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Full text of "Evidence study"

BOSTON PUBLIC LIBRARY 



3999906317536 6 




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NATIONAL RECOVERY ADMINISTRATION 

— APti 8 1936 



RESEARCH AND PLANNING DIVISION 



EVIDENCE STUDY 
NO. I * 
THE AUTOMOBILE MANUFACTURING INDUSTRY 



Prepared by 

FRANK EVANS, Jr. 



September, 1935 



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



TIIE EVKET^ICE SrODY 37RISS 

The SVIDESCE STUDIES vrere originally Tilanned as a r.eans of gathering 
evidence hearing- upon various legal issues which arose ijii'ier the Kationa.l 
Industrial Recovery Act. 

These studies have value quite aside from the use for which they were 
originally intnnded. Accordingly, they are now made available for confidential 
use within the Division of Revie-,?, and for inclusion in Code Histories, 

The full list of the Evidence Studies is as follows". 



1. Autonohile Manuf act^iring Ind. 

2. Boot and Shoe Mfg. Ind. 

3. Bottled Soft Drink Ind. 

4. B-ailders' Supplies Ind, 

5. Chemical Mfg. Ind. 

6. Cigar Mfg. Industry 

7. Construction Industry 

8. Cotton G-arnent Industry 

9. Dress Mfg. Ind. 

10. Electrical Contracting Ind. 

11. Electrical Mfg. Ind. 

12. Fah, Metal Prod. Mfg, , etc. 

13. Fishery Industry 

14. Furniture Mfg. Ind. 

15. C-eneraj. Contra^ctors Ind. 

16. Graphic Arts Ind. 

17. Gray Iron Foimdry Ind, 

18. Hosiery Ind. 

19. Infant's & Children is Wear Ind. 

20. Iron and Steel Ind. 

21. Leather 

22. torn be r & Timher Prod. Ind. 



23. 
24. 
25. 
26. 
27. 
28. 
29. 
30. 
51. 
32. 
33. 



35. 
37. 
38. 

'70 

40. 
41. 
42. 
43. 



Mason Contractors Industry 

Men's Clothing Industry 

Motion picture Industry 

Motor Bus Mfg. Industry (Dropped) 

ITeedlework Ind. of Puerto Rico 

Painting « ?a~pe rhanging & Decorating 

photo Engraving Industry 

plumbing Contracting Industry 

Retail Food (See No. 42) 

Retail Ltunher Industry 

Retail Solid Fuel (Dropped) 

Retail Trade Industry 

Ruhher Mfg. Ind. 

Rubber Tire Mfg. Ind. 

Silk Textile Ind. 

Structural Clay Products Ind, 

ThroiTing Industry 

Trucking Industry 

TZaste Materials Ind. 

Wiiolesale & Retail Food Ind, (See No. 

Wide sale Fresh Fruit & Veg. 31) 



In addition to the studies brought to completion, certain ma,terials have 
been assembled for other industries. These ijiATSRIALS are included in the series 
and are also made available for confidential use within the Division of Reviev/ 
and for inclusion in Code Histories, as foxlows; 



44. Wool Textile Industry 

45. Automotive Parts & Equip. Ind. 
4£. Baking Industry 

47. Canning Industry 
4B. Coat and Suit Ind. 



49. 
50, 
51. 
52. 
53. 



Household C-oods & Storage, etc, (Drop- 
Motor Vehicle Retailing Tra.de Ind, ped) 
Retail Tire & Battery Trade Ind. 
Ship & Boat Bldg. & Repairing Ind, 
Wholesaling or Distributing Trad^ 



L. C. Marshall 
Director, Division of Reviev? 



* c^^^\.\ ^^^ 



aiLu^i 



COWTEETS 



Vng-e 



Foreword 2 

Chapter I THE NATURE OE THE Ii€)U3TEY 2 

Definitions of the Industry 2 

Origin and G-rov;th of the Industry 3 

Number of Comapnies 4 

Famter of Plants, "by States 5 

Capital Invested 6 

Numlier of Failures 6 

Value of Products 7 

Volume of Production 7 

Competition 9 

Chapter II LABOH STATISTICS 

Numher of Sraployees 10 

Seasonality of Employment. 10 

Employees in Related Industries 10 

Total Annual Wages 12 

Per cent Lahor is of Value of Products 12 

Hourl.3'' Wage Rate. , 13 

Hours Worked Per Week 13 

Weekly Earnings 13 

Employees Under 16 Years of Age 13 

Employment and Wages in 

Principal States 15 

Chapter III MATERIALS: RAW AND SEMI-PROCESSED 

Cost of liaterials 16 

Source of Raw Materials 18 

Amounts Spent for Machinery, 

Principal Materials and Fuel 18 

Chapter IV PRODUCTION AND DISTRIBUTION 

Value and Volume of Production 

In Principal States 19 

Shipments across State Lines 19 

Value and Volume of Products 

Exoorted. 20 

Adverti sing 21 

Trade Marks 22 

Mode of Shipment 22 

Distrihution of Products 22 

Volume of Business, "by States 23 

Chapter V GEl^IERAL IIvFORi.iii.TION 

General 27 

Trade Association 27 

Labor Organizations 27 



'!/ 



oOo 



8543 



-1- 



TABLES 

Chapter I 

Page 

Table I Production, Miolesale V.-^-lue, 
and .Registration of All Cars 
and Trucks, for Specified Years 3 

Table II NumlDer of Companies, 1934 4-5 

Table III Faraber of Plants in 

Principal States 5 

Table IV Estimates of Capital Invested 

in the Automobile llar/of acturing 

Industry, 1919-1933 , 6 

Table V Number of Conipanies Entering, 
Leaving, and Remaining in the 
Passenger Automobile Industry, 
1902-1926 V 

Table VI New Passenger Car Registrations 
for Specified Members of the 
Industry 8 

Table VII New Truck Registrations for 

Specified Members of the Indus- 
try, 1933 and 1934 8-9 

Chapter II 

Table VIII Employment and Payrolls 

In The Industr;'- As Defined 

By Tne Co de ■'— 

Table IX Emplo^rjnent In The Aiitomotive 
And Related Industries, By 
Kind of Employee s, 1933 12 

Table X Average Hourly And Weekly 
Earnings And Honors Worked 
Per Week B^^ Uonths, 
September 1333 - April 1935 14 

Table XI Wage Earners JLnd Wages In The 
"Motor Vehicle ■•?" Industry, By 
Principal States, 1929, 1931, 1933 15 

Chapter III i 

Table XII llaterials Used In The 
*i.uto mobile Manufacture 
iVnd Repair , 1933 , 17 

8543 -ii- 



TiiBliES (Cont'd) 

Chapter IV 

Page 
TalDle XIII Value of Products By 
Principal States 
1929, 1931, and 193S 19 

Tatle XIV Ner; Chevrolet Registrations, 
In States Having Sfo 
Chevrolet Factories Or 
Assembly Plants, 1954 20 

Table XV Value And Volume Of 

Motor Vehicles Exported, 

1929-1933 '. .,. 20-21 

Table XVI Expenditm-es For national 
Radio And l.Iaga,zine 
Advertising By The 
Automotive Industries 21 

Table XVII Shipments Of Assembled 
Passenger Cars And 
Motor Trucks, By 
Mode of Transit 22 

Table XVIII l^lumber of Hetail And 
^olesale Outlets, by 
States 24 

Table XIX Registrations of New 
Passenger Cars, 
By States , 1933 25 

Table XX Registration Of Wev; 
Commercial Cars, 
By States, 1933 26 



oOo 



8543 



-111- 



-1- 



AUTOMOBILE KAHUFACTURIWG INDUSTRY 
Forerrord 

The data appearing in this report come, in the main, from 
the folloTring sources: the National Automobile Chamher of Com- 
merce; the Code Authoritv (Automohile Manufacturers' Association); 
the Sureau of the Census; the trade journals. Automotive Industries 
and Autonohile Topics ; The Automohile Industry , "by Hal-oh C. Epstein; 
and the Research and planning Division, KRA. The National Auto- 
mohile Chamber of Comi.ierce is a trade association which publishes 
statistics in an annual booklet, Automobile Facts and Figures . 
The National Automobile Cham.ber of Commerce changed its name in 
1935 to the Automobile lianuf acturers Association, and this asso- 
ciation constituted the Code Authority for the Industr""". 

