7

UNITED STATES TARIFF COMMISSION

WOVEN VELVET CARPETS: FORMER WORKERS OF THE FRAMINGHAM, MASS.,

PLANT OF ROXBURY CARPET CO. CHATTANOOGA, TENN.

Report to the President on Investigation No. TEA-W-230

Under Section 301(c)(2) of the Trade Expansion Act of 1962

TC Publication 670 Washington, D.C.

May 1974

UNITED STATES TARIFF COMMISSION

COMMISSIONERS

Catherine Bedell, Chairman Joseph 0. Parker, Vice Chairman Will E. Leonard, Jr. George M. Moore J. Banks Young Italo H. Ablondi

Kenneth R. Mason, Secretary to the Commission

Address all communications to

United States Tariff Commission

Washington, D. C. 20436

CONTENTS

DIES

1 Finding of the Commission 2 Consideration Supporting the Commission's Finding:

Views of Chairman Bedell, Vice Chairman Parker, and Commissioners Moore and Ablondi 3

Views of Commissioners Leonard and Young 5

Information obtained in the investigation: Articles under investigation A-1 U.S. tariff treatment U.S. consumption A-6 U.S. shipments A-6 U.S. imports A-7 U.S. exports A-8 Prices A-9 Roxbury Carpet Co.:

Company history and facilities A -10 * * * Unemployment A-11 * * *

Appendix. Statistical tables A-13

TABLES

1. U.S. rates of duty applicable to velvet (including tapestry) carpets and rugs, 1930 and GATT concessions, except as indicated, to Jan. 1, 1974 A-14

2. Soft-surface floor coverings: U.S. shipments, imports for consumption, exports of domestic merchandise, and apparent consumption, 1968-73 A-16

Report to the President

it

CONTENTS

Tables--Continued

Page

A-17

A-18

A-19

3. Velvet carpets and rugs: Estimated U.S. shipments, imports for consumption, exports of domestic merchandis e, and apparent con-sumption, 1968- 73

4. Soft-surface floor cover ings: U.S. shipments, by type, 1968- 73

5. Soft-surface floor cover ings: U.S. imports for consumption, by TSUSA items, 1968- 73

Note.--The whole of the Commission's report to the President may not be made public since it contains certain information that would result in the disclosure of the operations of an individual concern. This published report is the same as the report to the President, except that the above-mentioned information has been omitted. Such omissions are indicated by asterisks.

REPORT TO TIE PRESIDENT

U.S. Tariff Commission, May 6, 1974.

To the President:

In accordance with section 301 of the Trade Expansion Act of 1962

(TEA) (19 U.S.C. 1901), the U.S. Tariff Commission herein reports the

results of investigation No. TEA-W-230 made under section 301(c)(2) of

the act to determine whether as a result in major part of concessions

granted under trade agreements, articles like or directly competitive

with woven velvet carpets (of the types provided for in item 360.46 of

the Tariff Schedules of the United States (TSUS)) produced by Roxbury

Carpet Co., Chattanooga, Tenn., formerly a subsidiary of Carson, Pirie,

Scott & Co., Chicago, Ill., are being imported into the United States in

such increased quantities as to cause, or threaten to cause, the

Unemployment or underemployment of a significant number or proportion of

the workers of such firm or an appropriate subdivision thereof.

The investigation was instituted on March 8, 1974, on the basis

of a petition for adjustment assistance filed under section 301(a)(2) of

• the act on behalf of the former workers of the Framingham, Mass., plant

of the Roxbury Carpet Co. The original petition was received on Febru-

ary 26, 1974, but because it lacked certain pertinent data, the Commis- 1/

sion instituted a preliminary investigation. Upon receipt of the addi-

tional information, the Commission instituted the investigation.

1/ Commissioner Leonard feels that the original petition, if inade-quate, should have been dismissed and that the investigation should have been instituted only when a perfected petition had been filed.

2

Public notice of the investigation was published in the Federal

Register (39 F.R. 10037) on March 15, 1974. No public hearing was re-

quested,and none was held.

In the course of its investigation, the Commission obtained in-

formation from officers of Carson, Pirie, Scott & Co., former customers

of Roxbury Carpet Co., through fieldwork by the Commission's staff, of-

ficial Government statistics, and the Tariff Commission's files.

