prevalence of small-size establishments in this line, and a relatively small number of w r age earners. The outlay for wages and the cost of materials were both low in proportion to the contribution which this group made to the total of New England industry. The paper and printing group represents two distinct forms of activity. Paper manufacture is pre- vailingly a large-scale operation, while printing establishments are relatively small. Hence these contrasts are concealed when the two are combined in a major group. In the manufacture of foodstuffs the number of establishments is a far greater proportion of the New England total than is the contribu- 154 INDUSTRIAL STRUCTURE OF NEW ENGLAND ALL METALS ALL TEXTILES LEATHER & RUBBER PAPER & PRINTING FOODSTUFFS CHEMICALS ALL OTHER v/yM/'///)^ a*^*p^ VALUE ADDE1D BY MANUFACTURE! - 1925 MILLIONS OF DOLLARS 100 200 300 400 500 600 700 800 NEW EN GLAND 3URVEY J_L Figure 18. — New England manufactures grouped according to nature of materials VAIUF APPFP FY MANUFACTURE. IQ?* PER CENT OF NEW ENGLANO TOTAL ALL NEW ENGLAND MANUFACTURES TEXTILES and Their Products MACHINERY BAPER, PRINTING, and Reloted Industries IRON AND STEEL Products LEATHER and Its Products NON-FERROUS METAL Products 10 20 30 40 50 60 70 80 90 V/////////////////////////////. W////////////////////////. ' W///MM/S///A V/AiW/A X*&'A rj»XX 7w\ FOOD and Kindred Products 23 NEW ENGLAND MANUFACTURES BY CHEMICALS and Allied Products RUBBER Products 39751 23 GROUPS OF INDUSTRIES 22 MISCELLANEOUS Mfrs. 3177. 2 LUMBER ond Allied Products JI4T. i STONC, Cloy, ond Glass P">du?*5 a TRANSPORTATION Equipment^ 2 RAILROAD Repolr Shops .em i MUSICAL Instruments, etc. JMX TOBACCO Monufoctures JJ* j NEW ENGLANO SURVEY 1 U.S. DEPARTMENT OF COMMERCE BUREAU Of fOflflCN AM) DOMESTIC COMMERCE oortcsiic connCRCC division Figure 19 MANUFACTURES 155 tion of this group to the total value added by manufacture. The proportions of wage earners and of wages were relatively low. In contrast, the cost of materials was relatively high. The contribution of foodstuffs to the total product of New England manufactures and to the income therefrom was thus considerably greater than its proportion of wage earners and wages. In the manufacture of chemicals the proportion of wage earners and of wages was also relatively low in the contribution which this group made to the New England income from manufacturing. The remaining industries not included in these designated groups made up a decidedly high proportion of the number of establishments, com- prising over 21 per cent of the New England total. But their con- tribution to the income from manufacturing, 9.3 per cent of the New England total, was relatively high in comparison with the cost of materials which they used. Importance of Major Groups of New England Manufactures [Ranked by nature of materials according to value added by manufacture in 1925] Nature of material Establishments Wage earners Total wages Rank Num- ber Per cent Average number Per cent Thou- sands of dollars Per cent 1 Metal and related industries 3,662 2,579 1,464 2,349 3,498 671 3,950 20.2 14.2 8.1 12.9 19.2 3.7 21.7 317, 025 412, 544 139, 466 79,838 40,706 26, 418 106, 219 28.2 36.8 12.4 7.1 3.6 2.4 9.5 427, 183 435, 736 158, 767 108, 003 48, 297 34, 221 127, 102 31.9 2 Textiles 32.5 3 Leather and rubber.. 11.8 4 Paper and printing 8.1 5 Foodstuffs _ 3.6 6 C hemicals 2.6 All other 9.5 Total New England 18, 173 100.0 1, 122, 216 100.0 1, 339, 309 100.0 Rank Nature of material Cost of materials Value of products Value added by manufacture Thousands of dollars Per cent Thousands of dollars Per cent Thousands of dollars Per cent 1 Metal and related industries 676, 365 1,212,488 406, 798 264,427 289, 730 153, 083 221, 966 21.0 37.6 12.6 8.2 9.0 4.7 6.9 1, 613, 126 2, 010, 896 753, 166 554, 399 435, 281 297, 407 496, 735 26.2 32.6 12.2 9.0 7.1 4.8 8.1 936, 761 798, 408 346, 368 289, 972 145, 551 144, 324 274, 769 31.9 2 Textiles _ 27.2 3 Leather and rubber 11.8 4 Paper and printing 9.9 5 Foodstuffs ._ 5.0 6 C hemicals 4.9 All other 9.3 Total New England 3, 224, 856 100.0 6, 161, 009 100.0 2, 936, 153 100.0 AVERAGE SIZE AND OUTPUT OF ESTABLISHMENTS The relative importance of the individual establishment in these major groups of manufacture is indicated in the next table, where the factors of wage earners, wages, cost of materials, value of products, and value added by manufacture are given as an average per estab- lishment. The prevailing large size of textile establishments is indicated by the high average number of wage earners, as well as by the wages paid per plant, by the cost of materials, and the value of the output. In each of these items the average per establishment is higher for textiles than that for any other group. 156 INDUSTRIAL STRUCTURE OF NEW ENGLAND In wages paid per establishment the metal industries rank next after textiles. The leather and rubber group exceeds the metals group in the average number of wage earners per plant. In the average cost of materials used per plant metals are surpassed not only by textiles and by the leather and rubber group, but by the chemicals group as well. In the average value of output per plant metals are surpassed by tex- tiles and by leather and rubber, but in the average value added by manufacture metals are surpassed only by textiles. Average Size and Output per Plant in Major Groups op New England Manufacture in 1925 Total number of es- tablish- ments Average per establishment Nature of material Wage earners Wages Cost of materials Value of products Value added by- manu- facture Metal and related industries Textiles Leather and rubber _ 3,662 2,579 1,464 2,349 3,498 671 3,950 86.5 160.0 95.3 34.0 11.8 39.3 26.9 $116, 653 168, 955 108, 447 45, 978 13, 807 51,000 32, 178 $184, 698 470, 139 277, 867 112, 570 82, 827 228, 142 56, 194 $440, 504 779, 719 514, 458 236,015 124, 437 443, 230 125, 756 $255, 806 309, 580 236, 590 123,445 41, 610 215, 088 69. 562 Paper and printing Foodstuffs Chemicals All other . _ All New England manufacturing industries. 18, 173 61.8 73, 698 177, 453 339, 020 161, 567 PRODUCTION PER WAGE EARNER IN MAJOR GROUPS The factors of wages, cost of materials, value of product, and value added by manufacture are shown as an average per wage earner in the next table. In average wages per wage earner there are relatively slight differences among the paper and printing group, the metals group, and chemical manufactures. These three groups stand out considerably above the others. The textile manufactures come lowest of all. In comparing the average wages in different groups, it should be borne in mind that the figures take no account of distinctions in the degree of skill and workmanship involved in the different lines of manufacture; neither are the proportions of male and female workers considered, nor the differences in seasonality of employment. There are great contrasts among these groups in these three respects. The average cost of materials per wage earner reflects the degree to which human labor enters into the manufacturing process. The lower this cost of materials the greater is the contribution by labor in the product. In this respect the three leading groups — metals, textiles, leather and rubber — are greatly overshadowed by the food- stuffs and the chemicals groups, and to a lesser degree by the paper and printing group. In the metals group the cost of materials per wage earner is below that in any other specified major group and far below the general average for all New England manufacturing. In textiles, and in the leather and rubber group, the cost of materials per wage earner is somewhat above the New England average. Foodstuffs stand far above the other major groups in cost of materials per wage earner. The average value of product per wage earner takes into account not only the purchased material, but also what the worker adds to MANUFACTURES 157 its value. In this respect foodstuffs and chemicals stand out far above any of the other groups; this would be expected from the high cost of materials per worker in these two groups. Textiles are con- siderably below the New England average in value of product per worker. Both the metals group and the leather and rubber group are somewhat below the average for all New England manufactures. The value which the effort of the wage earner contributes in the manufacturing process is the most significant indication of his pro- ductiveness. Here the chemicals group stands out far above any of the others. Paper and printing and the group of foodstuffs manu- factures are also conspicuously high. The metals group is above the New England average for all manufactures. The textiles group, on the other hand, is far below the average and is the lowest in the whole series. Average Production Per Wage Earner in Major Groups of New England Manufacture in 1925 Total number of estab- lish- ments Total number of wage earners Average per wage earner Nature of material Wages Cost of mate- rials Value of prod- ucts Value added by manu- facture Metal and related industries 3,662 2,579 1,464 2,349 3,498 671 3,950 317, 025 412, 544 139, 466 79, 838 40, 706 26,418 106,219 $1,347 1,056 1,138 1,353 1,186 1,295 1,195 $2, 133 2,939 2,917 3,312 7,118 5,795 2,088 $5,088 4,874 5,400 6,944 10, 693 11, 258 4,672 $2, 955 Textiles.. 1,935 Leather and rubber __. 2,484 Paper and printing __. 3,632 Foodstuffs _ __ 3,576 Chemicals 5,463 All other _ 2,584 All New England manufacturing industries. 18, 173 1, 122, 216 1,193 2,874 5,490 2,616 DIVERSITY OF OUTPUT The diversity and the broad range of manufacturing activity in New England are indicated by the fact that there were 221 lines of its manufactures which were of sufficient size to be included in the census tabulations for 1927, comprising nearly two-thirds of the 348 separate classifications for the whole United States. There were 108 distinct lines of manufacture, each of which contributed over $3,000,000 to the New England income. In each of 84 of these separate lines over $5,000,000 was contributed to the value added by manufacture. There were 52 classes in this list in which upward of $10,000,000 was contributed to the New England income. Going on up the scale, there were 30 of these industries contributing upward of $20,000,000 each, and in each of 14 separate lines the value added by manufacture exceeded $50,000,000. Each of the five leading lines of New England industry contributed over $125,- 000,000 to the region's income, and one of these, that of cotton goods, exceeded $250,000,000. Contributions of each of the 30 leading industries in 1925 are shown in Figure 20. The table on page 160 presents in compact form (a) the position of each of the 108 lines of industry, arranged in the order of importance of their contribution to the New England income in 1927; (6) total 158 INDUSTRIAL STRUCTURE OF NEW ENGLAND value of the product of each industry; (c) value added by manufactur- ing; (d) value added by manufacture as a percentage of the New England total for all manufacturing; and (e) value added by manu- facture as a percentage of the United States total for the specific industry. Industries whose totals in separate States can not be shown without disclosing operations of individual establishments are excluded from the table. INDUSTRY COTTOM GOODS. BOOTS & SHOES, Other than rubber. ELECTRICAL MACHINERY, apparatus 6 supplies. WORSTED OOODS. FOUNDRY 6 MACHINE SHOP. products. PAPER & WOOD PULP PRINTING 6. PUBLISHING. (Newspaper £ Periodical) RUBBER GOODS, tires and inner tubes. OYEIMG £ FINISHING TEXTILES SILK, Manufactures. PRINTING £ PUBLISHING. (Book £ Job) TEXTILE MACHINERY £ Parts. BOOTS £ SHOES. Rubber. BREAD, and other bakery products. GAS. manufactured. CUTLERY £ EDGE TOOLS. LEATHER, t, £ finisl JEWELRY. METAL WORKING MACHINERY. CONFECTIONERY. FURNITURE. MARBLE. oroniW 6 stone work. TOOLS. CLOTHING, men's LUMBER £ TIMBER PRODUCTS COTTOM, small wares. THIRTY INDUSTRIES EACH OVER S 20.000,000 IN VALUE ADDED 1925 NEW ENGLAND S URVEY DEPARTMENT OF COMMERCE Figure 20. — Leading- manufactures of New England It is seen that cotton goods, the largest single line of manufacture, contributed only 8.6 per cent of the total New England income from manufacturing. Next to this came boots and shoes, other than rubber, with 5.2 per cent, followed by electrical machinery, with 4.9 per cent; foundry and machine shop products, with 4.8 per cent; worsted goods, 4.3 per cent. These five outstanding lines, each of which contributed over $125,000,000 to the New England income MANUFACTURES 159 for manufacturing, together comprised only 27.8 per cent of the New England total. The next seven items in their importance in New- England were paper; woolen goods; printing and publishing of news- papers and periodicals; dyeing and finishing textiles ; brass, bronze, and other nonferrous products; rubber goods (other than boots and shoes) and rubber tires and inner tubes; book and job printing and publishing. The first 12 industries comprised 44.4 per cent of the New England total; the addition of the next 2 industries — bread and other bakery products, and textile machinery — brings the contribution of the first 14 industries in this list up to 48 per cent of the total for all New England manufactures. Each one of these 14 industries made a contribution to the New England income exceeding $50,000,000. 160 INDUSTRIAL STRUCTURE OF NEW ENGLAND asaa&ss £8 $8% MANUFACTURES 161 OSNtOOOOO CO CO —i O Tt< t^ OS © CO 00 00 — i ""f rH * l-H rH 1- CM T* r-H ^^COCOCOCOCOCO CNCM CMCM CMCMCM NNNNNNlNINNNf) t— CO t-t O NNM-iMQ NTfiCO'J'tOHO »0 © HN HiOiO MNONhM-^INCOMN m COt^t- ^ HOMO'* 55 00 CC O CN CN iO »0 iO t- CO t^ Tt< IO 00 OS MtOOJH^rJiWiONOM ,"5 COOOiO H (DOhiOOh NC^^HOOOHH tJ< OS OS CO CONH WO r-ilNNTfOO^oa^O jQ oTco" oTr-T oo* oo"co"kO s co*'co ko co'^-rt^rjrc^f * NH OO rH iO Tr«ON«0©M(ONH>0 ^ OM^hNtJI CM CM CM CM CO © CO C© rf< O »C »C CO Tf< b~ 00 00 *C t^ OS CO t- t^ O 00 >0 OOQiOHHOJ rf< CO CN rH CO OS OS 00 l^ CO CO -^ ONCD Tf< t* i-l »C IO t^ CO "f CO t- rH MONMO* O0iN(0»OMO00 CO »0 ""*• CN rH 00 OO 00 CO *C re © OS 00 00 t^ CO "* ojooooooi^ lOiacOCOCOCN CNrHOOOOOSOO 00 00 00 00 00t^t>. !>• t^ t^ t^ I>- CO CO CO CO CO CO 5-hhOS00CN00»OCO CN OS CM-* r-i O rH MCOH OCOON »OOTt* © D Tt< © rH iO rt< »0 OS 00 t— CN CM OS CO O N^oOOOMrHTttiOOCNiO St^HNCD-HOO iO CO rH rH CM 00 *0 CM »0 Tt< © CO CN CO ■<*< CO rH CO TjiOCO© ©OS00 O O CM 00 O t^ co CM OS Tf CM OS O CO C COCOCNCOCO CO iO CO CO CO CM rH CM CM CM CM rH rH CM rH iO CN r CO •* O CO 00 Tt< O O CM -HH CM rH C CO CO CD 2 c3 c3 o © o 03»2 co p p Sflfl £00 CD o3 CO P CO'r* e3 03 . 3 3^ +"3".J"2 CD CO 073 a a,a SSph o o" OO cTr? CO +J , ft© _J s? CO a axi © co co rX 03 C3 sis* 03 rj W3 d '§ SrqS'S'gS h W 71^ "3 c« S 3 r 5 cJ : Pn^a cpPh CO 03 o OT <" +s CO S +J +i 4J CO -C ^ 4_> CD 03 Q* CO CD CO l_( HH CO CO 2 s w 2 2 2 © +3 o « ca zi CD o3 o3 co P co co co §« s§ § ss Is § ^ ., CO ► +J-P CO +J +-» p 3^ c3 3 3 © ° P 1 ^ ° © 33+2 oh2 33 o o a -o o CD CO H CD CD CD o 3 s '3 o a -1 Or> «a o o o go o ^ 8 CO T3 s« O flrg ftco fe ^ co" ' 3 OC3 M ^o o 3 03 cS+j'" 2 1 > +s |_, cS ! > c3 3 ft — Js g CO CD $ * co te S r?, CO ^n B Ot3 ©£S ^—03 330 co 42 p si ft M ll co bf^ "C"3 ° 3S§. S i C 3 3 g^ w 3 hfl 2§ s .a §'PS g^aB 03 o3 +J "3 «rf3 J -3 3 4S-rS 3 -3 co B -3-3 CD bfifl ■2- £2 © ft 3 oXJ CO n p p bCco 03 ^ w 03 "O fcj eg bOp 3 © 03 «h o3 CO .3 qhhO OWfe I'll- •* co P bCfeO hOOiSO a§ O CD .rQ ®^ 3n3 3-Hom 5S3S II :^i co ^ : Og r*. Ih O Jh .ate g .S-§8 »H ^^ ■ 3 § £ v^.2 CO - 00-" O 3 «1 PS * 2 « a . ®-Sp.2 ° © t* « p • CO > in O © *3 "^ ^ — • a-g^'gfl 'C 9 T3 o3 co 03 Si * © .2 t>»o3 a ftS onaSgg P j-i £ 3 © 03 © S£& pcnOcQCClO |l| cleft's 1 ' P ^5 1 P ftco ™ ' 03 p p © a^L'S \M dp| S C P ^ o3 © 'S oj C3 § 03-3 03 g CO CO CO CO CO rH CM CO ^ >r} CO N 00 OS © r^ cN M rft ko CO l>- 00 C3s O rH rf Tf t(< >* ^1 rf ^ -^ rf «5 iO "5 »0 »0 »0 »^5 "S "v »0 «P

~ cd *- cd -*■» J* U OS»-l »oo cn © CO i-H 06 »o CO t^ CN »-l NH 000 010>©^<*<0«)W^ CN»oc©o-*oJ«or^t^*o 5 OS OS 00 00 0000001- co co so co io»o )*t^Oco^ ! CD CD CO w iJ'll lifs c3BBBcoBooB vhooobob i*h '+3 '13 '^3 ,b +3 ,B '43 -o o o o o o o CDcDCDCDcSCDcSCDOCDeS B B B B w B w Bt3 B w 5oo o^ o^S o • o5 ^OOO^O^U log I a ! b 2 fij fled ®.£Pc/ Pd w S u oD S -r kC «C i - 00 f - CO co -r >o « coco wo B cd £ 2® „w* cNco-rtH»ocpt^oo<: OsOsOsOsOsOsOsC MANUFACTURES 163 MNMOO NHrHH N««0«Q CO •^ r- co Tt< © oo CNt^oOCN co o cn ^aor>Te>f ^f lOr-iNNCC W5 COCO CO CO co" Q5DMO5O0 CN CM iO O >0 CD CD OT CO J3.C ^ w^S « S m 3 3 oa 3 03003 o "-C .P '-2 +2 jp '£> 00000 o £ 03 CO CD c3 O Owfl fltn p g|§§| § ■si- Is. 2 a 25 j2 rag -o E 't3 o3 < °3 £ © ■ T3-S P^ u, co p 03 © CD CD .P p "^ si M> O » ~.2 c3 i O rj C »■« £ o © o3 P gfl CD ^3 .2 fe *-• © © 03 ^ O 164 INDUSTRIAL STRUCTURE OF NEW ENGLAND CONTRIBUTION OF INDIVIDUAL INDUSTRIES TO NATION'S TOTAL The importance of New England's manufactures to the rest of the country is strikingly indicated by the large number of lines in which the section contributes an outstanding proportion of the Nation's total manufactures. In each of 59 principal lines of industry New England contributed in 1927 over $8,000,000 to the national income, as shown by the value added by manufacture. In this number there were 42 lines in which the New England contribution was upward of 10 per cent of the Nation's total; in 24 of these the contribution from New England exceeded 25 per cent; and in 9 the region contributed more than one-half of the total national income. These lines are shown in the three sections of the following list, with their rank in ALL MANUFACTURES TEXTlLESaTHEIR PRODUCTS MACHINERY .PRINTING. and Related Ind IRON & STEEL PRODUCTS LEATHER and ITS PRODUCTS N0N FERROUS METAL PR0DVQS FOOD & KINDRED PRODUCTS CHEMICALS a ALLIED PRODUCTS RUBBER PRODUCTS MISCELLANEOUS MANUI LUMBER & ALLIED PRODUCTS STONE, CLAY & GLASS PRODUCTS TRANSPORTATION EQUIPMENT RAILROAD REPAIR SHOPS MUSICAL INSTRUMENTS ETC. TOBACCO MANUFACTURES, 1ST VALUE ADDED BY MANUFACTURE. 1925 PER CENT OF UNITED STATES TOTAL IFACTURES '//iffi/. NEW ENGLAND'S CONTRIBUTION TO UNITED STATES MANUFACTURES DOMESTIC COMMERCE: DIVISION Figure 21 New England and the percentage relation which New England bears to the United States. New England's contribution in 1925 to the national income in each of the 16 classifications of manufactures made by the Bureau of the Census is shown in Figure 21. The articles in which New England contributed upward of half the Nation's total (Group A) include such lines of outstanding importance as woolen goods, worsted goods, textile machinery, and rubber boots and shoes, each of these exceeding 60 per cent of the total for the whole country. In cutlery, edge tools, and plated ware the New England portion exceeded 50 per cent; firearms were at the top of the list, with 74 per cent, and a number of others exceeded 50 per cent. In all these articles the importance of New England manufacture is clearly evident. Besides these most prominent lines there were within the 60 leading New England manufactures 15 other products which contributed MANUFACTURES 165 from one-fourth to one-half of the manufacturing income for the whole country. This group includes a number of the leading manu- factures of the whole country, among which are cotton goods, boots and shoes other than rubber, paper, hardware, jewelry, brass and bronze products, tools, and several other important lines. There are a number of other products of lesser local importance in which this section contributed upward of 25 per cent. These include, among others, clocks, rubber boots and shoes, boot and shoe cut stock not made in shoe factories, typewriters and supplies, hats of fur felt, dyeing and finishing textiles, stationery goods not elsewhere classified, corsets and allied garments. The New England income from the manufacture of needles and pins was slightly less than half that of the entire country from this source. The full list of items contributing from one-fourth to one-half of the United States total is given in the second part as Group B. The list of lines in which New England contributed from 10 to 25 per cent of the total national income from their manufacture is a large one. It is presented as Group C in the following classification. Outstanding in this list are electrical machinery, foundry and machine- shop products, rubber goods, silk manufactures, leather manufac- tures, metal-working machinery, and confectionery. Group A. — New England Manufactures Contributing Over One-Hale of The United States Total Each exceeding $8,000,000 in value added, 1927 Per cent of Industry and rank in New England : United States 49. Firearms 74. 4 5. Worsted goods 68.9 29. Cotton small wares 64.7 7. Woolen goods 63. 2 39. Boot and shoe findings, not made in boot and shoe factories 63. 1 14. Textile machinery and parts 62. 3 58. Emery wheels and other abrasive and polishing appliances 61. 8 20. Cutlery and edge tools, not including silver and plate 58. 7 33. Plated ware 51.7 Group B. — New England Manufactures Contributing From One-Fourth to One-Half of the United States Total Each exceeding $8,000,000 in value added, 1927 Per cent of Industry and rank in New England : United States 43. Clocks, time-recording devices and movements 48. 9 18. Boots and shoes, rubber 46. 1 52. Boot and shoe cut stock not made in shoe factories 45. 1 30. Typewriters and supplies . 39. 4 21. Jewelry 38. 35. Hats, fur-felt 37.8 1. Cotton goods 36.9 15. Hardware, n. e. c 35.9 2. Boots and shoes, other than rubber 34.3 9. Dyeing and finishing textiles 33. 5 10. Brass, bronze, and other nonferrous alloys, and copper 31. 6 26. Tools, not including edge tools, machine tools, files, or saws 28. 9 57. Stationery goods, n. e. c 28. 1 6. Paper 26.8 51. Corsets and allied garments 25.2 61232°— 30 12 166 INDUSTRIAL STRUCTURE OF NEW ENGLAND Each between $3,000,000 and $8,000,000 in value added, 1927 Per cent of Industry and rank in New England — Continued United States 71. Needles, pins, hooks and eyes, and snap fasteners 46.4 96. Motor cycles, bicycles, and parts 35.6 68. Wood, turning and carving 28.8 100. Musical instruments, piano and organ materials 27. 8 Group C. — New England Manufactures Contributing From 10 Per Cent to 25 Per Cent of the United States Total Each exceeding $8,000,000 in value added, 1927 Per cent of Industry and rank in New England : United States 41. Wire drawn from purchased bars or rods 24.4 38. Pulp (wood and other fibers) ____ 24. 3 54. Toys, games, and playground equipment 23. 3 23. Metal-working machinery, including machine tools 20.9 25. Granite, marble and slate, and stonework 20. 1 22. Leather, tanned, curried, and finished 18. 9 32. Soap 16. 9 16. Silk manufactures 16.0 47. Carpets and rugs, wool, other than rag 14.8 3. Electrical machinery and supplies 14. 6 53. Paper goods, n. e. c 14. 6 27. Confectionery 13. 2 36. Boxes, paper and other, n. e. c 12.8 34. Steam-fitting and steam and hot-water heating appliances 12. 6 17. Gas, manufactured, illuminating and heating 12. 4 11. Rubber goods, tires, and inner tubes 12. 3 4. Foundry and machine-shop products, n. e. c 10. 3 44. Ship and boat building, including repair work 10. Each between $3,000,000 and $8,000,000 in value added, 1927 _ . __ _ Per cent of Industry and rank in New England : United states 89. Silversmithing and silverware 23. 2 63. Cordage and twine 23. 1 74. Envelopes 22, 2 104. Carriages and sleds, children's 22. 2 97. Felt goods, wool or hair 21. 4 86. Canning and preserving, fish, crab, shrimp, oysters, and clams 21. 1 75. Sewing machines, cases, and attachments 20.0 87. Brushes, other than rubber 18. 5 73. Housefurnishings, n. e. c 18. 90. Sporting and athletic goods, not including firearms and ammuni- tion 17.0 62. Fancy miscellaneous articles, n. e. c 16. 2 82. Bolts, nuts, rivets, iron and steel, not made in rolling mills 13. 6 61. Boxes, wood, except cigar boxes 13. 2 72. Forgings, iron and steel, not made in steel works or rolling mills 12.3 106. Screw-machine products 12. 105. Engraving, steel and copper plate, and plate printing 11. 3 69. Bookbinding and blank-book making 11. 1 07. Wire work, n. e. c 10. 7 107. Chocolate and cocoa products, not including confectionery 10.0 CHANGES IN NEW ENGLAND MANUFACTURE This discussion presents the changes that have taken place from 1 849 to 1 927 in the total income from New England manufactures. Its purpose is to show the growth of New England manufacturing as a whole at different periods and to indicate how this growth compares with national development and with the growth of manufacturing in other parts of the United States. No attempt has been made to adjust the figures for changes in the value of the dollar at different periods. These variations should be taken into account in making MANUFACTURES 167 comparisons of changes in the income from manufacturing at different times. Comparisons in this discussion deal with identical time inter- vals, and hence no adjustment for changes in dollar value is attempted. Tables are presented showing (1) New England's proportion of the national population and manufacturing in each census year since 1849; (2) the change in total New England manufactures during each intercensal period, compared with the United States; (3) the periods of pronounced contrast and of slight contrast in the growth of manufacturing in New England and in the whole country; (4) the growth of manufacturing in different geographical divisions from 1904 to 1914 and from 1914 to 1925; (5) changes in total manu- facturing of New England in these periods, compared with those for the whole United States; (6) changes in each of the 24 leading New England industries in these two periods. In the year of the first national census of manufactures, that of 1849, over one-fourth of the national income from manufacturing was contributed by New England. At that time the borders of the six New England States included somewhat less than one-eighth of the total population of the country. Since the middle of the nine- teenth century there has been a continuous and fairly regular reces- sion in the relative position of this region, due to the increase of population in other parts of the United States, and to the expansion of manufactures accompanying the growth in population. The in- come from New England manufactures in 1927 comprised approxi- mately 11 per cent of the national total, and the population of New England was somewhat less than 7 per cent of the total. New England's share in the national population and manufactur- ing in each year for which official figures are available, from 1849 to 1927, inclusive, is shown in the following table. New England's Portion of the Nation's Population and Manufactures, Census Years, 1849 to 1927 New New New England New England England percent- England percent- percent- age of percent- age of Census year age of United United States Census year age of United United States States manu- States manu- popula- factures popula- factures tion (value added) tion (value added) 1927 16.90 16.92 16.96 16.98 7.00 ( 2 ) 7.12 10.80 10.96 12.12 13.00 12.90 12.85 14.00 1904.- ( 2 ) 7.36 7.47 8.00 9.05 9.97 11.76 14.45 1925 1899. .. 15.49 1923. 1889 16.78 1921 1879 _ 22.60 1919 1869 .. 23.18 1914 1859. _.. 26.11 1909 1849 28.07 i Estimated. 2 No figures. The income from New England manufacturing, in terms of the actual dollars of value added by the manufacturing processes, shows a continuous advance in each census year, from the date of the first census of manufacturing, in 1849, up to the close of the World War period in 1919. Throughout these 70 years the total figures for the last year in each census period were in every instance greater than the figures for the end of the preceding census period. 168 INDUSTRIAL STRUCTURE OF NEW ENGLAND The most notable early periods of expansion were the two 10-year periods preceding 1869 and the decade ending in 1889. Previous to the World War the 10 years of greatest growth of New England manu- factures were those comprising the period from 1859 to 1869. The New England income from manufacturing was then increased by 81 per cent. It is obvious that this increase was due, in part, to the inflated dollar values following the Civil War period. Outside of this abnor- mal period the greatest increases in New England manufacturing took place in the decade ended in 1859, which showed an expansion of 71 per cent; in the period ended in 1889, with 58 per cent increase; and the 10 years preceding 1909, which also showed an increase of 58 per cent. In contrast to these periods of conspicuous growth, the decade ended in 1899 showed an increase of only 7 per cent in its manufacturing income. In the five years from 1909 to 1914 also, the expansion was only 6 per cent. In adjacent columns of the following table are given the total value added by all manufacturing in New England and in the United States. In the last two columns of the table the figure for each census year is shown as a percentage of the figure for the preceding census. The percentage change in the different census periods is readily ascertained by observing the difference between the percent- ages and 100 per cent. The years where these percentages are over 100 indicate an increase over the preceding census year; while the years in which the given percentage figures are below 100 are those in which there was a decline from the preceding census. New England Compared with Entire United States in Total Manufac- tures, Census Years, 1849 to 1927 Value added by all manufactures Census year Value added by all manufactures Census year Millions of dollars Percentage of preceding census figures Millions of dollars Percentage of preceding census figures New England United States New England United States New England United States New England United States 1927 2.980 27, 585 26, 778 25,778 18, 272 25,042 9,878 8,529 6,294 101.5 94.0 131.5 73.5 254.6 106.3 131.2 120.4 100.3 103.9 141.1 73.0 253.5 115.8 135. 5 130.3 1899 756 706 446 404 223 130 4,831 4,210 1,973 1,744 854 464 107.1 158.3 110.4 181.2 171.5 114.8 1925 I 2, 936 1889 213.4 1923 ! 3,125 1879 113.1 1921 l 2, 376 1869 204.2 1919. 3,231 1859 184.1 1914 1.2fifl 1849 1909.- 1904 1, 194 910 i No data for "Coffee and spice, roasting and grinding" and "Automobile repairing" are included in the statistics here given for the years 1925, 1923, and 1921. The statistics given for the years from 1849 to 1919, inclusive, contain figures for these two industries. The time of greatest expansion of New England manufactures, as shown by the actual dollar value added, was the 5-year period from 1914 to 1919, in which the value added by New England manufac- tures increased over one and one-half times. This abnormal expan- sion was followed, in the 6-year period from 1919 to 1925, by a net reduction amounting to 9 per cent of the 1919 income from New England manufacturing. The postwar deflation period, from 1919 to 1921, brought about a drop of over 26 per cent of the 1919 total. In the succeeding 2-year period, from 1921 to 1923, there was a substantial increase in the in- MANUFACTURES 169 come from New England manufacturing, the advance comprising over 31 per cent of the 1921 figure. This, in turn, was followed in the two years from 1923 to 1925 by a drop of 6 per cent from the 1923 figure. Contrasts between the changes in New England industry and the changes w^hich took place throughout the country as a whole in the different intercensal periods may be located by comparing their re- spective positions in the census years. The census figures show that in every interval up to 1914 the growth of manufacturing in New England was exceeded by the growth of manufacturing in the Nation as a whole. In other words, the industrial development of New England was so largely completed in the earlier years of the country's history that ever since the middle of the last century manufacturing has expanded in other parts of the country more rapidly than it has in New England. In the early days when new sections of the country were being opened up to settlement and development the energies and capital of the people were so fully absorbed by their immediate tasks that little effort was available for the development of manu- factures. New England, on the other hand, had already established manufacturing as its dominant activity, with highly developed com- merce and much accumulated capital. Its limited natural resources had favored the early growth and maturity of its manufactures. Throughout the different census intervals the prevailing condition has been one of substantially greater increase in manufacturing in- come for the country as a whole than for New England alone. In the 12 intercensal periods from 1849 to 1925 there were 7 intervals in which the national increase exceeded the increase in New England to a very considerable degree, while there were 6 intervals in which there was only slight contrast. The single period of most pronounced contrast was the 10-year in- terval from 1879 to 1889. In this period there was much wider difference between New England and the country as a whole than that for the postwar interval from 1921 to 1927. Considering the latter interval, the total 1927 income from manufacturing was 125 per cent of the 1921 total for New England, while for the country as a whole the 1927 figures were 151 per cent of the total for 1921. Even when the difference in length of periods is taken into account, there was less contrast between New England and the entire United States in the growth of manufactures during the postwar period from 1921 to 1927 than there was in the decade from 1879 to 1889. In the 9-year period from 1914 to 1923 covering the World War and the early postwar years, there was very slight contrast between New England and the entire country. The manufacturing income in New England showed a slightly greater increase from 1914 to 1919 than was shown by the country as a whole; and in the defla- tion period from 1919 to 1921 the falling off of manufacturing income in New England was slightly less than the reduction for the country as a whole. The periods of contrast between New England and the entire United States in their respective changes in total manufacturing income are shown in the following table in two pairs of columns. The first pair shows the census intervals when there was substantial contrast between New England and the United States, while the second pair shows the periods of slight contrast, 170 INDUSTRIAL STRUCTURE OF NEW ENGLAND Periods of Contrast Between New England and the Entire United States [Total value added by manufacture in later year of each census interval expressed as ceding census year] percentage of pre- Census interval Substantial contrast Slight contrast Census interval Substantial contrast Slight contrast New England Entire United States New England Entire United States New England Entire United States New England Entire United States 1925-1927 Per cent Per cent Per cent 101.5 Per cent 103,0 1899-1904 1889-1899 Per cent 120.4 Per cent 130.3 Per cent Per cent 1923-1925 94.0 131.5 103.9 141.1 107.1 114.8 1921-1923 1879-1889 1869-1879 158.3 213.4 1919-1921 73.5 254.6 73.0 253.5 110.4 113.1 1914-1919 1859-1869 _ 1849-1859 181.2 171.5 204.2 184.1 1909-1914 106.3 115.8 1904-1909 131.2 135.5 COMPARISON WITH OTHER SECTIONS Throughout the period from 1849 to 1925 the manufactures of New England were surpassed continuously by the three Middle Atlantic States of New York, New Jersey, and Pennsylvania. The Middle Atlantic section during that period continued to be the lead- ing manufacturing region of the country. From 1849 to 1889 New England's share of the Nation's total income from manufacturing fell from 28 per cent to less than 17 per cent. In this interval the Middle Atlantic division also fell back from 40 per cent of the Nation's total to 37 per cent. By 1925 it had fallen to 33 per cent. The development of manufacturing in the Middle West was such that by 1889 New England had been passed by the five States of the East North Central division (Ohio, Indiana, Illinois, Michigan, and Wisconsin). These States then contributed 24 per cent of the Nation's total, in contrast to only 11 per cent in 1849. By 1925 the advance of manufacturing in the East North Central division of States was such that they then contributed 31 per cent of the Nation's total and were approaching closely the Middle Atlantic States, whose contribution had receded to 33 per cent. Relative advances were made also by the States in the South Atlantic division (Delaware, Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia, and Florida); by the West North Central States (Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, and Kansas); and by the West South Central States (Arkansas, Louisiana, Oklahoma, and Texas). In 1849, 93 per cent of the Nation's manufacturing was located in States east of the Mississippi River, and only 7 per cent west of this dividing line. By 1889 the proportion of the Nation's manufacturing east of the Mississippi River was reduced to 87 per cent, and 13 per cent was in the other States. In 1925, 85 per cent of the Nation's manufacturing was located in the 26 States east of the Mississippi River, and 15 per cent was in the 22 States west of this dividing line. MANUFACTURES 171 Pre-War and Post- War Changes in Value Added by Manufacture in the Entire United States and in the Four Principal Groups of Manufactur- ing States Geographic division Percentage increase 10-year period 1904-1914 11 -year period 1914-1925 Entire United States 57.0 39.5 49.4 76.1 60.4 176.8 131.4 Middle Atlantic 158.8 East North Central 200.7 South Atlantic __ __ 191.6 PRE-WAR AND POST-WAR PERIODS COMPARED It is instructive to compare the changes in New England manufac- turing during the abnormal 11-year period from 1914 to 1925 with the 10-year period from 1904 to 1914, which was a time of fairly stable industrial conditions. During the earlier period the income from New England manufactures increased by 39.5 per cent of its amount in 1904. There was an increase of 21 per cent in the number of wage earners. Wages increased 43 per cent, considerably more than the increase in total manufacturing income. The cost of materials in- creased by nearly one-half, considerably more than the increase in wages. The gross value of the total output increased 44 per cent, and there was an increase of invested capital of nearly 58 per cent. In the 11-year period from 1914 to 1925 there was an increase in wages of 113 per cent, but a slight falling off in the average number of wage earners employed. The cost of materials was not quite doubled, and the gross value of the output was more than doubled. The total net income from manufacturing, as shown in the value added by manu- facture, showed a considerably greater rate of increase than did the gross value of manufactured products. Changes from 1904 to 1914 and from 1914 to 1925 in Factors of Manu- facturing Activity in New England as Compared with the Entire United States Item 1914 as percentage of 1904 New England United States 1925 as percentage ©f 1914 New- England United States Number of wage earners Wages paid Cost of materials Value of product. Value added by manufacture Capital invested 121.2 143.1 148.5 144.5 139.5 157.6 128.7 156.2 169.0 163.9 157.0 167.2 98.4 213.1 194.5 210.5 231.4 121.7 264.1 253.7 263.1 276.8 CHANGES IN LEADING INDUSTRIES When figures of the output of individual industries are analyzed it is found that there are numerous important lines of New England activity whose advance from 1914 to 1925 exceeded that in other sections of the country. In the 24 leading lines of manufacturing there were 7 in which the increase from 1914 to 1925, as shown by the value added by manufacture, was greater in this section than the growth for the country as a whole, including New England. The 172 INDUSTRIAL STRUCTURE OF NEW KNOLAND MILLIONS OF DOLLARS uv,va;u 80,000 60,000 50,000 40.000 30,000 20,000 10,000 £ ^* 8,000 * , r X ^r 6,000 5,000 4.000 3,000 £.000 1,000 ■UHITED Sn TFS-i. ^-« f .' r* TES \„~ s *"*>* ,***' »7 ^X A ^ -mm IJY/ il ,-*' £&L / W OF Ml SSI 5SIPP/ RIVt ? f ^ ^jr <>' 800 i '^ ^*»" 's iillW LI IVLHHU \ nr* 00 ***** 600 500 400 300 200 100 \y ^'' *y ^^ > "' y ' / • / / y y OF MI5SISS PPI RIVER s 80 . / 60 50 40 .30 20 10 / / / NEW ENGLAND SURVEY U S DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Domestic Commerce Division (DD-3240-A) Figure 22. — Relative growth of manufacturing income, as indicated by value added by manufacture, east and west of the Mississippi River MANUFACTURES 173 MILLIONS OF DOLLARS IUU,UUU 80,000 60,000 50,000 40,000 30,000 20,000 10,000 6,000 6,000 5,000 4,000 3,000 2,000 1,000 800 600 500 400 300 200 100 80 60 50 40 30 20 10 i 1 \ / •* — 1 1 1 1 i \ „++ 4 s f s UNITFD _^. * f // 1 *"» fj \ / '"' fl / / V / / MIL ATLANTIC - / 1 1 -"' »• / I : \ / X S / ," « f f / ,• * + "" ^ S ^ />< -NEW EN6LA, VD \ 1 * AS .•* / X i s ^ f ,«• \ f AST NORTH t .X" •** / 3 ^/ / CENTRAL # .«* y / f SOUTH ATLAt mc-y -EAST SOUT H CEN TRAL y .•• / / B »«" / / / / / ...•-•" / # .** s » '* / ^ NEW ENGLAND SURVEY U.S. DEPARTMENT OF COMMERCE Bureau of Foreign and Domestic Commerce Oomestic Commerce Division < c r> a> en O) o •*■ o *t at — rovnt- f lO ID b- CO C7> O O — — fNCXCViN O CO CO CO CO 00 O) Cn O) CDCnCDCDO) * ~~(D-D-3240-B) Figure 23. — Relative growth of manufacturing- income, as indicated by value added by- manufacture, in various geographic regions 174 INDUSTRIAL STRUCTURE OF NEW ENGLAND INDUSTRY COTTON GOODS FOUNDRY AND MACHINE SHOP PRODUCTS. TEXTILE MACHINERY. METAL WORKING MACHINERY BOOTS AND SHOES (other than rubber) ELECTRICAL MACHINERY. APPARATUS & SUPPLIES WORSTED GOODS PAPER AND WOOD PULP WOOLEN GOODS PRINTING & PUBLISHING. NEWSPAPER & PERIODICAL DYEING AND FINISHING TEXTILES. HARDWARE. {NOT ELSEWHERE CLASSIFIED) BRASS. BRONZE, COPPER AND OTHER NON-FERROUS ALLOYS. MISCELLANEOUS RUBBER GOODS PRINTING & PUBLISHING BOOK &JOB TEXTILE MACHINERY & PARTS (included in FOUNDRY AND MACHINE SHOP PRODUCTS.) SILK MANUFACTURES BREAD AND OTHER BAKERY PRODUCTS GAS. MANUFACTURED BOOTS AND SHOES (rubber) KNIT GOODS CUTLERY AND EDGE TOOLS. LEATHER . (tanned. CURRIED AND FINISHED) METAL WORKING MACHINERY (included in FOUNDRY AND MACHINE SHOP PROOUCTS) CONFECTIONERY (including chewing gum) Figure 24. — Changes in income contributed by leading New England industries, in 1904, 1914, and 1925 MANUFACTURES 175 products of which this is true are cutlery and edge tools, the printing and publishing of books and job work, gas manufacture, rubber boots and shoes, worsted goods, woolen goods, and leather. Besides the products in which the New England advance stands out above that for the rest of the country there are a number of others in which the growth in New England was very substantial, although less than that for the country as a whole. Important lines in which New England shows substantial growth include electrical machinery and equipment; paper and pulp; newspaper and periodi- cal publishing; dyeing and finishing textiles; hardware, brass and bronze products; miscellaneous rubber goods; silk manufactures; and confectionery. The total value added to the New England income for each of the 24 leading products is shown for 1904, 1914, and 1925 in the next table. The figures for 1914 are shown also as percentages of 1904, and those for 1925 as percentages of 1914. Comparison of the changes in the pre-war period with the change in the period since 1914 may thus be easily made for each of these products. The table includes the corresponding figures for the entire United States, so that changes in New England may be compared with the national changes in each case. The changes in these specific products are discussed in the portions of this report that deal with the respective lines of industry. Changes in 24 Leading New England Manufactures, 1904 to 1914 and 1914 to 1925 Product and census year Value added by manufacture Rank in 1925 New England Entire United States 1914 as percent- age of 1904 and 1925 as percent- age of 1914 i Xew England Entire United States 1 Cotton goods: 1904 „ 1914 1925 Boots and shoes, other than rubber: 1904 _ 1914 1925 Electrical machinery, apparatus, and supplies: 1904 1914 .... 1925.... Worsted goods: 1904 1914 1925 Foundry and machine-shop products: 1904 1914 1925 Paper and wood pulp: 1904 1 1914 1925 Woolen goods: 1904 1914 1925 .__, $88, 169, 000 $160,404,000 2 130,175,000 ! 244,967,000 251,015,000 i 637,215,000 67, 500, 000 122. 744. 000 147.6 192.8 152.7 260.1 3 100, 216. 000 165,467,000 12, 224, 000 34, 928, 000 153, 446, 000 35, 612, 000 58, 570, 000 133, 122, 000 63, 868, 000 117,574,000 132,938,000 30, 343, 000 40, 368, 000 98, 817, 000 35, 807, 000 24, 618, 000 91, 170, 000 191, 404, 000 443, 751, 000 73, 972, 000 180, 442, 000 903, 310, 000 56, 087, 000 92, 868, 000 195, 483, 000 407, 827, 000 508, 423, 000 1,349,278,000 77,464,000 118,960,000 366,022,000 54,366,000 40,120,000 ! 141,906,000 \ 148.5 161.2 155.9 231.8 4 285.7 439.3 243.9 500.6 5 164.5 227.3 165.6 210.5 5 184.1 113.1 124.7 265.4 7 133.0 i 153.6 244.8 307.7 68.8 1 370. 3 | 73.8 353.7 1 The accuracy of some of these percentages may be affected slightly by the incompleteness of census data for New England in 1914 and 1904, due to exclusion of certain returns to avoid disclosure of individual operations. 176 INDUSTRIAL STRUCTURE OF NEW ENGLAND Changes in 24 Leading New England Manufactures, 1904 to 1914 and 1914 to 1925 — Continued Product and census year Value added by manufacture Rank in 1925 New England Entire United States 1914 as percent- age of 1904 and 1925 as percent- age of 1914 New England Entire United States 8 Printing and publishing newspapers and period- icals: 1904 1914 $20, 962, 000 26,114,000 71, 765, 000 9, 739, 000 15, 439, 000 64, 463, 000 15, 631, 000 21, 035, 000 62, 781, 000 15, 096, 000 21, 051, 000 62, 699, 000 18, 450, 000 18, 170, 000 59, 719, 000 10, 241, 000 19, 239, 000 54, 941, 000 12, 228, 000 19, 715, 000 54, 606, 000 ( 2 ) ( 2 ) 53, 747, 000 30, 378, 000 13, 334, 000 51, 773, 000 12, 876, 000 22, 426, 000 48, 775, 000 8, 472, 000 15, 863, 000 36, 992, 000 11,319,000 15, 162, 000 33, 149, 000 6,114,000 8, 501, 000 33, 064, 000 11,674,000 13,313,000 31,041,000 14, 183, 000 IS, 029, 000 30, 313, 000 ( 2 ) ( 2 ) 28, 445, 000 4, 528, 000 8, 916,000 25, 147, 000 $238, 970, 000 366, 824, 000 1, 068, 121, 000 29, 948, 000 108, 093, 000 461, 205, 000 32, 130, 000 46, 499, 000 147, 550, 000 31, 228, 000 52, 586, 000 187, 837, 000 37, 291, 000 47, 244, 000 182, 084, 000 57, 427, 000 109, 569, 000 324, 857, 000 130, 037, 000 210, 878, 000 578, 198, 000 ( 2 ) ( 2 ) 82, 617, 000 38, 065, 000 29, 866, 000 75, 368, 000 113,610,000 217, 636, 000 600, 178, 000 87, 965, 000 143, 459, 000 277, 037, 000 59, 964, 000 112,225,000 356, 034, 000 12, 587, 000 17, 355, 000 59, 701, 000 61, 442, 000 82, 956, 000 155, 380, 000 29, 048, 000 41,890,000 86, 931, 000 ( 2 ) ( 2 ) 121, 068, 000 38, 277, 000 09, 830, 000 203,519,000 124.6 274.8 153 5 1925 . 291 2 9 Rubber goods and rubber tires and inner tubes: 1904 1914 158.5 417.5 360 9 1925 426 7 10 Hardware, not elsewhere classified: 1904 1914 134.6 298.5 144 7 1925 317.3 11 Dyeing and finishing textiles: 1904 1914 132.8 297.8 168.4 1925 357.2 12 Brass, bronze, copper, and other nonferrous alloys: 1904 1914 98.5 328.7 126.7 1925 385.4 13 Silk manufactures: 1904 1914 187.9 285.6 190 8 1925 296.5 14 Printing and publishing, book and job: 1904 1914 161.2 277.0 162.2 1925 274.2 15 Textile machinery and parts: 1904 _ 1914 1925 16 Boots and shoes, rubber: 1904 1914 _. 43.9 388.3 78.5 1925 252.4 17 Bread and other bakery products: 1904 1914 174.2 217.5 191.6 1925 275.8 18 Gas, manufactured: 1904 1914 187.2 233.2 163.1 1925... 193.1 19 Knit goods: 1904 1914 134.0 218.6 187.2 1925 317.2 20 Cutlery and edge tools: 1904.. 1914 139.0 389.0 137.9 1925 344.0 21 Leather, tanned, curried and finished: 1904 1914 114.0 233.2 135.0 1925 187.3 22 Jewelry: 1904 1914.. 127.1 168.1 144.2 1926 207.5 23 Metal-working machinery, including machine tools: 1904 1914 1 926 24 Contectio L904 1914 196.9 279.7 182.4 1926 _ 291.4 . \ 2^ umm ,-../( D AMU' Cities over 10 ' 000 population and o r\MlNr\ one million dollars in value added Q Q Q D 50 TO 100 MILLION DOLLARS 25 TO 50 MILLION DOLLARS 10 TO 25 MILLION DOLLARS |~1 5 TO 10 MILLION DOLLARS ■ IT NEW ENGLAND SURVEY U. S. DEPARTMENT OF COMMERCE j of Foreign and Domestic Commerce Domestic Commerce Division LOCALIZATION OF NEW ENGLAND MANUFACTURING (IN CITIES OVER 10.000 POPULATION) D.D. 3140-46 61232°— 29. (Face p. 177.) MANUFACTURES 177 LOCALIZATION OF NEW ENGLAND MANUFACTURING The way in which manufacturing activity is distributed within New England is presented here according to three kinds of political subdivisions. It is shown first according to States. In the second part are given the figures for cities and towns. (See Fig. 25.) A spe- cial tabulation of the manufacturing establishments in each county, classified according to the type of manufacturing, is given in the third part. LOCALIZATION BY STATES The next table shows the magnitude of manufacturing as a whole in the individual States. This is followed by a series of tables, one for each of the six States, showing the rank and importance of the principal industries of the State. This shows at a glance the kinds of manufacturing activity which are dominant in each State and their relative importance, as indicated by the number of establishments, wage earners, wages, cost of materials, value of products, and value added by manufacture, together w T ith the percentage relation (accord- ing to value added by manufacture) which each named industry bears to the total for the State. (See figs. 26-32.) Another table shows the position of each State in each of the 25 leading manufactures of New England. In some cases the figures for two or more States are combined. New England Industry, by States, All Manufactures, 1927 [All values in thousands: i. e., 000 omitted] Number of es- tablish- ments Wage earners Wages Materials Products Value added by manufacture State Amount Per cent of New England total Massachusetts 10, 037 2,877 1,497 1,426 1,028 880 578, 068 240, 806 120, 009 68, 142 65, 482 26, 241 705, 930 304, 504 138, 896 74, 212 72, 803 32, 305 1, 678, 812 596, 014 313, 107 208, 866 182, 106 69, 957 3, 317, 852 1, 284, 738 592, 233 372, 094 327, 528 134, 030 1, 639, 040 688, 724 279, 126 163, 228 145, 422 64, 073 55.0 Connecticut . . 23.1 Rhode Island 9.4 Maine 5.5 New Hampshire Vermont 4.9 2.1 Total- 17, 745 1, 098, 748 1, 328, 650 3, 048, 862 6, 028, 475 2, 979, 613 100.0 178 INDUSTRIAL STRUCTURE OF NEW ENGLAND IN DUSTRY COTTON GOODS BOOTS & SHOES (OTHER THAN RUBBER) ELECTRICAL MACHINERY(APPARATU«S8rSUPPlE$) WORSTED GOODS FOUNDRY & MACHINE SHOP PRODUCTS RUBBER GOODS, TIRES 8t TUBES PRINTING &.PUBLISHIN6(NEWSPAPER&PEW0DICA^ PRINTINGS: PUBLISHING (BOOK fife JOB) WOOLEN GOODS GAS, MANUFACTURED PAPER AND WOOD PULP BOOTS fit SHOES(RUBBER) TEXTILE MACHINERY 6c PARTS BREAD & OTHER BAKERY PRODUCTS DYEIN6&FJNISHJNG TEXTILES LEATHER(TANNED,CURRIEDaFINlSHED) CUTLERY & EDGE TOOLS CONFECTIONERY KNIT GOODS FURNITURE Figure 26. — Rank of leading- industries in Massachusetts according: to value added by manufacture in 1925 INDU STRY 10 20 30 40 MILLIONS OF DOLLARS 50 60 70 80 90 100 HO 120 130 I40~ HARDWARE FOUNDRY fife MACHINE SHOP PRODUCTS BRASS, BRONZE & OTHER NONFERROUS ALLOYS ELECTRICAL MACHINERY APPARATUS & SUPPLIES SILK MANUFACTURES COTTON GOODS PLATED WARE TYPEWRITERS 8c SUPPLIES HATS, FUR FELT PRINTING &PUBUSHJNG(NEW5PAPER&PERI0BICAi WOOLEN GOODS RUBBER GOODS METAL WORKING MACHINERyOno.. MACHINE TOOL! AMMUNITION, AND RELATED PRODUCTS CORSETS STEAM FITTINGS 8t HEATING APPARATUS GAS. MANUFACTURED BREAD & OTHER BAKERY PRODUCTS PAPER & WOOD PULP TOOLS NEW E NGLAND SURVEY J S DEPARTMENT OF COMMERCE Figure 27. — Rank of leading industries in Connecticut according to value added by manufacture in 1925 MANUFACTURES 179 INDUSTRY COTTON GOOOS WORSTED GOODS DYEING AND FINISHING TEXTILES JEWELRY SILK MANUFACTURES TEXTILE MACHINERY AND PARTSl COTTON SMALL WARES MILLIONS OF DOLLARS 10 EO 30 40 50 i i i i RHODE ISLAND WOOLEN GOODS FOUNDRY St MACHINE SHOP PRODUCTS RUBBER GOODS ELECTRICAL MACHINERY, APPARATUS & SUPPLIES PRINTING AND PUBLISHING ( N ptmooicAL 8 ') ■i ■ GAS (manufactured) BREAD AND OTHER BAKERY PRODUCTS ■i KNIT GOODS PRINTING AND PUBLISHING ( BOOK * JoB ) ■ SHIP & BOAT BUILDING (steel and wooden) ■ FANCY AND MISCELLANEOUS ARTICLES 1 LUMBER (planing mill products) I PAPER GOODS PAPER AND WOOD PULP BOOTS AND SHOES (other than robber) COTTON GOODS 1 MAINE WOOLEN GOODS WORSTED GOOOS LUMBER AND TIMBER PRODUCTS PRINTING AND PUBLISHING ( N g$So5SL *) BREAD AND OTHER BAKERY PRODUCTS CANNING & PRESERVING (fruits & vegetables) CANNING & PRESERVING (fish, etc.) ■ WOOD (TURNED * CARVED) CAR CONSTRUCTION AND REPAIRS ■ FOUNDRY A MACHINE SHOP PRODUCTS ■ GRANITE, SLATE AND OTHER STONE ■ LUMBER (PLANING MILL PRODUCTS) ■ PRINTING AND PUBLISHING (book * job) SHIP AND BOAT BUILDING GAS ( MANUFACTURE©) LIME NEW ENGLAND SURVEY BOXES (wooden) U S DFPARTMFNT OF COMMFRCF Figure 29. — Rank of 20 leading industries in Rhode Island and in Maine according to value added by manufacture in 192$ 180 INDUSTRIAL STRUCTURE OF NEW ENGLAND INDUSTRY BOOTS AND SHOES (other than rubber) COTTON GOODS PAPER AND WOOD PULP WOOLEN GOODS FOUNDRY AND MACHINE SHOP PRODUCTS LUMBER AND TIMBER PRODUCTS TfcXTILE, MACHINERY AND PARTS KNIT GOODS BOXES (wooden) PRINTING AND PUBLISHING ( n p \^ S d*cal *> PRINTING AND PUBLISHING ( B job *) MARBLE. GRANITE AND OTHER STONE BREAD AND OTHER BAKERY PRODUCTS LUMBER (planing mill products) FURNITURE BOOT AND SHOE FINDINGS ELECTRICAL MACHINERY, APPARATUS & SUPPLIES GAS, (manufactured) NEEDLES. PINS. ETC. CLOTHING (mens) MARBLE, GRANITE. SLATE & OTHER STONE WOOLEN GOODS METAL WORKING MACHINERY (m^K? tools) LUMBER AND TIMBER PRODUCTS PAPER AND WOOD PULP KNIT GOODS FURNITURE FOUNDRY AND MACHINE SHOP PRODUCTS FLOUR, FEED. ETC. CAR CONSTRUCTION AND REPAIRS MINERALS AND EARTHS COTTON GOODS PRINTING AND PUBLISHING ("periodical *) BUTTER, CHEESE. ETC. TOOLS LUMBER ("planing mill products) BREAD AND OTHER BAKERY PRODUCTS PREPARED MEDICINES AND COMPOUNDS PRINTING AND PUBLISHING Q°5oS *) WOOD, (.TURNED AND CARVED) MILLIONS OF DOLLARS NEW HAMPSHIRE VERMONT nJEW E NGLAND SURVEY -U S DEPARTMENT OF COMMERCE Figure 29. — Hank of 20 leading industries in New Hampshire and in Vermont accord- ing to value added by manufacture in 1925 MANUFACTURES 181 Leading Industries of Massachusetts, Ranked According to Value Added by Manufacture, 1927 Industry Es- tab- lish- ments Wage earners Wages (thou- sands of dollars) Cost of materials (thou- sands of dollars) Value of products (thou- sands of dollars) Value added by manufacture Thou- sands of dollars Cotton goods Boots and shoes, other than rubber.. Electrical machinery, apparatus, and supplies -. Worsted goods ._ Foundry and machine-shop products, n. e. c._ --- Printing and publishing, newspaper and periodical Printing and publishing, book and job. Rubber goods (other than rubber boots and shoes) and rubber tires and inner tubes -_ Paper - Boots and shoes, rubber Bread and other bakery products Woolen goods Dyeing and finishing textiles Textile machinery and parts Leather (tanned, curried, and fin- ished) Cutlery (not including silver and plated cutlery) and edge tools Gas, manufactured, illuminating and heating Knit goods _ Confectionery Furniture, including store and office fixtures Soap Clothing (except work clothes), men's, youth's, and boy's, n. e. c._ Clothing, women's, exclusive of cor- sets and allied garments and gar- ments made in knitting mills. Silk manufactures _ Jewelry Tools, not including edge tools, ma- chine tools, files, or saws Patent and proprietary medicines and compounds Boot and shoe findings, not made in boot and shoe factories Carpets and rugs, wool, other than rag. Boxes, paper and other, n. e. c Wire drawn from purchased bars or rods Boot and shoe cut stock, not made in boot and shoe factories Steam fittings and steam and hot- water heating apparatus Ship and boat building, steel and wooden, including repair work Car and general construction and re- pair, steam railroad repair shops.. _ Beverages Motor-vehicle bodies and motor- vehicle parts _. Petroleum refining Emery wheels and other abrasives and polishing appliances Stationery goods, n. e. c Slaughtering and meat packing, wholesale Marble, granite, slate, and other stone products Planing-mill products, not made in planing mills connected with saw- mills Machine tools... Paper goods, n. e. c First 45 industries All other State total for all industries 163 122 75 332 681 64 80 10 1,044 99 68 119 115 42 41 93 148 194 23 167 277 33 135 72 54 253 10 117 15 140 24 38 16 206 52 3 14 28 40 157 147 30 54 6,560 3,477 10, 037 90,875 55, 986 24, 759 35, 141 19, 898 5,664 8,569 10, 364 12, 127 12, 081 8,473 15, 923 13,826 12, 009 10, 768 3,407 4,079 9,660 8,373 8,077 1,027 6,488 6,022 7,357 5,216 4,589 1,017 5,157 4,473 5,300 3,805 2,606 3,320 4,185 4,833 1,182 3,993 1,077 1,753 2,608 3,191 2,166 2,298 2,159 2,007 457, 888 120, 180 578, 068 88, 090 65, 282 33,904 38, 667 30, 059 11,977 13, 294 13,298 15, 608 15, 471 11,028 19, 369 16, 229 16, 242 14, 588 4,174 6,047 9,339 7,244 11,027 1,396 7,393 7,206 7,616 6,574 5,838 1,102 5,822 5,613 5,135 6,242 3,008 4,905 6,479 7,842 1,651 5,878 1,615 2,795 2,656 4,127 3,820 3,876 3,315 2,414 555, 255 150, 675 705, 930 145,631 120, 354 42, 198 122, 809 30, 760 22, 077 13,090 56, 716 50, 383 18, 957 37, 102 40, 341 51, 434 15, 008 47, 861 5,883 16, 202 22, 316 28, 308 16, 682 14, 437 17, 097 19, 071 23, 219 12, 206 5,061 6,477 19, 868 10, 638 12, 505 11,292 40, 259 4,531 4,403 11,891 5,305 10, 073 32, 185 5,510 6,945 51,140 3,208 6,595 3,359 11,015 1, 252, 402 426,410 1,678,812 284, 706 237, 517 139, 349 195, 096 94, 149 72,314 57, 852 97, 718 91,095 56, 440 73, 706 73, 740 84, 459 46, 866 77, 649 33, 705 38, 658 43, 937 49, 674 36, 796 33, 497 33, 823 35, 649 38, 220 26, 781 19, 113 20, 190 33, 476 22, 680 24, 264 22, 882 50, 648 14,807 14, 152 20, 984 14, 160 18, 719 40, 291 13, 481 14, 763 58, 797 10, 833 14, 138 10, 830 18, 241 139, 075 117, 163 97, 151 72,287 63, 389 50,237 44, 762 41,002 40,712 37, 483 36, 604 33, 399 33, 025 31,858 29, 788 27, 822 22, 456 21,621 21, 366 20, 114 19, 060 16, 726 16, 578 15, 001 14, 575 14, 052 13, 713 13, 608 12,042 11, 759 11, 590 10, 389 10, 276 9,749 9,093 8,855 8,646 8,106 7,971 7,818 7,657 7,625 7,543 7,471 7,226 2, 510, 845 807, 007 1, 258, 443 380, 597 3, 317, 852 1, 639, 040 Note.— The abbreviation n. e. c. indicates "not elsewhere classified." 61232°— 30 13 182 INDUSTRIAL STRUCTURE OK XKW ENGLAND Leading Industries of Connecticut. Ranked According to Value Added by Manufacture, 1927 Industry Foundry and machine-shop products n. e. c Brass, bronze, and other nonferrous alloy and manufacture of these al- loys and coppers, n. e. c Hardware, n. e. c Electrical machinery, apparatus and supplies Cotton goods Silk manufactures. __ Typewriters and supplies.- Hats, fur, felt _ __. Plated ware Printing and publishing, newspaper and periodical Rubber goods (other than boots and shoes) and rubber tires and inner tubes Machine tools.. Woolen goods Clocks, time-recording devices, and clock movements Bread and other bakery products... Corsets and allied garments Gas, manufactured, illuminating and heating Steam-fitting and steam and hot- water heating apparatus Tools, not including edge tools, ma- chine tools, files, or saws Worsted goods Cotton small wares Dyeing and finishing textiles Paper Firearms __ Needles, pins, hooks and eyes, and snap fasteners Cutlery (not including silver and plated cutlery) and edge tools Printing and publishing, book and job Engines, turbines, and water wheels Clothing, women's, exclusive of cor- sets and allied garments and gar- ments made in knitting mills Boxes, paper and other n. e. c Stamped and enameled ware, n. e. c. Wire drawn from purchased rods or bars Sewing machines, cases, and attach- ments Planing-mill products, not made in planing mills connected with saw- mills _ W'irework, n. e. c First 35 industries All other industries State total for all industries. _. Es- tab- lish- ments 19 33 29 9 290 17 162 13 Wage earners 1, 575 1,302 2,877 16, 799 20, 442 18, 201 14,500 12, 639 9,183 8,721 5>548 5,536 1,951 4,419 5,183 5,938 4,891 2,099 3,138 1,447 2,513 2,830 3,055 2,733 2,551 1,898 3,018 2,353 2,585 1,721 1,206 2,404 2,021 1,881 894 1, 552 967 951 177, 768 63, 038 240, 806 Wages (thou- sands of dollars) 24,206 28, 538 22, 299 16, 999 13, 140 11,401 10, 701 7,999 7,352 3,520 5,716 7,364 7,265 5,751 3,128 2,805 2,262 3,536 3,734 4,397 2,965 3, 256 2,753 3,858 2,712 3,160 2,438 1,739 2,223 2,125 1,999 1, 395 2,077 1,503 1,135 Cost of materials (thou- sands of dollars) 227, 451 77, 053 25, 327 97, 279 21, 174 34, 799 26, 021 25, 417 5,207 20, 099 10, 549 5,320 20, 072 5,550 15, 634 4,101 8,934 6,838 5,184 2,900 4,112 14, 673 6,139 4,812 9,228 2,813 2,358 2,447 2,512 2,470 3,737 4, 592 2,805 3,600 581 2,490 1,745 411,419 184, 595 Value of products (thou- sands of dollars) 86, 168 152, 390 68, 013 75, 926 49, 178 47, 498 26, 135 37, 758 26, 173 20, 695 33, 591 19, 053 27, 842 16, 166 17, 435 15, 199 13, 319 10, 432 11, 586 22, 103 13, 460 11,779 16, 154 9,617 8,482 8,431 8,260 7,217 8,192 8,917 6,961 7,290 3,959 5,484 4,726 905, 490 379, 249 1,284,739 Value added by manufacture Thou- sands of dollars 55, 111 46,839 41, 127 23, 156 22, 081 20, 928 17, 659 15,624 15, 375 13, 519 13, 503 12, 208 12, 066 8,501 8,361 8,135 7,532 7,474 7,430 7,322 6,967 6,926 6,804 6,124 5,748 4,747 4,455 4,325 4,156 3,690 3,378 2, 994 2,981 494,071 194, 653 688, 724 Not*;.— The ahhreviation n. e. e. indicates " not elsewhere classsfied," Manufactures 183 Leading Industries of Rhode Island, Ranked Axjcording to \at.ik Added hy & I A N U V ACTU RE, 1 927 20 Industry Cotton goods Worsted goods Dyeing and finishing textiles Jewelry Silk manufactures Textile machinery and parts. Cotton small wares Woolen goods Foundry and machine-shop products, n. e. c Electrical machinery, apparatus, and supplies Printing and publishing, newspaper and periodical Rubber goods, other than tires, inner tubes, and boots and shoes Bread and other bakery products. _ . Gas, manufactured, illuminating and heating Knit goods Printing and publishing, book and job Fancy and miscellaneous articles, n. e. c Lace goods Bolts, nuts, washers, and rivets, not made in rolling mills Ship and boat building, steel and wooden, including repair work Paper goods, n. e. c Ice cream First 22 industries All other industries State total for all industries ._ _ Es- tab- lish- ments 66 71 62 188 31 41 50 24 47 14 27 133 4 21 935 562 1,497 Wage earners 26, 203 21,114 9,590 7,826 6,500 3,425 4,191 3,275 2,184 1,431 2,044 1,246 766 1,636 782 1,174 846 761 600 400 143 96, 846 23, 163 120, 009 Wages (thou- sands of dollars) 27, 587 22, 338 11, 521 8,696 7,853 4,766 4,151 4,162 3,290 1,914 1,342 1,907 1,651 1,089 1,783 1,068 906 927 456 209 109, 358 29, 538 138, 896 Cost of materials (thou- sands of dollars) 45, 669 79, 525 19, 566 16, 587 20, 698 4,497 8,523 11, 597 4,296 7,572 1,551 4,769 4,864 3,204 6,429 1,201 1,456 1,143 1,279 1,304 1,175 1,203 248, 108 64, 999 313, 107 Value of products (thou- sands of dollars) 90, 053 118,310 44, 979 35, 451 32,511 15, 390 16, 732 19, 256 10, 463 13, 355 6,682 9,377 7,512 10, 725 3,971 3,505 2,793 2,740 2,493 2,345 2,316 460, 565 131, 668 592, 233 Value added by manufacture Thou- sands of dollars 44, 384 38, 785 25, 413 18, 864 11,813 10, 893 8,209 7,659 6,167 5,783 5,131 4,837 4,513 4,308 4,296 2,770 2,049 1,650 1,461 1,189 1,170 1,113 212, 457 66, 669 279, 126 Per cent of State total 15.90 13.90 9.10 6.76 4.23 3.90 2.94 2.74 2.21 2.07 1.84 1.73 1.62 1.54 1.54 .99 .73 .59 .52 .43 .42 .40 76.12 23.88 100.00 Note. — The abbreviation n. e. c. indicates "not elsewhere classified.' 1 184 INDUSTRIAL STRUCTURE OF NEW ENGLAND Leading Industries of Maine, Ranked According to Value Added by Manu- facture, 1927 Industry Es- tab- lish- ments Wage earners Wages (thou- sands of dollars) Cost of materials (thou- sands of dollars) Value of products (thou- sands of dollars) Value added by manufacture Thou- sands of dollars Paper Boots and shoes other than rubber _. Cotton goods Woolen goods Worsted goods Pulp (wood and other fiber) Lumber and timber products, n. e. c. Printing and publishing, newspaper and periodical Bread and other bakery products Foundry and machine shop prod- ucts, n. e. c Wood, turned and shaped, n. e. c Canning and preserving, fish, crabs, shrimps, oysters, andclams... Car and general construction and re- pairs, steam railroad repair shops.. Marble, slate, granite, and other stone products Canning and preserving, fruits and vegetables, pickles, jellies, pre- serves, and sauces Planing mill products, not made in planing mills connected with saw- mills Printing and publishing, book and job Gas, manufactured, illuminating and heating Ice cream Wooden goods, n. e. c Boxes, wooden, except cigar boxes Shirts Ship and boat building, steel and wooden, including repair work Boot and shoe findings, not made in boot and shoe factories Toys (not including children's wheel goods or sleds), games, and play- ground equipment Furniture, including store and office fixtures Beverages Leather, tanned, curried, and fin- ished Flavoring extracts and flavoring sirups Clay products (other than pottery), and nonclay refractories First 30 industries All other State total for all industries 185 53 127 31 53 62 11 40 1,074 352 1,426 8,132 9,740 10, 195 6,140 4,244 3,752 3,898 973 946 1,048 1,482 1,888 1,239 924 916 499 360 234 193 414 543 602 264 344 268 95 175 30 236 11, 122 9,044 9,781 7,525 4,642 5,018 3,614 1,205 1,113 1,364 1,305 905 1,871 319 622 618 475 330 218 425 531 398 423 238 298 105 181 22 276 53, 145 19, 284 17, 351 16, 965 11, 368 30, 133 4,291 1,854 3,584 1,520 2,006 4,104 1,812 520 3,517 1,621 502 773 1,411 671 1,298 853 525 423 383 474 405 384 346 262 88, 595 36,663 34, 414 30, 025 21, 849 40, 280 10,664 6,596 6,894 4,272 4,671 6,589 4,007 2,697 5,323 2,952 1,677 1,875 2,498 1,654 2,126 1,647 1,307 1,132 1,040 873 831 777 684 35, 450 17, 379 17, 063 13, 060 10, 481 10, 147 6,373 4,742 3,310 2,752 2,665 2,485 2,195 2,177 1,806 1,331 1,175 1,102 1,087 983 828 794 782 709 707 566 468 447 431 422 60, 117 8,025 64, 287 9,925 181, 785 27, 081 325, 702 46, 392 143, 917 19,311 68, 142 74, 212 208, 866 372, 094 163, 228 Note.— The abbreviation n. e. c. indicates "not elsewhere classified.' MANLTFACTHIIKS 185 Leading Industries of New Ha mps hike, Ranked According to Value Added by Manufacture, 1927 Industry Cotton goods Boots and shoes, other than rubber __.. Woolen goods Foundry and machine shop products, n. e. c Paper Pulp (wood and other fiber) Textile machinery and parts Lumber and timber products, n.e.c Knit goods Boxes, wooden, except cigar boxes Printing and publishing, book and job Printing and publishing, newspapers and periodicals Planing-mill products, not made in planing mills connected with saw mills Bread and other bakery products Boot and shoe findings not made in boot and shoe factories Marble, granite, slate, and other stone products Furniture, including store and office fixtures Gas, manufactured, illuminating and heating Clay, products (other than pottery) and nonclay refractories W T ood, turned and shaped, n. e. c Cotton, small wares Needles, pins, hooks, and eyes, and snap fasteners Ice cream Electrical machinery, apparatus, and supplies Cooperage ._. First 25 industries All other -.. State total for all industries Es- tab- lish- ments 17 63 35 41 24 7 9 165 16 25 37 58 771 257 1,028 Wage earners 14, 722 12, 114 5,007 1,885 2,487 2,534 1,053 2,306 2,032 1,376 829 377 770 466 572 280 276 252 378 91 253 379 52, 024 13, 458 65, 482 (thou- sands of dollars) 15, 142 12, 151 6,141 2,692 3,204 3,064 1,370 2,500 1,785 1,376 1,219 578 956 620 596 1,046 797 350 407 282 241 402 127 226 392 57, 664 15, 139 72, 803 Cost of materials (thou- sands of dollars) 26, 772 30,008 13, 147 2,717 17, 670 12, 873 1,692 6,140 4,083 3,689 469 478 1,963 2,072 1,840 546 1,259 907 198 330 415 353 475 130, 799 51, 307 182, 106 Value of products (thou- sands of dollars) 57, 721 49, 853 24, 143 9,778 24,616 18, 545 7,324 10, 078 7,093 6,087 2,554 2,538 3,856 3,785 3,532 2,147 2,647 2,113 812 907 642 1,157 974 244. 777 82, 751 327, 528 Value added by manufacture Thou- sands of dollars 30, 949 19, 845 10, 996 7,061 6,946 5,672 5,632 3,938 3,010 2,398 2,085 2,060 1,893 1,713 1,692 1,601 1,388 1, 206 614 577 573 553 543 534 499 113, 978 31, 444 145, 422 Per cent of State total 21.28 13.65 7.56 4.86 4.78 3.90 3.87 2.71 2.07 1.65 1.43 1.42 1.30 1.18 1.16 1.10 .95 .83 .42 .40 .39 .38 .37 .37 .34 78.38 21.62 100.00 Note.— The abbreviation n. e. c. indicates "not elsewhere classified." 186 INDUSTRIAL STRUCTURE OF NEW ENGLAND Leading Industries of Vermont, Ranked According to Value Added by Manufacture, 1927 Industry Es- tab- lish- ments Wage earners (thou- sands of dollars) Cost of materials (thou- sands of dollars) Value of products (thou- sands of dollars) Value added by manufacture Thou- sands of dollars Per cent of State total Marble, granite, slate, and other stone products _ Machine tools _ Woolen goods Paper _. Lumber and timber products, n. e. e„. Knit goods Furniture, including store and office fixtures ._ Foundry and machine-shop products, n. e. c Cotton goods Wood, turned and shaped, n. e. c Printing*and publishing, newspapers and periodicals Car and general construction and re- pairs, steam railroad repair shops... Tools, not including edge tools, ma- chine tools, files, or saws Minerals and earths, ground or other- wise treated Feeds prepared for animals and fowls . Bread and other bakery products Patent and proprietary medicines and compounds Planing mill products, not made in planing mills connected with saw- mills Printing and publishing, book and 40b Paper goods, n. e. c Gas, manufactured, illuminating and heating Ice cream Textile machinery and parts Toys (not including childrens wheel goods or sleds), games and play- ground equipment Butter Condensed and evaporated milk Pulp (wood and other fiber)... Lime First 28 industries.. All other State total for all industries 203 5 15 14 127 7 716 164 5,205 1,377 2,619 982 1,652 1,184 1,183 704 1,008 756 243 715 459 209 148 279 132 373 201 91 46 202 97 126 170 8,411 1,997 3,058 1,196 1,534 1,103 1,319 1,081 1,055 361 1,055 474 283 165 382 428 436 201 128 71 273 329 122 117 162 202 7,870 2,469 6,982 5,767 1,634 2,425 1,383 1,012 1,361 970 254 703 814 287 7,244 1,456 1,301 367 1,752 343 531 193 228 2,867 2,052 632 344 21, 318 7,240 10, 940 8,712 4,552 5,160 3,508 3,119 3,146 2,401 1,461 1,908 1,933 1,389 8,300 2,465 1,597 2,114 1,141 2,340 870 1,054 678 3,320 2,486 1,039 700 20, 862 5,379 26, 719 5,586 53, 857 16,100 105, 583 28,447 26, 241 32, 305 69, 957 134, 030 13, 448 4,771 3,958 2,945 2,918 2,735 2,125 2,107 1,785 1,431 1,207 1,205 1,119 1,102 1,056 1,009 981 813 774 588 527 523 485 464 453 434 407 356 51, 726 12, 347 20.99 7.45 6.18 4.60 4.55 4.27 3.32 3.29 2.79 2.23 1.88 1.87 1.72 1.75 1.57 1.58 1.27 1.21 .92 .82 .82 .76 .72 .71 .64 .56 80.73 19.27 64, 073 100.00 Note.— -The abbreviation n. e. c. indicates "not elsewhere classified." MANUFACTURES 187 COTTON GOODS MILLIONS OF DOLLARS 20 40 60 80 100 120 140 MASSACHUSETTS RHODE ISLAND NEW HAMPSHIRE CONNECTICUT MAINE VERMONT ' 1 BOOTS AND SHOES (OTHER THAN RUBBER) MASSACHUSETTS NEW HAMPSHIRE MAINE VERMONT e» CONNECTICUT RHODE ISLAND 20 40 60 80 100 120 140 NO ESTABLISHMENTS i i i i I ELECTRICAL EQUIPMENT MASSACHUSETTS CONNECTICUT RHODE ISLAND NEW HAMPSHIRE MAINE VERMONT 20 40 60 80 100 120 140 STATISTICS NOT AVAILABLE I I I I I NO ESTABLISHMENTS WORSTED GOODS 20 40 60 80 \00 120 140 MASSACHUSETTS RHODE ISLAND MAINE CONNECTICUT NEW HAMPSHIRE a VERMONT ■ FOUNDRY AND MACHINE SHOP PRODUCTS 20 40 60 80 100 120 140 MASSACHUSETTS CONNECTICUT RHODE ISLAND NEW HAMPSHIRE MAINE VERMONT i ■ ■ 1 1 NEW ENGLAND SURVEY (D-D-4202-46) U. S. DEPARTMENT OF COMMERCE Figure 30.— Rank of New England States in leading industries according to value added by manufacture in 1925 188 INDUSTRIAL STRUCTURE OF NEW ENGLAND PAPER AND WOOD PULP MILLIONS OP DOLLARS 20 40 MAINE MASSACHUSETTS NEW HAMPSHIRE CONNECTICUT VERMONT RHODE ISLAND <1Eh TS ■ 1 NO ESTABLISH i i i WOOLEN 600DS 20 40 MASSACHUSETTS MAINE CONNECTICUT NEW HAMPSHIRE RHODE ISLAND ■ VERMONT ■ PRINTING AND PUBLISHING NEWSPAPERS AND PERIODICALS 20 40 MASSACHUSETTS CONNECTICUT RHODE ISLAND ■ MAINE 1 NEW HAMPSHIRE 1 VERMONT 1 RUBBER GOODS TIRES AND INNER TUBES MASSACHUSETTS CONNECTICUT RHODE ISLAND MAINE NEW HAMPSHIRE) AND VERMONT/ 20 40 STATISTICS NOT AVAILABLE I I I I I NO ESTABLISHMENTS J I I I l_ HARDWARE 20 40 CONNECTICUT MASSACHUSETTS RHODE ISLAND, MAINE. NEW HAMPSHIRE.^VERMOMT 1 1 NEW ENGLAND SURVEY DEPARTMENT OF COMMERCE DYEING AND FINISHING TEXTILES MILLIONS OF. DOLLARS 20 40 MASSACHUSETTS RHODE ISLAND CONNECTICUT MAINE AND ) NEW HAMPSHIRE) VERMONT T AVAILABLE 1 1 5HMENTS 1 1 ■ STATISTICS NO 1 1 NO E5TABLI 1 1 BRASS, BRONZE, COPPER, ETC. 20 40 CONNECTICUT MASSACHUSETTS MAINE, NEW HAMP-) SHIRE, e. VERMONT/ ■ SILK MANUFACTURES CONNECTICUT MASSACHUSETTS RHODE ISLAND MAINE & NEW HAMPSHIRE VERMONT 20 40 NO ESTABLISHMENTS _J I I I I PRINTING AND PUBLISHING BOOK AND JOB 20 40 MASSACHUSETTS CONNECTICUT RHODE ISLAND NEW HAMPSHIRE MAINE VERMONT ■ 1 1 1 1 TEXTILE MACHINERY AND PARTS 20 40 MASSACHUSETTS RHODE ISLAND NEW HAMPSHIRE CONNECTICUT VERMONT MAINE ILA 3LE ■ 1 1 5TAT ISTIL 5 NO T AYi ... (DD-420ZA-46) Figure 31. — Bank of New England States in leading industries in 1925 MANUFACTURES 189 BOOTS AND SHOES, RUBBER MILLIONS OF DOLLARS 10 20 30 MASSACHUSETTS RHODE ISLAND AND] CONNECTICUT J MAINE, NEW HAMPSHIRE) AND VERMONT J NO ESTABLISHMENTS LEATHER, TANNED, CURRIED, AND FINISHED MILLIONS OF DOLLARS 10 20 30 MASSACHUSETTS NEW HAMPSHIRE RHODE) ISLAND, AND VERMONT) CONNECTICUT! AND MAINE j 1 1 BREAD AND OTHER BAKERY PRODUCTS * 10 20 30 MASSACHUSETTS CONNECTICUT RHODE ISLAND ■ MAINE 1 NEW HAMPSHIRE 1 VERMONT 1 JEWELRY 10 20 30 RHODE ISLAND MASSACHUSETTS CONNECTICUT MAINE NEW HAMPSHIRE] AND VERMONT J STATISTICS NOT AVAILABLE > L I NO ESTABLISHMENTS I i I GAS, MANUFACTURED 10 20 30 MASSACHUSETTS CONNECTICUT RHODE ISLAND ■ NEW HAMPSMIPE 1 MAINE i VERMONT METAL WORKING MACHINERY 10 20 30 CONNECTICUT MASSACHUSETTS NEW HAMPSHIRE] AND VERMONT j RHODE ISLAND MAINE STATISTICS NOT AVAILABLE I I I NO ESTABUSHMENTS KNIT GOODS 10 20 30 MASSACHUSETTS RHODE ISLAND ■ NEW HAMPSHIRE ■ CONNECTICUT 1 VERMONT 1 MAINE STATISTICS NOT AVAILABLE i i i CUTLERY AND EDGE TOOLS 10 20 30 MASSACHUSETTS CONNECTICUT MAINE, NEW HAMPSHIRE,! AND RHODE ISLAND / VERMONT STATISTICS HOT AVAILABLE I I I NO ESTABLISHMENTS NEW E NGLAND SURVEY U. S. DEPARTMENT OF COMMERCE CONFECTIONERY 10 20 30 MASSACHUSETTS CONNECTICUT RHODE ISLAND, MAINE. NEW HAMPSHIRE.AND VERMONT 1 1 FURNITURE 10 20 30 MASSACHUSETTS VERMONT ■ CONNECTICUT I NEW HAMPSHIRE i MAINE AND ! RHODE ISLAND) 1 (D-D-4202-B~46) Figure 32.— Rank of New England States in leading industries in 1925 190 INDUSTRIAL STRUCTURE OF NEW ENGLAND Position of States in Leading New England Manufactures [Ranked according to value added by manufacture in 1927] Product 1 . Cotton goods 2. Boots and shoes other than rubber. 3. Electrical machinery and supplies. 4. Foundry and machine-shop products, n. e. s. 5. Worsted goods.. 6. Paper. 7. W T oolen goods.. 8. Printing and publishing, newspaper and periodicals. 9. Dyeing and finishing textiles. 10. Brass, bronze, and other nonferrous alloys and coppers. ]]. Rubber goods and tires and inner tubes (other than rubber boots and shoes). 12. Printing and publishing, book and job. Massachusetts . . Rhode Island New Hampshire. Connecticut- Maine Vermont Massachusetts . . New Hampshire . Maine Massachusetts . . Connecticut Rhode Island New Hampshire . Massachusetts.. Connecticut New Hampshire . Rhode Island Maine Vermont Massachusetts . . Rhode Island Maine Connecticut Massachusetts .. Maine New Hampshire Connecticut Vermont. Massachusetts .. Maine_„ Connecticut New Hampshire Rhode Island Vermont Massachusetts .. . Connecticut Rhode Island.... Maine... New Hampshire Vermont Massachusetts . . Rhode Island . . . Connecticut Connecticut Massachusetts.. Rhode Island New Hampshire Massachusetts. . Connecticut Rhode Island . . . Massachusetts. . Connecticut Rhode Island. .. New Hampshire Maine.. Vermont Value of product $284, 706, 000 90, 054, 000 57, 722, 000 49, 178, 000 34, 414, 000 3, 146, 000 237, 517, 000 49, 853, 000 36, 663, 000 139, 349, 000 75, 926, 000 13, 355, 000 887, 000 94, 149, 000 86, 168, 000 9, 778, 000 10, 463, 000 4, 272, 000 3, 119, 000 195, 095, 000 118, 310, 000 21, 849, 000 22, 103, 000 91, 095, 000 88, 595, 000 24, 616, 000 16, 154, 000 8, 712, 000 73, 740, 000 • 30,025,000 27, 842, 000 24, 143, 000 19, 256, 000 10, 940, 000 72, 314, 000 20, 695, 000 6, 682, 000 6, 596, 000 2, 538, 000 1, 461, 000 84, 460, 000 44, 979, 000 11,779,000 152,390,000 12,688,000 663,000 402,000 97, 718, 000 33, 591, 000 9, 606, 000 57, 852, 000 8, 260, 000 3,971,000 2, 554, 000 1,677,000 1,141,000 Value added by manu- facture State total $139, 075, 000 44, 384, 000 30, 949, 000 23, 156, 000 17,064,000 1, 785, 000 117,163,000 19, 845, 000 17, 379, 000 97, 151, 000 41, 127, 000 5, 783, 000 534, 00v> 63, 390, 000 60, 841, 000 7, 061, 000 6, 167, 000 2, 752, 000 2, 107, 000 72, 287, 000 38, 785, 000 10, 481, 000 7, 430, 000 40, 712, 000 35, 450, 000 6, 946, 000 6, 926, 000 2, 945, 000 33, 399, 000 13, 060, 000 12, 208, 000 10, 996, 000 7, 659, 000 3, 958, 000 50, 237, 000 15, 375, 000 5, 131, 000 4, 742, 000 2, 060, 000 1, 207, 000 33, 025, 000 25, 414, 000 6, 967, 000 55,111,000 5, 105, 000 345, 000 284, 000 41,002,000 13, 519, 000 4, 837, 000 44, 762, 000 5, 748, 000 2, 770, 000 2, 085, 000 1,174,000 774,000 MANUFACTUKKS 191 Position of States in Leading New England Manufactures — Continued [Ranked according to value added by manufacture in 1927] Product State Value of product Value added by manu- facture State total Percent ' of New England total 13. Bread and other bakery products. 14. Textile machinery and parts.. 15. Hardware, n. e. s_ 16. Silk manufactures _ 17. Gas, manufactured, illuminating and heating. 18. Boots and shoes, rubber . 19. Knit goods 20. Cutlery and edge tools, not including silver and plate. 21. Jewelry _ 22. Leather, tanned, curried, and finished 23. Metal w T orking machinery, including ma- chine tools. 24. Furniture, including store and office fix- tures. 25. Qranite, marble, slate, and other stone products. Massachusetts Connecticut.. Rhode Island Maine _. New Hampshire. . Vermont Massachusetts Rhode Island New Hampshire . . Connecticut Vermont Connecticut Massachusetts Rhode Island Connecticut Massachusetts Rhode Island Massachusetts Connecticut Rhode Island New Hampshire.. Maine Vermont Massachusetts Massachusetts Rhode Island New Hampshire.. Connecticut Vermont Maine.-. Massachusetts Connecticut Rhode Island Massachusetts Massachusetts Connecticut Maine-. Connecticut Massachusetts Vermont New Hampshire. . Massachusetts Connecticut. Vermont New Hampshire. . Maine ... Rhode Island Vermont Massachusetts Maine. New Hampshire . Connecticut. Rhode Island $73, 706, 000 17, 435, 000 9, 377, 000 6, 894, 000 3, 785, 000 2, 465, 000 46, 866, 000 15, 390, 000 7, 324, 000 2, 328, 000 678,000 68, 013, 000 3, 080, 000 343, 000 47, 498, 000 38, 220, 000 32, 511, 000 38, 658, 000 13, 320, 000 7, 512, 000 2, 113, 000 1, 875, 000 870,000 56, 440, 000 43, 937, 000 10, 724, 000 7, 093, 000 5, 181, 000 5,160,000 90,000 33, 705, 000 8, 431, 000 35, 451, 000 26, 781, 000 77, 649, 000 1, 455, 000 832,000 21, 833, 000 10, 830, 000 7, 240, 000 406,000 36, 796, 000 4, 466, 000 3, 508, 000 2, 647, 000 1, 040, 000 602,000 21, 318, 000 10, 834, 000 2, 697, 000 2, 147, 000 1, 794, 000 1, 389, 000 $36, 604, 000 8, 501, 000 4, 513, 000 3, 310, 000 1, 713, 000 1, 009, 000 31, 858, 000 10, 893, 000 5, 632, 000 1, 583, 000 485, 000 46, 839, 000 1, 896, 000 165, 000 22, 082, 000 15, 001, 000 11, 813, 000 22, 456, 000 8, 135, 000 4, 308, 000 1, 206, 000 1, 102, 000 527,000 37, 483, 000 21, 621, 000 4, 296, 000 3, 010, 000 2, 862, 000 2, 735, 000 43,000 27, 822, 000 5, 984, 000 18, 864, 000 14, 576, 000 29, 788, 000 487, 000 447, 000 15, 500, 000 7, 471, 000 4, 771, 000 275,000 20, 114, 000 2, 679, 000 2, 125, 000 1, 389, 000 566,000 285, 000 13, 448, 000 7, 625, 000 2, 177, 000 1,600,000 1, 245, 000 952,000 65.77 15.28 8.11 5.95 3.08 1.81 63.15 21.59 11.16 3.14 .19 95.78 3.88 .34 45.16 30.68 24.16 59.51 21.56 11.42 3.19 2.92 1.40 100.00 62.55 12.43 8.71 8.28 7.91 .12 82.30 17.70 56.41 43.59 1.59 1.45 55.32 26.67 17.03 74.07 9.87 7.82 5.11 2.08 1.05 49.72 28.19 8.05 5.92 4.60 3.52 Note. — The abbreviation n. e. c. indicates " not elsewhere classified." 192 INDUSTRIAL STRUCTURE OF NEW ENGLAND CONCENTRATION IN CITIES To show the importance of individual cities in the manufacturing activity of New England, data are presented in the following tables giving the total manufacturing income of each city and town for which separate totals are available for 1927. Along with this information is given the official estimates of total population as of July 1, 1925. In these tables each city is given its numerical rank according to value added by its manufactures and its rank according to population. Cities in which the numerical rank of manufactures is smaller than the numerical rank of population are those which depend upon manu- facturing for their income to a higher degree than their population alone would indicate; while cities in which the numerical rank of manufacturing is greater than their rank in population are those with lesser dependence on manufacturing as a source of income. For example, Cambridge, Mass., ranks fourth in manufacturing importance but is ninth in population, thus indicating a high degree of manufacturing activity in that city. Similarly, Waterbury, Conn., ranks eleventh in manufactures but thirteenth in population, again showing high manufacturing activity. On the other hand, Portland, Me . , ranks forty-fourth in manufacturing but seventeenth in population, indicating its lesser importance as a manufacturing city. Frequently a considerable amount of manufacturing activity takes place in areas immediately adjacent to a city, but outside of its corporate limits. In comparing the figures in these tables it should be borne in mind that they cover only the corporate limits of the city and exclude activities in adjacent territories. Sometimes several cities and towns are so close to each other that they form one large urban community in which the manufacturing activities of one city extend over the boundaries of another, yet in the New England form of town and city organization each retains its separate identity. RANK ACCORDING TO MANUFACTURING INCOME In the first series of tables that follow, 108 cities and towns are ranked in four arbitrary groups, according to the volume of their total income from manufactures. The first group comprises 26 cities whose total income from manu- facturing exceeded $25,000,000 each in 1927. These had over one- half (54 per cent) of the total manufacturing income of the six States. Of these 26 cities, 15 were in Massachusetts, 7 in Connecticut, 3 in Rhode Island, and 1 in New Hampshire. The second group includes 28 cities whose income from manufac- turing was between $10,000,000 and $25,000,000. They were dis- tributed by States thus: Massachusetts, 17; Connecticut, 7;«Rhode Island, 1 ; Maine, 2; and New Hampshire, 1. The third group contains 33 cities whose individual incomes were between $5,000,000 and $10,000,000. Sixteen of these were in Massachusetts, 5 in New Hampshire, 3 in Connecticut, 4 in Rhode Island, 3 in Maine, and 2 in Vermont. The fourth group contains 21 cities and towns, each of which had an income from its manufactures between $1,000,000 and $5,000,000. Fourteen of these were in Massachusetts. 3 in Maine, 1 in Rhode Island) 1 in Connecticut, 1 in New Hampshire, and 1 in Vermont. MANTJFACTUIIKS 193 This series of tables enables the reader to locate the rank and the manufacturing importance of any New England city. Ap- proximately 78 per cent of the total manufacturing activity of New England is accounted for by the 108 incorporated cities and towns included in the following tables. The distribution, by States, of the remaining 22 per cent follows : \i:w England Manufacturing in and Outside of Listed Cities Value added by manufacture, 1927 State State total (thousands of dollars) In cities listed Outside of cities listed Thousands of dollars Per cent of total Thousands dollars Per cent of State total Massachusetts 1, 639, 040 688, 724 279, 126 163, 228 145, 422 64, 073 1, 424, 892 510, 652 222, 465 57, 688 91, 686 14, 556 87.0 74.1 79.7 35.3 63.0 22.7 214, 148 178, 072 56, 661 105, 540 53, 736 49, 517 13.1 Connecticut 25.9 Rhode Island 20.3 M aine 64.7 New Hampshire 37.0 Vermont . . . _ 77.3 Total 2, 979, 613 2, 323, 317 78.0 656, 296 22.0 Rank of New England Cities in Order of Manufacturing Activity Group 1.— CITIES EXCEEDING $25,000,000 IN VALUE ADDED BY MANUFACTURE City Value added by all manufactures, 1927 Estimated popu- lation, 1925 Rank Amount Rank Number Boston, Mass - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 $310, 021, 000 105, 372, 000 97, 371, 000 90, 749, 000 87, 360, 000 70,115,000 69, 953, 000 64, 309, 000 60, 656, 000 57, 872, 000 56, 342, 000 55, 807, 000 49, 638, 000 43, 344, 000 42, 687, 000 42, 364, 000 35, 104, 000 33, 542, 000 32, 907, 000 31, 558, 000 30, 778, 000 30, 596, 000 29, 904, 000 29, 174, 000 27, 400, 000 25,419,000 1 2 3 9 6 4 5 12 10 7 13 15 8 18 19 21 11 16 25 29 20 47 34 33 50 35 . 779, 620 Providence, R. I . 267, 918 Worcester, Mass 190, 757 Cambridge, Mass . 119, 669 Bridgeport, Conn.. 1 143, 555 New Haven, Conn 178, 927 Hartford, Conn.. . 160, 197 Lynn, Mass 103, 081 New Bedford, Mass 119, 539 Springfield, Mass.. - -- 142, 065 Waterbury, Conn 100,000 Lawrence, Mass - 93, 527 Fall River, Mass .. 128, 993 Pawtucket, R. 1 69, 760 New Britain, Conn 68, 039 Holyoke, Mass 60, 335 Lowell, Mass 110, 296 Manchester, N. H 83, 097 Woonsocket, RI - 49, 681 Pittsfield, Mass --- 46, 877 Brockton, Mass - 65, 343 Watertown, Mass . 25, 480 Chicopee, Mass . 41, 882 Everett, Mass 42, 072 Bristol, Conn - 24, 652 Stamford, Conn . - 40, 737 L94 INDUSTRIAL STRUCTURE OF NEW ENGLAND Kank of New England Cities in Order of Manufacturing Activity — Oontd. Group 2.— CITIES BETWEEN $10,000,000 AND $25,000,000 IN VALUE ADDED BY MANUFAC- TURE City Value added by all manufactures, 1927 Rank Amount Estimated popu- lation, 1925 Rank Number Meriden, Conn Haverhill, Mass Nashua, N. H Fitchburg, Mass Norwalk, Conn D anbury, Conn Chelsea, Mass Somerville, Mass Maiden, Mass Salem, Mass Taunton, Mass Quincy, Mass Peabody, Mass Attleboro, Mass Torrington, Conn... Norwood, Mass Waltham, Mass Portland, Me Lewiston, Me Ansonia, Conn Southbridge, Mass.. North Adams, Mass Framingham, Mass. Middletown, Conn.. Leominster, Mass... Central Falls, R. I.- Gardner, Mass Norwich, Conn $24, 636, 000 23, 898, 000 21,132,000 20, 342, 000 18, 609, 000 16, 497, 000 16,464,000 16,223,000 16, 053, 000 15, 942, 000 15,760,000 15,451,000 15, 062, 000 14, 531, 000 14,195,000 13, 787, 000 13,290,000 13,261,000 12, 922, 000 12,501,000 12, 070, 000 11,732,000 11,141,000 11,074,000 10, 972, 000 10, 641, 000 10, 457, 000 10, 038, 000 36, 292 49, 232 29, 723 43, 609 29,743 1 18, 943 47,247 99, 032 51, 789 42,821 39, 255 60, 055 19,870 20, 623 24, 533 14, 151 34, 746 75, 333 34, 932 19, 052 15, 489 22, 717 21, 078 22, 911 22, 120 25, 403 18, 730 23. 118 Group 3— CITIES BETWEEN $5,000,000 AND $10,000,000 IN VALUE ADDED BY MANUFAC- TURE Berlin, N. H Auburn, Me Beverly, Mass Northampton, Mass. . . Bristol, R. I Naugatuck, Conn Clinton, Mass Amesbury, Mass Cranston, R. I Plymouth, Mass Newton, Mass West Springfield, Mass Westfield, Mass Woburn, Mass < oncord, N. H Biddeford, Me Laconia, N. H Newbury port, Mass. - Basthampton, Mass \\ atfrville, Me North bridge, Mass New London, Conn Weymouth, Mass WiUimantic, Conn tovidence, R. I.. Dover, N. B Barre, Vt ( Greenfield, Mass ... Koene, N. II ( tloucefter, Mass Burlington, Vt, Webetei West Warwick, R. I of L920, 59, 737, 000 70 9, 570, 000 74 9, 132, 000 58 9, 091, 000 52 9, 059, 000 99 8, 826, 000 76 8, 804, 000 89 8, 638, 000 106 8, 439, 000 40 7, 918, 000 95 7, 820, 000 23 7, 796, 000 82 7, 785, 000 66 7, 128, 000 72 7, 012, 000 59 6, 977, 000 71 6, 973, 000 105 6, 631, 000 79 6, 451, 000 103 6, 445, 000 88 6, 274, 000 105 6, 266, 000 43 6, 090, 000 75 6, 087, 000 97 5,917,000 46 5, 828, 000 96 5, 590, 000 107 5, 475, 000 83 5, 437, 000 101 5, 286, 000 54 5, 223, 000 53 5, 134, 000 93 5, 094, 000 73 18, 552 18, 073 22, 685 24, 145 12, 707 16, 370 14, 180 11, 229 34, 471 13, 176 53, 003 15, 326 19, 342 18. 370 22, 546 18, 532 11,300 15, 656 11,587 14, 424 JO, 051 29, 103 17, 253 12,952 26,088 i 13, 029 i 10,008 15, 246 11,855 23, 375 24, 089 13,389 18, 215 MANtrFACTTJRES 195 Hank of New England Cities in Ordeb <>k Manufacturing Activity — Contd. GROUP i. CITIES AM) TOWNS BETWEEN $1,000,000 AND $5,000,000 IN VALUE ADDED in MANUFACTURE City Value added by all manufactures, 1927 Rank Amount Estimated popu- lation, 1925 Rank Number Adams, Mass Augusta, Me Marlboro, Mass Rutland, Vt Winchester, Mass Braintree, Mass... Wakefield, Mass.. Milford, Mass Danvers, Mass Medford, Mass I>erby, Conn Methuen, Mass... Bangor, Me.. Melrose, Mass Portsmouth, N. H Natick, Mass Newport, R. I Bath, Me Arlington, Mass.. Brookline, Mass.. Dedham, Mass... 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 941,000 706,000 512, 000 733, (XX) 691,000 599, 000 477,000 378,000 345,000 192,000 647,000 497,000 493,000 358, 000 025,000 012, 000 692, 000 315,000 267,000 048, 000 045,000 92 87 77 7S 104 94 80 85 102 27 100 63 45 64 13, 525 14, 625 16, 236 15,752 1 1 . 666 13, 193 15,611 14,781 11,798 47. 627 12, 509 20, 606 26, 644 20, 165 14, 871 12, 871 27, 757 i 14, 731 24, 943 42, 681 13,918 i Census of 1920. LOCALIZATION BY COUNTIES In order to show the local importance and type of manufactures in different sections of the various States, there is presented here a table containing the number of manufacturing establishments in each of the 67 counties of New England in 1925. The total number of manu- facturing establishments of all kinds is shown for each State and each county in the first column of the table. The Biennial Census of Manufactures for 1925 published no figures for individual counties. The table following was worked up from unpublished census data for presentation here, in order to show the location of New England manufacturing activity in as great detail as is possible from official sources. It is appreciated that a simple enumeration of manufacturing plants is not an accurate indicator of the volume of manufacturing activity^ within a county, because a single large establishment may be more important than a dozen smaller plants. But since each establishment is a separate business unit, this compilation by counties will be of distinct commercial assistance in locating these units. Note. — The Market Data Handbook of the United States, recently published by the Department of Commerce (Domestic Commerce Series No. 30), includes 1927 data for each county in New England showing the number of establishments and wage earners, volume of manufacturing, and additional data on industry and marketing. 196 INDUSTRIAL STRUCTUIJK OF NEW ENGLAND Number of Establishments in Each County of New England, by Major Groups of Manufacture, 1925 S Metals P o •S3 a 03 .2 a> be V} o 1 a> i 03 i >» a State and county >> a T3 a 1 en & O u 1 3 Xi o < a o o l 3 08 E f£ XL O !■ o < Massachusetts.. . 10, 237 828 455 436 1,489 1,135 67 375 1,067 1,837 475 760 335 978 Barnstable. .. 35 239 1 15 1 5 1 2 35 5 21 10 54 2 4 8 43 3 20 ? Berkshire 8 17 17 Bristol 837 77 38 118 157 14 2 16 62 184 27 40 23 79 Dukes 3 1,517 1 92 1 243 ""63" 1 57 Essex. 112 30 18 87 661 4 22 30 98 Franklin 148 13 18 1 13 3 10 13 26 4 34 3 10 Hampden 642 69 33 24 63 8 1 66 84 124 19 21 27 103 Hampshire... Middlesex 140 10 6 1 23 2 1 11 13 27 4 23 7 12 1,693 148 83 76 222 98 22 69 167 359 117 137 52 143 Nantucket. _. 4 439 1 42 2 56 1 24 Norfolk 28 13 12 75 30 11 17 16 83 32 Plymouth 448 28 32 7 28 138 10 11 35 58 27 46 8 20 Suffolk 2,813 175 109 134 549 125 11 97 451 499 133 173 51 306 Worcester 1,279 152 87 44 235 48 5 39 80 194 50 161 28 156 Connecticut 2,977 310 258 211 424 31 23 99 274 572 89 240 117 329 Fairfield 698 90 66 45 135 9 6 21 55 121 26 32 19 73 Hartford 635 77 74 41 48 5 1 30 71 121 16 42 32 77 Litchfield 167 15 14 13 12 1 3 16 43 1 30 7 12 Middlesex 144 13 14 11 24 1 2 7 22 6 13 6 25 New Haven.. 906 82 80 95 84 8 12 22 101 180 26 68 39 109 New London. 234 15 9 5 62 6 1 16 13 52 10 17 11 17 Tolland 66 127 3 15 21 38 4 3 2 9 11 22 1 3 11 27 3 10 Windham 1 1 2 6 Rhode Island 1,627 120 67 300 417 13 9 31 106 277 56 60 39 132 Bristol 40 79 42 1,397 5 4 2 109 11 45 1 330 2 1 2 7 9 84 14 12 16 215 2 2 ""28" 3 Kent 1 3 2 50 2 4 50 3 Newport 8 Providence. .. 66 300 13 6 30 116 Washington. _ 69 30 1 4 20 1 4 7 2 Maine 1,615 44 19 17 139 57 2 58 116 468 36 457 78 124 Androscoggin 177 59 296 5 2 10 18 2 18 17 1 8 1 .... 10 1 13 13 4 33 55 28 84 5 2 10 31 16 57 13 1 11 9 Aroostook 2 Cumberland . 6 14 31 Franklin 52 56 140 2 2 3 14 1 1 7 .... 1 2 2 11 13 20 42 ...... 28 15 30 1 13 6 2 Hancock 2 Kennebeck--. 9 2 9 7 Knox. 78 35 117 168 2 1 12 1 1 17 1 5 2 6 14 21 11 27 37 2 ...... 8 11 63 41 10 1 2 4 16 Lincoln 9 Oxford 1 6 3 4 .... 4 9 10 Penobscot 4 2 22 Piscataquis . 39 7 1 3 6 18 4 Sagadahoc. . 39 3 5 2 4 2 7 2 9 3 2 Somerset 94 2 18 3 4 4 25 34 2 2 Waldo 51 93 121 1,113 4 2 15 113 1 --- 1 1 1 39 2 4 9 89 8 50 34 191 1 33 32 24 40 357 2 2 3 63 1 Washington.. 1 3 61 2 2 15 ..... 20 4 York 7 87 - — 5 New Hampshire . 45 Belknap 57 7 1 3 13 1 1 3 9 1 17 1 Carroll 53 125 10 4 1 6 4 3 3 8 ""16" 29 63 5 5 1 Cheshire 8 1 1 8 8 Coos 51 111 3 5 1 ..... 2 14 2 4 --" 4 5 4 14 15 8 2 1 15 51 1 3 2 Grafton 5 Hillsborough. 275 23 5 4 28 27 6 22 61 7 60 20 12 Merrimack... 151 7 4 8 17 3 5 11 30 3 42 13 8 Rockingham. 125 3 1 1 5 26 1 11 24 5 38 8 2 Strafford 113 3 1 1 12 15 7 12 20 3 27 7 5 Sullivan 52 2 1 1 8 2 2 5 13 1 15 1 1 Vermont 1,039 43 20 8 51 6 21 67 238 22 287 243 33 Addison 40 62 4 3 16 8 ..... 16 18 2 5 2 Bennington 2 4 1 10 5 4 ( alcdonia 88 106 3 6 1 3 2 1 2 4 12 28 33 3 4 26 24 18 2 ?, Chittenden.. 8 2 10 Essex. 15 53 1 1 1 5 3 18 ...... 9 12 1 5 Franklin.... 2 2 2 1 2 Grand Isle 4 u 55 4 7 18 Lamoille 2 1 1 2 3 1 17 29 3 1 1 Orange 1 3 Orleans 53 117 222 3 8 4 2 2 4 ..... 2 6 7 4 7 7 14 25 23 ..... 3 21 18 27 7 43 145 Rutland 3 Washington. 2 Windham 90 99 1 12 2 2 1 1 2 13 10 9 6 17 24 1 1 40 30 3 8 4 Wind or 2 METAL MANUFACTURES The industries which depend primarily upon metals for their raw materials comprise the most important group of all New England manufactures when regarded as a source of revenue to the region. It is estimated that in their contribution to value added by manufac- ture the metal industries now represent about one-third of the New England manufacturing activity. These industries contain a larger number of establishments than any other type of manufacturing in New England and pay in wages nearly as much as all the textile industries. In dealing with this large and varied group of industries the plan is first to present a brief summary for the group as a whole and then to discuss separately each of the major branches of metal manu- facture. The discussions are based upon two main sources of information. The first is a detailed analysis of data from the Biennial Census of Manufactures, which provides the most complete summaries obtain- able. This basic information is amplified by replies from a large number of concerns in response to a questionnaire covering their manufacturing and marketing experience and practice. Upward of 1,100 New England concerns in the various metal industries cooper- ated in providing the information summarized in the following pages. The discussion thus presents a fairly representative picture of the metal industries of New England. The metal industries provide a manufacturing income to the region between 900 million and a billion dollars a year, as shown by the value added by manufacture. The amount for 1925 was $936,761,000, which represented 31.9 per cent of the income from all New England manufacturing activity. These industries gave employment to an average of 317,000 workers in that year and paid more than $427,- 000,000 in wages. Their importance as a market for materials used in manufacturing, including fuel, power, and supplies, is shown by an outlay of $676,365,000. As a provider of commodities for the Nation's consumption, the importance of the New England metal industries is indicated by a gross value of products considerably in excess of one and one-half billion dollars. While these industries are foremost as a source of revenue to New England, they are surpassed in the number of wage earners by the textile group. The metal industries accounted for a little more than one-fourth of the total wage earners engaged in manufacturing, while textiles employed somewhat over a third. Although the metal industries accounted for but 28.2 per cent of the total number of wage earners, they paid 31.9 per cent of all the wages. The average wage in the metal industries of New England was considerably higher than that in other types of manufacturing, being $1,347.50 per worker, in contrast to an average of $1,133 per wage earner for all 61232 °— 30 14 197 198 [NDUSTRIAL STRUCTURE OF NEW ENGLAND other manufacturing. In proportion to the value added by manufac- ture, wages in this group rank higher than in any other general group. CHARACTERISTICS OF THE GROUP The metal industries comprise a wide variety of products. The Biennial Census of Manufactures gives figures for 83 distinct metal industries in the United States, and of this number there are 55 in New England which are important enough to have separate statistics. Their products find a way into markets which are largely industrial. They are thus affected to a great extent by general industrial con- ditions of the country. They are less subject to variations in demand than are manufactures of goods for personal consumption. With a few exceptions, such as jewelry and silverware, the metal industries make articles whose merit depends upon utility and service rather than preference and style. In the metal industries there are numerous links in the manufac- turing chain, so that the products of one stage of manufacture pro- vide the raw material for the next stage ; hence New England manu- facturers find a portion of their market within the region in the other industries as equipment and accessories. Because of the relatively high concentration of numerous lines of metal manufacture in New England the major portion of the market, however, lies outside. It is naturally of principal importance in the more highly industrialized portion of the eastern United States, bounded by the Potomac, Ohio, and Mississippi Rivers. In a surprisingly large number of cases New England metal manu- facturers cater to a nation-wide market. The location of sales and of competition, as indicated by 1,108 manufacturers in the metal in- dustries of New T England, is summarized in the following table, which shows the number of companies reporting business in the different geographical regions. Of the 1,108 replies received, 1,036 reported a portion of their sales in New England, and 502 of these gave New England as a source of competition; 579 concerns reported the major portion of sales as being outside the area, while 418 con- cerns reported the major portion of their sales within New England. As sources of sales and competition the States nearest New England are naturally of greatest importance, the order being the Middle Atlantic, the East North Central, and the South Atlantic States. Next in importance come the Pacific Coast States, which are followed by the other geographic divisions of the West and South. Location of Markets and of Competition as Indicated by New England Metal Manufacturers * Geographic division Firms re- port in^ sales In divisions listed Firms re- porting competi- tion from divisions listed Geographic division Firms re- porting sales in divisions listed Firms re- porting competi- tion from divisions listed gland 1,036 600 386 ISO 170 602 300 247 62 27 East South Central 130 122 110 79 91 33 M Iddle Atlantic West North ('entral 27 ortb ( 'entral West South Central. 23 Soul h Atlanl Ic M own tain 19 Foreign countries 41 i Reported \>y 1,108 flrau In the metal industries of New England. MKTAI, MANUFACTURES 199 FACTORS INFLUENCING LOCATION Regarding the factors which in the minds of manufacturers have been of importance in determining their location in New England, labor ranked first and markets second among 1,135 questionnaire replies that were analyzed. The large numbers of highly skilled New England workmen stand out as a very important asset in the metal industries. Analysis of 631 answers showed the various reasons in the minds of these manufacturers in the following frequency: Labor conditions, 411; accessibility of markets, 369; accessible raw mate- rials (mainly semifabricated products), 272; transportation facil- ities, 201; banking facilities, 192; freight rates, 170. In most cases a combination of reasons was given. In a great many cases personal reasons, such as home and family connections, affection for a par- ticular locality, or the fact that the business had been established there by a predecessor, were given as the determining reasons in the mind of the manufacturer. Availability of local capital was oft cm an important factor. Labor stands first as a factor influencing location in the greater number of separate lines of metal manufacture. With the heavier and less highly fabricated metal industries, location of markets was given as the principal reason for plant location. This includes such enterprises as foundries, structural iron work, sheet metal, and wire work. In several of the machinery lines, particularly textile ma- chinery, the near-by market afforded by other industries was the principal reason for the given location. RAW MATERIALS The materials consumed by New r England metal industries have a considerable variety. The principal items are iron and steel, in stages of partial manufacture ranging from pig iron and blank cast- ings to bar and sheet iron and steel and forgings, also brass, bronze, copper, tin, and other nonferrous metals, as well as precious metals. With a few exceptions, none of the New England metal industries start the manufacturing process as far back as the reduction and refining of metallic ores, although a few blast furnaces for reduction of iron ore existed there during and immediately after the World War. The principal present exception is the recently established blast furnace at Everett, Mass., which turns out pig iron for use by the metal-working industries of New England. In the last analysis these industries depend upon outside sources for their raw materials. But in most instances each industry car- ries through one stage in a series of manufacturing operations wherein all but the first stage uses as raw materials the manufactured product of a preceding stage. The blast furnace referred to, having a cen- tral location as regards distribution of its product throughout New England, with a position on tidewater whereby it may transport all its raw materials by water — limestone from the coast of Maine, iron ores from Newfoundland, Sweden, Cuba, Brazil, or other tide- water sources, and by-product coke from near-by New England .sources — marks an important step in the local production of the basic materials for New England metal industries. 200 INDUSTRIAL, STRUCTURE OF NEW ENGLAND SEASONAL VARIATION Seasonal activity in the metal industries is less marked than in some other lines of New England manufacture. There is little sea- sonal variation in the market and in supplies of raw materials or in other phases of production. Fluctuations in employment follow, in general, the swing of business activity, and particularly that of industrial activity throughout the country. INCENTIVE METHODS OF WAGE PAYMENT The use of incentive methods of wage payment in the metal indus- tries of New England has found in some lines a high degree of devel- opment, while in others it appears to have very little place. Analy- sis shows that certain industries have made outstanding progress in this respect while others are somewhat backward, as is pointed out in the discussion of the individual types of manufacture. Conditions of manufacture are so varied with different types of products that no uniform degree of such employment can be expected to find practical application. TREND OF ACTIVITY The general trend of activity in the New England metal industries has been upward in the last few years. There are a few exceptions where drastic readjustments have taken place. Growth in electrical machinery, in metal-working machinery, and in hardware and tools, was marked during the years following the severe postwar slump — a period when the country was oversupplied with machinery from war- time activity. According to compilations by the Electrical World, based upon monthly consumption of electrical energy by an identical group of large New England manufacturing plants, the metal indus- tries have had a substantial and continuing upward trend since 1925. MARKET FOR PRODUCTS The market for products of New England metal industries in- cludes a wide range of consumers. In the case of industrial equip- ment this market is of three distinct kinds. First is the field pro- vided by demands for new equipment for industrial expansion. In addition, there is a large field for replacements of old equipment, resulting from obsolescence and depreciation. The classification of the market for representative New England metal products, according to the type of consumption and use, would run approximately as follows : Industrial : Machinery. Foundry and machine-shop prod- ucts. Engines and waterwheels. Brass and bronze products. Copper, tin, sheet iron, wirework, etc. Forgings. Steam fittings. Personal: Cutlery. Personal — Continued. Jewelry. Plated ware. Silverware. Clocks and watches. Firearms. General : Hardware and tools. Plumbers' supplies. Typewriters. Sowing machines. Needles, pins, etc. METAL MANUFACTURES 201 Methods for reaching the markets for these products are prevail* ingly through direct dealing with the manufacturing consumer in the case of industrial equipment, and either through wholesale houses or direct to the retailer in the case of goods for personal or general consumption. Because each line of manufacture differs somewhat from the others in its marketing methods, these methods are dis- cussed under each industry. PRINCIPAL CLASSES The most important of the metal industries in New England is the manufacture of machinery and mechanical equipment. This includes as its major items electrical equipment, textile machinery, machine tools, and a variety of special types of machinery. This group of manufactures in 1925 contributed upward of one-fourth (28 per cent) of the revenue derived from all the metal industries. Next in order is the great variety of products included in the foundry and machine-shop group. These contributed 17 per cent of the manufacturing revenue from all the metal industries. The group including hardware, cutlery, and mechanics' tools ranks third in importance, contributing 12.7 per cent of the total. Manu- factures of brass, bronze, and other nonferrous materials are about one-half as important as the hardware group. Jewelry, silverware, and plated ware are of nearly as great im- portance collectively as the brass and bronze manufactures, contribut- ing not quite 6 per cent of the manufacturing income for all the metal industries. Manufactures of automotive equipment, motor cycles, bicycles, and parts together represent 3.7 per cent of the total income for metals. These five classes make up the outstanding metal manufactures of New England and together comprise about 70 per cent of the reported total manufacturing income from all the metal industries. Besides the lines enumerated, there are a number of others which make up a substantial group, constituting more than one-fourth of the total. In these the principal items are firearms, clocks, and watches, a variety of iron and steel products, besides steel shipbuilding and railroad- repair shops and equipment. MACHINERY GROUP ELECTRICAL1MACHINERY AND APPLIANCES The electrical-equipment industries of the United States are largely concentrated in six States, ranking as follows: New York, Illinois, Pennsylvania, Ohio, New Jersey, and Massachusetts. These six States in 1925 produced more than three-fourths of the total output for the country. In that year New England production was 15.6 per cent of the national total, while the Middle Atlantic States pro- duced 41 per cent and the East North Central States 37.5 per cent. These three groups of States thus accounted for over 94 per cent of the output of the country. In this branch of machinery manufacture are included establish- ments which are engaged in the making of machinery, apparatus, and supplies for use in the generation, transmission, and utilization of 202 INDUSTRIAL STRUCTURE OF NEW ENGLAND LOCATION OF ESTABLISHMENTS MAKING ELECTRICAL MACHINERY AND APPLIANCES NEW ENGLAND STATES 1927 D0T5AND FIGURES SHOW NUMBER IN EACH COUNTY />' cA> <-£) O P4406 *€ Figrure 33 Metal manufactures 203 electric power. The industry thus includes a very considerable variety of products, such as generators, transformers, control appa- ratus, electric motors, batteries, electric lamps, radio apparatus, switchboards, insulated wire, signal apparatus, searchlights, electri- cal appliances, and various other devices used in the electrical industries. PIA.CE IN METAL-USING GROUP The manufacture of electrical machinery and appliances is the leading metal industry of New England, representing about 15 per cent of the total value of products in the group of metals and related industries, and more than 1G per cent of the income derived from all the metal manufactures. The electrical equipment indus- tries ranked third among all manufacturing industries of New Eng- land in their output in 1925, representing about 4 per cent of the value of all manufactured products of the area and 5.2 per cent of the revenue. The electrical industries of New England in 1927 employed a little less than 41,000 wage earners and paid upward of $53,000,000 in wages. The average wages per wage earner in 1925 were $1,321, in comparison with the average of $1,241 in 1923 and of $589 in 1914. In comparison with other regions, however, average wages in this industry in 1925 were less in New England than for the country as a whole, the figures being $1,321 and $1,350, respectively. The electrical industries in 1927 contributed to the income of the people of New England, as shown by the value added by manufac- ture, approximately $144,600,000, and their products had a gross value of $229,516,000. A relatively high contribution by the manu- facturing processes is indicated for New England in the ratio shown by value added by manufacture to value of gross output ; in 1925 the value added by manufacture was 70 per cent in New England, com- pared with 58 per cent in the Middle Atlantic States and 57 per cent in the East North Central States. The average value of product per wage earner in New England was $5,835, compared with $6,540 for the rest of the United States. This industry shows a considerable reduction in the 2-year interval 1925 to 1927. In Rhode Island there was an increase in output and in manufacturing income amounting to about $1,000,000. The other producing States, however, show a decline. IMPORTANCE IN" SEPARATE STATES The importance of electrical manufacturing industries in the States of New England in 1927, and the trend of growth, as indicated by figures for 1904, 1914, and 1925, are shown in the following table. Massachusetts is the leading State in New England, with 61 per cent of the output of the region and two-thirds of the regional income from this type of manufacturing, and is followed in turn by Con- necticut, Rhode Island, New Hampshire, and Maine. (See fig. 33.) 204 INDUSTRIAL STIIUCTUKE OF NEW ENGLAND Manufacture of Electrical Machinery, Apparatus, and Supplies in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 122 116 70 65 14 15 6 8 24,759 25, 065 14,500 14, 171 1,431 1,302 253 640 33, 904 35, 109 16, 999 17, 074 1,914 1,699 226 528 42, 198 43, 794 34, 799 34, 246 7,572 7,624 353 1,158 139, 349 147, 057 75, 926 78, 366 13, 355 12, 432 887 2,414 97, 151 1925 103, 263 41, 127 Connecticut: 1927 1925 44, 120 5,783 4,807 534 Rhode Island: 1927 1925 New Hampshire: 1927 1925 1,256 Total: 1927 -.. 212 204 153 120 1,777 1,739 11.7 40, 943 41, 178 23, 993 11, 997 241, 566 239, 921 17.2 53,043 54, 411 14, 136 6,317 336, 239 323, 835 16.8 84, 922 86, 822 29, 091 14,184 645, 762 636, 692 13.6 229/516 240, 269 64, 019 26, 407 1, 637, 307 1, 540, 002 15.6 144, 595 153, 446 34, 928 12, 224 991, 545 903, 310 17.0 1925 > .-. 1914 2.. _ 1904 _ United States total: 1927 1925. .._ New England as per cent of United States: 1925 i Not including 1 establishment in Maine. » Not including 1 establishment in Vermont. GROWTH IN RECENT YEARS This industry has had a very rapid growth in the last 25 years, in which New England has experienced a fair share of the national increase. The value of products of the electrical industries increased ninefold from 1904 to 1925 in the country as a whole, and it increased in New England in the same period more than eight times. The 1925 output in New England was 275 per cent greater than in 1914 and 57 per cent more than in 1919. Establishments in New England as a whole averaged considerably larger in number of w 7 age earners than for the rest of the country, the average being more than 200 wage earners per establishment in New England, in comparison with 129 wage earners for the rest of the United States. This is a reversal of the situation in 1904, when New England establishments employed an average of 100 wage earners, while in the rest of the United States the average was approximately 194 per establishment. The greater average size of establishments in New England is indicated by an average output of $1,177,788 per plant, in comparison with $840,732 for the rest of the United States. This is accounted for in part by the presence of several very large concerns. EXPERIENCES OF MANUFACTURERS In response to a special inquiry regarding their manufacturing ana marketing experience, replies were received from 49 New Eng- land companies in this Line, representing about one-fourth of the total number reported by the census. METAL MANUFACTURES 205 She and age of establishments. — For these 49 establishments the average period of operation was 20 years. About one-third of the ij umber had been established within the last 10 years. With a few exceptions they had been engaged in the manufacture of electrical equipment throughout their entire existence. These exceptions in- cluded plants which had previously made automobiles, jewelry, arms, ammunition, and silk goods. Branch plants were reported by 6 com- panies, 2 of the branches being located in England and 1 in Ger- many. Several of the reporting establishments are branches of large companies whose headquarters are outside New England. About one-third of the reporting companies had made additions to their plant equipment since 1921, with increases ranging from 5 per cent up to several times their original capacity. The average output of 40 firms reporting their activity for 1925 was a little over 75 per cent of maximum capacity. Manufacturing practices. — Methods of payment by piecework or other incentive practices were indicated by two-fifths of these re- porting companies, with a variation in the proportion of workers employed under such a plan of from 20 to 100 per cent in individual cases. Moderate seasonal fluctuation was indicated in this industry by the figures of total numbers of workers on pay rolls at different quarterly periods, there being less than 10 per cent variation in the total number of wage earners employed by these reporting com- panies at different periods. Several plants reported the filling in of slack periods by the manufacture of radio apparatus or by making regular products for stock. Makers of lamps, in particular, re- ported the manufacture of goods for stock in the summer months, when they experience a lull in regular orders. Sales and marketing. — Reports from these companies indicate that the general trend of combined sales has been decidedly upward since 1921, with a large increase each year. Increased sales were attrib- uted, in individual cases, to demands for new products, to new sales methods, to the extension of territory, and to lowered production costs. About one-seventh of the companies replying indicated a downward trend in total sales during the last few years, the chief reason for such decreases being given as a change in the nature of demand for their products. An increase of sales m the New England market was indicated by more than four-fifths of the reporting companies. These increased regional sales w T ere attributed to improved quality of product, to the growth of building activity, and to greater sales effort. One manu- facturer reported an increase of 200 per cent in New England sales as a result of special sales efforts. A few concerns whose sales in New England have been decreasing attribute the change to the mov- ing of factories to the West, to the transfer of their sales activity to other industrial centers, and to the decline in street railways. The majority of sales, as reported by these 47 companies, were made outside New England. Sales in "the Middle Atlantic States were reported by 33 concerns ; in the East North Central States by 26; and in the South Atlantic States by 12; while a number of companies reported a nation-wide market. Eight concerrts reported that the majority of their sales were made within New England. On the basis of aggregate sales reported by 34 companies, a little 206 INDUSTRIAL STRUCTURE OF NEW ENGLAND less than 20 per cent of the total sales in 1925 were made within Xew England. Competition from within New England was indi- cated by about half the reporting companies, while 19 companies reported competition from the Middle Atlantic States and 11 others from the East North Central States. Brands, trade-marks, and advertising. — The use of a brand or trade-mark on products is the prevailing practice of this industry. Two-thirds of the companies replying stated that their entire out- put bears an identification mark. The use of advertising was re- ported by over four-fifths of the reporting companies, most of which rely upon national advertising mediums in which trade journals are most common. Direct mail, dealer helps, and magazines are used to a considerable extent. Expenditures for advertising by the reporting companies represented 2 per cent of their aggregate sales in 1925, and the ratio of selling costs, exclusive of advertising, to the total value of the product in the same year was 12.7 per cent. Distribution channels. — The principal channels through which electrical products are distributed are wholesale firms and direct sales to the consumers of the goods, the latter being manufacturers who use this equipment in making their product. Sales agents were reported in a lesser number of cases. Several concerns also made sales direct to retailers, while two companies had exclusive dis- tributors, and one made sales direct by mail. TEXTILE MACHINERY AND EQUIPMENT The textile-machinery industry is closely related to the industries which manufacture textile products; its fortunes therefore depend largely upon conditions existing in textile manufacture. Textile machinery includes mechanical equipment for all stages of textile manufacture, such as the machinery for preparing raw fibers and for the preparation of yarn for weaving and knitting ; looms and knit- ting machinery ; machinery for bleaching, dyeing, printing, mercer- izing, and finishing; and other miscellaneous machinery, attachments, and parts used in textile manufacture. The country's manufacture of textile machinery and mechanical equipment for use in textile manufacture is largely centered in New England, nearly two-thirds of the national output being produced in this region. The obvious reason for this high concentration is the nearness of market in textile-manufacturing establishments. In fact, the industry, having had its early start in departments of tex- tile mills and in plants established adjacent to them, is one of long standing in New England. Of 68 companies which reported their period of operation, 52 had been in business for more than 25 years; of this number 31 had been in operation more than 50 years, and 15 of these more than 75 years, including 4 concerns established for more than a century. Of the entire number 16 companies had come into existence within 25 years, and 6 of these within the last 10 years. More than half of the reporting companies were under their original management. Of the 68 concerns 4 indicated branch plants, all located witfain New England, and all but one had been established previous to 1924. The States of Massachusetts and Rhode Island represent about four-iifth- of this industry in New England ? and Massachusetts con- METAL MANUFACTURES 207 tributes about two-thirds of the total. New Hampshire is also of considerable importance, and there are establishments of substantial size in Connecticut and in Maine. (See fig. 34.) This industry in L927 contributed not far from $53,500,000 to the revenue of New England, as shown by the value added by manufac- TEXTILE MACHINERY 8c PARTS NEW ENGLAND STATES 1927 DOT5 SHOW NUMQE.R IN EACH COUNTY <^> Q^> Figure 34 turing; and its product had a gross value of more than $75,500,000. There were 186 establishments engaged in making textile ^machinery and equipment, which gave employment to upward of 17,000 wage earners and provided a pay roll exceeding $23,000,000. The industry provided a New England market for materials, including fuel, power, and supplies, exceeding $22,000,000. 208 INDUSTRIAL STKUCTUIlK OF XKW KX(JLAXI) Comparison of the census figures for 1927 with those for 1925 shows for all New England, exclusive of Maine, a reduction of $2,916,000 in the gross value of the product. The falling off in the net manufacturing revenue, however, was relatively slight, amount- ing to only $290,000. The number of establishments was reduced from 193 to 186, and the number of wage earners fell off from 19,014 to 17,141 — a loss of 1,873 workers. In total wages paid there was a reduction of $1,711,000. The falling off in activity was con- fined to the two principal producing States — Massachusetts and Khode Island ; there was an increase in New Hampshire, Connecticut, and Vermont. Census figures for the individual States are given for 1927 and 1925 in the following table. No comparable informa- tion is available for earlier years because this industry was not seg- regated from other branches of machinery manufacture previous to 1925. Manufacture of Textile Machinery and Parts in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 119 123 41 47 9 8 13 12 4 3 12,009 13, 687 3,425 3,781 1,053 912 452 420 202 214 16,242 17, 769 4,766 5,005 1,370 1,284 527 546 273 285 15,008 16, 584 4,497 5,752 1,692 1,593 745 612 193 214 46, 866 51, 411 15,390 17, 508 7,324 6,934 2,328 1,973 678 675 31, 858 34, 827 10, 893 11, 757 1925 Rhode Island: 1927 1925 New Hampshire: 1927 5,632 5,341 1,583 1925... _.. Connecticut: 1927 1925... ._. 1,361 485 Vermont: 1927 1925 462 Total: 1927» 186 193 367 379 50.9 17, 141 19, 014 26, 154 27, 869 68.2 23, 178 24, 889 36, 481 37, 464 66.4 22, 135 24, 755 36, 181 39, 037 63.4 75, 586 78, 502 116, 921 121, 653 64.5 53, 451 1925 1 53, 747 United States total: 1927 80,740 1925 82, 616 New England as per cent of United States: 1925... . 65.1 1 Not including 3 establishments in Maine. experiences of manufacturers In reply to a special inquiry information regarding volume of ^ale.s, employment, and marketing practices was submitted by 58 companies, with an aggregate employment in 1925 of 5,756 wage earners, thus representing more than one-fourth of the whole indus- try. Thirty-two of these concerns report an average employment of less than 25 persons each, and 19 of this number employed less than 10 wage earners each. There were V6 concerns employing between 25 and 100 workers, and 8 employed between 100 ana 250. There METAL MANUFACTURES 209 were 5 other concerns each employing 250 workers or more, whose aggregate employment represented 62 per cent of the total reported number of w r age earners. One concern had a pay roll exceeding 2,000 workers. As to volume of individual sales, there were 21 companies whose individual business in 1925 was less than $50,000; 13 concerns with annual sales between $50,000 and $100,000 ; 7 between $100,000 and $250,000; 7 others between $250,000 and $500,000; 6 between $500,000 and $1,000,000; and 3 with individual sales exceeding $1,000,000. Plcfrit practices. — About one-third of these companies reported the use of some form of incentive method of wage payment for their factory workers, while two-thirds of the number stated that they did not employ any such method. The largest employer in the group paid 70 per cent of its workers on an incentive basis, and the average proportion of factory workers reported by all the companies was slightly over 60 per cent. Reports from these companies do not indi- cate any pronounced seasonal variation in employment, but it fluc- tuates w r ith conditions in the textile industries. A number of manu- facturers reported special efforts to maintain steady employment throughout the year by the development of supplementary products, aimed to reach a wider market. A few reported repair work as a means of keeping employment uniform; the majority, however, did not indicate any form of supplementary employment. Twenty-four of the concerns indicated the manufacture of a single type of product, while 18 others reported diversified production or the addition of secondary products. Ratio of production. — The ratio of production in 1925, as indicated by reports of 48 companies, was 53.3 per cent of maximum plant capacity. Twenty-one of these establishments reported operations at 75 to 100 per cent of the maximum, and 25 concerns between 50 and 75 per cent. Additions to plant capacity since 1921 were reported by 11 concerns, the increase ranging from 10 to 100 per cent; 3 concerns reported a doubling of capacity; and 3 others in- creased more than one-half. Of 10 concerns whose sales in 1925 showed an increase over those for 1923, 6 were operating at 75 per cent, or upward, of full capacity ; and of 10 concerns whose sales showed a decrease in 1924 and 1925, 5 reported operations of 50 to 75 per cent of capacity, and 5 at less than half capacity. One of the plants, whose capacity had been increased by 100 per cent, reported a continuous decrease in sales since 1921. Sales 00 ° Total United States 16,210,000 Paper-mill and pulp-mill machinery: Massachusetts 5, 541, 000 Tdtal United States 21,209,000 Printing presses : Connecticut 3, 226, 000 Total United States 69,217,000 Meters, gas and water : Connecticut j o 886 000 Massachusetts J Total United States 24,502,000 Woodworking machinery : Massachusetts 2, 560, 000 Total - 39, 620, 000 Packaging machines: Connecticut ] Massachusetts [ 2, 051, 000 New Hampshire J Total United States 4,387,000 Confectionery and ice-cream machinery: Massachusetts 1, 619, 000 Total United States 5, 143, 000 Leather-working machinery, other than shoe machinery: Massachusetts 1. 