No information has been assembled for the section on Trade 
Practices which forms Part V in the "Outline for Collection of 
Evidence." Fragmentary material which falls under Part VI of 
the Outline is therefore presented as Chapter V in this report. 

The differences between the Code and Census definitions 
of this Industry are exolained in Chapter I. 



8543 



-2- 

Chapter I 

THE NATUEE OP TFIE IKDUSTEY 

Definitions of the Industry 

The Code defines the Automotile Industry as follows: 

"The term 'Industry' as used herein includes the manufactur- 
ing and assemhling within the United States of motor vehicles and 
hodies therefor, and component and repair parts and accessories 
hy manufacturers or assemhlers of motor vehicles. 

"The term 'motor vehicles' as used herein means automohiles, 
including passenger cars, trucks, truck tractors, "busses, taxi- 
cahs, hearses, amhtilances, and other commercial vehicles for use 
on the highway, excluding motorcycles, fire apparatus, and tractors 
other than truck tractors." 

The Census of Manufactures for 1931 gives the following definition for 
the "Motor Vehicle" Industry: 

"The classification 'Motor Vehicles' applies to all manufac- 
tTjring estahlishments whose principal products are 4-wheeled or 
6>^wheeled motor-propelled (internal-comhustion or electric) steer- 
a"ble vehicles, except industrial trucks. Estahlishments engaged 
primarily in the manufacture of motor-propelled fire apparatus, 
street sweepers, road oilers, etc., are also classified in this 
industry," (Manufacturers of motorcycles are classified in the 
Motorcycles, Bicycles and Parts Industi^r, ) 

In addition, the Census of Manufactures has a separate industry'' 
classification "Mo tor- Vehicle Bodies and Motor-Vehicle Parts," which includes 
estahlishments engaged in the manufacture of todies and parts either for sale 
as such or for transfer to motor- vehicle manufacturing establishments. Thus, 
if an automohile-manufacturing company manufactured its parts and "bodies in 
one plant and assembled these hodies and parts into automohiles in another 
plant, the Census would include the first plant and its employees, payrolls, 
etc., in the Motor-Vehicle Bod.ies and Parts Industry, and the second plant 
in the Motor Vehicle Industry, 

It can thus "be seen that the Census classification "Motor Vehicles" and 
the Code classification are not coextensive. The Census data on "Motor 
Vehicles" do not include separate plants engaged in the manufacture of 
todies and parts even though they are owned and operated "by automohile manu- 
facturers. Consequently, Census figures on number of plants, wage earners, 
and wages understate the size of the Automohile Manufacturing Industry as 
defined hy the Code. On the other hand, the Census material includes in- 
formation on fire apparatus, street sweepers, road oilers, etc., hut the 
total volune of production in these categories is incidental. Except for the 
inclusion of these comparatively minor groups, however, Census data on value 
and volume of production can prohahly he considered as applicahle to the 
Industry as defined hy the Code, since the value of all "bodies and parts 



wo-uld "be included in the value of the finished motor vehicles, regardless of 
whether they were produced "by plants classified in the "Motor Vehicle" or 
"Motor-Vehicle Bodies and Motor-Vehicle Parts" Industries. 

Origin and Growth of the Industry 

The period from 1890 may Tse said to have witnessed the origin of the in- 
dustry in a commercial sense. From an ezainina,tion of Census figures made hy 
the Automohile Manufacturers Association, it is stated that there were hut 
four automohiles manufactured in the United States in 1895. The subsequent 
expansion of the industry is indicated in Tahle I. 

TABLE I 

Production, Wholesale Value, and Registration of 
All Cars and Trucks, for Specified Years 





Production 


Wliolesale Value a/ 


Numher of 


Year 


(No. of Units) 


(in Millions) 


Registrations 


1900 


4,192 


$ 


4.9 


8,000 


1905 


25,000 




40.0 


78,000 


1910 


187,000 




225.0 


468,500 


1915 


969,300 




701.8 


2,445,666 


1920 


2,227,349 




2,232.4 


9,231,941 


1925 


4,427,800 




3,015.2 


19,937,274 


1929 


5,621,715 




3,576.6 


26,501,443 


1931 


2,472,359 




1(426.7 


25,832,884 


1932 


1,431,367 




793.0 


24,115,129 


1933 


1,986,208 




987.4 


23,827,290 



Source: 
a/ 



national Autoraohile Chamber of Commerce, Automobile Facts and Figures . 
(1934 Edition) 

These figures are lovrer than those shown in the discussion of "Value 
of Products" and in Tahle XIII "below. The difference is in part, at 
least, due to the inclusion in the Census figures in the latter tahle 
of the value of goods made as secondary products of the Motor Vehicle 
Industry and also to the inclusion of the value of fire apparatus, etc 

For the year 1934, the Automohile Manufacturers Association estimated 
that factory sales of cars and trucks totaled 2,753,831 units, having a whole- 
sale value of $1,470,431,634. 

The important position which the Industry has come to occupy in the 
national economy may he judged from data contained in the United States 
Summary of the Retail Census, which indicated that sales of the motor vehicle 
retailing trade which were $6,407,512,000 in 1929 and $2,127,720,000 in 1933 
accounted for 13.0 per cent and 8,5 per cent of total retail sales of the 
nation in the respective years. 

During its period of growth and in its majority the Industry has dis- 
played characteristics which are now inevitably associated v;ith it. Of these, 



"4^ 

the most striking is the small number of separate onter^irises comprising it. 
This featiore is a natural result of the very large investment required for 
mass production of completed units whose cost runs into hundreds of dollars. 
A consequence of this concentration of production into the hands of a few, 
whose individual products are ?/ell-recognized, has "been the development of 
a specialized nechanism of distritution, the dealer system, which has served 
as a model in the formation of similar methods adopted "by many other in- 
dustries. Under this system ea.ch manufacturer ha-s a group of representatives 
in every state, usually handling his own product exclusively. The welfare of 
the group is so hound up with that of the manufacturers that a frequently- 
used gauge of the prospects of aiv manufacturer is the increase or decrease in 
the numher cf dealers handling his make of car. 

Uumher of Companies 

The total numher of companies which reported to the Automohile Manufac- 
turers Association under the Code for the Automohile Hanufacturiig Industry 
is shown "by states in Tahle II. 

