^^3d SeSfo^n^^^ SENATE COMMITTEE PRINT
INVESTIGATION OF CONCENTRATION
OF ECONOMIC POWER
TEMPORARY NATIONAL ECONOMIC
COMMITTEE
A STUDY MADE UNDER THE AUSPICES OF THE BUREAU
OF LABOR STATISTICS 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. 33-35
GEOGRAPHICAL DIFFERENTIALS IN PRICES
OF BUILDING MATERIALS
Printed for the use of the
Temporary National Economic Committee
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1940
riORTHEASTERN UNIVERSITY SGHOOtof LAWDBRM^
'Alternates.
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. KINQ, Senator from Utah
WALLACE H. WHITE, JK., Senator from Maine
CLYDE WILLIAMS. Representative from Missouri
B. CARROLL REECE, Representative from Tennessee
THURMAN W. ARNOLD, Assistant Attorney General
•WENDELL BERQE, Special Assistant to the Attorney General
Representing the Department of Justice
JEROME N. FRANK, Chairman
•SUMNER T. PIKE, Commissioner
Representing the Siicurities and Exchange Commission
GARLAND S. FERGUSON, Commissioner
•EWIN L. DAVIS, Chairman
Representing the Federal Trade Commission
ISADOR LU:^ IN, Commissioner of Labor Statistics
•A. FORD HINRICHS, Chief Economist, Bureau of Labor Statistics 'CD
Representing the Department of Labor r^
JOSEPH J. O'CONNELL, Jr., Special Assistant to the General Counsel 2-
•CHARLES L. KADES, Special Assistant to the General Counsel
Representing the Department of the Treasury _^_
CO
Representing the Department of Commerce f "j
• • • UJ
LEON HENDERSON, Economic Coordinator C3
DEV/EY ANDERSON, Executive Secretary
THEODORE J. KREPS, Economic Adviser
Monograph No. 33
GEOGRAPHICAL DIFFERENTIALS IN PRICES OF BUILDING
MATERIALS
BY
WALTER G. KEIM
REPRINTED
BY
WILLIAM S HEIN & CO , INC
BUFFALO. N Y.
1968
ACKNOWLEDG-MENT
This monograph was written by
WALTER G. KELM
Assisted by
Grace F. Grosvenor
Joseph W. Lethco
Philip H. Blaisdell
Under the general supervision of
Aryness Joy
United States Department of Labor,
Bmx'au of Labor Statistics
The Temporary National Economic Committee is greatly indebted
to the author 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 statementin such testimony,
reports, or monographs rests entirely upon the respective authors.
(Signed) Joseph C. O'Mahoney,
Chairman, Temporary National Economic Committee.
TABLE OF CONTENTS
Page
Letter of transmittal xix
Preface xxi
CHAPTER I
Introduction ._. 1
Scope of study , 4
Materials considered 5
Methods of collection 6
Description of information 7
Preparation of summary data 9
CHAPTER II
Summary and conclusions 11
Areas of production 11
Concentration of production , 12
Market structure 13
Geographical pricing practices , 13
(a) "One price" f. o. b. plant system 14
(b) Unsystematic price variation 15
(c) Systematic freight equalization 15
(d) Basing point system 15
(e) Zone price structure 16
(/) Uniform delivered prices 17
ig) M iscellaneous geographical structure 17
Quantity and functional discounts 18
Cash discounts and terms 19
Protection against price changes 19
Other allowances 20
Channels of distribution 20
Wholesale markets 20
Sales direct to users 1. 21
Indirect sales — company-owned or company-controlled
channels 21
Exclusive dealerships 21
Independent distributors 22
Retail markets 22
Price levels and trends 22
Wholesale prices 22
Retail prices 24
Geographical differentials 25
Differences between wholesale and retail prices 27
CHAPTER III
Insulation board 29
Description of the industry 29
Channels of distribution 29
Price structure 30
Delivery practices 30
Wholesale commissions .- 30
Quantity and other discounts : 31
Price guarantees 31
Price levels and trends 32
Wholesale price levels 32
Wholesale price trends 32
Geographical variations in retail prices 32
V
VI TABLE OF CONTENTS
CHAPTER IV Page
Plaster 47
Description of the industry 47
Price structure 47
Channels of distribution 47
Discounts 47
Specifications 47
Price levels and trends ^".l, 49
Geographical differences in prices and spreads. 49
Trend of prices 51
CHAPTER V
Asphalt roofing 65
Description and location of the industry 65
Price structure 66
Classification of products 66
Distribution policies 66
Pricing practices 66
Quantity discounts 68
Delivery 69
Method of handling orders 69
Terms of payment 70
Price levels and trends 70
Geographical variations in prices and spreads 70
Price trends 74
Wholesale markets 74
Retail markets 74
CHAPTER VI
Cement 89
Description of the industry 89
Nature of the commodity 89
Industrial trends 90
Concentration 91
Price structure 91
Channels of distribution 91
Basing point prices 91
Price levels and trends 91
Geographical variations in levels and spreads 91
Wholesale and retail price trends 92
CHAPTER VII
Hydrated lime 105
Description of the industry 105
Nature of the product 105
Production statistics 105
Price structure 105
Price levels and trends 107
Geographical variations in prices and spreads 107
Wholesale and retail price trends 109
CHAPTER VIII
Paints and varnishes 123
Description of the industry 123
Price structure 125
Zone delivered prices . 125
Channels of distribution 126
Method of pricing 126
Quantity and other discounts 127
Price levels and trends 128
Outside paint , 128
Inside paint 140
Enamel 150
Varnish ^ 162
TABLE OF CONTENTS VH
CHAPTER IX Page
White lead 175
Description of the industry 175
Price structure 175
Price levels and trends 175
Geographical differences 175
Wholesale and retail price trends 176
CHAPTER X
Linseed oil 189
Description of the industry 189
Price structure 189
Price levels and trends 190
Geographical differences in prices and spreads 190
Price trends 191
CHAPTER XI
Turpentine 205
Description of the industry 205
Price structure 205
Channels of distribution 205
Delivered prices 205
Price levels and trends . ■ 206
Geographical variations 206
Price trends 207
CHAPTER XII
Douglas fir 219
Description of the industry . 219
Price structure 221
Channels of distribution and commissions 221
Principal sales area 221
Price levels and trends 222
CHAPTER XIII
Oak flooring 235
Description of the industry 235
Price structure 237
Basing point system _! 237
Channels of distribution 238
Price levels and trends 238
Prices and transportation costs _ 288
Geographical differences in prices and spreads 341
Price trends 242
CHAPTER XIV
Yellow pine 257
Description of the industry 257
Price structure ^59
Method of computing delivered prices 259
Commission to distributor 260
Price levels and trends 260
Prices and spreads 260
Price trends 261
CHAPTER XV
Ponderosa pine 269
Description of the industry . 269
Price structure 271
Price levels and trends _.- 272
Geographical differences 272
Price trends 272
CHAPTER XVI
White pine 28 1
VIII TABDE OF CONTENTS
CHAPTER XVII Page
Doors..-- 285
Description of industry 285
Price structure . . 287
List prices 1 287
Zone diflferentiak 287
Price levels and trends 289
Geographical differences in levels and spreads 289
Price trends . . 290
CHAPTER XVIII
Windows 303
Description of industry . 303
Price structure 305
Price levels and trends 305
Geographical variations 305
Price trends 306
CHAPTER XIX
Heating equipment . 317
Heating boilers and radiation 317
Description of industry 317
Geographical price structure 318
Channels of distribution 319
Trade, quantity, and other discounts 319
Freight allowances 320
Other terms of sale 321
Price levels and trends 321
Heating boilers 321
Geographical variations in prices and spreads 321
Price trends . 323
Radiation. 336
Geographical variations in prices and spreads 336
Price trends 336
CHAPTER XX
Range boilers 35l
Description and location of industry 35l
Concentration 35l
Production 35l
Specifications . 35^
Price structure 35l
Zone freight system 35l
List prices and discounts 352
Price levels and trends 352
Wholesale 353
Retail 354
CHAPTER XXI
Plumbing supplies 365
Description and location of industry ^. 365
Specifications 368
Channels of distribution 368
Price structure 369
List prices and discounts , . 369
Freight allowances 369
Terms and conditions of sale 369
Price levels and trends 370
Closets 370
Lavatories 370
Sinks 371
Bath tubs 371
TABLE OF CONTENTS IX
CHAPTER XXII Page
Structural clay products 379
Description and location of industry 379
Conceotnation of ownership ^ . 381
Items produced in industry .* 381
Commodity specifications 381
Price structure 381
Wholesale pricing system. 381
Discounts and payment terms 382
Price levels and trends 383
Common building brick 383
Face brick 384
Hollow building tile 386
Floor tile 388
Sewer pipe ^ 389
CHAPTER XXIII
Window glass 403
Description of industry 403
Price structure 404
Price Lists j. 404
Channels of distribution 404
Freight equalization. 404
Price levels and trends 406
Geographical variations ._ , 406
Price trends •_ . 406
CHAPTER XXIV
Sand, gravel, and crushed stone 409
^Description of industry. ^ 409
frice structure ; 409
Price levels and trends 409
Stone 411
Gravel 411
Sand 414
CHAPTER XXV
Ready-mixed concrete 431
Price levels 434
Price trends : ... 431
\
APPENDIX A ,
Differentials in prices between a large city and its outlying districts 439
APPENDIX B
Miscellaneous tabular data 443
APPENDIX c
Commodity specifications for building materials included in survey 447
SCHEDULE OF TABLES, CHARTS, AND MAPS
CHAPTER II. SUMMARY AND CONCLUSIONS
Table Page
1 Summary of trends in wholesale prices of building materials for four
periods, 1935 to 1939 23
2. Distribution of geographical areas according to ranks based on relative
levels of building material prices in September 1939 26
3. Geographical diflferentials in wholesale prices 26
4. Geographical differentials in retail prices 27
5. Wholesale and retail prices and spreads, September 1939 28
CHAPTER III. INSULATION BOARD
6. Typical wholesale and retail prices for selected cities, September 1939. 35
7. Wholesale and retail price indexes: Composite United States average. 36
8. Wholesale and retail price indexes: Region I. New England 37
9. Wholesale and retail price indexes : Region II. Middle Atlantic 38
10. Wholesale and retail price indexes: Region III. East North Central-- 39
11. Wholesale and retail price indexes: Region IV. West North Central--. 40
12. Wholesale and retail price indexes : Region V. South Atlantic 41
13. Wholesale and retail price indexes : Region VI. East South Central — 42
14. Wholesale and retail price indexes: Region VII. West South Central. _ 43
15. Wholesale and retail price indexes: Region VIII. Rocky Mountain — 44
16. Wholesale and retail price indexes: Region IX. Pacific 45
CHAPTER IV. PLASTER
17. Typical wholesale and retail prices for selected cities, September 1939. 52
18. Wholesale and retail price indexes: Composite United States average- 54
19. Wholesale and retail price indexes: Region I. New England 55
20. Wholesale and retail price indexes: Region II. Middle Atlantic 56
21. Wholesale and retail price indexes: Region III. East North Central-.. 57
22. Wholesale and retail price indexes: Region IV. West North Central.-- 58
23. Wholesale and retail price indexes : Region V. South Atlantic 59
24. Wholesale and retail price indexes: Region VI. East South Central 60
25. Wholesale and retail price indexes: Region VII. West South Central..- 61
26. Wholesale and retail price indexes : Region VIII. Rocky Mountain 62
27. Wholesale and retail price indexes: Region IX. Pacific 63
CHAPTER V. ASPHALT ROOFING
28. Geographical distribution of production 66
29. Typical wholesale and retail prices for selected cities, September 1939- 77
30. W'holesale and retail price indexes: Composite United States average. 78
31. Wholesale and retail price indexes: Region I. New England 79
32. Wholesale and retail price indexes: Region II. Middle Atlantic 80
33. Wholesale and retail price indexes: Region III. East North Central-- 81
34. Wholesale and retail price indexes: Region IV. West North Central-. 82
35. Wholesale and retail price indexes: Region V. South Atlantic 83
36. Wholesale and retail price indexes: Region VI. East South Central.. 84
37. Wholesale and retail price indexes: Region VII. West South Central.. 85
38. Wholesale and retail price indexes: Region VIII. Rocky Mountain 86
39. Wholesale and retail price indexes: Region IX. Pacific 87
40. All-rail freight rates for asphalt roofing from nearest shipping point
to selected destinations, January 1935 to December 1938 88
X
SCHEDULE OF TABLES, CHARTS, AND MAPS XI
CHAPTER VI. CEMENT
Table Page
4L Wholesale and retail price indexes: Composite United States average. 94
42. Wholesale and retail price indexes : Region I. New England 95
43. Wholesale and retail price indexes: Region II. Middle Atlantic 96
44! Wholesale and retail price indexes: Region III. East North Central-- 97
45. Wholesale and retail price indexes: Region IV. West North Central... 98
46. Wliolesale and retail price indexes : Region V. South Atlantic. .. 99
47. Wholesale and retail price indexes : Region VI. East South Central 100
48. Wholesale and retail price indexes: Region VII. West South Central.. 101
49. Wholesale and retail price indexes: Region VIII. Rocky Mountain.. 102
50. Wholesale and retail price indexes: Region IX. Pacific 103
CHAPTER VII. LIME
51. Typical wholesale and retail prices for selected cities, September 1939. Til
52. Wholesale and retail price indexes: Composite United States average. 112
53. Wholesale and retail price indexes: Region I. New England 113
54. Wholesale and retail price indexes : Region II. Middle Atlantic 114
55. Wholesale and retail price indexes: Region III. East North Central.. 115
56. Wholesale and retail price indexes: Region IV. West North Central.. 116
57. Wholesale and retail price indexes: Region V. South Atlantic 117"
58. Wholesale and retail price indexes: Region VI. East South Central... 118
59. Wholesale and retail price indexes: Region VII. West South Central. 119
60. Wholesale and retail price indexes: Region VIII. Rocky Mountain 120
61. Wholesale and retail price indexes : Region IX. Pacific 121
CHAPTER VIII. PAINTS AND VARNISHES
62. Geographical distribution of production 123
OUTSIDE HOUSE PAINT
63. Wholesale and retail price indexes: Composite United States average. 130
64. Wholesale and retail price indexes: Region I. New England 131
65. Wholesale and retail price indexes : Region II. Middle Atlantic 132
66. Wholesale and retail price indexes: Region III. East North Central.. 133
67. Wholesale and retail price indexes : Region IV. West North Central.. 134
68. Wholesale and retail price indexes: Region V. South Atlantic 135
69. Wholesale and retail price indexes: Region VI. East South Central... 136
70. Wholesale and retail price indexes: Region VII. West South Central. 137
71. Wholesale and retail price indexes: Region VIII. Rocky Mountain.-. 138
72. Wholesale and retail price indexes: Region IX. Pacific 139
INSIDE HOUSE PAINT
73. Wholesale and retail price indexes: Composite United States average .
74. Wholesale and retail price indexes: Region I. New England
75. Wholesale and retail price indexes : Region II. Middle Atlantic
76. Wholesale and retail price indexes: Region III. East North Central..
77. Wholesale and retail price indexes: Region IV. West North Central..
78. Wholesale and retail price indexes: Region V. South Atlantic
79. Wholesale and retail price indexes: Region VI. East South Central...
80. Wholesale and retail price indexes: Region VII. West South Central..
81. Wholesale and retail price indexes: Region VIII. Rocky Mountain...
82. Wholesale and retail price indexes : Region IX. Pacific
140
142
143
144
145
146
147
148
149
150
INTEKIOR ENAMEL
83. Wholesale and retail price indexes: Composite United States average. 151
84. Wholesale and retail price indexes: Region I. New England 153
85. Wholesale and retail price indexes: Region II. Middle Atlantic... 154
86. Wholesale and retail price indexes: Region III. East North Central. . 155
87. Wholesale and retail price indexes: Region IV. West North Central.. 156
88. Wholesale and retail price indexes: Region V. South Atlantic 157
89. Wholesale and retail price indexes: Region VI. East South Central 158
90. Wholesale and retail price indexes: Region VII. West South Central. 159
91. Wholesale and retail price indexes: Region VIII. Rocky Mountain 160
92. Wholesale and retail price indexes: Region IX. Pacific 161
Xn SCHEDULE OF TABLES, CHABTS; AND MAPS
INTERIOR VARNISH
Table Page
93. Wholesale and retail price indexes: Composite United States average.. 164
94. Wholesale and retail price indexes: Region I. New England 165
95. Wholesale and retail price indexes: Region II. Middle Atlantic 168
96. Wholesale and retail price indexes: Region III. East North Central. . 167
97. Wholesale and retail price indexes: Region IV. West North Central. . 168
93. Wholesale and retail price indexes: Region V. South Atlantic 169
99. Wholesale and retail price indexes: Region VI. East South Central 170
100. Wholesale and retail price indexes: Region VII. West South Central. . 171
101. Wholesale and retail price indexes: Region VIII. Rocky Mountain 172
102. Wholesale and retail price indexes : Region IX. Pacific 173
CHAPTER EX. WHITE LEAD
103. Wholesale and retail price indexes: Composite United States average.. 178
104. Wholesale and retail price indexes: Region I. New England 179
105. Wholesale and retail price indexes : Region II. Middle Atlantic 180
106. Wholesale and retail price indexes: Region III. East North Central.. 181
107. Wholesale and retail price indexes: Region IV. West North Central... 182
108. Wholesale and retail price indexes: Region V. South Atlantic 183
109. Wholesale and retail price indexes: Region VI. East South Central 184
110. Wholesale and retail price indexes: Region VII. West South Central.. 185
111. Wholesale and retail price indexes: Region VIII. Rocky Mountain 186
112. Wholesale and retail price indexes : Region IX. Pacific! 187
CHAPTER X. LINSEED Ott
113. Typical wholesale and retail prices for selected cities, September 1939. 193
114. Wholesale and retail price indexes: Composite United States average.. 194
115. Wholesale and retail price indexes: Region I. New England 195
116. Wholesale and retail price indexes: Region II. Middle Atlantic 196
117. Wholesale and retail price indexes: Region III. East North Central 197
1 18. Wholesale and retail price indexes: Region IV. West North Central 198
119. Wholesale and retail price indexes: Region V. South Atlantic 199
120. Wholesale and retail price indexes: Region VI. East South Central 200
121. Wholesale and retail price indexes: Region VII. West South Central. . 201
122. Wholesale and retail price indexes: Region VIII. Rocky Mountain 202
123. Wholesale and retail price indexes: Region IX. Pacific 203
CHAPTER XL TURPENTINE
124. Wholesale and retail price indexes: Composite United States average.. 209
125. Wholesale and retail price indexes: Region I. New England 210
126. Wholesale and retail price indexes: Region II. Middle Atlantic 211
127. Wholesale and retail price indexes: Region III. East North Central 212
128. Wholesale and retail price indexes: Region IV. West North Central.. 213
129. Wholesale and retail price indexes: Region V. South Atlantic 214
130. Wholesale and retail price indexes: Region VI. East South Central 215
131. Wholesale and retail price indexes: Region VII. West South Central. . 216
132. Wholesale and retail price indexes: Region VIII. Rocky Mountain 217
133. Wholesale and retail price indexes: Region IX. Pacific 218
CHAPTER XIL DOUGLAS FIR
134. Geographical distribution of Douglas fir production 219
135. Wholesale and retail price indexes: Composite United States average. _ 224
136. Wholesale and retail price indexes: Region I. New England 225
137. Wholesale and retail price indexes: Region II. Middle Atlantic 226
138. Wholesale and retail price indexes: Region III. East North Central — 227
139. Wholesale and retail price indexes: Region IV. West North Central. . _ 228
140. Wholesale and retail price indexes: Region V. South Atlantic 229
141. Wholesale and retail price indexes: Region VI. East South Central 230
142. Wholesale and retail price indexes: Region VII. West South Central. _ 231
143. Wholesale and retail price indexes: Region VIII. Rocky Mountain 232
1 44. Wholesale and retail price indexes: Region IX. Pacific 233
SCHEDULE OF TABLES. CHARTS, AND MAI'S XIII
CHAPTER Xm. OAK FLOORING
Table Page
145. Geographical distribution of oak lumber production, 1937 235
146. Ratio of transportation costs to wholesale delivered price of oak floor- 239
ing, September 1939 240
147. Freight charges on oak flooring 240
148. Typical wholesale and retail prices for selected cities, September 1939. 245
149. Wholesale and retail price indexes: Composite United States average. _ 246
150. Wholesale and retail price indexes: Region I. New England 247
151. Wholesale and retail price indexes: Region II. Middle Atlantic 248
152. Wholesale and retail price indexes: Region III. East North Central 249
153. Wholesale and retail price indexes: Region IV. West North Central 250
154. Wholesale and retail price indexes: Region V. South Atlantic 251
155. Wholesale and retail price indexes: Region VI. East South Central 252
156. Wholesale and retail price indexes: Region VII. West South Central. _ 253 •
157. Wholesale and retail price indexes: Region VIII. Rocky Mountain 254
158. Wholesale and retail price indexes: Region IX. Pacific 255
CHAPTER XIV. YELLOW PINE
159. Geographical distribution of yellow pine production 257
160. Wholesale and retail price inde.Kes: Composite United States average. _ 263
161. Wholesale and retail price indexes: Region I. New England 264
162. Wholesale and retail price indexes: Region II. Middle Atlantic 265
163. Wholesale and retail price indexes: Region III. East North Central 266
164. Wholesale and retail price indexes: Region V. South Atlantic 287
165. Wholesale and retail price indexes: Region VI. East South Central 268
CHAPTER XV. PONDEROSA PINE
166. Geographical distribution of ponderosa pine production, 1937 269
167. Wholesale and retail price indexes : Composite United States average. . 274
168. Wholesale and retail price indexes: Region I. New England 275
169. Wholesale and retail price indexes: Region III. East North Central 276
170. Wholesale and retail price indexes: Region IV. West North Central 277
171. Wholesale and retail price indexes: Region VIII. Rocky Mountain 278
172. Wholesale and retail price indexes: Region IX. Pacific 279
CHAPTER XVI. WHITE PINE
173. Geographical distribution of white pine production in 1937 281
CHAPTER XVH. DOORS
174. Geographical production of doors, 1937 285
,175. Zone differentials in wholesale prices of doors, September 1939 288
176. Wholesale and retail price indexes: Composite United States average. . 293
177. Wholesale and retail price indexes: Region I. New England 294
178. Wholesale and retail price indexes: Region II. Middle Atlantic 295
179. Wholesale and retail price indexes: Region III. East North Central 296
180. Wholesale and retail price indexes: Region IV. West North Central 297
181. Wholesale and retail price indexes: Region V. South Atlantic 298
182. Wholesale and retail price indexes: Region VI. Elast South Central 299
183. Wholesale and retail price indexes: Region VII. West South Central. _ 300
184. Wholesale and retail price indexes: Region VIII. Rocky Mountain 301
185. Wholesale and retail price indexes: Region IX. Pacific 302
CHAPTER XVIIL WINDOWS
186. Production of window sash, 1937 . 303
187. Wholesale and retail price indexes: Composite United States average. _ 308
188. Wholesale and retail price indexes: Region I. New^ England 309
189. Wholesale and retail price indexes: Region II. Middle Atlantic 310
190. Wholesale and retail price indexes: Region III. East North Central 310
191. Wholesale and retail price indexes: Region IV. West North Central 311
192. Wholesale and retail price indexes: Region V. South Atlantic 312
193. Wholesale and retail price indexes: Region VI. East South Central 313
194. Wholesale and retail price indexes: Region VII. West South Central. . 314
195. Wholesale and retail price indexes: Region VIII. Rocky Mountain 315
196. Wholes- le and retail price indexes: Region IX. Pacific 316
XIV
SCHEDULE OF TABLES, CHARTS, AND MAPS
Table
CHAPTER XIX. HEATING EQUIPMENT
197. Geographical distribution of plants producing heating and cooking
apparatus
19S. Typical freight allowances to selected cities in equalizing with nearest
producing plant
HEATING BOILERS
199.
200.
20i.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
214.
215.
216.
217.
218.
219.
220.
221.
222.
223.
224.
225.
226.
227.
228.
229.
230.
231.
232.
233.
234.
Typical wholesale and retail prices
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
for selected cities, September 1939-
: Composite United States average,
: Region I. New England
: Region IL Middle Atlantic
: Region III. East North CentraL
: Region IV. West North Central.
: Region V. South Atlantic
: Region VI. East South Central. _
: Region VII. West South Central.
: Region VIII. Rocky Mountain..
: Region IX. Pacific
RADIATION
Typical wholesale- and retail prices
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price indexes
Wholesale and retail price ndexes:
for selected cities, September 1939.
: Composite United States average.
: Region I. New England
: Region II. Middle Atlantic
: Region III. East North CentraL
: Region IV. West North Central.
: Region V. South Atlantic
: Region VI. East South Central..
: Region VII. West South Central.
: Region VIII. Rocky Mountain.,.
Region IX. Pacific
CHAPTER XX. RANGE BOILERS
Wholesale and retail price indexes: Composite United States average^
Wholesale and retail price indexes: Region I. New England
Wholesale and retail price indexes: Region II. Middle Atlantic
Wholesale and retail price indexes: Region III. East North Central.
Wholesale and retail price indexes: Region IV. West North Central.
Wholesale and retail price indexes: Region V. South Atlantic
Wholesale and retail price indexes: Region VI. East South Central. _
Wholesale and retail price indexes: Region VII. West South Central.
Wholesale and retail price indexes: Region VIII. Rocky Mountain..
CHAPTER XXL PLUMBING SUPPLIES
Geographical distribution of manufacture of plumbing supplies, 1937_
COMBINATION CLOSETS
Wholesale and retail price indexes: Composite United States average.
ENAMELED IRON LAVATORIES
Wholesale and retail price indexes: Composite United States average _
ENAMELED IRON SINKS
Wholesale and retail price indexes: Composite United States average _
ENAMELED IRON BATH TUBS
Wholesale and retail price indexes: Composite United States average _
Page
317
320
325
326
327
328
329
330
331
332
333
334
335
340
341
342
343
344
345
346
347
348
349
350
356
357
358
359
360
361
362
363
364
366
374
375
376
377
SCHEDULE OF TABLES, CHARTS, AND MAPS
XV
CHAPTER XXH. STRUCTURAL CLAY PRODUCTS
Table Page
235. Importance in industry of specified structural clay products 379
236. Geographical distribution of production, structural clay products,
1937 ....' 379
COMMON BRICK
237. Retail price indexes: Composite United States average 1 391
238. Retail price indexes: Region L New England 391
239. Retail price indexes : Region IL Middle Atlantic 392
240. Retail price indexes: Region IIL East North Central 392
241. Retail price indexes: Region IV. West North Central 393
242. Retail price indexes: Region V. South Atlantic 393
243. Retail price indexes: Region' VI. East South Central 394
244. Retail price indexes: Regipn VII. West South Central 394
245. Retail price indexes: Region VIII. Rocky Mountain 395
246. Retail price indexes: Region IX. Pacific 395
FACE BRICK
247. Retail price indexes : Composite United States average 396
248. Retail price indexes: Region I. New England. 396
249. Retail price indexes: Region II. Middle Atlantic 397
250. Retail price indexes: Region III. East North Central 397
251. Retail price indexes: Region IV. West North Central 398
252. Retail price indexes: Region V. South Atlantic 398
253. Retail price indexes: Region VI. East South Central . 399
254. Retail price indexes: Region VII. West South Central 399
255. Retail price indexes: Region VIII. Rocky Mountain 400
256. Retail price indexes: Region IX. Pacific 400
HOLLOW BUILDING TILE
257. Wholesale and retail price indexes: Composite United States average. 402
FLOOR TILE
258. Wholesale price indexes: Composite United States average 401
SEWER PIPE
259. Retail price indexes : Composite United States average 402
CHAPTER XXm. WINDOW GLASS
260. Production of window glass 403
261. Transportation costs in the shipment of window glass to selected cities,
September 1939 405
262. Wholesale price indexes: Composite United States average 407
CHAPTER XXIV. SAND, GRAVEL, AND CRUSHED STONE
CRUSHED STONE
263. Retail price indexes: Composite United States average 414
264. Retail price indexes: Region I. New England 416
265. Retail price indexes: Region II. Middle Atlantic 416
266. Retail price indexes: Region III. East North Central 417
267. Retail price indexes: Region IV. West North Central 417
268. Retail price indexes: Region V. South Atlantic 418
269. Retail price indexes: Region VI. East South Central 418
270. Retail price indexes : Region VII. West South Central 419
271. Retail price indexes: Region VIII. Rocky Mountain 419
272. Retail price indexes : Region IX. Pacific 420
XVI
SCHEDULE OF TABLES, CHARTS', AND MA[»S
GRAVEL
Tftble Page
273- Retail price indexes : Composite United States average 420
274. Retail price indexes : Region I. New England 421
275. Retail price indexes: Region IL Middle Atlantic 421
276. Retail price indexes: Region IIL East North Central 422
277. Retail price indexes: Region IV. West North Central 422
278. Retail price indexes: Region V. South Atlantic 423
279. Retail price indexes : Region VI. East South Central 423
280. Retail price indexes: Region VII. West South Central 424
281. Retail price indexes: Region VIII. Rocky Mountain 424
282. Retail price indexes: Region IX. Pacific 425
SAND
283. Retail price indexes : Composite United States average 425
284. Retail price indexes: Region I. New England 426
285. Retail price indexes : Region II. Middle Atlantic 426
286. Retail price indexes: Region III. East North Central 427
287. Retail price indexes: Region IV. West North Central. 427
288. Retail price indexes: Region V. South Atlantic . 428
289. Retail price indexes : Region VI. East South Central- 428
290. Retail price indexes: Region VII. West South Central 429
291. Retail price indexes: Region VIII. Rocky Mountain 429
292. Retail price indexes: Region IX. Pacific 430
CHAPTER XXV. READY-MIXED CONCRETE
293. Retail price indexes: Composite United States average 432
294. Retail price indexes : Region I. New England 434
295. Retail price indexes: Region II. Middle Atlantic 434
296. Retail price indexes: Region III. East North Central 435
297. Retail price indexes: Region IV. West North Central 435
298. Retail price indexes : Region V. South Atlantic 436
299. Retail price indexes: Region VI. East South Central 436
300. Retail price indexes: Region VII. West South Central 437
301. Retail price indexes: Region VIII. Rocky Mountain 437
302. Retail price indexes: Region IX. Pacific i 438
APPENDIX A. DIFFERENTIALS IN PRICES BETWEEN A
LARGE CITY AND ITS OUTLYING DISTRICTS
1. Retail prices of building materials in Cleveland and vicinity, October
1939 441
2. Prevailing wage rates for selected construction occupations in Cleve-
land, Ohio, and vicinity, 1938 442
APPENDIX B. MISCELLANEOUS TABULAR DATA
1. Cost of building the same standard house in representative cities in
June 1937 443
2. Dollar volume of residential building for which permits were issued
1937-1939, and weighting factors for 50 selected cities 444
3. Index numbers of wholesale prices at low and high points, 1935 to
September 1939 445
4. Index numbers of retail prices at low and high points, 1935 to Sep-
tember 1939 .- .---:.-.: 446
SCHEDULE OF TABLES5. CHARTS', AND MAPS
XVII
CHARTS
Charts Page
I. Insulation board: Wholesale and retail price indexes 33
II. Plaster: Wholesale and retail prices for selected cities, Septem-
ber 1939 50
III. Plaster: Wholesale and retail price indexes 53
IV. Asphalt strip shingle roofing: Wholesale and retail prices in
selected cities, September 1 939 72
V. Asphalt strip shingle roofing: Wholesale and retail price
indexes 75
VI. Cement: Wholesale and retail price indexes 93
VII. Hydrated lime: Wholesale and retail prices in selected cities,
September 1939 108
VIII. Hydrated lime: Wholesale and retail price indexes 110
IX. Outside house paint: Wholesale and retail price indexes 129
X. Inside house paint: Wholesale and retail price indexes. 141
XI. Interior enamel: Wholesale and retail price indexes 152
XII. Interior varnish: Wholesale and retail price indexes 163
XIII. White lead: Wholesale and retail price indexes 177
XIV. Linseed oil: Wholesale and retail price indexes 192
XV. Turpentine: Wholesale and retail price indexes 208
XVI. Douglas fir, dimension No. 1: Wholesale and retail price
indexes 223
XVII. Oak flooring: Typical wholesale and retail prices for selected
cities, September 1939 242
XVIII. Oak flooring: Wholesale and retail price indexes 243
XIX. Southern pine boards: Wholesale and retail price indexes 262
XX. Ponderosa pine boards: Wholesale and retail price indexes 273
XXI. Doors: Wholesale and retail price indexes 291
XXII. Windows: Wholes-ale and retail price indexes 307
XXIII. Heating boilers: Wholesale and retail prices in selected cities,
September 1939 322
XXIV. Heating boilers: Wholesale and retail price indexes 324
XXV. Radiation: Wholesale and retail prices in selected cities,
September 1939 337
XXVI. Radiation: Wholesale and retail price indexes 339
XXVII. Range boilers: Wholesale and retail price indexes 355
XXVIII. Combination closets: Wholesale and retail price indexes 372
XXIX. Enameled iron lavatories: Wholesale and retail price indexes.. 372
XXX. Enameled iron sinks: Wholesale and retail price indexes 373
XXXI. Enameled iron bathtubs: Wholesale and retail price indexes — 373
XXXII. Common brick: Retail price indexes 385
XXXIII. Face brick: Retail price indexe.'? 387
XXXIV. Building tile: Wholesale and retail prices 388
XXXV. Floor tile: Wholesale price indexes 389
XXXVI. Sewer pipe: Retail price indexes 300
XXXVII. Window glass: Wholesale price indexes 407
XXXVIII. Crushed stone: Retail price indexes -. 412
XXXIX. Gravel: Retail price indexes^ -__ 413
XL. Saiid: Retail price indexes 415
XLI. Ready-mixed concrete, 1-3-5: Retail price indexes 433
XVIII SCHEDULE OF TABLES, CHARTS, AND MAPS
MAPS
Maps Page
I. Important States in the production of asphalt roofing, 1937_. 67
II. Shipping points on sales of asphalt roofing to selected destina-
tions 73
III. Important States in the production of lime, 1937 106
IV. Important States in the production of paints and varnishes,
1937 124
V. Important States in the production of Douglas fir, 1937 220
VI. Important States in the production of oak lumber, 1937 236
VII. Important States in the production of yellow pine, 1937 258
VIII. Important States in the production of ponderosa pine, 1937. _ 270
IX. Important States in the production of white pine, 1937 282
X. Important States in the production of doors, 1937 286
XI. Important States in the production of window sash, 1937 304
XII. Important States in the production of heating and cooking
apparatus, 1937 318
XIII. Important States in the production of plumbers' supplies,
1937 367
XIV. Important States in the production of clay products other than
pottery 380
LETTER OF TRANSMITTAL
U. S. Department of Labor,
Bureau of Labor Statistics,
Washington, October 28, 1940.
Hon. Joseph C. O'Mahoney, Chairman,
Temporary National Economic Committee,
United States Senate, Washington, D. C.
My Dear Senator: I have the honor to submit for the record this
report on Geographical Differentials in Prices of Building Materials,
prepared by the Bureau of Labor Statistics for the Temporary
National Economic Committee.
The crucial importance of the construction industries in the Ameri-
can economy has long been recognized. In recent years the Federal
Government has placed great emphasis on the stimulation of home
building, as a means of providing better living arrangements for
our people, of increasing production of materials, and of reducing
unemployment. Since home building is essentially a local industry,
dominated by local situations, any programs designed to promote
building would clearly benefit from accurate information regarding
local building costs and a better imderstanding of the factors which
influence their behavior.
This report is designed to fill this need in some measure. It presents
for the first time a comprehensive body of statistics showing the
wholesale and retail prices of 37 materials important in residential con-
struction in 50 cities located in every State in the United States and in
the District of Columbia.
Detailed information regarding price structures and terms of sale —
cash and quantity discounts, zone systems, basing-point systems,
etc. — is also presented, so as to permit a better understanding of prices
actually paid by purchasers of these materials, delivered to their
localities, under different conditions.
These figures cover the entire period between January 1935 and
September 1939 and make it possible, therefore, to see how the prices of
building materials have been affected by major changes in the rate of
business activity, such as the upswing of 1936-37 and the subsequent
recession in 1937-38.
Since both wholesale and retail prices are shown, it has been pos-
sible to calculate distributive margins; to see whether the spread
between wholesale and retail prices is higher in certain cities and in
certain regions than in others, and to determine the effect of these
spreads upon the prices paid by buyers of building materials.
This study clearly shows that building material prices, both at
wholesale and at retail, vary widely not only between regions but also
between cities within a single region. A somewhat greater degree of
XX LETTER OF TRANSMITTAL
uniformity, particularly at wholesale, prevails for most commodities
which are distributed on a national scale, such as plumbing fixtures
and insulation board, than for those which are produced for purely
local markets, such as brick, sand, and gravel. At retail, however,
prices and price trends differ markedly between regions even for the
former group of materials.
It appears that, for most commodities, prices are highest in the
Rocky Mountain States, which are far removed from producing cen-
ters, and lowest in the industrial Middle Atlantic and East North
Central regions. This is true not only of prices but also of distributive
margins ; the spread between wholesale and retail prices is often widest,
not only in dollars and cents, but also relatively, in those areas where
wholesale prices themselves are highest.
FLaally, retail prices for most of these building materials are con-
siderably more rigid than wholesale prices. In a number of instances,
in fact, changes in wholesale prices were almost completely ignored in
some retail markets. Since retail prices represent what the con-
tractor must actually pay for materials, the implications of this
situation are significant.
In my opinion this monograph is worthy of the serious attention of
all those who are concerned with the many problems of the construc-
tion industry. It should prove particularly useful in connection with
the provision of adequate housing facilities for workers engaged in the
defense program.
This report was prepared by Walter G. Keim, assisted by Joseph W.
Lethco, Grace F. Grosvenor, and Philip H. Blaisdell, all members of
the T. N. E. C. staff of the Bureau of Labor Statistics, with the
editorial assistance of Saul Nelson, under the general supervision of
Aryness Joy, assistant to the Commissioner of Labor Statistics and
Director of T. N. E. C. studies for the Bureau. The Work Projects
Administration of New York City provided much of the clerical
assistance used in tabulating the data and computing the indexes.
Respectfully submitted.
ISADOR LUBIN,
Commissioner oj Statistics.
PREFACE
This study of building material prices, prepared hy the Bureau
of Labor Statistics for the Temporary National Economic Committee,
makes available for the first time detailed information regarding the
wholesale and retail prices of leading materials used in residential
building in every section of the United States. It is well known
that the costs of home construction vary widely in different localities
and that a considerable part of this variation is due to differences in
the prices which contractors must pay for the necessary inaterials:
A principal purpose of this study, therefore, is to provide a measure
of these differences, and to determine how much more materials cost
in one part of the country than another. Data have been assembled
for 37 materials which are of importance in residential construction,
in 50 cities, including at least one city in each of the 4'8 States and the
District of Columbia.
Some building materials, such as brick, sand, and gravel, are gen-
erally used within a narrow radius of their point of production; and
their costs of production and prices depend almost entirely upon local
conditions. Other products, including most materials wliich require
considerable fabrication, are manufactured and distributed on a
regional or national scale; they must be shipped long distances from
their points of production. In such cases, freight charges generally
form an important element in the cost of the delivered product.
However, it should not be assumed that delivered prices will neces-
sarily vary in proportion to the costs of shipment, since different
industries have adopted many different kinds of conventional prac-
tices with regard to the relation between shipping charges and deliv-
ered prices. In the case of some building materials, wholesale prices
are uniform throughout the Nation. For others, prices vary between
zones, and, in still others, basing-point systems or freight-equalization
systems are observed. The nature of the practice actually followed
in the case of each building material studied is described in detail in
this report.
Retail prices, that is, the prices paid by the typical local home
building contractor to the local material dealers, show even greater
regional variation than do wholesale prices, since they are even more
directly affected by local market conditions. In some localities the
spread between wholesale and retail prices is much wider than in
others; moreover, margins in the same locality may change consider-
ably from time to time.
This survey covers the period between January 1935 and September
1939 and includes the major upswing in prices which occurred during
1936 and 1937, as well as the subsequent recession during the latter
part of 1937 and 1938. WhOethe statistics presented in this volume
do not extend beyond September 1939, the Bureau of Labor Statistics
XXII PREFACE
has developed a system of current price reporting with the coopera-
tion of building material manufacturers and distributors, and it is
proposed to publish current data regarding these buUding material
prices in the future on the same basis on which they are presented
here.
Most of the statistical materials presented here were gathered by a
special field staff under the direction of Walter G. Keim, of the T. N.
E. C. staff, and Jesse M. Cutts, Chief of the Wholesale Price Division
of the Bureau of Labor Statistics. On the field staff were Elizabeth V.
Minson, John M. Linton, Warren F. Looney, Martin H. MUler,
Arthur W. Frazier, Bernard Topkis, Harold L. Dickinson, Joseph W.
Lethco, and Philip H. Blaisdell. This monograph was written by
Mr. Keim, assisted by Joseph W. Lethco, Grace F. Grosvenor, and
Philip Blaisdell, with the editorial assistance of Saul Nelson, under
the general supervision of Aryness Joy, assistant to the Commissioner
of Labor Statistics. Vivienne Winstead and Mary L, Kent assisted in
preparing the volume for publication.
The Work Projects Administration of New York City provided
much of the clerical assistance used in tabulating the data and com-
puting the indexes.
This survey would not have been possible had it not been for the
splendid cooperation of many members of the industry, both manu-
facturers and distributors.
CHAPTER I
INTRODUCTION
During recent years increasing public attention has been devoted
to the construction industry and particularly to residential housing,
not only because of the importance of this industry in terms of poten-
tial employment of men, unused manufacturing capacity, and idle
savings, but also because the housing industry exemplifies many of
the unsolved social and economic problems which have confronted the
United States during the past decade.
The construction industry is the largest single employer of labor
and far outdistances other industries in the consumption of materials.
Between 1919 and 1935, 15 percent of the products that were manu-
factured in the United States were consumed by this industry.^
In 1929 the construction industry proper — that is, exclusive of
producers of materials — employed about 5}'2 percent of the total gain-
fully employed nonagricultural workeis. By 1938 it was estimated
that this ratio had fallen to 4 percent.
According to Social Security Board estimates, approximately 97,000
contractors employed about 826,000 men in 1938.^ In 1935 the
Census of Business reported 73,186 lumber, building material, and
hardware dealers with aggregate sales of 1.9 bilhon dollars.^
The persons engaged directly and indirectly in the construction
industry constitute a cross section of the economic life of the Nation.
Producers of raw materials ; manufacturers of finished and semifinished
products; highly skilled, semiskilled, and unskilled laborers; financial
institutions; contractors; governmental agencies; social welfare work-
ers; politicians; labor organizers; trade association executives; and
even racketeers — all of these play their part in the building of a home,
street, bridge, or skyscraper.
Quantitative estimates of numoer of men, goods, and dollars em-
ployed, however, are only part of the story of the construction industry.
Failure of construction to regain the level of activity of the twenties
has been one of the main factors contributing to the unemployment
problem.
Between 1929 and 1937, the 2 peak years for general industrial
activity, excluding building materials, there was a net gain in manu-
facturing employment of roughly half a million workers. This
amounted to a 6.2 percent increase,* which was approximately the
same proportion as the rate of population growth during that period.
Although employment in the durable goods industries in 1937
generally equaled that of 1929, many building material industries
' Testimony of Isador Lubin, Temporary National Economic Committee Hearings, Part II, "Construc-
tion Industry," pp. 4942, 4943.
' Ibid., Exhibit 847, p. 5504.
« Ibid., Ejchibit 879, p. 5506.
« A. F. Hinrichs, Trends of Employment Opportunity, p. 19. Mimeographed release by Bureau of
Labor Statistics, February 22, 1940.
1
2 CONCENTRATION OF ECONOMIC POWER
failed to show a comparable degree of recovery. Thus employment
in the manufacture of water-heating apparatus recovered to only 90
percent of 1929, lumber-sawmill employment to 70 percent, lumber-
millwork to about 65 percent, cement to 75 percent.^ In other words,
employment in durable goods industries and in manufacturing gener-
ally was held back substantially by stagnant demand for construction
materials.
Furthermore, the housing industry has apparently failed to produce
homes within purchasing reach of its largest potential market. Forty-
eight percent of the homes built in 1938 were valued at $6,000 or more,
whereas only 15 percent of American families can afford so large a
housing investment. Only 48 percent of American famihes can afford
to buy or rent homes selling for $4,000 or less, whereas only 20 percent
of the homes built fall in that class.^
It has been said that the prerequisite to sound recovery in building
is the reduction of costs to the point v/here homes can be sold for $3,000
and less. There is considerable conflict of opinion as to whether such
a program is practicable. According to Robert L. Davison, of the
Pierce Foundation, "Ninety percent (of the building contractors) said
it couldn't be done and 10 percent said they were doing it and making
money." ^
The problem of cost reduction involves the question of material
prices. According to Dr. T. S. Kreps, in June 1937 the relative
importance of material costs as compared to labor costs in residential
building in 26 cities varied between a high ratio of 77-23 in Wichita,
Kans., to a low of 58-42 in Chicago, 111.*
In appraising the behavior of building material prices, it is important
to recognize the wide variations displayed by these prices from region
to region. Housing is in many ways a local industry; each housing
unit is a separate assembly point. The manufacture of building
materials is divided among national, regional, and local industries.
The ratio of freight charges to value of building materials at des-
tination varies from 4 percent for paints, oils, and varnishes to as
high as 57 percent for gravel and sand.'' High freight rates relative
to value mean wide distribution of plants when, as in many building
materials, raw material suitable for manufacture is abundant on a
wide geographical scale.
The distribution of plants engaged in the manufacture of materials
for building, the essential^ local nature of the housing industry, the
presence in almost all cities of large numbers of retail building ma-
terial merchants operating with varying degrees of cooperation, re-
quire a region-by-region, city-by-city, and sometimes district-by-
district study, if an adequate and realistic picture of price structures
is to be obtained.
Until recently there have been no satisfactory statistics regarding
these regional price differences. In the last few years the home loan
agencies have compiled data on costs of constructing a standard house
in various sections of the comitry to aid in evaulation purposes.
During the same period the Work Projects Administration and other
» Testimony of Isador Lubin, loc. cit., p. 4937.
» Ibid., Exhibit 846, p. 5479.
' Testimony of Robert L. Davison, Temporary National Economic Committee Hearings, Part II,
"Construction Industry," p. 4085.
« Ibid, p. 4988.
• Interstate Commerce Commission, Statement No. 3747, October 1937.
CONCENTRATION OF ECONOMIC POWER
agencies, wliich have been obliged to fix wage rates for construction
work, have studied wage rate levels.
A survey by the Federal Home Loan Bank Board revealed that a
standard house which cost $4,886 to construct in Columbia, S. C,
and $5,248 in Richmond, Va., would cost $7,260 in Chicago, 111., and
$7,134 in Great Falls, Mont. The table below shows the cities having
the highest and lowest costs for the standard house in June 1937.
Cities
Highest:
Chicago, III-
Great Falls, Mont..
St. Paul, Minn
Springfield, 111
White Plains, N. Y
Lowest:
Salisbury, N. C
Columbia, S. C
Ashville, N. C
Richmond, Va
Little Rock, Ark.._
Building
cost '
$7,260
7,134
6,911
6,980
6,857
4,746
4,886
4,968
5,248
5,285
Distribution of direct
costs '
Materials
Percent
57.7
70.1
Labor
Percent
42.3
29.9
' Source: Federal Home Loan Bank Board, Federal Home Loan Bank Review.
» Temporary National Economic Committee Hearings, Part 11, Construction Industry, Exhibit No.
942, p. 5571.
According to this survey, costs of the complete unit weie generally
highest in the northern cities and lowest in the southern area. The
north central cities had higher costs than the cities in the northeastern
area. However, the pattern is not uniform and this statement is
merely indicative of a general tendency. (See table 1, appendix B,
p. 443.) _
Material costs and labor costs in residential construction run in the
ratio of approximately 1)2 to 1. A change in either factor has a
major influence on the total cost of a house. Consequently, it is
important that adequate data concerning these major elements be
available in order to understand the factors governing geographical
differentials in building costs.
Studies of the Work Projects Administration show the wage rates
for the important occupations in the building trades.^" The regional
differentials for 5 trades are shown in the following summary. (The
regional break-down is that used by the census.") The averages were
based on the rates for 49 cities, 1 city, usually the largest, in each
State. A distinct geographical difference is noted. The wage rates
in regions II and III, including the large cities, New York, Philadel-
phia, Cleveland, Detroit, and Chicago, are generally higher than rates
in other parts of the country. The far West and the Rocky Mountain
regions were also in the higher bracket. The lowest rates are to be
found in the southern areas.
"> Work Projects Administration, Hourly Wage Rates for W. P. A. and for Private and Other Public
Construction, 1038, Solcclcd Opcupatinns. Washington, I). C, July 1939. This bulletin contains informa-
tion bringing u|) to l'.(:?s, data originally collected «tnd published in the study. Wage Rates and Hours of
Labor in the liuildina Trades, prepared in 19:W under the direction of Herman B. Byers, Chief of the
l);.isi()n of Construclinn and rnhlic Kniiiloynient. Bureau of Labor Statistics.
" The cen.sus pummarizes its data under the 9 following geographical divisions: New England, Middle
Atlantic, East North Central, West North Central, South Atlantic, East South Central, West South
Central, Mount^n, Pacific.
CONCENTRATION OF ECONOMIC POWER
Region
Brick-
layers
Carpenters
Painters
Plasterers
Plumbers
I. New England
$1. 375
1.680
1.676
1.410
1.444
1.533
1.400
1.486
1. 450
$1. 035
1.460
1.342
1.126
1.116
1.128
1.076
1.228
1.160
$0. 950
1.253
1.320
1.093
1.026
1.028
.952
1.145
1.150
$1,403
1.687
1.568
1.404
1.362
1.453
1.400
1.563
1.533
$1,300
II. Middle Atlantic
1.647
Ill East North Central
1.510
IV West North Central -.
1.274
1.273
VI East South Central
1.378
VII. West South Central
1.250
VIII. Rocky Mountain .-
1.360
IX. Pacific
1.417
United States
1.484
1.186
1.102
1.486
1.379
Part of the sizable regional differences in building costs can be traced
to these geographical variations in wage rates. Variations in taxes,
insurance, and other incidental costs result in further differentials.
One of the most important factors in -the regional differences is
material costs. The present study is directed to defining and analyz-
ing these differences in the delivered prices of building materials which
are commonly used in residential construction.
SCOPE OF THE STUDY
The Bureau of Labor Statistics has for many years collected and
published wholesale prices of building materials. These prices are for
the most part quotations at base point or plant. Therefore, while
they are readily adaptable to the purpose of constructing general
indexes, they do not reveal the levels or trends of prices paid by
distributors in different localities. The primary object of thij study
is to assemble statistics on prices for sales to distributors, delivered to
yard, and to consumers, delivered to job site. To obtain adequate
geographical coverage one important city was selected in each State,
except Texas where, because of its size, two cities were chosen. In
all but a few cases these cities were the largest in their respective
States.
LIST OF CITIES INCLUDED IN THE BT7ILDING MATERIAL SURVEY
Region I. New England
A. Portland, Maine.
B. Manchester, N. H.
C. Burlington, Vt.
D. Boston, Mass.
E. Providence, R. I.
F. Hartford, Conn.
Region II. Middle Atlantic
A. New York, N. Y.
B. Trenton, N. J.
C. Philadelphia, Pa.
Region III. East North Central
A. Cleveland, Ohio.
B. Detroit, Mich.
C. Indianapolis, Ind.
D. Chicago, 111.
E. Milwaukee, Wis.
Region IV. West North Central
A. Minneapolis, Minn.
B. Fargo, N. Dak.
C. Sioux Falls, S. Dak.
D. Des Moines, Iowa.
E. Omaha, Nebr.
F. Wichita, Kans.
G. St. Louis, Mo.
Region V. South Atlantic
A. Wilmington, Del.
B. Baltimore, Md.
C. Washington, D. C.
D. Charleston, W. Va.
E. Richmond, Va.
F. Charlotte, N. C.
G. Charleston, S. C.
H. Atlanta, Ga.
I. Miami, Fla.
CONCENTRATION OF ECONOMIC POWER
LIST OF CITIES INCLUDED IN THE BUILDING MATERIAL SURVEY — Continued
Region VI. East South Central
A. Louisville, Ky.
B. Memphis, Tenn.
C. Birmingham, Ala,
D. Jackson, Miss.
Region VII. West South Central
A. Little Rock, Ark.
B. Oklahoma City, Okla.
C. Austin, Tex.
D. Houston, Tex.
E. New Orleans, La.
Region VIII. Rocky Mountain
A. Butte, Mont.
B. Boise, Idaho.
C. Cheyenne, Wyo.
D. Denver, Colo.
E. Salt Lake City, Utah.
F. Reno, Nev.
G. Phoenix, Ariz.
H. Albuquerque, N. Mex.
Region IX. Pacific
A. Seattle, Wash.
B. Portland, Oreg.
C. Los Angeles. Calif.
None of the industries included in the study actually relate their
price structures to the census regions. Among the important factors
which shape the price structures are the location of the production
center, the source of raw material, and principal sales areas. The
pattern of price variations is not uniform. It was decided, therefore,
to use the census regions in this study of buUduig material price dif-
ferentials, in order to provide a common basis for summarizing the
price data for the various products.
MATERIALS CONSIDERED
Since this study is primarily concerned with the prices of materials
important in residential construction, the specifications were limited
to the lighter building materials. Steel construction, heavy piling,
and the like, which are important in heavy construction, were not
included.
In selecting the construction materials for which prices were to be
collected, a sample survey of certain cities which revealed the distri-
bution of expenditures for a standard residence in 1937 was utilized. ^^
The proportion of total cost going to the various products, as indicated
by that survey, is shown below:
Range of proportion for selected cities
Item
High
Low
City
Per-
cent
City
Per-
cent
Lumber
St. Paul, Minn
Houston, Tex
Portland, Oreg
Spokane, Wash
fHouston, Tex
\Los Angeles, Calif
Houston, Tex
Detroit, Mich._
55.4
22.3
15.2
10.1
)"
3.1
7.7
Houston, Tex._ _
MiWaukee, Wis
New Orleans, La...
Pittsburgh, Pa
41 4
Mason materials
12 3
Plumbing
10.4
Boilers, radiators, and fittings
6.2
Hardware, miscellaneous .
2 3
Painters' materials
Milwaukee, Wis _
New Orleans, La
2 1
Miscellaneous items
4.3
After determining the materials to be studied, specifications were
drawn for representative products, terms, and conditions of sale. In
general, the particular grade of each material chosen for pricing was
the one which constituted a large proportion of the total value of that
» Compiled by Dr. T. J. Kreps from files of Home Owners' Loan Corporation.
Q CONCENTRATION OF ECONOMIC POWER
industry's output. Most of the products are used in residential con-
struction throughout the United States. In some cases, however,
the products selected have only limited use in certain areas, and it
was necessary to substitute other items in these regions. For example,
southern pine lumber and miUwork are not handled to any extent in
the Pacific and Rocky Mountain areas where Ponderosa and northern
pine are readily available, while the latter products are not used in
the South.
Specifications of each commodity were drawn for both retail and
wholesale pricing. Retail prices were defined as those paid by con-
tractors to the distributors for materials delivered to the job site.
Wholesale prices refer to those paid by distributors to the producers
or manufacturers for materials delivered to the freight yards of the
city. The specifications include physical features of the product, the
unit of sale, the quantity (generally carlots at wholesale), the point
of delivery, and other relevant terms and conditions of the transaction.
The 37 commodities-selected for survey are shown below. Complete
details of the specifications are presented in Appendix C.
LIST OF PRODUCTS
Insulation board. Windows, Ponderosa pine.
Plaster. Boiler, heating.
Asphalt roofing. Radiation.
Cement. Boiler, range.
Lime. Closet.
Paint : Lavatory.
Outside. Sink.
Inside. Bathtub.
Enamel. Brick:
Varnish. Common.
White lead. Face.
Linseed oil. Sand and gravel.
Turpentine. Stone, crushed.
Southern pine boards. Tile:
Ponderosa pine boards. Floor.
Northern pine boards. Building.
Oak flooring. Sewer pipe.
Fir dimension. Concrete, mixed 1-2-4.
Doors: Glass, window.
Fir
Ponderosa pine.
METHODS OF COLLECTION
The program was organized to collect wholesale and retail prices
for each of the 37 materials in 50 cities. It was intended originally
to obtain both wholesale and retail prices for each item, but this was
not possible in each case. Products which are produced and marketed
locally are generally sold direct to consumer — in this case, the con-
tractor. Brick, sand and gravel, crushed stone, and ready-mixed
concrete fall in this category. For one other item, floor tile, prices
quoted by manufacturers to contractoPi were obtained, inasmuch as
the direct sale is the most popular channel of distribution in most
cities.
Most brick companies, although they distribute their own products,
have arrangements with various other local dealers and multi-line dis-
tributors, and pay a commission of $1 per 1,000 on sales made through
these outlets. These commission agents negotiate the sales but de-
liveries to customers are handled by the producers. Actually, how-
CONCENTRATION OF ECONOMIC POWER 7
ever, the retail price is that charged by the producers whether it be
on goods sold direct to consumers or through commission agents. No
wholesale price, as defined in this study, could be quoted on such
transactions.
Obviously, retail prices, distributor to contractor, could be obtained
from dealers in each city, but collecting the wholesale prices required
a different procedure. In most instances, the manufacturers of the
materials were not located in the cities covered by the survey. How-
ever, many producers whose distribution is Nation-wide were able to
furnish trends or prices which they charge their middlemen in each
city. This, of course, facilitated the collection of data for a call at
the office of a producer whose products are distributed on a Nation-
wide basis generally made available wholesale prices in the 50 localities
included in the study. The survey was not limited to these large
firms. Efforts were made to obtain from representative manufac-
turers the prices of products popular in each area. Consequently in
nearly every city, three or more wholesale prices were obtained, some
from local producers and some from national distributors.
The field representative attempted to obtain a complete monthly
series of prices from 1935 to date from each seller for each product.
During the interview, arrangements were made for the respondent to
furnish monthly reports to the Bureau. In addition to the price data,
the seller frequently volunteered much valuable information regarding
methods of distribution and other elements of the price structure.
DESCRIPTION OF THE INFORMATION
The retail prices represent quotations made by the distributors to
contractors, for material delivered to job site, in average quantities,
for residential construction. These data were obtained from various
types of distributors. Retail lumber yards were usually valuable
sources of information. The typical yard carries many products in
addition to lumber and mUlwork, including, for example, insulation
board, lime, plaster, and cement. Most of the materials are sold at
retail through independent distributors, but for a few products the
manufacturers' own retail stores are a popular outlet. Paints, espe-
cially in the large cities, are often sold through producer-owned dis-
tributors; more generally, however, the distributing firm is privately
owned by contracts to handle the product of one manufacturer exclu-
sively. The reporting business firm was asked to give the complete
history of monthly prices from 1935 to date, but records were fre-
quently inadequate for this purpose. Therefore, many of the series
show -only current price levels and price data over a relatively short
period. The Bureau's agents sometimes found it necessary to visit
many sellers before they were able to get complete information.
Consequently, more data are available for the current period and the
immediate past than for the earlier years.
When the distributor did not sell the item specified but handled a
similar product, the agent was instructed to substitute the price of
such an item but to mark it as suitable for "trend only." The differ-
ence in specification, of course, precluded its use in computing the
actual price level.
As stated earlier, retail quotations sought were on materials delivered
to the job site. This element represents a considerable increment to
g CONCENTRATION OF ECONOMIC POWER
the final price even within the city, and it was necessary to ask for
delivery at prices to the current most popular home building locality
in each city in order to maintain comparability of transportation
charges between dealers. The distributor usually divides the metro-
politan area into zones. At least one of these is a free zone, within
which all materials are delivered without any specific charge for trans-
portation. Delivery charges are established in other zones according
to distance from sellers' yards.
In the wholesale market, in most cases, the price to distributors is
for delivery at destination point, distributor's siding if available. If
the distributor has no siding he collects the material at the railroad
yards. For some products, however, such as lumber (including
southern pine and Ponderosa pine boards, fir dimension, and oak floor-
ing), prices are quoted f. o. b. mill or basmg point. In these cases, the
mill or base prices are reported. The destination prices are then de-
rived by adding rail or water freight from the shipping or basing point
to the locality in question. For some materials, such as paint, prices
to some of the cities were quoted directly, while prices in others had
to be computed by adding freight.
The quantity purchased is, almost without exception, an important
factor in determining the price quoted by any seller, whether at whole-
sale or retail. Producers selling at the wholesale level to distributors
and to large users generally use a complex system of quantity dis-
coimts. Most of the materials are quoted in carlots, which constitute
by far the greater portion of wholesale transactions. But in the case
of products for which quantity discounts are granted on less than car-
lot shipments, as in the paint industry, for example, the specification
used relates, as nearly as possible, to a typical quantity.
Although the size of purchase is not as important a factor in retail
prices as it is in wholesale prices, quantity discounts are available from
retailers to contractors as well as from manufacturers to distributors.
However, the practice is not uniform in the retail market, depending
on competitive conditions and the type of buyer and seller. Although
the retail lumber yard does not operate on the basis of a detailed
system of quantity discounts, the largest contractors in an area often
receive some price concessions because of the size of their purchases.
These concessions are commonly based on total value of all purchases
rather than on the amount of any particular item bought. Most lum-
ber yard dealers report that allowances to contractors vary widely and
are subject to many considerations, including credit rating, paying
ability, size of purchase, prospect of future business, and willingness
to concentrate orders rather than to distribute them among various
dealers. Retail prices on exceptionally large or small orders are very
difiicult to obtain and, moreover, are not representative of price
movements on the bulk of goods sold. A representative price is
obtained by taking the going price for "average" quantities, or prices
to the "average" size contractor engaged in residential building, and
this was the quotation for which the agent asked. The specifications
used for retail pricing call for the standard units generally quoted in
the industry; e. g., per thousand board feet of lumber, per gallon of
paint, etc.
CONCENTRATION OF ROONOMIC POWER 9
PREPARATION OF SUMMARY DATA
In siuninarizing these data, the first step was to assign a code
number to each region, city, and respondent or reporter.
All the information from the various schedules was tabulated to
show the available prices from 1935 to 1939 for aU the companies.
Where the prices were obtained for off-specification items, they were
tabulated on a separate sheet marked "trend only." Upon comple-
tion of the initial recording, a "representative" price series was selected
for each item and city, thus presenting an actual price, rather than an
arithmetic average. (This was the crucial stage of the processing work
for it was here that the going level of price was determined.) For
most materials, there was a range of prices within each city. The
question arose, therefore, as to whether an arithmetic average of the
price quotations obtained in a city should be used in determining the
prevailing level of prices in that area. The primary factor to be con-
sidered in selecting a representative price for paint, for example, was
the comparability of the series from city to city. Obviously an aver-
age of prices for one city would not necessarily include the same
components as the average in another city. Moreover, averages have
a degree of unreality since sales are rarely made at these levels and
occasionally nominal quotations pull an average out of line. It was
decided, therefore, to select as the going price the series furnished by
a dealer who was a representative seller '^ of the commodity in the
particular locality. The index numbers and other compilations used
in this study have been based on these representative series. If, later
on, another dealer's price becomes more representative, it will be
necessary to make an adjustment in the index.
The primary purpose of the study is to show how delivered prices
varied throughout the country in wholesale and retaU markets.
Another important phase of the study is to present the trends of
prices for the period 1935 to September 1939 for each item. The
variations in trends of wholesale and retail prices reflect the retailers'
spread.
Weighted indexes for each building material were computed both
for wholesale and retail for the several regions and for the United
States. For this purpose, weighting factors for each city were based
on the total dollar volume of new residential buUding for which permits
were issued during the period 1937-39.^* (For complete data see
table 2, appendix B.)^^ A single exception was made in computing
the wholesale indexes for Portland cement. In this case, the index
of the WTiolesale Price Division of the Bureau of Labor Statistics was
broken dowTi by regions corresponding to those used in the survey
and the index was converted from a 1926=100.0 base to July-Sep-
tember 1939=100.0. This necessitated the use of some cities not
" The Bureau's agent attempted to obtain prices from established sellers in the community, concerns
which had been in business for a long period, carried stocks of the material being priced were important
factors in the sales for the locality, and whose prices were average or represented the prevailing level. The
concern which twst answered these qualifications was considered to be "representative."
'* That is, the weighting factor for each city is the ratio of the volume of building permits for that city to
the total volume for all cities included.
"Based on data collected by the Division of Construction and Public Employment, U. S. Bureau of
Labor Statistics.
10 CONCENTRATION OF ECONOMIC POWER
covered by this survey in addition to many of the survey cities.
(For a complete list of the cities used see footnote 9, p. 92.) However,
the retail price data for cement were weighted in the same way as the
other products covered.
The following chapter presents the results of this study for all the
products indicating the salient points of market conformity and varia-
tion. This is followed by a series of chapters dealing with individual
products or groups of products in detail, describing both general
market characteristics and price trends.
CHAPTER II
SUMMARY AND CONCLUSIONS
This study of prices of building materials reveals a very wide di-
versity of marketing practices, price behavior, and price relationships,
not only between different kinds of building materials in national
markets but for the same material in different regions and even in
neighboring locsflities. Nevertheless, certain broad tendencies are
evident. It is the purpose of the present chapter to present these
tendencies and to describe, in summary, the way in which the leading
building materials are marketed.
The location of the producing industries is first discussed, together
with the degree to which the production of certain materials is con-
centrated in the hands of a few leading concerns. The details of the
price structure are next compared, with emphasis upon the type of
geographical price system, zone, basing point, etc., observed in each
case. Actual prices are then summarized to show the extent of the
geographical differences, both at wholesale and retail, price trends for
vhe period covered by the survey, and the margins between wholesale
and retail prices for different commodities in different localities.
AREAS OF PRODUCTION
Numerous industries, operating under many different price and
market structures and in many different parts of the country, furnish
the basic materials for building construction. For example, a home in
Wasliington, D. C, probably contains Douglas fir doors and Ponderosa
pine windows, window frames, and other trim work from the far North-
west and the Midwest; fir dimension timbers from the Northwest or
heavy pine from the South; oak flooring from the South; heating
boilers, radiation, paint, insulation board, and roofing from Minne-
sota, New York, or New Jersey; plumbing supplies from Wisconsin,
Illinois, or Ohio; window glass from West Virginia and Pennsylvania;
lime from Pennsylvania and West Virginia; and cement, brick, sand,
gravel, and crushed stone from nearby sources.
Naturally, certain lumbers and other materials are produced sec-
tionally and encounter the competition of substitutes only to a limited
extent. Y'ellow. pine, for example, is produced and sold almost exclu-
sively in the South. Red cedar shingles is the popular form of roofing
in the northwestern States which, of course, limits the sale of prepared
shingles in that area. Douglas fir and Ponderosa pine dominate lum-
ber sales in the North.
Nevertheless, all these products are used to varying degrees outside
the regions where they are produced. Southern pine is sold all over
the east and as far north and west as Chicago. Ponderosa pine mill-
work and certain types of fir materials, although produced in one part
of the country, have almost Nation-wide use. Hence, even for so-
il
. 27.5852 — 41— No. 33 3
12
CONOENTRATION OF ECONOMIC POWER
called sectional materials, sales may be made over wide areas and
transportation becomes a considerable factor in the delivered price.
Although other manufacturers of building materials are not as de-
pendent upon a single source of basic raw materials as are the lumber
producers, nevertheless, there is a tendency for the manufacture of
each material to center in a single region. Availability of raw mate-
rials, labor, and transportation facilities, as well as nearness to centers
of demand, are always important factors in the consideration of plant
location. For some commodities, the fact that a leading producer
happens to be located within the borders of a certain State may result
in a high degree of geographical concentration. The relative concen-
tration of production for the various material producing industries is
shown in the following summary, which does not, hoAvever, include
the widely decentralized industries such as sand, gravel, and stone.
Material
Number of
producing
States
Center of production
Percent of
total out-
put in cen-
ter of pro-
duction I
Insulation materials, including board
Plaster
Asphalt roofing .
23
25
26
35
38
41
10
8
19
12
26
37
10
48
48
46
13
48
Minnesota, Indiana, Illinois
New York, Michigan, Iowa, Texas
Illinois, Ohio, Pennsylvania, New York,
Minnesota.
Pennsylvania, California, Texas, Michigan
Ohio, Pennsylvania, Missouri
New Jersey, Illinois, New York, Ohio
Minnesota, New York, New Jersey, Cali-
fornia, Pennsylvania.
Georgia, Florida, Alabama
Alabama, Texas, North Carolina, Missis-
sippi, Arkansas, Louisiana.
Oregon, California, Washington
New Hampshire, Maine, Minnesota,
Washington, Idaho.
Louisiana, Tennessee, Arkansas, Missis-
sippi, West Virginia, Virginia, North
Carolina, Kentucky.
Washington, Oregon . . _
Iowa, Wisconsin, Illinois, Washington,
Oregon, California.
Iowa, Cali/ornia, Wisconsin, Illinois,
Washington.
Illinois, Pennsylvania, Ohio, California,
New York.
Wisconsin, Pennsylvania, Ohio, Illinois,
Michigan, California.
Ohio, Missouri, California, Pennsylvania.
West Virginia, Pennsylvania.-
36
55
Cement
41
Lime . -
50.4
Paints -- - --
54
(')
Turpentine _
93
Southern yellow pine ._
69
Ponderosa pine
79
White pine -- -..
82
Oak lumber
68
Douglas fir - - -
95
Doors - - -
68
Windows -
57
Boilers, heating and radiation
Plumbing fixtures .
52
60
Structural clav products
50
68
• Based on data in the Census of Manufactures and Minerals Yearbook for value of product in 1937 and
1938.
» Data for Louisiana not included, to avoid disclosure of product of individual company.
» No data available.
CONCENTRATION OF PRODUCTION
In many of the industries covered in this study, a large proportion
of the total output is in the hands of a few leading concerns. This
means, of course, that these companies distribute on a national scale,
commonly under identifying brands or trade-marks, and often with
the aid of extensive advertising. In fact, the following summary
shows that with the exception of the lumber industries and the purely
local industries, such as brick and tile, control of the production of
most building materials is enjoyed by a relatively small number of
large concerns.
CONCENTRATION OF ECONOMIC POWER I3
Material and percent of total manufactured by 4 leading companiea, 1937
Material
Manufac-
tUHMl by 4
leading com-
panies, ]i«7
(percent < '
total outpiii;
Material
Manufac-
tured by 4
leading com-
panies, 1937
(percent of
total output)
82
85
42
1 29
55
61
42
33
f9
29
9i
87
7
16
Oak flooring
'30-35
Plaster
Douglas flr
23
Asphalt roofing
Closets
61
Cement . ■-
Lavatories
69
Boilers, heating
Sinks - ..
64
Radiation _.
Bathtubs.- _.
73
Boilers, range
Brick:
Face
Common
TUe:
Floor
Building
Sewer pipe.. ._. ._. _. ...
Paints, various .. . . .
16
Knanip]
7
Varnishes
White lead
63
Zinc oxide .. - -
25
Yellow pine --- .
37
Ponderosa pine ..
Glass, window
85
' structure of the American Economy, National Resources Committee, p. 256.
' Reported by the industry.
Source: U. S. Department of Commerce.
The data presented in this table do not tell the whole story in
all cases. In industries producing for narrow local markets, the
degree of local concentration, not national concentration, is sig-
nificant. Thus, while only 7 percent of the total production of com-
mon brick in the United States is in the hands of the 4 largest pro-
ducers, there are many localities in which the entire output is produced
by one or two companies. The high cost of shipping such heavy prod-
ucts as brick over considerable distances effectively protects these
locaUties from outside competition.
MARKET STRUCTURE ^
Geographical Pricing Practices.
Completely uniform maiket practices prevail in very few industries
and individual producers may alter their policies from time to time
and observe different practices in different sections. Almost without
' These analyses of market structures— pricing methods, discount practices and the like — are based on
information obtained from interviews With most of the important producers in each industry included in
the study. In the following pages an altempt has been made to summarize the practices most prevalent
in each industry as a whole. It is not tc be inferred, however, that the prattices described here necessarily
apply to all producers in any one industry. Thus, most building-material manufacturers follow difTeren t
practices on the west coast than east of ihe Rocky Mountains. However, within these geographical limits
marketing practices have a strong tendency towarci uniformity for a number of the materials considered in
this study which arc produced by a relatively small number of firms.
In the followin? industries, a sufficient number of interviews were conducted with important producers
and trade-association executives to lend to the conclusion that market patterns arc fairly uniform east of the
Rocky Mountains; insulation board, asphalt roofing, cement, white lead, turpentine, linseed oil, plumbing
supplies, heating equipment, and winilow glass. In the plaster industry, consultation with leading manu-
facturers indicates that a freight-equal.zation system was generally used in that industry, but the study was
not sufficiently detailed to di'terniine whether this amounted to a basing-point system in some sections of
the country. In the rea iy-iui.xed paint industry the general pattern of pricing is similar for all large com -
panics, but detailed discount provisions and zoning arrangements often vary, and small- and medium-sized
paint man!:f:;i,turcrs follow a variety of practices. In the lime and range-boiler industries, the information
obtained ajipears to indicate that wlieio pricing practices are formalized the lines are drawn on a regional or
sectional rather than Xation-wide basis.
Structural clay product manufacturers and aggregate material jiroducers were interviewed in most of the
50 cities visited. It appears that, although the producers are widely scattered geographically, general
pricing practices follow a fairly uniform regional and Nation-wide pattern, although differences occur in
some cities at times.
In the lumber and Tiillwork industry information at hand is less comprehensive than for most of the other
products studied. 1 e number of manufacturers in this industry is so large that it was impossible to obtain
information from more than a very limited proportion of the producers and, while certain broad generaliza-
tions have been drawn in the fallowing discussion, they are offered as a general description and should be
used with considerable reservation.
In each case the market structures described are those prevailing during September 1939 and do not re-
flect any changes which may have occurred subsequently.
14 CONCENTRATION OF ECONOMIC POWER
exception, however, the producers of building materials quote delivered
prices, either as a systematic practice designed at least partly to assure
uniformity as between sellers, or merely as a convenient manner of
quota;tion.
With regard to the form of quotation, there are two different prac-
tices. In some cases, the seller quotes the delivered price including
freight, prepays the freight, and the buyer remits the total delivered
price to the seller. In other cases the buyer pays the freight on receipt
of shipment, subtracts it from the invoice total and remits the balance.
Prepayment of freight is a convenience to the buyer and is often con-
sidered a subtle form of allowance, inasmuch as dealings between him
and the transportation agency are eliminated, and he has the use of
the actual sum of money involved for an additional period between
receipt of shipment and payment to the seller.
However, these comments refer merely to the form of quotation,
and do not affect the more important matter of the wa}'^ in which
delivered prices of these materials actually vary from city to city in
relation to the location of the producing plant. In general, there is
a marked tendency in all of the industries operating beyond a local
market for producers to adopt methods designed to equalize prices
with those of their nearest competitor in each locality. The actual
practices vary widely between industries, depending upon such factors
as the nature and intensity of competi.tion, the relative importance of
freight costs in relation to the price of the product, the customs which
have developed during the growth of tlie industry, etc. In some cases
the producer may meet competition in areas remote from his plant
simply by reducing his own net returns by an amount £,ufRcient to
"equalize" delivered prices with those of the most favorably located
competing plant. In other industries, more formal or more complex
schemes for arriving at equality of delivered prices have been
developed.^
The more common types of geographical price structure used in the
building material industries are —
(a) One-price f. o. b. plant system.
(6) F. o. b. plant system, with unsystematic variations to meet
peculiar local competitive conditions.
(c) Multiple mill base or freight equalization system.
(d) Multiple basing-point system.
(e) Multi-zone system, with uniform delivered prices throughout
each zone.
(J) Uniform delivered prices to all destinations.
(a) The "one price" f. o. b. plant system occurs when a producer's-
net realization ac the plant is the same from all buyers of a particular
class regardless of the destination of the shipment. This plan is
seldom adhered to rigidly by any of the producers of building materials.
Producers of turpentine generally follow this practice, since they are
all located in the same freight zone, but a few producers outside the
Savannah zone nevertheless use Savannah as a base, departing from
the uniform net realization system. The formal and first asking price
of many of the basic lumber items is usualty f. o. b. plant, plus freight,
but cuts are frequently made, according to reports, to "meet competi-
' This entire problem of geographical price structures throughout industry is described in detail in Mono-
graph I, Price Behavior and Business Policy— Part n, prepared by the Bureau of Labor Statistics for the
use of the Temporary National Economic Committee.
CONCENTRATION OF ECONOMIC POWER ]^5
tion" or "to get the business." Freight rates as approved by the
Interstate Commerce Commission generally vary widely on short
hauls, hence there is considerable variation in delivered prices at
destinations near the source of supply.^ On long hauls, however,
"blanket" rates apply to many destinations in the same general area.
For example, on shipments of Douglas fir dimension lumber from
Portland, Oreg., a rate of 82 cents per 100 pounds applies to a group
of 16 States bounded by Michigan, West Virginia, Washington, D. C,
and Maine. Consequently the same freight increment is added to
the price at Portland, Oreg., and a uniform delivered price prevails
in the whole eastern area described above. The blanket freight rates
apply whether freight is dehvered by water or rail. Water rates are
the same from any port on the Pacific Coast to any port on the eastern
seaboard.
(6) In the sale of some building materials, for example, lime in
certain areas and some types of lumber, there are unsystematic price
variations in which the prices in particular markets bear no direct
relation to shipping costs. In these cases, destination prices are quoted
to meet a peculiar competitive situation, created either by a rival
seller of the same product or by the producer of a competitive product.
(c) The producers of window glass and plaster adhere strictly to a
systematic method of freight equalization. According to reports,
producers equalize freight and plant prices to arrive at a uniform
delivered price at each destination. It is interesting to note that full
equalization is most successful in those industries which have rela-
tively few producers (for example, window glass and plaster), while
only hmited equalization occurs in industries wliich have a larger
number of producers. Lime, sewer pipe, roofing, heating boilers, and
radiation have equalization systems which are widely observed, but
many sellers limit their freight allowances to certain destinations. In
distributing heating boilers, for example, the manufacturer limits the
allowance of freight charges to 30 cents per 100 pounds at certain
destinations while equalizing fulh^ at others. Prices of certain types
of floor tile are quoted f. o. b. plant with freight equahzed with com-
peting plants on carlot orders. On other types, only limited equaliza-
tion is practiced.
(d) Several of the building nuiterial industries use the multiple
basing-point method in distributing theu* products. Under this
method delivered prices in different localities vary in accordance with
shipping costs from one or more "basing points" recognized by the
industry. These points usually represent important producing
centers, but there are some plants which are not located at any basing
point. In the distribution of cement, numerous leasing points are
emplo^'cd, most of which arc producing points. There are, however,
some plant locatioji'^ which are not at, or immediately adjacent to,
basing points.
For oak flooring, only three basing points are used in computing
delivered prices: Johnson City and Alemphis, Tenn., and Alexandria,
La. The delivered pjice to any destination is the lowest sum of the
price ut an}* basing point, plus freight from such basing point to
• lojiinatiun. This delivered price is rounded to the nearest 50 cents.
' Althoush there is a variation in .4iort-lru(l freight rntcs which, if us<id, would cause a considerable varia-
tion to bu>\ rs in produein? areas, tliu use of triii.k hauls has a tendency to reduce these variations.
IQ CONCENTRATION OF ECONOMIC POWER
Freight rates are published from each basing point to all destinations
in order to insure uniformity of calculation.
In the lime industry, the basing-point system is followed in a few
sections of the country, but in general the freight equahzation sj^stem
is used. The wide geographical distribution of small companies and
plants in tliis industry makes difficult the maintenance of a consistent
Nation-wide pattern.
During the operation of the N. R. A. code, southern yellow pine
was for a time sold under a basing-point structure with several im-
portant producing localities as bases. However, this system has not
been effective in recent years as delivered prices are computed f. o. b.
plant, plus freight, equahzed to meet competition.
{e) The zone price structure is, perhaps, the most common system
encountered in the building industries. This means that delivered
prices are uniform throughout a defined geographical area. In sales of
certain products, the zone pattern supplements some other system,
such as freight equahzation. Large producers in the asphalt roofing
industry, for example, utilize a regional method of quoting list prices,
probably determined by the location of plants. Insulation board is
another example of the same plan.
The zone system is also used in determining the delivered prices of
paint. The common practice is for large manufacturers to divide the
country into zones and to quote delivered prices, full freight allowed,
to every "jobbing center" in each zone. (Jobbing centers are ware-
housing points for any member of the industry.) Delivery is made
without charge to any points in these cities and in the immediately
surrounding areas. When sales are made in a locality not classed as a
jobbing center, shipment is made from the warehouse which is nearest,
freight-wise, and the buyer pays the freight costs. The zones are not
the same for all firms, but the pattern is fairly uniform. The base zone
for paint usually includes the States in the Middle Atlantic and East
North Central areas. The second zone includes the States around the
edge of the base'zone, and, in some cases, all the South Atlantic and the
New England States. The third zone includes the remamder of the
South and Southwest areas and some of the West North Central
States. Zone 4 is usually the Rocky Mountain States. The Pacific
States are considered a base or first zone by several large manufacturers
who have production facilities in that area. Other manufacturers
classify the Pacific States in the second or third zones.
The difference in base prices between zones is usually 5 to 7 cents
per gallon. That is, zone 2 is 5 cents above zone 1; zone 3, 10 cents
above; zone 4, 15 cents above, etc. The zone differential between the
warehouse prices varies with the different producers and occasionally
varies between the different liquid paint products of a single concern.
Manufacturers of doors divide the country into zones for pricing
purposes. Wholesale prices of doors are quoted as discounts from a
standard list useid b"*^ all manufacturers. These discounts range up to
75 and 85 percent. One firm reports 21 zones. Prices are quoted in
mixed carlots, freight allowed, in each zone. Doors are delivered in
the mill zone at the f. o. b. mill price. Differentials quoted by one
manufacturer for the various zones ranged from 10 to 70 cents per door.
A zone structure is also used in distributing linseed oil and white
lead. In the determination of prices of linseed oil, one of the largest
producers divides the country into eight zones, according to distance
CONCENTRATION OF ECONOMIC POWER 17
from producing point. Delivered prices are the same to all destina-
tions witliin a zone.
Most paint dealers have an agency contract with one of the large
white lead producers. The agency contract provides for sales on a
consignment basis, with payment to the manufacturer being made ls
the product moves from the shelves of the dealer, and with retail prices
determined by the producing company. Price lists are furnished by
the manufacturer. With fixed diiferentials between prices paid by
dealers, painters, and the over-the-counter trade, wholesale prices
are set on a zone basis. The base or "par" zone comprises about
one-half of the country with three or four other zones making up
the remainder. Zones are referred to as "ji cent" zone or "K cent"
zone according to the differential above the price in the "par" zone.
Prices are uniform within zones.
Range boilers are sold on an f. o. b. shipping point basis, subject to
freight allowances which are determined for the most part by a
zoning system. Full freight is allowed in the base zone, and varying
schemes of freight equalization are provided for points outside of this
zone. For example, one large manufacturer allows full freight m
zone A (the base zone) on shipments of six or more pieces to jobbers'
stocks, but no freight is allowed on direct shipments. In zone B,
freight is equalized wdth the rate from the zone A boundary on rail
shipments of six or more pieces to jobbers' stocks. When boilers are
shipped to zone C (the Pacific States), freight is equalized with zone
A boundary on carlot rail shipments only.
(/) Uniform delivered prices for all destinations are quoted for two
products — insulation board and plumbing materials. Insulation
board is sold by most companies on a zone delivered price system. A
separate price list is published for each zone, although the carlot prices
are the same in all zones for many of the important products, re-
gardless of the plant location. For example, the delivered price to
dealers on }^-inch board, the product studied in this report, is the
same Nation-wide, $33 per thousand square feet in carlots to all
destinations. However, it is reported the less-than-carlot prices of
this product do vary according to zone or producing plant. Uniform
delivered prices (in carlots) throughout the country are achieved by
the generally accepted practice of granting full freight allowance.
In the distribution of plumbing fixtures, manufacturers usually
establish a list price which applies to plumbers and contractors all
over the country. Sales to jobbei's and wholesalers are made at a
discount off the list — usually 20 percent. Carlot sales are delivered
free to customers in important trading areas such as medium-sized
or large cities. Customers in outlying areas, however, pay the costs of
delivery from the recognized jobbing center. On orders for less than
carlot quantities, the manufacturers allow freight at the carlot rate
and the buyers pay the difference between the less than carlot and
the carlot rate.
ig) Miscellaneous geographical price structures. — Limited areas of
uniform delivered prices are maintained by the manufacturers of
windows and window frames. Like doors, these products are quoted
with varying discounts from a nominal list price. Plants are small and
more \\idely distributed than those manufacturing doors. The sales
tenitory of individual plants is usually limited, and sales are made at
uniform delivered prices anywhere in this territory.
\g CONCENTRATION OF ECONOMIC POWER
Brick, sand, gravel, crushed stone, and building tile are sold within
narrow markets. These products are produced, for the most part,
in small-scale operations. The market areas are limited by high
transportation costs and low unit values; moreover, the raw material
is widely distributed. Most producers price common brick on an
f. o. b. plant basis, with a fixed delivery charge for job-site deliveries.
In the larger areas this delivery charge is on a zone basis, but in smaller
places the base delivery charge applies anywhere in the area served.
Production and market areas for face brick vary but slightly from those
for common brick. However, due to the fact that not all clay is
suited for face brick and the transportation cost is smaller per unit
value, face brick has a wider market range than common brick
Partition tile also has a much wider selling area th^n brick. Prices
are quoted f. o. b. cars destination or, when shipped by trucks delivered
to the job site. In one city, these prices to contractors were $62.10
per thousand in carlots when delivered to rail siding and $70.50 per
thousand in trucklots when delivered to job site, in the city.
Quantity and Functional Discounts.
Provisions for quantity discounts are frequently included in the
marketing arrangements for building materials, particularly in the
wholesale market. The amount of the discount is often related to the
method of dehvery, with distinctions between carlots, less than carlots,
and truck shipments. There are two systems for determining quan-
tity discounts for building materials: (1) The use of fist prices having
fixed differentials between carlot and less than carlot prices and (2)
the use of a basic price list with a schedule of quantity reductions
progressively greater for each added bracket of units ordered. The
system used varies with the item and its marketing structure. Or-
dinarily, quantity discounts are given on orders for delivery in one
shipment, billed to one consignee, for delivery at a single destination,
but they may also be based on the total volume of purchases during
a stated period.
Discounts may differ not only with the quantity purchased but also
with the precise function performed by the buyer. For example,
added discounts may be granted to dealers maintaining stocks of a
specified size or display rooms. Discounts may also vary between
dealers who actually take title to the merchandise and those who act
merely as agents. Quantity discounts on roofing vary from 6 percent
on less than carlot rail shipments to 14 percent on full carlot rail
shipments, with 10-ton trucklot deliveries receiving 10 percent off
list. A further discount is given as "wholesalers' compensation" to
distributors maintaining stocks of roofing materials and purchasing
in carlots.
Quantity discounts may be granted by changes in the list price
itself. Thus on carlot orders of insulation board (56,000 square
feet), the list price is $33 (per thousand); on half carlots it is $34; for
lots of 7,000 to 28,000 square feet, $35; and on less than 7,000 square
foot, $36. In addition to quantity discounts, wholesalers are entitled
to additional discounts of $2 per 1,000 feet where delivery is direct from
manufacturer to purchaser, and $3 per 1,000 feet when delivery is to
■warehouse stock.
In some industries, practices vary considerably between manufac-
turers. Thus in the paint industry some companies maintain a com-
plex system based on quantities sold, while others allow a uniform
trade discount. The general tendency, especially since the Robinson-
CONCENTRATION OF ECONOMIC POWER jg
Patman Act of 1936, has been away from quantity-discount plans in
favor of a straight functional discount on all purchases.
For example, prior to 1936 one large paint company maintained a
profit-sharing scheme of discounts based on volume purchased during
1 vear. This scheme was abandoned in December 1936 in favor of
quantity discounts based on the size of each order. Until recently,
the company granted no discount on orders of 11 gallons or less; on
12 to 35 gallons, inclusive, 5 percent; and on orders of 84 gallons or
more, from 5 to 10 percent. In October 1939 the company discon-
tinued this scheme and now quotes any quantity at list less 10 percent.
The discount may depend on the method of packaging. Thus, in
the case of white lead, a differential of }4-cent per pound exists be-
tween prices on 100-pound kegs and 50-pound kegs. The differential
is applied to each successively smaller package and amounts to %-cent
per pound on material in 12K-pound kegs as compared with the price
in 100-pound kegs.
In general, no quantity discounts are allowed on plumbing fixtures
such as closets, lavatories, sinks, etc. The usual trade discount to
jobbers and wholesalers is 20 percent. Some companies, however, do
not aUow any trade discount or freight on orders of less than six pieces.
On range boiler sales some companies allow a trade discount, usually
5 percent, on six or more items, while other com^panies quote carlot
and less than carlot prices, the former being about 5 or 6 percent
less than the latter.
Cash Discounts and Terms.
Cash discounts for payment within a set time are allowed on the
sale of most building materials at wholesale. By far the most common
discount is 2 percent, but discounts have been reported ranging from
1 percent to 5 percent. On certain groups of commodities the dis-
count may be expressed as a fixed amount per unit, instead of a per-
centage of sales price; for example, on brick and tile it may be quoted
as 50 cents or $1 per 1,000 while for plaster or for sand, gravel, and
stone it may be 25 or 50 cents per ton.
While the amount of cash discount is more uniform among com-
panies and products than are many other selling practices, the time
within which payment must be made in order to receive the discount
varies. The provisions most frequently stated are that payment
must be made 10 days after shipment or after delivery; by the 25th
of the month on deliveries prior to the 15th; by the 10th proximo
for shipments between the 15th and last of the month; or by the 10th
proximo. Many companies, as a matter of practice, allow the cash
discount for payment within any reasonable time, particularly at retail.
In general, prices are net after the discount date and due in either 30
or 60 days. Some companies charge interest on accounts not settled
by the due date.
Cash discounts are figured on the net price after deducting freight
and other delivery charges and allowances.
Protection Against Price Changes.
The prices of many building materials, such as paint, turpentine,
linseed oil, and oak flooring are subject to change without notice, and
all purchases are billed at the price in effect the date the order is
received. Where price lists are used, as in the case of white lead, the
lists are usually issued well ahead of the date on which they ^are to
become effective, thus affording some measure of protection against
20 CONOENTRATION OF ECONOMIC POWER
price change to the buyer, particularly in the event of an advance
m prices.
In the case of a considerable number of building materials, however,
specific provision is made to protect buyers against unexpected changes
in price. There are several ways in which this may be done. Thus,
roofing manufacturers, when announcing a price advance, customarily
set a period within which orders will be accepted and shipped at the
old price; in the event of a decline unshipped orders on hand and
shipments in transit at the time of the reduction (estabUshed by date
of paid freight bill) are invoiced at the reduced price. On Govern-
ment bids, in the event of a price rise, contractors are billed at the
prices in effect at the time bids were filed, provided the "buyer fur-
nishes a certified copy of the Government award and contract.
Plumbing fixtures are sold on a somewhat similar basis. If the
price is raised, orders, which are on hand or postmarked to show they
were in transit at the time of the change, are accepted at the old
price, and wholesalers are allowed 15 days in which to place actual
orders for jobs on which they made bids or quoted prices based on the
lower price. In the event of a price decline, goods in transit are
billed at the lower price.
On millwork, where sales are often contracted for in advance of
production, deliveries are made at the price in effect at the time the
order was placed in the event of a rise; but at the price in effect at
time of delivery if the price has been reduced in the interval.
Marketing practices for numerous other products, such as insula-
tion board, heating boilers, and radiation provide a 30-day period of
protection against changes in price.
Other Allowances — Advertising, Etc.
Many large manufacturers of branded or trade-marked building
materials provide advertising and other sales promotion plans for
their retail dealers. These may take the form of advertising displays,
cuts for use in local advertising, display units, booklets, and other
promotional material, which is supplied by the manufacturers at little
or no cost to the retail dealers. Some manufactm-ers, such as floor
tile and plumbing fixture producers, maintain display rooms in key
cities for the use of leir retail dealers, while other companies grant
extra discounts (15 or 20 percent) on items purchased for display
purposes.
Channels of Distribution — Wholesale Markets.*
The building materials included in this study are generally dis-
tributed from the manufacturer to the contractor or ultimate user
through the following channels:
* There are no reliable data available suitable for use in this study on channels of distribution. The
Census of Business: 1935 contains a great deal of useful information concerning the distribution of manuv
facturers' first sales, but because of the Census definitions of "own wholesale branches," "industrial and other
large users," and "wholesalers and jobbers," the data contained therein are of little use for the purposes of
this study. Thus, the Census definition of the wholesaler includes a dealer who sells to industrial users,
and industrial users are defined to include contractors. Therefore, the data showing percentage of sales
going to wholesalers and jobbers may include sales going to local distributors who sell both to contractors
and to over-the-counter trade and to jobbers who sell only to dealers, and the data showing percentage of
sale to industrial and other larger users may include sales to contractors and to industry. The sales to "own
wholesale branches" are defined as those which are channeled through company-owned outlets as well as
to those where no stocks are carried and which are primarily selling offices acting as headquarters for sales-
men. Therefore, if a sale were made to a local lumber yard by a traveling salesman who maintains no local
office, that sale would be allocated to the channel "sales to wholesalers and jobbers," whereas if the same
sale were made by a salesman who maintained an office it would be classified under "sales to own whole-
sale branches." The information, therefore, included in the Census of Business: 1935 has a very limited
use in a detailed study of the kind undertaken here. The discussion of the channels of distribution in the
building-materials industries is based primarily, therefore, on information gained from field contacts and is
necessarily very general in scope.
CONCENTRATION OF ECONOMIC POWER 21
(a) From manufacturer direct to contractor or industrial user.
(6) From manufacturer to dealer to contractor.
(c) From manufacturer to broker or jobber to dealer to con-
tractor.
(d) From manufacturer to company-owned outlet to contractors
and dealers.
(a) Some of the materials included in the study are produced pri-
marily for local consumption and these are generally sold directly
from manufacturer to contractor. In some instances, sales are made
by dealers for a commission, but the order is delivered directly from
the manufacturer to the user without being handled by the dealer.
The materials sold in this manner include brick, sand, gravel, crushed
stone, ready-mixed concrete, and, in some areas, millwork.
(b) The most typical channel of distribution of the materials
included in this study directs the flow of goods from the producer
to a local dealer who, in turn, sells to the contractor or ultimate user.
In this type of distribution, the dealer assumes aU of the handling and
credit functions. Commonly the dealer goes by a variety of names.
In the plumbing equipment industry, for example, the dealer who
performs the intermediate function between manufacturer and con-
tractor generally calls himself a jobber or a wholesaler. In the
lumber and miscellaneous materials industry, the dealer is generally
housed at a local lumber yard and calls himself either a wholesale or
retail dealer. In either case, he makes sales to contractors and,
therefore, fits into the "dealer" classification adopted in this study.
In the paint industry, the local dealer may be either a lumber yard or
a hardware store or a paint store. Materials sold through this
channel include lumber and millwork, paint and paint materials,
window glass, building tile, insulation board, plaster, roofing, sewer
pipe, cement, and lime.
(c) In the lumber industry, sales are frequently made by the
producer to brokers or jobbers who buy in large quantities and sell,
in turn, to the local dealer. The jobbers generally take title to and
handle the material while the brokers perform solely a selling function.
In the mill-work industry jobbers frequently buy up material in the
Midwest and far West and sell it to dealers throughout the country
in competition with local products and nationally advertised brands.
{d) In plumbing and heating, glass, and paints, national manufac-
turers frequently maintain their own outlets in the larger cities and
sell both to other dealers and to contractors, painters, and plumbers.
This latter type of distributory channel has become increasingly pop-
ular in recent years.
Exclusive Dealerships.
Although they may handle several different materials, a consider-
able number of building material dealers restrict their sales of each
material to the products of one manufacturer. Retail lumber yards,
for example, often sell only one brand of cement, lime, roofing, and
insulation board. Jobbers and other wholesale distributors of heating
boilers and radiation usually sell one make exclusively. Similarly,
plumbing fixtures are often sold through exclusive dealers; paint
manufacturers sell almost entirely through outlets which distribute
one brand of paint. In addition many paint dealers have an agency
contract with one or another of the large white lead producers.
22 CONCENTRATION OF ECONOMIC POWER
Independent Distributors.
While each channel of distribution which has so far been described
has its importance, the bulk of building materials is sold through inde-
pendent dealers, wholesalers, and retailers. Moreover, sales through
these independent channels seem to be increasing in many lines. As
sales increase and new outlets are needed, these additions are most
easily financed by independents.
Channels of Distribution — Retail Markets.
Many of the principal building materials are popularly sold at retail
by multiline dealers, the retail lumber yards. In addition to all
kinds of lumber and millwork, these concerns often sell lime, cement,
roofing, plaster, partition tile, floor tile, sewer pipe, and glass, and
frequently take orders for brick, sand, gravel, and stone. Hardware,
specialty stores, department stores, and other retail outlets distribute
paints and paint materials and glass in the local area. Manufacturers'
wholesale stores, independent plumbers, and mail order houses supply
plumbing fixtures. Manufacturers' representatives, independent
jobbers, and heating contractors distribute heating and range boilers
and radiation. The distributors of structural clay products, sand,
gravel and stone, deliver from their own or railroad yards, usually in
the suburbs of the metropolitan areas, but with offices and agents
downtown.
Building materials are usually delivered by the dealers to job site in
the metropolitan area without charge. However, in certain large
cities zones are established with free delivery in some and a transpor-
tation charge in others, particularly, for the more bulky materials such
as brick, sand, and gravel.
Quantity discounts, as such, are seldom granted on sales at retail,
but special concessions may be made to the customer if his order is
for an unusually large quantity. In such cases, a regular customer
who purchases a full line of supplies may be charged full price on all
products nominally, but granted a discount on the total purchase.
On large sales of a single material, the retailer frequently quotes a
special contract price.
When cash discounts are granted by retailers, the terms are usually
similar to those allowed in the wholesale market. Thus, 2 percent is
commonly granted for payment within 10 to 30 days from the date of
delivery. In a few cases, a discount of as much as 5 percent was
reported.
PRICE LEVELS AND TRENDS
Wholesale Prices.
While there were marked differences between individual commod-
ities, the prices of most of the building materials studied reflected to a
greater or lesser extent the general movement of industrial prices
during the period 1935 to 1939. Prices both at wholesale and retail
showed mixed trends during 1935 and early 1936, rose in late 1936
and 1937, turned downward with the recession of 1937-38, and
maintained stability toward the latter part of 1938 and in the first 8
roofing, lumber, plumbing supplies, heating equipment, linseed oil,
white lead, and hydrated lime.
However, many of the individual matei'ials did^not participate in
this broad trend. Even during the steep rise in the general price level
CONCENTRATION OF ECONOMIC POWER
23
of 1936-37 the prices of some of the materials moved against the trend.
These differences in behavior are shown in the accompanying sum-
mary covering the movement in wholesale prices of 34 commodities.
(See table 1.)
There was no consistent trend during 1935 and the first part of 1936,
the prices of 11 materials remaining relatively stable, 15 revealing a
rising trend, and 8, notably the aggregate materials, sewer pipe, lime,
and 2 lumber items, declining. During the second phase, the broad
advance of late 1936 and early 1937, more than two-thirds of the 34
commodities rose in price, but 7 remained stable, including outside
paint, varnish, radiation, and window glass, and 5, such as ready-
mixed concrete, floor tile, and inside paint, declined. Sixteen of the
34 commodities participated in the general downswing of 1937-38,
notably the paint materials, lumber, and plumbing and heating; but
14 remained stable, characteristically the prepared paints, enamels,
and varnishes, and the structural clay products; while 4 actually
advanced in price — cement, radiation, crushed stone, and gravel.
From July 1938 to September 1939 only 2 materials, crushed stone and
ready-mixed concrete, exhibited a falling trend, while 11 rose, including
the paint materials, lumber, and some plumbing equipment. The
remaining 21 materials remained stable.
