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Full text of "Evidence study"

BOSTON PUBLIC UBRABY 



* 






3 9999 06317 546 5 o\ 



NATIONAL RECOVERY ADMINISTRATION 

36 ■ - ■•- 



DIVISION OF REVIEW 



EVIDENCE STUDY. 
NO. 29 

OF 

PHOTO ENGRAVING INDUSTRY 



Prepared by 
WILLIAM B. FITZGERALD 



September, 1935 



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



THE EVIDENCE STUDY SERIES 



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

These studies have value quite aside from the use for which they wore 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 

3 

4 

5 

G 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

I 

21 
22 



Automobile Manufacturing Ind. 23. 

Boot ana Shoe Mfg. Ind. 24. 

Bottled Soft Drink Ind. 25. 

'aers 1 Supplies Ind. 26. 

Chemical Mfg. Ind. 27. 

Cigar Mfg. Industry 28. 

Construction Industry 29. 

Cotton Garment Industry 30. 

Dress Mfg. Ind. 31. 

Electrical Contracting Ind. 32. 

Electrical Mfg. Ind. 33. 

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

Fishery Industry 35. 

Furniture Mfg. Ind. 36. 

General Contractors Ind. 37. 

Graphic Arts Ind. 38. 

Gray Iron Foundry Ind. 39. 

Hosiery Ind. 40. 
Infant's & Children's Wear Ind. 41. 

Iron and Steel Ind. 42. 

Leather 43. 
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 

Waste Materials Ind. 

Wholesale & Retail Food Ind. (See No. Si) 

Wholesale Fresh Fruit & Veg. 



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



44 



Wool Textile Industry 

45. Automotive parts & Equip. 

46. Baking Industry 
Canning Industry 
Coat and Suit Ind. 



47. 
48. 



49. Household Goods & Storage, etc. (Dropped) 

Ind. 50. Motor Vehicle Retailing Trade Ind. 

51. Retail Tire & Battery Trade Ind. 

52. Ship & Boat Bldg. & Repairing Ind. 

53. Wholesaling or Distributing Trade 



L. C. Marshall 
Director, Division of Review 



o^%\. I A^l, 



CONTENTS 

Page 

Foreword 1 

CHAPTER I - THE NATURE OF THE INDUSTRY 2 

Code Definition 2 

Description of the Industry 2 

History 2 

Number of Members 3 

Number of Establishments 3 

Geographical Concentration 4 

Geographical Distribution 4 

Capital Investment 5 

Decline in Sales 6 

Failures 6 

Total Value of Products 7 

Average Costs of Pho to-Engraved Plates 7 

Competition 8 

industries Using Photo-Engraved Plates 8 

CHAPTER II - LABOR STATISTICS 9 

Wage Earners 9 

Wages 10 

Wage Earners and Wages, 3y State 10 

Wage Rates and Hours Worked 12 

Union Wage 12 

Labor Cost 12 

CHAPTER III - MATERIALS, RAW AND SEMI-PROCESSED 13 

Cost of Materials 13 

CHAPTER IV - PRODUCTION AND DISTRIBUTION 15 

Interstate Shipment of Products 15 

Methods of Distribution 15 

E;cports 16 

Advertising Media 16 

Changes in Centers of Production 16 



8711 ~i- 



OOMDEHTS (Cont'd) 

Page 

CHAPTER V - IRABE PRACTICES 17 

CHAPTER IV - THE DIDUSTEY - GEHERAL INFORMATION 18 

Trace Association 18 

Labor Relations 18 

Labor Union 18 

Financial Condition 18 

Effect of Code 19 

Employment 19 

Payrolls and. ITages 21 

Employment Status of Union Journeymen ... 21 

Value of Sales 22 

Price Changes 22 

Summary 23 

Trade Marks 24 

Foreign Competition 24 

Experts in the Industry 24 



-oOo- 



8711 ~ii~ 



TA3LES 

Page 

Table I - NUMBER OF CONCERNS 4 

Table II - NUMBER OE ESTABLISHMENTS, BY 

PRINCIPAL STATES 5 

Table III - CAPITAL INVESTMENT OE THE 

PHOTO-ENGRAVING INDUSTRY 6 

Table IV - NUMBER OE SHOPS OPENED, CLOSED AND 

MERGED 6 

Table V - VALUE OE PRODUCTS OE THE 

PHOTO-ENGRAVING INDUSTRY 7 

Table VI - AVERAGE PLATE COSTS, BY KIND OF 

PLATE 7 

Table VII - NUMBER OE WAGE-EARNERS 9 

Table VIII - NUMBER OE PAGE-EARNERS 9 

Table IX - TOTAL ANNUAL WAGES 10 

Table X - NUMBER OF WAGE-EARNERS AND TOTAL 

ANNUAL WAGES PAID, BY STATES 11 

Table XI - AVERAGE HOURLY WAGE, AVERAGE 

WEEKLY WAGE, AND AVERAGE HOURS 

PER WEEK, 423 ESTABLISHMENTS, 

APRIL, 1934 12 

Table XII - AVERAGE MINIMUM WEEKLY WAGE FOR 

PHOTO-ENGRAVING AS SPECIFIED IN 

LOCAL UNION AGREEMENTS , 1930-1934 12 

Table XIII - VALUE OF PRODUCT AND LABOR COST 12 

Table XIV - VALUE OF PRODUCT AND COST OF 

MATERIALS, FUEL, AND PURCHASED 

ELECTRIC ENERGY 13 

Table XV - COST OF MATERIALS, FUEL, AND 

PURCHASED ELECTRIC ENERGY, BY 

PRINCIPAL STATES, 1933 14 



8711 -iii- 



TABLES (Cont'd) 