TABLE II 
Numher of Companies, 1934 



State 



Septemher. 1954 



U. S. Total 

California 

Colorado 

Illinois 

Indiana 

Maryland 

Massachusetts 

Michigan 

New Jersey 

New York 

North Carolina 

Ohio 

Pennsylvania 

Texas 

Yfeshington 

Wisconsin 



75 a/ 

3 

1 

6 

6 

1 

1 
21 

2 

9 

1 
10 h/ 

8 c/ 

1 

1 

4 



Source: Code Authority (Automobile Manufacturers Association). 

a/ The number of manufacturers included in the Census classification 
"Motor Vehicles" in 1933 was 90 (covmting the General Motors 
Organization as 6). It is believed that the difference between the 
Census and Code Authority figures is in part accounted for by the 
inclusion of companies manufacturing fire apparatus, etc. in the 
former. Also the number of comoanies may have decreased between 
1933 and 1934. 



8543 



(footnotes continued) 



-5- 

t/ International Harvester headqioarters are in Chicago, Taut since its 
iDiggest plant is in Springfield, Ohio, it is coiinted in Ohio. 

c/ Mack Trucks headquarters are in xJew York "but since its largest plant 
is in Allentown, Pennsylvania, it is counted in Pennsylvania. It 
also has two plants in New Jersey hut these were not counted. 

Humher of Plants, "by States. 

Table III gives the total number of plants in principal producing states. 
In the Code Authority tabulation, when a company has more than one mamofac- 
turing unit in the same city, the group of units is shown in Tahle III as 
one plant. 

The differences "between the figures from the Census and Code Authority 
are "believed ascri"ba"ble to differences in the classifications of plants as 
pointed out in the Foreword and in the footnotes of Ta'ble III. 

TABLS III 

Number of Plants in Principal States 



Number of Plants, as Re-ported by 



State 



Census of Manufactures 
1929 1931 1933 



Code Authority 



September 
1933 a/ 



September 
1934 a/ 



"U. S. Total 

California 

Illinois 

Indiana 

Michigan 

New Jersey 

New York 

Ohio 

Pennsylvania 

Texas 

Wisconsin 

Other States 



244 



178 



122b/ 



170b/ 



23 


13 


9 


19 


14 


10 


15 


15 


9 


40 


29 


24 


£/ 


c/ 


c/ 


18 


18 


14 


35 


25 


14 


14 


13 


8 


0/ 


c/ 


c/ 


15 


12 


7 


65 


39 


27 



8 

8 

11 

28 

6 

16 

18 

11 

8 

7 

49 



173 

8 

8 

11 

27 

6 

16 

19 

13 

8 

7 

50 



Source: Data for 1929, 1931 and 1933 from Census of Manufactures . "Motor 

"Vehicles;" for September 1933 and 1934 from Code Authority (Automo- 
bile Manufacttirers Association). 

a/ Ntunber of plants refers to those owned by companies reporting to the 
Code Authority, (See Table II ). 

b/ The apparent discrepancy between the two 1933 figures is probably due 
to the fact that the Census classification does not include separate 
plants engaged l^holly in the manufacture of bodies or parts even 
though owned and" operated by automobile manufacturers. On the other 
hand, it includes raanufactxirers of fire apparatus, etc., who were 
not covered by this Code. 

c/ Not shown serparately; inclixded in "Other States." 



8543 



• 6^ 



Capital invested 



Capital invested in the Industry serves as a fiirther gauge of its size 
and growth. Estimates relative thereto are presented in Tatle IV. 

TiBLE IV 

Estimates of Capital Invested in the 
Automobile Manufacturing Industry?-, 1919 - 1933 aj 



Year 


Cars 


Trucks 


Total 


1919 


$ 784,560,761 


$230,782,577 


$1,015,443,338 


1920 


897,953,600 


306,425,000 


1,204,378,600 


1921 


1,134,166,000 


289,334,000 


1,423,500,000 


1922 


1,154,103,335 


302,546,620 


1,456,649,955 


1923 


1,281,364,300 


290,358,100 


1,571,722,400 


1924 


1,373,372,426 


317,677,686 


1,691,050,112 


1925 


1,503,290,062 


384,738,743 


1,888,028,810 


1926 


1,646,589,759 


442,908,566 


2,089,498,325 


1927 


1,643,989,116 


436,668,548 


2,080,657,664 


1928 


1,578,021,207 


387,289,301 


1,965,310,508 


1929 


1,518,714,814 


437,972,847 


1,956,687,661 


1930 


1,442,275,653 


438,532,580 


1,880,808,223 


1931 


1,215,200,000 


380,600,000 


1,595,800,000 


1932 


1,118,600,000 


371,300,000 


1,489,900,000 


1933 


1,012,548,000 


336,418,000 


1,348,966,000 


Source! 


national Automooile 


Chamber of Commerce, 


Automohile Facts and Eig- 




ures, (1934 Edition) 


• 





a/ These figures represent net tangible assets of United States motor 
vehicle manufacturers, and do not include parts, accessory, "body 
and tire manufacturers. Net tangible assets are determined "by de- 
ducting good will and current liabilities from total assets, 

number of Eailures 

It is to be expected that an industry showing such large increases in 
volume of sales would attract many new firms; likewise it may be expected 
that severe competition would result in many failures. A record of conrpanies 
entering and leaving the Industry for the period from 1902 to 1926 is given 
in Table V. It should be noted that this tabulation covers only the 
passenger-automobile industry. 



8543 



-7- 

TABLE V 

Kumter of Companies Entering, Leaving, 
and Remaining in the Passenger Automobile Industry, 

1902 - 1926. 





Humter 


Number 


Kumber of 




Itonber 


H-umber 


lumber of 


Year 


of En- 


of 


Companies 


Year 


of En- 


of 


Companies 




trances 


Exits 


Remaining 




trances 


Exits 


Remaining 


1902 


•-■.1. 


— .M 


12 


1915 


10 


6 


75 


1903 


13 


1 


24 


1916 


6 


7 


74 


1904 


12 


1 


35 


1917 


n 
(J 


6 


76 


1905 


5 


2 


38 


1918 


1 


6 


71 


1906 


6 


1 


43 


1919 


10 


.4 


77 


1907 


1 





44 


1920 


12 


5 


84 


1908 


10 


2 


52 


1921 


5 


1 


88 


1909 


18 


1 


69 


1922 


4 


9 


83 


1910 


1 


18 


52 


1923 


1 


14 


70 


1911 


3 


2 


53 


1924 


2 


15 


57 


1912 


12 


8 


57 


1925 





8 


49 


1913 


20 


7 


70 


1926 


1 


6 


44 


1914 


8 


7 


71 










SoTorce: 


Epstein, ! 


Ralph C. 


f The Automobile 


Industry 


(1928) 


Chart 28. 



Of particular significance is the decline from 1921 to 1926 in the num- 
ber of concerns remaining in the industry. Fully developed data of identical 
character for the years 1927 to 1934 are not available; it may be noted, how- 
ever, that it was during this period that makes previously enjoying consider- 
able public favor disappeared from the market. 

