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industries. Thus, the establishments classified in an steam railroad cars" and in those for "Locomotives industry do not, as a rule, manufacture the total built,” respectively. output of the primary products normally belonging to 10. The questionnaires.- In preparation for the 1939 the industry, as in many cases some of these are made census, the questionnaires were revised, as for previous as secondary products by establishments in other censuses, to incorporate practical recommendations industries.

made by manufacturers and other interested persons The treatment of each establishment as a unit and and to harmonize them so far as possible with questionits assignment to some one industry sometimes results naires used in making certain monthly and quarterly in overrating the importance of certain industries and

canvasses. The principal change in the standard underrating that of others, because of the fact that inquiries was in that relating to personnel, which was where primary products of an industry are made in expanded to provide a break-down by sex and separate considerable quantities as secondary products in other data for the employees of manufacturing plants who industries, the statistics for the industry in which they were engaged in distribution, construction, and other are primary products do not include data for person- nonmanufacturing activities.

nonmanufacturing activities. A new inquiry, covering nel, wages, cost of materials, etc., that are factors in capital expenditures for plant and equipment in 1939, , the secondary production of these commodities in the was added to the questionnaire. other industries. In the case of every industry, the 11. Persons engaged-general classification.- In the value of the secondary products not normally belong- 1939 census each manufacturer was asked to report the ing to it, and that of commodities normally belonging total number of employees receiving pay at any time to it but made as secondary products by establishments within the normal pay-roll period ended nearest October engaged primarily in other lines of manufacture, offset 14, 1939, whereas in earlier censuses the pay-roll figures one another to a greater or to a lesser extent; and in represented, in general, only employees engaged, directly most cases the total value of products reported for an or indirectly, in the manufacturing activities of the industry does not differ greatly from the value of the establishment. The employees reported for 1939 were total output, in all industries, of the classes of products classified, by sex, as salaried officers of corporations, covered by the industry designation.

manufacturing employees, distribution employees, con9. Changes in the scope of the Census of Manufac- struction employees, and all other employees. Thus tures between 1929 and 1939.-It should be noted that salaried officers of corporations were not allocated to any seven industries, namely, “Car and general construc- one of these four employment groups. Manufacturing tion and repairs, electric-railroad repair shops," "Car employees were further classified, by sex, as (1) manand general construction and repairs, steam-railroad agers, superintendents, and other supervisory emrepair shops," "Coffee and spice, roasting and grind- ployees, and responsible professional and technical ing," "Flax and hemp, dressed," "Gas, manufactured, employees; (2) clerks, stenographers, and other clerical illuminating and beating," "Motion pictures, not in- employees; and (3) wage earners. cluding projection in theaters," and "Peanuts, walnuts, The comparability of the salaried-personnel figures and other nuts, processed or shelled," which were in- for 1939 with those for earlier years is affected to an cluded in the Census of Manufactures for 1929 have indeterminable extent by several factors. The 1937 since been omitted. The motion-picture industry, how- questionnaire called for data on "Salaried officers of the ever, has been canvassed separately since 1929 but the corporation whose duties are concerned wholly or data have not been included in the totals for manu-chiefly with manufacturing,” whereas for 1939 and fucturing industries. The "Flax and hemp, dressed” for other census years the item simply read "Salaried industry was abandoned as a manufacturing industry officers of the corporation.” Furthermore, some manuafter the 1929 census. Data for "Coffee and spice, facturers undoubtedly included data for the personnel roasting and grinding" and for "Peanuts, walnuts, and of their central-administrative offices in the figures other nuts, processed or shelled" were not collected given in individual plant reports, although such cenafter the 1931 census. The industries "Gas, manufac- tral-office personnel was not to be reported except for tured" and "Railroad repair shops" (both electric and those census years for which a special administrativesteam) were not covered by the Census of Manufac- office questionnaire was used for reporting them. A tures after 1935. The manufactured-gas industry was third factor affecting the comparability of the figures dropped because it was not practicable to obtain fig- is the specific segregation, for 1939, of nonmanufacturures that did not include data for the distribution and ing employees. At earlier censuses manufacturers were the mixing of gas. Railroad repair shops were omitted instructed to report their personnel employed in because they are no longer classified as manufacturing production activities and in the power plant and such establishments. However, the number and value of auxiliary activities as maintenance, shipping, warenew cars and of locomotives built in these shops are housing, etc., at the same location. For the food, included in the production figures for "Electric and apparel, and printing and publishing industries, where distribution constitutes an important part of the à plant was in operation during only a part of the activities of the establishments, the 1939 figures for month, the number of wage earners reported for the salaried personnel engaged primarily in connection with week selected would almost certainly be above the manufacturing indicate marked decreases as compared average for the month.

