NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
EVIDENCE STUDY
NO. 11
OF
THE ELECTRICAL MANUFACTURING INDUSTRY
Prepared by
J. R. PIKE
December, 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
■Bring upon various legal issues which arose under the 'National Industrial Re-
covery Act.
These studies have value quite aside from the use for which they were originally
intended. Accordingly, they are now made available for confidential \ise within the
Division of Review, and for inclusion in Code Histories.
The full list of the Evidence Studies is as follows:
Automobile Manufacturing Ind. 23.
.Boot and Shoe Mfg. Ind. 24.
Bottled Soft Drink Ind. 25.
Builders' Supplies Ind. 26.
Chemical Mfg. Ind. 27.
Cigar Mfg. Industry 28.
Construction Industry 29.
Cotton Garment Industry 30.
Dress Mfg. Ind. 31.
Electrical Contracting Ind. 32.
Electrical Mfg. Ind. 33.
Fab. Metal Prod. Mfg., etc. 34.
Fishery Industry 35.
Furniture Mfg. Ind. 36.
General Contractors Ind. 37.
Graphic Arts Ind. 33.
Gray Iron Foundry Ind. 39.
Hosiery Ind. 40.
Infant's & Children's Wear Ind. 41.
Iron and Steel Ind. 42.
Leather 43.
Lumber & Timber Frod. Ind.
Mason Contractors Industry
Men's Clothing Industry
Motion Ficture Industry
Motor Bus Mfg. Industry (Dropped)
Needlework Ind. of Puerto Rico
Fainting & Paperhanging & Decorating
Photo Engraving Industry
Plumbing Contracting Industry
Retail Food (See No. 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.
Wholesale & Retail Food Ind. (See No. Si)
Wholesale Fresh Fruit & Veg.
In addition to the studies brought to completion, certain materials have been
assembled for other industries. These MATERIALS are included in the series and^are
also made available for confidential use within the Division of Review and for in-
clusion in Code Histories, as follows:
44. Wool Textile Industry
45. Automotive Parts & Equip,
46. Baking Industry
47. Canning Industry
48. Coat and Suit Ind.
49. Household Goods & Storage, etc. (Dropped)
Ind. 50. Motor Vehicle Retailing Trade Ind.
51. Retail Tire & Battery Trade Ind.
52. Ship & Boat Bldg. & Repairing Ind.
53. Wholesaling or Distributing Trade
L. C. Marshall
Director, Division of Review
y <\^\
CONTENTS Pa^e
Foreword 1
CHAPTER I - THE INDUSTRY 2
Definition of the Industry !
History and Development. 2
Competition with Other Industries 3
Manufacturing Operations 3
Total Number of Establishments 5
Number of Establishments by Principal
States 3
Size of Establishment 4
By Value of Product 4
By Number of ".Tage Earners 5
Capital Investment 6
Net Profit or Loss 6
Value of Production by Principal
Product Groups 6
Estimated Total Sales, by Principal
Types of Product 7
CHAPTER II - LABOR AND MATERIALS 9
To tal Annual Eroploymen t c-
Number of Wage Earners by Principal
States 9
Total Annual Payrolls 10
Annual Wages by Principal States 11
Hourly Wages 11
Weekly Hours 12
Weekly Earnings 12
Employment, Hours, and Earnings
Under the Code 12
Labor Cost 14
Materials Used 14
Cost of Materials. 14
CHAPTER III - PRODUCTION AND DISTRIBUTION 15
Value of Production by Principal States • 15
Distribution of Manufacturers' Sales 15
Wholesale Sales 1-
Exports I7
Advertising Media 12
8881 -i-
CONTENTS -(Concluded)
Page
CHAPTER IV - lEAEE PRACTICES 19
CHAPTER V - TUB INDUS THY - GENERAL INFORMATION 22
Trade Associations 22
Labor Organization 22
Imports 23
Effect of the Code 23
-oOo~
8331
TABLE I
TABLE II
TABLE III -
TABLE IV -
TABLE
V -
TABLE VI -
TABLE VII -
TABLE VIII -
TABLE IX -
TABLE X -
TABLE XI -
TABLE XII -
TABLE Ell -
TABLE XIV -
TABLE XV
TABLE XVI
TABLE XVII
TABLES
Faf.-e
Electrical Energy Produced in Central
Stations, for Selected. Tears, 1387-1933 3
Number of Establishments, by
Principal State s 4
Number of Establishments and Value of
Product, Classified by Value of
Product r>er Establishment, 1929.. 5
Number of Establishments and Number of
Wage Earners, Classified by Number of
Wage Earners per Establishment, 1929 5
Total Value of Product by Principal
Product Croups • 7
Estimated Total Sales, by
Principal Type of Product 8
Estimated Total Domestic Sales, by
Principal Type of Product, 1933 and 1934 8
Estimated Total Annual Number of All
Employees, and of Wage Earners 9
Annual Average Number of Wage
Earners, \>?j Principal States 9
Processing Employees, by
Principal States, 1934 and 1935 10
Estimated Total Annual Payrolls of
All Employees , and of Wage Earners 10
- Total Annual Wages, by Principal States 11
- Average Hourly Wages H
- Average Hours Worked per Week 12
- Average Weekly Earnings • 12
- Factory Employment, Payrolls, Hours
and Wages, 1933-1934 15
- Relation of Labor Cost to Total Value
of Product 14
-iii-
TABLES (Concluded)
TABLE XVIII - Relation of Cost of Materials
to Total Value of Product 14
TABLE XIX - Value of Production, by
Principal States 15
TABLE XX - Distribution of Sales of
Manufacturing Plants, 1929 1G
TABLE XXI - lluraber of "Electrical" Wholesale
Establishments and Value of llet
Sales Reported by them, by
Principal States, 1929 and 1933 17
TABLE XXII - Value of Exports 17
TABLE XXIII - Advertising Expenditures of Radio
Manufacturers for Radio Broadcasting
and Magazine Adver ti sements IS
ELECTRICAL LIAinJEACTURIilG IiTDUSTEY
Fore-word
The data contained in this Evidence Study have "been
obtained chiefly from the Census of Manufactures, the Bureau of
Labor Statistics, and the former Code Authority for the Electrical
Manufacturing Industry.