According to Dun and Bradstreet there were 8 failures in the Automobile 
Majiufactxiring Industry in 1934, No failures were recorded for the first 
three months of 1935, 

Value of Products 

Reports of the Census of Manufactures show that the value of products 
of the Motor Vehicle Industry declined from $3,722,800,000 in 1929 to 
$1,568,000,000 in 1931 and still further to $1,097,000,000 in 1933. As pre- 
viously stated, it is believed that the Census figures on value nay be con- 
sidered as approximately applicable to the Industry as defined by the Code, 

Volume of Production 

The volume of production of passenger cars and motor trucks, as measured 
by new car registrations, is shown for leading members of the Industry in 
Tables VI and VII. New car registration in 1934 showed a substantial in- 
crease over 1933, The information on pasr.enger cars indicates, however, that 
despite this improvement, the number of registrations in 1934 was less than 
half the 1929 registrations. The improvement has been very irneven among 



8543 



different members of the Industry; a num'ber of the smaller producers ~ for 
examijle, Willys Overland showed in 1934 on].y a small fraction of their 1929 
registrations. 

TiiBLE VI 

"Eevi Passenger Car Registrations for 
Sipecified Members of the Industry 



Member of Industry 



1929 



1931 



1933 



1934 



Total 

General Motors 
Pord Motor Co. 
Chrysler Motors 
Studebaker Motors a/ 
Hudson Motor Co, 
G-rahan Paige 
Wash Motor 
Willys Overland 
Hupmobile Motor Co. 
Packard Motor Co. 
Auburn Motor Corp, 
Reo Motor Co, 
American Austin 
Continental Motor Co, 
Pranldin Motor Co. 

All Others 



4 


,025,300 


1,919,560 


1,493,794 


1,888,557 


1 


,315,700. 


830,390 


646,557 


752,375 


1 


,362,400 


535,240 


313,225 


532,589 




356,900 


229,830 


385,665 


432,195 




94,400 


51,360 


38,394 


43,300 




262,900 


62,100 


38,777 


59,817 




62,600 


19,320 


10,128 


12,887 




108,800 


39,600 


11,353b/ 


23,615 




206,700 


51,550 


15,314 


6,576 




45,900 


17,530 


6,726 


5,566 




46,200 


16,350 


9,081 


6,552 




19,300 


31,130 


5,038 


5,536 




17,900 


6,800 


3,623 


3,854 




___ 


2,960 


3,675 


1,057 







_ — 


3,310 


953 




11,100 


3,900 


1,329 


360 



104,500 



21,400 



1,598 



324 



Source: Chilton Company, Inc., Automotive Industries . February 27, 1932,page 
175, and February 9, 1935, page 176. 

a/ Pierce Arrow is member of Studebaker Corp, 

b/ LaPayette is not included for 1933, 

TABLS VII 

Hew Truck Registrations for 
Specified Members of the Industry, 1933 and 1934. 



Member of Industry 



1933 



1934 



Total 

General Motors 
Pord Motor 
Chrysler Motor 
International Harvester 
Diamond T 



245,869 

106,482 

62,397 

28,034 

26,658 

4,139 



403,886 

167,956 

128,250 

48,252 

31,555 

5,440 



8545 



(Continued on following page) 



-9- 
TABLE VII (Cont'd) 

MemTjer of Indus try 1955 1954 

Reo Motor Co, 5,042 5,055 

White Truck Co. 1,584 5,965 

Federal Truck Co, 1,560 1,962 

Mack Truck Co. 1,652 1,830 

StudelDalcer Truck Co. 1,872 1,697 

BroclCTfay , 075 1,213 

Auto-Car Co. 1,127 1,159 

Stewart - 684 756 

Indicna 1,252 729 

American Austin 1,055 494 

All Others 5,858 5,655 

Source: Chilton Com-Dany, Inc., A utomotive Industries . Fehruary, 1955, page 
176. 

Competition 

The nature of the competition affecting the Industry is in some respects 
highly individual. In the first place, competition is entirely within the 
Industry - the automohile has no real competitor as a means of personal, 
quick, and evex--ready transportation; and it is douhtful that, as instruments 
of pleasure, the rivalry offered hy water craft, airplanes, musical instru- 
ments, etc, has any si<snificant effect on sales volumes. As a means of 
freight transportation, the importance of the automohile is hot fully devel- 
oped; certainly, at present, the incursion into that field is "being made "by- 
it rather than against it. 

Competition within the Industry is, again, almost entirely among domes- 
tic manufacturers. There are, to "be sure, efforts "by foreign makers — ■nota'bly 
in the expensive passenger car field — to sell in the United States, The vol- 
ume of their sales is so small as to "be immaterial; according to Automo"bile 
Facts and Figures , 1/ the numher of motor vehicles imported into the United 
States in 1929 was 750 and in 1955, 554. 

Competition within the Industry is extremely keen, and since the product 
of each mainufacturer is readily identifiahle, methods of competition involve 
means of direct and swift appeal to the constimer. Thus, a price change on 
the part of one producer is likely to lead to other revisions, not only for 
cars in the same price class "but also in immediately higher or lower price 
"brackets. It is to "be noted in this connection that the Industry does not 
esta"blish varying prices for different geographical areas within the couatryj 
the only varia"ble element in the cost to the purchaser is the cost of trans- 
portation from point of shipment to point of delivery. 



1/ Editions of 1929 and 1934, 



8543 



-10- 
Gharoter II 

LABOR STATISTICS 



E'om'ber of Eraployees 



Factory ein-'olo:;ment in tlie A-utomo''Dile Industry declined from an average 
of more than 425,000 workers in 1929 to less than 200,000 in 1933. Three 
employment series are presented in Tatle VIII. The series in the second 
column has "been obtained from reports from practically 100 per cent of the 
manufacturers operating under the Code for the Automobile Manufacturing In- 
dustry. Since this series is not availa^ole prior to September 1933, a 
series hased on thirteen of the cu.rrently reporting companies ^-'ho could 
furnish pre-Code data are presented in the first column. The figures in 
the third colimn have "been compiled "by the National Autorao"bile Cham'ber of 
Commerce. Although the April 1934 figure of the Cha[n"ber is about 40,000 
less than the A;oril figoire in the second column, it is believed that in a 
general vaj the Chamber figures may be considered reliable indicators of 
employment prior to 1953. 

Seasonality of EraDloynent 

The irregularity of employment in the Automobile Industry which re- 
sults in part from the introduction of now models in the early spring month? 
is one of the chief problems of the industry. 

As shoT7n in Table VIII above, during the year 1934, the number of fac- 
tory employees fluctuated bet-reen 208,188 in October to 368,565 in April. 
The suggestion has been made that "regularization can be substantially 
achieved by fcill announcement of new models and a foil date for the Auto- 
Do'oile show." 1/ 

Employees in Belated Industries 

Table IX is presented to indicate in a broader way the importance of 
the Automobile Industry as a factor in national employment. A significant 
fact brought out by this table is that the 190,027 workers directly em- 
ployed in 1933 by the Automobile Hanuf acturing Indiistry formed only a 
small fraction of the total workers associated with the automobile and re- 
lated industries. 



1/ Research and Planning Division, IIRA, "Preliminary Report on Study of 
Regulari nation of Employment and Improvement of Labor Conditions in the 
Automobile Industry" 
(January 23, 1935), Page 10 of Summary. 



