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.,
'

X-3105
FEDERAL

RESERVE

BOARD

STATEMENT FOR THE PRESS
For release in morning papers,
Sunday, May 1, 1921.
AN INQUIRY INTO CHANGES IN WAGES AND EMPLOYMENT

April 1, 1920 - April l, 1921
The Federal Reserve Boatd, in connection with its usual monthly
survey of business conditions, bas made a special study of the employment
and wage situation at about the beginning of April.

With a view to as-

certaining the extent to which the fall in general prices has been accompanied by reductions in rates of wages, the twelve Federal Reserve
Banks at tne request of the Board addressed inquiries to representative
employers engaged in typical industries within the several Districts, asking for data concerning changes in wagesand employment.

Returns have

been secured relating to the number of workers and the amounts of the
weekly pay rolls on dates nearest April 1, 1920 and April 1, 1921. respectively.

An endeavor has also been made to obtain reliable estimates

of average percentage reductions in wage rates by industries, to find out
whether such reductions have been made uniforfiUy applicable to all employees
of reporting establishments, and if not, what have been the variations in
the percentages of reduction and how different groups or classes of workers
nave been a-ffected.

The fact that the inquiry has been conducted. by each

Federal Reserve Bank for its own District will also throw light on the
varying extent to which workers in different sections of the country have
been affected by the reductions that have been instituted.



X-3105

-2-

In order to prevent incorrect deductions from the figures in this
inquiry, it is important to emphasize from the outset, that the figures
throw out little light upon the extent of unemployment, for the reason
that data were collected only from

establis~ents

in operation both in

1920 and 1921) and that closed d.own establisbments were not canvassed.

In industries with highly centralized control, and with a very large
fixed capital, such as the steel industry, the figures may be indicative
of the extent of the

~eduction

in employment for the year, but for the

great majority of industries there is much less connection between the
information here presented and the state of erl!Ploy.ment or unemployment.
Another point that needs to be emphasized is that, generally speaking, reductions in working force affect primarily unskilled or less
skilled workers, since those with more skill or efficiency are retained
longer than the les~ skilled or less efficient.

For this reason, it is

to be expected that a decrease in the number employed will be accompanied
by a

relatively smaller decrease in the pay roll, especially where pay-

ment is by the .piece.

That is to say, when a force is cut by 25 or 50

p0r cent) the remaining 50 per cent are likely to be employees of nigher
grade with a higher rate of compensdtion than those discharged.
from tb.i s, when

a.

It follows

reduction in employ.men t is accompa.ni ed by an equal or a

larger reduction in the amount of the pay roll, reductions in the rate of
pay have occurred.
The inquiry covers establishments reporting 1 1 303,792 employees on the
pay roll on d.a.te nea.rest April 1, 1921, with a. total weekly pay roll of
$36, ?26) 380,




-3-

::'C-3105

The table given bc;lO'N shows for all reporting establishments, by D_istricts, tne nurnber of employees covered by tne inquiry and tue total amounts
of the v1eekly p-.1yroll for Sl:)ecified dates in 1920 ci.ni 1921

respectively~

In ev0ry District, tnv reporting establisbrr.ent3 record decreases irt nurnbers employed as compared wi tb. the preceding yecr

j

r:=mc;ing fron 6. 2 per

cent irt District No. 12 (San Francisco) to 52.5 per cent in District No. 10
( Ka.ns.J.s City).

In all but tbree Districts, ti:l.e sl::;.'irJlcage in the amount

of. tne :pay roll .was been percentually even greater tb.an the reduction in
nUDb~rs

· e::;rployed. ..

In District No. 12 (San Francisco), however, the.

amount of t::.e pay roll incre-.1sed. 5o 3 pe;· cent c.nd in Tlistricts No. 2
(New York) ani No~ 11 (Dallas) the decreases have been less than the percentc1ge drop in numbers of er.1ployees.
bers employed

The

percent~ge

for the country as a whole was

25

reduction in

nu~-

·"Per cent and the re-

duction in the amounts of the weekly pay roll was 29.8 per cent.

It is

fairly apparent therefore, that very general reductions in rates of wages
~ve

occurred, although the sharper percentual drop in the amount of the

pay roll wouli be parti~lly accounted for by tne fact tbdt some establishments have




curt~iled

working hours.

.

:No. of employees:No. of employees: ArHount of pay- :.Amount of -pay-: 1 of decreasJ : 1 of decrease
:covered by this : covered by this:roll for weak :roll for week :in number of em-:in total amount:
:re-port on pay- :report on pay- :ending on date ~ending on date :ployces reported: of pay roll
:roll date near- :roll .date near- :nearest Apr. 1, :nearest Apr. J,:
«
1 21
1 20
:est Anril 1 1 20:estA ri1 1 1 21!
..
. 22.6
$11,037,818
:
No. 1 - Boston
38 ,850
17.5
~8 .539,997
318,973
.
. 10,824,000
2
8,912,400
18.1
:
-New
York
372,416
17.7
305-.152
" -Philadelphia
23,2
2, 675,494
140.101
107,625
34.3
4,069' 574
"n 34 - Cleveland
3,213,877
203,061
114)078
6,994,400
43.8
54.1
District

.

