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

^^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 
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 


100.0 


100.0 


100 


100.0 


100.0 


100.0 


100.0 


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 
100.0 
100.0 



100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100. 
100.0 
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. 


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. 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 



100.0 
100.0 
100.0 
100.0 
100.0 
100.0 



100.0 
100.0 
100.0 
100.0 
100.0 
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. 
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 


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 



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 
100.0 



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 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 



$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 





$5.00 to $5.24 . 


$7.00 to $7.24. 


6 


$5.25 to $5.49 .. 


$7.25 to $7.49 





$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 


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 





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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. 
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 


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 



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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 
















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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. 
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 



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. 






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 







October 





Jane 


November - 





July -. ... 


December 





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 
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. 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
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. 
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. 


98.3 


100.0 


98,3 


100.0 


08.3 


100. 


103. 7 


100. 



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 

• 




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! 






^ *"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 


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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. 
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. 
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. 
100.0 
100.0 
100.0 
100 



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 


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 


April 


100 


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. 
100.0 
100.0 
100. 
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. 
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. 
100. 
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. 
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. 


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 
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. 
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. 


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 



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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* 































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LcJ 


^.c»j y/-| ^ 






1 


J V 


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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' 






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ON n 


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/ 


^ 


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__ l| muil' 


ir 


■-tr 






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REGION 


in - EAST NORTH CENTRAL 






















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■\ / Vn r 


A/ 






i^W=W nr 


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REGION •mn - ROCKY MOUNTAIN 





REGION 


H - WEST NORTH CENTRAL 






















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■OUULC 












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1 


r-^-u.. 


ZL 






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ua^«- 


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REGION 


ai- 


EAST SOUTH CENTRAL 




























1 


BOl.t««.l' 


F-=^ 


ks 








1 


, 


^ 






H 


rv '^ 


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REGION 


m - WEST SOUTH CENTRAL 




















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REGION 


IX - PACIFIC 






































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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. . . 


$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. 
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. 
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 C ENTRAL 





















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. 


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. 
105.0 
105.0 
105.0 
105.0 
105. 
105.0 
105. 
105. 
105. 
112.0 
112.0 



110.0 
110.0 
110.0 
110.0 
110.0 
lOfi. 
100.0 
106.0 
106. 
106.0 
106.0 
106.0 



110.0 
114.0 

11,;. 

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. 
100.0 
100, 
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 


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. 
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. 
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 
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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' "T^ / 


7 


oo 




"4 


^L/^^ 


y 


lllO. 

a. 
u. 

kJO 

H 

Ul -1 

5^ 




j^^f«> 


v^ ^$v$s^§v^§^ -#<^ 


^S\N\\^^ 


2j 




1 y^^y/Jl^ 


^^^^^ ^^^ 


^^^ 


IS 




1 


^^^^^p 


p^ 


2u. 




1 
1 

\ 


^^^^^^ 




U.O 





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. 
100. 
1110. 
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 
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. 
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, 
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 

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. 


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. 
100.0 
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. 
100.0 
100.0 
100.0 
100.0 
■ )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. 


April 




June 


100. 


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 


February 


October 




100.0 


March 


November 


May 


100 


April 


December 




100.0 


May 


1937 
January 


July 


100.0 


June 


August 


100 


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 


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. 
100.0 
100.0 
100.0 
100. 
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. 
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 


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. 


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 


September 


March 


100.0 


October... . 


April . 


100 


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 


July 


100 


August. 


February 

March 


100.0 


September 


100.0 


October 


April 

May 

June 

July 

August 

September... 


100 


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. 
lliO.O 
100.0 
lUO. 



iiin. 
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 


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 


March.. 


May 


100.0 


April... 

May , 


1938 
January 

February 


June .- 

July' 


100.0 
100 


June . 


August 

September 


100 


July 


100 


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 

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. 
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. 
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. 


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 


1936 


August 


1(H) 


January . . 


September ..... 


March 

April 

May.. 

June... 

July 

August 

September 


100 U 




October 


100.0 


March . . 


November . . 


100 


April 


December 


100 


May 


1938 

January 

February 


100.0 


June . 


100 


July 


100 


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. 
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. 
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. 
100.0 
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. 


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. 
100.0 


February 

March... 


October 

November . 

December... 

1938 

January 

February 


100.0 
100.0 


April 


100. 


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. 
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. 
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). 
100 
iOO. 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 



IOO. 
100. 
100.0 
100.0 
100.0 
100. 
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. 


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. 
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. 



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. 



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. 



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 


July 


100 















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. 
110. 
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 
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. 
100. 
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. 



2 
8 



3 

7 





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. 

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: Distrib