Table 1. — Summary of trends in wholesale -prices of building materials for 4 periods,
19S5 to 1939
January 1935 to
June 1936
July 1936 to Sep-
tember 1937
October 1937 to
June 1938
July 1938 to Sep-
tenaber 1939
Item
Ris-
ing
trend
Fall-
ing
trend
Sta-
ble
Ris-
ing
trend
Fall-
ing
trend
Sta-
ble
Ris-
ing
trend
Fall-
ing
trend
sta-
ble
Ris-
ing
trend
Fall-
ing
trend
Sta-
ble
Insulation board
X
X
X
X
X
X
X
Plaster
X
Asphalt roofing
X
X
x'
X
X
Cement
X
X
X
X
X
X
Hydrated lime..
X
X
X
Outside paint __-
X
X
X
X
X
X
Inside paint _-
X
X
X
Enamel
X
X
X
X
X
Varnish
X
X
White lead.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Linseed oil
Turpentine .-
X
X
Douglas fir
X
X
X
X
X
X
X
X
Oak flooring
X
X
X
X
X
Southern pine
Ponderosa pine
X
Ponderosa pine windows..
X
X
X
X
Heating boilers.
X
Radiation
X
X
X
Range boilers.
X
X
X
X
X
X
X
X
X
X
X
X
Lavatories
X
X
X
X
Bath tubs
X
Sinks
X
X
X
X
X
X
X
Common brick '
X
Face brick '
X
X
Building tile
X
X
X
Floor tile...
X
X
X
Sewer pipe
X
X
X
X
Window glass
X
X
X
Crushed stone '
X
X
X
X
X
X
X
X
X
X
Gravel'
X
Sand' .-
X
X
X
Ready-mixed concrete '...
X
X
Total
15-
8
10
21
5
7
' 4
16
13
11
2
20
' Retail prices .
24 CONCENTRATION OF ECONOMIC POWER
The prices of a number of building materials show behavior at
marked variance to the trend of conmiodity prices generally. For
example, cement declined in 1936-37 and rose in 1937-38, moving
directly against the general trend. Insulation board, plaster, and
building tile remained stable during the entire period, while turpentine
showed a consistent declining trend.
Table 3 in appendix B summarizes wholesale price movements for
27 of the commodities included in the study. For each product it
shows the wholesale index as of January 1935, the dates and levels of
the high and low prices reached during the period, and the ratio of the
high price to the low.
For the period as a whole, the net movement was generally upward.
Of the 25 commodities for which comparative data were available,
13 — enamel, varnish, white lead, linseed oil, plumbing and heating
equipment, and structural clay products, were higher in September
1939 than in January 1935; 11 — roofing, lime, prepared paints, and
lumber, were lower; while insulation board remained unchanged.
Fifteen out of 27 commodities were at their lowest levels in 1935, 4 in
1936, 1 in 1937, 4 in 1938, and 3 in 1939. Four commodities reached
their peak levels in 1935, 2 in 1936, 16 in 1937, 2 in 1938, and 3 in 1939.
The range of prices varied markedly for different conunodities.
The ratio of the high price to the low for the period was between 1.0
and 1.1 for 7 conunodities; between 1.1 and 1.2 for 6 commodities;
between 1.2 and 1.3 for 8; and more than 1.3 for the remaining 6.
Extreme contrasts in behavior are apparent. The prices of plaster
and sewer pipe, for example, remained practically unchanged, while
the high price for turpentine was 217 percent of its low.
Retail Prices.
In general the retail prices of each of the building materials studied
in this report followed the trend of wholesale prices for the same
commodity, particularly in and near major producing areas. How-
ever, price fluctuations at retail were typically narrower than at
wholesale, and extreme upswings and downswings in the latter market
were usually smoothed out in the former. This can be seen by com-
paring the data in table 4 of appendix B, which presents retail
price ranges, with table 3, which shows similar statistics at wholesale.
The ratio of high prices to low was substantially narrower at retail
than at wholesale for most commodities. For example, the high price
of turpentine was 217 percent of its low at wholesale, while this ratio
was only 130 percent at retail.
The reason for the greater stability of retail prices probably lies in
the nature of local market conditions. When prices are rising the
inventories of materials purchased at lower prices act as a check on
increases, while on the downswing the presence of high-cost inventories
create pressure to resist price cuts. At the same time, dealers' trade
organizations in many cities can exercise effective pressure for price
stability, particularly in smaller cities where the number of retailers is
not great. Furthermore, in the building material field, the "specific
job contract" exerts a strong pressure toward price stability. These
contracts between the dealer and contractor require the dealer to sup-
ply the contractor with all the necessary material for a specific job at
contract prices, except that if the "market" price for a commodity
drops during the period covering the contract, the buyer v,all get the
CONCENTRATION OF ECONOMIC POWER
25
benefit of the lower prices. Hence, when prices advance the dealer
must supply a large part of his trade at lower prices previously con-
tracted for, wliile if prices fall, he must pass on the benefits on sales
already made.
As at wholesale, the retail price movements of different materials
show considerable contrast. Thus, the retail prices of sand, gravel
and stone, cement, lime, plaster, insulation board, paints, and struc-
tural clay products changed but little during the period studied,
while prices for lumber, plumbing and heating equipment, .turpentine,
white lead, linseed oil, and roofing moved much more widely, generally
reflecting the broad trends of the period which have been described
earlier.
Geographical Differentials.
The trends w^hich have been described are, of course, national aver-
ages. For some of the materials studied, price trends in the several
geographical regions conformed closely with the pattern of these
averages; for others regional price trends differed considerably from
the national. These comparisons are presented in detail in the analysis
of each commodity in the following chapters; space limitations pre-
clude their consideration at this point. However, it is feasible to
compare the prices of the different materials in the nine regions during
a single month, September 1939. This is done in the following sum-
mary which indicates the average rank of all areas at wholesale and at
retail for all commodities combined.
Rank (1 represents the lowest prices- — 9 represents the highest prices)
Region
Whole-
sale
Retail
Region
Whole-
sale
Retail
Middle Atlantic -
1
2
3
4
5
1
2
3
5
4
East South Central--
6
7
8
9
6
East North Central .-
Pacific
West South Central
7
New England ..
8
South Atlantic
Rocky Mountain
9
West North Central-
It is evident that prices are generally highest in the Rocky Mountain,
Southwest, and Pacific States and lowest in the industrial Northeast.
The reasons for these differences are fairly apparent. The Rocky
Mountain region in which prices are highest is remote from the major
centers of production of most materials, whereas the Northeast is most
advantageously situated in this regard.
Tables 2 to 4 summarize these regional differentials for many of the
materials which are widely sold.^ The wholesale prices of plumbing
fixtures and insulation board are uniform Nation-wide; the same is
true in the case of retail prices of plumbing fixtures. On all other
products, however, the data show distinct regional differences with
price levels usually following the general pattern indicated in the above
summary.
' In obtaining these ranks, the prices were averaged for the various regions and the regional average then
divided hy the figure for the Middle Atlantic region (including New York). The resulting relatives were
ranked (1 to 9) and the average rank obtained for each region.
26
CONCENTRATION OF ECX)NOMIC POWER
Table 2. — Distribution of geographical areas according to ranks,^ based on relative
levels of building material prices in September 1939
WHOLESALE PRICES
Regions
Rank
New
Eng-
land
Middle
At-
lantic
East
North
Central
West
North
Central
South
At-
lantic i
East
South
Central »
West
South
Central
Rocky
Moun-
tain
Pacific
1 .•
6
2
4
6
16
1
1
13
3
1
2
2 ._
5
8
6
1
6
6
2
11
2
3
2
2
5
4
3
2
6
4
1
3
4
1
4
6
1
1
5
1
1
1
6
1
2
1
4
6
1
1
7
3
8
2
11
5
9
1
2
A verage ------
3.1
3
1.9
1
1.9
2
4.8
5
3.4
4
4.2
6
6.3
8
6.2
9
4.2
7
RETAIL PRICES
1
6
3
8
14
3
1
6
7
4
2
4
3
4
1
1
ft
4
2
6
4
5
1
6
2
1
3
1
3
3
1
3
3
1
1
4 --- ---
■ 4
4
4
1
1
1
1
1
5
2
1
3
6
2
"2"
2
1
9
2
7
7
5
3
5
8
1
2
6
9
1
Average.
Adjusted
2.9
3
1.8
1
2.5
2
4.0
4
4.3
5
4.6
6
6.1
8
6.4
9
5.0
7
> Number of times each region received the indicated rank in the consideration of prices for 21 building
materials (rank 1 represents the lowest prices; rank 9, the highest).
2 Comparison provided for only 20 products in these cities.
Table 3. — Geographical differentials in wholesale prices
[Relatives by regions based on average price in the Middle Atlantic Region as 100.0]
Material
New
Eng-
land
Middle
At-
lantic
East
North
Central
Wert
North
Central
South
At-
lantic
East
South
Central
■V\''est
South
Central
Rocky
Moun-
tain
Pacific
Insulation board
Plaster. .
100
112
103
117
101
102
101
101
100
100
103
100
102
100
102
102
100
100
100
100
105
'00
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100-
136
100
104
100
100
100
100
100
100
103
98
99
95
100
100
100
100
100
100
103
100
157
104
131
104
106
103
103
102
101
106
91
100
91
109
109
too
100
100
100
110
100
138
109
115
102
103
101
101
102
99
97
100
172
111
122
103
105
103
103
103
101
97
100
180
110
138
105
108
104
104
106
104
103
93
95
92
120
123
100
100
100
100
114
100
158
130
177
113
118
109
109
110
105
116
75
110
88
131
134
100
100
100
100
128
100
169
Roofing - -
115
Lime, hydrated
Paint, outside
Paint, inside
Enamel
163
100
100
100
Varnish -.
100
White lead
105
Linseed oil .
107
Turpentine -
110
64
Oak flooring-.-
Fir doors
97
102
108
109
100
100
100
100
105
93
96
109
106
100
100
100
100
107
113
82
Boilers, heating
Radiation
121
118
Closets
100
Lavatories
100
Sinks
100
Bathtubs
100
Tile, floor
125
Note. — Commodities selected are those which are distributed throughout most regions.
CONCENTRATION OF ECONOMIC POWER
27
Table 4. — Geographical differentials in retail prices
[Relatives by regions based on average -price in the Middle Atlantic H^ion as 100.0]'
Material
Insulation Board . . .,
Plaster
Roofing —
Cement
Lime, hydrftted
White lead
Linseed oil -
Turpentine
Oak flooring -.
Fir doors
Boilers, heating
Radiation --
Closets
Lavatories
Sinks ^-
Bathtubs......
Brick, common
Sewer pip^
Sand
Gravel.. .-■
Stone --
New
Middle'
East
West
South
East
West
Rocky
Eng-
At-
North
North
At-
South
South
Moun-
land
lantic
Central
Central
lantic
Central
Central
tain
102
100
. 102
106
104
107
106
110
127
100
144
162
150
174
185
166
102
100
101
117
108
108
123
146
132
100
107
128
125
135
136
155
138
100
116
138
117
136
153
233
100
100
100
101
102
102
105
110
103
100
100
102
108
103
112
109
119
100
117
123
130
145
145
136
107
100
101
109
100
85
Ul
141
109
100
120
129
118
118
147
121
104
100
103
107
114
115
124
125
100
100
105
113
111
112
123
127
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100-
100
JOO
100
100
100
100
100
100
100
100
100
100
100
100
136
100
103
116
113
96
105
129
100
100
89
98
105
102
108
142
68
100
95
71
132
120
114
97
69
100
77
117
139
135
120
60
88
100
104
96
140
150
125
82
Pacific
109
175
118
107
189
J109
109'
138
fs
120
114
100
100
100
100
115
121
108
72
78
Note.— Commodities selected are those which are distributed throughout most regions.
The geographical variations were surprisingly large for many ma-
terials, with the regional differences consistently larger in retail
markets than at wholesale. For example, comparing the Rocky
Mountain States w ith the North Atlantic area, the largest differen-
tials at wholesale were for hydrated lime (77 percent), plaster (58
percent), and radiation (34 percent). Wholesale prices of plaster
averaged 80 percent higher in the West South Central area than in
the Middle Atlantic. In the retail market, however, again comparing
the Rocky Mountain region with the Middle Atlantic, hydrated lime
averaged more than two and one-third times higher, plaster 66 per-
cent, roofing 46 percent, cement 55 percent, and heating boilers and
radiation 25 percent higher. As might be expected, the general prob-
lem of higher prices in the West does not apply to materials produced
principally in that area. Thus the price of fir doors was approxi-
mately 25 percent higher in the South Atlantic region than in the
producing area. Retail prices of sand, gravel, and crushed stone ran
consistently lower in the Rocky Mountain, Pacific, and New England
regionsothan in other parts of the country. Oak flooring prices were
lowest in the East South Central region (the principal producing re-
gion) and 17 and 20 percent higher, respectively, in the Rocky Moun-
tain and Pacific areas. Retail prices of oak flooring were 57 percent
higher in the Rocky Mountain region than in the East South Central
area.
Differences Between Wholesale and Retail Prices.
Comparison of wholesale and retail price levels in September 1939
revealed that large differences prevailed in the average distributive
mark-ups both between products and between regions.®' The sum-
• The typical prices prevailing in the various cities were averaged by regions and for the composite for
both wholesale and retail series. The percentage difference, the diflterenco between wholesale and retail
prices divided by wholesale prices, has been termed the margin, or mark-up. The data cannot be taken
to represent absolute margins. They are based on replacement costs. Moreover, the limited coverage of
the prices and the different timing of the fluctuations in wholesale and retail series preclude their use as
definite measures of margins. They do, however, iuu»9te a central tendency at a spot date, September
275852 — 41— No 33-
28
CONCENTKATION OF IQOONOMIC POWER
mary data for 21 building materials are shown on table 5. The
regional statistics are presented in the individual chapters.
For the 21 products for which data were available, the differences
between wholesale and retail prices ranged from 14 percent (of the
wholesale price) for radiation to 81 percent for fir doors and 87 per-
cent for turpentine. In 11 cases this spread varied between the
limits of 20 and 30 percent; 6 products fell in the 30 to 50 percent,
class and a mark-up of 60 percent was recorded, for one item.
It is difficult to draw from the data a consistent geographical pat-
tern of these differences between wholesale and retail prices. How-
ever, the following observations seem warranted;
1. In general, there was a tendency for larger margins to prevail-
in areas where retail prices were relatively high.
2. Margins tended to be lowest in the producing areas and
highest in the regions farthest from the source of supply.
3. There was a degree of association between the size of the
spreads and the relative flexibility of the prices; the larger
spreads were noted in the areas where retail prices changed
mfrequently.
The largest mark-ups were recorded more frequently in the West
South Central, Rocky Mountain, and Pacific areas than in other
regions. The lowest spreads usually occurred in the Middle Atlantic
and East South Central" States.
Table 5. — Wholesale and retail prices and spreads, September 1939
Item
Unit
Average of typical
prices
Difference
Wholesale
Eetail
Amount
Percent
M square feet.
Ton
Square.
Barrel..
Ton
$33.00
13.58
4.58
2.01
12.28
.0925
.7644
.3238
35.91
68.12
28.41
33.48
1.90
1.53
88.67
.3020
4.68
16.48
11.62
15.04
41.28
$46. 35
17.57
5.83
2.67
19.64
.1125
.9821
.6058
44.50
87.20
36.76
44.12
3.43
2.29
120. 58
.3440
6.38
20.60
14.53
18.80
51.60
•$13. 35
3.99
1.25
.66
7.36
;0200
.?177
.2820
8.59
19.08
8.35
10.64
1.53
.76
31.91
.0420
1.70
4.12
2.91
3.76
10.32
40.5
Plaster
29.4
27.3
32.8
60.0
White lead
Pound
Gallon
Gallon
M board feet..
M board feet..
M board feet..
M board feet..
Each
Each
Each-
Square feet
Each
21.6
28.5
87.1
23.9
28.0
29.4
31.8
80.5
49.7
36.0
13.9
36.3
Each....
25.0
Each...
25.0
Each
25.0
Each
25.0
CHAPTER III
INSULATION BOARD
DESCRIPTION OF THE INDUSTRY
The value of production of wall and insulation board and insulating
materials other than gypsum was approximately $42,000,000 in 1937.
Of this total, more than half was the value of rigid insulation board.
The production of this item was valued in 1937 at $22,000,000, as
compared to only $10,000,000 produced in 1931. ^
According to the Census of Manufactures, 114 establishments were
engaged in the production of wallboard and plaster (except gypsum),
buUding insulation, and floor composition in 1937. No break-down of
the value of product by States is available for this industry. The pro-
ducers were scattered over 23 States. Important producing States in
this industry are Minnesota, Illinois, Indiana, Louisiana, Ohio, New
York, and New Jersey.
The production of insulation board is concentrated in the hands of
a few companies. According to the Department of Commerce, 82 per-
cent of the value of insulation board produced in 1937 was accounted
for by the four largest companies in the industry.
The manufacturers of structural insulation produce a variety of
products. Key lap lath, which provides ship lap joints and beveled
edges, is frequently used to assure continuous insulation and rein-
forcement of plaster in joints. Asphalt key lap lath, sheeting, tile,
and plank are alsO important products. The Jo-inch thickness has a
back surface asphalt treated and finished off with special aluminum
coating which provides a vapor barrier. Insulation blocks are plain
laminated blocks used under moderate temperature conditions requir-
ing extra thick insulation. Adhesives and moldings, also products of
this industry, have popular uses.
The product selected for pricing in this survey was rigid insulation
board of K-inch thickness. This is a dual-surfaced board with one side
plain finish, the other side tweed-textured finish.
Channels of Distribution.
Insulation board is sold principally by the manufacturer to local
building material distributors who in turn service the dealer. The
dealers sell to the contractor and over-the-counter trade.
The specifications established in this study call for prices on sales
by manufacturer to retail distributor or dealer in the wholesale
market, and in the retail market on sales from dealer to building con-
tractor. According to the trade, a "dealer" means any buyer of struc-
tural insulation products at current published dealers' prices, terms,
' Census of Manufacturers, 1937, Part I, table 4, p. 871.
29
30 CONCENTRATION OF ECONOMIC POWER
and conditions of sale. This is limited to a trade buyer meeting the
following specifications:
1. He must be engaged in selling lumber and building materials
at retail to contractors, builders, and consumers in his trad-
ing area.
2. He must continuously maintain, for the sale and distribution
of such products, a plant or plants adequately equipped for
service to the public, with office, storage yard, or warehouse
kept open regularly during business hours.
3. He must maintain a sales service to contractors, builders, and
consumers.
4. He must carry a sufficient stock of such products to supply
his share of the normal retail requirements of the community
where such facilities are located.
PRICE STRUCTURE
Insulation board is sold by most companies on a zone price system.
A separate price list is published for each zone although for many of
the important products the carlot prices are the same in all zones
regardless of the plant location. For example, the delivered prices
to dealers of K-inch board, the item under consideration in this study,
are th^ same country-wide, $33 per thousand to all destinations. How-
ever, it is reported that the less-than-carlot prices of this product do
vary according to zone or producing plant.
Delivery Practices.
Uniform delivered prices of insulation board throughout the country
are achieved by the generally accepted practice of granting full
freight allowance on shipments from factories to wholesale and retail
distributors. Prices on straight carlot and half-carlot shipments
moving by all rail freight are f. o. b. shipping point and delivery is
made to customers' own private rail siding on the freight station or
public team track nearest destinations, with freight allowed to point
of delivery. The seller does not usually assume responsibility for
delivery from siding or freight station to the buyer's place of business.
Shipments by water transportation are subject to the same limitations.
Delivery is made to the steamship dock nearest destination or, where
joint water and rail haul is involved, to private rail siding or freight
station.
Prices on less than one-half carlot shipments are quoted f. o, b.
shipping point, and, if shipped by truck, delivery is made to customer's
regularly established warehouse and trucking charges are allowed to
point of delivery. If the material is shipped by rail, delivery is made
to freight station nearest destination. No allowance is made for
freight or cartage on material picked up at the producer's plant or
warehouse. Rail freight charges or joint water and rail freight
charges on shipments made by the producer are usually paid by the
buyer. The customer is reimbursed by the seller upon receipt of the
paid freight bill or duplicate.
Wholesale Commissions.
The retail dealer usually purchases from the wholesaler who is
eligible for the "wholesale compensation schedule"; that is, for a
trade discount. This means that the large distributor is eligible,
CONCENTRATION OF ECONOMIC POWER 31
based on his purchase of insulation products, for a discount or com-
mission because of his intermediary function. On sales made to
dealers or other consumers, where the goods are delivered direct from
manufacturer to purchaser, the wholesaler performs the function of
commission agent and receives from the producer a $2 fee per thou-
sand square feet. If the wholesaler purchases additions to his ware-
house stock, he receives a $3 reduction from dealer prices. At the
current price of $33 per thousand square feet of insulation board this
discount amounts to about 9 percent.
Quantity and Other Discounts.
Insulation board is sold in varying "price brackets." One large
company quotes the following differentials on sales of K-inch insulation
board in its seaboard zone:
PerM
Carlot, 56,000 square feet $33
Half-carlot, 28,000 square feet 34
7,000 to 28,000 square feet 35
Less than 7,000 square feet 36
Prices of other items vary accordingly. For example, in the case
of special ivory building board of 1-inch thickness, the spread is from
$50 for carlot quantities to $57.50 for lots of less than 3,500 square
feet; on small size cane tile board 1-inch thickness, the prices for these
quantities are $58 and $66.50, respectively. The prices of heavy
body adhesives vary from $1.35 per gallon in the 1-gallon can to $1
per gallon in the 5-gallon can. Moldings generally run 25 cents
lower per 100 lineal feet when purchased in carlo ts than in less than
carlot quantities.
"Price brackets" are based on products ordered for delivery in one
shipment and billed to one consignee (for delivery at a single destina-
tion). The order is usually diversified between the various structural
insulation items produced by the seller
Terms of payment are generally 2 percent discount (after deducting
freight) for cash within 20 days from date of invoice, or, net 60 days
from date of invoice, or at the buyer's choice, 2 percent 10th proximo,
net 30th proximo. The producer requires that receipted freight biUs
accompany remittance in support of deduction and credit for freight.
Price Guarantees.
It is common practice to guarantee orders against price decHnes.
In the event of a price decrease, all unfilled orders on hand on the
effective date of such price decrease are invoiced at the new and lower
price. Shipments in transit are also invoiced at the revised price
provided evidence is presented in the form of carriers' expense bill
showing that shipments were actually in transit and had not been
delivered before the price decrease became effective. Inventory
adjustments are not allowed.
In the event of a price increase, all unfilled orders on hand prior to
the effective date of the increase, including those in transit by mail or
telegraph and calling for shipment at mill convenience within 30
days, are invoiced at prices in effect prior to the announcement.
However, if the producer's mills are unable to ship the materials within
the 30-day period, the orders are billed at the advanced price or
canceled. This does not apply to portions of an order omitted from
the original shipment because of shortage of stock or mill conditions,
32 CONCENTRATION OF ECONOMIC POWER
which are invoiced at the same price and on the same terms as if
included in the original shipment, provided they are shipped within
30 days after the date of the original shipment.
PRICE LEVELS AND TRENDS
Wholesale Price Levels.
The wholesale price of K-inch structural insulation board in carlots
does not vary geographically. Full freight is allowed on all shipments
and plant prices are the same regardless of location. In September
1939, when this study was started, the price to dealers anywhere in
the country was $33 per thousand square feet.
Wholesale Price Trends.
Examination of the trend of prices from 1935 to date for the various
regions indicates that price changes are effective Nation-wide. (See
chart I.) The $33 price continued from January to August 1935; the
price dropped to $31 in September and was effective for 3 months.
The low level for the period was $29, effective for only 2 months,
December 1935 and January 1936. In February 1936 the price was
raised to $31. A further increase in April brought the level back to
$33 and there have been no further changes up to the present. There
have been only three different prices on this item during the entire
66-month period from 1935 to June 1940. The levels and their
duration follow:
Months
$29 per M board feet 2
$31 per M board feet 5
$33 per M board feet 50
There was no price change in the 42 months from April 1936 through
September 1939.
Geographical Variation in Retail Prices.
The levels .and trends of retail prices, on sales from dealer to
contractor, are not so uniform as is the case in the wholesale market.
On the K-inch structural insulation board which wholesales at $33 per
thousand, the prices varied at retail from $38 to $52.50. (See table 6.)
The modal price of $45 was found in 18 of the 50 cities included in the
survey. Although most of the cities in which the $45 price is typical
are located in the East and South, the same price was also quoted
frequently in all areas. The variability of retail prices for the country
as a whole is shown below:
iV?/7n6<T
Typical prices: of cities
$38 to $38.99 1
$39 to $39.99 L.. —
$40 to $40.99 -• 1
$41 to $41.99 —
$42 to $42.99 3
$43 to $43.99 —
$44 to $44.99 —
$45 to $45.99 18
Number
Typical prices — Continued. of cities
$46 to $46.99 5
$47 to $47.99 3
$48 to $48.99 4
$49 to $49.99 3
$50 to $50.99 7
$51 to $51.99 —
$52 to $52.99 1
Simple averages of the typical prices for the cities, by geographical
areas, are shown below. The highest average prices are in the Moun-
tain, Pacific, and West South Central areas while the lowest levels
prevail in the New England, Middle Atlantic, and East North Central
CONCENTRATION OF KCONOMK^ POWEll
33
Chabt I
INSULATION BOARD
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 » 100
UNITED STATES - Wtlght»d Avrogt Prlc«
WHOtfiALt
V -
V
REGION I - NEW ENGLAND
\
h
iJkLt
RfTill.
f
REGION H
MIDDLE ATLANTIC
ItCTIlL
/
1
\ L 1
V
!
_ _.
120
110
REGION
HI -EAST NORTH CENTRAL
LCULE
jll
-^RETAIL
— *wt—
v
REGION IZ - WEST NORTH CENTRAL
— --
,«eTAH.
^
1^
SICI
\
'
1935 1936 1937 1938 1939 1940 1941
uNiTto STATES Bureau Of labor statistics
REGION 3C - SOUTH ATLANTIC
y""*^
W^».o.
SALC
\
'
REGION 3r - EAST SOUTH CENTRAL
p.
^
:SALt
REGION 3nr - WEST SOUTH CENTRAL
1
■^
1— »MOl.tSAU
REGION -vm
• ROCKY MOUNTAIN
^^ : .KITAIL
:9A4.K
REGION
ir. ■ PACIFIC
pr'
tTAIl
L.
SAll
1935 1936 1937 1938 1939 1940 1941
34 CONCENTRATION OF ECONOMIC POWER
Regions. In some of the cities included in the study, building codes
do not permit frame constriction, and as a consequence sales of sheath-
ing insulation board are very small. This situation occurs in Phila-
delphia, St. Louis, and WUmington. Although there was a 38-percent
difference between the highest and lowest quotations reported any-
where in the United States, there was only a difference of $4.22, or
10 percent, be'^ween the highest and lowest typical regional prices.
Region
Typical retail prices
Range
Average
I. New England
II. Middle Atlantic
III. East North Central.
IV. West North Central
V. South Atlantic
VI. East South Central.
VII. West South Central
VIII. Rocky Mountain. --
IX. Pacific
$38.00 to $48.00
$42.00 to $50.00
$42.00 to $48.00
$38.70 to $50.00
$40.00 to $50.00
$45.00 to $50.00
$38.00 to $52.50
$42.00 to $55.00
$42.50 to $50.00
$44. 67
44.00
45.00
46.46
45.94
47.13
46.83
48.22
48.17
It is interesting that in this industry, in which carlot wholesale
prices are everywhere imiform, great geographical differences occur in
the final retail prices to consumers. Presumably these differences
are. the result of local distribution costs and market conditions, in-
cluding variation in consumers' bargaining power and sellers' com-
petition.
It is likely that some of this variation is accounted for by the pur-
chasing power of the distributor. There is a $3 per thousand feet
differential in price between the carlot (56,000 square feet) and the
7,000 square feet purchase. Buyers in depressed areas probably do
not achieve the advantages of quantity purchases.
The geographical differences in the spread between wholesale and
retail prices when dealers purchase in carlot quantities depend en-
tirely upon the retail price, for the wholesale level is the same country-
wide. The available margin to dealers in an area selling at $38
retail is 15 percent; the margin increases to 21 percent when the retail
price is $40; to 36 percent with a retail price of $45 (which is the
modal retail price for the United States as a whole), and to 52 percent
in areas where the dealers charge $50 for buUding board.
As in the case of wholesale prices, retail prices have been extremely
rigid in all regions since 1935. This is shown in chart I and tables
7 to 16. However, there are slightly different trends in different
areas. In the discussion which follows prices are discussed in terms
of relatives, the index numbers having as a base period the third
quarter of 1939.
The index of retail prices in the New England area, which had been
100 for 1935 and 1936, dropped to 99.6 in January 1937, a level which
held to the end of that year. A further slight decline to 99.4 in
January 1938 was also effective for 1 year to January 1939. The
index then regained its original level of 100, where it remained to the
end of the period.
The index of prices for the Middle Atlantic area did not change
from 1935 to the time of this study.
The index number for the East North Central region was 92.5
from January 1935 to November 1936. A slight increase occurred
CONOENTRATION OF ECONOMIC POWER
35
in December which carried the index to 93.1. In December 1937 it
rose to 93.8, and 1 month later, in January 1938, a sharp increase
carried the index to 98.9. The upward movement continued in
December 1938 to 99.7 and in August 1939 to 100.2.
Prices fluctuated only narrowly in the West North Central region.
The index number remained at 99.4 for the year 1935 and in January
1936 declined to 98. There was a slight increase in May 1936 to 98.5
and again in July 1937 to 99.4. Prices moved up slightly in July 1938 ;
since this date the index has been 100.
The indexes fluctuated only fractionally in the South Atlantic,
East South Central, West South Central, and Pacific areas. In
each of these regions the prices changed only once or twice during the
5-year period under consideration, and then by only 1 or 2 percent.
The index of retail prices in the Rocky Mountain area, contrary to
the general trend, changed frequently from 1935 to September 1939,
when this survey was begun. The trend was consistently downward
from March 1935, with only a small rise in January and February
1937; the index which was 105 in 1935 declined to 98 in May 1939, and
rose to 100 in June 1939.
Table 6. — Insulation board
[Typical wholesale and retail prices for selected cities, September 1939]
Prices
Region and city
Prices
Region and city
Whole-
sale
Retail
Whole-
sale
Retail
EKGION I. NEW ENGLAND
A. Portland, Maine
$33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33 00
33.00
33.00
$45.00
40.00
45.00
45.00
45.00
48.00
41.00
45.00
42.00
45.00
48.00
45.00
42.00
45.00
49.50
50.00
47.50
38.70
49.50
45.00
45.00
45.00
50.00
45.00
1
iJEC ON V. SOUTH ATLANTIC— COH.
F. Charlotte, N. C .
$33.00
33.00
33.00
33 00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33,00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
33.00
$45.00
B. Manchester, N. H
G. Charleston, S. C
42.00
C. Burlington, Vt
H. Atlanta, Oa ..
45.50
D. Boston, Ma-ss
I. Miami, Fla .
50.00
E. Providence, R. I
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky...
F. Hartford, Conn
EEGION n. MIDDLE ATLANTIC
46.00
B. Memphis, Tenn..
45.00
A. New York, N. Y....
C. Birmingham, Ala ..
50.00
B. Trenton, N. J
D. Jackson, Miss
47 50
C. Philadelphia, Pa...
REGION VII. WEST SOUTH CENTRAL
A. Little Rock, Ark.
REGION m. EAST NORTH CENTRAL
45.00
A. Cleveland, Ohio .
B. Oklahoma City, Okla..
C. Austin, Tex.. .
45 00
B. Detroit, Mich
52.50
C. Indianapolis, Ind
D. Houston, Tex
49 50
E. Milwaukee, Wis
E. New Orleans, La
46.00
REGION IV. WEST NORTH CENTRAL
A. Minneapolis, Minn
REGION Vni. ROCKY MOUNTAIN
A. Butte, Mont....
62.25
B. Fargo, N. Dak .
B. Boise, Idaho
C. Cheyenne, Wyo .
50.00
0. Sioux Falls. S. Dak..
47.50
D. Des Moines, Iowa
D. Denver, Colo
48.45
E. Omaha, Nebr
E. Salt Lake City, Utah
F. Reno, Nlv
50.05
F. Wichita, Kans.
45.00
0. St. Louis, Mo
O. Phoenix, Ariz
46.00
REGION V. SOUTH ATLANTIC
A. Wilmington, Del... »
B. Baltimore, Md
H. Albuquerqu; , N. Mex
REGION IX. PACinC
A. Seattle, Wash
46.50
50 00
D. Charle.<;ton. W. Va
B. Portland, Oreg .
48.00
E. Richmond, Va
C. Los Angeles, Calif
46.50
Specifications: Board, building, insulation, standard H-inch by 48 inches, standard lengths, per M
square feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination
Retail: Dealer to contractor, delivered to job site, city.
36
CONCENTRATION OF ECONOMIC POWER
Table 7. — Insulation board
[Wholesale and retail price indexes — July-September 1939=100.0]
COMPOSITE UNITED STATES AVERAGE
Year and month
1935
January
February
March
April- -
May
June
July,.
August
September
October
November
December
1936
January
February
March
April
May
June.-
July
August
September..
October
November
December
1937
January
February
March
April.
May
Index
Whole-
sale
Retail
100.0
99.2
100.0
99.2
100.0
99.3
100.0
99.3
100.0
99.3
100.0
99.3
100.0
99.3
100.0
99.3
93.3
99.3
93.3
99.3
Q3.3
99.3
86.7
99.3
90.0
99.0
93.3
99.0
93.3
99.0
100.0
99.0
100,0
99.4
100.0
99.4
100.0
99.4
100.0
99.4
100.0
99.0
100.0
99.0
100.0
99.0
100.0
99.1
100.0
99.0
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September.
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
99.1
99.1
99.1
99.1
99.1
99.1
99.2
99.9
99.9
99.8
99.9
99.9
99.7
99.6
99.9
99.9
100.0
100.0
100.0
100.0
Specification: Board, building, insulation, standard J^-inch by 48 inches, standard lengths,
square feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
per M
CONCENTRATION OF ECONOMIC POWER
37
Table 8. — Insulation board
f Wholesale and retail price indexes— July-September 1939 = 100.0]
EEOION I. NEW ENGLAND
Year and month
1935
January
February
March.
April
May
June
July -.
August I
September
October.
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May i...
Index
Whole-
sale
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
93.3
100.0
93.3
100.0
93.3
100.0
86.7
100.0
90.0
100.0
93.3
100.0
93.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.6
100.0
99.6
100.0
99.6
100.0
99.6
100.0
99.6
Year and month
1937— Continued
June
July
August
September.
October
November
December
1938
January
February
March...
April
May
June
July
August
September
October
November. .■
December
1939
January
February
March
April
May...
June
July
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
99.
99.4
99.4
99.4
99.4
99.4
99.4
99.4
99.4
99.4
99.4
99.4
99.4
100.0
100.0
100.0
100.0
IOC 0
100.0
100.0
100.0
100.0
Specification: Board, building, insulation, standard J^-inch by 48 inches, standard lengths, per M
square feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
38
CONCENTRATION OF ECONOMIC POWER
Table 9. — Insulation board
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU
May ..^.
June
July
Aucrust
September
October
November
December
1936
January
February
March
April
May.;
June
July
Au?a«!t_
September...
October
November
Dec<<mber
1937
January
February.. _..
March
April
May
Index
Whole-
sale
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
93.3
100.0
93.3
100.0
93.3
100.0
86.7
100.0
90.0
100.0
93.3
100.0
93.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100 0
100.0
100.0
100 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June...
July
August
September
October
November
December
1938
January _
February
March
April..
May
June
July...
August
September .
October
November
December
1939
January
February
Mart,',.
April..
May
June
July..
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
lOO.O
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100,0
100.0
100.0
Specification: Board, building, insulation, standard H-inch by 48 inches, standard lengths, per M
square feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
39
Table 10. — Insulation board
REGION III. EAST NORTH CENTRAL
(Wholesale and retail price indexes July-September 1939=100.0]
Year and month
1935
January
February.
March...
April
May.-
June
July...
August
September
October
November
December
1936
January
February
March
.\pril -
May...
June
July..
August
September
October
November
December
1937
January
February
March
April.
May.
Index
Whole-
sale
Retail
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
93.3
92.5
93.3
92.5
93.3
92.5
86.7
92.5
90.0
92.5
93.3
92.5
93.3
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
92.5
100.0
')2.5
100.0
93.1
100.0
93.1
100.0
93.1
100.0
93.1
100.0
93.1
100.0
93.1
Year and month
1937— Continued
June
July
August
September
October .
November
December
1938
January
February
March
April
May
June..
July
August
September
October
November
December
1939
January
February
March
April
May...
June
July
August...
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
93.1
93.1
93.1
93.1
93.1
93.1
93.8
98.0
98.0
98
99.7
99.7
99.7
99.7
99.7
99.7
99.7
100.2
100 2
Specification: Board, building, insulation, standard H-inch by 48 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
40
CONCENTRATION OF ECONOMIC POWER
Table 11. — Insulation board
REGION IV— WEST NORTH CENTRAL
[Wholesale and retail prce indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU-
May
Jime. —
July
August
September
October
November
December
1936
January
February
March
AprU :
May
June.
July
August
September
October
November
December.-
1937
January
February.. -i
March
April-.
May
June ,
Index
Whole-
sale
Retail
100.0
99.4
100.0
99.4
100.0
99.4
100.0
99.4
100.0
99.4
100. 0
99.4
100.0
99.4
100.0
99.4
93.3
99.4
93.3
99.4
93.3
99.4
86.7
99.4
90.0
98.0
93.3
98.0
93.3
98.0
100.0
98.0
100.0
98.5
100.0
98.6
100.0
98.6
100.0
98.5
100.0
98.5
100.0
98.6
100.0
98.5
100.0
98.6
100.0
98.5
100.0
98.5
100.0
98.5
100.0
98.5
100.0
98.5
100.0
98.5
Year and month
1937— Continued
July. _..:
August
September
October
November
December
1938
January.
February
March.-.-
April
May
June
July-
August
September
October
November
December.
1939
January
February
March
AprU
May
June
July- .
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
99.4
99.4
99.4
99.4
•99.4
99.4
99.3
99.3
99.3
99.3
99.3
99.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Board, buUding insulation, standard H-inch by 48 inches, standard lengths, per M !
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
RetaU: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
41
Table 12.— Insulation hoard
REGION V— SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March
April--
May
June
July
August-- --
September
October
November .
December -..
1936
January
February
March.-
April
May
June.-
July-
August -.
September
October
November--
December
1937
January
February
March
April -
May
June
Index
Whole-
sale
Retail
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
93.3
101.9
93.3
101.9
93.3
101.9
86.7
101.9
90.0
100.0
93.3
100.0
93.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
July —
August -
September
October -
November
December
1938
January
February
March -
April
May
June
July -
August-
September
October
November
December
1939
January..-
February
March--
Apwil -.-,
May -..
June
July -- --
August
September - — --
Whole-
sale
Index
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Board, building, insulation, standard H-inch by 18 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination
Retail: Dealer to contractor, delivered to job site, city.
42
CONCENTRATION OF ECONOMIC POWER
Table 13.' — Insulation board
REGION VI— EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May_ -
June
July.:
August
September -..
October
November
December
1936
January
February
March
April -.
May _
June
July
August
September
October
November
December
1937
January
February
March
April.-
May.- -
Index
Whole-
sale
Retail
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
93.3
100.9
93.3
100.9
93.3
100.9
86.7
100.9
90.0
100.9
93.3
100.9
93.3
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
100.0
100.9
Year and month
1937— Continued
June
July..
August
September
October
November
December
1938
January...
February
March
April
May
June
July
August.
September
October
November^
December
1939
January
February
March
AprU
May
June ..
July
August
September
Index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Board, building insulation, standard ^^-inch by 48 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. r. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCJENTRATrON OF EOONOMIC POWER
43
Table 14.' — Insulation board
REGION VII— WEST SOUTH CENTRAL
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June -
July -
August
September
October
November.
December
1936
January
February
March
April-w-
May.
June
July
August
September—
October
November
December
1937
January
February
March
\pril
May.. -.
Index
Whole-
sale
Retail .
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
93.3
101.0
93.3
101.0
93.3
101.0
86.7
101.0
90.0
101.0
93.3
101.0
93.3
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
100.0
101.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
AprU
May..
June
July
Augxist
September
October
November
December
1939
January —
February
March
April
May
June
July
August.
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Board, building, insulation, standard i^-inch by 48 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
44
CONCENTRATION OF ECONOMIC POWER
Table 15. — Insulation board
REGION VIII.— ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February -..
March
April
May
June - --
July
August . .,
Septemb^
October -
NovemTser
December.
1936
January
February
March
AprU
May - --
June - -.
July
August
September.—
October.--
November
December -.
1937
January... -.
February -..
March
April --
Index
Whole-
sale
Retail
100.0
102.4
100.0
102.4
100.0
105.2
100.0
105.2
100.0
105.2
100.0
105.2
100.0
105.2
100.0
105.2
93.3
105.2
93.3
105.2
93.3
105.2
86.7
105.2
90.0
104.3
93.3
104.3
93.3
-04.3
100.0
104.3
100.0
103.1
100.0
103.1
100. 0.
103.1
100.0
103.1
100.0
101.9
100.0
101.9
100.0
101.9
100.0
101.9
100.0
102.0
100.0
102.7
100.0
102. 7
100.0
102.2
Year and month
1937— Continued
May
June
July.--
August
September -
October
November
December-..
193b
January
February
March
April
May
June
July.
August
September
October -..
November.
December
1939
January..- .--
February-
March
April.
May
June -
July---
August
September.-
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
102.2
102.2
102.2
102.2
101.5
101.5
101.5
101.5
101.5
100.6
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
100.0
100.0
100.0
100.0
Specifications: Board, building, insulation, standard ^-incb by 48 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city
CONCENTRATION OF ECONOMIC POWER
45
Table 16. — Insulation board
REGION IX.-PACIFIO
(Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March
April.
May
June
July...
August ,
Septemb-31..
October ,
November
December
1936
January
February
March
April.
May
June..
July.
Augusf ,
Septen ber ,
October... ,
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
93.3
100.0
93.3
100.0
93.3
100.0
86.7
100.0
90.0
100.0
93.3
100.0
93.3
100.0
100. C
100.0
100.0
103.6
100 0
103.6
100.0
103.6
100.0
103.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100,0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April -
May...
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
J.ily
August.
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Board, building, insulation, standard J^-inch by 48 inches, standard lengths, per M square
feet.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. ears destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER IV
PLASTER
DESCRIPTION OF THE INDUSTRY
In 1937 the value of products of the gypsum industry was $39,000,-
000. Plaster was the most important product with a value in that
year of $16,500,000, representing 38 percent of the total.'
Plaster has many specialized uses and hence numerous types are
manufactured. Some of the more important types are neat, fibered
and unfibered, sanded, molding, prepared finish, and insulating. The
greatest demand, however, is for the neat, fibered and unfibered prod-
uct which is used as basecoat in wall construction. More than 70
percent of the total value of all gypsum plaster produced in 1937 was
of the neat type. This product is the one selected for study in this
survey. According to members of the industry, its price trend is
representative of that for the industry.
Relatively few companies are engaged in the manufacture of plaster.
The Department of Commerce reports that in 1937 85 percent of the
value of the product was manufactured by the four leading com-
panies. Approximately 20 other companies divide the Remainder of
the production.
The manufacturing plants are widely scattered over the country.
In 1937, active calcining plants were distributed as follows: Eight in
New York, five each in Iowa and Michigan, four in Texas, three each
in Utah and California, and two each in Colorado, Kansas, Montana,
New Jersey, Ohio, Oklahoma, and Virginia. One plant is located in
each of 12 other States.^
Three large firms are in an outstanding position ui the industry.
These firms make, in addition to plaster, other related building
materials, wallboard and lath. The manufacturing of the latter
two involves the use of patented processes which are owned and con-
trolled by the larger concerns.
PRICE STRUCTURE
Gypsum plaster is generally marketed under a freight equalization
system, according to several leading members of the industry. It was
impossible in the course of this study to determine whether the practice
constituted a basing-point system in any specific locality. Prices
at the factory with the addition of freight, determine the dehvered
price at every destination within the area. There is generally a
uniformity of prices at any given destination, regardless of point of
origin of the shipment. On shipments from points farther from des-
tination than the controlling factory point for that area the shipper
' Bureau of Mines: Minerals Yearbook, 1939, page 1182.
> Source: Minerals Yearbook, 1938, p. 1086.
47
48 CONCENTRATION OF ECONOMIC POWER
absorbs the difference in freight costs. Several large cities on the
eastern seaboard, however, exceptions to the freight equalization
system, are classed as delivered-price areas, wher-^ plant prices and
an arbitrary average freight rate, based on truck freight, are used in
setting the price.
The differences in plant prices are relatively small. In November
1939 the prices at 17 factory points between the Appalachians and the
Rockies were either $10 or $11 per ton. Points in Ohio and Micliigan
were lowest for this area, and those from Indiana west were higher.
The prices of plaster have changed infrequently in recent years, but
dehvered prices in most areas have been affected several times by
changes in freight rates.
Plaster is usually sold in 100-pound sacks. The manufa<"turer
ordinarily sells in carlo ts to dealers, delivered at destinatioi.. As
previously stated, the delivered price is the lowest sum of any applica-
ble plant price plus freight from that point to destination, and is
independent of the actual point of origin of shipment. The price to
the buyers is quoted per ton, in carlots, f. o. b. cars at the nearest
siding to buyer's warehouse. The shipper does not pay the cost of
unloading, trucking charges, nor delivery to any job site. Sales are
made to any legitimate building-material dealer, who has facilities for
storage and is regularly engaged in supplying building materials to
contractors or over-the-counter customers.
Channels of Distribution.
Shipments of plaster range from 12 to 40 tons minimum and freight
rates generally decrease as the size of shipment is increased. The
size of car varies according to the area. The great majority of plaster
sales goes from manufacturer or manufacturer's branch office to a
building-material dealer who sells both to contractors and to the over-
the-counter trade.
Discounts.
The practice of allowing trade discoimts, common to many indus-
tries, does not apply to the plaster industry. None of the manufac-
turers interviewed during this survey reported a trade discount. The
manufacturers do not sell from a consumer's price list. Prices are
quoted to the retail distributor, who sells to the contractor, and to the
larger industrial consumer. The price quoted to the dealer is f. o. b.
cars, destination, subject to a cash discount if paid within a specified
time. This time limit may be 10 days from date of delivery, or, for
some companies, by the 10th proximo. The amoimt of the discount
is usually 2 percent, or for certain manufacturers, 25 cents per ton.
If the invoice is not paid within the cash discount period, payment of
the net amount is usually required within either 30 or 60 days.
Specifications.
The wholesale price of gypsum plaster used in this survey is that
from manufacturer to dealer, per ton, in bags, carlots, f. o. b. cars,
at destination. The retail price is from dealei to contractor engaged
in residential construction, per ton, in bags, delivered to job site,
city. The dealer unloads the plaster from the car, provides drayage
to his warehouse and storage until resold, and loads and delivers it
to the site of construction where it is to be used. The dealer usually
CONCENTRATION OF ECONOMIC POWER 49
allows a cash discount to the contractor, if paid within 10 days or by
the 10th proximo, with net payment in 30 or 60 days.
PRICE LEVELS AND TRENDS
Geographical Differences in Prices and Spreads.
The geographical variations of the wholesale price of plaster are
fairly large. This is due to small differences in plant prices and to
substantial differences in freight costs. The geographical variations
in wholesale delivered prices for plaster follow closely the pattern for
other building materials in which transportation costs are an impor-
tant element of price. During September 1939 the lowest typical
delivered price was $8.50 per ton for New York City, where an "arbi-
trary" had been established, and the highest was $17.40 per ton in
Albuquerque, N. Mex., and New Orleans, La., with a spread between
the two extremes of $8.90 or about 105 percent of the low price. The
average of typical prices of cities, by regions, was lowest for the Middle
Atlantic, with $9.17, and highest for the West South Central, with
$16.48 as the average. The spread between the two regions was
$7.31, or about 80 percent of the low price. Probably the most
important factor in the geographical variation is the location of des-
tination in regard to the controlling factory point for that area. The
country-wide differences in delivered prices are shown in the following
distribution of cities and in chart II. The high degree of relationship
between wholesale and retail price levels shown on the chart indicates
the extent to which transportation costs are transferred to the
consumer.
Number of cities
Price
Number of cities
Price
Whole-
sale
Retail
Whole-
sale
Retail
$8 to $8.99 _.._
1
5
4
1
6
9
5
6
$16 to $16.99.. -. . .
5
6
4
$9 to $9.99
$17 to $17.99
10
$10 to $10.99
1
2
1
2
3
1
$18 to $18.99 .
10
$11 to $11.99...
$19 to $19.99
2
$12 to $12.99
.$20 to $20.99
1
$13 to $1.3.99
$21 to $21.99
6
$14 to $14.99
$22 to $22.99
5
$15 to $15.99 ...,
(See table 17.)
Retail prices vary in approximately the same geographical pattern
as do the wholesale prices. The lowest regional average of typical
prices, again, was for the Middle Atlantic area, and the highest was
for the West South Central; the respective figures were $11.33 and $21.
The spread between the two regions was $9.67, or 85 percent of the
low, as compared to $7.31, or 80 percent, for wholesale. The lowest
typical price for a city was $10 in the Middle Atlantic region, and the
highest was $22.50 per ton for a city in the East South Central area.
The spread at retail was $12.50 from low to high, or 125 percent of
the low.
50
CONCENTRATION OF ECONOMIC POWER
Chabt I.I
PLASTER
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES RETAIL PRICES
*23
Z5
60
•
7C 7A 7Ea8H 1
22
S<
70 •
• •98
1
6B 9A
21
20
5F
{
C 4C
19
9G«
6A
•
88
18
8/ 40 *6tf5Dj 4F«
ise
3C
4A 5
H
7B
•
17
IC 3E
■ • • — • «
9C
6C
'"SO a 8E
16
lA
3A
5I»
4E
15
1
E
*^
38
•
14
13
12
V
SB
IF
•
•
IB
.20
2B
•
II
10
10
2A
20
It 12 13 14 15
WHOLESALE PRICES
16 17 18
OS BUREAU OF LABOR STATISTICS
CONCENTRATION OF ECONOMIC POWER
51
The table below shows the average or typical prices, for cities in
each region at wholesale and retail:
Region
Price
Wholesale Retail
Difterence
Amount Percent
I. New England
II. Middle Atlantic
III. East North Central...
IV. west North Central..
V. South Atlantic
VI. East South Central.,
vn. West South Central -
vni. Rocky Mountain
IX. Pacific --
United States totaL
$10.30
9.17
12.49
14.40
12.64
15.75
16.48
14.51
15.47
$14. 38
11.33
16.33
18.30
16.96
19.75
21.00
18.81
19.83
$4.08
2.16
3.84
3.90
4.32
4.00
4.52
4.30
4.36
39.6
23.6
30.7
27.1
34.2
25.4
27.4
29.6
28.2
13.58
17.57
3.99
29.4
The average of wholesale and retail prices of plaster in all the cities
surveyed was $13.58 and $17.57, respectively. This amounts to a
29.4 percent spread. The differences between wholesale and retail
prices show relatively little variation when averaged by geographical
areas. The only exception, the small spread for the Middle Atlantic
area, may be due to competition in the two verj lai^e cities included,
with only one medium-sized city. Although similarity of spreads in
most regions seems to reflect comparatively uniform costs of mer-
chandising plaster throughout the Nation, actually there is con-
siderable difference in the spreads for the individual cities. For
example, while the East South Central area showed an average spread
of $4, the difference between wholesale and retail prices in one city in
that region was only $1.20 per ton, or 8 percent. In contrast, the
difference amounted to more than 50 percent in a New England city.
However, as shown in the following distribution, the spread ranged
between 25 and 40 percent for more than half the cities surveyed.
Diflerence between wholesale and retail
prices in percent
Number
of cities
Diflerence between wholesale and retail
prices in percent
Number
of cities
0to4.9
0
2
1
6
3
9
30 to 34.9
11
5 to 9 9
35 to 39.9
9
10 to 14 9
40 to 44.9 -
4
15 to 19.9
45 to 49.9
1
20 to 24.9
50 to 54.9
1
25 to 29 9
55 to 59.9
1
Trend of Prices. (See chart III and tables 18 to 27.)
The wholesale price of plaster has remained relatively unchanged for
the period since 1935, except in the East South Central area, where
prices increased about 5 percent between 1937 and September 1939,
and in the Pacific States, where a 5-percent decrease occurred in
May, 1938. The fluctuations in the wholesale level were less than
2 percent for all regions except the two noted above.
In general, the level of retail prices followed that of wholesale with
relatively small fluctuations as shown by - the Bureau's indexes of
wholesale and retail prices based on the averu'^'e in the third quarter
of 1939 equals 100.0. In the New England . rea the retail index
declined by a series of small decreases throughout the period from
114 in January 1935 to 100 in ScDtember 1939. or about 12 percent.
52
CONCENTRATION OF ECONOMIC POWER
In the Middle Atlantic and East South Central States the indexes
were unchanged at about 108 until 1938 and 1939, when decreases
were effective that lowered the level in September 1939 to 94 percent
of the base period average for the former and 101 for the latter.
The major change in retail prices in the East North Central area
occurred in April 1938 when the index increased from 92 to 99.
Prices in other regions decUned by a series of small changes reaching
their lowest levels in 1938.
This analysis of price trends is not complete, since wholesale price
records were fragmentary in the New England and Middle Atlantic
States, and not wholly complete in the East South Central and West
South Central areas.
Table 17. — Plaster
[Typical wholesale and retail prices for selected cities, September 1939]
Prices
Region and city
Prices
Region and city
Whole-
sale
Retail
Whole-
sale
Retail
REGION I. NEW ENGLAND
A. Portland, Maine
$10.20
10.40
12.20
9.50
10.00
9.50
8.50
9.50
9.50
12.60
11.50
13.80
12.80
14.60
17.00
13.80
13.00
13.40
15.00
14.00
9.75
10.20
14.00
12.00
$16.00
13.75
17.00
11.00
15.00
13.50
10.00
11.50
12.50
16.00
14.50
18.00
17.00
17.50
21.60
19.00
18.00
16.00
18.00
18.00
14.00
14.00
18.00
17.00
REGION V. SOUTH ATLANTIC— COn.
F. Charlotte, N. C .
14.60
13.80
15.00
13.80
14.20
16.20
15.80
16.80
16.80
15.80
16.00
16.40
17.40
15.20
17.00
13.00
13.00
13.00
12.50
15.00
17.40
17.00
17.00
12.40
20 00
B. Manchester, N. H
G. Charleston, S. C
18.75
C. Burlington, Vt
H. Atlanta, Ga
17.50
D. Boston, Mass
I. Miami, Fla
16.40
E. Providence, R. I . .
REGION Vl. EAST SOUTH CENTRAL
A. Louisville, Ky. - _ ...
F. Hartford, Conn
REGION II. MIDDLE ATLANTIC
18.50
B. Memphis, Tenn
21.00
A. New York, N. Y
0. Birmingham, Ala _ .
17.00
B. Trenton, N. J -
D. Jackson, Miss..
22.50
C. Philadelphia, Pa . -
REGION VII. WEST SOUTH CENTRAL
A. Little Rock, Ark
KEGION in. EAST NORTH CENTRA!,
22.00
A. Cleveland, Ohio
B. Oklahoma City, Okla
17.50
B. Detroit, Mich
C. Austin, Tex . -
22.00
C. Indianapolis, Ind
E. Milwaukee, Wis - -
D. Houston, Tex
21.50
E. New Orleans, La
22.00
REGION IV. WEST NORTH CENTRAL
A. Minneapolis, Minn
REGION VIU. ROCKY MOUNTAIN
A. Butte, Mont
21.00
B. Fargo, N. Dak .
B. Boise, Idaho
18.50
C. Sioux Falls, S. Dak
C. Cheyenne, Wyo
19.00
D. Denver, Col
17.00
E. Omaha, Nebr -.-
E. Salt Lake City, Utah..
17.00
F. Wichita, Kans
F. Reno, Nev
Q. Phoenix, Ariz .
18.00
Q. St. Louis, Mo
18.00
REGION V. SOUTH ATLANTIC
A , Wilmington, D«l
H. Albuquerque, N. Mex
REGION IX. PACIFIC
A. Seattle, Wash
22.00
B. Baltimore, Md
21.00
D. Charleston, W. Va
B. Portland, Greg..
21.50
E. Richmond, Va
C. Los Angeles, Calif
17.00
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor,' delivered to job site, city.
CONOENTRATION OF ECONOMIC POWER
53
Chabt III
PLASTER
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 = 100
REGION JC - SOUTH ATLANTIC
WMOLtSALt^
REGION IL- MIDDLE ATLANTIC
REGION 3in - EAST NORTH CENTRAL
REGION H - WEST NORTH CENTRAL
REGION I
- NEW
ENGLAND .
-w4_
— 1
^-RETAIL
WHOl.
EMLE/
"~1.
zcx.
V-
WLESALE
WH
)IX»AL£
"V
n '
>P"
-
\
■ CTAILv^
1
.-o.es..
1935 1936 1937 1936 1939 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
"^
RETAIL
1 ~
°\^_^
W^SALE^
REGION
3X- EAST SOUTH CENTRAL
RETAlL-^l^
—
_c:
3LESALE
REGION
3IE- WEST SOUTH CENTRAL
RETAI
LESALE"^
REGION snr
- ROCKY MOUNTAIN
KJ^'
t
"^^RETAIL
.-OL
niTT"
REGION m - PACIFIC
t t /="=
_=-=x-.
■^=HrLE»LE^ i 1 ,
"-T^
1935 1936 1937 1938 1939 1940 1941
54
CONCENTRATION OF ECONOMIC POWER
Table 18— Plaster
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retaU price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU
May
June
July
August.
September
October
November
December
1936
January
February
March
April..
May
June
July...
August
September
October.-
November
December
1937
January
February
March
April
May
Index
Whole-
sale
RetaU
100.3
105.2
100.3
105.3
100.3
105.3
101.5
105.3
101.5
105.3
101.5
105.3
101.5
104.8
101.5
104.6
101.4
104.3
101.4
104.3
101.4
104.7
101.4
104.7
100.9
104.8
100.9
104.8
100.9
104.7
100.9
104.7
100.9
104.7
100.9
104.0
100.9
104.4
100.9
104.2
100.9
104.2
100.9
104.2
100.9
104.2
100.9
104.2
100.6
104. 1
100.6
104.0
100.6
104.0
100.6
104.0
100.6
104.0
Year and month
1937— Continued
June
July
August
September..
October
November
December
1938
January
February
March
April
May
June
July
August
September.
October
November
December _
1939
January
February
March
April
May
June
July
August..
September.
Index
100.5
100.5
100.5
100.5
100.5
100.7
100.7
100.8
100.9
100.7
101.6
99.4
99.4
99.6
99.6
99.7
99.7
99.6
99.6
99.6
99.8
100.0
100.0
100.0
100.0
Retail
104.1
104.1
104.0
104.0
104.0
104.0
104.0
103.8
103.5
103.5
104.0
104.0
103.6
103.0
103.0
101.0
101.0
101.0
101.0
101.1
100.9
100.9
101.0
101.0
101.0
100.9
101.5
97.7
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destinatioL.
Retail: Dealer to contractor, delivered to job site, city.
CONOENTRATION OF EOONOMIC POWER
55
Table 19,— Plaster
REGION I. NEW ENGLAND
[Wholesale and retail price inde. es— July-September 1939=100.0]
Index
Year and month
Index
Year and month
•Whole-
Bale
RetaU
Whole-
sale
Retail
1935
January ..
113. «
113.6
113.6
113.6
112.7
112.7
112. 7
112.7
112. 7
112.7
112.7
112.7
110.2
110.2
110.2
110.2
110.2
109.8
109.8
10^.8
109.8
109.8
109.8
109.8
108.7
108.7
108.7
108.7
108.7
1937— Continued
June
108.7
February
July
108.7
March .. -
August
108.7
Aorll
September
108.7
May
October ..
108.7
June -
November
108.7
July
December..
108 7
August
1938
January
September
October ..
108.0
February
108.0
December
March
108.0
April
108.0
1936
May
108.0
January.--
June
108.0
February .
July
108.0
March
August-
108.0
April
September
108.0
May . -- .
Octol>er
108.0
June
November
108.0
July
December. 1
108.0
August
1939
January
September
101.6
November...
February
101.6
December
March
101.6
April
101.6
1937
May
101.6
January
Jime
101.6
February .
July
100.0
March
August
100.0
April
September
100.0
100.0
May
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
56
GONOENTRATION OF ECONOMIC POWER
Table 20. — Plaster
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February-
March
April
May
June
July
August
September.
October
November-
December..
January
February...
March
AprU
May -.
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Whole-
Retail
08.1
08.1
08.1
08.1
i. 1
i. 1
'a
1.1
i. 1
.1
1.1
;. 1
.1
.1
08.1
08.1
Year and month
1937— Continued
June
July
August
September.
October
November
December
January
February...
March
April
May
June
July...
August
September.
October
November.
December,.
1938
January
February...
March
AprO
May
June.
July
August
September.
1939
Index
Whole-
sale
100.0
Retail
108.
108.
108.
108.
108.
108.
108.
107.3
107. 3
107.3
107.3
107.3
107.3
107.3
107.3
102.9
102.9
102.9
102.9
102.9
102.9
102.9
102.9
102.9
102.9
102.9
102.9
94.2
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job siie, city.
CONCENTRATION OF ECONOMIC POWER
57
TabI/"(!' 21. — Plaster
REGION HI. KAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 193'.' =100.0]
Year and month
January
February...
March
April
May
June -.
July
August
September.
October
November.
December..
January
February...
March
.\pril.
May
June
July...
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
100.0
100.0
100 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.7
99.7
99.7
99.7
99 7
Retail
95.3
95.3
95.3
95.3
95.3
95.3
91.7
90.8
90.8
90.8
93.2
93.2
96.5
96.5
96.5
96.5
96.5
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
Year and month
Specification: Plaster, neat, base "oh^, gyjjsum; per ton, in 100-poui.d paper bags.
Wholesale: In carlots, manu.&cturf.r to retail distiibutor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
Index
1937— Continued
June - -.
July
August
September
October
November.
December
1938
January
February
March
April
May
June
July
August
September
October .
November. .., .-.
December
1939
January
February .
March ',.'.: ,
April..
May
June ;....! .....
July
August...
September
Whole-
sale
99.7
99.7
99.7
99.7
99.7
99.7
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
92.7
92.7
92.7
92.7
92.7
92.7
92.7
94.4
91.8
91.8
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
100.1
100.1
100.1
100.1
58
CONCENTRATION OF ECONOMIC POWER
Table 22. — Planter
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939= 100.0]
Year and month
January
February-
March
April
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July.
August
September.
October
November.
December..
January..
February.
March
April
May
1035
1936
1937
Index
Whole-
sale
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
98.0
98.0
98.0
98.0
98.0
Retail
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
102.8
102.8
102.8
102.8
102.8
102.8
102.8
98.8
Year and month
1937— Continued
Jur.d. .
Jujy
August.
September
October
November
December...
1938
Januai7
February
March
April
May
June.
July -.
August
September
October
Novembei
December
1939
January
February
March
April
May
June .-
July...
August
September—
Index
Whole-
98.0
98.0
98.0
98.0
98.0
99.0
99.0
99.0
99.0
99.1
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.5
100.6
100.5
100.6
100.6
100.5
100.5
100.5
100.5
100.5
100.6
100.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Piaster, neac, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: In rarlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to oontractor, delivered to ]ob site, city.
CONCENTRATION OF ECONOMIC POWER
Table 23. — Plaster
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
59
Year and month
January
February...
March
April ■.
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
Retail
107.
107.
107.
107.
107.
107.
107.
107.
105.
105.
105.
105.
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
103.6
103.6
103.6
103.6
103.6
Year and month
1937— Continued
June.
July
August
September
October
November
December
January
February...
March
April
May
June
July
August
September.
October
November.
December..
1938
January
February..
March
April
May
June -
July.
August
September.
1939
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
Retail
103.6
103.6
103.4
103.4
103.4
103.4
103.4
103.1
103.1
103.1
103.1
103.1
100.2
100.2
100.2
99.2
99.2
99.2
99.2
100.1
100.1
100.1
100.1
100.1
100.0
100.0
100.0
100.0
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b.-cars destination.
Retail: Dealer to contractor, deUvered to job site, city.
275852 — il— No. 33-
60
CONCENTRATION OF ECONOMIC POWER
Table 2A.— Plaster
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July
August
September.
October
November.
December. .
January
February...
March
April
May
June
July.
August
September.
October
November.
December.
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
Retail
Year and month
1937— Continued
June
July
August
September
October
November
December
January
February...
March
April
May
June...
July
August
September.
October
November.
December..
January
February..
March
April
May
June
July.
August
September.
1938
1939
Index
Whole-
sale
94.3
94.3
94.3
94.3
94.3
94.3
94.3
94.3
94.3
94.3
94.3
94.3
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
100.0
100.0
100.0
100.0
100.0
Retai.
108.8
108.8
108.8
108.8
108.8
108.8
108.8
108.8
102.2
102.2
102.2
102.2
102.2
99.5
99.5
101.0
Specification: Plaster, neat, base coat, gypsum; per ton, in 100 pound paper bags.
Wholesale: In carlots, manufacturer to retailer distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
61
Table 25.— Plaster
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July
August
September.
October
November.
December.
January. .
February.
March
.^.pril
May
1935
1936
Index
Whole-
sale
RetaU
102.3
102.3
103.3
102.3
102.3
102.3
102. 3
102.3
102.3
102.3
102.3
102.3
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.7
99.7
99.7
99.7
99.7
Year and month
1937— Continued
June
July. -
August
September
October.
November
December
January
February...
March
April
May
June
July
August
September.
October
November.
December.
January
February...
March
April
May
June...
July
August
September.
1938
1939
Index
Whole-
98.6
98.6
98.6
98.6
98.6
98.6
98.6
100.0
100.0
100.0
100.0
Retail
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Plaster, neat, base coat, gypsum; per ton, in 100 pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
62
GONGENTRATION OP ECONOMIC POWER
Table 26.— Plaster
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price Indexes— July-September 1939=100.0]
Year and month
1935
January
February ..-
March
April _
May_
June.-
July
August-
September
October
November
December
1936
January
February
March
April ---
May
June
July....
August
September
October..
November
December
1937
January
February
March
April
May
June.
Index
Whole-
sale
Retail
99.3
103.8
99.3
106.1
99.3
106.1
99.5
106.1
99.8
106.1
99.8
106.1
99.8
106.1
99.8
106.1
99.3
106.1
99.3
106.1
99.3
106.1
98.7
106.1
98.4
106.2
98.4
106.2
98.6
106.0
98.6
106.0
98.6
106.0
98.6
101.6
98.6
101.6
98.6
101.6
98,6
101.3
98.6
101.3
98.6
101.3
98.6
101.6
98.6
101.6
98.4
99.2
98.4
99.2
98.4
99.2
98.4
99.2
98.0
99.2
Year and month
1937— Continued
July
August
September
October
November
December
1938
January
February
March..
April
May
June
July
August --.
September
October
November _.
December
1939
January
February
March..
April
May
June.
July
August
September
Index
Whole-
sale
98.0
98.0
98.0
98.0
98.2
98.2
98.7
99.5
99.8
100.0
100.0
100.1
100.1
100.1
100.1
100.4
100. 4
100.4
100.4
100.4
100.4
100.4
Retail
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99:2
99.2
97.3
97.2
97.2
96.6
96.6
96.6
96.9
96.9
96.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Plaster, neat, base coat, gypsum; per ton, in 100 pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF EOONOMIC POWER
Table 21.— Plaster
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
63
Year and month
1935
January
February
March
April
May ,
June
July
August
September.
October
Xoveraber
December
1936
January
February
March
April.-
May
June
July
August-
September
October-.
November
December
1937
January
February-
March..
April
May-
June
Index
Whole-
sale
Retail
104.9
104.3
104.9
104,3
104.9
104. 3
lOfi. 3
104.3
106.3
104.3
]06. 3
104.3
106.3
104.3
106. 3
104.3
106. 3
104.3
106.3
104.3
106. 3
104.3
106. 3
104.3
104.9
104.3
104.9
104.3
104.9
104.3
104.9
104.3
104.9
104.3
104.9
104.3
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107. 1
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107.1
104.9
107.1
Year and month
1937— Continued
July
August
September.
October
November..
December
1938
January
February
March
April-..
May.
June--
July....
.\ugust--- ,
September..
October
rc 0 vember .,
December
1939
January
February
March
April
May
June
July .
August
September
Index
Whole-
sale
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
106.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
107.1
107.1
107.1
107.1
107.1
107.1
106.4
106.4
106.4
101.3
101.3
101.3
96.3
96.3
96.3
96.3
96.3
96.3
96.6
96.6
96.6
96.6
96.6
96.6
96.6
101.7
101.7
Specification: Plaster, neat, base coat, gypsum; per ton, in 100 pound paper bags.
Wholesale: In carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER V
ASPHALT ROOFING
DESCRIPTION AND LOCATION OF THE INDUSTRY
The asphalt shingle and roofing industry includes the manufacturing
of asphalt roofing, rolls and shingles, saturated felts, and roof coatings
other than paint. The manufacturing processes involve the coating
of the base dry felt with asphalt, after which the felt is surfaced with
some mineral granule. Both roll roofing and asphalt shingles are
made in this manner but shingles are carried through another step
and cut either individually or in strips. The shmgle is shaped and
cut into either the hexagon or square butt type.
Roofing is sometimes patented, depending upon the nature of the
process involved and the shape. Some of these patents, many of
which cover items of primary importance, are controlled by the
Patent and Licensing Corporation; on such patents licensees must
secure the permission of and pay royalties to the corporation.
This industry expanded rapidly after the World War. The value
of its product increased from $76,000,000 in 1921 to $124,000,000 in
1925. Sales were maintained at this level in 1927 but by 1929 the
volume, aflFected by the depression in the construction industry, had
declined to $104,000,000 and by 1933 annual sales amounted to only
$45,000,000.
Shingles are sold both for new construction and for repairs and
modernization. Industry representatives estimate that 50 to 60
percent of sales are for replacement and repairs. Consequently,
although production of shingles is to some extent a function of the
demand for new building construction, the industry has an additional
market which protects it against depression troughs in new residential
building. However, recovery in housing is clearly reflected in roofing
sales; from 1933 to 1937 the value of production increased 130 per-
cent. The value of all asphalt roofing materials produced in 1937
was $103,000,000, and asphalt roofing of various types comprised more
than three-fourths of this total.
The number of plants primarily engaged in producing asphalt roofing
decreased from 140 in 1925 to 102 in 1929. There was a heavy mor-
tality during the 1929-33 depression, but from 1933 to 1937 m^ny
closed plants reopened and new plants were constructed, and in the
latter year the industry reported production from 111 units.
Asphalt roofing materials are produced in 26 States, but production
centers in the Great Lakes region. Seven States account for 83 per-
cent of the value of the industry's output and five of these — Illinois,
Ohio, Pennsylvania, New York, and Minnesota— bordering on the
Lakes, produce 55 percent of the total. Establislunents in New
Jersey and California manufacture 17 and 11 percent of the total,
respectively. Map I and the following table- indicate the geographical
distribution of the value of production.
65
QQ CONOENTRATION OF ECONOMIC POWER
Table 28. — Geographical distribution of production, 1937
State
Value of
product
Percent
of total
State
Value of
product
Percent
of total
$28, 746, 196
17, 191, 456
11,401,618
11, 207, 725
9, 385, 182
28
17
11
11
9
New York
$4, 534, 824
3, 253, 456
1,376,111
15,465,180
4
Minnesota
3
Missouri
1
Ohio
Other States (18) i
16
I Includes Alabama, Arkansas, Colorado, Connecticut, Georgia, Indiana, Kentucky, Louisiana, Mary-
land, Massachusetts, Michigan, Oregon, Tennessee, Utah, Vermont, Washington, West Virginia, and
Wisconsin. Census of Manufactures, 1937, Part I; Roofing, built-up and roll; asphalt shingles; roof
coatings other than paint; table 2, p. 1291.
The larger companies generally distribute their products on a
Nation-wide basis. Their factories are situated at strategic locations
in important consuming centers. According to the Department of
Commerce, 42 percent of the total output is produced by the four
largest companies.
PRICE STRUCTURE
Classification of Products.
The products of the industry are customarily divided into five
groups by the trade. Asphalt shingles and sidings, the manufacture
and sale of which are controlled by patents, are grouped under class A.
All the nonpatented asphalt shingles, sidings, roll roofing, cap sheet
roofings, nails and pyramid kaps comprise class B. Class C proaucts
are tarred and asphalt felts, sheathings, slater's felt, and threaded felt.
Insulating papers, sheathing papers, and deadening felts are grouped
under class D. The last group, class E, comprises the roof coatings
and plastic cements.
The product selected for this study is a patented class A item, the
12 by 36 inch, thick butt, strip shingle, which weighs 210 pounds per
square. It is a very popular product, representing an important
proportion of total sales of shingles. According to the industry,
the movement of prices for this item adequately reflects the trends
for the industry.
Distribution Policies.
In general the manufacturer accepts orders only from "distributor
buyers" who agree to wholesale his products and maintain adequate
inventories for that purpose. Inquiries and orders from general
consumers such as artisans, carpenters, builders, or general con-
tractors are customarily referred to the distnbutor. However, the
producer sells direct to the Federal Government, to large industrial
concerns, and to railroads in any quantity.
Pricing Practices }
Most manufacturers issue price lists for asphalt roofing materials.
These lists stipulate for each product an f. o. b. list price for 2 sets
of shipping points in the territory east of the Rocky Mountains;
group A points and group B points. These shipping points are,
in general, producing centers at which are located one or more manu-
facturers, although any single manufacturer may have plants only
' The following sections down to "Price Levels and Trends" are descriptive of general practices followed
by members of the industry and especially the larges companies. They are not necessarily the exact
practices of each individual company.
condentration of e(X)nomic power
67
68 CONCENTRATION OF ECONOMIC POWER
at a limited number of these points. For example, one leading pro-
ducer lists 8 group A points, all located in the South, and 44 group B
points in the Northeast and Middle West. For most class A and B
products, prices f. o. b. factory "B" points are lower than at factory
"A" points. However, on some class A ^nd B products and on all
class C, D, and E products, there is no difference between prices at
these two sets of factory points.
Price lists generally delimit "factory point zones" surrounding each
of these factory points. No charge is made for delivery within these
zones. On sales to points outside these zones, delivered prices are
arrived at by adding freight to the price at the factory point zone
which is nearest, freight-wise to the destination. In general, each
manufacturer will equalize freight to meet the offer of any more ad-
vantageously located competitor. For example, one manufacturer
announces the following policy in his price lists:
When necessary to meet competition we will equalize freight by invoicing
shipments at our published prices f. o. b. any one of our own or comp>etitive
factory points which, when our herein stipulated transportation charges from
that factory point to destination are added, will result in the lowest cost at
destination to the buyer.
Large companies, which operate on a national scale, issue price lists
for each major geographical area as estabhshed by each company. In
general, these divisional price lists diflFer only in the specific products
listed; apparently the sale of certain items is restricted to certain
sections of the country.
In addition to the price lists, some of the larger companies pubUsh
two merchandising plans, one for the sales area east of the Rocky
Mountains and the other for the Pacific region. These merchandising
plans present in detail the terms and conditions of sale.
Quantity Discounts.
The actual price for any quantity is derived by applying a schedule
of quantity discounts to the quoted list price. However, these dis-
counts and the method of delivery are so closely related that they will
be discussed jointly.
Reductions from list are progressive according to quantity and type
of delivery. Full box cars of roofing material shipped by rail are in-
voiced at 14 percent off list. Less than carload shipments by rail are
eligible for a discount of only 6 percent. Ten-ton truckload deliveries
are quoted at 10 percent off list. This last method of delivery is
becoming increasingly popular; according to one prominent manufac-
turer, more than 60 percent of the production of one of its plants is
delivered by company-owned trucks. Less than 10-ton truck deliv-
eries are quoted at the full list price with no discount. A 6 percent
discount from the published list price is given on all roofing purchases,
regardless of quantity, when picked up by the buyer.
Buyers classed as wholesalers by members of the industry are eligible
to receive a special wholesaler's compensation. This is a kind of
commission which has the effect of a trade discount to the distributor
who maintains stocks of roofing material and purchases in carload
quantities. On a square of roofing which wholesales at $4. 15 in factory
points the wholesaler's compensation is 27 cents, or 6}^ percent.
CHNCENTRATION OF ECONOMIC POWER QQ
Delivery.
On shipments within factory point zones referred to above, the
manufacturer usually invoices the buyer at the . published prices
applicable to the zone in which the point of destination is located and
absorbs all the transportation charges. In the case of stop-over cars ^
where all stop-over points and the final destination are within a factory
point zone, the stop-over charges are for the buyer's account at any
point where less than 20,000 pounds are unloaded.
On shipments to destinations outside of the factory pomt zones,
except in areas where the price has been established by a competitor,
the producer usually makes certain allowances on transportation costs.
Where goods are shipped in carlots by rail, the manufacturer charges
all-rail carlot freight rates less an allowance up to 9 cents per 100
pounds. On carlot shipments by water, or rail and water, the seller,
in lieu of allowing up to 9 cents per 100 pounds in the transportation
cost, absorbs all switching, wharfage, and transfer charges at the
point of shipment or at destination as provided .in the tariffs.
When materials are sold in quantities less than a carload, the seller
charges the less than carlot rate of freight equahzed with competitive
factory points. On 10-ton truck shipments in the company's own
or hired trucks, the buyer is charged the all-rail carlot rate of freight
less up to 9 cents per 100 pounds. The manufacturer frequently
refuses to make truck delivery to any point where the difference
between the truck rate and the carlot rail rate is excessive. On
shipments of less than 20,000 pounds deUvered by the company's
own or hired trucks, the seller equalizes the published less than carlot
rail rate of freight from shipping point to destination with the pub-
lished less than carlot rate from the factory point controlling price.
Transportation costs in excess of the pubUshed less than carlot rail
rate from shipping point are charged to the buyer. The manufac-
turer makes no allowance for transportation on pick-ups by customers'
trucks at factories or warehouses.
Method of Handling Orders.
Orders are accepted subject to being complete as to specifications,
prices, and terms, and for shipment at the convenience of the seller.
Back orders of materials which have been ordered for shipment in
part or total at a later date are permitted only from carlot shipments.
These orders are shipped at the same price and on the same terms as if
included in the original carlot order, except that in the event of an
advance in prices, back orders are subject to all provisions relating to
price advances the same as any other order.
If prices are increased the company usually reserves the right to
establish a period within which it will accept and ship orders at the
lower prices in effect immediately prior to the advance. In the case of
a price decline, unshipped orders on hand and shipments in transit
(as determined by date of the paid freight bill) at the time the re-
duction becomes effective, are invoiced at the reduced prices.
When trade buyers bid direct to the United States Government, or
to contractors for the purpose of enabling them to bid to the Govem-
• A stop-over car is a carload of rooflug materials contracted for by the purchaser for delivery at various
destinations. This type of shipment obviously involves a greater transportation charge from the origin to
the final destination than the straight through shipment between the same two points.
70
CONOENTRATION OF F.CONOMIC POWER
ment, the manufacturer protects them at prices in effect at the time
bids were filed, provided the trade buyers furnish a certified copy of
the Government award and contract.
Terms of Payment.
Roofing is generally sold on the basis of 2 percent cash 10th proximo,
net 30th proximo. The cash discount is allowed from the delivered
price when -freight is invoiced, or from the net f. o. b. factor}' price.
The seller usually agrees, at his option, to accept trade acceptances
with maturity dates averaging not more than 60 days from date of
invoice.
PRICE LEVELS AND TRENDS
Commodity Specification.
Consultation with members of the industry and other interested
parties indicated that the 12-inch thick butt strip shingle was a
popular product whose price trend would be reasonably representative
of many roofing materials. Accordingly, the following price analysis
relates to thi^ item only.
Geographical Variation in Prices and Spreads.
In contrast to the uniform prices of insulation board, the delivered
wholesale prices of asphalt shingles vary widely from one part of the
country to the other, depending partly upon whether the group A or
group B prices are applicable and partly upon the cost of shipping
from the nearest "factory point." The manufacturers' price to
distributors varied from $4.15 per square in eastern factory point
zones to $6.12 per square in Albuquerque, N. Mex., which is remote
from any factory point. Twelve of the fifty cities were factory points
or were close enough to such point so that the price of this item was
at or about $4.15. The wholesale price was $4.50 or lower in 31
cities ; it exceeded $5 per square in only 8 cities. The number of cities
reporting prices within each range follows:
Wholesale puce
Number of
cities
Wholesale price
Number of
cities
$4.00 to $4.24
14
17
3
8
$5.00 to $5.24 .. . _.
3
$4.25 to $4.49 .. .
$5.25 to $5.49
1
$4.50 to $4.74
$5.50 to $5.74
3
$4.75 to $4.99
$5.75 and over
1
The highest prices were found in the Rocky Mountain area and the
lowest in the eastern and midwestem regions, where more factories
are located, shipping distances are shorter, and orders typically larger.
As was to be expected, the geographical variation in retail roofing
prices was greater than in the case of wholesale prices. The largest
differential in wholesale prices was $4.15 to $6.12, a percentage
difference of 47 percent. The range of retail prices was much greater.
The typical price to contractors was $4.45 per square in St. Louis, Mo.,
and $9.26 in Butte, Mont., a spread of 108 percent. In general the
lower prices were in the factory cities and the higher levels in the
cities located farthest from the source of supply. The distribution,
according to a number of cities, follows:
CONCENTRATION OF ECONOMIC POWER
71
Retail prices
Number of
cities
1
Retail prions
Number of
cities
$4.25 to $4.49 ..
1
3
4
9
5
6
4
0
$6.25 to $6.49
2
$4.50 to $4.74 -
$6.50 to $6.74
$4.75 to $4.99
$6.75 to $6.99
0
$5.00 to $5.24 .
$7.00 to $7.24.
6
$5.25 to $5.49 ..
$7.25 to $7.49
0
$5.50 to $5. 74 . - .
$7.50 to $7.74
2
$5.75 to $5.99...
$8.00
1
$6.00 to $6.24
$9.26 ..
1
As in the case of wholesale prices, the retail prices were highest
in the Rocky Mountain region and lowest in eastern cities where
most of the factories are located. The average regional differentials
are shown below:
Region
Prices
Difference
Retail
Wholesale
Amount
Percent
I. New England- .... . ....
$5.15
5.05
5.11
5.90
5.44
5.46
6.22
7.37
5.98
$4.28
4.17
4.19
4.35
4.53
4.61
4.58
5.42
4.79
$0.87
.88
.92
1.55
.91
.85
1.64
1.95
1.19
20.3
n. Middle Atlantic
21.1
III. East North Central
22.0
IV. West North Central
35.6
V. South .Atlantic
20.0
VI. East South Central..
18.4
VII. West South Central...
35.8
VIII. Rocky Mountain
36.0
IX. Pacific
24.8
United States total .
5.83
4.58
1.25
27.3
The spread ^ between wholesale and retail prices varies greatly
throughout the country. The average difference for all the cities
included in the survey was 27.3 percent, but this figure is not uni-
formly representative of all regions. The percentages ranged all the
way from 2 percent in Charlotte, N. C, and 4 percent in Birmingham,
Ala., to 69 percent in Wichita, Kans., 58.2 percent in Fargo, N. Dak.,
and 51.3 percent in Butte, Mont. The spreads were generally higher
in the West South Central and the Rocky Mountain regions. The
percentage distribution of the margins below shows the wide vari-
ation:
Percent margin
Cities
Percent margin
Cities
0 to 9.9
5
10
15
12
40 to 49.9
4
10 to 19.9
50to59.9
2
ao to 29.9....
60 and over
1
30 to 39.9
Chart IV and table 29 illustrate the wide differences in retail and
wholesale prices in various areas and the differences between them at
various price levels. Most of the manufacturers' prices were between
$4 and $4.50 while the retail prices for the cities within this group
went as low as $4.50 and as high as $7.50. However, the tendency
for higher retail prices to accompany the higher wholesale prices is
very evident.
' The "wholesaler's compensation," a special commission to certain large distributors, was not considered
in computing the data on spreads.
72
CONCENTRATION OF ECONOMIC POWER
Chabt IV
ASPHALT STRIP SHINGLE ROOFING
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES RETAIL PRICES
*<J «iO . . . , , .*«
9.00
8.50
8.00
7.50
7.00
6.50
6.00
5.50
5.00
4.50
4.0.0
eA
•
8H
4F
86
4B
* 80
•
9A
• 51
SE
7C^«8C
re
8F
AC
•
70 60
ec
40
•
3C»
7AV
7E
C 9^8
-50 8 5G
10,36 6
9C
5H
5E
-4E 6C
•
3Aa
2C» lA *■
• 58
"A'^aA
~6B 5F
•
4G
9.50
9 00
8.50
8.00
7.50
7.00
6.50
6.00
5.50
5.00
4.50
*3 50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
WHOLESALE PRICES
us BUREAU OF LABOR STATISTICS
CONCENTRATION OF ECONOMIC POWER
73
In general, the cities which He farthest from the plant, have the
highest wholesale price levels; this is, of course, indicative of the
effect of transportation costs. For example, consider the prices in
two cities, Minneapolis, Minn., and Butte, Mont. The first is a
factory city where the price to distributors is $4.15 per square. Roof-
ing sold in Butte comes from Minneapolis and in carlot quantities
it costs $1.87 per square to ship it that distance. Hence, the whole-
sale price in Butte is $6.12 or more than 47 percent above the price
at the factory. Similarly, the wholesale delivered price at Miami,
Fla., is $5.29 per square while in the controlling factory city, New
Orleans, La., the price is only $4.43, a difference of 86 cents. All-rail
freight from New Orleans to Miami is 95 cents. Table 40 shows the
freight rates from the nearest factory point and map II shows the
shipping point to each of the cities included in the survey. The
Map II
location of plant obviously is a major factor in the wholesale delivered
prices at the various destinations.
Competitive conditions in a city are an important factor in deter-
mining retail price levels. Wliere competition between retailers is
active, margins are usually moderate or low. On the other hand,
where competition is not so vigorous, margins tend to run higher.
Certain dealers claim that they are forced to meet the prices quoted
by manufacturers' representatives who sell direct to contractors as
cheaply as they sell to jobbers in less than carload quantities. This,
of course, results in low margins and retail prices.
Other dealers handle roofing only as a service function, expecting
to make little, if any, profit. In these cases, roofing is used as a
"leader" for sales of lumber and other materials. Hence prices are
low and the margin negligible, and profit is made on other items.
Competition from substitutes is important in this industry in certain
parts of the country. In the lumber areas, cedar and cypress shingles
74 CONCENTRATION OF ECONOMIC POWER
are sold on a large scale and frequently asphalt shingle prices are
forced down thereby. Slate roofing is a factor only in the case of
higher priced dwelHngs.
In certain "depressed" areas, where construction activity and sales
of building materials are not large, dealers claim that high prices and
a high working margin are needed in order to maintain a reasonable
income. In these places, not only roofing but all types of materials
are high in price compared to the rest of the country, with the result
that construction activity may be further discouraged.
Price Trends — Wholesale Markets (See chart V and tables 30 to 39).
The trend of wholesale prices from 1935 to date was very similar in
all regions except in the Pacific area. Although several manufac-
turers have national distribution for their products, sales in States
east of the Rocky Mountains are governed by one merchandising plan
and in the far western States by another. The different price pattern
prevailing in the Far West is in part the result of this separate mer-
chandising structure.
In the eastern regions, wholesale prices declined late in 1935 but
increased rapidly in the early months of 1936. The higher level was
maintained throughout 1936 and most of 1937. In the fall of 1937,
however, about the time other durable goods prices began to drop
off, roofing prices started to decline and by the middle of 1938, had
fallen about 30 to 40 percent. With the exception of a slight increase
in 1939, this level was maintained.
After a sharp increase in March of 1935 the curve of wholesale prices
in the Pacific area was stable throughout the remainder of the year.
The trend was downward throughout most of 1936, when the level
declined by 24 percent. The index leveled off in the winter of that
year before beginning the sharp upward spiral which continued
during the first 8 months of 1937, reaching a point in October which was
75 percent of the 1935 level. There was no change until February
1939, when the trend again turned downward, declining 16 percent to
September 1939.
Price Trends — Retail Markets. (See chart V and tables 30 to 39.)
The trend of retail prices varied considerably from one region to
another. With the exception of three regions, West North Central,
West South Central, and Rocky Mountain, retail prices generally
followed the wholesale price movement but with a considerable lag.
This condition can be accounted for in part by the accumulation of
inventories in dealers' hands, a condition which frequently occurs in
this industry. The rapid market changes which occurred during the
period under consideration, recovery in 1936 and early 1937 and
recession in 1938, were^ apparently conducive to accumulation of
larger than normal stocks. The unusual price trends for roofing sold
in the three regions mentioned probably can be traced in part to the
competition of substitute materials, particularly cedar shingles.
Prices for the New England region changed only slightly from 1935
to December 1936. By February 1937, however, the level had
moved upward 10 percent and there was another small increase in the
summer of 1937. A decline started in October of that year, but the
drop was slow throughout 1938. Between December 1938 and January
1939, however, the index fell 20 percent. This reduction reflected
CONCENTRATION OF ECONOMIC POWER
75
Chabt V
ASPHALT STRIP SHINGLE ROOFING
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
UNITED STATES - Weighed Av«rog« Prlct REGION I - SOUTH ATLANTIC
REGION I - NEW ENGLAND
r\f^ic^
rrrX
^vr~_ L
1^RET«1L
\ 1
l/^ «MOLES«l.E
\ \
1
REGION n- MIDDLE ATLANTIC
r^-^
r -\
-/I
/ t
B^BETilL
1-1
I
f'^»MOLES«LC
REGION ni - EAST NORTH CENTRAL
I /vFCl
/ 1 1 1''""'"-
— n/i 4"n
\J :-o.E...E^\ L^
i 1 1
1
REGION IZ - WEST NORTH CENTRAL
j n.
\ ! 1
\.^^.WHOLCS*LC
1 /
[1
1/ ..,.,
"^^^~i=w=^
'—t.
1
r^
n
/
ylTETAIL
.1
L^
y n
WHCLCSALC
\ Lk-*
1
REGION m - EAST
SOUTH
CENTRAL
_^WHO.ES..E
~>
r^
-/
r^
13 —
REGION an - WEST SOUTH CENTRAL
^^-x'
HOLESALC
/
\
— n
/
\
i
III!
REGION •PTTT - ROCKY MOUNTAIN
"^r
y\_
\
WHOLESALE
w
\
^jL-A---
J^
*C^ \.^
r-.ET.,.
1 1
REGION IT - PACIFIC
— f^
r'
\ LI_,
6~ii
—
1 - / ": 1
1 1
y 1 1 —/^WHOLESALE
u
Lj ^ j
no
1935 1936 1937 1938 1939 1940
STATES BUREAU OF LABOR STATISTICS
1935 1936 1937 1938 1939 1940
76 C0NC5ENTRATI0N OF ECX)NOMIG POWER
the downswing in the wholesale prices which occurred in 1937 and
early 1938. Prices did not change in 1939.
The retail price index in the Middle Atlantic region declined rapidly
in the last half of 1937 and the first few months of 1938, when a 21
percent reduction occurred. This parallels in tuning the movement of
wholesale prices during the period. There was no change in the level
of prices from April 1938 to date.
The curve of retail prices for the East North Central region shows a
very peculiar trend. While it generally followed the movement of
wholesale prices it changed only once a year except during 1939. No
fluctuation occurred within each year; prices moved up or down in
January and r'^aained stable for the 12-month period. Average
prices for the leading cities in the area moved down 3 percent in
January 1936, up 18 percent in 1937, down 16 percent in 1938 and
again down 14 percent in 1939.
Retail prices in the South Atlantic area were also quite stable.
There was only a slight change upward in the 2}^ years from January
1935 to June 1937. In July, however, an increase of 9 percent
occurred. Three small reductions lowered the level during the next
two years. A break of 5 percent was recorded in June 1939.
There have been only two major movements in the retail index for
the East South Central region. A decline of 3 percent occurred in
August 1936 and a sharp reduction of 16 percent in the first half of
1938. The level was then stable until June 1939 when a slight increase
was noted.
The price index for the Pacific area showed practically no change
from January 1935 to the middle of 1937. A 6 percent reduction was
effective in October and this new level was maintained until July
1939. The index then dropped 14 percent, paralleling- the trend of
wholesale prices for the region.
As stated above, the retail price curves for the West North Central,
West South Central, and Rocky Mountain areas showed little or no
similarity to the price trends for the other regions, or to the wholesale
price movements. Regardless of the fluctuations in wholesalers'
cost, the contractor's price (the retail price) remained relatively stable,
In the discussion of margins, it was indicated that the same three
regions were "out of line" on the differences between wholesale and
retail prices. (See p. 71.) The average spread was more than 35
percent in each region. In the other areas, the spread approximated
20 percent.
This means, of course, thct the extremely high spreads which existed
when this study was made w ere, undoubtedly, much lower during most
of the period from 1935 to September 1939. Wholesale prices
generally Were higher during this period than they were in the fall of
1939; hence, the working margin was not as great. It seems likely,
however, that the level of prices set by the dealers in these regions
was high enough to afford an adequate margin even if the wholesalers'
prices were increased. There is relatively little asphalt roofing
material used because of the competition of wooden shingles produced
in the area. The retailers accumulate inventories which remain on
'.the shelves for^long periods of time, reducing the occasion for price
changes in the retail series.
CONCENTRATION OF ECONOMIC POWER
77
Table 29. — Asphalt strip shingle roofing
[Typical wholesale and retail prices for selected cities, September 1938]
Region and city
KOION I. NEW ENGLAND
A. Portland, Maine
B. Manchester, N. H
C. Burlington, Vt
D. Boston, Mass
E. Providence, R. I
F. Hartford, Conn
EEOION n. MIDDLE ATL\NTIC
A. New York, N. Y
B. Trenton, N. J
C. Philadelphia, Pa
EEOION in. EAST NORTH CENTEAL
A. Cleveland. Ohio
B. Detroit, Mich
C. Indianapolis, Ind.
E. Milwaukee, Wis
REGIOK rv. WEST NORTH CENTRAL
A. Minneapolis, Minn
B. Fargo, N. Dak.
C. Slou-T Falls, S. Dak
D. Des Moines, Iowa
E. Omaha, Nebr
F. Wichita, Kans
Q. St. Louis, Mo
REGION V. SOUTH ATLANTIC
A. Wilmington, Del
B. Baltimore, Md
C. Washington, D. C
D. Charleston, W. Va
Prices
Whole-
sale
RetaU
$4.34
$5.00
4.27
4.54
4.46
5.75
4.15
5.00
4.19
6.35
4.29
5.25
4.19
4.71
4.17
5.50
4.15
4.96
4.15
4.75
4.15
5.00
4.29
6.85
4.21
5.34
4.15
4.75
4.55
7.20
4.40
6.30
4.38
5.90
4.36
6.22
4.44
7.60
4.15
4.45
4.16
5.00
4.16
4.80
4.21
4.60
4.40
6.60
Region and city
REGION V. SOUTH ATLANTIC— COD.
E. Richmond, Va
F. Charlotte, N. C
G. Charleston, S. C
H. Atlanta, Oa
I. Miami, Fla
REGION VT. EAST SOUTH CENTRAL
A. Louisville, Ky
B. Memphis, Tenn
C. Birmingham, Ala
D. Jackson, Miss
REGION VH. WEST SOUTH CENTEAL
A. Little Rock, Ark
E. Oklahoma City, Okla
C. Austin, Tex
D. Houston, Tex
E. New Orleans, La
REGION Vm. ROCKY MOUNTAIN
A. Butte, Mont
B. Boise, Idaho...
C. Cheyenne, Wyo
D. Denver, Colo
E. Salt Lake City, Utah
F. Reno, Nev
O. Phoenix. Ariz...
H. Albuquerque, N. Mex
EEOION rX. PACIFIC
A. Seattle, Wash
B. Portland, Oreg.
C. Los Angeles, Calif
Prices
Whole-
sale
Retail
$4.-36
$6.25
4.89
6.00
4.40
6.60
4.93
6.60
6.29
7.00
4.31
6.26
4.43
6.00
4.89
6.10
4.80
6.60
4.40
6.76
4.61
6.60
4.83
6.65
4.62
6.50
4.43
6.70
6.12
9.26
6.72
7.60
4.88
6.66
4.88
7.10
5.72
7.18
5.19
7.00
5.11
6.27
6.74
8.00
6.17
7.10
4.92
6.65
4.27
6.20
Specification: Roofing, asphalt strip shingles, bijuare butt, 3-in-l stjip, approximately 210 pounds per
square; per square.
Wholesale: In carlots, manufacturer to retail distributor, f.o.b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
78
CONCENTRATION OF ECONOMIC POWER
Table 30. — Asphalt strip shingle roofing
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
Febrtiary
March
April
May
June.
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
112.3
112.3
112.3
113.3
113.3
113.3
113.3
113.3
116.4
116.4
116.4
105.9
105.9
108.6
117.3
123.7
124.3
124.8
124.8
128.1
128.1
128.5
125.7
125.7
125.7
126.9
129.7
129.7
126.4
Retail
117.6
117.6
117.6
117.7
117.7
117.7
117.7
117.7
117.7
117.7
117.7
117.4
116.2
116.3
116.3
116.2
116.0
116.0
116.2
116.2
115.9
115.9
116.1
116.1
122.1
122.1
122.2
122.0
122.5
Year and month
1937— Continued
June
July
August
September
October..
November
December
1938
January
February
March
April ._.
May
June
July
August
September
October
November
December
1939
January
February
March ...i
April '
May
June
July
August
-September..-
Index
Whole-
sale
127.0
127.0
127.0
122.9
122.6
112.5
111.1
111.9
103.1
99.6
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
98.5
99.9
100.3
100.3
100.3
100.0
99.7
Retail
122.6
123.8
123.8
123.8
118.2
118.2
118.0
114.3
114.1
114.1
106.1
105.9
105.9
105.8
105.8
105.8
105.8
105.8
105.7
102.9
103.0
103.0
103.0
102.9
103.0
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manuiacturfer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
79
Table 31. — Asphalt strip shingle roofing
REGION I, NEW ENGLAND
[Wholesale and retail prico indexes— July-September 1939=100.0]
Year and month
1935
January...
February
March
April
May
June
July
August
September..
October
November
December
1936
January
February
March...
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
112.
112.
112.
112.
112.
112.
112.
112.
117.
117.
117.
105.
105.1
109.3
119.3
128.2
128.2
128.2
128.2
134.0
134.0
134.0
130.7
130.7
130.7
130.7
134.0
134.0
129.6
Retail
120.4
120.4
120.4
120.4
120.2
120.2
120.2
Year and month
120. J
120.1
119.8
119.8
119.8
120.1
120.1
120.1
119.5
119.5
119.5
119.5
119.5
119.5
119.5
119.7
121.1
131.6
131.6
131.6
131.9
131.9
1937— Continued
June...
July
August
September
October :
November
December _
January
February...
March
April
May
June
July
August
September.
October
November..
December..
1938
1939
January 97.8
February 97.8
March 97.8
April 100.0
May 100.0
June 100.0
July... 100.0
August 100.0
September 100.0
Index
Whole-
sale
129.6
129.6
129.6
124.0
124.0
112jO
112.0
112.9
102.1
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
Retail
131.6
133.1
133.1
133.1
132.6
132.6
132.6
128.7
128.7
128.7
126.8
126.8
126.8
126.1
126.1
126.1
126.1
126.1
125.4
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
80
CONCENTRATION OF ECONOMIC POWER
Table 32. — Asphalt strip shingle roofing
[Wholesale and retail price indexes— July-September 1939=100.0]
REGION n. NORTH ATLANTIC
Year and month
1936
January
February
March
April
May
June
July
August-
September
October
November
December
1936
January
February
March ^
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
113.0
113.0
113.0
113.0
113.0
113.0
113.0
113.0
117.3
117.3
117.3
106.2
106.2
109.4
119.6
128.6
128.6
128.6
128.6
134.3
134.3
134.3
130.9
130.9
130.9
130.9
134.3
134.3
129.8
Retail
127.8
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
AprU
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August-
September
Index
Whole-
sale
129.8
129.8
129.8
124.2
124.2
112.1
112.1
113.
102.
98.
97.
97.
