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INDUSTRIAL RESEARCH REPORTS
MISCELLANEOUS SERIES
REPORT NO. 17
THE CARPET INDUSTRY

PRESENT STATUS AND FUTURE PROSPECTS
by
ROBERT W . KIRK
Published by
INDUSTRIAL RESEARCH U N I T , D E P A R T M E N T OF INDUSTRY
Wharton School of Finance and Commerce
University of Pennsylvania
Distributed by
University of Pennsylvania Press
Philadelphia, Pennsylvania 19104
Copyright © 1970 by the Trustees of the University of Pennsylvania
Library of Congress C a t a l o g C a r d Number 74-140576
M A N U F A C T U R E D IN T H E U N I T E D S T A T E S O F AMERICA
ISBN: 0-8122-9065-8
FOREWORD
In 1967, the Wharton School of Finance and Commerce received a con-

tinuing grant from Aldon Industries, Inc. for the study of management in
the carpet industry, which was assigned by the Dean of the School to the
Industrial Research Unit for administration and research. A preliminary
report issued in February 1969 traced the history and recent developments
in this industry. This study analyzes the current status of the industry,
discusses recent developments, and attempts to estimate what the structure
of the industry is likely to be in the coming decade.
The author of this study, Robert W. Kirk, did the study originally as an
advanced study project in partial fulfillment of the degree of Master of
Business Administration, for the Graduate Division of the Wharton School.
He is currently employed by a management consulting firm. He wishes to
acknowledge the assistance of numerous executives in the industry, in trade
associations, and in companies supplying materials to the industry for their
generous assistance and gracious willingness to spend much time with him.
Mrs. Veronica M. Kent typed the manuscript, Mrs. Rosamond J. Sander-
son edited the manuscript, and Mrs. Margaret E. Doyle handled the admin-
istrative details. Errors or shortcomings are, of course, the responsibility of
the author.
HERBERT R. NORTHRUP, Director

Industrial Research Unit
Wharton School of Finance and Commerce
University of Pennsylvania
Philadelphia
September 1970
STUDIES OF THE CARPET INDUSTRY
BY THE
INDUSTRIAL RESEARCH UNIT
WHARTON SCHOOL OF FINANCE AND COMMERCE
UNIVERSITY OF PENNSYLVANIA
GEORGE M. PARKS, et al., The Economics of Carpeting and Resiliennt

Flooring: An Evaluation and Comparison, 1966. Cloth $5.00, p a p e e r
$1.50.
DAVID C. S T E W A R T , Economics of Carpeting and Resilient Flooring: AÄ

Survey of Published Material and a Questionnaire Summary, 19 666.
Mimeo $1.00.
WILLIAM S. SWIFT, The Carpet Industry in the United States: History and
Recent Developments, 1969. Mimeo $2.00.
Future studies of the carpet industry will examine personnel and
employee relations, marketing, and other aspects of the industry. A
list of publications of the Industrial Research Unit is found on the
back cover.
TABLE OF CONTENTS
PAGE
FOREWORD iii
CHAPTER
I. INTRODUCTION 1
II. HISTORICAL OVERVIEW 3
The Beginning 3
Technical Innovation in the Early Years 4
The Demand for Carpets and Rugs 1825-1941 4
The Emergence of Oligopoly 5
Impact of World War II 5
The Search for Freedom from Wool's Dominance 6
The Tufting Process 7
The Resurgence of Demand 9
The Emergence of New Markets 13
III. CURRENT INDUSTRIAL STRUCTURE AND THE R O L E

OF MERGERS 15
Industrial Structure 15
The Merger Movement 20
The Reasons for Merger Activity 25
Implications for Future Merger Activity 28
ν
vi Table of Contents
CHAPTER PAGE
Effect of Merger Activity on the Industry 29
Further Considerations 30
IV. T H E R O L E OF R E S E A R C H AND D E V E L O P M E N T 31
The Fiber Suppliers 32
Historical Perspective 32
Carpets—One Market Within a Broader Framework 36
Current Research Design 37
The Search for Other Market Areas 38
The Carpet Manufacturers 39
Research Efforts Before World War II 40
The Post-War Period 41
The Importance of Market Orientation 42
Scope and Magnitude of the Research Effort 43
Impact of New Participants 45
V. MANUFACTURING—TECHNOLOGY AND ENVIRONMENT
IN TRANSITION 47
Growth of Output and Capital Expenditure 48
Printing and Continuous Dyeing 48
Impact of the Diversity of Tufting Equipment 52
Future Importance of the Flocking Process 53
The Growing Need for Product Standards 55
Plant Design and Location Considerations 56
Integrated Information Systems Requirements 58
The Prospect of Emerging Barriers to Entry 59

Table of Contents vii
CHAPTER PAGE
VI. E L E M E N T S OF D E M A N D AND P R O D U C T M A R K E T SIZE 61
Income and Price Determinants 61

Other Market Forces 62
Product Differentiation and Carpet Brands 63
Effectiveness of Product Differentiation Efforts 66
Conclusions and Future Outlook 69
Market Forecasts and Determinants 70
Total Market Outlook 70
Private Residential Market 72
Contract-Apartments and Tract Homes 73
Contract-Mobile Homes 74
Contract-Offices 74
Contract-Educational Buildings 74
Contract-Hotels/Motels 75
Contract-The Medical Market 75
The Market for Indoor-Outdoor Carpeting and
Carpet Tiles 75
Indoor-Outdoor Carpeting 75
Carpet Tiles 77
The Fibers Market 79
Prospects for Fiber Brands 79
Summary 82
VII. A S P E C T S OF THE CHANGING DISTRIBUTION/SELLING
PATTERN 84
Current Retail Distribution Pattern 84

Changes in the Retail Distribution Pattern 86
viii Table of Contents
CHAPTER PAGE
The Integrated Merchandising Concept 87

Inherent Changes in the Nature of Retailing 87
Impact of Contract Market Growth 88
Selling the Contract Market 88
Manufacturer's Contract Merchandising Efforts—
Current Contract Merchandising Efforts 90
The Need for New Merchandising Systems 91
The Basic Problems at the Retail Level 92
What the Dealers Want 92
Implications for the Future Role of the Wholesaler 93
The Giffen Industries Program 93
The Manufacturer's Role 94
VIII. CONCLUDING R E M A R K S 96
INDEX 99
LIST OF TABLES
TABLE PAGE
1 U.S. Residential and Commercial Broadloom Carpet and

Rug Shipments, 1950-1968 10
2 Wholesale Value of Domestic Broadloom Carpets and Rugs,
1951-1967 11
3 Broadloom Carpet Shipments by Type, 1951-1968 12
4 Concentration Ratios for the Carpet and Rug Industry,
1963 and 1966 16
5 Selected Financial Data for Carpet Manufacturing Companies,
1967 and 1968 18
6 Number of Employees in the U.S. Carpet Industry, 1958-1966 .... 19
7 Large Mergers in the Carpet Industry, 1948-1968 22
8 Acquisitions of Carpet Manufacturers by Textile Companies 24
9 Acquisitions of Carpet Manufacturers by Resilient Flooring
Producers 24
10 Acquisitions of Furniture Manufacturers by Carpet Producers 25
11 Principal Manufacturers of Man-Made Carpet Fibers 33
12 Production Man-Hours and Value Added, 1958-1966 49
13 Capital Expenditure for New Plant and Equipment, 1958-1966 .... 50
14 Carpet Tufting Equipment in Place, 1963-1968 54
15 Replacement vs. New Use Purchases of Carpets and Rugs,
1966 63
16 Carpet Shipments by Type, 1968 and 1973 71
17 Demand for Carpets in Specific Market Areas, 1968- 71
18 Projected Growth of Indoor-Outdoor Carpet Market,
1968-1973 77
19 Fiber Consumption in Broadloom Carpets 80
20 Projected Fiber Consumption in Broadloom Carpets in 1973 81
ix
CHAPTER I.
Introduction
The United States carpet industry, emerging from nearly two decades of
technological revolution, and perhaps on the verge of a marketing revolu-
tion, has changed dramatically in the past several years. Indeed, even the
name is a misnomer, for the products of this dynamic industry can no longer
be adequately defined as soft floor coverings. As new materials extend the
home interior into the external environment and appear increasingly on
walls, ceilings, and in other areas not considered appropriate just a few
years ago, the "soft surfaces" industry becomes a better definition. Such a
redefinition, however, does not adequately convey the extent of the trans-
formation. In the ten year period between 1958 and 1968, the value of
shipments of tufted carpets and rugs increased 280 percent to rank tufted
carpets as the fourth fastest growing United States industry behind such
growth products as computers and aircraft. 1
Although many of the events which shaped the rebirth of the carpet in-
dustry have been accurately characterized in previous studies, contempor-
ary forces which will determine the industry's future have not been so
clearly defined. As one industry observer has stated:
There are profound changes taking place in the tufted carpet business today—
and the familiar recital of annual sales increases, new fibers, new technologies,
new styles, and new end-uses only begins to tell the story. The carpet industry
is in an age of transformation. The full implications of the changes affecting
it will not be measured and understood completely for some time to come. 2
This study is concerned with the assessment of the future direction of
the United States carpet industry. It attempts to define the significant
factors which have contributed to past developments and will influence the
industry's future, to weigh these variables in terms of their relative impor-
tance, and to investigate the nature of their interrelationships.
1
Susan Margetts, "Masland's Magic Carpet," Dun's Review, Vol. XCIII (April
1969), p. 77.
"Robert J. Saunders, "Objective Self Appraisal," 1969 Carpet Industry Review
(Dalton, Ga.: Carpet and Rug Institute), p. 91.
2 The Carpet Industry
Such a study is of interest not only to the numerous carpet manufacturers
that the layman traditionally associates with the industry. The industry's
dramatic growth has attracted a rather diversified complex of new partici-
pants. In recent years, a growing number of resilient flooring producers,
wholesale carpet distributors, diversified conglomerates, building materials
manufacturers, and large integrated textile firms have entered the industry
through the acquisition of existing carpet manufacturers. In addition, the
industry's future growth is of concern to the numerous suppliers for whom
it is a major market. In 1968 alone, broadloom carpet manufacture con-
sumed an estimated 598 million pounds of man-made fibers produced by
the nation's large chemical corporations, in addition to huge quantities of
synthetic latex and carpet backings. 3 Therefore, the range of corporate
interest in the industry has broadened significantly in the past decade and
will continue to expand as the industry's products penetrate into new
market areas.
The objective of the study becomes one of documenting and interpreting
the changes occurring in the separate functional areas of the industry
within the framework of the prevailing economic environment and assess-
ing the impact of these changes on the future industrial structure. The
factual material for this purpose was drawn from a variety of primary
sources: public documents, plant visits, and interviews and correspondence
with industry leaders. T h e professional viewpoints and projections of in-
dustry leaders are invaluable to any study concerned with the assessment
of that industry's future. In the course of this project, personal interviews
were conducted with numerous individuals at ten major corporations en-
gaged in carpet manufacture, with leading fiber suppliers, and with other
industry representatives. It is believed that the firsthand information thus
obtained accurately reflects the situation in the industry today.
3
Carpet and Rug Institute, Inc., Basic Facts About the Carpet and Rug Industry,
1969 Edition (New York: Carpet and Rug Institute, Inc., 1969), p. 22.
CHAPTER II.
Historical Overview
The present chapter is designed to provide a brief historical review of