..

.

"
"
""
.

5 -Richmond
6 - Atlanta
7 - Chicago
8 - St. Louis

"11 " 12 -

"" 109

61,284

-




33,917
31,347
7,582
89,977

23,846
14,837
6,307
84,412

2(:

Minneapolis
Kansas City
Dallas
San Francisco:

Total for all
districts

343,544
47, 5~3

.47 t 784
12,907
230.681
37,140

.

1 0{5

1,737,717

.
'

1,303, 792

..

1,5&6,993
497.472
11,553,620
1,049,195
976,971
641,565
170,839
2. 877,016
52,236,463

.
..

.. :
«

•

..

.

..

..

1 of decrease
(•) or increase
(+) in average
pay per employee

-14
...18

1,019,434
242,913
7,339,275
675,142

22.0
35· 7
32.9
2],.9

35·8
51.2
36.5
35· 6

-12
-24
-18
-18

646,981 :
279,243:.. ~
151,210
3,030,414 :

29.7
52·5
16.8
6.2

33.3
56·5
11.5
+ 5·3

- 7

:

';

- 7

-36
+ 4
+6

·~

,,

~~
·5

·0

36,726,380

25.0

29.8

- 6

The totals given in the table will not in all cases correspond with those published
for the several Federal Reserve Districts as in sona cases supplementary returns
were received too late to ·be incorporated in the general report. In one instance,
returns received directly have been added to totals obtained from the district..
A
certain arr~unt of reclassification of industrial groups has also been undertaken
for the purpose of securing greater uniformity in the general report.

/

; !~~

'1

490

X-3105
-4-

The last colurnn in the table indicates the percentage
reduction in average weekly pay per employee for the estab;...
lishments included in the study.

It will be seen that in

Districts No. 11 (Dallas) and 12 (San Francisco), there has
been an increase in the average compensation of employees in the former of 4 per cent, and in the latter of 6 per cent.
Such increases are not inconsistent with the decreases in
employment of

6/2 and 16.8 per cent, respectively, even though

.

may

no increases in rates of -pay rray have occurred. They/ merely

-

'

represent the higher average earning capacity of tho.se retained in service.

In District No. 2 (New York) there was

no noticeable reduction in the average pay per employee.
In all other Districts, material reductions are noted, ranging
from 7 per cent

in Districts No. 9 (Minneapolis)

and No. l

(Boston) to 36 per cent i:-1 :8-:.s'~ric~. No. 10 (Kansas City).
Another table showing the changes in employment and. in
amount of pay roll, by the !)rincipal industries,

..




follows:

·.
X-3105
SUMMARY BY INLUSTPIES FOP UNITED STATES
I

Number of Emp1oyees on "Payroll

LC'\
I

1g2o

no

Cottop Textiles ......... ws,
'i'!oolen Textiles ........• 26,727
Sil1r Textilas ........•.• l},U26
Clothing ...............• 43,208
Boots and Shoes •...•.... 59,103
Lumber
20,870
... '
J3uilding Materials .•...• 21)052
~uilding Construction •••
21,305
"Pa-per, •................ , 26' 869
Meat "Peel: ing ....
• 83,166
Iron & Steel ...........• 168,751
Automobiles •...........• 84,&45
Farm '~1achinery ... , .•.... 21,5S6
Electrical Goods ..... , •• 50,588'
Coi?~~;er . .................. , ...
26,960
Oil., . ................ , .... 22,6!+3
Rubber .•....... , ...... , . 57' 711
Printing •..............• 14,202
Chemicals •.. -....
12,813
Shi :pbuil ding. , ...
..... 32,453
Tobacco Manufacture •••.• 29,849
Public Utilities •..•••.. 320,820
.,

••

I

•

•

•

•

t

..

'

....




f

•

'

•

Arr~unt

1921

f Change

88,884

- 18.2
- 11.0
- 10,4
- 22.6
- 22.3
- 2..{. 8
- 33.4
- 6o.4
9.8
- 22.4
- 41.5
55.2
- 37.2
- 26.5
- 38.3
+ 3.0
- 64.0
-11.4
- 28.2
- 12.0
- 18.6
- 6.4

23,784
ll; 683

33,417
45,950
l'),C63

14.028
8,456
24,261
64,532
98,785
36 ,027
13,555
37,164
16,640
23,331
20,798
12,590
9,200
28,564
24,282
3CO, 360

-

-

.•

1920
$ 2 1 699 I 79 b
772,745
•
317,697
1,462,219
1,644,093
638,977
697,185
471,246
705,259
2, 280,350
6,019,819
3 ,065, 754
350,958
1,557,510
888,378
803,384
1' 646,346
4791738
465,055
1,005,161
531.629
10,551,038

!

.

.

