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ALFRED WEBER'S
THEORY OF THE LOCATION
OF INDUSTRIES
THE MARUZEN-KABUSHIKI-KAISHA
TOKYO, OSAK.\, KYOTO, FUKUOKA, SENDAI
THE COMMERCIAL
PRESS, LIMITED
SHANGHAI
Ph.D.
ALFRED WEBER'S
THEORY OF THE LOCATION
OF INDUSTRIES
PREFACE
In presenting this book to the public I
rassment that
many
writers encounter
a pioneering venture.
He
it
am
last
to give
Weber's
deals. Alfred
an
treat-
spared an embar-
do not need
phenomena
Weber
points
of
While
am
work
itself, if
ing
it
clearly understood,
it is
I feel
mak-
Mason read
not
Had
its
improvement,
let it
day.
It will
is
more perplexing.
its
It is in
subtlest distinc-
PREFACE
viii
out.
German
edition
end of a sentence,
The
German
German
all,
sistance
may
know
it
who knows
wherever
space per-
text itself.
make
text
Had
is
But,
the as-
him
to
and
tion
paragraphs through-
out the book on tendencies of development. It seemed important to include the mathematical appendix
by Georg
Pick. I sin-
cerely hope that the indulgent reader will not feel as did that stu-
dent
who wrote on
cut
S.
it
had the
Bauer.
all
others
Leon C. Marshall.
und
J.
F.
orts)," in Grundriss, Abteilung VI, B, particularly the second part dealing with
capitalistic theory.
TABLE OF CONTENTS
PAGE
Editor's Introduction:
2.
3.
In
4.
In Alfred Weber
5.
Significance for a
1.
J.
in Relation to
xiii
xiii
xv
"
H. von Thiinen
xix
xxii
Theory
and International Trade
of
Author's Introduction
1. Importance of an Economic Theory of Location
2. Limitation to a Theory of the Location of Manufacturing
Industry; Reasons Therefor
3. Method Employed
....
4.
Chapter
I.
IL
b)
....
....
Regional Factors
...
Regional Factors
The Consideration
I^I.
I.
23
34
37
of Material Supply,
Section
23
29
Chapter
20
21
II.
17
20
c)
b)
4
8
20
17
.
12
I.
xxix
I.
Con.
of the "Forces of
Nature"
37
39
41
in
Our
41
ix
TABLE OF CONTENTS
PAGE
2.
The Type of
Its
Use
43
4.
The Nature
The Nature
5.
Relation to Reality
3.
and
of the Locality
of the
Its
Kinds of Roads
Goods
2.
Mathematical Solution
3.
Material
48
of
Industrial
Materials
48
Index,
53
Locational
Weight,
and Theoretical
Conclusion
4.
5.
59
61
Cases
6.
The Factors
7.
Tendencies of Development
....
....
of Transport Orientation
The
from
the
Pure
67
70
73
...
A. Deviations
67
72
45
45
46
1.
Section
Calculation
of
76
76
Rates
According to Mileage
77
of the Transportation
System
...
78
81
81
Together
3.
The
The
Waterways
Effect of the Net of Highways
b)
Further Applications of the Theory to Reality
A. The Price Differences of Materials and Their
B. The Use of Water Power
a) The Use of Waterfalls
b) Transmissible Water Power
a)
82
Effect of the
84
86
...
Effect
.
1.
2.
L The
89
Area
3.
95
88
89
91
88
95
95
to
97
100
TABLE OF CONTENTS
xi
PAGE
Section II.
1.
2.
3.
The Law
of
Labor Orientation
102
102
105
Orientation
107
107
5.
Tendencies of Development
of the
of Deposits
112
Labor Orientation
120
Chapter V. Agglomeration
Section
I.
124
1.
2.
Definitions: Function
3.
124
of
of
Agglomeration
126
.
127
A. Agglomerative Factors
a)
b)
c)
d)
127
128
129
130
130
B. Deglomerative Factors
Section
IL The Laws
131
of Agglomeration
134
135
135
a)
When Does
b)
Much?
Where Will Agglomeration Take Place?
The Size of the Unit of Agglomeration
c)
How
....
3.
4.
138
141
147
156
Added
143
153
(Value
135
139
d) Modifications
2.
117
162
through)
Manufacture
1.
Coefficient
(Formkoeffizient)
162
2.
The Forms
166
3.
Tendencies of Development
of
of Agglomeration in Reality
168
TABLE OF CONTENTS
xii
PAGE
I.
The Organization
173
of the Stages of a
Given Productive
Process
A.
174
The Stages
1.
When Does
2.
Where Will
When
3.
of Production
a Split
B.
C.
Be
Production Is Split?
A More
Precise
Answer
174
174
178
to the Question:
When Does
Occur?
182
The Stages
The Stages
of Production
of
....
183
184
186
187
1.
General Observations
187
2.
190
Section
The
II.
Interaction
of
the
Independent
Productive
Processes
196
1.
The Coupling
2.
3.
4.
Market Connection
The Total Orientation
197
201
206
209
211
Introductory
I.
Remark
IL The Strata
III.
211
The
of Locational Distribution
213
IL Curves
of
HI. Agglomeration
Index
226
Remark
The Locus
214
221
227
.
227
240
245
253
EDITOR'S INTRODUCTION
THE THEORY OF LOCATION IN RELATION TO THE THEORY OF
LAND RENT
"Knowledge
nomic theory
John Stuart
may be most
valua-
change
its
The change
is:
location?
of industrial location
ally discussed
is
it
will ''decen-
Adam
From
an analysis
and international
may
be capable of aiding
monopoly, transportation
rates,
trade.
"
Logic,
"Industry"
6,
is
chap,
ix, 2.
EDITOR'S INTRODUCTION
xiv
of production
to the
market."*^
factor
most
all
the earth
some
of the direct
effects of
that
fertility,
is,
yielding very
same quantity
of labor
fact
and
and
capital."
this
must be proportional
the
of
production
the
mine
(fertility and situacost
at
worst
to
tion taken together), it is more than proportional to that of the
since the value of the produce (the costs)
best."'
moment
to our
term "loca-
But
elusive to Mill,
may be
We shall return
is
and what
is
if
only
factors
tion here to the fact that the passages just discussed appear in
Smith and Ricardo, because of their relation with the system of Von Thiinen.
But the pecuharities of their theories of rent would require too much time to
review for the particular problem in hand (cf. Schumpeter, Epochen der Dog-
chap,
iv, 1.
(New York,
1874,
In succeeding notations
Roman
The
Book
III,
edition).
to
EDITOR'S INTRODUCTION
connection with Mill's analysis of rent in
light
.... The
relation to value. It
its
....
''Land
xv
is
but
is
rent.
little
facilities of
money-making
in the
may
have occasion
and
and
We
distribution.
how
it
shall
becomes important
While
it
would be
interest-
upon
ress of industry
rents,^^
we
shall
have
to content ourselves
The
him
of Alfred Marshall.
to touch
as he called
it,
From
(or,
the
it is
and
troduction to the
first
membered
An
that
it
Economics)
It will
iii.
cf.
be
re-
of the lo-
EDITOR'S INTRODUCTION
xvi
Adam
position of
modifying the
this prob-
lem of location from a theoretical point of view, and consequently attempted no answer to that aspect of the theory of rent which
we have just pointed out. There is a twofold explanation for this.
For one thing, Marshall's main effort was directed toward work-
ing the theory that ''rent does not enter the cost of production,"^*
Marshall does not inquire into the problem which he, like Mill
before him, encounters. In discussing the argument which arose
plain
why
" Der
a less
mine should be
fertile
Part
"Der
Isolierte Staat
in use at
all.
Like Mill,
I.
schaft, 1926.
distinction
profit
on capital
in-
" While
this
cept of "equilibrium," as far as they matter for the problem here in hand, were
treated
" It
is
stated as follows
one commodity
is
"When
its field
of production.
The
first is
raised
by
it which only
any particular argument we
take together the whole expenses of the production on that land, and divide these
among the whole commodity produced, then the rent, which ought to count in,
is not that which the land would pay if used for producing the first commodity,
?)Ut that which it does pay when used for producing the second" {Principles, 4th
pays
ed., p.
"
its
way
And
483).
Cf. loc.
cit.,
p. 484.
if
EDITOR'S INTRODUCTION
he speaks of the fact that a
turer to
move
not say
why
into another
demand
cause a manufac-
may
rise in rent
town or
xvii
first
instance. Similarly, he
why such
all.
urban land
increase in the
Still,
more
demand
retail,
what he
If in
it is
in his discussion of
equal facilities in
all
sell in
the
more convenient
aggregate of the excess charges for cost of carriage to which his rival
And, we
may
translated in like
all
is
is
the
put.
year, and
situa-
less cost
are
to his trade,
can be
into
first
commonly regarded
is
But why does not the second manufacturer move to the more
favorable location? This fact certainly needs an explanation!
In a footnote Marshall refers to two examples, in both of which
the competitive position of two productive units
is
the same
loca-
"Favorable loca-
But
^^
Principles, V, chap. x.
" The
italics in this
EDITOR'S INTRODUCTION
xviii
by
On
not clear
it is
not explained
why
how
same balance
is
it
of advantage/* Feeling
perhaps the inconclusiveness of his reasoning, Marshall proceeds to treat of "exceptional cases in which the income derived
Much
is
earned by individual
and
effort
have been
word
made more
The
it)
if
is
distinguished
quite clearly.
Marshall's reluctance to undertake their analysis in connection with these rent problems does not, however, prevent
him
in
particular localities."^^
pointed out
later,
refer to
extractive industries.
we have
Der
cited.
It is
Isolierte Staat
with outspoken approval, while failing to make use of Thnen's theory of location contained therein.
"
in
Industry and
Trade (1923), chap, ii, and elsewhere, where he quotes Alfred Weber (p. 27).
But it seems rather doubtful whether he appreciated the full significance of
Weber's theory, since he says of
Squares
in transport
The connection
is
and trade
it
that
it is
a development of Lardner's
Law
of
p. 14).
EDITOR'S INTRODUCTION
locational factors; but
any way
like Roscher-^
^he
does not in
Thiinen had
I
much
xix
first
worked
out. This
is
new
is
found in Thiinen.
also to be
to that theory
die
Naturgesetze,
S. Hall,
"The Location
It is rather
be given justice within the scope of this brief essay. Similar considerations com-
me to pass over without more than a casual reference the difficult problems
which arise from the twelfth chapter of the sixth book of Marshall's Principles
where he deals with the influence of progress on value. Such further discussion
would have afforded an opportunity to consider the work of some of the writers
pel
and
J.
M.
Clark (Principles of
Overhead Costs).
^His theory
Edgar
is
to be
Salin, writing
it.
EDITOR'S INTRODUCTION
XX
which
all
is
deter-
is
it is
supposed anyway
for the purpose of this analysis that labor cost (wages) are equal
throughout the
throughout. It
plain.^*
is
ly,
analysis as
"how
will the
The
well-known.
is
He
ness.
Thnen
".
away from
eine bildliche
the
den Ueberbhck erleichtert und erweitert; die wir aber nicht aufgeben drfen,
weil sie, wie die Folge ergeben wird, so reich an Resultaten ist."
Op.
expressly
made
p. 227.
''
Op.
cit.,
p. 37.
is
noted by
EDITOR'S INTRODUCTION
But Thiinen was, of course, well aware of the
xxi
level.
is
not
This second
seeming contradiction
is
work he
first.
Such
in the
one
it is
portation
is
possible to
wage
assume
level is
portance for
indeed,
changing
all
is
more uncultivated
that no
is
soil is available.
is
In the
first case,
upon
mon
to
both cases
is
is
the variable.
What
is
com-
if
which
it is
less
more
Weber.
It will
be ob-
^Der
(so
EDITOR'S INTRODUCTION
xxii
of
wheat per
tion
is,
The
validity of this
assump-
Be
this as it
no significant application
to
manufacturing industries.
It
is,
on
amount
More
of this later.
its
own
sake.^^ It
is
Weber
dustries,
asks:
What
in-
move
fact,
first
carried
such an ap-
sight because
it
possible for
question,
rie
und
^ Alfred Weber, TJeber den Standort der Industrien, I. Teil, Reine Theoand Alfred Weber, "Industrielle Standortslehre (Allgemeine
des Standorts,
Abteilung VI, B.
The few
itself.
That
will best be
to describe
own work.
EDITOR'S INTRODUCTION
given place. But this answer
its
is
xxiii
just indicated.
such,
it may be useful to
compare the theoretical picture from which he starts with that
of Thnen. Like Thiinen, he assumes an absolutely even plain
and equal transportation rates throughout. But he does not assume one consuming center; he assumes many of them scat-
rials at
of fuel
fuel
cost /
Weber's assumptions.
The
those which
are primary causes of the regional distribution of industry (regional factors), and those which are secondary causes of a redistribution of industry (agglomerating
and deglomerating
Weber
fac-
By ana-
It
is
true; but
is
EDITOR'S INTRODUCTION
xxiv
Weber's problem
What
is:
is
justified
by the
fact that
move/
from one location to another? It is even possible to assume variations in the wage level (labor costs) of such a given industry
without necessarily implying a change in the labor costs of any
other industry, like the transporting agency. Apparently these
are exactly the same factors which Thnen had found. But, unlike Thnen, Weber analyzes the effects of a change in both
variables. After having ascertained the laws determining the location when labor costs are constant, he proceeds to ascertain
the alterations resulting from varying costs of labor. He is able
to formulate his result in definite rules. Firstly, he finds that the\/
location of manufacturing industries is determined (transportation costs being variable, labor costs constant) by the ratio be-
localized^'^
Weber
The
ex-
by varying
costs of labor?
variation caused
ratio
by varying labor
determined by the
all
fuel,
is
costs
An
etc.)
the latter
stze, p. 121
ff.
a material
to be
is
It
is
had everywhere
is
whether
at equal prices.
^^It is fairly simple to relate this rule to the theory of land rent as
comes a function of
location.
it
be-
be undertaken below in
By way
of illustration, this
may
be said
their entire weight into the product (silver, etc.); others not at all (coal, etc.).
This distinction
is
of considerable significance.
I is
of all industries
Weber
is
able to
make
is
the for-
not greater
EDITOR'S INTRODUCTION
transported. This total weight
is
xxv
is
and
Now Weber
its
The
the locations
The
results of such
an anal-
To
production will
fall, all
^ It
is
costs
C exists.
move
at
If,
once from
and
to
A .^^
A
It
mind
would only result if it were assumed
any kind and any weight any distance.
that
costs the
it
^'
It will
same
to ship
goods of
although incom-
due probably to his preoccupation with the problem of rent (cf. above,
p. xviii). But he failed to carry his analysis beyond this elemental stage and did
not study either the variations caused by introducing labor costs into a system
of locations determined by transportation costs or the variations caused by inpletely,
^ Cf
mand"
It
ed..
und
Vol. II,
2,
Sozialpolitik,
p. 800, 901
XXX
ff.
must not be objected here that this is inconceivable, because the "deA would at once raise the cost of labor in A, since it is an
for labor in
'^
EDITOR'S INTRODUCTION
xxvi
we should be
because
its
to
willing to call
it
ahke; whether they had high labor costs per ton of product, or
low, they
would obviously go
to the location
which rendered
this
for entering
paragraph
is
to
transportation costs
costs,
of analysis only in
its
becomes capable
it is
fred
It
two fundamental
is
it
The only
ductions
is
whether
it
to stick to
and
to treat labor as
an indirect
factor.
to the
This
may
wage
be the reason
level.
why Thnen
it
in relation
problem of location.
among
is
is
is
upon the
EDITOR'S INTRODUCTION
no
xxvii
logical difference
local
by
may
factors
and
by
factors
or primary
(Weber
These indirect
not capable of
from the
social na-
is
more than a
certain
quantum
of production
is
agglomerated
The agglomerating
at
factors
(advantages from large-scale production through technical apparatus, labor organization, etc.) are related to the nature of
all
company
How
an answer to
vious.
caused by
in order to
is
ob-
them
*
He
tation alone.
ing
significance of
an understanding of rent
The
agglomeration go?
He
by
treat-
Cf. his
"The Theory
Journal of Political Economy, Vol. XXXVI (1928), where he bases his arguments
to some extent upon Alfred Marshal; and "Das Standortsproblem in der Wirtschaftstheorie," Weltwirtschaftliches Archiv (1925),
Cassel.
XXI, where he
EDITOR'S INTRODUCTION
xxviii
lated industry,
costs of transportation.
of product for
each quantum of agglomeration constitute a function of the agglomerating factors, the ''function of economy."
The
increases
of the economies
Weber
transportation.
The
by the (uniform!)
be
rate of
which shows
realized.^-
with each other, with the result that the tendency of industry to
concentrate at a few locations will be further increased. This
finding
suffice to
show
that Alfred
Weber and
would
we
saw,
is
may
wondering whether
it
Labor
As a matter
of fact, even
when
may
CL infra, p.
153 .
loc. cit.
was pointed
EDITOR'S INTRODUCTION
rent
is
It is at
was
xxix
becomes apparent,
for
it
in connection
presented major
difficulties
effect of forces
and international
tariffs
stand out
among such
forces.
As
A more elaborate
hint.
of the
work
an adequate theory of
is
monopoly,
to the theory of
I shall
of at least A. C. Pigou
thought suggests
itself at
once:
and
M.
J.
Clark.**
But one
deglomerating tendencies
if all
where no
rents, then,
i.e.,
rise in
rent.
(let
us say in a socialist
of agglomeration.*^
*^
Predhl,
But
tion cost.
it
is
if
rent
is,
as I think
was shown
sufficiently,
assume
it
and transporta-
a function of location,
was
also questioned
by O.
und
Sozialpolitik, Vol. V, Nos. 7-9 (1926), and Predhl's reply, "Zur Frage einer
allgemeinen Standortstheorie," Zeitschrift fr Volkswirtschaft und Sozialpolitik,
" Cf
.,
M.
for example, J.
do not
know
hov/
much weight
if
is
it is
amusing
to note that
vogue
price
statistics in
development
in that country, I
mechanism lends
it
am
told.
The independence
of its
Weber's theory
EDITOR'S INTRODUCTION
XXX
since rent
run,
in a so-
cialist state,
final
what has been said about the locational foundation of rent, suggests a more complex situation, as we are apparently dealing
with interdependent variables.
rates,
good deal of
light is
gett.^
by Alfred Weber
of the 'in-
that of
many
other economists.*^
The
forces
field,
this led
of the different
kinds of production over the entire earth rather than from the
Cf
his
The
und
die Handelspolitik,"
XXXII
schajt
Sozialpolitik,
(1911), 667
ff.
There
XXVI, 97
how Ohlin
**
ff.).
It does
Cf., for
upon
his
article,
unfortunately,
theme.
"By
local-
ization of industry
localities,
expects to elaborate
is
phrase 'territorial division of labor.' " This in 1923 the article [on localization]
does not even mention the Standort der Industrien."
;
EDITOR'S INTRODUCTION
into consideration
when
xxxi
makes
it
by the Ricardian
impossible to appreciate
The
nomic
forces
The farming
1.
2.
(i.e.,
industries
influ-
this foundation.
losses during
4.
From
this it will
bly upon the basis of actual events in England at the time) concentrated
its
attention
to
it
is
though, as
in Marshall.*^
(al-
^Principles, 4 ed., p. 761. "It is no slight gain that she [England] can make
cheaply clothes and furniture and other commodities for her own use but those
;
improvements in the arts of manufacture which she has shared with other nations have not directly increased the amount of raw produce which she can ob-
from other countries with the product of a given quantity of her own capand labor. Probably more than three-fourths of the whole benefit she has
derived from the progress of manufactures during the present century has been
through its indirect influence on lowering the transport of men and goods, of
water and light, of electricity and news; for the dominant economic fact of our
tain
ital
own
age
is
EDITOR'S INTRODUCTION
xxxii
agriculture there
is
must
when he says
also be industry.
theory of location
is it
possible to
satisfactory theoretical
It
as determined
by transportation
costs alone
is
subject to in the
much
to contribute
may
new
industrial
To
industries.
It
is
i.e.,
....
individual power,
most rapidly
in aggregate
volume and
they also which have done by far the most toward in-
But why?
