it will be necessary to work from the data for Code 72, "Personal Services," and Code 723, "Photographic Studios," including commercial photography. In 1954, the ratio of total annual compensation to national income originated in SIC Code 72, "Personal Services," is 66 percent.24 In 1954, the total compensation for SIC Code 723, commercial photography, is reported at $81 million.25 It is estimated that the commercial photographic establishments without payroll paid imputed wages in the amount of $17 million in the same year based on the relationship between total sales of establishments paying wages and total sales of establishments without payroll. 26 Thus, the total wages paid and imputed in the commercial photography industry in 1954 are estimated to be $98 million. If national income originated in the commercial photographic industry relates to total employee compensation the same as in SIC Code 72, "Personal Services," then the national income originated by the commercial photographic industry would be: $98 million X 100/66 or $148 million. However, it is arbitrarily estimated that only one-half of national income originated by the commercial photographic industry may be related to copyright. Therefore, the estimate of $148 million is reduced to $74 million as the estimate of the national income originated in 1954 by commercial photography, for purposes of this study. METHODOLOGICAL NOTE RE ESTIMATES FOR ADVERTISING AND NEWS SYNDICATES The same general method is applied to theaters and theatrical producers, except motion pictures; and bands, orchestras, and entertainers. In the case of these industries, it is believed that the wage figure of the Bureau of Employment Security, Department of Labor, is the most appropriate starting point. It appears that the Bureau of the Census, Department of Commerce, in the "1954 Census of Business" did not require reporting news syndicates to include figures for their field establishments. Since news syndicates are largely made up of field offices, it would be expected that the "1954 Census of Business" figures for wages would be relatively small. In fact, the payroll for the entire year is given as $20.1 million. On the other hand, the Bureau of Employment Security does include field offices of news syndicates in its figures; for 1954, the figure for annual wages is $41.9 million.28 27 In the advertising industry, a similar but less striking situation exists. The 1954 Census of Manufactures figures for payroll is $402.1 million.29 The Bureau of Employment Security gives a figure of $470.2 million for total annual wages in 1954.30 "Department of Commerce, Office of Business Economics, Survey of Current Business, July 1956, p. 16, tables 13 and 14. Department of Commerce, Bureau of the Census, "1954 Census of Business," Bulletin S-1-1, p. 4. 2 Ibid. Department of Commerce, Bureau of the Census, "1954 Census of Business," Bulletin 8-1-1, pp. 1-4. 23 Department of Labor, Bureau of Employment Security, "1954 Average Employment and Total Wages," p. 24. Department of Commerce, Bureau of the Census, "1954 Census of Business," Bulletin S-1-1. pp. 1-4. Department of Labor, Bureau of Employment Security, "1954 Average Employment and Total Wages," p. 24. Starting with the Bureau of Employment Security figure for wages in each of these industries, the following steps will lead to the estimate of national income originated: (a) The wage figure will be expanded to represent total compen sation. (b) The ratio between national income originated and total compensation will be calculated, for the entire classification of "Business Services, n.e.c." (c) On the assumption that the ratio calculated in step (b) above exists in every part of the total classification, that ratio will be applied to the "total compensation" in the individual industry. SIC GROUP 731. ADVERTISING Estimated 1954 national income originated, $716 million For method of estimation, see methodological note on page 41, supra. This group includes (a) 7,311 advertising agencies: Establishments primarily engaged in contracting for space in magazines, newspapers, periodicals, for radio time, or other advertising media, and placing advertising for clients on a commission or fee basis; (b) 7,312 outdoor advertising services: Establishments primarily engaged in the preparation and presentation of poster displays and painted and electric spectacular displays on panels, bulletins, and frames, principally outdoors (such establishments may construct, repair, and maintain display boards and may post advertisements); (c) 7,319 miscellaneous advertising: Establishments primarily furnishing advertising services not elsewhere classified, such as handbill distribution, mail advertising services, and the distribution of samples.31 (a) Total annual wages are $470 