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NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
EVIDENCE STUDY
NO. 18
OF
THE HOSIERY INDUSTRY
Prepared by
W. CARLTON HENDERSON
November, 1935
PRELIMINARY DRAFT
(NOT FOR RELEASE: FOR USE IN DIVISION ONLY)
TEE EVIDENCE STUDY SERIES
m
Tnese s
The EVIDENCE STUDIES wore originally planned as a means of gathering evidence
earing ueon various legal issues which arose under the National Industrial Rc-
jvery Act.
studies have value quite aside from the use for which they were original.:
ntended. Accordingly, they are now made available for confidential use within the
ivision of Review, and for inclusion in Code Histories.
The full list of the Evidence Studies is as follows:
Mason Contractors Industry
Men's Clothing Industry
Motion picture Industry
Motor Bus Mfg. Industry (Dropped)
needlework Ind. of Puerto Rico
painting & Paperhanging & Decorating
photo Engraving Industry
Plumbing Contracting Industry
Retail pood (See Ho. 42)
Retail Lumber Industry
Retail Solid Fuel (Dropped)
He tail Trade Industry
Rubber Mfg. Ind.
Rubber Tire Mfg. Ind.
Silk Textile Ind.
Structural Clay Products Ind.
Throwing Industry
Trucking Industry
Waste Materials Ind.
Tnolesale & Retail Pood Ind. (See No. SI)
Wholesale Fresh Fruit & Veg.
In addition to the studies brought to completion, certain materials have been
-.ssenbled for other industries. These MATERIALS are included in the series and are
ilso made available for confidential use within the Division of Review and for in-
clusion in Code Histories, as follows:
1.
Automobile Manufacturing Ind.
OO .
2.
Boot and Shoe Mfg. Ind.
24.
3.
Bottled Soft Drink Ind.
25.
4.
Builders' Supplies Ind.
26.
5.
Chemical Mfg. Ind.
27.
6.
Cigar Mfg. Industry
28.
7.
Construction Industry
29.
8.
Cotton Garment Industry
30.
9.
Dress Mfg. Ind.
31.
10.
Electrical Contracting Ind.
32.
LI.
Electrical Mfg. Ind.
33.
12.
Fab. Metal Prod. Mfg., etc.
34.
13.
Fishery Industry
35.
14.
Furniture Mfg. Ind.
36.
15.
General Contractors Ind.
37.
: 6.
Graphic Arts Ind.
38.
7.
Gray Iron Foundry Ind.
39.
.3.
Hosiery Ind.
40.
-3.
Infant's & Children's Wear Ind.
41.
lJ.
Iron and Steel Ind.
42.
1.
Leather
43.
'2.
Lumber & Timber prod. Ind.
54. Wool Textile Industry
15. Automotive parts & Equip.
±6. Baking Industry
17. Canning Industry
43. Coat and Suit Ind.
Ind.
49.
50.
51.
52.
53.
Household Goods & Storage, etc. (Dropped)
Motor Vehicle Retailing Trade "Ind.
Retail Tire & Battery Trade Ind.
Ship & Boat Bldg. & Repairing Ind.