(ItaHcs mine.)
tation are so important, their operation ought to be given the appropriate atis in some way related to the question of land
by Marshall "The influence on values which has
been exerted in the modern age by the means of transport is nowhere so conspicuous as in the history of land; its value rises with every improvement in its
communications with markets in which its produce can be sold, and its value
That
tention.
this
falls
is
whole matter
also asserted
deutet,
wenn
darstellt,
sie
its
own markets
loc. cit., p.
668):
"
zu verschieben." This aspect has recently been expanded upon and has been
made
locational development
lers
ff.
EDITOR'S INTRODUCTION
xxxiii
new
material re-
An
adequate
INTRODUCTION
The
a part of the
is
may
be supposed that rules exist for the one as well as for the
economy,
other.
Still, political
mous content
it
is its
that
it
is
its initial
natural con-
if
partly a function of
its
is
only
etc.,
economy has
left to
theoretical consideration of the distribution of economic processes over a given area. Naturally, the latter
The
result
is
it
as unsatisfactory as
omy,
is
able to approach
we had
i.e.,
left the
political econ-
Industries
ing industries.
is
Editor.
is
field.
insignificant
We witness
capital
seen.
We
We
and
and
distribution, the
their collapse.
we
We
development of
in-
tariff policies
(Handelspolitik), and
we make
use of
by the nature
of Thnen and
location to be determined
We
ess?
work, in spite
etc.,
while assuming
We
also notice
national boundaries.
grow poor
urated.
erate,
in
We
human
We
ters, talk
result,
others
it
To some
of us
it
and
its
posterity; to
INTRODUCTION
as yet
among
and
social
it
motives when
nomic forces?
It
may be
nomic and technical development; or perhaps they are the consequence of the social organization of our economic system.
we
controlled
this
really ought to
by hard-and-fast
economic
sit-
uation.
Ambition might tempt us to formulate a general theory of location. For it seems possible only on the basis of general rules
of locational distribution of economic forces to disclose the causal relation
it
how
learning
the
phenomena
lated.
Still,
same
we need
time.
each of these at
but
lo-
ber of people
such as
ers,
who
are,
Only the
relatively inconsiderable
num-
officials, soldiers,
of the other
rest,
may
be, affects to
wherever he
location of consumption. In
may be,
affects to
some extent
The
is,
therefore, in fact, to
a large extent a matter of appearance only. That part of distribution which represents the actual
movement
of goods
is
ge-
production (productive process of distribution) or between production and consumption (consumptive process of distribution).
It is impossible to explain the
goods in
all its
of economic processes
at the point
it
may
is
abstractly; but for the purpose of explaining the economic location of production this procedure
is
impossible.
Each part
of
INTRODUCTION
production orients
itself
The explanation
mind.
of this orientation
locational theory
we
Because of
We
tion.
in
movement
of goods,
i.e.,
who
seats of
The
cir-
money, that
is,
we say nothing
and
credit.
And,
cal
is
movement
of their own,
and
have a geographi-
ly be explained separately.
As has been
and explain
its
indicated,
if
location completely,
last
least
it
will not
be very
difficult to arrive at
or
at
such a theory.
it is
of
in-
There are good reasons why we should conourselves with this analysis. We have a theory of the loca-
dustrial production.
tent
it is
true,
by Thiinen, although
is
largely formal
and
it
abstract.
needs, I
and
far
Schaeffle
although
more important
processes.
To be
it is
and
modem
is
displacing
methods of agricultural production. But they are upon the whole simple, extensively analyzed, well-known matters, at least to the extent to which
the locational displacements of the different
in
it.
The
(I
do not
We
shift-
tendencies, not only because they are greatly neglected, but also
How shall
fact.
that be done?
is
We
by
have well-
INTRODUCTION
developed
which cover
statistics
and
ter at least in
many
We
countries.
say that on the whole the data are scientifically analyzed. The
essential aspects of agricultural locational distribution
With regard
if
not,
our
it is
we
to industries, however,
own
and de-
fault.
mere mate-
rial.^ We do not even know the raw figures of international distribution of production of more than a few trades, such as mines,
salt
in other
fiscal or
we
export figures in
use, for
figures
is
all
all
resources
except in terms of
The
trade
number
us suggestions regarding
size,
This
is
What is
to
hidden so
far.
We do not
do injustice
to
purposes.
^
The
this
not available.
all
Editor.
in iqog.
way
quantitative
for even
one industry
industry
is
is
practiced "primarily"
We
same country?*
locational study, to
"outside,"
if
we
same
i.e.,
the two. Similarly useless for our purpose are otherwise quite
estimable
industry
itself.
If
we
of industries,
we soon
find that
we grope
in the
dark concerning
its
entire development!
any
dis-
them as things
stand.
little
We
ought to
is
realize,
silhouettes.
It is
in this situa-
Compare the maps of numerous writings on the English industries simimaps of distribution of industries which are added to the reports of
;
larly, the
factory inspection.
^
They
Compare
are used
the
maps
of the official
industry in Teubner's
German
reports on the
Trade Census.
I suppose
faute de mieux. For evidence that they are not only useless in principle, but that
one gets quite a distorted idea about the whole matter, compare Part
II.
INTRODUCTION
upon one period, and we
terial available
German
It is further neces-
But we want
been indicated
ments within
still
earlier.
more, and
as has
this (industrial)
body
laws
sufficiently exact to
nomic forces
in
such a
state to
The
more
us that
its
we should have
to
forces to experiments
laws
He
essential enterprise.
that inasmuch as
if
will in his
well-known fashion
we wish
to find exact,
we cannot do
that,
i.e.,
we ought
life
and
tell
and
scientific,
to content
complexity.
By making
phenomena,
in spite of their
tific"
and "philosophic."
4th ed.,
92
1.
Editor.
und Naturwissenschaft,
10
we may
ascertain,
and prepare
measurement.
this essay,
10 at least
if
not
all,
By the
in principle.
say, will be
blamed
and even
for
We
will
probably be approved,
have
es-
to develop the
we
term pure,
i.e.,
independent of any
we
have to show what particular form these laws remodern economic order, and what additional rules,
or perhaps only regularities, enter. The second phase of the
work will of course contain an explanation of the interesting relationship^ between these two kinds of laws and the large social
ly,
shall
ceive in the
here occurs in
''
Economy
it seemed to have lost completely under the imBooks like Karl Biicher's Introduction to Polit-
which the
last is
Usually
hold outside this evolutionary view and to return to theory, the expedient of
such an abstract "pure" system was used.
It
it
was
if
all
will
Smith and those following him is "capitalistic" and representative of the stage of development with which they were concerned. The assumption of such a "pure" system of economics simply marks the
return to what would be styled "economic theory" in England and America. Cf.
thought of the earlier thinkers
ways
Relationship
is
Editor.
upon the
particular
is
not
al-
by "forces" and "relationship," respectively, dependmeaning it has in the respective connections. Editor.
like
INTRODUCTION
only in the
first
ii
is
deduction exclusively.
We
it
will
be possible to use
(Mechanik) of "pure"
system
will
will
it is
It
The
For the
details
we
shall
have
to
we shall have to find the premwhich must somehow be due to the particular nature of
modern economic or social life. Only from these premises may
a general kind. For these latter
ises
we deduce
and at
same time can perhaps give us the means of understanding
the general aggregations of population in modern times
that is,
the
An
Standortslehre (Allgemeine
riss
und
is
kapitalistische
Due
70-82.
" Details
in chap.
i.
Editor.
Editor.
in
Grund-
12
by an abstract
theory, which
reality.
mentioned
earlier
is
work
i860 before
where
German
it
will
be better
indus-
theoretical
to present
it
theory be compounded.^^
is
as follows
The
first
part
orientation of industries,
i.e.,
to
which these
factors work.
The second
be based upon:
a)
An
German
b)
An
analysis of
We
have today
"
It
is
has to be kept in mind that Professor Weber does not work out his so-
An approach
to
Editor.
it is
made
in his con-
INTRODUCTION
tion,
and therefore
is
and
italism
is
appear with
13
modern cap-
it.
It results,
we may say
dis-
main
a commodity bought today and
in hinting at the
sold tomorrow,
industrial aggregations
call
I shall
many
course,
I
other things.
say this only to indicate that the "realistic" theory will en-
modern geo-
graphical revolution. But only a part; the limit of the conclusions of the second section of our study will be found in the limits
of
its
movements
ganism
within a
fluence of trade
and
tariff policies;
Our
first
world)
and would
14
The
mentioned above. In
attempted
which
This
is,
rather difficult.
new
fied
data.
is
desir-
We need, in order
We need primarily
clarity as to ideas
and
facts
and
their relationship to
how
and environment
We
both
what we
call
in different cli-
how
far this
dependence changes within the framework of the modern tech14 nical and economic development,
the international problem
we
etc.^*
For an understanding
of
and labor
studies
policies)
which we
upon the
local grouping of
There
is
economic forces-^
and
tariff
some
all
our the-
policies.
We
of these differentiating
and tariff policy) is generally very much overno question, either, that others, like climate and
cultural environment, perhaps even "race," have considerable importance
so
factors (particularly the trade
estimated today.
But there
is
considerable, in fact, that they will be felt even in analyzing the seemingly uni-
form German body, and that some "dark spots" which remain can hardly be exby them. The available statistical material unfortunately does not
plained except
Cf
Wissler,
in this
Man
and Culture,
Social Mobility.
Editor.
and
i.e.,
Clark
P. Sorokin.
INTRODUCTION
15
many and
difficult
matters.
But
we
much of
what is presented within the narrow frame of this essay must be
corrected, and the reader will observe that there remain unsolved
problems, a fact which will not be concealed.
This book is expected to be a beginning, not an end.
15
irrespective of this,
CHAPTER
to be a
com-
their factories
If we approach the individual manufacturer with a question concerning the choice of his location, he
it
well despair, as I
have
formulas for
the solution of the different elements, or even of ascertaining precisely their limits. Still,
reality,
and
to isolate
it.
I.
TERMS
In order to do this
terms:
'
first,
M.
Haig, "Some Aspects of the Regional Plan of New York and Its
"Toward an Understanding of the Metropolis," Quarterly JourEconomics, Vol. XL. Editor.
Cf. R.
Environs," and
nal of
17
i8
1
we
By
"locational factor"
is
vantage
a saving of cost,
is
produce at
i.e.,
An
ad-
product at
less cost
than
else-
where, to accomplish the entire productive and distributive process of a certain industrial
another.
We
product.
sufficient accuracy.
It is necessary to
be exact in
commodity
is
this respect:
a given com-
The pro-
this
may also
is,
tion or displacement
is
But
this competi-
It represents the
It
it is
does not
displacement of
is,
however, an object
We
have
to solve that
19
may and
it
fre-
quently will be the case that the extent and the importance of
a given productive advantage
qualities of the
is
same product.
It
negligible as
between different
may happen
qualities of a
has
so,
these different
purpose of loca-
qualities
its
but separate. It
is
terials
and other
to deal with
two
different productions
common).
We have
their
The
ory.
field in
and
foregoing, however,
As a matter
in
is
of fact, there
which products of a
approximate
same product
is
at dif-
compelled to
no product
is
is
truly
possible only
whenever
in reality
no difference of quality
is
recog-
reality.
is
whose distribution of
20
tors
This
much
and
locational units.
II.
How
shall
we group
We
is
to say,
we wish
seek a
to resolve the
result only
all.
and
to
what
extent.
question
is:
How
by
of industries be explained
It is
and
how
far only
by
It
may
elucidate the
19 one
way
or in another."
On
it
be consid-
''more or less in
etc.,
and (2)
into
To
"distribute regionally"
means
to direct
21
and thus
trial locations.
To
to create a
(irrespective of
ically),
and thus
may be
something
framework
situated geograph-
which industry
by the
by
cost of transportation or
is
drawn
to
points geographically quite definite, though changing their position as industry develops.
The
factors
whether
it
to agglomeration
by the high
if
industry
rent; industry
is
is
its
The
factors
which operate
woud be no
direct dependence.
draw
On
industries hither
the
and
22
thither
may be
social or cultural
For example,
spatial position
all
differences in cost
and climate of
which
result
from the
phenomena
some types
of labor
may
of nature which
The differences
may
of the
(differ-
may
in
dif-
that
something which bears no relation to any natural condiand represents a purely ''social" factor of location.
is
tion,
It is desirable to
and
make
this distinction is
later.
For
which
is
it is
bound
to
of procedure
is
to be independent of
empirical theory.
locational factors
is
The importance
indicated
by the
must be
of this classification of
fact that
it
defines the
two
But it will prove its value later. For the present we shall attempt to build up the "pure" theory without applying the distinction fully or exactly. To be specific, we shall exclude from
the purview of the pure theory
social
We
and
cultural nature
all
how
reality reveals.
and technical
form
social
cultural
elements
and
factors contain in their present
which are due to the particular economic and social order, the
shall not
even investigate
we ought
make
this investigation
social
23
But
and
cul-
this will
not be done. It will appear that these elements do not alter fun-
how
these laws
work out
in reality.
It
general rules, and to do so within the framework of the discussions of the pure theory, then to leave
them
to a special treat-
will, upon
and technical factors, be carried into the
ramifications which the modern economic order presents. This
method of treatment will enable us to reach the problem of
reality at our first attempt, and at the same time to verify principles by reference to actual life.
Our analysis will be based upon the distinction between general and special factors of location and upon the distinction between regional and agglomerative factors. The distinction between natural and social factors will only silently accompany
our discussion.
III.
Can we survey
made
Obviously, a
is
no
we need
in order to
all,
this is
and theory. We need a knowledge of the genof location which are applicable to a greater or lesser
how
we know these we
Next,
1-
y ascertaining
further facts,
we can
by them.
22
24
ticular causes of
tors.
specific characteristics
We
shall
in advance,
provided
its basis.
We can
working,
we can
23 work which
is
by considering only
we know
created
by them
(cf
above)
and deglomerative
create a certain
number
factors
and
They tend
to
which
is
and deglomerative
tive
resulting force
We
composing
may
it
we do not need
The
factors
pure theory
factors of location
We
We
can
by analyzing some
tion.
at
work
in
it.
^More
in
an isolated process.
25
But we are not looking for them, an5rway; we are looking for the 24
and they may be found in the way indicated.
We have to find, obviously, those elements of cost which
regional factors,
differ
we have
we
This idea
is
itself;
and labor
is
invested. In
costs; those of
and
2,
monetary elements
all
we meet again
in the guise of
We
have
to ascertain,
(in so far as
first,
this use,
"Capital."
Editor.
cf
We
have
Economy,
re-
which
article
on
26
them are expressions of a particular economic order {Wirtschaftsform) and which are expressions of every economic sysof
tem.
The
latter will
factors in their
modem capitalistic form, which is the only one practically available for analysis. Nevertheless
we work with
the elements of
The
made concerning
the fore-
by the
capitalistic
it
its
its
"profit." In each
costs are
advance pay-
ments covering not only expenditure of goods and labor but also
of interest
remarks
we
and
may
These
What form
if
The
first
shown previously?
step in the natural process of production
was
the securing of the real estate for the location, and the securing
is
money
[interest plus
concerned.
is
The
27
real estate
is
is
con-
sumed but gradually. Both appear in the final price of the product as the interest rate of the sums spent on them.* In addition,
the fixed capital appears with a monetary rate of amortization
proportionate to the time required to consume the fixed capital.
2. The securing of the materials and power which constitutes the second step in the "natural" process of production
is
We
tion.
consump-
The total price (Anschaffungspreis) paid for the maand power supplies plus the interest resulting from the
advance of funds used for buying them enters the market price
present.
terials
(Warenpreis)
3.
The
entails the
human
labor.
sidered already.
*
It
of course, of no significance
is,
neur's
own
terest rate
The first two elements of cost have been conThe last one enters into the market price (Wa-
capital.
must always be
must be provided
for.
The
whether
is
stated
there,
by
it is
is,
as
is
well
its in-
known
becoming ap-
it is
on capital (Kapitalzins)
overcome time (Zeitberwindungsgter). This advanced capital (Vorschusskapital), then, makes possible all the
advance payments which compose the monetary costs as explained.
enabUng one
to
Editor.
I.e.,
I.e.,
Editor.
28
The
is represented by the
which further increase the price by their
amount plus the interest on the funds used.
4.
costs of transportation
full
It
is
all
etc.
To
first
7)
pense of production by
tions
To
the
(general management,
sufficient to
theory.
As
for profits (i), they can never (at least not in the last
become
become
terials, etc., of
its result.
by entering
They can
mastages. As
it is
Bhm-Bawerk). To give an
tion:
If
from
29
fixes prices
not contenting
itself
illustra-
which vary
a "safe" district
may become
we can
it is,
eliminate
like profit
pure theory we
of price (2-6)
simply,
i.e.,
ele-
capital.
From
this
it
follows that
we may
2.
clearly. It is necessary to
this discussion in
which
wages of management and payment of risk are part of the cost of production
and not part of the profits. Weber is here, as throughout, concerned with the
"pure" or "static" system of economics. Cf above, p. lo. Editor.
.
30
3.
of
the place of production and thus represent general regional factors of location? Let us begin with the last one.
1.
The
30 upon the machines due to greater humidity of the air. But theses
would be special, not general regional factors, and do not concern us here.
2
The
have locational
significance
in connection
we
The interest rate varies,
an,;
and
yields a question-
it
given country as
it
etc.^ It
as
can never be
tem. In fact,
it
between
and country,
city
(i.e.,
It
was only
we
German
31
It therefore
as an agglomerative factor
The
3.
not regionally
amount
price of land
may exercise a
The
regional influence.
prices of all
in
This
ulation.
will
the kind of agricultural production;" but for the choice of industrial location
much
price in
it
it
if
influences the
a modern spin-
ligible
The
$240
will
have
to
it is
annum
cause an additional
to $800.
This
is
Even
acres
almost neg-
it is
is
from
not im-
mated
Thomas
steel
works which
may be
esti-
250 acres for an annual production of 300,000400,000 tons^^ has to pay $250 instead of $50 per acre, and thus
deals
to require
Thnen, Der
which
Editor.
" Since
stituted for
this is an example only, dollars and cents and acres have been subMark, Pfennig, and Aar on a rough average. Editor.
32
has on
land.
its
The
difference in interest
dredths of
is
much
cise
The
if
local agglomeration
ple,
they would
mean an
among
of industrial production.
steel
count of rent (Preissteigerung durch Grundzins kost en) amounting respectively to $0.125, $0.25, and $1.00 per ton. These are
kind.
It is
encies.
4.
But
will
may
The
and other
Regarding
b,
be broken up into the same elements into which we have resolved the costs of that stage.
The
^'Why Weber should use an interest rate of 2.5 per cent in this instance
when he used 10 per cent in the previous one is not clear from the text. But the
reasoning seems to hold good, even if the difference amounted to as much as
0.08 per cent, as
" Cf
.,
it
would
if
an
were used.
regarding the
values in Charlottenburg.
Editor.
etc., in Berlin,
of cost,
33
factors.
Regarding
a,
raw
new elements
of cost for
they in fact represent not only a new, but apparently a geographically varying,
element of
The
may
materials.
the
first
5.
The second
33
It
differences of cost
regions. This
wandlung) within the stage of production here under consideration as well as indirectly
by the
It
should be
(6) which
mean
costs.
^^
have to be met
in order to
finished products.
It is
They
will
vary ac-
cording to the length and nature of the road which the materials
^"The German text reads
der
Lhne dabei
in
kosten" spricht.
Frage
".
steht,
Editor.
Hhe
Hhe bezogen auf irgend eine
wenn man przis von "Arbeits-
sondern ihre
34
fin-
Sometimes the kind of transportation system will make a differThese costs, then, also are regional factors of location of a
ence.
general kind.
IV.
The
lo-
of
deposits of materials,
portation.
We
by another, by
we
shall
re-
gional factors.
The
material operate as
if
same
may
transportation.
factor,
but
may
a separate locational
which, of
This result
is
most important
reality," p. 74.
we learned before
35
kind
(i.e., all
tive factors,
we may
We may
uniform ag-
is,
all
its
dynamics.
costs.