the major developments in the American carpet industry since the early
nineteenth century. An exhaustive analysis of the history of carpet manu-
facture is not germane to this study. A research report recently completed
for the Industrial Research Unit of the Wharton School of Finance and
Commerce by Mr. William Swift entitled "The Carpet Industry in the
United States: History and Recent Developments" does, however, offer a
more comprehensive treatment of the subject. There are a number of other
sources listed in Mr. Swift's report and in the bibliography of this study.
THE BEGINNING
Carpet manufacture first appeared in the American colonies in the late
eighteenth century. The basic styles and weaves had already been estab-
lished in Europe and, hence, bore the name of such European cities as
Axminster, Brussels, and Wilton, where they originated. 1 However, Cole
and Williamson note that rug manufacture did not truly evolve to industry
status in the United States until after 1825 when the factory form of organ-
ization developed on a large scale.2 Philadelphia became the center for
carpet manufacture although there were other producers (such as the Tariff
Manufacturing Company which later evolved into the Bigelow-Sanford
Corporation) who were located elsewhere in the Northeast. This era in
the industry, lasting until the late 1840's, was characterized by the manu-
facture of carpets on machines which were entirely hand operated and
little changed from those in use at the turn of the century. 3
1
John S. Ewing and Nancy P. Norton, Broadlooms and Businessmen (Cambridge:
Harvard University Press, 1955), p. 3.
1
Arthur H. Cole and Harold F. Williamson, The American Carpet Manufacture
(Cambridge: Harvard University Press, 1941), p. 12.
3
Ibid., p. 24.
3
TECHNICAL INNOVATION IN THE EARLY YEARS
It was through the inventive genius of Erastus B. Bigelow that power-

driven equipment first appeared in the industry. Bigelow, now known as
the " F a t h e r of the Modern Carpet Industry," obtained his first patents on
the power-driven ingrain loom in May, 1842. 4 In addition to further inven-
tions by Bigelow, other individuals developed and patented the power-
driven Axminster loom in 1874 and, by the end of that decade, a complete
range of power machinery was in operation."' Productivity increases with
this new equipment were substantial. However, once this period of innova-
tion had run its course, further major inventions and resultant productivity
gains were not forthcoming, and the state of the arts in the industry re-
mained basically unchanged until World War II."
THE DEMAND FOR CARPETS AND RUGS 1825-1941

T h e carpet industry was well established in America by 1830. Although
Wilton, Venetian, and Axminster weaves were produced, ingrain carpet-
ing held the largest market share for the remainder of the century. By
the early 1900's, however, the mass demand for carpeting had shifted
upwards to the more expensive Axminster weave and production of in-
grain carpeting had ceased by 1933. 7 This shift in demand to more ex-
pensive weaves was accompanied by the growing acceptance of wide-width
or " b r o a d l o o m " carpeting. T h e popularity of broadloom has continued
and, in 1968, broadloom shipments accounted for 81 percent of industry
dollar volume. 8
Production of carpets and rugs prior to World War II reached a maxi-
mum of 83.2 million square yards in 1923.'' In subsequent years, the in-
dustry encountered increasing competition from other consumer durables
(especially the automobile) and this factor, in conjunction with the Great
Depression, resulted in a generally declining demand until the war years.
' Ibid., p. 55. Ingrain carpeting was an inexpensive, flat weave fabric which supplied
the mass market of the nineteenth century.
r
' Ibid., p. 73.
"William A. Reynolds, Innovation in the United States Carpet Industry: 1947-1963
(Princeton: D. Van Nostrand Company, 1968), p. 29.
7
American Carpet Institute, Inc., Basic Facts About the Carpet and Rug Industry,
1962 Edition ( N e w York: The Institute, 1962), p. 5.
'Carpet and Rug Institute, Inc., Basic Facts About the Carpet and Rug Industry,
1969 Edition ( N e w York: Carpet and Rug Institute, Inc., 1969), p. 1.
"U.S. Bureau of the Census, Biennial Census of Manufactures: 1923, p. 316.
Historical Overview 5
THE EMERGENCE OF OLIGOPOLY
By 1939, five companies (Bigelow-Sanford, Alexander Smith, James

Lees, Firth, and Mohawk) accounted for more than 60 percent of industry
sales.1" The primary factors contributing to large company size arose
mainly from the intensely competitive nature of the industry. Price com-
petition sustained industry profits at low levels and, with the ensuing de-
crease in demand after 1923, the small, under-capitalized firms could
not economically survive. Also, the highly capital intensive nature of the
industry, in conjunction with a declining demand, prevented the entry of
new firms.
In addition, the diversification and change in consumer taste, which
developed in the late 1800's, place increased emphasis on style. 11 There-
fore, the large concern wih an experienced and well paid design depart-
ment held a definite advantage over the small plant operation.
IMPACT OF WORLD WAR II
In the years between 1830 and the inception of World War II, wool
had been the basic fiber for carpet manufacture. However, during the war
years, wool was declared an essential commodity by the government and
placed on allocation. In addition, a price ceiling was placed on carpeting
to prevent inflation. These factors forced the mills to curtail much of
their carpet manufacturing operations and convert their facilities to the
production of war goods such as blankets and cotton duck. 12
Fluctuating prices for wool had been a constant inventory control prob-
lem in the 1930's and, with further restrictions placed on its supply, there
were efforts made by various mills to find acceptable substitutes. The
major emphasis was initially on cotton substitution, but later shifted to
wool-rayon blends. The first rugs composed of this wool-rayon combina-
tion were offered for sale in 1940 by Firth and Bigelow-Sanford. 13 It is
interesting to note that the major research effort required to render these
synthetic fibers acceptable for use in carpet manufacture was conducted by
the carpet manufacturers and not the fiber producer.
Ewing and Norton, op. cit., p. 300.

" Ibid., p. 92.
Ibid., p. 299.
13
Ibid., p. 287.
The pent-up demand and rising disposable consumer income following
the termination of World War II insured an initially expanding market
for carpets and rugs. Wool and other raw materials, the majority of which
had generally been imported from overseas, again became readily avail-
able as the producing countries had been forced to stockpile these items
during the war years. Manufacturers' shipments of broadloom carpets
totaled 85.7 million square yards in 1950 14 and in the process 197.9 million
clean pounds of carpet wool were consumed. 15
Although no one company clearly dominated the industry, by 1947 a
"big three" had emerged. This group was composed of Bigelow, Smith,
and Mohawk and accounted for 43 percent of industry sales. 16 Faced with
increasing demand and an adequate supply of raw materials, their future
seemed secure.
THE SEARCH FOR FREEDOM FROM

WOOL'S DOMINANCE
This happy situation did not exist for long. In December, 1950, wool
imports from China, a primary supplier, were prohibited under the "Trading
with the Enemy Act." 17 Subsequently, both India and Pakistan placed
restrictions on wool exports. As the demand for carpet wool exceeded
supply, "the weighted average price . . . rose from 68.1 cents per pound
in January 1950 to 213.4 cents per pound in March 1951." 1 * Since carpet
wool was the largest single element in a mill's raw materials cost and raw
material cost represented 50 percent of production expenses in the carpet
industry, the mill was forced to raise the price of its finished goods. The
average price of carpeting rose 20 percent in the first nine months of
1950. 19 As a direct result, sales volume fell off sharply and profits suffered.
For the remainder of the 1950's and even into the next decade, the in-
dustry fought a constant battle against the rising cost of wool.
14
Carpet and Rug Institute, Inc., note 8, supra, p. 4.
" U . S . Department of Agriculture, Wool Statistics and Related Data 1920-1964,
Statistical Bulletin No. 363, 1965, p. 86.
"Stanley M. Sava, "An Economic Analysis of the Carpet and Rug Industry in the
United States." (Unpublished Advanced Study Project, Wharton School of Finance
and Commerce, University of Pennsylvania, 1953), p. 106.
"U.S., Code of Federal Regulations, Title 31, Paragraph 500.101-500.808.
18
Reynolds, op. cit., p. 60.
""Carpets Go Synthetic," Business Week, January 19, 1946, p. 79.
Interest in synthetic fibers had decreased substantially after the war,
but the cost-price squeeze with wool stimulated the mills to return to their
work in this area. In 1950, the industry, led by Lees, introduced carpets
made from cellulose acetate rayon and blends with wool.20 Rayon usage
increased steadily until the late 1950's at which time nylon became the
industry's second most important fiber.
In 1958, du Pont introduced "Type 501" continuous filament nylon
yarn specifically for carpets. The advantages of this product were im-
mediately obvious. It required no spinning, pilling was substantially re-
duced, and the carpets produced from it could be piece dyed, thus reducing
the need to carry large inventories of colored yarn or finished carpet. It
enjoyed phenomenal market acceptance from the time of its introduction.
In 1955, the Chemstrand Corporation, a joint venture between Mon-
santo and American Viscose, introduced "Acrilan" acrylic fiber to the
carpet manufacturing trade.21 The acrylics were a bulky fiber which
offered excellent cover with a texture and appearance very similar to wool.
They displayed excellent resilience and, in addition, were slightly more dur-
able than wool.
By 1960, the man-made fibers (nylon and acrylics) accounted for 23
percent of total surface fiber consumption in broadloom carpets and were
well on their way to future dominance in the industry.22 Therefore, with
the advent of man-made fibers, the carpet manufacturer finally managed
to escape from the traditionally fluctuating price and supply situation of
the wool market and adopt pricing policies which were more nearly at-
tuned to market demand. "It is probable that 1958 marked the turning
point in carpet pricing"23 as, at that time, the wool supply situation eased
somewhat with the passage of legislation to permit duty-free import of
carpet wools and the rigid price policies of the fiber producers served to
stabilize factor prices.
THE TUFTING PROCESS
The technological revolution which swept through the industry in the

late 1950's was not solely the result of the efforts of the fiber producing
Annual Report, 1950, James Lees and Sons, Inc.