As explained in Chapter I, the Census classification for
this Industry is not identical with the Code definition, hut the
Census data give a good general idea of the Industry as codified.
The Labor data in Tahle XVI (Chapter II ), which were
specially compiled "by the Bureau of Labor Statistics in cooper-
ation with the ISA, Research and Planning Division, and most of
the tables based on information supplied by the former Code
Authority, pertain to the Industry as defined by the Code.
Because of the small amount of data available in connec-
tion with the section on raw materials, this section has been
included in Chapter II.
8881
-2-
Chapter I
THE INDUSTRY
Definitions of the Industry
The Electrical Manuf acturing Industry is defined in the Code of Fair
Competition for the Industry
"..,„. to mean the manufacture for sale of electrical
apparatus, appliances, material or supplies and such other
electrical or allied products as axe natural affiliates."
In the Census of Manufactures, the "Electrical Machinery. Apparatus,
and Supplies" Industry is only roughly comparable with the Code Industry in
scope. The Census classification does not cover establishments whose
principal products are "electric lighting fixtures, electric signs, or motor
driven tools, mechanical refrigerators, washing machines and other machines
and appliances constructed with built-in motors." On the other hand, the
Census data include establishments covered by codes other than that for the
Electrical Manufacturing Industry, although approximately 05-90 per cent of
the products in the Census classification in 1929 were covered by the Code.
The usual limitation arising from the fact that the Census data do not in-
clude establishments having an annual production of less than $5,000 must
also be borne in mind.
History and Development
The Industry got its start in the latter part of the Nineteenth Century.
Originally used primarily for telegraph and telephone communication, illumine
tion, and electric transportation, electricity now plays a vital part in
practically all of the activities of modern civilization. Each new use for
electricity requires not only additional generating and distributing equip-
ment resulting from the increased demand, but also additional electrical
equipment and energy for use in the factories making the new electrical
product. The growth of the Industry is indicated by the increased output
of electrical energy. According to Table I, this has increased from less
than 200 million kilowatt hours in 1887 to more than 80 billion in 1933, a
four hundred-fold increase.
8881
-3-
TABLE I
Electrical Energy Proceed in Central Stations,
for Selected Years, 1087-1933
(in millions of kilowatt-hours)
Year
Output of
Electrical Energy
1887
175
1897
800
1907
5,900
1917
25.400
1927
74,700
1929
91,400
1933
80^100 a/
Source:
Electrical.
florid.
Jamiary 6, 1934,
a/ Estimated on basis of 10 months'
operations.
Competition with Other Industries
Competition with other industries is almost entirely limited to gas-
operated devices, such as domestic refrigerators, cooking stoves, water heat-
ers, industrial furnaces and ovens, and various small household appliances
such as percolators and heaters.
Manufacturing; Operations
The Industry is so diversified that the manufacturing operations embrace
practically all of the modern processes fcr working materials, and in many
subdivisions of the Industry special manuf acturing processes have been de-
veloped to meet problems that are peculiar to these subdivisions.
Total Number of Establishments
Although the data presented in Table II are not strictly comparable from
year to year (see table footnotes) it may be stated that there has been a
marked decline in the number of establishments from 1929 to 1933 with a slight
increase in 1935.
Numbor of Establishments by Principal States
In 1933 about 60 per cent, and in 1935 over 75 per cent, of the total
establishments were located in the eight states listed. The states having
the largest number of establishments in 1935 were New York, Illinois, and
Ohio in the order named.
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„4-
TAELE II
Number of Establishments, by Principal State
State
1939
1931
1933
1935 a/
U. S. T0hal
1,802
ls5rr3
1,363
1,411
Connecticut
59
58
53
66
Illinois
245
221
181
197
Indiana
57
44
37
34
Massachusetts
106
102
84
89
New Jersey
151
130
99
114
New York
287
268
213
274
Ohio
211
1(98
160
166
Pennsylvania
137
130
118
136
All Others
549
475
408
335
Source: Census
of Manufa
stores,
"Electrical
Machinery,
a/
Apparatus and Supplies," for 1929, 1931, and
1933, and. in addition, "Radio Apparatus and
Phonographs" for 1931 and 1933; Code Authority
for 1935. Data for 1929 are not exactly com-
parable with 1931 and 1933 since phonographs
are included in Census data for the latter
two years: and since the Census and Code cover-
ages are nob identical, the 1935 data supplied
by the Code Authority are not strictly compar-
able with those fo.." the previous years. Census
data do not include establishments having an
annual production of less then $5,000.