Let
created
by the
first
Ap-
parently, then, the differences of costs of labor (the second locational factor) represent a force altering this basic network.
The
first ''distor-
industrial location.
fundamen-
tal orientation of
and of an alteration of
this
locations" (Arbeitspltze).
35
in other words, the entire
'group of
all
is
we have not
so far
network and
shift
it
And
labor costs,
group
is
a "unit"
is
competing
which
this
The only
36
question
is
to
To
By introducing the
we seek to make an
show
this will
isolated
36 processes of production.
CHAPTER
II
SIMPLIFYING ASSUMPTIONS
I
is
But
und Rckwirkung)
different parts of the same
it
results
from
economic
of different
spheres and of
we
We shall assume
some
that
of the facts
which are
in truth
thus isolated,
we
we
mechanism,
On
is
and
i.e.,
shall
created thereby.
We
shall
when we
is
in
of materials as
which,
in other words,
so correct
is
trial
materials
is
The
graphical location
by a
its
geo-
products, that
37
is
to say,
upon the
38
orientation of industry.
Thiinen/
In placing industry for the time being theoretically into a
given geographical ground plan of material deposits,
we
shall
{Rckwirkung) which
upon this ground plan. This assumpbe examined and brought into accord with
industry
may
tion will
have to
exercise
reality later.
The
2.
phenomenon.
The situation and size of the places of consumption will be assumed in the pure theory as a given framework of orientation.
We
of industry, merely
by
The
all
other products.
and molded by
Finally,
3.
its
we
basis of industry.
productive connections,
is itself
this industry.
We
of an area covered
by
man
We
shall fur-
''fixed,"
limited.^
Here
also
we
is
un-
by codetermining the
wirtschaft
^
This
Vol. II,
^The
is
and above,
iii,
demand
for
p. xix.
Editor.
p. xxv.
be found in chap,
Cf.
in
local
sec. I,
SIMPLIFYING ASSUMPTIONS
labor.
39
i.e.,
generally influenced
is
cies of industry.
by the other
moment by
by the
realistic theory.
all
of
them
will
will
appear necessary
accompany us
for but
II
As the foregoing
tors shows,
tion is
we assume
in
all industrial
produc-
tion,
We
In
by
The
either given
electricity.
question
is
concept of transportable materials only can include the locational effect of those other forces as well.
apparently
it is
The answer
is
that
if
how
it
has to be done
is
done
is
shown
in
we
39
40
forces.
rules
modify only
which
itself.
CHAPTER III
TRANSPORT ORIENTATION
(Transportorientierung)
SECTION
The problem
to be solved
is
how
be attracted?
It is clear that
it
To what places
will
be drawn to
having regard both for the place of consumption and the place of
quire:
The fundamental
factors
may readily
be defined in math-
ematically exact terms, they provide a definite basis for an abstract theory, leading possibly to
shall, at the outset, treat
mathematical formulas.
We
justified
because
we
are, of course,
are thinking
two kinds of 41
economy, and transportation costs as understood by the busiman paying for the shipment of goods. The former costs
ness
effecting
ment made
^
amount
of goods
price of transportation.
41
we speak
rate or the
ed, I, 76
ff.
The
42
of weight
transportation costs
Our
further discussion
is
all
contribute to the cost of transportation, limiting our consideration to an area with a uniform system of transportation. Because
of this possibility
we
What
this
it is
it
and the
the chief
means
of transportation
we
42 existing.^
The
shall
by
land.
proceed as
As a device
if it
distribuis
today
for simpli-
between carriers
amined
later
when our
reality.
goods themselves,
mine the
i.e.,
its
its
i )
The type
of
facility of transportation.
^The same analysis could be undertaken for any other rate structure and
any other system of transportation, but it is not necessary, because the principle is the same everywhere.
TRANSPORT ORIENTATION
Taking up the
first
point,
it
A given weight is
43
in cost as
among
of
its
use
when
carriages
So also the costs per ton-mile vary, even on the same road, according to the volume of
is
also
traffic.
it is
facts. It
of our present
all
Hues. Since, in
making
its rates,
should
exist, the
if
in fact
may be
higher rate; and similarly, lines with lower rates should be as-
sumed
is
For
lines
a one-
normal
on certain
Editor.
them a theory
of location
44
rates.
In
method
Germany
conditions do not,
of treatment.
density of
traffic,
nor to show
how
ments do
exist,
is this:
How
transportation merely
and distance?
No serious problem is raised by rates which decrease as the
distance increases. The same theoretical principle as before can
as a function of weight
be used here; the distance can be thought of as varying accord44 ing to the percentage of the decrease whenever such scales apply.
Geographical distances should not be measured by their geographical length, but in proportion to the decreasing rate scale.*
The problem
by the difference in rates between parand full carloads, is best solved by regarding
those charges which are made on full carloads as the normal tonmile rates. Then those goods which are charged higher rates
raised
cels, half-carloads,
if
not shipped in
* If,
full
and the
carloads
is
may
Germany, a
rate of
charged per unit of weight for 50 kilometers, 10 for the next 150,
and 9 for the next 100, and so on, a stretch of 100 is counted as=5o4- (SoII pfennig
50/11)
is
= 95.4 km.
We may
is
corrected
TRANSPORT ORIENTATION
tional "ideal" weight
amounting
45
may be
way
it
them without
fit
in rates.
thus to
and distance
all
difficulty into
variations in rates,
and 45
This
tance, the
justifies
In passing we
The second
upon which cost of transportation depends, aside from weight and distance, is the nature of the locality, influencing the road bed (see p. 42). On the one hand the
factor
it
may be
in question proportionally.
difficulty for
They
For instance,
rates in
Germany
and
we
later
moun-
mathematically
filled,
is
46
46
ported.
cost
goods necessitate great care, not only in loading, but also in carrying them. All such qualities result in higher rates per ton.
rates, which,
because of the high value of the goods, do not increase costs parIndeed, there exist systems of rate-making which,
ticularly.
however,
fact,
all
They do
scales exist.
Suffice
it
for us to
know
An
that such
increase in
47 the rate per ton-mile, no matter for what reason, means added
''ideal" weight, a decrease
that
is all.^
perfectly simple.
is
and
making
of
is
all
The only
ticularly F.
Costs.
may be
W.
Editor.
Taussig, op.
cit.; also J.
German
Clark,
In the
W.
system, value
of
and parOverhead
is
ff.,
this weight.
of
low value are shipped at lower rates than is usual. Thus certain parcels
low value are shipped at 8 pfennig instead of 11, and carloads of certain goods
small value at 4.5, 3.5, and 2.6 instead of 6 pfennig. Here again, subtractions
in
weight
ties of
of
may
instance, coal,
as
if it
had
which
is
shipped at
2.6
theoretical findings to
German
reality.
weight when
we come
may
for
be rated
to applying our
TRANSPORT ORIENTATION
47
all
rates
things
but are the predominant factors in the cost of transportaand hence of rate-making in any system, since they largely
determine
its
is
First,
tion,
it
transportation costs in
nature,
making.
how much
is
labor
is
An
abstraction based on
it
by the
it
exists in
roads use the ton-mile rate as the general basis, calculating rates
is
The whole
country, as has
regarded as a mathematically
flat
surface.
They employ merely "ideal" weight additions (Gewichtszuschlge) for half -carloads and parcels, as well as for bulky and
explosive goods; and on the other hand they employ ''weight reductions" (Gewichtsabzge) for the large and important classes
3f goods of low value. They employ special rates modifying the
jniform ton-mile rates only for certain sections, and, as menioned before, a restricted use
is
made
by our
ab-
dis-
both theory and practice for this simplifying asumption of the existence of a uniform system of transportation
ustification in
48
may
be taken for granted for the time being, for we shall show
later
SECTION
49
II
But how
That
In order to answer
whole theory
must be kept
it,
is
minimum
mind.
and we are
we proceed upon
produced
in
from
sumed
must be
of
which
(raw
materials.,
50 portation costs.
By no means
be those locatec
TRANSPORT ORIENTATION
49
mamore important (bearing in mind the cost of transporresulting from the whole process) than a position near the
terials is
tation
which
optimal. In
is
any
event, viewed
the
demand
is
necessary to
The
Cm
Fig. 3
Fig. 2
some
consumption of each
rial
Each product
deposits.
will
is
somehow
composed
deposits. In
of
to
be found in scattered
One comer
sented
by
triangles.
Dlace of consumption,
it is
50
tional figures
of
We
many
can presuppose
all
this
parts as the
because we
51 ating factors.
How is production oriented in terms of these locational figures? A general observation must be made before proceeding to
answer
this question.
The main
all
may
For
be.
may
it is
sufiicient in a
Then,
terms.
too, before
They
industry:
entirely
terials
employed
in industry
When
is
it
some ma-
when more
many
are, for
limited regions
TRANSPORT ORIENTATION
wood, grain,
etc.,
Such materials
in certain regions.
I
51
be called ''ubiquities"; in
will
nevertheless
it is
If the
Thus, water
is
"absolute" ubiquity in
many German
all territories
demand does
and
mean
which im-
that a
commod-
is
so extensively
consumpcommodity or op-
is
iportunities for
producing
it
is
there-
(praktischer ''Nherungsbegriff'') J
which
is
made
if
they are
We
reasons.
.substances
1
jbelong in
while
ocaHzed materials.
It is
obvious that
it is
'Regarding O. Englander's
Kiv, n. 31.
all
time whether
concept
cf.
above, p.
52
an industrial material
is
which
made
is
it is
reverse of a ubiquity;
all relatively
them or
for
any of
it is
a material
in
It is
demand
for
amount obtainable
at
Another distinction
may
its total
it.
Consequently we
etc.)
when used
terials, for
They
may
ma-
their use
of
"outside."
It
TRANSPORT ORIENTATION
53
its total
weight as
is
apparent that
very
it is
important for our theory to have covered these two distinct kinds
of materials with
The
materials used
by industry
54
purposes of the
and these
latter either
terials."
2.
MATHEMATICAL SOLUTION
I
under the
in-
points of
portational locations.
How
The
it
from which we
fact
may
lie,
start
is
fol-
uct
location
is
move
the
material
icall
respectively).
Along the
lines
let
us
54
a process of production which uses two locahzed materials, threefourths of a ton of the one
The
loca-
shows the weights three-fourths and one-half moving along the components of the two materials; while the component of consumption carries the weight one. (See Fig. 4, p.
tional figure
55.)
with ton-miles, the importance of every corner will be proportional to the ton-miles
it, i.e.,
the distance between the location and a given corner will be de-
its
locational
com-
The mathematician
(cf.
Mathematical Appendix
I,
2)
tells
Appendix
p. 229).
The
cf.
picture
threads on rollers, the threads being loaded with weights proportional to the weights of the components. In the inner part of the
figure these threads are connected at
some
point.
Wherever
this
is
dition prevails
figure.
may
otherwise,
it
will
if
if
one of the
TRANSPORT ORIENTATION
55
II
On
is
mechanically
figures will
always
Such weight
figures are
formed by
Fig. 5
length
is
same kind
line
fig-
of pro-
segments whose
Fig. 6
a triangle, and 56
as in the previous example the component weights are i=ai,
is
The
figure
which
5.
If it is impossible to
ments corresponding
one segment
is
form a
in length to the
component weights,
all
i.e., if
becomes
56
if
put together,
2.
If,
it
all
the rest
corner.
one weight
is
if
no
locational figure
is
is
becomes important.
as simple as a triangle,
simple construction
we can
(cf. for
57 dixl,4).
The
is
ners of the locational figure" can always be seen from the loca-
of the
corners.
ners,
The
is
lies
and certainly
far
how
There
lie
is
that the determining arcs intersect each other, not within, but
outside of, the locational figure (see Figs. 7 and 8). That occurs
either
when
with the third are small, and the determining arc therefore extends very high over them (Fig. 7), or when the third corner
near the connecting line of the other two comers (Fig. 8).
lies
comer, but
lies at this
corner as in the
I,
7).
TRANSPORT ORIENTATION
Three cases may be distinguished
if
57
is
a triangle
In the
first
than the
to or larger
always
tion
sum
lies at this
of the other
is
equal
loca-
corner.
sum
is
it
away,
too far
it is
is
the location. It
lies
Fig. 7
Fig. 8
Varignon
way
for determining
is
it.
We can, how-
this case
comes
of the third corner, but this instance will be disregarded for the present.
58
being pulled to any two corners, nevertheless the foregoing furnishes a basis for a general picture of where the location
lies in
What
as regards reality?
For
all
Do
lie.
59 will always remain the same. The material deposits will pull
with the weight of the material, the place of consumption with
the weight of the product, and the location will be determined
in the
discussed.
when
tlie
existing components (that of the one maand that of the place of consumption) coinciding
and thus connecting the two places. Along this straight hne the
a Hne
terial deposit
weight of the material will pull in the one direction, the weight
of the product in the other;
in weight of
the one over the other will determine where the location
the
line.
lies
upon
case the material has the larger weight, and at the place of con-
sumption
in case the
When
arises
if
any increase
what
will
line.
be the
re-
used weights of localized material results from the use of ubiquities, as was assumed previously. The ubiquities have no defi-
TRANSPORT ORIENTATION
nite deposits
59
figure;
they are,
seems at
first
locational figures;
however, that
may
upon the
is
is,
become
will
They
crease the weight of the product. In other words, they affect the
locational figure simply
of the
weight
add
to this
component
it
theory
all
60
fully covers
Evidently
uities.
their
variations of reality.
3.
So far as transportation
is
concerned,
we might
look upon
i.e.,
this
ber of tons of material which are required for one ton of product.
Or,
many
losses of material,
is
incorrect.
may be
6o
may
lie
in
relatively, the
sibly
The determining
factor
is
this
we
shall
ample, uses one ton of localized material plus half a ton of ubiquities for
to
in addition
in
we
all
oriented alike.
terial to the
industry, one
may say
movement within
the locational
The
weight to be moved. This total weight to be moved in a locational figure per unit of product
we
shall
from now on
minimum
it
call the
evident that
value
is
TRANSPORT ORIENTATION
ubiquities only
index: M.I.
We now
6i
tion
consump-
deposits.
tional
latter
is
is
all industries
whose material
lie
we can deduce
sum
of the
component weights of
uct, and therefore the material index which they create never is
more than one. We shall see the details below. Weight-losing
For
this to
may
happen, however,
it
is
CASES
us attempt to exhaust
all
possible combinations.
reality,
The
and
follow-
are to be considered:
calized
62
Ubiquities only.
1.
its
ubiquity:
tion.
one
One
{a)
occur. It
is
is
if
production occurs at
nothing at
all to
be trans-
ported, while
after
be no reason
why
of consumption.
2.
63
a)
If
is
shrinks to a ''line"; as mentioned before, the line from the deposit of the material to the place of consumption.
Along
it
pull
the weight of the material and the weight of the product in opposite directions.
is
equal to one,
its
entirety
The
location
or at one of
is
mobile;
its
material deposit.
If ubiquities are
b)
index
terial
posit
is
is less
smaller (just
by the
index
affected.
The ma-
is
is
again equal to
i.
index does not pull the weight of the product along one
but along as
single
many
is
Nc
TRANSPORT ORIENTATION
place of consumption; the latter
is
63
them
as large as all of
to-
may
by another Hne of
reasoning. The weights of all materials, whether in the form of
materials or in the form of product, have to be moved from their
of consumption. This
also be established
way
out
consumption.
way
by chance
meet for the
these
all
ways
will
one place
is
the necessary
first
product, the place of consumption will be the location. Therefore a productive enterprise using several
is
of
I
of
The
than i. The component
becomes
consumption
is
ponents together;
less
stronger.
That being
But
(a)
true,
it is
quite im- 64
One
one straight
line to
But
if
i.
The
is
material index
is
larger
is
by
com-
by the
this loss
at the deposit.
compon-
figure
larger,
of the place
all
b)
was
lin
to the place
still.
bound
is
this.
The
location
component remains
i.
64
As soon
I)
component
as the
in weight
(i.e.,
the location
moves
to the place of
of the place of
consumption exceeds
becomes less than
is
consumption. Therefore
size
of the ubiquities.
make
impossible a
The
general theorems
we have obtained
allow us to say:
. _p,
material index
is
i,
of pro-
mined
in the case of
location can
lie
deter-
is
at the place of
by chance within this arc; and that the location goes in every
instance (when two or more materials exist) entirely to one deposit, if the
is
equal to that of
power
its
what case
coal, for
weight
is
all
This
the
latter
it is
the case
when
all
TRANSPORT ORIENTATION
the material index
more
distinctly
65
Ms
Mo,
will
at-
is
greater.
cause the material index to become smaller, since the pure materials
be lessened. In
at the place of
can never be
tion is strengthened
by
ubiquities.
On
the contrary,
it
will al-
deposits of
it
pulls.^
This does not seem correct in view of what has gone just before.
To
be
of
Bi
losing materials ai
.
A2
Obviously,
if
Bi
and
ao',
and
bz.
would probably be at the point halfway between Ai and A2 if we assume tti and 02 to be of equal weight as well as of equal weight loss. But this
would mean that bi and 62 would have to be transported all the way back to that
ooint. Obviously, then, the place of production would lie somewhere upon the Hne
connecting C with the point halfway between Ax and A2. This point would be
-vhere the sum of the ton-miles of weight losses fli, 02 would be equal to the sum
luction,
)f
it
the ton-miles of
bi, bt.
Editor.
66
If, finally,
e)
ubiquities are
added
The
resulting from
As soon
by
the
know whether
posits or
and the
will increase.
is
all
If
at-
we
these
it
its
Accordmg
uses.
All this
to
is
which weight
is
thej
greater.
mathematical theory
to
affords us
means
in this case
not
lie
in
(a)
is
lies at
is
at
thej
materialj
way between
it is
(b)
wherj
when
liesj
TRANSPORT ORIENTATION
either at the deposit or at the place of
loss in
67
consumption, depending
the ubiquities.
All this follows
theory of
minimum points
which the
5.
Up to
this
time
we have
But
it is
fig-
is
number
Still, it is
A. First of
all.
How
an
entire industry?
Which are
the
They
t is
is
used
:he place of
production
lies at
if
is
employed
either alone or in
lie at
the
facilitate
And
final-
67
68
if
weight-losing material
combined with
is
in other
such material. As
we know,
may
be
sumption.
may serve
as an example
The
GM
following
the deposit
is
;pRMi
GM
Two
tion,
68 loss in weight.
is
RM^,
GM,
will
RMo,
the deposit
GM,
to
RM^
if
thd
wouldi
this trip is
saved
if
RM2
is
used.
deter-i
TRANSPORT ORIENTATION
mines whether a given deposit
tional figures
is
The
thus resulting.
will
69
figure
that reason
is
applicable.
Thus the
at all the
one of
its
upon
is
possibly not
lie in
if
and
will in
modern
will
figure.
In those
and not
whether par-
To
in
but this having been taken into account, the locational figures
are
Such
figures therefore
have a narrow
base at the coal deposits and a long point extending to the places
of
70
material
offered
In Fig. 52 ^1
is
A2
(which
is
assumed
mined deposit
to
the deposit of
is
The
is
definite, A-^
still
undeter-
portation costs, which are drawn for the location figures arising
sev-
eral deposits of the second material will actually be used for the
whose
use entails the smallest transportation costs. This will be the deposit within the lowest lines of transportation costs as
drawn
in
Fig. 52.
B.
entire industry
should be mentioned
a)
It is
it
can and
will
figures
sumption
in
lies
the two figures have equal transportation costs indices. This results in equality of competition
of
the places of production of both figures. This might be the outgrov/th of natural conditions
propriate
tariff
but
it
and more important still, it can and will happen that the normal output of the material deposits of the most
favorable locational figures may not be sufficient to supply tho
indices. Secondly,
70
demand
locational figures appertaining to the use of other material deposits will of course be brought into play.
ters of
As a
will
TRANSPORT ORIENTATION
often be supplied
by a multitude
71
of places of production
which
These places
dices.
life
will,
new
locational figures
sent.
As a
new
places of production.
is
which
may
be
it
may
Fig. II
be greater, very
much
greater.
deposit
is
'
The
will
result
first
is
all
ma-
place of consumption,
it
gives
Such
That
masses.
all
If
dominate
become
whose products are distributed in all
vidual plant.