average for the month. The quotient obtained by diwith the corresponding figures for earlier years, these viding the amount of wages (the total amount paid to decreases not being in harmony with changes in numbers wage earners during the year) by the average number of wage earners. It must be assumed that some of the of wage earners cannot, therefore, be accepted as reppersonnel reported for earlier years as engaged in pro- resenting the average wage received by full-time wage duction activities or in activities connected with pro- earners. In making comparisons between the figures duction were reported for 1939 as distribution or other for 1939 and those for earlier years, the likelihood that nonmanufacturing employees. It is not known to what the proportion of part-time employment varied from extent this factor affects the comparability of the year to year should be taken into account. figures.

13. Cost of materials, etc.---The questionnaire called 12. Wage earners and wages.-Wage earners in for data on the cost of materials, supplies, and conmanufacturing plants are, generally speaking, those tainers for products, the cost of fuel, and the cost of who perform manual work, using tools, operating purchased electric energy "actually used during the machines, handling materials and products, and caring year.” Consequently the figures for the cost of matefor the plant and its equipment. They comprise both rials, etc., and of fuel represent the actual consumption time and piece workers. Working foremen and "gang of these items in the production of the commodities reand straw bosses” are treated as wage earners, but fore- ported as the year's output, not the purchases that men whose duties are primarily supervisory are classified may have been made within the year. The cost of as salaried employees.

materials does not include the cost of parts and replaceThe 1939 questionnaire called for the number of wage ments for machinery and equipment used in the plant, earners engaged in manufacturing receiving pay at any

nor that of construction materials, etc., charged to captime within the normal pay-roll period ended nearest ital accounts. In the cases of some industries it repOctober 14, 1939, by sex, and also asked for the number resents chiefly raw materials, such as crude rubber; in receiving pay at any time within the normal pay-roll others it is the cost of semimanufactured materials, period ended nearest the fifteenth of each month. Thus, such as tanned leather or, for an assembly plant, motoralthough the 1939 questionnaire provided for reporting vehicle parts. Furthermore, certain commodities, such all employees of manufacturing establishments, it did as textiles, flour, and wire, which in some cases are sold not provide for reporting separately the wage earners to individual consumers as finished products, in other engaged in distribution, construction, and other non- cases are used as materials for further manufacture. manufacturing work.

The cost of fuel does not cover that used as material The averages for the year for industries and for in manufacturing processes-for example, coal in the States have been calculated by dividing the sums of the production of coke---which is included with other figures for the several months by 12. The averages for materials. industry groups and for geographic divisions have 14. Contract work.—The term "contract work"usually been calculated by the same method, but in which does not imply the existence of a formal consome cases these are simply the totals of the averages tract-is applied to work done outside the establishfor the individual industries or for the States. For this ment reporting, on materials supplied by it, for the reason, slight differences will be found in comparing the production of some or all of the commodities reported averages for industries and groups and those for divi- as the products of the establishment. It may be done sions in different tables, but these differences are in no by another manufacturing establishment or by persons case of any statistical importance. The wage-earner working in their homes. Payments made for such averages in tables showing industry figures by States do work appear in the census reports as “Cost of contract not always add to the State totals, and the calculated work”; receipts for such work done for others are averages do not, of course, add exactly to the United included in the total value of products. States totals in all cases.

The largest amount of contract work is reported by The average for the year exceeds somewhat the num- the clothing industries, and the printing and publishing ber that would have been required for the work per- industries rank second in this respect. In many formed if all had been continuously employed through industries, however, contract work is so small in amount the year, because of the fact that it is impracticable to as to be negligible, sometimes being merely incidental take into account the extent to which some or all of and not a normal or a necessary part of the industry's the wage earners may have been on part-time or for activities. some other reason may not actually have worked on The cost of contract work is subtracted, together a full-time basis during the entire week covered by the with the cost of materials, fuels, etc., from the value of entry for a given month. Moreover, in cases in which products in computing the value added by manufacture.

