Texas Almanac, 1952-1953 Page: 236
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TEXAS ALMANAC.-1952-1953.
At the same time the population had in-
creased from 1,591,749 to 3,048,710, railroad
mileage from 3,244 to 9,867, and commerce
through the Gulf ports was getting under
way. In 1901, the first two big packing plants
were established in Texas at Fort Worth,
inaugurating an era of conversion of Texas
agricultural products by the manufacturing
processes, and at the same time an era of
interest in the economic development of Texas
by capital from outside sources. In the dec-
ade following 1900, the number of industrial
wage earners almost doubled and value added
by manufacture more than doubled. At the
same time there was a rapid increase in the
variety of manufactured products.
This period was characterized, also, by the
rapid development of the petroleum-refining
industry. There were small refineries before
1900, notably at Corsicana. After the discovery
at Spindletop in 1901, and the other coastal
fields a little later, refineries were erected at
Port Arthur, Beaumont and Houston. This
development was rapid during the following
decade, 1910-1920, and the census of 1920
showed it to be the leading industry with
$241,757,313 of products in the year 1919. It
has been the leading industry ever since.
Beginning with the establishment of the first
two big packing plants in 1901, there was
rapid development of this industry, ranking
in first place in 1909 and dropping back be-
hind the more rapidly expanding petroleum-
refining industry in 1919.
The period from the beginning of the cen-
tury until the First World War was charac-
terized primarily by (1) the development of
oil and gas resources, not only bringing a
great manufacturing industry into existence
but also furnishing an ample source of power
which the state had previously lacked; (2)
continued increase in population, and trans-
portation facilities in rail lines and deep-
water ports, thereby increasing interior
markets and furnishing outlets to exterior
markets; (3) an appreciable increase in capi-
tal for investment-in Texas industrial enter-
prise, largely as the result of accumulation
of oil wealth; and (4) the beginning of a
community of Skilled industrial labor.
The period between the First and Second
World Wars had its continuing factors in
industrial development, though the processes
were interrupted by the depression beginning
in late 1929 and continuing well into the
1930's.
The decade, 1920 to 1930, was notable for
the establishment of the first cheese, con-
densed milk and general dairy products indus-
tries, also the first poultry-packing plants
with a nationwide market. The first creamery
had been established in Texas at Terrell as
early as 1885, but there had been slow devel-
opment until this period.
There was also a revival of cotton-mill
building during the 1920's continuing a devel-
opment that had first begun in the 1890's.
Expansion of the canning and other food-
processing industries, the building materials
industries and continued growth of petroleum
refining also characterized this period.
The national economic depression brought
an abrupt decline in Texas industrial pay-
rolls and value of products, together with a
slowing down of new industrial development.
However, the decline was less than in most
other states, and the census of 1940 showed
almost complete recovery to the level of 1930.
The six leading industries, as measured in
value of products, according to the census of
1940 for operations during the year 1939, were
as follows: Petroleum refining, $698,850,077;
meat packing, $85,461,048; cottonseed oil cake
and meal, $44,406,882; flour and other grain
milling, $41,250,858; oil-field machinery and
tools, $41,149,017; bread and bakery products,
$32,994,866.
The story of the industrial development
with the great industrial shift during theSecond Wonld War and developments since
are sketched in the first paragraphs of this
article. Something of their development dur-
ing the war and since is told on following
pages in the series of individual accounts of
the principal industrial groups, and in the
statistical tables beginning on page 245.
The outlook is for continued industrial
development in Texas over a long period. One
reason is that the state, with all of its indus-
trial expansion in recent years, is still below
its own consuming needs as measured by its
population.
Texas was the twelfth-ranking state in 1947
on basis of value added by manufacture. It
was fourteenth in 1939. Despite this forward
step in rank and the accompanying higher
percentage of increase in both net value of
products and number of industrial workers,
Texas is still distinctly a state with a "colo-
nial" economy. It still derives most of its
income from the sale of its raw products and
spends most of the income for goods manu-
factured outside its borders.
In 1950, Texas had 5.1 per cent of the na-
tion's population, meaning that it had approx-
imately 5.1 per cent of the consuming capacity
of the country. By the census of 1947, it pro-
duced 2.3 per cent of the nation's manufac-
tured goods, on basis of net value added. At
the same time it produced 8 per cent of the
nation's agricultural (crop and livestock)
production value and 17 per cent of the na-
tion's mineral production value.
In other words, the vacuum still exists.
Further, the great expansion of Texas in-
dustry has been primarily in a relatively
small number of industrial communities, such
as petroleum refining. A large part of this
production is of semiprocessed goods intended
for still further manufacture, notably the
products of the big chemical industries. In
consumers' goods, Texas industry still pro-
duces only a small percentage of goods to
meet the Texas demand. Yet it is favorably
located to manufacture for export .beyond its
borders because of both its seaports and its
position adjacent to the developing agricul-
tural areas to the west and immediate north.
But the greatest of all factors favoring
future development is its variety and volume
of natural resources, in addition to its petro-
leum and natural gas. Notable among these
is its iron ores which, after many decades
of attempt at development, have recently
come into utilization, as told on following
pages and on page 225 in the chapter on
mineral resources. Texas lignite and bitumi-
nous coal resources also hold future industrial
development possibilities as both fuel and as
material for the chemical industry.
Texas' crop, livestock, forestry and mineral
products are of great variety and large
volume. With its other favoring factors, its
future industrial development should continue
the rapid pace it has achieved in recent years.
FOOD INDUSTRIES
Over a long period of years, it was thought
that the cotton textile mill was the great
opportunity of Texas for industrial develop-
ment. As things have turned out, cotton mill-
ing has played a secondary part in Texas
industrial progress, and it has been the
diversion of Texas cotton acreage to other
crops that has opened the way for the devel-
opment of industries that take their raw
materials from agriculture.
The greatest of these is the food-processing
group of industries. The classification, Pood
and Kindred Products, led the industries of
Texas in the census of 1947. There were
2,029 establishments, employing 42,817 produc-
tion workers and a total of 57,784. including
administrative, clerical and other employees.
Value added by manufacture was $337,558,000.
Number of production workers in the census
of 1939 was only 25,146.
This is the oldest line of industries in the
state. What might be called the first manu-
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Texas Almanac, 1952-1953, book, 1951; Dallas, Texas. (https://texashistory.unt.edu/ark:/67531/metapth117137/m1/238/: accessed April 28, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.