Of
course, this
is
how
stated abstractly.
The
factors,
72
tion of
determining
71
6.
is
concerned,
is
The
fact should be
emphasized that
is
this factor;
and
this fac-
see later
how
We
shall
is
determined:
first,
by further
ori-
amount
may
to nothing.
The
new
may
tion,
all in
it
thereby bring
all
it
dis-
places thereby neither the location within these figures nor the
interacting conditions of their formation.
Paradoxically, the
is
costs.
TRANSPORT ORIENTATION
73
In
tors.
industry (which
One
is
the size of
Every increase
is
and vice
it,
versa.
And
it is
these are the 07tly two things which are able to increase or de-
it
and thus
settle the
is more attracted toward materials or toward consumption. In any given industrial process it is the pro-
whether an industry
to the ques-
What
opment
TENDENCIES OF DEVELOPMENT
of transport orientation?
change in
it,
How
result?
This
is
the situation:
In
In the
first
place, the
development
will, as it
demand
concentrates
amount
of ubiquities.
ties will
74
be
will
in
such demand at
many
demand
will ex-
ceed the local output. In both instances this will eliminate the
ubiquities
stance entirely, and in the second instance for that part of the
production whose
And
demand can no
sume ever
greater proportions.
as-
(i.e.,
anywhere becomes in fact a manufacturing of materials which must be obtained from other places,
(i.e., localized materials). This means that the development, in
technically) be producible
so far as
it
continuously di-
one
is
development.
it
signifies
amount
an
of the
One could
describe
for use
rials,
etc.,
which can be
For the processes which yield the new materials are ordinarily burning processes, and therefore, as a result of the use of
tion.
TRANSPORT ORIENTATION
75
new
will
more
more such
losses in weight
thermore, the control of nature leads quite generally to "mechanization" of production. Since this involves the use of fuel
terial, it results in
ma-
The development
in weight.
losses in production,
and therefore
it
many
tremen-
dously strengthens the material components in addition to weakening the components of the place of consumption
by
displacing
the ubiquities.
74
from the places of consumption toward the material deAnd in fact this view of the general development enables
posits.
revolution which
The
century.
the nineteenth
vailed
up
so far as
it
is
Of course the
crafts
them
strong.
It is certain that
dif-
the
76
SECTION
III
APPROXIMATIONS TO REALITY
Let US now, for the completion of our theory, leave the abwhich we have been working up to this time and
stractions with
upon
of our
fig-
The second
first
one in
all
order to
fit
we have
fori
of transportation. Thisi
our discus-
mean
that in
to consider, first,
the
inter-j
We have already
ff.)
how
the
and mileage may nevertheless be expressed in terms of these two elements, weight and*
mileage. We saw that deviations which increase or decrease thet
mileage rate (that is, deviations which produce increased or deculation of rates according to weight
lines,
or cer-
subtractions of mileage.
We also
are
is,
TRANSPORT ORIENTATION
77
figures,
How
does 76
influence the
it
a)
cording to mileage.
if
shortened in mileage by
by means of a decreasing
scale,
it
material deposits
may be
of
consump-
may seem
a similar situation
and con-
En
Df
ly
places of production
ever,
how-
iccordance with the rules previously indicated. Expressed diferently, the theoretical position of the location in relation to the
naterial deposits
'"
Cf
p.
46
f.,
above.
will
not be
78
changed at all; only the locational figures within which the location is determined will be changed. Looking at the map, one will
perhaps be surprised that
77 culations.
b)
to weight.
If
more
or less than
its real
its
weight;
real weight
it
the^
attracts
would enable'
all
uct,
tracted in the direction of those corners which have a proportionally increased force.
If,
for
and
if
is
materials used in
bulky, such
its
as:
manufacture!
the|
German
rates.
The
attracting
It
the^
mayl
come
to
lie
of consumption, will
lie
is
is
in effect onei
il
TRANSPORT ORIENTATION
79
its
We
find a corresponding,
though reverse,
effect
when
rates
Such refrom
the
subtractions
duced rates
will
weight of materials, while they leave the products untouched except for occasional small reductions; for the products have a 78
Reduced
rates
on goods of
mean reduced
attract-
ample, in
Germany almost
all
If,
for ex-
much
as 60 per cent,
and coal
it
surely
the material
shifted.
reduced correspondingly.
ures
we can then
When we
calculate exactly
is
fig-
Whatever
by
in the
United States
is
is
similar.
to
be noted, however,
Editor.
So
that this
is
not take place, since such special rates will always affect
de-
all
posits of the
age.
tive
first
case
now under
79 tions.
The
as weight additions.
They do
may
theoretically be expressed
whenever shipped
create no factors which can be-
calculated precisely
tion, since
normal rates
to
The
become
have
effective,
is
and whether
necessary
transpor-
which an
and
al)
casfj
tortious for the present, for every locational figure has obviouslj
determined by the
it,
which capacitj
consumption. In one
lo-
er than in the other; but this will influence neither the figures
TRANSPORT ORIENTATION
8i
themselves nor the position of the location within them. Accordingly this modification of the pure calculation according to
may
weight
8o
ations/^
2.
assumed the system of transportation to be uniform for the whole territory considered. This does
not need to be the case; any existing system may be divided into
independent parts. The theory has also assumed the system of
far
is
theory to reality
A.
few words
the transportation
by the various
important for
parts
transportation costs)
it
its
Arhich
industry orients
itself.
The
combined
is
when
amount
of commodities
ocational figures
ng
may
is it
(with
'^
If
carloads
laces of
Dre at
higher rates. This condition will have the same effect as an "addition in
and therefore it means a strengthening of the compoIt would perforce have in itself the tendency to
lift the combined location toward the places of consumption
if not, other shiftigs would take place in the case of such combined locations
all of which makes
eight" to the products,
ents of places of
consumption.
i34ff.).
this
(cf. injra,
82
so will depend
would be expedient to do so, for example, when very many additions and subtractions from the normal rates are made in the different regions. In this case a considerably different "theoretical"
distinction of the locations
and
would be
it
would prevail
in
them independ-
ently.
On
we may
only
To do
and expedient
some unimportant goods vary-
so will be possible
rates of
and
wealth,
German
try
is
this fact
makes
it
exists, for
example,
German Common-
concerned.
B.
When
different kinds of transportation systems work tomore complicated problems seem to confront us. Bui
they only seem to do so. If we consider the situation as it is today the problems may be solved.
gether,
If
may
we look
it
thisi
This net has been created in order to connect these centers witij
one another. It connects them, however, not by straight lines
but by lines having
many
by
thc(
diagram.
The
may
be somewha
actual transportatioi
it
may
be
pos^
TRANSPORT ORIENTATION
sible to suggest,
and even
83
improvements
figures.
lines
and the
latter
is
self-evident.
Fig. 13
which
may
in fact
Among
is
im-
the lo- 82
As
is
may
be considered. One of
away from
it,
although lying
position in relation
of consumption
is
con-
we
shall
cerned.
Having
)roceed to examine
v^ork together.
how
"deforming"
effect of reality,
84
many something like half the lowest railway rates, or about 0.25
cents per ton-mile? Let us reflect how waterways and railways
are related today geographically. Ever3rwhere we find an extremely dense railway net spanning the entire country, and winding through this net like ribbons, some natural or artificial wa-
terways. These
they
may be
may
But even
ori
in the case of a;
network they form a skeleton of such irregularity that they cannot open up all material deposits of the country, and even less;
can they supply
all its
As
places of consumption.
transportation!
all
tra-
material de-
and therefore
actually carries the orientation of industry. Along the railways
the largest part of the places of production and of the materia!
posits
^2>
all
places of consumption,
The railway
net contaimi
locational figure!
tunities;
they
portation,
rates.
Thus they
are theoretical!)
and consequently
distanceii
thfj
ened routes
will
whicl-
TRANSPORT ORIENTATION
cannot use them.
posits will
The sphere
8S
will
be eliminated; and
of existing
it is
we know
not
the rates
difficult to
and
put
to determine
We
can
Me
Fig. 14
make
Fig. 15
in Figures
14
and 15.
Case I
of
locational figure
The
tion
deposit
and
M2
of the location
is
(compare
Fig. 14).
M\.
If
no waterway
would be formed
waterway may, however, cause the distance separating M'2 from C to become ecolomically shorter than the distance separating M2 from C. In 84
hat case the locational triangle using M\ and the place of proiuction P' will come into effect.
supply of C.
The
existence of the
86
Case
ing;
rial
it is
is
deposits
is
remains the same, and only a displacement of the place of production takes place. Figure 15 will illustrate this smaller
but the
also
terway.
this
effect.
Here
The
Mo
fore
will not
MxM'o
C. There-
it
employed
will
if
and not
which
in P,
is
if
merely
These remarks
effect of the
will suffice to
make
lessi
why
thai
little jolt
their
by land.
b) The effect of
portation
It is well
known
thai
As a
on the high^
ways over long distances has ceased. Today highways are used
only for transporting goods to and from the railway stations^
Consequently highways no longer have any independent loca" These sentences were written before the advent of the
dent of this treatise will find
if
it
possible to
work out
Editor.
it
TRANSPORT ORIENTATION
tional signficance at all; their function
is
we wish
we had
87
We can disregard
for the
moment how
is
is
grouped
distribution
which
it is
will
or-
industry
traffic fac-
be treated
in
how
is
in
railway
its
the district
then not the price at the deposit, but the price at the railway station,
of the materials
obviously
it is
For
The
is
may be,
of course,
same
all
need
same
place,
However,
for the local orientation within the railway station unit, with its
same
Everything
will
its
88
3.
It
by the
materials caused
first,
and the railway stations; and second, the effect of water power
87 upon the process of production. We had said that price differences of the materials (which price differences ordinarily would
be an independent regional factor of orientation) may be expressed theoretically as differences of transportation costs of the
materials,
fuel;
material,
Some very
important peculiarities appear, however, when water power enters in. Also the
rials
way
in
which differences
may be expressed as
in
affect orientation,
A.
It
we have already
we
shall
need further
employ the
lo-
discovered.
may
due
to dif-
water).
We
upon the
by
rail
and we
or by
be used
shall calculate
Price differences themselves never change the location within the locational figure fundamentally;
competitive conditions
among
TRANSPORT ORIENTATION
89
in other respects.
way
as the 88
earlier.
of
power
for
through electrical transmission. Both cases, as former discussions have already shown, are to be treated theoretically as fuel deposits with definite, and on the whole with lower,
indirectly,
prices.
The horse-power which they produce may easily be caland we may then com-
of ''black" coal
There
exist,
which
it
its
these calculated
to
simple.
is
effect of
be considered
exhaustively.
a)
vantage, or
it
lutely
remains where
untouched by
it is,
and
this locational
in that event
advantage.
it is
When
abso-
does the
one thing take place, and when the other? If nowadays the
cations remain
untouched by
this locational
advantage
it
ed coal deposits.
and
shall consider
We know
them
and the
most advantageously
locat-
as normal.
lo-
means,
The
90
which
may be
But
this
tain deposits of
new
means
theoretically
is
new
What
compared with simply eliminating cercoal by using cheaper or otherwise more advan-
89 tageous deposits)
is
(as
cases in which the location in the old figures was not at the
new power
it
will
be forced to go to the
From
this
it
which power
is
this
tage.
For the
effect of waterfalls
is les-
portation costs.
The
its
falls will
be
less
which
than
will
if this
Its influ-
When
will the
whenever the cost of power saved is greater than the cost of increased transportation. We shall have to compare, therefore, the
relation between the cost of power at its location and the cost of
coal at its deposit with the relation between the index of transportation costs of the old and that of the
sum
power and
new
location.
If the
of transportation to the
TRANSPORT ORIENTATION
water power location
is
sum
91
and
power is
of costs of coal
To
90
(waterfall)
is
the
new
M^MoC
is
M2WC
M2
former sum
is
(a, b, c).
W supersedes P, other-
water power
is
firmed within the narrow limits which are set by the relationships of cost just discussed. Unless the distances involved are
small, the influence of waterfalls will operate
cause in this case the location does not have to shift within the
figure.^^
b)
producing
amount
First,
we
shall as before
amount of coal
be compared with the price
power location)
this calculated
to
is
it
92
deposit.
definite,
we
price. Second,
H.P. used as
whole,
theoretically the
amount
if it
of coal.
we
were
On
the
water-power, for
it
theoretically repre-
water power
cause
will, in
be trans-
price of such
its
may
its
geographical location
may
They
the places consumption and the other matedeposits much further than would have been the case
tional corners
of
in
rial
As
in the cases
we find
i )
the use of water power; and (2) a transfer of the location takes
The
not shifting
TRANSPORT ORIENTATION
93
ter
minimum
costs of
and there-
tum
it is
extended
of transportation
We
shall
cated at
but in the
new
locational figure
MJVC,
and
will
be nearer
M^
94
and C than the former location P, based upon coal in the figure
Mil/oC. Its position within the new figure is determined by the
laws which we now know so well from the previous discussions.
The weight which has to be applied on the component WP' ob-<
viously is the difference between the weight of the "theoretical"
coal (water power calculated in terms of coal) which is brought
from
and the weight deduction which has to be made along
this line
to determine
is
possible
and
M.
should!
''theoretical
with the
tion
93
sum
P and
If the first
ample
is
to
be compared
sum is
smaller, P'
is
M2)
is
its effect
obvious.
The
possi-
We may
all
well sa>|
modifica
CHAPTER IV
LABOR ORIENTATION
SECTION
we
de-
man
production.
salaries
ess,
of course, that
cause
it is
human
labor
is
obvious,
is
capitalistic
economy
we
of today the
are
now
wages and
And
since
which are
salaries
we always
deal with
we
for only
our further
shall in
for
:al
discussion.
we
are
in location
self-evident.
still
But
it is
by
im-
)roblem. This
ler
is
if
in
some man- 95
96
The
ographical relationship.
differ,
may
wages of
sets
and of
subjective reasons; and (2)
of causes:
labor,
i.e.,
for
more or
less
cal
more
is
set to
However, only lo
differences resulting from subjective reasons have the req
work,
for
i.e.,
uisite
''fixed."
They
are
geographically
shows
different levels of
parts.
On
in its various
ac-
apparatus
itself.
These
latter differences
is
is
may become
to
be taken up
i1
factpi
later
ir
moment they an
We
we
What
wages and
costs
is
efficiency
differences of laboi;
it
this
may
LABOR ORIENTATION
theory which
97
is
And
for that
differ-
exist
is
a matter
sibility,"
^'pos-
bihty.
in the
We
must know
by the
costs, as determined
in
different levels of
that one
may
to place," so that
may
be treated
cal
"point."
If in this
connection
without prejudice,
we
we must make
We
will at
The higher general level of wages in westand southern Germany as compared with that of the eastern
according to districts.
ern
Dart
may
occur to us as an example.
niliar tables of
We may
wage
we may remember
that, with
a staircase" from
98
97
cities.
If
wage
we think
'Vage rate"
will
is
one of
many statistical
simplifications
As evidence
Union
itors,
by one
of the largest
movers,
of Trade, Transport,
The
etc.).
the Union
riations:
15.7;
furniture
Germany where
is
jan-
(i.e.,
The<
cities.
its
sef
country
itself.
The
is
only
th(i
it is
0:
LABOR ORIENTATION
wage
level
99
may
work
in
range of
or about
39
nitz,
30 per cent;
a range
in Bunzlau, 31
Hirschberg, 42
Schweid-
week
Sangerhausen,
Naumburg,
18.7
in
mark:
16.7;
in
Schkeudnitz, 21;
differences of 9.8
between the Goldene Aue and Elster-Saale. Similar differences appear elsewhere. The Thurin^ian Forest shows the following figures: Koburg, 14.7; Weimar,
21;
3.3
per week.
All these are local differences in the small towns
and
in the
'arming country;
if
lOur of
Lorbetha with
12
or Kalbe with
1 1 .2
much more
or skilled labor,
100
consideration
Now
it is
well
known
that differences of
wage
do not
level
99 of
The
parallelism between
efficiency.
them
is
disturbed by differences
difference in
effi-
exist at the
together
may
known
is
efficiency go
The
latter
wage
differences
would be
reflected as less
and
valleys; or
it
empiri-
mountainous
mean a complete
of
differ-
smoothw
that, sc<
that places with high wages would be places of low labor costs
tion.
At
it
will
time
it is
may
in fact often
more or
for indus-(|
be the
situa^<
whether th
oi
thi:
it
will
>
LABOR ORIENTATION
loi
We
theory of location.
of course, not to be
is
altered
in de-
disre-
gard these things and imagine the cost levels of the locations to
we analyze
clearly
and
to its
consequences the
effect
tracting
can
we
is
to say, only
clearly trace
which power
from
as freed
if
we
its effect
conceive
upon
is
all limits
it
based upon
but those of
as actually unlimited,
location.
And it
is
necessary,
We
shall leave
it
ment within which these abstract laws work out, the significant
elements of the actual environment being variability of the differences,
among
what
com-
petition
industries for
is
at
loo
102
SECTION
II
How
tion of industry
by means
of
its
levels?
I.
sumption.
from
The
its
point of
minimum
its
place of con-
it
have
of the
for de-
it
costs?
The
following
is
at
any
rate clear:
of
essentially not
itself.
of such a cent
proach to the location with the lower labor costs would have
would be of use
to
it;
hence there
at the point of
minimum
is
n(
itself
transportation costs or be
moved
to the
labor location.
it
will industry
be moved to the
la-
not?
Isodapane
is
new
by Alfred Weber. It is
Similar words are^
"equal," the
"expense," "cost."
Editor.
LABOR ORIENTATION
103
and
it
causes
by savings
pensated,
if
is
of labor costs.
location can be
which
fa-
if
this
al costs of
moved
more
costs" to a
transportation which
it
involves. It
necessary to un-
is
its
con-
sequences.
To
bring
understand precisely
it
its
theoretical significance
we must
we have hitherto
concepts which
this task are
provided by what
used.
is
cost.
The
discus-
the transportational
ferent directions
for
and that
any direction
in
in
which
it
may
go
must
'
some
terials.
From
this
it
follows 102
may
minimum
point
ma-
transportational
minimum
(of
This point
is
minimum
point.
Editor.
104
location,
how
indicates
minimum
figure.
This isodapane
question in such a
costs
which
it
indicates
minimum
point.
Hence
it is
apparent that,
if
costs at the
it lies
its
omy
than
attract,
lies
it
location
it
it
ca7inot
if it
economy
is
attracting
pane.
To
power
With regard
is
to the
isodapane
The
whether
it lies
inside or outside of
it
de-
termines whether or not such a location will attract the production of the locational figure concerned.
The
labor location
(its ability to
"transport orientation") into the realm of precisely determinable laws, the conditions of which have for the individual case
been sufficiently
clarified
by the foregoing.
LABOR ORIENTATION
2.
It
105
deviation and labor orientation can and will occur, and thus to
uniformly to
conditions"?
all industries
We
in other
and the
'^locational
labor orientation
is
essentially
conditions."
Let us
first
fol-
minimum points
economy
of the 104
The geographical
and labor
lo-
cations evidently has nothing to do directly with the general character of the various industries.
fact in the situation,
It is
a seemingly "accidental"
We shall, however, later put this fact into its general context
and take it out of the sphere of the individual and accidental in
which it seems to stand.
around the minimum points of
the locational figures depends upon two subordinate factors.
The course
One
is
namely,
of the isodapanes
io6
on
it.
The
discuss
figures of the
more
in detail)
how
shall presently
industries
3.
we
shall
have
marks per
5, 10,
20 per
economy depends first upon this percentage of ''compression." But that is only one factor. How
great the total absolute economy per ton will be depends also, it
is obvious, upon the absolute level of labor costs which are com105 pressed. If these costs amount to M. 1,000 per ton, a compression of 10 per cent will cause an index of economy for this
labor location of M.ioo per ton; but if they amount to only
M.io, the index will be M.i. This absolute amount of labor
cent, etc., the index of
which
is
in
is
based (and
evi-
must be applied
LABOR ORIENTATION
tion the labor costs accruing per ton of
107
The
is
not a
location.^
There are thus two general characteristics of industries determining their labor orientation:
labor costs.
