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Full text of "Investigation of concentration of economic power; monograph no. 1[-43]"

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[J. .S. SUFr Or Docm>aiNTS 



76th CongresB"! SBNATB COMMITTBB PRINT 
Sd Session J 



INVESTIGATION OF CONCENTRATION 
OF ECONOMIC POWER 



TEMPOKAEY NATIONAL ECONOMIC 
COMMITTEE 

A STUDY MADE FOR THE TEMPORARY NATIONAL 

ECONOMIC COMMITTEE, SEVENTY-SIXTH CONGRESS, 

THIRD SESSION, PURSUANT TO PUBLIC RESOLUTION 

NO. 113 (SEVENTY-FIFTH CONGRESS), AUTHORIZING 

AND DIRECTING A SELECT COMMITTEE TO MAKE A 

FULL AND COMPLETE STUDY AND INVESTIGATION 

WITH RESPECT TO THE CONCENTRATION OF ECONOMIC 

POWER IN, AND FINANCIAL CONTROL OVER, 

PRODUCTION AND DISTRIBUTION 

OF GOODS AND SERVICES 



MONOGRAPH No. 10 
INDUSTRIAL CONCENTRATION AND TARIFFS 



Printed for the use of the 
Temporary National Economic Committee 




UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON ! 1941 



^^3d Sesskm^^l SENATE COMMITTEE PRINT 



INVESTIGATION OF CONCENTRATION 
OF ECONOMIC POWER 



TEMPOEAEY NATIONAL ECONOMIC 
COMMITTEE 

A STUDY MADE FOR THE TEMPORARY NATIONAL 

ECONOMIC COMMITTEE, SEVENTY-SIXTH CONGRESS, 

THIRD SESSION, PURSUANT TO PUBLIC RESOLUTION 

NO. 113 (SEVENTY-FIFTH CONGRESS), AUTHORIZING 

AND DIRECTING A SELECT COMMITTEE TO MAKE A 

FULL AND COMPLETE STUDY AND INVESTIGATION 

WITH RESPECT TO THE CONCENTRATION OF ECONOMIC 

POWER IN, AND FINANCIAL CONTROL OVER, 

PRODUCTION AND DISTRIBUTION 

OF GOODS AND SERVICES 



MONOGRAPH No. 10 
INDUSTRIAL CONCENTRATION AND TARIFFS 



Printed for the use of the 
Temporary National Economic Committee 






UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1941 



FEB 2 1942 '''''' 



y/i t/^^i 



TEMPORARY NATIONAL ECONOMIC COMMITTEE 

(Created pursuant to Public Res. 113, 75th Cong.) 

JOSEPH C. O'MAHONEY, Senator from Wyoming, Chairman 

HATTON W. SUMNERS, Representative from Texas, Vice Chairman 

WILLIAM H. KING, Senator from Utah 

WALLACE H. WHITE, Jr., Senator from Maine 

CLYDE WILLIAMS, Representative from Missouri 

B. CARROLL REECE, Representative from Tennessee 

THURMAN W. ARNOLD, Assistant Attorney General 

♦WENDELL BERGE, Special Assistant to the Attorney General 

Representing the Department of Justice 

JEROME N. FRANK, Chairman 

♦SUMNER T. PIKE, Commissioner 

Representing the Securities and Exchange Commission 

GARLAND S. FERGUSON, Commissioner 

•EWIN L. DAVIS, Chairman 

Representing the Federal Trade Commission 

ISADOR LUBIN, Commissioner of Labor Statistics 

*A. FORD HINRICHS, Chief Economist, Bureau of Labor Statistics 

Representing the Department of Labor 

JOSEPH J. O'CONNELL, Jr., Special Assistant to the General Counsel 

*CHARLES L. KADES, Special Assistant to the General Counsel 

Representing the Department of the Treasury 

Representing the Department of Commerce 

LEON HENDERSON, Economic Coordinator 
DEWEY ANDERSON, Executive Secretary 
THEODORE J. KREPS, Economic Adviser 



Monograph No. 10 
INDUSTRIAL CONCENTRATION AND TARIFFS 

CLIFFORD L. JAMFS 



Tl\. 



Chargecl'to-Gittuii acsl. 
with Supt<>f ^P^w^*^ 



ACKNOWLEDGMENT 

This monograph was written by 

CLIFFORD L. JAMES 

Associate Projessor of Economics 
Ohio State University 

Assisted by 

EDWARD C. WELSH 

Instructor in Economics 
Ohio State University 

and 

GORDON ARNESON 

Junior Economist, Temporary National Economic Committee 

The Temporary National Economic Committee is greatly indebted 
to these authors for this contribution to the literature of the subject 
under review. 

The status of the materials in this volume is precisely the same as that 
of other carefully prepared testimony when given by individual witnesses; 
it is information submitted for Committee deliberation. No matter what 
the official capacity of the witness or author may be, the publication of 
his testimony, report, or monograph by the Committee in no way signifies 
nor implies assent to, or approval of, any of the facts, opinions, or recom- 
mendations, nor acceptance thereof in whole or in part by the members 
of the Temporary National Economic Committee, individually or 
collectively. Sole and undivided responsibility for every statement in 
such testimony, reports, or monographs rests entirely upon the respective 
authors. 

(Signed) Joseph C. O'Mahonet, 
Chairman, Temporary National Economic Committee. 



TABLE OF CONTENTS 



Page 

Letter of transmittal ix 

CHAPTER I 

Introduction and Summary of Findings _ 1 

1. Concentration of economic power 1 

2. Industrial concentration and tariffs 1 

3. Reduction or removal of tariffs and industrial concentration 4 

4. Plan of investigation 5 

5. Summary of findings 5 

CHAPTER II 

Sample Study of Industrial Concentration and Tariffs 13 

1 . Introduction 13 

2. Foods and related products 14 

3. Textiles and allied products 16 

4. Wood and paper products 17 

5. Chemicals and allied products 18 

6. Rubber and leather products 20 

7. Stone, clay, and glass products 21 

8. Nonferrous metals and products 22 

9. Iron and steel products 23 

10. Agricultural and automotive machinery and related products 23 

11. Machine tools and equipment 24 

12. Electrical machinery, equipment, and related products 25 

13. Miscellaneous products 26 

14. Summary 27 

CHAPTER III 

The Gypsum Industry 29 

1 . Crude gypsum and products of gypsum 29 

2. Tariff history 29 

3. Domestic production, imports, and exports 30 

4. Trends in concentration 33 

5. Monopoly and tariff protection: An evaluation of existing con- 

ditions, suggested changeis, and their probable effects 41 

CHAPTER IV 

The Flat Glass Industry 43 

1. Major fiat-glass products 43 

2. Tariff history 44 

3. Domestic production, imports, and exports 47 

4. Trends in concentration 50 

5. Industrial concentration and tariff protection: An evaluation of 

existing conditions, suggested changes, and their probable effects. 55 

CHAPTER v 

The Borates Industry 59 

1. Borates and their uses 59 

2. Tariff history 59 

3. Domestic production, imports, and exports 60 

4. Trends in concentration 62 

5. Monopoly and tariff protection: An evaluation of existing con- 

ditions, suggested changes, and their probable effects 64 



VI TABLE OF CONTENTS 

CHAPTER VI 

Page 

Softwood Lumber of the United States and the Trade Agreements 67 

1 . Introduction 67 

2. Tariff history 68 

3. Production of softwood lumber in the United States 70 

4. Imports of softwood lumber 71 

5. Exports of softwood lumber, United States 73 

6. Softwood lumber: Canadian exports 74 

7. Triangular softwood lumber trade balance, 1939 75 

8. Summary statements 76 

CHAPTER vti 

Consumers' Cost From Import Restrictions: 

Sugar and Rayon Yarn 79 

1. Problem of estimating consumers' cost 79 

2. Sugar: Production, imports, and exports 80 

3. Sugar: Recent duties and quotas 81 

4. Consumers' cost of restrictions on sugar imports 82 

5. Rayon yarn: Consumers' cost of restrictions on imports 86 

6. Summary 89 

APPENDIX I 

Table 1. Sample of industrial concentration, 1,807 products of the census 

of 1937, by census groups 91 

Table 2. Sample of industrial concentration, 1,807 products of the census 
of 1937, by census groups and according to duty status and 

tariff effects in 1937 92 

Table 9. Sample of industrial concentration, 1,807 products of the census 

of 1937, by census groups and according to tariff effects in 1937. 95 

appendix II 

Schedules of information for each product included in the sample of 317 

products 101 

Group A. Foods and related products 101 

Group B. Textiles and allied products 114 

Group C. Wood and paper products 142 

Group D. Chemicals and allied products 154 

Group E. Rubber and leather products 186 

Group F. Stone, clay, and glass products 193 

Group G. Nonferrous metals and products 212 

Group H. Iron and steel products 219 

Group I. Agricultural and automotive machinery and related products. 238 

Group J. Machine tools and equipment 247 

Group K. Electrical machinery, equipment, and related products — 265 

Group L. Miscellaneous products 296 

Index 321 



SCHEDULE OF TABLES 



TABLE Paff« 

1. Sample of industrial concentration, 1,807 products of the census of 

1937 6 

2. Sample of industrial concentration, 1,807 products of the census of 

1937 according to duty status and tariff effects in 1937 8 

3. Sample of industrial concentration, 1,807 products of the census of 

1937 according to tariff effects in 1937 9 

4. Sample of high industrial concentration, 317 products mainly of the 

census of 1937 according to duty status in 1937 10 

5. Sample of high industrial concentration, 317 products mainly of the 

census of 1937, according to effectiveness of tariffs in 1937 10 

6. Sample of high industrial concentration, 18 food products of the census 

of 1937, according to effectiveness of tariffs in 1937 14 

7. Sample of high industrial concentration, 38 textile products mainly 

of the census of 1937, according to effectiveness of tariffs in 1937. _ 16 

8. Sample of high industrial concentration, 16 wood and paper products 

mainly of the census of 1937, according to effectiveness of tariffs in 

1937 17 

9. Sample of high industrial concentration, 49 chemical products mainly 

of the census of 1937, according to effectiveness of tariffs in 1937 18 

10. Sample of high industrial concentration, 9 rubber and leather prod- 

ucts of the census of 1937, according to effectiveness of tariffs in 

1937 20 

11. Sample of high industrial concentration, 27 stone, clay, and glass prod- 

ucts mainly of the census of 1937, according to effectiveness of 
tariffs in 1937 22 

12. Sample of high industrial concentration, 10 nonferrous products 

mainly of the census of 1937, according to effectiveness of tariffs in 

1937 23 

13. Sample of high industrial concentration, 27 iron and steel products 

of the census of 1937, according to effectiveness of tariffs in 1937- _ 23 

14. Sample of high industrial concentration, 13 agricultural and automo- 

tive machinerv products of the census of 1937, according to effective- 
ness of tariffs 'in 1937 24 

15. Sample of high industrial concentration, 28 machine tool products of 

the census of 1937, according to effectiveness of tariffs in 1937 25 

16. Sample of high industrial concentration, 46 electrical products mainly 

of the census of 1937, according to effectiveness of tariffs in 1937. - 26 

17. Sample of high industrial concentration, 36 miscellaneous products 

mainly of the census of 1937, according to effectiveness of tariffs in 

1937 27 

18 (summary). Sample of high industrial concentration, 317 products 
mainly of the census of 1937, according to effectiveness 
of tariffs in 1937 27 

19. Gyspum building products (except Keene's cement) sold in the United 

States, 1937 and 1938 32 

20. Gypsum building products; average unit values, f. o. b. and delivered 

prices to U. S. Government in District of Columbia, 1930-38 40 

21. Plate glass: Comparison of tariff duties, 1913-30 44 

22. Plate glass: Quoted prices, f. o. b. plants, for glazing quality, cut 

sizes, in specified years 51 

23. Common window glass: Average quoted wholesale prices, f. o. b. 

plant, per box containing 50 square feet of glass, in specified years. _ 52 

24. Rolled glass and polished wire glass: Manufacturers' quoted prices, 

f. o. b. plant, for representative kinds in stock sheets, in specified 
years 53 

VII 



VIII SCHEDULE OF TABLES 

TABLE Page 

25. Sawed softwood timber and lumber: United States production and 

average unit values at the mill by species, 1931-37 70 

26. Sawed softwood lumber and timber: Comparison of United States 

production, imports and exports 72 

27. Sawed softwood lumber and timber: United States imports for con- 

sumption by principal species, 1931-39 73 

28. Sawed softwood lumber and timber: United States total exports and 

exports to the United Kingdom, 1933 to 1939 74 

29. Sawed softwood lumber and timber: Canadian total exports and ex- 

ports to the United Kingdom and the United States 75 

30. Sugar: United States production, imports and exports, in specified 

years, 1929 to 1938 80 

31. Sugar: United States tariff rates since 1913 82 

32. Consumers' costs of restrictions on sugar imports in specified years, 

1929to 1939 83 

33. Cuban gains under sugar quotas 85 

34. Consumers' cost of duty restrictions on imports of rayon yarn 88 



LETTER OF TRANSMITTAL 



Hon. Joseph C. O'Mahoney, 

Chairman, Temporary National Economic Committee, 

Washington, D. C. 

My Dear Senator: I have the honor to transmit herewith a study 
by Dr. Chfford James on Industrial Concentration and Tariffs. As is 
well-known, the tariff is a tax — a tax levied against all consumers. A 
tariff represents Government interference with the normal processes of 
international trade. A tariff is a burden put upon foreign com- 
petitors so that the amount of competition at home may be less. If 
high enough a tariff protects domestic industry, that is, it eliminates 
foreign competition. Under those circumstances, "the consumer pays 
the tax in precisely the same w^ay as if the article continued to be 
imported — that is in the shape of higher prices, only, there is in tliis 
case no revenue to the public treasury. The extra price stands for 
so much bonus to domestic producers to enable them to maintain 
themselves in a disadvantageous industry. And it represents so much 
national loss." ^ 

More than 100 years ago Henry Clay and his followers called the 
tariff system "the American plan." That fact is frequently overlooked. 
Tariffs represent national economic planning at work — planning done 
in a completely uncoordinated manner so far as the Nation as a whole 
is concerned, planning carried out by individual industries, each seeking 
its own self-interest, planning which uses the coercive powers of 
government to exclude competition. Needless to say, such planning 
is most efficiently done by completely organized industries. For this 
reason an eminent American businessman, Mr. Havemeyer of the 
American Sugar Refining Corporation, once called the tariff the 
"mother of the trusts." 

But "trusts" are also vigorous proponents of the tariff. Thus in a 
considerable range of enterprise less than half a dozen companies have 
grown to such size that they produce two-thirds to three-fourths of 
total output, yet by forceful intervention of government to the detri- 
ment of the great masses of its citizens, they are protected like infants, 
presumably on the ground that despite their control over the domestic 
market they are not vigorous enough to hold their own in competition 
with foreigners. For governments to interfere with the welfare of 
their citizens in behalf of monopolies seems an anomaly . The study 
undertaken by Dr. James represents one of the most important fields 
calling for painstaking research. 

The analysis contained in chapter VI on Softwood Lumber and Trade 
Agreements was made at the verbal request of Senator Holman, 
which request was granted by the chairman of the Temporary National 
Economic Committee. It raises a question which obviously goes 

1 F. W. Taussig, Principles of Economics (New York: 1939) vol. 1, p. 520. 



X LETTER OF TRANSMITTAL 

far beyond the scope of this study, a question well meriting extended 
treatment of its own. That question is whether the trade-agreements 
program has incidental usefulness as a device for combating monopo- 
listic or restrictive tendencies at home. The old method of tariff- 
making constituted a vehicle favorable to the creation and perpetuation 
of monopolistic tendencies.^ Since 1932 the imposition of excise taxes 
in revenue acts (disguised tariffs) has introduced another vehicle 
operating to the same effect. Where the tariff is the controlling factor, 
perhaps only through action of the Tariff Commission in administering 
the so-called flexible provisions, section 336 of the Tariff Act, and 
through the trade-agreements program can monopolistic tendencies 
be substantially mitigated, i. e., by adjusting the tariff rates downward 
wherever they appear to maintain or perpetuate private restrictive 
influences on output, prices, or market. This chapter at least raises 
such a question. Only an extended study can answer it. 

Chapter VII similarly opens up a question far exceeding the scope of 
this monograph, a question of the gravest importance well deserving 
full time and attention by the research staff of the Tariff" Commission. 
It is the problem of assessing in dollars and cents the annual cost to 
consumers, of tariffs designed to aid special groups of producers. Dr, 
James has made a study of only two commodities, sugar and rayon, 
and arrived at estimates well-corroborated by scientific studies inde- 
pendently made that the tariff in these two commodities alone prob- 
ably costs American consumers more than a quarter billion and pos- 
sibly as much as a third of a billion dollars a year. 

Air. Gordon Arneson, of the University of Minnesota, and Dr. 
Edward C. Welsh, of Ohio State University, were of vital assistance 
in the preparation of this study. In its final stages the manuscript 
was reviewed in its entirety by Dr. Edward S. Mason, professor of 
economics, Harvard University. His painstaking care and numerous 
criticisms and suggestions are hereby gratefully acknowledged. 

Respectfully submitted. 

Theodoee J. Kreps, 

Economic Adviser. 

August 26, 1940. 



* See E. E. Schattschneider, Politics, Pressures, and the Tariff (New York: 1935), especially pt. II. 



CHAPTER I 
INTRODUCTION AND SUMMARY OF FINDINGS 

1. CONCENTRATION OF ECONOMIC POWER 

The Temporary National Economic Committee was created by 
Congress for the pm^pose of investigating the concentration of eco- 
nomic power and the relation of concentration to employment, pro- 
duction, and consumption. Congress directed the committee to 
make a full and complete study of the above problem and related 
matters which were referred to in the President's message of April 29, 
1938, and to recommend to Congress legislative changes. Both 
Congress and the President included "the effect of existing tax, patent, 
and other Government policies upon competition, price levels, unem- 
ployment, profits, and consumption" within the scope of the investi- 
gation. 

An important governmental policy which affects competition, prices^ 
employment, profits, and consumption is tariff policy. When tariffs 
effectively exclude foreign sellers from the domestic market, competi- 
tion may be greatly lessened, and monopolistic practices may be 
facilitated. Tariffs and other restrictions on imports, as well as special 
legislation permitting combinations in the export trade, constitute 
part of the field assigned for investigation. Since tariffs in the history 
of the United States are the outstanding expression of governmental 
intervention in markets connected with imports and exports, the 
following report is confined primarily to a study of industrial con- 
centration and tariffs. 

2. INDUSTRIAL CONCENTRATION AND TARIFFS 

An outline of the problem will serve to clarify the procedure fol- 
lowed and the general nature of the findings. There are several indi- 
cators of monopolistic elements in industry which may be used as the 
basis for study. One is industrial concentration, that is, the supply of 
a preponderant share of the output of a given product by a few pro- 
ducers. A few producers, however, may supply nearly all of a given 
product, but the monopolistic element involved may have little prac- 
tical significance. The size of plant for efficient operation probably is 
so large relative to the demand for some products that only a few pro- 
ducers can profitably operate. In some cases side-line production by 
a few plants may supply adequately a given market. The signifi- 
cance of industrial concentration emerges when combinations, mergers, 
and affiliations result in multiple ownership or control of plants and 
fewness of producers rather than fewness of producing units. 

Another indicator of monopohstic elements is the frequency and 
magnitude of price changes for a given product over a period of time as 
compared with the movement of a group of prices for the same period 
which are presumably competitive. The comparison usually includes 



2 CONCENTRATION OF ECONOMIC POWER 

changes in output. A relatively small variation in price accompanied 
by a large variation in output is taken as a partial indication of 
monopolistic elements. In many marketing situations, however, the 
difference between posted or nominal prices and actual prices including 
all the variable terms of a transaction is extremely difficult to ascer- 
tain. Nominal prices over a given period may show little change, 
but the terms of sale may change substantially. Factors other than 
monopolistic elements, moreover, may in some cases account for a 
small variation in actual prices accompanied by large variation in 
output. Additional information with regard to the sale of a given 
product and the industry producing it is usually required in order to 
add significance to the above test for monopoUstic elements. 

Certain types of trade practices are usually recognized as indicators 
of monopolistic elements. These include practices, such as the use of 
basing points for prices, allocation of markets, dumping, identical 
bidding, and restricting licenses. These manifestations of monopo- 
listic activity are supplementary data in a study of industrial concen- 
tration. 

There are several possible relationships between tariffs and monop- 
ohstic elements in industry. When tariffs exclude effectively foreign 
sellers of a given product from the domestic market, monopoly in 
some cases may be fostered, or at least facilitated. The domestic 
market for the product maj^ be small relative to the world market. 
Only a few domestic production units, and these may not all be of the 
most efficient size, could perhaps operate profitably. On the other 
hand, without restricting tariffs in various countries specialized pro- 
ducers in different political areas would exchange directly or indirectly 
their specialties; they would produce for a larger market; and the 
opportunity for a greater number of production units of the most 
efficient size for a given product would be improved. 

The small number of domestic production units and the difficulty of 
attaining efficient operating size which may result from tariffs foster 
monopolistic developments. Because of fewness of production imits, 
lack of efficiency, and a group interest stimulated by a tariff on a given 
product, combmations, consolidations, and mergers are made easier 
than they otherwise would be. An additional incentive, moreover, is 
the possibility that in the case of a prohibitive tariff increased monop- 
olization among domestic producers will permit a more complete use 
to be made of the tariff with regard to domestic price policy. The 
growth of an industry, improvements in efficiency, and competitive 
selling may in some cases render a prohibitive tariff no longer signifi- 
cant because the domestic price is lowered sufficiently over a period of 
time to make importing improfi table without the tariff. If monop- 
olization, however, occurs in the industry, the domestic price policy 
followed may need the support of the tariff. 

In the event that the monopolistic industry engages in some export- 
ing, the tariff assurance against imports disturbing the domestic 
market strengthens its bargaining position with foreign producers in 
agreements to allocate certain marketing areas. Until recently under 
these conditions, the possibUity existed of selling abroad at prices 
substantially below domestic prices, transportation costs included, 
and these dumping prices may have in some cases constituted a potent 



CONCENTRATION OF ECONOMIC POWER 3 

trade weapon. Although the Webb-Pomerene Act of 1918 legalized 
combmations among domestic producers for export purposes, the 
Customs Administrative Act of 1938 renders ineffective the use of 
tariffs in order to prevent goods dumped abroad at very low prices 
from being resold in the domestic market. Prior to this act, American 
exports of a class dutiable as imports could be returned free of duty 
only when imported by or for the account of the person who exported 
them — a provision adopted at the end of the World War to prevent a 
back-wash of American exports of war and relief materials. Anyone 
may now import free of duty American products which have been 
exported and have remained unchanged. A dumping price, therefore, 
which is lower than the domestic price by more than the cost (including 
a profit) of returning American exports is no longer feasible. 

Although tariffs may foster monopohstic developments, may 
facilitate monopolistic practices, and monopolistic industries may be 
more effective in pressing for increases in tariffs, monopolies can and 
do exist without benefit of tariffs. Cost of transportation enables pro- 
duction units in different areas of the same country to exercise local 
monopolistic control. The same factor together with sanitary and 
other administrative restrictions eliminates foreign selling of many 
types of goods and services in the domestic market, or confines the 
selling primarily to coastal areas. Sheltered from foreign competition 
by costs of transportation and other obstacles to the movement of 
goods, domestic producers may develop monopolistic practices on a 
national scale. 

The products, moreover, of the same general commodity class 
frequently are different in quality, design, use, etc. Special character- 
istics of a domestic product may separate it sufficiently from similar 
goods produced abroad to allow monopolistic elements to develop in 
the domestic industry. If the industry produces other products 
which are practically identical with imported goods, it may engage in 
full-line forcing and thereby exclude most of the imports from the 
domestic market. Domestic buyers who need the specialty item of 
the industry may experience difficulty in obtaining it unless they buy 
the other products of the industry rather than the imported products. 

Other factors which in the absence of tariffs may account for 
monopolistic elements in domestic industries are patents and restric- 
tive licenses for the vise of patents; secret processes; ownership of 
natural resources not available, commercially or otherwise, in other 
countries; restricting of governmental purchases to domestic products; 
and a degree of industrial efficiency which makes the domestic industry 
the predominant supplier of the world market. Only the last two 
factors require explanation. Federal legislation (1933, 1935, and 
1937) provides that within certain discretionary limits purchases for 
the Federal Government, or purchases under its contracts by others, 
are limited to domestic products. State legislation of the same type 
designed primarily to exclude public purchases of the products of other 
States also excludes imported products. With regard to the factor of 
industrial efficiency which is sufficient to give a domestic industry a 
dominant place in the world market for a given product, tariffs are 
not significant and monopolistic elements may develop on a national 
scale which affect the price policy of sales both at home and abroad. 



4 CONCENTRATION OF ECONOMIC POWER 

3. REDUCTION OR REMOVAL OF TARIFFS AND INDUSTRIAL 
CONCENTRATION 

Since 1860, with a few exceptions, the general trend of tariff legisla- 
tion in the United States has been an upward revision of duties on 
imports. In 1890 Congress enacted the Sherman antitrust law in 
order to eliminate monopolistic developments in domestic industries 
and it also made a general upward revision of tariff rates which placed 
them above any previous level. No important downward revision 
was made in the tariff until 1913. 

The Tariff Act of 1913 lowered substantially the duties on many 
products, but foreign selling in the domestic market was soon hindered 
by the outbreak of the World War. An emergency tariff act in 1921, 
followed by a general revision of the tariff in 1922, raised many of the 
duties on imports to a higher level than in previous acts. The act 
of 1930 was a further general revision upward of duties on imports. 
Both the acts of 1922 and 1930 contained a provision which authorized 
the President, after an investigation and recommendation by the Tariff 
Commission, to raise or lower duties by as much as 50 percent. 
Changes in rates under this provision during the years 1922 to 1932 
were predominantly increases in duties. In the Revenue Act of 1932 
a group of commodities which had been mostly free of duty were 
made subject to an import excise tax.^ These taxes operate in the 
same manner as customs duties to restrict imports. Restrictions on 
imports into the United States probably reached an all-time record 
in 1932. Because of the foregoing increased restrictions on imports, 
practically all countries retaliated, many in a discriminatory manner, 
with tariff increases and other import restrictions which affected 
adversely the export trade of the United States. 

Since 1933 changes in duties and taxes on imports have been pre- 
dominantly downward. Some reductions have been made under the 
flexible provision (sec. 336) of the Tariff Act of 1930, but the most 
important changes have been made in reciprocal trade agreements 
with foreign countries. In 1934 an amendment to the Tariff Act of 
1930 authorized the President to negotiate trade agreements with 
foreign countries in which reductions of duties, not exceeding 50 per- 
cent, could be made in return for similar concessions on American 
exports. 

Agreements with 19 countries are now in effect which have reduced 
duties and taxes on a wide range of imports. The reductions apply to 
imports from countries which do not discriminate against American 
exports. In addition to this safeguard of fair and equal treatment in 
foreign markets, domestic producers are also given assurances by other 
provisions of the Tariff Act of 1930 against unfair foreign selling in 
the domestic market, such as monopolistic dumping, importing of 
bounty-fed products, and infringement of American patents. Dutia- 
ble imports from Germany, for example, have not been granted trade 
agreement rates since October 14, 1935, because of discriminatory 
treatment of American exports, and in addition to the duties of the 
act of 1930, dutiable imports from Germany since March 18, 1939, 
have been subject to countervailing duties equal to the amount of the 
export subsidy which they apparently received. 

1 An example of the imposition of import excise taxes, of the retaliation which followed, and of the 
attempts in trade agreements to improve the situation is given in ch. VI, Softwood Lumber and the 
Trade Agreements. 



CONCENTRATION OF ECONOMIC POWER 5 

From the foregoing brief tariff history reduction and removal of 
tariff duties appear as a possible aid in the restraint of monopolistic 
elements in domestic industries. \Mien these elements and tariffs co- 
exist with regard to the domestic production of a given commodity, 
the effects of a reduction or removal of the duty can be only roughly 
estimated. In some cases, as indicated previously, the change would 
not increase imports and hence would have no effect on the organiza- 
tion of the domestic industry or its price policy. In other cases reduc- 
tion or removal of tariffs which permitted a substantial increase in 
imports would have only a partial eft'ect; that is, the increase in im- 
ports might be confined because of transport costs largely to coastal 
areas and would lower prices there without affecting them appreciably 
in inland areas; or the increase in imports might lower the prices of 
certain grades of the product without affecting appreciably the com- 
modity class as a whole. Although this partial price-lowering ejffect 
would be of some benefit to consumers, the monopolistic elements of 
the domestic industry would probably continue. In those cases, how- 
ever, in which tariffs were the main factor responsible for the exclu- 
sion of imports, theii- reduction or removal would not only lower 
domestic prices substantially but also would eliminate monopolistic 
elements in domestic industries. Without tariff aid and in the ab- 
sence of other special factors favorable for monopolistic practices, the 
only possible monopolistic device would be some form of mternational 
agreement among producers which under the circumstances indicated 
would be very difficult to maintain. 

In the last group of cases reduction or removal of tariffs would be 
definitely advantageous for employment and consumption. Lower 
prices would increase consumption. The end of monopolistic restric- 
tions on supply in domestic industries would permit either fuller em- 
ployment in those industries, or in the expanding export industries. 
Exporting and importing are interdependent and over a period of years 
change in the same direction. A more liberal tariff treatment of im- 
ports, particularly in the form of reciprocal trade agreements, affords 
an opportunity to expand international trade, to obtain the benefits 
of specialized production and exchange, and to free, at least in part, 
domestic industries of monopolistic restrictions. 

4. PLAN OF INVESTIGATION 

Two methods were followed in the investigation. First, to obtain 
a statistical analysis of the existing relationship between tariffs and 
monopolistic elements in domestic industries, a representative sample 
taken from the Census of Manufactures, 1937, was examined. The 
sample included 1,807 of the products reported in the census and 
covered 14 of the 16 industrial classifications of the census.^ Approxi- 
mately 100 of the 350 industries in these classes were represented. 
The total value of the products included in the sample amounted to 
shghtly more than one-half of the total value of all products in the 
14 census classifications. 

For each product, as defined by the census, the percentage on a 
value basis supplied by the four largest companies was calculated for 
the 1,807 products of the sample. The percentages served as indexes 

2 Classes V and XV were omitted, i. e., printing, publishing, and allied industries; and railroad work* 

shops. 



g CONCENTRATION OF ECONOMIC POWER 

of industrial concentration.^ On the basis of these indexes the prod- 
ucts were divided into three groups; that is, the first one included 
products for which four companies or less supplied 75 percent or 
more of the total output (value), etc. The groups are indicated in 
table 1.* Because of incomplete data, a few items were placed in an 
unclassified group. 

Table 1. — Sample of industrial concentration, 1,807 products of the census of 1937 





Census products 




Number 


Value 


Percent 




840 
526 
402 
39 


$10, 156, 158, 739 

6,803,851.662 

12, 298, 424, 226 

247,258, 516 


34.4 




23.1 




41.7 




.8 






Total 


1,807 


29,505,693.143 


100.0 







1 Four companies or les.s supplied 75 percent or more of the total value of each product. 
* Four companies supplied from .50 to 74 percent of the total value of each product. 
' Four companies supplied 49 percent or less of the total value of each product. 

Source: Census of Manufactures, 1937. T. N. E. C. Industrial Concentration Study. 



All products of the sample were examined with regard to their tariff 
status in 1937. In addition, a more detailed study of the first group, 
namely the one with a concentration index of 75 or more was made. 
The special study includes 317 products and groups of products with a 
total value of $9",880,797,078 in 1937 which contains about 90 percent, 
on a value basis, of the products in the concentration class with an 
index of 75 or more.^ 

For each product, or closely related products,^ of the special study 
a brief schedule of essential information was prepared. First, it con- 

> As repeatedly pointed out by the Department of Commerce, these percentages of concentration have 
certain obvious imperfections as indexes of concentration. E.xperience has proved that in some industries 
census coverage of companies is not complete. In most instances this is probably not serious, but in a few- 
cases it may yield an index of apparent concentration greater than actual. In numerous cases the census 
classification is too narrow to provide significant figures on industrial concentration since the product 
classified separately may actually compete with a number of products in other classifications. It also fails 
to give an adequate picture of the competition that may exist in industries like the rubber tire industry 
where despite concentration of production competition at times has been intense. Studies of an industry in 
its entirety such as those given in subsequent chapters are needed in order to supplement the comparison by 
products. Obviously in group figures on concentration such as those given in chapters I and II and appen- 
dix I below the percentages of concentration given may tend to be too high. On the other hand, the measure 
is by companies and hence fails to show concentration of control by trade associations, interlocking manage- 
ment or "g(>ntlemen's agreements." The measure like the underlying statistics is national. Yet for quite 
a large number of products the competitive market area is much smaller. Here the significant point would 
be the concentration in each area. The measure applied throws the product into one of three groups accord- 
ing to whether the percentage of production by value of the four largest companies amounted to 75-I-: 50 to 
74; or 49 or less. Obviously this classification is arbitrary. The choice of different figures might have pro- 
duced a different picture, at least in its details, though preliminary tests indicate that the major results are 
identical with those found in this study. 

* A break-down of table 1 by census groups is given in appendix I. table 1. 

» The exact duplication of products in the two groups had a total value of $9,066,605,134. Many small 
items, valued at less than .$5(X),000, were not included in the special study unless they could be conveniently 
grouped for the detailed tariff analysis. Some larger items of the 75-cona'ntration class were not included in 
the special study becau.se classification of products in the census frequently is different from the classification 
for duties, imports, and exports. In the investigation, however, of tariff status 32 products, valued at 
$814,191,944 in 1937 («.2 percent of the special .study group) which were not included in the sample of 1,807 
products, were added to the special study; the total of which (.$9,880,797,078) is 97.3 percent as large as the 
value of the 75-concenlrat ion group. They were added because tariff information was available and because 
they met the requirements of the special study with regard to value ($500,000 or more) and industrial con- 
centration (75 or more), 'ilie 32 products are jute yarn; bagging for baling cotton; vegetable parchment; 
dissolving pulps; cigarette paper; phosphoric acid; crude .sulfur; soaps; technical glassware; spectacle glass; 
blister and refined copper; aluminum ingots (copper and aluminum ingots partly in group of 1807); carbon 
and graphite electrodes, and lighting carbons; sewing machines; glues, 4 kinds; briar pipes; chewing gum; 
binder twine; press cloth; wax crayons; toothbrushes; slide fasteners- buttons, 3 kinds: phonograph needles, 
record blanks, and disk records. See appendix II for a detailed schedule of each of these products. 

6 Since many industries and companies produce a great variety of products and since the census data are 
for individual products, the study was confined largely to a product basis. Some items were grouped which 
explains in part the wide difference between the number of products in the 75-concentration group (840) 
and the number in the special study (317) and the smaller difference between the values of the two groups. 



CONCENTRATION OF ECONOMIC POWER 7 

tallied a short statement with regard to the description and use of the 
product. Second, in a tabular form the status of the industry in 1937 
was presented, namely, the total number of companies and plants, the 
total value of domestic production and the percent supplied by the 
four largest companies, and the tariff status of the product (free, ad 
valorem rate, or equivalent ad valorem rate). Third, the recent 
tariff treatment of the product beginning with the act of 1913 was 
indicated. Fourth, if the duties were specific or partly so, an average 
ad valorem equivalent was calculated whenever possible for the years 
1934-38, inclusive. Fifth, domestic production, imports, and exports 
on a value basis for the years 1935 and 1937 were indicated. Sixth, 
a brief statement was included of the factors which probably accounted 
for the industrial concentration and of the probable changes in im- 
ports and domestic prices which would follow a substantial reduction 
or removal of duties. 

On the basis of the information contained in the schedules a statis- 
tical analysis was made of the existing relationship between tariffs 
and monopolistic elements in domestic industries. Using the total 
value of domestic production in 1937 of all products in the special 
study as a basic quantity, percentages were calculated for several 
classifications, such as the percent of the total which was not directly 
affected by tariff legislation because imports were free of duty; the 
percent apparently affected by low, intermediate, and high duties 
on imports; and the percent affected by duties which probably effec- 
tively restricted imports. The last classification indicates the coex- 
istence of a high degree of industrial concentration as described 
above, and effective tariff restriction of imports. 

The second method of investigation consisted of a historical survey 
of a few industries which showed a high degree of industrial concen- 
tration. Since the products of a given industry are frequently quite 
diverse with regard to use and conditions of sale, their relationship 
within an industry is important. In many instances the significance 
of industrial concentration and tariff treatment is changed materially 
when the examination is shifted from a product to an industry basis. 
The investigation in each case usually covered the period since 1900 
and included an examination of factors, such as changes in tariffs; 
changes in domestic production, imports, and exports; and trends in 
concentration. Although causal relationships are difficult to estab- 
lish with regard to the above factors, this method permitted an 
exploration of the conditions, policies, and practices which accom- 
panied the development of industrial concentration in a given industry 
and provided a more adequate basis for estimating the probable 
effects of present tariff changes. These few cases supplement the 
analysis of the first method and indicate the possibilities of additional 
investigation with regard to the products included in the statistical 
sample of industrial concentration. 

5. SUMMARY OF FINDINGS 

The analysis of the sample of 1,807 products (table 2) indicated 
that many duties on imports were not highly restrictive.^ Only a 
few products, however, in the sample were free of duty, namely, 2.5 
percent. Of the remainder, 12.2 percent were subject to duties of 

■ A break-down of table 2 by census groups is given in appendix I, table 2. 
257771— 41— No. 10 2 



8 



CONCENTRATION OF ECONOMIC POWER 



60 percent or more (ad valorem or equivalent);* 36.5 percent were 
subject to duties ot 30 to 59 percent; and 47.6 percent to duties of 
29 percent or less. In these three dutiable groups, duties probably 
had little or no effect on imports for approximately half of the total 
value of each group in 1937. Duties seemed to be highly restrictive 
on imports for 50 percent of the high-duty group; for 7.5 percent of 
the intermediate duty group; and for 12.7 percent of the low-duty 
group. For the remainder of each group the duties were probably 
moderately restrictive. 



Table 2. 



-Sample of industrial concentration, 1,S07 products of the census of 1937, 
according to duty status and tariff effects in 1937 









Restrictive ' effects of tariffs 


Duty status 




Insignificant 


Moderate 


Substantial 




Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


60 or more * 

30 to 59 2 

29 or less 2 

Free 


$3, 603, 689, 355 

10, 769, 586, 884 

14, 055, 243, 042 

753, 226, 863 

323, 946, 999 


12.21 
36.50 
47.64 
2.55 
1.10 


$1, 482, 126, 495 
6. 167, 097, 007 
6,899,483,113 


41.13 

57.27 
49.09 


$311,714,614 
3, 797, 845, 372 
5,370,311,748 


8.65 
35.26 
38.21 


.$1, 809, 848, 246 

804, 644. 505 

1, 785, 448, 181 


50.22 
7.47 
12.70 


Data incomplete - 


























Total 


29, 505, 693, 143 


100. 00 


14, 548, 706, 615 


49.31 


9, 479, 871, 734 


32.13 


4, 399, 940, 932 


14.91 



1 Based on information recorded on schedules of each product and reproduced in Appendix II for the high 
concentration group. 

2 Ad valorem rates of duty or equivalent ad valorem rates, 1937. 

Source: Census of Manufactures, 1937. Forthcoming Study on Ceneentration of Production made for 
the Temporary National Economic Committee by the Department of Commerce, Foreign Commerce 
and Navigation of the United States. 

A classification of the sample according to the three industrial 
concentration groups and the restrictive effects of duties (table 3) 
showed that there was no close connection between high-concentration 
and restrictive tariffs.^ In the high-concentration group (75 or more) 
duties probably had little or no effect on imports for 69 percent of the 
group. On the other hand, in the low-concentration group (49 or 
less) duties probably were not restrictive on imports for 40 precent 
of the group. Stated differently, duties were restrictive for only 31 
percent of the high-concentration group but were restrictive for 60 
percent of the low-concentration group. 

8 Since values in import statistics are in all but a few cases values f. o. b. the foreign port, these percentages 
are somewhat higher than if calculated on the duty-paid wholesale value laid down in the United States. 
On the other hand, imports are frequently of a special grade so that the ad valorem equivalent is quite 
different (usually lower) from what it would be if all grades entered. In extreme cases where imports are 
small and sporadic the ad valorem equivalent may have no significance whatever. The general lack of 
dependability of ad valorem equivalents alone as a measure of tariff protection is evidenced by numerous 
cases where we are on an export basis for a product (export more than we import) and others where the 
ad valorem equivalent varies greatly from year to year (without change in the duty) or from country to 
country. 

' A break-down of table 3, by census groups ,is given in appendix I, table 3. 



CONCENTRATION OF ECONOMIC POWER 



Table 3.- 



-Sample of industrial concentration, 1,807 products of the census of 1937, 
according to tariff effects in 1937 









Restrictive effect of tariffs 




Index of 
concentra- 




Insignificant 


Moderate 


Substantial 


Free, 
value 




Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 




75 or more '. 
50 to 74 2_... 
49 or less 3... 


$9, 739, 241, 930 
6, 583, 523, 679 
12, 096, 062. 619 


34. 27 $6, 733, 680, 639 
23.17 3,011,513,414 
42.66 4.793,821,509 


69. 14 $2, 500, 279, 229125. 67 .$505,282,0621 5.19 
45.74 2,740,257,801141.62 831. 752, 464|12. 64 
39. 63! 4, 239, 334. 704 35. 05;3, 062, 906, 406|25. 32 


$359, 740, 411 
218, 985, 927 
174, 500, 525 


Total 

Data in- 


28, 418, 828, 228 
333, 638, 052 


100.00 


14, 539. 015, 652 




9, 479, 871, 734 


-- 


4, 399, 940, 932 




753,226,863 


Grand 
total *. 


29, 505, 693, 143 






















1 











' 4 companies or less supplied 75 percent or more of the total value of each product. 
' 4 companies supplied from 50 to 74 percent of the total value of each product. 
3 4 companies supplied 49 percent or less of the total value of each product. 

< Includes the value of products free of duty. 

Source: Census of Manufactures, 1937; Temporary National Economic Committee, Industrial Concen- 
tration Study. 

The special study of the group of 317 products, which contains 
about 90 percent of the products in the high-concentration class of the 
sample of 1,807 products, examined in more detail the relationship 
between high industrial concentration and tariff restriction. It also 
extended the analysis in order to determine not only the coexistence 
of high concentration and restrictive tariffs but also the coexistence 
of monopolistic elements and restrictive tariffs, the reduction or 
removal of which would offset the monopolistic elements in domestic 
industries. 

The results of the special study conform in part with those of the 
large sample (table 4). A slightly larger percent, namely, 3.9 as 
compared with 2.5, were free of duty. Since all of the 317 products 
have a concentration index of 75 or more, factors other than the tariff 
which were referred to previously account for the high concentration 
of the 3.9 percent. Of the remainder, 14.7 percent were subject to 
duties of 60 percent or more (ad valorem or equivalent); 27.5 percent 
were subject to duties of 30 to 59 percent; and 53.9 percent, to duties 
of 29 percent or less."^ Of these dutiable groups, however, duties 
probably had little or no effect on imports for 65 percent of the total 
value (table 5)." In a few cases the duties were ineffective because 
of the international monopolistic character of the 'ndustry. Removal 
or substantial reducton of duties for 35 percent of the dutiable prod- 
ucts on a value basis would probably increase imports sufficiently to 
have at least a partial eff"ect on domestic prices. 

»» For duty status analysis, by groups, see eh. II, 
" For tariff effectiveness, by groups, see ch. II. 



10 



CONCENTRATION OF ECONOMIC POWER 



Table 4. — Sample of high industrial concentration, 317 products mainly of the 
census of 1937, according to duty status in 1937 ' 





Duty status 


Products 




Value 1 Percent 




$1, 447, 192, 185 ! 14. 7 


30 to 59 2 . . 


2. 724, 820, 707 1 27. 5 




5,322,254,820 53.9 


Free 


386,529,366 3.9 








Total 


9 880 797 078 100 







I 4 companies or less supplied 75 percent or more of each product on a value basis. 
' Ad valorem rate or equivalent in 1937. 

Source: Census of Manufactures. 1937; Foreign Commerce and Navigation of the United States; Tem- 
porary National Economic Committee Industrial Concentration Study. 

Table 5. — Sample of high industrial concentration, 317 products mainly of the 
census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of duties 


Number 
of prod- 
ucts 


Domestic produc- 
tion value in 1937 


Percent 


Monopolistic elements in domestic industries partially offset 

Duties restrictive but monopolistic elements not significant 


117 
74 

114 
12 


$2, 635, 190. 632 

660, 572, 835 

6, 198, 504, 2'!5 

386, 529, 366 


27.7 
7.0 
65.3 


Free of duty 


3.9 






Total 


317 


9, 880, 797, 078 


(') 







1 The first 3 percentages are based on the total of dutiable products, namely, $9,494,267,712. The percent 
free of duty is based on the total value for all 317 products. 

Source: Census of Manufactures, 1937; Foreign Commerce and Navigation of the United States; Tem- 
porary National Economic Committee Industrial Concentration Study. 

A high degree of industrial concentration, however, especially on a 
product basis, is not always of great practical significance. Some 
products may be m.inor items for an industry and may be produced by 
only a few companies, with little indication of monopolistic restriction. 
Although removal or reduction of duties in such cases may be desirable 
and effective with regard to domestic prices, they cannot be expected 
to aid materially in offsetting domestic monopolistic practices. When 
products which seem.ed to belong to this group are eliminated from the 
total which was probably significantly aft'ected by duties, the above 
estimate of 35 percent was reduced to approximately 28 percent. In 
other words, for 28 percent of the products apparently affected by 
duties on imports, rem.oval or substantial reduction of duties could be 
reasonably expected to aid m.aterially in the restoration of competition 
in the domestic market. 

The above estim.ates arc, of course, subject to error for specific 
products, but the errors may easily be offsetting. In calculating the 
28 percent, for example, som.e products may have been included which 
subsequent experience would indicate should have been excluded and 
vice versa. The estimates, moreover, are based largely on the year 
1937 and do not include allowances for special conditions, such as 
countervailing duti(^s on imports from Germany, informal quotas on 
imports from Japan, and war conditions which are likely to curtail 
imports from several large exporting countries. 



CONCENTRATION OF ECONOMIC POWER H 

The above 28 percent cannot be interpreted to mean that in those 
cases tariffs were the cause of the development of monopoUstic ele- 
ments in domestic industries. The statistical analysis of industrial 
concentration and tariffs, as well as the supplementary case studies of 
industries, indicate that tariffs may foster and facilitate monopolistic 
practices, but these practices may develop without benefit of tariff. 
On the other hand, the analysis does suggest that a significant number 
of products not included in the special study for which the index of 
industrial concentration is as low as 50 percent is probably affected by 
monopolistic elements which could be partially offset by appropriate 
changes in duties on unports. Four of the largest companies, for 
example, may supply only 50 percent of the output of a given product, 
but the largest may supply 30 percent. Monopolistic possibilities 
and practices are not necessarily confined to industries which exliibit 
a high degree of industrial concentration. 

When restrictive tariffs are reduced or eliminated, consumers receive 
some benefit regardless of the degree of competition in the domestic 
industry. The benefit to be derived is probably substantial in many 
cases. Two products, sugar and rayon yam, were analyzed from the 
point of view of consumers' cost.^^ In 8 recent years the domestic 
consumers have paid on the average each year about $273,633,000 
more for sugar because of import restrictions. Tariff protection of 
rayon yam (principal weights only) imposed in 1937 and 1938 an 
additional cost on the consumers of $139,171,000. Some progress 
toward lower duties was made in recent j^ears under the reciprocal- 
trade-agreements program. Approximately 39 percent of the products 
on a value basis included in the special study is affected by duty 
reductions and bmdings in the various trade agreements. Regardless 
of the method used, a coordinated policy in the use of tariffs and in the 
preservation of competition or regulation of monopoly is needed in 
order to promote efficient production and to assure that a liberal 
portion of the fruits of efficiency will reach the mass of consumers. 

'» See ch. VII. Consumers' cost from import restrictions: Sugar and rayon yarn. 



CHAPTER II 

SAMPLE STUDY OF INDUSTRIAL CONCENTRATION AND 

TARIFFS 

1. INTRODUCTION 

The study, as already indicated, is based primarily on the Census of 
Manufactures for the year 1937. A few comments with regard to the 
census will serve as an introduction to a brief discussion of the various 
groups included in the sample of 317 products. First of all the census 
does not include establishments or plants which were idle throughout 
the year or which reported products valued at less than $5,000. For a 
small number of products covered by the sample the degree of hidus- 
trial concentration will be increased because of the omission. Indus- 
trial concentration, however, which is calculated on a product-basis 
understates in many important cases the degree of concentration for 
an industry or for a group of industries. Four leading companies, for 
example, may supply 75 percent or more of the output of 10 products 
and the analysis of each may not seem of great importance. But 5 
of the products may constitute an important industry, the other 5 
may be the main products of 5 separate industries, and 1 company 
may be the principal producer in all cases. 

The value of products in the census are reported values at the plant 
for commodities produced during the year which may or may not be 
sold. These values reflect only roughly the relative importance of 
products and industries because they include the value of materials 
used. Since they are not values added by manufacture at each stage 
of production, duplication is involved which is not uidform for various 
products. Some of the products included in the sample represent 
different stages in the same general industry which overstates their 
relative importance. From the point of view of industrial concen- 
tration and tariffs, however, an analysis of products at different stages 
of production is essential. 

The data for value of domestic production, as well as number of 
companies, plants, and concentration, in some instances are esti- 
mates. The Bureau of the Census is prohibited by law from releas- 
ing any statistics that might disclose data reported by individual 
companies or establislmients. These estimates are subject to error, 
but are used only when an investigation of available information 
seemed to assure a reasonable degree of accuracy. 

The sample of 317 products, each with a concentration index of 
75 or more, was examined in detail in order to determine as accurately 
as possible the relationship between high concentration and duties 
on imports. On the basis of value, as stated in chapter I, the special 
study of 317 products contains about 90 percent of the products in 
the high concentration group of the large sample of 1,807 products. 
Since 32 products, however, were added to the special study which 

13 



14 



CONCENTRATION OF ECONOMIC POWER 



are not included in the large sample, the total value of the 317 prod- 
ucts represents 97.3 percent of the value of the high concentration 
group of the large sample. In the analysis which follows, the prod- 
ucts added will be indicated. In order to facilitate the analysis, the 
grouping of the 317 products does not conform exactly to census 
classifications. The differences will be explained. 

2. FOODS AND RELATED PRODUCTS 

The first group consists of 18 products in the food industries which 
have a total value of $431,207,671.^ In all cases imports are subject 
to duties. About 23 percent on a value basis was subject to duties 
of 60 percent or more; 67 percent to duties of 30 to 59 percent; and 
10 percent to duties of 29 percent or less. The duties probably re- 
strict appreciably imports of the following products (65.3 percent of 
the total): Soft or brown sugar, granulated sugar, grape juice, fresh 
mutton and lamb, canned dog and cat food, corn oil, dextrine, buck- 
wheat flour, and canned plums. For these products, except the last 
two (64.9 percent of the total), removal or substantial reduction of 
duties would assist in offsetting monopolistic elements in the domestic 
industries (table 6). 



Table 6. — Sample of high industrial concentration, 18 food products of the census 
of 19S7, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 
duties 


Number 

of 
products 


Number 

of 
companies 


Number 

of 

plants 


Domestic 

production 

value in 

1937 


Percent 


Monopolistic elements in domestic industries 


7 

9 
None 

18 


516 

218 
175 


691 

223 
210 


$279, 752, 328 

1, 556, 989 
149, 898, 354 


64.9 


Duties restrictive, but monopolistic elements 
not significant 


.4 


Duties not restrictive, no effect on monopoly,. 
Free of dutv 


34.7 












Total 


909 


1,124 


431, 207, 671 











One of the important products included in this group is sugar. 
Because of restrictions on imports, consumers each year pay a sub- 
stantial additional amount for sugar. An analysis of consumers' 
costs for the protection of domestic-sugar production is presented in 
chapter VII. 

Cornstarch, which is not mentioned in the above list, is included 
in the group of 18 products. Since several corn products are also 
included, of which two, corn oil and dextrine, are listed above, a 
brief survey of the industry will clarify the analysis.^ Cornstarch is 
an intermediate product in the corn wet-milling industry. Approxi- 
mately two-thirds of the domestic production is converted by the 
same companies into corn sirup and corn sugar; a minor portion into 
dextrine. Byproducts are corn oil, corn cake, and meal. About 95 
percent of all starch produced domestically is made from corn; the 
remainder from potatoes, wheat, and rice. Imported starches con- 
sist mainly of tropical starches, principally tapioca, and sago, which 
are free of duty, and potato starch. Approximately one-third of the 

' See Appendix H, group A, for a schedule of information for each product. 

' See United States Tariff Commission Survey, "Starches and Dextrines," for a complete analysis. 



CONCENTRATION OF ECONOMIC POWER 15 

starches sold in the United States is suppUed by imports. The im- 
ported starches are used in the manufacture of textiles, paper, ad- 
hesives, and explosives; a minor use is as a food product. Cornstarch 
is also used for the same purposes and in addition it is used in laun- 
dry work and in the manufacture of corn sirup and sugar. A sub- 
stantial quantity of cornstarch is exported. 

As stated above, tropical starches are free of duty. They were 
bound on the free list in the trade agreement with the Netherlands, 
effective February 1, 1936. In the same agreement moderate reduc- 
tions were made in the duties on potato starch and potato dextrine. 
Because of an increase in corn prices in 1937 and a greater differential 
than usual between the price of cornstarch and the price of tapioca, 
imports of the latter increased substantially. The domestic industry 
in 1938 requested formally that the agreement with the Netherlands 
be revised in order to eliminate the binding of tapioca and sago on the 
free list. This action, obviously, was intended to clear the way for 
imposition of an import excise tax or an import quota. Up to the 
present the request has not been granted. 

The degree of industrial concentration is one of several factors which 
makes appropriate the removal or substantial reduction of tariffs for 
the industry. Since 1890 the development of the wet-milling industry 
has been accompanied by frequent attempts to obtain complete monop- 
olistic control.^ Although the Corn Products Refining Co. was ad- 
judged guilty in 1916 of violating the Antitrust Act, subsequent legal 
action in the form of a consent decree in 1919 allowed the situation to 
remain practically unchanged. 

The industry in 1937 consisted of 11 companies and 14 plants. 
Except for 1 plant of the largest company at Edgewater, N. J., the 
plants were located in the Middle West. The 4 largest companies 
probably produced more than 85 percent of the industry's products; 
the largest company, probably more than 50 percent.'* These 4 com- 
panies produce a full line of products; the 7 other companies confine 
their production mostly to a few products. Several of the larger com- 
panies engage in other business activities. The largest company, for 
example, is financially interested in a paper-box manufacturing com- 
pany and in a company which owns about half of the potato-starch 
factories.^ It also has a financial interest in 13 starch factories 
located in foreign countries. 

Removal or substantial reduction of duties on imports which are 
related to the industry's products would allow foreign selling to be- 
come a partial regulator of domestic prices. Smce cornstarch is ex- 
ported and since imports of tropical starches are free of duty, the price 
of cornstarch would probably be only slightly affected in eastern 
coastal areas. The price of corn sirup and corn sugar would not be 
appreciably affected. Imports of dextrine and corn oil, however, 
would probably increase and would lower prices moderately. Al- 
though a downward revision of duties would have only this partial 

3 The early history of these attempts is given by Myron W. Watkins, "Industrial Combination and 
Public Policy," 1927, p. 210. 

< The companies are the Corn Products Refining Co., A. E. Staley Manufacturing Co., Penick & Ford, 
and the American Maize-Products Co. 

5 Potato starch is not included in the sample because domestic production in 1937 amounted to less than 
$500,000, namely, $287,927. In 1935 domestic production was valued at $883,315. In 1937 the industry 
comprised 8 companies and 9 plants. The 4 largest companies accounted for 8fi percent of the total output. 
Although the duty on potato starch was reduced from 2J.4 to IJi cents per pound in the Netherlands Trade 
Agreement, the equivalent ad valorem rate was 88 percent in 1937 on imports valued at $208,760. 



16 



CONCENTRATION OF ECONOMIC POWER 



effect, it removes any potential effectiveness which some of the duties 
may have and makes less likely the imposition of restrictions on the 
importation of tropical starches. 

3, TEXTILES AND ALLIED PRODUCTS 

The second group consists of 38 products in the textile industries 
which have a total value of $496,509,521.^ In all cases imports are 
subject to duties. About 60 percent on a value basis was subject to 
duties of 60 percent or more; 33 percent, to duties of 30 to 59 percent; 
and 7 percent, to duties of 29 percent or less. With the exception of 
two items, cotton duck fabrics and cotton tire fabrics, the duties prob- 
ably restrict appreciably imports (97.4 percent of the total). Since 
many of the products represent only very minor parts of the textile 
industries and consist frequently of side-line products, the high degree 
of industrial concentration is probably not associated with significant 
monopolistic elements, Removal or substantial reduction of duties 
would probably assist in offsetting monopolistic elements in domestic 
industries producing the following 11 items (71.9 percent of the total): 
Rayon yarn; rayon staple fiber; infants' anklets and slack socks; turk- 
ish and terry woven towels and toweling; cotton gauze, tobacco, and 
cheese cloth; auto cloths (with pUe); jute yarns; bagging for baling 
cotton; Imoleum and cork carpet; inlaid linoleum; and asphalted felt- 
base rugs (table 7). Two products, jute yarns and bagging for baling 
cotton, are part of the 32 products not included in the large sample. 

Table 7. — Sample of high industrial concentration, 38 textile products mainly of the 
census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 
duties 


Number 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic 
production 
value, 1937 


Percent 


Monopolistic elements in domestic industries 


11 

25 

2 

None 


129 

278 
17 


162 

301 
21 


$356, 931, 936 

126, 428, 538 
13, 149. 047 


71.9 


Duties restrictive, but monopolistic elements 


25.5 


Duties not restrictive, no effect on monopoly.. 
Free of duty 


2.6 












Total 


38 


424 


484 


496, 509, 521 









Of the 11 products listed above rayon yarn is the most important. 
Its production was developed in the United States during the period 
1910-20 by the American Viscose Corporation a subsidiary of the 
British Courtlands Co. The duty on imports was increased in the 
tariff acts of 1922 and 1930. In 1937 the equivalent ad valorem was 
120 percent. During this period new companies entered the field, 
some of which were assisted by Dutch and German companies. 
Nearly all important European producers, including the parent com- 
panies of certain American firms, are closely related by financial ties 
and by agreements. The information available is not sufficient to 
determine with reasonable accuracy the relationship of the American 
industry to the international organization of the rayon industry. 

Trade practices of the domestic industry during the period October 
1931 to Jime 1932 which seemed to lessen price-competition were the 

' A schedule of information for each product is given in Appendix II, group B. Rayon yarn and rayon 
staple fiber are classified by the census in chemicals. 



CONCENTRATION OF ECONOMIC POWER 17 

basis of a cease and desist order by the Federal Trade Commission. 
In 1937 the industry consisted of 17 companies and 26 plants. Of 
these companies 3 are large, 6 are of medium size and 8 are small. 
The two largest companies, the American Viscose Corporation and the 
E. I. duPont deNemours & Co., owned 10 of the plants and probably 
supplied more than 50 percent of the rayon yarn in 1937, These 
two companies also supplied about 85 percent of the domestic produc- 
tion of transparent cellidose wrapping material which was valued at 
$41,000,000 in 1937. Because of incomplete data this item is not 
included in the sample. 

A substantial reduction of the duty on rayon yam would probably 
allow imports to serve as a partial regulator of domestic prices. Al- 
though the international organization of the industry, including the 
possible participation of a significant portion of the domestic industry, 
might offset materiallj^ the effect of a duty reduction, the opportunity 
for independent sellers would be improved. In any event, a reduction 
of the duty which made imports possible would eliminate the tariff 
as a bargaining factor in the international allocation of markets. 
The possible benefits to consumers from such a reduction are discussed 
in chapter VII. 

4. WOOD AND PAPER PRODUCTS 

The third group consists of 16 products in the wood and paper 
industries which have a total value of $112,741,142.^ The largest 
item, dissolving pulps, is free of duty (21 percent of the total). It 
was bound on the free list in the second Canadian agreement, effective 
January 1, 1939. About 10 percent of the total products on a value 
basis was subject to duties of 60 percent or more; 37 percent, to duties 
of 30 to 59 percent; and 32 percent, to duties of 29 percent or less. 
Duties probably restrict imports of the following products (61.1 
percent of dutiable products): cork insulation, stoppers, gaskets, etc.; 
matches (strike-on-box) ; cigarette paper; vegetable parchment; 
wrapping paper; kraft wrapping paper; book paper (containing ground 
wood); and leather board. Removal or substantial reduction of 
duties would probably assist in offsetting minor monopolistic elements 
in domestic industries producing these items with the exxeption of the 
last four (30.6 percent of the dutiable products, table 8). Three 
products; vegetable parchment, dissolving pulps, and cigarette paper, 
are part of the 32 products not included in the large sample. 



Table 8. — Sample of high industrial concentration, 16 wood and paper products 
mainly of the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 
duties 


Number 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic 

production 

value in 1937 


Percent 


Monopolistic elements in domestic industries 


7 

4 
4 

1 


65 

41 
42 
3 


73 

48 
55 
6 


$27, 176, 616 

27, 134, 463 
34, 559, 024 
23,871,039 


30.6 


Duties restrictive, but monopolistic elements 


30.5 


Duties not restrictive, no effect on monopoly 

Free of duty . . 


38.9 
>21.1 






Total 


16 


151 


182 


112, 741, 142 









• Percent free of duty is based on total for the group; percentages for the remainder of the group are based 
on the total of dutiable products in the group. 



' A schedule of information for each product 
paper are grouped separately by the census. 



given in appendix II, group 0. Forest products and 



18 



CONCENTRATION OF ECONOMIC POWER 



5, CHEMICALS AND ALLIED PRODUCTS 

The fourth group consists of 49 products in the chemical industry 
and related industries which have a total value of $606,997,498.* 
Imports of 6 of these products are free of duty (9.6 percent of the 
total). About 2 percent on a value basis was subject to duties of 
60 percent or more; 18 percent, to duties of 30 to 59 percent; and 
70 percent, to duties of 29 percent or less. Of the dutiable products, 
duties do not seem to restrict significantly imports of 11 products (11 
percent of the total) ; namely, acetone, refined borax, boric acid, phos- 
phoric acid, butyl alcohol, synthetic methyl alcohol, carbon bisulfide, 
silver nitrate, anhydrous ammonia, methyl chloride, and acetylene. 
Duties probably restrict imports of 4 other products, but their removal 
or reduction would not offset important monopolistic elements in the 
domestic industries (50.8 percent of the total). These products in- 
clude soap, trisodium phosphate, zinc sulfate, and sodium sulfide. 
Removal or substantial reduction of duties affecting the remaining 
28 products would assist in offsetting monopolistic elements in the 
domestic industries (38.2 percent, table 9).^ Three products; phos- 
phoric acid, crude sulphur, and soaps; are part of the 32 products not 
included in the large sample. 

Table 9. — Sample of high industrial concentration, 49 chemical products, mainly 
of the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 


Number 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic production 


duties 


Value in 1937 


Percent 


Monopolistic elements in domestic industries 
partially mitigated 

Duties restrictive, but monopolistic elements 
not significant 

Duties not restrictive, no effect on monopoly 


28 
4 
6 


312 

233 
81 
63 


409 

266 
200 
95 


209, 957, 842 

278,711,517 
60, 194, 458 
58, 133, 681 


38.2 
50.8 

n.o 

'9.6 






Total.-. 


49 


689 


970 


606, 997, 498 









' Percent free of duty is based on total for the group; percentages for the remainder of the group are based 
on the total of dutiable products in the group. 

One of the eight products free of duty is sodium bicarbonate. It is 
produced by the soda-ash industry. Soda ash (sodium carbonate) is 
the most important mdustrial alkali; the primary product of the entire 
alkali industry. Domestic production of soda ash in 1937 was valued 
a+ approximately $30,000,000. About one-third of the output is used 
fcr the manufacture of glass; another third, for the production of 
caustic soda and other alkalies; and the remainder, mostly for the 
manufacture of soap and paper. Soda ash is dutiable at one-fourth 
cent per pound ; caustic soda, at one-half cent per pound ; and modified 
sodas and super alkalies at various rates. 

Because of incomplete data soda ash, caustic soda (sodium hy- 
droxide), and modified sodas are not included in the sample. Removal 
or substantial reduction of duties, however, would probably improve 

' A schedule of information for each product is given in Appendix IT, Group D. Census classifies 
residuum or tar with petroleum and coal products. 

' They are caffeine; amy] and butyl acetates; cromic, citric, oxalic, and tartaric acids; bromine; calcium 
carbide; carbon tetrachloride; sal ammoniac; refined glycerine; potassium hydroxide; ammonium nitrate; 
hydrogen peroxide; sodium silicate; aluminum, copper and magnesium sulfates; lithopone; litharge; red 
lead; zinc oxides; white lead; whiting; two kinds of coal-tar resins; and cartridges. 



CONCENTRATION OF ECONOMIC POWER IQ 

competitive conditions. Soda ash is produced by 10 companies which 
own 13 plants. Six large companies operating 9 plants and using the 
ammonia-soda process account for most of the output. The four 
largest companies produce approximately 75 percent of the total. 
These companies are also the principal producers of caustic soda, 
sodium bicarbonate, modified sodas, and super alkalies. In some 
instances the last two products are made by subsidiaries or inde- 
pendents which buy soda ash from these companies. 

Soda ash is sold mostly on the basis of grades and contract prices. 
A basing-point price policy is used for 1. c. 1. shipments. Nearly 
all of the companies are members of the United States Alkali Export 
Association, Inc. which is organized under the Webb-Pomerene Act. 
The association probably has exclusive export rights. The principal 
European producers belong to the International Alkali Cartel. Ap- 
parently some allocation of export markets is arranged by these two 
combinations. Although the domestic industry is on an export basis 
for soda ash and some of its products, the duties on imports probably 
assist materially in the maintenance of monopolistic elements within 
the industry. 

The borates industry is closely related to the soda ash industry. 
One of the two largest companies producing borates also produces 
sodium carbonate. One of the companies producing sodium car- 
bonate and sodium bicarbonate also produces borax as a byproduct. 
The borates industry also overlaps with the potash industry. An 
important product of the latter is potassium hydroxide which is one 
of the 28 products referred to previously. In 1936 the Department 
of Justice began an investigation under the Sherman Act of the potash 
industry because of the use of a basing-point system. The industry 
is organized in a trade association and in an export association (Webb- 
Pomerene). Refined borax and boric acid are included with the 
products for which duties do not seem to restrict imports. Although 
these products are exported in large quantities, the duty on imports of 
boric acid, especially in eastern coastal areas, may contribute to 
monopolistic elements in the domestic industry. Two companies, 
one of which is a subsidiary of a large international concern, supply 
approximately 85 percent of the domestic production of crude and 
refined borates.^" 

An important group of products for the coal-tar industry is not 
included in the sample because of the need for additional data in order 
to make a detailed analysis. These products are the numerous coal- 
tar dyes. About 800 individual dyes are produced in the United 
States and about the same number, not produced domestically, are 
imported. In many instances these dyes are sold under several trade 
names and in several strengths. Values vary from about 15 cents 
to several dollars per pound. Very high duties were imposed on dyes 
after the World War for the purpose of establishing an American dye 
industry. These duties, originally 60 percent ad valorem (based on 
American selling price for imports of competitive dyes) and 7 cents 
per pound, practically prohibited the importation of cheaper dyes. 
The Tariff Act of 1922 provided that at the end of a 2-year period the 
ad valorem part of the duty became 45 percent ad valorem. In the 
Swiss trade agreement, effective February 15, 1936, the ad valorem rate 
was reduced to 40 percent and the specific rate was eliminated, but the 

'• An analysis of the industry is given in chapter V, The Borates Industry. 



20 CONCENTRATION OF ECONOMIC POWER 

minimum duty was the equivalent of 22)^ percent ad valorem plus 
S}i cents per pound. Trade-agreement duties are not applicable to 
imports from Germany. No substantial increase in imports of 
cheaper dyes has occurred. 

Domestic production of dyes increased from an average of 94,000,000 
pounds during the period 1925-30 to 122,000,000 pounds in 1937. In 
the latter year five companies supplied approximately 87 percent of the 
output; the four largest ones, more than 75 percent of the output.^^ 
Two of the companies are subsidiaries of German and Swiss companies 
which were established in the United States after the sharp increase 
in duties. The European dye cartel composed mainly of German, 
Swiss, and French companies allocates markets, formulates price- 
policy, and serves as a clearing agency for technical information. 

In the domestic industry the larger companies make a full line of 
products and are in a position to withhold certain essential dyes 
unless buyers purchase all their requirements from them. The 
larger companies also sell substantial quantities of intermediates to 
the small companies which enables them to extend their control over 
the market. A large number of dyes, especially the newer ones, are 
controlled by patents. The existing duties are a partial support for 
monopolistic elements in the domestic industry. 

6. RUBBER AND LEATHER PRODUCTS 

The fifth group consists of 9 products in the rubber and leather 
industries which have a total value of $563,530,863.^^ In all cases 
imports are subject to duties. About 10.7 percent on a value basis 
was subject to duties of 30 to 59 percent; and 89.3 percent, to duties 
of 29 percent or less. The duties probably restrict appreciably 
imports of the following 7 products (13.4 percent of the total): Gutta- 
percha products, rubber thread, rubber combs, rubber boots and shoes, 
rubber nipples and pacifiers, goat and kid lining leather, and skivers. 
For these products, except the last three, removal or substantial 
reduction of duties would assist in offsetting monopolistic elements 
in the domestic industries (11.9 percent of the total, table 10). 



Table 10. — Sample of high industrial concentration, 9 rubber and leather p 
of the census of 1937, according to effectiveness of tariffs in 1937 


ro'iucts 


Probable effects of reduction or removal of duties 


Num- 
ber of 
prod- 
ucts 


Num- 
ber of 
com- 
panies 


Num- 
ber of 
plants 


Domestic pro- 
duction 


Value in 
1937 


Per 
cent 


Monopolistic elements in domestic industries partially 


4 

3 

2 

None 


44 

38 

48 


46 

39 
61 


$67, 459, 8.')4 

8, 268, 999 
487, 802, 010 


11.9 


Duties restrictive, but monopolistic elements not sig- 
nificant 


1.5 


Duties not restrictive, no effect on monopoly 


86.6 














9 


130 


146 


563, 530, 863 









" They are the Allied Dye & Chemical Corporation, du Pont, the General Aniline Works, the American 
Cyanamid & Chemical Corporation, and the Cincinnati Chemical Works. 

'2 A schedule of information for each product is given in appendix H, group E. Rubber and leather 
products are cla.ssified separately by the Census. 



CON€ENTKATION OF ECONOMIC POWER 21 

One of the above products, rubber thread, is controlled largely by- 
patents. It is used principally in the manufacture of elastic webbing, 
elastic yarn, elastic fabric, and golf balls. Domestic production of 
rubber thread was valued at $3,375,477 in 1937. This figure probably 
represents sales and excludes thread produced and manufactured 
into other products by the same company. Four companies ^^ in 
1937 probably produced more than 90 percent of the domestic out- 
put; the largest, probably more than 75 percent. The United States 
Rubber Co. holds patents for the manufacture of thread and yarn. 
It uses part of its output of rubber thread in the manufacture of 
"lastex" and golf balls; the remainder is sold to companies making 
similar products. It recently acquired one of the four companies, 
the Chatham Manufacturing Co. The Goodrich Co. and the East- 
hampton Rubber Thread Co. also hold important patents for the 
manufacture of rubber thread. The former pools its patents with 
those of the United States Rubber Co. and a few foreign companies. 
It uses all of its rubber thread in making partly finished golf balls, 
that is, finished except for the outer covering. The Easthampton Co. 
is owned by the United Elastic Corporation which also controls three 
companies manufacturing elastic webbing. A large part of its output 
is taken by these three companies. 

There are two international cartels: International Latex Products, 
Inc., Birmingham, England, and the International Rubber Thread 
Association, Zurich, Switzerland. The United States Rubber Co. 
and the Goodrich Co. belong to the first, and the Goodrich and 
Easthampton Cos. belong to the second. With the British Dunlop 
Co., the United States Rubber Co. jointly controls the Dunlop- 
Revere Thread Co. It is also financially interested m an Italian 
company. 

The domestic rubber thread industry is on an export basis. Im- 
ports which are dutiable at 25 percent ad valorem are negligible. 
Although removal or substantial reduction of the duty would probably 
not increase imports appreciably, prices would probably be lowered 
shghtly in order to discourage some foreign selling in the domestic 
market. In any event the tariff would be eliminated as a bargaining 
point in the allocation of international markets. 

Only two products in the leather industry are included in the 
special study. Approximately 50 leather products included in the 
high concentration class of the sample of 1,807 products were not 
analyzed here. They met the requirements of the special study with 
regard to value and concentration, but in many cases they repre- 
sented very minor parts of larger product-groups in the leather 
industry. Incomplete data, moreover, and the lack of correspondence 
between classifications of the census and the tariff made inadequate 
an analysis of larger-product groups. 

7. STONE, CLAY, AND GLASS PRODUCTS 

The sixth group consists of 27 products of the stone, clay, and 
glass industries which have a total value of $376,600,402.1* None of 
the products is free of duty. About 20 percent on a value basis was 

13 They are the United States Rubber Co., Easthampton Rubber Thread Co., Chatham Manufacturing 
Co., and the B. F. Goodrich Co. 
" A schedule of information for each product is given in appendix II, group F. 



22 CONCENTRATION OF ECONOMIC POWER 

subject to duties of 60 percent or more; 52 percent, to duties of 30 
to 59 percent; and 28 percent, to duties of 29 percent or less. The 
duties probably restrict appreciably imports of the following 15 
products (50.2 percent of the total): asbestos sliingles and lumber; 
asbestos roving, yarn, and cloth; asbestos packing; chemical porcelain 
and stoneware; gypsum plasters; Keene's cement; gypsum board; 
glass tableware (machine-made) ; scientific glassware ; spectacle glass ; 
sheet, plate, rolled, and structural glass; and porcelain insulators. 
For these products, except the last one, removal or substantial re- 
duction of duties w^ould assist in offsetting monopolistic elements in 
the domestic industries (48.5 percent of the total, table 11). Two 
produc'^'s, technical and scientific glassware, and spectacle glass, are 
part of the 32 products not included in the sample of 1,807 products. 

Table 11. — Sample of high industrial concentration, 27 stone, clay, and glass 
products mainly of the Census of 1937, according to effectiveness of tariffs in 1987 





Num- 
ber 
of 
prod- 
ucts 


Num- 
ber 
of 
com- 
panies 


Num- 
ber 
of 

plants 


Domestic production 


Probable effects of reduction or removal o (duties 


Value in 
1937 


Per- 
cent 


Monopolistic elements in domestic industries partially 


14 

1 
12 

None 

27 


140 

14 
172 


240 

15 

228 


$182, 694, 773 

6, 439, 283 
187, 466, 346 


48.5 


Duties restrictive, but monopolistic elements not signifl- 


1.7 




49.8 
















Total 


326 


483 


376, 600, 402 









In addition to the three asbestos products listed above four others 
are included in the group. Apparently duties on the imports of these 
four products do not restrict foreign selling in the domestic market. 
Several products of the gypsum industry and of the flat-glass industry 
are included in the sample. An analysis of these industries is given 
in chapters 3 and 4. 



8. NONFERROUS METALS AND PRODUCTS 

The seventh group consists of 10 metals and products of the non- 
ferrous industries which have a total value of $495,141,678.'^ One 
product, tin ingots and pigs, is free of duty or import tax (1.7 percent 
of the total). About 66 percent on a value basis was subject to duties 
of 30 to 59 percent; and 32 percent, to duties of 29 percent or less. 
Duties and import taxes probably restrict imports of the following 
products (82.3 percent of the total): blister and refined copper; brass 
and bronze tubing and pipe; aluminum ingots; aluminum ware; 
nickel alloys; and factory lighting fixtures. For these products, ex- 
cept the last one, removal or substantial reduction of duties and im- 
port taxes would assist in offsetting monopolistic elements in the do- 
mestic industries (81.5 percent, table 12). Two products, blister and 
refined copper, and aluminum ingots, partly belong with the 32 
products not included in the sample of 1,807 products, 

'« A schedule of information for each product is given in appendix II, group Q, 



CONCENTRATION OF ECONOMIC POWER 



23 



Table 12. — Sample of high industrial concentration, 10 nonferrous products mainly 
of the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of duties 


Num- 
ber of 
prod- 
ucts 


Num- 
ber of 
com- 
panies 


Num- 
ber of 
plants 


Domestic 

production 

value in 

1937 


Per- 
cent 


Monopolistic elements in domestic industries partially 
mitigated .- -- -- 


5 

1 
3 

1 


138 

10 
51 
28 


164 

10 
70 
31 


$397,719,363 

2,019,972 
86, 952, 343 
8,450,000 


81.8 


Duties restrictive, but monopolistic elements not signifl- 


.5 




17.7 




> 1.7 






Total 


10 


227 


275 


495,141,678 









» Percent free of duty is based on the total for the group; percentages for the remainder arc based on the total 
of dutiable products in the eroup. 

