BOSTON PUBLIC UBRABY
3 9999 06317 546 5 o\
NATIONAL RECOVERY ADMINISTRATION
36 ■ - ■•-
DIVISION OF REVIEW
PHOTO ENGRAVING INDUSTRY
WILLIAM B. FITZGERALD
(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-
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:
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.
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.
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:
Wool Textile Industry
45. Automotive parts & Equip.
46. Baking Industry
Coat and Suit Ind.
49. Household Goods & Storage, etc. (Dropped)
Ind. 50. Motor Vehicle Retailing Trade Ind.
51. Retail Tire & Battery Trade Ind.
52. Ship & Boat Bldg. & Repairing Ind.
53. Wholesaling or Distributing Trade
L. C. Marshall
Director, Division of Review
o^%\. I A^l,
CHAPTER I - THE NATURE OF THE INDUSTRY 2
Code Definition 2
Description of the Industry 2
Number of Members 3
Number of Establishments 3
Geographical Concentration 4
Geographical Distribution 4
Capital Investment 5
Decline in Sales 6
Total Value of Products 7
Average Costs of Pho to-Engraved Plates 7
industries Using Photo-Engraved Plates 8
CHAPTER II - LABOR STATISTICS 9
Wage Earners 9
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
Advertising Media 16
Changes in Centers of Production 16
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
Payrolls and. ITages 21
Employment Status of Union Journeymen ... 21
Value of Sales 22
Price Changes 22
Trade Marks 24
Foreign Competition 24
Experts in the Industry 24
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
Table V - VALUE OE PRODUCTS OE THE
PHOTO-ENGRAVING INDUSTRY 7
Table VI - AVERAGE PLATE COSTS, BY KIND OF
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
Table XVI - VALUE OF PRODUCTS, BY STATES 15
Table XVII - NUMBER OP EMPLOYEES IN 621
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
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
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.
THE NATURE OF THE INDUSTRY
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
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.
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
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.
-.• ■ . ..v;>y 5 Dxj ' ' -.: .
NUMBER OP CONCERNS
Year Number of Con-
IS 28 727
Source: NRA Code Application
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.
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.
The number of establishments by states is shown in Table II,
NUM3ER OF ESTABLISHMENTS, 3Y PRINCI PA L STATES a/
U. S. Total
District of Columbi;
Source; Census of Manufacture s, "Photo-Engraving, Not Done in Printing Estab-
a/ Establishments with products valued at less than $5,000 per year not
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,
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.
GAP I T.J, INVESTMENT OE
THE PHOTO-ENGRAVING INDUSTRY
Year Amount of Capital Invested
1930 . 30,627,030
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.
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
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.
IfJMBER OE SHOPS OPENED, CLOSED, MP i.IERGED
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
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,
r ALUE OF PRODUCTS OP THE PHOTO-ENGRAVING INDUSTRY a/
Value of Products
Source; Census of Manufactur es, "Pno to-Engraving, Not Done In Printing Estab-
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
AVZRAGE PLATE COSTS, BY KIND OF PLATE
Kind of Plate
Outlined and Vignetted
Oval and Circle Half-tones
Zinc Half— tones
Combination Half-tone and
Ben Day Zincs
Line Etchings on Copper
$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
4. 98 6.30
Source: American Photo-Engravers Association, Photo-Engravers Bulletin , May
1934, page 9.
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-
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.
NUMBER OF WAGE-EARNERS
Year Number of Wage Earners a/
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.
NUMBER OF WAGE-EARNERS
Year Number of Wage-Earners
Source: NRA Code Aoulication
The total annual wages paid by the industry during the years 1929,
1931, and 1933 are shown in Table IX.