And
their
and labor
i )
locations, (2
Let us take up
to
first
we have
said
dustries, that
is,
let
in-
of labor costs
106
I.
labor costs
economy
ical
isodapanes; therefore
ing
This
is
we
crit-
locations.
And
vice versa:
low index
same industry.
io8
pression, etc.
That
is
power
of
of labor costs
to
The index
alone decides
all
is
those in which the labor costs are so low that they are insuf-
ficient to
tries are
grouped by
this
The
other indus-
The
dustry
may
be deviated through
its effect
manner
first
isodapanes, the
them is
mass of material per ton
in
to a large extent.
And
vice versa.
The
may
be deviat
it
To
it
af
by the index
of laboi!
LABOR ORIENTATION
minimum
point
directions.
is
109
So far as we can
set
up a general
rule,
all different
only industries
which have components of equal strength determining their location (and hence having a centrally situated location) have a
tolerably equal tendency to deviate their location from the mini-
mum
point in
all
directions
strength,
minimum
the isodapanes).
stronger
in
its
components
it), will
more
easily deviate
are, the
more
it
will
do
so.
Expressed
little
localized material
and hence
of
will
medium index
ticularly if
Dr less
Industries,
it is
evenly in
also evenly
composed (1:1),
will deviate
more
all directions.
is
It is of
circle,
\nd
whatever the
this is quite to
size
from the material index becomes a matter of indiffernce for great distances, for which the locational figure approxilates more and more a "point." The deviation represents more
nd more transportation back and forth on the same line, and
esulting
pll therefore
^rial
be equally expensive in
all directions.
gives to
no
effect
its
upon the
distance,
becomes
by thus
in-
But
is,
And
as the figures
show, none too great even for the short distances (for the isoda-
circles),
it is
its
significance
allowed to proceed as
if all
is
be^
The
by the index
measured by weigh
of labor costs so far)
amount
oi||
of laboK
we
shall call
it,
Indeed,
(i.e.,
it is
if
|j
LABOR ORIENTATION
may be
moved
disregarded,
if
a deviation
therefore,
is
it is
is
11
to take place.
But
if
and
if
tional
weight and
its
its
deviations
by the
loca-
may be
amount of
made
its
deviation.
The concept
(i-^-?
M.ioo labor
It will
be useful, how-
comparable
locational weight
how much
basis.
We shall
therefore reduce
it
on a
so that the
shall
ask
locational weight to be
moved.
We
shall
its
is
it
de-
determined by their
labor coefficient.
To
few examples.
3f
The manufacture
theorem we
shall give a
loca-
product
109
112
tional ton. If
we assume a
no
no
pottery industry,
The
and immensely
entire
B.
We have
is
different
manner
of orientation of
is
not
difficult
should,
It is quite
first,
consider
a given industry
coefficient
and of
its
compressi-
may
how
minimum
points of the
by the
remember
We
And we
should, second,
parthat(
by
For
may
if the
mean an
Some
i1
over large
variom
same industry will compress the labor costs more, and therefore'
some will exert a stronger attraction than others. Those whidl.
which attract with the larger percent!,
attract more strongly
age of
compression
will
effective
(depend
LABOR ORIENTATION
ing on the character of the industry) they will
to themselves
from
from
all sides,
all sides.
113
draw production
The
and
this
will deviate.
many
locations.
1 1
we
in-
As a
number
is
is.
clear,
we have
detail as
labor coefficient
its
the orientation of
just done.
We
could
an entire industry
if
now
still
one
in the attracting
power of the
'centration.
shown on
attracted
p. 115.
The
is
shown graphically
is
concentrated
in the Figure 18
it
is
needs
from
Mx
nd M\, and the second from M2 and M'2, and if the industries
f more than two locational figures were attracted, it would draw
from as
Dresent,
igures
many
had
its
own
material deposits. It
is
clear,
however, that
114
is
is
most
And
it is
it
terial deposits;
we can
and
it
markets
its
it
The
closing
down
of
goods
"all
(as
oj
raw material.
raw material deposits which is the charphenomenon takes place for the pur
whose industry
diverted
is
no longer
i:
th<
s(
contrasted to the
full
deviation costs of
Mi Mo C
or
M'l
is
M\ C:\
concernec
by the transportatioi
costs saved by substituting M'l for Mi and so far as the devn
tion of the second triangle is concerned, by the economy whicli
the substitution of M2 for M'2 offers. These economies of transj
these deviation costs are to be lessened
;
Now
in order to
th'
on next page.
make
this
LABOR ORIENTATION
115
way
We may
around.
say: to the
labor
power
tional figure
we
have to
shall
any given
loca-
make
ment of material
Only
deposits.
in this
manner
shall
we
gain a
M',
Mi
Ml
Fig. 19
upon each individual locational figure, and seccompound effect upon all locational figures which fall
circle of influence. And only thus do we gain a correct 113
ond, in its
vithin its
md
of the magnitude
and form of
its
ocations.
It
)lay
by such a
Veil as
up of new deposits, as
may have essential
tidustry. It is
^y
obvious that
may
to light
ally
may
ii6
lie
making use
The
of favorably situated
new
labor location
by
Figure
away from
is
the
of course
to bring
will
economy
we have
is
their index
0^
amount
of devia
thi
The
upon
its
The
is,
and
it,
precisely
how
bor location in comparison with that of another will be affected by this poss
biUty of replacement.
tionate
amount
is
to be
added to
its
index of economy.
propo:j
LABOR ORIENTATION
rise of
We may
line.
by saying
strongly agglomerated.
4.
Two
quite accidental
and
rule:
locations,
This appearance
may
will
each location.
From
that,
however,
it
tional figures
figures
tervals
with their
( i )
mean
will
be
large.
On
the other
between the labor locations, (3) the distance between the locaand the labor locations. Editor.
2) the distance
ional figures
popu-
ii8
and hence that a short average distance between locational figures and labor locations will prevail. The ranges of
deviation to be overcome will thus vary according to the density
location,
of population.
mean
fore
sult.
An
more and more favorable conditions for deviation will reThat is the general rule to which this seemingly accidental
to general validity
we may
The
efficiency of
and
The
like-
differences of labor
com-
is
That
is
the
subjected.
may
therefore
whereas
in
facilities,!
the
labor
LABOR ORIENTATION
As a
much
tions
farther
away
119
result, labor loca-
or in other
by
body of
diverted industries
labor locations
locations.
condition
That
is
is
subjected.
We may
how
of production
j
this decline
to changes
Now we may
say that
way
rates
began
of practical significance
to decline rapidly.
we
But
shall
show
at this time
to
what
in-
we may ask
etc.,
tion.
Editor.
120
their
We
change
5.
by
facili-
differentiation of culture.
On
diminish the costs of transportation change, pari passu, the general character of the industries
of
its
factors, the
amount
of labor
used and the amount of material used per ton of product. Ob-
it
increases the
of coal
make
integration,
it
we wish by means
whole meaning of
this
into
of our theory
tendency toward!
is
a consequence of the
pushing the
ly
critical
1.
close- 1.
possi-
LABOR ORIENTATION
bility of deviation. If
we
121
we
can see that the integrating tendency which results from the mechanization of the process of production must be very strong.
Whether
it
will
11
lie in
material used)
and
may
be set
in relation to
known
of
amount
of
by means
of
more or
less well-
facts.
it
be worth
will
An increase in
the
amount
the use of
in
means increase
in the
draw
each
other.
we may
after all
say something about the total effect of the integrating and disintegrating tendencies during the second half of the nineteenth
century.
The
by
(however greatly
it
may have
122
been necessary
in
all
industries to a significant
119 extent.
From
was bound
to
happen
we
in all sections of
get a picture of
now
in
may
power of attraction.
That the widening of the isodapanes is impeded in those
industries which are being mechanized leads us to the followand
ing considerations: In so far as such widening occurred
as we have seen, that was predominantly the case a loosening
of industries and a strengthening of the labor orientation must
have taken place. Since, now, a decrease in the indices of economy of the labor locations means a pushing of the critical isodapanes toward the minimum points, we get the following picture
applicable to the development of the mechanized parts of industry: the isodapanes are pushed apart (widened) and at the
same time the critical isodapanes are pushed back farther toward the inside of the concentric rings formed by the widening
isodapanes. Only in the cases in which, as a result of both these
movements, the pushed-back critical isodapane was farther
from the minimal point than it was prior to the mechanization
and decrease in transportation costs has there been any loosening up. It is part of the empirical study to show whether that
LABOR ORIENTATION
was
123
and whether
thest,
reahty
it is
now
labor-oriented
to
we have
and
to
is
concerned.
To
determine, on the
will
is
be seen
rial.
best
It will
means
appeal to
abihty of
cient, is
is
one of the
to ascertain in reality. It
difficult
any industry
121
CHAPTER V
AGGLOMERATION
Costs of transportation and costs of labor are the only two
factors in location
factors.
is
to introduces
SECTION
I
I
The
first
is
to show-
and deglomerative
factors as
by
ij
theii
them
if
that
is
as independent factors
For the theory is not concerned with the dynamic interaction of operative tendencies toward agglomeratio:
and resultant contrary tendencies toward deglomeration, bui
agglomeration.
rather with the final effect of this process, since only this
finaii
However,
may
may mean
that there
is
we have already
is
nc
gained),
t(
factor
AGGLOMERATION
which
of agglomeration as one
may
125
agglomerations
which are
it
each factor.
and
facts of
now to be
The groups
of
tinguished
ing
social factors of
2
priori
concentration
it is
We have
know within
!?lomerative tendencies,
it is
by
which we
of general theory
is
industries.
here of necessity
much
123
126
theory can have only the task of finding quite general rules concerning the manner and extent of the effect of the agglomerative
tendencies upon location;
it
must
rely
upon empiricism
to dis-
It
is,
in
Ac-
known to work in an agglomerative or deglomerative manAs the discussion proceeds, it will become clear that it is
possible to make at least a beginning of a preliminary grouping
tors
ner.
of industries,
and
this as
An
DEFINITIONS
place). In the
and deglomerative
tive
factors
must always
the
amount of concentration.
of
become
of
We
AGGLOMERATION
or
more
127
economy
of
will
Appendix
The
of
III, 2).
economy. If,
from a particular definite
economy
of agglomeration. It
is
must be taken
For the
into account.
3.
we shall need to
and deglomerative
analyze
factors.
A. Agglomerative factors,
md
lower stage
is
The
first
he simple enlargement of plant. Every large plant with a rounded out organization represents necessarily
a local concentration
agglomeration.
certain
minimum
of
128
question.
The
minimum
coefficient of
economy
industry in
is
also the
goes.
2.
Whether an industry
will
this
whether
it
will
to concentration,
sulting
from close
let it
be noted that
thej
vantages of the large plant, and hence that the factors of agglomeration which create this higher stage of social agglomeratioi
will
we
agaii
ganization as a whole.
oi
or^j
not able to
make
full
utilize
||
special-j
11
AGGLOMERATION
ized machines
their
129
own
parts of the
must work
i.e.,
they work, and hence need not lead to local concentration of the
j
main
nical
plants. As a matter of fact, however, they form one techwhole with the main plants for which they work. And this
if its
mutually depend-
ent parts are locally concentrated, because then all the parts re-
main "in touch" with one another. The development of such specialized machines and of the auxiliary machines belonging to
them establishes therefore a technical minimum of agglomeration, and this technical minimum, as soon as it leads to a social
previously considered. It
tion.
And a
lis
exerted
by a second
factor
same
result)
for re-
certain sense
its
"physician."
The
in
which are
)lants
:.ible
jThe
is
to
be worked
for,
"country practice,"
is
pos-
Development
fully devel-
)ped, differentiated,
Q
130
Hence they
also tend
just as in
based on
Marketing
creating a
factors.
The
situation
The
plant
sell
is
more
effective
on a large
plants gain
still
it
^will
those
also be found
isolated large-scale
it
middlemen. Being a
safer investment,
is
this.
group of factors
last
It
credit.
Grouped
large-scale
its
own market
demand. The
isolated en-
terprise,
market
is
and
direct
energy
is
saved.
and
othej
it
should be pointed om
which
plaj
AGGLOMERATION
a part at the lower level of agglomeration
large as
I
gas,
131
(i.e.,
water mains,
come cheaper
streets, the
this stage;
will be-
technical development
and
effective utilization
made
possible
To summarize,
128
an index of the
size of the plant (be it low or high depending upon the condition
of technique, organization, etc., attained at any time) which tells
us
what unit
if
is
its
tend-
same
they
certainly frequently do
social concentrations.
it
may suffice
as a
B. Deglomerative factors.
eration
may
increased
expenses.
The balance between the active factors and these opposing tendencies gives
;iven case.
result
from the
etc.,
nothing to
132
by speculative manoeuvers. All deglomerative tendfrom the increase in economic rent (ground rent).
can describe them all as various consequences of economic
ginal utility
encies start
We
rent.
This
all
is
still
less is
it
the place to
dis-
cuss the kinds and extent of the effects of the various increasec
expenses of production.
We
situation theoretically.
been
said,
we have only
th(
If w<
ai
it
efficient
organization will b
new
factors
el
fects will
From
first,
that
factors,
tors
we may
even
in detail, as
fac
certain circum
entirely avoide
AGGLOMERATION
133
more con-
agglomeration
selves)
is
glomeration.
even
if
(created
by the agglomerative
size as
factors
such
them-
of the ag-
the agglomeration
is
economy resulting from agglomeration is always in part determined by the extent of the deglomerative tendencies which are
it the same time called into being, that there can exist theoret'cally ''pure" indices of economy in the case of a single agglomerated industry, provided it is agglomerated in isolation. But if 130
)ther industries are added, the resultant weakening of the agglomerative factors and therefore the size of the indices of econ-
omy
will in part
same
location.
)rinciple of
:ount.
ts
by the actual
situation
shall,
due
in-
to agglomera-
indices of
)roceed as
if
economy
as pure;
more
strictly speaking,
we
shall
From
reality,
Jidices of
conomy"
all this it
should be clear
economy due
to
in
abundantly clear
why
and further economies per unit of product as agglomeraon increases; and yet these economies grow more and more
owly as agglomeration increases. For on the one hand we have
iirther
134
the
known
On
themselves
etc., in
is
all
decrease progres-
necessarily accentu-
subjected as the rent of land increases with the size of the agglomeration.
of the function of
economy
as
maximum
It is
value.
hardly necessary,
I suppose, to explain
glomeration and which was on page 123 introduced into the theory,
is
come acquainted
to
it is evi-
we have
be-
will
attendant growing economies) which range from the stage of absolute dispersion of location to the theoretical
maximum
of ag-
this fixed
reality.
agglomeration
The
will,
as-
how-
SECTION
THE
The theory
LAV^S OF
II
AGGLOMERATION
arisi
cai
performed by a certain
definite
a]
exisi
any or no advantages.
If,
as
is
AGGLOMERATION
facilities
rials,
135
or at the coal
fields,
tion,^ that phenomenon does not lie within the field of the theory
of agglomeration. The same is the case when the attracting "la-
way
as to
agglomeration.^ All these are from our present point of view for-
'
may be due
us.
Hence
will
glomeration which
A.
is
be considered in
with ag-
The tendency
first
it
its effect
is
may
oriented
What
locations."
effect
Assuming
,only
questions
When
And,
'tent?
a)
if it
When
By means
will
a case of
us put two
it
take place?
of the concepts of
let
is
It is
minimum
it is
how much?
ef-
136
The
feet.
economy.
signifies
If
And
tally
minimum
trans-
on pp. 112
The
ff.
deviation costs per ton of product must be smaller than the econ-
by the index
The isodapanes
tion.
of
economy
product.
unit of agglomeration.
If that is clearly
understood
we can
if
and
same overlapping
unit of agglomeration. For if such
effective
some common points exist at which the economy of agglomera133 tion is not absorbed by the deviation costs. And when the quantity of
es the
pays
To
state
it
in-i
circumstances:
ical
first,
intersections of
crit-
When
AGGLOMERATION
erated and the concentration affects
all
137
if its critical
isodapanes intersect
For a
it
will be
clarification of the
two "conditions"
make up
a unit of
by
is
in part
it is
necessary to
its
exceed the deviation costs, since only for such units does the
overlapping segment
exist.
In
fact,
amount of production) somewhat exceed this theoretical Hmit and can also attract certain productive units which are somewhat farther away
and whose critical isodapanes do not quite reach the segment.
This may happen if the ratio of economies to deviation costs for
can (for the purpose of attaining the requisite
economy
still
is
from
be created
many
sufficient to
attract
138
still
whose
critical
all
those parts of a
is
if
sufficient to
make up
the ef-
Where
b)
will
is
And where
easily
made
will
clear
of the isodapanes.
production
costs.
may
of agglomeration; for at
minimum
transportation costs.
But where
tion
The
in relation to the
common segments
less
this
the large units of production will attract the smaller units to locations near the former's original
fix
minimum
points,
and
will there
We
manner
common
location of production
'
AGGLOMERATION
139
which
is
constituent units.
The
minimum
FiG. 20
in the
must
lie
point
with-
Fig. 21
this
segment
it
may
The
which the
lem as to which of several possible agglomerations a unit of production will choose; and this leads to the important rule already
indicated concerning the size of centers of agglomeration. If the
units
and
that
in several directions
is, if
agglomeration,
in
it
former
minimum
is
possibilities of
common segment
least distant
from the
For
140
result.
In this connection
is
more
likely
segments
still
was shown
size
in our
indi-
(i.e.,
tend
previous discussion.
glomeration
it
will
is
nearest to
Among
the segments in
ag-
its vicinitj
still
slightl>
make up a
requisite unr
irl
This
is
From
th
fice for
in as
many
AGGLOMERATION
tion.
This result
may
also be reached
141
by showing
it is
d) Modifications.
We must now
ance with our discussion of the attraction of labor locations) introduce the modification of the power of attraction of the centers
Ay
Fig. 22
)f
Dosits.
n drawing together
at
ind less favorable deposits of supply will result for each kind of
naterial used, the respective advantages of these deposits de-
)ending
ised
upon the
by the
new
site of
production. It
fol-
M\
and M2)
142
up
to this time,
this
new
all
others of the
it is
less
new
deposit
ikf'a-
similar to
labor location
is
lattei
is
depends (within
the
changed. But
basis
is
position,
This
and
in
ae
will be
very easy to
de-
olc
at once that
potentially,
tion.
may be stated
it
new
termine the
still
continue to
effect
it
new
would be necessary
to resort to thf
old ones.
and
(2
con-
the
'
AGGLOMERATION
143
C'Mi CM' 2]
CM'' 2. As
posits.
lie; it will
figure,
sim-
according
in
Figure 2^,
is
the
is
weak
rela-
whose weight
terms
new locational
erally
tively
of the
in
to the
of
minimum point
new
component weights
known
is
to us
Fig, 24
their necessarily
(new) deposits
will
will not
be
greatly changed.
2
Now to
omies continue to
ncreases.
rise,
is
in point of fact
economy. The
effects
made
one having a
ii
Each
144
its
we have become
mon
effect as a
acquainted.
of their com-
economy composed
of the units a^
as
a-,
the
all
Fig. 25
Which
Fig. 26
may
be deduced
will lie
our example
01
etc.
and
The
140 economy
fls,
economy
more
2 will lie
more
distant than
Gi, a^
more
oi
ir
distant thar
critical
isodapanes
ol
is
AGGLOMERATION
MS
come
clear
may
best be
made
of
(i
2) competing.
and
The isodapanes
by
This
o)
may
units than
number
of productive
Fig. 28
Fig. 27
iround the
minimum
any more
common
:ase
)ete
vith
ligher
)er of
7,
units than
Or
it
may
rank actually include within their segments a larger numproductive units (Fig.
where
a-,
2 6,
where
02 includes three,
and
Fig.
is
The outcome
ratio
of this competition
more
is
it is
fa-
in the
146
This ratio
02-^
is
accurately ex-
lie,
which
lie
will
have
particular agglomeration.
to
be assumed in order to
The
effect this
Hence
only
it is
pane of the
common segments
segments of
02
and
large productive units (which will place the points of agglomeration at the center of the segment),
it
th,e critical
isodapanes
is,
then,
sufficient quantities of
the segments of
all
the units.
for,
In Figure 26 agglomeration
although
it
tc
seems at a
first
for
will
glance pos-
sible that
and the
critical
The
Editor.
lit
AGGLOMERATION
so far
beyond those
147
do these higher
production to
make up
quired for the higher unit), but also their segments are larger
than those of the isodapanes of lower order, then in that case the
higher unit of agglomeration will win out.
