factory cost increased from $10.61 in 1914 to $18.63 in 1919. This increase is in practically the same ratio as the total cost, since the selling expense during the different years was practically uniform at between $0.60 and $0.71 per ton, as shown in column 7. Column 4 shows that the material charge varied from $6.13 in 1914 to $10.68 in 1919. The charge for material is the principal cost item entering into the total cost of ground barytes and amounted to between 55 and 65 per cent of the total factory cost. Column 5 shows the labor charges per ton of ground barytes, which decreased from $1.30 per ton in 1914 to $1.08 in 1916 and then increased to $2.47 per ton in 1919. Labor accounted for 8.5 to 13 per cent of the total cost. Column 6 shows that the overhead expense decreased from $3.18 in 1914 to $2.82 in 1916 and then increased to $5.48 in 1919. Overhead expense was 22 to 29 per cent of the total cost. was between 3 and 5.5 per cent of the total cost.

Selling expense

DETAIL OF COSTS OF GROUND BARYTES, BY COMPANIES.

TABLE 34.-Cost of manufacturing ground barytes, by companies, during 1914.

Table 34 shows the cost of manufacturing ground barytes by companies during 1914. Column 2 shows that the total weighted average cost as reported by four companies during 1914 was $11.21 per short ton. The total average cost was made up of the following charges: $6.13 per ton for material, or 54.7 per cent; $1.30 per ton for labor, or 11.6 per cent; $3.18 per ton overhead charges, or 28.4 per cent; and $0.60 per ton for selling expenses, or 5.3 per cent.

The total factory cost shown in column 3 is made up of the items material, labor, and overhead. The average factory cost of the four companies reporting was $10.61 per ton. Companies 1 and 2 were the only firms that reported selling expense (column 7). The weighted average of these two firms was taken as the average selling expense and substituted for companies 3 and 4 in arriving at the total cost in column 2 for these two firms.

TABLE 35.-Cost of manufacturing ground barytes, by companies, during 1916.

Table 35 shows the cost of manufacturing ground barytes by companies during 1916. Column 2 shows that the average cost of the four companies was $12.69. The average cost is made up of a charge of $8.08 for material, or 63.7 per cent; $1.08 for labor, or 8.5 per cent; $2.82 for overhead, or 22.2 per cent; and $0.71 for selling expenses, or 5.6 per cent. Column 3 shows that the total average factory cost was $11.98. The selling expenses as reported by companies 1 and 2 was $0.70 and $0.72 per ton, respectively. The weighted average of these two charges, or $0.71, was inserted as the selling expenses for companies 3 and 4, and was used in arriving at the total cost shown in column 2 for these two companies.

TABLE 36.-Cost of manufacturing ground barytes, by companies, during 1919.

Table 36 shows the cost of ground barytes during 1919 as reported by four companies. The total weighted average cost (column 2) was $19.25 per ton. This total cost was made up of the following charges: $10.68 per ton for material, or 55.5 per cent; $2.47 for labor, or 12.8 per cent; $5.48 for overhead, or 28.5 per cent, and $0.62 for selling expenses, or 3.2 per cent. The total factory cost, as shown in column 3, averaged $18.63 per ton. During 1919 all companies reported

separately a charge for selling expenses, with the exception of No. 3, which firm included selling under overhead. The weighted average of the three firms separately reporting a charge was inserted for company 3, and subtracted from that company's overhead as reported and from total cost shown in column 2 to obtain the total factory cost. The average selling expense of the three companies reporting was $0.62 per short ton.

TABLE 37.-Details of overhead charged to ground barytes, 1919.

The detail in which overhead charges for ground barytes were reported varied greatly. Therefore the total overhead is the only fair basis of comparison between companies. The overhead during 1919 as reported by the four companies manufacturing ground barytes is given in Table 37 in as much detail as was possible. Although not directly comparable by companies, the table shows the detail to which overhead was distributed. The total overhead as shown in column 2 varied between companies from $3.23 to $9.23 per short ton of ground barytes produced.