557, ,000 Total United States 2,222,000 Laundry machinery: Massachusetts 998,000 Total United States 24,198,000 218 INDUSTRIAL STRUCTURE OF STEW ENGLAND Cars and trucks, industrial : Massachusetts $906, 000 Total United States 24,267,000 Stone-working machinery : Vermont 689, 000 Total United States 1,736,000 Elevators and elevator machinery: Massachusetts 680,000 Total United States 47, 430, 000 Transmission machinery : Massachusetts 619,000 Total United States 15,350,000 Hat-making machinery: Connecticut 307,000 Total United States 522, 000 EXPERIENCES OF MANUFACTURERS One hundred and forty-four companies in Massachusetts, Connecti- cut, and Rhode Island submitted replies to questionnaires cover- ing their experience in making and marketing these various types of machinery. The broad range of products covered in these replies is shown by the following summary of types reported: Paper- mill and pulp-mill machinery, 17 companies ; power-transmission ma- chinery, 17 ; woodworking machinery, 16 ; shoe machinery, 9 ; elevator and conveying machinery, 8 ; rubber-working machinery, 7 ; printing- press machinery, 5 ; stapling machinery, 5 ; paper-box machinery, ele- vator machinery, addressing and mailing machinery, baking machin- ery and equipment, hat-making machinery, 4 companies each ; laun- dry machinery, leather-working machinery, confectionery and ice- cream machinery, 3 companies each; refrigeration and ice-making machinery, packing machinery, chemical-plant machinery, marking machinery, blowers and fans, envelope machinery, bookbinding ma- chinery, stone-working machinery, 2 companies each. In addition to these, the following were represented by one com- pany each: Celluloid-working machinery; crushing, grinding* and separating machinery; cooling and conditioning machinery; bottling machinery; oil-mill machinery; cranberry-picking machinery; auto- matic-wrapping machinery; hydraulic machinery; sugar-mill ma- chinery; glass-cutting machinery; grain-handling machinery; agri- cultural machinery ; road-making machinery ; snow-removing equip- ment; brake-lining machinery; mechanical-tube cleaners; vacuum cleaners; lawn mowers; scales and balances. Approximately one- half of the reporting concerns indicated the manufacture of a single type of machine, while one-half made multiple or supplementary products in addition to the specified main product. Age and size of establishments. — About half of these companies had originated within the last 25 years; 43 had been in operation in New England 1 x 'tween 25 and 50 years; 28 over 50 years, and 12 of these from 75 years to nearly a century. Almost half of the 137 con- cerns which stated the period of present management indicated some change within the last 10 years. As indicated by reports from 105 concerns which stated their sales volume, there were 47 with annua] sales of less than $50,000 and 16 with sales between $50,000 and $100,000. Business between $100,000 and $250,000 was reported by 28 concerns, and a volume between $250,000 and $500,000 by 17 others. There were also 8 companies METAL MANUFACTURES 219 whose individual sales were between $500,000 and $1,000,000 and 5 with annual sales exceeding $1,000,000 each. The largest individual sales volume reported by a company was nearly $4,000,000. All but one of the companies whose sales exceeded $1,000,000 in 1925 had been in operation more than 70 years. Six of the companies reported branch factories. One company making conveying machinery re- ported a branch plant in Ohio. A Connecticut concern making a variety of heavy machinery has a branch plant in eastern New York. A Vermont manufacturer of stone-working machinery reported a branch in New York. The other reported branches were located in New England. The total pay roll reported by 121 concerns was 5,433 wage earners. Seventy of the companies had an average of employees of less than 25 persons each; 21 had between 25 and 50 workers, 20 between 50 and 100, and 10 companies employed more than 100 workers each, of which 3 had a pay roll exceeding 250 workers each. The largest company employed nearly 700 wage earners. Of the 121 reporting companies, more than three-fourths had an individual pay roll of less than 50 wage earners. Raw materials. — The principal raw materials reported by this group of machinery manufacturers are steel, iron, and the nonf errous metals. One hundred and thirty companies reported the purchase of steel in its raw and semif abricatecl forms ; 127 firms reported pur- chases of cast iron, pig iron, and castings ; and 93 concerns reported the purchase of brass, bronze, copper, and other non ferrous metals in the raw or semif abricated forms. The majority of the concerns indicated that they purchase these supplies outside New England. Plant capacity. — Increases in plant capacity since 1921 were indi- cated by 29 of the 144 concerns, the increases ranging from small amounts up to a trebling of capacity. Increases were more frequent in plants turning out a variety of products than with those making a single product. Most of the increases were in small concerns. Out- put in 1925, as shown by the figures of 97 concerns, averaged 70 per cent of their maximum capacity in that year. Forty-three of these latter companies were run at upw r ard of 75 per cent, and 36 stated that their operations were from 50 to 75 per cent of full capacity; while 18 concerns reported operations at less than half of maximum capacity. Manufacturing practices. — The use of incentive methods of wage payment does not prevail to any great extent in this form of manu- facturing. Of 120 companies indicating their practices in this regard, 96 stated that no incentive methods were used. The average for 16 concerns giving figures for proportion of wage earners paid by incen- tive methods was 37 per cent of their total pay roll. Six of these companies stated that more than 50 per cent of their employees were paid in this manner. This included two large companies which re- ported 60 and 80 per cent, respectively. Sales and marketing. — Aggregate sales of 112 concerns submitting annual sales figures for 1923, 1924, and 1925 showed a net increase in 1925 of 3.1 per cent over 1923 and of 11 per cent over 1924. Appar- ently no single factor accounted for individual contrasts in sales trends in these years. Increases in sales were attributed by individ- ual companies to improvements and new models, to better services 220 INDUSTRIAL, STRUCTURE OF NEW ENGLAND to customers, and to increased sales efforts and advertising. De- creases in individual cases were attributed to depression in certain major New England industries, to changes in types of machines used, to new purchasing policies of customers, to competition, and to freight rates. Location, of markets. — The New England market is decidedly of secondary importance in this reporting group of manufacturers. With the 102 concerns whose aggregate sales were nearly $23,000,000, less than 25 per cent of the total sales were made within New Eng- land. The order of importance of different sections of the United States as a market was indicated to be as follows : Middle Atlantic States, East North Central, South Atlantic, and East South Central States, and the States on the Pacific coast. The sources of competi- tion mentioned most frequently were the East North Central States and the Middle Atlantic States. Several concerns stated that their sharpest competition came from within New England. Nearly half of these companies reported that they had some export business, the percentages ranging, in individual cases, from 1 up to 55 per cent of total sales. The majority of these concerns stated that their exports were less than 10 per cent ; but seven of them reported exports of 25 per cent or more. For 58 companies (whose aggregate sales exceeded $19,000,000) which gave figures on exports, the amount exported represented 9.6 per cent of the total sales. Distribution methods. — On the basis of these replies of repre- sentative machinery manufacturers, the most common method of distribution is by direct sales to the consumer of the machinery. Out of 136 reports there were 103 concerns which indicated this channel. A small number reported exclusive distributors and a few have their own sales offices. Brands and tra$e-marks. — The majority of the reporting com- panies reported the use of an identifying brand or trade-mark. Of 81 concerns indicating this practice, there were 61 whose entire prod- uct was specifically marked and 13 others which reported that half or more of their products were thus identified. On the other hand, there were 14 companies reporting that none of their product was so identified, while the others did not indicate their practice in this respect. Advertising. — Of 105 concerns replying there were 67 which adver- tised through national mediums and 21 through local mediums, while 8 used both forms and 9 reported no advertising of any kind. Most of the concerns reporting these advertising mediums were selling their products direct to the consumer. The principal mediums, as in other mechanical lines, were trade journals and direct mail. Changes and improvements. — The changes and improvements in- dicated by these machinery manufacturers are mainly changes in production and selling practices. Many of the companies reported that they have effected savings through the standardization of prod- ucts and materials. Cutting down the costs of production through reforms in internal management and through the use of cost-account- ing systems was indicated in several instances. The reports indi- cated that, in general, manufacturers in this industry are finding it necessary to change their products materially in order to meet new demands and keep up will) progress in this field. Several concerns METAI, MANUFA(TI'i;KS 221 reported advance in making their products more widely known. Education of possible purchasers to the advantages and use of labor- saving machinery is the line of effort stressed in another instance. One firm states that it is continually investigating the possibility for developing products to keep employment and production regular throughout the year. By using up-to-date tools or tools of special types a small manufacturer reports success in meeting the competition of larger concerns. On the other hand, one manufacturer states that the placing on the market of second-hand machines (which were used during the war when quantity production was necessary) at prices much below those for new machines, has had a harmful effect upon the selling of new products. Another manufacturer of machinery states that most of the new factory expansion is in the more centrally located regions of the country, and that a lack of industrial construction and expan- sion in New England retards the market for mechanical equipment there. A maker of paper-mill and pulp-mill machinery states that since the decrease of materials for paper making in New England, the paper mills are locating in other sections nearer the sources of supply. A manufacturer of leather-w T orking machinery states that many concerns in this line have started up in Pennsylvania, New York, and New Jersey, and that these are supplying the market formerly supplied by New England manufacturers. Another maker of a simi- lar line states that the machinery is now made to a great extent in plants of former customers. A manufacturer of woodworking ma- chinery says his market is affected by slack periods in the textile industry, because his customers in turn manufacture supplies for the textile mills. A maker of ventilating fans, whose market is with the textile and leather trades, finds that the slackness in these indus- tries has affected their purchases of supplies. One envelope-ma- chinery company complains of foreign competition. FOUNDRY AND MACHINE-SHOP PRODUCTS This group of New England manufactures is a very broad one embracing the lines which employ foundry and machine-shop processes that are not clearly segregated. The foundry, as ordi- narily defined, is an establishment which casts metals in various shapes, while the machine shop uses power-driven tools for cutting and shaping metals. Many of these establishments make a great variety of products, and thus there is considerable overlapping be- tween the present classification and other specific lines. The industry discussed here includes many foundries making castings of steel, malleable iron, or gray iron, and machine shops whose principal products are machinery and repair work not covered in other classi- fications. Foundries which are operated in conjunction with machine shops are included in this section, but independent foundries making castings for sale are treated separately. This industry caters largely to local trade, and thus depends prin- cipally upon a local market. On account of the variety of products there is an extensive and varied market outlet. Nominally the job- bing foundry has a local market because the service requirements of its trade demand close touch between foundry and consumer. 222 INDUSTRIAL STRUCTURE OF NEW ENGLAND The machine shops are not so dependent on local trade, particularly those making specialty products. Foundries and machine shops are well distributed throughout New England, and they are of considerable importance in each State, ^\^^fe)^> FOUNDRY* MACHINE SHOP PRODUCTS NEW ENGLAND STATES 1927 DOTS AND F10UR£S SHOW NUMBER /N £ACH COUNTr <£±> Q^) (p0+4Z3-4t) Figure ! although the principal volume is naturally found in the regions where mills and factories abound, since these provide much of the market. As a source of revenue the industry is of approximately equal importance in Connecticut aitd Massachusetts, the contribution in L927 exceeding $60,000,000 m each Shite. It is likewise of ap- METAL MANUFACTURES 223 proximately equal importance in New Hampshire and Rhode Island, producing an income exceeding $6,000,000 in each case. In Maine and Vermont the manufacturing income from this source was in the neighborhood of $2,000,000 for each State. The total addition to the New England income from this type of manufacture in 1927 exceeded $142,000,000, and the output had a gross value of nearly $208,000,000. It gave employment to more than 42,500 wage earners, who were paid in wages $62,693,000. > Of the 814 establishments in New England there are almost 500 in the State of Massachusetts. The figures of activity in this line of New England manufacture for 1927 show a substantial increase over 1925. Although the num- ber of establishments fell off from 830 to 814, there was an increase of 366 in the average number of wage earners employed, and an increase of $1,724,000 in total wages. The gross value of the product in this 2-year interval shows an increase of $8,808,000 and the net New England income from manufacture increased more than $9,000,000, accompanied by a slight reduction in the total cost of materials. Each of the six States shows a substantial increase in the gross value of its product, and each State except Rhode Island shows considerable increase in net income. In the following table are presented the census figures for the individual States in 1927 and 1925, together with the corresponding New England totals for 1914 and 1904. Manufacture of Foundry and Machine-Shop Products in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 __ 496 500 175 184 47 49 41 40 31 33 24 24 19, 898 19, 541 16, 799 16, 980 2.184 2^154 1,885 1,788 1,048 968 704 721 30, 059 28, 920 24, 206 24, 214 3,290 3,079 2,692 2,574 1,364 1,206 1,081 976 30, 760 31,046 25, 327 26, 665 4,296 3,966 2,717 2,435 1,520 1,027 1,012 1,066 94, 150 90, 638 86, 168 83, 722 10, 463 10, 201 9,778 8,618 4,272 3,089 3,119 2,875 63, 390 1925 59, 592 Connecticut: 1927.... 60, 841 1925 57, 057 Rhode Island: 1927 6,167 1925 6,235 New Hampshire: 1927. 7,061 1925 6,183 Maine: 1927 2,752 1925 2,062 Vermont: 1927 2,107 1925.. 1,809 Total: 1927 814 830 1,274 1,264 8,318 8,154 10.2 42, 518 42, 152 62, 508 58, 892 397,814 397, 838 10.6 62, 692 60, 969 41, 395 33, 417 591,065 570, 801 10.7 65, 632 66, 205 43, 623 35, 959 872, 790 883, 708 7.5 207, 950 199, 143 120, 283 99, 827 2, 259, 794 2, 232, 986 8.9 142, 318 1925 132, 938 1914 76, 660 1904 63, 868 United States total: 1927.... 1,387,004 1925 1, 349, 278 New England as per cent of United States: 1925 9.9 224 INDUSTRIAL STRUCTURE OF NEW ENGLAND EXPERIENCES OF MANUFACTURERS Special replies regarding operating practices were obtained from 136 establishments turning out various types of foundry and ma- chine-shop products. All States are represented in these replies, although most were from Massachusetts and Connecticut. Most of these companies indicated the manufacture of multiple or supple- mentary articles in addition to a specified main product, and several turned out a great variety of articles. Size and age of establishments. — Small and middle-sized estab- lishments predominate in this group, although there were a number of large concerns. In the total of 112 companies which indicated sales volume in 1925, there were 33 with individual sales of less than $50,000; 24 with sales between $50,000 and $100,000; 21 between $100,000 and $250,000; and 13 between $250,000 and $500,000. In addition to these concerns there were 7 companies with an annual value between $500,000 and $1,000,000 each, and 14 exceeding $1,000,- 000 in individual sales. The aggregate volume of these 14 largest concerns represents approximately 70 per cent of the total sales of the 112 companies. Most of these large individual concerns had been in operation upward of 50 years. The largest one did an annual business approaching $10,000,000'. In terms of workmen employed, the total for the 112 companies was 10,713 wage earners. Over half of these companies employed less than 25 workmen each, and a quarter of them from 25 to 100 workers each. There were 11 concerns employing more than 250 workers, whose aggregate represented 63 per cent of the total for the whole reporting group. One establishment had a pay roll of more than 1,000, but over two-thirds of the establishments had an average pay roll of less than 50 wage earners. Branch plants, located in different parts of the country, were re- ported by 10 of these companies. A maker of automatic sprinkler systems has a branch in the Middle West, and a concern making chilled-iron car wheels has branch plants in several Western States, while a concern making cast-iron brake shoes has branches in several parts of the country. A manufacturer of paper and pulp mill equip- ment reports a branch plant in Quebec. Raw materials. — The chief raw materials reported by this group of manufacturers are steel, iron, and nonferrous metals. Seventy- five concerns reported the purchase of raw or semifabricated steel, and 63 the purchase of cast or pig iron, while 41 reported purchases of semimanufactured iron in the form of castings, sheets, pipe, etc. Fifty-seven companies reported purchases of brass, bronze, or cop- per, while other nonferrous metals or alloys were mentioned in 36 cases. The majority of these companies stated that orders for the purchase of their raw materials were placed with New England con- cerns or with New England agents. Sales ctnd mwrkets. — The trend of sales in this line from 1921 to 1925, as indicated by figures of aggregate sales of 105 concerns, showed in 1925 an increase of 4.4 per cent over 1924, but a decrease of 4.9 per cent compared with 1923. The industry thus showed its highest activity in 1923, which was not quite reached by that of 1925. Numerous individual concerns showed substantial increase in volume METAL MANUFACTUKKS 225 of sales in this period, but a considerable number showed decreases. Reasons given for increased sales volume were the development of new products (36 firms), new sales methods (34 firms), extension of sales territories (30 firms), and lowered manufactured costs (21 firms). Other concerns attributed increased sales to lower overhead costs, increased demand, more advertising, and quality of goods. Decreased volume of business was attributed generally to changes in nature of demand, to competition with other sections, to general overproduction, and to high cost of labor and materials. Utilization of plant capacity. — The utilization of plant capacity as indicated by reports from 93 companies in 1925 was 72.5 per cent of the maximum possible output. Slightly more than half of these companies were running at 75 per cent, or upward, of full capacity and only five establishments reported operating at less than half capacity. Increases in plant capacities since 1921 were reported in several instances. Seven concerns reported a doubling of capacity and one other an even greater increase. Several others reported increases from 25 to 50 per cent. Three companies reported a reduc- tion of plant capacity. Location of markets. — Sales figures from 97 firms, with an aggre- gate volume in 1925 of $39,550,000, indicate that about 35 per cent of their aggregate sales were made within New England. Of the total number of 112 companies indicating the locality of their market, 64 stated that more than half of their sales were made within New England, while the rest indicated less than half in that section. Markets outside New England, according to the frequency with which they were mentioned, were in the Middle Atlantic, the East North Central, the South Atlantic, the South Central, and the Pacific Coast States. The sources of competition mentioned most often were the Middle Atlantic and the East North Central States. Many of the companies find their principal sources of competition within New England. Foreign sales were indicated by 53 concerns, and 42 of these gave the foreign sales in terms of percentage of their total business. There was a wide range — from less than 1 per cent in a small concern up to 70 per cent in a concern doing a million-dollar business. For these 42 companies whose aggregate sales in 1925 exceeded $33,000,000 the total reported exports amounted to 12 per cent. With 31 of the com- panies indicating foreign sales, exports amounted to less than 10 per cent, and with 19 of these they were less than 5 per cent of the total business. There were 4 other concerns which reported exports of more than 25 per cent of their total sales, and 3 of these reported more than 50 per cent. Distribution methods. — Since the local market is an important out- let in this line of manufacture, it is to be expected that distribution of the product would be made largely by the manufacturer direct to the trade, with secondary dependence upon wholesale distributors or sales representatives. The method of distribution varies to a considerable extent with the nature of the product. Trade-marks and advertising. — About two-thirds of the firms re- ported that they used an identification brand or trade-mark in mar- keting all or a portion of their output. Only five firms stated that they did not use any trade-mark on their products. Almost all the 226 INDUSTRIAL STRUCTURE OF NEW ENGLAND reporting companies made use of some form of advertising, only 11 out of the 136 companies definitely indicating that they did not advertise. Trade journals are the' principal advertising medium, but direct mail is used almost as frequently. Personal calls and direct soliciting by telephone are frequently mentioned. One manu- facturer of automatic sprinklers found it unnecessary because he relies upon insurance brokers to recommend his product. Changes and improvements. — Efforts to effect improvements in various sorts of manufacturing activities were indicated by many manufacturers. These improvements follow, in general, those in- dicated in other lines of mechanical manufacture, with particular attention to accident prevention, the provision of various safeguards, improvement of working conditions, standardization of products, and provision for continuous plant maintenance. A manufacturer of regulators and valves reports that by standardi- zation of products he has increased production without increased number of employees. Another concern reports that slack periods have been reduced and output has been kept more uniform by the installation of a cost- accounting system, whereby a careful checking is possible on labor, materials, and stocks of castings in anticipation of needs. In this industry, as in numerous others, the importance of developing better methods of selling is recognized by the attention which a majority of the concerns are giving to these problems. In this type of manufacture seasonal periods are the result mainly of general business conditions or* of slack periods in certain major industries on which the market for products of this industry depends, rather than of inherent seasonal demands for foundry and machine- shop products. Some companies have added supplementary products to tide them over otherwise slack periods. One manufacturer, whose former market was the textile indus- try, has adapted his equipment to make products used by other industries. The replies indicate a considerable amount of transition in this industry to new or modified types of products. The automo- bile has provided a new demand for certain lines of equipment and accessories. A company making engines attributes decreased sales to the increased use of electrical equipment operated from central power stations. A change in the type of prime mover has thus curtailed the amount of possible business. Purchased power and central heating plants are said by a manufacturer of steam regula- tors and other steam specialties to have decreased the market for these articles. A manufacturer of leather-working machinery finds his sales affected by changes in the market for leather manufactures, while a maker of tanning machinery reports decreased demand for his product resulting from the use of fabric and rubber as substitutes for leather. A company making supplies for street railways attrib- utes decreased sales to recent changes in modes of transportation. INDEPENDENT FOUNDRIES Aside from the foundries connected with machine-shop activities that arc included in the foregoing discussion there is a considerable number of separate foundries making castings for sale. The great- est number of these are makers of gray-iron castings; a lesser number METAL \l w CJFACTUBES 227 make steel castings, and some make castings of brass, bronze, and other metals, as well as iron and steel products. Sixty-four foundries turning out castings as their sole or main product gave information regarding their manufacturing activities. Of these, 41 were classified as iron foundries, 5 as steel foundries, and 18 made castings of brass, bronze, and other metals, in addition to iron. The greater part of this foundry activity is concentrated in Massachusetts and Connecticut, but the returns include also plants in Maine, New Hampshire, Rhode Island, and Vermont. All the reporting steel foundries had come into operation within the last few years. Changes in management within the past 10 years were reported in 15 cases. The size of business done by the 58 individual companies in this reporting group is indicated by the following figures: Nine com- panies w r ith individual sales of less than $50,000; 15 firms with sales between $50,000 and $100,000; 20 between $100,000 and $250,000; 9 between $250,000 and $500,000; and 5 exceeding $500,000 but less than $1,000,000. As to. the size of pay rolls of these 58 companies, whose aggregate was 3,177 wage earners, there were 20 concerns employing fewer than 25 workers each ; 15 companies employing be- tween 25 and 50 workers; 14 employing between 50 and 100; and 9 employing over 100. Thus, more than three-fifths of the companies represented in these reports had an individual pay roll of fewer than 50 wage earners. Three iron foundries in Connecticut each reported a single branch plant within New England. PRODUCTS AND RAW MATERIALS As reported by 64 companies in this group, there were 37 which made only a single product — castings — and 27 concerns which made supplementary products in addition. Among the supplementary or special products reported by iron foundries are sash and elevator weights, steel and composition castings, bronze tablets, chucks, and customwork. The important raw materials reported by the iron and steel foundries are pig iron, coke, sand, and scrap. Foundries making nonferrous castings report the purchase also of aluminum, brass, bronze, copper, tin, zinc, lead, white metal, and spelter in indi- vidual cases. Scrap is purchased in the local markets. The sources of coke are divided between New England and other sections. Most of the foundries state that their molding sand comes from sources outside New England. Miscellaneous supplies aside from those men- tioned were obtained mainly from local markets. SALES TRENDS The trend of sales indicated by 5G companies which gave figures for the years 1921 to 1925 showed for the latest year an increase of 20 per cent over 1923 and of 33 per cent over 1924. Decreases in business w T ere attributed by several concerns to high cost of labor and materials, competition with other regions, changes in nature of demand, and local business conditions. Individual concerns whose sales showed an increase attributed their growth to new sales methods, to extension of territory, to general conditions of railroads, to improved quality of castings, and to better general business con- ditions. 228 INDUSTRIAL STRUCTURE OF NEW KNCJLAND The principal market and the chief sources of competition were reported to be New England in almost every instance. Jobbing foundries have their market limited almost entirely to local trade. A few iron foundries reported sales and competition in the Middle Atlantic and East North Central States, with occasional sales in other sections. All the steel foundries sell their products in New England, finding some competition from the Middle Atlantic States. Sales within New England, as indicated by 57 concerns replying, represented 81 per cent of their aggregate business, which amounted to nearly $10,000,000. A few concerns reported less than half of their volume of business as arising within New England. The ma- jority of the companies reported that their proportion of sales to the New England market is increasing. Very little export business is indicated. A single iron foundry reported foreign sales, and the amount in this case was very slight. Actual production, in terms of maximum capacity, as based on reports from 44 companies, in 1925 was 63.5 per cent of the maximum possible capacity. There were 10 companies reporting an increase in plant capacity since 1921 and two reporting reductions, while 36 plants reported no change. DISTRIBUTION METHODS Distribution methods of these foundries run generally parallel to those of the larger group of foundry and machine-shop products. Selling direct to the trade is the prevailing method; a few concerns sell through wholesale dealers. Trade-marks and advertising. — Only a small portion of the report- ing companies indicated the use of an identifying mark on their products. Advertising is generally confined to local mediums and to direct mail methods. One concern reported the use of personal solicitation and magazine advertising, and another depended entirely upon a business directory. NEW ENGLAND MARKET FOR IRON AND STEEL Note. — The section on the Now England market for iron and steel was prepared by Edwin Bates, of the Domestic Commerce Division of the Bureau of Foreign and Domestic Commerce. This analysis of the market for iron and steel in New England is based on a series of interviews with New England representatives of iron and steel concerns and with contractors and engineering organi- zations; also upon such published reports as are available. 2 The extensive industrial development of New England, together with the fact that its iron and steel industry is limited, forms the basis for an extensive market for iron and steel products in the region. According to a survey made in 1923, and allowing 10 per cent for increased consumption since then, the New England States consume annually about 1,760,000 tons of iron and steel products for all purposes. Some of these products are in finished form, such as sheets, plates, wire, and bars, but there is a considerable tonnage 3 Special assistance was given in the present report by Mr. Herbert i\ Simonds, Boston representative of the Pentoo Publishing Co. A report on steel distribution in New England, prepared by Mr. Simonds, appeared in the Iron Trade Review for Feb. 22, 1923, pp. 581-685. METAL MANUFACTURES 229 purchased in the semimanufactured state, such as blooms, billets, and slabs. New England purchases also an important tonnage of pig iron to be converted into cast-iron products or into steel for local uses. A considerable volume of iron ore is transported to sea- board points to be converted for the manufacture of iron and steel. The demands of the New England market for various iron and steel products used in the industries of the region are first considered. The demands of the market for these materials in building and con- struction activities are discussed separately. SHEET STEEL The wide range of small metal manufacturers in New England makes an extensive market for steel sheets of various types. Follow- ing are some of the manufactured products in which sheets are con- sumed to a greater or less degree : Ice boxes, gas stoves, automobile bodies, optical case stock, range boilers, stove pipe, containers for maple sugar and sirup, electrical sheets, radio instruments, ventilat- ing machinery, skylights, textile machinery, metal lockers and filing cases, ferrotype plate, culverts, billboards, window boxes, ash and oil cans, poultry supplies, paint cans and pails, vegetable, fruit, and other cans, office trays and furniture, car roofs and metal ceil- ings, railway lanterns, and hot-water bottles. The present annual consumption of sheets in New England for these purposes is esti- mated at 188,500 tons. Under the heading of sheets are included blue annealed sheets, tin plate, galvanized sheets, and black sheets. Sheets are defined as being less than one-eighth of an inch in thickness; all products ex- ceeding this thickness are classed as plates. The heavy-machinery in- dustries of New England require the blue annealed sheets rather than the black sheets ; according to members of the trade, the market for blue annealed sheets is greatly on the increase. In the estimate of tonnage for 1923, blue annealed sheets accounted for 66,000 tons ; tin plate, 55,400 tons ; galvanized sheets, 38,000 tons ; and black sheets, 12,000 ions.,. The market for galvanized steel roofing in New England has shown practically no increase during recent years. This has been attributed largely to the rather stationary condition of New England agriculture, but partly, also, to the fact that steel has to be shipped in from outside sources. Some members of the trade feel that less sales pressure has been exerted in the sale of galvanized roofing in the New England States than in some other sections — for example, Ohio and Pennsylvania. STEEL PLATES The total annual consumption of steel plates in New England is estimated to be about 60,500 tons. Of this amount from 27,500 to 33,000 tons are used for structural purposes, and a similar amount is estimated to be consumed in shipbuilding, in gas and water works, and in locomotive and car repairing. New England at the present time thus offers a limited market for steel plates. During the war, when the shipbuilding industry was at its height, there was a heavy consumption of plates, but in recent years this has been limited 61232°— 30 16 230 INDUSTRIAL, STRUCTURE OF NEW ENGLAND largely to companies manufacturing boilers and automobile parts, and to water and gas companies. The chief national consumption of plates is in the manufacture of locomotives and railway cars, in which New England presents practically no market except the demand for repair purposes. WIRE PRODUCTS It is difficult to get an estimate of the New England consumption of wire products, because this section is a producer of these products from wire rods, as well as a direct producer of such final products as nails and fencing. It is estimated that upward of 250,000 tons of wire rods are either produced in New England or shipped in from outside mills. To this figure should be added a further item of 80,000 tons to cover the amount of finished wire and finished wire products manufactured outside and shipped into New England. Of the consumption of wire products nails are believed to account for approximately 82,500 tons and fencing and poultry netting together about 7,700 tons. There is also an important production of nails in the New England States, the principal producing plant having an annual capacity of 200,000 kegs. In addition to the consumption of wire rods in the manufacture of nails and wire, some are used in the manufacture of gratings and handles for tools. This brings the grand total for all wire products consumed in New England to upward of 340,000 tons. SEAMLESS STEEL TUBING Steel tubing finds its principal uses in steam boilers and in the manufacture of bicycles, motor cycles, and metal furniture. Con- sumption of steel tubing in New England is estimated at 5,000 tons annually. This estimate is based largely upon the number of regis- tered steam boilers in the New England States. One of the principal factors affecting the market for boiler tubing has been the decreased use of steam power and an accompanying increase in the use of electric power. Changes in boiler products in recent years also have increased the utilization of boiler tubes and have extended the period of their use. Besides this, the practice has developed of employing used boiler tubes for other tubing purposes. STEEL BARS The annual New England consumption of steel bars is estimated at 582,000 tons, in addition to some 70,000 tons used for reinforcing steel. In the industrial consumption cold-drawn bars are estimated to amount to 100,000 tons, and special machinery bars with high manganese or carbon content, at 16,500 tons ; while the consumption of alloy steel for tool steel and for electric and steel crucible bars is estimated at 25,500 tons annually. The principal demand is in the class of commercial soft-steel bars, whose consumption is estimated at 440,000 tons a year. A careful check of the principal consumer's in the six New England States showed the following distribution of soft-steel bar consumption: Twenty-nine consumers in Connecticut use annually 230,000 tons; 36 METAL MANUFACTURES 231 in Massachusetts, L92,000 tons; 14 in Rhode Island, 86,000 tons; 19 in Maine, New Hampshire, and Vermont, together, 45,000 tons, making a total of 503,000 tons, which, after allowing for duplications and possible exaggeration, is reduced to 440,000. The total annual con- sumption for all classes of bars, except in reinforcing steel, is thus estimated at 582,000 tons. BLOOMS, BILLETS, AND SLABS , Shipments of blooms, billets, and slabs into New England are estimated not to exceed 33,000 tons annually. This tonnage, how- ever, is converted into such products as wire, nails, and bars, and is accounted for under those headings. Shipments for the manufacture of nails and bars are principally in the form of wire bar, which is drawn and manufactured into the finished product in the New Eng- land factories. Imports of steel billets in 1926 amounted to nearly 3,000 tons, which were almost entirely absorbed by rolling mills at Portland, Me. PIG IKON The consumption of pig iron in the New England district is esti- mated to exceed 630,000 tons annually. 3 This consumption is dis- tributed over a wide range of metal manufactures. Its principal outlet is in the production of textile machinery, w T hich is estimated to require from 95,000 to 120,000 tons annually. Pipe and pipe fittings and valves occupy second place ; electrical machinery is estimated to stand third; and stoves and radiators are fourth and fifth, respec- tively. Other important products into which pig iron enters, in the order of estimated importance, are as follows : Machine tools, hard- ware, gasoline engines, Diesel engines, scales, shoe machinery, gaso- line pumps, and railw r ay castings. Considerable change has taken place in recent years in the sources of New England pig iron. Previous to the war the sources of pig iron for the New England market were fairly well distributed among four producing centers. The Birmingham district, Virginia, eastern Pennsylvania, and the Buffalo district, under freight rates and prices then prevailing, were competitors in New England consuming terri- tory. Very little pig iron is now purchased from the Virginia and Birmingham districts, not over 25,000 tons coming from these two districts combined in 1925. Eastern Pennsylvania and Buf- falo now supply the bulk of the tonnage from domestic sources. It was estimated that in 1925 not over 10,000 tons of the New England consumption originated in the Pittsburgh district. The Buffalo district, including some furnaces in western Pennsylva- nia, supplied in that year about 180,000 tons. Eastern Pennsyl- vania furnaces, now supplying 60,000 tons, are finding it increasingly difficult under developing competition to maintain their position in the New England market. 4 Receipts of foreign pig iron have become a matter of importance. In 1925 the New England market absorbed 124,352 long tons of im- 3 See Iron Trade Review, July 8, 1926, pp. 80-82. 4 See Kreutzer, E. C, Competition is Barring Eastern Pennsylvania furnaces, in Iron Trade Review July 8, 1926, p. 82. 232 INDUSTRIAL STRUCTURE OF NEW ENGLAND ported pig iron out of a total importation of 441,425 tons for the entire country, thus taking more than one-fourth of the total pig- iron imports. Imported pig iron has presented competition chiefly at Atlantic seaboard points. The Massachusetts customs district receives almost all the foreign pig iron entering the New England States. The sources of pig iron imported into the Massachusetts Customs District in 1926 were as follows, in tons of 2,240 pounds : Germany 28, 531 Netherlands 21,116 British India 8, 759 United Kingdom 5, 600 France 2, 500 Belgium 650 Sweden 40 Total 67, 196 The interesting developments in the New England trade in pig iron during the past few years include the construction of furnaces at Troy, N. Y., primarily for supplying the New England market, and the completion of the Mystic Iron Works, at Everett, Mass. These furnaces combined are capable of furnishing annually, for the New England trade, 350,000 tons or more and thus supply a large per- centage of the New England demand for pig iron. The development of these furnaces marks a significant step that promises to have an important influence on the extended use of pig iron in the New England market. IRON ORB Pig-iron production at Everett, Mass., started in September, 1926. The plant of the Mystic Iron Works has a capacity of about 190,000 tons of pig iron a year, requiring over 350,000 tons of iron ore. The location of this plant at seaboard, with the advantage of cheap water transportation in securing its ore supply, provides competition for imported pig iron in the highly industrialized portion of New England. Of the total requirements of iron ore for this plant, a substantial portion is supplied from the Adirondack section of New York State. During 1926 this plant imported from foreign countries 179,296 long tons of iron ore, the bulk of which came from Newfoundland. The following table shows the origin of foreign iron ore imported for consumption at Everett in 1926 (in tons of 2,240 pounds) : Newfoundland 108,834 Algeria i 54,900 Sweden 14,937 Germany 535 Total 179,296 Pig-iron production at Everett is in the nature of a by-product from gas production. The furnace at Everett utilizes the coke by- product from the ovens of the extensive gas plants at that point. The combination of location at seaboard for utilizing imported pig iron METAL MANUFACTURES 233 and the use of the by-products of the gas plant provide favorable conditions for competition with the imported pig iron in the New England market. IRON AND STEEL USED IN NEW ENGLAND CONSTRUCTION The foregoing section has dealt with the market for iron and steel products that are used mainly in the manufacturing industries of New England. In the present section attention is given to the mar- ket for iron and steel products that are used mainly in construction activities. The principal forms of these are structural steel, rein- forcing steel for concrete construction, iron and steel pipe, and steel rails and switch materials for railroad uses. Structural steel. — The structural-steel requirements of the New England States are estimated to be about 200,000 tons annually. This includes structural shapes fabricated by shops in New England and also fabricated material shipped direct to contractors and builders. Of the total consumption, it is estimated that Greater Boston consumes annually 40,000 tons. Bridge contracts frequently form an important part of the con- sumption of structural steel. Railways of this section are important users of steel for bridges and trestles, and their requirements in this market have been found more or less regular from year to year. Public highway bridges are important in some years, and in most instances these require steel over a period of several months following the time a contract is awarded. The capacity of the structural-steel fabricating plants in New Eng- land is estimated by 'the trade at 90,000 tons annually. During recent years the actual output of these plants has probably been between 60,000 and 75,000 tons. No estimates are available regarding the volume of shipment of steel shapes into the New England market by outside fabricating firms. A few companies which specialize in the fabricating of steel shapes for certain types of factory buildings per- form the fabricating at their plants in Ohio or Pennsylvania. The bulk of New England buying of structural steel is from producers in the Pittsburgh district and in eastern Pennsylvania. Competition with foreign producers is encountered at seaboard points, where cheap water transportation favors the foreign product. The imports are mostly in the smaller items, such as angles, chan- nels, and small bars. During 1926 imports of structural shapes and building forms into the New England market from other countries increased heavily, a total of 7,895 gross tons being purchased from abroad. Although this was a heavj^ increase over the previous year, and amounted to more than ten times the imports of structural shapes in 1924, it represented only about 5 per cent of New England's con- sumption of this class of steel products. The bulk of the 1926 im- portation was concentrated in the Massachusetts customs district, and, so far as could be learned in the trade, was largely absorbed in the metropolitan Boston district. Special inquiries developed the in- formation that the large fabricating plants in New England do not import foreign steel, and that the imports are taken by iron and steel warehouses, Analysis of the monthly reports of the Massachusetts 234 INDUSTRIAL STRUCTURE OF NEW ENGLAND customs district in 1926 shows the countries of origin of structural steel for that district to be as follows : Pounds Belgium 8, 736, 076 Germany 6, 857, 128 Netherlands : 186,397 United Kingdom 10,475 Total 15, 790, 076 Figures are not available covering the seasonal movement of struc- tural steel into the New England States, but the seasonality is not thought to be so pronounced as the movement of other classes of building materials. Structural steel can be worked at any time of the year, and winter weather does not measurably affect the erection of steel frameworks. This point has been repeatedly emphasized by structural steel contractors in New England, as well as throughout the country. One of the difficulties of equalizing the use of structural steel throughout the year, however, lies in the prevailing practice of deferring the taking out of building permits and the awarding of contracts until the spring months. Reinforcing steel, — The demand for reinforcing steel depends upon the extent of reinforced concrete construction. This type is impor- tant not only in the construction of buildings but also in laying down streets and highways. One of the difficulties in obtaining estimates of consumption of reinforced steel lies in the definition of the item itself. If steel mesh is included along with reinforcing bars, the tonnage is appreciably greater. Estimates in the trade relative to the tonnage of reinforcing steel vary quite widely. It appears, how- ever, that the consumption of the New England market for all types of reinforcing steel amounts to about 70,000 tons annually. In recent years the demand for reinforcing steel in New England has shifted from industrial buildings to educational buildings and to automobile showrooms and garages. In the city of Boston, for ex- ample, members of the trade have estimated that public garage space sufficient for storing 30,000 automobiles has been constructed during the past five years. This is a type of building which lends itself par- ticularly to reinforced-concrete construction. There has been a considerable demand for reinforcing steel also in the construction of apartment houses of three and four stories, and of small hotels. Previous to the war and during the war period, according to members of the trade, the demand for reinforcing steel was largely for industrial buildings, but the future demand from buildings of this nature in New England is not expected to be large. The bulk of the New England demand for reinforcing steel is in the States of Massachusetts, Rhode Island, and Connecticut, where State highway construction and building activity have been most concentrated. Special effort was made to obtain an estimate of the amount of reinforcing steel used in State highway construction in New England. From replies to letters directed to the State highway departments the following table, showing the consumption of rein- forcing steel, has been developed. METAL, MA N 1 1 PACT I rRES 235 Reinforcing Steel Tonnage Used by New England Highways in l ( .)l2r> and 1920 [Based upon reports from Stato highway departments] State 1926 1925 State 1926 1925 Maine - - Tonsi 1,239 194 650 2,041 Tons i 139 205 325 2,324 Rhode Island Tons l 520 2 4,000 Tons* 445 \ o\v Hampshire^ . _ Connecticut ._ 2 3,000 Total \ l assachuset t s_ _ 8,644 6,438 i Of 2, 240 pounds. 2 Estimated. Street-construction requirements in reinforcing steel would prob- ably raise these figures by 1,500 to 2,000 tons, making the total esti- mated requirements for street and highway reinforcing in the neigh- borhood of 10,000 long tons. On the basis of 2,700,497 square yards of concrete construction in New England, as reported for the year 1926 by the Portland Cement Association, this seems a fair estimate of the market demand for this purpose. The market for reinforcing steel is supplied not only by American producers but to a certain degree by foreign manufacturers. Bel- gian reinforcing steel is concentrated principally at seaport cities, where the product can be delivered advantageously by the foreign producer because of relatively low ocean transportation rates. Dur- ing 1926 the foreign producer enjoyed a differential at seaboard points of $8 to $10 per ton. Higher freight rates to interior cities greatly limit the area of competition of the foreign manufacturer. Iron and steel fife. — The principal items to be considered under the heading of pipe for uses in construction are cast-iron pressure pipe for gas and w r ater, wrought-iron pipe, and steel pipe. The combined annual consumption of these products by the New England market amounts to between 200,000 and 225,000 gross tons. Each of these types is analyzed separately. Cast-iron pipe. — According to the estimates made by the trade, the New England market consumes about 100,000 tons of cast-iron pipe annually. Of this amount it is estimated that probably 40,000 tons are used for gas lines and 60,000 tons for water lines. In New England, as in other parts of the country, the market for cast-iron pipe is determined largely by city growth. Very little pipe is sold for replacement purposes, as its life extends over several decades. The principal opportunity for selling cast-iron pipe comes from special appeals to towns which have no public waterworks system. As the cities and towns of New England have already reached a high degree of development in their water and gas systems, there is little occasion for new expansion, and this is an important factor in limiting the market for this product. The New England market is supplied with cast-iron pipe princi- pally from four manufacturers, all located in Pennsylvania and New Jersey. Only in special instances have southern manufacturers been able to obtain contracts in this market in competition with the northern producers; likewise the New Jersey and Pennsylvania producers have seldom been able to sell farther south than the State 236 INDUSTRIAL, STRUCTURE OF NEW ENGLAND of Virginia. There is little competition in the New England market from producers located in the Pittsburgh section. The radius of competition of pipe manufacturers is practically fixed by prevailing freight rates. The freight rate to New England points on cast iron from New Jersey and eastern Pennsylvania is about $5 per ton on a carload commodity basis, while the freight rate from Birmingham to the New England market is more than $10 per ton ; it is still higher to points in eastern and northern Maine. The recent establishment of a plant for making cast-iron pipe at Everett, Mass., adjacent to the Mystic Iron Works, is significant in providing an important local source of supply for the New England market. Foreign competition in cast-iron pipe has made itself felt in New England, particularly at seaport cities, such as Boston. In this, as with other steel products, the foreign producer is favored by com- paratively low ocean freight rates, which permit strong competition at seaboard points. Apparently there has been little use of the foreign product at inland points in New England, on account of prohibitive local freight rates. French producers have made the strongest bid for the market. One of the difficulties, however, has been the inability of the French producer to supply a product -which would meet city specifications. In most instances the French product has been too high in phos- phorus, thus tending to make the pipe brittle. Another difficulty encountered by foreign producers is the fact that the public- works departments of the large cities, such as Boston, usually send two in- spectors to a plant supplying pipe for use on public contracts, and the necessary supervision can not be given to foreign concerns. Imports of cast-iron pipe into New England from foreign coun- tries in 1926 amounted to 11,900 gross tons, of which 6,882 tons entered the Massachusetts customs district and 5,018 tons the Con- necticut customs district. With the exception of some 300 tons im- ported from Czechoslovakia, the total import trade in this product was held by French producers. The principal shipments were re- ceived in the months of May, June, July, and August. One of the circumstances encountered in the New England market for cast-iron pipe in connection with waterworks systems is the presence of a considerable amount of organic matter in the water. This fact has presented a real problem to New England municipali- ties, where it has been found that in a period of 25 years the incrusta- tion of the pipe has sometimes reduced the capacity of the supply system by as much as 40 or 50 per cent. This problem, which, of course, has been encountered in other sections of the country, has led to the development of cement-lined pipe, which involves coating the inside of the pipe with a mixture of sand and cement. This treatment has been found effective in eliminating the tuberculation and incrustation. In the opinion of members of the trade, pipe suitable for this type of lining will probably find increasing favor in the New England States. Figures on the seasonality of shipments of cast-iron pipe are of practically do service in showing the seasonality of use. The con- struction of water lines and gas lines usually begins in southern New England about April 1 and in northern New England about April METAL MANUFACTURES 237 15. May and June are the most important months from a consump- tion standpoint, as many projects beginning in the spring are com- pleted by July 1. The larger buyers usually place their orders during June for projects to be completed in the latter half of the year. October and November are usually months of low consumption. The slack season of the year in New England is between November and April 1. Trade practices in the sale of cast-iron pipe have changed consid- erably since the war. Up to 1918 the producers experienced a consid- erable seasonal slump in their production between November 1 and April 1. It had been the practice to make shipments of cast-iron pipe as contracts required, and this meant a heavy shipping season and a rush of production during a period following the 1st of April. In recent years producers have offered inducements to large buyers to place their orders during the off season. As a result, a considerable amount of buying has taken place in January and February for delivery at seller's option, thus allowing plants to continue operation and to make shipments at their convenience. As a result of obtaining off-season contracts with delivery at his option the manufacturer has been able to sell his product at $1 or more per ton below the price made necessary when carrying a stock at his plant and making shipments* according to the execution of con- tracts. At the present time, according to members of the trade, 15 per cent of the sales of the entire year are made in December, 20 per cent in January, and 10 to 15 per cent in February. Wrought-iron pipe. — Estimates made by the trade are to the effect that between 9,000 and 10,000 tons of wrought-iron pipe are con- sumed annually in New England. The number of companies sup- plying this kind of pipe is quite small, and, so far as can be learned, these companies are located in the Pittsburgh and eastern Pennsyl- vania districts. Wrought-iron pipe is used principally in heating, ventilating, and plumbing, and finds its principal competition from cast-iron, copper, and brass pipe. At the present time the manufacturers of copper and brass pipe are presenting considerable competition throughout New England, largely because of the importance of the copper and brass industry in the lower Connecticut region. One of the effective sales arguments of the manufacturers of copper-lined pipe has been the fact that tubercles do not form on a copper surface. The high percentage of organic matter in the water supply of New England cities has presented the same problem to producers of wrought-iron pipe as to the makers of cast-iron pipe. Increasing interest is shown in the use of cement-lined wrought-iron pipe. Ac- cording to the testimony from New England representatives cement- lined pipe is giving very satisfactory results. The manufacturers of wrought-iron pipe at the present time are turning out, at a price only slightly higher than that for the regular product, a specially inspected product that is satisfactory for cement lining. The higher cost of wrought-iron pipe for heating, ventilating, and plumbing is an important factor in its competition with cast-iron and steel pipe. During 1926, when wrought-iron pipe was selling at approximately $150 per ton, steel pipe could be supplied on the job at about $70 per ton. These prices, however, are not strictly 238 INDUSTRIAL STRUCTURE OF NEW ENGLAND comparable, for the reason that a given length of cast-iron will weigh considerably more than an equal length of the wrought-iron or steel product. Representatives of the manufacturers of wrought-iron pipe stress the fact that the relatively stationary population of New England cities has had considerable effect in limiting the market for their product. In the development of additions to a city the sale of sewer pipe and water pipe comes first ; the demand for plumbing, heating, and ventilating equipment follows over a period of several months or years. Sales in New England come largely from replacements of worn-out pipe in homes and from construction of new residences within the present confines of the cities. Steel pipe. — The annual requirements of the New England market for steel pipe are estimated by the trade to be about 100,000 tons. Steel pipe enters into competition with wrought-iron and cast-iron pipe in heating and plumbing and with vitrified-clay pipe for sewer construction. One of the limitations on the use of steel pipe for waste disposal in New England is the rather high acid content of the factory waste in a number of industrial centers. Imports of steel pipe into New England have been negligible. Steel rails, frog and switch material. — According to an analysis of the New England market for rails and fastenings, between 110,000 and 115,000 tons of these materials are used annually. 5 The requirements of the individual New England railroads for rails are estimated to average approximately as follows : Tons Central Vermont 2, 000 New York, New Haven & Hartford , 40', 000 Boston & Maine 25,000 Boston & Albany 8, 000 Maine Central 8, 000 Bangor & Aroostock 2,000 Rutland 2^000 Total 87, 000 To these figurese for rails should be added about 4,800 tons for bolts and tie plates, on the basis of 5% per cent of the tonnage of rails for these materials. Frog and switch materials are estimated to average about 4,500 tons annually, bringing the total consumption by steam railroads up to 96,300 tons. The New England street rail- ways are estimated to use each year from 10,000 to 12,000 tons of girder rails, and from 5,000 to 7,000 tons of tee rails, making their total rail consumption about 17,000 tons, in addition to 500 tons of material for track fastenings; the total annual street railway con- sumption thus being in the neighborhood of 17,500 tons. The total consumption of rails and frog and switch materials by the steam and electric railroads of New England is thus in the neighborhood of approximately 113,800 tons a year. SUMMARY OF LMFOBT IUADE IN (RON AND STEEL In addition to the heavy purchases of iron and steel from domestic sources by the New England market, an appreciable tonnage is im- •Iron Trade Rerlew, Feb. 22, 1923, pp. 581-*2. MKTAI. MANUFACTURES 239 ported annually from foreign countries. In the three years 1924 to 1!>*2(). inclusive, the imports of iron and steel into New England ranged between 10,000 and 50,000 long tons annually. The bulk of the tonnage in each year, however, was represented by the lower- value items, such as iron ore, pig iron, and iron and steel scrap. At the New England seaboard, American steel producers meet competi- tion from foreign manufacturers, and in some items this competition is lather keenly felt. It is localized, however, at port cities, such as Boston and Providence, and because of comparatively high local freight rates it is prevented from becoming effective over a very wide area. MERCHANDISING OF IRON AND STEEL The New England requirements for iron and steel are supplied through a number of merchandising channels — by shipments direct from manufacturers outside the New England States, by manufac- turers within the region, by warehouses operating from outside the region, and by warehouses operated at various points in New Eng- land. Some of these warehouses are operated by iron and steel manu- facturers and others by special iron and steel jobbers. A large part of the tonnage of iron and steel is shipped in carload lots to the New 7 England market from producers direct to consumers. Most of the consumers who buy regularly from month to month are in a position to make carload purchases, and special contracts for supplying structural steel for bridges and large buildings are made on a car-lot basis. The warehouse operated by the iron and steel manufacturer or by an independent jobber is largely in the nature of a convenience unit for the distribution of products. Frequently a large fabricating plant which finds itself in need of one or more special items ob- tains its requirements direct from the nearest warehouse. In the main, however, such an organization depends upon direct shipments from the manufacturer. The warehouse is a regular source of sup- ply for small contractors in structural steel and in cast and wrought- iron pipe for plumbing and heating and ventilating. As a carload of heating and plumbing supplies constitutes an outlay of some $3,000, few of the heating and plumbing contractors desire to carry so large an investment. They come directly, therefore, to the warehouse to fill their orders. In accordance with trade custom they are given a discount from the regular price at which the same product would be sold to the consumer. In addition to the warehouses maintained by independent jobbers, iron and steel manufacturers operate warehouses for the purpose of supplementing the jobbers' stocks. In a number of slow T -moving lines which the independent jobber hesitates to carry, the manufacturer frequently maintains stocks for the convenience of the trade; various examples cited by manufacturers' representatives showed that orders filled by them had reduced unnecessary delays by supplying direct from their warehouses. On a number of these slow-moving lines the manufacturer's warehouse secured a turnover of from two times to two and a half times a year. Estimates made by manufacturers' representatives indicated that the warehouse business in New England usually comprises not more 240 INDUSTRIAL STRUCTURE OF NT5W ENGLAND than 20 to 25 per cent of their annual sales, and in some sections the percentage is probably very much less than this. Warehouses main- tained at points such as Boston are able to supply a considerable amount of the local metropolitan market without heavy additional expense for transportation, while the supplying of such inland points as Springfield and Worcester requires payment of a heavy transporta- tion charge either by truck or by rail. Most of the manufacturers of iron and steel maintain representa- tives in Boston, some of them serving only as selling offices and others operating warehouses in connection with their selling offices. The most of these include the entire New England States in the terri- tory of the Boston office. A few, however, do not include the State of Connecticut in the Boston territory but handle the trade of this State through their New York office. In most instances the Boston office is independent of other offices, but in one or two cases it operates as a branch of the company's headquarters in New York, HARDWARE GROUP HARDWARE The manufacture of hardware ranks among the first 12 indus- tries of New England in its contribution to the region's income, and in Connecticut it is among the three leading industries of the State. Connecticut contributes about 95 per cent of the total New England production. In three States — Connecticut, Massachusetts, and Rhode Island — the hardware industry in 1927 added about $49,- 000,000 to the New England manufacturing income, with a total gross output valued at $71,435,000. It provided a market for materials, including fuel, power, and supplies, of upward of $22,500,000. There were 92 establishments in the three States. The industry in New England provided employment for upward of 19,000 wage earners, who were paid about $23,300,000 in wages. (See fig. 37.) Outside New England the principal producing States, in the order of their contribution in 1925 to the total national income from hard- ware manufacture, were as follows: Illinois, $19,727,000; Michigan, $17,455,000; Pennsylvania, $14,486,000; New York, $11,567,000; Ohio, $10,564,000 ; New Jersey, $4,516,000. Three other States— Wisconsin, Missouri, and Iowa — contributed upward of $1,000,000 each, and Indiana, about $800,000. As a source of income from this industry, New England contributed nearly as much as Illinois, Michigan, Pennsylvania, and New York combined. The New England income from the hardware industry in 1925 was approximately (luce times what it was in 1914, as shown by the value added by manufacture, in comparison with an increase of one-third in the 10-year interval from 1904 to 1914. These increases are some- what below the expansion for the United States as a whole, in con- sequence of a relatively greater expansion in other parts of the country. In 1904 Connecticut produced one-half the hardware of the entire country; in 1914 its proportion was 39.13 per cent, and in 1925 it was approximately 37 per cent. The industry in this State, how- ever, has shown very substantial and regular growth, the number of workmen employed increasing from about 15,500 in 1904 to 19,000 in L914, and to more than 21,500 in 1925. The State's manufacturing METAL MAN UFACTUKES 241 income from the hardware industry more than tripled from 1914 to 1925. From 1925 to 1927 this industry in New England experienced a definite reduction in activity, although little change appears in the ;x;>SHARDWARE,CUTLERY * MECHANICS' TOOLS NEW ENGLAND STATES 1927 DOTS AND ftWRCS SHOW NUMdCR IN £ACH COUNTY J*** <&£> c^Q Figure 37 total number of manufacturing establishments. The statistics for the individual States for these two years are shown in the following- table, with comparative figures for Connecticut in 1914 and 1904. 242 INDUSTRIAL STRUCTURE OF NKW ENGLAND Manufacture of Hardware in New England States, 113^5 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Connecticut: 1927 57 64 29 •27 6 5 18, 201 21, 565 731 798 55 61 22, 299 26, 338 926 1,027 74, 193 43 21, 174 23, 767 1,183 1,499 178 118 68,013 83,026 3,080 3,958 343 257 46,839 59, 259 1,897 2,459 165 1925... Massachusetts: 1927 1925 Rhode Island: 1927.. 1925 _ 139 Total: 1927 92 96 68 75 485 476 20.2 19, 079 22, 424 19, 004 15, 488 47,834 52, 349 42.8 23, 299 27, 366 10, 230 7,323 60, 827 65, 567 41.7 22, 535 25, 384 10, 226 7,528 71, 877 77, 503 32.8 71, 436 87, 240 28, 808 21, 481 208, 254 225, 053 38.8 48, 901 1925 i 61, 856 18,783 Connecticut: 1914.. 1904.. 13, 953 United States total: 1927.... 136, 377 1925 147, 550 New England as per cent of United States, 1925 41.9 1 Not including 3 establishments in New Hampshire, 2 in Maine, 2 in Vermont. experiences of manufacturers Eeplies were received from 37 establishments regarding their manufacturing and selling practices, and of this number 33 com- panies had aggregate sales in 1925 of nearly $44,000,000, their com- bined output representing more than 50 per cent of the total industry in New England. The replies were well distributed, with Connecti- cut represented by 19. Massachusetts by 14, New Hampshire by 2, and Maine and Rhode Island by 1 each. The group includes estab- lishments making a wide variety of products of which the following are typical: Automobile, coach, and carriage hardware; builders' and cabinet hardware; casket, furniture, trunk, and suitcase hard- ware; marine, car, and railway hardware; kitchen and household hardware; piano and organ hardware; locks and keys; and mis- cellaneous products. Raw materials. — The principal raw materials reported by these companies are steel, iron, and brass. A few reported, also, silver, copper, wood, and other supplementary materials. The majority of the manufacturers stated that they purchase steel and brass within New England, but purchases of iron are about evenly divided be- tween New England and outside sources. Size of establishments. — The reporting group includes companies whose annual sales volume ranged from $15,000 a year to upward of $20,000,000. There were 10 companies with individual sales of less than $100,000; 12 between $100,000 and $500,000; 5 between $500,000 and $1,000,000; and 6 large concerns exceeding $1,000,000, 1 of which had sales of more than $20,000,000. The aggregate pay roll of 36 reporting concerns was 11,322 work- men. Approximately half of these concerns employed fewer than 50 METAL MANUFACTURES 243 workmen each, and half of them more than 50. There were 17 com- panies employing' below 50, of which 12 reported fewer than 25 on their pay roll; 8 companies employing between 50 and 100; 4 be- tween L00 and 250; and T employing more than 250 workmen; the latter included 1 company with a pay roll exceeding 1,000, another exceeding 2,000, and 1 employing more than 5,000 workmen. Plant practices. — Use of incentive methods of wage payment was reported by two-thirds of the replying companies; one-third of them stated that no incentive methods were used. The great variety of styles, sizes, and types of product made by hardware plants presents difficulties in the application of such incentive plans. It is evident, however, that New England hardware manufacturers in general have made progress in this respect. For the 23 companies reporting the use of wage incentives, 55 per cent of their aggregate number of employees were so paid. Seasonal employment is not so pronounced in this industry as in some other lines. A substantial number of the firms reported efforts to overcome seasonal fluctuations in activity by the addition of sup- plementary products to their main line or by manufacturing for stock during otherwise dull periods. For example, a concern making awn- ing hardware supplemented this line with the manufacture of pipe fittings. A concern making marine hardware states : " We have been adding to our line everything in marine goods for which we can find a market." A manufacturer of gocart and velocipede hardware reports the addition of a line of velocipedes and gocarts. Many other examples of similar nature were given, showing a tendency to overcome seasonal activity by supplementary products. Age of establishments. — The manufacture of hardware is one of the older industries of New England. The average period of operation of the 37 reporting plants was 41 years. Eleven of these had been in operation for more than half a century; 20 of them between 10 and 50 years; while 6 companies had been in operation not more than 10 years. Changes of management w r ithin the last 10 years were reported in nine instances. Reasons for location. — Reasons for locating plants in New Eng- land, as indicated in the replies, are quite varied, labor conditions being given by the largest number of concerns. Nearness of markets has been an important consideration with many concerns making hardware specialties for use by other manufacturers. This applies particularly to the smaller establishments. For example, one con- cern making piano hardware sells the most of its product to local piano manufacturers. One of the largest concerns in Connecticut states that labor conditions constituted the sole reason for starting and continuing in this section. The industry, which was started many years ago by local men, has, during the intervening years, built up a skilled-labor market which has attracted other concerns. Branch plants. — Branch plants were reported in only a few in- stances. One of these was a Connecticut maker of casket hardware, which has a branch in Boston, and the other a very large manufac- turer of builders' hardware, which has a branch plant in an Ohio city. A prominent Connecticut company has established a western branch, stating as the main reason its inability to compete on a 244 INDUSTRIAL STRUCTURE OF NEW ENGLAND tonnage basis in New England because of freight rates. This con- cern states that it is possible to maintain its position in New England on high quality and high-priced goods requiring highly skilled workmen, where freight is an insignificant item, whereas on heavier products freight is a deciding factor. Operating ratio. — Additions to plant capacity since 1921 were re- ported in nine instances. These are mostly increases of from 10 to 25 per* cent, but three concerns doubled their capacity and one of the largest companies making builders' hardware reports a 50 per cent addition. The ratio of output in 1925 to the maximum capacity was, in most cases, from 75 to 85 per cent. The weighted average for 30 concerns giving figures was 78 per cent of maximum capacity. Twenty-one concerns reported operations at upward of 75 per cent of the maximum, and 10 others had between 50 and 75 per cent. Sales trends. — The general sales trend for the reporting group has been decidedly upward since 1921. Figures from 32 companies show an increase of 71 per cent in aggregate volume of sales from 1921 to 1925. The greatest increase took place in 1923 and this was fol- lowed by a slight decline in 1924, with full recovery in the following year, so that there was a slight net increase from 1923 to 1925. In this latter 2-year interval there were 18 concerns whose individual sales increased and 13 whose sales decreased. Analysis of the in- dividual sales figures shows that the increases in this period were more frequent among the larger companies, while the smaller com- panies experienced the greater number of sales reductions. The general reasons assigned for increased sales volume were lower manufacturing costs, which have been a factor in reducing selling prices; new sales methods, which have resulted in an extension of markets; and new products. Increased building activity was also mentioned. Individual reasons given for decreased sales volume were competition from manufacturers in the West and in the South, reduction in the use of horses, and general business conditions. Markets. — A majority of these companies find the principal market for their product outside New England. Ten companies reported that more than half of their sales were made within New England; 16 stated less than 25 per cent. Keports from 29 companies with aggregate sales of $40,000,000 show that approximately 20 per cent of the total sales were made to New England customers. Export business was reported by 13 companies whose aggregate business was $15,000,000, the weighted average of exports for this group being approximately 5 per cent of total sales. The exports of individual companies ranged from 5 per cent to 15 per cent. One small concern reports exports of 50 per cent. Methods of distribution. — The prevailing methods of distributing the product of hardware manufacturers, as shown by these replies, is through wholesale houses, with direct sales to manufacturing con- sumers as second in frequency. Twenty-two companies reported marketing their product through wholesalers, in many cases sup- plementing this channel with direct sales to retailers and other manufacturers. Ten companies of the total number reported sales direct to the retailer, and a small number rely upon selling agents for disposing of their product. The unweighted average of selling METAL MANUFACTURES 245 costs for the entire group was 10 per cent of the value of products in 1925. Use of brands, trade-marks, and advertising. — Use of a private brand or trade-mark is generally prevalent in this industry, Ihree- fourths of the reporting companies indicating this practice, though five small and medium-sized concerns stated that none of their prod- ucts are trade-marked. Many of the companies, however, trade- mark their entire output. The proportion of trade-marked goods for 25 reporting companies was 87 per cent of their aggregate sales. The use of advertising was reported by three-fourths of those re- porting, but nine companies stated that they did no advertising at all. National mediums prevail, in which those most generally used are trade journals and direct mail. Advertising expenditures of the companies, giving figures, were approximately 2 per cent of the value of their products. Improvements in manufacturing practice. — Improvements of vari- ous sorts in manufacturing practices are indicated by a large pro- portion of the reporting companies. The safeguarding of workers against accidents has received attention from the greatest number, while next in frequency is improvement in methods of controlling production and in internal organization. A considerable number of concerns report emphasis upon inspection methods and standardiza- tion of products. Comparatively few companies reported the em- ployment of industrial research. CUTLERY AND EDGE TOOLS The cutlery and edge-tool industry includes plants that are en- gaged primarily in the manufacture of table and kitchen cutlery, pocket knives, putty knives, butchers' knives and implements, razors, scissors, pruning shears, clippers, axes, hatchets, chisels, and similar lines. It does not include silver-plated cutlery, which is classified with plated ware in another group. There were 67 establishments engaged in the manufacture of cutlery and edge tools in Massachu- setts and Connecticut in 1927. Massachusetts leads considerably in the number of wage earners, and markedly in value of output and of revenue from manufacturing. This industry added to the manufac- turing income of the two States in 1927 upward of $33,800,000, with products valued at more than $42,000,000. The industry employed approximately 6,000 wage earners who were paid in wages $7,334,000, and provided a market for materials, fuel, and supplies amounting" to $8,330,000. The total for this industry in the two States shows a material in- crease in value of output and in manufacturing income from 1925 to 1927, although there was a slight reduction in the total number of wage earners and in the total wages paid. In Connecticut there was a reduction in the number of establishments from 31 to 25, and a slight falling off in output and in income. In Massachusetts, how- ever, there was an increase in establishments from 39 to 42, an in- crease of 210 wage earners and an increase of more than $1,000,000 in the manufacturing income. The growth of this industry in New England since 1904 has slightly surpassed the growth for the country as a whole. The value 61232°— 30 17 246 INDUSTRIAL. STRUCTURE OF NEW ENGLAND added by manufacture in these two States almost quadrupled from 1914 to 1925. In the latter year their product was about 52 per cent of the total national output, in comparison with 40 per cent in 1914 and 49.5 per cent in 1904. The following table shows the ac- tivity in Massachusetts and Connecticut, both individually and col- lectively in 1927 and 1925, as well as the comparative figures for 1914 and 1904. Manufacture of Cutlery and Edge Tools in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 42 39 25 31 3,407 3,197 2,585 2,912 4,174 4,028 3,160 3,803 5,883 5,507 2,447 2,966 33, 705 32, 309 8,431 9,227 27, 822 26, 802 5,984 6,261 1925 Connecticut: 1927 1925 Total: 1927 _. 67 70 5,992 6,109 7,334 7,831 8,330 8,473 42, 136 41, 536 33, 806 33,064 1925 i Massachusetts, 1914 37 33 1,947 5,008 1,067 2,931 833 2,537 4,354 7,357 3,521 4,819 Connecticut, 1914 Total, 1914 2 70 6,955 3,998 3,370 11,711 8,340 Massachusetts, 1904 39 40 2,169 4,565 1,091 2,460 811 2,113 2,585 6,168 1,774 4,055 Connecticut, 1904 Total, 1904 3 79 230 211 33.2 6, 734 17, 178 16, 407 37.2 3,551 20,270 20, 226 38.7 2,924 19, 126 20, 562 41.2 8,753 76,688 80, 263 51.7 5,829 57, 562 United States total: 1927 1925 : 59, 701 55.4 Connecticut and Massachusetts as per cent of United States, 1925 i Not including 2 establishments in Rhode Island, 2 in New Hampshire, 1 in Maine. 2 Not including 6 establishments in Maine, 5 in New Hampshire, 2 in Vermont, 1 in Rhode Island. a Not including 9 establishments in Maine, 7 in New Hampshire. A CROSS SECTION OF THE INDUSTRY Thirty-nine manufacturers of cutlery and edge tools submitted replies to a special inquiry regarding their operating practices, and of this number there were 30 companies giving sales figures for 1925, aggregating $34,500,000, and representing more, than 80 per cent of the total industry in New England. Nineteen of these companies were located in Massachusetts, 13 in Connecticut, 2 in Maine and New Hampshire, and 3 in Vermont. Included in this group of 30 companies were .^5 with individual sales of less than $100,000, 14 between $400,000 and $500,000, 1 between $500,000 and $1,000,000, and 2 exceeding $1,000,000. In the latter was one company over- shadowing all the others with a business considerably in excess of $25,000,000. Size and age of establishments. — The size of 35 companies, as indi- cated by t lie- average- number of persons on their pay roll, was as follows : Nineteen employed fewer than 50 workers each, 7 between 50 and 100 workers. 7 between 100 and 250 workers, and 2 companies METAL MANUFACTURES 247 employed more than 500 workers, one of which had a pay roll of nearly 2,000 workers. Of 31 companies reporting the length of time they had been in operation, 21 had been in business 50 years or more. There were 10 concerns that had been established within the last 10 years, and 14 companies reported changes in management within the last 10 years. Five concerns reported branch establishments, one of which was in a Middle Western State, while another had branches in Mon- treal and in England. Additions to plant capacity since 1921 were reported in 10 instances, and 1 company reported a reduction. Three companies stated that their capacity had been more than doubled, and 4 others had made increases of from 25 to 75 per cent in capacity. The output, in terms of the maximum capacity for 26 companies, exclusive of the largest plant reporting, was 71.4 per cent. This largest concern reported operations exceeding the full single-shift capacity through the employment of night work. Eating this con- cern at 100 per cent brings the average output for the whole group to the high point of 92.3 per cent of the aggregate maximum capacity. Raw materials. — The principal raw material reported was steel, used by practically every concern, with a smaller number using iron and several employing also silver, nickel, brass, wood handles, cel- luloid, and various other minor articles used in manufacture. In most cases it was said that steel and iron were purchased from sources outside New England. Manufacturing practices. — A remarkably high proportion of em- ployees of these reporting companies are paid by some incentive method of wage payment, such as piecework or a premium plan, the weighted average for 25 concerns giving data regarding this prac- tice being 68 per cent of the aggregate pay roll. Only 4 of the 29 which made definite statements stated that they paid none of their employees by such methods. In this industry where labor costs absorb approximately 40 per cent of the value of the product, it thus appears that the development of incentive methods of wage payment has received a high degree of recognition. Regarding the seasonal periods of activity in this industry, the average number of employees at quarterly intervals in 1923 and 1925 indicates a general period of slack employment in the late spring and summer months and a period of maximum activity in the fall. Relatively few of the companies report the development of supple- mentary products to overcome a seasonal tendency, but many of them maintain uniform employment by manufacturing goods for stock during dull periods. Improvements in manufacturing practice most frequently emphasized are in the line of factory inspection. One company states that the finer quality of finished knives, brought about by better inspection methods, has resulted in increased sales. Another states that production control has made possible an increase of at least 10 per cent in output. Various others indicate similar effects from improvements in recent years. Sales trends. — The figures of sales show a decidedly upward trend in volume during the last few years, with a maximum reached in 1925 for 25 reporting concerns, amounting to an aggregate increase of 96 per cent over 1921. From 1923 to 1925 there were 15 concerns whose individual sales increased and 13 which decreased. An exam- 248 INDUSTRIAL STRUCTURE OF NEW ENGLAND ination of the sales trends of individual companies discloses that it is the larger concerns whose sales have consistently increased, and that they attribute the increase, in most cases, to extension of sales territory and to an improvement of their selling methods. Practically all the companies in this group reported that they dis- tribute their products nationally and that a majority of their total sales are made outside New England. The weighted average of New England sales for 26 companies was slightly less than 10 per cent; only 6 concerns stated that the majority of their sales were made with- in New England. Exports were reported by 20 companies, the weighted average for the group being 35 per cent of their aggregate business. This includes two very large concerns, one of which had exports of 34 per cent and another of 85 per cent. Excluding these two from consideration, the average exports of the other 18 was 6 per cent of their aggregate sales. Distribution methods. — The prevailing method of distribution re- ported is through wholesale dealers, but most of the companies mar- ket a portion of their product through other channels, of which sales direct to the retailer and to the manufacturing consumer were most frequent. Most of the companies reported reliance upon two or more distribution channels. Use of trade-marks and advertising. — The use of trade-marks pre- vails generally in this line. Twenty-one of the companies indicated that a weighted average of 77 per cent of their aggregate output was marketed under an identifying brand name. Advertising also appears to be the prevailing practice, only four companies indicating that they did no advertising. National advertising predominates, through the medium of trade journals and direct mail. MECHANICS' TOOLS Small tools for the use of mechanics and machinists include such articles as expansion bits, taps, dies, gauges, drills, reamers, jigs and fixtures, chucks, micrometers, pipe cutting and threading tools, files and rasps, bit braces, broaching tools, hack-saw blades, carpenters' tools, and other small mechanical tools. Although this classification is distinct from other similar manufactures, many companies whose main product is machinery and machine tools turn out considerable quantities of these small tools in addition, either for their own use or for sale. Hence, the official figures for the small-tool industry do not represent the entire output. According to the 1927 census this industry in four New England States (not including New Hampshire and Maine) provided a manu- facturing income upward of $23,000,000 to this region, and the gross value of its products was upward of $83,000,000. The industry pro- vided employment to ;m aggregate of 8,052 workers with a pay roll of upward of $10,000,000, and afforded a market for materials amounting to more than $10,000,000, including fuel, power, and supplies. The making of small tools is concentrated in Massachusetts and Connecticut, although (here are many important establishments in Rhode Island which turn out substantial quantities of these products in connection with the manufacture oi machine-tool equipment. Massachusetts represents more than 60 per cent of the reported New METAL MANUFACTURES 249 England total, and Connecticut about one-half as much as Massa- chusetts. The industry is of considerable importance to Vermont, adding to its manufacturing income in 1927 about $1,119,000. This industry shows a very slight reduction in total activity in the New England States from 1925 to 1927. The number of establish- ments in Massachusetts, Connecticut, Vermont, and Rhode Island was reduced from 153 to 142, most of this reduction taking place m Massachusetts. There was a slight falling off also in the total num- ber of wage earners, which took place principally in Massachusetts and was partially offset by increases in Connecticut. The total wage payments in these four States show a slight increase. There was a reduction of about $1,000,000 in the gross value of the output and a relative reduction in the net manufacturing income. In Vermont there was a slight increase in the value of the output but a slight reduction in the net manufacturing income, as shown by the value added by manufacture. The following table gives the census figures for the individual States for 1927 and 1925, together with comparable totals for 1914 and 1904. Manufacture of Machinists' and Mechanics' Tools in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 72 82 49 49 9 8 12 14 4,589 4,909 2,830 2,695 459 449 174 166 5,838 6,139 3,734 3,306 474 475 248 222 5,061 5,715 4,112 3,710 814 688 126 130 19, 113 21, 206 11, 586 10, 472 1,933 1,889 521 568 14, 052 1925 15, 491 7,474 6,763 Connecticut: 1927 1925 Vermont: 1927 1,119 1925 . 1,201 Rhode Island: 1927 395 1925 438 Total: 1927 142 153 185 162 ' 657 663 23.1 8,052 8,219 7,586 4,615 25, 232 25, 340 32.4 10, 294 10, 142 4,588 2,497 34,465 34, 294 29.6 10, 113 10, 243 4,310 2,626 37, 057 39, 023 26.2 33, 153 34, 135 13, 650 8,317 117, 431 121, 263 28.1 23, 040 1925 i 23, 893 9,339 5,691 80, 374 82, 240 29.1 New England total: 1914 1904 United States total: 1927 1925 New England as per cent of United States: 1925 1 Not including 5 establishments in Maine, 4 in New Hampshire. New England contributed in 1925 about 29 per cent of the United States total manufacturing income from this industry. Massachu- setts surpassed any other State. Outside New England the leading State is Ohio, which is nearly as important as Massachusetts. Next in order are Illinois and Michigan, of approximately equal impor- tance, each deriving upw T ard of $9,000,000 in income from this source. These States are followed by Pennsylvania and New York, each of which contributes less than Connecticut, with individual State in- 250 INDUSTRIAL STRUCTURE OF NEW ENGLAND comes exceeding $6,000,000. New Jersey follows, with less than $3,000,000, and Indiana and Iowa each contributed upward of $1,000,000. Comparison of figures for New England with those for the entire United States shows that this group of States contributed more than 40 per cent of the total national income from this industry both in 1904 and in 1914, while its share in 1925 had fallen to 29 per cent. New England thus held its national position in the decade preceding 1914 but fell back materially after 1914 in consequence of great expan- sion in other sections of the country. This particular line of metal manufacture has thus shown a much more conservative growth in New England than the kindred lines of hardware and cutlery. The in- come from tool manufacture in New England increased about 150 per cent from 1914 to 1925, while that from hardware increased by nearly 200 per cent and that from cutlery nearly 300 per cent. Comparison of figures for 1925 with those for 1914 and 1904 shows that in 1925 there was approximately the same number of establish- ments in New England as 20 years ago. The number of wage earners shows an increase of 80 per cent over 1904, while the value of product and the income from manufacture have more than quad- rupled. As compared with 1914 there was in 1925 an increase of about 700 in the number of wage earners, while the value of product and the value added by manufacture increased one and one-half times. EXPERIENCES OF SMALL TOOL MANUFACTURERS Size and age of establishments. — A large group of manufacturers with aggregate sales of nearly $20,000,000, representing nearly 57 per cent of the whole industry in New England, submitted informa- tion regarding their operations. These concerns specialize in one or more of the products mentioned and range in size from plants with business of a few thousand dollars up to one company with annual sales exceeding $3,000,000. There were 77 replies in all, and 68 crave complete sales figures. Of this latter number, 51 reported individual sales of less than $250,000 each and 17 more than $250,000. There were 29 companies with sales of less than $50,000 ; 12 between $50,000 and $100,000; 10 between $100,000 and $250,000; 7 between $250,000 and $500,000; 5 between $500,000 and $1,000,000; and 5 exceeding $1,000,000 in sales. The 17 companies with individual sales over $250,000 represented 85 per cent of the total sales for the 68, and the 5 companies with sales exceeding $1,000,000 made up 55 per cent of the total. The aggregate pay roll of 70 concerns giving figures was 4,511 workers. Fifty-eight companies bad fewer than 100 workers each and 12 had more than LOO. There were 44 whose pay roll was fewer than 25 and 5 with more than 250 each. The largest company employed 700 workers. The 12 largest companies accounted for 73 per cent of the total employment of the group. The average age of 77 reporting plants was 23 years. There were 51 thai had been established within the last 25 year's, and 25 of these had started business within 10 years; L3 companies have been in continuous operation for more than 50 years. Changes in manage- ment within the lust 10 years were reported by 22 concerns, Branch METAL MANUFACTURES 251 manufacturing plants were reported in operation by 8 of the 77 companies. One company reported a branch in Canada; another 1 company, one in Missouri; and a third has a branch in Virginia; the other branches are located within New England. Raw materials. — The principal raw materials purchased are steel and iron castings. A few companies reported also brass, wood for handles, grinding wheels, and other minor materials. The steel is purchased mainly from sources outside New England, but iron cast- ings are bought principally from local sources. Additions and operating ratio. — Additions to plant capacity since 1921 were indicated by 20 companies, the increases ranging from 10 per cent up to fivefold the original capacity. Six companies stated that their capacity had been doubled or more than doubled, and 5 others reported more than a 50 per cent increase. No reductions were stated. The degree of utilization of plant capacity, as shown by reports of 53 companies with aggregate sales of $14,600,000, is indi- cated by the weighted average of 71.5 per cent of maximum capacity. Thirty-five companies reported operations at 75 per cent or upward, while 8 others were operating at less than one-half the maximum capacity. Plant practices. — Little seasonal tendency exists in this industry, according to the reports received. Employment is fairly uniform throughout the year and slack periods are due more to general busi- ness conditions than to seasonal influence. This regularity of em- ployment is largely due to diversification in types of customers, partly to the practice of manufacturing for stock during otherwise slack periods, and partly to the development of supplementary products. The use of incentive methods of wage payment was indicated by upward of one-third of the reporting companies, the weighted aver- age for 22 concerns, giving data covering an employment of 3,450 workers, being 45 per cent. Two of the largest companies paid one- half of their entire pay roll on an incentive basis and 16 companies paid more than one-half in this way. Sales trends. — The sales of these companies were, in general, de- cidedly upward since 1921, the aggregate for 53 concerns showing an increase of 69 per cent over this period. Practically all this increase took place, however, previous to 1924; the aggregate sales of 64 companies were only a fraction of a per cent greater in 1925 than in 1923. In the latter 2-year interval individual increases were shown by 34 firms and decreases by 26. The increases were relatively more numerous among the smaller concerns, and the de- creases were more frequent among the companies exceeding $250,000. The latter decreases, however, were in most cases relatively slight in proportion to the individual volume of business. Sales increases were attributed in individual replies to improved design of tools, improved workmanship, increased building, more automobiles, increase of syndicate stores, increased sales effort, and protective tariff. Decreases in sales volume were attributed in indi- vidual cases to " inability to get skilled labor at fair wages," the westward trend of business, demand for cheaper products, general overproduction, and competition from Germany. Improvements reported. — Various improvements in manufacturing practices were reported by individual companies, One concern, 252 INDUSTRIAL STRUCTURE OF NEW ENGLAND which operates its factory only 5 days per week, 9 hours per day, stated that it had obtained an increase of 50 per cent in production per man employed. Another stated that manufacturing costs had been reduced considerably through standardization of products. A third reports a decided improvement from the installation of a new cost-accounting system. In another instance a manufacturer states that production control, adjusting plant capacity to demand, pur- chasing schedules, and standardization of products had resulted in a decrease of approximately 25 per cent in inventory investment and an increase from 1.1 to 2.2 per cent in turnover. Location of markets. — Most of the output of manufacturers report- ing in this line finds its market outside New England. The reports of 58 companies, with aggregate sales of $18,000,000, showed a weighted average of 15.7 per cent sold within New England. One large manufacturer of taps and dies, doing a $2,000,000 business, reported 25 per cent of his sales in New England. Another million- dollar company, making wrenches, stated that only 2 per cent of its business comes from New England. Most of the large companies reported from 10 to 20 per cent of their .sales within the region. Of the whole group, 23 companies reported a majority of their sales to the New England market, while 19 concerns sold less than 10 per cent in that area. Increasing New England sales were reported by a greater number of concerns than those showing decreases. Exports were reported by 27 companies, with aggregate sales exceeding $17,000,000. The weighted average of exports for this group was 14 per cent of their total sales. Fourteen companies reported exports ranging from 10 per cent to 25 per cent, 1 reported 30 per cent, and 12 less than 10 per cent. Several of the latter exported only 1 or 2 per cent of their total. Methods of distribution. — The principal distribution channels are wholesale houses and direct sales to the consumer (manufacturer). Twenty-two companies stated that they market their entire product through wholesale houses, while an equal number use this channel in conjunction with others. Eighteen companies .stated that they sell their entire output direct to the consuming manufacturer, while nearly as many others use this method in conjunction with other agencies. Only two manufacturers reported sole reliance on direct sales to retailer, although a number of companies market a portion of their product directly through retailers. Use of trade-marks and advertising. — Identification of product with trade-mark or brand name is practically universal among these reporting companies, practically the entire product being sold under a brand name. All but eight of the reporting companies indicated the use of advertising. Most of them employ national mediums, in which the trade journal predominates, supplemented by dealer helps and direct mail. The average advertising costs for the group was relatively high, being 2.6 per cent of total sales. BRASS, BRONZE, AND OTHER NONFERROUS METALS The manufactures discussed in this section include products made from ingots an (J bars of brass, bronze, and other nonferrous alloys, and numerous products for remanufacture, as well as fully manufac- METAL MANUFACTURES 253 tured articles made principally from these materials. There is a wide variety of uses and types in this group. Copper enters into all the important products of this industry, being combined with zinc in brass manufacture and with tin in bronze. Brass has a great variety of uses because of the ease with which it can be cast and machined. This industry represents 2 per cent of the total New England in- come from all manufacturing activity of the section; in Connecticut it comprises over 8 per cent of the State's manufacturing income, and ranks third in importance among all its manufactures. This industry contributed about $60,000,000 to the revenue of New England in 1925, as shown by the value added by manufacture, and its products had a gross value of more than $170,000,000. There were nearly 26,000 persons engaged in this line, who received in wages and salaries over $39,000,000. The industry gave employment to nearly 23,000 wage earners and paid more than $31,000,000 in wages. It provided a market for various materials, including fuel, power, and supplies, amounting to $111,000,000. IMPORTANCE IN NEW ENGLAND More than 90 per cent of the national production of this industry is contributed collectively by New England, the Middle Atlantic States, and the East North Central States, in which New England surpasses slightly each of the other two sections. The importance of New England is indicated by a contribution of approximately one- third of the value of the total national production in this line. In this group of States were 36 per cent of all the w T age earners of the United States in 1925 for this industry, and it contributed 35 per cent of the wages paid by the whole industry. The manufacturing income from this industry in New England in 1925 was 53 per cent of the national total and in 1914 it was 39 per cent. (See fig. 38.) Connecticut contributes more than 90 per cent of the total activity for New England. This type of manufacture is among the three leading single industries of that State. The industry is concentrated largely in half a dozen manufacturing cities and towns in and adja- cent to the Naugatuck Valley. The city of Waterbury in 1925 repre- sented 53 per cent of the State total. Connecticut alone represents over 30 per cent of the total national production, while the other New England States have approximately 3 per cent. Outside New England the next important city in this line is Detroit, Mich. Connecticut has continuously been the leading State of the Nation in this industry. In 1904 Connecticut contributed more than half (53 per cent) of the national value of products, and the State of New York then ranked second, with about 8 per cent. In 1909 Connecticut contributed 45 per cent of the national value of products and New York 15 per cent. In 1914 Connecticut's contribution was 43 per cent, while that of New York was still 15 per cent. In 1919 Con- necticut represented 35 per cent and New York 14 per cent of the national value of products. This New England industry shows a slight net increase from 1925 to 1927 in its contribution to the region's manufacturing income, al- though there was a considerable reduction in the gross value of the 254 INDUSTRIAL STRUCTURE OF NEW ENGLAND output and in outlay for materials, and a slight falling off in the number of wage earners and in wages paid. The total number of establishments was practically the same in the two years. There was approximately the same number of establishments in 1925 as in r \ ~T ~p,SCATAQUi5 I 1 V 1 WwON""! 1 /vis f^v V FRANHUN \ OKUAN3 \£SSt> If BIKNINO 7oX-—^ \\MNOHAM ^7 A v** / /~%v 1 i L \\.\^r. \ LOCATION OF ESTABLISHMENTS \ MAKING ^ BRASS, BRONZE, COPPER r AND OTHER NON-FERROUS PRODUCTS IN [X NEW ENGLAND STATES y\ 1927 \ CT\ DOTS AND FIOURCS SHO* NUMBC* IN EACH COUNTY ) WCR \j^DDL£S£K x^. * I ' T>^ a *A" ' 1 1 lCnFlti D I £fuTfonc\ ' 0l L A "9-i """<> .IT. v?* \V • ' \ • • 1 X 'St '^ \ r( z* RN57ABLi 1 ^*-U/ IV 1 0NO0H c ^2d <=£ J y^ (P0 4+Z2 4(.) Figrure 38 1914, bul there was substantia] growth in number of wage earners — fin increase since L914 of more than 4,000 workers. The value of the products increased L25 per cent in this 11-year interval, and the region's revenue increased 229 per cent, in comparison with a national increase of 285 per cent. In the preceding decade there was a slight METAL MANUFACTURES 255 falling off in New England — V/ 2 per cent — in comparison with a national increase of 27 per cent. The growth of the industry in New England has resulted from an increase in the size of plants rather than from an increase in number. The average number of wage earners per plant in New England was 110 in 1914 and 141 in 1925. The averages outside New England were only 49 in 1914 and 45 in 1925. In the matter of wages it is a significant fact that the average yearly wage per worker for this entire industry in New England was considerably lower than the average for the entire United States, the figures being $1,377 and $1,440, respectively. The average value of product turned out per wage earner in New England was $7,480, in comparison with $8,698 for the rest of the country. The importance of the industry in each of the four States of New England for which separate statistics are available is shown in the following table. Manufacture of Beass, Bronze, and Other Nonferrous Alloys in New • England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year W T ages Cost of materials Value of products Value added by manu- facture Connecticut: 1927 --- 67 64 82 80 11 12 3 6 20,442 20, 415 1,912 2,182 115 105 63 100 28, 538 28, 339 2,585 2,811 147 129 75 117 97, 278 102, 689 7,584 7,581 318 344 119 293 152, 390 156, 142 12, 688 13, 197 663 727 402 502 55, 111 1925 53, 453 5,105 Massachusetts: 1927 1925 5,616 345 Rhode Island: 1927 1925 383 New Hampshire: 1927 283 1925 209 Total: 1927 163 162 169 1,044 15.5 22, 532 22, 802 18, 608 62, 942 36.2 31, 345 31, 397 11, 041 90,613 34.6 105, 299 110, 906 57, 903 337, 641 32.8 166, 143 170, 568 76, 072 519, 725 32.8 60, 844 59, 662 1925 i New England total, 1914 2 18, 170 United States total, 1925 ___ New England as per cent of United States, 1925 2 182, 084 32.8 1 Not including 2 establishments in Vermont, 1 in Maine. 2 Not including 2 establishments in Vermont. The manufacture of brass^ bronze, and copper products is a long- established industry in New England, and its products were among the earliest manufactures. Of 25 representative companies in this line, 7 have been in existence well over 50 years, and 2 of them more than a century. The average age for this whole group was 37 years. CONDITIONS AS SHOWN BY REPORTING COMPANIES Size of establishments. — Twenty-five manufacturers supplied in- formation regarding their operations from 1921 to 1925. These represented plants ranging in size from small concerns with an annual volume of less than $20,000 to an enterprise with a business of $20,000,000. The annual output of these concerns in 1925, in propor- 256 INDUSTRIAL STRUCTURE OF NEW ENGLAND tion to their maximum capacity, was 79 per cent. There was a con- siderable variation among individual concerns. One-fifth of the companies reported branch plants, all of which are located in the same State as the parent company. Additions to plant capacity since 1921 were reported by one-fifth of the companies, with indi- vidual increases varying from 10 to 100 per cent. Reductions during this period were reported in two instances. Rano materials. — The principal raw materials reported in these replies are copper, brass, bronze, and various other alloys, which are purchased in the majority of cases from New England dealers. A number of manufacturers reported, however, that their purchases are made chiefly in New York City. Manufacturing practices. — This industry is subject to little' sea- sonal variation, according to statements of three-fourths of the firms reporting. These stated that production is maintained at a fairly continuous rate throughout the year, affected only by general busi- ness conditions ; consequently few plants have undertaken to develop secondary products or supplementary employment as a means for maintaining regular activity throughout the year. The payment of workers on a basis of piecework or other incentive method was reported by only two-fifths of the 25 firms reporting, three-fifths of them stating that no factory workers were paid on such a basis. A number of the Connecticut plants, however, reported that various proportions of the men on their pay rolls are paid on a piecework basis. Sales and marketing. — The majority of the companies reporting stated that their principal market is outside New England. Re- turns from 21 firms indicated that sales within New England repre- sented 30 per cent of the aggregate volume of the group. Twelve companies stated that their principal market is in the Middle Atlantic States, 11 others reported markets in the East North Cen- tral States, 5 concerns reported important markets on the Pacific coast, and 2 others reported national distribution. Sales in foreign countries were reported by 10 of the reporting companies. The export sales of five of these which indicated the proportions of such trade amounted to a little over 4 per cent of their aggregate sales volume ; exports ranged in individual instances from 2 to 20 per cent. The trend of sales of these representative companies runs gener- ally parallel to that of other industries up to 1924. The volume in 1922 showed an increase of 68 per cent and that of 1923 an increase of 42 per cent over the preceding year. . There was a reduction of 11 per cent in 1924, but this was followed in 1925 by an 18 per cent increase, so that the latter year was higher than any of the preceding years in sales volume of these representative companies. The major- it v of the companies reported an increase in total volume of business in 192:;. 1924, and 1925. while a little less than one-third of the reporting number indicated some falling off in volume. The reduc- tions were attributed to increased competition and to changes in the market demand, while the companies with increased sales generally attributed such increase to lower cost of manufacture, to new selling methods, and to extension of sales territory. METAL MANUFACTURES 257 The principal methods of distribution were indicated to be through wholesalers or direct to the manufacturing consumer. These two channels were about equally divided in the replies of individual com- panies. Most of the products are sold under a brand or trade-mark. The use of advertising was indicated by a little more than half of the companies, these depending mainly upon trade journals and direct mail. JEWELRY, SILVER, AND PLATED WARE JEWELRY The jewelr}^ industry in New England is highly localized in a rela- tively small area of southeastern Massachusetts and Rhode Island. These two States account for almost all the jewelry production of the region. The greater part of such manufacture is concentrated in Providence, in North Attleboro, and Attleboro, and adjacent towns. A small amount of jewelry is made in Connecticut. The -product of Rhode Island, Massachusetts, and Connecticut represented 35 per cent of the national value of product in 1925 and about the same propor- tion of the national income from the manufacture of jewelry. The principal products of New England manufacture are articles for personal adornment made from gold, silver, and platinum, as well as plain, engraved, or chased articles of bronze, brass, copper, or other metals, either with or without precious and semiprecious stones. The industry thus includes both the high-grade jewelry made from the precious metals and personal ornaments made from cheaper materials. The making of jew T elry provided a manufacturing income to Mas- sachusetts and Rhode Island in 1927 exceeding $33,000,000, as shown by the value added by manufacture, exclusive of the cost of materials. The gross output in 1927 had a value exceeding $63,000,000, and the industry provided a market for materials used in manufacture of nearly $28,800,000. In the jewelry manufacture in these two States there were upward of 13,000 wage earners, w T ho were paid more than $15,000,000 in wages. Despite a considerable reduction in number of establishments — • from 360 to 323 — the jewelry output of Rhode Island and Massa- chusetts shows a substantial growth from 1925 to 1927. The gross value of product showed an increase of 7.7 per cent, and the addition to the income from jewelry manufacture increased by 12 per cent in the 2-year interval. There was an increase of nearly 1,000 in number of wage earners in these two States. In 1904 New England produced nearly one-half (46.2 per cent) of the national total and in 1914, 44.5 per cent, thus almost maintain- ing its relative position in the national production. Although there was a considerable recession from 1914 to 1925 in its national position, the value of the New England product increased in this interval about 68 per cent, in comparison with a New England increase of 27 per cent in the 10 years preceding 1914. The importance of the industry in Rhode Island and Massachusetts is shown in the follow- ing table. 258 INDUSTRIAL, STRUCTURE OF NEW ENGLAND Manufactuke of Jewelky in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Rhode Island: 1927 188 220 135 140 7,826 7,039 5,216 5,056 8,696 7,545 6,574 6,378 16, 587 15, 442 12, 206 12,454 35, 451 31,616 26, 781 26,156 18, 864 1925 16, 173 Massachusetts: 1927 14, 575 1925 13, 703 Total: 1927 323 360 516 335 1,367 1,468 24.5 13, 042 12, 095 15, 484 12, 147 24, 116 23, 837 50.7 15, 270 13, 923 8,772 6,203 36, 766 35, 177 39.6 28, 793 27, 896 18, 022 10, 428 76,915 79, 886 34.9 62, 232 57, 772 36, 051 24,611 164, 865 166, 816 34.6 33, 439 1925L.. 29,876 1914 18, 029 1904 2. . 14, 183 United States total: 1927 _• 87, 950 1925 86, 931 Rhode Island and Massachusetts as per cent of United States: 1925. 34.4 1 Not including Maine, 1 establishment. 2 Not including New Hampshire, 1 establishment. CONDITIONS AS SHOWN BY JEWELRY MANUFACTURERS Special information for this survey was provided by 113 jewelry companies who replied to inquiries regarding their manufacturing operations and their markets. The aggregate sales in 1925 of 97 of these companies which supplied figures were in excess of $26,000,000 and represented 45 per cent of the entire New England output, as reported in the census. Thus, these replies provide a very good cross-section of the whole industry. Most of the companies included in this group are makers of mis- cellaneous products for the jewelry trade. Some of these make semi- manufactured articles for sale to other manufacturers who make finished jewelry for the general trade. A few sell a portion of their output to other manufacturers and a portion as a finished product to the trade. Raw materials. — There were 69 companies which indicated the purchase of gold, 38 of these reporting gold plate, and 12 others gold in some other semimanufactured form; the use of brass was indi- cated in 49 cases; silver, 48 firms; and sterling silver and nickel silver, 25 and 19 firms, respectively. Other materials were copper, nickel, white metal, gilder's metal, steel, platinum, zinc, lead, and antimony. Imitation stones were indicated by more companies than were the precious and semiprecious stones. Various other materials incidental to the finished products of this industry were mentioned in small quantities. The source of these materials for companies making finished products for the general jewelry trade was given, in the majority of instances, as New England, 77 companies stating this source. Foreign sources, principally for stones and pearls, were next in frequency, 2. 4 > companies naming this source. Several of the concerns purchased materials in New York and in the other Middle Atlantic States, and a lew stated they made purchases of materials in the East METAL MANUFACTURES 259 North Central States. The majority of the companies whose product is sold to other manufacturers indicated New England as the source of their purchases. Size and age of establishments. — Of the 113 reporting companies almost half had come into existence during the past 25 years and several within 10 years. There were 25 concerns which had been in operation 50 years or more and 35 between 25 and 50 years. Branch plants were reported by 6 Massachusetts companies and by 4 Rhode Island companies, located mainly in near-by towns. One Massachusetts concern established a branch near by in 1916; another concern had a branch in Providence, established in 1920. A Rhode Island manufacturer of a special product reported branch plants in New York and Chicago, established in 1901 and 1906, re- spectively. A concern making college and high-school jewelry re- ports a branch in North Carolina, and another manufacturer estab- lished a branch in Quebec in 1914. The size of individual establishments in this business is indicated by the following classification of the 97 companies giving individual sales figures. Their aggregate volume was in excess of $26,300,000, making the average of individual sales $271,000. There were 16 companies with individual sales in 1925 of less than $50,000 ; 22 com- panies between $50,000 and $100,000; 23 concerns between $100,000 and $250,000; 22 concerns between $250,000 and $500,000; and 14 concerns exceeding $500,000. There were three companies reporting individual sales exceeding $1,000,000. More than half of the companies reported an average pay roll of less than 50 wage earners, and six-sevenths of all the companies reporting had a pay roll of fewer than 100. The classification of 101 companies, according to employment, was as follows : Thirty-four companies, fewer than 25 workers ; 25 companies, between 25 and 50 workers; 26 companies, between 50 and 100 workers; 12 companies, between 100 and 250 workers; and 4 companies, more than 256 workers. Wage incentives. — Incentive methods of wage payment were indi- cated by two-thirds of the companies, the proportions of total em- ployees so paid ranging generally from 10 to 75 per cent, and in most cases being near the lower percentage. The aggregate number of employees paid by piecework or other incentive method was indicated to be about one-third of the total number employed by the reporting companies. Operating ratio. — The ratio of output in 1925 to maximum produc- tive capacity for 69 companies with aggregate sales of $19,500,000 was 66.3 per cent. Of 74 firms stating their percentages, 29 were running at from 75 per cent to full capacity; 36 were operating at 50 to 75 per cent • and 9 factories reported operations at less than one-half of their full capacity. A number of concerns had increased the capacity of their plants since 1921. Five companies reported a doubling and 1 a trebling of capacity; 11 others reported smaller increases, most of them less than 25 per cent. Reductions in capacity were reported in 5 instances ; 1 other concern reported the closing of a branch factory. Of the concerns reporting increases in capacity 2 had sales exceeding $1,000,000 each, 5 others had sales exceeding $500,000, and the rest were less than $500,000. All the companies 260 INDUSTRIAL STRUCTURE OF NEW ENGLAND reporting reductions in capacity had individual sales of less than $500,000. Sales trends. — The trend of sales was reported by 86 companies for the period 1921 to 1925 and by 96 companies for the shorter period, 1923 to 1925. The reports showed a general increase from 1921 through 1923, but after that a small decrease each year. Sales for the year 1925 showed an average increase of 20.7 per cent over those of 1921. There was a decrease of 7.5 per cent in 1924 compared with the preceding year, and in 1925 a decrease of 3.1 per cent, resulting in a net decrease of 10.3 per cent from, 1923 to 1925. More of the smaller than of the larger companies experienced decreases in sales. Nearly three-fourths of the smaller companies with individual sales below $250,000 showed a reduction in volume from 1923 to 1925, while less than half of the large companies with sales exceeding $250,000 showed a decrease for the same period. A continuous increase in sales from 1921 to 1925 was reported by 10 companies and from 1923 through 1925 by 17 companies. Sales within New England, as reported by 73 concerns with an aggregate volume of nearly $20,000,000, comprised approximately 30 per cent of the total. Of this number there were 60 manufacturers for the general jewelry trade whose New England sales amounted to 18.4 per cent of the aggregate total ; and 13 companies whose product was sold to other manufacturers and who made approximately 50 per cent of their aggregate sales within New England. There were 20 manufacturers who reported upward of one-half of their sales as being made within New England, and 14 of this number sold 75 per cent or more in those States. There were 54 other companies report- ing their New England sales as less than 25 per cent, and many of these were less than 10 per cent of their total volume. Of 85 companies expressing themselves regarding the trend of their local sales, 30 stated that their sales within New England had in- creased in the last few years, 37 stated that they had fallen oil, while 18 indicated no change in the situation. Reasons given for expan- sion of sales within New England were an increased line of products adapted to New England styles, expansion of 5-and-10-cent stores, increased sales effort, and more advertising. A few companies attrib- uted increases to favorable general business conditions and one con- cern to " a new, younger, and more aggressive sales organization." Reasons given for decreases in New England sales were changes in demand resulting from style changes, outlays for automobiles and radio-, competition in New England, greater attention to markets outside New England, and better wholesalers or jobbers outside New England. Several companies attributed a decline in their sales within this area to general business conditions or to a slump in the jewelry industry. Location of markets. — Markets outside New England, ranked ac- cording to the number of times indicated, were located in the Middle Atlantic States, the East North Central, (lie South Atlantic, and Bast South Central States, the Central Western States, and the Pacific States. Concerns selling their product to other manufac- turer- confined their markets mainly to New England and the Middle Atlantic States, while a few reported sales in the Central States, the Pacific States, and to foreign countries. Competition was reported in the greatest Dumber of instances from the Middle Atlantic States, METAL MANUFACTURES 261 although several indicated the East North Central States also. Little competition was indicated outside these areas. Export sales were reported by 40 companies, and the average, as stated by 32 which gave sales figures, was 6.4 per cent of their, ag- gregate business. The average exports, according to statements of nine companies selling to other manufacturers, were 4 per cent of their aggregate sales; while for companies selling to the general jewelry trade the average, as reported, was 7.6 per cent of total sales. Three individual companies reported exports of 25, 35, and 85 per cent, respectively; 5 concerns reported 10 to 15 per cent and 25 others less than 10 per cent, while 23 companies stated that they did no export business. Distribution methods. — The prevailing method of distribution in- dicated in the replies was through wholesale dealers. Goods sold for further manufacture are usually sold direct to other manufac- turers. Of concerns turning out finished jewelry for the general trade, 77 reported sales direct to wholesalers, and 23 others reported dealing directly with the retailer. A number of companies also deal through selling agents. A few reported sales through exclusive wholesale distributors and direct to the consumer. Two Rhode Island manufacturers of jewelers' findings reported sales offices in New York, and one of these has a sales office also in Chicago; while a Massachusetts company making general jew x elry products has sales offices in New York and Chicago. One large company making jewelry and novelties for colleges and fraternities, whose sales have had a substantial increase during the past few years and whose plant capacity has been considerably in- creased, have their own selling agents located at strategic points throughout the country. Orders are shipped from the factory direct to the customer. Most of the companies have salesmen who call upon the wholesale or retail trade in assigned territories. Where these sales areas are large the trips are necessarily infrequent, but the salesman with small territory covers the trade several times each year. Salesmen are reported to be paid for the most part, on a com- mission basis, but sometimes they receive a straight salary, which, in some cases, is supplemented with a commission or a bonus. Some companies depend entirely upon their catalogues for sales, but the general opinion is that a better view of marketing conditions and customer demand can be obtained through direct contacts made by salesmen. Some manufacturers state that they cater only to the existing demand, while others strive to create a demand for their product. The general statement is that customers now buy jewelry in smaller quantities and place their orders more often than in former years. Trade-marks and advertising. — Less than one-half of the reporting companies stated that they used a brand, trade-mark, or other means of identifying their product. Thirty-seven companies stated that all their product is 4; Rhode Island, 19; Connecticut, 10; \ew Hampshire, 9: Maine, G; and Vermont, less than 1 per cent. The following table shows the importance of cotton manufactur- ing in the individual Stales and the share of the New England cotton industry in the national total in 1925 and 1927. TEXTILES 283 Importance of Individual States of New England in all Cotton Manufac- tures, 1925 and 1927 Estab- lishments Persons engaged Wage earners Thousands of dollars State and year Wages and salaries Wages Cost of materials Massachusetts: 1927 221 230 126 150 59 58 22 23 1? 