[Trade Journal]
Publication: Verbatim Record of the Proceedings of the Temporary National Economic Committee
Washington, DC, United States
vol. 1, p. 25-39, col. 1-3
VERBATIM RECORD
of the
Proceedings of the
TEMPORARY NATIONAL
ECONOMIC COMMITTEE
VOLUME 1
December 1, 1938 to January 20, 1939
CONTAINING
Economic Prologue
Automobile Patent Hearings
Glass Container Patent Hearings
Presentation on Patents by Department of Commerce
Published 1939 by
THE BUREAU OF NATIONAL AFFAIRS, INC.
WASHINGTON, D. C.
·
·
Reference Data Section II
in re Proceedings of the
Temporary National Economic Committee
WASHINGTON, D. C., Jan. 10, 1939
THE GLASS CONTAINER ASSOCIATION OF AMERICA, 19 WEST 44TH STREET, NEW YORK, N. Y., HAS SUBMITTED FOR THE Record of THE TEMPORARY NATIONAL ECONOMIC COMMITTEE A SURVEY OF THE GLASS CONTAINER INDUSTRY. THE SURVEY TAKES UP IN ORDER THE HISTORY OF INDIVIDUAL COMPANIES WITH PLANT LOCATION SINCE 1920, NAME AND LOCATION OF GLASS CONTAINER MANUFACTURERS, RELATIVE IMPORTANCE OF EACH CLASS OF PRODUCT, COMPANIES PRODUCING AND SHIPPING EACH CLASS OF PRODUCT, RELATIONSHIP OF SHIPMENTS TO CAPACITY SINCE 1928, PROGRESS OF INDIVIDUAL COMPANIES SINCE 1928, TREND OF PRICES IN THE INDUSTRY, EMPLOYMENT AND WAGES , AND ACTIVITIES OF THE GLASS CONTAINER ASSOCIATION. THE SURVEYFOLLOWS IN FULL TEXT:
THE Glass Container Industry may be defined as the manufacturers who produce and sell glass bottles, glass jars, and glass accessories for glass bottles and jars.
SCOPE OF INDUSTRY
The industry at the present time consists of forty-five known companies, operating ninety factories. The factories are located in seventeen different states. The location of these factories may be listed as follows:
6 California.
1 Florida.
6 Illinois.
11 Indiana.
1 Kansas.
4 Maryland.
1 Mississippi.
6 New Jersey.
7 New York.
6 Ohio.
7 Oklahoma.
18 Pennsylvania.
1 South Carolina.
1 Tennessee.
2 Texas.
1 Washington.
11 West Virginia.
DESCRIPTION OF INDUSTRY
The products of the industry are produced primarily by automatic machine. Production by the hand method is continued by five companies, though four of these five also produce by automatic equipment. Production by the hand method has not been included in this study except where Census figures have been used, and where it has been impossible to separate this production from automatic production.
The value of hand production has been less than 2% of the total value of glass containers during this period. The value in 1929 amounted to approximately $1,800,000.00, and the value in 1937 amounted to approximately $1,000,000.00.
HISTORY OF INDIVIDUAL COMPANIES, WITH PLANT LOCATION SINCE 1920
On the accompanying chart we show the operating history of the individual companies in the Glass Container Industry, and the operation of individual plants since the year 1920.
(Chart is shown on Page 3 et seq.)
Change in name of company has been noted in the year when this change occurred.
Plants such as the Busch Glass Mfg. Company in St. Louis, and William Franzen & Son, Inc., in Milwaukee, that specialized in beer bottles, and went out of business shortly after 1920, have not been included in this study. Also, such plants as the V. & S. Bottle Company of Roulette, Pa., and the General Glass Works of Ridgway, Pa., that operated intermittently by the hand method during the early part of this period, have not been included. Also, such plants as the Puritan Glass Company of Massillon, Ohio, and the Birmingham Glass Works of Tarrant, Ala., that operated only a few months, have not been included. The study does include all plants that operated for an extended period during these eighteen years.