9. IRON AND STEEL PRODUCTS 

The eighth group consists of 27 products in the iron and steel in- 
dustries which have a total value of $918,106,807.'® In all cases, im- 
ports are subject to duties. About 4 percent on a value basis was 
subject to duties of 60 percent or more; 28 percent, to duties of 30 
to 59 percent; and 68 percent, to duties of 29 percent or less. The 
duties probably restrict appreciably imports of the following 10 prod- 
ucts (60.1 percent): semifinished rolled steel products; hot-rolled steel 
strips and flats; heavy steel structural shapes; universal steel plates; 
steel sheet piling; stainless steel plates, strips and flats; steel saw 
plates; steel cotton ties; black plate steel; firearms; muck and scrap 
bar; cast-iron pipe; metal furniture; solid metal window sash and 
frames; saddlery and harness hardware; and metal working files and 
rasps. For these products except the last 6, removal or substantial 
reduction of duties would assist in oft'setting monopolistic elements in 
the domestic industries (56 percent, table 13). 

Table 13. — Sample of high industrial concentration, 27 iron and steel products of 
the census of 1937, according to effectiveness of tariff in 1937 



Probable effects of reduction or removal of duties 


Num.ber 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic 

production 

value in 

1937 


Percent 


Monopolistic elements in domestic industries 


10 

6 

11 

None 


135 

213 

162 


247 

239 
316 


$514,475,021 

36, 892, 805 
366, 738, 981 


56.0 


Duties restrictive, but monopolistic elements 
not significant 


4 1 


Duties not restrictive, no effect on monopoly..,. 
Free of duty 


39.9 












Total 


27 


510 


802 


918,106,807 









LO. AGRICULTURAL AND AUTOMOTIVE 
PRODUCTS 



[ACHINERY AND RELATED 



The ninth group consists of 13 products, mainly agricultural and 
automotive machinery, which have a total value of $3,189,138,761.^^ 

" A schedule of information for each product is given in appendix II, group H. 

1' A schedule of information for each product is given in Appendix 11, Group I. This group includes 
transportation equipment which is classified separately by the census. 



257771— 41— No. IC 



24 



CONCENTRATION OF ECONOMIC POWER 



Two of the products, agricultural implements and wheel-type tractors 
are free of duty (8 percent of the total). About 2 percent on a value 
basis was subject to duties of 30 to 59 percent; 90 percent, to duties 
of 29 percent or less. Approximately on 99 percent of the dutiable 
products, the duties are not restrictive. Duties probably restrict im- 
ports of three products, Diesel engines (marine and auxiliary), marine 
outboard motors, and hand implements. Removal of the duties on 
the first two products would offset minor monopolitsic elements in 
the domestic industry (0.37 percent, table 14). 

Table 14. — Sample of high industrial concentration, 13 agricultural and automotive 
machinery products of the census of 1937, according to the effectiveness of tariffs 
in 1937 



Probable effects of reduction or removal of 
duties 


Number 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic pro- 
duction value 
in 1937 


Percent 


Monopolistic elements in domestic industries 
partially mitigated 


2 

1 
8 
2 


12 

44 
177 
42 


12 

49 
264 
44 


$10, 964, 604 

14, 817. 049 

2, 919, 363. 279 

243, 993, 829 


37 


Duties restrictive, but monopolistic elements 
not significant 


r, 


Duties not restrictive, no effect on monopoly. _ 


99.13 






Total 


13 


275 


369 


3, 189, 138, 761 









' Percent free of duty is based on the total for the group; percentages for the remainder are based on the 
total of dutiable products in the group. 

The agricultural-implement industry is an example of industrial 
concentration associated with monopolistic elements, but not asso- 
ciated with duties on imports. The early development of the indus- 
try in the United States, the need for adapting agricultural machinery 
to local conditions, the political power of farmers, and high costs of 
transportation largely account for the absence of duties on imports. 
The industry is on an export basis. Since 1 902 when the International 
Harvester Co. was formed by a merger of 5 leading producers, the 
industry has exhibited a high degree of industrial concentration. 
Antitrust prosecution of the International Harvester Co. which began 
in 1912 ended in 1918 with a consent decree for partial dissolution and 
modification of merchandising policies. In 1937 there were eight, 
large, full-line companies which produced nearly all of the main agri- 
cultural implements. Four of these companies, not always the same 
ones, produced from 77 to 91 percent of the output of certain types 
of farm machinery. The International Harvester Co. is the leading 
producer.^* 

11. MACHINE TOOLS AND EQUIPMENT 

The tenth group consists of 28 products in the machine-tool indus- 
tries which have a total value of $179,668,070.^^ Imports in all in- 
stances are subject to duties which are, with a few exceptions, 30 
percent ad valorem; all are in the range of 30 to 59 percent. Duties 
probably restrict imports of the following 10 products (31.3 percent): 
Cutting-ofF machines, drilling machines, drop hammers, portable elec- 

" A detailed analysis of the industry is given in a Fedora! Trade Commission Report, dated .TuneO, 1938. 
" A schedule of information for each product is given in appendix II, group. All the products of this 
group are classified as "machinery, not including transportation equipment" by the census. 



CONCENTRATION OF ECONOMIC POWER 



25 



trie drills, shear and punch presses, precision measuring tools, hobbing 
machines, threading machines, milling machines, and gear cutters. 
With regard to the last 5 products, removal or substantial reduction 
of duties would probably assist in bffsetting monopolistic elements 
in the domestic industries (17.3 percent, table 15). 

Table 15. — Sample of high industrial concentration, 28 machine-tool products of 
the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of duties 


Number 
of prod- 
ucts 


Number 
of com- 
panies 


Number 
of plants 


Domestic 
production, 
value in 1937 


Percent 


Monopolistic elements in domestic industries 


5 

5 

18 

None 


52 

70 
225 


52 

71 
231 


$31,191,986 

25, 063, 992 
123,412,092 


17.3 


Duties restrictive, but monopolistic elements not 
significant 


14 


Duties not restrictive, no effect on monopoly 

Free of duty 


68.7 












Total 


28 


347 


354 


179,668,070 









Because of the numerous special types of machine tools, fewness of 
producers in many instances is apparently not associated with signifi- 
cant monopolistic elements. The analj^sis, however, does not indicate 
the extent to which certain companies maj' be the principal producers 
of several types of equipment. In view of the basic importance of 
this industry to the economy of the country, additional information 
is needed with regard to its organization and its status in international 
trade. 



12. ELECTRICAL MACHINERY, EQUIPMENT, AND RELATED PRODUCTS 

The eleventh group consists of 46 products, mostly electrical ma- 
chinery and equipment, which have a total value of $1,157,447,593.^° 
Imports of these products, with one exception, typewriters, are subject 
to duties (96 percent of the total). About 65 percent on a value 
basis was subject to duties of 30 to 59 percent; 31 percent, to duties of 
29 percent or less. The duties probably restrict imports of the follow- 
ing 21 products (45.4 percent): Miniature electric meters, electric 
appliance and extension cords, brass shell sockets, flexible metal 
conduit, electric motor-control apparatus, dry batteries, flashlight 
cases. X-ray apparatus and tubes, electric furnaces and heaters, 
electric storage water heaters, electric generators and converters, 
transformers, watt-hour meters, incandescent filament lamps (small 
tungsten), carbon and graphite electrodes, electric household equip- 
ment, electric ranges, receiving sets, mechanically powered phono- 
graphs, telephone and telegraph equipment, and calculating machines. 
For the last 11 products listed, removal or substantial reduction of 
duties would probably assist in offsetting monopolistic elements in 
the domestic industries (39.1 percent, table 16). Three products — 
electrodes, lighting carbons, and sewing machines — are part of the 32 
products not included in the sample of 1,807 products. 

-» A schedule of information for each product is given in Appendix II, Group K. All the Products in 
this group are classified as "Machinery, not including transportation equipment," by the census. 



26 



CONCENTRATION OF ECONOMIC POWER 



Table 16. — Sample of high industrial concentration, 46 electrical products mainly 
of the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 


Number 

of 
products 


Number 
of com- 
panies 


Number 

of 

plants 


Domestic production 


duties 


Value in 1937 


Percent 


Monopolistic elements in domestic industries 
partially mititrated 

Duties restrictive, but monopolistic elements 
not significant 


11 

10 

24 

1 


195 

163 
422 
15 


230 

187 
456 
23 


$435,372,511 

69, 733, 179 
608, 842, 762 
43,499,141 


39.1 
6.3 


Duties not restrictive, no effect on monopoly... 
free of duty 


54.6 
1 4.0 






Total 


46 


795 


896 


1, 157, 447, 593 









' Percent free of duty is based on the total for the group; percentages for the remain ipr ire rased on the 
total of dutiable products in the group. 

The significance of duties for many of the products included in this 
group of the sample is difficult to estimate. Additional information is 
needed in order to shift the analysis from a product basis to an industry 
bass. A few companies and their subsidiaries are probably the same 
principal producers in several sections of the electrical industry. A 
high degree of concentration, moreover, in the domestic industry is 
associated with extensive interliational connections. The General 
Electric Co., for example, is the largest domestic producer of electric 
lamps and several other kinds of electrical equipment. ^^ It is also 
connected, directly and indirectly (International General Electric 
Co.) by financial interests and agreements with many important for- 
eign companies. Although duties in some cases do not apparently 
restrict imports, they may be significant in the international allocation 
of markets. Removal of duties in certain instances might not be 
followed by any appreciable increase in imports, but domestic prices 
might be lowered in order to discourage any attempt of foreign selling 
in the domestic market by independent companies or by potential 
violators of agreements. 



13. MISCELLANEOUS PRODUCTS 

The twelfth and last group consists of 36 miscellaneous products 
which have a total value of $1,353,707,072.22 imports of these 
products, with one exception, binder twine, are subject to duties 
(99.3 percent). About 68 percent on a value basis was subject to 
duties of 60 percent or more; 22 percent, to duties of 30 to 59 percent; 
and 9.3 percent, to duties of 29 percent or less. The duties probabl}^ 
restrict imports of 25 products (13.7 percent). For 13 of these prod- 
ucts, removal or substantial reduction of duties would assist in off- 
setting monopolistic elements in the domestic industries (9 percent, 
table 17). 2^ The group of 13 products includes four kinds of glue, 
press cloth of human hair, tooth brushes, sensitized photographic 
paper, photographic film, motion-picture projectors, temiis balls, golf 
balls, slide fasteners, and phonograph-record blanks. 

" The Singer Co., which controls probably 75 percent of the world production of sewing machines is 
another example. 

" A schedule of information for each product is given in Appendix II, Group L. Seventeen products', 
glues (1 kinds); briar pipes; chewing gum; binder twine; press cloth; wax crayons: tooth brushes; slide 
fasteners; buttons '^3 kinds); phonograph needles, record blanks, and disk records; are part of the 32 
products not included in the sample of 1,807 products. 

" The other 12 products are snutf, briar tobacco pipes, wax crayons, photographic A'-ray film, baseballs, 
golf club shafts, steel fishing rods, metal buttons, vegetable ivory buttons, bone and horn buttons, phono 
graph needles, and certain musical instruments. 



CONCENTRATION OF ECONOMIC POWER 



27 



Table 17. — Sample of high industrial concentration, 36 miscellaneous products 
mainly of the census of 1937, according to effectiveriess of tariffs in 1937 



Probable efifects of reduction or removal of 


Number 

of 
products 


Number 
of com- 
panies 


Number 
of plants 


Domestic production 


duties 


Value in 1937 


Percent 


Monopolistic elements in domestic industries 


13 

12 
10 

1 


150 

126 
818 
13 


174 

129 
865 
14 


$121, 493, 798 

63, 506, 049 

1, 160, 125, 549 

8, 581, 676 


9.0 


Duties restrictive, but monopolistic elements 


4.7 


Duties not restrictive, no effect on monopoly. . 
Free of duty 


86.3 
1.7 






Total 


36 


1, 107 1 1, 182 


1, 353, 707, 072 









> Percent free of duty is based on the total for the group; percentages for the remainder are based on the 
total of dutiable products in the group. 

One of the above products, slide fasteners (zippers), is an example 
of a high degree of industrial concentration accompanied by a recent 
increase in the duty on imports. In 1937 the industry consisted of 
five companies and six plants which produced an output valued at 
approximately $15,000,000.2^ 'Pl^p foi^^P largest companies accounted 
for more than 90 percent of the output; the largest company, for 
about 70 percent. Although basic patents expired in 1934, the largest 
company, Talon, Inc., still holds patents on manufacturing processes 
and improved features of slide fasteners. The duty on imports was 
increased from 20 to 40 percent ad valorem in the act of 1922; it was 
increased to 45 percent in the act of 1930. Under the flexible pro- 
vision of the act of 1930 (sec. 336) the duty was increased to 66 per- 
cent ad valorem in July 1936. In 1937 imports were valued at 
$869,829. Imported slide fasteners consist mainly of common types 
and are used in cheap merchandise. A substantial reduction of the 
duty would increase imports, would lower domestic prices, and would 
assist in offsetting monopolistic elements in the domestic industry. 

14. SUMMARY 



A summary of the 31' 
is presented in table 18. 



products included in the foregoing 12 groups 



Table 18 (summary). — Sample of high industrial concentration, 317 products 
mainly of the census of 1937, according to effectiveness of tariffs in 1937 



Probable effects of reduction or removal of 


Number 

of 
products 


Number 
of com- 
panies 


Number 
of plants 


Domestic production 


duties 


Value in 1937 


Percent 


Monopolistic elements in domestic industries 
partially mitigated 

Duties restrictive, but monopolistic elements 
not sicnificant 


117 

74 
114 
12 


1,448 

2,390 

164 


2,500 

1,577 

2,977 

213 


$2, 635, 190, 632 

660, 572, 835 

6,198,504,245 

386, 529, 366 


27.7 
7.0 


Duties not restrictive, no effect on monopoly. . 
Free of duty 


65.3 
3.9 






Total 


317 


5, 890 7. 267 


9, 880, 797, 078 


(>) 








' 





' The first 3 percentages are based on the total of dutiable products, namely, .$9,494,267,712. The percent 
free of duty is based on the total for all 317 products. 

Bource: Census of Manufactures, 1937. Foreign Commerce and Navigation of the United States. Tem- 
porary National Economic Committee Industrial Concentration Study. 



2* One or two minor producers are probably not included in the census data. 



28 CONCENTRATION OF ECONOMIC POWER 

Only 12 products were free of duty — 3.9 percent of the total value 
of the group. Of the remainder, 14.7 percent were subject to duties 
of 60 percent or more ad valorem or equivalent; 27.5 percent, to duties 
of 30 to 59 percent; and 53.9 percent to duties of 29 percent or less. 
Of these dutiable groups, however, duties probably had little or no 
effect on imports for 65.3 percent of the total value. Although duties 
were restrictive for 34.7 percent of the dutiable products, removal or 
reduction of duties would probably offset monopolistic elements in 
domestic industries for 27.7 percent of the dutiable group. 

The analysis indicates no close connection between tlie height of 
duties and their restrictive effects on imports. It also indicates no 
close connection between a high degree of industrial concentration 
and restrictive tariffs. The index, moreover, of high industrial con- 
centration (4 companies or less supply 75 percent or more of the 
output of a given product), calculated on a product basis rather than 
an industry basis, is frequently of no practical significance as an 
indicator of monopolistic elements. Nevertheless, the analysis does 
show that for a substantial portion of the products, removal or 
reduction of restrictions on imports would at least partially offset 
monopolistic elements in domestic industries. 



CHAPTER III 
THE GYPSUM INDUSTRY 

1. CRUDE GYPSUM AND PRODUCTS OF GYPSUM 

Gypsum in the crude state generally occurs in rocklike, impure 
deposits/ large and small, in many parts of the United States,^ and 
in other countries. About 20 percent of the domestic consumption 
of crude gypsum is used in a crushed, raw form by the Portland cement 
industry. A small percentage of crude gypsum (about 2 percent) is 
ground to a powder and is used mainly in agriculture as a "land plaster" 
(for the production of peanuts) ; minor uses are as a filler is paper and 
cloth, for modeling, and as a paint pigment. 

The bulk of crude gypsum for domestic consumption is reduced to a 
powder and calcined, that is, roasted at low temperatures until three- 
fourths of the combined water is driven off. Calcined gypsum, com- 
monly known as plaster of paris, without further manufacture is con- 
fined to a few special uses, such as bedding in the grinding of plate 
glass, gaging plaster for a lime putty coat, and for molding purposes 
generally. Nearly all calcined gypsum produced in the United 
States from both domestic and imported crude is an intermediate 
product in the manufacture of finished building materials. 

The most important building materials made from calcined gypsum 
are wall plasters, wallboard, and plaster board (a substitute for wood 
or metal lath) . These products are sold under many trade names, such 
as sheetrock, gyprock, and Rocklath. Fiberboard, such as Beaver- 
board, Upson board, and Celotex, which is used for similar purposes, 
is not a gypsum product. Some hard-finish plasters or cements are 
made from pure raw gypsum calcined at higher temperatures than for 
ordinary plaster of paris. Keene's cement is the most important of 
the hard-finish plasters. Gypsum, sufficiently pure for its manu- 
facture, is localized largely in the State of Kansas. 

2. TARIFF HISTORY 

Since 1846 imports of certain products of the gypsum industry have 
been restricted by tariffs. The peak of restriction was reached in the 
Tariff Act of 1897 when crude gypsum was made dutiable at $0.50 
per ton and ground or calcined gypsum at $2.25 per ton. 

Crude gvpsum. not ground, was dutiable at 10 percent ad valorem 
under the ^ Tariff Act of 1913. In the acts of 1922 and 1930 (par. 
1743) it was made free of duty. Since crude gypsum loses about 15 
percent of its weight when calcined, the crude product is usually not 
shipped long distances. Deposits in New York State, however, are 

■ Gypsum when crystalline, white, and nearly transparent is called selenite; when flne-grained, white or 
delicately tinted, alabaster; when fibrous, satin-spar. These types are usually very pure. Some synthetic 
gypsum is made as a byproduct of phosphoric acid manufacture in New Jersey and Florida. 

2 Approximately 80 percent of domestic, crude production is in 6 States: New York, Iowa, Michigan, 
Texas, Ohio, and Nevada. 

29 



30 OONCENTRATION OF ECONOMIC POWER 

400 miles inland from the main eastern markets and plants making 
gypsum products which are located on or near the Atlantic seaboard 
because of lower transport costs import their crude rock from Canada. 
Plants in California and Washington import crude from Mexico. 
The United States Gypsum Co. is the most important producer of 
domestic and Canadian gypsum. It is also the largest producer in 
western New York and has opposed the request for a tariff on crude 
gypsum by other operators in that region. The duty-free status of 
crude gypsum was bound in the trade agreements with Canada (effec- 
tive January 1,1936 and 1939). 

Gypsum, ground or calcined, was dutiable at 10 percent ad valorem 
in the Tariff Act of 1913. In the acts of 1922 and 1930 (par. 205 (a)) 
it was made dutiable at $1.40 per ton. The equivalent ad valorem 
rate of the specific duty on ground gypsum averages slightly above 
10 percent; on calcined gypsum, slightly below 10 percent. Imports 
are very small, chiefly from the United Kingdom, and consist mainly 
of uncommon or special grades of calcined gypsum. The duty of 
$1.40 per ton was bound in the trade agreement with the United King- 
dom (effective January 1, 1939). 

Gypsum products prepared for building purposes (plasters, wall- 
board, plasterboard, etc.) were dutiable at 25 percent ad valorem in 
the Tariff Act of 1913 In the acts of 1922 and 1930 (par. 205e) they 
were made dutiable at 35 percent. Imports are negligible (chiefly 
from Japan, the United Kingdom, Germany, and France) and con- 
sist of prepared plasters, a few blocks and tile, and specialty items. 

Keene's cement and other gypsum cements were dutiable at 10 
percent ad valorem in the Tariff Act of 1913. In the acts of 1922 and 
1930 (par. 205c) they were made dutiable at $3.50, $5, $10, and $14 
per ton (long) depending upon the value.^ Imports are very small, are 
confined primarily to the higher-value brackets, and are supplied 
primarily by the United Kingdom. The equivalent ad valorem rate 
of the specific duties averages about 30 percent. 

3. DOMESTIC PRODUCTION, IMPORTS, AND EXPORTS 

The domestic production of crude gypsum increased rapidly after 
1898 when gypsum wall plaster began to replace lime plaster. A 
decline occurred during the World War period, but the upward trend 
was resumed sharply in 1923. Building activity was improving and 
two new gypsum products, wallboard and plasterboard, were gaining 
general acceptance. In 1925, the record high year, 5,678,302 tons of 
crude gypsum were mined in the United States. A depression low of 
1,335,192 tons occurred in 1933. Since 1933 domestic production 
has increased to 3,058,166 and 2,684,205 tons in 1937 and 1938, 
respectively, with an estimated value of $4,782,502 and $4,721,674. 

Imports of crude gypsum increased very slowly during the first 
period mentioned above. Imports did not reach the pre-war level 
until 1923 when 448,129 tons of crude gypsum were unported. Al- 
though domestic production was declining from 1925 to 1929, imports 

' Valued at $14 per ton or less the duty was $3.50; above $14 aud not over $20 per ton, duty of $5; above 
$20 and not over $40 per ton, duty of $10;' and valued above $40 per ton, duty of $14. 



CONCENTRATION OF ECONOMIC POWER 31 

continued to increase and reached a peak of 1,036,385 tons valued at 
$1,060,874 in 1929. This increase was due to an expansion in the 
number and capacity of processing plants on the Atlantic seaboard 
which use Canadian gypsum. A depression low for imports of 
359,470 tons occurred in 1933. Since 1933 imports of crude gypsum 
have increased to 897,484 and 789,429 tons in 1937 and 1938, respec- 
tively, valued at $854,835 and $772,026. 

Although a special freight rate on crude gj^psum of $2.50 ($1 less 
than the regular rate) is granted by railways on shipments from western 
New York for export, exports of crude gypsum are negligible. 

Approximately 80 percent of the domestic and imported crude 
gypsum is either ground or calcined; about 20 percent is used in a 
crushed form by the cement industry.* Only a small percentage of the 
combined supply of crude (about 5 percent) is sold in a ground or 
calcined form; slightly more than 2 percent in a ground form (land 
plaster, fillers, etc.); approximately 3 percent in a calcined form 
(glass bedding, gaging, moldmg, dental plasters, etc.). Nearly all 
of the remaining 75 percent of the total crude supply is ground, cal- 
cined, and fabricated into building materials by concerns which sell 
the finished gypsum building products. 

Domestic production and sale of ground and calcined gypsum have 
not varied greatly in recent years. Sales of the ground product 
amounted to 90,821 and 82,503 short tons, respectively, in 1937 and 
1938 valued at $458,237 and $442,656. For the same years sales of the 
calcined products amounted to 125,853 and 94,248 short tons valued at 
$1,363,130 and $1,154,517. Prior to 1928 a larger proportion of the 
calcined product was made from imported crude than in recent years. 

Imports of ground and calcined gypsum are small relative to the 
domestic production and sale. In 1937 and 1938 ground imports 
amounted to 1,711 and 1,486 short tons, respectively, valued at $22,165 
and $17,674. Calcined imports for the same years totaled 353 and 
372 short tons valued at $7,917 and $7,649. Imports in 1925-29 
were about 3 times the present imports; in 1914 about 5 times. 
Domestic sale of ground gypsum is largely for agricultural uses, whereas 
imported ground gypsum is not used for agriculture. Probably no 
imported calcined gypsum is used by plate-glass plants. Imports of 
calcined gypsum consist largely of special grades and types. 

Exports of gypsum, ground or calcined, are not recorded separately, 
but they probably do not exceed imports. 

The main products of the gypsum industry, as indicated previously, 
are calcined, fabricated materials for use in the building industry. 
Sales data for these products are given below (table 19). Production 
and sales follow very closely changes in building activity. One 
exception, however, has appeared since 1934, namely, plasterboard, 
the sales of which have increased sharply in recent years. The pro- 
duction and sales level for the other products in 1937 and 1938 is 
approximately that of 1930 and 1931, but about 50 percent below the 
1928 level. 



« In 1937 sales (f. o. b. factories) total 770,004 tons valued at $1,462,469; in 1938 they totaled 674,062 tons 
valued at $1,238,715 (Mineral Yearbook 1939, U. S. Bureau of Mines). 



32 CONCENTRATION OP ECONOMIC POWER 

Table 19. — Gypsum building products {except Keene's cement) sold in the United 
States, 1937 and 1938 i 



Product 


1937 


1938 




Short tons 


Value 


Short tons 


Value 




1, 634, 890 
241, 096 
469, 970 
137, 006 


$15,479,391 

8, 349, 810 

9, 604, 372 
1, 552, 248 


1, 461, 467 
269, 949 
594, 659 
112, 477 


$13, 543, 442 


Wallboard ^ 


7, 921, 400 




10, 287, 935 


Tile 


1, 300, 830 








2, 482, 962 


34, 985, 821 


2, 438, 552 


33, 053, 607 







> Sales are f. o. b. factories. Data for prior years are not comparable. Keene's cement is given separately 
below. 

> Weights are estimated by producers. 

Source: Compiled from statistics of the U. S. Bureau of Minos. 

Imports of gypsum building materials are insignificant. They have 
increased since 1932, but the totals for 1937 and 1938 v/ere only 
$59,735 and $31,268, respectively.^ Imports consist of small amounts 
of prepared plasters, a few blocks and tiles, and a variety of specialties. 

Exports of gypsum building materials exceed imports, but they are 
not large as compared with domestic sales. Exports of plaster board 
and wallboard amounted to $96,019 and $88,822 in 1937 and 1938, 
respectively. These products are exported to many markets, but the 
Philippine Islands is the chief market. Exports were much larger in 
1929 ($442,983) and considerably less in 1933 ($36,057) than in recent 
years. Exports of plaster, calcined, and manufactures totaled 
$61,383 and $71,914 in 1937 and 1938, respectively.^ Canada is an 
important market for these products. Exports in 1929 amounted to 
$481,316 and then dechned to a depression low of $72,094 in 1932. 
Prior to 1933 Canada, the United Kingdom, and New Zealand w^ere 
important markets for American exports of wallboard and plaster 
board. In 1932-33 Canadian plant capacity was enlarged for the 
manufacture of these products. In 1934 a large plant near London 
under British-Canadian ownership, equipped with modern American 
designed machinery, began operations. These developments account 
in part for the present low level of American exports. Since plaster 
deteriorates in 4 to 6 months, it is not usually shipped long distances 
nor stored in large quantities. 

Keene's cement, while in no sense as important a gypsum cement 
as plaster of paris, is a manufactured building material of sufficient 
importance for separate analysis. It was originally manufactured 
under English patents which have long since expired. Domestic 
manufacturers usually produce several grades, biit the grade used for 
artificial marble finishes is the most important one. In 1933 five 
companies, several of which produced other gypsum products, manu- 
factured Keene's cement, but 1 company considerably outranked 
the others. Approximately the same situation had prevailed for 
many vears. Domestic sales increased from 15,395 short tons 
($200,360) in 1919 to a peak of 54,020 tons ($848,504) in 1928. Sales 
then dechned to a depression low of 13,529 tons ($194,075) in 1933. 

« These totals do not include imports of statues, statuettes, and bas-reliefs of which plaster of paris is the 
component material of chief value. A few of these items might be classified as building materials, but most of 
them are art objects. Imports, moreover, in this class arc very small. The duty was reduced from 60 to ; 
percent ad valorem in the French trade agreement (June 15, 1936). 

« Includes indeterminable amounts of calcined gypsum (plaster of paris). 



CONCENTRATION OF ECONOMIC POWER 33 

Since that time sales have increased to 34,260 tons ($530,863) and 
23,496 tons ($366,813) in 1937 and 1938, respectively. Keene's 
cement, unlike ordinary plasters, can be shipped and stored for years 
without deterioration. 

Imports are negligible as compared with domestic production. In 
1919 they totaled 187 short tons ($5,984). For the 5-year period 
prior to the World War they averaged about 1,300 short tons. 
Imports increased steadily after 1919 and reached a peak of 1,146 short 
tons ($37,175) in 1930. Since that year imports have decliued 
irregularly; they totaled 25 tons ($675) and 6 tons ($130) in 1937 and 
1938, respectively. Transportation charges from Kansas, center of 
the domestic industry, to New York City, are about the same as 
ocean rates from the United Kingdom. Apparently the duty is quite 
significant. 

4. TRENDS IN CONCENTRATION 

In 1902 there were 62 active mines and quarries in the United States 
and 45 operators producing domestic crude and calcined gypsum.^ 
One operator, the United States Gypsum Corporation, ow^ned 16 
of the active units. Another multiple-plant operator, the Acme 
Cement Plaster Co., had 3 active units. About 17 mines or quarries, 
mostly owned by individuals, were idle during the .year. In the active 
group, 13 individual enterprises and 6 firms produced only 3.6 percent 
of the crude gypsum. Probably the United States Gypsum Corpora- 
tion produced more than half the total output. 

The latter concern had been incorporated (New Jersey) in 1901 as a 
merger of 26 independent producers who operated in the main gypsum 
producing States.* In 1903 the official report read as follows: "An 
attempt has been made to govern the industry in a largo section of the 
country by the organization of the United States Gypsum Co., which 
controls the greater proportion of the deposits in Iowa, and in part 
also those which have been developed in Kansas, Michigan, New 
York, Oklahoma, and Ohio." ® One year later the report was that 
"the United States Gypsum Co. continues to be the largest holder of 
gypsum mills and properties." '° In the interim 1 or 2 units 
had been dropped, several operations had been consolidated, at least 
10 plaster-mixing plants had been built or acquired, and several 
important mining enterprises in New York and Ohio had been added. 
In 1904 it operated 35 enterprises nearly all of which engaged in the 
production and fabrication ot gypsum. ^^ The combination was 
primarily horizontal, but the nature of the industry at this stage of its 
development also made it a compact vertical combination. 

As a result of the financial stringency in 1907 competition of a kind 
not previously experienced ensued, but the old order apparently 
quickly reappeared. The official report was that "prices were 
seriously affected by the industrial depression, it is true, but the 
general decrease in price is more directly due to the very active 
competition that is becoming characteristic of the gypsum business. 
Keen competition involving price cutting, introduction of specialties, 
more liberal advertising, and an aggressive campaign for trade on the 

' Special Reports of the Census OfHce, Mines and Quarries, 1902, pp. 903-904. 
' U. S. Geological Survey, Mineral Resources of the United States 1901, p. 844. 
' U. S. Geological Survey, Mineral Resources of the United States 1903, p. 1035. 
'» U. S. Geological Survey, Mineral Resources of the United States 1904, pp. 1039-1040. 
" One plant is listed as a chemical plant but it may have supplied chemicals for the manufacture of Keene's 
cement. Another plant may have used some gypsum for the manufacture of mineral paint. 



34 CONCEN'TRATION OP ECONOMIC POWER 

part of the well-established companies have resulted in the suspension 
of many of the smaller plants not physically or financially fitted to 
withstand the strain. Concentration of interests has naturally fol- 
lowed. Many small plants, meritoriously situated, with good supplies 
of raw material, have been taken over through lease or purchase by 
firms that control groups of mills." ^^ The multiple-plant companies 
in 1908, other than the United States Gypsum Corporation, were the 
Acme Cement Plaster Co. and the American Cement Plaster Co., 
each of which controlled about six enterprises in the gypsum industry. 
The United States Gypsum Corporation, however, continued to con- 
trol about half of the domestic production. A trade association 
for the industry, the Gypsum Industries Association (New York), was 
organized in 1913. 

Only 25 operators reported to the Census in 1919 for 47 enterprises 
and 48 muies. With regard to concentration of control the census 
notes that "three operators reported a majority of the enterprises, 
and each of these three operated in various parts of the United States. 
As the industry is so largely controlled by a few operators, analysis 
of the statistics cannot be presented in detail without disclosure of 
individual operations. "^^ From the data given, however, and from 
the information supplied in the Mineral Yearbooks, the 3 companies 
already mentioned, probably reported for 24 enterprises (12, 6, and 6, 
respectively) which were located in the mam producing areas." The 

3 large producers probably accounted for 85 percent of the total value 
of gypsum products. In terms of a rough estimate, the United States 
Gypsum Corporation produced one-half of the crude output in New 
York, Iowa, Michigan, Virginia, and Ohio, and one-third of the out- 
put of other Western States, or approximately 45 percent of the total 
domestic output. Of the 47 enterprises reported in 1919, 6 may be 
described as very large, ^^ 8 as large, 15 as medium, 14 as small, and 

4 as very small. The foregoing analysis is prhnarily in terms of 
domestic production of crude gypsum or calcined gypsum made from 
domestic crude; operators usmg imported gypsum are not included. 

A more complete picture of the industry may be presented for the 
year 1925,^'' in which the peak domestic production of crude gypsum 
was recorded. Reports were received for 61 operating units of which 
the United States Gypsum Corporation (reorganized in 1920 under 
an Illinois charter) controlled 17, the Beaver Products Co. (formerly 
American Cement Plaster Co.) controlled 6, and the Certain-teed 
Products Corporation (formerly Acme Cement Plaster Co.) controlled 
6. Although more units were in operation, apparently the United 
States Gypsum Corporation had not lost its relative position in the 
mining of crude gypsum as compared with operations in 1919. In 
the interim it had acquired important mining properties in New York, 
California, and Texas. It was 1 of the 5 enterprises which pro- 
duced Keene's cement and probably accounted for a substantial share 
of the total sales. In the gypsum products field as a whole, it was 
the only concern which produced a full line; tliat is, plaster, wallboard, 
block, "tile, and Keene's cement. In addition in 1924 it had entered 

" U. S. Geological Survey, Mineral Resources of the United States, 1908, pt. II, p. 621. 

13 Fourteenth Census of the United States, 1920, vol. XI, Mines and Quarries, 1919, pp. 420-28. 

i< The census report excludes mixing plants and other incidental enterprises, as well as nonproducing 
enterprises. 

'« That is, they employed more than 100 wage earners, each, and as a group accounted for 44 percent of 
the total average number of wase earners. 

'6 Mineral Resources of the United States, pt. II, 1925. 



CONCENTRATION OF ECONOMIC POWER 35 

the importing-manufacturing segment of the industry by acquiring 
tlie old firm of J. B. King, Staten Island, N. Y. In 1925 it 
was one of seven import-manufacturers of gypsum. The Certain- 
teed Corporation produced plaster, block, tile, and Keene's cement. 
The Beaver Products Corporation produced plaster, wallboard, 
blocks, and tile. Of the 61 operating units mentioned above, 27 were 
one-mine or one-mine-plant units. The majority of them produced 
only plaster. In addition to the above domestic mining-manufac- 
turing units and the import-manufacturers, there were about 11 com- 
panies in 1925 which purchased their raw material and speciahzed 
in the manufacture of gypsum board. The entrance of the United 
States Gypsum Corporation into the import-manufacturing segment 
of the industry which supplies the important eastern markets is the 
most significant development of the period under review. 

The next few years were filled with varied and vital changes in the- 
organization of the gypsum mdustry. Although horizontal integra- 
tion continued, especially in the import-manufacturing segment, ^the 
emphasis shifted to a more comprehensive type of vertical integration. 
These changes were accompanied by a price-cutting phase in the 
earlier stage (1926-28) and by a price-maintenance phase in the later 
stage (1929-35). The total number of operating units in the domestic 
crude and calcined gypsiuu industry remained approximately the 
same, but the larger concerns acquired more units and built new ones 
which offset the ones that were dissolved rather than transferred. 

The United States Gypsum Corporation acquired in 1926 through 
its new subsidiary, Canadian Gypsum Co., Ltd., an important mining 
property at Wentworth, Nova Scotia. In 1930 it added another 
important unit at Hillsborough, New Brunswick (Albert Manufac- 
turing Co.) and later a third at Hagersville, Ontario. In the United 
States in 1929 it built or purchased gypsum manufacturing plants at 
Boston and Philadelphia which along with the one at Staten Island 
use imported crude (via Gypsum Packet Co., a subsidiary) from the 
Canadian properties. It also built new manufacturing plants at East 
Chicago and Detroit which receive crude sliipments from the Michigan 
properties at Alabaster. In addition it acquired the Oakfield plant 
(New York) of the Niagara Gypsum Co. and the manufacturing 
(wall board) plant of the Reeb Corporation at Buffalo, N. Y. 

Prior to 1930 this corporation produced a full line of g\'psum 
products in nearly all important marketing areas with only a few 
related products, such as lime, paint, and paper. ^^ In 1930 it acquired 
a more comprehensive group of related building materials, such as 
expanded metal (lath and sash), asphalt roofing, and fiber insulating 
board. Six plants were acquired in that year and 14 more were 
added during the followmg 7 years (two were located in Canada) . 

The Certain-teed Products Corporation, on the other hand, devel- 
oped in part from a reorganization (1917) of the General Roofing 
Manufacturing Co. In 1923 when it acquired the Acme Cement 
Plaster Co., it also added two concerns manufacturing linoleum and 
inlaid materials. The acquisition in 1928 of the Beaver Board Co., 
as well as the Beaver Products Co. (successor of the American Cement 
Plaster Co.), added fiber board to its fine of building products. The 
addition of the Beaver Products Co. completed for it the line of 
gypsum products. Although Certain-teed is not in the import- 

1' Paper for sacks and for use in the manufacture of gypsum board. 



36 CONCENTRATION OF ECONOMIC POWER 

manufacturing branch of the gypsum industry, it is in part a com- 
bination of two former multiple-plant gypsum companies and an 
im])ortant domestic producer. 

The National Gypsum Co., incorporated in Delaware in 1925 
apparently began as a merger of four gypsum mining and manufac- 
turing companies and several lime companies. In 1934 it acquired a 
metal lath plant. In the following year it substantially extended its 
gypsum properties by purchase of the Universal Gypsum & Lime Co. 
with plants in Iowa and New York. The next year an important 
invasion into the import-manufacturing branch of the industry 
occurred. Three large Canadian mining properties in Nova Scotia 
(Atlantic Gypsum Products Co.) and two gypsum manufacturing 
properties in New Hampshire and New York were acquired. The 
Canadian mining properties along with prior acquisitions in Canada 
of fiber and insulating board plants were consolidated into a Canadian 
subsidiary — the National Gypsum Co., Ltd. With the addition of an 
insulating board plant in Alabama the National presented, with the 
exception of Keene's cement, a full line of gypsum and related products 
in the important marketing centers. 

During the period under review the United States Gypsum Cor- 
poration remained the largest organization in the industry, but it 
probably lost part of its former relative position. The above three 
organizations, however, probably controlled at least 75 percent of the 
domestic gypsum mining and manufacturing industry as well as a 
substantial portion (probably more than half) of the Canadian in- 
dustry. Apparently, no great struggle on a price basis for markets 
occurred with the emergence of two important rivals for the United 
States Gypsum Corporation. 

The official comment, for example, in 1931 substantiates the above 
point. The period 1926-28 "was characterized by severe price com- 
petition brought about by expansion in plant capacity and reorganiza- 
tion of markets. During this period the existing price structure 
became impaired, and the margins between prices and costs were 
greatly reduced if not virtually eliminated. Spurred by necessity, 
costs were reduced, and one by one the companies revised their prices 
so that by the end of 1929 they once more allowed a margin of profit. 
In 1930, as the amount of new building construction dropped, sales 
efforts were directed toward repair work, and when even this failed to 
check the shrinkage in volume of business, prices instead of being 
slashed continued their upward trend. There was no serious evidence 
of price cutting during 1931, although indications were that some 
producers intended to absorb the recent increase in freight rates on 
gypsum products. "^^ By the end of 1929, as indicated above, the 
three large combinations had completed their major consolidations 
and apparently a new price structure quickly appeared which was 
successfully maintained in a declining market. 

The above marketing conditions persisted throughout the remainder 
of the period under review. Although production and sales declined 
drastically, prices were maintained. Accordingly, in 1932 the report 
was that "despite business conditions, particularly in building, the 
gypsum industry maintained prices on crude and calcined gypsum 
products in 1932, and in specific instances prices were slightly in- 
creased. The unit value of calcined gypsum products sold by pro- 

>« Mineral Yearbook, 1931, pt. II, p. 191; Mineral Yearbook, 1935, p. 955. 



CONCENTRATION OF ECONOMIC POWER 37 

ducers advanced to $13.74 per ton and represented an increase of 
$1.67 over the previous record value reported for 1931. Trade 
journal quotations during 1932, however, showed little or no change 
over the preceding year."^^ At the beginning of 1935 a shght down- 
ward revision of prices was reported for the New York City area.^° 

Recent developments in the gypsum industry emphasize in a 
significant way the foregoing historical analysis of organizational 
trends. The United States Gypsum Corporation in 1936 acquired the 
well-known properties of the Jumbo Plaster & Cement Co. at Sigurd, 
Utah; in 1938 those of the Nephi Plaster & Manufacturing Co. at 
Nephi, Utah. The latter added substantially to the corporation's 
position in the manufacture of Keene's cement and both properties 
gave it probably more than two-thirds of the gypsum output in Utah.^^ 
In the import-manufacturing branch of the industry a new plant of 
the corporation began operation in 1939 at Jacksonville, Fla. 

The National Gypsum Co. in 1938 purchased two properties, 
Best Bros., and Oakfield Gypsum Products Co. The plant of the 
latter company was immediately dismantled. The former company 
is one of the oldest manufacturers of Keene's cement in the United 
States. In the import-manufacturing branch of the industry a new 
plant of the company began operation in 1939 at Savannah, Ga. 
Although the development with regard to location of properties and 
products of the National Gypsum is similar to that of the United 
States Gypsum Corporation and would apparently offer keen price 
competition in many marketing areas, the market situation for several 
gypsum products seems to be different. The former company uses 
several patented processes which are covered by license contracts 
which contain price-control provisions, that is, provisions not to sell 
below a minimum fixed by the licensor. Two of the most important 
patents expire in January 1947 and in October 1952. A number of 
such license agreements are contracted with the United States Gypsum 
Corporation.^^ The manufactm-e of gypsum wallboard, an important 
building product, is probably included in the above agreements. 
Nearly all manufacturers of gypsum building products probably have 
similar agreements with the United States Gypsum Corporation, 
Celotex will manufacture gypsum wallboard and plasterboard under 
United States Gypsum Corporation's patent-license arrangements. 

The Certain-teed Products Corporation is now apparently controlled 
by the Celotex Corporation, the largest manufacturer of structural in- 
sulation and acoustical material in the world. ^^ The latter acquired 
109.360 common shares and 9,496 preferred shares of the former in 
1937, partly by an exchange of stock and partly on a cash basis. In 
1939 it added 43,744 more shares of Certain-teed's common stock (a 
total of 23 percent of the outstanding common"*. Celotex had already 
acquired in 1937 a controlling interest in the American Gypsum Co., 
Port Clinton, Ohio, and the entire capital stock of the Gulf Gypsum 
Co., at Falfurias, Tex. In 1938 Celotex made a 15-year agreement 
with Certain-teed to use its excess plant capacity for the manufacture 
of roofing material, paper board, and gypsum products which would 
be sold under the Celotex label. Certain-teed has reciprocal rights in 

1" U. S. Bureau of Mines, Minerals Yearbook, 1932-33, p. 618. 

2» IT. S. Bureau of Mines, Minerals Yearbook, 1935, p. 955. 

2' A third company more recently developed than the other two operates in the State. 

22 Standard Statistics. 

23 Standard Statistics. 



38 CONCENTRATION OF ECONOxMIC POWER 

ccrtaiii Colotcx plants. In 1939 Colotex contracted to make for 
Certain-teed a line of insulation board products which would replace 
another manufacturer's line wliicli Certain-teed foimerly sold. 
Although the combination of Celotcx and Certain-teed provides a 
strong potential competitor in the gypsum and related products in- 
dustry, the actual influence with regard to prices is somewhat uncer- 
tain. Since the combination is not in the import-manufacturing seg- 
ment of the gypsum industiy and not extensively engaged in the 
manufacture of Keene's cement, any substantial price-competition 
influence is likely to be exerted in restricted marketing areas with 
regard to plaster, plasterboard, fiberboard (all areas), roofing material 
(all areas), and structural insulation products (all areas). Apparently 
the combination is not a producer of expanded metal products. 
Gypsum wallboard is not mentioned because its status with regard to 
patented processes and substitutes probably excludes it from the 
influences of a highly competitive market. 

No satisfactory analysis of the price situation at the present time 
can be made with the available data. Costs are known to differ sub- 
stantially in the mining branch of the gypsum industry, especially in 
different localities, but adequate data are not available. The re- 
mainder of this section of the report on gypsum, therefore, is confined 
to a few comments on price policy, that is, multiple basing points, 
substitutes, and available recent price trends, and on the probable 
position of the three largest producers in the present structure of the 
gypsum industry. 

The policy of basing freight charges on certain production centers 
is apparently widespread, if not universal, in the gypsum products 
industry. An informal understanding seems to prevail that large 
milling centers are to be used as basing points and that within a 
given marketing area delivered prices are to be kept relatively uniform 
regardless of the actual transportation cost incurred on shipments b}^ 
mills outside the given basing-point area. The establishment of the 
import-manufacturing gypsim plants at Jacksonville and Savannah 
raises an important price problem with regard to basing points. 
There are no workable gypsum deposits in the Southeastern States, 
and formerly this district has been supplied on the basis of freight 
charges from Plasterco, Va., the nearest mill, to such points as Atlanta, 
Savannah, Montgomery, etc. There is a small production of syn- 
thetic gypsum at Tampa, Fla., and this supply may be augmented by 
Canadian imports. The decision with regard to a basing point for 
this area is extremely important. Trucking, of course, plays an im- 
portant role in delivering gypsum products from mills to dealers 
The relationship between this type of transportation cost and deliv- 
ered prices within different basing-point areas is not known. No in- 
formation, moreover, is available with regard to the degree of observ- 
ance in individual sales of the multiple basing-point system. Many 
possibilities exist for nominal observance and partial disregard. 

The situation with regard to substitutes for wallboard and plaster- 
board is significant for an interpretation of the price behavior of 
gypsum products. There is a noticeable and roughly maintained dif- 
ference between the average sales value of wallboard and plasterboard 
which usually amounts to $8 or $10. The former is the .more expen- 
sive, partly because it contains as a group some veiy elaborately fin- 



CONCENTRATION OF ECONOMIC POWER 39 

ished wallboard, whereas the latter is a more uniform product; partly 
because more expensive paper is used for finishing wallboard; and 
partly because waste and spoilage is more frequent in the manufacture 
of wallboard since it is made in wider sections and the outer surface 
must be free of imperfections or blemishes. Although the sum of 
these cost differentials may account for one-fourth of the usual spread 
between the average sales values of the two products, the remainder 
must be attributed to the existence of close substitutes for plaster- 
board. One ton of gypsum plaster will cover about 170 square yards 
on wood lath, or 200 square yards on plasterboard. Since 90 million 
square yards of plasterboard were sold in the United States in 1938, 
approximately 450,000 short tons of plaster (about 40 percent of the 
total sold in the United States) were applied to plasterboard walls. 
The consumption of wood lath in 1938 is estimated at about 
1,000,000,000. Since 16 or 17 wood lath are required per square yard 
of plaster, approximately 405,000 tons of plaster were applied to wood 
lath. The price of plasterboard, therefore, must be maintained at a 
rather definite relation to the price of wood lath in order to hold or 
to extend its sales. For certain uses, moreover, which formerly re- 
quired metal lath according to the fire underwriters' specifications, 
plasterboard may now be used. The retention or extension of this 
market likewise depends largely on a close price ratio. Common wall- 
board, on the other hand, is not confronted with any close substitutes. 
At peak retail prices of $38 per thousand square feet (1935) its cost 
installed was only about one-half the cost of a lath-and-plaster job. 
Fiberboards which sell for $45 or $50 are a closer substitute, but wall- 
board has the advantage over most of them in being more fireproof. 
The above points with regard to price behavior of gypsum products 
are indicated more clearly in the following table in which average unit 
mill values (f. o. b.) and prices paid by the U. S. Government in the 
District of Columbia are given for selected products in recent years. 
Since the prices paid by the Government may be on a preferred basis 
and are inclusive of transportation costs and dealers' costs, they are 
not significant for a direct comparison with average unit mill values. 
Both series are given to indicate price changes from year to year.^^ 
Three points may be observed with regard to table 20; first, on the 
basis of unit mill values the depression and recent organizational 
changes in the industry had little eft'ect on the prices of plaster; 
second, the unit values for plasterboard indicate for the last 2 years 
price changes which probably reflect organizational changes and the 
existence of close substitutes; and third, the prices paid by the United 
States Government for common wallboard indicate the amenability 
of the product to control — its price did not drop belov/ the 1930 level 
until 1938 and substantial upward variations occurred in the interim. 
With regard to the recent price decline of plasterboard, the reaction of 
sales is significant. The official report notes that "the square footage 
of gypsum-lath sales rose to a new record during 1938, increasing 10 
percent over 1937".^^ The sales of other gypsum products declined 
slightly in 1938 as compared with 1937. 

" Trade journal quotations appear to be routine and nominal. The new price series of the Bureau of 
Labor Statistics seems inadequate since reports for plaster are from 1 of about 30 producers and for wall- 
board from one producer and on one specification— there are many varieties. The latter is also a delivered 
price. 

25 U. S. Department of the Interior, Bureau of Mines, Minerals Yearbook, 1939, p. 1183. 



257771—41 — No. 10- 



40 



. CONCENTRATION OF ECONOMIC POWER 



Table 20. — Gypsum building products; average unit values, f. o. b., and delivered 
prices to U. S. Government in District of Columbia, 1930-38 



Wall plaster 



Price to 
U. S. Gov. 



District of 
Columbia 



Unit values 
f. 0. b. 



J^-inch plasterboard 



Price to 
U. S. Gov- 
ernment in 
District of 
Columbia 



Unit values 
f. o. b. 



36-inch 
common 
wallboard 



Price to 
U. S. Gov- 
ernment in 
District of 
Columbia 



All wall- 
board ' 



Unit values 
f. o. b. 



Per 1 ,000 square feet 



1930. 
1931 
1932 
1933 
1934. 
1935 
1936. 
1937. 
1938. 



$13.00 
12.00 
If.. 00 
12.00 
12. 40 
18.00 
16.40 
12.70 
11.98 



8.46 
8.79 
9.55 
9.86 
9.27 
9.02 
8.95 



$20. 00 


$16. 46 


$30.00 


21.00 


14.47 


34.00 


21.00 


15.23 


32.00 


21.00 


14.75 


34.00 


20. .50 


14.41 


32.00 


25.00 


15.02 


38.50 


21.00 


15.36 


32. 69 


19.00 


13.00 


33.50 


17.30 


12.71 


27.40 



$24. 74 
24.91 
28.11 
25.89 
26. 56 
26.14 
23.92 
21.67 
21.31 



' Unit values for all wallboard include a wide range of types and prices. 

Source: U. S. Bureau of Mines and Procurement Division of the Treasury, class 59 of the supply schedule. 

A rough crops section of the organizational structure of the gypsum 
industry in 1938 may be presented briefly. There were 56 active 
gypsum mining units in the United States in that year. Of these units 
the United States Gypsum Corporation probably controlled 20, the 
National Gypsum Co. 8, and the combination of Certain-teed and 
Celotex 7. Since there were a few other multiple-plant companies 
(mainly Portland cement companies), there were probably only 10 or 
12 independent 1-plant producers. In terms of a rough estimate 
the United States Gypsum Corporation mined about 45 percent of 
the total output; all 3 of the above combinations about 80 percent. 
The United States Gypsum Corporation had 1 or more units in 8 of 
the 9 main producing States. In the other 7 States it had at least 
1 unit in 5 of them. The National Gypsum Co. had a State 
distribution of less than half that of the United States Gypsum 
Corporation. 

In the same year there were 54 active calcining plants, of which 42 
used domestically mined crude, 11 imported crude, and 2 byproduct 
crude (1 abandoned in latter part of the year). In this stage of 
gypsum manufacturing the United States Gypsum Corporation 
probably has about the same, if not greater, percentage of the output 
as in the domestic mining of crude gypsum. About the same per- 
centage of output seems to prevail for plaster; it is probably greater 
for Keene's cement. In the manufacture of wallboard and plaster- 
board the 3 largest producers mentioned above probably supply 
80 percent of the output. There are several manufacturers of board 
who buy calcined gypsum as their raw material. Because of the 
advantageous patent position of the United States Gypsum Corpora- 
tion, it probably dominates the board manufacturing branch of the 
gypsum industry. The development, however, of the Celotex and 
Certain-teed combination may alter its position in the near future. 



CONCENTRATION OF ECONOMIC POWER 41 

5. MONOPOLY AND TARIFF PROTECTION: AN EVALUATION OF EXISTING 
CONDITIONS, SUGGESTED CHANGES, AND THEIR PROBABLE EFFECTS 

The domestic gypsum industry expanded rapidly after 1898, partly 
because of a new demand for its products, and partly because of the 
peak of restriction on imports which was reached in the Tariff Act of 
1897. This phase of the industry's development was accompanied 
by a sharp increase in industrial concentration. During the follow- 
ing decades the industry increased its output and varied its products. 
Duties on imports were partially lowered, but industrial concentration 
remained about the same. Although the duties on gypsum products 
are no longer as significant as in the early days of the industry's develop- 
ment, they probabl}^ facilitate monopolistic practices. 

The duties on gypsum and gypsum products in the Tariff Act of 1913 
were primarily duties for revenue. The duty of 10 percent ad valorem 
which applied to crude and, with one exception, to finished products 
provided, if any, only incidental protection. The duty of 25 percent 
ad valorem on one class of gypsum products, chiefly building materials, 
probably provided moderate protection for the most important and 
rapidly developing section of the industry. The change in duties in 
1922 and their continuation in the act of 1930 were definitely of a 
protective nature. Crude gypsum was made free of duty in order to 
promote domestic manufacturing and all duties on manufactured 
products were increased . 

The free entry of crude gypsum is important especially for the large 
consuming areas along the Atlantic seaboard. Its free status must 
be credited largely to the influence of the producers in the import- 
manufacturing segment of the industry. Since the duty-free status 
was bound in the Canadian trade agreements, the issue, at least for a 
time, is settled. 

Although the present duty of $1.40 per ton on ground or calcined 
gypsum is only slightly higher than the former duty, it excludes, at 
least potentially, substantial imports. The Gypsum Association 
opposed any concession on this item in the trade agreement with the 
United Kingdom. In the argument against concessions several 
factors were stressed, such as the efficiency of the British industry, 
the existence of undeveloped gypsum deposits in Newfoundland, and 
the proximity of Canadian producers to large domestic consuming 
centers. "It is impossible," the association emphasized, "to over- 
state the potential danger to the domestic industry from imports of 
ground and calcined gypsum from Canada." Even small imports 
were objected to because they seemed to be a "source of injury to the 
domestic industry far out of proportion to the quantity of domestic 
production displaced by the foreign product." Apparently the present 
duty assists the domestic industry to maintain prices and preserves 
the existing import-manufacturing segment of the industry. Without 
tarift" protection the American-Canadian companies, as well as others, 
would in time substantially increase their shipments of ground and 
calcined gypsum to the United States. Without tariff protection a 
few additional independent suppliers would be able to participate in 
the domestic market. Domestic competition would probably become 



42 CONCENTRATION OF ECONOMIC POWER 

more effective on a price basis and a considerable saving in transport 
costs would be achieved. The duty on ground and calcined gypsum 
was bound at the present rate in the trade agreement with the United 
Kingdom. 

The duty of 35 percent ad valorem on gypsum products, chiefly 
building materials, probably excludes moderate amounts of imports 
of the more common types from the seaboard markets. Because of 
the efficiency, improvements, and patents of the domestic industry, 
the elimination of the duty wouki probably not increase greatly the 
amouTit of imports but the increase might have a very beneficial effect 
on the prices of these products in the seaboard markets. 

The duties on gypsum cements, which are equivalent to about 30 
percent ad valorem, represent the greatest duty increase for gypsum 
products in the act of 1922 as compared with the act of 1913. The 
increase is definitely of a protective nature and probably excludes 
substantial amounts of imports. The control of domestic production 
is highly concentrated and without tariff protection competitive 
conditions would be improved especially in the seaboard markets. 

In view of the monopolistic nature of the gypsum industry, its 
efficiency of production, the possible saving in transport costs, and 
the probable lowering of prices, the duties on gypsum products should 
be greatly reduced or eliminated. At the present time the domestic 
industry has excess plant capacity, but that condition is usually 
associated wath monopolistic practice. Increased competition and 
lower prices would probably bring into use some present excess 
capacity and would eliminate some excess capacity which is not 
efficiently operated or advantageously located. 



CHAPTER IV 
THE FLAT-GLASS INDUSTRY 

1. MAJOR FLAT-GLASS PRODUCTS 

There are five major products in the flat-giass industry; namely, 
cyhnder, crown, and sheet glass; plate glass; rolled and figured glass; 
wire glass; and structural glass. Other related glass products, usually 
flat in form, are safety glass (the most important), mirrors (silvered 
glass), stained and painted glass windows, and flat glass further 
manufactured by processes such as bending, beveling, coloring, 
engraving, etching, and ornamenting.^ The largest single use for flat 
glass is in the construction of buildings. 

"Cylinder, crown, and sheet glass" is a tariff term which refers to 
different methods of manufacture. Since the sheet-drawing method 
is now used almost exclusively, this product is usually referred to as 
"sheet glass." Its chief use is for window glass. Although it has a 
smooth and glossy finish (fire polish), it differs from plate glass prin- 
cipally because of its unground and unpolished surfaces. 

Plate glass is a perfectly flat transparent glass with ground and 
polished surfaces. It is practically free from structural defects and 
shows no distortion of vision when objects are viewed tlu^ough it at 
various angles. Its chief uses are in automobiles, buildings, show- 
cases, etc. Safety glass is laminated plate glass (sometimes sheet 
glass) ; that is, two pieces of flat glass bound together with a layer of 
plastic material between them; or plate glass subjected to a special 
surface-hardening process which imparts a high degree of strength 
and flexibility and prevents it from breaking into sharp splinters when 
shattered. Wire glass is also one type of safety glass. 

Rolled glass differs from plate glass (also produced by rolling) 
because its surfaces are not ground and polished and because one sur- 
face usually has a fluted, ribbed, or figured design which renders it 
nontransparent, but does not destroy entirely its light-transmitting 
properties. Rolled glass is used largely for factory windows, skylights, 
office partitions, etc. 

Wire glass is ordinary rolled or plate glass which has embodied in it a 
wire mesh or netting. The wire prevents it from being easily shat- 
tered and it is used where there is danger of fire or shock, such as 
raOway stations, elevator enclosures, power plants, and warehouses. 

Structural glass (or obscured glass) is flat glass in heavy, opaque 
sheets. Since it is produced in many colors, it is used frequently as a 
substitute for marble, tile, porcelain, and other decorative and sani- 
tary materials. Glass blocks, bricks, and tiles are substitutes for 
similar ceramic products. 

The total value of flat glass, not including related products, produced 
in the United States in 1937 as reported by the census was $100,938,- 

1 U. S. Tariff Commission, Flat Glass and Related Glass Products, 1937, p. 277. This report contains 
an excellent detailed description of the domestic industry, statistics of production and international trade, 
tariff history, etc. Most of the data in the present study are drawn from it. 

43 



44 



CONCENTRATION OF ECONOMIC POWER 



681. Plato glass was the most important item and sheet glass (win- 
dow glass) ranked next in importance. These two products probably- 
accounted for 80 percent of the total value. In this report the sub- 
sequent analysis will be confined primarily to the above major flat- 
glass products and the main emphasis will be given to plate and sheet 
glass. 

2. TARIFF HISTORY 

Flat glass imported into the United States has been subject to duty 
since the passage of the first tariff act in 1789. In the act of 1913 
all duties were reduced substantially (approximately 50 percent) below 
the level wliich had prevailed during the prior 30 years. The weighted 
average equivalent ad valorem for the 30-year period ranged between 
50 and 68 percent.^ In the act of 1922 the duties were increased almost 
to the old level, and by Presidential proclamations under the flexible 
provisions of this act rates were further increased on several important 
products. The flat glass industry has been the recipient of very sub- 
stantial and prolonged tarifl' protection. 

Plate glass is subj(>ct to duty on the basis of size. A comparison of 
duty changes since 1913 is presented in table 21. The act of 1930 
reduced the duties to about the 1922 level, increased the duty-brackets 
from three to four, and added a minimum ad valorem duty of 50 per- 
cent for the high-priced, thick types of glass on which the specific 
duties might be equivalent to a low ad valorem rate.^ The higher 
specific duties on the large sizes and more expensive plates are designed 
to maintain more uniform equivalent ad valorem rates. The ad 
valorem equivalent for all imports in the period 1930-34 was approxi- 
mately 94 percent. 

Table 21. — Plate glass: Comparison of tariff duties, 1913-30 
[Cents per square foot] 



Plate glass 


Belgian 

agreement 

effective 

May 1, 

1935 1 


Act of 1930 
par. 222 (a) ' 


Presiden- 
tial procla- 
mation 
effective 
Feb. 16, 
1929 


Act of 1922 


Act of 1913 




8.3 

11.3 

11.7 
13.2 


12^2 

17 

17>.^ 
19?4 


16 

19 

} 22 


15 


6 


Above 384 and not exceeding 720 square 
inches 

Above 720 and not exceeding 1,008 square 
inches 


8 
12 













' Glass measuring V^ inch or more in thickness subject to a minimum rate of 50 percent ad valorem. 

The Presidential proclamation which increased tho duties on plate 
glass in 1929 followed a cost investigation by the Tarifl' Commission 
(act of 1922, sec. 315).'' On the basis of the Commission's report to 
the President, which presented weighted average unit costs of produc- 
tion (f. o. b. plants) in the United States and in Belgium for the 3 
years 1923-25 on standnrd grades of plate glass produced bj'^ the cast- 
ing process, the duties were increased as indicated above in order to 
equalize delivered costs of domestic and foreign glass in 14 important 

« U. S. Tariff Commission, Flat Glass, etc., p. 5. 

« When plate glass is bent, frosted, sanded, etc. (par. 224), it is subject to an additional ad valorem rate of 
6 percent. 
• U. S. Tarifl Commission, Flat Glass, etc., pp. 103-107. 



CONCEN-TRATION OF ECONOMIC POWER 45 

domestic markets. In order to obtain delivered costs Belgian costs 
were converted into dollar costs for each year at the average rate of 
exchange for the Belgian franc and average transportation costs were 
included. The equivalent ad valorem rate of the specific duties in 
1928 was 79.8 percent, in 1929 the increased duties had an equivalent 
ad valorem rate of 106.3 percent. 

A second investigation of costs (Tariff Act of 1930, sec. 336) was 
m.ade in 1932 for the 3-year period 1929-31. It showed that the more 
complete transition to modern manufacturing methods in the United 
States had narrowed the spread between American and Belgian costs 
for the production of plate glass, and that in order to equalize such 
costs the existing duty should be reduced by the statutory maximum 
of 50 percent. The report was returned by the President to the 
Commission late in 1933 with the request that changes subsequent to 
the 3-year period, which might alter the conclusions of the report, 
should be considered. A supplemental investigation was made, but 
it did not disclose any data which would alter substantially the find- 
ings of the prior mvestigation. 

No change was made in the duties on plate glass until 1935. In the 
Belgian trade agreement, effective May 1, 1935, the duties for plate 
glass were reduced by about 33 K percent. The equivalent ad valorem 
rate for the specific duties was 78 percent in 1934, 44 percent in 1935, 
55 percent in 1936, 40 percent in 1937, and 63 percent in 1938. 

Sheet glass is also dutiable according to surface area, but for each 
tariff bracket the duty is per pound. In the act of 1913 the duties 
ranged from }i to 2 cents per pound for six tariff brackets based on 
surface area. The equivalent ad valorem rate for 1920 was 10 per- 
cent. In the act of 1922 the duties were increased and one more 
tariff bracket added. The duties ranged from 1% to 2^ cents per 
pound; the equivalent ad valorem of these rates for 1923-28 varied 
between 27 and 46 percent. By Presidential proclamation, effective 
June 13, 1929, the duties were increased 50 percent.^ The act of 
1930 retained these rates and provided a minimum ad valorem rate 
of 50 percent for glass weighing less than 16 ounces but not less than 
12 ounces per square foot. The average equivalent ad valorem of 
the specific duties for the period June 13, 1929, to January 1, 1932, 
was approximately 67 percent. On the latter date, by Presidential 
proclamation, the duties were reduced 25 percent. For the period 
1932-37 the average equivalent ad valorem rate ranged between 46 
and 66 percent. During the lifetime of the Czechoslovak trade agree- 
ment (April 16, 1938, "to April 22, 1939) the duties were reduced 
approximately 30 percent. Since the suspension of the above agree- 
ment the duties fixed by the Presidential proclamation in 1932 
prevail.^ 

' U. S. Tariff Commission, Flat Glass, etc., p. 63. Four investigations of the costs of production of 
window glass have been made. 

Duty, cents 

^ Sheet slass (par. 219) . per pound 

Not over 15 square inches mi,4 

Above 150 and not over .384 squr.re inches l^^* 

Above 384 and not over 720 square inches l^^A* 

Above 720 and not over 864 square inches 1^%* 

Above 864 and not over 1,200 square inches 2H 

Above 1,200 and not over 2,400 square inches 23*^4 

Above 2,400 square inches 2*564 

A minimum rate of 37?-^ percent ad valorem is provided for sheet glass weighing less than 16 ounces, but 
not less than 12 ounces. When sheet glass is bent, frosted, sanded, etc. (par. 224), it is subject to an addi- 
tional ad valorem rate of 5 percent. 



46 CONCENTRATION OF ECONOMIC POWER 

Rough rolled and figured glass, with or without embodied wire 
netting, is dutiable (act of 1930, par. 221) at 1)2 cents per pound. 
The average equivalent ad valorem rate for the 5-year period 1931-35 
was 32 percent. The duties in the acts of 1913 and 1922 were brack- 
eted according to surface area and were in terms of cents per square 
foot. Their average in equivalent ad valorem terms was below 30 
percent. 

Polished wire glass (plate glass with embodied wire netting) was 
dutiable at the same rates as plate glass in the act of 1913 (table 1, 
above). In the act of 1922 the rates were slightly higher than those 
for plate glass, namely, 15, 17K, and 20 cents per square foot; in the 
act of 1930 they were also slightly higher, 15, 20, and 23 cents per 
square foot. The average ad valoren equivalent for 1923-29 ranged 
between 34 and 108 percent. Since 1929, although the duties were 
reduced 33^3 percent in the Belgian trade agreement (effective May 
1, 1935), imports have been negligible. 

Structural glass (or obscured glass) measuring one-fourth of an inch 
or more in thickness is dutiable in the Tariff Act of 1930 (par. 222 
(d)) at the same rates as plate glass (table 1, above). In the Belgian 
trade agreement (1935) the specific rates of duty were reduced about 
33)3 percent in accordance with the reduction on plate glass and wire 
glass. If less than one-fourth of an inch in thickness, structural 
glass is dutiable at rates which vary according to the method of 
manufacture. Wlien rolled, the rates for rolled glass apply (par. 221) ; 
when produced by anj^" other method, the rates for sheet glass apply 
(par. 219). An additional rate of 5 percent is imposed when the 
glass is colored, regardless of the method of manufacture. The ad 
valorem equivalents of the duties on all imports of structural glass 
were 51 percent in 1931, 57 percent in 1933, 62 percent in 1936, 46 
percent in 1937, and 31 percent in 1938.^ 

Laminated glass (safety glass) was not specifically provided for in 
the tariff prior to 1930. In the act of 1930 it was made dutiable at 
60 percent ad valorem (par. 220). In the Belgian trade agreement 
(1935) the rate was reduced to 45 percent. 

Some of the raw^ materials used in the glass industrj^ are subject to 
duty, but the duties were never significant with regard to the cost of 
making glass and in recent years a few of them were reduced. The 
main raw materials used in the manufacture of flat-glass products are 
silica sand, soda ash, lime, salt cake, and cullet, or broken glass. Of 
the total cost of production, fuel is the largest single item of expense 
next to labor; cost of raw materials represents only 10 to 15 percent 
of the total. Supply of fuel and, to a lesser extent, silica sand have 
been important factors in the localization of the flat-glass industry. 
In localities where the cost of natural gas is prohibitive, flat-glass 
plants use producer or coke-oven gas, or oil. With the possible 
exception of a few coloring agents, all raw materials are available in 
the United States in abundance. 

Silica sand of varying purity and quantity is found in many States, 
but the most important and best developed deposits of glass sand in 
the United States are located in Illinois, West Virginia, and Pennsyl- 

' In tlio tariff acts of 1922 and I'J.'jO glass tiles were dutiable at 40 percent ad valorem. In the Belgian 
asreement the duty wns reduced to 30 percent. Olii.ss tiles are usually made by cutting large sheets of 
obscured glass as the demand warrants. Statistics for domestic production and exports are not available. 
Imports, chiefly from Belgium, are small as compared with estimates of domestic production. 



CONCENTRATION OF ECONOMIC POWER 47 

vania. These States produce from 60 to 70 percent of the total 
domestic output. Belgium and France have some of the finest glass 
sand deposits in the world. Small quantities of glass sand (about 2 
percent of domestic consumption) are imported annually, princi- 
pally by Pacific-coast producers, from Belgium, but very little, if 
any, is used in the manufacture of flat glass. Tlie duty on imported 
glass sand was reduced 50 percent in the Belgian trade agreement. 

Soda ash in terms of value is the most important raw material in 
the manufacture of glass. Although it is found in a natural state, 
the kind generally used by glass producers is the artificial product 
made by a number of the large domestic chemical plants. Soda ash 
is dutiable in the Tariff Act of 1930 (par. 81) at Ya cent per pound. 
Very little, if any, imported soda ash is used in the domestic flat glass 
industry. Salt cake, also supplied by the domestic chemical industry, 
is free of duty. 

Limestone is found in nearly all sections of the United States. It 
is used more generally than lime in the manufacture of glass. In 
recent years dolomite limestone (containing magnesia) has been used 
extensively, especially in tlie sheet-drawing process of manufacture. 
In the Tariff Act of 1930 (par. 203) limestone not suitable for use as 
monumental or building stone, crude or crushed but not pulverized, 
is dutiable at 5 cents per 100 pounds. Since January 1, 1936 (first 
Canadian trade agreement), the dut}^ on limestone is 2}^ cents and on 
lime 7 cents per 100 pounds (5 cents in second Canadian agreement, 
1938). 

3. DOMESTIC PRODUCTION, IMPORTS, AND EXPORTS 

The total production in 1900 of all flat-glass products was valued 
at $17,000,000. Over 63 percent of the total consisted of window 
glass; 30 percent of plate glass; and the remainder of rolled, cathedral, 
wire, and opalescent glass. From 1880 to 1800 domestic production 
had increased almost 200 percent in value. Imports of flat glass in 
1880 were about 40 percent of domestic production; in 1900 they were 
less than 15 percent. 

Important changes occurred in the industry during the World War 
period. Domestic production in 1914 was valued at $37,000,000; 
in 1919 at $84,000,000. The increase was largely due to curtailment 
of production abroad, expansion of the automobile and building 
industries, and improvements in manufacturing processes. American 
exports increased greatly. The peak of domestic production was 
readied in 1923 when the total value of flat-glass products amounted 
to $122,000,000. Imports M'ere valued at almost $19,000,000; prior 
to 1923 they had never exceeded $5,000,000 a year. Although 
quantitative increases were large, part of the value change was the 
result of higher prices in 1923 as compared with prior years. 

All branches of the industry by 1930 had become almost completely 
mechanized. In the interim (1924-26) domestic production declined, 
but the drastic dechne occurred during the depression years 1930-33. 
Imports declined relatively more; the ratio of imports to domestic 
production dropped from about 10 percent in 1925 to less than 2 
percent in 1933. Exports, which were formerly less than imports, 
exceeded imports in 1932 and have increased steadily since that year. 
In 1933 domestic production of flat-glass products were valued at 
$37,000,000; imports at $489,000; and exports as $1,324,000. Since 



48 CONCENTRATION OF ECONOMIC POWER 

1933 domostic production, imports, and exports of flat j^lass, have 
increased. The value of domestic nroduction in 1937 was $101 ,000,000 ; 
of imports, $3,026,000; and of exports, $1,453,000. The domestic 
industry is largely centered around Pittshuigh. 

The plate-glass industry prior to 1922 developed steadily, but domes- 
tic production had never exceeded 70,000.000 square feet annually. 
In response to an increase in demand, largely in the automobile 
industry, as well as improved process(>s of manufacture, production 
attained a predepression peak of 149,000,000 square feet in 1929. In 
that year domestic production of plate glass exceeded the combined 
output of all other countries. In 1932 domestic production declined 
63 percent as compared with 1929; it increased thereafter and reached 
a record high of 198,000,000 square feet in 1936. Output in 1937 
declined slightly to 192,000,000 square feet which was valued at 
approximately $45,000,000. 

Imports of plate glass have always been small compared with domes- 
tic production, and in recent years have been negligible. Imports in 
1914 and 1921 amounted to 2,820,000 and 3,025,000 square feet, 
respectively. Although the duty was increased in 1922, imports 
reached their highest point of 25,919,000 square feet in 1923. Over 
80 percent of the imports of flat glass in that year consisted of plate 
glass. Because of high prices, however, the average equivalent ad 
valorem rate of the specific duties was only 26 percent. By 1928 
the rate had increased to 79 percent because of the reduction in prices 
and imports had declined to 15,665,000 square feet. Thereafter the 
decline continued until 1935 when oply 58,782 square feet of plate 
glass was imported. For the 3 years i 936-38 (Belgian trade agree- 
ment duties), imports amounted to 359,000; 2,060,800; and 484,000 
square feet, respectively, wliich represented less than 1 percent of 
domestic production for the same period. The average equivalent 
ad valorem rates for the above years were 55, 40, and 63 percent, 
respectively. Belgium is the chief supplier of imported plate glass 
and New York City is the largest market for imports. In recent 
years imports consist mainly of sizes one-quarter of an inch thick 
and over 5 square feet in area; that is, plate glass used mainly in the 
construction industry. Over 70 percent of the plate glass produced 
in the United States is used in the manufacture of automobiles. 

Since 1931 exports have exceeded imports. During the years 1932- 
38 they ranged from 2}^ to 5}^ million square feet. In recent years 
Canada has been the chief market for exports; its purchases have 
averaged from one-third to one-half of all exports. Canada imports 
more plate glass from the United States than from Belgium or the 
United Kingdom, although the latter is accorded preferential tariff 
treatment in the Canadian market. In the second trade agreement 
with Canada, the 20 percent ad valorem duty on plate glass, not ex- 
ceeding 7 square feet, was bound in the Canadian tariff as a concession 
item for the United States. Imports from the United Kingdom 
enter Canada free of duty. 

The window glass industry in 1900 used only the hand-cylinder 
process of manufacture. During the next 15 years it shifted pre- 
dominantly to the machine-cylinder process which in turn was re- 
placed completely by the sheet-drawing process in recent years. 
During the period 1900-35 the industry more than doubled its capacity 
and the number of operating plants were reduced from 100 to 13. 



CONCENTRATION OF ECONOMIC POWER 49 

Domestic production increased steadily, except for the World War 
period, and reached a peak in 1925 of 737,000,000 pounds. In 1932, 
the depression-low, output dropped over 70 percent as compared 
with 1925. Production increased irregularly during the next few 
years and a new record of over 800,000,000 pounds was made in 1937, 
valued at $31,000,000. 

Imports of window glass prior to 1900 represented about 20 
percent of domestic consum.ption. During the next 14 years they 
dropped to about 8 percent of domestic consmnption. In 1921 
im^ports amounted to 47,000,000 pounds, or about 12 percent of 
dom.estic consumption. A peak of 83,000,000 pounds was recorded 
in 1927, but the percentage of im.ports to domestic consmnption 
remained the sam.e. The depression low for imports occurred in 
1934 when only 2,404,000 pounds were imported. In 1937 imports 
totaled 46,055,000 pounds (about 5 percent of dom.estic consum.ption) 
which was valued at $1,238,000. Prior to 1930 Belgium was the chief 
supplier of im.ports; thereafter, until its dissolution, Czechoslovakia. 
Since 1937 Belgium, has been the chief supplier of imports. 

Exports of window glass prior to the World War were quite small 
(about $100,000 annually). They increased during the war period 
and reached a peak of $6,493,000 in 1919 or about 13 percent of the 
value of domestic production in that year. For a number of j^ears 
exports of window glass were not reported separately. In 1937 
exports totaled 445,000 pounds, valued at $52,776. Exports in all 
years were less than imports. The United States is not an important 
supplier of window glass in nearby markets, such as Canada and 
Mexico, which receive the larger part of their imports from European 
countries. 

Rolled glass (rough, figured, and rough rolled with wire netting) is 
not reported separately in census statistics of production. The Tariff 
Comm.ission, however, on the basis of reports from, principal producers 
estimates that output in 1936 amounted to 31,000,000 square feet, 
valued at approximately 2.8 million dollars; in 1937 output totaled 
39,000,000 square feet valued at about 3.5 million dollars. In recent 
years (1931-38) imports have ranged from approximately 140,000 to 
500,000 square feet. Belgium, and the United Kingdom are the chief 
suppliers of imports. No concession, however, was m.ade on rolled 
glass in trade agreements with the above countries. Exports are not 
separately recorded, but they are probably about equal to im,ports 
in terms of quantity. 