Wholesaling or Distributing Trade
L. C, Marshall
Director, Division of Review
CONTENTS
Page
CHAPTER I - DESCRIPTION AND SCOPE 1
Operations of the Industry 2
Plant Locations 3
Investment , Volume and Value of Products 5
CHAPTER II - LABOR STATISTICS 7
Employment 7
CHAPTER III - MATERIALS - RAW AMD SEMI-PROCESSED 12
Materials Used. 12
CHAPTER IV - PRODUCTION AND DISTRIBUTION 15
Export s and Import s 20
CHAPTER V - TRADE PRACTICES 21
APPENDIX 22
-oOo-
9094 -i-
TABLE I -
TABLE II -
TABLE III -
TABLE IV -
TABLE V -
TABLE VI -
TABLE VII -
TABLE VIII -
TABLE IX
TABLE X -
TABLE XI -
TABLE XI I -
TABLE A
TABLES
Page
NUMBER OF COMPANIES AND PLANTS, BY
STATES DECEMBER 1934 4
DISTRIBUTION OF COMPANIES WITH PLANTS
IN MORE THAN ONE STATE APRIL 15, 1935 5
VOLUME AND VALUE OP PRODUCTS 1929,
1931, 1933 6
NUMBER OF EMPLOYEES 1929, 1931, 1933 7
NUMBER OF EMPLOYEES 1934, APRIL 1935 7
NUMBER OF EMPLOYEES, BY STATES ONE
WEEK IN MARCH 1934 9
AVERAGE HOURLY WAGE RATE, AVERAGE WEEKLY
EARNINGS, AND AVERAGE HOURS PER 'REEK 10
AVERAGE HOURLY WAGE RATE, AVERAGE WEEKLY
EARNINGS, AND AVERAGE WEEKLY HOURS FOR
SPECIFIED PERIODS IN IMPORTANT HOSIERY
PRODUCING STATES, 1928, 1930, 1932 11
TOTAL VALUE OF PRODUCTS, TOTAL LABOR
COST, AND TOTAL COST OF MATERIALS,
1929, 1931, and 1933 14
VOLUME OF PRODUCTS, BY KIND AND BY STATE,
1934 16
VALUE OF PRODUCTS, BY KIND AND BY STATE,
1934 17
PERCENTAGE DISTRIBUTION OF HOSIERY
PRODUCTION 19
22
-oOo-
9094
-li-
- 1 -
THE HOSIERY INDUSTRY
Foreword
Most of the statistical material presented in
this report was obtained from the Census of Manufactures ,
the Bureau of Labor Statistics, and the Code Authority
for the Industry.
As explained in Chapter I, the Census and Code
definitions of the Industry are not the same, since the
former comprises only the Hosiery Manufacturing Industry.
The Code Authority data used pertain only to the Manufac-
turing Industry, however, and the data coming from these
two sources as well as from the Bureau of Labor Statistics
are therefore roughly comparable. The usual limitation of
the Census data, arising from the fact that establishments
doing an annual volume of business valued at less than
$5,000 are not included, should be borne in mind.
Due to lack of relevant data, no material has been
presented on Section VI nor on certain topics listed in
other sections of the Outline.
9094
- 2 -
Chapter I
DESCRIPTION AMD SCOPE
Code Definit ion of the Industr y
The Code of Fair Competition for the Hosiery Industry defines the
Industry to include:
"....the manufacturing, finishing, repairing, selling, and/or
distributing "by manufacturers at wholesale or retail, or .
distributing by selling agents, of hosiery, and other related
branches, as may from time to time be included under the
provisions of this Code."
The data presented in this report pertain to the Hosiery Manufacturing
Industry, which is a part of the Census classification for the Knit Goods
Industry. This classification embraces all establishments (except those
having an annual production of less than $5,000) whose principal products
are made by machine knitting, without regard to whether the yarns used are
of cotton, of wool, of silk, or other material, and whether the hose made
are seamless or full-fashioned. Ken's, women's, and children's hose are
included.
Recent Development
The Hosiery Manufacturing Industry ranks within the first twenty
manufacturing industries in irrroortance in the United States as to the num-
ber employed, and the value of product. 1/ For several years, staple items
only were knitted. Ordinary and durable types of yarns were used and
finished in a small range of plain colors. About 1919, however, when many
changes were made in clothing and footwear designs, the Hosiery Industry
"blossomed, out," as it were, and became style conscious also. Fancy and
novelty yarns came into prominence, new and special machinery attachments
were developed, and the trend toward light-weight and sheer hose began.
Wearing quality was sacrificed for appearance and style; the demand grew;
profits increased and offered a very lucrative field for entrepreneurs; and
the Industry expanded to a saturation point with the subsequent diminishing
cf returns, aided to some extent by the general depression in business.
Perhaps the most radical change within the Industry has been the
shift from the manufacture of women's seamless hose to the production of
full-fashioned hosiery. The latter field requires considerably greater in-
vestment than the former, and established seamless hosp companies have been
slow to adapt their operations to the new demand. They have, therefore,
suffered tremendously through lack of business. This is one of the major
causes for complaints of the ills in this Industry. 2/
1/ Based upon Census of Manufactures, 1929 , vol. 1.
