Distribution and Production in the Philadelphia Area Len ATT Eh = Ty Wn - tu En FG" ve : Fy Co En So aake \& {28 hawt Ny 8% oy LR METRY Lg TT gee Bl Sw Sek . ~ at “a 2 ws RR so pore Philadelphia Business Progress Association 1442 Widener Building Philadelphia, Pa. A ?, 15 w/in Copyright, 1930, by the Philadelphia Business Progress Association Printed in the United States of America All Rights Reserved Distribution and Production in the Philadelphia Area Industrial With respect to production and Areas distribution in industry the Defined United States divides into many homogeneous areas which take their names, as a general rule, from the principal city contained within their borders but which exceed in geographical limits and in commmercial influence the physical boun- daries of these cities themselves. When we speak of New York in the industrial sense, for instance, we do not limit ourselves to the confines of Man- hattan Island or even to the five boroughs which make up the city proper. We mean the whole territory which holds together as a producing and distributing unit and which extends many miles up the Hudson River and down the Bay and strikes inland even into another state. Similarly when we speak industrially of Phila- delphia we do not mean the city which William Penn laid out but that whole territory lying gen- erally along the Delaware River, embracing parts of three states, whose functioning is unified by common interest and identical facilities. : _—— The This building up of homo- New geneous districts of a common Standard interest based on the industrial andar viewpoint and the gradually developing consciousness that they constitute entities broader in scope than the mere political divisions of city and county which formerly sufficed, is a sign of the times. The new tendency has not yet been established long enough so that the precise boundaries of the various pro- duction and distribution areas of the country are exactly defined. But there are steps being taken in that direction. Official government cognizance is being taken of the new trend and in the census of 1930, when the report is finally made, there will be population and statistical information tabu- ated on the basis of these industrial or metro- solitan areas. The United States Chamber of Commerce is at present working with the Census Bureau to estab- lish the determinants which should influence the definition of such areas. It should be added that in this publication the Philadelphia Business Prog- ress Association makes one of the first, if not the first, contributions to practical work along this line. As far as there is any definite agreement on these determinants, the efforts of its Research De- partment have been directed along lines that con- form to them. The former determinants, like arbitrary circles drawn with this or that radius, have been ignored. It is believed the present study represents the first attempt to define the Metro- politan Area and the various distribution areas of Philadelphia along scientific lines in keeping with the present-day standards of definition. mires) er———. Philadelphia Actual study of conditions that The Atlantic surround distribution in the Coast Cent Philadelphia Area has led to oast Lenter he conclusion that from Phila- delphia you can reach more people with less effort than from any other great distribution center in the country. Let us see why that is so. The Philadelphia Area occupies a strategic posi- tion with regard to distribution to the great markets of the country east of the Mississippi. These may be roughly defined as northern, middle western and southern, stated in the order of their relative im- portance. The distribution advantage of Philadelphia with respect to these great market divisions is that it is a seaboard city, central to all of them. Baltimore may be taken as the industrial city at the gateway to the southern market. New York may be considered similarly with respect to the northern market, embracing also the New England states. Philadelphia, lying midway between these two, is in the strategic position of being able to reach these two great markets with greatest ease. As to The West Pittsburgh and Buffalo might be considered the gateways to the mid-west and the seaboard cities have no material advant- age one over the other in reach. ing these two points, except perhaps New York, Philadelphia and Baltimore, which are for all prac- ical purposes on a parity and have some advant- 1ge over Boston in access to the Pittsburgh gateway. Fi Therefore Philadelphia has the position unique among all of these seaboard cities, of being con- tignous to all of the great markets. It is the great entral area among the great areas. That is its insuperable advantage as a distribution point. The area lying between the Mississippi and the Rockies is not of great importance as a consuming area, considered relatively to the rest of the country. As to the West Coast market area, Philadelphia’s great tidewater port places it in position equivalent to that of Denver, Colo., in respect to freight rates to the west coast. That is to say, the twenty-nine sailings per month from the Port of Philadelphia to west coast points give water freight rates lower than the rail rates from Denver, Colo., to the west coast. Putting it in another way, Philadelphia is nearer io the southern and western markets than New York, and nearer to the northern (including New England) market