In the plant history, we have indicated the period of operation and the period of idleness, and have indicated the approximate size of all plants, or companies, that went out of business, or that were dismantled.
In reviewing this history it should be noted that individual plants have generally increased in size, and have materially increased their productive capacity.
In summary, the number of plants has been reduced from 102 to 90. During the later period there has been an increasing number of idle plants, so that at the present time there are 78 plants operating, and 12 plants that are idle.
In 1920, there were 80 different operating companies. During the 18 year period, 22 new companies have come into the industry, 29 companies have gone out of business, and 28 companies have been consolidated with other companies in the industry, so that in 1938 we have a net of 45 companies.
For the greater part, plants in the industry are located in small towns, and represent the principal industry in these small towns. The location of present plants may be summarized by size of town as follows:
Number of
Plants Population
27 Under 10,000
22 10,000 to 25,000
15 25,000 to 50,000
7 50,000 to 100,000
5 100,000 to 250,000
5 250,000 to 500,000
9 Over 500,000
Name and Location of Glass
Container Manufacturers.
The following are the names and location of companies included in the Glass Container Industry.
Companies located west of the Rocky mountains are noted separately, and are treated separately throughout the greater part of this study. Statistical records are kept by the Glass Container Association for each group and since the history for the western division of the industry is somewhat different from the eastern it seems advisable for the greater part to show them as separate groups.
Anchor-Hocking Glass Corp., Lancaster, Ohio.
Armstrong Cork Company, Whitall-Tatum Company Division, Millville, N. J.
Ball Brothers Company, Muncie, Ind.
Brockway Glass Company, Brockway, Penna.
Buck Glass Company, Baltimore, Md.
Carr-Lowrie Glass Company, Baltimore, Md.
Chattanooga Glass Company, Chattanooga, Tenn.
Diamond Glass Company, Royersford, Penna.
Fairmount Glass Works, Inc., Indianapolis, Ind.
Florida Glass Manufacturing Co., Jacksonville, Fla.
Foster-Forbes Glass Co., Marion, Ind.
Gaynor Glass Works, Salem, N. J.
Glenshaw Glass Company, Inc., Glenshaw, Penna.
J. T. & A. Hamilton Co., Pittsburgh, Penna.
Hart Glass Manufacturing Co., Dunkirk, Ind.
Hazel-Atlas Glass Company, Wheeling, W. Va.
Alexander H. Kerr & Company, Sand Springs, Okla.
*Knox Glass Bottle Company, Knox, Penna.
*Knox Glass Bottle Company, Jackson ,Miss.
*Marienville Glass Company, Marienville, Penna.
*Metro Glass Bottle Company, Jersey City, N. J.
*Oil City Glass Company, Oil City, Penna.
*Pennsylvania Bottle Company, Sheffield, Penna.
*Wightman Glass & Bottle Mfg. Co. Parkers Landing, Penna.
(*Consolidated in one total for G. C. A. statistics.)
Lamb Glass Company, Mt. Vernon, Ohio.
Laurens Glass Company, Laurens, S. C.
Liberty Glass Company, Sapulpa, Okla.
Maryland Glass Corporation, Baltimore, Md.
Obear-Nester Glass Company, East St. Louis, Ill.
Olean Glass Company, Olean, N. Y.
Owens-Illinois Glass Company, Toledo, Ohio.
Pierce Glass Company, Port Allegheny, Penna.
F. E. Reed Glass Company, Rochester, N. Y.
Sterling Glass Company, Chicago, Ill.
Swindell Brothers, Baltimore, Md.
Thatcher Manufacturing Company, Elmira, N. Y.
Tygart Valley Glass Company, Washington, Penna.
Universal Glass Products Company, Parkersburg, West Va.
T. C. Wheaton Company, Millville, N. J.
COMPANIES LOCATED ON THEWEST COAST
Glass Containers, Inc., Los Angeles, Calif.