4

1- of dacrease
(-) or incre.::.se
~1-) in average
~~Y per e~loyee.

of payroll

lg21
$ 1,819' 749
609,972
266,117
975,287
1;248,072
371,361
416,665
211 f 451
550,120
11774,035
2, 714,773
1,135,616
477.969
1,062,521
453,047
975,518
355,982
441,762
238,081
1,038,729
313,789
10,646,294

(.
-

Change
32.6
21.1
15.6
33.4
24.1
- 41.:;
- 40.2
- 55.1
22.0
22.2
54.9
- 63.2
44.4
- 31.7
- 49.0
+ 21.5
- 78.4
- 7·9
48.8
3·3
+ 41.0.
+ 0.9

-

-

-

- 20
- 10

- 4
- 15

- 4
- 19

-

9

- 14
- 15
- 25
- 17
- 13

-

6

- 18
+ 20
- 41

+ 3
- 28

+ 16
- 28

+ 8

X-3105

-6Reductions in the number on the pay roll were made in all
the industries included in the tabulation except oil, the reduction being smallest (6.4 per cent) for public utilities and
largest ( 64 per cent) for the rubber industry.

.Among the highest

percentages of reduction in employment shown are those for the
autom6bile industry (55. 2 per cent), for building construction

(60.4 :per cent) ar"d :;;or iron and steel.

(~1.5 per cent).

Even

larger reductions in the aggregate amount of pay roll are shown
for all industries,

~ith

the

exceptio~

building and public utili ties.

of printing, ship-

The percerttage of decrease in

average earnings per empluyee varies from 4 per cent in the
silk industry to 41 per cent in the rubber industry.
steel, with a

Iron and

25 per cent .reduction, and tobacco manufacturing and

chemical industries with 28 per cent re&1ctions, are among the
industries showing the largest cuts in wages.
In addition to this general sunmary, there are presented
tabula'tions for the principal industries in each District,
together with such information of non-statistical nature as was
secured.

More detailed information for each District will be

shown in reports published by the several Federal Reserve Batiks .

.·



'!! r

f1!

'.:ld: ';__;;');

X-3105

-7The general t3-ble given above

tn. .·ow;;;

;.-) ll.[;:.:.~ on t.ae extent of the

rate reductions that nave occurred, nor on vQri~tiuns in t~e percentages
of those reductionsw

Nai t.c.0r does it indicate tha cla.s.ses of ''Jorkers

w:to mve been particula.rl y affected.
present3.tion oft£..:; returns for cert-c:in princip<.i.l iniustries within the
t·,velve Federr...1 Heserve Districts is offered. oelow.

Tilis review loes not,

however, cover .:;.11 tne r:;a.teri--1 .:..Vi:iila.ble w.c.icj_ will be presented .dth
-1
',

greater degree of elaboration in the reports "'f t:he iniividua.l Feder;J.l

Reserve .JEinks.
~c..ta

for ir~ortant industries in ~istrict No. 1 (Boston) follow:

Inlustry

Number of Employees
April 1,
April 1,
1920
1921
Cotton textiles
90,041
76,649
Textiles
miscellaneous
10,940
8,208
Textiles finisning
10.578
11,470
Woolen Goods
12,707
11,857
Boots & Shoes
23,093
15,128
Electrical
Goods
19 1 883
15,177
Macbines & Tools 18,531
lb,979
Pulp & Paper
15.911
14,519
Public
Utili ties
119.305 107,253

-

Weekly Pay Roll Percentage Fercento.ge
d.ecre~se
A-pril 1, decrease
April, 1
1921
1920
nos. em"f2lO:ied J22..J: roll
34.8
14.9
$2,292,648 $1,541,457
Ola

139~909

25 .. 0

45,.4

244,793
422.647
634:,715

224,333
324,715
445,520

-+ &.. 4( *)
6.. 7
34 .. 5

8.. 4
23.2
29.8

579,557
567,635
395,924

384,430
254,125
305,744

23.7
40.9
3.7

33.7
53 .. 5
22. s

3,935,324

3,d29,753

10.. 1

2. 7

2~.SS,

In the textile industry there has be0n ..:.. pre.ctico.lly uniforD reduction
of 22.5 per cent in WCJ.gas within recent ::.:onths but in sor_-,e cases this decre..:..se ho.d been preceded. by

cill

increi.:;,se of ..:..bout 15 per cent granted l:..st

June so tl.i..'.t for some est.;;.blisllrnents the net reiuction for tne yed.r is
slightly less

th~n

11 per cent-

In th3 boot

..
(*) Strike conditions prev~iled a ye~r a.go.




