and wood, stone and clay products, solidation of independent interests paper products, printing and chemicals. About 79 per cent. of the raw materials consumed are the products of agriculture, about 5 per cent. the products of the forest, 15 per cent. the product of mines and about 0.5 per cent. are the products of the sea. The raw materials are subjected to the first process of manufacture in the basic industries and the products of these industries are, as a rule, an index to the manufactures of the country. The annual production for some of these products is shown in the following statement: 1910. 27,303,567 was practically discontinued pending the decision of the United States Supreme Court in suits instituted against the Standard Oil, American Tobacco, United States Steel Corporation and other companies involving the anti-trust laws. Existing companies have extended their operations so as more thoroughly to cover allied industries. Many companies now not only control the production of a sufficient supply of raw material to meet their requirements, but also the facilities for its transportation, all the processes necessary to the production of the finished products, 1,080,159,509 1,092,951,624 310,762 365,166 4,374,827 Integration of Industries. Specialization has been a feature of the industrial development during recent years. As a rule, the specialization that characterized the earlier development of manufactures tended to the perfection of certain products in separate establishments. The specialization of the present period tends toward concentration of control and the perfection of a large variety of products of the same general character. This integration of industry is a concomitant of large enterprises. It has resulted in the perfection of a multitude of articles that it would have been impossible to produce under the old form of organization. Formerly the perfection of the article depended upon the skill of the individual operator; it now depends largely upon the inventive genius who perfects the machinery for the manipulation of the raw material. It and the placing of them on the market. The United States Steel Corporation is one of the most perfectly organized of these companies. operates iron mines, limestone quarries, lumber mills, coke and cement works, railroads and steamship lines, manufactures brick, terra cotta and fire-clay products, ore and freight cars, pig iron, steel ingots, and a multitude of finished products from iron and steel. Thus the company produces all of its raw material, and controls the railroads and vessels required for its transportation to the factories. It manufactures the material required for the construction and repair of its buildings, and is almost, if not entirely, independent of all other producers. The American Tobacco Company is organized somewhat on the same lines. Ownership. The corporate form of ownership has been constantly increasing and has been the principal Concentration in Large Establish- factor in the formation of large ments. The tendency to concentrate manufacturing plants. About oneindustry into large establishments fourth of the manufacturing estabhas not been so pronounced during lishments are owned by corporations, the year as in the past. The forma- but these are as a rule the largest tion of large companies by the con- and most important, as they give employment to three-fourths of the wage earners and their products form 79 per cent. of the total value of products for all establishments in 1909. There are many companies that own manufacturing plants in different sections of the country. As a rule these separate plants are counted as separate establishments, therefore So far as the number of establish- the classification given in the precedments is concerned, the individual ing and following statements do not form of ownership is still the one of show the number of owners. If all greatest importance. In 1909 there plants operated by the same owner were 140,605 manufacturing estab- were counted as a single establishlishments operated by individuals, ment, the magnitude of the indior 52.4 per cent. of the total number vidual operations would be much reported for the United States. greater than is indicated. These establishments gave employment to 12.2 per cent. of the total number of wage earners, but reported only 9.9 per cent. of the total value of products. The percentages for 1904 were 52.7 per cent. for number of establishments, 13.8 per cent. for average number of wage earners, and 11.5 per cent. for value of product. The following statement shows the distribution of manufacturing establishments according to the character of ownership: Considering individual plants as separate establishments, it appears that there were 3,061 in 1909 for which the annual product was $1,000,000 or over. In number these establishments represented only 1.1 per cent. of the total, but they gave employment to 30.5 per cent. of the wage earners, and the value of their products formed 43.8 per cent. of the total value of products for all establishments. The figures indicate that even during the short period of five years these very large establishments ber, there being 93,349 of them in 1909; but they gave employment to only 2.2 per cent. of the total number of wage earners, while their products formed only 1.1 per cent. of the total value of products of manufacturing establishments. Establishments that have an anhave increased their operations to nual product of less than $5,000 may such an extent that they now control be classed as small. These estaban appreciably larger proportion of lishments still predominate in numthe manufactures of the country. There were 27,823 establishments in 1909 that had an annual product of $100,000 but less than $1,000,000. These establishments represent 10.4 per cent. of the total number, and they gave employment to 43.8 per cent. of the wage earners, while their From the following statement, products formed 38.4 per cent. of the which classifies the number of estabtotal products for all establishments. lishments according to the value of Combining these two groups of es- their products, it appears that only tablishments, it appears that 11.5 per the largest establishments, those cent. of the number gave employ- with an annual product of $1,000,000 ment to 74.3 per cent. of the wage or more, had a larger proportion of earners, and their products formed the total value of products in 1909 82.2 per cent. of the total value of than in 1904, the relative proportion products for all manufacturing es- of every other class having decreased tablishments. in the five-year interval: Electrical Industries.