Full text of Review (Federal Reserve Bank of Dallas) : April 1, 1953

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MONGJrHLGJr

REVIEW
FEDERAL

RES E R V E

BANK

o

DALLAS, TEXAS

1'01.38, No.4

F

DALLAS
April 1, 1953

ELECTRIC UTILITIES IN THE SOUTHWEST
P. E.

COLDWELL, Jndustrial Economist
Federal Reserve Bank of Dallas

1f you are one of an estimated 2,950,000 consumers in the
Southwest who turn a switch to light a room, make your
cofTec, heat your oven, or operate hundreds of other electric
appliances, you have at your disposal the product of a billion
dollar industry which in 1952 comma nded the services of
approximately 23,000 employees and received an estimated
$350,000,000 operating revenue. The electric utilities of the
Southwest and of the Nation comprise one of our largest
service industries. In few other businesses are the rewards so
small and public responsibility so large. The people of the
Southwest have learned to use electric energy and are most
vocal in their complaints if that energy is not delivered when
and as they desire it. Though the industry is important from
the standpoint of providing employment and payrolls, it is
primarily important because of the service which it renders.
Consequently, it is the service characteristics of the indnstry
which are to be discussed in this article.

The choice of the area covered in this article was dictated
by the availability of data from the Fort Worth Regional
Office of the Federal Power Commission and the desire to
conform as closely as possible to the limits of the Eleventh
Federal Reserve District. Because of a lack of complete data,
the Arizona section cannot be given as thorou gh treatmen t as
the rest of the territory, which is referred to as the south·
western area.
The Companies and Their Plants

Withi,) this southwestern area as defined above, there are
75 operating utilities and 25 industrial companies owning
generating plants which are tied into the public supply
system. Of the 75 utilities, 49 are municipally owned, 17 are
privately owncd, 6 are Federal or state projects, and 3 arc
cooperatives. There are, of course, man y more cooperatives
which produce no electric energy but, instead, buy all required
energy from other utilities.

Fourteen of the 17 private electric systems have operating
revenues of over $1,000,000 per y.ear. When combined, these
14 systems had a total net utility plant, less reserves, worth
$1,013,512,776 in 1951: Their total capitalization was
$1,017,000,000, of which $555,789,000, or 55 percent, was in
long·term debt. The net income for these 14 systems in 1951
was $50,285,312, or 5 percent of the total investment. Com·
paring 1951 to 1950, their total investment had increased 12
percent, total capitalization had risen 14 percent, and nst
income went up 4 percent. One company had a net plant in·
vestment of over $150,000,000 in 1951.
The importance of these 14 systems can hardly be over·
emphasized. Not only are they the largest utilities - they
conduct nearly 88 percent of the total electric business in the
area - but they are also the backbone of all industrial
activity in the area. These utilities in 1952 employed 20,451
workers and paid them $74,172,357. This represents a 17-percent increase in payroll since 1950. There are also two large
municipal systems and one large state electric system which
provided employment for an additional 1,586 workers and
payrolls of $5,471,150 in 1952.
As of June 30, 1952, the 100 utilities and electric generating
industrial companies of the Southwest operated 199 gener·
ating plants with a total rated capacity of 5,016,083 kilowatts.
In addition, there are 19 more plants under construction,
which will have a rated capacity of 1,385,520 kilowatts. In all,
then, the total rated generating capacity of the 218 plant~
will be 6,401,603 kilowatts. It must be emphasized that the
actual capability . of such plants is usually about 15 to 25
percent above rated capacity, although no fixed percent can
be applied. Experience alone shows thc capability of a plant.
Electric energy is produced by oue of three major methods.
Tt may be produced by falling water (hydroelectric), b)
steam generation, or by internal·combustion plants. Hydro·
electric plants produce electricity by use of turbines which an

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

46

MONTHLY BUSINESS REVIEW

LARGE ELECTRIC GENERATING PLANTS IN THE SOUTHWEST

.--~_ .. --.J

''''----L.-I

o

•

~.

A Plant,
•

..

A

of 100,000 KW or over capacity

Pion .. of 50-100,000 KW capacity

I:l. Plonts of
o Plants of

100,000 KW or more under construction
50-100,000 KW under construction

rotated by the force of water hittin g their blades. To create
thi, falling water force, dams are constructed on rivers and
lakes, and penstocks carry the water to the power house and,
thus, activate the turbines, which turn the electric generators
coupled to them. Because of the necessity of constructing
costly dams to impound large quantities of water used in the
operation of such plants, the installed cost per kilowatt of
capacity is much greater than for other types of electric
generation. Furthermore, these plants ordinarily do not provide a dependable source of power because of a lack of a
constant water runoff, which is necess~ry in th eir operation .
In the southwest area, steam generating stations, which
offer a more dependable source of power and which take
advantage of the cheapness and availability of natural gas
and lignite as fuels, are in general use. Moreover, the cheaper
building costs by use of an outdoor type of construction have
contributed further to the economy of such plants. In steam
generating stations, electrici ty is generated by heating water
to steam and us ing this steam pressure to turn the generators.
The steam pressure acts in the same capacity as the falling
water pressure for h ydroelectric plants.
Internal·combustion generating plants use a gasoline or
Diesel engine to turn the generators. Such plants were m uch
more popular 30 years ago. Today, their use is r estricted to
areas of small loads , i.e., less than 10,000 kilowatts, and to
stand.by plants for meeting sudden demands for energy over
a short period of time. The hi gher costs of operation and restricted size of units preclude use of this method for large
plants. Conversely though, the cheaper construction costs
for plsnts where small amounts of energy are required make

internal-combustion plants adaptable for some industrial and
small community usea.
Of the 199 plants in service as of June 30, 1952, 89 are
steam plants with a capacity of 4,:W5,31l7 kilowatts, 117 are
internal-combustion plants with a rated capacity oJ 251,266
kilowatts, and 23 are hydroelectric generating plants which
have a rated capacity of 369,430 kilowatts. The ratio of
steam, internal -combustion , and hydroelectric capacities is
an interestin g characteristic of the southwestern area . While
over 88 percent of all generating capacity in this area comes
from steam plants, only 72 percent of the United States
generation comes from that source. Of the capacity of the new
plants under construction, 95 percent will be steam electric,
4 percent will be hydroelectric, and 1 percent will be internal
combustio n. On the basis of ownership, the 17 private utility
systems accounted for abo ut 93 percent of the total capacity
on June 30, 1952. There are 44 plants in operatio n or und er
construction in the area which have a rater! generati ng
capaci ty of mo re than 50,000 kilowatts each.

Jndicative of the growth of electric facilities in thi s area
are the changes in the rated generating capacities since 1920.
Total plant gener ating capacities increased 628 per cent fronl
1920 to 1930. From 1930 to 1940, this capacity increased 39
percent; and in the next decade, generating capacity increased 127 perrent. However, the stimuli of greater industrialization and increased pop ulation sp urred plant construe- 0111
tion in this area so that from 1950 to 1952, generating capac· ,
ity increased 46 percent. Thus, from 1920 to 1952, generating
capac ity increased 3,258 percent. It is interesting that of the
5,016,083 kilowatts of capacity in service on Ju ne 30, 1952,

47

MONTHLY BUSINESS REVIEW

only 30 percent was constructed before 1940 and 68 pe!"cent
before 1950.
As of December 31, 1952, the 14 major private utilities
operated generating plants with total rated capacities of
3.845,066 kilowatts, of which 346,525 kilowatts were leased
or purchased 011 a firm contract basis from other utilities in
the area. The total generating capacities of the plants of these
14 utilities haye increased 14 percent above their 1951 total.
In 1951, the companies' plants comprised 86 percent of the
entire generating capacity of the area. The two large municipal utilities and the state electric system provided an additional 378,22R kilowatts. The total for all systems reporting
over $1,000,000 revenue in 1952 was 4,050,566 kilowatts of
capacity.
In the part of the Arizona section of the District pictured
on the map, which is excluded from the southwestern area,
there were seven electric systems in operation in 1952. Of
these, three are private electric systems, one is an industrial
system, two are cooperatives, and one is a Federal system.
Of the three private systems, there are two large electric
utilities, with 1951 net incomes of $1,902,481 and total net
utility plants worth $38,821,577.
The total rated generating capacity in this area of Arizona
in 19.52 was 127,547 kilowatts, of which 66 percent was steam
capacity and 34 percent was internal·combustion capacity.
There are a total of 16 plants in operation. Private utilities
own seven plants with 44 percent of the total capacity, an industrial company owns five plants totaling 46 percent of the
area's capacity, and four publicly owncd plants account for
the remaining 10 percent.

ELECTRIC GENERATION CAPACITY
IN THE SOUTHWEST
NI LLlON!

or I(ILOWUTS

M I LLIONS OF 1(1LOWATT

1

6
5

I I: 4

'/,/I

3

;~

Y:':',;'

2
I -1920
SOURCE Ftdllol

5

TOT~

4

o

,

6

~
, .. ---,.

'

192.5

-" I

19:30

_----------1

INTERNtroliN~

--COMBUSTION
--.--. "
1935

1940

HYDRO

..........

Recently, the loop system of distribution lines has found
considerable emphasis. Under this system, a city or area is
served from a loop of high voltage Ii ncs which cncircle the
area. Alternate sources of power are connected at points in
this loop so that in the event of a plant breakdown or a break
in transmission wires the area of blackout is minimized. Of
course, the larger the system or cooperating systcms, the
more numerous will be the alternate sources available for
emergency interconnection. More will be said of this cooperation at a later point.
Thus, from this intricale system of generating plants, transmission lines, substations, and distribution lines, the electricity is finally available to the customer for his use 24 hours
a day. Of course, the charge for the service depends upon the
type and size of the customer's load. Most electric utilities
divide lloeir ~Ollswners into five major classes: rural, residential, commercial, industrial, and other (includes street
railways, street lighting, municipal use, etc.). How important
each of the classes is, relative to the total, depends upon the
measurement used. To obtain a full picture of the importance
of eacb, it is necessary to consider these classes from the
slandpoin t of number of customers, kilowatt-hour sales, and
dollar sales. To the utilities, both of the latter measures are
of major significance.
\Vhile the number of consumers may mean little in the
sales of electric energy, it does give an indication of utility
distribution and accounting costs and the growth aud usage
or such energy. In the Southwestern area in 1951, there were
approximately 2,791,000 customers, of which 69 percent
were residential; 16 percent, rural; 10 percent, commercial;
and 5 percent, all other classes. Since the end of World War
IT, the number of residential customers has increased 59
percent, the number of rural customers has increased 143
percent, and the number of commercial customers has risen
52 percent.