Hazel-Atlas Glass Company of Calif., Oakland, Calif.
Latchford-Marble Glass Company, Los Angeles, Calif.
Maywood Glass Company, Los Angeles, Calif.
Northwestern Glass Company, Seattle, Wash.
Owens-Illinois Pacific Coast Co., San Francisco, Calif.
Explanation of Glass Container
Industry Classifications
The products of the industry are classified in the following groups:
1. Narrow Neck—Food Containers
Includes: Catsup, chili sauce, cider (non-carbonated) clam juice, coffee (liquid), condiments, cruets, fountain concentrates, grape juice (non-carbonated), loganberry juice (non-carbonated), orange juice (non-carbonated), oyster cocktail, pectin, prune juice (non-carbonated), salad dressing, spices (liquid), syrup, table sauces, tomato juice, vinegars.
2. Wide Mouth—Food Containers and Jars
Includes: Anchovies, candies, caviar, celery salt, chop suey (not sauce), coffee, crushed fruits, horse radish, jams, maraschino cherries, marshmallow cream, mayonnaise, mince meat, meats, mushrooms (not sauce), mushroom spawn, mustard, olives, onions, peanut butter, pickles, preserves, relish, salad dressing (w/m jars only), salt and pepper style shakers (for packers' use, sea foods, soups, spaghetti, sugar, vegetables.
Also includes any other Wide Mouth Jars or containers which are used by packers for condiments and food products not specifically mentioned in the group of products herein listed.
3. Pressed-Food Containers
Includes: Pressed tumblers, but does not include domestic jelly glasses.
4. Pressure and Non-Pressure Ware
Includes: Chocolate milk drinks (beverage style containers), ginger ale, water (carbonated), water (non-carbonated), siphon bottles, soda, soft drinks (non-carbonated).
Special note should be taken that this does not include fruit juices, beer, wines, cordials, champagne, gin, whiskey or any kind of alcoholic liquor or beverage.
5. Beer bottles
Includes: All bottles to be used as containers for beer, ale, porter and all other alcoholic cereal beverages bottled under carbonation. This not only covers the generally accepted beer style container but also any other style of container used for products as explained under this caption.
6. Liquor Ware
Includes: Benedictine, bitters, brandies, champagne, cordials, Creme de Menthe, flasks (for alcoholic beverages), gins, rum, vermouth, whiskeys, wines.
Also includes all alcoholic liquors and beverages except beer, porter, ale and other alcoholic cereal beverages bottled under carbonation.
7. Medicinal and Toilet Ware
Includes: Acid bottles (not incl. 5 and 10 gal. carboys), argyrol, bath salts, bay rum, brilliantine, capsules, castor oils, chemicals, citrate of magnesia, cod liver oil, cosmetics, cuticle oil, cuticle remover, deoderants, dentifrice, druggists presc. ware, embalming fluid, essential oils, face creams, flavoring extracts, hair tonics, insecticides, iodine, liniments, lotions, mercurochrome, mouth wash, nail polish, nursers, perfumes, peroxides, pharmaceuticals, proprietary medicines, pomades, sachet, serums, shampoos, shaving cream, smelling salts, soaps, spraying machine jars, sterilizers, tablets, talcum powders, toilet preparations, toilet waters, vaselines, witch hazel.
Also included are any other containers manufactured for products not specifically mentioned in this list which, however, because of their general character belong to this group.
8. General Purpose Containers
Includes: Ammonias, artists' colors, battery jars, bluings, carboys (5 gal.), carboys (10 gal.), cement, cleaning fluids, dyes, fire extinguishers, floats, floor wax, flower pots, glue, inks, linseed oil, mucilages, oil dispensing bottles, oil stove reservoirs, pantry jars (not packers ware), paints, polishes, refrigerator bottles (not packers ware), sewing machine oil, shakers (for table use only), shellac, soap dispensing globes, stain, table cream jars (1 oz. and 2 oz.), turpentine, varnish, washing fluids.