8543 



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-12- 



TiOLE IX 



EliPLOYIiENT III THE ,'.UTO:..OTIV.i AID RELATED INDUSTRIES, 
3Y KIIE) OE EilPLOl'EES, 1933 



Kind of EmploA'"ees 



llirmber of Workers 



Employed directly: 

Motor Vehiclfj Eactory T/orkers 

Tire, parts and accessory factory v/orkers 

Dealers axid sales'-nen, r.otor vehicles, parts, 

accessories, tires 
R-arage and repair shop enployees 
Bus, Tnj:i and priv'rte chauffeurs 
Truck drivers 
Autorioliile financing:, insurance, advertisin,"., 

and niscellrneous 

Total eriplced directly 

Employed indirectlv: 

G-asoline refining and retailing 
Iron and steel 'vorkers 
Eon-ferrous netal \'orkers 
Railroad and stecmship workers 
Lumber and woodworkers 
Electric poorer and fuel "orlrers 
Highways 

hiscellaneour; other raw na.terial supplies 
Total eiToloyed indirectly 

Grand Total 



190,02? 
200,000 

290,000 

405,000 

450,000 

1,500,000 

12,000 
3,047,027 



420,000 

60,000 

10,000 

50,000 

5,000 

3,000 

900,000 

30,000 

1,478,000 

4,525,027 



Source: national Automobile Chamber of Comnerce, Automobile Eacts and 
Eigures_, (1934 Edition), 

Total iuinual VJa-c^es 

The only fi.'^^res a,vailable on total annual wages for the Industry as de- 
fined by the Code are those from, the National Automobile Chamber of Con- 
merce shovm in Table VIII. These figures indicate that total Y'ages have 
declined from $775,479,000 in 1929 to $233,508,000 in 1933. As has been 
pointed out in the discussion of employment, it is believed that the Chanbe 
figixres give, in general, an accurate picture of conditions. 

Totol weekly payrolls for the entire Industry are shown in Tpble VIII, 
Since September 1933 the Industry's total weekly payroll has ranged betv/eer 
$3,269,000 in November 1933 end. $11,302,000 in April 1935. 

Per Cent L abor is of Value of Proaucts 



In 1929 the wage bill of $775,479,000 formed approximately 22 per cent 
of the estimated wholesale value of product of $3,576,500,000. In 1933 
wages formed slightly less than 24 per cent of the total value ($233,508,00i 
out of $987,400,000). Some caution should be exercised in the use of these 
8543 



-13- 

figares since it is not possible to determine precisely the comparaliility of 
the 1.7 age ojid value data, l/ 

Hourly Wage Rate 

Jroci January 1934, average hourly earnings rose from S3. 3 cents to 74,4 
cents in October, 1934. liiiring the first four months of 1935 hourly earnings 
ra:^_ged het^-een 71, 5. and 72,8 conts. These data, vfhicK are sho'Tn in TaTsle X, 
are not availahle.. prior to Scjptenhcr 1933 nor are they availatile for nales kr 
fe-:o,les separately. 

Hours T ' Jor]:ed Per ¥eek 

As shown in Tahle X, the v^orking i-eek has ranged between 26.7 hours in 
November 1933 and 40.9 in April 1935. Comparable data for males and females 
separately are not available. 

Weekly Earnings 

Weekly earnings are closely associated with the length of the working 
■week and tend to rise a,s it lengthens. In the Automobile Industry weekly eai 
ings have ranged from $17.57 in November 193S to $29.76 in April 1935. (See 
Table X) . The Automobile Industry in April 1935 paid higher average weekly 
earnings than any other Industry shown in the Bureau of Labor Statistics in- 
dustry classification which appears in the Trend of Emplo^nnent . 

Emnloyees Under 16 Years of Age 

Children have not been emr)loyed in the Automobile Industry in significai 
numbers. The Census of Occupations showed only 112 children 10 to 15 years 
old employed in automobile factories in 1930. 2j More recent information is 
no'i, available. 



1/ The National Aut om obile Chamber of Commerce figures on wholesale value 

were used rather than the Census value of products as it was thought thes 
figures \7ould compare more closely with the wage data which were also es- 
timated by the Chamber . 

2/ Fifteenth Census of the United States: 1930, Occupation Statistics , 
"United States Summary," p. 88. 

8543 



-14- 
TA5LE X 

AVEEAGS HOURLY ASD >7ESKLY EARKIHGS AHD HOURS WOKKED PER 
WEEK BY MONTHS, SEPTEMBER 1933 - APRIL 1935 



- - - - ' 




Average -oar Eraioloyee 


a/ 




Hourly 


Weekly 


Weekly 


Month 


Earnings 


Earnings 


Hours 


1933 








September 


$0,655 


$20.72 


31.6 


Octoter 


.657 


18.11 


27.6 


llovem'ber 


.659 


17.57 


26.7 


DecemTDsr 


.643 


19.48 


30.3 


1934 








January 


.638 


21.45 


33.6 


February 


.650 


24.34 


37.4 


March 


.677 


26.67 


39.4 


A-oril 


.724 


27.01 


37.3 


M'ay 


.725 


23.26 


32.1 


June 


.733 


24.33 


33.2 


July 


.733 


23.18 


31.6 


August 


.741 


21.92 


29.6 


Septerrfber 


.741 


21.31 


28.8 


OctolDer 


.744 


22.28 


30.0 


Ilovem'ber 


.743 


22.60 


30.4 


December 


.727 


25.55 


35.3 


1935 








January 


.717 


27.65 


38.6 


February 


.716 


28.58 


39.9 


March 


.721 


29.31 


40.6 


April 


.728 


29.76 


40.9 



Source: Computed ■b3'- the Division of Research and Planning, 
ICIA, from monthly reports suhniitted by individual 
automobile man^afacturers through the Automobile 
Manufacturers Association. For all practical pur- 
poses 100 per cent of the automobile manufactijring 
concerns submitted reports each month. 

a/ Covers production employees and auxiliary (maintenance 
and service) employees. 



8543 



BriTployment and Wapes in Principal States 

Incomplete information on tlie niira'ber of employees in leading states 
and their total wages has been assembled in Table XI. This table is based 
on Census data for the classification "Motor Vehicles" which are believed 
to cover only about half the employees shovm in Table VIII. l/ It is 
presented merely to indicate the concentration of the Industry in Hichigan, 
Ohio, Indiana, and a fev: other states. 

TAE^LE XI 

WAGE EARMERS MH) WAGES IK THE "MOTOR VEHICLES" IKDUSTRY, 
BY PRINCIPAL STATES, 1929, 1931, 1933 





Hujnber o 


f Wa^-e Earners 


Total Annual Wa 


ges 










1929 


1931 


1933 


State 


1929 


1931 


1933 


(Mi 


llions) 




U. S. Total 


226,116 


134,856 


97,369 


$366.6 


$156.7 


$103.8 


California 


5,443 


3,316 


2,121 


7.9 


4.7 


2.2 


Illinois 


3,. 234 


2,244 


2,268 


5.0 


3.0 


a/ 


Indiana 


20,573 


12,507 


7,033 


30.6 


14.4 


6.5 


Michigan 


108,796 


64,077 


59,724 


188.8 


75.2 


66.6 


New York 


10 , 603 


6,016 


3,286 


17.3 


8.1 


a/ 


Ohio 


28,727 


14,932 


6,938 


43,9 


14.9 


6.5 


Pennsylvania 


7,731 


5,853 


4,942 


11.7 


7.1 


4.5 


Wisconsin 


10,241 


5,856 


2,825 


16.2 


5.6 


a/ 


All Other States 


30,768 


20,055 


8,732 


45.1 


23.8 


17.2 


Source: Census of 


Man-'ji'actures, "Motor 


Vehicles 


^ II 







a/ Data not available. 