97.
97.
97.
97.
97.
97.
97.
97.8
97.8
97.8
100.0
100.0
100.0
100.0
100.0
100.0
Retail
127.8
127.8
127.8
127.8
118.0
118.0
118.0
118.0
118.0
118.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Car lots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 33. — Asphalt strip shingle roofing
[Wholesale and retail price indexes— July-September 1939=100.0]
KEQION III.— EAST NORTH CENTRAL
81
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November ,
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April-
May
Index
Whole-
sale
RetaU
113.9
122.2
113.9
122.2
113.9
122.2
113.9
122.2
113.9
122.2
113.9
122.2
113.9
122.2
113.9
122.2
118.3
122.2
118.3
122.2
118.3
122.2
105.7
121.8
105.7
117.4
110.2
117.4
120.7
117.4
130.0
117.4
130.0
117.4
130.0
117.4
130.0
117.4
136.1
117.4
136.1
117.4
136.1
117.4
132.1
117.4
132.1
117.7
132.1
137.0
132.1
137.0
136.1
137.0
136.1
137.0
131.4
137.0
Year and month
1937— Continued
June
July
August-.
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June ,
July.--
August
Septem,ber
Index
Whole-
sale
131.4
131.4
131.4
125.6
125.6
113.0
113.0
113.1
102.1
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
100.0
100.0
100.0
100.0
100.0
100.0
Retail
137.0
137.0
137.0
137.0
137.0
137.0
137.0
115.3
115.3
115.3
115.3
115.3
115.3
115.3
115.3
115.3
115.3
115.3
114.9
101.5
101.5
101.6
101.5
101.5
101.5
99.6
100.2
100.2
Specification: Roofing, asphalt strip shingles, square butt, 3-ln-l strip, approximately 210 pounds per
square; per square.
Wholesale: Car lots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contributor, delivered to job site, city.
82
CONCENTRATION OF ECMDNOMIC POWER
Table 34. — Asphalt strip shingle roofing
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU
May
June..
July...
August
September
October
November
December.
1936
January
February
March
April
May
June
July
August
September..
October
November
December
1937
January...
February
March ^^
April .
May
Index
Whole-
129.8
129.8
129. 8
129.8
129.8
129.8
129.8
129.8
117.8
117.8
117.8
105.3
105.
109.
119.
128
128
128,
128,
134
134,
134,
131
131
i.9
131.4
131.4
134.8
134.8
130.2
Retail
110.1
110.1
110.1
110.1
110.1
110.1
110.1
109.6
109.6
109.6
109.6
109.6
109,
109
109.
108,
108,
108.
108,
108,
108,
108,
108.
108,
108.7
108.7
108.7
106.1
106.1
Year and month
1937— Continued
June
July
August
September..
October
November.
December
1938
January.
February
March
April
May
June
July...
August
September
October
November..
December
1939
January
February
March..
April..
May
June
July._..
August
September
Index
Whole-
130.2
130.2
130.2
124.6
124.6
112.3
112.3
112.7
102.0
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.7
100.0
100.0
100.0
100.0
100.0
100.0
Retail
107.7
107.7
107.7
107.7
107.7
107.7
107.7
104.7
104.7
104.7
104.7
104.7
104.7
103.1
103.1
103.1
103.1
103.1
103.1
102.1
102.1
102.1
102.1
100.0
100.0
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots. manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
83
Table 35. — Asphalt strip shingle roofing
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=5 100.0]
Year and month
1935
January
Februarj'
March-
April-.
May
June
July
August -
September
October...
November
December
1936
January
February
March
April
May -
June
July
August
September
October
November
December...
1937
January
February
March
April
May. -
Index
Whole-
sale
109.
109.
109.
109.
109.
109.
109.
109.
114.
114.
114.
102.
102.3
106.4
116.3
124.9
125.3
124.9
124.9
130.6
130.6
131.5
128.7
128.7
128.7
129.2
132.0
132.0
128.4
Retail
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.2
102.2
102.2
102.2
102.2
102.2
102.6
102.6
102.6
102. t
102.6
102.6
103.5
103.5
103.5
103.5
103.5
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February.
March
April...-.
May
.Tune
July..:.
August
September
October
November
December
1939
January
February
March...
AprU
May
June
July-
August
September
Index
Whole-
sale
128.4
128.4
128.4
123.7
123.1
112.4
109.5
109.
100.
97.
97.
97.
97.
97.
97.
97.
97.
97.
97.
97.8
97.8
97.8
99.3
100.0
100.0
100.0
100.0
100.0
Retail
103.5
112.2
112.2
112.2
112.2
112.2
112.2
109. ;
109.7
109.7
109.7
109.7
109.7
109.7
109.7
109.7
109.7
109.7
109.7
108.5
108.5
108.5
108.5
108.5
108.5
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
84
CONCENTRATION OF ECONOMIC POWER
Table 36. — Asphalt strip shingle roofing
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July
August
September -
October
November-
December..
1936
January —
February...
March
April
May
June
July
August
September-
October
November.
December..
1937
Index
Whole-
sale
105.7
105.7
105.7
105.7
110.9
110.9
116.3
116.3
116.3
116.3
119.4
119.4
119.4
124.6
124.6
124.6
124.6
124.6
119.4
119.4
95.6
Retail
118.6
118.6
118.6
118.6
118.6
118.6
118.6
118.6
113.8
113.8
113.8
113.8
115.9
115. 9
115.9
115.9
115.9
115.9
115.9
115.6
115.6
112.3
112.3
106.7
Year and month
1938
January
February.
March
April
May
June
July
August
September
October
November.
December..
1939
January...
February
March
April
May
June
July-
August
September.
Index
Whole-
sale
95.6
95.6
95.6
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
100.0
100.0
100.0
100.0
100.0
Retail
106.7
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, deUvered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 37. — Asphalt strip shingle roofing
REGION Vn. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=» 100.0]
85
Year and month
1935
January.
February
March
April
M&7
June
July
August
September-
October
November
December
1936
January
February
March
April
May.
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
101.1
100.0
101.1
100.0
101.1
100.0
101.1
100.0
101.1
100.0
101.1
100.0
101.1
100.0
101.1
100.0
104.5
100. C
104.5
100.0
104.6
100.0
94.8
100.0
94.8
100.0
98.2
100.0
106.3
100.0
113.5
100.0
113.5
100.0
113.5
100.0
113.5
100.0
118.6
100.0
118.6
100.0
121.5
100.0
120.2
100.0
120.2
100.0
120.2
100.0
121.8
100.0
123.1
100.0
123.1
100.0
124.1
100.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May.
June -.
July
August
September
October
November
December
1939
January
February
March
April
May.
June
July
August
September
Index
Whole-
sale
124.1
124.1
124.1
121.9
119.1
111.0
101.9
102.3
98.1
96.4
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.2
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, deUverert to job site, city.
86
CONCENTRATION OF ECONOMIC POWER
Table 38. — Asphalt strip shingle roofing
[Wholesale and retail price indexes— July-September 1939= 100.0]
REGION VIII. ROCKY MOUNTAIN
Year and month
1935
January
February
March
April
May
June —
July
August
September—
October
November
December
1936
January
February
March -
April
May -
June
July -
August
September
October
November --.
December
1937
January
February
March
AprU
May
Index
Whole-
sale
114.5
114.5
114.5
114.5
114.5
114.5
114.5
114.5
118.2
118.2
118.2
107.7
107.
111.
120.
127.
127.
127.
127.
132.
132.
132.
130.
130.
130.0
130.0
132.9
132.9
129.1
Retail
99.6
99.6
99.9
100.4
102.2
102.2
102.2
102.2
102.2
102.2
102.2
99.5
101.3
101.3
101.3
101.0
101.3
101.8
102.2
102.2
102.2
102.2
104.6
102.8
103.1
103.7
103.9
103.9
105.0
Year and month .
1937— Continued
June
July...
August
September
October
November
December...
1938
January
February
March
April...
May.-
June
July..
August
September
October
November
December
1939
January
February..
March
April
May.
June
July
August
September
Index
Whole-
sale
129.1
129.1
129.1
124.2
124.2
113.7
113.7
115.
106.
102.
102.
102
102.
102.
102.
102.
102.
102.
102.
102.8
102.8
99.8
100.8
100.8
100.8
100.8
99.8
99.4
Retail
105.0
105.4
105.4
105.5
105.5
105.5
105.5
105.1
105.1
105.1
105.1
100.9
100.9
100.9
100.9
100.3
100.3
100.3
99.7
100.5
100.5
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destmation.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 39. — Asphalt strip shingle roofing
[Wholesale and retail price indexes— July-September 1939=100.0]
REGION IX. PACIFIC
87
Year and month
1935
January
February
March...
April.
May
June
July
August..
September
October
November...
December
1936
January
February
March...
April
May.
June
July-.
August...
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
112.6
125.1
112.6
125.1
112.6
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
121.5
125.1
12L5
125.1
113.5
125.5
113.5
125.5
101.8
125.5
106.3
124.6
111.0
124.6
111.0
124.6
95.7
124.6
95.7
124.6
95.7
124.6
95.7
124.6
95.7
124.6
95.7
124.6
104.0
124.6
104.0
124.6
104.0
124.6
104.0
124.6
Year and month
1937— Continued
June
July..
August
September
October.
November.
December ;
1938
January...
February
March
April
May
June.
July
August
September
October
November
December
1939
January
February
March
April
May..
June
July....
August...
September
Index
Whole-
sale
108.8
108.8
108.8
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113.1
113 1
103.7
102.6
102.1
102.1
102.1
100.4
97.6
Retail
125.6
126.1
126.1
126.0
115.8
115.8
115.8
115.8
115.8
115.8
115.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.2
115.2
115.2
115.2
116.2
115.2
100.0
100.0
100.0
Specification: Roofing, asphalt strip shingles, square butt, 3-in-l strip, approximately 210 pounds per
square per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
88
CONCJENTRATION OF ECONOMIC POWER
Table 40. — AU rail freight rates for asphalt roofing from nearest shipping point
to selected destinations, January 1936 to December 1938
Nearest producing
point
Eflective date
Destination
Jan. 1,
1935
Aug. 10,
1935
Dec. 20,
1937
Feb. 3,
1938
Mar. 1,
1938
Mar. 28,
1938
July 28.
1938
Alabama: Birmingham..
Mobile, Ala
Waterloo, Ark
Kansas City, Mo. -
MilUs, Mass
/Philadelphia, Pa..
\Edge Moor, Del...
29
22
46 J^
15
10
32
Arkansas: Little Rock..
24
61
17
12
Colorado : Denver
Connecticut: Hartford..
16
Delaware: Wilmington..
8
District of Columbia:
Baltimore, R^d
New Orleans, La..
Port Wentworth,
Ga.
Lockland, Ohio...
Kansas City, Mo..
do
9H
41
25
15
16
28
16
16
9
25
81
15H
14
9
64
10
29
25H
36
10
19
20>i
31
19
22
17
19
10
46H
30'
lOM
43
IIM
45
33
Washington.
Florida: Miami
Georgia: Atlanta
Indiana: Indianapolis...
17
18
30
18
18
11
27
83
17H
16
11
66
12
31
28
38
12
21
22}^
16
Iowa: Des Moines
Kansas: Wichita
lY
31
Kentucky: Louisville
Lockland, Ohio...
East Walpole,
Mass.
Norwood, Mass...
New Orleans, La..
Minneapolis,
Minn.
Kansas City, Mo..
East Walpole,
Mass.
Manville, N. J... .
Kansas City, Mo..
Jersey City, N. J..
Port Wentworth,
Ga.
Minneapolis,
Minn.
Kansas City, Mo..
East Walpole,
Mass.
Port Wentworth,
Ga.
Minneapolis,
Minn.
Port Neches, Tex.
do
Maine: Portland
Massachusetts: Boston..
10
M ississippi : Jackson
28
89
Montana: Butte
Nebraska: Omaha
New Hampshire: Man-
15
10
chester.
New Jersey: Trenton
New Mexico: Albu-
70
71
querque.
New York: New York. _
11
North Carolina: Char-
32
lotte.
North Dakota: Fargo
Oklahoma: Oklahoma
40
City.
Rhode Island: Provi-
11
dence.
South Carolina:
Charleston.
South Dakota: Sioux
Falls.
Texas:
Austin..
33
21
34
Houston
Vermont: Burlington .
Millis, Mass
Baltimore, Md
Lockland, Ohio...
Waukegan, 111
Kansas City, Mo..
24
19
21
12
51
Virginia: Richmond
West Virginia: Charles-
ton.
Wisconsin: Milwaukee..
Wyoming: Cheyenne
CHAPTER VI
CEMENT
DESCRIPTION OF THE INDUSTRY
Nature of the Commodity.
An important material used with aggregates to make concrete,
cement is generally divided into two classes — natural and portland.
According to R. W. Lesley/ the essential difference between the
two is that natural cement —
is a direct product of rocks as found in nature, burned usually in open kilns, while
Portland cement is a scientifically controlled product, made from properly pro-
portioned calcareous and argillaceous materials. When these materials are
burned in kilns and artificially proportioned, a chemically combined material
called 'clinker' is the result. Natural cement is burned at a lower temperature
than required to produce portland cement clinker; but in both cases after burn-
ing, the materials are ground into a fine powder, which is the cenaent of commerce.
During the last half of the eighteenth century, engineers in France
and England discovered that the hydraulic properties of limestone
depended not upon color or texture, as previously supposed, but on
the amount of clay entering into its composition. One French and
two English engineers started the separate manufacture of natural
cement. Their products were essentially the same, containing about
45 percent of lime to 30 percent of silica and alumina.^ In the United
States, however, imtil the construction of canals called for water-re-
sisting materials, the readily available supply of timber was used for
all kinds of structures. Natural cement rock was first discovered in
this country in 1818 and from that date the industry developed grad-
ually until 70 concerns were producing over 8,000,000 barrels yearly,
in 1898. Production was centered chiefly in Rosendale, N. Y., which
furnished 41.9 percent of the Nation's total. Plants were also located
in other Eastern States.^
The cement industry in this country is today chiefly concerned with
the manufacture of portland cement, which dates from the year 1872
when a small unsuccessful plant was established in Michigan. Shortly
thereafter a commercially successful plant was started in the Lehigh
Valley, Pa.*
In the early days of the industry, it was believed that the Lehigh
VaUey was the only source of material suitable for the process, but
gradually other sources were discovered. Today portland cement is
manufactured in 35 States and has constituted at least 98 percent of
all cements produced in this country in any one year since 1910.
1 R. W. Lesley, History o( the Portland Cement Industry in the United States, Chicago, 1924.
'Ibid., p. 12.
•Ibid., pp. 13,33.
* National Recovery Administration, Division of Research and Planning, The Manufactiiring Capacity
Volume and Costs of Portland Cement in the United States, by H. E. Hilts, October 6, 1934, p. 1. (Herein-
after abbreviated as N. R. A., HDts' Report.)
89
gQ CX)NOENTRATION OF ECONOMIC POWER
In recent years, regular or standard portland cements have been
greatly improved.^ They attain increased strength for ordinary use
in a much shorter time and have higher ultimate strength and better
workability than cements made in the earlier years. Moreover, new
conditions have called for additional types of cements with specialized
qualities as, for example, high early strength, unusual plasticity, low
or moderate heat of setting, and high resistance to chemical reaction.
Cement of high early strength is especially adapted for street work
which requires faster than the normal rate of drying; cement hardening
at low or moderate heat is particularly suited for use in the construc-
tion of large mass work. As further developments in the economy
have called for new uses, the industry has responded with special
types which are being called into increasing use.
The steps in the process of manufacturing cement are —
(1) Quarrying, digging, or dredging the limestone marls, oyster
shells, or calcareous materials.
(2) Digging the clays or shales.
(3) Transporting the raw materials to the mill.
(4) Storing them until used.
(5) Mixing them in the proper proportions.
(6) Pulverizing the mixture, either , dry or when mixed with
water.
(7) Storing the dry mix or slurry when the wet process is used.
(8) Burning the raw mix.
(9) Cooling the clinker.
(10) Storing the clinker.
(11) Grinding the clinker with a small admixture of gypsum.
(12) Storing the finished cement.
(13) Packing and loading the product.
There are also auxiliary operations such as —
(a) Manufacture of power.
(6) Drying and pulverizing bituminous coals used for burning the
clinker,
(c). Operation of machine shop.
(d) Technical supervision by inspection and tests of all raw ma-
terials used both before, during, and after the manufactur-
ing operations are completed.
(e) Installation and operation of pumping plants for mill water
supply.**
Industrial Trends.
In 1938 the output of 151 portland cement plants was 105,000,000
barrels with a total mill value of $154,000,000. Wliile this represents
a decline from the recovery level of 1937, it is substantially above the
low levels of 1932-35. The industry experienced its greatest growth
in the decade ending in 1929. In 1918 domestic plants shipped
71,000,000 barrels of portland cement; in 1928, the peak year, ship-
ments amounted to 176,000,000 barrels. Cement plants employed
25,000 men in 1919, and 33,000 in 1929. By 1933 employees had
dropped to slightly under 16,000 and total wages paid to $14,000,000,
compared with $49,000,000 in 1929.
» Bureau of Mines, Minerals Yearbools:, 1939, p. 1109, "Cement".
• N. R. A., Hilts' Report, op. cit., pp. 1-3, aftd additional steps included at the suggestion of members
of the industry.
CONOENTRATION OF ECONOMIC POWER
91
Concentration.
Although there are at present 85 companies manufacturing portland
cement in the United States, the 5 largest companies owned more
than one-third of all the plants in 1931 and produced 47 percent of
the output east of the Rocky Mountains. A further 18 percent was
produced by mills at or near the basing points of these 5 companies
and 30 percent was produced by non-basing-point mills in the same
territory.^
PRICE STRUCTURE
Channels oj Distribution.
Cement is usually sold by the manufacturers to building material
dealers and, in turn, by dealers to contractors. On large jobs,
manufacturers sometimes sell direct to large consumers, such as the
Government and railroads.
Basing-Point Prices.
Portland cement is generally priced under the so-called "multiple
basing-point system" and is quoted to consumers on the basis of a
destination price. Stated in its simplest terms, the price a consumer
pays is determined by the lowest sum of a base price, plus freight from
the base to destination, regardless of the origin of shipment. Accord-
ing to the Federal Trade Commission complaint,^ there are some 60
basing points scattered throughout the country, usually at the
producing centers. Prices are estabHshed at basing points and the
determination of the destination price is then a matter of adding
freight from basing point to destination. The erection of a new null
may or may not mean the estabUshment of a new basing point, it is
this characteristic which differentiates the multiple basing-point
system from other methods of freight equalization.
PRICE LEVELS AND TRENDS
Geographical Variations in Levels and Spreads.
In September 1939 the averages of typical wholesale and retail
prices in the 26 cities, where both series were available, were $2.01
and $2.67 per barrel, respectively. Although the wholesale prices
ranged from $1.40 to $2.93, prices in 16 of the cities varied only
narrowly, between the limits of $1.75 to $2.25. Retail prices varied
from $1.80 to $3.96 per barrel; in 19 of the 26 cities, the range was
only from $2 to $3. In general, the highest prices were reported in
the West South Central and Rocky Mountain States, more distant
from producing areas, and the lowest were in the East North Central
area. The range of prices in the various cities follows:
Prices
Number of cities
Prices
Number of cities
Wholesale
Retail
Wholesale
RetaU
$1.00 to $1.24....
$2.75 to $2.99
1
3
$1.25 to $1.49
1
3
8
8
6
$3.00 to $3.24
4
$1.50 to $1.74
$3.25 to $3.49—.
$1.75toS1.99
1
3
4
9
$3.60 to $3.74....
1
$2.00 to $2.24....
$3.75 to $3.99
1
$2.25 to $2.49
$4.00 to $4.24 .
$2.50 to $2.74
' Federal Trade Commission, Price Bases Inquiry, The Basing-Point Formula and Cement Prices,
March 1932, p. 89.
• In the matter of the Cement Institute et al.. Docket No. 3167.
n TJn .l.^-
92
C0NC5ENTRATI0N OF ECONOMIC POWER
As previously stated, the average wholesale price of $2.01 per
barrel was marked up to $2.67, or 33 percent, on sales at retail.
The spread between wholesale and retail prices varied greatly among
the 26 cities, from as low as 8 percent to as high as 78 percent. In
18 of the 26 cities, mark-ups varied between 1 1 and 39 percent. The
higher spreads were reported in the Rocky Mountain area and the
lower in the East North Central region. The national distribution
follows :
Diflurence between wholesale and
retail prices (percent)
Number
of cities
Difference between wholesale and
retail prices (percent)
Number
of cities
0 to9 --
1
6
8
5
40 to 49..
2
10 to 19
50 to 59
3
20to29 ..
60 to 69
1
30to39
70 to 79
1
Wholesale and Retail Price Trends.^ (See chart VI and tables 41-50.)
The national composites of cement prices both at wholesale and at
retail moved in a very narrow range between 1935 and September
1939. The only change of more than 5 percent was a cumulative
decline of 9 percent in retail prices in the first 8 months of 1935.
The net change during the period was a 6 percent decline at retail
and a 2 percent decline in the wholesale index. Price trends in the
West North Central, the East South Central, the West South Central,
and the Rocky Mountain areas were even more rigid than the national
averages.
In New England the wholesale price declined 13 percent from
January 1935 to January 1937 but recovered to its former level in
July 1938. The retail price decline in 1937 was only 8 percent while
the advance in 1938 was 20 percent for a net gain of 11 percent during
the 5-year period.
In the East North Central region, while the wholesale price re-
mained relatively stable, varying between 95 percent and 102 percent
of the July-September 1939 average, the retail price experienced
three major changes — a drop of 20 percent in the summer of 1935,
followed by a recovery of about half the decline in the following winter,
and a cumulative 12 percent drop in the fall of 1937 and 1938. In
the Middle Atlantic area, both wholesale and retail prices showed only
one major change during the period for which data are available, but
the changes were in opposite directions. The wholesale index dropped
6 percent in the summer of 1938 and the retail index rose about 9
percent in March 1939.
In the South Atlantic area, except for a 16 percent drop in retail
prices in 1935 which did not occur in wholesale prices, the wholesale
and retail indexes moved together, declining about 9 percent early in
1937 and rising about 4 percent late in 1938. In the Pacific area,
» The retail price trends were based on the regular list of cities covered by the survey. Wholesale price
trends, however, were based on a slightly different combination of cities by regions which included many
of the survey cities. By regions, the cities included in the wholesale price trends were as follows:
New England: Albany, Boston, New York; Middle Atlantic: Buflalo, Johnstown, Philadelphia, Pitts-
burgh, Scranton, East North Central: Chicago, Cleveland, Detroit, Grand Rapids, Lima, Milwaukee,
Terre Haute, Toledo; West North Central: Duluth, Kansas City (Mo.), Mason City, Minneapolis, St.
Louis; South Atlantic: Baltimore, Jacksonville, Miami, Norfolk. Richmond, Tampa, Waycross, Wilming-
ton (N. C), Winston-Salem; East South Central: Atlanta, Birmingham, Cincinnati, Huntington (W. Va.);
West South Central: Dallas, Houston, New Orleans, San Antonio, Wichita; Rocky Mountain: Denver,
El Paso, Helena, Salt Lake City; Pacific: Los Angeles, Portland (Oreg.), San Francisco, Seattle, Spokane.
CONCENTRATION OF E(X)NOMIC POWER
93
ClJABT VI
PORTLAND CEMENT
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 « 100
INDEX UNITED STATES- Wtlghtad Avtrog* Pric* REGION 1- SOUTH ATLANTIC
^
X
^WMOUSl
LE
p«rt»iL
T
REGION X- NEW ENGLAND
/
'^ \ ^
UtTAlL— ' 1 — — »»=*
1 1 1
REGION H • MIDDLE ATLANTIC
-\
''^-WHOLIflLC 1
l,«n»iL
II
REGION m - EAST NORTH CENTRAL
~\'*
nnH.
lAi\
*^v^
»HOL£«AU -^^iO"^\«/^
yr-
REGION nr - WEST NORTH CENTRAL
Ot-CMLC V,
^^
^.tr
<Jt.
I9U 1936 I9ST 1938 1959 1940 1941
UNITED STITES BUBE4U OF LABOR ST4T16TICS
T^HtTAIL
X-.
1 \ll
1 1
REGION SI • EAST SOUTH CENTRAL
.Jl
*L
■ HO
LES41E'
REGION 301 - WEST SOUTH CENTRAL
.BtTllL
/ 1
•MOL£S/U.E^
1
REGION Sm
- ROCKY MOUNTAIN
1""
TtIL
K
WHOLESALE^
REGION
IX- r
>ACIFIC
t"^
^"
ETAIL
— 1
^^i^n
WHOlEtUE
I93S 1936 1937 1936 1933 1940 1941
94
CONCENTRATION OF ECONOMIC POWER
although the net change was the same for both wholesale and
retail — a decline of about 12 percent — the interim pattern of price
movements was different. The wholesale index dropped 10 percent
early in 1935, rose 5 percent later in the year and again declined 6
percent in the fall of 1938, while retail prices fell 9 percent in 1936,
rose 12 percent late in 1937, and dropped to the previous level in 1938.
Table 41. — Portland cement
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
Index
1935
January -
February
March
AprU
May
June
July
August-
September —
October -..
November
December —
1936
January
February
March.-
AprU
May -
June.
July
August-
September
October
November
December
1937
January ---
February -...
March
AprU
May
Whole-
sale
101.
101.
101.
101.
102.
101.
101.
101.
101.
100.
101.
101.
101.2
101.1
101.1
101.1
101.1
101. 1
101.1
101. 1
101.1
101. 1
100.8
97.7
97.7
97.5
97.5
97.6
Retail
107.2
107.2
107.2
105.9
105.3
103.7
101.5
98.4
97.3
97.1
98.5
98.5
100.0
100.0
100.0
100.0
100.0
100.0
98.1
97.9
98.2
98.2
98.2
98.1
97.8
97.8
97.8
98.2
97.5
Year and month
1937— Continued
June -- -
July --
August
September -
October _
November..-
December
1938
January
February
March
April
May
June -
July
August-
September
October -
November
December
1939
January
February
March - -.-
AprU -
May -
June - --.
July
August-
September.— ..-
Index
Whole-
sale
97.4
97.3
97.2
97.0
96.6
97.2
98.2
98.3
98.3
98.3
98.4
98.6
98.4
99.6
99.6
99.3
99.3
99.2
99.2
99.2
99.8
100.1
100.1
100.1
100.1
100.1
99.9
99.9
RetaU
97.5
97.5
97.5
97.5
96.5
96.5
97.9
98.1
97.6
97.6
97.6
98.6
98.3
97.8
97.8
97.4
97.5
95.8
95.8
95.9
96.0
96.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland, per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 42. — Portland cement
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
95
Year and month
1935
January.-
February
March
April
May
June
July.-
August --.
September
October
November
December. -..
1936
January
February.
March
AprU
May
June
July
August
September
October
November
December
1937
January
February
March
April ,
May
Index
Whole-
sale
Retail
100.7
100.7
100.7
100.8
101.0 I
101.0
101.0
101.0
100.1
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
89.3
86.6
86.6
86.6
86.6
89.6
'89.6
89.6
89.6
89.6
89.6
89.6
89.6
90.1
90.1
90.1
90.1
90.1
90.1
90.1
90.1
90.1
90.1
90.1
90.1
83.1
83.1
83.1
83.1
83.1
Year and month
1937— Continued
June
July.
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September..
October...
November
December...
1939
January
February
March
April
May
June
July-
August
September
Index
Whole-
sale
86.6
86.6
87.4
88.7
88.7
88.7
88.7
88.7
88.7
87.4
96.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
RetaU
83.1
83.1
83.1
83.1
83.1
83.1
83.1
83.3
83.3
83.3
83.3
83.3
85.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland, per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper ba=s, dealer to contractor, delivered to job site, city.
96
CONCENTRATION OF ECONOMIC POWER
Table 43. — Portland cement
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0)
Year and month
1935
/anuary...
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April.-
May --
June -
July
August
September.
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
104.
104.
104.
104.
105.
105.
105.
105.
105.
105.
105.
105.
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
104.5
104.5
104.4
104.3
104.3
Retail
92.3
92.3
92.3
92.3
92.3
92.3
92.3
92.3
92.3
Year and month
1937— Continued
June
July
August
September
October
November
December..
1938
January
February
March
April
May
June .-
July
August
September
October
November
December
1939
January
February
March
April...
May
June
July...
August.--
September
Index
Whole-
sale
104.3
104.3
104.3
104.3
104.3
104.4
106.0
106.5
106.5
106.5
106.5
106.6
106.5
102.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
RetaQ
92.3
92.3
92.3
92.3
92.3
92.3
92.3
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
^7
Table 44. — Portland cement
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March ,
April
May -
June
July
August -.-
September
October.. -
November
December..
1936
January.
February
March
April..
May
June
July
August
September
October
November
December
1937
January
February...
March
April
May
Index
Whole-
sale
Retail
100.8
119.7
99.6
119.7
100.6
119.7
101.5
119.7
101.6
119.7
101.8
113.3
101.9
104.8
101.8
99.4
99.8
95.1
99.5
9611
99.1
100.5
98.7
100.5
99.5
109.0
99.7
109.0
99.7
109.0
99.7
109.0
99.7
109.0
99.7
109.0
99.7
109.0
99.7
109.0
99.7
110.1
99.7
110.1
99.7
110.1
99.7
110.1
99.0
110.1
99.0
110.1
99.0
110.1
99.0
112.2
99.0
112.2
Year and month
1937— Continued
Jime
July...
August
September
October
November
December
1938
January...
February
March
April
May...
June
July...
August
September l
October
November
December
1939
January
February
March
April
May
June
July
August ,
Septeniher
Index
Whole-
sale
97.9
97.7
96.3
95.5
96.3
96.9
96.3
96.1
96.5
97.8
97.8
97.3
95.5
94.6
95.1
96.2
96.6
98.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
112.2
112.2
112.2
112.2
105.8
105.8
105.8
108.0
104.7
104.7
104.2
110.9
109.2
103.1
103.1
103.1
103.1
102.4
97.5
97.5
97.9
97.9
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, portland: per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
98
CONCENTRATION OF ECONOMIC POWER
Table 45. — Portland cement
REGION IV. WEST NORTH CENTRAL
fWholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU
May -.
June
.July
August
September
October
November
December
1936
January
February
March
April -.
May -.-
June
July...-
August
September.
October
November
December
1937
January...
February
March
April
May
Index
Whole-
sale
Retail
96.0
98.4
96.0
98.4
96.9
98.4
97.8
98.4
98.2
98.4
98.2
08.4
98.2
98.4
98.2
98.4
98.2
98.4
98.2
98.4
98.2
98.4
98.2
98.4
98.2
98.5
98.2
98.5
98.2
98.5
98.2
98.5
98.2
98.5
98.2
98.5
98.2
98.5
98.2
95.0
98.2
95.0
98.2
95.0
98.2
95.0
98.2
95.0
97.7
95.0
97.7
95.0
97.7
95.0
97.7
95.0
97.7
95.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July...
August
September
October
November
December
1939
January .
February
March
April.
May -..
June
July
August
September
Index
Whole-
sale
97.7
97.7
97.7
97.7
97.7
98.4
99.1
99.1
100.5
100.5
100.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
96.0
96.0
96.0
96.0
96.0
96.0
%.0
96.1
96.1
96.1
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
99
Table 46. — Portland cement
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=sl00.0)
Year and month
1935
January
February
March
April
May
June
July
August
September -
October
November
December
1936
January
February
March-
April
May -
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
RetaU
103.9
118.8
103.9
118.8
103.9
118.8
104.2
112.3
105.2
112.3
105.3
112.3
105.3
112.3
105.2
103.4
104.7
103.1
104.5
103.1
104.3
103.1
104.3
103.1
104.3
101.3
104.1
101.3
103.9
101.2
104.0
101.2
104.0
101.2
104.0
101.2
103.8
101.2
103.8
101.2
103.8
101.2
103.1
101.2
100.9
101.2
100.5
101.2
98.2
100.6
98.2
100.6
94.7
100.6
94.4
100.6
94.4
95.2
Year and month
1937— Continued
June.- - -.
July
August
September.—
October
November...
December
1938
January
February.
March
April —
May
June
July -
August
September
October.
November
December —
1939
January
February
March
April
May
June
July....
August
September
Index
94.4
94.4
94.4
94.4
94.4
95.1
96.2
96.2
96.2
96.3
96.5
96.5
96.3
96.1
96.1
95.0
95.3
95.3
95.3
96.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.2
9.'>.2
95.2
95.2
95.2
95.2
95.2
96.4
96.4
96.4
96.4
96.4
96.4
96.5
96.5
94.0
94.0
94.0
99.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
100
CONCENTRATION OF ECONOMIC POWER
Table 47. — Portland cement
EEQION VI. EAST SOUTH CENTRAL
[Wholesale and retaU price indexes— July-September 1939=100.0]
Year and month
1935
January.
February
March
April
May
June
July--- —
August-
September
October -
November
December
1936
January
February _
March
April
May
June -
July ---.
August
September -..
October -.-
November
December -..
1937
January
February -
March
April
May
Index
Whole-
sale
Retail
99.7
100.0
99.7
100.0
99.7
100.0
99.7
100.0
99.9
100.0
100.3
100.0
100.4
100.0
100.4
100.0
98.7
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.5
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
98.2
100.0
97.3
100.0
97.3
100.0
98.0
100.0
99.1
100.0
99.1
100.0
Year and month
1937— Continued
June
July
August
September
October
November.-
December
1938
January
February
March
April
May
June
July- -..
August .-. -
September
October
^ ,'ovember
December
1939
January
February --
March
April --
May
June -
July
August
September
Index
Whole-
sale
99.1
99.1
99.1
99.1
99.1
99.9
100.9
100.9
100.9
101.1
101.4
101.5
101.5
101.5
101.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealei' to contractor, delivered to job site, city.
C0NCE3NTRATI0N OF ECONOMIC POWER
101
Table 48. — Portland cement
REGION Vn. WEST SOUTH CENTRAL
rwholesale and retail price indexes— Juiy-September 1939^100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April -
May
June
July..
August
September .....
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
100.2
101.5
100.2
101.5
100.2
101.5
100.2
101.5
100.4
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.6
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
100.7
101.5
99.6
101..5
99.5
99.8
99.1
99.8
99.1
99.8-
99.1
99.8
99.1
99.8
99.1
99.8
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June...
July
August.
September
October
November
December
1939
January
February _.
March
April
May
June
July
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
RetaU
99.8
99.8
99.8
99.8
99.8
99.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site, city.
102
OONCENTRATION OF ECONOMIC POWER
Table 49. — Portland cement
REGION Vm. ROCKY MOUNTAIN ^
[Wholesale and retaU price indexes— July-September 1939=100.0]
Year and month
1935
January
February.
March
April..
May
June
July
August
September
October
November
December
1936
January...
February
March
April
May
June
July...
August
September.
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
100.4
115.1
100.4
115.1
100.4
115.1
100.4
115.1
100.5
103. 7'
101.0
103.7
101.0
103.7
101.0
105.2
101.0
105.2
101.0
102.3
101.0
101.7
101.0
101.7
101.0
101.7
101.1
101.7
101.4
101.7
101.4
101.7
101.4
101.7
101.4
101.7
101.4
101.7
101.4.
101.7
101.4
101.7
101.4
101.7
101.4
101.7
101.4
101.7
100.8
101.7
100.8
101.7
100.8
101.7
100.8
101.7
100.8
101.7
Year and month
Index
Whole-
sale
1937— Continued
June
July
August
September
October
November
December
1938
January...
February
March.
April
May
June
July
August ,
September
October
November
December
1939
January
February
March
April
May
June
July
August..
September
100.8
100.8
100. S
100.2
100.2
100.6
101.0
101.0
100.4
99.7
99.7
99.7
99.7
99.7
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
101.7
101.7
101.7
101. 5
101.5
101.5
101.5
101.5
101.8
101.8
101.8
101.8
101.8
101.8
101.8
100.7
101.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Cement, Portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f.o.b. cars destination.
Retail: In paper bags, dealer to contractor, delivered to Job site, city.
CONCENTRATION OF ECONOMIC POWER
103
Table 50. — Portland cement
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July
August
September.,
October
November.
December.
January
February...
March.
April
May
June
July
August
September.
October
November-
December..
January..
February.
March
AprU
May
1935
1936
1937
Index
Whole-
sale
113.5
113.4
110.9
108.5
107.2
103.3
103.3
103.3
103.3
103.6
108.2
108.7
108.7
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
Retail
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
111.1
111.1
111.1
111.1
111.1
111.1
101.5
101.5
101.5
101.5
101.5
101.5
101.6
101.5
101.5
101.5
101.5
Year and month
1937— Continued
June -
July-- ---.
August
September
October
November.
December
1938
January
February...
March
April
May
June
July
August
September
October.
November
December
1939
January
February
March
April --
MaV
June
July—
August
September
Index
Whole-
sale
107.9
107.9
107.9
107.9
107.1
106.7
108.1
108.5
108.5
108.5
108.6
108.8
108.8
108.8
108.8
108.8
108.1
103.3
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.7
99.2
99.1
Retail
101. 5
101.5
101.5
101.5
100.8
100.8
112.8
112.8
112.8
112.8
112.8
112.8
112.8
112.8
112.8
112.8
113.0
100.2
100.2
100.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Secification: Cement, Portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o.b. cars destination.
RetaU: In paper bags, dealer to contractor, delivered to job site, city.
CHAPTER VII
LIME
DESCRIPTION OF THE INDUSTRY
Nature oj the Product.
Various types of lime have widespread use in agriculture as fer-
tilizers and soil conditioners, and in building as plasters and mortar
binders. In 1937, 9.8 percent of all lime produced was used in agricul-
ture, 23.0 percent for building, 52.2 percent chemically in industry,
and. 15.0 percent for refractories.'
Among the types of products are hydrated limes, common lump or
quicklimes, finishing limes, and refractory limes.- In 1937 and 1938,
hydrated limes constituted 31.6 and 35.0 percent, respectively, of all
limes produced in this country. Evidence from N. R. A. records
and the National Lime Association indicates that building lime is
divided about equally between hydrated and quicklime. Bureau of
Labor Statistics field agents report that hydrated lime is gaining in
popularity over quicklime because of its relative ease m hand! in
and the smaller danger of spoilage.
Production Statistics.
In 1938, 284 companies produced three and one-third million short
tons of lime, having a value of a little over $24,000,000. About 35
percent of the companies produced less than 1,000 short tons each and
accounted for only 8.3 percent of total production. On the other
hand, 2 percent of the total number of companies, those producing
100,000 short tons or more, produced 26.1 percent of the industry
total.2
Distributed widely geographically, lime was produced in 38 States.
Ohio was the leading State, producing 27.6 percent of the national total;
Pennsylvania ranked second. Virginia, West Virginia, and Missouri
were also important producing centers. (See map III.)
PRICE STRUCTURE
Because of the wide geographical distribution of small companies
and plants, the pricing practices of the industry fall in no consistent
Nation-wide pattern. Even within narrow regions, pricing methods
often differ between companies. Price reports, therefore, are often
conflicting.
' Bureau of Mines, Minerals Yearbook, 1939, p. 1190. (Lime: Salient Statistics of the Lime Industry in
the United States, 1937-38).
' A dolomitic refractory lime is not a pure lime product, but is usually produced by lime manufacturers
from the same raw materials in combination with other ingredients.
' Bureau of Mines, Minerals Yearbook, 1939, p. 1202. (Lime: Salient Statistics of the Lime Industry in
the United States, 1937-38).
105
106
OONCENTRATION OF ECONOMIC POWER
/
^-./V^
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LiJ
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2
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^mm^
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u.
Yl ^^^^^ (\s ^-^^"'^^^
7\
o
V!^^^^^^ I /^ '\ r"^
z
y*! \^^^^^^^\ V' (
o
f7^ "^P^-tfT'^kS^^^ T \\ J \
^^m
fcl C^ ^^^TvvV^^!^vvS^f 1 1 ^^^^^^* ^^
H
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o
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z>
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r i W-w^^T^^ ^St nb>>
o
£ ^r^ 1 ^3^ r-^
on
^ \i ,,^?^
T** ^v,^^^^^^^_^^ 1 y
Q.
, V T W"*^ iR<^^^c$$^
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UJ
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Xro J 1
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3 T"^ k
H
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^
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\ \
1
. .-r-'^
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(
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—
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f
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tjj
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y
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H
jT
<
1
r 1
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H
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0)
\ \ \ \ \ ^
1-
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2
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<
1 1 r I 1 o^-
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/ 1 1 ~~ ~ / S ^3
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/ \ 1 -J / -1 at o
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Q.
/^^ r J ^
5y
^Zl 1 """" -— «/ / xw
/^
■^ I 1 y^ 5o
T
CONCENTRATIOxN OF ECONOMIC POWER
107
According to members of the industry, the most important pricing
system is that of freight eq^ualization. The basing-point system,
however, is practiced to a Umited extent. In a few areas, a multiple
basing-point system is followed. In other areas, producers charge a
straight f. o. b. mill price, plus freight, and they do not seek sales in
localities where such a practice will not get business. Finally, a
number of producers follow the practice of "meeting the competitive
price-' in each market in which they attempt to sell, without any
formalized method for doing so.
Building lime is marketed generally from producer through building
material dealers to contractors and over-the-counter trade. Occa-
sionally, sales are made direct from producers to large consumers.
PRICE LEVELS AND TRENDS
Geographical Variations in Prices and Spreads. (See chart VII and
' table 51.)
In the 38 cities for which both wholesale and retail prices were
reported to the Bureau, price levels and margins varied widely. In
September 1939 the wholesale prices ranged from $8 per ton in Balti-
more and Washington to $19.70 in Boise, Idaho. In the Baltimore
market there are many competing producers with plants located
nearby and relatively low prices ; while the producers entering the
Boise market are few and at a distance, and the price is high. Retail
prices varied even more widely , from a low of $ 1 2 in New York and $ 1 3 . 50
in Atlanta, Ga., to a high of $40 per ton in a Rocky Mountain city.
The bulk of wholesale prices is within a narrower range ; in 26 of the
38 cities the prices varied between the narrow limits of $10 to $14.
Retail prices varied from $14 to $20 in 17 cities and from $20 to $24
in 16 cities. The distribution follows:
Prices
$8 to $9.99...
$10 to $11.99.
$12 to $13.99.
$14 to $15.99.
$16 to $17.99-
$18 to $19.99.
$20 to $21.99.
$22 to $23.99-
$24 to $25.99.
Number of cities
Whole-
sale
Retail
I'riccs
$26 to $27.99.
$28 to $29.99.
$30 to $31.99.
$32 to $33.99.
.$34 to .$35.99.
$36 to $37.99.
$38 to $39.99.
$40 to $41.99.
Number of cities
™e- Retail
1
The average of typical wholesale prices in all the cities was $12.28;
the average of retail prices was $19.64. The highest levels were
quoted in the Rocky Mountain area and the lowest in the Middle
Atlantic States.
The spread between wholesale and retail prices was in general
widest in those regions whore the actual level of prices was highest.
The average spread for all cities was approximately 60 percent, with
the lowest average spread (43 percent) in the Middle Atlantic area
and the highest (89 percent) in the Rocky Mountain region. The
:i7.*.«.'.
-41— No. ;;.•!——!)
108
CONCENTRATION OF ECONOMIC I'OWEK
Chart VII
HYDRATED LIME
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES
^42
40
38
36
34
32
30
28
26
24
22
18
12
$4
IC
7B«»7C eo
4C
IS aiE
I \ lA 7A 60
3C.— V.-iM.-.-
68' '5G
IF 40 7E
58 3A 428 38 '
-. *•.-.-. 10-
RETAIL PRICES
1^42
40
38
36
34
32
30
28
26
20
14
10 12 14 16 18 20 22
WHOLESALE PRICES
U.S.BUREAU OF LABOR STATISTICS
OONCENTRATION OF ECONOMIC POWER
109
average prices and margins are shown in the following summary, by
regions :
Region
Prices
Difference
Wholesale
Retail
Actual
Percent
I. New England
$11. 25
9.62
10.03
12.64
11.08
11.72
13.23
17.00
15.70
$29.00
13.75
16.00
18.91
16.06
18.67
21.02
32.08
26.00
$7.75
4.13
5.97
6.27
4.98
6.95
7.79
15.08
10.30
68.9
II. Middle Atlantic
42.9
III. East North Central
59.5
IV. West North Central -
49.6
V. South Atlantic
VI. East South Central
44.9
59.3
VII. West South Central-
58.9
VIII. Rocky Mountain..
88.7
IX. Pacific.
65.6
United States
12.28
19.64
7.36
59.9
Wholesale and Retail Price Trends. (See chart VIII and tables 52 to 6 1 .)
\\Tiolesale prices fluctuated within a limited range between 1935 and
September 1939; retail prices moved even more narrowly. The net
change of both wholesale and retail national composites was less than
3 percent for the period. The wholesale price fell 10 percent in the
first 8 months of 1936, rose 12 percent in 1937, and then dropped again
by 7 percent early in 1938; the retail national composite remained
virtually unchanged during the 5 years.
Widely different patterns of behavior are revealed through a study
of the individual regions. In the East North Central, West South
Central, and Rocky Mountain areas both wholesale and retail prices
remained practically unchanged. In the Middle Atlantic region, a
downswing of 17 percent in the wholesale price in 1936 and a recovery
in 1937, followed by a 10 percent decline in 1938 were not reflected
in the retail price trend, whose only change, was a 7 percent decline
during the last half of 1938 and 1939. In the West North Central
region the w^holesale index climbed 14 percent over a 4-year period,
while the only change in the retail price was a 9 percent drop in July
1936. In the South Atlantic area, retail prices remained stable while
the wholesale price fluctuated considerably, dropping 14 percent in
December 1935, rising 24 percent in December 1936, and again falling
12 percent in December 1937, and 8 percent in December 1938. In
the Pacific area, the wholesale price advanced 6 percent in June 1937
and declined 15 percent in August 1939, while the retail price advanced
12 percent in June 1936 and an additional 5 percent in December 1938.
110
CONCENTRATION OF ECONOMIC POWER
Chakt VIII
HYDRATED LIME
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 « 100
INDEX UNITED STATES - Wti«hl*tf AvtrogtPrict
110
«T«.
iN..^^
e-^^.
100
90
■^^-■mJ
»^^—
__rs^--\_v.
^^^
\J- WMOU
MLC
,
REGION Z- NEW ENGLAND
— RtTAlL
i
REGION n
MIDDLE ATLANTIC
- \ "1- r"
~\^
rv
'^f
Lj
'
LJ
i
REGION JH - EAST NORTH CENTRAL
1
1
1 1 *~-»MOl.t»«L£ 1
1 1 1
1 '
i 1 I
REGION TS. - WEST NORTH CENTRAL
i i
1 j
!
, ' -^^-^ —
I ! 1
1935 1936 1937 1938 1939 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
REGION Z - SOUTH ATLANTIC
1 — i
WHOLESALE —
1
RCTAlV^ "^
,-
REGION
SL-
EAST
SOUTH CENTRAL
RETAIL,^ i 1
.WHOLESALE
1
REGION
3ni - WEST SOUTH CENTRAL
RETAl
^
^w»
OLESALE
REGION Sm
- ROCKY MOUNTAIN
~N
WHOLESALE ^'^^
J~^|
I
REGION TZ - PACIFIC
1
1
WHOLtSAL
H
' 1 ,
nJ.-.
.ET.,L
1
I
1 1
i
1935 1936 1937 1938 1939 1940 1941
CONCKNTRATION OF ECONOMIC POWER
Table 51. — Hydraled lime
[Typical wholesale and retail prices for selected cities, September 1939]
111
Prices
Region and city
Prices
Region and city
Whole-
sale
Retail
Whole-
sale
Retail
REGION I. NEW ENGLAND
A. Portland, Maine
$11.69
11.25
11.25
11.25
11.25
10.81
9.70
9.55
9.60
10.50
10.00
12.30
14.00
13.30
11.90
12.50
13.20
11.30
9.90
8.00
$20.00
20.00
22.00
14.00
20.00
18.00
14.00
13.50
14.00
14.00
20.00
16.00
23.40
22.00
18.00
19.00
18.00
16.00
14.00
14.00
REGION V. SOUTH ATLANTIC— COnt.
D. Charleston, W. Va
$10. 75
9.38
11.99
12.26
11.46
14.89
10.35
11.40
13.40
12.40
13.40
13.70
13.70
12.96
19.70
15.50
15.70
17.10
15. 70
$16.00
B. Manchester, N. H
E. Richmond, Va ...
15.00
C. Burlington, Vt-
F. Charlotte, N. C
16 00
D. Boston, Mass
O. Charleston, S. C
20.00
E. Providence, R. I . 1.
H. Atlanta, Ga ..._„
I. Miami, Fla ... .
13 50
F. Hartford, Conn
20.00
REGION II. MIDDLE ATLANTIC
B. Trenton, N. J
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky..
16.00
C. Philadelphia, Pa
B. Memphis, Tenn
20.00
D. Jackson, Miss
20.00
REGION III. EAST NORTH CENTRAL
A. Cleveland, Ohio
REGION Vn. WEST SOUTH CENTRAL
A. Little Rock, Ark
B. Detroit, Mich
20.00
C . Indianapolis, Ind
B. Oklahoma City, Okla
■ 22.50
C. Austin, Tex
22.50
REGION IV. WEST NORTH CENTRAL
D. Houston, Tex.
22.10
E. New Orleans, La
18.00
A. Minneapolis, Minn
REGION Vni. ROCKY MOUNTAIN
B. Boise, Idaho
B. Fargo, X. Dak
C. Sioux Falls, S. Dak
D. Des Moines, Iowa.
40.00
E. Omaha, Xebr.-. ._.
C. Cheyenne, Wyo
32.30
F. Wichita, Kans _._
D. Denver, Colo.- .
22.00
O. St. Louis, Mo---
REGION V. SOUTH ATLANTIC
A. Wilmington, Del
H. Albuquerque, N. Mex
REGION IX. PACIFIC
C. Los Angeles, Calif
34.00
26.00
B. Baltimore, Md
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
112
OONCENTRATION OF ECONOMIC POWER
Table 52.- — Hydrated lime
COMPOSITE UNITED STATES AVERAGE
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
103.
103.
103.
103.
103.
103.
103.
103.
103.
103.
103.
103.
101.
101.
101.
101.7
101.7
101.7
101.7
101.7
Retail
102.7
102.7
102.7
102.7
102.7
102.7
102.4
102.4
102.4
102.2
102.5
102. 5
102.4
102.4
102.4
102.4
102.4
102.5
103.6
103.2
103.2
103.2
103.2
103.1
103.1
103.1
103.1
103.1
103.1
Year and month
1937— Continued
June
July
August- -_
September
October
November
December .-.
1938
January
February
March
April
May _
June
July...
August
September
October _
November...
December
1939-
January
February
March
April .
May
June
July
August
September _..
Index
Whole-
sale
101.7
105.0
105.0
105.0
105.0
105.4
106.7
104.8
104.8
104.8
105.1
105.1
100.5
100.5
100.4
100.4
100.4
100.4
100.4
101.4
101.4
101.4
101.4
101.4
401.4
101.3
99.3
99.4
Retail
103.1
103.4
103.4
103.1
103. 1
103. 1
103.1
103.1
103.1
103.1
103.1
103.2
103.0
103.1
103.1
101.3
101.3
101.3
101.3
101.9
101.9
101.8
101.9
101.9
101.9
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags: per ton.
Wholesale: Carlots, producer to retail dealer, f. o. d. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
COJSCKM'KATIUN OF EOOIS'OMIC POWEK
113
Table 53. — Hydrated lime
REGION r. NEW ENGLAND
I Wholesale and retail price indexes July-September 1939=100.0]
Year and month
January
February...
March
.\pril
May
June...;
July
Aupu-st
September.
October
November.
December..
January ...
February...
March
April
.May
June
July
Ausni-st
September.
October
November-
December .
January..
February-
March
.\pril
May
1935
1936
Index
Whole-
sale
Retail
108.3
108.3
108.3
108.3
108.3
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108.2
108. J2
108.2
108.2
108.2
108.2
100.
100.
100.
100.
100.
Year and month
1937— Continued
June
July -.
August - -
September.
October
November.
December
January
February...
March
April -.
May.-
June
July
Augu.st
September.
October.- ..
November.
December. .
1938
January
February...
March
April
May
June
July
Auftust
September-
1939
Index
Whole-
sale
Retail
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.0
'100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
specifications: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
114
CONCENTRATION OF ECONOMIC POWER
Table 54. — Hydrated lime
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes — July- September 1939=100]
Year and month
1935
January
February
March
April
May
June
July
AuglLSt
September
October
November
December.
1936
January
February...
March
April
May
June.
July
Aueust
September
October.
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
104.9
107.9
104.9
107.9
104.9
107.9
104.9
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
106.0
107.9
98.7
107.9
98.7
107.9
98.7
107.9
98.7
107.9
98.7
107.9
88.2
107.9
88.2
107.9
88.2
107.9
88.2
107.9
98.1
107.9
98.1
107.9
98.1
107.9
98.1
107.9
98.1
107.9
Year and month
1937— Continued
June...
July
August
September
October J..
November
December
1938
January
February
March 1.
April
May
June.
July
August
September..
October.
November
December
1939
January;
February
March •
April
May
June
July.
August
September .-. .
Index
Whole-
sale
98.1
103.3
103.3
103.3
103.3
103.3
105.3
105.
105.
105.
105.
105.
94.
94.
94.
94.
94.
94.
99.9
99.9
99.9
99.9
100.2
Retail
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
108.1
108.1
108.1
108.1
104.2
104.2
104.2
104.2
104.2
104.2
104.2
104.2
104.2
104.2
100.0
100.0
100.0
Sepcifications: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
115
Table 55. — Hydrated lime
REGION m. EAST NORTH CENTRAL
(Wholesale and retail price indexes— July-September 1939?= 100]
Year and month
Index
January
February. -.
March
April
Msy
June
July
August
September -
October
November
December . .
January
February-
March
April
May
June
July-
August
September-
October
November -
Decembe^-
January.-
February.
March
April
May
1935
1936
1937
Whole-
sale
97.3
97.3
97.3
98.6
98.6
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
97.3
97.3
97.3
97.3
97.3
Retail
100.3
100.3
100.3
100.3
100.3
100.3
98.9
98.9
98.9
97.4
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.7
99.7
100.0
100.0
100.0
Year and month
1937— Continued
June .-
July
August
September
October
November
December
January
February,..
March
April
May
June
July
August
September.
October
November-
December-.
1938
January
February...
March
April
May
June
July-
August
September.
1939
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
Index
Whole-
sale
97.3
97.3
97.3
97.3
97.3
99.0
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.1
99.1
100.0
100.0
100.0
100.0
100.0
100.0
116
CONCENTRATION OF ICCONOMIC POWER
Table 56. — Hydrated lime
REGION IV. WEST NORTH CENTRAI/
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June -
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
June
Index
Whole-
sale
Retail
88.3
110.1
88.3
110. 1
88.3
110.1
88:3
110.1
91.4
110.1
93.0
110.1
93.0
110.1
93.0
110.1
93.0
110.1
92.8
110.1
92.8
110.1
92.8
110.1
92.8
110.3
92.8
110.3
92.8
110.3
93.4
110.3
93.4
110.3
93.4
111.1
93.4
111.1
93.4
100.1
94.9
100.1
94.9
100.1
94.9
100.1
94.9
100.1
93.8
100.1
93.8
100.1
93.8
100.1
93.8
100.1
93.8
100.1
93.8
100.1
Year and month
1937— Continued
July
August
September
October
November
December
1938
January
February
March
April.-
May
June
July .-_
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
97.2
97.2
97.2
97.2
97.8
97.8
98.1
98.1
98.1
99.7
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
lOO.O
100.0
100.0
100.0
Retail
100.1
100.1
100. 1
100. 1
100.1
100.1
100.1
100. I
100 1
100. 1
100. 1
100.1
100. 1
100.1
100.1
100. 1
100.1
100. 1
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
117
Table 57. — -Hydrated lime
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939*= 100.0]
Year and month
1935
January
February
March
April
May
June
July.—
August
September
October
November
December
1936
January
February
March
AprU -
May
June
July
August
September
October
November...
December
1937
January
February
March
April
May
June
Index
Whole-
sale
Retail
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
110.7
102.0
95.7
101.3
95.7
101.3
95.7
101.3
95.7
101.3
95.7
101.3
95.7
101.3
95.7
101.3
95.7
101.3
95.5
101.3
95.5
101.3
95.5
101.3
95.5
101.3
124.2
101.3
124.2
101.3
124.2
101.3
124.2
101.3
124.2
101.3
124.2
101.3
Year and month
1937— Continued
July
A ugust - -
September
October
November
December
1938
January
February
March
April...
May
June
July
August •.
September
October
November
December
1939
January
February
March
April
May
June
July
August
September. :
Index
Whole-
sale
124.3
124.3
124.3
124.3
124.3
124.3
109.4
109.4
109.4
109.4
109.4
109.2
109.2
109.2
109.2
109.2
109.2
109.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
101.3
101.3
101.3
101.3
101.3
101.3
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.4
100.4
100.4
100.4
100.4
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
118
CONCENTRATION OF ECONOMIC POWER
Table 58. — Hydrated lime
REGION VI. EAST SOUTH CENTRAL'
[Wholesale and retaU price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June.
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July
August
September.
October
November-
December..
January. .
February.
March
April
May
1936
Whole-
sale
Index
Retail
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
Year and month
1937— Continued
June .
July
August
September
October
November.
December
January...
February..
March
April
May
June -.
July.
August
September.
October
November.
December.
1938
January. . .
February..
March
April
May
June
July
August
September.
Index
Whole-
sale
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
99.0
Retail
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
104.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 59. — Hydrated lime
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
119
Year and month
1935
January
February.
March
April
May
June
July
Aucust
September
October
November
December
1936
January --
February..
March
April
May
June
July.
August..
September.
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
100. 1
100. 1
100.1
100. 1
98.9
99.0
99.0
99.0
99.0
98.9
99.4
99.4
99.4
99.4
99.4
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June
July. -.
August- --
September...;.
October
November
December :
1938
January
February
March
April.
May
June
July
August
September
October
November .
December :
1939
January.
February
March.
April
M^
June -
Jury ...,
August
September
Index
Whole-
sale
99.4
99.4
99.4
99.4
99.4
100.1
100.1
100.1
100.1
100.1
100.1
100.1
101.0
101.0
101.0
101.0
101.0
101.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. h. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
120
CONCENTRATION OF ECONOMIC POWER
Table 60. — Hydrated lime
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
Whole-
sale
1935
January
February...
March
April
May.
June
July
August
September
October
November
December.
1936
January
February.
March
April
May --
June
July
August. --
September
October
November
December
1937
January
February
March
April
May.-
Index
98.6
98.6
98.6
98.6
98.7
98.7
98.7
98.7
98.7
98.5
98.5
98.5
98
5
5
5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
97.7
97.7
97.7
97.7
97.7
Retail
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
Year and month
1937— Continued
June -
July
August :
September
October
November
December
1938
January
February.
March
April -
May
June
July
August
September
October ^
November
December
1939
January
February.
March
AprU-
May
June
July...
August.
September
Index
Whole
sale
97.7
97.3
95.7
95.7
95.7
97.1
97.1
97.1
97.1
97.1
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
99.9
99.9
99.9
99.9
99.9
101.0
101.0
101.0
101.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
RetaU: Dealer to contractor, delivered to job site, city.
CONCKXTKATION OF ECONOMIC TOWER
121
Table 61. — Hydrated lime
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January.. -
February
March
April
May..
June.-
July -
August..-
September
October.
November
December
1936
January
February
March
April
May
June
July
August
September
OctobT
November
December
1937
January
February
March
April
May
Index
Whole-
sale
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103. 3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
103.3
Retail
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
85.1
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
Year and month
1937— Continued
June
July
.\ugust . .•
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November.
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
103.3
109.6
109.6
109.6
109.6
109.6
109.6
109.6
109.6
109.6
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
110.8
94.6
94.6
Retail
94.8
96.7
%.7
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
94.5
101.0
101.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lime, hydrated, mason's, in paper bags; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER VIII
PAINTS AND VARNISHES
DESCRIPTION OF THE INDUSTRY
The value of production of paints, varnishes, and related products
was $454,000,000 for the year 1937. Of this total, ready-mixed paints
represented $104,000,000, varnishes $65,000,000, and enamels
$75,000,000.^ The corresponding values for the year 1929 were
$452,000,000, $178,000,000, $72,000,000, and $40,000,000, respectively.^
Census data published for 1937 showed 1,124 manufacturing plants
for tliis industry,^ as compared with 1,063 plants in 1929. The plants
were scattered over 40 States but 8 States produced 81 percent
of the total output. These States in order of importance are New
Jersey, Illinois, New York, Ohio, Michigan, Pennsylvania, California,
and Missouri. With the exception of California, the production is
centered in the Great Lakes and East North Central regions. Map
IV illustrates this concentration, showing the States which produced
5 percent or more of the industry total. The geographical distribution
of the value of products in 1937 follows:
Table 62. — Geographical distribution of production
State
New Jersey...
niinois
New York
Ohio
Michigan
Pennsylvania
California
Value of
Percent
product '
of total
$88,830,262
17
79, 945, 742
15
62,408,117
12
54,918,984
10
48, 224, 221
9
43, 556, 966
8
33, 532, 796
6
State
Missouri
Wisconsin..-
Indiana
Kentucky.
Maryland
Massachusetts
other States (28).,
Value of
product '
$27, 768, 739
12, 605, 381
12, 315, 308
12,264,914
11,530.585
11, 526, 697
Percent
of total
' Census of Manufactures: 1937, Part I. "Paints, pigments, and varnishes" table 2, p. 728.
Although there are a large number of companies engaged in the
production of paints, pigments, and varnishes, a few very large cor-
porations account for a substantial portion of the total output. De-
partment of Commerce statistics show the highest concentration for
enamel, with the four largest companies producing 59 percent of the
total. For mixed paints, the percentage is 33, and for varnishes 29
percent.
In addition to mixed paints, enamels, and varnishes, some of the
more important items produced in the industry are paste paints, white
and red lead in oil and dry, water paints, stains, lacquers, fillers, shellac,
dry colors and pigments, whiting, litharge, lithopone, zinc oxide, tita-
' Census of Manufactures: 1937, Paints, varnishes, and related products, table 4, p. 730.
' Census of Manufactures: 1929. "Paints and varnishes" products by kind and quality, table 3, p. 720.
Total value obtained by subtracting value of "pigments" from "all products."
' Including pigments.
123
2T585-_'— 41 — \... 33-
-10
124
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 125
niiim oxide, and other oxides used in the industry and for sale. The
products priced for this survey were —
Paint: Ready-mLxed, first quaUty, in gallon cans:
Outside wliite, gloss.
Inside white, flat.
Enamel: Interior, white, quick-drying, gloss, first quality.
Varnish: interior, first quality.
Wholesale prices obtained were per gallon, producer to retail dealer,
f. o. b. cars destination, in less-than-carlot quantities. Retail prices
were per gallon, dealer to contractor, delivered to job site, city.
PRICE STRUCTURE
The wholesale price of ready-mixed paints is largely a matter of
administrative determination, and different methods are used by the
different firms in the industry. Management weighs innumerable
factors, such as costs of production and distribution, known or
rumored prices of competitors, type of paint needed in the locality,
etc., and sets up a list or lists with specified volume, trade, and cash
discounts. Departures from the trade lists are relatively rare, except
when prices may be reduced in order to secure the order for a large
job. Approximately 40 percent of the products of the paint industry
are sold to industrial or other large users and it is likely that the price
trends and levels are not the same as those on sales to the small home-
building or repair trade. The organized buying power of large pur-
chasers gives them a decided advantage in price over the average
customer.
Zone Delivered Prices.
Common practice for large manufacturers selling Nation-wide is
to divide the area into zones, and to quote delivered prices, full
freight allowed, to every "distribution center" included in each zone.
"Distribution centers" are cities selected by the manufacturer, in each
zone, for the location of a warehouse or a factory. Delivery is made
to any point in these cities without extra charge. When sales are made
in a locality having no warehouse, shipment is made from the nearest
warehouse, freightwise, and the buyer pays the freight costs. Ware-
house locations are selected by each large manufacturer and not all
firms use the same distribution centers. However, if any paint manu-
facturer has a factory or warehouse in a locality this point is considered
a distribution center for all companies who sell there, freight being
equahzed with the nearest competitive distribution point. One large
manufacturer reported that all the cities included in this survey were
distribution centers for his firm.
The zones, wherein delivered prices at jobbing centers are uniform,
are not the same for all firms. The zones for each of the firms with
Nation-wide distribution follow a general pattern to a certain extent.
The base zone includes the States in the Middle Atlantic and East
North Central areas; the second zone, the States around the edge of
the base zone, and in some cases all the South Atlantic and New
England States; and the third zone, the remainder of the south and
southwest areas and part of the West North Central. Zone four is
usually the Rocky Mountain States. The three States on the west
coast are not included in the fourth zone. Because factories are
J 26 OONi:!ENTRATION OF ECONOMIC POWER
located there, the west coast States are usually considered a base or
first zone, but certain manufacturers place them in the second or
third zones.
The difference in base prices between zones is usually 5 to 7 cents
per gallon. That is, zone 2 would be 5 cents above zone 1; zone 3,
10 cents above; and zone 4, 15 cents above, etc. The differential
between these warehouse prices by zones varies with the different
producers, and occasionally varies between the different liquid paint
products.
Some medium-sized producers quote prices f. o. b. destination, with
full freight allowed or freight prepaid. The usual minimum shipment
under this plan is 100 pounds. These producers sell on what approxi-
mates a regional basis, and by the above methods achieve uniform
delivered costs at every destination in their sales area.
Some small plants quote a straight f. o. b. plant price and make no
attempt to equalize delivery costs. Companies using this method
usually have a small sales area.
Of the 29 manufacturers from whom prices were obtained for this
survey, 7 have multiple bases or zones with freight allowed in each
zone, 17 use one base price with full freight allowed to every destina-
tion, and 5 quote prices f. o. b. plant with no freight allowance.
Channels of Distribution.
There is no uniform method of distribution established in the paint
industry. The size and importance of the producer and his volume
of sales determine to a considerable extent the system used in the
distribution of the product. Many of the smaller manufacturers dis-
tribute a large part of their volume direct to the retail outlet. On the
other hand, the largest manufacturers generally sell their products to
both company-owned and independent wholesale distributors. These
concerns, located at strategic points, stock large quancities of paints
and serve as the manufacturer's representatives in their regions. The
distributor sells to the dealers and jobbers who in turn service the
retail outlets, hardware stores, etc., the paint contractors, as well as
the general trade.
According to information developed by American Paint Journal,
Inc., the chief source of supply for the painter is the retail store. In a
survey of 5,500 painting contractors, the following distribution of
purchases was revealed: 66 percent buy exclusively from retail
dealers and 12 percent buy exclusively from manufacturers; 75 percent
buy wholly or in part from retail dealers and 20 percent buy wholly or
in part from manufactuiers.*
Method of Pricing.
Paint manufactm*ers do not, in general, attempt to set the retail
price to either the individual consumer or to the painter. Some
manufacturers "suggest" a retail price or publish letail lists, but it is
reported that there is considerable deviation from these lists at retail.
The paint manufacturer operates primarily from one or more price
lists. He sells exclusively, or to all, or to combinations of the following
classes of buyers: "Regional distributors;" wholesalers, dealers, and
jobbers; retA,ilers; painting contractors; and over-the-counter trade
in his own retail stores. One practice is to publish a list of retail
'Data prepared by Mr. H. A. Nagel, research director, American Paint Journal Co.
CONCENTRATION OF ECONOMIC POWER 127
buyers and announce discounts to the various types of distributors
off the retail price. Other methods involve the publishing of several
lists of which the following are examples:
(1) List to the retailer: 10 percent off to jobber.
(2) List to the consumer trade: 25 percent off to retail dealer.
(3) List to the dealer.
(4) List to the consumer trade:
20 percent off to dealer.
20 percent and 12}^ percent off to jobber.
One large manufacturer has in effect the following range of prices
on his product:
Per gallon
Trade $3. 70
Painter 3. 33
Dealer . 2. 60
Distributor. _ 1. 95
On the basis of these prices, the distributor receives on sales to dealers
25 percent, to painters 41 percent, and direct-to-the-trade 47 percent.
The dealer has a working margin of 30 percent on sales to the retail
consumers and 22 percent on sales to painters.*
Quantity and Other Discounts.
Volume and quantity discount practices are not uniform among the
manufacturers. Certain producers maintain a complex structure of
discounts based on quantities sold. Others have a uniform discount
on all purchases. The trend during the last 5 years, however, has
been away from the quantity discount plan in favor of a straight
discount on all purchases. The Robinson-Patman Act of 1936 was,
of course, a primary factor in changing the volume discount structures.
The quantity and volume discount practices described below for
two large manufacturers exemplify the changes which have taken
place in the industry over the last few years. Prior to 1936, one of
these companies had a profit-sharing scheme which amounted in
reality to volume discounts. Up to that time dealers were given a
sliding scale of discounts for volume purchased in a period of 1 year.
(Average discounts amounted to between 6 and 7}^ percent.) Paints
were sold to the dealers at net prices less only the cash discount. In
December of 1936 the company interpreted the Robinson-Patman
Act as outlawing the profit-sharing arrangement and it was discon-
tinued. In its place, order-quantity discounts were allowed to dealers.
For instance, a dealer purchasing in one order for shipment at one
time and to one destination, a quantity of 11 gallons or less, received
no discount; from 12 to 35 inclusive, 5 per cnt was allowed; there
was a sliding scale of reductions up to a maximum of 10 percent
which was granted on orders of 84 gallons or more. (The company
estimates that the average discount for quantity given on all dealers'
purchases under this arrangement was 1%. percent.) In October
1939, the company changed from the order-quantity to the regular
list price less a flat 10 percent.
Another large company, prior to January 1938, quoted net prices
to all dealers and gave annual rebates on a sliding scale, according to
* These t>erceDtages are computed from the selling price in each case.
128
OONCENTRATION OF ECONOMIC POWER
the volume of purchases. On that date, the company started quoting
order discounts as follows:
Quantity
Discount
(percent)
Quantity
Discount
(percent)
Less than 24 gallons
0
6
8
84 gallons and over
Carlots -
10
24 to 47 gallons
14
48 to 83 gallons
Dealers operating as distributors ordinarily received a functional
discount of from 7}^ to 10 percent on the quantity bought for resale
to other dealers. In September 1939 the order discount plan was
discarded for a volume discount arrangement. Figured on a 3 -year
average, dealers whose annual purchases amount to less than $500
receive a 5 percent discount. Dealers whose purchases total more than
$500 are eligible for two 5 percent discounts. Carlot buyers receive
an additional 5 percent.
The usual payment terms are 2 percent discoimt for cash in either
10 days or by 10th proximo, net either 30 or 60 days.
Paint prices are subject to change without notice. The manufac-
turer does not guarantee the level of future prices, as is done in certain
other industries. Sales generally are made for spot or prompt deUvery.
PRICE LEVELS AND TRENDS
Paint is a relatively unstandardized cormnodity, produced by a
large number ol manufacturers, and wholesale price levels are not the
same for all companies. Due to the zone system, any change in base
price by a producer selling throughout the country automatically
changes the price by the same amount anywhere in the United States.
However, a change in freight rates may afTect the price in non-ware-
house cities when the base price is unchanged. The large manufac-
turers do not, as a rule, change prices simultaneously, and the smaller
manufacturers may or may not vary prices in line with the larger firms.
OUTSIDE PAINT
For outside paint, wholesale price levels and trends were similar in
the nine regions of the United States from January 1935, through
September 1939. (See chart IX and tables 63 to 72.) Prices were
steady from the begmning of 1935 through August 1939, except for a
period of 4 months, December 1936, and January, February, and
March 1937, when prices averaged about 8 percent lower. In
September 1939 there was a decline of about 7 percent. These are
the only major changes affecting the price level for the period. The
changes are reflected in index numbers of paint prices in which the
base period is the average price prevailing in the third quarter of 1939.
Throughout most of the period 1935-September 1939, the price
index was at 103 percent of this average.
Retail prices for outside paint were not as constant as wholesale
prices and differed in various regions to a greater extent. On the
whole, however, they varied within narrow margms. In certain
regions there were only minor price fluctuations and there was no
significant response in any part of the country to the dip in wholesale
prices which occurred at the beginning of 1937.
CONCENTIIATION OF KCONOMK" POWER
129
CnART IX
OUTSIDE HOUSE PAINT
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 » 100
'NOEX UNITED STATES - Wtlghttd A»«roa» Pflc«
^
aiTAit.
II f
1
I
J^WHOl
SALl
\
REGION I- NEW ENGLAND
^
(l£T«iL '
REGION XC
MIDDLE ATLANTIC
««.
HI
1
1
f ■
WHOLt»»UH
1
1
REGION HI - EAST NORTH CENTRAL
1
1
-""-^s
i 1
1
REGION IE- WEST NORTH CENTRAL
•HOlCS*lE
^t/^^
I93S IS3S 1937 I9J8 1939 1940 1941
UIIJTEO ST»TES BuBEAU Of lABOB statistics
REGION a: - SOUTH ATLANTIC ""'^*
•MOLCtALE
^^4
\
1 /
«rr«iL 1
J
REGION Sr - EAST SOUTH CENTRAL
1 wnOL
SAie
— ^
—0^
1
BtTAI
f^"
REGION 301 ■ WEST SOUTH CENTRAL
«HOL
S^
XI_ •
1
r"
^•CTA
. \
REGION Xm
- ROCKY MOUNTAIN
»HOL
i'^
W^S
ftCTA
^>-i
]r
^
REGION
ir - (
>ACIFIC
1
_ _L '
I
RETAIL 1
J
I
i
I93S 1936 1937 1936 1939 1940 1941
130
OONCENTRATION OF ECONOMIC POWER
From 1935 to September 1939, prices varied within a range of 2
percent in the South Atlantic and East South Central States, and on
the Pacific coast. Four other regions — New England, the East North
Central, West South Central, and Rocky Mountain — changed less
than 3 percent, with minor fluctuations. Changes were most fre-
quent in the West North Central States, where there was a sharp rise
in October 1935 from a level somewhat below that in other parts of
the country, and a succession of fractional advances in 1937, followed
by declines in 1938 and 1939. In most regions the wholesale price
drop in September 1939 was not immediately reflected in retail prices.
With regard to the comparative levels of wholesale and retail
prices, wholesale paint prices in 1935 were about 3 percent above the
level of late 1939. At retail, in four of the nine regions paint was
selling at an average below the level of late 1939 (less than 1 percent
below except in the West North Central where it was 4 percent
below) while in the remaining five regions it was selling slightly
above that level. The third quartet of 1939 is the base period used
in the Bureau of Labor Statistics' indexes of building material prices
presented in chart IX and tables 63 to 72.
Table 63.- — Outside house paint
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February .-
March
April
May
June..
July
August ---
September
October
November..
December
1930
January
February
March
April
May..
June..
July...
August -
September
October
November
December
1937
January
February
March
April
May.
Index
Whole-
sale
Retail
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.3
102.6
104.6
102.6
104.6
102.6
104.6
102. f.
104.6
102.6
104.6
102.6
104.6
102.6
104.7
102.6
104.7
102.6
104.7
102.6
104.7
102.6
104.7
102.6
104.7
102.6
104.4
102.6
104.4
94.0
104.5
94.0
104.7
94.0
104.7
94.0
104.7
102.6
104.8
102.6
104.9
Year and month
1937— Continued
June
July
August
September
October
November... .-.
Dec mber
1938
January
February
March
April
May.. -.
June
July
August
September ..-.
October
November...
December
1939
January
February
March
April
May
June
July
August
September.
Index
Whole-
sale
102.6
1C2.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.0
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.3
Retail
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.7
104.8
104.7
104.7
104.7
104.7
104.7
104.7
104.8
104.8
104.8
104.7
104.7
104.7
104.7
97.8
97.4
Specification: Paint, outside, white, gloss, mi.xed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC TOWER
131
Table 64.' — Outside house paint
REGION I. NEW ENGLAND
(Wholesale and retail price indexes— July-September 1939=100.01
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April
May
June.-
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
102.6
101.2
94.0
101.2
94.0
99.7
94.0
99.7
94.0
99.7
102.6
99.7
102.6
100.0
Year and month
1937— Continued
June.-
July
August.
September
October
November
December
1938
January
February . _
March
April
May
June
July
August
September
October
November
December
1939
January
February _
March
April
May
June
July -
August
September
Index
Whole
sale
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.0
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.3
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. n
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, outside, white, gloss, mixed, first quality: per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. h. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
132
OONCENTKATION OF ECONOMIC POWER
Table 65. — Outside house paint
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July . ._
August.^
September
October
November
December
1936
January.-
February
March. _
April
May
June
July
August ..
September _
October
November
December
1937
January
February..
March
April
May
Index
Whole-
sale
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
93.9
93.9
93.9
93.9
102.6
102.6
Retail
110,5
110.5
110.5
110.5
110.5
Year and month
1937— Continued
June
July
August -
September _
October
November
December
1938
January
February _
March
April
May
June
July
August
September
Octo ber
November . _ . _
December
1939
January
February
March
April
May
June -
July _.
August - . -
September
Index
Whole,
sale
102.6
102.6
102.6
102.6
102. 6
102.6
102.6
102.6
102.6
102.6
1C2.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.2
Retail
110. 5
110.5
110.5
110.5
1)0.5
110.5
110.5
110.5
110.5
lie. 5
110. 5
110.5
110.5
110.5
110 5
110. 5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
94.8
94.7
Specification: Paint, outside, white, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars' destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
133
Table 66. — Outside house paint
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March
April
\lay
June
July
August -.
September
October
November
December
1936
January
February _..
March
April
May
June
July
August
September
October
November.-
December
1937
January
February
Majch..;
Apru.
May
Index
Whole-
sale
Retail
102.6
100.2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
ICO. 2
102.6
ICO. 2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
100.2
102.6
ICO. 2
102.6
100.2
102.6
100.7
102.6
100.7
102.6
100.7
102.6
ICO. 7
102.6
100.7
102.6
100.7
102.6
100.7
102.6
100.7
93.9
100.7
93.9
100.7
93.9
100.7
93.9
101.1
102.6
101.1
102.6
101.1
Year and month
1937— Continued
June
July
August
September
October
November
December
193b
January . . _
February
March
April
May
June
July
August
September
October _ _
November
December...
1939
January
February
March
AprU
May
June
July
August
September
Index
Whole-
sale
102.6
102. 6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.2
Retail
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. U
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, outside, white, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars' destination.
Retail: Dealer to contractor, delivered to job site, city.
134 OONCENTRATION OF ECONOMIC POWER
Table 67.- — Outside house paint
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100]
Index
Year and month
Index
Year and month
Whole-
sale
Retail
Whole-
sale
Retail
1935
January.
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
94.0
94.0
94.0
94.0
102.6
102.6
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
101.0
101.0
1937— Continued
June ...
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.3
101.0
February
July.
101.6
March
August
101.6
April .
September .
101.6
May
October
101.6
June
November
101.6
July..
December
101.6
August.
1938
January..
September
October
100.9
November
February..
100.9
December
March
100.9
April.
100.9
1936
May
100.9
January
June
100.9
February..
July :
100.2
March
August.
100.2
AprU
September
100.2
May -
October
100.2
June
November..
100.2
July
December..
100.2
August
September
1939
January
October
100.2
November.
February
100.2
December.
March
April
100.2
100.2
1937
May
100.0
January..
June - .
100.0
February ..
July
100.0
March
August.
100.0
April
May. - .
September
100.0
Spi>ciflcation: Paint, outside, white, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCKXTKATION OF ECONOMIC POWER
135
Table 68. — Outside house paint
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100]
Year and month
1935
January...
February...
March
April
May
June
July
August -.
September..
October
November
December
1936
January
February...
March
April.
May
June
July.
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102,6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
102.6
99.3
94.0
99.3
94.0
100.2
94.0
100.2
94.0
100 2
102.6
100.3
102.6
100.8
Year and month
1937— Continued
June
July.
August
September
October
November
December
1938
January
February
March
April _.
May
June
July
August _ .
September
October
November
December.
1939
January
February _ .
March
April
May
June
July
August
September
Index
Whole-
sale
102.6
102.6
102.6
102. 6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102. 6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.3
Retail
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
98.4
Specification: Paint, outside, white, gloss, mixed, first quality: per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
136
OONCENTRATION OP ECONOMIC POWER
Table 69. — Outside house paint
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April -- --
May
Jane
July
August
September--
October
November- -.
December
1936
Janury
February
March
April ---
May
June ---
July
August
September. ---
October..
November
December.-
1937
January
February
March
April.. - -
May
Index
Whole-
sale
RetaU
102.5
99.1
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.6
99
102.5
99
102.5
99
102.5
99.1
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
102.5
99
94.1
99
94.1
99.8
94.1
99.8
94.1
99.8
102.5
100.5
102.5
100
Nl
Year and month
1937— Continued
June
July -.
August
September
October
November
December
1938
January - - -
February
March...
April.-
May
June
July
August
September
October
November- .'
December
1939
January
February
March
April
May
June - .
July
August - -
September -..
Index
Whole-
sale
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
lu2. 5
102.5
102.5
102.5
102.6
102.5
102.5
102.5
102.5
95.3
Retail
100.5
100.6
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.6
100.5
100.6
100.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, outside, white, gloss, mixed, first quality; per r^Hon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, cit; .
CONGBNTRATION OF ECONOMIC POWER
Table 70. — Outside house paint
REGION Vir. WEST SOUTH CENTRAL
(Wholesale and retail price indexes— July-September 1939=100.0]
137
Year and month
1935
Jiinuary
February
March
April.--
May,
June
July
August
September -
October
November.-
December-- .-
1936
January
February
March
April
May
June -
July
August
September
October
November
December
1937
January
February
March
April
May..
Index
Whole-
sale
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
94.2
94.2
94.2
94.2
102.5
102.5
Retail
101.3
101.3
101
101
101
101
101
101
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
99.0
99.0
99.0
99.3
99.3
Year and month
1937— Continued
June- --
July
August
September-.
October
November
December
1938
January
February
March
April
May
June.
July
August
September
October
November
December -
1939
January
February
March .....
April
May.-
June
July.
August
September
Index
Whole
sale
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.5
102.6
102.5
102.5
102.5
102.5
95.5
Retail
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.4
99.4
99.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, outside, white, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
138
OONCENTRATION OF ECONOMIC POWER
Table 71. — Outside house paint
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April.
May
June
July
August
September _.
October
November
December
1936
January
February
March
April.-
May
June
July
August..
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
94.3
94.3
94.3
94.3
102.4
102.4
Retail
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101.0
101,0
101.0
101.0
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
100.5
100.5
100.5
100.5
100,7
100.7
Year and month
1937- Continued
June
July
August
September
October
November
December
1938
January
February
March
April.-
May
June
July
August
September
October
November.
December
1939
January
February
March-.
April
May
June
July.
August
September.
Index
Whole-
sale
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102.4
102,4
102.4
102.4
102,4
102.4
95.5
Retail
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
100.5
100.5
100.9
100,9
100.9
98,2
Specification: Paint, outside, white, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to whole.sale dealer, f. o. b, cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
139
Table 72. — Outside house paint
REGION IX. PACIFIC
(Wholesale and retail price Indexes— July-September 1939=100.0]
f^Leai and month
1935
January
February
March •.
April
\lay ---
June
July
August
September -..
October
November
December
1936
January
February
March
April -.
May.
June
July. -
August
September
October..
November.
December
1937
January
February
March.
April
May
Index
Whole-
sale
Retail
102.6
99.8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
99
8
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
102.6
100.0
93.9
100.0
93.9
100.0
93.9
100.0
93.9
100.0
102.6
100.0
102.6
100.
0
Year and month
1937— Continued
June -.
July
August
September
October
November
December
1938
January
February
March
April..
May ^
June
July
August
September
October
November
December.
1939
January
February
March
April
May
June
July...
August
September
Index
Whole-
sale
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
95.2
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, outside, white, gloss, first quality, mixed; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, deUvered to job site, city.
140
(X)NCENTRATION OF ECONOMIC POWEE
INSIDE PAINT
Inside paint is sold at wholesale at about the same general level
throughout the country and price changes have been quite similar,
also. However, the prices of inside paint did not follow the same
trend as those of outside paint. (See chart X and tables 73 to 82.)
Prices remained unchanged from January 1935 imtil December 1936,
when there was a 7 percent drop. Then there were two small increases
between April 1936 and September 1939 when there was a decline of
slightly over 1 percent. Thus, the level at the end of 1939 was about
8 percent lower than in 1935.
The retail prices of inside paints followed changes in wholesale
prices in most regions, except for some lag, particularly after 1937.
In the price decline of early 1937 retail prices in New England were
cut 1 month later by 10 percent, and in the West North Central whole-
sale prices declined 7 percent in December 1936, while retail price
changes lagged — declining 2 percent in January 1937 and 4 percent in
July 1937. Prices in the East South Central declined 3 percent at the
end of the year. In the other regions, however, retail prices changed
very little during the entire period 1935 to 1939. Only minor fluctua-
tions were reported.
Table 73. — Inside house paint
COMPOSITE UNITED STATES AVERAGE
[Wholesaje and retail price indexes— July-September 1939=100.0]
Year and month
Whole-
sale
January
February..
March
April -.
May
June...
July
August
September-
October
November.
December..
1935
January
February-
March.
April
May
June
July...
August
September.
October. ...
November-
December..
1936
January..
February.
March
April
May
1937
Index
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
99.4
99.4
99.4
99.4
100.0
100.0
Retail
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.1
101.2
101.2
101.2
100.5
100.5
100.5
100.4
100.4
100.4
100.4
100.4
100.4
100.2
100.2
100.2
100.3
100.3
100.4
100.4
100.4
Year and month
1937.. Continued
June
July
August..
September ,
October
November
December
1938
January
February -
March
April
May -
June
July... -
August -
September
October
November
Decem ber
1939
January
February
March
April -
May
June
July..
August --
September 1
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.7
Retail
100.4
100.2
100.2
100.2
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
OONCKNTRATION OP Ki'ONOMIC TOWER
141
Chart X
INSIDE HOUSE PAINT
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
RECION g - SOUTH ATLANTIC
UNITED
STATES
-Wtighttd Av*ra«* Price
-J \
1
M
1U\/^
REGION I
- NEW
ENCLA
NO
1
^«rr»iL
1 I
>LtSALC''
REGION H -MIDDLE ATLANTIC
\
1
Ktrui/
REGION in - EAST NORTH CENTRAL
--^ I
Stholckli
1
\^«
REGION I3E-WEST NORTH CENTRAL
"^ he:
>IL
"^^
1933 1936 1937 1936 1939 1940 1941
WNpTCD STATCS bureau Of LABOR STATISTICS
1 I^WnOLCSALC
1 1 1
:r—
REGION
H - EAST SOUTH CENTRAL
/*""■
1 \
■
OLCSALC'
REGION SH - WEST SOUTH CENTRAL
1 J
1
REGION Sm
- ROCKY MOUNTAIN
\
■~-«MOLt»Al.l
1
/
REGION
ir-
PACIFIC
\
'^VMOt.CtALC
1
K
J '
I93S 1936 1937 1936 1939 1940 1941
142
OONCENTRATION OF ECONOMIC TOWER
Table 74. — Inside house paint
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August.-
September
October .^
November
December
1936
January ,
February
March
April
May
June
July
August
September.
October
November
December
1937
January
February.
March
AprU
May
Index
Whole-
sale
Retail
106.9
109.8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109
8
106.9
109.8
106.9
109.8
106.9
109.8
106.9
109.8
106 9
109.8
106.9
109.8
106.9
109.8
106.9'
109.8
106.9
109.8
106.9
109.8
106.9
109.8
99.4
109.8
99.4
101.1
99.4
101.1
99.4
101.1
100.0
101.1
100.0
100
M
Year and month
1937— Continued
June..
July. ..
August
September
October
November.-
December.
1938
January
February
March
April
May
June
July..
August
September
October
November
December
1939
January
February
March
April..
May
June
July....
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
Retail
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCKN'PUATION OF ECONOMIC I'OWKU
Table 75. — Inside house paint
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
143
Year and month
1935
January
February
March
AprU
May...,
June
July
August
September
October
November
December
1936
January
February
March..
AprU
May
June
July..
August.
September ,
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
99.4
99.4
99.4
99.4
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June
July
August
September
October.
November
December
1938
January
February
March.
April
May
June
July.
August..
September...
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.7
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
JOO.O
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mLxed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
144
CONCENTRATION OF ECONOMIC POWER
Table 76. — Inside house paint
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
AprU
May
June
July..
August
September.
October
November.
December.
January
February...
March
April
May -.
June
July
August
September.
October
November.
December.
January..
February.
March
April.
1935
1936
1937
Index
Whole-
sale
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
99.4
99.4
99.4
99.4
100.0
May 100.0
Retail
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.9
99.9
100.7
100.7
100.7
Year and month
1937— Continued
June
July..
August
September..
October
November
December
1938
January
February
March...
April..
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July.
August
September
Index
Whole-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
106.6
98.7
Retail
100.7
100.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
wo.o
100.0
100.0
100.0
100.0
100.0
loo.'a
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
145
Table 77. — Inside house paint
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 193B= 100.0]
Year and month
1935
January
February
March
April
May.
June
July....:
August
September
October
November
Decern bw
1936
January
February
March ,
April
May
June
July
August
September
October...
November
December
1937
January
February
March
April
May
Index
Whole-
sale
RetaU
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
106.2
106.9
107.6
106.9
107.6
106.9
107.6
106.9'
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
106.9
106.6
99.4
106.6
99.4
104.9
99.4
104.9
99.4
104.9
100.0
104.9
100.0
104.9
Year and month
1937— Continued
June.-
July...
August..
September
October..
November
December
1938
January
February
March
April
May
June
July
August
September .
October
November
December
1939
January
February
March .
April
May
June
July
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.8
Retail
104.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100 9
100.9
100.6
100.6
100.6
100.6
100.6
98.6
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
146
CONCENTRATION OF ECONOMIC POWER
Table 78. — Inside house paint
REGION V. SOUTH ATLANTIC
J Wholesale and retail price indexes— July-September 1939= 100.0]
Index
Year and month
Index
Year and month
Whole-
sale
Retail
Whole-
sale
Retail
1935
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8
106.8'
106.8
106.8
106.8
106.8
.106.8
106.8
106.8
99.4
99.4
99.4
99.4
100.0
100.0
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
100.5
100.5
100.5
100.6
100.5
1937— Continued
June ...
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.8
100.5
July
100.5
August
100.5
April
September
100.5
October.-
100.5
November
100.5
July
Diecember
100.5
August ---
1938
January.. .... .
September
Ortober ..
100.5
November
February .
100.5
December...
March
April -.--..
100.5
100.5
1936
May
100.5
January
.Tune ...
100.0
July
100.0
August
100.0
September
100.0
May
October
100.0
June
November
100.0
July
December
100.0
August - - -
1939
January
October
100.0
February
100.0
March
100.0
April
100.0
1937
May . . . .
100.0
June .
100.0
July
100.0
August..
100.0
April -.-
September
100.0
May -
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OP Kl'ONOMIC POWER
Table 79. — Inside house paint
REGION VI. EAST SOUTH CENTRAL
(Wholesale and retail price indexes— July-September 1939=100.0]
147
Year and month
1935
January
Febniary
March
April
May
June --
July
August
September
October
November
December
1936
January
February.
March
April
May
June -.
July
August
September
October
November
December
1937
January
February.
March
April
May
Index
Whole-
sale
RetaU
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
506.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
106.8
103.5
100.8
103.5
106.8
103.5
106.8
103.5
106.8
103.6
106.8
103.5
106.8
103.5
99.4
103.6
99.4
103.5
99.4
103.5
99.4
103.5
100.0
103.5
100.0
103.5
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
ApiU
May
June.
July..
August..
September...
October
November
December
1939
January
February
March
April
May
June
July
August-
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.8
Retail
103.5
103.5
103.6
103.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
148
CONOENTRATION OF ECONOMIC POWER
Table 80. — Inside house paint
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July --
August
September.
October
November-
December..
January
February
March
AprU
May
June
July
August
Snptember...
October
November .
December . . .
1936
1937
Whole-
sale
January.. 99.4
February - 99.4
March 99.4
April 100.0
May .-■ 100.0
Index
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
166.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
106.5
99.4
Retail
101.5
101.5
101.5
101.6
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.5
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
Year and month
1937— Continued
June...
July
August-
September
October
November
December
1938
J anuary
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
IUO.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.8
Retail
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.1
99.1
99.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 81. — Inside house paint
REGION Vin. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
149
Year and month
Jsmuary
February...
March ,
April
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
106.4
99.4
99.4
99.4
99.4
100.0
100.0
Retail
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
100.2
99.7
99.7
100.6
100.6
Year and month
Index
Whole-
sale
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March.
April
May
June -
July.-..
August.
September
October
November..
December
1939
January
February
March
April
May..
June
July
August
September...
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
Retail
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
100.5
99.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manu/acturer to wholesale dealer, f.o.b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
150
CONCENTRATION OF ECONOMIC POWER
Table 82. — Inside house paint
REGION IX. PACIFIC
[Wholesale and retail price Indexes— July-September 1939=100.0]
Year and month
1935
January..-
February
March
April
May
June- - --
July-
August
September
October
November
December.--
1936
January
February--
March
April--
May
June
July
August---
September
October -
November - -
December - - .
1937
January
February
March
April..
May
Index
Whole-
sale
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107.1
-99.4
99.4
99.4
99.4
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June
July...
August
September
October
November
December
1938
January
February --.
March-
April
May
June
July
August
September
October -.
November _ -_.
December -
1939
January
February
M arch
April- -
May
Jime
July-
August
September
Index
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
98.7
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Paint, inside, white, flat, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f.o.b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
ENAMEL
Prices for enamel have followed a very different course from those
of paint. The principal component being chinawood oil, varnish and
enamel manufacturers are more susceptible to changes in raw material
costs. In September 1935 there was an average advance of 12 percent
in the wholesale markets from the level which had prevailed for the
first 8 months of that year. (See chart XI and tables 83 to 92.)
There was then no change for over a year, until the November 1936
reduction of a little over 1 percent. An upswing began in April 1937,
followed by another increase in January 1938 and a period of stability
until September 1939, when there was another advance of about 4
percent.
As reflected by the Bureau of Labor Statistics' index, based on
the third quarter of 1939 as 100, this represents a rise from 85 percent
in January 1935 to 102.2 percent in September 1939. Wholesale
prices followed the same general pattern in all regions.
Retail prices for the various regions showed less change from 1935
to 1939 than wholesale prices. Three regions — South Atlantic, East
South Central, and West South Central — showed less than 2 percent
variation throughout the period, and the Rocky Mountain area showed
CONCENTRATION OF ECONOMIC POWER
151
fluctuations of less than 3 percent, notwithstanding a rise of 4 percent
in the latter part of 1936. The Pacific area showed no change through-
out the period. A rise occurred in the New England section, where
there was a 12 percent advance in September 1936, which was main-
tained only through the remaining months of 1936. By May 1937
prices were down 8 percent, where they remained through September
1939. Incomplete data for the Middle Atlantic area showed prices
unchanged from 1938 to September 1939. In the East North Central
region, after a period of stability through 1935, there were a series of
small advances in 1936 and 1937, a rise in January 1938, and another
in January 1939. The West North Central region differed from
othei regions by showing a 2 percent drop in October 1935 and not
advancing again until 1937, when a series of rises carried prices well up
by January 1938, with a subsequent drop in January 1939. These
changes are shown in the price indexes for enamel, based on average
prices for the third quarter of 1939 as 100.0.
Table 83. — Interior enamel
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.01
Index
Year and month
Index
Year and month
Whole-
sale
RetaU
Whole-
sale
Retail
1935
85.0
85.0
85.0
85.0
85.0
85.0
85.0
85.0
94.9
94.9
94.9
94.9
94.9
95.0
95.0
95.0
95.0
95.0
94.9
94.9
94.9
94.9
94.9
93.5
93..5
93.5
93.5
98.0
98.0
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.fi
1937— Continued
June --. ---
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.6
99.6
February
July
99.6
August
99.6
April
September
99.6
May-— - -
October
99.6
November
99.6
July
December
99.6
August -
1938
January
September
99.9
February
98
98
98
98
98
98
98
98
98
98
08
6
6
6
6
6
6
6
6
6
6
99
99
99
99
99
99
99
99
99
90
00
9
March
9
April - -
9
1936
May - -
9
June -
9
February
98
98
98
98
98
98
98
99
98
99
99
6
6
1
9
1
3
July
9
March
August -
9
April
September
0
October
0
Jane
November -
0
July -. ...
December
0
August
1939
January
98 6
September
00.9
February
98
98
98
98
98
98
98
102
6
6
6
6
6
6
6
4
90.0
December
March- -.
00.0
99.5
99.6
99.5
99.7
99.6
April --
99.0
1937
May .. - .-.-...-
100.0
June
100.0
February
March
July
100.0
August -
100.0
April.
September
100.0
May
Specification: Enamel, white, quick -drying, Interior, gloss, mixed, first quality; per gallon in gallon cans
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
152
OONCENTRATION OF ECONOMIC POWER
Chart XI
INTERIOR ENAMEL
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 » 100
IN0E« UNITED STATES- W«laMed Av«rog« Prie*
NCT
.t^
ffi^
r
J^^
UAI.I
J
REGION I
- NEW
ENGLAND
.
'"'V
n-J
1 n
r-
r
■\
J
V
REGION n - MIDDLE ATLANTIC
'
...,^
=d-
r
J^.»o
I.UM.C
J
REGION
m - EAST NORTH CENTRAL
«lT«ltv
■11—^
J*— WHOLlMLt
"T
""^ N
J
REGION m - WEST NORTH CENTRAL
90
ao
■fMlU
—J-
"T
;f^-«mo
.tSM.C
J
l»39 I93e I9ST 1996 1939 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
REGION Z - SOUTH ATLANTIC
•tTAlU
r
1
_J
REGION
m - EAST SOUTH CENTRAL
«ITA1K
r
.
J^
.UM.C
J
WEST SOUTH CENTRAL
r
=J-
iJ^HfltOlMALC
1
-J
REGION -Sm
- ROCKY MOUNTAIN
vMTilL
r
>^«
CAAI.I
-J
REGION
IX - PACIFIC
.
T.,U^
1
J^^- ■
r
1
I9}S 193* I93T 193a 1939 1940 1941
CONCENTRATION OF LX'ONOMIC POWER
153
Table 84. — Interior enamel
REGION I. NEW ENGLAND
(Wbclesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March ,
April
May
June
July
August -
September
October
November
December
1936
J.anuary
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
85.1
96.5
85.1
96.5
85.1
96.5
85.1
96.5
85.1
96.5
85.1
96.5
85.1
96.5
85.1
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96. .1
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
96.5
94.9
108.3
94.9
108.3
94.9
108.3-
93.6
108.3
93.6
103.1
93.6
103.1
93.6
103.1
98.0
103.1
98.0
100.0
Year and month
1937— Continued
June ,
July
August
September.
October
November.
December
1938
January
February
M arch.
April
May
June
July
August
September...
October
November
December
1939
January
February .:
March
Aptil
May
June.
July..
August
September..
Index
Whole-
sale
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.6
98.6
98.6
98.6
98.6
98.6
98.6
102
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Enamel, white, quick -drj'ing, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
154
OONCENTRATION OF ECONOMIC POWER
Table 85. — Interior enamel
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April...-
May
June
July...
August.--
September
October
November
December
1936
January..
February
March
April
May
June
July
August..
September
October
November..
December
1937
January
February.
March
April -.
May
Index
Whole-
sale
Retail
Year and month
1937— Continued
June..
July -
August
September
October
November
December
1938
January
February
March
April..
May
June
July..
August
September
October...,
November
December
1939
January
February..
March
April..
May ,
June
July.
August
September.
Index
Whole-
sale
97.9
97.9
97.9
97.9
97.9
97.9
97.9
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98,
102,
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Enamel, white, quick-drying, interior, gloss, mixed, first quality: per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 86. — Interior enamel
REGION in. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
155
Year and month
1935
January
February -..
March
April
May -
June
July
August
September
October
November
December
1936
January
February.
March
April
May
June
July
August...
September
October
November
December
1937
January
February
March...