2/ Based on opinions of experts in the Industry and the author's
experience.
9094
- 3 -
Total Number of Companies and Plants
According to records of the Code Authority, the total number of
companies in the Hosiery Manufacturing Industry in 1934 was placed at 634.
These companies operated 800 plants. (See Table I, "below.)
Number of Companies and Plents by States
The Hosiery Manufacturing Industry is scattered through 31 states.
It is concentrated in Pennsylvania, where there are 214 companies and 257
plants, and in North Carolina, which lias 165 companies and 195 plants.
The distribution of companies and plants is shown in Taole I.
9094
4 -
TABLE I
NUMBER Or COMPANIES A1ID PLANTS,
BY STATES DECEMBER 1934
State
Companies
Plants
Total
Pennsylvania
Delaware
New Jersey
New York
Connecticut
Massachusetts
New Earap shire
Rhode Island
Maine
Vermont
634
214
1
30
9
3
9
9
4
1
2
300
257
1
31
13
3
9
11
4
1
2
Alabama
Georgia
Kentucky
Louisiana
Maryland
6
28
5
2
3
6
30
6
2
4
Mississippi
South Carolina
Tennessee
North Carolina
Texas
3
6
46
165
1
3
7
62
195
1
Virginia
West Virginia
California
Illinois
Indiana
13
4
8
8
17
5
9
8
Iowa
Michigan
Minnesota
Missouri
Ohio
1
7
4
1
6
3
7
5
1
6
Wisconsin
Mills in more than one state
11
24
17
76
Source: Code Authority Records, Pe"bruary 1935.
9094
- 5 -
As shown in Table II, three-fourths of the 24 companies having mills
in more than one state confine their operations to two states.
TABLE II
Companies with Plants in More Than One State,
"by Number of States Operated in,
April 15, 1935 a/
Number of States Number of Companies
Total 24
Two states 18
Three states 5
Four states 1
Source: Code Authority Eecords, May 23, 1335.
a/ Table A in the Aopendix hereto gives the number and location
of plants of the individual companies.
Capital Investment
The estimated invested caoital in the Hosiery Manufacturing Industry
in 1928 was $400,000,000; by 1930 this had increased to $600,000,000, but
due to liquidations, failures, obsolescence, and the effects of the de-
pression, this dropped in 1932 to $500,000,000. 1/
Volume and Value of Products
The volume and value of products of the Industry are shown in the
following table:
1/ Prom Code Hearing, July 26, 1933.
9094
- 6
TABLE III
Volume and Value of Products in the
Hosiery Manufacturing Industry a/
Yeai
Volume
(000 dozen pairs)
Value
(000)
1929
1931
1933
118,471
103,865
101,925
$516,396
326,492
256,964 b/
Source: Census of Manufacture s, "Knit Goods."
Data for establishments with an annual pro-
duction of less than $5,000 are excluded.
a/ Data apply to production for the year.
Value is figured at prices f.o.b. at the
establishment.
b/ Data include Census classifications:
"Hosiery (except infants' and athletic and
golf hose)," "Infants' Hose," and "Athletic
and Golf Hose." Due to insufficient breakdowns
of tne published data, the figure may not be
strictly comparable with 1929 and 1931, inasmuch
as some of the smaller manufacturers may not be
included.
In 1934, according to the Code Authority records, the volume of
production increased to 103,900,000 dozen pairs, or virtually the 1931
volume, but due to declining unit prices, the value increased to only
$290,000,000. 1/
Productive Capacity
The productive capacity of the Hosiery Manufacturing Industry has
been estimated at an output valued at $625,000,000 and $375,000,000 for
1929 and 1932, respectively.
1/ 1934 data from National Association of Hosiery Manufacturers Year Book
as printed in Knit Goods Weekl y, April 29, 1935. The 1934 data are
not entirely comparable with the earlier data.