Column 3 shows the total of the items charged to works expense, which includes such items of cost as operating and miscellaneous supplies, repairs, coal or electric power, packages, and other general plant expense. Works expense is seen to be the largest overhead charge, and averaged $4.03 per short ton, or about 70 per cent of the total overhead. Column 4 shows fixed charges as reported by only two companies. This heading includes insurance, State and local taxes, and depreciation. Only one firm reported a charge for depreciation. Column 5 shows administration expense as reported by all companies. This heading includes salaries for factory superintendence and office expense and salaries. Administration expense averaged $0.50 per short ton, or about 10 per cent of the total overhead.

COSTS OF MANUFACTURING BARIUM CHEMICALS, 1919.

INTRODUCTORY.

Before discussing the costs of barium chemicals the Commission desires to point out the lack of adequate cost-finding methods found to be prevalent in the barium chemical industry. The Commission does not wish to convey the impression that all companies manufacturing barium chemicals do not keep accurate cost records, but a number of the firms engaged in this industry lack adequate methods of cost accounting, and the data obtained from the records of these companies are at best an approximation of the true cost. This condition may be accounted for by the fact that the industry was developed under stress of war conditions, with emphasis on output rather than on economy of operation and on accurate cost records. Now that the industry is approaching more stabilized conditions, more attention should be given to cost accounting by those firms which now have inadequate methods. The Commission emphasizes the fact that some of the manufacturers of barium chemicals have adequate cost systems, and had this condition uniformly prevailed the cost investigation would have been greatly facilitated. From the information available the Commission is able to present the following costs of barium chemicals, and believes that the costs given may be taken as representative of the industry.

COMPARISON OF COSTS OF BARIUM CHEMICALS.

TABLE 38.-Cost of manufacturing barium chemicals during 1919.

Table 38 shows the weighted average costs of four barium chemicals-barium carbonate, barium peroxide, barium chloride, and blanc fixe or precipitated barium sulphate. This table also shows the

total cost distributed to the three items-material, labor, and overhead. The Commission is unable to publish costs submitted on other barium chemicals without disclosing the costs of the one or two firms reporting. The barium chemicals for which costs are given are, however, the most important, and include all barium chemicals mentioned by name in the tariff act of 1913. The costs of these may be taken as representing conditions in the industry.

It has been necessary, because of the form in which costs were kept by the companies, to combine overhead and selling expenses. In all cases selling expense is included, with the exception of one firm manufacturing barium chloride. Depreciation on plant and equipment is included in overhead where reported. A charge for depreciation was reported by all manufacturers of barium peroxide; by three of the four manufacturers of barium chloride; and by one manufacturer of barium carbonate. No depreciation was reported by manufacturers of blanc fixe. Other discrepancies in cost items are discussed under the variation in costs by companies.

Table 38 shows that the total average cost for precipitated barium carbonate, as reported by three manufacturers, was $0.0316 per pound. This cost was made up of the following items: Material charge of $0.0167, or 52.9 per cent; labor charge of $0.0038, or 12 per cent; and overhead and selling expenses of $0.0111, or 35.1 per cent. This table shows a total average cost for barium peroxide of $0.197 per pound as reported by three companies. Of this total, $0.088, or 44.7 per cent, was due to material charges; $0.046, or 23.3 per cent to labor charge; and $0.063, or 32 per cent, to overhead and selling expenses. The total average cost of blanc fixe for three firms is shown as $0.0294 per pound. This total cost is made up of $0.0160 material charge, or 54.4 per cent; $0.0028 labor charge, or 9.5 per cent; and $0.0106 overhead and selling expenses, or 36.1 per cent. The total average cost of barium chloride for 1919 as reported by four manufacturers was $0.0539 per pound. This total was made up of material charge of $0.0218, or 40.5 per cent; labor charge of $0.0109, or 20.2 per cent; and overhead and selling expenses of $0.0212, or 39.3 per cent.

The barium chemicals in order of their cheapness of manufacture, as shown in Table 38, are blanc fixe, barium carbonate, barium chloride, and barium peroxide. This order would be expected from a knowledge of the process of manufacture. Blanc fixe and barium carbonate, whose costs vary by only 0.22 cent per pound, are made from comparatively cheap chemicals, are precipitated as insoluble compounds, and require but simple operations, such as filtration and drying before marketing. Barium chloride, although made from a cheap material-calcium chloride-is a soluble compound and requires considerable heat for evaporation of solutions. This