3 9999 06317 b^** '

NATIONAL RECOVERY ADMINISTRATION DIVISION OF REVIEW

EVIDENCE STUDY NO. 38

OF

THE STRUCTUAL CLAY PRODUCTS INDUSTRY

Prepared by STERLING R. MARCH

September, 1935

PRELIMINARY DRAFT (NOT FOR RELEASE: FOR USE IN DIVISION ONLY)

3 9999 06317 t)D^

NATIONAL RECOVERY ADMINISTRATION

— — rtrrt 8 lyjtj

DIVISION OF REVIEW

EVIDENCE STUDY NO. 38

OF

THE STRUCTUAL CLAY PRODUCTS INDUSTRY

Prepared by

STERLING R. MARCH

September, 1935

PRELIMINARY DRAFT (NOT FOR RELEASE: FOR USE IN DIVISION ONLY)

I

i

THE SVIDEiyC:^, STUDY S311IES

The EYIDSrCE S'TUDIES vere oririnall:.'- plrAnned as a raecns of gathering evidence bearinj: upon verious loijal issi^es -.'liich arose ■under the National Industrial Secover:,- Act.

These studies have value ajaite aside fron the iise for vrhich the:"- were originally intended, Accordingl;-, they are :iOn nade available for confidential use trithin the Division of Hevieu, and for inclusion in Code Histories,

The fxill list of the Evidence St~adies is as iollov;s:

1, Autono 13110 Man-'ofactui'lng

2, Soot and Shoe

3, Bottled Soft Drinlt

4, Builders' Supplies

5, Chenical Ilfg,

6, Cigar Llf;;:. Industry

7, Construction Industr;'-

8, : Cotton Garment

9, Dress I,Ifg,

10, Electrical Contracting

11, Electrical Mfg. Industry

12, Fabricated Lletal Products 15. Fishery Industr}"-

14. F'jrniture Mfg,

15. General Contractors

16. Graphic Arts

17. Gray Iron Foundr^'- IS, Hosiery

19. Infants' and Children's Uear

20. Iron and Steel Industry'-

21. Leather

22. L-anber and Ti:nber Products Ind\\stry

23. l.Iason Contractors

24. Lien's Clothing Industry

25. notion Picture

26. Motor Bus Mfg. Industry

27. iTeedlework Industry?- of P-aerto Pdco

23. Ps,inting said Paperhanging

29. Photo Engraving Industrjr

30. Plumbing Contracting

31. Iletail Food

32. Retail Lumber

33. Iletail Solid ]?ael

34. Retail Trade

35. Rubber Mfg,

36. Rubber Tire Mfg,

37. Sill: Textile

33. Strtictiu-al Clay Products

39, Throning

40, Truching

41, TJaste Materials

42, Ylholesale Food

43, T/holesale Fresh Fruit & Vegetable 4-1. Wool Textile Industry

In addition to the studies brought to co;T:pletlon, certain naterials have "been assembled for other industries. These MATERIALS are included in the series and are also nade available for confidential use -Tithin the Division of Revievr ajid for inclusion in Code KistorieE, as follows:

45, Autonotive Parts & Equipnert

46, Baiting Industr;-

47, Ccjoning Industrrr

48, Coat and Suit

49, Household Goods C: Storage etc.

50, Motor Vehicle Retailing Trade

51, Retail Tire end Battery Trade

52 , Sliip bui 1 ding

53, TiTnolesaling or Distributing Trade

ij. C, iARs-^eiLxj DIRECTOR, DIVISIOM OF REVIEW

\

CONTENTS

Page

Forei;7ord , 1

CHAPTER I - KATUEE OP T'lE INDUSTRY 2

Definition of the Ind"ustry 2

N"umber of Establishments 2

Niomber of I.Ierabers of the Industry. ........ 3

Number of Estr.blishnents by States 3

Capital Investment and Productive Capacity .... 6

Value and Volume of Production 7

Failures 7

Continuity of Production 8

Competing Products 9

CHAPTER II - LABOR STATISTICS 10

Employment and Payrolls 10

Seasonal Variation 13

Trend of Average Weekly Wages 14

Percentage Ihich Cost of Labor

is of Value of Product.. 15

CHAPTER III - ILATERIALS: RAW AND SEMI-PROCESSED 16

Principal Materials Used in the Industry 16

Cost of Materials, Fuel, and Purchased

Electric Energy 16

Equipment 17

CHAPTER IV - PRODUCTION AlE) DISTRIBUTION 18

Value and Volume of products by States 18

Interstate Movement of Goods. . . 21

Type of Distributive Outlet 24

Volume of Imports and Erqjorts. 25

Shifts of Centers of Production 25

CHAPTER V - TRADE PPA.CTICES 26

Unfair Trade Practices Prior to the Code 26

Unfair Trade Practices Under the Code 27

CHAPTER VI - TIIE INDUSTRY - GENERAL INTOEIAATION 28

Operations of the Industry 28

Trade Associo.tions 28

Organization of Labor 28

Present Financial Condition of the Industry. ... 29

Effect of the Code 29

Trade Marks 29

Imports 31

Exnerts 31

8592

-1-

TABLES

Pa-gje

TABLE I -

TABLE II -

TABLE III -

TABLE IV -

TABLE V -

TABLE VI -

TABLE VII ~

TABLE VIII -

TABLE IX -

TABLE X - Err:

TABLE XI -

Kumber of Estatlislinents iDy

Major produ.cts 2

Numter of EstatlisliEients Producing

Comraon Brick by Principal States. . Cj-4

Immber of Establishments Producing

Face Brick by Principal States 4-5

Humber of Establishments producing

Vitrified Paving Brick by

Principal States 5-6

Niimber of Establishments producing Hollow

Building Tile by principal States 6

Total Value and Volnine of Prodaction in

the Industry as Defined by the Code by

Kind of Product 7

Kuraber of Plants and Value of Product

for Establislinents in the Four Main

Divisions of the Indu.stry, Classified

by Days Operated, 1953 8

Average l>TaHber of Employees and Total

Annual Payrolls In the Pour Main

Divisions of the Industry 10

Employment, Payrolls, and Average

Weekly Wages in Establishments Whose

Major product was Common Brick, by

Principal Producing States, 1933 11

Imployment, Payrolls and Average Weekly Wages in Establishments Whose Major Product was Face Brick, by Principal States, 1933 12

Employment, Payrolls, and Average

Weekly Wages in Establishments Whose

Major Product was Paving Brick by

Principal producing States, 1933 12

8592

-11-

TABLES (Cont'd)

Page

TABLE XII - Eraxilojinent, Peyrolls, and Average

Weekly ITage in Establisuinents Whose

Major Prodtict was Hollow Building lile,

"by Principal Producing States, IQ^CS 13

TABLE XIII - Seasonality of Employment in the Four

Main Divisions of the Industry 1333 14

TABLE XIV - Average '.Teekly Earnings in the Foiir

Main I^ivisions of the Industry 15

TABLE XV - Relation of Total Labor and Total Materials Cost to Total Val\ie of Product in the Four l.Iain Divisions of the Industry 16

TABLE XVI - Cost of Materials, Fuel, and Purchased Electric Energjr, by Main Divisions of the Industry 1929 and 1933 17

