(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Biodiversity Heritage Library | Children's Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Evidence study"

B°STON PUBLIC LIBRARY 



3 9999 06317536 6 



M\ 






rb 



A a \\ U * €■ 






*1 




3 1 






NATIONAL RECOVERY ADMINISTRATION 

■ ~ " JQ 

DIVISION OF REVIEW 



EVIDENCE STUDY 
NO. 3 

OF 



THE BOTTLE SOFT DRINK INDUSTRY 



Prepared by 
C. J. McMANUS 



August, 1935 



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



THE EVIDENCE STUDY SERIES 

The EVIDENCE STUDIES were originally planned as a means of gathering 
evidence bearing upon various legal issues which arose under the National 
Industrial Recovery Act. 

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

The full list of the Evidence Studies is as follows; 



1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 



Automobile Manufacturing Ind. 

Boot and Shoe Mfg. Ind. 

Bottled Soft Drink Ind. 

Builders* Supplies Ind. 

Chemical Mfg. Ind. 

Cigar Mfg. Industry 

Construction Industry 

Cotton Garment Industry 

Dress Mfg. Ind. 

Electrical Contracting Ind, 

Electrical Mfg. Ind. 

Fab. Metal Prod. Mfg. , etc. 

Fishery Industry 

Furniture Mfg. Ind. 

Generax Contractors Ind. 

Graphic Arts Ind. 

Gray Iron Foundry Ind. 

Hosiery Ind. 

Infant's & Children 1 s Wear Ind. 

Iron and Steel Ind. 

Leather 

Lumber & Timber Prod. Ind. 



23. 
24. 
25. 
26, 
27. 
28. 
29. 
30. 
31. 

tl>0 • 

OO « 

*— ' ■£ • 



oo * 
39. 
40. 
41. 
42. 
43. 



Mason Contractors Industry 

Men's Clothing Industry 

Motion Picture Industry 

Motor Bus Mfg. Industry (Dropped) 

Needlework Ind. of Puerto Rico 

Painting & Paperhanging & Decorating 

photo Engraving Industry 

plumbing Contracting Industry 

Retail Pood (See Wo. 42) 

Retail Lumber Industry 

Retail Solid Fuel (Dropped) 

Retail Trade Industry 

Rubber Mfg. Ind. 

Rubber Tire Mfg. Ind. 

Silk Textile Ind. 

Structural Clay Products Ind. 

Throwing Industry 

Trucking Industry 

Waste Materials Ind. 

Who7.esa.le & Retail Food Ind. (See No, 

Wholesale Fresh Fruit & Veg. 31) 



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



44. Wool Textile Industry 49. 

45. Automotive parts & Equip. Ind. 50. 

46. Baking Industry 51. 

47. Canning Industry 52. 

48. Coat and Suit Ind. 53. 



Household Goods & Storage, etc. (Drop- 
Motor Vehicle Retailing Trade Ind, ped) 
Retail Tire & Battery Trade Ind. 
Ship & Boat Bldg. & Repairing Ind, 
Wholesaling or Distributing Trade 



L. C. Marshall 
Director, Division of Review 



^v^ 



(A^l 



CONTENTS 

Page 

Foreword . . „ 1 

CHAPTER I - THE NATURE OE THE INDUSTRY 2 

Code Definition 2 

Total Number of Establishments 2 

Geographical Distribution 2 

Volume and Value of Production ... 3 

CHAPTER II - LABOR STATISTICS 5 

Huiaber of Employees 5 

Seasonality of Employment 6 

Annual Wages 7 

Weekly and Hourly Earnings and ..-, 

Hours Per Week ...... 8 

CHAPTER III - MATERIALS: RAW AND SEMI-PROCESSED 9 

Principal Materials Used ..... 9 

Value of Product, Labor Cost, 

and Cost of Materials 9 

- 0O0 - 



3310 -i- 



TABLES 



Page 

TABLE I ~ TOTAL NUI.iBER OP ESTABLISHMENTS 2 

TABLE II - NUMBER OP ESTABLISHMENTS, BY 

PRINCIPAL STATES 3 

TABLE III - VOLUME OP PRODUCT I Oil, BOTTLED 

CARBONATED BEVERAGES 3 

TABLE IV - VALUE OP PRODUCTION III THE 

BEVERAGE INDUSTRY, BY PRINCIPAL 

STATES 4 

TABLE V - AVERAGE NUMBER OP MANUPAC TURING 

EMPLOYEES, BY PRINCIPAL STATES 5' 

