situation, and a more or less balanced state of equilibrium maintained. Statistics of the major industries relating to production, shipments, and stocks on hand, compiled in recent years by the Department of Commerce and various trade associations have supplied the facts upon which industry can adjust its operating schedules to make production correspond with demand. Their use has contributed in no small measure to this condition of constant but small readjustments, to ironing out the extreme cycles of prosperity and depression that were customary up to a few years ago.

Steel production established a new high record of over 50,000,000 gross tons last year and, with better prices, earnings recovered approximately 33 per cent and were on a par with those of 1926. United States Steel Corporation, the leading factor, increased its earnings from $87,897,000 in 1927 to $113,999,000 in 1928, while the 28 independents making up the remainder of the industry reported a combined gain of 38 per cent.

Automobile manufacturing also established a record of 4,600,000 vehicles, and earnings of 12 companies increased 18 per cent. A large portion of this increase is accounted for by General Motors Corporation whose production was 1,800,000 cars and trucks, netting a profit of $276,468,000 compared with $235,105,000 the preceding year. Without the General Motors organization, earnings of the remaining 11 members of the automobile group increased 21 per cent. Ford Motor Co. figures for 1928 have not been published. Automobile accessories and parts manufacturers showed an 84 per cent gain as a group, reflecting the record activity of the motor industry last year.

Agricultural implement manufacturers experienced continued expansion in sales, and earnings increased 24 per cent over those of 1927. Makers of machinery of various types had a 12 per cent gain, although railroad equipment had another poor year with earnings below either 1926 or 1927. Office equipment, such as typewriters and adding machines, had 1928 net profits 9 per cent better than in 1927.

In the chemical classification, which is necessarily rather broad, including heavy and fine chemicals, drugs, pharmaceuticals and cosmetics, paint, explosives, sulphur, alcohol, etc., earnings of 36 corporations reported to date show a gain of 35 per cent over the previous year.

Eight companies in the motion picture, theater, and general amusement line had profits last year of $36,209,000, and increased 32 per cent over 1927.

Foodstuffs and tobacco are two other industries characterized by steady growth in earnings. Miscellaneous food products, including beverages, increased its 1928 net profit 19 per cent over 1927. Baking has recently become through consolidations an industry of large, strongly financed units, and the steady demand for its products resulted in a gain of 7 per cent in earnings over the previous year. Tobacco is another stable industry that counts on a moderate growth year after year, and 1928 earnings were 3 per cent ahead of 1927.

Meat packers, after suffering from a severe decline in pork prices in 1927, experienced a material recovery in prices and profits last year when earnings gained approximately 100 per cent and were about on a par with 1926.

Copper mining companies benefited by the sensational rise in copper prices that featured the commodity price movement last year. From a low of 1434 cents per pound in June quotations rose to 1634 cents by the end of the year as a result of the heavy domestic and export demand from the building, electrical and automobile industries which ran far ahead of the expansion in production, and the strong statistical position of the metal has since brought a further rise to 191⁄2 cents. Consequently the 1928 statements of producers showed substantial increases in net profits.

PROFITS SUBNORMAL IN CERTAIN INDUSTRIES

Prosperity is only a relative state and some lines in 1928 did not do so well as in the preceding year, while others showed only negligible improvement. Eleven large coal mining companies had combined earnings in 1928 of only $7,773,000, representing a gain of 1 per cent over 1927, which was a very poor year. Cotton goods mills, after a recovery from 1926 to 1927, dropped back again in 1928, when earnings of 19 representative mills decreased 78 per cent. Only two woolen mills, not including American Woolen Co., have so far published reports and these show combined earnings of only $238,000, compared with a deficit of $43,000 in 1927. Silk goods and hosiery manufacturers were handicapped last

1 Since this compilation the American Woolen Co. reported on Mar. 11, 1929, that its losses for the year 1928 amounted to $1,262,263, after deducting $1,956,597.40 for depreciation.

year by fluctuating prices and experienced extremely keen competition. Earnings of the group of 8 leading companies amounted to only $4,713,000, representing a decrease of 25 per cent from 1927.

Building construction last year required an expenditure of approximately $8,000,000,000 and set a new high record, but capacity for production of cement, brick, tile, sand, rock, etc., and other building materials has been expanded rapidly during recent years and competition had an unfavorable effect on prices and earnings. For the group of 25 companies the combined profits were 6 per cent below 1927 and 20 per cent below 1926.

Lumber and furniture did somewhat better, the group making a gain of 7 per cent, but conditions in the lumber industry have not been entirely satisfactory due to curtailed demand and excess mill capacity. Manufacturers of heating and plumbing supplies made somewhat better earnings last year, but this industry also is not so prosperous as might be expected considering our large national building program.

Rubber tire manufacturers suffered during the first half of 1928 from the break in crude rubber prices which at the beginning of the year were around 42 cents per pound and by March had declined to 18 cents, causing heavy losses in inventories on hand and commitments in transit. Active sales through the year enabled the companies to make up in the latter months a large share of the losses, but earnings for the full year were 44 per cent below 1927.