TABLE XVII - Volume and Value of Common Brick Produced

in Principal States 18

TABLE X\^III - Volume and Value of Paving Brick

Produced in Principal States 19

TABLE XIX - Volume and Value of Hollow Tile

Produced in principal States 20

TABLE XXI - Volume and Value of Face Brick

Produced in Principal States 21

TABLE XXI - ComiDarison of Production and Consumption

of Brick, by States, 1929 23-24

TABLE IQCEI - Comparison of Estimated Total A^alue of

Construction and Total Value of Structural

Clay Products Consumotion (index, i926-lC0' ) , . , . 29

TABLE XXIII - Factory Em.plo3?nent , Payrolls, Hours,

and Wages 1933-1935 30

oOo

8592 -iii-

ST3UCTIHAL CLAY PRODUCTS liDUSTlIY

Ppr error d

The Structural Clay Products Incaistr--, as defined "by the Code, consists largely of tlie four "branches — connon "bricl-, fr.ce "brick, pavin;-^ "brici-.ii r.nd struct-t-UT-l cla.;- tile. In c'-o.dition, the Coi'e covers vitrified "brick for -our- noses other thcin -^avin-;, glazjd end enameled "brie':, hollo'T "byick, rv.C clay or shale .;:ranuJ.es. 'These products represent only a STnrll -oortion of the total product of the In6.ustr--, however, ?.no are lerrcely -oroduced in -olant-; of the four r.iain Industr;-- branches. Since riany nlonts ;oroduce more than ono "i^rodiict. an effo-"t has "been :nade to avoid du^olication in th? statistics used in this reiDort •

The data included in the follo^'in-:; tahles are derived chiefly from tvo sources, the Census of llanufactures and the Bureau of La'bor Statistics, The Census data used rre, in the main., the totals for the four "branches of the Indxistrv named a"bove as taken from the Census classification, "The Cla;- Prod- ucts Industries," and re;ores9.-_t a covera^-je roughly com-oarohle ■-'ith Code cover- age. Certain data used, ho^7ever — namely, that classified "by major irodxicts — give a coverage somerrhat less inclusive than the Code. The usual limitation of Census of llanufactures data arising from the exclusion of es' a'blislinents nith cor. rcnLrual -Droduction of less than $5,000 does not apply in the case of this Ind.ustry, as these smaller establishments vrere covered hy the Census re~ ports.

Census dx-.ta on total nur.i"ber of estahlislinents in the f orar hra/nch.es of the Industr;-, on num"'oer of employees, on amo-ujit of total -nayrplls, and on vage rates, represent those establishments '.'hose major product '-'as either common brick, paving brick, face brie]-:, or hollor: ""uuilding tiles. State breakdorrns of data along these lines \7ere available onlj^ for 1933, and such of these data as pertain to labor have been used in Chapter II. Similar data are used in Table I uhich shous nuiber of establishments by major -products for the United States, In spite of a certain amount of duolication involved, in order to retain compETability of data for several years, th3 state breakdovms for the number of establishments cover all establishments Tarodticing the s-oecified con:iodity, v.hether as major or minor product. The r)roduction tables — whether givir^g the total for the United States or state breakdonns — re-oort the totcl production of snecified commodities in all establishments.

85-32

-2-

Chapter I

MTIIiE 0? THE IlIDUS^niY

Definition of tne Industry

The StructuTiil Clay Products Industry includes the nanufacturers viho :oro- duce in the United States and sell comnon brick, face "brick (including glazed and enameled "brick), structural clay tile (including; glazed tile), -oaving "brick, and clay or shale granules, ojid any other related groups that, nith the approvp-l of the Administrator, elected to operate under this Code.

The four "branches of the Industry are: comnon hrick, paving "brick, face "brick, and hollon "building tile,

Kum"ber of Esta"blishments

Table I, beloij, gives the number of establislments whose major product is one of the four tynes of product specified just above. Except for 19341/ > figures are not available, without duplication, for the nimber of establish- nents v,'hic"n "oroduce these commodities as minor products .and yet are not in- cluded in one of the above groups. Consequently the totals giv -n in this table are less inclusive than the Code coverage for the Industry.

TA3LE I

a/

Number of Establisiiments by Major Products — '

Product 19r^9 19S3 1934

Total 1159^/ 531 533

Common Brick 735 352 333

Pa,ving Brick 34^/ 25 27

Face Brick 244 96 90

Hollow Building Tile 146 78 83

Source; 1929 data from Census of Manufactures, 1929, "The Clay Products

Industries", Table 6; 1933 and 1934 data from special Census tabula- tion for JxT.R.A. , Research and Planning Division, 1933 and 1934,

aj In addition to the number of establishments nroducing the above com-

modities as major products, there were 366 establishments in 1934 producing tliem as minor products, resulting in a total of 899 for the industry. Similar figures are not available for 1929 or 1933,

b/ Includes vitrified brick used for other purposes than uaving.

The results of a partial study of some 500 companies made 'bj the former Code Authority revealed that about one-half the total number of estnblishraents malve one product, about one-quarter make two products, a little less than one- quarter make three products, and one-fiftieth make foiir products; the remain- ing "olants, for the most part, probably make onlj'' one product, and ver3- few

of them more than two products. ____

Xj See footnote §/ to Table I, 35^2 "

N'um'ber of Heraljers of the Industry

Ho thorough check has ever been made of the nuniter of companies ifho con- trol t\70 or more plants, "but it is jmo-r^n that ten members of the Industry- operate five or more plants each, and the former Code Authority estimated that the number of members in 1.^34 v/as equal to about thirty per cent of the num- ber of plants.

Number of Establishments by States

The total number of establishments, by states, in each of the four branches of the Industry is given in Tables II, III, lA^ and V below. These figiires include all of the e stablisliraents producing any of the commodity or comnodities listed, whereas Table I includes only those establishments for which the product specified is the major product.

In addition to the four products for which da,ta are given in the tables below, the Code covers establisliments producing vitrified brick for purposes other them paving, glazed and enameled brick, hollow brick, and clay or shale granules. Undoubtedly there is considerable duplication between e stablish- ments producing these latter products and the products named in the following- tables. Por this reason the establisliraents producing the above-mentioned itens have not been included in the data pres^^nted in these four tables, but the niinber of such establishments has been indicated in footnotes of the appropriate table except that no data are available on clay or shale granules.

Pennsyl-vania ranlced first in the number of establishments producing common brick and of those producing face brick in each of the years 1929, 193' and 1954. Ohio was the leadin^^ state in the number of establishments produc- ing building tile. As for paving brick, Pennsylvania ranlced first in 192S with 14 establishments, while in 1932 and 1934, Ohio led with 20 and 17 es- tablisliments respectively.

The former Code Authority has estimated that over one-half of the total number of all plants in the United States, for all branches of the Industry, are located in four states; 20,7 per cunt in Ohio; 17.0 per cent in Penns3-1- vania; 10,4 per cent in ITew Jersey, and 6,6 per cent in Illinois.

TABLE II

Number cf Estciblishments Producing Corano-n Brick by Principal States ^

State 1929 1932 1934

693

18

■6

29

19

16

7

9

44

18

22

8592

U. S. Total

1074

(

591

Alabama

33

15

Arkansas

10

5

California

55

37

Colorado

25

22

Connie cticut

20

12

Florida

8

3

Georgia

18

8

Illinois

60

54

Indiana

27

21

Iowa

35

24

(Cont:

inued on

following

page)

_4-

TASLE II (Cont'd)

Kansas 17 15 12

Kentucky 22 12 16

Lov.isiana 17 7 7

Maine 17 10 10

Massachusetts 22 16 13

Michigan 13 11 14

Liimiosota 13 10 11

Mississippi 21 6 6

l.Iisso\iTi 21 15 15

Wetraska 15 4 4

Jlevf Hampshire 9 11 10

New Jersey 23 15 15

Ner; York 50 38 32

North Carolina 53 22 23

Ohio 59 45 40

Oklahoma 17 13 13

Pennsylvania 104 80 74

South Carolina 19 10 10

Tennessee 21 15 21

Texas 37 28 29

Virginia 42 24 27

Washington 19 10 13

West Virginia 14 6 6

Wisconsin 27 19 18

Other States 96 49 66

Sovj-ce; 1929 data from Census of Manufactures, 19^9, "The Clay Products In- dustries," Table 5; 1932 and 1934 data from Cen3^lG reoorts on The Clay Products Industries, 1932, and 1934, Table 3.

a/ It should be noted that the Code also covers the production of hollow brick for -^hich no separate table is presented. Since it and comraon brick are often produced in the sane plants, establishments listed as producing hollorr brick have not been included in this table, in order to avoid dui^licction. Such plants totaled 41 in 1939, 28 in 1932, 37 in 1933, and 35 in 1934.