Includes all other miscellaneous items which cannot be classified in any of the other eight classifications.
9. Milk Bottles
Includes: Cottage cheese jars, cream bottles, milk bottles, milk shape liquid malted milk or chocolate milk bottles used by dairies.
The following containers should be excluded from the milk bottle classification: Narrow neck or soda style bottles used by dairies or soft drink bottlers for liquid malted milk or chocolate drinks. (See beverage). Infants' nursing bottles. (See medicinals and toilets). Jars used for malted milk or other milk products in powdered or granular form. (See wide mouth). 1 oz. and 2 oz. table cream jars. (See general purpose). Mushroom spawn bottles. (See wide mouth food).
10. Domestic Fruit Jars
To include all wide mouth containers to be used for home preserving of fruits and vegetables. Does not include packers ware for packaging commercial products and which can be reused in the home for domestic purposes after the package has been emptied.
11. Domestic Jelly Glasses
To include all jelly glasses to be used for home packing. Does not include packers ware for packaging commercial products.
Relative Importance of Each Class
of Product and the Companies
Producing Each Class.
On the following chart we show the relative importance of each class of product to the industry's total shipments. Alternate years have been taken, starting with the year 1929. Eastern and Western classifications are shown on separate charts.
Following the charts on product classification we show the companies that produced and shipped each class of product during 1937.
Pressed ware companies actually should include the Libbey Glass Company, Corning Glass Works, Federal Glass Company, Bartlett-Collins Company, and the United States Glass Company, who produce this general classification of product, either pressed, or pressed and blown. Their figures are not included because it is impossible to differentiate between tumblers used as containers and tumblers used for drinking glasses.
It should be noted that Knox Glass Associates on the second chart represents the following individual companies:
Knox Glass Bottle Company, Knox, Pa.
Knox Glass Bottle Company, Jackson, Miss.
Marienville Glass Company, Marienville, Pa.
Metro Glass Bottle Company, Jerşey City, N. J.
Oil City Glass Company, Oil City, Pa.
Pennsylvania Bottle Company, Sheffield, Pa.
Wightman Glass & Bottle Company Mfg. Co., Parkers Landing, Pa.
Companies in the East that ship West, are not included in the chart of companies producing in the West. Many companies ship West, but Western companies do not ship East.
Companies Producing and Shipping
Each Class of Product During
1937 — Eastern Manufacturers.
NARROW NECK GLASS BOTTLE
COMPANIES
Anchor-Hocking Glass Corporation.
Ball Brothers Company.
Brockway Glass Company.
Chattanooga Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Foster-Forbes Glass Company.
Glenshaw Glass Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
F. E. Reed Glass Company.
Sterling Glass Company.
Thatcher Manufacturing Co. (Olean).
Three Rivers Glass Company.
Tygert Valley Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
PRESSED WARE COMPANIES
Anchor-Hocking Glass Corporation.
Hazel-Atlas Glass Company.
WIDE MOUTH BOTTLE COMPANIES
Anchor-Hocking Glass Corporation.
Ball Brothers Company.
Brockway Glass Company.
Buck Glass Company.
Carr-Lowrey Glass Company.
Chattanooga Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Florida Glass Manufacturing Company.
Foster-Forbes Glass Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Laurens Glass Works, Inc.
Maryland Glass Corporation.
Owens-Illinois Glass Company.
F. E. Reed Glass Company.
Sterling Glass Company.
Thatcher Manufacturing Co. (Olean) .
Three Rivers Glass Company.
Tygert Valley Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
PRESSURE & NON PRESSURE WARE
CONTAINERS
Anchor-Hocking Glass Corporation.
all Brothers Company.
Buck Glass Company.
Chattanooga Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Florida Glass Manufacturing Company.
Glenshaw Glass Company.
J. T. & A. Hamilton Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Laurens Glass Works, Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
Pierce Glass Company.