3

ElECTRIC UTILITY CUSTOMERS IN THE SOUTHWEST

2

Year

STEAM

I
-1

tiOll. Further step·down distrilmtion transformers on city
poles convert the electricity to the correct voltage for home
nse. From the substation, distribution lines take the electricity to all parts of the city.

I

1951 ............. . ........ .
1950 ............ . ........ . .
1945 .................... . ..

Rural

Residential

Commercial

.498,652
.498,621
205,.498

1,935,526
1,815,940
1,218,726

343,928
331.569
226,529

...

.....

o

SOU RCE: Federal Power Commission, Fort Worth Regional Offke.

1950 19:52

p~ .. ., GemmlulD~

Distribution and Consumption of Electric Energy

The generation of electric energy is only part of the task
of getting electricity to the consumers. From the generating
plMnts. high-voltage transmission lines take the energy to the
lila rket areas. From these lines it is fed into substations, where
step·down transformers lower the voltage for local distribu-

In Texas alone. the number of residential consumers rose
from a 1940 total 'of 769,763 customers to a total of 1,045,356
customers in 1945 and an estimated total of 1,703,000 customers in 1950. This reneClS a greater percentage increase
than the growth in Texas populalion from 6,414,824 people
in 1940 to 7,711,194 people in 1950.
For the southwestern area under discussion, the number of
residential customers is, of course, the largest of any class
of customers. The nWllbcr of industrial customers is the

48

MONTHLY BUSINESS REVIEW

least of any of the major classifications. The 14 major utilities
in this area served 1,611,000 customers in 1947 and 2,146,000
in 1951. These 14 companies, therefore, accounted for 77
percent of the 2,791,000 customers in the southwestern area.
In order to gain a further insight into the relative im·
portance of the separate classes of customers, it is necessary
to trace the development and relative importance of these
classes as to consumption of electric energy and percent of
total revenue which each provides.
In analyzing the information on sales, it is apparent that
the industrial consumers not only have taken the greatest
amount of the sales of electric energy but also have shown
the largest increase in the use of electric energy. In the
1950·51 period, residential sales increased 20 percent; com·
mercial sales, 14 percent; rural sales, 19 percent; and indus·
trial sales, 28 percent. The net energy for all systems in the
southwestern area increased 94 percent from 1945 to 1950
and 19 percent from 1950 to 1951.
Considering the total net energy for all systems in 1951,
industrial customers consumed 42 percent; residential cus·
tomers, 15 percent; commercial customers, 19 percent; rural
customers, 4 percent; and all others, 7 percent. Losses accounted for the remaining 13 percent. Thu s, for the south·
western area, industrial sales are, indeed, a large percent of
the total. It must be remembered, however, that industrial
sales are more or less important to a system, depending upon
the development within its territory. One large utility sys·
tern's report for 1951 shows industrial sales to be 68 percent
of its total kilowatt·hour sales, while another company's
report indicates its indnstrial sales only 28 percent of the
total sales.
A division based on kilowatt· hour sales, however, overemphasizes the importance of the industrial load. The revenne
from the industrial sales may be less than from the residential
sales, even though the kilowatt·hours consumed are much
greater. In one company reporting industrial sales of 28

ELECTRIC ENERGY SALES
IN THE SOUTHWEST

percent of total kilowatt·hour sales, the revenue hom those
sales was only 14, percent of the total revenue; whereas, in thc
same report, residential sales amounting to only 31 percent of
kilowatt·hour sales provided 47 percent of the total revenue.
This anomaly may be explained by.. the fact that industrial
sales are usually at a lower average rate than residential sales
because larger quantities of eneFgy are consumed per cu.·
tomer in this class. Electric utility rates are designed so that
the average price per kilowatt·hour is lower as the amount of
energy consumed and the load factor are increased. In other
words, the industrial consumer uses his potential demand for
electricity a greater percentage of the time than does the
residential or commercial customer. In quite a few instances
where three shifts are employed in a particular industry, the
daily load factor may go as high as 70 to 80 percent. It is
almost needless to point out that tbe average residential con·
sumer seldom uses his maximum demand. As will be seen,
this very point is the main cause of one of the most difficult
problems which faces some of the electric companies of the
Southwest at the present time. Moreover, the possibility of an
industry installing its own power generating facilities also
tends to keep industrial rates at a lower level.
To emphasize this division of sales, it is of interest to con·
sider the 1952 sales record of the 14 largest private utility
companies in the area. A comparison of the percentages and
the actual sales figures shows the industrial customers to have
far exceeded the kilowatt·hour use of the other classes but
to have reached only third place in importance on the basis
of sales revenue. Total kilowatt-hour sales of these companies
increased 16 percent this past year. The industrial load has
shown the greatest increase, with residential and commercial
sales also showing considerable gains.
In addition, in 1952 the two large 'm unicipal systems and
the state system sold 1,682,578,000 kilowatt-hours of electric
energy for a total of $26,204,031. Thus, the 'total sales of all
large systems in the area in 1952 was 21,454,928,000 kilowatthours for $330,573,866.
In the Arizona section under discussion, industrial sales
are not nearly so important as in the southwestern area. I-Iow·
ever, private industrial companies own a much larger share
of the total capacity in this section than in the southwestern
area. In Arizona, kilowatt·hour sales to residential customers
in 1951 accounted for 11 percent; rural sales, 14 percent;
commercial sales, 40 perccnt; industrial sales, 6 percent; all
other sales, 13 percent; and losses, 16 percent. From 1945 to
1951, total kilowatt· hour sales in the Arizona section increased 72 percent, while the commercial sales increased 224
percent, the largest inrreasc of any of the customcr classes.
Moreover, commercial customers increased their percent of
the totahales from 21 percent in 1945 to 4,0 pereent- in·1951.
One other point should be considered in the division of
total energy, i.e., the losses of the electric systems in the area.
Losses are averaging approximately 13 perCe)lt of the net
energy for the systems. While this is not excessively high, it
does represent a fairly large proportion of the total and, in
fact, nearly equals the total energy use by all residential con·
sumers and exceeds the combined energy use of rural con·

MONTHLY BUSINESS REVIEW

49

DISTRIBUTION OF SALES IN 1952

DISTRIBUTION OF SALES IN 1952

FOURTEEN MAJOR UTILITIES

FOURTEEN MAJOR UTILITIES

sumers and those in the "other" category. The long distances
involved in transmitting electric energy in this area account
for most of these losses.

earned on property value and, indeed, on many other operating phases of the industry.

No discussion of elcctric facilities ill an area could be
considered complete without reference to the rural electric
cooperatives which have developed during the past 17 years.
Under the stimulus of their development, the percent of farms
electrificd in Texas increased from 2.4 percent in 1935 to 78.5
percent in 1950 and to nearly 90 percent in 1952. There are
78 rural electric cooperatives in Texas, of which only one
generates any electric energy. The remaining 77 buy all
energy requirements from the other utilities in the area. As
uf June 30, 1952, the 78 cooperatives in Texas operated
123,446 miles of line and served 296,922 customers. Their
lotal revenue for the year ended June 30, 1952, was
521,393,235.

While Texas utilities are regulated by their city councils,
the private electric utilities of the other states in the Southwest are subject to the jurisdiction of public utility commissions. Rcgulation of utilities under each method is approximately the same, but a more favorable rate of return
has been allowed under the Texas system as compared to the
commission systems of the other states. By statute, Texas
utilities have been allowed a maximum of an 8-percent rate of
return on valuation, whereas the commissions of the other
states have advocated a (i·percent rate of return. It must be
remembered that the mere allowance of a specific rate does
not guarantee that the utilities will, in fact, make that amount.
Instead, as noted before, the average returns havc been nearer
5 percent for the major utilities of this area.

The rural electric coopcratives have becn an important
adj unct to the electric systems of the area and have been
particularly effective in bringing electric energy to those
farmers beyond the more thickly settled areas. The privately
owned utilities ill the State have extended their systems to
farm arcas, wherc economically fcasible, but credit for serving the remaining areas should be given to the cooperatives.
Moreover, many of the private utilities were instrumental in
the development of the cooperatives, through the help wbich
they gave 011 engineering, construction, and supply of their
necessary power amI energy. The cuoperative development
wi It continue aud probably will expand as long as there are
farllls without the henefits of electric energy or as long as
farmers continue to increase their use of electricity.
Regulation

Olle uf the peculiarities which sets the electric industry
apart frolll all other industries, except other public utilities, is
the regulation to which the industry is suhjected. Private electric companies operating in Texas are regulated by the in,lividual .. itics in which they do business. Regulation takes the
form of a restriction on the pcrcent return which may he

Furthermore, at least six of the major private systems
operatc in more than one state and, thus, are subject to the
regulations of the Federal Power Commission. Some state
authorities have jurisdiction over cooperatives and municipally owned utilities. These utilities, though performing the
same function as their private companions, are not regulated
in some states with regard to rates, service, or operations.
City regulation of municipal utilities, of course, is effected
through ownership and operation of those utilities, but cooperatives are generally exempt from such stringent regulations_
There is also another Federal commission concerned with
the operations of some of the major private electric systems.
The regulatory powcrs resting with the Securities and Exchange Commission stem from the Public Utilities Holding
Company Act of 1935. Under this Act, uneconomic or nonintegrated utility holding companies are to be dissolved and
control is to pass to a broader group of investors. Of the 14
major private systems operating in this area, 13 were formerly members of utility holding companies, and one has al·
ways been independent. Of the 13 formerly under holding
company control, two were in the Engineers Public Service
Company system, three were Community Power &Light Com·

