tation of independent lamps. Since the industry is practically controlled by licenses under patents owned by one American company British manufacturers are restrained from entering the American market. A war development is the manufacture by at least one British firm of small flashlight lamps not previously made in Great Britain. Holland.-Lamp production in Holland was estimated at 16,000,000 per annum before the war, and has increased largely since that time. Dutch lamps have enjoyed a reputation for quality, and the industry has been progressive. Important machinery for the extraction of argon for the gas-filled lamps was developed in Holland during the war, and the sale of the machinery to British manufacturers was made the basis of an agreement for the importation of a large number of Dutch lamps into England. One of the most important of the Dutch manufacturers has affiliations with one of the associated firms of England, and also with the American patentee. The Dutch lamp industry was greatly stimulated by the demand following the cutting off of the German trade. Dutch producers secured a large share of this business with Great Britain and other countries. Germany. The production of incandescent lamps in Germany before the war was estimated at 100,000,000 per annum.3 The German industry was well organized and controlled a wide market in Europe and South America. German manufacturers pooled their interests for obtaining a supply of bulbs and other parts of lamps. In 1919 production was estimated at 70,000,000 per annum. Export was said to have amounted to 50 per cent of the production in the pre-war period and to 25 per cent in 1919. It has recently been stated that negotiations were underway looking to the formation of a combination of the three principal German makers, the Allgemeine Electricitats Gesellschaft, the Siemens-Schuckert Works, and the Auer Works, under the name Osramwerke." France. Production in 1913 is estimated at 30,000,000 lamps, valued at $3,860,000. This is less than one-fifth of that of the United States in 1914. Exports and imports were about equal and amounted to approximately $450,000, or about two-thirds of the value of exports from the United States in the same year. During the first six months of 1920 exportation increased about 25 per cent over the rate during 1913, but imports increased by more than four times. It seems unlikely, therefore, that France will in the near future reach a position of great importance in international trade. Japan. Japanese production was recently estimated at 40,000,000 lamps per annum, valued at $3,860,000. This is less than one-fifth of that of the United States in 1914. There are six large establishments making standard lamps, and several more making flashlights. The largest concern is controlled by an American electrical firm, which also controls or has an interest in four other Japanese lamp works. Besides the American-controlled factories, there are several smaller works making standard lamps, at least one of which uses drawn-wire filaments. There are many small shops turning out small flashlight lamps; some of these are little more than household affairs. Report of the British Committee on Trusts, on the Electric Lamp Industry, Cd. No. 622, 1920. Estimate by director of the Siemens-Schuckert Works, U. S. Commerce Report, September 25, 1920. 5 Electrical World, November 29 and December, 1919. 6 French Ministry of Commerce, “L'Industrie Française," 1919, vol. 1, pt. 1, p. 472. One of these small makers estimated that there are 100 such small shops in the Tokyo district. In 1913 Japanese exports amounted to $1,250,000, more than one-third of those of the United States in the same year. A large number of Japanese lamps has been imported into this country, especially those of the miniature type, but some dissatisfaction has been found with them, owing to their inferior quality. The same complaint has also been made with regard to the Japanese lamps exported to China, with the exception of those of the American-controlled Tokyo Electric Co. Although quality is not so important in this type of lamp, many of them were said to be so inferior that they burned out in a few minutes. Japanese manufacturers have been making efforts to secure the large trade of Germany and Austria in this class of lamps. In view of the American interest in the larger part of the output of Japan, it is unlikely that there will be competition in American markets from this source. Spain.-Spanish production was estimated at 8,000,000 lamps in the year 1919. There are about 15 factories, mostly branches of French and German concerns, which are closely affiliated. The filament is usually imported and is bought in the United States. Importation has been decreasing as home production has increased, but there is no prospect of Spanish lamps becoming of competitive importance. IMPORTS. Imports in 1921 amounted to $430,569, of which carbon filament lamps accounted for more than half. Nearly all of the imports were from Japan, and as is evident from the low unit value of the lamps, about 3 cents each, consisted of miniature or decorative lamps. Up to 1917 Holland was the principal source of importation, but with the affiliation between American and Dutch interests, it is unlikely that there will be any large import from this source in the near future. At no time since 1913 has the import been more than a small percentage of domestic production. PRICES. The tungsten filament lamp, which is the form in almost universal use at the present time, was introduced about 1907. At that time prices, as is usual in the case of a new invention, were high, and with the development of the process of manufacture on a