Page 

Table XVI - VALUE OF PRODUCTS, BY STATES 15 

Table XVII - NUMBER OP EMPLOYEES IN 621 

PHOTO-ENGRAVING ESTABLISHMENTS 

BY PRINCIPAL CLASSES, FOR 

SPECIFIED DATES 20 

Table XVIII- TOTAL WEEKLY PAYROLL AND AVERAGE 

WEEKLY WAGE IN 621 ESTABLISHMENTS 

FOR SPECIFIED DATES 21 

Table XIX - STATUS OF EMPLOYMENT OF UNION 
JOURNEYMEN, JUNE .1, 1933 AND 
JUNE 1 , 1934 21 

Table XX - TOTAL SALES AND AVERAGE SALES PER 
ESTABLISHMENT FOR SPECIFIED 
MONTHS 22 

Table SCI - SHOPS CLASSIFIED ACCORDING TO 

PRICE CHANGES IN JANUARY, 1934 

AS COMPARED WITH DECEMBER, 1933 22 

Table XXII - SHOPS CLASSIFIED ACCORDING TO 

AMOUNT OF DECREASE IN DISCOUNT 

FROM SCALE, IN JANUARY, 1934 

AS COMPARED WITH DECEMBER, 1933 23 



-oOo~ 



8711 ~iv- 



-1- 

Eoreword 

In the preparation of this Evidence Study of the Photo-Engraving Indus- 
try, numerous sources have been consulted in the endeavor to assemble the de- 
sired information. The sources used have, as a rule, been indicated in the 
text of the Study or in footnotes. The sources relied upon most extensively, 
as will be seen, were the Transcript of Hearings on the proposed Code of Fair 
Competition of the Photo-Engraving Industry, the Bureau of the Censes (Census 
of Manufactures, Report on Photo-Engraving), and data assembled by the staff 
of the American Photo-Engravers' Association, the trade association of the 
Industry, and published in various issues of the trade publication, the 
Photo— Engravers' Bulletin. 

The Census of Manufactures has certain definite limitations so far as 
this Study is concerned. First, the latest report is for the year 1933. The 
data fron this source, therefore, do not cover any period of Code operation. 
Second, it excludes all establishments whose gross annual volume of business 
is valued at less than $5,000, whereas "all plants engaged in the production 
or partial production of photo-engraved plates" were included in the Code 
definition. The data taken from the Photo-Engravers' Bulletin, while not 
always comparable with those of the Census of Manufactures, nevertheless, 
give not only a wider coverage in certain respects, but also cover most of 
the period of Code operation and, therefore, provide a basis for determining 
some of the effects of the Code. 

Unfortunately, some of the questions upon which evidence was sought in 
the Study Outline could not be answered as fully or definitely as the writer 
would have liked. On certain phases of the Study the data in our files were 
very meagre and, under the circumstances, it was deemed unwise to consult 
either members of the Industry or the Code Authority for fuller information. 



8711 



-a- 

CHAPTEH I 

THE NATURE OF THE INDUSTRY 

Code Definition 

According to the Code of Fair Competition for the Photo-Engraving In- 
dustry which was approved "by the President December 23, 1933, 

"the term 'photo-engraving industry' as used herein includes 
all plants engaged in the production or partial production 
of photo- engraved plates for sale or for the use and benefit 
of others than the person, firm, or corporation that pro- 
duces such plates, and all persons, firms, or corporations 
that purchase photo-engraved plates for the purposes of 
resale. " 

Description of the Industry 

Photo-engraving is a reproductive art, which involves the use of a photo- 
mechanical process by which relief printing blocks cr plates are produced 
in line and half-tone. It is widely used today in the commercial world for 
the reproduction of artistic designs, such as magazine covers, illustrations, 
greeting cards, half-tone engravings, and other works of art. Photo-engraved 
plates arc also used outside the Graphic Arts Industries in the manufacture 
of such products as wallpaper, carpets, linoleum, cotton goods, silk goods, 
steel products in imitation of wood, chinaware, and shoes. 

Establishments within the Photo-Engraving Industry engage primarily in 
the making of photo-engraved plates for use by members of other industries 
in the reproduction of designs of an artistic nature, such as those mentioned 
above, and do not ordinarily print from the plates which they themselves make. 

History 

The art of photo-engraving, like every other art, has undergone an 
evolutionary development. 1/ Its origin can be traced to experiments in 
England, Prance, and Germany in the early second half of the 19th century. 
The invention of the half-tone process is attributed to a German, George 
Meisenbach, who patented it in 18^2 and was the first to apply it on a prac- 
tical basis. The invention of the process most widely used today, however, 
is accredited to an American, Frederick Ives, who was producing commendable 
photo-engraving by the y*ar 1886. 

From these simple beginnings a little over a half century ago photo- 
engraving has developed into a large industry, comprising approximately 800 



1/ For historical account, see Encyclopedia Britannica 14th ed. , Article 
Photo-Engraving. 