than Baltimore. The three trunk- line railroads and their connections serving Phila- delphia provide more trains to the west than any sastern seaboard city has except New York, whose trains are equalled in number and surpassed as to ‘ime. It should be recalled that the country’s largest railroad strikes west from Philadelphia. Possessing these distribution facilities, it has the ‘urther inestimable advantage of lacking the con- zestion which prevails in the New York area, the only Atlantic Coast center whose domestic distribu- tion facilities are equal. Production It may have been noted that in In the the title of this booklet the dis- Aven tribution from the Philadelphia Area has been mentioned before the production, which is per- 1aps a departure from the usual order. That was lone because this is primarily a study of distribu- tion. Consideration of distribution, however, is not somplete unless’it be accompanied by consideration of production. Each acts as a complement to the sther. That is, any area which has exceptional dis- ribution facilities should have exceptional produc- tion. Conversely, if an area have small production, it is likely to be lacking in distribution facilities. The production of the Philadelphia Area is as impressive in its field as distribution in its, as will oe seen by reference to the data given later. Study of these data has disclosed several interesting facts. For instance, the territory which can be reached >vernight from Philadelphia by motor truck lines operating scheduled routes, which is called the Jvernight Trucking Area in these studies, embraces 1 population which has a spendable income equal ‘0 the total spendable income of sixteen states, 1amely, Maryland, North Carolina, South Carolina, Virginia, Georgia, Florida, Alabama, Mississippi, Cennessee, Kentucky, West Virginia, Ohio, Indi- ina, Louisiana, Arkansas and Oklahoma. It is an: sther interesting fact that the building permits issued annually within the Overnight Trucking Area ‘almost exactly equal in value the aggregate of those issued in the above states. Method In making its studies of distri- of bution from the Philadelphia Stud center, the Research Depart- y ment of the Philadelphia Busi- ness Progress Association based its inquiries on the various means of transportation and the territory reachable by each within certain ‘ime limits. The first step was determination of the Phila- lelphia Metropolitan Area. Facilities of distribu- ion within a metropolitan district are so well anderstood that there is no necessity of reviewing them here. Supplementary to the Metropolitan Area is the territory which is not a homogeneous city for every- day purposes but which comprises the section in which Philadelphia is more readily accessible by railroad or highway travel than any other metro- politan center. This is the territory which depends on Philadelphia for the bulk of its important buy- ing and is given the name of Market Area. Next in range is the territory which may be reached from Philadelphia by motor truck over scheduled routes between the close of every busi- aess day and the opening of the next. This is identified as the Overnight Trucking Area. Extending beyond this territory are the .zones which are reached by railroad freight, defined on he basis of Second, Third and Fourth Day Freight Areas. Finally comes the Steamship Freight Area, which carries the distribution system of Philadel- phia to all corners of the earth. Mana I'he Philadelphia Metropolitan Area Standards The Philadelphia Metropolitan of Area embraces a territory ap- Definiti proximately thirty-five miles Shntion square, a total of 1,229 square miles, with Philadelphia as the by careful study of the whole question of what oroperly constitutes such an area, Separate investigations ‘were made under the ‘ollowing headings: population density, commuting, shopping, newspaper circulation, suburban tele- phone service, real estate operations and ticket agency sales. Under each of these subjects the results were collated and expressed in a separate map. The enter. As defined in these studies, it is not based on arbitrary distances selected as measurements or on rroupings of convenient geographical divisions, but 0 “Telford darken © ~ a Doylestown “ © chalfont HN wath wales © wylana Newiow TN 20 oF orence FL o + wf togt Chee NIC ~h J Media GC Marlton o Holly © 0 Py ££ oe 0 Medford - fhadds Ford eR Miimington 11% Hor Zhest ~ ibbstown © Paulsboro Berlin 0 A J fo Atco > Swedesboro: . Ra Dit , , _ PEE Chesithurst AN o Williamstown METROPOLITAN AREA or PHILADELPHIA PHILADELPHIA BUSINESS PROGRESS Asso, RESEARCH DEPT. FEB.~1930 rey boundary lines of each of these factors were then superimposed on a large master map and the final metropolitan area line determined substantially as a composite of all these individual factor lines. To facilitate the compilation of statistics the true metropolitan area line was adjusted to conform to the nearest existing township lines. ee rerere—— Summary In this area live 2,934,920 per- of Data sons having an annual spend- for Aden able income totalling $2,550, 000,000. In it there are 7,218 industrial establishments em- oloying 348,300 wage earners, who are paid an- wally $466,250,000, and who produce annually manufactures valued at $2,591,000,000. Retail sales in the area total annually $1,054,992,000. There are 548 separate and distinct communities »f Pennsylvania and New Jersey that lie within the