~TEXAS BUSINESS REVIEW Bureau of Business Research The University of Texas Vol. XVIII, No. 4 May, 1944 A Monthly Summary of Economic and Business Conditions in TexB.l! By the Staff of the Bureau of Business Research, The University of Texas F. A. Buechel, Editor. c ~ 0 p A N D LIVESTOCK F...EPO~TING DISTRICTS 0 F TEXAS BUREAU Of BUSI NESS RES.EA RC H •THE UNIVERSITY OF TEXAS DISTRICT 1-HIGH PLAINS 1 • N·NORTH E RN S(CTION 1-s-sounf EftN SECTION DISTRICT 2-RED BEDS PLAINS DI STRICT 3-WESTERN CROSS TIMBERS DISTRICT 4·BLACK AND GRAND PRAIRIES DISTRICT 5-EAST TEXAS TIMBERED PLAINS DI STRICT 6·TRANS-PECOS DI STRICT 7·EDWARDS PLATEAU DISTRICT 8-SOUTHERN TEXAS PRAIRIES DI STRICT 9·COASTAL PRAIRIES DI STRICT I O·SOUTH TEXAS PLAINS IO·A-LOWER RIO GRANDE VALLEY Entered u eecond clue matter on May 7, 1928, at the poet office at .Au1tin, Teua, under Act of An.gust U. 1912 TEN CENTS PER COPY ONE DOLLAR PER YEAR TEXAS BUSINESS REVIEW • W E ~ G i1 T IN tll'I LOYll'.ENT · 251, r l T ... 0 l LS . ·2 S 7, Dtn. ... TMENT '!>TO P.,( SHES · I 07, Busin~s Review and Prospect War production for th~ United States during the first four'months of the current year amounted to approxi­mately $30 billion, larger than that for the corresponding period during any year since our entrance into the war. April . expenditures for war purposes of $7.4 billion were 5 per cent below those of the month before and slightly above those for April, 1943. Year-to-year com­parisons from now on are likely to show declining margins, if any gain at all, over a year ago; and it is expected that by the end of summer, if not before, monthly war costs' will have passed the peak and will have started on the decline. War production is being concentrated more and more upon aircraft and shipping, thus rapidly giving this country such preponderance of strength in these two fields as to justify the expectation of a speedy military decision once the full force of these factors is brought to bear, first in Europe and then in the Orient. Until the military collapse of the European end of th~ Axis occurs, the needs of war production both in the form of labor and materials will continue to have first claim on om: production capacity. Thus, while the military situation is being rendered more and more secure the postwar economic outlook is becoming increasingly uncertain, giving rise to a great diversity of opinion con­cerning probable business trends. Much of the current diversity of opinion regarding probable future economic trends in this country arises from the failure to distinguish between temporary and permanent factors. Thus, a prevailing idea now appears to he ·that prices and living costs are definitely under control. Even the Office of Price Administration appears to he undecided at this time whether its main function is to he that of preventing deflation or inflation. Price Administrator Bowles, 1].imself, though Qis job is the control of prices to prevent them from rising, has recently given expression to fears of postwar price deflation and apparently is giving increased attention to means .of com­hatting such a development. He advocates the release by the Government of "purchasing power into the markets through its expenditures," which is of course exactly what is happening now in the form of war ex­penditures. In v~ew of the violent dislocations which have occurred in our econQmic structure during the past three years as necessary consequences of t4e war program, it is to be expected that many and varied cross-currents will tend to obscure the main economic trend during the months and years of readjustment which lie ahead. Some of these cross-currents may continue long enough to give the appearance of permanence. For example, because of a temporary unbalance in the supply and demand for cer­tain poultry and meat products causing a relaxation in food controls, an impression seems to prevail that the food problem is no longer as critical as it was sometime ago. Actually, t4e food situation deserves more careful handling than at any time since our entrance into the war. Huge surpluses of grains and feed-stuffs of three years ago have largely disappeared and supplies of these products from now O.Q will depend on current pro­duction. In the meantime, because of the stimulus given livestock, poultry and dairy production through govern­ment price policies, th~ number of animal units requiring feed has greatly increased. The full effect of this situa­tion is yet to be felt. It could result in a greater shortage in the supplies of these products than has yet been ex­perienced. · Similarly, many eddies and cross-currents are to he ex­pected in the employment situation which will often tend to obscure the main stream of employment and pay rolls during the period of readjustment and post-war develop­ment. Here the most significant factor for progressive economic development will he a clt~ar and broad vision of the problem on the part of those holding strategic positions in government, labor organizations, and busi­ness management. The instrument for creating the neces­sary conditions for such a vision to come llito being and to thrive is a dynamic and vital educational program. TEXAS BUSINESS Industry and trade in Texas remained virtually un­changed be~ween March and April but w~re substantially above Apnl, 1943. The composi~ index for April is nearly 11 per cent above a year ago but it is a small fr~cti~n of o?Ie per cent below March. Factors showing gams m the mdex from Marc4 to April w~re the indexes of pa~ rolls and carloadings, while declines were regis­tered ID employment, runs of crude oil to stills, depart­ment store sales, and electric power consumption. All of the component indexes show an increase over April ~-' INDEXES OF BUSI ESS ACTIVITY I TEXAS (Average Month, 1930=100%) April, April, March, 1944 1943 1944 Employment 149.0 143.9 149.3 Pay Rolls 266.0 220.9 261.8 Miscellaneous Freight Carloadings (Southwest District) 120.3 127.7 111.2 Runs of Crude Oil to Stills ____ 249.1 189.2 263.7 Department Store Sales 190.1 183.6 204.6 Consumption of Electric Power__ 284.9 225.4 290.3 COMPOSITE I "DEX 202.0 182.4 202.2 The composite chart on the opposite page appears to indicate that a gradual stabilization of Texas industry and trade is taking place, but there is nothing as yet in the underlying statistical factors upon which ~e chart is based to suggest that a decline is about to begin. Post-war economic problems in Texas will i:ela~ largely to readjustments in industries producing aircraft, ships, and ordnance, and there is good ground for belief that expansion of peace-time industries to meet deferred demand for civilian goods will off set to a considerable extent, at least, the decline in the industries which have been set up to meet the war crisis. F ARM C ASH I NCOME Cash income from agriculture in Texas during April was w~ll above that of the preceding month but fell substantially below the figure for Ap;il, 1943. For th_e State as a whole cash income for Apnl totalled approx1· mately $69 million, compared with $54 million (revised) in March and $75 million during April, 1943. Aggregate farm cash income for the first four months was almost the same as the figure for the corresponding period a year ago-$244,936,000 and $245,080,000 for the first four months of 1944 and 1943 respectively. INDEX OF AGRICULTURAL CASH INCOME IN TEXAS Cumulative Cash Income in Thousands of Dallars Districts April, 1944 March• 1944 April, 1943 January-April, Inclusive 1944 1943 1-N ____ 193.5 137.3 503.3 $18,245 $37,527 1-S ____ 326.5 746.9 357.6 25,049 25,059 2 -------­158.6 3 ---­-------­195.2 4 --­-----­351.6 5 -------­--216.6 6 ----------­261.6 7 ---------­187.4 8 ---------­386.3 9 ----------­187.3 10 ----------­236.4 10-A ---~----620.4 .. 