Commodity exports and imports of the State of Arizona
Item Type text; Thesis-Reproduction (electronic)
Authors Lovic-Johansen, Paul, 1922-
Publisher The University of Arizona.
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Link to Item http://hdl.handle.net/10150/553765 COMMODITY EXPORTS AND IMPORTS
OF THE STATE OF ARIZONA
by Paul Lovic-Johansen n
A T h e sis
submitted to the faculty of the
Department of Business Administration in partial fulfillm ent of the requirements for the degree of MASTER OF SCIENCE
in the Graduate College, University of Arizona
1949
A pproved: ’/& vd-li/osl si&p&d i z i z l a b k saorri/lT^’
TABLE OF CONTENTS
jj'i'.o:.-; Chapter Page I . INTRODUCTION ...... '. . . . 1
I I . MINING...... ____...... 10
I l l . AGRICULTURAL' PRODUCTS AND * LIVESTOCK 18
IV . FOREST PRODUCTS- ...... 31 V. MANUFACTURES AND MISCELLANEOUS .'.'.. 35 V I. TRADE TOTH MEXICO .....'...... 40
V II. CONCLUSION...... 45 bibliography .::.;.:;;;...;.... 48
2 8 6 5 3 0
)> 4
11 LIST OF TABLES
Number I . EXPORT OF MINERALS FROM ARIZONA ...... v...... 1 ?
I I . ARIZONA EXPORTS OF AGRICULTURAL CROPS AND LIVESTOCK ...... 25 I I I . ARIZONA EXPORTS OF AGRICULTURAL PRODUCTS AND LIVESTOCK, 1 9 4 8 , BY METHOD OF ; TRANSPORTATION...... 2? IV . ARIZONA PRODUCTION AND EXPORT OF AGRICULTURAL ^ PRODUCTS-AND LIVESTOCK, 1948 ...... 28
; Vv ARIZONA EXPORTS AND ‘IMPORTS OF AGRICULTURAL '• PRODUCTS AND LIVESTOCK, 1948 ...... 29 V I. ARIZONA IMPORTS AND EXPORTS OF FOREST : PRODUCTS, 1948 ...... 33
V I I . ' MAJOR EXPORTS OF;ARIZONA ...... 34 V I I I . :MAJOR IMPORTS OF ARIZONA ...... 38
IX . INTERSTATE AND FOREIGN COMMERCE OF ARIZONA . . 39 X. TRADE WITH MEXICO ...... 41
X I. ARIZONA EXPORTS AND IMPORTS, 1948 ...... 42
ill •v-'.' w-L ;
v, "/'.i t;h t\ c-c..-::; • ■ ■ ov .1 CHAPTER I i"/.v r uV;X'i: o v: ;• ^\ j . (- i <( : ... " X.J , , t-h :: ''i t-v; :u INTRODUCTION „ :
" ' ".ic rxr !■: ; lJ. :x\.' 1 •.'x: v.x-. ..--v.-v ix cr ' - The relatively high living standards of the United
States are due in no small degree to the vast extent of the ' ■ - _ ' 'r-' ; .L • * • ;• v j free trade area which the states constitute. Consumption "X: :XX : 1 :: i v r c f-U'j:'v- o.‘ 'cl::- VxiU-oc 3 tX' v 0 levels and volume of trade vary considerably among nations. i" 3: ,:x j'.i ; ..:rx -v. ,:jx 3 v •; v ' :L'x3:. .‘..li. v;..x.:- ;.?I x.c Countries which carry on a large volume of foreign and inter- ■: - ux. v V , • : 1 : . c : ' 1"* 3" ; ■ -xx-xhx;-. xxx-. regional trade usually can enjoy more comforts and luxuries. lo:.x : ::.o ucn or v..,-: i.; nx 1% r ^30 ; . r.; • l x . . 'x n l v The case of the United States stresses an important quali- X'U: : - f. 3 3.1:x p;i;.-.■•••: 3 ‘ m i rx • Luo c3u-o u v - u - floation to the general rule. Nations which are large ■3" ':X:3 , V'OL > - v x ;• ou llUX uo, geographically, as in the case of the United States, are i'ix'X.: L:uu;u; UTIO1.: L'-\u ' ^ . u L o u u. u lu;‘-vX„- able to practice intense geographical specialization with- U: t,X;. OOU.Ld :.UL LOol ' LI U TLi/CU,. ; CU-'LXO C:‘ UL1/ 3 ~ in their own boundaries. The economic basis for a ll trade s UL'i' L u ■ a .. v;- 3 - o.. ov l"..-... 3or 3 :'--o iuhu uu'it v<'Lo..d is specialization, whereby one group of people or a region to ■: • .u clI'oUjuU. ■ < ■ir-uarricL.ur.ct , u;.u then oi;. o'.- V. produces or has available a surplus of a certain product .LL-XVi 3 : - Loo- -li L:: o 'XLUiu, T:;-o ' xX:. r u • u.' (or products) but little or none of other products. This v.U'"o:;: OX'LL u .XULUO x..v ■•■•■ulv 0 o (.•■• 0 .L’ 0; . ^UO . . surplus is exchanged with other groups or regions having i ’ti. o l out :.o; uuo L . r .ULti-LUior ututoo or r^ o*,LUX. : ox;- a surplus of other products. ’"■-.xx, rrxuxixx;- :iovoxx-;r:> or r .. o uxo-or! i.ilor r;:ur lx c,xo. ’ Boundaries have no commercial or financial importance :Lx'r :l UTvX.: ; X XUX. O U 3:^x...0L LX.: X 5.110 l .XI: OX”XL 'lot XL in themselves, but are only material to economic life ■ - u,-;Xl; l i-uo 5.x t t u : :xox or o - '-'oj - " u *,■ x ix x . ci' tho because of governmental regulations. The United States i x : o xi 3c , u lo x .oL.ro - . comprise a huge free market for goods and services produced T 'x x x x o -x .x , X.--. ; - xx: - o.-x'-xX' 3. 3 x o r x : : - 5:0;= in the country. Restrictions on the flow of interstate 2 commerce are aimed at illegal and detrimental trad® pr#e^ tloes , rather thin creating trade barriers among- the states; ' With a oohsidejpable degree of accuracy it can be said, i"or the purpose of this discussion; that the Dhlted
States’ constitut e'rah economically free trade area. It should be kept in mind,"however, that restrictions on the flow of goods and services in interstate commerce- are In creasing and0 expanding^ " ^ L::
^ 1 The greatly- diversified eoMoi^ of th*'toited States is direetly- bound1 up" with the physical environment of the : country; ’Soil, elimateV: and”resources-are determining fac t o r s in the use-of-the land. The economic relationship be tween men and his physleali environment*1 Is tbo Often over*- looked, yet -it inf lUehc'es the costs a6dl#ays of living.
0 L ittle imagination' is required to conceive1 of the-li'aV-1 irif ices ' that would attend** an - extreme degree of s e lf-1 * su fficieh cy.1: TOry few' Of1 the- forty^-e ight Otates3 w uld be able to attain' oomplete self-sufTiolOacy , - aM -t^h ’only with great drops' in the plane- of - livin g. -:tite’advantages - of free trade among the - states can hardly- be overvalued ; however’," this is hot to'say that particular states Or regions must remain primarily suppliers of raw materials or that in such regions, a greater degree of industrialization would not be vu;-.'■ ~c -n i ■; o*;v c-i t; r, Lnit, c-a behefioial to the economy of the region and that of the
United States in:’ general.: - - • ’ ' r i’or t o both In ta r - i-133'-' ■■r:r fex'-o. ro v o .-r - , The interstate and foreign movement of commodities - 'r v»lnh o v a i * ■: , Xu v 'X' o ,o b c ■■ O :: . - X vXxX'OL: , 3 1 into and; out of a state refleets the lapoptant industries of the state as well as its Industrial defieieneies. -Some areas are highly industrialized, in:which.ease manufactures 2 account for a greater part of the exports, while other areas are strictly agricultural with If am and ranch prdd-i nets composing.the ,exports. : The total movement of goods ^ and services to and from a state .indicates;to some extent the degree-to whichcthe state is industrially 'diversified, the lines in which its economy is particularly vulnerable to: fluctuations in demand; and competition, and the direction- in vdiich growth is particularly desirable. 1 . :. In .the space of a singlet generation, Arizona has been transformed from a frontier eOWomyr to a bustling proto type of twentieth century:progress; Arizona climate and 3 the location of the State;';.in;the1 path of westwfd expansion
and progress opened unlimited possibilities for growth; With th is recent change in pace, Arizona has ’.turned -r :•
from a 90 per cent agricultural e«>riomy to rone which is be ginning to show potentialities of a modern, well-rounded" '
economy. New and extendi, transportation fa cilities; cli
mate, and the vast land area are important factors in this change. .:: jor..:
T. "State*’ here is used to mean one of the United S t a t e s . "...... ' ...... ' ' *- ' r- : : .. 2. ’’Export” and "import" here refer to both inter state and foreign commerce.