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15. Value of products. The amounts under this 17. Value added by manufacture.The value of beading are the selling values, at the factory or plant, products is not a satisfactory measure of the imporof all commodities produced (or, for some industries, tance of a given industry, because only a part of this receipts for work done) during the census year, whether value is actually created within the industry, another, sold, transferred to other plants (interplant transfers), and sometimes much larger, part being contributed by or in stock, and consequently, under normal conditions, the materials used. For some purposes the most satisthe total value of products covers the cost of production factory measure is the" value added by manufacture"(including overhead expenses) and profits. It also that is, the increase in the total value of commodities covers selling expenses except in cases where separate in existence as represented by the difference between sales departments are operated, in which cases the the cost of the materials, etc., consumed and the value values at which the products are turned over to sales of the products made from them. It is calculated by departments are reported.

subtracting the cost of materials, supplies, containers, The value of products is not a satisfactory measure fuel, purchased electric energy, and contract work from of the importance of a given industry because only a the value of products. part of this value is actually created within the indus- This net addition to the value of commodities is try. Another part, and often a much larger one, is almost free from the duplication that is a factor in the contributed by the value of the materials used. The total value of products. It does, however, include a aggregates for cost of materials and value of products small amount of duplication due to the fact that cerinclude large amounts of duplication due to the use of tain establishments perform contract work on materials the products of some industries as materials by others. owned by other establishments either in the same or in (See sec. 16, "Duplication in cost of materials and

affiliated industries. Such establishments report the value of products.”') In the case of establishments amount received for contract work in lieu of value of performing work under contract (see sec. 14, "Contract products, and where they are classified in the same inwork,” above), the amounts received for such work dustry as the establishments that produce the finished are reported in lieu of value of products.

commodities, this results in duplication in the total Some manufacturers sell their products at prices value of products and therefore in the total value added which include freight and other delivery charges, but by manufacture. The amount of this duplication in these transportation charges are deducted whenever the value added is insignificant except in a few induspossible,

tries, particularly the manufacture of clothing. Some establishments manufacture little or nothing In comparing manufacturing industries with one for sale, but make partly finished products or containers another, the relation between the value of finished and auxiliary articles for the use of other manufacturing products and the cost of materials should be kept conestablishments under the same ownership. For ex- stantly in mind. The products of one industry may ample, a blast furnace produces pig iron, which is used be valued at the same amount as those of another, but in the production of steel in plants under the same in one case, in which low-cost materials are used and ownership. In such cases the transfer value" assigned much labor is expended on them, several times as much

“” by the manufacturer is accepted as the value of the value may be added to the materials as in the other pig iron. This transfer value is usually based on industry, where the materials are expensive and only a market prices or on the cost of manufacture, but some- small amount of labor is required to process them. It times it is purely arbitrary.

is obvious that the industry that adds the greater 16. Duplication in cost of materials and value of amount of value is of the greater economic imporproducts.-In making use of the statistics for cost of

tance. materials and value of products for groups of industries For 1937, the value added by manufacture was calor for all industries taken as an aggregate, it must be culated in the same manner as for 1939. For 1935, remembered that they include a large amount of however, the cost of contract work was included in the duplication due to the use of the products of some subtracted figure for only those industries (or groups of establishments as materials by others. This duplica- closely related industries in the Textiles and Printing tion occurs, as a rule, between different industries and and Publishing fields) in which it represented 10 peris not found to any great extent in individual industries. cent or more of the total for materials, fuel, etc., and for A most outstanding exception, however, is found in earlier years the cost of contract work was not subthe "Motor vehicles, motor-vehicle bodies, parts and tracted from the value of products in computing the accessories" industry, in which there is a large amount value added by manufacture for any industry. of duplication. The net value of all manufactured 18. Profits and production costs.-Profits cannot be products, exclusive of such duplication, is estimated calculated from the census statistics, for the reason that to have been approximately two-thirds of the gross these statistics do not show total production costs, no value for 1929. No corresponding estimate has been data in regard to depreciation, interest, insurance, rent, made for subsequent years.

taxes (except internal-revenue taxes for certain indus

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tries), and other miscellaneous expense items having tures were divided into three groups, namely, (1) those been collected.