9094
-7-
Chapter II
LA3CR STATISTICS
Employment
The following tables show the number of wage earners in the Hosiery
Manufacturing Industry:
TABLE IV
Number of Wage Earners in the Hosiery
Manufacturing Industry a/
Year Number of
Wage Earners
1929 129,542
1931 112,574
1933 115,466
Source: Census of Manufactures, "Knit Goods."
Establishments with an annual production of less than
$5,000 are excluded.
a/ Includes skilled and unskilled workers of all classes; the
average number on payroll during one week at middle of each month.
TABLE V
Number of Employees in the Hosiery Manufacturing
Industry, 1934, and April, 1935
Year Number of
Employees
1934 137,022
April, 1935 140,475 a/
Source: Code Authority Records. The 1934 and April, 1935, data are net
entirely comparable with the data given in Table IV, above.
a/ This is an all time high in employment.
It is impossible to determine from these figures how many of these
employees worked full-time and part-time. This Industry normally has two
busy seasons but the workers usually are employed fairly regularly through-
out the year.
9094
Number of Employees "by States
Table VI presents data showing the number of employees in the Hosiery
Manufacturing Industry, by states, for a given week in March, 1934. From
these data it can be seen that Pennsylvania, North Carolina and Tennessee
are by far the most important states, accounting together for more than
half the total employees in the Industry.
Total Annual Wages
In 1929, the total annual wages in the Hosiery Manufacturing Industry
were $140,000,000; in 1931, $95,000,000; in 1933, $81,000,000; and in 1934,
$108,000,000. 1/ The decline in total wages from 1929 to 1933 was more
severe in Pennsylvania, New Jersey and other Northern States than in the
Southern States, due, in part, to the fact that existing wage rates were
already low in the South and could not be so readily cut as in the North.
1/ 1929, 1931, and 1933 data iron Cens us of Manufactures , "Knit Goods";
and 1934 data from Code Authority.
9094
-9-
TABLE VI
HUMBER OP EMPLOYEES, BY STATES
ONE WEEK III MARCH 1934
Number of
State Employee s
Total for U. S. 137,022
Pennsylvania
Delaware
Hew Jersey
Hew York
Connecticut
Massachusetts
Hew Hampshire
Rhode Island
Maine
Vermont
Alabama
Georgia
Kentucky
Louisiana
Maryland
Mississippi
Scuth Carolina
Tennessee
ITorth Carolina
Texas
Virginia
West Virginia
California
Illinois
Indiana
Iowa
Michigan
Minnesota
Missouri
Ohio
Wisconsin
Mills in more than one state
Source: Code Authority Records,
February 1935.
37
,340
47
3
,960
1
,872
287
961
847
117
4
141
1
,526
5
,233
1
,144
210
271
358
584
13
,007
27
,224
154
2
,485
524
1
,239
1
,793
793
531
882
55
274
5
,877
27
,277
9094.
-10-
Hours and Wage s
The average hourly wage rate, average weekly earnings, and average
weekly hours worked, in the Hosiery Manufacturing Indurtr;- are shown in
the following table. It will "be seen that hourly rates were considerably
higher in 1934 than in 1932. Average weekly earnings increased also,
although they were held down by shortened hours of work.
TABLE VII
Average Hourly Wage Rate, Average Weekly Earnings,
and Average Hours Per Week, 1932-1934 a/
Year
1952
1933
1934
Average Hourly
Wage Hate
$.341
.379
.435
Average
Weekly
Earnings
$13.63
13.85
16.11
Average
Hours
Per Week
42.6
40.6
33.5
Source: Unpublished Hosiery breakdown of Bureau of Labor Statistics,
"Knit Goods" group, covering approximately 70 per cent of wage
earners and 45 -oev cent of firms; prepared by Bureau of Labor
Statistics for HRA, Research and Planning Division.
a/ The figure for the year is the average of 12 values relating
to that week of each month which includes the 15th of the month.
The average hourly wage rate, average weekly earnings, and average
weekly hours for specified periods in the important hosiery producing
states are shown in Table VIII.
