(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"

rb 



¥ p / 



/6'/C 




°? 






NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 



EVIDENCE STUDY 
NO. 16 

OF 



GRAPHIC ARTS INDUSTRY 



Prepared by 

SPENCER H. REED 
AND 
CLARENCE J'. NORTH 



June, 1935 



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



TIIE EVIDENCE STUDY SERIES 

The EVIDEI'ICE STUDIES v.'ere originally planned as a r.eans 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 intended. 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. Automobile Manufacturing Ind. 23. 

2. Boot and Shoe Mfg. Ind. 24. 

3. Bottled Soft Drink Ind. 25. 

4. Builders' Supi^lies Ind. 26, 

5. Chemical Mfg. Ind. 27. 

6. Cigar Mfg. Industry 28. 

7. Construction Industry 29. 

8. Cotton Gar/ient Industry 30. 

9. Dress Mfg. Ind. 31. 

10. Electrical Contracting Ind, 32. 

11. Electrical Mfg. Ind. 33. 

12. Fab. Metal Prod. Mfg., etc. 34. 

13. Fishery Industry 35. 

14. Furniture Mfg. Ind. 3c. 

15. General Contractors Ind, 37, 

16. Graphic Arts Ind. 38. 

17. Gray Iron Foundry Ind. 39. 

18. Hosiery Ind. 40. 

19. Infant's & Children's Y/ea,r Ind. 41. 

20. Iron and Steel Ind. 42. 

21. Leather 43. 

22. Lumber & Timber Prod. Ind. 



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 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 

tTaste Materials Ind. 

Wholesale & Retail Food Ind, (See No. 

Wlaolesale Fresh Fruit & Veg. 31 ) 



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



44. Wool Textile Industry 

45. Automotive parts & Eq.uip. Ind, 

46. Baking Industry 

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



49. 
50. 
51. 

53. 



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



L. C. Marshall 
Director, Division of Review 



CONTENTS 

Page 

CHAPTER I - DESCRIPTION AND SCOPE 1 

Histoi-ical Background - 

Code Origin . 2 

Code Approval 3 

Number and Distribution of Establishments. 3 

Members, by Volume and Value of Production 4 

Capital Investment 5 

Nuxiber of Failures 5 

Volume and Value of Production 6 

Volume of Production 6 

Determination of Value 6 

Annual Sales "^ 

Competition & 

Products Used "by Other Industries 9 

luTports 10 

CHAPTER II - LABOR STATISTICS 11 

Number of Employees 11 

Number of Wage Earners .12 

Wages 14 

Wage Rates 16 

Average Hours Worked 16 

Eiiiployees Under 16 17 

Percentage Cost of Labor is of Value of Products 17 

CHAPTER III - MATERIALS, RAW AND SiMI-PROCESSSD 18 

Principal Materials Used 18 

Value of Each Principal Material Used 18 

Sources of Raw Materials 19 

Percentage Cost of Material is of Value of Products 19 

Value and Sources of MacJainery and Equipment 20 

CHAPTER IV - PRODUCTION AND DISTRIBUTION 22 

Value of Production in Each State 22 

Volume of Production in Each State 22 

Value and Volume of Products Shipped out of Each State ... 23 

Products Sold to Wholesalers 25 

Products Sold to Retailers 25 

Ejrports 25 

Advertising 26 

Shift in Centers of Production 25 

Productive Capacity 26 



8315 



CONTENTS (Cont'd) 

Page 

CHiLPTER V - TRADE PRACTICES 27 

Pre-Code Practices ... 27 

Practices Prevalent ' 27 

Price Cutting 27 

Trade-Marked Products 28 

CHAPTER VI ~ EFFECT OF THE CODS ON INDUSTRY . 29 

Printing Activity and Hours of Work 29 

Wages 29 

Profits 29 

Price Cutting 20 

CHAPTER VII - TRADE ASSOCIATION HISTORY Aim LABOR ORGANIZATIONS 31 

U.T.A, and N.E A 31 

Other Associations '^-'- 

Relationship Between Laoor and Management 31 

Conroetitive and Regional Groups 31 

LalDor Organizations 32 

Present Financial Condition Compared with 1929, 1931, 

1933 33 

CHAPTER VIII - EXPERTS ON THE GRAPHIC ARTS IIHDUSTRIES 37 



- C 



8315 



• 11- 



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 XIII - 

Table XIV - 

Table XV - 

Table XVI - 

Table XVII - 

Table XVIII - 

Table XIX - 

Table XX - 



TilBLES 

Page 

Number and Distribution of Establishments .... 4 

Capital Investment 5 

Failures in the Printing and Publishing 

Industries 5 

Annual Value of Product, by Principal C-roups 

(in thousands) "^ 

Sales of Principal Products, 1933 8 

Annual Sales, by Principal Groups (in thousands). 8 

Number of Employees 11 

Employment, by Principal C-roups 12 

Wage Eai-ners, by Principal G-roups 12 

^age Earners, by Principal States .13 

Annual Yages (in thousands) 14 

Total Annixal Yfages, by Principal States 

(in thousands) ...... ... 15 

Average Hourly Wage Rates in the Printing and 

Publishing Industries ....... .IS 

Average Hours Per Week in the Printing and 

Publishing Industries ............. 16 

Labor Costs IV 

Value of the Principal Materials and Services 

Used, by Princroal Divisions 18 

Raw Materials Supplied Graphic Arts Industries, 

by Principal Sources, 1933 (in per cent). ... 20 

Value and Sources of Printing Machinery and 

Equipment, Used, 1929 21 

Value of Products, by States (in thousands) ... 22 

Exroorts 25 



8315 



-111- 



TAP.LES (Cont'd) 

Page 

Table 1S.I - Changes in Corporation Profits in the Printing 

and Publishing Industry, 1933 to 1934 30 

Table ]CCII - Trade Union Membership 1929 33 

Table iCXIII - ITet Profits and Net Deficits of Corporations 

in the Printing, Publishing and Allied 
Industries 34 

Table ^DCIV - Compiled Receipts, Total Assets, and 1-Tet Surplus 

of Corporations in Printing, Publishing, and 
Allied Industries (in thousands) 34-35 



- o - 



8315 -iv- 



-1« 

GRAPHIC ARTS IlIDUSTRIES 

(Evidence) 

CHAPTIIR I 

DESCEIPTIOIT Aim SCOPE 

Histo:.-ical Backer oimcl 

Prom uian's first crwde attenpts to record his thoughts in comin-unica'ble 
form have evolved the Gra;^hic Arts (publishing, printing and allied indus- 
tries), which today have hecone indispensable to the foi~7e,rd thrust of 
civilization. 

About the middle of the 15th Century a tremendous impetus was given the 
development of the Graphic Arts in the invention of the printing press in 
Germany. Soon thereafter sucli a press was transplanted to Mexico, and print- 
ing with its myriad off-shootr, and allied indxistries took root in the ITew 
World. 

Printing processes were introduced into this co-untry at a very earlj- 
date. It is well known that a number of newspapers were printed in the 
thirteen colonies, as well as pamphlets and iiandbills, while the engraving 
art, thout'^h much less used, was not unlaiown. 

After the Aiaerican Revolution and throu{^hout the 19th Century"- the 
growth of the printing and publishing trades was verjr rapid. Thus, the 
Census of llanufactures shov/s tliat by 1899 there were over 23,000 printing 
establisliraents (including 500 lithographing and 400 engraving establishments) 
in the United Sto-tes, employing some 260,000 wage earners, with value of 
products totaling over $600,000,000. 

By the beginning of the 20th Century there were two major tendencies 
evident in the Graphic Arts Industries. Pirst was the invention of processes 
and equipment tending to accelerate speed and refine the technique of print- 
ing. The development of linot^-pe and monotyoe i:iachines, power presses, zinc 
and aliminiim plates for engr^^ving, etc., attest this fact. 

The second tendency lies in the invention and the increasing use of a 
host of processes based on relief printing, lithography, and engraving. 
These new inventions or adaptations of old processes brought about rapid 
and cheap methods of simulating relief printing, lithography and engraving 
without their perfection or enduring quality. Tin printing, various tjnpes 
of rotogravure work, photolithographj'', multilith, planograph, etc., exemplify 
this tendency. 

Printers and allied artisans with vision and foresig]it are beginning 
to realize as never before that the^'' are merely on the threshold of the 
Golden Age of Printing, with infinite possibilities ahead, both in the way 
of accomplislinents as craftsmen and of financial returns for their work. 
Whatever the industi-y's futm-e may be, it is n-ite evident that there is 
a growing belief among the m.a.jority of its members that their individual 
and collective well— being depends upon a larger degree of cooperation from 
within the Industry itself, 

8315 



-2- 

Inductr" Processes 

OiDvion.sly it is impossilDle vdthin the trief limits of this report to 
do more than touch upon the major operations of the 31 sharply varied 
industries embraced h?/ the Gra ihic Arts Code. Clearly, the technioue in- 
volved in producing- and marketing naps differs considera'bl3'- from that used 
in connection with hank and cor-inercial stationery. This divergence is even 
more marked between periodical publishing and playing-card production, for 
e::ai:iple. It may be said in general^ however, that nearly all graphic arts 
products are produced on direct order or contract either from retailers or 
the ultimate consmier by one of the following three processes, embraced in 
the four groups named, or by a process based on one or more of them, 1/ 

1. Relief Printin,-^ Proces s. - In brief, this process is based upon 
raised type, set either by liand or by one of various methods of machine 
co;nposition, the best known of which is by linotyioe. The composition is then 
printed, occasionally by a hand press but usually by one of a large variety 
of power presses. 

2. Lithographic Printing Process . - In this process, the design is 
made on a stone or metal plate, "hj hand or by photo-reproduction, and then 
transferred to a chemicall?/ prepared zinc plate and from this to paper 
through an intervening rubber-covered cylinder, 

3. Engraving Process . - Tliis process is usually loiown as the intaglic 
printing method, and consists of engraving on a metal plate a design which 
is directly transferred to specially prepared paper. 

Large plants often maintain departments for each of the above-named 
t3'p)es of printing, but lithographing and engraving are usually done in plants 
specializing in each t^'-pe. 

Code O r."'.-:in 

The Graphic Arts Code, as finally approved, was contained in a proposed 
Code submitted late in July, 1933, by the United Typothetae of America, the 
dominant trade association of the Commercial Relief Printing Industry, and 
was designed primarily' to operate in the interest of commercial relief- 
printing establislu^ients. In August, 1933, the National Editorial Association, 
composed essentially of ru.ral v;eekl;''-newspaper publishers (tho-ugh some daily 
publishers are included), presented a Code covering newspaper publishing 
and printing and job printing, together ri-.h a blanket Code covering some 
17 related Industries, 

After protracted Public liearings on the matter in September, October, 
and November, 1933, a basic Code for all b\it a few Graphic Arts Industries 
was evolved. Those Industries not included under the basic Code were strong 
enough to retain their status as separate industries and later were granted 
separate Codes of Fair Competition. These were Photo-Engraving, Electro- 
t-^^ing and Stereotjrping, Book Publishing, Music Publishing, and Daily News- 
papers (not assenters to the Graphic Arts Code), 

1/ An exception should be made in the case of the five service industries 
under the Code, which sell certain "oroducts and services to Graphic Arts 
establishments. Among these are t^'pesetting, lithographic plates, finish- 
ing, binding, and ruling services, 

8315 



Code Approval 

The Gi-apliic Arts Code, approved Pebruary 17, 1S34, to include within 
its scope practically all puhlishin^;, printing, and allied processes, is one 
of the nost detailed and cor.plicated approved hy the national Recovery Ad- 
ministration. It covers 31 separate and often competinj^ Industries, nearly 
all of \7hich orie;ine.lly presented their own Codes of Fair Competition. 