Polished wire glass is produced in the United States by the m.anuf ac- 
turers of rolled glass products, and it represents only a small part of 
their output of flat glass. In recent years (1931-38) output has 
ranged from 1,000,000 to 1,700,000 square feet with a value range 
from $360,000 to $750,000. Belgium has been the principal source of 
imports. Although the duty was reduced in the Belgian trade 
agreement, imports for the above period have been nil or negligible. 
Exports are not separately reported, but they are known to be small. 

Structural glass is not reported separately in the census. On the 
basis of reports to the Tariff Comm.ission output declined from about 
5,000,000 square feet in 1929 to 1,000,000 square feet in 1935, and 
then increased to about 4,000,000 square feet in 1937. Belgium is 
the principal source of im.ports and the duty was reduced in the 
Belgian agreem,ent. Im.ports, however, have been negligible in recent 



50 CONCENTRATION OF ECONOMIC POWER 

years (1931-38) as compared with domestic production; they have 
ranged from 4,700 to 131,000 square feet. Exports of structural glass 
are not separately reported. 

Laminated glass, except for 2 years, is not reported separately 
in the census. On the basis of reports to the Tariff Commission 
domestic production increased from $9,000,000 in 1931 to $76,500,000 
in 1937. Imports during the same period ranged from $180 to 
$606,000. Germany, Belgium, and the United Kingdom are the 
principal sources of imports. Although the duty was reduced in the 
Belgian agreement, imports have increased only moderately and most 
of tlie increase is accounted for by Germany which is not granted the 
reduced rate. Exports, not reported separateh^ until 1987, are neg- 
ligible; they totaled $87,161 in 1937. 

4. TRENDS IN CONCENTRATION 

There were 124 flat glass establishments in the United States in 
1900.^ Of this number 100 produced window glass; 13 produced 
plate glass (of which 9 also made skyhght glass); and 11 produced 
rough, rolled, or ribbed glass, cathedral, wire, or skylight glass, or glass 
tiling. The Pittsburgh Plate Glass Co., a consolidation of eight 
companies in 1895, owned 10 of the 13 plate glass establishments 
reported in 1900. It produced about 83 percent of the total output 
of plate glass. The American Window Glass Co., a consolidation of 
20 establishments in 1899, or about 85 percent of the industry,^ 
owned 39 of the 100 window glass establishments inl900. 

In 1936 there were 35 companies and 58 plants in the United States 
either manufacturing, or equipped to manufacture, major flat-glass 
products. Seven of the fifty-eight plants were idle. Of the 51 active 
plants the Pittsburgh Plate Glass Co. owned 6 ; 3 plants produced sheet 
glass, 2 produced plate and laminated glass, and 1 plant produced plate, 
structural, and tile glass. The Libby-0 wens-Ford Glass Co. owned 
6 active plants; 2 plants produced sheet glass, 2 produced plate and 
laminated glass, 1 produced only plate glass, and 1 produced structural 
and tile glass. The American Window Glass Co. owned 4 active plants 
which produced sheet glass; 1 also produced laminated glass. The 
Fourco Glass Co. owned 4 sheet glass plants, but 3 were idle in 1936. 
In addition it acted in 1936 as sales agent for 4 one-plant companies. 
The Mississippi Glass Co. owned 5 of the active plants and these 
specialized mainly in the production of rolled and wire glass. Two 
other companies owned 2 plants each; the remaining 28 companies 
were 1 -plant establishments. 

During the period 1900-1936 the Pittsburgh Plate Glass Co. acquired 
many additional properties which gave it an important position in the 
flat-glass industry. It owns one glass plant in Belgium and maintains 
jobbing and distributing outlets in over 70 of the principal cities of the 
United States. In addition it added many properties which produce 
related profhicts, such as chcmicrds, paint, varnish, and linseed oil. 

The Libby-Owens Sheet Glass Co. began in 1916 as a consolidation 
of six plants. In 1 930 it became the Libby-Owens-Ford Glass Co. with 
the acquisition of the Edward Ford Plate Glass Co., and it expanded 
rapidly thereafter in the plate glass industry. This dcAelopment was 

8 Twelfth Census of the U. P., vol. IX, M.<»niifaptiires. pt. III. pp. 9G?-967 
« Poor's Manual of Industrials, 1907, p. 10V2. 



CONCENTRATION OF ECONOMIC POWER 



51 



facilitated by the entrance and withdrawal in the early twenties of 
airtomobile companies in the glass industry. Several companies (the 
Fisher Body Corporation, Durant, and the Ford Motor Co.) purchased 
glass plants, but later, with the exception of the Ford Motor Co., 
withdrew from the glass industry when satisfactory arrangements 
were made for supplies with the plate glass companies. Libby-Owens 
acquired some of the plants formerly owned by the automobile com- 
panies. In 1932 Libby-Owens-Ford made a cross license agreement 
with the Pittsburgh Plate Glass Co, with regard to the manufacture 
of safety glass. 

Plate glass is produced in the United States by four companies. 
Since 1900 the Pittsburgh Plate Glass Co. has accounted on the 
average for about 50 percent of the domestic output. This company 
and LJbby-Owens-Ford produce about 90 percent of the plate glass 
which is sold. Although the Ford Motor Co. makes substantial 
quantities of plate glass, it is used exclusively within the Ford auto- 
mobile plants. The two large plate-glass companies through close 
contractual relations with the large automobile manufacturers are in 
a favorable position to control the automobile market for plate glass. 
The financial affiliations of these companies with certain large chemical 
companies enables them to obtam most of their raw materials at 
relatively low costs. Each company also has affiliations with Euro- 
pean flat-glass companies, either through licensing agre(>monts (exclu- 
sive use of patented processes), or by direct ownership. 

Wholesale prices as quoted by leading domestic manufacturers for 
representative types of plate glass over a period of years are given in 
table 22. There were no significant price changes during the years 
1937 and 1938. Three trends in the wholesale prices for plate glass 
may be briefly noted. First, the spread in prices between the small 
and large sizes has diminished in recent years because of the growing 
demand for the smaller sizes in the automobile industry. Formerly 
the smaller sizes were a kind of byproduct since they were cut from 
broken and defective sheets. Second, the tremendous increase in 
demand for plate glass in the early twenties, principally from the 
building and automobile industries, which culminated in peak prices 
in 1923 was met rather promptly by an increase in plant capacity 
and improved processes of production. The downward trend in 
prices in subsequent years reflects these changes in the industry. 
Third, although prices in 1939 were approximately equal to those 
established in 1913, they changed only moderately during the years of 
depression. 



Table 22. — Plate glass: Quoted prices, f. o. b. plants, for glazing quality, cut sizes, 
in specified years 

[Per square foot] 



Not over 384 square inches: 

other than automobile 

Automobile sizes 

384 to 720 square inches 

720 to 1,008 square inches 

Above 1.008 square inches ^ 



1913 


1921 


1923 


1925 


1926 


1929 


1931 


1933 


1936 


$0.19 


$0. 33 


$0.49 


.$0. 31 


.$0. 20 


$0.21 


$0.20 


sn.24 


$0.19 


.26 


.42 


.VO 


. 5'.' 


.42 


.35 


.30 


.31 


23 


''9 


.52 


.85 


.60 


■ .50 


.42 


.35 


.35 


.27 


.36 


.58 


. 88 


.68 


.53 


.45 


36 


.37 


.29 


.43 


.71 


1.00 


.82 


.62 


.54 


.46 


.46 


.37 



,$0. 22 
.23 
.29 
.31 
.39 



' Between 7/64-3nd 9/32-ineh thickness. 
2 Between 25 and 50 square feet only. 



i obtained from domestic manufacturers by Tariff Commission. 



52 



CONCENTRATION OF ECONOMIC POWER 



Delivered prices conform generally to a multiple-basing point 
system. Prices arc quoted f. o. b. factory with freight equalization 
to the nearest competing factory. The Pittsburgh Plate Glass Co., 
for example, when selling to a customer in Detroit would ship glass 
from either Creighton, Ford City, Pa., or Crystal City, Mo., and 
would absorb the amount by which the freight charges from these 
plants to Detroit exceed the freight charges from the Libby-Owens- 
Ford plants at Toledo, Ohio. The buyer would be required to pay 
only the equivalent of the freight charges from Toledo to Detroit. 

In the sheet glass industry four companies produce practically the 
entire output. Three of those companies (Libby-0 wens-Ford, Pitts- 
burgh Plate Glass, and American Window Glass) in 1937 produced 
over 75 percent of the total output; the first two companies produced 
over 50 percent of the output. The fourth company, the Fourco 
Glass Co., is a consolidation of four or five small independent com- 
panies ^° and is also a sales agent for several other small independent 
companies. The two largest companies have patented and developed 
mechanical sheet drawing processes of manufacture which are used 
exclusively by them and their licensees abroad. Under agreements 
with the parent companies, licensees in foreign countries are prohibited 
from exporting to the United States glass produced by these processes.^' 

Wholesale prices as quoted by leading domestic manufacturers for 
representative types of window glass over a period of years are given 
in table 23. 



Table 23. — Common window glass: Average quoted wholesale prices, f. o. b. plant, 
per box containing 50 square feet of glass, in specified years 





Size bracket 25 united inches i 


Year 


Single strength 


Double strength 




A quality 


B quality 


A quality 


B quality 


1913 


$1.80 
2.96 
2 73 
2.65 
1.84 
1.96 
1.80 
2.21 
2.20 


$1.72 
2.53 
2.22 
2.16 
1.45 
1.52 
1.40 
1.61 
1.90 


$2.37 
4.54 
4.44 
3.94 

2^91 
2.60 
3.00 
3.08 


$2.25 


1923 -- 


3.54 


1926 - 


3.17 


1929 .... 


3.23 


1931 


2.13 


1933 


2.28 


1934 .. . 


2.00 


1935 


2.35 


1936 .- 


2.65 







> Size brackets are the sum of the length and width of the glass. 

Source: Data obtained by the Taxifl Commission from domestic manufacturers. 

There were no significant price changes during the period 1936-39. 
Since single strength B quality glass is the most important type used, 
it reflects the main price trends. In general the price of this item 
follows closely changes in general business conditions. During the 
years of depression, especially in 1934, price cutting prevailed gen- 
erally. Those conditions led in 1935 to the formation of the Fourco 
Glass Co. which was intended to strengthen the position of small 
independent producers. 

'0 Those companies use the Fourrault (Bclpian patented) prnco.';s of slioot drawing. 

11 The sheet glass industry in Kuropciin countries is strontily (■art(liz<Ml not only within each country 
but internationally as well. 'I'hosc orijaiiiziitions perform the usual carlcl functions of price and produc- 
tion control and the allocation of inarkcis to member concerns. The two largest American glass manufac- 
turers exert an influence over the European industry through their financial interests therein, and through 
their control over important patents used in the manufacture of sheet glass. 



CONCENTRATION OF ECONOMIC POWER 53 

Delivered prices conform in general to a multiple-basing point 
system. Plants have been located, so far as supplies of raw materials 
permit, in various sections of the country in order to minimize freight 
charges. Prices for sheet glass are usually quoted as f. o. b. plant 
with freight equalized with the nearest competing plant to the buyer. 
A customer buying glass from a distant plant pays the same freight 
charges he would have paid if the glass had been purchased from a 
nearby plant. The producers try to share in the large national 
markets regardless of the location of their plants. This practice of 
shipping into one another's territory, with little regard to economy 
of freight costs, has been a disturbing practice in the industry and it 
is alleged to have been another reason for the formation of the Fourco 
Co. 

Rolled glass and polished wire glass are produced in the United 
States by nine companies. Two companies (Mississippi Glass Co. 
and Blue Ridge Glass Corporation) account for over 80 percent of 
the output of rolled glass (the first for about 50 percent), and they 
also account for over 90 percent of the total output of polished wire 
glass. Several of the smaller companies are engaged primarily in the 
production of specialties. The Mississippi Glass Co. sells to the 
jobbing trade in various sections of the country. It also supplies a 
substantial portion of the rolled glass distributed by other glass 
companies which do not manufacture rolled glass, but desire to offer 
a full line of rolled glass, plate glass, window glass, and other building 
materials. The output of the Blue Ridge Glass Corporation is sold 
by the Libby-Owens-Ford Glass Co. which does not produce rolled 
glass. 

Wholesale prices for rolled glass and polished wire glass, as quoted 
by leading domestic manufacturers for representative types over a 
period of years, are given in table 24, 

Table 24.— Rolled glass and polished wire glass: Manufacturers' quoted prices, 
f. o. h. plant, for representative kinds in stock sheets, in specified years 

(Per square foot] 



Year 


Rough and 
ribbed 
glass 


Figured 

glass 


Rough and 

ribbed wire 

glass 


Figured 
wire glass 


Polished 
wire 
glass 1 




J^inch 


H inch 


H inch 


H inch 


Vi inch 


1913 

1920 . - 


$0.04 
.105 
.07 
.055 
.048 
.045 
.05 
.05 
.05 
.045 


$0.05 
.125 
.085 
.09 
.07 
.06 
.07 
.08 
.08 
.065 


$0.09 
.21 
.155 
.13 
.103 
.09 
.10 
.11 
.12 
.09 


$0. 09 
.21 
.155 
.15 
.123 
.11 

!l2 
.14 
.117 


$0.43 


1924 


75 


1929 

1930 

1931 


.46 
.45 
.43 


1932 


1934 


50 


1936 


45 


1938 









1 Average for various sizes. 

Source: Data obtained by the Tariff Commission from domestic manufacturers. 



With the exception of the immediate post-war years when the de- 
mand for building glass increased sharply, prices have changed very 
little from year to year. Three of the items, however (figured glass, 
rough wire glass, and figured wire glass) show more variation in price 



54 CONCENTRATION OF ECONOMIC POWER 

than the other two. Delivered prices are based on freight equahzation 
with the nearest competing plant to the buyer. 

Structural glass is produced in the United States by four companies. 
Two of these companies (Pittsburgh Plate Glass Co., and Libby- 
Owens-Ford Glass Co.) account for about 80 percent of the total out- 
put; the first produces about 60 percent of the total output. Since 
structural glass of many types are produced, there arc no price data of 
any significance for year-to-year comparisons. 

Laminated glass is produced by seven domestic manufacturers. The 
two largest compaides (Libby-Owens-Ford and Pittsburgh Plate Glass) 
account for about 75 percent of the total output. They are in a 
dominant position with regard to the sale of laminated glass because of 
contractual relations with the large automobile manufacturers. The 
Ford Motor Co. makes laminated glass for its requirements, which 
represents about 20 percent of the total output. In some years it 
produces nearly all of the glass used for tliis product. The other 
manufacturers of this product, with the exception of the American 
Window Glass Co., do not manufacture glass, but limit their operations 
to the laminating of purchased glass. Satisfactory price data for 
year-to-year comparisons are not available. 

The foregoing brief analysis of trends in concentration indicates that 
two companies, the Pittsburgh Plate Glass Co. and the Libby-Owens- 
Ford Glass Co., have achieved a dominant position in the flat-glass 
industry. This position is especially clear-cut with regard to plate 
glass, structural glass, and laminated glass. In the sheet-glass in- 
dustry the degree of concentration is less pronounced, but the above 
companies are important producers. Price trends of plate and sheet 
glass reflect roughly the difference with regard to concentration. 
Although these two companies do not produce rolled glass and polished 
wire glass, they apparently have satisfactory arrangements with the 
two large producers in that industry which enable them to complete 
their selling line of glass products. During the same period producers 
in the flat-glass industry in European countries combined and organ- 
ized both on a national and international basis. The two largest 
companies in the United States, the Pittsburgh Plate Glass Co. and the 
Libby-Owens-Ford Glass Co., are connected by direct o^\^le^ship, 
licenses, or agreements with the European industry. 

Several factors are important in an historical interpretation of the 
trends in concentration in the flat-glass industry. In the early stages 
increased concentration seemed to be largely the result of efforts to 
combine horizontally hulependent producers into one company without 
changing substantially the scale of production in any one plant. 
Tariff protection by restricting severely foreign selling in the domestic 
market facilitated greatly the early combination movement. Later, 
when the transition from hand processes to machine processes became 
more nearly complete, concentration occurred largely because of the 
economies of large-scale production. This development, however, 
was based in part on the use of patents, and consequently, some reduc- 
tion in the number of producers hi recent years cannot be attributed to 
the changing scale of production. Tariff' protection, moreover, 
became less important as a facilitating factor when concentration both 
nationally and internationally became more dependent on large-scale 
production and the use of patented processes. Less important 
features of the recent trends in concentration are the growth of vertical 



CONCENTRATION OF ECONOMIC POWER 55 

integration and the emphasis on a complete selHng line. Although the 
efficiency of plant operations has been increased, the practice of freight 
equalization indicates a lack of economy with regard to transportation 
costs. 

5. INDUSTRIAL CONCENTRATION AND TARIFF PROTECTION: AN EVALUA- 
TION OF EXISTING CONDITIONS, SUGGESTED CHANGES, AND THEIR 
PROBABLE EFFECTS 

The flat-glass industry of the United States has received tariff aid 
since 1789; it is no longer an infant. ^^ During the last decade it has 
become almost completely mechanized and the domestic industry was 
a pioneer in many of these technical improvements. Undoubtedly 
the very substantial and prolonged tariff protection received in the past 
provided in part a basis for the expansion and recent technical achieve- 
ments of the industry. In view of these achievements, however, and 
in view of the present degree of industrial concentration in the industry, 
the problem of future tariff policy is of primary importance. This 
problem is discussed below with reference to different branches of 
the industry. 

The plate glass industry of the United States is on an export basis. 
In Canada and several other foreign markets the United States has 
displaced Belgium as the chief source of supply for plate glass. 
Imports are relatively very small (less than exports), are consumed 
in and near the ports of entry, and are used principally in the building 
and furniture industries. The main domestic market, the automobile 
industry, is supplied by domestic producers. They have better 
facilities for manufacturing large quantities of partially standardized 
automobile sizes of plate glass, for transforming these into suitable 
shapes and dimensions, and for converting them into laminated glass. 
Proximity of the domestic producers to the automobile manufacturing 
centers gives them an advantage in transportation charges and also 
enables them to render promptly services of all kinds. Tempered 
plate glass, a substitute for laminated glass, which is used more 
abroad than in the United States, is a potential factor in the import 
situation because foreign producers have had more experience with 
its production. At present tempered plate glass is not a close sub- 
stitute for laminated glass and in view of the recent improvements in 
laminated glass it is not likely to become an important factor in the 
domestic market. If future developments become more favorable for 
tempered plate glass, the two large domestic manufacturers of plate 
glass and laminated glass would certainly be able to overcome very 
quickly any initial handicap imposed by lack of experience. In 1937, 
for example, 7,322 square feet of tempered plate glass, valued at 
$6,626, was exported by domestic producers. 

Because of the above factors a substantial reduction in the duty on 
plate glass and laminated glass, or even its complete removal, would 
probably result in no large increase of imports. Only a very moderate 
increase has occurred under the Belgian agreement (reduction of about 
33)^ percent). Any moderate increase would be confined to coastal 
areas and would consist mainly of plate glass for use in the building 
and furniture industries. Prices of plate glass in and near the main 

12 The industry, however, opposed tariff reductions in the trade agreements. Committee for Reciprocity 
Information, stenographer's mi.iutes '.f hearings, Czechoslovakia and Belgium. 



5g CONCENTRATION OF ECONOMIC POWER 

ports of entry would be lowered. Concentration in the domestic 
industry would not be appreciably affected. 

The sheet fjlass industry is not on an export basis. '^ Usually about 
one-half of the relatively small imports of sheet glass consists of 
window glass (16 to 26 ounces per square foot) and the remainder of a 
varying proportion of thin glass (less than 16 ounces) and heavy glass 
(over 26 ounces per square foot). Heavy sheet glass is a substitute 
for plate glass in uses such as shelving, show windows, and table tops. 
The thin sheet glass which is used in the manufacture of photographic 
dry plates and lantern and microscopic slides is the only type of 
imported sheet glass which is sold in inland markets (Rochester, N. Y. 
and St. Louis, Mo.).^* Transportation charges on shipments of 
window glass frequently amount to as much as 15 to 25 percent of the 
wholesale price (f. o. b. plant). Many of the domestic plants are 
located some distance inland and transportation charges from these 
plants to coastal markets usually exceed similar charges from Belgian 
plants to these same markets. Although the specific duties on sheet 
glass are moderately high in terms of an average equivalent ad valorem 
rate, a substantial reduction would probably not increase greatl}^ the 
volume of imports. During the brief period of the Czechoslovak 
agreement (a reduction of about 30 percent), imports decreased. 
Imports in recent years have not exceeded 6 percent of domestic 
consumption. With little or no tariff protection any increase in the 
imports of window glass which could not be stopped by the large 
domestic manufacturers because of their agreements, patent, and 
otherwise, with foreign producers, could be held to a small increase 
in the coastal areas by price reductions. These price reductions 
would probably accentuate concentration in the domestic industry 
and reduce somewhat excess capacity, but imports, actual and 
potential, would be a partial regulator of domestic price. 

The specific duties on rolled glass are moderate in terms of an 
equivalent ad valorem rate. Since it is a comparatively heavy and 
inexpensive glass, freight charges, both inland and ocean, have 
restricted imports to coastal areas. Imports are small compared with 
domestic production, and are probably about equal to exports. 

Polished wire glass, which is produced mainly by the two large 
manufacturers of rolled glass, has a rather limited market, namely, in 
the construction of the more expensive types of commercial and public 
buildmgs. Since imports in recent years have been nil or negligible, 
the equivalent ad valorem rate has varied greatly and has very little 
significance. Exports are probably very small and may exceed 
imports. Although the duty was reduced in the Belgian agreement 
about 33 K percent, imports showed no appreciable change. 

A substantial reduction in the duties on these products would 
probably not increase imports appreciably, would lower slightly prices 
in the coastal areas, would reduce excess domestic capacity, and 
would increase concentration in the domestic uidustry. 

Imports of structural glass have consisted principally of black and 
white glass divided about equally between thicknesses of more than 

" Exports for 3 years 1936-39 averaged loss than one-tenth of 1 percent of domestic production. 
i< Domestic production of sheet glass usually consists of about 85 percent window glass, 13 percent heavy 
glass, and 2 percent thin glass. 



CONCENTRATION OF ECONOMIC POWER 57 

and less than one-half inch. Although the duty was reduced in the 
Belgian trade agreement, imports have remained negligible as compared 
with domestic production. Because of high transportation costs to 
inland markets, imports are consumed in and near the ports of entry. 
Exports are not separately reported. Siuce the two large producers 
of structural glass are also the two largest producers in the flat glass 
industry, a substantial reduction in the duty would not affect the 
import situation appreciably except with regard to a slight lowering 
of prices in the coastal areas. Elimination of the duty would increase 
the concentration in the domestic industry. 



CHAPTER V 
THE BORATES INDUSTRY 

1. BORATES AND THEIR USES 

Borax (the sodium salt of pyroboric acid, in commercial practice) 
and boric acid (or boracic acid) are the borate products of commercial 
importance. Borax is obtained by refining certain minerals or from 
lake brines; boric acid, mainly by treating borax with sulphuric acid. 
There are 60 or so known borate minerals of which only about a half 
dozen are of much importance. The commercial value of these is 
largely determined by the boron oxide content which averages around 
50 percent m the best crude minerals. The mineral Colemanite was 
of principal importance until the end of the 1920's when it was dis- 
placed by Kernite. Borax is obtamed directly from the brine of several 
lakes in California, particularly Searles Lake, by a process of evapora- 
tion and fractional crystalization. About 1 ton of borax is obtained 
as a coproduct of 2 tons of muriate of potash. No crude borate is 
produced in the process. 

Borax and boric acid have many similar uses. They are important 
ingredients in the manufacture of enamels for coating metalware 
(bathtubs, sinks, etc.); in the manufacture of glass, particularly heat- 
resisting glasses used in kitchenware, lamp chimneys, and signal lenses 
and in the production of glazes for tiles, earthenware, and china. 
Other important uses are in the manufacture of adhesives, detergents, 
sizing compounds, metallurgical fluxes, and starches. Borax is used 
in the washing of citrus fruits to prevent decay ; in the leather industry 
for soaking, cleaning, and neutralizing solutions; and in the textile 
industry as a ''buffer" in dye-baths and for the degumming of silk. 
It is used, also, as a household cleanser and water softener. Boric 
acid is used to some extent in the manufacture of abrasives, and is 
widely used in pharmaceutical preparations and cosmetics. 

World production of borates is largely controlled by a British 
concern, Borax Consolidated, Ltd., which is engaged in refining borate 
minerals (obtained almost entirely in the United States) in most of 
the important consuming countries, including the United States. Its 
only serious rival in the industry is an American concern (the American 
Potash & Chemical Corporation) that produces from lake brines. In 
the last 10 years the United States has furnished 90 percent of the 
world output of crude borates; about 50 percent of the world output 
of borax; and around 75 percent of the world production of boric acid. 
Borate minerals are available in large quantities in Chile, Peru, 
Argentina, Bolivia, Turkey, Italy, and the Soviet Union. 

2. TARIFF HISTORY 

All the important borate consuming countries (the United States, 
Great Britain, France, Germany, etc.) assist by tariff and similar 
protection the domestic refining of crude borate materials, which are 

59 



60 CONCENTRATION OF ECONOMIC POWER 

usually allowed free entry. The trade legislation affecting borates is 
known to have been considerably influenced by the world-wide con- 
cern, Borax Consolidated, Ltd. 

United States imports of borate materials, crude and refined, are 
negligible in comparison with domestic production. Imports of crude 
borate materials were dutiable at rates ranging from V/i to 3 cents 
per pound from 1883 to 1913, but became free of duty under the 
Tariff Act of 1913 and subsequent acts. There have been no imports 
in most years since 1929. 

Imports of refined borates (borax and boric acid), mostly special 
products for technical and pharmaceutical purposes, were dutiable at 
rates ranging from 2 to 5 cents per pound from 1883 to 1913. Under 
the act of 1913 and later acts, borax has been dutiable at one-eighth 
cent per pound. The equivalent ad valorem of this duty since the 
World War has averaged 12 percent and has ranged from 3 percent in 
1919 to 54 percent in 1928. In each year since 1932 it has averaged 
5 percent. 

The dut}' on boric acid was three-fourths cent per pound under the 
act of 1913; iK cents per pound under the act of 1922; and has been 
1 cent per pound under the act of 1930. The ad valorem equivalent 
averaged 11 percent from 1919 to 1922, 26 percent from 1923 to 1930, 
and 16 percent from 1930 to 1938 (21 percent in 1933 and 11 percent 
in 1937). 

3. DOMESTIC PEODUCTION, IMPORTS, AND EXPORTS 

Figures representing the combined domestic output (since 1900) of 
borate minerals and borates derived from brine are published by the 
Bureau of Mines. These show a fluctuating but steadily increasing 
output. It amounted to 34,430 short tons, valued at S661,400, in 
1903; 108,875 tons ($3,610,000) in 1917; 181,915 tons ($3,024,000) in 
1932; and 358,898 tons ($7,233,000) in 1937. During the 35-3^ear 
period from 1903 the aggregate production has been slightly over 
4,000,000 tons valued at $97,000,000. Probably 75 percent of the 
output prior to 1921 and 50 percent since that year can be credited to 
the American affiliate of Borax Consolidated, Ltd. (Pacific Coast 
Borax Co.). Durmg the latter period probably 40 percent can be 
credited to the domestic concern which produces from brine (American 
Potash & Chemical Corporation), 

The Census of Manufactures reports the output (for sale) of refined 
borax and boric acid. The production of borax increased from 21,000 
short tons, valued at $2,123,000 in 1904 to a high of 126,000 tons 
($3,416,000) in 1937. The 1937 output, on a volume basis, was 37 
percent above that in 1929, although on a value basis it was 33 
percent below that of 1929. The unit value has decreased steadily 
from a maximum reached in 1919. It was 7.8 cents per pound in 
that vear; 3.9 cents per pound in 1929; and 1.4 cents per pound in 
1937."^ 

Output (for sale) of boric acid has increased similarly. It amounted 
to 3,478 short tons, valued at $527,000 in 1904; 13,028 tons ($1,541,000) 
in 1929; and 20,262 tons ($1,545,000) in 1937. The unit value per 
pound was at a maximum of 14 cents in 1921. It decreased to 5.9 
cents in 1929, aid averaged 3.8 cents in 1937. 



CONCENTRATION OF ECONOMIC POWER Ql 

The only prices available for borax and boric acid are those pub- 
lished by the trade journals. They do not cover the bulk of sales, 
which are by contract, and are useful only to show trend. The aver- 
age spot price in New York for borax (crystals) increased regularly 
from 3.8 cents per pound in 1913 to 8.2 cents in 1920, and then de- 
creased just as regularly to 2.1 cents per pound in 1934.^ The aver- 
age spot price has not fluctuated much from 2.4 cents per pound since 
1934. The spot price (in barrels) for boric acid increased from 7 cents 
per pound in 1913 to 14.3 cents in 1920 and subsequently declined to 
4.5 cents in 1933. Since 1933 there has been a gradual increase to 5.5 
cents per poimd in 1936-37. 

Lower production unit values and spot prices for borax and boric 
acid are in large part due to the discovery and use of the high-grade 
mineral, Kernite, which involves much lower refining costs. 

Production of borates in the United States is concentrated in Cali- 
fornia; shipment to centers of largest consumption, in the industrial 
East, is chiefly by rail. 

Combined exports of borates, crude and refined, and boric acid have 
steadilj'^ increased and have become exceedingly large, amounting to 
about 45 percent of domestic production. The}^ consist in consider- 
able part of unrefined borate minerals,- shipped by the American 
affiliate of Borax Consolidated, Ltd., to refineries in other countries. 
Crude borates and refined borates are classified together in United 
States export statistics under the heading, sodium borate (borax), 
while boric acid is separately recorded. Exports falling in the first 
classification are the largest. They amounted to 14,300,000 pounds, 
valued at $1,207,000 in 1920; to 160,000,000 pounds ($2,935,000) in 
1929; and to 308,000,000 pounds ($4,716,000) in 1937. The unit 
value of these exports decreased from 8.4 cents per pound in 1920 to 
1.8 cents per pound in 1929 and to 1.5 cents in the last few years. 
An anal3^sis of the imports into Great Britain, Germany, France, and 
Belgium (the principal foreign markets) for the years 1929 to 1936, 
inclusive, shows that about 60 percent of the imports from the United 
States consists of unrefined borates. 

The proportion of refined borax in exports classified as sodium borate 
is known to have decreased; it is possible, however, that the exports 
have increased steadily. Exports of boric acid, for wliich statistics 
are available, increased from 727,082 pounds, valued at $79,000 in 
1924; to 5,024,000 pounds ($180,000) in 1929; to 9,257,000 pounds 
($498,000) in 1936 ; and to a high point of 15,844,000 pounds ($735,000) 
in 1937. On a volume basis, the exports in 1937 represented 39 per- 
cent of the domestic output. The unit value per pound averaged 11 
cents in 1924, 4 cents in 1929, and 5 cents in 1937. 

The United Kingdom and Germany have taken about 50 percent 
of total exports classified as sodium borate, largely unrefined borate 
materials as previously noted. Other countries regularly taking sub- 
stantial quantities are Canada, the Netherlands, France, Japan, Bel- 
gium, Italy, Spain, Mexico, Cuba, China, Australia, and New Zealand, 
mostly in refined grades. Ordinarily the exports go to 40 or so coun- 
tries. Exports of boric acid have gone chiefly to the United Kingdom 
and Canada, with Germany, France, and Japan as other principal 

1 Figures shown are from statistics published by the Bureau of Labor Statistics. 

2 These are usually concentrated by the removal of shale and clay and by partial dehydration. 



52 CONCENTRATION OB" KCONOMIC POWER 

markets. Mexico, Cuba, Colombia, China, New Zealand, and Aus- 
tralia also frequently take substantial quantities. 

While the trend in domestic production and exports has been 
upward, imports of borates, crude and refined, hav^e declined. The 
imports have been negligible, in most years, in comparison with both 
domestic production and exports, and have been characterized by 
extreme fluctuations. They consist almost wholly of refined borates, 
chiefly boric acid for technical and pharmaceutical purposes. The 
bulk of imports is believed to be supplied by mines and refineries 
belonging to Borax Consolidated, Ltd. 

From 1905 to 1914 imports of crude borates ranged from 40 pounds, 
valued at $4, in 1908 to 57,711 pounds ($2,436) in 1900; and averaged 
about 16,000 pounds ($1,400) in the period. During the World War 
years, the imports were negligible or nonexistent. From 1921 to 1929, 
they ranged from 7,800,000 pounds ($167,512) in 1921 to 18,900,000 
pounds ($373,403) in 1922, and averaged 10,500,000 pounds ($178,000). 
These fairly sizeable imports (estimated at around 7 percent of do- 
mestic production) were probably due mostly to the temporary in- 
ability of the domestic industry to supply total requirements, wliich 
were increasing rapidly during the period. It may also have been 
that one of the smaller producing companies (Sterling Borax Co.), no 
longer having its own direct source of crude supply after the sale of 
its mine in 1921, made the bulk of these importations. In most years 
since 1929 there have been no imports of crude borates. In 1931, 
1,100,000 pounds, valued at $16,507, were imported; and, in 1933, 
2,100,000 pounds, valued at $30,742. 

Imports of boric acid decreased irregularly from 986,000 pounds, 
valued at $33,200, in 1906, to 7,334 pounds ($688) in 1937. They 
averaged 478,000 pounds ($18,000) from 1905 to 1913; 382,000 pounds 
($22,000) from 1914 to 1919; 329,000 pounds ($22,000) from 1920 
to 1929; and 50,000 pounds ($2,600) from 1930 to 1937. From 1900 
to 1925 the imports ranged from 2 to 5 percent of the domestic out- 
put, but since 1925 they have consistently been below 1 percent. 

Imports of refined borax have also declined and represent less than 
1 percent of domestic output. The imports were quite large at the 
start of the century and reached a high point of 2,268,000 pounds, 
valued at $77,258, in 1907. In the next few years they decreased 
rapidl}^, however, and have since been comparatively insignificant 
except for 1921, 1924, and 1928. In these years thev amounted, 
respectivelv, to 226,000 pounds ($12,477), 169,000 pounds ($6,944), 
and 211,000 pounds ($4,906). In 1937 imports amounted to 724 
pounds, valued at $176. 

Prior to 1925 imports of crude borates came very largely from 
Chile with minor quantities from Great Britain (probably of Turkish 
origin). The imports in more recent years have been chiefly from 
Turkey. Italy has usually supplied over 90 percent of imports of 
boric acid. The United Kingdom, France, and Germany have been 
other sources. Imports of refined borax have come principally from 
the United Kingdom, and also from Germany, France, and Italy. 

4. TRENDS IN CONCENTRATION 

The outstanding concerns in the domestic borates industry are the 
Pacific Coast Borax Co., an affiliate of Borax Consolidated, Ltd., and 



CONCENTRATION OF ECONOMIC POWER Q3 

the American Potash & Chemical Corporation, which is primarily 
interested in fertilizer. The fii'st concern produces borates from the 
mineral kernite; output is exported in large quantities (mostly un- 
refined) and is also sold in the domestic market. The second concern 
produces refined borates directly, along with muriate of potash, from 
lake brines. Its output of borates is sold almost entirely in the 
domestic market. The Thi-ee Elephant brand of this company on 
its borax and boric acid has become nearly as well known as the 
Twenty-mule-team brand of the Pacific Coast Borax Co. 

The borates industry in the United States can be said to have 
come into existence in the 1870's when a company, which later 
became the Pacific Coast Borax Co., was organized in Nevada. 
Operations of this company were transferred to California about 1885, 
in order to concentrate on the recovery of Colemanite, a mineral 
discovered in Death Valley. British capital became interested in the 
industry, and in 1899 the Pacific Coast Borax Co., became the major 
subsidiary of Borax Consolidated, Ltd., which was registered in 
Great Britain, in the same year — 

to acquire the borate and colemanite deposits, boracite mines, railways, factories, 
etc., in the United States, England, France, Austria, Turkey, and South America 
of various companies, including Borax Co., Ltd., Pacific Borax & Redwoods 
Chemical Works, Ltd., Soc. Lyonnaise des Mines et lesines de Borax.* 

From the time of its organization Borax Consolidated, Ltd., has 
been the leading borates producing enterprise of the world without 
any serious rival except perhaps the American Potash & Chemical 
Corporation. 

Production statistics indicate that the Pacific Coast Borax Co. 
has been the most important producing subsidiary of Borax Con- 
solidated, Ltd. With adequate financial resources, it has been able 
to purchase an extensive array of the best claims, and to build rail- 
roads, refineries, etc., in order to work the choicest of these claims 
to the best advantage. In 1928 the company (reorganized in 1914) 
concentrated its mining activities at Kramer, near Los Angeles, about 
150 miles from seaboard. In 1930-31 the refinery at Wilmington, 
Calif, (built in 1924), was enlarged. 

The other leading domestic producer of borates, the American 
Potash & Chemical Corporation, was originally organized in 1913 as 
the American Trona Corporation. The present name was taken fol- 
lowing a reorganization in 1926. The company, as previously noted, 
uses a process of evaporation and fractional crystallization to obtain, 
from lake brines, approximately 1 ton of refined borax * as a coproduct 
to 2 tons of muriate of potash. The latter product is marketed 
mostly for fertilizer use, and the company has been until recently the 
largest producer of this product in the United States. The capacity 
of the plant (built on Searles Lake, Calif., in 1916, and later ex- 
panded) is reported as being about 80,000 tons annually of refined 
borax. A portion of the output of refined borax is converted to 
boric acid, the plant capacity for this product is at least 25 tons per 
day. In 1934 the company put into operation a plant for the re- 
covery of sodium carbonate and sodium sulphate. Earnings of the 
company continued through the depression years, although dividends 
were omitted from 1932 to 1935, inclusive. 

3 Moody's Manual of Investments. 

* The process of the company is such that it does not produce a crude borate. 



64 CONCENTRATION OF ECONOMIC POWER 

Production of borates by concerns other than Pacific Coast Borax 
Co. and American Potash & Chemical Corporation has been relatively 
small. The Stauiler Chemical Co. of San Francisco has controlled 
two concerns, Sterling Borax Co., and the Russell Borate Alining Co. 
(later Borax Mines, Inc.) which from 1907 until after the World War 
constituted about the only source of real competition to Pacific Coast 
Borax Co.* Sterling Borax Co. was one of the most successful of 
the smaller companies in the borates industry. Organized as a merger 
of five interests,^ it was operated from 1907 to 1921, when its mine 
at Lang, Calif, (near Los Angeles) was acquired by the Pacific Coast 
Borax Co. Since 1921 it has continued as a refiner, with plants at 
Chicago and New Brighton, Pa. 

Another company apparently closely associated with the Stauffer 
Chemical Co. is the United States Borax Co., prior to 1934 the 
Western Borax Co. This company operates in the vicinity of 
Kramer, Calif., and markets at least part of its output through 
Borax Union, a Staufl'er subsidiary. 

In 1924-25 Suckow Borax Mines Consolidated, Inc., was organized 
to develop certain properties in the neighborhood of Kramer. Pro- 
duction of the company w^as intermittent and small until 1934, when 
its properties were leased for 10 years to the Pacific Coast Borax Co. 

Besides the American Potash & Chemical Co., there have been other 
concerns producing borates from lake brines. The West End Chem- 
ical Co., organized about 1919, has been obtaining borax smce 1927 as 
a byproduct in the production of sodium bicarbonate and soda ash. 
Since 1929 the company has been marketing its borax, at least in part, 
tkrough Borax Union, subsidiary of the Stauffer Chemical Co. An- 
other company to undertake the production of borax from brines was 
the Burnham Chemical Co. Organized about 1920 to take advantage 
of certain newly patented processes, the company received con- 
siderable publicity for several years as a stock promoting proposition. 
A fair-sized plant was finally erected (near that of the W^est End 
Co.) and a small output is understood to have been obtained from 
1926 to 1929, since when nothing further is laiown of the company. 
The only other company producing borax from lake brines is the 
Pacific Alkali Co., with plant at Bartlett on Owens Lake. A Los An- 
geles group of capitalists, known as the Kuhnerts Syndicate, organized 
the company about 1926, and the plant has been producing natural 
sodium bicarbonate, sesquicarbonate, and borax in moderate amounts 
since 1929. It is understood that at times the bulk of the output has 
been exported. 

5. MONOPOLY AND TARIFF PROTECTION: AN EVALUATION OF EXISTING 
CONDITIONS, SUGGESTED CHANGES, AND THEIR PROBABLE EFFECTS 

The domestic borates industry is an example of a high degree of 
industrial concentration, but tariffs seem to be of minor importance 
in its development. Although the. duties were restrictive during the 
early period, they had little connection with the growth of concentra- 
tion. Financial resources which were international in scope and the 

« American Potash and Chemical Corporation not an important factor durinfc that period. 

« American Borax Co., Frazier Borate Co., Stauffer Chemical Co. (all in California), Thos. Thorkildson 
Co., Chicago, and the Brighton Chemical Co., New BriRhton, Pa. The latter 3 companies were refiners 
of borate materials mined by American and Frazier. Stauffer owned the controlling interests. 



CONCENTRATION OF ECONOMIC POWER Q5 

acquisition of excellent mineral deposits were the main factors in the 
development of concentration. 

The duties on refined borax and boric acid have been reduced from 
5 cents per pound in 1890 to one-eighth and 1 cent per pound, respec- 
tively, in the act of 1930. Since 1913 imports of crude borates have 
been free of duty. These changes in duties reflect the shift of the 
domestic industry to a very large export basis. Apparently the 
duties no longer restrict imports. The domestic industry, however, 
is dominated by two companies, one of which is a subsidiary of a 
very important British company in the borax industry. Although 
removal of the duties might not have any effect on the import- 
domestic price situation, it would eliminate the possibiUty of having 
the leading producers use the duties as a partial aid in the allocation 
of markets. 



CHAPTER VI 

SOFTWOOD LUMBER OF THE UNITED STATES AND THE 
TRADE AGREEMENTS 

1. INTRODUCTION 

The following report is an analysis of the softwood lumber industry 
of the United States as affected by recent changes in import charges.* 
Since hardwoods and cabinet woods involve separate problems and 
are of relatively less importance, they are not included. Softwood 
lumber, as indicated later in the report, does not include logs, but con- 
sists almost entirely of sawed items such as boards, planks, etc., pro- 
duced from coniferous trees. The domestic saAvmill industry, which 
is primarily affected by the recent changes, is located in the Pacific 
Northwest and in the Southern States. The former produces mainly 
fir, pine, hemlock, cedar, and spruce; the latter produces pine and 
cypress. The industry is subject to onlv a very moderate degree of 
industrial concentration. 

Softwood lumber imported into the United States comes almost 
entirely from Canada. Both Canada and the United States export 
softwood lumber to the United Kingdom, but the Canadian lumber 
enters free of duty and the American lumber is subject to duty. In 
the recent trade agreements with Canada (first and second) and the 
United Kingdom the import charges of the United States on softwood 
lumber were reduced for the benefit of Canada and in turn Canada 
agreed to a reduction by the United Kingdom of the preferential 
tariffs against American lumber for the benefit of the United States. 
An evaluation of the immediate effects of the above changes on the 
American softwood-lumber industry is the subject of the subsequent 
analysis. Although the American softwood-lumber industry ma}^ be 
affected, favorably or unfavorably, by tariff changes in the above 
agreements on related softwood manufactured products, such as ply- 
wood, doors, box shooks, and crating stock, and by tariff changes on 
other products in these agreements as well as in trade agreements with 
other countries, no accurate allocation of these indirect effects can 
be made to the softwood-lumber industry. To evaluate these 
indirect effects involves the trade-agreements program as a whole, 
which is not the subject of this report. 

' For more detailed information with regard to the American lumber industry, international trade in soft 
wood lumber, and tariffs on softwood lumber see the following published reports: 

U. S. Tarifl Commission, Washington, D. C: Imports, Exports, Domestic Production and Prices: 
Petroleum, Coal, Lumber, etc., 1937, pp. 34-58; (same title) 1939, pp. 23-37. Second Trade Agreement 
between the United States and Canada, vol. II, 1938, schedule 4, pp. 1-12. Changes in Import Duties Since 
the Passage of the Tariff Act of 1930, January 1939. 

Committee for Reciprocity Information: Stenographer's minutes of the hearings on the second Canadian 
agreement: Ward and Paul, official reporters, Washington, D. C, vol. 1, pp. 121-188. 

Department of State, Washington, D. C: The New Trade Agreement With Canada, November 17, 19.38, 
pp. 39-40, 50-52, 72-73, 96, and 111. The Trade Agreement With the United Kingdom, November 17, 1938. 
pp. 8-9, 36-43, 112. Memorandum on the Lumber Concessions in the United States-Canadian, and the 
United States-United Kingdom Trade Agreements. 

U. S. Government Printing Office, Washington, D. C: Text of Trade Agreement Between the United 
States and the United Kingdom. Text of New Trade Agreement Between the United States and Canada. 

67 



gg CONCENTRATION OF ECONOMIC POWER 

2. TARIFF HISTORY 

Under the Tariffs Acts of 1913 and 1922, imports of softwood lumber 
entered the United States free of duty.' In the Tariff Act of 1930 
(par. 401), a duty of $1 per thousand board feet was imposed on im- 
ported lumber of fir, spruce, pine, hemlock, and larch. Rough lumber 
of the same species, not further manufactured than planed on one 
side, which is imported almost entirely from Canada, was provisionally 
free of duty until June 21, 1932.^ Other softwood lumber, principally 
cedar, was free of duty (par. 1803).* 

Nearly all of the lumber imports, classified above, come from Canada 
and consist mainly of fir, spruce, and pine. In 1931 approxin:ately 
half of the Canadian imports, on a value basis, were free of duty; and 
the other half were dutiable at $1 per thousand board feet, which 
averaged about 5 percent ad valorem. The Tariff Act of 1930, there- 
fore, provided only a mild form of protection for the softwood-lumber 
industry. 

The Revenue Act of 1932 changed substantially the amount of pro 
tection. It levied an import excise tax, effective June 21, of $3 per 
thousand board feet on all imported lumber except certain hardwood 
flooring. Since Canada revived at the same tune an excise tax of 3 
percent on lumber imported from the United States, the provisional 
duty of $1 on rough lumber (par. 401) imported from Canada became 
effective.^ P>om June 21, 1932, to December 31, 1935, nearly all soft- 
wood lumber imports paid a combined duty and tax of $4 per thousand 
board feet.^ The ad valorem equivalent of the combined charge 
averaged about 18 percent during the years 1933-35. Since January 
1, 1936, under trade agreements with Canada the combined duty and 
tax is $2.^ It averaged about 9 percent, equivalent ad valorem, 
during the years 1936-37. The import charge of $2 applies to the 
bulk of softwood lumber imports. The exceptions are principally 
cedar (par. 1803), subject only to the reduced excise tax of $1.50; ^ and 
northern white pine, Norway pine, and western white spruce subject 
only to the reduced duty of 50 cents (Revenue Act of 1938). Although 
the above recent changes have reduced substantially the amount of 
protection for softwood-lumber, it still renuiins more than twice the 
amount provided originally by the Tariff Act of 1930; that is, the ad 
valorem equivalents are now about twice as high as formerly and all 
softwood-lumber imports are now subject to duty or tjix, or both. 

In the second trade agreement with Canada, effective January 1, 
1939, Canada reduced the dut}^ on dressed lumber, other than hard- 
wood flooring, to 10 percent ad valorem. Prior to the first agreement, 
effective January 1, 1936, the duty was 25 percent.^ Rough lumber 

i In the act of 1922, a provisional duty on softwoods was included, but it never was imposed. 

' Imports from a country contipuous to continental United States which admitted free similar lumber 
imported from the ITnited'States were free of duty (par. 401). 

* Countervailing duties were provided, but never imposed. They were repealed by the Trade Agree- 
ments Act of 1934. Under tliis paragraph lops of all species are free of duty. 

» Even though Canada has now removed the excise tax (repealed in 1939), rough lumber (par. 401) is 
dutiable because the proviso of par. 401 was repealed by sec. 2 (a) of the Trade Agreements Act of 1934. 

6 Softwood lumber other than fir, spruce, pine, hemlock, and larch was subject only to tlie .$3 excise tax, 
principally cedar (par. 1803). The equivalent ad valorem averaged (1933-3.5) about 8 percent. 

' The Canadian agreements reduced the duty and tax 50 percent. In the first agreement annual imports 
of Douglas fir and western licmlock in excess of 2riO,000,000 board feet were not entitled to the reduced rate. 
This quota was never more than 70 percent filled and it was dropped from the second agreement, effective 
Januarv i, 1939. The Revenue Act of 1938, effective July 1, removed the excise tax from lumber of north- 
ern white pine, Norway pine, and western white spruce. Unless renewed the excise tax on other lumber 
expires June 30, 1941. 

> The equivalent ad valorem (1936-37) averaged about 21^ percent. 

« Under the first agreement the duty was 20 percent. 



CON'OENTKATION OF ECONOMIC POWER gQ 

is free of duty. The excise tax of 3 percent applicable to all lumber 
imports (revived in 1932) was removed April 26, 1939. Since the 
United States exports very little softwood lumber to Canada, these 
changes are not significant for the American industry. The important 
changes are included in the trade agreement A\'ith the United Kingdom, 
effective January 1, 1939, which is linked with the Canadian agree- 
ment because of preferential tariffs. 

The United Kingdom prior to 1932 admitted free all lumber im- 
ports. In that year it imposed a duty of 10 percent on softwood 
lumber imported from non-British countries. Imports from Canada 
and other British countries remained free of duty. The preference 
was bound in the Ottawa agreement with Canada (1932).^'' A marked 
diversion of trade, especially of benefit to Canada with regard to 
cheaper grades of lumber and Douglas fir, occurred. The trade agree- 
ment with the United Kingdom removed part of the preferential 
treatment. 

The concessions on softwood lumber granted by the United Kingdom 
to the United States consist of two kinds, namely, immediate reduc- 
tion of duties and provisional reduction of duties. With regard to the 
former the duty of 10 percent is reduced to 16 shillings per standard 
(1,980 board feet), or approximately $2 per thousand board feet 
(about 4% percent ad valorem), on the wider forms and higher-priced 
softwood lumber.'^ On the intermediate grades the 10 percent rate 
is reduced to a scale of 9 to 5 percent. ^^ In the event of wide fluctua- 
tions in the price of lumber the agreement provides for an adjust- 
ment of the value limitations.'^ 

An immediate reduction of the margins of preference against 
American lumber in the British Caribbean colonies, to which Canada 
agrees, to the equivalent of $2 per thousand board feet is made. Under 
the existing arrangement Canada retains a substantial preference in 
the United Kingdom, especially on the cheaper grades of softwood 
lumber, and in the British Caribbean colonies as compared with the 
United States. 

The provisional reduction of duties applies if and when the United 
States excise tax on imports of lumber is removed and the charges on 
lumber imported from Canada under paragraph 401 do not exceed 50 
cents per thousand board feet. Under these conditions all softwood 
lumber of the wider and better grades from the United States would be 
free of duty.'^ On the intermediate grades the 10 percent rate would 
be reduced to a scale of 9 to 1 percent.'^ The provisional treatment 
is more liberal than the existing one with regard to duties, value 

•"Other British countries also established preferential duties. 

11 The reduction applies to all softwood lumber, square sawn (other than box boards, railway sleepers, 
and sleeper blocks), when valued at £18 or more per standard (landed value in the United Kingdom), or 
when 11 inches or more in width. 

12 That is, on softwood lumber, other than box boards, square sawn (regardless of dimensions), valued at 
£16 4s. or more, but less than £18 per standard the duty is 10 percent less 1 percent for each 4 shillings 
by which the value exceeds £16 16s. per standard. 

13 If in 4 consecutive months the average value of sawn softwood imports (exclusive of planed or dressed 
lumber) either exceeds £14 or is less than £10 per standard and after consultation with the U. S. Govern- 
ment, an adjustment of value limitations may be made. The adjustment involves an increase in the value 
limitations by £1 per standard for each complete pound sterling by which such average value exceeds £13 
per standard, or a decrease of like amount when the average value is less than £11 per standard. Restora- 
tion of the original value limitations is to be made as soon as possible after the conditions which gave rise 
to the modifications no longer exist. 

1* That is, all softwood lumber, square sawn (except box boards, railway sleepers, and sleeper blocks) 
valued at £18 or more per standard, or 9 inches or more in width and 15 feet or more in length is provision- 
ally free of duty. 

15 That is, on softwood lumber, square sawn (regardless of dimensions) valued at £16 4s. or more, but 
less than £18 per standard, the provisional duty is 10 percent ad valorem less 1 percent ad valorem for each 
4 shillings by which the value exceeds £16 per standard. 



70 



CONCENTRATION OF ECONOMIC POWER 



limitations, and dimensional qualifications, and finally, under tlie 
above conditions the margins of preference against American lumber 
in the British Caribbean colonies, to which Canada agrees, are to be 
abolished. If the provisional duties became effective, Canada would 
still retain in the United Kingdom a substantial preference, especially 
in the cheaper grades of softwood lumber, as compared with the United 
States. 

3. PRODUCTION OF SOFTWOOD LUMBER IN THE UNITED STATES 

Domestic production of sawed softwood lumber averaged annually 
about 30 billion board feet from 1925 to 1929, and 15 billion board 
feet from 1931 to 1937. Production declined to a depression low of 9 
billion in 1932 (table 25). Yellow pine, Douglas fir, ponderosa pine, 
white pine, and hemlock are the species of greatest importance in 
production. Washington and Oregon, and the Southern States are the 
outstanding producing areas; yellow pine being produced in the South 
and the other species, except white pine, in the Pacific Northwest. 
White pine is produced in northeastern United States, California, 
Idaho, and Montana. 



Table 25. — Sawed softwood timber and lumber: United States -production and 
average unit values at the mill by species, 1931-37 

QUANTITY— THOUSANDS OF BOARD FEET 





1931 


1932 


1933 


1934 


1935 


1936 


1937 


Douglas fir 


4, 648, 455 
960,431 
233, 617 
715, 504 
84, 959 
4, 429, 643 
1, 822, 460 
149, 976 
210, 866 
331,891 
264, 149 


2, 904, 246 
337, 188 
156, 038 
433, 002 
50, 064 
3, 068, 898 
1, 287, 748 
85, 818 
135, 627 
165, 077 
122, 031 


3, 969, 154 
415, 771 
198, 378 
532, 088 
48,006 
4, 445, 577 
1, 689, 773 
111,304 
163. 899 
158,035 
166, 888 


4, 065, 828 
478, 130 
259, 345 
755, 882 
79,416 
4, 472, 503 
1, 806. 220 
139, 807 
282, 149 
178, 977 
217, 101 


4, 772, 449 
578, 325 
289, 353 
854, 266 

97, 734 

5, 960, 246 
2, 527, 553 

180, 531 
328,862 
326, 165 
332, 497 


6, 320, 505 
812, 757 
348, 383 
997, 922 
124, 267 
7,112,616 
2,975,339 
238, 282 
403, 238 
441, 494 
466, 928 


6, 554, 781 
861, 674 


Spruce 


370, 356 


White pine 


1, 012, 008 
140, 806 


Yellow pine 

Ponderosa pine. - 
Cedar 


7, 691, 604 

3, 307, 655 

257. 474 


Redwood 


436, 231 
429, 138 


Other ■"--- 


527, 395 






Total 


13, 851, 951 


8,745,636 


11,898,873 


12, 735, 358 


16, 247, 981 


20, 241, 731 


21, 589, 122 





UNIT VALUE-PER THOUSAND BOARD FEET 






Douglas fir 

Hemlock 


$12.05 
14.13 
23.00 
24.71 
14.18 
16.99 
20.48 
24.08 
29.82 
30.64 


$10. 61 
12.39 
17.73 
21.58 
10.76 
13.32 
16.88 
24.55 
24.33 
24.62 


$13. 57 
14.27 
18.89 
21.45 
13.34 
17.91 
18.57 
25. 91 
26.29 
26.30 


$16. 14 
17.70 
21.75 
23.75 
16.07 
21.64 
20. 51 
27.94 
30.03 
30. 73 


$15.97 
18. 53 
22.09 
25.66 
16.90 
18.24 
20.40 
29.33 
29.77 
29.51 


$17.67 
18.85 
23.92 
26.28 
15.90 
20.76 
21.83 
33.33 
35.01 
34.90 


$19.54 
21.83 




25.73 


White pine 


29.20 
17.23 


Yellow pine 

Ponderosa pine- 
Cedar 


22.18 
24.53 
35.84 


Redwood 

Ovnrpss 


36.30 
36.79 


Othpr 




Average— - 


16.74 


13.94 


16.94 


20. 05 


19.08 


21.03 


22.97 



Source: Bureau of the Census. 

The number of softwood lumber mills in operation has declmed 
generally from 15,000 in 1929 to 6,000 and 12,000 in 1932 and 1936. 
The above numbers do not include small mills (3,818 in 1930 with 
annual production less than 50,000 board feet), but their annual aggre- 
gate output is only about two-tenths of 1 percent of domestic produc- 
tion. Approximately one-third of the mills produce more than 



CONCENTRATION OF ECONOMIC POWER 11 

three-fourths of the total output. ^^ The above data, moreover, 
relate to individual mills. There are numerous organizations which 
own large timber holdings and operate several mills. The industry is 
also organized nationally and regionally.'^ Among the more promi- 
nent of the regional associations are those of the Southern pine 
producers, Pacific northwest producers, Western pine producers, 
Northern pine mills, Southern cypress mills, and redwood and Cali- 
fornia pine producers. They are in general well organized for statis- 
tical, accounting, freight, tariff, and trade-promotion purposes. The 
industry was organized under the N. I. R. A. (lumber code approved 
August 9, 1933) and its code authorized control and allotment of 
production as well as the establishment of minimum prices ; the latter 
provision, however, was suspended by the N. I. R. A. Board (Decem- 
ber 22, 1934). 

The two niost important lumber-producing regions are in the South 
(Texas to Virginia) and in the Pacific Northwest (Wasliington and 
Oregon). Although the latter region contains only about 30 million 
acres of forest, it has about one-third of the total mature standing 
timber of the United States. Under proper forest practices the maxi- 
mum annual past cut (10,000,000,000 feet) could probably be sustained 
in the future. In the South heavy cutting, especially of the mature 
stock, has seriously depleted the forests. Since pine timber grows 
rapidly, restricted cutting for a relatively short period would restore 
most of the depleted stands. Conservation of softwood timber is 
related to import trade restriction, but the relationship is not entirely 
clear. Restriction of imports and high prices may induce some 
producers to be more selective and careful in their logging practices, 
whereas the opposite conditions might force rapid and wasteful 
exploitation in order for some producers at least for a short time to 
remain solvent. High prices, however, in the absence of private or 
public control are usually associated with increased production and 
depletion of resources. Probably the most practical solution of this 
problem is to establish public standards for forest utilization and then 
adjust trade policy to fit these needs as well as the needs of consumers. 

Lumber is sold on the basis of grades, i. e., according to dimensions 
and defects. The better grades occur in the outer portion of the 
log and the low grades are concentrated toward the center. Ordinarily 
the smaller logs yield the highest percentages of low grades. The 
disposal of low-grade stock is one of the outstanding problems of the 
American industry. Baltic producers of pine and spruce and Canadian 
producers supply the United Kingdom and other markets with the 
lower grades. One outlet for domestic producers of the lower grades 
is in the manufacture of boxes, crates, etc. About 70 percent, how- 
ever, of the domestic production of softwood lumber is used for 
building and construction purposes. 

4. IMPORTS OF SOFTWOOD LUMBER 

Imports of softwood lumber decreased from 1,869 million board 
feet (about 6 percent of domestic production) in 1923 to a depression 

'6 Of the total number of mills reporting to the Census of 1932, about 47 percent (2r,l mills) produced 59 
percent of the total output. 

1' Certain branches of the industry are also organized for export purposes. The Douglas Fir Export Co., 
for example (a Webb Pomerene organization) represents 61 West coast sawmills. There is also a redwood 
association. 

257771— 41— No. 10 6 



72 



CONCENTRATION OF ECONOMIC POWER 



low of 244 million board feet (2 percent of domestic production) in 
1934 (table 26). The decreased ratio of imports to domestic produc- 
tion for the years 1932-35 inclusive is partly to be accounted for by the 
combined import charge of $4. A comparison of the same ratio for 
1929 and 1931 indicates that the tarift" of $1 had no appreciable effect 
on imports. Imjjorts in 1930 (not shown in table 26) for January 1 to 
June 17 (free of duty) as compared with the rest of the year (duty of $1) 
showed little change on a quantity basis. ^^ Imports in 1932, however, 
for January 1 to June 20 (duty of $1) as compared with the rest of the 
year (import charge of $4) showed a substantial droj) on a quantity 
and value basis. ^^ Improved business conditions in the United 
States and the reduction of the import charge to $2 in the first 
Canadian agreement account for the increased ratio of imports to 
domestic production for the years 1936 and 1937. Canada in recent 
years has supplied about 90 percent of the imports. Imports in 1939 
totaled 606 million feet, an amount less than 6 percent in excess of 
imports in 1936 and 1937, most of it occurring in the last 6 months 
when the European war disrupted normal relationsliips (table 27). 

Table 26. — Sawed softwood lumber and timber: Comparison of United States 
production, imports, and exports 



Year 


Production 


Imports 


Exports 


Ratio to doiTH'Stic 
production 




Imports 


Exports 


1919 


Million 
board feet 
27, 407 
30, 904 
31,710 
28,443 
29^13 
13, 852 
8,746 
11,899 
12, 735 
16, 248 

20, 242 

21, 589 


Million 

board feet 

1, 238 

1.869 

1,736 

1,634 

1,419 

702 

353 

311 

244 

380 

570 

573 


MiUioh 

board feet 

1,112 

2,063 

2,142 

2,546 

2.625 

1.330 

899 

982 

1,055 

995 

939 

1,033 


Percent 
5 
6 
« 
6 
5 

I 

3 
2 

1 


Percent 
4 


1923 

1925 


7 


1927 


9 


1929 


9 


1931 - 


10 


1932 


10 


1933 


8 


1934 


8 


1935 


6 


1936 


5 


1937 


5 







Source: Department of Commerce statistics. 

Usually more than half of the imports consist of spruce and pino 
(quantity and value) which are produced chiefly in the eastern part 
of Canada (table 27). Spruce is the main item; imports of larch are 
negligible. The increase in imports of spruce and pine for the first 
6 months of 1939 is due largely to increases in imports of Western 
white spruce which is subject to, along with Northern white pine and 
Norwav pine, the dutv of 50 cents and exempt of the excise tax since 
July 1,^1938. 

Imports of fir and hemlock decreased drastically during the years 
1932-35 inclusive — the period of depression and high import charges. 
Douglas fir from British Columbia is the main item. Although 
imports show a substantial increase for the past 6 months of 1939 as 
compared with the same period of 1938, they are not likely to exceed 

>8 Imports in 19.30 for January 1 to June 17 nniountod to ,W4, 000. 000 feet, valued at about $13,500,000; for 
June IS to December 31 they amounted to 564.."'00.0(10 hoard feet, valued at about $12,500,000. 

'» Imports in 1932 for January 1 to June 20 wc re 252,(KK).0(H1 hoard feet, valued at about $4,750,000: for June 
21 to December 31 thev were 101.000.000 board feet, valued al abciut $1,750,000. 



CONCENTRATION OF ECONOMIC POWER 



73 



250,000,000 board feet for the year which was the tariff quota in the 
first Canadian agreement (1936-38 inclusive). 

Table 27. — Sawed softwood lumber and timber: United States imports for consump- 
tion by principal species, 1931-89 



Year 


Fir and 
hemlock 


Spruce, pine, 
and larch 


Cedar and 
other soft- 
woods 


Total imports 


1931 . 


Board feet 
292, 000, 000 

73,000,000 

25,000,000 
5, 000, 000 

78, 000, 000 
151,000,000 
142, 000, 000 
169, 000, 000 

80, 000, 000 
105, 000, 000 


Board feet 
382, 000, 000 
265, 000, 000 
280, 000. 000 
234, 000, 000 
284, 000, 000 
398, 000, 000 
392, 000, 000 
253, 000, 000 
100, 000, 000 
152,000,000 


Board feet 
28, 000, 000 
16, 000, 000 
5, 000, 000 
5, 000, 000 
18, 000, 000 
22, 000, 000 
38, 000, 000 
36, 000, 000 
19, 000, 000 
20,000,000 


Board feet 
702, 000, 000 
354, 000, 000 
310,000,000 
244, 000, 000 
380, 000, 000 
571,000,000 
572, 000, 000 
458, 000, 000 
199, 000, 000 
277, 000, 000 


$14,000,000 
7,000,000 
7,000,000 
6,000,000 
10,000,000 
13, 000, 000 
1 'i nnn mn 


1932 


1933- - .. .... 


1934 


1935 


1936 


1937 - 


1938 1 


11,000,000 
5, 000, 000 
6, 000, 000 




1939 (first 6 months) ' 





' Preliminary. 

Source: Compiled from official statistics of the U. S. Department of Commerce. 

Imports of cedar and other softwoods consist mainly of cedar. They 
have been subject to the import charge of $1.50 since 1936. Never- 
theless, imports have increased substantially in recent years as com- 
pared with 1931 when they were free of duty. The period of low 
imports, 1932-35 inclusive, is the period (except for the first part of 
1932) when the $3 import charge applied. 

Imports and domestic output of softwood lumber are consumed 
largely in the northeastern part of the United States. Transportation 
costs constitute an important share of total delivered costs. Ship- 
ments from British Columbia by water to North Atlantic ports are 
largely by irregular service and are probably lower on the average 
than the domestic conference rates. Producers of softwood lumber in 
eastern Canada have some transportation cost advantage over domes- 
tic producers in the South and West on shipments to the northeastern 
part of the United States. 



5. EXPORTS OF SOFTWOOD LUMBER, UNITED STATES 

Exports of softwood lumber from the United States averaged about 
2,500,000,000 board feet annually from 1925 to 1929 (table 26). A 
depression low of 899,000,000 feet was reached in 1932. Principal 
species exported are Douglas fir, southern pine, soft pines, western 
hemlock, cedar, and redwood. The outstanding markets have been 
Japan, China, Argentina, the United Kingdom, the Netherlands, 
and Italy. On the basis of value of exports the United Kingdom 
has been the most important market since 1933 for the softwood lumber 
exports of the United States. 

Softwood lumber exports of the United States to the United King- 
dom declined steadily between 1929 and 1932 (85,000,000 feet valued 
at $2,250,000 in 1932). They recovered slightly in 1933 and 1934, 
but the recovery was considerably less than the increase in exports 
of Canada to the United Kingdom (tables 28 and 29). The exports 
of the United States to the United Kingdom were formerly much 
larger than those of Canada, but the preferential tariffs in 1932 reversed 
the situation. In 1933 Canadian exports to the United Kingdom 



74 



CONCENT-'RATION OF ECONOMIC POWER 



were four times as large as those of the United States and a further 
increase occurred in 1934. Exports from the United States, however, 
for the first 6 months of 1939 as compared with the same period of 
1938 indicate a slight improvement in total exports, but a relatively 
greater improvement in exports to the United Kingdom. 

Table 28. — Sawed softwood lumber and timber: United States total exports and exports 
to the United Kingdom, 1938-39 



Year 


Total exports 


Exports to the United 
Kingdom 


1933 - 


Board feet 
982, 000, 000 

1, 055, 000, 000 
995, 000, 000 
939,000,000 

1, 033, 000, 000 
684, 000, 000 
354, 000, 000 
364,000,000 


$19,654,000 
27, 718, 000 

26, 209, 000 

27, 318, 000 
33, 709, 000 
22, 749, 000 
11,673,000 
11,867,000 


Board feet 
95, 000, 000 
82, 000, 000 
85, 000, 000 
87, 000, 000 

111,000,000 
67, 000. 000 
34, 000, 000 
51, 000, 000 




1934..- 

1935 


3, 296, 000 
3, 539, 000 


1936 


4, 001, 000 


1937 


4 987 000 


1938' 


3, 301, 000 




1,624,000 
2, 418, 000 


1939 (first 6 months) ' 





> Preliminary. 

Source: Compiled from oflBcial statistics of the U. S. Department of Commerce. 



6. SOFTWOOD lumber: CANADIAN EXPORTS 

Although the Canadian production of softwood lumber is much 
smaller than that of the United States, it is of particular importance 
to the American industry because a large part of the output is exported. 
The kinds of lumber manufactured in Canada are similar to those of 
the United States, though competition is largely centered about 
Douglas fir. Canadian production averaged about 4,000,000,000 
board feet annually from 1928 to 1930, and about 2,000,000,000 from 
1931 to 1935 which is equivalent to about 15 percent of the average 
annual production of the United States in both periods. A depression 
low of 1,700,000,000 feet was reached in 1932; subsequently output 
increased to 3,200,000,000 feet in 1936. 

Approximately 50 percent of the Canadian output is exported 
Douglas fir, spruce, hemlock, cedar, and pine are the principal export 
items. Although exports declined sharply following 1929, the}^ have 
recovered since 1932 to almost the predepression level. Prior to 1932 
over one-half of the exports were to the United States, but in more 
recent years the proportion has been nearer one-fourth. The United 
Kingdom now receives about half the Canadian exports (table 29). 
Preferential tariffs in British Empire countries have been of substan- 
tial benefit to Canadian exporters, especially to those exporting 
Douglas fir, and are largely responsible for the shifts in the relative 
importance of the several Canadian export markets. Exports from 
Canada for the first 6 months of 1939 as compared with the same 
period of 1938 indicate a substantial improvement in total exports 
which was confined primarily to, and was shared about equally in, 
the markets of the United Kingdom and the United States. 



CONCENTRATION OF ECONOMIC POWER 



75 



Table 29. — Sawed softwood lumber and timber: Canadian total exports and exports 
to the United Kingdom and the United States, 1933-39 

[Values in Canadian dollars] 



Year 


Total exports 


Exports to the United 
Kingdom 


Exports to the United 

States 


1933 

1934 


Board feet 
1, 067, 000, 000 
1, 402, 000, 000 
1, 325, 000, 000 
1,745,000,000 
1,817,000,000 
1,658,000,000 
768, 000, 000 
945. 000, 000 


$16, 665, 000 
24, 780, 000 
24,083,000 
34, 706, 000 
41, 772, 000 
33, 896. 000 
15, 478, 000 
19, 273, 000 


Board feet 
438, 000, 000 
788, 000. 000 
650, 000, 000 
888, 000, 000 
965. 000, 000 
921, 000, 000 
425, 000, 000 
499, 000, 000 


$6,708,000 
13, 798, 000 
11,425,000 
17, 259, 000 
20, 859, 000 
17, 700, 000 
7, 819, 000 
9, 690, 000 


Board feet 
273, 000, 000 
219, 000, 000 
331, 000, 000 
489, 000, 000 
484, 000, 000 
420, 000, 000 
176, 000, 000 
258,000,000 


$5, 650, 000 
5 337 000 


1935 




1936 . 


11,355,000 
13, 253, 000 


1937 


1938_ 


1938 (first 6 months) 

1939 (first 6 months) 


4, 399, 000 
6, 236, 000 



Source: Compiled from olSeial trade statistics of Canada. 



7. TRIANGULAR SOFTWOOD LUMBER TRADE BALANCE, 1939 

Total exports of softwood lumber from the United States increased 
in quantity 10,000,000 board feet and in value $194,000 for the first 6 
months of 1939 as compared with the same period of 1938. A similar 
comparison of exports to the United Kingdom and to other countries 
indicates for the former an increase of 17,000,000 board feet and of 
$794,000; for the latter a decrease of 7,000,000 board feet and of 
$600,000. Apparently the trade agreement with the United Kingdom 
improved the export trade of the United States in softwood lumber 
to the United Kingdom, but the improvement was partially offset 
by decreased exports to other foreign markets. War conditions may 
alter the situation.^*^ 

Canadian total exports, on the other hand, increased during the 
sanie period 177,000,000 board feet and $3,795,000. A similar com- 
parison of Canadian exports to the United Kingdom, to the United 
States, and to other countries shows that exports to the United 
Kingdom increased 74,000,000 board feet and $1,871,000; exports to 
the United States increased 82,000,000 board feet and $1,837,000; 
and exports to other countries increased 21,000,000 board feet and 
$87,000. Although the preferential duty of the United Kingdom on 
softwood lumber in favor of Canada and against the United States 
was partially reduced (effective January 1, 1939), Canada apparently 
is able not only to hold but also to increase her exports to the United 
Kingdom substantially more than the United States. At the same 
time Canada increased substantially her exports to the United States 
as well as to other countries. For the very brief period analyzed 
here the United States under the recent trade agreements with the 
United Kingdom and Canada did not experience an increase in soft- 
wood lumber imports from Canada which was approximately offset 
by increased American exports to the United Kingdom and to other 

*> For the year 19.39 as a whole compared with 1938, all exports increased 95 percent while that of Douglas 
fir and spruce combined increased 186 percent and exports of other softwoods increased 23 percent. Spruce 
is, of course, used in airplanes. 



76 CONCENTRATION OF ECONOMIC POWER 

countries, but an increase in imports from Canada which was accom- 
panied by a decrease in American exports to other countries in com- 
petition with Canadian exports, and by only a shght increase in 
American exports to the United Kingdom (17,000,000 feet and 
$794,000) as compared with the increase in Canadian exports to the 
same market (74,000,000 feet and $1,871,000). A similar comparison 
of domestic shipments in the American market indicates an increase 
of 1,500,000,000 board feet.^^ 

8. SUMMARY STATEMENTS 

(a) The foregoing analysis is an attempt to evaluate the immediate 
and direct effects of the recent changes in the treatment of softwood 
lumber imports and exports. Related, but remote and indirect, 
effects are not considered because they cannot be accurately allocated, 
and consequently their consideration involves an evaluation of the 
trade-agreements program as a whole. The latter evaluation is 
extremely difficidt to make because other factors, such as general 
business fluctuations and war conditions, affect trade as well as 
tariff changes. The marked decline, for example, in softwood lumber 
imports in 1932 and 1933 occurred when import charges were increased, 
but economic conditions were already on the decline. In part the 
failure of American softwood lumber exports to increase in 1939 to 
countries other than the United Kingdom was due to war conditions 
in markets (e. g., China) which have been supplied mainly by the 
United States. 

(b) From the tariff history of the commodity under review emerges 
an important feature of tariff development, namely, the tendency for 
moderate import charges to become highly restrictive which in turn 
is likely to provoke retaliation from other countries. A bargaining 
procedure of reciprocal adjustment is the practical way in which to 
meet this problem. 

(c) With regard to the immediate and direct effects of the recent 
changes in the treatment of softwood lumber imports, they are 
definitely unfavorable for the American industry. The triangular 
softwood lumber trade balance in the first G months of 1939 moved 
substantially against the United States as compared with Canada. 
This adverse effect, however, is small relative to the increase of 
1,500,000,000 board feet in domestic shipments. An adjustment of 
transportation rates rather than tariff rates seems to be the more 
appropriate way in which to give the domestic industry some im- 
mediate relief. One apprehension, however, does not seem justified, 
namely, that the imports of Douglas fir and hemlock will exceed the 
former quota limitations. 

(d) Only rough estimates can be made on the basis of the brief 
experience under the new trade agreements with regard to future 
changes in the softwood lumber trade. The immediate reduction, 
however, of preferential duties by the United Kingdom probably are 
not extensive enough to improve appreciably American exports. The 
reduction applies primarily to that portion of the softwood lumber 
trade, the higher grades, which the American exporters were able to 

21 Domastic shipments of softwood lumber for the first 6 months of 1938 amounted to 7,891,000,000 board 
feet; for the same period of 1939 they were 9,386,000,000 board feet. Data compiled from Survey of Current 
Business, U. S. Department of Commerce. 



CONCENTRATION OF ECONOMIC POWER 77 

supply prior to 1939. If the American excise tax on lumber were 
allowed to expire in 1941 (war conditions excluded) and the pro- 
visional reduction of British preferential duties were to become 
effective, probably no substantial increase in American exports 
would take place. The factors which prompt this statement are: 
First, the proximity of the Baltic producers to the United Kingdom 
and the continuation of considerable preferential treatment for 
lower grades of lumber exported from Canada; secondly, the long- 
run trend of softwood lumber production in the United States is 
downward and past levels could be sustained only on the basis of 
large additional expense for forest maintenance; and thirdly, foreign 
trade when once lost is difficult to regain. 

{e) The elimination, on the other hand, of the American excise 
tax on lumber and the continuation of the 50-cent duty which are the 
conditions for the introduction of the British provisional duties would 
not fill the American market with a log-jam of Canadian softwood 
lumber. Imports would probably not exceed 1,000,000,000 board 
feet annually. Tliis rough estimate is based on the following factors: 
First, Canadian production is not large compared with the produc- 
tion of the United States, is not unlimited in terms of potential lumber 
resources, and is not exempt from a long-run downward trend similar 
to that of the United States; secondly, as long as Canadian producers 
retain some preferential treatment in the United Kingdom they are 
not likely to divert a substantial volume of their export trade to the 
United States where American competition would be more effective 
than in the United Kingdom; and thirdly, as Canadian exports in- 
creased to the United States they would be met and gradually stopped 
by lower prices of the more efficient of the American mills. 