9094
-11-
TABLE VIII
Average Hourly Wage Rate, Average Weekly Earnings,
and Average Weekly Hoars for Specified Periods in
Important Hosiery producing States, 1928,1930,1932
Perio
d
State
1928
1930
1932
Sep
t. - Dec.
April -
June
March - June
Ave
rage Hourly
Wage Rate
(cents)
All States
48.8
49.7
37.6
Georgia
24.4
26.5
22.5
New Jersey
79.6
83.1
49.3
North. Carolina
33.4
35.9
29.7
Pennsylvania
62.5
62,4
/
41.9
Tennessee
29.2
30.2
28.7
Ave
rage Weekly
Earnings
(dollars)
All States
23.01
20.83
15.53
Georgia
11.30
11.46
9.68
New Jersey
36.38
36.76
20.32
North Carolina
16.00
15.85
12.38
Pennsylvania
29.80
25.20
17.00
Tennessee
13.97
12.37
12.50
Average Weekly Hours
All States
47.1
41.9
41.3
Georgia
46.3
43.3
42.9
New Jersey
45.7
44.2
41.2
North Carolina
47.9
44.2
41.7
Pennsylvania
47.7
40.4
40.6
Tennessee
47.8
42.6
43.6
Source: Bureau of Labor Statistics, Wages and Hours of Labor in the
Hosiery and Underwear Industries , Bulletin No. 504, p. 48, and
No. 591, p. 10. Data are from sample studies covering about
25 per cent of total wage earners and about 20 per cent of num-
ber of firms, located in 18 or 19 states.
9094
Chapter III
MATERIALS: HAW AND SEMI-PROCESSED
Principal Materials Used
The principal materials used in the Hosiery Manufacturing Industry
are raw silk, thrown silk, mercerised and unmercerized combed cotton yarns,
carded yarn, 'worsted and woolen yarns, rayon and other synthetic yarns,
linen, and various novelty combinations of these yarns. Although some of
these yarns are made or processed by a few companies which have completely
integrated plants, the bulk of the raw material is produced in specialty
mills and plants and offered for sale to the Hosiery Manufacturing Industry
in open competitive markets.
Source of Materials
About SO per cent of all raw silk used in this country is imported from
Japan, and about one-fourth of the total was used in the Hosiery Manufactur-
ing Industry in 1929. 1/ The small percentage of linen used is imported most-
ly from Ireland.
Most of the cotton yarn produced is made from cotton grown in the
southern and southwestern states of this country, namely, Texas, Mississippi,
Louisiana, Georgia, Alabama, North and South Carolina. Some cotton is im-
ported from the British Sea Island ..ossessions and from Egypt.
Rayon and other synthetic yarns are chemically constructed from wood
pulp or cotton linters which are used as a base. The wood pulp comes from
the northern and northwestern sections of this country and Canada. Cotton
linters come from the cotton states noted just above.
Amounts of Haw Material Used
It has been estimated that, in 1929, the Hosiery Industry consumed
99.5 million pounds of cotton valued at $90,780,000, or 29 ner cent of the
total -oi-oduction of 3.5 billion pounds; 22 million pounds of silk valued
at $123,000,000, or 26.7 per cent of the 81.5 million pounds imported; and
19. S million pounds of rayon valued at $26,662,000, or 15 per cent of the
131.3 million pounds consumed in the United States in that year. 2/ Since
1929 there has been a slight shift in the importance of the different
materials used, with decreases in the consumption of wool and rayon and
increases in cotton and silk. The value of the principal materials used
decreased greatly due to the decline in their prices.
1/ Computed from consumption data in Census of Manufactures , 1929, "Knit
Goods," and import data published in the Statistical Abstract of the
United States
2/ Basic data from Census of Manufactures, 1929: Statistical Abstract, 1954 ;
Textile Qrganon of the Tubize Chatillon, Co. (Feb. 1935); and National
Federation of Textiles, 1935.
9094
-13-
Machinery and Equipment
Although it is known that considerable money has been spent in recent
years for machinery and equipment, the amount would be difficult to determine
without a complete canvass of the machinery manufacturers. The more im-
portant machinery concerns are situated in Pennsylvania, New Hampshire,
Connecticut, and Rhode Island, while some full-fashioned machinery is im-
ported from Germany.