These Industries emhrace four major groups, as follows: (l) Relief 
printing, with 5 constituent indu.stries covering commercial relief print- 
ing, periodicals, hooks, and daily and non-raetropolita,n newspapers; 1./ (2) 
lithographic printing; (o) intaglic printing with tliree suhdivisions, cover- 
ing gravure work, steel and copperplate engraving, and securities and hanl:- 
note engraving; and (4) service groups with 5 constituent industries, in- 
volving tjrpesetting, lithographic plate making, advertising t^qpography, trade 
mounting and finishing, and trade "binding and paper ruling. 

In addition to these 4 groups there are 17 national product groups, 
producing a wide variety of G-ranhic Arts products, such as maps, playing 
cards, greeting cards, lahels, and tickets and coupons. 

Each Industry under the three printing-process groups just named, and 
each Industry?- in the service gro^^p is administered hy a ITational Code 
Authority; while each of the 17 National Product Groups is adninistered hy 
and Administrative Agency. There are, in addition, four Appeal Boards, 
representing each of the Code Authority groups; and a National Graphic Arts 
Coordinating Comr.iittee. 

Nunher and Distrihution of Estahlishraents 

The approximate numher of estahlislrnents in those Graphic Arts Indus- 
tries covered hy the Code, and their geographical distrihution, are shown 
in the following tahle. Althoiogh the data for 1929, 1931, and 1933 are 
incomplete they nevertheless show the marked decline in the numher of es- 
tahlislments which took place dtiring these years. 



1/ Dailjr Newspapers have the option of assenting either to a separate Code 
covering the Daily Newspaper Puhlishing Business or to the Graphic Arts 
Code. Of approximately 1900 Dailies, ahout 1200 have assented to the 
separate Code and ahout 500 to the Graphic Arts Code. The other 200 
not having assented to either Code, are not under a.ny Code. 



8315 



-4- 

Table I 

Iviijnber and DistriMtiou of Estaolislir.ients 



State 



lien York 

Illinois 

California 

Pennsylvania 

Ohio 

Massachusetts 

Other States 



1939 a/ 



4,155 
2, oSb 
1,769 
1,726 
1,451 
1,033 
12,699 



United States Total 
Total 2c 



1931 a/ 



319 



4,029 
2,095 
1,510 
1,630 
1,285 
1,002 
11,115 



22,766 



1955 a/ 



2,984 
1,551 
1,241 
1,316 
1,021 
852 
8,469 



17,5-14 



1954 b/ 



5,446 
3,626 
2,829 
3,399 
3^140 
1,711 
20,028 



40,178 



Graphic Arts estahlislinents are distrihuted throughout every State in 
the Union, the lar,p;est nuraoer (5,445) beinf,- in Nev; Yorl:, and the smallest 
(95) in Delaware, 1/ About 72 per cent of the estahlisliments cotmted are, 
ho\7ever, concentrated in 12 states, 2/ and approztimately 50 per cent in the 
6 states listed in Table I, 

Members, by Volume and Value of Production 

Fnile it is impossible to classify menbers of the Graphic Arts Indus- 
tries as a \7hole '^o-j value or volune of member production without dissecting 
the corporate str^^cture of the over 40,000 Graphic Arts Establisliments, it 
ua.Y be stated on the basis of conversations with Code Authorit;'" secretaries, 
deputies, ajid Industry" members, that the Graphic Arts Industries are composed 
in general of separate and individual units. Tlius, T;hile there are a few 
dominating firms in certain groups - notably Commercial Relief Printing, 
Periodical, llev/spaper, securities and Bank Note Engraving, and Playing Card 
groiTps - whose firms have branches and sales offices in several States - the 
Industry is singularly free from concentration of corporate control. 



a/ Census of Manufactiu-es . "Printing and Piiblishing", "Lithographing", 
and "Engraving," Includes firms whose products are valti.ed at less tlian 
$5,000. Code applications, which deal comprehensively with only the 
year 1933, recorded 42,309 establislimcnts for 1933, 

b/ Proposed 1935 Code Axithority Budgets. Inclxides all establishments sub- 
ject to assessment by the Code Authorities of the Graphic Arts Industries, 

1/ Proposed 1935 Code Authority'- Budgets. Includes all establishments sub- 
ject to assessment by the Code Authorities of the Graphic Arts Industries, 

2/ liichigan, Missouri, Teicao, ITew Jersey, Minnesota and Indiana, and the 
six states named in Table I, 



8315 



-5- 

Capital Investment 

The approximate capital invostnent of the Iiiduntr;- for the years 1929, 
1931, rad 1933, follov/s. Fhile fi^.ixez for 1934 are not available, it is 
iDelievcd that capital inventnient in this ^ear was not nuch greater tlaan in 
1933, despite some inprovenent in the Industrj'-'s financial position. These 
figures are lar£;el3'- deterrninod on the theoretical norket value of the in- 
vestnent in plaiat aiid equipment, l/ 

Tahle II 

Capital Investment 



Year 



Anoimt 



1929 
1931 
1953 



$ 579,039,974 

859,988,343 

1,436,116,945 



Source: Code Applications of the Industry'"; incomplete for 1929 and 1931. 

The Commercial Belief Printing Industry, Dail^r and iTon-^netropolitan 
Newspaper Publishing and Printing Industry, Book Hanufactioring 
Industry, Lithographic Printing Industr;^ and Trade Binding a:id 
Paper Eroj-ing Industry made no report for 1929 and 1931; the Trade 
Lithographic Plate-IMcing Indiistry, none for 1929; and the Trade 
Typesetting Industry, none for 1931. 



Huml;er of Failures 



The only available record of fail-Lires a;nong the Graphic Arts Industries 
is co:rfined to the "Printing and Puhlishing Industries." The data are given 
in Ta'ole III "below: 

Tahls III 
Failures in the printing ojid publishing Industries 



Year 



Ilumher of 
Fail^u'es 



Liabilities Involved 
( thoxi-sa:nds) 



1950 
1931 
1932 
1933 
1934 



174 

212 
260 
394 
313 
152 a/ 



$ 2,571 
7,173 
9,471 
13,035 
8,123 
3,899 



S our c e : Dun and Bradstreet Monthly Heview . 

a/ The Code Authority fignare for numoer of failures in the yeajr 1934 is 143. 



1/ 



Verbal statement of Code Authority e::ecutives for the Commercial RelieJ 
Printing Industry, Secui'ities sxicL Bozik i:otc Engraving and Printing 
Industry, etc. 



8315 



-6- 

Accordiii-r to the fig'jjres given in Table I, there was a decline of soae 
5,000 estahlisliraents reported "b-j the Censiis from the years 1931 to 1933, ^-rhile 
the failures reported for these two years total ea-ound 700. It may he noted 
that fail-ujres are reported for comprjiies, while Census data are for individual 
estahlisliiaents; that estahlislmients may ho closed without goiiv; into ■bsjiil:- 
ruptcy; rjid that estahlishtients included in the 1931 Censxis night he e:cclr.ded 
in 1933 because of the decline in the vsJ-ue of their annual business to less 
than $5,000, the snallest-sized establisluaent covered by the Census, 

Volume aiad Valiie of Production 

Tlie principal products of the Graphic Arts Industries fall into four 
mains classes; 

1. Relief Printirje Frodi\cts, - Job printing, bool:s, periodicals, ne\7S- 
papers, music, tickets, coxipons, labels, etc. 

2. Lithographic Printing Products. - BcUik and commercial statione.ry, 
aps, posters, photo-lithographed products, etc. 



n 



5. Engraving Products. - Social stationery, securities and ba;il; notes, 
greeting cards, etc. 

4. Service Products. - Tjnpesetting, lithographic plates, advertisir^g 
mats, moimting and finishing services, binding ajid paper ruJLing services, etc. 

Volujne of Production . - The nuEoer and cliaracter of Graphic Arts produ.cts 
is so T.-ide and varied that, e-:cept for a few of the National Product groups, 
it is difficult to set up a quoaititative j-ardstick that v/ill convey an;- 
adequ-D-te neaiiing. To sa;-' that so majiy hiuidred nillion pieces of matter were 
printed, lithographed or engi'a.ved ditring a given year, does not conve-" the 
sajae statistical meaning as in the case of coaiiodities sold in definite 
qu.aiititative measiu-e, such as "by the poimd, ton, or other xij^iit. 

newspapers aiid periodicals supply circulation figures which are roughly 
analogous to their volune of production, b^^t this voliime does not bear a 
direct relation to the value of their produ.ct, which in the last ajialysis 
depends on the amoujit of advertising reveni\e received. Few figures on pro- 
duction voluLie p.ve collected ^o^r the individual industries uuder the Graphic 
Arts Code, with exce-otions such as the playirig Card Indu.stry, which reported 
the sale of 40,318,000 decks in 1932, as against 45,320,000 decks in 1929; 
and the Drjr Transfer Hsnufactu-rers, which reported sales of 1,231,340,000 
units in 1952, as against sales of 1,154,923,000 uiiits in 1929. l/ 

Detemination of Value . - Host Graphic Arts products are valued according 
to a fi-:ed number of umts. For erample, all commercial relief printing 
products are sold in lots of a dozen, hundred, or thousand. The same applies 
to lithographed and engraved products. 

Tlae products of the Newspaper and Periodical Publishing Industries are 
largely vsiued according to their advertising revenue, while they are sold 
either in single -oiiits to individ-'oal subscribers or in lots of 12, 50, etc., 



l/ Code Applications of the industry. 
8315 



-7- 

for newsstand circulation. Books are printed in hundred and thousand lots. 

The National Product groups, i, e. , tank and commercial stationery, 
decalcomanias, greeting cards, labels, posters, tickets, coupons, dry- 
transfers, maps and kindred products are sold in varying lots. 

Certain exceptions to the foregoing stated units may "be noted in the 
Service Industries, particularly in the case of t;;/pesetting, T^^hich is sold 
by the poujid, but even in this group, lithographic plates, mats (advertis- 
ing t^npography) , mounting and finishing services are sold in units. 

While a breakdown, bj'' value, of even the major products of the Graphic 
Arts Industries is not available, the composite valuation of each of the 
four principal groups under the Code follows: 

Table lY 

Annual Value of Product, by Principal Groups 
(in thousands) 



Grouo 



1929 



1931 



1933 



Printing and 
Publishing 

Lithogra-phing 

Engraving 

Total 



$2,760,196 

121,014 

49.901 

2,931,111 



$2,212,267 

87,433 

27.425 

2,327,125 



$1,524,990 

68,188 

16.223 

1,609,401 



Source: Census of Manufactures for the industries listed. Establishments 
with products valued at less than $5,000 are not included, value 
includes "value added by manufacturing," Data on Service groiips 
not available. 

Annual Sales 

A breakdown showing sales of the Graphic Arts Industries for the five 
leading products for 1933, the latest year for which such data are available, 
follows: 



8315 



Tatle V 
Sales of Principal Products, 1933 



Product 



Amount 
(thousands) 



Commercial Relief Printing 

Periodical Publishing and Printing 

Book Manufacturing 

Steel and Copperplate Engraving and Printing 

Trade Typesetting 



$300,000 

300,000 

60,000 

25,000 

17,715 



Source: Code Applications of the Industry. 

The annual sales of the Graphic Arts Industries, according to its 
four major groups, follow: 

Tahle VI 

Annual Sales, hy Principal Groups 
(in thousands) 



1929 



1931 



1933 



Relief Printing Products a/ 
Lithographing 
Engraving li/ 
Service Groups c/ 



$507,000 

121,014 

58,224 

27.95J 



^53,177 
87,433 
37,699 
24.067 



Total 



$714,168 $1,002,276 



$2,102,385 
67,000 
37,114 
41.903 

$2,248,402 



Source: Code Applications of the Industry. Figures for 1934 are not 
yet availahle. Figures from this source should he regarded 
as estimates only, 

a/ The Commercial Relief Printing Industry and Book Manirfacturing Indus- 
try did not sucmit figures for 1929 and 1931, while the Non-Metro- 
politan and Daily Newspaper Publishing Industries submitted no figures 
for 1929, 

b/ The Secu.rities and Bank Note Engraving Industry did not submit figures 
for 1929 and 1931, These figures are somevrhat out of line with the 
Census figures, for the reason tha.t the Code application include 
Grav^jjre Printing, which showed sales of about $11,000,000 in 1929, 
nearly $9,000,000 in 1931, and about $8,000,000 in 1933. 