-There has bon disulphide, electrodes, carbon been a great increase in the manu- black, carborundum, caustic soda, factures that depend upon the utili- bleaching powder, alundum, sodium, zation of electricity and internal- and similar commercial products are combustion engines. The annual largely concentrated at Niagara production of electrical machinery, Falls, N. Y., Sault Ste. Marie, Mich., apparatus and supplies increased and other points where large water from $105,832,000 in 1899 to $243,- power is available. They represent 965,000 in 1909. In 1907 there were a new industry that has developed 4,714 central electric stations, and almost entirely during the past dethe gross annual income from the cade. (See XXVIII, Electrochemissale of current and other activities try.) incident to its generation amounted Moving Pictures. During the last to $175,642,000. Electric railways five years this industry has come have now entirely superseded the into existence and assumed large horse and cable car, and electricity proportions. The census of 1909 is being introduced as a motive shows 16 establishments with an power by steam railroads, especially annual product of $4,206,448 engaged for terminal facilities, in large cities. in the manufacture of the machinery, It made possible the terminal station taking and developing the pictures, of the Pennsylvania Railway Co. in mounting films on reels, making lanNew York City that was opened dur- tern slides for illustrated songs, and ing the year. Many of the large the manufacture of miscellaneous manufacturing establishments, office supplies for the industry. But the buildings, hotels and department industry is of much greater imporstores now have their independent tance than these figures indicate, as electric generating plants. It is esti- the manufacture of the machines for mated that there are 80,000 of these taking the pictures, motors, disisolated electric systems in the solvers, etc., are a part of the maUnited States. (See XXXII, Elec- chine-shop and electric-equipment trical Engineering.) industries; the taking of the picAutomobiles and Motor Boats.tures, staging of the plays, and deThe internal-combustion engine finds velopment of the films are industries its principal application in the auto- that can not be measured statistimobile and the motor boat. The cally. annual production of automobiles in- Iron and Steel.-The increased use creased from 3,723 in 1899 to 127,289 of iron and steel in building and in 1909 and the value of all pro- structural work has greatly stimuducts of the factories, including lated its production. The annual parts and supplies from $4,748,000 to production of pig iron increased from $249,202,000. The annual production 13,621,000 tons in 1899 to 25,795,471 for 1911 will probably be in excess in 1909, of steel from 10,685,000 to of 200,000 machines of all kinds. 23,523,000 tons. The production for The industry is largely concentrated 1910 was 27,303,567 tons of pig iron in Michigan, the products of that and 26,094,919 tons of steel. There state forming 39 per cent. of the is no other industry that is so inditotal for the United States. (See cative of the industrial progress of XXXII, Automobiles.) the country and the development of There are about 10,000 motor large enterprises. The number of boats manufactured annually and it is estimated that there are over 50,000 in use. Sail boats and row boats have been rapidly converted by the installation of the small engine, and the number of motor boats appearing annually is much larger than the number manufactured. Electrochemical Industries. The now single establishments capable of electrochemical industries for the producing more iron than all the manufacture of calcium carbide, car- furnaces in the country in 1870. The blast furnaces now in operation varies according to the demands of the industry, but there were 388 completed furnaces with a daily capacity of 101,267 tons in 1909. In 1870 there were 574, with a daily capacity of 8,357 tons and the annual production was 1,665,000 tons. There are $73,393,000 $54,423,000 $1,709,265,000 $821,109,000 $163,641,000 $506,323,000 $144,799,000 $1,254,896,000 $613,111,000 $106,944,000 $370,862,000 $109,556,000 $982,560,000 $467,240,000 $82,066,000 $310,180,000 $81,082,000 $41,992,000 $349,193,000 $146,256,000 $46,012,000 $100,398,000 $45,929,000 $10,598,000 $263,074,000|| $106,444,000 $36,070,000 $78,975,000 $31,510,000 $10,075,000 $217,407,000] $94,040,000 $27,573,000 $64,389,000 $24,116,000 $7,289,000 $947,676,000 $368,273,000 $110,049,000 $322,364,000 $107,575,000 Value added by manufacture (value of products less cost of materials). 1909 $102,357,000 $34,472,000 $13,056,000 $27,562,000 $23,249,000 $80,229,000 $30,487,000 $10,418,000 $21,588,000 $14,053,000 $3,683,000 $59,013,000 $22,113,000 $6,628,000 $17,330,000 $10,264,000 $2,678,000 $1,592,482,000 $629,699,000 $200,143,000 $507,219,000 $196,475,000 $58,946,000 $1,164,706,000 $450,468,000 $137,077,000 $380,934,000 $133,288,000 $62,939,000 $886,883,000 $339,200,000 $95,835,000 $296,990,000 $107,256,000 $47,602,000 $644,806,000 $261,426,000 $90,094,000 $184,855,000 $88,900,000 $19,531,000 $4,018,000 |