Labor Cost and Cost of Materials Com-oared with Total Value of Product
Table IX shows that labor cost is approximately 26 to 30 per cent of the
total value of product in the Hosiery ivianufacturin : ; Industry, while the cost
of materials accounts for 42 to 47 per cent of the total value. From 1S29
to 1933, the per cent of total value going to labor increased slightly and
that spent for materials decreased.
9094
-14-
IA3LE IX
Total Value of Products, Total Labor Cost,
and Total Cost of Materials,
1929, 1931, and 1933
Year
To tal
Value
of
Product
(000 »s)
Total Labor
Cost
Total Materials
Cost
Amount
(COO's)
Per Cent
of Total
Amount a/
(000' s)
Per Cent
of Total
1929
1931
1933
$528,700
331,209
263,534
$140,079
95,129
80,868
26.5
28.7
30.7
$248,657
148 , 835
111,224
47.0
44.9
42.2
Source:
Census of Manufactures, '
'Knit Goods."
Data far es
tablishments
rrith an annual production of less than $5,000 are excluded.
a/ In both 1927 and 1929 fuel and purchased energy accounted for 1.7
per cent of total cost of materials. These items are included in
the totals for each year.
9094
-15-
Chapter IV
PRODUCTION AND DISTRIBUTION
Value c'.iC Volume of Production b~~ St a t _s
Table X shows the volume of production, by states, in 1934, and Table XT
shows the estimated wholesale value of production, by states, for the sane
year.
From Table X it car. be seen that North Carolina and Pennsylvania are by
far the r.iost important hosiery producing states. Together they account for a
little nore than half the total output. In 1934, North Carolina produced about
three tir.es as many seamless hose as Pennsylvania, but only about one-fourth
as many full-fashioned hose. Other imnorta-nt states producing full-fashioned
hose are New Jersey, 'Tisconsin and Tennessee. After North Carolina, the most
important states turning out seamless nose are, in order of their importance,
Pennsylvania, Tennessee, Georgia, Virginia, Nev.' York, Wisconsin, and Illinois.
Comparison of the value of production data presented in Table XI with the
volume of production data given in Table X shows that the relative position
of the various states is not the same in both tables. For example, although
North Carolina's total irouuction was greater in 1934 than was Pennsylvania's,
the value of the output in the former state was only $59,384,000, as compared
with $91,039,000 in the latter state. In Pennsylvania, which produces a much
larger prouortion of full-fashioned hose, unit value is more than trice "hat
it is in North Carolina,
9094
-16-
TABLE X
VOLUME OF PRODUCTS, BY KIND AND BY STATE, 1924
Volume of Production
(OCO of dozen pairs)
Full-Fashioned
Seamless
Total
Total
Pennsylvania
Delaware
New Jersey-
New York
Connecticut
Massachusetts
New Hampshire
Rhode Island
Maine
Vermont
Alabama
Georgia
Kentucky-
Louisiana
Maryland
Mississippi
South Carolina
Tennessee
North Carolina
Texas
Virginia
California
Illonois
Indiana
Iowa
Michigan
Minnesota
Missouri
Ohio
Wisconsin
Mills in more than
one state
Source; Code Authority Records.