F. E. Reed Glass Company.
Three Rivers Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
BEER BOTTLE COMPANIES
Anchor-Hocking Glass Corporation.
Ball Brothers Company.
Brockway Glass Company.
Fairmount Glass Works, Inc.
Florida Glass Manufacturing Company.
Glenshaw Glass Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
Pierce Glass Company.
F. E. Reed Glass Company.
Swindell Brothers, Inc.
Three Rivers Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
LIQUOR WARE COMPANIES
Anchor-Hocking Glass Corporation.
Ball Brothers Company.
Brockway Glass Company.
Buck Glass Company.
Carr-Lowrey Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Foster-Forbes Glass Company.
Glenshaw Glass Company.
J. T. & A. Hamilton Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
Pierce Glass Company.
F. E. Reed Glass Company.
Sterling Glass Company.
Swidell Brothers, Inc.
Thatcher Manufacturing Co. (Olean).
Whitall-Tatum Co. (Armstrong Cork).
MEDICINAL & TOILET PREPARATION
COMPANIES
Anchor-Hocking Corporation.
Ball Broothers [sic] Brothers Company.
Buck Glass Company.
Brockway Glass Company.
Carr-Lowrey Glass Company.
Chattanooga Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Foster-Forbes Glass Company.
J. T. & A. Hamilton Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates , Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
Pierce Glass Company.
F. E. Reed Glass Company.
Swindell Brothers, Inc.
Three Rivers Glass Company.
Tygert Valley Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
GENERAL PURPOSE CONTAINER
COMPANIES
Anchor-Hocking Glass Corporation.
Ball Brothers Company.
Brockway Glass Company.
Buck Glass Company.
Carr-Lowrey Glass Company.
Diamond Glass Company.
Fairmount Glass Works, Inc.
Florida Glass Manufacturing Company.
Gaynor Glass Works.
Glenshaw Glass Company.
Hart Glass Manufacturing Company.
Hazel-Atlas Glass Company.
Knox Glass Associates, Inc.
Maryland Glass Corporation.
Obear-Nester Glass Company.
Owens-Illinois Glass Company.
Pierce Glass Company.
F. E. Reed Glass Company.
Sterling Glass Company.
Three Rivers Glass Company.
Tygert Valley Glass Company.
Whitall-Tatum Co. (Armstrong Cork).
MILK BOTTLE COMPANIES
Buck Glass Company.
Florida Glass Manufacturing Company.
J. T. & A. Hamilton Company.
Lamb Glass Company.
Liberty Glass Company.
Owens-Illinois Glass Company.
F. E. Reed Glass Company.
Thatcher Manufacturing Company.
Universal Glass Products Company.
FRUIT JAR COMPANIES
Ball Brothers Company.
Hazel-Atlas Glass Company.
Owens-Illinois Glass Company.
Alexander H. Kerr & Company.
F. E. Reed Glass Company.
JELLY GLASS COMPANIES
Ball Brothers Company.
Hazel-Atlas Glass Company.
Alexander H. Kerr & Company.
West Coast Manufacturers
NARROW NECK BOTTLE COMPANIES
Glass Containers, Inc.
Latchford Marble Glass Company.
Hazel-Atlas Glass Company of Calif.
Maywood Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
WIDE MOUTH BOTTLE COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Maywood Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
MILK BOTTLES, FRUIT & JELLY
GLASSES & PRESSED FOODWARE
Hazel-Atlas Glass Company of Calif.
Owens-Illinois Pacific Coast Co.
PRESSURE & NON-PRESSURE WARE
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
BEER BOTTLE COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
WINE BOTTLE COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Maywood Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
LIQUOR WARE COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Maywood Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Company.
MEDICINAL & TOILET PREPARATION
COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Latchford Marble Glass Company.
Maywood Glass Company.
Northwestern Glass Company.
Owens-Illinois Pacific Coast Co.
GENERAL PURPOSE CONTAINER
COMPANIES
Glass Containers, Inc.
Hazel-Atlas Glass Company of Calif.
