■xJr
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3 9999 06317 547 ^
NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
EVIDENCE STUDY
NO. 30
OF
THE PLUMBING CONTRACTING INDUSTRY
Prepared by
JOHN C. HUMPHREY
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 Recovery Act.
These studies have value quite aside from the use for which they were
originally intended. Accordingly, they are now made available for confidential
use within the Division of Review, arid for inclusion in Code Histories*
The full list of the Evidence Studies is as follows:
1. Automobile Manufacturing Ind. 23.
2. Boot and Shoe Mfg. Ind. 24.
3. Bottled Soft Drink Ind. 25.
4. Builders' Supplies Ind. 26.
5. Chemical Mfg. Ind. 27.
6. Cigar Mfg. Industry 28.
7. Construction Industry 29.
S. Cotton Garment Industry 30.
9. Dress Mfg. Ind. 31.
10. Electrical Contracting Ind, 32.
11. Electrical Mfg. Ind. 33.
12. Fab. Metal prod. Mfg., etc. 34.
13. Fishery Industry 35.
14. Furniture Mfg. Ind. 36.
15. General Contractors Ind. 37.
16. Graphic Arts Ind. 38.
17. Gray Iron Foundry Ind. 39.
18. Hosiery Ind. 40.
19. Infant's & Children's Wear Ind. 41.
20. Iron and Steel Ind. 42.
21. Leather 43.
22. Lumber & Timber Prod. Ind.
Mason Contractors Industry
Men's Clothing Industry
Motion Picture Industry
Motor Bus Mfg. Industry (Dropped)
Needlework Ind. of Puerto Rico
Painting & Paperhanging & Decorating
Photo Engraving Industry
Plumbing Contracting Industry
Retail Food (See No. 42)
Retail Lumber Industry
Retail Solid Fuel (Dropped)
Retail Tra.de 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.
Wholesale Fresh Fruit & Veg. 31)
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 inclusion in Code Histories, as follows;
44. Wool Textile Industry
45. Automotive parts & Equip. Ind.
46. Baking Industry
47. Canning Industry
48. Coat and Suit Ind.
49.
50.
51.
52.
53.
Household Goods & Storage, etc. (Drop-
Motor Vehicle Retailing Trade Ind, ped)
Retail Tire & Battery Trade Ind.
Ship & Boat Bldg. & Repairing Ind,
Wholesaling or Distributing Trad3
L. C. Marshall
Director, Division of Review
C^\-)k *b
CONTENTS
Page
Foreword 1
Chapter I - THE NATURE OF THE INDUSTRY
Definition and Scope of the Industry 2
Number of Establishments
Size of Establishments 3
Geographical Distribution of Establishments 3
Aggregate Capital Investment 4
Estimated Total Value of Business 4
Products of the. Industry 5
Competition from Other Industries 5
Chapter II - LABOR STATISTICS 6
Number of Wage Earners 6
Census of Construction Data 6
Census of Occupations Data 6
Code Authority Data 6
Research and planning Division Data 6
Seasonality of Employment S
Estimated Total Annual Wages Paid 7
Census of Construction Data 7
Code Authority Data 7
Average Hourly Wage Rate
Union Wage Scales
Union Scales of Hours Per Week 9
Average Hours Worked Per Year 10
Child Labor 10
Number of plumbers by Principal States 10
Estimated Total Annual Wages Paid . •
oby principal States 11
Relation of Labor Cost to
Value of Business 12
Chapter III - MATERIALS 14
Materials Used by the Industry 14
Expenditures for Materials 14
Sources of Production of Plumbing
Fixtures and Accessories 15
Relation of Cost of Materials to
Value of Business 17
Chapter IV - PRODUCTION AND DISTRIBUTION 19
Estimated Value of Business by Principal States. • . 19
Interstate Nature of Plumbing Contracts 20
Advertising 21
Shifts in Centers of Production 21
Productive Capacity 21
8644 -i-
CONTENTS (Cont'd)
Page
Chapter V - TRADE PRACTICES 22
Unfair Trade Practices 22
Sid^Shopping . •.'■,: ; 22
Bid-peddling 22
Substitution of Materials 22
Selling Goods or Rendering Services
Below Cost 22
Lumping or Sub-Letting of Labor Contracts 22
Spread of Unfair Trade practices from
One Area to Another 22
Effect of Prices of Individual Members
Upon the National Price Structure 23
Chapter VI ~ GENERAL INFORMATION 24
History of the Industry 24
History of the Industry1 s
Labor Organizations 24
Experts 24
oOo
8644 ~ii-
TABLES
Page
TABLE I - Number of Establishments, by Value
of Business and Kind of Contractor,
1929 3
TABLE II - Number of Establishments by
Principal States, 1929 4
TABLE III - Number of Wage Earners Reported by
2,510 Plumbing-Contracting Establish-
ments, by Months, 1929 7
TABLE IV - Estimated Total Annual Wages Paid:
1929, 1931, 1933, and 1934 8
TABLE V - Average Hourly Wage Rate for Plumbers
in Various Cities, 1929, 1931, 1933
and 1934 8
TABLE VI - Union Scales of Hourly Wage Pates
for Plumbers in 10 Important Cities,
1929-1934 9
TABLE VII - Union Scales of Hours for Plumbers
in 10 Important Cities, 1929-1934 9
TABLE VIII - Estimated Average Number of Hours
Worked Per Year, by Selected Regions, 1929 10
TABLE IX - Total Number of Plumbers and Gas and
Steamfitters and Estimated Number of
Plumbers in Manufacturing and Mechanical
Industries, by Principal States, 193:J ........ 11
TABLE X - Estimated Wages Paid, by Principal
States, 1929 12
TABLE XI - Value of Business Compared with
Annual Wages, 1929 13
TABLE XII - Cost of Materials Furnished and Used,
By Principal Product Groups, 1929 15
8644 -iii-
TABLES (Cont>d)
0O0
Page
TABLE XIII - Volume and Value of Production of the
Chief Enameled Iron Plumbing Fixtures,
by Principal States, 1929 16
TABLE XIV - Value of Production of Plumbers' Brass
Goods and Other Plumbers' Supplies, By
Principal States, 1929 17
TABLE XV - Value of Business and Cost of
Materials, 1929 18
TABLE XVI - Estimated Value of Business, by
Principal States, 1929 19
TABLE XVII - Value of Business Performed in
Home State and Outside Home State,
By Principal States, 1929 20
8644 _iv.