8315 



-9- 

c/ Trade Tjroe setting and Trade Binding and Paper Ruling did not submit 
fi-mres for 192S and 1931, and Trade Lithographic Plate Making sut- 
mitted no fi£:ures for 191'9. 

Conipetition 

Kindred Industries which direct?.;^ comcete with one or more other 
Industries tuider the Gra-oiiic :'•■. L» Coc.e are: 

(a) Those Under OcV-;r Codes. 

Ic I'aij.y A"'=T./spaTjer Publishing Business. 

2» Pho-co-Sn^rs-ving, 

3, Slectvo^A-oiug and Stereotyping. 

4, Boo';: laihl isbing, 
5,. l/:u:^o Pn'hlishing, 

6„ id-^f-rtismg Specialties, 
7» Loocc-Leax Blank Books. 

("b) Those Under no Code. 

1, Duplicating and Mailing. 
2» City Directory 

3. Metal Decorators, 

4. Pu.hlic Printing Agencies (Federal, State, 
Co-ojity, and municipal printing estahlishjnents) , 

In addition to the foregoing, there are tifjo classes of indirect 
competition which should "be mentioned. 

1. Private Plants. - Private printing plants are those 
used "dj every manner of firm (candy, st'.el, drug, hotel, retail store, 
etc) to print labels, menus, forms, catalogs and the like strictly for 
their ovm. consumption. These compete v'ith the commercial printer in the 
sense that he might get their orders if they had not their own presses, 

2. Paper Industries, - There are at least 4 so-called 
"paper industries" which use orinting orocesses in connection with their 
products. These Industries, which have codes of their own, regard their 
printing operations as an integral part of their products and hence not 
subject to the Graphic Arts Code, Certain firms in these Industries - 
insofar as their printing operations are concerned - have, through ru.lings 
in their individual cases, been brought under the Graphic Arts Code, 

Products Used by Other Industries 

With the exception of the Service Industries, which sell the bulk 
of their products to other Indiistries -onder the Graphic Arts Code, and of 
the Music and Book Printing Industries, most of vrhose products are used 
by the Music and Book Publishing Industries, very few pioiucti of Graphic 
Arts establisliments are eraioloyed by other Indxistries in production, manu- 
facture, or for resale. 



8315 



-10- 

Of course much printed, lithographed and engraved matter is "bought 
ty many other industries and used in the advertising of their own vrares. 
Among such printed products may be listed business letterheads (printed or 
engraved), circulars, handbills, posters, labels, and dry transfers. To 
list all the industries ¥/hich use these products would be impossible here 
and serve no good purpose as their widespread dispersion is apparent. 

Imports 

Foreign imports of Graphic Arts products have no significant effect 
on the Graphic Arts Industry as a whole. For the year 1933, imports of 
printed matter of various kinds reached a total of only a little over 
$3,000,000 1/ as compared with domestic sales of nearly $2,250,000. 2/ 



1/ Siireau of Foreign and Domestic Commerce, Foreign Commerce and 
Navigation of the United States, 1933. 



2/ Code Applications of the Industry, 1933. 



8315 



-11- 

CHAPTES II 
LABOR STATISTICS 

ITum'ber of Era^iloyees 

The following table shows the mim'ber of employees in the Graphic 
Arts Industries, according to the three sources available. 

Table VII 

ITomber of Enij^jloyees 

Source 1929 19S1 1933 1934 

Census of Manufactures a/ 310,370 277,671 233,389 

Code Replications b/ 99,087 78,884 432,908 

Bureau of Labor Statistics c/ 281,100 253,800 213,800 228,100 

a/ From reports for "Printing and publishing," "Lithographing," and 

"Engraving" Industries. These figures cover wage earners only, i.e., 
mechanical enployees as against office workers, executives, etc., 
and do not include firms with products valued at less than $5,000, 
No figures are available for 1934. 

b/ No report was made for 1929 and 1931 by the Commercial Relief Print- 
ing Industry, Non-Metropolitan and Daily Newspaper Publishing Indus- 
tries, Book Manufacturing Industry, Securities and Bank Note Engrav- 
ing Industry, Trade Typesetting Industry and Trade Binding and paper 
Ruling Industry. No report was made for 1929 by the Trade Litho- 
graphic plate Making Industry. These figures cover ail employees. 
No figures are available for 1934. 

cj Index as published in Trend of Employment , multiplied by Census base 
and adjusted by KRA to 1933 Census totals. These figures cover only 
the printing and publishing industries. Also, they cover wage earn- 
ers only, and do not include office workers, executives, etc. 

A brealcdown of the incomplete data obtained from the Industry' s Code 
applications, covering all employees (mechanical employees, clerical force, 
etc.) in the three process groups and in the service groups, is given in 
Table VIII. 



8315 



-1?- 

TABLE VIII 
EimDloyment , "by principal G-roups 



Group 



1929 



Relief printing a/ 
Lithographing 
Engraving t/ 
Service Industries cj 
Total 



1931 



1933 



54,000 


53,000 


390,643 


18,S79 


16,217 


14, COO 


13,708 


1,485 


11,775 


12,400 


8,182 


16,450 


99,087 


78,884 


432,868 



Source: 
a/ 



c/ 



Code Applications. Figures for 1934 not availa-tle. 
Only the periodical publishing Industry reported figures for 
1929 and 1931. 

The Secarities and Bank Hote Engraving Industry did not re- 
port for 1929 and 1931, and the Steel and Copperplate Engrav- 
ing Industry did not report for 1931. 

The Trade Typesetting Industry did not report for 1929 and 
1931; the Trade Lithographic Plate-Making Industry did not 
report figures for 1929, and the Trade Binding and Paper Rul- 
ing Industry did not report figures for 1931. 



Ilumher of Wage Earners 

A hreal:do'.7n of the Census figures shows the following nuniher of 
wage earners in the three process groups. 

TABLE IX 
Wage Earners, hy Principal C-roups 



Group 




1929 


1931 


1933 




Relief printing 




281., •'.■'9 


254,461 


213,777 




Lithographing 




18,9fd 


16,217 


14,579 




Engraving 




10,272 


6,995 


5,033 




Total 




310 , 370 


277,673 


233,389 




Source: Census 


of 


Manufactures, 


"Printing and Publi 


.shing," "Litho- 





graphing," and "Engraving." 

a/ Firms with products valued at less tlian $5,000 not included. 

Figures for 1934 not availahle. 

TaMe X shows the numlDer of wage earners in each state in the 
three ptocess groups. 



8315 



-13- 



in 

(U 

•p 

ci3 

4^ 
IT: 

r-l 

P-l 



u 



5 






a 

(1) 



CO E^O 


Lf^ H to H r-: LP. in cS^ O LT^ 


a.' 
J- 


H 
'.T 










r^5 llOrH J- H LPv 


o 


cr 


O 






^.H 


r-i 


^^ 




LP^ 


c 




w 










* 




1 'i"^ 














J- i-l J- CT^^ t-^^ r— -=!■ -^, 


J- 


ir 


CT^ 
r- 

LP 


J5 




r<^ o ,i^ 

r^ ,c: Pi 


a> Lf^ o-^ J- r—vD o o^ Q H 
r— ^- o r-- r— r~-^ ro ^ h 








O' -t^ '- 


^ H i-H rH 


CM 
r-J 


rJ 


r-l 


= CD 

Td 
-d d 




ElO 










ctf O 




•H ^ 

-p '■d <•'. 


c\j to t^ I^ O^ M O CU C\J t^ 


.■t 


r^ 








VD r—CTA^ Lr^VD C^^VD CM LT 


u.~-. 


CM 




LO o^^ o^ ro O to CM V£) Cd 


^ 


i~o 


fkD 4^ 






cd' r^ c-T r^ iH H u:i r-->s£) ix^ 

J- C\J OJ 1-" i-H rH 




cm' 


H 
CvJ 


'^ O 
•H C 




•^ ,? 










P^O 




FM 










t3 O 

fH O 






to to o cvj^ c\J^■--5,a^cj^ 
^ jit K^ ir^ oj r— J- c61 Lr\^o 


U3 


cr 


Li;-^ 
cn 


O LP 




S^-" 


ro 


LC~^ 


H 


vo" 


^ :^ 




F=q 










+= 














^ in 




>X) h-vo r— o t" f^^o K"-,^- 


t~r> 


cm 


LP 


C CD 
•H rH 




1 '] 
O ^ 

H -cj p, 


0^\ Ci-^ O^. K'l o>^ O OJ ^ ^ 


to 


ro 


r-l 




6-! ^- I^ J- ^- f«A LO^ 1^1 H 


liTi 


<D 


OJ 






«k •» M V* 

^ rH rH CM 




CVI 


w" 
H 


"cn 4^ 

•H CC 




1-1 i-^ tu) 










rH 




£>0 

•H CD H 










^ Td 




H O t^ I^ J- I^ CM O^ to H 


CM 


G^ 


H 


^^ 




vT) O r^ CO CJ ro t--^0 ^ r^ 


O 


LP 


UD 


r-1 

Ti Cti 

tn 

ha += 




K^ 60 i-i 1^ CO in^ r— en H 

cT cT K^ 0-" ro CM CO to t— UJ 
LPs K^ CM H pH r-l 


cn 
o 

'jO 

r-l 


LP 


LP 
CM 












c o 




PM 










•H pi 




I 


UD r^- LO ro o^ rH ai ^ ^ ^f- 


o 


CM 


CM 


n o 




cr\ r^ o'> r-->vO ^J3 ^- f/^vo lc 
I-- H H ^- r~- cvi ^- VO r- 


O 


r-l 
CM 


o: 


•H Ih 
?H Pi 






r^i-TH" 


Gi 


r-i 


H 


•H 


• 




en tH bo to oj vD u^ CM c\:. — 


r^ 


V-O 


O^ 


W 


"^ 


h' 


1 n 


OJ O >^ r— LCMM O !H -^' ' 


H 


^ 


1 — 


CD 


CiU 


CD 

rC 


^. P, 


a; l^^r^J- o o-.Li'^r'^r^ 


1 — 


Cv 




d 


cv hP t:: 


VCi OJ H CVi rM 


u ■. 

H 


r'- 


> CO 
H 


4^ 

o 

cd 


• H 


c\i 
Pi 


O" f,n 










'+-) 


Vl 


b 


^ 5 










g 


O 


cn 


■H ^ ^ 

4J nd cn 


O LC^CM H to Lf>^ CO I^t( 
O^ *j --^ 'vO o^ r^ CM r^ r— r' 


3 a> 




1 cn 


cd 


CO 


CD 
4^ 

O 

Pi 
<D 


w.' 


K 


> r-i 


»^ 


■H CO H 


^r-^ O Lf^ CM r-H ^ O V.O 0~M^ 

CM c'j ^ r-l irMv-^, o o^ t~- r~ 


CO 


o 

r— 


J rH 
^ rH 


P 


u 




ir r^ CM CV H iH H 


rH 


bC 


CM 


CO 


CD 


Pi 


w 








d 

cn 


Q) 


U 




cti -P 


cn 




H 


a 


M 


4J 




•H += 


<0 


U 


r^ 


(D 


ni 


O 






ri -p 


Q 


4^ 


o 


$3 


'^ 




•H c; 


^ ti 


o 









t; -H H ,9 ^ fu fn fn ( 


■p 


-p a 


J IH 






+:> 


o H t/3 


o + 


3 


• • 




L*_ 


O O !>o O O M ^ 0) i 


=: cvj 


c 


: • 


o 




-p 


>H !C! en Cu tf-l -H O 1-3 


ij -P o 


r-l + 


■3 CO 


o 


^ 


t/5 


•H d o " -H ^ en • 

r- r-; 3 -H tn r-! O CQ is r 
5) r-l O ^ Cu Cti -H -H CO 


H O rH 
d E4 


■^^ 


3 • 


pi 
o 


Co 


1 


^', HH fii o ::: o U4 ;4 :<^; h 


-1 






LO 







8315 



-14- 

Wa^es 

The annual wages paid "by tlie three process e;roups under the Graphic 

Arts Code, are saoi^n telow: 

TABLE XI 

iUirual Wafjes 
( In thousands) 



Grouo 



1929 



1931 



1933 



Printing and publishing 

Lithographing 

Engraving 

Total 



$ 506,290 
32,022 
14,313 



$ 437,424 

25,723 

9,503 



$ 292,461 
18,123 

5,265 



$ 553,125 $ 472,650 $ 315,849 



Source: Cens\is of Mahui'actures for the industries listed. Firms 
with products valued at less than $5,000 not included. 