238.8 232.l 226.3 231.l 326.4 164.3 290.5 294.5 274.2 782.7 226.4 220.6 268.9 198.0 435.0 198.4 209.0 193.3 288.3 498.5 17,969 9,114 31,829 9,998 12,032 11,249 20,970 23,452 12,639 52,390 21,518 9,547 26,105 8,896 18,446 12,754 16,776 20,184 16,284 31,984 STATE __ 274.9 301.4 301.2 $244,936 $245,080 •Revised . The unfavorable comparison of cash income with that of last year was the result of the sharp decline in market· ings and the moderate decline in prices of cattle and calves. Part, at least, of the decline in marketings was the result of serious flood conditions in central and eastern Kansas and northern Oklahoma during the latter part of April. It is a distinctive characteristic of interstate cattle mark­etings from Texas in April that the bulk of the forward­ings are destined for summer pasturage in the Flint Hills of Kansas and the Osage Country of Oklahoma. This year, because of the flood conditions already mentioned, many of the cattle were delayed in transit and instead of reaching their destination on schedule in April did not arrive until early in May. It is expected, therefore, that the May figures on marketings, when they appear later, will reflect this situation in the form of relatively large marketings to these areas. According to press reports pasture conditions in the Kansas-Oklahoma region are excellent and the cattle are expected to gain more than the normal amount of weight during the current season. Forwardings of sheep during April were moderately above and shipments of hogs substantially above the corresponding month of last year. Prices of both sheep and hogs, however, were below those of a year ago and this fact partly offset the gains in marketings. Substantial gains in cash income were registered by fruits and vegetables, for which more than $18 million was received during April and of which more than SU dollars went to the Lower Rio Grande Valley. This compares with total receipts of about $12 million from fruits and vegetables during April last year, of which nearly $9 million was received in tbe Lower Rio Grande Valley. CROP REPORTING DISTRICTS In the January, February, March and April issues of the REVIEW a series of tables has appeared showing the trend of farm cash income in Texas from 1927 to 1943, inclusive, by sources, for the State as a whole and for a number of crop reporting districts. As space permits, similar data for the remaining crop reporting districts will be presented in future issues of the REVIEW. In passing, it might be stated that the statistical tabulations in question are summaries of a comprehensive statistical study of Texas by the writer, embracing prices, market· ings, and farm cash income now in manuscript form. In response to inquiries as to the countie!! embraced in the crop reporting districts of Texas, there is presented on the outer cover page of this issue of the REVIEW an outline county map of the State with the crop reporting districts delineated upon it. This chart will be of service not only in connection with the district figures already issued but for those which are to follow. F. A. BUECHEL. TEXAS BUSINESS REVIEW Subscription: One Dollar per Year. For club rates on five or more subscriptions Address: Bureau of Business Research, The University of Texas, Austin Economic Development In Texas . [Editor's Note: In this article Mr. Johnson p~ints 01.~t the dependence of basic industries on natural resourc~s in relation ~o Texas. In subsequent articles Mr. Johnson w1H elaborate m greater detail some of the topics he has suggested toward the end of his present article under the caption "Point of V~ew" e!fi· phasizing the growth possibilities of c.onsumer . goods md~stnes for which the chemical industry particularly is now laymg a foundation.] IN RELATION TO PHYSICAL CONDITIONS AND INSTITUTIONAL FACTORS Programs concerned with economic prob~e~_in Texas, and particularly with developmental possibilities of ~n economic nature in the State in the postwar years, will necessarily have to give undivided attention to certain fundamental considerations. Foremost among these fundamental items are the State's rich and varied natural resources which in conjunction with the conditions of the physi~al environment, con~titute the ma~erial foun~a­tion upon which the economic structure is necessarily built. How significant natural resources have become is apparent from even a brief consideration of the larger aspects of World War II; and the problems of c~ntrol of the essential natural resources of the world will be insistent ones in the post-war period. Neither wishful thinking, nor t4e highest achievements of technology, are able to create natural resources where they do not already exist in nature. The achievements of technology, to· gether with the scientific attainments ?pon which these achievements are based, are to be considered as attempts made in the unfolding of human intelligence to render available to mankind the vast variety of products deriv­able from natural resources. Considered as such, tech­nology at large is an institutional factor furthering the utilization of the world's supply of natural resources. The physical environment, although many of its features are evanescent from t4e standpoint of geologic time, is, however, a rather permanent thing in so far as human time is concerned. Another group of fundamental con­ditions embraces the setting of Texas not only in the national picture but also in the world-wide situation as concerns especially such outstanding economic activities as the petroleum industry and the newly developing chemical industries, as well as agriculture and the pulp and· paper industries. This is to say t4at in order to comprehend better the Texas situation, per se, as regards these basic industries, it is necessary to have a compara­tive view of them from a world-wide standpoint. Not only, for instance, must these basic industries be con· sidered in reference to the national market but also the international market as well, and this necessarily em­braces not only the all-important fields of regional indus· trial integration but also those of regional and industrial competition. It is hardly necessary to add that power-driven ma­chinery, modern methods of transportation and com­munication, the widespread applications of science, to­gether with the resulting territorial division of labor and the use of large amounts .of capital, have wrought within the past few decades a veritable revolution in tl}e utiliza­tion of natural resources the world over. No one will question that all of thesti factors are to be con­sidered in the interpretation of the economic growth of !exas. The. point of emphasis in this paper, howe~er, is th.at a bnef summary of economic growth in Texas, considered from the point of view of the comparative f~ctors of economic development concerned, may pro­vide a foundation for appreciating more fully the prob­lems that inevitably lie ahead. NATURAL RESOURCES AND NATURAL REGIONS Fortunately, a splendid endowment of diverse natural resources vital to the economy of tomorrow is one of the P.redominant characteristics of the Texas region. This nch natural endowment is the key factor-and, if con· sidered in a discriminating and scientific manner, it is a factor hardly susceptible of over-emphasis--to the future of Texas' economic and industrial development. Worthy of repetition is the statement that in the nature of the country lies the destiny of its people. One of the most essential, and at the same time per­ haps the most difficult of facts to get before those who are vitally concerned with the potentialities of the State and the material welfare of its citizenship is that of the breadth and variety of the physical scope of the Texas region itself. It is indeed a formidable enough under­ taking to obtain a clear picture of the vastness embodied in the extent of the surface features of Texas, including the variety of and diversity in the outcropping geologic materials which are characteristic of the various portions of the State, together with the topographic features that have developed on and in relation to these geologic materials, as well as the variety and diversity in the distribution and characteristics of the State's soil re­ sources, its natural vegetation and its surface waters. In addition to this, however, it is necessary to give careful consideration to the subsurface features--to the characteristics of the numerous sedimentary, that is, the bedded rock formations which predominantly make up the geologic sections of the different regions of the State; it is also necessary to give attention