for new construction and major alterations of buildings 19. Price changes.-In comparing the figures for cost and other fixed plants and structures, (2) those for new of materials, value of products, and value added by machinery and operating equipment, and (3) those for manufacture for different census years, price changes plant and equipment acquired in a "used" condition should be taken into account. To the extent to which from other owners, and expenditures for land. Some this factor was influential, the figures fail to afford true manufacturers failed to distribute their total expendiindexes of the actual increase or decrease in manufac- tures under this inquiry between (1), (2), and (3), and turing activities.

consequently the figures given in this report for total 20. Inventory.-For 1939, as for 1937, the values of expenditures for plant and equipment are more nearly inventories at the beginning and at the end of the year complete than are those for the three items under this were called for under two heads, namely, (a) finished total. The statistics are presented in such form as to products (including goods produced by outside contract- show the relative number and size of manufacturing work from materials supplied by the establishment re- establishments that were increasing their investments porting) and (b) materials, supplies, fuel, work in in plants and equipment in 1939. The figures relate process, and all other inventories. For the larger es- only to plants that were in operation in 1939, and do tablishments, particularly, separate figures for these not cover idle plants and plants under construction two classes of inventories were obtained whenever pos- that were not put into operation within that year. sible. If no separation could be made, however, the They do not, of course, include data for expenditures total value of all inventories was tabulated either as made by the owners of plants and equipment leased finished-products inventory or as materials, supplies, from others by the manufacturers reporting. etc., inventory, according to how inventories in the 22. Power equipment.-In the 1939 census, as in particular industry were generally reported. Since a those for 1935 and 1929, data on the power equipment number of manufacturers failed to give the separate of manufacturing plants were collected. (Because of inventory figures, the totals for all inventories are more the incompleteness of the data for 1935, no statistics nearly complete than are the figures for the two separate on power equipment were published for that year.) groups of inventory items.

The inquiry for 1939 was more detailed than that for It should be noted that only those inventories held 1929 in that for the current census prime movers were at manufacturing plants are reported for the Census of classified not only as to type but also as to whether Manufactures. Inventories owned by manufacturing they were used for driving generators. This expansion concerns but held in warehouses separate from the of the inquiry permits a direct comparison between the manufacturing plants are not included. The tobacco horsepower capacity of prime movers driving generators industries offer a good example of industries where and the kilowatt capacity of the generators driven by large inventories are held in warehouses not connected them. In order to be able to present information on with any individual manufacturing plant.

the capacity of power equipment not ordinarily in use, Data on inventories were not collected for any of the data on the total horsepower rating of idle prime movers industries in the Printing, Publishing, and Allied and on the kilowatt rating of idle generators were Industries group, nor were inventory data tabulated collected. for contract shops in the textile industries. The value Some manufacturers operating two or more plants of the products of those industries for which inventory reported their entire power-plant equipment, including data were not collected or tabulated was not considered motors installed in their several plants, on a "master in determining the proportion of the total value of schedule.” In these cases the data were not apportionproducts represented by establishments for which satis- ed to the individual plant reports, but were assigned factory inventory data were reported. Establishments as a whole to the industry in which the major part of whose values of products amounted to 96.5 percent of the manufacturer's business was classified. the total value of products reported in the 1939 census The figures for the horsepower rating of motors either supplied inventory figures or stated that they driven by purchased energy have not been added to the had no stocks on hand.

total for the horsepower of prime movers, as was done 21. Expenditures for plant and equipment.-For in the 1929 census, to obtain an aggregate figure for 1939, for the first time in any census of manufactures, horsepower. data were collected on capital expenditures for plant 23. Fuel and electric energy used. The quantities and equipment. Manufacturers were requested to of the several kinds of fuel (coal, coke, fuel oil, and report expenditures in 1939 for permanent additions gas) used, and the quantity of electric energy purchased, and major alterations that were charged to fixed-asset by manufacturing establishments in 1939 were reported, accounts and were of the type for which depreciation together with the cost of each. In addition, each accounts are ordinarily maintained. These expendi- establishment that generated electric energy reported

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the quantity produced and the amount sold. The are not adequately represented in the statistics for cost figures were used for editing purposes but were individual States. The industrial areas as constituted not published in detail. Practically the same inquiry for census purposes are not subject to these limitations, was carried on the 1937 schedule, except that no and are given their proper places in the census statistics detailed cost figures were called for. The quantity as coherent, integrated units of industrial activity. and cost figures cover not only consumption for the 26. Changes in figures for earlier years. It will be production of power and heat but those for electric found that some of the tables in this report do not energy cover the use of energy for light and in electro- carry comparative figures for as many earlier years as chemical processes.