~nd

shoe industry there

~s

X-3105

-8With the

exce~tion

of the cases already noticed, it is difficult

to rralre any generalizations concerning the character of the wage cuts
which have 'been put into effect by the various reporting industries.
There has been very little uniformity in these reductions but it is
safe to say that with few exceptions it is generally true throughout
the country that the heaviest decreases in wage rates have been experienced
by unsi:illed or "common" laborers.
In District No. 2 (New York) the following reporting industries
have been selected for es;::;ec:ial corrment:
Industry

Number of Employees meekly 1'ayroll Percentage "Percentage
April 1, April 1, April 1, April 1 decrease decrease
1920
1921
l<020
lS2l nos.emyloyed payroll

Clothing
11 ,92b
Silk
8,906
Autmr.ob i l es
11,519
Boots & Shoes
30,885
Printing & "Publishing 6,592
Miscellaneous Me.tal
~1fgrs.
67,560
Shipbuilding 8r. 'Repairsl2,982
Public Utili ties
10[ ,334

$289,700 $248,700
212,600 17.6, 200
326,100 248) 700
864,800 678,300
241,000 232,800

1l-+. 9
10.3
33.2
15-5
9.0

14.1
17.1
23.7
21.6
3.4

64,200 2,091,200 2,053,000
412,900 220,700
6,645
99,160 3,565,0003,447,000

5-0
48.3
s.4

1.8
46.5

10,154
7,989
7.694
26,105
5.997

3-3

Returns were received from 137 establishments and of this nurrber

55 per cent had ro..ade reductions in wages since A'J:>ril 1, 1920 and nearly
80 per cent of those
uniform basis.

re~orting,

said that reductions had been made on a

VThen this was not the case, unskilled workers had gener2,11y

been the group subjected t·o the greatest decrease.

As in District No. 1

(Boston) no reductions have been rrade in the wages of the boot and shoe
operatives employed by the nine reporting rr.anufacturers.

.·

and

trans~ortation

companies similarly report no reduction in wage rates

and only one of seven other public utility corporations



Four railroad

re~orted

reductions.

,.~ r"",r~

l:i£.:;:__7,)

X-3105

-9In the lastnamed case the average decrease was about

9 per cent. But

~~o

of the eleven renorting clothing manufacturers stated that wage rates had
been reduced, the average decrease being about
within the

grou~s

9 per cent. As employees

just mentioned have scarcely been affected by wage reduc-

tions (while increases have occurred in wages of railway and transport
workers) and as t r.e se grou""Os cons ti tu te a very large percentage of the to tal
nurrmer of worEers covered by the inquiry in District No. 2 (New Yort) it is
not surprising that the percentage of reduction in weel:ly pay rolls as shown
in the general table does not decline as sharply as numbers employed .

.

Tt.irty-seven of the 48 miscellaneous metal rr.anufacturing concerns
stated that there had been reductions in wage rates and in 22 cases these
reductions were uniform.
all 37 concerns.

~no

The average amount of the cut was 13 per cent for

of the four automobile concerns reported a uniform

reduction in wage rates averaging 11 per cent.

Three of the seven reporting

sillc manufacturers had also msde uniform reductions amounting to 12 per cent
in rates of wages.

Four of the six concerns in the

grou~

shipbuilding and

said that there had been uniform reductions averaging 11 per cent.
In only one of the six printing and publishing f~rms had there been a reduction averaging about 12 per cent. In general the decreases reported
appear not to have been so extreme as in other sections of the country.
re~airs

'..

In District No. 3 (~iladelphia) returns have been tabulated for the
following important industries:
Industry
Number of Employees
'Percentage percentage
Weekly Pay Roll
April 1 April 1
April 1 April 1
decrease
decrease
1920
1921
nos. employed pay roll
1920
1921
Iron & Steel
48.6
32.4
58,531 39.558 $1,798,999 $924,581
Cotton
Textiles
141,063 126,545
10.3
5,613 5.170
7.9
V'oolen
Textiles
14.6
6,310 5,386
153,604 127,372
17.1
Sill< Textiles
4,120 3 ~694
10.3
105,097 91,917
12.. 5
42.6
Knit Goods
1, 858 1,067
47,703 22,506
52.8
Leather &
42.2
tea ther Goods 7,409
4,285
208,876 101,690
51.3
8.2
Boots & Shoes
3,785 3) 533
92,123 84,595
6.7
'Printin§ %
~ l~shing

6,329 5,401
'Pu.b 1 lfh l i ties 10,576 10,708



179.705 150;776
3831284 370,851

14.7
+ 1.2

16.1
3.2

.APr·..

,.~

{~·~;t)

X-3105 .

-10-

Of the 96 reporting iron and steel companies, 91 stated that there
had been reductions in rates of wages.

The average red~ction both for

skilled and unskilled workers ranged from about 5 to 25 or 26 per cent.
In cotton textiles the wage reductions have affecteQ skilled and unskilled
workers in about the same degree, the per cent of reductions ranging from
about 16 to 21 per cent.

This was true in the case of wooleu textiles

also, but tne reductions were somewhat less in the case of skilled workers.
In silk textiles the red.u.ction ranged. from about 12 to 15 per cent and
there has been slight iifferentiation between the treatment of the skilled
and unskilled workers4
~

Six out of eight reporting knit goods establish-

menta ata.$ed that there had been reductions of 15 per cent applicable to

\.

both skilled and unskilled workers.

Only four of the twenty-three report-

ing shoe firms had put into effect reduced rates for unskilled workers
ranging from 9 to 11 per cent#

Three of these had reduced the wages of

skilled workers 14 to 16 per cent.

Of the 22 leather firms five reported

no reduction in the. wages of unskilled workers and six reported no reduction in t·he wages of skilled workers.