50

MONTHLY BUSINESS REVIEW

pany subsidiaries, five were associated with the Electric Bond
& Share Company, and three were in the Middle West Utilities
system.
After years of court battles and reorganization p lans submitted to the Securities and Exchange Commission, the five
holding companies represented so strongly in this area
moderated considerably their utility holdings. In other words,
the control of the operating companies has now been returned
to a level close to the area of operations. Today, it is still
possible to see the influence of holding company control in
the organization of seven of the major private electric utilitics
of the area. Three of these utilities are associated with the
Central & Southwest Corporation, three are members of the
Texas Utilities Company, and one is a subsidiary of the
Middle South Utilities Company. The remaining seven major
systems are independent of any holding company control.
Probably as a res ult of membership in such holding company systems, most of the utilities still under such control operate as integrated, interconnected systems. There are three
such formal systems now in operation in the southwestern
area. The North Texas Interconnected System, the Middle
South System, and the El Paso Power Pool are all formal,
interconnected systems. There are eleven utilities in these
three power pools, of which six are major utilitics of thc
southwestern area. Formal agreements and reports are filed
by some of these pools governing their operations and determining tile price which one utility must pay another for the
interchange of energy. There are other informal operating
pools in the southwestern area, but central-load dispatching
and formal price agreements are not used hy these informal
pools.
The function of these pools is to improve service in the
area in which the members operate. They were developed to
effect savings in the construction and usc of generating
plants. When peak loads occur in one area, energy from the
other systems may be purchased to meet the demand. Similarly, when a new and more efficient plant is placed in operation by one company in the pool, it is kept operating at full
capacity to replace and supplement the operations of the less
efficient units elsewhere in the pool. Other advantages stemming from this close cooperation come from the availability
of results from research projects and the possibilities of financial cooperation on joint projects. Although the latter has not
been exploited, it may be a real advantage if generati ng units
can be built to capacities of 500,000 kilowatts or more. Similarly, the long-line, high-voltage transmission line development also may offer new possibilities. Especially would this
appear feasible if further tests reveal it to he commercially
possible to construct 500,OOO·volt transmission lines.
Problems

The electric companies of the Southwest currently are
faced with some rather intricate problems. One of the foremost is the problem of a declining annual load factor and how
to get the customers to use a more constant amount of electricity. Illustrative of this problem are the difficulties confronting those utilities whose major loads are residential and

in whose territories industrial possibilities are comparativel y
small. The increasing use of electricity for air conditioning
in this area has push cd the peak demand in the summer
mon ths to extreme heights. It is estimated that for each room
air conditioner placed in service, the electric company serving that customer must install one kilowatt of generating
capacity. This, in itself, is not objectionable, because the
company then sells more of its pro duct - electric energy.
The difficulty is that such air conditioning is used only a few
months of the year. The rest of the year this new generating
equipment must stanel idle, replace obsolete equipment on the
line, or provide a backlog to allow repairs. Of course, the
last two uses take precedence. Eventually, though, constr uction could be so large that even new plants might stand idle in
the wintertime. The effective use of the equipment for some
of the companies on a yearly average is already below 50 percent. To the consumer this rnustmean higher rates to pay for
fixed charges on equipment which is called into use by the
customer only 3 to 4 rp.onths of the year, unless other loads
can be assumed during the winter months.
The 1952 operations of the 14 major private utilities in the
area show annual load factors ranging from 45.4 percent to
72.3 percent. Peak loads for these 14 companies aggregatc
ncarly 3,960,300 kilowatts. A load factor below 50 percent
must cause some concern, especiall y if this percent is declining.
So the problem is to find a business or home use for electric
energy which is exclusively a winter use. In other words, the
companies must find a load which could be placed on the line
in the winter and reduced or cut off in the summer. One of
the most obvious answers is in household heating. For some
time now, the electric industry has been working to develop
an electric heating method which would be competitive in
price with other methods now in use. If a heat pump or other
electric device could be made commercially feasible for home
use, it would add a winter load consistent with the air conditioning load in the summertime. Another solution is increased
industrialization to give stability to the load factor. Obviously, where large industrial plants are served, their steady
demands for electric energy greatly improve the average use
of capacity.
Some utility exec utives have seen the peak load shift frolll
summer to winter and back to summer again. They say it is
just a matter of time until new uses will bring the winter load
back into line with the present summer one. This "wait-andsee a ttitude" may be a reasonable outlook for those whose
utilities are well fortified with a large industrial load. However, for the utility which has 110 such load , the problem may
indeed become serious.
A second major problcm of the electric industry in the
Southwest is the difficulty of rising costs and slow rate adjustments. Throughout much of the past 15 years, the average
price of a kilowatt-hour of electric energy has decreased, even
though most other prices have doubled or tripled. The key to
this price stability is to be found in the great increases in
demand for electricity and in the actions of the utilities in
reducing costs and improving the efficiency of their oper-

~ONTHL Y

51

BUSINESS REVIEW

ations. With the quantity of energy sold increasing so rapidly,
the necessary profit per unit has declined. Nevertheless, can·
tinually rising costs have gradually eaten into this margin
so that recently some companies have been forced to ask for
rate increases. In Texas the rate adjustments may be fairly
rap.id, because individual cities control such requests. In
other states, though, a central commission governing all
utiliti es must approve the rate adjustments. This procedure is
often very slow and occasionally is so delayed as to make
another request necessary even before the first is granted. A
few utilities have city franchises in which rates are adjustable on a sliding scale when changes in certain types of taxes,
fuel costs, or commodity prices occur. These contracts may
obviate the necess ity for requesting rate increases to cover
such changes in costs.
An adequately trained supply of labor is another vexing
fJroblem confronting the electric utility industry of the Southwest. Even though stability and security benefits are high, it
is a continual battle to keep trained personnel on the electric
companies' payrolls. The time necessary to train some of the
skilled labor used by an electric company means a considerable investment on the part of the company. To lose that man
to another industry at the end of his training period is cer·
tainl y a reallosa. Part of the answer to this problem may lie
in thc educa ti on of young men to work toward a career with
an electric company.

Competition with other fuels is also gradually gaining at·
tention from utility executives. In each case where energy is
required, the question arises as to the use of coal, oil, gas, or
electricity. For many jobs, such as lighting, electric energy
has pre·empted the field. For other industrial and household
uses, electricity must compete with the other fuels. This competition depends primarily upon the relative prices, availability, dependability, and convenience of the various fuels.
1£ electric energy is to improve its competitive position, continued research for new appliances, steady prices, and increased availability will be necessary. The electric utilities of
the Southwest are doing an excellent job toward meeting these
requirements. For example, the development of a more
modern method of using low·cost lignite has recently rein·
troduced this fuel as a means of generating electric energy.

Another type of competitIOn IS of more concern to the
private electric utilities of the ation but might trouble those
of this area in the future. This competition is from municipal,
state, and Federally owned facilities. The problem has not
been serious in the Southwest, as a whole, because of a lack
of large publicly owned facilities. In other parts of the United
States, such as the Pacific Northwest, the problem is much
morc acute. In some ways, the pressure for lower rates and
the publicity auendant to the lower rates sometimes charged
by municipally owned utilities have caused all private utilities
considerable concern, although rate comparisons are mean·
ingless without comparable costs, especially tax liabilities.
Nevertheless, there seems to have developed a rather close
cooperation between the municipal, state, and private utilities
of this area.

Another one of the foremost problems of an electric company is the difficulty of forecasting the growth in its territory
for a period of 4 to 5 years in the future. This has been
especially so in the Southwest during the past decade or more.
Because constl"Uction of maj or generating facilities is a slow
process and because equipment orders for turbines must of
necessity be placed at least 2 years in advance of construction,
the need for intelligent forecasting is obvious. An error in
constructing too much is nearly as serious as constructing too
little. Because regulatory authorities will allow a utility to
earn a return only upon that equipment used or useful in its
operations, a surplus of capacity beyond that necessary for
the near future andlor reasonable reserves might be disallowed. Also, to retire older equipment for obsolescence before its useful life has been completed is a policy disturbing
both to the investors of the company and to the regulatory
authorities.
To underestimate the growth of its territory would leave a
utility short of needed capacity. Lacking any alternate means
of supply, the company might have a serious shortage of
power. This, of course, would crcate bad public relations
and, if carried to the extreme, might be the cause of cities
within its territory revoking the franchise and condemning
its property. Thus, an intelligent estimate of future growth is
necessary, and the utility executives must indeed be familiar
with all economic characteristics of their territories. The
ollicial might be correct in his estimates of population growth
and, yet, err in his estimates of the industrial development. A
mistake on either of these major customer classes would place
the utility in a difficult position.
Finally, the general problems of regulation are always
present in the life of an electric company official. The increasing number and complexity of required reports and the
necessity of defending its position relative to rates and service
keep an electric company constantly aware of its unique position. Furthermore, even if the above were not enough, the
strict control of the amount of return allowed is a real reminder of the regulation to which these companies are subjected. The overriding necessity for regulation of an industry
essentially monopolistic in its own field is the only real justification. This, however, is sufficient, as the abuses and dis·
criminatory policies which could occur without regulation
are more serious than are the difficulties which regulation
poses for the utilities. By a more uniform treatment of individual utilities and by reducing the bookkeeping proce·
dures for the reports, some relief probably could be granted
without destroying the effectiveness of the regulation.
The Future

The future for electric utilities in thc southwestern area is,
of course, inseparably interlinked with the economic and
population growth of the area. In terms of kilowatt· hours
sold, the future industrial development is most important. In
terms of revenue, the population and, therefore, the residential demand are of paramount interest. Included in the
latter are the possible changes in customer usage and the
number and types of electric appliances available in the

MONTHLY BUSINESS REVIEW

52

future. The companies of the Southwest already have made
their forecast through 1956 in the form of new generating
capacity on order, although their decisions are not irrevo·
cable; most such orders can be cancelled, or partially so (as
per prior agreement), with payment for work only up to the
time of cancellation.