8711 



-3- 

indi vidua! establishments which do an annual volume of business of ah out 
$PO,000,000 in normal times. 1/ 

Number of Members 

There are few branch plants in the Photo-Engraving Industry, conse- 
quently the number of members of the Industry is approximately the same as 
the total number of establishments. 

Number of Establishments 

The total number of establishments in the Industry, including a consid- 
erable proportion of very small plants not assessed for C de Authority ex- 
penditures, on January 1, 1935, was 377, according to a report submitted by 
the Code Authority for the Industry en January 32. Table IV shows a net 
gain of 14 establishments at the end of 1934 over 1933. The number listed 
fcr budgetary assessment by the Code Authority on January 22, 1935, as well 
as on January 1, 1934, the effective date of the Code, was 796. The number 
of establishments assessed by the Code Authority is 30 more than the number 
given in the Code Application (See Table I, below) and 19C more than the 
number reported by the Census of Manufactures for the year 1933 (See Ic'.le 
II), the only year for which comparable statistics are available. 

The discrepancy in the number of establishments given by the three 
sources is not difficult to explain. The Code Application was filed on 
August 15, 1933, and the number of establishments given was clearly recog- 
nized as an approximation. The Census of Manufactures excludes all estab- 
lishments whose annual gross scale volume of business is valued at less 
than $5,000, whereas the other two sources undertake to cover the entire 
Industry as defined by the Code, that is, "all plants engaged in the produc- 
tion or partial production of photo-engraved plates fcr sale or for the use 
and benefit of others than the person, firm, or corporation that praducos 
such plates." Since the Photo-Engraving Industry is comprised to a large 
degree of small plants, many of these automatically fall into the category 
of those not tabulated by the Census Bureau, The percentage of those falling 
into this category during the period covered by the 1933 census appears to 
have been quite large. 

Hone of these sources include "private plants," that is, Photo-Engraving 
plants operated by private printing establishments, such as those of leading 
daily newspapers, periodicals, etc., which produce photo-engravings for 
their own use, but not, as a rule, for sale. 



1/ See testimony in transcript of Code Hearings on the Printing Industry, 
(Sept. 21, 1933), Vol. 3, Page 995. 



8711 



-.• ■ . ..v;>y 5 Dxj ' ' -.: . 



. 






~4~ 

Table I 
NUMBER OP CONCERNS 



Year Number of Con- 
cerns 

IS 28 727 

1930 725 

1932 735 

1933 766 

Source: NRA Code Application 

Geographical Concentration 

The Photo-Engraving establishments which comprise the Industry are to be 
found in 232 cities and towns scattered throughout the country. In spite of 
this fact however, photo- engraving is considered a large-city industry. The 
plants located in 8 large cities, such as Boston, New York, Philadelphia, 
Chicago, and Los Angeles, which constitute only about 30 per cent !_/ of the 
total number, account for the greater volume of business of the Industry. Most 
of the employees of the Industry are also located in the large cities. 

Geographical Distribution 

The members of the Industry are widely distributed over the country, with 
at least one establishment in practically every state. 



1/ See Transcript of Hearings on the Printing Industry, Volume 3, September 
1933, page 1020. 



8711 



~5~ 



The number of establishments by states is shown in Table II, 

Table II 
NUM3ER OF ESTABLISHMENTS, 3Y PRINCI PA L STATES a/ 



State 



1S29 



1931 



193; 



U. S. Total 

Alabama 
California 
Connecticut- 
District of Columbi; 
Georgia 
Illinois 
Indiana 
Iowa 

Kentucky 
Maine 
Maryland 
Massachusetts 
Michigan 
Minnesota 
Missouri 
New Jersey 
New York 
North Carolina 
Ohio 
Okie home 
Oregon 
Pennsylvania 
Tennessee 
Texas 
Virginie 
Washington 
Wisconsin 



654 

4 
54 
15 

7 
10 
57 
11 

3 

6 

6 

7 
43 
28 
13 
24 
10 
lib 

7 
54 

5 
10 
44 

8 
lb 

8 
15 
19 



617 

5 

52 

16 

7 

8 

53 

9 

8 

7 

6 

6 

42 

28 

11 

20 

9 

109 

6 

52 

5 

9 

41 

7 

18 

7 

14 

16 



600 

6 
52 

17 

7 

6 

52 

12 

3 

6 

5 

8 

43 

27 

12 

20 

6 

104 

5 

53 

5 

7 

41 

9 

15 

7 

13 

16 



Other States 



48 



46 



38 



Source; Census of Manufacture s, "Photo-Engraving, Not Done in Printing Estab- 
lishments. " 
a/ Establishments with products valued at less than $5,000 per year not 
included. 



Cap i tal Investment 

The capital investment of the Photo-Engraving Industry is estimated at ap- 
proximately $30,000,000 as will be seen from Coue Application statistics, given 
below, which are the best available. The basis on which the capitalization was 
determined is not stated in any of the reports now the NBA files. In spite 
of the adverse effect of the prolonged economic crisis upon sales values as 
shown below, the capitalization of the Industry has remained virtually unchang- 
ed since 1928; at least this was true down to the end of 1933, as will be seen 
from Table III, below. The statistics for 1934 have not as yet been compiled, 
8711 



but it highly improbable, judging from statistics on other phases of the In- 
dustry, that there was any considerable change in the capitalization of the 
Industry in 1934. 