In the other cas0s average

reductions for both skilled and unskilled workers ranged from 10 to 25
per cent.

The 21 printing and publishing establishments without exception

'

"
\.

r0ported that t4erc had been no change in wage rates to date.

Ten of the

36 reporting public utility companies had reduced the wages of unskilled
labor about 18 pe..r cent, but only three
the rates paid to skilled workers ..

•



compa~:U.es

announced r£¥ductions in

~ (~.~l!\..!

';;J;. <./

•

x-3105

-11-

~

\

For District No. 4 (Cleveland) the following are the principal
industries for which reports have been received:
Inlustry

. .t.S'-'

Coa.l & Col:e
Iron & Steel
Electrical
Machinery
Rubber
Automobiles
Pottery
Public
Utili ties

\'leekly Pay Roll
1, A1~~± 1,
S20

Numter of Er!'!flloyees
4-:~lJ::~b 1, A1ril 1

A~ril

<]21

,.......,

14,071

lS ,391

31,557

13,614

(f3 ~C, 015
1 ,568, 007 523,773

27' 686
-c:7 ,345
25,023
5,532

20,821
13,542
9, 085
5,399

12, .J32

13,043

y

~36,796

'1·

~~,

Percenta.:::;e Percentage
decrease
decrease
nos. e!!lflbyed -pay roll
16 .. 2
+ 16~4

:±3. 7

54.0

838,321 547,991
1,3Sc,234 893,868
831)385 204, S32
1-:::8,830 1'31,947

24.8
71.3
::4~1

25.3
79,7
76.3

2.4

+ 8. 8

391,87G

+ 3.. 1

+ 5. 7

3132,000

Tl:ere Wds o. vary general reduction in wage rates made by inde:pend.ent
steel mills .luring February and Ma.rc:b. wnich amounted to about
d.nd aifec·ted a.ll classes of workers.

~0

per cent

Tne Steel CorporC~.tion, :;.owever, ~.c.d.e

no changes in -.-fa,se scales in its plants.

T:te report from District 1-Jo. 4

(Cleveland.) sta.tes that amor.g the lines covered by the survey, pay rolls
in four reporting lines, namely, manufacturers of women's clotning, pottery,
public utilities and construction collPdnies scow increases in rates of pay.

Tms is due to t:C.e fact t:b.at tnese industries are working unler wage agreements n8gotiated Juring the spring and suraner months and generally coverin; a period of a yeC~.r.

Otnei"'."'ise iecra<J.ses in rates of wages hd ve been

~uite general although there has been no uxUforrr~ty either as regards the

nature of the business, the classes of workers affected or localities.
'

,.'

The

only generalization that can safely ba made is that nco:o:mon 11 la.bor :uas as
elsewhere bad its wages reduced in greater degree thin skillad labor.

In

the case of six rubber companies whose pay rolls show a irop of 71 :per cent
general wa;e reductions b.a ve taken p,;.a.ce in practically all shops, rur.ning

.

from 7.5 to 50 :per cent ~1i average around 24 to 26 per cent.




Practice

't

-12X-3105

been
has lby no maa.ns unifor!D-, however, in th~ casa of the fi Ye re:r::orting autor.;obile fa,ctorias.

Reductiorn of vvage sc..:;.edules rc..1.;L.g

fron~

10 to 30 per cent

b.ave occur£ed L:1 some fct.ctories, wilila in otb.er cases, :'lo c:c..a.r:.ges .:::w.ve been
.:;1.::Ule.

Cor.trary to the usua-l policy, t.b.e lea.st reduction had been Inci.de in

the :r;ay of "common" labor.
Tne re.iuctions in wa~.;ls paiJ. by reporting establisnwe;.J.ts in tb.e sout~ern
iis'cricts L1a ;e been ieciJ.edly more fa.r-reacning t.:1an irJ. ot4er parts of the
country a.nd the cuts in the rates paid to "common11 or unskilled labor A:..ve been
especially severe.
Tile industries selected for J.etailed exa..Pirution in District no. 5
(Richmol"'.d) are given-c~e1ow:
Industry

Number of employees
April l, April 1
1920
1921

Cotton
Textiles
6,091
.Building &
Construction 4,201
Fertilizer
manufacturors 3,035
Lumber manufac2,002
turers
Glass factories 2,270
Boots & Shoes 1,3:::0
Cocl Corapo..D.ies <1, 986

Weekly pay roll
April 1, April 1
1920
1921

Percentage
decrease
nos. em)2loyed

Percentage
decrease
J2ci;E roll

5,367

$120,816

$68,433

13.6

43.4

1,880

?7,358

32,766

55.2

37.7

2,212

63,301

28,776

27.1

54.6

1, 755
1,818
1.184

43,035
65,092
52,455
253,412

24,056
53,146
39,557
215,146

12.3
19.. 9
11.. 6
14.3

:..,.±. l
18.4
2<1. 6
13.1

-±,.?74

The fall in ro.tes paid by four . .~eportin3 cotton mills b.cl.s been general and

has averaged a.bout 37.4 per cent, ranging from 37 to 45 per centjn the case of
one e.stablisbment.