April..-
May
Index
Whole-
sale
Retail
84.9
95.0
84.9
95.0
84.9
95.0
84.9
95.0
84.9
95.0
84.9
95.0
84.9
95.0
84.9
95.0
94.8
95.0
94.8
95.0
94.8
95.0
94.8
95.0
94.8
95.7
94.8
95.7
94.8
95.7
94.8
95.7
94.8
95.7
94.8
95.7
94.8
96.1
94.8
96.1
94.8
96.1
94.8
96.1
94.8
97.0
93.5
97.7
93.5
97.9
93.6
97.9
93.5
97.9
97.9
97.9
97.9
97.9
Year and month
1937— Continued
June..-
July....
August
September....
October
November
December
1938
January
February
March
April
May...
June
July...
August
September
October
November
December
1939
January
February
March
April
May
June..
July
August
September....
Index
Whole-
sale
97.9
97.9
97.9
97.9
97.9
97.9
97.9
102,
Retail
97.9
97.9
97.9
97.9
97.9
97.9
97.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
!.6
99
.6
99.
.6
99.
.6
99
.6
99.
.6
99.
.6
99.
.6
90.
.6
99.
.6
99.
.6
99.
i.6
99
Specification: Enamel, white, quick -drying, interior, gloss, mixed, £rst quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to joBsite, city.
27ri8."2 — 41— No.
156
(CONCENTRATION OF ECONOMIC POWER
Table 87. — Interior enamel
REGION IV. WEST NORTH CENTRAL
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January —
February...
March
April
May.-
June -
July-
AugUbt
September.
October —
November.
December. .
January
February..
March
April-.
May
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1936
1936
1937
Index
Whole-
sale
85.1
S.\l
85.1
85.1
85.1
85.1
85.1
85.1
94.9
94.9
94 9
94.9
93.6
93.6
93.6
98.0
98.0
Retail
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
95.5
95.6
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.1
96.6
96.6
96.6
99.3
99.3
Year and month
1937— Continued
June
July
August
September
October _
November
December _.
1938
January
February
March-
April
May
June
July...
August
September
October
November
December
1939
January
February...
March.-
April
May
June
July
August
September
Index
Whole-
sale
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
102.4
Retail
99.3
99.3
99.3
99.3
99.3
99.3
99.3
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Speciflcation: Enamel, white, quick-drying, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Tablb 88. — Interior enamel
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexea— July-September 1939=100.0]
157
Year and month
1036
January
February
March
April
May
June
July
August
September
October
November
December
1036
January...
February
March
April..
May...
June
July
August.
September
October
November
December..
1937
January
February. .1 ,
March ,
April...
May
Index
Whole-
sale
Retail
85.1
97.6
85.1
97.6
86.1
97.6
85.1
97.6
85.1
97.6
85.1
97.6
85.1
97.6
85.1
07.6
04.0
07.6
94.0
07.6
04.9
07.6
04.9
97.6
94.9
97.6
94.9
97.6
04.0
97.6
04.0
97.6
04.0
97.6
94.9
97.6
94.9
97.6
04.0
97.6
04.0
97.6
04.0
07.6
04.0
07.6
93.6
97.6
93.6
98.3
03.6
98.3
03.6
08.3
98.0
98.4
98.0
98.7
Year and month
1937— Continued
June
July
August
September
October
November
December
1038
January _._
February...
March
April...
May
June
July-
August
September...
October ._
November ...-.
December.
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
98.0
98.0
98.0
9a 0
08.0
98.0
98.0
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
08.6
98.6
98.6
98.6
98.6
102.4
Retail
09.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
100.5
Specification: Enamel, white, quick -drying, interior, gloss, mixed, .Arst quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to jolTsite, city.
158
CONCENTRATION OF ECONOMIC POWER
Table 89. — Interior- enamel
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February— --
March
April
May
June
July .—
August---
September —
October —
November
December
1936
January
February
March -.
April
May —
June
July
August
September
October
November
December
1937
January
February
March
April
May
June-
Index
Whole-
sale
85.2
85.2
85.2
85.2
85.2
85.2
85.2
85.2
95.0
95.0
95.0
95.0
95.0
95. X)
95.0
95.0
95.0
95.0
95.0
95.0
95.0
95.0
95.0
93.6
93.6
93.6
93.6
98.0
98.0
98.0
Retail
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
July
August
September
October
November
December
1938
January
February -
March
April
May -
June
July - -
August
September
October _
November.. -
December
1939
January - -
February -
March
April ..--
May
June -
July-
August
September
Index
Whole-
sale
98.0
98.0
98.0
98.0
98.0
98.0
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
102.4
Ketail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Enamel, white, quick-drying, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
159
Table 90. — Interior enamel
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1930=100.01
Year and month
1935
January
February
March
April
May
June -
July
August
September
October
November
December
1936
January
February
March
April-
May -
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
85.5
85.5
85.5
85.5
85.5
85.5
85.6
85.5
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
93.8
93.8
93.8
93.8
98.0
98.0
Retail
101.5
101.5
101.5
101.6
101.6
101.5
101.5
101.5
101.5
101.5
101.6
101.5
101.5
101.5
101 5
101.6
101.5
101.5
101.6
101.5
101.6
99.5
99.6
99.6
99.5
99.5
99.5
99.5
99.6
Year and month
1937— Continued
June -
July
August
September
October
November
December
1038
January
February
March
April
May
June
July
August
September
October
November
December
1939
January _
February
March
April
May
June..
July....
August
September.
Index
Whole-
sale
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
102.3
Retail
09.6
99.5
09.6
90.6
00.6
99.6
99.6
00.5
99.5
99.6
99.6
99.6
99.6
99.6
99.6
90.6
99.4
99.4
99.4
100.0
100.0
100.0
100.0
100. tf
100.0
100.0
100.0
100.0
Specification: Enamel, white, quick -drying, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
160
aONCENTRATION OF ECONOMIC POWER
Table 91. — Interior enamel
REGION Vin. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January —
February...
March
AprU..
May
June
July
August
September -
October
November.
December..
January..,.
February...
March
April
May
June
July
August
September.
October
November.
December . .
January..
February.
March
April
May
1935
1936
1937
Whole-
sale
Index
85.6
85.6
85.6
85.6
85.6
85.6
85.6
86.6
95.1
95.1
95.1
95.1
95.1
96.1
96.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
93.8
93.8
93.8
93.8
98.0
98.0
Retail
97.6
97.5
97.5
97.6
97.5
97.6
97.6
98.1
98.1
100.6
100.6
100.6
100.5
100.5
100.5
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
Year and month
June.
July
August
September.
Qctober
November.
December.
1937— Continued
January
February...
March
April
May
June.
July
August
September.
October
November.
December..
1938
January
February...
March..*..
April
May
June
July
August
September.
1939
Whole-
sale
Index
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
102.3
Retail
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
99.3
99.3
99.3
.3
.3
99.3
99.3
99.
99.3
99.3
99.3
99.3
100.0
100.0
100.0
100.0
100.0
Specification: Enamel, white, quick -drying, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 92. — Interior enamel
REGION IX. PACIFIC
[Wholesale and retail price Indexes— July-September 1939=100.0]
161
Year and month
Whole-
sale
1936
January
February
March
April..
May
June
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August..
September
October
November
December
1937
January ,
February
March
April
May
Index
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
93.5
93.5
93.5
93.5
97.9
97.9
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
loao
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
Whole-
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April..
May
June
July
August
September
October
November
December
1939
January
February..
March...
April.
May
June
July
August
September
Index
97.9
97.9
97.9
97.9
97.9
97.9
97.9
9&6
98.6
98.
102,
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
loao
Specification: Enamel, white, quick -drying, interior, gloss, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
Xg2 CONCENTRATION OF ECONOMIC POWER
VARNISH
As in the other paints, wholesale prices of varnish follow the same
general trend for all regions. (See chart XII and tables 93 to 102.)
Because of the raw materials used the price of varnish, hke enamel, is
more sensitive to raw material price changes. After a period of
stabihty in the first 8 months of 1935, there was an advance of 12
percent in September, and no further change again until December
1936, when a shght rise of about 2 percent was sustained for 4 months.
There was then no change until January 1938, when there was a rise
of less than 1 percent. In September 1939, however, there was an
increase of 5.8 percent. Thus, as reflected in the Bureau's indexes,
based on the third quarter of 1939 as 100, there was a net rise from
87.4 percent of that average in 1935 to 103.9 percent in September
1939.
Notwithstanding these changes in wholesale prices, retail prices
for four regions — Middle Atlantic, East North Central, West North
Central, and South Atlantic — remained practically unchanged for the
period, the variation in each area being less than 2 percent. The
New England, East South Central, and West South Central regions
showed trends opposite to the wholesale series for the first 3 years
covered by the survey. In each of these regions, prices were relatively
high rather than low, through 1935 and 1936, and were followed by a
series of reductions in 1937, at a time when wholesale prices were
advancing. From that time on, no important changes occurred to the
end of 1939. In the Rocky Mountain area, retail prices increased
about 8 percent in the last half of 1935; and there have been no impor-
tant changes since that time, while on the Pacific coast prices rose
sUghtly in October 1935 and again in July 1938.
CONCENTRATION OF 1X:ONOMIC POWER
163
Chabt XII
INTERIOR VARNISH
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 = 100
REGION Z - SOUTH ATLANTIC
4
7^13
■MOLCMLC
REGION I- NEW ENGLAND
REGION XH - EAST NORTH CENTRAL
REGION 3Z- WEST NORTH CENTRAL
K^o
— ^
K"'
1
J
^~^^»H01C»«U
REGION H-
MIDDLE ATLANTIC
• ETAIL
/
f
-L
nLOUx
KtTllL
1
J
"X^^^
—J
1
BTTAtL
1
J
\!m
n-ttULt
—1
I93S 1936 1937 1938 1939 1940 1941
UNITCO STATES BUREAU OF LABOR STATISTICS
--4!:^
AIL
/_
J
■^l "CLtSALt
REGION 3ZX ■ EAST SOUTH CENTRAL
^
tq
"■
_r
^^
"^^WMOLESALE
REGION
3nr - WEST SOUTH CENTRAL
=^
-^
J-
^WHOLESALE
REGION yUL ■ ROCKY MOUNTAIN
a
tlAlL
^ 1
■B£r
d
"•WMOLfSALC
REGION IE - PACIFIC
/
-r
-W=
^•tTAl
LSJ
1
1935 1936 I93T 1936 1939 1940 1941
164
aONCENTRATION OF ECONOMIC POWER
Table 93. — Interior varnish
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February.
March.-
April
May
June
July
August...
September
October
November
December
1936
January...
February
March
April
May
June
July
August
September.
October
November.
December
1937
January
February
March
AprU
May
Index
Whole-
sale
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
97.5
97.6
97.5
97.5
97.6
97.5
97.5
97.5
97.6
97.6
97.6
97.5
97.6
97.5
97.5
99.7
99.7
99.7
99.7
97.6
97.5
Retail
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.3
100.3
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.5
100.5
100.5
100.5
100.0
100.0
Year and month
1937— Continued
June
July
August ,
September.
October
November.
December
1938
January
February
March
April
May.. 2
June
July
August
September
October
November...
December
1939
January
February
March
April
May
June...
July-...
August
September
Index
Whole-
sale
97.5
97.6
97.5
97.5
97.5
97.5
97.5
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
103.9
Retail
100.0
100.0
100.0
100.0
99.7
99.7
99.7
99
100.
Specification: Varnish, interior, mixed, first quality ; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
CONCENTRATION OF ECONOMIC POWER
165
Table 94. — Interior varnish
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1933
January
February
March
April
May
June
July..
August
September
October
November
December
1936
January
February
March
April
May
June
July
August-..
September
October
November
December
1037
January
February..
March
April
May
Index
Whole-
sale
RetaU
87.6
107.7
87.6
107.7
87.6
107.7
87.6
107.7
87.5
107.7
87.6
107.7
87.6
107.7
87.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
97.6
107.7
99.7
107.7
99.7
102.2
99.7
102.2
99.7
102.2
97.6
102.2
97.6
100.0
Year and month
1937— Continued
June
July
August...
September.
October
November
December
1938
January
February
March
April
May
June
July...
August
September
October
November
December
1939
January
February
March
April
May
June
July
August..
September
Index
97.6
97.6
97.6
97.6
97.6
97.6
97.6
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
103.8
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
166
CONCENTRATION OF ECONOMIC POWER
Table 95. — Interior varnish
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January -
February
March
AprU..
May.
June..-
July
August —
September
October
November
December
1936
January
February
March
April...
May.--
June
July....
August
September...
October.-
November
December..-
1937
January
February
March
April
May
Index
Whole-
sale
87.3
87.3
87.3
87.3
87.3
87.3
87.3
87.3
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.6
97.5
99.6
99.6
99.6
99.6
97.5
97.5
Retail
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June.
July...
August
September -..
October
November
December
1938
January
February -.
Manh
April. -
May .-
June
July..-.
August
September
October. ... -
November. - -
December . -
1939
January .
Febru ary
March
AprU
May .
June
Ju>y..
August-
September
Index
Whole-
sale
97.5
97.5
97.5
97.5
97.5
97.5
97.5
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
103.9
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF IX^'ONOMIC POWKU
167
Table 96. — Interior varnish
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September
October..-
November
December
1936
January
February..
March
April
May.
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
87.3
87.3
87.3
87.3
87.3
87.3
87.3
87.3
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
99.6
99.6
99.6
99.6
97.5
97.5
Retail
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.0
100.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July..-
August
September
October
November
December
1939
January
February
March -.1
April _
May
June
July
August
September
Index
Whole-
sale
97.5
97.5
97.6
97.5
97.5
97.5
97.5
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
103.9
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
168
aONCENTRATION OF ECONOMIC POWER
Table 97. — Interior varnish
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939°° 100.0]
Year and month
1935
January
February
March
April
May
June
July _
August.
September
October
November
December...
1936
January
February
March
April.-
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
87.5
100.6
87.5
100.6
87.5
100.6
87.5
100.6
87.5
100.6
87.5
100.6
87.6
100.6
87.5
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
97.6
100.6
99.7
100.1
99.7
100.1
99.7
100.1
99.7
100.8
97.6
99.2
97.6
99.2
Year and month
1937— Continued
June
July
August..
September
October
November
December ^...
1938
January
February...
March
April
May
June...
July
August -.
September
October
No vember .'
December
1939
January
February
March
April
May
June
July..
August
September
Index
Whole-
sale
97.6
97.6
97.6
97.6
97.6
97.6
97.6
98.3
98.3
98.3
98.3
98.3
98.3
98.3
9S.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
103.8
RetaU
99.2
99.2
99.2
99 2
99.2
99.2
99.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 98. — Interior varnish
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
169
Year and month
1935
January
February
March...
April
May
June
July
August ,
September
October
November ,
December
1936
January
February
March
April..
May
June
July
August
September
October
November
December
1937
January
February
March
AprU
May
Index
Whole-
sale
87.5
87.5
87.5
87.5
87.5
87.5
87.6
87.5
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
99.7
99.7
99.7
99.7
97.6
97.6
Retail
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
100.3
100.3
100.3
100.3
100.2
Year and month
1937— Continued
June
July __-
August
September. ,
October
November.
December
1938
January
February
March
April....
May
June
July...
August -.
September
October
November
December _
1939
January.
February
March
April
May
June
July
August
September
Index
Whole-
sale
97.6
97.6
97.6
97.6
97.6
97.6
97.6
3
3
3
3
3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
103.8
Retail
100.2
100.2
100.2
100.2
100.2
100.2
100.2
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
101.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans .
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
170
CONCENTRATION OF ECONOMIC POWER
Table 99. — Interior varnish
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April--
May
June
July
August
September.
October
November-
December..
January
February.-.
March
April.
May
June
July- -.
August
September.
October
November-
December..
January . .
February.
March
April
May
1935
1936
1937
Whole-
sale
Index
99.7
99.7
99.7
97.6
97.6
Retail
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
7
7
7
7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
08.7
;. 7
;. 7
1.7
02.9
02.9
Year and month
1937— Continued
June
July
August
September
October
November
December.
1938
January
February
March
Apnl
May
June
July
August
September
October....^
November..'
December
1939
January
February
March
April _
May .
June
July
Aqgust
September
Index
Whole-
sale
97.6
97.6
97.6
97.6
97.6
97.6
97.6
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
103.8
Retail
102.9
102.9
102.9
102.9
102.9
102.9
102.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
171
Table 100. — Interior varnish
REGION Vn. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January...
February
March
April •-
May
June
July.
August
Septembo-
October
November
December
1936
January
February
March
April
May
June
July
August -.
September
October
November
December
1937
January
February
March ,
April
May
Index
Whole-
sale
Retail
87.8
107.4
87.8
107.4
87.8
107.4
87.8
107.4
87.8
107.4
87.8
107.4
87.3
107.4
87.8
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
97.6
107.4
99.7
107.4
99.7
107.4
99.7
107.4
99.7
107.4
97.6
104.4
97.6
104.4
Year and month
1937— Continued
June
July..
August
September.-
October
November
December
1938
January
February
March
April.
May
June
July
August
September.
October
November
December
1939
January
February...
March
April
May
June
July
August.
September
Index
Whole-
sale
97.6
97.6
97.6
97.6
97.6
97.6
97.6
98.3
98.3
98.3
98.3
98.3
98. 3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
98.3
103.7
Retail
104.4
104.4
104.4
104.4
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.5
99.5
99.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
0. D. cars destination.
Wholesale: Manufacturer to wholesale dealer, t.
Retail: Dealer to contractor, delivered to Job site, city.
a70332— 41— No. St
172
CONCEXTKATION OF ECONOMIC POWER
Table 101.- — Interior varnish
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July- September 1939=100.0]
Year and month
.January _
February
March-. _..
April
May
June
July
August
Sei)tember. ._.
October
November
December.
19:^6
January
February
March..
April.
May
June
July..
Ausust
September
October
November
December. ...
1937
January
February
March
April
May
index-
Whole-
sale
Retail
87.9
93.7
87.9
93.7
87.9
93.7
87.9
93.7
87.9
93.7
87.9
93.7
87.9
93.7
87.9
98.1
97.7
98.1
97.7
100. 5
97.7
100.5
97.7
100.5
97.7
100.5
97.7
100:5
97.7
100. 5
97.7
100.2
97.7
100.2
97.7
100.2
97.7
100.2
97.7
100.2
97.7
100.2
97.7
100.2
97.7
100.2
99.7
100.2
99.7
100.2
99.7
100.2
99.7
100.2
97.7
100.9
97.7
100.9
Year and month
1937— Continued
June
July
August
September
October
November
December
January
February...
March
April.
May
June
July
Aufrust
September-
October
November.
December
1938
January ..
February..
March
April
May
June
July .
August
September.
Index
Whole-
sale
Retail
97.7
100.9
97.7
100.9
97.7
100.9
97.7
100.9
97.7
100.9
97.7
100.9
97.7
100.9
98.3
100.9
98.3
100.9
98.3
100.9
98.3
100. 9
98.3
100.9
98.3
99.1
98. 3
99.1
98. 3
99. 1
98.3
99. ]
98.3
99.1
98.3
99.1
98.3
99.1
98.3
99.1
98.3
99.1
98. 3
99.1
98.3
99. 1
98.3
100. 0
98.3
100.0
98,3
100.0
08.3
100. 0
103. 7
100. 0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholfsale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
173
Table 102. — Interior varnish
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June.
July - —
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September.
October
November
December
1937
January
February
March
April
May
Index
Whole
sale
87.3
87.3
87.3
87.3
87.3
«7.3
87.3
87.3
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.6
97.5
97.5
97.5
97.5
99.6
99.6
99.6
99.6
97.5
97.5
fietail
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
97.0
97.0
97.0
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7-
96.7
96.7
Year and month
1937— Continued
Jime
July - ----
August. - --
September
October
November
December
1938
January
February
March
April
May
June
July --
August
September
October
November.
December..
1939
January
February
March.
April
May.
June...
July
August
September
Index
Whole-
sale
97.5
97.5
97.5
97.5
97.5
97.5
97.5
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
98.2
9«. 2
98.2
98.2
98.2
98.2
98.2
98.2
103.9
Retail
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
%. 7
96.7
96.7
96.7
99.5
99.5
99.5
99.5
99.5
99.6
99.5
99.5
99.5
99.5
99.5
99.5
100.0
100.0
100.0
Specification: Varnish, interior, mixed, first quality; per gallon in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER IX
WHITE LEAD
DESCRIPTION OF THE INDUSTRY
The oldest known white pigment, white lead, is commonly used
m high grade exterior paints in combination with zinc oxide and
extenders.' It is also used extensively in combination with linseed oil
and turpentine by painters who mix on the job.
In 1937, 144,313,029 pounds of white lead were produced in the
United States, valued at $9,450,759. This constituted about 50
percent of the total value of products classified by the Bureau of the
Census as "Paints in Paste Form."^ In 1935, 90.6 percent of the
value of all white lead sold was produced by the four largest firms.
PRICE STRUCTURE
White lead is sold almost exclusively through the dealer channel to
painters. It is marketed in kegs of 100, 50, 25, and 12% pound weights.
A one-fourth cent differential is maintained for each successively
smaller quantity. The majority of sales are in 100-pound kegs.
Most paint dealers in the country have an agency contract with one
or another of the large white lead producers. The agency contract
provides for sales on a consignment basis, with payment to the
manufacturer being made as the product moves from the shelves of
the dealer, and with retail prices determined by the producing com-
pany. Price lists are furnished by the manufacturer.
With fixed differentials between prices paid by dealers, painters,
and "over-the-counter" trade, and prices enforced through the agency
contract, wholesale prices are set on a zone basis. With prices uni-
form throughout each zone, differentials between zones vary from
one-eighth cent to 1}^ cents.
PRICE LEVELS AND TRENDS
Geographical Differences.
In September 1939, all wholesale prices in the cities studied were
within a range of 9% and 10% cents per pound. Retail prices ranged
from 11^4 to 12% cents per pound.
Twenty of the 50 oitips were in "par" zones, where the wholesale
price of 9K cents prevailed. Prices at wholesale were 10 cents or less
in 45 of the 50 cities. In the 20 cities in "par" territory, the retail
price was 11)^ cents. In 41 cities, the retail price was 12 cents or less.
Highest prices both at retail (12% cents) and wholesale (10% cents)
were found in certain cities in the Rocky Mountain area.
' Any colorless pigment that gives relfttively low opacity when ground in oil.
' Census of Manufactures, 1937: "Paints, pigments, and varnishes," p. 735.
175
176
CONCEiNTRATION OF ECONOMIC POWER
In all but 8 cities, a 2 cent per pound mark-up was provided for
dealers on sales to painters. In the remainder, dealers enjoyed a
2K cent mark-up per pound. Stated in percentage terms, the mark-up
varied between 19 percent and 26 percent. The most typical whole-
sale price was 9% cents per pound and the most typical retail price was
11 }4 cents per pound. The typical mark-up was 2 cents, or 22 percent.
No significant geographical differentials either in price levels or
margins were apparent as of September 1939. Averages for the
individual regions varied between 9}^ and 10)^ cents per pound at
wholesale and 11}^ and 12% cents per pound at retail. Price mark-ups
varied between 20 percent and 26 percent. The highest prices and
highest margins appeared in the Rocky Mountain and Pacific regions.
Regions
Average of typical
prices
Difference
Wholesale
Retail
Cents
Percent
.$0. 0925
.0925
.0925
.0941
.0943
. 0950
.0980
.1016
.0975
$0. 1125
.1125
.1125
.1141
.1143
. 1150
.1180
.1241
.1225
$0.0200
.0200
.0200
.0200
.0200
.0200
.0200
. 0225
.0250
21.6
II. Middle Atlantic .^
21.6
III. East North Central
21.6
IV. West North Central
21.3
V. South Atlantic .
21.2
VI. East South Central
21. 1
VII. West South Central
20.4
VIII. Rocky Mountain
22.1
IX. Pacific
25.6
United States
.0956
.1163
.0207
21.7
Wholesale and Retail Price Trends. (See chart XIII and tables 103
to 112.)
Between 1935 and September 1939 (based on July-September
1939 = 100), the national composite index of the wholesale price of
white lead fluctuated between 108 in the spring of 1937 and 89 in the
spring of 1938. From 93 in January 193t5, there was a minor decline
(»arly in 1935, a compensating recovery early in 1936. In the winter
of 1936 and spring of 1937, prices advanced rapidly by 14 percent to
a liigh of 108 for the peroid. Prices broke in August 1937 and a series
of sharp reduction brought the index down to 89 in the spring of 1938,
a decline of 18 percent. In the fall of 1938 and the early months of
1939, the price advanced 12 percent to a level which held through
September of that year. Wholesale and retail prices in all regions
followed the same general pattern.
CONCEXTRATlUN OF ECOiNOMIC POWER
177
Chaet XIII
WHITE LEAD
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
REGION 3: - SOUTH ATLANTIC
A
1 1
I 1
^
\J
>~
1
REGION X- NEW ENGLAND
1
rs
^^^^«T«IL ;
n \
I M
\ ,
kWi
j N«»iotes*LC I [
n£6ION H - MIODLE ATLANTIC
'A
^^B.. Kjt^
REGION in - EAST NORTH CENTRAL
. ____LJ. J__J
! A
1
feEP Xj"^^
j
1 ■ 1 1
1
no
REG.ON TT -
WEST NORTH
CENTRAL
; ; ' 1 1 i
! f
\ I
! i
to
• 0
-f^
!
^ *"CtCiAtt
i i
l«S8 !936 I93r lyjB 039 I9fl0 19^1
omttu sTATSi bl'B£»u Or lj»:h :vn:rics
i A
t=F? \jf
^«HOUESALE i
i 1
REGION H - EAST SOUTH CENTRAL
Ul^
E
REGION Ht - WEST SOUTH CENTRAL
1
. . _ 1 ._ _
WHOLESALE-U__^ 1 1 i 1 1
A 1 ! 1 1
^,_^d
^ k p/ 1
-J
-t3-
1
REGION •PTtT . ROCKY MOUNTAIN
1
1
1
WrOLtitLC
r\
!
i
i
,
J""
?» ]
T i-'i 1 !
REGION
TZ
- PACIFIC
!
1
1
1
1 1 ' i 1
1 :r^' ! !
„K"
1 ^-^
1
V-
/^ !
1
1
1
1
1 OHOUSal-C
' i
1
t 90
I
I9j; I9S6 I9jr I9:SS 1939 1»'0 I9*l
178
OONOENTRATION OF ECONOMIC POWER
Table 103. — White lead
COMPOSITE. UNITED STATES AVEKyvGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Yf-ir and month
January
February.,.
March
April -
May
Tune
July
August
September-
October
November-
December..
1936
January
February...
March.-"-..
April
May
June
July
August
September.
October
November.
December-.
1936
Index
Whole- I
sale !
Retail
93.4
93.4
90,4
90.4
90.4
90.4
90 4
90.4
90.4
90.4
90.4
90.4
90.7
90.7
90.7
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
94.8
1937
January --- | 99.7
February 99.7
March 108.1
April 108.1
May 108.1
97.3
97.3
93.0
93.5
93.5
93.5
93.5
93.5
93.5
93.5
93.5
93.5
93,7
93.7
93.7
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
101.7
101.7
106.3
106.3
106.3
i ' ar and month
1937- -Continued
June
July
August
September
October
November
December
1938
January ..
February
March
April
May -
June '
July.
August -.-
September
October
November
December _ -
1939
January _ _
February __
March , _-
April
May
June
July _
August --
September
Index
Whole-
sale
108.1
IOS.1
108.1
107.7
103.0
102.3
102.3
94.7
94.7
90.1
89.3
89.3
89.3
89.3
89.3
89.3
94.7
94.7
94.7
94.7
94.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.3
106.3
106.3
106.3
102.5
101.9
101.9
96.0
95.4
91.3
ei.3
91.3
91.3
91.3
91.3
91.3
95.7
95.7
95.7
95.7
95.7
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
Specification: Lead, white, carbonate, in oil, first quality: per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
("ONi'KNTRATrON OF ECONOMIC POWER
Table 104. — White lead
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
179
Year and month
1935
January
February..
March
.\pril
May
June
July....
August
September
October
Nlvember
December
1936
January
February
March
April
May
June
July ,
August
September
October...
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
93.4
97.8
93.4
97.8
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
89.7
93.3
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
94.1
97.8
100.0
102.2
100.0
102.2
108.6
106.7
108.6
106.7
108.6
106.7
Year and month
1937— Continued
Jime
July
August
September
October
November
December
1938
January..
February...
March..
April
May
June.
July.
August
September
October*.
November
December...
1939
January
February... ^
March
April
May
June
July
August
September
Index
Whole-
sale
108.6
108.6
108.6
108.1
102.7
102.7
102.7
94.6
94.6
89.2
89.2
89.2
89.2
89.2
89.2
89.2
94.6
94.6
94.6
94.6
94.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.7
106.7
106.7
106.7
102.2
102.2
102.2
95.6
95.6
91.1
91.1
91.1
91.1
91.1
91.1
91.1
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lead, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
180
CONCENTRATION OF ECONOMIC POWER
Table 105. — White lead
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February..
March
April
May
June.-
July
August
September.
October
November.
December..
January
February..
March
April
May
June
July
August
September.
October
November.
December..
January. .
February.
March
April
May
1935
1936
Index
Whole-
sale
93.4
93.4
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
100.0
100.0
108.6
108.6
108.6
Retail
97.8
97.8
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
102.2
102.2
106.7
106.7
106.7
Index
Year and month
Whole-
sale
1937— Continued
June
July
August
September
October
November
December.
1938
January
February
March
April
May
June. ..
July
August
September
October
November
December.
1939
January
February
March
April
May
June.
July
August.
September..
Specification: Lead, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to reatil dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job sire, city.
108.6
108.6
108.6
108.1
102.7
102.7
102.7
94.6
94.6
89.2
89.2
89.2
89.2
89.2
89.2
89.2
94.6
94.6
94.6
94.6
94.6
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
Retail
106.7
106.7
106.7
106.7
102.2
102.2
102.2
95.fi
95.6
91.1
91.1
91.1
91.1
91.1
91.1
91.1
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100. 0
100.0
100.0
100.0
100 0
CONCRNTRATION OF EOONOMIC POWER
ISl
Table l06.~White lead
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939 = 100.0]
Index
Year and month
Index
Year and month
Whole-
sale
Retail
Whole-
sale
Retail
1935
January
93.4
93.4
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
89.7
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
100.0
100.0
108.6
108.6
108.6
97.8
97.8
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
93.3
9.3.3
93.3
93.3
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
102.2
102.2
106.7
106.7
106.7
1937— Continued
June
108.6
108.6
108.6
108.1
102.7
102.7
102.7
94.6
94.6
89.2
89.2
89.2
89.2
89.2
89.2
89.2
94.6
94.6
94.6
94.6
94.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
106.7
February
July .
106.7
March.
August
106.7
April
September
106 7
May
October
102.2
June -
November
102.2
July
December
102 2
August
1938
January
September
October
95 6
November .
February
95. G
December -..
March
91.1
April
91.1
1936
May
91. 1
January
June
91 1
February
July
91 1
March
August
91 1
April . .
September .
October
91 1
May
95 6
June..
November
December
95 0
July....
95 6
August ....
1939
January
September
October
95 G
November
February
95.6
December
March .
100.0
April
100.0
1937
May..
100.0
January
June.
100.0
February
July _ .
100.0
March
August ._
September.
1
100 0
April
100 0
May
SpeciUcation: Lead, white carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destin.ation.
Retail: Dealer to contractor, delivered to job 'ite, city.
182
CONCENTRATION OF ECONOMIC POWER
Table 107. — White lead
REGION IV. WEST NORTH CENTRAL
I Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March--
April
May -
June
July....
August ---
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December.
1937
January
February
March..
April
May -
Index
Whole-
sale
Retail
93.2
97.8
93.2
97.8
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89.9
93.4
89
9
93.4
89
9
93.4
94
97.8
94
97.8
94
97.8
94
97.8
94
97.8
94
97.8
94
97.8
94
97.8
94
97.8
100.0
102.2
100.0
102.2
108.5
106.6
108.5
106.6
108
5
106.6
Year and month
1937— Continued
June
July
August
September
October
November
December i
1938
January
February
March
April
May
June ...
July
August
September
October
November
December
1939
January
February
March
April
May
June
July .,
August -:..
September
Index
Whole-
sale
08.5
08.5
08.5
08.0
02.7
i;02.7
102. 7
94.7
94.7
89.3
89.3
89.3
8S.3
89.3
89.3
94
94.7
94.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.6
106.6
106.6
106.6
102.2
102.2
W2.2
95.6
95.6
91.2
91.2
91.2
91.2
91.2
91.2
91.2
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Speciflcation: Lead white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
183
Table 108.— White lead
REGION V. SOUTH ATLANTIC
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February ,
March
April
May
June -
July
August
September
Octobe. .
November...!
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
93.6
93.5
90.3
90.3
90.3
90.3
90.3
90.3
97.8
97.8
93.4
93.4
93.4
93.4
93.4
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
94.6
97.8
100.0
102.2
100.0
102.2
108.5
106.6
108.6
106.6
108.5
106.6
Year and month
1937— Continued
June >
July
August
September
October
November.
December
1938
January
February
March..
April
May
June
July
August
September
October..
November...
December..
1939
January
February _
March
April...
Ma?
June
July...
August
September
Index
Whole-
sale
108.5
108.5
108.5
108.0
102.7
102.7
102.7
94.7
94.7
89.3
89.3
89.3
89.3
89.3
89.3
89.3
94.7
94.7
94.7
94.7
94.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
108.6
106.6
106.6
106.6
102.2
102.2
102.2
95.6
95.6
91.0
91.0
91.0
91.0
91.0
91.0
91.0
95.7
95.7
95.7
95.7
95.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lead, white, carbonate, in oil, first quality; per pound, In kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
184
CONCENTRATION OF ECONOMIC POWER
Table 109.— White lead
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.i
Year and month
1935
January...
February
March
April
May
June.
July--. --
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November..
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
93.3
97.8
93.3
97.8
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
9.3.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
93.4
90.3
9.3.4
94.5
97.8
94.5
97.8
94.5
97.8
94.5
97.8
94. 5
97.8
94.5
97.8
94.5
97.8
94.5
97.8
94.5
97.8
100.0
102. 3
100.0
102. 3
108.5
106.6
108.5
106.6
108.5
106.6
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November. I
Decem ber
1939
January
February
March
April
May
June
July
August
September
Index
108.5
108.5
108.5
107.9
102.6
102.6
102.6
94.7
94.7
89.4
89.4
89.4
89.4
89.4
89.4
89.4
94.7
94.7
94.7
94.7
94.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.6
106.6
106.6
106.6
102.3
102.3
102.3
95.6
95.6
91.1
91.1
91.1
91.1
91.1
91.1
91.1
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Load, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail' Dealer to contractor, delivered to job site. city.
CONCENTRATION OF ECONOMIC POWER
Table llO.— White lead
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
185
Year and montb
1935
January
February...
March
April--
May
June--
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July-
-August
September.
October
November.
December-
1937
Index
Whole-
sale
94.2
94.2
92.6
92.6
92.6
92.6
92.6
92.6
92. 6
92.6
92. 6
92.6
92.6
92.6
92.6
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
January 100.0
February 100.0
March- 108.1
April 108.1
May ..! 108.1
Retail
97.9
97.9
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
102.1
102.1
106.3
106.3
106.3
Year and month
1937— Continued
June
July
August
September
October-
November
December
1938
J anuary
February
March-
.•\pril
May
June
July -_ .-..
A upust
September..
October
November .
December
1939
January- -
February -
March
April - -.
May
June _
July -
August
September-
Specification: Lead, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job ."^ite, city.
Inde.\
Whole-
sale
108.1
108.1
108.1
107.6
102. 5
102.5
102. 5
94.9
94.9
300.0
100.0
100. 0
100.0
100.0
100. 0
100.0
Retail
106.3
106.3
106.3
106.3
102.1
102.1
102.1
95.8
95.8
91.5
91.5
91.5
91.5
91.5
91.5
91.5
95.8
95.8
95.8
95.8
95.8
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
186
CONCENTRATION OF ECONOMIC POWER
Table 111. — White lead
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September ie39»» 100.0]
Year and month
1935
January
February
March. —
April
May
June -
July
August.-
September
October
November _.
December
1936
January
February... _
March
April - -.-
May -
June
July..
August-- -.
September
October
November
December
1937
January
February
March
April.
May
Index
Whole-
sale
94.6
94.6
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
98.
98.9
106.7
106.7
106.7
Retail
96.2
96.2
93.9
93.9
93.9
93.9
93.9
93.9
93.9
93.9
93.9
93.9
94.6
94.6
94.6
97.8
97.8
98.0
98.0
98.0
98.0
98.0
98.0
98.0
100.1
99.3
105.2
105.2
105.2
Year and month
Whole-
1937— Continued
June
July...-
August-
September
October
November
December -.
1938
January
February
March
April
May
June
July
August
September
October ...j
November
December
1939
January
February
March
April
May.
June
July
August
September
Index
106.7
106.7
106.7
106. 4
103.2
101.4
101.4
95.0
95.0
95.2
90.0
90.0
90.0
90.0
90.0
90.0
95.0
95.0
95.0
95.0
95.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
105.2
105.2
105.2
105.2
102.9
101.1
101.1
97.7
95.9
91. S
91.8
91.8
91.8
91.8
91.8
91.8
95.0
95.9
95.9
95.9
95.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Lead, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
CONCENTRATION OF ECONOMIC POWER
187
Table 112.— White lead
REGION IX. PACIFIC
IWhoWsale and retail price indexes— July-September 1939-100.0]
Year and month
1935
January
February.
March. ,
April
May
June
July
August
September
October
November
December
1036
January
Februfuy
March
April
May...
June
July
August
September
October
November
December
1937
January.
February
March
April
May
Index
Whole-
sale
Retail
92.3
93.9
92.3
93.9
9?. 3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
92.3
93.9
94.9
95.9
94.9
95.9
94.9
95.9
97.4
98.0
97.4
98.0
97.4
98.0
97.4
98.0
97.4
98.0
97.4
9S.0
97.4
98.0
97.4
98.0
97.4
98.0
97.4
98.0
97.4
98.0
105.1
104.1
105. 1
104.1
105.1
104.1
Year and month
Whole-
sale
1937— Continued
June
July
August
September...
October
November
December
1938
January
February
March.
April
May .
June 1
July
August
September
October
November
December...
1939
January
February
March -.
April
May
June
July
August
September
Index
105.1
105.1
105.1
105.1
105.1
100. e
100.0
94.9
94.9
94.9
89.7
89.7
89.7
89.7
89.7
89.7
94.9
94.9
94.9
04.9
94.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
104.1
104.1
104.1
104.1
104.1
100.0
100.0
100.0
95.9
91.8
91.8
91.8
91.8
91.8
91.8
91.8
96.0
96.0
96.0
96.0
96.0
100.0
100.0
100. 0
100. 0
100.0
100.0
100.0
Specification: Lead, white, carbonate, in oil, first quality; per pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
275852 — 41-
CHAPTER X
LINSEED OIL
DESCRIPTION OF THE INDUSTRY
Linseed oil is one of many products obtained irom the seed of
flax. It is the most widely sold gumming and drying agent used in
the manufacture of ready-mixed paints, and is also used extensively
by contractors who mix paints on the job.
Twenty-three establishments in the linseed oil, cake, and meal
industry employed 2,628 wage earners in 1937 and turned out products
valued at $90,000,000. In 1929, products valued at $111,000,000
were manufactured by 29 establishments. Since 1929 linseed oil
production has averaged between 60 and 72 percent of the total value
of the industry's output.^
The industry is located in three major geographical areas. In
1937 there were 'nine establishments in New York, New Jersey, and
Pennsylvania; nine in Minnesota, Illinois, Wisconsin, Ohio, and
Kansas; and five in California and Oregon. Manufacturers generally
seU to jobbers and the jobbers distribute to dealers, who service the
contracting trade. In 1935, 35 percent of linseed oil manufacturers'
sales went directly to industrial and other large users while 50 percent
passed through wholesalers and jobbers.^ The product is marketed
in gallons, barrels, drums, and tank cars of 70 drums.
PRICE STRUCTURE
In the determination of wholesale prices the country is divided into
zones. ^ Prices are uniform for all destinations within each zone;
differentials between zones are related to freight differentials. Whole-
sale prices arc quoted per pound, but in the following analysis these
have been converted to a gallon basis for purposes of comparison
with retail prices. In the following section, wholesale prices are
from manufacturer to jobber; retail prices are from dealer to painting
contractor. Hence, the spreads between the two series represent
the difference between manufacturers' prices and the prices paid by
consumers and include the allowances for distribution through two
channels, the jobbers and dealers.
' Census of Manufactures, 1937, "Oil, cake, and meal, linseed," p. 718 ff.
' Census of Business, 1935, "Oil, cake, and meal, linseed," p. 113.
J One large manufacturer uses eight zones iq pricing his product.
189
190
CONCENTRATION OF ECONOMIC POWER
PRICE LEVELS AND TRENDS
Geographical Differences in Prices * and Spreads. (See table 113.)
Wholesale and retail price levels as of September 1939, for cities
from which both wholesale and retail prices were reported, are shown
in the foDowing siunmary:
Price range per gallon
Number of
cities
Price range per gallon
Number of
cities
Whole-
sale
Retail
Whole-
sale
Retail
$0.71 to $0.75
24
24
2
6
9
$0.96 to $1
16
$0.76 to $0.80 . -.-
$1.01 to $1.05
10
$0.81 to $0.85
$1.06 to $1.10
4
$0.86 to $0.90
$1.11 ftnri above. . . . ,
1
$0.91 to $0.96
Few significant regional differentials are revealed in either whole-
sale or retail price levels. All wholesale prices fell within a range of
from 71 to 80 cents per gallon. Sixteen of the 48 cities reported retail
prices from 96 cents to $1 per gallon, the most typical range. Thirty-
one cities reported retail prices ranging from 86 cents to $1 and only
five cities showed prices in excess of $1.05 per gallon.
Retail mark-ups in linseed oil varied from 12 percent in Omaha,
Nebr., and Charleston, S. C, to 57 percent in Charlotte, N. C, and
Atlanta, Ga. In 34 of the 48 cities retail spreads were between 21 and
35 percent, the most typical group being 31 to 35 percent.
Percent mark-up
Number of
cities
Percent mark-up
Number of
cities
10tol5 . .
4
2
10
10
31 to 35 .-.
14
16 to 20
36 to 40
2
21 to 25
41 and over ..
6
26 to 30
Total
48
Regional average mark-ups varied from 24 to 35 percent. Average
spreads of 34 and 35 percent were reported in the West South Central
and the South Atlantic regions, respectively, which were also the areas
in which prices were most stable. Excluding these two areas, the
regional average spreads varied from 24 to 28 percent.
Typical
wholesale
price
Typical
retail
price
Difference
Cents
Percent
I. New England . . _- ...
$0. 7500
.7500
.7500
.7629
.7425
.7650
.7760
.7900
.8000
$0. 9567
.9300
.9550
.9514
1. 0025
.9575
1.0400
1.0063
1.0100
$0. 2067
.1800
.2050
.1885
.2600
.1925
.2640
.2163
.2100
27.6
U. Middle Atlantic •
24.0
ni. East North Central
27.3
IV. West North Central
24.7
V. South Atlantic
35.0
VI. East South Central
25.2
VU. West South Central
34.0
Vin. Rocky Mountain
IX. Pacific
27.4
26.3
United States average.-
.7644
.9821
.2177
28.5
' Linseed oil was priced per pound at wholesale and per gallon at retail.
wholesale prices were convened to a per gallon basis.
For the purpose of comparison,
CONCENTRATION OF ECONOMIC POWER 191
Price trends. (See chart XIV and tables 114 to 123.)
With costs of materials constituting 80 percent of the total value of
the product, the wholesale price of hnseed oil follows closely the price
of flax, the principal raw material. A "market" commodity, linseed
oil prices are sensitive to changes in production and in general business
conditions. With price changes reported in almost every month, the
wholesale price index for the Nation as a whole ranged from 92 to 124
(based on July to September 1939 = 100) in the period from 1935
through September 1939. In the summer of 1935 the index dropped
from 107 to 92, but climbed to 111 by the end of the year. Following
a decline to 104 in the spring of 1936, the index rose to 116 in late
summer of that year, fell to 106 in November, then resumed its
advance to the peak of 124, which it reached in April and May 1937.
The rising trend was reversed in June 1937 and a series of declines
culminated in August 1938 with a low of 91. The index then climbed
slowly until June 1939 when it hit 103. A sHght recession was
followed by a jump of 15 percent, from 94 to 108, in September 1939,
after the outbreak of war in August.
Since wholesale price differentials between zones remained constant
throughout the period, the pattern of wholesale price behavior in all
regions duplicated that for the Nation as a whole.
Retail prices of linseed oil followed wholesale prices closely in most
regions. The national trend of composite retail prices was very similar
LO that of the wholesale index but without the extreme fluctuations.
Thus, the sharp wholesale price rise in the spring of 1937 was not full}'-
reflected in the retail index; nor were the sharp increases in the spring
and winter of 1935 and in the summer of 1936 and the declines in the
summer of 1935 and the spring of 1936 as marked in th*^ retail as they
were in the wholesale markets.
The national composite, however, is affected considerably by prices
in the South Atlantic area, where the retail market was very stable.
In the Middle Atlantic, East South Central, and West South Central
areas, no adequate retail prices were obtained. In the remaining
regions, liov ever, retail indexes follow the wholesale very closely.
Although retail prices tend to fluctuate more narrowly than wholesale
prices in these regions, the tendency is not nearly so evident as in tlu^
national average.
192
CONCENTRATION OF RCONOMIC POWER
Chabt XIV
UNSEED OIL
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939=100
UNITED STATES • W«i6hltd Avaregt Pric* REGION I - SOUTH ATLANTIC
•HUULt
--«
I A.
fJOi
/v/
pr^
^KT.
A
J
^\f
1
REOION I
- NEW
ENGLAND
1
WHOLCtALC-
^fV.
J aJ^
lOrt^Nvx^™
M
ji
^
^
REOION XT -MIDDLE ATLANTIC
<
40LCULE— «-f«
1 A»».
_
lZJ" a:3 'v~
a/
-V V
\
Ji
V
V
^
1
, 1
140
REGION
m - EAST N(
)RTH C
ENTRAL
ISO
120
no
100
90
.
MlfSALt-
"^rWi-^
~tj^^
i
Apn^ 1
\
aI
Hj
V^
REOION rZ - WEST NORTH CENTRAL
-
HOUMLI
^fV.
^^/^
V.
r\i
^/^^
NllTJUt ^
~fJL.\-
' V
s^
fnf
1939 I9M 1937 1938 1999 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
WHOLESALE
I
~*»v,
a;/ 'V
\
a/-^"^ [\
Ai
VL— »
VJ"^"
— >Lf
1 V
l^rttTAlL
REGION
XI - EAST SOUTH CENTRAL
«
WlCtALt
lR-
A/J^
a}
^A^-^^-
./
'V
„j — ^rv^^
1 1
REGION
SH - WEST SOUTH CENTRAL
-
KO.E..LE-
LIV-
1 1
Ay^^
V
i
A /
-N/Vf \
.1
V\J
^-ET.,.
^-V^^
REGION -7m . ROCKY MOUNTAIN
140
130
no
110
A«
•ET»IL-^i^ £l\
A
fc^
^K/V
,/
1
-WHOLCSALC
^^^r^
90
REGION IE - PACIFIC
RETAIL J ^ ^
iW
<a><^
■^f-r^i
^^ 1
A
/KV
^ V
vJ^
^V-
VWHOLISA
X
v^p^
1
1939 1936 1937 1938 1939 1940
CONCENTRATION OF ECONOMIC POWER
193
Table 113. — Linseed oil
[Typical wholesale and retail prices for selected cities. September 1939]
Region and city
BEOIONI. NEW ENGLAND
A. Portland, Maine.
B. Manchester, N. H
C. Burlington, Vt
D. Boston, Mass
E. Providence, R. I
F. Hartford, Conn..
REGION n. MIDDLE ATLANTIC
A. NewYork, N. Y
B. Trenton, N.J
C. Philadelphia, Pa
REGION ni. EAST NOBTH CENTRAL
A. Cleveland, Ohio...-.
B. Detroit, Mich _ _
C. Indianapolis, Ind 1
E. Milwaukee, Wis
REGION IV. WEST NORTH CENTRAL
A. Minneapolis, Minn
B. Fargo, N. Dak
C. Sioux Falls, S. Dak,....
D. Des Moines, Iowa
E. Omaha, Nobr
F. Wichita, Kaas
0. St. Louis, Mo
REGION V. SOtJTH ATLANTIC
A. Wilmington, Del
B. Baltimore, Md
D. Charleston, W. Va
E. Richmond, Va
F. Charlotte, N. C
Prices
Whole-
sale
RetaU
$0.75
$0.90
.75
.99
.75
1.00
.75
.97
.75
.90
.75
.98
.75
.89
.75
1.00
.75
.90
.75
.94
.75
.95
.75
.92
.75
1.01
.75
1.02
.78
.94
.78
1.00
.75
1.03
.75
.84
.78
.93
.75
.90
.75
1.00
.75
.91
.75
1.00
.75
1.05
.70
1.10
Region and city
REGION V. SOUTH ATLANTIC— COn.
0. Charleston, S. C
H. Atlanta, Ga.
1. Miami, Fla
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky...
B. Memphis, Tenn. _
C. Birmmgham, Ala
D. Jackson, Miss
REGION Vn. WEST SOUTH CENTRAL
A. Little Rock. Ark
B. Oklahoma City, Okla
C. Austin, Tex
D. Houston, Tex
E. New Orleans, La..
REGION Vm. ROCKT MOUNTAIN
A. Butte, Mont
B. Boise, Idaho...
C. Cheyenne, Wyo
D. Denver, Colo
E. Salt Lake City, Utah
F. Reno, Nev
Q. Phoenix, Ariz
H. AlbuquerQue, N. Mex
REGION IX. PACIFIC
A. Seattle, Wash
B. Portland, Oreg
C. Los Angeles, Calif
Prices
Retail
77
.86
70
1.10
.77
1.00
75
.86
.77
.98
.77
1.00
.77
LOO
.78
1.10
.78
1.10
.78
1.00
.77
1.00
.77
1.00
.78
.96
.80
1.05
.78
.94
.78
.97
.80
1.05
.80
.91
.80
1.01
.78
1.19
.80
1.01
.80
1.01
.80
1.01
Speclflcation: Oil, linseed, raw.
Wholesale: Per gallon (converted from pound) in barrels, carlots, producer to retail dealer, f. o. b. cars
destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
194
CONCENTRATION OF ECONOMIC POWER
Table 114. — Ldnseed oil
COMPOSITE UNITED STATES AVERAGE
Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April--
May.
June
July
August
September
October
November
December
1936
January
February
March--
April.-
May
June
July
August--- —
September
October
November
December
1937
January
February
March
April
May
June
Index
Whole-
sale
Retail
98.3
98.0
100.0
98.2
104.3
99.5
104.3
99.6
106.9
99.6
105.5
100.0
101.2
99.5
95.7
98.2
92.6
101.5
104.1
102.1
104.1
102.1
111.2
103.5
108.6
103.6
108.6
103.5
108.6
103.5
106.9
102.7
104.2
102.2
104.3
101.9
112.9
106.2
115.5
107.5
107.9
106.2
107.2
104.6
105.5
104.6
111.2
105.6
112.9
105.8
111.2
104.8
112.9
105.4
124.1-
107.4
124.1
107.6
119.8
109.9
Year and month
Index
1937— Continued
July
August -.
September
October
November-—, -
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February --.
March
April
May
June
July
August
September
Whole-
sale
121.5
121.5
117. 2
119.8
117.2
111.5
112.9
111.2
198.6
106.9
102.6
95.7
95.7
91.4
95.7
96.9
94.4
93.3
95.7
95.7
98.6
98.6
98.6
102.6
98.3
94.3
108.4
Retail
109.9
111.4
111.4
110.6
110.3
109.8
109.6
109.5
108.4
103.8
102.1
97.8
97.8
96.6
97.4
97.5
96.7
98.3
98.5
98.5
99.2
99.3
98.5
98.5
97.8
98.5
101.9
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f o. b. cars destination.
Retail; Per gallon; dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWEJR
195
Table 115. — Linseed oil
REGION I. NEW ENGLAND
[Wholesale and retail price Indexes— July-September 1939-100.0]
Year and month
1935
January
February
March
AprU
May
June
July
August -
September
October
November
December
1936
January..
February
March
April
May
June.
July
August
September
October
November
December _
1937
January
February
March
April
May
June
Index
Whole-
sale
Retail
98.6
99.1
100.0
99.1
104.3
99.1
104.3
99.1
1 17. 2
99.1
Ik). 8
104.5
101.4
104.5
95.7
104.6
92. 8
104.6
105.8
104.5
105.8
104.5
111.6
104.5
108.7
107.8
108.7
107.8
108.7
107.8
107.2
107.8
104.3
107.8
104.3
101.7
113.0
101.7
115.9
101.7
113.0
101.7
107.2
101.7
105.8
101.7
111.6
101.7
113.0
106.8
111.6
106.8
113.0
106.8
124.6
111.5
124 6
111.5
120.3
114.8
Year and month
1937— Continued
July
August
September
October ._.
November
December
1938
January
February
March
AprU
May
June
July.
August -.
September
October
November
Decem ber
1939
January
February
March..
April
May .-
June
July
August-...
September.
Index
Whole-
sale
121.7
121.7
117.4
120.3
117.4
111.6
113. 0
111.6
108.7
107.2
102.9
95.7
95.7
91.3
95.7
97.1
94.2
98.6
96.7
95.7
98.6
98.6
98.6
102.9
98.6
94.2
108.7
RetaU
114.8
114.8
114.
114.
114.
114.
108.7
108.7
108.7
108.7
108.7
87.5
87.5
87.5
87.5
87.5
87.5
87. S
94.6
94.6
94.6
94.6
94.6
99.7
99.7
99.7
100.5
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retaU dealer, f. o. b. cars destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
196
CONCENTRATION OF ECONOMIC POWER
Table 116. — Linseed oil
REGION n. MIDDLE ATLANTIC
[Wholesale price indexes— July-September 1939=100.0]
Year and month
Whole-
sale index
Year and month
Whole-
sale indox
Year and month
Whole-
sale index
1936 .
Juniiftry
98.6
100.0
104.3
104.3
107.2
105.8
101.4
95.7
92.8
105.8
105.8
111.6
108.7
108.7
108.7
107.2
104.3
104.3
113.0
115.9
113.0
1936— Continued
October -.
107.2
105.8
111.6
113.0
111.6
113.0
124.6
124.6
120.3
121.7
121.7
117.4
120.3
117.4
111.6
113.0
111.6
108.7
1938— Continued
April
February
107.2
March
November
May
102.9
April
December
June
95.7
May
1937
January
July
95.7
June
August -.
91.3
July
September
95.7
August
February.-
October
97.1
March
November
94.2
October
April
December- -
98.6
November
May -
1939
January
December
.Tiinft
July
96.7
1936
August
February
96.7
January
September
March i
98.6
February
October
April--
98.6
November.--
December _ . .
May
98.6
April
June
102.9
May
1938
January
July.-
98.6
June
August..-
94.2
July
September
108.7
August
February
September
March
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
CONCENTRATION OF ECONOMIC POWER
197
Table 117. — Linseed oil
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price Indexes— July-September 1939=>100.0]
Vear and month
1935
January
February
March
April. -
May -
June
July
August -
September
October
November
December
1936
January
February— :.-
March-
April
May
June
July
August. --
September
October
November
Decemb«r
1937
January
February.
March
April
May
Index
Whole-
sale
Retail
98.6
98.6
100.0
98.6
104.3
98.6
104.3
98.6
107.2
98.6
105.8
98.6
101.4
98.6
95.7
98.6
92.8
104.1
105.8
104.1
105.8
1041
111.6
104.1
108.7
104.1
108.7
104.1
108.7
104.1
107.2
104.1
104.3
104.1
104.3
104.1
113.0
109.6
115.9
109.5
113.0
109.5
107.2
109.5
105.8
109.6
111.6
109.5
113.0
109.6
111.6
109.5
113.0
109.5
1216
112.8
124.6
112.8
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July...
August.
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
120.3
121.7
121.7
117.4
120.3
117.4
111.6
113.0
111.6
108.7
107.2
102.9
95.7
95.7
91.3
95.7
97.1
94.2
98.6
95.7
95.7
98.6
98.6
98.6
102.9
98.6
94. 2
108.7
Retail
121.6
121.6
121.6
121.6
121.6
121.6
121.6
121.6
121.6
121.6
108.4
106.2
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
98.6
98.6
98.6
103.0
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
198
OONCBNTRATION OP ECONOMIC POWER
Table 118. — Linseed oil
KEGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July -
August
September
October
November
December...
1936
January
February
March
April
May
June
July
August.
September
October
November
December
1937
January
February.
March
April
May
Index
Whole-
sale
Retail
98.6
110.9
100.0
110.9
104.3
110.9
104.3
110.9
107.2
110.9
105.8
1.0.9
101.4
110.9
9.5.7
110.9
92.8
110.9
104 2
110.9
104.2
110.9
111.5
110.9
108.6
110.9
108.6
110.9
108.6
110.9
107.2
116.9
104.3
110.9
104.3
110.9
113.0
110.1
116.9
111.7
113.0
110.9
107.2
107.7
10."). 8
106.1
111.5
108.5
113.0
109.3
111.6
107.7
113.0
112.5
124.6
119.0
124.5
119.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March :
April
May
June.
July
August
September
October
November .
December
1930
January .-
February
March...
April 1
May
June
July
August
September
Index
Whole-
sale
120.2
121.6
121.6
117.3
120.2
117.3
111.5
113.0
111.5
108.6
107.2
102.9
9:. 7
95.7
91.4
9.5.7
97.1
94.2
98.6
95.7
95.7
98.6
98.6
98.6
102.9
98.6
94.2
108.6
Retail
115.7
117.3
116.7
115.7
115.7
114.9
112.6
112.6
111.7
PCI
110.1
106.9
100.4
100.4
98.0
98.8
98.8
98.8
101.2
98.4
98.4
100.0
100.8
100.0
100.8
100.0
96.8
103.2
Specilfication: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
CONCENTRATION OF E>CON0MIC POWER
Table 119. — Linseed oil
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
199
Year and month
January
February...
March
April
\iay
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July
Aupust
September.
October
November.
December..
January..
February.
March
April
May ,
1935
1936
1937
Index
Whole-
sale
Retail
98.7
91.5
100.4
91.5
104.7
91.5
104.7
91.5
107.3
91.5
105.9
91.5
101.5
91.5
96.1
91.5
92.9
91.5
102.5
91.6
102.5
91.5
111.6
91.5
109.0
94.9
109.0
94.9
109.0
94.9
107.3
94.9
104.7
94.9
104.7
94.9
113.4
94.9
116.0
94.9
113.4
94.9
107.8
94.9
105.9
94.9
111.6
94.9
113.4
95.4
111.6
95.4
113.4
95.4
124.6
95.4
124.6
95.4
Year and month
1937— Continued
June -
July
August
September
October..
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February ,...
March...
Aprii
May
June
July
August
September.
Index
Whole-
sale
120.3
122.0
122.0
117.7
120.3
117.7
112.1
113.4
111.6
109.0
107.3
103.0
96.1
96.1
91.7
96.1
97.2
94.8
98.7
96.1
96.1
99.1
99.1
99.1
103.0
98.7
94.8
107.7
Retail
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.9
95.9
95.9
95.9
95.9
95.9
95 9
101.1
102.9
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
200
CONCENTRATION OF ECONOMIC POWER
Table 120. — Linseed oil
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
Janoary
February
March
AprU.-
May
June
July -...
August
September
October
November -
December
1936
January
February
March
April
May
June - ---
July ---
August
September
October
November .-
December
1937
January
February
March
AprU.
May
Index
Whole-
sale
97.
99.
103.
103.
106.
104.
100.
94.
92.
110.
107.
107.
107.
106.
103.
103.
111.
114.
111.
107.
104.
110.
111.
110.
111.
123.
123.
RetaU
Year and month
1937— Continued
June
July
August
September
October _.
November
December
1938
January
February
March
April
May
June
July
August
September
October <. _
November
December
1939
January _.
February
March
April
May
June.
July
August
September
Index
Whole-
sale
118.
120.
120.
116.
118.
116.
111.
111.
110.
107.
106.
101.
94.
94.
90.
94.
96.
94.
97.
101.
97.
94.
107.
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: On, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 121. — Linseed oil
201
REGION Vn. WEST SOUTH CENTRAL
[Wholesale and retaD price Indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July...
August...
September
October '..
November
December
1936
January..
February...
March
April
May
June r
July -
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
97.6
100.0
104.2
104.2
106.0
104.6
100.4
95.8
92.0
94.4
94.4
110.2
108.4
108.4
108.4
106.0
104.2
104.2
112.6
114.4
112.6
107.0
104.6
110.2
112.6
110.2
112.6
122.8
122.8
Retail
100.0
100.0
100.0
100.0
100.0
Year and month
1937— Continued
June... .-
July
August
September...
October
November
December
1938
January ...
February
March- ,..
AprU -..
May
June
July
August
September
October
November
December
1939
January
February .
March
AprU..
May
June
July...
August
September
Index
Whole-
sale
RetaU
118.6
100^0
121.0
100.0
121.0
100.0
116.8
100.0
118.6
100.0
116.8
100.0
111.2
100.0
112.6
100.0
110.2
100.0
108.4
100.0
106.0
100.0
101.8
100.0
95.8
100.0
95.8
100.0
91.6
100.0
95.8
100.0
96.2
100.0
914
100.0
97.6
100.0
95.8
100.0
95.8
100.0
98.6
100.0
98.6
100. 0
98.6
100.0
101.8
100.0
97.6
100.0
94.4
100.0
108.4
100.0
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars' destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
202
CONCENTRATION OF ECONOMIC POWER
Table 122. — Linseed oil
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June _.
July
August
September
October
November
December
1936
January
February
March
April
May
June -
July
August
September .._
October
November
December
1937
January
February
March
AprU
May
Index
Whole-
sale
Retail
98.0
103.1
100.0
104.4
104.1
107.5
104.1
107.5
106.2
107.5
104.9
108.1
100.8
109.4
95 9
105.9
92.5
105.8
98.8
111.6
98.8
1U.6
110.4
115.9
108.2
115.9
108.2
115.9
108.2
115.9
106.2
114.6
104.1
108.5
104.1
110.6
112.3
113.3
114.5
120.2
112.3
118.3
106.9
111.5
104.9
112.7
110.4
111.6
112.3
108.8
110.4
108.0
112.3
108.6
122.7
116.0
122.7
114.8
Year and month
1937— Continued
June
July
August
September _ _ _
October
November
December . _
1938
January _ . _
February
March
April
May
June
July....
August
September
October t
November
December _..
1939
January
February
March _
April
May ■
June..-
July
August
September
Index
Wholc-
118.6
120.6
120.6
116.5
118.6
116.5
111.0
112.3
110.4
108.2
106.2
102.1
95.9
95.9
91.8
95.9
96.6
94.5
98.0
95.9
95.9
102.1
98.0
94.5
108.2
Retail
114.8
113.6
115.4
115.4
117.2
112.8
111.1
111.0
111.0
109.9
106.3
104.2
99.2
99.2
97.3
99.2
100.8
97.6
100.2
101.2
101.2
101.2
101.2
101.2
99.3
98.6
95.3
101.1
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 123. — Ldnseed oil
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
203
Year and month
193fi
January
February
March ,
April :
May
June
July
August.
September
October
November
December
1936
January
February
March ,
April
May
June
July.
August
September
October
November
December
1937
January
February..
March
April...
May
Index
Whole-
sale
Retail
97.3
105.6
100.0
106.2
104.1
110.2
104.1
110.5
105.4
110.5
104.1
110.6
100.0
110.5
95.9
104.8
91.9
110.2
104.1
110.9
104.1
110.9
109.5
115.2
108.1
111.5
108.1
111.2
108.1
111.2
105.4
108.5
104.1
108.2
104.1
107.7
112.2
116.2
113.5
119.1
112.2
114.8
106.8
110.9
104.1
110.9
109.5
114.5
112.2
114.8
109.5
110.9
112.2
111.8
121.6
112.1
121.6
113.1
Year and month
1937— Continued
June
July....
August
September
October
November.
December
1938
January
February.
March
April...
May
June
July....
August.
September
October
November
December
1939
January
February.
March
April
May
June
July
August
September
Index
Whole-
sale
117.6
120.3
120.3
116.2
117.6
116.2
110.8
112.
109.
108.
106.
101.
95.
95.
91.
95.
95.
94.
97.
101.
97.
94.
108.
Retail
113.1
113.1
120.1
120.1
116.6
116.6
114.8
114.8
114.8
110.3
106.8
101.8
100.8
100.8
96.5
99.8
99.8
96.5
103.0
103.0
103.0
103.0
103.0
99.5
98.7
96.0
95.6
108.3
Specification: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Per gallon; dealer to contractor, delivered to job site, city.
275B52— 41 —No.
CHAPTER XI
TURPENTINE
DESCRIPTION OF THE INDUSTRY
Strictly speaking, turpentine is a term applying only to the giini
obtained from pine trees which is distilled to yield gum, spirits of
turpentine, and rosin. However, the term is more commonly used
for "spirits of turpentine," the volatile portion of the distillate, which
is mdely used by manufacturers and painters as a paint and vamish
thinner.^ Turpentine is a product of destructive distillation of long
leaf yellow pine stumps, and is also a product of the process of steam
solvent distillation of logged pine wood. Under the first process,
according to one member of the industry, one cord of stumps averages
800 pounds of charcoal, 65 gallons of pine tar, 15 gallons of turpentine
and 20 gallons of miscellaneous distillates. Under the steam solvent
process, the products are wood rosin, pine oil, wood turpentine, and
dipentene turpentine which is referred to as the top turpentine.
In 1937, 993 turpentine and rosin manufacturing estabHshments
had a total production valued at $29,000,000. Between 1929 and
1937, the number of establishments varied between 843 and 1,183,
and the value of the product between $16,000,000 and $36,000, 000. ^
Production of turpentine and rosin is centered in three Southern
States which in 1937 contributed 93 percent of the total value of
product: Georgia, 57 percent; Florida, 26 percent; and Alabama, 10
percent. Five other States in the same area produced the remainder.
PRICE STRUCTURE
Channels of Distribution.
In 1935, 15 percent of turpentine and rosin sold was shipped
directly from producers to industrial users, while 83 percent went to
wholesalers and jobbers.^ Wholesalers and jobbers sell directly to
large painting contractors and to retail paint dealers and hardware
stores, who in turn sell to painters and over-the-counter trade.
Delivered Prices.
Prices to the trade are quoted deUvered, with freight allowed on the
invoice. The delivered price, however, is the sum of thef. o. b. plant
price, plus freight. Since all producers are located in the same section
of the country, freight charges do not vaiy appreciably among com-
panies. Retail prices are quoted delivered job site.
' Ray C. Martin, Glossary of Paint, Varnish, Lacquer and Applied Terms, American Paint Joomal Co.,
St. Louis, 1937.
• Census of Manufactures, 1937, "Turpentine and Rosin," p. 540 fl.
' Census of Business, 1935, "Turpentine and Rosin," p. 95.
205
206
CONCENTRATION OF ECONOMIC POWER
PRICE LEVELS AND TBEND8
Geographical Variations.
As of September 15, 1939, wholesale prices in the 48 cities for which
both wholesale and retail data were available ranged from 26 to 40
cents per gallon; in 34 of the cities, the range was from 31 to 35 cents
per gallon. Average regional wholesale prices varied between 30 and
36 cents.
The spread between retail prices was much more marked, varying
from 40 to 90 cents per gallon. However, retail prices in 26 of the 48
cities were within a range of 51 to 65 cents per gallon . In the different
regions, average retail prices varied from 47 to 68 cents, although the
range was from 55 to 68 cents, if the Middle Atlantic area is excluded.
The most tvpical retail prices were from 51 to 55 cents per gallon.
They were less than 50 cents in 9 cities and more than 70 cents in 9
cities. The distribution of prices follows:
Price range per gallon
10.20 to S0.30.
$0.31 to $0.35.
$0..S6 to $0.40.
$0.41 to $0.45.
$0.46 to $0.60.
Number of cities
Whole-
sale
Retail
Price range per gallon
$0.51 to $0.55...
$0.58 to $0.60...
$0.61 to $0.65...
$0.66 to $0.70...
$0.71 and over.
Number of cities
Whole-
sale
Retail
The spread between wholesale and retail prices varied from 25 to
183 percent and was from 60 to 100 percent in 26 of the 48 cities.
Retail margin
(percent)
Number
of cities
Retail margin
(percent)
Number
of cities
21 to 30
2
2
4
1
6
8
81 to 00
g
31 to 40
91 to 100 --
4
41 to SO
101 to 110
4
51 to 60
Ill and above
7
61 to 70
Total -
71 to 80
48
The average spread for the several regions varied from 52 percent
in the Middle Atlantic area to 128 percent in the East South Central
It is interesting to note that the regions showing the greatest differ-
ences— South Atlantic, East South Central and West South Central —
also reveal the greatest degree of rigidity in retail prices.
Average price
Margin
(percent)
Region
Whole-
sale
Retail
I. New England - - -
$0.32
.31
.32
.33
.30
.30
.32
.36
.34
$0.66
.47
.65
.58
.61
.68
.68
.64
.66
75
n. Middle Atlantic - - -
52
ni. East North Central - -
72
IV. West North Central
76
V. "South Atlantic - -
103
VI. East South Central --
128
VII. West South Central
113
VIII Rocky Mountain . -
78
IX Pacific .
dl
CONCENTRATION OF ECONOMIC POWER 207
Price Trends. (See chart XV and tables 124 to 133.)
The wholesale price of turpentine was subject to very sharp and
frequent fluctuations between 1935 and September 1939. The pre-
dominant trend was downward, resulting in a net decline of 45 percent
for the period. Retail prices were much more stable and dechned by
only 13 percent.
In the first 6 months of 1935, the average wholesale price for all 50
cities fell 19 percent, the index dropping from 186 in January to 150
in July (based on the July-September 1939 average=100). Follow-
ing a short-Uved 7 percent recovery, the decline was resumed until
prices leveled off in the middle of 1936 with the index at 135. In
the last 6 months of 1936, the index rose to 160, only to decline sharply
and steadily to 90 in August 1938. Between the latter date and
February 1939, there was an advance of 22 percent, followed by a
decline which was interrupted only by the outbreak of war in
September.
Since production is concentrated in a very limited area, and de-
livered prices are computed on a simple f. o. b. plant basis, the whole-
sale price trend for the Nation as a whole was the same as in the various
regions. On the other hand retail price trends were far more variable
geographically. In the East North Central, New England, Rocky
Mountain, and Pacific regions the retail prices fluctuated much more
widely than the retail composite for the Nation and closely followed
the trend of wholesale prices. Retail prices in the remaining five
regions were much more stable.
208
C0NC5ENTRATI0N OF ECONOMIC POWER
Chabt XV
TURPENTINE
WHOLESALE AND RETAIL PRICE INDEXES
INOCX
too
lao
160
140
120
JULY - SEPTEMBER 1939 « 100
UNITED STATES • W«ltht«d *v«rog« Pflc» REGION
SOUTH ATLANTIC
K
\r
\
Lt
v
VaA
v-\
IIC»
r"
X
S— «
A f
M"
REGION I - NEW ENGLAND
14 0
ISO
100
ao
zoo
leo
ISO
140
120
100
so
200
leo
l«0
140
120
100
^
V
■HOLM
.LE
Kh
ti
fV
•CI
T!
^T^
A/
SP
n-*
REGION
XI - EAST SOUTH CENTRAL
K
\
\ ,
yKKOLt*
ILt
\J
«T.,y
A t
1 ^n
REGION H
MIDDLE.ATLANTIC
K
\
> ,
M
w
Y-HOL
WLE
s
\
\
A /
W^ -
REGION 3m: - WEST SOUTH CENTRAL
REGION
IK - EAST NORTH CENTRAL
\r
\
■KOLH
\x
>
\J
\
F
RCTA
/
^ ^
T\i
v-^ "
too
lao
l«0
140
REGION
m - WEST NORTH CENTRAL
V
s
VHOLCti
LC
\jJ
VA/
MMlV
A f
100
■ n
L.
|V^
eWii'M
200
180
160
140
120
100
200
ISO
160
140
120
\/-
,WMOLe»
«.t
v
\A
RETAIL V,
s
A 1
1 IVM"
REGION "TTTT
- ROCKY MOUNTAIN
\.
A^\ >
«i
^^•A/
"Vv
V"
"■
WHOLC
^*^^^~AU„
IW^
REGION
3X: - PACIFIC
' 1 \ . /v
..Lt
■W!S^
■^ HJ
.*k_/
T^"-
200
180
160
140
120
100
SO
200
ISO
160
140
120
100
•999 1996 I99T I93S 1939 19-0 1941
UNITCO STATES BUREAU Of LABOR STATISTICS
1936 I93T 1936 1939 1940 1941
CONCENTRATION OF ECONOMIC POWER
Table 124. — Turpentine
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes-^uly-September 1939 =» 100.0]
209
Year and lAontb
1935
January.
February
March
April
May
June.
July
August ---
September —
October
November
December
1936
January
February
March
April
May,
June
July
August
September
October
November
December
1937
January
February
March
AprU-
May... .-
Index
Whole-
sale
Retail
177.8
126.4
186.2
126.4
181.0
126.4
173.7
126.4
172.4
126.4
166.0
126.4
157.4
124.6
149.8
122.4
150.7
123.8
167.5
129.0
166.9
129.0
166.6
129.0
166.9
129.2
163.3
129.1
150.6
127.2
139.9
117.4
136.5
122.7
136.5
121.6
138.7
121.6
143.9
121.6
139.9
121.6
138.7
121.6
146.4
121.6
155.6
123.8
160.8
126.3
154.1
126.3
146.6
124.8
137.2
120.9
136.3
120.8
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June.
July .
August-..
September
October
November
December
1939
Jan uary
February
March
AprU
May...
June
July
August
September,.
Index
Whole-
133. 1
128.8
123.0
110.1
108.3
lOfi 1
103.5
109.3
104.9
103.4
93.2
91.4
91.7
93.2
92.4
85.6
92.6
89.2
91.7
100.0
101.6
109.5
105.9
98.2
96.6
98.2
96.6
106.8
Retail
118.0
115.4
113.1
108.8
106.7
106.1
103.6
104.2
104.7
103.0
102.1
102.1
101.1
100.7
100.7
101.7
102.8
101.4
103.4
102.3
104.5
104.5
102.8
99.2
99.1
99.2
98.9
100.8
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars, destination.
Retail: Dealer to contractor, delivered to job site, city.
210
CONCENTRATION OF ECONOMIC POWER
Table 125. — Turpentine
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-Sept«mber 1939 » 100.0]
Year and month
1935
January
Febraary
March
April
May
June _
July
August
September.. _
October
November...
December
1936
January
February
March.
April
\iay
June
July
August
September
October
November
December.,..
1937
January
February
March
April
May
Index
Whole-
sale
Retail
176.7
163.5
183.3
163.5
180.0
163.6
173.3
163.6
170.0
163.6
163.3
162.6
lii8.7
162 6
146.7
162.5
ISO.O
162.6
168.7
162.6
166.7
162.6
163.3
162. 6
166.7
160.0
160.0
160.0
160.0
160.0
140.0
160.0
136.7
160.0
136.7
122.6
136.7
122.6
143.3
122.6
140.0
122.6
136.7
122.6
143. 3
122.6
153.3
122.6
160.0
136.9
153.3
136.9
146.7
136.9
136.7
124.2
133.6
124.2
Year and month
1937— Continued
June.
July
August
September
October
November
December
1938
January...
February
March
AprU
May -
Juno..
July
August
September
October
November
December
1939
January
February.
March
AprU •.
May
June
July
August
September
Index
Whole-
s'
133.3
126.7
123.3
110.0
106.7
106.7
103.3
106.9
103.3
103.3
93.3
90.0
90.0
93.3
90.0
83.3
93.3
90.0
90.0
100.3
103.7
113.1
100.3
97.7
97.7
97.7
96.9
105.4
Retail
116.9
116.9
110.9
116.9
116.9
110.9
110.9
108.7
108.7
108.7
108.7
108.7
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.6
101.6
101.0
101.6
101.6
100.0
100.0
100.0
100.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars, destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
211
Table 126. — Turpentine
REGION II, MIDDLE ATLANTIC
[Wholesale price index— July-September 1939=100.0^.
Year and month
1036
January
February
March
April
Nlay
JUE«
July
August
September...
October
November
December
1936
January
February
March
April
May..
June
July...
August
Wholesale
index
179.3
189.7
182.8
176.9
175.6
169.0
158.6
151.7
151.7
169.0
169.0
169.0
169.0
166.6
151.7
141.4
137.9
137.0
141.1
144.8
Year and month
1938— Continued
September
October...
November
December
1937
January ,
February
March
April
May
June :...
July -
August
September
October.
November
December
1938
January
February
Wholesale
index
141.4
141.1
148.3
158.4
162.1
166.2
148.3
137.9
137.9
134.6
131.0
124.1
110.3
110.1
106.9
103.4
110.3
106.6
Year and month
1938— Continued
March
April
May..
June
July
August
September
October.
November
December
1939
January
February
March
April
May
June
July
August
September
Wholesale
Index
103.4
93.1
92.9
93.1
93.1
03.1
86.2
03.1
80.7
03.1
100.0
103.3
110.3
106.9
99.7.
96.6
99.7
96.6
106.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots, producer to retail dealer, f. o. b. cars destination.
212
CONCENTRATION OF ECONOMIC POWER
Table 127. — Turpentine
REGION in. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July.-.
August...
September
October
November
December.
1936
January.
February
March..
April
May
June.
July
August
September
October
November
December..
1937
January.-
February
Mwch
AprU...
May. .-
Index
Whole-
sale
176.7
183.8
180.0
173.3
170.2
163.8
166.7
149.8
150.0
166.7
166.5
166.5
166.7
163.1
150.0
139.8
136.7
136.7
136.8
143.3
140.0
136.8
136.5
163.6
160.0
153.3
146.7
136.7
136.5
Retail
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
149.0
149.0
149.0
149.0
149.0
149.0
121.1
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
139.7
Year and month
1937— Continued
June
July....
August
September
October
November
December
1938
January...
February
March
April
May
June
July
August
September
October
November
December
1939
January
February...
March.
April
May
June
July
August.-
September..
Index
Whole-
133.1
127.1
123.1
110.0
106.8
106.5
103.3
109.8
103.5
103.3
93.3
90.2
90.4
93.3
93.1
86.5
93.3
30.0
90.4
100.0
100.2
109.8
106.6
96.8
96.7
96.8
96.7
106.7
Retail
130.4
121.1
121.1
111.8
102.6
102.5
93.2
96.9
98.7
98.7
102.5
102.5
102.5
102.5
102.6
102.5
102.6
102.5
111.8
111.8
111.8
111.8
111.8
98.7
98.7
98.7
98.7
102.5
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
213
Table 128. — Turpentine
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939 =-100.0]
Year and month
1935
January
February
March
AorU-.
May
June
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August..
September
October
November
December
1937
January
February
March
AprU
May
Index
Whole-
sale
Retail
17."!. 1
112.4
182.9
112.4
178.4
112.4
170.8
112.4
168.6
112.4
163.3
112.4
155.5
112.4
147.1
112.4
149.0
112.4
165.3
112.4
164.2
112.4
163.4
112.4
164.2
112.4
160.1
112.4
149.0
112.4
138.1
112.4
134.8
112.4
134.8
112.4
135.9
112.4
142.6
112.4
138.1
112.4
135.9
112.4
143.8
11Z4
152.3
112.4
158.8
113.6
152.3
113.6
144.6
108.6
135.9
108.6
134.8
108.6
Year and month
1937— Continued
June
July
August..
September
October
November
December
1938
January
Febmary
March
April..
May
June -
July
August
September
October .^
November
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
131.6
126.7
121.8
109.8
i06.5
105.4
103.3
108.7
103.2
103.2
93.6
90.2
91.4
93.6
91.5
85.0
92.4
89.1
91.4
100.0
100.0
108.7
104.6
96.7
96.7
96.7
96.7
106.5
RetaU
108.6
108.6
108.6
103.7
103.7
103.7
103.7
101.
101.
101,
101.
101.
96.
96.
96.
96.
96.
93.0
98.0
98.0
93.0
98.0
98.0
98.0
98.0
103.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
214
CONCENTRATION OF ECONOMIC POWER
Table 129. — Turpentine
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1030-100.0]
Year and month
1035
January.-
February .-.
March
April
May
June -
July
August
September
October
November
December
1936
January
February.
March
April
May -- -
June
July
August..
September
October
November
December
1937
January..
February
March
April...
May
Index
Whole-
sale
RetaU
180.8
111.6
187.9
111.6
184.0
111.6
176.1
111.6
173.0
111.6
166.9
111.6
150.6
111.6
151.4
111.6
162.9
111.6
170.0
111.6
160.1
111.6
168.0
111.6
160.1
115.8
165.4
115.8
152.5
115.8
141.2
115.8
137.7
115.8
137.7
115.8
138.9
115.8
145.5
115.8
141.2
115.8
138.9
115.8
147.9
115.8
156.4
115.8
163.0
116.8
156.4
116.8
148.2
116.8
138.0
116.8
137.4
116.8
Year and month
1037— Continued
June
July
August-. --
September
October
November..
December.
1938
January
February.
March
A pril
May
June - --
July.
August
September
October
November
December
1930
January
February..
March....-
April
May
June
July
August u.
September
Index
Whole-
sale
134.2
128.4
123.7
110.6
107.4
106.2
103.0
109.4
103.0
103.6
03.0
80.9
89.9
03.0
01.9
84.9
92.2
88.7
89.9
100.0
100.6
109.7
105.9
96.9
96.5
96.9
96.5
107.0
RetaU
116.8
116.8
116.1
116.1
116.1
116.8
116.8
110.0
110.0
110.0
110. e
110.0
106.8
104.2
104.2
104.2
104.2
104.2
104.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b, cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
215
Tablk 130. — Turpentine
REGION VI. EAST SOUTH CENTRAL
[Wbolesato and ratafl price Indexes— July-September 1939=100.0]
Year and month
1936
January
February
March
te?;:.;;::;;:;:::
June
July
August
September
October
November
December
1936
January
February
March
AprU
May -.
June
July
August
September
October
November
December...
1937
January
Februaiy
March
April.-
Alay
Index
Whole-
sale
182.
190.
184.
177.
176.
169.
160.
151.
154.
170.
170.
169.
170.
166.
152.
141.
138.
138.
140.
145.
141.
140.
148.
157.
163.
167.
148.
140.
137.
Retail
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March .
April
MaJJr
June
July
August
September
Index
Whole-
sale
134.8
130.8
124.2
110.6
108.4
106.6
104.8
109.6
104.8
103.5
92.9
90.7
91.9
92.9
91.9
84.9
92.6
89.0
91.9
100.0
101.3
110.1
106.1
97.8
96.5
97.8
96.5
107.1
RetaO
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
97.2
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to Job site, city.
216
CONCENTRATION OF ECONOMIC POWER
Table 131. — Turpentine
REGION VII. WEST SOUtIS CENTRAL
(Wholesale and retail price indexes^July-September 1936=100.0]
Year and month
1936
January
February
March
AprU .-.-
May
June
July...
August
September
October
November
December
1936
January
February
March...
AprU
May
June
July...
August,
September
October
November
December
1937
January
February
March
AprU
May
Index
Whole-
sale
178.5
184.9
181.5
173.0
171.8
165.0
167.7
148.0
150.9
167.9
166.2
165.0
166.2
161.6
150.9
139.0
135.6
136.6
137.8
144.2
139.0
137.8
144.6
154.8
161.1
154.3
145.8
137.4
135.2
RetaU
103.1
103.1
103.1
86.3
86.3
Year and month
1937— Continued
Juno
July
August -
September .„...
October
November
December
1938 -
January
February
March
AprU
May
June..
July
August
September
October..
November
December
1939
January
February
March
April
May
Jime .
July
August
September
Index
Whole-
132.2
127.6
122.0
110.2
107.2
105.0
103.4
108.0
103.8
103.4
93.2
90.3
90.3
93.2
90.3
83.6
91.6
88.1
90.3
100.0
100.6
108.4
103.8
97.1
96.6
97.1
96.6
106.8
Retail
86.3
86.3
86.3
86.3
86.3
86.3
86.3
86.3
86.3
86.3
86.3
86.3
90.8
90.8
90.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots, producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 132. — Turpentine
REGION Vin. ROOKY MOUNTAIN
[Wholesale and retail price Indexes— Joly-September 1939=100.0)
217
Year and month
1935
January
February
March
AprU...-
May
June
July
.August
September
October
November
December .
1936
January
February
March.
April
May
June..-
July
August
September
October
November
December
1937
January
February
March
April ,
May
Index
Whole-
sale
169.1
177.8
172.1
166.1
163.1
159.8
151.0
144.7
145.0
160.1
160.1
159.8
160.1
156.8
145.0
136.0
133.0
133.0
133.0
1.39. 0
136.0
133.0
141.7
148.0
154.0
148.0
142.0
133.0
133.0
Retail
147.0
147.0
147.0
147.0
147.0
147.0
144.2
136.7
137.0
147.0
147.0
147.0
141.2
141.2
137.9
135.6
135.6
134.6
134.6
134.6
134.6
134.6
134.6
145.6
152.3
152.3
152.3
146.2
144.9
Year and month
1937— Continued
June ;
July..
August .
September.
October
November
December
1938
January
February
March
AprU _
May.
June
July _.
August
September
October
November..
December...
1939
January
February
March ■.
April
Ma^
June..
July
August.
September
Index
Whole-
sale
130.0
126.7
121.0
109.0
106.0
106.0
103.0
109.0
103.0
103.0
94.0
91.0
93.7
94.0
93.7
88.7
94.0
91.0
93.7
100.0
100.0
109.0
105.7
97.0
97.0
97.0
97.0
106.0
Retail
143.0
141.4
137.1
136.1
128.fi
128.0
128.0
129.1
127.9
124. C
119. 6
119.5
119.6
119.6
119.5
119.5
112.9
106.7
103.9
103.9
107.3
106.9
103.9
103.9
103.9
103.9
97.3
97.9
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
218
CONCENTRATION OF ECONOMIC POWER
Table 133. — Turpentine
REGION IX. PACIFIC
[Wboles^e and retail price indexes— Jul y-Septemb«r 1939=100.0]
Year and month
1935
January.
February
March
April
May
June -
July
August.
September
October
November
December
1936
January
February
March
April
May
June .-
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
171.9
178.1
175.0
165.6
165 6
159.4
153.1
143.8
146.9
162.6
159.4
159.4
159.4
156.3
146.9
134.4
131.3
131.3
134.4
140.6
134.4
134.4
140.6
150.0
156.3
150.0
140.6
134. 4
131.3
Retail
136.8
136.8
136.8
136.8
136.8
136.8
129.4
121.3
127.5
136.8
136.8
136.8
136.8
136.2
128.8
120.8
120.8
120.8
120.8
120.8
120.8
120.8
120.8
128.2
128.2
128.2
121.5
121.3
120.8
Year and month
1937— Continued
June
July..
August
September
October
November
December.
1938
January _.
February
March - -.
April
May
June.--
July..
August
September
October
November.'.
December
1939
January
February -
March
April
May.
June -
July-.-
August
September...
Index
Whole-
sale
128.1
12S.0
118.8
109.4
106.3
103.1
103.1
106.3
103.1
103.1
93.8
90.6*
90.6
93.8
90.6
84.4
90.6
87.5
90.6
100.0
100.0
106.3
103.1
96.9
96.9
96.9
96.9
106.3
Retail
120.8
120.8
112.8
106.0
104.7
104.7
104.7
111.5
111.6
104.7
96.7
96.7
96.7
96.7
96.:
96.7
103.6
98.0
96.7
96.7
104.7
104.7
97.4
96.7
96.7
97.3
97.3
104.0
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b. cars destinations.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER XII
DOUGLAS FIR
DESCRIPTION OF THE INDUSTRY
The production of Douglas fir lumber in 1937 was over 6% billion
board feet. The following summary shows data from the 1937
Census of Manufactures * on the production and value of Douglas fir
for the years indicated.
Production
Year
Production
Year
1,000 board
feet
Average
value
1,000 board
feet
Average
value
1929.-.
1931 —
1933
8, 688, 700
4, 648, 455
3, 969, 154
$20.05
12.05
13.57
1935
1937
4.772,449
6, 554, 781
$15. 97
19.67
The volume of production of Douglas fir was exceeded by only one
other kind of lumber, yellow pine, which was also slightly above fir
in average unit value.
Douglas fir represented 25 percent of all lumber cut in the United
States, and 29 percent of all softwood lumber. In 1937 the ratio of
softwood to hardwood milled was 9 to 2.
Douglas fir is produced chiefly in the Pacific Northwest, with two
States, Washington and Oregon, accounting for 95 percent of the
total. Eight other States produce very small amounts. Table 134
and map V show the States in which Douglas fir is milled.
Table 134. — Geographical distribution of -production
of Dovglas fir 1937
Production
State
Production
state
1,000 board
feet
Percent
of total
1,000 board
feet
Percent
of total
Washington
3, 648, 751
2, .566, 160
172,643
64,789
57,899
55.7
.39. 1
2.6
1.0
(')
30, 219
5,867
3.280
2,813
2,360
Oregon
Colorado . -
California
Arizona .
Idaho
Utah ....
Montana -
Wyoming
> Less than 1 percent.
Source: Census of Manufactures, 1937. Production of I>umber, by kind and by States, table 10, p. 514.
Many companies are engaged in cutting and milling Douglas fir.
Data from the Department of Commerce show that the four leading
firms produce only 23 percent of the national total. One firm often
controls the three major elements of the industry — ouTiership of
timber, logging, and manufacturing.
' Census of Maniifaoturers, 1937; "Liinil>er and Timl>er ProducUs Not Elsewhere Cl.issified," table 7,
pp. 499. ff.
•J7riS52— 41 — No. .'5.S
-16
219
220
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 221
Douglas fir lumber is used for all purposes for which softwood is
satisfactory. Dimension fir is the most important type, and repre-
sents 32 percent of the timber cut.
PRICE STRUCTURE
The fir dimension priced for this survey was No. 1 common,
2 inch by 4 inch by 16 feet, S4S. The wholesale prices collected were
per thousand board feet, in mixed carlo ts, mill to retail yard, f. o. b.
cars at destination.
Lumber price lists are usually set up on an f. o. b. mill basis, biit
prices paid are often quoted at destination.
Although the original prices quoted by producers are f. o. b. mill,
the mill price, plus freight, is sometimes shaded at a particular des-
tination. One producer stated that no two sales in the same day for
any specified destination were likely to be made at the same price.
However, individual mills may refrain from selling in territories
where they deem the absorption of freight excessive.
Although an unsystematic delivered price practice is used, the
railroad freight rate structure is such that a degree of uniformity is
introduced. Freight rates have been adjusted to more or less equalize
freight advantages among competing areas and mills, insofar as
possible. For example, freight charges for Douglas fir from the
Northwest to all points north of the Ohio River and east of Chicago
are the same. This uniformity, of course, is a very important ele-
ment in determining the geographical price structure. Water rates
likewise result in a "zoning" of delivered prices. The rate is set up to
apply to shipments from any Pacific coast port to any port on the
eastern seaboard.
Channels of Distribution and Commissions.
Douglas fir is sold direct from the mill to retailer, through brokers,
and by commission men, the latter two channels being the most
popular. Usual discounts are 2 percent for cash in 10 days or 10th
proximo, 5 percent to commission salesmen, and 8 percent to brokers;
all discounts and commissions are a. d. f. (after deducting freight).
The commission man merely makes the sale, the credit risk and collec-
tions remaining in the hands of the mill, while the broker assumes all
risks, and gets an added 3 percent discount over the commission man.
The company bills the retailers for purchases through commission men,
but the broker pays the mill for lumber sold through his office, and in
turn bills the retailers. Discounts are deducted by the broker when,
making remittance to the mill. Bona fide wholesalers, with ware-,
house facilities, who are not important in carlot sales- to retailers,
receive the same discount as the broker, and ia turn sell to the small
retailer in less than carlot quantities.^
Principal Sales Areas.
Fir is sold chiefly on the Pacific coast, in the mid-Atlantic States,
and in the Great Lakes territory. The availability of pine, of course,
restricts sales of fir in the South. The Pacific area consumes 32 per-
cent of the output, mid-Atlantic 21 percent, and Great Lakes area 14
percent. Green lumber is shipped by water to all points on the west
• The structure here described is the formal set-up most generally followed. The extent of deviations from
this practice was not determined. Interviews with a few manufacturers were the sources of the Information.
222 CONCENTRATION OF ECONOMIC POWER
coast, and via the Panama Canal to points on the Atlantic coast. Dry
fir is shipped into the area east of the Rockies, the price of dry lumber
being higher and freight costs less than for green material. The
western edge of the Alleghenies is approximately the line at which
sales of dry timber cease, due to the fact that all-rail freight rates east
of the Alleghenies exceed the cost of water transportation plus the rail
haul inland from the Atlantic coast.
Due to variations in delivered prices, Douglas fir producers could
not quote delivered prices to every city included in this survey. To
obtain approximate delivered prices, freight costs were added to f. o. b.
mill quotations. This method of arriving at delivered prices does not
always produce exact prices, but the price trend should be reasonably
accurate.
PRICE LEVELS AND TRENDS
The trends of wholesale prices in the various regions are virtually
identical and the national composite index is, therefore, representative
of the price movements for the country as a whole. (See chart
XVI and tables 135 to 144.) The Bureau's index number of Douglas
fir lumber prices, based on the thud quarter of 1939=100.0, was 92
in the early part of 1935. Prices increased 8 percent from April to
July of that year when the index was 100. This level held with only
shght fluctuations until December 1936 when prices again moved
upward. This trend continued for 4 months during which the index
increased 5 percent to 105 in March 1937. The price was unchanged
over the next 6 months but, in October, influenced by the general
recession in aU durable goods prices, a decline began which lowered the
index 8 percent to 96 in February 1938. During the next 18 months
prices rose shghtly but steadily, the increase aggregating 6 percent.
At the time of the survey, in September 1939, demand was strong
and prices were being increased at several producing p ints.
The national composite of retail Douglas fir prices was at about the
same level as the wholesale in January 1935 — 91.6 — but did not
participate in the sharp upward movement in the summer and faU of
1935. ti'rom August 1936 to July 1937, however, the index rose 9
percent, from 91.5 to 99.6. From July 1937 to May 1939 retail
averages declined much less sharply than wholesale (approximately
3 percent) and rose about 4 percent between May and September 1939.
More sensitive to varying local competitive conditions than whole-
sale prices, retail price behavior differed widely from region to region.
In New England, the index approximated the national composite with a
10 percent increase in the spring of 1937, the only change of importance.
In the Middle Atlantic region, retail prices advanced twice — 6 percent
in January 1937 and an additional 6 percent in June 1939. In the
East North Central area retail prices dropped 4 percent in January
1936, rose 2.5 percent during 1937, and dropped 4 percent during 1939.
Retail price averages in the West North Central were predominantly
stable, the aggregate rise from the 1935 low to the 1937 high being
5 percent. In 1938 the index declined 2 percent and rose 2 percent
in 1939. In the South Atlantic retail prices of fir rose 23 percent in
January and February of 1937, declined 2 percent in 1938 and the
first 6 months of 1939, and rose 4 percent in September 1939.
^ A 22 percent increase in the first 3 months of 1937 was the only
change of importance in retail prices in the East South Central, and
CJONCENTRATION OF ECONOMIC POWER
223
Chart XVI
DOUGLAS FIR DIMENSION
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939-100
RECIOM I - SOUTH ATLANTIC
UNITED STATES
- WtloDM Avwot* Prict
0\
M
J^ A
•«ITA1L
>-«
^
REGION I
- NEW
ENGLAND
WH
^..
r\
,^n_ji«
ruL
REGION n -
MIDDLE
ATLANTIC
wm
•LCULL
^
.. .J
J
\
Y
__j
■^•rtiii.
l«EGION
m - EAST NORTH CENTRAL
V^^
^^{ ^^ •
/'""'HwoLfm.t
""
■ to
no
100
REGION
TX
-WEST NORTH CENTRAL
^..
C
X
^
v^a—
•^^^
*o
'-M
Tin.
1935 1936 1937 1938 1939 1940 1941
UNITCO STATtS BUREAU OF LABOR STATISTICS
—--^ax^ ,
J
■^•rtAiL
^^^
— ^F-«.
^-w
REGION HI - EAST SOUTH CENTRAL
HAl.«^
r-\
J^
7^^
f
WEST SOUTH CENTRAL
REGION. Zm - ROCKY MOUNTAIN
^
"""\
J^-
'MQLCAALC
\
V-^
Lmtail
fT^
'-'pV
hk-
^\J
/^
«MOLI
sAi.e-'^
REGION
H - PACIFIC
n^
— '
^
n,.
1
^
IjS
>^^
Tf
1933 1936 1937 1938 1939 1940 1941
224
CONCENTRATION OF ECONOMIC POWER
prices were rigid throughout the entire period in the West South
Central. Retail prices in the far western areas where Douglas fir is
widely used closely paralleled wholesale price movements. In the
Rocky Mountain region retail prices rose 9 percent in the spring and
summer of 1935, tapered off about 2 percent in 1936, and rose 11
percent in the spring and summer of 1937. The downward movement
of late 1937 and 1938 aggregated about 9 percent. After rising
slightly early in 1939, prices eased off an additional 4 percent in May
and rose 1 percent in August.
In the Pacific region retail prices dropped from an index of 91.5 in
March of 1935 to 83.8 in April, but recovered to 91.1 in May. In the
fall of 1936 and spring of 1937, the index rose approximately 25 per-
cent, and dropped 17 percent in the subsequent recession lasting
through October 1938. In the first 4 months of 1939, the index dropped
an additional 4 percent but rose 11 percent in August.
Table 135. — Douglas fir dimension, No. 1
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February.-.
March
April
May..-
June.
July
August
September.
October
November.
December..
January
February...
March
April
May .
June
July..
AuguSt
September-
October
November-
December-.
January--
February-
March
AprU.
1935
May-— j 105.2
Index
Whole-
sale
Retail
92.0
91.6
92.0
91.6
92.0
91.6
92.0
90.8
94.6
91.7
94.6
91.6
^.9
91.6
99.9
91.6
99.9
91.6
99.9
91.5
99.9
91.6
99.9
92.0
101.2
91.4
101.2
91.5
101.2
91.4
101.2
91.5
101.2
91.6
99.9
91.5
99.9
91.5
99.9
91.5
99.9
92.0
99.9
91.9
99.9
91.9
101.2
92.8
102. 5
99.2
103.9
99.6
10.5. 2
99.8
105.2
98.8
105.2
99.0
Year and month
1937— Continued
June. -
July
August
September
October
November
December
1938
January.
February ,
March
April
May
June
July-
Augtist-.
September „ .-
October
November
December
1939
January
February
March
April
May
June-.
July
August-- -.
September
Index
Whole-
sale
105.2
105.2
105.2
105.2
102.6
99.9
97.3
97.3
96.4
97.5
97.5
97.5
97.5
97.5
98.9
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
101.8
Retail
99.1
99.6
99.6
99.6
99.4
99.5
99.4
98.2
98.2
98.1
98.1
97.9
97.9
97.9
97.9
97.6
97.5
97.7
97.7
97.8
97.9
97.9
97.8
96.7
99.1
99.0
100. 1
100.9
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OP ECONOMIC POWER
Table 136. — Douglas fir dimension, No. 1
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
225
Year and month
1035
January
February
March..
April.
May
June
July
August
September
October
November
December..
1936
January
February
March
April
May
June
July .-
August
September
October
November
December
1937
January
February...
March.
April..
May
Index
Whole- Retail
101.
101.
101.
101.
101.
99.
101.
102.3
103.6
104.9
104.9
104.9
91.3
91.3
91.3
91.3
91.3
90.9
90.9
90.9
90.9
90.9
90.9
90.9
91.1
91.1
91.1
91.1
90.9
90.9
90.9
90.9
90.9
90.9
90.9
91.2
91.6
92.0
92.6
92.6
92.6
Year and month
1037— Continued
June
July
August
September
October
November
December _
1938
J anuary
February
March ,
April
May
June
July
August-
September
October.
November. ,
December
1939
January
February
March
April
May
June
July _.
August
September...