To sum up
rank
tion of higher
agglomeration of lower
rank only when the isodapanes of higher rank surround the min-
imum point
at a distance so
much
form larger
may,
pete.
all
This case
is
first
discussed.
minimum
points at
much
3.
From
minimum points.
manner
clear. It
the
in
it
will
first
of high-
143
148
which the economies increase with successive units of agglomeration. It is a diagram of the increase of the function of econ-
at
omy
omy
Vice versa,
if
30).
The preceding
analysis
is
Go, 3, in Fig.
Aj As Ag
Fig. 30
Fig. 29
(and
a^
Aj A2 A3
a.z,
in
size of the ag
manner
the functioi
ation.
But on
closer examination
it
The
is
to
be clearly understood a
in the scale.
give:
f.).
And
is
large or small
AGGLOMERATION
sarily
have
its
own
149
We
shall
Second,
The
144
they are spread widely apart, scattered about the country, the
Dossibility of
De less
than
On
if
common segments
this
The quantity
Third,
:ion.
forming
cir-
any,
if
jlomerative units.
may be made.
We are already acquainted with the first factor from our dis;ussion of labor orientation. We there found that the basic disance of the isodapanes
is
by the general
nental condition).
and
This
first
factor, therefore,
may
work independently
be sepaof each
ither.
may be com-
lensity of industry.
ral units of
factors
ept of the density of industry, since both in reality are a reflecion of the
'opulation.
ects:
locanty=
number
(2)
150
of centers of population
production.
As
we
find
two conditions
in-
herent in the character of the industry, and on these two conditions the deviation to centers of agglomeration
junction of
economy
weight. So also
of the industry
depends
and (2)
conditions
i )
the
locational
its
:
the costs
in
all
the conditions j
It will
be remembered that
expand;
in other
if
if
will
is
more important
to
effect.
The expansion
or contractioi
sure) as caused
by a change
of locational weight
and a change ol
sets of isodapanes.
to
Such
oi
oi
number
indi-j
of intersections. It
is
to regard all of
l
^"
AGGLOMERATION
151
in the function of
an
which results
economy. The expansion of
alteration
unaltered sets of isodapanes must not be confused with an alteration of the order of the isodapanes in the scale. But, as in the
latter case
facilitating
FiG. 31
Fig. 32
same
effect;
and aids
in piling
up
sufficiently
in other
will
''scale."
"This will be evident from the above figures, which are simplified
The
(i
and
the function of
economy)
differ
is,
is
ure 32, where they have been brought nearer together by one
quarter. In Figure 3
there
may
152
1,
and even
this
make up
and
ation toward a^
production of
all
make up
ficient to
2, if
we assume
is
will, in fact,
a..
Under
that as-
between the
critical
is
ax.
To sum
of isodapanes nearer together affects the "scale" of agglomeration. It affects the scale of agglomeration less than varying
the function of
economy
affects
it;
for
if
draw the
all
locational
isodapanes, in-
The
gross
words, I
let
If,
if,
more
however,
in other
Later
it
will
differ-
meantime
ways
of working
must
suffice.
We now
tor
come
to consider the
this that
an increase of
it
We
minishes
it.
For
if
common segments
of less
AGGLOMERATION
widely extended isodapanes will
now
153
economy
is
real-
This
may
is
quantity of
than this elementary idea here; for the locational figures and
their isodapanes fail us as graphic aids in clarifying issues in-
4.
It is,
all
a precise formu-
We may
is
mind
portant to keep in
it is
im- 148
it
gives us the
number and
The
for-
agglomeration arising from any combination of the various factors, has, therefore,
eral idea
^
Cf
It gives
only a gen-
p. 246
f.,
infra.
Editor.
154
we can compare
mula
is
The
it
it.
for-
is
in
does render, not only theoretically, but also for any given case.
many
factors in question
must be operative
have
in
same
ing to the
even distribution of industry merely represents one of the various grades of density of the real body of industry.
Appendix and translate its formulas into non-technical lanUp to this time we have dealt only with the absolute
economies which could be attained per ton of product in each
stage of agglomeration. These economies were treated as a funcin the
guage.
economy" being
utilized.
to the
is
an increase
i.e.,
the increase of
AGGLOMERATION
eration
f(M)
composed
is
155
which cor-
Appendix the
analyzed;
is
and
we have
it is
it
are connected.
All that concerns us at the present time
is
the formula
R=^ ~\'^
as extended,
scat-
^^
which
units,
we
is
get
Thus we
the
to the
we wish
to get
it is
and
amount
dustry."
The
the radius
density of industry
(R) which
is
M = TrR'p,
^=V;Trp
The formula
is
as follows:
156
If
instead of the
AM)
AS
\7rp
Trp
150 or
f{M)=^L\/M,
V
The meaning
suming
of this formula
TTp
may
level(5),
rate
and the density of industry (p) are known, we must informula that value of (M), i.e., that magnitude of
^^
V TTp V Mi
i^
know which of the possible values of a function of agglomeration j{M) of an industry will become effective, or, in
other words, if we wish to know what ''scale" of agglomeration
will actually become a factor for an industry when the conditions
we wish
to
of agglomeration are
The Appendix shows in a simple manner how one may determine by diagram whether an effective M, which corresponds to
these conditions, exists at all, and therefore whether any agglomeration will take place. It shows also how we can determine the value of M. The Appendix brings out further that if
by dividing the
total quantity
(G) by
minimum
costs of transportation.
What
AGGLOMERATION
will
be the result
if
157
tion
orientation
is
we
shall
agglomeration
is
another.
When
do
la-
of attack, for
most cases
will, itself
agglomeration,
we
already know, in
be a point of agglomeration
we have
called
it.
accidental
and
measure of
the function of
must therefore be added to the econDmies of labor if we wish to know the total amount of economies
with which the labor locations compete with the purely transporDf
accidental agglomeration
:tational locations of
is
agglomeration.
The
question then
is.
Which
tions,
Editor.
"agglom-locations."
158
all
cations.
It is
la
oi
inde
its
just as
much
must
differ
if it is
fourti
to prevent the
aco
AGGLOMERATION
ent agglomeration within the
159
proportion of industry.
On
will in important sections of industry (namewhich a large agglomeration is due to labor orientation) strengthen labor orientation as compared with transport orientation. For wherever the accidental agglomerations
caused by the labor locations are larger than any possible indeto labor
economies
and
is
added
ori-
to the economies
loca-
tion.
153
We
make
can
by
economy
for a series of
different industries:
No. of tons
100
200
300
400
500
600
800
700
Agglom-economy
per ton.
What
will
be the
effect of these
7.5
7.88
7.82
7.75
economies of agglomeration
in industries
labor locations
amount everjrwhere
to 10 per cent.
Let us sup-
in
of
course, the
same
Then Table
Let us say
it is
300
is,
tons.
and ''labor orientation" compare with each other for the various
industries.
i6o
We
tries
weak
that
it
i )
in
less
is
in itself
glomeration with
we
its
and greater
ward agglom-locations within the groundwork of transport orientation. However, such a type of change in location cannot-
TABLE
AGGLOMERATION
And
i6i
in
ed that these additional economies (due to accidental agglomeration at the labor locations) strengthen labor orientation in
general,
how
will
we may say
much
the
same way
as do the
We can measure the atpower of each individual labor location only if we add
to the labor economies which it offers, not only those economies
resulting from the replacement of deposits, but also all the economies of accidental agglomeration which result from the total
amount of production attracted.
This will mean, for the final orientation of the industry,
(irst, that particles of the industry which would otherwise have
tracting
tional
2S
minimum
cost of transporta-
Due
to the addi-
And
it
will
offer
to
them represents
units of agglomera-
at-
be
still
still
farther away.
The
more accentuated.
155
62
f
The
essential effect
will
cies
is
to agglomeration
SECTION
I
III
we now attempt
to
fit
more
clear.
verifica-
I.
THE COEFFICIENT OF
(
this purpose,
industry.
no problem.
it
anc
is
con
it.
tion of
AGGLOMERATION
163
To be
which
sure,
it is
industries; moreover,
it is
is
different
omy
we cannot
de-
will
whose value
is
formative) process
itself
compressible^ costs
an
effective function of
economy.
We may
show a high "value added through manifacture" (Formwert) } The reason why only industries with
juch a high value added through manufacture will have an effec;ive function of economy is simple. We know it already from the
malogous reasoning about the labor value and the index of labor
:ost.^^ There we said that only where high labor costs per ton of
of this
term Formivert
"form-value"
'ournal of Political
stablished
may
is
is
p. 107.
best rendered
by "value added by
term form-utility.
Editor.
Editor.
Editor.
ff.
Moreover, there
is
it.
Cf.
the already
64
etc.
al
manufacturing costs are the very ones which the effective elab-
They
re-
creates,
first,
large units of
opments
will
moment
be of
units
an industry
its
product
is
high.
in-
critical
isodapanes of the
loca-
To
manufacture
is
the object of
all
agglomeration
groups of
factors
in
importanii
this indej
tell
ag-;
this
does not
tell
us
its
it
ii
only outlines
the effective tendency toward agglomeration. For this measuring rod does not point out which reductions exist in reality (duti
j.
AGGLOMERATION
165
working force and of technical appawhat is the order of succession of the units
of agglomeration. But since we do not have clear knowledge
concerning the dependence of the function of economy and of
the virtual agglomeration of industries upon the general characto the elaboration of the
it tell
rod which
amine
this
carefully,
is
we may
we
shall
measuring
do well to ex-
and
to relate
it
Now
it is
we
glomeration) to
into that index.
means a
This factor
is
by a
is
We can
is
to a
of
only
mind
added through
manufacture to that of the locational weight and create a connecting concept out of the index of manufacture and of the loca-
suggests that
we
158
66
we have
possible
is
by
man-
ufacture, not to the ton of product, but to the total weight which
has to be transported
term "labor
the
'
coefficient"
''coefficient of
Now we can
formulate:
industries with high coefficient of manufacture show strong tendencies to agglomerate; industries with low coefficient of manu-
facture show
weak tendencies
to
is
comparative-
it
of assumptions
it.
2.
will
oi
what forms
It will
shall
we
find
it
in reality?
may
influence
simply by increasing
al
J (-Q
theii
we have
bor orientation.
It will also
is
o:
Cf. supra, p.
no.
Editor.
AGGLOMERATION
through machines
is
167
sumption of material (coal), such value can hardly cause the coefficient to
of
human
consumption
mean
so far as machines
as long
and
in
The
port orientation
by
significant in comparison.
For
is in-
low
Two
results follow
we
far
some-
away from
Second, wherever
considerably from
its
we encounter an
transport orientation
These
it is
we
shall
be safe
in
This makes
it
issue
upon which
more
and
detailed dis-
160
68
3.
Which
TENDENCIES OF DEVELOPMENT
we
find
upon
know
sis
closer
life?
We
coefficient of
The
manufacture.
and declining
first
two condi-
is
modem
times.
eration.
The
They
critical
cessantly extended
by
and
this
is
velopment.
But the
significance of a
change
in the conditions
which are
is
not
by the
becoming effective.
hand the value added through manufacture becomes a cause of considerable agglomeration. For the elaboration of the working force and of technical apparatus during the
eighteenth and nineteenth centuries meant, as is well known,
the creation of increasingly large frameworks of industrial pro-
influences
On
the one
duction.
It
and of more extensive reductions (compressions) of the index of manufacture of various industries in cases
of agglomeration
AGGLOMERATION
in
To
169
The
all.
tendencies of
hand, given to the coefficient of manufacture a considerably increased significance so far as agglomeration
is
concerned; but
new
cient of
units of agglomeration
manufacture (due
by reducing
to a process of
this
same
coeffi-
"materiahzation" of
production).
vious from the viewpoint of this part of our theory that the
170
tutes the
process of agglomeration.
manu-
tion
in individual
producing
units,
which were mostly situated at the places of consumption, because of the low prevailing material index, as has been pointed
162 out. For
all
its
the rapid
what
population
is
how
far agglomera-
and
upon
to
what extent
their coefficient of
outcome
is
to
"Not
published.
Editor.
AGGLOMERATION
more important part
far the
171
of the effectiveness of
modern
ag-
Still,
we
shall find to
how
large
how
this fact
the emergence of the attracting labor locations, but also the extent of agglomeration at these labor locations.
It will
become
ma-
maximum.
163
But particularly
is
''social
ment
social
It will
agglomeration with
its
first,
in
last footnote.
Editor.
this
human
172
it is
This point
is
more or
less well
by
Editor.
CHAPTER
VI
so far built
an industry
is
by
locational forces,
its
independence
do not in fact
exist.
We
First,
heap of
We may
little balls
which
we have
-ocational factors
:ributed
ittle
by those
may
be redis-
iined within
Dects of a
Ve
173
165
174
SECTION
and
let
us neglect
is
all
influenced only
by
f
cost of
mean
it
of
would ob-
viously be that
the
principle which
We
must
if
the
we
we
shall
li
is
capable of being
combined
first
split,
technologicall}
in thi
is
We
shall
oi
Lei.
entire produc-i
'
175
be in Pi and P2
What
shall
will
The
locational figure
first
first
M1M2P2;
is
stage of pro-
duction and the place of production of the second stage of production which
is
also,
The second
locational figure
is
M^PiC;
Fig. 33
it
is
first stage,
consumption of the
stage of production
tion,^
or the
final product.
is
point, as
and
in the
in the place of
minimum costs of
we have called it,
the point of
minimum
locational figure.
and
is
the
which
falls
new
locational
igures.
;tages of production.
our problem
joints,
is
Cf supra,
.
p. 53.
Editor.
The mathematical
176
problem involved
is
solved in Appendix
We
8-ii/^
I,
shall
make use of that solution at this point. But let us first see whether
167 we can learn from the foregoing when this split will occur.
To attack this problem we must alter our question. The
problem is not, when does such a split occur? but when does it
not occur?
If
we
When
we
is
shall see at
a particular case
among
the
many
possible locations of the separable stages of the process of production. This case
is
first
lie
The problem
apart.
Under what
in the first
all
made
itself into
as to
when a
can be
split into
One
is
first
is
We
may
split of
site of
the
first
is
if,
stage of produc-
its
weights) at the
(also
due
first stage.
would
all
If this
were
true, the
non-occurrence of a
split
and practically
all
productive
need
^
to
be
Editor.
production of
is
For
finished product.
the
first
stage
177
if,
is
is
is
it
will
determined by
ond
the
The
fact that
second stage
is
makes 168
upon the other hand, the
it
.location of the
'i
stage, or to
diate position.
if,
finished product, the location of the second stage will follow the
ple,
coinci-
dent.
It is
and the
is
bound
split will
place, provided
first
how
however,
it is
The
following considera-
^'
sum of
all this in
is
added materials
first,
will
rules.
little
These stages
will therefore
very seldom
'tave such a location unless they are oriented toward coal deposits.
So much
for that.
On
178
the
stage
first
must
lie
consumption
at the place of
must be no
as
much
will
is
during the
first stage,
be very
or at least only
to
there
as will be
This also
duction
loss of material
if it is
means that
We
the
frequent.
We may
say, even
split.
2*
Our next question is: Where will the locations of the prowhen production is split? Our answer will
make it possible further to elaborate upon the question as to
when such splitting will occur.
ductive stages be
The
is
it
will
new
carried on.
be remembered, can be
We know
the corresponding
Appendix
I, 11.^
oi
it
It is really
employed
in this
it.
and
who wish
But
thf
tc
scientific
Editor.
179
-two
at
first,
The
lo-
two
pi
ft
Fig. 34
line (cf.
Appendix
I,
Fig. 35
and Oi
of Fig-
ure 34). The points where this line intersects with the circles
are the locations of the split production (P and Pi of the adjoining figure). It will be seen at once that this simple rule
is
gen-
erally applicable.
Let us now assume a productive process based upon two materials so that the entire process will
one locational
split the
figure,
and
let
us assume that
first
it
is
possible to
the two materials, while the second stage uses one of the
ma-
i8o
terials (for
first
The
two stages
circle
first
(cf.
weight triangle as
is
its
The
points
The two
Fig. 36
them
five
ma-
The
two materials;
the second stage combines the product of the first with two more
materials; and finally the third stage combines the product of
the second stage with the fifth and last material into the final
three stages.
first
first
171 product.
is
may
is
Editor.
worked up
i8i
and metal works; other parts are worked up in wood manufacand still others are worked up into half-fin-
turing processes;
The diagram
short,
Fig. 37
For
it
will
it is
This limitation
not as important as
it
is
regret-
might seem.
And
Dther cases
we
shall
circles
:o
lie (cf.
:he
M4C
upon
172
182
lie.
We
can find
by using the frame of Varignon^ for the purpose of moving one corner of the more complicated locational figure along
this line
Through
this
method we have a
mathematics, even
we
if
A special construction
made with
way
for partic-
much
But
greater.
here.
Fig. 39
Fig. 38
more precis
if
and
Appendix
(cf.
I,
Thai
11)
at the
de-
But
applying as
it is
it
doesi
the conse-
Editor.
is
situated in
;
the
183
beyond each
two stages
The elements
of
common location
is
the result.
4
It is quite interesting that the construction
we
discussed be-
if
the splitting
employment
of
new
deposits.
Such
re-
place of consumption, or
when
nearer than
is
first
main materials
The
The
production.
One can
these substitutions.
rules,
using the
This
is
is
not complicated by
new deposits
true even
if
former
as bases.
by one deposit
is
now brought
into the
much
as
it
quent example
is
coal.
The
become the
fre-
which then
No
74
i84
B.
such an industry
is split
is
it.
up and oriented
at the locations of
tion
is
Fig. 40
Fig. 41
may
then be
re-
by the labor
will
occur
if
we know
already. Deviation
transport location.
By becoming
is
And
if
de-
the location of
its
particular
The
for a fixed
and
de-
185
The
cation of
its
own
For these are not fixed; they are inby every other. The locations of the 175
is
Due
to this deviation,
(P\P'2
is
some
stage.
had
to
do not believe
which
alteration
mean
and
this involves. It is
others
it is
more important
more favorably
may
to note that
be replaced by
may
their replacement
tracting
mean a considerable
all
any
difficulties of construction.
Theoretically
its
the attracting
5uch replacements.
*
f.
Editor.
86
We
ought to mention,
finally,
some
location which
to split
by causing the
itself
deviation
which
is
it
theoretical problem.
C.
On
it
will
the basis of
siderations.
by labor
orientation.
of production
and
it
known
The
is
as
is
well
which have
As
possibilities of agglomeration.
problem
is
created by
may
which precede and which follow the stage within which agglomeration has occurred. But what has been said in dealing!
tion
with this problem in the case of labor deviation holds true also
for the case of agglomerative deviation, mutatis mutandis.
ever, this
problem
will
be of
much
How-
This
much
is
nearer the
new
Cf
location created
by agglomera-
infra, p.
246. Editor.
is
187
when
that this
is
due
is
not
to the elimination of
split.
It will
bad material
be remembered
deposits.
What
has been said there holds true here: the center of agglomeration
is:
will the
known
The
how
it?
GENERAL OBSERVATIONS
an industry are
split is the
upshot of
Indeed,
it is
split.
handled
will
Cf
it is
p. 141, supra.
Editor.
88
for each of these parts. It will further determine how the independence of the parts and the availability of materials are af-
fected
loca-
facilitated
when more
when
these addi-
duction.
transporta-
an industry which has a whole series of independent stages of production, of which however only the first
stage involves combining several materials, while all the later
tion will exist for
show the
The
pic-
all
which we
consumption.
older
may
We
if
or
It
locational
existence.
terials,
inal picture.
The use
of necessity the
is
of production
if it
does so at
all.
it
would be a mistake
189
tendency of a given
weight of
The magnitude
is
involved.