million.32 (b) Total compensation is 105 percent of total annual wages, for the entire classification of business services, n.e.c., calculated as follows: Wages and salaries, business services, n.e.c., total $2,009 million. Total compensation, same classification, total $2,111 million. Total compensation is 105 percent of wages and salaries; 105 percent of $470 million is $494 million, total compensation. (c) National income originated is 145 percent of total compensation, for the entire classification of business services, n.e.c., calculated as follows: National income originated by business services, n.e.c., totals $3,057 million. Total compensation, same classification, totals $2,111 million. tion. 145 percent of $494 million is $716 million. National income originated by the advertising industry in 1954 is estimated to be $716 million. 31 "SIC Manual," vol. II, pp. 109-10. 32 Department of Labor, Bureau of Employment Security, "1954 Average Employment and Total Wages," p. 24. Figures for total compensation, wages and salaries, and national income originated, used in steps (b) and (c) are taken from Department of Commerce, Office of Business Economics, "Survey of Current Business," July 1956, p. 16. SIC GROUP 735, NEWS SYNDICATES Estimated 1954 national income originated, $64 million This industry includes central offices and district and local branch offices of news syndicates furnishing news, features, etc., and supplying news reporting services.33 For method of estimation, see methodological note on page 41, supra. (a) Total annual wages are $42 million.34 (b) Ratio of 105 percent is established as in step (b), p. 42, supra. 105 percent of $42 million is $44 million, total compensation. (c) Ratio of 145 percent is established as in step (c), p. 42, supra. 145 percent of $44 million is $64 million. National income originated by the news syndicate industry in 1954 is estimated to be $64 million. SIC MAJOR GROUP 77. RADIO BROADCASTING AND TELEVISION Estimated 1954 national income originated: $533 million This major group includes radio and television stations primarily engaged in activities involving the dissemination of radio communications, either aural or visual, intended to be received by the public through receiving sets, and networks primarily engaged in activities involving the transmission of program material by wire or radio to stations serving as network outlets. Radio stations and networks engaged in the sale of time for broadcast purposes, and the furnishing of program material or service are also included.35 This is one of two estimates in this study which have been accepted directly from published sources without change or adjustment. The estimate is $533 million.36 SIC MAJOR GROUP 78. MOTION PICTURES Estimated 1954 national income originated, $917 million This major group includes establishments producing and distributing motion picture films, exhibiting motion pictures in commercially operated theaters, and furnishing services to the motion picture industry.37 This is one of two estimates which have been accepted directly from published sources without change or adjustment. The estimate is $917 million.38 "SIC Manual," vol. II. p. 110. Department of Labor, Bureau of Employment Security, "Average Employment and Total Wages 1954," p. 24. "SIC Manual," vol. II, p. 115. "Survey of Current Business," July 1957, p. 16, table 13. "SIC Manual," vol. II, p. 116. "Survey of Current Business," July 1957, p. 16, table 13. SIC GROUP 792. THEATERS AND THEATRICAL PRODUCERS, EXCEPT MOTION PICTURES Estimated 1954 national income originated, $109 million For method of estimation, see methodological note on page 41, supra. This group includes theaters primarily engaged in presenting legitimate productions, opera companies, concert organizations, road companies, and stock companies; also services connected with theatrical production, such as theatrical and radio employment agencies, booking agencies, scenery and other theatrical equipment and ticket agencies.3 (a) Payroll for the theater industry for the entire year is reported to be $80.4 million." For the entire classification of amusement and recreation (except motion pictures), the total compensation was 103 percent of wages and salaries. One hundred and three percent of $80.4 million is $83 million, or total compensation. (b) For the entire classification of amusements and recreation (except motion pictures), the national income originated was 131 percent of total compensation. (c) One hundred and thirty-one percent of $83 million is $109 million. National income originated by the theater industry in 1954 is estimated to be $109 million. SIC GROUP 795. BANDS, ORCHESTRAS, AND ENTERTAINERS Estimated 1954 national income originated, $58 million For method of estimation, see "Methodological note" on page 41, supra. This group includes dance bands, orchestras, and entertainers for restaurants, night clubs, radio and television programs, and similar organizations operating on a contract or fee basis.11 (a) Payroll for bands, etc., for the entire year is reported to be $40 million. 