TABLE III

ITuTiiber of Zstablishiaents Producinr^ Pace Brick by Principal States ^/

State 1929 1932 1934

U. 3. Total 457 375 34-8

Alabama 13 6 8

Arkansas 7 5 6

California :.7 13 17

Colorado I'-i 11 12

Georgia 7 6 4

Illinois 27 26 21

8592 (Continued on follo-.7ing page)

TABLE III (Cont'd)

Indiana 22 18 14

lOT-a 21 19 18

Kansas 14 11 13

Kentucky 6 4 6

Michigan 3 3 3

Minnesota 3 2 2

MiJ'Sissipiii 9 5 3

Misiso-uri 12 12 9

North Cai'olina 9 6 4

Ohio 50 45 42

Oklahoma 16 13 12

Pennsylvania 84 72 59

Soii.th Carolina 4 5 2

Tennessee lO" 8 11

Texas 17 16 14

Virginia 10 12 10

Washington 9 9 9

West Virginia 10 7 6

Wisconsin 7 5 3

Other States 57 36 40

Source: 19r:9 data from Census of Manufactiores, 1929, "The Clay Products In- dustries," Tahle 5; 1932 a:id 1S34 data fron Census reports on The Clay Products Industries, 1932, and 1934, Tahle 3.

a/ It should be noted that the Code also covers the production of en- a;j<^.led hrick for \7hich no separate tahle is presented. Since it and face hrick are often produced in the sane plants, establish- ments listed as rjroducing enameled brick have not been included in this table, in order to avoid duplication. Such plants totaled 7 in 1929, 9 in 1932, 13 in 1933, and 10 in 1934.

TABLE IV

Nurriber of Establishments Producing Vitrified Paving Brick by Principal

State sa/

State 1929 1952 1934

U. S. Total 77 75 72

Ohio 13 20 17

Pennsylvania 14 9 10

Illinois 8 11 9

Indiana 5 2 6

l0T7a 3 4 3

Kansas 3 ' 7 7

Texas 2 3 2

IJew York 2 11

Other States 22 18 17

8592 (Continued on following page)

-6-

TA3LE IV (Cont'd)

SotLTce: 19J?9 data from Census of Manufactures, 1939 , "The Clay Products In- dustries," Table 5; 1952 and lyol data, fi-om Census reports on The Clay Products Industries, 1933, and 1954, Table 3.

a/ It shovad be noted that the Code also covers the production of

vitrified paving brick for other purposes, for ivhich no separate table is presented. Since it and vitrified pavin^''' brick are often produced in the same plants, establishments listed as producing vitrified TDaving brick for other pumoses have not been included in this table in order to avoid duplication. Such plants totaled 41 in 1929, 34 in 1932, 39 in 1933, and 54 in 1934.

TABLE V

Kuraber of Sstablislinents Producing Hollow Buildin-^ Tile by Principal States^:/

State 1929 1932 1954

U. S. Total 419 347 327

California 21 17 18

Colorado 8 10 10

Georgia 6 4 4

Illinois 32 37 27

Indiana 25 19 19

lora- 36 28 27

Kansas 16 14 15

Kentucky 7 5 7

Missouri 13 10 10

Ne'.7 Jersey 14 12 8

l\Tev/ York 5 4 4

Ohio 63 53 47

Pennsvlvania. 31 31 22

Texas 14 14 14

Tfeshington 13 11 7

Other States 115 78 88

Source: 1939 data from Census of Manufactures, 1939, "The Clay Products In- dustries," Ipble 5; 1932 and 1934 data from Census reiDorts on The Clay Produces Industries, 1932, and 1954, Table 3.

a/ To give Code coverage, only two of the three groups included in this category by the Csnsus have been used. These are (l) partition, load- bearing, furring, and book tile, and (2) floor-arch, silo, cXid corn-crib tile, radial chhanej blocks, and fire riroofing tile. The third group, conduit tile, was not incluaed xmder the Code.

Ca'nital inveLtnent and Productive capacity

The capital invested in tne Structural Clay Products Industry, according to a study nede some years ago by the Brick and Clay Hecord (the leadin.^,' trade journal in the Industry), was $275,000,000. Many hiondreds of plants liave failed and in many cases the same plc.nt has been involved in rey^eated 8592

-7-

failiires — nev/ capital having been invested in the business v/ith each re- financing. Ko marked change in capacity has occurred since the above estimate was made. The former Code Authority estimated the productive capacity of the Industrjr at 45,000,000 tons annually. The invested capital vrould therefore have been about $6,00 per ton, on a yearly average basis. The basis upon which the capital investment was calcvilated is not kno\7n.

Va].ue and Volvune of Production

The total value of products and voluiae of production for the Industry are given in Table VI, below, for the yecrs 1929, 19ol, 1933 and 1934. This table shows a tremendous decline in volume and value from 1929 through 1933, i-'ith a sm3.ll increase in both voliime and value in 1934, as compared '-'ith 1933. These figures are taken from the Census of Manufactures of the Department of Com- merce— the volume of production is actaal production and the value is selling value ,

Failures

Dun and Bradstreet reijort t-,;o failures for 1934 in the Structural Clay Products Industry. i/ Data for other years are not available.

TASLI YI

Total Value and Volume of Production in the Industry as Defined by the CoO.e by Kind of Product

Kind of Product

Total

Volume of Pi'oduction (in millions )§:/

1929 1931 1933

1934

Value of Production (in thousands)

1929

1931

1933

1934

$125,934 $49,275 $16,794 $22,598

Common Brick Vitrified Brick For Paving Por Other Purposes b/ Face Brick Enajneled Brick Hollow Brick Ho Hot/ Building Tile (e:.:cluding conduit tile)

5,505 2,315 1,020 1,099 274 179 54 100

58,733 21,652 5,971 3,845

8,816 11,419

1,106 2,232

118 202

3 ,807 4 , 749

172 163

80 85

,669a/ 1,806a/ 596a/ 672a/ 21.973 9,543 2,695 3,748

93

29

9

14

1,533

422

2,139

903

270

305

36,120

13 , 271

17

9

4

4

1,259

484

26

6

4

6

345

58

Source: 1929 data from Co-isa-; of LianuFactures, 1929, "The Clay Products In- dustries;" the remaining data from Census reports on The Clay Product Industries. 1931, 1933, and 1934.

a/ Hollow buildin- tile is expressed in thousands of tons.

b/ Vitrified brick for pumoses other than paving was not specifically

mentioned in the Code definition but since it is produced in the same establishments thp.t "iroduce paving brick it wo.s considered as ujider the Cede in th^' administration thereof.

1/ Current Anal-sis of Insolvenc?/ Trends (February 28, 1935), 3592

-8-

Continuity of Production

This Industry has not operated continuously in recent years hecause its voliime is dependent upon activity in the Constru.ction Industry. Table VII, "below, gives a picture of operating activity in the Industry from which to judge the continuity of employnent aiid production throughout the year 1933, The table emphasizes the fact that in tliis year the vast majority of the plants worked fewer than 200 days per year, and that more than 80 per cent of the total production came from such plants.