Finding of the Commission

On the basis of its investigation, the Commission finds that arti-

cles like or directly competitive with woven velvet carpets (of the

types provided for in item 360.46 of the Tariff Schedules of the United

States) produced by the Roxbury Carpet Co., Chattanooga, Tenn., are not,

as a result in major cart of concessions granted under trade agreements,

being imported into the United States in such increased quantities as

to cause, or threaten to cause, the unemployment or underemployment of

a significant number or proportion of the workers of such firm.

Views of Chairman Bedell, Vice Chairman Parker, and Commissioners Moore and Ablondi

Our determination in this investigation is in the negative because

the criteria established by section 301(c)(2) of the Trade Expansion Act

of 1962 (TEA) have not been met. Before an affirmative determination

can be made, the Commission must find that each of the following condi-

tions has been satisfied.

(1) Articles like or directly competitive with those produced by the workers' firm are being imported in increased quantities;

(2) The increased imports are the result in major part of concessions granted under trade agreements;

(3) A significant number or proportion of the firm's workers are unemployed or underemployed; and

(4) The increased imports resulting from trade-agreement concessions are the major factor in causing or threatening to cause the unemployment or under-employment of the workers.

Based on the evidence adduced in this investigation, we find

that imports of articles like or directly competitive with carpets

produced by Roxbury Carpet Co., whether or not such imports have

increased as a result of trade agreement concessions, are not the

major factor causing, or threatening to cause, the unemployment or

underemployment of the workers of the Rokbury Carpet Co.

The petitioners were employed at the Saxonville plant of the

Roxbury Carpet Co., located near Framingham, Mass. The products of

the plant were velvet floor coverings and carpeting made on upholstery-

4

type looms and backed by a heavy rubber coating. The plant was closed

in a series of steps beginning in October 1972 and ending in April

1973.

Machine-woven pile carpets and rugs constitute only a small

portion of total U.S. consumption of soft-surface floor coverings. The

demand for velvet carpets and rugs has declined for a number of years.

The main reason for this decline has been the increase in demand for

tufted carpets and rugs. The tufted type is substantially lower-

priced than the velvet and other woven types, and the machines used

to produce tufted floor coverings operate at a much faster rate,

requiring correspondingly less labor and overhead expense.

There is no evidence that import competition had a significant

impact on the Roxbury Carpet Co's operations or on the unemployment of

the workers. In fact, estimated imports of velvet carpets and rugs--

the type produced by the Roxbury Carpet Co. at its Saxonville plant--

as a ratio of consumption, did not exceed 1 percent during 1968-73.

For all other types of carpets and rugs, the ratio of imports to con-

sumption declined from 3.5 percent in 1968 to 1.7 percent in 1973.

There were other problems in marketing and management which

contributed to the decision of management to close the plant.

Conclusion

On the basis of the information available to the Commission, we

conclude that imports were not the major factor causing, or threatening

to cause, the unemployment or underemployment of the petitioning workers

and have, therefore, made a negative determination.

5

Views of Commissioners Leonard and Young

The Commission's finding in this investigation relates to a

petition filed on behalf of workers formerly employed in the manu-

facture of woven velvet carpets at the Framingham, Massachusetts,

plant of the Roxbury Carpet Co., for a determination of their

eligibility to apply for adjustment assistance under the Trade

Expansion Act of 1962. We have made a determination on the merits,

although we disagree with the manner in which the petition was

handled.

We concur with our colleagues that all of the conditions imposed

by section 301(c)(2) of the Act have not been met in the instant

case. Specifically, we have concluded that articles like or directly

competitive with the woven velvet carpets produced by the workers

of the Framingham, Massachusetts, plant of Roxbury are not being im-

ported in increased quantities. Our reasons for reaching that con-

clusion are discussed in the following paragraphs.

"Like or directly competitive"

To determine whether increased imports, the result in major

part of trade-agreement concessions, are the major factor causing

or threatening to cause unemployment or underemployment of workers

petitioning for adjustment assistance, it first must be decided what

the imported articles area The relevant provisions of law describes

the import to be considered as "an article like or directly competitive

with an article produced by such workers' firm, or an appropriate

subdivision thereof." 1/

1/ Trade Expansion Act of 1962, section 301(c)(2).