Robert Sheehan, "Turnaround Year for Monsanto," Fortune, Vol. LXX (Septem-
ber 1964), p. 250.
22
Carpet and Rug Institute, Inc., note 8, supra, p. 22.
23
Reynolds, op. cit., p. 131.
oligopoly for the tufting process must be given major credit for the in-
dustry's rebirth. Indeed, it is highly probable that either innovation could
not have been so dramatically successful were it not for the other.
T h e process itself is basically akin to a sewing operation. Face yarn is
inserted into a woven backing by thousands of needles working simultane-
ously and the inserted tufts are permanently fixed in place by the addition
of latex to the carpet back. It is an inherently faster and more economical
method of manufacture than are the traditional weaving processes.
T h e tufted textile industry originated in the vicinity of Dalton, Georgia,
in the late nineteenth century. Use of the basic tufting principle in the
manufacture of carpets did not, however, seriously occur until after the
close of World War II. 24 Since that time, equipment for the production
of carpets and rugs has been substantially improved and modified and pat-
tern attachment devices developed which permit styling versatility pre-
viously only possible in woven goods.
T h e firms who initially adopted the tufting process were not the older
established producers but rather a number of new firms who entered the
industry after the war years. Between 1946 and 1950, mills such as Cabin
Crafts, Georgia R u g Mills, Ε. T. Barwick Mills, and Aldon Rug Mills,
most of whom were based in the Dalton, Georgia area, began the manu-
facture of tufted carpets and rugs. It was not until the early 1950's that
the established mills began to move into the tufting field. By that time,
the new, innovating firms were already established and other new firms
were entering this expanding business at an increasing rate. Between
1951 and 1955, forty-one new producers of tufted carpeting entered the
industry and, in the process, the old oligopolistic industrial structure of
the forties ceased to exist.2"'
T h e rapid entry of new firms in the 1950's signified that those barriers
to entry which were operable in an earlier period no longer existed. With
the advent of the tufting process, reduced capital investment was required
because of the greater productivity of the tufting machine. It has been
noted that tufting machines produce broadloom eight to ten times faster
than Axminster or Wilton looms and also reduce the labor component in
the total cost structure from 33 percent to an average of 12 percent. 211
As a result, the optimal plant scale was significantly reduced. Furthermore,
21
Ibid., p. 80.
25
For a comprehensive analysis of the entry of new firms and their effect upon the
market structure, see Reynolds, op. cit., pp. 89-95.
M
"Flying Carpets," Barron's, February 21, 1966, p. 3.
the high degree of skill necessary to the operation of weaving equipment
was not required in the case of tufting and training requirements for the
workers were minimal. Finally, the lower production costs of tufted prod-
ucts enabled the new firms to pursue aggressive pricing practices. Such a
policy permitted them not only to capture a share of the existing market,
but also to open up new markets among lower and middle income groups.
Market acceptance of tufted products is evidenced by the fact that by
1958, over 50 percent of broadloom carpet shipments were tufted. 27
The new firms had the additional advantage of a southern location
where labor was plentiful, less expensive than in the North, and free from
union influence. Also, these firms started with new facilities which pos-
sessed definite advantages in more efficient plant layout and materials
handling than existed in the northern mills. As the woven carpet manu-
facturers began to enter the tufted carpet industry in the early fifties, they
did so either by acquiring firms which were located in the South or by
building new production facilities in that area. By 1963, nearly 63 percent
of total carpet mill locations were in the South .- s
THE RESURGENCE OF DEMAND

As evidenced in Table 1, the demand for broadloom carpeting began
to accelerate rapidly by 1958. One of the principal reasons lies in the
interrelationship of the tufting process and man-made fibers. In the early
fifties, the tufters were faced with the same fiber supply problems as the
producers of woven carpeting. Tufted carpets were, however, generally
made of cotton and were considered inferior to wool carpets in most
product performance areas. Had the tufting producers been forced to
rely solely on the factor market in existence at that time, their success
would probably have been much more limited. Such was not the case.
The innovators in the tufting field, firms such as Ε. T. Barwick and
Coronet, immediately committed themselves to the use of man-made fibers
to a much greater extent than the producers of woven products. This
marriage of a less expensive processing technique and the inherent price
stability of the man-made fibers served to drive the price of tufted carpet-
ing steadily downward, thereby opening up new markets for the product.
The effects of this technology on the price structure are clearly obvious
" Carpet and Rug Institute, Inc., note 8, supra, p. 5.
U.S. Bureau of the Census, Location of Manufacturing Plants 1963, MC63(5)-3-2,

pp. 20-21.
TABLE 1. U. S. Residential and Commercial Broadloom

Carpet and Rug Shipments
1950-1968
Square Yards Estimated Dollar Value

(millions) (millions)
1950 85.7 $ 536.7

1951 64.7 449.2
1952 73.1 421.8
1953 79.7 446.1
1954 82.9 434.0
1955 98.3 520.9
1956 110.3 569.3
1957 112.2 567.6
1958 122.6 559.4
1959 144.5 670.1
1960 148.2 667.1
1961 160.9 686.8
1962 194.0 782.7
1963 223.4 882.6
1964 263.8 1,034.5
1965 301.9 1,135.0
1966 331.3 1,208.5
1967 358.1 1,294.4
1968 435.0 1,636.7
Source: C a r p e t and Rug Institute, Basic Facts About the Carpet and Rug
Industry, 1969.
f r o m T a b l e 2. In the period between 1951 and 1960, the average whole-

sale price of broadloom carpeting fell f r o m $ 6 . 9 4 to $4.50 per square
yard. Also, in this period, the percentage of the total market controlled
by tufted products went f r o m 9.4 percent to 67 percent, as noted in
T a b l e 3. T h e inevitable result of such economics has been the continued
growth of tufted's market share to a high of 90.7 percent in 1960 and
the subsequent decline of d e m a n d for woven goods.
T h e r e were also other, more subtle factors which contributed to this
TABLE 2. Wholesale Value of Domestic Broadloom

Carpets and Rugs
1951-1967
Average Wholesale Wholesale Price

Square Yard Value Index for Carpet
(dollars) (annual average)
1951 6.94 117.5

1952 5.77 98.0
1953 5.60 99.6
1954 5.24 95.8
1955 5.30 98.8
1956 5.16 101.7
1957 5.06 104.1
1958 4.56 97.7
1959 4.64 98.2
1960 4.50 100.0
1961 4.27 97.3
1962 4.03 96.1
1963 3.95 94.3
1964 3.92 97.7
1965 3.76 94.4
1966 3.65 93.9
1967 3.61 89.5
Source: Average square yard value from Carpet and Rug Institute, Basic Facts
About the Carpet and Rug Industry, 1969. Wholesale Price Index from
U.S. Bureau of Labor Statistics, Wholesale Price and Price Indexes,
Code No. 1231.
resurgence of demand. A product may be technically sound and attrac-

tively priced and, yet, experience little demand at the retail level if con-
sumer awareness has not been adequately stimulated. T h e innovating firms
in the tufted field were mostly new enterprises with little available capital
for promotional activities. Into this void stepped the fiber producing
oligopoly, firmly committed to establishing a consumer franchise for their
products. The success of such firms as du Pont with " 5 0 1 " nylon and
TABLE 3. Broadloom Carpet Shipments by Type

195]-1968
Percent of Total Yards

Woven* Tufted
1951 90.6 9.4

1952 85.7 14.3
1953 79.6 20.4
1954 67.4 32.6
1955 64.0 36.0
1956 57.9 42.1
1957 49.7 50.3
1958 41.9 58.1
1959 40.5 59.5
1960 33.0 67.0
1961 27.4 72.6
1962 25.4 74.6
1963 21.4 78.6
1964 16.4 83.6
1965 13.8 86.2
1966 12.8 87.2
1967 11.2 88.8
1968 9.3 90.7
* Includes Axminster, wilton, velvet, chenille, and knitted carpets.

Source: Carpet and Rug Institute, Inc., Basic Facts About the Carpet and Rug
Industry, 1969.
Monsanto with "Acrilan" are well known. Also, through fiber licensing
programs, they tied the carpet manufacturer into their consumer advertis-
ing campaigns. In mid-1964, there were fifty franchised carpet producers
using du Pont " 5 0 1 " and thirty-four using Chemstrand's nylon and acrylic
products.- 1 ' The end result of this intensive promotional effort was a new
glamour image for the carpct industry and its products, and a resultant
level of consumer interest never previously attained." 0
28
Barron's, July 6, 1964, p. 19.
3,1
T h e subject of branded merchandise is discussed in a later section of this study.
THE EMERGENCE OF NEW MARKETS

As prices moved steadily downward, the consumer no longer looked
upon carpeting as a luxury product beyond the reach of his income. The
design and styling versatility offered by the new man-made fibers and
their technological contribution to products with improved performance
characteristics further whetted the consumer's appetite. The result was
a demand for carpeting for use in other areas of the home in addition to
those areas where the product had been traditionally accepted. Carpets
increasingly appeared in bedrooms, bathrooms, and family rooms.
One of the most dramatic examples has been the growth of indoor-
outdoor carpeting. Initially composed of chemically resistant poly-
propylene fibers and manufactured by a process known as needlepunching,
the product revolutionized traditional thinking on potential end-use areas
for carpets in the m i d - s i x t i e s . I n d o o r - o u t d o o r carpet not only found
applications outdoors on patios and walkways. The greatest percentage
of the product went into indoor use in basements, recreations areas, and
kitchens. Recent product offerings based on the tufting process and the
use of solution-dyed acrylic yarns have added new style dimensions which
promise further to expand this market.
While new markets were developing for residential carpeting, dramatic
growth in the commercial market went almost unnoticed until the early
1960's. Representing less than 10 percent of total yardage sold in 1956,
some estimates place current volume at nearly 33 percent and note that
sdes to this area have increased 700 percent in the 1960-1968 period. 82
This market, composed of motels, hotels, office buildings, etc., was not
obtained on the basis of decreasing price as in the case of residential de-
mand. Higher priced woven goods have traditionally dominated the market.
The principal selling point has been carpet's functionality in such areas
as acoustics, insulation, maintenance and safety. Recently, expanded pro-
duct research into these areas is aimed at supporting greater sales increases
to this market in the future.
Equipped with increasingly sophisticated production techniques in car-
pet printing, construction, continuous dyeing, and flocking, and utilizing
improved fiber technology, the industry is presently considering entirely
new markets. Serious effort has already been expended in the develop-
ment of carpeting for walls and future end-use markets could include ceil-
ings, roofs, lawns, and a great many other outdoor surfaces.
31
"Now You Can Have a Wall to Wall Lawn," Business Week, July 16, 1966, p. 89.
32
"Spring Signals," Home Furnishings Daily, January 2, 1969, p. 10.
Associated with this phenomenal growth and transformation, however,

are a host of new and challenging problems. Management today faces de-
cisions the consequences of which will probably again change the face
of the industry. One of the more visible harbingers of this change lies in
the nature of new participants in the industry. This topic is considered in
some detail in the next chapter.
CHAPTER ΙΠ.
Current Industrial Structure

and the Role of Mergers
While limited capital requirements allow for ease of entry into the
industry, there is a substantial turnover rate among the smaller firms.
This high turnover complicates any effort to derive an exact estimate of
the number of firms in the industry at one point in time. According to
the Tufted Carpet and Rug Institute estimates in 1968, 225 companies
were at that time engaged in carpet manufacturing. Of this total, approxi-
mately twenty-five were ranked as major manufacturers.
INDUSTRIAL STRUCTURE
Preliminary data on concentration ratios permit some insight into the
relative importance of these major firms. In order to interpret the data
as published by the Bureau of the Census, however, it is necessary to un-
derstand the definition of "carpet and rug industry" advanced by the
Budget Bureau in 1957. Under this definition, the industry is comprised
of two four-digit Standard Industrial Classifications. Standard Industrial
Classification No. 2271 included those firms primarily engaged in weav-
ing carpets and rugs from any textile yarn and whose basic products are
Axminster, Wilton, and Velvet constructions.1 Standard Industrial Clas-
sification No. 2272 is comprised of those firms primarily producing tufted
carpets and rugs from any textile fiber and important products are tufted
carpeting, scatter rugs, and bathmats.2 It is significant that finishers of
these products are also included, as much commission or contract finish-
ing exists in this segment of the industry.
The concentration ratio data which have been developed under this
definition of the industry are based on value added in the case of SIC
2271 because of the extensive duplication which exists in product trans-
1
U.S., Bureau of Budget, Standard Industrial Classification Manual (Washington:
U.S. Government Printing Office, 1957), p. 57.
'Ibid.
15
TABLE 4. Concentration Ratios for the Carpet and Rug

Industry 1963 and 1966
Value Added
Percent Accounted for by
Total Four Largest Eight Largest

SIC Date (dollars) Firms Firms
2271 1963 120,004,000 67 88

2271 1966 115,678,000 75 88
Value of Shipments
2272 1963 801,804,000 25 41

2272 1966 1,206,422,000 26 43
Source: U.S. Bureau of the Census, Annual Survey of Manufactures: 1966,