Philadelphia Metropolitan Area. Roughly the area is bounded by the following points which lie within its limits: In Pennsylvania—Marcus Hook, West Chester, Paoli, Valley Forge, Hatfield, Lansdale, Hatboro, Langhorne and Bristol; in New Jersey— Burlington, Mt. Holly, Berlin, Glassboro and Gibbs- own. The productivity and the volume of business done within this area are apparent when statistics for the area are reduced to percentages. By this it is shown that while the district as defined embraces only forty-one one-thousandths of one percent of the total area of the United States, the district em- braces two percent of the entire population of the country, four percent of the country’s industrial establishments, and produces four percent of the total value of all manufactured products made in America. While the city of Philadelphia proper, with its sstimated 1929 population of 2,069,400, comprises nearly ten percent of the metropolitan area, the Metropolitan Area is growing at a rate nearly one and one-half times as fast as the entire United States. The area has increased mearly twenty per- cent since 1920, as compared with a fourteen per- sent increase for the country at large. me mn Movement Philadelphia’s population has, of of Ss in rsaiing grams te . original center, followed the Population railroad and highway routes outward. The boundary lines of the Metropolitan Area include the farthest points of the “built-up” district. In accordance with the practice of the United States Census Bureau, the population line of the Philadelphia Metropolitan Area, as shown on the map on Page 5, was drawn where population density tapered to 150 persons per square mile. Establishment of this line also took into account towns, highway and railroad routes, and other land- marks affecting the density and grouping of popula- tion. An air photograph of the entire area was closely studied in determining the boundary line of the “built-up” area. This photograph clearly shows the tapering off of concentrated building construction. error {Jarre Commuting Commuting was another im- as a portant factor in determining Fact the Philadelphia Metropolitan or Area. The commuting line on the Metropolitan Area map in- dicates perhaps as well as any other factor the relation between the urban and the suburban area. While people commute daily to Philadelphia from such distant points as Atlantic City, Princeton and Reading, and in numbers from Trenton and Wil- mington, the bulk of the commuting comes from points within the “built-up” area line. To establish the Philadelphia Commuting area, forty-five-minute commuting time and twenty-five ent one-way commuting fare were selected as de- termining the effective limits of the great bulk of commuting. Time-tables were consulted to deter- mine number and time of trains at convenient com- muting hours. Estimates were also obtained from the leading transportation companies of traffic in all directions from Philadelphia. These companies included Pennsylvania Railroad, Reading Company, Phila- delphia and Western Railway, Philadelphia and West Chester Traction Company, and the Public Service Co-ordinated Transport. The result of these studies is represented by the commuting area line on the accompanying map. Retail Philadelphia’s department Sales stores form the backbone of its Volume retail shopping facilities. These and other stores in the area enjoy a steady trade from an area bounded by Baltimore, Harrisburg, Allen- town, Princeton and Atlantic City. The metropolitan shopping area is defined as that territory whose population shops in the central city. The area is determined under the standards of the United States Census Bureau by the daily free delivery of department stores in their own trucks. Such stores are chosen as representative of general retail trade because of the large volume of their business and because they deal in all three classes of retail consumption—necessities, luxuries and convenience goods. A line on the accompanying Metropolitan Area map shows the extent of the territory in which two or more Philadelphia department stores make free daily delivery in their own trucks. This metropoli- tan shopping area goes as far as Wilmington, rd 2 A ArruLee *onpar Sroexds \ JT HM Tm pd N © aketurst Yat METROPOLITAN AREA PHILADELPHIA ROE MCTROROLTAN AREA oor POPULATION LIMITS T——— COMMUTING AREA — —— SUSURBAN, EWEPMPER. CIRCULATION mm me METROPOLITAN TELEPHONE, SERUCE sreevseneerss PHESI uses process ASSCCTON Master Map used in final determination of Metropolitan Area. On this map were drawn the boundary lines expressing the extent of influence of the vari- ous determinant factors, such as population density limits, commuting area, etc. The true Metropolitan Area line was developed as a composite of all these. Then, since township divisions are the smallest within which public and other agencies customarily compile statistical information, the true Metropolitan Area line (shown as light solid line on this map) was adjusted to conform to nearest existing township lines, the final Metropolitan Area line (heavy solid line) expressing this adjustment. Five METROPOLITAN AREA OF PHILADELPHIA WEALTH AND INDUSTRY Metropolitan Philadelphia Suburban Total 1,228.67 2,934,920 $2,550,000,000 192,800 40,900 $1,054,992,000 7.218 348,300 $466,250,000 $2 591.000.000 U. S. (Continental) Total | Percent Area (sq. mi.) .....ccvvnne Population .........cc000e. Spendable Income* ........ [Incomes $1,000-$5,000 ...... [ncomes $5,000 and over .... Retail Purchases ........... Industrial Establishments .. Wage Earners ........eee0. WORE ouve somes snvase ’ 7alite of Products .... . «“Spendable Income” includes all business profits, salaries, wages and investment income, receivable in money, thus excluding only home or farm services not paid in money; and inventory gains and surpluses not con- vertible into current income. These figures are based on the National Income Studies of the National Bureau 9f Economic Research. New York. 2,978,774 121,572,000 $85,680,000,000 6,909,400 1,990,700 $41,500,000,000 195,000 8,325,000 $10,950,000,000 $62.750.000.000 0.04 2.40 2,00 2.80 2.10 2.50 270 4.10 4.21 412 METROPOLITAN AREA OF PHILADELPHIA AREA AND POPULATION Population Square Miles Percent of iI. S. 1929 Estimates Total Dengitv* 1920 Census " DengitvE Total Growth Percent Metropolitan: chiladelphia .. Suburban ..... Total ..... Pennsylvania .. United States | Continental) . | 2,973,774.00 | 100.000 * Density means population per square mile. % By Regional Planning Federation of Philadelphia. GROWTH OF METROPOLITAN AREA Particular attention is drawn to the above per cent of growth of the Metropolitan Area. The tremendous growth of this territory is in that section surrounding the City of Philadelphia. The table above indicates that the Metropolitan Area’s growth since 1920 was 1.41 times as rapid as the entire state of Pennsylvania, and 1.87 times ag fast as the entire United States, (Continental). METROPOLITAN AREA OF PHILADELPHIA POPULATION STATISTICS SUMMARY Counties PENNSYLVANIA Philadelphia ....... .. BUCKS ..covvrearrinran Shester «...oossuvcives Delaware ......oovevne Montgomery .... . ... Total, Penna. ...... NEW JERSEY Burlington .......coce. IAC wos suns inure ven Floucester ............ Total, N. J. ....... Grand Total ........ Cities all Rorog. | Area—1926 Twos. (sq. mi Population 1920 Census T1929 Est + 129.71 6 113.69 | 8 103.09 17 156.70 on 267.73 270 G9 2,069,400 32,085 27,925 262,950 185,760 9 KTR 190 1,823,779 26,198 25,192 168,032 145,080 2,188,281 2 23 13 141.57 \ 61,330 50,494 | To 191.96 zis 185,596 6 124.22 + 32,091 28 - 467.75 356,800 268,181 : 79 | 1,228.67 2,934,920 | 2,456,462 Nir br Coatesville, Pottstown, Sellersville, Trenton, Pem- perton, Atlantic City, Ocean City, Wildwood and Cape May, and embraces an area extending approxi- mately seventy miles to the more distant seashore soints in New Jersey. The newspapers of Philadelphia circulate over a wide territory, extending from New Jersey and the eastern shore of Chesapeake Bay to Harrisburg and Wilkes- Barre. There is a more intensive circulation in the territory bounded by Lancaster, Reading, Allen- town, southern New Jersey and Delaware. The great bulk of the million and a half daily copies of Philadelphia newspapers are read in the >ity and suburban circulation area. The circulation therein is approximately 1,315,426 copies daily, or eighty-nine percent of the total of 1.480.762 copies. The suburban newspaper circulation area as de- termined by the Audit Bureau of Circulation is used in this report because it represents a study of the volume and intensity of circulation of all six leading Philadelphia newspapers, both morning and evening, by an authoritative organization whose Jefinition of the Philadelphia suburban newspaper area has been accepted by these newspapers. Suburban The limits of suburban tele- Phone phone service in the Philadel- Calls phia Metropolitan Area were defined to include only such exchanges as have special facili des required to handle a great volume of telephone ~alls into Philadelphia proper. The classification —_— mf) of such exchanges was furnished by the Bell Tele- phone Company. Each day an average of 68,000 calls is made from this territory to Philadelphia and vicinity. Fifty thousand of these are from localities in Penn- sylvania and 18,000 from New Jersey. —0— —— Real Real estate operations handled Estate by brokers with offices in the Crerations central city are considered a fair index of metropolitan limits, as such operations are directly connected with the building and sale or lease of homes and factories dependent upon city opportunities for employment or labor supply. The real estate determination of the Metropolitan Area is bounded by Marcus Hook, Media, Berwyn, Norristown, Lansdale, Hatboro, Langhorne, Bristol, Palmyra, Moorestown, Haddonfield, Blackwood and Woodbury. Sores p—————— Ticket The theatres, opera, football and baseball games, museums, Agency art galleries, and other similar attractions in ~ Philadelphia draw people from a wide area embracing generally Baltimore, Harrisburg, Wil- liamsport, Wilkes-Barre and Atlantic City. Regular rade in reservations for theatres and sporting events somes from an area bounded by Lancaster, York, Reading, Allentown, Princeton and southern New Jersey. Steady, consistent ticket reservations, from which a metropolitan amusement and cultural patronage area can be defined, come from a territory includ- ing Wilmington, Norristown, Quakertown, Trenton, Mt. Hollv. Atlantic Citv and Salem. The Philadelphia Market Area nn Y—— Definition of Area Beyond the Philadelphia Metro- politan Area, to a large extent encircling it, lies the Philadel- phia Market Area, an area in which more than six and a juarter million persons having an annual spendable income in excess of $5,000,000,000 find it easier io reach Philadelphia than