Leather tanning has had a hard row to hoe ever since 1920, and though a remarkable improvement has been made through better organization of the industry and elimination of excess tanning capacity, the demand for leather products is somewhat restricted and return on investment is still subnormal. A troublesome feature is the constant fluctuation in prices of hides, which are produced not in accordance with the demands of the tanners but as a by-product of the meat-packing houses. Shoe manufacturing has also been unsatisfactory and the 9 leather and shoe companies considered as a group (some shoe manufacturers tan their own hides) had earnings 14 per cent below 1927.

Apparel industries such as men's and women's clothing, haberdashery and hats, in which style is of such importance, do not follow the rule of such industries as steel or copper, whose producers all sell a standard product at a uniform price, and whose earnings thus tend to move up or down together. Instead, the individual product and the style factor predominate, and since the total amount of clothing purchased annually by the public is relatively steady, gains of some producers are likely to be at the expense of others. For the apparel group as a whole, profits in 1928 were about on a par with 1927.

Sugar producers and refiners had earnings in 1928 substantially below 1927, although the showing was better than in 1926 when for the group as a whole a net deficit was reported. For several years the industry has suffered from world overproduction and low prices. Cuba, the largest producer, restricted by Government decree the amount of sugar that could be ground in 1926, 1927, and 1928, but has announced that no restriction will be made this year.

Petroleum is another important industry that has in recent years been struggling against overproduction and price cutting. For the 32 companies engaged in production, refining and marketing that have so far published their 1928 reports, earnings are substantially higher than in 1927, but that was one of the worst years in the industry's history. Considering capital investment, the return is still subnormal and, in view of continued heavy production of crude petroleum, authorities hesitate to say that genuine prosperity is to be expected in the near future.

Pulp and paper mill profits were held down last year by the decline in prices of newsprint, combined with heavy new capital demands for the rapid expansion of many companies incident to acquiring more timberland reserves and making hydroelectric power installations. Some newsprint producers, in an effort to keep up plant operations, shifted into the manufacture of book and magazine paper, tissue, bond, and kraft paper, which increased general competitive conditions in the industry.

The following table shows the net profits of American corporations, 1926 to 1928. Figures are now available for 900 corporations and this table has been prepared to show the distribution of profits by industrial groups in 1928, also 1927 and 1926 for comparative purposes. Becuase of the tendency in recent years of private concerns to sell stock publicly and thereafter to issue reports, a tabulation as broad as this gives an interesting and valuable cross section of American business, at the same time indicating the varying degree of prosperity enjoyed by the different lines of business.

American corporation earnings, 1926 to 1928, net profits

From a pamphlet issued by the National City Bank of New York, March, 1929.

IMPORTED DUTIABLE MERCHANDISE, 1923-1927

Mr. BACHARACH. Mr. Chairman, I have here a statement prepared by the Tariff Commission of the 14 various schedules that are protected by a tariff duty. This statement shows for the years 1923 to 1927, inclusive, the amount of imported articles and their particular schedules that are subject to duty, the amount of duties that the Government received, and also the ad valorem percentage. I ask that it be inserted in the record for the information of all the members of the committee.

The CHAIRMAN. Without objection, it is so ordered. (The schedule referred to is as follows:)

1926

1927

STATISTICAL TABULATIONS RELATING TO IMPORTS INTO THE UNITED STATES OF AGRICULTURAL AND NONAGRICULTURAL PRODUCTS, ON THE DUTIABLE AND FREE LISTS, DURING THE CALENDAR YEAR 1927

TABLE I.-Value of dutiable agricultural imports during the calendar year 1927, showing duties collected and average equivalent ad valorem rate of duty, etc. TABLE II (part 1).-Value of dutiable nonagricultural imports during the calendar year 1927, showing duties collected and average ad valorem rates of duty, etc.

(Part 2).Value of imports, with duties collected and average equivalent ad valorem rates of duty, on metals and manufactures, machinery and vehicles, chemicals and related products, and miscellaneous products, calendar year 1927.

(Part 3).-Value of imports, with total duties collected on nonagricultural products on which the average equivalent ad valorem is 40 per cent or more, during the calendar year 1927.

TABLE III.-Value of imports on the free list during the calendar year 1927, segregated according to agricultural and nonagricultural, etc.

TABLE IV.-Value of imports of agricultural and nonagricultural products on the dutiable and free lists, during the calendar year 1927, showing duties collected, percentage of total, equivalent ad valorem, etc.

TABLE V.-Value and percentage of imports on the dutiable and free lists, during the calendar year 1927, together with average equivalent ad valorem rates of duty, etc.

TABLE VI. Summary of value and percentage of imports of agricultural and nonagricultural products on the dutiable and free lists during the calendar year

1927.