TaDle XII shows the annual wages paid to wage earners in the 10 
principal states in the three process groxxps. 



8315 



-15- 









I. 




u^ r^ iTN o 0^. ^~^^J■ cd r- 


"..O 


O"" 


m 












cS 


of; 


v-O^^ O-iH U^^-•~-,c■.^^ 


Q 


tr 


'vD 










^H 


p; 


H .ri- Ln f-. H cA ir: 


^ 


CO 


CM 










h!) 


•H 


«« 


*• 




•» 










P! 




C\J 


J- 




LTn 












ca- 


ca- 




^y^• 












tlO 








= 








1 


c 


t^r—r-oji^-HwHCJO 


CM 


r-i 


t^ 


• 








o 


•H 


^- rH O t^T-r-^ LO rH CO rH 


LO 


1 — 


CM 


UD 




K- 




j^ 


j:^ 


irM~^ 1-^ t~- O^ rH J- 1^^ iH 


J- 


VD 


rH 


c: 




r-^ 




p 


P' 


■k •« « •» r> 


•> 




•« 


■H 




cr 




■H 


CO 


U3 OJ H H :-\ 


L£^ 


CM* 


00 


fc 




1-1 




f1 


^ 

(^■-1 


■(B- 


rH 




rH 
















<-fi- 


-£«■ 


IS) > 










Uij 








W CD 






til) 




fi 


rH r- CO O MD ^ LO |-- J- CO 


o 


rH 


rH 


= rd 






p; 




•H 


cr>Otoor<^^-c\jLrM\JO 


rH 


LP 


^O 


p! 






•H 




^ 


LI^VT) OA L^^ K-v O ^D MD VD r-^, 


r^ 


rH 


Jt 


Td ,H 






-p 


T:i 


U! 


•kM««#>*«ba>Mn« 


«» 




*• 


a o 






fl 


a 


■H 


^J- LOOJUDUDCO a^ 0"^>vD 


.rl- 


CO 


CM 


C3 C! 






•H 


ra 


i-H 


UD r^ C\j CM rH rH 


rH 


r- 


0-. 


•H 






fH 




r^ 




CM 




CM 


c 






l-M 




Vy 


<fy 








« -P 










PH 




ca- 


-w- 


W) o 


w 




1 










p! p: 


CD 




t> 




a^^-l rHCVlLfM r^rH 


VD 


r—j 


r^ 


•rH 


-P 






a. 


W) 


o-^ LTi o i~— r~-,rr u^-^^ r^^n 


O 


0"~ 


O 


^ O 


ro 






u 


C 


r— O o rH IT- oj cd|o 


O 


J- 


LTi 


PhO 


-p 






hU 


tH 


•k M •» •• 


«• 




•* 


to O 


C/i 










r^ rH rH rH 


I'O 


rH 


O^ 


t>J3 l-O. 


iH 










-O 


•fj* 




-M- 


o -ce- 










tlO 








^ __ 


Pi 






I 


s 








H^ PJ 


•H 






g 


• H 


oj r<~\vi5 (A o ^'- to Lo CM r- 


V.O 


H 


K> 


•H rj 


O 






.--< 


-d 


o-^,rJ- CO ^.o CO un o^ r— t--^^ 


i'^ — 


^ 


CM 


Hi .-c; 


ri 






-p 


Pi 


bO O O .:y- rH ^ r— LCMv^ H 


C7^ 


r~- 


r-- 


= -p 


•H ^-v 






■H 


Co 


*i n M •« «v •* 


n 




»« 




^1 W 






1-q 


fn 


"lO r-'^ Cu ^--^ H rH 


rH 


K^ 


ir\ 


= m 


n rM '"'^ 








t.n 




CM 




OJ 


r. CO 


H PI 


H 








-co- 








tlO (D 


X >^ a 


|V- 










-«* 




-o 


S H 


XI en 


o~ 






M 








•H 


H . ^ 


i-H 


tiO 




iS 








•d p> 






S 




•H 








CO Cu 


W to ^ 
<ij d) -P 




•H 




^ 


U"> r-^ J- ^ t^ rH rH r--v^ CM 


o 


J- 


^ 


•H 




P 


'd 


01 


LO.CM CT>C!Air\rH ijA rH LTArH 


H 


H 


r^ 


rH nd 


&H f>J3 




p; 


fl 


•H 


r-r^cocoj- r-\ ^ r^cnc\j 


^ 


o 


J- 


^ (D 


cti C 




•rH 


cd 


rH 




r. 




«• 


P! pi 


f3 t-l 




fn 




rO 


a^>X) yo o f-\ ro^ J- j- cr 


K^ 


^*' 


1 — 


(i, rH 






^ 




^ 


Cr\LP\r^r^CMCMrHrHrH 


CM 


rH 


ro 


ce 


r-l 








Ph 




K>, 


<-H 


Jd- 


rd > 


cd 










-60- 


<B- 




^a- 


a 


fi 














CO w 


S 
















p> 


^ 
















(i3 o 

a d 








I 




CMirM--cootoJ-co,-d- H 


r— 


MD 


r^-^ 


•H Td 


rH 






> 




CM in rH O r^-d- CM CM J- ^ 


rH 


O'^ 


H 


P o 


ri 






tti 


tiD 


U3 r— VD >J3 CO r'A H ^ O^ rH 


.1- 


f-^ 


CO 


p; !h 


■P 






in 


rt 


ff^ ff« A 


n 


w^ 


•^ 


•rH P, 


O 






t.O 


•H 


VO H rH 


f^ 


rH 


^ 


ri 


EH 






s 






H 




rH 


•H. 








r; 




O- 


•^9- 


■co- 










C.J 


r^^ o r— r— r— oj ^'- h 

O rH VJ> ^- t-r^ O O -3- rH --3, 


IX^ 


r- 


CM 


to 


^- 




CT 




I 


•H 


C\' 


0■^ 


r\ 


0) 


co 




C\J 




o 


.i:: 


LTM^H o~^L^^^-c^^lr^Lr^ cS 


H 


CO 


O 


;h 






Q-^ 




r-r 


Q 


» •* «^ n •* •« 


•» 


P 


M 


pi 




i-J 




-p 


cC 


r^.^- CM r^ rH H 


h- 


^-J- 


CM 


.P 


■H 








• H 


^ 


rH 


C\J 




r^ 


o 


Ch 








i-:i 


tiD 








CTi 














<y> 


-efl- 


-£«■ 


Ch 


Cm 










!<0 








•-', 


O 






w 




C 








s 








a 




•H 


>^ VO VJD CM ITN^ CO J- rH CT 


rH 


cn 


O 


.s 


to 






•H 




^ 


rH CO CO CT^ rH V£> K^ LTiVT) CT 


rH 


r- 


CTi 




u 






P 


■xi 


W 


cn CM CxO Lr^ rH rH CO r — U3 o 


ro 


o- 


CM 




o 






c 


ui 


■H 


•«*MM»M«»M«** 


»k 




•k 


«H 


pi 






■rH 


d 


rH 


CM rH j:t U^ CO VD CO UD LT^ r-l 


rH. 


J-* 


VX) 


o 


M 






U 




rQ 


Hr— r^CMCJrHrHrHr-'. 


J- 


^ 


O 




CO 






(U 




p! 


r^ 


r^ 


rH 


L£~\ 


to 


(D 










fil 






<B- 


pj 












O M 


O e<> 




CO 


OJ 










Cd -P 


rH 


r-\ 


PI 


t^ 










•H P> 




U K. 


Q) 


nj 










rt 0) Oj >s 


f! 


0) p> 


o 


!^ 










Ci [0 -H (U 


■H W 


.i:: CD o 












^tn> ^CfJ-HM 


(U 


P O Eh 








<D 




^H-HH ^^^^J;H^^cd 


H -P 


O P 


• • 






p 




oo>3 oo£iD?ia)fl 


Tu ffi 


Cw • 


o 






Ct 




>hCW„C0«H-HOI-3TO 


-P P> 


rH P> CO 


o 






P 




•H n O W -H ^ OQ -H 


o w 


rH CO • 


^ 






M 




OJ rH (!;• ^ CS Cu -H -H flj p; 


&^ 


< \=> 


pi 

o 












^ n Ph P ;z: O a M: 12; IH 








CO 





H 
(U 
■P 

k3 

u 
a 
9-> 

to 

rd 

<D 
H-> 
fn 
O 
P^ 
CD 
fn 

•P 
O 



■^ 



8315 



-16- 
Wa^re Rates 

The most reliable statistics on average hourly wage rates are those 
published by the Bureau of Labor Statistics, and these cover only the 
printing and publishing industries, as follows: 

TABLE XIII 

Average Hourly Wage Eates in the 
Printing and publishin,':; Industries a/ 



Average Hourly Rate 
Year (In cents) 

1929 79.7 

1931 79.6 

1935 72.9 

1934 78.8 

Source: National Industrial Conference Board, 

Service Letter , for 1929 and 1931 data; 
Bureau of Labor Statistics, Trend of 
Employment , for 1933 and 1934 data. 

a/ Weighted coniposites of ''Book and Job" 

and "newspaper and Periodicals" groups. 



Average Hours Worked 

Average weekly hours worked per employee are available only for the 
Printing and publishing Industries. These data are given in the follow- 
ing table. 

TABLE XIV 

Average "ours Per Week in the 
Printing and Publishing Industries a/ 



Average Hours Worked 
Year Per week 

1929 45.9 

1931 42.5 

1933 58.0 

1934 55.6 

Source: national Industrial Conference Board, 

Service Letter, for 1929 and 1951 data; 
Bureau of Labor St 'ti sties, Trend of 
Employment, for 1955 and 1934 data. 
_a/ Wei?:hted composites of "Book and Job" 

and "I-Tewspaper and periodicals" groups. 



8515 



-17- 

There are no statistics availsMe covering the average hours Trorked 
per week "by employees in the various states, nor average weeks worked per 
year per enn^loyes. 

Ei'aployees Under 16 

The vast majority of employees under 16 years of age in the Graphic 
Arts Industries serve as sellers or carriers of newspapers, periodicals 
and advertising newspapers. A special report of the Research and Planning 
Division, Hay, 1934, on newspaper sellers CJid carriers shows that the 
major nev/spapers 1/ of the countrj'' in March, 193S, employed 127,419 
newstoys under 16, while 209,390 were similarly employed "by periodicals, 
and 1,805 Toy advertising newspapers. 

Percentage Cost of Later is of Va3.ue of products 

The percentage which the cost of laljor is to the value of products 
in the Graphic Arts Industries, shown in the following tatle, is derived 
ty dividing the total annual '.vages paid into the value of the products. 

TABLE XV 

Later Costs 



Year 



Value of Product 
( thoiisands) 



Annual TlTages 
(thousands) 



Per Cent Lator Cost 
is of Value of Product 



1929 


$ 2,929,111 


1931 


2,327,125 


1933 


1,609,401 



$ 553,125 
472,650 
215,849 



18.9 
20.3 
19.6 



Source: 



Census of Manufactures , for "Printing and Publishing," "Litho- 
graphing," and "Engraving." Firms with value of products less 
than $5,000 not included. 



It should be realized that the above percentages do not cover the 
entire labor cost as the wage data refer only to wage earners. If figures 
were added covering the salaries of office workers, executives, etc., 
labor costs would be somewhat higher. Statistics covering these latter, 
however, are lacking. 