As of January, 1935„
Size of Establishment
By Value of Product. - Over 60 per cent of the dollar volume of the In-
dustry in 1929 was turned out by the 81 plants having an annual production
valued at more than $5,000,000. These plants constituted less than 5 per
cent of all establishments. (See Table III.)
8881
TABLE III
Number of Establishments and Value of Product, Classify
by Value of Product per Establishment, 1929
Value of Product
Establishments
Value of Product
per Establishment
Per Cent
Amount
Per Cent
Number
of Total
(Thousands)
of Total
All Establishments
1,802
100.0
$2,300,916
100.0
$5,000 to $19,999
264
14,7
3,384
0.2
20,000 to 49,999
262
14.5
8,552
0.4
50,000 to 99,999
234
13,0
16.846
0.7
100,000 to 249,999
322
17.9
52,304
2.3
250,000 to 449,999
200
11.1
69,657
3.0
500,000 to 999,999
180
10.0
131,760
5,7
1,000,000 to 2,499,999
171
9.5
270,968
11.8
2,500,000 to 4,999,999
88
4.9
335,670
14.6
5,000,000 and over
81
4.5
1,411,776
61.4
Source: Census of Manufactures, 1929, "Electrical Machinery, Apparatus, and
Supplies." Census data do not cover establishments having an
annual production of less than $5,000.
By number of Wage Earners. - On the basis of wage earners, 3 per cent
of the establishments — those employing over 1,000 wage earners — accounted
for 57 per cent of the total number employed in 1929. (See Table IV.)
TABES IV
Number of Establishments and Mumber of Uage Earne^o,
Number of Wage Earners per Establishment, 1929
Classified
f3 t
Number of
Wage Earners
per Establishment
Establishments
Number
Per Cent
of Total
Wage Earners
per Cent
of Total
Number
All Establishments
No Wage Earners
1-5
6-20
21 - 50
51 - 100
101 - 250
251 - 500
501 - 1,000
1,001 - 2,500
2,501 and more
1,802
100.0
328,722
100.0
5
0.3
0
0.0
418
23.2
1,496
0.5
486
27.0
5,710
1.7
267
14.8
8,994
2.8
184
10.2
13,269
4.1
224
12.4
34,789
10.6
109
6.1
38 , 834
11.8
53
2.9
36,928
11.3
37
2.0
54,945
16.5
19
1.1
133,757
40.7
Source: Census of Manufactures. 1929, "Electrical Machinery, Apparatus,
and Supplies." Census data do not include establishments having
an annual production of less than $5,000.
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-6-
Capital Investment
The capital investment of the Industry has been estimated by the
National Electrical Manufacturers Association at from $1,000,000,000 to
$1,250,000,000 in 1929, and from $900,000,000 to $1,150,000,000 in 1933.
The estimate is based on reports from 125 companies which account for about
two-thirds of the Industry' s sales and from 75 zo 80 per cent of the total
number of employees.
Net Profit or Loss
The net profit or loss of the Industry is estimated by the National
Electrical Manufacturers' Association to be as follows:
1929 $159,072,571
1932 - 25,987,048 (loss)
1933 - 13,432,046 (loss)
The estimate is based on reports of 125 companies who reported sales
amounting to $425,963,000 for 1933, and 140,000 employees, in September,
1933.
Value of Production by Principal Product Groups
The value of production of the Industry as reported by the Census of
Manufactures is given by principal product groups in Table V. These figure?
show the decline of business in all sub-divisions of the Industry from 1929
through 1933, The most marked decline took place in the products used for
industrial equipment.
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-7-
TABLE V
Total Value of Product by Principal Product Groups,
(>.n thousands)
Product Group
1929
1931
1933
Total
$2,334,246
$1.-172,393
$015,307
Conduit s
53,270
32,835
18,323
Household Apparatus and
Appliances
845485
55,578
35,723
Insulated Tare and Cable
312,592
120,739
81,225
Lamps, Incandescent Filament
85,320
70,502
49,274
Motors
194,846
95,003
55,703
Radio Apparatus and Supplies
411,637
184,750
109,144
Switch Boards, Circuit
Breakers, and Switches
81,201
44,832
14,499
Transformers and Circuit -
Limiting Reactors
77,825
42,742
14,853
Generators
80,932
34,438
IS, 298
Wiring Devices
a/
sJ
16,465
Control Apparatus
a/
a/
14,853
All Others
949,138
490,923
208,931
Source: Census of Manufacture.
s; see source to Table II,
above, for furthe:
details regarding Census data.
a/ Included in "All Others."
Estimated Total Sales, by Principal Types of Product
In Table VI are shown estimates of sales of all products under the Code
as prepared by the Code Authority from Census data. Although the items are
grouped differently, this table indicates the same general decline shown in
Table V. Domestic sales, as shown in Table VII for the years 1933 and 1934,
increased from $598,000,000 in the former year to $706,000,000 in 1934,
8881
-8-
TABLE VI
Estimated Total Sales "by Principal Type of Product
(in thousands)
Type
1929
1931
1933
Total
$2,401,000
$1,235,000
$650,000
Refrigeration
136,000
128,000
89,000
Radio
412,000
163,000
100,000
Appliances
66,000
43,000
25,000a/
Incandescent Lamps
84,000
68,000
48,C0:/r/
Insulated Wire
and Cable
313,000
120,000
61,000a/
Motors and Generators
265,000
125,000
66,000
Telephone and
Telegraph
166,000
113,000
22,000
Electrical Supply
314,000
177,000
77,000a/
All Other
645,000
298,000
162,000
Source: Code Authority for the Electrical Manufacturing Industry.
a/ It will he seen that this figure for total sales is surlier
than the figure reported by the Code Authority (Table VII) for
domestic sales.
