Definitions Major Group 27. Printing, publishing, and allied industries.-Includes establishments engaged in printing, publishing, and lithographing, those performing services for the printing trades and publishers regardless of whether or not they do their own printing. Group 271. Newspapers.-Establishments primarily engaged in publishing and printing newspapers, whether or not they do their own printing, and whether or not they do printing other than newspapers. Group 272. Periodicals. Establishments primarily engaged in publishing periodicals, or in preparing, publishing, and printing periodicals, whether or not they perform their own printing. Group 273. Books. Establishments primarily engaged in publishing only, or in publishing and printing books and pamphlets; and those primarily engaged in printing only, or in printing and binding books and pamphlets, but not engaged in publishing. Group 274. Miscellaneous publishing.-Establishments primarily engaged in publishing such products as maps, atlases, sheet music, and directories, or engaged in miscellaneous publishing activities, not elsewhere classified, whether or not engaged in printing. Group 275. Commercial printing.-Establishments primarily engaged in commercial or job printing, including general printing shops specializing in printing newspapers and periodicals for others, and those which specialize in gravure, rotogravure, and rotary photogravure printing. Group 276. Lithographing.-Establishments primarily engaged in preparing lithographic stones or metal lithographic plates, and in printing from such media; and those engaged in offset printing, photooffset printing, and photolithographing. The greater part of the work done in these establishments is done on a job or custom basis, but in some cases lithographed calendars, commercial forms, maps, posters, decalcomanias, etc., are made for sale. Group 277. Greeting cards.-Establishments primarily engaged in designing only, manufacturing only, or designing and manufacturing greeting cards for all occasions; such cards may be printed, lithographed, etched, or otherwise processed. Group 278. Bookbinding and related industries. For purposes of this study, this group includes only industry 2781, bookbinding, which includes establishments primarily engaged in edition, trade, job, and library bookbinding. Group 279. Service industries for the printing trade. This group includes establishments primarily engaged in typesetting, engraving and plate printing, photoengraving, electrotyping and stereotyping. Although some copyright material may be involved in the work of these establishments, it is believed to be very small in amount, and the whole group has been excluded for purposes of this study. These definitions are paraphrased, for purposes of condensation, from the "SIC Manual," vol. I, pt. 1, pp. 30-32. Of statistical necessity, this entire group of copyright industries has been estimated in a group manner. National income estimates of the Office of Business Economics include an estimate for major group 27 only: There is no breakdown into the component industries. However, data from the 1954 Census of Manufacturers make a breakdown possible. The 1954 Census of Manufacturers collected data on the "value added by manufacture" for major group 27 and for each of its component industries. From this, the percentage of the total "value added" created by each component group was calculated. Then the total "national income originated" by major group 27, from the Office of Business Economics, was broken down in the same proportions. As a final step, various portions of the component groups were excluded, as being noncopyright in nature. The summary of these calculations is shown on the accompanying table III, column VI of that table showing the final results of the calculations, as set forth above. This method assumes that the "national income originated" by each segment of major group 27 is proportionate to the value added by manufacture" by that same segment. In group 27 as a whole the "value added by manufacture" is about one-third larger than the "national income originated", indicating the more "net" concept of the latter. Each of the three-digit groups is considered to be entirely of a copyright nature except commercial printing (275) and lithographing (276) which are considered to be one-fifth copyright; bookbinding and related industries (278) which is considered to be onehalf copyright; and service industries for the printing trade (279) which is considered to be outside of the copyright concept and is excluded. In the cases of the commercial printing and lithographing (275 and 276) the judgments as to the portion which is of a copyright nature are arbitrary. In the case of bookbinding and related industries (278) only bookbinding (2781) as such is included as being of a copyright nature; in the year 1954 bookbinding (2781) as such originated about 43 percent of the "value added by manufacture" by the entire group 278, and this ratio will be used. From the description of service industries for the printing trades, it is considered that the entire group should be excluded as being too far removed from dependence on copyright. Department of Commerce, Bureau of the Census, "1954 Census of Manufactures," Bulletin MC-27B, p. 4. "SIC Manual," vol. I, pt. 1, pp. 31-32. 4647960 TABLE III.-Estimated national income originated by printing, publishing, and allied industries, 1954 (SIC group 27 and component groups) Cols. I and II: "SIC Manual," vol. I, pt. 1, pp. 30-32. Col. IV: Percentage breakdown of col. III. Col. V: The total for SIC Code 27-$4,532 million-is broken down according to the percentages shown in col. IV. This total is taken from Department of Commerce, Office of Business Economics, Survey of Current Business, July 1956, p. 16, table 13. Col. VI: 20 percent of SIC Code 275; 20 percent of SIC Code 276; 43 percent of SIC Code 278; none of SIC Code 279; and 100 percent of all other items as shown in col. V are considered in col. VI to be "copyright national income originated." SIC INDUSTRY 3663. PHONOGRAPH RECORDS Estimated 1954 national income originated, $64 million This group includes establishments primarily engaged in manufacturing phonograph records and record blanks." In the electrical machinery industry (SIC Code 36) which includes the manufacture of phonograph records, the ratio between compensation of employees and national income originated was 81 percent in 1954.8 The payroll of the phonograph record industry in 1954 was $23.3 million. However, this does not include the compensation of recording artists, composers, lyricists, etc. 10 Trade information indicates that the compensation of this group is about one-third of the other costs of the industry, which reach about $84.7 million." Hence, the artists' compensation is one-third of $84.7 million or $28.2 million. Adding $28.2 million to the nonartists' compensation of $23.3 million gives $51.5 million as the total compensation paid out by the industry. If the ratio of compensation of employees and national income originated in the phonograph record industry is the same as that ratio for the entire electrical machinery industry than the national income originated by the phonograph record industry may be calculated by dividing $51.5 million by 81 percent, as calculated above. This calculation gives $63.6 million of national income originated by the phonograph record industry which is rounded to $64 million for purposes of this study. 