1/ iiost of these newspapers are "onder the separate Code for the Daily 
Newspaper Publishing Business. 



8315 



-18- 

CHAPTER III 

MATERIALS, HAW AIH) SEMI-PHOCESSED 

Principal Materirls Uaed 

The 31 Industries under the Graphic Arts Code used hundreds of ma- 
terials in the raamifacture of their proc'xicts. As seen in TaTsle XVI, the 
cost of paper represents the mrgor errpenc.itxirc for raw materials. Such 
specialized commodities as fin-^ chemicals, inl: eradicators and glue are 
important in certain of the National Product Groups, but, considering the 
Graphic Arts Industries e.s a i.Thole the ra:? materials listed in the tahle 
cover their principal reouirements. 

Value of Each Princior.l Ilatorial Used 



It is seen that the total value of the principal materials used in 
the Graphic Arts Indiistries declined consistently in the years follonin;:; 
1929: 25 per cent fi-om I929 to 1931, and UG per cent from I929 to 1933. 
Nearly every material listed followed this general trend; ho'^ever, it 
may he noted that the value of domestic nev.'Sprint used increased hetrreen 
1929 sjid 1931, while that of "trade lithogrpphic plate-malcing" and 
"trade mounting and finishing" increased het'Teen 1931 and 1933* 

TABLE XVI 

Value of the Principal Materials and Services 
Used, hy Principal Divisions 



Materials and 








Services 


1929 


1931 


1933 


Materials a/ 








Neu sprint and Similar Pa-oer 








Domestic 


$SO,70S,g9S 


$g6,iU3,2SU 


$^7,S3S,50^ 


Imported 


1^5,000,000 


110,000,000 


60,000,000 


Book Pa"oer 


lf^S,27l,655 


120,282,799 


S3,2Ui|,3^6 


Printers' Ink 


U2,7^^9,992 


32, IBS. 39s 


2^^,387, 7S1 


Printers' Sup-olies 


s, 579,00s 


5.795,071 


5,327,^99 


Engraving Materials 


3,129,HS3 


2,319,223 


l,6gU,6io 



SuTd- total 

Services h/ 

Trede Ti-rpesetting 
Trade Lithographic 

Plate Making 
Advertising Typography 
Tra.de Mounting and Finishing 
Trade Binding and Paper Kuling 

Suh- total 
Total 



$^2,14.37,035 
$31,Ugl,55S 



$356,722,775 $230,920,7^0 



22,680,000 
5,250,000 

sJ 

$pi9,Hii,f^'^8 



c/ 

3,000,000 

16,217,000 

U, 850,000 

c/ 



$17,71^,962 

3,500,000 
12,769,000 

5,8Uo,ooo 
U,999,U29 



$2^4,067,000 $Uli,823,39l 



$507,Si-!-£,593 $3f;o,795,775 $275,S0U,131 



2315 



-19- 

a/ Census of Manufactures for the industries listed. Includes only 
products sold conclusively to tlie Printing and Publishing, litho- 
graphing, and Engraving groups, lie allowance has "been made for 
exports of these products becc.use such a small proportion of the 
total is e.xported. Excludes finr.s v/hose products are valued at 
less than $5,000. A part of these total sums - and presuraably a 
large part of such items as nev/sprint paper - -was spent "by the 
1,200 daily newspapers under the coc.e for the Daily Newspaper 
Pahlishing Business. 

h/ Code Applications of the Industry. 

cj ilot available. 

Sources of Hau Llr.terials 

Table XVII shoi^s the localities uhich supply the major part of the 
more important raw materials used in the Graphic Arts Industries, and the 
percentage of each material originating in such locality. There 'Tas no 
great shift in the relative proportions of raw naterirls contributed, "o-j 
the various localitiei between the years 1S23, 1931 and 1933? therefore, 
the fifjures for only the year 1933 s-^s included. 

The data presented in this table show that, of the nine states listed, 
Illinois, ITew York, Ohio and Pennsylvania are the most important domestic 
sources of supply. Virtually none of the listed materials are imported, 
with the exception of paper, about 5U per cent of which comes from Canada 
s.nd. about 3 per cent from Ne\'7foundland, 

Percentage Cost of Material is of Value of Products 

Prom the reports of the Census of Ilanufactures l/ it is calculated 
that for the years I929, I931 and 1933, "ti'^e cost of materials 2/ used by 
the C-raphic Arts Industries was, respectively, 2U.3 per cent, 23.5 P^i* cent 
and 21. S "oer cent of the total value of the Industries' products. 



1/ Reports for "Printing and Publishing", "Lithographing", and 
"Engraving." Excludes firms the valiie of whose products was 
less than $5,000. 

_2/ Includes fuel and purchased electric energy, which amounted, 
in 1929, to 3.2 per cent of the total cost of materials, fuel, 
and. purchased electric energy. 



.31^ 



-SO- 
TABLE X7II 

Raw Materials Supplied Graphic Arts Industries, "by 
Principal Sources, 1933* 
(In per cent) 



Region 




Paper 


Printer 
Inl: 


s' 


Printers' 
Supplies 




Engravers' 
Materials 


Illihois 




a/ 


22. S 




22.6 




30. S 


Maine 




3.S 


a/ 




^. 




a/ 


Massachusetts 




3.5 


d 




^, 




a/ 


Michigan 




h.i 


a/ 




a/ 




a/ 


Hen Jersey- 




a/ 


7.0 




a/ 




a/ 


Ken York 




5.5 


32.1 




IS. 5 




27.9 


Ohio 




3.U 


e,h 




3.7 




^ 


Pennsylvania 




3.1 


9.5 




6.9 




a/ 


Wisconsin 




3.9 


a/ 




a/ 




a/ 


Canada 




5^.0 


a/ 




^ 




^-^ 


Kenfoixndlejid 




3.0 


a/ 




a/ 




a/ 


All Other 




15.3 
100.0 


25.2 




Us. 3 
100.0 




U1.3 


Total 


100.0 


100.0 


Source: Census 


of 


Manufacture 


is. "Paoer 


and Pulp", "Ink, 


printing", 


"Print( 


3rs 


' Su-oplies", 


"Engraver 


st 


Ilateriols"; and Bureau of 


Foreign a: 


nd Domestic 


Commerce, 


Po; 


L-ei.9;n Commerce 


and 


Navigation 


of the 


United States. 


1933. 











a/ Not among the chief sources of supply 

In view of many qualifying fa.ctors nhich need not "be entered into 
here, these percentages should he regarded as only rough approximrtions. 
It may he concluded, nevertheless, that the ratio of "cost of material" to 
"value of products" in the Graphic Arts Industries as a whole has remained 
fairly constant since I929. 

Value and Sources of Machinery'- and Equipmrent 

Table XVIII presents the kind, value, and origin of the printing 
machinery and equipment u.sed hy the Graphic Arts Industries in I929 - the 
last year in which any considerable purchases were made. 

A "breakdown by states of the I929 values is not available. It may be 
noted, however, that the States of Illinois sxid. New York, follov/ed closely 
by Connecticut, New Jersey and Ohio, supplied the widest variety of ma- 
chinery and equipment. In I929 the total value of these products for the 
United States was approximately $70,000,000. 

Por the year 1933 the Census of Manufactures reported the value of 
such machinery and equipment at slightly j.iore than $15,000,000, of which 
nearly SO per cent (about $8,600,000) originated in the States of New York, 
Illinois and Ohio. 

2315 



-21- 
TABLB XVIII 

Value and Sources of Printing Machinery and Equipment, 
Used, 1929 a/ 



Machinery- 



States 



Total 

Value 

(thousands) 



Typesetting Machines 

Bookbinding Machinery 

Printing Presses 
Cylinder 

Eo tary 

Wet) 

Other Types 



miscellaneous Printing 
iTi.'^.chinery 



California^ Illinois, Iowa, 

New York, Ohio $19,000 

Connecticut, New York, Pennsyl- 
vania, Rhode Island 4,000 



Connecticut, Illinois, Massa- 
chusetts, Michigan, New 
Hampshire 11,000 

Illinois, Kentucky, Massa- 
chusetts, Michigan, Ohio 9,000 

Connecticut, New Jersey, New York 7,000 

Illinois, Indiana, Maryland, New 

Jersey, Ohio 9,000 



Illinois, New Jersey, New York, 

Ohio, Pennsylvania 10,000 



Source: Census of Manufactures, "Machinery." 

a/ Does not make allowance for ejcports, "but hy far the largest part of 
the printing produced in the United States is sold domestically. 



8315 



-22- 

CliAPTER IV 

PRODUCTION Al.n) DISTRIBUTION 

The great aajorit^'- oi the products under the Graphic Arts Code are 
sold direct to the retailer or the consuner, with tut few wholesale inter- 
mediaries. 

Value of Production in Each State 

The approximate value of products produced in each State hy those Graphic 
Arts Industries under the Code is t'^iven in the following tahle. 

TABLE XIX. 

Value of Products, hy States a/ 
( In thousands) 



State 



1929 



19S1 



193S 



Ne'-' York 

Illinois 

Pennsylvania 

Ohio 

California 

Mas sachus e 1 1 s 

Michigan 

Missouri 

New Jersey 

Indiana 

Texas 

Minnesota 

All Other States 

Total 



$779 , 244 

378,504 

279 , 691 

218,502 

152,697 

149 , 293 

104,069 

88,399 

62,546 

53,887 

53,400 

53,136 

555.745 

$2,929,111 



$623,068 

280,865 

220,719 

173,587 

128,593 

117,396 

73,244 

67,034 

54,720 

41 , 324 

41 , 284 

47,356 

452.885 

$2,327,125 



$434,891 

185,156 

147,958 

124 , 051 

89 , 337 

85,418 

47,166 

46,675 

40,771 

27,899 

28,197 

3"^ , 295 

316.587 

$1,609,401 



Source: 



a/ 



Census of Manufactures , "Printing and Publishing," 
graphing" and "Engraving. " 



"Litho- 



Estahlishments with value of products less than $5,000 not included. 
It should he noted that these figures include the value of products 
of those newspaper establishments oinder the separate Code for the Daily 
Newspaper Publishing business. Eigures for 1934 are not yet avail- 
able. 



Volume of Production in Each State 

The impossibility of establishing any yardstick by which volujne can be 
gauged for the 31 Industries under the Graphic Arts Code has already been 
explained. 



8315. 



-23- 

Value and Volume of Products Shipped Out of Each State 

No precise figures are available showing the value and volume of prod- 
ucts snipped out of each state. The only v/ay such information could te pro- 
cured would "be to ascertain from each of the 40,000 Graphic Arts estatlish- 
ments its sales ou.tside the state in v/hicl; it is located. 

However, in spite of the absence of this itemized information, it is 
patent that the Graphic Arts Industries ss a whole are predominantly inter- 
state. Figures covering the number of establishments in each state, already 
presented, show that nearly 75 per cent of all Graphic Arts establishments 
are concentrated in 12 states, and 50 per cent in 6 states, v;hereas their 
products are sold - for the moot part direct - to nearly 150,000 retail es- 
tabli slime nts throughout the country. vrnen to those establishments are added 
the many thousands of consmiers who buy Graphic Arts products, such as job 
printing, newspapers, periodicals, labels, tickets and coupons, etc., direct 
from the producers by mail and otherwise, the preponderantly interstate na- 
ture of the Graphic Arts Industries becomes still more apparent. 

The following tabulation presents specific evidence as to the interstate 
nature of the principal industries under the Graphic Arts Code: 



Commercial Relief 
Printing Industry. 



Statements by Messrs. J. J. Deviny and Elmer Koch l/ 
indicate that this Industry is probably 50 per cent 
interstate by number of firms, and over 80 per cent 
by volume of business. The following reasons are given 
for this view: (l) Nearly all the large printing 
centers, i.e., New York, Philadelphia, Baltimore, 
Chicago, St. Louis, Kansas City, etc., are located 
close to state borders, so that even small firms with 
relatively fev; customers do business across state lines; 
(2) all large and raan-r medium size concerns do a con- 
siderable mail-order business of 3.n interstate charac- 
ter; (3) individual firms of large si'ze and combinations 
of small f irns are emoloying salesmen with increasing 
frequency to -^et business from cities and small towns 
located in other states. Thus, salesmen for Chicago 
and Kansas City firr.is operate as far West as the Pacific 
Coast. 