TABLE VI - PER CENT DISTRIBUTION OP TOTAL 

EMPLOYEES, BY PRINCIPAL KINDS 6 ' 

TABLE VII - SEASONALITY OP MANUPAC TURING 

EMPLOYMENT, 1934 7/' 

TABLE VIII - TOTAL ANNUAL MANUFACTURING WAGES, 

BY PRINCIPAL STATES 7 and 

TABLE IX - AVERAGE HOURLY WAGE RATE, AVERAGE 
WEEKLY EARNINGS , AMD AVERAGE 
HOURS PER WEEK 8 ' 

TABLE X ~ VOLUME AND VALUE OP PURCHASES 

OP MATERIAL, BY PRINCIPAL KINDS 9 / 

TABLE XI - VALUE OP PRODUCT, LABOR COST, 

AND COST OP MATERIALS 10 " U 

- oOo - 



8310 



-ii- 



BOTTLED SOFT VRWK INDUSTRY 

Foreword 

The Census of Manufactures data for "Beverages" as presented in 
this report are the most authentic pertaining to the Bottled Soft 
Drink Industry, hut it must "be noted that they do not exactly cover 
the Industry as defined "by the Code. The Chief differences are: (l) 
the Code affects establishments of all sizes while the Census data 
cover only those establishments doing an annual business of $5,000 or 
more; (2) the Code includes bottlers of medicinal and table waters 
while the Census classification does not; and, (3) the Code covers 
•office and sales activity as well as manufacturing proper, while the 
Census data cover only manufacturing. 

The first two factors do not result in significant discrepancies 
between the Census and Code classifications, except with regard to the 
number of establishments, because the bulk of production occurs in the 
larger establishments, .and because the bottling of medicinal and table 
waters is a minor part of the Industry. As a result of the third fac- 
tor, however, Census data on employment and payrolls are not applicable 
to the Industry as defined by the Code. Trade association estimates, 
where available, have therefore been used to present a more accurate 
picture. 

Bureau of Labor Statistics data, based upon a representative sam- 
ple covering about 40 per cent of the Industry, have been used to pro- 
ject Census data into 1934 and are therefore subject to the same limi- 
tations as the Census data. 

Due to the lack of authentic and detailed information on various 
topics appearing in the outline, certain sections and chapters listed 
there have been omitted from the discussion. 



8S10 



-2- 
CEAPTER I 

THE NATURE OE THE INDUSTRY 

Code Definition 

Code Number 459, approved by the President on June 7, 1934, defines the 
Bottled Soft Drink Indust^f in the following words: 

"The term 'Bottled Soft Drink Industry,' or 'Industry,' shall mean 
the manufacture and sale by the manufacturer of soft drinks in bottles 
or other closed containers. The term 'manufacture' includes (l) 
bottling, and/or (2) the manufacture of finished syrups for use in 
bottling by the maker thereof or under his supervision or control by 
contract or otherwise." 

T otal Number of Establishments 

Table I presents data to show the total number of establishments in the 
Industry for the years 1929, 1931, and 1933, as reported by the Bureau of the 
Census and the American Bottlers of Carbonated Beverages. As already pointed 
out, the figures prepared by the latter agency are much higher than the others 
due largely to the fact that the small concerns doing an annual business of 
less than $5,000 are not excluded. In addition, there is a slight discrep- 
ancy between the Industry as defined by the Code and the Census classifica- 
tion - bottlers of medicinal and table waters being included in the former 
but not in the latter classification. 

TABLE I 

TOTAL NUMBER OE ESTABLISHMENTS 



As Reported by the 

Year Census a/ Industry 

1929 5,154 7,000 

1931 4,250 7,000 

1933 2,903 6,600 

Source: Census of Manufactures , and American 
Bottlers of Carbonated Beverages. 

a/ Includes those establishments making "near beer" 
which accounted in 1933 for about 4 per cent of 
the total value of production in the Industry as 
defined by the Census. Establishments whose an- 
nual production is less than $5,000 are excluded. 

Geographical Distributio n 

In Table II which follows are presented Bureau of Census data to show 
the distribution of the establishments reported by it, among the most im- 
portant producing states. About one third of the total establishments are 
concentrated in the five states listed. 