All out one of eigllt builiing o,nd const:ru.ction conrpa:t1ies r-=··

r;ortei Jecreases ranging from 10 to 50 :per cent.
50 per cent were s tc:t ted to "-PPlY to

11

In

colllffion labor".

t':~o

cases e -treme cuts of

TJ:::.c

fertilizer m.::mufa.cturers show drastic cuts in the wo,,es ol tJ::..e
ers who form the bulk of tile



e~loyees.

from the se ~.en
skilled ,·.rork...

The reductions ''ere approxima te1y 41

-13-

X-3105

per cent while the v,ra;es ·of skilled employees bad not been reduced more
than 16 to 20 per cent.

Five lumber l1ld.nufacturers reported that the rates

of wages paid to skillel workers i:la:i been reduced 10 to 15

per cent while

the unskilled ·,·;orkers heed. iropped about 40 pJr cent and in extreme cases
50 pGr cent.

Of the six glass fo.ctories three Nported no reduction; one

a 10 per cent reduc'Gion for unskilled labor; another, 15 :per cent for yoq.ng

people; ,mother 20 per cent for unskilled, and 10 per cent for sltilled workers,
No reductions are reported by three coal companies and. two boot and shoe
manufacturers have likewise rr.aintained the sdrr.e scale of wag;es,
The selected list of reporting inJ.ustri.:cs for District No. 6 (Atlanta)
follows:
Weekly pay roll
Percenta::e Percentage
Indus try
Number of :Snployees
April 1,
A:pril l,
decrease
decrease
Apdl 1, A_p:.:il 1,
1920
1921
1920
19 21 ·----'n~o:::..s:::..·:...:e:::.:rr::.::.l:'.::::·""l: :. o: :. yeti. .: : . d=-..p£::.:a.: :.'y"--'r=-o::..:l::..:l=-Cotton
~0.2
Textiles 4,110
15.0
$46,014
3.491
~?76, 971
26.1
Lumber
1,197
1,279
15, 5114
+6. 9
21,026
Public
+3. 2
2 .. 4
Utili ties 3,622
94,877
97,920
3,535
As in District No. 5 (Ricbmonl) reductions in ·.:ra~e rates by cotton m.ills
have been extensive, d.l"llounting in one case to 34 :;_:er cent as a result of 3
recent reductions.

In another instcmce, a. uniform reduction of 37.5 per cent

ha.d been put into effect; in t·;vo other Cd.ses red.uctions of 20 per cent ruve
been l1ld.de; and in a third instance one of 25 per cent.

T.uese changes ap-

plied to all classes of help except in one mill w~J,.ch stated that skilled
hands .Ddd. been reduced only 10 per cent.

lJew c:.,rage sc.uedules recently insti-

tuted by re:r.orting lumeer companies :;_:rovile for reJuctions of 30 to 40 per cent
for unskilled labor.

Six street railwa.y and electrical comp~n1es stated

tiut ~~ere bad been some reduction made L1 ·;ic:U3s of '.;r"~ckr.1en and unskilled
labor.




500

_:;_i~-

A compilation of the data relating to some of the more important
industries covered by the report from District

No~·

7 (Chicago) is incl·J.dco.

in tha following table:
Industry

:fumber of employees
April 1,
April 1,
1920
1921

Automobiles &
accessories
48,003
Chemicals •
Paints &
Soap
9,934
Clothing
21,251
Coal Mini.ng
4,338
Contractors &
Builders
11,962
Iron,steel &
brass
18,202
Lumber & Mill
Workers
10,117
Farm Im:plements & Eq_uipment
19,1372
Packers
7a,a74
Public
Utility
30,651

I.

Weekly pay roll
April 1 April 1
l92'"l
1921

Percentage Per.:entaga
dcc:red.se
decrease
nos. employed pay
roll

21,248

$1,808,269 $

682,284

55.7

64.1

5,·1:99
15,781
3,918

299,095
795,059
202,464

142,855
540,673

52.2
32.0

162, 7C5

44.6
25.7
10.7

3,500

261,354

95,591

70.1

63.0

9,8J2

722,572

355,775

45.7

50.8

7,396

32J, 036

196,922

26.9

40.0

12,222
61,515

814,701
2,1'72,257

449,390
1, 705,298

33.5
22.8

44.a

29,201

J.,OJ2,340 1,201,916

4.7

+11. 0

20. c

21.5

In the case of the concerns manufacturing automobiles and accessories
a majority of the e_stablishments report that all grades of workers have been
equally affected by percentage reductions which range from 7 to. 25 per cent
according to establishments.

Sixteen of the nineteen clothing concerns mak-

ing reports, state that there has been no decrease in the rates of wages
paid.

In a limited number of other

to 20 per cent.

decreases have ranged from 5

Of the 61 concerns rna.nnfactu=j.ng iron and steel and brass,

19 report no decreasa in'.v age rates.
from 5 to 20 per cent.
,,

insta~ces

The others record. decreases ranging

No gener.01lizati.or. regaril.ing the class of workers af-

fected is possible as in some cases reductions bave been confined to the

-~

skilled

.~d




in other instances d.pplied to the unskilled.