Non^Metropolitan 
Newspapers.- 



All newspapers, except those of the most limited circu- 
lation, have subscribers in states other than those in 
which thev are loublished. 



Periodicals. - 



The same situation is evident here as in the case of 
non-Iietropolitan newspa^oers. It should be noted, too, 
that New York City, the predominant periodical publish- 
ing center is located close to the state border, and, 
hence, periodicals witn even a very limited circulation 
which are published in New York tend to circulate be3'-ond 
state lines. _^_ 



iJ^iIt. Devin-r is Executive Vice President and iir. Koch Executive Secretary 
of the United T^/pothetae of Anerica, the National Code Autnority of the 
Coromercial Relief Printing Industry. 

8315 



■ ■i-..-)sr,c, 



Sook Manufacturing.- The situation is not so clear here, as the geographical 

distrilfution of TdooI: printing plants follov/s closely 
along the lines of their customer, the Bool: Pu'clishers. 
However, it shoulc'. oe realized that the hooks printed 
"by Book Maniifacturers, largely concentrated in i'levj York 
City, Boston, ejid Philadelphia, are subsequently sold 
across state lines. 



Lithographic 
Printing. - 



Engr8.ving.- 



Most lithographing products have a T7ide interstate dis- 
trihution. A good example is furnished h;' the Banl^ and 
Commercial Stationery Industry, which naJies sales to 
nearly 25,000 han2:s scattered throughout the United State; 

There is a v;ide interstate sale of the products of en- 
graving manuf actu.rers . l/ Social stationery, engraved 
cards and the like are carried hy many thousand stationer: 
hook and department stores located in every state. The 
production of engraved securities is largely an inter- 
state "business, according to a statement of the secretary 
i^f this Industry's Code Authority. 2/ 

Service Industries.- The approriiraately 3OO estahlishments in this group sell 

type, lithographic plates, mounting and finishing services 
and the like to nearly Uo,000 firms under the Graphic Arts 
Code, and also to ncny thousand plants in other indus- 
tries which condv.ct printing operations for their own 
use. With such c. ride distrihution of customers, the 
weight of evidence is strong that most of these service 
Industries have interstate sa.les. 

Most of the products of the ilational Product groups are also widely dis- 
tributed in interstate commerce. Lahels, Dry Transfers and Textile and Hosiery 
packing have many thousand reta.il outlets in the garment, hosiery and kindred 
trades. The sale of tickets and coupons is estimated "by the secretary of the 
Ticket and Coupon Manufacturers' Council to he over 90 per cent interstate, ^/ 
It should be pointed out, too, that playing cards produced by 7 firns, and 
Church envelope systems manufactured ''oi' approximately 25 concerns, are, in the 



!_/ The following statement was na.de a.t a public Hearing on the Steel and 
Copperplate Engraving Industry, held on April 3, 193^. "by Mr. Theodore 
Isert, Secretary of the Engraved Stationery Manufacturers Association, 
which later became the EationaJ Code Authority of the Industry, I.Ir. 
Isert said: "I think almost the entire United States is a competitive 
area in our line of business. There are very few concerns which do a 
strictly local business. They almost all do interstate business, or 
practically all. Many of then do business in half the states in the 
Union..." See Transcript of Hearing, pp. 2S and 29. 

2/ Mr. A. M. Ferry. Mr. Perry is also Secretary of the Association of Bank 
Note Companies, and is well qus-lified to speak on matters rela.ting to the 
Industry. 

^/ Mr. Charles Conradis. Mr, Conradis has had many years' e::perience 
in trade association work in the Ticket and Coupon Industr}'-, and is 
Executive Secretary of the Ticket and Coupon Manufacturers' Council, 
the National Code Authority of the Ticket and Couison Industry. 



S3I5 



-2^ 

case of the former, distrHjuted to nrny thousand retail estalilislmcntE 
throughout the country and in the case of the latter are sole, to a large 
proportion of the 250,000 Churches and religious institutions located in 
every State. 

Products Sold to Uliolesalers 

As the Graphic Arts Industries as a nhole are essentially a custom 
manufacturing group, with the prod-ucts nade to special order and comparative- 
ly feu of them manufactured in advance of sale, fe^ graphic-arts products 
are sold through wholesalers. The overwhelming bulk are made up on direct 
order "by the customer, or through retail, establishments for subseouent re- 
sale to the ultimate consumer. 

There are, of course, exceptions' to this rule. Certain periodicals 
and newspapers, for example, sell to wholesalers, who, in tujrn, distribute 
to newstands and retail stores. There are wholesale dealers in maps, 
greeting cards, playing cards, ojid thrift systems produced by the ticket 
and coupon industry. Even these inc'ustries are by no means confined to 
this method of distribution. The total value and volume of products sold 
to wholesalers and by them to retsdlers is exceedingly small in comparison 
with the value and volume sold either to retailers or to customers direct. 

Products Sold to Hetailers 

Wliile there are relatively few wholesalers handling the products of the 
Industries under the Graphic Arts Code, it is estimated from Census of Distri- 
bution figures that over 175,000 retail establishments handled Graphic Arts 
prodr.cts in I929 and over 130,000 in 1933- Hews dealers, stationery stores, 
stores selling general merchandise, circulating libraries and the like make 
up the general total. Among these establisiiraents in 1933 were nearly 60,000 
drag stores, over 20,000 cigar stores, lU,000 jewelry stores, over 12,000 
dry goods stores, and the same rjunber of variety (5 and 10 cent stores.) 

Exports 

In compr^rison with the value of domestic prodixction, the value of ex- 
ports of Graphic Arts products is negligible. They are conf*ined to maps 
and charts, playing cards, lithographically printed matter (except post 
cards) and other printed matter. The following table shows these e:Qports 
for 1929, 1931, 1933, and I93U, b^r value. Volume data are not available. 

TA3LE XX 
E::x)orts 



Product 1929 1931 5:933 193^ 

Haps and charts $230,015 $30,S97 $33,S66 $^1,626 

Lithographically 

'orinted matter . , 

'(except post cards) 2,851,0^5 2,ll+3,93S 1,3S6,900 1,^72,733 

Playing cards 705,Sgl 3S7,6l7 225, 3SH 266,27^ 

Other -orinted matter 9,0^,6S1 9,62^,765 6,335,237 1,015,33^ 

Total $12,gSl,622 $12,237,217 $7,96l,3S7 $S, 802,565 



Source: Bureau of Foreign and Bo-iestic Commerce, Foreign Commerce and 
Navigation of the United States . 

S315 



Advertising 

The Graphic Arts Industries produce more advertising for other indus- 
tries and accept more advertising from other industries than they use them- 
selves. This does not mean that Graphic Arts grouos do not advertise, and 
advertise extensively. It simply means that in comparifion with the amounts 
spent for advertising "by manufacturers of food and tobacco products, drugs, 
and other types of consumer goods, the total advertising "bill for the Graphic 
Arts Industry is small. 

The tjrpe of advertising prohahly most frequently used is direct hy mail. 
This is particularly characteristic of the Commercial Relief Printing group, 
in which the facilities for printing circulars, handbills, leaflets, etc., 
axe close at hand. Periodicals likewise use this form of appeal to a con- 
siderable degree. Advertising is used in periodicals, especially in trade- 
association publications, ilewspapers proclaim their "virtues" in their oxni 
advertising colxunns and occasionally in those of other newspapers. Radio 
advertising is little used. 

Shift in Centers of Production 

On the basis of Census of Manufactures data, it can be stated that 
there ha.ve been no marked shifts in production centers between 1929 and 1935 
for any of the Industries under the Code. Piguren showing the nijjnber of 
establishments by states do not indicrte any marked change in the comoara- 
tive ratio of firms in one state to those in another between 1929 and 1935, 
nor has there been any noteworthy shift in the value of their products. 

Productive Capacity 

Considering the Industries "onder the Code as a whole, from the data 
available, it would be impossible to make even a worthwhile guess as to the 
productive capacity of the Industry. So far as productive capacity utilized 
is concerned, authentic data are likewise not available. 



8315 



-27- 

CHAPTER V 

TRADE PRACTICES 

Pre-Code Practices 

Destru.ctive orice cutting was the do;i)insnt uiifair trade i:ractice 
prior to the approval of the Code, and this practice was participated in 
by practicall3- all the 31 Industries under the; Code, 

To a much less deg-rbe the following other unfair trade practices 
also existed: (l) inaccurate advertising, (2) misrepresentation of con>- 
petitor, (3) secret rebates, (4) appropriation of design, (5) discrimi- 
natory discoujits, (6) unfair selling terms, and (?) improper bids. 

Practices Prevalent 

After the Code was approved it became apparent that certain of the 
trade practices which had been sanctioned in the Code under the provi- 
sions relating to accounting ai^d cost finding not only carried '.^ithin 
themselves the seeds of abuse, but were being applied in certain cases 
in a detrimental way. Thu.s, a price determination schedule submitted 
by the ComiTiercial Relief Printing Industry and later approved, was found 
on examination to contain the opportunity for ineq\iities between one sec- 
tion ejid another and between large and siiall concerns. Discrimination 
has also been claimed against Code Agencies iii the matter of approving 
Cost Systems as required by the Code, 

A.ccording to Compliance data, the following unfair trade practices 
still persist to a greater or less degree: 

1, S'^lling below cost (over 55 per cent of all complaints 
of violation of the trade practice provisions of the 
Code are directed against this practice). 

2, Inaccurate advertising. 

3, Piling improper bids 

4, G-ranting discriminatory discounts. 

5» Appropriation of design. 

It cannot be said that any of the above practices, except perhaps 
the first, ere prevalent as measured by the n^'jiifcer of complaints made. 
They s.re listed as indicating that such practices still exist. 

Price Cutting 

In the distribution of ba.nk arid commercial stationery products - 
a predominantly interstate business - the price structure of the Industry 
was almost completely de-moralized by the price-cutting tactics 
of a single large member who started a, price war in a 

8515 



-28n 

cert,iin locality. All firms in that locality had to meet his lower prices 
in order to retain "business. Soon customers of firms in other localities 
demanded the same lower prices, and firms in such localities had to accede 
or lose their customers. In this v/ay wliat started as a purely local prac~ 
tice spread to all regions of the country.^/ 

The exarrrple cited ahove indicates hov the price of an individiial 
member of industry tends to affect the prices of all merahers. Another 
instance of a similar character may "be cited. There are a number of 
large printing firms in Chicago and other mid-west centers who by virtue 
of power presses and high-speed equipment can offer speedy service at 
low prices. These firms, through salesmen, actively bid for and secure 
business from points as far off as the Pacific Coast, Local printers in 
order to meet this competition have to lower their own prices. It may be 
added that this is not a case of destructive price cutting, as the firms 
in question pay Code wages and are not selling below cost, 2/ 

Trade-Marked Products 

Wliile a large proportion of the products of the Industry are copy- 
righted, including in this category newspapers, periodicale of all tj'pes, 
maps, auid the like, only a small proportion are trade-marked. Under this 
heading are playing cards, certain types of decalcomanias, etc. 



1/ This exaiiple is based on a verbal statement by C. A. Parker, made when 
he was Secretary of the Code Administrative Agency of the Bank and 
Commercial Stationery Industry, 

2/ This exaiTTole v/as cited in a verbal stateraent 03' Mr, J. J. Deviny, 
Executive Vice President of the United Typothetae of America, the 
national Code Authority of the Commercial Belief Printing Industrj'". 



8315 



-29- 
CKAPTE2 VI 

EFFECT OF THE COKE ON IlIDUSTHY 

It vjould be pres^jjnptious to make r,nr/ categorical statement as to the ef- 
fect of the Code -upon the 31 G-raphic Arts Industries as a •unit. Some of them 
have -oiidoubtedly henefited; other, according to the stfiteinents of their Code 
Authority secretaries, claim that 'the Code has had little effect.l/ TTith a 
Code having the flexibility of the Graphic Arts Code, it is obvious that its 
provisions are better designed to fit the needs and solve the problems of some 
of its constituent industries than others. 