1/ For discussion of this difference, see Chapter I, section on 
"Definitions of tlie Industr'^. " 



8543 



-16- 

Chapter III 

MTERIILS: HAW Al'ID S3i,II -PROCESSED 



Cost of Materials 



The amounts spent liy tlie, AiitonolDile Industry for materials, fuel, -- 
and purchased electric energy may oe plaxed at approximately $2,^1-01,000,000 
in 1329, $1,0UU,000,000 in i331, and $757,000,000 in I933, according to the Cem 
Censu.s of Manufactures reports on the "Motor Yehicles" Industry. 

Although the Code includes the nplcing of hodies and parts not reported 
under this latter classification, hut rs,ther u.nder "Motor Vehicle Bodies 
and Motor Vehicle Parts," the fact that the cost of materials going into 
those hodies and parts uhich emerge finally as vehicles uould he included 
in the total cost of materials reported oy the vehicle manufacturers mesjis 
that the data reported hy them can he considered rougiily applicahle to the 
Industry' as defined hy the Code. The aualification alrea6-y noted in the 
use of Census data hecause of their incliision of fire a,pparatus, etc., ap" 
plies to the cost of materials. 



25U3 



-17- 

Tlie importpjice of the Industry as r. fr.ctor in the consunption of ra'vr, 
se:-..i--processed and f-ally-processed nr.terialc ua:/ "be judged fron Table XII. 



TABLE XII 



I.L4.TEaiAlS USED III TIE AUTOMOBILE 
lviAI.JUFACTU1ffi Ai3 EEPAIR, 1S33 









Aiiount 
Used in 
Mam>- 


Per Cent of 
Total Produc- 
tion Used by 






Unit 


facturing 


Automobile 


Material 




(In Thousands) 


and llepairs 


Industrs^- 


Steel a/ 




gross tons 


3,250.0 


19.2 


Iron, mallei 


able 


tons 


17^.0 


55.0 


Gray iron 




tons 


3S7.3 


9.3 


Sufoer 




long tons 


2S3.0 


73.0 


Pla.te glass 




sC|Us.re feet 


3i+,S02.5 


I4O.O 


Lun"ber, han 


inood 


bop.rd feet 


302,550.0 


lU.o 


Leather, 










u.pholsterj'- 




squa.re feet 


6, £05.0 


5U.0 


Aluminum 




tons 


10.0 


23-5 


Copper 




tons 


6'4.0 


15. i^ 


Tin 




long tons 


7.2 


11.1 


Lead 




tons 


156.0 


35.^ 


Zinc 




tons 


2^.0 


7.1 


ITicltle 




pOUJlds 


6,750.0 


2U.0 


Cotton b/ 




bales 


^31.5 


6.9 


Mohair 




pounds 


3,500.0 


22.0 


Lumber, sof- 


tuood 


board feet 


i6U,3GS.o 


- 


Cloth, 










upholstery 


0/ 


yards 


22,050.0 


- 


Paint and 










Lacruer b/ 




gallons 


6,625.0 


- 


Hair and 










Padding b/ 




pounds 


25,257.0 


"* 


Source/ Ea.- 


tional 


A^i.tonobile Chamber of Com-merce, Aut 


omobile Pacts oiid 



Pigures, (1S3'-!- Edition) e::cept -fxiere othenrise indicated. 

a/ Pigures from Iron Age . Do not include tonnage sold by steel 

Jobbers to repair shops or steel sold to automobile manufactuirers 
in the form of bolts, nuts, aiid rivets. 

b/ Por use in nanu.facturing motor vehicles in the United States only. 



The usefulness of the fig-ares presented in TsJble XI is some'jhat 
lessened by the fact that they include materials used in repair uorh. 



S5U3 



-18- 



e::act proportion of these naterials t'oin^ into tlie manufacture of nerr 
ca.rs is indeterminalDle. 

Source of Haw Materials . 

The domestic sotirces of tbx! i.iaterials iised in the Industry are in- 
dicated by the acconpanyinf; nap of the United States \7hich shons the rcxr 
ma^terial contributed by ea^ch atate. liap I, in conjunction with Tp.bles 
III a.bove and XVIII below, gives strilrin^ evidence of the nanner in which 
the Industry draws its naterials fron every corner of the country, ca/rries 
on its manufacturing processes in co-;paratively few sta,tes, and distributes 
its finished product throughout the United St?.tes. 

Amotmts Spent for liachinery, Frinci'.^rl H ate ria ls, 
and Fuel 

Data are not available on the pj-^.our-ts spent by the Autonobile Indus- 
try for various ra,v7 materials nor for ecuiprient. The Census of Ilanufac- 
tures report on "liotor Vehicles" for 132S Suudivides _the total of i52,U01,- 
511,763 for materials, fuel and purchased energy into $2,379j^9S,0S9 ?or 
rnaterie.ls a.nd $22,013,67^ for fuel and purchased energ;', A simila^r 
allocation of costs is not given for 1931 ^^^- 1933« 



25^3 



«y 



fill II III 



y 



-19- 

Chapter IV 

PHODUCTIOW AlvnD DISTRIBUTION 

Value and Volume of Production in Principal Sta.tes 

Betrreen 1939 and 1933 the relative importance of Michigan in the Automo- 
bile Industry, as nie;:\sured hy value of products, has increased. Computations 
made from the figures in Table SII show that in 1939 and 1931, Michigan pro- 
duced hetrfeen 40 and 42 per cent of the total value of products in this In- 
dustry and that in 19S3 the proportion has risen to almost 54 per cent. It 
should "be emphasized that this increase is merely relative. Every state 
listed in Tahle XIII, including Michigan, has experienced severe declines in 
value of goods produced. 

A corresponding distribution of the numher of vehicles produced in these 
states is not available. 

Shipments Across State Lines 

Complete information on interstate shipnents of automobiles cannot be 
shovEi, but the figures assembled in Table XIV are indicative of the interstate 
movement of the products of the Industry. This table deals only with 
Chevrolets, but it s]ioi'g that in 1934 more than 550,000 new Chevrolets were 
registered in states v;hich had neither Chevrolet factories nor assembly plants 
Simila,r tables on other leading makes would imquestionably present the same 
general picture. 

TABLE XIII 

VALUE OP PRODUCTS BY PRIatCIPAL STATES 
1939, 1931, Al'JD 1933 

Value of Products (in Millions' 



State 1929 1931 1933 

U. S. Total $3,722.8 $1,568.0 $1,097.0 

California 138.3 67.7 46.1 

Illinois 62.4 25.3 a/ 

Indiana 208.2 114.5 45.9 

Michigan 1,549.7 635.9 588.3 

Hew York 232.3 153.4 a/ 

Ohio 387.4 136.6 49,7 

Peniisylvania 100.5 41.1 36,2 

Wisconsin 219.2 97.2 a/ 

All Others 824.8 295.9 330.8 

Source; Census of I.Ian ui'actur es, "Motor Vehicles." 
a/ Data not available, iiicluded in "All Others." 



