This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research

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1 This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Merger Movements in American Industry, Volume Author/Editor: Ralph L. Nelson Volume Publisher: Princeton University Press Volume ISBN: Volume URL: Publication Date: 1959 Chapter Title: Appendix C: Tables Underlying Material Presented in the Text Chapter Author: Ralph L. Nelson Chapter URL: Chapter pages in book: (p )

2 Appendix C Tables Underlying Material Presented in the Text TABLE C-i 100 Largest Manufacturing Corporations, 1955, Ranked by Asset Size and with Date of Most Important Merger, if Mergers Were Important in the Company's History Rank Name of Company Date 1 Standard Oil (N.J.) Pre-1895 General Motors 1908 U.S. Steel 1901 DuPont (E.I.) de Nemours Ford Motor None 6 Socony Mobiloil Pre Standard Oil (md.) Pre Gulf Oil None 9 Texas Company None 10 Bethlehem Steel Standard Oil (Calif.) Pre General Electric Union Carbide & Carbon Chrysler Westinghouse. Electric None 16 Western Electric None 17 Sinclair Oil None 18 Shell Oil None 19 Phillips Petroleum None 0 Cities Service None 1 International Harvester 190 Aluminum Co. of America None Anaconda 1899 American Tobacco Kennecott Copper None 6 Goodyear Tire & Rubber None 7 Republic Steel Ailed Chemical & Dye International Telephone & Telegraph Dow Chemical None 1 Radio Corp. of America Jones & Laughlin Steel None Firestone Tire & Rubber None International Business Machines Olin Mathieson Chemical International Paper Reynolds (RJ.) Tobacco Atlantic Refining Pre Eastman Kodak National Steel U.S. Rubber 189 Youngstown Sheet & Tube 19 Armco Steel None 15

3 APPEXDIX C TABLE C-i, continued Rank J'Iame of Company Date Monsanto Chemical None 5 Union Oil Swift Sun Oil None 8 Pittsburgh Plate Glass American Cyanamid Inland Steel None 51 Burlington Industries Goodrich (B.F.) Proctor & Gamble Continental Oil None Pre Reynolds Metals None 56 Tidewater Oil Sunray Mid-Continent Oil American Can Armour None 60 National Dairy Products Sperry Rand Liggett & Myers Tobacco Pure Oil Deere Allis-Chalmers Manufacturing Singer Manufacturing Phelps Dodge None 68 Crown Zellerbach American Smelting & Refining Grace (W. R.) National Distillers Products Seagram (Joseph E.) & Sons None 7 Continental Can Schenley Industries None 75 Weyerhaeuser Timber None 76 General Foods Kaiser Aluminum & Chemical None 78 Ohio Oil Pre Borg-Warner National Lead Caterpillar Tractor Standard Oil (Ohio) Pre Celanese None 8 Skelly Oil None 85 Borden Richfield Oil None 87 Lockheed Aircraft None 88 General Dynamics Stevens (J. P.) None 90 Douglas Aircraft None 91 Owens-Illinois Glass United Aircraft Wheeling Steel Bendix Aviation 199 (concluded on next page) 155

4 APPENDIX C TABLE C-i, concluded Rank Name of Company Data 95 American Viscose None 96 Kaiser Steel None 97 Campbell Soup Philip Morris None 99 North American Aviation None 100 American Motors 195 Sources: The Fortune Magazine Directory of 500 Largest U.S. Industrial Corporations, July 1956; data compiled in present study; basic data sheets for Fred J. Weston, The Role of Mergers in the Growth of Large Firms, University of California Press, 195; Gertrude G. Schroeder, The Growth of Major Steel Companies, , Johns Hopkins Press, 195; A. D. H. Kaplan, Big Enterprise in a Competitive System, Brookings, 195; Moody's Manuals, 199, 199, and TABLE C- Annual Rates of Production Growth for Forty-Four Production Series Relevant to the Industries of Highest Merger Activity by Decades, Indust,y and Production Series Central re ar of Decade Food and Kindred Products: Cocoa imports Coffee imports Distilled spirits Fermented liquors Raw sugar consuxnption Flour Canned corn Canned tomatoes Tobacco Products: Tobacco and snuff Cigarettes Cigars Tobacco consumption Chemicals and Allied Products: Superphosphate White lead Phosphate rock Stone, Clay, and Glass Products: Fluorspar Roofing slate Cement, total Gypsum Portland cement

5 APPEXDIX C TABLE C-, concluded Industry and Production Series Centroi Year of Decad Iron and Steel Mills, Foundries, and Mines: Tin plate consumption Iron ore Pig iron Rails Steel Rolled iron and steel Transportation Equipment: Vessels Locomotives Nonferrous Smelting, Refining, Mills, Foundries, and Mines: Copper Ore Gold ore Lead, domestic Silver Zinc Lead consumption Lead, total Tin imports Zinc consumption Gold consumption Silver consumption Aluminum Copper consumption Bituminous Coal 5. Mining: Bituminous coal Coal, total Coke Source: A. F. Burns. Production Trends in The United States Since 1870, National Bureau of Economic Research, 19, pp