PROPOSED EXPANSION IN GENERATING CAPACITY t
(In kilow(lth of nominol name.plate rating)

y

Year

1952 ••••....•...... ... . . .. .
1953 ..•••..•....... . ...•.. .

1954 ......... . .. .......... .
1955 ••••• . ... • ..•.•...•... .

1956 .......... . .......... . .

Steam

180,000

13,000

766,700
832,500

5.000

582,000
292,000

Total ..•...•......••.•... . 2,658,200
I

Internal
combustion

Hydro

61,500

833,200

35,000

867,500
582,000

28.600
18.000

Totol

193,000

125,100

The 14 major private companies alone are planning the
construction of plants aggregating 2,625,250 kilowatts by
1956. This will be a 68·percent increase over the combined
capacities of these companies as of December 31, 1952, and
represents 94 perccnt of the scheduled expansion for all
utilities.
In addition, the two major municipal utilities are planning
the construction of plants totaling 180,000 kilowatts capacity
by 1956. Combining these with the 14 private utilities means
an expansion of 2,805,250 kilowatts. As these figures arc
based on year·end 1952 reports, it would seem that even
greater construction is now envisaged than was planned in
July of 1952. Truly, these 17 systems could be called the
electric industry of the Southwest.

320,600

-2.796.300

As of June 3D, 1952.

SOURCEl Federal Power Commiuion, Fort Worth Regional Office.

The accompanying tahle indicates the future which the
utility executives believe to be in store for this area. By 1956,
the scheduled e"'pansion in electric facilities of 2,796,300
kilowatts will be a 56·percent increase over the 1952 capacity
in service. As indicated before, there are already under con·
struction plants whose aggregate capacities will reach
1,385,520 kilowatts. Their completion alone will raise the
Southwest's generating capacity to 6,401,603 kilowatts. The
additional 1,410,780 kilowatts planned for construction be·
fore the end of 1956 will boost the area's capacity to 7,812,383
kilowatts.
Evidently, the officials of most of the electric utility com·
panics are expecti ng a substantial growth in the area .
Whereas the combined expansion in generating capacity from
1951 to 1952 was 1,075,056 kilowatts, or a 27·percent in·
crease. these utilities are now planning an expansion of
1,893,700 kilowatts, or a 38'percent increase, by the end of
1954. Undoubtedly, a considerable part of this expansion is
planned to take care of the air conditioning sales in the next
few years. Another major cause for expansion is probably an
anticipated increase in industrial loads, especially in those
areas where defense plants either have just been completed or
are under construction.

In the section of Arizona not included in the above south·
western area, plans for generating capacity expansion indio
cate the construction of 27,000 kilowatts capacity in 1953
and an additional 50,000 kilowatts by 1954, raising the kilo·
watt capacity of tl,e area to 204,547 kilowatts by 1955. This is
60 percent above the present capacity of 127,547 kilowatts.
The future development of elcstric utilities is always tied
to the population growth in the area. During the past three
decades, population in the southwestern area under discus·
sion rose from 7,447,000 people in 1930 to 8,276,000 people
in 1940 and 9,774,000 people in 1950. On a percentage basis,
these gains were 11.1 percent from 1930 to 1940 and 18.1
percent from 1940 to 1950. In the same periods, the capacity
of electric generating plants in the area increased 39 percgnt
from 1930 to 1940 and 127 percent from 1940 to 1950. Popu.
lation estimates for 1955 range from 10,100,000 to 10,600,
000 people for this area. Furthermore, a careful stMY of
census figures would indicate that the rate of gain was larg@st
from 1945 to 1950 and particularly from 1949 to 1950. If
this rate continues, the higher estimate is likely to be correct.
All of the above discussion serves to point out some of the
problems in forecasting consumer loads. It also shows some
of the bases for the increase in generating capacity planned
for construction by 1956. Within the limits and difficulties of
forecasting, it is fairly clear that the electric utilities of this
area have tried to provide for its future growth. How well
their estimates will be fulfilled is a matter which only time
ea n determine.

MONTHLY BUSINESS REVIEW

REVIEW OF BUSINESS, AGRICULTURAL, AND

Sa les at reporting department
stores in the Eleventh Federal Reserve District during the first 2
weeks of March were 7 percent
above a yea r earlier; sales from
January 1 to mid-March showed the same year-to-year gain.
Charge accounts receivable at the end of February were up
6 percent from a year earlier, and instalment accounts outstanding, up 51 percent; department store inventories showed
a year-to-year ga in of 9 percent. Sales during February at
reporting furniture stores were about the same as a year ago.
Moderate to heavy rains over the District during March
greatl y improved the immediate outlook for agricultural pro·
duction this year. Prospects for winter wheat production arc
fair to excellent in north Texas but unfavorable in the principal producing cO\lnties of the northwest. Cotton planting is
complete in the Lower Rio Grande Valley and is making good
progress in south central Texas.
Ranges and pastures in the eastern half of the District arc
providing ample grazing, while prospects for reviving ranges
in the western sections were improved by recent rains. Livestock are making rapid gains in eastern areas. Cattle marketings during March were above a year ago. Farm commodity
prices in the District generalJ y held steady or increased during March.
Between February 18 and March 18, loans of weekly reporting mcmbcr banks in the District dcclined sli ghtly , due
partly to seasonal repayments. Investments declined somewhat during the 4 weeks. Total deposits of these banks rose,
reAecting principally expansion of deposits of individuals
and businesses. Gross demand deposits of all member banks
in the District averaged somewhat lower in February than
in January but higher than in February 1952.

53

FINANCIAL

CONDITIONS

Sales at reporting department
stores in this District during the 2·
week period ended March 14, 1953,
were 7 percent above the comparable
2·week period in 1952. Total sales
rrOnt January lthrough March 14, also were 7 percent above
the same period last year.
During the month of February, sales at these stores totaled
4 percent more than in February 1952, despite one less
bnsiness day, but were 7 percent below January sales. Percentagewise, the year-to-year gain was highest in some of the
durable lines. The homefurnishings departments registered
an increase of 8 percent in sales volume; principal gains in
this group were in the sales of major household appliances,
which showed an incrcase of 35 percent over a year ago, and
television sets and radios, which together rose 21 percent.
Sales of nondurables in February were 1 percent above a year
earlier. Large percentage gains were recorded among the
major wearing ·apparel lines, e.g., sales of women's and
misses' suits, up 16 percent; girls' wear, up 18 percent; and
lIlen's and boys' wear, up 7 percent.
At department stores doing both charge account and in·
stal.ment account business, the ratios of cash sales and of
charge account sales to total sales declined 1 percentage point
each from a year earlier to 35 percent and 50 percent, reo
spectively. The proportion of instalment sales rose from 13
percent to 15 percent of total sales.
Charge account collections during February were approxi .
mately the sa me as during February 1952. End-oI-month
charge accounts receivable, however, showed a year-to-year
gain of 6 percent. Instalment account collections compared

RETAil TRADE STATISTICS

Daily average crude oil production in the District during
the fi rst 3 weeks of March was a t the lowest level in 7 months,
reAecting principally the cutback in Texas allowables for that
month. Crude oi l stocks are sharply above a year ago, while
stocks of major refined products ha\'e been running below
year·earlier levels for several months. Drilling activity is
below a year ago.
The number of nonagricultural wage and salary workers
in the District in January was 4 percent above a year earlier.
Manufacturing employment was up 6 percent, while employment in finance and government showed ga ins of 7 percent
and 5 percent, respectively.
The value of construction contracts awarded in the Dis·
trict in February was 10 percent above January and 21 percent above a year earlier. The January-February tOlal was 25
percent above a year ago, with residential awards up 43
percent.

(Percentage chong e)

STOCKSI

NET SALES
Feb. 1953 from

2 mo. 1953

lin. of trode
by area

DEPARTMENT STORES
Total Eleventh District ........•.. ..

~~IFa~ ~~~j.l~i:::::::::::::::::::
EI Paso ••.....•.•.•...• • .. ..• . .
Fort Worth ..•. .........•....•..
Houston .......... ..•....••...•.
San Antonio ..• .... • •... .• .. ..• .
Shreveport, La ... .........•....•.
Waco ............•......•.....
Other cities ..•.•..........• . .. ..
FURNITURE STORES
10tol Eleventh District ..... .•• .. •..
Austin •.... .. .... . .... . . • ••.. . .
Dallas ...... . . . ... . .. . . . .•... . .
Houston ... . . ... •.........•• • . · •
Port Arthur .. ... .... . .. ... ......
San Antonio .. ..... . ............
Shreveport. La .. ... .......... . ...
HOUSEHOLD APPLIANCE STORES
Total Eleventh District ... ..........
001105 • • . . . . . • • • . • • • • • • • • . • • • . •

,

Feb. 195J from

feb.
1952

Jon.
1953

4

-7
-7

7

3
10

- I
7
6
8
-3
I

I

56

"

_4
-6
-9
_11
-7

-.

-7

-6

-8

12
-15

7

-2
11
-20
12

-12
I
_9

10
21

-19
-12

I Stockl at end of month.

Indicates change of leu than one' half of

1 percent.

compo with
2mo.1952

5
13
3
11
1
9
2
10

"3

feb.
1952
9
26

7

6
8
15
7
15
5
8

-.

JOI'I.

1953
9
15
8
9
7

•

10
12
8
5

- 6
11

1
_ 1
1

- 30

-4

- 2

MONTHLY BUSINESS REVIEW

S4

WHOLESALE TRADE STATISTICS

Eleventh Federal Reserve District

STOCKSlp

NET SAlESp

February 1953 from

February 1953 from

2 mo. 1953
camp . with February
2 mo. 195 2
1952

February

January

line of trod.