(/) The market for any commodity in a system of free private enter- 
prise is not a fixed quota, but is subject to many changes. New 
substitutes may seriously alter the amounts of a given commodity 
which have been customarily sold. Equally important, if not more 
so, are the alterations in markets which are connected with periods of 
general prosperity and depression. The statistical data of the soft- 
wood lumber industry presented above reveal in a striking fashion 
the latter type of market changes. Since the building and construc- 
tion industry which fluctuates violently with changes in general busi- 
ness conditions is the main outlet for the softwood lumber industry, 
the market variations for the latter are not an unexpected fact. Do- 
mestic producers and foreign producers are not competing for a share 
of a fixed market in which more for one necesarily means less for all 
others, but for a share in a market in which more for one may mean 
more for all others. To the extent, then, that the trade-agreements 
programs now and in the future contributes to increased domestic and 
foreign trade, the American softwood lumber industry is likely to 
find itself favored by the latter situation. 



CHAPTER VII 

CONSUMERS' COST FROM IMPORT RESTRICTIONS 

SUGAR AND RAYON YARN 

1. PROBLEM OF ESTIMATING CONSUMERS' COST 

Tariffs which effectively restrict foreign selling in the domestic 
market add to consumers' cost of hving. Under such conditions 
domestic prices relative to the price of imports without restrictions 
are higher. In some instances the restriction increases consumers' 
cost, but the additional cost may constitute revenue for the Federal 
Government. The import duties then represent a type of taxation 
on sales or consumption. If a tariff were levied on coffee, for example, 
consumers would pay more for coffee and the additional payment 
would approximately equal the revenue collected by the Government. 
Since there is no domestic production of coffee, and a tariff is not likely 
to foster its cultivation, domestic consumption would continue to be 
supplied by imports. 

Restrictive tariffs and quotas, however, are frequently imposed to 
protect domestic production. The restriction increases consumers' 
cost, but the additional cost may contribute very little governmental 
revenue. If the protected domestic production supphes practically 
all of the domestic consumption, governmental revenue from the tariff 
on imports is negligible. The difference in price between the domestic 
product and the imported product, exclusive of the duty, or between 
the domestic price and the price in a nonrestricted market, measures 
approximately the additional consumers' cost which in this case is 
paid to domestic producers and represents a form of subsidy. 

Any calculation of the consumers' cost of a protective tariff must 
be a rough estimate. A brief notation of several factors involved in 
the calculation indicates its tentative character. The price differ- 
ential between domestic and imported products is probably the most 
satisfactory approximation. It is based, however, on the assumption 
that in the absence of a tariff the price of imports would remain the 
same and would be the prevailing price throughout the domestic 
market. Because of probable changes in costs of producing additional 
imports, shifts in demand, and imperfect marketing conditions, the 
price of imports would not remain exactly at the same level. The 
accuracy, moreover, of the calculation depends in part on the similarity 
of the imported product to the domestic product. Unless they are 
homogeneous or nearly so, the price differential loses its significance, 
as a measure of consumers' cost. In order to meet the requirement of 
homogeneity wholesale prices are usually the most satisfactory. Their 
use, however, excludes the probable pyramiding of the wholesale price 
differential as the product passes through one or more dealers to the 
final consumer. 

79 



80 



CONCENTRATION OF ECONOMIC POWER 



Because of these difficulties an attempt to calculate consumers' cost 
for most of the restrictive duties mentioned in this study would be 
futile and misleading. Only two cases will be examined. The protec- 
tion of domestic sugar production is the most suitable case for an 
estimate of consumers' cost. An analysis of the sugar situation, sub- 
ject to the above qualifications, is given below. It is followed by a 
brief examination of the price differential for rayon yarn. 



2. sugar: production, imports, and exports 

Prior to 1890 the duty on raw sugar was primarily a source of Federal 
revenue. Approximately 85 percent of domestic consumption was 
supplied by dutiable imports. During the following five decades the 
percent of domestic consumption supplied by dutiable imports de- 
chned substantially and the duty, supplemented later by quotas, 
became highly protective. In 1929, for example, about 52 percent of 
domestic consumption was supplied by dutiable imports which were 
almost entirely from Cuba.^ The trend was more pronounced in 1933. 
In that year dutiable imports supplied only 24.5 percent of domestic 
consumption.^ 

The quota system under the Jones-Costigan Act (continued under 
the Sugar Act of 1937) was established in 1934. Under this system 
the domestic areas, continental and offshore, retained the gains made 
during the period 1929-33; the share of the Phihppines declined; and 
that of Cuba increased. In 1938 dutiable imports accounted for 
about 29 percent of domestic consumption.^ This percentage re- 
mained approximately the same in 1939. 

Exports of sugar from the United States are negligible. They 
consist almost entirely of imported sugar refined in the United States 
and exported with benefit of drawback, or of sugar imported and 
refined in bond. Domestically produced sugar is not exported because 
domestic prices, influenced first by the tariff and later by the quota 
system, have regularly been higher than world sugar prices. United 
States production, imports, and exports, for recent years are given in 
table 30 which has been compiled by the United States Tariff Com- 
mission, 

Table 30. — Sugar: United States prodvrjion, imports, and exports, in specified 
years, 1929-39 

[Quantity in 1,000 short tons] ' 





1929 


1931 


1933 


1937 


1938 


1939 


Production in continental United States: 


1,018 
218 


1,156 
184 


1,642 
250 


1,288 
462 


1,685 
583 


1,607 




511 






Total 


1,236 


1,340 


1,892 


1,750 


2,268 


2,118 







The continental beet-sugar production is reported as chiefly refined and the cane sugar in equivalent 
" raw; the shipments from oCfshore areas and the imports are in the form as imported. 



1 In 1929 domestic continental prodtiction supplied 18 percent of domestic consumption: domestic ofTshore 
areas which are part of the f United States customs area, principally Hawaii and Puerto Rico, supplied 20 
percent; and the Philippinos (imports free of duty) supplied 10 percent. The percentages are based on 
domestic production and imports for consumption, i. e., apparent consumption. These statistics and sim- 
ilar data which will appear later are from a report of the United States TariS Commission, Sugar and the 
Reciprocal Trade Agreements, April 1940. 

2 Cuba supplied about 24 percent and other foreign countries the small remainder. Domestic continental 
production supplied 29 percent: domestic off-shore areas, 27.5 percent; and the Philippines 19 percent. 

' Cuba supplied about 26.9 percent and other foreign countries 2. 1 percent. Domestic continental produc- 
tion accounted for 32.3 percent of domestic consumption; domestic offshore areas, 25.1 percent; and the 
Philippines 13.6 percent. 



CONCENTRATION OF ECONOMIC POWER 



81 



Table 30. — Sugar: United Slates production, imports, and exports, in specified 
years, 1929-39— Coniinued 

[Quantity in 1,000 short tons] 





1929 


1931 


1933 


1937 


1938 


1939 


Shipments from offshore areas to continental United 
States: 


507 
3 


968 

758 

2 


1,018 

762 

5 


928 

910 

8 


892 






918 


Virgin Islands 


6 






Total 


1,393 


1,727 


1,784 


1,845 


1,751 


1,858 


Total supply for continental United States of 
domestic origin. 


2,629 


3,067 


3,676 


5,295 


4,019 


3,976 


Imports into United States customs area 2 from: 


711 

3,650 

16 


818 

2,409 

31 


1,230 

1,552 

48 


965 

2,089 

143 


952 
1,879 

144 


951 




1,872 


All other countries (full duty) 


79 






Total imports 


4,377 


3,257 


2,830 


3,197 


2,974 


2,902 


Exports from United States customs area ' 


103 


53 


50 


^ 70 


62 


125 



2 The customs area includes Hawaii and Puerto Rico but their trade in sugar, except with continental 
United States, is insignificant. 

Sources: Continental production, U. S. Department of Agriculture; Oflshore shipments, official statis- 
tics of the U. S. Department of Commerce; Imports and exports. Foreign Commerce and Navigation of 
the United States. 



3. sugar: recent duties and quotas 

In recent years until the imposition of quotas, the exclusive prefer- 
ential duty on imports of sugar from Cuba accounted largely for the 
spread between domestic prices and prices of sugar in the world 
market. Cuba exported sugar to both the New York and London 
markets. Since imports of sugar from foreign countries, other than 
Cuba, were assessed a higher duty, Cuba supplied practically all the 
dutiable imports of sugar. The price of sugar in New York exceeded 
the price in London by approximately the amount of the Cuban pref- 
erential duty. Any tendency for the difference in prices to approach 
the amount of the full-duty rate, which would have permitted increased 
dutiable imports from other foreign countries, was checked by in- 
creased imports from Cuba. 

Tariff rates on sugar since 1913 are given in table 31. The reduc- 
tion of duties by Presidential proclamation, effective June 8, 1934, 
was accompanied by the establishment of quotas (Jones-Costigan 
Sugar Act) which limited imports of sugar and sales of domestic sugar 
(continental and offshore) in the United States. Processing taxes and 
import compensating taxes were also imposed on the basis of one-half 
cent per pound for 96° sugar. These taxes were discontinued follow- 
ing the decision of the Supreme Court on January 6, 1936, which 
invalidated the processing-tax provisions of the Agricultural Adjust- 
ment Act. The quota system was extended for the calendar year 
1937 by joint resolution of Congress (June 19, 1936) and until Decem- 
ber 31, 1940, by the Sugar Act of 1937. The Sugar Act, effective 
September 1, 1937, imposed an excise tax on manufactured sugar pro- 
duced in the United States and an import compensating tax on man- 
ufactured sugar imported into the United States. The rate of tax is 
the same as the previous one, namely, one-half cent per pound. The 
taxes apply equally to all sugars regardless of their source. 



82 CONCENTRATION OF ECONOMIC POWER 

Table 31. — Sugar: United States tariff rates since 1913 
[Cents per pound] 







Rates of duty on sugar 
testing 96° by the po- 
lar! scope 




Rate on 

imports 

from Cuba 


General 
tariff 
rate 


Actofl913 


1.0048 

1.6 

1.7648 

2.0 

1.5 

.9 
1.5 

.9 


1.256 


Act of 1921 


2.0 


Acton922 


2.206 


Actofl930 


2.5 


Presidential proclamation (effective June 8, 1934) .. 


1.875 




1.875 




1.875 


Supplementary agreement with Cuba (effective Dec. 27 


1939) 


1.875 







Although the trade agreement with Cuba (1934) reduced its prefer- 
ential rate to 0.9 cent per pound, the difference between prices of 
sugar in New York and London was largely the result of quotas 
which limited the supply in the domestic market. The maintenance 
of the 0.9-ccnt preferential duty was made contingent upon the con- 
tinuance of a quota system. The quotas were suspended during the 
period September 11, 1939, to January 1, 1940, because of the high 
prices wliich resulted from the excessive domestic purchases following 
the declaration of war in Europe. During approximately the same 
period (September 12 to December 27, 1939) the preagreement pref- 
erential rate of 1,5 cents a pound was imposed on sugar imported 
from Cuba. By the terms of the supplementary trade agreement 
with Cuba the rate of duty on Cuban sugar was again to become 0.9 
cent a pound when and if the President should give public notice of 
the rostoration of the quotas. The notice was given on December 27, 
1939, and the 0.9-cent preferential duty became effective. 

4. consumers' cost of restrictions on sugar imports 

The estimated cost to consumers in recent years because of the 
protection of domestic sugar production is given in table 32. For the 
8 years examined total consumers' cost amounted to $2,189,062,203. 
The average annual cost was $273,632,775. The average annual cost 
for the three pre-quota years was $272,472,349; for the 5 years of the 
quota system, $274,329,031. Since net customs revenues were larger 
during the pre-quota period, the average annual cost to consumers as 
taxpayers was less in that period, namely, $178,921,349 as compared 
with $215,983,150 in the five quota years. 

Although consumers paid the larger bill, a minor part constituted 
governmental revenues. The major portion of the bill was an indirect 
subsidy in the form of higher prices which was paid to domestic pro- 
ducers of sugar. For the years studied, the highest costs to con- 
sumers and to consumers as taxpayers were incurred in 1936, namely, 
$345,406,330 and $309,185,330 respectively. The lowest cost to con- 
sumers was in 1939, but the lowest cost to consumers as taxpayers 
was in 1929, 






CONCENTRATION OF ECONOMIC POWER 



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g4 CONCENTRATION OF ECONOMIC POWER 

Prior to 1935 the cost to consumers from duty restriction of sugar 
imports was measured largely by the amount of the Cuban preferential 
duty. Under the quota system, which a})solutely limits the supply 
of sugar for sale in the domestic market, the price differential between 
the New York and London markets is not determined by the amount 
of the preferential duty. The difference, for example, between the 
London and New York sugar prices for the period 1929-35 was 
very close to the amount of the preferential duty. The fact that 
this differential was not exactly equal to the duty may be attributed 
largely to imperfections in the sugar markets. 

Slight deviations from the duty-spread in prices between New York 
and London markets were not corrected immediately, and hence the 
yearly averages of the New York prices, excluding the preferential 
duty, were not identical with the London averages. In 1929 and 
1931 the difference between these two prices, however, was less than 
one-tenth of a cent per pound. On the other hand, in 1935 (the first 
full year under the quota system) the difference between the London 
and New York C and F prices no longer corresponded to the amount 
of the preferential duty. In the first thi'ee full years under quotas, 
the New York C and F prices were over 100 percent higher than the 
London prices. This price differential, however, has been less in the 
last few years. Since 1936 the New York sugar price has been falling 
and the London price has been rising, which may indicate a trend 
toward the former approximations which existed before the quotas 
were instituted. 

The above trend in prices indicates that the cost of sugar import 
restrictions to the consumers has been about the same under the 
quota system as under the nonquota arrangement. A comparison, 
for example, of the years 1933 and 1935 shows that the New York 
price was 3.23 cents per pound in both years even though the prefer- 
ential duty on Cuban imports was 2 cents per pound in 1933 without 
quota restrictions and was 0.9 cent per pound in 1935 ^vith quota re- 
strictions. Because of this coincidence, the reduction in the prefer- 
ential duty represented a gain in that year to Cuban producers. 
Since the above price relationship has not prevailed for recent years, 
the reduction in the preferential duty under the quota system cannot 
be taken as an exact measure of the net gain to Cuban producers.'* 

In the calculation of consumers' cost resulting from the restrictions 
on imports of sugar, the domestic manufacturing tax and the import 
excise tax on refined sugar of 0.5 cent per pound was not included. 
The taxes were levied uniformly upon both domestic and imported 
sugar. They may constitute a part of the cost of sugar to the con- 

< In judging the Cuban gain from the quota arrangement with lower preferential rates, at least 3 factors 
must be taken into consideration, namely, the London or world price for sugar, the price paid for Cuban 
sugar in the United States, and the amount of sugar which Cuba was able to sell in the United States. It is 
obvious that the price advantage to the Cubans under the quota system would be offset greatly if the 
amount of sugar sold were relatively small. Since the first quota year (1935) the United States has been 
taking a gradually decreasing percentage of Cuba's total output. During the last 3 years of the nonquota 
period the United States received about 68 percent of Cuban prdductinn, while during the last 3 years of 
the study (1937-39) the United States received 57 percent df Itic Cubiin supply. Since C'uban sales are 
restricted on the world market as well as the United States inarkfl , f he Cubans face the problem of restricting 
production if they are to continue to profit by any price ditlenntial that exists between the world price and 
the New York price. . ,. ^ ^ , . 

In table 33 the results of a quantitative study of Cuban gains from the quota system are indicated . Takmg 
1933 (last nonquota year) as a base year, the advantage which the Cubans had selling in the New \ ork 
market was $0.0026 per pound. They shipped 3,103, 718,(X)0 pounds of sugar into the United States and 



CONCENTRATION OF ECONOMIC POWER 



85 



sumer ^ but they are not a cost resulting from import restrictions which 
operate in favor of domestic production. 

From the dollar cost to consumers of restrictions on imports of sugar 
was deducted the net customs revenues in order to obtain the net cost 
to consumers viewed as taxpayers. The net cost calculation is not an 
attempt to measure the cost of restrictions on sugar imports to the 
economy as a whole, such as the loss of export markets because of small 
sugar imiports, inefficient allocation of domestic factors of production, 
restricted consumption of sugar, and the resultant inequalities of 
taxation from an ability-to-pay point of view of a commodity tax on 
sugar. Although an estimated increase in population of about 
10,000,000 occurred between 1930 and 1940, the amount of sugar 
consumed in the United States was less in 1939 than it was in 1929. 
Since the years of greatest sugar consumption in the United States 
were 1929, 1937, and 1939, while the smallest amounts were consumed 
in 1932 and 1933, there seems to be some correlation between incomes 
and sugar consumption. The decline in incomes relative to the prices 
of sugar, as well as changes in dietary habits of the population, seem 
to account for the trend in the consumption of sugar. 

Although the cost to the consumer of the import restrictions on 
sugar is substantial, the cost is a conservative estimate. The 
pyramiding of the price differential, or consumers' cost, in the whole- 
sale price of sugar as it moves through trade channels to the consumer, 
is difficult to estimate and is not included in the calculations. On the 
other hand, if the import restriction were removed, the world price 
of sugar might be slightly higher. Because of the restrictions on 

netted a gain of $8,069,666 over the amount they would have received had they sold that quantity in the 
world market instead. 

Table Z3.— Cuban gains under sugar quotas 



Year 


Cuban sales to 

United States 

(pounds) 


Excess of 
New York 
price over 
world price 


Cuban 
gains from 
sales in 
United 
States 


Gains 

above 1933 

gains 


Gains 

above 1933 

on basis 

of 1933 

sales 


Duty differ- 
ential between 
1933 and subse- 
quent years on 

basis of sales 
in 1933 


1933 


3, 103, 718, 000 
3,990,888,000 
3, 850, 300, 000 
4,178,586,000 
3,757,876,000 
3, 744, 620, 000 


$0. 0026 
.0133 
.0171 
.0128 
.009 
.0041 


$8,069,666 
53,078,810 
65, 840, 130 
53, 485, 900 
33, 840, 884 
15,352,942 








1935 - 


$45, 009, 144 
57, 770, 464 
45, 416, 234 
25, 771, 218 
7, 283, 276 


$33, 209, 782 
45,003,911 
31, 657, 923 
19, 863, 795 
4, 655, 557 




1936 


34,140,898 
34, 140, 898 


1937 

1938 




34, 140, 898 





Source: Statistics on Sugar, U. S. Tariff Commission, 1940. 

In 1935 (first full quota year) the advantage which the Cubans had selling in the New York market was 
$0.0133 per pound or $53,078,810. This was a gain of $45,009,144 over 1933 in this respect. However, since 
they also sold more sugar in the United States in 1935 than in 1933, the comparison between the gain to the 
Cubans from the quota restriction can be seen more clearly if it is assumed that the same amount of sugar 
was sold by Cuba in 1935 as in 1933. In such case, the gain would have been $33,209,782. It is mere coincidence 
that this is so close to the amount of the duty differential on that number of pounds of sugar. There is no 
necessary relationship between the price of sugar in the United States and the amount of the duty on that 
sugar, since the price, at least so far as the supply side is concerned, is determined by the amount of sugar 
allowed on the market under the quota restrictions. 

As can be seen from table 33, the Cubans have gained under the quota system every year since it has been 
instituted as compared with their gains before the quota system. These relative gains have fluctuated from 
a high of over $57,000,000 in 1936 to a low of $7,000,000 in 1939. This brief study of the Cuban portion of the 
quota picture shows rather clearly that (1) the Cubans have gained materially from the quota system, (2) 
the amount of their annual gain is showing a decreasing trend, (3) there is no direct relationship between 
the amount of that annual gain and the preferential duty rate. 

» The incidence of the tax is uncertain. It probably is borne in part by the producers of raw sugar prod- 
ucts, domestic and Cuban; in part by the refiners, wholesalers, and retailers; and in part by the consumers. 



86 CONCENTRATION OF ECONOMIC POWER 

United States imports of sugar, a larger supply is available for the 
London market which may make the London price slightly lower 
than would otherwise be the case. A considerable portion, moreover, 
of the supply now produced in protected United States areas would 
not be available without restrictions on imports. How much of this 
reduction in supply from protected areas could be furnished by low- 
cost production in nonprotected areas is not exactly known. Many 
of the cane-produch)g regions, such as Cuba, probably could meet the 
demand without incurring any substantial increases in costs. 

5. RAYON yarn: CONSUMERS' COST OF RESTRICTIONS ON IMPORTS 

In recent years the duties on rayon yarn have been very liigh (in 
many cases the ad valorem equivalent has been over 100 percent), 
and imports in comparison with domestic production have been very 
small (less than one-half of 1 percent). Since 1929 production has 
increased by more than 100 percent while imports have declined to 
only a small fraction of their former level. 

The Tariff Act of 1913 established a rate of 35 percent on all imports 
into the United States of rayon yarn. New classifications were set up 
and rates were increased in the Tariff Act of 1922 and in the Tariff 
Act of 1930. In the latter act rayon yarn, for purposes of duty 
assessment, is segregated into two major classifications — yarn having 
not more than 20 turns twist per inch and yarn having more than 20 
turns twist per inch. Each major classification has two subclassi- 
fications — single yarn and plied yarn^ — and each of these may be 
subdivided into yarn weighing 150 deniers or more and yarn weighing 
less than 150 deniers.^ 

Paragraph 1301 of the Tariff Act of 1930 provides for ad valorem 
rates of duty on rayon yarn, the rate increasing as the yarn advances 
through the various stages of manufacture. In no case, however, 
may the duty be less than 45 cents per pound if the yarn has no more 
than 20 turns twist per inch, and 90 cents per pound if the yarn has 
more than 20 turns twist per inch. If the ad valorem rate (which 
ranges from 45 to 55 percent) when applied to the invoice value of 
imported rayon does not equal 45 cents per pound,^ then the specific 
rate is applied. Practically all of the imports, except for a few 
specialties, are dutiable at the specific rate. Moreover, the lower the 
invoice value (on a per pound basis), the higher will be the ad valorem 
equivalent of the specific duty. For example, 4,000 pounds of yarn 
having no more than 20 turns twist per inch and weighing 120 deniers 
were imported in 1938; the total value was $1,042, and the unit value 
was 26 cents per pound. The duty on this yarn was 45 cents per 
pound, or the equivalent of 173 percent. This is an exceptionally 
high ad valorem equivalent but the average ad valorem equivalent on 
total imports of rayon yarn in 1938 was 128 percent.^ 

The production of ravon in the United States has increased from 
121,000,000 pounds in 1929 to 258,000,000 pounds in 1938. During 

' Single yarn is the only type of yarn produced by the rayon industry. Plied and thrown yarns are 
produced hy rayon mills, converters, and throwsters who operate with single yarn as their raw materials. 
The mills produce both plied and thrown yarns for their own u.se or for sale; the converters and throwsters 
produce these yarns either for sale or on contract. 

' In the rayon industry one denier equals flvo centigrams per length of 450 meters; consequently, the 
greater the number of deniers, the heavier and cdarscr th<> yarn. 

s Or 90 cents per pound if the yarn has more llian '2(1 turns twist per inch. 

' This phenomenon really began in 1930 when imports from Japan became important. In the period from 
1331-36 the ad valorem equivalents never reached over 68 percent. 



CONCENTRATION OF ECONOMIC POWER gy 

this same period imports declined sharply; they amounted to 
15,000,000 pounds in 1929 and to 262,000 pounds in 1938. During the 
decade 1929-38, domestic production more than doubled, while 
imports in 1938 were less than 2 percent of the quantity imported in 
1929. Since 1932 imports have never amounted to as much as 
one-half of 1 percent of domestic production; in 1938 they amounted 
to one-tenth of 1 percent. 

It is reported that, except for a few specialties, imports are not used 
for the production of materials destined for consumption in the 
United States. This may be attributed principally to the relatively 
high duties. Imports are used almost entirely in the manufacture of 
goods produced for export to foreign countries. A draw-back of 
duties paid on the imported yarn may be claimed when such goods are 
sliipped abroad. In such instances, the amount of duty paid on the 
imported yarn is a matter of little consequence to the importer. 

A comparison of average unit values of imports of yarn with the 
annual average wholesale prices of similar yarn in the United States 
gives further evidence of the inability of unported yarns to compete 
in the United States market. For example, the average wholesale 
price for domestic viscose yarn weighing 100 deniers in 1938 was 
69 cents per pound. The average unit value of similar imported yarn 
was 37 cents. If the duty of 45 cents per pound is added to the 
average unit value, the duty-paid value becomes 82 cents per pound 
exclusive of insurance, freight, and handling charges, and of the 
importers' mark-up. 

Since the duty on rayon yarn is prohibitive and imports are negli- 
gible, the differential between domestic prices and prices of imports 
is not the amount of duty. The differential is estimated by comparing 
domestic prices and unit values of landed imports excluding the duty. 
Assumnig that the same import values would have prevailed in the 
absence of any duty and with a large volume of imports, the con- 
sumers' cost of tariff protection for the domestic industry is derived 
from multiplying the quantity of domestic production by the price 
differential. Smce imports of rayon yarn are negligible and are used 
mainly in articles for export with benefit of drawback for the duty, 
domestic production approximates domestic consumption and no 
revenue is deducted from the consumers' cost (table 34). 

The calculation of consumers' cost of most products involves almost 
insuperable difficulties. Some of these are illustrated by rayon yarn. 
Thus, for example, m the upper half of the table for the group "150 
deniers or more" production data mclude yarn of 150,200, 300, and 
450 deniers and coarser. The coarse yarns all have a considerably 
lower wholesale price than the 150 deniers, which is used in column 2 
for comparison with the landed value of imports. While it is inac- 
curate to multiply the production figures inclusive of these low-priced 
coarse yarns by a differential calculated on the price of the 150 deniers 
alone, unfortunately the import statistics do not separate 150 deniers, 
but include them in the class "150 deniers or more." In some years, 
for example, 1937 and 1938, the imports of coarser sizes in excess of 
150 deniers are said in the trade to be virtually nil. 

Furthermore, the production figures as given in table 34 include 
acetate yarns. Yet on the basis of certain invoice analyses the 
imports of acetate yarn seem to be small, if existent. Consequently, 

257771— 41— No. 10 7 



gg CONCENTRATION OF ECONOMIC POWER 

only viscose price quotations were employed in arriving at the price 
difl'orential between domestic and imported yarn. 

Finally the comparison made of the average unit values of imports 
and the wholesale price of domestic rayon fails to take into consider- 
ation certain variables, particularly quality. The Japanese rayon, 
which constituted 43 percent of imports in 193G, 23 percent in 1937, 
and 39 percent in 1938, is inferior in quality to the domestic. It is 
made from a bleached sulphite wood pulp of paper grade whereas 
the pulp used by the domestic rayon industry is said to be a special 
rayon grade having an alpha content averaging over 91 percent. 
High alpha ratios make for a whiter and stronger yarn. So far as is 
publicly known, the domestic industry uses no paper grades of wood 
pulp whatsoever. 

Remembering these reservations, one may venture the guess that 
in 1937 and 1938 tariff protection of rayon yarn (principal weights 
only) may have imposed an additional cost on the consumer of 
rouglily $110,000,000 to $140,000,000. The estimated cost applies 
to 90 percent of the total domestic production in the 2 years. No 
estimates were made for yarn of 75 denier and finer and of 125 denier 
which account for the remainmg 10 percent of domestic production 
in the 2-year period. Approximately one-fourth of the total produc- 
tion is by the acetate process. Acetate yarn is slightly higher in 
price than viscose yarn. 

Table 34. — Consumers' cost of duty restrictions on the imports of rayon yarn 
150 DENIERS OR MORE 



Year 


Domestic 
production 
(pounds) 


Domestic 

price 
average, 
wholesale 


Average 

unit 
value of 
imports 


Import 

value 

landed, 

ex duty ' 


Price 
differ- 
ential 


Consumers, 
cost 


1937_ 

1938 - 


2 224,960,000 
5 180, 337, 500 


3 $0. 62 
3.52 


<$0.31 
.32 


$0.34 
.35 


$0.28 
.17 


$62,988,800 









100 DENIERS 










1937 


» 58, 599, 718 « $0. 81 
'56,677,500 «.69 


$0.38 
.37 


$0.42 
.40 


$0.39 
.29 


$22 853 890 


1938 


22,671,000 







' Import value landed, ex duty, is calculated by adding 10 percent to the unit invoice values as an allow- 
ance of freight, insurance, and importers' mark-up. 

' Census of Manufactures, 1937. The data include viscose cuprammonium and acetate yarn. Total 
rayon yarn production in 1937 amounted to 321,681,000 pounds. 

' Prices are for viscose yarn of 150 deniers of 13rst grade. 

* Unit values are for all sizes 150 deniers or more, and for all grades. Yarn of 150 deniers is not separately 
reported in import statistics. 

« Textile Economics Bureau, Inc. The data arc estimates and include viscose cuprammonium and acetate 
yarn. Total rayon yarn production in 1938 amounted to 257,626,000 pounds. 

• Prices are for viscose yarn. 

Because of the lack of satisfactory data, consumers' cost for the 
protection of rayon production cannot be estimated for earlier years. 
There is no reason, however, to believe that the costs were less in 
those years. Since the tariff rates are high enough to be prohibitive, 
the costs may have been greater in earlier years. This possibility 
is clearly mdicated by the large differential between domestic prices 
for rayon and the landed import prices excluding duty, and the degree 
of industrial concentration in the domestic rayon industry. Con- 
sumers' costs were probably not only large, but also producers' profits 



CONCENTRATION OF ECONOMIC POWER §9 

were quite generous. From the study of the price-duty relationship, 
there is no doubt that the duty on rayon yarn could be reduced sub- 
stantially before the domestic producers would need to lower price 
in order to offset competitive imports. If consumers' cost of import 
restrictions on rayon yarn is to be reduced significantly, the duty 
will have to be greatly reduced, or eliminated entirely. 

6. SUMMARY 

In view of the many intangible and immeasurable factors in market 
situations, it is exceedingly difficult to translate into dollar values 
the cost of import restrictions to consumers. Because of these 
obstacles to exact calculations, only two products were examined for 
consumer cost estunates. Even though these products, namely sugar 
and rayon, were relatively quite suitable for such calculations, it was 
found to be impossible to make highly exact estimates. 

The estimates of the costs to the consumers of the protection of the 
domestic sugar and rayon industries do indicate that substantial 
burdens were levied on the consumers thereby. In both instances 
the unit price of the product to United States consumers is consider- 
ably higher than the price of the product as offered at the ports of 
entry. In addition, since both of these domestic industries show a 
high degree of industrial concentration, a substantial reduction of 
import restrictions would go far in lessening the burden on consumers 
and at the same time would promote competition in the domestic 
market. The estimates in the analysis of these two products are 
sufficiently exact to disclose the dual role of import restrictions, 
namely, prices are higher to consumers, and competition is less. 



APPENDIX I 

TABLES OFglNDUSTRIAL CONCENTRATION, 1,807 PRODUCTS 
OF THE CENSUS OF 1937, BY CENSUS GROUP (EXCEPT 
CLASSES V AND XV), DUTY, STATUS, TARIFF EFFECTS, ETC. 



Table 1. — Sample of industrial concentration, 1,807 products of the census of 19S7, 
by census groups 







Census products 
I. Food 




Census products 
II. Textiles 




Number 


Domestic value 


Percent 


Number 


Domestic value 


Percent 


75 or more ' . .. -- 


30 
48 
55 
3 


$492,111,328 

2,098,889,242 

2, 522, 321, 695 

6, 159, 571 


9.6 

41.0 

49.3 

.1 


92 
91 
91 
16 


$347, 830, 423 

634, 984, 731 

2, 996, 943, 123 

70, 274, 073 


8.5 


50 to 74 2 


16.6 


49 or less 3 


74.0 




1.9 






Total. 


136 


5,119,481,836 


100.0 


290 


4, 050, 032, 350 


100.0 








III. Lumber 


IV. Paper 




39 
20 
35 
5 


$96, 072, 946 
66, 165, 243 

472, 337, 634 
28,502,237 


14.5 
10.0 
71.3 
4.2 


17 
23 
23 


$85,744,347 
271,849,515 
477, 774, 642 


10.3 


50 to 74 ' 


32.5 


49 or less ' 


57.2 














Total 


99 


663,078,060 


100.0 


63 


836, 368, 604 


100.0 








VI. Chemicals 


VII. Petroleum 


75 or more 


109 
56 
37 
10 


$668, 856, 431 
442, 210, 799 
698, 288, 095 
131,825,118 


34.4 
22.8 
36.1 
6.7 


3 

7 
7 

1 


$42, 683, 976 

211,601,893 

2, 226, 965, 519 

1, 015, 991 


1.7 


50 to 74- 


8.6 


49 or less 


89.7 


Data incomplete 









Total 


212 


1,941,180,443 


100.0 


18 


2,482,267,379 


100.0 








VIII. Rubber 


IX. Leather 


75 or more.. - -. 


23 
14 
2 


$555, 271, 968 
121, 569, 416 
52, 204, 659 


76.2 
16.7 
7.1 


54 
33 
24 
1 


$119, 613, 701 

217, 047, 039 

804, 727, 264 

2, 233, 587 


10.4 


50 to 74 


19.0 




70.4 




.2 












Total .- 


39 


729, 046, 043 


100.0 


112 


1, 143, 621, 591 


100.0 








X. Stone, clay- 


XI. Iron-steel 


76 or more 


Si 
42 


$361, 531, 324 
228,877,191 
485,426,084 


33.5 
21.3 
45.2 


80 
67 
40 


$1, 147, 990, 963 

1, 167, 493, 053 

702, 088, 260 


38.0 


60 to 74. 


38.7 




23.3 




















Total... . 


182 


1, 075, 834, 599 


100.0 


177 


3.017,672,276 


100.0 







4 companies or less supplied 75 percent or more of the total value of each product. 
4 companies supplied from 50 to 74 percent of the total value of each product. 
' 4 companies supplied 49 percent or less of the total value of each product. 



91 



92 



CONCENTRATION OF ECONOMIC POWER 



Table 1. — Sample of industrial concentration, 1,807 products of the census of 1937, 
by census groups — Continued 



Index of concentration 


Census products 
XII. Nonferrous metals 


Census products 
XUI. Machinery 




Number 


Domestic value 


Percent 


Number 


Domestic value 


Percent 


75 or more .. . . .. 


25 
16 
14 


$331, 083, 281 
327, 949, 570 
173, 800, 412 


39.8 
39.4 
20.8 


248 
97 
19 

1 


$1, 804, 123, 037 

972, 061, 418 

389, 435, 472 

3, 324, 522 


57.0 


60 to 74 


30 6 


49 or less 


12.3 




.1 












Total 


65 


832, 833, 263 


100.0 


365 


3, 168, 944, 449 


100.0 








XIV. Transportation 


XVI. Miscellaneous 


75 or more 


2 


$2, 848, 786, 150 


100.0 


13 
13 
2 


$1, 254, 458, 864 

42,552,552 

296,111,367 

4,523,417 


78 5 


50 to 74 


2.7 


4g or less 








18.5 










.3 












Total 


2 


2,848,786,150 


100.0 


57 


1, 597, 646, 200 


100.0 







Source: Census of Manufactures, 1937. Temporary National Economic Committee Industrial Con- 
centration Study. 



Table 2. — Sample of industrial concentration, 1,807 products of the Census of 1937, 
by census groups and according to duty status and tariff effects, in 1937 









Restrictive effect of tariffs 


Duty status 




Insignificant 


Moderate 


Substantial 




Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 




I. Food 




$922, 755, 365 

2, 659, 554, 668 

1, 471, 402, 788 

57, 939, 697 

7, 829, 318 


18.03 
51.95 
28.74 
1.13 
.15 


$143, 293, 537 

1, 427, 479, 408 

128, 757, 235 


15. 53 
53. 67 
8.75 


$114, 386, 953 
1, 201, 081, 967 
1,334,269,346 


12.40 
45.16 
90.68 


$605. 074, 875 
30, 993, 293 
8, 376, 207 


72.07 


30 to 59 1 


1.17 


29 or less ' 


.57 


Free 




Data incomplete 


























Total 


5,119,481,836 


100.00 


1, 699, 630, 180 




2, 649, 738, 266 




704, 444, 375 










II. Textiles 




$1, 096, 399, 304 

2, 218, 866, 832 

664, 502, 141 


27.1 
54.8 
16.4 


$300, 864, 344 
788, 982, 128 
350,615,970 


27.44 
35.56 
52.77 


$45. 735, 001 
843, 961, 992 
180, 760, 825 


4.17 
38.03 
27.19 


$749, 799, 959 
.585.912,712 
133, 125, 346 


68.39 


30 to 59 

29 or less 


26.41 
20.04 


Free 




Data incomplete 

Total 


70, 274, 473 


1.7 


























4,050,032,350 


100.00 


1,440,462,442 




1,070,457,818 




1,468,838,017 










III. Lumber 


60 or more 


$12,712,761 
632, 775, 215 


1.9 
95.5 


$464,498 
589, 722, 212 


3.65 
93.20 


$3, 964, 580 
43, 053, 003 


31.19 
6.80 


$8, 283, 683 


65.16 


30 to 59 




























Data incomplete 


17. 590, 084 


2.6 


























Total 


663,078,060 


100.00 


590, 186, 710 




47, 017, 583 




8,283,683 









'Ad valorem rates of duty, or equivalent ad valorem rates, 1937. 



CONCENTRATION OF ECONOMIC POWER 



93 



Table 2. — Sample of industrial concentration, 1,807 products of the census of 1937, 
by census groups and according to duty status and tariff effects, in 1937 — Continued 









Restrictive effect of tariffs 


Duty status 




Insignificant 


Moderate 


Substantial 




Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per. 
cent 




IV. Paper 


60 or more 


















30 to 59 


$120, 213, 098 
680, 048, 531 
35, 106, 875 


14.39 
81.41 
4.2 


$55, 455, 531 
419, 288, 134 


46.13 
61.66 


$52,546,018 
107, 032, 806 


43.71 
15.74 


$12,211,549 
153, 727, 591 


10.16 


29 or less 


22.6 






































Total -. 


835, 368, 504 


100.00 


474, 743, 665 





159, 578, 824 




165,939,140 










VI. Chemicals 


60 or more 


$213, 210, 252 
274, 465, 703 
990, 422, 308 
282, 578, 032 
180, 504, 148 


10.98 
14.14 
51.02 
14.56 
9.3 






$5, 249, 277 
127, 993, 059 
420,985,429 


2.46 
46.63 
42.50 


$207,960,975 
139, 646, 429 


97.54 


30 to 59. 


$6, 826, 215 
569, 436, 879 


2.49 
57.50 


50.88 






Free 






Data incomplete 


























Total..-.. 


1, 941, 180, 443 


100. 00 


576, 263, 094 




554, 227, 765 




347, 607, 404 






VII. Petroleum 




















30 to 59 


$19, 213, 203 

2, 407, 568, 696 

54, 469, 489 

1,015,991 


0.78 

96.99 

2.19 

.04 


$19, 213, 203 
959, 880, 578 


100. 00 
39.87 










29 or less 






$1, 447, 688, 118 


60.13 


Free 








Data incomplete 


























Total 


2, 482, 267, 379 


100. 00 


979,093,781 








1, 447, 688, 118 
















VIII. Rubber 




$2, 662, 779 
67, 585, 175 
639, 060, 561 
19, 737, 528 


0.37 
9.27 

87.65 
2.71 






$401, 103 
32, 059, 905 
262, 311, 745 


15.06 
47.44 
41.3 


$2, 261, 676 
18, 045, 154 
40, 227, 104 


84.94 


30 to 59 


$17,483,116 
336, 521, 712 


25.87 
52.5 


26.69 




6.2 


Free 




Data incomplete 
































Total 


729, 046, 043 


100. 00 


354, 004, 828 




294, 772, 753 




60, 530, 934 










IX. Leather 


60 or more 




















$23, 464, 177 
1, 117, 923, 827 


2.05 
97.75 


$21, 404, 435 
55, 600, 578 


91.22 
4.97 


$2, 059, 742 
1, 060, 019, 434 


8.78 
94.82 






29 or less 

Free 


$2,303,815 


0.21 


Data incomplete 


2, 233, 587 


.2 


























Total 


1, 143, 621, 591 


100. 00 


77,005,013 




1, 062, 079, 176 


..... 


2,303,815 










X. Stone, clay 




$197, 785, 487 

386,919,342 

465, 208, 390 

4, 674, 676 

21, 246, 704 


18.35 
35.89 
43.16 
.43 
2.17 


$47, 612, 859 
208, 945, 519 
184, 423, 692 


24.07 
54.00 
39.64 


$141, 977, 700 
165, 907, 806 
280, 784, 698 


71.79 
42.88 
60.36 


$8,194,928 
12,066,017 


4.14 


30 to 59 


3.12 






Free 






Data incomplete 


























Total 


1,075,834,599 


100.00 


440, 982, 070 




588, 670, 204 




20,260,945 









94 



CONCENTRATION OF ECONOMIC POWER 



Table 2. — Sample of industrial concentration, 1,807 products of the census of 1937, 
by census groups and according to duty status and tariff effects, in 1937 — Continued 









Restrictive eSect of tariffs 


Duty status 




Insignificant 


Moderate 


Substantial 




Value 


Per- 
cent 


Value 


Per- 
cent 


Value 


Per- 
cent 


value ^J^l 




XI. Iron, steel 




$34. 677, 059 

945, 773, 272 

2,021,112,430 

5, 587, 144 

10, 422, 371 


1 1 

1. is! $.34.677.0.59 100.00 










30 to 59 


31.34 

66.98 

.18 

.35 


859, 204, 977 
548, 935, 191 


90.85 
27.16 


$86, 568, 295 
1,472,177,239 


9.15 
72.84 






29 or less 






Free 


































Total.. 


3, 017, 572, 276 


100.00 


1,442,817,227 




1, 558, 746, 534 


















XII. Nonferrous metals 




$407, 123 
520,909,843 
300, 533, 513 


0.05 
62.55 
36.81 










$407, 123 


100. 00 


30 to 69. 


$442,325,304 
126, 406, 033 


84.91 
41.24 


$78, 684, 639 
180, 127, 480 


16.09 
68.76 




29 or less . 






Free 






Data incomplete. . ... 


4, 982, 784 


.59 




























Total 


832, 833, 263 


100. 00 


668,731,337 




268,712,019 




407. 123 










XIII. Machinery 


60 or more 
















30to59_ 


$2,574,694,357 

299, 443, 593 

291, 481, 977 

3, 324, 522 


81.25 
9.45 


$1, 581, 775, 868 
261, 712, 129 


61.44 
87.40 


$987, 146, 138 38. 34 
37,731,464 12.60 


$5,772,361 


0.22 


29 or less 




Free 






























Total 


3, 168, 944,4491 100. 00 


1,843,487,997 




1,024,877,6021 


6,772,351 










XIV. Transportation 


60 or more 


















30 to 59 


















29 or less 


$2,848,786,160 


100. 00 


$2, 848, 786, 160 


100.00 










Free 














































Total 


2, 848, 786, 150 


100.00 


2, 848, 786, 150 


















"" 








XVI. Miscellaneous 




$1, 123, 079, 225 

325, 161, 999 

143,230,114 

1, 651, 445 

4, 523, 417 


70.30 

20.35 

8.97 

.10 

.28 


$955,214,198 
148, 279, 091 
109, 118, 832 


85.05 
45 60 






$167,866,027 


14.95 


30 to 59 


$176, 882, 908 


54.40 
23.82 




29 or less 


76.18 


34,111,282 












Data incomplete 




























Total 


1, 697, 646, 200 


100.00 


1,212,612,121 




210,994,190 




167,865,027 









Sources: Census of Manufactures, 1937; Temporary National Economic Committee Industrial Concen- 
tration Study; Foreign Commerce and Navigation of the United States. 



CONCENTRATION OF ECONOMIC POWER 



ggg 






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i^?? 



ss; 



Sg 



5S8 



o "oi^ 



95 



'"' -So § 






^8 2 



96 



CONCENTRATION OF ECONOMIC POWER 



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ogicri 



^?5J 



S'gf 



2o 



:§od 



IU50 



J" 






« a s 

m S 2 

SHOO 

is s 






CONCENTRATION OF ECONOMIC POWER 

c5SS 

-H- CM- 



97 



CO en 



?JS8§ 



SSK 



g2§ 



§SS 



ss: 












2S§ 






I I 



cJ 

CO 

Q 



o -w o 



CONCErsTTRATION OF EiCONOMIC POWER 



^ 



§88 



3^; 



cscojj 



ocno 



?^^l 



rt .-H >0 



gss 



lo o->r 



O-w o 

10005 

t~ >o ■* 



CONCENTRATION OF ECONOMIC POWER 



99 



5 i 

i i 

s 1 








i is 
; 1^ 








i 1 
; ii 


1 






§3 








si 

TOO 

r 


2 

i i 

; 2 








? : 






IS? 


■q to 

! § 






SS5 


3 8 






S5J 






O 1 

eg 


1 i- 


a 1 

3 I 

= c 
i 

5 


i 
I 

s 



APPENDIX II 

SCHEDULES OF INFORMATION FOR EACH PRODUCT 
INCLUDED IN THE SAMPLE OF 317 PRODUCTS 

GROUP A: FOODS AND RELATED PRODUCTS 

SOFT OR BROWN REFINED SUGAR 

1. Description and use. — Soft or brown sugar is a refined sugar with 
sufficient sirup content to give it a special texture, color, and flavor, 
as compared with refined, granulated sugar. It varies in polarization, 
but is usually below 96°. 

2. Industrial concentration, 1937 . — • 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937; 
Free, ad valorem 
rate, or equivalent 


12 


18 


83 


S22, 603, 146 


37 percent (Cuban 
sugar). 1 



' Because of the preferential duty on Cuban sugar, practically all dutiable sugar imported into the United 
States is from Cuba. 

3. Recent tariff history.— Act of 1913: 1.256 cents per pound (96° 
sugar); Cuban preferential rate 20 percent lower. Act of 1922: 2.206 
cents per pound (96° sugar) ; Cuban preferential rate 20 percent lower. 
Act of 1930: 2.5 cents per pound (96° sugar); Cuban preferential rate 
20 percent lower. Present duty: 1.875 cents per pound (96° sugar); 
Cuban preferential rate 20 percent lower. ^ 

4. Average ad valorem equivalent. — All Cuban sugar: 1935, 45 per- 
cent; 1936, 37 percent; 1937, 37 percent; 1938, 45 percent. 

5. Domestic production, imports, and exports. — • 



Year 


Domestic 
production 


Imports 


Exports 


193.5 


$23, 409, 448 
22, 603, 146 




(1) 


1937 


(') 







I Imports and exports are negligible. 

6. Industrial concentration and tariff policy. — Specialization, econ- 
omies of large-scale production, and establishment of brands account 
largely for the concentration. Removal of the quotas and duties on 
sugar would increase substantially the imports of both raw and 
refined sugar, would eliminate a large part of the domestic production 

1 Presidential proclamation June 8, 1934, established present general duty. Cuban trade agreement, 
September 3, 1934. increased the Cuban margin of preference by reducing the duty from 1.5 to 0.9 cents per 
pound. Between September 11 and December 27, 1939, a Presidential proclamation suspended quota 
provisions ol the Sugar Act of 1937 and restored Cuban preferential rate of 20 percent, i. e., 1.5 cents. 

101 



102 



CONCENTRATION OF ECONOMIC POWER 



of beet sugar and of the continental production of cane sugar, and 
would appreciably lower the price, probably by an amount greater 
than the present duty on Cuban sugar. 

BEET SUGAR (GRANULATED) 

1. Description and use. — Granulated beet sugar is the refined prod- 
uct of beet-sugar factories. Unlike cane sugar, there is no inter- 
mediate product of raw sugar. Granulated beet and cane sugar are 
used interchangeably. Approximately 20 percent of the domestic 
consumption of sugar is domestic beet sugar. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
bv 4 largest 
companies 


Domestic 
production 


Tarif! status in 1937: 
Free, ad valorem 
rate, or equivalent 


21 


87 


76 


$99, 557, 238 






sugar). > 
135 percent (beet sugar) 



' Because of the preferential duty on Cuban sugar, practically all dutiable sugar imported into the United 
States is from Cuba. 

3. Recent tariff history.-— Act of 1913: 1.36 cents per pound (100° 
sugar); Cuban preferential rate, 20 percent lower. Act of 1922: 
2.39 cents per pound (100° sugar); Cuban preferential rate, 20 percent 
lower. Act of 1930: 2.65 cents per pound (100° sugar); Cuban prefer- 
ential rate, 20 percent lower. Present duty: 1.9875 cents per pound 
(100° sugar); Cuban preferential rate, 20 percent lower.^ 

4. Average ad valorem equivalent.- — All Cuban sugar: 1935, 45 per- 
cent; 1936, 37 percent; 1937, 37 percent; 1938, 45 percent. Beet sugar 
1935, 128 percent; 1936, 137 percent; 1937, 135 percent; 1938, 115 
percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports 


1935 


$88, 758, 570 
99, 557, 238 


$26, 071 
57, 881 


(2) 


1937.. 


(2) 







' Beet sugar; in addition 16.5 and 21.3 million dollars of granulated came from Latin America. 

2 NegligiMe. 

6. Industrial concentration and tariff policy.-— Plants are located in 
sugar-beet areas. Financial resources and consolidation of companies 
account largely for the concentration. Imports consist prmcipally of 
raw cane sugar from Cuba and from offshore domestic areas (free of 
duty), which is refined in coastal refmeries. Removal of the quotas 
and duties on sugar would increase substantially the imports of both 
raw and refined sugar, would eliminate a large part of the domestic 
production of beet sugar and of the continental ])ro(luction of cane 
sugar, and would appreciably lower the price, probably by an amount 
greater than the present duty on Cuban sugar. 

' Presidential proclamation June 8, 1931, estnblished present general duty. Cuban trade agreement 
September 3, 1931, increased the Cuban margin of preference by reducing the duty from 1..59 to 0.9.54 cents per 
pound. Between September 11 and December 27, 1939, a Presidential proclamation suspended quota pro 
visions of the Sugar Act of 1937, and restored Cuban preferential rate of 20 percent, i. e., 1.59 cents. 



CONCENTRATION OF ECONOMIC POWER 
CANNED SAUSAGE 



103 



1 . Description and -use, —Canned sausage is an article of food of only 
occasional use in a temperate climate. It is used more in tropical 
and semitropical regions where refrigeration facilities are not always 
available. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


37 


41 


80 


$.5, 998, 598 


20 percent.' 



1 Estimated. 

3. Recent tariff history. — Act of 1913: Free. Act of 1922: 20 per- 
cent. Act of 1930: 6 cents per pound, but not less than 20 percent 
ad valorem. Present duty: 6 cents per pound, but not less than 20 
percent ad valorem. 

4. Average ad valorem equivalent. — Not available. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$4, 612, 874 
5, 998, ,598 




$269, 395 


1937 







' Not separately reported. 

6. Industrial concentration ami tariff policy. — Side-line production 
by the large meat-packing companies accounts for the concentration. 
Imports probably consist of high-priced specialties. A substantial 
reduction in the duty would have little or no effect on the import 
situation. 

CANNED DOG AND CAT FOOD 

1. Description and use. — Canned dog and cat food in general is made 
of meat, m.cat products, or fish with either or both cereals and vege- 
tables. These ingredients are cooked and preserved in hermetically 
sealed cans. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 

domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


2? 


28 


83 


$20, 317, 230 









3. Recent tariff history.-— Act of 1913.^ Act of 1922.^ Act of 
1930: 10 percent, mixed food containing grain; * 20 percent, no cereal 

' Xo classififation, nor imports. 
< If unfit for humr.n consumption. 



257771— 41— No. 10- 



104 



CONCENTRATION OF ECONOMIC POWER 



content. Present duty: 5 percent, mixed food containing grain; 
20 percent, no cereal content. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 

1937 


$20, 317, 230 


None (3) 

(2) en 









1 Not separately reported. 

2 Not available. 
^ Negligible. 

6. Industrial concentration and tariff policy. — The recent develop- 
ment of the industry, as well as side-line production by the large meat- 
packing companies largely account for the concentration. Imports, 
indicated by foreign statistics of exports, are relatively small and con- 
sist mainly of foods with grain products. Removal of the duty would 
increase imports moderately and would lower prices slightly. 

CANNED SPAGHETTI 

1. Description and use. — Canned spaghetti is ordinarily preserved 
in tins, usually with tomato sauce. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937 
Free, ad valorem 
rate, or equivalent 


44 


47 


78 


$8, 957, 744 









3. Recent tariff history.— Act of 1913: 25 percent. Act of 1922: 
percent. Act of 1930: 35 percent. Present duty: 35 percent, 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



35 



Year 


Domestic 
production 


Imports 


Exports 


]93r). 


$6,715,607 
8, 957, 744 


None 
None 


(') 


1937 


(') 







• Not available. 



6. Industrial concentration and tariff policy. — Specialization, as well 
as side-line production by the large food-packing companies, probably 
accounts for the concentration. Canned spaghetti is largely an 
American product. A substantial reduction of the duty would prob- 
ably have little effect on the import situation. 

• Canadian Trade Agreement, effective January 1 , 1939. 



CONCENTRATION OF BCONOMIC POWER 1Q5 

GRAPE JUICE 

1. Description and use. — Grape juice is the unfermented, pasteurized 
product made chiefly of Concord grapes. It is bottled in pint or 
quart sizes, or canned in large sizes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


19 


23 


80 


$5, 010, 000 









3. Eecent tariff history.- — Act of 1913: 70 cents per gallon. Act of 
1922: 70 cents per gallon, plus $5 per proof gallon on alcohol content. 
Act of 1930: 70 cents per gallon, plus $5 per proof gallon on alcohol 
content. Present duty: 70 cents per gallon, plus $5 per proof gallon 
on alcohol content. 

4. Average ad valorem equivalent. — 1934: 42 percent; 1935: 116 per- 
cent; 1936: 52 percent; 1937: 30 percent; 1938: 106 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 385, 000 
5,010,000 


$23 
101 


(•) 


1937 


(') 







' Not separately reported. 

6. Industrial concentration and tariff policy. — Specialization and the 
establislmient of brands account largely for the concentration. A 
substantial reduction in the duty would increase moderately imports 
of unconcentrated juice from Canada and would probably increase 
greatly the imports of concentrated juice which is used as a raw 
material in the production of wine. 

CANNED PLUMS 

1. Description and use. — Canned plums consist of the ordinary 
types wliich are used for desserts and pastries. Prunes, which are a 
closely related fruit, are produced largely for drying. 

2. Industrial conceiitration , 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



106 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history.— Act of 1913: 20 percent. Act of 1922: 
35 percent. Act of 1930: 35 percent. Present duty: 35 percent. 

4. Average ad valorem equivalent.— 'None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 .. 


$692, 073 
712, 702 


$48, 546 
56, 795 


(') 




(') 







I Not available. 

G. Industrial concentration and tariff policy. — The production of 
plums for canning is localized in a few areas. The mdustry is a 
small part of the general fruit canning industry. Imports are used 
mahily by orientals. A substantial reduction of the duty would 
probably increase imports only moderately. 

CANNED CRANBERRIES AND SAUCE 

1. Description and use. — Canned cranberries and sauce are the 
ordinary cranberries of commerce preserved in tins. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarifT status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 - -- 


13 


94 


$3,721,259 


35 percent. 







3. Recent tariff history. — Act of 1913: 1 cent per pound. Act of 
1922: 35 percent. Act of 1930: 35 percent. Present duty: 35 per- 
cent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$2, 616, 023 
3, 721, 259 


8 


(') 


1937 


(') 







• Not available. 

6. Industrial concentration and tariff policy.- — The production of 
cranberries is localized in a few areas and a large portion of the crop 
is marketed as fresh berries. There are probably no imports. Re- 
duction or removal of the duty would not affect the import situation. 



CONCENTRATION OF BOONOMIC POWER 
CANNED SOUPS 



107 



1. Description and use. — Canned soups include all types commonly 
sold at retail. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


44 


59 


95 


$61,563,731 


35 percent. 





3. Recent tariff history.~Act of 1913: 35 percent. Act of 1922: 
35 percent. Act of 1930: 35 percent. Present duty: 35 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic j)roduction, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$47, 208, 754 
61,563,731 


$21, 392 
29,429 


$228,833 
283, 862 


1937 





6. Industrial concentration and tariff policy. — Experience, financial 
resources and integration, and the establishment of brands account 
for the present concentration. Imports consist in part of soups 
shipped from American branch plants in Canada. A substantial 
reduction of the duty would increase imports only slightly and would 
not lower prices appreciably. 

VEGETABLE PUREE (fOR INFANTS) 

1. Description and use. — Vegetable puree includes all types com- 
monly sold at retail for infant feeding. 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


12 


89 


$6,946,874 


35 percent. 







3. Recent tariff history. — Act of 1913: 25 percent. Act of 1922; 
35 percent. Act of 1930: 35 percent. Present duty: 35 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 388, 662 
6, 946, 874 


8 


(') 


1937. 


(') 







> Not available. 



108 CONCENTRATION OF ECONOMIC POWER 

6. Industrial concentration and tariff policy. — The recent develop- 
ment of the industry, specialization, and side-line production by a 
few of the large food canning companies account largely for the 
present concentration. A substantial reduction of the duty would 
probably have very little effect on the import-domestic price situation. 

BUCKWHEAT FLOUR 

1. Description and use. — Buckwheat flour is the principal product 
made from buckwheat. Combined with other flours it is used to 
make pancake flour mixtures. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



I Estimated. 



3. Recent tariff history.— Act of 1913: Free. Act of 1922: }^-cent 
per pound. Act of 1930: K-cent per pound. Present duty: ^(o-cent 
per pound. ^ 

4. Average ad valorem equivalent. — 1934, 20 percent; 1935, 20 per- 
cent; 1936, 17 percent; 1937, 9 percent; 1938, 16 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 — 


$656, 723 
844,287 


$1,007 


0) 


1937 - 


6,229 0) 









' Not available. 

6. Industrial concentration and tariff policy. — Many small local mills 
grind buckwheat flour. A large number of these are probably ex- 
cluded (value of product less than $5,000) from the census data. 
A substantial reduction of the duty would increase imports moderately 
and, especially in short-crop years, would tend to keep prices from 
rising rapidly. 

FRESH MUTTON AND LAMB 

1 , Description and use. — Fresh mutton and lamb are meats of every- 
day consumption. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


431 


523 


75 


$128, 270, 281 


43 percent mutton, 4 y 




percent lamb. 



* Canadian trade agreement, effective Jan. 1, : 



CONCENTRATION OF ECONOMIC POWER JQQ 

3. Becent tariff history .—Act of 1913: Free. Act of 1922: 2K cents 
per pound (mutton), 4 cents per pound (lamb). Act of 1930: 5 cents 
per pound (mutton) , 7 cents per pound (lamb) . Present duty: 5 cents 
per poimcl (mutton), 7 cents per pound (lamb). 

4. Average ad valorem equivalent.- — 1934, 35 percent (mutton), 
39 percent (lamb) ; 1935, 39 percent (lamb) ; 1936, 43 percent (mutton), 
45 percent (lamb); 1937, 43 percent (mutton), 49 percent (lamb); 
1938, 21 percent (mutton), 41 percent (lamb). 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$113,008,446 
128, 270, 281 


$5,772 
19, 240 


$108, 741 











6. Industrial concentration and tariff policy. — Many small estab- 
lishments (value of product less than $5,000) are not included in the 
census data. The few large meat-packing companies, with highly 
specialized marketing facilities, account for the concentration. Im- 
ports consist mainly of frozen meat. A substantial reduction of the 
duty would increase imports moderately and would lower prices 
especially in the New York area. 

CORNSTARCH 

1. Description and use. — Cornstarch is used as a food, and as an 
industrial material in industries, such as textile, paper, and laundry. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 . 


12 


89 


$35, 672, 363 


58 percent. 







3. Becent tariff history. — Act of 1913: K-cent per pound. Act of 
1922: 1 cent per pound. Act of 1930: !}{ cents per pound. Present 
duty: IK cents per pound. 

4. Average ad valorem equivalent. — 1934, 10 percent; 1935, 38 per- 
cent; 1936, 77 percent; 1937, 58 percent; 1938, 26 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935- — 


$26, 637, 504 
35, 672, 363 


$8 
7,060 


$1, 362, 277 


1937 


1,362,911 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources and integration, and the estab- 
lishment of brands account largely for the present concentration. 
One company has about 13 branch plants in foreign countries. A 
substantial reduction of the duty would probably affect only slightly 



110 



CONCENTRATION OF ECONOMIC POWER 



the import-domestic price situation in eastern coastal areas. Tapioca 
starch, a partial substitute for cornstarch, is imported free of duty. 

CORN-SIRUP MIXTURES 

1. Description and use. — Corn sirup is an intermediate product 
between cornstarch and corn sugar. Corn-sirup mixtures are a com- 
bination of corn sirup (chiefly) and other flavoring sirups. They are 
used principally as table sirup. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 



$10, 392, 615 



35 percent.' 



1 Estimated. 

• 1935 invoice analysis. 

3. Becent tarif history. — Act of 1913: \)i cents per poimd. 
1922: IK cents per pound. Act of 1930: 2 cents per pound, 
duty: 2 cents per pound. 

4. Average ad valorem equivalent. — (Not available.) 

5. Domestic production, imports, and exports. — 



Act of 
Present 



Year 


Domestic 
production 


Imports 


Exports 


1935 . . 


$9,993,408 
10, 392, 615 


$138 
(') 


$669, 107 


1937 , 


892, 088 







> Not available. 

6. Industrial concentration and tarif policy. — Side-line production 
of the large manufacturers of starch and the establishment of brands 
account largely for the concentration. Reduction or removal of the 
duty would probably have very little effect on the import-domestic 
price situation. 

CORN SUGAR 

1. Description and use. — Com sugar (dextrose) is made from corn- 
starch. It is used principally by the manufacturers of food products. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifr status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


10 


190 


$15,692,490 


23 percent. 







CONCENTRATION OF ECONOMIC POWER 



111 



3. Recent tariff history. — Act of 1913: l)i cents per pound. Act of 
1922: IH cents per pound. Act of 1930: 2 cents per pound. Present 
duty: 2 cents per pound. 

4. Average ad valorem equivalent. — None. 1934, 28 percent; 1937, 
23 percent (no imports in 1935, 1936, and 1938). 

5. Domestic ^production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$10. 975, 634 
15, 692, 490 


None 
$190 




1937 


363. 622 





6. Industrial concentration and tariff policy. — Side-line production 
of the large manufacturers of starch accounts largely for the con- 
centration. American companies own branch plants in the United 
Kingdom, France, and Belgium. Reduction or removal of the duty 
would have very little effect on the import-domestic price situation. 



1. Description and use 
and cooking oil. 

2. Industrial concentration, 1937 



CORN OIL (REFINED) 

-Refined com oil is used mainly as a salad 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


7 


195 


$12, 232, 292 


20 percent. 





« Estimate. 



3. Recent tariff history. — Act of 1913: 15 percent ad valorem. 
Act of 1922: 20 percent ad valorem. Act of 1930: 20 percent ad 
valorem. Present duty: 20 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports • 


Exports 1 


1935 


$9, 672, 920 
12, 232, 292 


$1,570,894 
2, 327, 181 


$72, 089 


1937 


47 232 







1 Classified as "edible." 

6. Industrial concentration and tariff policy. — Side-line production 
of the large manufacturers of cornstarch and the establishment of 
brands account for the concentration. Reduction or removal of the 
duty would probably have only a moderate effect on the import- 
domestic price situation. 



112 



CONCENTRATION OF ECONOMIC POWER 
CORN OIL CAKE AND MEAL 



1. Description and use. — Corn oil cake is the residue of the corn 
germ from which the oil has been expressed. Cake is ground into 
meal. They are used as feed for livestock. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 193?: 
Free, ad valorem 
rate, or equivalent 


7 


8 


180 


$952, 680 


15 percent.' 







3. Recent tariff history. — Act of 1913: 15 percent ad valorem. 
Act of 1922: Free. Act of 1930: Via cent per pound. Present duty: 
5(o cent per pound. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$452, 906 
952, 680 


0) 
(') 


0) 


1937 


(') 







1 Negligible. 

6. Industrial concentration and tariff policy. — Byproduct manufac- 
ture of the large starch-making companies and, to a limited extent, 
of the breakfast food companies accounts for the concentration. A 
large portion of domestic production (not included above) is mixed 
with other products and sold as corn gluten feed. Removal of the 
duty would probably have only a very moderate effect on the import- 
domestic price situation. 

DEXTRINE 

1. Description and use. — Dextrines are produced from corn, tapicoa, 
sago, potato, and other starches. They are used principally as 
adhesives and sizings. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


c 


6 


195 


$4, 124, 210 


72 percent (potato). 




48 percent (other). 



CONCENTRATION OF ECONOMIC POWER 113 

3. Recent tariff history. — Act of 1913: lYi cents per pound, potato; 
% cent per pound, other. Act of 1922: 2}^ cents per pound, potato; 
\)i cents per pound, other. Act of 1930: 3 cents per pound, potato; 
2 cents per pound, other. Present duty: 2}^ cents per pound, potato; ^ 
2 cents per pound, other. 

4. Average ad valorem equivalent. — Potato: 1934, 71 percent; 1935, 
75 percent; 1936, 75 percent; 1937, 72 percent; 1938, 72 percent. 
Other: 1934, 39 percent; 1935, 39 percent; 1936, 43 percent; 1937, 
48 percent; 1938, 47 percent. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


1 $2, 688, 567 
4, 124, 210 


8 $197, 958 
2 147, 448 


$225, 016 


1937 .. 


225, 814 







Less inclusive than 1937 data. 

Potato dextrine included $24,252 and $23, i 



6. Industrial concentration and tariff policy. — Side-hne production 
of the large manufacturers of starch largely accounts for the concen- 
tration. A substantial reduction of the duty would increase imports 
moderately and would lower prices slightly. 

' Trade agreement with the Netherlands, effective February 1, 1936. 



GROUP B: TEXTILES AND ALLIED PRODUCTS 

RAYON YARN (ACETATE, VISCOSE, AND CUPRAMMONIUM) 

1. Description and use. — Rayon is a textile yarn made by forcing a 
solution of cellulose, or its derivatives, through spinnerets and coagulat- 
ing it as solid filaments. Most of the production goes into the weaving 
of dress goods, linings, curtains, drapery fabrics, and upholsteries. 
A small amount is used in the knit goods industry, mostly for under- 
wear. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5' and 15 » 


{ >A 


2 80 
190 


} $204,791,000 


120 percent. 







> Acetate, estimated. 

' Viscose and cuprammonium, estimated. 

3. Recent tariff history.— Act of 1913: 35 percent ad valorem. 
Act of 1922: 45 cents per pound; minimum ad valorem — 45 percent. 
Act of 1930: 45 and 50 percent; minimum of 45 cents per pound. 
Present duty: 45 and 50 percent; minimum of 45 cents per pound. 

4. Average ad valorem equivalent. — 1934, 64 percent; 1935, 60 percent; 
1936, 125 percent; 1937, 120 percent; 1938, 128 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$146, 067, 000 
204,791,000 


$21,727 
309, 185 


$1, 158, 604 


1937 


809,489 







6. Industrial concentration and tariff policy. — Specilized production, 
important side-line production by one of the largest chemical com- 
panies, early patents, secret processes account largely for the concen- 
tration. A substantial reduction of the duty would increase imports 
greatly and would reduce prices appreciably. 



RAYON STAPLE FIBER 



1. Description and use. — Staple fiber is primarily a raw spinning 
fiber made by cutting untwisted continuous rayon filaments into 
short lengths corresponding to the staple of cotton or wool. It is 
adaptable for spinning so-called spun-rayon yarn and for blending 
with other fibers. 



114 



CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



115 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


, 


... 


$6, 177, 000 









3. Recent tariff history. — Act of 1913: 15 percent ad valorem. 
Act of 1922: 20 percent ad valorem. Act of 1930: 25 percent ad 
valorem. Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exjjorts. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$6, 177, 000 


$317, 000 
3, 847, 000 


• (■) 


1937 


(') 







1 Not reported separately. 

6. Industrial concentration and tariff policy. — Side-line production 
by the large manufacturers of rayon yarn and size of market account 
for the concentration. Imports from Japan, formerly chief source, 
consist of low-priced, UTegular lengths and sizes of fiber. A sub- 
stantial reduction of the duty would increase imports moderately 
and would lower prices. 



SPUN-RAYON CHALLIES AND TWILLS 

1^ 1. Description and 'Use.— Spun-rayon challies and twills are made 

o spun-rayon yarn produced on cotton-spinnmg machinery from 

/•aple fiber, cut from continuous rayon filaments. These spun-rayon 

labrics are plain-woven and are used for dresses and sports apparel. 

2, Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


190 


$1, 643, 797 


90 percent.' 











Estimated. 

All rayon fabrics (except pile). 



Act of 
Present 



3. Recent tariff history.— Act of 1913. ^ Act of 1922. 
1930: 45 cents per pound, plus 60 percent ad valorem 
duty: 45 cents per pound, plus 45 percent ad valorem.^ 

4. Average ad valorem equivalent {all rayon fabrics, except pile). — 
1934, 77 percent; 1935, 84 percent; 1936, 86 percent; 1937, 90 percent. 

1 Not an article of commerce until 1930. 

» French trade agreement, effective June 15, 1936. 



11(5 CONCENTRATION OF ECONOMIC POWER 

5. Domestic ^production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


0) 
$1,643,797 






1937 . . . 













1 Not available. 

6. Industrial concentration and tariff policy. — Side-line production 
by a few larg:e manufacturers of cotton fabrics, and size and nature 
of the market account largely for the concentration. A substantial 
reduction of the duty would uicrease imports greatly and would 
lower prices appreciably. 

RAYON MARQUISETTES 

1. Description and use.—Rvijon marquisettes are used primarily 
for window curtains; when dyed or printed, they are also used during 
some style periods in the dress industry. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
jjroduction 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$3, 603, 550 90 percent. 



' Estimated. 

* All rayon fabrics (except pile). 

3. Recent tariff history. — Act of 1913: 60 percent ad valorem. 
Act of 1922: 45 cents per pound, plus 60 percent ad valorem. Act 
of 1930: 45 cents per pound, plus 60 percent ad valorem. Present 
duty: 45 cents per pound, plus 45 percent ad valorem.^ 

4. Average ad valorem equivalent {all rayon fabrics except pile). — 
1934, 77 percent; 1935, 84 percent; 1936, 86 percent; 1937, 90 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


0) 
$3,063,550 


8 


(') 


1937 


(') 







Not available. 



6. Industrial concentration and tariff policy. — Some specialized pro- 
duction (partly on a commission basis), side-line production b}!- a few 
large manufacturers of rayon dress goods, and size of market account 
largely for the concentration. A substantial reduction of the duty 
would probably increase imports and would lower prices appreciably. 



French trade agreement, effective June 15, 1936. 



CONCENTRATION OF ECONOMIC POWER 
RAYON TAPESTRIES AND DRAPERIES 



117 



1. Description and use. — Tapestries are used for furniture upholstery 
and other articles of interior decoration. They are usually jacquard- 
figured, as are draperies. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or c(iuivalent 


6 


10 


190 


$1, 755, 441 


90 percent.2 





2 All rayon fabrics (except pile) . 

3. Recent tariff history. — Act of 1913: 60 percent ad valorem. 
Act of 1922: 45 cents per pound, plus 60 percent ad valorem. Act 
of 1930: 45 cents and 60 percent, nonjacquard; 45 cents plus 70 
percent, jacquard-figured. Present duty: 45 cents per pound, plus 
45 percent ad valorem.* 

4. Average ad valorem equivalent (all rayon fabrics except pile). — 
1934, 77 percent; 1935, 84 percent; 1936, 86 percent; 1937, 90 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(1) 
$1,755,441 


s 


8 


1937 





1 Not available. 



6. Industrial concentration and tariff policy. — Specialized production 
requiring for many types special looms, technical skill, and size and 
nature of the market account largely for the concentration. A 
substantial reduction of the duty would probably increase imports 
and would lower prices appreciably. 



RAYON VELVETS 



1. Description and use. — Velvets wholly of rayon are used for 
millinery, dress goods, artificial flowers, toy animals, upholstery, 
drapery, and for other decorative fabrics for interior furnishing. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



•French trade agreement, effective June 15, 



118 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 60 percent ad valorem. 
Act of 1922: 45 cents per pound plus 60 percent ad valorem. Act 
of 1930: 45 cents per pound plus 60 or 65 percent depending on pile. 
Present duty: 25 cents per pound plus 50 percent ad valorem.* 

4. Average ad valorem equivalent. — 1934, 69 percent; 1935, 69 
percent; 1936, 59 percent; 1937, 58 percent; 1938, 60 percent. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


(') 
$1, 585, 184 


$15, 856 
14, 665 


(') 


1937 - . 


(') 







i Not avaUable. 

6. Industrial concentration and tariff policy. — Some specialization, 
side-line production by manufacturers of velvet goods, and size of 
market probably account for the concentration. Imports consist 
mostly of high-quality goods and novelties. A substantial reduction 
of the duty would increase imports and would lower prices. 

RAYON DRESS GOODS (OF RAYON WARP AND SILK FILLING) 

1. Description and use. — Rayon dress goods are used for the manu- 
facture of women's dresses. They contain silk for filling which may 
in some instances constitute the cliief value of the goods. 

2. Industrial concentration, 1937. 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 


17 


83 


$3, 441, 309 


90 percent.i 







« Imports of all types of rayon fabrics other than pile. 

3. Recent tariff history.^ — Act of 1913: 60 percent ad valorem. 
Act of 1922: 45 cents per pound plus 60 percent ad valorem. Act 
of 1930: 45 cents per pound ])lus 60 or 70 percent depending on con- 
struction. Present duty: 45 cents per pound plus 45 percent ad 
valorem.^ 

4. Average ad valorem equivalent. — 1934, 77 percent; 1935, 84 per- 
cent, 1936, 86 percent; 1937, 90 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 441, 309 




(') 


1937 


(•) 







No comparable data available. 



' French trade agreement, effective June 15, 1936. 
• These rales apply only when rayon is the fiber of chief value. 
are dutiable according to the rates on silk. 



If silk is the fiber of chief value, the go jds 



CONCENTRATION OF ECONOMIC POWEU JXQ 

6. Industrial concentration and tarirff' policy. — Some specialization, 
side-line production by a few companies which manufacture large 
quantities of all-rayon dress goods, and size of market (higher-priced 
than all-rayon) account largely for the concentration. A substantial 
reduction of the duty would increase imports and would lower prices. 



NOVELTIES OF RAYON WARP MIXTURES (OTHER THAN DRESS GOODS) 

1. Descrijjtion and use. — Novelties of this material include such 
items as: Evening handbags, shoes, and wi'aps, millinery, bedspreads, 
and similar articles. 

2. Industrial concentration, 



1937. 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 


12 


92 


$1,973,977 













■ All rayon fabrics (except pile). 

3. Recent tarif history.'' — Act of 1913: 60 percent ad valorem. 
Act of 1922: 45 cents per pound, plus 60 percent. Act of 1930: 45 
cents per pound, plus 60 percent, not jacquard; 45 cents plus 70 per- 
cent jacquard. Present duty: 45 cents per pound, plus 45 percent 
ad valorem.^ 

4. Average ad valorem equivalent. — 1935, 84 percent; 1937, 90 per- 
cent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 -- - - 


$1,125,610 
1,973,977 


(0 
(') 


(') 


1937 . 


(') 







reported. 



6. Industrial concentration and tarif policy. — Side-line production 
by a few large manufacturers of silk and rayon goods, technical skill 
in designing, and size and nature of the market account largely for 
the concentration. A substantial reduction of the duty would 
increase imports greatly and would lower prices appreciably. 



' French trade agreement, effective June 15, 1936. 
8 For items in chief value of rayon. 



2.57771— 41— No. 10 9 



220 CONCElSrrRATION OF ECONOMIC POWER 

SILK MIXED LININGS (INCLUDING TAFFETAS AND TWILLS) 

1. Description and use.— Silk mixed linint^s are usually over 30 
inches wide and may include some jacquard-figured goods. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariS status in 1937: 
Free, ad valorem 
rate, or equivalent 




10 


89 


$1,004,817 


55 percent.i 







> Effective duty. 

3. Recent tariff history. — Act of 1913: 45 percent ad valorem. 
Act of 1922: 55 percent ad valorem. Act of 1930: 55, 60, and 65 
percent, depending on width and construction. Present duty: 55, 
60, and 65 percent, depending on width and construction.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$871, 222 
1,004,817 




(') 


1937 


(') 







• No comparable data available. 

6. Industrial concentration and tari;ff policy. — Some specialization 
(partly by commission weavers), side-line production by a few com- 
panies which manufacture large quantities of rayon linings and size 
of market account largely for the concentration. A substantial re- 
duction of the duties would increase imports and would lower prices. 

SILK VELVETS (WITH RAYON OR COTTON FILLING) 

1. Description and use. — Velvets are pile goods distinguished by 
dense brush-like tufts or loops projecting from the body of the cloth. 
Velvets are chiefly used in the women's apparel industries, in millinery, 
for interior decorating, and other minor uses. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 --- 


7 


190 


$2, 820, 631 









3. Recent tar ijf history. — Act of 1913: 50 percent ad valorem. Act 
of 1922: 60 percent ad valorem. Act of 1930: 65 percent, pile 

» Silk mixtures not over 30 inches in width and not jacquard-figured reduced from 60 to 50 percent, Swiss 
Trade Agreement, effective Feb. 15, 1936. 