8310. 



-3- 

TABLE II 
NUMBER OF ESTABLISHMENTS, BY PRINCIPAL STATES a/ 



State IS 29 1951 1933 

U. S. Total 5,154 4,250 2,903 

Pennsylvania 
New York 
Texas 
Illinois 
Ohio 

Total for 5 States 

Total for 43 Other States 

Per Cent 5 States are of Total 



468 




382 


210 


463 




384 


218 


325 




260 


210 


26? 




219 


156 


228 




194 


126 


1,751 


1 


,439 


920 


3,403 


2 


,811 


1,983 


34 




34 


32 



Source: Census of Manufactures . Establishments whose annual production is 
less than $5,000 are excluded. 

a/ Includes establishments engaged in making "near bear. " 

Volume and Value of Production 

The volume of production of the carbonated beverages which constitutes 
the major portion of the Industry, as reported by the Census Bureau, for the 
years 1931 and 1933, is shown in the following table. These figures do not 
include the small quantity of bulk goods turned out. 

TABLE III 

VOLUME OP PRODUCTION, BOTTLED CARBONATED BEVERAGES 



Volume of Production 

Year (Million cases) 

1931 191.3 

1953 94.2 

Source: Census of Manufactures . Establishments whose annual production is 
less than $5,000 are excluded. 

In respect to the value of production, Table IV shows the Censxis totals 
for the whole country, and for the six leading states during the years 1929, 
1931, and 1933. This table gives 1929 and 1931 data for carbonated beverages 
only, while the 1933 data cover the entire Beverage Industry, including "near 
beer. " This results from an effort to make the data for the three years ap- 
plicable to the Industry as defined by the Code, and at the same time compar- 
able with each other. Since the Code includes "near beer" it would be desir- 
able to include its production for each year if it were not for certain pecul- 
iar characteristics of the Industry which resulted from the legalization of 
beer in April 1933, Prior to that time, brewers of "near beer" had accounted 
for a considerable portion of the Industry's production. However, with beer 

8310 



-4- 

legalized, most of the brewers of "near 'beer" drastically reduced or discon- 
tinued their production of the latter product and started to produce real "beer 
instead. From NRA's standpoint, these producers come under the Brewing Code. 
Hence, that part of the "Beverage" Industry that is comparable with current 
coverage of the Soft Drink Code consists chiefly of carbonated beverage pro- 
ducers. 

This being the case, a comparison of production of carbonated beverages 
only for the years 1929, 1931, and 1933 would be logical. Such, however, is 
impossible in a table showing state breakdowns in 1933, for the data have not 
been gathered. The failure to exclude "near beer" in 1933 does not seriously 
affect the comparability of the data presented, for its production in that 
year amounted to less than 4 per cent of the total value of production of all 
soft drinks* 

It would also be desirable, of course, to present data exclusive of "near 
beer" for employment and payrolls in 1929 and 1931, but such a breakdown is 
not available. Although the production data are, therefore, not strictly com- 
parable with the employment and payroll data presented in this report, it has 
nevertheless seemed advisable to use the data as presented in Table IV since 
comparability from year to year within the production data is more important 
than comparability for a given year between production and labor data. 

TABLE IV 

VALUE OF PRODUCTION III THE BEVEBAGE INDUSTRY, 
BY PRINCIPAL STATES 

(In thousands ) 

State 1929 1931 1933 

U. S. Total 

New York 

Illinois 

Massachusetts 

Pennsylvania 

Texas 

Ohio 

Total for 6 States 

Total for 42 Other States 

Per Cent 6 States are of Total 39.6 40.5 37.1 

Source: Census of Manufactures . 1929 and 1931 figures are for carbonated 
beverages only; 1933 figures are for entire Beverage Industry, in- 
cluding "near beer." Establishments whose annual production is less 
than $5,000 are excluded. 

a/ The 1933 value of product for all soft drinks (including "near beer") 
manufactured both in the Beverage Industry and as secondary products in 
other industries is $117,263,869. The comparable figure for carbonated 
beverages alone is $109,530,323; and for cereal beverages ("near beer"), 
$4,110,842. Thus, "near beer" accounts for less than 4 per cent of the 
total value of soft drinks in 1933. 