to the kinds and complexity of the structures present in these sedimentary sections the thick11:ess of which ranges, depending upon the section of State under consideration, from zero to perhaps as much as 25,000 to 30,000 feet, from the surface down to the old crystalline rocks of complex, complicated structure which comprise the geologic base· ment. The full significance of these geologic features is obvious from the simple fact that the huge oil and natural gas reserves of Texas, as well as its wealth in nonmetallic resources together with its underground water supplies, are all closely associated with subsurface materials and characteristics. Obviously, the scope of the State's economic activities is conditioned by the extent and diversity of its available natural resources. The size and diversity of Texas' agri· cultural and range livestock enterprises alone are suf­ ficient to give the State a prominent place in the nation's economy. The predominant position Texas has attained 6====================================================== in the oil and gas industries of the. Unite~. Sta~es is sufficient to give the State an outstandm~ pos1t1on m. t~e world picture of large oil producing reg10ns, and this is the case also as regards the oil and gas resources of Texas both as to the volume of proven reserves, as well as to' the relative and actual position these reser~es occupy in the national picture. .To th~ breadt~ of its agriculture and range livestock mdustnes and ~ts pre­ ponderance in oil and gas, Texas has added to its eco­ nomic enterprises a new and large and alread~ some­ what diversified chemical industry, all of which are represented by outstanding achievements in _the war pro­ gram. These chemical i~dustries, t.ogeth.er with othe_r new undertakings that are bemg, or which will be estabhsh.ed, give promise, to say the least, of bein~ an outsta.ndmg factor in the post-war period of industnal growth m the State. Summing up: Other than the wide extent of its area, three features pertaining to the scope of .Texas make the State stand out in any inclusive economic survey of the nation at large. These are: a) The State's striking diversity ~n rich natural re­ sources, mostly occurring on a magmficen.t scale: Th~se include its large areas of productive agncul~ural so~ls, widely distributed over the State; its forest regions, which although confined to East Texas, yossess a nat.ural capa.c­ ity to grow timber of good quality, both rap1d!y and m large amounts, as well as its widesprea~ grazmg la~ds which form the basis of the State's d1vers1fied range live­ stock industry. In addition to these are the large petroleum and natural gas resources and the overwhelm­ ing position the State's reserves of ~il and gas o;cupy in the national picture, together with the Sta~e s e~­ tensive and varied non-metallic resources other tn,l~ 011 and gas. Nor are mineral resources, such as 111~gnesrn~1, available from the waters of the Gulf of Mexico to J)C omitted from even a brief survey of the State's natural resources. b) The particularly wi~e range of cl!matic condi~ions which in combination w1lh the genetically associated large soil regions gives to the State ~gricult~ral.ly such varied farming regions as are mamfested 1~ its sub­tropical citrus producing areas of the Lower R~o Grande Valley, the broad extent of its several outstand1~g cotton growing regions, the widespread wheat producmg lands fn the northern portions of the State, as well as the even more widespread grain sorgh~ms .regions .. . Also asso­ciated with the prevailing ehmat~c cond~t10~s ?f the various natural re<>"ions of Texas 1s the d1stnbut10n as \\~ell as the chara~teristics of the natural vegetation, both of which are also closely tied in genetically with the distribution and characteristics of the Great Soil Groups displayed in a magnificent manner in Texas. The humid lands of East Texas are characterized by the display of diversified forest growth. The rest of the ~tate is characterized predominantly by grass lands of vanous types, although woodlands occupy certain edaphic areas __:__that is areas in which certain local environmental fea­tures predominate. Still another climatic feature consists of the generally open winters together with the sunshiny conditions that prevail over much of the State. c) The extensive coast line of the State along the west­ern por.tion of the Gulf of l\lexico brings to a large proport10n of Texas the distinctive economic advantages of low-cost water transportation, not only to markets along the Gulf Coast and the Atlantic Seaboard but also to foreign markets as well. INSTITUTIONAL FACTORS Another factor essential to laying out a comprehensive industrial program for Texas involves a careful and discriminating consideration of the more inclusive trends in current economic development, and of industry in particular, together with the actual developments wherein these forces react upon the Texas scene. The impinge­ment of these movements upon the Texas region illus. trates in an outstanding manner the dynamic aspects of modern economic development. Since the decade of the 1870's the economy of the United States as well as that of every other important country in the world has come to be more and more closely associated with, and in many cases very definite!y dependent upon, advances made in manufacturing industries. Since the decade of the 1870's the world has witnessed those grand shifts in the developme~t and production of its agriculture, its minerals, its manufactured products, together with the associated revolutionary movements in world trade, that have literally tramformed our entire economy from what it was a century ago. And in the light of the current situation, practically the whole ma· terial future of Texas depends upon the continued in­dustrial progress based upon the more intensiYe and wider utilization of its rich and Yaried natural resources. ECONOMIC DEVELOP:'\fEl\T IN TEXAS Texas economic development in the historical sense comprises a series of impacts of these greater economic movements corning to terms with the natural environ­ment in the State, or in the maj or natural regions of the State, as step by step the various groups of natural resources of Texas have come to be utilized. The peopling of Texas by the Anglo-Americans was part and parcel of the Westward Movement, characterized in particular by the spread of population across the vast expanses of the American continent, and \rhich is recog­nized as the dominant institutional force in American economic development of the 19th century. In its broader aspects, the Westward Movement was part and parcel of the opening up of the Continental Interiors of th e Mid-Latitudes-a world-wide movement and which therefore was not unique to the United States alone. The main phases of the Western Movement, how· ever, took place between the decade of the 1870's and World War I. By no means, however, should that phase of the Westward Movement which took place between the close of the Napoleonic Wars in Europe and the decade of the 1870's be minimized: the importance of this particular phase of the West\~'ard Movement lies in the fact that in this earlier period the larger picture of the pattern of internal commerce in the United States first came into being. The unfolding of the economic develop· rnent of the m~ajor reg10ns of \he United States-which in .time was to become on~ of the distinguishing features of American . economy-had begun. Thenceforth the Westward Movement comprised successive waves of migration of people and of industries seeking th~ op­portunities provided by rich natural resources of the new lands on the frontier which could be had almost for the asking. It is worthwhile from the standpoint of a wider per· spective to consider briefly the early phase of the West­ward Movement. For this purpose, the following quota­tion from Guy Stevens Callender, which was written in 1909, i,s appropriate: "To form a correct judgment of the influences which produced this movement, it is nece&Sary to understand the general character of our economic development during the period when it occurred. We will begin, therefore, with a brief sketch