What it does
determine
is
the extent to
will
be attracted
is coal, this
attraction
may
be so
we have seen
that splits
may
labor or to agglomeration.^^
also be caused
To
by deviation due
to
linen clothes
to certain
which
is
German manufacture)
as far as Madeira.^- It
"Written
in
1909.
f.,
186
f.
Editor.
is
is
due
79
190
We
tor.
cies.
2
We
its
and
if
so, in
it
many
technically independent
made
it
sc
a
it
to pieces technically.
The productive
leather,
and the
process througl:
fibers, as well as
mosi
many
inde-
pendent stages.
It is true,
zation which
1 80
tion
was not
First, the
economic organi-
was superimposed on this technically split producsplit to any considerable extent. The number oi
No
Cf regarding
.
well-known
article of
Bcher, "Gewerbe,"
production. It
is
well
known
;heir
of too
;ion
)f
splits of
191
:or splitting
split geo-
and separate parts of the proprocesses were largely oriented toward consumption,
iuctive
we found
ust as
oward consumption.
To
mmption, the
policies
/al rural
Indeed,
we can com-
The
if
we
conceive of these
:ould not
to
which these
were oriented toward their materials and not toward consumption. Consequently the concentrating policies of the towns
stages
the
"We
mean by "materialization" the extent of the use of localized matewhich strengthen the components of the materials in our locational figures.
The change from ubiquitous to localized materials means also "materiahzation."
^n view of this circumstance the Middle Ages had little "materiaUzed" industrial
ials
192
analyze
how
From our
point
out system in the fifteenth and sixteenth centuries represent migrations of industry
away from
handicrafts' production.
from
tailoring,
Those parts of
become organized according to
the putting-out system migrate to locations which have become
more attractive because of the general improvement in transporold locational unit of the handicraft production.
the
possibilities for
The
half
production. This
is
the time
when
193
when the mechanical manufacture of legs appears between tannery and shoe and boot manufactures; when the manufacture
of pulp
ture;
comes
when
manufac-
when everywhere the mechanization of producnew stages of production which have independent
ucts; in short,
tion creates
locations.
capitali-
zation of production has done just that during the time of the
great industrial revolution of the nineteenth century, thereby
by
creasingly split
It is
division of labor
labor," which
is
trade. It will be
remembered that by
this doctrine
we were made
tion costs
first
mists observed
how
Econo-
by the division of labor; they made no distinction between speand differentiation into stages of production; they
observed the independent local orientation of the stages; and
since the idea of the division of labor had in general become the
cialization
all
we
rested (as
194
life
its
force
and
to give
is
now
them
ir
theii
gathering
They need
ital.
first
let
to organize
much
links
th
thi;
time.
But
ital is
cal process
it
produc
many parallel
less effective.
The manufacturer
and attempts
to
of worsteds
combine
it
Then
less striking
who
with his
ac
weav
195
who combines
all
the
all
necessity of an entirely
new
orientation
may
may
centers of crystallization.
may
attract as
But even
this
beginning
it
But this is not the end of the story. In the long run the movement will not end with such attractions of parts or stages of
production to the stronger points of crystallization. That is to
say, in the long run the
movement
it
per-
meates the entire industry. In the long run, then, there must
orientation of the
the enormous
fixed capital
may come
which
is
new
large
by these combina-
involved in a dislocation of
these industrial giants and which give great weight to their location as
it
18;
196
and
laws,
it
will
if
location
is
at all controlled
by economic
to the locations
and
their
lution
form
This
coefficient.
will
which are
coefficient,
which was started by the recent development toward conDuring the entire nineteenth century we were under
centration.
style.
Today we
are
SECTION
II
far
vari-
They in
fact interact
may
is,
not the
ways.
It
be of three kinds:
is
in various
may
be com
lo
may
products. Here
materials of the
may
be described
197
I.
different products
if
may
this
its
are
own
process,
produced
and
since
we may simply
in the
same
plant^^
It is
The
absent.
But
may be
other electrical apparatus, the garment factory which manufactures overcoats, capes, shawls, blouses, etc. at the
same
time,
does so for economic, and not for technical reasons. This difference
is
The
I
connection of technical factors makes one location for several
kinds of product imperative. It
may
Not
location;
sumption.
of
we must take
The
enterprise, since
an enterprise does
198
One might
when
This
deviation
common. Ob-
viously the coupled productive processes would have had different locational figures
and
different
minimum
points
if
their
Fig. 42
minimum
points
is
we have found
for
and
esses at the
it
new
The
for example, protect these industries better against the evil effects of business cycles or
stitutes
will deviate;
199
such locations
by the
The
we have
which
their
seen,^^ this
of the attracting force of large locations, all this will take place
difference
is
any or
all
may
by
be due to organiza-
size.
unit of agglomeration
come
into existence.
made up
of
is
how this
is
nothing peculiarly
function of
diffi-
economy agglom-
volved.
We
the
new element
is
The
Cf. supra, p.
no f. Editor.
200
bined production.
seems that we
It
shall
have
to
is
en emphasized), a solution
is
not as
difficult as
may
we have
But
oft-
at first sight
f(M)
its
If
we
is
ucts are all produced separately, they will follow the tendencies
which are indicated by their individual formula; if they are
produced
in
combined
process.^^
not enterprise;
same plant
(plant,
cf.
is
".
Wenn
sie
said in this paragraph as well as in previous chapters, that this sentence refers
to the following
problem
of various agglomerative
involve a coupling of
it
some
It
it
enter a unit
agglomeration which do not involve the coupling of the several productive proc-
which are being attracted; while other tendencies issue from a unit or
which do involve such couphng. The answer to this
problem, following as it does from comparison of the two or several formulas,
seems to be indicated in the text. Editor.
esses
units of agglomeration
" The
situation
is
where coupling
is
technically
from the
same materials to require quite different kinds of machinery and labor. But it
would not be worth while to combine two products which are essentially disnecessary. In this case
it is
same function
if
of agglomeration
no matter whether
201
it
We do not have
between the agglomerating
processes of isolated and of coupled productions. The formula
one, or of another, or of several of the products.
to distinguish, roughly speaking,
is
The
production,
it
will
in considering the
density of
it
must be entered
of agglomeration.
processes will
will
it
is
come
all
That
this is true
may
be connected by the
technically connected
if
factors.
may be due
either
is
the by-
tive processes,
Concerning by-products,
cf
infra.
202
off as
is
connected
its
materials,
industry
is
is
based)
is
terial, or
may
if
Fig. 43
one process or for the other. This case is very frequent. Our modern industrial structure, enormously differentiated by innumerable branches functioning as independent productive processes,
is
it is
not very
difficult to
enumerate. In other words, large parts of this industrial structure are connected
by
by the
The
rials
191
way
raw
materials,
different parts.
effect of these
(technical connection
the same.
Each
(cf.
the adjoining
i.e., if
is
203
the
the others are distinctly by-products,-*^ or even waste, the resulting problem of orientation
main material
simple.
is
The
common
rial is
the
initial
The
is
is
processes of production;
it
production continuing
it.
stage of production.
junction point
lution
is
is
is
their
lines of.
common
this
The
so-
We need only
one prod-
imagine the
fig-
(which
is
series of productive
the bones, because the by-product has, comparatively, too small a value.
204
Much simpler is
in
which
different pro-
by materials on account of
also much more important be-
it
is
may be used
The
transport orienta-
alternatively in other
may
be used
in
other processes.
to concern itself
and therefore
whether
its
processes,
will
not concern
itself
about
it
concerns
itself
about whether
its
kind of industry.
we always have
to
The
is
from the same material deposit, or whether they will use a hundred different raw materials which happen to come from one and
the same deposit.
The
different processes
become
internally in
no way dependent upon one another because they all use the
same raw material; they merely happen to have the same geographical starting-point, nothing more.
The importance
common
geo-
205
when we
con-
created, at that.
common
of the
will create
such
first case.
The
The
common
orienta-
result is the
same
as in
be-
(i.e.,
same
initial
rules
and
stages of
the
be rooted in
structure.
The
is
how
and simple
the orientation
is
permeated by such
it
seems at
first
admissible
lations
now
that
and analysis
we have seen
its
is
it,
since a great
orientation.
Still,
in-
many
such 194
the
2o6
entire theory
is
up
built
using, as
it
manner
in which our
an
does,
isolating analysis
production.
3.
As
MARKET CONNECTION
may
terial or half-finished
product;
it
may be a
fixed
tion for the other; this situation exists v^here they are connected
"a connection of production" since there takes place no transformation of materials which would create
new
products.
No
The connection
is
This connection
may have
means
in-
of production or the
auxiliary product are produced, quite apart from the fact that
any event
in-
rules
have been elaborated for the deviations due to labor and ag-
Editor.
may
means
be,
and often
is,
207
(i.e.,
remarkable.
The
main indus-
is
drawn
if
the
main process
main process
its
which happens
for
example
seems to arise. But may it be emphasized at once, no real problem appears. All we can say here is that special locational factors
and such special factors will often interfere with the rules
draw the
of the theory
will
to the place of
rules,
it
should
definitely given
lie
elsewhere.
by the main
As the place
of consumption
is
termined.
It
may
make
fact,
the nature of
it
is
caused by such
special locational factors, the fact will not at all alter the funda-
An
industry manu-
2o8
its
own
196 by
Any
market
by requiring the
industry which
is
an auxihary industry.
The only instance in which such market connection yields
its
is
anything for our general theory occurs when the location of the
main process
cal contact
it
affected.
is
may
This
is
(if at
a certain stage
tion
is
known
to us already;
it
will, for
tion of the
namic working
reason
why
it
may be a bit
of these forces.
The want
it
is
dythe
The
resulting tendency to
come
main process
of production.
be realized, but
for
it;
it is
linked from
209
it
influences the
there.
4.
tions.
ically isolated
location.
deviation.
The two
They
all
these productive processes in their theoretically isolated orientation as well as in their final orientation, having regard to all
We
arrive at a complete
if
we
if
we start with
lo'
210
if
we
finally
ways
in
with each other and are woven together into that seemingly very
complicated tissue which the modern industrial structure represents. All this, including the connection
is
its
and serves
theoretically clear
manifold goods.
i
i
CHAPTER VII
MANUFACTURING INDUSTRY WITHIN THE
ECONOMIC SYSTEM
The
now arises as to what extent our rules as develdetermine the local distribution of all the units
question
oped so far
will
far. It
all its
com-
ponent parts as dependent upon one another and still leave open
the possibihty of production grouping itself in very different
is
land.
limits of the
is
upon the basis of the hypothupon which it was built. It will be remembered that these
conditions were fourfold, namely, ( i ) that the location and the
is
fixed; (2
that the
supply at these
latter is
Uy
possible)
joint
212
On
by the prevailing
loca-
tional conditions.
in
must get behind this assumption that they are given, because it
was only justified as an aid in our analysis. An attempt to look
behind this assumption will show whether the theory as developed thus far suffices to explain industrial location, or whether
it has perhaps gaps which must be filled by another approach.
"To analyze the elements which were assumed as given'
involves an analysis of our locational rules as they will actuall>
which
it
ol
and
lo
th(
same
in
population, locational weight of the industries, and the indices of value addec
costs.
The introduction
'giv-
from the viewpoint of locational theory. They are subject to rules which an
distinct and independent of locational theory. Transportation rates and materia
en'
indices are a resultant of the general technical development, while the indices
labor costs and of value added through manufacture are partly a resultant of
ol
thl'
development and partly a resultant of the general development of economic organization and industrial technique. The density of population and of production also has
form
in
its
which
it
amount
ai
of prod-
demanded and the area). In all these conditions we do not assume anything
which the theory itself ought to explain." (This is slightly abbreviated.) Editor
ucts
MANUFACTURING INDUSTRY
dustrial orientation.
which moves
which
come the
to a certain place
factors creates a
^the labor
new
it
basis of
will
be used
new
its
which
213
location,
new basis
even
orientation of industries.
we might
a modification of
[las
each
say:
moment
is
period, such
upon
this basis,
is
by
:he
In no other
way
will
since 1861.
But
it is
'or
be pos-
obvious that
it
so to speak, which
is
transformed; whereas
we
itself.
is
the
We
want
ind the general basis upon which the new system orients
We have
ma-
are looking
to
itself.
214
Since nothing
is
which we wish to
and labor
location.
to be
itself.
II
What
is
We
shall recognize
we ask
it if
determining location would develop if some people were to occupy a new and empty country for the purpose of building up
202 siderations.^
first
will
become the basis and the starting-point of all further development as soon as the (supposedly limited) area of settlement is
chosen. This first stratum must be the agricultural stratum,
whatever may be the conditions in any other respect, and whether or not cities are at once
founded
for
under
all
circumstances
to achieve this
is
for the
itself
over as large an
areai
this
Dynamik
ff.
interesting
also Introduc-
MANUFACTURING INDUSTRY
21
with
203
This
first
its
a foundation
first
all
it.
The
it
may
stages of this
all
mary
industrial stratum)
is
for
which a
(i)
The
industrial population
which
is
engaged
in sup-
this degree of
cities, etc.)
de-
Both these developments will take place in accordance with the wellknown law of Thiinen about the relation of the different degrees of intensity of
agricultural production and the distance of that production from the place of
consumption [Cf. Johann Heinrich von Thnen, Der Isolierte Staat, and above,
pp. xix ff. Ed.] It is certain that some relation exists between the number of
people who want to live in an isolated economic system and the area which is
velop.
oscillate
that does not alter the fact that the size of this area
structure of strata of locational distribution.
is
And
raw
this size
is
and a footnote
is
worked
materials.
But
into
it.
is
necessitated
by
slightly abbre-
Editor.
2i6
own
officials, free
and
private means;
professions,
last
two
strata.^
The group
industrial stratum
204
is
determined by
it
is
tion
tion.
industrial stratum
which
is
is
highly developed,
directly
try; next
is
It
we
we assume
is itself di-
a substratum which
we
shall find a
substratum which
is
engaged
in supply-
works
and so
on.
There
will
be a number of sub-
its
and decreasing
in
we
suppose, for example, that 50 per cent of a people are agriculturists while the other
we have
dis-
Offhand
it
do
it
for the
whole peo-
separate treatment.
MANUFACTURING INDUSTRY
217
ple.^
will contain
suffice for
supplying this
first
substratum. These
trial
population
is
with these
which
is
we now
first
is
it.
The
role of such
is
illustrated
by
throughout, that
is,
retail
Cf Introduction above,
.
p. 4.
2i8
locational distribution.
with
officials
These
officials
This
it.
differentiated
wishes to
A really independent
stratum
is
made up
and the
groups which only consume. Of the former this stratum would
include all those who are engaged in the general organization and
managements of the exchange of goods, whether material or immaterial; of the latter it would include those officials who do not
have local, but general, organizing functions the liberal professions and those persons living on their private means. All
these persons show tendencies of stratification totally different
from those of the local organizing stratum. They seem to be
of the population engaged in the circulating process
They appear to be
little
ele-
subject to economic
on
their private
means,
very complex way and are mixed with other causes (as
is
the
case of officials in the central government and wholesale trad206 ers). But be that as it may, what primarily interests us here is
the fact that the locational distribution of these elements
is
something separate and independent. If they are oriented in relation to the economic system at all, they are oriented in relation
as a whole
to
it
ly
mentioned
and as
strata.
it is
Although
one
group in the sense that their stratification can only take place
MANUFACTURING INDUSTRY
upon the foundation of
before.
We
all
2 1
we have discussed
group under the term "central or-
ganizing stratum."
These parts of the population will be partly indusand partly either local organizing strata or central organizing strata. Superimposed on these there are the industrial and
other substrata supplying the groups just mentioned, which in
turn possess their dependent substrata, and so on. These groups
telescoping each other ad infinitum do not need to concern us.
For we need only separate out those substrata depending upon
called them.
trial
we have
seen,
is
precisely
pendent stratum."
which we
we may
ignore the central organizing groups as numerically not important, while the local organizing elements are to
we may
be thought of
For purposes of
group collectively as
it
izing stratum.
We have now
found:
primary industrial stratum, (3) the secondary industrial stratum, (4) the central organizing stratum, (5), the central dependent stratum. The local organizing stratum
is
embraced
in
the
207
20
cation
an understanding which
is sufficient
poses.
change
whole pyramid of
strata.
make
come
life
When we
this
prob-
The formation
wish to
theoretical jus-
all
It
only a re-
"
It
may
be, as
was
is
im-
ff.
MANUFACTURING INDUSTRY
22
it is
phenomenon
We, on
upon the
For this
growth of the
cities develop.
of the distribution
this
we
are
of strati-
fication.
Ill
How
and thus
fix
and
and those
most cases
this sphere of
consumption
is
given, 209
And
form
is
While
which
this is true,
it
is
built
certainly
22
manifold agrarian forms of settlement which make for multifarious structural developments of this basis of consumption;
and
it
tween
must furthermore be conceded that the connection beprimary industrial stratum and the underlying sphere
this
of agricultural consumption
may
be very
The
way
(disregarding
clearly perceivable.
2.
The
ing-point
at least this
is
is all
like.
in existence such as
and
this
lo-
as a start-
how
case the "deposits" themselves must be "created," natural conditions being the only given factor.
If there
in the distribu-
we could say
would
the
more or
MANUFACTURING INDUSTRY
223
more or
less
employment
in conjunction
way
As a matter
the
if
trial strata
in
with their
would be given
thing given
by
But industry
will
be
cultural distribution,
opment of
it is
become a determining
which would be decisive if only the
usefulness of agricultural production as an industrial material
deposit were in question. Specifically, this involves its location
in relation to the places of consumption and in relation to the
labor locations as well as its rank among competing material deposits. These conditions are of course the ones analyzed by
Thnen,^ and as we have seen they are in part secondary pheditions of agricultural production will
nomena
the primary foundation. This shows that the actual develop- 211
ment
ed as given provided
i.e.,
we know these
^^
Cf above,
.
rules
p. xix.
Editor.
224
lowing fashion
it
is
by
Thus
own kind
much in the same fashion as the deposits of mining materials
are. They will be developed as bases of locations and employed
for production according to the rules we know.
The places of consumption and the material deposits are
given by the locational structure of the economic system as we
have analyzed it. The rules which determine them are someinto the scale of possible material deposits of their
212 ed, but in every case they are quite unequivocal. This means
that the picture of the orientation of industry would be revealed
we have
ana-
by the
locational rules
orientation
is
consideration as the given geographical basis of the real strucIt would be possible to calculate for each geographical
framework and for each stage of general economic and technical
development how the locational picture of industry would shape
up provided the number of population, the distribution of agricultural settlement, and the main distribution of the "central or-
ture.
ff.
MANUFACTURING INDUSTRY
ganizing stratum" were known. There would be no
225
room
for the
exercise
The
theoretical task
would be
IV
But what will happen if we take into consideration the dedue to labor and the labor orientation which rests upon
them? The discussion of these deviations has thus far been
based upon the assumption that the labor locations were given
and that the differences in their wage levels were constant. Does
the mechanism of local distribution which we have considered
thus far give us any clues for determining the local distribution
of such differences of wage levels, for the causes creating the
labor locations, and finally for the rules determining their development which have so far been eliminated by the assumption of
an unlimited supply of labor at equal cost? Apparently none
whatever. This is the great gap in our analysis so far. In the
rules determining the creation and the development of labor locations lies hidden the problem which remains for a further theoretical analysis. This problem will have to be solved by the 213
"realistic" theory. For at this point it becomes necessary to conviations
sider particular
the creation
economic systems.
tem
26
how
is
labor
is
studied. If
tion of population,
be seen that
this
is
it
means
local distribution of
" The
we would exhaust
we would explain
if
interested reader
may
ism' in Recent
Politi-
cal
above,
page
10, footnote,
Editor.
MATHEMATICAL APPENDIX^
Georg Pick
Introductory remark.
have attempted to outline in popular form some mathematical considerations which are necessary for an understanding of the
problem of locations. Regarding sections I and II, I should like to
treatise I
main part
The formula
of Section III
is
of
agglom-
stated in analogy
I.
The
stiU present
some
real difficulties.^
In the accompanying
figure,
A^ repre-
a^
always to be
of
ri
i). If
A and
2
r^,
is
located in P, at a distance
= i)
226
K = a^r^-{- 02^2
a^^r^,
of
As Mr. Bauer
f.