6 APPEXDIX C TABLE C- Merger Activity Classified by the Importance of Transportation Costs in the Delivered Price of the Product, Code Market Size: Durability: Stage of Fabrication: L Local N Nondurable S Semifinished R Regional S Semidurable F Finished N National D Durable Net Firm Co,uoli- All dations Market Dura- Fabri- Industrj mergers on!, size bility cation Products with Local Markets: Crushed and broken stone (1) 6 6 Cement (1) 8 8 R D S Dimension stone (11) 1 1 R D F Sand and gravel (1) Bakery products (05) 8 7 L N F Bottled soft drinks (081) 7 7 L N F Malt liquors (08) R N F Printing, publishing (7) 6 5 L N N S F Bricks (51) 9 8 R D F Ice, natural and manufactured Products with National Markets and Low Transportation Costs Relative to Price: Confectionery and related products (7) 7 1 N N F Wines(08) 8 8 N N F Distilled liquors (085) N N F Tobacco products (1) 1 50 N N F Apparel () 1 0 N S F Industrial organic chemicals, mainly explosives (8) 8 N N F Paints, varnishes, lacquers, etc. (85) N N F Rubber products (0) 15 1 N S F Sandpaper (91) 8 7 N D F Metal products () R N D F Machinery (except 6) (5) 1 11 N D F Electrical machinery, etc. (6) 5 0 N D F Transportation equipment (7) N D F Instruments (8) 16 N D F

7 C TABLE C-, concluded Xet Firm Industry All mergers Market sise Con-solidations only Durability Fabrication Products with National Markets and High Transport Costs Relative to Price: Metal mining (10) 5 7 Bituminous coal mining (1) 05 7 R N S F Petroleum and gas extraction (1) 9 7 Meat products (01) 1 N N F Grain mill products (0) 68 6 N N S Sugar (06) 0 15 N N S F Malt (08) 8 6 N N S Lumber () 6 N D S Furniture, fixtures (5) 6 6 N D F Paper and allied products (6) N N F Fertilizers (87) 6 R N F Petroleum products (9) N N F Flat glass (11) 65 6 N D F Clay sewer pipe (5) R D F Clay refractories (55) R D F Gypsum products (7) 9 9 N D F Asbestos products (9) 0 N D F Blast furnaces, steel works, rolling mills (1) 11 6 N D S Iron and steel foundries () 79 7 R D S Nonferrous smelting, refining, rolling mills and foundries ( 6) N D S Tin cans (1) N S F. 1,57 1,58 Non-allocable: Ordnance (19) 1 Dairy products (0) 7 L N N F Canning and preserving fruits, vegetables and sea foods (0) 79 7 N N F Textiles () 78 7 N S S Chemicals and allied products not otherwise allocated (86, 88, 89) Leather and products (1) N S S F Glassware () 1 1 N D F Miscellaneous and not otherwise classified Sources: data from worksheets and from Appendix B; classifications of products characteristics from The Structure of American Industry, National Resources Committee, Washington, D.C., 199, Part I, Appendix 8, pp

8 APPEXDJX C TABLE C- Measure5 of Relative Merger Activity and Geographical Concentration, Standard Ratio of Merger Capital to Total industry Capital Geographical Concentration industrial All Consolidations Three adjacent Classzfication mergers only leading states Index Ill., Mo., Kan Wis., Iowa, Iii Md., N.J., N.Y Minn., Ill., Wis N.Y., Pa., Ohio Mass., N.Y., Pa..80, Minn., Mich., Wis Pa., N.Y., Mass N.Y., Pa., Ohio Pa., Ohio., md N.Y., Pa., Ohio Ga., N.C., S.C Del., Pa Pa., N.Y., Mass Pa., md., Ohio Pa., md., Ohio N.Y., Pa., Ohio Ohio, md., Pa Ohio, Pa., Ky , Pa., Ohio, N.J Ill., Mo., Kan III., md., Ohio N.Y., Mass., Pa Ohio, Mich., md Pa., N.Y., N.J..8 Source: Worksheets of Appendix B, Census of Manufacturers, 1905, op. cit. 160