1952

1953

Dry goods ••••.•••••......•

-I

-4

2

22

3
_ 4
_ 4
-13
-2

-7

5

_4

Grocery Ifull·line wholesalers
not sponsoring groups) •••. •
Hardware .. •..••..... . •.. •

Industrial supplies .. .... . ....
M.tols ....... .. ...........
Tobacco products ... . .......
Wines and liquors ... .......
Wiring supplies, construction
moteriols distributors ... ...
1

""

7

-_4"

January

1953

5

"

5
- 10
-12

1

_9

-62
-6
12

22
-7
10

- 34

1
_9

I"

- 32

14

5

-27

-""

StockJ (It end of monflt.

p-Preliminory.
; Indicales change of III" than one·half of 1 percent.
SOURCE; United S'atll' Burnu of the Census.

with a year ago were up 1 percent, although instalment accounts outstanding had risen 51 percent. Based on the ratios
of collections during the month to receivables at the beginning of the month, the average pay-ont period on regular
charge accounts was 66 days - virtually the same rate as a
year earlier. The average collection period on instalment accounts during February was 16 months, compared with 11
months during February 1952_

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(19.47 • .49

=

Area

ADJUSTED'

feb. Jan. Dec. Feb. Feb. Jan. Dec. Feb.
1953 1953 1952 1952 1953 1953 1952 1952

SALES-Daily aVerage
Eleventh District ••••... ..•..
Dallas .....•.•.••.........
Houston •••••••••. ••• •• ••• •
STOCKS-End of month
Eleventh District • •• ••. .••• ••

Farmers in the District have indicated that they will plant
slightly higher acreages of sorghums and rice than were
seeded in 1952, according to a recent report of the United
States Department of Agriculture; acreages of oats, barley,
and flaxseed also are higher. The Department's first estimate
of cotton acreage will not be released nntil July 8.

Prospects for winter wheat production in north Texas are
reported fair to excellent. Recent rains provided enough
moisture to carry the crop weB along toward maturity. In
the principal producing counties in the northwest, however,
the condition of the crop continues unfavorable_ Sbowers
have improved the color of the crop and some fields are
starting to grow, but more rain is needed to maintain growth
and to permit full development_

100)

UNADJUSTED

1

As a result of moderate to heavy
rains during March in virtually all
scctions of the District, moisture
cond itions arc greatly improved and
in many sections arc adequate for
imm ediate needs. Farmers in the Low Rolling Plains and
Edwards Platean of Texas are now preparing land and expect
to plant normal acreages or spring crops. In northwestern
counties, rainfall has been generally light, but for the most
part it has been timely. In some central, northern, and castern
counties of Texas and in northern Louisiana, farmers need
more open weather to dry fields and permit completion of
corn and sorghum planting operations.

101
101
112

101
9"
115

215
206
248

93
94
100

125
119
143

129
127
14"

132p

122r

120

121r

133p 135r

14"

115
111
12"

130

122

130
127

Adjusted for seasonal variation.

r-Revised.
p-Preliminary,

Department store inventories rose seasonally 9 percent
during February and at the end of the month were 9 percent
greater than a year earlier. The inventory position is not considered by department store management to be excessive in
terms of sales or in relation to inventories a year ago_ A
prudent buying policy continued to be reflected, as stocks on
order at the end of February were 3 percent lower than at the
same time a year earlier and 9 percent nnder those reported
on order at the end of January.

Furniturc store sales during February at reporting stores
in the Distri<;.t declined 8 percent from January but were
about the same as in February 1952. Acconnts receivable
at the end of the month were 24 percent higher than on the
same date last year, while the volume of collections rose 5
percent. Inventories, although 1 percent higher than at the
end of January, were 6 percent lower than a year earlier_

Cotton planting has been completed in the Lower Rio
Grande Valley. Irrigati on water in that area is still short, but
general rains during March provided ample surface moisture
and the crop is reported to be making satisfactory growth_
Cotton planting permits were not required in the Valley this
year; hence, there is 110 accurate indication of the total
acreage planted. Private estimates are below the 1,000,000
acres that had been anticipated. Planting is nearing completion in the Corpus-Christi area and is making rapid progress in south central Texas counties and in the irrigated
sections of New Mexico and Arizona.
Developments in the commercial vegetable areas of Texas
were generally satisfactory during March, althongh rains
temporarily interrupted fi eld work. The early crops of cantaloupes and watermelons in the Lower Rio Grande Valley arc
showing promise of maturing by late April or early May.
Sweet corn harvest is expected to start the first week of April,
and an early tomato harvest is anticipated. Considerable
acreage of the late spring tomato crop in east Texas has been
transplanted. Planting of onions and potatoes is under way in
the Panhandle vegetable-producing area_
Ranges and pastures are reported to be producing green
feed in eastern sections of the District. In northwest Texas,
wheat fields provided some pasturage dnring March. In
western areas, however, grass is still very short, although
March rains improved tbe prospects for reviving the ranges_

55

MONTHLY BUSINESS REVIEW
LIVESTOCK RECEIPT S
(Number)

fORT WO RTH MARKET

SAN ANTONIO MARKET

February

February

January

February

1953

1952

1953

1953

February
1952

January

Clan
Cattle • • • •. ... .•

.42,874
11, 112

25,195

52,613
20,7.43
87,728
.(2,696

18,836
8,814
1, 773
II 1,257

19.385
13.053
6,311
17,448

21,.467

C(l lves •••• • •••. •
Hogs •••••••••• •

Sheep . . .. ... . ..
I

Indu des

50, 109
43,008

12,229
88.776
3.4.615

1953

12,420

Between February 18 and March
18, cash assets and deposits of the
weekly reporting member banks in
the District rose. Loans and investments declined. Reflecting principall y the net effect of these changes, total resources rose
slightly to 54,661,899,000.

18,832

gOlJh.

Loans declined $10,666,000, or less than 1 percent, during
4 weeks, with commercial, industrial, and agricultural
loans more than accoun ting for the total reduction. Commodity dealers, grai n and milling concerns, and food and
liquor establishments reduced outstanding bank borrowings
during most weeks. The decrease reflects, in part, seasonal
repayments. Retail and wholesale trade establishments, sales
finance companies, and manufacturers of metal and metal
products increased the amounts of their indebtedness to
these commercial banks.
I he

Livestock are making rapid gain s 011 the improved feed
supplies, and sup plemental feeding has been discontinued in
all but a few sections of west Texas where ranges and pastures are only now recovering following earl y March rains_
Shearing of sheep and goats is in progress in the Edwards
Plateau counties of Texas_ Marketings of cattle during March
were larger than a year ago, partly reflecting the increased
nwnbers of ca ttle and calves on farms and ranches. A substantial number of "distress" cattle have been marketed as a
result of an outbreak of "X" disease, reported to have resulted from the use of a contaminated feed.

Total wool production in the United Sta tes in 1952, is
rcportcd by the Bureau of Agricultural Economics at
265,973,000 pounds. This is 6 percent above production in
1951 and the largest si nce 1948. Production in the district
states was down 3 percent, primarily as a result of a decline
in Texas. Louisiana, Arizona, and Kew Mexico showed some
increases.

Other changes in loans during the 4 weeks ended March
18 include increases of $7,138,000, or 1.9 percent, in "all
other" loans (a category which includes consumer-type
loans) and $4,313,000, or 3.3 percent, in real estate loans.
Loans for financing sec urity transactions rose, while loans
to banks declined. Between March 19, 1952, and March 18,
1953, "all other" loans of these banks rose $83,836,000, or
28 percent, a rate of increase which is more than double the
expansion of total loans. The sharp increase in this category
reRects principally the strong demand for consumer-type
financing.

TIl vcstments of the weekly reporting member banks declined $4,778,000, or sl ightly, to a total of $1,375,658,000. A
rather sharp redUl.:tion of Trcasury bills and smaller de-

FARM COMMODITY PRICES

Top Prices Paid in local Southwesl Markets

COnlmodity and market

Unit

COTTO N, Middling 15/ 16·ln(.", Dolla~ •.•••

lb.
b,.
b,.
b,.

WHEAT, No.1 Mud, Fort Worth •• . . . ... . .
OATS, No.2 white, Fort Worth .•.........
CORN, No.2 yeUow, Fort Worth ..•.....•
SORGHUMS, No.2 yellow milo. fort Worth.
HOGS, Choice, f ort W ortn •. . .... . .•.. ..
SLAUGHTER STEERS. Choice, Fori Worth .• •

SlA.UGHTER CALVES, Choice, Fort Worth. . .
STOCKER STEERS. Choice. Fort Worth •••. .
SLAUGHTER LAMBS, Choice, Fort Worth .•.
HENS, 3-4 pounds, Fort Worth _ . . . .••..•.
FRYERS. Commercial, Fort Warth • .. ..•.. . .
BR OI LERS, south Texas •.....•• .. ...•• . . .
WOOL, 12-montM. west Texa' ...•....•.
MO HAIR. kid, west TeKos .. • . ••.•..•.•.
I

"".

cw t.
t wl.
twl.
twl.

I:wl.
lb.
lb.
lb.

lb.
lb.

Week e nd e d Comparable Comparable
March 24,
..... eek
week
195 3
lost month
lost year

.3275
2.6 8
1.0SV,
1.88
3.08
22.25
23.00
23.00
22 .0 0
24.00

.23
.29
.30
11.70
1.16V2

.3275
2.66%
1.04Y,
1.8 6~

3.21
21 .50
23.00
24.50
23 .00
2 1. 50

.20
.27
.25

CONDITION STATISTICS OF WEEKtY REPORTING
MEMBER BANKS IN LEADING CITIES

Eleven th Federa l Reserve District

04145

277

tin thousands af dollotl)

1.15'A

2. 16Y.t

3.18
17.75
34 .00
34.00
33 .00
27 .00

.20
.28
11.55
1.25

Clean bosit, delivered Boston.