of that development during the first forty or fifty years of the nineteenth century. The most important event in our economic history during the period was the opening of the west. By the opening of the west I do not mP.an the early settlement of the region west of the mountains, which took place on a large scale during the thirty years after the Revolution. This in itself, as I shall attempt to show, had very little influence upon the economic life of the country. I refer rather to that improvement in the economic condition of the west which set in about the time of the second war with England, and which in a decade or two entirely changed the relation of that region to the rest of the country, lifting it for the first time into that important place in our economic life which it has until recently occupied. This event marks the shifting of the "enter of interest in our economic activity from the ocean and foreign commerce to the interior and internal commerce. It was the ending of the colonial period in our economic development, and the beginning of what has been the chief object of our_ economic activity ever since; namely, the application of capital to the settlement of the interior and the development of its natural resources. In order to appreciate the significance of this change to the movement we are studying, it will be necessary to trace its history in considerable detail." Considered as a phase of the opening up of the Con­tinental Interiors of the Middl~ Latitudes, the Westward Movement in the United States was a consequence of, in the sense that it was conditioned by, the rapid growth of the new manufacturing industry in W est·central Europe and Northeastern United States. It was, in brief, an outgrowth of forces set in motion by the Industrial Revolution of forces which after the middle of the 19th century were an outgrowth of the large use of mineral resources. The rise of great industrial regions not only provided the markets for the surplus foodstuffs and raw materials which these interior plains, because of their natural resources and physical environment, could readily supply in large amounts but it also provided the means of the new transportation on land and by sea, together with the machinery and mechanical equipment that were necessary to the economic conquest of these interior plains and to which at the same time these new lands were so admirably suited. Nor was the Westward Movement in this wider sense limited to the agricultural conquests of the new environ­ments of the vast grassland plains. The _rise of the oil industry to large proportions west of the Mississippi River after 1900, and the rapid growth of the oil and gas industries in Texas and the Gulf Southwest after World War I, together with the more recent industrial developments of a diversified nature in this large region are furt4er .manifestations of the economic conquest of the extensive areas of tl!e continental interior lands. As previously stated, this movement of the economic conquest of interior continental areas of the Middle Lati­tudes was n?t confined to the United States. Agricul­turally considered, the vast developments in Argentina and Australia belong in this category of economic devel­opment as does the agricultural expansion in wheat production particularly in Russia; and in Russia, the large-scale development of industry reflects still another aspect Qf this inclusive movement. The spread of peoples across Texas, particularly in the lat~er third of the 19th century, was, however, largely an agricultural movement and it was accompanied by the rise to a promim;mt position of cotton, livestock, and lumber production in the State. The rapid tempo of in­crease of these three types of production in Texas was the result, on the one hand, of shifts of production of these enterprises as each advanced zonewise across the United States westward and southwestward into new and extensive producing regions, and on the other hand, of the utilization of three great groups of Texas natural resources--soils, native grasses, and forests. It should be noted particularly that these groups of natural re­sources--soils, native grasses, and forests-----important as they were t:li.en, have assumed a greatly added importance since the earlier days of their utilization in Texas. The native grasses of the extensive plains of West and South Texas have supported the State's range livestock industry in the varied forms and stages through which it has passed since the middle of the 19th century to the present time. The rich soils of the Black Prairies, together with those equally fertile of the Black Earth type in the w~stern and southern plains of the State, are outstanding soil resources of Texas; and these extensive bodies of soil resources also are of a type which gives them a leading position in the soil picture, and therefore, in the agriculture of the nation at large. It is well to note at this place that with the further extension of the pulp and paper industry, together with associated industries, that the rapidly growing, diversi­fied forests of East Texas, important though they have been in the past, will certainly take on a greatly ac­centuated importance in the near future. It is coming to be recognized that these forests constitute one of the State's outstanding groups of natural resources. Further­more, with p_roper care these forests are permanent re­sources. The growth and spread of cotton and livestock and lumber production in tpe latter third of the 19th century in Texas was paralleled by the extension of railroads into and across the State, as well as by the concurrent growth of commercial centers in major regions of Texas. Prior to 1900 these products of the soil were pre-eminent in the economic life of Texas; in the main, the com­modities obtained therefrom were sold into distant markets. An outstanding problem of those times was how to get these products to the markets that lay far beyond the boundaries of the State. The romantic trail driving period of the years when the range cattle in­dustry was sweeping rapidly across the State is, of course one of the best known examples of the early day m~rketing of Texas' surplus ca.ttle production ..In brief, this period in Texas history, m the latter portion of the 19th century, was one dominated by the bulk pro· duction of a few raw materials which had to be disposed of mostly in markets outside the State. Such an economy is definitely a colonial economy,-an economy based on the production of raw materials and which. was expressly dependent upon outside, and usually. distant i;iarkets not only for its prosperity but even for its very existence. After the turn of the century, the economy of Texas began to change perceptibl~. The fir.st s~age o.f r.apid transformation in the State s economic life comcided, however, with the period of World War I and ii;i· mediately thereafter. As everyone knows, the rapid tempo of transformation of economic conditions in Texas after 1900, and particularly after World War I, was associated with the development of the Texas phase of the oil industry. This is now, of course, a commo_nplace observation; but it is also high time to reemphasize the fundamental position of oil in the State'~ economy, and even more so of the vital place Texas 011, and nat· ural gas as well, will occupy in the futu.re of the ?tate and of the nation also; for these are thmgs, espec.ially their tremendous potentialities, not fully appreciated even at the present time, and that in. spite of the fact that World War II will inevitably contmue to place greater burdens upon our natural resources, and especially upon our oil and gas resources than they have ever been sub· jected to at any time in the past. Still another set of facts may aid in visualizing be~ter these changes through which the State has passed ?urmg the last 40 years. Texas in 1900 ha.d a population of some 3 million people, and at that time more than 80 per cent of that population was rural; no city in Texas in 1900 had a population of as much as 60,000. Jn 1940 Texas had a population of 6,415.000, of which 3 503 000 or 54.6 per cent was classed as rural. A d~ad'e before, in 1930, the