Cf. J.
H. Jeans, The
Editor.
p. 238.
Editor.
227
228
triangle 1A2A3,
must
any approach
of
lie
The
r^,
ra,
and thus
r^
minimum
locus of the
in
point
Mechanical model.
tions'*
Fig. 44
results.
The position
of
P for which these three forces are in equilibrium is the locus of the minimum point.
This suggests that we might demonstrate the position of Pq (as
we may
call
The necessary
of the locus
tions
may
to
by a mechanical
an old apparatus
be stated as f oUows
The
function
K has in its minimum point the differential quotient zero in all direc-
dK =0
ds
(for
each direction of
s).
is
cit.).
MATHEMATICAL APPENDIX
229
forces.
The
may
be
affixed.
Over each
roller
runs a thread.
some
point,
Fig. 45
may
substitute the
Figure 46
3. Geometrical construction of Pq. The weight triangle.
shows the forces 1, 02, 3, acting upon Po as straight-line segments
whose length is proportional to the force. According to the theorem of
the parallelogram of forces each of these straight-line segments if laid
out from Po opposite its own direction will constitute the diagonal of
the parallelogram formed
straight-line
segments pro-
vided a state of equihbrium exists. If one lays out the three balanced
forces (straight-line segments) following each other in their proper
direction
and
230
The
angles of this triangle TiTzTs are the supplements of the three angles
izs
the corners
triangle G1G2G3,
01^2^3 shall
22J
angles
we
which
is
fully
be called weight
determined in advance by
triangle.
its sides
71T2T3,
shall
the angle
^,
J2,
i.
Fig. 46
4.
^,
In order that
Po must he (according to
tain arc
to A2.
But Po must
also
He upon a
corresponding arc ^2^3, because ^2^0^ 3 should have the given size
jSi;
and
Po must
finally
we only have
lie
upon
arc
AA^
90)
angle
(/33
sults,
with
its
the required
to
A^A^ at A^ and A2, so that an isosceles triangle re(Fig. 48.) This apex C is the center of
apex at C.
circle,
which
may
MATHEMATICAL APPENDIX
Indeed
it is
A2CAi = iSo 2
Approach of
is
90) = 360
(183
equal to
2^, as
was
2^83,
231
and consequently
required.^
minimum
point
When does Po
to the
boundary
near one of
lie
angle AzPoA^,
almost equal
i.e., jSi
0.
will
The weight
angle; consequently the subtending side 1 will be very small, too, while
Fig. 47
= 03),
Po
lies
02,
be nearly equal.
3, will
is
If i
dis-
229
49)-
When
does Po
lie
that
is,
if
will
i.e., jSi,
a^ of
evident that
is
ai (the exterior
we may
of the
now almost
i, is
Erect a
tritri-
angle similar to the weight triangle upon each of the three sides of the locational
triangle.
The
circles described
232
long as the angles of the weight triangle are smaller than the cor-
i8o
if
tti,
then Po
is
6. Position of
triangle.
We
Fig.
Fig. 49
from
What
When
happen
when
aj.
if a^
the value of
02
plus
a^,
71 has
become
equal to 180, in other words the weight triangle has shrunk into a line
(Fig. 50). If
fli
ai> 02+^3, no
triangle can
MATHEMATICAL APPENDIX
233
be constructed out of
exist.
cases,
is
cases.
Comprehensive recapitulation.
Characteristics of the
be characterized as follows
First,
weight triangle
dierent
ties which
may
Po hes in the
exists,
ways
in one corner.
is
Po
Fig. 50
it re-
two
first
Po
lies
Let us
cases.
tti)
other two
^2^3 passes
seen in 5, 7i =
this arc passes through Ai and intersects there with the
As long as
if
Po reaches A^ (because, as
circles.
If 71 increases further,
now
we have
lie
in its interior.
falls entirely
The point
of
be a solution of
our problem; for Po remains at ^i. The second case can be recognized
by the fact that one of the circles of construction includes the third
(i.e.,
included corner
^
is
always the
minimum
lies in
its
point.
J 7^
4. -
Po.
is
now
from
234
8.
of the position of
weights
shall
1, 02, j
tions.
Let
us,
We
% fixed, while we change the form of the loca-
now suppose
tional triangle,
remain unchanged,
i, ^2,
and we
shall observe
how Pq
A-,,
A2, fixed;
aa, ^3
exceeds the
sum
Ac-
movements
of A^,
always
lies
lies
is
A^
If,
shown
however, A^
in 4 takes
MATHEMATICAL APPENDIX
235
we know in advance that Po will lie upon the arc A^Ai itself.
The Hne connecting Po with ^3, together with the lines connecting Po
place, as
.42,
Its extension
This reasoning
of the points A-,,
reason
it is
why
is
A^, Po,
M.
2.
and
M should
lie
upon one
is
no longer any
of
analogous.
any
proaching crosses the line going through A1A2 outside of the segment
lies fixed either in Aj, or in A2. But if it crosses between Ai
and A2, Po lies at the point of intersection of A^M with the arc as long
as A^ has not reached the segment of the circle subtending ^1^2. But
AiA2, Po
as soon as ^3 enters into the interior of this segment, the point Po will be
While A^ changes
straight
interior
10.
line
and
its
to the
A^ changes. One and the same position of Po may correspond to very different positions of A^, as has just been seen. But
position of
show
if
(Fig. 52)
Ay We
we connect by a curve
of transportation.
all
will
those
These curves
233
236
plane extending above the straight Hne going through 1A2. In the
before-mentioned angular spaces at Aj and A2 they are apparently concentric arcs around Ai and A 2 respectively. In the main space lying
between these two we have to distinguish again the segment from the
exterior. Within the segments we get elHptic curves; but in the exterior one curve results from another if we move its points the same
distance upon each of the straight lines through M. At the Hnes sep-
^Ai
-r^"
1^ 11 10 9
10 11 12
Fig. 52
II.
Two
locational triangles in
mutual
relation.
^Two
locational
we shall designate these points as Po, Po- We shall assume the locations A1A2 and ^3^2 and the two sets of weights a^, 02,
3 and a'l, a'2, a'^ as given. The points required are Po = ^i and Po = ^3
in such a position that total costs of transportation become as smaU
of this quality
234
combined
A2 or with A.=Fo.
then
We
is,
for example,
Po=Ai must
lie
therefore either
MATHEMATICAL APPENDIX
237
have A'l given at once, or the two places of production are combined,
which would mean that one place of production for four given points
would have to be found. Separate places of production located elsewhere than in the given points are only possible, therefore, if both
weight triangles
exist.
Under
A'^Az exist as
A,l
9.
We
get the
238
Fig. 52)
will
itself
A'^,
A2 respectively
exceptions are therefore of a more simple nature than the regular case
for
235
In
spite of
the fact that generally speaking the essential part of the problem and
the principles of
figures with
its
corners,
it is
simple rules for construction even in the next higher case of the quadrangle.
It
is'
(if
if
we
let
in
aU
weights corre-
any
minimum
point.
sten Standorts einer gewerblichen Anlage," in Zeitschrift des Vereins Deutscher In-
genieure (1882), pp. 107, iio-ii. In this short essa}figuring out the
minimum
points
is
him
any number
of corners.
After having arrived at the conclusion that "the kilometric costs of transportation
must hold each other in balance at the location of production," he finds the
point by constructing a triangle similar to the weight triangle upon the
A1A2 of the locational triangle. He then describes the circle around this triangle
minimum
side
and connects the third corner O of this triangle with the third corner of the locational triangle, A^ (it will be observed that this involves the simpnf3dng assumption
that A^ is always the center of consumption, while the reasoning of Pick is entirely
independent of the question as to which of the three points is the center of consumption) The point Po at which this connecting fine intersects the circumference
mentioned
of the circle is the required minimum point. Launhardt calls the point
above the "pole" of the locational triangle.
Using the theorem of Ptolemy, Launhardt proceeds to analyze locational
.
(cf.
Fig. 53A).
He
thus re-
places both Ai
and
for
MATHEMATICAL APPENDIX
239
tional figure,
sum
if
it
construct a "pole" for A2 and A^, and then construct another "pole" for Ai and 0.
The line connecting this second pole Q with A^ will, Launhardt believes, give the
it
it is
A,
As
Fig. 53 a
what
basis these
the fundamental
in
obvious objection to
exist
it is
that
it
first
a "pole" O' for the points Ai and A^, and by then determining the location Po
is
is,
minimum
as a matter of fact,
still
Was
this fact in
Ai and A2.
Sozialwissenschajt
limitations
Editor.
240
II.
The concept oj
I.
transport weights
and
still
fl
the isodapanes.
are
known and
will
of production gradually
is
the
any
If in
be incurred. It
is
tion far
ascertained
may
minimum point Po
any and
all directions.
we move
and
Fig. 54
238
in Po,
and we
loci for
will
any amount
it is
loci in
Consequently there exists not only one such locus, but a closed curve
around Po which consists of all the loci having equal costs of transportation. Such a curve (curve of equal transport costs, level curve of
transport costs, isodapane) will exist for any value of total transportation costs, provided only that such value
The
is
minimum
is
minimum.
way
in
which
(cf.
Figs. 55-58).
Po and
loci
costs are
approximately circles.
far
away from
MATHEMATICAL APPENDIX
241
Fig. 55.
Isodapanes
I.
will
around Pq as center.
Ratio of weights:
by Mo,
3, 4, 5.
their increment
not
differ
very con-
If the radius of
The minimum
such
costs of
next by m.
circle is
duction upon
its
i?(ai+2+3+4
because
it is
.)
ton-miles,
we
designate the
all
sum
fli+2+3+^4
that
is
moved
(locational weight),
and
we can
242
Fig. 56.
Isodapanes
II.
Ratio of weights:
3, 4, 6
M,
Fig.
57. Isodapanes
III.
Ratio of weights:
3, 4,
MATHEMATICAL APPENDIX
formulate the following rule:
duction very far
away from
The
243
by
multiplying the locational weight with the distance of the place of production from the minimum point: GXR.
If
drawn
Fig. 58.
the increment of
i,
is.
Isodapanes IV.
Ratio of weights:
3, 4,
the smaller
is,
is
12
same increase
of
RXG.
3.
239
Smaller values of the transport costs. The descent of the transporta-
tion costs.
If
we pass now
wiU
differ
minimum,
i.e.,
244
by lo
we
if
leave an
is 5
If,
10 ton-miles;
if
mile are
2 ton-miles. If
away from Po
of this value:
The
we can
amount by which
is moved
us imagine that
in space,
In this
and
all
this descent.
costs.)
Let
is
we had
possible position of
240
the
transport costs,
when
first
we caU
way we
sum
shall get
of
where
a point
The lowest
lies
pane.
it
The
steepest ascent at
The
is
if
is,
we move away
of the isodapanes,
of
involved
is
this
concept
may
suffice here.
K decreases fastest.
In truth what
-^
is
of the trans-
MATHEMATICAL APPENDIX
given in
If
I, 7.
Po
245
lies in
away from Po on
e.g.,
all sides,
that strictly speaking the descent has the value zero in Po.
is
true
when Po
But
it
the interior.
But
The same
is
first
the 10 ton-mile
if
first
sum
isodapane, in so far as
much
closer to
Po than
it
it
runs
does in
M\
Fig. 59
The
sum of
the others.
of a
very shallow depression which in the case of location in the corner wiU
be somewhat steeper outside than inside of the figure. In the case of
considerable weight at one corner, however, the surfaces will exhibit
a clear idea of
all
The
Figures 55-58
different assumptions.
III.
I.
AGGLOMERATION
quantum
diagram.
its
of production
(ag-
quantum
of production
r, if
the econ-
omies resulting from the agglomeration are greater than the resulting
increase of costs of transportation.
is
The
latter
is
easy to calculate. If
amounts
to
Arm
^r
ton-miles, or
ton-miles.
result
down
in a tabular
of daily
product which
241
246
occur for each and any amount of agglomeration. Such economies are
We shall call it
the function of
by a geometrical
of intersection of
segments
line
M;
economy
we may
it
in
very clearly
By
present
M.
it
Then we
nates.
this operation
we
raise
it
a perpendicular at
Fig. 60
economy.
2. The basic formula of agglomeration. The function of agglomeration.
M
If
is
the
quantum of a large
produced by agglomeration
will
be
(M)
and
therefore
M <j>{M)
242
larger unit,
we
{M-{-m)4){M-\-m)
quantum
of production
economies
MATHEMATICAL APPENDIX
247
as this value
Arsm
(cf.
is
is
We
get therefore the following equation for calculating the largest distance
(M-^m)<l>(M-\-m)-M(f>{M)
considerable,
it
M as well as m.
If
m were at all
SiM)
Fig. 61
of
is
function of
let
of
m,
it
becomes a
M<f)(M),
(M+m)<t>{M+m), (M+2m)4>{M-\-2m)
big
gnomon, are
M alone; but
M.
gnomon
(M-\-2m)4>(M+2m)-M(t>(M)
is
The
248
{M-^m)<i>{M-\-m)-M(j>{M)
243 as
part
its
2m
and
equation
this
'
is
we have
asserted.
The
function
.^.
shall
is
^ {M^m)4>{M^m)-Mcf>{M)
now transformed
into
AsR=J{M),
and
quantum
is effective, is
Diagram
clear survey,
we
rate.
shall
as the function of
it is
economy before,
is
In order
to get a
function of agglomeration,
In this diagram the perpendiculars upon the axis raised at the extreme
have the length /(JW). Above a small segment
points of the several
M,
laid out
is
244
We
will
mf(M) = {M-\-m)<l){M+m)-M4>{M)
MATHEMATICAL APPENDIX
If
we now
that
it is
The value
of the
of this plane
omies of agglomeration at
M.
M;
It equals
Mc}>{M)
Finally
62) the
which is
diagram and the ordinates, we can see
possible to conceive it as being divided into a whole series
249
50
4.
formly
Agglomeration of small units of production which have been uniLet us imagine small units of production which are
distributed.
it
will
If
we wish
to calcu-
agglomeration,
we must keep
in
mind that
itself
amount
jTjQ
53
This we shall
call
is
produced per
density of production.
up
designate as p the
which
245
just
We
of daily production
has absorbed
all
If
then
production
must
p.
R must be
the formula of
calculated from
ttR^
P=M
irp
We
thus get
ARs=f{TrR'p)
or respectively
As
From
this equation
possible only
if
we
shall
irp
Vf=/(^)
we have found
is
cates the
amount of
apparently be
0^
M'
number will
MATHEMATICAL APPENDIX
5. Ascertaining the
251
problem
is
now
to determine
jIs
VM=f(M)
Virp
We
shall
of
f{M) by co-ordinating
to
M the ordinate
^^
1/.Trp
(Fig.
64).
The
called parabola.
points which
AM)
Fig. 64'
curve
off(M) and
There
right
is
never
fulfilled
from
it.
In
and always
N}f(M)
'
2p=
is
TTp
246
52
is
impossible.
Second, the curve of f{M) may in the beginning run above the
parabola and then cross it at some place remaining beneath it after
that.
is
indicated
by the
curves.
The
it
INDEX
Agglomeration,
20
ff.,
24, 35; Alfred Weber's theory of, 12472; analysis of agglomerative and
deglomerative factors, 124-34; causes
126
of, 3, 6; definitions,
f.
Mathemati245-51; and
WUam
Englnder,
Y., vii
Oskar,
xxii
xxvii
n.,
Enviromnent,
117-20
introducing the
Equilibrium: in constructing
of, xiv,
basis of material supply, consumption, and labor, 37 ff.; the consideration of the "forces of nature," 39 f.
Automobile transport,
its
effect
upon
location, 86 n.
14;
and labor
orientation,
minimum
f.
n.,
xxviii n., 51 n.
Fixed capital, 25
ff.,
30
Mar-
manu-
of, xxviii ff
"General expenses," 28
General factors of location. See Locational factors
Bauer, Paul
S., viii,
Bhm-Bawerk,
227 n.
E., 27 n.
Bcher, Karl, 10
n.,
190 n.
Haig, R. M., 17
Capital. See Fixed capital
Capitalistic
economic order, 26
Chamberlin, E. H.,
HaU, F.
vii
also
f.
28
ff.
Distributive process, 18
S., xvii
Chapin, F. Stuart, 14
Clark, A. B., xxviii n.
Cost: elements
n.
ff.;
ff.
24,
n.
con-
Labor
ff.
253
254
loi;
and cost
of production, John
Mill's consideration of, xii;
rent, Thiinen's theory of, xix
Stuart
and
Labor index,
xxii.
labor costs
Labor organization,
129
development
of,
f.
costs,
Land
rent.
of;
Laws
of
labor
location
n.,
of trans-
238 n.
Laws
of labor orientation, 102-23; character of the industries and labor orientation, 107-17; conditions of labor
environmental
orientation,
105-7;
conditions of labor orientation, 11720; isodapanes, 102-4; orientation of
an
Laws
of agglomeration, 134-62; agglomeration in the case of an increasing index, 143-47; agglomeration with
fixed index, 135-43; agglomeration
and labor orientation, 156-62; agglomeration within transport orientation, 135-56; conditions of agglomeration, 147-53; formula of agglomeration, 153-56
Laws
Laws
Laws
Locus of
227-39
Lardner, xvi n.
Launhardt, 227
of industrial location, 10
ff.;
the
221 ff; the strata of locational distribution and their interaction, 214 ff.
Marketing
factors, 130
Marshall, Alfred,
C,
Marshall, Leon
Mason, Edward,
f.,
xiii ff ;
206-9
xxix
vii, viii
vii
Laws
Material index,
of
Appendix
Mathematical
(by
Georg
Mathematical
solution. See
Laws of
transport orientation
Mill,
Minimum costs.
See Points of
minimum
See Points of
minimum
costs
Minimum point.
costs
of location, xxvii
National disposition, 14
Natural factors and orientation of industry, xxix, 21
ff.
INDEX
Parsons, Talcott,
vii,
226 n.
Pick, Georg,
227
ff.
viii,
C,
Pigou, A.
42
xi, xxvii,
n.
255
32
28,
xxiv,
vii,
f.;
use
Roscher, W.,
xvii,
Ross,
Edward
Salin,
Edgar, xiv
A., xvii
xxvii n.,
n., xvii n.,
172 n.
ff.
and
their
88-89
effect,
xiv, xvii
xii,
Political interferences, 14
Predhl, Andreas,
163 n., 172 n.
Ricardo,
Product
Schumpeter, Joseph, xi n.
Shipping costs. See Transportation costs
half-finished,
74
Productive advantage, 18
Productive process, 18
ff.
ff.;
and
distribu-
interaction of the
independent, 196-21 1; organization of
the stages of a given, 174-96
tion process, 25
ff.;
Produktionsstufengliederung,
also Stages of production
173,
See
xxiii,
xiv
38
n., 225,
226 n.
Sprachgeist, vii
xii, xxi,
xxxi,
31
f.
through)
koezient),
manufacture
162-66; forms
(Formof
ag-
Regional factors and orientation of industries, xxi, 20 ff., 24 ff., 34, 124
of, 20, 21;
74
ff
f.
"Realistic" theory, 12
Rent: cost
Sombart, Werner,
f.
Real estate, 25
ed
xi, n. 5,
Social factors
try, 21 ff.
Sorokin, P., 14
Profits, 28
19, 20,
"Situation rent," xv
Smith, Adam,
vii,
42
n.,
43
n.,
46 n.
of,
ff.
Theory
of location: importance of an
i; limitation to a
theory of the location of manufacturing industry, and reasons therefor, 3;
methods employed, 6; results, limitations of, 12 ff., 212 ff.
economic theory,
256
Theory
Theory
Thiinen,
J.
H. von,
215
n., 220,
2,
xiii,
5,
31
xviii-xxiii,
n,,
38
proximations
to;
Transportation
costs, analysis of
Transportorientierung.
orientation
See
Transport
n.,
223
of, xii ff
Weber, Alfred,
xx-xxx
Wissler, Clark, 14 n.
[PRINTED
IN
vii,
USAj
viii,
xi,
xvi, xviii,
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