PLUI.IBIITG COHTPACTIhG-
Foreword
There is a decided la.dk of published government data coextensive
with the code definition of the Plumbing Contracting Industry. The Census
of the Construction Industry, taken only for the year 1929, is the prin-
cipal source of relevant data hut for purposes of analysis of the Industry,
as defined "by the Code, its figures are subject to Qualification.
The Census of Construction classifies plumbing contractors hy value
of business, dividing then into two groups: (l) those having a value of
"business of $25,000 and riore in 1929; and, (2) those having a value of
business of less than $25,000 in 1929. In the former group the classifi-
cations hy kind of contractor are "Plumbing" end "Plumbing and Heating,
Combined"; and, in the latter group, "Plumbing and Heating, Combined".
Thus, any combination of Census classifications which includes the total
plumbing contracting business will also include the heating contracting
business, which was not covered "cy the Code definition.
While the Census of Construction data are thus on the one hand too
inclusive for the Industry as codified, they are for another reason not
sufficiently inclusive. The establishments covered by the two combined
Census classifications do not represent the total number of establish-
ments doing plumbing work, since the Census counts as plumbing contractors
only those for whom plumbing is the principal line of work, whereas the
Code is intended to cover also the plumbing work done by other kinds of
subcontractors and by general contractors, as well as work done by
qualified mechanics in the employ of industrial firms and building owners
or operators.
Regarding the Census data, it should also be noted that not all the
establishments reported, every item on the Census schedule. In cases
where complete reporting of an item was lacking, estimates of totals
have been derived from the data furnished by the reporting establishments.
The labor data available are far from complete. In the absence of
statistics on actual earnings, '.-rage rates as reported by the Builders'
Association and by the Bureau of Labor Statistics have been used.
I ; should "be pointed out that the primary data, furnished by ERA,
Research and Planning Division, and by the former Code Authority, represent
estimates rather than statements of fact.
8644
Chapter I
THE NATURE OP THE INDUSTRY
Definition and Scope of the Industry,"
The Plumbing Contracting Division of the Construction Industry, as
defined by the Code,
"includes selling to consumers and/or repairing or installing,
for profit or hire, all types of plumbing equipment and fix-
tures, including water supply systems or parts thereof, drain-
age systems or parts thereof, plumbing connections to air
conditioning systems, air and gas piping, gas and ga.soline
piping, vacuum cleaning systems or parts thereof, such other
piping and equipment as is commonly handled by Master PI limbers,
and all other articles pertaining to plumbing",!/
The term "Plumbing Contractor" or "Master Plumber" as defined by the
Code means:
"Section 2. Any individual who has passed a sat isf actor;'' examin-
ation, where required by law, covering his technical training and exper-
ience in the engineering and manual aspects of his Division; has a
license where required, in conformity with the requirements of the area
in which he operates, or, in areas where no license is required, is
capable of making a satisfactory installation under either the 'United
States Bureau, of Standards' Recommended Minimum Requirements for Plumb-
ing as Revised to May, 1351', or the 'Plumbing Code' approved by the
National Association of Master Plumbers of The United States, Inc., in
Convention June, 1933; or a firm, corporation or other entity organized
for the purpose of selling and installing plumbing products, any member,
officer, or regular employee of which is qualified as above provided.
Copies of said 'Recommended Minimum Requirements' and 'Plumbing Code'
shall be obtainable through the Code Authority. "
The bulk of all plumbing work is done by plumbing contractors
either direct for building owners or under subcontracts through general
contractors. Plumbing work is also done by licensed or otherwise
qualified mechanics in the employ of industrial firms and building
owners or operators, and by homeowners and householders who make their
own installations and repairs.
Number of Establishments
The Census of Construction reported that there were 25,524
establishments doing plumbing contracting work in 1929, of which number
approximately 11 per cent were engaged, in plumbing contracting only,
and approximately 89 per cent of which were engaged in plumbing and
heating contracting combined, (See Table I, below.) Since plumbing
contractors usually are licensed or since their addresses are readily
1/ Code Ho. 244— Supplement ITo. 9
8644
available, it is believed that the coverage of the Census canvass was
practically complete.
ho data are available as to the number of establishments operating
during 1931 and 1933. The Industry presented a list of 25,000 plumbing
contractors in 1934 and the Code Authority showed 25,500 plumbing con-
tractors on its mailing list as of March 10, 1955.
Size of Establishments
As already indicated, the Census of Construction for 1929 classifies
contractors by value of business, dividing them into two groups: (l),
those having done a business of less than $25,000; and, (2), "those having
done a business of $25,000 and over. Host of the establishments were in
the former group, there being 21,498 such establishments, or approximately
84 per cent of the total number of establishments. In the latter group
there were only 4,026 establishments, or approximately 16 per cent of the
total. (See Table I, Below) Only a little more than one-third the esti-
mated total business was cone by the small-sized establishments.
table i
Number of Establishments, by Value of Business
and Kind of Contractor, 1929
Value of Business and
Kind of Contractor
Establi sir"; ent s
llumber
Per Cent
of Total
Value of Business
Amount Per Cent
(000's) of Total
U. S. Total
2b, 524
100.0
$556, 093^/ 100.0
Less than $25,000
Plumbing and Keating,
Combined 21,498
34.2
205, 521b/
36.9
$25,000 and over
Plumbing 2,803
11.0
256,834
46.2
Plumbing and Heating,
Combined 1,218
4.3
93,738
16.9
Source: Census Report, Construction I
ndus
:try, 1929,
Subcontract
ors,
i
"Plumbing, " and "Plumbing and
Pleating,
Comb
ined. "
a/ In part an estimate as explai
ned
in i'ootnot
e b/.
b/ Estimated by multiplying the
avei
•age value
of business
for
the
5,008 reporting establishments Vj the total number of establishments.