Value-of-Shipment Concentration Ratios by Industry, M66(AS)-8. U.S.
Government Printing Office, Washington, D.C., 1968, p. 7.
fers in the w o v e n g o o d s s e g m e n t . D a t a f o r t u f t e d p r o d u c t s are based

o n v a l u e of s h i p m e n t s . T h e s e figures are p r e s e n t e d in T a b l e 4. T h e high
degree of c o n c e n t r a t i o n in S I C 2 2 7 1 is, of c o u r s e , a t t r i b u t a b l e to the
relatively few firms r e m a i n i n g in this declining b u s i n e s s a n d b a r r i e r s to
e n t r y r e f e r r e d to in C h a p t e r II. It is also o b v i o u s that the level of c o n -
c e n t r a t i o n in t h e t u f t e d c a r p e t i n d u s t r y is q u i t e low. A s p r e v i o u s l y n o t e d ,
this s e g m e n t of the i n d u s t r y , c o m p r i s i n g o v e r 9 0 p e r c e n t of b r o a d l o o m
c a r p e t s h i p m e n t s in 1 9 6 8 , is highly c o m p e t i t i v e a n d n o single c o m p a n y
e n j o y s a d o m i n a n t p o s i t i o n . Ε . T . B a r w i c k I n d u s t r i e s , Inc., t h e largest
single p r o d u c e r of t u f t e d c a r p e t s , e s t i m a t e s t h a t "its sales of t u f t e d c a r p e t s
d u r i n g 1 9 6 7 c o n s t i t u t e d a p p r o x i m a t e l y 11 p e r c e n t of t h e total sales in
t h e U n i t e d S t a t e s of t u f t e d c a r p e t s a n d rugs." : i
A c t u a l l y , t h e i n c l u s i o n of finishers in S I C 2 2 7 2 , t h e division of the
industry into t w o distinct segments, and other related definitional problems
s o m e w h a t u n d e r s t a t e s t h e d e g r e e of c o n c e n t r a t i o n w h i c h o n e c o u l d arrive
at if w o r k i n g f r o m a d i f f e r e n t set of a s s u m p t i o n s . If the i n d u s t r y ' s p r o d u c t s
are c o n s i d e r e d relatively h o m o g e n e o u s a n d if only b r o a d l o o m s h i p m e n t s
'Prospectus, August 8, 1968, Ε. T. Barwick Industries, Inc.

Current Industrial Structure and Role of Mergers 17
produced by carpet manufacturers are included, the ratio statistics become

much higher. Some observers have recently estimated that as few as five
major carpet manufacturers may account for almost 50 percent of total
industry volume. 4 Regardless of the actual statistics, the larger firms have
not recently enjoyed any significantly effective barriers to competition.
In comparison with the larger sized companies found in other primary
manufacturing industries, the major carpet producers are not giants. Only
one of the top producers, Mohasco Industries, was included in the listing
of 1968's 500 largest industrial corporations as compiled by Fortune
magazine. There were, however, ten other corporations in the list who
own carpet manufacturers among their subsidiary operations. 5 If auto-
motive carpeting is included in company sales, Ε. T. Barwick Industries
challenges Mohasco Industries as the largest manufacturer in the business.
Lees Carpets (a division of Burlington Industries) and Bigelow-Sanford
(a subsidiary of Sperry and Hutchinson), respectively, round out the list
of the top four manufacturers. Because of the fact that a number of the
more important producers are either privately held corporations or sub-
sidiary operations within larger firms, it is difficult to rank industry mem-
bers in terms of size. A list of other major public corporations would in-
clude Coronet Industries, C. H. Masland and Sons, Trend Industries,
Ozite Corporation, Aldon Industries, Ludlow, Sequoyah Industries, and
Berven. Other leading private and subsidiary companies are Cabin Crafts,
Crown Tuft, Callaway Mills, Magee Carpet Company, World Carpet Mills,
Gulliston Carpet, Ε and Β Mills, and Painter Carpets. Selected financial
data for a number of these firms are given in Table 5.
The carpet manufacturers are process integrated to various degrees.
A majority, probably in the vicinity of 80 percent, own dyeing facilities.
The cost savings over contracting this operation out to commission dyers
is approximately 35 to 50 percent. Relatively few firms have their own
yarn spinning facilities however. The tufters who entered the industry in
the early fifties depended heavily on continuous filament yarns (which
did not require spinning). In addition, the cost savings generated through
internal ownership of spinning facilities are not nearly as significant as
for the dyeing operation. Only one major firm currently produces its own
man-made fiber and that firm does so only for a small portion of its total
yarn requirement.
The industry sells its product either direct to the retailer or through
wholesale distributors. In 1968, it is estimated that approximately 70
'Modern Floor Coverings, Vol. LXXXII (January 1969), p. 44.

6
Fortune, Vol. LXXIX (May 15, 1969), pp. 168-184.
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age of distributors owned by carpet m a n u f a c t u r e r s is very low and owner-
ship of retail outlets is practically nonexistent.
TABLE 6 . Number of Employees in the U.S. Carpet Industry

1958-1966
Woven Tufted
Year (SIC 2271) (SIC 2272) Total
1958 18,151 11,528 29,679

1959 19,746 12,487 32,233
1960 18,404 13,272 31,676
1961 16,410 14,787 31,197
1962 14,476 17,528 32,004
1963 13,398 19,589 32,987
1964 12,113 24,852 36,965
1965 10,584 26,620 37,204
1966 9,676 28,212 37,888
Source: 1958-1963, 1963 Census of Manufactures, Woven Carpets and Rugs;

Tufted Carpets and Rugs, Report MC63(P)-22 D1 and 2, Table 1, p. 1
both reports.
1964-1965, U.S. Bureau of the Census, Annual Survey of Manufac-
tures: 1964 and 1965, General Statistics for Industry Groups and
Industries (U.S. Government Printing Office, Washington, D.C.,
1968), pp. 34-35.
1966, U.S. Bureau of the Census, Annual Survey of Manufactures:
1966, General Statistics for Industry Groups and Industries, M66(AS)-1
(U.S. Government Printing Office, Washington, D.C., 1967), p. 6.
"Carpet and Rug Institute, Inc., Basic Facts About the Carpet and Rug Industry,
1969 Edition (New York: Carpet and Rug Institute, Inc., 1969), p. 18.
Any analysis of the manufacturing cost structure must be cognizant of

the three distinctly unique processes currently utilized in carpet manu-
facture. Reference has already been made to the relatively high labor
and capital costs involved in the weaving process. In contrast, the average
cost breakdown for the tufting process is essentially 70-78 percent raw
materials, 11-18 percent labor, and 8-11 percent overhead. Those tufters
who are currently utilizing recently introduced finishing technology, such
as printing and continuous dyeing, are, however, encountering higher
capital costs. T h e needlepunch or needlebond process requires no yarn
spinning nor carpet backing operation. It is a high speed, automated
process in which raw materials account for approximately 90 percent of
production costs. 7 In general, carpet manufacture is a high variable cost
industry, a fact easily verified during periods of slack d e m a n d — w h e n the
carpet producers are prone rapidly to suspend operations and drastically
to reduce their inventories.
T h e lower labor requirements of the tufted process in conjunction with
the dramatic increase in tufted carpet production at the expense of woven
carpeting has resulted in a relative stabilization of the total number of
employees in the industry when compared to the increase in total volume
of shipments. As shown in Table 6, there were nearly 30,000 employees
in the industry in 1958, 39 percent of whom were engaged in the tufted
segment. In 1966, 37,888 people were employed of which 75.5 percent
were in the tufting sector.
THE MERGER MOVEMENT
Although the foregoing statistics characterize the current structure of the

industry, the basic elements of structure cannot hope to convey the capac-
ity for the inducement of further change which exists among a number of
the firms in the industry. Previous reference has been made to the diversi-
fied interests represented by large organizations who have entered the indus-
try via the acquisition route over the past several years. Also, a number of
leading carpet manufacturers who have retained their ownerships have
recently been diversifying into other industries. In order to explore further
7
Standard and Poor's Industry Surveys: "Home Furnishings, Basic Analysis," March
21, 1968, p. H9.
the implications of such movements, it is necessary to define more carefully

the identity and nature of these firms, their effect on the industry to date,
and their plans for the future.
A list of acquisitions in the industry in the 1948-1968 period is shown in
Table 7. The Federal Trade Commission compiles such data for all four-
digit SIC industries in which the acquired firm had assets of ten million
dollars or more. This includes 70 percent of all mergers which were con-
summated in the period stated. s Unfortunately, no such comprehensive
data are published for firms under the ten million doliar asset category, a
range in which a very large percentage of carpet industry activity falls. In
order to compensate for this paucity of data, a supplementary listing of
mergers and acquisitions has been prepared. Table 8 shows the major
acquisitions made by textile firms and the date of consummation.
Table 9 shows the acquisitions of carpet producers made by large resil-
ient flooring producers.
As these data point out, the merger movement has gained momentum in
the past few years. In 1968, there were 27 significant mergers in the floor
coverings industry. In addition, there were a number of important merger
attempts which failed to materialize. A m o n g these were the proposed mer-
gers of Ozite Corporation with Berven Carpets, M o h a s c o Industries with
American Standard, and of Aldon R u g Mills into Ling-Temco-Vought.
The merger movement can be divided into four distinct periods. T h e first
period, extending approximately from 1964-1967, involved a substantial
influx of textile firms into the carpet industry. T h e second period, begin-
ning in 1967 and continuing to the present, is characterized by the move-
ment of resilient flooring producers into the industry. T h e third and fourth
dimensions of the merger movement are largely occurring today. These are
the acquisition of furniture companies by carpet manufacturers and the
movement by a number of leading private carpet firms to go public. Some
of the more important acquisitions of furniture firms are shown in Table 10.
They are important in the respect that the acquiring firms are leading par-
ticipants in the carpet industry. Also, at the time of this writing, another
leading carpet manufacturer, Ε. T. Barwick Industries, was conducting
negotiations for the purchase of its first furniture firm.
The movement by the major tufters to go public was initiated by Coronet
s
Federal T r a d e Commission, Large Mergers in Manufacturing and Mining: 1948-
1968, « - 6 - / 5 - 2 , April 1969, p. 10.
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TABLE 8. Acquisitions of Carpet Manufacturers

by Textile Companies
Acquiring Company Acquired Company Date
West Point Manufacturing Cabin Crafts 1946

Burlington Industries James Lees and Sons 1960
J. P. Stevens A & Μ Karagheusian 1964
Dan River Mills Wunda Weve Carpet Co. 1965
Collins & Aikman Painter Carpet Mills 1965
Fieldcrest Mills Karastan Carpet Mills 1967
Morgan Carpet Mills 1967
Spring Mills Carolina Carpet Mills 1967
Deering Milliken Callaway Mills 1968
Source: Various trade journals, newspapers, and public records among which
were Flooring Magazine, Modern Floor Coverings, The Wall Street
Journal, and Moody's Industrials.
TABLE 9. Acquisitions of Carpet Manufacturers

By Resilient Flooring Producers
Congoleum-Nairn Lewis Carpet Mills 1967

American Biltrite Noxon Mills 1967
Armstrong Cork Ε & Β Mills 1967
Kentile Floors Hieghtsdown Rug
Johns-Manville Crown-Tuft 1968
Mannington Mills Wellco Carpet 1968
Industries in 1963. Public offerings accelerated greatly in 1968, with Trend