16 4 4 93, 599 98, 939 31, 240 34, 420 15, 831 14, 773 14, 974 14, 987 10, 195 11, 851 1,008 880 90, 773 94, 394 32, 665 34, 686 16, 639 15, 190 15, 383 13, 865 9,781 10, 518 1,055 881 152, 439 1925 i 101, 691 102, 762 207, 925 Rhode Island: 1927 55, 335 1925 35, 828 38, 765 72, 487 Connecticut: 1927 32, 666 1925 2 ._ 15, 587 17, 301 39, 585 New Hampshire: 1927 27,188 1925 15, 534 ~~~I2~G59~ 15, 436 36, 608 Maine: 1927 . 17, 351 1925 11,284 24,307 Vermont: 1927 1,361 1925 -_. 904 954 1,957 Total: 1927 449 481 1,610 1,638 29.4 166, 847 175, 850 489,037 468, 352 37.5 166, 296 169, 534 403, 828 377, 050 44.96 286, 340 1925 .. 181, 603 504, 688 483. 724 37.5 186, 502 448, 711 3 420, 224 44.4 382, 869 United States total: 1927 915, 206 1925 1, 132, 330 New England as per cent of United States, 1925 33.8 Value of products Value added by manufacture State and year Thou- sands of dollars Per cent of all manu- factures in each State Per cent of all cotton manu- factures in New England Thou- sands of dollars Per cent of all manu- factures in each State Per cent of all cotton manu- factures in New England Massachusetts: 1927_ 297, 005 358, 239 109, 578 128, 527 64, 113 65, 741 58, 709 58,909 34, 414 41,188 3,146 3,195 9.0 10.4 18.5 20.7 5.0 5.2 17.9 18.0 9.2 11.1 2.3 2.3 52.4 54.6 19.3 19.6 11.3 10.0 10.3 9.0 6.1 6.3 .6 .5 144, 566 150, 314 54,243 56,040 31, 447 26,156 31, 522 22, 301 17,064 16,882 1,785 1,238 8.8 9.2 19.4 20.3 4.6 3.9 21.7 16.5 10.5 10.2 2.8 2.0 51.5 1925 _. 55. 1 Rhode Island: 1927 19.3 1925 20.5 Connect j cut: 1927 _ _ 11.2 1925 _ _. 9.6 New Hampshire: 1927 11.6 1925 __ _. 7.2 Maine: 1927 6.1 1925 ._ 6.2 Vermont: 1927 .7 1925... _ .5 Total: 1927__._ 566, 965 655, 799 1,659,519 1, 819, 886 36.0 280, 625 272, 930 744, 313 687, 556 39.7 1925 100.0 100.0 United States, total: 1927 1925 New England as per cent of United States. 1925 i Excludes data for 6 establishments to avoid disclosing individual operations. 2 Excludes data for 1 establishment to avoid disclosing its operations. 3 Not including 1,463 salaried officers and employees of central admistrative offices, with salaries of $3,893,756. I 284 INDUSTRIAL STRUCTURE OF NEW ENGLAND The importance of cotton in relation to other industries varies in the individual States to a marked degree. In this respect Rhode Island stands at the head, with one-fifth of all its manufacturing revenue derived from this source; New Hampshire comes next with one-sixth; in Maine it is about one-tenth. In Massachusetts, the largest maker of cotton goods in New England, this industry con- tributed less than one-tenth of the State's total revenue from manu- facturing. In Connecticut cotton manufacturing is of decidedly minor importance, contributing less than 4 per cent of the State's total revenue from manufacturing; in Vermont, it is less than 2 per cent. Although some cotton manufacture is scattered about many parts of New England, the greater portion of the industry is localized in a few highly specialized areas. In the total of 67 counties 97 per cent of all spindles in place on July 1, 1927, were in 19 counties. Two adjacent counties — one in southern Massachusetts and the other in Rhode Island — then contained more than one-half the total num- ber of cotton spindles in all New England. Bristol County, Mass., with the cities of Fall River, New Bedford, Taunton, and a number of other towns engaged largely in cotton manufacturing, had more than 7,000,000 spindles, comprising over two-thirds of the total num- ber in Massachusetts and more than two-fifths of the New England total. In this one county there were more spindles in place than in any other single State of the Union. Providence County, in Rhode Island, with the important cotton cities of Pawtucket, Central Falls, Woonsocket, and other mill towns of the Blackstone Valley, had more than 1,600,000 spindles and ranked second in importance not only in New England but in the United States. Two other adjacent Rhode Island counties, Kent and Bristol, added more than 700,000 spindles to this great cotton- manufacturing area. This general region extends westward into Connecticut, whose two easternmost counties, Windham and New London, contained more than 1,100,000 spindles. In these six ad- jacent counties of southern New England there were 10,633,480 spindles, comprising over 63 per cent of the New England total. The next highly concentrated area of the cotton-manufacturing in- dustry is in northeastern Massachusetts and southeastern New Hamp- shire along the Merrimack River, containing the important textile cities of Lowell, Lawrence, Manchester, Nashua, and several adja- cent mill towns. The three counties in which these mills are located — Middlesex and Essex in Massachusetts and Hillsborough in New Hampshire — had a total of 2,144,188 cotton spindles, compris- ing 13 per cent of the New England total. The nine counties in the two major regions just described account for over 75 per cent of the total number of cotton spindles in New England. In addition to these highly concentrated areas there are in central and western Massachusetts three other counties — Worces- ter, Hampden, and Berkshire — each of which had more than 500,000 cotton spindles; and a fourth, Hampshire County, had over 100,000 spindles. In southeastern Maine, also, four neighboring counties — Kennebec, Androscoggin, Cumberland, and York — had a total exceeding 1,100.000 spindles. In New Hampshire two other counties, Strafford and Merrimack, had a total of 437,700 spindles. TEXTILES 285 Of the 19 counties of New England containing more than 100,000 spindles each, 7 are in Massachusetts, 4 in Maine, 3 in New Hamp- shire, 3 in Rhode Island, and 2 in Connecticut. New England had the distinction of containing within its borders in 1925 all but four of the counties of the United States with more than 500,000 cotton spindles. • Principal Counties and Centers of Cotton Manufacture ' County and State Approxi- mate number of estab- lish- ments, 1925 Number of spindles in place, July 31, 1927 Principal centers Bristol, Mass 93 51 6 15 10 17 31 11 11 14 13 6 2 3 5 2 2 3 3 7, 157, 574 1, 643, 774 889, 444 679, 444 663, 088 649, 304 623, 668 575, 300 552, 700 482, 312 477, 352 423, 644 398, 584 325, COO 223, 164 184, 800 157, 768 138, 320 112, 700 Fall River. New Bedford, Taunton. Pawtucket, Woonsocket, Central Falls, Hillsborough, N. H Providence. Manchester, Nashua. Middlesex, Mass Lowell, Waltham. Chicopee, Holyoke, Springfield. Willimantic and several towns in Quine- baug Valley. Fitchburg, Worcester, Clinton. Windham, Conn _ Worcester, Mass Essex, Mass -- Lawrence, Salem. Berkshire, Mass Adams, North Adams. Kent, R. I West Warwick, Warwick. New London, Conn Norwich, New London, and several towns Androscoggin, Me in Thames River Valley. Lewiston. York, Me Biddeford. Strafford, N. H Dover. Bristol, R. I Several towns. Hampshire, Mass __ Holyoke. Kennebec, Me _. _ Waterville, Augusta. Cumberland, Me. Several towns. Merrimack, N. H _ Do. Total for 19 counties. 298 51 16, 357, 940 513, 418 Other 48 counties All New England (67 counties) _ 349 16,871,358 The distribution of cotton manufacturing in New England, out- side the 19 leading counties designated above, may be seen from the following enumeration of mills by counties and States, as of 1925: Massachusetts.— Suffolk, 9; Franklin, 4; Norfolk, 3; Plymouth, 2; total, 18. Rhode Island. — Washington, 7 ; Newport, 1 ; total, 8. Connecticut. — Hartford, 4 ; Middlesex, 4 ; Fairfield, 3 ; Litchfield, 1 ; New Haven, 1 ; Tolland, 1 ; total, 14. Maine. — Sagadahoc, 1 ; Somerset, 1 ; total, 2. New Hampshire. — Rockingham, 3 ; Cheshire, 1 ; Sullivan, 1 ; total, 5. Vermont. — Chittenden, 2 ; Bennington, 1 ; Windham, 1 ; total, 4. NATURE OF PROCESSES Cotton manufacture in New England includes a group of distinct activities and processes that are closely related but result in a variety of products. Starting with opening the bales of raw cotton, the fibers must go through a number of preliminary processes that terminate in spin- ning. The product of this first stage is cotton yarn and its by- product is cotton waste. The yarn produced in the first stage may be put through processes of dyeing. and finishing before being woven into cloth, or it may be woven directly to make gray goods. In some 286 INDUSTRIAL STRUCTURE OF NEW ENGLAND instances the cotton fiber is dyed before spinning, but this is not a prevailing practice. This yarn is the basic material for weaving dif- ferent kinds of cotton cloth and for making small wares, as well as for making sewing thread and lace. Cotton yarn is used also with wool, silk, or rayon in making various woven mixtures and also to supply the cotton content of knitted goods. Most of the woven cotton cloth must go through further processes of bleaching, dyeing, printing, or other forms of finishing before it is ready for the market. The processing depends upon the kind of goods and varies widely with the type of fabric that is being manufactured. The making of woven goods also involves great technical variation in weaving, in equipment, and in the types of yarns that are used. It is thus a highly specialized industry, requir- ing much skill and experience. Expansion in cotton manufacturing has fostered a high degree of specialization and the integration of distinct manufacturing proc- esses. Some cotton mills confine their activity to spinning yarns for sale or for use by other establishments. Some are engaged wholly in weaving cloth or in making small wares from purchased yarns made in other establishments. The greater portion of the industry in New England, however, is carried on in large establishments which have departments both for spinning the yarn and for weaving the yarn into cloth. Most cotton mills spin yarn and weave it into " gray goods," which is the general name for unfinished woven cotton cloth as it comes from the loom. The gray goods pass through various processes of bleaching, mercerizing, dyeing, printing, or other finishing, after leaving the looms. Most of these finishing processes are done in establishments not connected with the mills, fitted with specialized machinery and equipment, according to the nature of the finishing required. While many of the larger concerns have complete establishments for carry- ing through the manufacturing processes, from the spinning of the yarn to the finishing of the cloth for the market, these latter activities are usually carried on by separate concerns which specialize in the distinct equipment and processes necessary for this work. Such processing of cloth is done largely under contract, by the pound or yard. Since the dyeing and finishing of textiles is a distinct branch of textile manufacture, it is discussed separately from cotton manu- facturing. (See p. 319.) The outstanding textiles produced for sale by New England cotton mills are woven goods. These comprise about 70 per cent of the value of all their cotton manufactures, with a product valued in 1925 at close to $400,000,000. Yarns for sale had a value exceeding $68,- 000.000 and comprised slightly over 10 per cent of the value of all cotton manufactures. Cotton small wares, valued at nearly $45,- 000.000, comprised 0.8 per cent of the total, and cotton thread, with a value of nearly $14,000,000, made up 6.7 per cent of the total. Woven goods, yarns for sale, cotton small wares, and cotton thread thus comprised upward of 93 per cent of the value of all New Eng- land cotton manufactures in 1925. In addition to these major items, other products making up the remainder of 6.4 per cent consist of the cotton waste made by Nq,w England mills, with a value exceeding TEXTILES 287 $19,000,000 ; cotton lace, estimated at more than $6,000,000; and other unclassified cotton products worth $16,800,000. These figures for cot- ton manufactures do not include knit goods or the cotton contained in woolen or silk mixtures, except in so far as they are covered by the cotton yarn manufactured in New England for sale to these and other industries. Pboducts of New England Cotton Manufactures in 1925 Product Value Per cent of New England total Product Value Per cent of New England total Woven goods $459, 897, 000 68, 178, 000 44, 901, 000 43, 912, 000 19, 137, 000 69.8 10.3 6.8 6.7 2.9 Cotton lace 1 $6, 267,000 16, 801, 000 1.0 Yarns for sale All other cotton products- Total . 2 5 Thread. 659, 093, 000 100.0 Cotton waste i Estimated for New England. DEVELOPMENT IN NEW ENGLAND THE INDUSTRY PRIOR TO 1880 The present condition of cotton manufacturing in New England, as well as its prospects for the future, is the result of a long period of development, which must be understood in order to comprehend its problems, The growth of this industry has not only been of para- mount significance in the whole industrial development of New Eng- land, but it has influenced greatly the character of factory develop- ment throughout the United States. Cotton manufacture in the United States dates from 1790, when the first successful cotton factory in America was established at Pawtucket, R. L, by an Englishman, Samuel Slater, with the aid of a financier in near-by Providence, whose name is perpetuated in Brown University of that city. This first single venture, with its 72 spindles, expanded in 135 ^ears to a national industry which in 1925 numbered over 1,600 establishments and more than 34,000,- 000 active cotton spindles. Within 30 miles of the first undertaking in Rhode Island, 53 mills, equipped with 448,000 spindles, had been established by 1812, and there were more than a score of other mills in Massachusetts. During and following the War of 1812 the shut- ting off of British goods provided a great stimulus to American cotton manufacture. The first mills were confined to spinning cotton yarn for weaving in the household. The early industry was hampered by lack of power looms. In 1820 two-thirds of the textiles used in the United States was still made in the homes. The first complete cotton factory in America for spinning and weaving was established in 1813 at a waterfall on the Charles River at Waltham, Mass. This was the first factory in the world in which all processes for converting cotton into cloth by means of power machinery were carried on within one building. With the rapid growth of this plant at Waltham, its water power became insufficient. This led to the extension of cotton manufacture 288 INDUSTRIAL BTRTJCTITRB OF NKW ENGLAND to the Merrimack River, where a site that became the city of Lowell was cleared from the forest, and the water power of the river at that point was harnessed by means of a system of canals. The immediate success of the first mill established there in 1823 led to the rapid development of cotton manufacture, whereby Lowell became a city in 1836, and by 1860 was the largest city in Massachusetts outside of Boston. Soon after the founding of Lowell expansion of the cotton industry led to the establishment of mills at other waterfall points along the Merrimack River, where Lawrence, Manchester, and Na- shua soon became important cotton-mill towns. Manchester had five cotton mills by 1845. In Maine mills were established at water- power sites on the Saco River, at Saco and Biddef ord, and at Lewis- ton, on the Androscoggin, at about the same time as those along the Merrimack. In western Massachusetts development of water power on the Connecticut River, by a dam at Hadley Falls, in the same period, brought about the development of Holyoke, which was planned as a cotton-manufacturing town, although it has become more widely known as a paper-manufacturing center. These developments north and west of Boston were promoted and directed mainly by Boston capitalists and were financed by joint- stock associations. They were large enterprises in which great amounts of capital were required. Their success was based upon large-scale operation and the making of standardized products, in which individual mills concentrated their efforts largely upon the manufacture of a single type of fabric. The development of cotton manufacture in the southern portion of New England differed fundamentally from that north of Boston in that the mills were owned and operated mainly by individual proprietors and were not financed by outside capital. Hence the mills were smaller and more numerous; they were also generally established in or close to existing towns and cities. By 1840 the Blackstone River had 94 cotton factories along its banks between Worcester and Providence. In these mills of southern New England attention was given to making a variety of products of high quality rather than to large-scale production of standardized fabrics. After the founding of Lowell, which was made possible by external capital employed in the utilization of water power on a large scale, no new element entered into New England cotton manufacture until about 1850. Up to that time water power was so cheap and plentiful that steam power generated from purchased coal could not compete with it. The smaller streams, however, had been developed to their utmost capacity and the mills were handicapped by fluctuations in their power supply, arising from flood as well as drought. The intro- duction of steam power was therefore a great advantage to cotton manufacture, not only because it increased the regularity of mill operation but also because it could be expanded to meet, the demands of the growing market. As early as 1845 the water power at Lowell was supplemented by the use of steam. In 1870 water furnished power for 08 per cent of the equipment of New England cotton mills. By L905, however, the situation had changed, so that steam then furnished power for 68 per cent of the mill equipment, and water less than one-fourth of the total. TEXTILES 289 The employment of steam power stimulated the development of mills at points on the coast, where coal could be transported cheaply by water and unloaded at docks near by. Thus a new set of rivals to the older mills that had been established at water-power sites in the interior came into being along the New England coast — at Newbury - port, Salem, and Portsmouth, north of Boston, also at Newport, Bris- tol, and Warren, on Narragansett Bay in Rhode Island. In addition to their advantageous location in respect to coal, they had another asset in the humidity of their climate, which is a distinct aid in manipulating cotton fibers. In these coast centers the development of cotton manufacture was promoted by local capital. With the com- bination of these favorable factors the cotton centers along the coast advanced far beyond the inland cotton mills that had been established earlier. In Fall River, which held the leadership in cotton manufacture for a number of years, more than 100 cotton mills became established, although until 1865 this center was of little consequence. Its pros- perity was founded upon the use of tidewater coal, which placed no limit upon the expansion of power which might be used to turn cotton-mill machinery. New Bedford, also on the coast only 20 miles distant from Fall River, turned to cotton manufacturing when the decline of the whal- ing industry led the men of fortune in that city to invest their funds in this industry in its place. Both Fall River and New Bedford were developed by local capital. Close rivalry for first position as a manufacturing center has existed between these two places since 1910. In Fall River the emphasis was placed upon mass production of medium and low grade fabrics, in which the competition from the newly developed manufactures of the South has become especially keen. New Bedford mills, on the other hand, specialized in the finer class of yarns and woven goods, and therefore they have not felt this competition so acutely. A map showing the present location of New England cotton mills would strikingly reveal two facts — (1) that most of the large mills are at water-power sites on fresh- water streams of considerable size, and (2) that those not having water-power facilities are close to tidewater. The older mill development was dependent on power from New England waterfalls. The natural expansion of these older mills has been most pronounced in places where this power was most abundant and regular. New England dominated the market for cotton manufactures until 1880. At that date over 80 per cent of all the cotton spindles of the United States were located in New England mills. There were then only slightly more than 500,000 spindles in the cotton-growing States of the South, and of more than 10,000,000 spindles in all the Northern States, 8,632,000 were in New England. New England mills in 1880 consumed 1,129,500 bales of cotton, while the cotton- producing States consumed only 188,750 bales. The supremacy of New England in this field of manufacturing at that time was unquestioned. CHANGES SINCE 1880 The 45 years from 1880 to 1925 embrace three distinct periods of change in the status of cotton manufactures in the United States. 290 INDUSTRIAL, STRUCTURE OF NEW ENGLAND The first of these, covering roughly a quarter of a century, extended from 1880 to about 1904; the second period includes the decade from 1904 to the beginning of the World War in 1914; the third, ex- tending over 11 years from 1914 to 1925, includes the World War and the subsequent years of adjustment. The first of these periods, ending in 1904, witnessed a marked ex- pansion of cotton manufacturing in the South, especially in North Carolina, South Carolina, and Georgia. The number of cotton- manufacturing plants outside New England increased in this period from 317 to 798, while the number in New England fell off from 439 to 356. The increase in number of active spindles in New England during this first period was 5,571,000, bringing the total number of spindles in this section up to 14,203,000 in 1905 — an expansion of 65 per cent after 1880. There was a greater increase in the number of spindles outside New England, however, amounting to 7,463,000, which brought the total spindles in other States in 1905 up to 9,485,000 — an increase of 369 per cent as compared with 1880. The increase in yardage of cotton cloth woven in New England dur- ing the period from 1880 to 1905, however, exceeded slightly the increase in yardage outside this region; and the increase in value of the New England output was likewise slightly in excess of the total increase in all the other States. In annual income derived from cotton manufactures, as shown by value added by manufacture, the increase in New England exceeded $100,000,000, while in the rest of the United States the increase in value added was less than $64,000,000. By 1900 there were more cotton mills in the South than in New England, but up to that time New England mills continued to con- sume more than one-half of the raw cotton used in the entire country. By 1905 the cotton-growing States had surpassed New England in the quantity of cotton consumed. While the consumption of domes- tic cotton in New England grew from 1,500,000 bales in 1890 to 1,753,000 bales in 1905, in the same interval the cotton-growing States increased their consumption from 539,000 bales to 2,140,000 bales. This period, which ended shortly after the beginning of the twentieth century, thus marks the entry of the South into cotton manufacture as a formidable competitor of the New England mills. The growth of southern mills, which were invading a field previously dominated by the North, occasioned much alarm to the northern cot- ton manufacturers. During this time of rapid Southern expansion the same spirit of industrial development possessed the South as had possessed New England a generation or two earlier. The advantages Avhich favored this expansion of the South were an abundance of cheap labor, cheap water power, and the nearness of supplies of raw cotton. This new expansion went through an early testing stage similar to that of the early cotton manufactures in New England. Inexperience of the promoters and the lack of skilled operatives in this period limited the southern manufactures mainly to the coarser fabrics. TEXTILES 291 New England Consumption of Raw Cotton and Production of Cotton Cloth, Census Ykaks 1880 to 1927, as Compared with Rest of the United States Cotton consumed (thousands of bales) Cloth produced (thousands of square yards) Year New England United States, outside New Eng- land New Eng- land as per cent of United States New England United States, outside New Eng- land New Eng- land as per cent of United t States 1927 1,676 1,610 1, 708 1,434 1,946 1,823 1,614 . 2,397 2,165 2,403 2,414 2,389 2,149 2,219 2,178 2,076 1,882 1,995 2, 144 1,895 2,073 2,060 3 1, 753 5,731 5,074 4,725 4,088 4,575 4,087 3,279 4,023 3,601 4,164 4,374 4,009 3,448 3,358 3,305 3,053 2,616 2,626 3,096 2,644 2,912 2, 849 2,526 22.6 24.1 26.6 26.0 29.8 30.8 33.0 37.3 37.5 36.6 35.6 37.3 38.4 39.8 39.7 40.5 41.8 43.2 40.9 41.7 41.6 42.0 41.0 2, 662, 765 0) 2, 607, 368 0) 3, 143, 581 (0 2, 809, 820 0) 2, 824, 924 0) (0 (0 0) 2 3, 218, 756 0) 0) 0) 2 3, 194, 421 to to to 2 2, 606, 664 (*) to 1,813,479 6, 317, 650 0) 5, 134, 200 0) 5, 120, 639 0) 3, 894, 016 (0 3, 492, 474 0) (0 to to 3, 594, 784 to to to 3, 073, 140 0) to to to 2, 503, 645 0) C 1 ) 459, 799 30.0 ]926 - - (l) 1925 33.7 1924 . (0 1923 38.0 1922 .. (l) 1921 41.9 1920--. (0 1919 44.7 1918 .. (1 } (i) 1917 1916 ._- _.- to 1915 to 1914 47.2 1913 % 1912 .. 1911 to 1910..- (i) 1909_._ 51.0 1908 0) 1907 . to 1906 J to 1905 to 1904 51.0 1900. 1,909 1,502 4 1, 129 1,964 1,016 3441 49.3 59.6 71.9 (i) 1890 to 1880 79.8 i Not a census year. 2 Not including Vermont. 3 Not including foreign cotton. 4 Cotton mills only. New England Compared with Rest of United States in Cotton Spindles in Place, Spindle Activity, and Active Spindle Hours, 1880-1927 Cotton spindles in place l (thousands) Active spindles (thousands) Active spindle hours (millions) Year New England United States outside New England New England as per cent of United States New England United States outside New England New England as per cent of United States New England United States outside New England New England as per cent of United States 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918 1917 1916 1915 1914 1913 1912 1911 1910 1909 1908 1907 1906 1905 1900— 1890 1880 16, 871 17,946 18, 333 18, 576 18, 930 18, 856 18, 734 18, 543 18, 393 18, 267 18,001 17, 788 17, 526 17, 683 17, 620 17, 571 17,045 15, 981 15, 766 15, 481 15, 164 14,408 13, 816 13, 171 10, 934 8,632 19, 824 19, 640 19, 596 19, 228 18, 479 18, 089 17, 884 17, 292 17, 050 16, 674 16, 220 15, 545 15, 315 15, 061 14, 529 14, 012 13, 759 12, 948 12, 808 12, 484 11, 776 11, 404 9,856 6,293 3,450 2,021 46.0 47.7 48.3 49.1 50.6 51.0 51.2 51.7 51.9 52.3 52.6 53.4 53.4 54.0 54.8 55.6 55.3 55.2 55.2 55.4 56.3 55.8 58.4 67.7 76.0 81.0 14, 995 15, 526 15, 975 17, 066 18, 054 17, 939 18, 388 18, 287 18, 066 17, 985 17, 761 17, 474 17, 101 17, 408 17, 311 17, 140 16,511 15, 735 15, 592 15, 329 14, 913 14, 408 14, 203 13, 171 10, 934 3 8, 632 19, 414 19, 225 18, 783 18, 783 18, 206 17, 769 17, 660 17, 194 16, 865 16, 558 16, 128 15, 332 14, 864 14, 699 14, 208 13, 439 13, 012 12, 532 12, 426 12, 176 11, 463 10, 843 9,485 6,301 3,450 2,021 43.6 44.7 45.6 47.6 49.8 50.2 51.0 51.5 51.7 52. 1 52.4 53.3 53.5 54.2 54.9 56.1 56.0 55.7 55.6 55.7 56.5 57.1 60.0 67.6 76.0 81.0 32, 914 31, 718 32, 655 27, 184 39, 009 37, 034 ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) 71, 436 65, 311 61, 945 53, 091 60, 499 55, 667 ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) - ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) 31.5 32.7 34.5 33.9 39.2 39.9 ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) 1 The statistics prior to 1915 relate to year ending August 31, and those since 1915 to year ending July 31. 2 No records available prior to 1922. 3 Cotton mills only. 292 INDUSTRIAL STRUCTURE OF NEW ENGLAND CHANGES FKOM 1904 TO 1914 Changes in cotton manufacture up to the beginning of the World War were in the direction of continued expansion outside New Eng- land, although the industry made a gradual increase in this older sec- tion. In this period leadership in the coarser and cheaper grades of cloth was definitely surrendered to the South. Although many New England mills continued to make the coarser staples, fuller attention was given to the higher grades of cotton manufacture, and increasing numbers of mills were turning to the finer goods. In this respect New England was following the example set by the British cotton industry, which had made up for the earlier losses of its markets for coarser goods by specializing in the finer qualities of yarns and cloth. A factor of increasing importance to the cotton industry in this period was the use of electric power in place of steam. The place of steam had not been challenged until after 1900, but electrification of cotton mills swept forward rapidly after 1910, so that by 1923 more primary horsepower was furnished to the cotton mills of the country by electric motors than by steam engines. CHANGES SINCE 1914 The period of the World War and the years immediately following it witnessed conditions which upset the normal developments in this industry and deferred the adjustments that otherwise would have come sooner. In common with the rest of the country in all manu- facturing lines, the cotton mills of New England were stimulated by the possibilities for high war-time profits. During the war the mills were run at maximum capacity. The number of cotton mills in New England increased from 380 in 1914 to 459 in 1919, and to 510 in 1923. The number of active spindles was increased from 17,408,000 in 1914 to 18,066,000 in 1919, and to a maximum of 18,388,000 in 1921. The year 1919 found New England textile mills running at ca- pacity to fill orders placed at high war-time prices. This was fol- lowed in 1920 and 1921 by a sharp drop in prices and a curtailment of production, which affected all industries in the period of postwar deflation. A brief interval of recovery in 1922 and 1923 again brought prosperity of short duration and led to a further expansion of New England cotton manufactures, making 1923 the year of maxi- mum output, exceeding any of the war }^ears except 1919. During the period from the beginning of the war there had been little change in the conditions of production within the industry except a great rise in wage rates and a wide expansion in the use of electric power. Not until after 1923 did any general adjustment be- come apparent in the whole cotton-manufacturing industry. New forces which had been developing in the past two decades then bore upon this industry with intensity. There was a pronounced falling on in cotton manufacturing in 1924, but conditions were somewhat better in L925. The New England cotton manufacturing industry, in the period from 1023 to 1925, showed a decline in its output for the first time (aside from the postwar deflation) since its start more than a century before. TEXTILES 293 COTTON CONSUMPTION AND SPINDLE ACTIVITY As a purchaser of raw cotton New England attained its peak in the war years — 1916, 1917, and 1918 — reaching the maximum of 2,415,000 bales in 1917. There was a marked falling off in 1919, with recovery in 1920, when the amount was 2,397,000 bales. The sharp slump in 1921 reduced the New England consumption to 1,614,000 bales. This was followed by an increase in 1923 to more than 2,000,- 000 bales, and a sharp falling off again in 1924, when it was the low- est of any recorded year since 1900. Since then the consumption has shown some increase, and in 1927 it was 1,675,000 bales. Figures on the consumption of raw cotton are at best a crude indi- cator of manufacturing activity ; they are only approximate for any one year, and they do not allow for carry-overs from year to year or for partially manufactured cotton in mill stocks. Neither do they indicate at all the degree of fabrication employed in changing the raw material into the manufactured product for sale. This varies greatly with the type of fabric made, much more cotton being required to make a yard or a given unit of value of coarse, heavy fabrics than of fine, light goods, such as are produced largely by New England mills. The number of spindles in place is commonly used as an indicator of producing capacity of cotton mills. The total number in New England showed a continuous increase year by year up to 1923, when the maximum of 18,930,000 spindles was reached. The number of spindles in place declined to 16,872,000 in 1927, and to 15,463,000 spindles in 1928. These figures, however, do not show the degree of utilization of spinning equipment, since they make no allowance for inactive plants or for idle spindles in active plants. A better indicator of activity is afforded by the number of active spindles. The maximum in New England was reached in 1921, when the actives spindles numbered 18,388,000. Since 1923 the number of active spindles has shown a decline year by year, with a total number of 14,995,000 in 1927 and of 13,815,000 in 1928. But figures of active spindles make no allowance for equipment active only a portion of the time, or for its employment in overtime production. A more accurate measure of mill activity is afforded by the number of active spindle hours, which is based on the time the spindles are in operation. Figures on this basis are available for each year and each month since July, 1921. The high point in spin- dle activity in New England was reached in the calendar year 1923. From this maximum it fell off nearly 30 per cent in 1924. The next year, however, the number of spindle hours increased to within 16 per cent of the 1923 volume. In 1926 there was a reduction of 3 per cent from the preceding year, but the total activity in 1927 was slightly greater than in 1925 and higher than in any other year since 1923. CHANGES IN TOTAL ACTIVITY In value of products the high point of New England cotton manu- factures was reached in 1919, the year of war-time price inflation, when the value of products of New England cotton manufacture exceeded a billion dollars. From this peak there was a tremendous falling off in the deflation period of 1920 and 1921. A substantial 61232°— 30 20 294 INDUSTRIAL STRUCTURE OF NEW ENGLAND recovery was made in 1922 and 1923. This was followed by a con- siderable falling off again in 1924, and in 1925 the total value was about $120,000,000 below that for 1923. Comparison of changes in the value of total output for the 10-year census period from 1904 to 1914 with the 11-year period from 1914 to 1925 shows the increase in the earlier period to have been 47.2 per cent, while for the later period it amounted to 94.4 per cent. The value added by manufacture showed an increase of 48.6 per cent from 1904 to 1914, and an increase of 102.8 per cent from 1914 to 1925. These figures make no allowance for differences in dollar values. The number of New England establishments engaged in cotton manufacturing was at its peak in 1923, with 510 plants reported by the census for that year. In 1914 there were 380 establishments, which was an increase of 24 plants over the number operating in 1904 ; this increase all took place before 1910. During the war period, from 1914 to 1919, there was an increase of 79 establishments. From 1919 to 1921 the number fell off by 10. In the next two years there was an increase of 61. From 1923 to 1925 the number was reduced by 29 establishments. From 1914 to 1925 there was a net increase of 101 establishments. Total Cotton-Manufacturing Activity of New England as Compared with Rest of United States, 1880-1925 Year 1925. 1923. 1921. 1919. 1914. 1909. 1904. 1900. 1890. 1880. Establishments New England 481 510 449 459 380 380 356 364 402 439 United States outside England 1,157 1,132 1,078 1,037 948 944 798 691 503 317 Persons engaged Total New England 181, 603 215, 447 198, 682 218, 059 199, 003 192, 348 162, 647 167, 005 148, 718 United States outside England 302, 121 296, 213 241, 763 244, 814 204,908 195, 423 160, 640 140, 758 72, 867 Wage earners New England 175, 850 208, 685 192, 438 211, 118 195, 003 188, 984 159, 473 164, 944 147, 359 127, 185 United States outside England 292, 502 286, 512 233, 379 235, 734 198, 401 189, 896 156, 401 137, 917 71,517 45, 359 Salaries and wages (thousands of dol- lars) New England 186, 501 231, 645 195, 206 208, 727 95, 575 83, 562 62, 896 60, 064 49, 909 United States outside England 233, 723 143, 550 185, 300 201, 761 74, 248 63, 709 43, 548 33, 975 19, 581 Year 1926. 1923 1!)21 1910 1914 [909 1904 1900 1890 Total value of product (thousands of dollars) New p]ngland 655, 799 776, 209 594, 134 1, OH 755 337, 324 316,643 22!), 101 191,691 1X1, 112 143,363 United States outside New England J, 164,0X7 1,234,932 736, 129 1, 160, XI 1 363, 977 311,849 221,367 147,509 86, 869 48, 727 New England as per cent of United States 36.0 38. 6 44.7 47. 1 48. 1 50. 4 50.9 66. 6 67. 6 74.6 Value added by manufacture (thousands of dollars) New England 272,931 368, 796 286, X3X 425, 0XX 134, ( 124 143,609 96, 56X 18, . r »4:{ 80,01] 69, 073 United States outside New England 414,625 450, 728 311,840 456, 576 123, 154 113,874 TA, (145 (14, 106 33, 0r»x 20, s 1 1 New England as per cent of United States 39.7 44.3 47.9 48.3 52.2 55.8 55.2 60.6 70.8 76.8 U <>f Manufactures. TEXTILES 295 Changes in Cotton Manufacture Within and Outside New England 1904- 1914 and 1914-1925 Item Actual units each year 1904 1914 1925 Percentage in- crease 1904 to 1914 1914 to 1925 Number of establishments: New England United states outside New Eng- land Active spindles (number): New England United States outside New Eng- land Consumption of cotton (pounds) : New England United States outside New Eng- land Woven goods over 12 inches wide (thousands of square yards) : New England United States outside New Eng- land Value of products: New England United States outside New Eng- land Value added by manufacture: New England United States outside New Eng- land 356 798 14, 203, 000 9, 485, 000 846, 024, 000 1, 030, 413, 000 2, 606, 664 2, 503, 645 $229, 101, 000 $221, 367, 000 $90, 568, 000 $73, 645, 000 380 948 17, 408, 000 14, 699. 000 1, 041, 083, 642 1, 482, 417, 000 3, 218, 756 3, 594, 784 $337, 324, 000 $363, 977, 000 $134, 624, 000 $123, 158, 000 481 1,157 15, 975, 000 19, 057, 000 i 850, 390, 000 i 1, 224, 966, 000 2, 607, 368 5, 134, 200 $655, 799, 000 $1, 164, 087, 000 $272, 930, 000 $414, 626, 000 6.7 18.8 22.6 55.0 23.1 43.9 23.5 43.6 47.2 64.2 48.6 67.2 26.6 22.0 2 8.2 29.6 2 18.4 2 17.4 2 19.0 42.8 94.4 219. 8 102.7 236.7 ' i These figures do not include the cotton consumed by cotton small wares and cotton-lace industries. Cotton small wares for the United States consumed 21,339,000 pounds in 1925. 2 Decrease. The average number of persons engaged in New England cotton manufacturing was highest in 1919, when it was 218,059. This was nearly approached again in 1923, when the total was 215,447. This number was reduced in 1925 to 181,603. COTTON WOVEN GOODS The maximum production of cotton woven goods in New England was in 1914, when these States produced nearly 3,219,000,000 square yards of cotton cloth. The 1914 production was closely approached in 1909 and in 1923, when the totals were 3,194,000,000 and 3,144,- 000,000 yards, respectively. The marked curtailment in the years immediately following the World War was followed by a pro- nounced increase, so that the total yardage in 1923 was only about 2 per cent below the maximum of 1914. Production from 1919 to 1923 showed an increase of 343,000,000 square yards, but in consequence of price deflation the value of the woven goods pro- duced fell off $135,800,000. The 2-year period from 1923 to 1925 showed the most pronounced change in yardage, with a decline of 17 per cent. The year of maximum dollar values of woven goods was 1919, when values were greatly distorted by high war-time prices. In that year the New England product had a value approaching $700,- 000,000, which is almost three times the value of a much greater yard- 296 INDUSTRIAL STRUCTURE OF NEW ENGLAND age in 1914. The value of the 1923 production was far higher than for any other year outside the war period. The total value in L923, following the period of sharp postwar deflation, exceeded $563,000,000 and represented an increase of nearly $119,000,000 over 1921. Total Production and Value of Cotton Woven Goods in New England States, Census Years 1909-1925 Census year Thousands of square yards Value Census year Thousands of square yards Value 1925 __. -. 2, 607, 368 3, 143, 581 2, 809, 820 $459, 897, 000 563, 109, 000 444, 436, 000 1919 2, 800, 535 3, 218, 756 3, 194, 421 $698, 910, 000 1923 1914 .. 242, 821, 000 1921 1909_ 236, 904, 000 PRINCIPAL WOVEN FABRICS The importance of the principal woven fabrics, as shown by their value in 1925, was in the following order: (1) Twills and sateens, (2) tire fabrics, (3) sheetings, (4) cotton and silk mixtures, (5) shirt- ings, (6) lawns, nainsooks, cambrics, and similar muslins, (7) cotton flannel, (8) ginghams, (9) print cloth. The value of each of the first four of these exceeded $40,000,000 and for each of the others it exceeded $20,000,000. In terms of yardage the principal fabrics were in the following order of importance : (1) Twills and sateens, (2) sheetings, (3) print cloth, (4) tobacco cloth, cheesecloth, etc., (5) lawns, nainsooks, cam- brics, and similar muslins, (6) shirtings, (7) cotton flannel, (8) cot- ton and silk mixtures, (9) ginghams, (10) tire fabrics. Production of each of the first five of these exceeded 200,000,000 yards, that of the next four exceeded 100,000,000 yards each, and that of tire fabrics was nearly 91,000,000 yards. The Relative position of the important fabrics of New England manufacture in the value of the whole national output is shown in the following percentages contributed by New England: (1) Cot- ton and silk mixtures, 79.3 per cent; (2) lawns, nainsooks, etc., 73.6 per cent; (3) tobacco cloth, cheesecloth, etc., 59 per cent; (4) twills and sateens, 52.7 per cent; (5) bedspreads and quilts, 51.3 per cent. New England manufactures thus contributed over one-half of the total national value in each of these fabrics. Between 40 and 50 per cent of the total national value was contributed by New England in cotton flannels (48.4 per cent), shirtings (45.3 per cent), and ginghams (43.4 per cent). Woven fabrics in which the value of the New England production was over- shadowed by production in other parts of the United States were sheetings (23.7 per cent), print cloth (21.8 per cent), plush, velvets, etc. ( 15.7 per cent), denims (13.G per cent), and towels, toweling, etc. (5.7 per cent). TEXTILES 297 Cotton Woven Fabrics Produced in New England in 1925 Kind of fabric Value of products Millions of dollars Per cent of United States total Quantity produced Square yards Per cent of United States total Rank in yardage produced Twills and sateens Tire fabrics Sheetings Clot h of cotton or other vegetable fiber and silk Shirtings Lawns, nainsooks, cambrics, and similar muslins Cotton flannel __ Ginghams Print cloth Tobacco cloth, cheesecloth, bunting, and bandage cloth Bedspreads and quilts Plushes, velvets, etc Denims __ Table damask __. Tickings Towels and toweling , Drills , Cottonades. Undesignated w r oven fabrics (over 12 inches wide). , Total woven goods 44.3 43.4 42.7 41.0 34.3 31.9 25.9 25.0 21.4 9.6 8.6 6.4 6.3 5.3 2.5 2.2 1.6 .6 106.9 52.7 41.1 23.7 79.3 45.3 73.6 48.4 43.4 21.8 59.0 51.3 15.7 13.6 42.5 23.8 5.7 3.8 7.8 43.6 274, 709, 000 90, 937, 000 270, 166, 000 147, 367, 000 156, 852, 000 215, 967, 000 156, 002, 000 145, 493, 000 257, 097, 000 245, 831, 000 24, 983, 000 7, 954, 000 22, 950, 000 24, 576, 0C0 10, 826, 000 8, 443, 000 8, 385, 000 2, 248, 000 536, 944, 000 51.6 37.6 16.5 83.2 34.4 66.2 45.8 40.8 22.0 54.4 47.5 23.8 12.7 46.0 22.4 6.7 2.9 7.7 47.7 1 10 2 5 7 9 3 4 12 11 14 13 15 16 17 18 459.9 36.9 2, 607, 368, 090 33.7 CHANGES IN INDIVIDUAL WOVEN FABRICS, 1921 TO 1925 Since the period from 1921 to 1925 includes the years of greatest readjustment in New England cotton manufacture, changes in types of product during these years has a great deal of significance. In this 5-year period the total annual New England production of cotton woven cloth showed a reduction of 7.2 per cent in yardage but an increase in value of output of 3.5 per cent. The produc- tion for the entire United States for the same period showed an increase in yardage of 15.5 per cent and an increase in value of 30.1 per cent. From 1923 to 1925 the total yardage produced in New England fell off 17.1 per cent, and the value of the product decreased 18.3 per cent; during the same time there was a decline of 6.3 per cent in the total yardage produced in the United States and of 11 per cent in the total value. In New England the fabrics which showed the most conspicuous increases in value from 1921 to 1925 were cotton and silk mixtures, table damasks and plushes, twills and sateens, and a large group of undesignated fabrics. Cotton and silk mixtures, with a product valued in 1925 at $41,000,000, showed an increase of 227 per cent in value as compared with 1921. Twills and sateens, with a prod- uct in 1925 valued at more than $44,000,000, increased 32 per cent in value; cotton flannels, with a product in 1925 worth nearly $26,000,000, showed an increase in value of nearly 31 per cent, as compared with the output of 1921. Of the fabrics that were secondary in value in 1925, tobacco cloth and cheesecloth increased 48 per cent, while plushes, velvets, etc., more than doubled. Among fabrics of minor value the increase in table damask stands out prominently, the figures showing about 150 per cent increase over its 1921 value and more than 200 per cent in- crease in yardage, in comparison with relatively slight increases for the United States as a whole. Shirtings, the 1925 value of which in New England was upward of $34,000,000, showed an increase of 298 INDUSTRIAL STRUCTURE OF NEW ENGLAND approximately 6 per cent, but this was overshadowed by a national increase of over 46 per cent. The most conspicuous decrease in values was shown by ginghams. The 1925 product, valued at nearly $25,000,000, showed a falling off of 53 per cent from the value of the production in 1923. Lawns, nain- sooks, and similar fabrics, with a product valued in 1925 at nearly $32,000,000, showed a falling off of 37 per cent, in comparison with a reduction of 26 per cent for the country as a whole. A pronounced falling off was shown also in tire fabrics, whose 1925 value of $43,400,000 shows a reduction of over 30 per cent from that of 1921, in contrast with an increase of 4 per cent for the country as a whole. Print cloth, with a value in 1925 upward of $21,000,000, shows a decline in New England of 23 per cent, in contrast with a national increase of 20 per cent. Of the fabrics of lesser value in New England, toweling declined more than 28 per cent and drills over 22 per cent, each of these being in contrast with substantial increases in value for the national pro- duction. The total value of denims, sheetings, and tickings each de- clined somewhat less than 10 per cent, while for the country as a whole the value of denims increased 50 per cent, that of sheetings 14 per cent, and of tickings 12 per cent. On the other hand, the large group of undesignated woven fabrics, amounting to nearly $107,000,- 000 in 1925, showed an increase of value in New England of 42 per cent, as compared with 1921, and in the country as a whole an increase of 57 per cent. The following table shows the changes in individual fabrics, both in yardage produced and in value of product, for the period from 1921 to 1925, and also for the shorter period from 1923 to 1925, the change in each case being given as a percentage of the earlier year. Changes in Yardage and Value of Various Cotton-Woven Fabrics Produced in New England as Compared with the Entire United States, 1923-1925 and 1921-1925 Percentage change l ir age produced yard- Percentage change i in of product value New Eng- land Kind of fabrics 1923-1925 1921- -1925 1923- -1925 1921- -1925 value in 1925 New Eng- land United States New Eng- land United States New Eng- land United States New Eng- land United States (mil- lions of dol- lars) Twills and sateens -4.8 -7.0 -17.9 12.2 26.6 -19.4 -17.5 -41.7 -52.8 -3.5 6.2 1.2 -34.1 204.3 -16. 1 31.5 35.2 28.8 -3.7 8.9 6.9 -3.4 17.4 33.5 -11.2 -10.7 -37.6 -26.1 12.3 47.5 20.8 -20.0 30.7 9.6 3.2 5.7 39.0 6 17.2 51.2 -23.4 330.9 -6.5 -31.2 4.4 -51.2 -40.9 60.3 25.6 100.9 -24.9 212.2 "-52.T -56.1 "~4.~9~ 38.8 153.1 2.3 384.4 51.4 -16.9 15.5 -33. " .8 64.7 65.4 190.9 7.4 24.0 3.9 5.5 49.2 26.8 26.0 -10.2 -20.2 -14.9 -10.2 11.9 -31.2 -25.5 -47.7 -54.6 -32.7 -3.7 -8.3 -39.6 125.5 -20.0 70.9 -33. 7 -37. 6 4.2 -8.1 - .4 -13.4 .7 4.7 -24.4 -23.0 -42.2 -31.7 -19.1 23.3 14.2 -24.4 14.7 -10.0 4.0 -9.4 28.2 3.5 32.4 -30.5 -6.9 227.5 5.8 -36.8 30.8 -53.1 -23.4 47.8 18.1 106.3 -8.8 149.7 ~-28.~5~ -22.4 "~42.~3~ 62.3 3.9 14.0 265.0 46.5 25.8 42.2 -34.5 20.0 62.3 51.8 181.7 50.2 15.7 12.1 22.5 92.4 35.3 57.0 44.3 Tire fabrics 43.4 Sheetings 42.6 Cotton and silk mixtures Shirtings 41.0 34.3 Lawns, nainsooks, etc Cotton flannel 31.9 25.9 Ginghams 24.9 Print cloth __ 21.4 Tobacco cloth, cheesecloth, etc . 9.6 Bedspreads, etc 8.6 Plushes, etc... 6.4 Denims 6.2 Table damasks 5.3 Tickings 2.4 Towels, etc 2.2 Drills 1.6 Cottonades .6 Undesignated ,. 106.8 All woven cloth -17.1 -6.3 -7.2 15.5 -18.3 -11.0 3.5 30.1 459.8 1 Percentages are based on data for the first year mentioned in each column. Decreases are indicated by minus sign; other percentages indicate gains TEXTILES 299 USE OF RAYON IN NEW ENGLAND TEXTILE INDUSTRIES The development of rayon and its use in the textile industries constitute one of the marvels of the present decade. While rayon is a fiber distinct from cotton, wool, or silk, it is used principally in con- junction with these other fibers, although recently fabrics made wholly of rayon have become prominent, especially in knitted wear. Rayon is not to be considered a competitor of cotton-mill products, because this new fiber simply replaces some of the cotton as raw material in the cotton mills. New England textile manufacturers have shown a good deal of enterprise in the employment of rayon. The greater portion of its consumption in New England is in conjunction with cotton in making fine goods and novelty patterns. From reliable sources it is estimated that the country's cotton mills during 1927 used about 24 per cent of all the rayon consumed in the United States, and that New Eng- land mills used approximately 60 per cent of the rayon consumed by all the cotton mills of the country. Over half of the New England rayon consumption is accounted for by the cotton mills. Manufactures of broad silks come next in importance, and plants making knitted hosiery and underwear con- sumed slightly less than the silk establishments. One of the recent great advances in the use of rayon is in the manufacture of various types of pile fabrics, including velvets, transparent velvets, and plushes. Many of the mills which manufacture these fabrics are located in New England. The apportionment of the total rayon consumption of New England in 1928 among the various textile industries is estimated to be approximately as follows : Per cent of total New England consumption Cotton mills 53 Broad silks 14 Narrow fabrics 8 Hosiery 7 Underwear 6 Transparent velvets 5 Miscellaneous . 7 The estimated volume of rayon consumption in each State, its proportion of the New England total, and New England's share in the national consumption in 1927 and in 1928, are presented in the following table. These figures should be considered only as careful estimates, as they are based upon incomplete records; but they are believed to be approximately correct. During 1928 the New Bedford textile strike greatly affected rayon consumption within New Eng- land, particularly in Massachusetts. No doubt this situation is prin- cipally responsible for the decrease in New England rayon consump- tion as compared with 1927. Under normal conditions the rayon consumption. in New England in 1928 would probably have shown an increase, although it is believed that the increase would have been slightly below the increase in the country as a whole, which was approximately 10 per cent. 300 INDUSTRIAL STRUCTURE OF NEW ENGLAND Estimated Consumption of Rayon by Individual New England States in 1927 and 1928 Consumption in 1927 Consumption in 1928 State Pounds Per cent of New England total Pounds Per cent of New England total Massachusetts _. 9, 029, 000 4, 936, 000 3, 486, 000 1, 136, 000 999, 000 7,000 46.1 25.2 17.8 5.8 5.1 7, 549, 000 4, 873, 000 3, 387, 000 1, 104, 000 971, 000 8,000 42 1 Rhode Island.. - __ 27.2 Connecticut.. 18.9 Maine.- . - - ._ 6.1 New Hampshire - _. 5.4 Vermont - - Total 19, 593, 000 99, 254, 000 100. 17, 892, 000 110, 568, 000 100.0 United States total _ New England as per cent of United States. . . 19.7 16.1 Although no exact figures are obtainable for other years, the fol- lowing estimates from a reliable authority, based on consumption in 1927 and 1928, give an approximate picture of the increase in con- sumption of rayon from 1919 to 1926, both in New England and in the United States as a whole. The increase in its consumption in textile industries outside of cotton manufacture was probably more gradual in New England during this period than in some other sec- tions of the country, especially where the knit-underwear industry is important. In this line there has been a pronounced increase in the consumption of rayon. Estimated Annual Consumption of Rayon in New England and in the United States, 1919-1926 Thousands of pounds] Year New England United States Year New England United States 1926 11, 586 10, 598 7,197 7,011 64, 730 59,210 40, 206 39, 167 1922 4,742 3,342 2,166 1,670 26, 494 1925 1921 18, 670 1924 1920 12, 100 1923 1919 9,330 SOURCES OF RAYON PRODUCTION In the production of rayon New England has been recently assum- ing some importance, with three concerns actually producing rayon in 1928, and with an output estimated at 2,000,000 pounds — approxi- mately 2 per cent of the total United States production. Pros- pective increases indicate a probable doubling of this production in New England in the near future, with an increase in the num- ber of New England producers of rayon to five concerns. The production of rayon in the United States has had a remark- able growth in recent years. In 1927 the United States produced 77 per cent of the rayon consumed in this country, but in 1928 over 90 per cent of I he total United States consumption was of domestic production, with a proportionate falling off in imports. While in TEXTILES 301 1928 the national consumption increased 11.4 per cent over that of 1927, there was an increase of 29.2 per cent in national production. MARKETING AGENCIES FOR COTTON MANUFACTURES The system for marketing cotton-mill products differs from that for some other commodities because the greater portion of the output must pass through further processes of manufacture and through intermediate handlers. Only a small part enters into final consump- tion in the form in which it leaves the mill. The unfinished gray goods generally require further processing, which includes bleaching, mercerizing, dyeing, printing, and various finishing processes that are determined by the desired pattern. According to a study x by the Harvard Bureau of Business Re- search covering the billings in 1924 by manufacturers of about two- fifths of the national production of yarn-dyed and gray goods, 57 per cent of their output was subjected to further manufacturing processes after leaving the mill, while 43 per cent of the output was marketed directly to cutters-up and other industrial manufacturers. Considerably more than half their total yardage tKus required fur- ther finishing. The study showed that about 34 per cent of the entire mill output was sold to converters and that 23 per cent was processed for the mills' own account. Three distinct types of distribution agencies intervene between the cotton manufacturer and the final consumer. The first of these has to do with disposing of the unfinished goods as they come from the mill. The second type undertakes the necessary steps for convert- ing these goods into the kind of finished product desired by the market. The third makes distribution of the finished goods to the final consumers or to manufacturers of wearing apparel and makers of other products who use cotton fabrics. While there is some degree of overlap in the functions of these three types of agencies, the general market is organized quite distinctly on this basis. In New England the cotton-mill organization and personnel are generally quite distinct and independent from the organization for marketing the output. The mill treasurer is the principal business executive in the operation of the mill. He conducts the financial activities required in operation of the plant, buys the raw materials, and determines the form of manufacture. The physical operation of the mill is in the hands of the mill superintendent or manager, who conducts the plant under the direction of the treasurer. Dis- posal of the manufactured product is generally under control distinct from that of the plant management. THE SELLING AGENT OR COMMISSION HOUSE Sale of the mill product is made through a separate marketing agency known in the trade as the selling agent or commission house. This agency is, in fact, the sales department of the mill. It devotes its whole attention to selling, and generally has exclusive control of marketing the product. It keeps in touch with market conditions and carries on advertising and sales promotion for the mill. In 1 Distribution of Textiles, Bulletin No. 56. Cambridge Mass., 1926. 302 INDUSTRIAL STRUCTURE OF NEW ENGLAND earlier years the prevailing method of marketing cotton-mill products was by consignment to a central market, and sale at auction. The present system of marketing through an exclusive selling house is the outgrowth of the earlier form, wherein a single agency assumes con- tinuous charge of all sales. Most of the large commission houses have their headquarters in New York City, which is the principal market for direct mill sales. Many of these houses have their correspondents in the important textile manufacturing centers. In addition to its primary service of finding customers for the mill product, the selling house performs an important financing function by assuming the credit risk on sales and by making money advances to the mill for stocks manufactured in anticipation of orders. Com- petition among commission houses for the more desirable mill ac- counts in the past has led many of them to become financially inter- ested in the mills which they represent. THE CONVERTER Despite the apparent meaning of the name, the converter is a mer- chant rather than a manufacturer. This agency has a highly special- ized function in the marketing of cotton goods and plays an ex- tremely important part in their sale. For the last 50 years the con- verters have been a major factor both in the manufacture and in the marketing of cotton textiles. The converter purchases the gray cloth or yarn-dyed fabrics as they come from the mills, and arranges to have them put through the further processes necessary to finish them for the market. He thus undertakes most of the burden and the risk in selecting the style and finish of fabrics for the final consumer. The converter is the marketing agency that stands between the selling house of the mill, on the one hand, and the distributors or users of finished fabrics, on the other. Most of the converters arrange to have their goods processed and finished, under contract, by plants which specialize in the kind of process that is required; but some of the larger converters operate their own finishing plants. In recent years there has been a growing tendency among the larger cotton manufacturers to take over the functions of the converter and to have their goods finished for the final market on their own account, either in their own plants or in outside finishing plants. FINAL, DISTRIBUTION There are several kinds of outlets for finished cotton fabrics. On the one hand are the garment manufacturers and other makers of apparel, draperies, and other products, who purchase the finished goods in large lots and make them up into articles for direct con- sumption. This outlet is designated as the cutting-up trade. There is a similar type of" outlet among the manufacturers in other indus- tries, who use col ton goods in connection with the manufacture of products such as shoe linings, tire fabrics, and numerous other arti- cles. These may be designated as industrial consumers. In addi- tion to these are the various wholesaling and retailing agencies which handle piece goods. TEXTILES 303 According to the Harvard study referred to on page 301, the indus- trial users and the cutting-up trade together absorbed more than half of the total billings of cotton piece goods by representative mills of the country as a whole, while the retail trade accounted for some- what more than one-third. The relative importance of individual outlets was indicated in that study by the following percentages of total billings: Retailers, 36 per cent; industrial users, 30 per cent; cutters-up, 26 per cent; exporters, 6 per cent; institutional outlets, such as hospitals, 2 per cent. Of the sales made directly from the mills those to cutters-up and industrial users comprised slightly less than 25 per cent of their total billings, and direct sales to wholesalers, retailers, and exporters com- prised 20 per cent of the total. In this latter portion direct sales to wholesalers comprised approximately 14 per cent and only 1 per cent was made direct to retailers, while 5 per cent was to exporters. . Of the goods that were finished for the manufacturers' account before sale, however, the portion to wholesalers was considerably greater. Here the proportions to different outlets were as follows: Wholesal- ers, 46 per cent; cutters-up and other manufacturers, 38 per cent; hospitals and unclassified customers, 7 per cent; retailers, 4 per cent; exporters, 5 per cent. In the past wholesalers have been an important factor in insuring the regularity of mill operation through the placing of advance orders for merchandise, which ranged all the way from one- fourth to three-fourths of their total purchases. There are two main groups of these wholesalers, the first comprising the large wholesale mer- chants which do a national business, while the second group is made up of firms which serve the retail trade in their local territory. In the distribution of piece goods to the retail trade the prevailing channel has been through the wholesale houses, with only a small amount from converters and a very slight portion directly from the mill. The Harvard study of sources of purchase by retailers found that 89 per cent of the total purchases by retailers were made from wholesale distributors. Their purchases of finished goods from con- verters and manufacturers comprised 8 per cent; and purchases of gray goods and yarn-dyed fabrics directly from the manufacturers were only 3 per cent. The large metropolitan department stores, which are a very impor- tant outlet for piece goods, usually place their initial orders with converters and manufacturers at the beginning of each season, and place their later fill-in orders with local wholesalers. Purchases by the large mail-order houses are made from the converters or directly from the mills. The same is true of purchases of piece goods by chain-store organizations. Small department stores and general merchandise stores purchase cotton piece goods principally through wholesale dealers. IMPORTANCE OF VARIOUS OUTLETS There is a considerable variation in the importance of outlets for different kinds of fabrics. The Harvard study found that in the marketing of prints, voiles, marquisettes, lawns, shirtings, twills, and sateens, the converter was the prevailing outlet. In these fabrics four-fifths of the manufacturers' billings were made to converters; 304 INDUSTRIAL STRUCTURE OF NEW ENGLAND one-tenth went to cutters-up; and only one-tenth to industrial manu- facturers, wholesalers, and exporters together. With materials for fine and fancy mixed goods, also, converters received four-fifths of the total billings, and wholesale dealers one-fifth. The bulk of the billings of pile fabrics was likewise to converters. In some other fabrics, however, the principal outlet for the manu- facturer was direct to wholesalers. Most of the billings of ginghams went to this outlet, as well as appreciable billings of flannels; of drills, cottonades, and cotton suitings, a considerable portion of the billings was made to exporters; but for drills, denims, flannels, and cot- tonades, the principal outlet was to the cutting-up trade. In domestics, such as sheetings, pillow casings, bedspreads, and table damask, no single outlet predominated ; of the total billings of these fabrics one-third was made to converters and one-third to whole- salers. Of the rest one-fifth was billed to other manufacturers, one- tenth to exporters, and the remainder to cutters-up and retailers. CHANGES IN DISTRIBUTION The changes in the distribution of cotton goods in the last few years are largely the result of (1) changes from buying for stock to small-order buying for current requirements; (2) changes from piece goods to ready-to-wear garments; (3) greatly increased importance of the style element. A period of small-scale buying, originating generally with retailers during the crisis of 1920, was inspired by the attitude of caution in both the wholesale and retail trade, arising from the shrinkage of in- ventory values in a period of rapidly declining prices. Continuous fluctuations, both in the price of raw cotton and in that of cotton cloth, have encouraged the continuance of this cautious attitude. It has been strengthened by the facilitation of quick deliveries, resulting from improvements in transportation facilities. A general trend toward smaller orders was noticeable, however, before 1917, and early periods in cotton manufacture have witnessed major fluctuations in size of orders. Systematic attention on the part of retailers to increase the rate of merchandise stock-turn, par- ticularly in department stores, has made them active in carefully controlling purchases and inventories. According to the Harvard study previously mentioned, orders received by the cotton mills and selling agents were distinctly smaller in 1924 and 1925 than from 1921 to 1923. The orders from wholesalers showed less variation than those from cutter-up and mail-order houses. The small-scale placing of orders has been accompanied by a great change among consumers from cotton piece goods to ready-to-wear apparel. Wholesalers are generally agreed that the sale of piece goods in the smaller trading centers, has suffered in consequence of the good roads and the general use of automobiles in the rural dis- tricts. This has generally resulted in concentration of the piece- goods trade in the larger centers. The decline in sales of piece goods make- the function of the wholesaler' Jess essential and, in conse- quence, he has become increasingly a service agency for taking small fill-m orders. Records of H) representative department stores located in the East, South, and Middle West, for a period from 1911 to 1925, show that TEXTILES 305 the change from piece goods to ready-to-wear clothing prevails in the large cities as well as in the small centers. Relative sales of cotton piece goods showed a continuous and pronounced increase from 1913 up to 1920, and a general decline from 1920 to 1925. Ready-to-wear goods, on the other hand, showed a continuous advance after 1914, with the exception of 1921 and 1922. The advance in sales of ready- to-wear clothing was greater than that of cotton piece goods for all but two years of the whole period, as is shown in the following table. Relative Sales (by Value) of Cotton Piece Goods and Ready-to- Wear Goods by 10 Department Stores in the East, South, and Middle West, 1911-1925 [Index number, 1913=100] Year Cotton piece goods Ready- to-wear clothing Year Cotton piece goods Ready- to-wear clothing 1911 90 95 100 95 90 100 110 135 85 95 100 100 120 140 145 145 1919 195 250 210 180 200 185 155 210 1912 . 1920 215 1913 .. 1921 200 1914 1922 205 1915 .. 1923 220 1916 ..._ 1924 215 1917 1925 225 1918 Source : Distribution of Textiles. 56. 1926. Harvard Bureau of Business Research, Bulletin No. Superimposed on the two factors of small-scale buying and change to ready-to-wear goods, there has been a third vital factor — that aris- ing from the increased rapidity and intensity of style fluctuations. This is shown by the decline in the sale of certain standard fabrics, such as white goods and wash goods generally, and by the great in- crease in number of designs and patterns of goods offered for sale. These style changes have brought about a merchandising problem of great importance to the cotton manufacturer. Conservatism in buying policies and the increased frequency of purchases, as a result of rapidly changing styles, have resulted in smaller average stocks of individual patterns by department stores and other retailers, which has meant smaller purchases of each item The problem of small orders for quick delivery has meant for the manufacturer an increased risk of loss through depression of mer- chandise, resulting from a drop of prices or change of style, in case he should undertake to keep his plant operating at full capacity by man- ufacturing for stock. The only alternative for the manufacturer has been a radical ad- justment in his scale of plant operation. These changes in buying policies have thus been a serious burden to the manufacturer, without compensating advantages. The process of readjustment to these new conditions has now been on its way for some time, but it requires time to bring it to completion. The factors are beyond the control of any one agency in the manufacture and distribution of cotton goods; they present a mutual problem whose solution depends upon the re- adjustment of manufacturing and marketing methods to meet these new merchandising conditions. 306 INDUSTRIAL STRUCTURE OF NEW ENGLAND NEW FACTORS IN PRESENT SITUATION While there have been no radical changes in the processes of cotton manufacture in recent years (except the rise and development of rayon) a number of new elements have entered into the situation, which confront the New England manufacturers with special prob- lems. Some of these problems arise from the excessive competition that has grown up in this whole industry as a consequence of its capacity to produce beyond the consumption requirements of the pres- ent market. This gives a competitive advantage to manufacturers who can produce most cheaply and efficiently — in other words, to plants having the lowest cost of production. This must take into ac- count the various factors which enter into the cost of making cotton goods. COMPETITION The intense competition in cotton goods during the last few years has put every mill to a severe test of its ability to meet present condi- tions in production and marketing. This has been true not only in New England but in the cotton-producing States of the South. It has been even more drastic in the British cotton industry than in the United States. Some New England mills have been able to hold on under adverse conditions only because of accumulated surpluses from past operations. It is obvious that continuance at. a loss under these conditions, even though possible for a time, is an uneconomic pro- ceeding. During this period of adjustment many New England spindles and looms have gone out of production, some of them temporarily, and many of them permanently. The field of activities has become con- centrated in a smaller number of mills favorably situated. The conditions of the last few years are serving to redistribute the industry and to concentrate it in mills that have stood the test of competitive ability. In general, the mills which have fared best are (a) those favorably situated in respect to power, either from local water power, purchased electric power, or cheap tidewater coal; (b) those with well-arranged plants and the most efficient equipment; (c) those under the most intelligent and most skillful management; (d) those which have given special study and attention to the market for their product. The difficulty of ascertaining exact production costs, with all the variable factors that enter into the manufacture of cotton goods, has been a handicap to the industry. It has undoubtedly been true that some of the older mills with partially obsolete equipment or with unfavorable location in respect to power, transportation, and working conditions, could not be operated profitably under stiff competition. Many favorably situated New England mills, however, have con- tinued to compete successfully with other sections, particularly in the making of the fine goods for which New England mills have built up a reputation. Numerous mills have demonstrated their ability to operate profitably even under the adverse conditions of the last few year's. In contrast to relatively slight changes in the factors of produc- tion, pronounced changes in marketing and distribution of the prod- TEXTILES 307 uct of cotton mills have forced special emphasis upon market organi- zation. The most radical changes are in the manner of distributing goods. Along with drastic curtailment in the consumption of cotton fabrics, there have come revolutionary changes in the types of cotton fabrics that are wanted by consumers. With the strong buyers' market that has prevailed in the last few years, the advantage has lain with the manufacturers who catered to that demand. CHANGES IN DEMAND In place of the staple cotton fabrics upon which New England cotton mills built their fortunes, the market has turned largely to novelty goods and specialties, in which style, beauty, and design are the primary requisites, rather than durability and quality. The great change in types of fabrics consumed is exemplified in the extensive use of silk fabrics and silk mixtures, and in the growth of rayon manufacture. These new materials and new types of fabrics have in large measure supplanted the old staple goods. The increased importance of style in the selling of cotton goods makes it necessary that the manufacturer be able to adapt his proc- esses quickly to changes of fabric. New patterns must be made and distributed in as brief a time as possible, for change is the very essence of style; hence, the time from the creation of a pattern to its offering on the final market must be reduced to a minimum. The mill must, therefore, be in instant readiness to make the necessary changes required for its manufacture. Moreover, the sales organiza- tion must keep in frequent touch with its customers, and it finds the former seasonal or semiannual trips to call upon the trade quite inadequate. CHANGES IN DISTRIBUTION In consequence of the rapid changes in style, and, in particu- lar, because of the instability of prices in the last few years, great changes have taken place in distribution methods. Small-order buy- ing of manufactured goods has taken the place of the seasonal pur- chases which were the prevailing practice among distributors in former years. This has worked against the planning and operating of plants for continuous manufacture of standard lines for stock, which has been the basis of low-cost quantity production. When the consumption was prevailingly one of staple goods, manufacturers could make up large stocks of standard gray goods in- anticipation of later orders. They were thus able to operate their plants continuously on a quan- tity production basis, without being disturbed by prospective changes in the type of goods required by the market. Likewise these gray goods could be finished for stocK in large quantities in anticipation of later demand. CHANGES IN OUTLETS Besides these changes in conditions of distribution, there have been pronounced changes in the outlets through which cotton goods are distributed. In earlier years these goods found a market mainly for sale as piece goods through the wholesale and retail trade. The pro- 308 INDUSTRIAL STRUCTURE OF NEW ENGLAND nounced change in the market from piece goods to ready-to-wear garments has meant that an increasing volume of the output of the mills goes to garment manufacturers and others in the cutting- up trade for further manufacture into ready-made apparel, while a diminishing amount is sold through wholesale and retail channels as piece goods. This extends even to such articles as sheetings and toweling, which in many instances are now made up at the mill into sheets and pillow cases or towels, ready for the final user — a mill practice which was quite unheard of until the last few years. The so-called hand-to-mouth buying, which has beeti attributed to postwar influences, but which actually was in progress before the war began, is a result partly of the rapid changes in demand arising from changes in styles, but it exists largely because of the instability of prices. In a prospective falling market the foresighted merchant finds it a sound business policy to make his purchases at frequent intervals in order to avoid the possibility of stocking up with goods at prices higher than those to be realized later. In this the manu- facturer whose operations are scaled for quantity production finds a serious handicap. Many business men are of the opinion that such small-scale distribution is here to stay, while others hold it to be a passing practice that will disappear as distribution conditions become more stabilized. Whichever view may be the right one, it is a factor of serious consequence to manufacturers under present conditions. CROSS-SECTION OF NEW ENGLAND COTTON INDUSTRY The following summary of experiences by a number of New England cotton manufacturers during the past few years of ad- justment is presented as the result of replies to special inquiries by the Department of Commerce, with the cooperation of the New England Council. These inquiries were sent to every manufacturer for the purpose of obtaining first-hand information regarding the conditions of production and marketing prevailing in the cotton- goods industry. In response to these inquiries, detailed state- ments were obtained from some 118 New England manufacturers of cotton woven goods. Ninety-five of these replies contained figures of sales and employment from 1921 to 1925. The aggregate sales of these 95 concerns in 1925 were $283,000,000 and the total number of persons employed was approximately 67,000. The sales thus reported represent 51 per cent of the total value of cotton woven goods produced by all New England manufacturers as reported in the 11)25 census and give a very good cross-section of the manufac- ture of cotton woven goods in New England during that period. The reports from these companies cover a wide variety of fabrics, in which the finer types of goods predominated. One-quarter of the replies designated the product simply as cotton cloth and yarn, or gray piece goods; the other's indicated a great number of specialty fabrics. The range of fabrics covered practically all the types men- tioned in the foregoing discussion. In the total number of 118 con- cerns, 71 indicated (lie concentration of their efforts upon a single type of fabric, and IT reported the manufacture of multiple types or of supplementary goods in addition to the specified main product. TEXTILES 309 SIZE OF ESTABLISHMENTS The average of sales in 1925 for the 95 plants giving figures was $2,980,000. Fifty-three of these reported sales between $1,000,000 and $5,000,000; 38 companies had sales ranging between $100,000 and $1,000,000, and 15 of these exceeded $500,000. There were 11 companies which reported individual sales in excess of $5,000,000 each ; 5 of these exceeded $10,000,000 each, running' up to a maximum of nearly $50,000,000. These 11 large concerns accounted for over one-half of the total sales reported by the 95 companies. The average number of employees per plant for these 95 concerns was approximately 700 persons. There were 33 concerns whose aver- age emplojmient through the year ranged from 100 to 500 persons; there were also 18 companies employing fewer than 100 persons each. Employment of 500 to 1,000 workers was reported in 27 of the replies. There w T ere 17 of the largest concerns each of which had over 1,000 employees, and these 17 companies account for 57 per cent of the total employment reported by the whole 95. The prevalence of large-scale operations in the manufacture of cotton woven goods is very evident from these replies. AGE AND MANAGEMENT OF PLANTS Of 111 replies regarding the date of establishment, there were 45 which indicated that their plants had been in operation from 50 up to 100 years; and there were 8 companies which reported continuous operation for more than a century. Four of the five largest estab- lishments, each of which exceeded $10,000,000 in 1925 sales, had been in continuous operation upward of 50 years. There were 41 companies whose plants had been in operation between 10 and 50 years. In addition to the older establishments there were 17 con- cerns of recent origin, having been in operation not more than 10 years. Of 107 concerns stating the length of time the plants had been under present management there were 51 which reported an un- changed management for periods varying from 10 up to 50 years, and 6 other companies whose management had been unchanged for more than half a century. In contrast with these it is significant to note that 50 concerns, nearly one-half of the number report- ing, stated that the management or control had been changed within the last 10 years; 17 of these had changed management be- tween 5 and 10 years ago, and 33 had undergone a change within the last 5 years. A very considerable degree of change in the control of individual establishments is thus indicated. There were 27 concerns which reported the operation of branches in addition to their main plant. Eighteen of these had branches in New England, and 9 others had branches in the Southern States. Of the concerns with New England branches 1 company had 7, an- other had 5 branches, 1 had 4, 1 had 3 ; 4 other concerns reported 2 branches each, and there were 10 other companies, each of which reported 1 branch. All these New England branches had been es- tablished before the World War and most of them had been under unchanged management for many years. Of the 9 New England 61232°— 30 21 310 INDUSTRIAL STRUCTURE OF NEW ENGLAND companies which reported branches in the Southern States, there were 2 concerns each of which had 4 branch plants in the South, and 7 other New England companies with 1 southern branch each. These companies with branches in the South had been under their present New England management for a period ranging from 3 up to 21 years. Only 2 of the southern branches had been estab- lished prior to 1914 ; each of the others was established since 1923. FACTORS INFLUENCING LOCATION In order to find out the manufacturers' chief economic reasons for originally locating or for continuing in New England each one was asked to state the reasons which he regarded as most important. Many of the mills have been established so long that the present owners can not give the reasons which prompted their original loca- tion. Of those which stated definite reasons, nearness to market was emphasized in 29 replies and labor conditions in 28. Besides these two dominant reasons there were 18 replies which mentioned trans- portation facilities, 16 water power, and 15 which gave banking facilities as important reasons. PLANT ACTIVITY The extent of physical expansion in the New England cotton- goods industry in recent years is indicated to some degree by the pro- portion of the mills which have made additions to their total plant capacity since 1921. Increases in plant capacity were reported by 15 mills. These increases varied from slight additions in several cases to a doubling of capacity in two or three instances. Most of these increases took place in 1922-23, although a few were reported in 1924-25. Without exception, these reporting additions to plant ca- pacity were manufacturers of textile specialties, and none of them were makers of single staple fabrics. • The degree to which the available capacity has been utilized is indicated by the ratio of the output in 1925 to the maximum possible capacity in that year. Ninety mills indicated this ratio in terms of their 1925 production ; 49 of these stated that they were operating at 75 per cent or more of the maximum capacity, and 6 of these were at full capacity. Of the others there were 29 mills reporting opera- tions from 50 per cent to 75 per cent of their maximum; and 12 were operating at less than one-half of capacity. The mills that had enlarged their physical capacity have apparently justified the in- crease by higher ratio of utilization than those that made no additions. Naturally the concerns whose activities were at a high ratio of capacity were the ones showing increases in total sales. Yet among 21 mills whose individual sales decreased continuously from 1923 to 1925 there were 13 that reported operations in 1925 at 75 per cent or more of their maximum capacity. It is significant also that in the 32 mills reporting individual increases in sales in 1924-25, but a reduction below their 1923 sales totals, there were only 14 which reported operations in 1925 at 75 per cent or upward; 13 of them were operating in 1925 from 50 per cent to 75 per cent of their pos- sible output, and 5 of these Imd less than 50 per cent. For all the TEXTILES 311 90 mills the output in 1925, in terms of a maximum possible output, was 74.1 per cent, this figure representing a weighted average of the total aggregate sales of the whole group. TREND OF SALES OF INDIVIDUAL COMPANIES Practically all the reporting companies showed increases in individual sales in 1928 as compared with 1921, and most of them had higher total sales in 1925 than in 1921. Of 82 mills which sub- mitted continuous sales figures from 1923 to 1925 there were 27 whose sales volume in 1925 exceeded that of 1923. Eighteen of these fell back in 1924, while 9 of them showed a continuous increase. There were 36 other mills whose 1925 sales volume was greater than that of 1924, but less than that of 1923. Thus 63 of these 82 mills showed an advance in their individual sales of 1925 over those for 1924. There were 19 other mills, however, whose individual sales volume increased through both 1924 and 1925. There was apparently no single factor to account for these indi- vidual differences in sales trends. No clear-cut distinctions are shown as to the method of marketing theii" products. Generally, however, the group of companies showing increases in sales volume includes the manufacturers of specialties and diversified products, while the group showing sales decreases includes, largely, the makers of plain staples. Thus mills which reported continuous advances in sales volume for the 1923 period of adjustment were generally either the manufacturers of specialty products and the finer staples or they had diversified their production and had adjusted it to changes in market requirements. The replies indicated that many manufac- turers were concentrating their efforts upon meeting the changed type of demand and that a great deal of adjustment had already taken place by the end of 1925. SOURCES OF RAW MATERIALS The reports from these New England cotton mills indicated that the two chief materials used — raw cotton and rayon — are obtained principally from sources outside New England. Over one-half of the mills reporting indicated the use of rayon or silk, or of both rayon and silk, and these materials are purchased from a variety of outside sources. The mills purchasing cotton yarn, unfinished gray cloth, and cotton waste obtained these supplies mainly from within New England, although a considerable number of companies obtained their yarns from southern mills. Several of the reporting manu- facturers complained of the handicap which they suffered as a result of fluctuations in the price of raw cotton. One of these men re- ported that the unsettled conditions of the raw-cotton market affected his business more than any other single factor. LABOR AND EMPLOYMENT The importance of labor in the New England cotton-goods indus- try is indicated by the fact that in 1925 wages paid to workers in New England cotton mills were equivalent to 63.2 per cent of the value contributed by the processes of manufacture outside the cost of materials, and represented 26.1 per cent of the total value of 312 INDUSTRIAL STRUCTURE OF NEW ENGLAND the product. For the rest of the country, outside New England, the payments to wage earners represented 50.5 per cent of the value added by manufacture and 17.6 per cent of the value of the product. The average annual wages of cotton workers of New England in 1925 was $963 and for the rest of the country $696. The item of labor cost and labor efficiency is thus of particular concern to New England. Labor cost per hour or per day is not so significant as the cost per unit of product. Labor efficiency is closely related to plant management and plant equipment. New England has certain distinct advantages in the efficiency of its labor, which are partly a matter of acquired skill and partly the result of a climate that is favorable to continuous physical exertion. Fluctuations in seasonal employment, resulting from changes in manufacturing activity at different times of the year, present serious problems, both to the mill managers and to the communities in which cotton manufacture is the predominating industry. For the whole cotton-goods industry of New England the months of high employment in 1925 were from January to April, inclusive, while the low months were from July to September, inclusive. In that year the month of maximum employment, as shown by the number of persons on pay rolls, was March, with 175,337, and the lowest month was September, with 151,831. The monthly average for the year was approximately 165,000. The monthly variation in em- ployment for the cotton-goods industry as a, whole in New England, as shown by the difference between the month of maximum employ- ment and that of minimum employment, was 14.25 per cent of the yearly average number of employees. For the United States as a whole, including New England, it was 7.15 per cent. A number of mills have taken definite steps to overcome seasonal employment by diversifying their products, developing supplemen- tary lines or manufacturing for stock, whereby they have made sat- isfactory progress in increasing the uniformity of employment throughout the year. One of the ways in which management aids in promoting labor efficiency is by the adoption of properly designed incentive methods of wage payment, such as piecework or similar systems, which, by offering a financial reward to workers in proportion to their output, has a tendency to reduce unit labor costs. The proportion of em- ployees paid by such incentive methods is noticeably high, as indi- cated by the reports of the representative mills making replies. Each mill was asked to state the proportion of its employees paid by piecework or other incentives, to those paid by the day or hour, together with the number of persons employed in January, April, July, and October, of 1923 and 1925. For the group of 76 cotton mills giving this information, whose total average employment in 1925 was 66,000 wage earners, it was found thai of this total number of workers 52.5 per cent were paid by piecework incentives. A considerable number of mills had 75 per cent or- upward of their employees oil this basis, and there were few reporting less than 35 per cent of their workers so compensated. The comparison of mills replying in the different States, as shown by a simple unweighted average of percentages, shows the following: TEXTILES 313 Connecticut, 64 per cent ; Maine, 51 ; Massachusetts, 48 ; New Hamp- shire, 45; Vermont, 42; and Rhode Island, 39. CHANGES AND IMPROVEMENTS IN MANUFACTURE The greater portion of the mills reporting in this group indicated that various improvements have been effected in their manufactur- ing operations. Accident prevention was mentioned in the greatest number of cases. The other adjustments most frequently mentioned are changes in production methods, changes in type of product, and changes in selling practices. Changes in "production methods. — Regarding improvements in pro- duction methods, numerous replies indicated success in reducing the cost of manufacture through the installation of new labor-saving ma- chinery or through increased efficiency of their workers by accident prevention or other means. One manufacturer of cotton piece goods, with sales in 1925 of $2,000,000, reported a reduction of 20 per cent in operating costs through the organization of production methods. The development of new processes whereby cheaper forms of raw material were made available is reported in another instance. A maker of gray piece goods reports increased production with fewer operatives and higher wages as a result of rearranging and consolidating the employees' operations. In another instance the costs of production of certain styles were said to be reduced 15 to 25 per cent by rearrangement of jobs in the mills and by a better system of production control. Better knowledge of production costs and better feeling among workmen are cited as improvements effected by another cotton-goods manufacturer. These are but a few examples from many received. Aside from changes in production methods through internal man- agement of plants, active efforts to modify the type and quality of products are reported in numerous instances. One $5,000,000 com- pany maintained production through the introduction of a varied line of rayon fabrics. Another large concern, making ginghams, toweling, and domestics, reports the addition of supplementary prod- ucts in the line of finishing of yarn and cloth. Maintenance of pro- duction is obtained by another large manufacturer by diversity of cloth construction; and a mill whose chief output has been muslins reports diversification to include other styles of fabrics. A large maker of surgical gauze and cheesecloth reports that by diversifica- tion of product for sale to different classes of trade, and by a careful program of manufacture for stock, his mill has been able to keep employment and production regular and to have a continuous in- crease in sales each year since 1921. Lowered manufacturing costs and increased business, through the addition of new products, are reported by a small manufacturer of sheets and bedspreads. Many concerns making bedspreads have developed a line of rayon spreads in the last few years to meet domestic demands. One of the larger mills making a variety of products reports that it has been driven by southern competition on coarse staple goods to make many specialties: the result of this has been better prices but less volume on any individual line. A medium-sized plant which changed from making plain cloths to fancy goods, such as handker- 314 INDUSTRIAL STRUCTURE OF NEW ENGLAND chief material, shirtings, and voiles, reports increased sales and more continuous operation as a consequence of its independence of varia- tion in gray-goods values. In another instance a maker of mixed cotton, rayon, and silk specialties for corsets and lounging robes has found that the product of his mill has not followed the general variations of the textile business. Success obtained in developing specialized products in a field of less competition than that of the staples is reflected by another manufacturer who reports a change from making raw cloth to converted goods, such as dress goods and linings, which are sold direct to the cutting-up trade. Statements by executives. — Leading executives in the cotton-textile industry were asked to make statements as to their policy regarding the installation of new equipment, and their opinion regarding the attitude of the New England industry as a whole in this respect. The general tenor of these statements is that the more progressive and prosperous cotton mills are fully alive to the importance of main- taining their equipment in the best possible shape. There is indica- tion, however, that this attitude does not persist in some portions of the industry. Statements of some of the executives are reproduced below as direct quotations to indicate the attitude of the leaders among New England mills : 1. It has been necessary to adapt our equipment and plants in New England to the better quality of work which is most suitable for manufacture in this region. To this end we have during the past two or three years added to and changed our equipment to produce this character of product, although in the case of our mills this did not require the same radical changes as might be necessary in other companies for the reason that our general line of product fits to a remarkable degree the present demand for light-weight goods for both men and women, and cotton goods of varying character and style. 2. Our policy in regard to new and up-to-date equipment has been very liberal, in that we have installed new equipment very freely, having even spent more money in this direction than was proper under the business conditions and our general financial situation. In this connection we would call attention to the fact that the New England cotton industry has been unjustly criticized for failure to put in automatic looms. On the very fine yarns making style fabrics there is a reasonable doubt as to whether the automatic loom makes sufficient labor saving to compensate for the large additional cost, both initial cost and upkeep cost. This is further complicated on the fine-yarn goods by rapid style changes, making it necessary to scrap existing weaving equipment and put in new equipment. This, again, argues against the more expensive automatic looms. On medium and coarse goods, where the automatic loom is an unde- niable benefit, the competition with the cheap-labor centers of the Southeast has tended to remove the manufacture of this type of goods from New England. 3. It has always been the policy of this company to keep our mills up to date in equipment, both as regards repairing machinery already installed in the mills and in replacing obsolete machinery as better machinery is brought out, when- ever it is profitable to do so. With regard to the attitude of the industry in general in New England on this subject we believe that the majority of the mills follow this principle, al- though some have been unable to do so because of their financial situation. 4. It is the policy of this company to keep its machinery as modern as possible. We have our plant in such shape that it could go a lifetime without replace- ment, if these replacements were not made necessary on account of improved machinery. We do believe, however, thai our competitors in this field in New England are allowing their plants to depreciate, due to the fact that they do not make proper allowance in their costs for this depreciation or obsolescence. 5. We have the most up-to-date equipment, we believe, that is on the market with regard to winding, warping, and finishing. We have just put in new TEXTILES 315 finishing machinery, and installed a complete system of warping two years ago ; purchased a warp tying-in machine at that time and, in fact, have bought everything that we can lay our hands on that will give better production and better material. 6. Our company has always felt under the necessity of keeping its plant and equipment in a high state of operating efficiency. We fyave also investi- gated every new machine and device in the textile or textile-finishing industry to see if it was economy to install it. Any machine which will pay for itself in two years is installed without question. Much new machinery is installed if it will pay for itself in five years. From an examination of quite a number of textile mills in New England we should say that we were in the upper quarter in that point of view. Many of the mills have machinery dating back to 1878, which was low in efficiency even 20 years ago. 7. During the last four or five years of depression in the cotton textile industry, it has been the policy of this company to keep their equipment up to date in all respects so that they might be in a position to take advantage of better times when conditions changed. Of course, we know that in some sections the machinery and equipment have been allowed to depreciate. 8. As to our policy in regard to the installation of new and up-to-date equip- ment, up to two years ago it was our policy for some years to spend from $200,000 to $300,000 annually on plant improvements in the way of replacing obsolete equipment. For the last two years, however, this has not been pos- sible on account of our figures going into red. The extent of reorganization that has been found necessary in individual instances is illustrated by the following statement from the executive of a large New England company, with several mills, which has undergone thorough reorganization in recent years : Recent improvements have resulted in the replacement of a widely scattered collection of plants of all degrees of usefulness by a more closely knit group of the most promising plants, augmented by the best machinery, etc., from the least promising plants which were gradually discarded as conditions determined. This elimination of " deadwood " brings to each surviving active plant a greater share in the attention of the management and permits a lower production cost for the company's products. General conditions were for the most part unfavorable during the period when this overhauling and revamping were taking place. SELLING ORGANIZATION Marketing mediums. — The commission house is still the principal single marketing medium for New England cotton mills making colored-yarn goods ready for the market, and for some important gray-goods mills which finish their own goods and market these through commission houses or through their own sales departments with headquarters in New York. A majority of other gray-goods mills sell their products direct to the converting trade and the large cutting-up trade through brokers. A few mills have New York selling offices, but their sales representatives sell largely through outside brokers. The commission houses that sell the gray-goods products of a few New England mills also sell in part through out- side brokers. In the case of mills whose product is sold through commission houses, selling methods are wholly in the hands of the selling agents. Advertising. — The commonest medium of advertising was said to be the trade journal ; a few manufacturers reported the use of news- paper advertising, and several of them advertised their product by means of direct mail. The average advertising costs, as reported by 70 representative mills, was two-tenths of 1 per cent of the aggregate value of their 316 INDUSTRIAL STRUCTURP] OF NEW ENGLAND sales in 1925, while the reported selling costs, exclusive of advertis- ing, were 3.4 per cent. Use of trade-marks. — Of 77 concerns which indicated their prac- tice regarding the use of trade-marks, there were 40 which identified all or a portion of their product by this means. Almost an equal number, 37 concerns, stated that none of their goods were trade- marked. Of those which made use of trade-marks, 15 reported that their entire output was so identified. In numerous cases the manu- facturer reported that his concern did no advertising, but that the product of the mill was trade-marked as a whole or in part. Sales plans. — Typical examples of general sales plans in use by representative mills were obtained from a few leading executives. A number of these plants which ,sold their products solely through selling agents required no special sales organization. While it is apparent that many mills find such arrangement satisfactory, it is evident that millmen are not unanimous on this score, as is indicated in the following statement from one mill executive : Our product is sold exclusively through one commission house, with whom we are under contract to dispose of our entire product. We feel, however, that at the present time this is one of the greatest problems, and there is a very open question in our minds as to whether we are pursuing the best policy under the present market conditions. Our commission house has eight salesmen who are paid on a salary basis, and each man is assigned a definite section of the United States to cover. In Chicago and Boston we have branch offices with two local people in each office. Sales plans followed by some large mills which have their own selling organization are indicated, along with reference to significant changes which they are facing, in the following statements by execu- tives of typical mills : 1. The general sales plan which our mills have been following since Septem- ber 1, 1926, is to sell goods under our own name with our own merchandising organization. Our former commission house, however, is continuing as selling agents, and as such is manager of our merchandising department. At the pres- ent time we have approximately 50 salesmen who are classed as such, and they are paid a straight salary. We are making changes in the matter of assigning territories, so that I do not know that we would have anything of special interest to contribute. The change in the character of product and demand for textile fabrics has brought about the necessity of a radical change in our merchandising and selling methods, and this we are putting into effect just as fast as condi- tions will permit. 2. Our general sales plan is to sell our product principally through the office of a New York company, which is maintained for that purpose. Sales are made almost entirely through that office to converters. We do not attempt to sell through jobbers, wholesalers, or retail stores, and our goods are put out almost entirely in the gray form, not finished. There are only a few salesmen, and their market Is almost — practically entirely — New York City amongst the con- verting trade, which is centered there. 3. We have a very small line of customers, selling only to the cutting-up trade. Maintain offices In Chicago, New York, and Hyde Park, handling all employees on a salary basis. Have a commission agent in Los Angeles who does a limited business. Do do advertising, but plan on keeping in direct touch with our customers and giving them the best service possible. 4. We have five regular salaried salesmen and two commission men. Our market Ls three-fourths In the jobbing trade. Being a small organization, we have maintained the personal touch, both in the assigning of territories and in the studying of the market ; while we believe that the compensation of salesmen should be based on gross profits from their sales, we have not yet made the change from direct salaries to that form of compensation. TEXTILES 317 5. Our products are sold through salesmen traveling from branch offices where warehousing facilities arc maintained. The branch managers continue to sell and arc always picked from our more experienced salesmen. There is no par- ticular plan for the assigning of territories. Geographic considerations, trans- portation, personality, and efficiency of branch offices have their bearing. All salesmen work on budgeted quotas and receive with branch-office managers bonuses based on the excess of their quotas. Contests and prizes are used to sustain interest, enthusiasm, and initiative. Market conditions are studied by salesmen's reports, investigations made through advertising agencies and others, by specially detailed salesmen, and by curves and tendencies as shown through statistics accumulated and tabulated in a department one of whose important functions is precisely that. We have in the New York office five salesmen who cover the eastern section of the country. We have one agent in Cuba and one agent in the Philippine Islands. In the Chicago office we have two salesmen who cover the Chicago territory and the section west of Chicago. While every salesman has his own territory, it is the policy in some sections to have two salesmen, and they alter- nate in making calls on the trade. They are all paid a certain fixed salary, plus a commission on sales. CHANGES REPORTED IN DEMAND AND IN DISTRIBUTION METHODS The opinion of leading mill executives regarding the extent to which changes in the nature of demand and in buying policies in recent years have affected the operations of New England cotton mills are indicated in the statements from a few of the numerous re- plies to a special inquiry. While the opinion of some executives was that changes in consumer demand had had no appreciable effect on their business, a number of them indicated an outstanding influence on mill operation. The lack of forward buying in connection with the general change toward hand-to-mouth purchasing was emphasized in one case as working a distinct handicap as far as profits are concerned during the period of the rapidly falling cotton market of the last few years. A mill which formerly received orders on certain lines only twice a year finds that now orders come in every week, and that where it formerly put out sample lines at stated periods, with very little new designing between seasons, it now finds that its designing room, which is claimed to be larger than that of any other firm in its particular lines, is continually buried by demands for new ideas and new patterns. A manufacturer of fabrics for hospital use reports that in conse- quence of the great fluctuations of cotton prices hospitals which used to contract for six months or a year now contract for only a 3-month supply at a time. In the sale of cheesecloth this mill regards the hand-to-mouth buying of retailers and wholesalers as a good thing for the trade, because it flattens out production and sales curves, thus making operating and employment conditions more stable. The executive sees a tendency on the part of large consumers to desire more permanent relations with their sources of supply, on the basis of continuing contracts or other means for assuring regular supplies. The executive of a mill making ginghams states that the rapid changing of fashions and styles has resulted in buying in very small quantities. On account of the time required for manufacture — some three months from designing to finishing — there is a consequent ex- cessive expense for distribution along with the natural diminution of total sales. 318 INDUSTRIAL STRUCTURE OF NEW ENGLAND The executive of a plant engaged in the manufacture of mechani- cal fabrics, including fabric and cord for the automobile-tire industry, states that the general adoption of the cord tire and balloon tire \ few years ago made obsolete a very large proportion of its equip- ment, which was designed to make canvas for tires. Quite radical changes and additions to equipment were thus made necessary. This executive states: The production of the plant a few years ago was usually sold up for a year or even 18 months ahead ; but by reason of the adoption of a hand-to-mouth buying policy we are fortunate now to be sold up two or three months ahead. A summary of the numerous problems which the changes in con- sumer demand and other factors have brought to New England cot- ton manufacturers is offered in the following extended comments of a leading executive : There has been a great change in the consumer demand and buying policy in the last five years ; changes in styles have been radical and frequent, more so than during previous periods, and buying all along the line has been what is termed on a hand-to-mouth basis. This has been done in order to keep inven- tories low and to meet the frequent changes in styles. This has made oper- ation of the mills more difficult, as a manufacturing program must naturally be laid out for several months ahead, whereas our customers have not been willing on the whole to buy for several months ahead. This has, therefore, shifted the burden of carrying stock from the buyer to the maker, and to a certain extent put the guessing as to what fabrics would be most salable onto the mills instead of the buyer. Many manufacturers in the face of this situation have therefore curtailed their production rather than stand the hazard of piling up goods. Another very disturbing element during the last five years has been erratic changes in the price of raw cotton, which has influenced buyers in their pur- chases and introduced serious risks in mill operations. Another factor has been the large increase of imported goods in the finer counts of yarns. This reached its peak two years ago, and has now dwindled off somewhat on account of adverse conditions in England. Another factor has been the quite general practice in the South of running their mills nights. The large increase in production thereby obtained, which is obtained at a labor cost considerably less than in the North, has taken a large amount of business away from the northern mills. This has led a number of northern mills to discontinue making lines made by southern mills, and to go on to new lines which have been heretofore exclusively made in the North, thereby increasing competition of the northern mills among themselves. Another factor has been the large use Of rayon, which has been the means of displacing a considerable amount of all cotton cloth, thereby depressing the price of such cloth. An important adverse element which has affected the manufacture of medium and fine cotton cloth, particularly those fabrics entering into women's wear, has been the change of women's styles requiring less yardage of cloth, and also a marked tendency to use silk wherever possible. All these factors combined have created many serious problems for the mills, which some mills have been able to meet successfully, while others have not. Recognition of the need for special attention by New England manufacturers to the selling end of their business is voiced in the comment of a cotton-yarn manufacturer, whose annual sales amount to $2,250,000. The principal trouble in business to-day is selling. The desire of mil). managers to keep mills running lias led to price cutting, though a large per- oentage of sales are made at a loss. Price cutting hinders rather than helps sales. Management Is Largely to blame for the present unsatisfactory balance sheets. Thai manufacturers are o^ivino; increased attention to the market end of their business and are catering actively to the demand for tkxtii.es 319 specialties and novelties is indicated in numerous replies. One of the largest manufacturers of printed and finished cloth and yarn in New England reports the concentration of attention upon a new sell- ing policy. A manufacturer of bed comfortables doing a $3,000,000 business reported the consolidation of selling activities and the open- ing of a plant in the Middle West. The executive of a mill making ginghams and other piece goods, doing a $5,000,000 business, reports that decreased sales due to changed styles have been offset by catering to the popularity of silk and rayon fabrics. This concern sells its goods under its own trade-mark through a commission agent. An- other large company making velvets and corduroys states that better selling and new lines of fabric have taken business from their com- petitors. A manufacturer of handkerchief materials, shirtings, and voiles credits increased sales to better sales organization ; while a manufac- turer of absorbent gauze and cotton bandaging attributes increased sales to more intensive selling and a better product. A mill making coat linings reports also that its own efforts and those of its selling agents have enabled the plant to run continuously. A small manu- facturer of cotton and rayon curtain materials reports increased sales in New England resulting from local sales made at the plant, and another mill maintains a retail store for the sale of remnants. Fre- quent emphasis is placed on the fact that consumer demand has changed the market from one of seasonal activity to one of hand-to- mouth buying. As a consequence, the production of cloth and yarn is spasmodic rather than seasonal. The replies, as a whole, indicate that a closer coordination is taking place between the production phases of cotton manufacture and the marketing of the product. DYEING AND FINISHING TEXTILES The processes of dyeing, bleaching, mercerizing, printing, and finishing textiles are carried on mainly in establishments apart from the mills w T hich spin yarn and weave cloth. The unfinished goods are usually sold as they come from the mills to other parties, who have them finished in specialized plants that have equipment for" performing the particular processing required for the final market. This work is done principally under contract at a certain price per yard or per pound, for* converters who purchase the goods in the gray from the mills. Some of the larger mills have their own dyeing and finishing establishments, and some others have all or a portion of their mill output finished for their account in outside plants. Dyeing and finishing plants thus do not usually buy and sell the goods which they prepare, but are rather sellers of their services. Their logical location is near the mills, which provide the market for these services. Nearness to the textile mills and to the market for the finished products has been the dominant reason for the establish- ment and continuance of dyeing and finishing plants in New Eng- land. An abundant supply of clear water for the processes of dyeing and bleaching has also favored their growth in this section. The clear streams of New England are a distinct and permanent asset in this respect. The processes require elaborate and highly specialized equipment for particular kinds of finishing. Most of the work done by sepa- 320 INDUSTRIAL STRUCTURE OF NEW ENGLAND rate dyeing and finishing plants is in connection with cotton manu- facture. In wool manufacture the prevailing practice has been to finish the goods at the plants where they are woven. IMPORTANCE OF THIS PHASE OF MANUFACTURE This branch of the textile industry in New England engaged the activities in 1925 of nearly 30,000 persons, including more than 26,000 wage earners. It distributed in salaries and wages nearly $39,000,000 and was a source of manufacturing revenue to the region of approxi- mately $62,700,000. Of the 147 establishments reported by the census in 1925, all but 3 were located in Massachusetts, Rhode Island, and Connecticut. In these three States were 37 per cent of the persons engaged nation- ally in this activity. The number of establishments is approximately equal in Massachusetts and in Rhode Island, although the industry has greater importance in the former State. In Connecticut it is of much less consequence than in the other two States. Census figures for 1927 show an increase since 1925 of six es- tablishments, with a slight reduction in wage earners but actual in- crease in total wage payments. Despite a substantial falling off in the gross value of the product and in the outlay for materials, there w T as an actual increase in the reported net revenue, as indicated in value added by manufacture. Figures for the individual States for the two census years are shown in the following table. Dyeing and Finishing of Textiles in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 68 65 62 63 20 16 13, 826 13, 872 9,590 9,860 2,551 2,408 16, 229 16, 099 11, 521 11, 471 3,256 2,935 51, 434 87, 586 19, 566 21, 961 4,812 3,902 84, 460 119, 110 44, 979 47, 164 11, 779 9,875 33, 025 1925 31, 524 Rhode Island: 1927 25, 414 1925 - --- 25, 202 Connecticut: 1927 6,967 1925 5,973 Total: 1927 150 144 25, 967 26, 140 31, 006 30, 505 75, 812 113,449 141, 218 176, 149 65, 406 1925 1..- .. ... 