8313 



$210,200 


$169,800 


$111,300 


21,298 


18,470 


11,222 


14,216 


11,809 


5,482 


14,126 


11,654 


6,825 


12,622 


9,993 


5,260 


11,634 


9,310 


7,650 


9,304 


7,594 


4,838 


83,200 


68,830 


41,277 


127,000 


100,970 


70,023 



total. The American Bottlers of Carbonated Water estimate the percentages of 
the various classes of employees to the total employees in the Bottled Soft 
Drink Industry as follows: 

TABLE VI 

PER CENT DISTRIBUTION Oj 1 TOTAL EMPLOYEES, 
BY PRINCIPAL KINDS 

Kind Per Cent 

Sale s employee s 

Outside salesmen 6 

Route salesmen 34 

Helpers on trucks _6 

Total 46 

Plant enralo _ "ees 36,5 

Truck drivers 5 



Employees not otherwise classi- 
fied, including executive, 
administrative, office, load 

checkers, etc. 12.5 

Total 100.0 



Thus, it will be seen that on this basis alone the Census factory em- 
ployment data cover little more than one-third the total number of persons 
engaged in the Bottled Soft Drink Industry, as defined by the Code, Making 
allowance in addition for the employees in conoerns doing less than $5,000 
worth of annual business and those engaged in the production of medicinal and 
table waters — both of whom are excluded from the Census data — the above- 
mentioned trade organization estimates total employment in the Industry to 
have been as follows: 

1923 93,000 

1931 84,000 

1933 77,000 

Seasonality of Era-oloyment 

The index of monthly employment and monthly payrolls for manufacturing 
employees in 1954, shown in Table VII, indicates that the industry is of a 
seasonal nature. The five-month period, June through October, includes the 
peak of both employment and payrolls. 



8310 



-7- 



TABLE VII 



SEASONALITY 07 MNUFACTUPJNG- EMPLOYMENT, 1934 
(peb.-Dec. , 1933 = 100) 



January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

Ave rage 



Index of number 


Index 


of total 


of employees 


pay 


rolls 


106.7 




105.1 


104.5 




100.8 


103.4 




105.8 


108.6 




106.6 


116.1 




112.4 


127.9 




126.2 


132.0 




131.3 


125.2 




126.3 


136.0 




129.6 


136.3 




127.7 


102.4 




102.1 


101.5 




99.7 



117.1 



114.5 



Source; Estimated by MIA, Research and Planning Division, from data obtain- 
ed from Bureau of Labor Statistics sample covering about 40 per 
cent of total employment in the Industry as defined by the Census, 



Annual Wages 

Annual \7ages paid manufacturing employees during the period 1929-1933 
declined steadily from $38,000,000 in the former to $14,000,000 in the latter 
year. As shown m Table VIII, the figure for 1934 showed an increase of 
approximately $2,000,000 over that of 1933. 

TABLE VIII 

TOTAL ANNUAL MANUFACTURING WAGES, 
BY PRINCIPAL STATES 
( Thoxisands of dollars) 



State 



1929a/ 1931a/ 1933a/ 1934b/ 



U. S. Total 

Illinois 
New Jersey 
New York 
Ohio 

Pennsylvania 
Texas 

Total for 6 States 

Total for 42 other States 

Per Cent 6 States are of Total 



$38,314 $30,082 $14,196 $16,254 



2,668 


2,386 


702 


2,201 


2,069 


1,139 


5,629 


4,239 


1,325 


2,010 


1,492 


774 


3,413 


2,725 


860 


1,767 


1,317 


921 


17,688 


14,228 


5,721 


20,626 


15,854 


8,475 


46.2 


47.3 


40.3 



8310 



(Continued on following page) 



TABLE VIII (Cont'd) 

Source: As indicated in footnotes. 

a/ Census of Manufactures , "Beverages"; establishments whose 
annual production is less than $5,000 are excluded. 

The figures as reported by the Census are roughly compar- 
able with the Code so far as manufacturing employment is 
concerned, but it must be remembered that they do not 
include the sales and delivery force which is covered by 
the Code. 

b/ Estimated by NBA, Research and Planning Division, from 
data obtained from Bureau of Labor Statistics sample of 
about 40 per cent of total employment in the Industry 
as defined by the Census, 

Note: Except for 1934, data include wage earners engaged in making 
"near beer". 1934 figure covers only those engaged in manu- 
facture of c arbonated beverages. See discussion regarding 
Table IV, above. 