Table III 

GAP I T.J, INVESTMENT OE 

THE PHOTO-ENGRAVING INDUSTRY 

Year Amount of Capital Invested 

1928 $30,711,518 

1930 . 30,627,030 

1932 30,727,000 

1933 30,629,000 

Source: NBA Code Application 

Decline in Sales 

The total dollar volume of business as reported by the Census of Manufac^ 
tures declined from approximately $77,000,000 in 1929 to $37,000,000 in 1933, 
or about 52 per cent. 

Eailures 

While there were, no doubt, failures in the Photo-Engraving Industry dur- 
ing the years 1929 to 1934, statistics as to the number of failures and the 
amount of the liabilities involved are not available. It will be noted, howevei 
that according to the Census of Manufactures the total number of establishments 
had dwindled from 654 in 1929 to 600 in 1933. This shrinkage is explained in 
part by mergers. It is also possible that a larger number of establishments 
fell into the category of those doing a volume of business valued at less than 
$5,000 annually during these years, and were thus eliminated from the Census 
tabulation. 

Table IV shows the number of shops closed, whether through failure or 
otherwise, along with the number opened and the number merged during the years 
1930 to 1934. It is interesting to note that the number of shops opened each 
year beginning with 1930 exceeded the number closed. 

Table IV 

IfJMBER OE SHOPS OPENED, CLOSED, MP i.IERGED 





Year 




Number of 
Shops Opened 




Number 
Shops 


of 
Closed 




Number of 
Shops Merged 


1930 
1931 
1932 
1933 
1934 




25 
28 
36 
28 
22 






19 
16 
20 
12 
8 








17 

25 

13 

5 

None 


Source: 


The 


Photo-Engravers 


Bulletin 


, (Publ 


ished 


ty 


The 


American Photo-Engrav- 



8711 



ers Association, 166 West Van Buren St., Chicago, 111.) September 193 
page 43 The American Photo-Engravers Association has its own statis- 
tical staff which compiles the statistical material presented in its 
publications. 



.+; . 



-7- 



Total Value of Products 



The total dollar value of products of the Photo-Engraving Industry, exclu- 
sive of that done in printing establishments and in plants whose annual volume 
of business was less than $5,000, is given in Table V, for the years 1929, 1931, 
and 1935. 



Table V 
r ALUE OF PRODUCTS OP THE PHOTO-ENGRAVING INDUSTRY a/ 



Year 



Value of Products 



1929 
1931 

1933 



$77,382,000 
56,020,000 
37,583,000 



Source; Census of Manufactur es, "Pno to-Engraving, Not Done In Printing Estab- 
lishments. " 
a/ Does not include photo- engraving done in printing establishments, or 
the production of plants whose products were valued at less than $5,- 
000 for the year. 

Aver age Costs of Photo- Engraved Plater. 

The Inc.ustry engages almost exclusively in the production of photo-engraved 
plates, which are sold to other industries, as already indicated. The average 
cost of these plates varies a.ccording to the kind of plate involved. The fol- 
lowing table gives the average cost of various hinds of plates from 1929 to 
1933. 



Table VI 

AVZRAGE PLATE COSTS, BY KIND OF PLATE 



Kind of Plate 



1929 



1930 1931 



1932 



1933 



Square Ea.lf-tones 
Zinc Etchings 
Outlined and Vignetted 

Half-tones 
Oval and Circle Half-tones 
Zinc Half— tones 
Combination Half-tone and 

Line 
Ben Day Zincs 
Line Etchings on Copper 
Highlight Half-tones 



$5.73 $5.25 $5.20 

4.23 3.99 4.08 

7.39 6.55 6.80 

5.09 5.30 5.56 

4.16 3.55 3.56 

27.68 20.82 20.60 

12.24 9.14 11.09 

7.75 7.64 8.70 

16.82 19.30 



$4.72 $5.05 

3.89 4.16 

6.44 6.72 

4. 98 6.30 

3.68 3.74 

19.01 21.35 
12.60 

6.59 6.68 

22.41 26.67 



Source: American Photo-Engravers Association, Photo-Engravers Bulletin , May 
1934, page 9. 



8711 



-8- 

Competition 

The Photo-Engraving Industry has no real competitor. However, there is 
considerable competition within the Industry, "between members. Sales of photo- 
engraved plates are diminished somewhat through the operation, "by certain "busi- 
ness establishments, notably leading daily newspapers, of private photo-engrav- 
ing plants in which they perform their own photo-engraving. 

Industries Using Photo-Engraved Plates 

Practically all photo-engraved plates are used outside of the Photo-Engrav- 
ing Industry. These plates are sold not only to certain members of the Graphic 
Arts Industry, but alsc to several other industries, among which are the wall- 
paper, carpet, linoleum, cotton goods, silk goods, shoe, and chinaware indus- 
tries. 



8711 



_9- 

CHAPTER II 

LABOR STATISTICS 

Wage Earners 

The average number of wage earners in the Industry as reported by 
the Censiis Bureau for the years 1929, 1931, and 1933 is shown in Table VII. 