TABLE VII
Estimated Total Domestic Sales, by Principal
Type of Product, 1933 and 1934
(in thousands)
Type
1933
1934
Total
$598,408
$765,538
Refrigeration
75,544
107,058
Radio
87,245
102,025
Appliances
29,529
45,290
Incandescent Lamps
53,916
59,534
Insulated Wire and Cable
63,000
84,341
Motors and Generators
61,624
73,463
Telephone and Telegraph
3,261
5,089
Electrical Supply
81,380
109,089
All Other
142,909
178,849
Source: Code Authority for the Electrical Manufacturing
Industry.
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-9-
Cha .tor II
LABOR AID MATERIALS
Total Annual Emjloymen t
A decline of more thin 50 'jer cent was registered between 1929 and
1933 in both total employment and in number of wage earners, according to
estimates "by the Code Authority. Abo at one-fourth of this loss was re-
covered l^y 1934. Table VIII presents data for the years 1929, 1931, 1933,
and 1934.
TABLE VIII
Estimated Total Annual Number of All Employees,
and of Wage Earners
Year All Employees Wage Earners
1929 410,000 338,000
1931 265,000 215,000
1933 200,000 155,000
1934 250,000 200,000
Source: Code Authority for the Electrical
Manufacturing Industry.
Number of TTage Earners by Principal States
The number of wage earners in the leading states in the years 1929,
1931, and 1933 is shoi.Ti in Table IX. The same concentration in the
Northeastern States is indicated as in Tables II, above, and XIX, below.
In 1933, over 80 per cent of all wage earners were reported in the eight
states listed. Pennsylvania had the highest number, with Ohio, New York
and Illinois following in the order mentioned.
TAELE IX
Annual Average Number of Wage Earners,
by Princ ipal States
State 1929 1931 1933
IT. S. Total
328,722
216,596
163,201
Connecticut
15,225
10,927
9,627
Illinois
57,347
34, 647
19,174
Indiana
20,757
13,907
12,072
_/
Massachusetts
28 , 844
20,055
14,285
New Jersey
42,193
28,455
12,514
a/
New York
43,979
27,844
19,272
Ohio
36,267
22,972
21,243
Pennsylvania
47,373
32,814
24,312
All Others
36,737
24,975
30 , 402
_/
Source :
Census cf Manufactures;
see source
to Table II,
above, for further
details regarding
Census
data.
a/
Data on ''Radios and Phonographs" not
included.
_/
Includes the wage
earners in "Radios
and Phonograwhs" omitted for
8881
Indiana and New Jersey.
Data showing the number of "processing employees, " i. ei, those
engaged in direct labor, who constitute about 70 per cent of all employees
in the Industry, are presented in Table X for leading states in 1934 end
1935. Although the states do not rank in quite the sane order as that
shown for all enployees in the year 1933, the pro rortion accounted for by
the eight leading states is about the saif.c,,
TABLE X
Processing Employees, by Principal States,
1934 and 1935
State
1934
1355 a/
U. S. Total
172,114
175,177
Connecticut
8,506
8,657
Illinois
18,157
18,480
Indiana
8,599
8,752
Massachusetts
13,369
13,607
Hew Jersey
20,451
20,815
Hew York
21,250
21,628
Ohio
26,012
26,475
Pennsylvania
25,258
25,703
All Others
30,512
31,055
Source: Cod.e Authority for the Electrical L'anufacturing Industry
a/ As of January, 1935.
Total Annual Payrolls
Code Authority estimates of total payrolls of all employees and of
wage earners for 1929-1934 are presented in Table XI. In both cases the
drop from 1929 to 1933 was more* than two-thirds of the 1929 total. The
increase reported in 1934 was slightly more marked for wage earners than
for all emoloyees.
TABLE XI
Estimated Total Annual Payrolls of All Employees,
and of Wage Earners
(in thousands)
Year
All Employees
Wage Earners
1929
1931
1933
1934
$620,000
320,000
183,000
255,000
$471,000
242,000
137,000
195,000
Source: Code Author it;
Industry.
for Electrical i.ianuf acturing
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-11-
Anmial Wages by Principal States
Total traces r?Eid are shown for the eight leading states for 1929,
1931, and 1933 in Table XII. The relative positions of the states changed
during the depression: Illinois and Pennsylvania ranked first and second,
respectively, in 1929 and 1931. but by 19Z3 Pennsylvania was first and
Illinois second.
TABLE XII
Total Annual
Wages, by Principal States
[In thousands)
State
1929
1931
1933
U. S. Total
$456,378
$23-3,634
$144,948
Connecticut
17,732
10,963
7,427
Illinois
95,441
41,782
18,805
Indiana
25,783
14,474
11,090
a/
Massachusetts
41,012
22,752
13,263
Ken Jersejr
54, 639
32,735
11,423
a/
New York
63,718
31,155
16,994
Ohio
46,170
24,564
18,555
Pennsylvania
67,734
36,210
21,032
All Others
44, 149
24,999
26,359
5/
Source:
Census c
f 1
lanufactures; see
•source to Table II,
regarding Census data.
above, for
further details
a/
Data on
"Radi
os and Phonographs" not included.