Index
Whole-
sale
104.9
104.9
104.9
104.9
102.3
99.8
97.2
97.2
97.0
97.9
97.9
97.9
97.9
99.2
99.2
99.2
99.2
99.2
99.2
00.2
90.2
90.2
09.2
99.2
99.2
99.2
101.7
Retail
100.5
100.5
100.5
100.5
100.6
100.6
90.6
00.6
00.2
00.2
00.2
00.2
00.2
00.2
99.2
00.2
09.2
00.2
00.2
99.2
09.2
99.2
90.6
101.2
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Whole.sale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
226
CONCENTRATION OF ECONOMIC POWER
Table 137. — Douglas fir, dimension, No. 1
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
Alay
June
July-
August
September.
October
November
December
1936
January
February
March
April
May -
June -
July
August.-
September
October —
November
December
1937
January
February
March.
April
May
Index
Whole-
sale
Retail
92.2
88.4
92.2
88.4
92.2
88.4
92.2
88.4
94.7
88.4
94.7
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
101.1
88.4
101.1
88.4
101.1
88.4
101.1
88.4
101.1
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
99.8
88.4
101.1
88.4
102.3
94.1
103. 6
94.1
104.9
94.1
104.9
94.1
104.9
94.1
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October.
November.
December
1939
January
February
March
April
May
June
July...
August
September
Index
Whole-
sale
104.9
104.9
104.9
104.9
102.3
99.8
97.2
97.2
97.0
97.9
97.9
97.9
97.9
97.9
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
101.7
Retail
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.5
94.5
94.6
94.5
94.6
100.0
100.0
100.0
100.0
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
227
Table 138. — Douglas fir, dimension, No. 1
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June.
July
August ,
September
October.
November..
December
1936
January
February
March
April
May -
June
,^uly
August
September
October
Novembei...
December
1937
January
February..
.March-
.\pril
May
Index
Whole-
sale
99.
100.
100.
100.
100.
100.
99.
99.
102.2
103.5
104.7
104.7
104.7
Retail
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
103.5
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
102.5
102.5
102.5
102.5
102.6
Year and month
Whole-
sale
1937— Continued
June
July
August
September
October.
November
December
1938
January
February
March
April..
May
June... ---
July
August.
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
104.7
104.7
104.7
104.7
102.2
99.6
97.0
97.0
95.8
97.9
97.9
97.9
97.9
97.9
99.1
99.1
99. 1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
101.7
Retail
102.5
102.5
102.5
102.5
102.5
102.5
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
102.9
102.9
102.9
102.9
100.0
100.0
100.0
100.0
100.0
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
228
CONCENTRATION OF ECONOMIC POWER
Table 139. — Douglas fir, dimension, No. 1
REGION IV, WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=" 100.0]
Year and month
1935
January
February
March..
April
May
June
July.
August. __
September
October
November.
December
1936
January
February
March
April.
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
91.7
96.0
91.7
96.0
91.7
96.0
91.7
96.8
94.5
96.8
94.5
96.9
99.9
96.8
99.9
97.4
99.9
97.4
99.9
97.4
99.9
97.4
99.9
97.4
101.3
96.8
101.3
96.8
101.3
96.8
101.3
98.4
101.3
98.4
99.9
98.4
99.9
98.4
99.9
98.1
99.9
98.1
99.9
97.7
99.9
97.7
101.3
97.7
102.7
98.7
104.0
99.9
105.4
100.4
105.4
101.1
105.4
101.1
Year and month
1937— Continued
June.-
July -
August
September
October
November
December
1938
January
February
March
April
May
June...
July
August.
September
October
November
December
1939
January
February
March .
April
May
June
July
August
September
Index
Whole-
sale
105.4
105.4
105.4
105.4
102.7
99.9
97.2
97.2
95.8
97.2
97.2
97.2
97.2
97.2
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
101.8
RetaU
101.1
101.1
101.1
101.1
101.1
101.1
101.1
100.
lOO
99,
99
98,
98
98,
99.2
99.2
99.5
99.5
99.5
99.5
99.5
99.9
100.7
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
229
Table 140. — Douglas fir^ dimension, No. 1
REGION V. SOUTH ATLANTIC
[Wholesale tod retail price indexes— July-September 1939=100.0]
Year and month
1935
January..-
February
March
April
May
June
July -
August.
September
October
November
December..
1936
January
February
March
April
May
June —
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
92.9
81.5
92.9
81.5
92.9
81.5
92.9
81.5
95.3
81.5
95.3
81.5
100.2
82.1
100.2
82.1
100.2
82.1
1OO.2
82.1
100.2
82.1
100.2
81.5
101.4
81.5
101.4
82.1
101.4
82.1
101.4
82.1
101.4
82.1
100.2
82.1
100.2
82.1
100.2
82.1
100.2
82.1
100.2
82.1
100.2
82.1
101.4
82.1
102.6
99.2
103.9
100.9
105.0
100.9
105.0
100.9
105.0
101.4
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May. - ,
June
July
August-
September
October
November
December
1939
January
February
March
April-
May
June
July
August-
September
Index
RetaU
101.4
101.4
101.4
101.4
100.9
100.9
100.3
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mi.xed carlots, mill to retail yard, f. 0. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
230
CONCENTRATION OF ECONOMIC POWER
Table 141. — Douglas fir, dimension, No. 1
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0)
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April
May ---
June
July
August
September .-.
October
November
December —
1937
January
February
March
April
May
Index
Whole-
sale
Retail
93.1
93.1
80.9
93.1
80
9
93.1
80
9
95.7
80
9
95.7
80
9
100.8
80
9
98.1
80
9
98.1
80
9
98.1
80
9
98.1
80
9
98.1
80
9
99.4
80.9
99.4
80
9
99.4
80
9
99.4
80
9
99.4
80
9
98.1
80
9
99.5
80
9
99.5
80
9
99.5
80
9
99.5
80
9
99.5
80
9
100.7
80
9
102.0
88.3
103.3
94.3
104.6
94.3
104.6
94.3
104.6
98
9
Year and month
1937— Continued
June
July
A ugust
September
October.
November
December
1938
January
February
March
A pril - . .
May
June
July.
A ugust
September..
October
November.
December
1939
January.
February.
March
April
May
June
July
August
September
Index
Whole-
sale
104.6
104.6
104.0
104.6
102.0
99.5
96.9
96.9
95.6
97.2
97.2
97.2
97.2
97.2
98.5
98.5
98.5
98.5
99.2
99.2
99.2
99.2
912
99.2
99.2
99.2
99.2
101.7
Retail
98.9
98.9
98.9
98.
98.
100.
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlotfs, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Tablb 142. — Douglas fir, dimension, No. 1
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
231
Year and month
1935
January
February..
March
April
May
June
July....
Aupust
September
October.-
November
December
1936
January
February
March
.\pril
May
June -
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
91.2
100.0
91.2
100.0
91i2
100.0
91.2
100.0
93.9
100.0
93.9
100.0
99.2
100.0
99.2
100.0
99.2
100.0
99.2
100.0
99.2
100.0
99.2
100.0
100.5
100.0
100.5
100.0
100.5
100.0
100.5
100.0
100.5
100.0
99.2
100.0
99.2
100.0
99.2
100. 0
99.2
100.0
99.2
100.0
99.2
100.0
100.5
100.0
101.9
100.0
103. 2
100.0
104.5
100.0
104.5
100.0
104.5
100.0
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January..
February
March
April
May
June
July
August
September..
October
November
December
1939
January.
February
March .
April
May
June
July.
August
September
Index
Whole-
sale
104.5
104.6
104.5
104.5
102.0
99.2
96.6
99. 1
99. 1
99.1
99.1
99.1
99.1
99.1
99.1
101.8
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Douglas flr, dimension, No. 1 common, 2 by 4 inches by 16 feet, S43; per M board feet.
Wholesale: In mixed carlots, miU to retail yard. f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
232
CONCENTRATION OF ECONOMIC POWER
Table 143. — Douglas fir, dimension, No. 1
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March..-
April
May
June -
July
August
September..-..
October
November .^.
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
91.1
94.4
91.1
94.4
91.1
96.0
91.1
95.9
94.1
98.7
94.1
101.4
100.1
102.5
100.1
102.5
100.1
103.2
100.1
161.4
100.1
100.9
100.1
100.9
101.6
100.9
101.6
101.8
101.6
101.5
101.6
101.5
101.6
101.5
100.1
101.6
100.1
101.5
100.1
101. 5
100.1
101.0
100.1
101.0
100.1
101.0
101.6
102.1
103.2
103.0
104.7
105.5
106.2
111.6
106.2
111.6
106.2
112.3
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
April
May
June.-
July...
August- - - -
September
October
November
December
1939
January
February...
March
April
May -
June.- -
July
August.-
September
Index
Whole-
sale
106.2
106.2
106.2
106.2
103.2
100.2
97.1
97.1
95.6
97.5
97.5
97.6
97.5
97.5
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
102.0
Retail
112.3
112.3
112.0
112.3
112.3
111.4
107.7
105.4
105.4
105.4
105.4
103.6
103.6
103.1
103.1
103.1
102.4
102.4
102.4
102.4
103.1
103.1
103.1
99.4
99.4
99.4
100.3
100.3
Specification: Douglas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
233
Table 144. — Douglas fir, dimension, No. 1
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU...
May
June
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August
September ...
October
November.
December .
1937
January
February
March .
Apra
May
Index
Whole-
sale
Retail
91.0
91.5
91.0
91.5
91.0
91.5
91.0
83.8
94.3
91.1
94.3
89.4
100.8
88.9
100.8
89.1
100.8
88.8
100.8
88.5
100.8
88.9
100.8
93.5
102.6
93.2
102.5
93.8
102.5
92.8
102.5
93.1
102.5
93.7
100.8
93.6
100.8
93.3
100.8
93.4
100.8
97.3
100.8
97.2
100.8
97.3
102.5
104.0
104.1
116.3
105. 7
116.0
107.4
116.4
107.4
107.3
107.4
107.3
Year and month
1937— Continued
June
July
AURUSt
September
(Ji'tober
November
December
1938
January
February...
March
April
May
Juno
July
August
September
October ._
November
December...
1939
January
February
March
Apri?.
May
June.
July
August
September.
Index
Whole-
sale
107.4
107.4
107.4
107.4
104.1
100.8
97.5
.5
9
2
2
2
2
2
98.8
98.9
98.9
98.9
98.9
102.2
Retail
106. 7
111.3
111.0
110.6
110.1
110.7
109.6
100.4
100.1
100.2
100.3
100.2
100.1
100.1
97.7
97.9
97.6
97.7
97.7
97.9
98.6
98.5
98.2
93.5
93.5
93.6
103.2
103.2
Specification: Douelas fir, dimension, No. 1 common, 2 by 4 inches by 16 feet, S4S; per M board feet.
Wholesale: In mixed carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER XIII
OAK FLOORING
DESCRIPTION OF THE INDUSTRY
The production of oak lumber in the United States exceeds that
of any other hardwood, and is surpassed by only three softwoods —
yellow pine, Douglas fir, and Ponderosa pine. In 1937, oak lumber
represented 6 percent of all lumber production and 36 percent of all
hardwood, according to the Census of Manufactures.^ The following
summary gives the amount produced and the average value at mill
for the years indicated.
Year
Production
Year
Production
1,000 board
feet
Average
value
1,000 board
feet
Average
value
1929. _.
1931...
2, 574, 495
953, 559
697, 595
$38.43
27.68
28.53
1935
1937
1, 194, 577
1, 581, 682
$27.15
29.60
1933...
Oak is produced in all States except those in the Rocky Mountain
area and the Dakotas. In 1937, 8 States, located in the Appalachians
south of the Ohio River and on the lower Mississippi, accounted for
68 percent of the national output. Map VI shows the geographical
location of the leading producing States, and table 145 gives the
1937 production, by States, as published in the Census of Manufac-
tures.
Table 145. — Geographical Distribution of oak lumber production, 1937
State
Louisiana
Tennessee
Arkansas
Mississippi
West Virginia..
Virginia
North Carolina
Kentucky.
Pennsylvania..
Texas
Production
1,000
board
feet
179, 425
171,616
169, 720
133, 097
131,990
104, 113
96,875
97, 879
84,955
70,153
Percent
of total
State
Production
Alabama
Ohio-- -.
Indiana
Missouri.-
Georgia
South Carolina
Illinois
Wisconsin-
other States (20) '.
1,000
board
feet
67, 141
53,394
46, 739
31,848
20,209
18, 396
16,836
15,667
Percent
of total
' California, Connecticut, Delaware, Florida, Iowa, Kansas, Maine, Maryland, Massachusetts, Michi-
gan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, Oklahoma, Oregon, Rhode Island,
Vermont, Washington.
Source: Census of Manufactures, 1937: Production of lumber by kind and by States, table 10, p. 517.
' Census of Manufacturers, 1937: Lumber and timber products not elsewhere cla-^sified, table 7, pp. 499, fT.
235
275852-
H— No. 33-
-17
236
CONCENTRATION OF ECONOMIC POWER
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CONCENTRATION OF ECONOMIC POWER 237
It is estimated that about one-half the production of oak is used in
the building industry, primarily as flooring, as the cost prohibits the
use of oak for most other construction purposes.
Although definite data are not available on the concentration of
production within the industry, the National Oak Flooring Manufac-
turers' Association estimates that nine firms produce 30 to 35 percent
of the national total.
In general, a firm producing oak flooring does not handle any other
important types of lumber. A few companies mill other types, but
the flooring mill is usually a separate unit.
There are two general groups of oak flooring — white and red, the
latter accounting for about 75 percent of production in September
1939. There are many grades and sizes of flooring. One producer
pubhshes quotations on 13 grades of eight sizes each. It was not
necessary to include all grades in the survey and, on the advice of the
industry, only one grade and size was priced as representative of all
types. This specification was "Flooring, oak, red, select, plain,
*%6 by 2% inches face, average length 4 feet." Seventy-five to 80 per-
cent of all oak flooring produced is of this size. The term "plain"
distinguishes plain sawed from quarter sawed,^ which is more costly.
The grading rules established by the National Oak Flooring Manu-
facturers' Association specify that the select grade, on the face, may
contain sap, and will permit pin worm holes, streaks, slight imper-
fections in working or a small tight knot^ not to exceed one every
3 feet. Some members of the industry distinguish between
"Appalachian oak," produced in Tennessee, West Virginia, Vii'ginia,
and the Carolinas, and "Southern oak," produced in Mississippi,
Arkansas, Louisiana, and adjoining areas, and consider the former
to have softer and finer texture, and therefore better quality than
the "Southern," but no distinction of this kind was made in the
present study.
PRICE STRUCTURE
Basing Point System.
Oak flooring is sold on a multiple basing-point system, with basmg
points at Memphis, Tenn.; Johnson City, Tenn; and Alexandria, La.
The delivered price to any destination is the f. o. b. basing-point price,
plus the lowest freight from any basing point to such destination. This
delivered price is rounded to the nearest 50-cent interval; thus a base
quotation of $65 per thousand board feet in carlots, plus a freight
charge of $7.80, would be quoted f. o. b. destination at $73, while, if
the freight charge were $7.70, the destination price would be $72.50
per thousand board feet. Using this plan,, the^purchaser in one city
may pay slightly more than the base price, plus freight, and the pur-
chaser in another city may pay slightly less. The National Oak
Flooring Manufacturers' Association publishes freight rates from each
of the basing points to all destinations.
Compliance with the basing-point system is not universal in the
industry, according to some manufacturers interviewed. One reason
for this is the lack of geographical concentration. With oak flooring
produced in over half the States, it would be difficult to obtain con-
formity by all mills to a system wherein the three basing points are
' Plain sawing is the cutting of lumber of consecutive cuts in order to obtain maximum yield. In quarter
sawed lumber, the cut is made parallel with the pith and approximately at right angles with the growth
rings, so that the grain forms an angle of 45 degrees or more with the face of the board.
238 CONCENTRATION OF ECONOMIC POWER
all located in the South. However, association members report that
the bulk of oak flooring is sold in accordance with the system described.
Sales at wholesale are made in carlots to building material dealers,
priced per thousand board feet, f. o. b. basing points, plus freight to
destination.
Channels of Distribution.
Sales are made either through brokers, who receive an 8 percent
discount, through commission men who receive 4 percent, or direct
from mill, either by traveling salesmen or on direct order. Most pro-
ducers sell on a Nation-wide basis. The usual discount for cash is 2
percent 10 days, or 2 percent, 10th proximo.
PRICE LEVELS AND TRENDS
Prices and Transportation Costs.
Destination prices at wholesale vary with the freight costs from
basing points. For example, assuming a base price at Memphis,
Tenn., of $60, the freight per thousand board feet to St. Louis, Mo., is
$4, or Qji percent of the delivered price of $64, while the freight to
Butte, Mont., is $16, or 21 percent of the delivered price of $76.^
Although freight rates change frequently, these changes seldom affect
the net destination price at- any city by more than $1 per thousand
board feet. Changes in the freight rate structure may alter the area
controlled by each basing point. For example, the rate effective in
December 1935, caused the delivered price at Cleveland, Ohio, to be
based upon freight from Johnson City, Tenn., where previously it had
been computed f. o. b. Memphis. Three meior changes in freight
rates occurred during the period covered by this survey — in December.
1935, July 1937, and September 1938. Table 147 illustrates the effective
rail freight rates, by destinations. The table does not show all minor
revisions 'in freight rates because of the practice of rounding freight
costs to the nearest 50-cent' interval. Many cities that are quite far
apart, geographically, have the same freight rates, due to the division
of the United States into freight rate zones, according to commodities.
The zone system of rates applies to carlot shipments.
' The percentages for all the cities are shown in table 146.
(CONCENTRATION OF ECONOMIC POWER
239
Table 146. — Ratio of transportation costs to wholesale delivered price of oak flooring,
September 1939
Wholesale
delivered
price
Freight cost
Region and city
Amount
(all-rail)
Percent of
delivered
price
Region I (New Enplnnd):
A. Portland, Maine
PerM
board feet
$69. 50
69.00
70.00
69.00
69.00
68.50
68.00
67.50
67.00
67.00
67.00
66.00
66.00
67.00
68.00
70.50
68.50
66.50
67.00
67.00
64.00
67.00
67.00
67.00
65.60
65.00
63.50
65.00
63.50
68.00
63.50
60.00
63.50
63.50
63.50
66.00
65.50
63.00
62.50
76.00
76.00
71.50
71.00
76.00
76.00
75.50
71.50
76.00
76.00
76.00
PerM
board feet
$9.50
9.00
10.00
9.00
9.00
8.50
8.00
7.50
7.00
7.00
7.00
6.00
6.00
7.00
8.00
10 50
8.50
6.50
7.00
7.00
4.00
7.00
7.00
7.00
5.50
5.00
3.50
5.00
3.50
8.00
3.50
13.7
B. Manchester, N. H
13.0
C. Burlington, Vt
14.3
D. Boston, Mass
13.0
E. Providence, R. I
13.0
F, Hnrtford, Conn ,
12.4
Region II (Middle Atlantic):
A. New York, N. Y....
11.8
B. Trenton, N. J . .
11.1
C. Philadel[)hia, Pa.
10.4
Region III (East North Central):
A. Cleveland, Ohio .
10.4
B. Detroit, Mich
10.4
C. Indianapolis, Ind
9.1
D. Chicago, 111. .
9.1
E. Milwaukee, Wis...
10.4
Region IV (West North Central):
A. Minneapolis, Minn
11.8
B. Fargo, N. Dak
14.9
C. Sioux Falls, S. Dak
12.4
D. Des Moines, Iowa.
9.8
E. Omaha, Nebr . .
10.4
F. Wichita, Kans ....
10.4
Q. St. Louis, Mo.
6.3
A. Wilmington, Del
10.4
B. Baltimore, Md .
10.4
C. Washington. D.«C... .
10.4
D. Charleston, W. Va . ...
8.4
E. Richmond, Va
7.7
F. Charlotte, N. C
5.5
O. Charleston, S. C...
7.7
H. Atlanta, Ga
5.5
11.8
Region VI (East South Central):
A. Louisville, Ky
B. Memphis, Tenn..
5.5
C. Birmingham, Ala .
Region VII (West South Central):
A. Little Rock. Ark ..
3.50
3.50
3.50
6.00
5.50
.3.00
2.50
16.00
16.00
11.50
11.00
16.00
16.00
16.60
11.50
16.00
16.00
16.00
5.5
5.6
5.5
B. Oklahoma City, Okla
9.1
C. Austin, Tex
8.4
I). Ilouston, Tex. .. ._ ..
4.8
E. New Orleans, La ,
4.0
Region VIII (Rocky Mountain):
A. Butte, Mont-..
21.1
B. Boise, Idaho
21.1
C. Cheyenne, Wyo
16.1
D. Denver, Colo
15.5
E. Salt Lake City, Utah
21.1
F. Reno, Nev
21.1
O. Phoenix, Ariz . ...
20.5
n. Albuquerque. N. Mex . .
16.1
Region IX (Pacific):
A. Seattle, Wash
21 1
B. Portland, Oreg
21.1
C. Los Angeles, Calif
21. 1
240
CONCENTRATION OF ECONOMIC POWER
Table 147. — Freight charges on oak flooring
Region and city
Freight charge (per 1,000 board feet)
Jan. 1935 Dec. 1936 July 1937 Sept. 1938
Region I (New England) :
A. Portland, Maine - -
B. Manchester, N. H
C. Biulington, Vt
D. Boston, Mass
E. Providence, R. I
P. Hartrord. Conn
Region II (Middle Atlantic):
A. NewYork, N. Y
B. Trenton, N. J
C. Philadelphia, Pa
Region III (East North Central) :
A. Cleveland, Ohio
B. Detroit, Mich
C. Indianapolis, Ind_-. _..
D. Chicago, m..-
E. Milwaukee. Wis
Region IV (West North Central):
A. Minneapolis, Minn -.
B. Fargo, N. Dak
C. Sioux Falls, S. Dak
D. Des Moines, Iowa
E. Omaha, Nebr
F. Wichita, Kans
0. St. Louis, Mo
Region Vt(South Atlantic) :
A. Wilmington, Del
B. Baltimore, Md
C. Washington, D. C
D. Charleston, W. Va
E. Richmond, Va
F. Charlotte, N. C
G. Charleston, S. C. -
H. Atlanta. Ga-- _._,
1. Miami, Fla ...
Region VI (East South Central):
A. Louisville, Ky-_
B. Memphis, Tenn
C. Birmingham, Ala
D. Jackson, Miss.
Region VII (West South Central):
A. Littb Rock, Ark..--
B. Oklahoma City, Okla
C. Austin, Tex
D. Houston, Tex
E. New Orleans, La
Region VIII (Rocky Mountain):
A. Butte, Mont
B. Boise, Idaho
C. Cheyenne, Wyo
D. Denver, Colo .
E. Salt Lake City, Utah
F. Reno, Nev..
G. Phoenix, Ariz
H. Albuquerque, N. Mex
Region IX (Pacific):
A. Seattle, Wash
B. Portland. Ores
C. Los Angeles, Calif
$9.00
9.00
9.50
9.00
9.00
8.50
8.50
7.50
7.00
7.00
7.00
6.00
6.00
6.50
7.50
10.00
8.00
6.00
7.00
7.00
3.50
7.00
7.00
7.00
5.50
5.00
3.50
5.00
3.50
8.00
0)
3.50
3.50
3.50
3.50
6.50
5.00
3.00
2.50
16.00
16.00
11.00
10.00
16.00
16.00
14.50
12.00
16.00
16.00
16.00
$8.00
7.50
8.50
7.50
7.50
7.50
7.00
6.50
6.00
6.00
6.00
6.00
6.00
6.50
7.50
10.00
8.00
6.00
7.00
7.00
3.50
6.00
6.00
6.00
5.50
5.00
3.50
5.00
3.50
8.00
(0
3.50
3.50
3.50
3.50
6.50
5.00
3.00
2.50
16.00
16.00
11.00
10.00
16.00
16.00
14.50
12.00
16.00
16.00
16.00
$8.50
8.50
9.50
8.50
8.50
8.00
8.00
7.00
6.50
7.00
7.00
6.00
6.00
6.50
7.50
10.50
8.00
6.00
7.00
7.00
3.50
6.50
6.50
6.50
5.50
5.00
3.50
5.00
3.50
8.00
(')
3.50
3.50
3.50
3.50
6.00
5:00
3.00
2.50
15.00
15.00
11.00
10. eo
14.50
15.00
14.50
11.00
15.00
15.00
15.00
$9.50
9.00
10.00
9.00
9.00
8.60
8.00
7.50
7.00
7.00
7.00
6.00
6.00
7.00
8.00
10.50
8.50
6.50
7.00
7.00
4.00
7.00
7.00
7.00
5.50
5.00
3.50
5.00
3.50
8.00
(')
3.50
3.50
%m
3.50
6.00
5.50
3.00
2.50
16.00
16.00
11.50
11.00
16.00
16.00
15.50
11.50
16.00
16.00
16.00
1 One basing point.
Changes in freight rates are not effective at the same time for each
of the three basing points. Adjustments are made from time to time
between the rates from the three bases to various destinations in an
effort to equalize markets and competitive conditions between members
of the industry, trade areas, and common carriers.
Retail prices are quoted per thousand board feet delivered to the
job site. Prices may vary between contractors purchasing from the
same dealer. In quoting a price to a contractor, the dealer considers
the buyer's volume of purchases, whether or not he buys exclusively
from one dealer, his credit rating, and various other factors. Retail
CONCENTRATION OF ECONOMIC POWER
241
dealers have a tendency to maintain more stable prices than are quoted
by manufacturers and usually disregard minor fluctuations in the
wliolosale market.
Geographical Differences in Prices and Spreads. (See chart XVII
and table 148.)
While variations in wholesale prices between localities are due
entirely to freight differentials, retail prices may be affected by many
purely local factors. The following summary shows the typical
wholesale and retail prices by cities.
Price range (per 1,000 board
feet)
$60 to $64.
$65 to $69.
$70 to $74.
$75 to $79.
$80 to $84.
$85 to $89.
$90 to $94.
Number of cities
Whole-
sale
Retail
Price range (per 1,000 board
feet)
$95 to $99
$100 to $104....
$105 to $109
$110 to $114....
$115 to $119
$120to$124_-_.
$125 and over.
Number of cities
Whole-
sale
Retail
This table reveals much more marked geographical variations at retail
than at wholesale. While the largest number of retail quotations falls
within the $75 to $79 range, the median is in the $85 to $89 range.
The wholesale median is within the $65 to $69 range where the largest
number of quotations are found.
The spread between wholesale and retail prfces varies greatly from
city to city. The following table gives the averages of the typical
wholesale and retail quotations in each region, and the difference
between the two:
Region
Region I. New England..
Region n. Middle Atlantic
Region III. East North ("'entral
Region IV. West Morth Central-
Region v. South .Vtlantic
Region VI. East 8outh Central. .
Region VII. West South Central
Region VIII. Rocky Mountain..
Region IX. Pacific
United States average
Whole-
sale
price
Retail
price
Per 1,000 board feet
$69. 17
67.50
66.60
67.36
65. 72
62. 62
64.10
74.19
76.00
$85.00
79.17
79.64
86.61
79.06
67. 50
88.00
111.74
91.23
68. 12 ! 87. 20
Difference
Amount
$15. 83
11.67
13.04
19.25
13.34
4.88
23.90
37. 55
15.23
19.08
Percent
23
17
20
29
20
8
37
51
20
28
The averages of wholesale and retail prices for all regions were $68.12
and $87.20, respectively. This is an average spread of $19.08, or 28
percent. The smallest differential between wholesale and retail
prices was in the East South Central States, all but one of which are in
the list of eight States leading in oak production. The widest differ-
ence occurred in the Rocky Mountain area, in which, according to the
Census of Manufactures, no oak is produced. Six of the eight cities
in that area reported retail prices over $100 per thousand with one
reporting $142.50. The highest wholesale price reported for any city
242
CONCENTRATION OF ECONOMIC POWER
in the region was $76 per thousand board feet. Local market condi-
tions may account for the wide spreads in the Rocky Mountain area.
Many retail dealers explained that little oak flooriag of the specified
Chart XVII
OAK FLOORING
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES
*I50
>40
130
120
110
100
90
80
70
60
50
940
50
U.S.BUREAU OF LABOR STATISTICS
5E"" 80
4D»
3C, I
70..46 51 I '<^
5Ha60^ ' 'SC
7E>*
6B*
30 %^'ic a SA
7A. \»«1
5D
•3A
5f
60 70 80
WHOLESALE PRICES
RETAIL PRICES
90
ISO
120
110
100
90
80
70
50
100
grade was sold, most of the flooring used being a cheaper grade of oak
or other type of wood.
Price Trends. (See tables 149 to 158.)
The wide fluctuations in prices of oak flooring are illustrated by
chart XVIII, showing indexes tor the United States and for each of
CONCENTRATION OF ECONOMIC POWER
243
the nine regions for the period 1935 through 1939, with average prices
in the third quarter of 1939 as a basis for comparison. In the country
as a whole, prices at wholesale declined throughout 1935 until by
Chaet XVIII
OAK FLOORING
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 MOO
"'°!* UNITED STATES ■ W»ighUd Averogt Pfitt REGION I - SOUTH ATLANTIC '^"5*
■NOLCULC'
r\
, 1 rn. .
Ai
1
^
LcJ
^.c»j y/-| ^
1
J V
[
■i
K1U\.s,
r^^"
H i
^ w^
n,
^
m r-"" '4' V"*f^
s
/ V
REGION I - NEW
ENGLAND
1
1
,WHOL(»L[
/ 1
r1^ " "
T
h"//>\^
Ai
K
UF rVp'
y V, :
REG
ON n
- MIDDLE ATLANTIC
1
«
OLM*LI-r^^ N
>
/
^
€lj
\
__ l| muil'
ir
■-tr
\
/ V
1
REGION
in - EAST NORTH CENTRAL
/•
•'""•-'Z*^
■\ / Vn r
A/
i^W=W nr
^^TT
^rV 1
REGION •mn - ROCKY MOUNTAIN
REGION
H - WEST NORTH CENTRAL
^
■OUULC
n^
1
r-^-u..
ZL
^
ua^«-
\r
^-v^
s
77|
REGION
ai-
EAST SOUTH CENTRAL
1
BOl.t««.l'
F-=^
ks
1
,
^
H
rv '^
' ir^
^
/ V
REGION
m - WEST SOUTH CENTRAL
1
r\
V^^
- , Wi J\.
H
joi
■ HP';' "
N
Ht
1 1
•HOICUII
f^
W...
rv>
j^i
w^ ^r
Y " i 1
REGION
IX - PACIFIC
/^^
^nwicw
It
y
jf IL ^.
^.
nl
"*^mTAlL
i^
■Mf
~"U
L-^
1933 1936 1937 1936 1939 1940 1941
STATES BUREAU Of LABOA STATISTICS
I93S 1936 1937 1938 1939 1940 1941
the year end, they were down by 19 percent. Early in 1936 they rose
13 percent then dropped back, reaching previous level by September
1936. Fron\ this point prices of flooring rose rapidly as construction
increased and by September 1937 reached the peak for the period
covered by the survey, representing a total gain of about 45 percent
244 CONCENTRATION OF P^CONOMIC POWER
from the 1935 low,. Prices then declined until July 1938, falling 24
percent, followed by a gradual rise until the spring of 1939. After a
period of slight weakening the trend during August and September was
upward, and prices in September 1939 were at approximately the same
level as in January 1935.
Wholesale prices in each of the nine regions followed approximately
the same course as those in the Nation generally, with only minor varia-
tions due to changes in transportation costs.
Retail prices of oak flooring on the whole, followed a course parallel
to those in the wholesale markets although changes were less frequent.
Beginning in January 1935, prices showed a slight decline with little
change in 1936, while wholesale prices varied over a wide range. In
the first half of 1937, however, they rose 19 percent with most of the
change occurring in the first 3 months. Prices started to decline in
September 1937 and by the middle of 1938 had fallen about 8 percent.
From that time through September 1939, the level did not vary over
2 percent. It must be noted, of course, in comparing wholesale and
retail prices, that a change of $1 in price effects a much larger per-
centage change in wholesale than in retail prices since the wholesale
price is much lower.
In some regions, retail prices for oak flooring have adhered more
closely to the wholesale pattern than did the retail prices as a whole,
showing higher levels in 1937. This is true for the East North
Central, West North Central, East South Central, Rocky Mountain,
and Pacific States, where the trend of retail prices does not differ
significantly from the wholesale trend. It is especially interesting to
note that, although the general trend of retail prices is quite similar
to the wholesale prices in several regions, the closest relationship
between the two series is to be found in the producing areas of the
South.
In the New England area, retail prices showed no appreciable change
until the beginning of 1936, when they dropped 15 percent. Prices
remained relatively stable from then until 1937, when they rose to
approximately the same level as in 1935. Starting in the latter part
of 1937, a gradual decline of 11 percent occurred until the spring of
1939, after which the index rose about 5 percent by midsummer.
In the South Atlantic States, the index rose from 105 in January
1935 to 118 in the summer of 1937, by 6 percent steps at the beginning
of 1936 and 1937. From September 1937 the trend was downward
until 1939, with a rise during the base period from 96 in June to 104
in September.
In the West South Central region the retail price index followed the
drop in wholesale prices in 1935, falling about 13 percent by the end
of that year, but rerhained unchanged through 1936. While the
wholesale level rose 45 percent in 1937, the retail index for this area
increased only 12 percent in the first 2 months of the year, then
reniained practically unchanged until the end of 1938, when a 4
percent increase occurred. Prices in 1939 showed little change
through September.
CONCENTRATION OF ECONOMIC POWER
Table 148. — Oak flooring
[Typical wholesale aud retail prices for selected cities, September 1939]
245
Prices
Region and city
Prices
Region and city
Whole-
sale
Retail
Whole-
sale
Retail
EEQION I. NEW ENGLAND
A Pnrt.lftnrt, Aiainp.
$69.50
70.00
68.50
68.00
67.50
67.00
67.00
67.00
66.00
66.00
67.00
68.00
70.50
68.50
66.50-
67.00
67.00
64.00
67.00
67.00
65.50
65.00
63.50
$85.00
85.00
85.00
75.00
85.00
77.50
72.00
85.00
88.20
75.00
78.00
65.00
92.00
108.00
92.00
76.50
90.00
82.75
77.50
75.00
75.00
95.00
70.00
REGION V. SOUTH ATLANTIC— Con.
Q. Charleston, S. 0 . .
$65.00
63.60
68.00
63.50
60.00
63.60
63.50
66.00
66.50
63.00
62.50
76.00
76.00
71.60
71.00
76.00
76.00
75.50
71.60
76.00
76.00
76.00
$76 00
C. Burlington, Vt
H. Atlanta, Oa
80.00
F. Hartford, Conn
I. Miami, Fla
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky
85 00
REGION n. MIDDLE ATLANTIC
A. New York, N. Y
61.00
B. Trenton, N. J
R. Memphi.s, Tenn
73.00
C. Philadelphia, Pa.
D. Jackson, Miss
80 00
REGION in. EAST NORTH CENTRAL
A. Cleveland, Ohio
REGION Vn. WEST SOUTH CENTRAL
A. Little Rock, Ark
76.00
B. Detroit, Mich—
C. Indianapolis, Ind
B. Oklahoma City, Okla
C. Austin, Tex
95.00
110 00
D. Chicago, 111
D. Houston, Tex
83.00
E. Milwaukee, Wis
E. New Orleans. La
80.00
REGION IV. WEST NORTH CENTRAL
A Minneapolis, Minn
REGION Vm. ROCKY MOUNTAIN
A. Butte, Mont ..
142.50
B. Fargo, N. Dak
B. Boise, Idaho
125.00
C. Sioux Falls, S. Dak ;..,
C. Cheyenne, Wyo _..
85.50
D, Des Moines, Iowa
D. Denver, Colo
E. Salt Lake City, Utah
93.00
E. Omaha, Nebr
119 40
F Wirhita, TTfiTi.q
F. Reno, Nev
120 50
0. St. Louis, Mo
Q. Phoenix, Ariz .,
101.00
REGION V. SOUTH ATLANTIC
A. Wilmington, Del ..
H. Albuquerque, N. Mex
REGION IX. PAOnC
A. Seattle, Wash
107.00
B. Baltimore, Md
105. 0(
D. Charleston, W. Va
B. Portland, Oreg
87.0"
E. Richmond, Va ^.
F. Charlotte, N. C ..
C. Los Angeles. Calif
81.6
Specification: Oak, red, flooring, select, plain, iM«- by 12H-inch face, averse length 4 feet; per M boat
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
246
CONCENTRATION OF ECONOMIC POWER
Table 149. — Oak flooring
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.(1]
Year and month
1935
January
February
March-
April
May
June..
July
August
September
October
November _-_
December
1936
January
February -
March
April
May
June - -
July .--
August --
September
October
November .--
December
1937
January
February
March -.
April
May - --
Index
Whole-
sale
103.3
103.3
94.2
94.2
94.2
97.2
97.2
97.2
89.6
89.6
89.6
83.8
83.
92.
100.
111.0
115.6
117.1
117.1
118.7
Retail
93.5
93.5
93.1
93.1
93.1
93.2
93.0
92.2
91.8
90.3
90.3
90.0
90.4
90.5
90.7
90.8
90.9
90.9
90.9
90.9
90.9
91.0
91.2
91.6
102.7
106.1
108.0
108.5
108.6
Year and month
1937— CJontinued
June
July --..
August
September
October
November
December
1938
January
February
March
April
May -
June
July...
August
September
October.. ..
November.
December
1939
January
February
March
April..
May. —
June.
July
A ugust
September
Index
Whole-
sale
118.7
116.3
117.8
120.9
116.3
116.3
110.3
102.7
102.7
102.7
104.2
104.2
93.6
92.1
98.2
98.5
98.5
103.0
103.0
99.2
103.0
107.6
107.6
107.6
97.0
97.0
100.0
103.0
Retail
108.9
108.8
108.9
106.9
105.4
105.2
105.0
102.1
102.0
100.6
ioo.o
100.0
99.5
99.2
99.6
99.6
99.5
98.7
99.2
99.4
99.5
99.4
99.2
99.0
99.1
99.3
99.6
100.8
Specification: Oak, red, flooring, select, plain, i^ie by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f.o.b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
247
Table 150. — Oak flooring
REGION I. NEW ENGLAND
[Wholwale and retail price indexes — July-Peptember 1939=100.0]
Year ami niontli
Index
1935
January
February
March
April
May
June -
July
August
September —
October
November
December
1936
January
February
March
April
May
June.— ---
July.
August
September
October
November
December
1937
January
February
March
April.. -
May
Whole-
sale
102.9
102.9
94.0
94.0
94.0
97.0
97.0
97.0
89.5
89.5
89.5
82.9
82.9
85.9
93.4
93.4
93.4
93.4
93.4
93.4
82.9
85.9
91.9
99.3
109.8
114.3
115.7
115.7
117.2
Retail
10^.7
109.7
109.7
109.7
1C8. 5
108.5
108.5
108.5
108.5
108.5
108.5
108.5
93.6
93.6
93.6
93.6
93.6
92.6
92.6
92.4
92.*4
92.4
92.9
93.1
96.6
95.5
97.3
104.4
104.4
Year and month
1937— Continued
June
July
August ,-..
September
Octolter
November
December.
1938
January
February.
March -
April...
May .
June
July
August
September...
October
November
December
1939
January
February
March
Ap-l
Ah,^.
June
July -.
August
September
Index
Whole-
sale
117.2
115.6
117.1
120.1
115.6
115.6
109.7
102.2
102.2
102.2
103.7
103.7
93.3
91.8
97.7
98.5
98.5
103.0
103.0
99.3
103.0
107.5
107.5
107. 5
97.0
97.0
100.0
103.0
Retail
107.9
107.9
107.9
107.9
107.5
106.6
106.6
102.9
102.9
102.0
102.0
102.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
96.3
95.8
95.8
95.8
99.6
99.6
100.2
100.2
Specification: Oak, red, flooring, select, plain, 'Me by 2H-inch face, average legth 4 feet; per M board feet.
Wholesale: Carlots, mill to retail yard, f.o.b. cars destination.
Retail- Dealer to contractor, delivered to job site, city.
248
CONCENTRATION OF ECONOMIC POWER
Table 151. — Oak flooring
REGION n.-MIDDLE ATLANTIC
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January.
February
March
April
May -
June
July
August -.
September
October
November
December
1936
January
February
March
April
May - ---
June ---
July
August
September
October
November
December
1937
January
February
March
April.-.-
May..- .-
Index
Whole-
sale
103.
103.
94.
94.
94,
97.
97
97.
90.
90.
90,
83.
83.
86.
93.
93.
93.
93.
93.
93.
83.
86.
92.
100.
no.
115.
116.
116.
118.
Retail
Year and month
Whole-
sale
1937— Continued
Jiine
July..-.
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September.
October.
November
December
1939
January
February
March
April-.
May -
June
July
August
September
Index
118.2
116.6
118.1
121.2
116.6
116.6
110.6
103.0
103.0
103.0
104.5
104.6
93.9
92.4
98.4
98.5
98.5
103.0
103.0
99.2
103.0
107.6
107.6
107.6
97.0
97.0
100.0
103.0
Retail
100.0
100.0
100.0
100.0
99
99.8
99.8
99.8
99.8
99.8
100.5
Specification: Oak, red, flooring, select, plain, i^e by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 152. — Oak flooring
REGION III— EAST NORTH CENTRAL
(Wholesale and retail price indexes— July-September 1939=100.0]
249
Year and month
1935
January
February
March
April
May
June.
July
August
September -.
October
November
December
1936
January.
February
March
April
May
June..
July
August
September
October
November
December
1937
January
February
March
April. _
May
Index
Whole-
sale
103.
103.
93.
93.
93.
83.
83.5
86.6
94.3
94.3
94.3
94.3
94.3
94.3
83.5
86.6
92.8
100.5
111.3
115.9
117.5
117.5
119.0
Retail
92.4
92.4
92.4
92.4
92.4
92.4
92.4
92.4
92.4
92.4
92.4
92.3
90.8
90. S
90.8
90.8
90.8
90.8
90.8
90.8
93.2
93.2
93.2
93.2
118.3
118.3
118.3
118.3
118.3
Year and month
1937— Continued
June
July
August
September
October.
November
December
1938
January
February
March
April
May
June .
July
August
September
October
November
December
1939
January
February _.
March '...
Apriy
May
June
July
August
September
Index
Whole
sale
119.0
117.0
118.5
121.6
117.0
117.0
110.8
103.1
103.1
103.1
104.6
104.6
93.8
92.2
98.4
98.5
98.5
103.1
103.1
99.2
103.1
107.7
107.7
107.7
96.9
96.9
100.0
103.1
Retail
118.3
118.3
118.3
112.4
112.4
112.4
112.4
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
99.2
99.2
99.2
99.2
99.2
99.0
99.0
99.4
99.4
Specification: Oak, red, flooring, select, plain, ifie by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard. f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
250
CONCENTRATION OF ECONOMIC POWER
Table 153. — Oak flooring
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July- September 1939=100.0]
Year and month
Index
1935
January..-
February
March
April
May
June -.
July
August
September
October
November...
December...
1936
January
February..
March
April.- —
May.- ---
June
July
August
September
October
November.
December —
1937
January.-- --
February
March.--
April.- -
May --.
Whole-
sale
102.5
102.5
93.2
93.2
93.2
96.3
96.3
96.3
88.5
88.5
88.5
83.9
83.9
87.0
94.7
94.7
94.7
94.7
94.7
94.7
83.9
87.0
93.2
J 00. 9
111.8
116.4
118.0
118.0
119.5
Retail
98.4
98.4
98.4
98.4
96.9
97.4
96.9
95.4
95.4
95.4
95.4
95.4
92.4
92.4
92.4
91.8
91.8
91.8
91.7
91.7
89.6
89.6
89.6
89.6
96.0
98.9
105.1
107. 0
108.7
Year and month
1937— Continued
June -
July— - .--
August
September -
October
November
December
1938
January
February
March 1
April
May
June
July
August
September
October
November
December
1939
January
February
March - -
April - -
May
June
July
August
September...
Index
Whole-
sale
119.5
11£.4
118.0
121.1
116.4
116.4
110.2
102.5
102.5
102.5
104.0
104.0
93.2
91.7
97.9
98.5
98.5
103.1
103.1
99.2
103.1
107.7
107.7
107.7
96.9
96.9
100.0
103.1
Retail
110.6
110.6
110.6
113.8
112.2
112.2
112.2
112.4
112.4
111.9
110.8
110.8
104.3
99.0
100.6
100.6
99.8
98.7
99.1
99.4
99.0
99.6
99.6
99.2
101.2
Specification: Oak, red, flooring, select, plain, '^e- by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
251
Table 154. — Oak flooring
REGION V. SOUTH ATLANTIC
[Wholesale and retaU price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
.\pril -.
May
June -
July-
August-
September
October
November
December __-
1936
January
February
March
April
May
June -.
July
August- ---
September
October
November. --
December
1937
January-- -..
February
March
."V-pril
May
Index
Whole-
sale
103.
103.
93.
93.
93.
96.
96.
96.
83.6
86.7
94.4
94.4
94.4
94.4
94.4
94.4
83.6
86.7
92.9
100.6
111. 5
116.1
117.7
117.7
119.2
Retail
104.9
104.9
104.9
104.9
104. 9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.9
111.8
112.3
118.1
118.1
118.1
Year and month
1937— Continued
June -
July
August --.
September
October ,
November -
December
1938
January . _ -
February
March
April
May
June
July
August -.-
September
October
November-
December
1939
January -
February
March
April-..
May -
June
July
August-
September
Index
Whole-
sale
119.2
116.6
118.1
121.2
116.6
116.6
110.4
102.6
102.6
102.6
104.2
104.2
93.4
91.8
98.0
98.5
98.5
103.1
103.1
99.2
103.1
107.7
107.7
107.7
96.9
96.9
100.0
103.1
Retail
118. 1
118.1
118.1
118. 1
112.3
111.9
110.9
107.4
107.4
107.0
104.0
104.0
104.0
103.6
103.6
103.6
103.6
95.2
95.2
96.5
96.5
96.4
96.4
96.3
96.3
97.1
98.7
104.3
Specification: Oak, red, flooring, select, plain, ^Me- by 2J4-inches face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. h. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
275Rri2— 41— No. 32
252
CONCENTRATION OF ECONOMIC POWER
Table 155. — Oak flooring
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes — July-September 1939= 100.0]
Year and month
1935
January
February
March
April
May ,
June
July
August.,
September. _
October
November .-...
December '.'..
1936
January ,
February
March
April..
May.
June.
July....
August
September.
October
November
December
1937
January...
February
March
April
May
Index
Whole
sale
103.3
103.3
93.4
93.4
93.4
96.7
96.7
96.7
88.4
88.4
88.4
83.4
83.4
86.7
95.0
95.0
95.0
95.0
95.0
95.0
83.4
86.7
93.4
101.7
113.3
118.7
119.9
119.9
121.6
Retail
95.9
95.9
95.9
98.7
98.7
98.7
91.9
91.9
91.9
87.8
90.9
95.9
95.9
95.9
95.9
95.9
95.9
88.9
90.9
94.9
100.8
109.1
112.1
112.1
112.1
112.1
Year and month
1937— Continued
June _ i.
July. _
August a
September
October.-
November
December
1938
January
February
March
April. _
May
June.- _-
July
August.-
September
October
November
December
1939
January
February
March-
April i.
May--
June
July
August
September.
Index
Whole-
sale
121.6
lia3
119.9
123.3
118.3
118.3
111.6
103.3
103.3
103.3
105.0
105.0
93.4
91.7
98.3
98.3
98.3
103.3
103.3
99.2
103.3
108.3
108.3
108.3
96.7
96.7
100.0
103.3
Retiil
112.1
111.5
112.1
113.3
111.5
111.5
108.5
105.5
105.5
105.5
106.1
106.1
101.3
100.7
103.7
103.7
103.7
105.5
105.5
101.0
102.8
104.6
104.6
104.6
99.8
100.4
Specification: Oak, red, flooring, select, plain, 'He- by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 156. — Oak flooring
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
253
Year and month
1935
January.... _.
February
March
April
May.-
June
July
August
September '.
October ^
November
December -_.
1936
January
February
March.
April
May
June
July
August
September
October...
November
December ...
1937
January _
February
March
April
May
Index
Whole-
sale
103.2
103.2
93.5
93.0
93.5
96.8
96.8
96.8
88.6
88.6
88.6
83.8
83.8
87.0
95.1
95.1
95.1
95.1
95.1
95.1
83.8
87.0
93.5
101.6
113.0
117.9
119.5
119.5
121.1
Retail
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
88.1
88.1
88.1
88.1
88.5
88.5
88.5
88.5
88.5
88.5
88.5
88.5
88.5
88.5
88.5
95.8
96.2
96.2
96.2
96.2
Year and month
1937— Continued
June
July
August.
September
October
November
December
1938
January
February _
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July.
August
September-
Index
Whole-
sale
121.1
117.7
119.4
122.6
117.7
117.7
111.3
103.1
103.1
103.1
104.8
104.8
93.4
91.8
98.3
98.4
98.4
103.2
103.2
99.2
103.2
108.1
108.1
i08.1
96.8
96.8
100.0
103.2
Retail
96.2
96.2
96.2
96.2
96.2
96.2
96.2
95.9
95.9
95.9
95.9
95.7
95.7
95.7
95.7
95.7
99.4
99.4
99.4
99.4
99.5
99.5
99.5
99.5
99.5
99.5
100.9
Specification: Oak, red, flooring, select, plain, ^Ma- by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site. city.
254
CONCENTRATIOI>J OF ECONOMIC POWER
Table 157. — Oak flooring
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes — July-September 1939 = 100.0]
Year and month
Index
Whole-
sale
1935
January
February
March-
April
May
June
July
August
September
October
November
December. _
1936
January
February
March -
April..
May
June
July
August
September
October
November.-.
December .
1937
January
February
March
April
May
102.1
102.1
93.7
93.7
93.7
96.5
95.1
95.1
88.2
88.2
88.2
84.1
85.3
88.1
95.1
95.1
95.1
95.1
95.1
95.1
85.3
88.1
93.7
100.7
110.6
113.9
116.2
116.2
117.6
Retail
109.3
109.3
103.1
103.1
103.1
104.6
101.6
101.6
100.0
97.7
97.1
95.3
95.3
95.3
95.5
95.5
95.5
95.5
95.5
95.5
92.8
92.8
92.8
95.4
100.1
106.6
112.0
112.6
112.6
Year and month
1937— Continued
June
July
August -
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July-...
August
September
Index
Whole-
sale
117.6
114.0
115.4
118.2
114.0
114.0
108.4
101.4
101.4
101.4
102.8
102.8
93.0
91.6
97.2
98.6
98.6
102.9
102.9
99.3
102.8
107.0
107.0
107.0
97.2
97.2
100.0
102.8
Retail
112.6
112.6
112.6
112.6
112.6
109.7
110.3
109.4
107.4
105.3
105.3
106.7
106.7
105.3
104.9
104.9
101.9
102.1
102.1
102.3
102.3
102.3
102.3
98.3
98.1
100.1
100.1
99.8
Specification: Oak, red, flooring, select, plain, ^Me- by 2H-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
255
Table 158. — Oak flooring
REGION IX. PACIFIC
[Wholpsrtle and retail price indexes— July-September 1939=100.0]
Year and nionlli
January
February...
March
April
May
June
July
August
September-
October
Xovember.
December..
January
February ..
March
.^.pril
May
June.
July...
.\ugust
September.
October
November.
December..
January..
February.
March
April.
1935
1936
110.8
114.9
116.2
116.2
May - i 117.6
Index
Whole-
sale
102.7
102.7
94.6
94.6
94.6
97.3
97.3
97.3
90.5
90.5
90.5
86.5
95.
95.
95.
95.
95.
95.
86.
89.
94.
101.
Retail
89.4
89.4
89.4
89.4
89.4
89.4
89.4
85.6
85.6
85.6
85.6
85.6
85.6
85.6
85.6
86.0
86.8
86.8
86.8
101.3
114.6
114.6
114.9
114.9
Year and montli
1937— Continued
June.
July
August
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June.
July ---.
August
September
Index
Whole-
sale
117.6
113.5
114.9
117.6
113.5
113.5
108.1
101.4
101.4
101.4
102.7
102.7
93.2
91.9
97.3.
98.6
98.6
102.7
102.7
99.3
102.7
106.8
106.8
106.8
97.3
97.3
100.0
102.7
Retail
114.9
114.9
114.9
114.9
109.4
108.6
108.6
107.7
107.7
96.8
95.0
95.0
95.0
95.0
97.5
97.1
97.1
97.1
101.2
101.2
101.2
99.9
98.2
98.'^
99.0
100.0
100.0
100.2
Specification: Oak, red, flooring, select, plain, i?i6- by 2M-inch face, average length 4 feet; per M board
feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER XIV
YELLOW PINE
DESCRIPTION OF THE INDUSTRY
The production of yellow pine in 1937 was 7,691,476,000 board
feet, exceeding that of any other kind of lumber,' and representing
approximately 30 percent of the total volume of lumber produced in
the nation and 36 percent of all softwood. The following table
shows the production and average mill value of yellow pine, 1929-37,
as published in the 1937 Census of Manufactures.^
Production
1
Year
Productioa
Year
1,000 board
feet
Average
value at
mill
1,000 board
feet
Average
value at
mill
1929...
11, 629, 689
4, 429, 643
4, 445, 577
$25. 66
16.99
17.91
1935..
5, 960, 246
7,691,476
$18. 24
1931.
1937
22.18
1933
YeUow pine is produced in 19 States, with 10 States producing 95
percent of the national total. These 10 States, with the single
exception of Arkansas, border on the east coast, extending- from Vir-
ginia along the Atlantic seaboard and the Gulf coast to Texas. Map
VII shows the geographical area in which production is heavy, and
the following table gives production, by States, in 1937.
Table 159. — Geographical distribution of production of yellow pine, 1937
state
Alabama
Texas
North Carolina
Mississippi
Arkansas
Louisiana
Georgia
Production
1,000 board
Percent of
feet
total
1, 121, 482
15
953,659
12
862, 957
11
846,882
11
791,968
10
738, 148
10
724, 219
9
State
Florida
South Carolina..
Virginia
Oklahoma
Tenness'^e
other States (7) >
Production
1,000 board
feet
521, 455
416,920
413, 705
144, 216
96,818
59,047
Percent of
total
' Other States include Delaware, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, and West
Virginia.
Source: Census of Manufactures, 1937: "Production of lumber by kind and by States," table 10, p. 515.
A large number of mills are engaged in sawing yellow pine lumber,
and none of these is large enough to dominate the industry. Data
from the Department of Commerce show that the four leading firms
produce only 7 percent of the national total. Many small, portable
' Census of Manufactures, 1937: "Lumber and timber products not elsewhere classified," table 7. p 507.
257
258
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 259
mills are used in cutting pine lumber and, as little capital is necessary,
most of these are independently owned.
The trade association for the industry lists approximately 75
general and 30 specialty products manufactured' by its member
mills. These cover almost all uses for lumber, from toy stocks to'
massive ship timbers. Of the many types of yellow pine lumber used
in residential construction, the one selected for pricing in this survey
was "Boards, No. 2 common, 1 by 8 inch, standard lengths, short
leaf." The trend of prices for boards should show the price trend of
other yellow pine used in residential construction.
PRICE STRUCTURE
Method of Computing Delivered Prices.
Theoretically, delivered prices of yellow pine may be computed by
adding freight costs to f. o. b. mill prices. Each mill that furnished
prices for the survey quoted an f. o. b. mill price, to which was added
freight cost to any desired destination. Freight charges were based
on freight rates obtained from the Interstate Commerce Commission,
various railroad companies, and from the lumber producers. No
water freight costs could be obtained as such costs include not only
freight rates but storage, stevedoring, and insurance. In certain
areas rail costs from mill to port and port to destination would also
be involved. Due to these difficulties, all destination prices for yellow
pine at wholesale in this survey are computed on f. o. b. mill prices plus
rail transportation costs. They may, therefore, not be entirely
accurate for some points.
Under.the N. R. A. code, yellow pine was sold on a multiple basing-
point system, with basing points for each of three sales areas, and
certain freight absorptions or additions specified for each. The
basing points for west of the Mississippi were Elizabeth and Alexan-
dria, La., and for the central territory the basing point was Hatties-
bu^g. Miss. For the east coast, the delivered price was f. o. b. mill,
plus 13% cents per 100 pounds freight charge from Goldsboro, N. C,
to certain Virginia cities, plus actual freight from the Virginia cities to
point of destination.
However, most manufacturers interviewed reported that the f. o. b.
mill price is frequently cut to bring the deUvered price in line with
that of mills more favorably situated freightwise. The bulk and
weight of lumber make freight costs an important element in the
dehvered price. The amount of change in the price of lumber and
the amount of freight absorption vary through time and with each
destination. Certain manufacturers do not attempt to sell in areas
where they consider freight costs to be too great.
Prices of yellow pine arc also affected by competition with Douglas
fir in certain regions. Along the east coast ^ and in the West North
Central area the delivered costs of the two species are approximately
the same. As the two typos of lumber may be used for many of the
same purposes, prices may be reduced by producers of either in an
effort to obtain a desired order.
A very important element in the production and sale of yellow pine
is the number of small, usually portable, mills. As previously
mentioned, these mills require small capital and only a few employees.
' Douglas fir is shipped to tbe east coast by water through the Panama Canal.
260 CONCENTRATION OF ECONOMIC POWER
Usually they sell to a more or less local market, and therefore are
not subject to Federal regulations governing interstate business, such
as the provisions of the Fair Labor Standards Act. The employees
are frequently farmers or farm laborers who work at the mills to obtain
a little ready cash during periods when farm work is slack. As a
result, the unit cost of production in the small mill may be less than
in large mills selling across State lines and employing a large number
of men throughout the year. The small mills frequently sell at prices
so low that large mills cannot enter the local market, but must depend
altogether on interstate business.
Commission to Distributor.
Yellow pine is sold to building material dealers direct from the
mill, through brokers, and by commission men. Sales direct from the
mill are made by traveling salesmen and by telephone and telegraph.
The only discount ordinarily allowed the buyer on this type of sale is
a cash discount of 2 percent for cash within 10 days, net 10th proximo.
Brokers are allowed a commission of 8 percent, part of which reflects
the assumption by the brokers of all credit risks and costs of collection.
The commission salesman, who assumes no credit risks, is allowed
5 percent.
The wholesaler with warehouse facilities receives the same discount
as the broker, but apparently plays an unimportant role in the sale
of this product. This type of wholesaler buys in carlots, stores the
lumber, and sells to small retailers in less than carlot quantities,
PRICE LEVELS AND TRENDS
Wholesale price quotations used in this survey are per thousand
board feet, carlots in mixed cars, mill to retail yard, f. o. b. cars,
destination. This implies delivery, f. o. b. cars, at the railroad siding
nearest the dealer's yard or warehouse. The retail price quotation
used was per thousand board feet, dealer to contractor, delivered to
job site, city.
Prices and Spreads.
The primary factor causing the geographical variation in the price
of southern yellow pine boards is transportation cost. Mills in any
section of the producing area soil at approximately the same price.
The delivered prices, however, vary according to destination with the
freight rate being the determining factor.
Pine boards of the type specified in this study are delivered to most
consuming centers in the South for approximately $5 per thousand
feet. Rail freight on shipments to Washington, D. C, runs $9 to $12;
when the mill price is $20, transportation costs amount to 60 percent.
If southern pine were shipped to Butte, Mont., the freight charges
would be approximately equal to the price at the mill. In other
words, the geographical variation, if the lumber is shipped by rail, is
from $20 at the mill in the South to $39 at the farthest destination
in the United States.^
The variation in retail prices between the cities included in the study
was also wide. The average of the typical prices in 31 cities was
$34.40 per thousand board feet. However, the prices varied, as
shown in the following summary.
' Little, if any, southern pine lumber is shipped into the Ponderosa pine or Douglas flr producing areas.
Therefore, it is not likely that the maximum rate is used to any extent. It is probable that in localities
where yellow pine is distributed, the maximum rail freight charged is $13 to $14 per thousand board feet.
CONCENTRATION OF ECONOMIC POWER
261
Prices
Number of
cities
Prices
Number of
cities
$20 to $24.99 -
3
2
7
$35 to $39.99
14
$25 to $29.99
$40 to $44.99
5
$30 to $34.99
Fourteen, or almost one-half of the cities, were in the $35 to $40
group. The average of the retail prices in these cities was $36.76
while the average of wholesale prices was $28.41. Based on these
figures, the average spread on southern pine boards was 29.4 percent
of the dealers' cost.
Price Trends. (See chart XIX and tables 160 to 165.)
Prices of yellow pine are much more variable than for other types
of lumber. They are changed more often and more widely and vary
greatly by locahties because of local conditions.
In the New England, Middle Atlantic, East North Central, and
Sou'th Atlantic areas the wholesale price indexes constructed by the
Bureau followed the same general pattern for the period from 1935 to
September 1939. Remaining unchanged through 1935 and 1936, the
index rose 7 percent in 1937, and then returned to its former level until
September 1939, when it rose 3 percent. In the East South* Central
region wholesale prices changed more frequently than in the four
regions previously mentioned. In 1935, despite minor fluctuations,
the index at the end of the year was 89.3, the same as at the beginning.
Increases in February 1936, in April, and again in December brought
the index to 97.9. This was followed by an increase of 22 percent
which brought the index to 119 in February 1937. This level held
for only 2 months. A series of price declines began in April, and by
July the level Vv^as the same as in January. This downswing continued
until June 1938 when a low of 76.4 was reached. In July a rise began
which reached 100 in December, which level was maintained until
September 1939 except for a minor drop during July and August.
Wholesale price data for the West South Central region are not
available at present for the period prior to 1939.
The trends of the composite retail price closely parallel the move-
ments in the wholesale series, except that in the last half of 1938 and
1939 retail prices advanced 8 percent while wholesale prices rose only
4 percent. There was only a slight upward movement from January
1935 to November 1936. A rapid rise occurred, however, in the
next few months; the Bureau's index, based on the third quarter of
1939=100, increased from 87 in November 1936 to 94 in January
1937. Only moderate changes were effected over the next 2}^ years.
The index number dechned slowly to 91 in April 1938 and then rose
moderately to 95 in June 1939. Sharp increases were reported
rather generally in the summer of 1939. The composite index ad-
vanced 5 percent from 95 in June to 100 in September, when this
survey was made.
The month-to-month fluctuations in retail prices differ somewhat
for the various regions, but, in general, reflect the movements of the
composite. In most of the areas prices changed slowly in 1935 and
1936, but advanced sharply in early 1937. There was a large dechne
in 1938 and recovery in 1939.
In the New England area retail prices followed wholesale prices
during most of the Deriod. but showed more changes and a wider
262
CONCENTRATION OF ECONOMIC POWER
spread from low to high. The Bureau's index, based on the third
quarter of 1939=100, reached its low point following a 6 percent
drop in April 1935, but a series of small increases from September
Chaet XIX
SOUTHERN PINE BOARDS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939*100
WDEX UNITED STATES - W(i«httd Avcroq* Pric*
REGION X - SOUTH ATLANTIC
t^
^■HOLCSALt
1
'J
n
v^
7
REOION X- NEW ENGLAND
A.,
ILtf
H
R-
=J-
if" '^Lus-^.^V
-WHOLES
/
\J
• BtMU.
V
r-*
^
r.EOION 31 • EAST SOUTH CENTRAL
REGION H - MIDDLE ATLANTIC
1
1
-VHOLCS
/
— 1
REGION
3IC- EAST NORTH CCMTRAL
—
•-4VH0LC9ALC
1 /
_^^^ Jh-HCtAn.
1
Uj^
LCS«LI
mJ
f
J
T
-l/
"^O
"•mut
W^
'
I93S 1936 1937 1938 1939 1940 1941
I9')S 1936 1997 1936 1939 1940 1941
UNlTtC ST«TtS BURE4U OF LABOR STATISTIC
1935 through April 1937 carried the index to a level 19 percent above
the low point. A 3 percent decrease in July 1937 was followed by
a period of stabihty until April 1938 when a decline started that
brought prices in May to a point 12 percent below the March level.
CONCPINTRATION OF ECONOMIC POWER 263
A slow rise from tliis point carried through September 1939, when the
index was 5 percent above May 1938.
In tlie Svyith Atlantic area, the wholesale price index changed only
three times from 1935 to date. In 1 month, January 1937, the index
rose 7 percent and showed no further change in the next 12 months.
However, in January 1938, it declined to the former level. A slight
increase occurred ixi October 1939. The retail price index increased
only 5 percent from November 1935 to November 1936 but prices
advanced 22 percent during the next 3 months and the index reached
a peak of 113 in February 1937. During the recession prices declined
steadil}^, losing 24 percent between April 1937 and June 1938 when
the index was 89. Subsequently prices had advanced by more than
12 percent to September 1939 when this survey was made.
The retail index for the East South Central States dropped in the
latter part of 1936, then rose 22 percent to a peak of 102.4 in February
1937. It declined about 6 percent from that time until July 1937 and
remained relatively unchanged until the end of 1938, when it reached
approximately the base level of 100. The great drop in the wholesale
index for this region (36 percent from March 1937 to June 1938) was
only reflected in a 6 percent drop in the retail level over the same
period, which seems to indicate a relatively large average spread
between wholesale and retail prices during this period.
Table 160. — Southern pine boards
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— JrJy-September 1939 = 100.0]
Year and month
1935
January
February
March
April.
May
June.
July
August
September
October^
November
December
1936
January
February
March
April
May
June..
July ,
Augast
September
October
November
December
1937
January
February
March
.\pril
May
Index
Whole-
sale
Retail
98.2
91.8
98.2
91.8
98.2
91.9
97.9
91.5
97.9
91.5
98.5
91.0
98.5
90.9
98.5
90.9
98.5
91.1
98.5
90.6
98.5
90.6
98.2
90.9
98.2
92.3
98.4
92.4
98.4
91.1
98.5
91.6
98.5
92.0
98.6
92.2
98.5
92.8
98.5
92.3
98.5
92.3
98.5
98.5
92.4
92.5
1 98.8
94.7
105.4
99.1
106.9
106.9
106.6
106.3
101.1
101.3
101.5
101.2
Year and month
1937 -Continued
June
July...
.^URUSt
September
October..
November
December
1938
January
February
March
April
May
June
July.
.\ugust
September
October
November
December —
1939
January... —
February
March
.\pril
May
June
July
Ausust -
September
Index
Whole-
sale
105.7
105.4
105.4
105.4
104.8
104.8
104.8
97.9
97.9
97.6
97.6
97.6
97.3
97.9
98.1
98.1
98.1
98.8
99.0
99.0
99.0
99.0
99.0
99.0
98.9
98.9
98.9
101.8
Retail
98.4
98.0
98.0
98.6
98.1
98.1
96.5
95.5
95.3
94.2
92.8
92.3
93.1
92.7
.92.7
92.6
92.9
93.2
9.3.7
94.9
94.9
95. 1
95. 0
95.1
95.1
99.7
99.8
100.4
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches, standard lengths, shortleaf; per M
board feet.
Wholesale: Carlots, mill to retail yards, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
264
CONCENTRATION OF ECONOMIC POWER
Table 161. — Southern pine boards
REGION I. NEW ENGLAND
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February _
March
April
May
June
July .---
August
September.--
October
November
December
1936
January--- -
February
March
April
May ---
June --
July-
August
September ---
October
November
December---
1937
January
February
March
April .--
May -
Index
Whole-
sale
98.9
98.9
98.9
105.7
105.7
105.7
105.7
105.7
Retail
101.4
101.4
101.4
95.7
95.7
95.7
95.7
95.7
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
102.0
102.0
102.0
102.0
102.0
102.0
104.5
104.5
110.9
110.9
113.4
113.4
Year and month
1937— Continued
June -'
July- ---_
August
September
October
November
December -
1938
January
February ---
March..
April.-
May
June.--
July
A ugust
September
October
No vember ,
December
1939
January
February -
March -.-
April
May. ---
June ---
July
August
September
Index
Whole-
sale
105.7
105.7
105.7
105.7
105.7
105.7
105.7
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
9S.9
98.9
102.2
Retail
109.6
109.6
109.6
109.6
109.6
109.6
109 6
109.6
109.6
109.6
107.0
96.0
97.4
97.4
98.3
98.3
98.3
98.3
99.4
99.4
99.4
99.4
99.4
99.4
99.4
100.0
100.6
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches, standard lengths, shortleaf; per M
board feet.
Wholesale: Carlots, mill to retail yards, f. o. b. ears destination.
Retail; Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
265
Table 162. — Southern pine boards
REGION II. MIDDLE ATLANTIC
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July.
August
September _
October
November
December
1936
January _
February
March
April
May.--
June
July --
August
September..
October
November
December
1937
January -
February
March
April
May
Index
Whole-
sale
98
105.8
105.8
105.8
105.8
105.8
Ret il
88.3
88.3
88.3
88.3
88.3
Year and month
1937— Continued
June -
July -..-
August ---
September
October
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December
1939
January
February ^---
March.
April
May
June
July..
August
September
Index
Whole-
sale
105.
105.
105.
105.
105.
105.
105.
98
102.3
Retail
88.3
88.3
88.3
88.3
88.3
88.3
88.3
88.3
88.3
88.3
88.3
91.3
91.3
91.3
91.3
9i.3
91.3
91.3
91.3
91.3
91.3
91.3
91.3
91.3
91.3
100.0
100.0
100.0
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches, standard lengths, shortleaf; per M
board feet.
Wholesale: Carlots, mill to retail yards, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
266
CONCPJNTKATION OF ECONOMIC POWER
Table 163. — Southern pine boards
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April _
May
June
July
August
September
October .
November
December
1936
January
February
March
April
May
June
July
August -_
September
October
November
December
1937
January
February.- _
March. _
April
May
Index
Whole-
sale
106.2
106.2
106.2
106.2
106.2
Retail
93.2
93.2
93.3
93.1
93.1
93.1
92.8
92.8
92.8
92.5
92.5
92.7
96.2
96.2
96.2
96.5
96.5
9C.5
98.2
98.2
98.2
97.9
97.9
98.4
98.0
98.0
98.0
97.7
97.7
Year and month
1937— Continued
June
July
August -
September
October
November.
December
1938
January
February
March
April
May
June
July
August
September
October
No vem ber. . _
December.
1939
January
February
March
April
May
June
July....
August
September
Index
Whole-
sale
106.2
106.2
106.2
106.2
106.2
106.2
106.2
Retail
97.7
97.3
97.3
97.3
97.1
97.1
97.1
96.8
96.6
96.6
96.6
96.0
96.0
96.0
95.7
95.7
95.9
99.6
99.2
99.2
99.2
99.5
99.9
100.7
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches, standard lengths, shortleaf; per M
board feet.
Wholesale: Carlots, mill to retail yards, f. o. b. cars destination.
Retail; Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
267
Table 164. — Southern pine boards
REGION V. SOUTH ATLANTIC
[Wholesale and retaU price indexes — July-September 1939=100.5]
Year and month
1935
January
February.
March
April. J...
May
June
July
August.
September
October
November
December
1936
January
February
March
April
May
June
July
August
September
October
November _
December
1937
January...
February
March
April
May
Index
Whole-
sale
Retail
99.1
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
87.8
99
88.4
99.1
89.7
99
90.0
99
90.0
99
90.0
99
91.6
99
91.6
99
91.6
99
91.3
99
91.3
99
92.0
99
92.0
99
96.9
106.3
108.0
106.3
113.0
106.3
112.4
106.3
112.4
106
3
111.8
Year and month
1937— Continued
June
July
August
September
October ...•_
November
December
1938
January
February
March
April
May
June
July
August
September
October
November
December ._
1939
January
February
March.
April ..
May
June
July
August
September
Index
106.3
106.3
106.3
106.3
106.3
106.3
106.3
Retail
102.8
102.8
102.8
102.8
102.8
102.8
97.1
94.8
94.6
93.9
90.5
90.5
88.9
94.1
94.1
94.1
94.6
96.3
96.3
98.
101
Specification: Pine, southern, boards. No. 2 common, 1 by 8 inches, standard lengths, short leaf; per M
board feet.
Wholesale: CarIots,mill to retail yards, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
2T5852— 41— No. 33-
-19
268
CONCENTRATION OF ECONOMIC POWER
Table 165. — Southern pine boards
EEQION IV. EAST SOUTH CENTRAL
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August-,
September
October
November
December
1936
January
February
March
AprU
May
June
July
August-.- -
September
October
November
December
1937
January -.
February
March
April
May
Index
Whole-
sale
89.3
91.4
91.4
93.6
93.6
93.6
93.6
9'3.6
93.6
93.6
93.6
97.9
97.9
119.3
119.3
115.0
110.7
Retail
90.7
90.7
90.7
90.7
90.7
84.2
84.2
84.2
84.2
90.7
99.6
102.4
102.4
102.4
99.5
Year and month
1937— Continued
June
July
August
September _--
October
November
December- -
1938
January
February
March
April
May
June
July
August
September-- -_
October
November
December
1939
January . _
February
March
April
May
June.
July.-
August
September
Index
Whole-
sale
102.2
97.9
97.9
97.9
89.3
89.3
89.3
85.0
85.0
80.7
80.7
80.7
76.4
85.0
87.1
87.1
87.1
97.9
100.0
100.0
100.0
100.0
100.0
100.0
98.3
98.3
98.3
102.2
Retail
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
94.0
96.9
96.9
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
100.8
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches, standard lengths, short leaf; per M
board feet.
Wholesale: Carlots, mill to retail yards, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER XV
PONDEROSA PINE
DESCRIPTION OF THE INDUSTRY
Ponderosa pine ranked third among all types of lumber in the
number of board feet cut in 1937 and third among the softwoods.
It represented approximately 15 percent of the softwood and 13
percent of all lumber. The average mill value of Ponderosa pine, as
published in the 1937 Census of Manufactures/ was higher than that
of Douglas fir or yellow pine, the two leading species of softwood.
The following summary gives the production of Ponderosa pine and
the mill value for the years iiidicated.
Production
Year
Production
Year
1.000 board
feet
Average
value
at mill
$26. 47
20.48
18.57
1.000 board
feet
Average
value
at mill
1929 .
3. 288, 237
1,822,460
1,689,773
1935
1937... _.
2, 527, 553
3, 307, 655
$20. 40
1931
1933
24.53
Ponderosa pine is produced in 13 States in the Rocky Mountain and
Pacific coast areas. According to the 1937 Census of Manufactures,
seven of these States account for 99 percent of the national total,
and three of them, Oregon, California, and Washington, represent
79 percent. Map VIII indicates the leading producing States, and
table 166 gives the Ponderosa pine output, by States, for 1937.
Table IQG.— Distribution of Ponderosa pine production, 1937
Production
State
Production
state
1.000 board
feet
Percent
of total
1,000 board
feet
Percent
of total
Oregon .
1,453.067
797. 816
352. 716
214,039
154,709
118,986
43.9
24.1
10.7
6.5
4.7
3.6
Arizona. -.
118,587
43, 550
32, 230
16,366
5,470
119
3.6
California
South Dakota
1.3
Washington .
Colorado
1.0
Idaho
(')
Montana
Utah
Kansas and Nebraska
(')
New Mexico
(')
' Less than 1 percent.
Source: Census of Manufactures, 1937: Production of lumber by kind and by States, table 10, p. 515.
A great numbc of mills are operated in the Ponderosa pine industry,
but few are large enough to exercise an appreciable effect upon the
market. Department of Commerce data show that only 16 percent
1 Census of Manufactures, 1937: Lumber and timber products not elsewhere classified, table 7, pp. 499, B.
269
270
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 271
of the product is supplied by the four largest firms. The concentra-
tion here is slightly greater, however, than in the yellow pine industry
and slightly less than that of Douglas fir. There are fewer small
mills, operatmg intrastate, m the Ponderosa pine and fir products
industries than in yellow pine.
It is estimated that each mill produces 40 or more types of Ponderosa
pine products. The uses for this specie vary and are approximately
the same as for the other two leading softwoods. One of the chief
uses is for millwork, which is discussed in another section of the
report. Certain types of finished lumber milled from Ponderosa
pine are very costly, but the type selected for pricing in this survey
\vas in the lower price group.^ Specifications of the item priced were:
Ponderosa pine boards, No. 3 common, 1 by 8 inches, random lengths,
S2 or 4S. WTiolesale prices were quoted per thousand board feet,
carlots in mixed cars, mill to retail dealer, f. o. b. cars at destination.
Retail prices quoted were per thousand board feet, dealer to contractor,
delivered to job site, city.
PRICE STRUCTURE
Ponderosa pine is sold at wholesale, f. o. b. mill, plus full freight to
(lesthiation point. The mills quote prices in carlots, f. o. b. mill, with
prices in mixed carlots usually slightly higher than for straight carlots.
That is, the price for boards might be $21.50 per thousand if shipped
in a car containing boards, dimension, and timbers, but woidd be
$20 per thousand for a carlot of boards only. There is no formal or
systematic plan of equalizing freight costs to the purchaser, but mills
meet the competition of more favorably located sellers by lowering the
f. 0. b. mill price, so that the total cost to the buyer will be the same.
Not delivered prices are not equalized against all competitors, as mills
usually do not attempt to enter a market in wliich freight costs are
prolubitive. If the net price on sales to certain points is too small the
])rt)(lueer leaves that market to mills more favorably situated. Thus,
many west coast mills do not sell in the territory east of the Rockies
and west of the Mississippi, because they cannot absorb the freight
costs necessary for competition with mills in MoTitana and South
Dakota. However, freight to the area east of Chicago is the same
from any point in the northwest producuig area, and mills can, there-
fore, compete on an equal basis.
Whereas most of the sales of Douglas fir to the east coast are
shipped by water, almost all shipments of Ponderosa j)ine to the eastern
sales area are by rail.
Channels of Distribution.
Sales are made to retail dealers in four ways:
(1) Direct from mill.
(2) Through brokers.
(3) By commission salesmen.
(4) Through wholesalers.
Sales direct from mill may be made by telephone or telegraph, or the
order may be taken by salaried company re]>reseutatives. A broker
usually takes an order from a retailer aiid then orders shipment direct
' The trend of prices for this product is representative of the movement of prices for the indu-stty as a
whole.
272
CONCENTRATION OF ECONOMIC POWER
from mill to retailer, the broker paying the producer and in turn col-
lecting from the consignee. For tliis function, the broker receives a
discount of 8 percent. The commission salesman merely transmits
the order from the dealer to the producer, and usually receives 5 per-
cent commission. The wholesaler buys lumber in carlots from the
the mill, stores it, and sells to small retailers in less than carlot quan-
tities. Only a small amount of lumber is sold through the wholesaler.
The usual cash discoimt is 2 percent, 10 days or 10th proximo.
PRICE LEVELS AND TRENDS
Destination prices, as quoted by the producers at wholesale, were
not available for all cities. When actual destination prices were not
quoted by the producer, the approximate price was computed by
adding rail freight costs to the f. o. b. mill prices. This method is
reasonably accurate in computing levels, even on the east coast,
because only a small percentage of the volume sold in this area is
shipped by water.
Geographical Differences.
The distance from source to destination is, of course, the dominant
factor in the price structure for Ponderosa pine. Freight costs on
shipments by rail to the east coast run, at the most, about $15 per
thousand board feet. When the wholesale price is $20 to $25 per
thousand in the producing area, the destination price over most of the
Eastern States is $35 to $40.=^
These differentials in transportation costs are reflected also in retail
prices which varied from $33.25 in a city in the Pacific region to
$70 in New England. However, 20 out of 33 cities had prices ranging
between $35 and $49. The price range in various regions is shown in
the following summary:
Region
Range of retail
prices
Region
Range of retail
prices
I. New Encland._
$47.00 to $70.00
$45.00 to $60.00
$40.00 to $50.40
IV. West North CentraL...
VIII. Rocky Mountain
IX. Pacific
$39.60 to $46.00.
11. Middle Atlantic
$33.25 to $50.00.
HI. East North Central
$36.50.
The lowest levels are found in the Rocky Mountain and Pacific areas
and the highest in the regions farthest from the producing areas.
Price Trends. (See chart XX and tables 167 to 172.)
The same general wholesale price pattern characterized all parts
of the country. The national trend was downward from January
1935 through 1936, a decrease of about 7 percent. A rise at the be-
ginning of 1937 then carried average prices up 14 percent. A decline
started at the end of 1937 that produced an aggregate drop of 14
percent by November 1938. There was a sharp rise of 8 percent in
December 1938 and a further advance of 5 percent froiri July to
September 1939.
In retail markets the available data indicate that the regional
trends are also similar and that they conform fairly closely to the
' Blanket freight rate applies over most of the northern section of the United States east of the Mississippi
River.
CONCENTRATION OF ECONOMIC POWER
273
Chart XX
PONDEROSA PINE BOARDS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
UNITED STATES - Weighted Averog« Pric« REGION IZ - WEST NORTH CENTRAL
n
■WM01.ES41.
J
4
1 1
— f
SlCMlL
n
J
?^
A
^
^
rttT«i/
REGION I - NEW ENGLAND
fi
Y"
J
-^^
tf
tSAlt'
REGION znr - ROCKY MOUNTAIN
i
I
1
1 1 IV "ETAIL
I KLi-
1
^
-t1 \ T-'
— -
' wKOi.esiie'''^ 1
i
1
REGION m - EAST NORTH CENTRAL
REGION IZ - PACIFIC
I93S 1936 1937 1936 1939 1940 1941
UNITED STATES BUREAU Or LABOR STATISTICS
I93S 1936 1937 1936 1939 1940 1941
274
CONCENTRATION OF ECONOMIC POWER
general movement of wholesale. The trend was generally moder-
ately upward from 1935 to the summer of 1936, but in the fall of 1936
and the first few months of 1937 prices advanced quite rapidly,
aggregating 15 percent. In July 1937 a decline began which continued
to the end of 1938 and totaled 8 percent.
Table 167. — Ponderosa pine boards
COMPOSITE UNITED STATES AVERAGE
(Wholesale and retail price indexes— July-September 1939=100.0]
Vear and month
1935
January
February.
March
April
May
June...
July.
August
September
October
November
December
1936
January
February
March
April
May
June _._
July
August. _
September
October
November
December..
1937
January
February
March :
April
May
Index
Whole-
sale
100.2
100.2
100.2
100.2
100.2
97.2
97.2
97.2
97.1
97.1
97.1
97.1
97.1
97.1
97.1
97.1
97.1
97.1
97.2
94.2
94.2
92.7
92.7
94.2
95.7
103.2
106.2
106.2
106.2
Retail
91.3
91.3
91.7
91.7
91.8
91.9
91.9
91.6
91.6
91.6
91.8
91.8
92.1
92.1
92.1
92.3
92.6
92.6
92.6
92.6
96.1
96.1
95.8
96.2
102.6
103.6
104.3
105.7
105.7
Year and month
1937— Continued
June .- __.
July
August. ._
September
October
November
December
1938
January
February.
March
April
May
June -
July
August
September
October
November
December
1939
January
February
March
April
May
June
July--.
August
September
Index
Whole-
sale
Retail
106.2
106.2
106.2
106.2
106.2
100.2
97.2
94.1
94.1
95.8
95.8
95.8
93.0
93.0
93.0
90.0
90.0
90.0
97.5
97.5
97.5
97.5
97.5
97.5
97.5
97.5
99.0
103.5
105.8
105.8
105.8
101.6
101.6
101.6
101.0
101.3
100.9
100.6
100.6
100.4
99.3
99.0
99.0
99.0
98.4
98.6
100.1
101.1
Specification: Pine, Ponderosa, boards, No. 3 common, 1 by 8 incheSj random lengths, S2 or 4S; per
M board feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
275
Table 168. — Ponderosa -pine boards
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=J0O.O]
Year and month
1935
January.
February
March
April
May
June.
July ---
August
September
October
November..,
December
1936
January
February..
March.
April
May
June
July
August.
September
October.
November
December...
1937
January
February
March
April
May
Index
Whole-
sale
RetaU
99.8
96.2
99.8
96.2
99.8
96.2
99.8
96.2
99.8
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.0
96.9
94.9
96.9
94.9
96.9
94.9
94.1
94.9
94.1
94.9
92.7
94.9
92.7
94.9
94.1
94.9
95.5
94.9
102.6
94.9
105.4
94.9
105.4
108.1
105.4
108.1
Year and month
1937— Continued
June
July....
August
September
October......
November
December
1938
January.
February
March
April-
May
June..
July
August
September
October
November
December
1939
January
February
March
April
May...
June
July
August
September
Index
Whole-
sale
Retail
105.4
105.4
105.4
105.4
105.4
99.8
97.0
94.1
94.1
94.1
94.1
94.1
93.4
93.4
93.4
90.6
90.6
90.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
99.1
103.3
108.1
108.1
108.1
108.1
108.1
108.1
108.1
108.1
106.0
106.0
106.0
106.0
99.4
99.4
99.4
99.4
99.8
99.8
100.0
93.4
93.4
93.4
93.4
93.4
100.0
100.0
100.0
100.0
Specification: Pine, Ponderosa, boards. No 3 common, 1 by 8 inches, random lengths, S2 or 4S; per M
board feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
276
CONCENTRATION OF ECONOMIC POWER
Table 169.- — Ponderosa pine boards
[Wholesale and retail price indexes— July-September 1939=100.0]
REGION III. EAST NORTH CENTRAL
Year and month
January
February.-.
March
April
May
June.-
July
August
September.
October
November.
December.
January
February...
March
April
May
June
July
August
September.
October
November.
December.
January..
February -
March
April
May
1936
Index
Whole-
sale
99.8
99.8
96.9
96.9
96.9
96.9
96.9
96.9
96.9
95.5
102.6
105.5
105.5
105.5
Retail
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
91.0
97.5
107.6
107.6
107.6
107.6
107.6
Year and month
1937— Continued
June
July
August
September
O ctober
November
December
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June
July...
August
September.
1938
1939
Index
Whole-
sale
105.5
105.5
105.5
105.5
105.5
99.8
94.0
94.0
96.2
96
2
96.2
93.3
93.3
93.3
90.5
90.5
90.5
97.6
97.6
97.6
97.6
97.6
97.6
97.6
97.6
99.0
103.3
Retail
107.6
107.6
107.6
100.6
100.6
100.6
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
99.3
99.3
99.3
99.3
99.3
98.3
98.3
100.3
101.4
Specifieation: Pine, ponderosa, boards, No. 3 common, 1 by 8 inches, random lengths, S2 or 4S; per M
board feet.
Wholesale: Carlots , mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 170. — Ponderosa pine boards
[Wholesale and retail price indexes— July-September 1939=100.0]
REGION IV. WEST NORTH CENTRAL
277
Year and month
1935
January
February _..
March
April
May
June ;...
July
August
September
October
November.
December
1936
January
February..
March
April
May
June
July
August
September
October
November..
December
1937
January
February
March
AprU
May
Index
Whole-
sale
95.2
102.9
106.0
106.0
106.0
Retail
90.3
90.3
90.3
90.3
90.3
90.9
91.1
89.5
89.5
89.5
89.5
89.5
91.5
91.5
91.5
91.6
93.3
93.3
93.3
92.9
91.7
91.7
89.9
89.9
90.0
93.4
94.7
95.6
95.6
Year and month
1937— Continued
June
July
August
September
October
November..
December
1938
January
February
March .,
April
May
June
July
August
September.
October
November
December
1939
January...
February.
March
April
May
June
July. -
August-
September
Index
Whole-
sale
106.0
106.0
106.0
106.0
106.0
93.7
93.7
93.7
93.7
93.7
92.8
92.8
92.8
89.7
89.7
89.7
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
99.0
103.6
RetaU
95.6
95.6
95.6
97.0
97.0
97.0
97.0
99.2
99.2
97.3
97.3
97.3
94.1
93.5
93.5
93.5
93.5
93.5
93.5
97.9
98.8
98.8
99.1
99.1
99.1
99.7
101.2
Specification: Pine, ponderosa, boards. No. 3 common, 1 by 8 inches, random lengths, S2 or 4S; per M
board feet.
Wholesale: Carlots, mill to retail yard, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city
278
CONCENTRATION OF ECONOMIC POWER
Table 171. — Ponderosa pine hoards
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May -
June
July
August
September
October
November
December
1936
January
February
March
April
May
June
July
August --
September.--
October
November
December
1937
January
February...
March
April
May
Index
Whole-
sale
Retail
100.8
90.3
100.8
90.3
100.8
93.6
100.8
94.0
100.8
95.9
97.3
95.9
97.3
95.9
97.3
95.9
97.3
95.9
97.3
95.9
97.3
97.1
97.3
97.1
97.3
97.2
97.3
97.2
97.3
97.0
97.3
98.6
97.3
98.6
97.3
98.6
97.3
98.6
93.7
98.6
93.7
98.6
92.0
98.6
92.0
98.6
93.7
99.2
95. .5
99.2
104.4
102.3
107.9
106.8
107.9
108.0
107.9
108.0
Year and month
1937— Continued
June
July....
August
September
October
November
December
1938
January
February
March--
.\pril
May
June
July
August
September
October . -
November
December
1939
January
February
M arch
April
May
June...
July.
August
September
Index
Whole-
sale
107.9
107.9
107.9
107.9
107.9
100.8
97.3
94.0
94.6
95.8
94.4
94.4
91.7
91.7
91.7
88.2
88.2
88.2
97.1
97.1
97.1
97.1
97.1
97.1
97.1
97.1
98.8
104.2
Retail
108.6
108.6
108.6
108.6
108.6
108.6
105.7
105.7
103.7
103.7
103.7
101.7
101.7
100.6
100.6
100.6
99.0
99.
99.0
100.0
100.0
100.0
99.0
99.0
100.0
100.0
100.0
Specification: Pine, ponderosa, boards. No. 3 common, 1 by 8 inches, random lengths, S2 or 4S; per M
board feet.
Wholesale: Carlots, mill to retail yard, f. o. b., cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
279
Table 172. — Ponderosa pine boards
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June --
July....
August-.
September
October
November
December.
1936
January
February
March..
April -
May
June
July
Augu.st
September
October
November
December
1937
January
February.-
March
April
May
Index
Whole-
sale
101.9
101.9
101.9
101.9
101.9
97.9
97.9
97.9
97.9
97.9
97.9
97.9
95.9
105.3
109.7
109.7
109.7
Retail
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
102.2
96.9
96.9
96.9
Year and month
1937— Continued
June
July....
August...
September _ _
October .._
November
December.
1938
January
February
March :
April
May
June..
July
August .-
September
October
November
December.
1939
January
February ,...
March
Apra
May
June
July
August...
September.-
Index
Whole-
sale
09.7
09.7
09.7
09.7
09.7
01.9
96 7
96.7
96.7
96.7
96.7
96.7
96.7
98.7
104.6
Retail
96,
96.9
96 9
96.9
96.9
%.9
96.9
96.9
96.9
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
98.2
98.2
Specification: Pine, ponderosa, boards. No. 3 common, 1 by 8 inches, random lengths, S2 or 4S; per M
board feet.
Wholesale: Carlots, mill to retail yard, f. o. b., cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTER XVI
WHITE PINE
White pine production in the United States in 1937 ranked fourth
among the softwoods and sLxth for all types of lumber. The average
mill value of white pine per unit was higher than for any of the other
three softwoods which are more widely used — yellow pine, Douglas
fir, and Ponderosa pine. The following summary shows the produc-
tion and value of white pine for the years indicated: ^
Production
Year
Production
Year
1,000
board
feet
Average
value at
mm
1,000
board
feet
Average
value at
mm
1927
1, 344, 466
1, 247, 878
715,504
$29.90
29.87
24.71
1933
532, 088
854, 266
1,012,136
$21.45
1929
1935 . . ...
25.66
1931
1937
29.20
The production of white pine lumber is scattered over 26 States,
located in the Northwest, North Central or Great Lakes States,
Appalachian region, and New England. However, 82 percent of the
total is produced in five States — New Hampshire and Maine in the
Northeast, Minnesota in the North Central, and Washington and
Idaho in the Northwest. Map IX shows the location of the lead-
ing producing States, and table 173 gives the production by States for
1937.
Table 173.—- Distribution of production of while pine in 1937
Production
State
Production
State
1,000
board
feet
Percent
of
total
1,000
board
feet
Percent
of
total
Idaho
459, 661
113,059
102, 608
79,119
78, 091
39, 818
28, 417
45.4
11.2
10.1
7.8
7.7
3.9
2.8
Michigan.
Montana
Vermont
21,491
20, 186
14,898
14, 030
10,850
29, 908
2. 1
Maine...
2.0
New Hampshire
Minnesota
1.5
1.4
Washineton.
Pennsylvania
1. 1
Massachusetts
Other States (14) I
3.0
Wisconsin
' States producing less than 1 percent are Connecticut, Georgia, Iowa, Kentucky, Maryland, New Jersey,
North Carolina, Ohio, Oregon, Rhode Island, Tennessee, Utah, Virginia, and West Virginia.
Source: Census of Manufactures, 1937: "Production of lumber by l^ind and by States," table 10, p. 515.
There are several species of white pine; the Census of Manufactures
includes four species under this classification. The three most
important are eastern white pine, which is cut in the Lake States,
New England, and the Appalachian region; jack pine, which comes
from the Lake States; and western or Idaho white pine, which is cut
' Census of Manufactures, 1937: "Lumber and timber products not elsewhere classified," table 7, pp. 499 ff
281
282
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 283
ill the Northwest region. For the purposes of this survey, however,
no distinction need be made between these species.
The item priced was boards, No. 3 common, 1 by 8 inches, standard
lengths. Like the other softwoods in this survey, white pine is sold
on an f. o. b. mill basis, subject to unsystematic freight equalization.
Mill prices are varied so that the sum of mill prices plus freight will
give destination prices that enable the producers to meet competition
in each market.
Sales are made through brokers, commission men, and traveling
salesmen, as well as directly from the mills. As in other lumber
industries, brokers get 8 percent discount, commission men 4 percent,
and the usual discount for cash is 2 percent.
White pine cannot compete with the lower priced yellow pine or
Douglas fir in many sections of the country. Due to the scattered
market for the commodity, price data obtained were insuflBcient for
computing average regional prices. The average of prices obtained
for a few scattered destinations in four Northern and Eastern regions
was $49 per thousand board feet, at retail. However, this cannot be
considered a national average price.
The trend of prices follows the general trend for other lumber,
that is, rising prices from the first of 1935 to 1938, with a recession
beginning in the latter part of 1938 and leveling off in the summer of
1939.
^75852 — 41 — No. 33 20
CHAPTER XVII
DOORS
DESCRIPTION OF THE INDUSTRY
The viiliie of doors produced in the United States is greater than
that of any other single type of mill work. In 1937, the production
of doors was \alued at $39,000,000, sash at $20,000,000, and window
and door frames at $16,000,000, according" to data published by the
Census of Manufactures.^ The following summary shows the value
of doors produced in the years selected.
Year
Value of
production
Year
Value of
production
1927..
1929.
$57, 971, 624
59, 315, 987
25. 370, 490
1933 _
1935
$12, 266, 788
20, 579, 892
1931
1937
38, 968, 960
Doors are manufactured in 39 States, but 6 States account for 68
percent of the total. The leading States are not grouped in one area,
but are in two widely separated regions. The 3 Pacific Coast
States — Washington, Oregon, and California — produce 36 percent of
the total, and three North Central States — Wisconsin, Iowa, and
Illinois — 32 percent. Map X shows the geographical distribu-
tion of the leading States, and table 174 gives production by States
m 1937.
Table 174. — Production of doors in 1937, by States
state
Washiugton..
Iowa.-
Wisconsin
California
Illinois
Oregon
Penrtsylvania
New i'ork
Production
Value Percent
$9, 013, 841
5, 053, 525
5, 010, 231
2,911.690
2, 419, 771
1, 968, 033
1,144,684
1, 113 023
State
Ohio
Missouri
Texas
New Jersey
Minnesota
Virginia
Massachusetts
other States (22)'.
Production
Value Percent
$844,339
612, 827
597, 389
530, 972
629, 071
478,528
418. 082
' States producing less than 1 percent are Alabama, Arizona, Arlunsas, Colorado, Connecticut, Florida,
•Georgia, Idaho, Kentucl^y, Louisiana, Maine, Michigan, Montana, Nebraska, New Hampshire, North
Carolina, South Carolina, South Dakota, Tennessee, Utah, Vermont, and West Virginia.
Source: Census of Manufacture?, 1937
quantity, and value, by ."-tates, p. 534.
"Planing-mill products." table 6, Planing-mill products, by kind,
Many small firms, as well as a number of large firms, are engaged
in the manufacture of doors. No definite data are available at this
time en concentration within the industry.
' Census of Manufactures. Wil: "Planing mill products," table 7, Door production, by kind, number, and
value, for the United States, p 536.
285
286
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER
287
Doors are made from many kinds of wood, but pine and Douglas
fir are the leading species used. In 1937 the Census of Manufactures
gives the following iniormation on production of doors:
Type and u<!e
Production
Number
Value
General construction :
Pine
$3, 846, 077
6, 468, 639
433,040
772, 031
$12, 806, 467
Douglas flr
11,269,563
Hardwood .
3, 397, 626
Other
3, 034, 432
Total
11, 519, 787
316, 521
30, 498, 088
Oarages
3, 940, 737
other
4, 530, 135
Aggregate value
W
38,968,060
' Not available.
Source: Census of Manufactures, 1937: "Planing-mill products,
number, and value, p. 521.
table 7, Doors— Production by kind.
Thus we have definite information on the use of only one type of
wood — Douglas fir which leads in number and is a close second in
value. The figure for pine may include many different types such
as Ponderosa, jack pine, yellow pine, white pine, etc. However,
Ponderosa is the leading type of pine used in millwork, and it is
a safe assumption that the greater part of the pine used in doors is
also that type. While the production of pine doors is far below
Douglas fir doors in number, their value exceeds that of fir, partly
because of specialty work in pine. However, prices of Ponderosa
pine doors are usually liigher than those for Douglas fir doors of
similar design.
PRICE STRUCTURE 2
One type of door was priced as representative of price movements
in the industry. On the advice of the firms contacted, the item
selected as indicative of the trend of prices on all doors was No. 1,
interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by 6 feet
8 inches by 1% inches. Prices were obtained on doors of this descrip-
tion manufactured from both Douglas fir and Ponderosa pine. These
two series are believed to portray accurately the trend of prices for the
door industry.
List Prices.
Wholesale prices on doors are quoted on a discount basis from a
standard price list used by each manufacturer. In September 1939
the basic list price on the fir door meeting the above specifications was
$7.85. The hst price changes rarely and is purely nominal, while
discounts are subject to more frequent changes. One manufacturer
reports 17 changes in discounts from 1935 to 1939, inclusive. Dis-
counts range from 75 to 85 percent off list.
Zone Differentials.
The manufacturers divide tlie country into zones for pricing
purposes. Most manufaf^turers use a 17 zone plan, although one firm
' The price structure df;<:crihed below is representative of the eeiieral practice in that part of the industry
which distributes stock millwork through jobbers and dealers (usually the larpe producers). Part of the
production shown on table 174 is in plants whose general practice is not covered by this description. No
mformation was obtained on specialty millwork.
288
CONCENTRATION OF ECONOMIC POWER
reports 21 zones. Prices are quoted in mixed carlo ts, freight allowed
in each zone. Doors are delivered in the mill zone, freight allowed,
at the f. o. b. mill price. In the other zones, the delivered price is
higher, the amount added ranging from about 10 to 70 cents per door,
depending partly upon the distance from the plant. The zone
differentials are not always the same, and do not all change at the
same time. Table 175 shows the zone differentials of one large
manufactm^er on September 1, 1939, by cities, for fir doors.
Table 175. — Zo7ie differentials in wholesale prices of doors, September 1939
Region and city
Amount
added to
mill zone
price
(cents)
Region and city
Amount
added to
mill zone
price
(cents)
Region I (New England):
A. Portland, Maine
0.43
.43
.43
.43
.43
.43
.43
.43
.43
.39
.39
.35
.27
.27
.24
.20
.24
.27
.24
.24
.27
.43
.43
.43
.39
Region V (South Atlantic)— Con.