62, 699 i Not Including Maine, I establishment; New Hampshire, 2 establishments. Because of incomplete statistics for this branch of the textile inclus- ti \. arising from lack of a uniform basis for reporting the value of product and (he cost of materials in individual plants, the data from the census can riot be construed as strictly comparable with figures for other textile lines. They are presented here as reported, however, in order- to give an approximate idea of the status of the industry in the various States. These include not only the dyeing and finishing plants for- the cotton industry but for wool, silk, and other textiles as well, since the census makes no distinction in types of fabric in this industry. TEXTILES 321 Outside New England the three States of New Jersey, Pennsyl- vania, and New York had about one-half the total number of persons engaged in this line for the whole United States. Each of these States had a greater number of establishments than did all New England, but in no one of them individually were there as many persons engaged. New Jersey had approximately 27 per cent of the national total of persons engaged in the industry, and New York and Pennsylvania together had 22 per cent. The activity in New England and these three other important States represents over 85 per cent of the United States total. It is relatively unimportant in other States. North Carolina, with 10 establishments, and South Carolina, with 8 establishments, are the only other States in which more than 1,000 persons were engaged in 1925. Several large plants have been established in these Southern States since that time. The industry in New England has followed the general trend of textiles, for the fortunes of dyeing and finishing plants fluctuate with mill activity. The maximum year in number of persons engaged and in salaries and wages paid was 1925. The greatest number of establishments and the highest net income, however, was reported in 1923. There was a loss of 10 establishments in the 2-year interval, but a very slight increase in the number of persons engaged. From 1914 to 1919 there was an increase of 29 establishments and an in- crease of 3,200 in number of persons engaged. From 1914 to 1925 the number of wage earners in this line in- creased 24 per cent in New England, in comparison with a national increase of 46 per cent. From 1923 to 1925 the number of wage earners in New England increased by less than 1 per cent, while for the United States as a whole the increase amounted to 11.6 per cent. EXPERIENCES OF NEW ENGLAND PLANTS The following summary of statements received from executives representing a portion of this industry in New England is presented to show the recent experiences of concerns engaged in dyeing and finishing textiles: Type of operation. — Of 33 firms giving information regarding plant operations, the greater part were engaged in dyeing, bleach- ing, and finishing cotton cloth, but 9 of them devoted their activities exclusively to yarns. Most of these establishments have been en- gaged in this kind of activity since their start. Age of business. — Eight of the reporting firms had been established within the last 15 years, and 9 of them between 15 and 50 years. There were 8 plants that had been in operation over 50 years, and 4 others were more than 100 years old. Fifteen of the establishments had been under the present management less than 15 years, 6 of them from 15 to 25 years, and 8 of them over 25 years. Branches. — Only four companies reported any branches; one of these has a branch in the Middle West and another branch in the South, established in 1911 and 1922, respectively; another concern reports a branch in Philadelphia, established in 1912; one company has a branch in Rhode Island, while another is a branch of a New Jersey company. Plant activity. — Twenty-six companies which gave figures regard* ing their 1925 activity reported an aggregate income of approxi- 322 INDUSTRIAL STRUCTURE OF NEW ENGLAND mately $18,750,000 and had an average employment of 5,094 workers. Fifteen of these firms had an annual income in 1925 of less than $500,000 each, and 11 of them had over $500,000; of the former, the income of 8 was under $100,000 each and that of 7 others was between $100,000 and $500,000; of the larger companies, 7 did a business between $500,000 and $1,000,000, and 4 were over a million ; 3 of these exceeded $2,000,000, and 1 of them approached $4,000,000. The 10 largest companies account for over 80 per cent of the total income for the 26, and more than 90 per cent of the total employment ; 12 firms employed fewer than 50 workers each, 11 of them between 50 and 250 workers, and 6 between 250 and 1,000 workers. Changes in the aggregate income of 23 concerns giving continuous figures from 1923 to 1925 are shown by the following totals : For 1923, $17,844,000; for 1924, $15,251,000; for 1925, $18,749,000. Prac- tically all these companies showed an increase in income from 1921 to 1923; 16 showed a decrease from 1923 to 1924, and 7 showed an increase from 1924 to 1925. Twelve establishments reported that they were operating in 1925 at from 75 per cent to 100 per cent of their maximum capacity ; 9 firms from 50 per cent to 75 per cent ; and 2 concerns at less than 50 per cent of the maximum. Seven establish- ments reported increases in the capacity of their plants since 1921, 4 of these being 25 per cent each, 2 others 50 per cent each, and 1 increased 100 per cent. Materials used. — The principal materials reported by these manu- facturers are chemicals for bleaching and dyeing, starches and other finishing material, soaps, oils, chlorine gas and lime, besides boxes, paper, and lumber for cases. Distribution of output. — The replies indicate that all these con- cerns operated for textile manufacturers or converters on a contract basis, by the yard, pound, or piece, often shipping the finished product to the converters' customers. Three of the establishments sell yarn in addition to their commission finishing, and each of these reported the use of trade-marks on their product. Fifteen of the companies reported the use of trade journals with a national circulation as advertising mediums. Sources of business. — Regarding the principal source of their business, 12 firms reported that from 75 per cent to 100 per cent comes from clients within New England. Six others, including one of the largest, stated that only from 10 to 20 per cent of their activity was contributed by mills within New England. One concern stated that all of its business originated within a 100-mile radius, and an- other confined its whole activity to six converters in New York City. One manufacturer explained that the tendency to concentrate the con- verting of cotton and silk goods in the New York market was re- sponsible for the decreased activity of New England plants. Improvements effected. — Comments by individual manufacturers Regarding improvements effected in facing the problems of the in- dustry include in one case the introduction of a special bonus system for paying the entire force, and in another instance monthly meet- ings of foremen for joint consideration of ways to maintain and in- crease plant efficiency. One manufacturer speaks of the necessity of very close inspection of goods on account of market declines. A change iron) the bleaching and dyeing of cotton piece goods to fast- TEXTILES 323 color dyeing and finishing of rayon fabrics is indicated by one execu- tive, and another states that increases in rayons have made up for the decrease in cottons. Other concerns report improvements in working conditions, standardization of products and practices, pro- duction control through development of purchasing schedules, and maintenance of high quality of output through close inspection of products. COTTON MANUFACTURES OTHER THAN OF WOVEN GOODS The New England production of other cotton fabrics in addition to woven cotton cloth, comprising yarns for sale, thread, waste, small wares, and cotton lace, is of substantial importance. The aggregate value of its output in 1925 exceeded $180,000,000, and represented over one-fourth of the total value of all New England cotton manu- factures. The general location of establishments in these groups runs parallel to the location of other cotton manufactures, w 7 ith the greater portion of activity confined to the three southern States of New England. Statistics for yarn, thread, and cotton waste are included with woven goods in the census totals for cotton goods as a whole ; hence these individual items can not be segregated by States. Figures for cotton small wares and cotton lace, however, which are com- piled separately, are available for the individual States. Production and value of yarns for sale, cotton sewing thread; and waste, in New England as a whole, and their relation to the total for the United States, are shown for the census years from 1909 to 1925, inclusive, in the next table. In each of these three lines it is observed that the value of the New England production represents a higher proportion of the national production than does the quantity produced, thus indicat- ing the relatively higher unit value of the New England output. New England Production and Value of Cotton Yarns for Sale, and of Cotton Sewing Thread and Cotton Waste for Sale 1909-1925 Thousands of pounds New England as per cent of United States Value in thousands of dollars New England as per cent of United States Year New England United States outside New England New England United States outside New England Yarns for sale: 1925 __• 109, 123 113,310 104, 393 209, 132 143, 329 Ul, 788 23, 312 21, 164 15, 989 12, 163 10, 389 10, 279 172, 548 172, 783 144, 113 180, 639 184, 979 189, 496 517, 234 507, 416 379, 825 409, 070 354, 658 328, 583 14, 273 10, 481 7,286 14,279 16,118 13, 422 244, 547 205, 857 127, 663 134, 675 132, 381 121,017 17.4 18.3 21.6 33.8 28.8 30.1 62.0 66.9 68.7 46.0 39.2 43.7 41.4 45.6 53.0 57.3 58.3 61.0 68, 178 79, 800 77, 742 191, 997 50, 075 42, 723 43, 912 41, 127 35,000 25,231 8,558 8,802 19, 137 18, 513 7,996 24,166 9,629 7,619 244, 882 268, 884 140, 813 261, 768 77, 289 66, 592 15, 964 14, 184 15, 202 29, 778 14, 359 11, 714 21, 480 18, 793 5,311 12, 192 4,793 3>256 21.8 1923 22.9 1921 35.6 1919 42.3 1914_._ 39.3 1909 39.1 Cotton sewing thread: 1925 73.3 1923.. 74.4 1921 70.0 1919 45.9 1914 37.3 1909 42.9 Cotton waste for sale: 1925 47.1 1923 49.6 1921 60.1 1919 66.5 1914 66.1 1909 70.8 324 INDUSTRIAL STEUCTUfeE OK NEW ENGLAND COTTON YARN FOR SALE Cotton yarns produced in New England for sale had a value in 1925 exceeding $68,000,000, representing 10.3 per cent of all cotton manufactures of the region. New England contributed only 22 per cent of the total national value, however, in contrast with 36 per cent in cotton manufactures as a whole. The State of Massachusetts is naturally the chief producer, with a produce in 1925 valued at $45,000,000. The output in Rhode Island had a value of about $9,600,000 and that of Connecticut approached $6,000,000. In 1925 the State of North Carolina produced more than twice as much yarn for sale as all New England. Most of the yarn made by New England cotton mills is woven into cloth at the mill. Some mills, however, sell their whole output as yarn and quite a number of others whose primary product is cloth sell a portion as yarns. There are several outlets for yarns sold by New England mills. Some of it is sold to other mills for making woven mixtures with wool or silk, but much of it is used in the manufacture of sewing thread and of various cotton small wares, also in making cotton knit goods. Cotton yarn has followed the general trend of cotton-goods manu- facturing in New England. Its position in the national output was well maintained from 1909 to 1919, and it showed a substantial in- crease in relation to the rest of the country during the war period. The year of maximum production, as well as maximum value, was 1919. In the next two years both volume and value fell off to less than half the 1919 figures. These both showed a substantial increase in 1923, with a pronounced falling off in 1925. Size and age of establishments. — Replies to inquiries by the De- partment of Commerce were received from 19 manufacturers of cotton yarns, embracing a total volume of sales exceeding $21,000,000 and giving employment to approximately 5,300 persons. Eleven of these concerns made and sold nothing but yarn, while 8 of them made addi- tional products. Their individual sales volume in 1925 ranged from $100,000 to $3,000,000 each. There were 8 with sales between $1,000,000 and $3,000,000; 7 others between $500,000 and $1,000,000; and 3 between $100,000 and $500,000. Four of the firms reported between 500 and 1,000 employees, 13 between 100 and 500, and 2 fewer than 100 employees. Only 2 of the companies had been in business less than 15 years; bat 7 had had new management within that period, while 8 had been under the same management from 25 to 50 years and 1 over 50 years. Branch plants were reported by 3 of the companies — 1 located in Pennsylvania and 2 in New England — established in 1919, 1924, and 19255. respectively. Nine of the establishments were operated at 75 per cent or more of maximum capacity in 1925, and 3 of these reported full operation. Six were operating from one-half to three- quarters of (he maximum and 4 below one-half capacity. Additions to capacity of plant since 1921 were reported in two instances. Cha/nces i/n sales, — Fourteen of the replies Indicated significant in- creases in sales from 192! to 1925, and live indicated decreases. While decreased sales were experienced from 1923 to 1924 by all but 2 of the 19 firm-, substantial increases were shown by 7 companies from 1923 TEXTILES 325 to 1925, 10 showed decreases, and 2 remained unchanged. Several companies made very substantial increases in 1925. The total sales of five large manufacturers, each with a 1925 volume between $1,- 000.000 and $3,000,000, increased from $7,460,000 in 1923 to $9,- 145,000 in 1925. Increased sales are credited by individual manufacturers to main- tenance of a high standard of quality, to the opening up of new sales territory, and to making the right material at right prices' to the consumer. One manufacturer reported an increase in New England sales as due to low prices and better salesmanship. The head of a concern doing a $500,000 business, which had changed its product from tire-fabric yarns to cotton yarns for sale, spoke of southern competition and of mill capacity in excess of requirements, saying : " Our present aim is to produce a quality that will be sought." In another instance a large manufacturer reports the starting of a weav- ing plant to take care of the surplus product of his cotton spindles. A manufacturer of fine cotton yarn, doing a $2,000,000 business says : " Our organization as a whole is constantly improving." A number of the replies spoke of the keen competition from outside New England, while a few reported competition from both New England and the South. The product of these mills was sold prevailingly in New England or the Middle Atlantic States. Ten of the manufacturers reported that from three-quarters to all of their sales were made in New Eng- land, while 3 indicated that from one-half to three-quarters of their market was in that section, and 4 stated less than half. Sales in New England were said, in 10 of the replies, to be decreasing, while 5 stated they were increasing and 3 indicated no change. Six con- cerns reported sales in the Middle West and one in the Western States. Only four firms indicated direct exports, and these were very- slight amounts. Channels of distribution. — Ten of the 19 companies reported sales made direct to manufacturers, while 7 made sales through selling agents and 2 sold direct to wholesalers. One yarn manufacturer reached his New England trade by his own salesman, but covered New York and Pennsylvania through a selling agent. Twelve of the firms indicated that they use a single channel, while 7 employ more than one. Trade-marks and advertising. — Practice regarding the use of trade- marks on their yarns was evenly divided between concerns whose product bore an identifying brand or name and those with no trade- mark. In the use of advertising, also, there was no uniformity, 7 concerns reporting the use of trade journals or direct mail and 5 in- dicating no advertising of any kind. COTTON SEWING THREAD The sewing-thread industry of the country is largely concentrated in New England, in the States of Massachusetts and Khode Island. New England produced about five-eighths of the national output of cotton sewing thread in 1925, comprising three-fourths of the national value. 61232°-— 30 22 326 INDUSTRIAL STRUCTURE OF NEW ENGLAND Growth of industry.— The industry has shown a continuously steady and healthy growth in New England. The New England production advanced from 43 per cent of the national total in 1000 and a value of less than $9,000,000 to 70 per cent in 1921 and to over 73 per cent in 1925, when its value was nearly $44,000,000. The manufacture of sewing thread in New England has had a steady and healthy growth, with no setbacks either in volume produced or in value of output. The 1925 production of 23,312,000 pounds was an increase of more than 2,000,000 pounds over 1923 and of more than 7,000,000 pounds over 1921. The national production increased by 61 per cent in quantity from 1921 to 1925, while that of New England increased only 46 per cent. In value, however, the national increase was only 19 per cent, while in New England the increase was more than 25 per cent. Massachusetts, the only State for which separate figures are avail- able, produced 13,210,000 pounds of cotton sewing thread in 1925, with a value of $22,467,000, contributing slightly more than half the New England total in that year. Source of materials. — Cotton yarn is the chief material used by * thread manufacturers, and the source is about equally divided be- tween New England and other sections. Replies from 11 concerns making sewing thread for sale to shoe and garment manufacturers or as spool cotton indicated that all of them purchased cotton yarn from other concerns rather than spinning it themselves. Each of these concerns was engaged solely in making thread. The total sales of these companies in 1925 were $8,754,000, and they employed 1,150 workers. Nine of the 11 plants had been established within the last 25 years and 6 of these within 12 years. Distribution of products. — The majority of replies reported distri- bution direct to the manufacturing consumer, although a few market their output through selling agents or wholesalers, and one company maintains its own sales offices and retail stores in New York and Middle Western States. Trade-marks and advertising. — The practice of using trade-marks appears general, all but 2 of these concerns stating that all of their output was branded, and the other 2 trade-marked a portion. Na- tional advertising was indicated in four instances, the trade journal being the main channel. Location of markets. — This product shows wide distribution. Seven concerns stated that their principal sales are made in New England and the Middle Atlantic States, while 3 others market their product chiefly in the Middle West and 2 concerns reported nation-wide distribution. Nine of these companies stated that sales within New England comprised 20 per cent or less of their total business, and only two replies indicated New England as the prin- cipal market. Direct exports of any consequence were reported in only one instance, where they amounted to 6 per cent of the com- pany's total business; three other plants stated that their exports were less than 1 per cent. Sources of competition were stated by these concerns to be confined to New England and the Middle Atlantic State-. TEXTILES 327 COTTON WASTE! The value of the cotton waste produced in New England for sale in 1925 was more than $19,000,000. Massachusetts, which was the leading State of the country in the production of cotton waste for sale, contributed nearly $11,000,000 of this total and Rhode Island nearly $5,000,000; minor amounts came from Connecticut, Maine, and New Hampshire. Cotton waste is used principally for wiping machinery, for pack- ing car-wheel journals and heavy machines, and for making mop yarns and various other coarse textile products. The proximity of a market for this by-product of the cotton-goods industry provides a commercial outlet of substantial importance. The volume of New England production of cotton waste for sale has been fairly regular in recent years, except for a sharp drop in 1921. Its value, how- ever, has fluctuated widely in the different census years and has borne little relationship to the quantity produced. The value of the New England output showed a moderate increase in 1925 com- pared with 1923, but the New England proportion of the national value has declined, in consequence of great increases in the output of other sections of the country. Replies from a number of concerns engaged in the processing of cotton and wool waste for sale indicated that the New England mar- ket absorbed upward of half of their output. About 70 per cent of the product of these reporting companies was branded. Distribu- tion was generally made direct to the industrial consumers, but in some cases it was made through wholesale and retail dealers, or through selling agents. COTTON SMALL WARES The cotton small-wares industry is a specialized branch of tex- tile manufacture which includes a considerable variety of narrow woven or braided fabrics, such as webbing, elastic and nonelastic tapes and cords, also mill banding, buffing wheels, fabric belts and belting, garment trimmings, edgings, figure labels, as well as flat and round braids, shoe laces, and corset laces. Most of these products are made in separate establishments, but a small portion of the total is included with other cotton goods. The industry contains a relatively large number of medium-sized or small plants in compari- son with the other cotton manufactures of New England. Although the value of these products made in separate establishments com- prised only 7 per cent of all New England cotton manufactures in 1925, yet the national importance of this industry is indicated in the fact that New England contributes more than 60 per cent of the total United States output of cotton small wares. Outside of New England the important States are Pennsylvania, New York, Georgia, and New Jersey, in the order given. The product of 140 New England establishments in this industry was valued, in 1925, at nearly $45,000,000, engaging the activities of more than 11,000 persons, who were paid more than $12,000,000 in wages and salaries. The industry added more than $20,000,000 to the New England manufacturing income. It provided a market for materials amounting to nearly $25,000,000, including fuel, power, and mill supplies, in addition to textile materials. Southern New 328 INDUSTRIAL STRUCTURE OF NEW ENGLAND England is the seat of this industry, Rhode Island leading in 1925 with 66 establishments, which contributed nearly 40 per cent of the New England total. Connecticut surpassed Massachusetts in output, although the latter State had more than three times as many estab- lishments engaged in this line. Its importance in the various States is shown in the following table. Importance of Cotton Small-Wakes * Industry in New England in 1925 Estab- lish- ments Persons engaged Thousands of dollars States Wages and salaries Co§t of materials Value of products Value added by manu- facture Rhode Island.- _ 66 16 52 6 4,704 3, 085 2,943 288 5,221 3,610 3,101 316 10, 117 7,144 6,952 502 17, 845 13, 641 12, 375 1,040 7,728 Connecticut 6,728 Massachusetts 5,423 New Hampshire. - 539 New England 140 230 11,020 17, 778 12, 248 19, 801 24. 715 41,816 44, 901 74, 675 20,418 United States 32, 859 1 Small wares reported as secondary products bv establishments engaged primarily in other industries for the whole United States in 1925 amounted to $5,600,000. Materials and products. — The principal textile materials used in this industry are cotton yarns and domestic short-staple raw cotton, with some silk and rayon and rubber thread. This industry in 1925 in the whole country consumed 21,339,000 pounds of raw cot- ton and 42,734,000 pounds of purchased yarn. It thus appears that about two-thirds of the industry buys yarns manufactured by other establishments, while one-third spins its own yarn from the raw cotton. A portion of the purchased yarn comes from New England mills, but a considerable part of it comes from outside New Eng- land. The most important single product is woven elastic webbing, whose value in Rhode Island, Connecticut, and Massachusetts in 1925 exceeded $20,000,000. Its volume in that year was 14,034,000 pounds, showing a substantial increase in weight from 1923 but a reduction in linear yardage as well as a reduction in total value. For the country as a whole the value of all cotton small wares showed an increase of 2 per cent in this period in the value of the product but a falling off of 5 per cent in the value added by manu- facture. Prod/action and sales practices. — Replies to special inquiries re- garding production and sales practices were received from 57 New England manufacturers of cotton small wares with aggregate sales of $27,887,000 and a total employment of 5,125 workers. They represented 57 per cent of the New England total for this industry in that year. Thirty of these concerns were engaged primarily in making elastic or nonelastic webs, braids, or tapes, while 19 other plants were makers of shoe laces and other lacings as their sole or main product. Secondary lines reported by individual companies include the making of specialties for radio and other electrical equipment, sleevings, lamp wicks, cotton neckwear, trimmings, and notion-. Two concerns reported also job dyeing and converting of TEXTILES 329 yarn as supplementary activities, and one firm manufactures broad silk cloth as a side line. Size and age of establishments. — The small-scale operation in this industry is indicated by the fact that the majority of these estab- lishments employed fewer than 50 workers each. Twelve firms re- ported from 25 to 50 persons, and 12 others employed from 50 to 100 workers each. Of the larger companies, 6 firms had a pay roll of upward of 100 workers each, and 4 of these exceeded 200 workers each : 2 of these companies had over 500 employees, and 1 of them over 1,000. The four largest establishments employed nearly three- fifths of the total workers reported. Sales in 1925 of less than $100,000 each w T ere reported by 23 manufacturers, and in 14 of these they were under $50,000. Sales in excess of $100,000 were reported by 34 concerns, 8 of these exceeding $500,000 each, and 6 of them over $1,000,000 each. Sales of the 6 largest firms made up two- thirds of the total for the 57 companies. The replies indicated that this industry is of much more recent development in New England than the cotton-goods industry in general, and that considerable readjustment has been taking place recently. The majority of the plants reporting were established within the last 25 years. Thirty-two had come into existence with- in 15 years and 21 of these wdthin 10 years. In 17 plants a change in management had taken place within 10 years. Of the manufac- turers of shoe laces, the oldest one reporting under present man- agement goes back only 21 years. Only five of the other cotton small-ware manufacturers had been under their present manage- ment longer than 25 years, the oldest one being 41 years. Branch plants were reported by 9 of the companies; 6 of these are in New England, 1 in Tennessee, 1 in Michigan, 1 in Califor- nia, and 1 in Canada. Changes from original products. — Most of the companies indi- cated no changes from the original use of their plants. Two firms had discontinued shoe laces; another had changed from shoe manu- facturing to shoe laces; one had changed from making shoe goods to nonelastic webbing; one made a different type of webbing; and another had added new automotive lines. One manufacturer dis- continued the spinning of yarn because he found it cheaper to buy yarn from the South. Sales volume and plant activity. — The aggregate volume of sales of 41 concerns making small wares other than shoe laces in 1923 was $23,700,000; in 1924 it was $19,875,000, and in 1925 it was $22,700,000, thus showing a reduction in their total of approxi- mately $1,000,000 from 1923 to 1925. Over this 2-year period the net change for 38 of these concerns wdiich gave continuous sales figures included 22 companies whose sales increased, 14 which decreased, and 2 which remained unchanged. Of the total number of 57 re- porting concerns which indicated the ratio of their production in 1925 to the maximum capacity in that year, there were 29 which reported operations from 75 per cent to 100 per cent, and 6 of these were operating their plants at the maximum; there were 22 others operating at 50 per cent to 75 per cent and 6 others below 50 per cent of their maximum producing ability. The ratio of output to maximum capacity in 1925 showed an average of 68 per cent for all plants reporting. 330 INDUSTRIAL STRUCTURE OF NEW ENGLAND Markets. — It appears that the majority of the cotton small wares find a market outside New England. Fifteen companies stated that their principal market was in the Middle Atlantic States and 2 reported national distribution. Out of 43 firms indicating the pro- portion of sales made in New England, 35 of them stated that less than one-half of their sales were in this section, and only 8 reported the majority of their sales there. Twenty-two firms indicated the presence of keen competition from within the New England States, while only 12 mentioned competition elsewhere — 3 of these stating the Middle Atlantic States and 3 of them the South. COTTON LACE AND LACE PRODUCTS Machine-made cotton-lace goods and articles in which cotton lace is largely used comprise one of the minor textile industries of New England. The cotton-lace industry in these States is estimated to engage the activities in 1925 of some 2^000 persons, paying about $1,750,000 in wages and salaries and adding about $3,500,000 to the New England income from manufacturing. It provided a market for various materials, including fuel and supplies, estimated at $2,684,000. Nearly all the mills in this industry purchase their yarns. Imported yarns are used chiefly in making Nottingham and Levers lace, and in bobbinet machines. Cotton lace. — There were 15 lace-making establishments in New England reported in the 1925 census. Separate figures were given for only nine establishments in Rhode Island, whose product had a value of nearly $3,000,000. By apportioning the figures for the 6 establishments in Connecticut and 1 in Massachusetts from the undistributed United States total, the importance of the industry for New England as a whole appears as shown in the following table. In this activity New England is greatly overshadowed by Pennsyl- vania, which contributed more than 60 per cent of the national value. New York State also surpassed Rhode Island. Rhode Island pro- duced approximately one-half of the national output of Levers laces, its product amounting to 4,481,000 square yards, valued at $2,963,000. Cotton Lace Goods in New England, 1925 and 1927 State and year Estab- lish- ments Wage earners Wages Cost of materials Value of product Value added by manufac- ture Rhode Island: 1927 10 9 6 846 733 459 $927, 298 825, 000 533, 832 $1, 143, 037 1, 243, 000 505, 978 $2. 792, 670 2, 973, 000 1,474,993 $1, 649, 633 1925.. 1, 730, 000 Connecticut: > 1927 969, 015 1 There were 6 establishments in Connecticut in 1925. Replies: to special inquires were received from eight New England establishments making lace, representing a total employment of 384 workers and sales in 11)25 of $1,750,000. Three of these concerns were located in Rhode Inland. 3 in Connecticut, and 1 each in Massa- chusetts and New Hampshire. All these concerns were of compara- tively recent origin, the oldest one being only 15 years under its pres- TEXTILES 331 ent management. Several made supplementary products in addition to lace, the principal ones being curtains, bedspreads, woven trim- mings, edgings, fancy braids, and the finishing of silk piece goods. Five of these concerns had individual sales of less than $100,000, and three of them did a volume of business between $200,000 and $400,000 each. Only two companies gave employment to more than 50 persons each. The aggregate sales volume of these eight concerns was $1,809,000 in 1923, $1,472,000 in 1924, and $1,750,000 in 1925. Five of the com- panies reported operations in 1925 at less than one-half their maxi- mum capacity and three had from 50 to 85 per cent of maximum. The largest firm reporting, and the only large company whose sales showed a continuous growth, increased its business by the addition of silk finishing to its main line of lace making. Reasons generally given for decreased sales were the lessened de- mand for laces for wearing apparel and household fabrics and the competition from the low-cost imported goods. One manufacturer says, " Women wear much less lace, and it can be imported cheaper than we can make it." Several reported that they made no sales in New England, and all but one indicated that New England sales represent only a small por- tion of their business. The principal sales channels are through wholesalers and the cutting-up trade to dress and hat manufacturers and to embroiderers. Sales are made largely through New York City. One small firm expressed the intention of selling by mail direct to consumers. As regards improvements, one of the three large concerns reported a consolidation of selling activities, while another had introduced new sales methods and new products, and a third small establishment spoke of emphasis upon better quality and a lessened cost of production. Curtains and draperies. — The manufacture of goods in which lace is an important material shows some interesting contrasts with the making of lace itself. Replies from concerns making lace curtains, scrim, marquisette, and novelty curtains, overdrapes, and curtain piece goods showed aggregate sales of 12 reporting companies amounting to $4,219,000 in 1923, $5,111,000 in 1924, and $6,886,000 in 1925. Ten of these companies were located in eastern Massa- chusetts and one each in Connecticut and Rhode Island. Five of them had been in business 10 years or less, 5 others between 10 and 20 years, and 2 more than 25 years. With one exception all had been under the same management since their start. Two of the establish- ments reported individual sales of less than $100,000 and 6 as be- tween $100,000 and $500,000, while 2 large concerns had sales between $500,000 and $1,000,000, and 1 more than $3,000,000. The average employment of 5 of these concerns was fewer than 50 persons, of 5 others between 50 and 100 persons, while the largest company had 650 workers on its pay roll. Two of the concerns reported making piece goods and sheeting in addition to curtains. Of 10 replies regarding the ratio of 1925 output to maximum capac- ity, 5 concerns were running at full capacity, 4 at 75 per cent to 80 per cent, and 1 at 60 per cent. Eight of the concerns had 332 INDUSTRIAL STEUOXUBB pF XKW KNGLAND a continuous net increase of sales from 1923 to 1925, and there were 10 whose sales showed an increase since 1924. In comparison with the cotton-lace industry, therefore, these manufacturers of curtains and other lace products showed decided prosperity. Five companies indicated that the greater part of their product was sold in New England, while 9 indicated that not more than one- third of their sales were in those States. Five companies had their principal market in the Middle Atlantic States and 4 reported national distribution ; others mentioned market outlets in the Middle West, the Southern States, and the far Western States. Three man- ufacturers stated that their New England sales were on the increase, and one of these indicated a marked growth of business in that sec- tion. A maker of ruffled curtains stated that he thought t >.e Middle West a better selling market. Decreased sales in New England were reported as due to a change in selling policy, while another manu- facturer stated that the demand for low-cost goods had decreased his New England sales. The majority of the manufacturers in this line sell their products direct to retailers ; 10 replies indicated this channel, while 2 reported sales to wholesalers. Several manufacturers stated that their entire output was branded, while two made no use of trade-marks. The employment of advertising was reported by six companies, mainly in the form of trade journals or direct mail, with the use of local news- papers in one instance. Increased sales by the manufacturer of novelty curtains selling throughout New England and the United States were attributed to " hard work by salesmen, volume buying, and close selling." One of the concerns, operating at full capacity and doing a national business, with its principal market in the Middle West, credited its continued increase of business to " continued ' pep '," while another manufacturer frankly blamed the small volume of his New England sales upon his own lack of effort to cultivate the market. The treasurer of a large and growing concern making marquisette curtains, scrims, and sheetings, whose business more than doubled since 1923, reports as follows regarding the marketing practice of his company : Our organization is a growing concern with a new idea. We have our own selling organization, which sells direct to jobbers and to the large retailers who do not buy through jobbers. Our salesmen are mostly paid a salary, although some have a commission which covers all their expenses. We dis- tribute the salesmen over the different territories, 1 taking the Pacific coast, 3 dividing up the Western States, 1 in the Southern States, 3 in New York and the Central States and Canada, and 2 in Massachusetts. Besides these, two officers of the corporation are salesmen, who operate generally without specific territories. Another medium-sized concern manufacturing curtain materials maintains a salesroom and display department in New York City. From the replies of manufacturers of curtains and curtain goods, this industry appears to show pronounced prosperity. It affords an example of success attained by catering to the popular demand for a new type of manufactured product, which can be marketed by direct merchandising methods, TEXTILES 333 WOOL MANUFACTURES RELATIVE IMPORTANCE OF INDUSTRY Although the wool manufactures of New England are surpassed in volume by cotton manufactures, the former are of much greater national significance. New England contains approximately one-half of all the wool-manufacturing establishments of the United States and contributed 54 per cent of the value of the national output in 1925. In the manufacture of woolen and worsted goods, which are its principal wool products, New England contributed 64 per cent of the total value and 65 per cent of the national income from this branch of manufacture. The wool manufactures contributed 11 per cent of the total value of all manufactured products of this region in 1925 and represented about 8.5 per cent of the total New England income derived from all manufacturing activity. The 538 New England wool establishments added to the revenue of the region not far from $250,000,000, and their product had a value exceeding $660,000,000. Of this income more than $153,000,000 was distributed in wages and salaries to some 120,000 persons who were engaged in its various activities. The importance of the va- rious lines of wool manufacture in 1925 and 1927 is indicated by the following table. Wool Manufacture in New England. 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars Commodity and year Wages Cost of materials Value of products Value added by manu- facture 1 Woolen and worsted: 1927 418 443 10 9 17 18 26 36 12 12 102, 458 106, 155 4.473 4,427 1,249 1,229 667 662 568 544 117, 565 142, 996 5, 613 5,668 1,559 2,004 815 1,161 859 973 333 041 394, 063 10, 638 12, 027 6,679 7,470 2, 585 3,474 688 880 543,304 614, 936 22, 680 23,883 10, 653 11, 938 4,298 5,216 1,094 2,398 210, 264 1925 1 220, 274 Carpets and rugs: 1927 12, 043 1925 2 11, 836 Felt goods: 1927 3,974 1925 3. . 4,469 Reworked wool: 1927 1,712 1925 4 1,743 Wool scouring: 1927 405 1925 5 1,518 Total: 1927 483 518 1,044 49.6 109, 415 113,017 207, 586 54.4 126, 410 152, 802 283, 335 53.9 353, 632 418, 514 768, 391 54.5 582, 029 658, 371 1, 217, 322 54.1 228, 397 1925 6 239, 860 Total United States, 1925 448, 879 New England as per cent of United States in 1925 53.4 1 Excluding 4 worsted establishments in New Hampshire and 1 in Vermont. 2 Massachusetts only, excluding 1 establishment in Connecticut. 3 Excluding 2 establishments in Maine, 2 in New Hampshire, and 2 in Rhode Island. 4 Excluding 2 establishments in Maine and 2 in Vermont. 5 Excluding 1 establishment in Connecticut and 1 in Rhode Island. 6 Exclusive of 20 establishments. The principal item, woolen and worsted goods, represents over 90 per cent of all New England wool manufactures, with a product approximating $615,000,000 in gross value in 1925 and a contribution of more than $220,000,000 to the income of the region. In this branch 334 INDUSTRIAL STRUCTURE OF NEW KXOLAND there were 448 establishments, which engaged the activities of more than 111,600 persons. There were also 40 concerns for reworking wool and 14 establishments engaged in wool scouring. / i \ X 5' 1 WmWSW'1 1 Ji pi) W • * ,-L-^ tGRAFTOt • \C r ' P W <'t-i|*/ U. ♦ (|j| • BCnnino r aJ—~_^— 'l 1 ' " V*' Steffi: LOCATION OF ESTABLISHMENTS » MAKING 23 WOOLEN and WORSTED GOODS W FRANKLIN \v*OR \£VDDLCS£X # \l^J * • « li : : /Yrr^i • • • ' : '*'. *• ^ : vera 1 ** NEW ENGLAND STATES 1927 1 § . J^) HA^P&HF^*- -) * * • * ' j^DOK AND FIGURES SHOH NUMBER IN EACH COUNTY LiTCHFifLD ]^-/ufirropc\ r() '- l * N f-^ WIND. , y B ARN5rABU 1 x's' (ba4'tzo-4i) Figure 40 Besides these there were 2G concerns making felt goods and felt hatfi from wool and hair, with a product exceeding $12,000,000 in value. The manufacture of wool carpets and nigs was represented by 10 concerns, with a product estimated at more than $25,000,000 in value. TEXTILES 335 MATERIALS USED The wool industries of New England in 1925 provided a market for materials, including fuel, power, and supplies, in addition to the fibers directly used in manufacture, amounting to about $420,000,000. New England wool industries absorb more than one-half of the total raw wool consumed within the United States, The proportion in 1925 was 51 per cent; in 1919, 54 per cent; and in 1914, 52 per cent. Slightly more than one-half the wool in the grease purchased for New England manufacture in 1925 was of domestic origin, and slightly less than one-half came from foreign countries. These pro- portions reflect, in general, the sources for the country as a whole, although imported stocks in 1925 made up more than half the total national consumption. In addition to raw wool the industry pro- vides a market for a considerable volume of animal hair, cotton, re- covered wool fiber, waste and noils, silk, and an increasing quantity of rayon, as well as substantial quantities of yarns. The importance of the specific materials purchased for manufacture by New England mills in 1925, and also in 1919 and 1914, is indicated in the following table, which gives all the figures that are available for separate States, Principal Materials Used in New England Wool Industries in 1925, 1919, and 1914 [Thousands of pounds] Material and States included Wool, in condition as purchased (Massachusetts, Rhode Island, Connec- ticut, New Hampshire, Maine) : Total Domestic Foreign U. S. total Domestic Foreign Wool equivalent in scoured condition (Massachusetts, Rhode Island, Connecticut, Maine, New Hampshire): Total _.. U. S. total Waste and noils of wool mohair, etc. (Massachusetts, Maine, New Hamp- shire, Connecticut, Rhode Island): Total U. S. total Recovered wool fiber (New Hampshire, Massachusetts, Maine, Connec- ticut, Rhode Island): Total U. S. total -. Cotton (Massachusetts, Maine, New Hampshire, Rhode Island): Total U. S. total ____ Tops, purchased (Massachusetts, Rhode Island): Total U. S. total Animal hair (Massachusetts, Maine): Total . U. S. total Yarns, purchased (Massachusetts, Connecticut, Rhode Island, Maine, New Hampshire) : Total U. S. total 1925 1919 274, 644 143, 044 131, 600 555, 263 261, 893 293, 370 » 266, 684 :1 137, 131 i 129, 552 491, 728 253, 838 237, 890 169, 704 351, 067 i 164, 387 295, 388 37, 986 59, 815 4 26, 469 51, 481 29, 356 40, 345 5 24, 887 37, 532 19, 166 40, 188 6 9, 727 22, 683 32, 585 46, 360 18, 852 26, 467 14, 125 69, 518 s 15, 489 54, 340 80, 682 237, 579 60, 074 171,915 2 262, 768 « 149, 198 i 113, 570 502, 857 277, 588 225, 269 * 157, 603 307, 706 * 19, 553 50, 350 I 13, 574 30, 159 s 17, 004 35, 307 19, 332 29, 178 * 9, 200 44, 131 72, 801 214, 451 1 Excluding 6 establishments. 2 Excluding 7 establishments. 3 Excluding 3 establishments. 1 Excluding 4 establishments. > Excluding 2 establishments. 5 Excluding 1 establishment. 336 INDUSTRIAL STRUCTURE OF NEW ENGLAND Principal Materials Used in New England Wool Industries in 1925, 1919 and 1914 — Continued [Thousands of pounds] Material and States included 1925 1919 1914 Yarns purchased (Massachusetts, Connecticut, Rhode Island, Maine, New Hampshire) — Continued. Worsted (Massachusetts, Rhode Island, Connecticut)— Total 35, 353 53, 820 3,337 37, 246 24, 093 52,001 7,882 85, 460 1,598 2,543 215, 304 718, 845 30, 124 47, 127 3,316 25, 759 6 23, 119 46,039 2,938 47, 389 6,848 39, 990 243, 463 542, 587 3 38, 528 62, 895 U. S. total Woolen (Massachusetts)— Total 3,986 U. S. total 23, 802 " 23,410 Cotton (Massachusetts, Connecticut, Maine, Rhode Island, New Hampshire)— Total ■_ U.S. total . 56,988 4,790 Jute and other (Massachusetts)— Total U. S. total 61, 653 ( 8 ) Rayon (Massachusetts)— Total U. S total ( 8 ) Silk and spun silk (Massachusetts, Rhode Island): Total T 311,778 U. S. total 794, 693 3 Excluding 3 establishments. 6 Excluding 1 establishment. 7 Excluding 5 establishments. 8 Figures not available. Note.— The table includes only data for States for which separate statistics are available. BOSTON WOOL MARKET Boston is the leading wool market of the United States and of the Western Hemisphere, and is outranked in total volume of sales only by London. Through the Boston market flows over 60 per cent of the wool consumed in the United States. Outside of Boston, next in importance is Philadelphia, and lesser market centers are Chicago and St. Louis. Philadelphia is especially important as a market for carpet wools. Although attempts have been made to develop wool- marketing centers in New York and Chicago, these places have never been able to cope with the advantages that have built up Boston's dominant j:>osition. The preeminence of Boston as a market for raw wool is the logical result of its economic position. This is the most con- veniently located center with respect to wool consumption. Prac- tically all the large wool mills of New England are within a day's rail or trucking distance from Boston. There is an unusual combi- nation of port facilities and storage capacity, with abundant ware- house space adjacent to tidewater for receiving and storing both foreign and domestic wool. Boston has sufficient warehouse space at the water front for an entire year's wool clip of the United States. Numerous public warehouses are available for storing im- ported wool, which is graded, for the most part, in the country of origin. In handling the domestic- clip, where large floor space is required lor opening and grading the wool, the great private ware- house- are available. On account of the great variation in grades of wool, not only be- tween fleeces hut, even in the same fleece, precise grading is necessary. The stocks of wool for consumption in the United States are there- fore concentrated in two or three wool centers, where they are TEXTILES 337 classified and held in stock after grading, to be drawn upon as needed by the manufacturers. Actual inspection before purchase is the general practice in the wool market ; hence, it has been found difficult to adhere to fixed standards as a basis for trading. No success has been attained in establishing a market for wool futures as has been done in cotton futures. The Boston wool market not only serves as a reservoir for sup- plying the manufacturer's needs but also serves largely to finance the wool clip of the entire country. A large part of the United States production is handled by dealers on a consignment basis. This usually means a cash advance to the growers, running up to 60 per cent of the value. The cooperative marketing of wool by the growers is as yet relatively unimportant. According to the United States Department of Agriculture, a total of only about 20,000,000 pounds of domestic wool was marketed through growers' coopera- tives in 1927, representing approximately 6 per cent of the United States wool clip of that year. The importance of the Boston wool market in the country's wool industry is indicated in the following table of annual wool con- sumption in the United States, and of Boston receipts and ship- ments, as compiled by the Boston Grain and Flour Exchange. United States Consumption of Wool, 1918-1927, and Shipments and Receipts at Boston, 1914-1927 Year Total annual United States con- sumption of foreign and domestic wools (grease equivalent, in thousands of pounds) Domestic Foreign Total Annual receipts and shipments of wool at Boston (grease-wool re- ceipts, in thousands of pounds) Domestic Foreign Total Shipments reported, all wools, thousands of pounds 1927. 1926 _ 1925 _ 1924 _ 1923- 1922 _ 1921 _ 1920_ 1919_ 1918. 1917_ 1916. 1915_ 1914_ 311,505 248, 525 265, 326 281, 964 249, 920 374, 666 290, 283 251. 295 304, 651 293, 142 240, 023 261, 508 260, 959 255, 796 391, 688 279, 460 239, 211 327, 543 322, 233 448, 575 551, 52S 510, 033 526, 285 537, 760 641, 608 654, 126 529, 494 578, 838 626, 884 741, 717 218, 189 169, 270 131,447 200, 239 144, 137 190, 952 143, 720 105, 707 213. 905 183, 297 210, 125 205, 195 181, 701 190, 731 123, 359 177, 661 174, 173 121, 785 271, 966 242, 856 199, 352 168, 357 265, 112 320,180 296, 461 234, 998 247, 914 144, 145 341, 549 346, 931 305, 619 322, 025 416, 103 433, 808 343, 072 274, 063 479,017 503, 477 506, 586 440, 193 429, 615 334, 876 199,725 201, 182 168, 403 170, 993 148. 880 102, 458 115, 197 136, 040 149, 646 200, 558 279. 851 302, 868 272, 473 267. 149 The wool dealers play an important part also in financing the manufacturers. The prevailing terms of sale to the mills provide for payment in 60 days. The financing of these wool stocks to the growers as w T ell as to the mills is done through Boston banks, largely with notes and on personal security rather than through the use of warehouse receipts. The large financial resources of Boston banks and the prestige which wool dealers enjoy with them thus constitute an important factor in the operation of the wool market. The number of wool dealers and brokers in the Boston market is estimated to be about 300. The bulk of the domestic business is now carried on by 25 or 30 large houses. The generally depressed condition of wool manufactures since 1923 has naturally affected the activities and the prosperity of these dealers in the wool market. 338 INDUSTRIAL STRUCTURE OF NEW ENGLAND The Boston wool market handles not only foreign and domestic grease wool but also semimanufactures, consisting of tops, noils, and waste. Most of the large New England mills find it to their ad- vantage to do their own wool scouring, but some independent estab- lishments adjacent to the wool market do scouring for manufacturers or dealers on contract. A great deal of raw wool now moves from the Boston market to the mills by motor truck. The large mills have their own fleets of trucks and buy the wool f . o. b. Boston, thus enabling them to obtain immediate deliveries of the size of shipment desired for current manufacture. Many mills carry small stocks and depend upon the wool dealers to meet their current requirements, especially in the recent years of short-order buying. The market thus, in addition to warehousing and grading the wool, performs the important function of financing and holding it for the manufacturer's needs. The wool manufacturers of the country have in recent years be- come better organized than heretofore, as is evidenced in the for- mation of the Wool Institute. Through their various associations the woolgrowers of the country have likewise been strengthening their marketing position by organized effort. The wool dealers who stand between these two groups have thus far shown little tendency to organize their activities in concerted effort. The prevailing method of trading is by private individual sale. PRINCIPAL PRODUCTS The suitings, dress goods, overcoatings, and cloakings made by New England mills represented approximately two-thirds of the national value in 1925 and comprised about 60 per cent of the value of all New England wool manufactures. The value of wool yarns produced for sale in the four principal producing States of this section represented more than 53 per cent of the United States total for wool yarns in that year and comprised upward of 18 per cent of the value of all wool manufactures of New England. The quantity and value of the principal wool products in 1925, 1923, and 1921 are shown in the following table, as far as is possible to present indi- vidual State figures. Although not to be regarded as complete, this table indicates, for the major fabrics, New England's position in the United States production. Principal Products of New England Wool Industries, Quantities and Values, 1925, 1923, and 1921 [All figures in thousands] Product and State 1925 1923 1921 Baitings, dress goods, overcoating, find cloakings (Massachusetts, Rhode [Bland, Maine, Connecticut, New Hampshire): i 180, 076 315, 897 $372, 750 i $566, 675 66, 961 $112,969 $211,537 2 212, 395 342, 901 $437, 395 2 $057, 308 76, 202 $128,027 $253, 496 3 165, 262 304, 437 \' ;) |lir. $335, 996 3 $501,895 for sale (Rhode Island, Massachusetts, Maine, Connecticut): 55, 572 $81,368 U. 8. value $161, 427 i Exclusive of 2 establishments. 3 Exclusive of 1 establishment. 2 Exclu Mishments. TEXTILES 339 Principal Products of New England Wool Industries, Quantities and Values, 1925, 1923, and 1921— Continued [All figures in thousands] Product and State Satinets and linseys (Massachusetts): Pounds Square yards Value U. S. value Blankets, cotton warp 4 (Maine): Pounds Square yards Value -- U. S. value Other woolen and worsted woven goods (Massachusetts, Maine, Connecticut, New Hampshire): Pounds S quare yards Value U. S. value Carpets and rugs (Massachusetts): Square yards Value _- U. S. value Felt goods (Massachusetts, Connecticut): Pounds Value U. S. value.... Noils and wool waste (Massachusetts, Rhode Island): Pounds Value . U. S. value Other products and amounts received from contract work (Massa- chusetts, Rhode Island, Connecticut, Maine): Value U. S. value 1925 3, 815 6,136 $2, 208 $4, 244 4,543 7,849 $3, 218 $7,411 28, 820 51,591 $58, 032 $84, 832 8,392 $23, 368 $183, 008 11,954 $11,437 $40, 591 26, 967 $10, 806 $18, 167 $32, 432 $62, 513 1923 2,313 3,631 $1, 280 $2, 278 2,049 3, 526 $1,412 $6, 149 30, 303 64, 876 $51,548 $75, 479 9,687 $23, 316 $192, 157 16, 529 $12, 297 $39, 889 32, 761 $11, 778 $19, 362 $25, 831 $48, 240 1921 1,417 2,737 $864 $1, 525 1,888 3,067 $1, 506 $6, 109 15, 368 39, 051 $30, 063 $44, 499 8,330 $10, 824 $100, 038 8,685 $7, 130 $22, 399 22, 637 $5, 959 $9, 587 $17, 700 $29, 228 4 Not including horse blankets. Note.— This table includes only data for States for which separate statistics are available. WOOLENS AND WORSTEDS EARLY DEVELOPMENT Wool manufacturing has had quite a different history in the United States from that of cotton manufacture because of different de- velopments in the manufacturing processes. Wool products form two distinct classes of goods, based upon different processes in spin- ning the yarn, which result in different types of fabrics. The proc- esses of weaving are practically the same for both. Goods made from yarn which hasi been prepared for spinning by carding the wool fibers form woolen fabrics. When combing processes are used to make the wool fibers lie parallel so as to permit spinning a hard, firm yarn, the product is known as worsted. The processes of manu- facture for these two types of yarn are quite distinct and require very different kinds of machinery. The early development of wool manufactures was mainly in the making of woolen goods. Worsteds did not attain commercial im- portance until after the invention of power machinery for combing wool — about 1860. Weaving of woolen cloth was a household industry until well after the beginning of the nineteenth century. The early wool mills were the outgrowth of fulling mills, which had been established as small local enterprises to prepare the coarse homespun cloth for wear by special processing. Fulling mills date from 1643, when the first one in New England was established at Rowley, Mass, Various others followed in Connecticut, New Jersey, Pennsylvania, 340 INDUSTRIAL STRUCTURE OF NEW ENGLAND and Virginia. The first fulling mill to utilize water power was set up in Byfield, Mass., in 1794. The first American wool mill containing more than a single loom was established at Hartford, Conn., in 1788. This was soon followed by several others, and by 1810 there were 24 wool mills in the United States. These were all small concerns, the largest establishment making wool cloth, located at Humphreysville (now Seymour), Conn., giving employment to 150 people. After the war of 1812 small wool mills appeared everywhere in the United States and in the western Territories. The early wool-manufacturing industry, however, had a short-lived prosperity because of the competition of imported British goods. The outstanding development of wool manufacturing as a New England industry dates from shortly before the Civil War period. Notable changes then took place in types of raw wool available for manufacture and in processes for making wool cloth. Previously almost all the wool yarn was made directly from carded stock, and not combed, first, because of the lack of long-stap]e wool in this country suitable for combing, and, second, because of the lack of combing machinery. The reciprocity treaty with Canada, which was in force from 1854 to 1866, gave this country a supply of long- staple wool, and about the same time a power wool -combing machine was invented by the British. The first wool-combing machine in the United States was set up at Lawrence, Mass., in 1854. Prior to 1860 there were only three large producers of worsteds in New England. The Civil War was a great spur to the manufacture of worsted as a material for army uni- forms. The scarcity of cotton also stimulated the use of wool in its place, and many cotton mills, finding themselves short of raw cotton, turned to the manufacture of worsteds. Some of these con- tinued making worsteds after the war. The discontinuance of the Canadian reciprocity treaty cut off the supply of Canadian long- staple wool, but the development of improved machinery for clean- ing wool, as well as the perfecting of combing machinery, made Argentine wools available for worsted manufacture. Because of these improvements in machinery, almost all types of wool could be combed by 1900, and could thus be used in the manufacture of worsteds. There was a continuous contest for many years between carded and combed fabrics as material for making men's clothing, but by 1890 the leadership of worsteds over woolens was definitely established; and by 1909 twice as much wool was used in worsted manufacture as in all other branches of the wool industries. Since the World War, however, woolens have increased in popularity at the expense of worsted fabrics. The first worsted mills were large ventures, capitalized at about $1,000,000 each. The average investment per mill between 1870 and 1923 ranged from $100,000 to $500,000, while the investment in individual woolen mills rarely exceeded $100,000. In numbers of wage earners as well as output the worsted mills exceeded the woolen mills from three to five times. The manufacture of worsted goods is thus carried on mainly in large units, while the milJs making woolen goods are much smaller. The worsted mills of the country are now concentrated principally in Massachusetts, Rhode Island, Pennsylvania, and New Jersey; a TEXTILES 341 few are located in Maine, Connecticut, and New York. The leading cities in this line are Lawrence, Providence, Philadelphia, and Passaic. The worsted industry is more localized than is cotton man- ufacture, and it is more complete in its organization ; the raw material is received and completely fabricated into cloth, generally in one organization. Worsted manufacture duplicates the mechanical proc- ess of cotton manufacturing more closely than does woolen. In the worsted industry labor-saving machinery has been installed much more generally than has been possible in the woolen mills. Men outnumber women in woolen manufacture by a large margin, while in the worsted manufacture more women are employed than men. Although the carded-wool business now has three times as much capital invested as in 1860, when it was supreme in wool manu- factures, it has yielded place definitely to combed wool. Woolens have come into increased importance, however, in the past few years. New England's position in the national output of these two lines of wool manufacture is approximately the same, its proportion of woolens being 63.7 per cent in 1925 and of worsteds 64.5 per cent. Although the number of woolen mills in New England was much greater than the number of worsted mills, the volume and value of worsted goods produced in this region was greatly in excess of the product of the w r oolen mills. The number of mills, however, is not significant. In number of establishments the New England woolen mills outnumbered the worsted mills by nearly 100, but in value of output worsteds exceeded woolens by more than $150,000,000. In 1925 there were 273 woolen mills, which employed 45,800 workers and added to the New England income some $91,000,000; but 170 worsted mills employed 65,700 workers and added to the New Eng- land income $129,000,000. In general, the size of woolen mills was thus much smaller than that of worsted mills, the average number of employees per woolen mill being 160, while for worsted mills it was 369. GEOGRAPHIC DISTRIBUTION The geographic distribution of these two branches of wool manu- facture varies sharply in the different States, the proportion of woolen mills being much greater in the three northern States than in the rest of New England. According to the Biennial Census of Manufacturers for 1925, there were in Vermont 16 woolen mills and only 1 worsted mill; in New Hampshire, 35 woolen mills and 4 worsted mills ; in Maine, 53 woolen mills and 9 worsted mills; while Connecticut had 35 woolen mills and 14 worsted mills. In Rhode Island, however, the worsted mills predominated in number as well as in importance, with 66 establish- ments employing nearly 19,000 workers, in contrast with 28 woolen mills with fewer than 3,300 workers. In Massachusetts there were 81 worsted mills, which employed about 36,800 workers, while there were 106 woolen mills in the State which employed slightly more than 18,000 workers. At different periods there have been pronounced contrasts between woolen mills and worsted mills in the number of establishments. The number of woolen mills showed a pronounced reduction in the years preceding 1914, from 350 in 1900 to 235 in the latter year. During 61232°— 30 23 342 INDUSTRIAL STRUCTURE OF NEW ENGLAND the World War, however, the number of woolen mills increased ma- terially, rising to 287 in 1919; from this the number fell off to 255 in 1921, but increased to 273 in 1925. The number of worsted mills shows almost an opposite trend, increasing from 109 in 1900 to 164 in 1914. During the war, however, the number fell off to 154 in 1919. This was followed by a postwar increase to 166 in 1921 and to 173 in 1923. There were 170 New England establishments making worsted goods in 1925. LOCALIZATION WITHIN NEW ENGLAND Approximately one-half of the total income of New England de- rived from woolen and worsted manufacture in 1925 was contributed by Massachusetts plants. Yet in Massachusetts wool manufactures represent less than 7 per cent of the State's total income for manufac- turing. It is of approximately equal importance in Rhode Island and in Maine, representing in each instance about one-sixth of the State's total manufacturing income. Incomplete data indicate that wool manufactures of New Hampshire contribute about one-tenth of the State's total income from manufactures, and in the case of Vermont about one-twelfth. The following table shows the status of woolen and worsted manu- factures in the individual States, and New England's position in the national industry. Woolen and Worsted Manufactures in Individual States of New England in 1925 Estab- lishments Persons engaged Wages and salaries, in thou- sands of dollars Cost of materials, in thou- sands of dollars State and item Total Wage earners Massachusetts: Woolen and worsted.. 187 106 81 94 28 66 62 53 9 49 35 14 35 4 16 1 57, 610 19, 070 38, 540 23, 331 3,470 19, 861 12, 314 7,739 4,575 9,588 6, 852 2,736 5, 632 54, 876 18, 091 36, 785 22, 206 3,283 18, 923 11, 789 7,305 4,575 8,897 6,470 2,427 5,363 73, 021 26, 735 46, 286 28, 559 5,251 23, 308 16, 542 11,018 5,524 13, 335 9,482 3,853 7,493 200, 289 Woolen 54, 725 Worsted 145, 564 Rhode Island: Woolen and worsted _ 99, 707 Woolen . 13, 866 Worsted 85, 841 Maine: Woolen and worsted 37, 432 Woolen.. 24, 486 Worsted 12, 946 Connecticut: Woolen and worsted... 30, 816 Woolen 19, 541 Worsted 11, 275 New Hampshire: Woolen 17, 110 Worsted Vermont: Woolen 3,070 2,933 4,046 9,309 Worsted New England: Woolen and worsted 443 273 170 832 503 329 68. 2 54. 3 51.7 111,545 45, 833 66,712 174, 708 71,044 103,664 83. 8 64.5 63.4 106,155 43, 445 62, 710 165, 224 67, 056 98, 168 64.2 64.8 63.9 142, 996 64, 025 78, 971 220, 170 94, 673 125, 497 64.9 67.6 62.9 394, 663 Woolen 139, 037 Worsted 255, 626 United ' Woolen and w or tted 620, 402 Woolen 219,618 Wonted 400, 784 New England be per cent of United states: Woolen and worsted 63.6 Woolen 63.3 Wonted .- 63.8 TEXTILES 343 Woolen and Worsted Manufactures in Individual States of New England in 192f — Continued Value of products Value added by manufacture State and item Thou- sands of dollars State as per cent of New England total Per cent of total manufac- tures in State Thou- sands of dollars State as per cent of New England total Per cent of total manufac- tures in State Massachusetts: Woolen and worsted.. __ 309, 528 93, 080 216, 448 146, 646 21, 142 125, 504 64,923 40, 002 24,921 50, 605 32, 748 17, 857 28,906 50.3 9.0 109, 239 38, 355 70, 884 46, 939 7,276 39, 663 27, 491 15, 517 11, 975 19, 789 13, 207 6,582 11, 796 49.6 6.7 Woolen Worsted ___ _ Rhode Island: Woolen and worsted 23.8 23.6 21.3 17.0 Woolen . Worsted . _ Maine: Woolen and worsted __ _ _. _ __ 10.6 17.5 12.5 16.5 Woolen __ Worsted ._. _______ Connecticut: Woolen and worsted .__ _ 8.2 4.0 9.0 3.0 Woolen _ _ Worsted New Hampshire: Woolen _ _ __ 4.7 8.8 5.4 8.7 Worsted Vermont: Woolen ___ ___ 14, 328 2.3 10.4 5,019 2.3 7.9 Worsted New England: Woolen and worsted 614, 936 230, 206 384, 730 957, 790 361, 524 596, 266 64.2 63.7 64.5 100.0 10.0 220, 274 91, 170 129, 104 337, 389 141, 906 195, 483 65.3 64.2 66.0 100.0 7.5 Woolen Worsted United States: Woolen and worsted 1.5 1.3 W r oolen Worsted _ ___ New England as per cent of United States: Woolen and worsted Woolen Worsted MACHINERY USED The number of cards, wool-combing machines, spindles, looms, and other equipment used in woolen and worsted manufactures in each State of New England, as reported for 1925, is shown in the following table. Machinery Used in New England Wool Industries in 1925 State Cards Wool- combing machines Producing spindles Power looms Pickers Garnett machines Massachusetts 1,583 284 556 438 562 134 991 491 31 96 36 4 587, 153 132, 656 214, 415 147, 044 217, 599 63, 563 32, 735 8,580 5,576 4,147 5,183 1,793 317 44 82 57 132 47 54 Rhode Island.. ._ 8 Connecticut — 22 New Hampshire. . . 4 Maine 6 Vermont 4 New England 3,557 6,140 57.9 1,649 2,733 60.3 1, 362, 430 2, 258, 436 60.3 58, 014 90, 841 63.9 679 1,125 60.4 98 United States... 206 New England as per cent of United States 47.6 344 INDUSTRIAL STRUCTURE OF NEW ENGLAND An indication of the extent to which this equipment has been used in active production is afforded by the following table, which shows for the country as a whole the activity of wool-working machinery in each year from 1923 to 1927, as a percentage of maximum capacity. This table shows that in the past few years the available equipment has been far in excess of that employed in actual production. Activity of Wool- Working Machinery in the United States 1923-1927 [Average total hours operation expressed as percentage of maximum single-shift capacity] Year Broad looms Narrow looms Carpet and rug looms Cards Combs Spinning machines Woolen Worsted 1927 61.9 62.7 69.0 68.5 82.5 63.0 60.6 63.6 61.6 76.2 64.1 63.5 71.8 65.9 82.2 79.5 77.1 85.5 88.1 98.5 80.0 78.7 77.2 80.0 97.4 77.7 73.3 34.6 85.0 92.1 67.0 1926 69.0 1925 66.3 1924 65.8 1923 91,5 Source: U. S. Bureau of the Census. The amount of machinery in active operation has been undergoing considerable reduction. The total number of looms in active opera- tion in 1928 and their distribution in the different States of the Union, as compiled by the Wool Institute, are shown below. According to these recent figures there were 64,700 power looms in regular opera- tion in the woolen and worsted mills in the country in 1928, and of this number there were 44,857 in the six New England States. Power, Looms in Operation, July, 1928 New England : Total 44, 857 Massachusetts 28, 469 Rhode Island 5, 910 New Hampshire 3,303 Connecticut 3, 153 Maine 3, 039 Vermont 983 Outside New England : Total— 19, 843 New Jersey 6, 432 Pennsylvania 6, 171 New York 2,009 Ohio 1, 988 Tennessee 712 Outside New England — Contd. Georgia 361 Wisconsin 309 South Carolina 301 Indiana 301 Illinois 225 Michigan 210 Oregon 198 Virginia 196 Maryland 172 West Virginia 82 California 67 Minnesota 56 Utah 53 Total United States 64,700 TREND OF MANUFACTURE Throughout the 45-year period from 1880 to 1925 New England has maintained, quite uniformly, its national position as a maker of woolens and worsteds. The total number of establishments in this section was exactly the same in 1025 as in 1909. There was a net increase after the World War — from 421 establish- ments in 1021 to 418 in 1025. The year of greatest activity, as shown by the number of persons engaged, by the outlay for materials, and by the 'value of the product, was 1023. Although the activity in 1925 TEXTILES 345 was greater than in 1919, it showed a substantial reduction below the maximum attained in 1923. The trend of activity is indicated by the following table, giving statistics for each census year. It should be borne in mind that no account is taken of changes in the value of the dollar in different years. New England Compared with the Rest of United States in Woolen and Worsted Manufactures, 1880-1925 Establishments Persons engaged Salaries and wages New England United States outside New England New England United States outside New England New England as per cent of United States Thousands of dollars New Census year New England United States outside New England England as per cent of United States 1925 1 443 441 421 424 382 448 454 459 485 529 389 410 393 428 417 537 564 762 969 1,537 111, 545 129, 394 109, 939 111, 173 103, 955 110, 176 92, 150 76, 009 69, 113 59, 712 63, 663 75, 242 61, 939 65, 000 60, 735 64,688 54, 360 54,456 53, 831 45, 595 63.7 63.2 63.9 63.0 63.1 62.9 62.9 58.3 56.2 56.7 142, 996 164, 705 130, 948 127, 923 56, 147 53, 828 40, 686 31, 034 26, 193 18, 829 79, 681 89, 355 70, 294 71, 168 30, 353 28, 696 20, 747 19, 092 18, 166 35, 486 64.2 1923 2 --- 64.8 1921 3 65. 1 1919* 64.3 1914 6 _ 64.9 1909 6 65.2 1904 " 66.2 1900 8 .-- 61.9 1890 9 59.0 1880 41.5 Cost of materials Value of products Value added by manufacture Thousands of dollars New England as per cent of United States Thousands of dollars New England as per cent of United States Thousands of dollars New year New England United States outside New England New England United States outside New England New England United States outside New England England as per cent of United States 1925 1 1923 2 192H 1919 4 1914 5 1909 6 19047 19003 1890» 1880 394, 662 399, 121 270, 004 424,069 154, 201 177, 176 129, 896 90, 631 77, 927 71, 703 225, 740 223, 611 130, 042 241, 526 92, 296 105, 702 67, 593 57, 456 55, 050 111,413 63.6 64.1 67.5 63.7 62.6 62.6 65.8 61.2 58.6 39.2 614, 936 687, 530 488, 406 675, 495 237, 388 275, 648 201, 315 146, 364 124, 658 116, 355 342, 854 375, 028 267, 178 389, 939 142, 096 160, 331 106, 627 92, 381 88, 115 177, 830 64.2 64.7 64.6 63.4 62.6 63.2 65.4 61.3 58.6 62.6 220, 274 288, 409 218, 402 251, 426 83, 188 98, 473 71, 419 55, 733 * 46, 730 44,652 117, 114 151,417 137, 136 148, 413 49, 800 54, 629 39, 033 34, 924 33, 066 26, 645 58.4 65.6 61.4 62.9 62.6 64.3 64.7 61.5 58.6 62.6 1 Exclusive of 4 worsted establishments in New Hampshire and 1 in Vermont. 2 Exclusive of 1 worsted establishment in New Hampshire and 1 in Vermont. 3 Exclusive of 2 worsted establishments in Vermont. 4 Exclusive of 1 worsted establishment and 17 woolen establishments in Vermont. 6 Exclusive of 1 worsted establishment and 16 woolen establishments in Vermont. 6 These figures include felt goods and wool hats. 7 No worsted goods establishments in Vermont. 8 Exclusive of 2 worsted establishments in New Hampshire and 1 in Vermont. 9 Exclusive of 2 worsted establishments in Maine. PRESENT CONDITIONS New England woolen and worsted manufactures have shared the general fortunes of these industries throughout the country, and their experiences in the last few years have run generally parallel to those of cotton manufactures, although resulting from different conditions. 346 INDUSTRIAL STRUCTURE OF NEW ENGLAND The problems of this industry arise not so much from outside com- petition as from internal conditions, which have resulted largely from the individualized nature of a great portion of wool manu- facture. This is true especially of a large number of smaller woolen mills, which have been handicapped by lack of facilities for antici- pating market requirements, or of knowledge of manufactured stocks available to supply the market. In consequence of the curtailed consumption of wool fabrics in recent years, especially in women's wearing apparel, some mills changed to the manufacture of men's fabrics, in which consumption has been more sustained. The result was intensive competition in men's fabrics, resulting from excess production and keen price rivalries. The marketing structure for wool manufactures differs materi- ally from that for cotton goods, because the processes for finish- ing wool goods for final consumption are carried on largely by the mills which produce the cloth. The most important markets for woven woolen and worsted fabrics are the clothing centers of the country ; a large part of the mill sales are direct to garment makers. The wool-manufacturing industry in the past has been quite unorganized and has suffered wide fluctuations in its fortunes, per- haps as a result of its lack of organization. Pronounced market variations and irregular production have been conspicuous, with prices falling frequently below costs of production. Changes in the market situation resulting from the increased importance of the style factor, changes in demand from piece goods to ready-to-wear garments, and the general institution of small-scale buying for current needs have affected this industry in much the same way as they have affected cotton and the other textiles. THE WOOL INSTITUTE An outstanding achievement of the wool-manufacturing indus- tries of the country was the establishment of the Wool Institute in 1927. This is a voluntary association of woolen and worsted manufacturers, representing in its membership about 60 per cent of the active looms of the country. Its purpose has been to bring together individual manufacturers and to undertake, by concerted effort, to work out the solution of common problems of production and marketing. Important in its program have been efforts to assist its members in determining their actual costs of manufacture by adopting a simple and uniform plan of cost accounting. An outstanding feature is consistency in adhering to the prices announced by the individual members as' a means of avoiding the destructive price cutting that has formerly had a demoralizing effect in the industry. Information regarding the stocks of manufactured goods on hand is obtained periodically from the members and is made available to them as a guide for planning future production. This association of wool manufacturers has accomplished a great deal by making it possible for the individual manufacturers to become acquainted with one another and by assisting them to under- stand and meet the marketing problems common to their industry. TEXTILES 347 It has already aided greatly in stabilizing production, by its service in providing information regarding the volume of surplus stocks and market conditions as a guide for individual action. EXPERIENCES OF MANUFACTURERS WOVEN FABRICS One hundred and thirty-six New England manufacturers of woven woolen and worsted fabrics replied to special inquiries from the De- partment of Commerce regarding their manufacturing and marketing practices in the last few years. Each of the States was well repre- sented. Fifty-two replies were received from Massachusetts, 21 from Connecticut, 17 from Rhode Island, 15 from New Hampshire, 14 from Maine, and 7 from Vermont. As the information was fragmen- tary or incomplete in a number of cases, however, the present analy- sis is confined to 120 companies whose replies were fairly complete. These represented a total volume of sales in 1925 of nearly $179,000,- 000, making up approximately 30 per cent of the total value of products reported in the census for that year. Factors influencing location in New England. — The reason most frequently given by these manufacturers for favoring New England was labor conditions, followed in order by marketing facilities, acces- sibility of raw materials, transportation facilities, and banking or financial advantages. Water power was mentioned by a considerable number as the original determining factor in the location of their mills, while a number of others referred to the abundance of water necessary for processing as a determining factor. These two factors, together with a near-by supply of native-grown wool and the supply of local labor, were of principal importance in the early development of the woolen industry in New England. Products of the industry. — The main products reported by these manufacturers were woolen and worsted suitings, overcoatings, dress goods, flannels, and shirtings. Several of the companies made a feature of automobile cloths or robes, and four of them mohair, plushes, and linings. Special products include casket cloth, bunting, billiard cloth, uniform cloth, pile fabrics, reworked wool, yarn, noils, and waste. In a number of cases changes have been made in the kind of prod- ucts manufactured to meet changes in the demand for goods. Two manufacturers reported change from fabrics for men's wear to women's wear, and several had changed from worsted goods to woolen goods, while others had made an opposite change. One mill changed from fancy cotton goods, while another was formerly a felt mill. A manufacturer of cotton-warp suitings and overcoatings for- merly specialized in horse blankets. One former manufacturer of broadcloth, cassimeres, and blankets changed to overcoatings and suitings for women's wear, while another concern making wool cassi- meres changed to flannel and broadcloth. A Vermont manufacturer of cotton-warp wool overcoating formerly made yarn for home knit- ting and later all-wool blankets. A large establishment in Maine, which now specializes in fabrics for light-weight summer clothing and automobile cloth, formerly made yarns, astrakhans, and cloak- ings. A Massachusetts concern formerly doing custom work changed 348 INDUSTRIAL STRUCTURE OF NEW ENGLAND to the manufacture of woolen cloth, while a Connecticut manufacturer reports a change from fancy goods to staples. Materials used. — The principal materials reported by the manufac- turers are raw and scoured wool, woolen yarn, worsted yarn, cotton and cotton yarn, merino yarn, silk and rayon yarn, together with wool waste, cotton waste, noils, reworked wool, mohair, chemicals, dyestuffs, and soap. These materials are bought, for the most part, within New England. Woolen and worsted yarns as well as cotton yarns are obtained from local mills, while raw wool is supplied prin- cipally from the Boston market, although Philadelphia is mentioned in one or two instances. A large portion of this raw wool is imported from Australia, South America, South Africa, and India. A por- tion comes from the Western States. Age of establishments. — That the woolen industry has been long established in New England is indicated by the fact that over one- third of the firms reporting have been in operation for 50 years or more. There were 10 concerns between 75 and 100 years of age, and 11 companies had been in operation for over a century. Forty-five of the establishments had come into existence within the preceding 25 years, and 17 of these within 10 years. Changes in management within the preceding 25 years were re- ported by 55 concerns. Twenty-two of these had undergone change in the period between 1900 and 1920, while 17 others had experienced changes in management since 1921. Some of these changes repre- sented simply incorporation of previous companies, but the majority of cases indicated a change of ownership. A total of 32 branch plants was reported by 19 companies, all these branches being located in New England. The greater part of these branches have been long established. One company re- ported 5 branches, one 4 branches, and one reported 3; while four reported 2 branches each, and 12 other companies had 1 branch each. Size of companies. — Of the 120 firms giving sales figures for 1925, 56 firms, representing nearly one-half of the total number, account for over four-fifths of the $179,000,000 reported; and 11 of the larger firms, whose individual sales ranged from $3,000,000 to $16,000,000, account for over two-fifths of this total. The most representative size of business was that with annual sales ranging between $1,000,000 and $3,000,000, as 46 companies fall within this range. There were 32 concerns reporting sales between $500,000 and $1,000,000, whose total made up about one-eighth of the full amount, and 29 firms between $100,000 and $500,000 accounting for only one-twentieth. Besides these there were three small firms whose total was negligible. The prevailing size of establishment is in the range between $500,000 and $2,000,000, over half of the total number falling within this grouping. For the 120 reporting companies the average sales in 1925 amounted to $1,529,000. Employment figures submitted by 126 companies show that 76 of these, comprising three-fifths of the total number, employed from 100 to 500 persons each. Thirty-seven companies employed fewer than 100 persons each, and 13 establishments employed from 500 to a maximum of 3,600 each. There were seven companies reporting the employment of over 1,000 persons each. TEXTILES 349 The total employment for 1925 reported by these 126 companies was 35,548 persons, of which 47 per cent were in the 13 large mills i employing over 500 persons, and 36 per cent in the 7 largest estab- j lishments employing over 1,000. Plant operation. — Increases in plant capacity since 1921 were re- ported by 40 companies, these increases ranging from slight addi- tions up to a doubling of capacity. One company reported a 400 per cent increase. Eight establishments reported a doubling of capacity, 3 others a 50 per cent increase, 14 others increases from 25 to 50 per cent, and several others smaller amounts. A Massachusetts manufacturer of men's worsteds and automobile cloths, doing a business of over $2,000,000, quadrupled his plant capacity, while another manufacturer of automobile cloths in the same State, doing a business of $750,000, reported a 100 per cent increase. A Massachusetts manufacturer of reworked wool, doing custom work of $100,000, doubled his plant capacity. A Rhode Island manufacturer of worsted suitings doing nearly a $2,000,000 business reported a 200 per cent increase, while another concern in the same State weaving worsteds for making men's wear, whose busi- ness of nearly $500,000 has shown pronounced growth, reported that the capacity of the plant had been increased over 100 per cent since 1923 by consecutive additions. Another large manufacturer of worsted cloth, waste, and noils in Rhode Island, whose sales have shown pronounced increases each year since 1921, reported some additions each year. This executive says, " We believe in New England." A Vermont manufacturer of woolen goods, doing nearly a $1,000,- 000 business, reported the addition of a spinning and carding plant, with operation day and night. A Massachusetts manufacturer of woolen cloth, with knitted goods as a secondary line, with sales of nearly $2,000,000, built a complete new plant in 1921. One of the largest manufacturers in New England reported substantial addi- tions of cards, combs, frames, and looms at intervals since 1922. Relation of 1925 output to maximum capacity. — Of the 122 com- panies indicating plant operation, one-fourth reported running at full capacity in 1925, while one-third of the total operated at 90 per cent or better. There were 35 companies reporting from 75 to 90 per cent of full capacity, and 38 others from 50 to 75 per cent. Nine manufacturers reported operations at less than one-half of maximum capacity. Sales trend, 1921 to 1925. — The total sales reported by 105 com- panies, amounting in 1925 to upward of $160,000,000, show an in- crease over 1921 of 23.5 per cent. Among the individual concerns were 76 companies whose sales showed an increase for this period averaging 63 per cent, their aggregate sales in 1925 amounting to $111,000,000; while there were 29 companies with aggregate sales in 1925 of $48,000,000, which showed a decrease averaging 20.6 per cent from 1921. The period from 1921 to 1923 showed for 106 firms, whose total sales in the latter year were $169,000,000, an increase of 30.5 per cent over 1921. In this shorter period there were 86 firms, whose aggre- gate sales in 1923 were upward of $140,000,000, which made individ- ual increases over 1921 with an average rate of 42.8 per cent ; while 350 INDUSTRIAL STRUCTURE OF NEW ENGLAND there were 20 firms, with aggregate sales of $28,000,000, which decreased individually, with an average falling off of 10.6 per cent from 1921. The period from 1923 to 1925 showed a net falling off in total sales of 2.7 per cent, as represented bv 116 companies, whose sales in 1925 totaled $175,658,000. Most of this decrease took place in 1924, when there was a decrease of about 5 per cent from 1923; while 1925 showed an increase of approximately 2 per cent over 1924. Among individual companies there were 63 with total sales in 1925 of a little less than $81,000,000 which showed individual increases, with an average rate of 36.4 per cent over 1923; while there were 53 firms with aggregate sales in 1925 of nearly $84,000,000, whose individual sales decreased at an average rate of 24.6 per cent ; there was also one firm doing a $10,000,000 business whose sales in 1925 were about the same as in 1923. For the individual years there were 62 companies, with aggregate sales in 1924 of nearly $87,000,000, whose sales increased from the preceding year, with an average rate of 22.3 per cent; while there were 53 com- panies, representing an aggregate of nearly $84,000,000, whose in- dividual sales decreased with an average rate of 21.8 per cent below 1923. In 1925, out of 118 firms with total sales of approxi- mately $179,000,000, there were 67 firms whose aggregate sales were $114,000,000 which increased over 1924 with an average rate of 19.9 per cent; while there were 50 firms, with aggregate sales of $62,- 500,000, which fell off from 1924 an average of 19.5 per cent; and one firm, with sales of $600,000 in 1925, which showed no change from 1924. Location of sales, — The overwhelming proportion of woven wool fabric is marketed outside of New England. This is not surprising, since New England is the national center of wool manufacturing. The chief market for wool fabrics is in the great clothing manu- facturing centers of the country. New York City, in particular, is the headquarters for the specialists in this line. Since the pre- vailing method of marketing is through selling agents, it is im- possible to ascertain from the manufacturers the actual place where their product is consumed. A number of manufacturers reported sales in the Middle West, several mentioned sales on the Pacific coast, and a few sell in the Southern States. The chief centers of consumption outside New York City are Chicago, Rochester, Balti- more, and Philadelphia. Over half the companies stated that less than 10 per cent of their sales are made in New England. Only 10 companies re- ported New England sales in excess of 25 per cent, while 4 stated that they sell one-fourth to one-half of their products in New Eng- land, 2 others from one-half to three-quarters, and 4 sell their entire production there. Of 73 companies indicating sales in New England 18 stated that they are increasing their business in that region, while 31 reported a decrease of New England sales and 24 said there was no change. No direct exports of any consequence are indicated in the replies. One small company making cotton-warp woolen reported 2 per cent exports; a $5,000,000 company making special woolen fabrics TEXTILES 351 reports 1 per cent, and three other medium-sized concerns indicate 1 per cent or less. Trade-marks and advertising. — The use of trade-marks for brand- ing the product is prevalent among the manufacturers replying. Of 94 concerns indicating their practice in this respect, 73 stated that the majority of their product is trade-marked, and 62 of these brand their entire output. Advertising, however, does not appear to be a common practice. Of 100 companies replying to this question, 77 stated that they do no advertising, while 16 reported advertising in national mediums, and 7 reported the use of local advertising. The principal advertising mediums were reported to be trade journals. This low representation of advertising is doubtless explained in large measure by the method of marketing the product, since sales are for the most part left in the hands of separate agencies. Channels of distribution. — Most of the concerns market their prod- ucts through a single agency, and that is the commission selling agent. Out of 111 replies, 81 indicated selling houses in New York, while 18 reported direct sales to wholesalers and 8 reported direct sales to manufacturers of clothing. Three companies reported sales through exclusive wholesalers, while only one reported sales entirely through retailers. Wholesale and merchant tailors, and manufactur- ing tailors are the main outlets. WOOL YARN In addition to the foregoing information from makers of woven wool fabrics, replies were received from 28 manufacturers who specialize in woolen, worsted, or mohair yarns. These concerns, in general, run parallel to the manufacturers of woven goods, except in the method of marketing their products. As the principal mar- ket for yarn is found among the manufacturers of woven goods, the yarn manufacturers produce in large measure for a near-by local market. Size and location of plants. — Of the 28 yarn manufacturers re- porting, 14 are located in Rhode Island, 11 in Massachusetts, and 1 each in Maine, New Hampshire, and Connecticut. The total sales of the 25 companies which gave figures for 1925 aggregated $41,192,000, and the total employment of 27 concerns indicating this item amounted to 6,911 persons. Fifteen of these companies reported individual sales in 1925 of over $1,000,000 each, making up over 90 per cent of the total reported sales, and there were 6 companies with sales over $2,000,000, which account for 55 per cent of the total. There were 9 companies with sales under $1,000,000 each, including 2 between $500,000 and $1,000,000, 6 between $100,000 and $500,000, and 1 under $100,000. The average size of annual sales for the 25 companies was $1,648,000, and the average employment was 256 per- sons per company. Ten companies employing between 250 and 1,000 persons each made up 73 per cent of the total employment, and 4 of these employing over 500 persons each made up 43 per cent ; while 11 companies employing between 100 and 250 persons each made up 23 per cent, and 6 companies employing under 100 persons each accounted for only 3 per cent of the total employment. These manufacturers of wool yarn, as a group, do not appear to have been as long established as the makers of woven fabrics. Only 352 INDUSTRIAL STRUCTURE OF NEW ENGLAND one of these yarn concerns had been in existence longer than 50 years, while 18 had been established within 25 years. Of the latter, 9 had come into existence within 10 years, and there were 2 companies established since 1921. Recent changes in management were indicated in 8 instances, of which 5 took place within the last five years. Two establishments reported a change from the original product, in one case from carpet manufacturing to yarn manufac- turing, and in another from garnetting. Three of the establishments reported branch plants, one company having 3 branches, and two others having 1 each, all located in New England. Increases in capacity of plants since 1921 were reported in 10 in- stances. Two concerns had doubled their capacity, one had increased it 150 per cent, one 78 per cent, two 50 per cent each, and three others lesser amounts, while another reported the construction of a new plant. The ratio of operation in 1925 to the maximum capacity runs generally parallel to that shown by the manufacturers of woven goods. Of 23 concerns indicating this, there were 11 operating at 75 per cent or upward and 9 others between 60 and 75 per cent. One reported operating at 50 per cent and another at 40 per cent. One manufacturer stated that plant operation was maintained above maximum capacity by means of night shifts. Location of markets. — The location of markets was indicated by 26 companies; 15 of these reported the majority of their sales made in Xew England, and 11 of these sold three-quarters or more in that region. Eleven market less than one-half of their products in New England ; of the latter 8 reported from one-fourth to one-half, 2 less than one-fourth, and 1 none. The only States outside of New Eng- land mentioned in any of the replies were the Middle Atlantic States, and most of the replies indicated these in addition to New England. Ten manufacturers reported their sales in New England to be decreasing, while 6 others reported an increase and 4 said there was no change in their sales in New England. Distribution of prodrugs. — Distribution of the products of wool- yarn manufacturers depends to a large extent upon the commission agent, as was the case with the woven fabrics. Of 20 manufacturers who reported the use of only one channel of distribution, 8 reported sales through commission agents only and 8 others direct to manu- facturers only, while 3 reported selling their entire product through wholesalers, and 1 other through an exclusive distributor. In seven instances the manufacturer used more than one of these channels. Trade-marks and advertising . — The use of trade-marks appears less prevalent than in the case of woven fabrics. Eight companies reported that their entire product is trade-marked, while 6 stated that none of it is branded and 14 made no reply to this question. As regards the use of advertising, 12 companies replied in the affirmative, the principal mediums being trade journals, while 2 re- ported newspaper and magazine advertising and 1 direct mail. Sev£n companies stated that they do no advertising, while 9 others did not Trend of sales. — The general trend of sales for 22 companies giv- ing complete figures, with aggregate sales in 1925 of $37,500,000, showed an increase of 39 per cent over 1921. In this total there were 70 firms whose individual sales showed increases, with an average TEXTILES 353 advance of 58 per cent over 1921, and 5 firms, with total 1925 sales of about $5,000,000, which showed individual losses, the average decrease being 21.5 per cent compared with 1921. All but four of these companies had an increase in sales from 1921 to 1923, and the falling off of these four companies was relatively slight. From 1923 to 1925 the aggregate sales of 23 companies, amounting in the latter year to $38,700,000, showed a decrease of 9.5 per cent from the 1923 total. In this interval, however, there were 12 com- panies, with sales of $21,500,000 in 1925, whose sales increased indi- vidually at an average rate of 18.9 per cent over 1923 ; while in the case of 11 other companies, with aggregate sales for 1925 somewhat in excess of $17,000,000, the individual sales fell off, the average rate of decrease being 30.2 per cent. The trend of sales of manufactur- ers of woolen yarn from 1921 to 1925, as indicated by the experience of these reporting companies, thus runs generally parallel to the trend for manufacturers of woven goods, who provide the consum- ing market for wool yarn. Seasonal employment. — Figures of 134 New England mills mak- ing woven fabrics or yarns, showing the average number of em- ployees on their pay rolls during quarterly periods in 1923 and 1925, show a variation between periods of minimum and maximum employment in 1923 of only 3 per cent, and in 1925 of 10 per cent, derived from the following totals : In 1923 : Employees January 45, 991 April 46, 614 July 45, 338 October 44, 179 In 1925 : Employees January 41, 887 April 39, 456 July 37, 841 October 40, 640 The relatively slight variation at different seasons shown by these figures is in considerable measure the result of efforts of many mills to maintain uniform employment throughout the year by manufac- turing stocks during slack periods or by developing supplemen- tary lines. Internal improvements. — Improvement is likewise noted among many of the New England woolen and worsted mills in recent years through the development of better methods of mill operation. Among these the prevention of accidents stands foremost, being mentioned in 91 instances, while in 72 cases it was stated that em- phasis was placed upon the continuous maintenance of plant and equipment. More effective organization and control of production, have also been emphasized. Standardization of products, materials, and equipment has likewise received some attention. Industrial re- search was mentioned in only 10 instances. Relations between management and workers, which were men- tioned frequently as showing improvement, are indicated by the degree to which incentive methods of wage payment are used, where- by the financial reward is made in proportion to the work accom- plished, this having a tendency to keep unit cost low and more closely within the control of the management. Of all the mills report- ing in this group 83 per cent indicated that they use incentive methods of wage payment, an average of 43 per cent of all factory employees working on a piecework or similar basis. 354 INDUSTRIAL STRUCT I KK OF NEW ENGLAND The following comments from individual manufacturers are typi- cal of some of the results obtained by these improvements. One manufacturer states, " Continuous maintenance of our plant and equipment, together with standardization of materials and equip- ment, has resulted in a better product at lower price. Modern up- to-date machinery and better routing of work has cut cost." An- other reports " standardization of all possible basis construction to allow instant change to other numbers of cloth to meet conditions instantly." Rearrangement of machines and scrapping of old machinery are credited with improved production by another manufacturer, while in another instance limiting the number of patterns and controlling production have resulted in increased sales. Another company states, " Standardization of products on a limited line of patterns has given us 100 per cent production throughout the year." This experi- ence is repeated in another case in the statement, " Cooperation be- tween the management and workers and the standardization of prod- ucts have made possible the continuous operation of plant on staple goods." METHODS AND POLICIES The attitude of progressive manufacturers in regard to the in- stallation of new and up-to-date equipment is expressed in the fol- lowing statements from leading millmen in response to a special inquiry. One executive says, "The policy of this company has been to adapt ourselves to new conditions as we saw them after the war, by the installation of new machinery; and we believe this has been the attitude of the industry in general in New England." Another executive says, " The policy of this company, for the last six or seven years anyway, has been to install, just as far as we are able, the most modern equipment — that which would keep our products up to change in demand and would reduce our costs. The result has been a substantial change in these years in the character of the product and machinery." The statement of another executive is, " It has always been our policy to install new, up-to-date equipment to reach higher standards and maintain the ability to compete, and we believe that this policy is followed generally in New England." Another manu- facturer reports as follows : " We have always tried to keep our equip- ment in good condition, buying new when we felt it had been tried and found to be a saving or an improvement in the manufacture of our goods. The general attitude in New England is somewhat con- servative in textile lines, owing to present conditions." Another executive states, " This company has adopted a policy of gradually installing new and up-to-date equipment and will continue to carry out that policy until the entire plant is brought thoroughly up to date. This policy has been adopted in order to enable this company to reduce its costs and meet the competition existing in the textile industry to-day." The comments of several other manufacturers run in a similar vein, although one executive reported that his company had no intention of putting in different equipment unless a special necessity should arise. Reasons for ohcmging sales trends. — Of the factors believed to be responsible for a falling off in the sales of woolen and worsted manu- TEXTILES 355 facturers, those mentioned most frequently were overproduction and changes in the general demand for wool fabrics. The high cost of labor was mentioned in a smaller number of cases, while competition from other sections of the country was mentioned as a cause in 18 replies. Where total sales had increased, the increase, in the greater number of cases, was credited to the development of new products or to the lowering of manufacturing costs. Development of new sales methods and the extension of sales territory were credited for this in- crease in a relatively small number of cases. The influence of changes in the nature of demand and in methods of buying, of style changes and similar factors, and of the manufac- turing and merchandising policies of New England mills is indicated in the following statements of experiences by some of the leading executives of this industry in New England. One manufacturer of woven goods reports : The principal change which has come about is in adopting the policy of hand- to-mouth buying. Our goods go largely to manufacturing clothiers, and while this policy enables most of them and the retailers to carry much smaller inven- tories it works disadvantageous^ to the manufacturer, because frequently the orders do not come in during a season in sufficient quantity to keep the mill running at full capacity. Considerable business is lost to all branches of the industry by this policy, through inability to fill orders from the retailers in suf- ficient time for the season's trade. Now that the excessive demand caused by the war and postwar period is at an end, there is no question but that there is a capacity for production in the industry considerably in excess of demand. This condition, of course, brings about a very strenuous competition. The effect of changes in buying practice is indicated as follows by another manufacturer: The buying has changed to a hand-to-mouth proposition. The buyer expects the other fellow to have it made up so that all he will have to do is to write in for an immediate delivery of whatever he needs. If he can not get delivery he will not give you the order until he has tried to get the same goods from some other manufacturer. The difficulty arising from inability to manufacture for stock in the face of small-order buying is thus stated by another manufac- turer : We find that the consumer demand is about the same in that their buying policies are all from hand to mouth, and, of course, this is to be expected with the rapid transportation facilities which are now available. We find that there are a few others who slash prices at various times because of having made up large quantities of stock goods. The only new market problems, as we see it, are in keeping up to the minute with requirements of the trade, which seem to change quite often. Another executive saj^s : While our customers used to buy in large quantities over a long period of time, to-day they only place orders from day to day. In other words, no longer do we find accumulations of stock in anybody's hands as we did find it. This sentiment is amplified thus by another manufacturer : Consumer demand and buying policies have changed entirely during the last five years. Consumers are spending more money for autos, radios, etc., and are saving on clothing. This has created less buying in the textile line, over production in textile fabrics, a buyers' market with hand-to-mouth buying, and has thrown risks and burdens on the manufacturer's shoulders which he did not have in former times. Another manufacturer reports that the demand for his products has decreased on account of fashion changes and that the buying policy 356 INDUSTRIAL STRUCTURE OF NEW ENGLAND of the consumer is changing more and more to a hand-to-mouth buying. The importance of the changes which have taken place is thus emphasized by another manufacturer of woven-wool fabrics : The adoption by the manufacturing clothier and retail clothier of a hand- to-mouth buying policy, compared with the former policy of commitments made at the beginning of a season for the entire season, places a very large burden on the manufacturer, who is either compelled to guess at the particular fabrics that will be popular during a given season, and make goods up for stock in accordance with this guess, or to create manufacturing facilities far in excess of the need of normal production in order to sell the demand of the buyers when made. In addition to this, the fact that women have turned from wearing worsteds and heavy woolens to lighter fabrics, such as silk and rayon, has deprived woolen and worsted manufacturers of approximately 30 per cent of their market. Rapid style changes as a factor in increasing costs are stressed thus in another instance : There has been a violent change in demand in the last few years; first, from staple fabrics and colors to fancies, and these fancies changing several times in each season ; second, in quantity. The customer buys always in small quantities, increasing very materially the cost of production and distribution. Regarding the importance of this style factor another executive says: The most important change that we have noted is the demand of the con- sumer for the latest up^to-the-minute styles. This makes it necessary for the buyer to purchase from hand to mouth in order to have the latest styles, and also avoid large inventories. In our endeavor to meet this condition, and at the same time continue mass production so as to keep our costs at a minimum, lies probably our greatest problem at the present time. Sales methods of representative wool manufacturers. — The experi- ences of individual manufacturers in marketing their products was obtained from a number of leading executives who replied to special inquiries regarding their sales methods.* Several of these stated that since their goods were all sold through commission houses they were unable to give any information about the marketing end. A number of others, however, including some of those who sell to commission houses, indicated that close touch is kept with the market. One of these executives states : We sell through our selling house, which is practically our sales department. That is, our relations are very close, and we have complete control of our distribution, through the selling house. We sell both to jobbers and to large retailers through about 15 salesmen, and distribute our goods all over the country. The proportion to jobbers is about 40 per cent, while 60 per cent goes to retail stores. In all but one case the territories are arranged geo- graphically and as a rule are based on branch offices in some of the larger cities. Here we take what we call tfre 6-month season, from October to April, and study our entire distribution by yards and by counties. We then set up a budget based on the total number of yards we are able to produce, and assign this yardage, according to the value of each territory, to each salesman. The statement of another executive is as follows: Our goods are sold through a Now York commission house which employs a number of salesmen, covering all the markets of the United States where our goods are handled. Salesmen work mostly on a commission basis, which helps to Increase sales, and continuous study of the markets is carried on by our selling agents. TEXTILES 357 The executive of a mill which handles its own selling states as follows : This company's product is sold by six salesmen, all of whom are paid a flat salary. The market is studied by being in constant contact with it. No par- ticular method is used in assigning territories. Good work on the part of our salesmen is recognized by rather frequent increase in their compensation. The executive of another mill describes his sales organization thus: This company uses the sales-department plan of selling, a sales manager being located in New York, who has charge of the entire selling organization at the present time. We have approximately 10 salesmen covering New York and the principal cities of the country. Compensation of these salesmen is on a commission basis. In the case of the salesmen located in the New York mar- kets a drawing account of a reasonable amount is allowed. The experience of another mill which deals directly with the trade is given thus by its executive : We sell our own goods directly to jobbers and manufacturers of garments, the larger part of our product being sold through the mail by sending out com- plete lines of samples; to the entire trade at the beginning of the season. We employ only three salesmen and these travel very little. They are all on a salary basis. The customary method of buying in our trade is to get samples from all sources of supply and compare them and then send in the order, usu- ally by mail. The initial orders are now invariably small, oftentimes only one piece. The manufacturer or jobber then shows the customers what he has, and if he makes sales, he then orders the goods. An individual customer may order many times in one season on the same goods, where formerly he would purchase only his individual order and perhaps one repeat order. The manu- facturer of garments is much closer in delivering to his customer nowadays than he formerly was, this being due to the final buyer's unwillingness to purchase before he actually needs the goods. The expense of doing business has increased materially because of this fact. A manufacturer of yarn who deals directly with the trade states as follows : We sell our yarn direct to the weaver. We do not employ any salesmen. Our customers, we feel, derive the advantage by our own selling of our products, as we do not have the expense of salesmen. This, we feel, has helped us to sell more goods, giving our customers the lowest price possible. REWORKED WOOL Reworked wool, which is commonly known as shoddy, came into extensive use during the Civil War. At the present time the United States produces a total of about 100,000,000 pounds a year, which is equal to one-fourth of the annual wool clip of the United States. CONDITIONS REPORTED Number, size, and activity of plants. — Of 68 establishments in the whole United States engaged in the recovery of wool fiber from rags, waste, tailors' clippings, and other sources, with a total product val- ued in 1925 at $21,000,000, 36 establishments in Massachusetts, Con- necticut, and Rhode Island produced about one-fourth. These plants engaged the activities of 774 persons, of whom 662 were wage earners, who received $842,000 in wages and produced goods valued at $5,216,000. Materials used by the industry of these States cost $3,474,000, and the industry's contribution to their income, as shown 61232°— 30 24 358 INDUSTRIAL STRUCTURE OF NEW ENGLAND by value added, was $1,743,000. The value of product for Massa- chusetts, with 26 establishments, was $3,382,000; for Connecticut, with 4 establishments, $1,603,000; and for the 6 establishments of Khode Island, $203,000. In addition to the 36 New England estab- lishments enumerated by the census, there were 2 establishments in Maine and 2 in Vermont, with no figures on production. One estab- lishment in the latter State had a larger volume of sales in 1925 than any one for which census figures were given. Outside the 40 establishments in New England there were 32 plants in other States. The principal other producing States are New York, with 10 establishments and a product valued at upward of $4,000,000; Pennsylvania, with 9 establishments and a product of over $3,000,000; and Ohio, with 3 establishments and a product of somewhat less than $3,000,000. On account of the shortage of available wool during the World War there was a great increase in the number of mills engaged in reworking wool, there being 78 such establishments in the United States in 1919. The number of these mills in New England increased during the war period — from 28 in 1914 to 45 in 1919. The number fell off to 31 in 1921 and increased after 1923 to 40 in 1925. The New England product in 1919 represented nearly one-half the total for the United States. On account of incomplete figures it is difficult to determine the present importance in New England of this branch of the wool indus- try, but it is estimated that in 1925 New England produced between 30 and 40 per cent of the United States total. The national output had a value in 1919 of $23,254,000; in 1923 it was $16,698,000, and in 1925 it was $21,022,000. The following table shows the importance of this industry in the individual States in 1927 and 1925. Wool Shoddy Manufacture in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manufac- ture Connecticut: 1927 .. 3 4 24 26 3 6 153 147 492 480 22 35 175 172 607 628 33 42 880 1,275 1,581 2,076 124 123 1,200 1,604 2,901 3,382 197 230 320 1925 329 Massachusetts: 1927 _ 1,320 1925 1,307 Rhode Island: 1927 _. 73 1925 107 Total: 1927 _ 30 36 667 662 815 842 2,585 3,474 4,298 5,216 1,713 1926 1,743 Source: U. S. Bureau of the Census. Replies to special inquiries were received from 10 manufacturers in this line, with sales figures from 8 of them, located in Massachu- setts, Connecticut, and Vermont, representing a total of 506 em- ployees and aggregate sales in 1925 of $3,789,000. One of these TEXTILES 359 companies had upward of 250 employees and sales exceeding $2,000,000. The other seven companies ranged in size from 12 to 50 employees, and had sales of less than $100,000 to $400,000 each. All the plants had been established within the last 60 years and none of them within 25 years, the average age being about 40 years. Two of the establishments had changed management within 4 years and one within 12 years. Two of them reported branch plants in New England. Raw materials. — The principal raw materials reported are woolen rags, wool waste, and clippings, and certain oils and chemicals used in processing the wool fiber. Most of these materials are obtained from sources within New England, but clippings and waste are pur- chased outside also. The output in 1925 of individual plants ranged from 50 to 90 per cent of full capacity, with an average amounting to 69 per cent. Employees in this line are generally paid on an hour or day basis, and the use of incentive methods of payment is very slight, very few factory workers being paid by piecework. Sales and marketing. — The principal market for reworked wool reported by these manufacturers is found within New England, all but one of them stating that they sell all their products, or nearly all, in those States. One manufacturer sold one-half of his product within New England and the other half direct to factories all over the country. Most of the reporting companies use a trade-mark on all or most of their products, but comparatively little advertising is done by them. The product was marketed in every reported case directly to the consuming manufacturer, without the use of selling agency or other intermediaries. Trend of sales. — Sales of the reporting companies for 1921 to 1925 showed a very pronounced increase, in several cases being from three to five times the amount of 1921. From 1923 to 1925 there was a slight net increase in the total for these 8 companies, 2 of them fall- ing back considerably and the others advancing or holding their own. Most of the falling off took place in 1924. From 1924 to 1925, how- ever, 6 of the companies showed a falling off and only 2 of them show r ed an increase. The reasons ascribed by individual manufacturers for declining sales were generally the decreased consumption of woolen goods or foreign competition. One concern stated that it was due to the in- creased amount of silk in all fabrics, and another stated that the com- petition from the Western States affects New England customers. One manufacturer stated that despite a greatly decreased demand for his products he had effected considerable reduction in unit costs both in labor and in overhead; another spoke of better results from strict cost accounting and a skilled purchasing department, while a third has increased his sales by putting out a better product. WOOL SCOURING The processes of sorting, scouring, and carbonizing wool are car- ried on, as a rule, in connection with mills which manufacture raw wool into yarn or cloth, and hence this industry, for the most part, is included with other operations of wool manufacturing. There are certain establishments, however, which operate separately, confining 360 INDUSTRIAL STRUCTURE OF NEW ENGLAND themselves wholly to the preparation of raw wool for manufacture. Many of these do this work on commission under regular or special contract, and hence it is difficult to place a value upon their output. There were 25 of these separate establishments in the United States in 1925, as reported by the census, giving employment to 1,112 wage earners. Fourteen of these establishments were located in New England, and of this number 12 were in Massachusetts. These employed 544 wage earners and paid wages of $822,000, mak- ing a product valued at $2,398,000 and adding $1,518,000 to the State income from manufacturing. The same number of establish- ments was reported for 1927, with a slight increase in wage earners and wages, and a slight reduction in value of output, and in the State revenue from this source. Massachusetts in 1925 contributed 41 per cent of the total reported for separate establishments in the United States. There was one establishment in Connecticut and one in Khode Island for which no figures were given. Of 11 establishments which replied to a special inquiry, 7 em- ployed fewer than 50 persons each, 1 between 50 and 100, and 3 between 100 and 500 persons. The output of all of these concerns was disposed of to other manufacturers in New England, distribu- tion being made through commission agents and wool brokers. The principal materials used in processing were reported as sulphuric acid, alkali, and soap, and these were purchased for the most part in New England. WOOL CARPETS AND RUGS The making of wool carpets and rugs in New England is confined to Massachusetts and Connecticut. These two States produced in 1925 between one-fourth and one-fifth of the national total. One of the largest manufacturers of wool carpets and rugs in the entire country has its headquarters and main plant in Connecticut, with a branch in Massachusetts, and there is another very large establish- ment in Massachusetts. These two concerns account for a high percentage of the total New England production. It is estimated that between 7,500 and 8,000 persons, including office and wage earners, are engaged in the manufacture of wool carpets and rugs in the two States. Importance of the industry. — Massachusetts is the only State for which separate figures are available. The product of Massachu- setts in 1925 represented one-eighth of the total value for the United States, and the income from this activity was about one-seventh of the national total. The manufacture of carpets and rugs in Massa- chusetts is thus of substantial national importance. The product of the nine establishments in this State had a value in 1925 of $23,- 883,000 and contributed nearly $12,000,000 to the State's income from manufacturing. There were about 4,800 persons engaged in this industry, which paid nearly $5,000,000 in wages provided a market for- materials of various sorts amounting to $12,427,000. In 1927 there were 10 carpet and rug establishments in Massa- chusetts whose reported output had a value of $22,080,000, con- tributing more than $12,000,000 to the State's revenue and paying $5,613,000 in wages. TEXTILES 361 There were 632 looms used in carpet manufacture and 697 rug looms in Massachusetts in 1925, while in the State of Connecticut 859 carpet looms were reported by the census. Most of this machin- ery was employed in making Wilton and Axminster carpets and rugs. Massachusetts has more than maintained its position in the na- tional output since the war. The value of the product of this State shows an increase of 80 per cent from 1919 to 1923, in comparison with a national increase outside of Massachusetts of only 60 per cent. There was a slight falling off from 1923 to 1925, amounting in Massachusetts to 2.2 per cent, in contrast with a reduction of 5.7 per cent for the rest of the country. From 1925 to 1927 the value of products for the United States as a whole showed a falling off from $188,903,000 to $164,709,000, a reduction of 12.8 per cent; while the value added by manufacture fell off from $84,707,000 in 1925 to $80,674,000 in 1927, representing a national reduction in income from this source of 5.5 per cent. The position of carpet and rug manufacture in Massachusetts is shown ior the census years from 1904 to 1925 in the following table : Carpet and Rug Manufacture! in Massachusetts, 1904-1927 Establishments Persons engaged Salaries in thou- sands of dollars Year Massa- chusetts United States outside Massa- chusetts Massa- chusetts United States outside Massa- chusetts Massa- chusetts United States outside Massa- chusetts 1927 10 9 11 11 10 12 11 10 55 60 68 61 65 85 128 129 1925 4,798 5,264 3,281 3, 365 5,641 6,251 5,267 31, 022 31, 661 20, 781 20, 886 27, 460 28, 455 29, 126 5,668 7,337 4,295 3,886 2,891 3,229 2,329 43, 522 47, 136 1923 1921 27, 564 1919 25, 080 14, 698 14 516 1914 1909 1904 12, 792 Cost of materials in thousands of dollars Value of products Value added by manu- facture Year Massa- chusetts United States outside Massa- chusetts Thousands of dollars Massa- chusetts as per cent of United States Thousands of dollars Massa- Massa- chusetts United States outside Massa- chusetts Massa- chusetts United States outside Massa- chusetts chusetts as per cent of United States 1927 10, 638 12, 027 11, 366 5,878 8,021 6,668 7,501 6,703 74, 964 92, 169 86, 107 44, 240 59, 097 35, 612 32, 062 31,245 22, 680 23, 883 24, 420 11, 288 13, 594 10, 981 12,812 9,714 144, 208 165, 020 175, 061 92, 593 109, 660 58, 147 58, 376 51, 872 15.7 12.6 12.2 10.9 11.0 15.9 18.0 15.8 12, 042 11, 856 13, 055 5,410 5,573 4,313 5,311 3,011 69, 244 72, 851 88, 953 48, 352 50,563 22, 535 26, 314 20, 627 17 4 1925 1923 14.0 12 8 1921 10 1 1919 9 9 1914 16 1 1909 16 8 1904 12 7 362 INDUSTRIAL STRUCTURE OF NEW ENGLAND From replies of a number of these companies to a special inquiry, it is indicated that the majority of their sales are made outside New England, all but one stating that they sell their products nationally. With the exception of one company, the products of all reporting concerns are fully trade-marked. The marketing channels indicated are principally through direct sales to retailers, with a minor portion of the product sold to the wholesale trade. Extensive advertising, in which magazines are the chief medium, was reported by each of the larger companies. The problems confronting manufacturers in this line are summed up in the following statement from the executive of a large New England concern making woolen rugs : There have been many changes during these last few years in consumer de- mand and in buying policy. Of course, the most outstanding factor has been the hand-to-mouth buying which industries everywhere report. Instead of manufacturing on orders received at one time several months ahead, we are manufacturing almost entirely for stock to meet expected orders. We do not believe that even yet the department stores of the country have reached the limit in close buying. Improvement in transportation and handling of their own stocks and the increase in manufacturers' stocks have made it possible for them to continue their policy of short buying. There has also been considerable change in consumer demand from the stand- point of style. Whereas for many years rug patterns and colorings changed very slowly and were all based on the oriental rugs, there is now a much quicker change and the demand for more decorative fabrics. * * * Finally, there has been a great change peculiar to our own industry, in that the greater proportion of rugs (up to a few years ago) were seamed — that is, made of strips of carpet — while demand now is almost entirely for a rug without seams, except in the Wilton and even here a change has now taken place through the development of wide looms. WOOL AND HAIR FELT GOODS Although the felt-manufacturing industry is relatively small in comparison with the major industries of New England and in com- parison with the woven-wool industry, this section holds an impor- tant position in the country's total felt manufacture. Massachusetts and Connecticut together contributed about 27 per cent of the national production of wool or hair felt in 1925. The products of this industry are felt cloth and trimming and lining felt, the chief uses of which are for making slippers, for lining boots and shoes, for upholstery, automobile parts, saddle pads, polishing wheels, and piano felts. CONDITIONS REPORTED Distribution of industry. — Each of the New 7 England States except Vermont is represented in this industry. Massachusetts overshadows the others with 14 establishments and a product valued in 1925 at $8,087,000, while Connecticut, with 4 establishments, had a product valued at $3,251,000. Maine, New Hampshire, and Rhode Island car}) had two establishments, for which no figures are available. The 18 establishments in Massachusetts and Connecticut engaged 1,369 persons, of whom 1.229 were wage earners, receiving in wages $1,506,000 and making products valued at $11,938,000. Materials used in the production of these two States cost $7,470,000, and the industry contributed to their income $4,469,000, as indicated by the TEXTILES 363 value added by manufacture. Besides these there were two establish- ments in Massachusetts reporting the manufacture of wool-felt hats, not included in these figures. In 1927 there were 17 establishments reported in these two States — 13 in Massachusetts and 4 in Connec- ticut — with 1,249 wage earners, who received $1,559,000 in wages. Products of these plants. w 7 ere valued at $10,653,000 and contributed $3,974,000 to the manufacturing revenue. Size and age of establishments. — Special replies received from 5 companies — 3 in Massachusetts and 2 in Connecticut — represented a total employment of 444 persons, and sales in 1925 aggregated $3,284,000. One of these companies had sales under $100,000. 2 of them between $250,000 and $500,000, 1 in excess of $750,000, and 1 of them over $1,000,000. One company employed fewer than 25 per- sons, 2 others between 50 and 100 persons, and the 2 largest between 100 and 200 persons each. The reported sales were 27.5 per cent of the total value of products for Massachusetts and Connecticut re- ported by the census, and the employees were 36 per cent of the number reported for these two States in 1925. One of the companies had been established over 50 years, one 75 years, and the largest one over 100 years. No changes in management were indicated within the last 15 years. The largest company reporting has three branch plants — 2 in a neighboring State outside New England, established in 1910, and 1 in the Middle West, established in 1923. Raw materials. — The principal materials mentioned were wool and wool waste, noils, shoddy, cotton, and hair. These were obtained, for the most part, within New England from local sources. The accessibility of raw materials, together with labor conditions and a near-by market for products, were stated as the principal influences determining location in New England. Sales trend and marketing practice. — The market for the products of these felt manufacturers appears widely distributed — New York City and the Middle Atlantic States, Chicago and the Middle West, and the South being indicated by the individual companies. Sales in New England ranged among these from 10 to 70 per cent. The largest company, reporting sales of $1,500,000, sells only 10 per cent of its products in New England, while another, with sales of $750,000, reported 12% per cent of its sales in New England, but the per- centage is increasing as a result of more intensive sales efforts. A Connecticut manufacturer of hair and wool felt reports 70 per cent of his sales in New England, and states that a change in products has brought about an increase in these local sales. Another, which sells 60 per cent in New England, reported a decrease due to changes in styles. The aggregate sales of these five companies in 1925 showed an increase of 60 per cent over those of 1921. One company doubled its sales, and each one increased during this 5-year interval. There was a pronounced increase from 1921 to 1923, followed by sharp recession in 1924 and a slight increase in the following year. The three largest companies reported 1925 operations at three-fourths of full capacity, one of the others at only one-third of capacity, while the smallest was operating at one-half capacity. 