CONCENTRATION OF ECONOMIC POWER 



wholly cut or uncut; 70 percent 
percent ad valorem.^'' 

4. Average ad valorem equivalent. — 1934 
cent; 1936, 57 percent; 1937, 51 percent. 

5. Domestic 'production, imports, and exports. 



121 

pile partly cut. Present duty: 50 

65 percent; 1935, 65 per- 



Year 


Domestic 
production 


Imports 


Exports 1 


1935 , . 


$934, 681 
2,820,631 


$160,039 
96, 004 


$172, 102 




24,640 








• Includes also plushes and chenilles not shown in production statistics. 

6. Industrial concentration and tariff policy. — Specialization, shifts 
in styles, and size of market account largely for the concentration. 
Imports consist of specialties and the more common types of velvets. 
A substantial reduction of the duty would increase imports and would 
lower prices. 

ALL-SILK LINGERIE SATINS 

1. Description and use. — Lingerie satins are used for the manufac- 
ture of slips, nightgowns, negligees, etc. They are over 30 inches 
wide, mostly plain woven, and are usually valued at less than $5.50 
per pound. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


16 


16 


77 


$4, 149, 800 


65 percent.' 







1 Effective duty. 

3. Recent tarif history. — Act of 1913: 45 percent ad valorem. Act 
of 1922: 55 percent ad valorem. Act of 1930: 55, 60, or 65 percent, 
depending on construction and width. Present duty: 55, 60, or 65 
percent, depending on construction and width. ^^ 

4. Average ad valorem equivalent. — -None. 

5. Domestic production, imports and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




(0 
$4, 149, 800 




(') 


1937 


(') 







> Not separately reported. 

6. Industrial concentration and tariff policy. — Some specialization 
(commission weavers) and side-line production by a few companies 
which manufacture large quantities of broad silks accounts largely for 
the concentration. A substantial reduction of the duty, especially in 
the lower value brackets, would increase imports and lower prices. 

'« French trade agreement, effective June 15, 1936. 

" French trade agreement reduced the duty on all-silk goods valued at $6.50 per pound or over. 



122 



CONCENTRATION OP^ BCONOMIC POWER 
ALL-SILK FRENCH CREPES 



1. Description and use. — French crepes, after dyeing or printing, 
can be used in dresses, but the bulk of this fabric is finished into cloth 
and used for lingerie. Such fabrics are all over 30 inches in width, 
mostly plain-woven, and are usually valued at less than $5.50 per 
pound. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 - - 


15 


92 


$1,409,252 


56 percent.' 







1 Effective duty. 



3. Recent tarif history. — Act of 1913: 45 percent ad valorem. Act 
of 1922: 55 percent ad valorem. Act of 1930: 55 percent ad valorem. 
Present duty: 55 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


0) 
$1,409,252 


(') 


(') 


1937 


(') 







' Not separately reported. 

6. Industrial concentration and tari^ff policy.- — Some specialization 
(partly by commission weavers), side-line production by a few com- 
panies which manufacture large quantities of broadsilks, and size of 
market account largely for the concentration. A substantial reduc- 
tion of the duty especially in the lower-value brackets would increase 
imports and would lower prices. 

infants' anklets and slack socks (ALL-COTTON, ALL- RAYON, AND 
RAYON WITH COTTON) 

1. Description and use. — Infants' anklets and slack socks include 
those of all-cotton, all-rayon, and those of rayon combined with 
cotton. They are made on circular hosiery machines of small 
diameters. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 -- --- 


22 


76 


$1,929,820 


50 percent.' 







« Estimated 



" French trade agreement reduced the duty on all-silk goods valued at $5.50 per pound or ( 



CONCENTRATION OF ECONOMIC POWER 



123 



3. Recent tariff history. — Act of 1913: 30, 40, 50 percent, chief value 
cotton; 60 percent, rayon chief value. Act of 1922: 50 percent, cot- 
ton; 45 cents per pound, plus 60 percent, rayon. Act of 1930: 50 
percent, cotton; 45 cents per pound, plus 65 percent, rayon. Present 
duty: 50 percent, cotton; 45 cents per pound, plus 65 percent, rayon, 

4. Average ad valorem equivalent. — Not available. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . ... 


0) 
$1,929,820 






1937 





' Not available. 

» Not available, but probably very small. 

6. Industrial concentration and tariff policy. — The special sizes of 
machinery needed and the small size of the market account for the 
concentration. Japanese exports of all types of cotton and of rayon 
hosiery to the United States were restricted b}'' informal agreement 
from January 1, 1937, to December 31, 1939. A substantial reduction 
of the duty would probably increase imports moderately and would 
lower prices of the cheaper grades. 

boys', misses', and children's anklets and slack socks (all- 
rayon AND rayon with COTTON TOPS) 

1. Description and use. — The above type of hosiery is seamless and 
is made on circular hosiery machines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




« 


190 


$1,300,033 


77 percent.' 





3. Recent tariff history. — Act of 1913: 60 percent ad valorem. Act 
of 1922: 45 cents per pound and 60 percent ad valorem. Act of 1930: 
45 cents per pound and 65 percent ad valorem. Present duty: 45 
cents per pound and 65 percent ad valorem. 

4. Average ad valorem equivalent. — Not available. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935.— 


$1, 300, 033 


(?) 
(?) 


(') 


1937 


(') 







1 Not available. 

' Not available, but probably very small. 



124 CONCENTRATION OF ECONOMIC POWER 

6. Industrial concentration and tariff policy. — Although many hosiery 
mills are equipped to make anklets in these sizes apparently only a 
very few make them of rayon, either exclusively or along with other 
types. Japanese exports of all types of cotton and of rayon hosiery 
to the United States were restricted by informal agreement from 
January 1, 1937, to December 31, 1939. A substantial reduction of 
the duty would probably increase imports moderately and would 
lower prices of the cheaper grades. 

women's anklets and slack socks (seamless, all-cotton) 

1. Description and use. — Women's seamless all-cotton anklets and 
slack socks are fabricated on circular hosiery machines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15 


15 


83 


$681, 631 









3. Recent tariff history. — Act of 1913: 30, 40, or 50 percent ad val- 
orem according to value bracket. Act of 1922: 50 percent ad valorem. 
Act of 1930: 50 percent ad valorem. Present duty: 50 percent ad 
valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(0 
$681, 631 




(^) 


1937 


(') 







' Not available. 

' Not separately reported. 

6. Industrial concentration and tariff policy. — Although many hosiery 
mills are equipped to make this small specialty item, apparently only 
a few make it along with other types. Imports are probably very 
small. Japanese exports of aU types of cotton and of rayon hosiery 
to the United States were restricted by informal agreement from 
January 1, 1937, to December 31, 1939. A substantial reduction of 
the duty would probably increase imports moderately and would 
lower prices of the cheaper grades. 



cotton blanketings 



1. Description and use. — Cotton blanketings are napped fabrics 
sold in the piece. Although used chiefly for blankets, this cloth may 
also be used for mechanical purposes or may be used in the manufac- 
ture of wearing apparel such as bathrobes. 



CONCENTRATION OF ECONOMIC POWER 
2. Industrial concentration, 1937. — 



125 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


190 











' Estimated. 
■> 1936. 
: 1938. 

3. Fecent tarif history. — Act of 1913: 30 percent ad valorem. Act 
of 1922: 40 or 45 percent ad valorem, depending on finish. Act of 
1930: 30 percent but not less than 14^ cents per pound, non-Jacquard; 
45 percent, Jacquard. Present duty: 30 percent but not less than 
14K cents per pound, non-Jacquard ; 45 percent, Jacquard. 

4. Average ad valorem equivalent. — 1936, 74 percent; 1938, 30 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 837, 365 
4, 259, 854 


None 
None 


(I) 


1937 


(') 







6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, some side-line production, and establislmient of 
brands probably account for the concentration. A substantial reduc- 
tion of the duty would increase imports only moderately and would 
lower prices slightly. 



ALL-COTTON BLANKETS (JACQUARD, NON-JACQUARD, AND CRIB) 

1. Description and use. — All-cotton blankets are made from napped 
fabrics and are used principally as bed blankets. Jacquard-figured 
blankets are woven-figured at the loom; non-Jacquard blankets may 
be made with stripes, checks, or in plain colors. Crib blankets are 
small sizes woven specially for cribs and small beds. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4-10'.. .. 


14-11 


1 77-100 


$18,994,779 









Ranges cited indicate variation in companies, plants, and concentration for the above types. 
' Estimated. 



126 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 25 percent not Jacquard- 
figured; 30 percent Jacquard-figured. Act of 1922: 25 percent not 
Jacqiiard-figurcd; 45 percent Jacquard-figured. Act of 1930: 30 per- 
cent, but not less than 14}^ cents per pound, not Jacquard; 45 percent, 
Jacquard. Present duty: 30 percent, but not less than 14}^ cents per 
pound, not Jacquard; 45 percent, Jacquard. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$10, 893, 356 
18, 944, 779 


$534 
7,599 


$378 831 


1937 


485, 848 





6. Industrial concentration and tariff policy.- — Specialized production 
on a large scale, some side-line production, and establishment of 
brands account for the concentration. A substantial reduction of the 
duty would increase imports only moderately and would lower prices 
slightly. 

COTTON TOAVELING (PLAIN WOVEN) 

1 . Description and use. — Plain woven cotton towels and toweling are 
largely crash, glass, and dish towels. Some of them are made with 
cotton warp and linen filling. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14... 


15 


76 


$6,560,802 


25 percent. 





3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$4, 288, 727 
6, 560, 802 


$10, 809 
202,540 


(1) 


1937 









Not available. 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, some side-line production, and establishment of 
brands account largely for the concentration. Removal of the duty 
would increase imports only moderately and would lower prices 
slightly. 



CONCENTRATION OF ECONOMIC POWER ]^27 

COTTON TOWELING (DAMASK AND OTHER JACQUARD-WOVEN) 

1. Description and use. — Cotton toweling, which is damask or 
Jacquard-woven, includes towels made with intricate floral designs, 
or border designs, or with names woven in by Jacquard attachments. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


190 


$993, 582 


40 percent. 





3. Recent tarijf history. — Act of 1913: 30 percent ad valorem. Act 
of 1922 : 40 percent ad valorem. Act of 1930 : 40 percent ad valorem. ^^ 
Present duty: 40 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$993, 582 


$21,317 
48, 410 


(1) 


1937 1 


(') 







' Not available. 

6. Industrial concentration and tarijf policy .—Specialized production 
on a large scale, establishment of brands, and size of market account 
largely for the concentration ; a substantial reduction of the duty would 
increase imports moderately and would lower prices. 

TURKISH AND TERRY-WOVEN TOWELS AND TOWELING (INCLUDES HUCK 
TOWELS AND TOWELING) 

1. Description and use. — Terry towels and toweling are made with a 
warp-pile which consists of small uncut loops. This construction 
increases the absorption properties of the towel. Huck towels are 
woven with a huckaback weave in which small filling floats form the 
pattern on the falls of the cloth. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


26 


29 


78 


$26,464,753 


40 percent. 







" Duty reduced temporarily to 30 percent by the Czechoslovak trade agreement, April 1938 to April 1939. 



128 CONCENTRATION OF ECONOMIC POWEll 

3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 40 percent terry-woven; 25 percent huck-woven. Act 
of 1930: 40 percent terry-woven; 25 percent huck-woven. Present 
duty: 30 percent, terry towels valued at more than 45 cents each/* 
remainder at 40 percent; 25 percent, huck-woven. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports 


1935 


$26,464,753 


$27,840 
104, 600 


(') 


1937 


(') 







> Not available. 

' Terry-woven cloth only. 

6. Industrial concentration and tariff policy. — Some specialized 
production on a large scale and establishment of brands account 
largely for the concentration. A substantial reduction of the duties 
would increase imports moderately and would lower prices. 

COTTON WASHCLOTHS 

1. Description and use. — Cotton washcloths are small squares cut 
from fabric, usually terry-woven, with or without borders. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 


18 


s. 


$3,269,361 


40 percent. 



3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 40 percent ad valorem. 
Present duty: 40 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,826,810 
3, 269, 361 


S 


(') 


1937 


(') 







> Not available. 



6. Industrial concentration and tariff policy. — Specialized production, 
some side-line production, and establishment of brands account 
largely for the concentration. A substantial reduction of the duty 
would increase imports moderately and would lower prices. 

" United Kingdom trade agreement, effective January 1, 1939. 



CON€ENTR.\TION OF ECONOMIC POWER 129 

COMBED OR PART-COMBED COTTON GOODS 

1. Description and use. — Combed or part-combed cotton goods 
include twills, sateens, and moleskins. They comprise such fabrics 
as kiiaki, gabardine, coutils, Venetians. These cloths are used in the 
manufacture of uniforms, linings, umbrellas, and wearing apparel. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 
largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 to 15 ■ 


"7-17 


I 77-90 


$10, 956, 238 


30 percent. ' 







1 Ranges cited indicate variation in companies, plants, and concentration for the above types. 
' Estimated. 

3. Recent tarij^ history . — Act of 1913: 10 to 27K percent ad valorem, 
dependmg on kind. Act of 1922: 13 to 30 percent ad valorem, de- 
pending on kind. Act of 1930: 14.2 to 4lK percent ad valorem, 
depending on kind ^^ Present duty: 14.2 to 41 K percent ad valorem, 
depending on kind. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 .. 


$10, 956, 238 




(') 


1937 


(') 







1 Not available. 

6. Industrial concentration and tarirff policy. — Side-line production 
by a few large manufacturers of cotton goods, some specialization, 
and size of market for the different types included account largely 
for the concentration. A substantial reduction of the duty would 
increase imports and would lower prices. 

PAJAMA CHECKS AND COMBED OR PART-COMBED DIMITIES 

1. Description and use. — Pajama checks are open-weave fabrics with 
cord effects in both warp and filling and are made from carded print- 
cloth yarns. Dimities are light-weight open-weave fabrics with cord 
effects running warp-wise in the cloth. These fabrics are used in the 
manufacture of underwear, dresses, curtains, bedspreads, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 
largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 and 11 


{ .1 


} ,» 


$4, 205, 772 


30 percent. ' 







'•Rate reduced to WYi to 32^ percent ad valorem on cloths valued at over 70 cents per pound. United 
kingdom trade agreement, effective January 1, 1939. 



130 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 12^ to 15 percent ad valorem 
depending on kind. Act of 1922: 17 to 30 percent ad valorem de- 
pending on kind. Act of 1930: 19.8 to 38 percent ad valorem depend- 
ing on kind. Present duty: 19.8 to 38 percent ad valorem depending 
on kind.^® 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domostic 
production 


Imports 


Exports 


1935 


$1, 779, 787 
4, 205, 772 


S 




1937 







• Not avaUable. 

6. Industrial concentration and. tariff policy.- — Side-line production 
by a few manufacturers of cotton goods and size of market account 
largely for the concentration. A substantial reduction of the duty 
would increase imports moderately and would lower prices slightly. 

COTTON PLAIDS AND SEERSUCKERS 

1. Description and use. — Plaids and seersuckers are medium-fine 
cotton fabrics, the former in check patterns and the latter in checks 
or stripes. They are used in the manufacture of wearing apparel 
for men, women, and children, principally outerwear for summer 
seasons. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 
larcest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 and 8 


{ I 


} 190! 


$1, 871, 565 


30 percent.' 





3. Recent tari^ff history. — Act of 1913: 12}^ to 22}^ percent ad valorem 
depending on kind. Act of 1922: 23% to 35.6 percent ad valorem 
depending on kind. Act of 1930: 25.2 to 38.5 percent ad valorem 
depending on kind. Present duty: 25.2 to 38.5 percent ad valorem 
depending on kind.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


0) 
$1,871,565 




(') 
(1) 


1937 







> Not avaUable. 

"Rates reduced to 14!-^ to 27^^ percent ad valorem on cloths valued over 70 cents per pound. United 
Kingdom trade agreement, effective January 1, 1939. 

" Rates reduced to 20 to 29H percent ad valorem on cloth valued over 90 cents per pound, United King- 
dom trade agreement, eflective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 



131 



6. Industrial concentration and tariff policy. — Side-line production 
by a few manufacturers of cotton goods and shrinkage of the market 
in recent years account largely for the concentration. A substantial 
reduction of the duty would increase imports moderately and would 
lower prices slightly. 

COTTON OUNCE AND NUMBERED DUCK (EXCEPT TIRE DUCK) 

1. Description and use. — Duck is a heavy cotton fabric made from 
single yarns in both warp and filling and also from plied yarns. Duck 
is used for such items as tents, awnings, tarpaulins, conveyor belting, 
filter cloths, sails, and for various mechanical goods. 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 
largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


81 


18 


J 78-85 


$9, 860, 231 


14 percent. 





1 Estimated. 

' Indicates variation in concentration for the types included. 

3. Recent tariff history. — Act of 1913: 7K to 10 percent ad valorem 
depending on kind. Act of 1922: 11}^ to 13^^ percent ad valorem 
depending on kind. Act of 1930: 11% to 15J^ percent ad valorem 
depending on kind. Present duty: 11% to 15% percent ad valorem 
depending on kind. 

4. Average ad valorem equivalent. — 1934, 14 percent; 1937, 14 
percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$8, 5-18, 095 
9, 860, 231 


(■) 


$147, 579 
206,296 


1937 





1 Not available. 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, manufacture in part according to specifications, and 
establishment of brands account largely for the concentration. Re- 
moval of the duty would probably have only a minor effect on the 
import-domestic price situation. 



COTTON TABLE DAMASK 



1. Description and use. — Cotton damask is a woven -figured, single 
fabric having warp-sateen figures on a filling-sateen ground, or vice 
versa. Table damask is made chiefly into tablecloths, napkins, 
runners, and doilies. 



132 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concenh^ation, 1937 . — 



Total numbor of companies • 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 
largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 


15 


77 


$2,980,205 


30 percent. 







3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad 
valorem. Present duty: 30 percent ad valorem.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — ■ 



Year 


Domestic 
production 


Imports 


Exports 




$3, 319, 713 
2, 980, 205 


$378, 513 
1,434,028 


$85,215 


1937 . . 


66,720 







6. Industrial concentration and tariff policy. — Specialized production, 
some side-line production, and shrinkage of the market probably 
account for the concentration. A substantial reduction of the duty 
would increase imports and would lower prices. 

bird's-eye diaper cloth 

1. Description and use. — Bird's-eye diaper cloth is a bleached fabric 
woven with a diamond or bird's-eye design. It is made of medium 
warp yarn and coarse filling. This fabric is often napped to give a 
soft flannel finish. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937; 
Free, ad valorem 
rate, or equivalent 


9 


10 


85 


$2, 060. 829 


20 percent.' 









3. Recent tariff history. — Act of 1913: 12^ to 15 percent ad valorem 
depending on classification. Act of 1922: 17K to 18^ percent ad 
valorem depending on classification. Act of 1930: 19.3 to 20.35 per- 
cent ad valorem depending on classification. Present duty: 19.3 to 
20.35 percent ad valorem depending on classification.'^ 

4. Average ad valorem equivalent. — None. 

" A small reduction of the duty esisted under the Czechoslovac trade agreement, April 1938 to April 
1939. 

'• Cloths valued at 80 cents or more per pound, 14.5 to 15^ percent ad valorem. United Kingdom trade 
agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



133 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 653, 378 
2, 050, 829 


(1) 


{') 


1937 


(') 











1 Not available. 

6. Industrial concentration and tariff policy. — Some specialized 
production on a moderate scale, side-line production, and size of 
market account largely for the concentration. A substantial reduc- 
tion of the duty would increase imports moderately and would lower 
prices. 

COTTON TIRE FABRICS (SQUARE-WOVEN CONSTRUCTION) 

1. Description and use. — Tire fabrics are cotton cloths which, to- 
gether with rubber, are used in the manufacture of tires for automo- 
mobiles, trucks, motorcycles, and bicycles. 

2. Industrial concentration, 1937 . — 



Total number of companies 



Total 
number 
of plants 



Percent of 

domestic 

production 

by 4 largest 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$3, 288, 816 



3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad 
valorem. Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 288, 816 


iii 


(0 


1937 _ - 


(') 









' Not available. 

6. Industrial concentration and tariff ^o/ic?/.— Specialized produc- 
tion, some side-line production, contractual selling, shrinkage of the 
market (cord now used more commonly) account largely for the con- 
centration. Removal of the duty would probably have only a minor 
effect on the import-domestic price situation. 



COTTON GAUZE, TOBACCO AND CHEESE CLOTH (THREAD COUNT 36 BY 32 
AND LOWER) 

1. Description and use. — Gauze, tobacco and cheese cloth are plain- 
woven cloths of open construction, grey or bleached. These cloths 
are used for a variety of purposes including covering for tobacco 
plants, surgical gauze, bandages, and dusting cloths. 



134 CONCENTRATION OF ?:CONOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 


21 


31 


77 


$17, 856, 443 


23 percent.' 





3. Recent tariff history. — Act of 1913: 12)^ to 15 percent ad valorem 
depending on kind. Act of 1922: 17 to 22 percent ad valorem de- 
pending on kind. Act of 1930: 19.8 to 25.25 percent ad valorem 
depending on kind. Present duty: 19.8 to 25.25 percent ad valorem 
depending on kind.-" 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$12, 763, 186 
17, 856, 443 


(■) 




1937 





1 Not available. 



6. Industrial concentration and tariff policy. — Specialized produc- 
tion on a large scale and side-line production by a few manufacturers 
of cotton goods account largely for the concentration. A substantial 
reduction of the duty would increase imports moderately and would 
lower prices slightly. 



WOOLEN AND WORSTED FABRICS 

1. Description and use. — Woolen and worsted fabrics include here 
only those for men's suits, overcoats, and topcoats; women's coats, 
suits, and dresses; and interlinings without horsehair. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3tol5i 


'3-16 


1 77-100 


$40, 579, 089 


87 percent. 







' Range cited indicates variation in companies, plants, and concentration, for the above classes. 

3. Recent tariff history. — Act of 1913: 35 percent ad valorem. 
Act of 1922: 24, 37, and 45 cents per pound plus 40 and 50 percent 
depending on value. Act of 1930: 50 cents per pound plus 50, 55, 
and 60 percent depending on value. Present duty: 40 cents per 
pound plus 45 percent.^' 50 cents per pound plus 40 percent. 50 
cents per pound plus 35 percent. 

''0 Rates reduced to 14 '/i to 1894 percent ad valorem on cloths valued over 70 cents. United Kingdom trade 
agreement, effective January 1, 1939. 
•' Trade agreement with the United Kingdom, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 135 

4. Average ad valorem equivalent. — 1934, 86 percent; 1935, 88 per- 
cent; 1936, 88 percent; 1937, 87 percent; 1938, 88 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 2 


Exports 2 


1935 


(■) 
$40, 579, 089 


$4, 675, 197 
8, 836, 570 


339, 026 
374, 471 


1937 - 





1 Not available. 

> Includes all woolen and worsted fabrics. 

6. Industrial concentration and tariff policy. — Although there are 
508 establishments producing varied products valued at $541,000,000 
in 1937, speciahzation and side-line production apparently account 
for the concentration in the above products. Imports consist mainly 
of fine woolens and worsteds. The specific rates of the compound 
duty are compensatory for the duty on raw wool. A substantial 
reduction in the duty, including the duty on raw wool, would increase 
imports greatly and would lower prices appreciably. 

BILLIARD CLOTHS 

1. Description and use. — Billiard cloths are made of woolen material. 
They are used to cover billiard and pool tables. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



> Estimated. 

3. Recent tariff history.— Act of 1913: 35 percent. Act of 1922: 24 
cents to 45 cents per pound plus 40 to 50 pexTent ad valorem. ^^ Act 
of 1930: 50 cents per pound plus 50 to 60 percent ad valorem. Pres- 
ent duty: 50 cents per pound plus 40 percent ad valorem. ^^ 

4. Average ad valorem equivalent: 1935, 69 percent; 1936, 68 per- 
cent; 1937, 70 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$601, 841 
663, 660 


$47, 024 
84,828 


0) 


1937 


(') 







> Not separately reported. 



" Specific duty applies to wool content only. 
23 Belgian trade agreement, effective May 1, 



257771— 41— No. IC 



136 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration and tariff policy. — Although many plants 
are equipped to produce billiard cloth, apparently only a few specialize 
in its manufacture. Imports are of a higher quality than the bulk 
of domestic production. A substantial reduction of the duty would 
probabh' increase imports and would lower prices. 

AUTO CLOTHS (WITH PILE) 

1. Description and use. — Auto cloths, with pile, are made of mohair 
and wool pile with a cotton foundation. They are used for the 
upholstery of automobiles. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


10 ' '90 


$30. 112. 784 79 percent. 













1 Estimated. 

3. Recent tariff history . — Act of 1913: 40 and 45 percent ad valorem. 
Act of 1922: 40 cents a pound and 50 percent ad valorem. Act of 
1930: 44 cents a pound and 50 or 55 percent ad valorem. Present 
duty: 44 cents a pound and 40 percent ad valorem.-^ 

4. Average ad valorem equivalent. — 1934, 72 percent; 1935, 72 
percent; 1936, 73 percent; 1937, 79 percent; 1938, 89 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic Tmn^rfcl 

production Imports' 


Exports 


1935 


$27, 526, 791 
30, 112, 784 


$27,993 
173,079 


(») 




(») 







1 Pile fabrics. 

> Nil or negligible. 

6. Industrial concentration and tariff policy. — Specialization, use of 
special looms and spinning machines, economies of large-scale pro- 
duction, and contractual selling account largely for the concentration. 
Imports consist of pile fabrics mostly for women's wear. A substan- 
tial reduction of the duty, including the duty on raw wool, would 
increase imports and would lower prices. 

" Trade agreement with the United Kingdom, January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 
OILED WATERPROOF OUTER GARMENTS 



137 



1 . Description and use. — Oiled waterproof outer garments are usually 
those garments made to shed water or snow. Such garments include 
"slickers" and coats and trousers used largely by fishermen or other 
seafaring men, 

2. Industrial concentration, 1937. — 



Total 
Total number of companies number 
1 of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14. - 1 15 


87 


$3, 673, 380 


37}.^ percent. 



3. Recent tariff history. — Act of 1913: 30 percent ad valorem. 
Act of 1922: 35 percent ad valorem. Act of 1930: 37}^ percent ad 
valorem. Present duty 37}^ percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 





Year 


Domestic 
production 


Imports 


Exports 


1935 




i 0, 




(') 


1937 




$3,673,380 


0) 


i 





1 Not available. 

6. Industrial concentration and tariff policy . — Specialized production, 
some side-line production, and size of market account largely for the 
concentration. A substantial reduction of the duty would increase 
imports moderately and would lower prices slightly. 



JUTE YARNS 

1. Description and use. — Jute yarns spun for sale, as such, are 
used principally in the manufacture of wool carpets and rugs. They 
are used as backing and do not show on the surface. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


6« 


.8 


175 


$14, 787. 400 


54 percent. 







138 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 15 to 20 percent ad valorem 
dependinp; on size. Act of 1922: 2}^ to 7 cents per pound depending 
on size. Act of 1930: 2% to 7 cents per pound depending on size. 
Present duty: 2]i to 7 cents per pound depending on size. 

4. Average ad valorem equivalent. — 1935, 48 percent; 1936, 60 per- 
cent; 1937, 54 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$11,022,995 
14, 787, 400 


$606 
335, 749 


(') 


1937 ... 


0) • 







1 Includes small quantities of flax and hemp yarns. 
' Negligible. 

6. Industrial concentration and tariff policy . — Specialized production 
on a large scale, size of market, and financial resources and integration 
account largely for the concentration. The principal company owns 
mills in India. A substantial reduction of the duty would increase 
imports moderately and would lower prices slightly. 

BAGGING FOR BALING COTTON 

1. Description and use. — Bagging for baling cotton is a coarse 
fabric, usually of jute, which is usecl to wrap bales of raw cotton. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




' 7 


185 


$5,830,568 


13 percent. 





3. Recent tariff history . — Act of 1913: Free. Act of 1922: ^(o cent 
per square yard, 15 to 32 ounces; %o cent per pound over 32 ounces. 
Act of 1930: ^{o cent per square yard, 15 to 32 ounces; fia cent per 
pound over 32 ounces. Present duty: %q cent per square yard, 15 to 
32 ounces; Ko cent per pound over 32 ounces. ^^ 

4. Average ad valorem equivalent. — 1934, 13 percent; 1935, 15 per- 
cent; 1936, 14 percent; 1937, 13 percent; 1938, 11 percent. 

5. Domestic production, imports, and exports. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 837, 733 
5, 830, 568 


$457,611 
743, 827 


(.) 


1937 - 


0) 







Not available, probably none. 



" Three-tenths of a cent per pound rate for bagging over 32 ounces per square yard bound by terms of 
United Kingdom trade agreement, effective Jan. 1, 1939. 



CONCENTRATION OF BCONOMIC POWER 



139 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, size of market, and financial resources and integration 
account largely for the concentration. The principal company- 
owns mills in India which were established when the act of 1913 
placed this product on the free list. Removal of the duty would 
increase imports substantially and would lower prices moderately. 

LINOLEUM AND CORK CARPET (OTHER THAN INLAID) 

1. Description and use. — Linoleum is one of the more important 
hard-surface floorings and is produced in several qualities, both 
plain and printed. Cork carpet is similar to linoleum, but contains 
a higher proportion of cork and is more resilient and sound-deadening. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 to 4' 


•3-4 


100 


$9,505,067 


35 percent. 





' Ranges cited Indicate variation in companies and plants. 

3. Recent tariff history. — Act of 1913: 30 percent ad valorem. 
Act of 1922: 35 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 25 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports^ 


Exports 


1935.... 


$5, 095, 349 
9, 505, 067 


$275, 000 
327,000 


(2) 


1937 


(?) 





• Estimated. 

' Not separately reported but negligible. 

6. Industrial concentration and tariff policy.- — Specialization, eco- 
omies of large-scale production, consolidations, and establishment of 
brands account for the concentration. A substantial reduction of the 
duty would increase imports moderately and would lower prices 
slightly. 

INLAID LINOLEUM 

1. Description and use. — Inlaid linoleiun is of two types: The 
straight-line, and the molded. Straight-line linoleum is made by 
pressing die-cut shapes of different colors on a burlap base; molded 
linoleum is made by pressing on a burlap base assorted colors of 
linoleum mix in granulated form which have been arranged to form 
designs. 

" United Kingdom trade agreement, effective Jan. 1, 1939. 



240 CONOBNTRATION OF BCONOMIO POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larpest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 - 


4 


1 
100 $20,069,3117 42 percent. 













3. Recent tariff history. — Act of 1913: 35 percent ad valorem. 
Act of 1922: 35 percent ad valorem. Act of 1930: 42 percent ad 
valorem. Present duty: 32 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports ' 


1935 -- 


$13,193,369 
20, 069, 307 


$261, 579 
173. 596 


$40,000 


1937 ._ 


105,000 







6. Industrial concentration and tariff policy. — Specialization, econ- 
omies of large-scale production, consolidations, establishment of 
brands, and patents account for the concentration. Imports in 1935 
consisted principally of the straight-line types and were of lighter 
gages than the domestic product. A substantial reduction of the 
duty would increase imports moderately and would lower prices. 

ASPHALTED FELT-BASE RUGS 

1. Description and -Mse.— Asphalted felt-base rugs are made by print- 
ing complete rug designs on felt-base piece goods, cut to appropriate 
rug sizes. Also included is a minor item: Floor coverings narrower 
than 8/4. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8to9' 


19-12 


>75 


$19, 407, 794 


40 percent. 











• Ranges cited indicate variation in number of companies and plants. 
» Estimated. 

3. Recent tariff history.— Act of 1913: Not available. Act of 1922: 
40 percent ad valorem. ' Act of 1930: 40 percent ad valorem. Present 
duty: 25 percent ad valorem.^' 

4. Average ad valorem equivalent. — None. 



" United Kingdom trade agreement, effective January 1, 1939 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic pi^oduction, imports, and exports. — 



141 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$17, 315, 799 
19,407,794 


(0 


8 


1937 





I Not separately recorded, but small. 

6. Industrial concentration and tariff policy . — Specialized production 
and an early patent account largely for the concentration. Although 
the patent has expired, the company which owned it and a few li- 
censees remain the principal producers. The recent reduction of the 
duty 071 all asphalted felt-base floor coverings will probably increase 
imports moderately and will lower prices slightly. 



GROUP C: WOOD AND PAPER PRODUCTS 

CORK INSULATION 

1. Description and use. — Cork insulation includes blocks 
pipe covering, etc. It is made of compressed, ground cork. 

2. Industrial concentration, 1937. — 



slabs, 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 



93 percent. 



3. Recent tariff history.^ — Act of 1913: % cent per pound. iVct of 
1922: 30 percent ad valorem. Act of 1930: 2.5 cents per board-foot 
for blocks, slabs, etc. ; 5 cents per pound for pipe covering, etc. Pres- 
ent duty: 2.5 cents per board-foot for blocks, slabs, etc.; 5 cents per 
pound for pipe covering, etc. 

4. Average ad valorem equivalent. — 1934, 87 percent; 1935, 62 per- 
cent; 1936, 91 percent; 1937, 93 percent; 1938, 32 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$4, 490, 380 
8. 283, 683 


$5, 147 
76, 400 


(') 


1937 


$94, 078 







' Not available. 

6. Industrial concentration and tariff policy. — Specialization, econ- 
omies of large-scale production, and patents during the early stages 
of development account largely for the concentration. The principal 
domestic producers are also the principal importers from branch 
plants abroad. A substantial reduction of the duty would probably 
increase imports moderately and would lower prices slighth^ 

CORK STOPPERS 

1. Description and use. — Cork stoppers are made of either natural 
or composition cork in two general types, straight or tapered. They 
consist mostly of tapered corks made of natural cork in various sizes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 


17 


81 


$3, 680, 370 


34 percent. 







Cork bark and waste, free of duty. 
142 



CONCENTRATION OF ECONOMIC POWER 



143 



3. Recent tariff history.^ — Act of 1913: 12 and 15 cents per pound 
depending on size; shell corks, 30 percent ad valorem. Act of 1922: 
10, 12.5, 20, and 25 cents per pound, depending on size; shell corks 
30 percent ad valorem. Act of 1930: 10, 12.5, 25, and 31 cents per 
pound, depending on size; shell corks 75 cents per pound. Present 
duty: 10, 12.5, 25, and 31 cents per pound depending on size; shell 
corks 75 cents per pound. 

4. Average ad valorem equivalent. — 1934, 30 percent; 1935, 33 per- 
cent; 1936, 34 percent; 1937, 34 percent; 1938, 28 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 429, 414 
3, 680, 370 


$166, 627 
206, 197 


$42, 437 
106. 266 


1937 





6. Industrial concentration and tariff pciicy. — Specialization and 
economies of large-scale production account largely for the concen- 
tration. Two of the largest companies produce a full line of cork 
products and own factories abroad. A substantial reduction of the 
duty would increase imports moderatelv and would lower prices 
especially on the high-grade small-size stoppers, 

CORK GASKETS 

1. Description and use. — Cork gaskets, disks, wafers, and washers 
are made from natural and composition cork, mostly the latter, in a 
wide variety of sizes and shapes. Disks and wafers are used prin- 
cipally as liners for crown caps. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


185 


$2, 060, 480 


33 percent 







3. Recent tariff history.^ — Act of 1913: 12 and 15 cents per pound: 
30 percent ad valorem "(gaskets). Act of 1922: 10, 12.5, 20, and 25 
cents per pound; 30 percent ad valorem (gaskets). Act of 1930; 
12.5, 16, 25 cents per pound and 45 percent ad valorem depending 
on size and composition of disks, wafers, and washers, 16 cents per 
pound (gaskets). Present duty: 12.5, 16, 25 cents per pound and 
45 percent ad valorem depending on size and composition of disks, 
wafers, and washers, 16 cents per pound (gaskets). 

4. Average ad valorem equivalent. — 1934, 25 percent; 1935, 27 per- 
cent; 1936, 30 percent; 1937, 33 percent; 1938, 35 percent. 

' Cork bark and waste, free of duty. 



144 CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exjyorts. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,018,628 
2, 060, 480 


$45,858 
6'J, 399 


$267, 926 


1937 


321,612 









6. Industrial concentration and tariff policy. — Specialization, econ- 
omies of large-scale production, and patents with regard to composi- 
tion cork account largely for the concentration. These products 
are made mostly to specification. A substantial reduction of the duty 
would probably have only a moderate effect on the import-domestic 
price situation. 

OTHER CORK PRODUCTS 



1. Description and use. — Other cork products include paper, 
marine goods, penholder grips, etc. 

2. Industrial concentration, 1937. — 



tile. 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


19 


22 


85 


$6, 082, Oil 


34 percent. 







3. Recent tarif history.^ — Act of 1913: 3 and 4 cents per pound; 25, 
30, and 35 percent ad valorem. Act of 1922: 6, 8, and 10 cents per 
pound; 25 and 30 percent ad valorem. Act of 1930: 1, 3, 6, 8, 10, 16 
cents, and $2 per pound; 30 and 45 percent ad valorem. Present 
duty: 1, 3, 6, 8, 10, 16 cents, and $2 per pound; 30 and 45 percent 
ad valorem. 

4. Average ad valorem, equivalent.- — 1934, 32 percent; 1935, 33 per- 
cent; 1936, 33 percent; 1937, 34 percent; 1938, 35 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$2, 769, 882 
6, 082, Oil 


$245. 176 


(') 


1937 - . 


2 $420, 450 







1 Not available. 

' Not strictly comparable. 

6. Industrial concentration and tarif policy. — Specialization and 
economies of large-scale production account for the concentration. 
Two of the largest companies produce a full line of cork products and 
own factories abroad. A substantial reduction of the duties would 
increase imports moderately and would lower prices, especially of cer- 
tain specialty items. 

3 Cork bark and waste, free of duty. 



CONCENTRATION OF EiOONOMIC POWER 
DISSOLVING PULPS 



145 



1. Description and use. — Dissolving pulps are grades of wood pulp 
used for conversion into synthetic textile yarns and filaments, trans- 
parent cellulose sheeting, and various compounds of cellulose such as 
plastics, lacquers, and finishes. 

2. Industrial concentration, 1937. — 



Total 
Total number of companies number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifi status in 1937: 
Free, ad valorem 
rate, or equivalent 


31 


.6 


1100 


$23, 871, 039 


Free. 







■ Estimated. 

3. Recent tarif history.— -Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: Free.*' 

4. Average ad valorem equimlent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$11,987,887 
23, 871, 039 


$6,593,678 


(') 




(') 







> Not available but substantial. 

6. Industrial concentration and tarif policy. — Specialization, experi- 
mentation, economies of large-scale production, and size of market 
relative to paper pulp accomit for the concentration. Imports are 
chiefly from a mill in eastern Canada. Dissolvmg pulps were bound 
on the free list m the second trade agreement with Canada. 

MATCHES (STRIKE ANYWHERE) 

1. Description and use. — Matches of the strike-anywhere type con- 
sist of the large, household size packed in large boxes and the smoker's 
size packed m small boxes. They may be ignited by striking on the 
side of the box or on other surfaces. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9. 


14 


82 


$18, 328, 406 


No imports. 







* Bound free, Canadian trade agreement, effective January 1, 1939. 



146 



CONCENTRATION OF ECONOMIC I'OWEE 



3. Recent tarif history. — Act of 1913: % cent per 1,000 (large size); 
3 cents per gross boxes (small size). Act of 1922: % cent per 1,000 
(large size); 8 cents per gross boxes (small size). Act of 1930: 2% 
cents per 1,000 (large size); 20 cents per gross boxes (small size). 
Present duty:* 2% cents per 1,000 (large size); 17)2 cents per gross 
boxes (small size). 

4. Average ad valorem equivalent. — No imports, 1934-38. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$19, 877, Oil 
18, 328, 406 


None 


(') 
(') 


1937 







> Not reported separately, but negligible. 

6. Industrial concentration and tarijf policy. — Economies of large- 
scale production, financial resources and integration, and patents on 
match-making machinery (one of the largest companies) account for 
the concentration. The principal producers own and operate timber 
lands for then* wood requirements. Tliis type of match is not pro- 
duced extensively abroad. Reduction or removal of the duties would 
probabl}^ have a very minor effect on the import-domestic price 
situation. 

MATCHES (STRIKE ON BOX) 

1. Description and use. — Matches of the strike-on-box type have 
plain, wooden stems about 2 inches in length and are usually ignited 
only by striking the match on a prepared surface of the box. They 
are packed in small boxes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


10 


•90 


$3, 357, 932 


100 percent. 





3. Recent tarijf history. — Act of 1913: 3 cents per gross boxes. Act 
of 1922: 8 cents per gross boxes. Act of 1930: 20 cents per gross 
boxes. Present duty: 17)^ cents per gross boxes.* 

4. Average ad valorem equivalent. — 1934, 94 percent; 1935, 116 per- 
cent; 1936, 100 percent; 1937, 100 percent; 1938, 84 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 '. 


$4,112,409 
3, 357. 932 


$384, 708 
281,996 


(') 


1937 


(') 







» Not reported separately, but small. 



•Swedish trade agreement, effective August 5, 1935. 



CON'CEN'TRATION OF BCONOMIC POWER 



147 



6. Industrial concentration and tarijf policy. — Economies of large- 
scale production, financial resources and integration, and patents on 
match-making machinery account for the concentration. About half 
of the imports are Swedish matches which are controlled by the 
Diamond Match Co. through an exclusive agency contract with the 
Swedish producers. The remamder are from Union of Soviet Socialist 
Repubhcs and Japan which are low-grade matches. A substantial 
reduction of the duty would increase imports moderately and would 
probably lower prices slightly. 



BOOK MATCHES 



1. Description and use. — Matches m books have paper stems and 
are attached in a paper cover. They are ignited by striking on a 
papered surface of the cover. Many are used as an advertising 
medium. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 - 


16 


87 


$9, 186, 145 









3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 40 percent ad valorem. 
Present duty: 40 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports 


1936...- - 


$6, 424, 752 
9, 186, 145 


$5, 821 
6,877 


(*) 


1937 


(}) 







' Principally book matches. 
' Not separately reported. 

6. Industrial concentration and tariff policy. — Side-line production 
by two of the large manufacturers of other matches, specialized pro- 
duction, and marketing facilities for selling book-match-cover ad- 
vertising account largely for the concentration. A substantial reduc- 
tion of the duty would have very little effect on the import-domestic 
price situation. 

WRAPPING PAPER 

1. Description and use. — Wrapping paper included here consists of 
bleached sulphite and bleached sulphate, machine glazed; and 
envelope manila. It is used for wrapping various types of merchan- 
dise, and in making bags, gummed tape, and envelopes. 



1^48 CONCENTRATION OF ECONOMIC I'OWKH 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1957: 
Free, ad valorem 
rate, or equivalent 


8 to 14 ' 


« 10-17 


178-82 


$6, 415, 620 


20 and 25 percent.' 







' Ransps cited indicate variation in concentration, companies, and plants for the above items. 
« Sulphate only. 



3. Recent tariff history. — Act of 1913: 25 percent. 
30 percent. Act of 1930: 30 percent. Present duty: 
20 percent, sulphate only.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Act of 1922: 
25 percent;^ 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$6. 415, 620 




(') 


1937 . 


(') 







1 Not available. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and size of market account for the 
concentration. A substantial reduction of the duty would probably 
increase imports moderately, especially of xnachine-glazed wrapping 
paper, and would lower prices slightly in coastal areas. 

KRAFT WRAPPING PAPER (MACHINE GLAZED) 

1. Description and use. — Machine-glazed kraft wrapping paper in- 
cludes wrapping paper which is glazed on special machines and sold 
without further fabrication. Bag paper is not included. 

2. Industrial concentration, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




7 


190 


$2,909,688 


20 percent. 







3. Recent tariff history.— Act of 1913: 30 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 20 percent.^ 

4. Average ad valorem equivalent. — None. 



I Swedish trade agreement, effective August 5, 1935. 
' Finnish trade agreement, effective November 2, 1936. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic production, imports, and exports. — 



149 



Year 


Domestic 
production 


Imports 


Exports 


1935 ---- 


0) 
$2,909,588 


$701, 502 


(0 


1937 - --- 


(') 







' Not separately reported. 
2 Not separately reported. 

6. Industrial concentration and tariff policy. — Specialization and 
size of market account for the concentration. Imports include more 
than kraft wrapping paper. A substantial reduction of the duty 
would probably increase imports moderately and would lower prices 
slightly. 

CONTAINER BOARD (OTHER THAN LINERS, CHIP OR STRAW) 

1. Description and use. — Container paperboard is a homogeneous 
or solid board of various thicknesses with a machine finish and is made 
of chestnut or manila fiber. It is used for corrugating or for making 
light containers and separators. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


12 


91 


$3, 423, 586 


10 percent. 





3. Recent tariff history.— Act of 1913: 25 percent. Act of 1922: 
10 percent. Act of 1930: 10 percent. Present duty: 10 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 423, 586 


$285,098 
573, 480 


(') 


1937 .. . _ - 


(') 







1 Not available. 

6. Industrial concentration and tariff policy. — Byproduct manu- 
facture accounts largely for the concentration. Large mills which 
remove tannin from chestnut wood use the spent wood for the manu- 
facture of chestnut fiberboard. Imports consist of a special type of 
board. Removal of the duty would not appreciably affect the 
import-price situation. 



150 



CONCENTRATION OF ECONOMIC POWER 
BINDER BOARD 



1, Description and use. — Binder board is a rigid single-ply Iieavy 
board commonly made from mixed papers and rags; it is used pri- 
marily for bookbinding, and also for automobile panels, buttons, toys, 
games, and similar items. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad %'alorem 
rate, or equivalent 


9 


13 


92 


$3, 620, 887 


10 percent. 







3. Recent tariff history. — Act of 1913: No appropriate tariff para- 
graph. Act of 1922: 10 percent. Act of 1930: 10 percent. Present 
duty: 10 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$4, 351, 752 
3. 620, 887 




(') 


1937 - - 


(') 







1 Not separately reported, but small. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and size of market account largi4y for 
the concentration. The few imports are probably specialties. 
Elimination of the duty would have no appreciable effect on the 
import-domestic price situation. 



LEATHERBOARD 

1. DescrijMon and use. — Leatherboard is a solid board made from 
scrap leather and may or may not contain manila, jute, or paper 
clippmgs. It is used for shoe counters and boxes and in the manu- 
facture of slippers. 

2. Industrial concentration, 1937. — 



'J'otal number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


10 


79 


$2,238,888 


10 percent. 







3. Recent tariff history. —Act of 1913: Free. Act of 1922: 10 
percent. Act of 1930: 10 percent. Present duty: 10 percent.^ 

4. Average ad valorem equivalent. — None. 

• Rate bound, Swedish trade agreement, effective August 5, 1935; Finnish trade agreement, effective 
November 2, 1936. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic ^production, imports, and exports. — 



151 



Year 


Domestic 
production 


Imports 


Exports 




$2, 156, fi78 
2,238,888 


S 


(2) 


1937 . 


(2) 







1 Not separately shown. 

2 Negligible. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and size of market account largely for 
the concentration. Substantial reduction of the duty would increase 
imports and would lower prices. 

CIGARETTE PAPER 

1. Description and use.- — Cigarette paper is a high-grade tissue paper 
made from linen rags, old netting, flaxtow, cotton rags, and waste. 
It is produced on bobbins for use in cigarette machines, and in flat 
sheets which are cut and assembled into folders and books for hand- 
rolled cigarettes. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



• Estimated. 

3. Recent tariff history. — Act of 1913: 50 percent ad valorem. 
Act of 1922: 60 percent ad valorem. Act of 1930: 60 percent ad 
valorem. Present duty: 45 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$1, 500, 000 
1,750,000 


$3, 290, 784 
38,74,925 


(') 


1937 


(») 







' Estimated. 

2 Not available, but substantial. 

6. Industrial concentration and tariff policy. — Specialization by a 
few manufacturers of fine tissue and the preference of the large manu- 
facturers of cigarettes for imported paper account largely for the con- 
centration. One large cigarette company owns a paper mill in France. 
The domestic product (bobbins and sheets) is used by the smaUer 
independent cigarette companies and is exported. Imports are 
chiefly bobbins. A large new domestic mill has increased domestic 
capacity to an estimated 75 percent of consumption. A substantial 
reduction of the duty would increase imports and would lower prices. 

' French trade agreement, efleotive June 15, 1936. 



257771— 41— No. 10- 



152 



CONCENTRATION OF ECONOMIC POWER 
VEGETABLE PARCHMENT 



1. Description and use. — Vegetable parchment is a waterproof and 
greaseproof sheet made by passing watcrleaf through sulfuric acid, 
neutralizing, washing, and pressing. It is used for fine printing, 
lampshades, decorative articles, and for wrapping certain foods which, 
because of moisture, would disintegrate other paper. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


31 


13 


1100 


1 $1,962. 140 









3. Recent tariff history.— Act of 1913: 35 percent ad valorem. 
Act of 1922: 3 cents per pound, plus 15 percent ad valorem. Act of 
1930: 3 cents per pound, plus 15 percent ad valorem. Present duty: 
2 cents per pound, plus 10 percent ad valorem. ^° 

4. Average ad valorem equivalent.— 19M, 25 percent; 1935, 21 percent; 
1936, 24 percent; 1937, 25 percent; 1938, 25 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 812, 675 
1, 962, 140 


$44, 565 
61,222 


(') 


i9;^7 - - - 


0) 







> Not available. 

6. Industrial concentration and tariff policy. — Specialization and 
size of market account largely for the concentration. A substantial 
reduction of the duty would increase imports and lower prices. 

BOOK PAPER (CONTAINING GROUND WOOD) 

1. Description and use. — Book paper is a machine-finished or super- 
calendared paper made of ground wood and chemical pulp in propor- 
tions different from that in standard newsprint. It is used in printing 
cheap books and magazines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




14 


96 


$15. 570, 367 


21 percent. 







»• Belgian trade agreement, effective May 1, 1935; Finnish trade tigreement, effective November '.' 1936. 



CONCENTRATION OF ECONOMIC POWER 



153 



3. Recent tariff history . — Act of 1913: 12 percent if valued above 2}^ 
cents per pound." Act of 1922: one-fourth cent per pound, plus 10 
percent. Act of 1930: one-fourth cent per pound, plus 10 percent. 
Present duty: one-fifth cent per pound, plus 5 percent.^^ 

4. Average ad valorem equivalent. — 1934, 22 percent; 1935, 22 
percent; 1936, 22 percent; 1937, 21 percent; 1938, 19 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$13, 691, 557 
15, 570, 367 


8 


(1) 


1937 


(0 





6. Industrial concentration and tariff policy. — Side-line production 
by large mills making other book-paper accounts for the concentra- 
tion, A substantial reduction of the duty would increase imports 
and would lower prices. 

" Value bracket changed to 5 cents per pound September 8, 1916, and to 8 rents per pound, April 23, 1920. 
12 Canadian trade agreement, effective January 1, 1939. 



GROUP D: CHEMICALS AND ALLIED PRODUCTS 

SOAPS 

1. Description and use. — Soaps include here practically all kinds: 
Bar, toilet and cleanser; washing powders, chips and flakes, packaged; 
granulated, powdered and sprayed; shaving, stick and powder; and 
bar laundry, yellow and white. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


200' 


1232 


180 


$271, 803, 486 


23 percent.' 





' Estimated. 

3. Recent tariff history. — Act of 1913: 5 to 30 percent ad valorem 
according to kind. Act of 1922: 15 to 30 percent ad valorem accord- 
ing to kind. Act of 1930: 15 to 30 percent ad valorem according to 
kind. Present duty: 10, 15, 20, and 30 percent ad valorem according 
to kind.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports' 


1935... 


$223, 808, 580 
271, 803, 486 


$1, 122, 036 
515, 004 




1937 


3, 200, 233 





' All soap items. 

6. Industrial concentration and tariff 2^oZ^cy.— Economies of large 
scale production, buying and marketing facilities, and establishment of 
brands account largely for the concentration. Imports consist mostly 
of castile and perfumed soaps, saddle soap, and bulk soap millings. 
Removal of the duty would increase imports moderately and would 
lower prices of certain kinds appreciably. 



CAFFEINE 

\. Description and use. — Caffeine is an alkaloid obtained by extrac- 
tion from tea, coft'ee, or mate leaves; or is produced synthetically from 
theobromine (an alkaloid in cocoa cake). It is a soft white crystalline 
product and is used principally in medicines and soft drinks. 

1 Toilet soap valued at more than 20 cents per pound, 20 percent; laiher soap, including saddle soap, n. s. 
ip. f., 10 percent. United Kinndom trade agreement, effective January 1, 1939. The excise ta.x on oils applies 
to soaps as a comi)ensatory duty. 

154 



CONCENTRATION OF ECONOMIC POWER 
2. Industrial concentration, 1937. — 



155 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 


6 


190 


$1, 344. 772 


209 percent.' 







' Estimated. 

3 For 1932. Imports are small and irregular. 

3. Receiit tariff history. — Act of 1913: $1 per pound of caffeine. 
Act of 1922: $1.50 per pound of caffeine. Act of 1930: $1.25 per pound 
of caffeine. Present duty: 90 cents per pound of caffeine.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$910, 956 
1, 344. 772 


None 
None 


a 









' Not available. 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion, some byproduct manufacture, and a few large buyers account 
largely for the concentration. A substantial reduction of the duty 
would probably increase imports and lower prices. 

AMYL ACETATE 

1. Description and use. — Amyl acetate is an ester used as a solvent 
for cellulose compounds, especially for lacquers, and in the production 
of flavoring extracts and perfumes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


» 


180 


$1, 188, 779 


26 percent. 







3. Recent tarif history. — Act of 1913: 5 cents per pound. Act of 
1922: 25 percent ad valorem. Act of 1930: 7 cents per pound. 
Present duty: 4 cents per pound.^ 

4. Average ad valorem equivalent. — 1934, 24 percent; 1935, 28 per- 
cent; 1936, 19 percent; 1937, 26 percent; 1938, 25 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$789, 293 
1, 188, 779 


$57 
63 


(0 




$45,013 







> Not available. 

' Netherlands trade agreement, effective February 1, 1936. 



156 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration and tariff policy. — Production by the 
large manufacturers of industrial chemicals and size of market account 
largely for the concentration. Removal of the duty would increase 
imports very moderately and would lower prices slightly. 



BUTYL ACETATE 



1. Description and use. — Butyl acetate is an ester used largely as a 
solvent for nitrocellulose, for other cellulose products, and for gums 
and resins. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


9 


87 


$5, 084, 985 


21 percent.' 





'June 18 to Dec. 31, 1930. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 7 cents per pound. 
Present duty: 7 cents per pound. 

4. Average ad valorem equivalent. — No imports during the period 
1931-38. 

5. Domestic ptroduction, imports, and exports. — 



Year 


Domestic • 
production 


Imports 


Exports 


1935 


$3, 686, 689 
5, 084, 985 


None 
None 


8 


1937 





' Production for sale and interplant transfer. 
» Not available. 



6. Industrial concentration and tariff policy. — Production by the 
large manufacturers of heavy mdustrial chemicals accounts for the 
concentration. The present duty is apparently prohibitive. A 
substantial reduction of the duty would probably increase imports 
moderately and would lower prices slightly. 



1. Description and use. — Acetone is used in the producton of cellu- 
lose acetate silks and plastics, for general solvent purposes, and as a 
raw material for certain chemicals, such as cldoroform and iodoform. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


9 


'85 


$2, 845, 436 









CONCENTPvATION OF BCONOMIC POWER 



157 



3. Recent tarif history. — Act of 1913 : 1 cent a pound. Act of 1922 : 
25 percent ad valorem. Act of 1930: 20 percent ad valorem. Present 
duty: 20 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 642, 149 
2, 845, 436 


$579 
58 


$296, 291 


1937 


616:333 







6. Industrial concentration and tarif policy. — Experimentation, 
technical skill, economies of large-scale production, and size of market 
account largely for the concentration. Removal of the duty would 
have little or no effect on the import-domestic price situation. 

BORAX (refined) 

1. Description and use. — Refined borax is a term applied to several 
forms of sodium tetraborate, principally (1) that contammg 10 mole- 
cules of water, (2) that contahiing 5 molecules of water, and (3) the 
anhydrous. Borax is used cliiefly in vitreous enamels, glass, glazes, 
adhesives, and sizing compounds; in water-softening compounds; and 
in pharmaceuticals. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 . . 


4 


100 


$3, 416, 184 


5 percent. 







3. Recent tarif history. — Act of 1913: One-eighth cent per pound. 
Act of 1922: One-eighth cent per pound. Act of 1930: One-eighth 
cent per pound. Present duty: One-eighth cent per pound. 

4. Average ad valorem equivalent. — 1934 to 1938, 5 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports « 


1935 


$3, 693, 129 
3, 416, 184 


$181 
176 


$1, 783, 292 


1937 . 


2, 593, 630 







6. Industrial concentration and tarif policy. ^ — A high degree of 
localization of borate ore and restricted ownership of the best deposits 
account for the concentration. Domestic production constitutes 
about 90 percent of the world output of crude borates. Imports 
consist of special grades. Removal of the duty would have no effect 
on the import-domestic price situation. 



158 



CONCENTRATION OF ECONOMIC POWER 
BORIC ACID 



1. Description and use. — Boric acid is a white crystalline powder 
used extensively in the ceramics industry, and to some extent in the 
pharmaceutical and cosmetic industries. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 .. 


3 


100 


$1, 545, 304 


11 percent. 





3. Recent tarif history. — Act of 1913 : Three-fourths cent per pound. 
Act of 1922: 1)2 cents per pound. Act of 1930: 1 cent per pound. 
Present duty: 1 cent per pound. 

4. Average ad valorem equivalent. — 1934, 15 percent; 1935, 16 per- 
cent; 1936, 12 percent; 1937, 11 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 245, 874 
1, 545, 304 


$1,884 


377, 279 


1937 


735, 208 







6. Industrial concentration and tariff policy. — Specialized production 
on a large scale by the few large producers of borates accounts for the 
concentration. Removal of the duty would have little effect on 
imports and would lower prices only slightly. 



CHROMIC ACID 

1. Description and use. — Cliromic acid is derived from cliromite ore. 
It is marketed in flakes and crystals and used principally in electro- 
plating. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


$1,260,477 


25 percent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: 25 percent ad valorem. Present duty: 25 percent ad 
valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$887, 842 
1,260,477 


$2, 198 
1,184 


(') 


1937 


(') 







« Not available. 



CONCENTRATION OF ECONOMIC POWER 



159 



6. Industrial concentration and tariff policy. — Specialized production 
and size of market account largely for the concentration. Removal 
of the duty would have a moderate effect on the import-domestic 
price situation. 

CITRIC ACID 

1. Description and use. — Citric acid is a highly refined food product 
consumed principally in medicines and foods. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




4 


100 


H 118, 513 









Act of 1913: 5 cents per pound. Act of 
Act of 1930: 17 cents per pound. Present 



3. Recent tariff history. - 
1922: 17 cents per pound, 
duty: 17 cents per pound. 

4. Average ad valorem equivalent. — 1934, 120 percent; 1935, 124 per 
cent; 1936, 57 percent; 1937, 75 percent; 1938, 94 percent. 

5. Domestic production, imports, and exports. — 



year 


Domestic 
production 


Imports 


Exports 




$2, 768. 377 
4, 118, 513 


$79 
197 


(') 


1937 


(') 







> Not separately reported. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, financial resources, and size of market probably ac- 
count for the concentration. A substantial reduction of the duty 
would increase imports slightly and would lower prices moderately. 

HYDROCHLORIC ACID 

1. Description and use. — Hydrocliloric acid is a basic chemical used 
widely in industry and for laboratory purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 




f 1 19 
1 Ul 


} ■» 


$3,987,974 


Free. 







1 From salt. 

' From chlorine, byproduct, and other. 

8 Combined. 



3. Recent tariff history. — Act of 1913: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 



Act of 1922: Free. 



160 CONCENTRATION OF ECONOMIC POWER 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 048. 000 
3,987,974 


$1, 651 
618 




1937 


123, 455 





6. Industrial concentration and tariff policy. — Production on a large 
scale by the principal chemical companies wliich make other products 
account for the concentration. 



NITRIC ACID 



1. Description and use. — Nitric acid is an inorganic acid used largely 
in organic synthesis and in the manufacture of drugs, dyes, explosives, 
and nitrocellulose. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 

by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937 
Free, ad valorem 
rate, or equivalent 


12 


« 


«■ 


$3, 052, 576 









3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . . 


$2, 142, 817 
3, 052, 576 


$10, 858 
24, 474 


(') 


1937 


(1) 







'Not separately reported but small. 

6. Industrial concentration and tariff p>olicy. — Production by a few 
large manufacturers of heavy chemicals accounts for the concentra- 
tion. The bulk of their output is not for sale, but is used by them 
for the manufacture of other products. 



OXALIC ACID 



1. Description and use. — Oxalic acid is used largely in bleaching 
various materials, in the dyeing and printing of textiles, as a scourmg 
agent, and as a rust and stain remover in laundries. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarilT status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 .— 


4 


100 


$1, 086, 878 


108 percent. 







CONCENTRATION OF ECONOMIC POWER 



161 



3. Becent tariff history. — Act of 1913: !){ cents per pound. Act of 
1922: 4 cents per poimd.^ Act of 1930: 6 cents per pound. Present 
duty: 6 cents per pound. 

4. Average ad valorem equivalent. — 1934, 116 percent; 1935, 118 per- 
cent; 1936, 119 percent; 1937, 108 percent. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$945, 215 
1,086,878 


$3,988 
12, 124 


8 


1937 -- 







6. Industrial concentration and tariff policy. — Some specialization, 
production by one or two of the large chemical companies, and size of 
market account for the concentration. A substantial reduction of the 
duty would increase imports greatly and would lower prices appre- 
ciably. 

PHOSPHORIC ACID 

1. Description and use. — The usual commercial grade of phos- 
phoric acid is a colorless sirupy liquid containing 50 to 85 percent acid. 
Chief uses are in the manufacture of triple superphosphate; in the 
manufacture of calcium, sodium, ammonium, magnesium, and 
aluminum phosphates; in soft drinks, and in rust-proofing processes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


10 


85 


$1, 785, 785 


3 percent. 







3. Becent tariff history.— kct of 1913: Free. Act of 1922: 2 cents 
per pound. Act of 1930: 2 cents per pound. Present duty: 2 cents 
per pound. 

4. Average ad valorem equivalent. — 1934, 9 percent; 1935, 12 per- 
cent; 1936, 3 percent; 1937, 3 percent; 1938, 3 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 333, 702 
1, 785, 785 


$1,062 
1,593 


(') 


1937 .. 


(') 







6. Industrial concentration and tariff policy. — Technical skill and 
economies of large-scale production seem to account for the concen- 
tration. Recent developments tend to place the production of this 
product on a tonnage basis. Elimination of the duty would probably 
increase imports very moderately and would lower prices slightly. 

' Increased to 6 cents per pound by Presidential proclamation, effective Jan. 28, 1925. 



162 



CONOENTRATION OF ECONOMIC POWER 



TARTARIC ACID 



1. Description and use. — Tartaric acid is used principally in pharma- 
ceuticals and in baldng powder. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


$2,484,625 


50 percent. 





3. Recent tariff history. — Act of 1913: 3K cents a pound. Act of 
1922: 6 cents a pound. Act of 1930: 8 cents a pound. Present duty: 
8 cents a pound. 

4. Average ad valorem equivalent. — 1934, 36 percent; 1935, 45 per- 
cent; 1936, 57 percent; 1937, 50 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,609,027 
2, 484, 625 


$2, 610 
52, 197 


(') 


1937 


(1) 





6. Industrial concentration and tariff policy. — Specialization and 
marketing facilities account largely for the concentration. Raw 
materials — argols, wine lees, and calcium tartrate — are imported. A 
substantial reduction of the duty would increase imports moderately 
and would lower prices. The domestic industry is localized in New 
York. 

BUTYL ALCOHOL 

1. Description and use. — Butyl alcohol is one of the more important 
high-boiling solvents used in the production of nitrocellulose lacquers 
and other products. It is produced by the fermentation of corn and 
molasses, and by synthesis from petroleum hydrocarbons. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


?. 


8 


190 


$5,866,688 


13 percent.' 





3. Recent tariff history. — Act of 1913: % cent per pound. Act of 
1922: 6 cents per pound. Act of 1930: 6 cents per pound. Present 
duty: 6 cents per pound. 

4. Average ad valorem equivalent. — 1934, 9 percent; 1935, 13 percent. 



CONCENTRATION OF EiOONOMIC POWER 

5. Domestic production, imports, and exports. — 



163 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2,601,983 
5,866,588 


$30 
None 


$205, 274 




288,312 







6. Industrial concentration and tariff policy. — Teclmical skill and 
research, specialization, economies of large-scale production, and size 
of market account largely for the concentration. Removal of the 
duty would have little effect on the import-domestic price situation. 



SYNTHETIC METHYL ALCOHOL 



1. Description and use. — Methyl alcohol is used in the production 
of formaldehyde, as an antifreeze in automobile radiators, in varnishes 
and lacquers, and as a general solvent. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


$8,619,238 


10 per cent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: 12 cents 
a gallon. Act of 1930: 18 cents a gallon. Present duty: 18 cents a 
gallon. 

4. Average ad valorem equivalent. — 1934, 5 percent; 1935, 13 per- 
cent; 1936, 6 percent; 1937, 10 percent; 1938, 5 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$3,611,382 
8, 619, 238 


$64 
120 


$300,040 


1937 


316,060 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production wliich involve related products, technical skill, and 
financial resources account for the concentration. Removal of the 
duty would have little or no effect on the import-domestic price 
situation. 

SODIUM BICARBONATE 

1. Description and use.— Sodium bicarbonate, or baldng soda, is a 
white powder and the mildest of the alkahes. It is an intermediate 
product in the manufacture of soda ash by the Solvay process. ^ Its 
chief uses are in: Modified sodas, baldng powders and self -rising 
flours, beverages, stock feed, textile and tanning operations. 



164 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


190 


$3, 606, 271 


Free. 







" Estimated. 

3. Recent tariff history. — Act of 1913: K cent per pound. Act of 
1922: % cent per pound. Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 658, 321 
3,606,271 


$852 
6,290 


$227, 396 


1937 


306, 830 







6. Industrial concentration and tariff policy. — Technical skill and 
economies of large-scale production account for the concentration. 



1. Description and use. — Bromine is a heavy, very corrosive liquid 
obtained from brine and ocean water. It is a raw material for ethylene 
dibromide which is used in "ethyl fluid," and for medicinal and 
industrial chemicals. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 . . 


12 


■" 


$5, 180, 177 


10 percent. 





3. Recent tariff history.— kct of 1913: Free. Act of 1922: 10 cents 
per pound. Act of 1930: 10 cents per pound. Present duty: 10 
cents per pound. 

4. Average ad valorem equivalent. — 1935, 10 percent; 1936, 7 percent; 
1937, 10 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$3, 438, 239 
5, ISO, 177 


$22 
25 


W 


1937 


W 







' Includes bromine content of bromine compounds. 
• Not available. 



CONCENTRATION OF ECONOMIC POWER 165 

6. Industrial concentration and tariff policy. — Teclmical skill, 
economies of large-scale production, and financial resources and 
integration account for the concentration. Imports consist of special 
grades. Removal of the duty would have a very moderate effect on 
the import-domestic price situation. 

CALCIUM CARBIDE 

1. Description and use. — Calcium carbide is a gray solid produced 
from coal and limestone in an electric furnace. Upon addition of 
water it forms acetylene. It is used as a raw material for synthetic 
organic chemicals, in rural and mine lighting, and in welding and 
cutting. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


6 


100 


$9, 842, 378 


39 percent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: 1 cent 
per pound. Act of 1930: 1 cent per pound. Present duty: 1 cent 
per pound. 

4. Average ad valorem equivalent. — 1934, 42 percent; 1935, 48 per- 
cent; 1936, 34 percent; 1937, 39 percent; 1938, 34 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$6, 234, 380 
9, 842, 378 


$9, 976 
38, 684 


$163,812 


1937 -- 


156,912 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production and shrinkage of the market (other illuminants and 
electric welding) account largely for the concentration. Carbide is a 
cheap, bulky commodity and products (e. g., synthetic acetic acid) 
made from it are shipped longer distances than the raw material. 
Canadian producers have low electric-power costs for its production. 
A substantial reduction of the duty would increase imports moderately 
and would lower prices in border areas, 

CARBON BISULFIDE 

1. Description and use. — Carbon bisulfide is a very volatile, highly 
inflammable liquid. It is used as a solvent, in fumigating, and to a 
small extent in medicine. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




10 


195 


$4, 753, 748 


25 percent. 







166 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 ... - - 


$3, 384, 851 
4, 753, 748 




$199, 555 


1937 -.-. 


260, 773 







I Probably nil or negligible. 



6. Industrial concentration and tariff policy. — Specialization and 
economics of large-scale production account for the concentration. 
Transportation of this commodity is hazardous and costly. Exports 
are mostly rail shipments to Canada and Mexico. Removal of the 
duty would have no effect on the import-domestic price situation. 



CARBON TETRACHLORIDE 



1. Description and use.— 
chemical used as a solvent, 
extinguishing fluid. 

2. Industrial concentration 



-Carbon tetrachloride is an industrial 
particularly in dry cleaning, and for fire- 

, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


190 


$3,067,611 


29 percent.' 







3. Recent tariff history. - 
1922: 2K cents per pound 
duty: 1 cent per pound. 

4. Average ad valorem equivalent. 
1934, 1935, 1937, or 1938). 

5. Domestic production, imports, and exports. — 



Act of 1913: 1 cent per pound. Act of 
Act of 1930: 1 cent per pound. Present 



1936, 29 percent (no imports in 



Year 


Domestic 
production i 


Imports 


Exports 




$2, 149, 877 
3,007,611 


None 

None 


(') 


1937 


(') 







1 Production for sale and intor-lant transfer. 
« Not available. 

6. Industrial concentration and tariff policy.— lunrge-scalc production 
associated with related products (e. g., chlorine), establishment of 
brands, and size of market account largely for the concentration. 
Removal of the duty would probably increase imports moderately and 
would lower prices slightly. 



CONCENTRATION OF ECONOMIC POWER 
SAL AMMONIAC 



167 



1. Description and use. — Sal ammoniac (ammonium chloride) is a 
colorless regular crystal or granular white powder. It is made by 
neutraUzing hydrochloric acid with ammonia. It is an essential in 
filling electric dry batteries and is important in galvanizing fluxes, 
textiles, and medicines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


9 


190 


$1,821,494 


52 percent. 





Act of 1913: Yi cents per pound. Act of 
Act of 1930: IK cents per pound. Present 



1 Estimated. 

3. Recent tariff history. - 
1922: 1)^ cents per pound, 
duty: IK cents per pound 

4. Average ad valorem equivalent. — 1934, 50 percent; 1935, 52 per 
cent; 1936, 53 percent; 1937, 52 percent; 1938, 53 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 583, 613 
1, 821, 494 


$187, 367 
203,073 


(0 


1937 





1 Not available. 

6. Industrial concentration and tariff policy. — Side-Hne production 
by manufacturers of hydrochloric acid and ammonia, byproduct 
manufacture (ammonia-soda process for making soda ash) account for 
the concentration. A substantial reduction of the duty would increase 
imports and would lower prices appreciably. 

REFINED GLYCERIN 

1. Description and use. — Glycerin includes here chemically pure 
glycerin which is used in tobacco, pharmaceuticals, and a number of 
other products, and the dynamite grade, which is used in dynamite, 
synthetic resins, and similar products, 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


34 


91 


$21,282,521 


6 percent. 





257771—41 — No. 10- 



168 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 2 cents per pound. Act of 
1922: 2 cents per pound. Act of 1930: 2 cents per pound. Present 
duty: V/is cents per pound.* 

4. Average ad valorem equivalent. — 1934, 21 percent; 1935, 17 per- 
cent; 1936, 8 percent; 1937, 6 percent; 1938, 17 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports' 


1935 


$12,973,082 
21, 282, 521 


$8, 277 $450, 248 


1937 


1,827,189 338.148 









I Not specifled as to crude or refined. 

6. Industrial concentration and tariff policy. — Byproduct manufac- 
ture on the part of large companies in the soap and fatty acid indus- 
tries accounts for the concentration. A substantial reduction of the 
duty would increase imports moderately and would lower prices 
slightly. 

POTASSIUM HYDROXIDE 

1. Description and use. — Potassium hj^droxide, or caustic potash, 
is a white crystalline product which is easily soluble in water. It is 
probably the most important potassium product in industrial use. 
Its principal uses are in soft soap, dyes, potash chemicals, and glass. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 


5 


190 


$1,437,509 


14 percent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: 1 cent 
per pound. Act of 1930: 1 cent per pound. Present duty: 1 cent 
per pound. 

4. Average ad valorem equivalent. — 1934, 16 percent; 1935, 15 per- 
cent; 1936, 15 percent; 1937, 14 percent; 1938, 12 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . -- 


$1, 260 031 
1,437,509 


$226, 165 
167,857 


(0 


1937 


(') 







> Not available. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production and size of market account largely for the concen- 
tration. Imports consist mostly of special grades of very high quality. 
A substantial reduction of the duty would increase imports moderately 
and would lower prices appreciably, especially in coastal areas. 

♦ French Trade Agreement, eflective June 1, 1936. 



CONCENTRATION OF ECONOMIC POWER IgQ 

SILVER NITRATE 

1. Description and use. — Silver nitrate is a colorless crystalline salt 
produced from silver and nitric acid, which is used principally in the 
manufacture of photographic films. It is also employed in silvering 
mirrors, in plating, and in medicinal uses. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


190 


$2,284,922 


25 percent. 





1 Estimated. 

3. Recent tariff history . — Act of 1913: 10 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,907,693 
2, 284, 922 


?! 


(') 


1937 - 











J Not available, but probably negligible. 

6. Industrial concentration and tariff policy. — Specialization and 
economies of large-scale production account largely for the concen- 
tration. Removal of the duty would probably have only a minor 
effect on the import-domestic price situation. 

AMMONIUM NITRATE 

1 . Description and use. — Ammonium nitrate is a white crystalline 
salt, made by neutralizing nitric acid with ammonia. Its chief indus- 
trial use is in explosives and as the raw material for nitrous oxide 
(laughing gas). It contains 35 percent nitrogen and is used to a 
considerable extent in fertilizer mixtures. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 


10 


'90 


$1,130,764 


90 percent. 







3. Recent tariff history.- 
per pound. Act of 1930: 
per pound. 



-Act of 1913: Free. Act of 1922: 1 cent 
1 cent per pound. Present duty: 1 cent 



170 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — 1934, 67 percent; 1935, 65 per- 
cent; 1936, 79 percent; 1937, 90 percent; 1938, 72 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$673, 704 
1, 130, 764 


$54, 148 
71,523 


S 


1937 







> Not available. 



6. Industrial concentration and tariff policy.— TToduction by the 
large manufacturers of explosives, mostly for their own use, accounts 
for the concentration. A substantial reduction of the duty would 
increase imports only moderately and would lower prices slightly. 



HYDROGEN PEROXIDE 

1. Description and use. — Commercial hydrogen peroxide is an aque- 
ous solution usually containing 30 percent or less of hydrogen per- 
oxide. The medicinal grade is generally of 3 percent strength. Hydro- 
gen peroxide is used principally as a bleaching agent for textiles and 
other products and as an antiseptic. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarill status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


190 


$3, 781, 229 


25 percent. 







> Estimated. 

3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3,154,593 
3,781,229 


None.. 

do 


$67, 505 


1937 


27,077 







6. Industrial concentration and tariff policy. — Specialization and 
economics of large-scale production account largely for the concen- 
tration. Imports have been negligible since the introduction of the 
electrolytic process of manufacture (about 1927). Removal of the 
duty would probably increase imports moderately and would lower 
prices slightly in eastern coastal areas. 



CONCENTRATION OF ECONOMIC POWER 
TRISODIUM PHOSPHATE 



171 



1. Description and use. — Trisodium phosphate is a white, crystalHne 
material which is soluble in water. It is used chiefly as a water 
softener and as a detergent in both household and industrial cleaning 
preparations. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff statiis in 3937: 
Free, ad valorem 
rate, or equivalent 


12.. 


13 


77 


$4, 235, 155 









3. Recent tariff history. — Act of 1913: ji cent per pound. Act of 
1922: ji cent per pound. Act of 1930: % cent per pound and Iji 
cents per pound (less than 45 percent water content). Present duty: 
ji cent per pound and 1 cent per pound (less than 45 percent water 
content).^ 

4. Average ad valorem equivalent. — 1934, 8 percent; 1935, 5 percent; 
1936, 8 percent; 1937, 15 percent; 1938, 10 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 ... .. . .. 


$3, 861, 952 
4, 235, 155 


$404 
745 


$197, 400 


1937 


219,716 







6. Industrial concentration and tariff policy. — Technical skill and 
economies of large-scale production account largely for the con- 
centration. This product is primarily an American development. 
Removal of the duty would probably affect only moderately the 
import-domestic price situation. 

SODIUM SILICATE (LIQUID AND SOLID) 

1. Description and use. — Sodium silicate, commonly known as 
water glass, comes into commerce as aqueous solutions and as vitreous 
plates, lumps, and powders. It is used in the paper industry as a 
stiffener and adhesive, in the soap and detergent industry and in 
binders, cements, road coatings, waterproofing compounds, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


25 


190 


$8,354,849 


16 percent. 