7 "SIC Manual," vol. I, pt. 1, p. 64. Department of Commerce, Bureau of the Census, Census of Business, "Survey of Current Business," July 1956, p. 16. Bureau of the Census, "1954 Census of Manufacture," Bulletin MC-36C, p. 3. 10 Ibid., p. 2. 11 Ibid., p. 6. METHODOLOGICAL NOTE CONCERNING ESTIMATES OF NATIONAL INCOME ORIGINATED BY BOOKSTORES, NEWSDEALERS AND NEWSSTANDS, AND THE MUSIC STORES For these three types of retail establishments a uniform method of estimation is used. The "payroll for the entire year" is increased by an estimated amount representing the imputed wages of nonpayroll establishments; this estimate is based on the relative volume of sales by payroll and nonpayroll establishments. The increased estimate of "payroll for the entire year" may be called the "total compensation of employees." For the entire SIC Code "retail trade and automotive services" the total compensation of employees was 66 percent of the national income originated, for the year 1954.12 On the assumption that the same relationship exists between the total compensation of employees and the national income originated in each of the three retail groups considered here, an estimate of the "total compensation of employees" may be expanded by this factor to obtain an estimate of the national income originated by each retail group. Finally, such parts of each retail group as are considered to be noncopyright in nature are arbitrarily excluded from the estimate. SIC INDUSTRY 5942. BOOKSTORES Estimated 1954 national income originated, $32 million For method of estimation, see "methodological note" above. This group includes bookstores primarily engaged in selling, at retail, new books and magazines. Book clubs and mail-order houses primarily engaged in selling books are also included.13 1. Payroll for entire year: $19 million.11 2. Imputed wages of nonpayroll establishments: $2 million. 3. Total compensation of employees: $21 million. = 4. 100/66×$21 million $32 million estimated national income originated by bookstores. SIC INDUSTRY 5994. NEWSDEALERS AND NEWSSTANDS Estimated 1954 national income originated, $36 million This group includes dealers primarily engaged in selling, at retail, newspapers, magazines, and other periodicals.15 For method of estimation, see "methodological note" above. 1. Payroll for entire year: $18 million.16 2. Imputed wages of nonpayroll establishments: $6 million. 3. Total compensation of employees: $24 million. = 4. 100/66 × $24 million $36 million national income originated by newsdealers and newsstands. 2 Department of Commerce, Office of Business Economics, "Survey of Current Business," July 1956, p. 16, tables 13 and 14. SIC Manual." vol. II, p. 83. Bureau of the Census, "1954 Census of Business," Bulletin R-1-1, pp. 1-6. 15 "SIC Manual," vol. II, p. 84. 18 Bureau of the Census, "1954 Census of Business," Bulletin R-1-1, pp. 1-6. SIC INDUSTRY 5995. MUSIC STORES. Estimated 1954 national income originated, $22 million For method of estimation, see methodological note on page 39, supra. This industry includes stores primarily engaged in selling, at retail, musical instruments, such as pianos, violins, horns, reed instruments, drums, sheet music, and phonograph records.1 1. Payroll for entire year: $52 million.18 2. Imputed wages of nonpayroll establishments: $5 million. 3. Total compensation of employees: $57 million. 4. 100/66×$57 million $86 million national income originated by music stores. 5. It is considered that only the sales of phonograph records and music publications by music stores should be included as part of the copyright industries. The 1954 sales of phonograph records by producers is reported to be $80 million.19 In order to estimate the retail sales value of phonograph records, the trade considers that the producer usually receives about 48 percent of the list price.20 However, in the hands of retailers a portion of sales of phonograph records is made at less than list prices; and also a portion is sold through outlets other than music stores. Therefore it is arbitrarily estimated that the producers' receipts are 70 percent rather than 48 percent of actual retail sales; and that 65 percent of the total phonograph record sales at retail are handled by retail music stores. With these figures in mind the total dollar volume of retail sales of phonograph records by retail music stores in 1954 was: $80 million × 100/70 × 65 percent=$74 million. It is also estimated that the total retail sales of music publications by retail stores is $22 million annually.21 Thus the total estimated retail sales by retail music stores of phonograph records and music publications is the sum of $74 million and $22 million, or $96 million. The total retail sales by music stores during 1954 are reported to have been $375 million; 22 therefore the retail sales of copyright industry items, amounting to $96 million is approximately 26 percent of the total. 6. It is estimated in step 4 above that the total national income originated by retail music stores is $86 million. Twenty-six percent of $86 million is equal to $22 million which is the estimated national income originated by retail music stores in their sales of phonograph records and music publications. SIC INDUSTRY 7232. COMMERCIAL PHOTOGRAPHY Estimated 1954 national income originated, $74 million 23 This industry includes establishments primarily engaged in photography for advertising agencies, publishers, and other industrial Little information is available concerning this industry as such, and 17 "SIC Manual," vol. II, p. 84. 18 Bureau of the Census, "1954 Census of Business," Bulletin R-1-1, pp. 1-6. 19 Department of Commerce, Bureau of the Census, Bulletin MC-36C, p. 14. 20 Calculated by Billboard, March 10, 1956. users.2 21 Hearings before the House Committee on Post Office and Civil Service, 84th Cong. 1st sess., on H.R. 5139 and H.R. 5142, July 13, 1955, p. 44. 22 Department of Commerce, Bureau of the Census, "1954 Census of Business," Bulletin R-1-1, p. 6. 23 "SIC Manual," vol. II, p. 108. |