364 INDUSTRIAL STRUCTURE OF NEW ENGLAND The prevailing method of marketing is direct to the manufactur- ing consumer, but three concerns market a portion of their product through wholesalers or jobbers. Two of the companies indicated the use of advertising. Two companies, including the largest, stated that all of their products were trade-marked. A concern whose sales had a marked falling off in 1925 used no trade-marks on its products, while the two other concerns did not reply to this question. SILK MANUFACTURES The importance of silk manufacture to New England is indicated by an addition to the manufacturing income of that region in 1925 of nearly $55,000,000 and a distribution in salaries and wages of more than $30,000,000 to some 24,000 persons who were engaged in its activities. There were more than 100 establishments in five of the New England States, and all but 4 of these were in Connecticut, Massachusetts, and Rhode Island. Their output had a value of nearly $132,000,000. The industry in New England contributed in 1925 approximately 17 per cent of the total national income from silk manufactures and 16.3 per cent of the national value of silk products. This region is surpassed by the State of Pennsylvania, with 40 per cent of the national value, and by New Jersey with 24 per cent, while New York State contributed 14 per cent of the national total. Connecticut, with a revenue of nearly $25,000,000 from silk manu- facturing, is the leading State in New England in that industry. In Massachusetts the industry contributed over $15,000,000 to the State income, and in Rhode Island more than, $13,000,000. Its relative importance is greatest in Rhode Island, representing not far from 5 per cent of the total revenue from manufacturing in that State, in contrast with less than 4 per cent in Connecticut and less than 1 per cent in Massachusetts. The importance of silk manufactures in the individual States is shown in the following table : New England Silk Manufactures, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manufac- ture Connecticut: 1927 35 40 33 27 31 32 4 9,183 9,977 7, 357 6, 497 6,500 6, 087 775 11,401 11, 948 7,616 6,840 7, 853 7, 521 834 25, 417 30, 900 23, 219 21, 513 20, 698 21, 671 2,774 47, 498 55, 601 38, 220 36, 608 32, 511 34, 855 4,735 22, 082 1925 24, 700 Massachusetts: 1927 15,001 1925 15, 095 Khode Island: 1927. 11,813 1025 13, 185 Maine and New Hampshire: 192";. 1,960 Total: J927 99 103 23, 040 23, 336 26, 870 27, 143 69, 334 76, 852 118, 230 131, 799 48, 896 1925 54, 941 TEXTILES 365 MATERIALS USED The various materials used in silk manufacturing, including fuel, power, and other supplies, provided a market in New England amounting to nearly $77,000,000. Analysis of the data for materials used, machinery employed, and quantity and value of product in 1925, 1919, and 1914 shows that this region has advanced both actually and in comparison with the rest of the country, as is indicated in the following table. Principal Materials Used in New England Silk Industries Material and State 1925 1919 1914 Raw silk: Connecticut, Rhode Island, and Massachusetts .. Pounds 4, 949, 712 35, 187, 590 2, 526, 573 19, 341, 619 1, 968, 657 4, 597, 454 1, 318, 632 15, 728, 292 4, 905, 870 15, 390, 174 Pounds 3, 696, 666 25, 890, 728 i 282, 572 6, 125, 490 3 2, 217, 512 4, 767, 679 1 267, 062 3, 039, 257 6, 818, 127 17, 958, 012 Pounds 3, 533, 232 22, 374, 700 2 41 121 United States Organzine, tram, and hard cr6pe twist: _ Connecticut, Rhode Island, and Massachusetts.- United States 3, 855, 899 3 1, 375, 087 3, 209, 309 2 404, 087 1, 902, 974 8, 076, 485 18, 333, 810 Spun silk: Connecticut, Rhode Island, and Massachusetts United States . Rayon: Connecticut, Rhode Island, and Massachusetts United States -._ Cotton yarns: Connecticut, Rhode Island, and Massachusetts United States- 1 Not including Rhode Island. 2 Not including Massachusetts and Rhode Island. 3 Not including Massachusetts. In the outlay for raw materials, comparison of 1925, 1919, and 1914 shows substantial increases in raw silk, spun silk, organzine, and rayon, and corresponding reductions in the outlay for cotton yarns. The changes in these materials in New England run gen- erally parallel to those for the country as a wliole. The increase in the output of the New England silk industry has been mainly in broad silks. These comprised, in 1925, approximately 60 per cent of the total value of silk manufactures in New England, in contrast with 45 per cent in 1923 and 47 per cent in 1921. The yardage of broad silks shows an increase of 74 per cent from 1921 to 1925 in New England, and of 34 per cent from 1923 to 1925 ; while the value of this yardage shows an increase of 53 per cent from 1921 to 1925, and of 20 per cent from 1923 to 1925. TREND OF GROWTH Relatively slight variation in New England's national position is shown from 1890 onward, except for pronounced advances in the period from 1909 to 1914, and from 1914 to 1919. Its maximum was attained in 1923, not only in the number of persons engaged but also in the value of output and in the total income of the region from this source. In that year New England silk manufactures comprised more than 20 per cent of the national total in value added by manu- facture ; in terms of national value of product, however, the region contributed the greatest proportion in 1914, with 19.3 per cent of the United States total. 366 INDUSTBIAL STRUCTURE OF NEW ENGLAND Active Looms Used on Broad Silks in New England Year Con up. cti cut, Rhode Is- land, and Massachu- setts United States, total 1925. __ _. 17, 511 17, 039 13, 432 11, 525 103, 433 94 172 1923 1919.. 87, 215 73,504 1914 Production of Broad Silks in New England State 1923 Connecticut, Rhode Island, and Massachusetts Pounds Square yards Value United States, value New England per cent of United States 10, 555, 781 76, 802, 381 $75, 051, 255 $529, 121, 011 14.2 7, 857, 455 57,158,841 $62, 594, 330 $456, 082, 819 13.7 6, 306, 710 44, 232, 600 $49, 099, 827 $341, 056, 757 14.4 In the number of establishments the maximum year was 1925. The number in that year showed an increase of 6 plants over 1923 and of 11 over 1921. The greatest increase in number of establish- ments took place in the interval from 1914 to 1919, during which time there was a net addition of 17 establishments. The fact that in 1925 the number of establishments in New England was only 6.6 of the total for the United States, while this section produced 15.7 per cent of the national value of silk manufactures, shows that the average size of New England plants is much greater than in the rest of the country. This is accounted for by the existence of several large companies in New England and by a relatively large number of small companies in other sections of the country. Silk Manufactures in New England, 1890-1927 Establishments Persons engaged Salaries and wages Year New Eng- land United States outside New England New Eng- land United States outside New England New Eng- land as per cent of United States Thousands of dollars New Eng- New Eng- land United States outside New England land as per cent of United States 1927- 99 99 93 88 92 75 79 69 64 58 1,549 1, 560 1,505 1,477 1,277 - 827 773 656 419 414 24,579 23, 0H0 25, 497 22, 780 22, 666 18,867 15,443 12, 880 10,003 8,491 112,399 128,374 111,788 108,917 114,119 96, 704 89, 795 71, 273 57, 947 42, 422 17.9 15.7 18.6 17.3 16.6 16.3 14.7 16.3 15.5 16.7 31,235 30, 199 32, 748 25, 436 25, 785 11,287 7, 655 5, 429 4,313 3,365 130,739 137, 394 121, 980 108, 658 108, 812 46, 328 38, 442 26, 081 19,804 16, 315 19.2 1925 18.0 1923 - 21.2 1921. 19.0 1919... 19.2 1914. 19.6 1909 16.6 1904... 17.2 L900 17.9 1890 17.1 TEXTILES 367 Silk Manufactures in New England, 1890-1927 — Continued Cost of materials Value of products Value added by manufacture Year Thousands of dollars New Eng- land as per cent of United States Thousands of dollars New Eng- land as per cent of United States Thousands of dollars New Eng- New Eng- land United States outside New England New Eng- land United States outside New England New Eng- land United States' outside New England land as per cent of United States 1927 1925 1 1923 2 19212 1919 3 1914 < 19095 1904* 19001 18906 69, 333 74, 084 82,204 60, 337 73, 584 29, 694 20, 452 14, 951 11,841 9,604 376, 058 410, 039 396, 834 277, 222 314, 885 114, 748 87, 315 60, 910 50, 566 41,400 15.6 15.3 17.2 17.9 18.9 20.6 19.0 19.7 19.0 18.8 118, 230 127, 064 139, 718 104, 569 129, 467 48, 933 34, 589 25, 192 19, 648 15, 576 631, 894 681, 915 621, 604 478, 850 559, 003 205, 078 162, 323 108, 096 87, 608 71, 722 15 8 15.7 18.4 17.9 18.8 19.3 17.6 18.9 18.3 17.8 48,896 52, 980 57, 514 44, 232 55, 882 19, 239 14, 137 10, 241 7,807 5,972 255, 837 271, 877 224, 770 201, 628 244, 119 90, 330 75, 008 47, 186 37,042 30, 322 16.0 16.3 20.4 18.0 18.6 17.6 15.9 17.8 17.4 16.5 i Excluding 2 establishments in Maine and 2 in New Hampshire. 2 Excluding 2 establishments in Maine and 3 in New Hampshire. 3 Excluding 3 establishments in Maine and 2 in New Hampshire. * Excluding 1 establishment in Maine and 2 in New Hampshire. 5 Excluding 1 establishment in Maine and 1 In New Hampshire. 6 Excluding 1 establishment in Maine. EXPERIENCES OF MANUFACTURERS The following analysis of special replies from silk manufacturers, shows the general condition of the silk industry in New England in the last few years, The views and opinions expressed herein are presented to show the attitude of representative men in this industry, rather than as official statements or conclusions. As the replies represent more than half of the silk industry in New England, this analysis gives a fair picture of conditions prevailing in the period covered. Answers to inquiries regarding manufacturing and selling prac- tices were received from 36 companies, in which Connecticut was represented w T ith 17 replies, Rhode Island with 9, Massachusetts with 9, and New Hampshire with 1. Four of these companies were engaged only in commission weaving, so they were unable to supply sales figures, while another plant was a branch of a company with headquarters in New Jersey. Complete data regarding volume of business were given by 31 establishments, whose combined sales in 1925 totaled $67,478,000 and represented 51 per cent of the total production of the industry in New England as reported by the census. PRODUCTS AND MATERIALS The products made by the reporting establishments are for the most part woven goods, which include mainly broad silk (dress goods, crepes, linings, velvet, and plushes) and narrow silk (ribbons, trim- mings, neckwear, and hatbands). Other reported products include yarns and twists, spun silk, sewing silk, silk thread, braid and cord, and fish lines. Twenty-one of the establishments were engaged in 368 INDUSTRIAL STRUCTURE OF NEW ENGLAND the manufacture of woven products, while 10 of them concentrated on other silk goods and 5 made a combination of both. Two establish- ments specialized in velvet and plushes, 2 others in hat bands, 2 in silk fishing lines and cord, 3 in silk thread, and 1 in silk yarn. Sev- eral of the larger companies included a variety of products — broad silk, twists and yarns, ribbons, cravats, hosiery, and other woven-silk products. RAW MATERIALS The principal materials used are raw and spun silk and silk waste, raw cotton, and cotton and worsted yarn. Individual manufacturers report also rayon, jute, linen, spools, and dyeing materials. The use of rayon was reported by 12 of the establishments. Raw silk comes from foreign sources, principally Japan and China, and is purchased principally in New York City, although some of the larger manu- facturers import it direct. Spun silk is obtained from within New England or New York and New Jersey, and some of it comes from Italy and France. Worsted yarns are obtained from New England sources and New Jersey. Cotton yarns are purchased both from New England and from southern sources. Rayon is purchased out- side of New England, generally from the Middle Atlantic States. AGE AND SIZE OF ESTABLISHMENTS That this is one of the long-established industries of New England is indicated by the fact that over half of the companies reporting have been in continuous operation over 25 years and a quarter of them over 50 years. Of the companies doing over $1,000,000 worth of business in 1925, all but two had been in operation more than 25 years and several of the larger ones over half a century. One of the latter was established 88 years ago and has been under the same family management for three generations. Another large com- pany was established in New England over 80 years ago. Sixteen companies had been established within the last 15 years; several of these came into existence between 1914 and 1921 and 5 of them since 1921. It is thus apparent that the industry has expanded consid- erably within recent years. Changes of management have been infrequent. In seven instances such changes were indicated within a 15-year period, and three of the changes were since 1921. Few changes in management are noted among the older establishments. No instances were given of a change in the original use of plants, the special machinery and equip- ment required for silk production apparently accounting for this fact. A high degree of concentration in large companies is indicated by the replies. Of the total sales reported for 1925 by the 31 com- panies, nearly ( M) per- cent was represented by 12 companies, each of which did a business of over $1,000,000. The 3 largest companies accounted for over one-half of the total, and 9 others, whose sales ranged from SI. 000.000 to $5,000,000, neeounted for one-third more; while 6 companies with a volume between $500,000 and $1,000,000 made up one-sixth of the total, and the remaining L3 firms, with sales of less than $600,000, made up only 4 per cent of the total. TEXTILES 369 A total average annua] employment of Ll,500 persons was reported by the 36 companies, and over three-fourths of this number were employed by the 7 largest companies. There were 8 companies, each of which employed over 1,000 persons, and these accounted for 64 per cent of the total number; I companies, employing between 600 an<| 1,000 persons cadi, accounted for 23 per cenl ; and 7 companies, em- ploying between L00 and 500 persons, accounted for 11 per cent. The remaining 22 companies, employing less than LOO persons each, had only 9 per cent of the total wage earners reported. BRANCH PLANTS Nine 1 of the Larger companies reported a total of 20 branch plants. One of these has 8 branches, 5 of which are in New England, 1 in New York State, 1 in the Middle West, and 1 in California. An- other company reports 4 branches, all in New England; another has -I in New England; while 6 others report 1 branch each. Altogether there are i:> branches reported in New England and 7 branches out- side of New England. The Latter are principally in New Jersey, New York, and Pennsylvania. Two of the reporting companies have their main offices and plants in New Jersey. One of the Largest con- cerns in the entire group has no branches hut carries on its entire manufacturing operations in one centralized plan!. PLANT LOCATION AND capacity Labor conditions and nearness to market are given by the Largest number of manufacturers as the chief reasons for (heir location in New England. This nearness to market refers, in general, not to the New England market but to i\\(^ New York market, where many of the large wholesalers of silk goods are located within easy access and with good transportation facilities. Additions to capacity of plants since L921 were indicated by one third of the companies reporting, while one-third indicated no in- creases and the remaining one-third did not, reply to this question. One small manufacturer in Rhode Island indicated a, loo per cent increase; another Massachusetts concern doing commission weaving reports HO percent increase; while a Rhode Island manufacturer of broad silks doing $500,000 business reports an increase of 75 per- cent. One of the three largest manufacturers reports an addition of 05 per cent, while a $2,000,000 concern in Connecticut reports a, 40 per cent addition. Increases in capacity from 10 to 30 per ca^, are reported by six other establishments. In general, the increases reported appear to have been justified by the resulting increases in sales, indicating that the additions have been fully utilized. Two-thirds of the reports indicate that operations in 1025 were 75 percent or* more of the maximum capacity of their* plants. Six of these, including 5 manufacturers of broad silk and I of silk yarn, report operating at maximum capacity, and several others were close to it; while 4 other establishments report running at less than one- half of capacity. Naturally, the companies operating at full or nearly full capacity show a mor-e substantial sales increase, hut, with one or- two exceptions the sales figures of concerns running at low 370 INDUSTRIAL STRUCTURE OF NEW KNGLANI) capacity do not indicate a pronounced difference from the general trend, or any pronounced falling off in sales since 1923, when com- pared with the other companies. EMPLOYMENT CONDITIONS The seasonal trend of employment, as shown by the experience of the reporting companies, indicates a more uniform employment of labor throughout the year than is shown in many of the other indus- tries of New England. Definite efforts along several lines have con- tributed materially to this condition, particularly the introduction of supplementary products and manufacturing for stock during slow periods. One concern making fish lines states that manufacturing for southern trade helps sales in the summer, while another states that during dull periods a stock of staples is accumulated whereby fairly uniform employment is insured. Another concern has had a measure of success in its efforts to develop materials used by differ- ent trades in order to overcome the seasonal characteristics of the business, while a manufacturer of twists and sewing silks has added the converting of rayon and mixed yarn. Practically every manufacturer reports the introduction of plans for the control of labor costs in the form of incentive methods of wage payment. For the entire group such plans applied to better than one-half of the workers. Several instances are found in which from 75 to 90 per cent of factory employees are on a basis of payment for piecework or other incentive. IMPROVEMENTS EFFECTED Of the outstanding improvements in manufacturing conditions or methods indicated by various manufacturers, the ones most fre- quently mentioned are improved methods of inspection; prevention of accidents; control of production; control of organization and executive functions; and attention to the maintenance of plant and equipment. Regarding the results of these internal improvements, one manu- facturer states that relations between management and workers have shown outstanding improvement, and another credits better methods of wage payment with a substantial increase in production. Another states that "balancing production capacity with demand has been a great aid in keeping ahead." In another case better organization and executive control is held responsible for balanced production. Another manufacturer has increased production through changes in looms. Executive control and inspection, together with the chang- ing from out-of-date machinery to modern types, are reported by another manufacturer as the outstanding improvements. The following statements from executives, in reply to a special in- quiry regarding their policy toward the installation of new and up-to-date equipment, indicate the attitude of progressive mills in this respect. One manufacturer' states as follows : The policy of our company in regard to the installation of up-to-date equip- ment is to install such equipment as has proved itself not only ( practical but economical. In general, we believe that not only New England but the United States as a whole is more ready to accept new equipment and new methods than foreign countries. TEXTILES 371 Another manufacturer says: The policy of our company in regard to new or up-to-date equipment has been to keep our equipment as near par as possible, adding new equipment wherever new changes have shown themselves. This, we believe, has been the prevailing course pursued by our industry in general in New England. This sentiment is echoed in another reply : We might state that we have the best and most up-to-date machinery you will be able to find in New England — up-to-date in every respect for our purpose of making hatbands for men's hats. The executive of one of the newer concerns states as follows : Being a comparatively young company, we have followed the policy of in- stalling new and the most modern machinery available for our work. Even in the six years which we have been running we have found it necessary, in order to keep abreast of the times, to discard machinery that five years ago was the last word in efficiency, and install new. Recognition of the importance of proper equipment is given by another manufacturer, in the statement, " We are keeping our plant up-to-date in every particular, having recently added 100 looms of the most modern construction." The need for careful discrimination is indicated thus by another manufacturer : Our product is principally machine twist for the finishing trade, also dyed and gum silk yarn. Throwing machinery has changed but little during the last few years, except for improvements in detail. By buying new machinery we procure the latest type possible, and are regularly bringing our old ma- chinery up to date. This we think is tne attitude of the industry in general, as very little of the throwing machinery becomes obsolete. That silk manufacturers have had to face a difficult situation is indicated in the following statement from another executive: It is imperative, if one desires to stay at the top of any industry, to keep in line with the new, improved manufacturing installations. In the silk industry the conditions for the past few years have not been very bright, with the result that one must keep his expenditures for improvement in line with the yearly return. It is our opinion that there are more looms producing silk than there should be at the present time, but this is the condition, of all industries, and it will continue for years to come. It is merely a case/ of the survival of the fittest. SALES AND MARKETING The trend of sales made by these 31 companies from 1921 to 1925 was generally upward, with a sharp advance from 1921 to 1923, fol- lowed by a decline of about 13 per cent in 1924 and a partial recovery in the following year. Although the total sales for 1925 were much higher than in 1921, they represented a decrease of 6.7 per cent from the total of 1923. The figures for the respective years are $72,344,000 in 1923; $62,829,000 in 1924; and $67,478,000 in 1925. Only one company showed decreases in sales from 1921 to 1923, and all but three of them showed increases in sales from 1921 to 1925. One of the latter, a medium-sized concern in Massachusetts now making silk and rayon thread, showed a substantial growth in sales through 1923 and then fell back sharply in 1924, when it under- went a change in management. Its present president states, " Our difficulty is increased cost of raw materials and forced reduction in selling prices by large competitors," 372 INDUSTRIAL STRUCTURE OF NEW ENGLAND A Connecticut manufacturer of dress silk linings, doing a $400,000 business, experienced a sharp decrease in 1922, which was more than made up in the following year, with a greater reduction in 1924. This manufacturer explains this falling off as due to " use of cheaper qualities of goods and increasing use of clothing made by the large manufacturers of New York State and the West." A large manufacturer of silk velvet, with a business in 1921 of nearly $5,000,000, had a pronounced increase through 1923, followed by a sharp falling off in 1924 and 1925. Hhis product is marketed, without trade-mark, through a commission agent. The dropping off in sales is explained in this instance as the result of " style changes." A parallel experience, in slightly lesser degree, is reported by a manufacturer of millinery and dress velvets and plushes doing a $2,000,000 business, whose product (not trade-marked) is likewise marketed through a commission house. This manufacturer gives as the reason for decreased sales the fact that hat makers are moving to New York City. For the period from 1923 to 1925 the total sales of 22 companies making woven silk products or a combination of woven and other products, and representing the preponderant portion of the industry reported, showed in 1924 a pronounced decrease — about 14 per cent below the preceding year. Despite a partial recovery in the follow- ing year, the sales in 1925 showed a decrease of 7 per cent. On the other hand, the total sales of nine companies making other than woven silk products, representing a volume in 1925 of $3,627,000, showed a slight increase from 1923 to 1924, followed by a substantial increase in 1925, resulting in an average increase of about 23 per cent for the 2-year period. The manufacturers of other silk prod- ucts thus appear to have fared better than those making woven goods. Among the whole group of 31 manufacturers, 20 showed decreased sales in 1924, while 11 showed increases. In the following year the situation was reversed, with only 7 firms showing a recession of sales volume in 1925, while 24 showed increases. For the 2-year period 15 companies whose sales in 1925 amounted to $51,000,000 showed an aver- age decrease in sales volume of 15 per cent compared with 1923 ; while 16 firms with sales in 1925 totaling $16,500,000 showed an average increase of 35 per cent over 1923. Of the 12 companies having sales in 1925 exceeding $1,000,000, all but 4 increased their sales volume over the preceding year. Two of the firms with diminishing sales were manufacturers of velvet. One of the others was a manufac- turer of broad silk, with all of its products trade-marked, but doing no advertising and selling its products to retailers through commis- sion agents in New York. The other was a large manufacturer of a varied line of broad silk, velvet, cravats, and thrown and spun silk, selling its trade-marked products nationally to retailers, wholesalers, and manufacturers. Jts decrease in sales is charged to "general overproduction and increased competition." The treasurer of this company states, " Important factors in the silk business are manage- ment, labor conditions, sales and marketing methods, and sources of raw materials. Exports, transportation, and other factors play a TEXTILES 373 very small part in our business." Where total sales have decreased, the reason given by the greatest number is general overproduction. The companies reporting increased sales state that the chief con- tributing factor is new sales methods. New England is a minor market for most of the plants report- ing in the silk industry. A manufacturer of silk hatbands in Con- necticut doing a $500,000 business sell practically his entire product in New England, while another smaller company making a similar line sells 60 per cent within those States. Two manufacturers of twists, yarns, nubs, and sewing silk, and one concern doing commis- sion throwing, report 75 per cent of their business in New England, while another manufacturer of similar lines reports 50 per cent. Two of these concerns state that New England sales are increasing, and two of them that they are decreasing. The same number of companies stated that sales in New England were increasing as stated that they were decreasing, while three concerns reported that sales were unchanged. All the manufacturers of broad silk state that only a slight pro- portion — from 5 to 10 per cent of their sales — are in New England, and several state that none of them are. The principal market indicated by these manufacturers is in New York, New Jersey, and Pennsylvania, New York City appearing prominently. Five of the larger companies distribute their products nationally, while three other companies indicate important markets in the Middle West. A manufacturer of silk fishing lines reports a considerable portion of his market in the Southern States. Com- petition most frequently mentioned is that from the Middle Atlantic States, in which most of the market is located. Only a small num- ber stress competition from within New England. Only four companies report any direct exports. Two of these are small manufacturers of silk fishing lines, cord, and thread, re- porting 1 and 5 per cent, respectively. A Connecticut manufacturer of silk thread doing a $1,000,000 business reports exports of 5 per cent of the total, while another concern in the same State engaged in making threads and other silk fabrics doing a business of upward of $5,000,000, reports exports of 16% per cent. USE OF TRADE-MARKS AND ADVERTISING Most of the concerns indicating their practice in regard to the use of trade-marks reported that all or a major part of their products are marketed under a brand name; while 4 others brand a small por- tion of their products, and 6 reported the use of no trade-marks at all. Twenty-one companies indicated their practice regarding the use of advertising, while 14 ignored this question. Nine of the com- panies report the use of national advertising mediums, principally magazines and trade journals, supplemented by direct mail, and in one case by newspapers. Twelve concerns report no advertising. Advertising expenditures in 1925 for the entire group amounted to 2 per cent of the total value of sales. 61232°— 30 25 374 INDUSTRIAL STRUCTURE OF NEW ENGLAND METHODS OF DISTRIBUTION The marketing of silk goods is effected primarily through whole- sale channels, with the retailer secondary in importance. Ten manu- facturers reported the marketing of their products entirely through wholesalers, and 15 used this channel in addition to others. Sales direct to retailers were reported in 13 instances but always in con- junction with other channels, chiefly wholesalers, no manufacturer depending solely upon distribution through retailers. A manufac- turer of hatbands, linings, and related products sells his entire out- put direct to the consuming hat manufacturers. A maker of twists, sewing threads, and yarns sells direct to the consumer, who in this case is the manufacturer ; another maker of the same line of products has his own selling organization. Only two manufacturers (making braid and thread) reported a portion of their sales made direct by mail. The experiences of a few representative manufacturers of silk * goods, obtained by special inquiry, are presented to show the general sales plans and selling methods in use by some of the outstanding companies. One executive states, " Our general sales plan is the personal touch of our salesmen with the buyer connected with the industry. We have seven salesmen covering the entire United States and Canada." The sales plan of another company is stated thus : We try to sell a product, identified by our name, through the advertising efforts of salesmen. The number of salesmen in the territory covered by them is determined in part by the character of the business, the length of the jumps, and the number of customers and sales to be made. Salesmen are compensated upon a point system which takes into account the efforts necessary to make a sale and the profits to be obtained from it. The market is studied through reports of salesmen and statistical information obtained from trade associations and the trade press. Another manufacturer states, " Our usual plan with our salesmen is a commission basis, striving to make the territory as productive as possible in the interest of both seller and manufacturer." The selling organization of one of the largest silk manufacturers is described thus by its chief executive : Our sales are conducted through branch offices located in primary market points — New York, Boston, Philadelphia, Baltimore, Chicago, Cincinnati, St. Louis, St. Paul, and San Francisco. Each office is an independent unit, subject only to the general policies of the corporation office. Each office has its own corps of salesmen, carries stock, distributes the merchandise, and makes collec- tions. All together we have 150 salesmen. They are compensated entirely upon a commission plan, the commission being paid on net sales at the end of each month. Territories are assigned by each branch manager and are arranged as nearly as possible to balance territories and centralize the territory of each salesman. The executive of a concern whose market is chiefly local states: "Our business is localized to a great extent, and we have very few salesmen." Another states : " On account of the small size of the concern, our selling force consists of one general salesman and officer of the company. A large percentage of our business is done either by mail or telephone direct to the office." TEXTILES . 375 NEW CONDITIONS In common with other branches of the textile industry, the silk manufacturers of New England have had to meet new conditions of production and of marketing that have required considerable adjust- ment on their part. These problems have not been confined to New England, but have faced the industry as a whole. The outstanding new situation in this industry is that arising from the development and use of rayon. Whereas the earlier attitude toward this new fabric was one of rivalry and competition, rayon has come to be looked upon more and more as a supplementary asset in the silk in- dustry. Minor changes in manufacturing processes have been neces- sary for the most part. In regard to conditions of manufacture the executive of a large silk plant writes as follows : In the consumption of machine twist for stitching the demand changes but little, excepting that the tendency is running to finer sizes and the usual changes of colors depending on the seasons. In the hosiery business where a gum silk is sold largely by us, the demand is changing from circular knit to full-fashioned, requiring an entirely different construction and quality of yarn, but which can be made on the same machinery. Many of our customers using dyed yarn, also silk wound on cops for weaving, have changed from silk to rayon. With minor changes of equipment, these yarns are run on the same machinery formerly used for the real silk. The significant changes that have taken place within the last few 3 7 ears in the marketing of silk products are reflected in the following quotations from executives of important companies in this industry. These statements indicate the new marketing conditions that have to be dealt with. One executive states : Some years back there used to be a distinct line between the manufacturer and the jobber. The manufacturer used to make goods for the jobber, who would anticipate his needs, and the jobber bore the burden of carrying large assortments from which the small dealer could supply his wants. The market has now changed. The manufacturer with the selling organization is now both manufacturer and jobber, as competition has forced business to recognize but one small profit. In fact, the condition of the silk-weaving industry is such that the leading concerns will have to own their own dyeing plant and their own throwing plant in order to be on a competitive basis, and to make one profit for the entire operation. This requires a tremendous investment, and, in so far as the profits are not in proportion to the risk taken, there will be naturally a tendency to discourage further investment in the silk field. Prob- ably in this manner conditions will right themselves again after a period of years. This attitude is reflected in the statement of another executive : There has taken place very marked changes in what is known as hand-to- mouth buying, which in general means that the distributors are buying much closer to the demands of the market than they have done in the past. As a result the manufacturers have to carry a larger portion of the responsibility for stock than they have done in the past; it is possible that the total stock of the new system is less than it has been heretofore, but unquestionably the burden on the manufacturer is greater. Another manufacturer states : "As our production goes entirely to woolen and worsted mills, the so-called hand-to-mouth buying by industry has necessitated our carrying large quantities of our prod- ucts ready for immediate shipment." 376 INDUSTRIAL STRUCTURE OF NEW ENGLAND The following statement of an executive refers to the increasing concentration in the silk industry : " The changes that have taken place during the last five years from the standpoint of marketing are that we have less than one-quarter of our former customers but are doing a much larger business, showing more concentration in the industry." The difficulties of the marketing situation are thus expressed by the executive of another company : " The most difficult marketing problems to-day arise from lack of knowledge of future require- ments and lack of future delivery orders, also uncertainty of size requirements and quality, which all tend to bring the business in the main to a spot delivery basis." That the New England manufacturers of silk goods are generally alert to the need for special attention to the marketing and selling of their products is indicated by the fact that a substantial majority of concerns stated that they are concentrating effort upon these phases of their business. KNIT GOODS Although the income from separate knit-goods establishments in New England comprises only a small fraction (1.1 per cent) of the region's total revenue from all its manufactures, yet the substantial importance of this textile line is apparent from the fact that in 1925 it contributed upward of $33,000,000 to the New England income and engaged the activities of more than 19,000 persons, who were paid some $20,000,000 in salaries and wages. The value of the product exceeded $79,000,000, representing slightly less than 10 per cent of the national total. These figures include only the data for establishments engaged primarily in making knit goods and do not include the knit goods made as secondary products in other textile plants. They include knitted fabrics made of cotton, wool, silk, rayon, and their mixtures. The principal producing regions of knit goods lie outside New England — in Pennsylvania and New York. These two States pro- duce more than half the United States total, and each one of them produces more than twice the production of all New England. Other important producing States are Wisconsin, Tennessee, North Caro- lina, and New Jersey, in the order given, contributing together about 22 per cent of the national output. Massachusetts had in 1925 more than half of the 159 knit-goods establishments of New England and contributed 62 per cent of the region's revenue from this source, amounting in this State to more than $20,000,000. Khode Island and New Hampshire are of ap- proximately equal importance in this line, these two States together contributing $7,700,000 to the New England revenue from this source and representing 23 per cent of the region's total; Connecti- cut contributed 8 per cent, and Vermont not quite 7 per cent. IMPORTANCE IN INDIVIDUAL STATES The importance of the knit-goods industry to the individual States is greatest in Vermont and New Hampshire and least in TEXTILES 377 Connecticut. In Vermont this industry represented 3.6 per cent of the State's total manufacturing income and in New Hamp- shire 2.7 per cent, while in Connecticut it was less than one-half of 1 per cent. In Massachusetts and Rhode Island it was of approxi- mately similar importance, representing 1.3 per cent in the former State and 1.4 per cent in the latter. The position of the individual States in the New England total is shown in the following table. Knit Goods Industry in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 93 88 21 23 16 17 15 21 7 8 3 9,660 10, 551 1,636 1,821 2,032 2,444 1,367 1,657 1,184 1,257 18 9,339 9,715 1,783 1, 899 1,785 2,078 1,421 1,661 1,103 1,088 13 22, 316 25, 903 6,429 6, 607 4,083 6,089 2,319 4,082 2,425 332 47 43, 937 46, 387 10, 724 10, 605 7,093 9, 790 5, 181 6,741 5,160 5,639 90 21, 621 1925 20, 484 4,296 Rhode Island: 1927 1925.. _ 3,999 3,010 New Hampshire: 1927 1925 .. 3,701 Connecticut: 1927 2,862 1925 2,659 2,735 Vermont: 1927 1925.. 2,307 Maine : 1927 43 Total: 1927 155 157 15, 897 27, 730 15, 444 17, 730 37, 618 46, 013 72, 186 79, 162 34, 568 33, 150 1925 PRINCIPAL MATERIALS USED As a market for various materials used in manufacture, the im- portance of the knit-goods industry in New England is indicated by an outlay in 1925 of more than $45,000,000. This was used in the purchase of raw materials and in expenditures for fuel, power, and mill supplies. The chief material purchased is yarns, prin- cipally of cotton, and also woolen, worsted, and rayon. Although most of this industry uses yarns purchased from other establish- ments, some raw cotton, wool, and other materials are purchased. The volume of the principal items that were purchased in 1925, 1919, and 1914 is shown in the next table, in so far as data are available for separate States. Comparison of these years shows substantial increases since 1914 in the consumption of cotton yarn, also of woolen, worsted, marino, and silk yarns, as well as in the use of cotton waste. Sharp reductions are noted in the consumption of raw cotton and raw wool, also of recovered wool fabric and wool waste. 378 INDUSTRIAL STRUCTURE OF NEW ENGLAND Materials Used in New England Knit-Goods Industry Material and State Thousands of pounds 1925 1919 1914 Cotton yarn, not mercerized: Connecticut, Massachsuetts, New Hampshire, Rhode Island, and Vermont _. _ 15, 153 2,009 67,044 1,466 10, 353 4,469 24, 546 1,111 10,090 339 8,790 4,213 66, 068 2,134 21,250 539 6,223 369 4,213 165 3,415 348 9,984 18,941 1,862 30, 519 375 5,384 2,480 12, 636 1,025 6,965 284 5,711 18, 688 93,050 2,032 24, 832 1,259 4, 518 1,155 4,116 600 5,367 827 5, 026 I 10, 319 1,260 15, 673 123 Cotton yarn, mercerized: Connecticut, Massachusetts, and Rhode Island.. _ ... . United States total . .__ . ... Woolen yarn: Massachusetts. . _ ___ United States total 7,145 Worsted yarn: Connecticut, Massachusetts, New Hampshire, and Rhode Island United States total _. __ 3,046 14, 305 735 Merino yarn: Connecticut, Massachusetts, and Rhode Island ___ United States total 4,333 292 Silk yarn and spun-silk yarn: Connecticut, Massachusetts, and Rhode Island _ United States total __ __ ... _ __ __ ... _ _ 1,913 Raw cotton: Connecticut, Massachusetts, and New Hampshire . , _____ 17, 462 United States total 88, 390 Cotton waste: Connecticut, Massachusetts, and New Hampshire 1,147 United States, total _____ 24,304 Wool, in condition in which purchased: Connecticut, Massachusetts, and New Hampshire. _ 1,576 United States, total _ _ _ _ _ __ ______ 6,948 Wool, equivalent to above in scoured condition: 1 Connecticut, Massachusetts, and New Hampshire __ 1,421 United States, total... _ _ . _.. 6,072 Recovered wool fiber: New Hampshire . .. 609 United States, total 3,454 Wool waste and noils: Connecticut .. 812 United States, total _ .__ . . . . . . . . _ . 5,946 1 Exclusive of New Hampshire and Vermont. NoTE.--This incomplete table includes only data for the States for which separate statistics are avail- able. The amount of rayon consumed by the knit-goods industry is not segregated for New England. For the United States as a whole the consumption in 1925 was reported as 23,680,000 pounds, of which nearly one-half was used in making hosiery. NATURE OF PRODUCTS The knit-goods industry has four recognized branches, according to the nature of its products. In New England the principal prod- ucts are underwear and hosiery, and the importance of each of these as a source of income is approximately the same. Of lesser signifi- cance is the making of outerwear and of knitted cloth, each of which contributes about the same proportion. The greatest number of establishments, however, is engaged in making outerwear. Of the New England total of 56 in this line there were 39 concerns in Massa- chusetts find 9 in Connecticut. There were 48 establishments mak- ing hosiery, which were fairly well distributed in the different States. There were 36 establishments engaged in making underwear; 20 of these were in Massachusetts, and the rest were distributed in the other five States. The manufacture of knitted cloth was reported by 19 concerns in Massachusetts, Rhode Island, and Connecticut. TEXTILES 379 In terms of the relative position of New England in the national production of these individual lines, knitted cloth leads. The value of this product in Massachusetts and Rhode Island was 20.8 per cent of the national total. The underwear produced in Massachusetts, Connecticut, and Vermont comprised 14 per cent of the value of the national production. Hosiery produced in Massachusetts, New Hampshire, Rhode Island, and Vermont amounted to 6.6 per cent, and the outerwear reported for Massachusetts and Connecticut was 5.7 per cent of the national total. The importance of each of these four branches of knit-goods manu- facture in each State for which separate data are available for 1925 is shown in the following table. Distribution of Knit-Goods Industry, by States, in 1925 Estab- lish- ments Thousands of dollars Branches of industry and State Value of products Value added by manufac- ture Hosiery (48 establishments) : Massachusetts ! __. 18 13 10 3 15, 802 7,905 3,365 622 6,738 New Hampshire . _ _ _ _ _ _ _ __ 3,135 1,704 242 Rhoflft Island _._... Vermont Total, 4 States 1 ___. 44 683 27, 694 421, 180 11,819 193, 038 United States total Underwear (36 establishments) : Massachusetts __ _ __ __ __ _ 20 7 5 15, 733 5,577 5,016 7,866 2,262 2,065 Connecticut- __ _ . -_ . Vermont _ __ ___ _ _. Total, 3 States 2 . 32 298 26, 327 188, 570 12, 193 77, 797 United States total Outerwear (56 establishments) : Massachusetts.-. __ . _. 39 9 7,777 459 3,326 175 r,ormp!p,tif>,nt Total, 2 States 3 . _ 48 874 8,236 143, 502 3,501 United States total 65, 954 Knit cloth (19 establishments) : Massachusetts . _ .. 11 7 7,073 4,689 2,554 Rhode Island 1,345 Total, 2 States < _ 18 132 11, 762 56,708 3,899 United States total ._ 19, 245 1 Connecticut has 4 establishments. 2 New Hampshire and Rhode Island each has 2 establishments. 3 Maine has 2, New Hampshire 2, and Rhode Island 4 establishments. * Connecticut has 1 establishment. TREND OF MANUFACTURE In New England the knit goods industry showed a gradual but continuous growth up to the end of the World War. There has been no wide variation in the number of persons engaged since 1909, except in the maximum year 1919 and again in 1923, when the num- ber was 1,500 less than in 1919. In the year of greatest output (1919) the number of establishments was 12 less than in 1914. The 380 INDUSTRIAL STRUCTURE OF NEW ENGLAND total number in 1923 was the same as in 1914, and in 1925 the number of establishments was four less than in 1923. Comparison of figures for various census years shows a much greater expansion of this industry in the States outside New England than within the region. A gradual and continuous re- cession is thus noted in New England's relative national position. In 1880 New England contributed 27 per cent of the value of the total knit-goods output of the United States, in 1900 less than 19 per cent, in 1914 less than 13 per cent, and in 1925 less than 10 per cent. In the 10-year period from 1904 to 1914 the New England income from knit-goods manufacture increased 34 per cent; but in this period the increase for the country as a whole was 87 per cent. The increase in New England income from 1914 to 1925 was 118 per cent, while the national increase from this industry was 217 per cent. The New England revenue from the knit-goods industry in 1923 was only $500,000 below the 1919 maximum of $35,649,000, but for the United States as a whole there was an increase of $78,000,000 in this interval. The New England income in 1925 showed a falling off from 1923 of somewhat over $2,000,000, a reduction of about 6 per cent ; for the country as a whole there was a falling off in 1925 of $8,000,000, a reduction of 2.3 per cent. In the next table is shown, for New England and for the rest of the country outside New England, the importance of knit-goods manufacture in each census year from 1880 to 1925. New England Knit-Goods Industry, 1880-1927, Compared With Rest of United States Establishments Persons engaged Salaries and wages New England United States outside New England New England United States outside New England New England as per cent of United States Thousands of dollars New Year New England United States outside New England England as per cent of United States 1927 155 157 161 156 147 161 137 132 133 166 LOS 0) 1,830 2,162 1, 922 1,903 1, 461 1,237 947 788 630 256 0) 19, 191 21, 287 19, 089 22,843 20, 780 19, 913 17, 674 15,578 13, 091 7,818 C 1 ) 182, 912 190, 083 156, 575 163, 830 138, 893 116,217 90, 345 71, 394 48, 118 21,067 0) 9.5 10.1 10.9 12.2 13.0 14.6 16.4 17.9 21.4 27.1 0) 19,994 21, 652 18, 040 21, 511 10, 018 8,557 6,755 5,438 4,137 1,919 0) 184, 182 183, 034 141, 889 136, 015 61, 021 43, 875 29, 218 22, 045 14, 126 4,782 0) 9.8 1925 2 1923 2 10.6 1921 11.3 1919* . 13.7 1914 . 14.1 1909 16.3 1904 18.8 1900 19.8 1890 22.7 28.6 available. ' Exclu Ive <'f 2 <• tablishmentc m Maine, to avoid disclosing individual operations. <■ of 1 e tabli bment in Maine, to avoid disclosing individual operations. TEXTILES 381 New England Knit-Goods Industry, 1880^1927, Compared With Rest of United States — Continued Cost of materials Value of products Value added by manufacture Thousands of dollars New England as per cent of United States Thousands of dollars New England as per cent of United States Thousands of dollars New Year New England United States outside New England New England United States outside New England New England United , States outside New England England as per cent of United States 1927 1925 1923 1921 1919 1914 1909 1904 1900 1890 1880 37,618 46, 013 49,168 36, 875 52, 124 18, 263 16, 222 13, 576 9,325 8,100 4,035 386, 482 407, 913 434, 852 323, 583 374, 972 128, 424 94, 019 63, 018 41, 747 27, 762 11, 176 8.9 10.1 10.2 10.2 12.2 12.5 14.7 17.7 18.3 22.6 26.5 72, 186 79, 162 84,390 64,113 87, 772 33, 426 30, 991 24, 795 17, 835 15, 110 7,913 744, 434 730, 798 763, 787 569, 961 625, 368 225, 487 169, 153 111. 763 77,648 52, 131 21, 254 8.8 9.8 9.9 10.1 12.3 12.9 15.5 18.2 18.7 22.5 27.1 34, 568 33, 150 35, 222 27, 237 35, 649 15, 163 14, 769 11,219 8,510 7,010 3,878 357, 953 322, 884 328, 935 246, 379 250, 395 97, 062 75, 133 48, 745 35,901 24, 369 10, 078 9.7 9.3 9.6 10.0 12.5 13.5 16.4 18.7 19.2 22.3 27.8 PRESENT CONDITION OF THE INDUSTRY The various branches of this industry have undergone different experiences in the last few years. Knit underwear has followed quite closely the recent developments in cotton goods. Here the particular field of New England is in making high-quality products, although the rivalry of other regions in these lines has become more and more keen. In the production of coarse staple underwear New England manufacturers now play a minor part; and, since the coun- try's export trade is made up mainly of coarse staples, the New Eng- land product in this branch of textile manufacture' does not find any considerable outlet in foreign markets. . Despite adverse conditions of the last few years, a number of the larger New England manufacturers of knit underwear have con- tinued to carry on a profitable business. One of the important assets of such concerns has been their established reputation for high quality, based upon well-known trade-marks. Most of the compa- nies which have met with particular success have been those selling direct to the trade through their own carefully planned selling organizations. The knitted outerwear industry is one of comparatively recent growth, rising from a national production in 1899 of not more than $8,000,000 to nearly $200,000,000 in 1923. In the last few years fun- damental and permanent changes have taken place in the demand for knitted outerwear, so that the present market is less for staples than for novelties, in which emphasis is placed upon color, attractiveness, style, and fit. In these changes the opinion of the trade is that New England manufacturers have often shown a reluctance to fall in line with modern developments, so that the rest of the country has out- stripped this region both in volume and in methods of distribution. Recently, however, there are evidences of awakening on the part of New England manufacturers of outerwear. 382 INDUSTRIAL STRUCTURE OF NEW ENGLAND In the distribution of knitted outerwear there has been a consider- able trend toward direct sale to the retail trade, especially to the de- partment stores, chain stores, and large mail-order houses. An au- thentic opinion from the trade is that not more than 30 or 35 per cent of the business in outerwear now goes to wholesalers. The carrying of stock, which was formerly one of the main functions of the whole- saler, has come to devolve largely upon the manufacturer. The wholesaler's function has become increasingly a financing one, in- volving the assumption of credit risks and providing a steady stream of orders to assure regular operation. The following analysis of the experiences of representative makers of knit goods, as presented in their replies to a special inquiry regard- ing their manufacturing and marketing practices, indicates the gen- eral condition of the industry in New England during the last few years. EXPERIENCES OF KNIT-GOODS MANUFACTURERS The replies received from manufacturers of knit goods represented nearly two-thirds of the entire 1925 output of New England, which was in excess of $79,000,000. Replies were received from 69 manu- facturers, whose sales as reported for 1925 were over $51,000,000 and whose total average employment for that year exceeded 10,000 per- sons. This knit-goods group includes knitted fabrics made from cotton, wool, rayon, or silk, either alone or in combination. The establishments were classified, according to the nature of their products, in three groups. The first of these, comprising the manu- facturers of underwear for men, women, and children, included 29 establishments with total sales of over $25,000,000, thus accounting for nearly one-half of the total reported. There were 21 firms re- porting the manufacture of knitted outerwear, with total sales of nearly $8,000,000. These were principally sweaters and bathing suits. The third group includes manufacturers of hosiery for men, women, and children, in which there were 19 manufacturers with total sales of over $17,500,000. MATERIALS The materials most generally used in knit-goods manufacture are cotton and woolen or worsted yarns. Twenty-five firms reported the use of rayon and 20 the use of silk. Of the underwear manufactur- ers. 14 mentioned rayon and 9 silk, while 13 firms make no mention of the use of either. All the manufacturers of outerwear report the use of woolen or worsted yarns, and three mention silk or rayon. All the hosiery manufacturers report the use of cotton or cotton yarn, while 12 of them use also worsted or woolen yarns, 10 rayon, and 9 silk, and 3 use some reworked wool. Thus over half of the reporting underwear manufacturers and manufacturers of hosiery use rayon or silk, or both. These materials find very little use in outerwear manufacturing. All the outerwear manufacturers and many of the hosiery manufacturers report the use of woolen or worsted yarns, while all the hosiery manufacturers use some cotton yarn. The cotton, rayon, and silk materials used by these manufac- TEXTILES 383 hirers were obtained, in the majority of cases, from sources outside New England, while woolen and worsted yarns were purchased from local sources. SIZE AND AGE OF ESTABLISHMENTS The group includes establishments in each State, with a wide range in size of individual operations. Of 59 knit-goods manufac- turers reporting annual sales figures, there were 15 whose sales in 1925 exceeded $1,000,000 each; 14 with sales between $500,000 and $1,000,000; 21 between $100,000 and $500,000; and 10 under $100,000. Sixteen of the underwear manufacturers exceeded $500,000 each, while 11 were less than $500,000. Only 6 of the 16 outerwear manu- facturers and 7 of the 15 hosiery manufacturers exceeded $500,000. There were 10 underwear manufacturers, 3 manufacturers of outer- wear, and 2 manufacturers of hosiery each having sales exceeding $1,000,000. It thus appears that there was a relatively higher pro- portion of large firms reporting in the underwear group than in either of the other two. Of 62 knit-goods manufacturers indicating average annual em- ployment, 32 reported an average of fewer than 100 persons, and 30 reported more than 100 persons employed. Twenty-six establish- ments reported employment between 100 and 500 persons each, while 2 underwear manufacturers and 2 hosiery manufacturers employed over 500 persons each, 1 hosiery manufacturer employing nearly 1,000 and another nearly 2,000 persons. Only four of the outer- wear manufacturers exceeded an employment of 100 persons, and the highest number for these four was 350 persons. Only 8 of the 27 manufacturers of underwear employed fewer than 100 persons, while 9 of the 15 hosiery manufacturers gave employment to fewer than 100 persons. That the manufacture of knit goods is one of the older industries of New England is indicated by the fact that 12 of the reporting establishments have been in existence continuously over 50 years and one of these more than 100 years. Eighteen establishments have been in existence between 25 and 50 years, and 14 between 10 and 25 years. It is apparent, however, that this industry has had consid- erable development in recent years, as there were 25 firms reporting an age of less than 10 years, and 10 of these had been established within 5 years. The manufacture of underwear in New England is much older than that of hosiery or outerwear ; 20 of the 29 underwear firms were over 25 years old, while only 7 of the 19 hosiery firms, and only 3 of the 21 outerwear firms, had been in operation 25 years. On the other hand, only 4 underwear plants had been established within 10 years, in contrast to 8 hosiery firms and 13 outerwear firms. Changes in management within the past 10 years were indicated by 16 of the knit-goods manufacturers, six of which took place after 1921. There were 7 underwear manufacturers doing over a $500,000 business in 1925, whose business had changed management within 10 years, while there were 4 outerwear and hosiery establishments whose management had been changed within that period ; in addition there were 4 large new establishments in these lines. No tendency was indicated to change from the original use of plants, and practically 384 INDUSTRIAL STRUCTURE OF NEW ENGLAND no instances were found where manufacturers had shifted from another line of products to the manufacture of knit goods. Branch plants were reported by 9 companies with a total of 18 branches ; of these 13 are in New England, 3 in the South, 1 in Philadelphia, and 1 in New Jersey. Increases in capacity of plants since 1921 were indicated by 19 establishments, with additions ranging from slight amounts to a doubling of capacity. A large Massachusetts manufacturer of in- fants' and children's underwear and hosiery, whose sales have shown a substantial growth each year, reported that his plant capacity was more than doubled. A New Hampshire manufacturer of women's and infants' underwear doing a $500,000 business increased his pro- duction 100 per cent in 1926 by consolidating with another mill in the same State. A small Rhode Island manufacturer of worsted bathing suits and jerseys reported a doubling of production; and a small Massachusetts manufacturer of worsted, rayon, and mercerized cotton half hose increased his production capacity by 100 per cent. A medium-sized establishment in Connecticut, making ladies' silk hose, increased its capacity 80 per cent, while a manufacturer of athletic underwear in that State doing a $500,000 business reported increased production of 60 per cent. Increases of 50 per cent were reported by a Massachusetts manufacturer of ladies' silk hosiery, and by a New Hampshire manufacturer of a general line of worsted and cotton hose doing a $500,000 business, while a Massachusetts manufacturer of men's, women's, and children's underwear doing a $2,000,000 business reported the addition of two new buildings. A number of other firms reported increases of 10 to 25 per cent in their producing capacity. PLANT ACTIVITY The relative degree of activity in knit-goods manufacture in 1925 is shown by the fact that of 57 firms reporting, 33 were operating their plants at 75 per cent or more of maximum capacity, while there were 16 operating at one-half to three- fourths of maximum capacity and 8 others below one-half capacity. The manufacturers of hosiery and of underwear reported a higher proportion of activity than did those of outerwear. Twelve hosiery manufacturers out of 19 reporting were running at 75 per cent of capacity, or better, while there were 16 of the 25 underwear replies indicating such activity, in contrast with only 5 of the 13 replies for outerwear. All but two of the knit-goods establishments doing business of $1,000,000 or over in 1925 were operating at 75 to 100 per cent of their maximum capacity. TREND OF SALES The trend of sales from 1921 to 1925 was indicated by the replies of 51 concerns which gave continuous figures for each of these years. Thirty-nine of these concerns had greater sales in 1925 than those of 1921, while 12 firms showed a reduction. For the 2-year period from 1921 to 1928 there were 41 establishments whose sales showed an increase, while there were 10 Hint, had decreased sales. Underwear manufacturers showed for these periods a distinctly higher propor- tion of increasing sales than did the outerwear and hosiery manu- TEXTILES 385 facturers. All but 1 underwear firm increased their sales from 1921 to 1923, and all but 4 increased from 1921 to 1925 ; while there were 9 outerwear and hosiery manufacturers whose sales decreased from 1921 to 1923, in comparison with 17 whose sales increased; and 8 firms whose sales in 1925 were less than those in 1921, compared with 18 whose sales showed an increase for the period. For the 2-year period from 1923 to 1925 there were 55 reporting manufacturers of knit goods whose sales as a total showed' a very slight increase — 3 per cent — for 1925 over those for 1923. The total sales for 1923 were $49,848,000; for 1924, $45,199,000; and for 1925, $51,340,000. In 1924 the total sales decreased 9.3 per cent from the preceding year, but this decrease was offset by an increase of 13.6 per cent in the year following. Of the 55 concerns making up the total figures, increased sales from 1923 to 1925 were shown by 31 establishments, whose total sales in 1925 exceeded $30,000,000, the average rate of increase being 23 per cent; while there were 24 firms, representing total sales in 1925 of over $21,000,000, whose individual sales decreased, with an average rate of 16 per cent for the group. The 25 underwear manufacturers included in these figures showed total sales in 1925 practically the same as those in 1923, there being only the very slight decrease of two-tenths of 1 per cent. Sixteen of these establishments showed an average rate of increase of about 14 per cent, while nine others showed an average decrease of about 17 per cent. In contrast, the 30 outerwear and hosiery manufac-, turers showed an average increase of 6.4 per cent from 1923 to 1925. Included in these were 15 firms whose aggregate sales in 1925 were 36.7 per cent greater than in 1923 ; and 15 other concerns showed an average decrease of 15.4 per cent for the same period. Comparison of these figures indicates that a higher proportion of the underwear establishments had increases in sales from 1923 to 1925, as well as from 1921 to 1923, than was the case with the outerwear and hosiery manufacturers ; but that among individual establishments making outerwear and hosiery there was a much greater contrast than among those making underwear. LOCATION OF MARKETS Over two-thirds of the firms making knit goods indicated that a majority of their sales were made outside the New England States. The principal markets outside New England were indicated to be in the Middle Atlantic States and in the Middle 'West. Nineteen manufacturers indicated that they distributed their products nation- ally, 7 marketed a portion of their products on the Pacific coast, while only 3 indicated sales in the Southern States. Competition is most often mentioned as coming from southern cotton manufacturers or from the Middle Atlantic States. Only two manufacturers indicated exports in any considerable volume. A manufacturer of athletic underwear doing a $500,000 business reports exports amounting to 4 per cent of his sales, while a hosiery manufacturer doing an annual business worth several million dollars has upward of one-fourth of his sales outside the United States, 386 INDUSTRIAL STRUCTURE OF NEW ENGLAND MARKETING PRACTICES Although a number of manufacturers did not indicate their prac- tice in regard to the use of trade-marks, there were 48 who made definite statenients. Of this number 30 firms reported the use of trade-marks on half or more of their products, while 13 use a trade- mark on less than one-half, and 5 firms stated no use of trade-marks. No pronounced contrasts were indicated between makers of under- wear, outerwear, and hosiery. Of 38 firms which indicated their practice regarding advertising, there were 21 making use of advertising mediums and 17 which stated definitely that they do no advertising. Fifteen of these 21 firms report national advertising, 3 report local advertising, and 3 use both. The manufacturers of underwear and hosiery indicated various advertising mediums, the principal ones being magazines, newspapers, and trade journals. Among the outerwear manufac- turers, trade journals stand out as the principal mediums. Nine firms indicated this, while several others reported the use of dealer helps, direct mail, and newspaper. The average selling cost in 1925, as reported by 52 knit-goods manufacturers, was approximately 10 per cent of total sales for that year. CHANNELS OF DISTRIBUTION The distribution channels prevailingly used by manufacturers of knit goods are direct sales to retailers or sales to wholesalers. Forty- seven firms indicated that they use only one channel of distribution, and 21 other concerns make use of two or more channels. Of those using single channels, 20 firms reported that they make their sales direct to retailers, 16 make sales direct to wholesalers, while 8 re- ported sales through commission agents and 3 sell direct to the con- sumer. Where more than one channel of distribution is used, the most frequent combination is wholesaler and retailer or wholesaler and commission agent. A few concerns reported selling to exclusive wholesale or retail distributors. The form of sales organization prevailing among the larger manu- facturers of knit goods is indicated by quotations from the execu- tives of representative plants. One of these states : We have four salesmen carrying our line exclusively and three carrying it in connection with another line. We pay our men on a commission basis with usual drawing account. This has proven very satisfactory. Another states : We have six salesmen traveling out from New York all over the United States, from Maine to California, and down as far as Texas. They receive their compensation through commissions for sales rendered. The territory is divided among these men, who travel at least three or four times a year over the same territory. Methods of studying the markets are through these different salesmen. According to another : We have five salesmen, and most of the directing is done from our New York office, where we bave three permanent men on salary and commission. This office and the mill work together on the best methods to follow. We believe the h'st way to get the business is to keep after it and give the bes*; service. poe ibie. TEXTILES 387 Two other executives report that sales are handled entirely from their New York offices, one of these selling through a commission agent who handles the actual selling and the relationship to the trade. The practice of marketing through a selling house is explained by one executive as follows : Our general sales plan is the same now as in the past. We have a com- mission house in New York that sells, bills, etc. This guarantees all accounts, so we do not have any losses from this source ; but in a few cases, where the merchandise is made up on orders and in the warehouse in New York or here, when the time for shipment comes the selling house does not consider the customer safe. The result is that the goods are left on our hands to be sold, generally at a loss over what we should have received for them. At the pres- ent time we are not contemplating very strongly making a change in our method of selling. From another executive comes the following : Our goods are distributed to sales territories planned by our selling agents, who travel with them from New York, covering the entire country. We also sell our goods through the offices of our corporation. We believe that the time has come when more individual sales policies should be adopted. By this I mean that manufacturers should have their own sales-organization men on their pay roll, either with a drawing account or a commission basis, which- ever will work out the most satisfactorily to both. We also believe that a representative should not handle other lines which conflict. In fact, I be- lieve that the high-pressure salesmanship concentrated on one line is much more effective, and should we feel that we could afford to adopt this new plan I think ultimately it would work out to our interest. As the initial expense for the first year or two would be quite high, the results might not be as satisfactory as we desire ; and it is a question whether the missionary work done in a year or two will lay the foundation for a satisfactory trade. A company which deals directly with the retailer and does not sell to jobbers provides compensation for its 60' salesmen according to the possibilities of the territory and their experience, using in- tensive national advertising to stimulate consumer demand, and also to facilitate introduction of goods in new territory by the personal visit of salesmen. Another manufacturer describes his sales organization thus: In our case we have about 20 salesmen covering the entire United States, excepting the Pacific coast, which has been assigned to a jobber distributing our underwear under own own plans. Our men are paid in various ways, in- cluding straight salary, straight commission, and drawing account against a commission. Territories are assigned in such a way as to secure the most business in any particular section, at the same time allowing the salesmen^ an opportunity to secure a fair return. The markets are studied by noting results through consultation with buyers and salesmen and other distributors. Another manufacturer discusses the distribution of his efforts as follows : We employ a couple of line salesmen who are generally on commission, and we are endeavoring at the present time to obtain more extensive coverage of the more densely populated States and Territories, and thus endeavor to set quotas for all our various salesmen. The number of changes and improvements reported by different manufacturers indicates that the knit-goods industry in New Eng- land has put forth a good deal of effort to adjust itself to changed conditions in marketing and in type of demand for its products. Most of the replies indicate special attention to sales and marketing methods, and to management and production factors. Changing 388 INDUSTRIAL STRUCTURE OF NEW ENGLAND from cotton or woolen to rayon and silk products or mixtures 1ms been quite general. One manufacturer of knit underwear, doing a business in excess of $500,000, whose sales have shown a steady but conservative increase since 1921, mentions the development of a full line of rayon gar- ments, and emphasis upon lower price production numbers. He also speaks of having effected improvement in production control through monthly records of cost-account statistics. Another under- wear manufacturer, doing a $2,000,000 business and employing 500 workers, states that production control has reduced work in process about 50 per cent, and that sales in New England have been increased by changing from knit underwear to rayon and silk. Another concern having a continuous increase in sales states that production and quality have increased at least 33V3 P er cen ^ since 1921, as a result of improved management and organization, while a Boston manufacturer of infants' and children's underwear says that standardization has improved his product 20 per cent. Another manufacturer of a similar line, doing a $1,500,000 business, speaks of balancing inventory with demand, to cut down investment, at the same time having merchandise for customers' prompt requirements. He credits his continuous increase in sales to " up-to-date sales meth- ods, good merchandise, and service to customers, applying broad viewpoint learned from dealing with entire country, and trying to forget that what our grandfathers did should never be changed." One of the largest manufacturers of knit and nainsook underwear in New England, selling a trade-marked product direct to retailers, has developed rayon products to keep up production, naming as the most important improvement " better balance, prompter service, more even production." A small manufacturer of women's silk and rayon underwear speaks of improvement of product, and closer figuring to meet competition, while a manufacturer of athletic underwear, whose sales in New Eng- land have been decreasing, attributed this falling off to a demand for cheap merchandise. One of the larger hosiery manufacturers, with a national distribu- tion of silk and silk-mixed hosiery, reports an increase of sales result- ing from the development of sales efforts ; while a small manufacturer of men's half hose credits increased sales to a more aggressive selling campaign. A manufacturer in western Massachusetts, with a #500,000 business operating at full capacity, whose trade has grown substantially every year since 1921, credits the increase in sales to larger production and improved merchandise, supported by sales and marketing methods. This manufacturer sells direct to retailers. A new hosiery concern, which started in 1922 in a small way, has had a pronounced growth, with two separate additions to the capac- ity of lis plant. Increased sales are credited to selling organization and new sales methods. A million-dollar' firm operating at full capacity, with a gradual increase since 1021, which makes 75 per cent of its sales in New Eng- land, credits the increase in New England sales to the more intensive covering of local territory, and lowered manufacturing costs through production control. TEXTILES 389 A company doing several million dollars' worth of annual business in hosiery, with a newly added line of underwear, had a falling off in sales from 1922 to 1923; but by making adjustments then its busi- ness has shown a continuous growth each year since. The greater portion of its product is marketed through wholesalers, but some through retailers direct. Increased sales in New England are cred- ited as due to improved service, quality, and distribution. Its treas- urer writes as follows: There has been a constant improvement in quality and distribution, to which many factors have contributed. The main efforts are directed to development of export markets in a climate that uses our product during the slack season, and to styling the product to widen our domestic market during this slack period. The organization of a styling department with executive authority and wide scope for collecting data is an important development. A small Rhode Island manufacturer of men's seamless hose, selling his product direct to wholesalers, states : In the past wei have found that we are not able to sell locally. After re- peated efforts we have abandoned the idea of selling both to the New England jobber and to the retailer. New York jobbers at present, and Chicago jobbers in the past, have been our best customers. Decreasing sales of a New Hampshire manufacturer of woolen hosiery, whose product is marketed through a commission agent in New York City, are explained as resulting from changes in mode of wearing apparel and from inability to manufacture goods that the trade demands in his section. This manufacturer states : Buying policies of jobbers during the last five years have changed very materially. Instead of placing their orders well in advance of their require- ments, or rather anticipating their requirements, they will not place orders with the manufacturers now until well into the season, thus causing mills to run slack or close down several months during the year. A large manufacturer of wool bathing suits, sweaters, and sport garments, doing a national business of over $1,500,000, expresses an- other difficulty in his line, as follows : We believe that we have one of the most thoroughly equipped mills in the country. Our line consists, for the greater part, of staple-styled merchandise, in contrast with fancy merchandise. We constantly add new and up-to-date equipment. We turn out, we believe, more bathing suits and sweaters than any other mill of equal size. There are only a few large mills of similar nature in New England, but there are many small plants concentrating on one or another of our products. The influence of changes in demand for the product of knit-goods manufacturers and of changes in the methods of merchandising is show T n in the following representative statements : Changes in consumer demand and buying policies have been great during the last five years. Buying is all on a hand-to-mouth basis, and demand in hosiery lines is for fancy goods. This makes a very difficult problem. Another manufacturer states: We find a little better demand for novelty goods than in the past few years, but not enough demand in safe staples or semistaples to warrant run- ning more than a percentage of the machinery. A manufacturer of women's underwear states as follows : There has been a tremendous change in women's underwear toward extremely light weights, and to silks. The consequence from the knitting standpoint is that three years ago we took up rayon underwear for women, and to-day our rayon end of it is 55 per cent of our gross sales. There has developed, how- 61232°— 30 26 390 INDUSTRIAL STRUCTURE OF NEW ENGLAND ever, especially with manufactures going direct to the retailer, a particularly perplexing and difficult problem in the fact that the old method of advance fall and spring buying is now a thing of the past. It is almost impossible now for manufacturers to obtain retailers' adequate advance orders. Their buy- ing policy has gone to such an extreme that we have examples of many of the largest retailers in New England buying and replacing their stock in quanti- ties of two-twelfths of a dozen. This seems to us to be as acute a problem to overcome as anything we have to face in our industry. It comes down to a matter of barely covering overhead for six months of the year, and then such a tremendous in-season requirement of fall merchandise, covering a period of only about three months, that it is impossible for the manufacturer to give the degree of service that the retailer is demanding to-day. This is accompanied, of course, by the additional expense attendant to giving a degree of service, making a tremendous peak in production, and many other difficulties. Manufacturers of men's underwear are facing a similar situation, as indicated by the following statement : There has been a decided change in the consumer demand in our industry in the last 10 or 15 years. Ajjparently fewer men are wearing wool underwear, which is to the disadvantage of our particular branch of the knitting industry. The buying policy of most of our customers is also changed, and many of our largest and best customers now follow a more hand-to-mouth policy than formerly. The influence of these changes in buying practices upon the manu- facturers is summed up in the following statement by a prominent executive : The changes which have taken place in the consumer demand depend on the class of trade to which one is selling. We have sold principally to jobbers. They have in the past few years resorted to the hand-to-mouth policy of buying. I believe that this change has forced the manufacturers to seek new trade, and that in a great many cases manufacturers are going direct to what might be called the cooperative buying — large department stores and mail-order houses — omitting the small retail dealer. As we view this trade as outlined, they will anticipate as much as the jobber, and their requirements are as great as the jobber's ; so that to manufacturers who have been selling to jobbers I believe this class can be included in their trade without serious effect to the jobber, as I do not feel that the jobber could sell these large users. I will admit that there is a great deal of opposition on the part of the jobbers to manufacturers serving this trade. Following is a significant statement by another executive: The most notable change which has taken place in consumer demand and buying policy during the last five years is evident from the hand-to-mouth buying policy which has been adopted by the retailer. This brings about new problems to the manufacturer which compel him to utilize every means possible in order to avoid being loaded up with unsalable merchandise. The policy of the merchant formerly was to carry a reasonable stock and to place advance orders, but now he expects the manufacturer to carry the stock with- out any advance information as to what his customers' requirements may be. Ours being a style proposition, in addition to having to carry a large inventory \ve have great difficulty in deciding what this inventory should consist of. Formerly the advance orders gave us this information, but without it the situation is much more difficult. However, we aim to be alert to the style trend and this year we have so anticipated it that we have run our factory 100 per cent all the year, and on certain numbers are sold for the balance of the year. The effect of changed retailing practices upon manufacturing is indicated in the following discriminating analysis by another ex- ecutive : Under the modern efficiency methods of retailing, the retail stores, with the idea of securing a quick turnover and increased volume, demand of all departments thai to-day's sales must show an Increase over yesterday's, this week's over last week's, this month's over last month's, and this year's over last year's. This is accomplished hy forced sales advertised extensively. For TEXTILES 391 these sales the manufacturer is expected to furnish special merchandise, or at least merchandise at a special price. This is his contribution to the sale, and can only be made at a sacrifice of his own profits. The increased adver- tising cost is sometimes shifted to the consumer, but quite often even this is financed by contributions from the manufacturers or jobbers. It seems that the retailers have lost sight of the fact that if the manufacturers do not have profits we can not have prosperity. This special merchandise is bought in quantities which compare favorably with the quantities of regular mer- chandise bought a few years ago. The regular merchandise itself is pur- chased in very small amounts indeed. The manufacturer or jobber is thus forced to carry stock subject to the immediate order of the retailer. This method of doing business must necessarily increase the detail of the retail stores and consequently increase their expenses, if we are to judge results by the increased cost which we have found from our own experience with the small fill-in order business. Whereas five years ago retailers were content with a 50 per cent mark-up, none of them are now content with less than 60 per cent, and many demand a mark-up anywhere from 60 to 100 per cent. The manufacturers and job- bers have not been able to follow along with corresponding mark-ups, due to the decreased demand for knit underwear, and the consequent increase in competition among the manufacturers. In their case, then, the increased cost of small-order distribution has not yet been transferred. That in the near future it will be goes without saying. A tendency in this direction is already apparent in the unwillingness of many manufacturers to decrease underwear prices despite the marked decrease in the price of the raw cot- ton itself. While it is true that yarn prices and underwear prices in most cases have discounted the decrease in the price of raw cotton, there seems, nevertheless, to be an effort on the part of the manufacturers to resist any firrther decline until they are in a position to amply cover their costs. It is not only the policy of making small purchases which has increased the cost of distribution, but there has also arisen the necessity of having the salesmen call quite frequently, only to be put off with little or no business, time and time again. Compared to the procedure under the old advance- order method of purchasing, when the salesmen found it necessary to call only once a season, it is readily apparent that this method of frequent calls by the salesmen has added considerable expense to the distribution cost. It is nothing unusual for an underwear plant doing a business of $3,000,000, and having a stock varying from $400,000 to about $800,000, to receive orders which it can not fill from even these large stocks. The reason is plain. It no longer has advance orders, and if for any reason a particularly large demand comes for styles for which we did not have more than ordinary sales in the previous year, and which we have no way of anticipating, some cus- tomers are bound to be disappointed. WEARING APPAREL The importance of New England as a producer of wearing apparel is not fully appreciated. Although in this line the manufactures of this section comprise only 3.3 per cent of the total United States pro- duction of clothing, woven underwear, furnishings, shirts, hats, fur goods, and other articles of wearing apparel, yet the New England value of these products in 1925 was more than $182,000,000. These industries engaged over 40,000 persons and gave employment to more than 36,000 wage earners, who received nearly $37,000,000 in wages. ^ Nearly 900 establishments of varying sizes were engaged in these lines of manufacture, providing a market for nearly $96,000,000 worth of materials and adding over $90,000,000 to the New England revenue, as indicated by the value added by manufacturing. IMPORTANCE OF INDIVIDUAL ITEMS New England has national prominence in the manufacture of corsets, with 30.4 per cent of the national product in 1925; in fur- felt hats, with 38.5 per cent of the United States total; in suspenders. 392 INDUSTRIAL STRUCTURE OP NKW ENGLAND garters, and related items, with approximately 17 per cent; and in straw hats, with 15.7 per cent of the national output. Of m< clothing New England produced only 4 per cent, and of women's clothing less than 3 per cent of the national output; of shirts, about 6 per cent ; and of other men's furnishing goods, about 8 per cent. Of the items of principal importance in New England, the manu- facture of men's and boys' clothing, including suits, overcoats, and work clothing, leads, with a product valued in 1925 at approximately $43,800,000. Women's and children's clothing, including suits, dresses, aprons, and underwear, comes next, with a product valued at nearly $34,400,000. Fur-felt hats manufactured in New England were valued at $31,500,000, and corsets were valued at more than $23,400,000. Other items of substantial importance were shirts, with a value exceeding $12,000,000; millinery and lace goods, over $9,600,000; men's furnishing goods, nearly $8,400,000; and fur goods, $7,375,000. Other minor products of considerable importance in the aggregate were suspenders, garters, and related items, worth over $4,600,000; straw hats, worth $4,429,000; and cloth hats and caps, with a value exceeding $2,500,000. The importance of each of these items in the manufacturing activity of New England is shown in the following table. Manufacture of Wearing Apparel in New England, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Men's clothing: 1927 238 261 333 296 38 43 29 28 41 38 49 57 37 31 36 62 15 17 4 12 45 47 9,109 8,507 8,591 6,932 5,763 5,618 4,081 5, 093 3,710 3,064 2, 750 1,834 1,968 1,693 491 908 909 763 233 1,343 342 371 9,536 9,388 9,544 7,054 8,221 7,561 2,497 4,139 2,716 2,157 2,823 1,621 1,934 1,160 778 1,303 767 608 239 1,217 465 566 21, 827 22,447 23, 104 18, 741 20, 903 16, 758 8,716 11, 381 5,949 6,294 3,962 5,125 6,177 4,505 2,237 4,196 3,599 3,058 345 2,113 1,124 1,317 43,484 45, 795 44,381 34, 395 39, 121 31,500 19, 251 23, 431 11,461 12, 141 8,761 9,632 11,448 8,383 3,857 7,375 5,142 4,634 822 4,429 2,254 2, 514 21,657 1925. 21, 348 Women's clothing: 1927 21, 277 1925. 15, 654 Hats, fur felt: 1927 18, 218 1925 14, 743 Corsets and allied garments: 1927 10,536 1925 12,050 Shirts: 1927 5,512 1925 5,847 Millinery and lace goods: 1927 4,799 1925 4.687 Men's furnishings: 1927 5,271 1925 3,878 Fur goods: 1927 1,620 1925 3,179 Suspenders, garters, and other elastic woven goods: 1927 1,543 1925 1,576 Straw hats: 1927 477 1925 2,317 Hats and caps, cloth: 1927 1,130 1925 1,197 Total: 1927. 865 892 37,947 36, 126 40, 518 36, 772 97, 942 95,933 189, 983 182,229 92,041 1925.... 86, 440 TEXTILES 393 LOCALIZATION OF INDUSTRY Although these industries are of principal importance in Massa- chusetts and Connecticut, they are of considerable prominence in each of the New England States. The manufacture of men's and boys' clothing and of cloth hats and caps is localized to quite an extent in the region about Boston, largely because of the importance of that city as a market for these products. Numerous individual establish- ments, however, are scattered around New England in the small centers where there is a ready supply of labor. Women's garments, as well as a considerable amount of men's and boys' apparel and shirts, are manufactured to quite an extent in Connecticut, for which a market is found in New York City. Woonsocket, R. I., is a center of handkerchief manufacture. The centers for the manufacture of corsets are Bridgeport and New Haven, in Connecticut, and Worces- ter, in Massachusetts. The principal center for the manufacture of fur-felt hats is Danbury, Conn., while straw hats are made prin- cipally in Massachusetts. The importance of each State in the individual lines of manufac- ture is shown for 1925 and 1927 in the following table. Manufacture of Wearing Apparel in New England, by States, 1925 and 1927 MEN'S CLOTHING Estab- lish- ments Wage earners Thousands of dollars States Wages Cost of materials Value of products Value added by- manu- facture Connecticut: 1927 19 30 13 11 195 206 8 7 3 7 952 1,143 437 384 7,141 6,230 463 430 116 320 895 1,605 265 301 7,925 6,948 369 357 82 176 1,387 2,158 513 857 18,642 17, 625 1,107 1,252 178 555 3,404 5,400 1,015 1,458 36,648 33, 890 2,046 2,002 372 1,044 2,017 1925 3,242 Maine: 1927 503 1925 601 Massachusetts: 1927 18,005 1925 16, 265 New Hampshire: 1927. . 939 1925.. _ 751 Vermont: 1927 193 1925. 489 Total: 1927 1925 238 261 9,109 8,507 9,536 9,388 21, 827 22,447 43, 484 43, 795 21, 657 21,348 WOMEN'S CLOTHING Connecticut: 1927 48 49 277 233 4 5 4 4 5 2,404 2,067 6,022 4,435 118 107 47 69 254 2,223 1,696 7,207 5,076 85 70 30 40 174 3,737 2,746 19, 071 15, 534 226 169 70 44 249 8,192 6,108 35,649 27,297 396 315 144 110 565 4,455 1925 3,362 Massachusetts: 1927 16, 578 1925 : 11,764 New Hampshire: 1927 169 1925 146 Rhode Island: 1927 74 Maine: 1925 66 Vermont: 1925 316 Total: 1927 333 296 8,591 6,932 9,544 7,054 23,104 18, 741 44, 381 34, 395 21, 277 L 1925 15,654 394 INDUSTRIAL STRUCTURE OF NEW ENGLAND Manufacture of Wearing Apparel in New England, by States, 1925 and 1927— Continued HATS, FUR FELT Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Connecticut: 1927 34 38 4 5,548 5,495 215 7,999 7,561 222 20,099 16, 758 804 37,758 31,500 1,363 17, 659 14, 743 559 ]925 Massachusetts: 1927 Total: 1927 38 5,763 8,221 20,903 39, 121 18, 218 1 Excluding Maine. L Excluding Vermont. CORSETS Connecticut: 1927 __ 17 18 12 10 8 3,138 4,047 943 1,046 119 2,805 3,306 693 833 145 6,838 9,082 1,878 2,299 510 15, 199 18, 938 4,053 4,494 953 8,361 9,856 1925 Massachusetts: 1927 2,175 2,194 443 1925 ... Maine: 1925 Total:i 1927 29 28 4,081 5,093 3,497 4,139 8,716 11, 381 19, 251 23,431 10, 536 12,050 1925 SHIRTS Connecticut: 1927 19 16 8 9 10 13 4 1,823 1,332 602 536 1,059 1,196 226 1,393 935 398 378 802 845 123 3,008 2,950 853 1,143 2,078 2,200 9 5,728 5,735 1,647 1,977 3,937 4,429 148 2,720 2,784 794 1925 Maine: 1927 1925 834 Massachusetts: 1927 1,859 1925 2,229 Vermont: 1927._ 139 Totals 1927 1925 41 38 3,710 3,064 2,716 2,157 5,949 6,294 11, 461 12, 141 5,512 5,847 MILLINERY AND LACE GOODS Connecticut: 1927 6 11 33 46 10 459 1,086 1,445 748 846 534 902 1,362 718 927 506 3,195 2,313 1,930 1,143 1,475 6,275 4,494 3,537 2,793 969 1925 3,080 Massachusetts: 1927 2,180 1925 1,606 Rhode Island: 1927 1,650 Total: 1927 49 57 2,750 1,834 2,823 1,621 3,962 5,125 8,761 9,632 4,799 1925 l. .. 4,687 ; Including ElhQtfe Is-hmd. TEXTILES 395 Manufacture of Wearing Apparel in New England, by States, 1925 and 1927— Continued MEN'S FURNISHING GOODS Estab- lish- ments Wage earners f Thousands of dollars State and year / Wages Cost of materials Value of product Value added by manu- facture Connecticut: 1927 11 8 4 26 19 870 670 157 1,098 866 936 374 93 998 693 3,106 1,655 698 3,071 2,151 5,370 2,958 1,116 6,078 4,309 2,264 1925 1,303 Rhode Island: 1925 418 Massachusetts: 1927 3,007 1925 2,158 Total: 1927^ 37 31 1,968 1,693 1,934 1,160 6,177 4,505 11, 448 8,383 5,271 1925 .. 3,878 L Excluding Rhode Island. FUR GOODS Massachusetts: 1927._ 36 36 10 3 5 491 677 68 23 21 778 1,017 86 35 19 2,237 3,218 385 54 29 3,857 5,638 570 134 80 1,620 1925 2,421 185 Connecticut: 1925 Rhode Island: 1925 80 Vermont: 1925 51 Total: 1925 62 908 1,303 4,196 7,375 3,179 SUSPENDERS, GARTERS, ETC. Connecticut: 1927_ 7 7 8 10 286 154 623 609 279 114 488 494 1,577 946 2,022 2,112 2,123 1,327 3,019 3,306 547 1925 382 Massachusetts: 1927 997 1925 1,194 Total: 1927 15 17 909 763 767 608 3,599 3,058 5,142 4,634 1,543 1925 . 1,576 STRAW HATS Massachusetts: 1927 ._ 1925_ 233 1,343 239 1,217 345 2,113 822 4,429 477 2,317 HATS AND CAPS, CLOTH Connecticut: 1927. 9 9 36 38 83 70 259 301 117 94 347 471 368 261 756 1,055 634 468 1,620 2,046 265 1925 206 Massachusetts: 1927_ 864 1925_ 991 Total: 1927 45 47 342 371 465 566 1,124 1,317 2,254 2,514 1,130 1925 1, 197 396 INDUSTRIAL STRUCTURE OF NEW ENGLAND EXPERIENCES OF MEMBERS OF THE INDUSTRY Special information regarding manufacturing practice and the marketing of products during the past few years was obtained from 155 manufacturers of wearing apparel, with aggregate sales in 1925 of $63,352,000. These represented 35 per cent of the total New Eng- land production as reported by the United States Census, and nearly 40 per cent of the wage earners. Massachusetts was represented in this total with 93 replies; Connecticut, 40; Vermont, 7; Maine and New Hampshire, 6 each ; and Rhode Island, 3. The representation in the various lines of products was as follows : Men's and boys' clothing and shirts, 58 replies; women's and chil- dren's clothing, 55; fur-felt hats, 15; men's furnishing goods, 10; corsets, 9; straw hats, 8. Among this representative group of manufacturing establishments the reasons given most frequently for locating or continuing in New England were labor conditions, nearness to market for their prod- ucts, and transportation facilities. Another important factor has been the availability of raw material. Aside from these economic reasons many concerns have located their establishments in New England because of its being their home and native environment. Proximity to the New York market is of significance in the industries which are localized in Connecticut, particularly those making corsets, shirts, and felt hats ; while the Boston market has been an important factor in the location of the clothing industry in or near the metro- politan area. AGE OF ESTABLISHMENTS In the clothing industries the average period of operation of all reporting establishments was 20 years. Of 65 makers of men's and boys' clothing and shirts, two-thirds had been established within the preceding 25 years and 19 of these within the last 10 years, while 6 others were over 50 years old. Of 55 establishments making women's and children's clothing, three-fourths had been established within the preceding 25 years, of which 20 came into existence in the last decade, and only one was over 50 years old. In the men's clothing group established within the last 10 years, 12 concerns were makers of suits and overcoats, and 6 made shirts. The average period under present management among all these clothing replies was 14 years. Changes in management had taken place in the preceding 6 years among 14 per cent of the 123 concerns. Twelve manufacturers of men's clothing reported changes of man- agement within 5 years, and 14 others between 5 and 10 years; while only 11 of the women's apparel manufacturers had changed manage- ment in the last 10 years. It appears that the manufacture of women's apparel in New England is of more recent development than that of men's and boys' clothing, but changes in management in recent years have been more frequent among the men's group. Individual corset-manufacturing plants report periods of opera- tion ranging from 7 to 65 years, with an average of 33 years for the group reporting. The three largest companies reporting have been in operation 50 years or over. Three others had been established within tin* preceding 20 years, while one medium-sized concern doing a mail-order business had come into existence within the last 10 years. TEXTILES 397 Although one of the larger and older companies has had a recent change of management, the average number of years under present management for the reporting group is 20. The only change from the original use of plant was the addition of corset manufacturing to an underwear establishment in one instance. In the fur- felt hat industry, the average period of operation of reporting plants is 34 years, and 16 years under present management. One of the largest companies has been in business over 100 years, another concern 70 years, and two others 50 years, while 3 plants have been established within the last 10 years. Two establishments had changed management since 1921. For the manufacturers of straw hats the average period of operation was 36 years, and 24 years under present management. Only one concern had been estab- lished within 25 years and that was 15 years ago. Three had changed management within the preceding 10 years. SIZE OF ESTABLISHMENTS For the entire group of apparel manufacturers, numbering 155 concerns, the average of individual sales in 1925 was $408,700, and the average employment in that year was 91 persons per plant. In the men's and boys' clothing group, including shirts, the average for 56 companies was $377,000 and 73 wage earners per company. Nearly one-half of this number hatl individual sales between $100,000 and $500,000, and nearly one-third of them did a business of less than $100,000. There were 5 companies with individual sales exceed- ing $1,000,000 a year, and these with 6 others exceeding $500,000 accounted for 65 per cent of the total sales, while 12 companies, employing over 100 persons each, accounted for 67 per cent of the employees. In the women's apparel group the average size of business for 43 companies was $221,000 each, and 59 persons per plant. No concern reported sales exceeding $1,000,000. Fourteen companies having individual sales between $250,000 and $750,000 accounted for 60 per cent of the total of those reporting, while 20 companies with sales between $100,000 and $250,000 account for slightly over one-third. Only 6 manufacturers of women's clothing report employment of over 100 persons each, while 26 companies had from 25 to 100 em- ployees, and 16 employed under 25. The average size of company in the women's group is much smaller than in the men's group. The average size for 15 companies manufacturing fur-felt hats, with total sales of nearly $16,000,000, was $1,058,000 per establish- ment, and 180 employees. There were 7 large companies with annual sales exceeding $1,000,000, including 1 concern with over $2,000,000 and 1 over $3,000,000; 2 establishments between $500,000 and $1,000,- 000, 5 between $200,000 and $500,000, and 1 small establishment under $100,000. Seven large companies employed between 100 and 500 persons each, and 1 other employed more than 500. The concerns manufacturing straw hats are much smaller, the average for 7 companies being $386,500 in annual sales and 114 in number of employees. Three establishments had sales between $500,000 and $750,000 each ; 3 others had sales between $200,000 and $300,000, and 1 had a total of $50,000. None of these concerns em- ployed more than 200 persons. 398 INDUSTRIAL STRUCTURE OF NEW ENGLAND In corset manufacturing the average size of 9 companies with total sales of nearly $11,000,000 was $1,370,000, and the average number of employees was 397 per establishment. One company reported sales of several million dollars, and 3 others exceeded $1,000,000 each. The largest company employed nearly 1,500 workers, and 2 others over 500 persons each. Of 8 concerns making garters, suspenders, and handkerchiefs, the average size was $456,000, and the average number of employees was 66. Only 1 company had sales exceeding $1,000,000, and 2 others had sales of $500,000 each. Only one company employed over 100 persons. Few manufacturers in these apparel groups reported any branch plants. In the clothing group nine establishments reported branches, all located within New England. Two companies had branch plants in Maine and one other had a branch in New Hampshire. The other branches were in the State of the parent company. One Connecticut shirt manufacturer reported a branch plant in the same State. No branches were reported by manufacturers of corsets or hats. CHANGES IN CAPACITY OF PLANTS While increases in plant capacity since 1921 were indicated in numerous instances, the proportion of these increases to the total number of concerns was relatively small. Among the manufacturers of men's clothing 15 of the 65 replies indicated increases ranging from 25 to 100 per cent. These increases were mostly among the outerwear manufacturers, although one shirt manufacturer reported an increase of 175 per cent. Three manufacturers of outerwear reported decreases in their capacity. No significant changes were indicated among the women's clothing group. Two manufacturers of dresses and one of infants' wear and aprons reported increases of 100 per cent each; 4 other companies reported increases of 50 per cent each, while 2 companies reduced their capacity by 50 per cent. In the felt-hat group three plants reported increases of 50 per cent and one of 12^2 P er cent. One small company making hatter's fur reported an increase of 50 per cent. No increases were reported by corset manufacturers, except by one company doing a business of $500,000, which increased its capacity 25 per cent in 1925 by the addition of other garment manufacture. A maker of suspenders and garters doing a $500,000 business reported a 300 per cent increase, and a $100,000 company making handkerchiefs reported a 90 per cent addition. No increases are reported by the manufacturers of straw hats. RELATION OF OUTPUT TO MAXIMUM CAPACITY In the men's clothing group of 49 companies indicating their 1925 output, 27 reported operations from 75 to 100 per cent of maximum capacity, and 7 of these were operating at full capacity; 18 were operating at 50 to 75 per cent, and 4 concerns at less than one-half rapacity. The manufacturers of work clothing and shirts showed generally a lower output than the makers of suits and overcoats. Of 43 companies replying in the women's clothing group, 25 re- ported their output ranging from 75 to 100 per cent, and 5 of these were operating at full capacity. All the others were at 60 per cent Textiles 399 or above. In the corset group only one concern reported operations exceeding 80 per cent of capacity and the majority were between 50 and 70 per cent. Of the 15 manufacturers of fur-felt hats, all but 2 were operating at or close to full capacity, thus showing a very prosperous condition. One $1,000,000 company reported operations at 50 per cent of capacity, and a $200,000 company operations at 40 per cent. The manufacturers of hatter's furs, however, showed generally low activity. The largest company operated at only 35 per cent of capacity and 2 others at 50 per cent, while another reported two-thirds capacity and another 100 per cent. EMPLOYMENT CONDITIONS One of the difficult problems faced by manufacturers of wearing apparel arises from the high seasonal variation in employment that prevails generally in these industries. This is more pronounced in the manufacture of women's clothing than in men's wear. Between the months of maximum and minimum activity, as shown by the number of persons employed by all New England establishments, the census figures for 1925 show a variation of 20 per cent of the average number of employees for the year in the case of women's clothing, and of 11 per cent in the case of men's clothing. Many manufacturers have made efforts to reduce this seasonal variation through the development of supplementary products and the manufacture of staple garments during slack periods. Progress along this line is indicated by one-fifth of the establishments making special reports. In men's clothing the month of maximum employ- ment in 1925 was November, followed closely by September and March, while the month of minimum employment was January, followed closely by June. In women's clothing for that year the maximum employment was in the month of March, followed closely by April ; while the minimum employment was in January, followed closely by July. There is considerable variation in the felt-hat industry and pro- nounced seasonal variation in the straw-hat manufacture resulting from seasonal variation in the demand for their products. Some of the manufacturers of fur-felt hats meet the seasonal situation by making hat bodies in the rough, or manufacturing for stock during slack periods. In straw-hat manufacturing no supplementary prod- ucts seem to be possible. USE OF INCENTIVE METHODS OF WAGE PAYMENT The apparel industries make extensive use of piecework methods of payment of employees. Ninety-two per cent of the manufacturers of men's and of women's clothing reported the use of some incentive method of compensation, many establishments paying their entire working force in this way. For the entire group the average of the percentages stated by individual companies was 58. All but two of the shirt manufacturers reported at least half of the employees on some kind of piecework basis. Among corset manufacturers the proportion of workers affected by incentive methods of payment varied from 60 to 85 per cent, this high proportion probably being 400 INDUSTRIAL STRUCTURE OF NKVV ENGLAND partly in consequence of the large scale of employment that pre- vails in this group. Practically every concern making felt and straw hats reported a high proportion of their factory workers on a piecework basis, the average of percentages for individual firms being 75. IMPROVEMENTS EFFECTED The apparel industries as a whole have been quite actively engaged in improving their manufacturing practices. Reduction in accidents, better control of production, improved relations with employees, better organization and administration, cost-accounting methods, closer attention to maintenance of machinery and equipment, and inspection of products, have been the principal lines of improvement. Comments from individual concerns along these lines mentioned closer cooperation with workers, reduction in overhead costs, im- proved organization and more accurate determination of cost of products, and the avoidance of overstocking by balancing produc- tion capacity with demand. One manufacturer reports that development of purchasing sched- ules has resulted in a small amount of raw stock in proportion to sales, while another credits production control with a resulting reduc- tion in inventory of raw and finished materials. Another manufac- turer has put 95 per cent of his employees on a piecework basis and remarked that this has stimulated production and increased the em- ployees' earnings, and has lowered costs. Another states that produc- tion control has brought about the adjustment of different items of the inventory to correspond to the rate of turnover, so that a smaller inventory is necessary for the same volume of sales. A manufac- turer of suspenders and garters emphasizes the elimination of can- cellations and the standardization of products. SOURCES OF MATERIALS The more important raw materials in clothing manufacture — cot- ton goods, woolen goods, thread, and buttons — are purchased, in the majority of cases, within New England, while silk goods usually come from outside sources. Corset materials, consisting of cloth, steel, and elastic, are likewise purchased almost entirely within New England and come from New England sources. The raw materials used by the manufacturers of felt hats, consisting of hatters' fur, shellac, and dyes, are obtained, by the majority of the reporting com- panies, from sources outside of New England; but a portion of the natter's fur is prepared in near-by establishments, whose supplies of raw skins come from Australia, Italy, or other European countries. The straw-hat group obtain their straw braid and hat bodies usually from sources outside the United States. SALES TRENDS Examination of statements of individual clothing manufacturers in both the men's and women's group discloses a general increase in business from 1921 to 1928, with a slight falling off in sales of men's clothing from 1923 to 1925, but an increase in the case of women's TEXTILES 401 clothing for this latter period. Among the group whose trend of sales had been upward during this period the reason generally given was extension of sales territories and new or more aggressive selling methods, while a majority of the group which had decreasing sales attributed their downward trend principally to high labor costs. Forty manufacturers of men's and boys' clothing and shirts, with total sales of $15,000,000 in 1925, showed a sales increase from 1921 to 1925 amounting to 17 per cent — advancing 30 per cent in the first two years of this period but falling back 10 per cent in the later two years. Fifty-one establishments in this group, whose sales in 1925 totaled $19,500,000, showed a net falling off from 1923 to 1925 of 3 per cent. This decline occurred in 1924, when it amounted to 7 per cent, and was followed in the next year by an increase of 4% per cent. In the women's garment group 27 companies, giving continuous figures from 1921 to 1925, with total sales in the latter year of $5,900,000, showed an increase of 24 per cent over the 5-year period, the advance from 1921 to 1923 being 16 per cent and that from 1923 to 1925 being 6.7 per cent. Thirty-eight companies giving figures for the latter period, with total sales amounting to more than $8,500,000, showed an increase of 7 per cent in sales from 1923 to 1925. There was a slight falling off in 1924, followed by a full recovery in 1925. Among the manufacturers of men's and boys' clothing there were nine companies, including one with sales of $2,500,000 in 1925, which showed a continuous increase from 1921. A manufacturer of outer w T ear with a $500,000 business showed a substantial increase from 1921 to 1924, but a falling off in 1925. Another outer-wear manu- facturer doing over $3,000,000 worth of business showed a falling off in 1924 but recovered in 1925. A shirt manufacturer, doing nearly a $1,000,000 business, and several other clothing manufac- turers show regular increases from 1923 to 1925. Others fell off in 1924 but increased in 1925, one of the latter being a manufacturer of work clothing with sales of over $500,000. Decreases in 1925, compared with 1924, were shown by 15 companies. Only a few of these were shirt manufacturers, the latter generally showing sub- stantial increases. Within this group of men's and boys' clothing comparisons according to specific products are significant. Twenty- two manufacturers of suits and overcoats with 1925 sales totaling $12,870,000 show a falling off from 1923 of 5.3 per cent; 15 shirt manufacturers with 1925 sales of $3,550,000 show an increase from 1923 of 10.5 per cent; and 14 manufacturers of work clothing with 1925 sales of $3,085,000 show a decrease from 1923 of 4.7 per cent, but an increase from 1924 of 6.1 per cent. A manu- facturer of children's dresses doing a $400,000 business showed a steady and regular increase in sales since 1921, and a manufac- turer of women's dresses with sales of $600,000 shows a 30 per cent increase from 1923. Several medium-sized manufacturers of aprons and of infants' and children's wear selling their products both in New England and nationally, as well as several manufac- turers of children's muslin underwear, show substantial prosperity. Among the manufacturers of garters, suspenders, and handker- chiefs, seven companies with aggregate sales of $3,100,000 showed s 402 INDUSTRIAL STRUCTURE OF NEW ENGLAND an average increase from 1921 to 1923 of 6 per cent and a correspond- ing setback from 1923 to 1925. Five companies showed an increase in sales in the latter period, and 2, including a garter manufac- turer doing a $1,500,000 business, fell off; while 2 manufacturers of garters, each doing a $500,000 business, showed substantial in- creases, one of them more than doubling. A manufacturer of men's neckwear, with $200,000 in sales, also showed a steady growth. A manufacturer of handkerchiefs, doing a $100,000 business and selling his products to chain stores, doubled his production from 1921 to 1923 and more than doubled it again from the latter year to 1925. Of the manufacturers of corsets and brassieres, eight companies with sales of nearly $11,000,000 in 1925 showed a sharp falling off of nearly 20 per cent in aggregate sales from 1921 to 1923 and made a slight total increase from 1923 to 1925. Three small com- panies increased in the earlier period, but each of the larger ones had a pronounced drop. The largest one reporting made a sub- stantial advance in the earlier period through the addition of under- wear and other supplementary lines. A $500,000 company showed a steady increase in sales each year from 1921 to 1925. In the manufacture of fur-felt hats, 14 companies whose sales in 1925 were nearly $15,500,000 had increased 90 per cent above the total for 1921. There was a 50 per cent increase in the first two years, while sales in 1925 showed an increase of over 36 per cent above those in 1923. Each company showed increased sales in the earlier period, and all but two showed increases in the latter period, these two having relatively slight reductions. The reasons for this pro- nounced upward trend in sales of felt hats are given as the extension of selling areas and the improvement of selling organizations. Total sales of the seven manufacturers of straw hats, aggregating $2,700,000 in 1925, increased up to 1923, but show a pronounced de- crease since then, each of the seven showing a decided decline. The declining sales of straw hats are attributed to competition from other sections, especially from foreign concerns. One manufacturer of straw hats expressed the general opinion that local concerns can not compete with the prices of goods imported from Italy and other European countries. LOCATION OF MARKETS The markets for men's and women's clothing and shirts is mainly within New England, or in New York City. Of 60 replies from manufacturers of men's and boys' wear, all but 11 indicated that 50 per cent cr more of their output was sold in New England. Twenty-six of these said that they sold 90 per cent or more in New England, and 38 reported over 75 per cent. The trend of New England sales as indicated in the replies, was evenly divided be- tween increases and decreases. Nine manufacturers of suits and Overcoats arid 4 of shirts and work clothing mentioned the Middle West as their market; 3 manufacturers of suits and overcoats sell on the Pacific roast, and 2 in the Southern States. Three manufacturers of shirts and one manufacturer of work clothing report their market in the Southern States. Out of 17 manufacturers of women's and children's wear, 30 indi- cated the majority of their sales in New England, and one-half of TEXTILES 403 the replies stated 75 per cent or more to be New England sales. Eleven other companies report not over one-fourth of their sales in New England, and seven of these less than 10 per cent. Trends of New England sales were about evenly divided among the individual concerns as increasing and decreasing, while several said there was no change. The principal market for the corset manufacturers was indicated to be outside of New England. Only one company, with $300,000 in annual sales, selling 60 per cent of its products in New England, finds its principal market in this section ; all the others reported only from 2 to 15 per cent of their total sales in New England. The large companies have national distribution. One large manufacturer sells through New York City, and another large company markets its products mainly through retailers in the Southern States. A com- pany with sales of $200,000 markets 90 per cent of its products in the Middle Atlantic States and Ohio; four companies sell to retailers through New York and Chicago; another sells its product through a mail-order house in the Middle West. The principal market for fur-felt hats is New York City ; only a small proportion of sales is made in New England. The smallest company reporting, with sales under $100,000, markets its whole product in New England ; a $500,000 company reports 15 per cent of its sales in this section; and a $1,000,000 company sells 25 per cent locally. None of the other manufacturers sell over 10 per cent of their goods in New England. One company has its principal market in the Middle West and South and another in the South and Western States. Hat materials manufactured by New England concerns are generally sold direct to near-by hat manufacturers. The market for the straw hats manufactured in this section is well distributed, and is located mainly outside of New England. One company, however, doing a $600,000 business, reports all its sales in New England, and another of half this size sells 50 per cent in New England. The other concerns report from 5 to 20 per cent of their sales within New England. One company sells in the Middle West and another sells in New York City. Two concerns report national distribution. A $700,000 manufacturer sells his products in New England, New York, and the Pacific coast. A manufac- turer in eastern Massachusetts states: We sell about 5 per cent of our output in New England, but the bulk of it is sold in the Middle West, where we have some manufacturing competition, and where they have a big advantage over us, not only in cost of transportation and quicker delivery, but in the regulation of working hours, which are more conducive to cheap production than in this State. Direct exports appear to be of minor importance with the manu- facturers of apparel. This is particularly true of men's and women's clothing, in which the manufacturers report practically no exports. A corset manufacturing concern doing a $2,000,000 business ex- ports 30 per cent of its products, while another concern of half that size exports 15 per cent, and one with $300,000 sales reports exports of 7 per cent. A corset manufacturer doing several million dollars' worth of business reports that his exports amount to 6 per cent of the total. The proportion of exports has increased considerably among these corset manufacturers during the last few 404 INDUSTRIAL STRUCTURE OF NEW ENGLAND years, and fuller development of export trade is receiving special attention by some of them. A large manufacturer of felt hats reports exports of 2 per cent, and another small concern reports 1 per cent of total sales. A large manufacturer of straw hats exports 1 per cent, and another straw- hat manufacturer reports small shipments to Canada. A manu- facturer of athletic equipment also reports exports of 1 per cent. DISTRIBUTION CHANNELS In the marketing of men's and women's clothing, the prevailing channel of distribution is direct sales to the retailer. A majority of the manufacturers of men's and boys' clothing indicated this single channel, and only a few mentioned any other. Sales to wholesalers and direct to consumers were reported as supplementary channels in numerous cases, both of men's and of women's clothing. Three manufacturers of men's suits and overcoats and one manufacturer of women's underwear report selling solely through selling agents, and three other manufacturers of women's underwear report this channel as supplementary to others. All the reporting corset man- ufacturers sell their products direct to retailers, one of them market- ing its entire product to a mail-order house. Manufacturers of finished felt hats sell their product mainly direct to retailers, but two medium-sized manufacturers sell their product through sales agents. Hats in the rough are sold mainly to hat wholesalers, but three of these manufacturers sell their product direct to other hat producers. Straw hats are sold through commission houses or to wholesalers, although one concern sells its product direct to the retailer. USE OF BE AND S AND TRADE-MARKS Among manufacturers of men's and of women's clothing the use of a trade-mark or brand on the product is general, but not universal. Of 50 manufacturers of men's and boys' clothing who indicated their practice in this respect, 38 brand the majority of their products, and 22 of these use a trade-mark on their entire output. Only five of this group stated that none of their product is trade-marked. In the women's clothing group, of 27 concerns replying, 18 reported the use of a trade-mark on all or most of their products, while 9 stated that they use no trade-marks at all. Among the corset manu- facturers, trade-marks are reported as used in every case except one small company, and another medium-sized company which sells its product to a mail-order house. The finished product of felt-hat manufacturers is generally trade-marked, as well as the product of some concerns making hats in the rough. None of the straw-hat manufacturers indicated the use of trade-marks. USE OF ADVERTISING MEDIUMS The use of advertising mediums runs generally parallel to the practice in regard to trade-marks. It is influenced, of course, to a large extent, by the type of distribution channel through which the product of the manufacturer is marketed. TEXTILES 405 Of 50 manufacturers of men's and boys' wear who indicated their practice in this connection, 29 stated the use of advertising, while 21 reported no advertising. Part of the concerns employed national advertising, but the majority reported the use of local mediums. The most common single advertising medium reported in this group is direct mail, although newspapers, magazines, and dealer helps were mentioned in a number of replies. In the women's clothing group, 20 companies stated that they use advertising, while 18 reported no advertising, and 17 others made no reply. A variety of mediums are used in which no single medium stands out prominently. The corset manufacturers generally employ national advertising, in which trade journals are the principal medium. One large company, how- ever, depends mainly upon newspapers, and one of the largest uses magazines with national circulation, supplemented by trade journals and dealer helps. Of the felt-hat manufacturers, 8 companies re- ported the use of advertising, while 4 stated that they do no adver- tising, and 4 others made no reply. One of the larger companies depends mainly upon newspaper advertising, but trade journals and magazines are the principal mediums used by the others. Recognition of the importance of sales and marketing is evidenced among this group of wearing-apparel manufacturers by the large number of concerns which stated that in their plans for future business they are giving emphasis to new and better methods of merchandising, along with special attention to management. 61232°— 30 27 LEATHER AND LEATHER GOODS The New England industries connected with leather making and the turning out of footwear and other finished leather products are surpassed only by the metal industries and textile manufacture as a source of revenue to the region. Thus the leather group is third in importance to the people of New England. It provided not quite 8 per cent of the income derived in 1925 from all New England manufactures, while textiles provided about 27 per cent and the metals group nearly 32 per cent. In its share of the national leather industry, however, this activity holds a considerably more prominent position than that indicated by its relation to other industries of New England. The factories of this section provided about 30 per cent of the national revenue from all leather manufactures and gave employment to nearly one-third of the wage earners employed in the country's leather industries. Approximately 100,000 wage earners in New England obtain their livelihoods from this source, and more than $113,000,000 was paid to them by these industries in 1927. There were 1,235 factories shar- ing in this activity, the gross value of the output of which in that year exceeded $500,000,000. The net revenue, as indicated by the value added by manufacture, outside the outlay for materials, was in excess of $217,000,000. The industry provided a market for materials used in manufacture (including fuel, power, and supplies) exceeding $209,000,000. LOCALIZATION OF PRODUCTION The general localization of the New England leather industries is indicated in the following table. It is observed that their activi- ties are confined, in the main, to three States. Massachusetts repre- sents 79 per cent of the New England total, while New Hampshire contributed 11 per cent and Maine 9 per cent. In the other three States — Connecticut, Rhode Island, and Vermont — the leather indus- tries are of slight importance. Importance of All Leather Industries in Individual States of New England, 1925 and 1927 Estab- lishments Persons engaged Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by man- ufacture Massachu 1,819 2, 575 1914 2 2,357 United States: 1927 11, 080 1925 12, 943 1 Not including Connecticut, 7 establishments, Maine 1, New Hampshire 1. 