- 3. . ’’State” with a capital ”3" is used to indicate the state of Arizona. 4
1 ; Althoagh land and r@so«r©es are plentif ul, the3e : are to some extent still-mndeireldped and m wed, -and the State has not developed.comparable Industrial plants and' equipment
In relation to Its resourees; Aeute. water:poverty and In adequate reserves peril the eeenomy in eertalm. parts' ef the State. . Declining water levels and increasing salt:content post a.serious threat to permanent. irrigation, and large expenditures are necessary to develop required waterrsup- 1 plies; Arizona, therefore, is ah importercof numerous ch- commodities, among which products of heavy:industry-and:prod ucts relying upon skilled craftsmanship rank high. or o . ^. Arizona commodities, chiefly products of mines and agriculture, are shipped te]other:states iniamounts esti mated to equal almost half:the value.-of goods, and: services - 2 produced in the State. Roughly matching the value of this
flow are the commodities brought into the State to meet
needs not covered by the production of Arizonavi Since:many of the comaoditie s {produced in the: Stater would:not:be:worth nearly so ’much if ;their -sale:and distribution were confined
to markets within the! State j this commerce adds-consider
ably to, the value of the State’s production and gives em ployment and added income toiitsv people;: Foreign:and.inter state .marketing of Arizona products also:permits:consumption
:;V- - 2 ' " • •; ^ '" v: ! r cv,: rrir crrr-x,;! IT Harold Schwalen, The Arizona Daily Star. September . 10, . 1949» -p*-7 e . ..-TJ r:;.-- c : 2. rp.Talley National Bank, Arizona Statistical Review (Phoenix: Valley National Bank, 1948), pp. 18-26. 5 of a wide, variety of goods and services, many of which can be obtained* only through trade with other states and with foreign countries., / to ov• ■ " -o.; f ■. - • The specialization which leads Arizona to prMuee. a ^ surplus; o f;agricultural products such as fruits and vege t a b le s , l i v e s t o c k , cotton, and other crops, minerals such as copper, gold, silver, lead, zinc and various non-metallies . is tied in directly with the soil and the; comparative a&i- vantages of these fields in relation to other areas. Tech nological conditions for the raising of cattle and growing of crops require much.land•with relatively little labor and investment. v- < r: i.v' / v. -:The location of mineral deposits in Arizona: has given rise to a substantial mining industry, despite the: relative disadvantagesr of ; distant.markets and expensive ra il trans portation. ; itr;:.:.: : v,.. • Although the aggregate valiM. of manufacturing produc tion in the-State:(excluding:smelter operations and war : contracts) has increased from $30,000,000 in;1940 to more :- than $125,000,000 in2l9£8 with:an employment increase from about 8,000 to• over.105,000, data’.indicateithat output;of mining and agriculture-have increased proportionately. The mining industry"has employed:12,000:to 13,000 workers over the past eight-years, while output has increased from
$90,000,000:in :1940 to about.#220,000,000 in:1948. Agricul
tural employment has risen from about 32,000 in 1940 to 8 approximately 65,000 in 194-8 while oash inoom# from farm - aridvranoh prodtietibn has;inoreased durilg th is aame period * from less tMh | 60,000,000 to over #200,000,000. A Similar
increase is seen in all- other- phases of the economy such as motor Vehicle registration, telephone^Service,Oleetrlc* gas'and water connect ions y and inthi-ihcbm e--Of-the'State;
T his ties- in with the-increase Ofrpopdiation which7 has-risen
from"123i000 in lOOO-tb about $00,000 in 19AO-and'an; @«ti- mated 7gOyOOO in :194,S} -" tv-* s. ■Jov and aavo-nJ
'T h e‘population-growth has been partly compensated-f@r
by aa' expansibhcintpfoduOtion, andtalso in imports1aM"ex ports . The ratio of:imports-and exports has:remained fairly
stable, but-more products Wive C been made Available for ex^
port'w hiler;added -impOrtsf have also ’been’ a:-factbr in-expanded in te r n a l bu sin ess" volume *r - . - i:xu u • Ui- • z l rc ■ 7 ir. v. r .
' Despite this marked economic expansion, the State is
far from being a well-diversified^m ature economy1 Enor mous amounts of capital would be required'tolbuild a highly
industrial' Arizbna’y although a considArabia degree- of idiversi-
f ibatidn, particularly in light Industries y;-ls in' the prb- t
cess Of•development; A continuation of this m)vement un- doubt edlywoiild be -economically advantageous . In seeking
to attract developmental capital; Arizona-naturally en counters the competition of other areas, many of which are considered by prospective'investors to possess investment- - - u-. 11; c i r." load or, 1. Valley National Bank, op, cit., p. 3. • - : .>* d v ' •. t C t. vi* ' ... « ^ -:: ri 1 ? , ^ v llU * ‘ v V. 7 opportunities superior to,those ef the Sunshine gtete. Im- , provesent in the water situation would remedy: much of this, and; thus overcome many - obstacles to the deyelepapmt # f; .n:: adequate and desirable faeilities. =. av- I::; :(Transportation services are fairly well developed in
Arizona. The Santa Fe and Southern Pacific Railroads pro- : cr, u " ■ i . O ‘,h '.:L r:0.; ‘Vv; . : :,0 vide adequate services firoa all parts of the State to all ■' -• i i \ O O ;:n i-u ! v ub ; l h;: a i focal points of the nation. The growing demand for air ajtecv;;a ' a " L:of la o 'o a v , loo . transportation is adequately met by two major and several ‘"o <■ -flor a-' O': o-a.ioo -O -a -y r y v-.,, nf 'O'. 0 smaller airlines. Bus and truck transportation also seems ' " •.;'oor':.o O- ' 1 .'ioori.- . a a:. o.O l. .oal, o i'— o.. o '"or f? o- 1" adequate. Although sufficient to meet the needs of the --""o-a ooo/o ao"o ,oo:.o:oo: .o - oo o. lloo" a::': oo, vol--. < • State, transportation still causes a major problem to the : ':V • ,-v : oon ooo oolvvo ■olr..lo.o rv- ioc c-'ov-lfoo-, loo ol oro:v.oo economy of Arizona. High shipping costs for raw materials ' '' '■'■'•7 -7 -o cr i.o :o;.l ropooo:: rjoole'vo o' o'Aoo.ro.OuO oj ocool- and finished products are factors detrimental to attracting ■7: • ' 'OVOO O'i ' 0 70 ;r ';blo io-volloole , 0..'.00 roc;- tlo- new industries, and. also may impel industries already in the :'7 f :'"7 '.0:00 r 0.0000.1 ov O-'r -'OO-OO: of OCO .Oo 1 0 OvO 'O O'o OOOo V- State to move their operations elsewhere. :■ .o.:' o oy ov.bor^oooo-: i'ooo :o.:7:oo.o:.L o or 1-oloovloo Jo fho 1 oo The limited market available locally and in the gen- ■" O'Or*■ obo vo v'-roO'.. oo" o;::: oooo:,: r^oooi.o'-to.;.': oo .oo:7 o-ooo. eral area of the Southwest is another obstacle for many in- ; 7: - "-i -ooh-r . ire :ov: o.o.o'o::: , 'boo. o -l r .l-o'.’o .: ■ •: oorb.. To dustries located in Arizona. The population and the indus- or-, :roo ■' .17 io loo'-oooo;-. -of o v To oroorri -ob. :.oo: .oro.-o o. ofo trialization of the Southwest are smaller than for any other oc.f o;/ ..or r-'o .rool ; O" b’rob'. ..or .o oroo : oo. - . 7'o"0r1... region in the nation except for the Northwest. Major mar- o:. o-.. i'-.7o.'ulrT:.ol f-,- ooooo-.rrooo-o' r-f ■Tooorb.o oro o ■: - kets for many products are distant, and states located f- ■ f-'-v.. 7:rc;:i ; hro-- oo* loro , * r 'r. closer to large markets have a distinct advantage over : '' •• , > - *- y; i o-ro. ..'77 A rizo n a . 7.':■ ro-- c.-Too .. or’ ;‘.rr;vr :r.b oor-r..:-77;7 o-> Irovo 7- ;o ooo ’ c Taxes on industries constitute the important obstacle
barring new industries: from the S tate.T h e tax load on v.j_i.o.o::-r ; fc booo.'7,0.0:7 7 7':7:7:7.V 7:;..7':777r'7T ;7:TT"'f: 7—o,—: 0 .• _ ™uiy types 7bf manufacturing in Arizona is more than double 8
1 th e' mnount lasses amd on the same operations in states.