Table VII 
NUMBER OF WAGE-EARNERS 



Year Number of Wage Earners a/ 

1929 12,353 

1931 10,095 

1933 7,907 



Source: Census of Manufacturers , "Photo- 
Engraving, hot Done in Printing 
Es tabl i shment s . " 

a/ Average for the year 



The number of wage earners was reported in the Code Application for 
the years 1923, 1930, 1932, and 1933. For purposes of comparison with 
Census data, the figures, are given in Table VIII for the years specified.. 
It will be noted that for 1933, the only year covered in both tables, the 
figures are not in agreement. As already pointed out, the Census data 
are less inclusive than those pertaining to the Industry as defined by the 
Code, but here, contrary to the usual situation, the Code Application 
figure is smaller than the Census figure. The definition of "wage earner" 
may differ as between the two sources; and the Code Application figure 
should undoubtedly be considered- as an estimate only. Its reliability may 
be questioned, particularly in view of the fact that Code Application 
figures show an increase of 4 per cert in the number of concerns between 
1932 and 1953 (see Table I) but a decrease in the number of wage earners 
of 12 per cent. 

Table VIII 
NUMBER OF WAGE-EARNERS 



Year Number of Wage-Earners 

1928 10,173 

1930 9,500 

1932 8,600 

1933 7,600 

Source: NRA Code Aoulication 



8711 



-10- 

Wage s 

The total annual wages paid by the industry during the years 1929, 
1931, and 1933 are shown in Table IX. 

Table IX 
TOTAL A1CTJAL WAGES 



Year Total Wages 



1929 $31,831,000 

1931 24,990,000 

1933 14,738,000 



Source: Census of hanuf actures , "Photo- 
Engraving, Hot Done in Printing 
Establishments." 



Wage Earners and Wages, By State 

The total number of •.-'age earners together ~ith the total annual 
wages yaid ""oy the industry are given by states in Table X, for the years 
1929, 1931, and 1933. 



8711 



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5711 



-.13- 

Wage Rates and Hours Worked 

A study of 423 establishments made in April 1934 showed the average 
hourly and weekly wage, and the number of hours worked per week to have 
as follows: 

Table XI 
AVERAGE HOURLY WAC-E, AVERAGE WEEKLY WAGE, AND AVERAGE 
HOURS PER WEEK, 423 ESTABLISHMENTS, APRIL, 1934 

Average Hourly Wage $1.27 
Average Weekly Wage 45.73 
Average Hours Per Wk.35.7 

Source: American Photo-Engravers Association, Photo- 
Engravers Bulletin , April 1934, Page 46 

Union Wage 

The rate of pay in the Photo-Engraving Industry is higher than in any 
of the other Graphic Arts Industries. This is accounted for in part by the 
high degree of skill required of the worker and in part by the limited number 
of those qualified for this type of work. Skilled workers in the Industry 
are rather highly unionized and are, therefore, able to command high rates 
of pay, as will be seen in Table XII. 

Table XII 
AVERAGE MINIMUM WEEKLY WAGE EOR PHOTO-ENGRAVERS AS 

SPECIFIED IN LO CAL UNION AGREEMENTS, 1930-1934 

Commercial Shops 



Day Work Night Work 

(Average of 43 (Average of 36 
Year Identical Cities) Identical Cities) 

1930 $ 54.81 $ 61.04 

1931 54.66 61.14 
1952 53.97 60.34 

1933 54.13 60.24 

1934 53.59 60.10 

Source: Photo-Engravers Association, Photo-Engravers Bulletin , 

September issues of the years covered. 

Labor Cost 

The labor cost in the process of production is approximately 40 per cent 
of the value of the products, as will be seen in Table XIII. 

Table XIII 
VALUE OP PRODUCT AND LABOR COST 





Value of Product 


Labor 


Cost 


Year 


Amount 


Per Cent of Value 
of Products 


1929 
1931 
1933 


$77,382,000 
56,020,000 
37,583,000 


$31,831,000 
24,990,000 
14,768,000 




41.1 

44.6 
39.3 



Source: Census of Manufactures , "Photo-Engraving, Not Done in Printing 

Establishments." 
8711 



-13- 

CHAPTER III 

MATERIALS, RAW AND SEMI -PROCESSED 

More than 30 different materials are used in the process of producing 
plates for various types of photo-engraving, most of which are chemicals. 
Amrng these are copper, zinc, glass, wood, cameras, photographic plates, 
ink, dyes, resin, glue, and several acids. 

Cost of Materials 

Except for the year 1929, the Census Bureau combines the cost of materi- 
als with fuel and purchased electric energy. The following table shows that 
the cost of materials, fuel, and purchased electric energy is approximately 
14 per cent of the total value of products. 

Table XIV 

VALUE OE PRODUCT AND COST OP MATERIALS, FUEL, AND 

PURCHASED ELECTRIC ENERGY 

Cost of Materials, Fuel, and 
Total Value Purchased Electric Energy 

Year of Products Amount Per Cent of Value of Products 

1929 $77,382,000 $11,003,000 14.2 a/ 

1931 56,020,000 7,408,000 13.2 

1933 37,583,000 5,602,000 14.9 

Source: Census of Manufactures . "Photo-Engraving, Not Done in Printing 
Establishments." 

a/ In 1929 materials alone represented 13.1 per cent of the total value of 
products. 

The cost of materials, by principal producing states, for 1933 is shown 
in the following table,. 