2 Not including Connecticut, 3 establishments, Maine 1, New Hampshire 1. 442 INDUSTRIAL STRITOTUEB OF NKW KNULAND Manufacture of Trunks, Suitcases, and Bags in New England States, L025 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manufac- ture Massachusetts: 1927 24 28 25 13 495 475 418 578 377 266 10, 345 10, 348 477 656 224 131 13, 085 13, 226 1,100 1,476 650 396 29, 128 31, 382 2,333 2,977 1,138 721 59, 959 61,224 1,232 1925 1,501 1914 488 1904 325 United States: 1927 30,830 1925 29,842 These lines have experienced the general changes which have affected the markets for leather products, in which the use of ma- terials other than leather has had a pronounced influence. The market for leather belting has been greatly curtailed by the wide- spread installation of electric motors in manufacturing plants, which has done away with the use of belts in the transmission of power. The use of woven belting has also cut heavily into the demand for leather belting. The market for harness, which was formerly an important New England product, has been decimated in consequence of the widespread replacement of the horse by the automobile and the tractor. RUBBER MANUFACTURES The rubber industries of the United States had their birth and early development in New England. Despite the expansion in the tire industry in other sections nearer the centers of automobile manufacture, New England continues to make a very substantial con- tribution to the national production of rubber articles. New England manufacturers at the present time supply the major portion of the Nation's rubber footwear, and a large part of the rubber clothing, belting, as well as hose, and rubber articles used in the druggist trade. The industry as a whole in New England gives employment to nearly 30,000 wage earners, and contributes to the revenue of these States nearly $100,000,000 annually, as shown by the value added by manufacture. As a consumer of raw materials, including fuel, power, and supplies used in manufacture, this industry provided a market amounting in 1927 to more than $100,000,000. Altogether there are upward of 100 New England establishments engaged in the manufacture of rubber products. Of this number Massachusetts in 1927 had 74 manufacturing plants; Connecticut followed with 23, and Rhode Island with 11. (See fig. 42.) TYPES OF PRODUCTS The rubber industries include three distinct types of products. From a national standpoint the most important of these in New England is the manufacture of rubber footwear. New England contributed in 1925 more than two-thirds of the income of the entire country from the manufacture of rubber boots and shoes. In this branch of the industry there were 10 Massachusetts establishments whose contribution to the State's manufacturing revenue in 1927 amounted to nearly $37,500,000. There were also 4 establishments in Connecticut and 4 in Rhode Island in this line for which no produc- tion figures are available. In the manufacture of other rubber goods, exclusive of automobile tires, there were all together 84 New England establishments. Of this number 62 were in Massachusetts, 15 in Connecticut, and 7 in Rhode Island. Separate New England totals for rubber goods can not be given because the data for Massachusetts include rubber goods and tires together. In Connecticut there were 15 establish- ments making miscellaneous rubber goods exclusive of tires, whose activities contributed $18,500,000 to the manufacturing revenue of the State, and in Rhode Island there were 7 establishments in this class which contributed $9,600,000 to the State's manufacturing revenue. In the manufacture of rubber tires and inner tubes there were six New England establishments in 1927. Four of these were located in Connecticut and two were in Massachusetts. The Connecticut 443 444 INDUSTRIAL STRUCTURE OF NEW ENGLAND production in that year contributed upward of $15,000,000 to the State's manufacturing revenue. The principal centers of tire manu- facture are Cambridge, Hartford, and Norwalk. LOCATION OF ESTABLISHMENTS MAKING RUBBER PRODUCTS NEW ENGLAND STATES 1927 DOTS SHOW HUMOtLR. IN EACH COUNTY <£& c^ Figure 42 Census figures for the different classes of rubber manufacture in the New England States, as I'm as they are available, are given for L927and 1025 in the following: table. RXIBBKi: MAN CTFACTUBES 445 Rubber Manufactures in New England States, by Classes of Products, 1927 and 1925 Estab- lish- ments Wage earners Thousands of dollars Product and State Wages Cost of materials Value of products Value added by manu- facture MASSACHUSETTS Tires and inner tubes and rubber goods, q. e. c: 1927 64 52 10 10 10, 364 10, 740 12, 081 11,389 13, 298 13,904 15,471 13, 525 56, 716 61,611 18, 957 18, 794 97, 718 108, 595 56, 440 53, 626 41,002 1925 46, 983 37, 483 34, 832 Rubber boots and shoes: 1927 1925 Total: 1927 74 62 4 5 15 15 4 7 5 4 22, 445 22, 129 1, 505 28, 769 27, 430 2, 185 75, 673 80, 406 10, 166 154, 158 162, 221 15, 091 78, 485 81,814 1925 CONNECTICUT Tires and inner tubes: 1927 4,925 1925 Rubber goods, n. e. c.: 1927.. 2,914 2,496 3,532 2,979 9,906 8,691 18, 500 15, 296 8,594 6,604 1925 Rubber boots and shoes: 1925 RHODE ISLAND Rubber goods, n. e. c: 1927 2,044 2,130 1,907 2,979 4,769 8,691 9,606 15, 296 4,837 1925. , 6,604 Rubber boots and shoes: 1925. ___ ... ... 1 Note. — The abbreviation n. e. c. means " not elsewhere classified." TRENDS IN NEW ENGLAND Comparison of available figures indicates that in the manufacture of rubber boots and shoes and of rubber goods other than tires New England has fully held its own since 1925. In rubber boots and shoes in Massachusetts there w 7 as an increase in manufacturing revenue in 1927 of $2,650,000, and a substantial increase in employment, although there was no change in the number of plants. In the mak- ing of miscellaneous rubber goods Connecticut shows no change in the number of establishments, but a substantial increase amounting to nearly $2,000,000 in manufacturing revenue. In Rhode Island there was a reduction of two in the number of rubber-goods establishments, accompanied by considerable falling off in revenue. Comparison bf figures for 1925 with those for 1914 indicates that in the manufacture of rubber boots and shoes the increase in New England during this 11 -year interval was substantially greater than in other sections. New 7 England manufacturing revenue in 1925 was nearly 300 per cent greater than that in 1914. For the country as a whole the increase was but slightly over 150 per cent. New England appears to have made very substantial advances also in the manufacture of rubber goods such as druggists 5 goods, rubber brushes, rubber clothing, belting, and hose. 446 INDUSTBIAL STBUCTITEE OF NKW ENGLAND MANUFACTURING CONDITIONS Replies from a representative number of New England manu- facturers indicate that there has been considerable change in the type of products manufactured. For example, one manufacturer stated that he had discontinued the production of rubber clothing in favor of rubber footwear. Another, who formerly made footwear as a side line, now has this as a principal product. In another case a concern which made rubber boots and shoes exclusively has turned principally to specialties, such as rubber heels and soles. Several other concerns report the changing from rubber sundries and cloth- ing to footwear. There are a number of branch plants of large companies which have in recent years assumed control of New England establishments already in operation. Some of these companies have their head- quarters outside New England, but they follow the policy of con- tinuing to operate these establishments as an important part of their manufacturing activities. Within the rubber industries it is signifi- cant that there has been extensive development of piecework and other incentive methods of wage payment. Efforts to overcome seasonal variations in employment were re- ported in numerous cases by adapting the product or adding new products to appeal to a broader market. Several concerns reported exhaustive studies of market conditions in order to balance their production with periods of demand for rubber goods. Substantial advances appear to have been made in this industry in the develop- ment of market research. The majority of sales reported in this line were made outside New England, and many concerns cater to a nation-wide market. Raw materials reported by most of the concerns consist of rubber, various fabrics, and chemicals. These were said to be purchased, in the ma- jority of cases, from sources outside New England. PAPER AND PAPER PRODUCTS The making of wood pulp, paper, and paper products is among the leading industrial activities of New England, ranking sixth in im- portance as a source of revenue and fourth in the gross value of its output. The paper industries are of particular importance to this section because their raw material comes in large measure from the native resources of New England; and they are of national impor- tance because of their large contribution to the country's paper re- quirements. PRODUCING REGIONS There are three regions in the New England States where paper manufacture is an important industry. The most extensive one of these is in the northern part, adjacent to the supplies of pulp wood from the forests of northern Maine, New Hampshire, and Vermont. In Maine most of the paper mills are along the Kennebec, Penobscot, and St. John Rivers. Large paper mills are located at Millinocket, Orono, Old Town, and Brewer, in the Penobscot Valley, also in Waterville and Rumforcl, and in Madawaska on the St. John River. There are several other Maine towns where paper making is im- portant. Berlin, in northern New Hampshire, is the great paper- producing center of that State, and there are mills of lesser size in other parts of New Hampshire's forested area. These northern New England mills, for the most part, manufacture their pulp direct from the wood produced in their locality. The second important paper-producing section is in the Connecticut River Valley of Massachusetts, with Holyoke as its center. This is the principal section of the country in the manufacture of high- grade bond and other rag papers, and Holyoke is known far and wide as the " paper city. 55 In the Thames River Valley of eastern Connecticut there is an area north of New London, centering in Montville, where paper manufacture has long been an important industry. In this region most of the raw material is shipped in in the form of wood pulp and other material for box boards. Besides these principal paper areas of New England there are numerous cities and villages with establishments which make various products from purchased pulp and paper materials. The greatest number of these establishments are engaged in making boxes and other containers, but a considerable number of factories make a wide variety of commercial paper products. In the location of paper factories in New England the big factors are (a) a supply of raw materials, (&) abundant power, and (c) large quantities of water for the manufacturing processes. These factors have a happy combination in this section, especially in north- ern New England, with near-by supplies of pulpwood from its forests, clear water, and a combination of water power and streams for floating the pulpwood from the forests to the mill. The great paper mills are located where this combination is present, with trans- 447 448 INDUSTRIAL STRUCTURE OF NEW ENGLAND portation for their pulpwood provided by the forest streams, large supplies of water for processing, and water power to meet the larger requirements for driving machinery. The paper mills require also a considerable tonnage of coal to provide heat for drying processes, LOCATION Or PAPER MILLS NEW ENGLAND STATES 1927 DOTS SHOW NUMBER IN EACH COUNTY <££> Q^ Figure 43 and, in some cases, to supplement an inadequate supply of watv power. (See fig. 43.) In converting paper and making paper products the factors < power and of labor are both important. Development of the;, secondary paper industries in New England has been fostered to PAPER AND PAPEB PRODUCTS 449 considerable extent by the near-by markets for their products, afforded by other industries in this section. This applies particu- larly to box boards and to boxes and other containers made from paper and pulp. The printing and publishing industry in New England and other near-by centers provides a substantial market for printing paper and book paper. TYPES OF MANUFACTURE The paper industries are classed here as of two distinct types of manufacture. The first has to do with the manufacture of paper from wood pulp, rags, or other raw materials in paper mills, while a second class is concerned with the further manufacture or finishing of paper outside the mills where it is made. Because of the fact that this second class of manufactures uses the products of the first class as raw material, there is considerable duplication in the figures for total value of product and cost of materials. The value added by manufacture is, therefore, a much more accurate indication of the importance of the second group. There is also considerable over- lapping in the primary manufacture of paper and the making of paper products, because many mills, especially the larger ones, make finished products, such as bags, boxes, cartons, and other articles ready for consumption, in addition to pulp and paper. In the primary manufacture of paper and wood pulp from wood and other raw materials there has been considerable reduction in output and activity in the last few years, as shown by the compara- tive census figures for 1927 and 1925. Paper boxes and other fiber containers, however, showed little change in the 2-year period. Factories making miscellaneous paper goods, envelopes, and boxes, on the other hand, increased materially in the value of their output and in the manufacturing revenue, as shown in the value added by manufacture. The approximate importance of the principal classes of paper manufacture in New England, as far as can be shown by available census data for 1927 and 1925, is presented in the next table. These figures are not complete because of the omission of various establishments in the individual items ; hence in making com- parisons among the different items and years account should be taken of the omissions mentioned in the footnotes. Principal Paper Industries in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by- manu- facture Paper and wood pulp: 1927 i 175 199 191 198 25, 626 33, 136 8,302 8,364 33, 883 42, 920 8,079 7,917 136, 194 151, 848 18, 412 15, 364 229, 172 250, 665 36, 105 33, 251 92, 979 1925 2.. 98, 817 Boxes, paper, and other fiber: 1927 3 -_ 17, 693 1925 ^ 17,888 1 Excluding Rhode Island. 2 Exclusive of 1 establishment in Rhode Island. 3 Excluding Vermont. 4 Exclusive of 3 establishments in Vermont. 450 INDUSTRIAL STRUCTURE OF NEW ENGLAND Principal Paper. Industries in New England States, 1925 and 1927 — Contd. Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Miscellaneous paper goods: 1927 «... 74 69 17 16 4 4 2,644 2,487 2,228 2,027 203 166 3,118 2,915 2,490 2,220 209 154 14, 062 12, 393 7,869 6,687 1,629 851 23, 155 20, 839 13, 876 11, 924 2,222 1,230 9,093 8,445 6,007 1925 6 Envelopes: 1927 7 1925 5,237 594 Bags, not made in paper mills: 1927 8 1925 9 379 Total: 1927 461 485 39, 003 46, 180 47, 780 56, 126 178, 165 187, 143 304, 531 317, 909 126, 366 1925 10 . . 130, 766 5 Excluding New Hampshire and Maine. 6 Exclusive of 3 establishments in New Hampshire and 1 in Maine. 7 Massachusetts only. 8 Excludes all New England States but Massachusetts. 9 Exclusive of 1 establishment in Connecticut and 1 in Maine. io Other items not included for 1925 are (a) labels and tags: Massachusetts 6, Rhode Island 3, New Hamp- shire 1; (6) card cutting: Massachusetts 3, Rhode Island 2; (c) cardboard: Massachusetts 2, Rhode Island 1. PRIMARY PAPER MANUFACTURE Approximately two-thirds of the total activity in the New Eng- land paper industries is represented by paper mills engaged in the primary manufacture of paper from wood pulp, rags, and minor materials. In New England, exclusive of Rhode Island, there were 175 establishments of this sort in 1927, whose product had a value exceeding $229,000,000. Their contribution to the revenue of the region, as shown in the value added by manufacture, exclusive of outlay for materials, amounted to nearly $93,000,000. They paid nearly $34,000,000 in wages to 25,626 wage earners and provided a market for materials amounting to more than $136,000,000. The five States of New England produced in 1925 more than one-fourth of the value of the national output of paper and wood pulp, with 27 per cent of the national value added by these manufacturers and a similar proportion of workers and wages. A very considerable reduction in the manufacture of paper and wood pulp is observed from 1925 to 1927. This reduction was most pronounced in Maine, so that in the latter year the output and the revenue of this State was surpassed by those of Massachusetts. In the latter State, as a matter of fact, there was an increase in the value of the product and a substantial growth in revenue, as a conse- quence of a material reduction in the outlay for materials. In Connecticut also the industry shows a slight increase in revenue, although there was a considerable reduction in value of product. Some paper mills market their entire output as paper, while others sell the pulp, and still others produce and sell both paper and pulp. Further-more, some companies convert their own product, while other manufacturers purcnase all their raw material from the paper mill- and act only as converters. In the present discussion, PAPER AND PAPEB PRODUCTS 451 therefore, it is to be borne in mind that the manufactures in the primary group include not only those which sell pulp and paper but some which act also as converters in the manufacture of secondary paper products. Approximately 70 per cent of the entire wood-pulp production of the United States is consumed in the establishments where the pulp is made, by manufacturing it into products for final consumption. To the national total in 1925 Maine contributed 11.3 per cent of the value added by all primary paper manufacture and Massa- chusetts contributed 9.8 per cent. In that year Maine produced 25 per cent of the total United States tonnage of ground, soda, and sulphite pulp, amounting to 875,600 tons. Ground pulp accounted for more than half of this — 55 per cent — while sulphite fiber com- prised 33 and soda fiber 12 per cent. Maine contributed more than 30 per cent of the value of the domestic production of newsprint and, in addition, large quantities of kraft and book paper, paper bags, and paper board, besides fine paper from chemical wood fiber. Newsprint, with a volume of 469,900 tons and a value of $32,859,000, represented 34 per cent of the total value of paper production in Maine. Substantial quantities of wood pulp and paper are pro- duced also in the neighboring States of New Hampshire and Ver- mont, but the separate values are not given. Primary Manufacture of Paper and Wood Pulp in New England States, 1925 and 1927 Number of estab- lish- ments Total persons engaged Wage earners Thousands of dollars State and year Wages and salaries Wages Cost of materials Value of products Value added by manufac- ture Maine: 1927 ... 25 38 80 84 24 25 32 35 14 17 (0 13, 023 0) 14, 323 0) 5,363 0) 2,479 0) 1,523 8,132 11, 833 12, 127 12, 915 2,487 4,793 1,898 2,208 982 1,387 (0 19, 722 0) 20, 732 0) 7,302 0) 3,752 0) 2,143 11, 122 15, 871 15, 608 16, 434 3,204 5,902 2, 753 2,909 1,196 1,814 53, 145 54, 203 50, 383 54,854 17, 670 24, 996 9,228 11,385 5,767 6,410 88, 595 95, 571 91,095 90, 127 24, 616 37, 061 16, 154 18, 161 8,712 9,745 35, 450 1925 41, 368 Massachusetts: 1927 40, 712 1925 35, 273 New Hampshire: 1927 6,946 1925 12, 065 Connecticut: 1927 6,926 1925 6,776 Vermont: 1927 1925-. 2,945 3,335 Total: 1927 2 1925 3 1914 175 199 221 227 710 763 26. 1 0) 36, 721 25, 626 33, 136 30, 501 24, 831 98, 566 123, 842 26.8 0) 53, 677 33, 883 42, 920 18, 768 12, 416 130, 475 160, 146 26.8 136, 194 151, 848 71, 618 42, 421 57A 786 605, 860 25.1 229, 172 250, 665 111,986 72, 763 919, 891 971, 882 25.8 92, 979 98, 817 40, 368 1904 109, 141 135, 929 27.0 30, 342 United States: 1927 . 134, 093 196, 461 27.3 347, 106 1925... 366, 022 New England as per cent of United States in 1925 27.0 1 Not compiled. 2 Not including Rhode Island. 3 Exclusive of 1 establishment in Rhode Island. 452 INDUSTRIAL STRUCTURE OF NKW ENGLAND In the production of fine rag paper Massachusetts is the leading State, with 58 per cent of the national value of all fine rag pa pen- in 1925. In full rag paper its lead is particularly noticeable, with 89 per cent of the national total; for paper in which rag is the major material Massachusetts produced 75 per cent, and in papers with a minor rag content, 33 per cent of the value for the United States. This State produced also 37 per cent of the national value of all cover paper, and substantial quantities of boards, tissue, and miscellaneous paper products. Massacusetts and New Hampshire to- gether produced more than 15 per cent of the fine chemical wood paper, including sulphite bond, of the entire United States output. In Connecticut the principal product of paper mills is boards, which in 1925 amounted to a volume of upward of 90,000 tons and a value of $6,679,000. The trend of primary paper manufacture over a 25-year period, as indicated by the number of wage earners employed in all New England mills, shows that in 1925 there were 2,600 more workers than in 1914 and 8,300 more than in 1904. Total wages paid in 1925 were nearly 130 per cent greater than those paid in 1914. The value of the product and the income derived from manufacturing show corresponding increases. The expansion in New England from 1914 to 1925 was less than that for the country as a whole. How- ever, the increase in New England amounted to 145 per cent, while for the whole United States there was an increase of 207 per cent in this 11-year period. The national production of paper shows a rapid and continuous increase during the last quarter of a century, and now exceeds 10,000,000 tons a year. At present the principal item, in point of volume, is paper boards, the volume of which has nearly trebled since 1914. The tonnage of newsprint production amounts to con- siderably less than one-half that of paper boards. This has shown little tendency to increase in recent years. Production of other kinds of paper has grown steadily. Wrapping paper and book paper are now produced in approximately equal volume and the volume of each is not far below that of newsprint. The following table shows the total domestic production of the principal kinds of paper from 1889 to 1927, inclusive. United States Paper Production by Kinds, 1899-1927 [Thousands of short tons] Year Total Boards News- print Wrap- ping Book Fine All other 1927 10,003 10,000 9,182 8, 029 7,018 5, 356 7, 335 6,190 6, 052 5, 920 5, 270 4,217 3, 107 2, 166 3,774 3,650 3,281 2,793 2, 156 1, 605 2,313 1,050 1,927 1,805 1,202 hs:< wn 394 1,520 1,686 1,647 1, 521 1,448 1,226 1,512 1,374 1,260 1,359 1,321 1, 170 913 509 1,525 1,450 1,298 1,151 1,048 782 1,044 870 891 844 882 763 644 535 1,329 1,411 1,368 1,242 982 726 1,104 915 849 892 935 695 516 323 509 500 474 377 361 242 389 344 368 288 248 198 147 118 1,346 \'.)2C> 1,303 1,115 946 1,023 L923 - 1922 1921 1920 - 714 972 1919 738 1918 756 1917 731 1914 593 1909 502 1904 3,107 233 PAPEB AND PAPEB PRODUCTS 453 The importation of newsprint has undergone a steady and rapid increase in recent years, as is shown by the succeeding table. The bulk of these imports comes from Canada, and the greater part of Canadian production of newsprint is accounted for by the importa- tions into the United States. Newsprint Production in United States and Canada, and Imports and Exports, 1018-1928 [Thousands of short tons] Calendar year Domestic production Total imports Total exports Imports from Canada Total Canadian production 1928 1,415 1,486 1,678 1,530 1,481 1,485 1,448 1,225 1,512 1,375 1,260 2,157 1,987 1,851 1,448 1,357 1,309 1,029 793 730 628 596 11 12 19 23 17 16 26 17 46 110 97 1,926 1,776 1,657 1,295 1,197 1,108 896 657 679 624 581 2,381 1927 2,087 1926 1,882 1925 1,522 1924 1,353 1923.. : 1,266 1922 1,082 1921 808 1920 875 1919 803 1918 735 PULPWOOD AND WOOD PULP PULP WOOD CONSUMPTION Depletion of native sources of pulpwood in recent years has en- couraged the bringing in of increasing quantities of wood and pulp from Canada. Some of the large paper companies have transf erred a considerable portion of their activities to the Canadian forests. Increasing quantities of wood pulp are being imported from Canada and Newfoundland and from the countries of northern Europe. Con- sumption of pulpwood in New England, in the past five years, has ranged from 1,600,000 to 1,800,000 cords annually, representing be- tween one-third and one-fourth of the total United States consump- tion. In New England it reached its maximum in 1920. The bulk of the pulpwood consumed by New England mills is spruce, this variety comprising 64 per cent of the total in 1925. Minor amounts are contributed from poplar, balsam fir, and hemlock. The figures of consumption of domestic and imported pulpwood, for each of the producing States of New England in 1925, are shown in the next table. Imports of pulpwood into the entire United States in the last few years have ranged from 1,280,000 to 1,500,000 cords annually, with a total value of $13,000,000 to $15,000,000. Production of wood pulp in New England, in the last few years, has varied from 1,125,000 to 1,276,000 tons annually. 61232°— 30- -30 454 INMHTSTKIAL STRUCTURE OF NEW ENGLAND Pulpwood Consumption and Wood Pulp Production by States i ok Specified Years, 1899 to 192G [All quantities in thousands] United States New Eng- land i Maine New Hamp- shire Massachu- setts Vermont Year Pulp- wood con- sumed Wood pulp pro- duced Pulp- wood con- sumed Wood pulp pro- duced Pulp- wood con- sumed Wood pulp pro- duced Pulp- wood con- sumed Wood pulp pro- duced Pulp- wood con- sumed Wood pulp pro- duced Pulp- wood con- sumed Wood pulp pro- duced 1926 Cords 6,766 6,094 5,768 5,873 5,549 4,557 6,114 5,478 5,251 5,480 5,229 4,471 4,002 3,051 1,986 Tons 4,395 3,962 3,723 3,789 3,522 2,876 3,822 3,518 3,314 3,510 3,435 2,893 2,491 1,922 1,180 Cords 1,833 1,713 1,600 1,720 1,648 1,345 1,966 1,820 1,726 1,892 1,786 1,323 1,371 1,087 637 Tons 1,276 1,215 1,123 1,191 1,125 927 1,315 1,268 1,218 1,292 1,286 ""962" 720 442 Cords 1,298 1,240 1,234 1,274 1,239 1,005 1,389 1,280 1,235 1,309 1,199 941 904 674 342 Tons 946 918 895 901 863 710 943 917 873 899 852 """604" 457 232 Cords 431 370 269 311 302 258 404 376 345 417 471 382 350 291 197 Tons 249 217 152 188 179 153 240 232 230 267 341 Cords 55 54 48 47 43 35 56 52 46 56 28 Tons 35 33 30 31 28 22 35 33 31 31 19 Cords 49 49 49 88 64 47 117 112 100 110 88 Tons 46 1925 47 1924 46 1923 71 1922 55 1921 42 1920 97 1919 86 1918 84 1917 95 1916 74 1914 1909 213 174 120 46 47 39 26 28 25 71 75 59 59 1904 61 1899 65 1 Four States. Imports of Pulpwood into the United States, 1917-1928 Year Total quantity Total value Year Total quantity Total value 1928 - Cords 1, 546, 338 1, 596, 787 1, 383, 619 1, 483, 231 1, 279, 975 1, 347, 927 $16, 157, 295 16, 484, 345 14, 176, 256 15, 129, 562 13, 107, 647 13, 405, 927 1922 Cords 1, 044, 816 1, 081, 634 1, 241, 444 1, 047, 299 1, 370, 027 1, 031, 934 $11, 002, 636 1927 1921 15, 387, 355 1926 1920 16, 902, 939 1925 1919 10, 458, 753 1924 1918 13, 362, 566 1923 1917 8, 563, 458 Pulpwood Consumption of Individual States in 1925 [Thousands of cords] Num- ber of estab- lish- ments Total quan- tity Cost (thou- sands of dollars) f. 0. b. mill Spruce Hemlock Poplar Balsam fir State Do- mes- tic Im- ported Do- mes- tic Im- ported Do- mes- tic Im- ported Do- mes- tic Im- ported All other Maine 29 9 3 6 1,240 370 54 49 22, 963 7,962 1,247 897 808 233 37 35 111 117 12 7 22 1 19 120 46 52 5 32 31 New Hampshire. Massachusetts 14 5 1 Vermont 6 Total United States... 47 234 1,713 6,094 33,069 94, 340 1,113 2,253 247 818 23 1,103 19 22 125 207 47 196 63 215 32 53 45 334 WOOD PULP PRODUCTION The volume of wood pulp produced in New England, with the total value and the average value per ton, is presented in the following table. This shows the overshadowing importance of Maine, which PAPER AND PAPER PRODUCTS 455 produced more than 75 per cent of the New England total, while New Hampshire produced 18 per cent. The total production of the four contributing States in 1925 amounted to 1,214,390 tons, with a value of $61,393,590, representing upward of 30 per cent of the total for the United States. Production axd Value of Wood Pulp by Individual States in 1925 State Quantity in tons Value Total Average per ton Maine 917, 632 217, 489 32, 672 46, 597 $42, 035, 170 15, 408, 304 2, 322, 163 1, 627, 953 $45. 81 New Hampshire ... __ 70.85 Massachusetts . . _ 71.08 Vermont 34.94 New England (4 States) 1, 214, 390 3, 962, 217 30.7 61, 393, 590 195, 138, 220 31.5 50. 55 United States 49.25 New England as per cent of United States IMPORTS OF WOOD PULP Imports of wood pulp into the United States from 1923 to 1928 ranged in value from $1,383,000 to $1,736,000 annually, showing a steady and substantial increase each year. About half of these imports came from Canada and the rest from northern Europe. The rate of increase has been about the same for Canada as the total for the other countries. A considerable proportion of the imports from Canada consists of mechanical pulp, but most of those from other countries are chemical fiber. The importation of wood pulp into the United States since 1919 has run parallel in tonnage with the importation of standard newsprint, both of which show marked increases year by year. United States Imports of Wood Pulp, 1917-1927 [Thousands of short tons] All processes Chemical Mechanical Year Total From Canada From other countries Total From Canada From other countries Total From Canada From other countries 1927 1,680 1,736 1,664 1,523 1,383 1,259 697 906 636 578 678 780 864 880 713 721 645 403 655 519 572 413 900 867 784 810 636 613 294 251 117 7 265 1,434 1,428 1,333 1,277 1,083 1,043 506 673 434 393 399 549 582 584 508 487 455 265 457 318 386 227 885 846 748 769 590 587 241 216 116 7 172 246 304 331 246 300 215 191 233 202 185 279 231 282 296 205 234 190 137 198 201 185 260 15 1926 21 1925 35 1924 41 1923 66 1922 21 1921 53 1920 35 1919... 1 1918... 1917 19 SECONDARY PAPER INDUSTRIES Aside from the primary manufactures of paper mills, the conver- sion of raw paper and pulp, outside of paper mills, into finished prod- ucts, such as boxes, cases, cartons, bags, envelopes, writing and 456 INDUSTRIAL STRUCTURE OF NEW ENGLAND printing paper, and various other paper goods, represented a New England production valued in 1925 at more than $100,000,000, en- gaged the activities of over 18,000 wage earners and added to the manufacturing income of New England upward of $50,000,000. PAPER BOXES In the manufacture of boxes (including shipping containers, both solid and corrugated, set-up and folding paper boxes and cartons) from paper and other fibers, New England contributed in 1925 about 12 per cent of the national production and engaged nearly 15 per cent of the wage earners. This branch of the paper industries shows a substantial increase in the number of wage earners since 1914 and also since 1904. Massachusetts produces about 65 per cent of the value of the New England output and contributes 60 per cent of the regional manufacturing revenue from this source, while Connecticut represents about 28 per cent of the output and 31 per cent of the manufacturing revenue. In the manufacture of paper boxes the value of the New England output increased substantially from 1925 to 1927, although there was a slight falling off in the number of establishments and in wage earners, accompanied by a slight increase in wages paid and a very material increase in the outlay for materials used in manufacturing, resulting in a slight reduction in the revenue from this activity. In Massachusetts and Rhode Island there were material increases both in value of product and in net revenue, but there was some falling off in Connecticut. Manufacture of Paper and Other Fiber Boxes in New England States Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 . 117 122 42 43 11 11 12 13 9 8 5,300 5,248 2,021 2,201 528 393 285 284 168 238 5,135 4,976 2, 125 2,198 468 345 211 185 140 213 12, 505 10, 827 4,592 3,578 571 397 337 252 408 310 24,264 21, 556 8,917 9,187 1,486 1,071 729 679 710 758 11, 759 1925 10, 729 Connecticut: 1927 4,325 1925 5,609 Khode Island: 1927 915 1925 675 MaiDe: 1927 392 1925 427 New Hampshire: 1927 302 1925 448 Total: 1927 191 197 174 154 8,302 8,364 7,400 5,919 8,079 7,917 3,318 2,068 18, 412 15, 364 6,070 3,378 36, 105 33, 251 12, 042 7,225 17, 693 1925 l 17,888 1914 -•-. 5,972 1904 2 3,847 United States: 1927 1,219 1,229 16.0 56, 398 57, 148 14.6 57, 701 57, 172 13.8 168, 464 151, 712 10.7 306, 555 281, 944 11.8 138, 091 1925 130, 232 New England as per cent of United States: 1026 --- 13.7 1 Exclusive of 3 establishments in Vermont. 2 Exclusive of 1 establishment in Vermont. Note,— No separate figures are available for the different types of containers. PAPER AND PAPER PRODUCTS 457 MISCELLANEOUS PAPER PRODUCTS AND ENVELOPES In the manufacture of miscellaneous paper products the New England factories increased their activity and their output sub- stantially from 1925 to L927. The number of establishments in- creased in Massachusetts by 5 and in Rhode Island by 1, while in Connecticut there was a reduction of 1. In the manufacture of envelopes there was considerable increase in Massachusetts, which is the only important producing Stiate in this line. Massachusetts produced nearly a quarter of the national value in 1925. In miscellaneous paper products, such as paper cores and tubes, drinking cups and dishes, towels and toilet paper, and waxed paper, New England in 1925 produced 17 per cent of the national output. Upward of three-fourths of the New England production comes from Massachusetts, while Rhode Island and Vermont each con- tributed 11 per cent of the New England total. The manufacture of labels, tags, and cards is also of considerable importance in New England, one of the country's principal manufacturers in this line being located in Massachusetts. Manufacture of Miscellaneous Paper Products in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 54 49 11 10 5 5 4 5 2,007 1,844 400 384 201 216 36 43 2,414 2,218 456 440 201 203 47 49 11,015 9,374 1,175 1,033 1,752 1,850 120 136 18, 241 15, 896 2,345 2,309 2,340 2,372 229 262 7,226 6,522 1, 170 1925 Rhode Island: 1927 1925 1,275 Vermont: 1927 588 1925 522 Connecticut: 1927 105 1925 126 Total: 1927 74 69 310 2,644 2,487 13, 386 3,118 2,915 15, 403 14, 062 12, 393 70, 700 23, 155 20, 839 124, 217 9,093 1925 8,445 United States: 1925 53, 517 Manufacture of Envelopes in Massachusettes Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 17 16 11 153 135 11.9 2,228 2,027 1,781 9,745 9,052 22.4 2,490 2,220 803 10, 755 9,987 22.2 7,869 6,687 2,850 28, 973 27, 423 24.4 13, 876 11,924 4,979 56, 008 51, 189 23.3 6,007 1925 5,237 1914 2,129 United States: 1927 27, 033 1925 23,766 Massachusetts per cent of United States in 1925 22.0 458 INDUSTRIAL STRUCTURE OF NEW ENGLAND GENERAL VIEW OF THE PAPER INDUSTRY The experiences of manufacturers of paper products in the various parts of New England, based upon conditions of production and marketing that have existed in this industry in the last few years, are summarized in the following paragraphs. This portrays, in general, the present situation in New England paper manufacture. In reply to inquiries which were sent to every paper manufacturer in New England, 174 paper companies, with sales aggregating over $200,000,000, provided information regarding their operations and marketing practices. These replies represented well over half (57 per cent) of the total New England output of paper and paper products. The representation by States was as follows: Massa- chusetts 105, Connecticut 29, Maine 12, New Hampshire 12, Rhode Island 9, Vermont 7. Other concerns which submitted partial information, and which are not included in these totals, bring the number of companies replying up to 185. GROUPS REPORTING In order to bring out the full significance of the information sup- plied by these firms, the replies were classified in four groups, cal- culated to represent the different types of market reached by their products. The first group includes paper mills which are primary makers of paper from wood pulp and other raw materials. There were 43 companies reporting in this group, with aggregate sales of $98,500,000. The materials most commonly used by them were re- ported as pulp, or pulp wood, and rags. The pulp mills use also considerable quantities of lime, alum, sulphur, and other chemicals for processing. Sixteen companies reported as their major product fine paper (bond, ledger, and writing) ; 10 of them make tissue, 3 others newsprint, and 3 manufacture book and other special kinds of paper, in addition to pulp. Six of these concerns reported the sale of wood pulp as well as paper. The second group comprises companies which purchase paper or pulp from the mills and finish it for the market. This class includes the concerns known in the trade as converters. There were 36 com- panies in this group with aggregate sales exceeding $46,000,000. The products represented were glazed, embossed, and surface-coated paper, ledger paper, writing paper and envelopes, tablets, gummed and waxed wrapping paper, toilet paper, bags, labels, and cards. Several of these concerns make also paper boxes or other special paper products. The principal purchased materials reported by this group, in addition to paper, are china clay, casein, colors, wax, and glue. The raw paper comes in most instances from New England sources, while the other materials were reported to be purchased mainly in New England or in New York City. In the third group are the makers of folding or set-up boxes, car- tons, and cases. There were 65 replies in this group, reporting sales that exceeded $31,000,000. The principal materials used by these box manufacturers were reported as plain or corrugated paper board or Bristol board, glue, and a few other minor materials, all of which were said to be purchased generally in New England. PAPER AND PAPER PRODUCTS 459 The fourth group includes makers of a various line of paper prod- ucts, of which the principal ones are box board and Bristol board, fiber materials, tubes, cores, cloth rolls, cups and containers for liquids, wall paper, roofing paper, and building paper. Materials most commonly used by these are waste paper and rags, other paper stocks, strawboard and chip board, with special materials for indi- vidual products. These raw materials are obtained for the most part within New England. There were 30 companies reporting in this group of products, with total sales exceeding $25,000,000. AGE OF INDUSTRIES The primary manufacturers of paper, as a whole, have been es- tablished longer than the other groups, about 70 per cent of these 43 concerns having been in business for more than 25 years, in con- trast with about 50 per cent in the other lines. The average age of all paper mills reporting was 39 years. This average is considerably higher in Massachusetts than in Maine, New Hampshire, and Ver- mont. A few of these mills have been in operation for a century, and there w T ere several whose age exceeded 60 years. Three of the concerns have come into business within the last 10 years. Of 33 converters making finished paper, on the other hand, 10 had been established within 10 years, and of 65 box manufacturers, 11 had come into existence within the last decade. Greater stability is indicated in paper manufacturing than in some of the other industries of New England, as reflected by a comparison of changes in management. The average period under present management for the reporting paper mills was 23 years, and for the miscellaneous group 15 years. One-fourth of the pri- mary manufacturers indicated changes of management within the preceding 10-year period, and one-third of the makers of finished paper, while among the makers of paper boxes the proportion was one-fifth. SIZE OF ESTABLISHMENTS There is striking contrast in the scale of individual operations among these four groups. In the primary group the average em- ployment in 1925 was 346 workers and the average sales $2,400,000. The average for the paper converters, with 188 employees and aver- age sales of $1,293,000, was only a little over one-half that of the preceding group. The makers of miscellaneous paper products show a considerably smaller average size, with 99 employees and average sales of $900,000 in 1925; while the box manufacturers showed the smallest average, with 73 emplovees and average individual sales of $480,000. As regards the size of individual establishments, the 43 primary manufacturers included 20 concerns, each doing a business exceed- ing $1,000,000, and these accounted for about 90 per cent of the total sales for this primary group. Of these companies there were six whose individual sales ranged between $5,000,000 and $15,000,000 ; each of these employed over 500 workers, these 6 thus accounting for two-thirds of the total employment for the group of 43 companies. 460 [INDUSTRIAL STBUCTUR1 OF NKW ENGLAND Of the 36 converters making finished paper, 4 companies, with individual sales of several million dollars each, accounted for over four-fifths of the aggregate sales of the group, while 26 smaller concerns, with business ranging from $500,000 to less than $100,000, accounted for only 8 per cent. Of these concerns there were 31 which employed fewer than 100 w r orkers each; these accounted for only 13 per cent of the total reported employment in this group. Among the 30 manufacturers of miscellaneous paper products 5 of the largest concerns accounted for 85 per cent of the aggregate sales, while 23 concerns with sales between $500,000 and $10,000 accounted for only 15 per cent of the sales and 25 per cent of the employment. Among the 65 box manufacturers there were 9 concerns with individual sales ranging between $500,000 and $10,000,000, which accounted for 74 per cent of the group total, and 44 concerns with sales under $250,000 each, which accounted for only 12 per cent. Only 14 of these companies employed over 100 workers each, and 41 of them employed fewer than 50 workers each. CONDITIONS OF PRODUCTION Reports of changes in plant capacity since 1921 indicate that in- creases were most numerous among the manufacturers of paper boxes, while the most outstanding individual increases w r ere in the group making miscellaneous paper products. Thirty of the box manufacturers added to their capacity in proportions ranging from 10 to 100 per cent; 17 of these made increases from 50 to 85 per cent, while 5 other concerns reported 100 per cent increase. Among the makers of miscellaneous paper products seven companies re- ported increases. A small company making cups reported 200 per cent increase, and another making paper containers reported 100 per cent increase. A maker of fiber sheets, doing a $3,000,000 busi- ness, increased his capacity by 150 per cent, and a large maker of paper roofing material reported an increase of 75 per cent. Among the primary manufacturers operating paper mills, 2 of the largest reported increases of 12 and 20 per cent, while 2 others reported 35 and 100 per cent, respectively. On the other hand, 1 very large concern and 1 medium-sized mill reported reductions of 10 and 15 per cent each. Among the converters of finished paper, eight concerns reported additions of 10 to 50 per cent. A $5,000,000 concern reported a 50 per cent increase, and a concern still larger increased 10 per cent. A fair indication of activities in the different groups is afforded by the ratio of the output in 1925 to the maximum capacity of plants in that year. Most of the companies indicated this in terms of per- centages, and from their replies a weighted average for the group was obtained, based upon their 1925 sales figures. The box manu- facturers showed the highest proportion, with 83 per cent of maxi- mum capacity. The converters of finished paper showed 80 per cent, while- the miscellaneous paper manufacturers had an average of 78 per cent. Among the paper mills engaged in primary manu- facture, with aggregate sales of $88,500,000, the average output was 78.2 per cent oi maximum 1925 capacity. PAPER AND PAPEB PRODUCTS 461 LABOR AND EMPLOYMENT The seasonal tendency of employment is less pronounced in the paper industries than in some of the other lines of New England manufacture. Among the paper mills and the converters the replies indicated thai in L925 employment reached its peak during the month of April and gradually diminished until late in the fall. The varia- tion from month to month in the number of wage earners employed in New England paper mills, as shown by the census for that> year, was 8.1 per cent of the average number for the year. This is con- siderably lower than the variation in several other New England industries. The seasonal tendency has been smoothed out in part by the de- velopment of new lines of products, especially among the paper mills of Massachusetts and Maine. The tendency toward shorter commitments on the part of buyers has tended also to bring about more uniform operation of mills throughout the year. One large manufacturer of fine w T riting paper reported the addition of paper towels and bleached pulp for rayon manufacture to his main line. Another making tissue paper has added crepe-paper napkins. Other concerns have been able, by careful study of the market, to maintain uniform production without supplementary lines. Among the makers of paper goods the replies indicated a varia- tion of employment between minimum and maximum periods of about 3 per cent, which is remarkably low in comparison with other industries. This is the result, in part, at least, of definite efforts to develop supplementary lines of products that are manufactured dur- ing otherwise slack periods. The manufacture of standard items for stock during dull periods is also generally reported. Among the paper-box manufacturers also the replies indicated only slight change in the total number of employees at different periods of the year. There is evidence in many of the reports that this condition is the result of definite efforts to provide supple- mentary products to overcome seasonal tendencies. One manufac- turer states that he is constantly seeking new uses for boxes in order to create a demand during slack periods, and a similar policy was reported among many other plants. INCENTIVE METHODS OP PAYMENT The use of incentive methods of wage payment, such as piecework or similar means, varies widely among these different groups of paper manufacturers. Many of the paper mills find it difficult to pay otherwise than on an hour or day basis, on account of the irregularity and variety of operations requiring attention, and because of the automatic machine processes that are employed. This makes it diffi- cult to set up standards upon which an equable plan of payment based upon results can be built. The impression prevails also among many mill executives that on account of the mechanical nature of most of the processes of producing paper the question of wage in- centives does not merit a great deal of attention. There are, how- ever, some New England paper mills that are paying a consid- erable proportion of their workers on an incentive basis. One Mas- sachusetts concern making bond paper reported the payment of all 462 INDUSTRIAL STRUCTURE OF NEW ENGLAND its workers on this basis, and another pays 95 per cent of its workers on such a basis; while a large company in Maine making fine writing paper reports 80 per cent of its workers paid by piecework. Several other concerns reported from 10 to 25 per cent of their workers paid in this manner. Of the concerns making paper products only a few indicated the use of incentive methods of payment, but in individual cases as high as 50 per cent of workers are paid on this basis. The box manufac- turers are a conspicuous exception in the paper industry, for in this group 70 per cent of the establishments reported the use of piecework or other incentive methods among their employees. The proportions range from 10 to 100 per cent of their pay roll, the most common proportion being from 50 to 60 per cent. IMPROVEMENTS IN PRODUCTION Improvements in one or more important phase of manufacturing activity have been general in the paper industry. These improve- ments are not limited to the larger concerns, as more than 80 per cent of all those replying indicated that they have been devoting thought and study to the improvement of their manufacturing con- ditions. Among the primary manufacturers a good deal of attention has been given to the continuous maintenance of equipment, as well as to organization and executive control. A large number of in- stances indicated attention to improved methods of production con- trol and of cost accounting. Industrial research is receiving special attention among several of the larger companies. Among the makers of paper products efforts have been made to standardize materials and products and to maintain continuous oper- ation of plant and equipment. One concern reported that by the development of purchasing schedules and the resulting improved rate of turnover, its investment in inventory has been reduced, while another stated that production control methods had been responsible for an increase in average monthly production from 200,000 to 650,000 pounds within a 5-year period. In another case the motorizing of machines and running them through the noon hour was said to have resulted in an 80 per cent increase in production. One box-manufacturing concern reported the reduction of costs by increasing the output per employee and reducing labor turnover. In this connection another stated that a bonus system of wage pay- ment has been of assistance. In another instance the reorganization of sales efforts and better production methods are credited with an increase of approximately 20 per cent in sales. Methods of cost accounting are credited by another manufacturer as of the greatest benefit. The attitude of the paper mills of New England in regard to the installation of new and improved equipment is indicated by replies to a special inquiry directed to a number of leading executives of the industry. These executives indicated that it is their general practice to make constant improvements in machinery that will re- sult in increased output and improved quality of product. This often means a w\y heavy financial outlay. One executive stated, " Once we are convinced of the practicality of any improvement pre- sented to us. we never hesitate to put it into operation immediately, PAPER AND PAPER PRODUCTS 463 often only experimentally. We feel satisfied that there are a number of concerns in New England which have the same policy; but at the same time we know of some others which are definitely suffering be- cause they have not operated on this policy." Another executive says, "We have met with much success in designing and building machines of our own invention to replace hand operation." The executive of another company reports that during the last six years his company's efforts have been redoubled along the line of improved equipment, to the extent of scrapping thousands of dollars worth of machinery. SALES AND MARKETING In considering the trend of sales in the paper industry it is im- portant to bear in mind the pronounced changes in price of paper and paper products during recent years. These, of course, are re- flected in the changes in total value of production, as well as in the sales of individual companies. A falling-off in value of total sales, therefore, does not necessarily mean a corresponding reduction in plant activity. The pronounced contrasts in sales trends since 1921 among the different groups of manufacturers are doubtless attribu- table in some measure to price variations. Each of the four groups had a pronounced increase in sales from 1921 to 1923, as shown by the records of the reporting companies, but the manufacturers of paper products and of paper boxes sur- passed the primary manufacturers and converters to a noticeable extent. From 1923 to 1925 the sales trend of the former group con- tinued to advance, while the total for the primary manufacturers shows a falling off. Among the primary manufacturers the aggregate sales of 38 con- cerns, making a total of $97,000,000 in 1925, reveal an increase of 34 per cent from 1921 to 1923, followed by a decrease of 6 per cent from 1923 to 1925. This falling off occurred in 1924 and was partly made up by increased sales in 1925. While all but 4 of these companies showed increases in individual sales from 1921 to 1923, there were 20 whose sales decreased in 1925 from those of 1923. Sixteen concerns showed a continuous increase in volume of individual sales from 1921 to 1925, while 6 others showed decreases in this period. No relation is observed between the sales trend and the size of business, as some of the largest companies show decreases and some of the smaller ones show increases. The converters making finished paper show less shift in their sales trend in the different years. The aggregate for 30 converters, with sales of $46,000,000 in 1925, showed a smaller rate of increase (22 per cent) from 1921 to 1923 than that of the primary manu- facturers; but the converters' increase continued through 1925, with a slight decrease in 1924, resulting in a net increase of 6 per cent over the 1923 figure. All but 6 of these 30 companies had a greater volume of sales in 1925 than in 1921. Eleven firms, including one $5,000,000 company, had a falling off in 1925 sales as compared with 1923; while 14 others, including 3 concerns of over $5,000,000 each, had increased sales in 1925. Among the makers of secondary paper products the aggregate sales show a continuous increase since 1921. The sales for 28 com- 464 INDUSTRIAL STRUCTURE OF NKW ENGLAND panies aggregating $25,000,000 in 1925 showed an increase in 1923 of 57 per cent over 1921, and in 1925 an increase of 17 per cent over 1923, the total increases from 1921 being 82 per cent. All but four small concerns showed an increase in 1925 sales compared with 1921. Since 1923 there were 16 concerns whose individual sales decreased, including one doing a million-dollar business. There were 12 others whose sales in 1925 surpassed those of 1923, one of these concerns doing a $3,000,000 business, and another concern over $10,000,000. The makers of paper boxes experienced a net increase throughout this period, as shown by the experience of 63 companies doing a total business of $31,000,000, but their rate of increase was less than that of the makers of miscellaneous products. The sales of 1923 showed an increase of 43 per cent over 1921, and a slight increase, amounting to 1.4 per cent, in the 1925 total compared with 1923, with a slight falling off in 1924. All but eight of the concerns in this group had greater sales in 1923 than in 1921. Significant decreases in sales from 1923 to 1925 were shown by 28 concerns, including 2 concerns doing a $1,500,000 business, and 1 concern of $10,000,000. There were 22 other companies showing significant increases in sales of 1925 compared with 1923, including 5 companies with a business over $1,000,000 each, 1 of these concerns being a $3,000,000 com- pany, another $4,000,000, and another $10,000,000. Among the mill owners the major reasons for declining sales were given as a general over-capacity, competition from other sections, and high labor costs; while the mills whose individual total sales have increased attribute their increases to low T er manufacturing costs, to better sales methods, and to new products. Among the manufac- turers of paper goods, those that reported an increase in total sales during the period since 1921 believe the contributing factors have been the extension of sales territory, the application of new x and bet- ter selling methods, and a reduction of costs, which has enabled them to quote lower prices. Among the manufacturers of paper boxes that have had an increase in total sales, the largest number consider that lower production costs have been an important factor, although new sales methods and extension of territories are also emphasized. Other concerns whose sales declined during the same period attribute this downward trend to general overproduction and competition. This industry suffered to a considerable extent in the reduction of its market among shoe manufacturers and some other New England industries. LOCATION OF MARKETS The replies indicate that most of the New England paper mills sell the greater part of their output outside New England. The weighted average of sales in New England for 37 of these primary manufac- turers, with a total output in 1925 of about $94,000,000 was 28 per cent. Two small companies reported the sale of their entire product in New England, and 10 others make the majority of their sales in those States. The reports of 25 mills, including all the largest ones, indicated the great majority of their sales outside New England, their sales in that section in most instances ranging from 10 to 30 per cent, and in some instances less. PAPER AND PAPER HIODlTCTS 465 The larger paper manufacturers sell their products throughout the United States, but the principal marketing centers outside New Eng- land are supplied through New York channels. Exports in this group were reported by 15 concerns, the commonest range being from 1 to 3 per cent, although several companies export a considerable por- tion. One company, with sales amounting to $1,500,000, reported exports of 13 per cent of the total; another, with sales of $8,000,000, reported 7 per cent; and one concern with sales over $10,000,000 exports 5 per cent of its output. Among the converters and makers of finished paper, replies from 32 concerns indicated New England sales averaging 19 per cent of their aggregate output; 15 of these, however, reported the majority of their sales in New England, while 17 sell more in other sections of the country. Some of these products have national distribution, but most of them find their principal market in the Middle Atlantic States. Some sales are reported in the Middle West, in the South, and on the Pacific coast. Twelve of these concerns reported exports, the usual range being from 1 to 5 per cent. A maker of special safety paper reported exports of 14 per cent, and a large manufac- turer of tags and crepe paper exports 9 per cent of his output, while a maker of waxed paper reported exports of 8 per cent. The makers of other paper goods show a much higher proportion of their sales within the New England States. The average for 28 makers of these secondary paper products, with sales aggregating $25,000,000, was 46 per cent of their output in New England. Seven- teen of these companies reported the majority of their sales in that section, while 11 reported more than one-half of their output as sold outside New England. Exports were reported by 5 concerns, but only 1 of these reported more than 1 to 3 per cent. This one concern, making fiber sheets and tubes, exported 10 per cent of its product. Of 65 box manufacturers, with sales in 1925 exceeding $30,000,000, the sales made within New England amounted to 74 per cent of their total output. Thirty-seven of these companies find their en- tire market in New England, and 25 others sell from one-half to nearly all of their products in those States. Only 6 concerns re- ported their major sales outside New England, but 2 of these were relatively large establishments. The exports reported by this group are of slight consequence, except in the case of one $10,000,000 box- manufacturing business, which reports exports of 3 per cent of total output. The replies from the paper mills give evidence that the New England market has become of increasing importance to the pri- mary paper manufacturers, as 80 per cent of them state that sales in New England have been on the increase. These increases are attributed by individual manufacturers to stronger selling efforts, to the increased demand for paper products, such as paper napkins and towels, to direct selling to converters, and to increased purchases by the converting trade. Several concerns indicate increased empha- sis upon sales in New England, such as advertising and more extensive canvassing, and circular-letter campaigns. Among the paper-box manufacturers 31 companies reported that sales in the New England 466 IKDUSTRIAE STRUCTURE ok xkw kx(;lani> market in the preceding three years had been increasing, while 18 reported decreases, and the others indicated little change in the volume of New England business. CHANNELS OF DISTRIBUTION The main channels of distribution from the paper mills are to wholesalers and jobbers, or direct to the converters who are engaged in making paper products. A number of mills reported sales through exclusive distributors, while a few sell a portion of their output direct to retailers or through their own stores. About the same number reported sales through single channels of distribution as through multiple channels. Manufacturers of finished paper in- dicated sales equalty to wholesalers and direct to the consumers of their product; this applies also to the makers of secondary paper products. Among the box manufacturers the principal single channel of distribution is direct to the consumer. This refers to sales to manu- facturers who purchase boxes and cases for packing their products. A number indicated sales to wholesalers and jobbers, and several sell direct to retailers. Sixteen of these box manufacturers indi- cated the use of more than one channel of distribution, while 51 others rely upon a single channel. The practice in regard to the identification of product by a brand or trade-mark was indicated by 95 replies covering these four groups of manufacturers. Of this number 69 indicated that all or a greater proportion of their product was thus identified, while 26 companies indicated such practice on a minor proportion or on none of the product. Among the different groups the practice of those answer- ing this question was indicated as follows: Of 34 primary paper manufacturers, 27 trade-mark all or the major portion of their product; of 30 converters of finished paper, 17 trade-mark the major portion; of 18 makers of miscellaneous paper products, 15 use a trade-mark; and of 13 box manufacturers replying, 10 indi- cated the use of trade-marks. The use of a variety of advertising mediums w 7 as indicated. Direct mail is the medium most commonly used, supplemented in numerous cases by the trade journal and by dealer helps. Among the box manufacturers the commonest medium is the trade journal. Four of these concerns reported the use of directories, and 2 others men- tioned newspaper advertising. The box manufacturers depend, for the most part, upon local advertising mediums, while those in the other groups, particularly the primary manufacturers of paper and the converters, use national mediums. SALES ORGANIZATION? OF PAPER MILLS Executives of a number of representative paper mills who were asked to describe their selling organization submitted the plans em- ployed by their companies. These replies are instructive in showing the merchandising methods that are proving successful among some of the prominent mills in New England. The executive of one such concern which maintains a high standard in its product reports that the policy of his company is to restrict its territory to as narrow a PAPER AND PAPER PRODUCTS 467 radius as possible, in order to economize in delivery costs on a prod- uct which runs into considerable tonnage. The large use of its prod- uct in this territory enables the company to keep in close touch with its customers' requirements. This company finds it necessary to employ but one salesman, on account of its trade connections with a preferred list of customers, and the bulk of the mill's product is sold by one of the officers. Another paper mill sells practically its entire output to two cus- tomers whom it has supplied for a number of years, thus making it unnecessary to maintain a sales organization. The marketing problems of another concern making a specialty product of high value but low volume is simplified by the fact that its output is marketed under an annual contract. Another mill markets the most of its product through direct-mail advertising, with the aid of circular letters, which are sent frequently to the general trade. In another instance the selling end of the business is divided up among three executives. In contrast with these instances, one large paper mill reports the establishment, since 1920, of offices in San Francisco and Chicago, with three times the former number of salesmen. Very complete records are kept to show the sales in different localities, the number of times they are visited, and other market information regarding these areas. A great deal of the work of salesmen, who are paid on a salary basis, consists of talking to the trade and introducing the paper. Another manufacturer of high-grade paper held that more aggressive representation and closer contact with the general trade was necessary to market this product under the changing con- ditions of the industry. METHODS OF DISTRIBUTION The methods of distribution vary with the type of product and the policy of the different mills. One of these markets its stand- ardized brand only through merchants, but sales of special paper and of paper to be converted into finished commodities for resale are made direct to the converters. In carrying out this policy the United States is divided into zones, with selling prices for the stand- ardized product made applicable to each respective zone. With this method of distribution the home staff of salesmen is strength- ened by the efforts of the company's distributors, giving it a selling force running into the thousands. The salesmen are paid a fixed salary and expenses, with additional compensation based upon the business returns of the company. Another mill follows^ the policy of selling its product direct from mill to consumers and jobbers, ex- cept in the case of newsprint, which is sold direct to the pub- lishers. A part of this concern's product is sold on a commission basis, and the rest is handled directly from its main office and its sales office maintained in New York. A large manufacturer producing paper of several different types describes his sales organization as follows: On all papers which are sold to printers, and consequently bought by them in small quantities for a particular demand, we distribute all over the country through jobbing agencies, which stock our papers and deliver them to the printers. On certain special papers like blue-print papers we sell them through 468 INDUSTRIAL STRUCTURE OF NKW ENGLAND the artist houses or direct to the trade, where the demand is Large, Papers for papeterie purposes we sell to the papeterie converter*. I'm per for greet- ing-card purposes we sell sometimes to the greeting-card houses and some- times to paper merchants who deal with these houses. We also have ;i num- ber of direct connections with concerns which do converting in a large way. Another large mill with national distribution divides the United States into five major selling districts, most of which are served by branch warehouses located in different parts of the country. It employs not far from a hundred salesmen, most of whom are paid on a commission basis. This concern has been engaged in an intensive study of the market for its product, with the inten- tion of placing its selling methods on a more scientific basis. In carrying out this program it decided " to separate the functions of merchandising from those of selling, and to establish a merchandis- ing department to have charge of creation of all new articles for sale, in addition to inventory turnover and various other matters that are a function of merchandising, as distinct from selling or marketing." CHANGES IN THE PAPER MARKET The attitude of a number of mills and mill executives was obtained also in regard to consumer demand which has made decided changes in the market for the product of New England paper mills during the last few years. One executive reported a tendency on the buyer's part to discriminate more closely regarding quality, along with some tendency to reduce the volume of individual orders, which is encouraged by the rapidly growing method of delivery by automobile truck. Another executive reported that, as a result of small-order buying, the mill is required to carry a large supply of finished paper to meet numerous small orders, calling for many express shipments. Another reply stated that the paper merchants no longer carry such large stocks as they did before the war, and that they are compelling the mill men to do this. This tendency, in the opinion of another executive, is strengthened by the introduction of standardized mill-advertised brands of paper, thereby creating a certain consumer demand which the merchant is endeavoring to satisfy. He thus calls upon the mill for such quan- tities as are specified in the ultimate consumer's order. Because of the great variety of these mill-advertised brands, the merchant has come to depend more and more upon the mill which stocks paper rather than upon his own warehouse stock. This in a measure has greatly reduced the unit of sale on the part of the mill as well as of the merchant. Consequently the merchant buys and stocks smaller quantities and the mill carries a greater stock of his particular brand. Regarding other changes in consumer demand, a converter mak- ing writing paper refers to the increase in demand for tissue-lined envelopes and to a change in demand from a medium-sized sheet and envelope to a large-sized sheet and envelope, which has necessitated many changes in plant equipment. This manufacturer reports that there have been many marked changes in consumer demand during the last few years, and refers particularly to the increasing importa- tion of foreign-made writing paper, especially by the department -tores throughout the United States, PAPER AND PAPER PRODUCTS 469 This competition is held to be a real factor in the industry, not only influencing the prices of merchandise but also leading to changes in styles. It is held that these foreign articles have a psycho- logical effect on the American consumer, and that, since this mer- chandise can be imported and sold at retail in the United States for less than the cost of domestic production of a similar article, the New England manufacturer feels this competition keenly. Another manufacturer indicates the difficulty of maintaining paper standards in the face of importation of paper at lower figures than cost prices here, by stating, " This makes a very foolish compe- tition, which, I believe, is caused by the fact that some mills do not fairly know their costs; but this fault is not confined to New England.'" Regarding changes in quality requirements, the executive of a Mas- sachusetts mill makes the following comment : "As manufacturers of high-grade bond, linen, ledger, and wedding paper, we have noted a marked change in consumer demand. The tendency is to lower grade and lower priced products, which, in these days of modern machine methods in connection with office work in general, answer the purpose very well indeed. In other words, where formerly only rag-content papers would be considered in connection with bond, linen, or ledger papers, the larger buying public to-day re- quires something that can be bought for much less money, and the result, as you know, is that the larger proportion of all papers is now in the sulphite grades." 61232°— 30 31 PRINTING AND PUBLISHING The value of output of the printing and publishing industries of New England in 1927 approached $188,000,000 and engaged the activities of some 36,000 wage earners and other persons. The in- dustry contributed to the revenue of the six States more than $136,000,000, and paid some $38,000,000 in wages. It is noticeable that in this industry salaries assume an importance quite comparable with that of wages, on account of the large proportion of workers who are on a salary basis. Salaries in 1925 amounted to $26,678,000, and wages to $36,644,000. The printing and publishing industry provides also a very substantial market for materials, the aggregate outlay for these in 1927 approaching $50,000,000. MAIN BRANCHES OF INDUSTRY There were 1,618 New England establishments in 1927 engaged in printing and publishing, in addition to publishers of music. These are classified by the census, on the basis of product, in three groups. The most important group, as shown by number of persons engaged and by value of output, is newspapers and periodicals. In this line there were 594 establishments in the six States. Their output, valued at more than $110,000,000, represented about 58 per cent of the printing and publishing industry in New England. The other important class includes book and job printing, which represents 40 per cent of the total industry. In this branch there were more than 1,000 establishments in 1927, whose production was valued at upward of $75,000,000. General job printing represented approximately 27 per cent, and books and pamphlets 13 per cent of the total printing industry. A third small group, confined to the State of Massachusetts, is the printing and publishing of music. In this there were in 1927 nine establishments employing 149 wage earners, with an output valued at $1,809,000. The importance of the two main branches of the printing and publishing industry in each of the New England States is shown for 1925 and 1927 in the following table. The census figures show that each branch has well maintained its position since 1925 and has substantially increased its contribution to the revenue of New England. 470 PRINTING AND PUBLISHING 471 Printing and Publishing in New England States, 1925 and 1927 Estab- lishments Persons engaged Thousands of dollars State and year Total Wage earners Salaries Wages Cost of materials Value of products Value added by manu- facture NEWSPAPERS AND PERIODICALS Massachusetts: 1927 332 333 89 87 27 26 53 48 58 49 35 37 5,664 5,339 1,951 1,994 709 607 973 928 377 367 243 252 11,977 10, 903 3, 520 3,367 1,342 1.240 1,205 1,202 578 577 361 371 22, 077 20, 647 5,320 6,003 1,551 1, 527 1,854 2,089 478 397 254 251 72, 314 66, 617 20, 695 19, 916 6,682 6,096 6,596 6,551 2,538 2.016 1,461 1,482 50 237 1925 11,432 12, 023 45, 970 15, 375 13, 914 5, 131 Connecticut: 1927 1925 3,600 3,686 Rhode Island: 1927 1925 1,188 1,088 4,569 4,742 4,463 2,060 1 619 Maine: 1927.. 1925 1,513 1,021 New Hampshire: 1927 1925 583 330 Vermont: 1927 1,207 1925 440 297 1 231 Total: 1927 594 580 9,917 9,487 ~"l§~446~ 18, 984 17, 660 31, 535 30, 915 110, 287 102, 680 78, 752 71, 765 1925 18, 756 BOOK AND JOB PRINT- ING Massachusetts: 1927 681 609 162 162 64 65 37 32 56 55 24 25 8,569 8,765 1,721 1,714 782 867 829 645 360 368 289 316 13, 294 13,542 2,438 2,439 1,068 1,126 1,219 901 475 468 436 417 13, 090 13, 732 2, 512 2,636 1,201 1,297 469 402 502 534 367 323 57, 852 57,045 8,260 7.997 3,971 3, 759 2,554 1,978 1,677 1,646 1,141 1,103 44, 762 1925 11,907 6,069 43, 313 5,748 Connecticut: 1927 1925 2,271 876 5,361 Rhode Island: 1927 2,770 2,463 1925 1,169 583 New Hampshire: 1927 2,085 1925 751 164 1,576 Maine: 1927 1,174 1925 521 187 1,112 Vermont: 1927 774 1925 378 96 780 Total: 1927 1,024 948 12,550 12, 675 18,930 18,894 18, 142 18, 923 75,454 73,529 57, 312 1925 16, 997 7,975 54,606 NEWSPAPERS AND PERIODICALS The number and circulation of newspapers in each State, classified as dailies, Sunday newspapers, weekly newspapers and periodicals, and foreign-language newspapers, are shown as of 1925 in the next table. 472 INDUSTRIAL 8TBUCTUBE OF NKW ENGLAND Number and Circulation of Newspapers Published in New England in 1925 Daily Sunday Weekly (in- cluding peri- odicals) Foreign language Total State S p a .2 td a 5 b 9 § B p o 3 o O 3 ,2 a 9 | U Daily Weekly 5 u a | 1 <3 a | o O a 5 g New England 155 11 11 10 79 11 33 3, 407, 050 388, 967 117, 466 27 4 1, 881, 080 110, 364 386 141 40 36 214 12 47 1, 689, 153 i 84, 124 65. 895 68, 567 1, 292, 593 46, 937 147, 008 631 7. 222. Qftf Maine. 56 SR3. 4/iS New Hampshire 51 46 341 183, 361 Vermont 68, 567 Massachusetts 2, 435, 763 15 1, 583, 667 12 90, 673 21 106, 0.50 4 16,886 4 1 lfi.001 K SflK 74fi Rhode Island _.. 27 63, 823 Connecticut 464, 854 8 187, 151 92 815. 013 ' 1 Includes four triweekly or semiweekly publications in Maine with aggregate circulation of 15,971. INCOME TO STATES The significance of these publications, as well as that of other periodicals, in terms of money income to the individual States is shown in the table below. Income of Newspapers and Periodicals in New England States from Sub- scriptions, Sales, and Advertisements in 1925 [Thousands of dollars] Newspapers Periodicals State Subscrip- tions and sales Advertise- ments Subscrip- tions and sales Advertise- ments New England 19, 788 911 335 321 14, 375 1,176 2,669 51, 755 2,279 1,067 858 34, 730 4,535 8,286 9,824 1,255 61 23 6,655 27 1,802 11,834 Maine - 1,579 New Hampshire _ 81 Vermont __. 39 Massachusetts 5,475 Rhode Island 143 Connecticut... 4,517 H Receipts from total sales and subscriptions of all newspapers and periodicals, with receipts from advertisements, in 1925 amounted to more than $93,000,000. Over two-thirds of this amount came from advertisements and less than one-third from subscriptions and sales. With the newspapers, whose total income was $71,544,000, advertise- ments accounted for 72 per cent and subscriptions and sales only 28 per cent of the income. Advertising was thus the principal source of revenue. With periodicals, on the other hand, whose total income was $21,657,000, advertisements accounted for less than one-half — 45 per cent — and receipts from subscriptions and sales comprised 55 per cent of the total income. The number and circulation of weekly, monthly, and quarterly periodicals in the different States are shown by period of issue in the PRINTING AND PUBLISHING 473 next table. It is noticeable that the monthly periodicals greatly over- shadow the weeklies and the quarterlies, both in number and in circulation. Number and Circulation of Weekly, Monthly, and Quarterly Periodicals in New England in 1925 Class and State Number Aggregate circulation per issue Weekly: Massachusetts 52 6 6 85 10 4 18 3 880, 930 49, 948 3, 658, 250 2, 934. 306 1, 052, 726 12 226 Connecticut Monthly: Maine Massachusetts Connecticut _ New Hampshire _ Quarterly: Massachusetts-.. 670, 847 50, 185 Connecticut NATURE OF PUBLICATIONS The character of the publications is shown in the next table. Ke- ligious journals lead in circulation, and this type is followed by miscellaneous periodicals and by publications on agriculture, stock raising, and* similar subjects. Although the number of trade jour- nals published in Massachusetts is the same as that of religious pub- lications, the circulation of trade journals is naturally much smaller. There is a noticeable number of college and school periodicals, and of publications dealing with commerce, finance, and insurance. Character, Number, and Circulation of Periodicals in New England States in 1925 State and character of publication Massachusetts: Religion, Agriculture, stockraising, etc News summaries, general literature, and family reading Trade journals College and school periodicals Commerce, finance, and insurance Music, art, and drama Miscellaneous Connecticut: College and school periodicals Miscellaneous New Hampshire: College and school periodicals Circulation 1, 304, 262 817, 880 501. 321 187, 263 137, 400 60, 602 25, 646 501, 446 20, 848 941, 570 8,226 BOOK AND GENERAL JOB PRINTING The printing and publishing of books, and the commercial print- ing of pamphlets, circulars, and general advertising matter that goes under the name of job printing, are quite distinct from the printing of newspapers and periodicals, although there is considerable over- lapping of establishments whose activities embrace both fields. Book and job printing together are relatively the more important line in New England, comprising 9.1 per cent of the total output of the United States, while in newspapers and periodicals New England's 474 INDUSTRIAL STRUCTURE OF XKW ENGLAND portion was only 7 per cent of the United States total. Book and job printing comprise 40 per cent of the total New England output in the printing and publishing industry. The following table shows for the individual States the value of the output of these branches, as of 1925. Value of Books, Music, and Commercial Printing in New England in 1925 [Thousands of dollars] Books and pamphlets, printed and published, or pub- lished only Music, sheet and books Commercial printing State News- papers and periodicals printed for publication by others Books and pamphlets printed for publica- tion by others General job printing All other products New England.. . _ .. . 23. 746 76 18 9 23, 210 4 429 1, 545 5,690 29 1,104 42 4,298 10 207 5, 482 124 262 164 4,279 32 621 48,003 1,940 1,064 1.130 30. 601 3,919 9,348 65 Maine 2 New Hampshire ... 1 Vermont. _ . Massachusetts . 1, 532 2 11 20 Rhode Island . - 6 Connecticut ------ 36 Massachusetts stands out prominently in book publishing. This State produced a greater number of textbooks for school use in 1925 than any other State, exceeding considerably New York, its nearest rival, and Illinois. In the number of copies issued on religion and philosophy, Massachusetts ranks fifth in national importance. In each of the five principal classes of books the number of copies is shown for the individual New England States in the following table, as far as figures are available. Number of Books Published in New England States, by Classes, in 1925 Class Number of copies Massachu- setts Connec- ticut New Hamp- shire Rhode Island Textbooks for school use. Juvenile Religion and philosophy Fiction Poetry and drama 22, 489, 026 2, 448, 758 976, 923 654, 479 467, 848 2,008 2,228 5, 176 0) 16, 730 20, 000 0) 0) to to (0 0) 8,000 0) 0) 1 Not available. The output of general job printing in New England had a value in 1925 slightly exceeding $48,000,000 in the aggregate of $73,529,000 for book and job printing together. Massachusetts leads New Eng- land in job printing, with 64 per cent of the New England total and an output of upward of $30,000,000. Connecticut follows, with over 19 per cent and an output of $9,348,000; Rhode Island, with 8 per cent and an output of $3,910,000; Maine, with 4 per cent and an out- put of $1,940,000. Vermont and New Hampshire each had about 2 per cent and an output slightly exceeding $1,000,000. PRINTING AND PUBLISHING 475 In addition to these lines of printing New England produced 10.9 per cent of the national output of sheet and book music. All but a very slight portion of this was produced by nine establishments in Massachusetts, whose output was valued at $1,532,000. GENERAL VIEW OF THE INDUSTRY A substantial proportion of the New England concerns in the vari- ous classes of printing supplied information regarding their acti- vities. The analysis of these replies is confined for the most part, however, to establishments engaged in commercial printing and in book publishing. Production of newspapers and periodicals, although of great com- mercial importance, does not involve special questions of manufac- ture and marketing to as great an extent as does production of the other types of printed matter, since newspapers and periodicals are a service product for current consumption, which for the most part is sold and consumed locally through channels of direct distribution. They both form a part of the local community structure, rather than of the broader industrial life. In the production of newspapers and periodicals, activity in New England naturally runs quite parallel with the groupings of popula- tion, except in cases of a few centralized publishing houses in special centers, such as Augusta, in Maine, and Springfield and Boston, in Massachusetts. The printing and the publishing of books and magazines are of out- standing importance in certain centers of New England, notably Concord in New Hampshire, Greenwich and New Haven in Connecti- cut, and Norwood and Boston in Massachusetts. Two of the largest publishers of school and college textbooks in the whole country have their headquarters in Boston. A large publisher of blank books is located in Holyoke, Mass. In Hartford, Providence, and Worcester there are also important publishing houses. The printing of circulars, pamphlets, catalogues, labels, color work, and other advertising matter is an important factor in New England industrial life, because it is closely related to the sales activities of many manufacturers. While Boston is naturally the largest center for this work, job-printing establishments are to be found in every city, and there are numerous ones of substantial size throughout New England. AGE AND SIZE OF ESTABLISHMENTS The printing of newspapers and periodicals is among the older enterprises of this section, with an average period of operation among reporting establishments of 63 years and a period under pres- ent management averaging 29 years. This is considerably greater than for book and job printing, whose average period of operation for 80 reporting establishments was 32 years, with an average of 18 years under present management. Very few establishments in either group had started operations within the preceding six years, and these were engaged in job printing alone. This is likewise the group in which changes of management have been most numerous. Branch establishments are of little consequence in the printing and publish- 476 INDUSTRIAL STRUCTURE OF NEW ENGLAND ing industry. Only two book publishers reported branches, one of which was in a neighboring New England city and another in the Middle West. Of 112 companies engaged in commercial and job printing, with a total business in 1925 of $14,235,000, there were 76 whose individual annual output was under $100,000 each, and these account for 23 per cent of the group total. This includes 32 establishments with indi- vidual business under $25,000. There were 30 establishments with annual business between $100,000 and $500,000, which accounted for 46 per cent of the group total. Six establishments between $500,000 and $1,000,000 accounted for 31 per cent. The job-printing establishments are, in general, relatively small. Only 14 of the 112 reporting companies employed 50 or more workers; 8 employed between 100 and 200, and only 1 employed over 200 work- ers. There were 98 concerns employing fewer than 50 persons, and 52 of these employed fewer than 25 workers. In pronounced contrast with these is the size of the book-printing establishments. Twenty-seven companies reported in this group with total 1925 sales of $30,987,000. Of this number there were 8 concerns with an individual output exceeding $1,000,000 and repre- senting 90 per cent of the group total. Two of these concerns had an annual business of more than $5,000,000 each. There were 12 concerns between $100,000 and $600,000 and 7 companies of less than $100,000 each. Twelve companies in this group employed upward of 100 persons each, and 3 of these employed more than 500 persons each. There were 11 companies employing fewer than 50 persons, and 4 others employing between 100 and 200 persons. The representation by States in the job-printing group included 76 in Massachusetts, 19 in Connecticut, 3 in Maine, 7 in Rhode Island, and 7 in Vermont. Of the book publishers there were 19 in Massa- chusetts, 3 in Maine, 2 in Vermont, and 1 each in Connecticut, Khode Island, and New Hampshire. Thirty concerns engaged in job printing reported additions to plant capacity since 1921, with increases ranging from 10 to 50 per cent. Two small concerns reported increases of 100 per cent, and 1 company with an output of $450,000 reported 90 per cent increase in plant capacity. Several others reported individual increases of 50 per cent. The average ratio of output in 1925, as given by 88 com- panies with a total output exceeding $10,000,000, was 67 per cent of maximum capacity. Five of these concerns reported operations at full capacity and 42 others at 75 to 95 per cent of their maximum, while 39 were operating between 50 and 75 per cent. Among the book publishers, 5 concerns reported additions to the capacity of their plants. A large publisher of books and magazines in Maine reported a 30 per cent addition and a small book printer in Massachusetts reported 60 per cent addition. A publisher of trade directories in Rhode Island reported 25 per cent increase and a Massachusetts publisher of school books and fiction reported a 15 per cent addition. A large textbook publisher in Massachusetts reported a slight increase in capacity. The output of 19 book publishers aggregating $24,000,000 was 80 per cent of reported maximum capacity in 1925. Four of these were operating at full capacity, 12 at 75 to 95 per cent, and 3 at 50 to 75 per cent, PRINTING AND PUBLISHING 477 MATERIALS PURCHASED The principal raw materials purchased in the printing and publish- ing industry are paper and printing ink and type metal. Book paper and newsprint were reported as purchased in the New England markets by a majority of the establishments. The sources for ink and for type metal were about equally divided between New England and other sections of the country, principally the Middle Atlantic States. EMPLOYMENT CONDITIONS The printing industry is fortunate in the lack of any pronounced seasonal tendency in employment. It remains quite uniform throughout the year. This has been helped to some extent in the group of book and job printers by the development of supplementary products during slack periods. The provision of piecework or other wage incentive does not prevail to any great extent in this industry, only a few concerns in each group indicating that they paid any portion of their workers on a piecework basis. One small job-print- ing concern, however, reported 60 per cent of its workers on this basis, and another reported 10 per cent. Two other concerns of fair size indicated that 20 per cent of their workers were on a piece- work basis, and a very large job printer reported 5 per cent of the workers paid by incentive methods. Among the book printers a large maker of blank books reported one-half of his workmen on a piecework basis, and another reported 45 per cent. Three other publishers of books and magazines reported a small proportion of their workmen on a piecework basis. TREND OF SALES The output of 92 concerns engaged in commercial and job print- ing showed, in the aggregate, a continuous increase from 1921 to 1925, except for a slight fall in 1922. The 1925 total was 17 per cent greater than that of 1921. The increase in 1923 was 9 per cent above the 1921 output. The aggregate output of 103 companies in 1925 showed an increase of 7 per cent above 1923. For this 2-year period the records of 37 concerns exceeding $100,000 each showed that 13 of them had a falling off in 1925, while 24 increased over 1923. In book printing the aggregate output of 26 concerns which in 1925 was $30,800,000 showed a continuous growth from 1921, result- ing in an increase of 55 per cent. The increase from 1921 to 1923 was 35 per cent, and that from 1923 to 1925 was 15 per cent. Of 19 concerns having individual business exceeding $100,000, 11 showed increases and 6 showed decreases in 1925, while 2 showed no change. Of 8 book-printing establishments exceeding $1,000,000 each, there were 5 which increased, 1 whose output decreased in 1925, and 2 remained unchanged. LOCATION OF MARKETS Practically all the reporting concerns engaged in job and com- mercial printing sell their entire output within New England, but a few T companies reported a portion of their market in New York City. A Massachusetts printer of advertising labels reported 55 per cent of his sales in New England and the rest outside, Two other Mas- 478 INDUSTRIAL STRUCTURE OF NEW ENGLAND sachusetts printers of advertising matter marketed 40 per cent of their output outside New England, and a printer of commercial stationery and letterheads reported only 35 per cent of his sales within New England. A Rhode Island printer of tags and labels and a Massachusetts printer of coin wrappers each reported only 25 per cent of their sales within New England. No export business of any consequence was reported by the commercial printers. While most of the book sales of the smaller companies were reported as made within New England, the larger concerns have national distribution of their products, and sell the greater part of their output outside of New England. Most of these indicated the Middle Atlantic States as their principal market, presumably refer- ring to New York City as a distribution center. Two large publishers of textbooks stated that exports comprised 6 per cent of their sales. A large publisher of general literature re- ported an export market amounting to 2 per cent, and another large concern printing blank books reported 5 per cent exported. None of the other book publishers indicated any exports. MARKETING METHODS The product of the printing industry is distributed, in most cases, directly by the printer to the user of the printed matter. This chan- nel of distribution was indicated as the prevailing one by the book printers as well as by the job printers, although in a few cases de- pendence was placed upon wholesale distributors or direct mail. Advertising by the book and job printers is usually by direct mail, while the newspaper and periodical group usually place their adver- tising in their own or similar publications. The average advertising cost, as reported by 20 establishments in the newspaper and periodical group, was 1 per cent of the total value of output in 1925, and in the book and job group it was 1.3 per cent. Selling cost, exclusive of advertising, for 20 establishments in the newspaper and periodical group was 6.7 per cent of the total value of products, while in the book and job group it was considerably higher, being 12.6 per cent. In the distribution of books to the consuming public, the retail book store was reported to be the prevailing intermediary between the publisher and the consumer. IMPROVEMENTS IN MANUFACTURING PROCESSES A large proportion of the book and job printers reported definite progress in the improvement of various manufacturing practices. The most frequent ones reported were those resulting from cost ac- counting, from improved relations between management and em- ployees, from organization and executive control, and from the control of production through continuous maintenance of plant and equipment. One reply stated that better cost accounting has been the means of eliminating unprofitable accounts. Another indicates that the keeping of more accurate records of production time in the factory lias assured more reliable cost figures. In another case production control is credited with the elimination of nonproductive time in the pressroom. PRINTING AND PUBLISHING 479 In another instance direct buying of paper from the mills instead of through paper jobbers is credited with a lessening of costs. In this case it was said that approximately 55 per cent of the total cost of the finished product was represented by the cost of paper. Recog- nition of the value of research is indicated by another printer in his statement : " Research for analysis of work has developed better production control, and through accurate fixing of costs this has increased sales and profits." In the group of book and job printers an upward trend in New- England sales was reported by 71 establishments, while 28 reported declining sales and the rest had experienced no change. Many opin- ions were offered to explain both the favorable trend and the un- favorable trend of individual establishments. Several whose sales have declined attributed this falling off to general business depres- sion, while other concerns which have had an increase in business credit the increase to more intensive sales effort or to new sales methods. A change in the demand for job printing was frequently stated as the chief factor in the decline of business of individual establishments. INDUSTRIES ACCESSORY TO PRINTING There are several lines of manufacture accessory to the printing and publishing industries which together make up a considerable contribution to the revenue of New England, although they do not stand out especially in the national picture. In these lines most of the activity is concentrated in Massachusetts, although there is some manufacturing in other States. Bookbinding. — Bookbinding is the most prominent of these acces- sory lines. In 1927 there were 97 establishments in this line in Massa- chusetts, Connecticut, and Maine, Eighty-one of these were in Massachusetts, where they gave employment to 2,500 workers and added about $6,600,000 to the State revenue. Engi^aving. — Photo -engraving, outside of that done in printing establishments, was represented by 64 concerns engaged in making plates for illustrations, art work, and half-tone engravings. There were 42 of these establishments in Massachusetts, which added upward of $3,000,000 to the State revenue. There were also 14 establishments in Connecticut, which added upward of $850,000 to the State income, besides 5 small establishments in Maine and 3 establishments in Rhode Island in 1925. Engraving of steel and copper plates and the printing of engraved stationery, cards, stock certificates, maps, and illustrations were rep- resented by 31 establishments in Massachusetts, Rhode Island, and Connecticut, which in 1927 added upward of $3,300,000 to the revenue of these three States. Lithographing.— Lithographing and printing of calendars, bank notes, commercial and bank forms, maps, and various advertising matter assume considerable importance in Massachusetts, where there were 10 establishments in 1927, which added about $3,300,000 to the revenue of the State. There are individual establishments also in Connecticut and Rhode Island for which no data are given. 480 INDUSTRIAL STRUCTURE OF NEW ENGLAND IMPORTANCE OF ACCESSORY LINES The importance of these accessory lines in New England is indi- cated in the following table. The figurese show no pronounced change in the group since 1925, although increases and decreases appear in the individual items and States. Industries Accessory to Printing in New England, 1925 and 1927 State and year Estab- lish- ments Wage earners Wages Cost of materials Value of products Value added by manufac- ture BOOKBINDING AND BLANK-BOOK MAKING Connecticut: 1927 11 12 5 7 81 82 44 72 46 71 2,509 2,648 57, 099 89, 522 51, 817 74, 881 3, 021, 732 3, 246, 360 38, 255 83,580 53, 745 67, 395 2, 515, 919 2, 896, 274 160, 951 288, 943 182, 053 217, 498 9, 112, 175 9, 347, 079 122, 726 205, 363 128, 308 150, 103 6, 596, 256 1925 Maine: 1927 1925 Massachusetts: 1927 1925 6, 450, 805 Total: 1927 97 101 1,063 2,599 2,791 21, 909 3, 130, 648 3, 410, 763 48, 281, 066 2, 607, 889 3, 047, 249 25, 875, 185 9, 455, 179 9, 853, 520 87, 327, 392 6, 847, 290 6, 806, 271 1925 United States, 1927 61, 452, 207 PHOTO-ENGRAVING > Connecticut: 1927 -.. 14 13 5 5 42 44 152 132 18 10 672 661 334, 270 292, 737 32,635 17, 349 1, 407, 282 1, 316, 651 118, 878 79,306 14, 550 9,665 482, 320 428, 397 977, 394 782, 707 89, 841 54, 837 3, 591, 989 3, 186, 067 858, 516 703, 401 75,291 45, 172 1925 Maine: 1927 - -. 1925 -- Massachusetts: 1927 3, 184, 960 1925 2, 757, 670 Total: 1927 61 62 611 842 803 11, 033 1, 774, 187 1, 626, 737 28, 381, 480 615, 748 517, 368 10, 790, 128 5, 274, 972 4, 023, 611 69, 207, 376 4, 659. 224 1925 3, 506, 243 58, 417, 248 United States, 1927 ENGRAVING AND PLATE PRINTING Connecticut: 1927 5 5 22 21 4 4 57 53 994 577 113 113 68, 971 60,568 1, 104, 156 669, 167 196, 432 198, 605 86,084 62, 870 1, 484, 248 715, 897 25, 097 32, 605 240, 257 201, 256 4, 312, 932 2, 214, 290 299,892 343, 977 154, 173 138,386 1925 Massachusetts: 1927__. 2, 828, 684 1925 1, 498, 393 274. 795 Rhode Island: 1927 1925 . 311, 372 Total: 1927 31 30 393 1,164 743 8,549 1, 370, 723 928, 340 11,885,737 1, 525, 429 811, 372 10, 236, 216 4, 853, 081 2, 759, 523 39, 071, 105 3, 327, 652 1925 1,948,151 United States, 1927 28, 834, 889 LITHOGRAPHING Massachusetts: 1927 10 11 309 984 1,174 16, 348 1, 501, 084 1, 642, 130 27, 465, 552 1, 753, 674 1, 916, 281 32, 703, 772 5, 048, 184 5, 448, 652 97, 050, 124 3, 294, 510 1925... 3, 532, 371 United States, 1927 64, 346, 352 i Not done in printing establishments. WOOD MANUFACTURES The wood industries were among the earliest forms of manufacture in New England. One of the first cargoes shipped to England by the colonists was made up largely of clapboards. Many family for- tunes in northern New England were made from the sale of pine and spruce timber in the early days. Relics of the activities of those days still persist in the remnants of the old logging towns and saw- mill sites which are scattered throughout the former timbered areas. Most of the original growth of New England timber was gone by 1890. The exhaustion of accessible native timber, the use of wood in pulp and paper making, and the cost of transportation have com- bined to reduce lumbering operations in New England to relatively small proportions. The development of finished wood manufac- tures in other regions with abundant native timber, such as furniture and turned-wood products in the Central and Southern States, has eclipsed New England manufactures in these lines. While little of the original large supply of softwood timber remains standing, there are adequate resources, particularly in hardwoods, for maintaining certain of the wood-using industries in these States. (See section on forests, pp. 48 to 57.) The present discussion is confined to the various manufactures in- volving the cutting and shaping of wood, and does not take account of wood manufactured into pulp and paper products in New England. The wood industries are of particular importance to New England because their basic materials come largely from the native resources of its forests and wood lots. These industries thus afford a market for such materials, particularly to northern New England, and a substantial source of revenue, by turning the standing timber into marketable products. The total contribution of all the wood-using industries, including primary production and finished wood manufactures, to the manu- facturing income of New England in 1927 was approximately $83,000,000. These industries engaged the activities of upward of 37,000 wage earners, who received about $44,400,000 in wages and salaries, provided a local market for materials used in the manufac- turing processes amounting to upward of $74,000,000, and turned out products with a gross value in excess of $157,000,000. The prevailing small-scale local operations of these wood industries is indicated by the large number of establishments, aggregating 1,658 plants of all types, with an average value of product per plant amounting to $94,860. 481 482 INDUSTRIAL STRUCTURE OF NEW ENGLAND IMPORTANCE OF VARIOUS BRANCHES The nature of the wood industries and their individual impor- tance in 1927 is shown in the next table, with comparative figures for 1925. A material falling off is noted in the total activity for this group yA l | j 7>I5CATAQ"> 5 \ 1 J-k 1 W/wws^'l 1 / £ I 11 \ [i \ \ \ J L ^y** 5 *^) /\ i > \ \ '■' ) r"T ^n c*ccos 1 § I ^ \ \ .*. ? A fiXj l tf* FB AN *LIH \ ORICAN5 1 ESSEX \ 1 \ 1 1 / 1 yycAPPoiA Q' ( * ' 7"^ ".*/•• [ 1 [ "H^.N/^ i ^ A J >^^ f*° 7 • / n%s. \ S • y OLl 'va*7 ^-\ (l | . i r ) f ^vvr'.X "*" mTl fa£d^~Ur\^l m\-\ *'[... \ CH [ ■ 5 "'^ H iLL5S°^V— ^ /£ J LOCATION OF ESTABLISHMENTS MAKING ( V " \/0^ V TURNED ft. CARVED WOOD PRODUCTS ^3 {including lasts) \fRA\KLIH 1 Mfl \jVIODLES£X ,*\I»V*» * / l~^ • • " f ' — )" •'•*Y** / IN /" * J rr/) ■" : ' L' 'JP*C««« NE - W ENGLAND STATES /' * t V - \ * ^> * " * r^ f~^T *Q 1927 / J /"""^ . V • • ) * iti&t* Al \ ^-^ DOTS SHOW NUMBER IN EACH COUNT Y . HAMPDLN 1 ( tfiJi^V^ l rcnfirt o\__^^^ h , iri[) \rou^NoJi wind. n/v V • paov r^ \ \ y B APN5TABLL j , — C^ 1 <^° c^) x's' n D 44M 4 6 Figure 44 of industries and in most of the individual lines in the 2-year inter- val. The branches designated as primary wood manufactures, in- cluding Lumber n\\<\ timber products, planing-mill products, wooden packing boxes, and cooperage, arc (he source of approximately one- half of the total manufacturing revenue from the wood industries. WOOD MANUFACTURES 483 Wood Industries of New England, 1927 and 1925 Estab- lish- ments Persons engaged Thousands of dollars Per cent (by value added) of all wood indus- tries Item and year Total Wage earners Wages and salaries Wages Cost of mate- rials Value of prod- ucts Value added by manu- facture Primary wood manufactures: 1927 1,075 1,293 621 786 319 339 107 134 28 34 346 361 273 263 20 26 22 25 11 18 16 24 4 5 237 232 164 147 29 34 44 44 " 26," 977 ~ ~I3,~830~ ~~7,'306' ~~5,~l42' ""699" " 14,' 665" " 12," 139" ""748" "~792~ ""664" ""~28l" --- "~6,~147~ "3,"735" "~I~214~ "l,"l39" 19, 599 22, 816 9,232 12, 487 5,293 6,031 4,152 4, 664 922 634 12, 240 12, 784 11, 184 10, 713 525 600 158 643 183 580 168 218 22 30 5 425 5,401 3,738 3,366 782 979 905 1,011 "30,~6§6~ "l2,"949" "ll,077" "5," 885" """774" ~20,"06T " 16," 727" "I," 006" ""94I" ""998" """"346" 43" "~6,"805" "3," 686" "i~926~ "~l,"l32~ 22, 517 25, 920 9,126 11,702 7,953 8,620 4,456 4,915 982 682 16, 325 16, 140 14, 887 13, 638 648 753 226 699 286 746 250 266 28 39 5,556 5,483 3,553 3,108 1,072 1,387 931 934 42, 479 52, 651 14,417 20, 330 15, 105 18, 242 10, 634 12, 274 2.323 1,806 24, 585 25, 079 21, 902 20, 862 1, 526 754 357 1,654 434 1,424 282 315 84 69 7,255 7,717 4,775 4,383 1,006 1,431 1,474 1,750 83, 872 99,841 30, 716 40,663 30, 772 35, 139 18, 501 20, 792 3, 883 3,247 55, 171 57, 541 49,060 45, 211 3,210 4,000 853 3,839 1,067 3,374 799 921 182 195 18, 243 17, 901 11, 642 9,729 a, 174 4,438 3,427 3,494 41,392 47, 191 16,299 20, 334 15, 666 16, 897 7,867 8, 518 1,560 1,441 30, 587 32, 462 27, 157 24, 349 1,685 3,246 496 2,186 633 1,950 517 606 99 126 10, 989 10, 184 6,867 5,345 2,168 3,008 1,954 1,744 49.89 1925 52.58 Lumber and timber products — 1927 . 19. 65 1925 22. 65 Planing-mill products — 1927 18. 88 1925 18. 83 Wooden packing boxes— 1927 i 9.48 1925 9.49 Cooperage— 1927 2 1.88 1925 1.61 Furniture and similar manu- factures: 1927 36.86 1925 Furniture— 1927 36.17 32.73 1925 -_. 27.13 Caskets— 1927 3 -_ 2.03 1925 3. 62 Window and door screens— 1927 4 _._ .60 1925 . •_. 2.44 Refrigerators — 1927 4 .76 1925 2.17 Mirror and picture frames— 1927 4 .62 1925 Billiard and pool tables — 1927 * .12 1925 .81 Wood turning, etc.: 1927 13.25 1925 11.25 Wood turned and carved — 1927 8.28 1925 5 5.96 Lasts, etc. — 1927 « ._ 2.61 1925 . 3.35 Woodenware — 1927 6 2.36 1925 1.94 Total: 1927 1,658 1,879 "47," 730" 37, 264 40, 956 ~57~491~ 44, 397 47, 489 74, 318 85, 293 157, 285 175, 043 82, 968 89, 750 100.00 1925 6 100. 00 1 Not including Vermont. 2 Not including Vermont and Rhode Island. 3 Not including Connecticut, Vermont, and Rhode Island. * Massachusetts only. b Not including 5 establishments in Rhode Island. 6 Not including Rhode Island. These industries are of principal importance in northern New England. In the rough-lumber products, Maine, New Hampshire, and Vermont stand out prominently, while Massachusetts and Con- necticut are the leading States in planing-mill activities, and Massa- chusetts and New Hampshire contribute the greater part of the 484 INDUSTRIAL STRUCTURE OP NEW ENGLAND wooden-box manufacture. Products of these primary wood industries enter into local consumption within New England either for building and construction or for packing material and containers. In build- ing and construction New England consumes much more than the area produces. Eough-lumber and timber production in 1927 contributed about $16,300,000 to the manufacturing income of the region, representing between one-fourth and one-fifth of the total income from all wood manufactures, with a product exceeding $30,000,000 in gross value. This production engaged the activities of 9,232 New England wage earners and paid somewhat over $9,000,000 in wages. Planing-mill activities contributed to the New England revenue almost as much as the rough-lumber production but employed only a little more than one-half as many wage earners. The planing mills added $15,666,000 to the region's manufacturing revenue, repre- senting in 1927 slightly less than one-fifth of the total for all wood activities. This industry uses some native materials, but it depends largely upon lumber shipped in from outside sources. Massachusetts, the leading State in this activity, contributed almost one-half of the New England total; Massachusetts and Connecticut make up about two-thirds of the total for the whole region. The making of wooden packing boxes in 1927 contributed a little less than 10 per cent of the revenue from all the wood industries, providing an income of $7,867,000 and engaging the activities of 4,152 wage earners, who were paid $4,456,000 in wages. This activity has its principal importance in Massachusetts and New Hampshire, these two States together comprising about six-sevenths of the total New England revenue from box manufacture. Cooperage manufac- ture, while of minor importance, contributed upward of $1,500,000 to the region's income, with a product approaching $4,000,000 in gross value. In addition to the primary wood manufactures included in lum- ber, planing-mill products, and boxes, the more highly fabricated lines represented by furniture and kindred manufactures and by turned wood and woodenware, represent substantial sources of income to the people of New England, comprising slightly more than one-half of that derived from all the wood industries. This group contributed about $41,500,000 to the manufacturing income, engaged the activities of 17,665 wage earners, paid nearly $22,000,000 in wages, consumed materials which cost nearly $32,000,000, and turned out products with an aggregate value exceeding $73,000,000. In the finished manufactures, including furniture and other articles which undergo parallel manufacturing processes, such as caskets, window screens, refrigerators, picture frames, and pool tables, wood is an important constituent, although various other materials are included. In 1927 this group contributed 36 per cent of the revenue from all the wood industries of New England, contributed upward of $30,500,000 to the manufacturing income, and engaged the activities of more than 12.000 wage earners who were paid upward of $16,000,000 in wages. Its products had a gross value exceeding $55,000,000. The principal furniture-producing sections of New England are in Northern Massachusetts and southern New Hampshire. WOOD M \ N I ' KACTURES 485 The making of turned products, lasts, and woodenware is also important, contributing nearly $11,000,000 to the manufacturing revenue of New England and making products in 1927 worth upward of $18,000,000. Plants in this line are of particular importance in the State of Maine and in other parts of northern New England, as well as in Massachusetts. WOOD INDUSTRIES OF INDIVIDUAL STATES Discussion of the leading items in the wood industries is pre- sented in the pages which follow. Statistics are presented to show the importance of each line in the various States. The aggregate activity of the principal wood-using industries in each State is shown for 1927 and 1925 in the next table. Principal Wood Industries * of Each State, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars 'i : Per cent of New England total value added State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 556 608 307 374 267 301 206 224 170 194 51 43 15, 135 16, 071 7,104 8,975 5,448 6,219 4,137 4,609 2,524 2,565 938 727 20, 375 20, 734 6,790 8,169 5,939 6,515 4,100 4,244 3,602 3,465 1,172 1,072 32, 813 36, 140 10, 361 14, 535 13,412 13, 981 5, 485 6,651 5,134 6,034 2,109 1,838 70, 890 74, 266 23, 107 28,320 23, 662 25, 350 13 044 14, 640 12, 330 12, 806 4,259 3,723 38, 076 38, 126 12, 747 13, 785 10, 250 11,369 7,559 7,989 7,196 6,772 2,150 1,885 48.8 1925 47.7 Maine: 1927 16.4 1925 17.2 New Hampshire: 1927. 13.1 1925 14.2 Vermont: 1927 9.7 1925 10.0 Connecticut: 1927_ 9.2 1925 8.5 Rhode Island: 1927 2.8 1925 2.4 Total: 1927 1,557 1,744 1,879 35, 286 39, 166 40, 956 41, 978 44, 199 47, 489 69, 313 79, 180 85, 293 147, 292 159, 104 175, 043 77, 979 79, 925 89, 750 1925 _ All New England wood indus- tries: 1925 1 Lumber and timber products, planing-mill products, boxes, furniture wood turning, and lasts. LEADING WOOD PRODUCTS LUMBER AND TIMBER PRODUCTION The production of timber products resulting from logging-camp and sawmill activities and including (in addition to lumber) lath, shingles, cooperage stock, excelsior, veneer, small-dimension stock, telephone poles, and railroad ties, is prevailingly a business of small- scale operations in New England. A great deal of this activity is carried on by portable sawmills. The business is distinctly seasonal, many producers operating their mills only a few months in the year and supplementing mill activities with logging and other work con- nected with lumbering. The declining local supply of timber suit- 61232°— 30 32 486 INDUSTRIAL STRUCTURE OF NEW KXOLAND able for the general lumber market, in consequence of cut-over stocks, remoteness from transportation, and the wide scattering of the re- maining timber in small quantities, together with keen competition from the Pacific coast, the South, Canada, and recently from central and northern Europe, have driven New England lumber out of the large markets. Production is mainly to meet the requirements of local or near-by markets afforded by other wood industries. The im- portance of lumber and timber activities in each State in 1927 and 1925 is shown in the following table, with comparative New England totals for 1914 and 1904. Lumber and Timber Production in New England States Estab- lish- ments Wage earners Thousands of dollars Per cent State and year Wages Cost of materials Value of products Value added by manu- facture of New England total value added Maine: 1927 185 238 165 207 127 151 79 120 56 65 9 5 3,898 5,338 2,306 3,289 1,652 2,214 853 1,211 466 385 57 50 3,614 4,748 2,500 3,376 1, 534 1,878 909 1,261 521 379 49 60 4,291 7,597 6,140 6, 915 1,634 2,580 1,904 2,726 402 434 46 77 10, 664 15, 371 10, 078 12, 622 4,552 6,140 3,928 5,183 1,357 1,184 136 163 6,373 7,774 3,938 5, 708 2,918 3,561 2,024 2,457 955 750 91 85 39 1 1925 38 2 New Hampshire: 1927 24 2 1925__. 28 1 Vermont: 1927 17 9 1925 17 5 Massachusetts: 1927 12 4 1925 12.1 Connecticut: 1927 5 8 1925 3 7 Rhode Island: 1927 6 1925 4 Total: 1927 621 786 2,210 1,988 8.54 9,232 12, 487 23, 154 24,047 2.63 9,126 11, 702 12,400 10, 807 2.56 14, 417 20, 329 19, 592 15, 113 3.51 30, 716 40, 663 45, 205 38, 212 2.86 16, 299 20, 334 25, 613 23, 099 2.42 1925 1914 1904 New England as per cent of United States: 1925_ CONDITIONS IN THE INDUSTRY Nvmiber and size of establishments. — Replies regarding condi- tions in this line during the last few years were received from 83 concerns engaged in rough-lumber production, of which 57 w T ere complete enough for analysis. Of this number 47 companies re- ported their principal product to be rough lumber, and their aggre- gate volume of sale in 1925 was $2,279,000. There were five con- cerns reporting the making of heading and staves for cooperage stock, with an average individual production of $36,200. Four manufacturers of excelsior were included, their average individual sales being $35,750 per plant. Only one company reported shingles as its principal product. The prevailing small scale of lumbering operations in New England is thus apparent. Of the 47 reporting producers of rough lumber, 31 were located in Maine. 13 in Vermont, and 3 in New Hampshire. The size range among individual plants was as follows: Sixteen companies reported WOOD MANUFACTURES . 487 individual sales of less than $10,000 in 1925; 6 between $10,000 and $25,000; 7 between $25,000 and $50,000; 13 between $50,000 and $100,000; and 5 between $100,000 and $300,000. The aggregate sales of 31 plants in Maine, amounting in 1925 to $1,682,000, showed an increase of 23 per cent compared with L923; while L3 plants in Vermont, with aggregate sales of $422,000, showed a net increase over 1923 of 3.4 per cent. The five producers of cooperage stock, whose aggregate 1925 volume was only $181,000. showed an increase over business in 1923 of 66 per cent. One manufacturer of laths and shingles showed an increase in sales in 1925 of 50 per cent over 1923. The aggregate sales volume of 33 lumber companies, each of which was less than $50,000, showed an increase in 1925 of 2.3 per cent over the 1923 volume; 16 of the plants showed individual decreases in sales, while 8 increased and 9 had no change. Twelve concerns, whose individual sales ranged in size from $50,000 to $100,000 in 1925, showed a decrease from 1923 of 12.3 per cent; 5 others showed individual increases, while 6 decreased, and 1 in- dicated no change. Sales of the 7 largest reporting plants, whose operations ranged between $100,000 and $300,000, and whose aggre- gate sales in 1925 totaled $1,268,000, showed an increase from 1923 of 22.1 per cent; 5 of these large companies showed individual increases, while the other 2 had a falling off in sales. On the basis of 1925 capacity, 4 companies reported operating at 100 per cent ; 4 others between 80 and 95 per cent ; 23 others between 50 and 80 per cent; while there were 14 concerns operating at less than one-half their capacity, of which 10 were running at 25 per cent or below. Regarding seasonal employment, 22 concerns stated that their normal period of production was from 2 to 6 months of the year, 22 others reported activities extending from 7 to 9 months, 4 concerns reported activities 10 months of the year, and 4 others stated that they had year-round activity. Distribution of markets. — Thirty-eight companies stated that their entire sales were made within New England. Of these, 22 were located in Maine, 14 in Vermont, and 2 in New Hamp- shire. Fifteen other companies reported that they sold upward of one-half of their product in New England, while 3 others stated that New England sales were one-fourth or less of their output. Of the total number reporting, 23 concerns stated that their sales in the New England market were decreasing, while 14 reported an increase in New England sales. The principal reasons given for de- clining sales in New T England were the competition from outside sources and changes in local demand. Labor costs were also empha- sized in many instances, while quite a number attributed a falling off in business to overproduction. Of the companies reporting sales increases several mentioned the development of new products and the extension of selling territory. Reduction of manufacturing costs was reported by 5 companies, and the application of new sales methods by 2 concerns. Marketing methods. — The majority of these companies report di- rect sales to the consumer or user, either wholly or in conjunction with other outlets. Eleven companies stated that they market their entire product in this way; 26 concerns reported the employment of 488 INDUSTRIAL STRUCTURE OF NEW ENGLAND selling agents and 7 depend upon these exclusively ; 25 others reported sales of all or a portion of the production through wholesale dealers. National advertising mediums were indicated in 4 instances and local mediums in 8 others. Direct mail and newspapers are most frequently used. The attitude of New England manufacturers of lumber is well indicated by some of the individual comments. A large Vermont producer states: "Pacific coast lumber is laid down in Boston cheaper than we can lay it down by rail. Labor conditions and high freight rates absorb practically all that we can get out of lumber. Southern lumber is also a very strong competitor. A New Hampshire lumberman states : " Lumber from Idaho and the Pacific coast is coming to New England at prices that prevent the sale of New Hampshire pine at even a fair price." This man, whose business has been on the increase during the last few years, credits the increase to long-time contracts and to new methods of sale. A manufacturer in eastern Maine states : " Increased com- petition from the west coast and Canada has limited us to low-cost hauls." Another large producer of spruce and pine lumber states that the low price of Pacific coast lumber has forced Maine spruce lumber out of the metropolitan district and other Atlantic coast points. On the other hand, one New Hampshire lumberman reports that he has kept up his volume of business by adding the construction of apple boxes and of tanks during the slack season of the year. An- other substantial New Hampshire manufacturer of hardwood head- ing and hardwood lumber, w T hose sales are made through wholesale houses, credits increased sales to " activity and sales advertising." A Maine producer whose business has shown a substantial increase credits this to the standardization of products, stating, " We have never lost a customer after securing him. We always deliver the same quality of product that we describe and fill orders promptly." This concern advertises wholly by direct mail. Another medium- sized producer of lumber and spool stock in Maine credits the maintenance of sales volume to the satisfaction of customers result- ing from his efforts to maintain uniform grades in the lumber sold. A medium-sized concern, also in Maine, whose sales volume has been practically uniform since 1921, states that the decrease in its production of manufactured native lumber has been offset by an increase in secondary products, such as cedar posts, poles, and ties. THE LUMBER MARKET OF NEW ENGLAND Note. — The section entitled "The Lumber Market of New England" (pp. 489-496) was prepared by Edwin Bates of the Domestic Commerce Division. During the past three decades New England has become more and more dependent upon outside sources for its supply of building lum- ber. Previous to 1890 requirements were met mainly from local production, but the reduction of timber areas in these States, the demands of the paper and pulp industry, and the consequent decrease in lumber production have opened up a market for producers in eastern Canada, in the southern and western parts of the United States, and in British Columbia. WOOD MANUFACTURES 489 In analyzing the New England market one of the chief difficulties arises from inability to break up statistical data to distinguish be- tween lumber for construction purposes and material for the wood- working industries. Statistical reports of the transportation agencies do not differentiate sufficiently among the several types of forest products to throw light upon the extent of building requirements, compared with the demand for box material or for other wood-using industries. In the present study it is necessary, therefore,' to deal only with the general movement of lumber into New England, and with the more outstanding developments in its distribution. Certain major changes of recent years which are well recognized by the trade are also set forth. SOURCES OF NEW ENGLAND LUMBER The chief present sources of softwood building lumber for New England consumption, aside from the local and Canadian supplies of pine and spruce, are the southern pine districts and the Pacific coast of the United States and Canada. Hardwoods for flooring, interior finish, and doors come from the Lake States, southern Appa- lachian territory, and the Southern and Gulf States. The figures in the following table, covering shipments of lumber in 1924 and 1926, as published by the United States Forest Service with the cooperation of the Bureau of the Census, shed considerable light on the present general lumber movement into New England. The figures are not final, however, as they presumably cover only first billings of shipments and do not account for rebilling from large primary markets in the East to points of final destination in New England. Southern pine has in recent years been losing its position in the New England market, largely as a result of the increased shipments of Pacific coast lumber through the Panama Canal. "This shift has been particularly true in the class known as structural tim- bers, which are used largely in the construction of trestles, bridges, and factory buildings where strength is the main essential. A simi- lar shift has taken place in general building lumber. These changes have come about largely because of a lower delivered price on the Pacific coast product. Maine and Vermont are the two New England States which possess a surplus of available timber. Although the producers of spruce lumber in Maine naturally look upon New England as a home mar- ket, they have more and more found themselves at a disadvantage in selling against Pacific coast competition. On one hand, the pro- ducer of spruce lumber has to compete with the pulp producer, be- cause the price of spruce stumpage is governed largely by the demand for pulpwood; on the other hand, he must face competition in the price at which the Pacific coast producer can deliver lumber by water in the metropolitan centers, such as Boston and Providence. Transportation costs are an important factor in the competition of the Maine producer, who is almost entirely dependent upon rail shipment. The Pacific coast producer, whose timber is located near tidewater, with the all-water route from Pacific coast ports to New England, is in a more favorable position. 