"Like" articles

The petitioning workers of the Framingham plant of the Roxbury

Carpet Company produced woven velvet carpets. An article "like"

another is substantially identical in inherent or intrinsic charac-

teristics (i.e., materials from which made, appearance, quality,

texture, etc.). 1/ Thus, the imported article "like" the article

produced by the workers at the Framingham plant of Roxbury would be

a woven velvet carpet.

There are no increased quantities of such "like" articles.

Estimated U.S. imports of woven velvet carpets 2/ decreased from

175,000 square yards in 1968 to 75,000 square yards in 1972, the

last full year of operation of the Framingham plant of the Roxbury

Carpet Company. Imports of woven velvet carpets rose to 1968 levels

in 1973; however, phase-out of the plant had been begun in October

1972 and was completed in April of 1973. Likewise, the share of

U.S. consumption of woven velvet carpets supplied by imports declined.

That share was 0.7 percent in 1968, 1969 and 1970 but declined to

.5 percent in 1971 and to .4 percent in 1972. In 1973, the share

of imports increased to .9 percent, but, as we have pointed out,

phase-out of the plant had already begun in October of the previous

year.

1/ See Rindge Industries, Inc., TEA-W-159, T.C. Pub. 526, 1972, pp. 9-15: In addition, Commissioner Leonard refers to Sun Manufacturing Company, TEA-W-110, T.C. Pub. 429, 1971, pp. 5-9; FMC Corporation, TEA-W-35, T.C. Pub. 357, 1971, pp. 7-11, and Uniroyal, Inc., TEA-W-13 and TEA-W-14, T.C. Pub. 321, 1970, pp. 13-15.

2/ Import data on woven velvet carpets are not separately reported in the official statistics of the Department of Commerce. The data shown are estimated by the Tariff Commission on the basis of information received from trade sources and related official statistics of the Department of Commerce.

7

"Directly competitive" (horizontal) articles 1/

Besides the imports of an article "like" the article produced

by the workers' firm, consideration must also be given to imports of

an article "directly competitive" with the article produced by the

workers' firm.

"Directly competitive" articles are those which, although not

substantially identical in their inherent or intrinsic characteris-

tics, are substantially equivalent for commercial purposes, that is,

are adapted to the same uses and are essentially interchangeable

therefor. 2/ Soft-surface floor coverings other than woven velvet

carpets are equivalent to woven velvet carpets for commercial purposes.

They possess the same functional properties and are interchangeable

with woven velvet carpets for the same uses. Therefore, directly

competitive with the woven velvet carpets produced by the workers

at the Framingham plant of Roxbury are all soft-surface floor coverings.

There are no imports in increased quantities of such "directly

competitive" articles. U.S. imports of soft-surface floor coverings

declined irregularly from 21 million square yards in 1968 to 19

million square yards in 1972 and 18.2 million square yards in 1973.

The share of U.S. consumption of soft-surface floor coverings supplied

by imports has steadily declined since 1968, falling from 2.5 percent

to 2.0 percent in 1972 and 1.7 percent in 1973.

1/ This discussion does not deal with articles which are "directly competitive" at an earlier or later stage of processing. See section 405(4) of the Trade Expansion Act of 1962.

2/ See footnote 1 on p. 7 of this report.

8

Conclusion

In view of the above, we have concluded that articles like or

directly competitive with the woven velvet carpets produced by the

workers of the Framingham, Massachusetts plantof the Roxbury Carpet

Co. are not being imported in increased quantities and, therefore,

we have made a negative determination.

A-1

INFORMATION OBTAINED IN THE INVESTIGATION

Articles Under Investigation

The workers of the woven carpet plant of Roxbury Carpet Co., a former

subsidiary of Carson, Pirie, Scott & Co., are the petitioners in this

investigation. The plant, known as the Saxonville plant, was located near

Framingham, Mass. and included facilities for making carpet yarn. Most of

the yarn produced in this plant was consumed in the weaving of carpets and

rugs at the same location. The products of the Saxonville plant were

woven velvet floor coverings in 9-, 12-, and 15-foot widths, and 5l-inch

carpeting made on upholstery-type looms. Roxbury also had two plants

in Chattanooga, Tenn.--one for making tufted carpets and rugs and the

other for dyeing and finishing carpets and rugs.