5/
Includes t
le
wages in "Radios and Phonographs"
omitted
fo
r Indiana and New
Jersey.
Hourly Wages
Hourly rates in the Industry were slightly higher in 1934 than in
1929, according to two separate sources — the National Industrial Confer-
ence Board and the Code Authority. Very little change is indicated in
hourly rates during the depression; the large drop in payrolls is apparently
to be accoimted for rather by the reduction in employment and the prevalence
of part-tine work. Hourly wages, as reported by the two sources, are
shown below;
TABLE XIII
Average Hourly Wages (Cents per hour)
As Re-oorted by
Year National Industrial Code
Conference Board Authority
1929 62~75 56.0
1951 63.2 57.0
1933 57.1 51.0
1934 64.4 57.0
Source: National Industrial Conference Board, Service Letter; and Code
Authority for Electrical Manufacturing Industry.
8881
Weekly Hours
As sho\m in Table XIV, average hours worked per week declined nearly
one-third from 1929 to 1934.
TABLE XIV
Average Hours Worked per Week
Average Hours
Year P9r Week
1929 47°5
1931 38.0
1933 33.5
1934 32.4
Source: Code Authority for the Electrical llanufacturing
Industry.
Weekly E^
Although average weekly earnings declined from $26.80 in 1929 to
$18.75 in 1934, the 1934 average was slightly greater than in 1933, as
indicated in the following table.
TABLE
Average Wee'
XV
:ly Earnings
Year
Weekly Earnings
1929
1931
1933
1934
$25.80
21.50
17.25
18.75
Source: Code Authority for the Electrical
Manufacturing Industry.
Employment, Hours, and Earnings Under the Code
In addition to the annual data already given, monthly labor data for _
1933 and 1934 are presented in Table XVI, from which to judge the effect ^oi
the Code in this field. These data, which were compiled by the Bureau of
Labor Statistics in cooperation with the USA, Research and Planning : vision,
pertain to the Industry as defined by the Code. The average employment for
1934 and total man-hours are shown to have increased 26 per cent over 1933,
while payrolls increased 39 oer cent. During 1934 there was a slight upward
change^ in the average hours worked per week, compared with the decrease siiown
by the Code Authority figures in Table XIV, above. Average hourly wages in-
creased from 55.1 to 58.6 cents, which is a somewhat smaller increase than
that reported by the national Industrial Conference Board and the Code Author-
ity in Table XIII, above. The increase in average weekly earnings of 60 cents
was considerably less than that reported by the Code Authority, but the fig-
ures for both 1933 and 1934 were higher than the Code Authority's. To tOu t
extent these changes are directly due to the Code rather than other factors
affecting the business situation in the latter part of 1933, and in 1934, can-
not, of course, be stated.
8881
-13-
TABL2 XVI
Factory Employment, Payrolls, Hours and Wages, 1933-193'
Indexes, 1933* >
00
Average
Hours
Worked
Per Week
~
res
Month b/
Employ-
ment c/
Pay-
rolls c/
Man-
Hours d/
Average
e/Hourly e/
Average
Weekly c/
1933
January
81.7
77.0
71.3
29.7
58.90*
$19.20
February
82.0
78.9
76.8
31.7
55;4'
19.60
March
80.7
75.6
71.6
30.0
56.5
18.72
April
82.0
73.0
79.6
32.8
54.0
18.97
May
86.8
84.8
91.4
55.6
52.. 6
19.48
June
91.9
92.2
102,2
37.6
50.8
19.93
July
96.7
95.9
105.0
36.7
51.4
18.68
August
105.7
107.8
111.2
35.6
54.8
19.27
September
116.5
117.2
114.7
33.3
56.3
19.85
October
126.4
132,1
129.6
34.7
57.3
20.77
November
128.0
134.6
128.6
34.0
56.8
20.66
December
121.6
125.9
117.6
32.7
56.3
19.18
Average
100.0
100.0
100.0
33.7
55.1
19.53
1934
January
113.9
112.0
103.1
32.1
56.8
18.34
February
114.1
115.4
110.6
32.8
56.9
18.60
March
118.6
123.2
117.5
33.5
56.8
19.15
April
123.3
133.5
123.6
33.9
57.7
19.90
May
126.6
142.4
129.5
34.6
58.7
20.69
June
129.2
148.1
133,0
34.8
59.5
20.94
July
128.9
144.2
128.4
33.7
59.7
20.37
August
130.3
147.8
132.2
34.3
59.8
20.68
September
131.8
145.3
129.0
33.1
59.0
2C05
October
131.6
151.3
135.8
34.9
59.2
20.90
November
130.3
148.1
132.1
34.3
59.7
20.60
December
129.2
152.6
133.7
35.0
59.8
21.37
Average
125.7
138.7
126.1
33.9
58.6
20.13
S o ur ce : Unpubl i
shed data
secured by
the Bureau of Labor Statistics
in coopera
tion wi
th the Division of Research and Planning, NRA.
a/ Reporting establi
shments considered to be almo
3t completely covered
by the
Electrical
Manufacturing Code.
b/ Figures
reported
were for the payroll
period nearest the 15th of the
month.
c/ Based upon a repr
esentative
sample covering an
average
of
234 e stab-
lishments and nearly 98,250
employees
in 1933.