8543 



RO- 



TABLE XIV 



HEW CHEVROLET REGISTRATIONS, IN STATES HAVING NO 
CHEVROLET FACTORIES OR ASSEHBLY PLANTS, 1934 



State 



NtimlDer 
of Reg- 
istration 



State 



Nurater 
of Reg- 
istration 



Total 



358,939 



Alabama 


10,680 


Arizona 


1,906 


Arkansas 


6,059 


Colora,do 


5,556 


Connecticut 


5,909 


Delaware 


1,511 


District of Columbia 


4,246 


Florida 


7,848 


Idaho 


2,364 


Illinois 


27,863 


Indiana 


14,574 


1 01.7a 


13,126 


Kansas 


11,077 


Kentucky- 


8,310 


Louisiana 


8,560 


Maine 


3,123 


Massachusetts 


16,337 


Minnesota 


12,639 


Mississippi 


6,848 


Montana 


2,897 


Nebraska 


7,088 



Nevada 


665 


Nerr Hampshire 


2,255 


New Jersey- 


15,495 


New Mexico 


2,261 


North Carolina 


16,824 


North Dakota 


2,790 


Oklahoma 


13,530 


Oregon 


'3,688 


Pennsylvania 


35 , 934 


Rhode Island 


2,928 


South Carolina 


7, 207 


South Dakota 


2,569 


Tennessee 


9,637 


Texas 


37,997 


Utah 


1,939 


Vermont 


1,225 


Virginia 


10 , 408 


Washington 


5,619 


West Virginia 


5,993 


Wyoming 


1,462 



Source: Automohile Toioics , February 16, 1935, pp. 106-107. 

Value s.nd Volurae of Products Exported 

The decline '-'hich began in 1930 in both the number and value of motor 
vehicles exported from the United States was checked in 1933. As can be seen 
from Table XV, 1933 showed noticeable improvement over 1932, but was neverthe 
less much below the levels of 1931 and the two preceding years. 

TABLE XV 



VALUE AMD VOLUl'.IE OF MOTOR VEHICLES EXPORTED, 
1929 - 1933 





Value 


( Thousands ) 


Nuiiber 


a/ ■ 




passenger 


Motor 


Passenger 


Motor 


Year 


Cars 


Trucks 


Cars 


Trucks 


1929 


$239,526 


$113,063 


451,079 


283,132 


1930 


110,356 


56,924 


247,764 


157,951 


1931 


53 , 048 


26,302 


134,048 


107,509 


1932 


25,633 


12,211 


72,889 


47,350 


1933 


33,945 


20,691 


98.115 


78,428 



8543 



(Continued on next page) 



-21- 

TABLE 2V (Continued) 

Soixrce: National Aiitoino'bile CharalDer of Commerce 

Automobile Facts and Figiir es (1934 Edition) 

a/ U. S. e>nDorts including foreign assenMies. 

Advertising 

Partial exiDenditures for national radio feind magazine advertising "by the 
Automotive Industries 1/ are shown in Tahle XVI. It i?ill he noted that the 
amounts siDent for radio hroadcasting were higher in 1933 and 1934 thaxi in 
1929. Expenditures for national magazine advertising in 1934 were only ahout 
half as high as in 1929. The data on radio advertising are for the National 
Broadcasting Corapan:/ and the Col-umhia Broadcasting System and include only 
national advertising, embracing the various networks or combinations thereof. 
Also, the figures include only the cost of the facilities and not that of 
the ta.lent. 

In addition to the radio and magazine advertising the Automobile In- 
dustry'- uses a large amount of space in local newspapers, but the volume and 
cost of this is not kno^-m. 

TABLE XVI 

EXPEND! TITiIES EOR NATIONAL RAllIO AITO lIAGAZIIniE ADVERTISING 
BY THE AUTOMOTI\^ INDUSTRIES a/ 



Amount Spent On 
Radio 
Year 



Radio 
Broadcas 


sting 


t/ 


Magazine 
Advertising cj 


$1,721 
1,314 
2,318 
3,770 


( Thousands ) 


$26,341 

17,648 

9,321 

13,760 



1929 
1931 
1933 
1934 

Source; Dennej' Publishing Company, Inc., New York, as reproduced in the 

Survey of Current Business published by the Department of Commerce. 

a/ It is not known how closely the groups represented by these figures com- 
pare with the groups included under the Code. 

b/ The data are for the National Broadcasting Co., (inc.) and the Columbia 
Broadcasting System (inc.), and include only national advertising, em- 
bracing the various net'-orks, or combinations thereof. They do not in- 
clude the records of local broadcasting nor the cost of program talent. 

c/ Data represent the grand total cost of all advertising for all classes of 
national magazines. All space costs are based on advertisers' one time, 
or single, insertion rate as quoted in "Standard Rate and Data Service," 
a.nd do not make allovjance for longer contract rates. 



1/ It is not knoxTO how closely the groups re-oresented by these figures com- 
pare "'ith the grouns included under the Code. 
8543 



Trade Marks 

The entire -Droduction of the Autonohile Industry is advertised and sold 
on a national acale under well estahlished names or "makes." 

Mode of Shipment 

Modes of shipping assembled passenger cars and motor trucks from factor- 
ies and assemhling plants in the United States, inc].uding exports, are shown 
in Tahle XVII. 

TABLE XVII 

SHIHENTS a/ OF ASSEliBLED PASSENGER CARS Am MOTOR TRUCKS, 

BY MODS OF TRANSIT 



Machine s 
Delivered 
By Railroad Machines Machines 
(Carloads Delivered Shipped 

Year of Machines) Overland "by Boat 

1929 723,631 1,958,738 199,576 

1931 283,858 1,050,545 85,609 

1932 130,820 706,977 51,103 

1933 198,287 930,303 126,258 

Source: National Automohile Chamber of Commerce, Autonohile Facts and Figures 
(1934 Edition). 

a/ From factories and assembling plants in United States, including 
exports. 

The importance of railroad transportation may he underestimated at first 
glance since the figures are in terms of carloads rather than number of 
machines. It is true however, that the relative importance of railroad 
transportation of cars and trucks has dimished since 1929. In 1933 only 27 
per cent as many carloads of cars were shipped by rail as in 1929, v^hile com- 
parable figures for overland and boat delivery were 47.5 per cent and 63 per 
cent, respectively. 

Distribution of Products 

The most striking characteristic of the system by which automobiles pass 
from manufacturer to consumer is its control by the manufacturer. The steps 
in the distribution mechanism are, in essence, from manufacturer to dealer, 
and from dealer to consumer, although actually most of the cars pass through 
a factory branch, or a "distributor," or both, between the manufacturer and 
the dea,ler. Many variations appear in this organization, but the units com- 
prising it are the same: man-ufacturer , factory branch, distributor, dealer, 
conswiier. Whatever variation occurs, effective control remains in the hands 
of the manufacturer. Consequently, dealers all over the nation watch eagerly 
for sales reports, production reports, and earning statements of manufacturers, 
for upon the manufacturer's welfare and performance, depends the extension of 
their dealer franchises. 
8543 



—23— 

Vol"uiae of Business, by States 

The num'ber of retail and wholesale automobile dealers in each state is 
shown in Table XVIII. At the end of 1933 there was a total of over 102,000 
retail outlets and 5,430 wholesale establishments which isere scattered over 
every state in the Union. Preliminary figures for 1934 released by the Auto- 
mobile Manufacturers Association indicate that the number of retail outlets 
had incres.sed to almost 106,000 and the number of wholesalers to 5,759, Of 
the 106,000, 36,900 were classified as car and truck dealers as compared with 
35,255 at the end of 1933. 