Belgian trade agreement, effective May 1, 1935. 



172 



CONCENTRATION OF ECONOMIC POWER 



Act of 1922: 
Present duty: 



3. Recent tariff history. — Act of 1913: Free 
per pound. Act of 1930: % cent per pound, 
per pound. 

4. Average ad valorem equivalent. — 1934, 17 percent; 1935 
cent; 193G, 20 percent; 1937, 16 percent; 1938, 17 percent. 

5. Domestic production, imports, and exports. — 



% cent 
% cent 

18 per- 



Year 


Domestic 
production 


Imports 


Exports 


1935— - - --- 


$7, 673, 591 
8, 354, 849 


$4,532 
3,320 


$203, 138 




241, 174 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration account largely 
for the concentration. This product is usually shipped in liquid form 
in tank cars and drums. Transportation charges are an important 
factor in its distribution. Imports consist mostly of special types. 
Removal of the duty would probably increase imports moderately 
and would lower prices in coastal areas. 



ALUMINUM SULPHATE 

1. Description and use. — Aluminum sulphate is a white powder or 
crystalline material. It is used chiefly in the manufacture of paper 
and in water purification. The two important grades are iron-free 
and commercial aluminum sulphate. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariC status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


22 


82 


$8,958,601 


22 percent. 







3. Recent tarijf history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: Three-eighths cent per pound (iron-free and commercial 
grades). Act of 1930: Three-eighths cent per pound (iron-free and 
commercial grades). Present duty: One-fifth cent per pound. ^ 

4. Average ad valorem equivalent. — 1934, 51 percent; 1935, 26 per- 
cent; 1936, 25 percent; 1937, 22 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - ---- 


$7, 748, 490 
8, 958, 601 


$16,715 
52, 970 


$685, 347 


1937 


679,214 







6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and strategic location of plants account 
largely for the concentration. Imports consist mostly of the iron- 
free product. Both grades are produced in the United States. Trans- 



• Belgian trade agreement, effective May 1, 1935. 



CONCENTRATION OF ECONOMIC POWER 



173 



portation charges are an important factor in its distribution. A 
substantial reduction of the duty would probably increase imports 
moderately and lower prices slightly in eastern coastal areas. 

COPPER SULPHATE 

1. Description and use. — Copper sulphate is a blue crystalline or 
powdered material, used chiefly as an insecticide or fungicide. It is 
also used in printmg inks, in electroplating, and in the manufacture 
of other copper salts. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 


15 


82 


$3,883,409 


20 percent.i 





1 Revenue Act of 1932. 

3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: 4 cents per pound of copper 
content.^ 

4. Average ad valorem equivalent. — 1935, 52 percent; 1936, 6 per- 
cent; 1937, 20 percent; 1938, 24 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2,002,099 
3,883,409 


$899 
1,455 


$142, 467 


1937- 


1, 212, 430 







6. Industrial concentration and tariff policy. — Side-line production 
by large copper refineries accounts largely for the concentration. 
They also use copper sulphate in the electrolytic refining of copper. 
Reduction or removal of the import excise tax would probably increase 
imports very moderately and lower prices slightly in coastal areas. 



MAGNESIUM SULPHATE (EPSOM SALTS) 

1. Description and use. — Magnesium sulphate is a colorless crystal- 
line salt occurring in two grades: United States Pharmacopoeia and 
technical. The United States Pharmacopoeia grade is used princi- 
pally as a medicine and as an ingredient in mineral water (citrate of 
magnesia); the technical grade is used principally in tanning sole 
leather. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 

by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4. 


4 


100 


$1, 216, 748 


109 percent. 









' Revenue Act of 1932. 



174 CONCENTRATION OF ECONOMIC POWER 

3. Recent tariff history. — Act of 1913: One-tenth cent per pound. 
Act of 1922: One-half cent per pound. Act of 1930: Three-fourths 
cent per pound. Present duty: Tliree-fourths cent per pound. 

4. Average ad valorem equivalent. — 1934, 126 percent; 1935, 124 
percent; 1936, 130 percent; 1937, 109 percent; 1938, 97 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 116. 533 
1, 216, 748 


$18, 495 
26, 771 


(') 


1937 


(1) 







« Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
(magnesium products primarily for industrial use) on a large scale 
and size of market account largely for the concentration. A sub- 
stantial reduction of the duty would increase imports greatly and 
would lower prices appreciably. 

ZINC SULPHATE 

1. Description and use. — Zinc sulphate is a white solid containing 
about 44 percent water of crystallization. It is used chiefly as a raw 
material for the manufacture of lithopone. Minor uses are as mor- 
dants, astringents, emetics, and preservatives. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or e<iui\ alent 


10 


10 


185 


$1, 143, 284 


30 percent. 







> Estimated. 

3. Recent tariff history. — Act of 1913: One-half cent per pound. 
Act of 1922: Thi-ee-fourths cent per pound. Act of 1930: Three- 
fourths cent per pound. Present duty: Three-fourths cent per 
pound. 

4. Average ad valorem equivalent. — 1934, 27 percent; 1935, 32 per- 
cent; 1936, 33 percent; 1937, 30 percent; 1938, 36 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$721, 025 
1, 143, 284 


$6, 381 
29,966 


(') 


1937 


(0 







' Not available. 



6. Industrial concentration and tariff ])olicy. — Specialization and 
side-line production by the manufacturers of lithopone partly for 
their own use account for the concentration. A substantial reduction 



CONCENTRATION OF ECONOMIC POWER 



175 



of the duty would increase imports moderately and would lower 
prices slightly. 

SODIUM SULPHIDE 

1. Description and use. — Commercial sodium sulphide includes 
amber-colored crystals and reddish-brown chips of 60 and 30 percent 
concentrations. It is used chiefly in the leather industry as a depila- 
tory, in the manufacture and application of sulphur dyes, in paper 
manufacture, and in photography. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 lareest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


78 


$1, 529, 592 


32 percent. 





3. Recent tariff history . — Act of 1913: One-fourth cent per pound. 
Act of 1922: Three-eighths and three-fourths cent per pound depend- 
ing on water content. Act of 1930: Three-eighths and three-fourths 
cent per pound depending on water content. Present duty: Three- 
eighths and three-fourths cent per pound depending on water content. 

4. Average ad valorem equivalent. — 1934, 30 percent; 1935, 32 per- 
cent; 1936, 29 percent; 1937, 32 percent; 1938, 32 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports 


1935 


$1,390,001 
1, 529, 592 


$68, 995 
154, 077 


(') 


1937 


(S) 







Mostly dutiable at three-fourths cent. 
Not i •■ ■ ■ 



6. Industrial concentration and tariff policy.- — Specialization, some 
byproduct manufacture, and size of market (appearance of sub- 
stitutes) account for the concentration. A substantial reduction of 
the duty would increase imports moderately and would lower prices 
especially in Atlantic coastal areas. 



CRUDE SULFUR 



1. Description and use. — Crude sulfur is a yellow amorphous solid. 
It is used primarily for the production of sulfuric acid which is a basic 
industrial chemical. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$44,300,000 Free. 



176 CONCENTRATION OF ECONOMIC POWER 

3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$29,300,000 
44, 300, 000 


$26,164 
7,724 


$7, 582, 293 


1937 


12, 155, 253 







6. Industrial concentration and tariff policy. — Ownership of sulfur 
deposits, economies of large-scale operations, and financial resources 
account for the concentration. 



REFINED SULFUR 



1 . Description and use. — Refined sulfur consists of a variety of forms 
which are used in medicine, for fumigating, for insecticides, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
bv 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


17 


190 


$2,333,467 


Free. 







3. Recent tariff history. — Act of 1913: Free. 
Act of 1930: Free. Present duty: Free.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports.— 



Act of 1922: Free. 



Year 


Domestic 
production 


Imports 


Exports 


1935 - -- 


$2, 054, 104 
2, 333, 467 


$30,975 


$418,532 


1937. 


509, 133 







6. Industrial concentration and tariff policy. — Refining by the few 
large producers of crude sulfur accounts for the concentration. The 
duty-free status of this product was bound in the trade agreement 
with the United Kingdom. 



ANHYDROUS AMMONIA 

1. Description and use. — Ammonia is a colorless gas at ordinai-y 
temperatures and pressure and contains 82.25 percent nitrogen. 
Liquid anhydrous ammonia is dry ammonia gas compressed to liquid 
form. It is the raw material in the manufacture of most nitrogen 
products and is used for refrigeration, treating water supplies, am- 
moniating super-phosphates, etc. 

' Duty free status bound in trade apreement with the United Kingdom, January I, 1939. 



CONCENTRATION OF BCONOMIC POWER 

2. Industrial concentration, 1937. — 



177 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


g 


12 


90 


$8,867,638 


21 percent. 





3. Recent tariff history. — Act of 1913: 2)^ cents per pound. Act of 
1922: 2)^ cents per pound. Act of 1930: 2}^ cents per pound. Present 
duty: 2K cents per pound. 

4. Average ad valorem equivalent. — Not available, except for 1937, 
21 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$5, 679, 399 
8.867,638 


None 

$242 


$206, 643 


1937 


251, 108 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production account largely for the concentration. This product 
is usually shipped in liquid form in high-pressure tank cars. Removal 
of the duty would probably increase very moderately imports of this 
product in cylinders and would lower slightly prices in coastal areas. 



ACETYLENE 

1. Description and use. — Acetylene is a compressed hydrocarbon 
gas sold in heavy cylinders. It is used in oxygen-acetylene blow- 
torches for cutting and welding metals. It is also used in rural and 
mine lighting. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


23 


130 


93 


$19, 166, 420 









3. Recent tariff history . — Act of 1913: 15 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$14, 747, 824 
19, 166, 420 


(•) 


(') 


1937 . 


(') 







Not available, negligible if any. 



178 



CONCENTIIATION OF ECONOMIC POWER 



6. Industrial concentration and tariff policy. — Economies of large- 
scale production account largely for the concentration. Transporta- 
tion charges on this product, as well as the heavy, returnable cylinders, 
practically eliminate it from the import or export trade. Removal of 
the duty would have little or no effect on the import-domestic price 
situation. 

METHYL CHLORIDE 

1. Description and use. — Methyl chloride is a gas compressed to a 
colorless liquid in metal cylinders. It is used in refrigeration, in 
organic synthesis, and as a local and general anesthetic in medicine. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 - 


4 


100 


$1, 043, 195 









3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$688, 927 
1, 043, 195 


8 


(') 


1937 


(') 







> Not available, but negligible. 

6. Industrial concentration and tariff policy. — Specialization, side- 
line production, and size of market account largely for the concen- 
tration. Some imports of the medicinal grade occur. Plants engaged 
in refrigeration or organic synthesis frequently make their own prod- 
uct. Removal of the duty would have little effect, except for the 
medicinal grades, on the import-domestic price situation. 



LITHOPONE 

1. Description and use. — Lithopone is a white pigment consisting of 
a mixture of barium sulfate and zinc sulfide. It is used in paints, 
floor coverings, textiles, rubber, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


13 


95 


$13, 760, 312 


67 and 41 percent. 







CONCENTRATION OP ECONOMIC POWER 



179 



3. Recent tariff history.— K(^i of 1913: 15 percent ad valorem. Act 
of 1922: 1% cents per pound. Act of 1930: 1% cents and 1% cents 
per pound plus 15 percent, depending on zinc content. Present duty: 
V/i cents ^ and 1% cents per pound plus 15 percent. 

4. Average ad valorem equivalent. — 1934, 65 percent (low strength), 
40 percent (high strength); 1935, 65 percent (low strength), 39 percent 
(high strength); 1936, 55 percent (low strength), 41 percent (high 
strength); 1937, 57 percent (low strength), 41 percent (high strength); 
1938, 59 percent (low strength), 41 percent (high strength). 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports I 


Exports 


1935 - 


$14,297,118 
13, 760, 312 


$256, 731 
302, 417 


$221,611 
231, 622 


1937 





' Less than 10 percent consists of lithopone containing more than 30 percent zinc sulfide. 

6. Industrial concentration and tariff policy. — Specialization, side- 
line production, and shrinkage of the market (appearance of substitute 
pigment) account largely for the concentration. A substantial reduc- 
tion of the duty would increase imports moderately and would lower, 
especially in eastern coastal areas, prices slightly. 

LITHARGE 



1. Description and use.- — Litharge is a monoxide of lead (about 93 
percent lead). Its principal uses are in the manufacture of storage 
batteries and insecticides. Secondary uses are in oil refining, in the 
manufacture of ceramics, chrome pigments, rubber, varnish, and 
Imoleum. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 


5 


.95 


$12, 102, 184 


31 percent. 





1 Estimated. 

3. Recent tariff history.— Act of 1913: 25 percent. Act of 1922: 2K 
cents a pound. Act of 1930: 2K cents a pound. Present duty: 2^ 
cents a pound. ^° 

4. Average ad valorem equivalent. — 1934, 48 percent; 1936, 49 percent; 
1937, 31 percent; 1938, 43 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$7, 733, 737 
12, 102, 184 




(') 


1937 


$31 


(1) 







• Not separately recorded, but small. 



« Zinc sulfide content less than 30 percent. Trade agreement with Netherlands, effective February 1. 
1936. 
10 Trade agreement with the United Kingdom, effective January 1, 1939. 



180 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration and tariff policy. — Specialization in the 
production of metallic lead and its products, economies of large-scale 
production, and financial resources and integration account largely 
for the concentration. A substantial reduction of the duty would 
probably increase imports moderately, and would lower prices slightly. 



RED LEAD (AND OTHER LEAD OXIDES) 

1. Description and use. — Red lead is a tetraoxide of lead (about 91 
percent lead) made by heating litharge in a coloring oven. It is used 



principally in the manufacture of storage batteries, 
paints, ceramics, etc. 

2. Industrial concentration, 1937. — 



It is also used in 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$6. 751, 961 27 percent. 



3. Recent tariff history . — Act of 1913: 25 percent ad valorem. Act 
of 1922: 2% cents a pound. Act of 1930: 2% cents a pound. Present 
duty: 2}^ cents a pound. ^' 

4. Average ad valorem equivalent. — 1935, 55 percent; 1936, 43 percent; 
1937, 27 percent; 1938, 35 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports' 


1935 


$3, 986, 422 
6, 751, 961 


$109 
285 


$98, 727 


1937 


158, 923 







6. Industrial concentration and tariff policy.- — Specialization in the 
production of metallic lead and its products, economies of large-scale 
production, and financial resources and integration account for the 
concentration. A substantial reduction of the duty would probably 
increase imports very moderately and would lower prices slightly. 



ZINC OXIDES 

1. Description and use. — Zinc oxide is a white insoluble pigment 
used in paints and in compounding rubber, 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18- 


24 


87 


$15, 316, 173 









1' Trade agreement with the United Kingdom, January 1, 1939. 



CONCENTRATION OP BCONOMIC POWER 



181 



3. Recent tariff history. — Act of 1913: 10 and 25 percent ad valorem, 
depending on lead content (dry powder). Act of 1922: 1% cents per 
pound (dry powder). Act of 1930: 1% cents per pound (dry powder). 
Present duty: 1% cents per pound (dry powder). 

4. Average ad valorem equivalent.— 1^2,4:, 30 percent; 1935, 35 per- 
cent; 1936, 32 percent; 1937, 30 percent; 1938, 33 percent. 

5. Domestic -production, imports, and exports. — 



Year 


Domestic 
production 


Imports • 


Exports 


1935 


$13, 071, 090 
15, 316, 173 


$194, 721 
80,282 


$170. 757 
378, 332 







> Dry powder. 

6. Industrial concentration and tariff ^jo^ic?/.— Specialization in the 
production of metallic zinc and its products and side-line production 
by a few large paint companies, partly for their own use, account for 
the concentration. Slight differences in grade and composition explain 
partly the movements of imports and exports. A substantial reduc- 
tion of the duty would increase imports moderately and would lower 
prices slightly. 

WHITE LEAD 

1, Description and use. — White lead is a basic carbonate of lead 
(about 80 percent lead). It is sold as a dry powder and as a paste 
mixed with linseed oil (8 to 15 percent). It is used principally as a 
pigment in paints. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


106 


117 


88 


$23, 602, 269 


26 percent. 







3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 2)^ cents per pound. Act of 1930: 2}^ cents per pound. 
Present duty: 2Xo cents per pound. ^^ 

4. Average ad valorem equivalent. — 1934, 27 percent; 1935, 24 per- 
cent; 1936, 27 percent; 1937, 26 percent; 1938, 23 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$18,808,690 
23, 602, 269 


$1, 153 
6,677 


$277, 583 


1937 


207, 381 







6. Industrial concentration and tariff policy. — Specialization in the 
production of lead products by large corporations and economies of 
large-scale operations and side-line production by paint companies, 



12 Belgian trade agreement, effective May 1, 1935. 



182 CONCENTRATION OF ECONOMIC POWER 

partly for their own use, account largely for the concentration. A 
substantial reduction of the duty would increase imports very mod- 
erately and would lower prices slightly. 



1. Description and use. — \Vhiting is a finely ground chalk. It is 
used as a pigment in calcimine, a filler in rubber goods, in the man- 
ufacture of putty, and as a pigment or filler in a variety of manufac- 
tured products. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 - 


14 


75 


$866, 736 









3. Recent tariff history. — Act of 1913: Ko cent per pound. Act of 
1922: 25 percent ad valorem. Act of 1930: jU cent per pound. 
Present duty: Ko cent per pound. ^^ 

4. Average ad valorem equivalent. — 1934, 78 percent; 1935, 75 per- 
cent; 1936, 72 percent; 1937, 74 percent; 1938, 74 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$833,366 
866, 736 


$25,392 
44, 168 


(') 


1937 - 


(') 







1 Negligible. 

6. Industrial concentration and tariff policy. — Specialization and size 
of market account largely for the concentration. Crude chalk, the 
raw material, which does not occur commercially in the United States, 
is imported free of duty. Removal of the duty would increase imports 
greatly and would lower prices appreciably. 

COAL-TAR RESINS (FROM PHENOL AND/oR CRESOL) 

1. Description and use. — Phenolic resins are plastics made by the 
condensation of formaldehyde with phenol or other tar acids. Most 
important among the synthetic resins, they are used to mold, cast, and 
laminate a large variety of products. Some forms are also used in 
varnishes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


19 


20 


79 


$16. 762, 554 


54 percent. 







i> Belgian trade agreement, effective May 1, 1935. 



CONCENTRATION OF ECONOMIC POWER 



183 



3. Recent tariff history . — Act of 1913: 15 percent ad valorem. Act 
of 1922: 7 cents per pound plus 45 percent ad valorem.'* Act of 
1930: 7 cents per pound plus 45 percent ad valorem. Present duty: 
7 cents per pound plus 45 percent ad valorem.'^ 

4. Average ad valorem equivalent. — 1934, 58 percent; 1935, 66 per- 
cent; 1936, 55 percent; 1937, 54 percent; 1938, 62 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports' 


Exports 


lOS."; 


$9, 929. 904 
16, 762. 554 


$6,075 
14,278 


s 


1937 





1 Includes all types coal-tar resins. 
' Not available. 

6. Industrial concentration and tariff policy. — Experimental develop- 
ment and patents during the early stages account for the concentra- 
tion. Patents and licensing agreements have restricted imports. A 
substantial reduction of the duty would increase imports moderately 
and would lower prices slightly. 

COAL-TAR RESINS (PHTHALIC ANHYDRIDE) 

1. Description and use. — Phthalic anhydride resins are plastics 
resulting from the condensation of glycerine and phthalic anhydride. 
They are used primarily in paints, enamels, and varnishes. 

2. Industrial concentration, 1937. — • 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 1 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$4, 530, 695 54 percent. 



' Estimated. Data here taken from the Census of Manufacturers. According to the report of the U. S. 
Tariff Commission, Dyes and Other Surtthetic Organic Chemicals, 19S7, 34 companies produced 58,450,032 
pounds of phthalic anhydride resins, and 25 companies sold 32,503,307 pounds valued at .$6,455,511. 4 com- 
panies produced 76 percent of total output. 

3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 7 cents per pound plus 45 percent ad valorem.'* Act of 
1930: 7 cents per pound plus 45 percent ad valorem. Present duty: 
7 cents per pound plus 45 percent ad valorem. 

4. Average ad valorem equivalent. — 1934, 58 percent; 1935, 66 per- 
cent; 1936, 55 percent; 1937, 54 percent; 1938, 62 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 946, 897 
4, 530, 695 


(0 




1937 . . - 







Not available. 

n Ad valorem rate 60 percent for first 2 years of the act, of 1922. 
I' Ad valorem rate is based on the American selling price. 

257771— 41— No. 10 1.3 



184 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration a,nd fari^ 2'o^ic^.— Experimental develop- 
ment of this product by two large corporations, one of which is also a 
large manufacturer of paint products, and patents account for the 
present concentration. A basic patent was invalidated in 1936. 
Licensing agreements and patents have restricted imports. A sub- 
stantial reduction of the duty would increase imports moderately and 
would lower prices appreciably. 

RESIDUUM OK TAR 

1 . Description and use. — Still residues from petroleum refining should 
be sharply distinguished from pitch of tar obtained from coal tar. 
Tariff classification most nearly corresponding to petroleum tar or 
road oil is petroleum asphalt. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


10 


180 


1 $853. 393 


Free. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: Free under paragraph 1733 if 
solid but subject to excise tax in liquid form. Petroleum asphalt 
likewise free under paragraph 1710 but subject to excise tax in liquid 
form. 

4. Average ad valorem equivaleiit.^lS one. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . 


$1, 696, 440 
853, 393 


$210 
4,694 


$895, 022 


1937 - . . - . 


284,234 







6. Industrial concentration and tariff policy. — Specialized pi-oduction 
by certain oil refineries. Most of it is burned where made. 



CARTRIDGES 



1. Description and use. — Cartridges (rifle, revolver, pistol), loaded 
paper shells, blanks, etc., are the main items included. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
comjianics 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


31 - 


1 5 


1 100 


$29, 738, 639 









CONCENTRATION OF ECONOMIC POWER 



185 



3. Recent tariff history.— Act of 1913: 15 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports" 


1935 


$21,026,174 
29, 738, 639 


$14. 343 
22,849 


$1, 171, 570 
2,012,861 


1937 





I Includes only loaded metallic and shot cartridges. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and variations in size of market 
account largely for the concentration. Imports consist of expensive 
cartridges (about one-half) for foreign-made guns and of cheap car- 
tridges for certain sizes of American-made guns. A substantial 
reduction of the duty would increase imports moderately, especially 
the cheap cartridges, and would lower prices of competing types, 
slightly. 



GROUP E: RUBBER AND LEATHER PRODUCTS 

TIRES AND INNER TUBES (INCLUDES SOLID TIRES) 

1. Description and use. — Tires and inner tubes include both solid 
and pneumatic tires for automobiles, trucks, busses, trailers, air- 
planes, motorcycles, bicycles, tractors, and farm implements. 

2. Industrial concentration , 1937. — 



Total number of companies 


Total 
number 
(li plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5to26> - 


15-36 


» 75-90 


$478,870,897 









' Ranges cited indicate variations in companies, plants, and concentration for the types indicated. 
2 Estimated. 

3. Recent tariff history. — Act of 1913: 10 to 25 percent ad valorem 
depending on classification. Act of 1922: 10 to 30 percent ad va- 
lorem depending on classification. Act of 1930; 10 to 30 percent ad 
valorem depending on classification. Present duty: 10 to 30 percent 
ad valorem depending on classification. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$374, 264, 436 
478, 870, 897 


$75,252 
114, 944 


$10,878,052 


1937 _ 


14, 328, 066 







6. Industrial concentration and tariff policy. — Specialized production 
on a large scale over a period of years, financial resources and integra- 
tion, and establisJiment of brands account largely for the concentra- 
tion. Removal of the duty would have little or no effect on the 
import-domestic price situation. 

GUTTA-PERCHA PRODUCTS 

1. Description and use. — Gutta-percha products include tissue, 
beer tubing, insulation for submarine cables, golf-ball covers, and 
dental goods. The tissue is used as an adhesive in the manufacture 
of bottle caps, hats, dresses, shoes, pocketbooks, and cases for eye- 
glasses. 
186 



CONCENTRATION OF BCONOMIC POWER 
2. Industrial concentration, 19S7. — 



187 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


•85 


$3,453,443 


25 percent. 





3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad 
valorem. Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$3,453,443 


$40, 271 
42,939 


$310,362 


1937 





' Not separately reported. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and contractual selling account largely 
for the concentration. Imports consist mainly of tissue and beer 
tubing. A substantial reduction of the duty would increase imports 
moderately and would lower prices slightly. 

RUBBER THREAD 

1. Description and use. — Rubber thread is used in the manufacture 
of elastic yarn, elastic webbing, and golf balls. Elastic yarn which is 
made by covering rubber tliread with cotton, silk, or wool is used for 
the manufacture of elastic fabrics. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production • 


Tariff status in '1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


.90 


$3,475,477 


25 percent. 





3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad 
valorem. Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



jgg CONCENTRATION OF EiCONOMIC POWER 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports Exports 


1935 


$2,550,833 
3, 475, 477 


Negligible— 
do 


$713, 978 


1037 - 


366,074 







6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and patents (especially the extrusion 
process) account for the concentration The principal producers 
belong to an international cartel which, at least in Europe, fixes prices 
and allocates markets. Removal of the duty would probably increase 
imports only moderately and would lower prices slightly. 

RUBBER NIPPLES AND PACIFIERS 

1. Description and use. — Rubber nipples are used on nursing bottles. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 


18 


»80 


$1,209,716 









3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1035 


$1, 196. 219 
1, 209, 716 


K666 
8.701 


(') 


1937.... — 


(0 







Not separately reported but much larger than imports. 



6. Industrial concentration and tariff^ policy. — Some specialization, 
side-line production by large manufacturers of drug sundries, estab- 
lishment of brands, and patents account for the concentration. Ex- 
ports exceed imports. A substantial reduction of the duty would 
have only a moderate effect on the import-domestic price situation. 



CONCENTRATION OF ECONOMIC POWER 
RUBBER COMBS 



189 



1. Description and use. — Rubber combs constitute a major portion 
of the total output of combs. They are of many sizes and prices. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


$2,261,676 


65 percent. 





3. Recent tari^ history. — Act of 1913: 10 percent ad valorem. Act 
of 1922: 35 percent ad valorem. Act of 1930: 1 or 2 cents each plus 
25 or 35 percent depending on value. Present duty: 1 or 2 cents each 
plus 25 or 35 percent depending on value. 

4. Average ad valorem equivalent. — 1934, 67 percent; 1935, 67 per- 
cent; 1936, 67 percent; 1937, 65 percent; 1938, 63 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 261, 676 


$46. 008 
58, 069 


0) 


1937 





Not available. 



6. Industrial concentration and tari;ff policy. — Specialization, econ- 
omies of large-scale production, and size of market account largely 
for the concentration. A substantial reduction of the duty would 
increase imports greatly and would lower prices appreciably. 



RUBBER CEMENT 

1. Description and use. — Rubber cement is made from crude rubber 
and latex and a solvent such as gasoline. It is used in the manufac- 
ture of dipped rubber goods and as an adhesive in the rubber, leather, 
and textile mdustries. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 


20 


'75 


$8, 931, 113 









190 CONCENTRATION OF ECONOMIC POWER 

3. Recent tariff history. — Act of 1913: 10 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 142, 605 
8, 931, 113 


ti 


('^ 


1937 


$332, 959 







> Negligible. 



Not available. 



6. Industrial concentration and tariff p)olicy. — Specialization, econo- 
mies of large-scale production and contractual selling probably ac- 
count for the concentration. Reduction or removal of the duty 
would have no appreciable effect on the import-domestic price 
situation. 

RUBBER BOOTS AND SHOES 

1. Description and use. — Rubber boots and shoes include rubber- 
soled canvas shoes, rubber boots, lumbermen's pacs, arctics, gaiters, 
and rubbers. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 to 16> . . 


1 11-17 


■81-88 


$68,269,258 


55 percent.' 







» Ranges cited indicate variation in companies, plants, and concentration for the above types. 
» Estimated. 



3. Recent tariff history. — Act of 1913: Various, depending on com- 
ponent material of chief value. Act of 1922: 25 to 35 percent ad 
valorem (foreign value). Act of 1930: 25 to 35 percent ad valorem 
(foreign value). Present duty 25 to 35 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports 


1936 


$48, 261, 613 
58, 269, 258 


$249, 269 
234,808 


$506, 276 


1937 


647, 397 







« Values as declared by importers. 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion, establishment of brands, and consolidations account for the 
concentration. Because of the duty, about 80 percent of the imports 
are not comparable with domestic products. Removal of the do- 
mestic valuation provision and a substantial reduction of the duty 
would increase imports greatly and would lower prices appreciably. 

I Presidential proclamation, effective March 3, 1933 (sec. 336, Tariff Act of 1930). The basis of valuation 
was changed from foreign value to domestic value (selling price) which in cflcct doubled the duty. It 
applies to imports which are like or similar to domestic rubber footwear. 



CONCENTRATION OF EiCONOMIC POWER 
GOAT AND KID LINING LEATHER 



191 



1. Description and use. — Goat and kid lining leather is produced 
from low grade and inferior quality goat and kid skins. The leather 
is used chiefly for lining women's medium and high-priced shoes, 
handbags, and fancy leather goods. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


8 


>90 


$4, 755, 468 


10 percent. 





3. Recent tarif history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: 10 percent ad valorem. Present duty: 10 percent ad 
valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2,353,468 
4,755,468 


$91, 820 


$76, 906 


1937 . . . 





' Not available. 

6. Industrial concentration and tarirff policy. — Production of goat 
and kid lining leather in conjunction with the production of goat and 
kid upper leather by large manufacturers accounts largely for the 
concentration. Imports consist mostly of better quality than the 
domestic product. Removal of the duty would increase imports 
moderately and would lower prices slightly. 



1. Description and use. — Skivers are leather produced from the 
grain-splits of sheepskins, usually vegetable tanned. They are used 
for a great variety of purposes including sweat-bands for hats, bag 
linings, bookbinding, pocketbooks, and fancy leather goods. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 . 


13 


78 


$2,303,815 


25 percent. 





3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: 25 percent ad valorem. Present duty: 20 percent ad 
valorem.^ 



' United KJnedom trade aereement. eflective January 1, 



192 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$1,907,803 
2, 303, 815 


$25. 559 (') 


1937 


34. 368 (0 









» Not available. 

6. Industrial concentration and tariff policy.- — Production of sldvers 
in conjunction with the production of chamois and other types of 
sheep and lamb leather by large manufacturers, and the size of market 
probably account for the concentration. A substantial reduction of 
the duty would result in increased imports and would probably lower 
prices. 



GROUP F: STONE, CLAY, AND GLASS PRODUCTS 

ASBESTOS SHINGLES AND LUMBER 

1. Description and use. — Asbestos shingles, "lumber," and other 
asbestos cement products are composed of about 15 percent asbestos 
and 85 percent Portland cement. The shingles are used for roofing 
and siding, and the "lumber" for sidmg and partitions. Other im- 
portant products include slabs used as panels for industrial control 
instruments and as barriers between circuit breakers, and "tile" 
used as wainscoating in buildings. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$18, 228, 544 



61 • and 61 • percent. 



1 Not decorated. 
« Decorated. 

3. Recent tariff history. — Act of 1913: 10 percent. Act of 1922: 
25 percent. Act of 1930: Three-fourths cent per pound, if not 
decorated; 1 cent per pound, decorated. Present duty: Six-tenths cent 
per pound, not decorated; three-fourths cent per pound, decorated.* 

4. Average ad valorem equivalent. — 1934, 58 percent (not decorated), 
75 percent (decorated) ; 1936, 56 percent (not decorated), 62 percent 
(decorated); 1937, 51 percent (not decorated), 61 percent (decorated); 
1938, 52 percent (not decorated), 62 percent (decorated). 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports' 


1935 


$8, 152, 264 
18. 228, 544 


$3, 942 
20,085 


$106,678 


1937 


166,312 







« Asbestos roofing. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, ownership of asbestos deposits, restricted market- 
ing areas, and competition from other products account for the con- 
centration. Imports are mostly shingles, thinner and less varied lq 
color than the domestic product. A substantial reduction in the duty 
would probably increase imports and would lower prices appreciably 
in coastal areas. The main domestic market is in the South Atlantic 
and Midwestern States. The principal producing plants are in New 
Jersey, Alabama, Louisiana, and Missouri. 



1 Belgian trade agreement, effective May 1, : 



193 



194 



CONCENTRATION OF ECONOMIC POWER 
ASBESTOS ROVING, YARN, AND CLOTH 



1 . Description and use. — Asbestos roving is used in the production of 
yarn and as insulation for electric-heater cords. Asbestos fiber of 
spun into yarn and woven into cloth in a manner very similar to the 
spinning and weaving of cotton or wool. 

2. Industrixd concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 


16 


'76-90 


$6,457,280 









' Range indicates variation in concentration for the above types. 

3. Recent tariff history. — Act of 1913: 10 or 20 percent. Act of 
1922: 25 or 30 percent. Act of 1930: 40 percent. Present duty: 
20 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports • 


1Q35 


$3, 844, 593 
6,457.280 


$13,327 

27,450 


(') 


1937 


$43,907 







' Yarn only. 

' Textiles and yam. 

' Not reported separately. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production financial resources, and limited market largely ac- 
count for the concentration. Imports in many instances are not 
strictly competitive. Effect of the duty is somewhat obscured be- 
cause of interownership of certain large British and American plants 
and because much of the production of these items is an intermediate 
step in producing more advanced products in the same plants. The 
recent reduction of the duty may increase imports moderately and 
lower prices shghtly on certain products. 



ASBESTOS PAPER 

1. Description and use. — Asbestos paper may be either flat or corru- 
gated. One of the principal uses of both kinds is in the manufacture 
of air-cell pipe coverings which consist of alternate layers of corru- 
gated and flat sheets held firmly together. It is also used as an insu- 
lating cover for certain electric wire. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 


15 


80 


$3,395,200 


25 percent. 







' United Kingdom trade agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 



195 



3. Recent tariff history. — Act of 1913: 10 percent. Act of 1922: 
25 percent. Act of 1930: 25 percent. Present duty: 25 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 564, 336 
3, 395, 200 


$113 
129 


$130, 578 
183.610 


1937 - 





6. Industrial concentration and tariff policy. — Economies of large- 
scale production and limited market account largely for the con- 
centration. Reduction or removal of the duty would probably have 
no appreciable effect on the import-domestic price situation. 

ASBESTOS INSULATION 

1. Description and use. — Im.portaut asbestos msulations include pipe 
and boiler coverings and molded blocks. Much pipe covering is 
made of corrugated and flat asbestos paper; molded blocks are used 
to cover large areas where heavy insulation is needed. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


71 toll'. 


19-2 13 


1 85-1 93 


$3,948,545 


25 percent. 





' Pipe and boiler coverings. 
' Molded blocks. 

3. Recent tariff history. — Act of 1913: 10 percent. Act of 1922': 
25 percent. Act of 1930: 25 percent. Present duty: 25 percent. 

4. Average ad valorem equivalent . — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


' $3, 558, 342 
3, 948, 545 


8 


(') 


1937 


{') 







No comparable data available. 
Does not include molded blocks. 



6. Industrial concentration and tariff policy. — Specialization and 
limited m.arket account for the concentration. Exports probably 
exceed Imports. A substantial reduction of the duty would have 
little or no effect on the import-domestic price situation. 



196 



CONCENTRATION OF ECONOMIC POWER 
ASBESTOS PACKING 



1. Description and use. — The asbestos packing includes here com- 
pressed sheet and flat fabrics. Asbestos because of its heat-resistant 
quahty and its smoothness is especially useful in the manufacture of a 
wide variety of packings for engines and other mechanical equipment. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7' to 10 '.... 


>8-*ll 


» 85- « 90 


$1, 430, 296 









' Compressed sheet. 



1922 



3. Recent tarijff history. — Act of 1913: 10 percent. Act of 
25 percent. Act of 1930: 40 percent. Present duty; 20 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$909, 732 
1,430,296 


(0 


(0 


1937 . . 


0) 







' Not reported separately, but small. 

6. Industrial concentration and tarijff policy. — Specialization and 
limited market account for the concentration. The recent reduction 
of the duty may increase imports moderately and lower prices. 



MOLDED ASBESTOS BRAKE LININGS AND CLUTCH FACINGS 

1, Description and use. — Molded linings and facings are used in the 
automotive industry. They are more recently developed and less 
expensive than the woven type. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




» 10- ' 18 


1 91- s 75 


$11,446,241 


25 percent. 







' Clutch facings. 

3. Recent tariff history. - 
25 percent. Acl of 1930: 25 percent 

4. Average ad valorem equivalent 



' Brake linings. 



Act of 1913: 10 percent. Act of 1922 
Present duty: 20 percent.^ 
None. 



• United Kingdom Trade Agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



197 



Year 


Domestic 
production 


Imports 


Exports 


1935 .- - 


' $4, 670, 326 
11,446,241 




'$651,338 
815,074 


1937 





Brake linings only. 



' Negligible. 



6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and contractual relations with the 
automotive industry account for the concentration. These products 
are made according to rigid specifications of the buyers. Imports 
consist of a few replacements for foreign-made automobiles. Removal 
of the duty would probably have little or no effect on the import- 
domestic price situation. 

ASBESTOS CLUTCH FACINGS (NOT MOLDED) 

1. Description and use. — Clutch facings are flat rings used to line 
the plates of automobile clutches. These woven facings are more 
expensive than the molded type. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




" 


92 


$3, 449, 948 









3. Recent tariff history.— Act of 1913: 10 percent. Act of 1922: 
25 percent. Act of 1930: 40 percent. Present duty: 20 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . - -- 


$2, 715, 8! 6 
3, 449, 948 


8 


Q) 




$47,712 







Negligible. 



' Not separately reported. 



6. Industrial concentration and tarirff policy. — Specialization, econo- 
mies of large-scale production, and contracts for supplying the 
automobile industry account for the concentration. Removal of 
the duty would not affect the import-domestic price situation. 

* United Kingdom Trade Agreement, effective January 1, 1939. 



198 CONCENTRATION OF DCONOMIC POWER 

SILICA BRICK 

1. Description and use. — Silica brick is a type of firebrick made 
largely from ganister, a special kind of silica rock. It is used prin- 
cipally in the construction and maintenance of open-hearth steel 
furnaces, in electric furnaces, and in others where the acid properties 
and other characteristics of silica refractories are particularly suitable. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 - 


26 


175 


$12,801,663 









3. Recent tari/ff history.— Act of 1913: 10 percent ad valorem. 
Act of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad 
valorem. Present duty: 12}^ percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$8,179,990 
12,801,663 


None 
None 


$390, 636 


1937 . . ... 


838, 241 







6. Industrial concentration arid tariff policy. — Technical skill, 
ownership of raw-material supplies, and specialized production by a 
few companies which suppl}'- a full line of related products account 
largely for the concentration. The recent reduction of the duty is 
likely to have only a minor effect on the import-domestic price 
situation. 

MAGNESITE AND CHROME BRICK 

1. Description and use. — Magnesite and chrome brick are heat- 
resistant brick used largely in constructing the masonry parts of basic 
open-hearth steel furnaces and others where high temperatures are 
needed. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


3 


100 


$6, 726, 943 









* First Canadian agreement, effective January 1, 1936, 15 percent; second agreement, effective January 1, 
1939, present duty, 12^2 percent. 



CONCENTRATION OF EiCONOMIC POWER 



199 



3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: % cent per pound plus 10 percent ad valorem. Act of 
1930: % cent per pound plus 10 percent ad valorem. Present duty: 
% cent per pound plus 10 percent ad valorem. 

4. Average ad valorem equivalent. — 1934, 43 percent; 1935, 21 percent; 
1936, 53 percent; 1937, 16 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3,424,726 
6, 726, 943 


$162 
122 


$957,208 


1937 





' Not available. 

6. Industrial concentration and tariff policy. — Technical skill, 
ownership of raw-material supplies (particularly with regard to niag- 
nesite brick) and establishment of brands account largely for the 
concentration. Removal of the duty would have little or no effect on 
the import-domestic price situation. 

GLAZED BRICK (SALT AND OTHER) 

1. Description and use. — Salt glazed brick are structural units on 
which a glaze is produced by introducing salt into the fire dm-ing the 
burning process. Other glazed brick are those coated with a ceramic 
glaze or less fusible ceramic mix. Salt-glazed brick is brown; the 
other finishes are made in different colors. 
"2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 and 12 


13-15 


I 79-" 85 


$2, 400, 759 


15 percent. 





3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: Conditionally free. Act of 1930: 5 percent ad valorem but 
not less than $1.50 per thousand. Present duty: 5 percent ad valorem 
but not less than $1.50 per thousand. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 400, 759 


$7 
284 


(') 


1937 - .- 


(') 







« Not avaUable. 



200 CONCKNTRATION OF IX'ONOMIC POWER 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion mostly as a side line and limited use of the product account for 
the concentration. Removal of the duty would have little or no 
effect on the import-domestic price situation. 

FAIENCE TILE 

1. Description and use. — Faience tile is a highly decorated glazed 
tile used largely for surfacing walls of bathrooms and other installa- 
tions. This type differs from ordinary glazed tile in that the body 
is always shaped while in the plastic stage, and the glaze is always 
opaque. 

2. Industrial concentration, 1937 — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


23 


25 


75 


$595, 108 


60 percent. 







3. Recent tarif history. — Act of 1913: 5 cents per square foot. Act 
of 1922: 45 to 60 percent ad valorem. Act of 1930: 50 to 70 percent 
ad valor(>m. Present duty: 50 to 70 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 ... 


$310,816 
595, 108 


8 


(') 


1937 


0) 







» Not available. 

6. Industrial concentration and tariff policy. — Side-line production 
l)y a few large manufacturers of glazed tile, some specialized produc- 
tion, technical skill, and limited use account largely for the concentra- 
tion. The recent reduction of the duty is likely to have only a minor 
effect on imports in coastal areas. 

ASPH.\LT FLOOR TILE 

1. Description and use. — ^Asphalt floor tile is molded from various 
types of composition which includes asphalt as a binding material. 

2. Industrial concentration, 1937. — 



Total nuiiibrr of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


■ 90 


$3, 313, 848 









5 On tile valued over 40 cents per square foot, duty reduced to about 30 or 35 percent ad valorem. United 
Kingdom trade agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 201 

3. Recent tariff history. — Act of 1913: 25 to 40 percent depending 
on appropriate tariff paragraph. Act of 1922: 25 to 40 percent de- 
pending on appropriate tariff paragraph. Act of 1930: 25 to 40 per- 
cent depending on appropriate tariff paragraph. Present duty: 25 
to 40 percent depending on appropriate tariff paragraph. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, anxJ exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 700, 000 
3, 313, 848 


(0 


('■' 


1937 


(■) 





' Negligible. 
2 Not available. 

6. Industrial concentration and tariff policy. — Some speciahzation, 
side-line production, and estabUshment of brands account for the con- 
centration. Reduction or removal of the duty would probably have 
little or no effect on the import-domestic price situation. 

CHEMICAL PORCEL.\IN AND STONEWARE 

1. Description and use. — Chemical porcelain and stoneware include 
acid-proof pipe, tubes and digestors, and crucibles and other con- 
tainers capable of withstanding unusually high temperatures. 

2. Industrial concentration, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


2-5' 


'2-5 


I 75-100 


$1,176,636 


60 percent. 





• Ranges cited indicate variation in companies, plants, and concentration for the 2 types enumerated 
above. 



Act of 1913: Not provided for. Act of 
.. .1^^ . .1 .g^j Act of 1930: 

Present duty: 60 



3. Recent tariff history. — xxv,u yji i^xo. ^^^J^J piwvn.ic„ __ 

1922: 60 percent, not decorated; 70 percent, decorated. Act of 1930: 
60 percent, not decorated; 70 percent, decorated. ^" 
percent, not decorated; 70 percent, decorated. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — • 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$867, 042 
1, 176, 636 


$7, 517 
24, 863 


(') 


1937 - - 


(') 







1 Negligible. 

6. Industrial concentration and tari/ff policy. — Specialization, tech- 
nical skill, and limited market account for the concentration. A 
substantial reduction of the duty would increase imports moderately 
and would lower prices. 



202 CONOENTIIATION OF EOONOMIC POWER 

PORCELAIN INSULATORS (SUSPENSION AND PIN TYPES) 

1. Description and use. — Porcelain insulators of suspension and pin 
types are among the numerous groups of porcelain articles used by- 
manufacturers of electrical equipment, and by power and light com- 
panies. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




15 


75 


$6,439,283 


60 percent. 





3. Recent tarif history. —Act of 1913: Not specially provided for. 
Act of 1922: 60 percent, not decorated; 70 percent, decorated. Act 
of 1930: 60 percent, not decorated; 70 percent, decorated. Present 
duty: 60 percent, not decorated; 70 percent, decorated. 

4. Average ad valorem equivalent. — None, 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports' 


Exports' 


1935 


$2,449,111 
6, 439, 283 


$7, 197 
5,754 


$502, 407 


1937 


738, 534 







• All classes of electrical porcelain. 

6. Industrial concentration and tariff policy. — Specialization, econ- 
omies of large-scale production, and size of market account largely 
for the concentration. A substantial reduction of the duty would 
increase imports greatly and would lower prices appreciably. 

GYPSUM PLASTERS 

1. Description and use.- — Gypsum plasters consist mainly of cal- 
cined gypsum (plaster of paris) to which some fiber and rotarder are 
added. They are mixed with sand and water and applied to interior 
walls. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larecst 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


23 


61 


85 


$15,479,391 


35 percent. 







3. Recent tariff history.— Act of 1913: 25 percent ad valorem. 
Act of 1922: 35 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF EOONOMIC POWER 
5. Domestic 'production, imports, and exports. — 



203 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


a $10, 281, 203 
15, 479, 391 


(') 


$128, 258 


1937 


68,288 







' Not separately reported, but negligible. 
2 Made from domestic gypsum only. 

6. Industrial concentration and tariff policy.- — Both horizontal and 
vertical combination account largely for the present concentration in 
production. A major portion of the Canadian industry is owned by 
the large American companies. Gypsum plaster absorbs moisture 
when stored a long time or shipped long distances by water. Re- 
moval of the duty would increase imports moderately and would 
lower prices slightly. 

keene's cement 

1. Description and use. — Keene's cement is a type of hard-finished 
gypsum plaster in which certain chemicals are used. This cement 
sets with a greater degree of hardness than ordinary gypsum plaster. 

2. Industrial concentration , 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937; 
Free, ad valorem 
rate, or equivalent 


5 


7 


190 


$546, 606 


29 percent. 







3. Recent tariff history. — Act of 1913: 10 percent ad valorem. Act 
of 1922: $3.50 to $14 per ton depending on value. Act of 1930: 
$3.50 to $14 per ton depending on value. Present duty: $3.50 to 
$14 per ton depending on value. 

4. Average ad valorem equivalent. — 1934, 27 percent; 1935, 27 
percent; 1936, 18 percent; 1937, 29 percent; 1938, 33 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$278, 914 
546, 606 


$1, 280 
675 


(') 


1937 


(') 







Not available. 



6 . Industrial concentration and tariff policy. — Specialized production , 
consolidations, and establishment of brands account for the con- 
centration. Removal of the duty would increase imports moderately 
and would lower prices appreciably. 



204 



CONCENTRATION OF ECONOMIC TOWER 
GYPSUM BOARD 



1. Description and use. — Gypsum board consists of plasterboard and 
wall board. Plasterboard is a substitute for wood or metal lath; 
wall board requires no finisliino: coat of plaster. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 


S and 9 __ 


f 29 
1 30 


91 
94 


$17, 683, 937 
17,954,182 


JSS percent. 





3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 35 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


•$8,389,254 
17, 683, 937 


8 


$42, 465- 
96,019 


1937— 





' Not separately reported, but probably nil. 
' Made from domestic gypsum only. 

6. Industrial concentration and tariff policy. — Horizontal and vertical 
combination, as well as patents, account for the present concentration. 
Reduction or removal of the duty would probably increase imports 
moderately in the northeastern coastal areas and in a few markets 
along the Canadian border. Prices generally would not be appre- 
ciably affected. The large American companies are also important 
Canadian producers. 

ELECTRIC LIGHT BULBS 

1. Description and use. — Electric light bulbs are the outer glass 
parts used in the manufacture of incandescent electric lamps. They 
are made in a great variety of shapes, sizes, and colors. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarilT status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 1 


16 


MOD 


'$16,000,000 


20 percent. 





1 Estimated. 

' 2 companies account for practically the entire output, 1 of which is a patent licensee of the other. 

3. Recent tariff history . — Act of 1913: 30 percent ad valorem. Act 
of 1922: 20 percent ad valorem. Act of 1930: 20 percent ad valorem. 
Present duty: 20 percent ad valorem. 



CONCENTRATION OF BCONOMIC I'OWEK 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



205 



Year 


Domestic 
production 


Imports 


Exports 


1935 


1 $12, 800, 000 
> 16, 000, 000 


$17, 284 
14, 385 


(2) 


1937 


h) 







1 Estimated. 

> Not separately reported. 

6. Industrial concentration and tariff policy. — The development and 
control of patents, as well as the economies of large-scale production, 
account for the concentration. Imports consist almost entirely of 
hand-blown bulbs of shapes and colors not ordinarily produced in the 
United States. Elimination of the duty would have no appreciable 
effect on imports and domestic prices. 

GLASS CONTAINEES 

1. Description and use. — Glass containers consist of articles such as 
packers' ware, fruit jars, milk bottles, and beer bottles. They are 
used for packaging beverages, food products, etc. 

2. Industrial concentration, 19S7. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6-25' - 


114^49 


•76-90 


$46,883,288 


28. 5 percent. 







» Ranges cited indicate variation in companies, plants, and concentration for the above-mentiou<'d types. 

3. Recent tariff history . — Act of 1913: 30 percent ad valorem. Act 
of 1922: 1 or IK cents per pound, or 50 cents per gross (depending on 
size). Act of 1930: 1 or !){ cents per pound, or 50 cents per gross 
(depending on size).^ Present duty: 1 or !){ cents per pound, or 
50 cents per gross (depending on size).'' 

4. Average ad valorem equivalent. — 1934, 15 percent; 1935, 19 per- 
cent; 1936, 25 percent; 1937, 28K percent; 1938, 27 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$35,120,000 
46, 883, 288 


$180, 872 
72, 860 


$2,105,069 


1937 


3, 320, 598 







6. Industrial concentration and tariff policy. — The control of patents 
largely accounts for the concentration. Imports of glass containers 
have always been negligible as compared with domestic production 
and usually consist of types not made domestically. Reduction or 
elimination of the duty would probably have little effect on imports 
and domestic prices. 

' The duty on bottles and jars nolding more than 1 pint was reduced 50 percent in the Czechoslovak 
trade agreement for the period April 16, 1938, to April 22, 1939. 



206 



CONCENTRATION OF EOONOMIC POWER 
GLASS TABLEWARE (MACHINE MADE) 



1. Description and use. — Glass tableware, machine made, consists 
mainly of articles such as tumblers, goblets, barware, plates, dishes, 
cups, and saucers. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 and 8 ' 


'7-11 


r '80 
1 '80-90 


} $24,596,778 


60 percent. 





' Eanges cited indicate variation in companies, plants, and concentration for the above items. 

3. Recent tariff history. — Act of 1913: 45 percent ad valorem. 
Act of 1922: 55 percent ad valorem. Act of 1930: 60 percent ad 
valorem.* Present duty: 60 percent ad valorem.* 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$23,361,221 
24, 596, 778 


(') 
(') 


$950, 487 


1937 


1,693,047 







' Not separately reported, but small. 

6. Industrial concentration and tariff policy . — The control of patents 
for automatic feeders, furnaces, and machines accounts largely for 
the concentration. A substantial reduction in the duty on machine- 
made glass tableware, or its elimination would have a very moderate 
effect on imports and domestic prices. Imports of glass tableware 
consist entirely of hand-made ware. 

TECHNICAL AND SCIENTIFIC GLASSWARE 

1. Description and use. — Technical and scientific glassware con- 
sists of articles, such as beakers, retorts, and test tubes. It is used 
mainly in laboratories of educational and research institutions. 
Glass for optical precision instruments is not included in this 
classification. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



► * Duty on table glassware reduced to 60 percent in Czechoslovak trade agreement for the period April 
16, 1938, to April 22, 1939. 
• If pressed and unpolished, or if pressed, polislied, and undecorated— 50 percent. 



CONCENTRATION OF BCONOMIC POWER 



207 



3. Recent tariff history. — Act of 1913: 45 percent ad valorem.^" 
Act of 1922: 65 percent ad valorem. Act of 1930: 85 percent ad 
valorem. ^^ Present duty: 85 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production i 


Imports 


Exports 


1935 - — 


$6, 500, 000 
11,000,000 


$148, 391 
174, 380 


$202, 654 


1937 


280, 138 







6. Industrial concentration and tariff policy. — The industry began 
during the World War period and developed rapidly thereafter. It 
now supplies all kinds including special heat-resisting glass com- 
parable with the Jena (German) glass. Apparently the industry has 
attained a position in which a substantial reduction in the duty 
would not increase imports greatly, but prices would be moderately 
lowered. 

SPECTACLE GLASS 

1. Description and use. — Spectacle, or ophthalmic glass has special 
optical properties and is used as the name indicates — largely for 
spectacles. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3. . — 


3 


100 


1 $3, 000, 000 


50 percent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: 45 
percent ad valorem. Act of 1930: 50 percent ad valorem. Present 
duty: 50 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$2,000,000 
3,000,000 


$66,925 
327, 800 


(>) 


1937 - --- 


m 







' Estimated. 

' Not available, but probably i 



6. Industrial concentration and tariff policy. — The conaparatively 
few types of glass required and the large market in the United States 
has made possible the use of mass production methods and facilitated 



'1 Conditionally free for certain institutions. 
■' Certain kinds of tubing, 65 percent. 



208 



CONCENTRATION OF ECONOMIC POWER 



concentration. A large part of the domestic output is made by a 
spectacle company for its own use. A substantial reduction in the 
duty would have a moderate effect on imports and prices. 



SHEET GLASS 



1. Description and use. — Sheet glass is an unground and unpolished 
flat glass product. It is used laigely as window glass, but it is also 
used in the manufacture of mirrors, watch crystals, photographic dry 
plates, safety glass, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarifT status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


14 


85 


$31,389,468 


66 percent. 





3. Recent tariff history. — Act of 1913: % to 2 cents per pound ac- 
cording to area. Act of 1922: Ij^ to 2K cents per pound according 
to area. Act of 1930: 1% to 3% cents per pound according to area.^'^ 
Present duty: V%i to 2^%^ cents per pound according to area.'^ 

4. Average ad valorem equivalent. — 1934, 51 percent; 1935, 46 
percent; 1936, 68 percent; 1937, 66 percent; 1938, 48 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$18,180,053 
31, 389, 468 


$119,766 
1,237,855 


0) 


1937... 


$52, 776 







' Not reported separately. 

6. Industrial concentration and tariff policy . — Technological changes, 
economies of large-scale production, and patents largely account for 
the concentration in recent years. A substantial reduction in the 
duty would probably increase imports moderately and would lower 
prices slightly in the coastal areas. The domestic industry is cen- 
tered largely around Pittsburgh. The general result would likely be 
some reduction in excess capacity and some increase in concentra- 
tion. 

PLATE GLASS 

1. Description and use. — Plate glass is a flat glass product with 
surfaces ground and polished. It is used mainly in the manufacture 
of safety glass for automobiles, but also for mirrors, table tops, 
furniture, and windows. 



'2 Rates effective by Presidential proclamation Juno 13, 1920. 

>' Presidentialproclanintion, ell'cctive January 1, 1932. Minimum rate of 37^^ percent for 12- to 16-ounce 
glass. Czechoslovak trade agreement reduced rates about 30 percent, April 16, 1938, to April 22, 1939. 



CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



209 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


9 


1100 


2 $46, 000. 000 


40 percent. 







1 Two companies account for about 90 percent. 
» Estimated. 

3. Recent tariff history. — Act of 1913: 6, 8, and 12 cents per square 
foot. Act of 1922: 12K, 15, and 17K cents per square foot.'* Act 
of 1930: 12K, 17, 17K, and 19% cents per square foot.^^ Present 
duty 8.3, 11.3, 11.7, and 13.2 cents per square foot.'^ 

4. Average ad valorem equivalent. — 1934, 78 percent; 1935, 44 per- 
cent; 1936, 55 percent; 1937, 40 percent; 1938, 63 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production > 


Imports 


Exports 


1935 


$42,000,000 
46, 000, 000 


$18, 397 
686, 174 


$1,497,150 


1937 . — - 


983,924 







6. Industrial concentration and tariff policy. — Technological changes, 
especially to meet the demand of the automobile industry, economies 
of large-scale production, and patents largely account for the con- 
centration in recent years. Since the industry is on an export basis 
and holds the main domestic market because of nontariff factors, a 
substantial tariff reduction would increase slightly imports of plate 
glass for buildings and furniture and would probably lower prices in 
coastal areas. Concentration would not be appreciably affected. 



ROLLED GLASS 



1. Description and use.— Rolled glass is a flat glass product with a 
rough, ribbed, figured, or fluted surface. Rough wire glass is roUed 
glass containing a wire netting. Colored rolled glass is another type. 
These products are used in the building industry. 

2, Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Perce,nt of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


12 


80 


$4,105,837 


38 percent. 







1* Presidential proclamation February 16, 1929, increased duty to 16, 19, and 22 cents. 
" Glass measuring Yi inch or more in thickness subject to minimum 50 percent. 
16 Belgian trade agreement, effective May 1, 1935. 



210 CONCENTItATION OF ECONOMIC POWER 

3. Recent tariff history. — Act of 1913: ji or 1 cent per square foot 
according to area. Act of 1922: % or 1}^ cents per square foot accord- 
ing to area. Act of 1930: IK cents per pound; 5 percent additional 
if colored, bent, beveled, etc. Present duty: 1^ cents per pound; 5 
percent additional if colored, bent, beveled, etc. 

4. Average ad valorem equivalent. — 1934, 34 percent; 1935, 48 per- 
cent; 1936, 48 percent; 1937, 38 percent; 1938, 47 percent. 

5. Domestic produciion, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3,013,500 
4, 105, 837 


$17, 847 
73, 481 


$104, 120- 


1937. . . 





' Not available. 

6. Industrial concentration and tariff policy. — The development of 
continuous, large-scale manufacturing of rolled glass accounts in part 
for the concentration in production. The largest company, however, 
owns five plants. A substantial reduction in the duty would probably 
have little effect, except in a few coastal areas, on imports and domestic 
prices. 

STRUCTURAL GLASS 

1. Description and use. — Structural glass, or obscured glass, is a 
flat glass product. It is a special decorative type of heavy, colored 
roUed glass which is frequently used as a substitute for marble, clay 
tile, and stone in the building industry. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937.- 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


1 $1,600, 000 









3. Recent tariff history. — Act of 1913: 6.8 and 12 cents according^ 
to area. Act of 1922: 12}^, 15, and 17}^ cents per square foot accord- 
ing to area. Act of 1930: 12^, 17, 17K, and 19% cents per square foot 
according to area. Present duty: 8.3, 11.3, 11.7, and 13.2 cents per 
square foot according to area.''' 

4. Average ad valorem equivalent. — 1934, 46 percent; 1935, 42 per- 
cent; 1936, 62 percent; 1937, 46 percent; 1938, 31 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
'production ' 


Imports 


Exports 


1935 


$800, 000 
1,600,000 


$7, 138 
22, 834 


(') 


1937.. 


$65, 548 







> Estimated. 
» Not available. 

" Belgian trade agreement, effective May 1, 1935. Minimum duty of 50 percent on thick glass (i^ inch, 
or more) reduced to 40 percent if unground: 



CONCE-NTRATION OF BOONOMIC POWER 



211 



6. Industrial concentration and tariff policy. — The two large pro- 
ducers of structural glass are also the largest producers of plate glass. 
A substantial reduction in the duty would have very little effect, 
except in a few coastal areas, on imports and domestic prices. Im- 
ports have remained negligible since the reduction in the Belgian 
agreement. 

SAFETY GLASS (LAMINATED) 

1. Description and use.— Laminated safety glass consists of two 
pieces of flat glass, plate or sheet, bound together with a layer of 
plastic material. It is used principally in automobiles, but also for 
goggles, gas masks, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 - 


9 


190 


$76, 504. 803 


45 percent. 





3. Recent tariff history.— Act of 1913: ^^ Act of 1922: ^^ Act of 
1930: 60 percent ad valorem. Present duty: 45 percent ad valorem.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$53,282,938 
76, 504, 803 


$180 
604, 844 


$87 16l 


1937 







» Not available. 



6. Industrial concentration and tariff policy. — The small companies 
make this product from purchased flat glass ; the large companies also 
make flat glass. The latter supply on exclusive contractual basis 
most of the automobile trade. Imports increased in 1937 because of 
strikes in the domestic industry. Elimination of the duty would 
probably have little effect on imports and domestic prices. The 
domestic industry is in a very advantageous position as compared 
with foreign producers. 

18 Not separately provided for; duty unknown. 
i» Belgian trade agreement, effective May 1, 1935. 



GROUP G: NONFERROUS METALS AND PRODUCTS 

COPPER (BLISTER AND REFINED) 

1. Description and use. — Copper, blister and refined, consists mainly 
of ingots, pigs, bars, cathodes, etc. It is a semifinished product of 
the smelting or refining industry from which finished copper products 
are manufactured. 

2. Industrial concentration, 1937. — 



Total Rurnber of companies 


Total 
number 
of plants 


Percent of 

domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




19 


86 


$219,900,000 


33 percent.! 







• Duty applied to about 8 percent of imports. 

3. Recent tariff history. — Act of 1913: free. Act of 1922: free. 
Act of 1930: Free.^ Present duty: Import excise tax of 4 cents per 
pound, copper content. 

4. Average ad valorem equivalent. — 1934, 55 percent; 1935, 58 per- 
cent; 1936, 52 percent; 1937, 33 percent; 1938, 46 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production i 


Imports ' 


Exports 


1935 


$65,400,000 
219,900,000 


$28,486,000 
45, 144, 000 


$40,258,000 




76,684,000 







1 Estimated. 

' Mainly free of duty for reexport. 

6. Industrial concentration and tarif policy. — The large investment 
required for a modern refinery, as well as the ownership of extensive 
ore deposits, largely account for the present concentration. Imports 
are mainly unrefined copper. About 90 percent of it is usually re- 
exported in a refined form. Removal of the import excise tax would 
tend to increase imports for domestic consum])tion and to lower 
domestic prices. 



COPPER SHEETS, PLATES, AND RODS 

1. Description and use. — Copper in these forms is a semifinished 
product of the rolling mills. Sheets and plates are used for the 
manufacture of various products; rods are used mainly for making 
wire. 



1 Import excise tax of 4 cents per pound, copper content, Juno 21, 1932, but not applicable to imported 
copper for reexport. 

212 



CON'OKNTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



213 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 


28 


91 


$80, 430, 000 


12 percent. 





3. Recent tariff history.— Act of 1913: 5 percent ad valorem. Act 
of 1922: 2% cents per pound. Act of 1930: 2}^ cents per pound. 
Present duty: 2^ cents per pound plus import excise tax of 4 cents 
per pound,^ 

4. Average ad valorem equivalent. — 1934, 20 percent; 1935, 17 per- 
cent; 1936, 40 percent; 1937, 12 percent; 1938, 20 percent. 

. 5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$48,530,000 
80,430,000 


$1, 274 
835 


$3, 245, 600 
4, 698, 300 


1937 





6. Industrial conceiitration and tariff policy. — The integration of 
rolling mills with primary producers accounts largely since 1922 for 
concentration of production. Imports are a few specialties. Exports 
consist mainly of rods. Reduction or removal of the duty and excise 
tax, providing the raw material was free of duty and tax, would not 
affect appreciabl}^ imports and domestic prices. 

TIN INGOTS AND PIGS 

1. Description and use. — Tin ingots and pigs are used for plating steel 
and for maldng alloys. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$8, 450, 000 



3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production i 


Imports 


Exports 


1935 


$9, 650, 000 
8, 450, 000 


$69, 815, 000 
104, 285, 000 


$2, 375, 000 


1937 . 


385, 000 







■ Made from scrap; estimated. 

» Import excise tax effective June 21, 1932. 



214 CONCENTRATION OF KCONOMIC POWER 

6. Indufitrial concentration and tariff policy. — The domestic output 
of tin ingots and pigs is produced from scrap tin. Economies of large- 
scale production account for the concentration. Since the United 
States is not a producer of tin ore, no tariff problem is involved. 

BRASS AND BRONZE TUBING AND PIPE 

1. Description and use. — Brass and bronze tubing and pipe are used 
in steam plants, for condenser units in plumbing and for similar pur- 
poses. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 


25 


79 


$34, 870, 000 


40 percent. 







3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 8 cents per pound, bronze and seamless brass; 12 cents, 
brazed brass. Act of 1930: 8 cents per pound, bronze and seamless 
brass; 12 cents, brazed brass. Present duty: 8 cents per pound, 
bronze and seamless brass; 12 cents, brazed brass.^ 

4. Average ad valorem equivalent. — 1934, 54 percent; 1935, 56 per- 
cent; 1936, 53 percent; 1937, 40 percent; 1938, 40 percent. 

5. Domestic production, imports, and exports. — • 



Year 


p?oTuS I-Po^ts 


Exports 


1935 - 


$16,626,000 
34,870,000 


$104, 000 
65,000 


$188,000 


1937 


706,000 







6. Industrial concentration and tariff policy. — Teclmical skill, econ- 
omies of large-scale production, and financial resources and integra- 
tion account largely for the concentration. A substantial reduction 
of the duty and elimination of the tax would tend to increase imports 
moderately and lower prices slightly in coastal areas. 



ALUMINUM INGOTS 



1. Description and use. — Aluminum ingots, pigs, slabs, etc., are 
crude products. They are used for foundry remelting in the manu- 
facture of more advanced products. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


24 


33 


82 


1 $79, 382, 000 


26 percent. 







Ingots $27,307,000 for sale only. 



' Additional 4 cents per pound on copper content, excise tax of June 1932. 



CONCENTRATION OF ECONOMIC POWER 



215 



3. Recent tariff history. —Act of 1913: 2 cents per pound. Act of 
1922: 5 cents per pound. Act of 1930: 4 cents per pound. Present 
duty: 3 cents per pound.* 

4. Average ad valorem equivalent. — 1934, 21 percent; 1935, 23 per- 
cent; 1936, 25 percent; 1937, 26 percent; 1938, 29 percent. 

5. Domestic production, imports, and exports. — ■ 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$41, 088, 000 
1 79,382,000 


$3, 646, 000 
6, 770, 000 


$486, 000 
967, 000 


1937 





» Ingots $27,307,000 for sale only. 

6. Industrial concentration and tariff policy. — Experience, economies 
of large-scale production, and financial resources account for the pres- 
ent concentration. American companies own ore plants abroad. 
There is an international cartel. Removal of the duty would probably 
affect only moderately the import-domestic price situation. 

ALUMINUM WARE 

1. Description and use. — Aluminum ware consists of stamped, spun, 
and cast products. Cooking utensils are the largest class. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 to 251 ._ 


1 11-27 


179-91 


$37, 457, 363 


55 percent. 





1 Range cited indicates variation in companies, plants, and concentration for 3 types mentioned above. 

3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 11 cents per pound plus 55 percent ad valorem. Act of 
1930: 8}{> cents per pound plus 40 percent ad valorem. Present duty: 
8}^ cents per pound plus 40 percent ad valorem. 

4. Average ad valorem equivalent. — 1934, 54 percent; 1935, 54 per- 
cent; 1936, 54 percent; 1937, 55 percent; 1938, 53 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$24, 550, 818 
37, 457, 363 


$51, 226 
48, 815 


$302, 152 


1937 


411, 864 





6. Industrial concentration and tariff policy. — The largest producer 
of aluminum, which is the raw material for the industry, owns sub- 
stantial stock of the largest manufacturer of these wares and the 
entire stock of the second largest manufacturer. A substantial reduc- 

* Canadian trade agreement (second), effective January 1, 1939. 



1 1—41— No. 10- 



216 CONCENTRATION OF ECONOMIC POWER 

tion of the duty would probably increase imports, especially of the 
cheaper wares, and lower moderately domestic prices. 

NICKEL ALLOYS 

1. Description and use. — Nickel alloys include all types of plates, 
sheets, rods, tubing, pipe, and castings. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
oi plants 


Percent of 
domestic 
production 
by 4 larKCSt 
companies 


Domestic 
production 


Tariff status ip 1937: 
Free, ad valorem 
rate, or equivalent 


9 to 60 • 


112-60 


176-94 


» $26, no, 000 


34 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the above types. 
» For sale and interplant transfer. 

3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: 25 percent ad valorem, plus 10 percent if cold worked. 
Act of 1930: 25 percent ad valorem, plus 10 percent if cold worked. 
Present duty: 25 percent ad valorem, plus 10 percent if cold worked.' 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(■) 
2 $26, 110, 000 


$15,921 
7,103 


(') 


1937 


(■) 







1 Not available. 

' For sale and interplant transfer. 

6. Industrial concentration and tariff policy. — Ownership of ore 
deposits, financial resources, and integrated production on a large 
scale account largely for the concentration. The largest company 
is affiliated with an important British company. Removal of the 
duty would probably affect only moderately the import-domestic 
price situation. 

ANTIFRICTION BEARING METAL (OTHER THAN WHITE BASE) 

1. Description and use. — Antifriction bearing metals, other than 
white base (lead or tin), are those with a copper or cadmium base. 
They are used in machine bearings. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larpi'st 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


28 


91 


$3, 872, 000 









• Reduction on tubinp to 12'/i; percent ad valorem, plus 5 percent if cold worked; United Kingdom trade 
agreement, effective January l, 1939. 



CONCENTRATION OF DCONOMIC POWER 



217 



3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free. 
Act of 1930: Chiefly of copper, free; chiefly of cadmium, 45 percent.® 
Present duty: Copper content, 4 cents per pound ; chiefly of cadmium, 
45 percent.^ 

4. Average ad valorem equivalent. — No record of imports, and hence 
not available. 

5. Domestic ^production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 538, 000 
■3, 872, 000 






1987 - 





1 No record of imports or exports. 

6. Industrial concentration and tariff policy.- — Patents and produc- 
tion according to varying specifications largely account for the con- 
centration. There is no record of imports or exports. Apparently, 
the tax is of no significance. 

FACTORY-LIGHTING FIXTURES 

1. Description and use. — Fixtures of this nature are usually of the 
simplest types, many consisting of only a metal tube, a socket for a 
bulb, and an enameled reflector. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10- ___ 


10 


93 


$2, 019, 972 


45 percent. 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 40 percent ad valorem. Act of 1930: 45 percent ad 
valorem. Present duty: 45 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


p?oTuSn I-Ports 


Exports 


1935 


$2, 019, 972 


!? 


W 


1937 


(') 







' Not available. 

2 Not separately reported, but probably small. 

6. Industrial concentration and tariff policy. — Some speciahzation, 
side-line production by a few large manufacturers of many types of 
lighting equipment, and size of market account largely for the con- 
centration. A substantial reduction of the duty would probably 
affect only moderately the import-domestic price situation. 

6 Cadmium not separately provided for. nor developed prior to 1930. 

' Import excise tax of 4 cents per pound on copper effective June 21, 1932. 



218 



CONCENTRATION OF E^X>NOMIC I'OWEK 
STREET- AND HIGHWAY-LIGHTING FIXTURES 



1. DescrijAion and use. — Street- and highway-lighting fixtures 
include the usual outdoor fixtures, but do not include posts and poles, 
nor traffic signals. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 




14 


89 


$2,650,343 









3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 40 percent ad valorem. Act of 1930: 45 percent ad 
valorem. Present duty: 45 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 650, 343 


(2) 


(') 


1937 . - 


V) 







1 Not available. 

» Not separately reported, but small. 

6. Industrial concentration and tariff policy. — Limited markets and 
production by a few large companies which make many tj^pes of light- 
ing equipment account for the concentrtaion. Imports consist of 
special types. A substantial reduction of the duty would have little 
or no effect on the price. 



GROUP H: IRON AND STEEL PRODUCTS 

MUCK AND SCRAP BAR 

1. Description and use. — Muck and scrap bar are made of wrought 
or common iron. Muck and scrap bar are semifinished material 
from which the finished products are made. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


9 


190 


$1, 022, 547 


18 percent. 





3. Recent tariff history. — Act of 1913: 5 percent. Act of 1922 
Ko cents to IK cents per pound depending on value. Act of 1930 
Ko cents to !){ cents per pound depending on value. Present duty 
Yi cent to 1 cent per pound depending on value. ^ 

4. Average ad valorem equivalent. — 1934, 24 percent; 1935, 21 per 
cent; 1936, 18 percent; 1937, 18 percent; 1939, 18 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 . 


$847,003 
1,022,547 


$79,499 
133,375 


(') 


1937 


(2) 







1 Made for sale and interplant transfer. 

2 Not separately reported. 

6. Industrial concentration and tariff policy. — Specialization and a 
limited market account largely for the concentration. Imports, 
especially Swedish iron, are sometimes preferred because of quality. 
A substantial reduction of the duty would probably increase imports 
moderately and lower prices slightly, especially in coastal areas. 

CAST IRON PIPE (culvert AND FLANGEd) 

1. Description and use. — Culvert and flanged pipe are special grades 
of cast-iron pressure pipe. The former is used for culverts, and the 
latter when combined rigidity, strength, and tightness are required. 
Flanged pipe is widely used in oil refineries and other industrial 
plants, but seldom in underground service. 

1 Duty reduction on 4 of 5 value brackets; Belgian Trade Agreement, May 1, 1935, and Swedish Trade 
Agreement, August 5, 1935. 

219 



220 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
flomestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6to8" . 


15-13 


I 85-95 


$1, 158, 304 


15 percent. 





' Ranges cited indicate variation in companies, [)lants, and concontration for the two types included. 

3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: 20 percent ad valorem. Act of 1930: 25 percent ad 

valorem. Present duty: 15 percent ad valorem.^ 

4. Average ad valorem equivalent.— None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports' 


1935 - . 


$837, 137 
1, 158, 304 


$2,025 
68,700 


$627, 214 


1937 


1 092 658 







' Cast iron pipe and fittings of all kinds. 

6. Industrial concentration and tariff policy. — Side-line production 
and size of market account largely for the concentration. Imports 
from France, the principal source, are inferior as compared with the 
domestic product (higher phosphorus content — more susceptible to 
breakage). A substantial reduction of tlie duty would increase 
imports moderately and would lower prices slightly. 

SEMIFINISHED ROLLED STEEL PRODUCTS (INCLUDING BLOOMS 
AND BILLETS) 

1. Descrij)tion and use. — Semifinished steel is the material from 
which finished-steel products are manufactured. 

2, Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


15.... 


25 
75 


76 
84 


} 1 $236, 506, 625 


25 percent. 


37 







' Includes production for interplant transfers. 

3. Recent tariff history . — Act of 1913: free or 15 percent ad valorem. 
Act of 1922 : ){l cent per pound to 3)^ cents per j)ound, or 20 percent 
ad valorem. Act of 1930: ^(o cent to 3K cents per pound or 20 per- 
cent ad valorem. Present duty: K cent to 3K cents per pound or 20 
percent ad valorem.^ 

4. Average ad valorem equivalent. — 1934, 30 percent; 1935, 27 
percent; 1936, 25 percent; 1937, 25 percent; 1938, 25 percent. 

' French Trade Agreement, effective June 15. 1936. 
' Trade Agreements with Belgium and Sweden, 1935. 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



221 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 .. 


$209, 831, 485 
236, 506, 625 


(2) 
$227,880 


$900, 605 


1937 


13. 391. 372 







For sale and interplant transfers. 
■ No comparable data available. 



6. Industrial concentration and tariff j^oUcy .—Economies of large- 
scale production, financial resources, and integration account Ijirgely 
for the concentration. A substantial reduction of the duty would 
increase imports moderately and would lower prices slightly in 
coastal areas. 



STEEL, HOT-ROLLED STRIPS AND FLATS (FOR COLD ROLLING) 

1. Description and use. — Hot-rolled steel strips and flats for cold 
rolling are made usually on continuous hot mills. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




24 


86 


$59. 903, 714 


15, 20, or 25 percent. 







3. Recent tariff history. — Act of 1913: 12 or 15 percent ad valorem. 
Act of 1922 : 25 percent ad valorem. Act of 1930 : 25 percent ad valor- 
em. Present duty: 15, 20,* or 25 percent ad valorem, depending on 
thickness. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$40, 409, 221 
59, 903, 714 


$710, 978 
1,435,280 


, $1, 283, 478 


1937 


4. 129. 168 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration account largely 
for the concentration. Imports consist mostly of high-grade steel 
for razor blades. The bulk of domestic production is low-grade steel 
for automobile fenders, etc. A substantial reduction of the duty 
would increase imports and would lower prices moderately. 

STEEL, HEAVY STRUCTURAL SHAPES 

1. Description and use. — Heavy steel structural shapes are a mam 
product of the steel industry. They are used in various types of 
construction. 



