the single proprietor establishes and conducts a manufacturing or mechanical business on his individual responsibility, contributing the required capital, owning or renting the land and buildings utilized, and employing wage earners or doing all the work himself. It is the most natural and the most primitive form of business organization; but notwithstanding the large proportion of establishments in which it appears still to predominate, its relative unimportance is shown by the fact that this great number of establishments produced only $2,674,497,008, or 20.6 per cent of the total value of products returned, being an average of $7176 to each establishment. Of the 372,703 establishments embraced in this group, 183,523, or nearly half, were establishments engaged in the hand trades.

2. Partnership. The second form of organization represented in the table is the firm or partnership, in which two or more persons divide the work of business management and jointly assume the risks. The members of the firm, or the partners, divide profits or losses in certain proportions agreed upon, or in accordance with relative investments of capital, and are jointly and severally liable for all the debts of the firm or partnership to the full extent of their resources. Under this form of organization there were 96,715 establishments reported, or 18.9 per cent of the total. Their products were valued at $2,565,360,839, or 19.7 per cent of the total. Although there were no statistics collected in 1890 with which to compare the totals above shown, it is clear that the relative importance of this form of organization in the conduct of manufacturing enterprises is rapidly diminishing.

3. The corporation. The third form of organization represented in the table is the modern business corporation. This is a joint-stock company, with capital divided into shares, which are transferable at the option of individual shareholders. These corporations either obtain a charter by special act of a state legislature or become incorporated under general corporation acts. Many of the earlier joint-stock companies, however, were not incorporated, and were therefore merely a form of partnership.

The important and predominating position of the corporation in American manufactures at the present time is revealed by

the statistics. While only 40,743 of the 512,254 establishments reporting were organized into corporations, they nevertheless produced $7,733,582,531, or 59.5 per cent of the total gross value of products. The facilities offered by the laws of several states for the establishment of business corporations, and the advantages of conducting business under this method of organization, are largely responsible for the rapid development of our manufacturing industries. The corporate form of organization permits the gathering together of capital beyond the resources of the private individual, distributes it among many holders where this is desired, and limits the liability of each holder to the amount of money actually invested in the stock of the company. Thus these organizations comprise nearly all the great manufacturing enterprises of the country.

An examination of the accompanying tables will furnish statistical proof of this statement. The four great industries producing articles of food, textiles, iron and steel, and lumber are largely controlled by corporate capital, and the same may be said concerning the lesser manufacturing industries. The hand trades are, however, still chiefly carried on by the single proprietor. Although these latter, in their nature, are outside the necessity of large capitalization, it was found that out of a total of 215,814 hand-trade establishments, 2691, with an average annual production of $37,401, were operated under some corporate form, as a matter of convenience or business prudence. The wholesale slaughtering and meat-packing industry is now carried on almost wholly by large incorporated establishments. This has been due to the trade necessity of centralizing slaughtering at a few points convenient both to a large supply and to transportation facilities for quick delivery to the principal distributing markets in the United States and in foreign countries, and to the advantage of locating and supporting agencies in these markets.

About 89.9 per cent of the value of cotton-mill products is made by incorporated establishments. These constitute 72.8 per cent of the total number engaged in the industry. Very few cotton mills are now carried on without a charter of incorporation.

The same form of organization appears in the manufacture of worsted goods, and to a less extent in the manufacture of woolen goods. The manufacture of worsted goods is carried on with a more expensive equipment than is necessary in the case of woolen goods. The latter industry is more suitable for the employment of small capital under individual attention. In the silk-manufacturing industry 27.3 per cent of the establishments was owned by individuals, 31.9 per cent by firms or partnerships, and 40.8 per cent by incorporated companies. Very much the same conditions exist in the hosiery and knitgoods business, 38.3 per cent of the mills being owned by individuals in 1900, and 27.4 per cent by firms or partnerships.

In the iron and steel industry in 1900 the value of the products of all kinds amounted to $1,793,490,908, of which $1,508,493,141, or 84.1 per cent, was the value of the products of incorporated companies, made by 4843 establishments, or 34.9 per cent of the total number. Of the 13,896 establishments in the industry, 668, classified as "iron and steel," produced 44.8 per cent of the total products; 586 of these, or 87.7 per cent, were incorporated, and produced 93.6 per cent of the total for that branch of the industry. This latter fact shows that the manufacture of iron and steel has reached proportions beyond the control of individual and partnership ownership.

In the lumber industry in 1900 over one half of the value of products was made in individual and partnership establishments. This applies quite generally to the industry in all its branches, for it has not yet attained a development which makes incorporation a matter of paramount importance.

The leather industry, including the manufacture of boots and shoes, has also remained largely under private ownership. Of the 16,989 establishments existing in 1900, 12,906 were owned by individuals. The nature of the industry still permits of this, although it is rapidly changing, the industry assuming larger proportions which require the employment of accumulated capital under a single and delegated management. The saddlery and harness branch of this industry is distributed among many individual establishments, which furnish over half of the

value of its production. Of the 16,989 establishments in the leather industry as a whole, 12,934 were engaged in the manufacture of saddlery and harness.

The manufacture of paper and wood pulp was chiefly carried on in 1900 by 484 corporations, which furnished products valued at $105,378,995, out of a total produced by 763 establishments and valued at $127,326,162. Of the 15,305 establishments engaged in the printing and publishing of newspapers and periodicals in 1900, 9759 were owned by individuals, 2994 by partnerships, and 2378 by corporations. These latter furnished 58.1 per cent of the total value of products.

In the liquor and beverage industry 71.7 per cent of the value of products reported in 1900 was reported by corporations. This applied very generally to all branches of the industry except bottling and the mineral and soda-water manufacture. In these individual ownership was the most important form of organization. The manufacture of malt and distilled liquors was under the control of corporations to the extent of 79.9 per cent of its value of products.

The chemical industry, in its various branches, was largely capitalized in 1900 under some form of corporation, 81.4 per cent of the total value of its products being reported by corporations. This form of organization was common in the refining of petroleum and in the manufacture of cotton-seed-oil fertilizers, explosives, paints, and chemicals proper. The manufacture of perfumery, cosmetics, and patent medicines was still very largely carried on by individuals and firms. These branches included 42.1 per cent of the total number of establishments engaged in the chemical industry.

The clay, glass, and stone industries are largely under individual and firm ownership. This is particularly true of the brick and tile manufacture, and such trades as china decorating, glass cutting, staining, and ornamenting, marble and stone work, and the making of monuments and tombstones. Nearly all the glass made in 1900 was produced by corporations, and, to a less extent, the same is true of the manufacture of pottery, terra cotta, and fire-clay products, as well as lime and cement products.