TABLE VII

iJumber of Plants and Value of product for Establishments in the Eour Main Di visions of the Industry, Classified by Days Operated,

1933 a/'

Number of Days of Operation

Number of Establishments

Value of Product (0001 s)

Per Cent of Total Value

212

55 15 40

157

Less than 100 days

Total 322

Comn;on brick Face brick Paving brick Hollow building tile

100 to 199 days

Total

Com;non brick 86

Face brick 31

Paving brick 9

Hollow building tile 31

200 to 299 days

Total 56

Common brick Face brick Paving brick Hollow building tile

300 or more days Total

Common brick 9

Face brick 1

Paving brick 0

Hollow buildinte tile 0

Not reported

Total 6_

Common brick 3

Face brick 2

Paving brick 1

Hollow building tile 0

22 7

0 7

10

$6.701

4,003

1,254

689

755

6,571

2,890

1,561

553

1,467

2,246

1,103

663

0

480

635

635

0 C

181

72

109

c/

0

41.0 46.0 35.0 51.3 27.9

40.2

33.2 43,5

48.7

13.8

12.7

18.5

0

17.8

3.9

7.3

-■0

0

1.1

0.8 3.0

c/

■0

(Continued on the following page)

8592

-9-

TABLE VII (Cont'd)

Source: Special Census report to NRA, Research and Planning Division, 1933,

a/ Data are for estatlishments vv'hich produce the commodities

listed as major products.

"bj Included with "Hot reported."

c/ Included with "Less than 100 days."

Competing products

All of the products of the Industry are used in the Construction Industry, Competing products are:

Concrete blocl: and other concrete products

Cinder concrete "block toid cinder "brick

Plain and reinforced concrete

Terra cotta

Artificial stone

Cut "building stone

Cement

LUiU'ber

Asphalt

Stone oaving "block

8592

-10-

Chaptor II LABOR STATISTICS

Emplo^'jent rad pn.yrolls

Table VIII, below, gives the averat'^e nioiiitei- of employees and total amoxuit of payrolls for escablishnents who'^-.e major product was either comnon 'bricl:, face brick, paving brick, or hollo\7 tile, Betvjeen 1929 and 1933 the ntiriber of employees declined 77 per cent mid the amount of total annu^^Z pajQ'olls declined almost 90 per cent. Tables IX, X, XI, and JCEI, beloTT, shoT.' the average number of employees, total anmial payrolls, and average weekly wages by states for 193^ for each of the four main branches of the Industry.

TABLE VIII

Average Number of Employees and Total Annual Payrolls In the Four iJain Divisions of the Industry a/

1929

1931

1933

NuTjber of employees 46,179

Total aiinual payroll 51,499 (in thousands)

25,298 21,372

10,620 5,598

Source: 1929 data from Census of ].Iaim.f actures, 1929, "The Clay Products Industries;" 1951 data from Census report on Tlie Clay Products Industries, 1951; 1953 data from special Census tabulation for llPA, Research and Plamaing Division, 1933.

a/ Data are for those establishments producing as major products either comm.on brick, face brick, vitrified brick for paving purposes, and holloi.7 building tile.

8592

-11-

TASLE IX

Emplo^raent, Payrolls, and Averace TJeekly 'Tages in Establishments whose Major Product was Connon Brick, "by Principr.l Producing States, 1933.

State

Employees a/ Pa'""olls t/ (in tiiousands)

Average 'Jeekly c/ TTage

U. S. Total

Alabana

Arkansas

California

Colorado

Connecticut

Florida

Georgia

Illinois

Indiana

loua

Kansas

Kentucky

Louisiana

Llaine

Iiaryla;.id

Llassackusetts

Uichigan

Minnesota

ilississippi

Ilissouri

ITehraska

ITeTT Haup shire

lTev7 Jersejr

lieu York

llorth Carolina

Ohio

Oklahoma.

Peniis,3"lvania

South Carolina

Tennessee

Texa.s

Virginia

Washington

Uest Virginia

Wisconsin

Other States

5,963

220 62

244- 44

173 65

411

192 70 39

74

33

192

106

33

42

152

71

30

55

427

470

394

163

56

547

212

267

130

504

25

38

55

141

$2,951

69

19

144

30

101

13

119

153

37

21

12

62

21

24

103

76

17

23

49

48

17

40

209

306

129

102

29

332

55

119

50

246

18

20

32

101

$9.52

6.04

5.88

11.35

13.12

11.23

5.33

5.58

15.33

10.17

10.35

7.2.

6.4u

5.46

13.93

10.31

13.79

9.90

10.54

6.19

13.00

10.90

13.93

9.40

12.52

6.29

12.04

9.96

11.67

4.98

8.58

7.40

9.33

13.85

10.12

9.46

13.77

csource: a/

y

cj 3592

Bureau of Census Division, 1933.

SiDCcial Seport to UHA, Research and Planning

Data cover 332 estahlisiinents.

Employees inclrde all ua.ge earners. Wages include wages paid to wage earners listed. Computed "by IIRA, Research and Planning Division - average week- ly payroll divided "by nuraher of employees.

-IC-

TA5LE X

Employment, Payrolls end. A'rorp.Te Weekly ""ages in Establishments

■whose Major pro"uCt '.vae luce Brick,

■by Principal Stc.tc;^, 1933.

State

Employees a/

Payrolls h/ (lu tliousands)

Average T.'eolcly cj TTage

U. S. Total

2,242

Alabama, Arkansas

Colorado aiid Texas

234

Indiajia and Illinois

262

loua, Kansas, Llichigan

Liinnesota, Missouri,

Soutii Dakota, and

Uisconsin

199

IToTT Jersey, ilaryland

Elaode Island, and

iTeT7 York

162

Ohio

481

Pennsylvania

623

ICentucliy, Tennessee,

Virginia, and West

Virginia

182

$1,290

97 142

Other States

99

140

129 255 337

73

64

$11,06

7.98 10.42

13.54

15,31

10.19 11.94

8.04 1.17

Source: Bureau of Census, Special Report to NEii, Research and Planning Division, 1933. Data cover 96 estahlishments,

a/ .Employees include all wage earners, h/ Wages include tvages paid to wage earners listed, cJ Computed by I7RA, Research and Planning Division, - Average

weekly payroll divided "by n-Jinber of employees.

TABLE XI Emplo3'ment, Payrolls, and Average Weelcly Wages in Sstahlishments uhose Llajor Product vias Pr.ving Brick "by Principal producing States, 1933.

State Employees a/ payrolls b/ Average Weekly cJ

(in thousands) Wage

U. S. Total 790 Illinois, Indiana, lovra

aiid Kansas IT. Y. Pa. ct W. 7a.. Ohio C-a. Okla. Sc Texas

242 82

322 144

3459

147 46

221 55

$11.42

11,67

10.79

13.19

7.35

Source: a/

£/

3592

Bureau of Census, 3]jecial Report to MRA, Research and Plcjining Division, 1933. Data covers. 25 establishne--its,

Er-iployees include all 'lage ea,rners.

Wages include rrages paid to T/age earners listed.

Corn-out ed "by IIRA, Research ejid Planning Division, - Average

neekly payroll divided by average n-ujnoer of employees.

