Xo. 6. 



DEPARTMENT OF .^GUICLETUKE. 



917 



From these the foUowiug comparative statemeul for the iwo 

 periods is derived: 



Average wages paid each wage earner 



Capital invested for eacli $1 of raw material manufactured, 



Cost of manufacturing $1 of raw material into finished products: 



Cost of raw material, 



Interest on capital corresponding, 



Wages, 



Miscellaneous expenses, 



Total cost 



Estimated value of products 



$1,560 



$1,543 



In general, that is, the stated cost of manufacture has increased 

 during the decade, about 4 per cent., while the estimated value of the 

 product has fallen between one and two per cent., the net profits 

 being 17.5 per cent, of the cost of production in 1890 and 11.9 per 

 cent, in 1900. 



This decrease in net jjrofit is due chiefly to increased cost of 

 production. A little more than one-fourth of the increase occurs in 

 the item of miscellaneous expenses, including insurance, interest, 

 taxes, etc.; almost an equal fraction of the increase is due to the 

 smaller earning efficiency of $1 spent in w-ages (including salaries), 

 despite the fact that the average wages paid to each earner is 7.5 

 per cent, less than in 1890. One-half of the whole increase is attrib- 

 utable, however, to the interest item on the stated capitalization, 

 which has increased almost thirty per cent, for each dollar's worth 

 of raw material used. 



This stated increase is distributed as follows, in terms of the 

 items for 1890: 



Per cent. 



Land, 28.2 



Buildings, 54 . 8 



Machinery and implements, 56.4 



Total plant, 49 . 1 



Cash and sundries, 49 . 7 



This increase of stated capitalization, proportionally so much 

 greater than the increase in the cost of raw materials and the value 

 of finished products, naturally raises a question as to how much of 

 the stated capital represents money invested'. This is at present a 

 question for stock buyers. It is sufficient to the consumer to know 

 that, as compared with 1890, he was in 1900 able to purchase more 