Mills, Sequoyah Industries, Crown Crafts, and Ε. T. Barwick all going the
route. In the first half of 1969, both Aldon Industries and Berven Carpets
followed suit and the trend is currently expected to continue.
TABLE 10. Acquisitions of Furniture Manufacturers

By Carpet Producers
Mohasco Industries Futurian Mfg. Company 1963

Super Sagless Spring 1964
Barcalo Mfg. Company 1965
Chromcraft, Inc. 1965
Basic Witz Furniture 1965
Burlington Industries Globe Furniture 1966
Coronet Industries Tri-Par Mfg. Company 1968
Shelby Williams 1968
Armstrong Cork Thomasville Furniture 1968
Sequoyah Industries White Swan Industries 1968
Cheatham Furniture 1969
THE REASONS FOR MERGER ACTIVITY
The foregoing has established the nature of the participants in the merger
movement which is sweeping through the industry today. There have, of
course, been a number of mergers between carpet firms such as the recent
acquisition of Walter Carpet Mills by Ludlow or Beautytuft by Jorges
Carpet Mills. The activities previously noted, however, are perhaps more
indicative of the manner in which the industry is being transformed today.
It is now fruitful to ascertain the reasons behind the dramatic increase in
merger activity. These would appear to fall under a number of general

headings as follows:
1. The need for additional capital. This is probably the primary reason
on the part of most carpet manufacturers. Many of the acquired mills can
be classified as tufters who entered the industry with limited capital and
were successful in building u p substantial businesses. With the great surge
in demand for tufted goods, however, came increased needs for new plant
and equipment for expansion abroad as well as in the United States. The
internal generation of funds simply has not been adequate to meet in-
creased capital requirements and the inevitable result has been attempts
to attract new capital either through public offerings or mergers. One man-
ager of such a carpet firm which had recently been absorbed by a resilient
flooring producer offered this insight: "We were suddenly faced with the
need, not only for new plant, but for new tufting equipment which utilized
the finer gauges, for new printing and dyeing ranges, and more effective
marketing services. It was a case of growth or stagnation and we did not
really consider the latter much of a possibility."''
T h e need for additional capital has not been restricted to the smaller
carpet firms. One of the largest firms in the industry, Bigelow-Sanford,
sought its merger partner because of the need for cash and working capital
with which to institute an expansion program that would boost output and
broaden its lines. 10
2. Advantages arising from the combination of related businesses. Cer-
tainly a textile firm such as Burlington Industries, involved in the conversion
of yarn into fabric, could look upon the carpet manufacturing process as a
logical extension of its business. That the technologies are similar and
adaptable is evidenced by Lees in its statement that " . . . future growth and
security of our business would be greatly enhanced by the assistance avail-
able from Burlington in research, product development and utilization of
staff department." 11 The tools of management, of course, are applicable
to any business and acquired firms can expect to receive sorely needed
assistance from the parent in such areas as warehousing, electronic data
processing systems, inventory control, and financial analysis.
3. Diversification as a hedge against economic fluctuations in one in-
dustry. The concept of diversification is relatable to many of the mergers
previously referenced. It is interesting to note that the bulk of resilient
"Field notes from personal interviews conducted by the author in August 1969.
10
"S & Η Makes Cash Bid for Bigelow," Home Furnishings Daily, January 27,
1967, p. 1.
" Annual Report, 1959, James Lees and Sons, Inc.
flooring producers moved into the carpet industry in a year in which pro-
duction in the resilient industry had declined nearly 14 percent, the first
decline since World War II.12 In addition to this factor, by 1967 the success
of indoor-outdoor carpeting was well established and the future potential
for carpeting in the contract market was clearly apparent. The resilient
industry, realizing that the carpet producers were in effect developing
products that could perform like resilient flooring, viewed the addition of
carpeting to their lines as a natural consequence. The movement of carpet
firms into the furniture industry is only partially explained by a desire to
diversify. For some, however, it was the sole intent. Mohasco Industries,
faced with profitability problems in the mid-sixties, acquired the Futorian
Manufacturing Company in order to provide "sorely needed earnings." 13
4. Increase company size in order to more effectively compete in na-
tional and international markets. This factor is closely related to the need
for additional capital but goes beyond pure capital requirements. For in-
stance, it may involve a company which requires increased marketing power
and does not possess the necessary financial strength to purchase it. There-
fore, a merger is effected with another firm with similar retail and wholesale
interests in order to derive a mutual advantage from the boost in sales
strength.
5. The acquired company possesses characteristics which are uniquely
suited to the parent company's future plans and strategies. In many ways,
this is the most difficult and, yet, one of the most useful concepts to evalu-
ate. It essentially points out that many acquisitions can be explained in
terms of their relationships to the future merchandising systems design of
the parent company. Johns-Manville, for example, in its acquisition of a
major carpet producer envisioned a construction materials or building
products system as evidenced by its statement that, "the addition of carpet-
ing also places the company in a position to market a coordinated interior
design package of floors, ceilings, and walls to institutional, commercial,
and residential building markets." 14 American Biltrite has attempted to
utilize Noxon Mills in an effort to merchandize coordinated resilient-carpet
packages as a move toward integrated rooms and "concept" selling.15
Armstrong Cork's purchase of Ε & Β Mills and Thomasville Furniture has
been accompanied by its exit from industries such as containers in which
13
"Carpet Designed for Miniature Golf Lengths Has In Five Years Penetrated
Homes, Offices," Wall Street Journal, July 31, 1968, p. 8.
" "Roll Out the Carpets," Forbes, March 15, 1964, p. 42.
14
Annual Report, 1968, Johns-Manville Corporation.
15
"Amtico To Promote Dual Flooring Concept," Home Furnishings Daily, August
29, 1969, p. 1.
it was a marginal producer. Armstrong now plans to utilize complementary

lines of resilient flooring, carpeting, ceiling systems, wall paneling, and
furniture to offer completely integrated "interiors" or home furnishings
packages. 1 "
T h e concept is not confined to the resilient acquisitions, however.
Coronet Industries makes reference to "total decorating packages" as
among its reasons for acquiring furniture firms and states a desire to add
drapery and wallpaper products to complete its system. 17 Burlington Indus-
tries, with a product mix which includes draperies, furniture, carpets for
floors and walls, and fabrics is in a position to fashion an "interior surfaces"
system. Observers note that U. S. Plywood-Champion Papers, in its recent
action to acquire Trend Industries, is continuing its "move into the home-
furnishings field that was initiated with the 1968 acquisition of Drexel
Enterprises," a large furniture producer. 1 8
IMPLICATIONS FOR FUTURE MERGER ACTIVITY
Such ideas represent some of the future plans which managements en-
vision for their recent acquisitions. Broadly defined, they encompass sys-
tems merchandising with its relationships to the expected future revolution
in retailing and reorganization of product lines to service the potentially
explosive housing market and commercial building programs. In its most
sophisticated form, the functional systems approach presupposes at least
two conditions. T h e first is consumer need for and acceptance of "pack-
aged" selling. T h e second is the rise of " H o m e Centers" or some similar
distribution outlet where complete home furnishings (interior and exterior)
packages will be sold. At the present time, neither is a commercial reality.
Yet, the concept is an evolving one which is found increasingly in nearly
every industry concerned with the home.
Regardless of the manner in which the products are packaged, the hous-
ing market today is appealing to a broader spectrum of United States indus-
try, and home furnishings are one aspect of this market. For this reason,
those companies which include this market in their strategic planning, are
logical future candidates for eventual association with the carpet industry.
A number of these companies come to mind immediately. Some observers
" AnnuaI Report, 1968, Armstrong Cork Company.

"America's Textile Reporter, Vol. LXXXII (May 1, 1969), p. 44.
" "U.S. Plywood Plans to Acquire Trend Industries," Wall Street Journal, September
26, 1969, p. 2.
have already singled out General Aniline and Film because of its Floor
Products Division. 1 ·' Others have pointed to the paper companies, of which
the U. S. Plywood-Trend Industries merger is a recent example.- 0 Related
potential candidates could be Georgia-Pacific which owns Williams Furni-
ture and Boise Cascade, an acquisitions-oriented firm with two-thirds of its
business in housing and associated fields.-1 In addition, it is a known fact
that some paper firms have been researching new methods for producing
carpets out of paper. Any of the building products firms are logical can-
didates and the growth prospects of the carpet industry make its mem-
bers good targets for the broad-based conglomerates—as evidenced by
the activities of Ling-Temco-Vought and Dart Industries, Inc.
Although none of the large chemical firms which supply m a n - m a d e fibers
to the industry have as yet attempted to produce the finished product,
they may eventually make their entry if new processes for carpet produc-
tion can be invented in their laboratories. T h e chemical process industry
is in general, however, currently beginning to view the construction in-
dustry as a new frontier. Impressed with the forecasted demand for hous-
ing units and inspired by the potential of such programs as "Operation
Breakthrough," a growing number of chemical firms are seeking new ways
to meet the challenges and reap the rewards. 2 - Such firms as Olin C o r p o r a -
tion, seeking captive outlets for their products, have announced plans to
enter the home building industry and some oil producers, such as McCul-
loch Oil Corporation and Occidental Petroleum, are committed to the
building of entire cities.
EFFECT OF MERGER ACTIVITY ON THE INDUSTRY

T o date, the mergers which have occurred have not in any sense revolu-
tionized the industry. This is to be expected f r o m the recent character of
much of this activity and the fact that several of the concepts discussed
are of a long range nature. In reference to merchandising systems, a re-
cent trade publication editorial predicted that:
Maybe in the distant future we will have a number of vertical operations which
bring together entire packages of home furnishings with either privately owned
or franchised showrooms being the link to the consumer . . . TTiere have been
19
"Editors Note," Modern Floor Coverings, Vol. LXXXII (January 1969), p. 8.
" " A n Economic Forecaster," Textile World, Vol. CXVIII (April 1968), p. 312.
"Bob Hansberger Shows How to Grow Without Becoming a Conglomerate,"
Fortune, Vol. LXXX (October 1969), p. 135.
- "CPI Eyes Housing Boom," Chemical Engineering, September 22, 1969, p. 72.
some half-hearted attempts to merchandise packages of floor coverings and furni-

ture by manufacturers, but problems of distribution seem to crop up. . . . the
total room package still will be the responsibility of the retailer for a long time
to come.23
The primary result has been the satisfaction of the increased financial
needs of the carpet manufacturer and the establishment of a broader base
for future growth. In most instances, the management and business prac-
tices of the acquired firms have not been substantially altered. Rather the
trend has been, as in the case of Armstrong Cork and Johns-Manville, to
market separate lines of carpeting through their own distribution systems.
Both Ε & Β Mills and Crown-Tuft have maintained their original distribu-
tion networks. The interactive effects of such mergers, the dissemination
of more sophisticated management techniques from parent to subsidiary,
have undoubtedly occurred and are still taking place. Yet, such matters
take time and are not always dramatically visible. In essence, the potential
for change now exists, and in all probability will materialize when the
time is ripe.
FURTHER CONSIDERATIONS
No mention has been made of several other potential changes which
the aforementioned merger activity may bring forth. Among these are
such critical items as the amount of research and development activity
that some of these larger firms may engage in, the attempts that may
be made to establish powerful consumer awareness of manufacturers'
brands, and innovative and more immediate efforts to reach forward and
overcome the multitude of problems which exist at the retail level. A num-
ber of new approaches are being tried at the present time, perhaps the most
visible of which is the program at Giffen Industries. These factors are
considered in the analysis of the various functional areas of the industry
which follows.
23
Stanley Slom, "Conglomeration is Money," Home Furnishings Daily, July 19,
1968, p. 2.
CHAPTER IV.
The Role of Research and Development