C-eogra'ohical Distribution of Establishments
Establishments of the Industry are situated in every State and in the
District of Columbia, Data presented below in Table II show that 68 per
8644
_ 4 -
cent of the total irariber of establishments nere sitxiated in ten states,
lieu Yorl: having about 15 ier cent and Pennsylvania approximately 12 per
cent of the total.
TA3LE II
Slumber of Establishments, by Principal States, 1929
State
Total
lumber of Per Cent
Estahlish- of Total
nents
$25,000 and over
"umber of Per Cent
Establish- of Total
ments
Less than $25,000
lumber of Per Cent
Establish- of Total
ments
U.S. Total 2o,524
100.0
4,026
100.0
21,490
100.0
California
1,554
6.1
255
6.3
1,299
6.0
Connecticut
976
3.9
135
3.4
841
3.9
Illinois
1,323
5.2
294
7.3
1,029
4.8
liassachusetts
' 1,300
5.1
230
5.7
1,070
5.0
Michigan
1,209
4.7
229
5.7
980
4.6
lieu Jersey-
2,016
7.9
241
6.0
1,775
8.3
Hen Yorl:
4,039
15.8
698
17.3
3,541
15.3
Ohio
1,431
5.6
239
5.9
1,192
5.5
Pennsylvania
2,973
11.6
321
3.0
2,652
12.5
Wisconsin
696
2.7
171
4.3
525
2.5
Total foi-
10 States
17,517
63.6
2
,813
69.9
14,704
68.4
Total for
Other States
; 3,007
31.4
1
,213
30.1
6,794
31.6
Source: Census Ile-oort,
Construction
Industry,
1929,
Subcontractors ,
"Plumbing, " and "Plumbing and Heating, Conbined, "
A.^Tre^ate Capital Investment
Estimates as to the total amount of capital invested in the Industry are
not available. Data on the inventor-/ value of construction equipment at the
end of 1929 are available from the Census of Construction, uhich shor the
average value of equipment per plumbing contractor as $2,746, and the average
per plumbing and heating contractor as $5,345. 1/ Since only those firms
xrhich did an annual business of $25,000 end over reported this item, the
average for all establishments would not be so large as these figures indi-
cate.
Estimated Total Value of 3-asiness
On the basis of Census of Construction data, the value of business
for plumbing and plumbing and heating contractors in 1929, is estimated
1/ Census report, The Construction Industry, 1929, Subcontractors,
"Plumbing," and "Plumbing and Heating, Combined," Table 5.
3644
- 5 -
at $556,093,000. (See Table I, above.) Since not all of those establish-
ments in the "less than $25,000" group reported their volume of business
the total for this group has been estimated from the average value of
business per reporting establishment. The value of heating contracting
business which was not covered by the plumbing Contracting Code is included
in the figure, but it would be difficult to find a basis for estimating
accurately the portion of the total which should be allocated to this work.
Products of the Industry.
The principal products sold and/or installed by the Industry are
domestic and industrial water and sanitary systems. ITo data are avail-
able to show the retail sales value or the total installation cost of each
specified product.
Competition from Other Industries
There are practically no other industries whose products compete
directly with those of the Plumbing Contracting Industry, Members of
other divisions of the Construction Industry may be regarded as competitors
of plumbing contractors when they bid on plumbing projects; or, competition
may be said to exist between members of this Industry and homeowners,
householders, and commercial and industrial concerns doing plumbing won: on
their own properties.
8644
-6-
Chapter II
LABOR STATISTICS
Number of Wage Earners
Census of Construction Data, - From the data in the Census of Construction,
the number of wage earners may not be validly estimated even for the reporting
group of establishments having an annual value of business of $25,000 and over,
due to the peculiar characteristics of employment in this Industry. Plumbers
operate in a common pool system. Non- continuous employment with any given em-
ployer, continual rota.tion of plumbers from shop to shop, and high labor turn-
over result in much lost time even during the busy seasons. The Census of Con-
struction data, which show the number of wage earners as of the 15th of the month,
obviously can not take into consideration the rotating aspect of employment.
Consequently, any figure reported by this Census represents only the lower limit
of the number employed by the larger establishmentsc
Census of Occupations Data. - The 1930 Census of Occupations does not list
plumbers separately but combines that classification r/ith the gas and steam-
fitter classification. In 1930, there were reported 237,813 plumbers and gas
and steamfitters, and 5,937 apprentices in all manufacturing and mechanical in-
dustries. In the Building Industry alone there were reported 164,601 plumbers
and gas and steamfitters and 5,475 apprentices. 1/ It should be noted that
these data refer not to the number actually employed in that year, but to the
number reporting themselves as belonging, by occupation, to the plumbing and gas
and steamfitting trades. The use of Census of Occupations data may lead to over-
estimation due to the fact that apprentices, laborers, helpers, and other un-
qualified workers tend to classify themselves as plumbers.
Reports from 4,093 local unions of plumbers and steamfitters submitted to
the Research and Planning Division of N.R.A. in 1934 show that 65 per cent of
their total membership was composed of plumbers. If this ratio were applied to the
Census of Occupations totals would indicate approximately 106,990 plumbers in ad-
dition to an indeterminate number of apprentices, laborers, etc., for the entire
Building Industry in 1930.