Furthermore, -laany other states offer definite tax advan
tages -and npeoial inducements■to new industries/ faotons - which
are not* stressed in this State’s bid for a diversified - ~ c: economy. our%’r - ) rui■". »;•.«,> c i
vrcvi;: : not o?i An explanation may be appropriate at this point as to 1 ;,r'v;-: ; no "oro tno.n. ;.ruUo;'..L.LOiin . the methods used in conducting this study and the difficul- l:-•vovc:' „ vno ; n n;n: coi-nuaocn on a poroon?-?' ties encountered in the compilation of information. Von In r r: innii n^lnn onoo , no :r:;:; nnn porcenve-pa c.c In order to determine the amount and type of the ccvni".vo by non n-oironn Kivav.-ay b-.-nartrnn.L. fruO: catr, for State's exports and imports, statistics from a variety of nyolo-!-ioir n :yr,- y r e,y ic?..g.e sources have been pieced together. Unfortunately,, many ,de- v:; V::-'-iur y.,:o:o are ur.ed, except vf’tcre o tv nr n/nn*- sirable data are unavailable or incomplete. The character a'\‘:n,v . 'n.lcen on,, from t r a d e , ocuon n:- vri.rfr.in U:.e b - v o r o of many imports and exports subject the estimates to possi- tf ■ v.nyr i r r l n-': ni’rn: „ ore care of . c v-y ;yy;y.,y y roup;, ble errors of considerable magnitude. Exports from the '.. ■: '..Oyv r .rn:; ny - ' f nfnn^ ; .novo, of V u rlo -V •" niir-.f-iry. State of each commodity or group of commodities were deter- off, fno ovof^ff %f iff v;ao onf inow :o .lorpoly nr, iro Vn;-,n mined by subtracting from shipments originating in the State •:V yro-,0 f;.a accounting fco cVc If rye of corv rye, v,*l Lb. vuo u i- the amount or value of shipments terminating in Arizona. f vf.; nor lor of hr r preduoff in f ;;o yroipn. Unless otherwise indicated, the net figures are used. In f ' -nnilv rof f r u a l f y nuoffri J f -Iff f i:rc;; OV, nor off:! ti-OVf some specific instances, both the exports and imports of the t f . .. orn c--. fc;y; orioc to short toiis for the ouxo vf ocu- same commodity or commodity group were indicated. Imports ffyn-rry '. ynyy •.•.it]': .ffico ; ncxtXtleD p ro u u o tf Of r ho of Off were calculated by subtracting shipments originating in y o.;; t ro n e - s ta te sh iy m v its, o V o rc off no a o n In L: v.: u.yt-i the State from those terminating here. Again in some in- on ■3W.c!r yar ulc iy; or ion ;iy f :y„ ncrc-m vc . =jf so:, ;:•: n o u stances, both exports and imports were indicated. Allow- o;: f vlr jfi or rh; prvnis is 1 f icuvfri, *; ra .if cm f •.- r-.;.- ances for re-export of imported commodities have been made Vdof accurate , yy fo y-vf vurf fro nr-fo , y.d-:-oorry.yo
--u 1. In it ia l 'Report^ o f: ‘the Governor ' A- iKdust rla l De- velopment Committee (Phoenix: Chamber of Commerce, TuTy 15, 1 ^4 9 ) , R eport Wo. 1 , pp. 1- 3 . 9 where possible, but errors arising from inadequate data
should be taken into consideration.
The latest available statistics have been used. For
some commodities, these are as of 1947 and indicated changes
have been accounted for as far as possible. Statistics on truck shipments are not available since 1945-46. Data on
1948 truck shipments possibly are no more than indications.
However, the 1948 figures are calculated on a percentage basis of rail shipments, using the 1945-46 percentages as
compiled by the Arizona Highway Department. Truck data for agriculture are as of 1948. Calendar years are used, except where otherwise indi
cated. Prices are from trade sources within the State ap plied to physical volume. In the case of commodity groups
including many different products, often at widely differing
prices, the average price was estimated largely on the basis of products accounting for the largest tonnage, with due al lowance for other products in the group.
Commodities usually quoted in measures other than short
tons are here converted to short tons for the sake of com
parison. Trade with Mexico includes products of the State and trans-state shipments, as there are no available data on the State's participation in the movement. Destination
or origin of shipments is indicated, where it can be de cided accurately. No attempt has been made to determine
ultimate destination, as this appears unimportant. CHAPTER II
MINING
For many years Arizona has led all the states in the total production value of non-ferrous metals, and this posi- 1 •tion was maintained again in 1%8. Mining of all ore reached a record output of almost 40,000,000 tons as com pared with 38,600,000 in 1947♦ The combined value of the five non-ferrous metals (copper, gold, silver, lead, zinc) 2 was more than $195,000,000. The value of non-metallic and miscellaneous m etallic minerals was estimated to be about
$25,000,000 which brings the total to an impressive 3 $220,000,000. This is an increase of two and one-half
times over the 1940 value and 7 per cent more than in 1947•
Approximately 85 per cent of the total ore production was treated at twenty-eight concentration plants, 9 per
cent at two leaching plants, 2 per cent was shipped in crude
form, and the remainder treated at various cyanidation and
amalgamation plants in the State. All the minerals are
IT Department of Mineral Resources, Annual Report (Phoenix:. Dept, of Mineral Resources, June 1949), p. 8. 2. Of. p. 5, ante.
3. Department of Mineral Resources, op. c it. , p. 8. 11 shipped in interstate commerce after being treated as indi- 1 cated above.
The State is net importer of several products of mines.
Among these products asphalt, bituminous coal, and sulphur rank highest. Heavy industries are almost absent in the
State, so the demand for these and other products of mines i s s l i g h t .
Non-ferrous metals, non-metall1c minerals, and m iscel laneous m etallic minerals are by far the most important export of the State, constituting almost 97 per cent of the total physical volume of all exports and 47 per cent of their total value.
Copper
The value of copper production in Arizona in 1948
amounted to $162,936,000 or about 75 per cent of the total
value of minerals. The physical amount was 38,970,000 tons or 97.5 per cent of the total weight of mineral production.
Arizona’s output of copper was the largest in the nation,
showing an increase of 1.6 per cent over 1947 and about the 2 same as the peak war production reached in 1943• The price
of copper remained high throughout 1948, at around twenty- three cents per pound. The 1949 price of about eighteen
H Department of Mineral Resources, op. pit. , p. 1 0 .
2. United States Bureau of Mines, Minerals Yearbook (Washington, D.C.: Govt. Printing Office" July 1948), p . 1302. 12 cents per pound w ill inevitably affect operations and force curtailment or closing of marginal producers. A four-cent tariff is sought by the industry, which seems inconsistent with the decisions of the Geneva Conference in 1947 spon sored by th e U n ited S t a t e s , where th e maximum was s e t a t two c e n t s .
Most of the copper ore was treated by flotation at or very near the mine of origin, and the resulting concentrates were shipped elsewhere for smelting. Some copper ores were direct-smelted either because of their high-grade ore con
tent or because of their fluxing qualities. About 85 per cent of the produced copper ore was treated at concentra- 1 tion plants located in the State. The entire production
of copper ore enters interstate commerce, of which less than 1 per cent is exported by truck.
Lead
Physical volume of lead mined in the State in 1948 surpassed that of any previous year. The output amounted to
58,000,000 pounds valued at more than $10,000,000 with the 2 price reaching an all-tim e high of 21 1/2 cents per poundo The total value was 25 per cent greater than the previous
TT Interview with Charles H. Dunning, Director, De partment of Mineral Resources, State of Arizona.
2. Department of Mineral Resources, op. eft., p. 1 1 . 13 high of 1947• The 1949 price of lead has dropped rapidly and continually to about fifteen cents per pound. These successive drops w ill have their inevitable effect on the output, which probably w ill show a sharp decline. There are no lead smelters in the State; all the lead concentrates are shipped to smelters located at El Paso, 1 T ex a s.
Z inc
Zinc production for 1949 probably w ill be considerably less than in 1948. The 1948 price of up to 17 1/2 cents per pound resulted in record production value. In 1949 the price of around ten cents per pound left the producers little if any margin, and many may be forced to close. About 107,000,000 pounds of zinc valued at $14,000,000 were produced in 1948. The physical volume was less than for 1947 but the higher price resulted in record production v a lu e .
Zinc smelters are absent in Arizona. All the zinc con centrates are shipped to smelters located at Amarillo and
Dumas, Texas; B artlesville, Oklahoma; Fort Smith, Arkansas; 2 and Great F alls, Montana.
TZ Department of Mineral Resources, op. o ft., p . 1 3 .
2. U.S. Bureau of Mines, op. c it., p. 1 3 0 4 . 14
Gold
Only two or three mines in Arizona produce gold or silver alone. Most of the gold produced is a by-product of copper ore and zinc-lead ore. Gold output in 1948 of
107,000 fine ounces was the largest since 1944, which ties in with the quantity increase of copper, lead, and zinc. About 80 per cent of the State’s gold output was recovered from copper ore, 13 l/2 per cent from zinc-lead ore, and 5 per cent from siliceous ore with the remainder from lead ore. The State’s gold output was exported in its entirety, 2 valued at $3,700,000.
S ilv e r
The 1948 output of silver amounted to 4,720,000 fine
ounces, which was the largest since 1943. Of this, 92 per
cent is recovered from copper ore and lead-zinc ore, the
remainder from siliceous ore, lead ore, zinc-copper ore, and zinc ore. The value of the total output amounts to
about $4,200,000 and the entire output is exported. ^
M iscellaneous
Miscellaneous m etallics and non-metallic mineral pro duction amounts to 11.6 per cent of the value of total
Tl tr.s. bureau of Mines, op. c it ., p . 1 2 9 9 . 2. Loo, cit.
3. Department of Mineral Resources, op. cit. * p. 1 0 . 15 mineral production in Arizona. The activities have been concentrated in operation of non-xaetallies such as asbestos, clay, lime, marble, feldspar, and fluorspar. Bentonite clay worth about $200,000 is shipped to oil refineries in 1 other states for filtering purposes. Shipments of asbestos 2 in 1947 amounted to 1,500 tons valued at $75,000. Opera tions in this field have increased greatly recently, but production figures are not available.