any other of the major market centers of this part of the country. The annual value of products manufactured within it last year was $4,315,000,000. There are 13,000 industrial establishments, employing 661,000 wage sarners who are paid an annual total wage amount- ing to $846,500,000. Determination of this area included consideration of the influence exerted by the principal cities surrounding Philadelphia. specifically, New York, Jor - Buffalo, Pittsburgh and Baltimore, and such factors as highway and railroad facilities. resem orm. Highway The influence of highway travel Travel was established generally by Factor drawing the border lines of the area through points half way between Philadelphia and the other cities named. In some cases, particularly that of the Eastern Shore of Maryland, local physi- cal limitations to travel caused a variance from the half-way point. In the case of the Eastern Shore it was found that while this district is geographically nearer to Baltimore than to Philadelphia and is beyond the half-way point, yet it is physically less accessible ta Baltimore than to Philadelphia because of the PENNSYLVAN J ———————————— tl’ al OSeranton NEW YORK Settysburs — GEE. OHaderstown J4ARY LAN ( iE ¢ Washington i MARKET AREA OF PHILADELPHIA LEGEND'- MARKET AREA mmr STATE LINE ——— COUNTY LINE —m- AS DEFINED BY PHILADELPHIA BusINESS PROGRESS ASSOCIATION JANUARY 15-1930 Tiohi THE MARKET AREA OF PHILADELPHIA Highwav Mileages Between Some Principal Points Phila. ' Baltimore |! Buffalo | N.Y. City | Norfolk ' Pittsburgh Maryland Chestertown ............... BUAOR: «vnvvvmnrsommnsomens Ingleside .......oc00vvuuenn Pocomoke City ............ Rising Sun .........ccu...s Salisbury ..o.oovveineniennnn. New Jersey Kingston ..............0... Lakewood .......ccievunnen Washington .....-......... Whitehouse ..... Cee New York Binghamton ............... Endicott City .............. Pennsylvania Belleville ....... Cees Cogan Valley .............. Delaware Water Gap ...... Harrisburg ......co0vvvnenn Lancaster .. . .....ccc-u. Scranton . VON hGH Towanda . 84 8 7 156 BT 135 84% 18 86* 173* 51 196% 476 455 518 561 386 537 183 145 190 261 166 297 189 226 177 123% 243 102 314 276 318 429 256 387 46 60 67 BE 151 160 213 180 432 467 353 380 19 30 66 73 | 278 288 304 283 344 353 330 253 197 306 305 315 215 | 206 201 210 32 «42 347 237 171 204 81 77 69 73 TH 146 195 85 87 39 «87 207 312 256 204 250 333 83 312 184 347 106 340 156 193 217 324 389 312 212 267 364 ORE 171 168 340 204 230 333 137 * In these items 50 miles are added to land mileage to compensate for 2 hour ferry ride required. —Distances underlined indicate nearest large Metropoli tan Area, except that Norfolk has not been considered in the class with the other five cities shown at top. THE MARKET AREA OF PHILADELPHIA The Following Are the Principal Outside Points in the Market Area Determined bv Railroad Passenser Service Philadelphia] Baltimore Buffalo ' NY, City | Norfolk | Pittsburgh AB @ - ‘eralBlclaTs claTBC Delaware Newark .....c.o0vvunnen Maryland Centerville ............ Pocomoke City ........ Queen Anne .. % New Jersey Cape May . yr Hightstown bt % Lavallette .... .r Princeton ...... 24 Trenton Junction . Pennsylvania Bethlehem . Harrisburg Lancaster .. Lewistown . Dxford ....... Wilkes-Barre ...... 5 198, 5% 9. Williamsport ..........:198:13 141177 ole 3219 |5% | 3) 259 | 8% | 11! A—Distance in R. R. mileage. B—Time by R. R. (hours). C—Number of Trains daily. 100 | 43 184135 ong | au oy necessity for a two-hour ferry trip to reach the Maryland city. In determining the line between Philadelphia and Baltimore on the eastern shore of Chesapeake Bay, therefore, the usually accepted practice was followed of allowing fifty land miles for every two hours of water travel. The railroad time schedules oetween Philadelphia and points on the Eastern Shore are even more favorable to Philadelphia han the land travel factor. In computing the boundary the cost of the ferry ride and delays in meeting schedules are not considered. Pp e— Railroad As to the influence of railroad Travel facilities, distance was not the Focior only factor considered, but also train schedules, running time and frequency of service. As an example of this, it is seen that while Harrisburg is twenty miles nearer to Baltimore than to Phila- delphia, this city can be reached from Harrisburg in virtually the same running time. and by three times as many trains daily. Virtually the same situation exists with respect to Williamsport. Extent of Area —————— The Philadelphia Market Area includes twenty-five counties in eastern Pennsylvania, ten in southern New Jersey, the entire state of Delaware, and six coun- ties on the Eastern Shore of Maryland. Although embracing only seven-tenths of one percent of the total area of the United States, the poe} United States Total % 2978,774 | oa 121,572,000 5.3 $85,680,000,000 | 6.0 195,000 5.6 8,325,000 7.9 $10,950,000,000 7.7 $62.750.000.000 £0 ’hiladelphia Market Area contains five percent of ‘he national population, seven percent of the value of manufactured products, and six percent of the total spendable income. Philadelphia Overnight Trucking Area Extent The territory covered in this of Overnight Ye is approximate 5 square Coverage wy The rie of the highly developed distribution system afforded is apparent when it is shown that within this area, in addition to its tremendous popu- lation, there are 52,373 industrial