-IS-

TABLE XII

EnplojTnent, Payrolls, aaid Average Weekly Wage in Establishments Wiiose Major Product was Hollow Building Tile, by Principal Producing States, 1933.

ite

ZEmployees a/

Payrolls b/ (in thoix^iands)

Average Weekly c/ Wage

U. S. Total

1,526

Illinois

71

Indiana

91

loua

214

Ohio

357

Penns:^''lvania

159

Alabama and llorth

Carolina

38

Montana, California,

&

Oregon

53

Maryland & W. Virginia

107

Kansas and Missouri

53

llinnesota, ITebraska

&

ilorth Dalcota

55

lew York and Kew Jersey

140

Hew Ilexico and Coloi

■ado

50

Arkansas, Louisiana,

Okla. & Texas

217

$883

15

$10.50

42

11.38

72

15.21

129

11,60

173

9.33

82

9.92

8,10

52

15.87

52

11,13

25

9.08

44

12. E3

85

11.67

21

8.08

7.54

Source; Bureau of Census, Special Report to ERA, Research and planning Division, 1933. Data cover 78 establishments.

a/ Emplo;'"ees include all wage earners, b/ Wages include wages paid to v;age earners listed, c/ Computed by i'JRA, Research and Planning Division, - Average weekly payroll divided by average number of employees

Seasonal Variation

The Industry in many parts of the country is largeljr seasonal, particularly in the xlorth. The digging of clay and quarrying of shale are difficult in the rainy season and also, in the North, in the winter season. These interruptions, as well as the low volume of sales and the inability of the smaller plants to finance heavy inventories, have tend- ed toward intermittent operations of plejnts. The extent to which opera- tions are oeriodic has already been indicated in Table VII, above.

Table XIII, below, gives monthly employment in the Industry as a whole du.ring 1933. It will be seen that employment in February, the low month, was not much more than a third of that reported for August, which was the high month. Census data on monthly payrolls are not avail- able.

8592

-1 CI- TABLE XIII

Seasonality of Si.iploy.ent in the Four Main Divisions of the Industry 19333:/

Week Ending rlearest the 15th

Jan'oar;'" Fehriiary

Ntunher of En-olo^-ees

IJarch April Hay Jtme

July

Aligns t

Septemher

October

I'lovenher

Decenher

Average

6,315 5,984 6,856 8,199 10,399 12,430

14,853

15,406 13,351 12,719 11,077 9,353

10,520

Source: Bureau of Censvis, special report to HRA., Research and Planning Division, 1935.

a/ Data cover those estahlisliments nhose major prod- uct vas either comnon hricl:, face 'brich, paving hricl:, or hollou "building tile.

Chart I shons the seasonality of emplojaient hours, and T/ages for the Industry as defined hy the Code, i.Ionthly data for 1933 and 1934 on emplo^Tient, earnings, and hours u:oon Trhich the chart is hased are pre- sented in Tahle ZSIII, helov/.

Trend of Average Weekly TTages

?or Coraparisons of average v/eeliy 'i7ages. Table XIV, "beloi.7, has been prepared from Census data for the years 1929, 1931, and 1933, and from Bureau of Labor Statistics data for 1S34. These figures show the sane general trend as volume of production. 1/ There was a decided decline fron 1929 through 1933, but a fairly substantial rise in 1934 as conpared with 1933, This increase in weei:l3r wages anounted to 30 per cent, r/here- as total value of production increased 35 "oer cent.

8592

-■15- [EilBLE XIV

Aver?s<^ V/eekl3;- .'Zarinni^T ir the Tbur l.iain j)iv-isior.s cf the l\v~ns'-rys^

Year Kvv^'ar^c Weekly Harnin^ss

1929 $21.45

1S51 15.25

195.3 10.14

1934 IS. 00 ll/

Sonrce: 1929, 19C1. aiic. 1933 fjt,-ar33 comput-d fro:n Tahle VIII,

a-OGve; 1934 frcn Burerru of Laoor StatiatiCR, as explained in the source tmi -cootnotD cj cf Tsiole ILilll helov?.

Si,' Data c.Qvei tho?e escaulishrients whose rae.jor product was

either ccinnon hriok. fa.cs "brick, paving "b.-ick, or hollov; "building ti].e.

h/ Hefers to the Industry ae aefmed ^o^j the Cede. See

Ta'ble JCiIII "below.

Percentage Tfcich Coat of La'oor ^ s nf YaJv p -if prodT"".t

In spite of rnoderni^^atton of plnjits and tr.r. u-ts o+ in-orov(d riacxiiner;'-, lahor continues to "be tho ciie-"" factor in the cost of the finished product. It ha.s "been olained that lajor repres-'-itp a larg; •, • ovoportion of the totrl . cost of sti-.-ctui-el cl:..-- pro.....^-;,, t]'an it do,-;; o-.i any coTipe-i/in..; jiaterial. ^ The per cent that ■aai;es constitute of the total vaT^ie of the ■.roauct 1^: sho^/n in Taole XV, "belo.;?. for -.he years 1929, 1931, px_d 193L.'

The difference in the cost of prodviction on a spread of 10 cents -ler ho-ar in the ""onsic wage scal<^ T-ill, in thp average size plant, (50,000 to 60,000 "bricks per da"^, or its equivalent in tonnage) enovni tu 50 cents per thousand "brick. .?-/

1/ See Tr^ol'? V.L, ahove.

2/ Puhlic Hjarin^ on the Str-act-.j:, .1 Clay InCLuotry, llovein'ber 3, 1933,

page 17.

8592

-16-

Chapter III

MATrSIALS: SA^ AKD SEMI-PROCESSED

Principal liaterials Used in the Industry

The ciiief raw materials used in the mamxfacture of structui'al cl3y prod- ucts axe shale, surface clay, e.nC. fire clay. PJliile at least one of these raw materials is found in each state, certain highei' grades of rav/ material v/hich are used in producing the better types of products ore found only in certain areas. Ohio and Pennsj'lvania are noted for their fire clay deposits. Of necessity, plants are "built where raw materials ore found and this situation makes for long hairls to market in maJiy instances — especially for certain types of products, such as face brick and structur-jl clay tile.

Cost of materials. Fuel, and Purchased Electric Energy.

Taole XV below, gives the total value of product, total labor cost, rnd total cost of materials for 1929, 1931, 1933, and 1934, and shov/s the relation of each of the latter items to the total value of the product.

TABLE XY

Relation of Total Labor and Total Materials Cost to Total Value of Product in the Pour Main Divisions of tue Indus ti-y a/

Cost of Materials, Fuel Total Value Wages Paid and Rirchased Electric Yeeix of Product Energy

(000" s) Amount Per Cent Ajno-ujit Per Cent

(000' s) of Total (OOP's) of Total

192S $120,659 $51,499 42,7 $35,587 29.5

1931 47,542 21,372 45.0 13,970 b/ 29.4

1933 15,134 5,598 34.7 4,550 28.2

Source: 1929 data from Census of Ivianuf actures, 1929, "The Clay Product In6.ustries; " 1931 data from Census report on The Cl3.y Products Industries, 1931; and 1933 data from special Census report to ilRA, Researcn and Planning Division, 1933.

a/ These data include those establishments -.vhose major product T/as either comiiion brick, face brick, psving brick, or hollow building tile.

b/ Cost of Materials for 1931 estimated by NRA, Research and Planning Division.

Fael cost is an important factor in the manufacture of the Industrie's products. In areas such as New England, New York, and certain southeastern states, as v/ell as western states, coal must be shipped on comparativel3r long hauJLs. Even in states tl'iat produce lower grades of coal, it is ofter neces- sar;'- to ship in nigher grades of coal for use in certain burnings.

Table XVI below, gives the value of purcnases of materials, fuel, and electric energy for the years 1929 and 1933 for the four branches of the In- dustry'-. Establishments are classified according to major products.

8592

-17- TABLE XVI

Cost of Materials, Fuel, and Purchased Electric Energy, by Main Divisions of the In- dustry lC;a9 and 1933. (in thousands )

Division of the 1929 1933

Industry

Total $35,587 a/ $4,55y

Common Brick 15,170 2,464

Pace Brick 10,756 999

Paving Brick 2,239 §:/ 348

Hollow Building Tile 7,422 739

Source: 1929 data from Censur, of Manufactures, 1929, "The Clay Products In- dustries;" 1933 data from special Census report to Wk, .lies^rxc-'. .^d Pl....nninc^, Division, 1933.

a/ Includes vitrified "brick used for p-urposes other than ; saving.