There has been little activity in the mining of such miscellaneous ores as manganese, tungsten, mercury and quick
silver. The 1947 figures show about $30,000 worth of tungsten mined. Interest in manganese properties has in creased lately, possibly because of threats from Russia to
cut off exports to this country. Keen foreign competition has virtually closed every mer
cury mine in the State. Demand for tungsten concentrates,
on the other hand, has recently increased but adequate sta- 3 tistics are not yet available.
Uranium production in the State is confined to five
mines on the Navajo Indian Reservation, except for scattered
occurrences of uranium in petrified wood. The daily output
of the mines runs about 200 tons, all of which is purchased
I-! Department of Mineral Resources, op. pit., p. 1 7 .
2. U.S. Bureau of Mines, op. c it., p. 1303.
3. Department of Mineral Resources, op. cit. , p. 1 2 . 16
1 by the Atomic Energy Commission. There are no processing plants in Arizona. Crude ore is shipped to plants located at M onticello, Utah; Durango, Naturita, and Uravan, Colorado.
The mining industry as a whole competes keenly with foreign producers. In many instances, foreign-controlled cartels pose a serious threat to the welfare and continued operation of Arizona mining. Furthermore, high transporta tion and refining costs add to the problem. Apparently, at least until recently, the volume has been insufficient to support local smelters. Should the volume increase suffi ciently to support such smelters, it could relieve much of this vulnerable condition. TABLE I 1 EXPORT OF MINERALS FROM ARIZONA
Per c en t P er c e n t Actual weight o f o f P rod uct Actual value (short tons) total value total weight
Copper $162,936,000 38,970,000 7 4 .1 5 9 7 .5 3
Zinc 1 4 ,0 0 0 ,0 0 0 53,500 6 .3 6 .1 4
Lead 1 0 ,0 0 0 ,0 0 0 2 9 ,0 0 0 4 .5 5 .0 7
S ilv e r 4 ,2 0 0 ,0 0 0 1 4 7 .5 1 .9 0 ** Gold 3 ,7 0 0 ,0 0 0 3 .3 4 1 .6 8 ' ** M isc.* 2 5 , 0 0 0 ,0 0 0 9 0 0,000 1 1 .3 6 2 .2 6
T o ta l $219,836,000 3 9 , 9 6 2 ,6 5 1 1 0 0 .0 0 1 0 0 .0 0
*E stim ate ♦♦Negligible
1. U.S. Bureau of Mines, op. cit., p. 1302. Interstate Commerce Commission, Statement No. 0,-550 (SC£3), Bureau oTHFransport Economics and S tatistics (Washington, D.C., June"T949)e CHAPTER I I I
AGRICULTURAL PRODUCTS AND LIVESTOCK
Arizona agriculture employs more workers than any other industry within the State. Employment in this field has more than doubled in the past nine years, and the value of agriculture in the State's economy ranks high. The 1940 census shows there were 19,000 farms in Arizona valued at
$153,676,675, yielding an income of $60,000,000 and giving employment to 32,000. Total cash income from agricultural products in 1948 amounted to $215,000,000 or three land:a half times the reported 1940 income and about the same as income from mineral products for the same year. About three- fourths of the agricultural income is derived from produc tion of cotton, truck crops, beef cattle, and dairy products.
Cotton alone accounted for $59,000,000; truck crops for 1 $50,000,000; and beef cattle for $45,000,000.
Although Arizona is a great producer of farm and ranch products, practically none of these items are processed within the State. Fresh produce or raw materials are sent to the Atlantic states, Chicago, Kansas City, Oregon,
California, and other points. Much of the exported raw
H Arizona Agriculture. 1949 (Tucson.: University of Arizona Experiment station), Bulletin 220, p. 1. 19 1 . material returns to the State in processed form. Only a negligible portion of the annual $50,000,000
truck crop is processed in Arizona. This fact lim its the crop to those items which can be shipped long distances in
fresh form. In 1948 the State exported 774,764 tons of fresh fruits and vegetables of which 657,632 tons were 2 3 shipped by rail and the remainder by truck. Lettuce ranks highest in tonnage of a ll the crops. In 1948 there were 250,000 tons produced, of which 200,000
tons (21.5 per cent of total agricultural exports, excluding livestock) were shipped by rail and approximately 10,500
tons by truck. The value of the 1948 crop was $24,600,000;
exports amounted to more than 80 per cent or $21,000,000. Cantaloups and melons rank second in tonnage of ex
ported agricultural products, accounting for 9.8 per cent
of a ll such exports. The 1948 production was 143>325 tons
valued at $10,912,000; exports were 98,940 tons valued at
$6,614,000. Rail shipments amounted to 97,240 tons and the remainder were transported by truck. California, New
1. "Unless otherwise indicated, information is from the sources given in footnotes on this page. United States Department of Agriculture, Bureau of Agricultural Economics, The Federal Crop and Livestock Service for Arizona (Phoenix: t/.S. Dept. of Agriculture, February 1949). 2. Interstate Commerce Commission, Statement No. 0,-550 (SCS), (Washington, D.C.: Government PrintingTiffice, June 1949).
3• Arizona Highway Department, Highway Planning Survey (Phoenix: Arizona Highway Department, 1946). Inter s t a t e Commerce Com m ission, £ £ . c i t . 20
Mexico, Utah, and Texas received most of these crops.
Export of watermelons amounted to 12,000 tons of which
7,500 were shipped by rail and 4,500 by truck, the value of this export being about $650,000. Production was 17,000 tons worth about $900,000.
Cotton ranks highest in export value of crops. From the 80,000-ton crop of 1948 there were 64,453 tons exported;
63,673 tons were sent by rail and 780 by truck. Total pro duction was valued at $49,600,000 and exports at $40,000,000. Of the approximately 20,000 tons of cottonseed prod ucts in 1948, 15 per cent were exported. Total production was 134,000 tons valued at $9,500,000 and exports amounted to $1,420,000. Products exported were largely cottonseed oils, cakes and meal, with a negligible amount of hulls and bran. Imports of cotton seed amounted to 3,600 tons.
Barley and rye rank high both in value and tonnage among the State's exports. Total production in 1948 was
150,000 tons valued at $8,500,000, Rail shipments account for 83,216 tons and truck shipments for 2,350, th e v a lu e of total shipments being estimated at $4,965,000.
Exports of sorghums amount to 40,200 tons worth about
$2,064,000. Production amounts to 75,000 tons valued at $3,870,000.
Wheat in the amount of 3,400 tons and worth about
$354,000 is exported. This is somewhat less than 25 per
cent of total production which is 136,000 tons valued at 21
$i,4i7,ooo. Six per cent of an annual production of 541,000 tons of hay is exported; total production is worth $10,820,000 and exports $650,000. Rail shipments account for 21,000 tons while truck shipments amount to 11,500 tons, mostly to California.
Annual production of citrus fruits amounts to 70,000 tons worth about $3,500,000. Of this 63,400 tons worth $2,500,000 are exported; 26,700 tons are shipped by rail, • and the remaining 32,700 tons by truck to California and T exas.
Shipments of cabbage amounted to 6,400 tons by rail and 500 by truck with a total value of $360,000. Produc tion in 1948 was 16,500 tons worth $870,000. Celery production for Arizona in 1948 was 13,000 tons valued at $800,000 of which 8,000 tons worth $493,000 were
exported. The onion crop was 10,100 tons worth $945,000 of which 70 per cent valued at $655,000 was exported.
The State produced 43,750 tons of potatoes, almost
50 per cent of which was exported. About 18,000 tons were
shipped by rail and 1,250 by truck. The value of total
production was $3,358,000 and of exports $1,511,500.
The entire crop of flaxseed (about 30,000 tons) was
valued at $6,650,000; exports accounted for 28,700 tons worth $6,360,000.
On the other hand, an estimated 1,500 tons of dried, ^
dehydrated, and evaporated fruits and berries are imported 22
a n n u a lly .
In 1948 Arizona exported a total of 334,566 cattle
and calves. Two-thirds went to California while Texas, Colorado and New Mexico received another 12 per cent of
total shipments. The remainder went to Nevada, Kansas, Idaho, Montana, and other states. Export of livestock
amounts to almost 12 per cent of the total exports from
Arizona, according to value. In the same period 133,272 head of cattle and calves were imported, almost a ll of which were stocker and feeder cattle. Of this number, Texas accounted for 50 per cent,
New Mexico for 33 per cent, while smaller shipments came from Colorado, California, and Oklahoma. Both exports and
imports have dropped considerably over the past three
years, exports about 25 per cent and imports 30 per cent.
Cash receipts from farm marketing of livestock and
products amounted to $77,091,000 for Arizona in 1948, which 1 was slightly higher than for 1947. Exports of cattle and
calves were worth $50,185,000 and imports totaled about . 2 $20,000,000. Exports go to other states mostly for fat tening and finishing, since Arizona is poorly prepared for
the processing of meat. Exports are about equally divided between rail and truck.
~ 1. United States Department of Agriculture, Bureau of Agricultural Economics, The Farm Income Situation (Washing- ! to n , D.C.: Government Printing O ffice, February 1949).