8711 



-14- 



Table XV 



COST OF MATERIALS, FUEL, AND PURCHASED 
ELECTRIC ENERGY, BY PRINCIPAL STATES, 1933 



State 



Cost of Material, Fuel, and 
purchased Electric Energy 1933 



U. S. Total 

California 
Colorado 
Connecticut 
District of Columbia 
Georgia 
Illinois 
Indiana 
Kentucky- 
Massachusetts 
Michigan 
Minnesota 
Missouri 
New Jersey 
New York 
Ohio 

Pennsylvania 
Tennessee 
Texas 
Virginia 
Washington 
Wisconsin 



$5,601,528 

295,138 

28,113 

87,283 

43,724 

33,552 

1,289,291 

65,344 

144,624 

164,780 

327,242 

73,880 

99,589 

44,(596 

1,856,466 

296,743 

300,266 

36,243 

47,617 

28,744 

30,500 

92,142 



Other States 



215,551 



Source: Census of Manufactures , "Photo-Engraving, Not 



Done in Printing Establishment: 



8711 



-15- 



CHAPTER IV 



PRODUCTION AND DISTRIBUTION 

The total value of products of the photo-Engraving Industry by States, 
for the years 1929, 1931, and 1933 is shown in the table "below. 

Table XVI 

VALUE OP PRODUCTS, BY STATES a/ 

(in Thousands) 



State 



1929 



1931 



1933 



U. S. Total 

California . 
Connecticut 
District of 
Columbia 
Georgia 
Illinois 
Indiana 
Iowa 

Kentucky 
Maryland 
Massachusetts 
Michigan 
Minnesota 
Missouri 
New Jersey 
New York 
Ohio 

Pennsylvania 
Texas 

Washington 
Wisconsin 

Other States 



$77,382 

3,703 
967 

546 

756 

14,540 

1,497 

558 

630 

855 

3,436 

4,331 

1,263 

3,158 

1,273 

20,773 

5,890 

6,077 

944 

624 

1,712 

3,041 



$56,020 

3,235 
961 

516 

398 

9,286 

882 

514 

610 

527 

2,519 

3,010 

1,077 

1,651 

932 

16,083 

4,084 

4,583 

C87 

430 

1,127 

2,908 



$37,583 

2,062 
803 

389 

308 

6,534 

619 

250 

468 

294 

1,582 

1,730 

601 

1,117 

305 

12,001 

2,486 

2,904 

424 

264 

647 

1,795 



Source: Census of Manufactures . "Photo-Engraving, Not Done in Printing 
E st ah 1 i shaent s . 

a/ Does not include the products of plants Taith an output valued at less 
than $5,000. 

Interstate Shipment of Products 

There are no data available to show either the value or volume of 
products of the Photo-Engraving Industry shipped across state lines during 
the period under consideration. It seems a safe inference, however, that a 
considerable portion of the business of the Industry is interstate, since 
large centers of production such as New York City and Chicago are located 
near state lines, and since they supply firms throughout both the metropoli- 
tan and the trading area. 
8711 



I ! .;>:'•■ 






• < 



i 



-16- 

Methods of Distribution 

Photo— Engraved plates are made to special order under a definite agree- 
ment or contract and are, therefore, as a rule, sold direct to the customer 
or consumer. 

Exports 

There is no appreciable foreign market for products of the Photo- 
Engraving Industry. 

Advertising Media 

The advertising media used by the industry are the trade publications 
whose circulation reaches customers and prospective purchasers of Photo- 
Engraved plates. 

Changes in Centers of Production 

There has been no marked shift in the centers of production in the 
Photo-Engraving Industry during the years 1929 to 1935. 



8711 



.-'.- • 



-17- 

CHAPTER V 

TRADE PRACTICES 

Unfair Trade practices in the Photo-Engraving Industry arise primarily 
from competition within the Industry rather than from competition with other 
industries. The most prevalent unfair trade practice "both before and since 
the adoption of the Code had to do with chiseling on prices, which took 
various forms. 1/ The unfair trade practices which the C de sought to elimi- 
nate were outlined in the Code as follows: 

1. Estimates by one photo-engraver upon the work of another for purposes 
of a check estimate without "all copies and specifications involved 
in the original order." 

2. Successful competitive bidding for orders without making known, upon 
the request of the unsuccessful bidder, the conditions under which 
the orders were obtained. 

3. The granting of large cash discounts. 

4. "The secret payment or allowance of rebates" or their equivalent and 
the unequal treatment of purchasers. 

5. Commercial bribery, that is, the rewarding of an employee or agent 
of one member of the industry by another member "in relation to the 
business of the employer of such employee." 

6. Offers to supply any product of the photo-engraving industry gratis 
or "below cost to influence the sale of other products or services." 

7. Offers of other products or services gratis or below cost to influ- 
ence the sale of any product of the Photo-Engraving Industry, 

8. "Inducing breach of contracts or agreements," and resorting to other 
practices designed to injure a competitor. 

9. The publishing of inaccurate or misleading advertising in any form, 
and the misrepresentation of any goods, services, or policies of the 
member of the industry involved. 

10, The insertion in any quotation or invoice of any statement "inaccurate 
in any material particular. 11 

11, The attempt by a member of the industry to "induce the breach of an 
existing contract between a competitor and his employee or customer 
or source of supply." 

12, The wilful defamation of competitors or the disparagement of their 
products, and policies. 

1/ See report of cost accountant, approved by Edward G. McKinley, C.O.A. , to 
Anna M. Rosenberg, Acting State Compliance Director, NRA, 45 Broadway, 
New York City, October 17, 1934. 

8711 









. 



7 ;" '**<'. . ' . 