Phasing out of the yarn mill began in October 1972 and was completed

in January 1973. The phasing out of the weaving operations started in

January 1973 and was completed in April 1973. Carson, Pirie, Scott & Co.

sold Roxbury's dyeing and finishing and tufting plants in Chattanooga,

Tenn., to Trend Mills Division of Champion International Corp. in June

1973.

A-2

Machine-woven pile 1/ carpets and rugs constitute only a small

portion of total U.S. consumption of soft-surface floor coverings;

velvet 2/ carpets and rugs are the principal type of woven floor cover-

ings consumed. The velvet carpet utilizes one of the simplest weaves.

It is usually less expensive to weave than the Wilton 3/ which is another

important type of woven carpet. The loom required for the velvet is less

complicated and the method of weaving usually requires less pile yarn per

square yard of finished product. In recent years most velvets have been

produced in solid colors. The demand for textured effects, however, has

been increasing. Such effects are achieved by several methods. Pile

woven at different heights forms a sculptured or textured surface;

tightly twisted cut pile provides a frieze surface; and uncut looped pile

supplies a pebbly texture. Other effects are obtained by combining cut

and uncut pile in the surface. In 1950, according to Bureau of the

Census data, velvet floor coverings constituted 31 percent of U.S. ship-

ments of all soft-surface floor coverings, but in 1973 they accounted for

about 1.6 percent.

1/ Pile carpets and rugs are those having tufts that stand erect and form the surface of the carpet or rug. The tuft ends may be cut or uncut (looped). 2/ As used hereinafter, the term "velvets", unless otherwise indicated,

refers to machine-woven velvet carpets and rugs, including those uphol-stery-loom types similar in appearance and use to velvets. 3/ The Wilton carpet is woven on a loom with a jacquard attachment,

which determines whether individual pile yarns will be submerged in the body of the fabric or will appear on the surface. The jacquard attachment is used to achieve a pattern by variations in the color, texture, or depth of pile.

A-3

The principal competitor of velvets in the domestic floor-covering

market is the machine-tufted pile carpet. Machine-tufted carpets differ

in construction from machine-woven carpets principally in the manner in

which the surface yarns (the pile) are anchored to the base of the fabric.

In the tufted carpet, the tufts are inserted mechanically into a previously

prepared woven backing. The tufting machine, which employs a multineedle

operation to "sew" the pile yarns into the backing, operates at a speed

many times that of an ordinary velvet loom.

After 1950, machine-tufted carpets and rugs made rapid inroads into

the market that was formerly supplied almost exclusively by machine-woven

carpets and rugs. Technology in the tufting process developed rapidly

and tufted floor coverings now offer most of the texture, color, and

decorative effects popular in woven carpets. Tufted carpets and rugs of

all sizes accounted for 93 percent of total domestic shipments of soft-

surface floor coverings in 1973.

U.S. Tariff Treatment

From 1930 until January 1, 1939, the rate of duty on velvet carpets

was 40 percent ad valorem if valued not over 40 cents per square foot,

and 60 percent ad valorem if valued at more than 40 cents per square

foot. Effective January 1, 1939, the rate on velvets valued at more

than 40 cents per square foot was reduced to 4o percent ad valorem,

which was the same rate of duty as on such carpets valued not over 40

cents per square foot (table 1). Effective January 1, 1948,

A-4

the rate of duty on velvet carpets, regardless of value, was reduced to

30 percent ad valorem. The rate was reduced further to 25 percent ad

valorem, effective June 6, 1951; to 23.5 percent ad valorem, effective

June 30, 1956; to 22.5 percent ad valorem, effective June 30, 1957; and

to 21 percent ad valorem, effective June 30, 1958.