2. Average weight 750 pounds; average price $20 per k hundredweight. 23
During 1948 the State bought, sold, and slaughtered less cattle than during any of the previous six to eight years. Exports were 14 per cent less than 1947, and the smallest since 1940 while imports were 13 per cent less than 1947 and the smallest since 1944. The number of slaughtered cattle was down 13 per cent from the previous year and the smallest since 1943. 1 Although stocker and feeder cattle imports were the smallest since 1944, the 1948 total was equal to the aver age for the ten years prior to 1946. During 1946 and previously, half or more of all cattle imports came from Mexico. The embargo against Mexican cattle since 1946 has been partially offset by increased purchases from neighboring s t a t e s .
Yfool and mohair exports amount to about 2 ,000,000 pounds worth approximately #1,000,000; the entire output is exported by rail. There has been a definite and continuous decline in the number of sheep in the State. Some 4,000 tons were exported, valued at from #150,000 to #200,000.
Exports of hides, skins and pelts amounted to 2,000 tons, three-fourths of which was shipped by rail.
The dairy industry in Arizona is fairly well developed, the output being consumed within the state. In addition eggs, butter, cheese, and. poultry products are imported.
TI O f. p . ^ 2 , ante. 24
Arkansas and Utah ship a large number of poultry products to Arizona, while Kansas supplies the State with great quanti ties of meat.and eggs. Only about 1,500 tons of these prod ucts enter the State by rail while 8,000 tons come by truck.
The total value of exports of agricultural products (including livestock) is almost $150,000,000 per year. Almost three-fourths of the State’s production of agricul tural products and livestock is exported. In many instances the economic gain from exports is offset by expenditures for imports of the same products in processed form. At times, seasonal differences throughout the nation account for this situation, but frequently it is due to an insufficient num ber of processing and finishing plants within the State.
Transportation costs of raw materials exported and of finished products imported are thus added to the total cost. TABLE II
ARIZONA EXPORTS OF AGRICULTURAL CROPS AND LIVESTOCK1 (Ranked According to Value)
Per c en t Per c e n t Actual weight o f o f Product Actual value (short tons) total value total weight
Cattle & calves $50,185,000 1 2 5 ,0 0 0 3 5 .6 1 4 .9 C otton 4 0 ,0 0 0 ,0 0 0 6 4 ,4 5 3 2 8 .3 7 .9 2 L ettu ce 21,000,000 210,500 1 4 .8 2 5 .1 2 Cantaloups & melons (excl. watermelons) 6 ,6 1 4 ,0 0 0 9 8 ,9 4 0 4 .6 1 1 .8 F la x se e d 6,360,000 28,700 4 .5 3 .4 1 Barley & rye 4,965,000 85,566 3 .5 1 0 .2 Citrus fruits* 2 ,5 0 0 ,0 0 0 6 3 ,4 0 0 1 .6 7 .5 5 Sorghum 2 ,0 6 4 ,0 0 0 4 0 ,2 0 0 1 .4 4 .8 P o ta to e s 1,511,500 19,250 1 .0 5 2 .2 8 Cottonseed prod u c ts n.o.s. 1 ,4 2 0 ,0 0 0 2 0 ,0 0 0 1 .0 2 .3 7 Hides, skins* 1,000,000 1,500 0 .7 .1 7 Wool & mohair 1,000,000 1,000 0 .7 .1 1 Onions 6 5 5 ,0 0 0 7 ,0 0 0 0 .4 5 .8 3 Watermelons 6 5 0 ,0 0 0 1 2 ,0 0 0 0 .4 5 1 .4 3 Hay 6 5 0 ,0 0 0 3 2 ,5 0 0 0 .4 5 3 .8 9 C e le r y 4 9 3 ,0 0 0 8 ,0 0 0 0 .3 .95 Cabbage 3 6 0 ,0 0 0 6 ,9 0 0 0 .2 5 .8 1 TABLE II (cont.)
P er cen t Per cen t Actual weight o f o f P roduct Actual value (short tons) total value total weight
Wheat $ 3 5 4 ,0 0 0 3 ,4 0 0 0 .2 4 .4 Sheep 175,000 4 ,0 0 0 0 .1 1 .4 7 Misc. products n.o.s. n .a . 5 ,0 0 0 m w r n .5 9
T o ta l $141,956,500 8 3 7,309 1 0 0 .0 0 1 0 0 .0 0
^Estimated from available information, n.o.s. = not otherwise specified n.a. = not available
1. Prices are as reported by the United States Department of Agriculture, Federal Crop and Livestock Service for Arizona (Phoenix: Bureau of Agricultural Economics, February 1^49). And Arizona Agriculture, 1949 , op. o i t . Interstate Commerce CommlsslonT op. o it. Arizona Highway^Department, o p . c l t . 27
TABLE I I I
ARIZONA EXPORTS OF AGRICULTURAL PRODUCTS AND. LIVESTOCK, 1 948, BY METHOD OF TRANSPORTATION1 (Net Movement)
E x p o rts P er cen t Per c en t Commodity (short tons) by r a i l by tr u c k
L ettu ce 2 1 0 ,5 0 0 95 5 Cantaloups & melons n .o.s. 9 8 ,9 4 0 9 8 .2 1 .8 Watermelons 1 2 ,0 0 0 6 2 .5 3 7 .5 C otton 6 4 ,4 5 3 99 * Cottonseed products 2 0 ,0 0 0 100
Barley and rye 8 5 ,5 6 6 9 7 .3 2 .7 Sorghums 4 0 ,2 0 0 100 Wheat 3 ,4 0 0 100 Hay 3 2 ,5 0 0 6 4 .6 3 5 .4 Citrus fruits 6 3 ,4 0 0 4 8 .4 5 1 .6 Cabbage 6 ,4 0 0 92 8 Celery 8,000 97 3 Onions 7 ,0 0 0 100 P o ta to e s 1 9 ,2 5 0 71 29 Flaxseed 28,700 96 4 Cattle and calves 7 5 ,0 0 0 45 55 Wool and mohair 1,000 100 Sheep 4 ,0 0 0 48 52 Hides, skins, pelts 2,000 75 25
*Less than 1 per cent n.o.s. = not otherwise specified
_. 1. Interstate Commerce Commission, op. c it. Arizona Highway Department, op. c it. U.S. Department of Agriculture, 0£. cit. TABLE 17 ARIZONA PRODUCTION AND EXPORT OF AGRICULTURAL PRODUCTS AND LIVESTOCK 19481 1
E xp orts (Per cent of Commodity P ro d u ctio n total production)
Lettuce #24,600,000 8 5 .3 Cantaloups & melons 10,912,000 60.6 Watermelons 900,000 72.2 C otton 49,600,000 80.6 Cottonseed products 9 ,5 0 0 ,0 0 0 1 4 .9 Barley & rye 8 ,5 0 0 ,0 0 0 5 8 .4 Sorghums 3,870,000 5 3 .3 Wheat 1 ,4 1 7 ,0 0 0 2 4 .9 Hay 1 0 , 8 2 0 ,0 0 0 6 .0 Citrus fruits 3 ,0 0 0 ,0 0 0 8 3 .3 Cabbage 870,000 42.0 C elery 800,000 61.6 Onions 9 4 5 ,0 0 0 6 9 .3 P o ta to e s 3 , 3 5 8 ,0 0 0 4 5 .0 F la x see d 6,650,000 95.6
Cattle & calves 7 7 ,0 9 1 ,0 0 0 6 5 .1 Wool & mohair 1,250,000 80.0 Sheep 2 ,7 5 0 ,0 0 0 ...... 7 • 2
1. Interstate Commeree Commission, oja. o it. Arizona Highway Department, op, c it. U.S. Department of A g r ic u ltu r e , o p . o it. TABLE V
ARIZONA EXPORTS AND IMPORTS OF AGRICULTURAL PRODUCTS AND LIVESTOCK, 1% 8
Volume (in short tons) ______Value______Gross , fret Gross Net in- out- in- out- in- out- in- out- Commodity bound bound bound bound bound bound bound bound l e t t u c e 3 ,0 0 0 2 1 3 ,5 0 0 2 1 0 ,5 0 0 $29 5 ,2 0 0 $21,295,200 $ $21,000,000 C an talou ps / & m elons n . o . s . 25 9 8 ,9 6 5 9 8 ,9 4 0 1 ,6 5 0 6 ,6 1 5 ,6 5 0 6 ,6 1 4 ,0 0 0 Watermelons4‘ 500 1 2 ,5 0 0 1 2 ,0 0 0 2 7 ,0 8 3 677,083 6 5 0,000 C otton 3 0 ,0 0 0 9 4 ,4 5 3 6 4 ,4 5 3 1 ,8 6 0 ,0 0 0 4 1 ,8 6 0 ,0 0 0 4 0 ,0 0 0 ,0 0 0 C otton seed & p rod . 3 ,0 0 0 2 3 ,0 0 0 2 0 ,0 0 0 7 1 0 ,0 0 0 2 ,1 3 0 ,0 0 0 1 ,4 2 0 ,0 0 0 B a r le y & ry e 2 3 ,0 0 0 108,566 85,566 1 ,3 0 3 ,3 0 0 9 ,8 0 3 ,3 0 0 8 ,5 0 0 ,0 0 0 Sorghums 11,600 5 1 ,8 0 0 4 0 ,2 0 0 5 9 8,560 2 ,6 6 2 ,5 6 0 2 ,0 6 4 ,0 0 0 Wheat 3 ,9 0 0 7 ,3 0 0 3 ,4 0 0 4 6 0 ,0 0 0 8 1 4,000 3 5 4 .0 0 0 Hay 6 ,7 0 0 3 9 ,2 0 0 3 2 ,5 0 0 1 3 4 ,0 0 0 7 8 4 ,0 0 0 6 5 0 .0 0 0 C itr u s f r u i t s * 1 ,6 5 0 6 5 ,0 5 0 6 3 ,4 0 0 7 5 ,1 7 5 2 ,5 7 5 ,1 7 5 2 ,5 0 0 ,0 0 0 Cabbage 150' 7 ,0 5 0 6 ,9 0 0 7 8 ,2 0 0 4 3 8 ,2 0 0 3 6 0 ,0 0 0 C e le r y 125 8 ,1 2 5 8 ,0 0 0 7 7 ,0 0 0 5 7 0 ,0 0 0 4 9 3 .0 0 0 Onions 1,100 8 ,1 0 0 7 ,0 0 0 1 0 3 ,0 0 0 7 5 8 ,0 0 0 6 5 5 .0 0 0 P o ta to e s 18,400 37,650 1 9 ,2 5 0 1 ,4 1 1 ,2 8 0 2 ,9 2 2 ,7 8 0 1 ,5 1 1 ,5 0 0 F la x s e e d 50 2 8 ,7 5 0 2 8 ,7 0 0 1 1 ,3 8 0 6 ,3 7 1 ,3 8 0 6 ,3 6 0 ,0 0 0 % TABLE V (oont.)