Equipment

The equ-ipment used in plant operations is largely of midwestern manu- facture, but belt conveyors, one of the heavy supply cost items, are mostly manufactured in the south and in Mew Englsind.

8592

-18-

Chapter IV PHODUCTIOW AlID DISTEIBUTION Value and Vol-ume of Prodncts ly States

Altho-ugh structural clay products of one or more tranches of the Industry are manufactured in each state, there is a consideratle movement of these ^ products across state lines. Face trick and stractural clay tile in particur- lar, and common "brick, and paving "brick to a somcv/hat lesser extent, are in- volved in interstate movement.

Tables XVII, XVIII, XIX and XI belov/, shovr the total volume and value of production for the major proaucinf; states for the four "branches of tl.e In- dus tr;;'-.

TABLE XVII

Volume and Value of Common Brick Produced in Principal

States

1929

1931

1934

State

Volume

Value Volume

Value

Volume

Value

(000,000'

3)

(000 's) (000,

000' s)

(000 's)

(GOG

,OCO-s)

(000' s)

U.S. Total

5,505

$58,732 2,

315

$21,652

1,

099 $11,419

Ala"bana

143

1,301

59

421

41

338

California

287

2,967

95

881

20

180

Connecticut

146

1,753

86

956

34

,360

Georgia

143

1,146

48

281

40

302

Illinois

836

7,805

143

1,297

75

702

Indiana

112

1,083

21

190

13

140

Kentucky

47

515

26

226

23

256

Maryland

97

1,285

43

496

17

225

Massachusetts

93

1,435

51

656

31

373

Michigan

153

1,764

28

301

26

250

Mississipr)i

96

941

26

202

13

116

Missouri

104

l,3fe'3

43

427

19

207

Net: Jersey

248

2,848

135

1,508

53

626

New York

764

7,515

601

4,970

156

1519

North Carolina

217

2,010

95

652

60

565

Ohio

260

2,559

87

891

29

310

Pennsylvama

418

5,584

162

1,315

93

1088

Tennessee

99

1,074

29

284

36

353

Texas

182

1,812

65

522

39-

365

Virginia

151

1,971

66

762

62

665

All Others

899

5,971

40G

3,974

219

2,478

Source: 1929

data from •ies , " Ta"b]

Census of Manuf

actures

, 1929. a from C-

'clay Pro due 3nsus Report

ts In-

dusti

.e

5; 1531 and 1

934 dat

fer

Clay

Products Industries, 1931

and 1934.

8592

-19-

11A.BLE ;:viii

Volrcne aiid Value of Paving Brick Produced in Princiioal States

State 1929a/ 1931

1934

"oltune Value Volwne Value VolMine Value

(000,000's) (OOO's) (000,000's) (OOO's) (000,000's) (OOO's)

U.S.

Total

274

Illinois

21

Indiana

4

Kansas

14

Ohio

116

Pennsylvan-ia

35

All

84

Others

$o,971 115 $2,411 100 $2,232

495 25 500 17 321

78 a/ a/ 6 112

291 a/ a/ a/ a/

2,305 69 1,509 44 1,074

773 5 96 13 326

1.829 15 306 20 399

Source: 1929 data from Census of Ilanufactm-ers. 1929. "The Clny Products Industries", Tal3le_5; 1931 and 1934 data from Census reports on The Clay Products industries. 1931 and 1934, Table 3.

a/ ITot availahle separately "but included in "All 0th

ers".

3592

-SO- TABLE XIX

Volune and Value of Hollon Tile Produced in Princi-nal States

State

192?

)

193]

1'

934

Vol-jjne

Value

Volume

Value

Volune

Value

(000 to

ns)

(000 's)

(000 tons)

(000 's)

(000 tons

) (OOO's)

U.S. Total

3,318

$19,835

1,646

$8,774

635

$3,501

California

81

674

52

385

17

135

Illinois

230

1,400

101

385

55

233

Indiana

232

1,675

86

776

26

200

Iowa

234

1,597

113

595

64

400

Kansas

106

533

25

107

10

48

Kentuclzy

16

103

9

43

11

37

Missouri

40

261

26

135

16

85

ilew Jersey

434

3,496

248

1,695

a/

a/

Kerr York

80

466

45

211

15

74

Ohio

745

3,443

399

1,639

73

401

Pennsylvania

253

1,433

110

448

53

255

Texas

109

603

53

237

39

196

All Others

708

4,151

379

1,962

257

1,435

Source: 192!

3 data ; o-stries'

from

II rn

Census

of I'laiwi'actur

es, 1929. "The Clav dr^ta from Census re

Products

Indc.

aole 5;

1931 and 1934

3ports on

The

Clay P:

ro an

cts Indu

stries 1951,

and 1954,

Table 3.

a,': ITot available separately but included in "All Others".

8592

-SI- TABLE IQZ

■Volume and Value of Face Brick Produced in Princi-oal States

— __-

1'

329

1931

19

34

State

Volume

Valuo

Vol

jme

Value

Volume

Value

(000 2

,000» ,139

s)

(OOO's) $36,120

(000

, 000 '

s)

(OOO's)

(000

,000'

s)

(OOO's)

U.S. Total

905

$13,271

305

$4,749

Illinois

220

3,407

81

1,145

28

415

Indiana

130

2,269

50

721

15

264

Missouri

56

1,133

24

365

7

101

Ohio

501

7,4-02

218

3,280

59

977

Pennsylvania

466

8,013

211

3,094

65

955

Texas

96

1,759

43

541

16

228

All Others

670

12,157

276

4,125

115

1,809

Source: 1929 data from Census of i.Ianufactiires. 1929. "The Clay Products Industries", Tahle 5; 1931 and 1954 data from Census reports on The Cla?.^ Products Industries. 1931. and 1934, Tahle 3.

Interstr.te Ilovenent of Goods

Moveinents of structural clay products in interstate commerce are demonstrated oy Tahle XXI, helon, nhich shows oroduction and constiniotion for 1929 of all of the hrici: products of the Industry hy states.!/ ^Penn- sylvania, Ohio, and Illinois, the leading producing states, accounted for ahout 38 per cent' of total "oroduction but consui.-.ed only ahout 30 per cent. Actually more than 8 per cent was aoubtless "e:qported" to other states he- cause the particular hinds and qualities of hrick wanted might not have heen available within the home state and hecau.se the production center nearest the consumer may have been located on the other side of the state boundary. Other relatively important producing states which consumed less tlmn they produce and therefore had a balance to send out were Indiana, ITorth Carolina, Texas and Virginia.

In the converse situation were those states which used considerably more brick than they produced and thus had to "import" the product from other states. Conspicuous e:anples were Hew York^, Ulchigan, Massachusetts and I'iew Jersey.

!/ It is emphasized that the figures given in Table 7zd are in the nature of estimates only. As e-^-plained in footnote a/ the -oroduction data are not completely broken down fov all states. Rirthermore, as indicated below, it does not necessarily Tallow that cons^jmption within a state is met out of that state's production merely because the quantity of brick produced there is large enough to supply it.

