XX. MANUFACTURES S. N. D. NORTHI Statistics of Manufactures. It is degree of success attending the enterimpossible to make even an approx-prise; upon stocks of materials on imate estimate of the value of the hand; manufactured goods on hand, manufactured products of the great and stock in process of manufacture, nations; few of them undertake a together with book accounts, these census of manufactures and these are items being subject to liabilities outpartial and defective. The United standing. It is impossible to procure States was the first country to at- from manufacturers an accurate baltempt such a census, and attains re- ance of these items, upon which a sults more definite than are secured uniform determination of capital inelsewhere. Statistics of manufactures vestment can be based; and it is are found to be the most complicated therefore the judgment of experts of any branch of statistics, not ex- that the amount of capital invested cepting vital statistics, and some of in manufactures, as reported by the the difficulties are apparently insur- United States Census, is of no great mountable. They are due to the value, and that these statistics should enormous variety in products and the be abandoned as misleading. It is a impossibility of making accurate clas- problem somewhat similar to that sifications; to the extensive existence which arises in connection with the of so-called industrial combinations physical and commercial valuation of controlling many establishments in railroads. The British "Census of different states, many of which pro- Production" does not attempt to duce semifinished products sold to state the amount of capital invested others; to the duplication of product in British manufactures. It is inwhich thus results, swelling the nom-teresting to compare the amount of inal volume of production far beyond its actual quantity and value; to the different methods of wage payments prevailing, either by the day, the week, or the piece; and so many standards of piece payment prevail that an accurate determination of an average wage is impossible. capital invested in American manufactures, as reported by the census of 1905, $12,686,265,673, with the par value of outstanding railroad bonds and stocks, reported by the Interstate Commerce Commission as $17,487,868,935 in 1909. Industrial Combinations.-The dif Capital Invested.-Another diffi- ficulty of ascertaining actual capitalculty is the impossibility of deter-ization has been further complicated mining with accuracy the amount of by the tendency of American manucapital invested in manufacturing en- facturers to organize industrial comterprises. Many of these enterprises binations by the consolidation, in the are not corporations, and have no most important industries, of many capital stock. The amount of bonds individual plants under single organand stocks issued by manufacturing izations, and under conditions which corporations does not indicate the vary greatly. In the development of actual investment of capital, being this form of business, many plants in many instances far in excess of have been acquired only to be closed that investment, or a capitalization or dismantled, in order to withdraw based upon potential earnings rather their competition. This tendency to than investment. This investment consolidation is not peculiar to the may consist of mill property, of a manufacturing enterprise of the value dependent largely upon the United States. It has progressed bakery establishments has been organized under a Delaware charter, capitalized at $30,000,000, under the name Federal Biscuit Company, absorbing some seventy-five large baking establishments east of the Rocky Mountains, and many of the independent establishments in the Borough of Manhattan. Another notable combination is the General Motors Company, with a capital of $60,000,000, and including about thirty-five plants for the manufacture of machines and parts. Another projected combination, closely akin to manufacturing, aims to revolutionize the marketing of raw cotton in this country, by establishing warehouses in all cotton producing sections as well as at manufacturing centers for the storing of the crop, instead of selling it from hand to mouth, as at present. It will establish compresses and ginneries in connection with its warehouses, and by other economies claims that it will greatly reduce the costs of marketing, estimated to average at present $5 per bale. A saving of $50,000,000 a year in these costs, including freight, insurance, etc., is promised. Negotiable warehouse receipts play an important part in the scheme. The organization takes the title of the General Cotton Securities Company, and is largely financed by the Hirsch syndicate of London. steadily in England, Germany, France, | American Woolen Company, organCanada, and elsewhere; but in no ized in 1898. A new combination of other country has it reached proportions so great and significant as in the United States, and nowhere else has it influenced so large a proportion of the different industries. While there is no important industry in which it can be claimed that a single combination possesses a monopoly of production, there are a number in which the preponderance of a single combination in mills, resources and volume of output, gives it a degree of control over prices and production which affects the markets in unmistakable ways. Instances of this character are the Standard Oil Company, the American Sugar Refining Com pany, and the United States Steel Corporation. This last is believed to be the largest industrial organization in the world, and to control more than one half of the American production along the lines in which it specializes. Its plants not only include blast