Volume (in short tons) ■ _____ Value Gross Net Gross ' TTef in- out- in- out- in- out- in- o u t Commodity bound bound bound bound bound bound bound bound
F r u it s & b e r r ie s 1 ,5 0 0 1,500 $ 37,500 # § 3 7 ,5 0 0 # C a ttle & c a lv e s 5 0 ,0 0 0 125,000 75,000 20,000,000 50,185,000 3 0 ,1 8 5 ,0 0 0 Wool & m ohair 1 ,0 0 0 1 ,0 0 0 1 , 0 0 0 ,0 0 0 1 , 0 0 0 ,0 0 0 Sheep 8 ,0 0 0 1 2 ,0 0 0 4,000 350,000 525,000 1 7 5 ,0 0 0 Hides,skins & p e l t s 2 ,0 0 0 2 ,0 0 0 1 , 0 0 0,000 1 , 0 0 0 ,0 0 0 P o u ltr y & p rod . 1 ,5 0 0 1 ,5 0 0 n .a . n .a . P ack in g house p rod . 1 2 .0 0 0 4 ,0 0 0 8.000 9,880.000 3 ,2 9 6 .0 0 0 6 . 584,000 Total 176,200 948,009 11,000 782,809 $37,413,328 156,283,328 6,621,500 125,491,500
♦ E stim a te n.o.s. = not otherwise specified n.a. = not available 1. U.S. Department of Agriculture, op. olt. Arizona Agriculture, 1949, 0£. olt. Interstate Commerce Commission, op. o it. Arizona Highway Department, op. p it. VI o CHAPTER 17
FOREST PRODUCTS
On the high plateaus of northern Arizona there are vast forests of virgin timber/ such as Ponderosa pine and Douglas fir, covering more than 12,000,000 acres. Most of this area is within the boundaries of national forests, and from time to time the Forest Service offers for sale blocks of ripe timber. Approximately 480,000 tons are produced annually, although the forests could sustain considerably more. The value of the annual production amounts to
$25,000,000.
Considerable lumber industry is concentrated at or near Flagstaff, McNary, and Williams. The output is con sumed mostly within the State, although some is exported.
Among exports, lumber and lath account for about 84 per 2 cent or 157,000 tons worth about $10,500,000. Approxi mately 15,000 tons of boxes and crates add $750,000 to the value of exports. Miscellaneous forestry products amount ing to 15,000 tons worth $500,000 also are shipped out of the State. Rail shipments account for 175,000 tons, most
_ XT Report of the Chief of the Forest Service (Washington, t).C.: U.S. Dept. of Agriculture, June 1948).
2. Lumber 95 per cent of total, priced at $66 per ton; lath 5 per cent of total, priced at $40 per ton. 32 of which is shipped to the Atlantic and Middle Western states, while truck shipments account for 12,800 tons sent mostly to nearby Utah.
The State’s production of various forest products is insufficient to meet the needs and demands of the popula tion, hence Arizona is an importer of these products, 40 per cent of which are supplied by California. A total of about 307,000 tons is imported of which lumber, shingles, and lath rank highest with a total of 180,000 tons worth
$11,360,000. About 55,000 tons of wooden posts, poles, and pilings valued at approximately $2,000,000 and miscellaneous products of 72,000 tons worth $3,000,000 are also imported.
Rail shipments amounted to 293,300 tons and truck shipments t o 1 3 ,7 0 0 .
The northern Arizona forest lands produce only certain kinds of timber, and the relatively large imports of forest
products are due in no small measure to the State’s demand for various timber products not locally available. TABLE VI <
ARIZONA IMPORTS AND EXPORTS OF FOREST PRODUCTS, 19481
v, V Volume (OOO’s of short tons) Value (OOO’s of $) G ross N et G ross Net i n out- in- out In- out- in- out- Product bound bound bound bound bound bound bound bound
Lumber & lath 180 1 5 7 .5 2 2 .5 11,360 10,500 860 Posts, poles & p i l i n g s 55 55 2 ,0 0 0 2 ,0 0 0
Boxes & crates 15 750 750
Misc. products . 7 2 15 57 3 ,0 0 0 500 2 ,5 0 0 T o ta l 307 1 8 7 .5 1 3 4 .5 1 6 ,3 6 0 1 1 ,7 5 0 5 ,3 6 0 750
1. Interstate Commerce Commission, op. c it. Arizona Highway Department, op. p it. Interview with Mule ah y Lumber Company, Tucson. TABLE VII MAJOR EXPORTS OF ARIZONA (Ranked A ccording to V alueJ1
Per cen t W eight o f t o t a l o f t o t a l Group Value (short tons) v a lu e w eig h t
M in erals #220,000,000 4 0 ,0 0 0 ,0 0 0 4 8 .4 9 6 .6 3 Agriculture (excl. liv e s t o c k ) 8 9 ,5 9 6 ,5 0 0 7 0 0 ,8 0 9 1 9 .7 4 1 .7 Manufactures^ 8 1 ,9 4 5 ,0 0 0 3 7 7 ,5 0 0 1 8 .0 .9 0
L iv e s to c k 5 1 ,3 6 0 ,0 0 0 1 2 5 ,0 0 0 1 1 .3 .3 2 •Forest products 11.750.000 187,400 2 .5 6 .4 5
T o ta l $454,651,500 . 4 1 ,3 9 0 ,7 0 9 1 0 0 .0 0 1 0 0 .0 0
1. U.S. Bureau of Mines, op. cit. Department of Itineral Resources, op. pit. U.S. Dept, of Agriculture, op. oTt. Interstate Commerce Commission, op. cit. Arizona Highway Department, op. c it. Arizona Agriculture. 1949. op. cit.
2. Of. p. 37, post. v*> CHAPTER 7
MANUFACTURES AND MISCELLANEOUS
Arizona experienced a moderate progress toward indus trialization prior to 1940, which turned into a sweeping expansion in the period 1940-1947• Underlying this growth was the enormous expansion of war production in this general area, in addition to industrial decentralization and popu lation shifts of the nation. The importance of this devel opment cannot be over-emphasized. By continued industrial expansion, the State becomes gradually more self-sufficient and varied employment is provided for the expanding popula tion. The resulting advantages are lower costs of living and increased earning power.
Although present manufacturing output (exclusive of smelting) is.running at an annual rate of about $140,000,000 the State cannot be classified as an industrial state. The manufacturing volume of Arizona is the result of many small industries; and imports of manufactured goods (excluding petroleum and its products) rank high among total imports, accounting for 50 per cent of their value (see Table T ill).
Arizona Highways. X H 7 (November 1948), 7. 36
Motor registration has risen $0 per cent in Arizona since the war, now totaling some 240,000 vehicles. Imports of motor vehicles and parts amounted to about 30,000 tons in 1948 with a value of approximately $58,000,000. Motor fuel consumption increased proportionately. The 1948 im ports of motor fuel were 651,138 tons worth $54,226,800.
In addition the State imports 530,000 tons of various pe troleum products, made up as follows: 426,000 tons of fuel, road and petroleum residual oils worth over $8,520,000; 20,000 tons of lubricating oils and greases valued at $378,000; and 84,000 tons of other petroleum products worth $4,620,000. About 70 per cent of the total imports of these products came by rail and the remainder by truck. The State’s export and re-export of these products were negli g ib le .
Due to the character of these products, the transporta tion media w ill vary from time to time. Shipper and re ceiver are in position to take full advantage of fluctuating freight rates between truck and rail, especially for short h a u ls .
Cement imports amounted to 346,000 tons in 1948 with a value of $7,266,000. Refrigerators, washing machines, and various other electrical equipment amounted to about
$21,000,000 in imports while $5,000,000 worth of building materials (other than lumber) was shipped into Arizona.