TOTAL A1CTJAL WAGES
Year Total Wages
Source: Census of hanuf actures , "Photo-
Engraving, Hot Done in Printing
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.
cd en en
pi cd -
U UD Pi
CD cd <D
^ o w
to oj lT\vd f-\ en en O v x> co ^t k-ivx> mo w jm — h to (^
co r-t f-vj- o l -D w h in h m n cm to to lt> to w a\ h to
I — I — r'VIH K\W H H HVX) IAWJ- H O Cn W rH
I — CTM — C0U5 CAH O r^i^f U) KMO aiVDWr^OJlTiOOJHCA rH
O tO CT\VDV£> J" KM — rH V£> CPiJ- f — I — t — rH H J IPlfcO LT\ LT\V£> OJ
CT> l^lrH ^f r-t r-l ni^rl W H Vfl U3 rH t-<"\
O rncp, men oj iniriKM — to ir\i-n en o r~n r- oj
HOOtOU) OiHJ- l J OJ OM3J to en co co
<-kj3 oJrHCTir-^ojojojojojj- r-— J- i — r — evi
,H fO rH rH I rH OJ
rH 1^ H/ CTl
r-o oj ht
(\) H H LO
V£)U3 r--0 VX) rH I — en OJ f-\.rf (^h-tOaMnHNir>HC\JCA K>
r^co wo>oiowj-(ri«)j-HHv£)iritovi3j-HUMrM^ ro
,rj-rH p— rH rH LT\LinOJr<-\rHVX>r— CO rH OJJ"
rH l*"\0 unOJ VD Lf^ON KVd- o to H/ rH r— Hr CX\ mvD <JD H^ j- cn r—
rn I — O kmo O \*D CT\ Cn r*-\ LPi J- moJJ-Wr-Hr-HJ- HLO ro
CO K^hOOJ OJ r~— U3 HHI^ITi LPv^t rH in LT\^t VD rl fOH W 1^- O
Cn OJ OJ
tn toooini^iCMvovDr- envx> o^owho cn^o
in irvd- o-ioj i — co co rH oj r— cn mvo hcacm inr-
m inrH HrHOJ H HU3VD WJ- OJ H O ai
OJ OJ r*-\rH
r— to oj
OJ VJD CPi
o erj -h
o ni O
• 6D pj
pi rH Cti
•P ^ -H
-p J>, en
fl fn en
C) O rH
•H CD rH
CD cd cvj
PI Ci> H
W S S^
CD CD ^!
Cd W),r[ o
^ U VI VI
CD -H Cd -H
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
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
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.
AVERAGE MINIMUM WEEKLY WAGE EOR PHOTO-ENGRAVERS AS
SPECIFIED IN LO CAL UNION AGREEMENTS, 1930-1934
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.
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.
VALUE OP PRODUCT AND LABOR COST
Value of Product
Per Cent of Value
Source: Census of Manufactures , "Photo-Engraving, Not Done in Printing
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.
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
a/ In 1929 materials alone represented 13.1 per cent of the total value of
The cost of materials, by principal producing states, for 1933 is shown
in the following table,.
COST OF MATERIALS, FUEL, AND PURCHASED
ELECTRIC ENERGY, BY PRINCIPAL STATES, 1933
Cost of Material, Fuel, and
purchased Electric Energy 1933
U. S. Total
District of Columbia
Source: Census of Manufactures , "Photo-Engraving, Not
Done in Printing Establishment:
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.
VALUE OP PRODUCTS, BY STATES a/
U. S. Total
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
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.
I ! .;>:'•■
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
There is no appreciable foreign market for products of the Photo-
The advertising media used by the industry are the trade publications
whose circulation reaches customers and prospective purchasers of Photo-
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.
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.
7 ;" '**<'. . ' .
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-
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.
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
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.
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.
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-
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. "
■ ■ r — i
1 — 1
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.
TOTAL TS1EXLY PAYROLL A", D AVERAGE WEEKLY I7AGE III
621 ESTAZLISHLIIYTS FOR SPECIFIED DATES
Average Weekly TJage
Total Weekly Payroll (All Employees)
Date Amount ing Period Amount ing Period
1933 $402,001 - $ 43.52
1953 438,271 4-9.0 44.79 +2.9
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.
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
1933 8,521 100.0 1,349 21.7 3,529 41.4 3,143 36.9
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
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.
TOTAL SALES AED AVEPAGE SALES PER SSTAELISHUEET
FOB SPECIFIED I.IOETHS
Average Sales Per
ITumber of ?"on
Establishments Total Preced-
Uonth Re-porting Sales Amoun t ing Period
2,605,321 4,603 + 15.0
2,039,806 4,653 + 0.7
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.
SHOPS CLASSIFIED ACC0RDI1TG TO PRICE CHA.ITGES
III JANUARY 1954 AS COhPARZD vTITH DECEMBER 1933
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
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.
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
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.
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
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,