490 INDUSTRIAL STRUCTURE OF NEW ENGLAND Domestic Shipments of Softwood and Hardwood Lumber into New England States, by Region of Origin, 1924 and 1926 [To first destinations only : Redistribution not shown. Thousand feet, board i. e., 000 omitted] measure, Region and year Connecti- cut Maine Massa- chusetts New Hamp- shire Rhode Island Vermont New England total Northeastern: > 1926__ 77, 887 86, 436 1,042 1,360 2,912 9,680 28, 956 47, 124 46, 322 68, 507 62, 885 46, 690 4,903 5,197 20, 259 27, 245 33 138, 628 177, 928 195 46 1,203 493 2,976 7,105 14, 496 22, 270 8,633 9,379 1,499 762 615 664 163 240 274, 346 325, 560 5,007 4,940 20, 665 25, 702 79, 028 88, 549 159, 061 207, 797 135, 934 85, 886 14, 941 11,792 20, 931 26, 770 122 162, 569 140, 798 501 24 489 1,380 1,404 5,666 13, 143 18,247 9,213 4,862 2,555 2,163 3,124 2,418 21, 970 21, 515 131 63 2,674 2,712 5,340 6,418 37, 417 41, 599 59,590 18, 370 1,584 1,336 1,266 3,639 72,740 77,820 238 71 823 1, 039 1,024 890 9,655 12, 037 11, 052 6,916 516 889 551 1,243 748, 140 830, 057 7, 114 1924 Lake: 1926 1924 6,504 28,766 41,006 118,728 Central: 1926 1924 North Carolina pine: 1926 1924 155, 752 Southern pine: 1926 280, 094 1924 370, 457 287, 307 172, 103 Pacific (north): 1926 1924 Pacific (south): 1926 25, 998 1924 . 22, 139 Rocky Mountain (north): 1926 46,746 1924 61, 979 318 Rocky Mountain (south): 1926- 1924___ 240 Prairie: 1926_ 238 101 239 324 239 716 1924_ ._ 425 Total, all regions: i 1926. 245, 437 292, 340 168, 408 218, 887 710, 274 777, 320 192, 998 175, 558 130, 211 95, 652 96, 599 100, 905 1, 543, 927 1924. 1, 660, 662 i Includes intrastate distribution— i. e., the quantity of lumber sawed and distributed within each State of New England. IMPORTS OF LUMBER The New England States are heavy buyers of Canadian lumber for construction purposes. Relatively small imports are recorded from northern Europe. During the years 1924 to 1926, inclusive, the New England market imported annually an average of around 520,000,000 board feet of softwood lumber. While much of this material was used in construction, a certain percentage was consumed in the manufacture of boxes and crates. Statistics show that the bulk of the imports was entered in the Maine, New Hampshire, and Vermont customs districts. It is doubtful, however, whether much of the consumption actually took place in these northern States, as the demands for construction material are concentrated largely in the southern New England district. These purchases, being mainly from Canada, were entered at customs offices on the Canadian border, and most of the shipments were probably destined to points in southern New England. Imports of lath and shingles from Canada into the New England States average annually over 400,000,000 of each. No imports of these froni other countries are shown in the records of the customs districts. Imports of lath and shingles from Canada exceed con- siderably the local New England production, as indicated by reports of lumber producers to the Bureau of the Census. WOOD MANUFACTURES 491 The production of lath reported in (he six New England States in 1926 totaled 169,751,000 and that of shingles was only 61,548,000, both confined almost entirely to the State of Maine. Figures of receipts of lath and shingles from other sections of the United States are not available. The annual imports of softwood lumber and of lath and shingles from 1924 to 1927, inclusive, into each of the five customs districts comprising the New England States, are shown in the following table. Imports of Softwood Lumber,, Laths, Shingles, and Railroad Ties Into New England Customs Districts, 1924-1927 Item and year Maine and New Hampshire Vermont Massachu- setts Rhode Island Connecti- cut Total Boards, planks, deals, etc., of softwood (thousand feet) : 1927 175, 064 184, 100 204, 079 222, 946 178, 527 205, 946 226, 868 179, 617 91, 727 114, 544 85, 465 68, 508 18,060 4,718 12, 672 15,098 17,706 12, 959 10, 981 11,387 481 084 1926 522, 267 540, 065 497 556 1925 __ 1924.. 4-year total— 786, 189 790, 958 360, 244 50, 548 S3 023 2, 040, 972 Laths (thousand): 1927 210, 371 256, 821 313, 684 334, 609 108, 394 131, 519 113, 352 119, 076 8,229 7,062 9,340 6,850 1,800 2,667 148 1,591 6,797 6,947 3,637 1,995 335, 591 405, 016 440 161 1926... 1925 1924 464, 121 4- year total... 1, 115, 485 472, 341 31, 481 6,206 19, 376 1, 644, 889 Shingles (thousand): 1927 133, 294 134, 218 101, 120 107, 963 181, 122 228, 146 266, 164 290, 947 1,359 8,228 16, 440 10, 495 9,138 2,535 16, 776 27, 267 760 2,530 1,000 400 325, 673 1926 375, 657 1925 401, 500 1924 437, 072 4-year total __ 476, 595 966, 379 36, 522 55, 716 4,690 1, 539, 902 Railroad ties: 1927 208, 623 118, 486 55, 420 158,711 205, 365 403, 630 427, 627 315,851 120, 030 88, 994 24,442 3,980 0) 0) 0) 0) 0) 0) 0) 0) 534, 018 1926 611, 110 1925 507, 489 1924 478, 542 4-year total. _ __ ... 541, 240 1, 352. 473 237, 446 2, 131, 159 r~ 1 Not given. seasonality of shipments There is no trade organization in New England at present collect- ing statistics on the combined receipts of lumber by water and by rail at any of the consuming markets. In the past the Boston Chamber of Commerce, and later the Boston Flour and Grain Exchange, col- lected such statistics for Boston, but figures have not been compiled since the latter part of 1924. The large number of terminals scat- tered throughout the Boston port area makes it difficult to collect complete statistics on lumber receipts. Figures of monthly receipts for the years 1922 and 1923 are reproduced below, indicating the seasonality of recorded receipts in these two years. Figures of water receipts of lumber at certain New England ports from ports on the Pacific coast, as published by the United States Shipping Board, are reproduced in the second table. 492 INDUSTRIAL STRUCTURE OF NEW ENGLAND Total Monthly Lumber Receipts at Boston, 1022 and 1923 [Report of the Boston Flour and Grain Exchange] Month 1922 1923 Month 1922 1923 January Board feet 7, 383, 551 8, 125, 154 16, 705, 765 17, 765, 713 16, 380, 128 10, 630, 835 14, 792, 500 Board feet 18, 843, 254 7, 543, 898 15, 060, 559 17, 877, 015 22, 937, 419 23, 512, 102 28, 780, 820 August.. . Board feet 18, 355, 326 11,884,104 15, 422, 657 11,618,748 14, 534, 474 Board fed 21, 130, 582 24, 771, 190 February... September . . . March ._ October .. 24, 942, 871 18, 942, m 13, 612, 276 April... . November May . December. Total July 163, 598, 955 237, 954, 654 Receipts of Pacific Coast Lumber at New England Ports, Years Ended June 30, 1925 to 1928 [Based on reports of the U. S. Shipping Board; all figures in cargo tons of 2,240 pounds] New England ports From Cali- fornia ports From Ore- gon ports From Washington ports Total Portland, Me.: 1928 0) 0) 265 338 542 2,090 991 957 542 2,090 1,256 1,295 1,789 1,858 495 110 59, 534 26, 609 28, 223 15,424 24,077 22, 332 33, 308 27,459 0) 0) 0) 0) 4,498 3,603 885 7,178 24, 077 0) 0) M 113,975 54, 402 62,911 50, 171 7,955 1,747 1,730 896 140, 735 124, 900 116,927 85, 063 52, 796 32, 557 66, 104 51, 990 57, 132 51, 303 31, 125 0) 1,610 40 1,414 4,586 52, 796 2,317 0) (') 313, 024 212, 864 217, 300 142, 535 9,744 1927 3,605 1926 2,490 1925 1,344 Boston, Mass.: 1928 200, 811 1927 153, 599 1926 : 146, 141 1925 _ 101, 444 Providence, R. I.: 1928 76, 873 1927 .. 54,889 1926 99,412 1925 79, 449 Portsmouth, R. I.: 1928 57, 132 1927 51, 303 1926 31, 125 1925 (0 New London, Conn.: 1928 - _- 6,108 1927 3,643 1926 2,299 1925 -- 11, 764 New Bedford, Mass.: 1928 . -- 76, 873 1927 2,317 1926 0) 1925 0) TotaL 1928 . 427, 541 1927 269, 356 1926. ..- 281,467 1925 194, 001 i Not given. recent changes in lumber trade The New England lumber market is being supplied more and more by seasoned and dressed lumber. Since rail rates on lumber are based upon weight, while sales are based upon the number of board feet, the reduction in weight from seasoning constitutes a saving of from 15 to 25 per cent in the rail freight bill. This fact has bad a direct bearing upon the place of kiln drying for the New England market. A further reduction in weight is made by sur- facing the lumber before shipment. WOOD MAXI'I'ACTURES 493 SASH, DOORS, AND INTERIOR TRIM New England producers of sash, doors, and interior trim in recent years have found increasing difficulty in maintaining their position in the loeal market. The principal handicap of the New England producer arises from the fad that with these products the economical grades for cutting are much more efficiently utilized when worked near the lumber-producing sections. Increased freight rates in re- cent years have increased the production of this class of work nearer the lumber-producing centers, as is shown by the growth of the millwork business in the Middle West, South, and West. The New England market is now supplied with doors and interior trim largely from these regions. Pacific coast doors have been sold in the New England market for a number of years. A marked increase, how- ever, is reported by the trade within the past 5 or 10 years. FLOORING Flooring constitutes one of the principal uses for hardwood lumber in building construction. Maple and oak are the important kinds of wood used for this purpose. The supplies come largely from producing territory in the Lake States, Middle West, and Southern States. Maple, southern pine, and oak have been strong competitors in the New England market. In very recent years southern pine and oak flooring have sold at practically the same price. Under such a condition buyers have been inclined to favor the oak flooring. Companies which handle maple flooring generally also handle maple for use in the wooden-heel and other industries throughout the New England States. The manufacture of flooring has shifted more and more to the producing regions, and NeAv England planing mills have made up less and less of the finished flooring used in these States. RAILROAD TIES Conservative estimates by the trade place the consumption of rail- road ties in New England at 3,000,000 annually. Local production of ties is declining, particularly in the southern part of the region. The southern-pine tie has a large part of the market, especially on the southern New England lines. Import statistics show that New England holds first place among United States consumers of imported railroad ties. New England Imports of Railroad Ties, 1924-1927 Year Number Value Per cent of United States total 1924 478, 542 507, 489 611,110 534, 018 $396, 850 448,000 623, 910 495, 450 46 1925 44 1926 49 1927 49 Practically all the ties imported into the New England States are from Canada. They are used principally by the Canadian lines which enter the New England States and by American railways ex- tending into Canada. 494 INDUSTRIAL STRUCTURE OF NKW ENGLAND MERCHANDISING OF LUMBER Lumber merchandising is in the hands of commission dealers, wholesalers, and retail merchants. The commission dealer in the New England lumber trade is now engaged largely in the handling of Pacific coast lumber. In arranging for a shipment of Pacific coast lumber the commission dealer undertakes to pay transportation charges and cost of handling at the terminal market and makes sales on a commission basis. He expects to make sales previous to the arrival of the cargo with the understanding that the lumber will be accepted by the buyer at ship's side. Facilities for the storage of lumber by wholesalers at the principal consuming centers of New England have heretofore been limited, particularly at Boston. In recent years the facilities for storage at Boston have been considerably increased by the construction of a special lumber terminal at Charlestown. There has been an im- portant lumber terminal at Harbor Junction, Providence, for several years. Another lumber terminal w r as recently constructed at Ports- mouth, E. L, which is so situated as to be a base for supplying much of the trade of southern New England. There are a number of wholesale lumber companies with sales offices in Boston which maintain no stocks in that market but ship entirely on orders received from contractors and retail yards. The rental of desirable space on rail or water sidings, together with the cost of trucking from warehouse to point of use, increases the cost of handling very materially. Some wholesalers avoid the storage charges incident to carrying stocks, also the expense of kiln-drying, by buying only seasoned and finished lumber and shipping it to market entirely upon order. Improved transportation services have been another factor in this plan of merchandising. In a hearing before the Interstate Commerce Commission in 1926 a large wholesale firm with storage facilities at Providence and Poughkeepsie stated that 63.5 per cent of its lumber receipts at these ports went direct from ship's side to railway cars for shipment to interior points, and that only 36.5 per cent went into storage. The retail demand for lumber throughout New England is supplied almost entirely by local retail yards. The chain lumber yard has had a limited development, and, so far as can be learned, only two or three chains are now in operation. Apparently the principal diffi- culty in establishing a chain of lumber yards has been the consumer preference for the local retail lumberman who has had a business established for a number of years. The selling of lumber by mail order to small consumers was not observed to be of great consequence in New England. Ready-cut houses have been limited in sale mainly to use as summer homes at vacation resorts. The lack of fundamental marketing information is a condition deplored by the lumber trade generally. There is apparently no information available at any of the principal consuming markets with reference to the anticipated receipts or demands for lumber at future periods. So far as can be learned, no systematic effort is made to obtain data relative to shipments of lumber to New England. As a result, prices have been made largely in ignorance of the stocks available for sale at the time when delivery is expected. WOOD MANUFACTURES 495 This lack of information on the future course of market supply is rather definitely reflected in the price situation existing in the retail trade. During 1926 one of the lumber-trade organizations in Boston made a study of prices existing at the same time on definitely stated grades of lumber at different retail yards in the metropolitan area. The results of that study indicated that for a similar grade of lumber of the same dimensions and in equal quantities prices varied as widely as 15 to 30 per cent in different yards. In the past the lack of storage facilities at such points as Boston has necessitated the immediate sale of cargoes remaining unsold upon arrival. The result was that a great deal of " distress lumber " was placed upon the market, and a buyer's market resulted — a condition that might obtain at almost any time. The development of storage space at the lumber terminals has operated to offset this situation to some degree. The commission receiver, however, is interested largely in immediate sale, and hence there is a tendency to make sales at such prices as can be immediately secured. The influence of storage facilities upon prices is a matter of direct interest to the retail lumber trade. In so far as storage facilities reduce the uncertainties of price making, the retail trade is definitely benefited. Retailers, however, commonly criticize the establishment of large wholesale yards, in so far as they promote the trade of the small retailer who secures orders with the expectation of filling them directly from the wholesalers' stock, thus avoiding to a large degree the risks from price declines. Retailers who carry regular stocks feel that they deserve protection from the small retailer who uses the wholesale yards as a base of supply. DISTRIBUTION OF LUMBER FROM PORT CITIES The port cities of New England, enjoying the advantage of loca- tion at tidewater and consequent low transportation rates, serve as bases for the distribution of lumber to interior points. Boston and Providence have an unmistakable place as distributing centers for much of New England. New York also serves for the lower Connec- ticut section. Smaller port cities, such as New Haven, New London, Fall River, New Bedford, Portsmouth, N. H., and Portland, receive cargoes of Pacific coast lumber, which satisfy not only their local requirements but are in turn distributed by rail and highway to interior points. Within the last few years a new lumber terminal has been con- structed at Portsmouth, R. I., about 30 miles south of Providence, intended as a base of trade for a wide section of Massachusetts, Rhode Island, and Connecticut. Another center of importance to the New England lumber trade is Poughkeepsie, in New York State, which also has the advantages of location on navigable water. At Poughkeepsie a large lumber distributor has yards, from which orders are filled for points in western Massachusetts and Connecticut. In recent hearings before the Interstate Commerce Commission officials of the New Haven Railroad presented the following figures on shipments from Harbor Junction Wharf (at Providence), Pough- keepsie, and Boston, to points on the New Haven & Central Railroad of New England, the Boston & Albany, and the Boston & Maine 496 INDUSTRIAL STRUCTURE OF NEW ENGLAND Railway. This information was obtained previous to the opening of the Portsmouth terminal. These figures indicate the increasing importance of Poughkeepsie and Providence in lumber distribution. Allowance in all cases must be made for the uncertain volume of truck-borne shipments. From all the ports of New England there is considerable shipment of lumber by highway. In the hearings referred to, the general freight agent of the New Haven estimated that 1,400 cars of lumber were trucked from Providence to outlying points each year. This was estimated to be 70 per cent of the rail movement from this point. Annual Lumber Shipments to Points on the New Haven, the Central Railroad of New England, the Boston & Albany, and the Boston & Maine Railroad, 1921-1925 Shipped from — Cars Net tons Shipped from— Cars Net tons Harbor Junction (Providence): 1921 22 163 849 1,422 2,281 374 144 859 442 3,654 21, 839 34, 408 53, 248 8,107 3,243 18, 913 Poughkeepsie— Continued. 1924 697 860 392 400 1,229 2,798 3,755 16, 871 1922 1925 20, 261 1923 1924 Boston: 1921 _ 7, 107 1925 _ 1922 __ 7,753 Poughkeepsie: 1923 26, 580 1921 1924 __ . 57, 899 1922 1925 76, 745 1923 LUMBER STANDARDS The diversity of lumber standards has constituted one of the serious problems in lumber merchandising, not only in New England but throughout the entire country. The uncertainties imposed upon the trade by varying specifications has been a subject of serious study by the Department of Commerce in cooperation with the lumber trade. Through conferences between the department and producers and distributors throughout the country, a series of specifications known as the American lumber standards has been developed, and these standards have been adopted by a substantial number of prominent lumber manufacturers throughout the country. 1 The New England lumber trade, in harmony with lumber interests throughout the country, has given a favorable response to these standards. Accord- ing to a survey made in February, 1927, 80 per cent of the orders placed with manufacturers by retailers in the northeastern section of the United States were for lumber produced according to the American lumber standards. The report showed a substantial in- crease over that of the corresponding month of the previous year. The sentiment of the lumber trade in New England, as expressed in conference with representatives of the Department of Commerce, is definitely in favor of a program which will eliminate misunder- standing between buyer and seller and thus obviate the cause of numerous disputes and the litigation which has so often followed. 1 Revised Simplified Practice Recommendation No. 1<>, " Lumber." may be obtained from the Superintendenl of Documents, Government Printing Office, Washington, D. C. Price, 15 cents. The department, through Its Bureau of Standards, has also collated all the Important seta of specifications for all wood products wiidi to-day bave more -Mian local application. This is available as Bureau of standards Miscellaneous i'ublication No. 79, " Standards and Specifications in Wood-Usin^ Industries." Price, $1.50. WOOD MANUFACTURES 497 MILLWORK AND PLANING-MILL PRODUCTS The principal activities of millwork plants are the making of sash, doors, window frames, molding, interior finish, architectural woodwork, store fixtures, and general millwork. In addition to these the specialized products include a considerable variety of ar- ticles, such as portable and sectional buildings, office partitions, store counters, w r ood mantels, foundry riddles, refrigerator and furniture stock, hardwood lumber, and flooring. Many of the plants which make these products are operated by concerns engaged in contract building or construction, or in conjunction with a retail lumber busi- ness. A considerable proportion makes products on special orders or under contract. RAW MATERIALS AND FINISHED PRODUCTS The principal material used in this industry is lumber, chiefly of white pine, yellow pine, fir, cypress, spruce, oak, and maple. In northern New England the mills adjacent to native lumber supplies report the use of native white pine, spruce, and maple, but in other sections the mills depend to a very large extent upon lumber that is shipped in from the West and the South. The principal raw materials other than lumber are veneer, glass, paint, glue, and vari- ous kinds of hardware. With the exception of glass, most of these materials are obtained from New England sources. The importance of planing-mill activities in the various States of New England is shown for 1927 and 1925 in the following table, with comparative totals for 1914 and 1904. Substantial reduction is noted in the 2-year interval in each State except New Hampshire, where there was considerable increase. Planing-Mill Products in New England States, 1927 and 1925 Estab- lish- ments Wage earners Thousands of dollars Per cent State and year Wages Cost of materials Value of products Value added by manu- facture England total value added Massachusetts: 1927 147 145 62 76 32 30 36 41 22 24 20 23 2,298 2,628 967 1,247 770 651 499 519 386 429 373 557 3,876 4,211 1,503 1,818 956 725 618 635 573 690 428 541 6,595 8,062 2,489 3,593 1,963 1,862 1,621 1,749 1,136 1,135 1,301 1,841 14, 138 16, 457 5,484 7, 031 3,856 3,299 2,952 3,066 2,227 2,431 2,114 2,854 7,543 8,395 2,994 3.438 1,893 1,437 1,331 1,317 1,091 1,296 813 1,013 48.1 1925 49.7 Connecticut: 1927 19.1 1925 20.3 New Hampshire: 1927 12.1 1925 8.5 Maine: 1927_ . 8.5 1925_ 7.8 Rhode Island: 1927. 7.0 1925 7.7 Vermont: 1927. 5.2 1925__ 6.0 Total: 1927 319 339 464 451 7.12 5,293 6,031 7,343 7,012 5.42 7,953 8,620 4,951 3,903 5.88 15, 105 18, 242 13, 853 10, 806 4.52 30, 772 35, 138 22, 954 18, 469 4.94 15, 666 16, 896 9,101 7,663 5.49 1925 1914 1904 New England as per cent of United States: 1925 498 INDUSTRIAL STRUCTURE OF NEW ENGLAND CHANGES IN SALES SINCE 1921 Replies from 73 concerns engaged in the manufacture of various planing-mill products were analyzed regarding changes in their sales since 1921. The size of business represented by these was as follows:, Number of companies $20,000 to $50,000 29 $50,000 to $100,000 16 $100,000 to $200,000 11 $200,000 to $500,000 _•_ 15 Over $500,000 2 Of these 73 companies there were 45 whose individual sales volume since 1923 showed an increase, while 28 showed a decrease. Most of the individual increases ranged from 2 to 50 per cent; one Massa- chusetts concern making a special product had an increase of 75 per cent and another company an increase of 100 per cent. De- creases since 1923 ranged, in individual cases, from 3 to 40 per cent. As a general rule, the most marked increases in sales were shown by companies making a special product. In numerous instances these companies had added the development of high-grade interior wood- work to their general line of manufacture. Keasons most frequently given for larger sales were the increase in building activity, the adoption of new sales methods, and the extension of selling territory. The pushing of new products, such as portable houses and sectional buildings, and the addition of in- terior finish were credited in several instances with increased busi- ness. On the other hand, some concerns stated there had been a recession in building activity which had caused a falling off in business. Numerous replies referred to the increased competition from other sections of the country, particularly that of finished lumber from the Western and Southern States. A number of re- plies referred to the high cost of labor and of materials as a factor which has made them unable to compete with lower-priced products from other parts of the country. The increased use of steel in office buildings and hotels is said by one manufacturer to have cut deeply into the market for architectural woodwork. A mill owner in Ver- mont expressed the need for a market for the poorer grades of lumber and for wood of smaller dimensions. As reported by 68 establishments 41 concerns reported working at full or nearly full capacity in 1925. Of the other 27 there were 23 reporting between 50 and 80 per cent, and 4 below 50 per cent of capacity. METHODS OF MARKETING Practically all the reporting companies stated that they deal directly with the consumers, either wholly or in part. Twenty-two concerns stated that they sell to wholesale dealers and 21 to retailers, while 12 concerns reported the employment of sales agents and 5 others have exclusive distributors handling their products. As most of these manufacturers cater to a local market their advertising is done principally through local mediums in which the newspaper is the principal one used. WOOD MANUFACTURES 499 CHANGES IN VOLUME OF BUSINESS Analysis of the changes in volume of business by establishments of different sizes shows (hat those in the middle rank, ranging in volume of sales between $100,000 and $300,000 showed, in general, a definite increase in business from 1923 to 1925, while both the smaller establishments and the larger establishments showed, in the aggregate, a decrease in this period. In the case of the larger com- panies the decrease may be explained in part by the fact that their figures probably include a considerable portion of lumber retailing. The aggregate sales of 43 plants with individual business below $100.000 'showed a decrease of 3.7 per cent from 1923 to 1925, and the aggregate for 10 large establishments each exceeding $300,000 showed a decrease of 6.8 per cent; but the aggregate for 34 establishments with individual sales between $100,000 and $300,000 showed an in- crease of 6.5 per cent. The activities of millwork establishments differed materially ac- cording to the line of goods manufactured. The increase in business from 1921 to 1925 w T as most consistent with the makers of sash, doors, w T indow T frames, and similar products used in the construc- tion of dwellings. The aggregate sales of 20 companies in this line of business showed an increase from 1921 to 1923 of 39 per cent, and from 1923 to 1925 an increase of about 5 per cent. There were 39 concerns in a group whose product was interior and ex- terior trim, molding, stair work, mantels, and grill work, whose ag- gregate sales increased from 1921 to 1923 by 27 per cent, but showed a slight decrease, less than 2 per cent, in 1925. General millwork, dressed lumber, and hardwood flooring, as represented by 20 com- panies, showed the least increase — 24 per cent — from 1921 to 1923, and the greatest decrease — 6 per cent — in 1925. The manufacturer of mis- cellaneous products, such as office partitions, store fixtures, and sec- tional and portable buildings, as represented by eight companies, had an increase of 32 per cent up to 1923 and a decrease of about 5 per cent in 1925. According to individual States, 6 New Hampshire companies led, with an aggregate increase in business of 19 per cent from 1923 to 1925; while 20 establishments in Connecticut showed an increase of 4 per cent, and the 38 in Massachusetts increased 2 per cent in the same period. On the other hand, the aggregate sales of the 15 es- tablishments reporting from Vermont showed a decrease of about 8 per cent, 7 concerns in Maine fell off 6 per cent, and 1 large estab- lishment in Rhode Island showed a decrease of 15 per cent from 1923 to 1925. WOODEN PACKING BOXES The packing-box industry is based chiefly on native raw ma- terials, of which w T hite pine is the principal wood used. Being tight-knotted stock free from resin, so that it takes printing readily, New England pine finds in this use a market that does not suffer serious , competition from shipped-in lumber. The box indus- try provides an outlet for small and second-growth timber that can not be sawed into lumber for construction purposes. New England timber grows to merchantable size for boxes in about 45 years, while construction lumber requires 65 years to reach maturity. 500 INDUSTRIAL STRUCTURE OF XKW ENGLAND The principal market is within New England and comes from the packing requirements of its manufacturing industries. There is thus a fairly stable and permanent market close at hand. The logical market limits are the New England States, New York State, and Pennsylvania, in which the New York metropolitan area provides an important outlet. CHANGES IN CONSUMPTION This New England industry has suffered severely in recent years from the reduced consumption resulting from substitution of boxes made of fiber, and to some extent of veneer and plywood. The de- cline in the use of pine boxes as containers since the war is estimated by a prominent box manufacturer to have been from 30 to 50 per cent of their previous use. The consumption of lumber for box manufacture in New Hampshire in 1925, however, was approximately the same as in 1912, which indicates that recent estimates of decline are on the basis of war-time consumption. The decline of the last few years has eliminated many small, country box-making shops and has curtailed the production of boxes by other makers of lumber products. The making of wooden packing boxes by establishments specializ- ing in this line represented 9.5 per cent of the total revenue from the New England wood industries in 1927, and the value of the output was 13.6 per cent of the national total. The industry added a little less than $8,000,000 to the region's manufacturing revenue, provided a market for materials exceeding $10,600,000, paid $4,456,000 in wages to 4,152 wage earners, and turned out a product with a gross value of $18,500,000. A survey of the New England wooden-box industry made for the New England Council by the Harvard Forest in 1926, covering 155 box manufacturers, indicated an aggregate capital investment of $10,635,000 in plant and machinery, a consumption of 432,700,000 feet of lumber costing $12,222,000, and aggregate sales in 1925 of $20,591,000. More than 80 per cent of the New England output of wooden packing boxes comes from two States — Massachusetts and New Hampshire. The product of the latter State in 1927 exceeded $6,000,000 in value, while that of Massachusetts was approximately $9,300,000. The industry is also of some importance in Maine, the production of that State exceeding $2,100,000. These three States produce more than 90 per cent of the New England output. The following table gives figures for the individual States for 1927 and 1925, with comparative totals for 1914 and 1904. These figures, how- ever, cover only the specialized establishments, reported in the census, which make boxes for sale as their main product. In addition to these, numerous lumber companies make boxes and shooks as a sec- ondary product, and many manufacturers in other industries buy shooks from lumber mills and make up boxes from purchased ma- terials for their own use. For New England as a whole the figures -how ji genera] falling oil in activity in the last 2-year interval, but in New Hampshire it increased substantially, wool' MANUFACTURES 501 Wooden Packing Boxes I Except Cigar Boxes) in New England States, 1927 and 1925 •Estab- lish- ments Wage earners Thousands of dollars Per cent of New England total value added State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 59 72 25 27 10 15 7 7 6 7 6 2,062 2,428 1,376 1,229 543 673 120 152 51 31 151 2,316 2,689 1,376 1,294 531 606 139 179 94 33 115 5,116 6,245 3,689 3,542 1,298 1,696 329 385 201 236 169 9,307 11,187 6.087 5,768 2,126 2,593 597 618 384 313 313 4,190 4,942 2,398 2,226 828 897 269 233 183 77 144 51 3 1925-- 58.0 New Hampshire: 1927. 30.5 1925 26. 1 Maine: 1927 10.5 1925 10 5 Rhode Island: 1927 3.4 1925 2.7 Connecticut: 1927 2.3 1925_ .9 Vermont: 1925 1.7 Total: 1927 J 107 134 4,152 4,664 5,664 6,179 13.4 4,456 4,916 2,945 2, 756 14.6 10, 634 12, 273 9,132 7,473 14.2 18, 501 20, 792 14, 456 12, 502 13.6 7,867 8,519 5,325 5,029 12.9 1925 1914 2 1904 231 16.3 New England as per cent of United States: 1925 i Not including Vermont. 2 Exclusive of Connecticut, 13 establishments, and Rhode Island, 7. The industry has been overcapitalized, has had too many plants in operation, and has been hampered by wasteful and inefficient selling methods. The market for New England wooden boxes, how- ever, is regarded as a permanent one which, with proper business organization, is capable of being maintained on a profitable basis. While the consensus of opinion among box men is that the industry has in the last few years suffered a severe and permanent setback, yet it is believed that the box industry can be stabilized near its present level, with possible increases through the employment of improved methods of manufacture and distribution, the use of cheaper grades of lumber, and more effective advertising. Stabilization of production and marketing is required to establish this business on a sound and profitable basis. Attempts were made as far back as 1917 to establish a closer coordination among box manufacturers. Recent far-reaching efforts by manufacturers have been made in the line of a careful analysis of the whole industry from the standpoint both of production and of marketing. The competition resulting from overproduction, both actually and relatively, especially among the smaller manufacturers, brought about a situation where selling price was frequently below the actual cost of manufacture. The recent tendency has been toward the elimination of the smaller plants and concentration in large establishments where production can be integrated to reduce wastes and cut down operating costs and to get full value out of the mate- rials. An example of such integration is the recent combination of 61232°— 30- -33 502 INDUSTRIAL STRUCTURE OF NEW ENGLAND a number of plants of two of the largest box-making companies in New England, whose product is claimed to comprise about one- fourth of the entire New England production. From the angle of production the future of this industry depends upon a supply of suitable and accessible timber for box manufac- ture. Foresighted companies that have built up adequate timber reserves are in the most favorable position. Most of the lumber now used for box material is sawed in small lots by portable sawmills. This makes a problem for the small sawmill which must sell its product ungraded. Such material is bought and sorted by the box manufacturers, who sell the best portion as long lumber and use the rest for box material. CHANGES IN SALES VOLUME Information in reply to a special inquiry for this report by the Department of Commerce was received from 45 manufacturers, with aggregate sales in 1925 amounting to upward of $18,000,000, dis- tributed by States as follows: Massachusetts, 25; New Hampshire, 9; Vermont, 4; Maine and Connecticut, 3 each; Rhode Island, 1. Two-thirds of these manufacturers had an annual volume of busi- ness ranging between $100,000 and $500,000. There were 9 smaller concerns, 6 of which had individual sales below $50,000; also 6 establishments above this range, of which 4 exceeded $1,000,000 each. Individual increases in sales from 1921 to 1925 were shown by 21 of the companies, and decreases were shown by 18 companies. Up to 1923 increases were indicated by 25 companies and decreases by 10 companies; in 1924, however, increases were shown by only 9 companies, while 30 showed decreases ; and in 1925 increases over the preceding year were shown by 13 companies, while the individual sales of 28 companies decreased. The trend of aggregate gross sales from 1922 to 1926, in the Harvard Forest survey, showed a very sub- stantial increase in 1923, followed in 1924 by a sharp falling off to below the 1922 total, with a slight improvement in 1925 and further improvement in 1926. The reason most often given for decreased sales is the growth in use of fiber, corrugated paper, and plywood materials as substitutes for wooden boxes. One New Hampshire manufacturer expressed the opinion that the overproduction of wooden containers, resulting from the increased use of these other materials, was at least 100 per cent. He estimated that wooden containers in 1923 comprised 49 per cent of the total used and substitute materials 50 per cent; and that in 1925 wooden containers comprised only 40 per cent, while substitutes had increased to 60 per cent. The business of a few companies showed a continuous growth from 1921 to 1925, which was attributed in individual cases to lowered manufacturing costs and new selling methods. Several con- cerns indicate a change from making wooden boxes to the making of box shooks and veneered boxes from native hardwood logs. Some report a lowering of their manufacturing costs by the use of plywood in place of pine. WOOD MANUFACTURES 503 DISTRIBUTION All the reporting companies indicated that the majority of their sales are made in New England, the average of New England sales being 78.3 per cent of their aggregate total. The prevailing method ^ i*°°\ *** rtfA/HCBCC J . *** ,T0N XiO** 'to£S*irf\ illi ,&>*\, /&;. LOCATION OF ESTABLISHMENTS MAKING FURNITURE IN NEW ENGLAND STATES 1927 DOTS AND FIOUR.E5 SHOW NUMBER IN EACH COUNTY ^* NEW LONDON < *#**, '6AHNSTABI.I: I pl> 44-Z6-+Q Figure 45 of distribution is direct to the consumer. According to the Harvard Forest survey, 90 per cent of the aggregate sales were made through the direct method and 10 per cent through commission men. A few manufacturers reported sales of a portion of the output to wholesale dealers, and one concern through an exclusive distributor. Most of 504 INDUSTRIAL STRUCTURE OF NEW ENGLAND the product sold outside New England is marketed through six or eight brokers in New York City. In most instances the advertising is through local mediums in which newspapers and trade journals are most frequent. FURNITURE Furniture making ranks first in importance among the wood-manu- facturing industries in New England, contributing, in 1927, about 33 per cent of the total revenue for the group, adding 1 more than $27,000,000 to the manufacturing income of the region, and providing a livelihood to more than 11,000 wage earners, who were paid nearly $15,000,000 in wages. The furniture industry provided a market for nearly $22,000,000 worth of materials, and its products had a total gross value exceeding $49,000,000. The New England output in 1925 represented 5.2 per cent of the total national value of furniture products. Furniture manufacture in New England shows a substantial ad- vance in the 2-year interval from 1925 to 1927, with an increase in revenue of upward of $3,000,000 and of more than $1,000,000 in annual wages, while the gross output increased in value by nearly $4,000,000. These increases, however, were confined to Massachusetts and Connecticut, which together represent approximately 80 per cent of the region's activity. The total number of New England establishments increased by 10. A slight falling off is observed in value of output in Vermont and Maine, while New Hampshire was practically unchanged. In Vermont the number of workers showed some increase. In comparison with earlier years the furniture indus- try in New England shows a moderate but steady growth, as is indicated by the census figures for 1914 and 1904. These totals for New England are presented in the following table, together with the data for the individual States in 1927 and 1925. Furniture Manufacture in New England States 1927 and 1925 Estab- lish- ments Wage earners Thousands of dollars Per cent of New England total value added State and year Wages Cost Of materials Value of products Value added by manu- facture Massachusetts: 1927 194 191 29 29 12 11 19 15 12 10 7 7 8,077 7,834 872 729 1,183 1,074 688 674 268 306 96 96 11, 027 10, 172 1,307 1,047 1,319 1,186 797 768 298 323 139 142 16, 682 16, 051 1,787 1,519 1,383 1,323 1,259 1,248 474 481 318 240 36, 796 33,638 4,466 3,669 3,508 3,627 2,647 2,654 1,040 1,112 602 511 20, 114 17, 588 2,679 2,149 2,125 2,304 1,389 1,406 566 630 285 271 74.1 1925 72.2 Connecticut: 1927 9.9 1925 .. 8.8 Vermont: 1927 --- 7.8 1925 9.5 New Hampshire: [©27 _ 5.1 1925 . 5.8 Maine: 1927 2.1 1925 2.6 Rhode [aland: 1927 -- 1.0 1926 1.1 Total: 1927 27?, 268 222 210 8.13 11, 184 10,713 9, 626 8, 74K 5.92 14,887 13,038 6, 860 4, 280 6. 00 21, 902 20, 862 8, 007 6, 681 2.40 49, 060 45, 210 18, 730 14, 451 5.21 27, 157 24, 348 10, 723 7,770 5.03 1926 191 I 1904 New England M pei cent of United Stat 1925 WOOD MANUFACTURES 505 I oc A I JZA TloN OF IMtl si i;y Massachusetts is the principal New England producer, its product in 1927 having a value of approximately $36,800,000 and comprising three-fourths of the New England output. Connecticut and Vermont in 1925 were of approximately equal rank, each comprising about 8 per cent of the total for that year. In 1927, however, the value of the output in Connecticut was considerably greater than that of Vermont, although Vermont employed a greater number of workers. New Hampshire contributed in 1925 about 6 per cent of the New England total. The furniture industry is of minor importance in Maine and in Rhode Island. (See fig. 45.) The industry is localized to a considerable extent in the north cen- tral part of Massachusetts and southern New Hampshire. Gardiner has long been an outstanding center for chair manufacture. The nearby towns of Leominster and Winchendon are large producers of chairs and fiber furniture, while Keene, in New Hampshire, has important factories. The making of office furniture in Cambridge and that of upholstered furniture in Boston hold places of signifi- cance in the New England furniture industry. In a number of towns and cities in New England in the last few years there has been considerable growth in the making of upholstered furniture, the most of which goes into local consumption. MATERIALS USED The principal materials used in furniture manufacture are lumber and hardware. Besides these, there is a considerable market for up- holstering materials, paint, glue, enamel, varnish, lacquer, veneer, leather, and cretonne. The principal woods used are birch, maple, oak, mahogany, and walnut ; individual establishments also use rat- tan, cane, reed, and fiber. Of 90 manufacturers indicating the source of their raw 7 materials, two-thirds stated that the greater portion of their wood is purchased from local sources within New England, while the others obtain it chiefly from outside sections. One of the largest chair manufacturers reported that supplies of birch and maple are obtained chiefly from Vermont and New Hampshire. Red gum and oak come from the South. Purchases of mahogany and other rare woods are made outside New England, or from importing houses in the Boston district. Wood is the principal material used in New England furniture, although reed goods have been important, and in recent years con- siderable quantities of fiber furniture have been made. Relatively little metal furniture is manufactured in New England. Detailed figures for various types of furniture are available only for Massa- chusetts. Furniture for household use comprised about two-thirds of the total production of this State in 1925 ; suites for living room, bedroom, and dining room, 42 per cent; and chairs, benches, and stools, 33 per cent. About one-tenth of this was made of fiber, rattan, reed, and metal, and the rest of wood. After household furniture come products for office or institutional use, comprising one-fourth of the total. The chief items in this class are cabinets, desks, and chairs. The making of baby carriages, cribs, and similar 506 [NDUSTRIAL STRUCTURE OF XKVV ENGLAND articles is also important. Most of the baby carriages for the whole country are made in New England. One difficulty found in the use of New England lumber as furni- ture material arises from the fact that it is sawed in too small quan- tities to afford the selection of different grades in the volume desired by the manufacturer. Hence, he must buy such materials according to log run, which involves loss and waste from inferior material, although this loss is offset by the lower price paid for log-run stock. It is the opinion of men in this industry that local supplies of timber are adequate for present and for future needs. There are abundant hardwood stocks in Maine which can be used for this purpose. In the last few years the use of fiber made from wood pulp has had an extensive development in furniture manufacture, largely sup- planting the cane and reed furniture. Some of this fiber is now made under special patents in New England and some comes from the Middle West. Before the war, which temporarily put an end to the importation of reed and cane, considerable quantities of these mate- rials were used in New England for making furniture, being pur- chased from German concerns which imported the cane from China and split it for use. At present fiber is used almost entirely in place of reed and cane. New England concerns using this material gen- erally make their purchases of wood for frames from local sources. NEW ENGLAND AS A FURNITURE MARKET The importance of New England as a market for furniture is in- dicated by comparison of shipments of new furniture into these States with the corresponding outward shipments. In 1924 the tonnage of new furniture shipped into New England was twice that of the furni- ture shipments from New England to other parts of the country, thus indicating that the section is dependent upon outside sources to the West and South for a large portion of its furniture require- ments. Yet a substantial part of the market for furniture made by New England manufacturers lies outside that region. According to reports from 64 New England companies whose aggregate sales in 1925 were approximately $15,000,000, the portion of their sales made within New England averaged 42 per cent of their total business. Most of these replies indicated that New England sales had been on the increase in recent years. The proportion sold within New England by these companies varied materially with the type of furniture. In the upholstered type, which was highest, the average for 10 companies was 77 per cent ; for 10 makers of reed and fiber furniture and 4 concerns mak- ing colonial types, New England sales were 64 and 63 per cent, re- spectively ; while New England sales of living-room and bedroom furniture by 4 companies averaged 58 per cent of their total business. In contrast to these types, the average of New England sales for 17 chair manufacturers was only 26 per cent, and for 6 makers of office and school furniture 25 per cent of their total 1925 business. A summary of New England sales by manufacturers of different types is: given in the following table. WOOD MANUFACTURES 507 Sales i\ New England sn (M Manufacturers of Furniture en 1925 . /■ Kind of furniture Firms Total sales in 1925 Average percentage sold in New England Upholstered Reed and fiber Colonial Living-room and bedroom Tables, cabinets, etc . Special and custom-made Chairs Commercial and school... Other All types 283, (XX) L35, (MX) 959, (XX) 974,000 171,000 866, (XX) 349, (XX) 952, 000 256, 000 14, 945, 000 77 64 63 58 46 39 26 25 30 42 CONDITIONS IN THE FURNITURE INDUSTRY Size and age of establishments. — Some 90 furniture manufacturers supplied information to the Department of Commerce regarding conditions in the industry. Of these, 81 submitted sales figures aggregating for 1925 nearly $18,000,000, thus representing approxi- mately 40 per cent of the whole industry in New England. These represented the different producing States — 63 reporting from Massachusetts, 7 each from Vermont and Connecticut, 3 from New Hampshire, and 1 from Maine. Most of the establishments were of small or medium size. There were 38 companies with individual sales of less than $100,000, in- cluding 19 plants below $50,000; 34 companies between $100,000 and $500,000; and 9 companies between $500,000 and $2,000,000. The average for the group was $234,000 per establishment. Branch plants were indicated in only a few cases and these were within New England, most of the manufacturers operating on a scale that does not warrant branch expansion. Approximately a quarter of the companies had started business within the preceding six years, and changes of management in that period were reported by nearly as many. The average period of operation for all reporting was 27 years. Sixteen companies had been in continuous operation for 50 years or more, and two of these for more than a century. Individual increases in plant capacity since 1921, ranging from 10 to 100 per cent, were indicated by one-fourth of the reporting companies; and several, principally makers of upholstered furni- ture, reported a doubling or tripling of capacity. A maker of fold- ing chairs had trebled his capacity, and a maker of fiber furniture reported even a greater increase. Operations in proportion to maxi- mum capacity in 1925 ranged, in individual cases, from 60 to 90 per cent, with a weighted average for the group of 71 per cent. In numerous instances manufacturers have added fiber products akin to furniture, and these concerns generally showed a high degree of activity. A large concern making baby carriages and porch furni- ture, which has had a very substantial growth in the last few years, reported operating at 90 per cent of maximum capacity. Operating activity. — Employment figures show fairly regular activity throughout the year, with a slight slacking in employment in 508 INDUSTRIAL STRUCTURE OF NEW ENGLAND the summer months, indicating that seasonal periods of operations have been overcome to a large degree. This is the result, in part, of definite efforts by manufacturers. The variation in employment for the New England furniture industry as a whole, in terms of contrast between the highest month, November, and the lowest month, July, in 1925, w T as 14.4 per cent of the yearly average number of workers employed. Provision of wage incentives was indicated by approxi- mately one-half the reporting companies; in most cases the propor- tion of workers paid on a piecework basis was small, usually from 5 to 15 per cent. The improvements effected in factory operation are principally in the prevention of accidents, the standardization of product and materials, and the control of production. Sales trends. — The sales trends for 73 companies show a general increase in 1925 compared with 1921, and an average increase since 1923 of 10 per cent. There were no pronounced differences according to the size of business, although the greatest proportional number of increases was shown by the larger companies whose individual sales exceeded $300,000. There was pronounced contrast, however, in the different types of furniture. The aggregate sales of 18 chair manu- facturers showed a slight decrease from 1923 to 1925 — less than 1 per cent. Sales of 11 manufacturers of upholstered furniture and of 6 makers of special and custom-made furniture increased by about 30 per cent ; and those of 4 concerns making colonial furniture increased 24 per cent. Distribution methods. — Of the methods of distribution indicated b}^ 78 concerns, about one-half of them place their sole dependence upon one type of outlet, while one-half use more than one. Of 40 companies using a single outlet, 21 reported sales direct to retailers, while 14 reported selling to wholesalers, 4 through selling agents, and 1 direct to the consumer. The most frequent combination of outlets was that of wholesale and retail dealers. Two concerns reported sales through exclusive distributors, and one marketed its product through its own store. The use of trade-marks was indicated in the majority of cases. Regional or local advertising, in which the trade journal and direct mail are of equal importance as mediums, was indicated by about one-half the companies reporting. The average expendi- ture for advertising by these was approximately 2 per cent of their sales, and the average cost of selling, aside from advertising, was 10 per cent. Prospects as viewed by members of the industry. — Interviews with prominent manufacturers of furniture in New England brought out conflicting points of view about the prospects for this industry. The president of a large company expressed his faith in specialized production of colonial styles, Windsor chairs and other articles, in which emphasis is placed on workmanship and quality. In his opinion New England manufacturers have an open market on the Pacific const, where water transport and through-car rates make this an accessible field. He holds that New England can meet other competition on office chairs in the eastern market as far south as the Potomac. The following quotation from a maker of special furniture throws light upon the situation, as seen by some of the furniture manu- facturers : WOOD MANUFACTURES 509 One of the hardest features in this business Is the greater variety <>f styles and the demand for special finishes, which makes ii difficult to put out large quantities of one design, whereby we could keep down production costs and prices. In spite of this we do make 4 fairly large cuttings of the greater number of patterns and then gamble on our ability to sell them afterwards. Manufacturers as a whole are to blame for this situation because productive facilities were expanded so much during the war that competition was in- creased, and a great many factories resorted to the " new pattern " method of meeting competition. Standardization would help to lower costs and at the same time increase profits, but it would be very difficult to set up any standards of patterns and styles in this industry. It requires very little machinery for beginners to make a start in a business of this nature, and these would upset any standardizing that miiiht be arranged among well-equipped factories. The smaller competitors do more harm in the way of creating competition among the trade before they learn their costs than they do in the way of actual deliveries of competing merchandise. A large manufacturer of special fiber products, whose business has shown a continuous increase, describes the company's attitude and sales organization thus : We sell both to the jobber and the retail dealer, most of our product going to five or six important jobbers, who take large quantities of goods. They have their own salesmen calling upon the trade ; we also have a number of salesmen that represent us directly on a salary and commission basis. We have paid more attention to studying our product than to the principles or methods of marketing. By improving the product and devising ways and means of manu- facturing at a lower cost, and making sure that the goods are well made and will give satisfaction, we have established a reputation which, together with a price that will meet competition, has insured steady progress. We are now in our new factory with new and up-to-date equipment, which we feel is essential to the satisfactory advancement and progress of the business. To the best of our knowledge the attitude of our industry in New England is generally the same. WOOD TURNING AND WOODENWARE The manufacture of turned and carved articles from wood and of various other products that are designated in the trade as wooden- ware forms an important New England industry. It depends for its principal raw materials upon native supplies of hardwood — birch, maple, and beech — and, to some extent, upon supplies of pine and spruce. It is thus a distinctly native industry which provides a con- siderable market for New England forest products and also furnishes a manufacturing revenue to the region of some $10,000,000. LEADING PRODUCTS The industry includes two fairly distinct groups of products. The first consists largely of turned articles — such as spools, bobbins and shuttles, small handles, dowels, shoe pegs, tubs, and kits — consumed in the industrial market afforded by other manufacturing activities. In addition to these the making of wooden shoe lasts as an accessory of shoe manufacturing assumes considerable importance, the value of products in Massachusetts alone exceeding $3,000,000 in 1927. The second group, which includes mainly the articles known in the trade as w T oodenware, embraces such products as clothespins, toothpicks, wooden dishes, trays, bowls, rolling pins, skewers, and washbowls. These products are largely articles for direct consumption in a nation-wide market. In the production of turned and carved wood articles, the State of Maine holds first place in the national production. This industry is of considerable importance in each State of northern New England 510 INDUSTRIAL STRUCTURE OF NEW ENGLAND and in Massachusetts. Outside New England the principal States in wood turning are Michigan, Tennessee, Pennsylvania, Ohio, and Illi- nois, in the order given. In the production of items designated here as woodenware, Maine, which leads in New England, is surpassed by New York State and by Michigan. Many of these woodworking plants were started by native New Englanders, who set up their mills in a small way to work up local supplies of timber on family timber holdings. Thus the location of plants has been determined mainly by local supplies of raw materials. The location of spool, toothpick, and shoe-peg factories, in particular, was determined b}^ the local supplies of birch. There are adequate supplies of raw materials for maintaining these industries in the regions where they are now located. Indeed, New England, par- ticularly Maine, has an abundant supply of hardwoods adapted to the making of these products. IMPORTANCE IN INDIVIDUAL STATES The importance of the turned-wood industry and of woodenware in 1927 and 1925 is shown in the following table, with comparative figures for 1914 and 1904, and in a separate table figures for lasts and related products are given. Together there were in these groups in 1925, 288 establishments, which gave employment to some 5,300 workers, had a total value of product approaching $17,500,000, and contributed to the manufacturing revenue of New England not far from $10,000,000 in value added by manufacture. The manufacture of lasts showed material reduction in 1927, but there was substantial increase in the other manufactures of wooden goods, particularly in Maine and Vermont. Turned Wooden Goods and Woodenware in New England States, 1927 and 1925 Estab- lish- ments Wage earners Thousands of dollars Per cent State and year Wages Cost of materials Value of products Vftlue added by manu- facture England total value added Maine: 1927 64 70 48 49 47 33 26 22 17 17 6 1,896 2,139 1,003 1,076 929 613 308 376 168 173 279 1,730 1,867 1,174 1,119 819 524 310 353 178 188 273 2,677 3,012 1,510 1,716 1,168 739 361 414 254 252 281 6,325 6,178 3,547 3,722 2,870 1, 706 994 1,007 638 609 696 3,648 3,166 2,037 2,006 1,702 967 633 593 385 357 415 41.4 1925 44.7 Massachusetts: 1927__ 23.1 1925 28.3 Vermont: 1927 19.3 1925 13.6 New Hampshire: 1927 7.2 1826 8.4 Conned tout: 1927 4.3 ] 925 5.0 Rhode Island: 1927 4.7 Total: 1927 90S 191 273 801 26. 49 4,643 4, :i77 5, i 13 1,988 29. 28 4,484 4,041 2, 580 1,912 27.19 6, 249 6, L33 3, 499 2, 209 24.89 15,070 13,222 7, 695 5, 547 23.73 8,821 7,089 1, L96 3, 338 22.80 1926 i [914 * L904 pei cent of Unit 1926 i i Not including 6 wood-turning establishments in Rhode [sland. J Not Including I wood-turning establishment In Rhode island. i Not Including I wood-turning establishment Is Connecticut. WOOD MANUFACTURES 511 Manufacture of Lasts in Xkw England States, 1 *. > 12 T and 1925 Estab- lish- ments Wage earners Thousands of dollars Per cent of New England total value added State and year Wages Cost of materials Value of products \ alue added by manu- facture Massachusetts: 1927 29 31 3 782 894 85 1,072 1,281 10G 1,006 1,339 92 3, 171 4,076 362 2. 108 2, 737 270 100 1925 ._. 91.0 9.0 Maine and New Hampshire: 1925-. Total: 1925 34 32 23 54.84 979 890 501 48.11 1,387 653 396 46. 05 1,431 591 381 46.93 4,438 1,908 1,207 47.72 3,007 1,317 826 48.10 1914 1 19(H 2 New England as. per cent of United States: 1925 1 Not including Maine, 2 establishments; New Hampshire, 1. 2 Not including Maine, 1 establishment; New Hampshire, 1; and Rhode Island, 1. FACTORS AFFECTING THE INDUSTRY The wood-turning and woodenw T are industries consist prevailingly of small manufacturing plants, many of which have limited capital and inadequate organization for marketing their product. There are, however, some individual establishments of substantial size that are well organized. The woodenware industry, which was formerly largely concentrated in the New England States, is now active in other jmrts of the country, especially in Michigan, Tennessee, Penn- sylvania, and Ohio. The largest clothespin factory now operating in the United States is said to be in West Virginia. In the past few years there has been excessive producing capacity in this industry, partly the result of overexpansion in the war years, particularly by small establishments which incurred considerable outlays for plant and equipment. In the face of this there has been a pronounced decline in consumption, brought about by the develop- ment of rival products. A generation ago the manufacture of gal- vanized-iron pails, tubs, and other articles formerly made of wood was a great blow to the woodenware industry, and more recently the increasing use of pulp for making such articles has greatly limited its field of consumption. The industry has been disturbed by the frequent tendency of owners of timber to go into the manufacture of woodenware without first assuring themselves of a market for their product. The con- sequence has been excessive price competition, which has sometimes forced the market below the cost of production. Manufacturers producing in too small a quantity to bid for a national market have been faced with the necessity of accepting terms offered by jobbers who do not have enough stake in the individual transaction to justify intensive salesmanship. Only the most efficient companies which have direct access to dis- tribution channels have been able to prosper under the competitive conditions of recent years. In the opinion of leading manufacturers the only remedy for small producers appears to be concentration of 512 INDUSTRIAL STEtTCTTJBB OF NEW ENGLAND activity in organizations large enough to justify a national market- ing program. The principal marketing outlet for woodenware at the present time is through the large grocery wholesalers and the chain-store organizations, which provide only a limited market. EXPERIENCES OF MANUFACTURERS Number, size, and age of plants. — Of the 191 makers of turned articles and woodenware in New England in 1925, special informa- tion regarding their production and marketing activities was re- ceived from 126 concerns, thus representing a major portion of these industries. The greater proportion of these consisted of small estab- lishments, although a few reporting were of substantial size. The average period of operation was 25 years, and the average period under present management was 16 years. Changes in management within the last six years were relatively infrequent, being reported by 15 concerns. Branch plants were reported by 11 companies, ail located within New England near local sources of timber. Plant activity. — The degree of plant activity in 1925, as shown by a weighted average of all reporting establishments, was approxi- mately 70 per cent of their full capacity. There was a good deal of variation among individual plants in this respect, a number report- ing operations at full or nearly full capacity, while many were oper- ating at only a small fraction of their possible output. Increases in capacity since 1921 were reported by one-fifth of the group, usually moderate in extent. The employment at different seasons of the year was found to be generally quite uniform, largely as the result of the making of sup- plementary products or the manufacture for stock in otherwise slack periods. Manufacturing practice. — Payment of employees on a piecework basis has had little development in the industry, as only one-fourth of the companies reported any piecework, and the average proportion of employees so paid by these companies was only 18 per cent of their total pay-roll. There were several concerns, however, which reported up to 100 per cent of their workers paid on such an incen- tive basis. The difficulty in establishing equitable standards for piecework and the impracticability of such incentive plans under some conditions doubtless account for this low figure. Yet in this industry, where labor costs comprise an average of 35 per cent of the value of the product, the use of any methods which have a tendency to reduce such costs is important. Improvements in manufacturing practice were indicated in vari- ous instances, of which the following are the most significant: Re- duction of number of items in lines resulting in simplification of production problems; standardization of equipment through use of automatic machines; increased production and sales made possible by lowered costs resulting from rearrangement of machinery; uni- form cost accounting which enables manufacturers to know the exact status of costs every four weeks, thus making it possible to govern sales policies and manufacturing and production schedules accordingly. Marketing practices. — Of the total sales of these 126 companies, upward of one-half was stated to be made within New England, the WOOD MANUFACTURES 513 unweighted average being 53 per cent of the total sales. There was some variation in the different States, the percentages being consid- erably higher in Massachusetts and Rhode Island and Tower in Maine. By one-third of the companies reporting the trend of total sales in the last three years was said to have increased, while one- tourth stated that sales had decreased, and the rest reported that their sales were unchanged. Sales in the New England market were said to be moving upward in the same number of instances as in (hose indicating a downward trend. Individual increases in volume of business are attributed prin- cipally to the marketing of new products and to the extension of sales territory, while the principal reasons given for decreased vol- ume are competition from other sections, together with general overproduction. For example, the market for spools has been much curtailed in recent years by the reduced demand for thread for domestic consumption. Channels of distribution. — These companies reported that distribu- tion is made principally through wholesale houses or direct to the manufacturing consumer. The greater part of goods designated as woodenware, which are articles for final consumption, are marketed through the wholesale dealers and chain-store organizations; while a great deal of the turned- wood product is used by other manufac- turers who make their purchases direct. The use of trade-marks does not appear to be at all prevalent in these lines, only one-fourth of the total number of concerns indicating any such practice. The use of national advertising mediums in the form of direct mail or trade journals was indicated in 23 replies. A greater number indi- cated local advertising, chiefly through newspapers. The average cost of advertising of the companies which gave figures was 1.6 per cent of their total sales. A leading manufacturer of w^oodenware, with an annual business approaching a half million dollars in the manufacture of wooden pails, tubs, and washboards, reports that he has warehouses and local representatives in several large distributing centers of the United States. Most of the product is made and shipped on advance orders, and, wherever possible, shipments are made in carload lots to the warehouses. Some of the other large manufacturers in this line follow a similar plan, but most of them are said to have their own representatives who call directly on the trade. By this practice they avoid price-cutting competition among manufacturers, such as would result from throwing their product on the open market. Changes in demand. — The growth of package candy sales is said to have cut down materially the market for candy pails. New England candy manufacturers use from 50 to 60 carloads of pails a year, amounting to from 18,000 to 20,000 dozen. These are said to be bought entirely from New England manufacturers. Formerly there was a large market for lard tubs, but this has been supplanted to a great extent by the use of old butter tubs, which has thus taken this market from New England manufacturers. The use of wooden fish pails and pickle kits is considered likely to continue, because other materials are affected by brine and acid. Some competition in the market for tubs and pails is afforded by manufacturers on the Pacific coast. There is also near-by competition from New York 514 ENDUSTRIAL STRUCTURE OF NKW ENGLAND State, where one of the largest woodenware manufacturing concerns is located. The export trade is said to be of little importance among wooden- ware manufacturers. One company which recently attempted to develop a foreign market in Great Britain reports that it met with no success. The executive of one of the largest producers of tooth- picks, clothespins, and other woodenware, reports, however, that export sales comprise about 10 per cent of the company's total business. Raw materials. — Most of the New England manufacturers of woodenware are said to buy their supplies of wood locally, generally within a 20-mile radius of the manufacturing plant. One of the leading New England manufacturers obtains most of his material within hauling distance, but a small portion comes by rail, the maxi- mum haul being about 60 miles. This company buys standing timber and cuts the trees, purchasing the land where possible and reforesting it with Norway pine, because of its resistance to the pine-tree blister rust. The natural growth and new planting of such timber, as prac- ticed in recent years, are considered sufficient to keep up the New England supply for the requirements of manufacturers of wooden- ware. STONE AND OTHER MINERAL MANUFACTURES Although the stone industries of New England are overshadowed by other major lines of manufacture in value of output and in num- ber of persons engaged, yet these mineral activities are of outstand- ing importance to a number of producing sections. 1 The raw mate- rials constitute one of the native resources of the region and the products are sold largely outside New England, bringing in a sub- stantial income from other parts of the country. About two-thirds of the gross value of these products represents an income from the manufacturing processes, apart from the cost of materials. A large portion of the money spent in the purchase of materials likewise represents a local source of revenue. Since these industries, in large measure, are carried on independently of other lines of New England manufacture, their market is not greatly affected by general indus- trial conditions. PRINCIPAL PRODUCTS This group of manufactures includes, in addition to the products of stone quarries, which are the principal items, brick, tile, and other clay or refractory products, as well as lime and articles made of concrete. The products of this group had an aggregate value in 1927 exceeding $57,000,000 and contributed $38,366,000 to the manu- facturing revenue of New England, as shown by value added by the manufacturing processes above the cost of materials. These in- dustries gave employment to an aggregate of 14,116 wage earners and paid more than $22,000,000 in wages. Materials used in manu- facture, including fuel, power, and supplies, provided an aggregate market exceeding $19,000,000. The importance of the manufactures in this group for New England as a whole is shown for 1927 and 1925 in the following summary table. Stone and Earth Industries in New England, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Granite, marble, slate, and stone work: 1927 487 512 86 81 9,597 8,228 2,256 2,277 15, 878 13, 399 2,995 3,127 13, 131 12, 580 1,895 1,789 40, 178 36, 860 6,915 6,570 27,047 1925 24, 280 Clay products and refractories: a 1927 5,020 1925 4,781 ° Exclusive of 4 establishments. 1 For location of principal producing sections see first part of this report under heading, " Mineral Resources." 515 516 INDUSTRIAL STRUCTURE OF NEW ENGLAND Stone and Earth Industries in New England, 1925 and 1927 — Contd. Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Concrete products: 1927 121 79 23 30 1,333 1,230 930 1,481 2,195 2,000 1,268 1,411 1,880 1,276 2,103 2,972 5,945 4,971 4,338 6,742 4,065 3,695 2,235 3,771 1925 Lime b : 1927 1925 Total « : 1927 •_ 717 702 14,116 13,216 22, 335 19, 937 19, 010 18,617 57, 376 55, 143 38, 366 36, 527 1925.. b Exclusive of 1 establishment. c Exclusive of 5 establishments. GRANITE, MARBLE, AND OTHER STONE Manufactures of granite, marble, slate, and other stone are of outstanding importance, representing 70 per cent of the total for the group, both in value of product and in manufacturing income. The manufacture of clay products and refractories represents about 12 per cent, and that of lime slightly less than 8 per cent. Concrete products comprised about 10 per cent of the total. No segregated figures are available from the Bureau of the Census for the indi- vidual kinds of stone. According to data from the Bureau of Mines, Xew England contributes approximately 45 per cent of the total value of granite for the United States, 38.4 per cent of the marble, 36.3 per cent of the slate, and 20.7 per cent of the crushed stone and trap rock. The combined importance of granite, marble, slate, and other stone in 1927 and 1925 is shown for each State in the accom- panying table, together with the national position of New England in 1914 and 1904. In the 2-year interval following 1925 the value of output from the stone industries in all New England increased by more than $3,300,000, with a gross value of product in 1927 exceeding $40,000,000. There was an increase in employment of more than 1,300 men, and their annual earnings in 1927 were almost $2,500,000 greater than in 1925. Each State shared in the increased activity of the stone industries, although there was a reduction in number of operating plants in each State except New Hampshire, and some falling off in value of output and of net revenue in Rhode Island, STONE AN |) OTHEB MINERAL MANUFACTURES 517 / 1 1 "T ~ZiCAJt'Q u,i I \ f s I 6 1 W/wwi^'l ) ] l^"^^ r* 5 ""^^ GRAND /S V \ _^t*. • V. n^/ . ?" FRANKLIN \ OtLfANS \w v>^sC- • S^&::< J 1 • Vi ( • • / .j.'l rfe r^£NNEBCC J . 1 J*S/\ XaT /* 3fNN/N6Tal—^^. f \_^ * 1 WINDHAM by 1 Y**\_ /I r 1 ( : ' v. ; . : . : v^A LOCATION OF ESTABLISHMENTS ENGAGED. IN GRANITE, MARBLE, SLATE AND OTHER STONE WORK NEW ENGLAND STATES 1927 ^\oOTS AND FI6URES SHOW NUMXR IN EACH COUNTY \rRANMLIH \W0» \MIDOL£3SX KjJ . * * _3 HAMPDEN \ 4^RWZ?Z\? V X U'TCH^IfLd\^f arfo „ \TOlLANQj WIND. ~nK- \ • • \ ^y^"^ DO 4-+07+6 Figure 46 61232°— 30 34 518 INDUSTRIAL STRUCTURE OF NEW ENGLAND Manufactuee of Granite, Marble, Slate, ami Otheb Stone en New England States, 1925 AND 11)27 Estab- lish- ments Wage earners Thousands of dollars Per cent of New England total value added State and year Wages Cost of materials Value of products Value added by manu- facture Vermont: 1927 203 211 157 165 40 44 42 33 31 41 14 18 5,205 4,651 2,166 1,611 924 653 609 512 343 308 350 293 8,411 7,087 3,820 3,375 1,319 992 1,046 847 671 593 611 505 7,870 6,480 3,208 3,592 520 844 546 449 549 754 437 461 21,318 18, 397 10, 834 10, 393 2,697 2,659 2,147 1,932 1,794 1,901 1,389 1,578 13,448 11,917 7,625 6,801 2,177 1,815 1,600 1,483 1,245 1,147 952 1,117 49 7 1925 49 Massachusetts: 1927 28 2 1925 28 Maine: 1927 8 1925 7 5 New Hampshire: 1927 5 9 1925 6 1 Connecticut: 1927 4.6 1925 . . 4 9 Rhode Island: 1927 3.6 1925 4.6 Total: 1927 487 512 930 G64 21.7 19.0 25.5 9,597 8,228 17, 081 19, 106 22.5 31.1 37.4 15, 878 13, 399 11, 962 11, 182 25.5 31.5 35.1 13, 131 12, 580 7,190 5, 114 18.8 19.0 19.3 40,178 36, 860 25, 684 23, 552 19.1 24.0 27.8 27, 047 24,280 18,494 18,438 19.3 26.7 31.7 1925 L_ 1914 2 1904 2 New England as per cent of United States: 1925 1914 1904 1 Includes only establishments with product of $5,000 or above. 2 Includes all establishments with output of $500 or more. In this group of stone products Vermont stands out as the leading State of New England, contributing more than half the total value of product and nearly 50 per cent of the net regional revenue from this source. The stone industry is the most important one in Ver- mont, contributing nearly one-fifth of the State's total revenucfrom all manufacturing. With an output from this source in 1927 exceed- in g $21,000,000 in value, the stone industries in Vermont produce nearly twice as much as in Massachusetts, the State next in impor- tance in this group of industries. The four other States do not differ so widely. Maine produced about $2,700,000, New Hampshire upward of $2,100,000, and Connecticut about $1,800,000; while the Rhode Island output had a value approaching $1,400,000. The stone industries of the United States show a pronounced fall- ing off in activity since 11)14, as indicated by the number of wage earners employed. For the country as a whole the number of wage earner- in 1925 was only 52 per cent of the number in 1914, and in New England it was only 48 per cent. This reduction results partly from the increased use of labor-saving machinery; but it is to be attributed very largely to drastic changes in the use of stone products throughout the country — in particular, to the great increase in the use of concrete as building material and to the reduction in the use of monumental and paving stone. In 11 years, from 1914 to 10*>f>, the gross value of products of all the -tone industries of New England advanced from $25,084,000 to STONE AND OTHKi; MINERAL MANUFACTURES 519 $36,860,000, an increase of 14 per cent; but the industrial revenue, as shown in the value added by manufacture, increased by only 31 per cent from $18,494,000 to $24,280,000. The number of wage earners fell off more than one-half in the Ll-year interval, while the total wages paid in the New England stone industries increased by 12 per cent. The national position of the New England stone industry as a whole is shown in the table on page 518. GRANITE Granite holds first place in the commercial stone production of New England; the granite produced in these States in 1925 repre- sented 45 per cent of the national output. New England contributed in that year 54 per cent of the monumental granite of the whole country, 48 per cent of the building granite, about 75 per cent of the granite paving blocks, approximately 20 per cent of the production of rubble and riprap, and 14 per cent of the crushed granite for concrete and roadbed material. Granite is produced in all six of the New England States, the order of importance in 1925 being Massachusetts, Vermont, Maine, New Hampshire, Rhode Island, and Connecticut. In that year granite represented in Massachusetts 63 per cent of the State's total output of stone products ; in Vermont, 29 per cent ; in Maine, 80 per cent ; in New Hampshire, over 90 per cent ; in Rhode Island, 80 per cent ; and in Connecticut, 29 per cent of all reported stone manufactures. Most of the granite shipped out of New England is in the finished form of monuments, columns, and building blocks, but a considerable quantity of rough granite and paving blocks is shipped to port cities along the Atlantic seaboard. The manufacture of granite paving blocks is, in a sense, a joint activity with the production of building and monumental stone, w T hile crushed stone and riprap are their by- products. Many of the quarries sell all these products, but some of them, particularly those along the coast, produce only paving blocks for sale. In former times these New England quarries sold large quantities of paving blocks for use in the streets of Philadel- phia and New York. This branch of the industry has been in large measure superseded in recent years by production of other forms of construction material. In the granite industry there is a considerable overlapping between the quarrying of the rough stone and the carving of it into finished monuments or into building stone or paving blocks. Secondary prod- ucts from the making of these articles are marketed as trap rock or crushed stone for uses as ballasting material or in making concrete. The rougher products of stone manufacture are made in or adjacent to the quarries, while much of the cutting and finishing of monu- ments is done by separate concerns apart from the quarrying. EXPERIENCES OF GRANITE MANUFACTURERS Replies to a special inquiry were received from nearly 100 New- England producers and manufacturers of granite, whose aggregate business in 1925 amounted to some $14,000,000. Type of production, — The greater portion of those replying stated that they made monuments and memorials. A considerable number 520 INDUSTRIAL STRUCTURE OF NEW ENGLAND sold their product as rough granite, and a few stated that building granite was their chief product. The summary for 91 replies regard- ing the principal product was as follows : Monuments and memorials, 69 firms; rough granite, 15 concerns; building granite, 5j paving blocks and curbing, 2. Sixteen of these companies reported as sup- plementary products the sale of crushed stone and riprap, paving stone and curbing, building stone, rough-granite columns, monuments, urns and vases, and granite rolls for paper-making machinery or for grindstones. Number employed. — The general size of operations of these report- ing granite manufacturers is indicated by the figures of individual employment and sales. The aggregate number of men employed by 90 companies was approximately 3,700, making an average of 41 workmen per plant. Two-thirds of the concerns employed fewer than 25 workmen each, and 17 of these employed fewer than 10 men each. There w T ere 13 companies reporting a pay roll between 25 and 50 men each; 9 concerns between 50 and 100; 8 between 100 and 250; and 2 companies with individual pay rolls exceeding 250. Yolv/ine of business. — As shown by 86 companies whose aggregate sales were $13,582,000, there were 52 establishments with individual sales in 1925 of less than $100,000 each. In this group, comprising chiefly small-sized operators, 23 establishments did an individual business of less than $50,000, and there were 29 operators with sales between $50,000 and $100,000. An annual volume of sales between $100,000 and $250,000 was reported by 19 concerns; 7 concerns re- ported sales between $250,000 and $500,000 ; 7 others between $500,000 and $1,000,000; and 1 reported a business exceeding $1,000,000. The average of sales for these 86 concerns was $158,000. Age of business. — One-half of the reporting companies had estab- lished their present business within the preceding 25 years and one- sixth within 10 years. There were 38 concerns that had been in opera- tion between 25 and 50 years, and 7 others more than a half century. Changes of management within the preceding 10 years were reported by 16 establishments. Branch establishments were indicated by 9 concerns, located principally within New England, but 2 concerns reported branches in New York State. Most of the branches were indicated to be secondary quarries for supplying rough stock for manufacture. Materials purchased. — The principal materials purchased in this work were reported to be tool steel, shot, chilled iron, abrasives, pol- ishing wheels, and carborundum. Other materials reported were blasting powder, acids, sand, plaster, and lumber. The majority of the companies indicated the use of practically all these materials, and in nearly all cases materials were said to be purchased within New England. In some cases purchases were made in the Middle At- lantic States or in the Middle West. Individual importations of granite were reported from Finland and of plaster from Europe. Operating activity.— The degree of activity, as indicated by the percentage of maximum operating capacity, from reports of 74 op- erators whose aggregate sales exceeded $11,000,000, averaged 58.2 per cent of the maximum 1925 capacity. There were 31 establishments reporting operations at 75 per cent or more, 32 others l>etween 50 and 75 per cent, and 11 others below 50 per cent. Additions to STONE AND OTHER MINERAL MANUFACTURES 521 plant capacity were indicated in 15 cases, including 7 f the larger companies whose individual business exceeded $250,000, and 8 other concerns below that amount. Two companies stated that they had more than doubled their capacity, and 2 others had nearly doubled, while 9 operators had increased capacity more than one-fourth. Re- ductions were reported in three instances, amounting to 25, 35, and 50 per cent, respectively. The rest of the companies either reported no change or did not answer. Wage incentives. — The use of wage incentives does not prevail to any considerable degree among the companies reporting. Eight of the operators stated that they used some form of incentive method in paying their workmen, 1 of these paying 90 per cent of its working force in this way, 2 others 25 per cent, and 5 others less than 10 per cent of their pay roll. Forty-six operators stated that they used no incentive method whatever ; the rest did not reply to this question. Sales trends. — Analysis of the sales trends of 76 concerns whose aggregate business in 1925 was $12,500,000 shows an increase of 49 per cent over the volume of these same concerns in 1921. Most of this increase took place previous to 1924. There was a slight de- crease — less than 1 per cent — from 1924 to 1925. In terms of the experience of individual companies, the analysis shows that more than three-fourths of the establishments increased their total sales from 1921 to 1925, while one-fifth decreased and a few showed no change. All but 1 of the 15 large concerns (exceeding $250,000) had a greater sales volume in 1925 than in 1921; of 61 of the smaller companies (below $250,000), 44 showed increased sales in 1925, while 15 showed a falling off and 2 remained unchanged. For this 5-year period the sales increases were relatively more numerous among the larger companies. In the 2-year interval from 1923 to 1925, 6 of the 15 larger companies increased their sales while 9 showed decreases ; and of 61 smaller concerns the number showing increased sales was ap- proximately the same as that showing decreases. Thus, in the later period the decreases were relatively more numerous among the larger companies. Location of markets. — Sixty-nine companies stated that a portion of their product was marketed within New England, while 10 others stated that none of their market was in that section. Five of the concerns stated that they sold all their product within New Eng- land; 17 others reported half or more of their sales in that section; and 47 others reported less than half of their sales in those States, 25 of these selling less than 10 per cent in that area. The weighted average of New England sales for the whole group, whose aggregated volume of business was in excess of $11,000,000, was 26 per cent. Exports were reported by only 3 of the 95 reporting companies, and their combined export sales were less than 1 per cent of their total business. An increasing volume of sales to New England customers was reported by 20 concerns, while 27 others reported decreased busi- ness in this section and 28 concerns reported no change in their New England business. Individual reasons given for increasing New England sales were increased building activity, improved labor conditions, lower prices and better products, more intensive sales effort in New England, increased advertising and sales effort, and 522 INDUSTRIAL STRUCTURE OF NEW KXCiLAXh broader acquaintance in the trade. One concern stated that its busi- ness had been increased by the use of imported foreign stone. De- creases were attributed, in individual cases, to competition from the South and the Middle West, the use of Indiana limestone in place of granite in building operations, importations of foreign stonework, increased cost of granite because of high wages, high freight rates, frequent strikes which compel . builders to turn to other building materials, and keen competition resulting from overproduction within New England. Methods of marketing. — The principal method of marketing the product, according to these companies, is direct to the retailer. Forty-seven companies reported reliance upon this channel and 35 of these reported no other channel. Thirteen concerns stated that their product is sold through selling agents, while 12 other con- cerns indicated that they sell direct to consumer. Sales to whole- sale dealers were reported in 11 instances, and in 5 of these this was the sole distribution channel. A number of companies reported sales through exclusive distributors. Of all of the concerns answer- ing this question 51 stated that their entire output is marketed through a single distribution medium and 41 others reported the use of more than one medium. Brands or trade-marks. — The use of an identifying brand or trade- mark on their" product was indicated by 26 of the 95 granite con- cerns. Five companies stated that they employ no such identification, and the others gave no indication of their practice. Advertising. — The use of advertising was indicated by 77 of the 95 granite companies replying, most of which reported the use of national mediums. Eighteen of these stated that they rely wholly upon direct mail and 16 wholly upon trade journals, while an equal number reported use of both mediums. Several of the companies stated that they advertise in magazines and one firm stated that its advertising is done through a granite association. Improvements effected. — Of the changes and improvements ef- fected, the most frequently mentioned was accident prevention, which w T as indicated in about half the replies. The employment of uni- form cost accounting was indicated by upward of one-fourth of the companies replying, while 20 replies indicated efforts to improve relations between management and workmen, as well as efforts look- ing toward continuous plant maintenance. Progress in the stand- ardization of products was reported in 10 instances. MARBLE The commercial production of marble in New England is confined almost wholly to Vermont, a small amount from Massachusetts being the only other product from this section. For many years Vermont, with its deposits of high-grade marble, has been the leading State of the United States in the marble industry, the other important pro- ducing States being Georgia, Tennessee, and Missouri. In 1925 the reporter] marble production of these three States outside New Eng- land wjis valued at $6,709,000, while that of Vermont was $5,144,000, representing 37.1 per cent of the national total. In Vermont the pro- duction of marble represented about 40 per cent of the total value of the stone production of that State in 1925 and 38.4 per cent in 1926. STONE AND OTHER MINERAL MANUFACTURES 523 For all New England the value of marble produced in 1925 repre- sented about 19 per cent of the total stone production of the region. The value of all marble produced in the entire United States in that year was only a little more than the total value of granite produced in New England. SLATE The commercial production of slate in New England is confined to Vermont and Maine, their product in 1925 having a value of $4,567,- 000 and representing 36.3 per cent of the total national production. Vermont, with an output of $3,963,000, is the principal producer of slate, with 31.5 per cent of the national total to its credit, and is sur- passed in this production only by Pennsylvania. The principal slate product is roofing, while mill stock, granules, slate flour, flagging, switchboard bases, vaults, and billiard-table bases are secondary products. LIMESTONE AND LIME Limestone is produced commercially in several parts of New Eng- land for sale either as rough stone or as burned lime. The principal production is in western Massachusetts and along the Maine coast, particularly in the vicinity of Rockland. Lime has been sold and shipped from this latterl place to points along the Atlantic coast and the Gulf for more than a century. Considerable quantities of lime and limestone are used in various New England industries, particu- larly in paper making, sugar refineries, tanneries, metallurgy, and certain other chemical industries, as well as in agriculture and in building and construction work. In the production of lime Massa- chusetts has been since 1917 the leading State of New England. Maine holds second place, and the combined output of Connecticut and Vermont approximates that of Maine. Some falling off from 1925 to 1927 is observed in the manufacture of lime, as is shown in the following table. Manufactuke of Lime in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 9 10 6 6 8 9 5 581 586 179 236 170 202 457 816 793 250 306 202 211 101 1,421 1,419 338 405 344 406 742 2,933 3,307 705 907 700 782 1,745 1,511 1925 1,888 Connecticut: 1927 368 1925 503 Vermont: 1927 356 1925 .. 376 Maine: 1925 1,003 Total: 1927 23 30 260 283 10.6 930 1,481 10, 903 12, 095 12.2 1,268 1,411 12, 191 14,002 10.1 2,103 2,972 17,269 20, 049 14.8 4,338 6,742 41, 587 50, 736 13.3 2,235 1925 i 3,771 United States: 1927 ._ 24, 318 1925 30, 687 New England as per cent of United States in 1925. 12.3 1 Exclusive of 1 establishment in Rhode Island. 524 INDUSTRIAL STRUCTURE OF NEW ENGLAND CLAY AND CONCRETE PRODUCTS Besides the foregoing products of the stone industries, the making of clay products, consisting principally of brick and tile, was repre- sented in 1927 by 86 establishments in the six States, whose product had a value of nearly $7,000,000. In this production Massachusetts and Connecticut are of approximately equal importance, that of each State exceeding $2,500,000. New Hampshire and Maine each pro- duced a value of less than $1,000,000. The only States reporting the production of pottery, in small amounts, were Massachusetts and Connecticut. The importance of clay products and refractories in each of the producing States is shown for 1927 and 1925 in the next table. Manufacture of Clay Products or Refractories in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 31 30 27 26 12 12 16 13 796 887 936 897 288 289 236 204 1,033 1,145 1,279 1,322 407 406 276 254 746 670 689 736 198 202 262 181 2,760 2,607 2,659 2,516 812 828 684 619 2,014 1925 1,937 Connecticut : 1927 1,970 1925 1,780 New Hampshire: 1927 614 1925 . 626 Maine: 1927 422 1925 _ 438 Total: 1927 86 81 1,939 2,256 2,277 102, 777 2,995 3,127 127, 127 1,895 1,789 100, 013 6,915 6,570 333, 730 5,020 1925 i 4,781 United States, 1925 _. 233, 717 1 Exclusive of 1 establishment in Rhode Island and 3 in Vermont. The making of concrete products, consisting mainly of building blocks, pipe, tile, garden furniture, and fence posts, was reported from 121 establishments in five of the New England States in 1927, employing 1,333 wage earners and making products aggregating in value nearly $6,000,000. These products are mainly for local con- sumption, constituting a supply of building and construction ma- terials for use within New England. Their importance in the in- dividual States is shown in the table. Substantial increases in the 2-year interval following 1925 appear in most of the States. STONE AND OTHER MINERAL MANUFACTURES 525 Manufacture of Concrete Products in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added hy manu- facture Massachusetts: 1927 79 42 23 21 14 9 5 4 3 738 556 437 613 142 34 16 18 9 1, 275 995 636 921 263 53 20 20 11 1,078 797 368 382 416 55 18 27 15 3, 503 2,780 1,589 1,920 803 167 50 62 42 2, 425 1,983 1,221 1,538 386 112 33 35 27 1925 Connecticut: 1927 1925 Rhode Island: 1927 1925__ Maine: 1927 1925 _ __. New Hampshire: 1925 _._ Total: 1927 121 79 2,330 1,666 1,333 1,230 17, 808 14, 722 2,195 2,000 24, 898 20, 761 1,880 1,276 33, 913 27, 792 5, 945 4,971 93, 259 75, 214 4,065 3,695 1 59, 346 47, 422 1925 United States: 1927 . 1925 NEW ENGLAND MARKET FOR BRICK AND FOR SEWER PIPE [Note. — The section on brick and sewer pipe and that on Portland cement were pre- pared by Edwin Bates of the Domestic Commerce Division.] BUILDING BRICK Although no figures are available as to the consumption of build- ing brick in the New England States, the market of this region is believed to be supplied practically by its own production. Only lim- ited quantities of brick are shipped out of the region, and these are probably offset by incoming shipments from adjacent sources. The production statistics may thus be taken as a fair indication of the amount of New England consumption. Production of common building brick in 1925 was reported by 80 establishments in four States — Connecticut, Massachusetts, New Hampshire, and Maine — and amounted to upward of 352,000,000, with a stated value exceeding $5,300,000. The principal producing State is Connecticut, which contributed 45 per cent of the total and together with Massachusetts represented 80 per cent of the New Eng- land production. The figures for the individual States are as shown in the following table. Production of Common Brick in New England States in 1925 State Estab- lish- ments Production in thou- sands Total value Connecticut 25 27 11 17 166, 552 124,769 41, 497 19, 207 $2, 397, 491 Massachusetts _- 1, 901, 336 New Hampshire 721, 837 Maine. -.. 310, 642 Total 80 352, 025 5, 331, 306 526 [NDUSTRIAL STRUCTTJKE OF NKW KNdLANh There is practically no production of face brick within New Eng- land, but a special type, known as the Harvard brick, made by three, or four companies located in Massachusetts and New Hampshire, is quite widely used for facing purposes. This product has a wide sale in New England and some sale on the outside. Production of sand-lime brick in the State of Maine has been increasing. There is no production of fire brick reported in New England, and none of paving brick. Only limited shipments of paving brick are made into the region on account of the high cost of freight from the pro- ducing centers and the prevailing use of other materials for paving. As indicated by the deliveries of a large brick manufacturer over a period of years, the seasonal peak of brick sales occurs in June and declines very rapidly after October and through February. Some attempts have been made by manufacturers to reduce the sharp seasonal curves in this business by educating contractors to the prac- tical advantage of building with brick in the winter. SEWER PIPE Estimates by the trade are to the effect that New England cities and towns consume yearly about 6,000 carloads of vitrified-clay sewer pipe. Of this amount the New England production is estimated to be from 1,100 to 1,200 carloads, and the remainder is purchased from the outside. Of shipments from the outside it is estimated in the trade that 55 per cent originates in Ohio and 45 per cent in Pennsylvania. New England is limited in its production of sewer pipe in the same manner as in that of paving brick. Satisfactory deposits of clay which are vitrified at high temperature are extremely limited. It is reported that various companies which have made surveys for the purpose of locating satisfactory clay deposits in these States have been unable to find such deposits. Production of vitrified-clay pipe in New T England depends largely upon the shipment of clay of the required quality from New Jersey. Apparently little use is found in New England for cast-concrete sewer pipe, or for iron or steel pipe for sewerage purposes. A limited amount of cast-iron pipe, rejected for water or gas service, is sold for sewer construction, and concrete channels for carrying sewerage are used to some extent. An objection to the use of concrete pipe arises from the fact that the construction of a concrete base is fre- quently necessary, and this makes the project practically as costly in the long run as to build a concrete trench at the outset. Construc- tion of brick sewer mains is practically a thing of the past, largely on account of the high labor cost. In northern New England sewer construction begins generally about April 15 and continues until the middle of November; in southern New England construction generally begins before April 1 and continues until about December 1. No practical way ap- pears for eliminating the high seasonal factor, inasmuch as the cost of construction is greatly increased by the slowing down of operations from the freezing of the ground. Aside from certain limited types of preparatory work, such as rock blasting, practically nothing is done in the way of sewer construction during the winter motif bus. STONE AND oTIIKl; MINERAL M A X T 1 At T I REg 527 Contracts for sewer pipe are generally closed by New Kngland cities during the months of April and May, specifying shipments at the option of the buyer. Frequently these shipments are delayed as late as August or September, and this delay necessitates the storking of pipe at the factories. The manufacturers do not appear to favor shipments during the off season, as is the practice with the makers of cast-iron pipe. Apparently no discounts are offered for pureha during the off season. NEW ENGLAND MARKET FOR PORTLAND CEMENT In the past New England has been wholly dependent upon outside sources to meet its demands for cement required in the construction of roads, pavements, and sidewalks; sewers, hydroelectric and har- bor development; public, commercial, and residential building; and for farm uses. The establishment of producing plants near Rock land, on the coast of Maine, is a new development, which is of sig- nificance in New England construction work. This new industry, by using local or near-by supplies of limestone, gypsum, and clay, only a short distance from tidewater, is expected to furnish ultimately a considerable portion of the New England requirements for Port- land cement. Since this section of the country has reached a relatively high stage of development in its construction, the amount of new con- struction, year by year, requiring cement is comparatively small. Much of the highway and street construction was completed some years before concrete had been generally adopted for these uses, and other basic materials are found satisfactory to meet the requirements of local conditions. There is also a relatively small amount of con- struction of commercial and industrial buildings of the types using reinforced concrete. In terms of per capita consumption of cement, New England ranks low in comparison with other sections of the country. The total consumption of Massachusetts, Connecticut, and Rhode Island, ac- cording to reports of the Bureau of Mines, is only 3.7 per cent of that for the entire country. In recent years, however, certain factors have stimulated the use of cement, especially in the southern portion of New England. There has been extensive construction of educational buildings and of garages and considerable activity in the building of apartment houses and commercial structures. This has been true particularly in the metropolitan area of Boston and in several of the other com- mercial centers. Members of the cement trade state that this ac- tivity has been a distinct factor in increasing the consumption of cement in the New England market. In the construction of the other large types of building, however, structural steel often replaces reinforced concrete because the necessary strength is thus secured with a smaller volume and Weight of construction materials. The annual shipment of cement into New England from domestic and foreign sources is upward of 7,000,000 barrels a year. The total amount has increased each year since 1923, and in 1927 it exceeded 7,500,000 barrels. 528 INDUSTRIAL STRUCTURE OF NEW ENGLAND The three States of southern New England absorb about 85 per cent of the total cement shipments into New England. Shipments of domestic cement into the three northern States — Maine, New Hampshire, and Vermont — during the five years from 1924 to 1028 averaged about one-sixth of all domestic shipments to New England and imports into the customs districts of these States were about one-eighth of the total for all New England customs districts. The comparatively low value of cement and the high local freight rates are factors which operate to prevent any extensive shipment from one section to another; hence the figures of shipments by States may be taken as a fair indication of the consumption of the individual States. Of the States of northern New England Maine ranks first in volume of cement shipments; New Hampshire comes second, and Vermont third. A reason for the low consumption in these States is the relatively small amount of road construction or street paving with concrete surfaces or concrete base. There is also little con- struction of commercial and industrial buildings with reinforced con- crete. The cement market in the State of Maine, however, was stimulated during the last few years by the construction of hydro- electric plants. Domestic shipments into that State in 1926 were 60 per cent greater than those of the year preceding, and a large part of this increase came from the demands for hydroelectric construction. SEASONALITY OF SHIPMENTS As cement is stored to only a limited extent, the volume of ship- ments is fairly indicative of the rate of consumption. There is pronounced seasonality in shipments to the New England territory on account of the limitations imposed by winter weather upon con- struction activity. The seasonality is, therefore, generally more pronounced in the northern section. Movement into the northern New England States begins actively in the month of April, and shows a fairly steady rise in the months immediately following. Highway construction usually begins the latter part of April, and contracts are frequently completed by August 1. Building contracts awarded during the summer usually call for completion before the end of the season. Heavy shipments of cement usually continue through September and October; then they show a very sharp decline. Cement shipments into Maine during the seven months from April to October comprised 83 per cent of the yearly average for 1924, 1925, and 1926, and shipments in the five months from November through March were only 17 per cent. In Vermont the winter shipments were only 14.6 per cent of the year's total, while in New Hampshire they were approximately •^5 per cent. In the three States of southern New England the ship- ments from April to October, inclusive, were from 76 to 79 per cent of the year's total, and the winter shipments were from 21 to 24 per cent. Percentages for the individual States are shown, by months, in the following table. STONE A.\l> OT1IKK MINERAL M A N FACTTJRES 529 Seasonality of Domestic Shipments of Cement [nto Ni \\ England States, L924 L926 Month January. February March April May June July August September October November December April-October, inclusive November-March, inclusive Average monthly percentage of yearlj total Maine 2.80 2. 76 4.96 8.24 K). 68 12.53 12. 54 15.32 13.64 10.27 4.51 1.68 83.22 16.78 New Hamp- shire 3.06 3. 57 5. 86 9.13 9.75 10.32 11.14 12.04 11.49 11.28 7.68 4.60 75.15 24.85 Vermont 3.27 L.87 3. 49 7. 57 9.81 1 5. 8 1 12.09 14.45 14.02 11.63 4.42 1.50 85.41 14.59 Massa- chusetts 3.30 2. 99 6.3 1 9. 70 LI. 33 10.92 11.37 11.06 10.80 10.70 7.80 3.55 75.97 24.03 < 'onnec- ticul 2.42 2.27 5. 14 8.74 10.68 10.82 11.35 LI. 66 13.15 12.64 7.93 3.24 78.94 21.06 Rhode Island 2.69 2. 33 ft 09 10. 21 12.41 12.45 10.30 10. 29 10. 15 12. 12 7.29 3. 59 77.93 22. 07 Efforts toward reducing the seasonality in the cement market by stimulating concrete construction during the winter months have been made during the past few years by the Portland Cement Asso- ciation and by individual manufacturers. While definite figures are not available as to the degree of success in this direction, there is considerable evidence that the efforts to increase winter construction activity have been effective. Large contracting firms, equipped with the necessary skill and courage to undertake winter construction, now carry on projects throughout the winter from December to April, thus keeping their force at work and eliminating the necessity of obtaining new labor at the opening of the construction season in the spring. In particular, concrete construction on the hydroelectric projects along the coast of Maine were carried on through the winter, and as a result shipments of cement into Maine in January and February of 1926 were 15,000 barrels greater than in the year preceding. DOMESTIC SOURCES The domestic supplies of cement for the New England market come almost entirely from two regions. The nearest of these is along the Hudson River in New York State, and the other is the Lehigh district of eastern Pennsylvania, which is the oldest cement-produc- ing center in the United States. Large shipments are made from this district each year into New England, but no figures are available to indicate the relative importance of the two sources. Variations in transportation charges between the two districts are not a factor in competition to New England points. The railway transportation charges from Lehigh and other districts are absorbed by the manu- facturer, and prices are quoted on a delivered basis. On account of the bulky nature and relatively low value of the product every effort is made to avoid unnecessary handling, and only a limited redistribur tion from large commercial centers takes place. Shipments are made direct to the point of consumption, in so far as possible, and there is very little reloading for distribution to small outlying centers. Load- ing figures of cement shipments by the New England railroads, with 530 i::m t stimal STRUCTURE ok xkw kxclaxd the exception of the Boston & Albany, are small. The following table shows the domestic shipments into each of the States of New England from 1923 to 1927. Domestic Shipments of Cement Into New England States, 1023-1927 [In barrels of 376 pounds] State or region 1927 1926 1925 1924 1923 5-year total Yearly average Maine. 505, 952 459, 706 393, 294 548, 155 438, 350 271,615 333, 829 426, 138 217, 286 386, 593 378, 554 300, 102 510, 339 359, 574 234, 182 2, 284, 868 2, 062, 322 1, 416, 479 456, 974 412, 464 283, 296 New Hampshire Vermont . Total, 3 northern States. .. 1, 358, 952 1, 258, 120 977, 253 1, 065, 249 1, 104, 095 5, 763, 669 1, 152, 734 Massachusetts 2, 820, 132 2, 061, 892 700, 851 2, 982, 987 1, 856, 786 ' 634,626 3, 418, 028 1, 758, 443 711,391 3, 359, 553 1, 582, 312 608, 355 3,124,238 1,441,271 509, 584 15, 704, 938 8, 700, 704 3, 164, 807 3, 140, 988 1, 740, 141 Connecticut ._ Rhode Island.. 632, 961 Total, 3 southern States _ . 5, 582, 875 5, 474, 399 5, 887, 862 5, 550, 220 5, 075, 093 27, 570, 449 5, 514, 090 Total, New England do- mestic shipments Total, New England im- ports.' 6, 941, 827 605, 817 6, 732, 519 703, 426 6,865,115 408, 127 6, 615, 469 88, 760 6, 179, 188 101, 169 33, 334, 118 1,907,299 6, 666, 824 381, 460 Total,domestic and foreign 7, 547, 644 7, 435, 945 7, 273, 242 6, 704, 229 6, 280, 357 35, 241, 417 7, 048, 283 FOREIGN SOURCES Imports of cement from foreign countries at the port cities of New England have shown a pronounced increase in the past few years, a maximum of 703,426 barrels being recorded in 1926. Most of these imports are received at the port of Boston. Imports into the customs districts of northern New England are not large, the amount ranging from 44,000 to 87,000 barrels since 1924. The max- imum was reached in 1925. The 5-year total for all New England, from 1924 to 1928, was approximately 2,300,000 barrels, making a yearly average of approximately 476,000 barrels. Figures of im- ports into the various customs districts of New England for the last five years are presented in the following table. Imports of Cement into New England Customs Districts, 1924—1928 [In barrels of 376 pounds] Districts 1928 1927 1926 1925 1924 5-year total Yearly average Maine and New Hampshire: Free 15,012 35, 323 36, 120 6,482 79, 687 566 2,949 375 133, 768 75, 238 191 85, 431 26, 754 Dutiable . 32, 492 191 54, 189 15, 048 Vermont : Free 38 Dutiable 974 1,518 1,513 27, 237 17, 086 Total, northern England New 51,309 44, 120 81, 766 86, 872 30, 561 194, 628 58, 926 usetl Free 470,090 250 54, 036 476, Ml 5,000 80, 156 551, 129 62, 083 170, 591 150, 664 55, 470 2,729 1, 723, 821 220, 726 134, 192 8,448 344, 764 Dutiable 44, 145 Rhode i land: 26, 838 Conned Icul : Free 8,448 1, 690 Total, 'iijthfrri England New 524, 376 661,697 621,660 321,255 58, 199 2, 087, 187 417, 437 gland: Free 689, L38 36, 547 692,817 13,000 639, 264 64, 162 170,782 237,346 68,419 30, 341 2. 000, 420 381,395 400, 084 Dutiable 76, 279 Total \>w England, free and dutiable 575, 686 605, HI 7 703, 426 408, 127 88, 760 2, 381, 815 476, 363 STONE ANT) OTHEB MINERAL MANUFACTURES 531 About 90 per cent of the cemenl imported into the New England States comes from Belgium free of duty. The remainder, paying duty, comes from France, Denmark, Norway, Germany, Canada, and a few other countries. Five entry of cement' is extended to countries which levy no duty against the American product. The figures of annual imports into the New England customs districts arc shown by country of origin for 1926 in the following table. Imports of Roman, Portland, and Other Bydb w:uc Cements into New England Customs Districts, by Countries of Origin, Calendar Xbab L926 [In tons of 2,240 pounds] Country of origin Maine and New- Hampshire Vermont Massachu- setts Connecti- cut Total Belgium __ __. 11,851 88, 421 8, 915 3, 707 1, 506 1,418 101 690 France .__ - _ 8,916 3, 707 1,506 Denmark.. __ _ . Norway,. ___ ___ . Netherlands. _ . _ 1,525 1,525 United Kingdom __ . 383 383 Canada. 95 254 349 Total 13* 471 254 102, 932 1,418 118,075 Note. — There were no imports into Rhode Island. METHODS OF MERCHANDISING CEMENT Eighteen cement companies were engaged in the sale of cement in the southern New England States in 1927; 15 companies were oper- ating in Maine and Vermont ; and 17 companies in New Hampshire. The bulk of the trade is in the hands of about one-half of these com- panies. Most of them maintain regional offices in Boston, but there is no uniformity in the territory covered. A few companies assign all six New England States to their Boston headquarters; others cover the New England district with the exception of Con- necticut ; and some assign the New England States with the exception of portions of Massachusetts and Connecticut west of the Connecticut River, which are included in the territory of their New York office. The manufacturer usually assigns 1 salesman to Maine, 1 to New Hampshire, 1 to Vermont, 3 or 4 to Massachusetts, 1 to Rhode Island, and 2 or 3 to the State of Connecticut. These salesmen keep closely in touch with construction developments, particularly with projects in which cement is to be used. The manufacturers' salesmen have au- thority to quote prices, close the sale, and assign the contract to one of the dealer representatives. The dealer's salesmen keep in touch with developments and cooperate with the salesmen of the manu- facturer. The usual trade allowance for the dealer is 10 cents per barrel, with an additional 10-cent allowance for payment within 30 days. An additional charge is made for cement in cotton bags, with a discount for the returned bags. The credit risk of the pur- chaser is assumed by the dealer. None of these companies operate their own warehouses for carry- ing stocks at any point in the New England area. Some com- panies watch carefully the stocks of their principal dealers, to assure a sufficient supply to meet the usual demand of the cement trade. FOOD MANUFACTURES AND TOBACCO Although the food-manufacturing activities of New England do not compare in volume with its major industries, they are of sig- nificance because the consuming population of the region is dependent upon them in considerable measure for its food requirements. These industries, in particular, provide an important market for products # of New England agriculture and fisheries. In some lines, notably confectionery and fish products, a considerable portion of the output is marketed outside New England and thus brings in an income from other parts of the country. The various food-manufacturing industries in 1925 contributed ap- proximately $123,000,000 to the manufacturing revenue of New Eng- land, as shown by the value added by manufacturing. The gross value of all of these food products exceeded $350,000,000. In addi- tion to the primary raw materials, these industries provided a market for materials, including fuel and other supplies, valued at upward of $230,000,000 and provided employment to more than 36,000 wage earners who were paid upward of $42,000,000 in wages. The largest items in this total are bakery products and confec- tionery. The manufacture of bread and bakery products in 1927 added more than $55,000,000 to the region's revenue, and comprised 45 per cent of the value added by all the food manufactures, with a gross output exceeding $113,000,000 in value. The manufacture of confectionery, with products having a gross value exceeding $53,- 000,000, added nearly $23,000,000 to the income of New England and represented 21 per cent of the group total. Manufacture of meat products was the source of upward of $11,000,000 in revenue, repre- senting 10 per cent of the group total. The canning and preserving of fruits, vegetables, and fish products contributed a little less than $9,000,000, comprising 9 per cent. The manufacturing revenue from dairy products, including ice cream, butter, cheese, and condensed milk, was nearly $14,000,000, the major portion of which was derived from ice cream. Manufacture of various other food preparations added to the region's revenue about $5,000,000, comprising 5.6 per cent of the income from these food manufactures. The income from chocolate and cocoa in Massachusetts was about $3,200,000. The im- portance of each of these items in 1927 and in 1925, as far as can be shown by the census figures, is indicated in the following table. This table does not include flavoring extracts and sugar refining, which would add materially to the total. 532 FOOD MANUFACTURES AND TOBACCO 533 Manufacture of Food and KindAed Pboducts in New England, 1.925 and 1027 Item and year FOOD PRODUCTS Bread and other bakery products: 1927 1925 Confectionery group: 1927 1925 Confectionery— 1927 1 1925 2 Chocolate and cocoa — 1927 3 1925 4 Dairy manufactures: 1927 1925 Ice cream— 1927 1925 Butter, cheese, and condensed milk — 1927 5 1925 Slaughtering, meat packing, and sausage making: 1927 1 1925 6 Canning and preserving: 1927 1925 Fish, clams, lobsters, etc. — 1927 7 1925 8 Fruits, vegetables, etc. — 1927° 1925 s Miscellaneous food preparations: 1927 10 1925 Flour, feed, etc.: 1927 1925 Total New England: 1927 1925 KINDRED PRODUCTS "1927 1925 Cigars and cigarettes: 1927' 1925H Estab- lish- ments 1,714 1,735 210 199 190 12 303 389 284 270 79 119 149 144 203 233 117 148 51 107 137 185 2,827 2,992 422 375 101 127 Wage earners 13, 509 13, 538 9,940 9,375 9,034 8,299 906 1,076 2,094 2,774 1,939 2,266 155 508 4,179 4,195 4,242 4,399 2,805 2,709 1,437 1,690 711 1,135 444 619 35, 119 36, 035 1,804 1,865 2,386 2,864 Thousands mdollars Wages 17, 922 18, 374 8, 695 8,701 7,807 7,312 1,389 2,988 3,861 2,797 3,220 192 640 5,509 5,432 3,102 3,515 1,919 2,087 1,183 1,428 785 1,271 503 39, 504 41, 853 2,406 2,663 2,806 3,379 Cost of materials 58,012 58, 127 46, 329 40, 431 30, 602 27, 626 15, 728 12,806 19, 145 21,443 14, 389 12, 693 4,756 8,730 64,422 65, 600 16, 570 19, 664 8,417 9,804 8,153 4,188 8,754 10, 054 15, 255 218, 720 229, 255 Ad< Value of products 113,662 106,903 72, 406 70,061 53, 448 52, 557 18, 958 17, 504 32, 951 34, 631 27, 400 24, 075 5, 551 10, 556 75, 758 77, 043 25, 485 30, 346 13, 103 14, 886 12, 382 15, 460 9,220 15, 276 11, 506 17, 985 340, 989 352, 245 7,512 8,491 4,122 5,141 19, 444 20, 051 9,651 11, 653 Value added by manu- facture 55,653 18, 775 26, 077 29, 630 22, 846 24, 931 3, 230 4, 698 13, 807 13, 208 13,012 11,382 795 1,826 11,336 11,443 8,914 10, 681 4, 686 5,082 4,229 5,600 5,033 6,522 1,453 2,730 122, 269 122, 990 11,932 11,559 5,529 6,512 1 Not including New Hampshire and Vermont. 2 New Hampshire, 3; Vermont, 3. 3 Not including New England States, except Massachusetts. 4 Connecticut, 1. 8 Not including Maine, New Hampshire, and Rhode Island. 6 Connecticut, 4; New Hampshire, 5; Vermont, 1. 7 Not including New Hampshire, Rhode Island, and Vermont. s Rhode Island, 1. 9 Not including Connecticut, New Hampshire, and Rhode Island. i° Not including Maine, New Hampshire, Rhode Island, and Vermont. 11 New Hampshire, 5; Vermont, 2. 61232°— 30 35 534 INDUSTRIAL STRUCTURE OF NEW ENGLAND BAKERY PRODUCTS The making of bread and other bakery products is distributed over New England largely according to the distribution of popula- tion. There are a number of large baking companies in the prin- cipal centers of population, and a great many smaller establishments serving their local communities. This industry has had a great expansion in the last decade, in consequence of the improved facilities for rapid transportation, as well as changes in household habits. Great improvements have been made also in bakery equipment and marketing organization. Comparative figures for the individual States are shown for 1927 and 1925 in the following table, with New England totals also for 1914 and 1904. There was in 1927 about the same total number of wage earners, but a considerable increase in the gross value of prod- ucts and in net revenue as shown in the value added by manufacture. Manufacture of Bread and Other Bakery Products in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 1,044 317 290 317 133 132 127 121 76 86 44 48 8,473 2,179 2,099 2, 179 1,246 1,260 946 803 466 541 279 326 11. 028 3,329 3,128 3,329 1,651 1,654 1,113 884 620 710 382 407 37, 102 9,098 8,934 9,098 4,864 5,164 3,584 3,360 2,072 2,428 1, 456 1,560 73, 706 16, 254 17, 435 16, 254 9,377 9,206 6,894 6,187 3,785 3,883 2,465 2,527 36, 604 1925 7, lo6 Connecticut: 1927 -. 8,501 1925 7,156 Rhode Island: 1927 ---. 4,513 1925 4,042 Maine: 1927 3,310 1925 2,827 New Hampshire: 1927 1,713 1925 1,454 Vermont: 1927 1,009 1925 967 Total: 1927 1,714 1, 735 2,529 1,930 13, 509 13, 538 12, 775 9,280 17, 922 18, 374 7,882 5,154 58, 012 58, 127 28, 611 17, 798 113, 662 106, 903 51, 036 30, 674 55, 651 1925 48, 775 1914... 22, 425 1904... 