furnaces, rolling mills, coke mills, and other manufacturing establishments, but also iron and coal mines from which it obtains raw material, and railroads and steamships by which it is transported, together with many accessories of mercantile business. This corporation, since its organization in 1902 with a total cap italization of $304,000,000 in bonds, $550,000,000 in preferred stock, $500,000,000 in common stock, making a total authorized capitalization of $1,354,000,000, has added enormously to its manufacturing facilities, including such enterprises as the building of complete cities like that at Gary, Indiana, and another now projected in Alabama. The year 1910 has witnessed several consolidations of individual plants into single combinations. The International Cotton Mills Corporation includes twenty-two cotton mills in New England, New York, Pennsylvania and Maryland, and two in Canada, being the first large combination undertaken in this industry in the United States. A combination has been nearly perfected of a number of woolen and worsted mills in New England, New York and Pennsylvania, with a capitalization of $30,000,000, following the example of the Gross and Net Value.-Partial enumeration of manufacturing establishments takes place in Germany, France, Holland, and Belgium. In 1907 Great Britain made for the first time a Census of Production," indicating the gross value of production, the value of net output, and the number of persons employed, constituting the nearest approach to the American census of manufactures attempted elsewhere. For thirteen great groups of industries this census reveals a product valued at £1,428,874,000 which, converted into American money on a valuation of $4.86 per £, is equal to a gross valuation of $6,944,327,640. The English census attempts to secure a net valuation of manufactures, by deducting from the gross value the cost of materials and amounts paid to other firms for pur such as dressmaking, millinery, tailoring, carpentering, rural grist and saw mills, and the hand trades. The value of the total products from these omitted industries is comparatively small. chased semimanufactured materials. | borhood and household industries, This method of obtaining net value is unsatisfactory and uncertain. The gross value of United States manufactured products of 1905 was returned as $14,802,147,807, which, after deducting the cost of materials used, and of fuel, freights, etc., leaves a net value of $9,821,205,387. The value added to that of materials used in manufacturing processes was thus $6,743,399,718. This net value is exclusive of all so-called neigh-in 1900 and 1905: The United States Census divides the great industries of the country into fourteen groups, and the following table shows the principal figures for each of these groups, as returned GROUP. United States . . . . . . 1. Food and kindred products... 2. Textiles.. 3 Iron and steel and their products.... 4. Lumber and its remanufactures.. 5. Leather and its finished products.... 1905 216,262 12,686,265,673 5,470,321 8,503,949,756 14,802,147,087 1900 207,562 8,978,825,200 4,715,023 6,577,614,074 11,411,121,122 1905 45,790 1,173,151,276 354,054 2,304,416,564 2,845,234,900 1900 41,159 900,927,187 301,305 1,778,644,270 2,193,791,594 1905 17,042 1,744,169,234 1,156,305 1,246,562,061 2,147,441,418 1900 17,647 1,340,633,629 1,022,123| 894,846,961 1,628,606,214 1905 14,239 2,331,498,157 857,298 1,179,981,458 2,176,739,726 1900 13,874 1,538,459,831 737,986 993,965,831 1,806,278,241 1905 32,726 1,013,827,138 735,945 518,908,150 1,223,730,336 1900 35,181 730,067,675 672,655 481,761,505 1,009,778,057 1905 4,945 440,777,194 255,368 471,112,921 705,747,470 1900 5,313 6. Paper and printing.. 1905 30,787 1900 26,605 7. Liquors and bever-1905 68,340 139,854,147 501,266,605 ages.. 11900 382,898,381 8. Chemicals and allied 10. Metals and metal products, other than iron and steel 11. Tobacco..... 12. Vehicles for land transportation.... 13. Shipbuilding. (1905 10,775 553,846,682 285,365 598,340,758 211,706 644,367,583 922,262,456 710,525,157 331,117,681 263,713,173 334,244,377 643,924,442 267,129,730 505,094,454 37,463,179 82,769,239 1900 1,107 77,341,001 46,747 33,474,896 74,532,277 14. Miscellaneous industries. 1905 12,377 941,604,873 307,296 332,732,413 655,010,866 According to this estimate the competitive manufactures imported United States had risen from the from abroad. Undoubtedly this fie fourth rank in 1860 to the first rank titious value appears in the statis in 1894, Germany having in the mean- tics; but whether it is thirty-three while taken the second rank formerly per cent, or less or more, it is imheld by France. The value of manu- possible to say. The value of manufactured products in the United States factured products in France, Gerwas equal in that year to those of many, and other European countries both Great Britain and France com- is artificially increased to some debined, and comprised practically one gree in the same manner, but far third the total of manufacturing na- less than in this country, while the tions. Mulhall states that American value of English manufactures is manufactures had multiplied twenty- upon a strictly free-trade basis. four fold since 1840, while those of Europe had only doubled, and he attributes this much more rapid growth chiefly to the more intensive use of machinery in this country. Undoubtedly the United States manufactures have advanced even more rapidly, relatively, since 1894, than those of any European country, owing to the much more rapid increase in population and the more effective exploitation of our unsurpassed natural resources, particularly in coal, iron, copper, lead, and the great agricultural staples. Mulhall points out, however, that at least thirty-three per cent of the nominal value of American manufactures is artificial, by reason of the high protective duties imposed on MONTH. Mulhall estimated the relative value of output per employee as £107, or about $500 for Great Britain in 1904; and as £270, or about $1,300, for the United States, the latter estimate being nearly three times the English average. The census of 1900 shows an average product per wage-earner in the United States of $2,450, nearly five times Mulhall's estimate for Great Britain in 1894. The census of 1900 showed 29,073,233 persons engaged in gainful occupations, of whom 7,085,309 were assigned to manufacturing and mechanical pursuits. (See II, Statistical Tables.) Employees and Wages.