-18- 

CIIAPTEH VI 
TEE IHDUSTHT - GEMEEAL I3ST0BMATI0H 

As indicated in the introduction to this report, who to-engraving 
as a practical commercial product had its inception ahout a half century 
ago. It appears to have developed on a larger scale in America than else- 
where. 

Trade Assoc ia tion 

The American Photo-Engraver's Association, the trade association of 
the Photo-Engraving Industry, organised in 1897, has had a continuous history 
of almost 38 years. It is composed of over 500 of the approximately 300 
members of the Industry in the united States, and its members do approximately 
90 per cent of the total volume of business of the Industry. 

This trade association not only cooperates with its members brat sup- 
plies information from time to time to members of the Industry vrho are not 
members of the association and seeks their cooperation in matters pertain- 
ing to the welfare of the Industry as a whole. 

Labor Eolations 

The relationship between labor and management in the Industry appears 
to be amicable in the main as a result of policies of conciliation pursued 
over a period of years. More than 90 per cent of the labor employed by the 
Industry is unionized and consequently the rates of pay are set by mutual 
agreement between the management and the union involved, except in open 
shops. 

Labor Un ion 

The majority of skilled workers in this Industry are members of the 
International Photo-Engravers' Union of Forth America. Local units of this 
union are found in all the leading cities of the United States. The Inter- 
national, according to i.ir. Edward J. Volz, its President, had a membership 
in September 1933 of approximately 9,500 journeymen and apprentices, against 
about 850 journeymen and apprentices outside of the union. 

Financial Condition 

The financial condition of the Industry appears to be relatively good, 
in spite of the fact that sales declined in value more than 50 per cent be- 
tween 1929 and 1933. The capitalisation has remained approximately the 
same. Statistics as to total net profit are not available. However, accord- 
ing to a study made by the trade association in 1926, covering 183 shops, 
profits in that year constituted 6.1 per cent of sales. A similar study in 
1933, covering 396 shops, indicated that profits had declined to .5 per cent 
of sales. 1/ 



1/ Source: American Photo-Engravers Association, Photo-Engravers' Bulletin , 
April, 1934, Page 46. 

8711 



-19- 

E.ffect of Code 

TJhile it is difficult, on account cf the lack of adequate data, to 
determine the full effect of the .Code of Fair Competition upon the Industry, 
the statistical tables following l/ would seen to give sone indication as to 
the irnediate effect. In the absence of statistics covering a longer period 
of code operation, those found in those tables should he relief upon for 
"pointer readings" only, to horror; a phrase froi.i Sir Arthur Eddington, and 
too sweeping conclusions should not he drawn from then as to the ultimate 
effect of the Code. 

Uith the e::ccmtion of Tahle XIX, which gives the employment status 
of journeymen on June 1, 1S34, in corroarison with June 1, 1933, the tahles 
embody statistics onk" for December 15, 1953, approximately two weeks before 
the effective date of the Code; January 15, 1934, two weeks after the Code 
went into effect; and, for purposes of comparison, similar statistics for 
January 15, 1933. 

Eranlo-rnent .- Data on the change in employment between the three periods 
are given in Table XVII. That there was no appreciable change in the number 
of journeymen or apprentices er.nlo3"ed immediately after the Code went into 
effect is probable attributable to the fact that the unions had already 
reduced the hours to 4-0 a week, the Code maximum, in the najority of estab- 
lishments. 



1/ These statistics are taken from a report prepared by the statistics! 
department of the American Photo-Xngravers Association, covering the 
firms reporting on the items under consideration and reprinted in the 
Photo-En -ravers Bulletin of April 1934, under the title: "The Effect 
of Our Code. " 



8711 



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Pa'TOlls and wages . - It will be seen from Table XVIII, that there was 
a slight decline in the average weekly wage, that is, for all employees 
combined, immediately after the adoption of the Code, which can no doubt be 
erqplained by the reduction in the number of hours worked by a considerable 
number of employees in the Industry. 



Table XVIII 

TOTAL TS1EXLY PAYROLL A", D AVERAGE WEEKLY I7AGE III 
621 ESTAZLISHLIIYTS FOR SPECIFIED DATES 



Average Weekly TJage 

Total Weekly Payroll (All Employees) 

Per Per 

Cent Cent 

Change Change 

From From 

Precede Preced- 

Date Amount ing Period Amount ing Period 

Jan. 15, 

1933 $402,001 - $ 43.52 

Dec. 15, 

1953 438,271 4-9.0 44.79 +2.9 

Jan. 15, 

1954 442,085 -»0.9 44.26 -1.2 



Source: American Photo-Engravers Association, Photo-Engravers Bulletin , 
April 1934, Pare 50 



E:.vlo7Tient Status o f U nion Jour n eymen . - The number of union journey- 
men employed full time almost double, according to the data shown below, 
between June 1, 1935 and June 1, 1534. However, the exact percentage in- 
crease which came during the five months after the Code actually went into 
effect can not be determined from the available data. 