The modern carpet industry is the product of approximately two de-
cades of extensive technological change. Previous brief references to the
myriad of new materials, processes, and products embodied in this period
have alluded to the extensive research and development effort which af-
fected this revolution. Based on such past experience, it might appear
that the functional area of industrial R & D would be the major determinant
of the industry's future transformation. Those persons interviewed in the
course of this study, however, have for the most part indicated that the
really dramatic changes in the future will occur in other areas. In inter-
preting their remarks, one must be careful not to conclude that the rate
of invention and innovation is somehow diminishing. Rather, these in-
dustry personnel point out that such revolutionary events as the switch
to the tufting process and the move into man-made fibers developed at a
time when conventional technology was not capable of solving pressing
and potentially fatal problems in the marketplace. The broad technical
base developed since that period has equipped the industry with a capa-
bility which it has not yet fully exploited. In essence, an extension of
presently existing technology appears capable of solving a high percentage
of the major technical problems as currently defined. There is a strong
emphasis, therefore, on assimilating, exploiting, and extending the tech-
nology at hand rather than searching for exotic raw materials or radically
new production techniques.
Although the foregoing was the attitude of the majority of those in-
terviewed on the subject, there was a small percentage who disagreed.
This group claimed that, despite past advances in technology, the basic
processing and finished product had not really changed much at all. The
manufacturing process remains one of fiber conversion by means of con-
ventional textile methodology and the end product must be distributed
as roll goods and installed by experts. Based on present technology, it
is difficult to visualize the product being poured, molded, or sprayed in
place.
In addition, these people are convinced that the rising costs and declin-
ing availability of skilled labor, the pressing need for low cost prefabricated
31
housing, and the emerging opportunities for carpeting outdoor surfaces

are among a host of market forces which might presage a demand for
such capability in the future. They conclude that such current innovations
as flocking and self-installable carpet tiles are only the beginning and that
dramatic changes will be forthcoming from the research efforts of the in-
dustry's innovators.
In order to illuminate the various aspects of this topic, the present
chapter characterizes the research and development efforts of the fiber
supplier and the carpet manufacturer. It attempts to estimate the amount
of activity currently existing, its orientation, and implications for the in-
dustry's future direction. An investigation of the efforts of the equipment
manufacturers has been reserved for a later section.
THE FIBER SUPPLIERS

T h e term "fiber suppliers" designates the large chemical firms which
produce man-made fibers for use in carpet manufacture. A list of the
principal fiber manufacturers appears in Table 11. In the initial period
of man-made fiber usage in carpets in the late fifties and early sixties,
du Pont and Monsanto clearly dominated the market. Since that time,
however, numerous other chemical firms have entered the industry, as
Table 11 clearly indicates, and the previous rigid oligopoly has been ex-
tensively transformed. Nevertheless, despite growing competition, the
major innovators still control the largest market share in their respective
areas of primary effort. One 1968 estimate of the carpet nylon market,
for example, placed du Pont's share at 45.7 percent, based on size of
fiber pound output. 1 Of all the manufacturers, Monsanto is the largest
single supplier to the industry on the basis of total pounds of fiber shipped. 2
Historical Perspective
Although nylon staple was utilized in carpet manufacture as early as
1946, the first major impact of man-made fibers on the carpet industry
was probably made by du Pont's "Type 5 0 1 " continuous filament nylon
yarn. 3 Introduced in 1958, its unique advantages, which have been pre-
viously referred to, set the pace for future nylon products. Since that time,
"'Projections—1975," Home Furnishings Daily, December 30, 1968, p. 36.

2
"Fibers Marketing," Modern Textiles Magazine, Vol. L (October 1969), p. 68.
3
"A Guide to Fibers by du Pont," (Wilmington: Ε. I. du Pont de Nemours, not
dated). (Mimeographed.)
The Role of Research and Development 33
TABLE 11. Principal Manufacturers of Man-Made Carpet Fibers
Manufacturer Fiber Type

Allied Chemical Corporation AC-001 filament and staple
Nylon filament and staple
American Cyanamid Company Acrylic staple
American Enka Corporation Nylon filament
Polyester filament and staple
Rayon filament and staple
American Viscose Division, Polyester filament and staple
F M C Corp. Rayon filament and staple
Beaunit Corporation Nylon filament
Polyester filament and staple
Celanese Corporation Nylon filament
Polyester staple
Polypropylene filament
Courtaulds North America Corp. Rayon filament and staple
Dow Badische Company Acrylic staple
Nylon filament
Polyester staple
Ε. I. du Pont de Nemours & Company Acrylic staple
Nylon filament and staple
Polyester staple
Eastman Chemical Products, Inc. Modacrylic staple
Polyester staple
Enjay Fibers and Laminates Company Polypropylene filament and staple
Hercules Incorporated Polypropylene filament and staple
Hystron Fibers Polyester staple
Monsanto Company Acrylic staple
Nylon filament
Polyester staple
Phillips Fibers Corporation Polyester filament and staple
Polypropylene filament and staple
Union Carbide Corporation Modacrylic staple
Uniroyal Polypropylene filament
Source: Various trade journals and newspapers among which were 1969 Carpet
industry Review, Modern Floor Coverings 1969 Directory, Modern
Textiles Magazine, and Home Furnishings Daily.
nylon has come to be recognized as the strongest carpet fiber, noted for
its exceptional abrasion resistance, good resilience, and excellent texture
retention. Nylon did, however, tend to soil more easily than other fibers.
Further research effort directed at this problem resulted in the introduc-
tion of "Antron" brand nylon fiber by du Pont at the January 1965
Market. This new fiber, the first of the so-called "second generation"
nylons for use in carpets, offered improved soil-hiding characteristics via
polymer modifications to reduce internal light reflection. The trend to
soil-hiding nylon fibers was followed by Allied Chemical Corporation and
Monsanto in 1968 with the development of the "Anso" and "Cadon"
brands, respectively. More recently, du Pont has announced "Antron II"
which, based on new polymer technology, has increased soil-hiding optics
and easier dyeing and finishing characteristics than conventional "Antron." 4
Chemstrand Corporation, a joint venture between American Viscose
and Monsanto (Monsanto later bought out the American Viscose interest
and merged it into the parent corporation) introduced "Acrilan" acrylic
fiber in 1952. The initial product proved to be too brittle and also en-
countered dyeing problems. It was withdrawn from the market and re-
introduced in 1955, with the carpet industry as its major initial target."'
Also in the early fifties, Union Carbide and Eastman introduced modacrylic
fibers, noted for their exceptional flame resistance. In 1959, du Pont dis-
closed that a bicomponent acrylic fiber had been developed. This was
the first carpet staple to contain bicomponent fibers and, by 1963, sample
quantities of "Orion 33" brand were being utilized in carpet mills." A
major recent development has been the introduction of solution dyed
acrylics for use in indoor-outdoor carpets.
Since their initial introduction, the acrylics have been noted as being
the man-made fiber most like wool in texture and appearance. In general,
they are noted for their dyeability, excellent resilience, and soil resistance.
They are slightly more durable than wool but are not considered as durable
as nylon.
Hercules Powder Company introduced polypropylene fiber to the car-
pet trade in 1961. 7 The initial product was a bulked continuous filament
4
"Second Generation Antron Developed," Modern Textiles Magazine, Vol. L (May
1969), p. 52.
'"Turnaround Year for Monsanto," Fortune, Vol. LXX (September 1964), p. 246.
" A bicomponent fiber consists of two different polymer fibers of the same generic
type placed side by side to achieve controlled crimp development during carpet
finishing.
7
"Hercules' Olefin Fiber," Modern Textiles Magazine, Vol. XXXXVI (September
1965), p. 117.
The Role of Research and Development 35
yarn in solution dyed form. The fiber's main advantages were its ex-
ceptional resistance to staining and very high strength and abrasion re-
sistance. As a result, it became the primary fiber in the indoor-outdoor
boom which developed in the mid-sixties. Its good chemical resistance
properties, however, were also responsible for dyeing difficulties. Although
staple and filament products which could be piece-dyed were introduced
in 1965, polypropylene's dyeing problems remain widely recognized. An-
other problem area is the fiber's low resistance to crushing, a primary
reason for its use mainly in carpets with low pile heights. Continuing ex-
perimentation with heavier denier fibers has, however, helped partially
to alleviate some of the problems. More recently, polypropylene has been
increasingly utilized in man-made carpet backings. This will doubtless be
one of its major markets in the future.
The first significant introductions of polyester carpets were made in
January of 1966. At that time, Beaunit, Celanese, and Eastman Chemical
were the primary suppliers. Since that time, however, the list of manu-
facturers has grown to eleven members with Eastman's "Kodel" brand
recognized as the biggest seller. Polyester has become the new wonder
fiber of the trade and its growth rate has been exceptional. The deter-
minants of its market demand are discussed in a later section. First in-
troduced in staple form, a bulked continuous filament yarn from F M C
Corporation came on the market in early 1969.H Polyester fibers are
easily piece dyed and also susceptible to cationic dyeing methods. They
accept the bright, vivid colors which are currently in vogue and carpets
produced from them have a natural, rather than synthetic, appearance.
Durability is excellent and texture retention, resilience, and abrasion resist-
ance are all very good. In general, however, polyester carpets display
poorer recovery from crushing than the acrylics or nylons. The new con-
tinuous filament yarns supposedly help to alleviate this disadvantage.
In 1968, the Allied Chemical Corporation introduced a bi-constituent
fiber branded "Source," the first completely new man-made carpet fiber
since polypropylene's introduction seven years earlier. Combining the
chemistry of polyamide and polyester in one filament, the new fiber was
designed to offer the strength of nylon and the esthetics of polyester. Its
primary distinguishing characteristic was the unique light refracting quali-
ties which it possessed, thereby imparting a silk-like luster to the finished
carpet. The fiber is currently high priced and merchandised only for
luxury applications. Its existence is significant, however, because it was
* "Polyester Filament Broadloom Launched at Home Furnishings Show," America's