30,549
6,508
73,332
9,008
103,881
13,025
9,222
22,247
59
59
1,734
19
1,753
229
2,106
2,335
291
291
96
610
706
156
504
660
46
49
95
1
1
98
98
140
338
978
133
5,521
5,704
865
865
321
321
89
52
141
68
264
332
101
501
602
1,108
8,696
9,804
3,561
27,036
30,597
70
70
194
2,390
3,084
177
9
186
131
1,502
1,633
594
173
767
233
386
619
139
213
352
285
33
318
34
34
328
328
1,682
1,701
3,383
15,516
9094
-17-
TAELE XI
VALUE OF PRODUCTS, BY KIND AND BY STATU, 1934
Estimated, ilholesale Value
of Production (OOP)
Ful ] .- Fa sh i o ne d
Seamless
Total
Total
Perms; Ivania
Delaware
Now Jersey
Hew York
Connecticut
Massachusetts
New Hampshire
Rhode Island
Maine
Vermont
Ala"bana
Georgia
Kentucky
Louisiana
Maryland
Mississippi
South Carolina
Tennessee
North Carolina
Texas
Virginia
California
II lino i s
Indiana
Iowa
Michigan
Minnesota
Missouri
Ohio
"."isconsin
Mills in more than
one state
$133,10:
39,004
$103,611 $236,71^
78,062
12,977
91,059
116
116
10,401
36
10,437
1,330
2,967
4,347
411
411
574
859
1,433
935
709
1,644
276
80
356
2
2
264
264
838
1,179
2,017
1,097
7,772
3,859
1,219
1,219
453
453
537
106
643
410
373
783
604
699
1,305
5 ,635
12,238
18,871
21,351
38 ,033
59,584
419
419
1,167
4,066
5,235
1,061
25
1,086
733
2,118
2, SCI
3,556
344
5,900
1,597
546
1,945
336
301
1,137
1,693
85
1,733
103
105
464
454
10,033
2,398
12,431
12,668
51,672
Source: Code Authority Records.
9094
-18-
Intcrstate Character of the Inioiotr y
By prina facie evidence such as has been presented in Tables X ?n '.1 , it
can readilj 7 "be seen that the traffic in hosiery is national in scope and enter
freely into interstate commerce.
Further evidence of the interstate character of the Industry can be es-
tablished by a careful study of Table XII, which gives a percentage distri-
bution of hosiery production and of population, by states. It is not possible
to make a direct comparison of production and consumption for the individual
states, but in the case of a consumer's goods like hosiery, consumption nay
be said roughly to vary with the distribution of the population. This being
the case, states shown to nave a small percentage of total production and a
large percentage of the total population are necessarily dependent upon "im-
ports" from other states. In the converse situation, hosiery is bound to be
shipped out into other states.
From Table XII it is found that the 10 leading producing states U sup-
plied about 92 per cent of the total output in 1929, but these states account-
ed for only about 43 per cent of the total population as of January 1, 1930.
The lack of detailed breakdowns showing production for various of the states
limits the conclusions which may be drawn to those states for which production
data are separately published. Producing states with very different propor-
tions of production and population are: Pennsylvania, production 42 per cent,
uopulation 8; Forth Carolina production 14 per cent, population 3; and TTiscon-
sin, production 8 per cent, population 2. Important consuming states with
relatively small or noi oroduction are Hew York, Virginia, Ilichigan, Massachu-
setts, Kansas, Florida, and Alabama.
1/ Pennsylvania, North Carolina, Wisconsin, Tennessee, Indiana, Hew York,
Hew Jersey, Georgia, Illinois, and Massachusetts,
QOQA
-19-
TABLE XII
Percentage Dist.-ibation of Hosiery Production, 1929,
ma Population, 1930, by States
Per Cent of Tot-1
Per Cent of Total
State
Hosiery
Popul.
Produc-
tion
tion
State
Kosiery
Pro auc-
tion
Populc
tion
United States
100.0
100.0
Alabama
Arizona
Arkansas
California
Colorado
Connectictit
Delaware
District of Colunbia
Florida.
Georgia
Idaho
Illinois
Indiana.
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
.7
2.2
Nebraska
oO
.4
Ilevada
-a/
1.5
Hew Hampshire
-a/
4.6
New Jersey
.0
.8
He -.7 Mexico
-ft/
1.3
Hew York
-ft/
.2
North Carolina
.0
.4
North Dakota
.0
1.2
Ohio
2.7
2.4
Oklahoma.
.0
.4
Oregon
1.9
6.2
Pennsylvania
5.3
2.6
Hhodc Island
-a/
2.0
South Carolina.