The sample
was some-
what larger in 1934.
d/ Computed: Index
of employment times
average hours -.70 rl
:ed
per week
reduced
to 1933=100.
e/ Based upon a representative
sample covering an
average
of
153 estab-
lishments and nearly 61,000 employees in 1933. The sample was some-
what larger in 1934.
8881
Labor Cost
The proportion of "hie;: antra; 1 i re of the total value of product
increased" from 19.6 per cent in V. 29 to 23,6 per cent in 1933. Table XVII
presents the data as derived from the Census of Manufactures.
TABLE XVII
Relation of Labor Cost to Total Value of Product
Total Value Total Annual 'Japes
Year of Product Amount Per Cent of
(thousands) (thousands) Total Value
1929 $2,334,246 $456,379 19.6
1931 1,172,393 239,634 20.4
1933 615,307 144,948 23.6
Source; Census of Manuf a c ture £ ; see source to Table II, above, for details
regarding Census data.
Materials Used
The Electrical Manufacturing Industry uses practically every known mate-
rial in the manufacture of its products. The principal materials used are
copper, iron, steel, paints and other covering materials, porcelain, and
plastics.
Cost of Materials
As shown in Table XVI II the percentage which the cost of materials, in-
cluding fuel and electrical energy, is of the total value of product declined
somewhat from 1929 to 1951, and then increased to 1933.
TABLE XVIII
Relation of Cost of Materials to Total Value of Product
Total Value Cost of Material
Year of Product Amount Per Cent
(thousands) (thousands) of Total
1929 $2,334,246 $971,017 41.6
1931 1,172,393 425,527 36.3
1933 615,307 270,043 43.9
Source; Census of Manufactures; see source to Table II, above, for details re-
garding Census data.
8381
-15-
Chapter III
PRODUCTION AND DISTRIBUTION
Value of Production by Principal States
Table XIX shows that the eight states listed accounted for over 80
per cent of the total value of production in 193?, although, as shown in
table II, above, they accounted for only 60 per cent of the total estab-
lishments in that year. Ohio was the most important state in 1933, although
up until that time it had been outranked by other states.
TABLE XIX
Value of Production, by Principal States
(In thousands)
State 1929 1931 1935
U. S. Total $2,300,917 $1,188,153 $668,257
Connecticut 86,894 46,579 31,453
Illinois 435,022 204,644 78,795
Indiana 133,353 73,725 50,380 a/
Massachusetts 184,787 104,326 52,628
New Jersey 292,785 145,663 61,299 a/
New York 280,139 124,081 74,128
Ohio 264,360 144,191 107,151
Pennsylvania 347,141 184,688 91,095
All Others 276,435 150,256 121,328 b/
Source: Census of Manufactures; see source to Table II, above, for
details regarding Census data.
a/
— ' Does not include -oroduction of "Radios and Phonograohs."
b/ Includes "Radios and Phonographs" omitted for Indiana and
New Jersey.
Distribution of Manufacttirers1 Sales
The distribution of sales in the Industry for the year 1929 as reported
by manufacturing plants to the Bureau of the Census is presented in Table
XX. Sales to wholesale dealers and to industrial consumers constituted 70
per cent of the total.
8881
-16-
TABLE XX
Distribution of Sales of Manufacturing Plants, 1929
Sel1 in Per Cent Number of Plants
Value of Sales Selling
(F.Q.B. factory) Total Exclusively
as indicated
Total
$2,230,361,000 100.0 1,774^
Sales to manufacturers'
ovm wholesale branches 464,148,000 20.8 216 73
Sales to manufacturers'
own retail branches 67,762,000 3.0 49
Sales to dealers:
Uholesalers 700,335,000 31.4 963 370
Retailers 131,033,000 5.9 517 94
Sales to consumers:
Industrial (manufacturers,
power companies, rail-
roads, etc.) 359,957,000 38.6 857 381
Household 7,128,000 0.3 a 2 46
Source: Bureau of the Census, Distribution of Sales of Manufacturing Plants,
1929.
a/ The total number of manufacturing plants engaged primarily in making
electrical machinery end apparatus is 1,802. Of these, 20 do only
contract work, and 6 transfer their entire outout to other plants
of the same company. Inasmuch as some of the other 1,776 plants
sell to more than one type of customer, this figure is less than
the total of the figures shown below it.
Wholesale Sales
The number of "electrical" wholesale establishments and the value of net
sales made by them in each of ten leading states is given in Table XXI.
These figures indicate that more than one-fourth of these establishments were
located in the states shown in 1929 and in 1933, and that approximately the
same -iroportion of total net sales were made in these states. New York is,
of course, by far the most important state, both as to number of establishments
and net sales, in each of the years shown.
In using these data it must be borne in mind that they do not cover all
sales of electrical goods hut only those reported by the Census in the group
labeled "electrical" wholesale establishments, and that not all of these sales
as reported are necessarily confined to electrical goods.