Code Authority Data. - E. L. Flentje of the former Code Authority reported
estimates of the number employed as 172,000 in 1929; 140,000 in 1931; 120,000
in 1933; and 130,000 in 1934. 2/
Research and planning Division Data. - A study made by the National Associa-
tion of Master Plumbers covering 7045 firms, showed an average of 6 full or part-
time employees for each plumbing contractor in 1929, and an average of 2.52 em-
ployees for the two-year period during 1932 and 1933. Among the employees report
ed were some engaged part-time in heating and piping and some who worked at both
heating and plumbing. Also, these figures include journeymen plumbers, appren-
tices, warehousemen, wagon drivers, helpers, laborers, bookkeepers, stenographers
and estimators. These averages, multiplied by the numbe r of contractors, would
indicate a total employment of approximately 150,000 in 1929, and 63,000 as the
average for 1932 and 1933.
Seasonality of Employment. - Plumbing contracting is less influenced by
seasonal factors than other divisions of the Construction Industry, largely due
to the steady volume of maintenance and emergency repair work. Census of Con-
struction data, presented below in Table III, indicate that in the 2,510 plumbing
contracting establishments reporting the number of wage earners by months, 3/
the minimum employment of February was approximately 83 per cent of the maximum
reached in August during the year 1929. .
1/ Census of Population, 1930, Occupation Statistics. "Gainful Workers by
Industry and Occupation."
2/ The basis for arriving at these estimates is not known.
3/ A sample which covers about 90 per cent of all the plumbing contracting
,- . . establishments in the $25,000 and over group.
-7-
TABLE III
Number of Wage Earners Reported by 2,510 plumbing-Contracting
Establishments, by Months, 1929 a/
Month
Number of
Wage Earners
Per Cent of
Maximum Month
Average
January
February
March
April
May
June
July
August
September
October
November
December
28,808
26,796
25,748
26 , 898
28,918
29 , 494
30 , 348
30,525
31 , 044
30,900
30,251
23,297
26,480
86.3
82.9
86.6
93.2
95.0
97.8
98.3
100.0
99.5
97.4
91.2
85.3
Source: Census report, Construction Industry, 1929, Subcontractors,
"plumbing.11
a/ The reporting concerns fell in the group having an annual value of
business of $25,000 and over in 1929. The number of wage earners
is reported as of the 15th of each month or the nearest represexita-
tive day.
Estimated Total Annual Wages Paid
Census of Construction Data. - Only the "$25,000 and over" group of
establishments reported on wages in the Census of Construction. These es-
tablishments reported that wages amounted to $89,315,000 in 1929, or 25.9
per cent of the value of business done by their own forces ($344,293,000) if,
If this percentage is applied to the estimated total value of business for
both groups of establishments ($556,093,000) there would be an estimated
total amount of wages of $144,028,000 in 1929. (See Table IV below.)
This figure includes an indeterminate amount of wages paid in heating con-
tracting work, which was not covered by the Code. On the other hand, the
figure is underestimated to a certain degree since a portion of the total
value of business is represented by wages accruing to plumbing contractors
for their own work.
Code Authority Data. - The Code Authority estimates of the total annual
wages paid by the Industry are shown in Table IV, as follows:
1/ This value figure obtained by subtracting from $350,572,000 (See Table I
above) $5,279,000 for sub-contract work let.
8644
TABLE IV
Estimated Total Annual Wages Paid: 1929, 1931, 1933, and 1934-
Year Amount of Total Annual Wages
1929 4189,200,000
1931 126,000,000
1933 84,000,000
1934 123,500,000
Source; Code Authority for the plumbing Contracting Division of the
Construction Industry.
Average Hourly Waee Bate
The average hourly wage rate for plumbers tends to vary with the size
and location of the city of employment, higher rates prevailing in the larger
cities in the northern zone of states. The average rates reported by the
Builders' Association, shown below in Table V, are for union and non-union
plumbers in both large and small cities throughout the United States.
Beginning in 1930, intense competition led to a collapse of the wage-rate
structure with great instability of rates prevailing both in single com-
munities and throughout the country. Under such conditions the wide variation
in rates practically invalidates the significance of an "average" wage rate
for the years following 1950.
TABLE V
Average Hourly Wage Rate for plumbers in Various Cities,
1929, 1931, 1933, and 1934
Year number of Cities Average Hourly
Covered Wage Rate
1929 107 $1.31
IS 31 121 1.30
1933 113 1.07
1934 115 1.17
Source: Builders' Association, Annual report: "Wage Rates per Hour
'For Building Trades in the principal Cities."
Union Wage Scales
Union scales of hourly wage rates, as reported by the Bureau of Labor
Statistics, for plumbers in ten leading cities are presented in Table VI.
These figures indicate that the greatest reduction in hourly rates dur-
ing the sis-year period shown occurred in 1932, with some further decreases
following in 1953. The 1934 rates were about the same as, or slightly
higher than, the rates for 1933.
8644
-9-
TABLE VI
Union Scales of Hourly Wage Rates for plumbers in
10 important Cities, 1929-1934
Rates
Per Hour
(Dollars)
City
1929
1930
1931
1932
1933
1934
Baltimore
1.375
1.375
1.500
1 . 500
1.000
1.100
Boston
1.375
1.500
1.500
1.250
1.250
1.250
Chi cago
1.625
1.625
1.700
1.375
1.375
1.375
Denver
1.375
1.375
1.375
1.188
1.000
1.000
Los Angeles
1.125
1.125
1.125
1.125
1.125
1.125
New Orleans
1.050
1.050
1.050
1.050
1.053
1.050
New York
1.500
1.650
1.650
1.400
1.500
1.500
Philadelphia
1.150
1.250
1.250
1.040
1.040
1.150
St . Loui s
1.625
1.625
1.625
l.§25
1.438
1.438
San Francisco
1.250
1.250
1.250
1.250
1.250
1.100
Source: Bureau
of Labor
Statist
ics, Mor
ithly Labo
r Review
( June ,
1935)
Union Scales of Hours per Week
Table VII, below, shows the union scales of hours per week in ten
cities, as reported by the Bureau of Labor Statistics, and indicates a
general reduction during the last few years of hours per week for union
plumbers. In 1929, there were union agreements in eight of the ten im-
portant cities requiring a 44 hour week, and in two cities a 40 hour week
was specified. By 1934, a 40 hour week was in effect for union plumbers
in all of the cities except Chicago, where the scale of 44 hours was con-
tinued, and in Philadelphia, where 35 hours per week was specified.