In response to a Tariff Commission finding of serious injury to the

domestic Wilton and velvet carpet and rug industry, the President pro-

claimed an increase in the rate of duty applicable to imported Wiltons

and velvets from 21 percent to 40 percent ad valorem, effective June 18,

1962. 1/ Thereafter, the Commission made several annual reports to the

President on developments in the trade and a report (TC Publication 213,

September 1967) on the probable economic effect on the industry of

restoring the 21-percent rate of duty. Following receipt of the latter

report, the President extended the period for which the 40-percent rate

would remain in effect to December 31, 1969. 2/

On June 27, 1969, in response to a petition filed on behalf of the

domestic industry concerned, the Commission instituted an investigation

persuant to section 351(d)(3) of the Trade Expansion Act. In connection

1/ Presidential Proclamation No. 3454, March 19, 1962 and Presidential Proclamation No. 3458, March 27, 1962.

2/ Presidential Proclamation No. 3815, October 11, 1967.

A-5

with this investigation, the Commission reported to the President, on

November 18, 1969, that in its judgment, under conditions which currently

existed in the domestic Wilton and velvet carpet industry, in the market

place, and in the industry abroad, the U.S. producers in the aggregate

would be little affected by the termination of the duty increase. The

President, however, by proclamation dated December 31, 1969, 1/ extended

the increased rate of duty (40 percent ad valorem) on imports of Wilton

and velvet carpets and rugs, other than imitation oriental types, 2/ to

the close of December 31, 1972. There were no further extensions, and

the rate of duty on Wiltons and velvets reverted to the trade-agreement

rate of 21 percent ad valorem, effective January 1, 1973.

U.S. imports of woven wool velvets are subject to restraint under

category 132 of the Arrangement Regarding International Trade in Tex-

tiles. 3/ U.S. imports of velvet carpets of manmade fibers are not

subject to restraint under this Arrangement.

1/ Presidential Proclamation No. 3953. 2/ The imitation orientals were of types similar to Wiltons. 3/ A multinational, multifiber arrangement to provide for orderly

international trade in textiles and textile articles of cotton, wool, and manmade fibers, effective Jan. 1, 1974, for 4 years. This Arrangement succeeds the Long Term Arrangement Regarding International Trade in Cotton Textiles, and bilateral agreements between the United States and certain Far-Eastern countries on trade in textiles and textile articles of wool and manmade fibers.

A-6

U.S. Consumption

Total U.S. consumption of soft-surface floor coverings was 601.0

million square yards in 1968 and 1,020.3 million square yards in 1973,

an increase of about 70 percent (table 2). Over this period consumption

of velvets decreased from 25.6 million square yards to 18.9 million

square yards, a decline of about 26 percent (table 3). Velvets' share

of the total consumption decreased from 4.2 percent in 1968 to 1.8 per-

cent in 1973. Most of the velvets are consumed in the institutional

or contract markets--hotels, motels, office buildings, hospitals,

restaurants, etc.--where there is heavy traffic. The great bulk of the

U.S. consumption of floor coverings, for both the contract and the

residential markets, consists of tufted carpets and rugs. Such carpets

are generally much lower in price than velvets, have a satisfactory

wear life, and are offered in a large variety of styles and colors.

U.S. Shipments

Total U.S. shipments of soft-surface floor coverings increased

from 586.2 million square yards in 1968 to 1,021.4 million square yards

in 1973, or by 74 percent (table 4). Shipments of domestically produced

velvets declined from 25.5 million square yards in 1968 to 19.0 million

square yards in 1973, or by about 26 percent. The decline in shipments

of all machine-woven carpets was even greater, from 35.8 million square

yards to 24.7 million square yards in 1973, a decrease of 31 percent.

A47

In contrast, shipments of tufted carpeting increased from 511.0 million

square yards in 1968 to 944.8 million square yards in 1973, an increase

of 85 percent. In 1973, 86 percent of the tufted floor coverings measured

over 4 feet by 6 feet (broadloom) and the remainder consisted of scatter

rugs, bath mats, and sets. Shipments of floor coverings other than woven

or tufted, consisting of knitted, needle-punched, braided, and hooked

carpets and rugs, increased from 39.3 million square yards in 1968 to

51.9 million square yards in 1973, or by 32 percent.