359-2

o o o

(C f^ ifl

•I

U I

/

l!e\7 York Cit;--, for exr.nple, cor.s-ui.ies structiiral cla7 products fron plants located in llev Jorse^'-, p3nns7lvniiia, Ilassaclmsetts, Connecticut, Ohio, and a ntu.Aer of other states. The Chicago narlret draws -uijon the prod\iction of plants located in Ohio, Indiana, Ilisso-uri, Iowa, ITisconsin, and elsenhere, St. Loais, i:iF.EOirri, sit-jatod on a state border, cons-'Jjnes a considerable vol-une of structural clay products fron Illinois, Ohio, 17isconsin, sjid llebracka. Other large cities located in states of small production also dvaw upon plaiits in other states. On important face- brick contract jobs for e.-:iamplc, it is usual tliat there is keen conpeti- tion fron producers in several states, A survey made of plants located in Ohio and Uestern PennsylvoJiia (states producing the largest anoimt of structural clay products) indicated that between 40 and 50 per cent of the products are shipped outside of these states, Kansas has 15 large plants within 70 miles of the Oklahoma liue, some only a mile or two from the line. Oklaliona has 5 plants which are on the average fewer thr.n 70 miles from the state line, l/

1/ Fablic Hearing on tho Structural Clay Products Industry, Augjast 8, 1933, page 19,

8592

state

-22- T1A.3LE ]Ci:i

Comparison of Production and Coni-ujiption of 3ricl:, bj^ States, 1929

Value of Pro duct icn^/ ( C^Q ' s )

Percentage of Tctali/ Production

Value of CoriS^unption (OOP's)

Percentage of Total Co n s'on'otiOxi

Total

$103, 95e

100.0

$65,05C

100.0

Alabama

l,92o

1.3

Arizona

440

A

Arkansas

433

4

California

3,587

0.5

Colorado

944

.9

Connecticut

1,763

1.7

Delaware

230

-->

District of Columbia

-

—

Florida

208

Georgia

1,447

1.4

Irifljio

49

.0

Illinois

11,935

11.5

Indiana

3,430

5.3

lovra

1,059

1.0

Kansas

1,527

1.5

Kentuc]:y

648

.5

Louisiana

520

.5

Ilaine

311

.3

Maryland

1,285

1.2

Massachusetts

1,435

1.4

Hichigan

2,130

2.0

Minnesota

438

.4-

Mississippi

1,106

1.1

I.Iisso\u'i

2,436

2.3

Montana

111

.1

Nebraska

711

.7

ITevada

—

M

ITew Hampshire

526

.5

xTew Jersey

3 , 633

'D ^'O

lien Liercico

82

lieu York

7,515

7.2

ITorth Carolina

2,470

2.4

llorth Dalrota

31

.1

Ohio

12,877

12.4

Oklahoma

1,544

1.5

Oregon

190

.2 (Continued)

652

1.0

156

.2

306

.5

2,494

3,8

223

.3

1,299

2.0

346

.5

501

.9

286

.4

1,299

2.0

34

.1

5,392

9.3

1,421

2.2

756

1.2

564

1.0

442

.7

322

.5

168

.2

925

1.4

2,915

4.5

4,375

7.5

6V3

1.1

158

.2

1,433

2 ?

165

.3

574

.3

1

-

88

.1

2,301

4.3

49

-

12,137

13.6

650

1.0

147

.2

6,632

10.4

532

.8

187

.3

8592

-24- TA-T!T,T. }CCI (Continued)

Conparison of Production and Conswnption of Brick, "by States, 1929

Value Of

Percentaf;e

Value

of

Percentage

state

Product iona/

of

TotalaJ

ConsujTOt

ion

of

Total

(OOO's)

Pre

) duct ion

(000'

s)

Consumption

Penns-^lvania

$14,529

14.0

$5,933

9.2

Bliode Island

-

—

437

.8

South Carolina :■

904

.9

221

.3

South Da]:ota

-

—

105

.2

Tennessee

1,709

1.5

703

1.1

Texas

3,551

3.4

1,719

2.6

Utah

777

.8

243

.4

Vermont

~

~-

72

.1

Virginia

2,694

2.6

878

1.3

TTashin^ton

924

.9

430

.7

West Virginia

902

.9

223

.3

ITisconsin

876

.8

1,212

1.9

TJ3''Oinin.2:

72

.1

18

»

Others

a/

7,839

7.6

Source: Census of I :&nuf act-ares, 192G.-p.S48 (Connon, ?ace, Vitrified, Enaneled, Hollow Brick); Census of Constr^iction, 1930, pl20 (Common, ?ace, Paving, etc.. Brick)

a/ Production d^ta for most states are inconplete in that the value of production vas given ^oy groups rather than indivi dually for the less important states in the various industries. Tlie total for these groups is given under "Others." Complete data are presented only for Belaware, Plorida, Kansas, Ilississippi, Ohio, Pennsylvania, South Carolina, Utali, Virginia and YJisconsin,

T?roe of Distrib-ative Outlet ij

The chauinels of distrihution of struct^oral clay products in the fonar "branches of the Industry var:/ from one "branch to another. Face orick and structural clay tile are largely sold throiVih retail and wholesale dealers. Those plants which engaged principall"/ in the production of face "brick in 1929 made 64 per cent of their sales to such dealers, 13 per cent to their own wholesale "branches end the remaining 23 per cent to consumers (including industrial consumers). In the case of hollow "building tile these per cents were 69, 4, a;id 27, Ccxion "brick is also marketed to a considera"bie e::tent tlirough dealers "but perhaps more ths.ii half of the total is sold direct to contractors and other consumers. In 1929, these direct sales amounted to 55 per cent of the total. Paving "brick, on account of the character of its markets, is practically never sold tliro-'j^-jh dealers hut is sold direct to inaustrial and other lar-re consumers and contractors.

1/ Tliis section is "based on de,ta pu":olished "b;^ the Biureau of the Census in I)istri"bution of Sales of Llgjiufacturing Plants, 192"".

8532

I

I

Vol-uine of IriTiorts and E:30orts

Imports and exoorts of the products of the Industry have never "been considered as ira-oortrnt items.

Shifts of Centers of Froduction

'There have "been no material shifts of centers of production in the Industry for man;'- years.

8592

e

♦

-26-

Chapter V

TRADE i'E ACT ICES

Unfc.ir Trade Pra.cticep prior to the Code

At various tiroes in 1930 end. 1931, the Federal Trade Corar:ission held conferences v^ith representatives of three oranches of the Industry (structural Clay Tile, Pace Bricl:, and Cora::ion Brick), Pair trade practice n:les '.7ere issued for each of these groups by the Coaiiiission on Au^iast 39, Au^aist 17, and July 19, 1931, respectively covorir..-';; rules on Cj^L'tain lonf-'.ir trade prictices such as:

1, Discri'riin?,tion in ririce "between different purchasers.

2, Secret paynent of rebates,

3, Giving money or anything of value to agents of

customers or of coinj-^etitor' s custodiers,

4, Maliciously inducing or atten3ting to induce breach

of existing contracts.

5, False disparage.ient of gracie or quality of go ode 3f

competitors,

6, Sefanation of conpetitors,

7, Initation of trade mar]:s, trade names, or slogans.

8, Shipment of goods on consigniient T7ith the intent and

effect of injuring e. competitor.

9, Deviation from established standards of the Industiy.

10, Shipping or delivering products v.hich do not conform

to the samples subnittfd,

11, Coercing the p-'urchase of several or a group of products

as a condition to the purchase of one or more products under the exclusive control of the seller.

These uere..nhat aro.knoun as "GlaLis A" rules and a.re enforceable by decree of the Commission, In adcition to them, certain other rules, hnovm as "Class 5" rules '.vere published at the time. These latter rules are permissive in the groups affected and are not necessarily enforceable by order of the Comnission,

The Class A unfair trade practices ruf er: ed to by the Federal Trade Commission are all covered, though in aifferent forrr., by the Trp.de Practice Rules of the Code, and in adcition the folloijing rules were approved:

12, Repudiation of contracts v-ritten or oral,

13, llaking misleading guarantees of products,

14, The giving of premiums in connection with sales,

15, Sale of inferior products on under st,anding that superior

products would be delivered.

16, Interference with contracts.

8592

I

-27-

17, Halving of lump sum bids or installed prices, thereby

concerling unit prices or guaranteeing that any specific quantities would do a jot,

18, Acceptance of stocks or "bonds except at current

marketable cash value in payment for Industry products.