large scale, rapidly declined. In 1915, 1916, and 1917 prices were at their minimum, and at present (May, 1921) are from 15 to 48 per cent above the levels of those years, the greatest increases being in the small sizes used in household and other general lighting, and the smaller increases in the large sizes of 100 to 1,000 watts, which were, during the period of minimum prices, at an earlier stage of development, and hence of higher price. Lamps are sold by the manufacturers under contracts which specify a graded system of discounts from the list prices, depending upon the amount of the customers' yearly purchases, ranging from 10 per cent for purchases of $150 per year up to 40 per cent for purchases of $300,000 or more. In addition to these discounts, there are also minor discounts for cash and for regularity of reports. This does not, however, give the large 1 U. 8. Department of Commerce, Special Agent Series, No. 197. purchaser so great an opportunity for profit on resales as might appear, since the greater number of the sales of such large buyers are to agents operating on a smaller scale, who receive in many cases large discounts, which depend on their own volume of business. British prices have been considerably higher than those prevailing in America since 1912. British prices to the largest purchasers for resale have ranged from 90 to 180 per cent above corresponding prices to American agents. During the same period British prices to consumers without contract ranged from about 80 to 170 per cent above American prices. These price differences were least in 1919, and the British committee on trusts found that the profits of British manufacturers were much smaller at that time than they had been during the war period. NOTE.-England is the only country for which comparative prices are obtainable. TARIFF HISTORY. Electric incandescent lamps were first mentioned in the tariff act of 1913. Before that time they were classified as manufactures in chief value of glass, dutiable under the act of 1894 at 35 per cent and in 1897 and 1909, at 45 per cent. The act of 1913 provided specifically for incandescent lamps, and reduced the duty to 30 per cent. Imports are not classified before 1913. COMPETITIVE CONDITIONS. The outstanding feature of the competitive situation in the incandescent lamp industry is patent control. The patents cover the drawn-tungsten filament, which is in universal use, and prevent importation of such lamps except under license by the holders. Furthermore, foreign manufacturers are operating under these same patents, some of the larger ones being affiliated with American manufacturers, and have working agreements, under which the markets of the world are to a considerable extent, allocated among them. There is a very limited field open to competition in lamps having filaments of material other than tungsten, and this field is being narrowed by the development of more rugged types of tungsten lamps for service, in which the carbon lamps might be preferred on account of their lower cost. Another class of lamps in which there is some competition is that of miniature or decorative lamps, used largely for Christmas-tree lighting. In the case of these lamps, efficiency is not of so great importance as in the case of standard lamps. Several million of these lamps were imported during 1920, principally from Japan. Another consideration is the manufacture of decorative bulbs, which are largely hand decorated and in which labor is a factor of more importance. Many of the miniature lamps imported are of this class. A filament of alloy, not subject to the tungsten filament patents, has been developed in Germany and used for miniature lamps, and certain importers have been considering the possibilities of such lamps, but it is said that at present they can not compete in price with the domestic tungsten filament lamps. One importer states that dealers whom he approached offered to sell him. domestic lamps at prices lower than those he was able to quote. TARIFF CONSIDERATIONS. It is unlikely that the tariff will at present have any appreciable effect upon the standard lamp industry, owing to the complete patent control by American manufacturers. The only articles likely to be affected are carbon filament lamps, chiefly used for decorative purposes. These form a very small part of the industry, and may be said in most cases to be only inferior substitutes for tungsten filament lamps. The term electric bulb is sometimes incorrectly used to denote a complete incandescent lamp; such use is confined by the trade to the glass bulb alone, without filament, base, or other parts. STATISTICAL TABLES. DOMESTIC PRODUCTION. Sales of standard electric incandescent lamps in the United States. 1 The term standard lamps refers to the lamps used for general illumination, excluding miniature lamps. The following table will serve to show the increasing importance of the tungsten lamp, and its progress in displacing the carbon lamp in this country:1 Ratio of tungsten lamps sold to total sales of lamps. Report of lamp committee of the National Electric Light Association, forty-third aunual convention, p. 41. The figure for 1920 is added from data in the report at the forty-fourth convention. United States 1 Great Britain 2. Holland 2.. Japan 3 France 4 PRODUCTION IN PRINCIPAL FOREIGN COUNTRIES. 1 Report of sales by the lamp committee of the National Electric Light Association. 2 Report of the committee on trusts (British) on the electric-lamp industry. Recent estimate in Trade Supplement of the Times (London). This may include miniature lamps as well as standard lamps. "L'Industrie Française," French Ministry of Commerce, 1919, vol. 1, p. 472. |