Maywood Glass Company.
Owens-Illinois Pacific Coast Co.
Relationship of Shipments to
Capacity Since 1928
The following chart shows the relationship of shipments to capacity in total number of gross since 1928.
SHIPMENTS in gross , rather than production, have been selected for this study because production records are not available prior to 1932. It was found, by a study of the figures since 1932, for which production records are available, that shipments quite accurately reflect the production within a fiscal year period.
CAPACITY for the industry has been computed by using a mathematical formula for each plant. This capacity is divided into active and potential. Active capacity is considered as capacity actutually [sic] actually operating, or capable of operating within a period of 30 days. Potential capacity is considered as capacity where major repairs are necessary, and which cannot be put into operation within the 30 day limit. On the chart, the potential capacity line is the total of active capacity, plus potential capacity, and equals the total capacity for the industry.
The melting area of a glass furnace determines quite accurately the amount of glass that can be produced by the glass furnace each day. In 1928 good operating furnaces were producing a ton of packed glass from 12 sq. ft. of melting area. Through improvement in tank design, better methods of firing, and generally improved efficiency in tank operation, this has been reduced so that currently good operating tanks are producing a ton of packed glass from 8 sq. ft. of melting area. This change has not been abrupt, but rather has been a steady and constant improvement each year.
It may be noted that some furnaces in the industry have, and are obtaining, a better performance than this, while other furnaces are not obtaining this performance. An average performance would be impractical to obtain because many furnaces are not called upon for capacity operation. By this we mean that business is not sufficient to operate all of the equipment on the furnace, or to in many cases justify all of the equipment on the furnace, or to in many cases justify the expenditure for new and improved equipment.
The operation of many tanks in the industry proves that if the business were available, all tanks could meet the current capacity figure of a ton of glass for 8 sq. ft. of melting area.
The chart reflects the improvement yearly in the efficiency of glass furnaces from a ton of glass for 12 sq. ft. of melting area, to a ton of glass for 8 sq. ft. of melting area.
The working days per year are based on 280 days. This is arrived at by taking the total of 365 days, less 52 Sundays, less 5 holidays, and less 28 working days for tank repairs, leaving a net of 280 working days per year. The operation is continuous, and the working day is 24 hours. While many glass furnaces operate for a longer period than the 280 days, it is conservative to calculate capacity on this basis. The number of gross for each company is computed by using the average weight bottle produced by that company.
ACTUAL PERFORMANCE DURING 1937.
Following the charts on shipments and capacity, we show by tabulation the performance of individual companies against this capacity figure for the year 1937, and for the month of June, which was the peak production month during the year.
In the East, companies showing a low percentage of operation are companies that have specialized in certain classes of product, and have maintained a large capacity for peak periods of operation.
Some of these classes have become smaller, and others have shown very little growth, certainly not in proportion to the increase in capacity. (Refer to chart on shipments by classes of ware). While the majority of these companies have started producing additional classes of product during the last two or three years, this additional production has not become sufficient to bring their operation near the industry average.
In the West, the growth of business and of productive capacity have been very rapid. Construction of new capacity has not been in direct relationship to the increase in business. In 1936-37, two of the medium and small companies added new furnaces which more than doubled their capacity. Other companies are adding to their capacity in 1938.
Companies in the industry have been classified as large, medium and small.1928 was used for this classification. Large companies are defined as those that shipped 1,000,000 gross or more in 1928. Medium sized companies are defined as those that shipped between 200,000 and 1,000,000 gross in 1928. Small companies are defined as those that shipped less than 200,000 gross in 1928.
Individual company identity has not been disclosed because of the confidential nature of the information.
Percentage Operation Pounds
Produced to Capacity for 1937
(Capacity based on eight square feet of active melting area per ton packed.)
PROGRESS OF INDIVIDUAL COMPANIES AND GROUPS SINCE 1928
For this chart, individual companies are given a number so that confidential information will not be disclosed.