One of the principal reasons for the decline in shipments of woven

carpets and rugs, including velvets, and the rapid growth in the ship-

ments of the tufted types has been the substantially lower price of the

latter. The average unit value per square yard of the tufted broadloom,

which is the type most competitive with velvets, was $3.50 in 1968 and

$3.41 in 1973, compared with an average unit value per square yard for

shipments of all wovens of $6.53 in 1968 and of $7.82 in 1973 and of

velvets, of $6.47 and $7.82, respectively.

U.S. Imports

U.S. imports of all soft-surface floor coverings decreased from

21.0 million square yards in 1968 to 18.2 million square yards in 1973

(table 5). The ratio of imports to consumption over this period declined

from 3.5 percent to 1.7 percent (table 2). The principal type imported

in recent years, on a quantity basis, was braided rugs. Other important

A-8

types were cotton imitation orientals, woven Axminsters, hand-knotted

(true) orientals, and wool imitation orientals. Imports of velvets have

been small in recent years. It is estimated that they were 175,000

square yards in 1968 and 1969, decreased to 75,000 square yards in 1972,

and then increased to the 1968-69 level in 1973. Belgium, Italy, and

the United Kingdom have been the principal sources. Imports of the

upholstery-loom type are believed to have been nil. The ratio of imports

of velvets to the total imports of soft-surface floor coverings was 0.8

percent in 1968 and 1.0 percent in 1973; the ratio to total domestic

consumption of all soft-surface floor coverings was 0.03 percent in 1968

and 0.02 percent in 1973; and the ratio to consumption of velvets was 0.7

percent in 1968 and 0.9 percent in 1973.

U.S. Exports

U.S. exports of all soft-surface floor coverings increased from

6.2 million square yards in 1968 to 19.3 million square yards in 1973

(table 2). In the latter year, exports exceeded imports for the first

time in the 6-year period. This was partly due to dollar devaluation

and partly due to increased efforts on the part of domestic manufacturers

to sell their merchandise abroad.

Exports of velvets ranged between 100,000 square yardsin 1968 and

235,000 square yards in 1973 (table 3). In the latter year, exports

were the highest for the period, for the same reasons as discussed

immediately above. Exports of the upholstery-loom type are believed to

have been negligible or nil.

A-9

Prices

Since June 18, 1962, when the rate of duty was increased from

21 percent to 40 percent ad valorem, imported velvets have usually been

higher-priced than domestic velvets. One of Roxbury's popular styles

was a 100-percent wool velvet, which sold at wholesale for $12.00 per

square yard in January 1972. A fairly comparable popular all-wool velvet

from Belgium sold for $14.95 per square yard, including duty, freight,

insurance, overhead expense, and profit. Selling prices on all-wool

velvets from the United Kingdom were higher than those of the Belgian

carpets.

It is difficult to make meaningful price comparisons because most

of the imported velvets are used in the residential market whereas most

of the domestically-made velvets are used in the contract or institu-

tional market. Generally, velvets for the residential market are

higher-priced than those for the contract market.

A-10

Roxbury Carpet Co.

Company history and facilities

Roxbury Carpet Co. was founded in 1854 in Roxbury, Mass. by

Michael H. Simpson. Initially, the company produced tapestry carpets 1/

on some of the first tapestry carpet power looms in operation in the

United States. In 1858, Mr. Simpson purchased a carpet yarn mill from

the New England Worsted Co. in Saxonville, Mass. and Roxbury became the

first fully-integrated producer in the carpet industry (from raw wool to

finished carpets).

Roxbury was incorporated in 1859 and continued to manufacture the

company's line of tapestry floor coverings through 1884. In succeeding

years, the company added velvet and Axminster carpets to its line.

In 1919, the Saxonville plant was greatly enlarged to provide space

for the looms and other machinery of the Roxbury mill, which was closed.

On July 1, 1927, Roxbury was purchased by Jacob F. Brown, who served as

president from 1927 until his death in 1937.

In 1955, Roxbury acquired the major interest in a tufted carpet

plant in Chattanooga, Tenn., which became a subsidiary, Roxbury Southern

Mills, Inc. In 1956, M. J. Whittall Associates, Inc., Worcester, Mass.,

a manufacturer of Wilton carpets since 1880, was merged with Roxbury

and was named the Whittall Division. Wiltons were produced through 1965

1/ In times past, when there was substantial trading in tapestry carpets, velvets were characterized as being cut-pile fabrics, and the tapestries, as uncut-pile fabrics. Velvet carpets are no longer distin-guished in the trade from tapestry carpets, i.e., as being of cut rather than uncut pile. Plain-woven carpets and rugs of both cut and uncut pile are regularly marketed as velvets.