9 APPE.WDIX C TABLE C-5 Mergers Achieving Market Dominance, Percentage Xe: Firm (millions of of Market Company dollars) Controlled.5% 6.5%: Allis Chalmers American Felt American Shipbuilding American Stove American Writing Paper Asphalt Co. of America Computing Scale.5 50 Distilling Co. of America International Paper International Salt National Candy National Enameling & Stamping National Glass Royal Baking Powder Rubber Goods Manufacturing Standard Table Oil Cloth United Button.0 5 U.S. Cotton Duck U.S. Envelope U.S. Shipbuilding Virginia-Carolina Chemical % 8.5%: American Can American Car & Foundry American Fork & Hoe American Hide & Leather American Locomotive American Radiator American School Furniture American Sugar Refining California Fruit Canners Casein Co. of America Central Foundry Chicago Pneumatic Tool Federal Publishing General Chemical Harbison-Walker Refractories International Harvester International Steam Pump National Biscuit National Fireproofing 15.5 f55 National Novelty Otis Elevator Standard Sanitary Union Bag & Paper U.S. Gypsum U.S. Steel 170 1, (concluded on next page) 161

10 APPENDIX C TABLE C-5, concluded Company Net Firm Capitali cation (millions of dollars) Percentage of Market Controlled 8.5% and over: American Brake Shoe & Foundry.5 90 American Caramel American Chicle American Grass Twine American Linseed American Pneumatic Service American Seeding Machine American Smelting & Refining American Tobacco Diamond Match DuPont (E.I.) de Nemours General Electric & Westinghouse National Carbon Pullman Railway Steel Spring U.S. Bobbin & Shuttle.0 90 "Large": American Agricultural Chemical 0.0 American Sewer Pipe Borden Brewery Consolidations (1) Corn Products Refining 80.0 Ice Consolidations () International Nickel.0 International Silver National Lead United Shoe Machinery 0.0 Source: Disappearance and capitalizations data from worksheets; data on percentage of market controlled from John Moody, The Truth about the Trusts, Moody,

11 APPENDIX C TABLE C-6 Early Consolidations that Appeared in Subsequent Larger Mergers Consolidations later Entering Tear of Earlier Consolidations Number of Firms Acquired Capitalization (millions of dollars) U.S. Steel (1901): Shelby Steel Tube American Steel & Wire (Ill.) Federal Steel American Tin Plate American Steel & Wire (N.J.) American Steel Hoop National Steel National Tube American Bridge American Sheet Steel Distilling Co. of America (1899): Standard Distilling and Distributing Kentucky Distilleries & Warehouse Corn Products (190): Glucose Sugar Refining National Starch American Tobacco (190): Atlantic Snuff Continental Tobacco Union Tobacco Havana-Commercial Havana-American American Snuff American Cigar Westinghouse: Walker U.S. Cotton Duck (1901): Mount Vernon-Woodberry International Salt (1901); National Salt Source: Moody, The Truth About the Trusts. 16

12 APPENDIX C TABLE C-7 Quarterly Series of Firm by Merger, Industrial Stock Prices, and Industrial Production, Seasonally Industrial rear and Original adjusted Slack Production Quarter data data Prices (197 9= 100)

13 APPEXDIX C TABLE C-?, continued rear and Qjzarier Original data Seasonally adjusted data Stock Prices Industrial Production (197 9= 100) I

14 APPENDIX C TABLE C-7, continued Seasonally Industrial Tear and Original adjusted Stock Production Quarter data data Prices (197 9= 100)

15 APPENDIX C TABLE C-7, continued Seasonally Industrial Tear and Original adjusted Stock Prod uaion Quarter data data Prices

16 APPENDIX C TABLE C.7, continued Industrial Tear and Original adjusted Stock Production Quarter data data Prices (197 9= 100)

17 APPE.WDIX C TABLE C.7, concluded Tear and Q.uarter Original data Seasoriafly adjusted data Stock Price Industrial Prod uction (197 9= 100) Sources: Mergers: For the sources of the series on firm disappearances by merger see Chapter, Table, of this monograph. The merger turning points were dated by the business cycle staff of the National Bureau of Economic Research. The merger series was deseasonalized in the UNIVAC program, and the deseasonalized series was used in dating the turning points. Stock Prices: The quarterly index of stock prices from 1897 through 1955 was derived from the Dow-Jones monthly index of stock prices by taking the arithmetic mean of the three monthly indexes for a given quarter. The continuity of the index was broken in December 191, when the number of stocks was increased from 1 to 0. The two series were spliced as of this date, the pre-191 indexes being multiplied by the ratio (0.756) of the new to the old index for the period of overlap. The index for was derived from A. M. Mathews, "New York Bank Clearings and Stock Prices, ," Review of Economics and Statistics, October 196, p. 19, Chart 7. The data, seasonally adjusted. were obtained from the National Bureau's business cycle files. Industrial Production: The quarterly series of industrial production for the years was derived from the Babson monthly index of business activity by taking the aritnmetic mean of the three monthly indexes of a given quarter. This was spliced to the Federal Reserve Board Index, using the ratio (0.508) for the year 1919, to provide a continuous series from 1895 to The pre-1919 seasonally adjusted data were obtained from National Bureau's business cycle files. The Federal Reserve series, seasonally adjusted, was taken from the Federal Reserve Bulletin. 169