rural population had com· prised 59 per cent of the State total of 5,825,000. ParallelinO' these striking changes in the growth and distribution ~f the total population of Texas, together with the expansion of older industries and the rise of new ones, have come impressive changes in employment. The number of people engaged in agriculture in the State has increased greatly since 1890, but the propor· tion of this group in relation to the total number em­ployed in Texas has decreased: whereas the nur_nber .of those engaged in manuf?cturmg a~d mecha~ical m­dustry as well as in service occupations has mcreased both as to actual numbers so engaged and even more so as regards the proportion each of t~ese groups com­prises of the total number employed m the State. In 1900, Texas had 9,791 miles of railways, which in that year carried 22,380,000 tons of revenue freight. In 1939 the mileage had been increased to 17,101 and the annual volume of revenue freight to 66,930,000 tons. The peak year in amount of revenue freight was 1926 when the volume transported by rail was 95,765,000 tons. The decreased tonnage hauled by railroads since 1926 is due to the availability and use of other means of transport, sucl_i as pipelines and motor trucks. In 1900 Texas had practically no oil industry and the natural gas industry as such had not been dreamed of. As a matter of fact, the extensive pipeline system of Texas has been built mostly since World War I and the very large output of Texas oil did not come about until the late 1920's and the early 1930's. SINCE WoRLD wAR I Since World War I still other aspects belonging to the more inclusive movement of the economic development of the continental interiors have become increasingly important to Texas. Furthermore, it should be pointed out that continued development in the utilization of natural resources in the continental interiors is part and parcel of an expansion that has already transformed many features of the world's economy and that it is a movement which to date has by no means run its full course. Shortly after the turn of the century, following the discovery of the spectacular Lucas gusher at Spindletop, the Texas oil industry began its upward march toward the position of overwhelming importance which it now holds in the American oil industry. The growth, particularly since World War I, of the Texas phase of the American oil industry has supplied the factors which have virtually transformed the eco­nomic life of the State. This group of industries is concerned with the exploration for, and the production, transportation, and refining of oil. More recently still the production, long-distance transportation, and the ensuing wider distribution of Texas natural gas have grown into a highly important industry. Owing to the vast size of the State, to the large number of its varied and diverse geologic regions which possess suitable structures for oil accumulation, together with the wide range of its geologic strata and the great thickness of the sedimentary section ranging in age from the geologically oldest oil­bearing formations to the youngest, Texas has come to be by far the leading oil and natural gas producing State of the nation; and, furthermore, as regards reserves of both oil and gas, it may be reemphasized that Texas occupies an overwhelming position in the nation as re· gards both of these significant and vital mineral re· sources. Texas attained first place in natural gas pro· duction in 1927, and of oil production in 1928; since those years, the State's production of both of these es· sential commodities has steadily forged ahead. The leading pl ace Texas occupies in oil production is obviously a major factor in the growth to large pro· portions of the many enterprises in the State that are accessory to the oil business, such, for instance, as drill· ing, supply, and other forms of oil industry equipment concerns, together with numerous auxiliary enterprises. Texas, however, did not become one of the Big Three of the oil producing states immediately after the mo· mentous discovery of Spindletop. Although Texas oil production was stepped up considerably in the period of World War I and in the early 1920's, the really great expansion in the oil industry of the State has come since 1930. Both in volume o( oil production. to date aµid in the .amount of px:oven oil reserves, the Texas figures are amazingly large. Texas at the clo~ of 1943 had pro­·duced a toial of 8 billion 161 million barrels of oil­'which is 29 _per cenJ; of the total nation~l output. The almost spectacular increase in Texas oil activity in the last few years is refiected in the fact ~t 58 per cent of the total oil output of ihe State has been produced during the past 10 years. . As tQ proven oil reserves, as estimated by The Oil and Gas Journal,, J~uary 27, 1944, Texas had 11 billion -692 miilion barrels as of January 1, 1944-or 56. 7 per cent of the national total which was placed at 20 billion 746 million barrels. These facts reHect in an unmis­takable manner the preponderant position Texas occupies in, the American oil industry. In the early 1930's Texas attained first rank in petroleum refining, which is still the State's leading manufacturing enterprise. Oil refining, like oil pro­duction, had been of some local importance in TexjlS even prior to 1900, as at Corsicana. But for several ·years aftei:. the historic Lucas gusher came in at Spindle­top in 1901, the Texas oil refining industry remained local in proportions. Since around 1910, and particu­larly since the period of World War I, paralleling the rapid growth of the -national market for oil products, and of motor fuels in particular, oil x:efiniJig in Texas has steadily progressed to the proportions of a huge national industry; in the 1930's Texas petroleum refining attained first place in the country, even though normally large quantities of crude oil continue to be shipped out­side the State, to be refined elsewhere, particularly in refining centers along the upper Atlantic !:ieaboard. The movement towards the concentration of a considerable share of modern refilling capacity on tbe western Gulf Coast, which has access to Atlantic Seaboard markets by low-cost, tanker transportation, in conjuncti()n with the 'occurrence of large reserves of crude _oil in the State, bids fair to raise the rank of Texas in oil refining still higher. And, furthermore, in spite of substantial begin­nings. already in evidence, the large production _of a wide . range of chemicals from petroleum products and natural gas may be considered as .!!aving only b~n started in the :;tate. Also, the large t;xpansion of the oil refining in­dustry and recent readjustments therein have been factors of no small proportions in the development of markets for 1arge quantities of equipmel!t requiring high-grade speci~l steels, for sulphuric acid and various ()ther chem­icals, as well as for numerous other products such, for instance, as Fuller's earth. It is obvious tI!at tl!e grow­ing demand for these chemicals and auxiliary products is one of the factors which serves to increase the markets for goods made from Texas raw materials • . Petroleum refining has been for years the State's lead­ing line in manufacturing. Although volume figures as to the status of Texas oil refineries in the Government's 100-octane aviation program are not available, the State's position in this vast development is a very high one. A 1arge proportion of these refined products has always gone to market outside Texas. Petroleum refining in Te:us is a mass-production industry, manµfacturing com­modities under large-scale operations, largely for dis­tant markets. The conventional products of natural gas, however, are also important. Texas is by far the lead­ing producer of carbon black. The production of carbon black is currently being modified considerably owing to the requirements of this ~ntial substance in compound­ing rubber for tires from synthetic rubber. Near Amarjllo are located two helium producing plants. Helium is that ratl!