Printing: Activity njid Hours of flovk 

There are certain yardsticks uhich supply indirect evidence that the Code 
is fulfilling its purpose in red\;cing hours and raising wages. For instance, 
in book and job printing T)lants, there has been a,n increase in the index of 
printing activity from a low point of 55.2 in ilarch, 1933, to a high point of 
72.4 in December, 1934.2/ During this period the average veelily hours in book 
and job printing increased only from 36.4 to 57,3,2/ i^hus, an increase in the 
index of printing activity of approximately 31 per cent between these two per- 
iods was accompanied by an. increase in average weekly hours of only about 3 
per cent« Employment rose meanwhile from an estimated total of 100,400 to 
117,000 - an increase of 17 per cent. 5/ Granted that a number of other factors 
enter into the situation, the inference may nevertheless be drawn that the 
hour provisions of the Code have had the effect of keeping down hours and 
spreading emplo-/Tnent. A similar situation, it may be added, exists in the 
newspaper and periodical fields I'here increases of 38 per cent in the index 
of activity.' for the former and of 30 per cent for the latter, for the "oeriod 
March, 1933 to December, 193'^,^ were accompanied by a decline of 7 -oer cent in 
weekly hours worked.^ 

Wages 

With respect to wages, 3ureri,u of Labor Statistics data show that between 
March, 1934 (just after the Code went into effect) and December, 1934, there 
was sn increase of roughly 4 per cent in the hourly wage of employees in the 
Printing and Publishing Industries. The average weekly payroll showed ihcxrccsBS 
of about 7 and 15 per cent respectively dtiring this period. W 

Profits 

Under the Code there has been an increase in profits in the Gra^-ohic Arts 
Industries, Comprehensive profits data for the current j'-ear are not ava,ilable. 
The following figures, altho'ogh thej^ apply to a sample of 30 presumably re- 
latively large companies, may nevertheless be taken as an indication of recent 

trends in the Graphic Arts Industries. 

1/ Lir, A. H, Ferry, Secreto.ry of the Code Authority for the Securities and Bpnl 
Note Engraving aJid Printing Industry;- made a verbal statement to this effect, 
2/ United Tjnpothetae index shifted to 19c9 base bjr NBA. 
3/ Bureaii of Labor Statistics, Trend of SmrjlcTnont . 

4/ Index of newspaper advertising lineage constriactcd by ERA from data publish- 
ed in Media Records ; index of ma-gazine advertising lineage constructed by 
KM from data published in Printers I n].:. 
5/ Bureau of Labor Statistics, Trend of Siplo'~ient . 

_§/ Basic data from Bur^.-au of Labor Statistics, Trend of Fm-olo^ment . Figures 
for the Industry as a whole obtained ''oj cohoining "Book and Job" and "Hew- 
pax)er and Periodicals" groups. 
8315 " 



-30- 



Tatle XXI 



Changes in Corporation Profits in the Printing and 
Publishing Industry, 1933 to 1934 



Year 



1933 
( thousr-nds) 



1934 
( thousands) 



Per Cent Ch3,n?:e 
1933 to 1934 



Het Profits a/ 
ilet Worth bj 
Per Cent Return 



$ 5,978 
206,843 
2.9 



$ 13,488 

174,820 

7.7 



1- 125.6 
- 15.5 
+ 165.5 



Source: ITational City_ Bank Letter, April, 1935, p. 58. 

a/ 'Met orofits are shovm after depreciations, interest, tazes, 
and other charges and reserves, out before dividends. 

t/ '"et "orth includes "book value of outstanding preferred and 
common stock and surplus acco-unt at "be^innin,^ of each year. 



A s-^jrvey conducted cy the Texas Zone A.fency of the Commercial 
Relief Prir.tins Industry/ late in 1934 sho^s that about 77 per cent of 
Texas printers have enjoyed an increase in their volume of business, 
avera;;:ing from 20 to 25 per cent, and that approzimately 80 per cent 
of this -,TOup reported an increase in profits avera/ing about 35 per 
cent. 

Price Cutting 

Reoorts from such localities as San Francisco and Pittsburgh 
indicate that the Code is serving to halt price cutting in those re- 
gions, and that in other sections of the country - Hew York City and 
Ilorth Carolina, for exanrple - adequate cost-finding systems are being 
installed, i^hich shoi'ld result in a greater rneasiire of price stabili- 
zation. 



8315 



-31- 

CI-IAP'rEll VII 

THA-DE ASSOCIATION HISTORY AlTD lABOR OHGAITIZATIOIIS 

Cooperative ort:aniEation in the Gra):iic Arts Industries is stronfr, and 
there are nor? approxiaatel;'" 30 trade asnociations fvuictionin;.=', there "being 
at least one for each industr;,'- loiider the Code. 

U. T. A. and T.. S. A. 

The tuo largest and oldest assccintinns are the United T^'^othetae of 
Araerica, and the national Editorial Association. The foraer was organized 
in 1887 as an association of comuercial -rrinters. Its nenhership at the end 
of March, 19S5, was aloout 5,000 l/ with headquarters in Washin:'^jton, D. C. 
The national Editorial Association was orgaiiized in 1885 as an association of 
newspaper pu"blishers, although now its rnenhership includes some joh printers. 
In Jvly, 1953, it liad 7,729 rienoers, 2/ with headquarters in Chicago. 

Tlie former association is largely'- decentralized, having 17 zone and 126 
regional agencies, while the latter has a regional branch in each of the 
48 states. These two associations act as Code Authorities for approxinately 
35,000 estahlislunents out of sone 41,000 in the Graphic Arts Group, 

Other Associations 

Other trade associations of inporteaice are the Periodical Puhlishers' 
Institute, the Book Manufacturers' Institute, the Lithographers' National 
Association and the Engraved Stationary Ivlanufacttu'ers ' Association. Their 
Boards of Directors constitute the Code Authorities of their respective 
industries. 

Rela.tionship Between Laoor and Hanagenent 

Slcilled erapl03^ees in the Graphic Arts Industries are oj).ite strongly 
unionized, particularly in the relief-printing field, where there has teen 
consideralile trouhle "between lahor and managenent . This applies especially 
to the Metropolitan Districts in the ITorth, where the principle of collective 
"bargaining is generally recognized. 

Competitive and Regional Groups 

Ifot only do a num"ber of industries under different process groups in 
the Graphic Arts Code compete with one another, "but associations - "both 
national and regional - in the sane process group also compete. Tlie following 
are outstanding examples of competition within the ssirae process group: 

1. Code Agencies of Zone 16 (llew Yorh City) and Zone 17 (Chica;£:o) with 
Zone 5 (all southern states e::cer)t Texas) and Zone 8 (Tezcas). These are zone 
offices in the ConLiercial Relief Printing Industry. The first two zone 
agencies represent the view-point of the metropolitan centers as against 

1/ Ver"bal statement of its Ei-cecutive Vice President, Jolin J. Deviny. 

2/ Estimate of Kenneth 3aldrid,:e, Vice President of II. E. A., at Puhlic Hearing 
on Graphic Arts Code held Septem"ber 18, 1933 (Volume 1, Page 72, Transcript.) 

8315 



-33- 

those of the noro predorninentlj'' rv.ral South. The former rei^resent regions 
where ther3 is an a'bunda.nt la'oor supply as contrasted with regions where 
latov is scarce. The tr;o southern zones claim that the ilew Yor]; and Chicago 
printers dictated the classified wa^e scales in the Code, v;hich ro"b then of 
price advantai-^es. 

2, United T'^'jothetae of Anerica vs. national Editorial Associs.tion . - 
The IT. S. A. - presents rural newspapers chief 1:", and Kany of these operate 
snail covimerc 1 reli<ii'-printin;^- plants. Tho U. T. A. on the other hand, 
while represe ing- manrj small esta"olishn3:its, is clained to he dciinated hy 
large concern-. Hence, there is a claL;h of interests involved hetween large 
and small concerns. 

The chief ersxiples of conpetition r.j.iong different process groups are 
as follows: 

1. Securities and Bank ITote JSriigravinig ajid Printinp,; vs. Lithorra'phic 
Printing . - There is keen conpetition for hiisiness "between the makers of 
engarved securities and the producers of lithographed securities. 

2. Plio to-Lithographing vs. Connsrcirl Relief Printing . The cheaper 
process of photo-lithographing has nade large inroads on relief printing, 
p8.rticularly in the case of small orders in which the unit cost is high. 
Tlius the tro ;:)rocesses have "oecome highly competitive. 

3. Steel and Co-oTJerolate Engraving vs. Connercial Relief Printing . 
\iniile these t\70 groups do not usr^lly conpete for the sa'ie class of ousiness, 
there are sufficient horderline cases to sujpply keen competition in sttch 
products as greeting cards, raid certain types Of stationerj'. 1/ 

Labor Organizations 

The development of trade iriions in the Graphic Arts Industry dates 
from 1852, when the International 'lirpographical Union wat, formed. In its 
early ^''ears the tmion vifas the only one in the field and emhra.ced all crafts 
in the Printing Industry. Beginning in 1390, however, a movement toward 
the estahlislment of uiiions in the various crafts was sta,rted, so that to- 
da.y there are seven unions iri the Printing Industry. Five of these comhined 
to form the International Allied Printing Trades ^.ssociations, an alliance 
whose chief function is the issii^nce and control of the union lahol of the 
allied printing trades. 



1/ Tne above cases are based on verbal statements of the secretaries or 

other officials of the Code Authorities and Code Administrative agencies 
concerned. 



8315 



-33- 

Trade Union Lien^oership 1929 a/ 



Union 



International Trpo^^raohical Union 
International Printin/5 Presshicn 

and Assistants Union 
Intsmational Lrotherhood of lool;- 

"binders 
Analganir ted Lithogra-ohers 
International Plate Printers, Die 

Stgunpers and Sngravors Union 



Date 
Or.'^aniL^ed 



1852 

1889 

1S92 
1832 

1892 



Me-i3TDershir> 



77,000 

45,000 

14,000 
5, SOS 

1.000 



xotal 



142, 906 



Source: Brreau of LalDor Statistics. Kand'Dook of American Trade Unions . 
(lTtu-.il)er 505) 19 29 ed. 

a/ Onl":^ the five ixiions in the International Allied Printing Trrdes 

Association are listed. The other tvro nnions - Photo-engravers and 
Slectrot:^jiers and stereo t3'^:)ers - are priy.iarily in "branches of the 
Graphic Arts Indiistr-- not covered ''oy the Gra-^hic Arts Code, 

Present Pinancial Condition Comioared 
¥ith 1929, 1931, 1933 

Of the 31 indastries covered "b" the Graphic Arts Code, sone rrere miich 
more serioiisl" affected by the depression than others. Large extrenes oc- 
c-ojrred in this respect nith the Securities and Banl: ilote Engraving Industry-, 
which shoTred a 60 ^ler cent decline in sales cetueen 1929 and 1933, while 
the Stationer],^ and Business i'oms Ind-astr-- over this sane period showed gains 
in sales of over 53 per cent. 1/ Both of these are ■'Oiiusual cases, cited 
simpl:/ as evidence of the difficiolty of appraising the financial condition 
of the Indiistrj'- as a whole in 1934 as against 1929, 1931, ai-id 1933. 

Tahles JDCIII and ]{XIV give the latest available financial data for 
"Printing, Pul)lishing, £ind Allied Industries" as reported by the Bureau of 
Internal Revenue. 