Swedish Trade Agreement, effective Aug. 5, 1935. 



222 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 


32 


190 


« $110, 873, 129 


14 percent. 





1 Estimated. 

' For sale and interplant transfer. 

3. Hecent tarijf history. — Act of 1913: 10 percent ad valorem. Act 
of 1922: % cent per pound. Act of 1930: % cent per pound. Present 
duty: % cent per pound. 

4. Average ad valorem, equivalent. — 1934, 16 percent; 1935, 15 per- 
cent; 1936, 15 percent; 1937, 14 percent; 1938, 14 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports « 


Exports » 


1935_ 


$48, 874, 337 
110,873,129 


$1,118,577 
2, 479, 239 


$1, 493. 788 
6, 984, 169 


1937... 





' Made for sale and interplant transfer. 
> Includes both heavy and light shapes. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration largely account 
for the concentration. Imports are probably slightly inferior in 
quality of steel, accuracy of sections, etc. A substantial reduction 
of the duty would probably increase imports moderately and would 
lower prices in coastal areas. 

UNIVERS.\L STEEL PLATES 

1. Description and use. — Universal steel plates are rolled bj^ vertical 
and horizontal rolls which determine both thickness and width. 
They are used principally for structural purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 


28 


79 


1 $34, 263, 912 









> For sale and interplant transfer. 

3. Recent tarif history. — Act of 1913: 12 percent ad valorem. Act 
of 1922: J20 cent per pound; Ko cent per pound. Act of 1930: Ko cent 
per pound. Present duty: ^Koo cent per pound.^ 

4. Average ad valorem equivalent. — 1934, 38 percent; 1935, 33 per- 
cent; 1936, 28 percent; 1937, 28 percent; 1938, 28 percent. 

• Belgian Trade Agreement, effective May 1, 1935. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic production imports, and exports. — 



223 



Year 


Domestic 
production ' 


Imports 


Exports 


1935.... 


$19, 886, 955 
34, 263, 912 


2 $20, 596 
3 7, 160 




1937 


21, 506, 612 





1 Made for sale and interplant transfer. 

2 Includes skelp. 

3 Excludes galvanized or coated plate. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources and integration account largely 
for the concentration. Imports are probably slightly inferior in 
quality and accuracy of rolling. A substantial reduction of the duty 
would increase imports moderately and would lower prices in coastal 
areas. 

STEEL-SHEET PILING (FL.\IN) 

1. Description and use. — Steel-sheet piling, plain, is an interlocking 
type of piling used for seawalls and various types of construction. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


5 


100 


1 $5, 773, 394 


11 percent. 





1 For sale and interplant transfer. 

3. Recent tariff history. — Act of 1913: 10 percent ad valorem. Act 
of 1922: )i cent per pound. Act of 1930: % cent per pound. Present 
duty: )i cent per pound. 

4. Average ad valorem equivalent. — 1934, 14 percent; 1935, 13 
percent; 1936, 13 percent; 1937, 11 percent; 1938, 11 percent. 

5. Domestic production, imports, and exports.— 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$5,939,196 
5, 773, 394 


$43,025 
90, 179 


i}) 


1937 


$464, 505 







1 Made for sale and interplant transfer. 
' Not available. 

6. Industrial concentration and tariff policy. — The difficulty and ex- 
pense involved in rolling this product and the limited market account 
for the concentration. A substantial reduction of the duty would 
probably increase imports slightly in coastal areas. 



224 



CONCENTRATION OF ECONOMIC POWER 
STEEL SKELP 



1. Description and use. — Steel skelp is the principal material for the 
manufacture of welded pipes and tubes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


22 


82 


$26, 084, 541 


27 percent. 





3. Recent tariff history. — Act of 1913: 12 percent ad valorem. Act 
of 1922: 3^{oo cent to ^Xoo cent per pound or 20 percent ad valorem. 
Act of 1930: ^^{oo cent to ^Koo cent per pound or 20 percent ad valorem. 
Present duty: ^Koo cent to ^%oo cent per pound or 20 per cent ad 
valorem.*' 

4. Average ad valorem equivalent. — 1934, 33 percent; 1935, 30 per- 
cent; 1936, 27 percent; 1937, 27 percent; 1938, 27 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$15, 840, 783 
26,684,541 


$455 




1937 ... . 


3 506 898 







• Not available. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration account, largely, 
for the concentration. Imports are probably slightly inferior in 
quality and accuracy of gage. Substantial reduction of the duty 
would increase imports slightly and would lower prices in coastal 
areas. 

STEEL RAILS 

1. Description and use. — Heavy steel rails (over 60 pounds per 3^ard) 
are used chiefly by railroad and streetcar systems; light rails are used 
in mines and for other industrial purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larpcst 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


14 


195 


s $53, 716, 019 









For sale and interplant transfer. 



3. Recent tariff history.— Act of 1913: Free. Act of 1922: Ko cent 
per pound. Act of 1930: Xo cent per pound. Present duty: Kocent 
per pound. 



Belgian trade agreement, effective May 1, 1935 



CONCENTRATION OF EiCONOMIC POWER 



225 



4. Average ad valorem equivalent.— 1934, 10 percent; 1935, 9 percent; 
1936, 10 percent; 1937, 8 percent; 1938, 8 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$25, 541, 173 
53, 716, 019 


$219, 109 


$1,454,679 
4,496,819 


1937 . 





Made for sale and interplant transfer. 



6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration largely account 
for the concentration. Imports are light rails, whereas less than 
10 percent of domestic production is light rails. A substantial reduc- 
tion of the duty would probably increase moderatel}^ imports of light 
rails and would lower domestic prices. 

STEEL AXLES 

1. Description and use.— Steel axles within this classification con- 
sist primarily of those for railway use. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


9 


190 


$11,424,076 









3. Recent tariff history. — Act of 1913: 10 percent ad valorem. 
Act of 1922: ^{o cent per pound, valued at not more than 6 cents per 
pound. Act of 1930: %o cent per pound, valued at not more than 6 
cents per pound. Present duty: ^{o cent per pound, valued at not 
more than 6 cents per pound. ^ 

4. Average ad valorem equivalent. — 1934, 16 percent; 1935, 18 
percent; 1936, 15 percent; 1937, 12 percent; 1938, 18 percent. 

5. Domestic producHon, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 041, 687 
11,424,076 


$2, 542 
3,044 


(') 


1937 ... - 


(') 







Not reported separately, but probably ranges between $500,000 and $1,000,000. 



6. Industrial concentration and tariff policy. — Manufacture accord- 
ing to. rigid specifications, large plant investment, and production 
by the large steel companies largely account for the concentration. 
Removal of the duty would have no appreciable effect on the import- 
domestic price situation. 

' Canadian trade agreement, effective January 1, 1939, 



226 



CONCKNTUATION OF ECONO.MK: POWER 
STAINLESS STEEL STRIPS AND FLATS 



1. Description and use.- — Stainless steel strips and flats are highly 
alloyed (usually chrome or chrome-nickel) products which are used 
where resistance to corrosion and lioat is important. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


12 


190 


J $11, 839, 422 


31 percent. 





' Estimated. 

> For sale and interplant transfer. 



3. Recent tariff history. — Act of 1913: Various rates. Act of 1922: 
Various rates. Act of 1930: Paragraphs 304, 307, 313, and 316 (a). 
Present duty: Rates lowered about one-fourth.^ 

4. Average ad valorem equivalent. — 1934, 36 percent; 1935, 33 percent; 
1936, 31 percent; 1937, 31 percent; 193«, 31 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$3,894,799 
11,839,422 




f3) 
$412,637 


1937 





' For sale and interplant transfer. 
« Not separately reported. 
' Not available. 



6. Industrial concentration and tariff policy. — Specialization, as 
well as side-line production of a few large steel companies, account 
partly for the concentration; patents are also important. A sub- 
stantial reduction of the duty would increase imports moderately and 
lower slightly domestic prices. 



STEEL SAW PLATES 



1. Description and use. — Saw plates are made of high-grade steel 
and are used in making circular saws 

2. Industrial concentration, 1937 . — - 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 j • S-") 


$3, 499, 764 


23 percent. 









3. Recent tariff history. — Act of 1913: 12 percent ad valorem. 
Act of 1922: 2}^, Sji cents per pound, or 20 percent (depending on 
value), plus }i cent per pound.* Act of 1930: 2}^, 3K cents per pound, 

• Belgian trade agreement effective May 1, 1935; Swedish trade agreement effective August 5, 1935. 



CONCENTRATION OF ECONOMIC POWER 



227 



or 20 percent (depending on value), plus one-fourth cent per pound.^ 
Present duty: 2}^, 3)^ cents per pound, or 20 percent (depending on 
value), plus one-fourth cent per pound. ^ 

4. Average ad valorem equivalents. — 1934 to 1938, 23 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$1,673,451 
3, 499, 764 


$10, 378 
10, 894 


(2) 


1937 





1 For sale and interplant transfers. 

2 Not classified separately. 

6. Industrial concentration and tariff policy. — Side-line production 
of a few steel manufacturers and a limited market account for the 
concentration. A substantial reduction of the duty would probably 
increase imports moderately and would lower prices. 

STEEL COTTON TIES 

1. Description and use. — Steel cotton ties are thin bands of steel 
equipped with buckles. They are used mainly for baling cotton. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 


4 


100 


$3, 329, 293 


12 percent. 





3. Recent tarif history.— Act of 1913: Free. Act of 1922: One- 
fourth cent per pound. Act of 1930* One-fourth cent per pound. 
Present duty: One-fifth cent per pound. '^ 

4. Average ad valorem equivalent. — 1934, 14 percent; 1935, 14 per- 
cent; 1936", 13 percent; 1937, 12 percent; 1938, 12 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,072,415 
3, 329, 293 


$344, 035 
19, 750 


(') 


1937 





Not separately classified. 



6. Industrial concentration and tariff policy. — Side-lme production 
and limited market account largely for the concentration. Imports 
are probably slightly inferior (underweight) as compared with the 
domestic product. A substantial reduction of the duty would increase 
imports moderately, would lower prices slightly, and would accentuate 
industrial concentration. 



• Rates cited are for steel circular saw plates valued over 8 cents per pound; imports valued at less are 
negli.T;iblo. 
1" Belgian trade agreement, effective May 1, 1935. 



228 



CONCENTRATION OF E.rX>NOMIC POWER 
BLACK PLATE STEEL (FOR TINNING) 



1. Description and use. — Black plate steel for tinning is hot-reduced 
on hand mills, or is cold-reduced on modern continuous mills. It is 
used for the manufacture of tin plate. 

2. Industrial concentration, 1937. — 



Total niimbor of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larpcst 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 


25 


76 


$27,342,968 


27 percent 





3. Recent tariff history. — Act of 1913: 12 percent. Act of 1922: 
Forty-five one-hundredths cent per pound to eighty-five one-hun- 
dredths cent per pound. Act of 1930: Forty-five one-hundredths 
cent per pound to eighty-five one-hundredths cent per pound. Present 
duty: Thirty-five one-hundredths cent per pound to seventy one- 
hundredths cent per pound. ^^ 

4. Average ad valorem equivalent. — 1934, 33 percent; 1935, 30 per- 
cent; 1936', 27 percent; 1937, 27 percent; 1938, 27 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Experts > 


1935- 


(•) 
$27, 342, 968 


$5, 649 
11,912 


$6,549,830 
22, 464, 346 


1937 . 





1 Not available. 

2 Slightly more inclusive than domestic production. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, financial resources, and integration account largely 
for the concentration. Imports are slightly inferior in quality and in 
accuracy of gage as compared with domestic products. A substantial 
reduction of the duty would increase imports moderately and would 
lower prices slightly in coastal areas. 

TIN CANS 

1. Description and use. — Tin cans included here are packers' vent- 
hole top and sanitary cans, and beer cans. They are used for packag- 
ing foods, beverages, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6-18 > 


1 17-140 


1 89-95 


$199, 168, 414 


45 percent. 





Range cited indicates variation in companies, plants, and concentration for the above types. 



" Belgian trade agreement, effective May 1, 1935. 



CONCENTRATION OF ECONOMIC POWER 



229 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 45 percent ad valorem. 
Present duty: 22}^ percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


'$168,763,681 
199, 168, 414 


(2) 


$948 833 


1937 


1, 727, 672 







1 Beer cans not included. 

2 Negligible. 

6. Industrial concentration and tariff policy. — Economies of largo!- 
scale production and financial resources account largely for the con- 
centration. Because of their bulk, cans are usually made near the 
point of consumption. Removal of the duty would probably have 
very little effect on the import-domestic price situation. 

METAL FURNITURE 

1. Description and use. — The products under review include only 
metal office chairs, metal l>eauty-parlor furniture, and upholstered 
metal household furniture. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15-146 ' 


1 15-161 


' 88-90 


$18, 134, 536 


45 percent. 







' Ranges cited indicate variation in companies, plants, and concentration for the items above. 

3. Recent tarif history.— Act of 1913: 20 percent. Act of 1922: 40 
percent. Act of 1930: 45 percent. Present duty: 45 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$9, 717, 261 
18, 134, 536 


(') 


m 


1937 


<2) 







1 Not separately reported, negligible. 

2 Not available, but probably substantial. 

6. Industrial concentration and, tariff policy. — Production by a few 
large manufacturers of a full line of similar metal products, and econ- 
omies of large-scale production account largely for the concentration. 
A substantial reduction of the duty would probably increase moder- 
ately imports of a few foreign specialty items and would lower prices 
slightly. 

12 Trade 



agreement with the United Kingdom, effective Jan. 1, 1939. 



230 CONCENTRATION OF ECONOMIC POWER 

SOLID METAL WINDOW SASH AND FRAMES (NONFERROUS) 

1. Description and use. — A window sash is a framework to which 
panes of glass are attached. The sash is incased in a frame by which 
the sash is attached to the wall opening. Nonferrous metal sashes 
and frames are used only in the highest grade residential construction. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 


18 


87 


$864, 513 









3. Recent tarif history.— Act of 1913: 20 percent Act of 1922; 
percent. Act of 1930: 45 percent. Present duty: 45 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



40 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$589, 457 
864, 513 




(') 


1937 


(') 







1 Not separately reported, but negligible. 



6. Industrial concentration and tariff policy. — Specialized production 
for a limited market accounts for the concentration. Importers of 
British sash and frames in recent years have begun the manufacture 
of these products in the United States. A substantial reduction of 
the duty would tend to increase imports and lower prices slightly. 



FIREARMS 



1. Description and use. — Firearms included here consist of pistols, 
revolvers, rifles, and shotguns of all types which use explosive cartridges. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarifT status in 1937: 
Free, ad valorem 
rate, or equivalent 


e-8" 


■ 7-10 


190-95 


$21,142,800 









' Ran?e cited indicates variation in companies, plants, and concentration for the above types of firearms 

3. Recent tariff history. — Act of 1913: 35 percent ad valorem. 
Act of 1922: Specific rates and 45, 50, or 55 percent ad valorem ac- 
cording to value. Act of 1930: Specific rates and 45, 50, or 55 percent 



CONCENTRATION OF ECONOMIC POWER 



231 



ad valorem according to value. Present duty: Specific rates and 45, 
50, or 55 percent ad valorem according to value. ^^ 

4. Average ad valorem equivalent. — 1934, 83 percent; 1935, 41 per- 
cent; 1936, 37 percent; 1937, 36 percent; 1938, 38 percent. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935_ 


$11,845,900 
21, 142, 800 


$168,800 
298, 600 


$741,300 
1, 841. 400 


1937 . . 





6. Industrial concentration and tariff policy. — Horizontal combina- 
tion and financial resources largely account for the present concentra- 
tion. The domestic product is of high quality and comparatively 
inexpensive. Removal of the duty would probably have only a 
moderate effect on imports and domestic prices. 

OIL BURNERS 

1. Description and use. — Oil burners include the following types: 
forced or mechanical draft, commercial; fuel oil boiler-burner; and 
atmospheric draft, domestic. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11-20 1. 


1 11-20 


179-94 


$3, 131. 739 









1 Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 .. 


$2,953,113 
3,131.739 




(0 


1937 


(') 







» Not available. 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, marketing and servicing facilities, size of market, 
and some patents account largely for the concentration. Removal 
of the duty would probably have very little effect on the import- 
domestic price situation. 

"3 Duty on shotguns and parts reduced 50 percent in Belgian trade agreement efTective May 1, 1935; similar 
reduction on rifles valued at more than $50 each in trade agreement with the United Kingdom, effective 
January 1, 1939. 



ri— 41— No. 10- 



232 CONCENTRATION OF ECONOMIC POWER 

GAS BURNERS (fOR FURNACES AND BOILERs) 

1. Description and use. — The gas biirnors considorod here are eom- 
|)iete furnace-burner and boiler-burner units for heating systems. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9-21 1 


19-21 


176-95 


$3. 105. 586 


45 percent. 







1 Changes cited indicate variation in companies, plants, and concentration for the tveo types included 
above. 

3. Recent tariff history.— Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 45 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$1,168,531 

3, 105, .we 




0) 


1937 


(') 







1 Not reported separately, but negligible. 

6. Industrial concentration and tariff policy. — Specialization, limited 
market, promotional expense, and patents account largely for the 
concentration. These products are American specialties. Reduction 
or removal of the duty would not affect appreciably the (import- 
domestic) price situation. 



STOVES AND RANGES 



1. Description and use. — Stoves and ranges here considered are 
prunarily for cooking. Included are: Kerosene, porcelain enameled 
gas without ovens, nonporcelain coal and wood, coal, wood, and gas, 
and gasoline stoves and ranges. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 to 221 


15-23 


179-99 


$27, 166, 000 


25 percent. 







Ranges cited indicate variation in companies, plants, and concentration for the above enumerated types. 



CONCENTRATION OF ECONOMIC POWER 



233 



3. Recent tariff history. — Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 25 percent. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 1 


1935 .. 


$20,972,000 
27,166,000 


(2) 
(2) 




1937 . - 


500, 000 





1 Estimated. 

2 Negligible. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, specialization in certain types, and marketing 
facilities probably account for the concentration. Removal of the 
duty would not affect appreciably the (import-domestic) price 
situation. 

KEROSENE ROOM HEATERS 

1. Description and use. — Kerosene room heaters (wick and wickless) 
are portable units commonly used in the heating of individual rooms. 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6to8> 


17-9 


1 87-97 


$3,706,699 


45 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the 2 types included above 

3. Recent tariff history.— Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 45 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports' 


1935 . 


$3,706,699 


(3) 


$67, 640 


1937 


90.219 








1 Includes kerosene water heaters. 

2 Not available. 

3 Negligible. 



6. Industrial concentration and tariff po/ icy. —Specialization in the 
manufacture of kerosene-burning equipment accounts for the concen- 
tration. Reduction or removal of the duty would probably have 
little effect on the unport-domestic price situation. 

i< Swedish trade agreement, August 5, 1935. 



234 



CONCENTRATION OF ECONOMIC POWEU 
WATER HEATERS 



1. Description and use. — These water heaters include coal and wood 
(with storage tanks); kerosene, wick and wickless; and distillate 
types. They are used principally in homes equipped with plumbing, 
but with no available supply of gas. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarid status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 to 17 ' 


'6-17 


' 77-99 


$1, 579, 214 


45 percent. 





> Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history. — Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 45 percent, 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$1, 579, 214 


(2) 


s? 


1937 







1 Not available. 

' Not reported separately, but known to be small. 

6. Industrial concentration and tariff policy. — Many companies are 
in a position to manufacture these types of water heaters, but because 
of the small demand few include them in their production. There is 
no regular import trade in these classes. Reduction of duty W'Ould 
probably have no substantial effect on either the amount of imports 
or on price. 

COPPER RADIATORS 

1. Description and use. — Copper radiators are used primarily in 
hot-water heating systems for residences. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariflE status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


83 


$2,269,969 









3. Recent tariff history.— Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 45 percent. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic production, imports, and exports. — 



235 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$993, 921 
2, 269, 969 


(■) 


(') 









' Not separately reported; both exports and imports are probably small. 



6. Industrial concentration and tariff policy. — Specialization and 
limited market account for the concentration. Copper radiators are 
in large part an American specialty ; imports and exports are probably 
negligible. Reduction or removal of the duty would have little or no 
effect on the import-domestic price situation. 

plumbers' supplies (enameled iron) 

1. Description and use. — Plumbers' supplies included here are 
enameled iron sanitary fixtures of the types used in bathrooms, 
kitchens, hospitals, public buildings, etc. They consist of such 
articles as bathtubs, sinks, lavatories, laundry tubs, and drinking 
fountains. 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


24 ' 


.30 


175 


$34, 677, 059 









1 Estimated for the above classes as a group. 

3. Recent tarif history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 5 cents per pound plus 30 percent ad valorem. Act of 1930: 
5 cents per pound plus 30 percent ad valorem. Present duty: 5 
cents per pound plus 15 percent ad valorem.'^ 

4. Average ad valorem equivalent. — 1935, 50 percent; 1936, 52 per- 
cent; 1937, 73 percent; 1938, 57 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production • 


Imports 


Exports 


1935 


$24, 261, 190 
34, 677, 059 


$48 
26 


$439, 875 


1937 


940, 898 







1 Includes a small production of enameled steel. 

6. Industrial concentration and tarif policy. — Economies of large- 
scale production, establishment of brands and designs, extensive 
marketing facihties, and consohdations account for the concentration. 
The largest company owns many plants (about 20) located in 8 
foreign countries. These products are American specialties. Re- 
duction or removal of the duty would not affect the import-domestic 
price situation. 

's Swedish trade agreement, effective August 5, 1935. 



236 



CON'CENTKATION OF EOOXOMIC POWER 
SADDLERY AND HARNESS HARDWARE 



1. Description and use. — Saddlery and harness hardware inchides 
buckles, rings, snaps, bits, swivels, and other metal articles used on 
harnesses and saddles. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


21 


22 


82 


$3, 357, 161 


35, 50, and 60 percent. 





3. Recent tariff history. — Act of 1913: 20 percent; 50 percent if 
gold- or silver-plated. Act of 1922: 35 percent, harness hardware; 
50 percent, saddlery; 60 percent, gold- or silver-plated. Act of 1930: 
35 percent, harness hardware; 50 percent, saddlery; 60 percent, gold- 
or silver-plated. Present duty: 20 percent, harness hardware; 25 
percent, saddlery hardware; 30 percent, gold- or silver-plated 
hardware.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 .. 


$3, 222, 068 
3, 357, 161 


$19, 001 
21, 226 


$97 941 


1937 - 


127,766 







6. Industrial concentration and tarif policy. — Specialization and 
limited market account for the concentration. Imports consist 
largely of high-quality products. The recent reduction of the duty 
is likely to increase imports moderately. 

METAL WORKING FILES AND RASPS 

1. Description and use. — Metal working files and rasps comprise 
most of the file and rasp production. They are produced in a multi- 
tude of styles, cuts, and sizes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
bv 4 largest 
companies 


Domestic 
production 


TarifT status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 


16 




$12,355,744 


16 percent. 





United Kingdom trade agreement, effective January l, 1939. 



CONCENTRATION OF ECONOMIC POWER 



237 



3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 25 to 77K cents per dozen depending on size. Act of 
1930: 25 to 71 Vi cents per dozen depending on size. Present duty, 
20 to 45 cents per dozen depending on size.'^ 

4. Average ad valorem equivalent. — 1934, 22 percent; 1935, 21 per- 
cent; 1936, 16 percent; 1937, 16 percent; 1938, 16 percent. 

5. Domestic jproduction, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$8, 466, 147 
12, 355, 744 


$21, 672 
22, 045 


$1, 720, 821 


1937 


2, 474, 141 







6. Industrial concentration and tariff policy. — Specialization and 
economies of large-scale production account for the concentration. 
Imports consist mainly of files for precision work. Elimination of the 
duty would probably increase moderately imports of precision files 
and would lower prices slightly. 

" Swedish trade agreement, effective August 5, 1935; Swiss trade agreement, effective February 15, 1936. 



GROUP I: 



AGRICULTURAL AND AUTOMOTIVE MACHINERY 
RELATED PRODUCTS 



AND 



AGRICULTURAL IMPLEMENTS 

1. Description and use. — Agricultural implcmonts include combines, 
corn pickers, certain types of cultivators and plows, grain drills, disc 
harrows, manure spreaders, milking machines, mowers, and in- 
cubators. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest ■ 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 to 31 ' .-. 


19-33 


I 77-91 


$84,308,224 


Free. 







' Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history.— Act of 1913: Free. Act of 1922: 
Act of 1930: Free. Present duty: Free.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Free. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$36, 451. 234 
84, 308, 224 




$1,912,902 


1937 - --- 


3, 640, 558 







' Not available, but known to be large. 

6. Industrial concentration and tariff policy. — Full-line production, 
financial resources and integration, establishment of trade names, and 
patents largely account for the present concentration. There are eight 
full-line companies. Imports consist mostly of products made by 
American branch plants in Canada. In the second Canadian trade 
agreement the above products were bound on the free list. 



WHEEL-TYPE TRACTORS 



1. Description and use. — Wlieel-typc tractors include all tractors 
except the track-laying and garden types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 937: 
Free, ad val )rem 
rate, orequivalnt 


3 to 11 1 


13-11 


1 82-100 


$159,685,605 


Free. 


" 





1 Ranges cited indicate variation in companies, plants, and concentration for the different types included 
in this category. 



1 Bound free in Canadian trade agreement, effective January 1, 1939. 
238 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports.— 



239 

Act of 1922: Free. 



Year 


Domestic 
production 


Imports ' 


Exports 


1935 -- --- 


$83, 427. 604 
159.685,(505 


$755, 700 
1, 379, 155 


$5, 323, 234 


1937 . 


20, 152, 860 









• Includes track -laying and garden types. 

6. Industrial concentration and tariff policy. — Specialization, side- 
line production by large manufacturers of farm implements and gaso- 
line automotive products, financial resources, and patents account 
largely for the concentration. Imports consist mostly of tractors 
made in the Ford plant in England. In the Canadian trade agree- 
ment (second), effective January 1, 1939, a large number of agricul- 
tural implements were bound on the free list (par, 1604), but tractors 
were not included. 

CREAM SEPARATORS 

1. Description and use. — Cream separators include the farm types 
and the large-capacity installations for gathermg stations, creameries, 
etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


86 


$3, 812. 168 


5 percent.' 







3. Recent tariff history.— Act of 1913: Free, value not over $75; 20 
percent, value over $75. Act of 1922: Free, value not over $50; 25 
percent, value over $50. Act of 1930: Free, value not over $50; 25 
percent, value over $50. Present duty: Free, value not over $50;^ 
12K percent, value bracket $50-$100;'^ 25 percent, value over $100. 

4. Average ad valorem equivalent.- — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 ._ - 


$4,448,983 
3, 812, 168 


$552, 820 
693, 594 


$79, 909 


1937 


79, 222 







6. Industrial concentration and tariff policy. — Production by large 
manufacturers of farm implements and centrifugal equipment, estab- 
lishment of trade names, and extensive marketing facilities account 

2 Duty free status bound, Finnish agreement, effective November 2, 1936, Canadian agreement, January 
1, 1939. 

3 Finnish trade agreement. 



240 



CONCENTRATION OF ECONOMIC POWER 



largely for the concentration. Imports consist mostly of separators 
valued at about $25. A substantial reduction of the duty would 
probably not all'ect appreciably the import-domestic price situation. 

HAND IMPLEMENTS (AGRICULTURAL AND INDUSTRIAL) 

1. Description and use. — Agricultural and industrial hand imple- 
ments include forks, hoes, rakes, spades, shovels, and scoops for agri- 
cultural or garden use and for industrial purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 




13 and 36 


1 88 and 90 


$13,936,944 


41 and 30 percent. 







3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free; 
8 cents each, plus 45 percent; or 30 percent, depending on kind. Act 
of 1930: 8 cents each, plus 45 percent, or 30 percent, depending on 
kind. Present duty: 2 cents each, plus 12 percent; 7}^ percent; or 
15 percent, depending on kind.* 

4. Average ad valorem equivalent.- — (Not available except for 1937 — 
41 and 30 percent). 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$10,885,904 
13, 936, 944 


$47, 244 
79, 830 


> $248, 775 




608, 835 







1 Does not include "hay and manure forks." 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, marketing facilities, and establishment 
of brands account largely for the concentration. Removal of the 
duties would have with regard to the import-domestic price situation 
only a moderate effect on forks, hoes, and rakes, and only a very slight 
effect on shovels, spades, and scoops. 



WASHING MACHINES (GAS OR GASOLINE-ENGINE DRIVEN) 

1. Description and use. — Engine-driven washing machines are used 
in localities where electricity is not available. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


25 


27 


75 


S9, 225, 949 


271.6 percent. 







< Presidential proclamation. May 3, 1933, reduced the duties 50 percent. United Kingdom trade agree 
ment, cfTective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 241 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 27}2 percent ad 
valorem. Present duty: 27^2 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$8, 986, 000 
9, 225, 949 


0) 




1937 









6. Industrial concentration and tariff policy. — Specialized produc- 
tion and establishment of brands probably account for the concen- 
tration. Removal of the duty would have little or no effect on the 
import-domestic price situation. 

MIXING VALVE ENGINES (NOT MOTOR VEHICLE) 

1 . Description and use. — Mixing; valve engines are commonly called 
gas engines and burn natural, illummating, or producer gas made or 
supplied in the gaseous form outside the engine. 

2. Industrial concentration, 1937 — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937 
Free, ad valorem 
rate, or equivalent 



$4, 824, 171 



35 percent. 



3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935.... •. 


$904, 722 
4, 824, 171 




(•) 


1937 .. 


0) 







Not available. 



6. Industrial concentration and tariff policy. — Specialization and 
limited market probably account for the concentration. Removal of 
the duty would have very little efl'ect, if any, on the import-domestic 
price situation. 



STEAM TURBINES (OTHER THAN MARINE) 

1. Description and use. — Steam turbines are used principally for 
driving electric generators. They range in size from 250,000 horse- 
power to the small locomotive lighting units. 



242 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


10 


87 


$12, 860, 673 


20 percent. 





3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 15 percent ad valorem. Act of 1930: 20 percent ad valorem. 
Present duty: 20 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$12, 860, 673 




(1) 


1937 


(') 







> Not available. 

6. Industrial concentration and tariff policy.— Technicai skill with 
regard to production and installation and financial resources account 
largely for the concentration. Removal of the duty would probably 
have little or no effect on the import-domestic price situation. 

MOTOR-VEHICLE ENGINES (PASSENGER CAR, TRUCK, AND BUS) 

1. Description and use. — Motor-vehicle engines are sometimes 
made for separate sale. Some manufacturers purchase engines to 
install in their vehicles. Included here are passenger car engines 
and truck and bus engines for separate sale. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 and 7 


3-7 


(') 


$11, 277, 197 









Over 90 percent; estimated. 



3. Recent tariff history.— kci of 1913: 30 percent ad valorem. 
1099- OK T.^..^»r.f ..r\l\. nr.r.r\\i\r.r.^^ A..i.r Act of 1930: 25 pcrccnt 



5. JKecent tarijff History. —Act 01 lyiii: 6L 
1922: 25 percent with conditional duty 
^h conditional duty. Present duty: 25 

4. Average ad valorem equivalent. — None 

5. Domestic production, imports, and exports. 



with conditional duty. Present duty: 25 percent ad valorem 



Act 



Year 


Domestic 
production 


Imports 


Exports 


1935 . . 


$6, 582, 540 
11,277,197 


$1, 779 
1,541 


$3, 001, 104 


1937 


9, 040, 778 







Bound by United Kingdom trade agreement, effective January 1, 1939. 

Conditional duty provision repealed by terms of Trade Agreement Act of June 12, 1934. 



CONCENTRATION OF ECONOMIC POWER 



243 



6. Industrial concentrcdion and tariff policy. — Specialized production 
for sale and limited number of purchases account for the concentra- 
tion. Nearly all manufacturers of cars make their own engines 
rather than purchase them. Removal of the duty would have little 
or no effect on the import-domestic price situation. 

AIRCRAFT ENGINES (CARBURETOR TYPE) 

1. Description and use. — Aircraft engmes consist primarily of the 
radial air-cooled type and the newer liquid-cooled-in-line engines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


19 


19 


■90 


$28, 576, 971 


30 percent. 





I Estimated. 

3. Recent tariff history.— Act of 1913.^ Act of 1922: 30 percent 
Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 


$12, 610, 285 
28, 576, 971 


$54, 142 
18, 586 


$2 459 317 


1937 


5, 946. 054 





1 Excludes engines made for installation in aircraft manufactured in same plant. 

6. Industrial concentration and tariff policy. — Experimental research, 
financial resources, and patents largely account for the concentration. 
Reduction or removal of the duty would have very little effect on the 
mport-domestic price situation. 

MARINE OUTBOARD MOTORS 

1. Description and use. — Outboard motors are relatively light gaso- 
line motors which are attachable to the stern of boats. They are 
largely used on small fishing and pleasure craft. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 


3 


100 


$4, 519, 376 


30 percent. 





' No specific provision for aircraft and parts. 



244 



CONCENTRATION OF PXONOMIC POWER 



3. Recent tariff history. — Act of 1913: No specific provision. Act of 
1922: 30 percent. Act of 1930: 30 percent. Present duty: 17}^ 
percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports ' 


1935 - 


$2. 384, 967 
4, 519, 376 


?i 


$328 312 


1937 


628 337 







' Not available. 



' other than those installed. 



6. Industrial concentration and tariff policy. — Recent consolidations, 
establishment of trade-names, and patents largely account for the 
present concentration. One American company has a branch-plant 
in Canada. The recent reduction of the duty probably will mcrease 
imports moderately and lower prices slightly. 

DIESEL ENGINES (MARINE AND AUXILIARY) 

1. Description and use. — Diesel engines for connection to propeller 
shafts by reduction gearing and those for electric and auxiliary drive 
arc included in this category. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7and9. 


7-9 


90-95 


$6, 604, 782 









3. Recent tariff' history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930:' 27)^ percent ad 
valorem. Present duty: 27^2 percent ad valorem.^ 

4. Average ad valorem equivalent. — None 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$6, 604, 782 


(■) 
(0 


(') 


1937 


(') 







' Not available. 

6. Industrial concentration and tariff policy. — Some specialization 
and production by large manufacturers of other types of Diesel engines 
probably account for the concentration. Removal of the duty on 
these types would have only a moderate effect on the import-domestic 
price situation. 

« United Kingdom Trade Agreement, effective January 1, 1939. 

•Some minor reductions in small engines, not primarily for marine use, were made under United , 
Kingdom Trade agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 
PASSENGER CARS AND PASSENGER CAR CHASSIS 



245 



1. Description and use. — Passenger cars and their chassis inchide 
all types of passenger-carrying vehicles except large public con- 
veyances. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15 


69 


90 


$2,309,215,091 


10 percent. 





3. Recent tariff history. — Act of 1913: 30 percent, value under 
$2,000; 45 percent, value over $2,000. Act of 1922: 25 percent ad 
valorem with conditional duty. Act of 1930: 10 percent ad valorem 
with conditional duty. Present duty: 10 percent ad valorem. ^° 

4. Average ad valorem equivalent. — None, 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports! 


Exports 2 


1935 ... 


$1,765,591,000 
2,309,215,091 


$268, 804 
964, 002 


$94, 510, 757 
134,814,725 


1937 





1 Includes usediiars not separately classified. 

2 Not inrlnjtjn-rl cars. 

6. Industrial concentration and tariff policy. — Econom.ies of large- 
scale production, m.arketing and servicing facilities, establislmient of 
brands, and financial resources and integration account largely for the 
concentration. Im.ports consist of a few high-priced cars and a 
som.ewhat larger num.ber of small, low-priced cars. Removal of the 
duty would have little or no effect on the import-domestic price 
situation. 

COMMERCIAL CARS, TRUCKS, AND BUSSES (INCLUDING CHASSIS) 

1. Description and use. — Commercial cars, trucks, and busses 
include all types of comm.ercial vehicles, as well as light delivery types 
built on passenger car chassis. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


82 


122 


75 


$539,571,059 


10 and 25 percent. 





i" Conditional duty provision repealed by terms of the Trade Agreement Act of June 12, 1934. 



24G 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 30 percent, value less than 
$2,000; 45 percent, value over $2,000. Act of 1922: 25 percent ad 
valorem with conditional duty. Act of 1930: 10 and 25 percent 



depending on vahu; and size, with conditional duty. 
10 and 25 percent depending on value and size." 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Present duty: 



Year 


Domestic 
production 


Imports 


Exports 1 


1935 


$387, 395, 000 
539,571,059 


1 $7, 001 

(2) 


$50, 45C, 406 


1937 - - - -- 


100, 173,529 







1 Not including used types. 

2 No comparable data available. 

6. Industrial concentration and tariff policy. — Economies of large- 
scale production, m.arkoting and servicing facilities, establislun.cn t of 
brands, and financial resources account largely for the concentration. 
Removal of the duty would have little or no effect on the im.port- 
domestic price situation. 

II Conditional duty repealed by terms of the Trade Agreements Act of June 12, 1934. 



GROUP J: MACHINE TOOLS AND EQUIPMENT 

BENDING MACHINES (SHEET METAL BRAKES) 

1. Description and use. — Bending machines include here those used 
in creasing, bending, or folding sheet metal for air ducts, eave troughs, 
roofing, cans, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


95 


$1, 166, 625 


30 percent. 







3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


'$485,000 
1,166,625 




W 


1937 


(') 







' Estimated. 

' No comparable data 

6. Industrial concentration and tariff policy. — ^Specialization and 
size of market account for the concentration. The more complex 
types of these machines designed for large and rapid output are 
Am.erican specialties. Imports arc probably nil. Reduction or 
removal of the duty would probably have very little effect on the 
import-domestic price situation. 



BORING MACHINES 



1. Description and ^tse.— Boring machines include precision, hori- 
zontal, vertical machines, and boring, drilling, and milling com- 
binations. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 to 14' .. 


13-14 


1 79-100 


$5, 094, 087 









Ranges cited indicate variation in companies, plants, and concentration for the above types. 

247 

2.-,7771 — 41— No. 10 3 7 



248 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history.— Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




(■) 
$5,094,087 




(') 


1937 . - 


(I) 







' No comparable data available. 
' Probably nil. 

6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and size of market account for the concentration. These 
naachines are heavy, expensive types of equipment; in part, specially 
developed for American use. Reduction or removal of the duty would 
have little, if any, effect on the import-domestic price situation. 

BORING MILLS 

1. Descrij)tion and i/se.— Boring mills include various general utility 
types; heavy duty, with sidehead, without sidehead; and the vertical 
type. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 to 6' 


'3-6 


1 90-100 


2 $2. 962, 759 


30 percent 







» Range indicates variation in concentration among the types enumerated above, 
s Figure covers only sidehead units smaller than 59 inches. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


< $2, 962, 759 




(») 


1937 - 


(') 







1 No comparable data available. 

» Probably nil. 

3 Probably large. 

< Figure covers only side head units smaller than J 



6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, Jind size of market account largely for the concentration. 
A substantial reduction of the duty would have little effect on the 
import-domestic price situation. 



CONCENTRATION OF ECONOMIC POWER 



BROACHING MACHINES 



249 



1. Description and use. — Broaching machines operate by pushing a 
cutting tool through holes in metal parts. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


»85 


$2, 236, 683 


30 percent. 





1 Estimated. 

3. Recent tariff history. — Act of 1913: 15 percent. 
30 percent. Act of 1930: 30 percent. Present duty: 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Act of 1922: 
30 percent. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$825, 096 
2, 236, 683 


0) 


S 


1937 





I No comparable data. 

6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and size of market account for the concentration. The 
American-made machines are of special designs. Imports are prob- 
ably nil. A substantial reduction of the duty would probably affect 
moderately the import-domestic price situation. 



CUTTING-OFF MACHINES 

1, Description and use. — Cutting-off machines here include small 
metal-cutting band saw and hacksaw machines. 

2, Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 to 7! 


15-7 


I 90-95 


$1, 204, 456 


30 percent. 





• Ranges cited indicate variation in companies, plants, and concentration for the 2 above items. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 30 
percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935. 


$405, 879 
1, 204, 456 




(') 


1937 


(1) 







1 No comparable data available. 



250 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration and tariff policy. — Specialization, side- 
line production, and size of market account for the concentration. 
Imports are probably very small as compared with domestic produc- 
tion. A substantial reduction of the duty would increase imports 
moderately and would lower prices slightly. 



DIE-CASTING MACHINES 



1. Description and -use.— Die-casting machines are used for the 
production of castings from molten metal which is forced into the 
dies imder pressure. Alloy metals with low melting points, such as 
zinc and antimony, are generally used. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


'85 


$530,705 









1 Estimated. 

3. Recent tariff history.— Act of 1913: 15 percent. Act of 1922: 30 
percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


0) 
$530, 706 




(') 


1937 


(') 









> No comparable data available. 

6. Industrial concentration and tariff policy. — Specialization and 
patents account for the present concentration. Most of the patents 
have recently expired. These machines are American specialties. 
Reduction or removal of the duty would have little or no effect on 
the import-domestic price situation. 



DRILLING MACHINES 

1. Description and use. — Drilling machines here include combined 
vertical and horizontal; radial; sensitive, multiple-spindle; horizontal; 
standard vertical; and combination drilling and tapping types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or cciuivalent 


fi to 16 1 


.5-16 


1 76-95 


$12, 293. 606 


30 percent. 







• Ranges cited indicate variation in companies, plants, and concentration for the above types. 



CONCENTRATION OP ECONOMIC POWER 



251 



3. Recent tariff history. — Act of 1913; 15 percent. Act of 1922: 30 
percent. Act of 1930: 30 percent. Present duty: 30 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3,819,947 
12, 293, 606 




(') 


1937 


0) 







' No comparable data available. 

6. Industrial concentration and tariff policy. — Specialization, tecli- 
nical skill, and size of market account for the concentration. Many 
of these machines are heavy, special, costly, precision-type forms of 
equipment. Exports greatly exceed the small volume of imports. 
Reduction of the duty, with the exception of the smaller common 
types of machines, would have little effect on the import-domestic 
price situation. 

DROP HAMMERS 

1. Description and use. — Drop hammers are used to make forgings 
by forcing heated steel parts into impression dies. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


5 


5 


190 


$1, 740, 263 


30 percent. 





3. Recent tariff history.— A.ct of 1913: 15 percent. Act of 1922: 30 
percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$548,415 
1,740,263 


8 


(') 


1937 


(') 







'No comparable data available. 

6. Industrial concentration and tariff policy. — Specialization and size 
of market account for the concentration. Imports are probably nil, 
but similar machines are made abroad. A substantial reduction of 
the duty would probably affect only moderately the import-domestic 
price situation. 

' 16 percent on jig boring machines, Swiss trade agreement, effective February 15, 1936. 



252 



CONCENTRATION OF EXX>NOMIC POWER 
HOBBING MACHINES 



1. Description and use. — Robbing machines cut gears by using an 
appropriately shaped rotating cutting tool. They are designed for 
many different types of work. 

2. Industrial concentration , 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 185 


$3,292,954 


40 percent. 











' Estimated. 

3. Recent tarif history. — Act of 1913: 15 percent. Act of 1922 
30 percent. Act of 1930: 40 percent. Present duty: 40 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3,292,954 


$10,092 
42, 767 


(') 


1937 


(>) 







No comparable data available. 



6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and patents account largely for the concentration. Im- 
ports have a much lower unit value than the domestic machines. A 
substantial reduction of the duty would probably increase imports 
moderately if at all and would lower prices shghtly. 



GEAR-CUTTING MACHINES 



1 . Description and use. — Gear-cutting machines include the generator 
type, which is most commonly used, and other types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larcrest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


'90 


$7,384,948 


40 percent. 







3. Recent tarif history.— Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 40 percent. Present duty: 40 percent. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



253 



Year 


Domestic 
production 


Imports 


Exports » 


1935 


0) 
$7,384,948 




$1,440,635 


1937 


2, 605, 555 







• No comparable data ; 

2 Includes all types of gear cutters. 

6. Industrial concentration and tariff policy. — Specialization and 
technical skill account for the concentration. There is no record of 
imports. A substantial reduction of the duty would probably affect 
imports and domestic prices only slightly. 

GRINDING MACHINES (EXCEPT TOOL AND SNAGGING) 

1. Description and use. — Grinding machines include centerless, 
cylindrical (internal and external), and universal grinders; vertical 
and horizontal surface grinders. They are often precision machines 
used in repetitive processes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




16-U 


175-90 


$20,850,452 









' Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports' 


1935 


$9,402,416 
20, 850, 452 


(') 
(') 


$4,815,881 


1937 . 


9,391,003 











' No comparable data available. 
» Includes tool grinders. 



6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and patents account largely for the concentration. Exports 
are temporarily large because of armament demands abroad. Re- 
duction or removal of the duty would probably have little or no effect 
on the import-domestic price situation. 



254 



CONCENTRATION OF ECONOMIC POWER 
HONING AND LAPPING MACHINES 



1. Description and use. — Honing and lapping machines are used to 
give a smooth finish to cyHnder hners, valves, valve seats, and many 
similar items. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 


9 


96 


$692, 299 


30 percent. 







3. Becent tarif history.— Act of 1913: 15 percent. Act of 1922; 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$413,489 
692, 299 


8 


(') 


1937 


(') 







« No comparable data available. 



6. Industrial concentration and tarif policy. — Experimentation, 
specialization, size of market, and patents account for the concen- 
tration. These products are largely American specialties. A few- 
machines are exported. Elimination of the duty would not affect 
the import-domestic price situation. 



1. Description and use. — Lathes include bench, heavy duty, gap, 
automatic single spindle bar and multiple spindle bar, and turret 
types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 to 13' 


14-13 


•88-100 


s $50, 000, 000 


30 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the above enumerated types . 
> Estimated. 

3. Recent tariff history. —Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF EiCONOMIC POWER 
5. Domestic 'production, imports, and exports. — 



255 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


2 $50, 000, 000 


8 


s 


1937 





' Not available. 

2 Estimated. 

3 Negligible. 

* Not available but large. 

6. Industrial concentration and tariff policy. — Although there are 
approximately 40 lathe-builders, specialization probably accounts for 
the concentration in the above types. Imports are probably negli- 
gible; exports are substantial. Reduction or removal of the duty 
would have only a minor effect on the import-domestic price situation. 

MILLING MACHINES 

1. Description and use. — Milling machines include various power- 
feed types: universal, planer, vertical, automatic, plain; and the 
hand-feed type. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 to 11 ' 


17-11 


1 81-100 


I $19, 685, 925 


30 percent. 





' Ranges cited indicate variation in companies, plants, and concentration among the above listed items. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$6,955,683 
19,585,925 


(■) 


(2) 


1937 


(.') 







■ Not available. 

2 Not available, but large. 



6. Industrial concentration and tariff policy. — Specialization prob- 
ably accounts for the concentration. Actual imports are probably 
small, but potential imports are large, A substantial reduction of the 
duty would probably increase imports slightly and would lower prices 
only moderately. 



256 



CONCENTRATION OF ECONOMIC POWER 
PLANERS 



1. Description and use. — Planers include standard and open side 
types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
numtior 
of plants 


Percent of 
domestic 
production 
by 4 larpest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


.90 


$1, 556, 450 









' Estimated. 

3. Recent tariff history.— Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$552. 99S 
1, 556, 450 


0) 
0) 


(') 


1937 


(') 







' No comparable data available. 



6. Industrial concentration and tariff jjolicy. — Specialization, tech- 
nical skill, and size of market account for the concentration. These 
products are large, heavy, costly machines; probably more adequate 
technically than foreign machines. Removal of the duty would 
have little effect on the import-domestic price situation. 



PORTABLE ELECTRIC DRILLS 

1. Description and use. — Portable electric drills axe powered by 
electricity and are used to drill holes in metal and other materials. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


25 


26 


88 


$4, 152, 509 









3. Recent tariff history.— Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 1 




$2, 556, 080 
4, 152, 509 


(2) 


$948, 536 


1937 


1, 232, 065 







' Electric portable tools. 

» No comparable data available. 



CONCENTRATION OF ECONOMIC POWER 257 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, and some side-line production probably 
account for the concentration. These tools are in large part an 
American specialty. Substantial reduction of the duty or its removal 
would probably increase imports of low-grade tools very little and 
would lower prices slightly, if at all. 

PORTABLE ELECTRIC GRINDERS 

1. Description and use. — Portable electric grinders are powered by 
electricity and are light enough in weight to be manually operated. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 - 


19 


77 


$1,374,959 


30 percent. 



3. Recent tariff history. — Act of 1913: 15 percent. 
30 percent. Act of 1930: 30 percent. Present duty 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Act of 1922: 
30 percent. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 019, 194 
1, 374, 959 


0) 


(?) 


1937 . 


« 







1 No comparable data available. 
' Probably large. 

6. Industrial concentration and tariff policy. — Speciahzation, stand- 
ardization, economies of large-scale production probably account for 
the concentration. Imports are nil or negligible. These products are 
an American specialty. Reduction or removal of the duty would 
have little effect on the import-domestic price situation. 

PORTABLE PNEUMATIC GRINDERS 

1. Description and use. — Portable pneumatic grinders are operated 
with compressed air. They are used for various types of grinding. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


185 


$1,001,585 


30 percent. 







258 CONCENTRATION OF EKXKNOMIC POWER 

3. Recent tariff history . — Act of 1913: 15 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1835 - - 


$486,477 
1,001,585 


8 




1937 





' Not available. 

6. Industrial concentration and tariff j^olicy. — Specialization, some 
side-line production and size of market account for the concentration. 
Since these machines are American specialties, imports arc probably 
nil. Reduction or removal of the duty would not affect the import- 
domestic price situation. 

PORTABLE PNEUMATIC DRILLS AND HAMMERS 

1. Description and use. — Portable pneumatic drills and hammers 
are operated by compressed air. They are used for drilling rock and 
concrete, and for riveting and calking. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


etc 10' 


16-10 


1 90-96 


m, 521, 071 


30 percent. 





• Ranges cited indicate variation in companies, plants, and concentration for the above products. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports ' 


1935 


$3, 363, 280 

1, .121,071 


0) 


$703,063 


1937 











' No comparable data available. 
' All pneumatic tools. 

6. Industrial concentration and tariff policy.- — Specialization and 
technical skill account for the concentration. These products are 
American specialties of intricate and precise construction. Reduction 
or removal of the duty would have very little, if any, effect on the 
import-domestic price situation. 



CONCENTRATION OF ECONOMIC POWER 
FLEXIBLE SHAFT MACHINES 



259 



1, Description and use. — Flexible shaft machines include numerous 
types of portable power equipment, such as hair-clippers, grinders, 
circular files, and sanding discs. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



$547, 565 



Tariff status in 1937: 
Free, ad valorem, 
rate, or equivalent 



35 percent. 



3. Recent tariff history. — Act of 1913: 20 percent. Act of 1922: 
30 percent. Act of 1930: 35 percent^ or 30 percent,^ or 27}2 per- 
cent. Present duty: 25 percent.* 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$477, 860 
547, 565 


8 


0) 


1937... 





' No comparable data available but exports are large. 

6. Industrial concentration and tariff policy. — Specialization, and 
technical skill account for the concentration. These machines are 
mostly American specialties. A substantial reduction of the duty 
would have very little effect on the import-domestic price situation. 

SHEARS AND PUNCH PRESSES 

1. Description and use. — Shears include power types (alligator, 
rotary, and combination punch and shear) and straight shears. Also 
included here are punch presses. 

2. Industrial concentration. 1937. — 



Total number of companies 


Total 
number 

of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 to 17 ' 


'9-17 


17&-95 


$5,673,158 


40 percent. 





' Variation in companies, plants, and concentration for composite items. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent and 40 percent.^ Present duty: 
30 percent and 40 percent. 

' If containing an essential electrical element. 

' If using a tool to work on metal. 

« United Kingdom trade agreement, effective January 1, 1939. 

■ Duty on punches, shears, and bar cutters for fabricating st«el shapes. 



260 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. 



Year 


Domestic 
production 


Imports • 


Exports 


1935 


» $1,366, 322 
5, 673, 158 


$3,823 
41,203 


(') 


1937 


(') 







» Punches, shears, and bar cutters for steel shapes only. 
' Punch presses not included. 
* No comparable data. 

6. Industrial concentration and tariff policy. — Specialization and 
engineering skill account largely for the concentration. A substantial 
reduction of the duty would probably increase moderately imports 
of certain types and would lower prices for them. Imports of other 
types, such as rotary and flying shears, would probably not be 
affected. 

THREADING M.\CHINES 

1. Description and use. — Threading machines include die, rolling; 
milling; tapping; pipe cutting and threading, single and multiple head 
types. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




13-11 


185-100 


2 $4,000,000 


30 percent. 







1 Ratiges'cited indicate variation in companies, plants, and concentration among the types listed above. 
' Estimated. 

3. Recent tariff history.— Act of 1913: 15 percent. Act of 1922: 30 
percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports 


1935 


'$4,000,000 




(') 


1937 - 


(») 







1 Not available. 

' Not available, but large. 

3 Estimated. 



6. Industrial concentration and tariff policy. — Specialization by a 
few of the threading machine builders (approximately 30) accounts 
largely for the concentration. Basic patents have expired. A sub- 
stantial reduction of tlie duty would probably increase imports only 
moderately and would lower prices slightly. 



CONCENTRATION OF ECONOMIC POWER 
MACHINE TOOL ACCESSORIES 



261 



1 . Description and use. — Machine-tool accessories include drill, lathe, 
and magnetic chucks; vises; lathe and drilling; boring and milling-ma- 
chine attachments; and semifinished special attachments. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 to 211 _ 


16-26 


1 77-100 


$9, 965, 631 


30 percent. 





1 The ranges cited indicate variation in companies, plants, and concentration for the above classes. 

3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
30 percent. Act of 1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


I $5, 676, 577 
9, 965, 631 


(2) 
(2) 


(2) 


1937._ 


{') 







1 Not strictly comparable with 1937. 

2 Probably negligible. 

6. Industrial concentration and tariff policy. — Specialization, ex- 
perience, and quality of product are important factors in an explana- 
tion of the concentration. These products are mainly American 
specialties made to fit American-made machines. A substantial 
reduction of the duty would have little or no effect on imports. 

GEAR CUTTERS (OTHER THAN HOBBING) 

1. Description and use. — Gear cutters are the actual cutting tools 
which are used in gear-cutting machines. 

2. Industrial concentration, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


92 


$2,317,867 


50 and 60 percent. 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent; 60 percent if containing specified alloys. Act of 
1930: 50 percent; 60 percent if containing specified alloys. Present 
duty: 50 percent; 60 percent if containing specified alloys. 



262 



CONCENTRATION OF EOONOMIC POWER 



4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2,317,867 




(2) 




W 







» Not available. 

» Not separately reported, but small. 

6. Industrial concentration and tariff policy. — Production by a few- 
large manufacturers accounts largely for the concentration. Removal 
of the duty would probably have only a moderate effect on the import- 
domestic price situation. 

CUTTING TOOLS 

1. Description and use. — Cutting tools for lathe, planer, and shaper 
tools, both carbon and high-speed steel and tungsten-carbide tipped ; 
also tungsten-carbide milling cutters. It does not include high-speed 
steel milling cutters the production of which was valued at $9,000,000 
in 1937. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 to 16 ' 


1 12-16 


1 84-88 


$2, 168, 703 


50 and 60 percent. 







1 Range cited indicates variation in companies, plants, and concentration for the above products. 



3, 



Recent tariff history. — Act of 1913: 20 percent ad valorem, 



of 1922: 40 percent; 60 percent if containing specified alloys. Act 
of 1930: 50 percent; 60 percent if containing specified alloys. Present 
duty: 50 percent; 60 percent if containing specified alloys. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




0) 
$2,168,073 




(») 


1937 . 


(«) 







1 Not available. 

» Not separately reported, but probably small. 



6. Industrial concentration and tariff policy. — Production by a few 
large manufacturers accounts largely for the concentration. Removal 
of the duty would have little or no effect on the import-domestic 
price situation. 



CONCENTRATION OF ECONOMIC POWER 263 

THREADING TOOLS 

1. Description and use. 

Threading tools include carbon, high speed and self-opening dies, 
collapsible and noncollapsible taps, tap and die chasers, and pipe stock 
with dies. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 to 28 ' 


13-28 


1 82-100 


$8,300,000 


50 percent. 





' Ranges cited indicate variation in companies, plants, and concentration for the above 8 classes. 

"i. Recent tariff history.— AdtoiX^l?,: 20 percent. Act of 1922: 
40 percent.^ Act of 1930: 50 percent.^ Present duty: 50 percent.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$5,200,000 
8,300,000 


Negligible... 
do.. 


0) 


1937 


(1) 







1 Not reported separately, probably about $100,000 annually. 

6. Industrial concentration and tariff policy. — Specialization in the 
manufacture of metal-cutting tools accounts largely for the concentra- 
tion. There is little or no import trade partly because of varying 
thread standards used in different countries. A substantial reduction 
of the duty would tend to have only a minor effect on imports and 
prices. 

PRECISION MEASURING TOOLS (MICROMETER AND VERNIER) 

1. Description and use. — 

Tools of this type include primarily certain kinds of calipers and 
gages for accurate measuring. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


97 


$1, 581, 165 


45 percent. 







If containing specified alloys, 60 percent. 



1—41— No. 10- 



264 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff histonj.— Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 45 percent ad valorem. 
Present duty: 45 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,182,576 
1, 581, 165 


(0 


(') 


1937 


(') 







1 Not separately reported, probably small. 

6. Industrial concentration and tariff policy. — Some specialization, 
production by a few large manufacturers, and limited markets account 
largely for the concentration. Imports consist of high-grade products. 
A substantial reduction of the duty would probably increase imports 
moderately and would lower prices slightly. 

COUNTERBORES 

1. Description and use. — Counterbores are small cutting tools 
which are used to make recesses for imbedding heads of screws, bolts, 
etc. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


28 


28 


86 


$1,058,200 


50 percent. 







3. Recent tarif history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem.^ Act of 1930: 50 percent ad valorem." 
Present duty: 50 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$507, 095 
1, 058, 200 


(1) 


(') 


1937 - 


(') 







' Imports small; exports probably negligible. 

6. Industrial concentration and tari;ff policy. — Production of a few 
large companies manufacturing several kinds of tools account for the 
concentration. Marketing facilities for a fidl line tend to confine this 
product primarily to domestic trade. Removal of the duty would 
have little or no effect on the import-domestic price situation. 



If containing certain alloys, 60 percent. 



GROUP K: ELECTRICAL MACHINERY, EQUIPMENT, AND RELATED 
PRODUCTS 

ELECTRIC GENERATORS AND CONVERTERS 

1. Description and use. — Electric generators and converters are 
rotating machines for producing electricity, ranging from the small 
machines carried on automobiles to large machines used in power 
stations, driven by steam turbines or water wheels. Motor-generator 
sets and dynamotors, amounting to $5,523,605 in 1937, are not 
included. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 to 47 1 


19-51 


175-100 


$83, 311, 482 


35 percent. 







> Ranges cited indicate variation in companies, plants, and concentration in the various types included. 

3. Recent tarif history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, im^jports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 -. -- 


$40,976,000 
83, 311, 482 


$16, 437 
2,215 


$1, 898, 187 




4,987,090 







6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and economies of large-scale production account, largely, 
for the concentration. Differences in standards, contractual selling, 
and some international agreements partially restrict imports. Re- 
moval of the duty would probably have only a moderate effect on the 
import-domestic price situation. 



TRANSFORMERS 



1. Description and use. — Included are the following: Distribution 
(K to 500 kv. = a.), power (501 kv. = a. and over), and miscellaneous 
transformers; and other types of related apparatus, such as reactors 
and boosters. 



United Kingdom Trade Agreement, effective January 1, 



265 



266 CONCENTRATION OF BCH>NOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 to 28' - --- 


1 13-30 


I 90-96 $77. 137. 994 













1 Ranges cited Indicate variation In companies, plants, and concentration for the above types. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$25, 075, 000 
77, 137, 994 


$646 
60, 913 


$717, 648 


1937 


1,507,987 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production, technical skill, and contractual selling account, 
largely, for the concentration. Variations in standards and specifica- 
tions are an obstacle to imports. Removal of the duty would probably 
have only a moderate effect on the import-domestic price situation. 

ELECTRICAL CIRCUIT BREAKERS (OIL AND AIR) 

1. Description and use. — Electrical circuit breakers are switches 
used to open and close electric circuits, some of them being so con- 
structed as to break the circuit when the current exceeds a certain 
value. Included are air, and outdoor and indoor oil circuit breakers. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5 to 10 ' 


■8-12 


190-97 


$18,161,862 


35 percent. 







• Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

2 United Kingdom Trade Agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic 'production, imports, and exports. — 



267 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$7, 042, 000 
18,161,862 


(0 


$954, 043 


1937 


1,491,612 







1 Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, technical skill, contractual selling along with related 
items account largely for the concentration. Removal of the duty 
would probably have only a slight effect on the import-domestic price 
situation. 

electric-control equipment (relays, switchboards, lightning 
arresters) 

1. Description and use. — Electric-control equipment includes relays 
and regulators (excluding industrial motor control and telephone), 
power switchboards and parts, and lightning arresters (except radio 
and telephone). 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariS status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 to 31 ' 


19-35 


190-99 


$29, 235, 295 


35 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Becent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent and 40 percent ad valorem, depending on kind. 
Act of 1930: 35 percent ad valorem. Present duty: 35 percent ad 
valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 -- 


$12, 543, 330 
29,235,295 


(0 
(1) 


$819, 230 


1937 - 


1, 199, 124 







6. Industrial concentration and tarff policy. — Economies of large- 
scale production, technical skill, and contractual selling account 
largely for the concentration. Large unit installations which include 
these products along with many others are an obstacle to imports. 
Removal of the duty would have little effect on the import-domestic 
price situation. 



268 CONCENTRATION OF E^-ONOMIC POWER 

LINK AND RENEWABLE FUSES AND CUT-OUTS 

1. Description and use. — Fuses are short lengths of easily fusible 
wire inserted in electric circuits. The renewable type (250-600 volts) 
are used by large commercial and industrial establishments. Cut-outs 
are the porcelain bases that hold the fuses. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Tereont of 
domestic 
production 
by 4 lareest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




14 


1 78-87 


$7, 807, 450 









1 Ranges cited indicate variation in companies and concentration for the above types. 

3. Recent tarif history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$4, 777, 271 
7, 807, 450 


(') 


(') 


1937 


(0 







1 Not available. 

6. Industrial concentration and tariff policy. — Production by the large 
manufacturers of electrical equipment, marketing facilities, and size of 
market account largely for the concentration. Removal of the duty 
on these types of fuses would have only a minor effect on the import- 
domestic price situation. 

WATT-HOUR METERS (ALTERNATING CURRENT) 

1. Description and use. — Watt-hour meters are used by electric- 
power companies to measure output, consumption, and sales to cus- 
tomers. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


4 -- 


5 


100 


$21, 249, 268 


50 percent.' 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922 : 45 percent plus specific duties depending on value and number 
of jewels. Act of 1930: 65 percent, specific duties from 55 cents to 



CONCENTRATION OF ECONOMIC POWER 



269 



$4.50, and 25 cents per jewel. Present duty: 32}^ percent plus specific 
duties from 27K cents to $2.25 each, plus 12}^ cents per jewel.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$11,832,835 
21, 249, 268 


(') 


(0 




(') 







6. Industrial concentration and tariff policy. — Specialized large-scale 
production, contractual selling, and patents probably account for the 
concentration. The recent reduction of the duty is likely to have very 
little effect on the import-domestic price situation. Removal of the 
duty would probably increase imports moderately and would lower 
prices slightly. 

MINIATURE ELECTRIC METERS (3>^ INCH AND UNDER) 

1. Description and use. — Miniature electric meters are used for 
automobile testing and other work not requiring high accuracy. 
Meters installed on motor vehicles are not included. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 

of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarifT status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


185 


$1,958,000 


57 percent.' 


• 





3. Recent tarif history. — Act of 1913: 20 percent ad valorem. Act 
of 1922 : 45 percent plus specific duties depending on value and number 
of jewels. Act of 1930: 65 percent plus specific duties from 55 cents 
to $4.50, plus 25 cents per jewel. Present duty: 32K percent plus 
specific duties from 27)^ cents to $2.25, plus 12K cents per jewel.^ 

4. Average ad valorem equivalent. —^ one,. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 751, 000 
1, 958, 000 


0) 


(') 


1937 .. - .-. 


(') 







' Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, and limited market account largely for the concentra- 
tion. The recent reduction of the duty is likely to have only a moder- 
ate effect on the import-domestic price situation. 

3 Swiss Trade Agreement, effective February 15, 1936. 



270 



COXCENTIIATION OF E€ON0MIC POWER 
INSTRUMENT AND METER TRANSFORMERS 



1. Description and use. — Instrument and meter transformers are 
widely used, principally for the measurement of currents and voltages 
in power mains too great to be passed directly through meters. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


16 


17 


•85 


$5,217,745 


35 percent. 





3. Recent tarif history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem 
Present duty: 25 percent ad valorem.* 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 090, 000 
5, 217, 745 


(0 


$148 951 


1937 


121, 603 







' Not available. 



6. Industrial concentration and tarif policy. — Specialized production 
on a large scale by the large manufacturers of meters, contractual 
selling, and limited market account largely for the concentration. 
Removal of the duty would have only a minor effect on? the import- 
domestic price situation. 



INSULATED WIRE 



1. Description and use. — The insulated wire under review includes 
three important types : (1) Asbestos insulated, (2) paper insulated, and 
(3) rubber-insulated telephone wire. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 to 16! 


I 17-18 


1 81-90 


$49, 512, 082 









' Ranges cited indicate variation in companies, plants, and concentration for the above types. 

3. Recent tarif history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 35 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

* United Kingdom Trade Agreement, effective January 1, 1939. 



CONCENTEATION OF ECONOMIC POWER 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and erports. — 



271 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$15, 780, 971 
49, 512, 082 




(2) 


1937 


(2) 





1 Not available, probably small. 

' Not available, probably substantial. 

6. Industrial concentration and tariff policy. — Specialization and pro- 
duction by a few large companies which make related products account 
for the concentration. Removal of the duty would have little or no 
effect on the import-domestic price situation. 



ELECTRICAL APPLIANCE AND EXTENSION CORDS 

1 . Description and use. — Appliance and extension cords are insulated 
wire with special end attachments to connect electrical appliances with 
the usual building outlets. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 


18 


88 


$4, 285, 407 


35 percent. 





3. Recent tarif history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$4, 285, 407 


(>) 


(^) 


1937 _ 


V) 







' Not available. 

2 Not separately reported, but small. 

6. Industrial concentration and tariff policy. — Some specialization 
and side-line production by the large manufacturers of various types 
of related electrical equipment probably account for the concentration. 
Standards for electrical equipment vary in different countries. Full- 
line marketing facilities are important. Removal of the duty would 
probably have only a very moderate effect on the import-domestic 
price situation. 



272 



CONCENTRATION OF ECONOMIC POWER 



BRASS SHELL SOCKETS 



1. Description and use. — Brass sockets are the shells into which 
electric lamps are inserted. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariS status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 . . 


18 


76 


$4,930,037 


35 percent. 





3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 543, 000 
4, 930, 037 


0) 


{') 


1937. 


(') 







Not available. 



6. Industrial concentration and tariff policy. — Some specialization 
production by a few large manufacturers of electrical equipment, and 
economies of large-scale production account for the concentration. A 
substantial reduction of the duty would increase imports moderately 
and would lower prices slightly. 



FLEXIBLE METAL CONDUIT 



1. Description and use. — Flexible metal conduit is made of inter- 
locking strips of galvanized steel. It is used for enclosing insulated 
copper wire which transmits electricity within buildings. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



30 percent. 



3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



CO>'CENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



273 



Year 


Domestic 
production 


Imports • 


Exports 


1935 


$249,000 
1,881,000 


$39,000 
49,000 


(2) 


1937 . 


(2) 







' Flexible metal tubing of all types. 
2 Not available. 

6. Industrial concentration and tariff policy. — Specialization and 
economies of large-scale production probably account for the con- 
centration. Imports consist mainly of gas tubing. A substantial 
reduction of the duty would probably increase imports moderately 
and would lower prices slightly, 

ELECTRIC MOTORS (FRACTIONAL HORSEPOWER) 

1. Description and use. — Fradtional-horsepower motors range from 
)io to 1 horsepower. Included here are universal, split phase, poly- 
phase, and some miscellaneous types. 

2. Industrial concentration, 1927. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15 to 33 1 


1 16-35 


176-92 


$37, 940, 991 


35 percent. 







1 Ranges cited Indicate variation in companies, plants, and concentration for the above types. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$24,114,473 
37, 940, 991 




(') 


1937 


(') 







Not available. 



6. Industrial concentration and tarff policy. — Some specialized pro- 
duction by a few large manufacturers of electrical equipment, and 
establishment of brands account largely for the concentration. Re- 
moval of the duty would have only a minor effect on the import- 
domestic price situation. 



United Kingdom trade agreement, effective January 1, 1939. 



274 CONCENTRATION OF EOONOMIC POWER 

ELECTRIC MOTORS (1 TO 200 HORSEPOWER, DIRECT CURRENT) 

1. Description and use. — Electric motors of this type are required 
when the source of electricity is direct rather than alternating current. 
The sizes included are those from 1 to 200 horsepower. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 larfjest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


40 


43 


79 


$13, 227, 847 


35 percent. 







3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem.® 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 .. . 


$6,306,000 
13, 227, 847 




(') 


1937 


(1) 







' Not available. 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion on a moderate scale, production by a few large manufacturers of 
electrical equipment, and establishment of brands account largely for 
the concentration. Imports are probably influenced by informal 
agreements among producers in various countries. Removal of the 
duty would probably have only a minor effect on the import-domestic 
price situation. 



POLYPHASE INDUCTION MOTORS (ALTERNATING CURRENT; OVER 200 
HORSEPOWER) 

1. Description and use. — Polyphase induction motors are used 
where polyphase alternating current is available. They are the most 
widely used of the various types of electric motors. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


n 


11 


93 


$2, 941, 722 


35 percent. 







' United Kingdom trade agreement, eSective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 



275 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 25 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1936 - - 


$1,439,978 
2,941,722 


0) 


(') 
(0 


1937 





■Not available. 

6. Industrial concentration and tariff ^^o^icy.— Specialized production 
on a large scale, production by large manufacturers of electrical 
equipment, and establishment of brands account largely for the con- 
centration. Informal agreements among producers in various 
countries probably limit imports. A substantial reduction of the 
duty would have only a minor effect on the import-domestic price 
situation. 

ELECTRIC MOTORS (OVER 200 HORSEPOWER; SYNCHRONOUS) 

1. Description and use. — Electric motors of the synchronous type 
are being used to an increasing extent because of certain characteristics 
adapted to various purposes where alternating current is available. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Fr6e, ad valorem 
rate, or equivalent 


7 


8 


.» 


$3, 307, 087 


35 percent. 







3. Recent tariff history.— Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 25 percent ad valorem.^ 

4. Average ad valorem equivalent . — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 307, 087 




(') 


1937 . 


(') 







1 Not available. 

" United Kingdom trade agreement, eflfective January 1, : 



276 



CONCENTRATION OF ECONOMIC POWER 



6. Industrial concentration and tarijff policy. — Specialized production, 
technical skill, and size of market probably account for the con- 
centration. Imports are probably influenced by informal agreements 
among producers in various countries. Removal of the duty would 
probably have onl}^ a minor effect on the import-domestic price 
situation. 

ELECTRIC MOTOR CONTROL APPARATUS 

1. Description and use. — Electric motor control apparatus is used 
for starting, stopping, and regulating the speed of electric motors. 
Included here are industrial magnetic types for direct-current motors 
and industrial manual types for alternating-current motors. 

2. Industrial concentration, 1937. — • 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1S37: 
Free, ad valorem 
rate, or equivalent 


14 and 18' 


f 116 
1 121 


■85 
■ 95 


} $9,584,911 









Act 



« Variation in companies, plants, and concentration for the above types. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. ___ 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$5, 238, 000 
9,584,911 


8 


(1) 


1937 - 


(1) 







' Not available. 

6. Industrial concentration and tariff policy. — Some specialization 
and production by a few large manufacturers of electrical equipment 
account largely for the concentration. A substantial reduction of the 
duty would probably increase imports moderately and would lower 
prices slightly. Imports are now very small. 



AUTOMOTIVE STARTER-MOTORS 

1. Description and use. — Automotive starter-motors are small 
electric types, operated by the automobile storage battery, which are 
employed to turn over the engine in starting. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


7 


190 


$20, 540, 118 


25 percent. 







CONCENTRATION OF ECONOMIC POWER 



277 



3. Recent tarif history. — Act of 1913: 30 percent ad valorem. Act 
of 1922: 25 percent ad valorem. Act of 1930: 25 percent ad valorem. 
Present duty: 25 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




(') 
$20, 540, 118 


$2, 120 


8 


1937 





6. Industrial concentration and tariff policy. — Specialization by one 
large company and production by the automobile companies and their 
affiliates account largely for the concentration. Removal of the duty 
would have little or no effect on the import-domestic price situation. 

IGNITION EQUIPMENT FOR INTERNAL COMBUSTION ENGINES 

1 . Description and use. — Ignition equipment for internal combustion 
engines includes spark plugs, ignition coils, distributors, and magnetos. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7-30'. 


17-30 


'80-90 


$58. 200, 583 









' Ranges cited indicate variation in companies, plants, and concentration for the above items. 
2 Estimated. 

3. Recent tariff history.— Act of 1913: 20 percent. Act of 1922: 
30 or 40 percent. Act of 1930: Free, 25, 30, 35 percent ad valorem, 
depending on use. Present duty: Free, 25, 30, 35 percent ad valorem, 
depending on use.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$40, 527, 691 
58. 200, 583 


(1) 
(') 


$2, 803, 259 


1937 


3,141,858 







' No comparable data available. 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, contractual selling, and establishment of brands 
account largely for the concentration. A substantial reduction of the 
duty would have little or no effect on the import-domestic price situa- 
tion. 



* The 35-percent rate was reduced to 25 percent by the United Kingdom trade agreement, effective 
January 1, 1939. 



278 



CONCENTRATION OF ECONOMIC POWER 
WET PRIMARY BATTERIES 



1. Description and use. — Wet primary batteries are used for sup- 
plying a small current over a long period in places not easily supplied 
from power systems, such as for railroad signaling, and isolated 
signaling purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



35 percent. 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




(■) 
$3, 102, 318 


(0 


0) 




('■) 







6. Industrial concentration and tariff policy. — Specialized produc- 
tion and limited market probably account for the concentration. A 
substantial reduction of the duty would have little or no effect on the 
import-domestic price situation. 



DRY BATTERIES 



1. Description and use. — Dry batteries include the 6-inch, l}2-volt 
type and all other such as those used for flashlights, small telephone 
systems, bell ringing, and in certain types of radio sets. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 and 14 


{ i; 


80 
91 


} $20, 679, 878 


35 percent. 







3. Becent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF ECONOMIC POWER 
5. Domestic production, imports, and exports. — 



279 



Year 


Domestic 
production 


Imports 


Exports » 


1935 


$15, 307, 154 
20, 679, 878 


$10, 319 
1,713 


$2, 541, 993 


1937 . . 


3, 552. 931 







1 A few minor items omitted. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, technical skill, and establishment of brands account 
largely for the concentration. A substantial reduction of the duty- 
would increase imports primarily of the smaller, cheaper types and 
would lower their prices slightly. 

FLASHLIGHT CASES 

1. Description and use. — Flashlight cases include all types of cases 
used to enclose the batteries of the various sizes of flashlights. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$5, 772, 351. 



35 percent. 



3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 . .. 


$3, 571. oon 
5, 772, 351 


(1) 
$49,692 


$696, 364 




918, 320 







' Not separately reported. 

6. Industrial concentration and tariff policy. — Specialization and 
marketing facilities account largely for the concentration. Iniports 
consist mostly of low-priced, small cases. A substantial reduction of 
the duty would increase imports, especially of the cheaper grades, 
and would lower prices slightly. 

INCANDESCENT FILAMENT LAMPS (SMALL TUNGSTEN) 

1. Description and use. — Small electric lamps are designed to oper- 
ate on extremely low voltages. They consist mainly of lamps for 
automobiles, flashlights, and Christmas trees. 



257771— 41— No. 10- 



280 CONCENTRATION OF ECONOMIC POWER 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


QtolSi 


I 12-18 


190-94 


$14. 783. 000 


21) percent. 



• Ranges cited indicate variation in comparics, plants, and concentration for the types included. 

3. Recent tariff history. — Act of 1913: 30 percent ad valorem. Act 
of 1922: 20 percent ad valorem. Act of 1930: 20 percent ad valorem. 
Present duty: 20 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$10, 954, 000 
12,171,000 


$432, 000 
538, 000 


$228 000 


1937 









6. Industrial concentration and tariff policy. — Since two companies 
produce nearly all the light bulbs, one a patent licensee of the other, 
concentration also appears in the production of lamps. Domestic 
production consists largely of automobile lamps (75 percent) ; imports 
are mainly Christmas-tree and flashlight lamps; exports consist of all 
types. Imported lamps are cheaper and probably are inferior. Re- 
duction or removal of the duty would have only a moderate effect on 
imports and domestic prices. 