E. Richmond, Va
0.43
B. Manchester, N. H
F. Charlotte, N. C
51
C. Burlington, Vt. . . -
G. Charleston, S. C
55
D. Boston, Mass
H. Atlanta, Oa
.47
E. Providence, R. I--
I. Miami, Fla
.63
F. Hartford, Conn
Region H (Middle Atlantic):
A. NewYork, N. Y
B. Trenton, N.J
C. PhUadelphia, Pa -
Region VI (East South Central):
A. Louisville, Ky
B. Memphis, Tenn
C. Birmingham, Ala
D. Jackson, Miss
.39
.24
.43
.24
Region III (East North Central):
A. Cleveland, Ohio
Region VIT (West South Central):
A. Little Rock, Ark,
B. Detroit, Mich
G. Indianapolis, Ind
D. Chicago, 111
E. Milwaukee, Wis,.
Region IV (West North Central):
A. Minneapolis, Minn
B. Fargo, N. Dak
G. Sioux Falls, S. Dak -..
D. Des Moines, Iowa _
B. Oklahoma City, Okla
C. Austin, Tex
D. Houston, Tex _..
E. New Orleans, La
Region VIII (Rocky Mountain):
A. Butte, Mont ,
B. Boise, Idaho.-
C. Cheyenne, Wyo
D. Denver, Colo .
.24
.27
.27
.27
.16
.16
.20
.20
E. Omaha, Nebr
F. Wichita, Kans
Q. St. Louis, Mo
E. Salt Lake City, Utah
F. Reno, Nev
Q. Phoenix, Ariz. ,
.16
.16
.27
Region V (South Atlantic):
H. Albuquerque, N. Mex
.24
A. Wilmington, Del -.-
B. Baltimore, Md
G. Washington. D. C
D. Charleston, W. Va...
Region IX (Pacific):
A. Seattle, Wash
B. Portland, Oreg.-
C. Los Angeles, Calif
(')
0)
.20
t MiU zone.
Doors are sold in mixed carlots from manufacturer to jobber who,
in turn, sells in less-than-carlot quantities to the retail dealer. When
a retailer has sufficient volume of sales, he may buy direct from the
manufacturer.
Doors are invoiced to the buyer, f. o. b. shipping point, full freight
allowed to destination. The invoice price is varied by destination, to
allow the manufacturer approximately uniform realization prices. The
buyer deducts the freight paid from the face of the invoice and remits
the balance less the cash discount, if paying within the specified time
limit.
Douglas fir doors are frequently sold in advance of production, as
the members of the industry like a backlog of orders. When an
advance in price occurs between the receipt of an order and the time
of shipment, the doors are delivered at the price in effect at trie time
the order was given. If a drop in price occurs between the receipt of
an order and the time of shipment, the purchaser is charged the new
or low price. Thus the buyer is given protection against a price rise
CONCENTRATION OF ECONOMIC POWER
289
and guaranteed the })enefits of any price decline before receipt of
shipment.
However, manufactvirers try to discourage, insofar as possible, the
excessive buying of large quantities of doors for future delivery to
jobbers who might wish to place large orders in anticipation of future
price increases. By the use of statistics on building permits ^ in their
locality, jobbers are able to anticipate contractor demand for 3 or 4
months in advance, as most of the demand for doors is for new building
construction.
PRICE LEVELS AND TRENDS
Geographical Differences in Levels and Spreads.
As may be expected from the wholesale method of sales and dis-
tribution, the delivered price of doors increases with the distance from
the source of supply. At wholesale, the delivered price for Douglas
fir doors on September 15, 1939, was highest in the South Atlantic
region and lowest in the Pacific area. In the South Atlantic States-
(where few fir doors are sold) typical prices varied from $1.96 to
$2.20, and on the west coast the range was from $1.57 to $1.77.
At retail, the lowest typical prices were in the Pacific area, where
the range was $2.50 to $3.04, and the highest average was in the West
South Central region, where the range of typical prices was $3.25 to
$4.85.* The geographical differences in both series are shown in the
following table:
Number of cities
Price range
Number of cities
Price range
V.'hole-
sale
Retail
Whole-
sale
Retail
$1.50 to $1.74
6
18
17
$3.25 to $3.49 . -- --. --
10
$1.75 to $1.99 . .
$3.50 to $3.74 ..-
3
$2.00 to $2.24 .
$3.75 to $3.99
8
$2.25 to $2. 49 -.
$4.00 to $4.24
2
$2.50 to $2.74
2
5
8
$4.25 to $4.49 ... -
1
$2.75 to $2.99
$4.50 to $4.74.-
$3.00 to $3.24
$4.75 to $4.99.-
2
The average of typical prices for the 41 cities from which data were
obtained on doors, was $3.43 for retail and $1.90 for wholesale, or a
difference between the two markets of 81 percent. The smallest
differences were in the New England and Middle Atlantic regions.
The largest differences between wholesale and retail prices were in
the West South Central and West North Central areas. ^
' Bureau of I-abor Statistics, Building Construction in Principal Cities of the United States.
* The price data obtained on Ponderosa pine doors were insufficient for the computation of reliable
regional averages. The available data indicate that prices of Ponderosa doors are higher than those for fir
doors, by amounts varying from 50 cents to $1 per door at both wholesale and retail. The spread between
wholesale and retail was approximately the same as that for fir.
' The difference between the wholesale and retail prices shown in the above table is not necessarily
the dealers' actual gross margin. In the wholesale distribution of doors there are two important
channels: From manufacturer to jobber, and from jobber to dealer who m turn sells to the contractor. On
most building materials the wholesale price is from manufacuirer to denier and the retail price is from
dealer to contractor. The wholesale door prices here reported arc from manufacturer to jobber and no
data are available as to the prices charged the dealer. Therefore, the margin shown is the percentage differ-
ence between the jobbers' price and the contractors' price, whereas for the other commodities it is the
percentage dilTercnce between the dealers" price and the contractors' price. In most cases, therefore, the
difference shown for doors represents the cost of handling, warehousing, delivery, and profits for both
jobber and retailer.
290
CONCENTRATION OF ECONOMIC POWER
The following summary shows the regional averages of typical city
prices, wholesale and retail, for Douglas fir doors on September 15,
1939:
Region
Prices
Whole-
sale
Retail
Diflerence
Amount Percent
New England
Middle Atlantic
East North Central.
West North Central.
South Atlantic
East South Central.
West South Central.
Rocky Mountain
Pacific
Average.
$2.00
2.00
1.90
1.81
2.04
1.91
1.83
1.76
1.64
$3.18
2.92
3.51
3.77
3.46
3.45
4.28
3.53
2.70
1.90
3.43
$1.18
.92
1.61
1.96
1.42
1.54
2.45
1.77
1.12
1.53
59
46
85
108
70
81
134
101
68
Price Trends. (See chart XXI and tables 176 to 185.)
There have been rather wide fluctuations in wholesale piices of
Douglas fir doors, on a Nation-wide basis, particularly during 1937
and 1938. During 1935, prices were fairly stable, advancing by about
6 percent in November of that year and decUning again by about 4
percent in June of 1936. In the early part of 1937 prices began to
advance very rapidly and for the months of August to November
they were 18 percent above the level of late 1936. After industrial
activity declined in late 1937 virtually all of this advance was lost.
By April 1938 prices had again risen about 10 percent to a level that
was maintained until October, when a renewed drop of about 15
percent brought them to a level shghtly under that of 1935. Except
for a slight rise of 4 percent in March 1939 and an equal decline in
July of that year, prices remained fairly steady at that level.
Regional wholesale prices showed the same general trends as that
for the country as a whole. Retail prices, however, did not follow
wholesale price trends closely in several parts of the country. In
general, they advanced in the North and East from the 1935 levels to
highs in 1937, and by 1939 were still generally higher than in 1935.
In the South, also in the West; retail prices were lower in 1939 than in
1935, having experienced a succession of advances and still greater
declines at various times.
Thus, the national average price, which is relatively stable, as
reflected in a range of about 6 percent in the Bureau's retail price
index based on the third quarter of 1939=100, in reality conceals
widely divergent regional price changes.
Retail prices for New England, which were at a comparatively low
level in the first 7 months of 1935, rose about 12 percent in August
of that year to a level that was maintained with only small changes
until the early months of 1937 when there was a further 13 percent
rise. Between March and June of 1938, a drop of 15 percent occurred,
followed by a small rise to a level about 12 percent below the peak of
1937, with little change thereafter through September 1939.
In the Middle Atlantic area prices were unchanged from January
1935 through 1937. A 5 percent rise occurred in January 1938, fol-
lowed by a further 14 percent rise in June 1939 to a levt-l well above
that which had prevailed in 1935-37.
CONCENTRATION OF ECONOMIC POWER
291
Chart XXI
DOUGLAS FIR INTERIOR DOORS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939=100
UNITED STATES - Wiightttf A»tra««Pric* REGION Z- SOUTH ATLANTIC
1
WHOL«$«L
'>-n
i
r
/
h
_r^^ ■
^ 1
f\
m
TUL^
^
rJ~<
'WMOLCSAtC
~r
1^^
/HHl_
^C' Ef-=t=^
\ -c^
REGION X-NEW ENGLAND
WMOtf$»LC-»r"
fi-
¥<
— '^^J '
r\
pL-^.,„„, ^^
1
REGION H - MIDDLE ATLANTIC
1
-T]
h
1
^ f !j 1
r\
I
J
1 MT«iL—
REGION nr - EAST NORTH CENTRAL
1
'r^
^WHOt
CMLC
r
LTf f-1
1
^ — I 1
^
O
J'^Ml.,,.
*r*—
REGION
31 - EAST SOUTH CENTRAL
mOLCSAL
'r^
1
n
^
A
h
1
V—
' Ij
r\
L /'—=-'"=-=*_
-
„;,^
\
;■'
1
REGION
m- WEST SOUTH
CENTRAL
/-q
^WHOIIMLC
"*"-\
r
n,
— JL
JV—
F^ \
^ ttn
REGION xm
- ROCKY MOUNTAIN
1
.WHOLCSALC
7t^
.MT«1L
H
n
^ J
\^i^
A \
f:v
"^
REGION IX - WEST NORTH CENTRAL
- -
WNOLCULC ~.
1
bl»
K 1 m
J r^x HUiir..
"■■•ITAit ;
1
1
REGION
IX- PACIFIC
«»'K
^J 1 .•-WHOL
CMLC
f
n
1
^^^
f \ 1
n
MO
130
120
110
100
I93S 1936 1937 193a 1939 1940
TED STATES BUREAU Of LABOR STATISTICS
1999 1996 I93T 1996 1999 1940 1941
292 CONCENTRATION OF ECONOMIC POWER
In the East North Central area prices were relatively higher than
in either of the other eastern areas until May 1936. They then rose
11 percent and remained stable at that level until the end of 1938,
when there was a small decrease to the level which was maintained
through September 1939.
In the West North Central area also, retail prices varied withm a
narrower range than in New England and the Middle Atlantic States.
There were a series of advances and declines of about 4 to 8 percent.
Increases occurred in July 1935, January 1937, September 1938, and
September 1939. Price decreases were effective in August 1936, July
1937, and January 1939, as measured by the Bureau's index based on
the third quarter of 1939=100. At no time between January 1935
and September 1937 were prices below 98 percent of the base level nor
above 108 percent.
Throughout the Southern States, price trends were quite different.
Prices declmed in 1935-37 for the most part and by 1939, prevailing
prices were generally substantially lower than in the earlier years,
while in the North and East they were generally higher.
In the South Atlantic States, doors were selling at a higher level
relative to 1939 prices than in other areas until the end of 1936.
They rose 4 percent through November 1937, dropped 7 percent by
February 1938, and fell another 7 percent m March 1939, contrary to
trends in other parts of the country. In the East South Central area
also, retail prices moved differently from those in the East and North.
They dropped 14 percent in July 1936, regained 5 percent at the
beginning of 1937, and showed only a slight increase until October
1938, when they again dropped about 4 percent. In the West South
Central area, prices showed little change until April 1936, when the
level rose 4 percent. Only one subsequent change was reported — a
drop of 10 percent in December 1938, to a level some 6 percent below
that prevailing in 1935. In the Rocky Mountain area prices were
stable except for a 4 percent decrease in the summer of 1936, and an 8
percent increase in the spring of 1937. This level was mahitained
until the spring of 1938, when there was a drop of 11 percent, followed
by a 3 percent decrease to the base price in the spring of 1939 t^ a level
about 11 percent below that prevailing in 1935. On the Pacific
coast, prices remained unchanged through 1935, 1936, and 1937, with
a drop of approximately 20 percent in January 1938, followed by rela-
tively little change for the remainder of the period.
CONCENTRATION OF ECONOMIC POWER
293
Table 176. — Douglas fir interior doom
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February.-
March
April
May
June
July
Au^st
September
October
November....--
December
1936
January
February
March
April
May
June
July.
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
105.1
96.2
105.1
96.2
105.1
96.2
105.1
96.2
105.1
96.2
105.1
96.2
105.1
96.5
105.1
96.7
105.1
96.7
105.1
96.7
112.4
96.7
112.4
96.7
110.3
96.7
110.3
96.7
110.3
W.8
110.3
97.1
110.3
98.5
106.2
98.5
106.2
98.1
106.2
97.9
106.2
97.9
106.2
97.9
106.2
97.9
106.2
98.1
110.3
98.7
114.4
98.9
118.6
99.0
122.3
99.3
122.3
99.3
Year and month
1937— Continued
June
July
August. .-
September
October
November..
December
1938
January _
February
March
April
May. -
June
July -
August
September
October
November
December
1939
January
February ^.
March
k\m\
May
June.-
July
August
September
Index
Whole-
sale
122.3
122.4
124.8
124.8
124.8
124.8
106.2
106.2
106.2
122.4
116.5
116.5
116.6
116.5
116.5
116.5
100.0
100.0
100.0
100.0
100.0
104.1
104.1
104.1
104.1
100.0
100.0
lOO.O
Retail
99.3
99.2
99.2
99.2
99.2
99.2
98.3
98.1
97.7
97.7
97.1
97.1
97.0
97.0
97.0
97.2
97.2
97.2
96.3
95.3
95.4
94.5
94.8
94.8
100.0
100.0
100.0
100.1
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails. 2 feet 8 inches by 6
feet 8 inches by 1?^ inches; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
294
CONCENTRATION OF ECONOMIC POWER
Table 177. — Douglas fir interior doors
REGION I. NEW ENGLAND
(Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
P'ebruary
March
April
May
June
July
August
September
October
November
December
1936
January.--
February
March
April
May -.
June
July .-
August
September '
October
November
December..
1937
January
February
March
April
May
Index
Whole-
sale
Retail
105.0
85.5
105.0
85.5
105.0
85.5
105.0
8.5.5
105.0
85.5
105.0
8.5.5
105.0
8.5.5
105.0
95.5
105.0
95. 5
105.0
95.5
112.0
95,5
112.0
95.5
110.0
95.3
110.0
95.3
110.0
95.3
110.0
9.5.3
110.0
95.3
106.0
95.3
106.0
95.3
106.0
95.3
106.0
95.3
106.0
97.2
106.0
97.2
106. 0
96.9
110.0
96.7
114.0
100.2
118.0
100.2
118.0
112.6
118.0
112.6
Year an i month
1937— Continued
June
July
August
September
October. _ _
November
December
1938
January
February
March
April
May
June ---
July...
August...
September
October
November
December.
1939
January.
February
March
April
May
June
July
August
September
Index
Whole-
sale
118.0
121.5
125.5
125.5
125.5
125.5
106.0
106.0
106.0
121.5
116.0
116.0
116.0
116.0
116.0
116.0
100.0
100.0
100.0
100.0
100.0
104.0
104.0
104.0
104.0
100.0
100.0
100.0
Retail
112.0
112.6
112.6
112.6
112.6
112.6
112.fi
112.9
112.9
112.9
100.0
100.0
96.1
96.1
96.1
96.2
99.6
99.6
99.6
99.6
f)9. 6
99.6
99.9
99.9
KW.O
100.0
100.0
100.0
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by 6
feet 8 inches by 1?^ inches: each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOJIKJ POWER
Table 178. — Douglas fir interior doors
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0)
295
Year and month
1935
January
February . . _ _ . _
March
.\pril
May
June
July
.Vugust
September.
October
November
Ui'cember
1936
January
February
March
April
May
June
July.
August
September
October
November
December
1937
January
February
March
.\ I irii
May
Index
Whole-
sale
10.5. 0
105.0
105.0
105.0
105.0
105. 0
105.0
105. 0
105. 0
105. 0
112.0
112.0
110.0
110.0
110.0
110.0
110.0
lOfi. 0
100.0
106.0
106. 0
106.0
106.0
106.0
110.0
114.0
11,;. 0
121.5
121.5
Retail
83.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
8.3.8
83.8
83.8
83.8
83.8
83.8
83.8
83.8
«3.8
83.8
83.8
83.8
8.3.8
83.8
83.8
83.8
83.8
Year and month
1937— Continued
June
July...
August
September
October
November
December
1938
January
February
March. .i
April
May
June
July
-■August
September
October
November
December
1939
January
February
March
Aja-il
May
June -
July
August--
September
Index
Whole-
sale
121.5
121.5
125. 5
125.5
125.5
125.5
106.0
106.0
100.0
121.5
116.0
116.0
116.0
116.0
116.0
lie. 0
100.0
100, 0
100.0
100.0
100.0
104.0
104.0
104.0
104.0
100.0
100.0
100.0
Retail
83.8
83.8
83.8
83.8
83.8
83.8
83.8
88.2
88.2
88.2
88.2
88.2
88.2
88.2
88.2
88.2
88.2
88.2
88.2
100.0
100.0
100.0
100.0
Specification: Doors, Douglas fir. No. 1, interior, 5 cross panels, sohd stiles and rails, 2 feet 8 inches by
6 feet 8 mches by l-^g inches; each.
Wholesale: Carlots in mixed car?, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
296
CONCENTRATION OF ECONOMIC POWER
Table 1V9. — Douglas fir interior doors
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February...
March
April
May ---
June
July ---.
August
September
October
November
December
1936
January
February
March
April
May.
June
July
August .-
September
October
November
December.
1937
January
February _
March
April
May
Index
Whole-
sale
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
112.6
112.6
110.5
110.5
110.5
110.5
110.5
106.4
106.4
106.4
106.4
106.4
106.4
106.4
110.5
114.7
118.9
122.6
122.6
Retail
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
92.7
102.5
102.5
102,5
102.5
102.5
102.5
102.5
102.5
102.5
102. 5
102.5
102. 5
102. 5
Year and month
1937— Continued
June
July
August
September
October
November. _
December
1938
January
February _ . .
March
April
May
June
July.
August
September..
October
November
December
939
January
February
March
April
May
June
July
August
September
Index
Whole- Retail
122.6
122.6
126.8
126.8
126.8
126.8
106.4
106.4
106.4
122.6
116.6
116.6
116.6
116.6
116.6
116.6
100.0
100.0
100.0
100.0
100.0
104.2
104.2
104.2
104.2
100.0
100.0
100.0
102. 5
102.5
102.5
102.5
102.5
102.5
102. 5
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
102.8
101.1
97.4
97.4
97.4
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
6 feet 8 inches by \H inches; each.
Whole.sale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site. city.
CONCENTRATION OF ECONOMIC POWER
297
Table 180. — Douglas fir interior doors
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Yfiar and month
1935
January
February
March
April
May
June -
July -
August..
September
October
November...
December
1936
January
February.-
March
April
May.-
June
July
August -
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
105.2
98.5
105.2
98.5
105.2
98.5
105.2
98.5
105.2
98.5
105.2
98.6
105.2
106.1
105.2
106.1
105.2
106. 1
105.2
106.1
112.8
106.1
112.8
106.1
110.6
106.1
110.6
106.1
110.6
106.1
110.6
106.1
110.6
106.1
106.3
106.1
106.3
105.7
106.3
100.9
106.3
100.9
106.3
100.9
106.3
100.9
106.3
100.9
110.6
107.3
115.0
107.3
119.4
107.3
123.8
107.3
123.8
107.3
Year and month
1937— Continued
June --
July....
August
September
October
November
December
1938
January
February.
March ,
April _.
May
June
July
August
September ...
October _
November
December
1939
January
February
March
April
May
June -
July
August
September
Index
Whole-
gale
123.8
123.8
128.2
128.2
128.2
128.2
106.3
106.3
106.3
123.8
117.2
117.2
117.2
117.2
117.2
117.2
100.0
100.0
100.0
100.0
100.0
104.1
104.1
104.1
104.1
100.0
100.0
100.0
detail
107.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.6
103.8
103.8
J 03. 8
103.8
103.8
103.8
107.8
107.8
107.8
107.8
99.0
99.0
99.0
99.0
98.7
98.7
98.7
98.7
102.6
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
6 feet 8 inches by \H inches; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
298
CONCENTRATION OF ECONOMIC POWER
Table 181. — Douglas fir interior doors
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April ;
May
June
July
August
September
October
November
December .
1930
January
February
March
April
May :
June
July
August. ... . _
September
October ..
November
December. . .. ..
I OS-
January
February
March
April
May
Index
Whole-
sale
Retail
104.6
111.0
104.6
111.0
104.6
111.0
104.6
111 0
104.6
111.0
104.6
111.0
104.6
111.0
104.6
111.0
104.6
110.5
104.6
110.5
111.5
110.5
111.5
110.5
109,5
111.0
109.5
111.0
109.5
111.0
109.5
111.0
109.5
111.0
109.5
111.0
105.6
111.0
10.5. 6
111.0
105. 6
111.0
105. G
111.0
105. G
111.0
10.5. 6
113.2
109.5
114.9
113.4
114.9
117.2
114.9
120.8
114.9
120. 8
115.2
Year and month
1937— Continued
June..
July
August
September.
October
November
Decem ber
1938
January.
February
March
April
May
June
July
August
September
October
November
December ..
1939
January
February.
M arch
April
May
June
July
A ugust
S eptember
Index
Whole-
120. 8
120.8
124.7
124.7
124.7
124.7
105.6
105.
105.
120.
115.
115.
115.
115.
115.
115.
100.
100.
100.
100.0
100.0
103.9
103.9
103.9
103.9
100.0
100.0
100.0
Retail
115.2
115.2
115.2
115.2
115.2
115.2
108.0
110.0
107.1
107.1
107.1
107.1
107.1
107.1
107.1
107. 5
107.5
107.5
107.5
107.5
107.5
100.3
100.3
100.3
100.3
100.3
100.3
100.0
Snecification: Doors, Douplas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
G feet 8 inclies by 1^^ inches; each.
Wholesale: Carlots in inived cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCEN rilATlON OF ECONOMIC POWER
299
Table 182. — Douglas fir interior doors
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Vear and month
1935
January
February
March..
April ■
May
June ,
July
August.
September
October
November
December
1936
January. ,
February
March
April
May
June
July
August
September
October
November,
December.
1937
January
February
March
April
May
Index
1
Whole-
sale
II
Retail
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
105.3
112.6
112.6
110.5
110.5
125.6
110.5
113.4
110.5
113.4
110.5
113.4
106. 3
113.4
106.3
98.6
106.3
98.6
106.3
98.6
106.3
97.4
106.3
97.4
106.3
97.4
110.5
102.3
114.7
102.3
118.9
102.3
122.9
102.3
122.9
102.3
1
Year and month
1937— Continued
June
July
August
September
October
November
December...
1938
Janua ry
February
March
April
May
June
July.:.
August...
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Inder
Whole-
sale
122.9
122.9
127.1
127.1
127.1
127.1
106.3
106.
106.
122.
116.
116.
116.
116.
116.
116.
100.
100.
100.
100.0
100.0
104.2
104.2
104.2
104.2
100.0
100.0
100.0
Retail
102.3
102.3
102.3
102.3
102.3
102.3
102.3
104.1
104.1
104.1
104.1
104.1
104. 1
104.1
104.1
104.1
100.7
100.7
100.7
96.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
6 feet 8 inches by \% inches, each.
Wholi-salo: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Kctail: Di^bUt to contractor, delivered tc job site, city.
300
CON<J]i:NTJtA'l'U>X OF EOONUIMIC I'OWElt
"^J'ablk ]S.3.^ Douplas fir interior doom
HKniOiV VII. WEST SOUTH CFXTRAI.
[Wholpsale and retail prico indexes— Jiily-SeptcnibtT 193'J=1U().()|
Year and month
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January
February...
March
April
May
June .-
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
105.4
105.4
105.4
105.4
105.4
105.4
105.4
105.4
105.4
105.4
113.0
113.0
110.8
110.8
110.8
110.8
110.8
106.5
106.5
106.5
106.5
106.5
106.5
106.5
110.8
115.2
119.5
123.9
123.9
Retail
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
llu.3
110.3
110.3
110.3
110.3
110.3
Year and month
193<— Continued
June
July
August
September
October
November
December
1938
January
February
March
A pril
May
June
July...
August-
September
October
November
December
1939
January
February
March _-_
April
May
June
July
August
September
Whole-
sale
Index
Retail
123.9
123.9
128.3
128.3
128.3
128.3
106.5
106.5
106.5
123.9
117.4
117.4
117.4
117.4
117.4
117.4
100.0
100.0
100.0
100.0
100.0
104.3
104.3
104.3
104.3
100.0
100.0
100.0
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110.3
110. 3
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
Specification: Doors, Douglas fir, No. 1, Interior, 5 cross panels, solid stOes and rails, 2 feet 8 inches by
6 feet 8 inches by 1% inches, each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OP ECONOMIC POWER
301
Table 184. — Douglas fir interior doors
REGION Vni. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February-
March
April
May
June
July
August
September -
October
November.
December..
1935
January
February...
March
April
May
June
July
August
September.
October
November.
December..
1936
1937
January _ 111.4
February 116.0
March.. 120.5
April _. 125.0
May 125.0
Inde.x
Whole
sale
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
105.8
113.7
113.7
111.
111.
111.
111.
111.
106.
106.
106.
106.
106.
106.
106.
Retail
109.4
109.4
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
110.8
111.7
111.7
111.7
109.2
109.2
107.9
107.9
107.9
107.9
107.9
UI.O
114.8
115.7
115.7
Year and month
1937— Continued
June
July
August
September
October
Novembw
December
1938
January :
February
March
April -.
May
June
July. --
August
September
October _
November
December
1939
January
February
March
April
May
June
July
August
September.
Index
Whole-
sale
125.0
125.0
129.5
129.5
129.5
125.5
106.9
106.9
106.9
125.0
117.6
117.6
117.6
117.6
117.6
117.6
100.0
100.0
100.0
100.0
100.0
104.2
104.2
104.2
104.2
100.0
100.0
100.0
Retail
115.7
115.7
115.7
115.7
115.7
115.7
115.7
116.9
114.7
114.7
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
101.0
101.0
101.0
100.0
100.0
100.0
Sppcification: Doors, Douglas fir. No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
6 feet 8 inches by 1% inches; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
302
CONCENTIIATION OF ECONOMIC POWER
Table 185. — Douglas fir interior doors
REGION IX. PACIFIC
[Wholesale ani retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April-
May
June
July
August
September.
October
November.
December.,
January
February...
March
April
May
June
July
August
September.
October
November.
December.
January..
February.
March
April
May
1936
Index
AVhole-
sale
Retail
105.7
105.7
105. 7
105.7
105.7
105.7
105.7
105.7
105.7
105. 7
113.8
113.8
111.5
111.6
111.5
111.5
111.5
106.9
106.9
106. 9 >
106.9
106.9
106.9
106.9
111.5
116.0
120.6
125.2
125.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
121.2
122.0
122.0
122. 0
122.0
122.0
122.0
122.0
122.0
122.0
122.0
122.0
122.0
122.2
122.2
122.2
Year and month
Indp.K
Whole-
sale
1937— Continued
June
July....
August
September _.
October.
November
December
1938
January..
February
March
April..
May
June
July
August
September
October...
November
December.
1939
January
Febi uar i
March..
April
May
June ;
July
August
September..
125. 2
125.2
129.8
129.8
129.8
129.8
106.9
106.
100.
125.
117.
117.
117.
117.
117.
117.
100.
100.
100.
100.0
100.0
104.1
104.1
104.1
104.1
100.0
uO.O
100.0
Retail
122.2
122.2
122.2
122.2
122.2
122.2
122.2
100.7
100.7
100. 5
100. 5
100. 5
100.5
100.5
100.5
100. 5
100.6
100.6
100.5
100.5
100.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Doors, Douglas fir, No. 1, interior, 5 cross panels, solid stiles and rails, 2 feet 8 inches by
6 feet 8 inches by Mb inches; each.
Wholesale: Carlots in ml.xed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CHAPTEK XVIII
WINDOWS
DESCRIPTION OF THE INDUSTRY
The value of window sash produced in 1937 was $20,000,000, com-
pared with $25,000,000 in 1929. Tiie following table gives production
for the periods covered by the 1937 Census of Manufactures * from 1927
through 1937.
Production
Year
1933
1935 -._.
1937
Production
Year
Number
Value
Unit
value
Number Value
Unit
.value
1927.
1929
39, 838, 753
29, 125, 304
18, 724, 5G9
$29, 765, 614
25, 282, 048
10, 646, 325
$0.75
.87
.57
12, 727, 002
20, 058, 955
31, 174, 707
$0, 744, 003
12,021,045
20, 459, 001
$0.53
.60
1931
.66
Window sasli, as a rule, are produced in independent planing
mills although the production of planing mills operated in conjunction
with sawmills is valued at about $1,000,000 per year.^ Mills are
scattered throughout the entire country, but nine Slates, in five prin-
cipal areas, produce 70 percent of the national total. Map XI shows
the location of the States leading in sash production by value of prod-
uct. The States, in order of importance, are Iowa, California, Wis-
consin, Illinois, Washington, New York, Texas, Louisiana, and
Minnesota. The following table gives the 1937 production of sash,
by States.
Table 186. — The production of window sash, 1937
State
Iowa
Oaliforuia..
Wlsoonsin..
Illinois
Wa.shincton
New York..
Production
Value
$t, 088, 021
2, 363, 747
2, 225, 198
1, 406, 320
1, 392, 845
912, 731
Percent
of total
20 0
11.6
10.9
6.9
0.8
4.5
State
Production
Value
Te\a.s $740. 140
Louisiana. 'iU, 140
Minnesota... .'>46, 230
New Hampshire 1 121,810
Orepon I 414,547
Otlier States (37)i.... 5.333,272
Percent
of total
3.6
3.0
2.7
2.1
2.0
25.9
' Each less than 2 percent.
Source: Census of Manufactures; Planing mill products, table 6, p. 534.
Various species of wood are used in the production of sash, but the
more important are Ponderosa and white pine. Fir and sugar pine
are used on the West Coast, while in the South, yellow pine is the
' Census of .Manufactures, 1937: "Planinpr mill products," table 5, p. 5.33.
• Production data for windows are available only on open window sash (unglazed), while prices deal with
the glared or finished window. This dlflerence in the data must be considered in interpreting this dis-
cussion.
303
304
CONCENTRATION OF ECONOMIC POWER
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CONCENl'iiATiON OF EC(^NOaiIC I'OWJni 305
principal inalorial. The type of wood used does not always depend
upon the geographical location of producers, since the raw material
is onl)^ a small factor in the value of the finished product. For exam-
ple, one of the leading producers of Ponderosa pinemillwork is located
in Iowa, a State that produces no Ponderosa pine.
Many different types of sash are produced in the industry. Due
to constant changes in residential designs, new types of sash are being
constantly introduced and old types discontinued. Many companies
manufacture to meet architects' specifications. However, there are
certain standard types, the price trends of which should accurately
reflect the trend of the industry as a whole. The one originally
chosen for this survey was Ponderosa pine, No. 1, 2 light, check rail,
open, V/i inches thick, 24 by 24 inches glass size. Wliolesale prices
were obtained on this specification in a few cases, but in order to
obtain adequate price series, it w^as necessary to substitute "glazed"
for "open."
In certain cities, open sash are sold to contractors to be glazed at
the job site.^ This practice prevails principally in those centers where
the glaziers' union is strong and desires that glazing be done at the
job site. As a rule, the small manufacturers install the glass at the
factory and market glazed sash only. The few large manufacturers
sell both glazed and unglazed sash. The distributor who buys the
open sash usually installs the glass and sells the finishea window to
the retailer.
PRICE STRUCTURE
Channels of distribution for w^indow sash are, in general, similar to
those for doors and other millwork. The larger producers usually
sell to jobbers who, in turn, distribute to dealers. Contractors are
serviced by the dealers. The usual discounts allowed by the pro-
ducers are 3 percent to commission men, and 2 percent for cash in
10 days or by the 10th proximo.
Large producers usually quote prices in mixed carlots, but small
producers sell on a less-than-carlot basis. When delivery is made by
truck, the minimum is frequently set at a truckload. Many producers
quote prices effective on minima of 100 or 200 windows or openings.
"Windows are usually sold on a delivered basis. Small m.ills, as a
rule, limit their sales territory and quote identical deUvered prices
anywhere within such area.
The dealer, or retailer, sells the windows to the contractor, delivered
to job site, in any quantity desired by the buyer.
PRICE LEVELS AND TRENDS
Geographical Variations.
The average of typical wholesale prices for glazed windows in 19
cities was $1.53 and the average of retail prices was $2.29. There is
considerable variation among the cities. In September 1939 whole-
sale prices ranged from $1.23 to $1.82; the variation was even greater
3 Actually the glazing operation represents a larger proportion of the total cost of the window than that
represented by the sash. It is reported that if a sash costs .10 cents, the window completely j^lazed runs
$1.25 to $1.50.
306
CONCENTllATION OF ECONOMIC L'OWER
in the retail prices which ranged from $1 .73 to $2.80. Thp distribution
follows:
Number of cities
Typical prices
Xumber of cities
Typical prices
Whole-
sale
Retail
Whole-
salu
Retail
$1.20 to $1.29.
4
2
1
7
1
.$2.10 to $2.19
3
$1..30to$1.39
$2.20 to $2.29 . . .
$1.40 to $1.49
.$2.30 to $2.39 . .
.;
$1.50 to Sl.M...
$2.40 to $2.49
4
$1.60 to $1.69...
2
1
$2.50 to $2..59
1
$1.70 to $1.79
•$2.60 to $2.69
$1.80 to $1.89
$2.70 to $2.79
o
$1.90 to $1.99...
$2.X0 to $2.89 ....
1
$2.00 to $2.09.
Price Trends. (See chart XXII and tables 187 to 196.)
The wholesale price of glazed windows for the United States has
shown a general upward trend over the period from January 1935 to
September 1939. The Bureau's index of window prices in January
1935 was 89, based on July-September 1939= 100. A series of minor
increases through 1935 and 1936 gave a net advance of 4 percent.
In January 1937, a sharp increase of 6 percent initiated a rapid up-
swing that continued until September 1937, when prices leveled off
for the remaining months of the year. The total rise during 1937
was 18 percent. During the first 8 months of 1938 prices declined
steadily, losing some 8 percent, then remained relativelv unchanged
from late 1938 through Sopteniber 1939.
The national average of retail prices in general followed the pattern
estabhshed in the wholesale trend, except that the wide swings up in
1937 and down in 1938 were materially leveled out. Thus, while the
wholesale increase in 1937 was 18 percent, the increase in retail prices
was only 6 percent. The wholesale price decline in 1938 was about
10 percent, the retail 2 percent.
There were noticeable regional variations in the price behavior of
windows. The pattern in the West North Central area closely fol-
lowed that of the national composite. In the East North Central
area retail prices shot up in 1937 and declined in 1938, experiencing a
net gain of 34 percent. In the South Atlantic, East South Central,
and Rocky Mountain areas, the spreads narrowed during the 5-ycar
period. In the South Atlantic, wholesale prices showed a net gain
of 1 percent during the period while retail prices declined 4 percent. In
the East South Central, retail prices gained only 2 percent while
wholesale prices advanced 20 percent. This is because the wholesale
advance in 1936 and 1937 was reflected to a lesser degree on the retail
side, while on the downswing retail prices feU farther. In the Rocky
Mountain area there was a net fall of 1 1 percent in retail prices, whde
wholesale prices in 1939 were about the same as in 193"». Retail
prices fell in 1936 and the rise in 1937 merely reflected a recovery.
In 1938, retail prices fell 15 percent, while wholesale prices only
dropped back to their j^revious levels.
CONCENTRATION OF ECONOMIC POWER
307
Chabt XXII
PONDEROSA PINE WINDOWS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
UNITED STATES - Wtightad A««rag« Pric*
; 1
^.ET.,,. J^J^^^^
i
!
i ' i
: 1 1 '
'''III
REGION I -NEW ENGLAND
1 i r^ ! 1
J^ ■ 1 i
It-^-^Cr.,. 1 ''-=' ^,,,»l, , i
-^ 1
■ I ' \
i i
REGION
TL
MIDDLE ATLANTIC
1
aCTAK. !
1
~ '
i
1 1
— -
--L-"-^:-"
REGION Hr - EAST NORTH CENTRAL
REGION OE - WEST NORTH CENfRil.
70
60
^.^^- .
■ r~- - '
i
i
i 1
! 1 1
1 1
I93S 1936 1937 1938 1939 1940 1941
UNITED STATES BUHEAU Of LABOR STATIST, CS
REGION X - SOUTH ATLANTIC
j \^ 1 1 ! ! 1
■ CTAIL-W
/ \
L-
-^=-'
^
WHO ue SALE
1
1
!
i
1
! i
REGION 21 • EAST SOUTH CENTRAL
. 1 ' ! 1
1 ^RETAIL 1 1 1
F^ ■ .
/ 'wholesale 1 1
.^.__. :.._._. L i 1 L
REGION SIT - WEST SOUTH CENTRAL
! : i !
' \ — V^ \
RETAIL -.J 1 1 I 1 1
/ ^amOLESALE 1 1 1
III
1 1 i ' 1 1 1
REGION -TTir - ROCKY MOUNTAIN
-^
T-'r3 '
..,»"', K
1
j WHOLESALE 1
1
\ 1 1"""
i 1 1
i ! i ! i
REGION
31- PACIFIC
1
1
■""^:j
:tv\
_J Lw^E
^^^^
1935 1936 1937 \939 1939 1940 1941
308
CONCENTRATION OF ECONOMIC POWER
Table 187.- — Ponderosa pine windows
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
January
February—,
Man;h
April
May
June -.
July
August
September-
October
November-
December..
January
February.- -
March
April
May.
June.
July
August
September-
October
November-
December-.
January..
February.
March
April
May
1935
1936
Index number
Whole-
sale
89
2
2
2
2
89.2
89.2
89.2
90.6
90.6
90.6
90.6
90.6
91.6
92.9
92.9
92.9
92.9
92.9
93.1
93.1
93.1
93.1
93.1
93.1
98.3
98.3
98.8
100. 2
.101.5
Retail
98.7
98.7
99.2
99.2
99.6
99.6
99.6
99.6
99.6
97.0
97.0
97.2
97.5
97.6
97.6
97.8
97.7
97.7
97.8
97.8
97.8
103.4
103.7
103.9
104.2
104.2
Year and month
1937— Continued
June
July
August
September
October
November _
December
1938
January.
February.-
March -.-
April
May
June
July-..
August
September
October
November
December
1939
January
February
March..
-*.pril
May
June
July
August
September
Index number
Whole-
sais
108.6
108.6
108.6
109.8
109.8
109.8
109.8
108. 1
106.9
106.9
106.9
106.5
104.6
104. 6
100.2
99.2
99.2
99.2
99.2
99.7
99.7
99.9
99.9
99.9
99.9
99.9
99.9
100.2
Retail
104.3
104.1
104.1
104.2
104.2
104.2
104.1
103. 5
103.4
103. 3
102.7
102.4
102.4
J02.4
102.3
102.3
102.2
1(12. 1
101.7
99. 9
100. 0
100. 0
1110. 0
100.0
100.0
100.0
100.0
100.1
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, 1% inches thick, 24 by 24 inches, glass
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 188. — Ponder osa pine windows
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
309
Year and month
January
February-
March
April
May
June
July
August
September-
October
November.
December..
January
February...
March
April
May.-
June
July.
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1937
Index number
Whole-
sale
Retail
84.6
84.6
84.6
84.0
84.0
84.0
84.0
97.5
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.8
96.2
96.2
96.2
96.2
101.1
101.1
101.6
102.0
102.0
102.0
116.8
116.6
Year and month
1937— Continued
June -
July
August
September
October
November
December
January
February...
March
April
May
June
J\ily
August
September.
October
November.
December..
1938
January
February-
March
April
May
June
July— . — .
August
September.
1939
Index number
Whole-
sale
100.0
100.0
100.0
100.0
100.0
100 0
100.0
100.0
100.0
Retail
116.6
116.6
116.6
117.1
117.1
117.1
116.6
116.6
116.6
116.6
97.4
97.4
97.4
97.4
97.4
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.0
100.0
100.0
100.0
100.0
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, l?i inches thick, 24 by 24 inches, glass
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
310
CONCENTRATION OF ECONOMIC POWER
Table 189. — Ponderosa pine windows
EEGION n. MIDDLE ATLANTIC
[Retail price index— July-Septembei- 1939=100.0]
Year and month
1935
January
February
March
April
May. -
June
July
August
September.- -
October
November. . .
December--.
1936
January
February
March
AprU
May
June... -
July -.
August
Retail
Index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
loao
100.0
100.0
100.0
100.0
100.0
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
April
May
June
July
Augiist
September
October
November...
December.-
1938
January
February -
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
Year and month
1938— Continued
March
April -.
May.- ...
June
July
August
September..
October
November
December...
1939
January
February
March
April
May
June
July
August
September
Retail
index
100.0
100.0
lUO.O
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. c
100.0
100.0
100.0
100.0
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, 1% inches thick, 24 by 24 inches, glass
size, "western" opening.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
Table 190. — Ponderosa pine windows
REGION in. EAST NORTH CENTRAL
(Retail price index— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July...
August
September...
October _
November...
Dei 'ember
1936
January
February
March
April
May
June.
July
August
RetaU
index
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
74.2
75.0
75.0
77.9
77.9
Year and month
1936— Continued
September...
October
November
December.-
1937
January.
February..
March
April —
May...,
June
July
August —
September-
October
No veTi . oer
Deceriber
1938
January..
February... ,
Retail
index
77.9
77.9
77.9
77.9
104.5
104.6
104.5
104.5
104.5
104.5
104.5
104.5
104.5
104.5
104.5
104.5
105.2
105.2
Year and month
1938— Continued
March
April.-
May
June
July
August -.
September
October
November
December.
1939
January
February
March
April...
May.. 1
June
July
August-.
September
Retail
index
105. 2
105.2
105.2
105.2
105.2
105.2
105.2
105.2
105. 2
104.9
99.7
99.7
99.7
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Windows, ponderosa pine. No. 1, 2 light, check rail, m inches thick, 24 by 24 inches, glass
size, "western" opening.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
CONCKN'J'KAIJON OF ECONOMIC POWER
Table 191. — Ponder osa pine vnndows
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
311
Year and month
Index numbers
1935
January..
February
March..
April.
May .-
June
July
August-.
September
October
November
December..
1936
January
February
March
.^.pril
May.
June
July
August
[September
October
November
December
1937
January
February
March
April
May
Whole-
sale
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
95.4
102.9
102.9
102.9
102.9
102.9
Retail
94.4
94.4
94.4
92.8
92.8
101.7
101.8
101.8
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.5
100.2
100.2
100.2
100.2
100.2
107.0
108.7
108.7
108.7
108.7
Year and month
1937— Continued
June
July...
August
September.
October
November
December
1938
January
February
March
April
May
June
July
August
September...
October .._
November
December
1939
January.-
February
March
April
May
June
July .
August
September
Index numbers
Whole-
sale
102.9
102.9
102.9
118.9
118.9
118.9
118.9
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
97.1
97.1
97. 1
97.1
101.4
101.4
101.4
101.4
101.4
101.4
101.4
101.4
97.3
Ret:iil
111.3
106.7
106.7
106.7
106.7
106.7
106.7
111.3
111.3
111.6
111.6
104.8
104.8
104.8
104.2
104.2
104.2
104.2
104.2
99.1
99.1
99.1
99.1
99.0
99.0
99.0
99.0
101.9
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, \% inches thick, 24 by 24 inches, glass
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Reiail: Glazed and/or open, dealer to contractor, delivered to job site, city.
312
CONCENTRATION OF ECONOMIC POWER
Table 192. — Ponder osa pine tvindows
KEOION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939—100.0]
Year and month
1935
Junuary
February
March
April..
May
June
July...-
August
September
October..
November.
December
1936
January
February
March
April..
May
June.
July
August
September
October
November^
December
1937
January
February
March
April
May
Index numbers
Whole-
sale
Retail
98.5
104.3
98.5
104.3
98.6
104.3
98.5
104.3
98.5
104.3
98.5
105.2
98.5
105.2
98.5
105.2
98.5
105.2
98.5
105.2
98.5
105. 2
98.5
105.2
98.5
107.2
98.5
107.2
98.5
107.2
98.5
107.2
98.5
107.2
98.5
107.2
99.1
107.2
99.1
107.2
99.1
107.2
99.1
107.2
99.1
107.2
99.1
107.2
99.1
110.1
99.1
111.0
99.1
111.0
99.1
III.O
104.7
110.6
Year and month
1937— Continued
June
July
August-.
September
October
November..
December
1938
January
February
March
April
May
June
July ,
August
Spetember...
October
November _
December
1939
January
February
March
April
May .,
June
July
August
September
Index numbers
Whole-
sale
104.7
104.7
104.7
104.7
104.7
104.7
104.7
104. 7
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
99.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
110.6
110.6
110.6
110.6
110.6
110.6
110.6
107.8
107.8
107.8
107.8
107.8
107.8
107.8
106.9
106.6.
106.6
106.6
106.fi
100.3
100.3
100.3
100.3
100.3
100.3
100.0
100.0
100.0
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, 1% inches thick, 24 by 24 inches, glass
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail; Glazed and/or open, dealer to contractor, delivered to job site, city.
Cl^)NCEx\TRAT10N OF ECONOMIC POWEll
313
Table 193. — Ponder osa pine windows
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1959= 100.0]
Year and month
1935
January
February
March
April
May
June
July
.\UgUSt--.
September..
October
November.
December
1936
January
February
March
April...
May
June ._
July...
August
September
October
November
December
1937
January
February
March
Apiil..
May...
Index numbers
Whole-
sale
Retail
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
82.8
98.0
S2.8
98.0
82.8
98.0
82.8
98.0
89.1
98.0
89.1
98.0
89.1
98.0
89.1
98.0
89.1
98.0
89.1
98.0
89.1
99.2
89.1
99.2
89.1
99.2
89.1
9(i. 2
89.1
96.2
89.1
96.2
104.7
110.3
104.7
110.7
104.7
110.7
104.7
110.7
104.7
110.7
Year and month
1937— Continued
June
July.
August
September
October
November ,
December
1938
January
February.
March
April
May
June
July-.
AufTust
September
October
November
December
1939
January.
February...
March
April
May
June
July
August
September
Index numbers
Whole-
sale
104.7
104.7
104.7
104.7
104.7
104.7
104.7
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
110.7
110.7
110.7
110.7
110.7
110.7
110.7
104. .'■.
104.5
101.9
101.9
101.9
101.9
101.9
101.9
101.9
101.9
96.6
96.6
90.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Spociflcation: Windows, ponderosa pine, No.l, 2 light, cheek rail, l?i inches thick, 24 by 24 inches, ghis s
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
314
CONCENTRATION OF ECONOMIC POWER
Table 194. — Ponderosa pine windows
KEOION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February..
March
April
May
June.-
July...
August
September
October
November
December
1936
January.
February
March
April
May
June. _.
July _.
August
September
October
November
December
1937
January
February
March
April
May
Index numbers
Whole-
sale
82.1
82.1
82.1
82.1
82.1
82.1
82,1
82.1
82.1
82.1
82,1
82.1
88.6
88.6
88.6
88.6
88,6
88,6
88.6
88.6
88.6
88.6
88.6
88.6
105.7
105.7
105.7
105.7
105.7
Retail
88.
94.4
94.4
94.4
94.4
94.4
94.4
94.4
04.4
94.4
105.4
105.4
105.4
105.4
105.4
Year and month
Index numbers
1937— Continued
June
July
August
September.
October
November
December
1938
January
February
March..
April
May
June
July
August
September
October
November
December
1939
January.
February
March
Ai)ril
May
June -.,.
July
August
September.
Whole-
sale
105.7
105.7
105.7
105.7
105.7
105.7
lO.i. 7
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
100.0
100,0
100,0
100.0
100.0
100.0
100,0
100,0
100.0
Retail
105.4
105.4
105.4
105.4
105. 4
105.4
105.4
105.4
105.3
105.3
105.3
105.3
105.3
105. 3
105.3
105.3
105.3
105. 3
100.0
100.0
100, 0
100.0
100,0
100,0
100.0
100.0
100.0
100.0
Specification: Windows, ponderosa pine, No. 1, 2 light, check rail, l?s inches thick, 24 by 24 inches, glass
size, "western" opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivcrt'd to job site, city.
CONCENTRATION OF ECONOMIC POWER
315
Table 195. — Ponderoaa pine windows
BEQION Vm. ROCKY MOUNTAIN
[Wholesale and retaU price Indexes— July-September 1939=100.0]
i'ear and month
1935
January
February
March
April
May
June
July.
August
September
October
November
December
1936
January
February
March
April
May
June
July
AUgTlSt
September.
October..
November
December..-
1937
January
February
March
April
May.
Index
Whole-
sale
Retail
98.8
113.1
98
8
113.1
98
8
113.1
98
8
113.1
98
8
113.1
98
8
113.1
98
8
113.1
98
8
117.3
98
«
117.3
98
8
117.3
98
8
117.3
98
8
117.3
98.8
117.3
98
8
117. 3
98
8
117.3
98
8
117.3
98
8
117.3
98
«
117.3
98
8
108.0
98
8
IOC. 9
98
8
106.9
98
8
106.9
98
8
106.9
98
8
108.0
98.8
108.0
98.8
114.2
107.8
110.8
107.8
116.8
107
8
116.8
Year and month
1937— Continued
June
July
August
September
October
November..
December...
1938
January
February
March
April ,
May
June ,
July..
August.
September
October
November
December
1939
January... .,
February
March
April ,
May.
June
July..
August.
September
Index
107.
107.
107.
107.
107.
107.
107.
107.
107,
107
107.
99,
99
99,
99,
99,
99,
99.
99,
99,
99,
99,
99,
99,
100,
Retail
116.8
118.3
118.3
118.3
118.3
118.3
118.3
118.7
118.7
116.2
107.7
107.2
107.2
107.2
107.2
107.2
103.0
103.0
103.0
100.5
100.5
100.5
100.5
100.5
100.5
100.0
100.0
100.0
Specificatir.n: Windows, ponderosa pine, No. 1, 2 light, check rail, 1^6 inches thick, 24 by 24 inches, glass
size, "westorn" opening.
Wholesale: Open, carlo'ts in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail; Glared and/or open, dealer to contractor, delivered to job site, city.
316
concentr'ation of economic power
Table 196. — Ponder osa pine windows
REGION IX. PACIFIC
[Wholesale and retail price indexos— July-September 1939=100.0]
Year and month
1935
January
February.
March
April
May-
June
July
Aufust
September
October -.-
November
December
1936
January
February --.
March -.
April
May
June ---
July
August
September -.
October.-
November
December
1937
January-
February
March
April
May
Index
Whole-
sale
85.3
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
100.9
100.9
100.9
107.8
107.8
RetaU
102.0
102.0
103.1
103.1
103.1
103.1
103.1
103.1
103.1
103.1
103.1
103.1
103.1
103.1
104.2
104.2
104.2
Year and month
1937— Continued
June --
July - -..
August ---
September
October
November
December
1938
January
February
March - —
April
May
June--
July-- -
August
September
October
November
December
1939
January
February -
March-- ,
April
May
June -
July - -
August
September -- -
Index
Whole-
sale
107.:
107.;
107.;
107.
107.
107.
107.
107.
107.
107.
107.
107.
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
101.9
Retail
104.2
104.2
104.2
104.2
104.2
104.2
104.2
100.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
specification- Windows, ponderosa pine, No. 1, 2 light, check rail, \H inches thick, 24 by 24 Inches, glass
size, "western' opening.
Wholesale: Open, carlots in mixed cars, manufacturer to jobber, f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivered to job site, city.
CHAPTER XIX
HEATING EQUIPMENT
Representative specifications were determined for the following
items of plumbing and heating equipment used in residential building:
heating boiler, radiation, water closet, lavatory, bath tub, sink, and
range boiler.
Although plumbing and heating equipment are often grouped for
purposes of discussion, they are in fact produced by a number of
distinct industries. Plants producing heating boilers also manufacture
radiation; plants making plumbing may or may not produce heating
equipment. The large manufacturers of heating and plumbing equip-
ment do not ordinarily produce range boilers. However, the larger
finns often stock range boilers, buying from the smaller producers
and selling to jobbers. In this report, each principal group of products
is discussed separately.
HEATING BOILERS AND RADIATION
DESCRIPTION OF THE INDUSTRY
The value of product in 1937 was approximately $15,975,000 for
cast-iron steam and hot-water heating boilers and $14,750,000 for
cast-iron radiation. Cast-iron boilers represented 59.7 percent of
all boilers produced and 3.6 percent of all heating and cooking ap-
paratus (except electric), while cast-iron radiation was 86.3 percent of
all radiation produced and 3.3 percent of all heating and cooking
apparatus (except electric). No information is available on the value
of product by States.
Table 197. — Geographical distribution of production of heating and cooking
apparatus, except electric, 1937
Production
State
Value
Percent of
total
Illinois
$96, 500. 000
66,500,000
40,400,000
37, 400, 000
25. 400, 000
23, 300. 000
21.200,000
20,500.000
108,100,000
22.0
Ohio _ ,
15.1
Mirhi<!an
9.2
Pennsvlvania _
8.5
New Vork.
5.8
Massachusetis '.
5.3
Wisconsin . . . .
4.8
California
4.7
Other States (27)> '.
24.6
Total value United States -
439, 300, 000
100.0
' Total number of producing States is 35.
Source: Census of Manufactures, 1937, p. 944.
317
318
CONCKNTKATION OF ECONOMIC POWER
According to the Census of Manufactures, 830 establishments were
engaged in the manufacture of heating and cooking apparatus (except
electric) in 1937, but the number of establishments engaged in pro-
ducing heating boilers and radiation as distinguished from other
heating and cooking apparatus is not available. Seventy-five percent
of the industry as a whole is concentrated in 8 States, all of which,
except California, are in the area east of the Mississippi River and
north of the Ohio River. (See map XII.)
Although heating apparatus is produced by a considerable number
of companies, production of boilers and radiation is fairly well con-
centrated. According to the Department of Commerce, during 1937
54.9 percent of the value of heating boilers, and 61.0 percent of the
value of radiation, was produced by the four largest companies in
the industry.
>[ap XII
IMPORTANT STATES IN THE PRODUCTION OF
HEATING AND COOKING APPARATUS * 1937
Specifications.
The boiler selected for pricing in this study was a hand-fired heating
boiler for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, for approximately
380 square feet installed steam radiation.
The radiation item priced was large core, cast-iron radiation, 26
inches high.
GEOGRAPHICAL PRICE STRUCTURE
Heating boilers and radiation are generally sold on a combination
zone and freight equalization system, subject to numerous modifica-
tions.^ For example, one large company has five freight plans apph-
cable to different sections of the country and different situations. In
certain States prices are quoted f. o. b. manufacturing plants or as-
» This analysis is based on infcnnation obtained from most of the large producers and from a few small
Arms.
CONCENTRATION OF ECONOMIC I'OWi^ll ^^Q
aemblmg plants, with full freight allowed to railroad points at destina-
tion. In other States prices are quoted f. o. b. manufactiuing plants,
with actual freight charges not to exceed 30 cents per 100 pounds
allowed, on either caiiot or less than carlot shipments to any railroad
point or destination; or f. o. b. assembling plants with no freight al-
lowance. Freight costs will generally be equalized with competitive
points of manufacture or distribution. In addition, there are various
modifications or exceptions to the above methods.
CJuLiinels oj Distribution.
Channels of distribution in the heating industry are relatively rigid.
Sales are typically from the manufacturer to the jobber or wholesaler,
then to the plumbing or heating contractor, who in turn installs the
equipment. Most consumer purchases are made through the plumb-
ing contractor. Some sales are made by the manufacturer directly to
large retailers, such as mail order houses, chain stores, and coopera-
tives. Direct sales are also made to large users, such as the Govern-
ment, industrial users, and contractors on large housing projects.
Two of the larger companies maintain company-owned wholesale
outlets in many large cities, but sell also through independent whole-
salers and jobbers. Another large company sells exclusively through
independents but operates company-owned display rooms in many of
the cities included in the survey. Smaller companies usually sell
exclusively through independent distributors.
Trade, Quantity, and Other Discounts.
Trade discomits to jobbers and dealers are customarily 15 or 20
percent off the hst price for heating boilers and 15 percent for radia-
tion. Quantity discounts to the trade apply to orders of the specified
quantities when ordered or released for immediate shipment; to orders
from one buyer, covering a contract with one owner ordered sliipped
in carlots only within 12 months from date order is placed, or for in-
stallation in one building prior to its completion. Quantity discounts
ordinarily apply only to straight carlot shipments of radiators and do
not apply to mixed carlots of radiators and boilers.
Tlie discount for carlot orders is customarily 5 percent off the trade
base price (list less 15 percent or 20 percent, depending on the com-
pany). When the order is for two or more carlots some companies
increase the quantity discount to 7}^ percent. . In some instances
companies also increase the quantity discount on radiators to 10 per-
cent if the order is for sLx or more carlots.
For radiators a carlot minimum is one containing not less tlian
5,500 square feet, while a minimum carlot shipment of heating boilers
is not less than 24,000 pounds.
For the industry generally, invoices dated from the 1st to the 15th
of the month, inclusive, are subject to a cash discount of 2 percent if
paid on or before the 25th of that month and are due net on the next
succeeding day. Invoices dated from the 16th to the end of the month,
inclusive, are subject to a cash discount of 2 percent if paid on or before
the 10th of the next following month and are due net on the next
succeeding day.
Freight allowances are deducted from the invoice before applying
the cash discount. Prepaid freight or cartage charges paid by the
producer and added to the invoice are not subject to cash discount.
320
CONCENTRATION OF ECONOMIC POWER
In States where any manufacturers' or sales tax is payable on the
transaction, this tax is added to the price.
Freight Allowances. (See table 198.)
Freight allowances vary shghtly from producer to producer, but
the same general pattern prevails. The United States is divided into
several zones. In most of the area east of the Mississippi and north
of the Ohio Rivers, prices are quoted f. o. b. manufacturing or assem-
bling plants with full freight allowed to railroad points of destination.
In the rest of the United States the freight allowance f. o. b. manu-
facturing plants is ordinarily limited to 30 cents per 100 pounds on
both carlot and less than carlot shipments ; no allowance is granted on
shipments f. o. b. assembling plants. However, freight costs will be
equalized with competitive points of manufacture or distribution. A
few locahties constitute exceptions to these general practices. Freight
allowances are not granted on repairs or shipments of less than 100
pounds.
Table 198. — Typical freight allowances to selected cities in equalizing with nearest
producing plant
City
Radiators (per 100
pounds)
Boilers (per 100
pounds)
Carlot
rate
Allow-
ance
Carlot
rate
Allow-
ance
Portland, Oreg.:
Rail <.
$1.05
1.90
1.05
>.90
1.05
.98
5.89
11.13
>.79
".62
1.68
».46
«.42
.36
.29
.60
.61
.S8
.76
$0.30
.55
.30
.55
.30
.55
.43
.42
.44
.34
.40
(«)
.31
.30
.30
.30
.30
.30
.30
$1.19
a. 99
1.19
2.99
1.19
» 1. 05
«1.08
1.10
$0.30
Rail and Water -
.40
Seattle, Wash.:
Rail
.30
Rail and water
.40
Los Angeles, Calif.:
Rail -
.30
.40
Houston, Tex
.51
Miami, Fla -
.30
Charleston, S. C:
Rail r—
.82
.68
>.50
«.56
'.57
.36
«.65
«.80
0.67
«.76
.30
Charlotte. N. C --- --
.30
.34
Des Moines, Iowa
.41
Minneapolis, Minn.:
Rail -
.43
.30
.40
Wichita, Kans :
.30
Sioux FaUs, S. Dak -
.39
Fargo, N Dak „ -
.34
' To equalize Bayonne, N. J., delivery.
» To equalize Buffalo, N. Y., delivery.
» To equalize rail, water and rail delivery, Bayonne, N. J.
* To equalize Litchfield, HI., delivery.
» Full freight.
• To equalize Michigan City, 111., delivery.
' To equalize Sheboygan, Wis., delivery.
For foreign sales, shipments are sold f. o. b. shipping point with
freight allov/ed to the port of exit as on domestic shipments.
Freight equalization plays an important part in the pricing of both
boilers and radiation, varying from the basic 30 cents per 100 pounds
on deliveries to some cities to full freight allowance on others.^
» For example, In Burlington, Vt., Manchester, N. H., and Portland, Maine, radiation is freight equal-
ized with competitive points of distribution, placing these cities in the full freight allowed group. For ra-
diation the freight is also fully allowed to equalize Buffalo, N. Y., delivery.
CONCENTRATION OF ECONOMIC POWER
321
Other Terms oj Sale.
Prices are guaranteed for a limited time. If an advance occurs in
the schedule of base prices, "immediate shipment orders" are accepted
and invoiced at prices quoted if placed within 30 days of the price
advance. On "future delivery orders" buyers are allowed 30 davs in
which to place orders covering bona fide contracts actually closed
prior to the date of advance and those on which actual bids were sub-
mitted prior to the advance. For "hold orders" placed either prior
to or after the advance, if released for immediate shipment within 30
days from the date of the advance, invoices are at the prices quoted
before the advance. If not released within 30 days after the advance,
'hold orders" are invoiced at the price in effect when released for
shipment.
PRICE LEVELS AND TRENDS
The prices of heating boilers and of radiation vary considerably
geographically due primarily to variations in the freight allowances.
HEATING BOILERS
Geographical Variation in Prices and Spreads.
The wholesale prices of heating boilers in January 1935 ranged
from about $75 to $80 in "zone A" cities to $105 to $110 in the Kocky
Moimtain area where a substantial freight charge is paid by the
purchaser.
The lowest wholesale prices recorded during the period studied
occurred from November 1937 to March 1938; the pric? range was
about $72 to $102. Highest prices were reported during September-
October 1937, when the range was from $88 to $120.
In September 1939 wholesale prices for heating boilers ranged from
a low of approximately $75 to a high of approximately $110. Retail
prices varied from $90 in a city near the manufacturing plant to $146
in a city in the Rocky Mountain area. The distribution by city for
both wholesale and retail prices is shown below, on chart XXIII, and
in table 199. The country- wide variations in the prices and the close
relationship between the wholesale and retail series are clearly indi-
cated.
Typiail price
Number of
cities
Typical price
Number of
cities
Whole-
sale
Retail
Whole-
sale
Retail
s::. to $79.9fl
13
6
8
6
6
1
4
3
5
11
$115 to $119.99
4
$80 to $84.99
$120 to $124.99
2
$85 to $89.99
$125 to $129.99
8
$90 to $94.99
$130 to $134.99
6
$95 to $99.99
$135 to $139.99
2
$100 to $104.99...
$140 to $144.99
2
$105 to $109.99
$145 to $149.99
1
$110 to $114.99
In wholesale" prices 13 cities fall in the $75 to $80 class and S in the
$85 to $90 group.
This concentration of a iiiiinbor of cities in those price classes is prob-
abl}- the effect of zone pricing and freight eeiiialization practiced in the
322
CONCENTRATION OF ECONOMIC TOWER
Chabt XXIII
HEATING BOILERS
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES
»150
145
140
135
130
125
120
9H
•
7C
eo»
BF
SB
•
70
•
5A
•
6(
)
7
•
B
51
•
7A
•
9A«»5H
7e
•
•9C
9B
BE
•
SB
•
IE
•
SO
iF •
{lF,2C,3f
\>S0,5B e
.3C,
6A
\
^.
lAa SE
•
80
IE
•
IC
40
4B
loaae
4A
2A
t
3A
RETAIL PRICES
130
I 10
105
>75 80 85 90 95 100 105 110
WHOLESALE PRICES
100
U.S.BUREAU OF LABOR STATISTICS
CONCKNTRATION OF ECONOMIC POWER
323
industry. For retail prices, 11 cities reported a range between $110
and $115 while 8 cities fell in the $125 to $130 class. The tendency of
cities to be concentrated in two price classes is to be expected in this
distribution also because of the wholesale price strifcturo.
As shown below, the average wholesale and retail prices in November
1939 in the cities surveyed were $87.95 and $119.76. The average
spread or difference between .the two series was 36 percent of the low.
The composite data for the various geographical regions are as follows:
Eegion
Average price
DiSerenoe
Wholesale
Retail
Amount
Percent
I. New Eneland
$80.79
79.20
79.20
87.00
86.09
86.17
94.78
102r82
95.53
$110.62
106. 67
110. 18
113.66
121. 36
122.99
131. 74
133. 08
127.52
$29.83
27.47
30.98
26.66
35. 27
36.82
36.96
30.26
31.99
36.0
II. Middle Atlantic
34.7
III. East North Central .-.
39.1
IV. West North Central
27.5
V. South Atlantic .-. ..
41.0
VI. East South Central
42.7
VII. West South Central
39.0
VIII. Rocky Mountain :
29.4
IX. Pacific- -..-.
33.5
United States average
87.95
119. 76
31.80
36.0
The average difference between wholesale and retail prices is, of
course, nojt an accurate measurement of the spread for the individual
cities. It is, however, roughly indicative of the geographical variation
and the lack of uniformity in prices and spreads between areas.
Price Trends. . (See chart XXIV and tables 200 to 209.)
AMiolesale prices have been fairly steady for all companies in all
regions, as shown by the indexes of the Bureau of Labor Statistics in
which average prices for July-September 1939 are used as a basis for
comparison. In 1935 the price index was 4 percent lower than in 1939.
There was little change for about 7 months, when there was a rise of
approximately 4 percent. The price again held steady, this time for
10 months, when a further rise of about 7 percent occurred. In Sep-
tember 1937 another 5-percent increase was recorded.^ This last rise
was of temporary duration, lasting only 2 months, after which prices
fell sharply to the low for the period — to approximately 90 percent
of the 1939 levels. After 5 months a rise of 5 percent occurred, and
in 2 months more a second rise to the base period level, which was
maintained until September 1939. With minor exceptions, this trend
was followed in all regions.
Apparently prices for heating boilers are determined seasonally,
that is, prices are fixed at the beginning of the order period, in the late
spring or early summer, and are then maintained until the next year's
orders are due.
The retail price trend, to a considerable extent, follows the fluctua-
tions in wholesale prices. The tuning of the changes is approximately
the same, but the magnitude of the movement is less than the swings
in wholesale prices. The trends of retail prices in the various regions
will be discussed in the following paragraphs.
At retail the price trend by regions shows considerable variation.
(See chart XXIV.) In region I, New England, the price level in 1935
was 102.6 percent of the July-September 1939 average and continued
at that level until June 1937. At that time the prices were. raised by
324
CONCENTRATION OF ECONOMIC POWEIl
over 4 percent, and the index moved up to 106.9, where it remained
unti] April 1938. A sHght drop in April and May and a large decline
in Jmie brought typical prices down again to about the 1935 level
Chabt XXIV
HEATING BOILERS
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 = 100
UNITED STATES - W«igtit«d Av«fog« Prti
■ n '
/
™J— H
! 1
^™^r
1
1 i
REGION I - NEW ENGLAND
REGION H
-MIDDLE ATLANTIC
fl
I
/
1
/
1 I ^».«
L Uoma) '
WHQllMLt—
1
1/
1
REGION m- EAST NORTH CENTRAL
fi
^^^
-JA
1 1-
motctALi
-J" .
— ^1
J
120
1 10
REGION
JT- WEST NORTH CENTRAL
n
1
j
100
/
i vi
\r
1
REGION I - SOUTH ATLANTIC
1 i i '
] ^WMOLESALt
=r
1 1
1 '"'
: rf
' i
REGION
21 -
EAST SOUTH CENTRAL
1 1 i
' '
^»EI.,L,«».)
' 1 '
mn
ESILC^
/~
1
REGION 2tr - WEST SOUTH CENTRAL
' ! ! !
f
^ /
,Ho.c».e i 1
1 .:
, /
/
■CTAIL
J \ '■ ■
i !
1 j
REGION Sm
- ROCKY MOUNTAIN
1
I- ' 1
«ET»IL
r '1
^ ! \r
1 i
1 '
WHOLESALE
REGION
TC - PACIFIC
r=
-r
-J'
"^-HETAIL
^
WHOL
"'"^ll/
I93S 1936 1937 1936 1939 1940 1941
1935 1936 1937 1938 l<>39 1940 1941
IITEO ST«TES euHEAU Of LABOB STATISTICS
(index 102.3), where they remained until August 1939. The index
again dropped by 3.5 percent to a point slightly under the average for
July-September 1939 (index 98.8).
In some measure retail prices follow the wholesale pattern but, as is
common in many markets, they lag somewhat behind the wholesale
CONCENTRATION OP ECONOMIC POWER
325
changes. Retail prices in the New England area were little affected
by the drop in wholesale prices in November 1937, and they also failed
to show the rise from March to Jmie 1938.
In the East North Central region, retail and wholesale prices cor-
relate very closely, rise paralleling rise and drop following drop.
In region IV, the West North Central, price rises have been closely
timed, but when the wholesale price dropped the retail followed only
after a considerable interval, and then declined 6 percent, while the
wholesale price had fallen 23 percent and recovered 11 percent.
In the South Atlantic region retail prices followed wholesale in
direction, but with very much less movement, either up or down.
In the East South Central region data are not complete from 1935
to 1939, but in the main it appears that retail prices follow wholesale
from June 1938 on.
The West South Central area shows very Uttle price movement
at retail, the greatest change amounting to about one-half of 1 percent,
despite wholesale price changes.
The Rocky Mountain region shows retail prices following wholesale
markets closely on the rise, but failing to show corresponding- drops.
In the Pacific area wholesale and retail prices are closely coiTelated
with corresponding rises and declines. The one major price drop in
wholesale prices was not followed by a cut in retail prices for 5 months.
Table 199. — Heating boilers
[Typical wholesale and retail prices for selected cities, September 1939]
Prices
Region and city
Prices
Region and city
Whole-
sale
Retail
Whole-
sale
Retail
REGION 1. NEW ENGLAND
A Port.lfiTifl, Mainp
$81.61
82.81
82.69
79.20
79.20
79.20
79.20
79.20
79.20
79.20
79.20
79.20
79.20
82.21
88.47
87.27
85.22
91.82
79.20
79.20
82.69
81.61
$113.00
115.00
107.00
105.00
110. 70
113.00
102.00
105.00
113.00
101. 70
113.00
113.00
113.00
102.83
108.00
108.33
119. 75
129.38
132. 05
113.00
115.00
113.00
REGION V. SOUTH ATLANTIC— COD.
F. Charlotte, N. C
$87. 84
89. 52
91.48
97.14
79.20
89.55
89.76
88.08
94.82
98.70
97.86
94.44
108.10
97.48
91.24
107.44
100.48
109.72
105.28
91.24
96.66
98.70
$119.75
B. Manchester, N. H
G. Charleston, S. C .-.
120. 5fi
C. Burlington, Vt
H. Atlanta, Ua...
127.00
D. Boston, Mass
I. Miami, Fla
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky
130.50
E. Providence, R. I
F. Hartford, Conn
REGION n. MIDDLE ATLANTIC
113.00
B. Memphis, Tenn
123.52
A. New York, N. Y
D. Jackson, Miss
132.44
B. Trenton, N. J
REGION VIT. WEST SOUTH CENTRAL
A. Little Rock, Ark
C. Philadelphia, Pa
REGION m. EAST NORTH CENTRAL
127. 30
B. Oklahoma City, Okla
131.20
A. Cleveland, Ohio -
C. Austin, Tex
140. 70
B. Detroit, Mich .
D. Houston, Tex
134.00
C . Tndianfip<^lis, Tr"! ,
E. New Orleans, La
REGION Vin. ROCKY MOUNTAIN
B. Boise, Idaho . ..
125.50
D. Chicago, 111
REGION IV. WEST NORTH CENTRAL
135. 95
A. Minnpapoli<i, Minn ,
C. Cheyenne, Wyo ..-
130.00
B. Fareo. N. Dak ...
D. Denver, Colo .
112.81
D. DesMoines, Iowa.
E. Salt Lake City, Utah
F. Heno, Nev
G. Phoenix, Ariz
U. Albuquerque, N. Mex
REGION II. PACinC
A. Seattle, Wash
127.00
E. Omaha, Nebr _
138.00
F. Wichita, Kans.,. .
141.00
REGION V. SOUTH ATLANTIC
A. Wilmington, Del
146. 81
B. Baltimore, Md
127.00
D. Charleston, W. Va .
B. Portland, Oreg
127.00
E. Richmond, Va
C. Los Angeles, Calif..
128.55
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, appro.:iniately 380 square feet installed steam radiation;
each.
Wholesale: Manuf!";lurer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
326
CONCENTRATION OF ECONOMIC POWER
Table 200, — Heating boilert
COMPOSITE: UNITED STATES AVERAOK
(Wholesale and retail price indexes— July-September 1939=" 100.0]
Year and month
1935
January
February
March
April
May
Juno
July
August
September
October
November
December
1936
January
February
March-
April
May
June
July.
August
September
October
November
December
1937
January.-
February..,..-
March
April
May
Index
Whole-
sale
Retail
96.1
100.1
96
100.1
96
100.1
96
100.1
96
100.1
96
100.1
96
100.4
99
9
101.3
99
9
101.3
99
9
101.3
99
9
101.3
99
9
101.3
99.9
101.3
99.9
101.3
99.9
101.3
99.9
101.3
99.9
101.3
106.7
103.8
106.7
103.8
106.7
103.8
106.7
103.8
106.7
103.7
106.7
103.7
106.7
103.7
106. T
103.8
106.7
103.7
106.7
103.7
106.7
103.7
106
7
103.7
Year and month
1937— Continued
June
July...
August .:. _
September
October
November..
December
1938
January
February
March ^
April
May
June
July..
August-.
September
October
November
December
1939
January
February
March
AprU
May
June
July..
August-.
September
Index
Whole-
sale
106.7
106.7
106.7
111.4
111.4
90.3
90.3
90.3
90.3
90.3
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
103.9
103.9
103.9
106.0
99.9
98.8
98.8
9S.8
98.8
98.7
97.5
97.6
100.0
100.0
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.9
100.1
99.9
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, approximately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor' delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 201. — Heating boilers
REGION I. NEW ENGLAND
[Wholesale and retail price indexeo— Jaly-September 1830— lOC.O]
327
Year and month
1935
January
February
March
April
May
June
July
AugTlSt
September
October....
November
December.
1936
January
February
March
April.
May
June
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
95.
95.
95.
95.
95.
95.
95.
100.
100.
100.
100.
100.
100.0
100.0
100.0
100.0
100.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
Retail
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January..
February
March
April
May
June.
July....
August...
September
October
November
December
1939
January
February
March
AprjJ
May
June...
July
Aueust
September
Index
Whole-
sale
107.0
107.0
107.0
112.0
112.0
89.9
89.9
89.9
89.9
89.9
95.0
95.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.9
106.9
106.9
106.9
106.9
106.9
106.9
106.0
106.9
106.9
106.1
106.1
102.3
102.3
102.3
102.3
102.3
102.3
102.3
102.3
102.3
102 3
102.3
102.3
102.3
102.3
Wi.f
98.8
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, approximately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's li.st with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
328
CONCENTRATION OF ECONOMIC POWER
Table 202. — Heating boilers
REGION n. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January .-
February
March
April
May .._-..
June
July
.\ugust
September -.
October
November
December
1937
January
February
March
April...
May
Index
Whole-
sale
96.
96.
9a
96.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
107.
107.
107.
107.
107.
107.
107.
107.
107.
107.
107.
107.
Retail
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February ,
March
.\pril_.
May
June.
July
August
September
October
November
December
1939
January
February ^
March
April
May
June -.-
July
August
September
Index
Whole-
sale
107.
107.
107.
112.
112.
89.
95.
95.
100.
lOO.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
ion.
100.
Retail
100.0
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, approximately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's list with discounts, m.iDufacturer to jobiier, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delive. 3d to job site, city.
CONCKNTKATION OF lOCONOMlC POWER
329
Table 203. — Healing boilers
REGION III.— EAST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June - -.
July
August
September
October
November
December -..
1936
January
February
March..
April.-
May
June.
July.
August
September
October
November.
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
96.0
96.0
96.0
96.0
96.0
96.0
96.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
107.1
106.2
Year and month
1937— Continued
June...
July
August--
September
October
November
December
1938
January
February...
March
April
May
June
July
August...
September
October
November
December
1939
January
February ...
March
Aprii-.
May
June..
July.
August
September
Index
Whole-
sale
107.1
107.1
107.1
112.1
112.1
89.9
89.9
89.9
89.9
89.9
95.0
95.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
106.2
106.2
106.2
111.5
89.4
89.4
89.4
89.4
89.4
89.4
94.7
94.7
100.0
100.0
100.0
100.0
lUO.O
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, approximately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
330
CONCENTKATION OF lOCONOMlC POWEJt
Table 204. — Heating boilers
REGION rv. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September
October
November
December
1936
January
February
March
April
May.-
June
July..
August
September
October
November
December
1937
January
February
March
April....
May..
Index
Whole-
sale
Retail
96.0
96.0
90.0
96.0
96.0
96.0
96.0
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
99.8
99.9
106. C
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
106.6
106.7
Year and month
1937— Continued
June
July
.August
September
October
November
December...
January
February...
March
April
May.
June
July
jVugust
September.
October
November.
December..
1938
Index
\Vhole-
sale
106. 6
106.6
105.6
111.4
111.4
90.4
90.4
90.4
90.4
90.4
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1939
January 100.0
February _ 100.0
March 100.0
.A.pril - . . 100.0
May , _ 100.0
June 100.0
July 100.0
August 100.0
September 100.0
Retail
106.7
106.1
106. ■;
106. ■;
106. ",
106. /
106.7
106.7
106.7
106.7
106.3
106.3
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100.8
100. b
100 8
lfX).8
100.8
100.8
98.5
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, appro.ximately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's list with discounts, manufactiucr to jobber, f. o. b. cars destination.
RetaU: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 205. — Heating boilers
REGION V. SOUTH ATLANTIC
1 Wholesale and retail price indexes— July-September 1939=100.0]
331
Year and month
1935
January..
February
March
April
May..
June
July
Augast
September
October
November
December
1936
January
February
March
.\pril
May
June
July
August...
September
October
November
December
1937
January
February
March
April.
May
Index
Whole-
sale
Retail
96.1
99.1
96.1
99.1
96.1
99.1
%. 1
99.1
96.1
99.1
96.1
99.1
96.1
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
100.0
99.1
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
106.7
100.7
Year and month
1937— Continued
June
July
August
September..
October ..i
November.
December
January
February...
March
April
May
June
July
August
September.
October
November.
December..
1938
1939
January ...;. 100 0
February 100.0
March 100.0
April. 100.0
May 100.0
June I 100.0
July ...' 100.0
August i 100.0
September I 100.0
Index
Whole-
sale
106.7
106.7
106.7
111.4
111.4
90.4
90.4
90.4
90.4
90.4
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.7
100.7
100.7
100.7
100.7
97.0
97.0
97.0
97.0
97.0
96.7
96.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed
standardfittings, including brush and firing tools, approximately 380 square feet installed steam radiation
each.
Wholesale: Manufacturer's list with discoimts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job ^ite, city.
275«52 — 41— No. 33
332
CONCEN'I'KA'rioX OF ECONOMIC I'OWER
Tarlk 200. JIi(ili)i.(] hnilrm
REOION VI. KAST SOUTH CENTRAL
fWholesale and retail price indexes— July-September 1939=100.0]
Year and niontli
January
February...
March
April.
May
June
July
August
September.
October
November.
December..
1935
January
February.-.
March.
April-
May
June
July
August
September.
October
November-
December..
1936
1937
Index
Whole-
sale
99.
99.
99.
99.
99.
ion.
100.
100.
106.
106.
106.
106.
January 106. 5
February 106.5
March--- -.. , 106.5
AprU - 106.5
May 106.5
Retail
"b'enr and month
1937— Continued
June
July.. -
August
September
October
November-
December- -.
1938
January -
February
March
April
May -
June - .--
July
August
September
October
November - . -
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
106.
106.
106.
111.
111.
90.
90.
90.
90.
90.
95.
95.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
I'OO.
100.
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketod,
standard fittings, including bru.sh and firing tools, approximately 380 square feet installed steam radiation;
sach.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. h. cars destination.
Retail: Distributor to plumbing contractor, delivered to job .site, city.
CONCENTRATION OF ECONOMIC POWER
333
Table 207. — Heating boilers
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Index
Year and month
Index
Year and month
Whole-
sale
Retail
Whole-
sale
Retail
1935
January
96.5
96.5
96.5
96.5
96.5
96.5
96.5
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
105.7
99.8
1937— Continued
June
105.7
105.7
105.7
109.9
109.9
91.6
91.6
91,6
91.6
91.6
95.9
95.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. jO
100.0
100.0
100.0
100.0
99.8
February
99
99
99
99
99
99
99
99
99
99
99
8
8
8
8
8
8
8
8
8
8
8
July...
99.8
March
August
99.8
April 1.
September.. . .
100.3
May.-
October
100.3
June
November
100.3
July....
December
100.3
Aupust . ..
1938
January
September
October
100.3
November
February
100.3
December
March
100.3
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
April
100.3
1936
May
100.3
January.-
June..
100.3
February
July
100.3
March
August-
100.3
April
September
100.3
May
October
100.3
June... _
November
100.3
July..-
December
100.3
.\ugust
1939
January
September
October
100.3
February .
100.3
December
March
100.3
April
100.3
1937
May
100.3
January
June . . .
100.0
February
July
100. 0
March
August
100.0
April
September
100.0
May
!
Specifications: Boiler, heating, hand fired, for anthracite and bitumifious coal and coke, square jacketed,
standard fittings, including brush and firing tools, approximately 380 square feet installed steam radiation;
^ach.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
334
CONCENTltATION OF ECONOMIC POWER
Table 208. — Heating boilers
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April..
May
June
July..
August
September
October..
November
December
1936
January
February
March
April
Alay
June -
July
August..
September
October
November
December...
1937
January
February..
March
April...
May
Inde.x
Whole-
sale
94.9
94.9
94.9
94.9
94.9
94.9
94.9
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103.9
103. 9
103.9
103.9
103.9
Retail
97.4
97.4
97.4
97.4
97.4
97.4
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
99.9
104.2
104.2
104.2
104.2
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
Year and mouth
1937— Continued
June
July
August
September
October
November
December
1938
January _
February
March
April
May
June
July..-.
August
September. _
October
November
December
1939
January __
February
March
April
May
June
July
-\ugust
September
Index
Whole-
103.9
103.9
103.9
107.0
107.0
90.3
90.3
90.3
90.3
90.3
96.0
96.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.2
103.2
103.2
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.1
100.2
100.2
100.2
99.7
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, appro.\imately 380 square feet installed steam radiation;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTKATION OF ECONOMIC POWER
Table 209. — Heating boilers
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939 = 100.0]
335
Year and month
1935
January
February
March
April.
Maj;
June
July -
August -
September -.
October
November
Dc^mbcr
1936
January
February
March
April
May...
June -
July
August
September
October
November.
December...
1937
January
February.
March
April .-
May
Indes
Whole-
sale
Retail
96. 7
99.2
96.7
99.2
96.7
99.2
96.7
99.2
96.7
99.2
96.7
99.2
96.7
99.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
100.0
102.2
105.7
105.5
105.7
105.5
105.7
105.5
105.7
105.5
105.7
105. 5
105.7
105.5
105.7
105.5
105. 7
105.7
105.7
105.5
105.7
105. 5
105. 7
105.5
105.7
105.5
Year and month
1937— ContiDued
June
July
August
September
October
November
December..
1938
January
February..
March
April
May
June
July
August ,
September
October
November..
December
1939
January
Febiuary...
March
April
May
June
July ..
August.
September
Index
Whole-
sale
105.7
105.7
105.7
109.8
109.8
91.8
91.8
91.
91.
91.
95.
95.
100.
100.
100.
100.
100.
100.
100.
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
105. 5
105.5
105.5
108.1
108.6
107.0
107.0
107.0
107.0
107.0
94.9
95.3
99.6
99.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Boiler, heating, hand fired, for anthracite and bituminous coal and coke, square jacketed,
standard fittings, including brush and firing tools, appro.ximately 380 square feet installed steam radiation,
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
336
CONCENTRATION OF ECONOMIC POWER
RADIATION
Geographical Variation in Prices and Spreads.
The wholesale price of 26-inch large core radiators in January 1935
ranged from 21 to 22 cents per square foot to about 35 cents per square
foot. The low for radiation at wholesale was the period from January
1935 to July 1935 and the peak was from June 1938 to September
1939, with a price range of 26 cents to 40 cents per square foot.
The considerable geographical variation in September 1939 in whole-
sale and retail prices of radiation is shown in chart XXV and table 210
and in the following distribution by cities :
Price
Number of cities
Price
Number of ciiies
Wholesale
Retail
Wholesale
Retail
27 cents
28 cents—
15
3
4
4
4
4
3
1
35 cents
36 cents . . . ..
1
7
3
1
2
1
10
7
3
37 cents ...
3
30 cents
38 cents .
1
2
3
2
32 cents
40 cents
1
33 cents
41 cents
34 cents - . - .
42 cents
1
Although there is a wide variation in both sets of prices, a consider-
able number are concentrated at certain typical levels. Wholesale
prices in 15 cities are 27 cents per square foot and 10 cities have
retail prices of approximately 32 cents per square foot.
The differences between wholesale and retail prices vary widely in
different parts of the country. The smallest spreads on the average
are to be found in the Pacific area. The average wholesale and ^etail
prices in the cities surveyed were 30.2 cents and 34.4 cents, respect-
ively, or a spread of 13.8 percent.
Region
Prices
Differ-
Wholesale
Retail
percent
I. New England . . . -.
$0. 278
.272
.272
.299
.300
.289
.333
.346
.322
$0,324
.305
.320
.345
.337
.340
.376
.387
.349
16.7
II. Middle Atlantic
12.0
III. East North Central .
17.7
IV. West North Central
15.3
V. South Atlantic.
VI. East Soijth Central . -
12.4
17.7
VII. West South Central ....
12.8
VIII. Rocky Mountain _
11.9
IX. Pacific .
8.2
United States average . ....
0.302
0.344
13.8
Price Trends. (See chart XXVI and tables 211 to 220.)
During the past 5 years prices for radiation, both at wholesale and
retail, have shown a steady upward movement with only one dechne
of any consequence. Changes have not been quite the same in
amount in all regions, but they have taken place practically simul-
taneously all over the United States.
rOXrKXTKATIOX OF KCOXOMrC POWER
337
Chart XXV
RADIATION
WHOLESALE AND RETAIL PRICES FOR SELECTED CITIES
SEPTEMBER 1939
RETAIL PRICES
$.48
38
36
34
28
.26
5F • 'TE 9B 9C
• \. \ lA.ZC, JA,
^<3B,3C, 30,
a SA (SB-, SE a 6 A
RETAIL PRICES
■^♦.48
.46
.42
.40
.38
36
.34
.32
.30
28
.26
$.26 .28
30 .32 .34 .36
WHOLESALE PRICES
38 40
U S BUREAU OF LABOR STATISTICS
338 CONCENTUATION OF ECONOMIC POWER
According to the new index numbers computed by the Bureau of
Ijabor Statistics (July to September 1939 = 100.0) wholesale prices re-
mained at the January 1935 level (index 83.0) through July 1935. In
August 1935 they advanced 5 percent. This level was maintained
until June 1936 when a slight increase occurred, followed in July by
another slight rise, amounting to 7 percent in all. The July 1936
price held until Sepitember 1937 when there was a further 5 percent
increase, holding through March 1938. In AprU 1938 the price dropped
3 percent for 2 montt^, then rose 5 percent, at which level it was
maintained until September 1939.
Retail prices follow closely the trend of the wholesale series in most
regions. The variations will be described in the following paragraphs.
RetaU prices for the New England region maintained the January
1935 level until June 1938, at w^ch time they rose 4.5 percent. This
new level was maintained through September 1939. In the Middle
Atlantic region little retail price data are available. However, since
September 1938 the price has remained stable.
In the East North Central region the curve, of the indexes for retail
prices closely parallels the trend of wholesale prices. Both series
moved up about 7 percent from 1936 to 1939. The available indexes
for 1937 to 1939 for the West North Central area show a similar close
relationship between wholesale and retail price trends.
In the South Atlantic States, wholesale price trends were similar
to the other regions. Retail prices, however, were fairly stable,
showing a rise of less than 3 percent over the 5-year period. Even
though the movement was so slight, its timing and general direction
followed the wholesale pattern.
Only fragmentary trend information is available for retail prices in
the East South Central and West South Central areas. There were
no changes recorded from June 1938 through the date of the Bureau of
Labor Statistics' survey, September 1939.
In region VIII, the Rocky Mountain area, only one variation differs
from the usual wholesale pattern. In 1938 the downward movement
in prices shown for this region in April and May is less than 1 percent,
whereas in most of the regions it was from 2 to 3 percent. The
movement, generally, and the date of change, follow the usual pattern.
In this region retail prices show greater movement than in any other
section. The direction of change follows the wholesale market, but
not always with the same timing nor in similar proportions.
Prices on the Pacific coast follow the general trend. In the fall
and winter of 1936 some minor fluctuations occurred in retail prices
but this divergence was temporary and retail prices subsequently
followed wholesale trends.
CONCENTRATION OF ECONOMIC POWER
339
Chart XXVI
RADIATION
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
INDEX UNITED STATES - Wtljhud Av«rog« Prlc«
!
,«ti»i
Lf^^T^
_r
1
!
120
110
100
REGION I
- NEW
ENGLAND
1 1
i
r-
=tf
^IICTAIL
rr-'
90
__rT"
"^•HOIXSAUI
1
REGION n - MIDDLE ATLANTIC
RrrtiL
.
rnxoutti
r
■XT
r—
ut"
REGION m - EAST NORTH CENTRAL
!
1
^
^
•^r
1
REGION lY - WEST NORTH CENTRAL
i 1
i
i kL-...
-
~-
r^r-
i
1 i
-j^..^ 1
90
I99S 1936 1937 1936 1939 1940 1941
;iTtO STATCS BUREAU Of LABO" STATISTICS
REGION X - SOUTH ATLANTIC
REGION
za
EAST SOUTH CENTRAL
i
1- -i
1
— T
^^-
-J
1
REGION "SR - WEST SOUTH CENTRAL
\
r-
k«..u,~
1
nM
-r
i
REGION Sm
- ROCKY MOUNTAIN
1 1 rT-
\
^ 1 *^HCTA
—^ 1 1
^
REGION
IX
PACIFIC
I
i
!
1 1
1
-".
"i "T"^
=^
1 1
1933 1936 1937 l»3ft .I9S9 1940 1941
340 CONCENTRATIUN OF ECONOMIC I'OWEH
Table 210. — Radiation
[Typical wholosale and retail prices for selected cities, September 1939]
Region and city
Prices
AV hole-
sale
REGION I. NEW ENGLAND
A. Portland, Maine --
B. Manchester, N. H
C. Burlington, Vt-
D. Boston. Mass
F. Providence, R. I
F. Hartford, Conn
REGION II. MIDDLE ATLANTIC
A. New York, N. Y ,
B. Trenton, N. J
C. Philadelphia, Pa
REGION III. EAST NORTH CENTRAL
A. Cleveland, Ohio
B. Detroit, Mich
C . Indianapolis, Ind . -
D. Chicago, 111.-
REGION IV. WEST NORTH CENTRAL
A. Minneapolis. Minn
B. Fargo, N. Dak
D. Des Moines, Iowa
E. Omaha, Nebr
F. Wichita, Kans
REGION V. SOUTH ATLANTIC
A. Wilmington, Del
B. Baltimore, Md- .
D. Charleston, W Va
.2720
.2870
.2900
.2720
.2720
.2720
.2720
.2720
.2720
.2720
. 2720
.2720
.2720
.2850
.3130
. 2940
.2850
.3200
.2720
.2720
.2980
Retail
.|0. 3200
.3300
. 3201)
. 3300
.3135
.3300
.2900
.3040
.3200
.3200
.3200
.3200
.3200
. 3325
. 3525
. 3384
.3325
.3700
.3040
.3200
.3300
Kcuiou and city
REGION V. SOUTH ATLANTIC— COn.
E. Richmond, Va
F, Charlotte, N. C ..
0. Charleston. S. C.
H. Atlanta, Oa
1. Miami, Fla... ...
REGION VI. EAST SOUTH CENTRAL
A. Louisville, Ky
B. Memphis, Tenn
D. Jackson, Miss
REGION VII. WEST SOUTH CENTRAL
A. Little Rock, Ark
B. Oklahoma City, Okla.
C. Austin, Tex
D. Houston, Tex
E. New Orleans, La
REGION VIH. ROCKY MOUNTAIN
B. Boise, Idaho
C. Cheyenne, Wyo.
D. Denver. Colo....
F. Reno, Nev.
O. Phoenix, Ariz ..
REGION IX. PACIFIC
A. Seattle, Wash
B. Portland, Oree..
C. Los Angeles, Calif
Prices
Whole-
sale
$0. •.?720
.3050
. 3260
. 3120
.3400
.2720
. 2ct20
.3020
.3130
. 3280
. 3570
. 3520
.3170
. 3f)80
.3390
.3070
.3240
. 3910
. .3020
. 3.300
.3350
Retail
.3200
. 3500
.3443
.3500
. 3750
..3200
. 343fi
. 35.57
. 3(i20
.3611
. 4050
. .3990
. 3526
. 370O
.3900
. 3650
. ,3800
.4300
.3460
.3500
.3500
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF p]CONOMIC I'OWER
Table 211. — Radialiovr
COMPOSITE UNITED STATES AVERAOE
[Wholesale and retail price indexes— Jnly-Septiember 1939-= 100.0]
341
Year and month
1935
January
February
March
April.
May
June
July -
August
September
October.
November
December
1936
January
February.
March
April
May
June -- .-
July
August
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
Retail
83.0
90 4
83.0
90.4
83.0
90.4
83.0
90.4
83.0
90.4
83.0
90.7
83.0
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
87.6
90.7
93.8
94.8
93.9
94.8
93.9
94.8
93.9
95.0
93.9
95.0
93.9
95.2
93.9
95.2
93.9
95.3
93.9
95.1
93.9
95.2
93.9
95.2
93.9
95.8
Year and month
1937— Continued
June
July
August
September......
October
November. _
December
1938
January
February
March _
April
May
June
July
August
September
October
November
December
1939
January
February
March
April.. _
May..
June
July
August
September
Index
Whole-
sale
93.9
93.9
93.9
98.4
98.4
98.4
98.4
98.4
98.4
98.4
95.5
95.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
97.5
97. .')
99.9
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 2fi inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
342
CONCENTKATION OF ECONOMIC POWER
Table 212. --Radiation
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February.-- _
March ..-
April
May
June
July.-. ..--
August
September ---
October
November
December
1936
January
February.
March
April
May
June
July
August---
September
October
November
December
1937
January
February
March...
April
May
Index
Whole-
sale
93.8
93.8
93.8
93.8
93.8
Betail
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
93.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
Year and month
1937— Continued
June
July
August---
September-
October
November
December.
1938
January
February
March
April
May '.
June
July
August...
September...
October
November
December
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
93.8
93.8
93.8
98.5
98.5
98.5
98.5
98.5
98.5
98.5
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Eetail
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
96.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination^
Retail: Distributor to plumbing contractor, delivered tp job site, city.
CONCENTRATION OF ECONOMIC POWER
343
Table 213. — Radiation
KEQION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0)
Year and month
1935
January
February
March
April ---
May
June
July
August
September
October
November...
December
1936
January
February
March...
April
May
June
July
August
September
October
November
December
1937
January
February
March.
April
May
Index
Whole-
sale
Retail
Year and month
1937— Continued
June
July
August
September
October
November
December...
1938
January
February
March...
April-
May
June
July
August
September
October
November.
December
1939
January
February
March
ApriV.
May
June
July
August..
September
Index
Whole-
93.8
93.8
93.8
98.5
98.5
98.5
98.5
98.5
98.5
98.6
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per .square foot.
Wholesale: Manufacturer's list with discoimts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivcrod to job site, city.
344
CONCENTRATION OF ECONOMIC POWER
Table 214. — Radiation
REGION III. EAST NORTH CENTRAL
[Wholesale and retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March
April -
May
June.—
July
August
September
October
November
December
1936
January
February
March-.-
April
May
June
July .-.- -
August---
September
October
November
December
1937
January.-
February
March
April...
May
Index
Whole-
sale
Retail
82.7
82.7
82.7
82.7
82.7
82.7
82.7
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.6
87.5
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
93.8
Year and month
1937— Continued
June
July .-
August
September
October
November
December
1938
January
February.
March
April
May
June
July
August
September.
October
November...
December
1939
January
February
March
April.
May
June
July
August ,
September --
Index
Whole-
sale
93.8
93.8
93.8
98.5
98.6
08.5
98.5
98.5
98.5
98.5
95.2
95.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
93.8
93.8
93. -8
98.4
98.4
98.4
98.4
98.4
98.4
98.4
95.3
95.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, rast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discoimts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, dolivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 215. — Radiation
REGION IV. WEST NORTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
345
Year mill mouth
1935
Jauuary
February -..-.
March
April
May
June
July
August
September
October
November
December
1936
January..
February
March
April
May
June
July .-
Au.eust
September
October
November
December
1937
January
February
March _
April
May
Index
Whole-
sale
Retail
Year and month
1937— Continued
June
July
August
September
October.
November. _
December
1938
January
Februarj'
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
ApriV
May
June
July -
August.
September
Index
Whole-
sale
93.6
93.6
93.6
97.9
97.9
97.9
97.9
97.9
97.9
97.9
95. r,
95.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
98.8
98.8
98.8
9r,. 2
96.2
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
99.8
100.3
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
346
CONCENTRATION OF ECONOMIC POWER
Table 216. — Radiation
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February-
March
April..
May
June..
July
August
September.
October
November,
December.
Januari'
February.--
Marcb
April
May
June
July
August
September.
October
November.
December.
January..
February.
March
AprU
May
193C
1937
Index
Whole-
sale
83.
83.
83.
83.
83.
83.
83.
88.3
88.3
88.3
88.3
88.3
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
94.1
Retail
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
97.2
98.7
98.7
98.7
98.7
98.7
98.7
Year and month
1937— Continued
June
July..
August
September
October.
November
December
1938
January
February
March..
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June...
July
August
September
Index
Whole-
sale
94.1
94.1
94.1
98.6
98.6
98.6
95.5
95.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
99.
99.8
99.8
99.5
99.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's Ust with discounts, manufacturer to jobber, f. o. b., cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
347
Table 217. — Radiahon
REQIONTVI. EAST SOUTH CENTRAL
[Wholesale and retail price Indexes— July-S>sptembcr 1939=100.0)
Year and month
^^}^- Retail
1935
January.
February
March
April
May
June -
July
August ,
September
October...
November
December
1936
January
February
March ,
April
May.
June
July
August
September
October
November.
December
1937
January
February
March
AprU
May
Index
Year and month
1937— Continued
June
July.....
August
September
October
November
December
1938
January
February
March
April
May..
June
July
August
September
October
November
December...
1939
January
February
March..
April
May.
June.-
July
August
September
Index
Whole-
sale
98.6
Retail
98.7
98.7
98.7
95.4
95.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Speciflcation: Radiation cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
348
CONCKNTKATION OF ECONOMIC POWER
Table 218. — Radiation
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— Juiy-Septembcr 1939 = 100.0]
Year and month
1935
January
February
March
April ...
May_- -.
June
July
August
September
October.--
November
December
1936
January
February.- -
March.- -
April.- ---
May
June
July
August
September
October
November
December.
1937
January
February
Mwch
AprU
May.-
Index
Whole-
sale
Retail
Year and mouth
1937— Continued
June
July
August -.
September
October
November
December
1938
January
February
March
April -.
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July...
Augast
September
Index
Whole-
sale
98.
98.
9f..
9fi.
100.
100.
loo;
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
100.
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
349
Table 219. — Radiation
KKOION VIII, ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April-
May
June
July --
August
September
October
November
December ..-
1936
January
February
March
April - -.-
May
June
July
August -
September
October
November
December
1937
January
February
March
April .--
May
Index
Whole-
sale
Retail
83.8
82.0
83.8
82.0
83.8
82.0
83.8
82.0
83.8
82.0
83.8
84.0
83.8
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
87.6
84.0
94.0
86.7
94.0
86.7
94.0
86.7
94.0
86.7
94.0
86.7
94.0
86.7
94.0
86.7
94.0
87.7
94.0
87.7
94.0
87.7
94.0
88.5
94.0
96.7
Year and month
1937— Continued
June
July - -.