Manufacturers of

-15X-3105
fa~

implements and

of 84 cases.

e~uipffients

report no decrease

~n

wage rates in 16 out

In other instances decreases range from 5 to 25 per cent.

As a rule reductions have been

unifo~

within establisbments4

Where dif-

ferences exist, however, the reduction in the rates paid to comrr1on laborers has been greater.

Three of the 17 reporting packers state that there

have been no decreases in wage

rates~

varied from 8 to 15 per cent.

Contractors and builders report decreases

In tae other cases reductions have

for 21 out of 31 reporting firms, the
cent.

de~reases

varying from 10 to 25 per

Sixteen of the 26 reporting public utility companies state that

there has been no change in wage rates.
have varied from 17 to 30 per centto trackmen and

11

In the other instances decreases

Reductions have been largely confined

common 11 laborers.

District No. 8 (St. Louis)
A table snowing changes in numbers employed and in pay roll for specified industries in District No. 8 (St. Louis) follows:
Industry

Number of employees
April 1,
April 1,
1920
1921

\7ho1esa1e
Hardware
3, 094
Stove l\1anufacturing
2,712
Building Materia1s
2,350
Chemicals
Paint etc. 1,695
Clothing & Dry
Goods
4,084
Printing
1,524
Iron & Steel
products
5,971
Public
7,417
Utili ties




Percentage
Percentage
Vleekly pay roll
decrease
decrease
April 1, April 1,
nos. employed :12a;y roll
1921
1920

2,553

¢,117,051

$111,229

17.5

5. (j

1,211

88,322

24,589

55.. 3

72.2

1,208

63,421

28,886

48.6

54.5

1,154

36,293

27,522

31.9

24.2

3,320
1,181

94,447
50,338

81,013
39,422

18.7
22.5

14.2
21.7

4,295

l50,726

94,070

28.1

37.6

7,590

261,611

296,222

-2.3

....13.2

X-3105

-16-

On the whole redur.tions in Wl'l.gcs have not been so numerous nor so

great in District
east, and where

No. !3 (St. Lou:.s) as in the sections to the south and

redu~tiClns

haue Gccnrred, the skilled labor has not been

affected in very m8ny insta.nc'2"l.

Only

11

corr.mon 11 labor was affected

by

reduction in wage rates rrade by 6 of the 7 reporting concerns engaged
in the production of building materials,
per cent coveripg all workers.

Cuts varied from 10 to 50

Only one of 6 reporting stove manufac-

turing concerns reported a reduction in rates.

For wholesale ha1dware

establishments no reductions in wage rates are recorded although one is
in prospect,

Of the fourteen es tablishrnents engaged in the manufacture

of iron and steel products

9 report no

chan~es

in wage rates, w!liJe in

the case of the others decreases range from B to 25 per cent.

About

two-thirds of the workers covered by reports from clothing and dry goods
houses had had their rates of wages decreased 10 per cent.
cases no change had been made.

In the other

Wanufac turers of chemicP.ls and paint

announce no reduction except in one instance where a 10 per cent drop
was made.
District No, 9 (Minneapolis)
Details for a gro~p of the leading reporting industries in District
No.

9 (Minneapolis) 1are given in the accompanying table:

Number of employees
Weekly pay roll
Ppril l,April 1, April 1, April 1,
}q2l
1920
1921
1920
Knit goods
3,520 3,229
$ 59,285 ~ 54,104
Mining
14,828 8,to7
229,296
501' 632
Public Utility 6,05!3 5,864
220,198
202,115
Industry

Percentage
Percentage
decrease
decrease
nos.e!T.l]2loyed ::eayroll

8.3
41.9
3-2

8.7
54.3

+ 9.0

The greatest reduction in wage :cates occurre·i in the case of
tion companies which showed reductions of 20 to 30 per cent.

constru~-

Reductions

varying from 15 to 20 per cent were rrade by mining and milling companies.



-17-

X-3105

Two out of 3 publ$c utility companies reported increases in wage rates, in
one case amounting to 10 per cent.
District No. 10 (K.§n~§&J:it.J1
The table wh~'i.cl·• :i"ol: 0'~':~ si ves rdums in some detail for the principal
mining industries of lii::nrict No. 10 (Kansas City) and for the packing
ind.ustryi
Industry

Number of employees
April 1, April 1,

Lead ~ Zinc
Smelter
Meat 'Packing

1920

1921

8,900

2, 780

4,292

3,591
3,016

6,1+13

•

Weekly pay roll
.Aptil l, April l,

Percentage Percentage
decrease
decrease
1921 Nos. employed pay roll

1920

*267 ,ooo $58,380
210,827 107,458
108,093 67 737
I

78.1
49.0
37·3

68.7
44.0
30 .. 0

The decreases in rates of wages paid to lead and zinc miners have been
especially severe being approximately

33·1/3 per cent to date. Wage re-

ductions have been unifor.m, but where outside labor enters,as carpenters,
bricklayers and machinists, the extent of the reduction is not shown in
the reports~

In the Colorado metal mines for which more specif~c data are

not obtainable, it is estimated that o~y about 4,000 men are employed as
compared with a normal number of 10,0CO.