.0
1.5
South Dakota
-a/
2.1
Tennessee
-a/
1.7
Texas
.0
.6
Utah
-a/
1.2
Vermont
1.9
3.5
Virginia
.7
3.9
Washington
-a/
2.1
TJest Virginia
-ay
1.6
Wisconsin
-a/
3.0
Wyoming
.0
.4
.0
1.1
.0
.1
.9
-.4
4.5
3.3
.0
.3
4.6
10.2
14.3
2.6
.0
.6
-ft/
5.4
.0
2.0
.0
.3
42.0
7.9
.2
.6
-ft/
1.4
.0
.6
6.9
2.1
-ft/
4.7
.0
.4-
-ft/
• 3
.9
2.0
.0
1.3
■ "ft/
1.4
7.6
2.4
.0
.2
Other States
4.9
Source: Census of Po-eula.tion, 1930 , and Census of Manufactures. 19~9 .
Population data, as of January 1, 1930.
a/ Included in "Other States." Population in the states so listed
amounted to 34.4 per cent of total.
J j'j-i
Meth od of Shipment
Figures are not available as to the percentage of shipments made "by
railroads, auto trucks, and parcel post, "but it is a fact that all these
methods are used. Mail order houses such as Sears Roebuck, Montgomery TJard,
and the Chicago Mail Order House, and also the Zeal Silk Hosiery Company use
the mails freely.
Exports and Im-oorts
From the reports of the Bureau of Foreign and Domestic Commerce, Depart-
ment of Commerce, it is found that the exports of all types of hosier 1 / to all
countries in 1934 were 589,000 dozen pairs valued at $2,023,000. During the
same period, 597,000 dozen pairs were imported valued at $951,000. During
January and February 1935, the exports were 80,000 dozen pairs valued at
$269,000, and the imports 75,000 dozen pairs valued at $87,000. The greater
portion of these imports were cheap cotton hose from Japan.
Some statistics concerning shipments of hosiery to our island possessions
are given herewith. In 1934, these shipments, which may properly be classi-
fied as interstate commerce, included 74,000 dozen pairs sent to Hawaii, value
at $213,600; and 260,000 dozen pairs sent to Puerto P.ico, valued at $575,000.
During January and February, 1935, Hawaii received 9,700 dozen pairs, valued
at $20,800; Puerto Rico, 69,800 dozen pairs, valued at $95,100.
Advertising Media
Aiding in the sale and distribution of hosiery, all types of advertising
media are used — magazines, ne\7spapers, catalogues, and radio. The Industry
advertises on both a local and national scale.
Trade Marks
Many brands of hosiery are trade marked by manufacturers, selling agents,
and jobbers. Some of the most prominent manufacturers' brands are, Hole-
proof, Interwoven, Kayser, Gotham and Mojud.
9094
Chapter V
THADE PRACTICES
Unfair Trgde practices Before the Code
Prior to the approval of the Code, the Hosiery Industry was somewhat
disorganized, although there had been serious efforts by the National
Association of Hosiery Manufacturers to create and maintain a standard of
ethics of fair play in trading. The most common of these practices were
as noted below.
1. The "chiseling" of prices, which, in many cases, was
not so much the fault of the seller as the misrepresenta-
tion of the buyer in claiming offers of better prices from
unnamed sources.
2. Misbranding and misrepresentation of quality, as implied by
transfers, rider tickets and packing.
3. The giving of special terms and discounts was considered by
some an unfair trade practice, and possibly was the cause of
some of the so-called cut-throat competition.
Effect of the Code on the Industry
Perhaps the Hosiery Industry has profited as much by the provisions in
its Code as any other codified Industry. Speaking in a general way, it may
be said that the entire Industry cooperated nearly 100 per cent in living
up to Code provisions. The desire of the Industry to maintain the status quo
developed under the Code is expressed in a letter recently received from the
Ex-Director of the Code Authority, and present Managing Director of the Na-
tional Association of Hosiery Manufacturers, in which he writes; "This
office, like all industry headquarters, has gone back to the pace which ex-
isted at the time Codes were being formulated and effectuated. We are
devoting every minute of our time and energy to steps intended to save the
values of the recent Code and develop a practical program for the future."
9094
-22-
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