Companies in the industry have been classified as large, medium and small. 1928 was used for this classification. Large companies are defined as those that shipped 1,000,000 gross or more in 1928. Medium sized companies are defined as those that shipped between 200,000 and 1,000,000 gross in 1928. Small companies are defined as those that shipped less than 200,000 gross in 1928.
Shipments for each year since 1928 are related to the base year. The percentage of increase or decrease from this base year is shown on the chart. With this percentage as an index number the progress of the individual companies is clearly shown.
For companies that have started since1928 , the second year of operation was taken as the base.
Trend of Prices in the Glass
Container Industry
The following chart shows the trend of prices in the Glass Container Industry as reported by the Bureau of Census. We believe this quite accurately reflects the general trend, though, of course, it does not permit an analysis of this trend by classification of product. The average size bottle during this period has remained practically constant, the maximum variation in weight being four pounds per gross. The average weight in 1932, the year prior to the manufacture of liquor bottles and beer bottles, showed an average weight per gross of 95.3 pounds. In 1937, including liquor and beer bottles, the average weight was 95.9 pounds per gross. It should be noted that the popular demand for fancy shapes and designs has added materially to the value of certain lines. It should also be noted that within recent years many bottles are decorated with a permanent ceramic label or design, which has added materially to the value of the bottle. It should also be noted that in the earlier periods much of the glass in certain lines was shipped in bulk, or crates, with the customer providing his own package. At the present time these packages are supplied by the glass manufacturer. These added costs and services cannot be reflected in an overall figure such as that given by the Bureau of Census.
REUSE CONTAINERS
There has been considerable public comment about the cost of beer bottles and milk bottles. The cost of these bottles per trip to the brewery, and to the dairy, maybe stated as follows.
In 1935, the accounting firm of Touche, Niven & Co. made a study of costs for four representative breweries. Their report showed that the cost of beer bottles, and beer bottle cases, amounted to 1 and 77/100 cents per case of 24 bottles. This is a cost of $0.00074 or seventy-four thousandths of a cent, for the use of each bottle and case per trip.
From a study made by the Department of Agriculture, milk bottles make an average of 34 trips. For the year 1937, the Census figures indicated a cost for milk bottles of $5.33 per gross. This indicates that the cost for milk bottles to the dairy is $0.00109 per bottle, or approximately 1/10 of a cent for each trip that a milk bottle makes.
Employment and Wages
The following charts showing employment and payroll data quite clearly set forth the labor history of the industry since 1929.
We have related this labor data to volume of production, and to value of product, to measure employment during the period.
For illustration, in 1929, 27-7/10 employees produced 1,000 gross of bottles in one week. In 1937, 29-4/10 employees were required to produce 1,000 gross of bottles in one week.
The average labor cost per gross has increased approximately 13 per cent during this period, while the average value of product has decreased approximately13 per cent.
Employment in the industry has been continuous, and without noted interruptions. Labor turnover has been small, and few employees ever leave the industry. Itis significant that the great majority of supervisors and executives have come from among the employees in the industry.
Labor in the industry has been organized for a great many years. Labor relations have been friendly, and good. During this nine-year period, strikes not authorized by the Union closed two individual plants for approximately one week. The Union authorized one strike that closed one plant approximately three days.
A tabular recapitulation of employment and payroll data for the total Glass Container Industry, East and West Coast, 1929-1938, is printed on the following page.
The Glass Container Association
Activities
1. Transportation.
Through the Association, transportation of raw materials, containers and packaged food products, have been studied in detail. This has resulted in an equitable adjustment of freight rates, and a relationship of practically all freight rates in the industry to a definite railroad classification basis. The Association has supplied the railroad classification committees with information, also has represented the industry before the Interstate Commerce Commission.
The Association also, by presentation of facts to the railroads, and to the Interstate Commerce Commission , was instrumental in getting an equitable adjustment of freight rates on foods packed in glass.