August
September...
October
November
December
1938
January
February
March
April
May.
June
July.
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September..
Index
94.0
94.0
94.0
97.7
97.7
97.7
97.7
97.7
97.7
97.7
97.3
97.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
96.7
96.7
97.7
97.7
97.7
97.7
97.7
98.3
98.3
98.3
98.3
98.9
98.9
98.9
98.9
99.0
99.0
99.0
99.0
99.3
99.3
99.3
99.3
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
350
CONCENTllATION OF ECONOMIC POWElt
Table 220. — Radiation
REGION IX. PACIFIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
Whole-
sale
1935
January.
February
March
April
May
June
July.
August --
September
October
November
December
1936
January
February
March --.
April -
May...
June.:
July
August
September
October.
November..
December
1937
January
February
March
.\pril
May
index
85.8
8.5.8
85.8
85.8
85.8
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
93.7
Retail
85.8
85.8
85.8
85.8
85.8
85.8
85.8
85.8
85.8
85.8
85.8
93.7
93.7
93.7
94.4
94.4
95.2
95.2
95.2
94.4
94.8
94.8
94.8
Year and month
1937— Continued
Juno
July
.\ugust-..
September
October
November
December
1938
January
February
March.
April
May.
June
July...
August
September
October
November
December.. .,
1939
January
February
March
April.
May
June
July
-iUgUSt
September .
Inde.'c
Whole-
sale
93.7
93.7
93.7
97.3
97.3
97.3
97.3
97.3
97.3
97.3
96.1
96.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
■ )0. 0
Retail
94.8
94.8
94.8
98.5
98.5
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Radiation, cast iron, 26 inches high; per square foot.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CHAPTER XX
RANGE BOILERS
DESCRIPTION AND LOCATION OF THE INDUSTRY
The production of range boilers in 1937 totaled 929,000 and was
valued at $6,000,000, compared with 850,000 produced in 1935 with
a valuation of $5,000,000, an increase of 9 percent in number and 20
percent in value during this 2-year period. These figures do not
include tanks and shells for water, copper and nonferrous alloy range
boilers, or water heaters.'
Range boilers are included by the census in "Plumbers' supplies,
other than pipe and vitreous-china sanitary ware industry," and in-
formation on leading centers of production and on the distribution of
sales is not available separately. (See page 365 for data as to plumbers'
supplies.) In general, however, range boilers are produced in the
same areas and distributed through the same channels as other
plumbers' supplies.
Concentration. '
Concentration of production is less in this field than for any other
plumbing and heating product; only 42 percent of the total is manu-
factured by the four leading firms. This may be partially explained
by the fact that many of the larger producers of plumbing equipment
act only as distributors of range boilers produced by smaller specialty
plants.
Products of the Industry.
The industry produces various types of range boilers, storage tanks,
water heater coils, and expansion tanks. Range boilers are made in
capacities of 18 to 192 gallons and may be of galvanized iron or steel,
copper, or nonferrous alloys. Some are now made of Monel metal.
The galvanized steel type is, however, the most common; about
929,000 were i)roduced in 1937 as against 40,000 of all other types.
Specifications.
For pricing purposes, a standard 30-gallon galvanized steel range
boiler, electric-welded and guaranteed for 85 pounds working pressure,
was selected as representative. The price data at wholesale are per
boiler, manufacturers' list with discounts, manufacturer to jobber,
f. o. b. cars, destination. Retail price data are per boiler, distributor
to plumbing contractor, delivered to job site, city.
PRICE STRUCTURE
Zone Freight System.
Range boilers are sold on an f. o. b. shipping point basis subject to
freight allowances which are determined, for the most part, by a
' Census of Manufactures 1937: "Plumbers' supplies, not including pipe or vitreous-china sanitary ware,"
table 4, pp. 955-6.
351
352 CONCENTRATION OF ECONOMIC POWER
zoning system. In the base zone — usually termed "Zone A"- full
freight is allowed, and varying schemes of freight equalization are
provided for points outside zone A.
For a representative company, zone A includes all points east of a
line running along the Mississippi River as far north as St. Louis,
and then along the Missouri River including destinations on both
sides of the river, to Sioux City, Iowa, and then north along the
Iowa-Minnesota boundary, but including Sioux Falls, S. Dak., and
Fargo and Grand Forks, N. Dak. Zone B comprises points west of
zone A, except the Pacific Coast States; zone C includes Washington,
Oregon, and California. Other companies follow similar zoning
systems.
In zone A full freight is allowed on shipments of six or more pieces
for jobbers' stocks but no freight is allowed on direct shipments. In
zone B, on rail shipments of six or more pieces for jobbers' stocks,
freight is equalized with the rate from the zone A boundary, with
Memphis, Tenn., as the most southerly equalizing point. On similar
shipments via boat and rail, freight is allowed to Atlantic seaports
or equalized with rates f. o. b. New Orleans. No freight is allowed
on direct shipments.
In zone C (Washington, Oregon, and California) freight is equalized
with the zone A boundary on carlot rail shipments only. No freight
s allowed on less-than-carlot rail shipments. On boat and rail
shipments of six or more pieces freight is allowed to Atlantic or Gulf
seaports within the zone A boundary.
List Prices and Discounts.
Prices are quoted by list or net and producers sell to wholesalers or
jobbers only. Some companies quote the hst price and grant a dis-
count— usually 5 percent on sLx or more items. Other companies
quote net carlot and less-than-carlot list prices with differentials —
usually 5 to 6 percent less in carlot quantities, while some companies
quote net to jobbers, without any reference to lists or discounts.
The carlot price applies only on a minimum 24,000 pound carlot,
ordered for immediate shipment.
A cash discount of 2 percent is customary in the- industry. One
company allows the cash discount on payments made by the 10th of
the month following shipment, another on payments the 15th of the
month following shipment. The due date, therefore, varies with the
individual company, but the rate of discount is uniform. For most
companies, bills are due net after the discount date and become past
due after 30 days. Interest, usually at 6 percent per annum, is
charged on past due accounts. Prices are quoted subicct to change
without notice.
PRICE LEVELS AND TRENDS
The variations in freight allowances, which have been described
heretofore, result in moderate geographical differences in wholesale
delivered prices. In September 1939, for example, wholesale prices
varied from about $4.60 in zone A cities to a high of approximately
$5.35 in a city in the Rocky Mountain area, a range of about 15
percent. Retail prices varied more widely, from about $5.10 in cities
near a manufacturing plant to about $7.95 in three cities outside the
CUNCKNTitATlON OF ECONOMIC L'OWEU
353
zone A wholesale region, a range of about 60 percent. The dis-
tribution b}'^ cities for both wholesale and retail prices is sliown below:
Tyi)iCal prict
$4.50
$4.75
.115.00
.$5.25
.f5.50
.»5.75
.•fe.oo
$6.25
to .$4.74.
to $4.99.
to $5.24.
to .$5.49.
to $5.74.
to $5.99
to $6.24.
to $6.49
Number of cities
Whole-
sale
Retail
X umber of cities
Typical price
$6.50 to $6.74.
$6.75 to $6.99.
$7.00 to .$7.24.
.$7.25 to $7.49.
$7..50 to .$7.74.
$7.75 to .$7.99,
$8.00 or over.
Whole-
.sale
Retail
Practically all of the manufacturers' prices were between $4.50
and $5 while half of the retail prices were betw^een $5.50 and $6.25.
In general, higher wholesale. prices are accompanied by higher retail
prices, but apparent^ retail prices arc much higher in zones B and C,
relative to wholesale prices.
The highest prices, both at wholesale and retail, were found in the
Rocky Mountain and West South Central regions, that is, in zone B,
and the lowest prices in areas near producing centers in zone A. The
average regional differentials are shown below:
Prices
Difference
Region
Whole-
sale
Retail
Amount
Percent
I. New Enplane!
n. Middle Atlantic .
$4.00
4.60
4. 60
4.65
4.60
4.60
4.80
4.86
$0. 67
6.15
5.37
5.61
6.05
V. 87
7.21
7.33
6.48
$2.07
1.55
.77
.96
1.45
1.27
2.41
2.47
45.0
33.7
m. East North Central
16.7
IV. West North Central . - - -.
20.6
V. South Atlantic
31.5
V'l. East South Central
27.6
VII. West South Central -
50.2
VIH. Rocky Mountain - - .
SO. 8
IX. Pacific
United States average (38 cities)
4.68
6.38
1.70
36.3
The spread between wholesale and retail prices varies greatly
throughout the country. The average difference for the 38 cities m-
cluded in the survey of the range boiler industry was 36.3 percent,
but this figure is not representative of all regions. The margin ranged
from 11 percent in an East North Central city near the producing
area to (io percent in a southwestern city. The regional variation
was from 17 percent in the East North Central region to 51 percent
in the Rocky Mountain region.
Piice Trends— W/iohsale AI(ukei,s.
The Irend of wholesale i)rices from 1935 to dale was similar in all
parts of the country, although the West South Central and Rocky
Mountain regions varied slightlv from the general pattern. (See
chart XXVII and tables 221 to 229.)
These changes are reflected in the Buieau's uidextis based on July
to September 1939=100. In 1935, prices were at a fairly low
level, 86 percent of the late 1939 level in all regions. The price
354 CONCENTRATION OF ECONOMIC POWER
remained steady until August 1936 in all except the Rocky Mountain
area where a very slight rise occurred in August 1935. Between
August 1936 and April 1937 a sharp increase was reflected in an
advance of 40 percent in the United States index. This high level
was maintained until March 1938, when prices dropped 16 percent.
After March 1938 slight changes were reported. Prices held at the
same level from April 1939 to the end of that year.
There are two exceptions to this general course of prices. In the
West South Central area the rise in 1937 was approximately 56 per-
cent, and the decline in 1938 25 percent, while the rise for the Rocky
Mountain region was 74 percent and the decline 33 percent. The
variations may be explained in part by the fact that the cities in these
regions, except New Orleans, are outside the base zone, and prices,
while following the same general pattern, do not show the same rate
of change. These two regions also show a slight upswing in October
1938 but they, too, reach the base period level in April 1939.
Price Trends — Retail Markets.
The trend of retail prices varied considerably from region to region.
Retail prices have not followed wholesale prices except in one or two
regions and then only with considerable lag.
The United States average of prices at retail shows price fluctuations
within a very limited range. In 1935 the Bureau's Nation-wide index
(based on July to September 1939 = 100) was approximately at the
1939 level and remained almost constant until October 1936, when
a series of slight advances began. By January 1938 prices had
increased 4 percent. From February to March 1938 a decline of
3 percent occurred, and from that date until this study was begun,
there were only minor price changes at retail, so far as quoted prices
were concerned.
In those regions for which retail price data are available back to
1935 only 4 show any price movements similar to the wholesale
trends. In the New England region the retail prices followed whole-
sale prices with some degree of similarity but the February 1937
rise in the latter did not occur in retail prices until October and was a
somewhat greater increase than the wholesale. The decline, however,
followed the wholesale trend and after July 1938 there was very little
change.
In the West North Central region an upswing in December 1937
paralleled the wholesale trend but the rise was of short duration and
m March 1938 the retail price had fallen to the low for this region.
It then remained near that level until the end of 1939 with one slight
advance.
In the Rocky Mountain region retail prices fluctuaterd somewhat
more freely than in other parts of the country but within a narrow
range, not exceeding 5 percent. Tliis region, like the New England
and West North Central regions, showed the small typical price rise
in 1937, a drop early in 1938, and a leveUng oft" thereafter.
Price movements in the Pacific area have been minor. From
1935 until the- fall of 1936 the price remained constant. Late in 1936
prices increased on the average about 5 percent; there were minor
fluctuations toward a lower level during 1937, and a drop in 1938
to the level which prevailed tlu-oughout 1939.
CONCENTRATION OF ECONOMIC POWER
355
Chart XXVII
RANGE BOILERS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 ' 100
J
">-J
■^
RCT*
'4
--WHOLES'
1
1
REGION Z-NEW ENGLAND
_i"""
mOLCULC
T
ffl 1
rjiho J
i iJ|
1 /
i
1
130
120
110
100
90
REGION XL
MIDDLE ATLANTIC
J
1
j
hZl
;»iLt
1
/
,7
nia.
j
/
i !
1
1
REGION HI - EAST NORTH CENTRAL
o
1 j I^WHOLCtAtC
r?"" ■ "
1 ^\
\ ^
t
1 i
1 1
90
130
120
REGION
3E-
WEST NORTH
CENTRAL
U-WMOLCSALC
1 10
100
90
/
^
" : r
L.
?^
r
i.Tr7
- / ^
I93S 1936 1937 1936 1939 1940 1941
UNITED STATES Bureau of labor statistics
REGION X
SOUTH ATLANTIC
J 1
1
■^ l|
/ I 1
retail r*— WHOLESALt
1 ■ / 1
1 /
1
1
REGION
31- EAST SOUTH CENTRAL
1 i •
1 ' '
J~
I
1
I
l_«HOLCSALE
/
«,A,
/
/
i
REGION :SK - WEST SOUTH CENTRAL
irt
1 __.
_-«HaL
£>AL(
r
n
H RETAIL
/
i
I
J
REGION
imr
- ROCKY MOUNTAIN
MOLHALI
*
lltTAIl, f
^.^
3-
I
1939 1936 1937 1938 1939 1940 1941
356
CONCENTRATION OF ECONOMIC TOWER
No pricp. f'luiiigo of any consequence occuiiod (hiring tlie 19.'55-30
period in the South Atlantic and West South Central regions. The
chief movement was a very small rise in 1937 and thereafter almost
no movement occurred.
In the Middle Atlantic, East North Central, and East South Central
regions, retail price data are not availahle prior to 1939. Since
January 1939, however, no price changes have been reported.
Table 221. — Range boilers
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May.
June
July
August
Septembe
October
November. - . .
December..
1936
January
February
March
April
May
June
July
August
September
October _
November
December
1937
January
February,.
March
April -
May
Index
Whole-
sale
Eetail
86.2
100.5
86.2
100.4
86.2
100.4
86.2
100.4
86.2
100.4
86.2
100.5
86.2
100. 5
86.2
100.5
86.2
100.5
86.2
100.5
86.2
100.5
86.2
100.5
'86.2
100.6
86.2
100.6
86.2
100.6
86.2
100.4
86.2
100.4
86.2
100.4
86.2
100.4
86.2
100.4
94.8
100.4
94.8
101.4
94.8
101.-4
108.9
101.4
108.9
102.7
108.9
102.fi
108.9
102.6
120.2
102.6
120.2
102.6
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February
March
AprQ
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July--
August-
September
Index
Whole-
sale
Retail
120.2
102. fi
120.2
102.7
120.2
102.7
120.2
102.7
120.2
103.4
120.2
103.4
120.2
103. 7
120.2
104.0
120.2
104.0
101.3
100.9
101.3
100.9
101.3
100. 9
101.3
100.9
101.3
100.2
101.3
99.9
101.3
100.2
101.5
100.2
101. 5
100.2
101.5
100.2
101.5
100.0
101. 5
100.2
101. 5
100.0
100.0
100.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discoimts, manufacturer to jobber, f. o. h. cars destination.
Rptail: Distributor to phimbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
357
Table 222. — Range boilers
REGION I. NEW ENGLAND
[Wholesale and retail price indexes— July-September 1939=100.0]
Yejir and month
January
February-
March
April
May
June -.
July
August
September-
October
November.
December..
January
February...
March
April
May
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whole-
sale
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
94.8
94.8
94.8
108.9
108.
108.
108.
117.
117.
Retnil
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
92.8
100.9
100.9
100.9
100.9
100.9
100.9
100.9
100.9
Year and month
1937— Continued
June
July -.
August.
September
October
November..
December _
1938
January
February..
March
April
May
June
July
August
September
October
November
December
1939
January _
February,
March
April _.
May
June
July
August
September
Whole
sale
Index
Retail
117.8
117.8
117.8
117.8
117.8
117.8
117.8
117.8
117.8
101.3
101.3
101.3
101. 3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
100.0
100.0
100.0
100.0
100.0
100.0
100.9
100.9
100.9
100.9
121.6
121.6
121.6
121.6
121.6
105. 8
105.8
105.8
105. 8
101.6
101.6
101.6
101.6
101.6
101.6
101.6
108.0
99.7
99.7
99.7
99.7
99.7
99.7
100.4
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
358
CONCENTRATION OF ECONOMIC POWER
Table 223. — Range boilers
REGION II. MIDDLE ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
May
June
July
August .-
September
October
November
December...
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January
February
March.-
April
May
June
July
Index
Whole-
sale
86.
86.
86.
86.
86.
94.
94.
94.
108.
108.
108.
108.
117.
117.
117.
117.
Retail
Year and month
1937— Continued
August
September
October.
November
December
1938
January.
February
March
April..
May
June
July
August
September
October
November
December _ . .
1939
January _
February
March
April
May..
June
July. .-
August. _.
September
Inde.x
Whole-
sale
117.
117.
117.
117.
117.
117.
117.
101.
101.
101.
101.
101.
101.
101.
101.
101.
101.
101.
101.
101.
100.
100.
100.
300.
100.
100.
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressur;
each.
Whole.sale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. ears destination.
Retail: Distributor to plumbing contractor, delivered to job site. city.
CONCENTRATION OF ECONOMIC POWER
Table 224. — Range boilers
REGION III. EAST NORTH CENTRAL
(Wholesale and retail price Indexes— July-September 1939=100.0]
359
Index
Year and month
Index
Year and month
Whole-
sale
Retail
Whole-
sale
Retail
1935
May
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
94.8
94.8
94.8
108.9
108.9
108.9
108.9
117.8
117.8
117.8
117.8
..:::::.
1937— Cnntinued
August . .
117.8
117.8
117.8
117.8
117.8
117.8
117.8
101.3
101.3
101.3
101.3
101.3
101.3
101.3
1C1.3
101.3
101.3
101.3
101.3
101.3
100.0
100.0
100.0
100.0
100.0
100.0
June
July
October
August
November .
September
December. . .. .
October
1938
January
November
December
February...
1936
March
January
April
February .-.
May
March
June
April
July
May
August... .
June
September .
100.0
July
October..
100.0
August
November...
100.0
September .. . . .
December
100.0
October
1939
January
November
December
100.0
February..
100.0
1937
March
100.0
January
April
100.0
May .... . . ■
100.0
March
June . .
100.0
April
July*.
100.0
May
August
100.0
June
September .-. . . . .
100.0
July
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, deliver'"! to job site, city.
360
CONCENTRATION OF ECONOMIC POWER
Table 225. — Range boilers
REGION IV. WEST NORTH CENTRAL
[Wholesale and retaO price indexes— July-September 1939=100.0]
Year and month
1935
May
June
July. -
Aupust
September
October
November
December
1936
January
February.-
March
April
May
June
July
August
September. _
October
November
December
1937
January
February
March
April
May
June
July
Index
Whole-
sale
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
94.8
94.8
94.8
108.9
108.9
108.9
108.
117
117
117
117,
Retail
108.1
108.1
108.1
108.1
108.1
Year and month
1937— Continued
August
September
October
November
December
1938
January
February
March
April
May
June
July.-
August
September..
October
November
December
1939
January _
February
March
AprQ
May
June
July...
August
September
Index
Whole-
sale
117.
117.
117.
117.
117.
117.8
117.8
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
100.0
100.0
100.0
100.0
100.0
100.0
Retail
108.1
108.1
108.1
108.1
108.1
112.8
112.8
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.5
98.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
M'^holesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
361
TABiiE 226. — Range boilers
REGION V. SOUTH ATLANTIC
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July-.
August
September.
October
November-
December.
January
February.-.
March
April
May
June
July
August
September.
October
November.
December..
January..
February.
March
April
May
1935
1936
1937
Index
Whble-
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
86.1
94.8
94.8
94.8
108.9
108.9
108.9
117.8
117.8
Retail
99.8
99.8
101.3
101.3
Year and month
1937— Continued
June
July
August-
September
October
November.
December
1938
January
February
March- -.
April
May
Jime
July
August
September
October
November
December
1939
January
February ■...
March
Aprik
May
June
July
August
September.
Index
Whole-
sale
117.8
117.8
117.8
117.8
117.8
117.8
117.8
117.8
117.8
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101. 3
100.0
100.0
100.0
100.0
100.0
100.0
Retail
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
100.0
100.6
100.6
100.6
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
362
GONCENTIIATION OF ECONOMIC POWER
Table 227. — Range boilers
REGION VI. EAST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=»100.0]
Year and month
1935
May
June
July
August
September
October
November
December
1936
January
February
March
April
May.
June
July... -.
August
September.
October
November
December
1937
January
February
March...
April.
May.
June
July...
Index
Whole-
sale
86.
86.
86.
86.
86.
86.
86.
86.
94.
94.
94.
108.
108.
108.
108,
117.
11
11
117,
.8
Retail
Year and month
1937— Continued
August
September
October
November
December
1938
January
February
March
April .-_
May
June...
July.
August
September
October
Novembor. _
1 )('cembi r
1939
January
February
March
April
May
June
July
August
September.
Index
Whole-
sale
117.
117.
117.
117.
117.
117.8
117.8
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.3
100.0
100.0
100.0
100.0
100.0
100.0
Retail
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Whole.sale: Manufacturer's list with discoimts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to inb site. city.
CONCENTRATION OF ECONOMIC POWEK
363
Table 228. — Range boilers
REGION VII. WEST SOUTH CENTRAL
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
Niay
June
July
August
September.
October
November -
December. .
1935
January
February...
March
April.
May
June
July
August
September.
October
November.
December. .
1936
January. .
February.
March
April
May
1937
Index
Whole-
sale
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
86.6
95.0
95.0
95.0
108.6
108.6
108.6
108.6
135.3
135.3
Retail
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
9a7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
99.7
100.3
Year and month
1937— Continued
June
July__
August
September
October
November
December.
1938
January
February
March
A pril
May
June...
July
A ugust
September
October ,
November
December
1939
January...
February
March ■
AprU.
May
June.
July
August
September
Index
Whole-
sale
1.35. 3
135.3
135.3
135.3
135.3
135.3
135. 3
135. 3
135.3
101.2
101.2
101.2
101.2
101.2
101.2
101.2
103.0
103.0
103.0
103.0
103.0
103.0
100.0
100.0
100.0
100.0
100.0
1«0.0
Retail
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100,3
100.3
100.3
100.3
100.3
100.3
100.3
100.2
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electrid weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
275852— 41— No. 33
364
CONCENTRATION OF ECONOMIC POWER
Table 229.— Range boilers
REGION VIII. ROCKY MOUNTAIN
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February...
March
April
May
June
July
August... .
September.
October
November.
December..
January
February...
March
April
May
Jime
July
August
September.
October
November.
December.
January..
February.
March
April
May
1936
1937
Index
Whole- Retail
86.8
86.8
86.8
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
95.0
95.0
95.0
108.5
108.5
108.5
108.5
150.6
150.6
101.6
101.9
101.9
101.9
101.9
101.9
101.9
101.9
101.9
101.9
101.9
101.9
103.5
103.5
103.5
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
104.0
104.0
104.0
104.3
104.3
Year and month
1937— Continued
June
July-...
August. -
September
October
November
December
1938
January
February
March
April
May
June...
July
August..
September
October
November
December.
1939
January
February
March
April
May
June
July
August
September
Index
Whole-
sale
150.6
150.6
150.6
150.6
150.6
150.6
150.6
150.6
150.6
101.2
101.2
101.2
101.2
101.2
101.2
101.2
103.5
103.5
103.5
103.5
103.5
103.5
100.0
100.0
100.0
100.0
100.0
100.0
Retail
104.3
104.3
104.3
104.3
104.3
104.3
104.3
102.8
102.6
99.8
99.8
99.2
99.2
99.2
99.2
99.2
99.2
99.2
99.2
98.6
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Boilers, range, 30-gallon, standard galvanized, electric weld, 85-pound working pressure;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars' destination.
Retiail: Distributor to plumbing contractor, delivered to job site, city.
CHAPTER XXI
PLUMBING SUPPLIES
DESCRIPTION AND LOCATION OF THE INDUSTRY
The plumbers' supplies industry includes those estabhshments whose
principal products are enamel ed-iron sanitary ware (bathtubs, sinks,
lavatories, etc.), plumbers' brass goods (faucets, spigots, valyes,
fittings, etc.), range boilers, and other miscellaneous fijctures and
fittings used by plumbers. Closely allied with these industries are
the manufacturers of vitreous china and semivitreous or porcelain
(aU-clay) sanitary ware, such as closet bowls, flush tanks, lavatories,
etc., for assembly into complete bathroom fixtures. Faucets, spigots,
valves, littings, etc., are made to a considerable extent by metal-
working estabhshments.
The production of plumbers' supplies in 1937 was valued at ap-
proximately $130,000,000, representing an increase of 145 percent
from 1933 when the value was only $53,000,000. Of the 1937 total,
plumbers' supplies, excluding pipe and \TLtreous-china sanitary ware,
accounted for $103,000,000, vitreous-china plumbing fixtures, ex-
clusive of fittings, $20,000,000, and other plumbers' supplies and
miscellaneous items, approximately $7,000,000.
Plumbers' supplies, exclusive of pipe and vitreous-china sanitary
ware, increased in value from $42,000,000 in 1933 to $103,000,000
in 1937, or 145 percent, while the value of 'vitreous-china sanitary
ware rose from $8,000,000 to $20,000,000, or 150 percent, during the
same period. Other products also increased in value, from approxi-
mately $3,000,000 in 1933 to approximately $7,000,000 in 1937, an
increase of 133 percent.
In 1929, 255 plants were producing plumbers' supplies, the number
declining to 232 in 1932 and rising to 241 in 1937. Pottery, including
porcelain ware, was manufactured by 231 firms in 1933 and by 251
firms in 1937. However, when production of establishments is classi-
fied according to the major product, 28 establishments reported the
production of 98 percent of the value of vitreous-china plumbing
fixtures.
The plants manufacturing plumbers' supplies in 1937 were scattered
over 27 States. Map XIII shows the geographical location of centers
of the industry. With the exception of California, production is
centered north of the Ohio River and east of the Mississippi River.
Table 230 shows the value of products, by States, for the plumbers'
supplies industry.
365
366 CONCENTRATION OF ECONOMIC POWER
Table 230. — Distribution of the manufacture of plumbing supplies, 1937
Production
State
Production
State
Value
Percent
of total
Value
Percent
of total
$14, 867, 968
14, 678, 499
11,139,864
10,069,812
8, 615, 205
7, 840, 834
13
13
10
9
8
7
New Jersey
$6, 144, 047
5, 770, 5:»
4, 487, 846
30, 305, 446
5
Pennsylvania ,...
New York
5
Ohio
Massachusetts
Other States (18)' _
United States
4
Illinois
26
Michigan
California -- -. ..
113,920,049
100
' Includes Alabama, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland,
Minnesota, Missouri, New Hampshire, Oregon, Rhode Island, Tennessee, Texas, Virginia, and Washing-
ton.
Source: Census of Manufacturers, 1937: "Plumbers' supplies, not including pipe or vitreous-china sani-
tary ware," table 2, p. 954.
Production and value of vitreous-cliina sanitary ware, by States,
are not available from census data. The production and value of
pottery, including vitreous-china sanitary ware, are, however, avail-
able and show that in 1937 eight States produced 85 percent of the
value of all pottery and porcelain ware and, as in the case of other
plumbers^' supplies, the production area, except for California, is north
of the Ohio River and east of the Mississippi River.
The number of companies engaged in the production of plumbers'
supplies and equipment is relatively small for most items. The
degree to which production is concentrated in a few large companies
varies with the product. The following table shows the items priced
and the percentages manufactured by the four leading firms, according
to data obtained from the Department of Commerce:
Product
Percentage
of total pro-
duced by 4
leading
companies
Product
Percentage
of total pro-
duced by 4
leading
companies
Closet . . .
61
69
Sink. ..
64
Lavatory .......
Bathtub
73
In the plumbing equipment lines there is a considerable variation
in products designed for the same use. For certain items, either
porcelain or vitreous china and enameled iron fixtures are used; for
others enameled iron alone or porcelain and vitreous china alone are
customarily used; while enameled sheet steel products are also popular.
For example, closet bowls are primarily vitreous chinaj while lavatories
may be either enameled iron or vitreous china, and bathtubs are almost
always enameled iron.
CONCENTRATION OF ECONOMIC POWER
367
368
CONCENTRATION OF ECONOMIC POWER
The production of plumbing equipment in 1937, by types of ma-
terials, is as follows:
Product
Vitreous china
Enameled iron
Number
Value
Number
Value
Closets:
Bowls -
1,388,203
1, 182, 489
269,384
$6, 720, 637
5, 259, 228
3, 128, 462
Tanks ...
21,236
943,840
1, 057, 647
712, 134
$173, 500
Lavatories
6, 065, 17'
Sinks. ..
9, 564, 563
Bathtubs
16, 731, 811
In addition to the above, semivitreous or porcelain (all-clay)
plumbing fixtures valued at $'477,011 were produced in 1937. In this
group are included laundry tubs, sinks, closet bowls and flush tanks,
lavatories, bathtubs, and other semivitreous fixtures.
Specifications.
For the purpose of this study the following items were specified:
Closets: Combination, vitreous-china, two-piece, close-coupled,
siphon action, round front with low tank, complete with
chromium-plated fittings, white sheet covered seat and cover,
china bolt caps, chromium-plated stop in supply.
Lavatories: Enameled iron, 20 by 18 inches, apron front, wall
hung, separate compression faucets with plug, chain, and stop-
per, stop in supply, P-trap, all exposed brass chromium-plated.
Sinks: Enameled iron, 42 by 20 inches, roll rim, combination
double faucet, strainer, P-trap.
Bathtubs: 5-foot enameled cast iron, recess tub with apron front,
complete with tub and shower fittings with transfer valve,
1 K-inch connected drain and overflow.
Price data at wholesale were gathered on these items in accordance
with the following specifications: Each, manufacturer's list with dis-
counts, manufacturer to jobber, f. o. b. cars, jobbers' stocks.
The retail specifications were: Each, distributor to plumbing con-
tractor, delivered to job site, city.^
Channels of Distributidn.
As in the case of he&ting boilers and radiation, plumbing equipment
and supplies are generally sold by the manufacturer to the jobber, and
by the jobber to the plumber or contractor. The contractor in turn
installs the equipment. Most consumer purchases are made through
the plumbing contractor or master plumber, the one major exception
being purchases, from mail-order houses and chain stores. In some
localities health and other ordinances have been so drawn as to make
it almost impossible for equipment from mail-order houses to meet
requirements as to fixtures and installation. In some cities, master
plumber associations have blacklisted mail-order fixtures.
Several of the larger producers of plumbing supphes and fixtures
maintain company^owned wholesale outlets in large cities throughout
the United States and sell through these as well as through inde-
pendent wholesalers and jobbers. Some companies sell exclusively
> The industry classifies these prices as "wholesale," but for purposes of this study they are defined as
"retai!."
CONCENTRATION OF ECONOMIC POWER 3Q9
tlirough independent wholesalers and jobbers and may or may not
operate company-owned display rooms. Many companies sell to
chain-store organizations and mail-order houses.
PRICE STRUCTURE
List Prices and Discounts.
Manufacturers usually establish a list price which is imiform
throughout the United States. Sales to jobbers and wholesalers are
made at a discount off the list price — usually 20 percent. Other
allowances are given by some companies, particularly on sales of
fixtures to jobbers and wholesalers for display use. These usually
take the form of an additional discount, but sales on this basis are very
small in volume.
The prevailing cash discount in the industry is 2 percent, the exact
discount provision varying with the company. One company allows
2 percent for payment by the 15th of the month following shipment,
and net 30 days after discount date. Another allows 2 percent for
payment the 25th instant or 10th proximo following shipment,
depending on whether shipment was made between the 1st and 15th
of the month, or 15th to end of month. "Still another allows this
discount on payment 10 days after billing and shipment.
Freight Allowances.
Carlot sales of plumbing equipment are generally made on an f. o. b.
plant basis with carlot freight allowed. On less-than-carlot orders,
carlot freight is allowed and the buyer must absorb the difference.
Delivery is made ordinarily to the warehouse of the jobber who must
bear delivery costs to the contractor or plumber.
Terms and Conditions of Sale.
Information as to terms and conditions of sales as practiced by
certain of the large producers is discussed hereafter. They are not
necessarily followed by all producers, but are indicative of the trade
practices of this industry.
Orders for plumbing fixtures and fittings for specific building
projects are accepted only for shipment withm 6 months from date of
order. A specific building project is defined by the industry as one
requiring 50 or more complete plumbing units in white, or 12 or more
complete units in color. Such specific building projects may cover
either new or remodeling jobs. Orders fo^ individual houses or
private residences are not considered specific building projects unless
they are sufficiently large to qualify under the requirements outlined
in this paragraph. Fixtures for speculative housing developments
are normally supplied from wholesalers' stock.
Wholesalers who have taken contracts for housing operations at a
definite price register them at the time of acceptance. If prices
advance, a period of 30 days is allowed for withdrawal of such orders.
In the event of any future price advance, only those stock orders
are accepted at the old basis which are already on hand or which bear
postmarks indicating that they were already in transit on the effective
date of the advance. When a price advance occurs, a period of 15
days is allowed for wholesalers to get actual orders covering any jobs
on which they have quoted figures based on the old price.
370 CONCENTRATION OF ECONOMIC POWER
In the event of a decline in prices, no provision is made for rebates
on goods in customers' stocks, credit being granted only on goods in
transit at the time of the decline.
PRICE LEVELS AND TRENDS
The wholesale price of each of the various plumbing items, in
carlots, does not vary geographically since full freight is allowed on
such shipments. Wholesale prices do vary, however, on less-than-
carlot shipments as only the carlot freight is allowed.,
Retail prices as established in the manufacturers' list do not vary
geographically but actual sales may be made at less than the list
quotation, depending on the local market situation. Comparable
price data for plumbing fixtures were difficult to obtain, particularly
from retail dealers, because of the method of determining the sales
price. The reporter computed the price of the complete fixture by
taking the price of the basic fixture, without fittings, and adding
thereto the prices of the various fittings. It was, therefore, difficult
to secure data on identical fixtures and fittings due to the varying
grades of materials and types of fittings which might be added to a
basic fixture. In addition, the grade and type of fitting varied with
the section of the country in which the price was quoted.^
COMBINATION CLOSETS
In September 1939, the typical price for the type of water-closet
specified in this study was $20.60. The dealer, or distributor, pur-
chased this product for $16.48, a spread of $4.12, or 25 percent.
Prices are available only from 1937 to September 1939 for water-
closets and during this period the trend was upward. The index
number representing this series, which has as its base the average of
prices in the third quarter of 1939, was 94 in January 1937. (See
chart XXVIII and table 231.) This held for 1 month. The price
then moved up 2 percent and in August 1937 a further upswing
occurred which carried the index to 98. This level was maintained
until August 1938 when there was a decline to 95. After 5 months,
tlie index again rose in February 1939 — this time to 100 percent of
the average in the third quarter of 1939." This level was still in
effect when this survey was made.
LAVATORIES
In September 1939, the typical price of enameled iron lavatories at
wholesale was $11.62 and at retail $14.53. The spread between
wholesale and retail prices was 25 percent.
The level of prices for lavatories has been fairly steady since 1935,
with only two. major deviations from the 1939 level. (See chart XXIX
{Hid table 232.) On the basis of the average price in the third quarter
of 1939 as 100, the index' number for January 1935 was 97. After'a
drop to 93 in the first half of the year, the index rose in July to 96
where it was maintained for the remainder of the year. In January
1936, it advanced to a point slightly under the level of late 1939 and
remained stationary for the year. In February 1937, a series of price
s The index nuinbcrs for conilniintion closets, lavatories, sinks, and bathtubs are identical for all rcRions
because the wholesale and retail pricca are in a consistent ratio.
CONCENTRATION OF ECONOMIC POWER 37 J
changes began wliich by April had raised the index to approximately
109. This level was maintained for 4 months, but in August, price
revisions brought the level down 2 percent where it remained for the
next 4 months. There was a slight decline in Janu&ry 1938 and this
was followed by decreases of 4 percent in March and of 3 percent in
June, bringing the index to 98. Price increases of approximately 1
percent in September 1938 and in February 1939 carried the index to
the base period level.
SINKS
In September 1939, the typical wholesale price of the type of sink
included in the survey was $15.04. The retail list price to consumers,
established by the manufacturer on the item, was $18.80. The spread,
as in the case of other plumbing products, was 25 percent.
Price trends for sinks show a larger degree of movement than some
of the plumbing products, but the general upward trend prevailed
with a "low" in 1935 and a "peak" in 1937, followed by a tendency to
hold to the level established in early 1938. (See chart XXX and
table 233.)
In January 1935, the index number (based on prices in third quarter
of 1939 = 100) for this series was 88. After a 4-percent decline
in the first half of the year,' an upswing began which in 3 years carried
the index to its peak of 110 in April 1937. There was only slight
change from that time imtU January 1938, when, in line with the trend
of other consumers' goods, the price of sinks began to dechne rapidly.
The index dropped 9 percent from December 1937 to May 1938, then
rose 2 percent from that time to September 1939.
BATHTUBS
The consumers' Kst price for the type of bathtub specified in this
survey was $51.60. The distributor received a 20 percent reduction,
the wholesale price being, therefore, $41,28.
The price trend since 1935 is similar to that for other plumbing
suppUes, or a rise from 1935 to 1937, a dechne in the early months of
1938, and stabiUty thro'ughout most of 1938 and all of 1939. (See
chart XXXI and table 234.) The Bureau's new price index for both
wholesale and retail prices (based on prices in the third quarter of
1939 = 100) which had been 85 in January and February 1935 advanced
17 percent to 99 in January 1936. The index was stable until February
1937, when further increases were initiated which carried it to 104 by
August. There was little change until February 1938, when the index
dropped to the base period level, which was maintained through 1939.
In considering the trends of prices for plumbing items as a grOup,
. two facts are apparent:
1. Prices for January 1935 were on the whole lower than in
1939 and the movement was generally upward. There was
usually a marked peak in prices in 1937, followed by a decline in
1938 and a maintenance of the 1938 prices through 1939.
2. Price changes for these items are fairly infrequent and the
price set for January or February of any year quite often holds
for the entire year.
372
CONCENTRATION OF ECONOMIC POWER
INDEX
120
Chart XXVIII
COMBINATION CLOSETS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939-100
COMPOSITE • UNITED STATES AVERAGE
RET/
ilL-B«flin.---^
/
r'"'
HOLESALE
100
90
80
1935 1936 1937
UNITED STATES BUREAU OF LABOR STATISTICS
INDEX
120
I 10
1938 1939 1940 1941
INDEX
120
no
Chart XXIX
ENAMELED IRON LAVATORIES
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939-100
COMPOSITE - UNITED STATES AVERAGE
•
„.p.
^
f^
f
" RETAIL
- Btglnt
90
1935 1936 1937
UNITES STATES BUREAU OF LABOR STATISTICS
INDEX
120
I 10
90
1938 1939 1940 1941
CONCENT^RATION OF ECONOMIC POWER
373
INDEX
120
110
Chabt XXX
ENAMELED IRON SINKS
WHOLESALE AND RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939- 100
COMPOSITE - UNITED STATES AVERAGE
WHOLESALE '
r
\
/—
f '
A*^
*
'•■~~- RETAIL
- B«gln«
90
1935 1936 1937 1938
UNITED STATES BUREAU OF LABOR STATISTICS
INDEX
120
no
100
90
80
1939 1940 1941
INDEX
120
110
100
90
Chabt XXXI
ENAMELED IRON BATH TUBS
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939-100
COMPOSITE - UNITED STATES AVERAGE
WHOLESALE^
^^—/"^
^
y
f
[Z RETAIL
-B.«.nt
INDEX
120
MO
100
90
1935 1936 1937 1938 1939 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
374
CONCENTRATION OF ECONOMIC POWER
Table 231. — Combination closets
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
January
February.-.
March
April
May
June
July
August
September.
October
November.
December. .
January . — .
February...
March
April.-
May
Jiine
July
August
September.
October
November..
December..
January . .
February.
March
April
May
Index
Whole-
sale
94.2
94.2
95.6
.95.6
95.6
Retail
94.2
94.2
95.6
95.6
9$. 6
Year and month
1937— Continued
June -
July.-
August
September
(5ctober
November
December
1938
January
February--
M arch -
April
May
June
July----
August - - -
September
October --
November
December. - . -
1939
January
February
March
April
May-
June
July- :
August - -
September
Index
Whole-
sale
95.6
95.6
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Retail
95.6
95.6
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
98.1
95.6
95.6
95.6
95.6
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Speciflcation: Closet, combination, vitreous china, 2-piece, close coupled, syphon action, round front
with low tank, complete with chromium plated fittings, white sheet covered seat and cover, china bolt
caps, chromium plated stop in supoly; each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city
CONCENTRATION OF ECONOMIC POWER
Table 232. — Enameled iron lavatories
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0)
375
Year and month
1935
January
February
March
April
May
June
July...
August
September ._
Oetober
November
December
1936
January
February
March
April
May
June
July
August
September
October
November
December
1937
January...
February _.
March
April ^
May
Index
Whole-
sale
Retail
97.4
97.4
97.4
97.4
97.4
97.4
92.9
92.9
92.9
92.9
92.9
92.9
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
96.4
99.8
99.8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
09
8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
99
8
99.8
99.8
100.2
100.1
105.9
105.9
108.6
108.6
108.6
108
Ml
Year and month
1937— Continued
June -
July.
August
September
October
November..-.
December
193S
January
February
March...
April.. -
May
June
July
August
September
October
November
December
1939
January
February . . . .
March
April.
May
June
July
August
September
Index
Whole-
sale
108.6
108.6
106.7
106.7
106.7
106.7
106.7
105.9
105.9
101.9
101.9
98.5
98.5
98.5
98.5
99.5
99.6
99.5
99.5
99.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
RetaU
108.6
108.6
106.7
106.7
106.7
106.7
106.7
105.9
105.9
101.9
101.9
98.4
98.4
98.4
98.4
99.4
99.4
99.4
99.4
99.4
100.0
100.0
100.0
100.0
100. a
100.0
100.0
100.0
Specification: Lavatories, enameled iron, 20 by 18 inches, apron front, wall hung, separate compressiion
faucets with plug, chain and stopper, stop in supply, P-trap, all exposed brass chromium plated; each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail; Distributor to plumbing contractor, delivered to job site, city.
376
CONCENTRATION OF ECONOMIC POWER
Table 233. — Enameled iron sinks
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January -.
February
March
April.
May
June
July
August-
September
October
November
December
1936
January
February—
Mjirch
April
May
June.-
July —
August ---
September
October
November
December
1937
January
February
March
April
May
Index
Whole-
sale
88.0
88.0
88.0
84.5
84.5
84.5
92.5
92.6
92.5
92.5
92.5
92.5
99.6
99.6
104.5
109.5
107.4
Retail
88.0
88.0
88.0
84.5
84.5
84.5
92.5
92.5
92.5
92.5
92.5
92.5
92.5
99.1
99.1
99.1
99.1
99.6
99.6
99.6
99.6
99.6
104.5
109.5
107.4
Year and month
1937— Continued
June
July
August
September
October
November
December
1938
January
February _.-
March
AprU...
May
June
July
August
September
October
November
December
1939
January.-
February
March
April
May-- -
June
July
August
September
107.4
107.4
107.7
107.7
107.7
107.7
108.2
105.3
105.3
101.1
101.1
98.1
98.1
98.2
98.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
107.4
107.4
107.7
107.7
107.''
107. •
108. ;
105,
105.
101
101
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specifications: Sinks, enameled iron, 42 by 20 inches, roll rim, combination double faucet, strainer, P
trap; each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
377
Table 234. — Enameled iron bathtubs
COMPOSITE UNITED STATES AVERAGE
(Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April-
May -
June.-
July- --.
August
September
October
November
December
1936
January
February --.
March
April.'...
May
June -
July
August
September —
October
November
December
1937
January —
February -
March.-
April -.
May --
Index
Whole-
sale
Retail
84.7
84.7
84.7
84.7
84.7
84.7
86.3
86.3
86.3
86.3
86.3
86.3
91.7
91.7
91.7
91.7
91.7
91.7
91.7
91.7
91.7
91.7
92.8
92.9
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
98.7
99.8
99.7
102.2
102.2
102.2
102.2
Year and month
1937— Continued
June
July...-
August
September -..
October
November
December
1938
January
February
March
April
May
June
July...
August
September
October
November
December
1939
January
February ....
March
AprM
May
June
July
August
September
Index
Whole-
sale
102.2
102.2
103.6
103.6
103.6
103.6
103.6
103.4
103.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100,0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
loao
100.0
Retail
102.2
102. 2
103.6
103.6
103.6
103.6
103.6
103.4
103.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Tubs, bath, 5 feet, enameled cast Iron, recess tub with apron front, complete with tub and
shower fittings with transfer valve, m inches connected drain and overflow. 5 feet chromium plated rod
with 8 ounce white duck curtain and pins; each.
Wholesale: Manufacturer's list with discounts, manufacturer to jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site, city.
CHAPTER XXII
STRUCTURAL CLAY PRODUCTS
DESCRIPTION AND LOCATION OF THE INDUSTRY
Structural clay products are included in the Census of Manufactures
as a part of the "Clay Products, other than Pottery," industry.
Tliis industry had a production valued at $163,000,000 in 1937 and
$298,000,000' in 1929, according to data published by the Bureau
of the Census. For the purposes of this study prices were collected
for the following products: Common brick, face brick, hollow building
tile, floor tile, and sewer pipe. The importance of each of these
products in relation to the industry as a whole is shown below:
Table 235. — Importance in industry of specified structural clay products
Product
Value
(000 omitted)
1937
1935
1929
Percent
of total
value of
industry
in 1937
Brick:
Common
Face.
Tile:
Hollow building
Floor - -.
Sewer pipe
Total
Value of clay products other than pottery
$34,000
14,350
9,870
1,750
13,700
$18, 200
7,000
5,000
1,000
8,600
$58, 700
36,120
19, 800
3,770
21, 300
21.4
9.0
6.2
1.1
73, 670
159, 000
39,800
90,000
139, 690
265, 000
Source: Census of Manufactures, 1937, The Cl&y Products Industries, pp. 850-852.
In 1937, 1,198 plants were engaged in the manufacture of clay
products other than pottery; there were 888 plants in 1935 and 1,760
plants in 1929. For the industry as a whole, production was scattered
throughout the 48 States, but this wide distribution does not appl}'-
to all individual products. Thus, while there are brick plants in
every State, the manufacture of floor tile is concentrated in only a
few States. The other products studied fall between these two
extremes.
Table 236. — Geographical distribution of production, structural clay products, 19S1
State
Number
of plants
Value of
product
Percent
of total
Ohio -
172
149
41
68
64
43
661
$29, 865, 536
28, 292, 925
14, 383, 035
10, 290, 778
8, 275. 533
7,784,120
64,369,813
18
Pennsylvania
Missouri
California ..
g
Illinois ■ ...;
New Jersey
5
Other States (43)
40
Total United States
1,198
1(J3. 261, 740
100
Source: Census of Manufactures, 1937, The Clay Produrts Industries, p. 847.
'J7r,852— 41— No. ?,?. 2G
379
380
CONCENTRATION OF ECONOMIC POWER
CONCENTRATION OF ECONOMIC POWER 381
Map XIV shows the six States leading in the production of clay-
products other than pottery, which together produced 60 percent of
the national total. Table 236 shows the geographical distribution of
value of products of the industry.
Concentration of Ovmership.
For the industry as a whole there is a wide diffusion of ownership,
but the degree of concentration varies greatly for different products.
Department of Commerce statistics show that the four leading com-
panies manufacture 63 percent of floor tile, 37 percent of sewer pipe,
25 percent of building tile, 16 percent of face brick, and 7 percent of
common brick. Of the five items listed, the one having the smallest
total value of product has the highest degree of concentration.
Items Produced in Industry.
The chief products of this industry are brick and tile. There are,
however, a great variety of articles included in this general classifica-
tion. Among the various types of brick produced are common, face,
hollow, salt glazed, and special brick such as vitrified or fire-clay.
Tile may be for uses such as partitions, or for floors or walls, as well as
for floor arching, fireproofing, roofing, and conduits. Also produced
by the industry are sewer pipe, drain tile, stove and flue linings,
refractory cement, and other special products.
Commodity Specifications.
The items selected for pricing, as representative of their classes,
were —
(1) Common building brick.
(2) Standard colonial red face brick.
(3) Hollow partition building tile, 4 inches by 12 inches by
12 inches, 3 cell, scored, approximately 16 pounds weight.
(4) Floor tile, 1 inch hexagon, color group 1 (white, red, or gray).
(5) Sewer pipe, 6 inches, vitrified, first quality.
PRICE STRUCTURE
Wholesale Pricing System.
Most structural clay products are sold on an f. o. b. plant basis,
although sewer pipe is frequently sold on an f. o. b. destination or
delivered basis.
The channels of distribution and market areas for the various
structural clay products vary with the product and with the distri-
bution of production. Transportation costs, however, limit sales areas
on all these products.
The common brick branch of the industry is characterized by small
scale operations, ordinarily operated by the individual owners. The
market area is limited by high transportation costs and low unit value
and by the further fact that the raw material is widely distributed.
Most of the product is sold direct to the consumer by the producer,
but sales may be made through local supply houses or dealers, in
which case a discount, usually about $1 per thousand, is granted the
wholesale purchaser. Prices, both wholesale and retail, tend to be
uniform within each market area.
Most producers price their common brick on an f. o. b. plant basis,
with a fixed delivery charge for job site deliveries. In the larger areas
382 CONCENTRATION OF ECONOMIC POWER
this delivery charge is on a zone basis but in smaller places the base
delivery charge applies anywhere within the area served.
Production and market areas for face brick vary only slightly from
those for common building brick. In a large number of the cities
surveyed, however, face brick is merely a very select common brick.
In areas where the local clay is suitable for making face brick, the
situation is the same as for common brick. However, since all clay
is not suitable for face brick production and since transportation cost
is smaller in relation to unit value, face brick has a somewhat wider
market range than common brick. For instance, one producer of
face brick sells in the New York, Detroit, and Chicago markets and
in some New England markets. Similarly face brick produced near
Minneapolis sells in the Dakotas and eastern Montana.
On local transactions, the sales are usually from producer to con-
sumer as in the case of common brick. However, where the brick
is shipped outside the immediate producing area, sales are largely from
producer to dealer and from dealer to consumer. In some instances,
the retail dealer is, in fact, a branch house of the producer.
The price range for face brick is considerably wider than for com-
mon brick due to the wide variety, quality, and texture of the product.
Prices of standard size face brick may range from a premium of $1
per thousand over common brick to as much as $50 to $60 per thousand.
The face brick price in this study, however, is that used in general
residential construction.
The market for partition tile is broader than that for common
brick but generally not as wide as the area for face brick. Sales are
made from producer to dealer and from dealer to consumer, or may
be made direct from the producer to contractor. Dealer discounts are
generally quoted at so much per ton while retail sales are made per
thousand.
Floor tile manufacturing is most highly concentrated both as to
producing plants and as to area. According to members of the
industry, sales are usually made direct from producer to contractor,
although in some places a dealer-jobber may enter the transaction.
Prices are quoted f. o. b. plant with freight equalized with competing
plants on carlot orders. Packaging and shipping charges are custom-
ary in this branch of the industry and are charged to the customer as
a part of the cost.
Sewer pipe is generally sold from manufacturer to dealer and from
dealer to consumer, although large contracts go direct from manu-
facturer to consumer. The saies area is considerably wider than for
any of the other products except floor tile. It is usually priced on
an f. o. b. destination basis, although some plants sell on an f. o. b.
plant basis and equalize freight on carlots with competing plants.
Discounts and Payment Terms.
Manufacturers' discounts and payment terms vary considerably.
Discounts may be quoted in flat dollars and cents terms or may be
allowed on a percentage basis.
For common building brick, the trade discount varies from 50 cents to
$1 per thousand where a flat sum is granted and from 10 to 15 percent
on the plant price where a percentage is granted. The cash discount
varies from 50 cents to $1 per thousand or from 2 to 5 percent. The
time allowed for receiving this cash discount is variable, also, and
may be the 10th and 25th proximo, 10th proximo, or 30 days.
CONCENTRATION OF ECONOMIC POWER
383
The face brick trade discounts range from $1 to $4 per thousand.
There seems to be a system of relating trade discounts for face and
common brick, sine*" nany companies providing a discount of $1
per thousand for face brick offer a discount of 50 cents on common
brick, of $2 on face brick and $1 on common brick.
Hollow building tile trade allowances, similarly, vary from $5 to
$10 per thousand or from 2 or 3 percent to 10 percent, while cash
allowances vary from 2 to 5 percent. The 2 percent cash discount is
most prevalent, however, among hollow building tile producers. The
cash discount date may be the 10th proximo, 10th and 25th proximo,
10 days after shipment and billing, or 30 days.
Sewer pipe cash discounts range from 2 to 5 percent, with 3 percent
the ■ most prevalent discount. In general, no trade discounts are
given but there is a commission to the dealer or agent on sales made
through these channels.
PRICE LEVELS AND TRENDS
trends for the various structural clay products
For this reason each item will be discussed
Price levels and
vary considerably,
individually.
COMMON BUILDING BRICK
Price Levels.
Retail prices for common building brick ranged from $11 in one
midwestern city to $30 in a city in the Rocky Mountain area. Typical
prices were distributed as follows:
Typical retail prices
Under $13.00..
$13.00 to $13.99
$11.00 to $14.99
$15.00 to $15.99
$16.00 to $16.99
$17.00 to $17.99
Number of
cities
Typical retail prices
$18.00 to $18.99.
$19.00 to $19.99.
$20.00 and over
Total
Number of
cities
47
The average pf typical prices and range of typical prices in Sep-
tember 1939 is shown by regions in the following table:
Region
Typical prices
Range
Average
I. New England .
$16.00 to $20.00 . -
$17 67
II. Middle Atlantic .
$13. 50 to $15.00
14. 50
ni. East North Central .. _...
$11.00 to $18.00 ..
14 95
IV. West North Central ....
$15.10 to $20.70.
re. 76
v. South Atlantic ,
$12.50 to $24. 50...
16.36
VI. East South Central
$13.00 to $15.00
13.88
VII. West South Central
$13.50 to $18.00
15.20
VIII. Rocky Mountain
$12.50 to $3ft.00 .'.
18.68
IX. Pacific. -.
$13.50 to $19.00
J6.67
United States
16.34
In regions where there is a wide spread between the high and low
prices the difference is primaj'ily accounted for by the fact that the
cities reporting the highest prices do not have locally manufactured
brick to supply the demand. Prices in such cities as Fargo, N. Dak.;
334 CONCENTRATION OP ECONOMIC POWER
Miami, Fla.; and Boise, Idaho, are so affected, and the frcigJit charge
may equal or even exceed the plant price.
Price Trends. (See chart XXXII and tables 237 to 246.)
Common building brick prices have remained fairly constant since
1935, participating neither in the broad upswing of most commodities
during 1935-37 nor in the subsequent downswing in 1938. The price
index for the United States (based on July to September 1939=100)
was 96.1 in January 1935, dropped slightly to 95.9 (the low for the
period) in September 1935 and began a very gradual rise in December
of that year. The rise was never greater than 1 percent at any time
and changes were comparatively infrequent. By April 1939, the
index reached its peak, 101.6; it then fell slightly to 99.9 in September.
Price trends by regions show little variation from the national
pattern. The New England region showed almost no change from 1935
through 1936, followed by an 8 percent rise in January 1937 and by
smaller rises in January and February 1938. Since February 1938
the price has remained stable. The index in the Middle Atlantic region
showed little movement except for a slight rise in March 1939 and a
drop to the base level in June 1939, where it has since remained.
The East North Central and South Atlantic regions followed the
general price movement characteristic of the 1935-39 period more
closely than the other regions. The indexes here were low in 1935,
rose gradually in 1936 and early 1937, reached a peak during 1937-38,
dropped in July 1938, and rose slightly in 1939, since which time the
prices have remained constant. At no tim.e were the changes very
great, but the pattern of general price movement for the period of
1935-39 is apparent.
In the West North Central region peak prices were recorded during
1935 (105.4 in January), but there was very httle price movement
until the latter part of 1937 when a downward movement began,
reaching the low for this region (99.1) in May 1938. This low price
held until February 1939 when the index rose to 1O0.2 and remained
constant until September 1939 when there was a slight drop.
The East South Central region also began the period studied with
indexes above the 1939 base period (103.2 in January 1935), and held
this level during 1935, 1936, and 1937, when there began a downward
movement. After a slight drop in January 1938 the base period Jevel
was reached in August 1938 and remained constant thereafter.
In the West South Central region a downtrend during 1937 and
early 1938 was followed by a rise in March 1938 and again in July
1938 when the base period level was reached. Since then, no change
has taken place.
A slight decrease in prices in 1936, and a gain in 1937, followed by
rising prices after December 1937, reaching the base level 'in April
1939, characterized the price movement in the Rocky Mountain area.
In 1935 the Pacific coast prices were low as comnared with the
July-September 1939 level and remained so until June 1938 when
the one advance in prices for the period occurred. Thus, there has
been great stability of brick prices on the coast.
FACE BRICK
Price Levels.
Tn September 1939 face brick prices ranged from about $20 to
over $50 at retail. There was considerable variation among the
CONCENTRATION OF ECONOMIC POWER
385
Chart XXXII
COMMON BRICK
RETAIL PRICE INDEXES
JULY- SEPTEMBER I939 = I00
IHOCt UNITED STATES - W«i«r<t«d AxfogtPiict REGION X- SOUTH ATLANTIC
REGION I
- NEW
ENGLAND
i ' !
, 1-
U'~
i
REGION SI - EAST SOUTH CENTRAL
REGION n - MIDDLE ATLANTIC
I
REGION
nr- EAST NORTH CENTRAL
!
/
/^
REGION
DC - WEST NORTH CENTRAL
f^
"^^ 1 --
\,
1
1
1939 l»M 1937 1938 1939 1940 194
UNITED 5I4TCS BulCiU Of LA80R STaTiSTiCS
'-^
REGION
■m -
#tST SOUTH CENTRAl,
'
i 1
/
=_a
/
REGION •vrn- - ROCKY MOUNTAIN
w
REGION
IX. - PACIFIC
1
1933 1936 I93T 1938 1939 1940 1941
38g CONCENTRATION OF ECONOMTC POWER -
cities and regions, with higher prices more prevalent in the western
areas. The range of prices and average typical prices by regions in
September 1939, was as follows:
Region
I. New England
II. Middle Atlantic
III. East North Central.
IV. West North Central -
V. South Atlantic
VI. East South Central. .
VII. West South Central.
VIII. Rocky Mountain
IX. Pacific
United States.
Range of typical prices
$22.00
$21.00
$18.00
$17.00
$18.00
$15.50
$24.50
$23.50
$21.00
to $36.00.
to .$22.00.
to $21.00.
to $33.30.
to $30.00.
to $26.00.
to .$35.00-
to $50.00.
to $56.85.
Average of
typical
prices
$27. 50
21.75
19.50
24.75
21.75
20.25
28.50
33.50
33.50
25.50
Price Trends. (See chart XXXIII and tables 247 to 256.)
As in the case of common brick, face brick prices showed very little
movement during the period from 1935 to 1939, despite the fact that
production was increased very greatly during the period. The retail
index (based on July to September 1939=100) was 94.8 in 1935
and by a series of slight advances reached 100.4 in August 1938;
it then dropped back to 100 in October 1938 and has remained
practically unchanged since that date. Face brick prices apparently
did not reflect the general upswing of commodity prices during late
1936 and early 1937 or the subsequent drop in 1938.
Regional prices follow the United States composite rather closely
although hi the West North Central, East South Central, and West
South Central areas prices were slightly liigher in 1935 than in the
period used for general comparison, Ju y to September 1939.
HOLLOW BUILDING TILE
Price Levels.
Building tile prices show a wide spread, both at retail and at
wholesale. Typical retail prices in September 1939 vs^ried from
about $60 per thousand in one East North Central city to about $145
in a New England city, while wholesale prices ranged from about
$50 to over $100 per thousand.
The range of prices within regions was considerably wider at retail
than at wholesale, as was the spread between regions. In general,
however, both wholesale and retail prices were consistently lower
in producing areas, thus reflecting differences in transportation costs.
Price Trends' (See chart XXXIV and table 257.)
Prices of hollow building tile show practically no change during the
entire 5-year period of the study, participating neither in the broad
upswing of most commodity prices during 1935-1937, nor in the subse-
quent dov/nswing. The United States average wholesale index (based
on July to September 1939 = 100) moved from 99 in January 1935 to
100 by April 1939 and remained stationary thereafter. The cor-
responding r^^tail iiidtx rose slowly from 99 3 in 1935 to 100.1 by
January 1938 (by 3 changes) and dropped baciv to 100.0 in April 1939
where it remained.
CONCENTliATlUN OF ECONOMIC POWER
387
Chart XXXIII
FACE BRICK
RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 '100
UNITED STATES- WtlghUd A»«rott Pflc«
REOION X- NEW
ENOLAND
t
NEeiON H - HIOOLE ATLANTIC
—^
REeiON
III - EAST NORTH CENTRAL
[L^
J
r~
__>J
REOION IE . WEST NORTH CENTRAL
I III i»
1*35 ISM IS3T ISM ISM 1940 l»4l
UNITCO STATES BURCIU OF LASOR STATISTICS
REOION I - SOUTH ATLANTIC
RESION
3tr- EAST SOUTH CENTRAL
^
_. -i
.
REGION 311 • WEST SOUTH CENTRAL
!k
REOION sni
■ ROCKY MOUNTAIN
"1
r^
J
L
^ 1'
REGION IX • PACIFIC
1939 1936 1937 I9M 1939 1940 1941
388
CONCENTRATION OF ECONOMIC POWER
The prices for the several regions show very similar trends. The
greatest change was in the New England area where the Bureau's
retail price index moved from 92,1 in 1935 to |100 by July 1938, but
even in this area price changes were very infrequent witli only 3
changes recorded during the 5-year period.
Chart XXXIV
HOLLOW BUILDING TILE
WHOLESALE AND RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 = 100
INDEX
120
no
COMPOSITE - UNITED STATES AVERAGE
RETAIL
WHOL
ESALE
INDEX
120
80
1935 1936 1937
UNITED STATES BUREAU OF LABOB STATISTICS
1939
FLOOR TILE
Price Levels.
Only one level of prices of floor tile is available for study. Since
these prices are on an f, o. b. plant plus freight basis, considerable
variation occurs among the dift'erent regions. The range of typical
prices and average typical prices by regions are as follows :
Region
Typical prices
Range
Average
I. New England
II. Middle Atlantic
III. East North Central..
IV. West North Central.
V. South Atlantic
VI. East South Central..
VII. West South Central.
VIII. Rocky Mountain
IX. Paoiflc.
$0.2283 to
$0.2160 to
$0.2230 to
$0.2309 to
$0.2242 to
$0.2274 to
$0.2443 to
$0.2636 to
$0.2560 to
$0.2335.
$0.2242.
$0.2306.
$0.2510.
$0.25u5.
$0.2426.
$0.2621.
$0.3162.
$0.2884.
United States.
$0. 2315
.2211
.2277
.2433
.2321
.2370
.2531
.2824
.2765
.2457
CONCENTRATION OF ECONOMIC POWER
389
Price Trends. (See chart XXXV and table 258.)
Floor tile prices have fluctuated more than those of the structural
clay products dealt with above. In January 1935, the index, based on
July-September 1939 = 100, was 108.3. In February 1935, the price
dropped about 5 percent but regained most of the drop in August of
that year. It then remained almost unchanged until December 1936,
when it dropped 8 percent. In March 1937 it rose to its former level
and in May it again advanced slightly, but in September the trend was
reversed and prices fell to the base level. In December the index
again rose, canceling its September decline, but in March 1938 it
dropped once more to the base period level, where it remained for the
balance of the period.
Chabtt XXXV
FLOOR TILE
WHOLESALE PRICE INDEXES
JULY- SEPTEMBER 1939-100
INDEX
120
110
100
COMPOSITE -UNITED STATES AVERAGE
LT
nn/
]
u ■**
INDEX
120
110
100
90
1935 1936 1937
UNITED STATES BUREAU OF LABOR STATISTICS
1938
1939
1940
This trend was followed in all regions except the Pacific coast,
where the 1935 price was below the base level instead of above it.
The index remained below 100 until March 1937, when the base
period level was reached. No further changes occurred between
March 1937 and September 1939.
SEWER PIPE
Price Levels}
The retail price of 6-inch vitrified sewer pipe in September 1939
ranged from $0.1500 per foot near a center of production in the West
North Central area to about $0.3500 in some of the Rocky Mountain
area cities. Geographical variations of prices seem to reflect chiefly
the distance of the market from the centers of production. The range
' The wholesale price data for sewer pip>e were fragmentary and, therefore, have not been included in
this study.
390
CONCENTRATION OF ECONOMIC POWER
of retail prices and average typical prices by regions, as of September
1939, were as follows:
Region
Typical retail price
Range
Average
I. New England .
$0.1800 to $0.2300
$0. 2100
11. Middle Atlantic
$0.1925 to $0.2300
.2092
III. East North Central... _
$0.1800 to $0.2000
.1872
IV. West North Central...
$0.1500 to $0.2610
.2050
V. South Atlantic . .
$0.1900 to $0.3000 .
.2206
VI. East South Central ..
$0.2100 to $0.2300
.2131
VII. West South Central .
$0.2100 to $0.2400
.2260
VIII. Rocky Mountain .
$0.2500 to $0.3500. . .
.2969
IX. Pacific.
$0.2340 to $0.2625
.2530
United States.
$0.1500 to $0.3500
.2286
INDEX
120
Chart XXXVI
SEWER PIPE
RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939=100
COMPOSITE - UNITED STATES AVERAGE
100
80
INDEX
20
I 10
90
80
1935 1936 1937
UNITED STATES BUREAU OF LABOR STATISTICS
1938
Price Trends. (See chart XXXVI and tajjle 259.)
Like most of the structural clay products, sewer pipe prices show
little or no fluctuation. The low point at retail was reached at the
end of 1935 (90.7) and the high from April through September 1939.
General commodity market trends are reflected to a limited extent
in sewer pipe prices; thus there was an upswing of 4 percent from
December 1936 to March 1937 and a drop early in 1938. However,
prices rose again in January 1939 (7 percent) and reached the base
period level in April after two additional minor changes.
Regional prices N^how trends similar to the national average in pro-
ducing areas such as the East North Central and West North Central
regions, while in areas not producing sewer pipe, prices are more
stable.
CONCENTRATION OF ECONOMIC POWER
391
Table 237. — Common brick
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September.- -
October
November. ..
December
1936
January
February
March
April-. -
May
June
July
August
Retail
index
96.1
96.1
%. 1
96.2
96.2
96.2
96.2
96.1
95.9
95.9
95.9
96.2
95.9
96.6
96.6
96.6
97.2
97.1
97.1
97.1
Year and month
1936— Continued
September
October
November
December
1937
January
February
March .-
April-..
May
June
July
Augu.st_.
September
October
November
December.
1938
January
February
Retail
index
97.1
97.1
97.1
97.1
98.1
98.1
98.2
98.0
98.2
98.2
98.5
98.5
98.5
98.5
98.4
98.5
Year and month
1938— Continued
March
April
May...
June
July...
August
September
October-
November.--
December..
1939
January.-
February
March
April--.
May -.
June
July---
August
September
Retail
index
99.1
99.1
98.9
98.9
99.8
99.7
99.8
99.9
99.9
99.9
99.9
99.9
101.4
101.6
101.6
100.0
100.2
100.2
99.9
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 238. — Common brick
REGION I. NEW ENGLAND
[Retail price index— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
90.9
90.9
90.9
90.9
90.9
90.9
90.9
90.9
90.9
90.9
90.9
90.9
91.5
91.5
91.5
91.5
91.5
91.5
91.5
•91.5
1936— Continued
September
October
November
December ... . .
91.5
91.5
91.5
91.5
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
98.9
99.4
100.0
1938— Continued
March-.- -
April .
100.0
100.0
March
May
June -
100.0
April
100.0
May
1937
January -
February .
July
August
100.0
.Tnnn
100.0
July
September---
October
100.0
August
100.0
March.
November.
100.0
October
April..
December
1939
January
100.0
November
May
December
June
July
100.0
1936
August
February
100.0
March
100.0
February..
October ..
April
100.0
March
November
May
100. 0
April
June
100. 0
May
1938
January
July
August
100.0
June
100.0
July.
September
100.0
August
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
392
CONCENTRATION OF ECONOMIC POWER
Table 239. — Common brick
REGION II. MIDDLE ATLANTIC
[Retail price index— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January _
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1936— Continued
September..
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1938— Continued
March
100 0
February
October
100.0
March
November
May
100 0
April
December
100.0
May
1937
January
July
100.0
June
August
100 0
July
100.0
August
February
100.0
September
March
November
100.0
October
April - . ..
100.0
November
May
1939
December
June..
July .. ..
100.0
1936
August
February. .
100.0
January
September
103.4
February
October . .
April
103.4
March
November
May
103. 4
April
December
1938
January
100.0
May
July
100.0
June
100.0
July
100 0
August
February.
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 240. — Common brick
REGION III. EAST NORTH CENTRAL
IRetail price index— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May...
June
July.
August
September...
October
November...
December
1936
January
February
March.
April
May.
June
July..
August.
Retail
index
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
April
May
June
July
August
September..
October--
November
December
1938
January
February.
Retail
index
93.9
93.9
93.9
98.0
98.3
98.3
99.9
100.2
100.2
100.2
100.2
100.2
100.2
100.2
Year and month
1938— Continued
March
April
May _
June
July
August
September
October ._
November
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
100.2
100.2
100.2
100.2
100.2
99.8
99.8
100. 0
100.0
100.0
100.0
100. 0
100.0
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
393
Table 241. ^Common brick
REGION IV. WEST NORTH CENTRAL
[Retail price index— July-September 1939 = 100.0]
Year and month
1935
January
February
March
April
May
June_
July
August
September...
October.
November...
December. . .
1936
January
February
March..,
April
May...
June.
July
August
Retail
index
105.4
105.4
105.4
105.4
105.4
105.4
105.4
103.3
103.3
103.3
103.3
103.3
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
April
May
June
July
August
September.
October
November
December
1938
January
February.-
Retail
index
103.4
103.4
103.4
103.4
103.4
103.4
105.3
104.5
104.5
104.5
104.5
103.5
102.4
102.4
102.4
102.4
102.4
101.3
Year and month
1938— Continued
March
April
May
June .- -.
July
August
September
October .,
November
December
1939
January
February
March .
April
May
June
July
August
September
Retail
index
100.2
100. 2
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
100.2
100.2
100.2
100.2
100.2
100.2
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 242. — Common brick
REGION V. SOUTH ATLANTIC
[Retail price index— July-September 1939 = 100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
98.1
98.1
98.1
98.9
98.9
98.9
99.0
99.0
99.0
99.0
99.0
99.0
99.4
99.4
99.4
99.4
09.4
99.4
09.4
00.4
1936— Continued
September
99.4
99.4
99.4
99.4
99.7
99.7
100.2
100.2
102.0
102. 0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
1938— Continued
March
101.5
February..
October
April ..
101 5
March
99.6
April
December
1937
January
June
99 6
May...
July
99 6
June
100.2
July
September...
October.
November
December
100 2
August
February.
100.2
September
March
100.2
October
April
May -
100 2
November ^
1939
January.
December
June
July
101.2
1936
August
February
101.2
January
September
October
November.
December
1938
January
March
April
101.2
February
101.2
March
May..
101.2
April..
101.2
May
July
101.2
June
August
Septem ber
101 2
July
99.7
August
Specification; Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
394
CONCENTRATION OF ECONOMIC POWER
Table 243. — Common brick
REGION VI. EAST SOUTH CENTRAL
[Retail price index— July-September 1939= 100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
103.2
1936— Continued
September
October
November
December _
1937
January
February
March...
April
May 1
June
July
August
September
October
November
December
1938
January . -
103.2
103.2
103.2
103.2
103.2
103.2
103.2
,103.2
103.2
103.2
103.2
-103. 2
103.2
103.2
103.2
103.2
101.7
101.7
1938— Continued
March...
101.7
February
March...
April- - --
May . .-
101.7
101.7
April.. -.
Tnnp
101 7
May..
June
July- ....
100.0
100.0
July
August ..
September
October
November
100.0
100.0
September
100.0
October
December
100.0
November
December
1939
January.-.
February.-
March -
April ..
1936
January
100.0
100.0
100.0
February _
100.0
March..-
May.-
June
July
100.0
April
100 0
May ... .
100.0
June . -
August
September.
100.0
July
100.0
August
February..
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 244. — Common brick
REGION VII. WEST SOUTH CENTRAL
[Retail price index— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January . . .
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.7
1936— Continued
September-
95.7
95.7
95.7
95.7
95.7
95.7
95.7
82.8
82.8
82.8
82.8
82.8
82.8
82.8
82.8
82.8
87.1
87.1
1938— Continued
March-
95.7
February
April-
95.7
March
November
May
95.7
April ...
June--
95.7
May
1937
January -]
July
100.0
August
100.0
July
September
October
November
100.0
August
February
100.0
100.0
October-
April
December.- . .
100. 0
November . -
May
1939
January ^-
February
March
April
May -.
June
July..... -
August --
September
July
100.0
1936
January
August. J
September
100.0
100.0
100.0
March
April
May.
November
December
1938
January
February
100.0
100.0
100.0
June
July
August -
100.0
100.0
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
395
Table 245. — Common brick
REGION VIII. ROCKY MOUNTAIN
[Retail price index— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January --
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
37. i
97.4
97.4
97.4
97.4
97.4
95.6
95.6
95.6
1936— Continued
September
95.6
95.6
95.6
95.6
95.6
95.6
95.0
93.9
93.9
93.6
93.9
93.9
93.9
93.9
92.6
94.9
94.9
94.9
1938— Continued
March
94.9
October...
April
94.9
March.
November
94.9
April
December . .
June
94.0
1937
January
July
94.9
June.
August..
94.9
July
September
94.6
August
February
M ar ch
96.8
September
November
December
1939
January..
February
March _ _
April.. -
May
June
96.8
October .
April ..
96.8
November
May
December
June ...
1936
July
August
96.8
96.8
January
September
96.8
February .
October
November
December..
1938
January
February
100.2
March
100.2
April -
100.2
July
ino 2
Jl'nn , .
August inf) 2
July-
September..
99.6
Specification: Brick, common, building, per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 246. — Common brick
REGION IX. PACIFIC
[Retail price index— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September...
Oc ober
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
Year and month
1936— Continued
September. .*
October..
November..
December.
1937
January
February
March
April
May...
June
July
August
September
October
November
December
1938
January
February
Retail
index
Year and month
1938— Continued
March
April
May
June
July...
August.
September
October..
November
December
1939
January
February
March
April
May
June.
July.
August
September..
Retail
index
93.8
93.8
93.8
93.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Brick, common, building; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
2 . 5852 — 41— No. 33-
396
CONCENTRATION OF ECONOMIC POWER
Table 247. — Face brick
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January .-. . ...
94.8
94.8
94.8
94.8
94.8
94.8
95.1
94.9
94.9
94.9
94.9
94.9
95.7
96.0
96.0
96.0
96.0
96.0
96.0
96.0
1936— Continued
September
October
96.0
96.0
96.0
96.1
96.0
96.0
96.0
97.8
97.9
97.9
97.9
97.9
97.9
99.3
99.3
99.5
99.3
99.3
1938— Continued
March
99 5
February ^'..
April
99.5
March
November
May..
9^.5
99.5
April
December
June -
May
1937
January
July .
99.3
June
August
100 4
July..
September
October
November
December
100 4
August
100 0
September
March
100.0
October... .
April .
100 0
November
May.. . ...
1939
January
February -
December
June
July..
100.0
1936
August
100.0
January
September .
March
April
May
June .
July
August
September
100.0
February...
October...
100. 2
March
November
December
100.2
April
100.2
May
1938
January
February
100. 2
June
100.0
July
100.0
August.
Specification: Brick, face, standard eolonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 248. — Face brick
REGION I. NEW ENGLAND
[Retail price indexes— July-September 1939 = 100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
96.1
96.1
96.1
96.1
96.1
96.1
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
95.9
1936— Continued
September - -
October -.
November
December
1937
January -
February
95.9
95.9
95.9
95.9
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
99.6
100.0
1938— Continued
March
April
May
.Tune
100.0
February.
100.0
March
100.0
April
100.0
May
July -
August
100.0
June
100.0
July
September
100.0
August . -
100.0
September
March . .. .
November
100.0
October
April
100.0
November
1939
January - - -
February
December
June
July
100.0
1936
August
100.0
January
September :
100.0
February
October
April
100.0
March
May
June . .
100.0
April
December
100.0
May
1938
January
July- -- --
August
100.0
.Tntift
100.0
July
September
100.0
August.- - -..
February.. . .
Spedflcatlon: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
397
Table 249. — Face brick.
REGION II. MIDDLE ATLANTIC
[Retail Price Indexes— July-September 1039=100.0]
Year and month
1935
Jamiary
February
March
April
May
June
July :.
August
September...
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
1.8
95.8
95.8
95.8
95.8
95.8
95.8
95.8
95.8
Year and month
1936— Continued
September
October.
November
December
1937
January
February
March ,
April
May
Jime..
July
August
September
October...
November
December
1938
January :.
February
Retail
index
95.8
95.8
95.8
95.8
95.8
95.8
95.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1938— Continued
March
April
May
June
July
August
September
October
November
December
1939
January
February
March... ,
April
May
June
July :
August
September
Retail
Index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 250. — Face brick
REGION in. EAST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June...
July....
August
September...
October
November...
December...
1936
January ^.
February
Mareh
April
May
June
July
August
Retail
index
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
87.4
92.7
95.2
95.2
95.2
95.2
95.2
95.2
95.2
Year and month
1936— Continued
September...
October
November
December
1937
January...
February
March
April
May
June
July..
August
September
October..
November
December
1938
January
February
Retail
index
95.2
95.2
95.2
95.2
95.2
95.2
95.2
95.2
96.2
96.2
96.2
96.2
96.2
96.2
96.2
96.2
96.2
96.2
Year and month
1938— Continued
March
April
May
June. ..
July
August
September
October
November
December.
1939
January
February..
March
April
May
June
July
August
September
Retail
index
90.2
96.2
96.2
96.2
96.2
103.6
103.6
101.0
101.0
101.0
101.0
101.0
101.0
101.5
101.5
101.6
101.5
100.0
100.0
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
398
CONCENTRATION OP ECONOMIC POWER
Table 251.^ — Face brick
REGION IV. WEST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
February
March
April
May
June
July -
August
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
104.0
1936— Continued
September
October
November
December
1937
January
February
104.0
104.0
104.0
104.0
104.0
104.0
104.0
100.9
100.9
100.9
J00.9
100.9
100.9
100.9
100.9
100.9
101.0
101.0
1938— Continued
March
April
May..
June
July
August
September
October
November
December
1939
January..
February
March
April
May
June
July
August
September
101.0
101.0
101.0
101.0
99.9
99.9
99.9
99 9
September...
October
November
December
March
April
May ...
June
July...
August .
99.9
99.9
1936
99.8
99.8
January
February
March
April
May
June
July...
September
October
November
December
1938
January.
February
99.8
99.8
99.8
99.8
99.8
99.8
100.3
August...
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 252. — Face brick
REGION V. SOUTH ATLANTIC
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
99.0
99.0
99.0
99.0
99.0
99.0
101.5
101.5
101.5
101.5
101.5
101.5
101.5
101.6
101.5
101.5
101.5
101.5
101.5
101.5
1936— Continued
September
October
November
December.
1937
January
February
March
April
May..
June
July
August...
September..
October.
101.5
101.5
101.6
101.5
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
99.9
98.9
98.9
1938— Continued
March
April
May .i...
June
July
August
September
October
November
December
1939
January
February...
March..
April
May...
100.0
February
100.0
March
April
100.0
100.0
May
100.0
June
100.0
July.
100.0
August
100.0
September
October .
November
December
1936
January .
100.0
100.0
100.0
100.0
100.0
February
100.0
March
100.0
April
December
1938
January
February
June
July.-..
August..
September
100.0
May
100.0
June
100.0
July
100.0
August :
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWEIl
Table 253. — Face brick
REGION VI. EAST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
399
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
107.8
107.8
107.8
107.8
107.8
• 107. 8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
1936— Continued
September
October
November..
December
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
107.8
106.5
106.5
1938— Continued
March
April
May J
June .-
July
August
September
October
November.
December
1939
January..
February
March...
April
May
June
July.
August
September.
106.5
February
106.5
March
106 5
April..
106.5
May
1937
January
100.0
June
100 0
July
100 0
August.
February
March
100.0
September
100.0
October
April
May
June
July
August
September...
100 0
November
December
1936
January
100.0
100.0
100.0
February
October..-.
November
100.0
March
100.0
April
May
June . .
December.
1938
January
February...
100.0
100.0
100.0
July..
100.0
.\ugust
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 254. — Face brick
REGION VII. WEST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Vear and month
1935
January
February
March
April
May
June.
July
-Vugust.
September...
' )r'tnher
N'ovember...
December...
1936
January
February
.March
.\pril
.May...
June
July.
.\ugust
Retail
index
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
.\pril.
May
June
July
August
September...
October
November
December .
January.
February.
1938
Retail
index
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101. 2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
Year and month
1938— Continued
March
April
May
June...
July
August.
September
October
No vem ber
December.-
1939
January.
February
March ..
April
May
June ..
July
August
September
Retail
index
101.. 2
101.2
101.2
101.2
1<)0.0
IDO.O
.100. 0
lliO.O
100.0
lUO. 0
iiin. 0
100.0
KW.O
100.0
100.0
100.0
100.0
100.0
100.0
SpeciDcation: Brick, face, standard colonial roil, .smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
400
CONCENTRATION OF ECONOMIC POWER
Table 255. — Face brick
f Retail price indexes— July-September 1939 = 100.0]
REGION VIII. ROCKY MOUNTAIN
Year and nlontb
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
93.1
93.1
93.1
93.1
93.1
93.1
93.1
84.1
84.1
84.1
84.1
84.1
84.1
84.1
84.2
84.2
84.2
84.2
84.2
84.2
84.2
1936— Continued
October
84.2
84.2
86.4
86.4
86.4
86.4
87.5
87.5
87.5
87.5
87.5
87.5
87.5
87.5
92.0
92.0
92.0
1938— Continued
March
92 0
February...
November.
April
94.2
Hareh
December ..
May..
94 2
April..
1937
January
June
94 2
Slay..
July
94 2
June
August
94 2
July
February
September
94 2
August
March .. . ..
October
94 2
September
AprU
November.-
December
94 2
October.--
May
94 2
November.
June - .-
1939
January
December.
July . . .
August
94.2
1936
September
February..
94.2
January...
October
March
94.2
February
November
December
AprU
100 0
March..
May
100.0
April...
May ,
1938
January
February
June .-
July'
100.0
100 0
June .
August
September
100 0
July
100 0
August
September
Specification: Brick, face, standard colonial red, smooth; per M.
Retail: Producer or dealer to contractor, delivered to job site, city.
Table 256. — Face brick
REGION IX. PACIFIC COAST
[Retail price indexes— July-September 1933=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January.
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
1936-Continued
September
,87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
87.7
o7.7
87.7
87.7
100.0
100.0
100.0
100.0
100.0
1938— Continued
March -.
100.0
February
October
April . . .
100.0
March
November
December
May
100.0
April
.Tiinft
100.0
May ■.
1937
Jfttiiiftry
July.
100.0
Juno
August
100.0
July
100.0
August... ..
February
October ..
100.0
September...
March
■ November
100.0
October -
AprU -
December .
100.0
November
May ....
1939
January _
December
June .
July
August\..
September
October
November. .
December
1938
January
February
100.0
1936
February...
100.0
January
March . . .
100.0
February
AprU
100.0
March ,
May ... ...
100.0
April
June
100.0
May -
Xnne
July , -.-.-.
A ugust
100.0
100.0
July.
September
100.0
Augu.st
Specification: Brick, face, standard colonial red, smooth; per M.
RetaU: Producer or dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
401
Table 257. — Hollow building tile
COMPOSITE UNITED STATES AVERAGE
[Wholesale and retail price indexes— July-September 1939=100.0]
Year and month
1935
January..
February
March
April
May
June
July
August...
September..
October
November
December
1936
January... -
February
March
April
May
June
July
August
September
October.
November
December
1937
January
February
March
April -.
May
Index
Whole-
sale
Retail
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.0
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.5
99.2
99.6
99.6
99.7
99.6
99.7
Year and month
1937— Continued
June. -
July
August
September
October
November
December
1938
January
February
March
April -
May _.
June
July... - _-..
August. - :
September
October
November
December
1939
January.
February
March
April
May...
June...
July
August - -
September
Index
Whole-
sale
99.6
99.6
99.6
99.6
99.8
99.8
99.9
99.9
99.9
99.9
99.9
99.9
100.0
100.0
100.0
100 0
loao
lOQO
Retail
99.7
99.7
99.7
100.0
100.0
100.0
100.0
100.1
100.1
100. 1
100. 1
100.1
100. 1
100, 1
100.1
100.1
100.1
100.1
100.1
99.8
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Tile, hollow building, partition, 4 by 12 by 12 inches, 3 cell, scored, 16 pounds weight; per M .
Wholesale: Producer to contractor, delivered to job.
Retail: Producer or dealer to contractor, delivered to job site, city.
402
CONCENTRATION OF ECONOMIC rOWEll
Table 258.— Fioor tile
COMPOSITE UNITED STATES AVERAGE
[Wholesale price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May...
June
July....
August
September. --
October
November ..
December. . .
1936
Jana;iry
February. -
March.
April
May
June
July....
August
Whole-
sale
index
108.
103.
103.
103.
103.
103.
103.
107.
107.
107.
107.
107.
107. S
107.0
107.0
107. 0
107.0
107.0
107.0
107.0
Year and month
1936— Con.
September
October
November
December
1937
January
February
March
April
May
June
July
August
September
October
November
December
1938
January.
February
Whole-
sale
index
107.8
107.8
107.8
99.2
99.2
99.2
108.3
108.3
109.1
109.1
109.1
109.1
100-0
100-0
100-0
109-1
109-1
109-1
Year and month
1938— Con-
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April..
May
June
July
August
September
Whole-
sale
index
100-0
100-0
100-0
100-0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Tile, floor, 1-inch hexagon, standard grade, color group 1 (white, red, or gray); per square
foot.
Wholesale; Producer to contractor, delivered to job.
Table 259. — Sewtr pipe
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March
.\pril
May
June -.
July..
August
September ..
October
November...
December .
1936
January
February
March
April.-
May...
June
July
August
Retail
index
91.8
91.3
91.3
91.6
91.6
91.6
91.6
91.6
Year and month
1936— Con
September
October ..
November
December
1937
January
February
March
April.-
May
June.
July
August
September
October
November
December-
1938
January
February
Retail
index
91.6
91.5
91.5
9.3.6
94.3
95.0
95.0
95.0
95.0
95.0
95.0
95.0
95.0
95.0
95.2
93.2
93.1
Year and month
1938— Con.
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
93.4
93.4
93.4
93.3
93.3
93.3
93.3
93.3
93.3
93.3
09.7
99.7
99.9
100.0
100. 0
100.0
100.0
100.0
100.0
Specification: Pipe, sewer, 6-inch vitrified; per foot.
Retail: Producer or dealer to contractor, delivered to job site, city.
CHAPTER XXIII
WINDOW GLASS
DESCRIPTION OF THE INDUSTRY
The production of window glass in the United States increased
greatly in 1937 as compared with 1935. The value of product in-
creased to $31,000,000 from $18,000,000 in these 2 years and the
physical volume of production increased in about the same proportion.
The following summary shows the volume and value of products, as
pubhshed by the Census of Manufactures, "Glass," for the years
indicated.
Table 260. — Production of window glass
Production
Year
Square feet
Value
Plant value
(50 square
feet)'
1925 ---
567, 150. 590
481,021,350
402, 558, 961
266,772,159
249, 442, 799
428, 938, 357
616. 566, 127
$37, 524, 728
26, 813, 507
25, 962, 167
10, 307. 396
10.456,883
18, 180, 053
31, 389, 468
$3 31
1927
2.79
1929
3 22
1931
1 93
1933
2. 10
1935 -
2.12
1937
2 55
' Wholesale prices are quoted on boxes of 50 square feet.
The most important States in the production of window glass are
Pennsylvania, Ohio, West Virginia, Indiana, Arkansas, Louisiana, and
Oklahoma. Definite data on relative importance of the above States
are not available. In 1935, 13 plants were active, located as follows:
5 in West Virginia, 3 in Pennsylvania, and 1 each in Louisiana, Okla-
homa, Ohio, Arkansas, and Indiana. West Virginia nnd Pennsyl-
vania together produced more than two-thirds of th(> total output,
while the other States ranked in the order named.
The production of glass is concentrated in a few companies. The
Department of Commerce leports that four companies produce 85
percent of the national output. In 1935 over 75 percent of the total
was produced by three companies. Since 1935 some of the smaller
companies have merged and at present this new company and the three
companies previously mentioned constitute practically the entire
window gl-ass industry.
Three standard grades of window glass are manufactured — "AA,"
"A," and "B" — and each grade may be obtained in either single or
double strength. The grade priced for this survey was window glass,
single strength, B, 40-inch bracket, per 50 square feet, packaged, in
403
404 CONCENTRATION OF ECONOMIC POWER
carlots. "Bracket" denotes the size of a sheet of glass in "united
inches," that is, the sum of the length and width. For example, a
sheet measuring 10 by 15 inches would be included under the 25-inch
bracket, one. measuring 20 by 30 inches in the 50-inch bracket, and
one 20 by 20 inches in the 40-inch bracket. The glass is commonly
packaged in lots of approximately 50 square feet per box.
PRICE STRUCTURE
Price Lists.
A standard basic price list for common window glass is used
throughout the industry. Prices to the wholesale trade are quoted
in terms of discounts from this list price, varying with size, quality,
and thickness of glass.
Channels of Distribution.
Manufacturers' sales are usually made to distributors in carlot
quantities (500 to 700 boxes). The distributor sells to the dealer in
less-than-carlot quantities, and the dealer in turn to the building
contractor. In a few large cities glass is installed in the sash at the
job site.* Usually the distributor is the only one equipped for large-
scale glazing. The retail dealer may do the glazing for residential
construction. Much of the window glass is heavy, and the freight
cost is an important element in the destination price.
Freight Equalization.
Manufacturer-to-distributor sales are made in carlots, freight
usually equalized with nearest competitor (nearest to buyer, freight-
wise). In other words, a customer buying glass from any producer
pays the same freight charges he would have paid if he had pur-
chased from the nearest plant. The rest of the freight charge is
absorbed by the seller. In some sales, the manufacturer may
absorb much of the freight cost. For example, if a buyer in Kansas
City purchases from a producer in Clarksburg, W. Va., the freight
rate is 70 cents per 100 pounds. However, since the nearest plant is
at Henryetta, Okla., with a rate of 29 cents per 100 pounds to Kansas
City, the difference of 41 cents per 100 pounds, or about 31 cents per
box of glass, is absorbed by the seller. Of course, the producer may
not make sales at points where freight absorption is prohibitive. The
points of freight equalization in 1939 were Belle Vernon, Jeannette,
and New Kensington, Pa.; Charleston and Clarksburg, W. Va.;
Moimt Vernon, Ohio; Vincennes, Ind.; Fort Smith, Ark.; Shreve-
port, La.; and Henryetta, Okla. Freight rates from two or more
of these points to a specified destination may be the same, due to
zone freight rates and other special rulings of the Interstate Com-
merce Commission. The usual carlot shipment is a minimum of
40,000 pounds, but the weight may range from 30,000 to 60,000 pounds.
Table 261 shows the freight cost, to the purchaser, of a 75-pound box
of glass (50 square feet), by cities, the percent of delivered price
represented by freight, and the number of factory points to which
the minimum rate is applicable.
> This is usually true only where the labor union organization is strong and can force the Contractors to
have the glazing done on the job as in Chicago, Dl., an(l .Cleveland, Ohio.
CONCENTRATION OF ECONOMIC POWER
405
Table 261. — Transportation costs in the shipment of windoU) glass to selected cities,
September 1939
Region and city
Factory
points '
Freight cost per box
Amount
Percent of
delivered
price
Region I (New England):
A. Portland, Maine
B. Manchester, N. H
C. Burlington, Vt
D. Boston, Mass
E. Providence, R. I
F. Hartford, Conn
Region II (Middle Atlantic):
A. New York, N. Y
B. Trenton, N.J
C. Philadelphia, Pa
Region III (East North Central):
A. Cleveland, Ohio
B. Detroit, Mich
C. Indianapolis, Ind
D. Chicago, Ill_..
E. Milwaukee, Wis
Region IV (West North Centra!):
A. Minneapolis, Minn
B. Fargo, N. Dak
G. Sioux Falls, S. Dak
D. Des Moines, Iowa
E. Omaha, Nebr
F. Wichita, Kans _
Q. St. Louis, Mo
Region V (South Atlantic) :
A. Wilmington, Del..
B. Baltimore, Md ...
C. Washington, D. C
D. Charleston, W. Va
E. Richmond, Va
F. Charlotte, N. G
0. Charleston, S. G
H. Atlanta, Ga..
1. Miami, Fla ^
Region VI (East South Central) :
A. Louisville, Ky
B. Memphis, Tenn. ■..
C. Birmingham, Ala
D. Jackson, Miss
Region VII (West South Central):
A. Little Rock, Ark
B. Oklahoma City, Okla.
C. Austin, Tex
D. Houston, Tex...
E. New Orleans, La
Region VIII (Rocky Mountain):
A. Butte, Mont
B. Boise, Idaho
C. Cheyenne, Wyo
D. Denver, Colo
E. Salt Lake City, Utah
F. Reno, Nev.
O. Phoenix, Ariz...
H. Albuquerque, N. Mex
Region IX (Pacific):
A. Seattle, Wash
B. Portland, Oreg
C. Los Angeles, Calif.. 1
1-6-8
1-6-7-8
7
1-6-7-8
1-6-7-8
1-6-8
1-6-8
1-6-8
1-6-8
7
7
10
10
10
10
10
4-5
4-5
4-5
4-5
10
1-3-6-8
3
3
2
2
2
10
3-10
10
4-9
10
4-5-9
4-9
5
4-5-9
4-5-9
4-5-9
4-5
4-5-9
4-5-9
4-5-fl
4-6-9
4-5-9
4-5-9
4-5-9
$0.39
.37
.37
.37
.37
.33
.30
.28
.27
.18
.20
.18
.23
.26
.45
.59
.54
.34
.40
.25
.19
.27
.24
.24
w
.28
.36
.46
.43
1.73
.18
.25
.40
.27
.25
.19
.33
.26
.25
.54
.54
.54
.47'
.54
.54
.54
.54
..54
.54
.54
• Key to factory points: 1. Belle Vernon, Pa.; 2. Charleston, W. Va.; 3. Clarksburg, W. Va.; Pa.; 4. Fort
Smith, Ark.; 5. Henryetta. Okla.; 6. Jeannette, Pa.; 7. Mount Vernon, Ohio; 8. New Kensington, Pa.;
9. Shreverwrt, La.; 10. Vincennes, Ind.
' Shipping point.
' Some of the shipments to Miami are by combination rail-water for which the cost per box of glass is
54.5 cents as compared to 73 cents by all rail.
406
CONCENTRATION OF ECONOMIC POWEK
Plants have been located, so far as supplies of raw materials and
fuel permit, in various sections of the country primarily for the pur-
post of minimizing the freight charges.
PRICE LEVELS AND TRENDS
Geographical Variations.
Despite the varying freight costs to cities covered by this survey,
the delivered prices were limited to a relatively small range. Freight
costs varied from zero in Charleston, W. Va., a factory point, to 73
cents per box for Miami, Fla. These two cities also represented the
extremes of delivered prices, $2.10 and $2.79, respectively, for a box
of 5.0 square feet, 40-inch bracket glass. The following summary
shows the distribution of cities according to delivered wholesale prices :
Range of typical prices
Less than $2.25
$2.25 to $2.29...
$2.30 to $2.34...
$2.35 to $2.39...
$2.40 to $2.44...
$2.45 to $2.49...
Number
of cities
Range of typical prices
$2.50 to $2.54..
$2.55 to $2.59..
$2.60 to $2.64..
$2.65 and over-
Total....
Number
of cities
The large number falling in the $2.60 to $2.64 range represents
chiefly Rocky Mountain and Pacific cities with high freight costs.
Price Trends. (See chart XXXVII and table 262.)
The general trend of wholesale prices of window glass has been up-
ward over the period covered by the survey. There was no great
increase in price at any time, the sharpest advance of the period being
4 percent in May 1936. Other increases were 3 percent in January
1936 and less than 1 percent in January 1937 and January 1938.
At no time during the period, January 1935 to September 1939, did
prices decline. The Bureau's index of wholesale delivered prices of
window glass for the United States, based on July to September 1939 =
100, was 92 through 1935. The index reached a level of 100 in Janu-
ary 1938, with no other changes through September 1939.
The indexes for the various regions followed the same pattern as
the composite index, with only very slight variations, possibly due to
changes in freight costs.
Many difficulties were encountered in obtaining comparable retail
price data, and hence only fragmentary information is available.
The trend data indicate, however, that consumers' prices of glass are
held rigid over long periods.
INDEX
120
I 10
100
CONCENTRATION OF ECONOMIC POWER
Chart XXXV 11
WINDOW GLASS
WHOLESALE PRICE INDEXES
JULY- SEPTEMBER 1939=100
COMPOSITE - UNITED STATES AVERAGE
407
;^
INDEX
120
90
1935 1936 1937
UNITED STATES BUREAU OF LABOR STATISTICS
100
90
80
1938
1941
Table 262. — Window glass
COMPOSITE UNITED STATES AVERAGE
[Wholesale price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
.\pril
May
June
July
August
September...
October
November...
December
1936
January
February
March
April..
May
June
July
August
Wholesale
index
92.1
92.1
92.1
92.1
92.1
92.1
92.1
92.1
92.1
92.1
92.1
92.1
94.6
94.6
94.6
94.6
98.7
98.7
98.7
98.7
Year and month
1936— Continued
September..
October ._
November
December
1937
January.
February
March
April ;
May
June --.
July
August --
September...
October
November.
December
1938
January
February
Wholesale
index
98.7
98,7
98.7
98.7
99.1
99. 1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
99.1
100.0
100.0
Year and month
1938— Continued
March
April
May
June
July
August
September.-
October
November..
December
1939
January.-
February
March
April
May
June..
July
August
September.
Wholesale
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
ICO.O
100.0
Specification: Olass, window, single strength, B quality, 48-inch bracket.
Wholesale: Per 50 square feet, packaged, carlots.
CHAPTER XXIV
SAND, GRAVEL, AND CRUSHED STONE
DESCRIPTION OF THE INDUSTRY
Sand, gravel, and crushed stone are the prmcipal aggregate materials^
used with cement to make concrete. It has been estimated that four-
fifths of all sand and gravel produced commercially goes into some
form of building or highway construction and about half is used with
cement in concrete.^
Approximately 18,500 men were employed producing sand and
gravel in 1934 in an average work year of 168 days.^ Forty-eight
million tons of sand were sold by commercial producers in 1938,
23,000,000 tons of which were used in building. Fifty-seven million
tons of gravel were sold by commercial producers in 1938, 29,000,000
tons of which were used in building. In 1938 commercial sand sold
or used by producers was valued at $32,000,000 at the pit, while
gravel was valued at $33,000,000. In addition, 89,000,000 tons of
crushed stone classified as "concrete and road metal" were produced
in 1938, valued at $84,000,000. In ia29, the peak year in the sand
and gravel industry, the value of 220,000,000 tons of all types of sand
and gravel produced totaled about $133,000,000.^
With materials abundant and transportation costs high, sand,
gravel, and crushed stone are produced over a widely scattered area.
In 1937 and 1938 production was reported in every State in the Union.
In the latter year the largest producing State, New York, accounted
for only 7 percent of the Nation's total. The small plant is the most
typical unit in the sand and gravel industry. In 1938, 57 percent of
all active plants produced less than 25,000 short tons and accounted
for 10 percent of the total production, while 44 percent of the total
product came from plants producing 100,000 tons or less.