42 For the entire classification of amusement and recreation (except motion pictures), the total compensation was 103 percent of wages and salaries; 103 percent of $40 million is $41 million. (b) For the entire classification of amusements and recreation (except motion pictures), the national income originated was 131 percent of total compensation; (c) One hundred and thirty-one percent of $41 million is $58 million. National income originated by the bands, etc., industry in 1954 is estimated to be $58 million. 39 "SIC Manual." vol. II, p. 117. 40 Department of Commerce, Bureau of the Census, "1954 Census of Business." Bulletin S-1-1. p. 105. Figures for total compensation, wages, and salaries, and national income originated, used in steps (b) and (c), are calculated from Department of Commerce, Office of Business Economics, "Survey of Current Business," July 1956, p. 16. 41 "SIC Manual," vol. II. p. 118. 42 Department of Commerce, Bureau of the Census. "1954 Census of Business," bulletin S-1-1. p. 1-5. Figures for total compensation, wages and salaries, and national income originated used in steps (b) and (c), are calculated from Department of Commerce, Office of Business Economics, "Survey of Current Business," July 1957, p. 16. SIC INDUSTRY 7999. AMUSEMENT AND RECREATION SERVICES, N.E.C. (OPERATION OF AUTOMATIC COIN-OPERATED PHONOGRAPHS) Estimated 1954 national income originated, $242 million This industry includes amusement and recreation services not elsewhere classified, such as amusement parks, exhibitions, carnivals, circuses, amusement concessions, shooting gallaries, and coin-operated amusement parlors. Only a portion of this category is of interest in this study. 43 None of the official sources of data include figures for the fourdigit category 7999. Therefore, it is necessary to fall back upon data from other sources. The jukebox operating industry The jukebox (coin-operated phonograph) operating industry is made up of about 8,000 small-to-large operators, both individuals and firms, who own the boxes (frequently with a purchase-money mortgage against them), place them "on location" in restaurants, bars, taverns, etc. (frequently without any written contract with the owner of the "location"); the operators maintain the machines, furnish the records, and split the gross "take" with the "location owner" (on the average, this split is on a 50-50 basis). No informational reports are released regularly by any national jukebox operators' trade association. The number of jukeboxes in operation 44 There seems to be little controversy about the fact that there are about a half-million coin-operated phonographs in operation in the United States. The representative of the Music Operators of America, Inc. (jukebox operators) used the figure "450,000 to 500,000 jukeboxes throughout the United States" in the 1953 hearings on S. 1106.45 For purposes of this study, the figure of 475,000 will be used. Gross "take" per machine. This figure is subject to considerable controversy. In 1951, the accounting firm of Price, Waterhouse & Co., was retained by the Chicago law firm of Kirkland, Fleming, Green, Martin & Ellis, representing certain manufacturers of coin-operated phonographs and other types of coin-operated machines, to make a survey of the jukebox operating industry. A short, simple questionnaire was sent to every known operator, who was requested to return one copy directly to the accounting firm. The replies from 1,598 operators were used in the final tabulations. 46 From this survey it was ascertained that the gross "take" per machine in 1950 was "about $644, of which the owner operator collected $322.47 For the same year, "The Billboard," trade magazine covering the jukebox industry, reported from its annual poll of the industry that the gross weekly "take" per machine was $18.40 or $957 per year, of which the operator retained $478.48 For the year 1954, "Billboard" reported a presumably comparable figure of $20.50 per week per ma 43 "SIC Manual," vol. II, p. 118. The Bureau of the Census considers that the larger part of the jukebox operators appear in this category, but that some of them may appear in SIC Industry 7399-"Coin-Operated Machine Rental and Repair Services." Summarized from the hearings on H.R. 5473 (1952) and S. 1106 (1953), passim. 45 At p. 93. Hearings on H.R. 5473 (1953), pp. 134 ff., passim. "Ibid., p. 136. The Billboard, Mar. 17, 1951, p. 87. Based on 320 usable replies from a total of 2,712 questionnaires sent out. |