TAELS VII
Union Scales of Hours for Plumbers in 10 Important
Cities, 1929-1954
W*tk
Hours Per
City
1929
1930
1931
1932
1933
1934
Baltimore
Boston
Chicago
Denver
Los Angeles
New Orleans
New York
Philadelphia
St . Loui s
San Francisco
40
44
44
44
44
44
44
44
40
44
40
40
44
40
44
44
40
40
40
40
40
40
44
40
40
44
40
40
40
40
40
40
44
40
40
44
40
40
40
40
40
40
44
40
40
44
40
40
40
40
40
40
44
40
40
40
40
35
40
40
Source:
8644
Bureau of Labor Statistics, Monthly Labor Review (June, 1935)
p. 1559.
-10-
Average Kours Worked Fer Year
Since plumbing work is done on an hourly rather than a weekly "basis,
the best available measure of the period actually worked per year is the
average number of hours worked. The Research and planning Division, NRA,
has estimated the average number of hours worked in 1929 for a few important
regions. These figures, which are presented in Table VIII below, were de-
rived by dividing the average annual earnings by the average hourly wage
rate. Assuming a 44-hour week for all regions, these data would indicate
a range of weeks worked per year from approximately 21.5 for the Gary region
to about 30 for the Denver region.
TABLE VIII
Estimated Average Number of Hours Worked per Year, by Selected Regions, 1929
_ . Average Number of
11651011 Hours Per Year
Denver, Colorado 1,328
Buffalo, New York 1,185
Gary, Indiana 947
Louisville, Kentucky 960
Galveston, Texas 1,000
Birmingham, Alabama 1,023
Source: NRA, Research and planning Division, compiled from
"area agreement" data.
Child Labor
Child labor is not an important problem in the Industry. According to
the Census of Occupations, there were 1,«98 plumbers', gas, and steamfitters1
apprentices reporting themselves as belonging to the Building Industry who
were between the ages of 10 and 17 years in 1930. 1/
Number of plumbers by principal States
Census of Occupations data have been used to show the distribution of
wage earners in the principal states. (See Table IX, below.) Since plumbers
are not classified separately, but combined with gas aud steamfitters, the
number of plumbers has been estimated for the principal states by assuming
that 65 per cent of the total reported were plumbers, as indicated by the
membership of local unions of plumbers and steamfitters. 2/ As already
indicated, these estimates include the plumbers in all manufacturing and
mechanical industries, rather than in the Building Industry only, and tend
toward exaggeration. These figures do not apply to the number of persons
actually employed, but apply rather to the number of persons reporting
themselves belonging, by occupation, to the plumbing trade.
1/ Census of Population, 1930, Occupation Statistics, "Gainful Workers by
Industry and Occupation."
2_/ Regarding this percentage, see above, p. 6.
8644
-11-
The data in Table IX show that in 1930 about 66 per cent of the total
estimated number of plumbers resided in the ten leading states, with approx-
imately 17 per cent in New York and 10 per cent in Pennsylvania.
TABLE IX
Total Number of Plumbers and Gas and Steamfitters and Estimated
Number of Plumbers in Manufacturing and Mechanical Industries,
by Principal States, 1930
State
Total Number of Plumbers
and Gas and Steamfitters
Estimated Number
of Plumbers
Number
Per Cent
of Total
154,578
100.0
8,713
5.6
3,496
2.3
10,908
7.1
7,806
5.1
7,235
4.7
10,703
6.9
26,785
17.3
9,069
5.9
14,750
9,5
3,091
2.0
U. S. Total 237,813
California 13,405
Connecticut 5,379
Illinois 16,781
Massachusetts 12,009
Michigan 11,131
Ne\7 Jersey 16,466
New York 41,207
Ohio 13,952
Pennsylvania 22,692
Wisconsin 4,755
Total for 10 States 157,777
Total for Other States 80,036
102,574
52,004
66.4
33.6
Source; Census of Population, 1930, Occupations, "oy States for total num-
ber of plumbers and gas and steamfitters; number of plumbers
estimated at 65 per cent of the total on the basis of membership
of local unions of plumbers and steamfitters.
Estimated Total Annual Wages Paid by Principal States
The method previously used in this report in estimating total wages
paid in both groups of establishments in the United States as a whole has
been applied in estimating wages paid in the ten principal states. The
data are given in Table X, below. These wage figures include wages paid
in heating contracting work, which was not covered ^y the Code, but do
not include wages paid to plumbing contractors for their own work.
Approximately 73 per cent of the total annual wages were paid in ten
states.
8644
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TABLE X
Estimated Wages Paid, by principal States, 1929 a/
Estimated Total Wages
State Amount Per Cent
(000' s) of Total
U. S. Total $144,028 100.0
California
Connecticut
Illinois
Massachusetts
Michigan
New Jersey
New York
Ohio
Pennsylvania
Wisconsin
Total for 10 states
Total for other states
Source; Census report, Construction Industry, 1929, Sub-contractors,
"plumbing," and "Plumbing and Keating, Combined."
a/ Estimated by computing the percentage relationship of reported
total wages to reported net value of business for the "$25,000 and
over" group of establishments in each of the ten states, and apply-
ing this percentage to the estimated total value of business for all
reporting plumbing and plumbing and heating establishments.
Relation of Labor Cost to Value of Business
In the 2,808 plumbing contracting establishments reporting wage data in
the Census of Construction, wages represented, on the average, approximately
26 per cent of the total value of business, and in the 1,218 plumbing and
heating contracting establishments, 24.5 per cent. (See Table XI, below.)
E. L. Elentje of the former Code Authority has stated that labor costs
represent about 33 per cent of tlie cost of new work and about 31 per cent of
the cost of remodeling work. These averages are not contradictory to the
Census of Construction averages, since it appears that the Code Authority
figures are based primarily on the cost to the contractor, rather than on the
cost to the ourchaser or ultimate consumer.