~r strange non-hydroc~hon gas, ()f light Wtlight and noriinHammable, which occurs m relatively large amounts in the natural gas of the gigantic Panhandle field. It is found also in certain otner natural gas fields of the United States. Th~ United States is the only country in the world producing helium in quantity. The recent increase in 4elium production, which is now 25 times the pre-war output, is entirely under the control of the government, due to the use o( helium as !! strategic war. material. The government's. program for obtail!ing hydrogen by pyrolysis of natural gas fQr the synthesis of ammoiria as a strategic war material adds still another important new industry based upon the natural gas resources of Texas and the Southwest. Natural gas 4as long since become an important house­hold fuel; jt has attained first rank in Texas as an industrial fuel in power plants for the-generatio~ of elt;ctricity; and it is being more widely used as an in­dustrial fuel, not only in conventional ways, hut also for special purposes, such as heat treatment of metals. {\jatural gas is often referred to as the perfect fuel. Furt.!!ermore, it has been aptly observed that 4ad the wasted natural gas of Texas been properly conserved in the past, the amount of sue.I! fuel would be sufficient to support in Texas a good portion of the power-using industries of the Middl~ West. Nor can too much emphasis be placed on the fact that natural gas is particularly desirable as a fuel fQr certain outstanding indust:I:ies, such as the glass-making, the smelting of non­ferrous metals, heat treatment of metals, and for the manufacture of pottery 81'.!d ceramics. Besides its growing significance j.n natural gasoline productio~ and its increasing strategic importance in the manufacture of high-test aviation gasoline, th~ poten­ tialities of natur~l gas fractions as a source of hydro­ carbon raw materials for vastly extended developments in the chemic~l industry probably outweigh all other considerations, insofar as future industrial ~elopments having to do with natural gas are concerned. Moreover, the possibilities of producing gasoline from natural gas itself promise to be deserving of careful consideration. Because of the obvious significance of its ~ii and gas resources to the State, because these resources will be so vital in th~ future, and also because Texas oil and gas production and reserves bulk so overwhelmingly in the national picture of the oil industry that some mention should be made, even in a brief discussion of Texas eeonomic development, of the geologic aspects which condition the occurrence of these vital natural resources. And moie particularly, attention should be given to the comparative geologic features of Texas in order to pro­ vide in larger perspective the background for a fuller understanding and a more thorough comprehension of the magnitude of the oil and gas reserves of Texas. These aspects wili be considered in future articles. RECENT TRENDS Consequences of Geographic Dispersion of Industry In the processing and manufacturing of Texas raw materials, as has already been noted, three main his­torical stages are obvious; the earlier ones, of course, persist in modified and extended form, and thus overlap into the later stages. Proper recognition and full con­sideration of these various stag~s are of importance not only in interpreting the economic development of Texas itself, but also a knowledge of their characteristics is necessary in comprehending the setting of Texas develop­ment in the larger and more inclusive field of American economic development at large. These stages are briefly summarized in tl}e following resume: ( 1) Prior to 1900 practically all processing industries in Texas were local in scope and they were concerned to a somewhat limited extent with the working up of agri· cultural, range, and forest raw materials, for these were the only types of raw products available at the time, and the local markets for such processed products were small. (2) Since 1900, and more especially since World War I, coincident with the increased production of the wider diversification in agricultural production, which in part was the result of widened markets, these agricultural processing industries in general have not only expanded hut also they have been considerably widened to embrace numerous new industries. In this connection the recent and large development in pulp and paper production in the State should he mentioned. The past two decades, it may he noted, have brought into prominence, not only from a national view but from a world standpoint as well, the essential part that cellulose products (which include wood pulp) and vegetable oils play in modern economy. The South as a whole has not as yet sufficiently grasped the potentialities of, and therefore the range and diversity of the attendant problems associated with their further industrialization, which these groups of essential commodities unquestionably are destined to have in the post·war world. Quite definitely, Texas' timber resources in conjunction with the natural conditions prevailing in the forest regions of the State are such as to favor a considerable further expansion of pulp production and of the paper industry in East Texas. Since the period of World War I, Texas has witnessed its outstanding growth in petroleum and natural gas pro­duction, the expansion of its petroleum refining in· dustry, and more recently the establishing of production of chemicals from oil and its derivatives, the increase in the use of natural gas as an industrial fuel in the State, and the beginnings, at least, of tl:ie use of natural gas as an important chemical raw material. As is well known there has been in the past 15 years a greatly increased use of natural gas in Texas for both domestic purposes and as an industrial fuel. The availability of natural gas in adequate volume is an important industrial factor in the growth of the various smelting and metal-refining industries of the State, such as those at El Paso, as well as at Amarillo and Dumas in the Panhandle, Laredo, Corpus Christi, and of the tin smelter at Texas City. The availability of natural gas as an industrial fuel has been an item of marked economic importance in the recent development of tl).e pulp and paper industry in Texas, as well as in Louisiana and Arkansas. As a matter of fact, had natural gas not been available in adequate vo.lume, there is little likelihood that the pulp and paper mdustry would have developed anywhere in the Gulf Southwest to any considerable extent, and the same statement applies to glass-making establishments and to most of the smelting and refining of metals in Texas. What may be of even greater importance is the fact that the continued production and especially the future expansion of these industries in Texas is dependent upon continued adequate supplies of natural gas as industrial fuel. (3) Since the early 1930's, however, Texas has wit­nessed the growth on a broad scale of a new ty~ of industry, or rather of new groups of new industries in the State; these cannot fail to be of momentous sig· nificance to the economic life of Texas in decades to come. This new type of industry is already manifesting itself in various forms, but, in brief, these divergent phases are part and parcel of the developing chemical industry which somewhat silently, but none the less in­exorably, is entering into and at the same time trans­forming economic life everywhere. Under the aegis of a quickened industrial expansion that is nationwide, Texas has also witnessed extensive beginnings in the use of its non-metallic resources (other than oil and natural gas), of which the State has large reserves of such materials as limestone, clays, gypsum, sulphur, salt, potash, and others. Representative of one group of enterprises using non· metallics are the cement and gypsum industries, which undoubtedly will be of still greater importance in the future. Representative of another group using non­metallics are the heavy inorganic chemical industries, producing, besides sulphuric acid, a number of less im­portant products, and more recently the inauguration of the heavy alkali industry and the associated chlorine production in Texas which was begun with the establish· ment of the large plant of Southern Alkali