Prices received by district farmers for most products held
rela tivel y steady or increased during March. Reports from
l"omllloriity ma rkets show that cotton prices advanced seasonall y to the hi ghest level since early December, while
moderate incrcases were recorded for broilers, hogs, lambs,
and grains, except sorghums. Prices of cattle and calves
nuctuatcfl within narrow limits. sho" ing a slight net decline
duri ng thc 4 weeks cnded March 2.1.

Uem

March 18,

March 19,

1953

1952

1953

$2,892,957
1,565,310
1,581,675

$3,188.911
1,789.771

1.097.744
7,915

1,203,21 2
11,452

Totalloanl (gron) and inyestments • .•.... •• .. $3,173.467
1,779,152
Totalloans-Net 1 • • •••••• • ••••••••••••••
1,797,809
Total loans-Gross ......................
Commercial, induitrial, and agricultural
loans .......• . ••.....• . •.. . •...• . • 1,186,815
10,627
loans to broken and dealers in securities ..
Other loans for purcha sing or corrying
71,699
securities ••.....•.•.•.•.•••••.•••..
135,3 4 1
Reol estate loans ....•.... . • . • . •.•. .. •
9,950
loans to bonks • . •... ... . ......•. •.•. .
383,377
All other 100n5 .•... .... .• .•.. .......•
1,375,658
Total investments ..........•.•.•..•.•..•
129,158
U. S. Treosury b ilb •. ..••.•••.•.• . •.•••
149,640
U. S. Treasury certiAcatel of ind ebtedness.
210.383
U. S. Treasury notes •. .. •• .. ••••..•. • .•
U. S. Government bonds {inc. gtd .
707,196
obligationsl • . •• ·•·····•···· .....• . .
179,281
O ther securities .. . . • .... . . .•.•.•.•. . ..
595,079
Reserves with Federal Rllserve Bank .• ...•....
456,111
Balances with dome$lic bo nks .• ••••..••.•• . .
2,540.786
Demand d epasils-odiu 5 ted~ ••••••.•.•• . •• ..
516.285
TIme deposits except Govttmment •• . •.. .. . . ..
79,64.4United States Government deposits . •.••.••...
843.136
Interbank demond deposits . .. ••. . .•.•••• . ..
16.500
Borrowings from Federal Reserve Bank •• •• • . ..

Februory 18.

58,993
116.933

549
299,541
1,311 .282
185,541
167,464
180.21 1

1,808,475

68,361
131,028
18,183
376,239
1.380,436
139,913
152,993
218,233
693,043

6 10,701
167,365
597,589
493,927
2.433,3 J.4
459,112
76,873
799,709

605,349
412,063
2,460,490
506,163

0

35,150

176,254

122,852
850,576

I After dttduetions for relerves and unallocated charge-offs.
I Includes 011 demand deposih other than interbank and United Stotes Government, le ss
cosh items reported alan hand or In process of collection.
NOTE : Beg inning with the report week of March 11. an additional bank's fliluros
afe induded in th is 18ri es; year·ago and month·ago figures hove been revised accord ingly.

56

MONTHLY BUSINESS REVIEW

creases in holdings of Treasury notes and certificates of indebtedness were offset, in part, by an increase in holdings of
Government bonds. Investments in municipal and other nonGovernment securities rose somewhat less than 2 percent.
Between February 18 and March 18, deposits of the weekly
reporting member banks rose $46,775,000, or 1.1 percent, to
a total of $4,292,800,000. This expansion is approximately
the same as that reported during the comparable period last
year. Demand deposits of individuals, partnerships, and
corporations increased $68,055,000, or 2.7 percent. Demand
deposits of states and political subdivisions rose, although
decreases in demand deposits of banks and of the United
Slates Government were more than offsetting. Time deposits
rose $10,1 32,000, or 2.0 percent, reflecting a further increase
in the time accounts of individuals and businesses.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Average. of daily figure,. In thou lands of dollars)
COMBINED TOTAL

Dot.

Gro»
demand

RESERVE CITY BANKS
Gross

Time

demand

Time

COUNTRY BANKS
Gross
demand

Ti me

February 1 9S 1 .•. $6,108,995 $648,772 $2,951,883 S395,55 1 $3,157,112 $253,221
February 1952 .•.
6,567,846 7 2 1,57 8 3,030,813 395,992 3,537,033 325,586
October 1952 ...
6.828,512 770,099 3,262.180 420.233 3,566, 332 349,866
November 1952 ..
7,025.207 780,156 3,338,376 421,427 3,686,831 358,729
December 1952 .•
7,090,304 784,739 3,380,098 422,356 3,710,206 362,383
Janoory 1953 ....
7,109,145 798,393 3,387,726 428,92 8 3,721 ,4 19 369,465
February 1953 ..•
6,850,152 808,429 3,223,32 5 433,931
3,6 26, 827 374,498

ANNOUNCEMENT
REVISION OF BA 'K DEBITS SEItJES

Beginning with the report lor March 1953, the
monthly bank debits series, which measures the extent
to which depositors are using their checking accolmts,
will be revised to increase its statistical value. The revised series will comprise debits only to demand accounts 0/ individuals, partnerships, and corporations
(l nd 0/ states and Jlolit,ical subdivisions; debits to
Uniled Stales Government accolwls and to time deJlosit accol!l1is will be eliminated.
The elimination 0/ debits to Treasu.ry Tax and Loan
Accounts and to accounts of collectors 0/ internal revenue at commercial banks will remove debits which are
110t representative of economic activity. The elimination 0/ debits to time deposit accounts will have little
effect on the volume of debits, since time deposits are
mther stable, but it will improve the significance and
compambility of rates of deposit turnover.
In the aggregate, the volume of debits on the revised
basis will be lower than the present series by only a
small percent; figures lor some individual centers, however, will be affected more than others. Estimates are
being made on the revised basis for each reporting
center lor the months of 1952 alld lor January and
February 1953. Thus, year-ago figures will be comparable with current figures.

Gross demand deposits of all member banks in the District
averaged S6,850,152,000 during February, as compared with
$7,109,145,000 in January. This reduction of 3.6 percent reflects principally a decline in deposits of the reserve city
member banks. In contrast with the decrease of demand deposits, time deposits rose 1.3 percent, with the reserve city
and country member banks sharing approximately cvenly in
the increase. The expansion of time deposits in February
marks a continuation of a trend which had prevailed in most
months ovcr a 2-year period_

BANK DEBITS, END-OF.MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
IAmounts in thousands of dollars)
DEPOSITS!

DEBITS!
Percentage
change from
February
Ci~y

1953

Feb .
1952

Jan.
1953

ARIZONA

Between February 15 and March 15, gold certificate reserves of the Federal Reserve Bank of Dallas rose $17,228,000, while total earning assets declined ,29,840,000. The
reduction of earning assets reflects principally a decrease of
$28,180,000 in disco unts for member banks. Holdings of
Government securities declined $1,705,000. On March 15,
Federal Reserve notes of this bank in actual circulation
amounted to $726,500,000, reflecting a decrease or $2,479,000
during the month.

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)

Item

March 15,

March 15,

1953

1952

Total gold certificote reserves .... ...... .. .. . $ 682.812
Discounts for member banks . ....... .. . .. .. .
21,000
Industrial advances ................ .•• .....
o
Foreign loans on gold . ................... .
990
U. S. Government securities ................ .
1,15 1,613
Total earning ossets ...................... .
1,173,603
Member banle reserve deposits . ............ .
1,087.035
Federal Reserve notes In actual circulation .... .
726,500

714,742

3,000
20

o

Feb. IS,
1953
665,584
49, 180

o

945

1,064,166
1,067,186

1,1 53,318
1,203,443

1,080,563
676,112

1,08 1,871
728,979

Tucson ........ .. . ...

Annual rate of tumover

Feb. 28,
1953

Feb.

Feb.

1953

1952 1953

Jan.

107,005

19 -13

118,333

10.9

10.1

12.6

45,415
189,451

6 -20
I -22

53,134
203,""3

10.3
1 1.2

10.4
11.4

12.5
14.2

-13

29,336

9.6

9.1

10.4

- 3 - 17
- 10 -14
I -24
2 -12
5 -16
- 3 - 24
12 - 16
17 _1 6
3 - 15
-3 -1 3
4 - 14
- 1 -1 6
5 - 19
- 1 -14
- 17 - 13
-7 - 13
- 10 - 13
3 -14
6 -10
- 1 - 11

58,329
120,791
122,780
103,892
117,509

9.7
12.6
16.3
14.3

10.7

1 1.6
14 .4
20.8
16.0

14.2

22,511
1,103,741

6.5
16.3

175,161

1-4.3
14.2

15.2
6.7
15.7
14.2

LOUISIANA

Monroe ....... ... .. .
Shreveport. .........
NEW MEXICO
Roswell ....... ... .. .
TEXAS
Abilene ........•... .
Amarillo . . .... ......
Austin .. .. . .. .
Beaumont ......... . .
Corpus Cl1ril ll . . ......
Corsicana .......... .
Dallas ...... .. . . ... .
EI Paso . . . ........ . .
',Fort Worth .....
Galveston .... . .. .. . .
Houston ...
loreda . ......
lubbock . .. . ...... . .
Port Arthur ! . _ . .... . .
San Angelo .... . . . . ..
Son Anlonio . . . . . . ...
Tellorkona' ........ . .
Tyler . . ......... . .. .
Waco . . . .......... .
Wichito Falls. , ......

24,455
"6,8-45
126,341
166,540
124,909
137,396
12 ,245
1.497,390
205,171
486,283
72,409
1,5 54,897
21,204
118,040
43,140

33,583
347,713
18,47 8
52,732
70,44 9
80,638

Totol-24 dties ........ $5,582,729

12

5

- 15

421,909

103,493
1,189,669

26,296
115,458
43,457

8,4
15.6
9.7
12.0

107,458

11.9
7.7
10.3
8.2
10 .•
9.6
9.0

$4,861,896

13.8

52,523
402,291

27,078
57,688

85,616

15.1

17.2
14.8

15.1

8.8
15.8
11.3
13.0
11.8

16.6
8.3
19.1
16.8
16.4

•. 6
17.8
11.5
14.0
13.6

•. 2

8.5

11.5
10.1
I!.'