9,071
6.3
4,775
3.3
12,525
8.7
7,534
5.2
7,719
5.4
9,247
6.4
29,972
20.8
8,039
5.6
11,736
8.1
4,472
3.2
05,090
73.0
38.938
27.0
8644
-13-
TABLE XI
Value of Business Compared with Annual Wages, 1929 a/
Kind of Contractor
Number of Value
Establish- of Amount
ments Business (000' s)
Reporting (OOC's)
Annual Wages
per Cent
of Value
of Business
Plumbing
Plumbing and Heating,
Combined
2,808 $256,834 $66,393 25.9
1,218 93,738 22,922 24.5
Source; Census report, Construction Industry, 1929, Subcontractors,
"Plumbing," and "plumbing and Heating, Combined."
a/ The reporting concerns fell in the group having a value of
business of $25,000 and over in 1929.
8644
-14-
Chapter III
MATERIALS
Materials Used "by the Industry
The principal materials used "by the Industry are mainly finished prod-
ucts rather than raw or semi-processed materials. The principal materials
used are as follows:
(1) Enameled iron, vitreous china, and porcelain plumbing fixtures.
(2) Brass, lead, copier, tin, wrought iron, vitrified and steel
pipe.
(3) Cast and spun trass accessories.
Expenditures for Materials
According to the Census of Construction, the total cost of materials
for the 4,026 plumbin? and plumbing and heating contractors in the" $25,000
and over" group amounted to $134,357,000 in 1920.
An analysis of the cost of materials purchased and used by plumbing con-
tractors is presented in Table XI I. Although t^o Census groups, "plumbing,"
and "plumbing and heating," should be combined to obtain coverage as broad as
that of the Code, data are presented here for the first group only because
of the large proportion of materials used by members of the latter group in
operations that were not actually covered by the Code.
The table indicates that equipment, or fixtures, represented approxi-
mately 80 per cent of the total cost of materials; plumbing and gas fitting
equipment accounting for approximately 65 per cent; and heating and ventila-
ting equipment for about 15 per cent.
8644
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TABLE XII
Cost of Materials Furnished and Used,
By Principal Product Groups, 1929 a/
Product Grottos
Total Cost of all Materials
Plumbing and Gas Fitting Equipment
Heating and Ventilating Equipment
Pine: Cast Iron, Sheet, and Tube Steel
Roofing and Sheet Metal
Electrical Appliances and Supplies
Pipe: Drain Tile, Vitrified, Concrete
Textiles and Caulking Materials
Lumber, Hough and Finished
Tile, Facing, and Terra Cotta
Composition Board
Cast Iron, Excluding Pine
Cost of Materials Distributed "by Kind
Cost of All Other Materials
Cost of Materials
Amount
$135,603,332
87,363,345
20,463,654
1,920,754
301,595
619,962
596,345
125,060
98,746
58,343
55,821
54,948
112,663,575
22,939,757
Per Cent
of Total
100.00
64.79
15.10
1.42
.59
.46
.44
.09
.07
.04
.04
.04
83,08
16.92
Source: Census re-oort, Construction IndustryT 1929. Subcontractors,
"Plumbing,"
a/ The reporting firms fell in the grotip having a value of business
of $25,000 and over in 1929.
Sources of Production of Plumbing: Fixtures and Accessories
Data from the Census of Manufactures, presented in Tables XI II and XIV
below, show the principal states for the production of the chief fixtures
and accessories used by the Industry. It is reasonable to assume that prac-
tically all of the -plumbing fixtures manufactured are used by the Plumbing
Contracting Industry or by industrial concerns and property owners making
their own repairs.
Production of enameled iron plumbing fixtures is concentrated in
Pennsylvania, California, and Ohio. Pennsylvania produced approximately
25 per cent of the bath-tubs, 25 per cent of the lavatories, and 22 per cent
of the sinks manufactured in 1929.
8644
-16-
TABLE XIII
Volume and Value of Production of the Chief Enameled Iron
Plumbing Fixtures, by principal States, 1929
Bath- Tub s Lavoratories Sinks
State Number Value Number Value Number Value
U. S. Total 943,905 $21,355,379 1,116,347 $3,050,040 1,210,615 $12,872,142
California 81,438 2,272,733 111,754 831,159 119,708 649,366
Ohio 43,486 1,029,282 59,745 749,594 94,971 909,401
Pennsylvania 243,430 5,470,566 275,735 1,832,265 268,858 2,785,614
Total for
3 States 368,354 8,772,581 447,234 3,413,018 483,537 4,344,381
Total for •
Other
States 575,551 12,582,798 669,615 4.637,022 727,078 8,527,761
Source: Census of Manufactures. 1929. Vol. II, "Plumbers Supplies, " Data do
not include -ornduction of those establishments whose products were
valued at less than $5,000 in 1929.
Table XIV below, indicates that the oroduction of plumbers' brass goods
and miscellaneous supplies is largely concentrated in eight states which, in
1929, oroduced about 74 per cent of the total value of brass valves, faucets,
and spigots; for about 89 -oer cent of -clumbers' other brass goods; and for
atroroximately 65 t>er cent of other clumbers' supplies.