did corresponding tables for prior censuses. This is 24. Disclosure of data for individual establishments.- due largely to the fact that it was impracticable to The Bureau of the Census is prohibited by law from carry the adjustments required by the revision of classipublishing any statistics that disclose data for individual fications, outlined in sections 6 and 7 above, back establishments. For this reason it is necessary in some through the figures for all census years. Furthermore, cases to withhold separate figures for an industry or for it will be found that some changes have been made in a State, and to include these figures in an "Other" item, the comparative figures here published, resulting partly despite the fact that the industry or the State concerned from the classification revisions but chiefly from the may be more important than are some of those for which abandonment of certain industries, as explained in separate figures are published. In general, separate section 9. Important differences have been explained, figures are given for each industry and for each State but minor changes are merely indexed to the footnote represented by three or more establishments. In some Revised.cases, however, one or more establishments produce a 27. Changes in industry groups, industry classificavery large proportion of the combined output of three tions, and titles: 1939.—The following list gives the or more in a particular industry or in a State, and in changes in industry groups, titles, and classifications such cases the figures for the industry or for the State between 1937 and 1939 (see also Appendix E): are not given separately but are included in those for

Group 1.-FOOD AND KINDRED PRODUCTS “Other industries" or "Other States." Personnel

" figures are given, however, for all industries and for all Baking powder, yeast, and other leavening compounds.States represented by three or more establishments

Transferred from the Chemicals and Allied Products group.

Beet sugar.-Title changed from “Sugar, beet." (under separate ownership or control), even when the

Blended and prepared flour made from purchased flour.other figures are combined or withheld.

New industry, products of which are blended flour made from 25. Industrial areas.-The 97 counties in which, as purchased flour (not formerly treated as a manufactured prodmeasured by number of wage earners employed, more uct) and prepared (self-rising) flour made from purchased flour than half the manufacturing activities of the country

(formerly classified as a product of the “Cereal preparations”

industry). are concentrated have been grouped, for manufactures

(1) Bread and other bakery products (except biscuit, crackers, census purposes, into 33 industrial areas, none of which

and pretzels); and (2) biscuit, crackers, and pretzels.-Formerly had fewer than 40,000 factory wage earners when these one industry under the industry title “Bread and other bakery areas were established for the 1929 census. The most products.” practical method of establishing the boundaries of these Candy and other confectionery products.- Formerly desig

nated as “Confectionery.” areas has been adopted, namely, that of following

Cane sugar-except refineries.--Title changed from "Sugar county lines. Thus each area comprises, in addition

manufacture, cane." to the city or cities within it, one or more entire Cane-sugar refining.–Title changed from "Sugar refining, counties, even though the industrial activities of the cane." area may not be uniformly distributed throughout all

(1) Canned and dried fruits and vegetables (including canned

soups); (2) pickled fruits and vegetables and vegetable sauces parts of these counties.

and seasonings; (3) preserves, jams, jellies, and fruit butters; The industrial area must not be confused with the

(4) quick-frozen foods; and (5) salad dressings.—New industries "metropolitan district," as established for population- made up of establishments formerly classified in the abandoned census purposes, which includes, together with the industry title "Canned and dried fruits and vegetables; canned central city or cities, all the adjacent and contiguous

and bottled juices; preserves, jellies, fruit butters; pickles, and

sauces." civil divisions having at least 150 inhabitants per

(1) Canned fish, crustacea, and mollusks; and (2) cured fish.square mile.

Formerly one industry under the designation "Canned and cured The industrial areas were established to permit the

fish, crabs, shrimps, oysters, and clams." presentation of statistics for regions of industrial con- Cereal preparations.-Revised to exclude prepared (self-rising) centration. It is obvious that the boundaries of a city four, classified as a product of the "Flour and other grain-mill do not enclose the entire area of which the city is the

products” and “Blended and prepared flour made from pur

chased flour" industries. Corn grits for brewers' use, formerly business and industrial center, and likewise that those

classified as a product of this industry, have been transferred to concentrations of industry that overlap State boundaries the "Flour and other grain-mill products” industry.

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