EIGHT PRO1935 1

This Appendix presents the results of a study of unpublished Census compilations made available through the courtesy of the Bureau of the Census. The National Resources Committee assumes full responsibility for the accuracy of the statistics presented in this study, and the Bureau of the Census assumes responsibility for the presentation of the figures in such a manner as to avoid disclosing, even approximately, any information pertaining to an individual company or concern.

In order to measure concentration within each of the Census industries, the reports of all establishments in each industry under a common ownership were combined, and treated as those of a single producer. Information is shown for the four and eight most important producers in each of 275 Census industry classifications.

Special tabulations were prepared from the 1935 Census of Manufactures data, ranking all the producers within each industry according to three criteria, namely, value of products, total persons employed (wage earners plus salaried employees) and "value added by manufacture" within the industry. In the tables presented, industries are grouped according to size based on total number of persons employed. Those employing 100,000 or more persons in 1935 appear in the first section of the tables, those employing between 25,000 and 100,000 are shown in the second section of the tables, and those employing less than 25,000 persons appear in the third section. Within each of these groups on table I, industries are arranged according to the proportion of the total persons employed in each industry by the four producers employing the greatest number of persons in the industry. In table II industries are arranged according to the proportion of the value of product of each industry contributed by the largest four producers in the industry. In many of the industries, the ranking of the eight largest producers by value of products and by "value added by manufacture" was the same. Table III shows only those industries in which the largest four or the largest eight producers ranked according to "value added by manufacture" differed from those in the table showing producers ranked according to value of products.

Six small industries were so concentrated that the data for the largest four and the largest eight producers could not be shown without approximate disclosure of information held confidential by the Bureau of the CenThese industries are listed separately in table III. In certain industries, particularly the textile indus

sus.

1 Appendix 7 was prepared by Grace W. Knott, assisted by Ruth Rosenwald.

tries, the practice by some manufacturers of letting out work on a contract basis to independent contract shops occasions slight distortion in the relationship between total persons employed and number of wage earners and the value of product, cost of materials, and "value added by manufacture."

In each table data are shown indicating the activity of the largest four and the largest eight producers as reflected in the following items along with the percent which these constitute of the total industry.

1. Number of persons employed (salaried employees and average number of wage earners). 2. Wages and salaries.

3. Wage earners.

4. Wages.

5. Value of product.

6. Cost of materials, containers, fuel, and purchased electric energy.

7. Value added by manufacture.

In these tables, the Census Bureau definition of terms is employed. Where noncensus terms are used in the tables the exact meaning is given in the general description of terms below:

1. Number of persons employed.-The figures for the number of "persons employed" as used in this report is the sum of the number of salaried employees as of December 15, and the average number of wage earners for the year. These figures do not include data for persons employed in central administrative offices or proprietors and firm members.

2. Number of wage earners.-The figures for the number of wage earners is the quotient of the total manmonths reported to the Bureau of the Census, divided by 12, resulting in an average for the year.

3. Wages. The figures shown for this item represent the total amount paid to wage earners during the year. 4. Value of product.-The amounts under this heading are the values, at the factory or plant, of all commodities produced (or, for some industries, receipts for work done) during the census year, whether sold, transferred to other plants, or held in stock.

5. Cost of materials, etc.-The amounts under this heading include the following census categories: materials, mill and shop supplies and containers, fuel, and purchased electric energy used during the period covered.

6. Value added by manufacture. This figure is calculated by subtracting the cost of materials, supplies, containers, fuel, and purchased electric energy from the value of products.