PRICE STRUCTURE
Almost all sand, gravel, and crushed stone (85 percent of sand and
gravel, 90 percent of crushed stone) produced is sold direct by the
producer to the user, including contractors, governmental agencies,
railroads, and ready-mixed concrete producers. Some sales are made
through building material dealers, particularly in such areas as New
York City, but in these instances, the dealer may not actually handle
tlie materials but acts merely as a 'salesman or commission agent.
PRICE LEVELS AND TRENDS
Price Levels.
Because of the wide variety in qualities of sand, gravel, and
crushed stone deposits, specifications for pricing purposes are of
' U. S. Bureau of Mines, Minerals Yearbook, 1936, p. 846.
•Ibid., p. 844.
> U. S. Bureau of Mines, Minerals Yearbook, 1939, "Sand and (rravpl." pp. 1 163, 1164.
409
410
CONCENTRATION OF ECONOMIC POWER
necessity general, in many areas only the so-called "pit run" sand
is sold because of relative nearness to consuming centers and pro-
hibitory freight rates on other types. In other cities, different
qualities of these materials are sold at varying prices. Geographical
differentials, therefore, are differentials not only in price but in
quality. Quality differentials were eliminated as much as possible
in this survey by specifying )^-inch concrete sand, and l}^-inch
gravel and stone.
Although regional differentials are attributable in part to differ-
ences in quality, they are primarily a reflection of a wide variety of
local competitive and supply situations. The wide range of prices
for these materials is shown in the following summary:
Range (price per ton) '
$0.51 to $0.75
$0.76 to $1.00
$1.01 to $1.25
$1.26 to $1.50
$1.51 to $1.75
$1.76 to $2.00
Number of cities
Sand
Gravel
Crushed
stone
2
12
6
2
17
8
1
3
7
3
3^
6
8
3
1
5
Range (price per ton)
$2.01 to $2.25..
$2.26 to $2.50.-
$2.51 and over
Total...
Number of cities
Sand
Gravel
Crushed
stone
' Priced per ton or per yard in accordance with local custom but converted to per ton basis in all cases.
Sand prices varied from between 50 and 75 cents per ton to as high
as $3.25. Prices for gravel were as low as 76 cents and as high as
$3.74. The price range for crushed stone ran higher, from 76 cents
to $4.20 per ton. Marked regional differentials in levels are evident
in the following compilation of averages:
Average of typical
prices
Region
Average of typical
prices
Sand
Gravel
Crushed
stone
Sand
Gravel
Crushed
stone
I. New Eneland
Per
toni
$0.88
1.29
1.23
.92
1.70
Per
ton '
$1.18
1.72
1.33
2.01
2.39
Per ton '
$1. 7.=i
2.00
2. OS
1.93
2.80
VI. East South Cen-
tral
VII. West South Cen-
tral
VIII. Rocky Mountain. .
IX. Pacific
Per
ton •
$1.55
1.49
1.25
1.39
Per
ton I
$2.32
2.07
1.04
1.23
Per ton i
11. Middle Atlantic
ni. East North Central ..
IV. West North Central..
V. South Atlantic
$3.00
.2.51
1.63
1.55
' Priced per ton or per yard in accordance with local custom but converted to per ton basis in all eases.
In the case of all three materials, the highest regional average was
approximately double the lowest. Highest prices were reported from
the East South Central, West South Central, and South tlantic
areas; lowest prices in New England, West North Central, Rocky
Mountain, and Pacific regions.
Price Trends.
Because of important geographical differentials in trends, the na-
tional composite of the aggregate material prices fails to represent the
movements in any of the regions.
CONCENTRATION OF ECONOMIC POWER /^H
STONE
Except for an upward spurt late in 1935, which collapsed almost
immediately, the national composite of crushed stone prices (see chart
XXXVIII and tables 263 to 272) dropped by gradual stages in 1935
and 1936, falling 6 percent during these 2 years. In 1937 the index
rose by a total of 15 percent, held fairly stable through 1938, dropped
10 percent early in 1939, and held at that level through September.
In New England only one major price change was reported, a 10
percent increase late in 1936. In the West North Central area, two
price changes in 1936 resulted in a 10 percent rise. In the South
Atlantic region the index fell from 100 to 91 in 1938 and recovered
to 100 in 1939. In the West South Central States, a 10 percent
price increase took place late in 1938. No changes were reported
during the entire period in the East South Central or the Rocky
Mountain regions.
Much greater flexibility in price was reported from the East North
Central and Pacific areas. In the former, the index dropped from 110
in 1935 (based on the July to September 1939 average=100) to 103
in 1936 and then rose to 112 early in 1937, declining to 95 later in the
year. Following a further drop to 91 in 1938, the index rose to 100 in
1939. In the Pacific area, the index started at 140 in 1935, dropped to
130, and rose to 162 later in that year. It then fell to 117 in 1936
and later in the same year to 113, then rising in successive jumps to
187 in 1937, and again falling slightly to 175 in 1938. In 1939, due
to a "price war,'' the index fell over 40 percent in February to 102,
later dropping still further to 99.
GRAVEL
The national composite index of gravel prices (see chart XXXIX
and tables 273 to 282) reveals three major movements between
1935 and 1939. Based on the Jlily to September 1939 average=100,
the index rose from 94 to 101 late in 1937. In November 1938 it
again advanced abruptly to 109 but lost this entire gain early in 1939.
The regional averages, however, show conflicting patterns of behavior.
Prices remained virtually unchanged throughout the entire period
in the South Atlantic and East South Central States. In New Eng-
land three price changes in 1936 and 1937 brought the index down 11
percent from 112 to 100. In the West North Central area, two in-
creases in 1935 and 1936 brought the index up 5 percent to 100, a
level which remained unchanged for the 3 remaining years covered
by the study. In the West South Central States gravel prices de-
clined slightly every year, falling a total of 10 percent during the
period. Price changes in the Rockj^ Mountain area w^ere infrequent
and narrow, the index rising once and falling three times for a net
decrease of 6 percent. In the Middle Atlantic area the price rose
twice in 1937 and 1938, making a total increase of 33 percent, the
larger rise coming in 1938.
In the East North Central region prices dropped every year from
1935 through 1938, with a net decline of 16 percent. In the Pacific
oT-ea the index declined from 146 to 136 and rose to 170 in 1935.
275852 — 41— No. 3?, — 28
412
CONCENTRATION OF ECONOMIC POWER
Chart XXXVIII
CRUSHED STONE
RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939=100
NDEX
120
110
100
90
UNITED
STATES
-WtighKd Avaroge Price
-^t
\
J
■^.
U^
rH
RE8I0N T - SOUTH ATLANTIC
REGION I- NEW ENGLAND
i 1
REGION n MIDDLE ATLANTIC
REGION
in- EAST NORTH CENTRAL
i
^
-J\
L_
^\S
J
1
120
no
100
REGION
nr- WEST NORTH CENTRAL
r-^
90
1935 1936 1937 1938 1939 1940 1941
IITEO STATES BUREAU OF LABOR STATISTICS
REOION Yl - EAST SOUTH CENTRAL
REGION IX - PACIFIC
REGION
ni - WEST SOUTH CENTRAL
1
REGION Xni
- ROCKY MOUNTAIN
1935 I93e 1937 1938 1939 1940 l«4l
CONCENTRATION OF ECONOMIC POWER
413
Chart XXXIX
GRAVEL
RETAIL PRICE INDEXES
JULY- SEPTEMBER 1939 » 100
UNITED STATES- W«lght«d A»trej» Prlc« REGION I - SOUTH ATLANTIC
1 10
100
-^1
V.
— =^?
I .
«^
90
80
70
REGION I
• NEW
ENGLAND
1
'
»T,
REGION n -
MIDDLE ATLANTIC
J
Id
- — *
REGION
m-EAST NORTH CENTRAL
■=^
\ 1
|*=*-=1
K^
KE6I0N
IZ- WEST NORTH CENTRAL
i
1
I
REGION
XI - EAST SOUTH CENTRAL
1
1
REGION
Sa - WEST SOUTH CENTRAL
1
"
^
REGION Sm
- ROCKY MOUNTAIN
.^.^
=<^
REGION
JX - PACIFIC
"\_
lU
1j
j
1
ll
1
V
1
1 ..,,
K
220
210
2 00
190
ISO
170
160
150
140
130
120
110
100
1939 1936 1937 1936 1939 1940 1941
UNITED STATES BUREAU OF LABOR STATISTICS
193$ 1936 1937
1939 1940 1941
414
CONCENTRATION OF ECONOMIC I'OWEIt
but declined at first to 122 and then to 118 in 1936. Four incnnvscs
in 1937 brought the index up to 189, but it dropped to 177 in 1938
and tlien broke sharply to 103 and later to 99 in 1939.
SAND
The national composite index of sand prices (see chart XL and tables
283 to 292) moved within a much narrower range, w^th widely diver-
gent regional changes; it eased gradually from 98 in 1935 to 96 early
in 1937, but rose abruptly later in the year to 101, falling back to 98
in 1938. In 1939 it first rose to 102 but then dropped slightly to 100.
Two changes in 1936 were the only ones reported from New England,
the index falling in equal steps from 115 to 100. In the Middle At-
lantic region the index rose slightly in 1937 from 79 to 81 and then
advanced sharply 23 percent to 100 in 1939. In the West North Cen-
tral States the index rose twice in 1936 but declined slightly in 1937
and 1938 for a net increase of 16 percent. In the South Atlantic
States the index fluctuated between a high of 103 in 1935 and a low of
97 in 1938. In the East South Central States the index was unchanged
during the entire period. In the West South Central region the index
held steady until late in 1938 when it rose from 124 to 127, only to
drop 21 percent in 1939. Four price declines in the Rocky Mountain
area resulted in a gross decrease of 9 percent during the 5 years.
In the East North Central States the index fell steadily from 1935
to 1938, dropping from 122 to 98, and then recovered slightly to 100
in 1939. In the Pacific area the index dropped from 121 in 1935
to 108 in 1936, rose sharply to 158 in 1937, but fell even more sharply
in 1938 and 1939 to the base period level of 100.
Table 263.- — Crushed stove
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.01
Year and month
1935
January
February
March
April
May...
June
July 1----
August
September
October
November
December
193R
January
February
March
April
May
June.-
July
August
September
Retail
index
102.5
102. 5
102.5
102.5
102.5
102.5
102.5
99.7
99.7
100.6
105.4
106.0
101.9
97.5
97.5
97.5
97.5
97.5
96.5
96.5
96.5
Year and month
1936— Continued
October.-.
November. - - -
December
1937
January
February
March
April
May
June
July
August
September
October
November
December
January.
February.
1938
Retail
index
96.5
95.8
96.7
99.5
99.5
99.5
90.5
100.9
99.5
96.8
101.9
101.9
102.8
102.8
108.9
108.8
108.9
Year and month
1938— Continued
March
April .-
May
June
July
August
September
October .
November
December
1939
January .
February
March
April
May...
June
July
August
September
Retail
index
108.9
107.9
107.3
107.3
107.3
105. 9
105.9
106. 6
106.6
107.1
107.1
107.1
98.6
99.2
100.3
100.3
100.3
99.9
99. 9
Specification: Stone, crushed, coarse aggregate for concrete, l\i inches maximum; per ton. (Priced per
ton or per yard in accordance with local custom but converted to per ion basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
CONCENTltATlON OK ECONOftllC POWER
415
Chart XI.
SAND
RETAIL PRICE INDEXES
JULY - SEPTEMBER 1939 -=100
UNITED STATES - WtighUd A»trog« Prict REGION I - SOUTH ATLANTIC
REGION I - NEW ENGLAND
^^
REGION n - MIDDLE ATLANTIC
1
^ 1
REGION HI - EAST NORTH CENTRAL
■"^^
^
I—,
^
V— .
REGION XfC - WEST NORTH CENTRAL
REGION 3r - PACIFIC
REGION
3a - EAST SOUTH CENTRAL
1
REGION
311 -
*EST SOUTH CENTRAL
i
.=_^
-=1
Q
i
1
i
REGION -yTTT . ROCKY MOUNTAIN
.
nL_
I93S I9SG 1937 ISM 1939 1940 1941
UNiItD ST«TtS auf>C*U Of l.»BOR SIAIlS'iCS
1933 1936 1937 1936 1939 1940 1941
416
CONCENTRATION OF ECONOMIC POWER
Table 264. — Crushed stone
REGION I. NEW ENGLAND
[Retail price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March
April -
May
June
July
August
September...
October
November.. -
December
1936
January
February
March
April
May
June
July
August
Retail
index
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
91.1
Year and month
1936— Continued
September
October
November
December..
1937
January
February
March
April
May
June
July
August
September .
October .
November
December..
1938
January.-
February...
Retail
index
91.1
91.1
91.1
91.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.0
100.0
Year and month
1938— Continued
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April..
May.
June.-
July
August
September
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Stone, crushed, coarse aggregate for concrete, 13^ inches maximum; per ton. (Priced per
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 265. — Crushed stone
REGION II. MIDDLE ATLANTIC
. [Retail price indexes— July-Septetnber 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1938
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1938— Continued
September..
100.0
100.0
100.0
100.0
100.0
100.0
1939— Continued
March
April
May
100.0
February...
October
November
December....,
1939
January
February
100.0
100.0
June
July :
August
September
100. 0
May
June .-
July
August - -
100.0
100.0
100.0
Specification: Stone, crushed, coarse aggregate for concrete, m inches maximum; per ton. (Priced per
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
CONCKNTRATION OF ECONOMIC POWER
Table 266. — Crushed stone
REGION III. EAST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
417
Year and month
1935
January
February
March
April
May
June
July
August
September. .-
October
November--.
December...
1936
January
February
March
April
May
June ---
July
August -
Retail
index
110.1
110.1
110.1
110.1
110.1
110.1
no. 1
106.1
106.1
106.1
104.5
106.9
106.9
106.9
106.9
106.9
106.9
106.9
103.8
102.8
Year and month
1936— Continued
September
October
November
December. --
1937
January..
February
March
April...
May
June
July
August
September
October.
November
December.
1938
January
February
Retail
index
102.8
102: 8
102.8
102.8
111.8
111.8
111.8
111.8
111.8
106.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
95.1
Year and month
1938— Continued
March
April
May
June
July
August
September. _.
October
November
December
1939
January
February
March
April
May
June
July
August .
September
Retail
index
95.1
95.1
91.1
91.1
91.1
91.1
91.1
95.9
95.9
95.9
95.9
95.9
95.9
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Stone, crushed, coarse aggregate for concrete, lyi inches maximum; per ton.
per ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced
Table 267. — Crushed stone
REGION IV. WEST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January . ... ..
92.2
92.2
92.2
92.2
92.2
92.2
92.2
92.2
92.2
92.2
92.2
92.2
96.7
96.7
96.7
96.7
96.7
96.7
96.7
96.7
1936— Continued
September
96.7
96.7
96.7
96.7
101. 2
101.2
101. 2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
1938— Continued
March .
April
May
June
July . .
lOl 2
February . . .
OctohiT
101 •'
March
November
101 "J
Ai>ril
Di'cciiibiT.
101 2
May - -
1937
January
101 2
June
August _.
September
October
101 2
July
101 ■'
August - .
February
101 2
September
March
April . .
November
101.2
October . .
December
1939
January.
February
101 "J
November
December
May -
June -
July.
100 0
1936
August
1(H) 0
January . .
September .....
March
April
May..
June...
July
August
September
100 U
October
100.0
March . .
November . .
100 0
April
December
100 0
May
1938
January
February
100.0
June .
100 0
July
100 0
August
Specification: Stone, crushed, coarse aggregate for concrete, V/> inches maximum; per ton.
ton or per yard in accordance with local custom but converted to per ton basis in all eases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per
418
CONCENTRATION OF ECONOMIC POWER
Table 268. — Crushed stone
REGION V, SOUTH ATLANTIC
[Retail price indexes—July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January.
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1936— Continued
September
October
November
December
1937
January
100.0
100.0
100.0
100.0
100.0
19.38— Continued
March
April
May
June- -.-
July
August
September
100.0
February
March
91.5
91.5
April .
May
91.5
91.5
June --
91.5
July
91.5
February.-.. 1 100.0 1
October
November
December
1939
January
February
March
April
May...
June
July.-..
August
September
91.5
March
100.0
91.5
April -
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
91..')
May
December
June --
July
91.5
1936
January
August
September j
October
November
91.5
91.5
February
91.5
100.0
December
100.0
May ^
1938
January
100.0
June - .
100.0
July . ..
100.0
August
February
Specification: Stone, crushed, coarse aggregate for concrete, IH inches maximum, per ton.
ton or per yard in accordance with local custom but converted to per ton basis in all eases.)
Retail: Producer to contractor, delivered to job site, city.
Table 269. — Crushed stone
REGION VI. EAST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
(Priced per
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
February
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1936— Continued
September. .
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1938— Continued
March
April -
May
June
July
August
September
October
November
December
1939
January
February -.-
March - -
April
100.0
October
November
December
1937
January
February
100.0
100.0
April . - -
100.0
100.0
June -
100.0
July
100.0
100.0
March- . .
April . . .
100.0
October--
100.0
December
July --
100.0
1936
100.0
September-..-
October - ---
100.0
100.0
ii>.
^<^
November
December
1938
January
100.0
June- -
July
August
September-
100.0
100.0
100.0
July
100.0
August
February
Specification: Stono, crushed, ^coarse aggregate for concrete, ly- inches maximum; per ton.
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per
CUNCENTUATION OF ECONOMIC I'OWEU
419
Year and month
1935
January
February
March
April
May.
June
July
August
September...
October
November...
December
1936
January
February
March
April
May
June
July
August
Table 270. — Crushed stone
REGION VII. WEST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0] .
Retail
index
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
Year and month
1936— Continued
September
October ._.
November
December
1937
January
February
March
April
May _-.
June
July
August
September
October--
November
December
1938
January
February
Retail
index
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
Year and month
1938— Continued
March
April...
May
June
July
August
September.
October
November
December
1939
January-
February
March
April..
May
June
July
August
September
Retail
index
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
91.6
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Stono, crushed, coarse aggrccate (or concrete, U^ inches maximum: per ton. (Priced per
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 271. — Crushed stone
REGION VJII. ROCKY MOUNTAIN
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January . ..
February
March
.\pril
May
June
July
.\ugust
September..
October
November...
December.. .
193r.
January
February
March
April
May
June
July
August
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1936— Continued
September
October.
November
December
1937
January
February
March
April
May..
June
July...
August
September
October
November
December
1938
January
February
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1938— Continued
March
April
May
June..
July
August
September
October
November
December
1939
January . .
February.
March.. .
April
May
June...
July
August...
September
Retail
index
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Stone, crushed, coarse aggregate for concrete, IK' inches maximum; per ton.
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail- Producer to contractor, delivered to job site, city.
(Priced per
420
CONCENTRATION OF ECONOMIC POWER
Table 272. — Crushed stone
REOION IX. PACIFIC
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
139.2
139.2
139.2
139.2
139.2
139.2
139.2
130.2
130.2
134.7
161.7
161.7
139.2
116.7
116.7
116.7
116.7
116.7
116.7
116.7
1936— Continued
September
October.
November
December
1937
January
February
March _
April.
116.7
116.7
113.1
117.6
117.6
117.6
117.6
117.6
124.8
124.8
124.8
150.9
.150.9
155.4
155.4
186.9
186.9
186.9
1938— Continued
March
186.9
February
April ..
186.9
March . .
May
186 9
April
June
186 9
May ...
July
186.9
June - -
August
174.8
July
September
October
November
December
174.8
August . ... ..
174.8
September...
October .
174.8
174.8
November..
May
June :
July
August
September
October
November
December _
1938
January
1939
January. ..
December
174.8
1936
January . .
February
March
April
May.
June
July
August
September
174.8
102.3
February
March
102.3
102.3
AprO .
102. 3
May
102.3
June .-
98.9
July
98.9
August
February
Specification: Stone, crushed, coarse aggregate for concrete, IH inches maximum; per ton. (Priced per
ton or per yard in accordance with local custom but converted to per ton basis in all cases.)
RetaU: Producer to contractor, delivered to job site, city.
Table 21^.— Gravel
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
Index
Year and month
Retail
index
1935
January.-
February...
97.9
97.9
97.9
97.9
97.9
97.9
97.9
96.8
96.6
97.1
100.5
100.6
96.7
93.9
93.9
93.9
93.9
94.0
94.1
94.0
1936— Continued
September.. - -,
October
94.0
94.0
93.6
94.1
93.3
93.3
93.2
93.2
93.9
94.0
93.8
96.7
96.7
97.2
97.2
100.7
101.4
101.4
1938— Continued
March
April- -.
101.4
101.4
March
November
May
June
July
August - -
101.2
A pril
101. 1
May
June
1937
January
February
March
April.-.
May.-
June
July .
101.1
99.7
July.- -
September
99.7
August
September
October
November
December
October
November
December
1939
January
February
March
April
May.:
June -
July..
August
September
99.9
99.9
109.4
109. 1
1936
January.-
February
March
April
May
June
July -
August.-- -
August.--
September
October...
November
December
1938
January.-.
February
109.1
100.6
100.7
100.7
100.5
100.3
99.9
99.9
Specification: Gravel, coarse aggregate for concrete, IH inches maximum; per ton.
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or
CONCENTRATION OF ECONOMIC POWER
Table 274. — Gravel
REGION I. NEW ENGLAND
IRetail price indexes— July-September 1939=100.0]
421
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
111.7
111.7
111.7
111.7
111.7
111.7
111.7
111.7
111.7
111.7
111.7
111.7
107.0
107.0
107.0
107.0
107.0
107.0
107.0
107.0
1936— Continued
September
107.0
107.0
107.0
107.0
101.3
101.3
101.3
101.3
101.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1938— Continued
March-..
100.0
February
October
April
100.0
March
November .
May...
100.0
April-
December..
June
100.0
May
1937
January
July - .
100.0
June
August
September
October
November
December .
100.0
July ..-
100.0
August
February
March
100.0
100.0
October
April
100.0
November
May .-
1939
January
June
July
August
September
100.0
1936
January . -.
February
March
April -
100.0
100.0
February
October
100.0
November
December..
May.
100.0
April
June
July
August-
100.0
May
1938
January
100.0
June
100.0
July
September
100.0
August ...
February
Specification: Gravel, coarse aggregate for concrete, 1}4 inches maximum; per ton. (Priced per ton or
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 275.— Gravel
REGION II. MIDDLE ATLANTIC
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
1936— Continued
September
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
74.9
78.7
78.7
1938— Continued
March
78.7
February
October
April
78.7
May...
78.7
December
June
78.7
May
1937
January .
July -
78.7
August
78.7
July
September
78.7
August
February - . -
October
November
December
1939
January
February
March
78.7
March..
78.7
April -
100.0
November
May
June
July
100.0
19S6
August
100. 0
January
February
Marcb
100.0
April
100.0
November
May
100.0
April
June
100.0
May
1938
January
July
100.0
August
100.0
July
September
100.0
August
February
Specification: Gravel, coarse aggregate for concrete, IH inches maximum; per ton.
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to jo b site, city.
(Priced per ton or
422
CONCENTRATION OF ECONOMIC POWER
Table 276.— Gravel
REGION III. EAST NORTH CENTRAL
[Retail price indexes — July-September 1939=100.0]
Year and month
1935
January
February
March
Apjil
May
June
July
August
September- --
October
November--.
December...
1936
January
February
March
April- --
May.-
June--
July
August
Retail
index
119.4
119.4
119.4
119.4
119.4
119.4
119.4
119.4
117.6
117.6
118.2
118.8
111.3
111.3
111.3
111.3
111.3
111.3
111.3
111.3
Year and month
19.36— Continued
September..-
October
November
December
1937
January
February
March
April
May
June
July--.
August
September
October
November
December
1938
January
February
Retail
index
111.3
111.3
111.3
111.3
107.3
107.3
106.7
106.7
106.2
107.3
105.7
105.7
105.7
105.7
105.7
105.7
100.0
100.0
Year and month
1938 — Continued
March
April
May
June
July
August
September
October -..
November-
December
1939
January...
February
March
April -
May
June
July
August.--
September
Retail
index
100.0
100.0
98.2
98.2
98.2
98.2
98.2
99.7
99.7
99.7
99.7
99.7
99.7
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Gravel, coarse aggregate for concrete, VA inches maximum; per ton. (Priced per ton or
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 277. — Gravel
REGION IV. WEST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
February
March
April
May
June
July
August- --
94.7
94.7
94.7
94.7
94.7
94.7
94.7
94.7
94.7
94.7
94.7
94.7
98.6
98.6
98.6
98.6
98.6
98.6
98.6
98.6
1936— Continued
September
October
November
December
1937
January
February
March
April - -
May -
June
July-
98.6
98.6
98.6
98.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
1938— Continued
March.
April
May
June
July
August-. -
September
October
November
December
1939
January
February
March-
April
May
June
July -
August-- _
September
100.6
100.6
100. 6
100.6
100. 6
100.6
100.6
100. 6
September
October-
November
December
100.6
100.6
100.0
1936
January
August
September .
100. 0
100.0
February
March...
October
November .
December...
1938
January
February
100.0
100.0
April
100. 0
May.
June
100.0
100.0
Uily..
100.0
Vugust
Specification: Gravel, coarse aggregate for concrete, IJ^inches maximum; per ton.
IM>r yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or
OONCENTRATION (1F ECONOMIC POWER
423
Table 278. — Gravel
REGION V. SOUTH ATLANTIC
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April. . .
May
June.-
July-.
August
September...
October
November. .
Decomber. .
1930
January
February
March.
April...'.
May
June
July
August
Retail
index
99.6
99.6
99.6
99.6
99.0
99.6
99.6
99.6
99.6
99.6
99.6
99.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year an'l month
1936— Continued
September
October
November
December
1937
January
February
March
April
May...
June
July
August
September
October
November
December . .,
1938
January.
February
Retail
index
100.0
100.0
100.0
100.0
101.2
101.2
101.2
101.2
101.2
101.2
lOi. 2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
Year and month
1938— Continued
March
April
May.
June...
July
August
September
October
November.
December
1939
January
February
March
April
May
June
July
.\ugust
September
Retail
index
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
101.2
100.0
100.0
100.0
100.0
Specification: Gravel, coarse aggregate for concrete, IK inches maximum: per t.im. (Priced per ton or
per yard in accordance with local custom but converted to per ton basis in all ca,scs.)
Retail: I'roducer to ex)ntractor, delivered to job site, city.
■^'ear and month
1935
January
February
March
April
May
June
July
August
September...
October
November...
December
1930
January
February
March
April
May
June.
July
August
Table 279.— GrcfcZ
REGION VI. EAST SOUTH CENTRAL
(Retail price indexas— July-September 1939=100.0)
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
lOO.O
100.0
100.0
100.0
100.0
100.0
Year and month
1936— Continued
September
October..
November...
December
1937
January
February
March
I April
May
June.
July...
August -.
September
October
November
December
January
February.
1938
Retail
index
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1(X).0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
"i'ear and iiioiitli
1938— Continued
March
April
May
June
July ....
August
September ..
October
November
.December ..
1939
January
February.
March..
April
May
June
July
.\ugust
September
Retail
index
UK). 0
100 0
iOO. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
IOO. 0
100. 0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
Specification: Gravel, coarsi* aggreeate for concrete. \]/i inches maximum: jier ton.
per yard in accordance with local custom but converted to per ton basis in all ca-^cs.)
Retail: Producer to ecmtraetor, delivered to job site, city.
(Priced per ton or
424
CONCENTRATION OF ECONOMIC POWER
Table 2S0.— Gravel
REGION VII. WEST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
AprU
May
June
July
August
September.-.
October
November...
December
1936
January
February
March
April
May
June
July
August
Retail
index
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
110.5
107.9
107.9
107.9
107.9
107.9
107.9
107.9
107.9
Year and month
1936— Continued
September
October..
November --.
December.
1937
January
February... ._
March
April
May
June
July
August
September
October
November _ .
December
1938
January
February
Retail
index
107.9
107.9
107.9
107.9
106.3
106.3
106.3
lOfi.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
106.3
104.9
104.9
Year and month
1938— Continued
March
April
May
June
July
August.
September
October
November
December
1939
January. _
February
March
April-
May
June
July
August
September
Retail
index
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
104.9
103.3
103.3
103.3
103.3
103,3
103.3
100.0
100.0
100.0
Specification: Gravel, coarse aggregate for concrete, 1^ inches, maximum; per ton. (Priced per f.on or
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 281.— Gravel
REGION VIII. ROCKY MOUNTAIN
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April —
May
June
July
August
September...
October
November. -.
December.. -
1936
January
February
March
April...-
May
June
July... -
August
Retail
index
105.5
105.5
105.5
105.5
105.5
105.5
105.5
105.5
105.5
105.5
105. 5
105.5
105.5
105.5
105. 5
105.5
105.5
106.9
106.9
104.2
Year and month
1936— Continued
September.
October
November
December
1937
January
February
March
April
May
June
July
August
September
October
November
December
1938
January
February
Retail
index
104.2
104.2
104.2
104.2
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
:C2. 1
102-1
Year and month
1938— Continued
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
102.1
102.1
102.1
100.0
100.0
100.0
100,0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Gravel, coarse aggregate for concrete, 1}4 inches maximum; per trm.
per yard in accordance with local custom but converted to per ton basis in all eases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or
CONCENTRATION OF ECONOMIC POWER
425
Table 282. — Gravel
REGION IX. PACIFIC
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June...
July
August
September.. -
October
November...
December...
1936
January
February
March
April..:
May
June
July
August
Retail
index
145.
146.
145.
145.
146.
145.
145.
136.
136.
141.
169.
169.
145.8
122.1
122.1
122.1
122.1
122.1
122.9
122.9
Year and month
1936- Continued
September...
October
November
December.-
1937
January.-
February .
March
April
May
June
July
August
September
October
November
December
1938
January.
February..
Retail
index
122.9
122.9
119.5
123.8
122. 3-
122.3
122.3
122.3
129.2
129.2
129.2
154.3
154.3
158.6
158.6
188.9
188.9
188.9
Year and month
1938— Continued
March
April
May
June
July
August
September
October .-.
November
December
1939
January
February --
March..-
April
May
June
July
August
September
Retail
index
188
188
188
188.
188
176.
176,
176.
176.
176,
175.4
175.4
102.7
102.7
102.7
102.7
102.7
99.2
98.9
Specification: Gravel, coarse aggregate for concrete, IJ^ inches maximum; per ton. (Priced per ton or
per yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 29,Z.—Sand
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.0]
Year and month f^^^
Year and month
Retail
index
Year and month
Retail
index
1935
January -..
February
March
April
May .
98.0
98.0
98.0
98.0
98.0
98.0
98.5
97.3
97.2
96.9
97.5
97.5
95.7
95.7
95.7
95.7
95.7
95.7
95.7
95.8
1936— Continued
September
October
November
December
1937
January
February
March
April -
May
June
95.8
95.7
95.7
95.7
94.8
94.8
94.8
94.5
94.5
95.7
95.8
98.4
98.4
98.9
98.9
101.4
100.6
100.6
1938— Continued
March
April .-
May
June
July
August..
September
October.-,
November
December
1939
January
February
March-
April
100.2
99.8
99.9
99.5
99.6
June
July
98.3
98.3
Augtist
98.3
September -
October
98.3
98.5
November
December
1936
January .
July-.-
August -
September -
98.4
98.4
101.3
February
October
November-
101.4
March
May
June
101.8
April
101.7
May
1938
January.
July
August
September
100.0
June .
100.0
July
100.0
August
February -
Specification: Sand, concrete, H-inch maximum, No. 6 mesh screen; per ton. (Priced per ton or per
yard in accordance with local custom but onnvcrtod to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city
426
CONCENTKATION OF ECONOMIC POWER
Table 284:.— Sand
REGION I. NEW ENGLAND
[Retail price indexes — July-September 1939=100.0]
Year and month
Retail
index
Year and month
Reiail
index
Year and month
Retail
index
1935
January
February
March
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
107.3
107.3
107.3
107.3
107.3
107.3
107.3
107.3
1936— Continued
September
October
November
December...
1937
January
February
March
April
May
107.3
107.3
107.3
107.3
100.0
100.0
100.0
100.0
TOO.O
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
lon.o
1938— Continued
March
April
May
100.0
100.0
100.0
100.0
May..
July.
100.0
June -- -
August
September.
October
November
December
1939
January
100.0
July....
August
September.. ..
100.0
100.0
100.0
October.
November
100.0
July
August
September
October
November
100.0
1936
January
February
February
March.
April
100.0
100.0
100.0
March
May . ...
100.0
April..
June
July
100.0
May
1938
January
February
100.0
June
August
September.-
100.0
Julv
100. 0
Au!;ust
Specification: Sand, concrete, H inch maximum, No. 6 mesh screen; per ton. (Priced per ton or per
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 285.— Sand
REGION II. MIDDLE ATLANTIC
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June -
July
August
September...
October
November...
December
1936
January
February
March
April
May
June
July.
August
Retail
index
79.1
79.1
79. 1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
79.1
Year and month
1936— Continued
September
October
November
December
1937
January _ .
February
March _..
April .
May ...
June
July
August-
September
October
November
December .
1938
January
February.'..-....-..
Retail
index
79.1
79.1
79.1
79.1
79.1
79. 1
79.1
79.1
79.1
81.6
81.6
81.6
81.6
SI. 6
8i 6
81.6
81.6
81.6
Year and month
1938— Continued
March
April
May
June
July
August
September
October
November
December.-
1939
January
February
March-..'.
April.
May
June
July
August...
September
October
Retail
index
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.6
81.0
81.6
81.6
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
Specification: Sand, concrete, }.5-inoh maximum, No. 6 mesh screen; per ton. (Priced per ton or per
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
427
Table 286. — Sand
REGION in. EAST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April.
May
June ...
July -.
August
September.. -
October
November...
December...
1936
January
February
March
AprU
May
June
July
August
Retail
index
122.3
122.3
122.3
122.3
122.3
122.3
122.3
120.8
120.8
119.0
119.0
119.0
112.3
112.3
112.3
112.3
112.3
112.3
112.3
112.3
Year and month
1936— Conttaued
September
October
November
December
1937
January
February
March
April —
May
June
July...
August
September
October
November
December
1938
January
February
Retail
index
112.3
112.3
112.3
112.3
107.3
107.3
107.3
105.5
105.5
105.5
106.5
106.5
106.5
106.5
106.5
106.5
101.5
101.5
Year and month
1938— Continued
March
April
May
June
July.
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
99.1
99.1
99.7
98.2
99.1
99.1
99.1
99.1
99.1
99.1
99.4
99.4
99.4
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Sand, concrete, Vi inch maximum, No. 6 mesh screen; per ton. (Priced per ton or per
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 287. — Sand
REGION IV. WEST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May :
June
July _
August
September...
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
86.2
86.2
86.2
86.2
86.2
86.2
86.2
86.2
86.2
86.2
86.2
86.2
97.8
97.8
97.8
97.8
97.8
97.8
97.8
97.8
Year and month
1936— Continued
September
October _
November. _ _ _
December
1937
January
February..
March
April
May
June
July..-
August
September
October
November
December -..
1938
January
February
Retail
index
97.8
97.8
97.8
97.8
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
101.0
100.7
100.7
100.3
100.3
Year and month
1938— Continued
March
April
May
June
July
August
September
October
November
December
1939
January
February
March
April
May...
June
July
August
September
Retail
index
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Sand, concrete, ^-inch maximum. No. 6 mesh screen; per ton. (Priced per ton or per
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
275852 — 41— No. 33 — 29
428
CONCENTRATION OF ECONOMIC POWER
Table 2SS.—Sand
REGION V. SOUTH ATLANTIC
[RetaU price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September.- -
October
November. . .
December...
1936
January
February
March
April
May -
June --.
July
August
Retail
index
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
102.6
Year and month
1936— Continued
September.
October
November.
December
1937
January
February
March
April
May .-
June
July..
August
September.
October
November...
December
1938'
January
February
Retail
index
102.6
102.6
102.6
102.6
101.1
101.1
101.1
101.1
101.1
101.3
101.3
101.3
101.3
101.3
101.3
101.3
101.1
101.1
Year and month
193S— Continued
March
April
May.
June
July
August
September
October
November
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
101.1
97. 4
97. 4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
97.4
101.1
100.0
100.0
100.0
100. 0
Speclflcation: Sand, concrete, }i inch maximum. No. 6 mesh screen; per ton.
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or per
Table 289.— Sand
REGION VI. EAST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March. .1
April
May
June
July
August
September...
October
November...
December. . .
1936
January
February
March
April.
May..
June -.
July....
August
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1936— Continued
September
October c
November.
December..
1937
January
February
March.
.4pril
May...
June.
July
August
September
October...
November
December
1938
January
February..
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Year and month
1938— Continued
March
April
May
June
July
August...
September
October...
November
December.
1939
January...
February
March
AprO.
May
June.
July....
August
September
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100,0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
Specification: Sand, concrete, H inch maximum. No. 6 mesh screen; per ton.
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or per
CONCENTRATION OF ECONOMIC POWER
429
Table 290.— Sand
REGION VII. WEST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0)
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
1936— Continued
September
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
123.7
1938— Continued
123.7
February.
October
April
123 7
March
November ..
May
123 7
April
December
123.7
May -. -
1937
January
July
123.7
June.
August
123 7
July ... .
September _
October _.
November
123 7
August
February ....
123 7
September ..
March ..
123 7
October ___
April.
December
127 2
November
May - .
1939
January
December
June .
July
127.2
1936
August _
February
March
127.2
January
September
127 2
February
October
April
May
June
127 2
March
November
December
127 2
April
127.2
May.. -
1938
January ...
July
100.0
June - . . -
August
September.. _
100 0
July
100 0
Specification: Sand, concrete, }4 inch maximum, No. 6 mesh [screen; per ton. (Priced per ton or per
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
Table 291. — Sand
REGION VIII. ROCKY MOUNTAIN
[Retail price indexes— July-September 1939 = 100.0]
Year and month
1935
January
February
March.-
April
May.
June
July...
August
September...
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
109.5
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
April
May
June
July...
August...
September
October
November
December
1938
January
February
Retail
index
109,5
105.9
105.9
105.9
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
104.8
Year and month
1938— Continued
March
April
May
June
July
August.
September
October
November
December
1939
January
February
March
April
May
June...
July
August...
September
Retail
index
104.8
104.8
104.8
100.0
100. C
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Sand, concrete, •.^-inch maximum. No. 6 mesh screen; pe/'Con. (Priced per ton or per
yard in accordance with local cu.stom but converted to per ton basis in alV cases.)
Retail: Producer to contractor, delivered to job site, city.
430
CONCENTRATION OF ECONOMIC POWER
Table 292. — Sand
REGION IX. PACIFIC
[Retail price indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
jRrnis<ry
116.8
116.8
116.8
116.8
116.8
116.8
121.0
112.6
112.6
112.6
117.6
117.6
108.4
108.4
108.4
108.4
108.4
108.4
108.4
1936— Continued
August
September..
October
109.2
109.2
109.2
109.2
109.2
110.0
110.0
110.0
110.0
110.0
110. 0
110. 0
132.7
132.7
136.9
136.9
157.9
157.9
1938— Continued
February
March
157.9
157.9
April...
May. - . - -
157.9
April
November .
157.9
December..
June
July
August
157.9
1937
January
February .
157.9
July
146.2
September ...
146.2
September
October. .
146.2
March.
November
December
1939
January
146.2
April
146.2
May
June
1936
July 1
145.3
August
February
145.3
February
September
March
100.0
March .
October
April
May...
June
July....
August..
100.0
November...
December . . .
100.0
Mav
100.0
June. --
July.:
1938
January
100 0
100.0
September
100.0
Specification: Sand, concrete, J4-inch maximum. No. 6 mesh screen; per ton.
yard in accordance with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
(Priced per ton or per
CHAPTER XXV
READY-MIXED CONCRETE
The ready-mixed concrete industry is a development of the past
decade and particularly of the last 5 years. An increasing propor-
tion of sand and gravel — two of the basic ingredients of concrete —
has been sold to ready-mixed concrete producers rather than contrac-
tors. Mai^y sand and gravel producers have added a "ready-mix"
service tt) their business.
Price Levels.
Prices on the 1-3-5 mix/ reported from 43 cities, ranged from $5
to $11 per cubic yard. In 21 cities, however, the prices varied only
narrowly, from $6 to $7. The distribution follows:
Range of typical prices (dollars per ton)
Number
of cities
Range of typical prices (dollars per ton)
Number
of cities
$5.01 to $5.50
4
3
11
10
8
$7.51 to $8
6
$5.51 to $6
$8.01 and over .-_ ,
Total
1
$6.01 to $6.50
$6.51 to $7 -
43
$7.01t0$7.50
Marked regional variations are noted. In the Pacific area, the
average of typical prices was $5.85 per cubic yard, while in the Middle
Atlantic, South Atlantic, and East South Central regions the averages
were over $7. The regional differentials are shown in the following
summary:
Region
Average of
typical
prices
(dollars
per cubic
yard)
Region
Average of
typical
prices
(dollars
per cubic
yard)
$6.65
7.45
6.61
6.48
7.29
VI. East South Central
$7.18
II. Middle Atlantic
VII. West South Central
6.78
III. East North Central
VIII. Rocky Mountain
6.84
IV. West North Central
IX. Pacific
5.85
V. South Atlantic
Price Trends. (See chart XLI and tables 293 to 302.)
The national composite index fell gradually from its mid- 1935 level
of 106 percent of the July to September 1939 average to the base level
of 100 in 1939. Prices in the>New England, the Aliddle Atlantic,
West North Central, East South Central, and West South Central
areas followed this general pattern of relative stability, although the
latter four regions showed moderate increases rather than declines
during the period.
> 1 part cement, 3 sand, and 5 gravel. This is a standard mix for light construction.
431
432
CONCENTRATION OF ECONOMIC POWER
■ In the East North Central area the index was steady, except for a
sHght drop in 1935 and recovery in 1936, until late in 1937 and early
in 1938, when a series of declines occurred aggregating 13 percent. A
similar pattern of price changes was reported in the South Atlantic
area, although the drop started earlier in 1937, In the Rocky Moun-
tain region, only one change was reported during the 5-year period, a
7-percent drop in January 1938. In the Pacific area, the index rose
from 115 to 127 in 1935, then dropped back to 115 and remained at
this level until October 19C8; three successive price reductions then
brought the index down to 100 in May 1939.
Table 293. — Ready-mixed concrete, lS-5
COMPOSITE UNITED STATES AVERAGE
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April--
May
June -
July
August
September.-.
October
November- --
December. - .
1936
January
February
March
April
May
June
July --
August
Retail
index
104.
104.
104.
104.
lO.'i.
105.
104.
10.5.
104.
104.
104.
104.
103.5
103. 5
103.5
J 03. 5
104.1
104.1
104.1
104.1
Year and month
1936— Continued
September...
October
November.-
December
1937
January
February
March
April.
May
June
July ----
August
September
October.-- --
November.--
December
1938
January -
February
Retail
index
104.1
104.1
104. 1
104.1
103.7
103.7
103.7
103.7
102.8
102.8
102.8
102.8
102.8
102.5
102.5
102.5
103.1
103.1
Year and month
1938— Continued
March
April. -
May
June
July -
August..:
September
October
November
December
1939
January---
February
March
April
May 1--
June
July
August
September
Retail
index
103.1
102.2
102.2
102.2
101.1
101.1
101.1
100.4
100.9
100.9
100.6
100.7
100.3
100.6
100.1
100.1
Specification: Concrete, i-S-.*;, ready-mixed, Portland cement; ptr yard.
Retail: Producer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
433
Chabt XLI
READY MIXED CONCRETE 1-3-5
RETAIL PRICE INDEXES
JULY -SEPTEMBER 1939 = 100
UNITED STATES
- Weighted Averoge Price
1 ^^^"^^^^-^^
REGION I - NEW
ENGLAND
"-
1 I
1
-
! 1
MO
REGION H - MIDDLE ATLANTIC
! ! I 1 1
i
^ mm ^ H- MM-M^r^E-^-^
i
iON in - EAST NORTH CENTRAL
■^'--'■■■^T
1 r
i 1
1
REGION
IZ -WEST NORTH CENTRAL
!
REGION Z
- SOUTH ATLANTIC
1
\.
cr^~
REGION
21 - EAST^OUTH CENTRAL
\
REGION Sn - WEST SOUTH CENTRAL
REGION ism
- ROCKY MOUNTAIN
1
1
1
REGION H - P
ACIFIC
f J
t 1 ^
1
1
1935 1936 1937 1938 1939 1940 1941 1935 1936 1937 1938 1939 1940 1941
UNITCD STATES. BUREAU OF LABOR STATISTICS
434
CONCENTRATION OF ECONOMIC POWER
Table 294. — Ready-mixed concrete, 1-3-5
REGION I. NEW ENGLAND
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March -
April
May
June ---
July
August-
September.-.
October '-.
November.. -
December. . .
1936
January
February
March
April
May
June
July
August
Retail
index
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
Year and month
1936— Continued
September
October
November
December
1937
January
February
March
AprU
May
June
July
August
September
October
November
December
1938
January
February
RetaU
index
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
102.1
100.4
100.4
Year and month
1938— Continued
March ,
April
May
June
July -.
August
September...
October
November
December
1939
January
February
March-
April
May
June '.
July..
August... .--
September
Retail
index
100.4
100.4
100.4
100.4
100.4
100.4
100.4
100.4
100.4
100.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Speciflcation: Concrete, 1-3-5, ready-mixed, Portland cement; per yard.
Retail: Producer to contractor, delivered to job site, city.
Table 295. — Ready-mixed concrete, 1-3-5
REGION IT. MIDDLE ATLANTIC
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March.-
April
May
June
July
August
September.. -
October
November.-.
December...
1936
January
February
March
April
May
June
July
August
Retail
index
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
Year and month
1936— Continued
September
October
November
December
1937
January
February
March-
April - -
May
June - ---
July
August -
September
October
November..-
December
1938
January-
February
Retail
index
98.0
98.0
98.0
98.0'
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
98.0
100.0
100.0
Year and month
1938— Continued
March
April
May
June •-
July
August
September
Octob-^r
November
December.
1939
January
February
March
April.
May
June
July
August
September
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. n
100.0
100.0
100.0
100.0
Speciflcation: Concrete, 1-3-5, ready-mixed, portland cement: per yard.
Retail: Producer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER
Table 296. — Ready-mixed concrete, 1-3-6
REGION III. EAST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
435
Year and month
1935
January
February
March
April
May
June
July
August
September.. -
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
109.5
109.5
109.5
109.5
109.5
109.5
105.4
107.8
106.2
106.2
106.2
106.2
106.2
106.2
106.2
106.2
109.9
109.9
109.9
109.9
Year and month
1936— Continued
September
October
November. _ ,
December
1937
January.
February.
March
April
May
June
July
August
September
October
November
December
1938
January
February.
RetaU
index
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
109.9
107.8
107.8
107.8,
107.8
107.8
Year and month
1938— Continued
March
April
May..
June
July
August
September...
October
November.
December
1939
January..
February
March
April
May
June
July
August
September
RetaU
index
107.8
103.4
103.4
103.4
96.0
96.0
96.0
96.0
99.7
99.7
99.4
99.4
99.4
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Concrete, 1-3-5, ready-mixed, Portland cement; per yard,
etail: Producer to contractor, delivered to job site, city.
Table 297. — Ready-mixed concrete, 1-3-5
REGION IV. WEST NORTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May
June
July
August
September...
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
99.
Year and month
1936— Continued
September
October
November
December .
1937
January.
February
March
April
May...
June.-
July
August
September
October
November.
December
1938
January
February
RetaU
index
99.6
99.6
99.6
99.6
99.6
8.6
Year and month
1938— Continued
March
AprU
May
June
July
August
September.
October
November.-
December
1939
January.
February
March
AprU
May
June
July
August
September
Retail
index
98.6
98.6
98.
98.6
100.1
100.1
100.1
100.1
100.1
100.1
100.1
99.7
Specification: Concrete, 1-3-5, ready-mixed, portland cement; per yard.
Reta'V Producer to contractor, delivered to job site, city.
436
CONCENTRATION OF ECONOMIC POWER
Year and month
Table 298. — Ready-mixed concrete, 1-3-5
REGION V. SOUTH ATLANTIC
[Retail price indexes— July-September 1939=100.0]
1935
January
February
March
April
May
June
July....
August
September...
October
November...
December
1936
January
February
March
April
May
June
July
August
Retail
index
112.1
112.1
112.1
112. 1
112.1
112.1
112.1
112.1
111.9
111.9
111.9
111.9
111.
111.
111.
111.
111.
111.
111.
111.
Year and month
1936— Continued
September
October
November.
December
1937
January.-
February
March
April
May. _
June.
July
August
September
October
November
December
1938
January.-
February
Retail
index
111.9
111.9
111.9
111.9
109.0
109.0
109.0
109.0
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.7
101.7
Year and month
1938— Continued
March.
April
May
June 1
July
August
September
October
November...
December
1939
January
Febriiarj'
March
April
May
June
July
August
September.
Retail
index
99.
101.7
.5
.5
99.5
99.5
99.5
99.5
99.5
99.5
99.5
97.8
97.8
97.8
98.8
100.6
100.6
100. 6
99.7
99.7
Specification: Concrete, 1-3-5, ready-mixed, Portland cement; per yard.
RetaU: Producer to contractor, delivered to job site, city.
Table 2^^. ^Ready-mixed concrete, 1-3-5-
REGION VI. EAST SOUTH CENTRAL
[Retail price indexes— July-September 1939=100.0]
Specification: Concrete, 1-3-5, ready-mixed, portland cement; per yard.
Retail: Producer to contractor, dclivcrod to job sito, city.
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1937
January
February
March
April
May
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
1938
January
February
March _
April
May
June
July..
August
September
October
November
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
98.4
1939
January
February
March
April
May
June...
July
August
September
98.4
98.4
98.4
100.0
100.0
June.
July
August
September
October
November
December
100. 0
100. 0
100.0
100.0
CONCENTRATION OF ECONOMIC POWER
437
Table 300. — Ready-mixed concrete l-S-5
REGION VII. WEST SOUTH CENTRAL
[Retail price indexes July-September 1939 = 100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
100.6
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
1936— Continued
September
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
102.0
1938— Continued
March .-.
102.0
October ..
April
102.0
November
May --
102.0
April
December -.
June -
102.0
1937
July
102.0
August
102.0
July
September -.
102.0
February . .
October
102.0
March
November --.
102.0
April
December
102.0
May
1939
January
June
July
102.0
1936
February
102.0
September
March
96.0
October
April .
May -
96.0
November
96.0
December
June
96.0
1938
July
96.0
August
102.0
July
September
101.7
February.
Specification: Concrete, 1-3-5, ready-mixed, portland cement; per yard.
Retail: Producer to contractor, delivered to job site, city.
Table 301. — Ready-mixed concrete, 1-3-5
REGION VIII. ROCKY MOUNTAIN
[Retail price indexes— July-September 1939=100.0]
Year and month
1935
January
February
March
April
May -
June --
July --..
August
September...
October
November...
December...
1936
January
February
March
April
May
June
July
August
Retail
index
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
Year and month
1936— Continued
September
Octo"ber-
November.
December _
1937
January. _.
February.
March _.
April
May
June
July
August
September
October
November
December
1938
January
February.-
Retail
index
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
107.2
, 107. 2
107.2
107.2
107.2
107.2
107.2
107.2
100.0
100.0
Year and month
1938— Continued
March
April
May
June
July
August.
September
October
November.
December
1939
January
February
March
April
May
June
July
August
September
Retail
index
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Specification: Concrete, 1-3-5, ready-mixed, portland cement; per yard.
Retail: Producer to contractor, delivered to job site, city.
438
CONCENTRATION OF ECONOMIC POWER
Table 302. — Ready-mixed cement, 1-3-5
REGION IX. PACIFIC
[Retail price Indexes— July-September 1939=100.0]
Year and month
Retail
index
Year and month
Retail
index
Year and month
Retail
index
1935
January
114.8
114.8
121.9
121.9
126.7
126.7
127.1
127.1
127.1
127.1
127.1
127.1
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
1936— Continued
September. ...
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
114.8
1938— Continued
March
114.8
February
October
November
December
April
114.8
March.
May ■.
June
114.8
April
114.8
May
1937
January
February
March.
April
July
114.8
June -
August ..
114.8
July -.
September
1)4.8
August
October
November
December
1939
January
108.6
September
108-. 6
108.6
November
May
June
July
108.2
1936
August
February
108.2
January
September.
March..
April
May .
108.2
February
October
November
108.2
100.0
April
December .. ..
June.
100.0
May. -
1938
January
July...
August ...
100.0
June ...
100.0
July
September
100.0
August . - . .
February
Specification: Concrete, 1-3-5, ready-mixed, Portland cement; per yard.
Retail: Producer to contractor, delivered to job site, city.
APPENDIX A
DIFFERENTIALS IN PRICES BETWEEN A LARGE CITY AND
ITS OUTLYING DISTRICTS
In the course of this survey, building material prices in a large city,
Cleveland, were compared with prices for the same products in three
nearby smaller towns in Ohio — PainesviUe, Medina, and Wooster,^
in order to discover any differentials in building material costs beyond
the limits of the metropolitan area where building has been increasing
rapidly in recent years. This comparison showed that, for most
building materials distributed on other than a local scale, prices were
lower in Cleveland than in the surrounding territory.^ The results
of this analysis are presented below, accompanied by an explanation
of the market factors involved.
Prices, retailer or dealer, to contractor, delivered at the job site,
were collected in each city. Several quotations were obtained on
each item and representative series were selected for use in this study.
The results are shown below:
Prices relative to Cleveland
Number of commodities
Medina
Paines-
ville
Wooster
Higher than Cleveland
Same as Cleveland
Lower than Cleveland.
In all of the small cities more than three-fourths of the prices were
higher than in Cleveland. Two or three prices were identical with
Cleveland and in only one place, Medina, were as many as five items
lower than in Cleveland. (See table 1.)
In general, this can be accoimted for by the difference in whole-
sale prices which resulted from the addition of freight to the Cleve-
land price. Many of the products are manufactured in Cleveland
or the surrounding area; on others, distributors maintain large ware-
houses with supplies of the materials; some are shipped to Cleveland
for pickup by dealers or consumers.
' The populations and distances from Cleveland arc as follows:
Population
Miles
Painesville .
10, 944
4,071
10, 742
28
Medina
32
Wooster .
45
' This phase of the study was confined to Cleveland and the surrounding area. AVhether generalizations
drawn therefrom have equal applicability to other metropolitan and outlying districts was not determined.
439
440
CONCENTRATION OF ECONOMIC POWER
Building material dealers in the smaller localities are frequently
unable to realize the benefits of carlot buying and hence wholesale
costs are higher. Transportation costs from plant or warehouse to
destination are higher on the smaller quantities. In addition, the
prices of the product at the plant frequently are higher for smaller
quantities.
For many of the building material items sold on a zone or freight
equalization basis, the actual list prices are higher on less-than-carlot
sliipments than they are on carlot quantities. For example, in the
case of insulation board this spread between carlot (56,000 square
feet) and 7,000 square feet is $3 per thousand. On certain types of
roofing the carlot list is 86 percent of the less-than-carlot list.
The dealers in small areas such as Medina, Painesville, and Wooster
generally purchase the materials from manufacturers' representatives
and distributors, warehouses and yards, located in the adjacent
large city, in this case Cleveland. They buy in relatively small
quantities and pay truckage or cost of railroad freight to destination,
and therefore the wholesale price is relatively liigh. Freight is an
important element because of the weight of the materials involved.
The amounts involved for a few products are as follows:
Material
Less-than-carlot freight rates
per 100 pounds
Paines-
ville
Medina
Wooster
Hydrated lime
$0. 21
.35
.21
.23
.21
$0.22
.37
.22
.24
.22
$0.27
.46
Plaster .1 -
.27
.30
Cement - .
.27
If purchased in small lots and shipped out of Cleveland, the trans-
portation charges are considerable. For example, a square of 210
pounds roofing shingles wholesaling at $4.25 in Cleveland would cost
about 65 cents more in Wooster because of transportation charges.
Freight on this item from Cleveland would amount to 50 cents on
sales to Painesville and 52 cents to Medina.
However, on products which are marketed in a small local area, like
brick, sand, gravel, and stone, the prices generally are lower in the
outlying towns than they are in the large city. The kiln or pit on
these products is usually located either at the extreme edge of the city
or outside the city. Retail prices for these products were found to be
lower in the three small cities surveyed than in Cleveland.
These differentials in prices of building materials may be compared
with the differences in wage rates in the same localities, which show a
contrasting picture.^ Whereas in the case of materials prices are
higher in the small localities, wage rates in construction trades are
higher in the metropolitan center. . The comparison for important
occupations follows:
3 Work Projects Administration, Hourly Wage Rates for W. P. A. and For Private and Other Public
Construction, 1938, Selected Occupations, Washington, D. C, July 1939.
CONCENTRATION OF ECONOMIC POWER
441
Number of occupations
Wage rates relative to Cleveland
Medina
Paines-
ville
Wooster
Higher than Cleveland.
0
2
8
0
3
7
0
Same as Cleveland
1
Lower than Cleveland
9
In no trade were the wages lower in Cleveland than in the three oiit-
13'ing localities. Cleveland rates were higher in 7 of 10 occupations
studied in Painosville, 8 of 10 in Medina, and in 9 of 10 trades in
Wooster, Ohio. (See table 2.)
In other words, in this metropolitan area, probably typical of many
sections, the differentials in labor costs and in material costs tend to
compensate each other to some extent. Wage rates are higher but
material costs arc lower in the large city than in the outlying com-
munities.
Table 1. — Retail prices of buildiyig materials in Cleveland and vicinity, October 1939
[Prices charged the contractor for materials delivered to job site]
Material
Unit
Prices
Index numbers (Clcv
prices =100.0)
3land
Cleve-
land
Me-
dina
Paines-
■ ville
Woos-
ter
Cleve-
land
Me-
dina
Paines-
ville
Woos-
ter
Ton.
$14. 00
45.00
16.00
5.44
2.52
37.50
78.75
45.00
46.75
2.94
1.63
3.37
3.43
16.00
19.00
58.00
.18
1.75
1.75
2.50
101.70
5.10
$16. 00
47.00
18.00
5.75
2.47
42.00
90.00
46.00
45.00
2.20
4.41
4.60
16.00
23.00
65.00
.17
1.63
1.45
2.88
107.00
6.25
20.00
13.50
.32
21.00
51.20
12.30
9.00
$18. 00
47.50
18.00
5.50
2.60
42.30
88.20
47.70
45.00
3.97
2.46
3.87
5.16
20.00
23.00
""Ms"
1.75
1.50
2.65
104. 50
6.25
18.70
11.50
.32
18.65
53.05
10.00
7.60
7.35
$18. 00
44.00
18.00
5.75
2.80
42.00
81.00
51.30
49.50
3.97
2.45
4.05
5.16
16.00
23.00
62.60
.20
1.50
1.30
2.75
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
114
104
113
106
98
112
114
102
96
135
131
134
100
121
112
94
93
83
115
105
123
129
106
113
101
103
113
112
106
96
135
151
115
150
125
121
"""ioo"
100
86
106
103
123
129
1,000 feet
Ton
98
Plaster . ..
113
Roofing
Square
Barrel
1,000 feet....
1,000 feet....
1,000 feet....
1,000 feet....
Each __
Each
Each
Each...
1,000
1,000
1,000 _.
Foot
Ton
100
111
Lumber, southern pine
boards.
Oak flooring . .
112
103
Dimension fir
114
Ponderosa pine boards.
No. 3.
Millwork, fir doors
Ponderosa pine window:
Glazed..
Frames
Ponderosa pine doors
Brick:
Common
Face
Tile, partition
Sewer pipe
106
135
150
120
150
100
121
108
111
Gravel
86
Sand
Ton
Ton
74
Stone...
110
Boilers:
Heating
Range
Each
Each
Each
Closets
Lavatory
Radiation
Each
Foot
Each
Each.
Each
Cubic yard..
Cubic yard..
11.53
.32
17.20
40.48
10.50
6.95
6.35
"""."32"
100
100
100
100
100
100
100
117
100
122
110
117
129
100
100
108
114
95
109
116
106
Sink
Bathtub
Laundry tub
Mixed concrete:
1-2-4
1-3-5
100
111
112
112
442
CONCENTkATION OF ECONOMIC POWER
Table 2. — Prevailing wage rates for selected construction occupations in Cleveland,
Ohio, and vicinity, 1938
Occupation
Hourly wage rates in—
Cleveland
Painesville
Medina
Wooster
Unskilled -
$0.90
1.63
.90
1.38
1.38
1.30
1.63
1.50
1.43
1.50
1.00
$0.60
1.63
.72
1.38
$0.50
1.50
.80
1.13
1.38
1.16
1.63
1.38
1.26
1.26
$1.60
Hod carrier -
.80
1.26
Cement finisher
1.25
Painter . . - -..
1. 20-1. 30
1.63
1. 23-1. 50
1.00
1.00
.72
1.16
1.50
Plumber -
1.28
Roofer . . -- .-
1.00
1.50
Tile layer helper . - ....
.80
Source: Work Projects Administration, Hourly Wage Rates for W. P. A. and for Private and Other
Public Construction, 1938, Selected Occupations, Washington, D. C, July 1939.
Table 1.
APPENDIX B
MISCELLANEOUS TABULAR DATA
-Cost of building the same standard house in representative cities in
June 1987^
Federal home-loan bank districts,
States, and cities
No. 1. Boston:
Connecticut:
Hartford
New Haven _,.
Maine: Portland. _.
Massachusetts: Boston
New Hamjjshire: Manchester..
Rhode Island: Providence
Vermont: Rutland
No. 4. Winston-Salem:
Alabama: Birmingham
District of Columbia: Washing-
ton
Florida:
Tampa
West Palm Beach
Georgia: Atlanta
Maryland:
Baltimore. -
Cumberland
North Carolina:
Asheville
Raleigh
Salisbury
South Carolina: Columbia
Virginia:
Richmond
Roanoke
No. 7. Chicago:
Illinois:
Chicago
Peoria
Springfield
Wisconsin:
Milwaukee
Oshkosh. .
No. 10. Topeka:
Colorado: Denver
Kansas: Wichita
Nebraska: Omaha...
Oklahoma: Oklahoma City
No. 2. New York:
New Jersey:
.Atlantic City
Camden
Newark
New York:
Albany
Buffalo
White Plains
No. 6. Indianapolis:
Indiana:
E vansville
Indianapolis
South Bend '.V...
Michigan:
Detroit
Grand Rapids
Total build-
ing cost
June 1937
$6, 365
5,933
5,916
6,487
0,888
5,932
5,710
6,077
6,234
5,716
6,411
5,410
5,402
5,732
4.968
5, 580
4.746
4, 886
5,248
5.391
7,260
6,833
6,980
6,780
6,087
6,712
5,927
5,«69
5.823
6.173
5. 866
6,474
6.048
6.501
6,857
5,816
5, 890
6,395
6,379
5,560
Federal home-loan bank districts,
States, and cities
No. 8. Des Moines:
Iowa: Des Moines.
Minnesota:
Duluth
St. Paul
Missouri:
Kansas City
St. Louis
North Dakota: Fargo
South Dakota: Sioux Falls.
No. 11. Portland:
Idaho: Boi.se
Montana: Great Falls
Oregon: Portland
Utah: .Salt Lake City
Washington:
Seattle
Spokane
Wyoming: Casper...
No. 3. Pittsburgh:
Delaware: Wilmington
Pennsylvania:
Harrisburg.
Philadelphia.
Pittsburgh
West Virginia: Charleston..
No. 5. Cincinnati:
Kentucky:
Lexington
Louisville
Ohio:
Cincinnati
Cleveland
Columbus
Tennessee:
Memphis
Nashville
No. 9. Little Rock:
Arkansas: Xittlo Rock
Louisiana:
New Orleans
Shrevcport..
Mississippi: Jackson
New Mexico: Albuquerque.
Texas:
Dallas
Houston
San Antonio
No. 12. Los Angeles:
Arizona: Phoenix
California:
Los Angeles
San Diego
San Francisco
Nevada: Reno
Total build-
ing cost
June 1937
$6, 483
6,373
6,911
6,198
6,512
6,062
6,263
6,273
7,134
5,990
6,375
6,642
6,796
5,737
6,186
5,944
6, 730
5,857
5,887
6,111
6,321
6,756
6,352
5,704
5,421
5,285
5,911
5,961
5,849
6,358
6,143
6,391
6,284
6,742
6,015
6,141
6.407
6,641
' Source: Federal Home Loan Bank Board.
,^L^ ^°"^"^ °° ^ .''w l"^'* ^^'\ ';<'Port''d is a detached 6-room home of 24,000 cubic feet volume. Living
room, dminj; room, kitchen and lavatory on first floor; 3 bedrooms and bath on second floor. Exterior is
us^d throughoiU ^ '*'"'''''° ^^ features of design. Best quality materials and workmanship
omI!!Lh°,"^^ '^ °°^ completed ready for occupancy. It includes all fundamental structural elements, an
fio^fV? Barape, an unfinL-^hcd ((liar, an unfinished attic, a fireplace, essential heating, plumbing, and
fncT finth r°^ f QU'Pment, and conu.U'io insulation. It does not include wallpaper nor other wall nor ceil-
strip^ng nor w7ndow shad ^" '''^' ''^''^'"K fixtures, refrigerators, water heaters, ranges, screens, weather
f^r^l'^,"'^'^. '^"•'"^ '"i'"^i' 'D afl'l't'on to material and labor costs, compensation insurance, an allowance
for contractor s overhead and tran.sportation of materials, i)lus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor
charg°eV, rlw sll« cosrs '^"'■'^^■^>'^' ^'"^>' ^^^ ""^ '°«^"de architect's fee, cost of building permit, financing
comrm"o4"LTo^;>?SbSd^^^^^ '^^ '""'' ^""^'°^ ""^^'"'^ "^' "'■^ '•^'"'"^'^ ^'■'"° '^'^ '^"^^ ^P"t«ble
275852 — 41— No. 33 — 30
443
444
CONCENTRATION OF ECONOMIC POWER
Table 2. — Dollar volume of residential building for which permits were issued
1937-39, and weighting factors for 50 selected cities
City
Portland, Maine--.
Manchester, N. H_.
Burlington, Vt
Boston, Mass
Providence, R. I--.
Hartford, Conn
New York, N.Y...
Trenton, N. J
Philadelpbiia, Pa--.
Cleveland, Ohio
Detroit. Mich :^
Indianapolis, Ind_-.
Chicago, 111
Milwaukee, Wis....
Minneapolis, Minn
Fargo, N. Dak
Sioux Falls, S. Dak
Des Moines, Iowa,.
Omaha, Nebr
Wichita, Kans
St. Louis, Mo
Wilmington, Del...
Baltimore, Md
Washington, D. C.
Charleston, W. Va.
Total per-
mit valua-
tion for
Weight-
new resi-
ing fac-
dential
tor
bulding
1937-39 1
$895, 845
0.069
1,243,447
.096
618, 000
.048
18, 764, 450
1.452
2, 363, 850
.183
2, 515, 641
.195
528, 773, 375
40. 928
2, 052, 987
.159
39, 875, 381
3.086
15, 334, 881
1.187
112,040,503
8.672
12, 372, 541
.958
42. 256, 012
3.271
10, 101, 975
.782
17, 448, 158
1.351
781, 800
.061
1, 698, 365
.131
6, 120, 336
.474
6, 179, 020
.478
4, 297, 618
.333
12,894,603
.998
2, 410, 596
.187
23, 740, 455
1.838
64,981,408
5. 030
7, 232, 494
560
City
Richmond, Va.
Charlotte, N. C
Charleston, S. C
Atlanta, Ga
Miami, Fla
Louisville, Ky
Memphis, Tenn
Birmingham, Ala
Jackson, Miss
Little Rock, Ark
Oklahoma City, Okla.
.Austin, Tex
Houston, Tex
New Orleans, La
Butte, Mont
Boise, Idaho
Cheyenne, Wyo
Denver, Colo
Salt Lake City, Utah.
Reno, Nev
Phoenix, Ariz
Albuquerque, N. Mex
Seattle, Wash
Portland, Oreg
Los Angeles, Calif
Total per-
mit valua-
tion for
new resi-
dential
building
1937-39 1
611,501
334, 527
626, 607
621, 726
898, 555
745, 895
273, 940
650,915
943, 917
733, 393
589, 095
907, 141
656, 334
864, 840
112,145
862, 385
387, 687
788, 351
757, 592
913, 400
003, 805
543, 783
482, 010
565, 270
098, 493
Weight-
ing fac-
tor
0. 357
.568
.203
1.054
2.237
.832
.873
.360
.305
.134
.820
.844
3.147
1.305
.009
.144
.185
1.067
.600
.226
.310
.274
.889
.973
9.760
t U. S. Bureau of Labor Statistics, Division of Construction and Public Employment.
CONCENTRATION OF ECONOMIC POWER
445
Table 3. — Index numbers of wholesale prices at low and high points, 1936 to
September 1939
[July-September 1939 = 100.0]
Material
Jan-
uary
1935
Low
Date
Index
High
Date
Index
Ratio
high to
low
Insulation board..
Plaster
Roofing
Lime, hydrated
Paint:
Outside
Inside _
Enamel
Varnish
White lead
Linseed oil
Turpentine
Dimension, fir No. 1
Flooring, oak, red..
Boards, ponderosa pine No. 3
Door, Fir No. 1
Window.Ponderosa pine No.l
Boiler, heating..
Radiation
Boiler, range
Closet
Lavatory
Sink
Tub, bath
Brick:
Common
Face - ,
Tile, floor.
Pipe, sewer
Qlass -
Sand
Gravel
Stone.
Concrete, 1-3-5
' Series begins January 1937
100.3
112.3
103.0
102.6
107.0
85.0
87.4
93.4
98 3
177.8
94.9
103.3
100.2
105.1
89.2
96.1
83.0
86.2
'94.2
96.6
88.0
84.7
90.1
92.1
108.3
99.1
92.1
98.0
97.9
102.5
104.0
December 1935
May-June 1938....
March 1939
September-De-
cember 1936.
December 1936-
March 1937.
September 1939....
January - August
1935.
do.
April - September
1938.
September 1935
September 1938.-.
January-April
1935.
December 1935-
September 1936.
October 1936
September 1939....
January 1935-Au-
gu,st 1935.
November 1937-
March 1938.
January-July 1935.
January 1935-
April 1936.
January-Febru-
ary 1935.
April-June 1935...
do-... -.--
January-March
1935.
August-Decem-
ber 1935.
January-Decem-
ber 1935.
December 1936-
February 1937.
April-May 1935...
January-Decem-
ber 1935.
April-May 1937..-
March-April 1937-
November 1936
May-July 1939
99.4
98.5
93.8
94.0
98.7
85.0
87.4
89.3
92.6
85.6
94.9
83.8
92.7
100. 0
89.2
90.3
83.0
86.2
94.2
92.2
84.5
84.7
90.0
92.1
99.2
98.1
92.1
94.5
93.2
95.8
January-August
1935, April 1936.
April-August 1935
March-April 1937.
December 1937
January 1935-
August 1939.
January 1935-
November 1936.
September 1939...
do
March- August
1937.
July-August 1937..
February 1935
March-August
1937.
September 1937....
March-October
1937.
August-Novem-
ber 1937.
September 1937-
December 1937.
September-Octo-
ber 1937.
June 1938
April 1937-Febru-
ary 1938.
February 1939
April-July 1937....
April 1937
August-Decem-
ber 1937.
April- August 1937.
February 1939
May- August
1937.
June-December
1937.
January 1938-Sep-
tember 1939.
May 1939-
December 1938
December 1937
May-June 1938....
100.0
101.5
129.7
106.7
102.6
107.0
102.2
103.9
108.1
121.5
186.2
108.1
120.9
106.2
124.8
109.8
111.4
100.0
120.2
100.0
108.6
109.5
103.6
100.9
100.0
109.1
100.1
100.0
101.8
109.4
108.9
105.4
115. 3
102.1
1317
113.8
109.1
108.4
120.2
118.9
121.1
131.2
?'7.6
1. 9
145.3
114.6
124.8
123.1
123.4
120.5
139.4
106.2
117.8
129.6
122.3
112.1
108.6
110.0
102.0
108.6
107.7
117.4
113.7
106.6
446
CONCENTRATION OF ECONOMIC POWER
Table 4, — Index numbers of retail prices at low and high points, 1935 to September
1939
[July-September 1939=100.0]
Material
Janu-
ary
1935
Low
Date
Index
High
Date
Index
Katio
high
to low
Insulation board
Plaster
Roofing - -
Lime, hydrated
Paint:
Outside
Inside
Enamel -
Varnish
White lead
Linseed oil
Turpentine
Dimension, fir No. 1
Flooring, oak, red
Boards:
Ponderosa pine No. 3
Northern pine No. 3
Door, fir No. 1
Boiler, heating. .-.
Radiation
Boiler, range
Closet
Lavatory
Sink
Tub, bath
Brick:
Common _
Face
Pipe, sewer
Sand
Gravel
Stone
Concrete, 1-3-5
1 Series begins January 1937.
99.2
106.0
117.6
102.7
104.3
101.1
98.0
100.1
97.8
98.7
126.3
96.1
93.5
91.3
92.7
96.2
100.1
90.4
100.5
«94.2
97.4
88.0
84.7
96.1
94.8
93.2
98.0
97.9
102.5
104.0
January 1936 and
1937.
September 1939...
July-September
1939.
do
September 1939...
June 1938-Septem-
ber 1939.
Januarv-Decem-
ber 1935.
June 1938.
March-Septem-
ber 1938.
August 1938
August 1939
April 1935
December 1935...
January-Febru-
ary 1935.
January-April
1935.
January-June
1935.
April 1938
January-May
1935.
August 1938
January-Febru-
ary 1935.
April-June 1935...
do -.
January-March
1935.
November 1935....
January-June
1935.
October-Novem-
ber 1935.
April-May 1937...
March-April 1937.
November 1936....
May- July 1939....
99.0
97.7
100.0
100.0
97.4
100.0
98.0
99.5
91.1
96.6
95.3
90.0
91.3
92.7
96.2
97.5
90.4
99.9
94.2
92.9
84.5
84.7
95.9
94.8
90.7
94.5
93.2
95.8
99.8
June 1939, on
December 1937...
July-September
1937.
July 1936-.--
May ie37-April
1938.
October-Decem-
ber 1935.
January-Septem-
ber 1939.
October 1935-No-
vember 1936.
March-Decem-
ber 1937.
August-Septem-
1937.
January 1936
February 1937
June and August
1937.
June-August 1937
May 1938
September 1939--.
September 1937--.
July 1938
January-Febru-
ary 1938.
February 1939
April-July 1937-..
April 1937
August-Decem-
ber 1937.
April-May 1939-..
August-Septem-
ber 1938.
April 1939
May 1939 --..
December 1938
December 1937
May-June 1935....
100.0
106.2
123.8
103.6
104.9
101.2
100.0
100.6
106.7
111.4
128.9
102.9
108.9
105.8
108.3
100.1
106.0
100.0
104.0
100.0
108.6
109.5
103. 6
101.6
100.4
100.0
101.8
109,4
108.9
105.4
101.0
108.7
123.8
103.6
107.7
101.2
102.0
101.1
117.1
115.3
130.3
108.0
121.0
115.9
116.8
104.1
108.7
110.6
104.1
106.2
116.9
129.6
122.3
105.9
105.9
110.3
107.7
117.4
113.7
105.6
APPENDIX C
COMMODITY SPECIFICATIONS FOR BUILDING MATERIALS
INCLUDED IN SURVEY
INSULATION BOARD
Specification: Board, building, insulation, standard K by 48 inches,
standard lengths; per M square feet.
Wholesale: Carlo ts, manufacturer to retail distributor, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
PLASTER
Specification: Plaster, neat, base coat, gypsum; per ton, in 100-
pound paper bags.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
ASPHALT STRIP SHINGLE ROOFING
Specification: Roofing, asphalt strip shingles, square butt, three
in 1 strip, approximately 210 pounds per square; per square.
Wholesale: Carlots, manufacturer to retail distributor, f. o. b.
cars destination.
Retail: Dealer to contractor, dehvered to job site, city.
PORTLAND CEMENT
Specification: Cement, portland; per barrel.
Wholesale: Gross in cloth, carlots, manufacturer to dealer, f. o. b.
cars destination.
Retail: In paper bags, dealer to contractor, delivered to job site,
city.
HYDRATED LIME
Specification: Lime, hydrated, building, mason's, in paper bags;
per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city.
LUMP LIME
Specification: Lime, lump, common, bulk; per ton.
Wholesale: Carlots, producer to retail dealer, f. o. b. cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city.
447
448 CONCENTRATION OF ECONOMIC POWER
OUTSIDE HOUSE PAINT
Specification: Paint, outside house, white, gloss, mixed, first quality;
per gallon, in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f. o. br cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city,
INSIDE HOUSE PAINT
Specification: Paint, inside house, white, flat, mixed, first quality;
per gallon, in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f, o. b. cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city.
INTERIOR ENAMEL
Specification: Enamel, interior, white, quick-drying, gloss, mixed,
first quality; per gallon, in gallon cans.
Wholesale: Manufacturer to wholesale dealer, f, o. b. cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city.
INTERIOR VARNISH
Specification: Varnish, interior, mixed, first quality; per gallon, in
gallon cans. '
Wholesale: Manufacturer to wholesale dealer, f. o. b. cars destina-
tion.
Retail: Dealer to contractor, dehvered to job site, city.
WHITE LEAD
Specification: Lead, white, carbonate, in oil, first quality; per
pound, in kegs.
Wholesale: Producer to retail dealer, f. o. b. cars destination.
Retail: Dealer to contractor, dehvered to job site, city.
LINSEED OIL
SpecificS,tion: Oil, linseed, raw.
Wholesale: Per pound, in barrels, carlots, producer to retail
dealer, f. o. b. cars destination.
Retail: Per gallon; dealer to contractor, dehvered to job site, city.
TURPENTINE
Specification: Turpentine, gum spirits; per gallon.
Wholesale: In barrels, carlots; producer to retail dealer, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER 449
ZINC OXIDE
Specification: Zinc oxide, French process; per pound, in bags.
Wholesale: Carlots; producer to retail dealer, f. o. b. cars destina-
tion.
Retail: Dealer to contractor, delivered to job site, city.
DOUGLAS FIR DIMENSION
Specification: Douglas fir, dimension. No. 1 common, 2- by 4-inch
by 16-foot, S4S; per AI board feet.
Wholesale: Carlots in mixed cars, mill to retail yard, f. o. b. cars
. destination.
Retail: Dealer to contractor, deUvered to job site, city.
OAK FLOORING
Specification: Oak, red, flooring, select, plain, ^%6- by 2%-inch
face, average length 4 feet; per M board feet.
Wholesale: Carlots in mixed cars, mill to retail yard, f. o. b; cars
destination.
Retail: Dealer to contractor, delivered to job site, city.
SOUTHERN PINE BOARDS
Specification: Pine, southern, boards, No. 2 common, 1 by 8 inches,
standard lengths, short leaf; per M board feet.
Wholesale: Carlots in mixed cars, mill to retail yard, f. o. b. cars
destination.
Retail: Dealer to contractor, delivered to job site, city.
PONDEROSA PINE BOARDS
Specification: Pine, ponderosa, boards, No. 3 common, 1 by 8
inches, random lengths; S2 or 4S; per M board feet.
Wholesale: Carlots in mixed cars, mill to retail yard, f . o. b. cars
destination.
Retail: Dealer to contractor, delivered to job site, city.
NORTHERN PINE BOARDS
Specification: Pine, white, northern, boards, No. 3, 1 by 8 inches,
standard lengths; per M board feet.
Wholesale: Carlots in mixed cars, mill to retail yard, f. o. b. cars
destination.
Retad: Dealer to contractor, delivered to job site, city.
DOUGLAS FIR INTERIOR DOORS
Specification: Doors, Douglas fir. No. 1, interior, five cross panels,
sohd stUes and rails, 2 feet 8 inches by 6 feet 8 inches by 1% inches;
each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
450 CONCENTRATION OF ECONOMIC POWER
PONDBROSA PINE INTERIOR DOORS
Specification: Doors, ponderosa pine, No. 1, interior, five cross
panels, solid stiles and rails, 2 feet 8 inches by 6 feet 8 inches by 1%
inches; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
PONDEROSA PINE WINDOWS
Specification: Windows, ponderosa pine, No. 1, two light, check rail,
1% inches thick, 24 by 24 inches, glass size, "western" opening^ each.
Wholesale: Open, cariots in mixed cars, manufacturer to jobber,
f. o. b. cars destination.
Retail: Glazed and/or open, dealer to contractor, delivered to job
site, city.
PONDEROSA PINE WINDOW FRAMES
Specification: Window frames, ponderosa pine, clear grade, for frame
building, two light, 26 by 28 inches, glass size, plain drip cap, solid
sill; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
SOUTHERN PINE WINDOW FRAMES
Specification: Window frames, southern pine, for frame building,
two light,f or 26 by 28 inches, glass size, plain drip cap, solid sill ; each.
Wholesale: Carlots in mixed cars, manufacturer to jobber, f. o. b.
cars destination.
Retail: Dealer to contractor, delivered to job site, city.
HEATING BOILERS
Specification: Boilers, heating, hand fired, for anthracite and bitu-
minous coal and coke, square jacketed, standard fittings, including
brush and firing tools approximately 380 square feet, installed steam
radiation; each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
RADIATION
Specification: Radiation, cast iron, 26 inches high; per square foot.
WholesMe: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
CONCENTRATION OF ECONOMIC POWER 451
RANGE BOILERS
Specification: Boilers, range, 30-gallon, standard galvanized, electric
weld, 85-poiLnd working pressure; each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
COMBINATION CLOSETS
Specification: Closets, combination, vitreous china, two piece, close
coupled, syphon action, round front with low tank, complete with
chromium plated fittings, white sheet covered seat and cover, china
bolt caps, chromium plated stop in supply; each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
RetaU: Distributor to plumbing contractor, deHvered to job site,
city.
ENAMELED IRON LAVATORIES
Specification: Lavatories, enameled iron, 20 by 18 inches, apron
front, wall hung, separate compression faucets with plug, chain and
stopper, stop in supply, P trap, all exposed brass chromium plated;
each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
ENAMELED IRON SINKS
Specification: Sinks, enameled iron, 42 by 20 inches, roll rim, com-
bination double faucet, strainer, P trap; each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
ENAMELED IRON BATH TUBS
Specification: Tubs, bath, 5-foot enameled cast iron, recess tub with
apron front, complete with tub and shower fittings with transfer valve,
iK-inch connected drain and overflow, 5-foot chromium plated rod
with 8-ounce white duck curtain and pins; each.
Wholesale: Manufacturer's list with discounts, manufacturer to
jobber, f. o. b. cars destination.
Retail: Distributor to plumbing contractor, delivered to job site,
city.
COMMON BRICK
Specification: Brick, common, building; per M.
Wholesale: Producer to dealer and user, delivered to job site.
Retail: Producer or dealer to contractor, delivered to job site,
city.
452 CONCENTRATION OF ECONOMIC POWER
FACE BRICK
Specification: Brick, face, standard colonial red, smooth; per M.
Wholesale: Producer to dealer and user, delivered to job site.
Retail: Producer or dealer to contractor, delivered to job site,
city.
HOLLOW BUILDING TILE
Specification: Tile, hollow building, partition, 4 by 12 by 12 inches,
three cell, scored, 16 pounds weight; per M.
Wholesale: Producer to contractor, delivered to job.
Retail: Producer or dealer to contractor, delivered to job site,
city.
FLOOR TILE
Specification: Tile, floor, 1-inch hexagon, standard grade, color
group 1 (white, red, or gray); per square foot.
Wholesa^le: Producer to contractor, delivered to job.
SEWER PIPE
Specification: Pipe, sewer, 6-foot, vitrified; per foot.
Wholesale: Producer to dealer, carlots, f. o. b. cars destination.
Retail: Producer or dealer to contractor, delivered to job site,
city.
WINDOW GLASS
Specification: Glass, window, single strength, B quality.
Wholesale: 48-inch bracket; per 50 square feet, packaged, carlots,
manufacturer to jobber, f. o. b. cars destination.
Retail: 24 by 24 inches. Per light, dealer to contractor, delivered
to job site, city.
SAND
Specification: Sand, concrete, one-half inch maximum, No. 6 mesh
screen; per ton. (Priced per ton or per yard in accordance with local
custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
GRAVEL
Specification: Gravel, coarse aggregate for concrete, IK inches
maximum; per ton. (Priced per ton or per yard in accordance with
local custom but converted to per ton basis in all cases.)
Retail: Producer; to contractor, delivered to job site, city.
CRUSHED STONE
Specification: Stone, crushed, coarse aggregate for concrete, lYi
inches maximum; per ton. (Priced per ton or per yard in accordance
with local custom but converted to per ton basis in all cases.)
Retail: Producer to contractor, delivered to job site, city.
CONCENTRATION OF ECONOMIC POWER 453
READY MIXED CONCRETE 1-3-5
Specification: Concrete, 1-3-5, ready-mixed, portland cement; per
yard.
Retail: Producer to contractor, delivered to job site, city.
READY MIXED CONCRETE 1-2-4
Specification: Concrete, 1-2-4, ready-mixed, portland cement; per
yard.
Retail: Producer to contractor, delivered to job site, city.
5^
a
INDEX
AREAS OF PRODUCTION. (See Production areas.)
BATHTUBS. {See Materials and products.) Page
BLAISDELL, PHILIP H in, xx, xxii
BOILERS, HEATING AND RANGE. {See Materials and products.)
BRICK. {See Materials and products.)
BUILDING:
Costs 439-443
Values 444
BYERS, HERMAN B.: Wage rates and hours of labor in the building
trades (1936); cited 3
CEMENT. {See Materials and products.)
CENSUS OF BUSINESS (1935); cited 20
CENSUS OF MANUFACTURERS; cited 12,29,123,175,
189, 205, 219, 235, 257, 269, 281, 285, 287, 303, 317, 351, 379, 403
CLOSETS. {See Materials and products.)
CONCLUSIONS. {See Summary statements and conclusions.)
CONCRETE. {See Materials and products.)
COSTS. {See Building costs.)
CUTTS, JESSE M xxii
DAVISON, ROBERT L 2
DELIVERY PRACTICES 30, 47, 48, 69, 125, 126, 205, 287, 288, 320, 369
DICKINSON, HAROLD L xxii
DISCOUNTS. {See also Pricing practices, freight rates) 18,
19, 30, 31, 48, 68, 127, 128, 221, 260, 283, 319, 352, 369, 382, 383
DISTRIBUTION OF MATERIALS TO CONSUMER 20-22,
29, 30, 48, 66-69, 73, 91, 126, 205, 220, 238, 271, 319, 368, 332, 404
DOORS. (See Materials and products.)
ENAMEL. {See Materials and products.)
FEDERAL HOME LOAN BOARD: Federal home loan review; cited, . 3
FEDERAL TRADE COMMISSION: The basing-point formula and
cement prices (1932); cited 91
FRAZIER, ARTHUR W xxil
FREIGHT RATES. (See aZso Delivery practices) 88,
237-241, 320, 351, 352, 404, 406
GLASS. (See Materials and products.)
GRAVEL. (See Materials and products.)
GROSVENOR, GRACE F iii, xx, xxii
HILTS, H. E (See National Recovery Administration.)
HINRICHS, A. F.: Trends of employment opportunity (1940); cited.. 1
INSULATING BOARD. (See Materials and products.)
INTERSTATE COMMERCE COMMISSION: Statement No. 3747 (Oct.
1937) ; cited 2
JOY, ARYNESS iii, xx, xxii
KEIM, WILLIAM G in, xx, xxn
KENT, MARY L xxii
KREPS, THEODORE J 2,5
LEAD, WHITE. (See Materials and products.)
LESLEY, R. W.: History of the portland-cement industry in the United
States (1924); cited 89
LETHCO, JOSEPH W 1 in, xx, xxii
LIME, HYDRATED AND LUMP. (See Materials and products.)
LINSEED OIL. (See Materials and products.)
LINTON, JOHN M xxn
LOONEY, WARREN F xxn
LUBIN, ISADOR . xx, 1,2
455
456
INDEX
LUMBER. (See Materials and products.) Page
MARKET STRUCTURE 13-22
MARTIN, RAY C: Glossary of paint, varnish, lacquer and applied
terms (1937); cited 205
MATERIALS AND PRODUCTS, passim; see espec:
Asphalt roofing 65-88, 440, 441, 445-447
Cement 89-103, 440, 441, 447
Clay products 379-402
Brick:
Common 379, 383, 384, 385, 387, 391-395, 441, 445, 446, 451
Face 379, 384-386, 396-400, 441, 445, 446, 452
Sewer pipe 379, 389, 390, 402, 441, 445, 446, 452
Tile:
Floor 379, 388, 389, 402, 445, 452
Hollow 379, 386, 388, 401, 441, 452
Concrete, ready-mixed 431-438, 441, 445, 446, 453
Doors 285-302, 441, 445, 446, 449, 450
Douglas fir 219-233,441,445,446,449
Heating equipment 317-350
Boilers 321-335, 441, 445, 446, 450
Radiation 336-350, 441, 445, 446, 450
Insulation board 29-45, 440, 441, 445-447
Lime:
Hydrated 105-121, 440, 441, 445-447
Lump 447
Linseed oil 189-203, 445, 446, 448
Miscellaneous 5-28
Oak flooring 235-255,441,445,446,449
Paints and varnishes 123-173
Enamel 151-161,445,446,448
Inside paint 140-150, 445, 446, 448
Outside paint 128-139, 445, 446, 448
Varnish 162-173,445,446,448
Plaster 47-65, 440, 441, 445-447
Pine, ponderosa 269-279,441,445,446,449
Pine, white 281-283,446,449
Pine, yellow 257-268,441,449
Plumbing supplies 365-377
Bathtubs 371, 372, 377, 441, 445, 446, 451
Closets 370, 372, 374, 441, 445, 446, 451
Lavatories 370, 372, 375, 441, 445, 446, 451
Sinks 371, 372, 376, 441, 445, 446, 451
Range boilers 351-364,441,445,446,451
Sand, gravel, crushed stone 409-430
Gravel 411, 413, 420-425, 441, 445, 446, 452
Sand 414,415,425-430,441,445,446,452
Stone 411-420, 441, 445, 446, 452
Specifications 447-453
Turpentine 205-218,445,446,448
White lead 175-187, 445, 446, 448
Window glass 403-407,445,452
Windows 303-316, 441, 445, 450
Zinc oxide 449
METHOD OF STUDY. {See Purpose, method and scope.)
MILLER, MARTIN H xxii
MINSON, ELIZABETH V xxn
NAGEL, H. A - 126
NATIONAL RECOVERY ADMINISTRATION, DIVISION OF RE-
SEARCH AND PLANNING: The manufacturing capacity, volume,
and costs of portland cement in the United States (1934); cited 89, 90
NATIONAL RESOURCES COMMITTEE: Structure of the American
economv ; cited 13
NELSON. SAUL xx, xxii
O'MAHONEY, JOSEPH C iii, xix
PAINTS. {See Materials and products.)
Patman Act 19
INDEX 457
FIFE, SEWER. (See Materials and products.)
FLASTER. (See Materials and products.)
PLUMBING SUFFLIES. (See Materials and products.)
FRICES:
Computation. (<See Geographical variations.) Page
Geographical variations; passim, see espec 3, 70, 91, 92,
107, 175, 190, 206, 241, 242, 259, 272, 289, 305, 321, 336, 405, 431
Composite United States 36, 54, 75, 78, 94,
112, 130, 140, 151, 164, 178, 194, 209, 224, 246, 263, 274, 293, 308,
326, 341, 356, 374-377, 388-391, 396, 401, 407, 414, 420, 425, 432.
East North Central __ 4
25-27, 33-35, 39, 51, 52, 57, 71, 75, 77, 81, 93, 97, 109-111, 115,
129, 133, 141, 144, 153, 155, 163, 167, 176, 177, 181, 190, 192, 193,
197, 206, 208, 212, 223, 227, 241-245, 249, 262, 266, 272, 273, 276,
288-291, 296, 307, 310, 323-325, 329, 339, 340, 344, 353, 355, 359,
383, 385-390, 392, 397, 410-415, 417, 422, 427, 431, 433, 435.
Middle Atlantic _ 4
25-27, 33-35, 38, 51, 52, 56, 71, 75, 77, 80, 93, 96, 109-111, 114,
129, 132, 141, 143, 152, 154, 163, 166, 176, 1*77, 180, 190, 192, 193,
196, 206, 208, 211, 223, 226, 241-245, 248, 262, 265, 288-291, 295,
307, 310, 323-325, 328, 339, 340, 343, 353, 355, 358, 383, 385-390,
392, 397, 410-416, 421, 426, 431, 433, 434.
East South Central _ 4,
5, 25-27, 33-35, 42, 51, 52, 60, 71, 75,-77, 84, 93, 100, 109-111, 118,
129, 136, 141, 147, 153, 158, 163, 170, 176, 177, 184, 190, 192, 193,
200, 206, 208, 215, 223, 230, 241-245, 252, 262, 268, 288-291, 299,
307, 313, 323-325, 332, 339, 340, 347, 353, 355, 362, 383, 385-390,
394, 399, 410-415, 418, 423, 428, 431, 433, 436.
New England 4,
25-27, 33-35, 37, 51, 52, 55, 71, 75, 77, 79, 93, 95, 109-111, 113,
129, 131, 141, 142, 152, 153, 163, 165, 176, 177, 179, 190, 192, 193,
195, 206, 208, 210, 223, 225, 239-245, 247, 262, 264, 272, 273, 275,
288-291, 294, 307, 309, 323-325, 327, 336, 339, 340, 342, 353, 355,
357, 383, 385-390, 391, 396, 410-416, 421, 426, 431, 433, 434.
Pacific 4,
5, 25-27, 33-35, 45, 51, 52, 63, 71, 75, 77, 87, 93, 103, 109-111, 121,
129, 139, 141, 150, 153, 160, 163, 173, 176, 177, 187, 190, 192, 193,
203, 206, 208, 218, 223, 233, 241-245, 255, 272, 273, 279, 288-291,
302, 307, 316, 323-325, 335, 339, 340, 350, 383, 385-390, 395,
410-415, 420, 425, 430, 431, 433, 438.
Rocky Mountain . _ 4,
5, 25-27, 33-35, 44, 51, 52, 62, 71, 75, 77, 86, 93, 102, 109^111, 120,
129, 138, 141, 149, 153, 160, 163, 172, 176, 177, 186, 190, 192, 193,
202, 206, 208, 217, 223, 232, 241-245, 254, 272, 273, 278, 288-291,
301, 307, 315, 323-325, 334, 339, 340, 349, 353, 355, 364, 383,
385-390, 395, 400, 410-415, 419, 424, 429, 431, 433, 437.
South Atlantic _ _ _ 4,
25-27, 33-35, 41, 51, 52, 59, 71, 75, 77, 83, 93, 99, 109^111, 117,
129, 135, 141, 146, 153, 157, 163, 169, 176, 177, 183, 190, 192, 193,
199, 206, 208, 214, 223, 229, 241-245, 251, 262, 267, 288-291, 298,
307, 312, 323-325, 331, 339, 340, 346, 353, 355, 361, 383, 385-390,
393, 398, 410-415, 418, 423, 428, 431, 433, 436.
West North Central ._. ._ 4,
25-27, 33-35, 40, 51, 52, 58, 71, 75, 77, 82, 93, 98, 109-111, 116,
129, 134, 141, 145, 153, 156, 163, 168, 176, 177, 182, 190, 192, 193,
198, 206, 208, 213, 223, 228, 241-245, 250, 272, 273, 277, 288-291,
297, 307, 311, 323-325, 330, 339, 340, 345, 353, 355, 360, 383,
385-390, 393, 398, 410-415, 417, 422, 427, 431, 433, 435.
West South Central 4,
5, 25-27, 33-35, 43, 51, 52, 61, 71, 75, 77, 85, 93, 101, 109-111, 119,
129, 137, 141, 148, 153, 159, 163, 171, 176, 177, 185, 190, 192, 193,
201, 206, 208, 216, 223, 231, 241-245, 253, 288-291, 300, 307, 314,
323-325, 333, 339, 340, 348, 353, 355, 363, 383, 385-390, 394, 399,
400, 410-415, 419, 424, 429, 431, 433, 437.
458 INDEX
PRICES— Continued. Page
Levels and trends 22-45,49-63,
70-87, 91-103, 107-121, 128-173, 175-187, 190-203, 206-218,
222-233, 238-255, 260-268, 272-278, 283, 289-302, 305-316,
321-350, 352-364, 370-377, 383-402, 405, 407, 409-438, 445, 446.
Monthly indexes 36-45, 54-63,
75, 78-87, 93-103, 110-121, 129-173, 176-187, 192-203, 208-218,
223-233, 243-255, 262-268, 272-278, 291-302, 307-316, 324-335,
339-350, 356-364, 374-377, 385-402, 407, 412-430, 433-438.
Pricing practices 13-17, 31, 66-68,
91, 125, 126, 175, 189, 238, 271, 287, 305, 317, 381, 439-442.
Retail. {See Levels and trends.)
Wholesale. {See Levels and trends.)
PRODUCTION AREAS 11-13, 66, 67, 73, 91, 105, 106, 123, 125, 189,
205, 219, 220, 235, 236, 257-259, 269-271, 281, 282, 285, 286,
303-305, 317, 318, 351, 365-367, 379-381, 403, 409, 410
PRODUCTS. {See Materials and products.)
PURPOSE, METHOD AND SCOPE . xix-xxii, 4-10
RADIATION. {See Materials and products.)
REFERENCES TO LITERATURE AND SOURCES:
1. Byers, H. B.: Wage rates and hours of labor in the building trades
(1936); cited 3
2. Census of business (1935); cited 20
3. Census of manufactures; cited 12, 29, 123, 175, 189, 205, 219, 235,
257, 269, 281, 285, 287, 303, 317, 351, 379, 403
4. Federal Home Loan Board: Federal home loan review; cited 3
5. Federal Trade Commission: The basing-point formula and cement
prices (1932); cited 91
Hilts, H. E. {See National Recovery Administration.)
6. Hinrichs, A. F.: Trends of employment opportunity (1940); cited. _ 1
7. Interstate Commerce Commission: Statement No. 3747 (Oct.
1937) ; cited 2
8. Lesley, R. W.: History of the Portland cement industry in the
United States (1924); cited 89
9. Martin, R. C: Glossary of paint, varnish, lacquer and applied
terms (1937) ; cited 205
10. National Recovery Administration, Division of Research and
Planning: The manufacturing capacity, volume and costs of Port-
land cement in the United States (1934) ; cited 89, 90
11. National Resources Committee: Structure of the Americane con-
omy ; cited 13
Temporary National Economic Committee:
12. Hearings; cited 1-3
13. Monograph No. 1 (1940); cited 14
United States Bureau of Labor Statistics:
14. Building construction in principal cities of the United States;
cited 289
15. Mimeographed release (Feb. 22, 1940); cited 1
16. Price behavior and business policy ( 1 940) ; cited 14
17. Unpublished data; cited 9
18. United States Bureau of Mines: Minerals year-book; cited 12,
47, 90, 105, 409
19. Work Projects Administration: Hourly wage rates for W. P. A.
and for private and other public construction, 1938 (1939) ; cited 3,
440, 442
ROOFING. {See Materials and products.)
SAND. {See Materials and products.)
SCOPE OF STUDY. {See Purpose, method, and scope.)
SINKS. {See Materials and products.)
STONE. {See Materials and products.)
SUMMARY STATEMENTS AND CONCLUSIONS 1-4,11-28
TEMPORARY NATIONAL ECONOMIC COMMITTEE:
Hearings; cited 1-3
Monograph No. 1 (1940); cited 14
INDEX 459
TILE. (See Materials and products.) Page
TOPKIS, BERNARD xxii
TURPENTINE. (See Materials and products.)
UNITED STATES BUREAU OF LABOR STATISTICS:
Building construction in principal cities of the United States; cited. _ 289
Mimeographed release (Feb. 22, 1 940) ; cited 1
Price behavior and business polic}' (1940) ; cited 14
Unpublished data; cited 9
UNITED STATES BUREAU OF MINES: Minerals yearbook; cited.- 12,
47, 90, 105, 409
VALUES. (See Building values.)
V^ARNISH. (See Materials and products.)
WINDOWS. (See Materials and products.)
WINSTEAD, VIVIENNE xxii
WORK PROJECTS ADMINISTRATION: Hourly wage rates for Work
Projects Administration and for private and other public construction
1938 (1939); cited 3, 440, 442
ZINC OXIDE. (See Materials and products.)
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