1/ Code Applications of the Industr; 



8315 



TABLE XXIII 

Net Profits And I'et Deficits Of Corporations 

In The Printinf^, Publishing aiad Allied Industries a/ 

iiet Profits ol Net Deficits of Net Profits or Deficits 

Conipanies Report- Conpanies Eeport- of All Conjcaiies Report- 

in^ Net Incone i n.'-; No Net Incone in,'; Inccne Data 

Nvjnher Nrafoer Number 

of Ai.ioxmt of Aiiount of Amount 

Year Returns (thotisands) Returns (Thoxisands ) Returns (Thousands) 

1S29 7,351 $ 290,295 o,059 $ 43,523 11,170 4 $ 246,772 

1930 6,098 222,822 5,271 50,122 11,369 + 172,700 

1931 4,593 124,158 6,810 66,043 11,403 * 58,116 

1932 2,155 6C,551 9,510 87,972 11,665 - 21,421 



Source: Bvjreau of Internal Revenue, Statistics of Income : 

* indicates profit, - indicates deficit. Later datr. not avo.ilable. 

a/ "Net Profits'' - or "Net Deficit" - consists of total comiled re- 

ceipts(see ■T'a'ole XXIV, footnote "c") Less statutor,^ deductions. 

TABLZ :C[IV 

Compiled Receipts, Total Assets, and Net Surpliis of 
Corporations in Pri:iting, Pu''olishin,'5, and Allied Indxistries a/ 

(in t^ioti.srnds) 



Year h/ Corroiled Receipt? c/ Total Assets d/ Net S"arplus _£/ 

1929 $ 2,874,792 $2,833,153 $ 771,360 

1930 2,657,244 3,025,406 856,155 

1931 2,269,058 3,033,984 855,455 

1932 1,792,730 2,934,397 705,330 

Source: Bureau of Internal Revenue, Statistics of Income. Later data not 
available. 

a/ "Co-railed Receipts" represent all a-ctive coroorj-tions whereas "Total 
Assets" and "Net Sur^'lus" re;oresent only corporations filing balsjice 
sheets vrith the Bureau of Internal iLevcnue. liorever, the corporations 
filing balance sheets are not identical for all j^ears. 

b/ Assets and surplus are reported as of the end of the -^ear, or the fiscal 
year ending nearest to December 31, 

c/ "Coi.Tpiled Receipts" consists of gross sales, gross receipts from other 
operc'.tions interest received, rents received, profits from sale of capital 
assets, ajid other items of taxable income, and major items of non-ta::able 

3315 (Continued on follovring page) 



-35- 

TABLE :CCIV (Cont'd) 

incone, - divdends fron do: iGstic corpoi-at ions, £ind interest on povern- 
nenta,! rjeciiritieE. 

d/ All assets after dedv.ction of such reserves as depreciation and "bad 
depots, less surDliiG deficit. 

el Surplus and imdivided -orofits less deficit. For balance sheets r/ith 
no poi- stocl: A'alue, the net 'jorth v/as taliuls-ted with "Surplus and vxi~ 
divided Profits" 'by the 3ureai\ of Internal Hevenue. 

Figures compared rrith those given in the above tables are not p-vailable 
for 1933 and 1934, but there arc certain figures on the relief-printing 
group nhich ni;^ht tend to indicate its econoraic ;-josition for 1934, as against 
the three previous periods. These consist of failices data and the compari- 
son of value of products and c"orrent ciianges in the profits of 30 corpora- 
tions already cited. Other indices follon: 

1. Index of Printing Activit y. With a base of 100 for 1929, the inde:: 
of printing activit:.'- stood at 67.4 for the year of 1934, uhich is materially 
loTTer than the 78.0 inde:: for 1931, but higher than the 65.0 inde:: for 1932 
and the 59.9 inde:: for 1933. ij 

3, Inde:: of Sm'olQ-'.Tncn t. ZLiplo^Tnent in the Print i:ag and Publishing 
Industries stood at 31,2 in 1934 (1929-1C;0), this again being larger than 
in 1932 and 1933, but bclo^7 Lhe inde:: figure of 90.3 in 1931. 2/ 

3, Pa'^roll Inde ::. The payroll inde:: in the Printing and Publishing 
Industries ^hich stood at 100 in 1929, declined to 64.4 in 1934, this being 
lo^er than for an^.' year since 1929 e::cept 1933, rrhen it stood a.t 57,8. 3_/ 

4. Inde:: of ITe'.7S'3a")er Ad^'.^ertising Linea/'ce , With 1929 reckoned at 100, 
the inde:: of nerrspaper advertising lineage stood at 62,1 in 1934, this being 
greater thaii the 56.2 inde-: of 1955 and 61.4 inde:: in 1932, but below the 
inde:c for 1931, nhich stood at 65.2. 4/ 



1/ United T:rpothetae index shifted to 1929 base ''qy iffiA, 

2/ Easic data fron Bureaii of Labor Stc^tistics, Trend of Em-nlo'-.Tnent . Bai-ea.u 
of Labor Sta.tistics inde:: for "Bool: and Job" and "lIev's;oaper and Period- 
ical" groups CTjitiplied by Census base figure and adjusted by KEIA to 
1933 Census totals, 

3/ Basic data from Bui'eau of Laboo Statistics, Trend of En'olo^rraent . Fig^ires 
for the Industry as a whole obtained by combining "Bool: and Job" and 
"lle\7spaper and Periodicals" groups, 

4/ Inde:: computed by ilSA from figures published in Media Records . 



8315 



-36- 

5. Inde:: of i.Iarazine Advert isin,': Linea;^e . Tliis index stood at 59,9 
in 1934 (1223=100) as against 46.0 in 1933, 52.1 in 1932 and 71,2 in 
1931. 1/ 

6. Inde:: of Cost of I.:a,7:azine Advertising; Li:ieaig:e . Tliis index stood 
at 55.3 in 1934 (1929-100) as against 45.6 in 1933, and 55.5 in 1932 and 
31.7 in 1931. 2/ 

While it is not clained that these indices bear a direct relation to 
the financial position of individrial firms in the Industry, the;'- do siipply 
indirect evidence of the fact tlir^t a large proportion of the Industry is 
econorAicallj'- hetter off than in 1933 and hatter in most respects than in 
1932. 



l/ Inde:: computed "by IIRA from figures published in Printers Inl: . 

2/ Inde:: computed hy ITIiA from figares puhlished by Denney Publishing CoLrpany. 



8315 



CHAPTER VIII 

EXPERTS ClI THE GRAPHIC iMlTS IliDUSTRIES 

In each of the 31 induGtries under the Code th3re are one or more men 
with sufficient hack^ound and ejiperience in their particular industry to 
qualify as e:cperts. Wliile these ncunes can all be f-ornished on reauest, it 
is "believed that for present p-orposes the following names selected from key 
industries will prove sufficient, 

1. E. W. Palner . Chairman H.-itional Graphic Arts Coordinating Committee. 
Mr. Palmer has for a nuraher of years "been head of the Kingsport Press, Kings- 
port, Tennessee, one of the largest hook-printin;^ establishments in the 
co\mtry. He played a prominent part in the discussions and conferences held 
in connection" with the Public Hearings on the Graphic Arts Code, being partic- 
ularly active in behalf of the interests of book manufacturers. As chairman 
of the highest f:overning board of the Graphic Arts Industry, he is a qualified 
eiTrpert on the Code as a whole. He can be reached at committee headquarters 

in the Tower Building, Washington, D. C. 

2. Ernest A. Gross . General Counsel to National Graphic Arts Coordinat- 
ing Committee. Mr. Gross, before assuming his present position was with I'IPA. 
as Counsel to the Deputy Administrator who conducted the hearings and confer- 
ences which brought the Graphic Arts Code into being. As such, Mr. Gross be- 
came thoroughly familiar with all viewpoints relating to the Codal provisions 
and since then has served as the channel through which the many problems of 
Code administration have reached MRA. His add-ress is the same as Mr. Palmer's. 

5. John J. Deviny . Executive Vice President, United Typothetae of America, 
Mr. Deviny has spent his entire working life in the Printing Industry, first 
as a plate printer in the Bureau of Engraving and Printing and later as its 
Assistant Director. In 1927, he became associated with the Miller Printing 
Machinery Company of Pittsburgh, but resigned to accept the position he now 
holds. The United Typothetae of /jnerica is both the National Trade Associa- 
tion of the Commercial Relief Printing Industry and the National Code Authority 
for that Industry. Its address is the Tower Building, Washington, D. C. 

4, Kenneth M. Baldridge . President, Ilationnl Editorial Association, joint 
Code Authority for the Non-MetroDOlitan and the Daily Newspaper Publishing 
groups, Mr. Baldridge has had many years of experience in the newspaper field 
as the publisher of newspapers in Iowa, and hence is admirably fitted to ex- 
press the vie^;Tpoint of the small rural newspaper, the interests of which the 
National Editorial Association essentially represents. As Vice President of 
this organization Mr. Baldridge played a prominent part in all pre-Code de- 
liberations and hence is familiar with the Code and the problems which it at- 
tempts to solve. His address is in care of the National Editorial Association 
at 126 North LaSalle Street, Chicago, Illinois. 

5. J. Raymond Tiffany , Code Director, Book Manufacturers' Institute, the 
National Code Authority of the Book Manufo.cturin^ Industry, While Mr. Tiffany 
is a newcomer to the Institute, having been Code Director only since the latter 
part of 1934, he has had considerable c-jrpeTience in the book mamifacturing 
and allied fields. His address is 100 East 42nd Street, New York City. 



8315 



-38- 

6. TTrdter D, rul2-er, Periodical pulilisher's Institute, the National 
Code Authority for the 'periodical Publishing Industry. Mr. Fuller has for 
man;','- years been associated -dth the Curtis Publishing Company -uid is novr 
its president, and hence is familiar '--ith all phases of periodical "oublish- 
ing. Kis address is either in care of the Institute, 232 Madison Avenue, 
Hew York, or at the offices of the Curtis Fablishing Company, Independence 
Square, Philadelphia, 

7. Mauric e Saundors , Secretary Hational Associ^\tion of Lithogra-ohers, 
National Code Authority for the Litho.:ra_jhic Printing Industry. Mr, 
Saunders has been in the lithographic printing business for many years and 
represented this Industry at the Public Hearings on the proposed Code, He 
also served on committees which asjistod in formulating the labor and trade 
practice -orovisions of the Code. His address is 295 Madison Avenue, Hevj 
York City, 

8, T heoTore Isert, Secretary, Engraved Stationery kanufacturers' Asso- 
ciation, National "co'de"Authority for the Steel and Copperplate Engraving 
Industry, Mr, Isert has been associated with a number of firms in this 
Industry and by virtue of his experience and knorrledge of the engraving 
trade represented the association at all public hearings, conferences and 
meetings held in connection v^ith the formulation of the Graohic Arts Code. 
His adoA-ess is 1 East 57th Street, Nev? York, New York. 

9, The service group of industries can offer the following qualified 
experts: 

a. Pred W. Hoc h, Secretary, International Trade Composition 
Association, National Code Authority for the Trade Typesetting Industry, 
Mr. Hoch represented this group at pre-Code hearings and conferences and 
is thoroughly familiar with their Code problems. His address is 461 - 8th 
Avenue, New York, New York, 

b. Albert Abrahams , Advertising Typographers of America, National 
Code Au-thority for the Advertising Typograohy Indu.stry, Mr. Abrahams 
occupies the same relative position with respect to this group as does Mr, 
Hoch to the group just discussed. His address is 451 - 8th Avenue, New 
York, New York, 

c,_ E. III. Diamant , Member of the National Code Authority for the 
Trade Mounting and Finishing Industry (Association of Mounters and Finishers). 
i.'r. Diaroant has been a member of this Industry for aany years axid is 
thorou'hly familiar with its problems. His address is 110 East 42nd Street, 
New York, New York, 

The other ti-o service groups, i.e,, Trade Lithographic Plate Making and 
Trade Binding and P'per Ruling, are very closely associated "'ith the Litho- 
graphic printing Industry and the Book rianuf'o taring Industry respectively, 
the Book Manufacturers' Institute acting as Code Authority for the latter. 
Hence, da.ta on these t-^o industries may be secured respectively from Maurice 
Saunders of the Lithogratohic Printing Coae Aut'^ority and from Mr, Tiffany 
of the Book Manufacturers' institute. 



8315-#