12, 876 Replies to a special inquiry covering individual sales of 26 baking companies ranging in size from $26,000 to more than $1,000,000, showed, for the group, average annual sales of $421,000 in 1925. A number of these companies maintained branch plants. The average output as reported was 76 per cent of their capacity, and sales of all manufacturers were reported as made entirely within New Eng- land. A general increase in sales was indicated in the past few years, whirl) was alt rihutcd to extension of sales territories and to the appli- cation of more energetic selling methods. Most of these companies make use of local advertising through the newspapers. The average cost of advertising, as indicated by 20 concerns, was 3.7 per cent of FOOD MANUFACTURES AND TOBACCO 535 their total sales. The average selling costs, exclusive of advertising, were 15.4 per cen< of total sales. Their main method of distribution was stated to be direct to the retailer, but a considerable number supplement this by sales through wholesalers or exclusive distrib- utors, and some maintain retail stores. THE CONFECTIONERY INDUSTRY The manufacture of confectionery, including candies, nuts, stuffed fruits, and similar products, is one of the substantial industries of New England, adding in 1927 about $23,000,000 to the revenue of the region from the processes of manufacture and giving employ- ment to some 9,000 wage earners, who made products with a gross value of $53,448,000. This is exclusive of the manufacture of choco- late and cocoa, in which 12 Massachusetts concerns in 1927 made a product valued at $18,958,000; and of maple products, in which the value of the Vermont production in 1925 was $3,150,000, representing 74 per cent of the New England output of maple products. LOCALIZATION The confectionery industry is concentrated largely in Massa- chusetts, which contributed 95 per cent of the total New England manufacturing income from confectionery; Boston and Cambridge are the centers of outstanding importance in New England. Con- necticut contributed less than 4 per cent, and the other States minor amounts. In 1925 New England contributed 14.5 per cent of the total na- tional manufacturing income from confectionery. This income in Massachusetts showed an increase of 180 per cent in 1925 over 1914, in comparison with the growth of 191 per cent for the entire United States. New England has thus held its national position in this line better than in some other lines of manufacture. Statistics of pro- duction for the individual States in 1927 and 1925, and comparative totals for 1904 and 1914, are presented in the following table. Some increase in activity since 1925 is indicated in the increase in number of wage earners and of establishments. There was a slight increase in the gross value of the product, but, on account of a considerable increase in cost of materials, there was a falling off of some $2,000,000 in the revenue derived from this industry. Massachusetts reflects this general situation. In Connecticut there was some increase in net revenue and a considerable increase in gross value of product. In Maine and Ehode Island there was some falling off. 536 INDUSTRIAL STRUCTURE OF NEW ENGLAND Manufacture of Confectionery in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 148 134 20 21 19 23 11 12 8,373 7,625 414 434 88 110 159 130 7,244 6,755 368 356 71 82 125 118 28, 308 25, 843 1,649 1,123 279 254 365 405 49, 674 49, 334 2,752 2,064 483 467 539 692 21,366 1925 23, 491 Connecticut: 1927__ 1,103 1925 941 Maine: 1927 203 1925 212 Rhode Island: 1927_ 174 1925__ 287 Total: 1927 198 190 244 150 9,034 8,299 8,183 4,819 7,807 7,312 3,084 1,524 30,602 27, 626 14,003 6,436 53, 448 52, 557 22, 947 10, 964 22, 846 1925 1 24, 931 1914 8, 915 1904 4,528 1 Not including New Hampshire, 3; Vermont, 3. CONDITIONS IN THE INDUSTRY Size and age of establishments. — In response to an inquiry sent to every New England manufacturer of confectionery, replies were received from establishments whose combined sales represented approximately 75 per cent of the total New England output. These replies are representative both of large and of small plants, as they include individual concerns with sales volume ranging from as low as $18,000 up to $6,000,000. Included in the group were 11 concerns doing an individual business exceeding $500,000, and 10 others with individual sales between $100,000 and $500,000. The average period of operation for the group was 20 years, and the average period under present management was 12 years. The oldest concern in Massa- chusetts had been in business for 75 years, and the oldest in Con- necticut 26 years. The confectionery business is, in general, a localized industry, although the larger concerns have a w r ide distribution of product. Branch plants were reported by one-fifth of the companies replying, but in only one instance were these branches located outside New England. The principal factors determining the location of plants in this industry are accessibility of markets and facilities for dis- tribution. Additions to plant capacity since 1921 were indicated by one- fourth of the companies replying. The 1925 output of the companies which had increased their capacity did not exceed, in any case, 80 per cent of their' maximum capacity; the average output in 1925 for the entire group was 67 per cent of full capacity. Raw materials* — The principal raw materials reported are sugar, chocolate and cocoa, butter and milk, and flavoring extracts. Most of these are obtained from New England sources, but chocolate and cocoa were reportedtto be purchased generally outside New England. FOOD MANUFACTURES AND TOBACCO 537 Manufactur'nia practices. — The use of wage incentives was indi- cated by approximately one-half the group, with an average of 28 per cent of their employees paid on some form of bonus or piece- work basis. A number of the concerns, however, reported from 70 to 90 per cent of their workers on some incentive plan of payment. The replies indicated the low period of activity in the early spring, with gradual recovery to peak activity in the fall of the year. Several concerns reported success in overcoming seasonal periods by the introduction of supplementary products. One-third of the replies indicated some progress along this line. Of various other improve- ments mentioned, the largest number of concerns indicated that they were giving attention to standardization of their products. Sales trends. — The trend of sales from 1921 to 1925 of these repre- sentative companies showed a gradual but continuous increase, with the exception of some falling off in 1922. One-half of the companies reported individual increases in sales during the last five years, while one-fourth reported decreasing sales and the rest showed no ma- terial change. Among those whose business had increased, the largest number stated that extension of territory and new sales methods were the principal contributing factors; while the com- panies with decreasing sales volume attributed the falling off to competition from other sections and to new elements in the confectionery business. Location \of markets. — The local nature of the market in this in- dustry is indicated by the fact that four-fifths of the companies re- porting stated that they sold a majority of their products within the New England States. The unweighted average of New England sales by individual companies was 78 per cent of their total business. About one-fifth of the companies, which includes the larger con- cerns, stated that they market their products nationally; but an important proportion of the output of these is absorbed by the New England market. In a few individual cases manufacturers distrib- uted as low as 5 per cent of their product in New England. A small number reported exports of a portion of their output, the average of these being approximately 6 per cent of their total sales. A slight upward trend in these exports is noticeable over the last five years. Distribution methods. — Thire are two principal methods of dis- tribution reported for confectionery products. The majority of the manufacturers reported selling direct to the retailer or through wholesalers; and in some instances both outlets were employed. A few concerns market their product through their own stores or through exclusive distributors, and two companies reported selling direct by mail. Consolidation of selling activities for purposes of economy was indicated by a few companies, and a large number stated that they were emphasizing the improvement of sales and marketing methods. The average cost of selling for the whole group of re- porting concerns was 9 per cent of their total sales. The outstanding problem in this industry appears to be to retain its present large share of the business in the New England region, which it is best fitted geographically to serve. Advertising. — Advertising, in the majority of cases, employs local mediums, in which newspapers and dealer helps are most frequent. A number of concerns use billboards and street-car advertising. 538 INDUSTRIAL STRUCTURE OF NEW ENGLAND Nineteen companies reported that they advertise in national publi- cations. Statements from executives. — The situation faced by this industry and the policies in regard to manufacture and selling are well indi- cated by statements of executives of some leading companies. The recent widespread growth of candy kitchens and the growth in sales of small items, such as the 5 and 10 cent bar goods, appear to be the principal competing factors in the confectionery situation. One large confectionery manufacturer states that the candy kitchens, which in many instances make a high : grade candy that appeals to local taste, through the selection of flavors and centers that are especially palat- able and which can be manufactured and sold fresh within a limited period of time without impairing their keeping qualities, have prob- ably hurt the sale of high-grade package goods more than any other single item, and he believes that they will be a considerable factor in the future of the candy industry. This executive continued : " The buying public seems inclined to favor candies of this type, where the workmanship is of very ordinary grade without much attempt at decoration or particular care in packing; whereas in package candy of national reputation great insistence is placed upon neat workman- ship in the way of decoration, packing, and arrangement of assort- ments." This manufacturer refers thus to the advent of specialties in the manufacture of 5 -cent and 10-cent bar goods : Prior to four or five years ago there was a fairly steady demand for 5-cent and 10-cent bars, which probably represented about 25 per cent of the total buying power. These consisted of chocolate-coated cream-center bars, nut-top bars, and here and there a combination center, and they were usually made by national manufacturers as part of a general line. More recently small fac- tories have started specializing on a single bar, or, at most, three or four 5-cent bars of a special type. They have put back of these a very intensive merchandising and advertising campaign which has increased tremendously the sale of these bars, and in many instances this has been at the expense of the old-line type of confectionery. The sale of these bars has also made con- siderable inroads upon the sale of loose, or bulk, candies and penny goods. This is mainly a tribute to intensive merchandising methods, but it has been made possible by low overhead and large volume resulting from specialization. While the business in bar goods started in a small way its growth and success have been phenomenal, and now these concerns are numbered among the largest in the country. Another manufacturer, referring to the tremendous increase in demand for 5-cent bars, holds that the increase in small outlets, such as street stands, and the frequent change in style of goods afforded in this class, has been responsible for a great deal of speculation on the part of the manufacturers, in a feverish attempt to find a piece that will make a strong appeal to the consumer." From another manufacturer comes this comment regarding retail outlets and transportation costs: During the past five years there has been a great increase 4 in the number of small retail stoics doing their own manufacturing; confectionery chain Stores also have increased their sales volume at a surprising rate, and nation- ally advertised specialties from time to time have taken their share. The New England manufacturer has been forced to face this local competition, while distant distribution lias become even more difficult because of increased freight rates. This freight problem is particularly serious because New England is one of the largest confectionery manufacturing sections, and it is dependent upon national distribution. In consequence of the increased freight rates and era competition there bas been a tremendous backing up of New England products, and intensive Local competition. FOOD MANUFACTURES AND TOBACCO 539 The freight and express charges outside of New England, in the opinion of another executive, represent 5 to 6 per cent of the sales value on the cheaper grades of candy, and : > > to 4 per cent on the higher priced package goods. This handicap was said to be difficult to overcome, in view of the close and narrowing manufacturer's margin on candy, so that such an item, which did not loom large in the past, becomes a serious menace to the sale of candy nationally, where individual concerns do not obtain compensating savings from mass production. In this connection, another manufacturer states that the increase in freight rates since 1914 has tended to localize the market and has restricted sales in territories like Pennsylvania and Ohio, where jobbers prefer to buy from local manufacturers that have de- veloped within the last 8 or 10 years. Another concern, which con- centrated its efforts on the sale of a 5-cent product in New England, finds that marketing and merchandising are becoming more difficult in consequence of intense competition. A company whose product is sold entirely to candy jobbers states that in the past few years the policy of these jobbers has been to buy in smaller lots and more frequently. The company's executive states : " We find that many of these jobbers have difficulty in maintaining sales volume at previous standards, because so many jobbers are en- tering the field. This fact has led to much price cutting and giving of free deals, and, worst of all, the introduction of petty gam- bling schemes both in the 5-cent bar and penny-goods market." Re- garding changes in type of packages, a large manufacturing concern states that the old policy of putting up goods in plain boxes passed during the war, and that the jobbing trade now buys package goods which are put up in attractive lithographed boxes. A number of executives submitted the sales methods employed by their companies. One of these states as follows : Within New England we sell package goods directly to the retail trade, while bulk and bar candies are sold through jobbing houses. Outside New England in certain parts of the country we operate branches, four in all, which sell direct to the trade; and in other parts of the United States we operate through jobbers on an exclusive basis. The entire United States has been zoned, with a district manager who solicits and handles all trade in his terri- tory, assisted by a specialty man or other assistant who works with the jobbers in developing business. This work is supplemented by advertising in the form of window displays, merchandising helps, and newspaper advertising, which is carried on in an intensive way, section by section. The district manager draws a salary and bonus, while our other men are compensated on a commission basis. Our method of studying the market consists pretty largely of determining the. per capita sales of various items in each section ; wherever these are below normal or below the highest which we obtain elsewhere, we endeavor, through our district managers, to ascertain the reasons and bring them into line. In many instances we find that local manufacturers dominate their markets so strongly that an attempt to share it does not seem justified. Another company sells its products exclusively to jobbers, em- ploying 16 salesmen on a straight salary basis with bonus. In the home market, where a greater variety of goods is distributed, the territory is covered more intensively than in distant markets, where there is greater competition and where the company distributes fewer types, the salesman there covering the trade of broader territories less frequently. This company states that its methods of studying the market have been greatly improved. Having a large variety of goods to offer, it combines shipments for various customers so as to 540 INDUSTRIAL STRUCTURE OF NEW ENGLAND obtain carload freight rates by pooling these shipments. Custom- ers are thus encouraged to purchase in substantial quantity for many distant points. The executive of this company states that in- tensive competition has caused many manufacturers to resort to ex- treme measures, such as the use of premiums, free goods, extra dis- counts, prepaid freight, and other valuable considerations, to enlist special selling effort on the part of trade and salesmen. The general effect is said to be demoralizing to the distributing factors in the industry, loss of profit to the manufacturer, and no permanent profit to anyone concerned. The sales organization of another manufacturer, which sells en- tirely to jobbers, consists of five salesmen, working on salary, who cover New England, New York, and Pennsylvania, with commis- sion men in New York City, Philadelphia, and Chicago, in the Southern and Southwestern States, in Ohio, and on the Pacific coast. This company states that it secures its market information mainly through its salesmen and through visits of its sales manager in dif- ferent territories. Another concern employs seven salesmen, on commission basis only, in the territory east of the Mississippi River, generally assigning territory to a man living in that section who has formerly traveled it in the confectionery business. In the sales plan of another concern all New England and the Middle West are cov- ered by three salesmen working on a salary and commission basis, while the South and the extreme West are covered by eight men, working only on commission. Small towns and local territory are covered by four salaried men, designated as store salesmen, who sell in less than case lots. DAIRY PRODUCTS Since most of the production of New England dairies is marketed as fresh milk and cream, the manufacture of dairy products is of secondary importance. (See also p. 20.) Of the total milk produc- tion in 1924 it has been estimated that about 19.6 per cent went into the manufacture of butter, 1.2 per cent into condensed milk, and less than 0.7 per cent into cheese. It was estimated, also, that a total of more than 100,000,000 quarts of local milk is converted annually into cream and butter. Formerly the greater portion of the milk pro- duced in northern New England was made into butter and .cheese — in early years on the farms and later in creameries. MILK, BUTTER, AND CHEESE Year-round production of milk for manufacture is now confined chiefly to the sections with the poorest transportation facilities for moving fresh milk to market. The seasonal surplus in fluid-milk territory is also manufactured to a certain extent, but this is done less and less with the growing demand for sweet cream, which ab- sorbs a large share of the surplus supplies. Very little butter is now manufactured on the farms. Cooperative creameries have been im- portant in northern New England for many years. Within the last decade or- so many new organizations have been formed, especially in Vermont, whirl) are equipped to sell their product either as butter or as cream, according to market conditions. FOOD MANUFACTURES AND TOBACCO 541 The New England output of butter, cheese, and condensed milk had a value of $10,500,000 in L925, providing a market for materials amounting to $8,700,000 and adding less' than $2,000,000 to the regional income from manufacturing activity. There was apparently a considerable reduction in L927. ICE CREAM The manufacture of ice cream is much more important, with a product in 1927 exceeding $27,000,000 in value and adding more than $13,000,000 to the manufacturing revenue of the six States. This is several times the contribution from dairy products in the form of butter, cheese, and condensed milk. Since 1925 there was some in- crease in number of plants, with a reduction in the reported number of wage earners, with increased value of product and increased revenue. The market for ice cream is supplied mainly from small local establishments, but there are numerous fairly large companies in or adjacent to the important centers of population, which have a wide distribution for their product. Manufacture of Ice Cream in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 162 151 40 42 30 31 20 19 20 16 12 11 1,026 1,177 440 578 143 202 193 161 91 74 46 74 1,552 1,707 620 825 209 307 218 203 127 89 71 90 8,215 7,304 2,415 2,431 1,203 1,210 1,411 981 613 354 531 412 15, 279 13, 211 5,096 5,203 2,317 2,376 2,499 1,753 1,157 701 1,054 830 7,064 1925 . o, 907 Connecticut: 1927 2,681 1925-.. -_- 2,772 Rhode Island: 1927 1,113 1925 1,166 Maine: 1927 1,087 1925 772 New Hampshire: 1927 543 1925 347 Vermont: 1927 523 1925 ..„ 418 Total: 1927 284 270 1,939 2,266 2,797 3,221 14, 389 12, 692 27, 400 24, 074 13,012 1925 11, 382 SLAUGHTERING AND MEAT PACKING While meats for consumption in New England are, for the most part, shipped in in dressed form from western points, there is some slaughtering of local supplies ; but the greater part of this activity is the local slaughter of western livestock shipped in by rail. There are slaughtering facilities in almost all the New England cities where local or western animals are killed. In every important city there are branch houses of the western packers, which receive meat in refrigerator cars and distribute it to their surrounding territory. 542 INDUSTRIAL STRUCTURE OF NEW ENGLAND Cattle for local slaughtering come into New England mainly from the Corn Belt States, particularly from the Chicago livestock mar- ket, but considerable numbers come also from New York and Penn- sylvania. The livestock shipped in for slaughtering is converted into meat mostly in the packing houses of greater Boston. The central stock market of New England for generations has been in Boston; this and numerous other cities still retain their local livestock mar- kets. Most of the slaughtering in Boston district is now confined ;to the Charlestown area and is mainly of western animals, but the Boston market still handles much discarded local dairy stock for slaughter. Hogs are shipped to Boston by the trainload to supply local requirements for fresh pork. Considerable numbers of cattle and lambs are likewise shipped in to meet the Jewish demand for fresh-killed meat. The importance of slaughtering and meat packing, including sau- sage making, in New England, is shown by a value of product three times that of the canning and preserving industries, and exceeding these by upward of $2,000,000 in contribution to the manufacturing revenue of the region. In 1927 there were 149 slaughtering and meat-packing establishments in Massachusetts, Rhode Island, Maine, and Connecticut, whose products had a value of $75,758,000, adding more than $11,000,000 to the manufacturing revenue of these four States. The greater part of this industry, as shown by census fig- ures, is in Massachusetts, which represented 86 per cent of the total reported. A practically stable situation is indicated for New Eng- land as a whole since 1925, with minor changes in the different States. Slaughtering, Meat Packing, and Sausage Making in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 97 87 18 19 19 21 15 17 3,635 3,673 242 243 184 184 118 95 4,790 4,682 317 364 226 229 175 158 55, 958 56, 102 4,981 6,163 2,081 1,964 1,402 1,371 65, 335 65, 49C 5,929 7,332 2,622 2,434 1,872 1,787 9,377 L925 9,389 Rhode Island: 1927 948 1925 1,169 Maine: 1927 541 L925 469 Connecticut: L927 470 L925 417 Total: 1927 149 144 183 4, 179 '1, 195 4,464 5,509 5, 432 75, 097 64, 422 85, 600 58, 375 75, 758 77, 043 66, 764 11, 336 1925 ' 11,443 1914 -. 8,389 g.1 Mot Including Connecticut, 4; New Hampshire, 5; Vermont, 1. CANNING AND PRESERVING The canning and preserving of fruits, vegetables, and fish products is mi industry which in L927 contributed about, $S,000 ; 000 to the manufacturing revenue of New England, paid $3,100,000 in wages to POOD \1 AXriWCTCUKS ANM) TOBACCO 543 4,200 wage earners, and turned out products with a gross value ex ceedmg $25,000,000. The two distinct branches of this group one having to do with agricultural products and the other with fishery products, arc oi approximately equal importance as a source of in- come to the region. In the first group there is a considerably greater number of establishments, but only about half as many wage earners. The outlay for materials is approximately the same, while the value lidded by fish products since L925 has become greater than that from fruits and vegetables. From a national standpoint New England is much more impor- tant in the manufacture of fish products than in the canning of fruits and vegetables. These States contribute nearly 25 per cent of the national output of canned and cured fish, but only 2\( 2 per cent of the national production of canned fruits and vegetables.* - Recent changesin the canning and preserving of fruits and vege- tables have been in the line of material reduction. The Dumber of establishments in New England fell off from 148 in 1925 to 117 in 1927, with corresponding reduction in wage earners and in value of output. In Massachusetts there was a slight increase in value of output, but a substantial falling off occurred in Maine and Vermont. In the fish-preserving industry there was little change in activity, as shown by number of establishments and of wage earners. In Maine there was considerable falling off in value of output and in net revenue, although Massachusetts shows some increase in gross output. The distribution of canning and preserving activities, according to the product, is shown for 1925 in the following table from United States census statistics. In the value of total output, Maine was in the lead, with 54 per cent of the New England total ; Massachusetts and Rhode Island together contributed 41 per cent. These three States represented 95 per cent of the New England total. Products of Canning and Preserving Industries in New England States in 1925 Item New England total Maine Massachu- setts and Rhode Island Vermont Connect- icut New- Hampshire Canned vegetables and soups: Cases 2, 852, 745 $8, 382, 747 $5, 648, 646 479, 639 $1, 731, 091 2, 308, 164 $8, 849, 141 47, 837, 506 $5, 581, 246 $815, 918 2,211,394 $6, 251, 301 $243, 508 370, 121 $1, 337, 357 2, 035, 973 $7, 606, 521 9, 962, 367 $823, 572 $415, 884 290, 318 $1, 141, 264 $4, 844, 694 109, 518 $393, 735 272, 191 $1, 242, 620 37, 875, 139 $4, 757, 674 $400, 034 224, 801 $633, 114 $56,000 16, 807 $51, 759 $504, 444 2,211,394 Value -. $305, 309 Pickles, jellies, preserves, and Canned fruits: Canned fish, etc: Cured fish: All other products: Value Total value $31, 008, 789 $16, 678, 143 $12, 780, 020 $689, 114 $556, 203 $305, 309 Interviews with executives of some of the large canning com- panies brought out the statement that the greater proportion of the product is marketed and consumed within New England. It- was 544 INDUSTRIAL STRTJCTTTKE OF NKW KX(JI,\NI) the opinion that a much larger potential market for their product exists than is now supplied, although the variable production of different years and the unstable price situation have kept down the acreage. Production of sweet corn could be increased moderately in Maine and in other parts of northern New England if justified by market conditions. Because of the broken topography of the corn-producing section of Maine the production is restricted to small acreages, which limit the size of operations of individual canners. With few exceptions the canning factories in Maine are local enterprises developed by the initiative of local groups of farmers. Largely on account of the small-unit production it has been difficult to bring about cooperative efforts among the canners of the State. The outstanding problem of the canning industry arises from the extreme seasonal variation which limits activities to a few weeks or months of the year. These activities reach their maximum in the early fall. The cost of equipment and its rapid depreciation in the face of operation for only a short period each year are difficulties peculiar to this industry. Success in overcoming the seasonal varia- tion has been attained by some companies through the addition of supplementary products not dependent upon local agriculture, such as beans and brown bread. Improvements are reported in individual cases in the line of production control and in standardization of prod- ucts. Sales of representative reporting companies showed a moderate increase in 1923, a slight falling off in 1924, and a substantial increase in 1925. The reason most frequently given for sales increases has been the adoption of new sales methods, and the reason given for de- creased sales was competition from outside sections. The principal channels of distribution indicated by reporting companies are whole- sale dealers and selling agents, although other channels are used in individual cases. The logical markets for New England canned goods are the Atlan- tic coast region and the Pacific coast, where there is a differential ad- vantage in freight costs from water transportation. It was the opinion that in these areas New England canners can compete suc- cessfully with the large-scale producers in the interior States. The principal competition comes from Illinois, Wisconsin, and New York. An executive of one of the leading canning companies stated that less than 10 per cent of the company's product is marketed in the New England States. He stated also that only a small portion of all the canned corn consumed in New England is produced there. Com- petition comes from the product of other sections because of their lower price. In his opinion there is a large undeveloped market for Maine canned products in the cities along the Atlantic seaboard. Most of this company's output is sold under its own label, but a portion is sold unlabeled to wholesalers who use their own private brand. Its output is sold mainly to large wholesalers through the agency of brokers who operate on a commission basis. These are widely distributed throughout the country. Advertisements are car- ried in the leading women's magazines and sometimes in daily papers in the Larger centers. In addition to this, sales-promotion campaigns are conducted in cooperation with local wholesalers and retailers, sometimes augmented by house-to-house canvassing in communities, FOOD MANUFACTURES VXD TOBACCO 545 where the goods are being newly introduced, as a means of educating the consuming public. Replies from a representative number of New England canners of fruits and vegetables showed that sales within New England in 1925 averaged 57 per cent of their total business. The average output in that year was 72 per cent of the maximum capacity. The pro- portion of the product sold under the canner's private label averaged 55 per cent. The principal methods of marketing the product Of these representative companies was throng!) wholesalers or selling agents. A few reported some sales direct to consumers. Canning and Preserving in New England States, 1J)25 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture FRUITS AND VEGETABLES Massachusetts: 1927 32 31 78 99 7 10 5 3 435 417 916 1,067 86 90 89 27 509 495 662 786 52 71 53 22 4,367 3,736. 3, 517 5,194 270 456 279 195 6,623 6,071 5, 323 . 7,839 436 688 556 305 2,257 2,335 1,806 2, 645 166 232 277 110 1925 _ Maine: 1927 _- 1925 Vermont: 1927 -._ 1925 -_. Connecticut: 1925 New Hampshire: 1925 New England: 1927 117 148 144 95 2,436 2,403 62 61 24 24 1,437 1,690 1,604 955 80,924 85, 866 1,888 1,845 917 864 1,183 1,428 565 286 62,310 67, 427 905 1,180 1,015 908 8,153 9,860 3,980 1,244 355, 186 385, 573 4,105 6,214 4,313 3,591 12, 382 15, 460 6,081 2,251 572, 346 616, 070 6,589 8,838 6,513 6,048 4,229 5,600 2,101 1,007 217, 160 230, 497 2,485 2,624 2,201 2,458 1925 1 1914 1904 ... United States: 1927 . 1925 FISH, CLAMS, AND LOBSTERS Maine: 1927 _. 1925 Massachusetts: 1927 1925 New England: 1927 86 85 42 202 337 319 2,805 2,709 4,420 3,713 12, 650 10, 530 1, 919 2,087 1,645 1,512 8,106 7,234 8,417 9,804 9,487 6,488 42, 892 39, 194 13, 103 14, 886 13, 629 9,779 65, 082 61,061 4,686 5.082 1925 1 1914 4, 142 1904 3,291 22, 190 United States: 1927 1925 21, 867 1 Notincluding Rhode Island, 1 establishment. VEGETABLES In the canning 1 of vegetables the principal item is sweet corn. Small quantities of peas and tomatoes are put up by New England canneries. The sweet corn canned in the three northern States of New England had a value in 1925 of approximately $5,300,000; of 1 Discussion of the production of crops for canning is presented in the section on agri- culture, p. 39. 546 INDUSTRIAL STRUCTURE OF NEW ENGLAND this amount Maine produced 85 per cent and Vermont LO per cent. In 1926 there were 38 corn-canning factories in the State of Maine. In the production of sweet corn northern New England has a high reputation for the quality and flavor of its product. In recent years peas have been grown and canned to a limited extent. Packing began in a small way in 1923, when 18,000 cases were put up in Maine. This was increased to 87,000 cases in 1924, and to 163,000 cases in 1925 : there was a sharp reduction in 1926 to 42,000 cases, attributed largely to difficulties of the growers with the green pea louse, which cut down the yield. Tomatoes are canned to a limited extent in the vicinity of Guilford, Conn. BLUEBERRIES The canning of blueberries is likewise a distinctive industry in the State of Maine. It is confined to Washington and Hancock Counties, where a combination of favorable climatic and soil conditions, together with cheap land, makes the growing of blueberries com- mercially profitable. Canneries are scattered throughout this area, bringing to the growers of the region about $750,000 a year. This industry provides a means of livelihood to much of the scattered population in this section and is the sole or chief source of income to many families. The ripe berries are sold by the growers according to the market at harvest time, as determined by competi- tion anlong the different canneries. Formerly most of the crop was put up in large cans for sale to restaurants and bakeries. More recently the practice has tended toward putting up blueberries in smaller cans and jars for the family trade. The equipment for the canning of blueberries is comparatively simple and inexpensive, and the limit of the market is said to be determined only by the available supply of the fruit. In addition to blueberry canning in Maine, the canning of cran- berries has assumed some importance in the Cape Cod region of Massachusetts in the last few years. Canning of apples is also of some importance in Maine. FISH CANNING AND CURING Establishments engaged in the canning and curing of fish 2 in 1927 had an output in Maine and Massachusetts valued at upward of $13,000,000, of which Maine contributed 58 per cent and Massachu- setts 42 per cent. Maine is the leading State in the canning of fish, while Massachusetts leads in salt curing. Fish canning along the coasi of Maine is concentrated largely at Eastport and Lubec, on the eastern extremity of the United States coast, where some 14 or 15 large packing establishments employ in the active packing season an average of 100 persons each, of which 70 per cent are women. In L925 Maine canned 2.0)56,000 cases of sardines and other fish products. According to State laws, the packing season in Maine extends from the 15th of April until the 1st of December. The (ish-packing plants usually begin their activities about the 1st of May and run with ;i smal] force until July; then they carry on full activities until October, according to the run of fish delivered. The work of trimming, boning, and packing fish is done mainly by women, who are paid on >« piecework ba 'Production and marketing of fresh fish are presented in the section on fisheries, p. 85. FOOD MAM i ATTUBES AND TOBACCO 547 The principal center for salt and processed fish is Gloucester, Mass., which is the most important salt-fish packing center in the United States. In Gloucester and in East Boston fish are salted, dried, smoked, filleted, and canned, and the refuse is made into glue, fish oil. and fertilizer. A number of large companies are engaged there in the buying, curing, and marketing of cod, haddock, and other species. A portion of the product finds its market in the Southern States and the West Indies, but the greater part of it is marketed in the eastern part of the United States. The large companies at Gloucester have a national distribution of their product. The marketing of cured fish has undergone considerable change in the last few years. Efforts at market extension show the necessity of educating people in the interior of the country to the merits of fish as a food. One of the large packing companies has built up. a widely extended business based entirely on sales of package fish direct to the consumer, by mail. This business has been expanded by extensive advertising in magazines and by direct mail. A recent development of great importance in the direct marketing of fish has been the use of insulated containers for mailing, whereby fresh fish are subjected to a quick freezing process w T hich, without refrigeration and without impairing the tissue, enables them to be kept in condition for several days while in transit. A material ex- tension of the trade in package fish has come about in recent years through sale of cut fillets in 1-pound cartons packed for the retail trade. A campaign to popularize fish as a food, by means of booklets of recipes, attractive posters, and store displays, has been supported by farsighted members of the trade, with profitable results. MISCELLANEOUS FOOD PREPARATIONS The manufacture of such food products as prepared cereals, bak- ing powder, shortening, potato chips, macaroni, and other pre- pared foods represented a value in the four States (Massachusetts, Connecticut, Vermont, and Rhode Island) leading in such production in 1925 exceeding $15,000,000 and added to their manufacturing rev- enue $6,500,000, of which Massachusetts contributed about 75 per cent. The value of the product in 1925 was nearly twice that in 1914, and the number of wage earners was considerably greater. A substantial falling off is noted in 1927, as indicated in the following table. Manufacture of Miscellaneous Food Preparations in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 45 68 6 20 7 12 633 857 78 133 95 50 708 949 76 165 98 59 3,877 5,989 311 924 1,573 268 8,592 11, 337 628 1,473 2,064 402 4,715 1925 5,349 Connecticut: 1927 318 1925 549 Vermont: 1925 491 Rhode Island: 1925 133 548 INDUSTRIAL STRUCTURE OF NEW ENGLAND FLOUR, FEED, AND OTHER MILL PRODUCTS The manufacture of flour and of cereal products for New England consumption occurs almost entirely outside New England. These products are shipped in from Buffalo and western points in the finished form. There is some milling, however, in small establish- ments in certain of the rural sections. The product of the six New England States had an aggregate value in 1925 of approximately $18,000,000 and added to the manufacturing income $2,730,000. Vermont overshadowed the other States, with 46.5 per cent of the total value of the product and 55.8 per cent of the value added by manufacture. The product of Maine and New Hampshire together was about one-half that of Vermont, and that of Massachusetts was less than half the value of product in Vermont. Considerable reduc- tion in this minor industry in each State of New England is ob- served in 1927. The output of the six New England States had approximately the same value in 1925 as in 1914 and in 1904. In view of the wide difference in price levels in these years, however, the figures indicate a pronounced reduction in the importance of this industry. Manufacture of Flour, Feed, and Other Mill Products in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 32 39 31 45 42 44 13 25 8 10 11 22 135 119 126 192 76 134 68 91 18 45 21 38 175 150 142 229 71 149 66 95 21 33 28 43 3,746 3,277 2,654 6,845 2,004 2,599 849 1,146 514 785 287 603 4,380 3,724 2,929 8,369 2,233 2,906 1,030 1,389 582 859 352 739 634 1925 447 Vermont: 1927 275 1925 1,524 229 Maine: 1927 1925 307 New Hampshire: 1927 181 1925 242 Rhode Island: 1927 67 1925... 74 Connecticut: 1927 66 1925 136 Total: 1927 _ 137 185 562 592 444 619 903 1,036 503 699 511 526 10, 054 15, 255 17, 785 15,524 11, 506 17, 985 17, 793 17, 415 1,453 1925 1 2,730 1914 2 2,008 1904 2... 1,891 1 Includes only establishments doing i 2 Includes only establishments doing i business of $5,000 or more, business of $500 or more. FOOD MANUFACTURES AND TOBACCO MANUFACTURE OF BEVERAGES 549 The manufacture of beverages in 1925 gave rise to a product exceeding $20,000,000 in value and adding more than $11,500,000 to the manufacturing income of New England. This industry em- ployed 1,865 wage earners and provided a market for materials amounting to $8,500,000. It is of some importance in each State, but Massachusetts represented 75 per cent of the New England total. A relatively slight reduction in activity is noted in 1927, as shown for the individual States in the figures of the following table. These figures do not include mineral waters. The New England production of mineral waters and soda waters, reported by the Bureau of the Census in 1914, had a value of only $3,877,000 and gave employment to 1,036 workers. Manufacture of Beverages in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 206 182 94 85 38 38 44 36 31 26 9 8 1,182 1,183 271 334 151 145 95 92 78 90 27 21 1,651 1,759 355 480 179 189 105 94 90 118 25 23 5,305 6,131 938 1,101 433 479 405 291 360 405 72 85 14, 160 14,754 2,372 2,601 1,100 1,111 873 626 749 774 190 185 8,855 1925 _ 8,623 Connecticut: 1927 1,434 1925_. 1,501 Rhode Island: 1927 668 1925__. 631 Maine: 1927 468 1925 335 New Hampshire: 1927 389 1925 369 Vermont: 1927 118 1925 100 Total: 1927 422 375 417 270 1,804 1,865 1, 036 919 2,406 2,663 625 516 7,512 8,491 1,717 1,222 19, 444 20, 051 3,877 3,028 11,932 1925 11,559 19141 2,160 1904 1,806 - i Mineral and soda water. TOBACCO MANUFACTURE Tobacco manufactures, including cigars, cigarettes, and chewing tobacco, with a value in New England in 1925 exceeding $11,650,000, contributed to the manufacturing income $6,500,000, and gave em- ployment to 2,864 wage earners, who were paid $3,379,000 in wages. Seventy per cent of the production was in Massachusetts and 20 per cent in Connecticut. The number of wage earners employed in 1925 was only slightly more than half that of 1914, and the value of the product was less in the later year. The figures for 1927 show a substantial reduction since 1925. 61232°— 30 36 550 INDUSTRIAL STRUCTURE OF NEW ENGLAND Manufacture of Tobacco, Cigars, and Cigarettes in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 53 61 37 43 11 11 12 1,619 1,869 647 664 120 124 207 1,896 2,356 766 763 145 135 125 3,064 3,732 843 929 215 205 274 6,912 8,212 2,265 2,370 474 492 579' 3,849 1925 4,480 Connecticut: 1927 1, 421 1925 1,441 Maine: 1927 259 1925 287 Rhode Island: 1925 305 Total: 1927 101 127 499 744 2,386 2,864 5,474 5,722 2,806 3,379 4,212 3,587 4,122 5,141 5,312 3,967 9,651 11,653 12, 451 10, 433 5,529 19251 6,512 19142 7,139 1904 6,466 i Not including New Hampshire, 5; Vermont, 2. 2 Not including Connecticut, 4 establishments. CHEMICALS AND DRUGS The manufactures which are based upon the use of chemical materials or chemical processes include a considerable number of diverse products which are grouped here for convenience, despite the wide diversity in processes of manufacture and in type of market. This group of industries is estimated to have added in 1925 from $135,000,000 to $150,000,000 to the total revenue of New England, and to have contributed about 5 per cent of the total revenue from all New England industries. The contribution of this group was approximately equal to that of all food manufactures, it having provided employment to some 25,000 wage earners, who are esti- mated to have been paid between $30,000,000 and $35,000,000 in wages. Materials consumed by the chemical and drug industries in 1925 provided a market for various raw products, including fuel, power, and other supplies, estimated at not less than $150,000,000. The aggregate gross value of the output in 1925 is estimated to be between $275,000,000 and $300,000,000. Accurate comparisons of the trend in this group of industries are difficult because of the incompleteness of census figures for various items in the individual States. The following table, however, affords broad comparisons of the different items in 1927 and 1925 for such data as are available. As the totals are generally more complete for 1925 than for 1927, the actual differences between the two years for all New England are not necessarily so great as appear from the incomplete figures presented in the table. Chemical and Drug Industries in New England, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Manufactured gas: 1927 95 101 29 38 72 91 3 3 3 50 44 6,897 6,882 1,092 1,244 1, 195 1,454 4,292 1,077 947 928 735 10, 206 10, 282 1,483 1,574 1,260 1,477 4,618 1,615 1,537 1,246 933 26, 614 22, 025 15, 115 13, 354 7,238 8,828 11, 105 32, 185 30, 860 8,985 7,408 64, 348 59, 017 34, 483 30, 387 22, 241 25, 726 21, 018 40, 291 36,003 16, 860 12, 562 37, 734 1925 36, 992 Soap: 1927 19, 367 1925 17, 033 Prepared medicines, etc.: 1927 15,003 1925— - 16, 899 Ammunition: 1925 9,912 Petroleum refining: 1927 8,106 1925 5,143 Paints and varnish: 1927.. 7,874 1925 5, 154 551 552 INDUSTRIAL STRUCTURE OF NEW ENGLAND Chemical and Drug Industries in New England, 1925 and 1927 — Continued Estab- lish- ments Wage earners Thousands of dollars Item and year Wages Cost of materials Value of products Value added by manu- facture Chemicals, n. e. c: 1927 22 38 22 16 12 12 62 59 18 20 36 37 20 21 12 13 5 22 29 5 9 20 24 31 1,898 2,912 661 460 775 718 429 440 669 748 283 373 108 278 78 117 92 123 210 365 105 148 74 281 2,425 3,950 709 479 1,043 948 558 528 869 320 422 380 103 238 110 152 139 131 225 403 122 190 84 333 7,574 7,496 5,236 3,975 4,243 2,197 2,310 2,401 3,735 3,874 3,834 4,048 504 2,145 1,831 2,379 729 621 1,366 357 1,674 1,629 397 1,764 14, 633 17, 357 8,520 6,900 6, 831 6,031 5,272 4,917 5,765 6,376 5,607 5,754 1,534 6,788 2,621 3,341 1,681 1,295 2,282 1,177 1,239 2,756 1,002 5,239 7,059 1925 9,861 Fertilizer: 1927 3, 284 1925 2,925 Glue and gelatin: 1927 2, 588 1925 2,833 Blacking, stains, and dressings: 1927 2,963 1925 2,516 Grease and tallow, not including lubricat- ing grease: 1927 2,029 1925 2,502 Tanning materials and dyestuffs: 1927 1,773 1925 1,706 Perfume and cosmetics: 1927 1,030 1925 4,643 Oils, n. e. c: 1927 789 1925 962 Ink, printing: 1925 952 Druggists' preparations: 1927 674 1925 916 Fireworks: 1925 820 Mucilage, paste, and other adhesives: 1927 565 1925 1,127 Cleaning and polishing preparations: 1927 605 1925 3,476 Total: 1927 508 586 16, 392 22, 696 22, 386 28, 706 123, 096 128, 940 232,542 255, 312 111, 443 1925_. .. 125, 372 As a source of manufacturing income, as well as in the employ- ment of wage earners, gas manufacture overshadows any other activity of this group, with a product having a gross value in 1927 of upward of $64,000,000 and contributing to the revenue of New England some $37,700,000, as shown by value added by manu- facturing. The making of soap also is important, its products ex- ceeding $34,000,000 in value and adding more than $19,000,000 to the manufacturing revenue of the region. Prepared medicines and compounds are nearly as important as soap manufacture. The making of various other chemical products, mainly for in- dustrial uses, comprised an output of $14,600,000 and contributed upward of $7,000,000 to the manufacturing revenue by the processes ol manufacture. The making of paints and varnishes is of con- siderable importance, with an output approaching $17,000,000 in value and with a net contribution not far from $8,000,000. Petro- leum refining in Massachusetts alone contributed a similar amount; this phase of the industry is important also in Rhode Island. The CHEMICALS A.ND DTU r GS 553 miscellaneous group includes cleaning and polishing preparations, fertilizers, glue and gelatin, dyestuffs and tanning materials, inks and stains, fireworks, and kindred products. GAS MANUFACTURE The manufacture of illuminating and heating gas follows closely the distribution of population in different parts of New England. In 1927 there were 95 plants in the six States — a reduction from 101 in 1925 — which gave employment to some 6,900 wage earners and paid upward of $10,000,000 in wages. There was an increase from 1914 of 25 per cent in the number of w r age earners employed and of 137 per cent in the total value of products, accompanied by a reduction of 39 in number of plants. This industry provided a market for materials — amounting to upward of $26,000,000 — in which fuel is a large item, and contributed $37,700,000 to the manu- facturing revenue of the region. The total output of these gas com- panies in 1927 had an approximate value of $64,350,000, representing 13 per cent of the total value of manufactured gas for the whole United States. The importance in the different States of New England for 1925 and 1927, with comparative totals for 1914 and 1904, is shown in the following table. Manufacture of Illuminating and Heating Gas in New England States, 1925 and 1927 Estab- lish- ments Wage earners . Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 41 45 20 20 4 4 11 11 10 11 9 9 4,079 4,229 1,447 1,330 766 771 280 245 234 214 91 93 6,047 6,206 2,262 2,069 1,089 1,192 350 337 330 347 128 130 16,202 13, 888 5, 184 4,124 3,204 2,336 907 819 773 591 343 266 38. 658 36. 659 13, 320 11,504 7,512 6,478 2,113 1,947 1,875 1,620 870 809 22, 456 22, 771 8, 135 7,380 1925 Connecticut: 1927 1925 Rhode Island: 1927 4,308 1925 4,142 New Hampshire: 1927 1,206 1925 1, 128 Maine: 1927 1,102 1925 1,028 Vermont: 1927... 527 1925... 543 Total: 1927.. _ 95 101 134 130 6,897 6,882 5,519 3,220 10, 206 10, 282 3,778 1,873 26, 614 22, 025 9,044 4,760 64, 348 59, 017 24, 907 13, 232 37, 734 1925 36, 992 1914 15, 863 1904 8,472 The industry covers establishments, both private and municipal, which are engaged primarily in the commercial manufacture of gas delivered through mains for illuminating, household, or industrial purposes. In addition to its primary product, the by-products of the industry — coke, tar, and ammonia — are of substantial importance for use in other industries of New England. 554 INDUSTRIAL. STRUCTURE OF NEW KNOLANM) This is a fairly stable industry, with a local consuming market which varies little from year to year. The trend of sales indicated in replies by reporting companies showed an average aggregate in- crease of 2 per cent a year since 1921, except for a similar decline in 1924. Additions to plant capacity since 1921 were indicated by two-fifths of the number reporting. The actual 1925 output of reporting com- panies, representing nearly one-half of the total New England em- ployment, averaged 54 per cent of their stated maximum capacity. The cost of advertising, as reported, averaged 1.9 per cent of total sales, and other selling costs amounted to 18.3 per cent. SOAP MANUFACTURE The manufacture of soap centers chiefly in Massachusetts, although the industry has some importance also in Connecticut and slight activity in Rhode Island. In Massachusetts there were 23 estab- lishments in 1927 with an output having gross value of ap- proximately $33,500,000. This industry added $19,000,000 to the State's manufacturing revenue, employing more than 1,000 wage earners and paying some $1,400,000 in wages. In comparison with 1925 a slight increase in employment is noted, also a substantial increase in value of output and in manufacturing revenue. No data for Connecticut are at hand for 1927, but in 1925 there were five establishments with an aggregate output approaching $4,000,000 in value. In Rhode Island soap manufacture shows some reduction since 1925. These three States contributed about 11 per cent of the total national soap output in 1925. Manufacture of Soap in New England. States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 23 24 5 6 9 29 38 44 68 1,027 981 187 65 76 1,092 1,244 627 859 1,396 1,235 237 88 102 1, 483 1,574 346 14, 437 10, 884 1,527 678 943 15,115 13, 354 3,405 33, 497 25, 007 3,885 986 1,495 34, 483 30, 387 6,210 19, 060 1925 14, 123 Connecticut: 1925 3,258 Rhode Island: 1927 308 1925 552 Massachusetts and Rhode Island total: L927 19, 367 Massachusetts, Connecticut, and Rhode Island: 1925 _ 17, 933 1**14 2,805 1904 1 Not including Vermont, 2. This industry shows a remarkable growth in Now England in the last decade. The number of wage earners in 1925 was approximately twice that in 19] I. and the value of the output was nearly five times Unit of 1014. Massachusetts produces about half as much soap as New Jersey, and is surpassed al§0 by Ohio and New York; but in CHEMICALS and DRUGS 555 value added by manufacture Massachusetts is exceeded only by New Jersey. One of the Leading soap-manufacturing establishments of the United States is located in Cambridge, Mass., and (his plant con- tributes a large portion of the New England production. A charac- teristic of this industry is its concentration in Large establishments. Most of the New England establishments, however, are small com- panies that consume local materials and supply local markets. The principal raw materials are grease and tallow, which are purchased locally as by-products of other industries, and oils and alkalies. Reports from representative companies, comprising 40 per cent of all the New England wage earners in the soap industry, show that all of those reporting from Massachusetts except one concern made 80 per cent or more of their sales within New England, while the Connecticut companies made the majority of their sales outside. One-third of the companies reported exports which, exclusive of shipments to Canada, ranged from 1 to 11 per cent of their total sales. The large companies have national distribution of their product. Main distribution channels were reported to be direct to the con- sumer or through wholesale dealers. Textile soaps are usually sold direct to consuming manufacturers, while other soaps are sold mainly to wholesalers and to some extent direct to retailers. Advertising is largely through local mediums. The average advertising expense, as stated by reporting companies, was 13.5 per cent of their aggregate sales, and their selling cost, exclusive of advertising, was 15.4 per- cent. The sales trend of reporting companies showed for the aggre- gate a steady increase in the last few years, their total in 1925 being 26 per cent greater than that of 1921. MEDICINAL AND TOILET PREPARATIONS This group of industries includes products which are retailed principally through drug stores and embraces three closely related lines of manufacture, including (1) druggists' preparations, (2) pre- pared medicines and compounds, and (3) toilet preparations, such as perfumes, cosmetics, shaving creams, and tooth pastes. The impor- tance of these industries as a source of income to the region is en- hanced by the fact that the value added in the manufacturing processes comprises nearly tw T o-thirds of the gross value of products. These industries consist, for the most part, of old established con- cerns which started in New England in the home of their originators. One of the largest enterprises of its kind in the whole country, how- ever, is of comparatively recent origin. Some of the concerns have branch outlets widely distributed throughout the United States and Canada, as well as in South America and Europe. MANUFACTURE IN INDIVIDUAL STATES The products of these industries of New England had in 1925 a total value of $36,898,000, contributed by 164 establishments, and rep- resented 7.3 per cent of the national total in this line of manufac- ture. Approximately 60 per cent of this activity was centered in Massachusetts, and 30 per cent in Connecticut, while the rest was distributed among the other four States. 556 INDUSTRIAL STRUCTURE OF NEW ENGLAND A striking growth is shown in the manufacture of proprietary compounds and prepared medicines since 1914, from a value of Jess than $1,000,000 to more than $25,000,000. There was an increase in value added in 11 years from less than $700,000 to nearly $17,- 000,000 and a doubling in number of wage earners employed. In the manufacture of toilet preparations there was a decrease in the number of wage earners, accompanied by a doubling in the value of the product, while the value added by manufacture in 1925 was four times that in 1914. In druggists' preparations there was a re- duction in the number of wage earners, but a moderate increase occurred in output and in value added by manufacture. Since 1925 the activity in these lines appears to have been generally sustained, according to census figures, as shown in the tables. Manufacture of Prepared Medicines and Compounds in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 54 53 11 9 10 9 8 5 4 1,017 1,048 188 132 134 46 56 21 7 1,102 1,095 182 110 117 49 56 18 10 6, 477 6,956 994 616 625 145 153 78 23 20, 189 19, 529 3,828 1,597 1,519 454 498 298 54 13, 713 1925 12, 574 Connecticut: 1925 2,835 981 Vermont: 1927 1925 894 Maine: 1927.. 309 1925 345 Rhode Island: 1925 220 New Hampshire: 1925 31 Total: 1927 72 91 31 20 1,195 1,454 609 198 1,260 1,477 353 81 7,238 8,828 262 370 22, 241 25, 728 954 1,398 15, 003 1925 16, 899 1914 1 692 1904... 1,028 i Xot including Maine, 2; New Hampshire, 2. Manufacture of Perfumery, Cosmetics, and Toilet Preparations in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Ma achu 1927 20 18 6 108 96 180 103 88 150 504 418 1,726 1,534 1,260 5,528 1,030 L926 841 Connecticut: 1926 3,801 Total: 1926 ' 24 40 26 278 60 238 131 27 2, 145 1, 185 576 6, 783 3, 305 800 4, 643 1914 1,120 1 -01 225 I Not Including Maine, 1; Rhode I 'land, I. * Not including Maine, I; Vermont,, i. CHEMICALS \\i' DRUGS 557 RAW MATERIALS The principal raw materials are chemicals, crude drugs, alcohol, and essential oils, which are said to be purchased, for the most part, outside New England. An important part of the product is likewise marketed outside New England. Replies from a representative num- ber of concerns gave an unweighted average of 51 per cent as the portion sold within New England. SALES TRENDS AND DISTRIBUTION General increases in sales were reported by two-thirds of these con- cerns, which were credited to extension of territories, the addition of new lines, and new sales methods. Some companies reported de- creased sales, particularly of veterinary remedies, which were at- tributed to the declining use of horses. Decreased sales of prepared medicines were also reported in several instances, and were attributed to improvement in general health and to changes in popular attitude. The distribution of products was stated by almost every reporting manufacturer to be either through wholesale houses or direct to the retailer, both methods being often employed. Practically all the product is marketed under a brand or trade-mark. The use of ad- vertising mediums was indicated in three-fourths of the replies, in which national distribution by direct mail was the most common practice, supplemented by other mediums. INDUSTRIAL CHEMICALS In the manufacture of chemicals for industrial uses New England holds a minor place, contributing less than 4 per cent of the national total ; yet this activity in 1925 added some $10,000,000 to the manu- facturing income of the region. In that year there were in New England 45 establishments w T hich gave employment to some 3,000 wage earners, who received upward of $4,000,000 in wages and made a product with a gross value considerably in excess of $17,000,000. A considerable falling off is noticed in 1927. Statistics for Massachu- setts and Rhode Island are presented in the following table. Manufacture of Miscellaneous Chemical Compounds in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by- manu- facture Massachusetts: 1927 _ 15 31 7 7 1,580 2,664 318 248 2,040 3,598 385 352 6,581 6,585 993 911 12, 920 15, 716 1,713 1,640 6, 339 1925 9,131 Rhode Island: 1927 720 1925 _ 729 Total: 1927 22 38 1,898 2,912 2,425 3,950 7, 574 7,496 14, 633 17, 357 7,059 1925 > 9,861 i Excluding Connecticut, 4; Maine, 1; New Hampshire, 2, 558 [xNDUSTRIAL STRUCTURE OF NEW ENGLAND With a few exceptions manufacture is for the New England mar- ket. The average proportion of New England sales by a representa- tive group of reporting manufacturers was 87 per cent of their total business. With the exception of chemicals for use in the textile in- dustries, these companies showed a general increase in their New England sales in the past few years. Distribution is generally either direct to the manufacturing consumers or through wholesale houses. The raw materials used by chemical manufacturers comprise a con- siderable variety of items, whose sources are principally outside New England. A number of companies reported improvements in manu- facturing practice along the line of industrial research. CLEANING AND POLISHING PREPARATIONS The manufacture of cleaning and polishing preparations for use on metals and wood, and of blackings, stains, and dressings, contrib- uted in 1925 some $6,000,000 to the manufacturing income of New England, with a product having a gross value of upward of $10,000,- 000. Connecticut is the leading State in this line, particularly in silver and other metal polishes, its seven establishments in 1925 add- ing nearly $3,000,000 to the manufacturing revenue of the State. No figures for this State are available for 1927. Outside Connecticut the establishments are mainly small concerns with a few wage earners each. In Massachusetts there were 59 con- cerns making blacking, stains, and dressings, with an output valued at $4,916,000 in 1925, which contributed $2,500,000 to the manufac- turing revenue of the State. The activity increased to 62 establish- ments in 1927, with an increase in product to $5,270,000 and a net revenue amounting to $9,962,000. RAW MATERIALS As raw materials most of the manufacturers reporting in this group purchase oils and waxes. In the majority of cases oils were said to be purchased within New England, while waxes were reported to be obtained from New York and from foreign countries. There is a great variety of other purchased materials. SALES TRENDS AND DISTRIBUTION The general trend of sales in this line in the last few years has been downward. In the case of shoe dressings, this is attributed largely to changes in shoe styles, particularly for women. One manu- facturer stated that 66 per cent of the business in shoe polish was formerly for women's shoes, and that the reduction in the amount of leather now used has greatly curtailed the market for this type of polish, although that for men's shoes has continued good. The few plant- whose -ales have increased during the last few years credited their advance to the adoption of new sales methods and the addition of new products. The average proportion of New England sales by reporting companies was 59 per cent of total sales. One concern stated thai it was centering its sales on the Middle West, because it found there a much better market than i r i New England. Various methods of distribution are indicated by manufacturers. The largest number sell direct to manufacturers of shoes or of silver- CHKAI [CALS AND DRUGS 559 ware, or to large consumers of floor oil, but nearly as many concerns report selling through wholesalers or jobbers. ' The majority re- ported national advertising, in which the chief mediums are direct- mail and trade journals. The practice in regard to the use of brands and trade-marks is far from uniform, but the majority indicated that they brand the most of their product. PAINT AND VARNISH The manufacture of paints, pigments, fillers, varnishes, and lacquers was represented in 1927 by 40 establishments in Massachu- setts and 10 in Connecticut, whose products had a gross value ap- proaching $17,000,000, which added nearly $8,000,000 to the manu- facturing revenue of the two States. There are plants also in Rhode Island and Vermont, for which no figures are available. Although the contribution of these activities is relatively unimportant in the national total, it has considerable significance to this region because of the large consumption of products of this nature within New England, where it is the general practice to keep buildings well and frequently painted. A healthy increase since 1925 in the New Eng- land production is indicated by the census figures for these two States, presented in the following table. Manufacture of Paints and Varnishes in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 . 40 35 10 9 666 631 262 104 873 802 373 131 6,960 6,582 1,960 827 12, 920 11,350 3,940 1,213 5,895 1925 4,768 Connecticut: 1927 1,979 1925 386 Total: 1927 50 44 38 47 928 735 499 521 1,246 933 268 278 8,985 7,408 2,712 2,108 16, 860 12, 562 5,091 3,336 7,874 1925 5,154 1914.__ 2,379 1904 1,228 This is an industry of long standing in New England. The aver- age period of operation indicated by special replies from repre- sentative establishments was 33 years, and there were several which had been in business from 60 to 80 years. The principal materials — oil, leads, and pigments — are purchased outside New England. The trend of sales was upward and had been fairly regular since 1921 for a majority of these concerns. The average proportion of sales made within New England, as indicated by reporting companies, was 76 per cent of the total business. By a number of concerns growth in New England business was attributed to increased sales emphasis on the New England market. Others credited this growth to a national increase in demand, accompanying the building ac- 560 INDUSTRIAL STRUCTURE OF NEW ENGLAND tivity of the last few years. Some manufacturers reported a falling off in sales, which they attributed to local industrial conditions. Distribution outlets are almost evenly divided among retailers, in- dustrial consumers, and wholesalers. Local advertising was indi- cated by about one-half of the replies, and national advertising by one-third. PETROLEUM REFINING There were 3 petroleum refineries in Massachusetts and 2 in Rhode Island in 1927. The Massachusetts refineries employed upward of 1,000 wage earners and contributed upward of $8,000,000 to the manufacturing revenue of the State, with a product valued at more than $40,000,000. No separate data of production are avail- able for Rhode Island. The raw material consists principally of crude petroleum, which is brought to the refineries in vessels by tide- water. The principal refined product is gasoline, which is dis- tributed from the refineries throughout the New England market by tank cars and trucks to local distributors. A substantial increase in the activity of the refineries of Massachusetts is observed from 1925 to 192T. OTHER CHEMICAL INDUSTRIES AMMUNITION AND EXPLOSIVES Of a number of other industries in the general chemical group which are of considerable aggregate importance in New England the most prominent is the manufacture of ammunition and explosives, which in 1925 was represented by 3 establishments in Connecticut, whose output in that year exceeded $21,000,000 and contributed nearly $10,000,000 to the manufacturing revenue of that State. In 1925 there were also 2 establishments in Massachusetts making am- munition and 1 making explosives, for which there are no figures of production. This industry thus added considerably more than $10,000,000 in 1925 to the manufacturing revenue of New England. Besides this, there were eight establishments making fireworks, which added $1,000,000. Five of these were in Massachusetts, 2 in Con- necticut, and 1 in Maine. There are no separate statistics for 1914, but in 1904 there were five Connecticut establishments making ammu- nition, with a product valued at $15,394,000, adding to the manufac- turing revenue of the State $7,591,000 in that year. GLUE, GELATIN, AND MUCILAGE The making of glue, gelatin, mucilage, and other adhesives in New England was represented in 1925 by 36 establishments and a product of approximately $9,000,000, making a net addition to the manufacturing income exceeding $4,000,000. Thirty-two of these concerns were located in Massachusetts ^ 2 in Connecticut, and 1 each in Maine and New Hampshire. This industry is an important and profitable outlet for the by-products of fish and meat packing. Glue and gelatin produced in Massachusetts had a value in 1927 of $6,831,000; in 1925, of $6,030,000; in 1914, of $2,589,000; and in 1904. of $1,463,000. CHEMICALS AND DRUGS GREASE AND TALLOW 561 The rendering of grease and tallow from fat, bones, and meat scraps is an important by-product activity connected with the processing of hides and skins and other materials. In L925 there were 31 New England establishments in this line, with an output estimated at up- ward of $8,000,000. Twenty of these were in Massachusetts, 3 each in Connecticut and New Hampshire, 2 each in Rhode Island and Vermont, and 1 in Maine. The whole New England output was approximately equal to that of New York State, which in turn was surpassed by Illinois. These figures are exclusive of the by-products of slaughtering and meat-packing establishments. The value of grease and tallow produced in Massachusetts in 1927 was $5,765,- 000; in 1925, $6,376,000; in 1914, $2,668,000; and in 1904, $3,022,000. FERTILIZERS The making of fertilizers from the waste of fish-packing estab- lishments and from slaughtering and packing plants was reported in 1927 by 22 concerns with an output valued at $8,520,000, which represented about 3.5 per cent of the national production. In Massa- chusetts and Connecticut there were 7 establishments each, and 8 in Maine, an increase of 6 plants in these three States as compared with 1925. Considerable increase is noted in total activity, as is shown in the following table. Manufacture of Fertilizers in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 7 5 7 6 8 5 429 242 161 169 71 49 451 242 191 191 67 47 2,863 1,587 1,639 1,933 734 455 5,041 3,114 2,408 3,024 1,071 762 2,178 1925 1,527 Connecticut: 1927 769 1925 1,091 Maine: 1927 ... 337 1925 307 Total: 1927 22 16 661 460 709 479 5,236 3,975 8,520 6,900 3,284 1925-. 2,925 TANNING MATERIALS AND DYESTUFFS In the manufacture of tanning materials and dyestuffs there were 36 establishments in 1927 in Massachusetts and Rhode Island whose output had a gross value of $5,600,000, compared with a production in 1925 of $5,700,000, in 1914 of $2,500,000, and in 1904 of $1,500,000. There were 26 establishments in Massachusetts, 11 in Rhode Island, and 2 in Connecticut, the total of 39 having increased from 25 in 1914. Massachusetts and Rhode Island together contributed about one-sixth of the national production. Massachusetts is surpassed 562 INDUSTRIAL STRUCTURE OF NEW ENGLAND nationally only by New Jersey. These figures do not include the making of synthetic dyes, which are included in the group of in- dustrial chemicals. ANIMAL AND VEGETABLE OILS The manufacture of animal and vegetable oils was represented in 1927 by 12 establishments in Massachusetts, with a product valued at $2,621,000, in addition to 3 concerns in Rhode Island, for which there are no production figures. INK In the manufacture of writing ink Massachusetts stands out as one of the two leading States of the country, sharing first place with Illinois. One of the leading ink companies of the country, located in Cambridge, Mass., has a world-wide distribution of its product. The product of the two Massachusetts establishments surpassed in 1925 that of New York State. In the manufacture of printing ink there were six New England establishments in 1925 with an aggregate output of about $1,700,000. In comparison Avith other sections New England is relatively unimportant in this product. Figures of New England production of writing and printing ink are not available for 1927. MISCELLANEOUS MANUFACTURES MUSICAL INSTRUMENTS In the manufacture of musical instruments New England still con tributes a considerable portion of the national total, although it has lost much of its former importance. It is estimated that the making of musical instruments and parts in 1925 contributed in the neighbor- hood of $15,000,000 to the manufacturing revenue of New England. in that year there were 12 New England establishments making pianos, of which 10 were in Massachusetts and 2 in Connecticut; also 8 establishments making organs, of which 5 were in Massa- chusetts, 2 in Connecticut, and 1 in Vermont. Besides these there were 36 concerns engaged in the production of various materials and parts for musical instruments, of which 28 were in Massachusetts and 8 in Connecticut. The manufacture of instruments and parts in Massachusetts oc- cupied all together the activities of 43 establishments in 1925, which gave employment to 3,389 wage earners, with an output valued at upward of $15,000,000, and a contribution to the manufacturing revenue of the State exceeding $9,000,000. In Connecticut there were, in all, 12 establishments in these lines. No production fig- ures are available for the 4 concerns manufacturing organs and pianos, but 6 concerns making piano and organ materials gave em- ployment to 1,116 wage earners, making a product valued at nearly $4,700,000 and adding to the State's manufacturing revenue upward of $2,500,000. These figures are exclusive of the making of phonographs, in which there were 9 establishments in Massachusetts and Connecticut in 1925, which employed 1,246 wage earners, making products valued at $7,443,000 and adding $5,000,000 to the manufacturing revenue of these two States. Eighty-five per cent of this activity was con- tributed by 5 concerns in Connecticut. In piano manufacture a substantial growth in activity is shown since 1925 in the 10 Massachusetts establishments, with increases in number of wage earners and in gross value of output. The net revenue to the State in 1927 exceeded that of 1925 by upward of $1,000,000. There was considerable falling off, however, in the activi- ties of plants making materials and parts for pianos and organs, both in Massachusetts and Connecticut. In comparison with 1914 there has been a material reduction in the importance of these activi- ties to New England. In the manufacture of phonographs^somc change is noted since 1925 in Massachusetts. In the lack of 1927 pro- duction figures for Connecticut no statement is attempted regarding changes in that State since 1925. The output in 1914 of pianos, organs, and other musical instru- ments and materials in Connecticut and Massachusetts was repre- 563 564 INDUSTRIAL STRUCTURE OF NEW ENGLAND sented by 71 establishments. The plants in these two States gave em- ployment to 6,173 wage earners and turned out products valued at $13,443,000, contributing $7,170,000 to the manufacturing revenue of the two States. In that year there were 52 establishments in Massachusetts and 19 in Connecticut, in addition to 5 in Vermont, 2 each in Maine and New Hampshire, and 1 in Rhode Island. The following summary table of available production figures for musical instruments and phonographs in 1927, 1925, and 1914 shows the general New England situation in these lines. Manufacture of Musical Instruments in New England, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Pianos: Massachusetts— 1927 10 10 1,648 1,326 2,418 2,046 3,657 2,700 8,645 6,614 4,989 3,914 1925 Piano and organ materials: Connecticut— 1927 7 6 13 16 1,062 1,166 667 1,114 1,090 1,140 855 1,322 1,801 2,113 870 1,734 3,918 4,689 2,246 4,149 2,117 1925 2,576 Massachusetts — 1927 1,376 1925 2,415 Total: 1927 20 22 1,729 2,280 1,945 2,462 2,671 3,846 6,164 8,837 3,493 1925 4,991 Organs and orchestrions: Massachusetts— 1927 5 5 8 12 284 276 229 301 535 532 308 363 448 416 221 366 1,642 1,529 788 1,103 1, 195 1925 1,113 Other instruments and materials: Massachusetts— 1927 567 1925 » 747 Phonographs: Massachusetts— 1927 3 4 5 250 291 955 294 318 1,159 309 601 1,838 1,257 1,286 5,156 948 1925 685 Connecticut— 1925 4,318 Total: 1925 9 1,246 1,476 2,439 7,443 5,003 Musical instruments, pianos, organs, and materials, 1914: Massachusetts 52 19 3,906 2, 267 2,510 1,277 8,213 5,230 4,511 Connecticut 2,659 Total 2 71 6,173 3,786 6,273 13, 443 7,171 i N'ot Including Connecticut, 2 establishments. « Not Including Maine, 2; New Hampshire, 2; Rhode Island, 1; Vermont, Replies from a representative number of manufacturers of musi- cal instruments regarding production and sales in recent years in- dicated a general upward trend from 1921 to 1925, with the excep- tion of phonographs, for which the trend was decidedly downward. [ncreasing sales of pipe organs were attributed by some concerns to the increased popularity of the organ for motion-picture houses and radio concerts, and to the replacement of many old organs with ELLANEOUS MANUFACTURES 565 modern instruments. On the the other hand, a manufacturer of piano actions made the statement that western competition has driven the piano manufacturers out of Now England. Distribution of musical instruments, as indicated by reporting companies, was said to be mainly direct to churches and* theaters or to retail music dealers, and, in some eases, through the companies' own stores and agents. Materials for instruments were reported to be sold generally direct to the instrument manufacturers., The reports indicated that advertising was almost wholly national in character, mainly through the medium of trade journals, supple- mented by magazines and direct mail. The average advertising expense of these reporting concerns was 5.7 per cent of their aggre- gate sales, and other selling expenses were 4.7 per cent. SPORTING AND ATHLETIC GOODS The making of fishing rods and tackle, equipment for baseball, football, basket ball, tennis, golf, and polo, in addition to snow shoes, toboggans, and other equipment for winter sports, exercising machines, and other athletic and sporting goods, assumes substan- tial importance in New England, with establishments reported in 1925 in each State. There were 33 concerns making these goods in that year, of which 16 were in Massachusetts, 4 each in Maine, Connecticut, Rhode Island, and Vermont, and 1 in New Hamp- shire. This industry in Massachusetts gave employment in 1925 to 1,887 workers, with a product exceeding in value $10,750,000, and added more than $6,000,000 to the manufacturing revenue of the State. Massachusetts contributed one-fourth of the value of the national production in this line. Of the 17 establishments in the other States production figures are available only for 4 in Maine. It is conservatively estimated that the total production of all manu- factures of sporting and athletic goods in New England in 1925 exceeded considerably $15,000,000 in value, and that it added from $9,000,000 to $10,000,000 to the manufacturing revenue of New England. Manufacture of Sporting and Athletic Goods in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 15 16 4 4 1,962 1,887 78 62 2,698 2,555 78 55 3, 968 4,689 108 89 8,189 10, 763 236 189 4,220 1925 6,074 Maine: 1927 128 1925 100 Total: 1927_ 19251 1914 2 19 20 24 2,040 1,949 1,304 2,776 2,610 781 4,076 4, 798 2,005 8,425 10, 952 3,477 4,349 6,174 1,472 1 Not including Connecticut, 4; New Hampshire, 1; Rhode Island, 4; Vermont, 4. 2 Not including Connecticut, 3; New Hampshire, 2; Rhode Island, 2; Vermont, 2. 61232°— 30 37 566 INDUSTRIAL STRUCTURE OF NEW ENGLAND Available figures for 1927 for Massachusetts show sonic increase in number of wage earners, but a falling off both in gross value of out- put and in net revenue, presumably in consequence of a lower level of prices. This New England industry has shown substantial growth in the last few years, both actually and in relation to the country as a whole. The combined sales reported by representative manu- facturers showed a decidedly upward trend from 1921. Employment for the industry as a whole appeared to be fairly uniform, with little seasonal variation, in consequence of the wide variety of articles made by different establishments. Most of the reporting companies have their principal market out- side New England, the proportion of sales in the section averaging one-third of the total reported output. Some export business was indicated by individual concerns, ranging from 1 to 45 per cent of total business. It appears to be the general practice to use brands or trade-marks on the product. Advertising was usually reported as national in character, mainly through the medium of trade jour- nals, supplemented by other mediums. Most of the companies re- ported sale of their output through wholesalers or jobbers. Some, however, reported direct sales to retailers or to the consumer, and a few through exclusive distributors. TOYS AND GAMES There were in 1925 nearly twice as many establishments making toys and games in New England as those making sporting and athletic goods and their aggregate importance was nearly as great, with a total employment of about 3,400 workers and an output approach- ing $12,01)0,000 in gross value, which added to the manufacturing revenue about $7,400,000. This industry is well represented in each of the States. Manufacture of Toys and Games in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture lusetts: 1927 27 26 14 17 4 4 4 6 7 1, 761 J,. r >25 957 903 344 428 314 302 168 Jf)7 1,740 1,384 972 887 299 377 329 278 148 154 2,924 2,390 1,294 1,203 3X4 550 228 200 178 166 7,718 5,929 3, S25 3, 640 1,090 1,217 cm 648 568 455 4,794 )U2r> 3, 738 2, 53 1 ( !onnecticul : 1027 1925 ..._-... 2,438 Maine: 1927 707 1925 667 Vermont: 1027 464 1925 442 I unpshire: 1927 390 1926 289 Total 1027 56 58 47 3, 539 3, 375 2,212 ■A, 489 3, 080 989 5, 007 4,515 1, 639 13, 893 11,889 3, 932 8,886 1925 i 7, 374 1914 » 2,298 : \ot Including Rhode I Ian'!, 2. I Not Including Maine, 1. M [SCELLANBOUS M \ N CTFACTURES T)()7 In 1927 there were 27 concerns in Massachusetts, 1 ! in Connecticut 6 in New HampsRire, 1 in Maine, and 5 in Vermont; Rhode [sland was not reported. Activity in L927 was considerably greater than in 1925, and each of the States except Maine shared in the increase. A very substantial growth is evident in the past decade. The number of workers engaged in this line in 1925 was one-half greater than in 1914, while the value of the output was three times thai of 1914 and the manufacturing revenue was more than three times as "Teat s EMERY WHEELS AND OTHER ABRASIVES In the manufacture of emery wheels and genera] abrasive mate- rials Massachusetts produces more than 60 per cent of the total reported national output. There were 14 establishments in that State in 1927, which gave employment to 1,753 workers, making a product exceeding $15,000,000 in value and adding more than $9,000,000 to the manufacturing revenue of the State. There were also I establish- ments in Connecticut and 1 in Khode Island. This industry has made remarkable growth in New England since 1914. There were in the earlier year the same number of estab- lishments in Massachusetts as in 1925 but only half as many wage earners, with an output of only $2,300,000, representing less than one- sixth of the 1925 value and less than one-sixth of the manufacturing revenue. Census figures for 1927, in comparison with those for 1925, show some reduction in activity. (See table, p. 573.) Replies received from 10 concerns making abrasive materials, rep- resenting most of the New England employment, showed that the combined sales trend of these companies from 1921 to 1925 was gen- erally upward. The majority of sales were reported to be made outside New England; the proportion made in this section averaged 34 per cent of total business. Distribution was said to be mainly direct to industrial manufacturers, with other outlets as secondary channels. OPTICAL GOODS In the manufacture of spectacles, eyeglasses, lenses, and their frames and mountings, Massachusetts contributed approximately one- third of the national production in 1925, with 19 establishments en- gaged in this line, employing 2,569 wage earners, which made products exceeding $10,750,000 in value and added to the manufac- turing revenue of the State upward of $7,000,000. The 1914 output of optical goods in Massachusetts was represented by 13 concerns, whose aggregate employment was 200 workers less than the State total for 1925, and the aggregate output was 37 per cent of the value in the later year. In 1925 there were 4 similar establishments re- ported for Rhode Island, with a product valued at $622,000, and 1 in Connecticut, for which there are no production figures. Census figures for 1927 are available only for 5 establishments in Rhode Island, whose activity shows a healthy increase over that of 1925. (See table, p. 573.) One of the leading companies of the United States in this line has an extensive plant at Southbridge, Mass., from which it makes national distribution of its product. Several of the larger manu- 568 INDUSTRIAL STRUCTURE OF NEW ENGLAND facturers in this line market their output throughout the United States, and the greater proportion of the goods made by the industry is sold outside New England. The principal distribution is reported to be made through wholesale dealers, or direct to the retail trade PROFESSIONAL AND SCIENTIFIC INSTRUMENTS In 1925 there were 28 New England concerns making professional and scientific instruments, of which 21 were in Massachusetts, 4 in Connecticut, aiid 3 in Rhode Island. In Massachusetts this industry paid upward of $500,000 in wages, making a product exceeding $2,500,000 in value and contributing nearly $2,000,000 to the manu- facturing revenue of the State. In this State there was a falling off in the number of workers as compared with 1914, accompanied by a doubling in value of the output, while the manufacturing revenue in 1925 was between two and three times that of 1914. Substantial increase in activity is indicated for 1927, in comparison with 1925. (See table, p. 573.) BRUSHES In the manufacture of brushes there were 40 establishments in Massachusetts, Connecticut, and Rhode Island in 1925, which pro- duced 25 per cent of the value of the national output in this line, giv- ing employment to 1,941 workers, making a product approaching $11,500,000 in value and adding more than $7,000,000 to the manu- facturing revenue of these three States. The value of the produc- tion of 8 establishments in Connecticut was not far from half that of 25 concerns in Massachusetts, but Connecticut had less than one- third as many wage earners. There were 7 small establishments in Rhode Island which contributed a minor portion. In addition to these, 2 establishments each were reported in Maine and Vermont and 3 in New Hampshire, without production figures. Compared with 1914, this industry in three New England States showed in 1925 a reduction in number of establishments from 58 to 47, an increase of about 300 wage earners and an increase of 165 per cent in value of product. The manufacturing revenue in 1925 was between three and four times that of 1914. Census figures for 1927 show that in Massachusetts there was some reduction in wage earners and in net revenue in comparison with 1925, although there was a slight increase in gross value of product. Replies regarding production and marketing conditions in the past few years were received from manufacturers representing prac- tically the entire brush industry in New England. The average reported output in 1925 was 72 per cent of maximum capacity. Em- ployment was fairly uniform throughout the year, and a high pro- portion of workers was reported to be on an incentive basis of wage payment. Combined sales of these companies showed substantial increases in L922 and L923, but a decline in 1924 and 1925. The reason most frequently given by concerns whose sales had been de- clining was competition with other sections; while those having in- creased sales attributed the increase generally to reduction in manu- facturing costs and to extension of selling territories. MISCEL] VtANTJF u n 569 Manupactueb of Brushes Otheb Than Rubber i\ New England States L925 am) L927 lisli- ments Thousands of dollars State and year Wages materials Value ol products Value added by manu- facture Massachusetts: 1927 23 25 8 6 7 l , 228 1,451 129 61 I, 145 126 55 1,562 76 3,676 L93 213 l. 557 1925 Connecticut: L925 2 l L3 Rhode Island: 1927 l Ifi L925 L28 Total: 2 States, 1927 29 40 50 1,280 1,941 1,663 1,390 1,926 816 3, 170 4,363 2, 152 11, 1ST 4,347 1 (175 3 States— 1925 1 7. 124 1914 2 I B95 1 Not including Maine, 2; New Hampshire, 3; Vermont, 2. - Not including Maine, 3; New Hampshire, 2; Vermont, 3. The market in this industry is divided between New England and outside sections; the unweighted average of New England sales of reporting companies was 58 per cent of their individual business. Use of a company brand or trade-mark was indicated for approxi- mately 72 per cent of the product. Replies did not indicate exten- sive advertising; less than one-third of them stated the employment of national mediums, and even a smaller proportion indicated local advertising. For the group the advertising costs in 1925 repre- sented a little less than 3 per cent of their aggregate sales. The channels of distribution, as indicated in the replies, were through wholesalers, direct to industrial consumers, direct to retail- ers, and through sales agents. One of the leading New England concerns has made an outstanding feature of direct distribution of its product to the individual user, through house-to-house sales by local representatives, in which it has met with unusual success. FANCY AND NOVELTY ARTICLES In the making of fancy articles which can not be classified in other industries, such as beadwork, novelties of celluloid, metal, paper, and wood, lamp shades and articles of similar nature, there were 82 establishments in Massachusetts, Rhode Island, Connecticut, and Maine in 1927, which employed upward of 4,000 workers, turn- ing out a product exceeding $14,000,000 in value and adding about $7,850,000 to their manufacturing revenue. This shows a very sub- stantial increase since 1925. The value of the product in 1925 was approximately three times that for these States in 1914, and the manufacturing revenue more than trebled in that 11-year interval. 570 INDUSTRIAL STRUCTURE OF NEW ENGLAND Manufacture of Fancy and Novelty Articles in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture Massachusetts: 1927 48 34 20 14 11 11 3 2,346 1,218 1,174 902 508 180 13 2,519 1,250 906 782 521 180 14 4,280 2,136 1,456 930 677 339 11 9,078 4,924 3,505 2,382 1,659 802 31 4,798 1925 2,788 2,049 Rhode Island: 1927 1925 1, 452 Connecticut: 1927 982 1925 ... 463 Maine: 1927 20 Total: 4 States, 1927 82 59 48 4,041 2,300 1,260 3,960 2,212 640 6,424 3,406 1,264 14, 273 8,108 2,707 7,848 3 States— 1925 i 4,702 1914 2___. 1,442 1 Not including Maine, 2; New Hampshire, 2. 2 Not including Maine, 1; New Hampshire, 1; Rhode Island, 2; Vermont, 1. HOUSE-FURNISHING GOODS The manufacture of various house-furnishing articles that are not included in other classes of products is an activity of considerable importance in Massachusetts and Connecticut. This group of in- dustries provided employment in 1927 to 2,285 wage earners in 75 es- tablishments in these two States and Rhode Island, with products of a gross value of nearly $16,000,000, which contributed upward of $6,000,000 to their manufacturing revenue. Considerable increase in activity is noted since 1925, as shown by number of wage earners and by value added by manufacture, although there was considerable falling off in gross value of product in consequence of substantial reduction in cost of materials in the later year. Manufacture of House-Furnishing Goods in New England States, 1925 and 1927 Estab- lish- ments Wage earners Thousands of dollars State and year Wages Cost of materials Value of products Value added by manu- facture . etts: 1927 62 8 8 6 1,422 1,396 806 660 57 65 i, 193 1,320 696 559 43 42 6, 443 9,581 3,018 2, 621 137 137 10, 743 13,577 4, 940 3,861 222 213 4,300 1926 3,966 Connecticut: 1927 1,922 1 926 J, 241 Rhode 1 -land: 1927 84 1925 76 Total: 1927 .- 75 71 2, 285 2, 121 1,933 1,921 9, 599 12, 339 15,905 17, (i. r )l 6, 306 5,311 : \''»t Including Maine, i; \ew Hampshire, i; Rhode Island, 2; Vermont,!. M tSCELLANEOTJS max CJFACTUEES 571 ROOFING MATERIALS , In the manufacture of roofing materials other than those in- cluded in the wood, mineral, or paper industries, Massachusetts was represented in L925 by six establishments, which employed 507 wage earners, making a product valued at $9,000,000 and contributing nearly $4,500,000 to the manufacturing revenue of (hat State. There was also one establishment in Connecticut Tor which there are no production figures. No separate eensns data for Massachusetts are available for L927. (See table, p. 574.) BUTTONS The manufacture of buttons from pear] or shell, vegetable ivory, celluloid, horn, or metal, including cloth-covered and shoe buttons, was represented in 1925 by 28 New England establishments. This industry is of principal importance in Connecticut, where there were then 13 concerns, which added $1,750,000 to the manufactur- ing revenue of the State. In 1927 there were 10 establishments in this State which contributed approximately the same revenue. There were 11 establishments in Massachusetts in 1925 which added some- thing more than $250,000 to the net income of that State. In these two States there were 1,027 wage earners, whose aggregate product had a value in 1925 of nearly $3,200,000 and contributed $2,000,000 to their manufacturing revenue. There were also 2 establishments in Rhode Island and 1 each in Maine and New Hampshire. In this industry there was a reduction of 500 workers from 1914 to 1925, accompanied by an increase of about $1,000,000 in the value of the product and of $700,000 in the contribution to the manufacturing revenue. (See table, p. 574.) The combined sales trend of a group of representative button manufacturers showed a considerable drop in comparison with 1923. The output of reporting plants in 1925 averaged 68 per cent of capac- ity. The majority of these companies stated that sales to New Eng- land customers comprised only 5 to 10> per cent of, their total output. The principal market is said to be in New York City. Distribution is mainly direct to manufacturers of clothing and other apparel, but most of the companies reported the sale of a portion of their output through jobbers and the usual other distribution agencies. COMBS AND HAIRPINS There were 19 establishments in Massachusetts making combs and hairpins in 1927, employing 960 workers, making a product valued at $2,938,000, and contributing $1,733,000 to the State's manufac- turing revenue. Activity in this State was practically the same as in 1925, but there was a reduction of three establishments. The prin- cipal manufacturing center is Leominster, which is known as the " home of the comb industry." Massachusetts contributed two-thirds of the national product in 1925 and about the same proportion in 1914. In that State the industry showed a reduction of 1,000 em- ployees as compared with 1914, accompanied by a falling off of 24 per cent in the value of the output and a slight increase in its contri- bution to the State's manufacturing revenue. (See table, p. 574.) 572 INDUSTRIAL STRUCTURE OF NEW ENGLAND Replies from representative concerns show a sharp falling off in their aggregate sales from 1921 to 1925. All reporting companies showed decreased sales in that period, and all attributed the falling ' off to the same reason — the change in the style of hairdressing, especially the vogue of bobbed hair, which has greatly curtailed the use of hairpins and hair ornaments. The market was reported to be mainly outside New England, with a group average of 14 per cent of total sales made within these States. Small exports were indi- cated by half the reporting companies, generally not more than 1 per cent, although a few reported upward of 10 per cent. Sales were prevailingly made through wholesalers or jobbers, with some sales direct to the retailer. The situation confronting comb and hairpin manufacturers is not a distinct New England problem but is one of style, which is determined largely by the mode of hairdressing for women. GLASS PROCESSING The*processing of glass by cutting, beveling, bending, grinding, engraving, staining, and ornamenting, including cut-glass tableware, druggists' and scientific glassware, and leaded or stained-glass win- dows, is an industry of considerable importance, in which there were 34 New England establishments engaged in 1925. The output of 7 concerns in Connecticut and 24 in Massachusetts had a value of $3,250,000 and contributed considerably more than $1,500,000 to their manufacturing revenue. The output of Connecticut had a greater value than that of Massachusetts, although the latter State employed twice as many wage earners and added a greater amount — nearly $1,000,000 — to its manufacturing revenue. There were also 2 con- cerns in Rhode Island and 1 in Maine with no production figures. New England shows a considerable increase since 1914 in its share of the country's value of product. Census figures for 1927 show considerable reduction below those for 1925. (See table, p. 574.) Sales trends of reporting companies show a pronounced increase from 1921 to 1923, which was exceeded by the volume of 1925. Their production in the latter year was generally low, as is shown by a group average of only 59 per cent capacity. Most of the plants in Massachusetts, however, were operating at 80 per cent capacity or above, while those in Connecticut averaged considerably lower. Increases in total sales volume were reported by three-fourths of the Massachusetts companies and by one-fourth of the Connecticut concerns. The increase in building, together with some decrease in importations of stained glass, were cited as reasons for increasing business; while decreases were attributed to changes in popular de- mand arid increased competition. The majority of sales were said by most of the reporting companies to be made to the New England market; hut several Connecticut plants stated that half or more of their sales were made outside New England. The average New England sales for* the reporting group was 79 per cent of total business. Sales of glass Tor buildings and windows were reported ;i- made either direct to the consumer or through architects and con- tractor-, ('ut glass and tableware were said to be sold mainly direct through retailers and, in some cases, through exclusive dis- M [SCELLANEOUS MANUFACTURES 573 tributors. Advertising, as reported, was entirely local in character, consisting mainly of dealer helps and direct mail Less than hall of the companies stated the use of a brand or trade-mark. SUMMARY OF UNCLASSIFIED MANUFACTURES In addition to the foregoing items that have been discussed indi- vidually, there are a number of other lines where the production is represented in New England either by a lew establishments of some size or by several small concerns. These contribute substantial amounts to the manufacturing revenue of individual localities throughout the region. Their variety doe- not admit of separate consideration here, but a number of the more important ones for which figures are available are included in the following summary table. Importance of Various Unclassified Manufactures in New England States, 1925 and 11)27 Estab- lishments Wage earners Thousands of dollars State, item, and year Wages Cost of materials Value of products Value added by manu- facture Emery wheels and other abrasives: Massachusetts— 1927 . 14 12 4 4 1,753 1,831 57 74 2,795 3,027 64 78 5,510 6,017 369 446 13, 482 15, 138 642 765 7,971 1925 9,120 Connecticut— 1927 273 1925 319 Total: 1927 18. 16 12 18 33 11 1,810 1,905 902 385 683 373 2,859 3,106 599 700 1,101 655 5,879 6,464 866 898 1,050 326 14, 124 15,903 2,299 2,536 3,913 2, 321 8, 245 1925 1 9,439 Massachusetts, 1914 2 _ 1,433 Paving material: Massachusetts, 1927_ 1,638 Massachusetts, Connecticut, and Rhode Island, 1925 s Connecticut, 1927 2, 863 ],995 Total, 1927 29 19 5 4 758 2, 569 292 216 1,356 2,895 279 237 1,224 3,636 387 258 4,858 10. 783 961 622 3,633 Optical goods: Massachusetts — 1925 7, 145 Rhode Island — 1927 573 1925 364 Total: 1925 4 23 13 26 21 23 2,785 2,356 643 425 599 3,133 1,390 871 576 417 3,895 1,196 948 603 550 11,405 3,993 3,853 2,590 1,262 7,510 2, 798 Professional and scientific instruments: Massachusetts — 1927 . -.- 2, 906 19256 1, 986 1914 7 712 1 Not including Rhode Island, 1. 2 Not including Connecticut, 2; Rhode Island, 1. 3 Not including New Hampshire, 1; Vermont, 1. 4 Not including Connecticut, 1. .• _ i 5 Not including Connecticut, 4; Maine, 1; New Hampshire, 2; Rhode Island, 6. e Not including Connecticut, 4; Rhode Island, 3. i Not including Connecticut, 6; Maine, 1; New Hampshire, 1; Rhode Island, 2. 574 INDUSTRIAL STRUCTURE OF NEW ENGLAND Importance of Various Unclassified Manufactures in New England States, 1925 and 1927— Continued State, item, and year Estab- lishments Wage earners Thousands of dollars Cost of materials Value of products Value added by manu- facture Models and patterns: Massachusetts, 1927 Connecticut, Rhode Island, and Mas- sachusetts, 1925 § Connecticut, 1927 Rhode Island, 1927 Total, 1927 Roofing material: Massachusetts, 1925 Buttons: Connecticut, 1927... Connecticut and Massachusetts, 1925 9 Massachusetts, 1927 Connecticut and Massachusetts, 1914 io. Combs and hairpins: Massachusetts— 1927... 1925 1 1914H Glass processing: Massachusetts— 1927 1925 Connecticut — 1927 1925. Total— 1927 1925 1 2 Jewelry and instrument cases: Massachusetts, 1927 Massachusetts and Rhode Island, 1925 13 Rhode Island, 1927 Total, 1927 Signs and advertising novelties: Massachusetts, 1927 Connecticut, Maine, and Massachu- setts. 1925 " C ' onnect icut , 1927 Maine, 1927 Rhode Island, 1927 Total— 1927 Soda-water apparatus: Massachusel ts, 1925 Surgical appliances: Connecticut, 1925 18 . 729 132 50 1,322 243 74 545 81 27 641 507 796 1,027 1,348 960 929 1,944 163 414 241 209 404 623 458 872 264 722 338 493 80 27 15 258 232 1,143 645 867 999 64 723 263 562 335 282 415 4,789 1,118 1,154 122 1, 205 1,107 2,074 328 450 739 1,213 597 845 496 756 242 1,067 1,663 672 1,037 225 738 436 630 125 33 26 761 122 33 620 546 602 1,649 2,077 2,959 501 131 2,709 9,005 2,866 3,192 320 2,226 2,938 2,856 3,727 1,008 1,437 1,294 1,838 2,301 3,275 1,624 2, 936 666 2,291 1,284 2,182 458 109 55 1,906 1,816 2,281 1,769 2,414 420 104 2,293 4,216 1,748 2,038 198 1,337 1, 733 1,749 1,653 554 626 1.234 1,612 953 1,899 441 1,394 902 1,422 336 76 46 1,215 632 ■ Nol Including Maine, l. Not Including Maine, 1; Rhode Island, 2; New Hampshire, 1. 1 Not including New Hampshire, I; Rhode island, 2. • including Connecticut. I; Rhode Island, l. w Not including Maine, 1; Rhode Island, 2. deluding < tonneel icut, 2. 15 Not Including New Hampshire, l; Rhode Island, 3. deluding Maine, i; Massachusetts, 12; Rhode island, 1. Part V.— BUILDING AND CONSTRUCTION The construction of buildings, public works, streets, and highways is one of the economic activities of New England thai is of substan- tial importance as a source of income to many persons who contribute labor, services, and materials. In this sense const met ion may be re- garded as parallel to the manufacturing activities of the region, although it is in a distinct and individual field. In this activity the raw materials used in building or construction work are turned into a finished manufactured product in the form of the completed struc- ture or project. The principal difference between this type of activ- ity and manufacturing is that the finished product remains perma- nently at the place where it is fabricated and that it is a product of continuous utility. BUILDINGS AND PUBLIC WORKS The present discussion undertakes to present the importance of the different types of building and construction in the New England States and their distribution throughout the territory. The market wdiich these activities afford for the principal materials — lumber, cement, iron and steel, brick, and sewer pipe — is considered in the analysis of the respective manufacturing industries, in which they have already been discussed. Marked activity in building and construction has been shown by the New England States during recent years. This has followed the general trend of building activity in the United States. During the past six years the value of contracts awarded in New England has averaged in the neighborhood of $400,000,000 annually. Building contracts in this section since 1923 compare very favorably with the increased activity in other parts of the United States. The value of the awards in 1925 was 43 per cent greater than that of 1923, and in 1926 it was 32 per cent above 1923. The figures presented and analyzed here are based upon reports of the F. W. Dodge Corporation of New York. The first table shows the valuation, the number of square feet of floor space, and the number of projects in different classes according to contracts awarded in each year from 1923 to 1928. This table is followed by an analysis of this construction in the individual States. 575 576 [NDUSTRIAL STRUCTURE OF NEW ENGLAND •too MOO ' - O Q ClOC «QQ l-OO * O O 'OOO 'COO f-OO MSO CO I- OS ON >0 i-h 00 CN CN O i r C© 00 r-l i-h hh O 00 IO XI- hh Tt" >o ioo cn cr* i -. i - CN CO* rHOO* CO* S88 388 toccof (dc^ •* O i-h a N.O o ^ o o iO00 CN OTf Tfn 5C CO O O «-<^C3 !T<3 « 0 «o oo oTco §8 §85 M rHO CM rH oo co^ (NOON OCN oTco" 388 288 iC CN CO CO r- ■ilO WOO© r-H r-H £ 5» r-l O * COCO , S88 SS o| (MOO COO o 1ON00 oTooco D O CN HO lO N 00 H GO - ca I S"||| rag J ra # | Bs gjg ra|§ •qz^t !5~ • 0..2-S fe a.2cfe £.25 1 1-2 5 9 2=29 2S5 9 25r^ I §Ii2 I §i •g g S >• -a £ 5 > -a fc 5 > -a E 5 > -a 5? E > r.i ii.I'INc a.\ii CONSTRUCTION 577 O C3 8 SS *• © « - - ~ 36 l \3 ► 2 ~- CM — r-. iCO 30 rtr 888 888 288 H lO Tt< OS« JC 1 - • ". once C8 g CM OsCM CM -1 O) i-i O NOOO — ■ 1 - 00 10 ss osoo 000 r-00 oc o o 0000 r-,oo CM CM iO ihOJN h(OC) £88 888 HiON 1-1 OS CO cc o OS CO X S88 £88 388 hocc os »o ro b. Tf O —1 CM i-H t<- 00 CO IOOO i-HOO 00OO TflOO COO o 00 o c MOO COt^--^ "^ t>» CO ■>- — c o 4 c 3 1 5a ..55 'c' C" c Sfi e'er fc|.2 "o c £ ill 3,2 n c ad ® - e'er S 3,27, 73 £ fc > ./*> ..fcfc> 7 H - 3 .-,3 C C" U ISi ..fcfc> a! a; s ~ 'c' Z* — . 'o cr ! K ^ ■ S £ ft.2 a *- 2 578 INDUSTRIAL STRUCTURE OF NEW ENGLAND OCO© CO i-h ooo moo cjoo ©oo nco -— i o o -*t< o © ccoo ccoo ■hoi'* o © Q0 niom r- «o 3» cn »c "O ai It 3d T pJo'h cicio civoi- cix'-c 2* Q © 'C"ti © f »h tH ti- O •* »0 00 <— i OS ©00 0B Ci 00 (0 i-Tei" oo~co oJoT cct-T ©*co ©" '-c ^58 IS ~ CONSTRUCTION 579 $88 CC CM S3 383 38* £88 ^c co © c! - s 9 ■ : _ — j ri'rc 2 co»o S8§ S8S g§§ |8| g|| £8§ g8§ g§8 g88 i^8S 3S © b» CO FH T 00 ^f — ' © oo 00 © CO <-T CO HN CO O O NOO Oo8 ©88 £?£ CO CM lO CO i-H i-h COt^CN CM »fc ft.2 ^ ill «££ O 03 CD S ft w III CO a.2 S g £ O C3 a c: CD ^ 'oc O C ft"-" ft w «— a> «-« 8 °So c o geg a; ft. Bos S o 3 © C 3J2' ..fchl 580 INDUSTRIAL STRUCTURE OF NEW ENGLAND IS §8S xj g c re OOOO oc S88 h- CO lOO I> (N05 HO HO. <4 .S2?PhS> ..!?fc> ..£h>> U J?K>' ! § I Bl [LDING \N D CONSTRUCTION 58 1 CLASSES OF CONSTRUCTION COMMERCIAL BUILDING New England has shown ;i higher percentage of values in the con gfcruction of commercial buildings during the past few years than was shown either in the division of 21 Northeastern States or in 1) States of the Southeast. A certain amount of this construction has undoubtedly consisted of replacements of lower and smaller build- ings by more modern and more spacious construction in the metro- politan centers of New England. Construction of office buildings and of hotels has been particularly active in Boston, Providence, and several other of the larger cities. Construction of commercial build- ings during the past six years in New England has averaged in the neighborhood of 16 per cent of the total valuation of all building contracts awarded. RESIDENTIAL BUILDING Construction of residences comprised from 45 to 50 per cent of the total New England construction in the past six years. This pro- portion is slightly higher than that for residential construction in the other Northeastern States and exceeds considerably the percent- age in the Southeastern States. Considerable activity shown in building apartment houses in the larger cities has increased the relative importance of this type of construction. Another significant factor is the necessary replacement of poorer and outgrown resi- dences throughout New England. An important element in the cost of residential construction is the necessity for sturdier types of resi- dences in New England to withstand its climatic conditions. This is true particularly in comparison with the Southeastern States. Construction of a New England residence may require from 30 to 40 per cent more lumber and other materials than are needed in Florida and Georgia. INDUSTRIAL BUILDING New England shows a smaller percentage of building contracts awarded for industrial structures than the other States of the North- east or of the Southeast. This fact may be explained by the maturity of New England's industrial development. Its building program for mills and factories was completed earlier, and present facilities are generally still adequate. PUBLIC WORKS AND PUBLIC UTILITIES There has been a decidedly smaller percentage of public construc- tion in recent years in New England than in the other geographical groups of States. Because of the more fully developed nature of most New England communities, the construction of streets, side- walks, electric systems, power plants, sewer systems, and other pub- lic utilities was for the most part completed many years ago. De- velopments along these lines took place sooner and more gradually than in the newer portions of the country ; hence present activity in these public improvements is not particularly marked. On the 61232°— 30 38 582 INDUSTRIAL STRUCTURE OF NKW ENGLAND other hand the rapid growth of communities in other States, par- ticularly in the Southeast, has made necessary considerable construc- tion of these utilities in the newer sections. OTHER TYPES OF CONSTRUCTION In New England the construction of educational buildings shows a slightly higher percentage of total valuation than in the other States of the Northeast or in the Southeast. This type of construc- tion in New England was especially important in 1924 and 1925. Heavy building programs in the larger educational institutions, par- ticularly at Harvard and at Yale University, had an important influ- ence in the total for this class. Considerable activity in the con- struction of public-school buildings was also reported in Massa- chusetts. Hospitals and other public institutions represent a small percent- age of the total construction. Contracts awarded in different New England cities were in practically the same proportion to the total as in the other States with which comparisons are made. Construction of religious and memorial buildings shows practi- cally the same degree of activity as in the other sections. In social and recreational buildings the proportion in New England was slightly less, although it showed some increase in 1925 and 1926. CHANGES IN COST OF CONSTRUCTION Indexes of prices of building material and of construction costs during the years previously considered do not indicate any consid- erable degree of change. So many offsetting factors are present in these costs that reduction of the figures to a common price or valua- tion basis seems hardly warranted. The general extent of changes in cost of materials and construction may be observed from the following table, which gives index numbers recorded from 5 different groups, covering the years from 1920 through 1928. Building Material Prices and Construction Costs [Index numbers: Year 1913—100, except "factory building costs," 1914=100] Year Wholesale building material prices Construc- tion costs Factory building costs Frame house ma- terials (re- tail prices) Brick house, ma- terials (re- tail prices) Monthly a\ erage: 1920 264 1 65 169 190 17f, 175 173 163 251 202 I7. r , 211 215 207 208 206 207 1921 179, 170 202 198 1% L97 193 191 1922 182 206 201 196 id:. 187 178 180 L923 209 1924 203 1925 197 1926 195 1927 1SS 1928 183 ' oolesale building material prices. Department of Labor; construction costs— material and labor, Engineering News-Record; factory building costs, A>berthaw Co.; frame-house, materials and brick- material f retail prices, Department of Commerce. BUIIaDING AND CONSTRUCTION 583 HIGHWAY AND STREET CONSTRUCTION Highway and street construction is of interest both to the local residents within New England and to the increasing number of visi- tors who motor over its roads each season. The decline in horse- drawn traffic since the advent of the automobile and the tremendous growth of motor traffic in all sections of the country make the condi- tion of the highways a matter of very broad general interest. The individual States of New England have done a great deal to provide the best possible highways for the service of their own com- munities as well as to make the scenic and recreational attractions of the region conveniently accessible to visitors from outside their boundaries. Through the system of Federal and State aid, the main arteries of traffic have been developed and kept in first-class condi- tion. This involves the annual outlay of many millions of dollars. Contracts aAvarded on the State highway systems and on rural high- ways under local government control are estimated to amount an- nually to some $25,000,000. HIGHWAYS MILEAGE OF VARIOUS TYPES The general type of highways constructed in New England shows. as a whole, some marked variations from that in other sent ions of the country. These variations arise partly from the type of materials available, p'artly from considerations of construction costs and traf- fic requirements, and partly as the result of differing policies of the various State highway departments. Some of these special circum- stances grow out of the fact that New England has had a longer period of development than other sections of the country. Other conditions are matters of public policy, and still others spring from the high density of population and the attendant dense traffic in this region. The highway systems of the United States belong to two distinct classes. The first of these includes the mileage in the State highway systems which is under the administrative control of the State high- way departments. The second class includes highways under the control of local authorities such as towns, tow T nships, and counties. Highways under State control in New T England comprise a larger proportion of the total than in many other parts of the country. The mileage in its State highway systems in 1924 was approximately 14 per cent of the total mileage of all highways in the region as a whole. This high percentage reflects the organized public interest of the region in the maintenance and construction of its facilities for highway transportation. The following table shows the extent of the State highway mileage in New England and also that in the rest of the United States, to- gether with the mileage of different types of surface in the indi- vidual States. At the end of 1927 the State highway systems of New England comprised 12,747 miles. 584 INDUSTRIAL STRUCTURE OF NEW ENGLAND Mileage and Types op Roads in New Engjland State Highway Systems vi End of 11)27 1 State Grand total mileage Unim- proved Total surfaced Sand- clay top soil Gravel, chert, etc. Water- bound macadam, treated and non- treated Maine _ ___ 1,788 2,310 4,226 1,590 867 1,966 293 239 982 25 388 115 1,495 2,071 3,245 1,565 479 1,851 4 1,171 1,699 2,033 111 23 363 g New Hampshire 117 Vermont _ ... 1,000 49 Massachusetts ,. ___ _ __ . 285 Rhode Island 118 Connecticut _ 765 Total 12, 747 293, 353 280, 606 2,042 116, 786 114, 744 10, 706 176, 566 165, 860 1,004 12, 581 11, 577 5,400 86, 095 80, 695 1,342 United States ... _____ _ 17, 752 16, 410 Outside of New England. __ _. __ 1 As reported by U. S. Bureau of Public Roads. .Mileage and Types of Roads in New England State Highway Systems at End of 1927 * State Bituminous macadam Sheet as- phalt Bituminous concrete Portland- cement concrete Brick and block Maine . __ 224 159 63 711 134 243 88 24 * 100 242 76 331 New Hampshire. _ . 71 Vermont Massachusetts . _ . 214 120 148 3 Rhode Island _ 8 Connecticut 2 Total 1, 534 13, 496 11, 962 8 1,332 1,324 553 5,066 4,513 861 36, 915 36, 054 5 United States _ _ 3,330 Outside of New England 3,325 1 As reported by U. S. Bureau of Public Roads. The improved condition of the State highways of New England is indicated from the fact that approximately 80 per cent of the total mileage included in the State highway systems has been sur- faced. The proportion for the United States outside New England is only 52.5 per cent. In the three northern States of this region the percentage is somewhat lower than the New England average. In these northern States the general policy has been to surface the highways as extensively as possible with gravel and water-bound macadam, rather than the more expensive types of surfacing. These lower types are being replaced by the higher grades of surfacing as rapidly as the traffic and industrial development warrant the larger outlays. Within the last few years the emphasis has been increasingly upon the more durable types of concrete and other high-grade const met ion. EXPBNDITUBE FOB M AINTENANCB AND) FOR NEW CONSTRUCTION Construction of State highways in Now England began when other- States were doing very little in this direction. The types of highways constructed at that time were naturally those which had proved moM successful. Many of the New England highways BUILDING ami CONSTRUCTION 585 were built before the developmen< of the types which are now used widely for construction. Policies of State highway depart- ments in the selection of materials and types are now influenced considerably by this earlier construction. New England has reached the point where maintenance of exist- ing highways absorbs the greater share of the total outlay, and new construction has become of less and less importance. According to statistics compiled by the Bureau of Public Roads, the New England States in 1924 spent only 52 per cent of their highway fund- on new construction, in comparison with 64 per cent for the United States outside New England. New England spent 36.4 per cent of its total disbursements on maintenance of highways, while the rest of the United States spent 16 per cent for this purpose. In road building, as in other phases of construction. New England is divided into two rather distinct sections — the first including the rural northern States of Maine, New Hampshire, and Vermont, and the second embracing the more industrial southern region in Massachusetts, Rhode Island, and Connecticut. Variations bet ween these two sections in population, industrial development, and traffic density have had a distinct influence upon the character and extent of highway construction. In the three northern States, 56.5 per cent of the total high- way funds was spent in 1924 for new T construction; and in the three southern States new construction absorbed only 49.3 per cent. Thus, the proportional outlay for new construction was considerably higher in northern than in southern New England. Outlays for maintenance of existing highways, on the other hand, were consid- erably less in the northern, amounting to 31.3 per cent, than in the southern States, where they comprised 38.8 per cent. Detailed figures for each State are shown in the following table. Disbursement of State Highway Expenditures in the New England States as Compared with the Rest of the United States in 1927 State Total dis- bursements of State High- way Depart- ment Amount spent in con- structing • roads and bridges Per cent of total Amount spent for maintenance on roads and bridges Per cent of total Maine $3, 864, 263 3, 564, 979 4, 080, 316 18, 379, 612 4, 242, 096 12, 783, 981 $5, 134, 208 1, 410, 409 2, 421, 285 10, 803, 947 1, 362, 705 7, 885, 544 17.7 46. 1 32.3 15.0 44.0 33.9 $1, 569, 850 1,645,113 1, 319, 148 2, 753, 600 1, 868, 262 4, 335, 820 57. 9 New Hampshire 39.6 Vermont Massachusetts.. _ 59.3 58.8 Rhode Island 32. 1 Connecticut .. 61.7 Total 51, 915, 247 699, 875, 182 647, 959, 935 29, 018, 098 400, 038, 378 371, 020, 280 26.0 19.8 19.3 13, 491, 793 138, 783, 358 125, 291, 565 55.9 United States 57.2 United States, outside New England 57.3 KINDS OF MATERIAL AND CONSTRUCTION Construction of highways and streets commonly requires three or more layers of material. At the bottom is the sub-base for the foundation and drainage. On top of this is laid the main or base course, and on top of this is placed the filler or wearing course. In some cases an intermediate course is also used. 586 INDUSTRIAL STRUCTURE OF NEW ENGLAXI) The common classification of streets and highways is according to the type of surface or wearing course. On this basis there are three general groups or classes, designated as the low-type group, the medium-type group, and the high-type group. The low-type group has a surface of sand-clay or of untreated gravel. In this type of construction no separate base or wearing course is constructed. In making an untreated gravel road a layer of gravel is laid directly on the graded roadbed. The medium type of surfacing includes several kinds of macadam, designated as water-bound, surface-treated, and bituminous. The water-bound macadam surface is made by spreading a course of broken stone or stone dust and screenings upon a sub-base, and then watering the course and rolling it until the mud flushes to the sur- face, resulting in a natural cementing process. With the surface- treated macadam a bituminous layer of tar or asphaltic oil is applied, together with sand, to the gravel or water-bound macadam surface. In the construction of bituminous macadam an application of bitumi- nous material is made to a surface course of broken stone in such manner that it penetrates this surface course and binds the material together in a solid mass. The high-type surfacing includes constructions of cement con- crete, of bituminous concrete, and of sheet asphalt pavement, as well as block pavements made of wood, stone, or brick. These types of construction require, in addition to the surface layer, the preparation of a base of concrete or macadam of considerable depth. This calls for substantial quantities of material in the form of crushed stone, gravel, or other inert material sufficient to support the heavy traffic for which this type of construction is designed, in addition to cement or other binding material. The common classifi- cation of streets and highways only from the standpoint of the sur- face layer does not give an adequate conception of all materials that enter into construction. Gravel, — Gravel surfacing in New England at the close of 1925 represented 43.7 per cent of that on all State highways, and com- prised a total of 4,245 miles. This is approximately the same pro- portion as exists in the United States outside New England. There is comparatively little of the lower types of surfacing in southern New England, and a correspondingly greater proportion of the higher types. All but 68 miles of the total gravel surfacing on New England highways were in the three northern States. In Ver- mont 1)5 per cent of the State highways are surfaced with untreated gravel. In Maine 44.7 per cent of the State highway mileage is sur- faced by this method. & ur face-treated macadam or (/ravel. — Surface-treated macadam and gravel make up nearly one-third of the total State highway mileage in New England.' This exceeds considerably the propor- tion in other sections, which amounts to only 9.5 per cent in the States outside New England. The percentage of bituminous mac- adam in the New England States also exceeds that, for the country outside. The mileage of untreated water-hound macadam in the New England States is comparatively small. Bitv/minous concrete. — Bituminous-concrete surface forms a larger portion of the State highway mileage in New England than in ; 'i\'<; \\D OONSTRIK I 587 the mileage outside. In Rhode [sland this type of Burface repre sents ;>;> per cent of the State highway mileage, and in Massa chusetts L2.6 per cent. . Oemmt concrete.— In cement concrete construction New England is considerably Lower than the country as a whole. This i n tnbuted to the fact that (his type of construction is a comparatively recent development. Much of the highway construction in southern .New England had been completed before the general adoption of cement-concrete construction by State highway officials. The use of this type had no particular significance in highway construction until about 1913. Nearly four times as many square yards of cement highway were laid in 1919 as in L91 1. The early adoption of bit.i mmous surfacing m New England has favored continuation of this type. In recent years, however, the amount of cement-concrete con- struction has greatly increased. Brick. — Use of brick surfacing in State highway construction is practically negligible in New England. This maybe explained by the high cost of this type, and by the lack of production of paving brick in New England States. ANALYSTS OF MILEAGE Analysis of the mileage of different types of highways existing the individual States of New England is presented in the follow- in ing table. Country and Rural, Roads in New England States by Types op Construction at End of 1925 Maine New Hamp- shire Ver- mont Massa- chu- setts Rhode Island Connec- ticut Total, Eng- land Total rural roads not in State system: Miles__ Rural roads surfaced: Miles . 19, 306. 3, 059. 8 15.9 2, 910. 7 95.1 73.7 2.4 47.9 11,721.0 125. 6 1.0 123. 97.6 10, 408. 1, 613. 15.5 1,613.0 100.0 17,541.0 6, 359. 2 36.3 2, 168. 6 34.1 1,606.0 371.2 23. 1 113.0 30.4 11. 171.0 884.fi 7.7 8.4 72,Q56iO 12,413.3 17.2 Per cent of total Character of surface: Gravel, untreated — Miles 6, 936. 7 Per cent of total surfaced Sand-clay — Miles. . 73.7 Per cent of total surfaced . li Surface-treated macadam and gravel — Miles 2, 785. 7 43.8 141.1 2.2 922.2 14.5 275.1 4.3 48.6 .7 17.2 .2 .7 121.0 32.6 48.2 L3.0 75.5 20. 3 .5 564.3 .5 135. 4 100.8 19.7 3, 518.fi 28. 3 Per cent of total surfaced 1.5 9.9 .3 11.7 .4 2.5 Water-bound macadam and untreated- Miles . _______ 334. 6 Per cent of total surfaced 2.7 Bituminous macadam by penetration — Miles__ _ 2.6 2.4 1,112.8 Per cent of total surfaced _ 9.0 Bituminous concrete — Miles _ 297. S Per cent of total surfaced '_'. 1 Portland-cement concrete — Miles 1.8 3.0 51. fl 105. 3 Per cent of total surfaced .8 Block pavements — Miles .1 3.0 .9 7.0 L.9 4.0 20.3 Per cent of total surfaced .2 Sheet asphalt — Miles 1.5 13.2 .1 588 INDUSTBIAL STRUCTURE OF NEW ENGLAND SEASONALITY OF HIGHWAY CONSTRUCTION Considerable seasonal variation naturally exists in the construc- tion of highways in New England. Projects can seldom be started before April 15, and in most cases they have to be completed by the 1st of November. The individual States prescribe various regula- tions on this point. The State Highway Department of Massa- chusetts, for example, requires that no concrete for State highway construction shall be mixed or placed when the temperature is be- low 7 35° F. Special provisions are made also for the protection of newly laid concrete in cold weather. In the southern New England States construction usually begins about 15 days earlier and closes 15 days later than in the northern States. Contracts for building State highways are awarded mainly during the spring and early summer. On short stretches of highways contracts are awarded throughout the entire season. In Rhode Island the State highway department lets contracts at several times during the year. Contracts that are awarded in the early spring are usually completed in the same year, while those awarded late in the season are completed in the following year. RURAL HIGHWAYS All New England highways not included in the State systems are designated as rural highways. These are under the control of local rather than State governments and, on account of the great number of contracts let by local communities, it is difficult to obtain correct figures of construction. A greater percentage of local high- ways is surfaced in New England than in the other States, and most of the surfacing is of a higher type. New England shows approxi- mately the same percentage of untreated local gravel roads as the rest of the country. Of local macadam roads having surface treat- ment, however, New England has a considerably higher percentage. There is also a considerably greater use of bituminous macadam. This naturally increases the market for tar, asphaltic oil, and pat- ented types of surfacing materials. MARKET FOR ROAD-BUILDING MATERIALS The demand for paving asphalt and road oil is supplied almost entirely from oil refineries in the New T England States. Relatively small receipts from Baltimore are reported by the trade. The cen- ters of production of asphalt and road oil in New England are Fall River and Everett, Mass., and Providence, R. I. Practically all the paving asphalt is refined from imported Mexican petroleum. For sand, gravel, and stone the New England market is well supplied by local production. STREET CONSTRUCTION 1 1 j order to determine the kinds of paving materials required by New England cities a questionnaire was sent to the street depart- ments oi 20 of the largest New Emgland cities, calling Tor a state- men! regarding the total yardage of streets in these cities and a clas- sification of different types of paving on January I, \^27. Tabulation of replies received from L6 of these cities shows the relative importance of different types of street paving which are believed to be fairly representative of New England cities. BUILDING AND CONSTRUCTION 5gQ Types of Paving i\ k; Nkw Engi wn Cities \s 01 Jam un L L927 State and city Asphaltio Cement concrete ( tranite blo< k Wood block 79, 956 17.070 72, 559 10,306 3, 583 25,000 1,212 M MM. Haimor Sq. yds. Sq. >/