Various chemicals and fertilizers were imported in
great quantities. Some 30,000 tons of waste material for 37 remelting entered the State, and an equal amount of scrap iron and steel was exported. Numerous other manufactured commodities are imported each year, data for which are but fragmentary.
Most important among exports of manufactures are ship ments of copper blisters; 355*000 tons worth $78,000,000 were shipped out in 1948. Added to the outflow were 14,000 tons of explosives valued at $4,200,000 and about 8,500 1 tons of ice worth $150,000.
Finished manufactures are exported from Arizona in considerable variety, but the total amount involved is rela tively insignificant in relation to total exports of the
State and to imports of finished products. There were ex ports of about 800,000 tons of manufactured and miscellane
ous products in 1948 compared with imports of over 2,500,000 2 tons—leaving net imports of about 1,700,000 tons.
Truck shipments account for approximately 30 per cent of the total imports of petroleum and its products. Of
other manufactures, around 12 per cent are brought in by
trucks; beverages, various processed food products, and
household goods constitute most of this 12 per cent. Rail shipments of machinery, electrical equipment and materials account for almost 100 per cent of the total imports of these products. 1
1. Of. Table VII. p. 34 ante.
2. Interstate Commerce Commission, op. cit. TABLE VIII
MAJOR IMPORTS OF ARIZONA (Ranked A ccording to V a lu e )1
Per cent, Per cen t W eight o f o f Group V alue (short tons) total value total weight
Principal manufactures* $89,761,500 519,100 3 4 .7 1 0 .4 Other mfrs. & misc.** 40,000,000 250,000 15.42 4 .8
Total manufactures $129,761,500 769,100 5 0 .1 2 1 5 .2
Petroleum & prod. 67,744,800 1,081,138 26.2 2 1 .6 L iv e s to c k 20,000,000 50,000 7 .7 2 1 .0 Forest prod. 16,360,000 307,000 6 .3 2 6 .2 Agric. prod.*** 1 4 ,0 0 0 ,0 0 0 1 0 0 ,0 0 0 5 .4 2 .0 Mining prod. 1 1 ,0 0 0 ,0 0 0 2 ,7 0 0 ,0 0 0 4 .2 4 5 4 .0
Total all prod. $258,865,300 5,007,238 1 0 0 .0 0 1 0 0 .0 0
*Includes automobiles, various building materials, paper and paper products, sugar, soap, machinery, etc. **Estimate. Includes agricultural implements and parts, beverages, rail equipment and parts, etc. ***Estimate. Includes corn, flour, fruits, berries, other processed products of agriculture. 1
1. U.S. Bureau of Mines, op. cit. Department of Mineral Resources, op. pit. U.S. Dept, of Agriculture, The Federal Crop and Livestock Reporting Service for Arizona. Interstate Commerce Com., op. c it. %rizona highway Dept7, op. c it. TABLE IX
INTERSTATE AND FOREIGN COMMERCE OF ARIZONA1 (By Method of Transportation in Per cent of Total, using Gross Figures) 1
Inbound Outbound Commodity R a il . Truck R a il Truck
Mineral products 1 0 0 .0 * 1 0 0 .0 * Agrio. products (excluding liv e s t o c k ) 76.5 23.5 87.9 1 2 .1
Livestock & products 8 8 .0 1 2 .0 6 2 .7 3 7 .3 Forest products 97.0 3 .0 9 3 .0 7 .0 Manufactures & misc. (including petroleum and products) 7 4 .5 2 5 .5 ...... 7 9 .6 2 0 .4
*Truck shipments amount to less than 1/10 of 1 per cent.
1. Interstate Commerce Commission, op. c it. Arizona Highway Department, op. c i t . CHAPTER YI
TRADE WITH MEXICO
Across the international boundaries to the south are important markets for Arizona products. The Mexican states of Sonora, Sinaloa, Durango, and Nayarit are wealthy in natural resources but lack technical equipment and construc tion material. This area adjoins the southern border of Arizona, and material entering it must come from or at least pass through the State. Data are not available as to the amount of Arizona’s participation in the trade through the State’s customs districts, but it is probable that a greater part of this flow originates or terminates in Arizona.
As Table X indicates, vegetables and beverages account for about $0 per cent of the flow into Arizona. Metals and manufactures amount to almost 30 per cent of total imports from Mexico over the past two years. Of Arizona exports to
Mexico, machinery and vehicles account for over 50 per cent while various manufactures and finished products account for another 30 per cent. Exports to Mexico in 1948 declined considerably from the previous year, but imports rose.
Table X gives a comparison of import and export fig ures for 1947 and 1948. TABLE X
TRADE WITH MEXICO1
Im ports E xp orts Commodity group 1947 1948 1947 1948
Animals & prod., edible $ 4 ,4 9 6 ,2 4 9 $ 6,162,666 $ 804,680 $ 4 4 5 ,6 6 4 " , inedible 1 9 6,139 282,047 120,351 60,619 Vegetables, beverages 18,014,558 2 1 ,4 8 9 ,8 9 2 1 ,2 9 0 ,3 9 1 6 2 7 ,7 5 4 Vegetable prod., inedible 221,255. 704,615 794,891 6 4 4 ,2 3 4 T extiles & manufactures 4 6 ,8 2 1 7 9 ,2 7 5 515,945 391,071 Wood & paper 1 4 1 ,8 6 7 2 5 ,2 5 4 1 ,5 9 9 ,3 2 0 1 ,5 5 2 ,5 5 6 Non-metallic minerals 8 2 2,197 1 ,0 2 8 ,5 4 6 3 ,9 2 7 ,3 7 4 3 ,1 3 3 ,4 5 2 Metals & manufactures 1 1 ,7 9 3 ,0 7 0 1 3 ,8 7 2 ,8 5 7 7 ,0 3 8 ,2 0 0 4 ,6 2 5 ,5 9 6 Machinery & vehicles 13,489 68,459 2 2 ,0 0 6 ,7 3 5 1 7 ,1 0 8 ,7 8 7 Chemicals & products 1,215 16,045 1 ,8 5 2 ,4 1 9 1 ,4 2 8 ,0 9 1 M iscellaneous 344,504 282,893 1 ,2 8 3 ,5 9 8 669,845
T o ta l $36,091,364 $44,012,549 $41,233,904 $30,687,669
1. U.S. Exports of Domestic Merchandise and Imports for Consumption of Mer chandise by Commodity Groups through the Customs D istricts of Arizona; information through the courtesy of Mr. Minton Moore, Phoenix. TABLE XI
ARIZONA EXPORTS AND IMPORTS, 1948
Volume (in OOO's of short tons) Value (in OOO’s of $) Gross Net Gross Net______in- out- in- out- " in- out- in- out- Commodity bound bound bound bound bound bound bound bound
Mineral Products Copper ore & concentrate 2,313*6 41,283.6 3 8 ,9 7 0 9 ,6 7 2 .1 1 7 2 ,6 0 8 .1 1 6 2 ,9 3 6 Lead ore & concentrate 45*6 74.6 29 1 5 ,7 2 4 2 5 ,7 2 4 1 0 ,0 0 0 Z in c ore & concentrate 60.4 113.9 5 3 .5 1 5 ,8 0 0 2 9 ,8 0 0 1 4 ,0 0 0 Bituminous coal 27.4 2 7 .4 1 8 3 .8 1 8 3 .8 Iron ore 9*9 9 .9 n .a . n .a . Clay 3.5 82.3 7 8 .8 8 .7 2 0 5 .7 197 Stone & rock 44 64 20 66 96 30 Asphalt 38 .4 3 7 .6 418 5 .5 4 1 2 .5 S a lt 1 5 .1 1 5 .1 44 44 Sulphur 26.5 2 6 .5 5 0 3 .5 5 0 3 .5 Products of mines n.o.s. 185______220 35 1 0 .0 0 0 * 1 2 .0 0 0 * 2.000*
T o ta l 2 ,7 6 9 41, 838.8 116.5 39,186.3 52,420.1 2 4 0 ,4 3 9 .3 1 ,1 4 3 .8 1 8 9 ,1 6 3 TABLE XE (oont.)