8644
-17-
TABLS XIV
Value of Production of Plumbers' Brass Goods and Other
Plumbers' Supplies, By Principal States, 1929
Brass Val
.V9S,
Other Plumb
ers'
Other Plumbi
3rs'
Faucets,
and
Brass Goods
a/
Supplies
Spigot
;s
State
Per
Per
Per
Value
Cent
Value
Cent
Value
Cent
(000' s)
of
(000' s)
of
(000' s)
of
Total
Total
Total
U. S. Total $32,834
100.0
$32,772
100.0
$20 , 440
100.0
Connecticut
1,987
6.1
5,314
17.7
504
2,5
Illinois
6,006
18.3
8,548
26.1
1,477
7,2
Michigan
2,700
8.2
4,189
12.8
2,377
11,6
New Jersey
838
2.6
942
2.9
1,789
8.8
New York
537
1.6
2,949
9.0
3,168
15.5
Ohio
9,283
28.3
2,689
8.2
1,534
7.5
Pennsylvania
847
2.5
2,588
7.9
1,943
9.5
Wisconsin
2,188
6.7
1,331
4.1
431
2.1
Total for
8 States
24,386
74.3
29,050
88.7
13,223
64.7
Total for
Other
States
8,448
25.7
3,722
11.3
7,217
35.3
Source: Census of Manufactures, 1929
, Vol. II, "
Plumbers
1 Supplies."
Data do not include production of those establishments whose
products were valued at less than $5,000 in 1929.
a/ Includes brass valves, faucets, and spigots not reported separately.
The tools used by the Industry consist -orimarily of machine hand tools
which are produced largely in Connecticut, Illinois, Michigan, Ohio, Rhode
Island, and Wisconsin. 1/
Relation of Cost of Materials to Value of Business
In the 2,808 plumbing contracting establishments in the "$25,000 and
over group" reporting to the Census of Construction in 1929, the cost of
materials represented, on the average, approximately 52.8 ner cent of the
total value of business, and in the 1,218 plumbing and heating contracting
establishments in the same group, about 52.0 per cent.
1/ Census of Manufactures. 1929. Vol. II, "Machine Tool Accessories."
8644
-13-
TABLE XV
Value of Business and Cost of Materials, 1929 27
Type of Contracting Number of Cost of Materials
Establishment Establishments Value of
Reoorting Business Amount Per Cent of
(000 «s) (000' s) Total Value
of Business
Plumbing 2,808 $256,834 $135,603 52.8
Plumbing and Heating, Combined 1,218 93,738 48,754 52.0
Source: Census reoort, Construction Industry. 1929. Subcontractors, "Plumb-
ing", and "Plumbing and Heating, Combined."
a/ The reporting establishments fell in the group doing a business of
$25,000 and over in 1929.
8644
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Chapter IV
PRODUCT I OK AND DISTRIBUTION
Estimated Value of Business by principal States
The "mroducts" of the Industry are represented by contracts made and
performed and the best available measure of total production is the value of
business transacted. The value of business transacted by plumbing, and
plumbing and heating contractors in ten states is shorm in Table XVI below.
These ten states accounted for approximately 74 per cent of the total
value of business performed ~by the establishments in all establishments
combined. In 1929, New York, Pennsylvania, Illinois, and California account-
ed for about 45 per cent of the total.
TABLE XVI
Estimated Value of Business, by Principal States, 1929
(in thousands)
Estinated Total $25,000 and Over Group Less than $25,000 C-roup
State Per Cent Value Per Cent Value a/
Value of Total (reported) of Total (estimated)
U. S. Total $555,003 100.0 $550,572 100.0 $205,521
California
39,097
7.0
26,388
7.7
12,209
Connecticut
17,750
o« 2
o, 5oo
2.4
9,162
Illinois
42,029
7.6
30,681
8.8
11,348
Massachusetts
27,005
4.9
16,716
4.8
10,289
Michigan
32,570
5.9
22,295
6.4
10,275
New Jersey
35,373
6.1
16,272
4.6
17,601
Hew York
111,420
20.0
82,454
23.5
28,996
Ohio
29,884
5.4
17,251
4.9
12,633
Pennsylvania
60,807
10.9
37,308
10.6
23,499
Wisconsin
13,478
3.3
12,595
3.6
5,883
Total for 10
States 412,913 74.3 271,048 77.3 141,895
Total for
Other
States 143, 18C 25.7 79,524 22.7 63,626
Source; Census report, Construction Industry, 1929, Subcontractors, "Plumb-
ing", and "Plumbing and Heating, Combined."
a/ Estimated by multiplying the average value of business per reporting
establishment by the total number of establishments.
3644
-20-
Interstate Nature of plumbing Contracts
The distributive function performed by the Industry is that of supply-
ing goods and services to the ultimate consumer. While shipment of goods
by plumbing contractors from one state to another is not an important phase
of the Industry, contractors may receive a large portion of their plumbing
fixtures and supplies from establishments outside the contractors' home
states.
In addition, contracts may be performed in one state by contractors
located in other states. Data from the Census of Construction, shown in
Table XVII, below, indicate that approximately 97 per cent of the total
business reported, by location, was performed within the contractor's home
state and about 3 per cent was performed outside his home state. The pro-
portion done outside the home state varies among the ten leading states,
ranging from 0,2 per cent in Michigan to 4.6 per cent in Massachusetts.
TABLE 171 I
Value of Business Performed in Home State and Outside
Home State, By Principal States, 1929 a/
Humber
Value of
Business
of
E s tab-
lishnents
(in thousands
State
Total
In Home
State
Outside
Home State
Per Cent
Per Cent
Reporting
Amount
Of Total
Amount
of Total
U. S. Total
3,937
$33C,568
$321,283
97.2
$9,285
2.8
California
247
25,087
24, 523
97.8
564
2.2
Connecticut
133
8,272
8,178
98.9
94
1.1
Illinois
285
28,333
28,149
99.4
184
0.6
Massachusetts
i 226
15,907
15,171
95.4
736
4.6
Michigan
227
22,014
21,963
99.8
51
0.2
Hew Jersey
238
15,936
15,881
99.7
55
0.3
Hew York
674
73,577
76,499
97.2
2,178
2.8
Ohio
236
16,751
16,592
99.1
159
0.9
Pennsylvania
313
25,683
25,078
97.6
605
2.4
Wisconsin
169
10,759
10,703
99.5
56
0.5
Total for 1C
1
States
2,748
247,419
242,737
98.1
4,682
1.9
Total for
Other States 1,189
83,149 78,546
94.5
4, 603
5.5
Source; Census report, Construction Industry, 1929, Subcontractors, "Plumb-
ing", and "Plumbing and Heating, Combined."
a/
8644
The reporting establishments fell in the group having a value of
business of $25,000 and over in 1929.