8881
-17-
TABLE XXI
Number of "Electrical" Wholesale Establishments and Value
of Net Sales Reported by them, by Principal States, 1S29 and 1933 SJ
State
Numb p l- of E^tFDli r-nnents
1929 1933
Net Sales (OOP's)
1929
U. S. Total
California
Illinois
Massachusetts
Michigan
Missouri
New York
Ohio
Pennsylvania
Texas
Washington
3,870
392
319
186
169
174
711
264
380
106
98
,232
334
269
176
155
123
565
251
279
52,435,149
$705,411
175,245
47,533
294,329
62,244
109.122
41,579
111,877
40,538
93,763
24,°94
556,953
132,934
211,813
60,312
221 , 681
86,980
57,953
14,855
36,752
7,037
All Others
1,071
565,631
186,405
Source: Census of Wholesale Distribution. 1929. and Censi-.s of American
Business, 1953. Wholpsale Distribution, U. S. Summary and State
reoorts. The 1933 data do not include establishments having annual
sales of less than $1,000.
sJ
"Electrical" wholesale establishments are here defined to include
those the major -oart of whose sales are electrical goods and appli-
ances, electrical equipment and supplies, radios and radio equipment,
and 'electric refrigerators.
Exports
According to Table XXII, exports declined in 1933 to about one-third
their 1929 value, but by 1934 had risen to about one-half the 1929 level.
TABLE XXII
Value of Exports
Year
Amount
1929
1931
1933
1934
$130,062,818
85,080,455
43,580,279
66,524,800
Bureau of Foreign and Domestic Commerce,
Monthly Summary of Foreign Commerce.
RRR1
•18.
Advertising Media
The nature of the advertising media varies with the different products
of the industry. Many domestic appliances, for example, are advertised
extensively "by the use of the radio, national magazines, sign "boards and
newspapers. Other products are advertised only in trade journals or technical
magazines. Table XXIII shows the dollar-volume of radio and magazine adver-
tising used in the r>ast few years "by the radio manufacturers.
TABLE XXIII
Advertising Expenditures of Radio Manufacturers for Radio
Broadcasting and Magazine Advertisements §/
Year Radio Broadcasting Magazine Advertisements
1929 $3,732,000 $5,618,000
1931 910,000 2,754,000
1933 566, uCO 1,296,000
1934 556,000 1,531,000
Source: Prepared from data published in Bureau of Foreign and Domestic Com-
merce, Survey of Current Business, as compiled "by Denney Publishing
Company, Inc.
a/ Radio data are for the National Broadcasting Oomoany and the Colum-
bia Broadcasting System and include only national advertising; mag-
azine data represent the cost of advertising of radio manufacturers
in all classes of national magazines.
8881
-19-
Chapter IV
HtADE PRACTICES
Tlie various unfair trade practices of certain members of the Industry
have been outlined by Mr, A. L. Kress, formerly Code Administration Direc-
tor of the national Electrical Manufacturers' Association. I3elow are
excerpts from a letter to the HRA, dated June 4, 1^55:
"It is believed that the following unfair tra.de practices
have, and in some cases still do avail in the industry. It is
of course impossible to appraise their extent or magnitude.
A - Selling Below Cost:
"This being one of the provisions incorporated in the
basic code, it is reasonable to assume that selling below cost
must have been widely prevalent in the industry prior to the
approval of the code. This industry was probably no different
from other industries. That was the impression when the whole
question of selling below cost became such a debated topic in
any discussions of the elimination of unfair trade "oractices.
B - Terms and Conditions of Sale:
"The following -oractices having to do with terms and con-
ditions of sale all apparently have existed in some degree as
evidenced by the frequently erroressed desire to incorporate
provisions in supplemental codes dealing with them,
(1) Giving of excessive cash discounts.
(2) The granting of excessive preferred terms of payment
which were uneconomic, inconsistent with prevailing
commercial terms, and which were obviously intended
as a method of reducing the price itself.
(3) The granting of excessive trade discounts not war-
ranted by the cost of doing business and the services
rendered in return.
(4) The giving of excessive trade-in allowances on
certain products, not warranted ~oy the scrap or re-
sale value of the product traded in, and which were
obviously intended as a method of price cutting.
(5) The practice of making lump sum bids on certain
products, where the sub-total was less than the
total for the individual items, where such reduc-
tions were not warranted by the quantity purchased,
and again where the intent was to offer an unbalanced
bid or to cut trices.
8881
-20-
(6) The offer or giving of cash allowances or contri-
butions towards the payment of advertising of cus-
tomers, where such allowances or contributions were
not warranted by the value received and which, in
effect, served to improperly reduce prices.
C - Selling Methods:
"The following practices having to do with selling all a
apparently have existed in some degree as evidenced by the fre-
quently expressed desire to incorporate provisions in supple-
mental codes dealing with them -
(1) The splitting of commissions by salesmen, particular-
ly in the case of sales to municipalities.
(2) The acceptance of returned goods under conditions
not warranted by any legal or moral responsibility
incurred by the manufacturer.
(3) The giving of secret rebates.
(4) The policy of individual or multiple prices which
in effect constitute a discrimination against cus-
tomers of the same class through the granting of
special concessions. Such special concessions were
of course usually known only to the parties involved.
(5) The use of consignment methods or ledger balances,
where such methods were used primarily to exclude
competitors from certain areas,
(6) Improperly influencing the actions of employees or
representatives of customers or potential customers
through gifts or otherwise.