11.8

14.0

16.0

9.0
9.2

9.1
12.4
10.0

•. 8

I Debits to de!)osit accou1ts except interbank accounts.
, Demond and time de!)aJits, including certified ond olAcers' checks outstanding bul excluding deposits to the credit of belnles.
, These figures include only one bank in Texarkana, TeJl.a~. Total debits for all banks in
TexQrkana, Texa s·Arkansas, including two bonks loca ted in the Eighlh District, amounted to
$34,640,000 fo r the month of February 1953 .
I Indicates change of less than one-half of 1 p.rcenl.

MONTHLY BUSINESS REVIEW

Debits to deposit accounts reported by banks in 24 cities
of the District declined 15 percent in Febru ary as compared
with the total for J a nuary. The reductio n in the volume of
spending which these figures reflect was common among all
reporting cities, ,,;th decreases ranging fro.m 10 percent to
24 percent. Although the smaller number of business days
in February as compared with January accoun ts for part of
the declin e, other seasonal factors also contributed to the
decrease. Cbarges to deposit accounts in February were 5
percent above the total reported for February 1952. The
annual ra te of turnover of deposits was 13.8 in February, as
co mpared with 16.0 ill January and 14.0 in February of
last year.

Daily average crude oil production in the Eleventh Feder al Reserve
Di strict durin g the first 3 weeks of
March was at the lowest level since
last August, when production was
held down for the purpose of reducin g excessively heavy
stocks accumulated during the oil strike a few mouths earlier.
The 3, t:~5,O OO-ba rrel production per da y through March 21
averaged 94,000 barrels less than during February a nd
108,000 barrels less than during the same period a year
('arli er. March producti on reAects the cutback in Texas allowables for that month, which was the third in a period of
if, months. Moreover, a further cutback ill the Texas allow·
ahles of a little over 119,000 barrels has been ann ounced for
April by the State's conservati on agency; Louisiana and
Oklahoma also have announced reductions. Large stocks, together with an anticipated seasonal decl ine in demand, have
been the im mediate factors di ctating the most recent cuts in
allowables.
Th e shutting in of production of wells in the Spraberry
trend was ordered by the Texas Railroad Commission , effective April 1. This action was taken to eliminate the flaring of
large quantiti es of gas occurring in conjunction with the oil
producti on. Since the daily allowables of the Spraberry wells
prior to the shutdown averaged around 82,000 barrels, the
closing of these wells will accentuate the reduction in district
oil production.
The decline in this District more than accounted for the
decrease in the Natio n's dail y average crude oil production
durin g the fi r st 3 weeks of March. Nati onal production averaged 6,460,000 barrels per day, which, a lthough down from
F ebru ar )" is 46,000 barrels more than a year earlier.
District stocks of crude oil rose significantly during
Fcbruary but then showed a m oderate decrease in the first
half of March. Stocks on March 14, at 145,000,000 barrels,
were 13.400,000 barrels hi gher than on the correspondin g
date last yea r. Na ti onal stocks also increased over a year ago.
Refinery ac tivi ty in the Di strict during February and early
March co ntinued at a high level for the seventh consecutive
month. Crude rullS to refiner y stills in February averaged
2.110,000 barrels a day, the same as in January and within
about 50,000 barrels of the average in each of the previous

CRUDE OIL PRODUCTION
(Barre's)

February 1953

Increese or decreo s. in doil y
a verl:lg e production from

Ar ea

Total
prod1Jction

Do ily ovg .
production

ELEVENTH DISTRICT
Texas R. R. Com. Oistrids

1

South Centrol . . .... . ..

1,02 9,000

2

Middle Gulf. . . . . . . . . .

4,687,550

3
-4
5
6

Upper Gulf .. . .. ... ... 13,924 ,050
Lower Gulf. . . . . . . . . . . 7 .472,150
EC;IIt Centrol . •• ,... . . .

1,464,050

Northeasl. .. .. . . . ....
East Texos. . . ......
Otner flelds ........
7b North Central. .. .. ....
7r. West Centra l. .. . . .. . .
8 West ... . . ... . . . .....
9 North.. . . .... . ...... .
10 Panhandle ..... ... . . . .
Total Texal .. ...... .
New Mexi<;o . . . . .. .. . . .....
Nortfllollisiana ... .. ....... .
Tota l Eleventh District . .. . ..
OUTSIDE ELEVENTH DISTRICT.. .
UNITED STAlES . . . . . . .. . ... . .

10,963,750
7 ,277,200
3,686,550
3,120,600
5,000,450
27,219,150
5,276,2 50
2, 129,400
8 2,2 86,400
4,894,750
3,22 1,050
90,402 ,200
92,510,600
182,912,800

36.750
167,413
497,287
266,862
52,288
391,563
259,90 0
131,663
111,450
178,588
972, 112
188.437
76,0 50
2,938,800
174,812
115,Q38
3,228,650
3,303,9 50
6,53 2,600

Feb . 1952

3,688
-2,358
-1 ,349
5 26
-1 0 ,234
-7,635
-11,248
3,613
23,0 84
36.700
-33 ,15 2
26.077
-7,121
28.226
18,879
-12 ,831
34,274
144 ,979
179,253

Jon . 1953

_671
457
- 2.367
2. 875
_615
-1,972
-2,745
773
_763
2.830
17.36 6
455
- 3.80 3
13.7 92
4 68
1,275
15.535
14,0 88
29,62 3

SOURCE: Estimated from Amerir.an Petrolellm JnstiMe weely reports.

1I10nths. February crude runs were 7 percent larger, however, than in the same month of 1952. Crude runs in the
Nation averaged 7,005,000 barrels per day, which was down
1 percent from the previou s month but was 6 percent higher
than a year earlier.

(i

Stocks of maj or refill ed products in this District have
been running below year-earlier levels for the past several
months, and this situation may accomlt for the sustained
high level of refin er)' activity in the District. In the week
ended March 21, district stocks of the four major refined
products were 4 percent less than on the same date a year
ago. Meanwhil e, stocks of major refin ed products in the
' ation as a whole have shown substan tial increases over yearearlier levels in each of the past several months ; in the week
ended March 21, these stoc ks totaled 283,400,000 barrels,
or 9 percent higher than a year earli er. With the major portion of the heating seaso n having passed, national stocks of
distillate fuel oils were 19 percent higher than a year ago.
Gasoline stocks stood at a record high, 3 percent above a
l ear earlier.
While imports of crude petroleum and refined products
have continued for several months at a daily rate exceeding
1,000,000 harrels, they have declined from the peak level in
early January. Imports during the G weeks ended March 14
averaged 1,035,000 barrels per day, or 158,000 barrels
hi gher than in the same period last year.
No major or widespread changes in prices of either crude
petroleum or r efined products occurred in this District in
the first month following the elimination of price controls.
The same situation prevailed in the rest of the Na tion , with
the excepti on of the increases on the West Coast and for
Pennsylvania Grade crud e in the Appalachian area noted
last month.
Drilling activity in the ation durin g the first 12 weeks
of this year was off fr om the peak level reached at the end of
last year and has bee n running substantially lower than in

58

MONTHLY BUSINESS REVIEW

the same period of 1952. The total number of active rotary
rigs in the week ended March 23 was 2,510, willch is 338
less than the December high and 212 less than a year earlier.
Most of this year·to·year decrease occurred in the west Texas
area and reflects the contraction in drilling activity in the
Spraberry trend.

NATURAL GAS, ESTIMATED PROVED RES ERVES
{In billion s of cub ic feet )
New supplies
de'Yeloped in 1952

Area

Proved reserves of crude oil and natural gas liquids of the
four producing states lying wholly or partly within the
Eleventh Federal Reserve District - Louisiana, New Mexico,
Oklahoma, and Texas - amounted to more than 24,000,000,000 barrels at the end of 1952, according to estimates
released by the American Petroleum Institute and the Ameri·
can Gas Association. This figure represents a net increase of
about 350,000,000 barrels over the level of estimated proved
reserves of the previous year. This increase was achieved de·
spite the record production of more than 1,700,000,000 barrels during 1952.
The increase in reserves of crude oil and natural gas
liquids in district states in 1952 was smaller than in any
previous year since 1946. Moreover, the net addition to reo
serves in relation to the number of wells drilled and to the
footage drilled, both of which reached all· time highs, was
appreciably smaller than the average of the past 10 years.
The Southwest's share of the Nation 's proved reserves showed
a small decline from 73.6 percent at the end of 1951 to 72.9
percent at the end of 1952.
Considerable variation existed among the four district
states with respect to the changes in proved reserves of crude
oil and natural gas liquids during 1952. Estimated proved
reserves in Texas declined 151,000,000 barrels, or about 1
percent, the first decline this State has experienced since 1943
when the war curtailed drilling activity. Thel'e are i ndications that a substantial downward revision in the estimated
reserves of fields in the Spraberry trend is largely responsible
for the failure of Texas to make a better showing during the
past year. On the other hand, New Mexico experienced the
largest net increase in its proved reserves in over 10 years,
with a gain of 143,000,000 barrels, or 19 percent. Meanwhile,
proved reserves in Louisiana were up 10 percent, and in
Oklahoma, up 3 percent.

Reser .... es Edensions
Dec. 31,
Disa.d
1951
re . . isions coveries

l ouisiana l .
29,0 05
New Me ll.ico .. 11 ,590
Oklahoma ... . 11,80 4
Tell.a$I .. . ... . 105.653
Total Eleventh
District states. 158.053
United States . 193,812

2,176
2,669

reserves
in 1952

1,270

2,447

4,936
5,905

4
14

1.460

217
200
2,950

,

4,330

31,452
14,039
11,765
10 5,733

6,853
8,934

4,908
5,4 1 1

18
199

6,843
8,640

162,988
199,716

548

Ch~llges

Netcnonge
in und erNol
Reser . . es
ground production Dec. 31,
storage
in 1952
1952

1,540

442
801

'"

2,449

- 40
80

Includes off·shore rese rves.
less than Ofle.
NOTE.; Detail will not nec;enorily odd to total, due to rounding .
SOURCE: American GO I Auociotion.