-21-
Advertising
The Plumbing Contracting Industry itself participates in advertising
only locally. However, the Industry shares in the "benefits derived from the
national advertising of manufacturers of plumbing fixtures.
Shifts in Centers of Production
It would be difficult to determine to what extent, if any, the centers
of the Industry have shifted since 1929. Changes of this nature are taking
place more or less constantly and usually accompany movements in the general
building industry and follow the adoption of higher standards of living.
Productive Capacity
- j. • w
The productive capacity of the Industry is almost without limitations.
Due to the limited amount of capital necessary to enter the Industry, the
number of members may increase or decrease very rapidly. The capacity of
the Industry has ever been taxed throughout the country as a whole, although
capacity may have been reached at times within restricted areas.
8644
-22-
Chapter V
TRADE PRACTICES
Unfair Trade Practices
8644
The unfair trade practices prevalent in the Industry, which were
diminished rather than eliminated under the Code, are quite similar to
those found in the Construction Industry as a whole and in its other
divisions.
These practices are mainly: bid-shopping, bid-peddling, substitu-
tion of materials, selling goods or rendering services below cost, lumping
or subletting of labor contracts, enticing employees from competitors, and
inducing the abrogation of existing contracts. The most important of these
are discussed below.
3 id- Shopping. - Bid-shopping is the practice of seeking, by an award-
ing authority, of a bid lower than any of those submitted by the original
bidders. Other contractors are contacted or the original bidders are re-
quested to lower their bids, or both.
Bid-Peddlin^r. - 3id-peddling is the practice of attempting to secure
a contract by reducing the original bid. The bidder, having ascertained
that his submitted bid was not the lowest figure, reduces the original bid.
Substitution of Materials. - This is the practice of substituting
materials less costly, and usually of inferior quality, than those called
for in the contract or agreed upon.
Selling Goods or Rendering Services Below Cost. - This practice
tends to be cumulative in effect. In his attempt to realize absolute costs
or a minimum of -orofit, the contractor turns his attention to the costs of
materials and labor, substituting inferior materials and reducing wages and
lengthening hours.
Lumping or Sub-Letting of Labor Contracts. - This practice is engaged
in as a subterfuge for reducing labor costs. The contract for labor serv-
ices is transferred from one who is qualified by experience to bid to one
who is not qualified to bid, and through bargaining, labor rates are reduced
to a minimum.
Spread of Unfair Trade Practices From One Area to Another
It would be difficult to cite specific examples where unfair trade
practices originating in one area spread to other areas. But unfair trade
practices are so universal and the methods so similar, that it seems evident
that whenever such practices have originated they have permeated the Industry.
According to the Census of Construction, approximately 16 per cent of the
total value of business, reported by location, was performed outside the
contractor's home city. 1/ The fact that contractors operate outside their
home community enhances the spread of unfair practices.
1/ Census report, Construction Industry, 1929, Table 3, Subcontractors,
"Plumbing," and "Plumbing and Heating, Combined." The reporting establish-
ments fell in the group having a value of business of $25,000 and over in
1929.
-23-
Effect of Prices of Ind.ivid.-ual Members Upon the national Price
Structure.
Due to the relative ease with which a member of the Industry may
operate vdthin a more or less unlimited area, the prices of the lorrest
bidder tend to determine prices throughout the country.
8644
-24-
Chanter VI
GENERAIi INFORMATION
History of the Industry
As recently as 1874 the plumbing processes in the United States were
simple and to a high degree ineffective. House drains consisted of "blue-
stone flags laid on earth or rock foundations; the brick sides, covered with
loose bluestone flags, formed a square or oblong box. Such drains were not
satisfactory, frequently serving as breeding places for rats and vermin and
often filling the house with sewer gas.
During the years immediately following 1874, in which year the vent
was first used, considerable progress was made as evidenced by the fact that
the trap, the vent, and other improvements were developed. In 1886 an order
was issued in New York City requiring that "all future house drains in the
interior of buildings must be of extra heavy cast iron pipe and all soil,
waste, and vent piping and fittings used for rising lines and branches of
soil waste, and vent piping must be of heavy cast iron steel or wrought iron.
As governmental divisions and subdivisions have realized the importance of
efficient plumbing in relation to health and sanitation, and have legislated
to that end, the Industry has grown and developed.
History of the Industry's Labor Organizations
It was during the period of rapid development that plumber employers
began to organize. The National Association of Master Plumbers was formed
in 1883. In 1912, as the result of an amalgamation of plumbers, and steam
and hot-water fitters, the United Association of Journeymen Plumbers and
Steamfitters of the United States and Canada was formed. Both organizations
have experienced a spasmodic and sporadic growth. The National Association
of Master Plumbers has affiliated with it 530 local associations, and in
1929 had a membership of 150,000. The United Association of Journeymen is
comprised of 656 locals in 46 states, and in 1929 had a membership of 65,000.
Experts
The following is a list of persons who, because of their
training and experience, may be regarded as qualified experts
in the Industry:
E. L. Flentje
Robert J. Barrett
P. W. Bonoghue
E. B. Kleine
L. J. Kruse
B. A. Mayfield
J . J . Shanahan
Geo. IT. Prank
J. Sheehan, Jr.
James Smyth
1240 Shoreham Building
1240 Shoreham Building
342 Newberry St.
329 Ludlow Ave.
6247 College Ave.
131 E. Bay St.
217 W. Freemason St.
79 Best St.
1609 Olive St.
230 N. Division St.
Washington, D. C.
Washington, D. C.
Boston, Mass.
Cincinnati, Ohio
Oakland, Calif.
Jacksonville, Fla»
Norfolk, Va.
Buffalo, N. Y.
St. Louis, Mo.
San Antonio, Texas.
8644#
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