(7) The use of advertising which misled or was designed
to mislead potential customers.
(8) The acceptance of blanket or requirement orders at
prices not warranted ~by the size of the individual
shipments made.
(9) Substitution of material in the case of competitive
bids not equal to that required in the specif ications
themselves, which constituted misrepresentation.
(10) The improper rental of equipment on terms which in
effect simply evaded the price at which such equip-
ment should have been sold.
(11) The giving of free service or the placing of equip-
ment on trial or the unwarranted furnishing of samples
all done with the intent of indirectly reducing the
price at which such equipment should have been sold,
8331
-21-
(12) The making of lor-; term contracts which did not pro-
vide for price adjustment in order to reflect changes
in cost.
(13) The guaranteeing against price declines without a
corresponding provision guaranteeing to the manu-
facturer an adjustment in case of price increase,
(14) The use of an unsound warranty provision,
D - Relations with Competitors:
(1) The defamation of competitors and products,
(2) The malting of derogatory statements rith regard
to competitors and their policies.
E - Policy with respect to Products:
(1) The marketing of products which fail to conform
with recognized standards of safety,
(2) The marketing of products which fail to conform
to accepted ratings and performance requirements,
(3) The misbranding of products with intent to deceive
customers or potential customers,
(4) The misrepresentation of products with regard to
the quality, characteristics or performance,
(5) The imitation of competitors' trade marks for the
purpose of misleading customers or potential
customers,
(6) The selling of firsts as seconds, or seconds as
firsts, with the intent either to cut prices or
mislead customers,
"The above lists should, he understood as neither exhaustive
nor as implying that all these practices have existed in all bran-
ches of the industry at the same time,"
3831
Che >ter V
THE INDUSTRY - GENERAL INFORMATION
Trade Associations
The National Electrical Manufacturer s! Association is the dominant
trade association in this Industry. It was forned in 1926 by the merger of
three then existing associations; nan Ly, El ctrical Manufacturers' Council,
formed in 1905; Electric Power Club, formed in 1908; and Associated Manufactur-
ers of Electrical Supplies, forned in 1915. Its membership includ.es over 500
companies, representing practically the entire field of electrical manufacture.
It is estimated by the Association that its members produce 85 per cent of the
production of the entire Industry. The Association was designated in the Code
as the "agency for administering, supervising and promoting the performance of
the provisions of the Code by the members of the Electrical Manufacturing In-
dustry." In addition to its former Code activities, the staff of the Associa-
tion renders the membership many other services.
There are a few smaller trade associations that cover only certain product
groups, suchas Radio Manufacturers' Association, Electric Porcelain Manufactur-
ers1 Association, national Lamp and Shade Manufacturers' Association, and In-
candescent Lamp Manufacturers' Association.
Labor Organization
Mr. Avery Laiserson, of the NRA Labor Advisory Eoard Staff, has :re oared
the following statement on labor organization in the Electrical Manufacturing
Indus try;
"The recognized trade unions claiming jurisdiction in this Industry
are: the electric workers, the machinists, the molders, pattern makers and
metal polishers. The federal unions have experienced a considerable 3 wtl
in numbers under the ISA, particularly in the radio division of the In-
dustry. The latter organizations are local unions attached directly to th
American Federation of Labor, rather than local chapters of a national
craft organization. Federal unions are not restricted to members of one
craft or closely allied crafts in an amalgamation, but cover the entire
plant from top to bottom. As yet, they have not begun to spread over en-
tire industries, but confine themselves to one plant of one company.
Liany people in the labor movement believe that a combination of t
unions into a national organization on a vertical basis is imminent.
"It is exceedingly difficult to quote any exact figures of union
membership. Representation was claimed at the first public hearing on th<
Electrical Code for something less than 10,000 workers in the five crafts
mentioned above — i.e., that was the number in the unions who had jobs
and were -under union agreements. Of course, that was not the only basis
of representation. With the growth of -onion membership under the Act and
the success of organizing several local federal unions, a much great r
number of workers may be said to be directly affiliated with the
Federation of Labor. This do«s not include those who might pr
F. of L. to represent them rather than the company unions nliich have sps :n
u; > in the industry "
8381
Imports
There is some competition from imported electrical goods, especially in
the class of products sold in th li lit i '-price and chain stores.
Several months ago, the Code Authority was considering petitioning the
President to use his powers under the National Industrial Recovery Act to Un-
it the quantities of certain electrical . oods which it was felt were being i -
ported to such an extent that domestic production was suffering. The Code
Authority felt that there was danger that the increasing ratio to domestic
production might "render ineffective or seriously (to) endanger the
maintenance11 of the Code. No detailed data are available on this question.
Effect of the Code
Official expressions of opinion as to the effect of the Code were
tainable. However, the unofficial consensus seems to be that the Co .e had a
stabilizing effect on prices in general and that with a few exceptions,
"destructive" price catting had "been graatly reduced. The tern "destructive
price cutting" in this instance is considered to nean price cutting that de-
moralizes the Industry and results in lowering wages and forcing operation foi
long periods without -profit. The exceptions, in every case nentioned, in
volved products which could "be produced with very little canital investment
and which in nost cases were sold in linited-'orice or chain stores and which
vere, therefore, subject to extreme -pressure fron the "buyers of these organi-
zations.
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