establishments, employing 1,641,495 wage earners who are paid $2,335,744,000 annually, and who produce each year manufactured goods valued at $13,969,318,000. By virtue of definitely established schedules and wide coverage of territory, the manufacturer in Philadelphia may have his goods placed on a truck here late in the afternoon and delivered the follow- ing morning to his customer at virtually any point within the area. One large trucking firm in Phila. delphia maintains a twice-a-day service within a fifty-mile radius. Service in the overnight area is naturally best between the principal points. More than thirty regular motor truck companies operate nightly be- tween Philadelphia and New York. Philadelphia- made dress goods are placed on hangers in trucks here in the late afternoon and are on sale in New York department stores the next morning. The speed and regularity of motor freight serv- ice within the Philadelphia trucking area is made possible largely by the great network of modern improved highways which radiate in every direc tion from the city. {J Trucking Area United States Total % 2,973,774 1 0.72 121,672,000 | 18.5 $85,680,000,000 20.8 26.9 19.7 21.3 29 a Area (sq. mi) .. Population ...... 3pendable Income Industrial ‘Establishments .. Wage Earners .... Wages .......... Value of Produete 21,475 16,410,216 $17,818,803,000 52,373 1,641,495 $2,385,744,000 £13,968,318.n° 195,000 8,325,000 $10,950,000,000 £62.750,000.000 Scheduled overnight trucking service keeps Philadelphia busi- ness houses and industries in daily contact with a vast terri- tory in which live more than 16,000,000 persons who have total annual spendable incomes approximating $18,000,000,000. Long- haul, direct point-to-point motor freight service is maintained from Philadelphia to cities approxi- mately 150 miles distant, while way-freight motor truck service is maintained on a daily schedule within a radius of one hundred miles of the city. This overnight motor freight area extends to New York and Baltimore, through all of New Jersey except the extreme northwestern end, all of Dela- ware and eastern Pennsylvania. The area is bounded by Baltimore, Harrisburg, Sunbury, Scran- ton, Stroudsburg, New York City, Asbury Park. Atlantic City, Cape May and Lewes, Delaware. This area is one of the greatest concentration senters of population, wealth and business activity Motor Freight Service in the United States. A manufacturer or distributor with a plant located in the Philadelphia Area may reach overnight by established trucking facilities, thirteen percent of the total population of the United States and twenty-one percent of the nation’s total annual spendable income. This in spite of the fact that the Area represents only seven-tenths of one percent of the total area of the country. ARENT Ps. SPE Yon in 1603 "211, ESTABL VALUE CF WIR FACTQOF "a ® REBAR EVERY NISHT Df eYROSH TAN AREA i MARKETING AREA fpacrez TRUCK. RAILROAD FREIGHT Bip wna | MGemNG SEMCLNING | 4 MOMING. TANT Toh Sry 1% 1 Avorn] % | AMGUNT | of ELATEI0 TI {46,0001 47] 376100 111.1] _Jo800d 23.7 £410,216 [145 P3044 5151254163413. 715" 2]ada1z 34568 3 17:818,6031208 139.805, 7526.6 [S463 ab .. J16391357174.. I Saale] 52730 is Is Si Tak 86 JiR 223 [32 25.544] 31.018 5,705,356 72.817 204434] 83. ODT A Mia op’ » MIMN*§ or Sr— —, fLtoviajana LO INA PISTRIBUTION AREAS PHI LADELPHIA MOTOR TRUCK & RAILROAD FREIGHT SAE scr rrr rps sesso TUT IRE TE ons LT —iriomie = womans A” wom Railroad Freight Areas Beyond the overnight trucking area lies a vast territory reached by second, third and fourth day railroad freight service over the three trunk-line railroads serv- ing Philadelphia which permit manufacturers in the Philadelphia district to ship direct to virtually every point on the North American continent. By two-day railroad freight delivery from Phila- delphia it is possible to reach the principal cities in a territory embracing a population of more than 43,000,000 whose annual spendable income is ap- proximately $40,000,000,000—forty-seven percent Extent of Influence 7! { 21 of the nation’s total. The annual industrial produc: tion of this second day area is $32,025,546,000— fifty-one percent of the nation’s total. R.R.Freight Area Dtved Biotes Second Day Total "og, Area (sq. mi) ... 146,000 2,978,774 4.7 Population .......° 43,044,815 121,572,000 85.4 Spendable Income $39,899,252,000 $85,680,000,000 46.6 Industrial Establishments .. 92,730 195,000 Wage Earners .... 5,888,441 8,825,000 Wages ....00v0n0n $6,036,892,000 $10,950,000,000 Value of Produets $32,025.548 nnn $62,760.000.000 Within three days of Philadelphia by railroad it is possible to reach the principal cities in a terri- tory in which live 63,413,047 persons—fifty-two percent of the total population, who have an annual spendable income amounting to $54,653,268,000-— sixty-four percent of the total for the country. Similar considerations hold for fourth day delivery, the territory involved embracing 83,312,385, or sixty-nine percent of the total population of the United States and annual spendable incomes total- ling $63,961,557,000, or seventy-five percent of the national total. Area (sq. mi.) .. Population ..... Spendable Income Industrial Establishments .. | Wage Earners .... Wages ......... Talue of Products Area (sq. mi.) . Population ..... Spendable Income Industrial Establishments . Wage Earners .... | Wages .......... Value of Products R.R.Freight Ares! _ _UPited States Third Day Total 