Weekly and Hourly Earnings an d Hour s Per Week 

Table IX shows that the average hourly wage rate for manufacturing 
employees of 74.9 cents in 1934 was 10 cents greater than in 1933. How- 
ever, the average weekly earnings in 1934 were slightly less than in 
1933, and almost $9.00 below the average weekly e arnings of 1931. 

The same table shows average weekly hours in 1934 were about 4 less 
than in 1933. 

TABLE IX 

AVERAGE HOURLY WAGE RATE, AVSBAGE WEEKLY 
EARNINGS, AND AVEEAGE HOURS PER WEEK 



Average Hourly Average Average 
Year Wage Rate Weekly Weekly 

Earnings Hours 

1931 i .$ $29,56 

1933 .649 21.39 42.1 

1934 .749 20.89 38.4 

Source: Bureau of Labor Statistics, Trend of Employment . Hourly wage 
rates, weekly hours, and 1931 figure for w eekly e arnings in- 
clude figures for breweries. 1933 and 1934 weekly wage figures 
are for soft drink establishments alone, computed by NBA, Re- 
search and Planning Division, from unpublished Bureau of Labor 
Statistics data. (Sample covers about 40 per cent of the Industry), 

8310 



-9- 
CHAPTER III 
MATERIALS: RAW AHD SMI-PROCESSED 
Principal Materials Use d 

The chief materials used by the Industry are sugar, flavoring extracts^ 
carbonic gas, "bottles and crowns. The available data "bearing on the volume 
and value of these items are presented in Table X. 

TABLE X 



VOLUME AKD VALUE OP PURCHASES OP 
MATERIAL. BY PRINCIPAL KINDS 



Kind of 
material 



1929 



191L. 



1933 



Volume Value Volume 
(Mil- (Thou- (Mil- 
lions) sands) lions) 



Value Volume Value 
( Thou- (Mil- ( Thou- 
sands) lions) sands) 



Total a/ 

Flavoring- 
extracts b/ 
Sugar b/ 

Crowns b/ 

Car"bonic gas b/ 
Bottles cj 



$103,026 



$76,01+5 



$Hi,s6^ 



iU,U05 2^,567 

20U.3 11,121 1S1.S S.795 
(pounds) (pounds) 

"32.2S 6, 116 
(gross) 

2,766 2,76g 

59U.S 16,690 509.U 13,097 



S72.S 20,069 



Source: Census of Manufactures, "Beverages" except as otherwise 

indicated. Establishments whose annual production is less 
than $5,000 are excluded. 

a/ Includes materials, fuel and purchased electric energy used in mak- 
ing carbonated "beverages, still "beverages, grape juice and "near 
"beer. " 

b/ Data cover only a portion of all reporting firms: the 1929 data 

cover firms producing 76 ~9 eT cent of total value of product of all 
reporting firms; in 193^» 9^»2 per cent. 

c/ Quantities are total "beverage "bottles manufactured, including "beer 
"bottles. Value is total value reported "by "bottle manufacturers in 
the Census report on "G-lass Beverage Containers - Pressure TTare. " 

Value of Product, Labor Cost, and Cost of Materials 

The cost of labor in this Industry in relation to the product value is 
extremely low. Table II shows that total labor cost runs around 13 or 14 
per cent of the total value of the product. Cost of materials is a little 
more than a third of the total value. 



2310 



-10- 
TABLE XI 



VALUE OF PRODUCT, LABOR COST, 
AND COST OP MATERIALS a/ 





Total 
Value of 
Product 
(TIioli sands) 


Total La"bor Cost 


Total Mat? 
Amount 
(Thousands) 


jrials Cost V 


Year 


Amount 
(Thxrasands) 


Per Cent 
of Total 


Per Cent 
of Total 


1929 
1931 
1333 


$270, 3 2h 
212,567 
111,30s 


$3S,3iH 

30.0S2 
lU,196 


lU.2 

lU.2 
12. S 


$103,026 
76,0^5 
Hi,s6H 


3S.1 
35.S 
37.6 


Source 


: Census of 


Manufactures , 


Percentages 


conputed "by NRA, 



a/ 



Research and Planning Division. 

Inclucles figures for "near "beer"* 

Includes MF.terials, containers, fuel, purchased 

electric energy. 



S3i0i'/ 



x