Textile Reporter, Vol. LXXXIII, (January 16, 1969), p. 16.
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Chemnitzer, Ivan,
Lion’s Council of State, The, 632
Philosopher, The (from The Fables), 631
Chesterfield, Lord, 428
Letters to His Son (extracts), 429
Chesterton, Gilbert K.,
Ballade of an Anti-Puritan, A, 558
Ballade of Suicide, A, 557
Child’s Verses (extracts), Robert Louis Stevenson, 534
Chimmie Fadden (extract), Edward Waterman Townsend, 716
Chimpanzee, The, Oliver Herford, 745
Chinese humor, 156–161, 164, 214
Chinese Proverbs of Confucius, 160
Chinese story, 214
Chotzner, Professor, on Hebrew satire, 30
Churning of the Ocean of Time (extract), Unknown, 122
Chwang Tze,
Pleasure of Fishes, The (from Autumn Floods), 157
Claudius, Matthias,
The Hen and the Egg, 592
Clemens, Samuel Langhorne (Mark Twain), 8
Jumping Frog of Calaveras County, The (extract), 681
Clever Grethel (from Grimm’s Fairy Tales), 607
Cock and the Bull, The, Charles Stuart Calverly, 507
Cock and the Fox, The (from The Nun’s Priest’s Tale), Chaucer,
254
Cock and the Fox, The, Jean de la Fontaine, 403
Cocktail, The (from The Sultan of Sulu), George Ade, 722
Code of Love, The, 240
Cogia, Nasr Eddin Effendi, 199
Pleasantries of, The (extracts), 213
Cold Mutton, Pudding, Pancakes (from Mrs. Caudle’s Curtain
Lectures), Douglas Jerrold, 476
Coleridge, on humor, 3, 249
Collections, 162 ff., 263, 311
Colman, George, the Younger, 438
Colubriad, The, William Cowper, 436
Comedy, 46, 48
Comic, the, 9, 48
Comic literature, 87
Compulsory Marriage at Sword’s Point A, (from Biography),
Benvenuto Cellini, 356
Confucius,
Analects, The (extracts), 156
Proverbs, 160
Constant Lover, The, Sir John Suckling, 369
Convenient Partnership, Unknown, 78
Corbet, Bishop, 301
Epigram on Beaumont’s Early Death, 305
Farewell to the Fairies, 303
Like to the Thundering Tone, 302
Nonsense, 302
Cordus, Euricius,
Doctor’s Appearance, The, 192
To Philomusus, 192
Cosmetic Disguise (from Satires), Juvenal, 110
Couch, Arthur Thomas Quiller-,
De Tea Fabula, 546
Council Held by the Rats, The, Jean de la Fontaine, 402
Country Parson, The, Elizabeth Graeme Ferguson, 650
Country Squire, The, Thomas Yriarte, 628
Court Fool and King’s Jester, 87, 262
Court of Love, The, 240
Cowper, William,
Colubriad, The, 436
Faithful Picture of Ordinary Society, A, 435
Cozzens, Frederick Swartout, 664
Crane, Stephen,
Extracts, 734
Crane and the Cray-Fish, The, Pilpay, 167
Crates,
Cures for Love, 76
Cratinus Extracts, 65
Creation of Woman, The (from The Churning of the Ocean of
Time), Unknown, 122
Crede Experto, Martial, 109
Credo (German Student Song), 614
Criticism of a Statue of Hercules (from Biography), Benvenuto
Cellini, 358
Crow and the Fox, The, Jean de la Fontaine, 404
Cures for Love, Crates, 76
Curtis, George William, 678
Cynical paragraphs, Bhartrihari, 195
Dangerous Love, Balthasar Bonifacius, 194

Dante, 231
Darkness, Lucian, 76
Daudet, Alphonse,
William Tell (from Tartarin in the Alps), 583
Davies, Sir John,
Acrostics, 309
Married State, The, 310
Davison, Francis, 311
De Tea Fabula, Arthur Thomas Quiller-Couch, 546
Dead Alive, The, Pierre Jean de Beranger, 565
Deane, Anthony C.,
Here Is the Tale, 543
Decameron, The, 164; (extract), 343, 345, Giovanni Boccaccio
Decorated Bow, The (from Fables), Lessing, 588
Defoe, Daniel,
Friday’s Conflict with the Bear (from Robinson Crusoe), 383
Dekker, Thomas,
Horace Concocting an Ode, 300
Obedient Husbands (from The Bachelor’s Banquet), 298
De Quincey, Thomas,
Murder as One of the Fine Arts, 458
Derby, George Horatio (John Phoenix),
Tushmaker’s Tooth-Puller, 678
Derision theory of humor, 5, 6, 9, 12
Desangiers, Marc Antoine,
Eternal Yawner, The, 562
Deschampes, Eustache,
Advice to a Friend on Marriage, 315
Description of Holland, Samuel Butler, 377
Desolation, Thomas L. Masson, 733
Dialogue between Shallow and Silence (from Henry IV, Part II),
Shakespeare, 279
Diary of Samuel Pepys (extracts), 378
Diatribe Against Water, Francesca Redi, 410
Dickens, Charles, 14
Mrs. Gamp’s Apartment (from Martin Chuzzlewit), 491
Dinkey-Bird, The, Eugene Field, 710
Dionysiac festivals, 46, 55
Diphilus, Epigrams, 84
Disappointment Theory of humor, 4 ff.
Discomfort Better Than Drowning (from The Rose Garden
[Gulistan]), Sadi, 142
Dissertation on Dumplings, A (from Bull and Mouth), John
Arbuthnot, 427
Dissertation on Puns, Theodore Hook, 453
Diving for an Egg, Do-Pyazah, 156
Dobson, Henry Austin, (Austin Dobson),
On a Fan, 524
Rondeau, The, 525
Doctor, The (extract), Robert Southey, 450
Doctor’s Appearance, The, Euricius Cordus, 192
Dodgson, Charles Lutwidge. See Carroll, Lewis
Don Juan (extracts), Lord Byron, 460
Don Quixote (extracts), Miguel de Cervantes, 363
Donkey’s Voice, The (from Judas, the Arch-Rogue), Abraham á
Sancta Clara, 412
Donne, John,
Will, The, 296
See Dunne, Finley Peter
Dooley, Mr., 720
Do-Pyazah, Definitions, 154
Diving for an Egg, 156
Dostoevsky, Fedor, 634
Karlchen, the Crocodile (extract), 635
Downing, Major Jack. See Smith, Seba
Drake, Joseph Rodman, and Halleck, Fitz-Greene,
Ode to Fortune, 657
Dream Wife, The, Kajetan Wengierski, 639
Drummond, William H., M. D.,
Wreck of the “Julie Plante,” The, 726
Drunkard’s Fancy, The, Wilhelm Müller, 606
Dryden, John,
Milton Compared with Homer and Virgil, 382
On Shadwell, 380
On the Duke of Buckingham, 381
Dumas, Alexander, the Elder,
Touching the Olfactory Organ, 574
Dunne, Finley Peter (Mr. Dooley),
On Expert Testimony, 720
Eastman, Max,
definition of the Disappointment Theory, 7
on sense of humor, 13
Education of Young Ladies, The, Pierre Jean de Béranger, 563
Eggs, The, Thomas Yriarte, 627
Egyptian humor, 27–29
Elegy, Arthur Guiterman, 743
Elegy on the Death of a Mad Dog, An, Oliver Goldsmith, 432
Elegy on the Glory of Her Sex, Mrs. Mary Blaize, An, Oliver
Goldsmith, 433
Eliphalet Chapin’s Wedding, Will Carleton, 723
Emerson, Ralph Waldo,
Mountain and the Squirrel, The, 660
Enforced Greatness, San Shroe Bu, 219
English humor, 253–311, 365–389, 415–559
Envy, Lucilius, 77
Epigram on Mrs. Tofts, Alexander Pope, 421
Epigrams,
English, 291, 295, 296, 377, 382, 421, 478, 479
French, 335–337
German, 588–589
Greek, 67–70, 76–79, 83–85, 189, 190
Haytian, 641, 642
Hindu, 195, 196
Mediæval, 189–207
Persian, 142, 196–199
Roman, 107–110, 333
Turkish, 199–204
Epitaph, An, Ammianus, 77
Epitaph, An, Matthew Prior, 387
Epitaph for an Old University Carrier, Milton, 373
Erasmus, Desiderius, 178
Praise of Folly, The (extracts), 337
Eternal Yawner, The, Marc Antoine Desangier, 562
Eubulus, Epigrams, 69
Eulenspiegel, Tyll (Owleglas or Howleglas),
Golden Horsehoes, The (from Eulenspiegel’s Pranks), 339
Paying with the Sound of a Penny (from Eulenspiegel’s
Pranks), 340
Evening Reception, An (from Bohemian Life Sketches), Henri
Murger, 579
Every Man in His Humor (extract), Ben Jonson, 293
Eve’s Daughter, Edward Rowland Sill, 698
Fable of the Caddy Who Hurt His Head While Thinking, The,
George Ade, 723
Fables,
origin of, 27–28
use of term, 162, 235
Fables of Pilpay or Bidpai (selections), 164
Fabliaux, 164, 235, 236
Faithful Picture of Ordinary Society, A, William Cowper, 435
Faithless Nelly Gray, Thomas Hood, 462
False Charms, Lucilius, 78
Farewell to Chloris, Paul Scarron, 398
Farewell to the Fairies, Bishop Corbet, 303
Fauvel, 228
Ferguson, Elizabeth Graeme,
Country Parson, The, 650
Field, Eugene,
Dinkey-Bird, The, 710
Good James and Naughty Reginald (from The Tribune
Primer), 713
Little Peach, The, 712
Fields, James Thomas,
Alarmed Skipper, The, 668
Filippo, Rustico di, 349
Making of Master Messerin, The, 350
Fine Lady, The, Simonides, 65
Firdausi,
On Sultan Mahmoud, 142
Fixed Smile, A, Catullus, 98
Fletcher, John,
Laughing Song, 300
Fontaine, Jean de la,
Cock and the Fox, The, 403
Council Held by the Rats, The, 402
Crow and the Fox, The, 404
Foss, Sam Walter, 717
Philosopher, A, 718
Francis, J. G., 760
Franklin, Benjamin,
“He Paid Too Much for His Whistle” (from Letter to a Friend),
643
Paper, 645
French humor, 211–213, 235–243, 312–337, 390–409, 560–585
Friday’s Conflict With the Bear (from Robinson Crusoe), Daniel
Defoe, 383
Friend of Humanity and the Knife-Grinder, The, George
Canning, 439
Frog, The, Hilaire Belloc, 557
Frogs, The (extracts), Aristophanes, 55
Furniture of a Woman’s Mind, The, Jonathan Swift, 416
Gammer Gurton’s Needle (extract), John Still, 308

Garden Hose, The, Edgar Wilson Nye, 714
Gargantua and Pantagruel, 323
(extracts), François Rabelais, 329
Gargoyles, 48
Gaulard, Sieur,
Bizarrures, 211
Contes Facetieux, Les (extract), 74
Gautier, Théophile,
Lap Dog, The (Fanfreluche), 577
Gellert, Christian F.,
Patient Cured, The, 586
Gentle Alice Brown, William Schwenck Gilbert, 529
Gentleman Cit, The (extract), Molière, 396
Gerard, Marc-Antoine,
Address to Bacchus, An, 392
German humor, 337–344, 412–415, 586–615
German Student Songs,
Credo, 614
Pope and Sultan, 613
Gesta Romanorum,
authorship and sources, 163, 243
Of Sloth, 243
Of the Deceits of the Devil, 246
Of the Good, Who Alone Will Enter the Kingdom of Heaven,
244
Of the Incarnation of Our Lord, 245
Of Vigilance in Our Calling, 247
Ghislanzoni, Antonio,
On Musical Instruments, 619
Gilbert, William Schwenk,
Gentle Alice Brown, 529
“Lady from the provinces, The,” 210
Mighty Must, The, 528
To the Terrestrial Globe, 529
Giles and Joan, Ben Jonson, 296
Gleemen, 232
Goethe, Johann Wolfgang,
Reynard the Fox (extract), 596
Gold, Oliver Herford, 747
Golden Ass, The (extracts), Apuleius, 112
Golden Horseshoes, The (from Eulenspiegel’s Pranks), Tyll
Eulenspiegel, 339
Goldoni, Carlo, 616
Goldsmith, Oliver, 431
Elegy on the Death of a Mad Dog, An, 432
Elegy on the Glory of Her Sex, Mrs. Mary Blaize, An, 433
Parson Gray, 434
Good Flea and the Wicked King, The (from Tales of a
Grandfather), Victor Marie Hugo, 580
Good James and Naughty Reginald (from The Tribune Primer),
Eugene Field, 713
Good Wife and the Bad Husband, The, 37
Goose, The, Alfred Tennyson, 500
Gothamites, 208, 214, 216, 341
Gozzi, Carlo, 616
Grammar and Medicine, Agathias, 76
Great Contention, The, Nicarchus, 190
Greedy and Ambitious Cat, The, Pilpay, 164
Greek Anthology, 75
Epigrams, 76 ff.
Greek Comedy, 46, 48, 55, 66
Greek humor, 43–85, 178–181, 189–190
Greene, Albert Gorton,
Old Grimes, 658
Griboyedoff, Alexander, 631
Grimm, Jakob and Wilhelm,
Clever Grethel (from Fairy Tales), 607
Guiterman, Arthur,
Elegy, 743
Mavrone, 742
Guthrie, T. A. (F. Anstey),
Select Passages from a Coming Poet, 554
Hale, Edward Everett, 678