Unfair Trade Practices Under the Code

The former Code Authority has stated that after the Code became effec«. tive it had complaints or reports concerning alleged violations of the unfair trade practices described in Article XI, Sections a, "b, d, e, f, i, 0, and q, of the Code. These constitute essentially the items listed above as numbers 2, 4, 5, 5, 9, 10, 15, 16, and 17.

8592

-38-

Chapter VI

THE INDUSTRY - GEMERAL lilFOmiATION

Operations of the Indtistry

Hie manufacture of structural clay products begins with the quarrying, excavating, or raining of the raw materials. The materials are then ground and tempered with water, shaped into the type of imit being manufact-ored, dried preparatory to burning, bui'ned in kilns for periods ranging from two to tliree weeks, and sorted according to perfection of color, degree of burning, ate. The products are then ready for distribution. Some large concerns, manufacturing all or part of the products of the Industry, own or control thirty or more plants each, yet there are hundreds of small individually-o\¥ned conmon brick plants.

Trade Associations

During the years when building construction was more active, four national trade associations actively promoted the development of the Structural Clay Products Industry, These associations, which eIso sponsored the Code, were:

!• The Brick Manufacturers Association, foimded in 1918, representing the common brick manufacturers.

2, The inerican Face Brick Association, founded in 1912.

3, The National Paving Brick Association, founded in 1905.

4, Tlae Structural Clay Tile Association, fouiided in 1919,

Each of these associations has carried on advertising and research programs. In recent years the low dem.and for the products has curtailed these activities.

Late in 1934, Structural Clay Prodixcts, Inc., was formed as a single organization to promote the use of the Industry's products. While the National Paving Brick Association is carrying on its own work, due to the special nature, of that branch of the Industry, it is affiliated with the new organization. The Brick Manufacturers Association also is continuing its work — without affiliation — while the other two associations have ceased active work pending deteri'aination of the success of the new organization.

Orgaiiization of Labor

The United Brick and Clay Workers of America, with headquarters at Chicago, Illinois, represents organized labor in the Industry. It has been claimed by the Industry that, dujring many years of operations, both unionized and open shop, manufacturers have had comparatively few dis- putes with labor.

8592

-29~

Present Financial Condition of the Industry

No figures are available on the financial condition of the industry for the years 1929, 1931, and 1933. The earning capacity of the Industry very prohably follows the same trend line as does the value of structural clay products consumption. A comparison of the latter series with the estimated value of total construction indicates that a more extreme decline took place "between 1929 and 1934 in the Structural Clay Industry than in general con- struction, (See Tahle XXII helow)

TABLE XCII

Gompajison of Estimated Total Value of Construction and Total Value of Structural Clay Products Consumption (index, 1926 - lOO)

lear

Estimated Construction Value for 48 States a/

Structural Clay Products Consumption h/

1925 1927 1928 1929 1930 1931 1932 1933 1954

100.0 97.5

100.4 88.6 66,1 48.1 21.6 19.7 23,4

100.0 89.9 84.1 72.0 50.3 34.4 15.8 11.6 12.6

Source: As indicated in footnotes.

a/ Adjustment to totality hy IJEA Division of Review, of F. W. Dodge Reports for total construction contracts awarded in 37 states.

h/ Computed hy IIBA Division of Review, from Census of Manu?- factures figures. (Beginning stock, plus production, less ending stock.)

Effect of the Code

There was a marked increase between 1933 and 1934 in employment, payrolls and wage rates. Average hours worked per week were lower in 1934 than in 1933 and were subject to less extreme fluctuation. These series are pre- sented by months for 1933 and 1934 in Table XXII I, below, and in Chart I, supra.

Trade Marks

Although many manufacturers adopt trade names for their products and sell them under such names, there have been comparatively few trade names regis- tered. Certain types of Industry products are given names and occasionally such names are stamped upon the product.

8592

-SO-

TABLE XXIII. Factory Employment, Payrolls, Houro, and Wages 1933-1935 a/

Average

Month t/

Inde'^es

(I9o3=100)

Hours WcTked Per

¥a

ges

Enploy- ■

Pay 1 311

s c/

Man-Hours i_\/

Average

Average

nent c/

T.eek e/

Hourly •

ey

Weekly c/

1933

Jan.

63,8

53.9

53.6

28.2

$.306

$8.75

Fel3.

65.2

55.3

56,3

29.0

.306

8.78

Mar,

67.2

57,1

52.2

31.1

.283

8.75

Apr,

74.8

62c 4

68.6

30.8

.289

8.60

May

95.3

88.3

105. 3

37.1

.275

9,54

June

110.0

108.8

127.8

39.0

.278

10.38

July

131.5

133.5

153.1

39.1

4 285

10.65

Augo

137.2

149.2

145.7

35.9

.322

11,43

Sept,

131.3

135.2

122.8

31.4

.352

10.82

Oct.

114.3

126.0

111.3

32.7

.361

11.64

Nov,

109i,7

123.0

101.0

30.9

.364

11.57

Dec,

99.8

107.3

91.2

30.7

.373

11*29

Average 100,0

100.0

100.0

33.0

.316

10.20

1934

Jan,

80.4

87.9

69,0

28.8

.399

11.48

Feb.

82.2

94.4

68.5

28.0

.373

12.01

Mar.

95.1

100.8

80.1

28.3

.382

11.51

Apr.

119.7

144.6

111.6

31.2

.399

13.09

May

134.4

167.6

128.9

32.2

.421

13.46

June

138.7

178.2

137.1

33.2

.427

13*90

July

133.4

169.0

128.3

32.3

.431

13.70

Aug.

134.2

165.7

128.7

32.2

.421

13.49

Sept.

129,2

155a

120.0

31.2

.428

13.31

Oct,

125.2

157,1

120.8

32.4

.423

13.84

Nov,

127.0

155,2

125.2

33.1

.414

13.56

Dec.

108.6

124.1

99.9

30.9

.413

12.56

Averagi

3 117.3

141.6

109.8

31.2

.411

13.00

Source:

Unpublished data

secured by the Bureau of Labor Statistics in

cooperation with

the

Division of Re

search and Planning,

IffiA.

a/

Reporting

establishments considered

. to be almo;

3t comple

itely covered

by the St:

ructural

. Clay Products Industry Code.

^

Figures reported

were

for the payro

11 period nearest the 15th of the

month.

£/

Based upon a representative sample

covering an

average

of

291 estabr-

lishments

and about 5

,680 employees

in 1933. The sampl

.e was some—

what larger in 1934.

^

Computed:

Index

of employment times average hours worked

per week

reduced t

0 1933=100.

e/

Based upon a representative sample

covering an

average

of

120 estab-

lislments and about 2,340 employees in 1933. The sample was con- siderably larger in 1934.

8592

-31-

Imports

Imports have been snail in volimie and have not appreciably affected the Industry,

Experts

Men who, by training and experience are thoroughly familiar with the Industry, are:

Manufacturing, sales, and administration

Mr. Paul B, Belden, General Manager Belden Brick Company, Canton, Ohio.

Mr, P. W, Bottesworth, President,

Western Brick Company, Danville, Illinois.

Mr, W. Gardner Long, Treasurer, New England Brick Company, #3 Park St. , Boston, Massachusetts.

Mr, 0. W. Renkert, President,

Metropolitan Paving Brick Company, Canton, Ohio,

Ceramics

Mr, L. B. Hainey, Vice President,

Fallston Company, New Brighton, Pennsylvania,

Professor G, A. Bole, Experiment Station, Ohio State University, Columbus, Ohio,

Professor C. W. Ps,rmelee,

Department of Ceramic Engineering, University of Illinois, Urbana, Illinois.

8592-#