-The 1905 census presents this interesting table, showing by months the fluctuations in the number of employees: years. November. 5,587,406 The total amount paid in wages to these employees was $2,009,735,799, an increase of 29.9 per cent over 1900: 86.8 per cent went to men; 12.1 per cent to women, and 1.1 per cent to children. In addition there were 519,751 salaried employees to whom were paid $574,761,231. Manufactures in the United States are as notable for their remarkable differentiation as for rapid growth. Practically everything that is manufactured elsewhere in the world is made in this country. The single staple industry in which we have thus far made no considerable progress is the linen manufacture. Cotton Manufacture.-In all other branches of the textile industry, our recent growth has exceeded that of any other country, and this is notably true of the cotton manufacture, in which we now rank second only to Great Britain, and our machinery equipment and manufactured product are equal to that of the rest of the world, England and Germany excepted. (See I, Statistical Tables.) The total number of cotton spindles in the world is 134,536.430, of which England contains 53,312,000; the continent of Europe, 34,600,000; and the United States, 28,018,305. The original seat of the American cotton manufacture was New England, and more particularly Massachusetts, but of late years the more rapid development has taken place in several Southern States: North and South Carolina, Georgia | and Alabama lead in this development in the order named. The 1909 figures for cotton spindles located in the North were 17,589,105, and in the South, 10,429,200. The actual consumption of cotton in Southern mills is now greater than in the North, owing to the fact that the Southern product is largely confined to coarse products. The nearness of the cotton mills to the supply of raw material is undoubtedly a factor in this rapid development; and the ambition prevails in that section of the country to increase the consumption of its chief product to such a point that the bulk of its great staple shall be consumed at home. wool manufacture in which progress has been most notable is that of carpets, dependent entirely upon imported raw material. Beyond question this country is the greatest producer of machine-woven carpets, a fact partially accounted for by the larger consumption among all classes of our people. Silk Manufacture.-Unaided by any natural advantage, the growth of the silk manufacture has been even more notable; depending altogether upon imported raw material, its development bears many points of resemblance to that of the cotton manufacture in Great Britain. In 1850 there were but sixty-five small establishments engaged in this industry, with the production valued at less than $2,000,000. In 1895, the latest year of available statistics, the number of establishments had increased to 624 and the value of product $133,288,072, consuming annually nearly 12,000,000 pounds of raw silk, valued at over $76,000,000. This product is believed to be at least equal in value to that of France, which has hitherto ranked as the leading silk manufacturing country. No other nation approaches these two in the quality and value of its machine manufactured silk. Paterson, N. J., is the leading center of the industry in this country; and an industrial exposition was opened there Nov. 9, 1910, to commemorate the one hundredth anniversary of the manufacture of silk by power in this country. looms in 1909; of 564 narrow looms, and of 224,124 spindles—a marked increase of equipment over the increase in 1908. The imports of raw silk in 1909 were 151,924 bales, 22,247,938 pounds, value $76,440,822, as compared with 130,748 bales, 18,937,057 pounds, valued at $67,029,800 in 1908. Wool Manufacture.-The wool manufacture has grown in the United States less strikingly than either cotton or silk, but to a degree which has The annual report of the Silk Aspractically kept pace with the grow- sociation of America shows the estabing home market. It has been ham-lishment of 5,899 additional broad pered in its development for the last forty years by high duties upon the raw material maintained through all tariff revisions, except that of 1894, in the hope that it would ultimately develop a sheep industry capable of supplying all the wool requirements of the country. This expectation is as far from realization to-day as at the beginning of the experiment, and the great proportion of the fine and cross-bred wools used in the worsted manufacture is imported, chiefly from Australia through the medium of the London auction sales. Considerable quantities of South American wool are also used. The branch of the Iron and Steel.-The iron manufacture is not only the greatest of our manufacturing industries, but has in later years increased its output more rapidly than any other country, overtaking Great Britain, which formerly held supremacy, and keeping far in advance of Germany, the third largest |