375,100 2.973.774 | 11 63,413,047 | 120.572,000 | 52.2 $54,653,268,000 $85,680,000,000 | 63.8 189,618 195,000 71.6 6,051,021 8,325,000 72.7 $8,341,019,000 $10,050,000.000 76.2 , $45.705,996,000 $62,750.000.000 72.8 R.R.Freight Area] _ Fourth Day 106,000 83,812,385 $63,961,557,000 United States Total % 2,973,714 23.7 121,572,000 68.5 $86,680,000,000 , 74.7 85.6 5.7 87.1 R3.2 166,992 6,303,909 $9,537,776,000 $62.204.444.000 185,000 8,325,000 $10,950,000,000 $62,750,000,000 Steamship Freight Area Extent Eighty-seven percent of the of population and sixty. three per. cent of the total area of a Influence foreign countries having sea. ports are linked with Philadel- phia through direct sailings to 430 ports of the world. This is shown from reports of the United States Shipping Board. Numerically, the foreign population reachable by American exporters and importers through the Port of Philadelphia is 1,583,603,255, and the area, 33,911,000,348 square miles. Due to the difficulty of obtaining information concerning shipments originating in or consigned to foreign countries not having seaports, namely, Switzerland, Bolivia, Rho- desia, Ethiopia, Czechoslavakia and Afghanistan, such countries are not included in this study. The progressive policies of the steamship com panies are gradually facilitating commerce with interior countries by interlocking overland service. Such a service has just been organized with the countries inland from the Baltic and Black Seas and the first ship direct from these ports is scheduled for arrival in Philadelphia during the month of March. 1930. Fastest Growing on Atlantic ——g J Commerce through the Port of Philadelphia is steadily increas- ing in volume. Latest complete reports of the United States Shipping Board, those for the year ending December 31, 1928, show that while the combined tonnage of all Atlantic coast ports for the year declined five percent, the tonnage of the Port of Philadelphia increased ten percent, the greatest percentage of increase recorded for any Atlantic coast port. Commerce of the port during January, 1930, Pla pnen showed an increase over the same month of 1929 of nineteen percent. During the year 1929, according to reports of the Board of Commissioners of Navigation, 13,925 ships, engaged in all kinds of commerce, arrived at or cleared from this port. The total cargo ton- nage of these ships is estimated at 29,000,000 short tons, and the estimated value of their cargoes was $1,500,000,000. The commodities in transit through this port include virtually the entire list of human necessi- ties and luxuries. Locomotives, for instance, are distributed directly from the Port of Philadelphia to China, Russia, India, South America, Australia and other foreign countries. From South America come hides, tanning ex- tracts, wool, coffee and large quantities of nitrate for use in the manufacture of fertilizer and ex: plosives. Outbound ships for Australia carry steel, building materials, agricultural implements, ma- chinery of all kinds, automobiles and refined petroleum oils. From Africa come palm oils, cocoa beans, skins, ores and mahogany. From Russia come rags and ores; from Italy and Spain, cork, olives and olive oil; from India, wood pulp, burlap, hemp and jute. Iph ppl Philadelphia’s importance as a Shipping steamship freight center is acu largely due to its three trunk Existing railroads and its belt line, which provide facilities for direct loading or unloading between ship and rail: road freight car in one handling without lighterage. The facilities for the commerce handled through the Port of Philadelphia include 298 wharves, of which 159 are projecting piers and forty-one the waterfront terminals of the three trunk line rail: “ag roads. Port facilities represent an investment of $150,000,000 in modern piers and equipment to handle every type of commodity. The Port of Philadelphia is located at the head of a thirty-five foot channel at mean low water. This channel extends from the Port Richmond piers, Allegheny Avenue, to the sea. It is splendidly charted and marked with every possible aid to navi- gation. There are 1,100 acres available for the anchorage of vessels. There is a total berthing space of 241,000 lineal feet, There are excellent coal and oil bunkering facili: ties, modern coal dumpers, modern grain elevators with storage facilities in excess of 4,750,000 bushels, and with loading eapacity of 150,000 bushels an hour; two of the largest and most rapid ore hand. ling piers on the Atlantic Seaboard, with total un. loading capacity of 350 tons an hour. The piers and warehouses of the Philadelphia Tidewater Terminal are among the largest on the Atlantic Sea- board devoted exclusively to ocean commerce, with 1,000,000 square feet of covered storage space and docking facilities for fifteen ocean-going vessels simultaneously. Pacific Coast Distribution —_— —— rr —— Sailings to Pacific coast ports offer shippers and receivers of freight a schedule not surpassed by any other Atlantic port. There are engaged in this coast- to-coast service seven steamship lines offering ap- proximately eight sailings every week. There are ten lines engaged in the coastwise trade, operating to every important point on the Atlantic Seaboard and Gulf. In this port the ocean carrier and the rail carrier meet at the wharf. Here lighterage is unnecessary and the transfer of cargo from ship to rail and reverse is completed in one operation. The Port of