The value of volume of products sold to dealers in each state are not 
available. However, an indication of the amount of business done in each 
state can be had from Tables XIX and XX which show respectively the number 
of ne\7 passenger cars and trucks registered in each state in 1933. The 
largest numbers of registrations of both passenger cars and trucks were in 
New York, Pennsylvania was second in importance. 



8543 



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-25- 

TA3LE :CIX 
EEGISTRATIONS OP NEW PASSENGER CAHS, BY STATES, I933 





Hunter of Reg- 




Wanher of 


State 


istrations 


state 


Registrations 


U. S. Total 


1,493,79^1- 






Alaliama 


lU,5i4 


Nebraska 


16,393 


Arizona 


3,625 


Hevada 


1,32s 


Arkansas 


11,626 


lle\7 rlarapsMre 


6,597 


California 


9S,o6g 


Hew Jersey 


56,43s 


Colorado 


11,733 


ITevT Mexico 


3,716 


Connecticut 


2k, 213 


!Ie\7 York 


175,763 


Delaware 


4,119 


ITorth Carolina 


29,191 


District of Colunbir. 


1^.375 


llortli Dakota 


5,263 


Elorida 


17,92U 


Ohio 


101,213 


G-eorgia. 


24,119 


Oklahoma 


2S,9l4 


I dalio 


3,463 


Oregon 


10,123 


Illinois 


35,460 


Pennsylvania 


121,425 


Indiana 


40,176 


Rliode Islo/nd 


10,749 


loua 


27,2S6 


South Ca-rolina 


14,591 


Kansas 


24,23s 


Soiith Dakota 


4, S49 


Kentucky 


20,316 


Tennessee 


19,SS0 


Louisirjia 


16,300 


Te::as 


so, 447 


Maine 


9,074 


Utah 


4,704 


Maryland 


20,193 


Yemont 


3,77^ 


Massa.clmsetts 


63,24s 


Virginia 


22, ISO 


Michigan 


S5,6S2 


Hashing ton 


16,633 


Minnesota 


30,S29 


TTest Virginia 


15,326 


Mississippi 


10,62s 


Uisconsin 


2S,30S 


Missouri 


^5.773 


TTyoraing 


2,9^5 


Montana 


6,056 







Source: Conpiled 07 R. L. Polk and Corapraiy, and ol)tained froEi the 
Automotive Division of the Durea^i of Eoreign and Domestic 
Commerce. 



S543 



-,26- 

TABTjE XX 
KEGISTRATIOa OF ICEW COM.iERCIAL CARS. BY STATES. 1933 





Nunher of 




Huxiher of 


Sta,te 


Registrations 


state 


Registrations 


U. S. Total 


2U5,gS9 






Alabama 


h,o^k 


ilebraska 


2,713 


Arizona 


1,0S6 


llevada 


233 


Arkansas 


3,63s 


lieu .Hampshire 


i,7S3 


Cr,lifornia 


13,7SS 


Hevr Jersey 


7,^01 


Colorado 


2,USS 


llexi Mexico 


1,395 


Connecticut 


U,2U6 


lle\7 York 


20,200 


Delar/are 


S2S 


Ilorth Carolina 


6,597 


District of ColumTDia 


1,362 


Ilorth Dalcota 


1,107 


Florida 


U,is6 


Ohio 


11,150 


Georgia 


5,260 


Oklahoma 


U,9^1 


Idaho 


l,5U5 


Oregon 


2,USS 


Illinois 


ii,76U 


Pennsylvania 


19,991 


Indie.na 


6,121 


PJiode Island 


1,59s 


loT/a 


5,UU9 


South Carolina 


2,60Il 


Kansas 


i;,292 


South Dckota 


996 


Zentucliy 


i+,195 


Tennessee 


3,623 


Lou.isiana 


2,SS2 


Texas 


13,SS9 


Llaine 


2,Glk 


Utali 


1,56s 


Maryland 


3, SIS 


Vermont 


1,311 


Massachusetts 


9,511 


Virginia 


5,667 


Michigan 


9,OS5 


Uashington 


l+,002 


Minnesota 


5,722 


Uest Virginia 


2,9SS 


Mississippi 


2.752 


Uisconsin 


5,Ull 


Missouri 


S,535 


Uyoming 


937 ■ 


Montana 


2,055 







Source: Compiled by R. L. Polk and Conpany, and obtained from the 
Automotive Division of the 3ureau of Foreign and Domestic 
Commerce. 



S5^3 



-27- 

Chapter Y 
GElCERAi I1IP0EI.IATI0K 

General 

The foregoing data express quantitatively- the mechanism of the 
IncSxistry. It has teen shorm ho\7 the Inoxistr;'- gathers together sX central- 
ized points rav.', semi-processed, and fully-processed materials; converts 
then into completed units; and markets the finished product throughout the 
nation and in foreign countries. It has also heen indicated hon grea.t is 
the concentrated po\7er of a fevr management groups in the Industry. 

Particular manifestations of this povrer are found in the attitude 
of the manufacturer tonard the dealer, in vrhich there is to he found evi- 
dence of considerahle nonchalance as to the l?,tter's welfare. Tliis po\;er 
is also easily discerned in the relationship oet-jeen the manufacturer and 
his suppliers, rhere it has resulted in competition of the most ruthless 
sort sjnong such suppliers. 

Tra^de Association 

A peculiar feature of the Industr;' is the singularity of its "trade 
association" activities. There is hut one association of importance in 
the Industry'' — the Automohile Manufacturers Association — to which all im- 
portant memhers of the Industry, \7ith the exception of the ?ord Ilotor 
Company, "belong. It is an outgrowth of the Association of Licensed Auto- 
mohile lianufacturers, formed in I903 to regulate the use of the Selden 
patents. TThen ths^t Association's influence v/as lessened in I9II hy court 
decision regarding the va.lidity of these patents, there developed from 
its nemhership the Hational Automohile Chaifoer of Com.ierce. This name was 
clianged early in 1935 to the Automohile Uanufa.cturers Association. It is 
one of the strongest trade associations in the country and one with \7h0se 
activities the puhlic is verj'' familiar through its sponsorship of natters 
of direct puhlic interest. 

La.hor Organizations 

The relationship hetween labor aaid management in the Industi^ ha,s 
heen influenced hy the facts that until ybtj recent years there has heen 
a constantly and rapidly increasing gain in the nuraher of workers required, 
and that the wage scale of the Industr;.' has heen high. 5\irthemore, the 
physical conditions of plants have heen such as to contribute to the con- 
fort of workers to a greater degree tha.n those vrhich charsxterized many 
other industries. As a result, lahor trouble in the Industry has been 
rare until recent years, when terrific demands have been put upon the work- 
er as a result of the keen competition between manufacturers. ITortified by 
Section 7 (a) of the Hational Industrial Recovery Act, different labor unions 
hs^ve, since its passage, been active in organization work. Their efforts 
represent the only large scale agressive action along such lines since 1912, 
the earlier action having been unsuccessful. At present the three la,hor 
organizations of greatest influence in the Industry'' are: the American federa- 
tion of Labor, the Associated Automobile 'Jorkers of America, and the Llechan- 
ics' Educational Society of Ajnerica. Of these, the Aiierican Federation of 
Labor claims to h,ave the greatest menbership in the Industry,