No exact figUres as

io

the num-

ber of men employed in the smelters are available at this time, but it is
.known that the smelters are running at a very much reduced capacity and a
number are shut down entirely.

The minimum wage per day at the mines is

now as follows:
Leadville
~4.00
Cripple Creek 3-50
Silverton
4.25
Teluride
4.oo
The wages for more skilled men run up to

~1

and $1.50 more than the minimum.

Thee;e figures represent a flat· 50¢ reduction since ·the first of the year.
In the smelters the minimum wage is $3.00 and the maximum $5-55·

It re-

presents a cut of 10 to 15 per cent since

It is




~he

first of the year.

•
-18-

X-3105
stated that

efforts to readjust the situation in meat packing

nou~c::;

at packing centers of this District have resulted iri a recluction of eq··
proximately 30 pet eent in the number of employees at these
in the year.

p~.a.nts ~rlth-

There are probably now about 35,000 employees at the

larger plants in the six packing cities of Kansas City, Oklahoma City,
Omaha, St. Joseph, Denver and Wichita., compared with approximately
50,0CO employees on April 1, 1920.

On ~~arch 14 of this year there was

inaugurated- a reduction
of 8 cents per hour
for all hourly workers and
- .
.
,

'..

12~ per cent on piece work.

employees have made

an

The scale is now in force although the

appeal to the United States tabor. Board.

In the

bituminous coal field there has been no reduction of wages as the eontract between the United Mine Workers Organization and the Southwest
Interstate Coal Operators Association does not expire until April 1,
1921.

On April 1, 1920 the number of men employed in the four states

was approximately 32,000 and it is assumed that the number on the pay
rolls on Ppril 1, 1921 closely approximates this number although the
mines are being operated at less than one half capacity this year,
whereas a year ago they were operated a.t more than three-fourths full
capacity.
~istriet

No. 11 (Dallas)

Twenty-eight replies to

questior~ires

sent to different counties

in the State of Texas making inquiry concerning changes which had been
made in the wages of farm labor were received.

Of

these~

17 report

reductions of 50 per cent in rates; 7 report a 35 per cent reduction,
and 4 a reduction of 25 per cent.

Twelve building contractors reported

that there had been a reduction in the wages of non-union skilled



.

.

.•.

~'

-19-

X-31C5

mech9.nics of about 10 per cent while the wages of unskilled ;vorkers
fallen about 25 per cent.

h.::~·~

There had been no reduct icon in the sea:,:; '-'··

wages paid to union labor.
District No. 12 (San Francisco)
Returns from District No- 12 (San Francisco) are as follows for leading lines:
Industry

Number of employees Weekly pay roll
.April l, April 1;
April l,
April 1,
1920
1921
1920
1921

Copper Mining
Lumber
Oil Producing
~ Refining
Shipbuilding
Public
Utili ties

12,152
7.554

8,033

22,428
19,471

23,C96
21,919

22,205

24,oo6

4, 633

245,380

$223,751
J,3t!., 359

784,549
592,261

954,826
818,029

+12.6

+21.7
+38.1

~63 ,988

790,548

+ 8.1

+19.1

$386,745

...

Percentage Percentag~
decrease
decrease
Nos. employ- pay
ad.
roll
42.1
33·9
45.4
38-7

+3-0

In District No. 12 (San Francisco) the situation is different from
that prevailing in other parts of the country.

Reporting establislnnents

were employing 6.6 per cent fewer men than a year ago as the number on the
pay roll dropped from 89,977 to 84,412 but pay roll totals increased 6.2
per cent.

The public utility companies re::rort no

of regular employees.

red~lction

in the wages

On the contrary increases in rates have occurred

during the year.

Two companies state that lower rates are being paid

for corrmon labor.

Similarly steamship companies state that there has

been no decrease in rates of wages paid to any class or grade of ememployees, and one finn employing 3,800 men had. made an increase of $2.50
per

~an ~er

week due to premium rates.

There was likewise no reduction

in rates of wages paid by oil producers and refiners.

As these groups

of e·stablishments represent a very lar-ge pe1·centage of total returno,
it is not surprising that the total weekly ray rolls should show an increase.
The lumber companies have all reduced wages in varying degrees, and



11

•

~·.

X-3105

-20as a

rule the cuts have been considerable, rising to 35 or 40

per cent in some cases.

Seven milling concerns also report reduc-

tions effective since January varying from 10 to 12.5 per cent
and applicable to all employees.

A number of

m~scellaneous

un-

classified establishments also stated that there had been reductions.

Reports on wage schedules for ten cOpper mines show de-

creases of from 14.8 per cent to 22.1 per cent for miners; of
from 8.3 per eent to 23.1 per cent for mechanics, and of from
10.5 per cent to 27 .o rer cent for muckers (common labor).
have been decreases in all mines and fo•

a~l

There

classes of labor,

but for common labor there have been greater percentage reductions in most cases than for skilled labor.