The Association is recognized by the railroads, by the Classification Committee, and by the Interstate Commerce Commission as the representative of the Glass Container Industry. This relationship has resulted in a fair basis of rates equitably adjusted for every member of the industry.
2. Standardization.
Through the Association, finishes on glass bottles have been standardized and Improved. It is now possible for manufacturers of glass, and manufacturers of caps and closures, to sell their products freely with the assurance that the package will be satisfactorily closed, and that there will be no difficulty for the packer, and no spoilage of product. This has been perfected so well that it is exceedingly rare that we have a complaint on spoilage even though the closures and glass are generally made by different manufacturers. Through this Committee, closures and finishes on glass have also been tremendously improved.
The Industry, through the Association, is now working on the standardization of many types of containers. The purpose of this effort is to redesign many of our standard lines so that:
(1) They can be produced more efficiently and at lower cost.
(2) They will be more acceptable to consumers. We believe that better standard designs at lower cost will attract more consumers to purchase glass packed products.
(3) The standard containers can be produced on all types of equipment existing in the industry.
3. Labor Surveys.
The Association has made detailed labor surveys yearly showing hours of work, rates of pay and working conditions. These have been very helpful in assisting the industry to develop better labor standards, and to clean up any bad conditions that existed in the industry.
4. Statistics.
The Association has kept its members fully informed on factual data on production, shipments, capacity, and all other statistical information that will assist the individual manufacturer in operating his business intelligently.
5. Treasury Department Regulations.
The Association has cooperated with the Alcohol Tax unit of the Treasury Department in developing and policing regulations governing the marking of liquor bottles. This cooperation has meant that the regulations have worked smoothly, and without a single violation on the part of the glass manufacturers.
6. Technical Research on Glass Packed Products.
The Association carried practically all of the technical packaging research until this work was taken over by members of the industry. This work was primarily the development of commercial packing in glass. It involved the development of equipment, and the development of process for packing many of our food products. Since 1931 this work has largely been taken over by members of the industry, though the Association continues to supervise special projects given to commercial laboratories on particular products which we believe can be satisfactorily packed in glass, or on which we believe the method of packing can be improved.
7. Industry Technical Research
Through the Association, the industry has developed a standard method for the testing of commercial glass. This has involved the improvement and the development of equipment, as well as the perfection of testing methods. This testing procedure enables all glass manufacturers to test containers on a uniform basis, and to be sure that all glass going to market is of good commercial quality. We believe that it will also have the effect of improving production methods, and will elevate the standards of commercial glassware.
8. Advertising and Trade Promotion.
Through the Association, the industry has carried on an extensive advertising and promotion program. This has no doubt had the effect of increasing the use of glass packed products, and of encouraging many packers to adopt the glass container as a package. This work has involved not only advertising, but extensive market research. It also involves a glass kitchen which the industry sponsors to develop new foods, and new combinations of foods packed in glass.
9. Tariff.
The Association has represented the industry on all matters concerning tariff. This has included information supplied to the Appraiser's Stores, witnesses for the Tariff Court, facts for the Tariff Commission and presentation of information to the Committee negotiating reciprocal agreements.
10. Lawsuits Involving Broken Bottles.
A very considerable racket has grownup in claims involving broken bottles. Upon investigation it was found that probably 95 per cent of these cases were fraudulent. The Association, through legal counsel and through technical experts, has been able to clean up the greater part of this racket. On legitimate cases the Association, through counsel and experts, has advised satisfactory settlement.
11. Costs.
The Association, after consultation with cost experts in the industry, has developed methods of cost finding which are probably the best available. These methods have been offered to the industry for voluntary acceptance.
**12. The Association has represented the industry on matters concerning laws or regulations either municipal, state or federal. For illustration, State Departments on Weights and Measures, Federal Pure Food and Drug Act, Wage and Hour Bill, National Recovery Administration, etc. The Association has also kept the members informed on the operation of these regulations and laws, and to the best of our ability have advised the industry on proper conduct under them.