INCANDESCENT FILAMENT LAMPS (LARGE TUNGSTEN) 

1. Description and use. — Large electric lamps (110 to 120 volts 
and 7}i to 1,500 watts) are practically all made with tungsten fila- 
ments. They are used for general lighting in homes, builduigs, etc. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15 


24 


190 


$59, 137, 000 


20 percent. 





3. Recent tariff history. — Act of 1913: 30 percent ad valorem. Act 
of 1922: 20 percent ad valorem. Act of 1930: 20 percent ad valorem. 
Present duty: 20 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imjjorts, and exports. — 



281 



Year 


Domestic 
production 


1 
Imports Exports 

1 


1935 


$50,490,000 
59, 137, 000 


$544, 000 
373, 000 




1937 









6. Industrial concentration and tariff 'policy. — Since two companies 
produce nearly all the light bulbs, one a patent licensee of the other, 
concentration also appears in the production of lamps. Imported 
lamps are cheaper and probably are inferior. Reduction or removal 
of the duty would have no appreciable effect on imports and domestic 
prices. 

VAPOR LAMPS 

1. Description and use. — Vapor lamps include types such as mercury 
vapor, sodium vapor, and neon vapor. They are used principally in 
industrial lighting, and highwaj^ and other outdoor lighting. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
prouction 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 


15 


195 


$3, 587, 798 


20 percent. 







2 companies account for about 90 percent. 



3. Recent tarijff history. — Act of 1913: 30 percent ad valorem. 
Act of 1922: 20 percent ad valorem. Act of 1930: 20 percent ad 
valorem. Present duty: 20 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Ye[.r 


Domestic 
production 


Imports 1 Exports 


1935 


$2,071,511 
3, 587, 798 


$6,074 1 (1) 


1937 __ .__ 


7,621 ' (1) 




1 



' Not reported separately, but known to be negligible. 



6. Industrial concentration and tarirff policy. — Patent control and 
licensing agreements account for the concentration in production. 
Imports are negligible and consist largely of small neon vapor lamps 
and other types not ordinarily produced in the United States. Re- 
duction or removal of the duty M^ould have very little effect, if any, 
on imports and domestic prices. 



282 



CONCENTRATION OF BOONOMIC POWER 
CARBON AND GRAPHITE ELECTRODES 



1. Description and use. — Carbon and graphite electrodes are types 
of electrical equipment. They are used in electrolytic work, such as 
the manufacture of caustic soda and chlorine. 

2. Industrial concentration, 1937 . — 



Total Eumber of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


7 


'99 


2 $8, 000, 000 


30 percent. 





' 1 company accounts for about ! 
* Estimated. 



percent. 



3. Recent tari_ff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 45 percent ad valorem. Act of 1930: 45 percent ad valorem. 
Present duty: 30 percent ad valorem.^ 

4. Average ad valorem equivalent.- — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - - 


(') 
2$8,000.000 


$706 
None. 




1937 


3, 443, 705 







' Not available. 

» Estimated and excludes large production of s 



1 aluminum company for its use. 



6. Industrial concentration and tariff policy.- — Economies of large- 
scale production, availability of cheap power, and financial integration 
largely account for the concentration. A substantial reduction of the 
duty would have little effect on the importation of graphite electrodes, 
and would probably increase only moderately imports of carbon 
electrodes. 

CARBON AND GRAPHITE ELECTRODES LIGHTING CARBONS 

1. Description and use. — Lighthig carbons are made of petroleum 
coke, lampblack, and retort carbon. They are used in moving-picture 
projectors, searclilights, and therapeutic lamps. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


i:.. 


• 2 


I 100 


I $2, 500, 000 









> Estimated. 

• French trade agreement, effective June 15, 1936. 



CONCENTRATION OF ECONOMIC POWER 



283 



3. Recent tariff history. — Act of 1913: 15 cents per 100 feet and 30 
percent ad valorem. Act of 1922: 45 percent ad valorem. Act of 
1930: 45 and 60 percent ad valorem, according to size. Present duty: 
30 and 40 percent ad valorem, according to size.^° 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 




$24, 609 
16, 375 


(0 
$287, 823 


1937 


' $2, 500, 000 





1 Not avaOable. 

2 Estimated. 

6. Industrial concentration and tariff policy. — Specialization, involv- 
ing continuous and extensive research, and financial integration 
account for the concentration of production. The American product 
is of better quality than foreign products. A substantial reduction 
in the duty would probably affect imports and domestic prices 
appreciably. 

X-RAY APPARATUS AND TUBES 

1. Description and use. — X-ray apparatus provides and controls 
the type of electric power required for X-ray tubes; the X-ray tubes 
included are those for general medical purposes, other than rectifying. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 and 12 


10 and 12 


85 and 88 


$10. 149, 541 


17H percent. 





3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 17}^ percent ad valorem.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports 


1935.. 


(>) 
$10, 149, 541 


$198,000 
185,000 


(1) 


1937... 


> $1, 660 804 







■ Not available. 

2 Includes all X-ray tubes. 



10 French trade agreement, effective June 15, 1936. 

'1 Netherlands Trade Agreement, effective February 1, 1936. 



284 CONCENTRATION OF ECONOMIC POWER 

6. Indiistrial concentration and tari^ policy. — Specialized production, 
technical skill and research, service facilities, and size of market account 
largely for the concentration. The former principal importer now 
makes tubes. A large Dutch electrical firm has a branch plant in the 
United States. The recent reduction of the duty is likely to increase 
imports and to lower prices slightly. 

ELECTRIC FURNACES AND HEATERS 

1. Description and use. — Electric furnaces and heaters are used for 
industrial purposes requiring high temperatures. They include re- 
sistance types, strip, space, and ring heaters, and arc furnaces. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 to 211 


1 13-21 


1 76-93 


$5, 100, 269 









' Ranges cited indicate variation in companies, plants, and concentration for the kinds above enumerated. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 436, 676 
5, 100, 269 


$37, 375 
1,245 


$398, 195 


1937 . . - 


835, 698 







6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and contractual production account largely for the con- 
centration. Removal of the duty would probably affect only very 
moderately the import-domestic price situation with regard to the 
more standardized types of equipment. 

MOTOR-DRIVEN WELDING APPARATUS, DIRECT CURRENT 

1. Description and use. — Motor-driven welding apparatus is used 
in arc welding. Such apparatus supplies direct current from a genera- 
tor driven by motor. Included also are the necessary control equip- 
ment, cables, and electrodes. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$5, 902. 202 35 percent. 



" United Kingdom Trade Agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 285 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 308, 000 
5, 902, 202 


(0 
(0 


(!) 


1937... 


(') 







1 Not available. 

6. Industrial concentration and tariff policy. — Specialization, and 
limited market account largely for the concentration. Removal of 
the duty would have little or no effect on the import-domestic price 
situation. 

ELECTRIC STORAGE WATER HEATERS 

1. Description and use. — Electric storage water heaters are used for 
maintaming a supply of hot water for domestic and other purposes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 

number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


15 


18 


79 


$5, 391, 785 









3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 862, 000 
5, 391, 785 




« 


1937 - 


(') 







Not available. 



6. Industrial concentration and tariff policy. — Specialization, some 
side line production by the large manufacturers of electrical equipment, 
and establishment of brands account largely for the concentration. 
Removal of the duty would have only a very moderate effect on the 
import-domestic price situation. 



ELECTRICAL HOUSEHOLD EQUIPMENT 

1. Description and use. — Electrical household equipment includes 
here the following items: Standard automatic flatirons, under 5 
pounds; automatic toasters; mixers and whippers. 

'3 United Kingdom trade agreement, eflective January 1, 1939. 



286 CONCENTIIATION OF ECX)NOMIC POWER 

2. Industrial concentration, 19S7. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status In 1937: 
Free, ad valorem 
rate, or equivalent 


16 


16 


85 


$14, 917, 206 


35 and 40 percent. 



3. Recent tariff history. — Act of 1913: 20 to 45 percent, depending 
on tariff classification. Act of 1922: 30 or 50 percent, depending on 
tariff classification. Act of 1930: Mainly 35 and 40 percent, depending 
on tariff classification. Present duty: Mainly 35 and 40 percent, 
depending on tariff classification. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935. 


$14, 917, 206 


s;i 


(') 


1937 . 


(') 







> Not available. 

6. Industrial concentration and tariff policy. — Specialization, pro- 
duction by large manufacturers of a full line of similar equipment, and 
establishment of brands account largely for the concentration. Im- 
ports are relatively small and consist mostly of standardized articles. 
A substantial reduction of the duty would probably increase imports 
moderately and lower prices slightly on the standardized types. 



ELECTRIC WRINGERS, DRIERS, AND EXTRACTORS 

1. Description and use. — Electric wringers, driers, and extractors are 
household laundry devices used in drying clothes. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


10 


190 


$3, 673, 199 









3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2,482,000 
3, 673, 199 


None 
None 


(') 


1937 


(') 







« Not available. 



CONCENTRATION OF ECONOMIC POWER 



287 



6. Industrial concentration and tariff policy. — Specialization, produc- 
tion by large manufacturers of electric equipment, and contractual 
selling to washing machine manufacturers account for the concentra- 
tion. Removal of the duty would have little or no effect on the import- 
domestic price situation. 

HOUSEHOLD ELECTRIC RANGES 

1. Description and use. — Household electric ranges are the type 
used in domestic kitchens, the heating furnished by electric resistance 
units. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TariS status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


' 


•90 


$23, 742, 816 


25 percent ' 







1 Estimated. 

' First Canadian trade agreement, effective Jan. 1, 1936. 

3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 17)^ percent ad valorem.^* 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$13, 620, 329 
23, 742, 816 


'",..4 


$269 053 


1937... 


399, 939 







Not separately reported. 



6. Industrial concentration and tariff policy. — Production by a few 
large manufacturers of electrical equipment, establishment of brands, 
and some patents account largely for the concentration. Removal of 
the duty would probably have only a very moderate effect on the 
import-domestic price situation. 



SEWING MACHINES 

1. Description and use. — Sewing machines include the household 
types, a great variety of high-speed factory machines, and various 
parts and attachments. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


281 


129 


•87 


$31,831,578 









• Estimated, all types. 



'* Second Canadian trade agreement, effective January 1, 1939. 



288 



CONCENTR.\TION OF ECONOMIC POWER 



3. Recent tariff history .—Act of 1913: Free. Act of 1922: 15 per- 
cent ad valorem, value not over $75; 30 percent, value over $75. 
Act of 1930: 15 percent ad valorem, value not over $75; 30 percent, 
value over $75. Present duty: 15 percent, value not over $75, 
(bound); 17 percent, value over $75.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - - - 


$21, 542, 000 
31,831,578 


$164,341 
202, 720 


$5, 977, 421 


1937 - 


9, 098, 390 







6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, marketing and servicing facilities, and establishment 
of brands account for the concentration. The largest domestic manu- 
facturer has factories abroad. Removal of the duty would have only 
a minor effect on the import-domestic price situation. 

ELECTRIC REFRIGERATORS (DOMESTIC USE) 

1. Description and use. — This title includes electric refrigerators for 
domestic use of the following capacities: 6 to 10 cubic feet, and 10 
cubic feet and over. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 to 25' 


I 14 to 25 


77 


$99, 115, 941 









• Ranges cited indicate variation in companies and plants for the above 

3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem. ^^ 

4. Average ad valorem equivalent. ■ — None. 

5. Domestic production , imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - . 


$58, 969, 157 
99, 115, 941 


(') 


(') 


1937 . 


« 







• Not available. 



6. Industrial concentration and tariff policy. — Specialization, pro- 
duction by the large manufacturers of electric equipment, economies 
of large-scale production, establishment of brands, marketing and 
servicing facilities, and patents account for the concentration. Ex- 



'» United Kingdom trade agreement, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 



289 



ports are large, imports are practically nil. These products are pri- 
marily American specialties. Removal of the duty would have Uttle 
or no effect on the import-domestic price situation. 

COMMERCIAL REFRIGERATING UNITS 

1. Description and use. — Commercial refrigerating units include 
beverage and water coolers, certain display cases, compressors, ice- 
cream cabinets, evaporators, ice-making machines (10-100 tons per 24 
hours capacity), and condensing units for ak-conditioning. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifif status in 1937: 
Free, ad valorem 
rate, or equivalent 




1 11 to 25 


1 81 to 99 


$63, 640, 662 


35 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the above items. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 25 percent ad valorem.^^ 

4. Average ad valorem equivalent.- — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$63, 640, 662 


0) 


(') 


1937 


(') 







' Not available. 



6. Industrial concentration and tariff policy.- — Technical skill, 
economies of large-scale production, marketing and servicing facili- 
ties, and patents account largely for the concentration. Exports are 
large, imports practically nil. Removal of the duty would have very 
little effect, if any, on the miport-domestic price situation. 



ELECTRIC RECEIVING SETS 

1. Description and use. — Electric receiving sets included here are 
those ranging from $25 to over $100 factory value, socket-operated 
types and automobile sets. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


7to24i . - - 


1 7 to 24 


1 78 to 90 


$50, 232, 000 


25 percent. 







1 Ranges cited indicate variation in companies, plants, and concentration for the above types. 



'6 United Kingdom trade agreement, efiectjve January 1, 1939. 



290 CONCENTRATION OF ECONOMIC POWER 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 25 percent ad valorem.'" 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$30, 010, 000 
50, 232, 000 


0) 


(') 


1937.. ..w - 


(') 



' Not available. 

6. Industrial concentration and tariff policy. — Specialization and 
technical skill, economies of large-scale production, and establish- 
ment of brands account largely for the concentration. A substantial 
reduction of the duty would probably increase imports moderately 
and might lower prices, especially on the higher-priced types. Ap- 
proximately 90 percent of the domestic output (number of sets) 
consists of the low-priced types. 

ELECTRIC RECEIVING TUBES 

1. Description and use. — Electric receiving tubes included here are 
the following types: Glass and metal direct-current and alternating- 
current tubes for replacement, and metal alternating-current tubes 
for initial installation. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifi status in 1937: 
Free, ad valorem 
rate, or equivalent 


9 to 12 1 


1 9 to 12 


I S3 to 97 


$17, 494, 103 


25 percent. 







• Ranges cited indicate variation in companies, plants, and concentration in the above types. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 35 percent ad 
valorem. Present duty: 25 percent ad valorem.'^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exjwrts. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$14, 242, 439 
17, 494, 103 




0) 


1937 


(') 







" United Kingdom trade agreement, effective January 1, h)39. 



CONCENTRATION OF ECONOMIC POWER 291 

6. Industrial concentration and tariff policy.— Some specialization, 
production by the large manufacturers of radios, establishment of 
brands, and marketing and servicing facihties account for the con- 
centration. Removal of the duty would probably have little or no 
effect on the import-domestic price situation. 

MECHANICALLY POWERED PHONOGRAPHS (INCLUDING CABINETS) 

1. Description and use. — Mechanically powered phonographs are 
spring operated and consist principally of portable units. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariflf status in 1937: 
Free, ad valorem 
rate, or equivalent 


12 


12 


94 


$7,086,391 









3. Recent tariff history. — Act of 1913: 25 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad 
valorem. Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 _ 


$2, 106, 644 
7,086.391 




(') 


1937 


(2) 







> No comparable data available. 
2 Not available. 

6. Industrial concentration and tariff policy. — Specialized production, 
establislmient of brands, and patents account for the concentration. 
Rem,oval of the duty would increase m.oderately im.ports of the 
cheaper types and would lower prices slightly. 

TELEPHONE AND TELEGRAPH APPARATUS 

1. Description and use. — Telephone and telegraph apparatus 
includes subscribers, central office, and line apparatus and inter- 
comm.unicating systems. 

2. Industrial concentration , 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


31 


54 


'90 


$115,882,648 


35 percent. 







292 CONCENTRATION OF ECONOMIC POWER 

3. Recertt tariff history.— Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 or 40 percent ad valorem. Act of 1930: 35 percent 
ad valorem. Present duty: 17}^ percent ad valorem — telegraph 
apparatus;^* 35 percent ad valorem — telephone apparatus. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 1 Domestic 
1 production 


Imports 


Exports 


1935 


$43, 584, 201 
115,882,648 


$7,000 
29,000 


$2, 102, 280 


1937 


3 784 712 







6. Industrial concentration and tariff policy. — Specialized production 
-of telephone equipment (the main item) by the largest telephone 
company, and parts supplied largely according to specifications by a 
few manufacturers for the telegraph companies account for the con- 
centration. Removal of the duty would increase imports very mod- 
erately and would lower prices slightly. 

CALCULATING MACHINES 

1. Description and use. — Calculating macliines include principally 
machines for multiplying and dividing. 

2. Industrial co7icentration, 1937. — 



Total number of companies 


Total 

number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


TarifiE status in 1937 
Free, ad valorem 
rate, or equivalent 


6 


5 


'90 


$13, 506, 101 


25 percent. 







3. Recent tariff history.— Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 35 percent — if 
electrical; 27H percent if nonelectrical. Present duty: 25 percent 
ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$9,092,686 
13, 506, 101 


1 $19, 193 
31, 554 


$1, 585, 762 


1937 .. -- --- - 


2, 481, 715 







1 Not separately classified prior to Aug. 6, 1935. 

6. Industrial concentration and tariff policy. — Specialized production, 
marketing and servicing facilities, establislmient of brands, and 
patents account for the concentration. Imports usually vary accord- 
ing to new features developed abroad. These features are soon dupli- 

>' United Kingdom trade agreement, efleetive Jan. 1, 1939. 
'« Swedish trade agreement efleetive August 5, 1936. 



CONCENTRATION OF ECONOMIC POWER 



293 



cated, or improved, or produced under licenses by domestic companies. 
A substantial reduction of the duty would have only a minor effect 
on the import-domestic price situation. 

BILLING AND BOOKKEEPING MACHINES 

1. Description and use. — Billing and bookkeeping machines include 
iisting-adding-bookkeeping and typewriter-bookkeeping-billing ma- 
chine combinations. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 




" 


'90 


$15, 569, 475 


30 percent. 





1 Estimated. 

3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad 
valorem. Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$10, 288. 555 
15, 569, 475 




(1) 


1937... - 









1 Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, tecluiical skill, m.arkoting and servicing facilities, 
and patents account for the concentration. These products are 
primarily American specialties. Exports greatly exceed iro.ports. 
Removal of the duty would have no effect on the import-domestic 
price situation. 

OFFICE MACHINES 

1. Description and use. — Office m,achines include adding machines; 
addressing and m,ailing machines; check-writing, cancelling, and 
perforating m,achines; and mim,eograpliing and multigraphing ma- 
chines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 

by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


" 


1 10-18 


1 77-88 


$24, 639, 480 


27H percent. 







Eanges cited indicate variation in companies, plants, and concentration for the above types. 



294 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 30 percent ad valorem. Act of 1930: 27)2 percent ad 
valorem.. Present duty: 27^2 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$18,056,421 
24, 639, 480 


s 




1937 


(') 







> Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, establishm.ent of brands, m.arketing and servicing 
facilities, and patents account for the concentration. These products 
are prim.arily Am.erican specialties. Exports exceed imports. Re- 
moval of the duty would have little or no effect on the import-domestic 
market situation. 

CASH REGISTERS 

1. Description and use. — Included are card punching, sorting and 
tabulating machines, and cash registers. 

2. Industrial concentration, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


28 .. 


28 


185 


$43, 022, 254 


25 percent. 







• Estimated. 



3. Recent tariff history .—Act of 1913: Free. Act of 1922: 25 percent 
ad valorem. Act of 1930: 25 percent ad valorem. Present duty: 25 
percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports ' 


Exports 


1935 


$2C, 526, 994 
43, 022, 254 


$19, 148 
2,876 


$4, 669, 897 


1937 - - 


6, 134, 304 







> Cash registers and parts only. 

6. Industrial concentration and tariff policy. — Patents, marketing and 
servicing facilities, economies of large-scale production, establishment 
of brands, financial resources and integration account largely for the 
concentration. Removal of the duty would have little or no effect on 
the import-domestic price situation. 



CONCENTRATION OF ECONOMIC POWER 295 

TYPEWRITERS, PARTS, AND ATTACHMENTS (NEW AND REBUILT) 

1. Description and use. — Typewriters include standard and portable 
types, parts and attachments, and rebuilt models. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
prouuction 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 to 15 ' 


"8-23 


91 


$43, 499, 141 


Free. 







1 Ranges cited indicate variation in companies, plants, and companies for the above classes. 

3. Recent tariff history.— Act of 1913: Free. Act of 1922: Free, 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - 


$34,914,113 
43,499,141 


$41, 097 
159, 950 


$12,718,968 




14, 860, 006 







6. Industrial concentration and tariff policy. — Economies of large- 
scale production, marketing, and servicing facilities, establishment of 
brands, some consolidations, and patents account largely for the con- 
centration. Exports greatly exceed imports. 



257771— 41— No. IC 



GROUP L: MISCELLANEOUS PRODUCTS 

HIDE AND EXTRACTED BONE GLUE 

1. Description and use. — Extracted bone glues are animal glues used 
principally in the manufacture of fiber and cardboard cartons and 
boxes. Hide glues which are used in woodworking constitute the bulk 
of the domestic production. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 and 14. .— 


{ .1 


84 
100 


} $12, 493, 337 


53 percent.' 







3. Recent tariff history. — Act of 1913: 1 cent per pound, or 15 or 
25 percent, depending on value. Act of 1922: 20 percent, plus IK 
cents, or 20 percent, plus 7 cents per pound, depending on value. 
Act of 1930: 25 percent, plus 2 cents, or 25 percent, plus 8 cents per 
pound depending on value. Present duty: 2?.^ cents per pound, plus 
20 percent, valued at less than 40 cents per pound ;i 8 cents per 
pound, plus 25 percent, valued at 40 cents or more per pound. 

4. Average ad valorem equivalent. — 1934, 46 percent; 1935, 47 per- 
cent; 1936, 54 percent; 1937, 53 percent; 1938, 47 percent; 1939, 49 
percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 1 


Exports 


1935 


J $6, 843, 078 
12,493,337 


$210, 607 
314, 097 


$164,083 


1937 - - 


211,021 







» Less than 40 cents per pound, that f 
' Estimated. 



40 cents or more negligible. 



6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, some side-line production in connection with the 
packing business, and financial resources and integration account foi 
the concentration. A substantial reduction of the duty would increase 
imports considerably and would lower prices appreciably. 



Presidential proclamation, effective September : 
296 



8, 1932. 



CONCENTRATION OF ECONOMIC POWER 
CASEIN GLUE 



297 



1. Description and use. — Casein glue is a water-resistant adhesive 
used principally in the plywood industry. 

2. Industrial concentration, 1937 . — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


201 


122 


80 


$1, 072, 395 


30 percent. 





3. Recent tariff history. — Act of 1913: 1 cent per pound, or 15 and 
25 percent, depending on value. Act of 1922: 25 percent ad valorem. 
Act of 1930: 30 percent ad valorem. Present duty: 30 percent ad 
valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$668, 282 
1, 072, 395 


$500 
None 




1937 . 









6. Industrial concentration and tariff policy. — Specialized production 
on a large scale especially by a subsidiary of a very large national 
dairy company and size of market account for the concentration. 
Removal of the duty woidd probably increase imports moderately 
and would lower prices appreciably. 

FISH GLUE 

1. Descrijotion and use. — Fish glue is used extensively in photo- 
engraving; for gummed paper; in the woodworking arts, particularly 
for alinement and inlay work; and in the household. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


2 


4 


100 


$908, 121 


38 percent. 





3. Recent tariff history. — Act of 1913: 1 cent per pound, or 15 or 
25 percent, depending on value. Act of 1922: 20 percent, plus V/i 
cents per pound or 7 cents per pound. Act of 1930: 25 percent, plus 
2 cents, or 25 percent plus 8 cents per pound. Present duty: 15 
percent, plus 1 cent (less than 40 cents per pound value); ^ 25 percent 
plus 8 cents per pound (valued at 40 cents or more per pound). 

» French trade agreement effective June 15, 1936. 



298 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — 1934, 36 percent; 1935, 36 per- 
cent; 1936, 37 percent; 1937, 38 percent; 1938, 33 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - - 


$829, 625 
908, 121 


$2, 425 
2,618 


(') 


1937 


(') 




' 



» Not separately reported. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, size of market, and patents during the early develop- 
ment of the product account for the concentration. One of the com- 
panies is the world's largest producer. Removal of the duty would 
probably only have a moderate effect on the import-domestic price 
situation. 

VEGETABLE GLUES 

1. Description and use. — Vegetable glues are low-priced adhesives 
used principally for sealing paper cartons containing foodstuffs, and 
in the manufacture of plywood. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$8, 621, 874 34 percent. 



' Estimated. 

3. Recent tariff history. — Act of 1913: 1 cent per pound or 15 or 25 
percent. Act of 1922: 20 percent, plus 1^ cents (less than 40 cents 
value), or 25 percent plus 8 cents (40 cents or over). Act of 1930: 
26 percent plus 2 cents (less than 40 cents), or 8 cents (40 cents or 
over). Present duty: 25 percent plus 2 cen'ts (less than 40 cents), or 
8 cents (40 cents or over). 

4. Average ad valorem equivalent. — 1934, 39 percent; 1935, 56 per- 
cent; 1936, 42 percent; 1937, 34 percent; 1938, 46 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$5, 204, 473 
8, 621, 874 


$84 
19 


(') 


1937 . 


(') 







' Not reported. 

6. Industrial concentration and tariff policy. — Some large specialized 
production, side-line production, and patents account for the concen- 
tration. A substantial reduction of the duty would increase moder- 
ately im.ports, especially of tapioca glues, and would lower prices of 
this type of vegetable glue only slightly. 



CONCENTRATION OF ECONOMIC POWER 299 

CIGARETTES 

1. Description and use. — Cigarettes include all rolls of tobacco 
wrapped with paper or with any substance other than tobacco. 

2, Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
produption 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


32 -- -- - 


41 


85 


$887, 723, 312 


109 percent. 







3. Recent tariff history. — Act of 1913: $4.50 per pound plus 25 per- 
cent ad valorem. Act of 1922: $4.50 per pound plus 25 percent ad 
valorem. Act of 1930: $4.50 per pound plus 25 percent ad valorem. 
Present duty: $2.25 per pound plus 12}^ percent ad valorem.^ 

4. Average ad valorem equivalent. — 1934, 101 percent; 1935, 106 per- 
cent; 1936, 107 percent; 1937, 109 percent; 1938, 110 percent. 

5. Domestic ^production, imports, and exports. — 



Year 


Domestic 
production 


Imports I 


Exports 




$723, 249, 455 
887, 723, 312 


$17, 896 
13, 353 


$7,261,950 


1937 


11,022,291 







' Free imports from the Philippines in addition: 1935, $52,583; 1937, $5,015. 

6. Industrial concentration and tariff policy.- — Experience, financial 
resources, and the establishment of brands largely account for the 
present concentration. The small dutiable imports consist chiefly of 
higher-priced brands of English and Turkish cigarettes. Rem,oval of 
the duty would probably affect only slightly the import-domestic 
price situation. 

PLUG CHEWING TOBACCO 

1. Description and use. — Plug chewing tobacco is heavily flavored 
cut plug tobacco. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


18 


18 


92 


$31,726,954 


31 percent.! 







1 "Manufactures of tobacco, not specifloally provided for." 

3. Recent tariff history.— Act of 1913: 55 cents per pound. Act of 
1922: 55 cents per pound. Act of 1930: 55 cents per pound. Present 
duty: 35 cents per pound.* 

3 United Kingdom trade agreement, effective January 1, 1939. Both domestic and imported cigarettes are 
subject to the internal-revenue tax. 
< United Kingdom trade agreement, effective January 1, 1939. 



300 



CONCENTR.\TION OF BCXDNOMIC POWER 



4. Average ad valorem equivalent. — Not available. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports' 


1935 


(2) 
$31,729,954 


(2) 


$597,309 
842, 073 


1937 





' Ohewing tobacco, plug, and other. 

' Not available. 

• Not reported separately, but negligible. 

6. Industrial concentration and tariff policy. — A decrease in demand 
over a period of years partly explains the concentration; other factors 
are financial resources and the popularity of certain brands. A sub- 
stantial reduction of the dut}^ would not affect appreciably the import 
situation. 

SMOKING TOBACCO 

1. Description and use. — Smoking tobacco includes the familiar 
blends of domestic and imported tobacco, usually packaged in tins. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


119 


126 


78 


$117,641,220 


31 percent. 





3. Recent tariff history. — Act of 1913: 55 cents per pound. Act of 
1922: 55 cents per pound. Act of 1930: 55 cents per pound. Present 
duty: 35 cents per pound. ^ 

4. Average ad valorem equivalent. — 1934, 44 percent; 1935, 35 per- 
cent; 1936, 30 percent; 1937, 31 percent; 1938, 32 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$117, 641, 220 


$146, 654 
188.924 


$649, 597 


1937 


479,938 





' Not available. 

» "Manufactures of tobacco, not specifically provided for," mostly smoking. 

6. Industrial concentration and tariff policy. — Capital requirements 
for large-scale operations and the establishment of brands are impor- 
tant factors in an explanation of the present concentration. Imported 
brands sell at prices considorabi}' higher tlian the domestic ones. A 
substantial reduction of the dut}" would probably increase imports 
moderately without affecting appreciably domestic prices. 



United Kingdom trade agreement, effective January 1, : 



CONCENTRATION OF ECONOMIC POWER 
SNUFF 



301 



1. Description and use. — Snuff varies in texture and moisture con- 
tent; it may be plain or sweetened, and scented or flavored by such 
ingredients as attar of roses, essence of lemon, and tonka beans. It 
is used primarily for chewing. 

2. Industrial concentration, 1937.— 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


13 


99 


$29, 204, 135 









55 cents per poimd. 
55 cents per pound. 



Act of 
Present 



3. Recent tariff history. — Act of 1913 
1922: 55 cents per poimd. Act of 1930 
duty: 35 cents per pound. ^ 

4. Average ad valorem equivalent. — 1934, 28 percent; 1935, 27 per 
cent; 1936, 33 percent; 1937, 43 percent; 1938, 41 percent. 

5. Domestic production, imports, and exports. — ■ 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$29, 204, 135 


$47, 256 
45, 753 


(») 


1937 


Q) 







I Not available. 

' Not reported separately, but negligible. 

6. Industrial concentration and tariff policy. — The three largest com- 
panies acquired the snuff business of the American Tobacco Co. upon 
its dissolution in 1912. Capital requirements and the establishment 
of brands are largely responsible for the present concentration. Im- 
ported foreign brands supply a limited group of consum.ers. Reduc- 
tion or removal of the duty would probably aft'ect imports and prices 
only m,oderately. 

SCRAP CHEWING TOBACCO 

1. Description and use. — Scrap chewing tobacco is used exclusively 
for chewing. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


64 


64 


87 


$21,414,443 


31 percent.' 







' "Manufactures of tobacco, not specifically provided for." 



United Kingdom trade agreement, effective January 1, : 



302 



CONCENTRATION OF ECONOMIC POWER 



Act of 1913: 55 cents per pound. Act of 
Act of 1930: 55 cents per pound. Present 



3. Recent tariff history. 
1922: 55 cents per pound, 
duty: 35 cents per pound, 

4. Average ad valorem equivalent. — Not available 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(2) 
$21,414,443 


(0 


!3 


1937.... 





' Not reported separately, but negligible. 
' Not available. 

6. Industrial concentration and tariff policy. — A decrease in demand 
over a period of years partly explains the concentration; other factors 
are financial resources and the popularity of certain brands. A sub- 
stantial reduction of the duty would not affect appreciably the import 
situation, 

BRIAR TOBACCO PIPES 

1. Description and use. — Briar tobacco pipes are a widely used type. 
The bowls are made of briar wood and the mouthpieces are usually 
made of hard rubber or other plastic material. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


16 


'' 


75 


$7,094,415 


71 percent. 



3. Recent tariff history . — Act of 1913: 50 percent ad valorem. Act 
of 1922: 60 percent ad valorem. Act of 1930: 5 cents each plus 60 
percent ad valorem. Present duty: 2)^ and 5 cents each plus 40 and 50 
percent depending on value. ^ 

4. Average ad valorem equivalent. — 1934, 72 percent; 1935, 73 per- 
cent; 1936, 73 percent; 1937, 71 percent; 1938, 72 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports < 


Exports 


1935 


$5,401,456 
7,094,415 


$193, 776 
339, 608 


(J) 


1937 


$96, 550 







' Principally briar pipes. 
sNot available. 



6. Industrial concentration and tariff policy. — Establishment of 
brands and financial connections of a few manufacturers with their 
retail outlets account largely for the concentration. Briar wood is not 
produced in the United States. A substantial reduction of the duty 
would increase imports moderately and would lower prices slightly. 

' United Kingdom trade agreement, effective January 1, 1939. 

' French trade agreement, June 15, 19^6; British trade agreement, January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 303 

CHEWING GUM 

1. Description and use. — Chewing gum is a confection which is 
manufactured from chicle, crude gum, sugar, and corn sirup. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


251 


.25 


■85 


$54,633,498 









3. Recent tariff history. — Act of 1913: 15 percent. Act of 1922: 
20 percent. Act of 1930: 20 percent. Present duty: 20 percent. 

4. Average ad valorem equivalent. — None, 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$45, 599, 719 
54,633,498 


None 
None 


$915,661 


1937 


1, 176, 524 







6. Industrial concentration and tariff policy. — Speciahzation, econo- 
mies of large-scale production, and establishment of brands account 
for the concentration. This product is an American specialty and 
American companies have many branch factories in foreign countries. 
Elimination of the duty would have no effect on the import-domestic 
price situation. 

INNER SPRING MATTRESSES 

1. Description and use. — Mattresses with inner spring construction 
are used for various types of beds. They constitute more than one- 
half of the total output of mattresses. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


525 


555 


1 90 


$39,433,659 


45 percent. 







3. Recent tariff history. — Act of 1913: 20 percent ad valorem. 
Act of 1922: 40 percent ad valorem. Act of 1930: 45 percent ad 
valorem. Present duty: 45 percent ad valorem. 

4. Average ad valorem equivalent. — None. 



304 CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$32,118,076 
39, 433, 659 


n 


0) 


1937 


(') 







' Imports negligible, exports small. 

6. Industrial concentration and tariff policy. — Specialization, econo- 
mies of large-scale production, marketing facilities, and advertising 
account largely for the concentration. This product is mainly an 
American specialty. Removal of the duty would probably have little 
or no effect on the import-domestic price situation. 

BINDER TWINE 

1. Description and use. — Binder twine is a single ply twine usually 
made of henequen. Its primary use is in tying bundles of grain in 
harvesting. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 


14 


185 


a $8, 581, 676 


Free. 







I Estimated. 

» Not including 42,8 



1,291 pounds made in penal institutions. 



3. Recent tariff history. — Act of 1913: Free. 
Act of 1930: Free. Present duty: Free. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Act of 1922: Free. 



Year 


Domestic 
production i 


Imports 


Exports 


1935 


$6, C29, 537 
8,581,676 


$2, 883, 456 
3,484,375 


$401,828 


1937 


371,235 







» Not including 67,364,950 pounds, 1935, and 42,809,291 pounds, 1937, made in penal institutions. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale and production by one of the large manufacturers of a 
full line of farm implements account for the concentration. Raw 
material is also imported free of duty. 



PRESS CLOTH OF HUMAN HAIR 



1. Description and use. — Press cloth of this type is a thick, heavy 
cloth made of Asiatic human hair. It is used almost entirely in the 
vegetable-oil industry to hold the seeds from which oil is pressed by 
means of hydraulic presses. 



CONCENTRATION OF ECONOMIC POWER 3Q5 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


41 -- 


14 


1100 


1 $1, 050, 000 


57 percent.,' 





' Estimated. 

2 No imports; estimate based on domestic values. 

3. Recent tariff history. — Act of 1913: 15 cents per square yard. 
Act of 1922: 35 percent ad valorem. Act of 1930: 8 cents per pound, 
plus 40 percent ad valorem. Present duty: 4 cents per pound, plus 
30 percent ad valorem.^ 

4. Average ad valorem equivalent. — None. 

5. Domestic 'production, imports, and exports. — 



Year 


Domestic 
production 1 


Imports 


Exports 


1935 


$750, 000 
1, 050, 000 


None 
None 


(^) 


1937 . 


(?) 







1 Estimated. 

'Not available, but known to 1 



6. Industrial concentration and tariff policy. — Experience and limited 
market account for the concentration. There have been no imports 
since 1930. A substantial reduction of the duty would probably 
increase imports and lower prices. 



1 . Description and use 
for art classes. 

2. Industrial concentration, 1937. 



WAX CRAYONS 

Wax crayons are used principally in schools 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


13 ... 


13 


87 


$1, 952, 672 


65 percent.' 







3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 45 cents per gross, plus 25 percent ad valorem. Act of 1930: 
50 cents per gross, plus 30 percent ad valorem. Present duty: 50 
cents per gross, plus 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

» United Kingdom trade agreement, effective January 1, 1939. 



306 CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(') 
$1, 952, 672 


8 




1937 





• Not separately shown. 

6. Industrial concentration and tarijf policy. — Specialized production 
which has continued over a period of years; estabhshment of brands, 
and size of market account largely for the concentration. A substan- 
tial reduction of the duty would increase imports moderately and would 
lower prices. 

TOOTHBRUSHES 

1. Description and use. — Toothbrushes consist of those with handles 
of cellulose compounds (celluloid, etc.) and those with handles of other 
materials, such as synthetic resin (bakelite, etc.), bone, and bamboo. 
Practically all types contain hog bristle. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


17 


17 


88 


$6, 341, 382 


77 percent. 





3. Recent tariff history. — Act of 1913: 40 and 35 percent ad valorem. 
Act of 1922: 60 and 45 percent ad valorem. Act of 1930: 2 cents 
each plus 50 percent (cellulose handles) ; 1 cent each plus 50 percent 
(other) . Present duty : 2 cents each plus 50 percent (cellulose handles) 
1 cent each plus 25 percent (other). '° 

4. Average ad valorem equivalent. — 1934, 119 percent; 1935, 122 per- 
cent; 1936, 119 percent; 1937, 114 percent; 1938, 112 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$6, 505, 184 
6, 341, 382 


$306, 368 
447, 485 


$327, 232 


1937 


518, 126 







6. Industrial concentration and tariff policy. — At least 90 percent of 
the domestic output is made with handles of cellulose material. One 
large general chemical company makes most of these handles, as well 
as large quantities of finished brushes. Production of handles on a 
large scale, marketing facilities, and establishment of brands account 
for the concentration. Imports consist mostly of those with handles 
of cellulose, bone, or bamboo. A substantial reduction of the duties 
would increase imports moderately and would lower prices slightly. 

'0 Trade agreement with the United Kingdom, January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 



307 



PHOTOGRAPHIC DRY PLATES AND SLIDES (SENSITIZED, BUT NOT 
EXPOSED) 

1. Description and use. — Photographic dry plates are glass sheets 
coated with a light-sensitive emulsion for exposure in a camera. 
Photographic slides, coated in the same way, on which are 'made 
positive transparencies, are used in a projector or stereoptican. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tarifl status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


«80 


$876,756 


20 percent. 





3. Recent tarif history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 45 percent ad valorem. Act of 1930: 45 percent ad valorem. 
Present duty: 45 percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$944, 717 
876, 756 


$164, 258 
162, 024 


$205, 495 
159, 367 


1937 





6. Industrial concentration and tarif policy. — Specialization and 
shrinkage of market account largely for the concentration. Cut film 
is gradually replacing dry plates in professional as well as in amateur 
work. Removal of the duty would probably have little or no effect 
on the import-domestic price situation. 



SENSITIZED PHOTOGRAPHIC PAPER 



1. Description and use. — Sensitized photographic paper is paper 
which has been processed and made sensitive to light or chemicals, 
and on which the positive is printed from the negative film or plate. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


11 


11 


185 


$12, 285, 739 


22^ percent. 





3. Recent tarif history. — Act of 1913: 25 percent. Act of 1922; 
3 cents per pound and 20 percent ad valorem. Act of 1930: 30 per- 
cent. Present duty: 22)2 percent." 

M Belgian trade agreement, effective May 1, 1935. 



308 CONCENTRATION OF ECONOMIC POWER 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


P?oTuS i-pons 


Exports 


1935^ 


' $13, 653, 722 
12, 285, 739 


$271, 678 
360, 488 


$1, 348, 878 
1, 126, 947 


1937 





' Not strictly comparable. 

6. Industrial concentration and tarif policy. — Specialization, exten- 
sive marketing facilities, and economies of large-scale production ac- 
count largely for the concentration. Exports consist principally of 
paper shipped by the largest domestic producer to its distributing 
houses abroad. Imports are mainly from large foreign companies 
which have American -affiliated companies. A substantial reduction 
in the duty would increase imports and would lower prices. 

PHOTOGRAPHIC FILM (EXCEPT X-RAY) 

1. Description and use. — Photographic film includes motion-picture 
film for amateur use (8 mm. and 16 mm.) and for professional use 
(35 mm.), and cartridge, roll, and cut films for amateur use primarily. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


19 


190 


$49, 502, 783 


22 percent.' 





* Estimated. 

3. Recent tariff history.— Act of 1913: Free. Act of 1922: Four- 
tenths cent per linear foot of standard width of 1% inches. Act of 
1930: Four-tenths cent per foot, standard width; 25 percent ad valo- 
rem, less than 1 inch. Present duty: Two-tenths cent per linear foot^. 
standard width; 12^ percent ad valorem, less than 1 inch width. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$49, 502, 783 


> $1, 424, 675 
1, 987, 387 


2 $6, 506, 757 


1937.... . . . 


7, 271, 348 







' Not available. 

* Includes X-ray film. 

6. Industrial concentration and tariff policy. — Specialized production 
on a large scale, technical skill, contractual selling, and marketing 
facilities account largely for the concentration. Removal of the duty 
would have only a very moderate effect, especially on the narrower 
widths, with regard to the import-domestic price situation. 

'2 Belgian trade agreement, effective May 1, 1936. 



CONCENTRATION OP ECONOMIC POWER 3Q9 

PHOTOGRAPHIC X-RAY FILM 

1. Description and use. — X-ray film is cut film specially designed for 
scientific photography. It is used largely by dentists and surgeons 
and ranges in size from 1 by 1}^ inches to 14 by 36 inches. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 . _ . 


7 


:90 


$9,415,582 


121.^ percent. 





3. Recent tariff history. — Act of 1913: Free. Act of 1922: Four- 
tenths cent per linear foot V/s mches wide. Act of 1930: 25 percent 
ad valorem. Present duty: 12}^ percent ad valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$9, 415, 582 


$44, S30 


$790, 677 


1937— 





• Not available. 

6. Industrial concentration and tariff policy. — Technical skill, 
specialization, economies of large-scale production, and establish- 
ment of brands account largely for the concentration. Imports 
consist mostly of small sizes; exports of large sizes. Rapid deteriora- 
tion from heat and moisture is an obstacle to long-distance shipping. 
The recent reduction of the duty is lilvely to have only a moderate 
effect on the unport-domestic price situation. 

MOTION-PICTURE PROJECTORS (STANDARD AND SUBSTANDARD GAGES) 

1. Description and use. — Standard gage projectors are used for the 
commercial 35-mm. films, the substandard for narrower films, espe- 
cially as used in amateur photograph}^ 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 and 9 


{ I 


82 
90 


} $6, 864, 364 


35 percent. 





3. Recent tariff history . — Act of 1913: 20 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 35 percent ad valorem. 
Present duty: 35 percent ad valorem. 

'2 Belgian trade agreement, effective May 1, 1936. 



310 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 154, 110 
6, 864, 364 




$478, 149 
1,111,892 


1937 - 





' Not reported separately, but probably negligible. 

6. Industrial concentration and tariff policy. — Technical skill, spe- 
cialization, economies of large-scale production, and establishment of 
brands account largely for the concentration. A substantial reduc- 
tion of the duty would probably increase imports moderately, espe- 
cially of the 16-mm. type, and would lower prices slightly. 

BASEBALL BATS 

1. Description and use. — Baseball bats are made principally of ash 
and hickory woods. Recently more light woods are being used. 
Good quality bats must be made exactly to size and weight speci- 
fications. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 
domestic 
production 
by 4 largest 
companies 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



30 percent. 



3. Recent tariff history. — Act of 1913: 15 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935— 


$1, 132, 177 
1, 060, 393 


(') 
(') 


(') 


1937 


(') 







> Not available, but negligible. 

6. Industrial concentration and tariff policy. — Side-line production 
by the large manufacturers of athletic goods, financial resources and 
consolidations, and establishment of brands account largely for the 
concentration. This product is largely an American specialty. Re- 
moval of the duty would probably have only a minor effect on the 
import-domestic price situation. 



CONCENTRATION OF ECONOMIC POWER 

BASEBALLS 



311 



1. Description and use. — Baseballs are made with rubber or cork 
centers, which are wound with woolen or other yarn. Covers are of 
leather, imitation leather, or rubber. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


10 


76 


$2,301,004 


30 percent. 





3. Recent tariff history. — Act of 1913: Dutiable according to com- 
ponent material of chief value. Act of 1922: 30 percent. Act of 
1930: 30 percent. Present duty: 30 percent. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production ' 


Imports 


Exports 


1935 . 


$2, 594, 784 
2,301,004 


(2) 
(2) 


0) 


1937 


h) 







1 Includes playground balls. 

2 Not avaUable. 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion, side-line production by the large manufacturers of athletic goods, 
and estabUshment of brands account largely for the concentration. 
The few imports consist mainly of low-grade balls. A substantial re- 
duction of the duty would increase imports and would lower prices 
of the cheaper types of balls. 

BASKETBALLS 

1. Description and use. — All basketballs were formerly made with 
separate rubber bladders and leather covers. Recently a molded 
ball has been perfected in which the carcass is shaped, and the leather 
case molded thereon. The new type is more nearly perfect and 
better wearing than the old type. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
0." plants 


Percent of 
domestic 
production 
Ijy 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


16 


17 


83 


$859, 437 


30 percent. 







2ri7771— 41— No. 10- 



312 CONCENTRATION OF ECONOMIC POWER 

3. Recent tariff history. — Act of 1913: Dutiable according to 
component material of chief value. Act of 1922: 30 percent ad 
valorem. Act of 1930: 30 percent ad valorem. Present duty: 20 
percent ad valorem.^* 

4. Average ad valorem equivalent. — 

5. Domestic production, imports, and exports. — None. 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$646, 316 
859,437 


s:! 


(') 


1937 


(') 







* Not available, but small. 

6. Industrial concentration and tariff policy. — Side-line production 
by the large manufacturers of athletic goods, financial resources and 
consolidations, establishment of brands and patents account largely 
for the concentration. This product is largely an American specialty. 
Removal of the duty would have only a slight effect on the import- 
domestic price situation. 

TENNIS BALLS 

1. Description and use. — Tennis balls are hollow rubber balls 
covered with wool felt. Most types are filled with gas to increase 
their bounce. Present regulation balls are in chief value of felt. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


3 -. 


3 


100 


$1,697,898 









3. Recent tariff history. — Act of 1913: Dutiable according to com- 
ponent material of chief value. Act of 1922: 30 percent ad valorem. 

Act of 1930: 30 percent ad valorem. Present duty: 30 percent' 
ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1, 263, 588 


$73,274 
29, 484 


(') 


1937 - - ---- 


(') 







' Not available, but small. 

6. Industrial concentration and tariff policy. — Side-line production 
by the large manufacturers of athletic goods and rubber tires, financial 
resources and consolidations, and establishment of brands account 
largely for the concentration. Imports are comparable to the do- 
mestic product and come mainly from the United Kingdom. Do- 

" Trade agreement with tlic United Kingdom, January 1, 1939. 



CONCENTRATION OF ECONOMIC POWER 3]^3 

mestic producers object to the size of imports and to the lower selling 
price. A substantial reduction of the duty would increase imports 
moderately and would lower prices. 

GOLF BALLS 

1. Description and use. — Golf balls are made of rubber thread with 
either a solid rubber or Uquid center; they have balata covers. The 
expensive balls have liquid centers and are wound very tightly. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


14 


14 


80 


$4,387,919 


30 percent. 





3. Recent tariff history. — Kd of 1913: Dutiable according to com- 
ponent material of chief value. Act of 1922: 30 percent ad valorem. 
Act of 1930: 30 percent ad valorem. Present duty: 20 percent ad 
valorem. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$3, 974, 641 
4, 387, 919 


$90, 964 
62, 071 


$26, 096 


1937 





1 Not available. 

6. Industrial concentration and tariff policy. — The difficulty of 
obtaining and storing rubber thread, use of patented machinery for 
winding the thread, and financial resources account for the concen- 
tration. Imports consist of balls which conform to the four retail 
price groups at which golf balls are commonly sold in the United 
States, namely, 25, 35, 50, and 75 cents. A substantial reduction 
in the duty would increase imports moderately and would lower 
prices. 

GOLF CLUB SHAFTS 

1. Description and, use. — Golf club shafts were formerly made of 
wood. Steel shafts in recent years have almost completely displaced 
wooden shafts. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


178 


$1, 716, 185 


40 and 33 H percent. 







"Trade agreement with the United Kingdom, January 1, 



314 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history.— Act of 1913: None. Act of 1922: 40 
percent ad valorem (metal shaft); 33}3 percent (wood). Act of 1930: 
40 percent ad valorem (metal shaft); 33)3 percent (wood). Present 
duty: 40 percent ad valorem (metal shaft); 33K percent (wood). 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 




$1,141,837 
1, 716, 155 


(0 


W 


1937 - -- 


(2) 







« Negligible. 

» Not reported separately, but large. 

6. Industrial concentration and tariff _ policy. — Technical skill (ex- 
treme accuracy in drawing and tempering), specialization, and econ- 
omies of large-scale production account for the concentration. Steel 
shafts are an American development. A substantial reduction of the 
duty w^ould probably have only a moderate effect on the import- 
domestic price situation. 



STEEL FISHING RODS 

1 . Description and use.— Steel fishing rods are made of either light, 
hollow, steel tubes, or solid steel. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


8 


8 


84 


$1, 197, 200 


55 percent. 







3. Recent tariff history. — Act of 1913: 30 percent ad valorem. Act 
of 1922: 45 percent ad valorem. Act of 1930: 55 percent ad valorem. 
Present duty: 55 percent ad valorem; valued at $10 or more — 30 
percent. ^^ 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$946, 283 
1, 197, 200 


0) 


(') 


1937 


$169, 605 







» Not available, but exports probably exceed imports. 

6. Industrial concentration and tariff policy. — Specialization, tech- 
nical skill, and size of market account largely for the concentration. 
High-grade rods are an American specialty. Imports consist of 
medium-grade and low-grade rods. A substantial reduction of the 
duty would probably increase imports gradually, and would lower 
prices moderately. 

«• Trade agreement with the United Kingdom, effective January 1, 1939. 



CONCENTRATION OF ECONOMIC POWEH 
SLIDE FASTENERS 



315 



1. Description and use. — Slide fasteners are the widely known 
'zippers" used as closures in a great variety of articles. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


5> 


17 


190 


I $15, 000, 000 


66 percent. 





3. Recent tariff history. — Act of 1913: 20 percent. Act of 1922: 
40 percent. Act of 1930: 45 percent. Present duty: 66 percent. ^^ 

4. Average ad valorem equivalent. — 

5. Domestic ^production, imports, and exports. — 



Year 


Domestic 
production i 


Imports 


Exports 


1935 . 


$10, 000, 000 
15,000,000 


$400, 422 Negligible, 
869 829 T)n 


1937 









6. Industrial concentration and tariff policy. — Experimental work, 
patents, and advertising largely account for the present concentration. 
The imported fasteners are sold at much lower prices than the domes- 
tic ones, which are usually of better quahty. A substantial reduction 
of the duty would increase imports moderately and would lower prices 
of the common types. 

METAL BUTTONS 

1. Description and use. — Metal buttons consist of embossed buttons 
and other uniform buttons, trouser buttons, and various other types 
of metal buttons. 

2. Industrial concentration, 1937. — 





Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 






Total number of companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


19 


19 


75 


$2, 616, 990 


44 percent. 







3. Recent tariff history. — Act of 1913: 15 percent ad valorem. 
Act of 1922: K2, Vi, and % cent per line per gross plus 15 percent; if 
embossed, 45 percent. Act of 1930: K2, Va, and % cent per line per 
gi^oss plus 15 percent; if embossed, 45 percent. Present duty: K2, 
Yi cent per line per gross plus 15 percent; if embossed, 45 percent; K 
cent per line per gross plus 10 percent. ^^ 

" Presidential proclamation, eSective July 31, 1936. 

■^ Trade Agreement with the United Kingdom, effective Jan. 1, 1939. 



316 



CONCENTRATION OF ECONOMIC POWER 



4. Average ad valorem equivalent. — 1934, 44 percent; 1935, 44 per- 
cent; 1936, 43 percent; 1937, 44 percent; 1938, 37 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$2, 062, 344 
2, 616, 9fl0 


$39, 964 
69, 175 


(') 


1937 - 


(') 







• Not separately reported. 



6. Industrial concentration and tariff policy. — Specialization and 
size of market account largely for the concentration. Imports con- 
sist mostly of embossed buttons. A substantial reduction of the duty 
would increase imports moderately and would lower prices slightly. 



VEGETABLE IVORY BUTTONS 



1, Description and use. — Vegetable ivory buttons are used princi- 
pally for outerwear, such as overcoats, as well as for men's suits. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


10 


10 


75 


$1,605,022 


96 percent. 







3. Recent tariff history . — Act of 1913: 35 and 45 percent ad valorem. 
Act of 1922: 1}^ cents per line per gross plus 25 percent ad valorem. 
Act of 1930: 1)^ cents per line per gross plus 25 percent ad valorem. 
Present duty: V/i cents per line per gross plus 25 percent ad valorem. 

4. Average ad valorem equivalent. — 1934, 87 percent; 1935, 94 per- 
cent; 1936, 69 percent; 1937, 96 percent; 1938, 84 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 — 


$1, 847, 569 
1, 605, 022 


$3, 542 
7,162 


(') 


1937 


0) 







I Not available. 



6. Industrial concentration and tariff policy. — Specialization, shrink- 
age of the market (substitution of other types of button, especially 
those made of plastics) and decrease in number of producers account 
for the concentration. A substantial reduction of the duty would 
probably increase imports moderately and would lower prices slightly. 



CONCENTRATION OF EiOONOMIC POWER 
BONE AND HORN BUTTONS 



317 



1. Description and use. — Bone and horn buttons consist mostly of 
bone buttons which are used on cheap garments. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
dompstlc 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


7 


7 


90 


$715, 896 


45 percent. 





3. Recent tariff history . — ^Act of 1913: 40 percent ad valorem. Act 
of 1922: 45 percent ad valorem. Act of 1930: 45 percent ad valorem. 
Present duty: 45 and 35 percent ad valorem.^* 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(•) 
$715,896 


» $75, 473 


0) 


1937 


(1) 







' Not available. 

' Horn buttons only; imports ( 



■ bone buttons negligible. 



6. Industrial concentration and tariff policy. — Specialization and 
limited market (competition of other types of buttons including 
plastic buttons) accounts for the concentration. Imports consist 
mostly of horn buttons. A substantial reduction of the duty would 
probably increase imports moderately and would lower prices slightly. 

PHONOGRAPH NEEDLES 

1. Description and use. — Phonograph needles are usually made of 
metal. A few have permanent points of sapphire, others are made of 
fiber. Needles are used for all kinds of recording and reproducing 
machines. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 


6 


>90 


$583, 472 











1 Estimated. 

i» Horn buttons reduced to 35 percent in trade agreement with the United Kingdom, effective Jan. 1, 1939. 



318 



CONCENTRATION OF ECONOMIC POWER 



3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 45 percent ad valorem. Act of 1930: 8 cents per thousand, 
plus 45 percent ad valorem. Present duty: 8 cents per thousand, 
plus 45 percent ad valorem. 

4. Average ad valorem equivalent. — 1934, 100 percent; 1935, 98 per- 
cent; 1936, 88 percent; 1937, 69 percent; 1938, 72 percent. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 - - - 


$269. 364 
583, 472 


$3,288 


(') 


1937 


(') 







1 Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
and limited market account largely for the concentration. A sub- 
stantial reduction of the duty would increase imports and would lower 
prices. 



PHONOGRAPH RECORD BLANKS (FOR CYLINDERS AND DISKS) 

1. Description and use. — Phonograph record blanks are for im- 
mediate reproduction following recording. They consist principally 
of the cylinder type used for dictaphones. 

2. Industrial concentration, 1987. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free ad valorem 
rate, or equivalent 


e 


7 


190 


$1, 267, 986 


30 percent. 







1 Estimated. 

3. Recent tariff" history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 30 percent ad valorem. 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


$1,267,986 




(') 


1937 


(■) 







• Not avaUable. 

6. Industrial concentration and tariff policy. — Specialized produc- 
tion, ostabhshment of brands, and size of market probably account 
for the concentration. Removal of the duty would have only a 
moderate effect on the import-domestic price situation which would 
be confined primarily to the low-priced grade, cheaper products. 



CONCENTRATION OF BOONOMIC POWER 319 

DISK PHONOGRAPH RECORDS (NOT INCLUDING TRANSCRIPTIONS) 

1. Description and use. — Disk phonograph records are the usual 
type used for music reproduction. 

2. Industrial concentration, 1937. — 



Total number of companies 



Total 
number 
of plants 



Percent of 

domestic 

production 

by 4 largest 



Domestic 
production 



Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 



$4, 755, 877 30 percent. 



3. Recent tariff history. — Act of 1913: 25 percent ad valorem. Act 
of 1922: 30 percent ad valorem. Act of 1930: 30 percent ad valorem. 
Present duty: 15 percent ad valorem.^" 

4. Average ad valorem equivalent. — None. 

5. Domestic production, imports, and exports. — 



Year 


Domestic 
production 


Imports! 


Exports > 


1935. 


$4, 755, 877 


$74, 683 
79, 341 


$266, 854 


1937 


419, 146 







' May include electrical transcriptions, 
s Not available. 

6. Industrial concentration and tariff policy. — Specialized production 
and the establishment of brands account for the concentration. 
Removal of the duty would have only a minor effect on the import- 
domestic price situation. 

MUSICAL INSTRUMENTS 

1. Description and use. — Musical instruments include here saxo- 
phones, clarinets, cornets, and trumpets, accordions, and drums. 

2. Industrial concentration, 1937. — 



Total number of companies 


Total 
number 
of plants 


Percent of 
domestic 
production 
by 4 largest 
companies 


Domestic 
production 


Tariff status in 1937: 
Free, ad valorem 
rate, or equivalent 


6 to 12 • 


16-12 


1 78-90 


$5, 103, 476 


30 and 40 percent. 







' Range cited indicates variation in companies, plants, and concentration for the above products. 

3. Recent tariff history. — Act of 1913: 35 percent ad valorem. Act 
of 1922: 40 percent ad valorem. Act of 1930: 40 percent ad valorem. 
Present duty: 30 and 40 percent ad valorem.^^ 

4. Average ad valorem equivalent. — None. 

20 United Kingdom trade agreement, effective January 1, 1939. 

" Saxophones and clarinets, 30 percent, French trade agreement, June 15, 193G. 



320 CONCENTRATION OF ECONOMIC POWER 

5. Domestic production, imports, arid exports. — 



Year 


Domestic 
production 


Imports 


Exports 


1935 


(') 
$5, 103, 476 


0) 
$2,229,420 


(') 


1937 . - -- ... 


* $189, 076 







I Not available. 
• Saxophones only. 

6. Industrial concentration and tarijf policy. — Full-line production 
by a few large companies, some specialization, limited market, and 
establishment of brands account largely for the concentration in the 
above products. Exports of saxophones and drums exceed imports. 
With the exception of di'ums, a substantial reduction of the duty 
(including the duty on reeds for accordions, which are imported) 
would probably increase imports moderately and would lower prices 
appreciably. 



INDEX 

Page 
AGRICULTURAL AND AUTOMOTIVE MACHINERY AND 
RELATED PRODUCTS: 
Monopolistic elements: 

Effects of reduction or removal of duties; comment and table 14. 24 
AGRICULTURAL IMPLEMENT INDUSTRY: 

Material concentration 24 

ANTITRUST ACT PROSECUTIONS: 

Corn Products Refining Co. litigation, 1916-19 15 

International Harvester Co., 1912-18 24 

AUTOMOTIVE INDUSTRY: 

Companies entering glass industry 51 

BASING-POINT PRICE POLICIES: 

Gypsum industry 38 

Plate glass industry 52 

Potash industry investigation by Department of Justice 19 

Sbda ash industry 19 

Window glass industry 63 

BORATES INDUSTRY: 

American Potash & Chemical Corporation, American concern 59, 63 

Organized in 1913 as American Trona Co.; reorganized under 

present name in 1926 63 

Borax Consolidated, Ltd., British concern, controls world production. 59, 63 
Colemanite: 

Discovered in Death Valley, Calif 63 

Displaced by Kernite in late 1920's 59 

Concentration in 19 

Industrial relationships: 

Potash industry 19 

Soda ash industry 19 

Kernite: 

Displaces Colemanite in late 1920's 59 

Source of borates production of Pacific Coast Borax Co 63 

Kuhnerts Syndicate, operations of 64 

Lake brine borax producing companies 64 

Origin of, in United States 63 

Pacific Coast Borax Co.: 

American affihate of Borax ConsoUdated, Ltd 60, 62 

Companies absorbed by 64 

Mining activities concentrated at Kramer, Calif 63 

Most important producing subsidiary of Borax Consolidated, 

Ltd 63 

Operations transferred to California from Nevada about 1885 63 

Refinery at Wilmingtoni Calif 63 

Prices for borax and boric acid, available sources, limitation of 61 

Uses 59 

World borates production controlled by Borax Consolidated, Ltd 59 

BUILDING MATERIALS: 
Gypsum: 

Domestic production, imports, and exports 30-32 

Sold in the United States 1937-38; tonnage and value; table 19.. 32 
Keene's cement: 

Sales in United States, 1919-38; tonnage and value — 32-33 

CARTELS: 

European Dye Cartel, function of 20 

International Alkali Cartel 19 

Rubber thread: 

International Latex Products, Inc., and International Rubber 

Thread Association 21 

CENSUS OF THE UNITED STATES: 

Company and/ or plant coverage, limitations of 6, 13 

Value of products, limitation of reported values 13 

321 



322 INDEX 

CERTAIN-TEED PRODUCTS CORPORATION: Page 

Controlled by Celotex Corporation, operating relationship 37-38 

Orifiin of 35 

CHEMICALS AND ALLIED INDUSTRIES: 
Monopolistic elements: 

Effect of reduction or removal of duties; comment and table 9.. 18 
CLAY PRODUCTS. See Stone, Clay, and Glass Products. 
COMMITTEE FOR RECIPROCITY INFORMATION. Stenogra- 
pher's minutes of hearings; cited (n.) 55,67 

CONSUMERS' COST: 

Rayon-yarn import restrictions 86 

Sugar import restrictions, 1929-39; comment and table 32 82-83 

Tariff protection, calculation of 79 

CORN PRODUCTS REFINING CO.: 

Antitrust litigation, 1916-19 15 

CUSTOMS ADMINISTRATIVE ACT (1938): Effect of 3 

DOUGLAS FIR EXPORT CO.: 

Webb-Pomerene Act Association 71 

DUMPING: 

Customs Administrative Act, effect of 3 

ELECTRICAL MACHINERY, EQUIPMENT, AND RELATED 
PRODUCTS: 

Monopolistic elements: 

Effects of reduction or removal of duties; comment and table 16-_ 25-26 
FLAT-GLASS INDUSTRY: 

Automotive companies entering industry 51 

Concentration trends 50-55 

Cost investigations by United States Tariff Commission 44, 45 

Exports, 1932-37, value 47-48 

Glossary 43 

Imports, 1880-1900, percentage; 1923-37, value 47-48 

Laminated glass: 

Dominant position of largest manufacturers due to contractual 

relations with automobile manufacturers 54 

Mechanization of the industry extended to all branches by 1930 47 

Plate glass. See Plate Glass Industry. 

Polished wire glass. See below Rolled and polished wire glass. 

Presidential proclamations changing duties 44-45 

Production, 1880-1900, percentage increase; 1900-37, value increase.. 47-48 

Products 43 

Raw materials consumed 46 

Rolled and polished wire glass: 

Price, 1913-38; in specified years; comment and table 24-- 53 

Tariff history _ 44 

Types of glass not separately reported in census statistics; rolled, 

structural, and laminated glass 49-50 

Window glass. See Window Glass Industry. 
FOOD INDUSTRIES: 

Monopolistic elements: 

Effect of reduction of duties; comment and table 6 14 

FORD MOTOR CO.: 

Laminated glass requirements produced by the company 54 

GLASS PRODUCTS. See Stone, Clay, and Glass Products. 
GYPSUM INDUSTRY: 

Basing-point price policy 38 

Building products sold in the United States 1937-38; tonnage and 

value, by products; table 19-., 32 

Concentration trends in the industry, 1902-38..^ 34-37 

Domestic production, imports and exports 30-32 

Freight equalization 38 

Kecnc's cement: 

Sales in U. S., 1919-38; tonnage and vahie 32-33 

Monopoly and tariff protection: An evaluation of existing conditions. 41-42 

Organizational structure, 1938 40 

Patent-license agreements: 

National Gypsum Co 37 

United States Gypsum Corporation 37 

Price: 

1930-38. Average unit value, f. o. b. and delivered prices to 

U. S. Government in the District of Columbia; table 20 40 



INDEX 323 

GYPSUM INDUSTRY— Continued. " Page 

Price behavior 38-39 

Price structure changes, 1926-35 36-37 

Tariff history 29 

Tariff Act of 1913 (Underwood): 

Duties primarily for revenue 41 

Rate of duty 30 

Tariff Act of 1922 (McCumber-Fordney) : 

Duties of a protective nature 41 

Rate of duty 30 

Tariff Act of 1930 (Hawley-Smoot) : 

Duties of a protective nature 41 

Rate of duty 30 

Trade association of industry: G3'psum Industries Association: 

Opposed to concession on calcined gypsum in trade agreement 

with United Kingdom 41 

Organized in 1913 34 

Transportation charges: 

Rail, from center of domestic industry, Kansas, to New York 

City, comparison with ocean rates from the United Kingdom-. 33 
HAWLEY-SMOOT TARIFF. See Tariff Act of 1930. 
IMPORT TARIFFS: 

Liberalization, effect of 5 

INDUSTRIAL CONCENTRATION: 
Degree of concentration: 

Relation to tariff reduction 15 

INDUSTRIAL CONCENTRATION SAMPLE: 
Products (1807) of census of 1937: 

Duty status and tariff effects in 1937; table 2 8 

Index of concentration, table 1 6 

Tariff effects in 1937; table 3 9 

INDUSTRIAL CONCENTRATION (HIGH), SAMPLE: 

Agricultural and automotive products (18) of the census of 1937: 

Effectiveness of tariffs in 1937; table 14 24 

Chemicals, and allied products (49) mainly of census of 1937: 

Effectiveness of tariffs in 1937, table 9 18 

Food products (18) of census of 1937: 

Effectiveness of tariffs in 1937, table 6 14 

Iron and steel products (27) of census of 1937: 

Effectiveness of tariff in 1937, table 13 23 

Machine-tool products (28) of the census of 1937: 

Effectiveness of tariffs in 1937, table 15 25 

Nonferrous products (10), mainly from the census of 1937: 

Effectiveness of tariffs in 1937, table 12 23 

Products (317) of census of 1937: 

Duty status in 1937, table 4 10 

Effectiveness of tariffs in 1937, table 5 10 

Rubber and leather products (9) of census of 1937: 

Effectiveness of tariffs in 1937, table 10 20 

Stone, clay, and glass products (27), mainly from the census of 1937: 

Effectiveness of tariffs in 1937; table 11 22 

Textile products (38), mainly of census of 1937: 

Effectiveness of tariffs in 1937; table 7 16 

Wood and paper products (16), mainly of the census of 1937: 

Effectiveness of tariffs in 1937, table 8 17 

INTERNATIONAL HARVESTER CO.: 

Formation by merger in 1902 24 

INTERNATIONAL LATEX PRODUCTS, INC., BIRMINGHAM, 
ENGLAND: 

American rubber companies, members of 21 

INTERNATIONAL RUBBER THREAD ASSOCIATION, Zurich, 
Switzerland: 

American rubber companies, members of 21 

INTERNATIONAL TRADE: 

Expansion elements 5 

IRON AND STEEL PRODUCTS: 
Monopolistic elements: 

Effect of reduction or removal of duties; comment and table 13 23 

JAMES, DR. CLIFFORD. Industrial concentration and tariffs. Mono- 
graph 10, T. N. E. C. 



324 INDEX 

Page 
KEENE'S CEMENT. Sales in U. S., 1919-38; tonnage and value.. . 32-33 

KREPS, THEODORE,.!. Letter of tran.smittal signed by . IX-X 

LAMINATED GLASS. 6Vc Flat-Glass Industry. 
LEATHER PRODUCTS. See Rubber and Leather Products. 
LUMBER INDUSTRY. See Softwood Lumber Industry. 
MACHINE TOOLS AND EQUIPMENT: 
Monopolistic elements: 

Effects of reduction or removal of duties; comment and table 15 .. 24-25 
McCUMBER-FORDNEY TARIFF. See Tariff Act of 1922. 
MONOPOLISTIC ELEMENTS: 

Agricultural and automotive machinery: 

Effects of reduction or removal of duties; comment and table 14 24 

Chemicals and allied products: 

Effect of reduction or removal of duties; comment and table 18 

Electrical machinery, equipment and related products: 

Effects of reduction or removal of duties ; comment and table 25-26 

Food industries: 

Effect of reduction of duties; comment and table 6 14 

Iron and steel products: 

Effect of reduction or removal of duties; comment and table 13 23 

Machine tools and equipment: 

Effects of reduction or removal of duties; comment and table 15 24-25 

Nonferrous metals and products: 

Effects of reduction or removal of duties; comment and table 12 23 

Rubber and leather products: 

Effect of reduction or removal of duties; comment and table 10 20 

Stone, clay, and glass products: 

Effect of reduction or removal of duties; comment and table 22 

Textiles and allied products: 

Effective of reduction or removal of duties; comment and table 7. 16 

Wood and paper products: 

Effect of reduction or removal of duties; comment and table 8 17 

MONOPOLY: 

Wet-milling industry, control attempts 17 

NONFERROUS METALS AND PRODUCTS: 
Monopolistic elements: 

Effects of reduction or removal of duties; comment and table 12.. 23^ 
PAPER AND WOOD PRODUCTS. See Wood and Paper Products. 
PATENT POOLS: 

Rubber thread and varn 21 

PLATE GLASS INDUSTRY: 

Imports, 1914-38, volume. 48 

Prices: 

1913 39. Quoted price, f. o. b. plants, glazing quality, cut sizes 

specific vears; comment and table 22 51 

Plate glass tariff duties, 1913-30; table 44 

POLISHED WIRE GLASS. See Flat-Glass Industry. 
POTASH INDUSTRY: 

Industrial relationships: 

Borates industry 19 

Sherman Act violation 19 

PRICE POLICIES: 

Basing-point. See Basing-point Price Policies. 
RAYON YARN: 

Classification 86 

Consumers' cost of import restrictions 1937-38; comment and table 34. 86-89 

Development of in the United States 16 

RECIPROCAL TRADE AGREEMENTS. Effect of 5 

ROLLED GLASS. See Flat Glass Industry. 
RUBBER AND LEATHER PRODUCTS: 
Monopolistic elements: 

P'ifTect of reduction or removal of duties; comment and table 10.. 20 
RUBBER THREAD INDUSTRY: 

Concentration in 21 

Interlocking relationships 21 

Patent pools 21 

SAMPLING. Method employed in study 5-7 



INDEX 325 

SCHATTSCHNEIDER, E. E. Politics, pressures, and the tariff; cited Page 
(n.) X 

SHERMAN ACT VIOLATIONS: 

Potash industry 19 

SLIDE FASTENERS INDUSTRY: 

Concentration in 27 

SODA ASH INDUSTRY: 

Basing-point price policy 19 

Concentration in 19 

Industrial relationships: 

Borates industry 19 

SOFTWOOD LUMBER INDUSTRY: 
Conservation relationships: 

Import trade restriction 71 

Public standards for forest utilization 71 

Exports: Canada: 

1933-39. Sawed softwood lumber and timber: total exports, 
board feet and value; exports to the United Kingdom, exports 

to United States, board feet and value; table 29 75 

Exports: United States: 

1919-37. See below Imports and Exports. 

1933-39. Sawed softwood lumber and timber: total exports, 
board feet and value; exports to United Kingdom, board feet 

and value; table 28 74 

Imports: 

1931-39. Sawed softwood lumber and timber: imports for con- 
sumption by principal species, board feet; total imports board 

feet and value; table 27 73 

Imports and exports: 

1919-37. Comparison of production, imports and exports: speci- 
fied years; board feet; ratio imports and exports to domestic 

production; table 26 72 

N. I. R. A. code 71 

Price: 

1931-37. Unit value at mill, by species; table 25 70 

Production: 

1919-37. Comparison of production, imports and exports: speci- 
fied years; board feet; ratio, imports and exports to domestic 

production ; table 26 72 

1931-37. Quantity, by species; board feet; table 25 70 

Tariff history 68-70 

Trade balance: 

Canada, the United Kingdom, and United States, 1939 75 

STEEL PRODUCTS. See Iron and Steel Products. 
STONE, CLAY, AND GLASS PRODUCTS: 
Monopolistic elements: 

Effect of reduction or removal of duties; comment and table 11 _ 22 
SUGAR: 

Consumption: 

1929-39, refined, tons; raw, lbs.; table 32.-_ 83 

Cuban gains under quotas: 

1933-39. Sales to United States (pounds), excess of New York 
price over world price; Cuban gains; 1933, 1935-39; table 33..- 85 
Import restrictions: 

Consumers' cost, 1929-39; comment and table 32 82-83 

Imports and exports: 

1929-38. Imports by origin, exports total: specified years, short 

tons; table 30 81 

Jones-Costigan Act, May 9, 1934: 

Quota system established 80, 8 1 

Quota system extended by Sugar Act of 1937, Sept. 1 81 

Price : 

1929-39. London, New York basis. New York, New York includ- 
ing duty, spread between London c. f. and New York including 

duty; table32 83 

Production: 

1929-38. Cane and beet: specified years, short tons; table 30 

Sugar Act, Sept. 1, 1937, provision of 81 

Tariff rates, 1913-39; table 31 82 



326 INDEX 

Page 
TALON, INC. Patent holdings 27 

TARIFF ACT OF 1913, OCT. 3 (UNDERWOOD TARIFF): 
Rates: 

Plate glass 44 

Rayon yarn 86 

Softwood hunbcr 68 

TARIFF ACT OF 1922, SEPT. 21, (McCUMBER-FORDNEY 
TARIFF): 
Rates: 

Plate glass 44 

Rayon yarn 86 

Softwood lumber 68 

TARIFF ACT OF 1930, JUNE 17 (HAWLEY-SMOOT TARIFF): 
Rates: 

Plate glass 44 

Rayon yarn 86 

Softwood lumber 68 

TARIFF LEGISLATION. Trend of, 1860-1939 4 

TAUSSIG, F. W. Principles of economics; cited (n.) IX 

TEXTILES AND ALLIED PRODUCTS: 
Monopolistic elements: 

Effect of reduction or removal of duties; comment and table 7__ 16 
TRADE AGREEMENTS: United States: 

1934, Sept. 3. Cuba; sugar rates 82 

1935, May 1. Belgium; plate glass rates 44 

1936, Jan. 1. Canada (1st); lumber duty 68 

1936, Feb. 1. Netherlands; tropical starches, revision requested by 

American industry in 1938 15 

1936, Feb. 15. Switzerland; coal-tar dye rate 19 

1938, Apr. 16-1939, Apr. 22. Czechoslovakia; sheet glass rates 45 

1939, Jan. 1. Canada (2d) ; lumber duty 68 

1939, Dec. 27. Cuba; sugar rates 82 

UNDERWOOD TARIFF. See Tariff Act of 1913. 
UNITED STATES DEPARTMENT OF JUSTICE: 

Potash industry investigation 19 

UNITED STATES FEDERAL TRADE COMMISSION: 

Report on the agricultural implement and machinery industry, 1938; 

cited (n.) 24 

UNITED STATES TARIFF COMMISSION: 

Flat glass and related glass products; cited (n.) 43 

UNITED STATES ALKALI EXPORT ASSOCIATION, INC. Organ- 
ized under Webb-Pomerene Act 19 

UNITED STATES GYPSUM CORPORATION. Interlocking relation- 
ships 35 

WATKINS, MYRON W. Industrial combination and public policy; 

cited (n.) 15 

WEBB-POMERENE ACT; Apr. 10, 1918: 

Douglas Fir Export Co. organized under act 71 

Effect of act ■ 3 

United Statics Alkali Export Association, Inc., organized under act.. 19 

WET-MILLTNG INDUSTRY. Monopolistic control attempts 15 

WINDOW GLASS INDUSTRY: 

Capacity of industry, 1900-35 48 

Manufacturing processes, 1900 to date 48 

Prices: 

1913-36. Common window glass, av. quoted wholesale prices 

f. o. b. plant, per box, in specified years; comment and table 23. 52 

Production, imports and exports summarized 49 

WOOD AND PAPER PRODUCTS: 
Monopolistic elements: 

Effect of reduction or removal of duties; comment and table 8 17 

ZIPPER INDUSTRY. See Slide Fasteners Industry. 

o 



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