Halleck, Fitz-Greene, and Drake, Joseph Rodman,
Ode to Fortune, 657
Halpine, Charles Graham, 681
Hamlet (extract), Shakespeare, 286
Hans Breitmann Ballads (selection), Charles Godfrey Leland,
680
Harington, Sir John,
Of a Certain Man, 293
Of a Precise Tailor, 292
Harris, Joel Chandler,
Sad End of Brer Wolf, The (from Uncle Remus, His Songs
and His Sayings), 708
Harte, Francis Bret,
Society upon the Stanislaus, The, 686
To the Pliocene Skull, 688
Hatefulness of Old Husbands (from The Rose Garden
[Gulistan]), Sadi, 144
Hay, John,
Little Breeches (from Pike County Ballads), 690
Haytian Epigrams, 641
Hazlitt, William, 18, 277
on the laughable, 7
on distinction between wit and humor, 15, 16, 17
on Falstaff, 278
“He Paid Too Much for His Whistle” (from Letter to a Friend),
Benjamin Franklin, 643
He Secures Sancho Panza as His Squire (from Don Quixote),
Miguel de Cervantes, 360
Hebrew humor, 30–33, 124–126
Height of the Ridiculous, The, Oliver Wendell Holmes, 665
Heine, Heinrich, 610
Extracts, 612
Town of Göttingen, The, 611
Hen, A (extract), Henry Wheeler Shaw, 673
Hen, The, Oliver Herford, 745
Hen and the Egg, The, Matthias Claudius, 592
Henley, William Ernest,
Villanelle, 533
Henry IV, Part I (extract), Shakespeare, 281
Henry IV, Part II (extract), Shakespeare, 279
Heptameron, The, 164, 321
Herbert, George, 365
Here Is the Tale, Anthony C. Deane, 543
Herford, Oliver,
Chimpanzee, The, 745
Gold, 747
Hen, The, 745
Mark Twain: A Pipe Dream, 746
Phyllis Lee, 744
Prodigal Egg, The, 747
Some Geese, 744
Song—After Herrick, 747
Herrick, Robert,
Kiss, The—A Dialogue, 367
Ternary of Littles, upon a Pipkin of Jelly Sent to a Lady, A, 368
Hierocles,
Jests, 72, 175
Higher Pantheism in a Nutshell, The, Charles Algernon
Swinburne, 522
Hindu humor, 36–39, 121–124, 164–175, 195–196, 214–215,
219–225
Hobbes, Thomas, 365
Laughter (from Treatise on Human Nature), 11, 12, 366
Hoffman, Heinrich, 613
Holley, Marietta,
My Opinions and Betsy Bobbet’s (extract), 702
Holmes, Oliver Wendell, 18
Æstivation, 666
Height of the Ridiculous, The, 665
Holy Willie’s Prayer, Robert Burns, 440
Homer,
identity, 43, 48
Battle of the Frogs and Mice, The, 51, 53
Beating of Thersites, The (from The Iliad), 49
Homer’s Riddle, 35
Hood, Thomas,
Faithless Nelly Gray, 462
No!, 465
Hook, Theodore,
Dissertation on Puns, 453
Hopkinson, Francis,
Battle of the Kegs, The, 647
Horace,
Obtrusive Company on the Sacred Way (from Satires), 98
Horace Concocting an Ode, Thomas Dekker, 300
Horse Tied to a Steeple, A (from Adventures of Baron
Münchausen), Rudolph Erich Raspe, 589
How a Girl Was Too Reckless of Grammar, Guy Wetmore
Carryl, 738
How Jacke by Sophistry Would Make of Two Eggs Three (from
The Jests of Scogin), 265
How Madde Coomes, When His Wife Was Drowned, Sought
Her against the Streame (from Mother Bunches
Merriments), 267
How Maister Hobson Said He Was Not at Home (from The
Pleasant Conceits of Old Hobson, Richard Johnson), 267
How Scogin Sold Powder to Kill Fleas (from The Jests of
Scogin), 265
How Skelton Came Late Home to Oxford from Abington (from
Certayne Merye Tales), John Skelton, 264
How the Welshman Dyd Desyre Skelton to Ayde Him in Hys
Sute to the Kynge for a Patent to Sell Drynke, John Skelton,
263
Hudibras (extracts), Samuel Butler, 375
Hugo, Victor Marie,
The Good Flea and the Wicked King (from Tales of a
Grandfather), 580
Human Nature, Treatise on (extracts), Thomas Hobbes, 11, 12,
366
Humor,
use of term, 3
theories and definitions, 4 ff., 23
Hazlitt on, 7, 15 ff.
Max Eastman on, 7, 13
Dr. Isaac Barrows on, 9–11
Thomas Hobbes on, 11
George Meredith on, 12
sense of humor, 13–15
Brander Matthews on, 13
distinction between wit and, 15–17
playfulness of animals, 18 ff.
chronological periods, 20, 43
origin of, 23, 45, 46
educational use, 249
influx into literature, 277
Humorist on His Calling, A (from A Window in Thrums), James
Matthew Barrie, 535
Hunting with a King (from Sakuntala), Kalidasa, 121
Husband and the Parrot, The (from The Arabian Nights’
Entertainment), 131
Husband’s Petition, The, William Edmonstoune Aytoun, 494
Hymn of the Frogs, The (from the Rig Vedas), 34
“I am a saint of good repute,” Monk of Montaudon, 238

Idiot’s Delight, The, Carolyn Wells, 749
Idler, The (extract), Samuel Johnson, 430
If I Should Die To-Night, Ben King, 728
Ignorant Man Who Set Up for a Schoolmaster, The (from The
Arabian Nights’ Entertainment), 129
Il Cortegiano (extracts), Castiglione, 183
Iliad (extract), Homer, 49
Iliad in a Nutshell, The, 51
Ingenious Cook, An (from Trimalchio’s Banquet), Petronius, 102
Ingoldsby Legends, Richard Harris Barham, 455
Inheritance of a Library, The (from Novellino), Massuchio di
Salerno, 350
I Remember, Phœbe Cary, 676
Innocence (from Contes Drolatiques), Honoré de Balzac, 568
Irish Bulls, prototypes of, 211
Invalid and His Deaf Visitor, The (from Stories in Rime
[Masnavi]), Jalal uddin Rumi, 152
Invisible Bridge, The, Frank Gelett Burgess, 748
Iphis, Jean de la Bruyère, 406
Irishman, The, William Maginn, 471
Irving, Washington,
Certain Young Lady, A, 654
Italian humor, 182–184, 218, 344–359, 409–411, 616–625
Jabberwocky (from Through the Looking-Glass), Lewis Carroll,

515
Jack and Jill (a symposium), Charles Battell Loomis, 735
Jacob, Phœbe Cary, 677
Jalal uddin Rumi,
Invalid and His Deaf Visitor, The (from Stories in Rime
[Masnavi]), 152
Old Age—Dialogue, 153
Sick Schoolmaster, The (from Stories in Rime), 149
Jami,
The Baharistan (extracts), 196
Japanese humor, 161
Játakas, or Buddhist stories, 34, 214
Jerrold, Douglas, 475
Cold Mutton, Pudding, Pancakes (from Mrs. Caudle’s Curtain
Lectures), 476
Witticisms, 478
Jestbooks (extracts),
English, 262 ff., 274 ff.
French, 335–337
Jester Condemned to Death, The, Horace Smith, 469
Jests
Greek, 178–181
Mediæval German, 188–189
Old jokes, 72–75
Roman, 181–182
Jests of Hierocles, 72, 175, 176–178

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The Carpet Industry Present Status and

Future Prospects Robert W. Kirk

The Detection of Biomarkers - Past, Present, and the

Covid 19 Through the Lens of Mental Health in India

On the Future Prospects for Humanity Lord Martin Rees

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Machine Learning in Biological Sciences Updates and

Nuclear Power Past present and future 2nd Edition

The Status of Religion and the Public Benefit in

THE CARPET INDUSTRY

In 1967, the Wharton School of Finance and Commerce received a con-

HERBERT R. NORTHRUP, Director

GEORGE M. PARKS, et al., The Economics of Carpeting and Resiliennt

DAVID C. S T E W A R T , Economics of Carpeting and Resilient Flooring: AÄ

II. HISTORICAL OVERVIEW 3

III. CURRENT INDUSTRIAL STRUCTURE AND THE R O L E

Effect of Merger Activity on the Industry 29

The Fiber Suppliers 32

Carpets—One Market Within a Broader Framework 36

Current Research Design 37

The Search for Other Market Areas 38

The Carpet Manufacturers 39

Research Efforts Before World War II 40

The Post-War Period 41

The Importance of Market Orientation 42

Scope and Magnitude of the Research Effort 43

Impact of New Participants 45

V. MANUFACTURING—TECHNOLOGY AND ENVIRONMENT

Growth of Output and Capital Expenditure 48

Printing and Continuous Dyeing 48

Impact of the Diversity of Tufting Equipment 52

Future Importance of the Flocking Process 53

The Growing Need for Product Standards 55

Plant Design and Location Considerations 56

Integrated Information Systems Requirements 58

The Prospect of Emerging Barriers to Entry 59

VI. E L E M E N T S OF D E M A N D AND P R O D U C T M A R K E T SIZE 61

Income and Price Determinants 61

VII. A S P E C T S OF THE CHANGING DISTRIBUTION/SELLING

Current Retail Distribution Pattern 84

The Integrated Merchandising Concept 87

1 U.S. Residential and Commercial Broadloom Carpet and

The present chapter is designed to provide a brief historical review of

TECHNICAL INNOVATION IN THE EARLY YEARS

It was through the inventive genius of Erastus B. Bigelow that power-

THE DEMAND FOR CARPETS AND RUGS 1825-1941

THE EMERGENCE OF OLIGOPOLY

By 1939, five companies (Bigelow-Sanford, Alexander Smith, James

IMPACT OF WORLD WAR II

Ewing and Norton, op. cit., p. 300.

THE SEARCH FOR FREEDOM FROM

THE TUFTING PROCESS

The technological revolution which swept through the industry in the

Annual Report, 1950, James Lees and Sons, Inc.

THE RESURGENCE OF DEMAND

" Carpet and Rug Institute, Inc., note 8, supra, p. 5.

U.S. Bureau of the Census, Location of Manufacturing Plants 1963, MC63(5)-3-2,

TABLE 1. U. S. Residential and Commercial Broadloom

Square Yards Estimated Dollar Value

1950 85.7 $ 536.7

f r o m T a b l e 2. In the period between 1951 and 1960, the average whole-

TABLE 2. Wholesale Value of Domestic Broadloom