A-11

in the Whittall Division, when this operation was discontinued and the

division name dropped. During the 1960's, the Saxonville, Mass. plant

was producing velvet, Axminster, knitted, and upholstery-loom type

carpets, all the yarn for the Saxonville plant, and a substantial part

of the yarn for the Roxbury Southern plant producing tufted carpets.

By 1968, the production of the Axminster and the knitted floor coverings

had been discontinued.

Roxbury became a publicly held corporation in 1957 and also started

production of carpets of manmade fibers in that year.

On August 3, 1965, Carson, Pirie, Scott & Co., one of the leading

department stores in Chicago, purchased 39 percent of the outstanding

stock of Roxbury. Its ownership was increased to 78 percent of the

outstanding stock in 1968; 80 percent, in 1971; 90 percent, in 1972;

and 98 percent, in April 1973.

* 1/

Unemployment

The following table gives unemployment rates for the Framingham

area, for Massachusetts, and for the United States.

1/ Pages A-11 (in part), A-12 through A-14, A-15 (in part), and A-16 through A-17 of the confidential report relating to information on Roxbury Carpet Co. have been omitted.

A-12

Unemployment rates for the Framingham area, for Massachusetts, and for the United States, April 1971-73

(In percentages)

April : April April 1971 1/ ; 1972 2/ 1973

Location

Framingham area 3/ 5.3 • 7.3 : 6.5

Massachusetts 6.6 : 6.7 : 6.2

United States 5.7 • 5.8 • 5.0

1/ 2 years prior to closing of Saxonville plant. 2/ 1 year prior to closing of Saxonville plant. 3/ Includes the Boston area.

Source: Massachusetts Division of Employment Security.

* 1/

1/ Pages A-11 (in part), A-12 through A-14, A-15 (in part), and A-16 through A-17 of the confidential report relating to information on Roxbury Carpet Co. have been omitted.

APPENDIX

Statistical Tables

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A-14

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A-16

Table 2.--Soft-surface floor coverings: U.S. shipments, imports for consumption, exports of domestic merchandise, and apparent consump-tion, 1968-73

Year

' Apparent : Ratio of . :

Shipments : . Imports . Exports . consump- : imports

. . . tion • to con- • : sumption

Million : Million : Million : Million : sq. yds. : sq. yds.: SQ. yds.: sq. yds.: Percent

1968 : 586.2 : 21.0 : 6.2 : 601.0 : 3.5 1969 : 642.6 : 21.9 : 6.3 : 658.2 : 3.3 1970 : 680.5 : 18.5 : 7.4 : 691.6 : 2.7 1971 755.2 : 17.7 : 7.1 : 765.8 : 2.3 1972 : 934.9 : 19.0 : 8.9 : 945.0 : 2.0 1973 :1/ 1,021.4 : 18.2 : 19.3 : 1 ,020.3 : 1.7

1/ Preliminary.

Source: Compiled from official statistics of the U.S. Department of Commerce.

A-17

Table 3.--Velvet carpets and rugs: Estimated U.S. shipments, imports for consumption, exports of domestic merchandise, and apparent con-sumption, 1968-73

Year

• Ratio of Apparent

Shipments : Imports Exports . consump- : imports tion

to con- . : : : : sumption

1,000 : 1,000 : 1,000 : 1,000 : sq. yds. : sq. yds.: sq. yds.: sq. yds.: Percent

: : : • . : 1968 : 25,500 : 175 : 100 : 25,575 : 0.7 1969 : 26,000 : 175 : 120 : 26,055 : .7 1970 21,500 : 150 : 105 : 21,545 : .7 1971 : 19,300 : 100 : 145 : 19,255 : .5 1972 : 20,300 : 75 : 130 : 20,245 : .4 1973 : 19,00o : 175 • 235 : 18,910 : .9

Source: Estimated by the U.S. Tariff Commission, based on official statistics of the U.S. Department of Commerce.

shipments, by type, 1968-73

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