1
~

Estimated proved reserves of natural gas in the four pro·
ducing states in the District increased almost five trillion
cubic feet, or 3 percent. This increase is somewhat smaller
than in each of the previous 5 year s. At the end of 1952, total
proved reserves of these states amounted to 163 trillion cubic
feet, which is 82 percent of the Nation's total. Most of the increase in proved reserves among district states occurred in
Louisiana and lew Mexico, Texas showed only a very slight
increase, while Oklahoma reportcd a small decrease.
Marketed production of natural gas in the producing states
lying wholly or partly within the Eleventh District showed a
substantial seasonal increase during the fourth quarter of
1952 to reach a record high of 1,676 billion cubic feet. The
12.percent gain over the previous quarter was slightly larger
lhan in the corresponding period of 1951. As compared with
a year earlier, marketed production in the fourth quarter was
9 percent higher.
MARKETED PRODUCTION OF NATURAL GAS
( In millions of cub ic feet)

Area

Fourth

fourth

quarter

quarte r
1951

1952

Louisiana .. ..... .
Ne w Mexico ... . .
Oklahoma ...... .

324,200

278,600
83,200
145,800

•••••••••.

92,100
154,500
1,105,200

Toto !, .. , .. ,. ,

1,676,000

T ., xa~

Third
quarhH
1952

Year

Yeor

1952p

1951

1,025,300

279,800
83,100
134,100
998,100

1.135,000
354,600
644,800
4,168,700

1,054,199
538,756
3,781,136

1,532,900

1,495,100

6,303,100

5,674,260

300, 169

p_Preliminory.
SOURCE: United Slates Bureau of Mine5.

CRUDE OIL AND NATURAt GAS LIQUIDS
ESTIMATED PROVED RESERVES
II. millions of barrels of 42 U. S. ga llons}
New supplies
de'Yeloped in 1952
Reser .... e~
Dec. 31,

Extensions
a.d
re'Yisions

Disco . . eries

ProdtlCtion
in 19 52

Re ser .... es
Dec.3 1,

Changes
in rese r. . es
in 195 2

Areg

1951

louisiang I ••• ••••
New Muito . ....
Oklanoma ..•... .
Te)(al 1 • • •• •• ••• •

742
1,788
18,192

455
188
237
791

24
33
2 22

264
70
2 105

3,271
885
1,84 3

1,16 5

30 2
143
55

18,04 1

- 151

Total Ele'Yenth
District stotes .. . .
United Stotes ... .

23,692
32,193

1,672
2,728

391
578

1,7 14
2, 5 4 2

24,040
32,9 57

3 48
765

2,970

III

1 Includes off-snore reserves.
NOTE: Detail will not necessarily odd to lotal, due to rounding ,
SOURCES: American Petroleum Institute,
American GOt Assotiotion,

1952

While marketed production of district states for the entire
year 1952 was up 11 percent over that of the previous year,
this relative increase lVas significantly less than in the precedi ng 2 years, Production in 1951 rose 22 percent and in 1950,
17 percent. Restrictions on the addition of new customers in
some northeastern states and relatively mild weather during
the winter heating season were among the factors tending to
hold down the expansion in the marketed production of
na lural gas. The district states experiencing the larger increases in 1952 production were Oklahoma and New Mexico,
\I ith gains of 20 percent and 18 percent, respectively. The j
increase in marketed production in Texas amounted to 10 ,
percent and in Louisiana, 8 percent. These four states accounted for 79 percenl of the Nation's production in 1952,
as compared with 76 percent in 1951.

59

MONTHLY BUSINESS REVIEW

The total nwnber of nonagricultural wage and salary workers in
the five states of the District in
January was 3,815,500, or 4 percent
above January 1952, according to
state employment commission reports. It is believed that
subsequent reports will show that total nonagricultural employment increased to about 3,817,000 workers in February
and 3,829,000 workers in March, resulting from increased
trade activity during tbe Easter buying season and from increases in employment in service establishments. Moreover,
prospects are good for a continued increase in nonfarm employment in these states during the spring months.
One of the major changes in nonfarm employment in district states in January occurred in the nwnber of manufacturing wage and salary workers. However, the seasonal decline from 725,GOO workers in December to 716,200 in
January was considerably less than a year earlier, and the
January figure is 6 percent above a year ago. Employment in
this category has already shown signs of a spring rise, with
defense-related industries leading the way. Manufacturing
employment is estimated to have risen to 719,000 workers in
February and 720,000 in March.

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thou.and. of dollars)
January-February
February
1953

Area and type

Februory
1952

ELEVENTH DISTRICT .... $ 108,920
Residential . . . . . . . . .
49,555
AU ather. . . . . . . . . . .
59,365
UNITED STATESI .... .. 1,021,310
Residential. . . . . . . . .
418,568
All ather...........
602,742

January
1953

99,325
$89,944 $
33,782
48.404
50,921
56,162
885,206 1,075,868
396,438
460,036
488,768
615,832

above the total for January and 21 percent above that for
February 1952. Both residential and nonresidential awards
showed increases over year·earlier levels. For the first 2
months of 1953, the value of construction contracts awarded
in the District rose 25 percent above the same months of
1952, compared with a gain of 17 percent for the United
States. Residential awards in the District in the 2-month
period were up 43 percent from a year earlier, while the
corresponding gain in the Nation was 20 percent.

BUltDING PERMITS
2 months 1953
Percenlage
change in
....aluation from

l

F.bn.rary 1953

Percent change

Jan. 1953 from

Number of persons

~

Type of employment
Total nonagricultural
wage and salary werleers . .
Manufacturing • ••.•...•..
Nonmonufacturing •.......

Mining .... , .. .
Conrotrucli.)rl . .. .... .
Transporlati:N1 and pu ~!ic
utilities ........... .
Trade ..... .. .. .... .
Finance .............. .
Service ......... . .... .
Governmerlt . .. ......

Jonuary

January

December

1953p

1952

1952

3,815,500
7t 6,200

3,657,100
678,300

3,918,200
725,600

3,099,300
231.600
282.300

2,978,800
223700
270,700

AOa,dOO
967,200
143.400
439,800
626,600

d07,400
924,700
133,6~0

d24 , 100
594,600

1952
166,134
68.512
97,622
1,787,297
73.4,159
1,053,138

1 37 itates east of the Rocky Mountains.
SOURCEI F. W. Dodge Corporation.

NONAGRICULTURAL EMPLOYMENT

Five Southwestern Siotes

1953
208,245
97,959
110,286
2,097,178
878,604
1,218,574

Jan.
1952

Dec.
1952

3,192,600
229,800
206,600

4.3
5.6
4.0
3.5
' .3

-2.6
-1.3
-2.9

.... 16,200
1,02 1,900
1'3,900
441 ,700
652,500

.2
' .6
7.3
3.7
5.'

-1.9
-5.<1
-.3

.S

-1 .5

-.'
-4.0

,

Arizona, louisiana, Ne ..... MeJl,ica, Oklahoma, and TeJl,as.
p_Preliminary.
SOURCE: State employment agencies.

City

Number

LOUISIANA
Shreveport ....
TEXAS

Valuation

324 $ 1,517,958

Number
Feb.
1952

from

2

months
1952

13 -40

651

4,049,585

64

230
653
466
397
791
3,219
570
1,649
157
1,943
559
233
3,743
431
125

1,373,704
3,979,836
5.175,438
1,865,179
6,247,894
19,125,179
3,463.328
8,083,649
2,370,339
17.367,169
3,556,854
642,065
7,390,067
1,434,554
1,664,112

43
-11
6
-7
156
34
-26
38
361

15,817

$87,788,952

6

817,039
2,077.000
2,373,747
501,020
3,499,552
8,226,083
1,377,693
4,463.519
1,410.048
7 ,813,960
1,452,616
413.933
3,953,543
838.003
1,110,437

138
-21
-30
-40
186
1
-64
56
365
-4
-II
136
6
-62
-66

Total •••...•••. • 7,985 $41.846.151

-5

-9

121
375
AustIn . ... . .. .
230
Beaumont ... . .
16'
Corpus Chris'i ..
333
Dallas ....... . 1,691
El Pcuo •. • .. ..
321
Fort Worth ....
812
Galveston ... ..
81
917
Houston . . . ....
lubbock . . .. ..
285
Port Arthur . ...
110
San Antonio .. . 1.942
Waco ... .....
228
51
Wichita Falls...

VClluQlian

Jan.
1953

47
9
-15
-63
27
_25
-3'
23
47
-18
-31
81
15
40
101

Abilene .... • . •
Amarillo ••. . . •

Percentage
change in
valuation

,

29
48
8
-59
-82

, Indicates change of le55 than one·half of I percent.

Of the seven major nonmanufar turing employment categories, as outlined in state reports, only mining showed an increase in January over the Decembe r tutal. The most impres'
sive increases in January over a yea r earli er \Vere in finance
and government, which show gains of 7 percent and 5 percent, respectively.
In lanuary, only Dallas and Hou,to n aillong the majur
labor market areas of the District were placed in a category
of a balanced labor supply, according to a Department of
Labor report. The other 13 markets remained areas of mode rate labor surplus_

The value of construction contracts a warded in the District
• ill February, estimated at $108,920,000, was 10 perrent

Construction contracts awarded in Texas during January
and February provide for 8,898 dwelling units in new residential buildings. This compares with 6,319 in the same
months last year and 11,120 units 2 years ago. In terms of
value, private contracts accounted for 98 percent of the
January-February total. Contracts for nonresidential building in Texas in this period also were ahead of a year ago by
43 percent, due to increased activity in the construction of
commercial, industrial, edu~ationaL religious, public, and
social and recreational buildings. The total value of contracts
for buildings in Texas in the 2-month period was up 45 percent from a year ago ; contracts for construction of public
works and utilities were lower.