ECCENTRIC OFFICIAL STATISTICS 8 1
Although the ascertainment of the profits of manufacturing is no part of the purpose of the census inquiry, and although the facts which can be pro- cured by an official examination must necessarily omit many items and circumstances which must be considered before the actual profits are disclosed, yet the omissions are now so much fewer than on any former occasion that we can certainly arrive at a nearer approximation of the truth regarding the margin of profit than ever before, as shown in the following statement :
EXPENSES AND PRODUCT.
Value of products, $267,981,724
Cost of material used, - $154,912,979
Wages, - 66,024,538
Salaries of officers and clerks, 3.464,734
Miscellaneous expenses, - 16,716,524 241,118,775
Remainder, $26,862,949
This remainder represents 7.59 per cent, of the capital excluding the value of hired property, but represents much more than the actual profits of manu- facturing. All capital expenditures, excepting rent and interest paid for cash used in business are excluded from the items entering into the cost of production ; ordinary repairs are included, but all renewals and expenditures on account of depreciation of machinery are omitted.
The cost of renewal takes a large percentage of nominal profits in a cotton- spinning mill. An allowance of 3 per cent, of the value of the buildings and machinery is a moderate one ; this would be a gross sum of $6,233,054 ; reduc- ing the $26,862,949 by this sum, the remainder will be $20,629,895 which is 5.83 per cent, of the reported capital.
The amount of capital reported as invested in this industry is stated as $354,020,843 exclusive of hired property, of which $230,993,567 represents the plant and $123,027,276 live assets. Miscellaneous expenses were given as follows :
Rent paid for tenancy, - - $ 488,735
Taxes, 2,689,632
Insurance, - - 1,213,322
Repairs of buildings and machinery, - 3,987,748 Interest paid on cash used in business, 4,098,435 Sundries not elsewhere reported, 4,238,652
We find it remarked : " Borrowed cash is included in the capital reported at the census of 1890, but it is impossible to state in which of the different items it is included, as the schedule of inquiry did not require such a state- ment. The amount can be estimated by computation based on the interest report under miscellaneous expenses."