Corporation at Corpus Christi. In this connection mention should be made also of the alkali and chlorine plant of Mattl).ieson Alkali Works at Lake Charles, Louisiana, which, was established about the same time as the one at Corpus Christi, and which has since been expanded with the result that its capital investment is now about four times that of the original plant. Also, there are the various plants of the Solvay Process Company and of the Ethyl Gasoline Corporation at Baton Rouge, Louisiana, where, in conjunction with the operations of the large refinery of Standard Oil of Louisiana, to whicl} an important group of plants engaged in the government rubber pro· gram have been added, the pattern for one of the out· standing integrated industrial centers of the South is evolving. As is well known there are a number of other enter· prises making use of non-metallics. The potash industry represents still another important achievement in making use of non-metallics; this industry has already attained a substantial development in the Carlsbad, New Mexico, district, to the extent that it is able to meet the national demands for this -essential commodity. These various enterprises ai:e important, not only because of the volume of their products, singly and in t4e aggregate, hut al~o ~n that they illustrate the wide diversity of the Texas regicm in manufacturing industries, together with the economic potentialities such a diversity reflects. In passing, it may be noted that in addition to the pqtentialities Texas possesses for further industrializa­tion, a continued increase in the diversity of manufactur­ing enterprises and the growth of large integrated in­dustrial centers in the State are necessarily problems of the first magnitude for careful consideration ~s regards the possibilities as well as the c4allenges of the post-war pei:iod. Examples of the rise of interrelated industry 'centers, wherein finished materials or by-products Qf one plant or unit becomes the raw materials of anoth.er plant or unit, that already are apparent in the State include the various Dow industries at Freeport, the various di­versified enterprises of th.e Houston Ship Channel and Texas City, the synthetic rubber group of industries at Port Neches, together with the modern oil-refining estab­lishments in the Beaumont-Port Arthur district. An­other center in which integrated industrial activity is being developed includes the Corpus Christi district with its heavy alkali and chlorine production, its modern oil refining enterprises, hutadiene production, electrolytic refining of zinc, together with the projected chemical utilization of natural gas hydrocarbons in that area. Still another integrated center, also with vast potentialities for further expansion is being developed around oil refining, natural gas utilization and synthetic rubber pro­duction in the Texas Panhandle. Industry integration as well as unit integration within a single industrial plant is particularly important in the synt4etic ·rubber program and in· the production of aviation gasoline as well. In the current operations of the Wood River, Illinois, refinery of Shell Oil Company, 14 different units in the one plant are engaged in supply­ing the components for the 100-octane gasoline produced in this refinery. This diversity in operation units en­ . ables this refinery to produce a very high percentage of 100-octane gasoline on the basis of the amount of crude used: Another striking example of industry integration is the case ()f Carbide and Chemicals Corporation-the chemical subsidiary of the Union Carbide and Carbon Corporation engaged in producing synthetic organic chemicals-whose plant at Texas City uses as raw ma­terials hydrocarbon refinery gases from the near-by refinery of Pan American Refining Corporation. To sum up: The wide r~nge of non-metallic resources in Texas, including of course the hydrocarbon resources of oil and gas, in conjunction with the ever-widening uses and growing demand for products made from these ma­terials, and supported ~y the extensive fuel supplies of the State, give assurance that t4e expanded utilization of these materials will become an important factor in Texas industrial growth in years to come. MORE RECENT INDUSTRIES Recently attaining the proportions of a large Texas industry ,tias been the development of metallic mag­nesium production through the application Qf electrolytic methods, using as raw materials the magnesium chloride content of the waters of the Gulf of Mexico. These op­ er~tio.ns h~v~ been expanded, and currently Texas dolo­ mite is bemg used as a source of magnesium produced electi:olytica!ly. · With. th.e growth of t}l.e war effort has come the in­ cr:as~ngly larger military deJlU!nds for t~luene,-f~r aviat10n gasoline, for ammonia, and even more spectac­ ular has. been the colossal challenge to produce synthetic rubber m adeq1:1~te amoun~s and of sufficient quality t() meet hot!i m1htary requuements and civilian needs. All of these c~mmod~ties ar~ now under producti0~-in the State, by I?dustnes using materials supplied very largely .from 011 ~nd .natural gas. Preli~inary to the product10n of synthetic rubber, however is the manu­ facture i? large ~mounts of both hutadie~e and -sty~ene, the two mtermediates out of which synthetic rubber of the GR-S type (formerly called Buna-S) is m~de. The progress already made in Texas within a period o_f less than a dec~de, as r~gards the l~ge-scale pr~duc­ hon of these essential cheII?cals reflects in a most striking manner what can he done m the transformation of Texas raw materials into the most vital and strategic products of the times. That important further developments are currently under way is evidenced by announcements re­ gardinl? the. coming to Texas of new plants and of expansions m the already established ones in the State Consideration of the post-war future of many of the~ recent ~evelopments a.nd operations is already an issue of considerable magmtude. Concerning the immediate future of these developments made possible by the war program, C. R. Wagner, who was then Chief of the Process Development Section, Refining Division Office of Petroleum Administrator for War, wrote in The Oil and Gas ]ounuil, March 25, 1943, as follows: "What­ever may he the economic value of the particular units now operated or installed to produce war material we can he certain that our industry is advancing in technical development as it never has before, and that we shall see a chemical industry of unprecedented size grow ·out of these di;;velopments. "The .technique that is making possible the large-scale production today of such products as isohutylene, hutene­1, hutene-2, butadiene, isoprene, and aci;;tylene will scarcely fail when peacetime i~dustry demands these and countless other organic chemicals as raw materials for the synthesis Qf products to fill needs of which we are today unaware." -· · Still anot4er problem concerning the future of these industries built upon hydrocarbons derived from oil and natural gas is that of the adequacy of the reserves ·of these raw materials. In this regard, it must he empha· sized that the problem of adequate reserves 0f oil and natural gas for hulk manufacture of the conventional products of the oil industry, such as gasoline, is one thing; that of adequacy of oil and gas hydrocarbons fQi: a potentially great m:ganic chemical industry is distinctly another sort o{ proposition. As to the adequacy of raw materials bases to support these revolutionary new industries, the following quota­tion from an article by K. S. Adams, President, Phillips Petroleum Company, in Chemical and Enginee'ring News of June 25, 1943 is appropriate: "Another example is the much discussed synthetic rubber. The volume of butadiene for Buna rubber which could be made from the butanes annually available would result in a volume of rubber approximately five times that consumed in normal times. Is it any wonder then that the petroleum industry looks forward with confidence to the Nation's current rubber problem? Raw materials are in abund­ance." Or, as John A. Tallant, Manager Technical Data Serv­ice, Hycar Chemical Company, has expressed it in an article