Volume ( in 0 0 0 ‘s of short tons) Value (in 000‘s of $) : ' G ross N et Gross : Net i n o u t i n - o u t in o u t i n o u t Commodity bound bound bound bound bound bound bound bound
Agricultural Products L e ttu c e 3 2 1 3 .5 2 1 0 .5 1 3 5 2 1 ,3 0 0 2 1 ,0 0 0 Cantaloups & ... ** melons n.o.s. 9 8 .9 9 8 .9 6 ,6 1 4 6 ,6 1 4 Watermelons «5 1 2 .5 12 25 675 650 C otton 30 9 4 .4 6 4 .4 1 8 ,0 0 0 5 8 ,0 0 0 4 0 ,0 0 0 Cottonseed & p rod . 3 23 20 230 1 ,6 5 0 1 ,4 2 0 Barley & rye 23 , 1 0 8 .5 8 5 .5 1 ,3 8 0 6 ,3 4 5 4 ,9 6 5 Sorghums 1 1 .6 5 1 .8 4 0 .2 580 2 ,6 4 4 2 ,0 6 4 Wheat 3 .9 7 .3 3 .4 400 754 354 Hay 6 .7 3 9 .3 3 2 .6 140 790 650 Citrus fruits* 1.6 65 6 3 .4 200 2 ,7 0 0 2 ,5 0 0 Cabbage .1 7 6 .9 5 365 360 C e le r y .1 8 .1 8 7 500 493 O nions 1 .1 8 .1 7 95 750 655 P o ta to e s 1 8 .4 3 7 .6 1 9 .2 1 ,3 8 8 .5 2 ,9 0 0 1 ,5 1 1 .5 F la x se e d ** 2 8 .7 2 8 .7 6 ,3 6 0 6 ,3 6 0 Fruits,-n.o.s. 1 .5 1 .5 375 375 Cattle & calves 50 125 75 2 0 ,0 0 0 50,185 30 ,1 8 5 Wool & mohair 1 1 1 ,0 0 0 1 ,0 0 0 Sheep 8 12 4 350 525 175 Hides,skins & p e l t s 2 2 1 ,0 0 0 1 ,0 0 0 Poultry & prod. 1 .5 1 .5 n .a . n .a . Meat 12 4 8 9 ,8 8 0 3 ,2 9 6 6 ,5 8 4
T o ta l 1 7 6 .0 9 4 7 .7 1 1 .0 7 8 2 .7 5 3 ,3 5 5 .5 1 6 8 ,3 5 3 . 6 ,9 5 9 1 2 1 ,9 5 6 .5 TABLE XE (cont.}
Volume (in 000' s of short tons) Value (in 000's of $i> G ross H et Gross Net in o u t in o u t i n o u t in o u t Commodity bound bound bound bound bound bound bound bound
Manufactures and Miscellaneous P rod u cts
Motor vehicles 30 30 58,000 58,500 Motor f u e l 6 5 1 .1 6 5 1 .1 54,226.8 54,226.8 Petroleum prod. a . o . s . 530 530 1 3 ,5 1 8 1 3 ,5 1 8 Cement 347 1 346 7 ,2 8 7 21 7 ,2 6 6 Elec, equip., p a r ts & m achinery 1 1 .5 .5 11 2 1 ,9 0 0 900 2 1 ,0 0 0 Bldg.material (excl.lbr.) 26 1 25 5 ,2 0 0 200 5 ,0 0 0 Fertilizers 23 4 .5 1 8 .5 n .a . n .a . C hem icals n.o.s* 29 9 20 2 ,9 0 0 900 2 ,0 0 0 Copper blisters 3 -5 3 5 8 .5 355 760 7 8 ,7 6 0 7 8 ,0 0 0 E x p lo s iv e s 10 24 14 3 ,0 0 0 7 ,2 0 0 4 ,2 0 0 I c e 1 9 .5 8 .5 20 170 150 Paper & prod., 24 .2 2 3 .8 264 2. 2 2 6 1 .8 Other prod. 500 150 350 2 5 0 ,0 0 0 75 ,0 0 0 1 7 5 ,0 0 0
T o ta l 2 ,1 8 6 .1 5 5 8 .2 3 7 7 .5 163, 153.2 82 ,3 5 0 2 ,0 0 5 .4 4 1 7 ,0 7 5 .8 3 3 6 ,2 7 2 .6 TABLE ZI (cont.) Volume (in OOP's of short tons) ______Value (in OOP's of $) G ross N et G ross Net i n - o u t - i n - o u t- i n - o u t- i n - o u t- Commodity bound bound bound bound bound bound bound bound
F o r e st P rod ucts
Lumber & lath 180 1 5 7 .5 2 2 .5 1 1 ,3 6 0 1 0 ,5 0 0 860 Wooden posts, p o le s & p i l i n g s 55 55 2 ,0 0 0 2 ,0 0 0 Boxes & crates 15 15 750 750 Miso. forestry - p ro d . 72 15 57 3,000 500 2,500
T o ta l 307 1 8 7 .5 1 3 4 .5 15 1 6 ,3 6 0 1 1 ,7 5 0 5 ,3 6 0 750 GRAND TOTAL 5,438.1 43,532.2 40,361.5 583.695.5 394,219.5 2 ,2 6 7 .4 5 3 9 ,2 1 1 .4 ...... 3 4 9 ,7 3 5 .4
^Estimate **Negligible n.o.s. = not otherwise specified n.a. = not available
1. U.S. Bureau of Mines, op. c it. Interstate Commerce' Commission, op. cit. Arizona Highway Department, op. c it. U.S. Department of Agriculture, TheJfederal Crop and Livestock Reporting Service for Arizona. CHAPTER Y II
CONCLUSION
Although Arizona trade with foreign countries is neg ligib le, the State competes keenly with other countries in the mineral markets of the United States. The tariff policies of our country, therefore, have an important bear ing on the mining industry of Arizona, Favorable trade agreements with other nations in certain instances have had an adverse effect on the State's economy. This may be due to the concentration of employment and capital in a few in dustries in the State, a situation which leaves Arizona vulnerable to cyclical fluctuations and the impact of foreign competition.
Expansion of the manufacturing and processing indus tries appears desirable. In many fields the State has abun dant resources of raw materials, yet little has been done to develop these advantages more fully.
Knowledge of the balance of trade of the State is uncertain due to insufficient available information for manufactures and miscellaneous products imported. Consider
ing the data presented earlier in this discussion, it is
indicated that exports of the State exceed imports in both tonnage and value. Tourist traffic is another important source of income for Arizona. An estimated $100,000,000 is grossed annu ally from this source.
The balance of payment is difficult to ascertain.
Flow of investments by Arizonans to out-of-state enterprises and by non-residents to Arizona enterprises enters the pic ture, This flow is affected by profitableness of the State * industries in comparison with out-of-state and foreign in vestments. The Southwestern states1 share in the total income payments of the nation increased one-fifth from 1929 to 1947. Income from all sources other than governmental advanced by a markedly larger proportion in the Southwest than in the country as a whole. As compared with the na tional increase of 1 1/3, total income payments expanded two-fold in Arizona. With a population increase of only
1 l/2 over the same period, this indicates a substantial 2 increase in total and per-capita income. Moderate pro gress toward industrialization partially accounts for this
expansion of income.
Increased growth industrially would improve further the income position of the State's population. This, in turn, would mean more efficient use of transportation
I"! Interview with Mr. W.B. Chamberlain, Greater Arizona, Inc., Phoenix.
2. United States Department of Commerce, Survey of Current Business (Washington, D.C.: U .S..Department of Commerce, July 1949). 47 facilities and lower freight charges. Industrial diversity would permit more varied employment for a larger labor force and so help to stabilize the State’s economy. 'While the balance of payments is difficult to deter mine, it is not likely to become adverse to Arizona so long as the rich natural resources are abundant and the tourist
traffic thrives. However, there is need for prompt and de
cisive action by Arizona business firms and governmental
bodies to remove existing obstacles and otherwise encourage
the location of industries within the State in order to foster industrial growth and provide employment for an ex panding population. BIBLIOGRAPHY
Government Publications
Interstate Commerce Commission, Bureau of Transport Econom ics and Statistics, Statement No. 0,-550 (SCS). Washington, D.C.: Government Printing O ffice, June 1 9 4 9 . United States Bureau of Mines, Minerals Yearbook. Washing ton, D.C.: Government Printing Office, July 1948. United States Department of Agriculture, Bureau of Agri cultural Economics, The Farm Income Situation. Washington, D.C.: Government" Printing O ffice, February 194 9 . United States Department of Agriculture, Bureau of Agri cultural Economics, The Federal Crop and Livestock Reporting Service for Arizona. Phoenix: U.S. Depart ment of Agriculture"," February 1949.
United States Department of Commerce, Survey of Current Business. Washington, D.C.: U.S. Department of Com merce, July 1949.
State Publications
Arizona Agriculture. 1949. Tucson: University of Arizona Experiment Station Bulletin 220, January 1949.
Arizona Highway Department, Highway Planning Survey. Phoenix: Arizona Highway Department, I94FI
Department of Mineral Resources, Annual Report. Phoenix: Arizona State Department of Mineral Resources. June 1949. In itial Report of the Governor's Industrial Development Committee ."Report No. 1. Phoenix: Chamber of CommA-rnA July 15, 1949. 49
Periodicals
Arizona Annual, 1948 ed. Phoenix: Greater Arizona, Inc.
Arizona Highways , November 1948. Phoenix: Arizona Highway Department.
Arizona Statistical Review. 1948 ed. Phoenix: Valley Na- tTonal Bank.
Arizona Stockman, January-February 1949. Phoenix: J.F. F T n ter, P u b lis h e r .
Newspapers
Arizona Daily Star (Tucson), September 10, 1949.
In te r v ie w s
American Smelting Company, Tucson.
Mr. W.B. Chamberlain, Greater Arizona, Inc., Phoenix.
Mr. Charles H. Dunning, Director, Department of Mineral Resources, State of Arizona, Phoenix.
Employment Security Commission of Arizona, Phoenix. Graham Paper Company, T ucson.
Mr. Minton Moore, Valley National Bank, Phoenix.
Mulcahy Lumber Company, Tucson. Shell Oil Company, Tucson.
Albert Steinfeld Company, Tucson.
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