Table XIX 

STATUS OF EuPLOYMElTT OF UIJI01T JOUEIIEYI.IEII, 

JUKE 1, 1933 AED JUKE 1, 1934 

Total Employed Employed 
Journeymen Full Time Part Time Unemployed 
Per Per Per Per 
llumber Cent lumber Cent Ilumber Cent lumber Cent 

June 1, 
1933 8,521 100.0 1,349 21.7 3,529 41.4 3,143 36.9 

June 1, 
1954 8,505 100.0 5,407 40.3 2,836 33.3 2,199 25.9 



Source: American Photo-Engravers Association, Photo-Engravers Bulletin, 
8711 September 1934, Page 45 



-22- 



Valve of Sales . - The average value of sales per establishment in- 
creased .7 "oar cent "between December 1933 and January 1934, but it is not 
known whether this was an accelaration or slackening of the rate of in- 
crease, since data for the nonths between January 1S33 and Decer.iber 1933 
are not available. 



Table XX 

TOTAL SALES AED AVEPAGE SALES PER SSTAELISHUEET 
FOB SPECIFIED I.IOETHS 



Average Sales Per 
Establishment 



Per 
Cent 
Change 
ITumber of ?"on 
Establishments Total Preced- 
Uonth Re-porting Sales Amoun t ing Period 

$2,153,755 $4,003 

2,605,321 4,603 + 15.0 

2,039,806 4,653 + 0.7 



Jan. 


I 0,3 


533 


Dec. 


1955 


566 


Jan. 


1934 


615 



Source: American Photo-Engravers Association, P ho t o - higraver s Lull e t i n , 
April 1934, ps ;e 31 



P rice Change s.- The following table indicates that a considerable 
portion of the Industry's members increased their prices innediat ely after 
the Code went into effect on January 1, 1934. 

Table XXI 

SHOPS CLASSIFIED ACC0RDI1TG TO PRICE CHA.ITGES 
III JANUARY 1954 AS COhPARZD vTITH DECEMBER 1933 



Sho-os 



Lumber Per Cent 

hind of Change of Total 

Charging higher prices 384 65.4 

Charging lower prices 68 11.6 

Ho change in nrices 135 23.0 



Total Re-oortinc 587 100.0 



Source: American Photo-Engravers Association, Photo-Engravers Pullet in , 
April 1934, Page 31 

8711 



-23^ 

Table XXII, which supplements the above table, shows the increase in 
prices as indicated Toy changes in the discounts from scale. The "scale" 
is a standard price list in wide use throughout the Industry? - . A decrease 
in the discount fron this scale amounts to an increase in price. 

Table XXII 

SHOPS CLASSIFIED ACCORDING TO AMOUNT 07 DECEEASE III 
DISCOUNT FRO'i! SCALE, 117 JANUARY 1934 AS COliPARED 

WITH DECEI3ER 1S33 



Per Cent Decrease 

in lumber of Shops Per Cent of Total 

Discount Prom Scale Reporting Shops Reporting 

0-4.9 168 44.6 

5.0 - 9.9 97 25.8 

10.0 -14.9 59 15.7 

15.0 -19.9 27 7.2 

20.0 -24. £ 16 4.3 

Over 25.0 9 2.5 



576 100.0 



Source: American Photo-Engravers Association, Photo-Engravers Bulletin , 
April 1934, Page 32. 

Prom these statistics it would appear that no large increases in prices 
were made by any considerable number of the members of the Industry as a 
result of the adoption of the Code. 

Summary .- In general, the Code seems to have affected small establish- 
ments less than large ones. According to the statistical report of the 
American Photo-Engravers' Association referred to above, "The data with 
regard to small establishments indicate that the small shops have not in- 
creased employment to the same extent as large shops; have not increased 
payrolls proportionately to the increase in larger establishments and have 
not enjoyed as great an increase in sales. It would therefore seem that 
Code operation has not injured the smaller enterprises but, on the contrary, 
has given them a certain amount of advantage over their larger competitors. "1/ 

A further appraisal of the effect of the Code upon the Industry is to 
be found in the "Annual Reports of Officers" of the American Photo-Engravers' 
Association. The following excerpt from these reports, reprinted in the 
Photo-Engravers Bulletin , 2/ is significant since it is regarded as express- 
ing the opinion of the national association: "The past year witnessed fewer 



1/ Prom the Photo-Engravers Bulletin , April 1934, Page 33. 
2/ September 1934, Page 43. 

8711 



-24- 

changes in plants, ownership and aana -orient than erqperienced since the husi- 
n ss breakdown in 1929. This can most likely he attributed to the stabiliz- 
ing effect of the Code of Fair Competition for the Photo-Engraving Industry 
and improved business conditions." 

Trade 1 Har ks 

While trade-marks are used in the Photo— Engraving Industry, they are 
not so essential to this Industry as to many others, since practically all 
of its business is done to the special order of a given customer. However, 
Article IX, Section 9 of the Code of Fair Competition undertakes to -protect 
the trade-marl: of each member of the Industry against use by another member. 
As a rule, the printing plate? manufactured by members of the Industry are 
of no practical use to anyone except the person or firm for whom they were 
made and any attempt at piracy of trade— marks could easily be traced. 

Foreign Competitio n 

The Photo-Engraving Industry has no competition to speak of from the 
foreign market. 

Experts in the Industr" - 

Among those most familiar with conditions in the Industry is Mr, Louis 
Flader, Executive Secretary, Code Authority for the Photo-Engraving Industry, 
166 West Van 3uren Street, Chicago, Illinois, who can qualify as an erpert. 
He has been connected with the Industry for a number of years in an executive 
capacity and is the author of a book entitled, The Art of Photo-Engravin g, 



8711-#