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

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

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

' 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.

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

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

plants

Domestic

production

value in

1937

Percent

Monopolistic elements in domestic industries

9
None

516

218
175

691

223
210

$279, 752, 328

1, 556, 989
149, 898, 354

64.9

Duties restrictive, but monopolistic elements
not significant

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.

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

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

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

4
4

41
42
3

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

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

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.-.

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

None

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

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

1
12

None

140

14
172

240

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

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 .- -- --

1
3

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-

17.7

> 1.7

Total

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

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

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

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

1
8
2

44
177
42

49
264
44

$10, 964, 604

14, 817. 049

2, 919, 363. 279

243, 993, 829

Duties restrictive, but monopolistic elements
not significant

Duties not restrictive, no effect on monopoly. _

99.13

Total

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

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

None

70
225

71
231

$31,191,986

25, 063, 992
123,412,092

17.3

Duties restrictive, but monopolistic elements not
significant

Duties not restrictive, no effect on monopoly

Free of duty

68.7

Total

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.

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

plants

Domestic production

duties

Value in 1937

Percent

Monopolistic elements in domestic industries
partially mititrated

Duties restrictive, but monopolistic elements
not significant

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

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

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

12
10

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

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.

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-

. 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.

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>.^
19?4

} 22

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

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

''9

.52

.85

.60

■ .50

.42

.35

.27

.36

.58

. 88

.68

.53

.45

.37

.29

.43

.71

1.00

.82

.62

.54

.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.

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

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

1929

1930

1931

.46
.45
.43

1932

1934

1936

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

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.

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.

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

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

3
2

Percent
4

1923

1925

1927

1929

1931 -

1932

1933

1934

1935

1936

1937

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

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

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

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.

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

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

1,018

762

928

910

892

918

Virgin Islands

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

818

2,409

1,230

1,552

965

2,089

143

952
1,879

144

951

1,872

All other countries (full duty)

Total imports

4,377

3,257

2,830

3,197

2,974

2,902

Exports from United States customs area '

103

^ 70

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

1.256

Act of 1921

2.0

Acton922

2.206

Actofl930

2.5

Presidential proclamation (effective June 8, 1934) ..

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

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

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

663,078,060

100.0

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

7
7

$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

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

Total .-

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.

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, 804, 123, 037

972, 061, 418

389, 435, 472

3, 324, 522

57.0

60 to 74

30 6

49 or less

12.3

Total

832, 833, 263

100.0

365

3, 168, 944, 449

100.0

XIV. Transportation

XVI. Miscellaneous

75 or more

$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

Total

2,848,786,150

100.0

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

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

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

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

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CONCENTRATION OF ECONOMIC POWER

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CONCENTRATION OF ECONOMIC POWER

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CONCErsTTRATION OF EiCONOMIC POWER

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CONCENTRATION OF ECONOMIC POWER

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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

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

$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 locatants

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

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

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

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)
(')

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

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

...

$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

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

(')

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

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

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

$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

$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

$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 ---

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

$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 - -

$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 -- ---

$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

$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

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...

$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

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

$26,464,753

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

$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

(')

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

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

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

$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

$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

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

$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

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

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

$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

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«

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 -

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 -

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

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

$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

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

$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

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

$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

•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 -

$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

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

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

$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

$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

$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

(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

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 - - -

> 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

$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

(1)

1937

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

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

' 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

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

$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

$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

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

'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 . .

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 ..

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

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

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

«■

$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 .—

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

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

$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

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

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

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

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 . .

■"

$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

1937

' 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

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

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

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

(')

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

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

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

$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

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

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

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

'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

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

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..

$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..

$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

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— - - t 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

.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-

$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

$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 -

$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

$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

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

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

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

•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

.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

»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.... —

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

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

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

'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

('^

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

>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 .

$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

'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

$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

(')

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

1937 . .

' 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

$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

$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 -

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

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

$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

(')

1937

» 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

■ 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

('■'

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

$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

$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

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

$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

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

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. . —

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 - ---

' 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

$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

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

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

$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

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 -

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

$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

$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

$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

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

$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- ___

$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

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

$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 . -

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

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.

' 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

$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

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

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

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

$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

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

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

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 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

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

$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

(')

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

$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. —

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

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

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)

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

$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

$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

$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

$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

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

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 ..

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

$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

■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

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

$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

$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

122

$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

$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

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

»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

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

'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

' 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

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

(')

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

8 185

$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

'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

$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

(')

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

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

.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

$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 -

$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

(?)

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

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

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

$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

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

$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)

» 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.

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..

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

$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

(')

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

$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

$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

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

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 --

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

(')

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

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

(')

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

•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

$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

$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 _

' 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 . .

$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

{')

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

$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

$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

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

.»

$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

(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

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

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

('■)

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 concl 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

$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

•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

$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

(')

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

(')

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

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

$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

'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

'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

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 ..

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

$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

$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

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 -- -- -

$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

$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

$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

$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

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

$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

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

$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

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

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 --

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 ...

$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

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

$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

«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

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

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 . _ .

: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

$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)

1937

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

$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 -.

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

$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

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

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

$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

(')

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

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

$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

$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

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

$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

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

>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

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.

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