in World Petroleum, August, 1943: "Out of the total volume of petroleum products produced in the United States, less than one-half of one per cent would be required to supply us with our rubber requirem~nts. However, there will be a continuing market for butadiene and other such raw materials after the war and these could well prove to be the foundation of a new petro­chemical branch of the oil industry, with considerable economic importance." WoRLD WAR II AND THE PoTENTALITIES oF THE NEW CHEMICAL INDUSTRY Everyone is now conscious of the fact that Wor!d ~ar II is demanding vast quantities of petroleum denvatives in ever increasing proportions. World War II is also demanding enormous amounts of chemicals-of chem­icals produced from no:i·metallic resou~ces,_ a?d even more so of chemicals which can be supplied m immense volume 'by the use of hydrocarbons available from the vast storehouses of our petroleum and natural gas re­serves. Also, large quantities of magnesium metal are being produced, for World War II 4as stressed in no uncertain terms the strategic importance as well as the economic significance of the light-weight metals. It may he said that the Texas phase of the American chemical industry was only well started by 1940. The wide variety of large chemical developments, which since 1941 have come to the State together with those scheduled to be located here, reflects in a striking manner the broad and substantial bases which the scope of Texas natural resources so magnificently afford. This secure founda­tion for a large chemical industry, including th~ estab­lishment already made, in conjunction with the wide range of the required natural resources present in large quantities in the State, and which obviously can support even greater developments in chemical lines than those now in the State, present the material bases upon which Texas industry in the post-war period can, and no doubt will rise to still higher levels of achievement. THE ALL-PERVADING CHEMICAL INDUSTRY Perhaps, in consideration of the breadth of chemical industry possibilities in Texas, a brief resume of tl;ie chemical industry itself will not be out of place. Un­questionably, of all industries, the chemical industry and the complex of problems associated with its further expansion, will be outstanding in the post-war years, not only in Texas but also in various other parts of the world. Besides being a huge industry in its own right, chem~stry permeates, usually to <'! considerable degree, practically every other industry on the face of the earth. With the continued progress of scientific discoveries and this p~ogress abviously is being drastically hastened by the exigences of war, one may predict with considerable assurance that in the post-war years, chemistry will attain to levels both as regards practical performance and scientific achievements which in a comparative sense will dwarf many truly great accomplishments of the past. In its historical perspective, the chemical industry as an organized enterprize had its beginnings in England during the first half of t4e 19th century, where it was predominantly an alkali industry. But a shift to the continent of Europe was in evidence shortly after the middle of the century and it was Germany that led in the development of chemical enterprises from the 1870'8 until World War I. Germany's great chemical industry was in the line of organic chemistry; it was built on the utilization of coal-tar by-products provided by its large coke-manufacturing -industry, an industry that grew up with the large expansion of the German iron and steel industry during the latter part of the 19th century. The outstanding group of chemicals made in Germany prior to World War I embraced the coal-tar dyes, and dyes may be considered as belonging in the category of fine chemi­cals. In this intensive type of rather highly specialized in· 1944 1943 1944Ul 1944<2> 1944 1943 MANUFACTURING All Manufacturing lndu&tries___J65,322 163,685 1.0 -0.4 5!541,659 5,479,975 1.1 + 12.6 Food Products 9,462 + 1.1 +20.7 325,243 325,582 + 0.1 +43.9 Baking ----------------9,360 Carbonated Beverages ------..3,515 3,434 2.3 -2.9 102,324 100,591 1.7 + 3.6 Confectionery 1,552 1,502 3.2 +24.4 21,303 20,733 2.7 +25.5 F1our Milling --------­ --2,344 2,377 2.9 + 3.9 70,302 68,765 2.2 +16.2 1,355 1,461 + 7.9 +13.4 37,091 38,724 + 4.4 +22.3 Ice Cream ----------------­Meat Packing ------------6,008 5,982 0.4 + 8.3 183,702 177,425 3.4 + 12.0 Textiles Cotton Textile Mills -------5,453 5,286 3.1 -22.1 121,333 118,676 2.2 -16.5 Men's Work Clothing ________ 4,509 4,332 3.9 -17.3 77,807 74,767 3.9 -7.5 Forest Products 1,547 1,155 -25.3 -33.4 39,489 30,454 -22.9 -13.6 Planing Mills 1,895 1,803 4.9 -11.6 54,728 51,464 6.0 4.2 Furniture ------------------­ Saw Mills _____ __.:__________ 14,912 14,568 2.3 -8.4 277,500 276,965 0.2 + 3.7 Paper Boxes ----------------789 766 3.0 -11.7 18,250 17,756 2.7 7.2 Printing and Publishing Commercial Printing _____ 2,496 2,465 1.2 3.3 89,329 85,326 4.5 + 9.0 Newspaper Publishing ---------3,992 3,966 0.7 6.8 112,664 111,885 0.7 5.5 Chemical Producu Cotton Oil Mills ---------3,244 2,930 9.6 + 2.0 51,455 47,579 7.5 +20.9 Petroleum Refining ---------24,098 24,331 + 1.0 + 9.8 1,380,066 1,389,512 + 0.7 +24.6 Stone and Clay Products Brick and Tile ---------1,753 1,701 2.9 3.1 30,595 29,133 4.8 + 3.7 Cement --------------907 889 1.9 -23.9 33,571 34,413 + 2.5 -23.0 Iron and Steel Products Structural and Ornamental Iron__ 2,351 2,393 + 1.8 -18.l 78,837 79,935 + 1.4 + 0.9 NONMANUFACTURING Crude Petroleum Production____ 26,800 27,031 + 0.9 + 5.0 1,416,119 1,473,986 + 4.1 +26.1 Quarrying ----····-----------------------(3) (3) 0.7 -12.8 (3) (3) + 1.8 + 3.0 Public Utilities ----------------(3) (3) + 0.1 + 4.4 (3) (3) + 1.6 + 14.8 Retail Trade ____________________203,834 208,456 + 2.3 3.3 4,694,113 4,740,444 + 1.0 + 6.7 Wholesale Trade -----------------62,551 61,934 1.0 + 2.8 2,375,857 2,378,106 + 0.1 + 14.3 Dyeing and Cleaning ----------------2,750 2,874 + 4.5 1.5 64,881 65,785 + 1.4 + 10.l Hotels .·-----------------------------·--------19,460 19,363 0.5 + 8.9 329,671 337,572 + 2.4 +26.9 Power Laundries ----------------------14,051 14,192 + 1.0 5.8 234,333 239,501 + 2.2 + 1.0 CHANGES IN EMPLOYMENT AND PAY. ROLLS IN SELECTED CITIES«> Employment Pay Rolls Employment Pay Rollo Percenta&:e Change ...Percentage Chane:e Percentage Chane:e Percentaa:e Chana:e Mar., 1944 Apr., 1943 Mar., 1944 Apr., 1943 Mar., 1944 Apr., 1943 Mar., 1944 Apr., 1943 to to to to to to to to Apr., 1944 Apr., 1944 Apr., 1944 Apr., 1944 Apr., 1944 Apr., 1944 Apr., 1944 Apr., 1944 Abilene + 4.8 2.2 + 6.1 + 16.8 Galveston _ 6.4 + 8.9 5.6 + 30.l Amarillo _________ 6.5 20.2 + 1.8 9.1 Houston + 0.2 0.9 + 4.1 + 16.3 Austin + 0.9 + 8.5 1.3 + 9.3 Port Arthur_ 0.6 + 3.2 + 2.0 + 14.1 Beaumont 0.6 7.8 + 3.2 + 2.1 San Antonio _ 0.7 1.5 1.7 + 7.2 Dallas ------------+ 0.7 + 34.7 + 3.3 + 70.0 Sherman_ ___ + 4.0 3.8 + 5.6 + 18.9 El Paso ____ ____ + 0.2 1.8 1.3 + 14.4 Waco + 1.1 + 4.9 + (5) + 8.6 Fort Worth 2.8 2.8 1.7 + 8.2 Wichita Falls_ + 0.6 16.9 5.6 0.2 STATE ___ 0.2 + 4.2 + 1.6 + 20.4 ESTIMATED NUMBER OF EMPLOYEES IN NONAGRICULTURAL BUSINESS AND GOVERNMENT ESTABLISHMENTs <•> 1942(1) 1943(1) 1944 1942(1) 1943 January -------------------1,170,000 1,385,000 1 429 000(2) July ----------1,317,000 ] 450 ooom February ------------------1,199,000 1,397,000 1:433:000<2> August ________ 1,352,000 l'.441:000<2> March ---------------------1,226,000 1,415,000 September ____ 1,373,000 1 448 000<2> October _______ 1,384,000 l '.455'.000(2) April ----------------------1,222,000 1,433,000 May ------------------1,251,000 1,458,000 November ________ 1,389,000 i'461 000'2' June -----------------1,291,000 1,478,000 December _______ 1,413,700 l '.410:000(2) •Doe1 not include proprietors, firm members, officers of corporations, or other principal executive•. Factory employment excludes also office, sales, technical and profe99ional personnel. (l>Revieed. Subject to revision. Not available. 1 ess than 1/10 of one per cent. Not including self-employed persons, casual workers, or domestic servants, and exclusive of military and maritime personnel. These figures are fumisbe