Philadelphia has sixty-eight ware. houses conveniently located and contiguous to the waterfront terminals and piers. These dry storage warehouses contain 7,653,000 square feet of floor space for general commodities. They are fireproof and equipped with modern sprinkler systems, reduc ing fire hazard to a minimum. In addition there are more than 15,000,000 cubic feet of cold storage space. In piers and terminals directly along the riverfront there are 16,300,000 additional feet of storage space. Storage and insurance rates are low in Philadelphia. These many factors combine to offer distribution facilities of water-borne commerce of unusual com- pleteness, rates that are as low or lower than other ports, prompt, direct interchange of cargoes, a quick turn-around in a non-congested, no-lighterage harbor, and supplies of food and fuel direct from their fields of production. Summary — Advantages Summing up the principal and points developed by the study Reasons of distribution and production in the Philadelphia area, we find this section’s advantages founded on its favorable geographic location. That is composed of two elements, namely, situation or a navigable stream adjacent to the Atlantic Ocean, and a central location with respect to the greatest consuming areas in the country. These natural advantages, of course, constitite only the indispensable foundation required for a successful structure. The other element of the structure is the transportation and handling system which has been built up in the area. It is sufficient here to note that every form of land, water and air transportation is represented in the system, and all modern handling facilities. The trend of development in American industrial history has been along lines of production. It is probably true that this development has been brought to the point where today there is little room for improvement. But the development of distri: bution has not kept pace and that is where the ereatest opportunity for improvement lies today. As applied to such improvement, studies of dis- tribution facilities like the present one are valuable. To show a manufacturer that if he locates a plant in the Philadelphia area he can reach by overnight scheduled motor freight delivery, for instance, any point in an area populated by more than 16,000,000 persons who have a total annual spendable income approximating $18,000,000,000, is to give him a fact of primary importance in his economic set-up. Similarly with the other distribution zones which have been considered in this report, some of which would be the needed standards for some industries and some for others. Consideration of the facts developed by this study leads definitely to the conclusion already stated in the opening paragraphs that from Philadelphia you can reach more people with less effort than from any other great distribution center in the country. Thirteen kx Map showing the countries of the world (in white) served by direct sailings from Philadelphia. Eighty-seven percent of population and sixty-three percent of the total area of all foreign countries having seaports are linked with the Port of Philadephia, the fastest growing Atlantic Coast port of the United States, according to figures of the U. S. Shipping Board. = sO FY "3 a ; = 8X 2k { ; 1 Ey i 55 A w I "T1 > Nn J > THE MARKET AREA OF PHILADELPHIA Highway Mileages Between Some Principal Points Phila. ° Baltimore ' Buffalo ' N.Y. City | Norfolk | Pittsburgh yland Chestertown ............... BIKEBI oye pms smm os suns 4 ngleside ....... vive. Pocomoke City ............ Rising Sun ................ Salisbury s.vvveivnic-nienn, v Jersey Kingston ............0u.... Lakewood ........c.v0vunnn Washington ............... Whitehouse ...oov vvvevennn w York Binghamton ............... Endicott City .............. wmsylvania Bollevilla vvyuinnes suns snes Cogan Valley .............. Delaware Water Gap ...... Harrisburg .....cecoveenens Lancaster ........covevuse. Seranton ....cccieniniiennnn Towanda ....- .c.ceveeaans 84 5 w 156 5 135 84% 43 RE* | 173% 51 136+ 475 455 518 561 386 537 183 145 190 261 156 997 189 226 mr 123% 243 102 314 276 319 429 256 387 46 60 67 55 151 160 213 160 432 167 353 380 19 60 5 5 278 288 304 283 344 353 330 353 197 206 305 315 215 206 201 210 432 449 347 337 171 146 204 195 81 185 87 87 [£) 9 3 | A {93 207 312 204 333 312 347 5 193 256 250 83 184 106 156 217 324 . 389 312 212 267 364 265 171 168 340 204 230 333 997 in these items 50 miles are added to land mileage to compensate for 2 hour ferry ride required. Distances underlined indicate nearest large Metropolitan Area, except that Norfolk has not been considered in the class with the other flve cities shown at top. 2 ~ ~y a Wy 0 3 “wy TH THE MARKET AREA OF PHILADELPHIA The Following Are the Principal Outside Points in the Market Area Determined by Railroad Passenger Service Philadelphia] Baltimore v Buffalo tipo + Bn 1d 3 Sr C "=TelATBIC 391: lelaware Newark .......co00000.d ‘aryland | Centerville ............ | ius Pocomoke City ........' I55|4Y% Queen Anne .......... 96'3% Tew Jersey Cape May ... ....... Hightstown . iis Lavallette ... oe Princeton ........ 3 Trenton Junction .. ‘ennsylvania Bethlehem ... Harrisburg . Lancaster ..... Lewistown ,. Oxford ...... : 198 | 534 9 Wilkes-Barre ... | Williamsport .......... Cex 277 ov 3|21906% | 3(2598%| 11 —Distance in R. R. mileage, B—Time by R. R. (hours). O—Number of Trains daily. 1, 18415 | 208 oss | vine