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U. S. DEPARTMENT OF LABOR JAMES J. DAVIS, Secretary BUREAU OF LABOR STATISTICS ETHELBERT STEW A RT, Commissioner BULLETIN OF THE UNITED STATES \ Wl A QQ BUREAU OF LABOR S T A T IS T IC S /.............. l l f h *10O M I S C E L L A N E O U S S E R I E S CONDITIONS IN THE SHOE INDUSTRY IN HAVERHILL MASS., 1928 JAN UARY, 1929 UNITED STATES GOVERNM ENT PRINTING OFFICE W ASHINGTON 1929 Acknowledgment This bulletin was prepared by Robert S. Billups and Philip L. Jones, of the United States Bureau of Labor Statistics. ii Contents Page Introduction___________________________________________________________________ 1 Factories that moved, liquidated, or failed_________________________________ 2 -8 2 -4 Reasons for removal_____________________________________________________ Reasons for failure or liquidation_______________________________________ 4 -8 Causes of losses in Haverhill_________________________________________________ 8, 9 Small shoe manufacturers____________________________________________________ 9, 10 Contract stitching shops______________________________________________________ 10 -1 2 Wholesale prices of shoes, 1925 to 1927_____________________________________ 12, 13 Average hours and earnings in Haverhill and other cities, 1928__________ 13 -1 6 Average hours and earnings, by States, 1916 to 1928______________________ 16, 17 Earnings, by occupations, in a busy and in a slack week___________________ 17 -2 1 Employment, pay rolls, and earnings, 1928_________________________________ 2 1 -2 3 Haverhill pay rolls, 1925 to 1928_____________________________________________ 2 3 -2 5 Shoe workers’ unions in Haverhill___________________________________________ 26, 27 Haverhill Shoe Manufacturers’ Association_________________________________ 27 Working agreement or peace pact____________________________________________ 28 -3 1 Union votes to terminate agreement_________________________________________ 31 Haverhill shoe board activities_______________________________________________ 3 1 -6 8 Conditions in May, 1927, by chairman of shoe board______________________ 6 8 -7 2 Conditions in 1925 to 1928, by manufacturers and union officials_________72-81 Strikes and lockouts__________________________________________________________ 8 1 -8 6 Overtime_______________________________________________________________________ 86-91 Production. ____________________________________________________________________ 91-99 Cost of producing and selling shoes__________ ______________________ ____ 99 -1 07 hi BULLETIN OF THE U. S. BUREAU OF LABOR STATISTICS n o . 483 W A S H IN G T O N J a n u a r y , 1929 CONDITIONS IN THE SHOE INDUSTRY IN HAVERHILL, MASS., 1928 Introduction HIS report is the result of the following request to the Secretary of Labor, by the Haverhill Shoe Manufacturers’ Association and the Shoe Workers7 Protective Union, for a study of the shoe industry in Haverhill, Mass.: T H a v e r h i l l , M a s s ., March 27, 1928. Hon. J a m e s J. D a v i s , Secretary of Labor, Washington, D. C. D e a r S i r : W e are herewith inclosing copies of votes of the Haverhill Shoe Manufacturers7 Association and District Council No. 1 of the Shoe Workers’ Protective Union, wherein the parties request the survey to be made in accord ance with the suggestions offered by Mr. Stewart. 1. The manufacturers who are members of the association agree to show to your investigators the books showing in detail the cost of production, the cost of selling, and the cost of overhead. 2. The union agrees to furnish such information as your investigators may need. 3. W e request that the names of the firms investigated be not made public in your printed reports. 4. It is agreed that your investigators may furnish the names of the firms to the local board of inquiry, at the request or with the consent of both parties, with the pledge of secrecy on the part of the members of the board. Very truly yours, H a v e r h i l l S h o e M f r s . A s s n ., F r e d L. C o o p e r , Manager. S h o e W o r k e r s ’ P r o t e c t iv e U n io n , B y J a m e s J. R o o n e y , By President District Council, No. 1. Agents of the Bureau of Labor Statistics were sent to Haverhill. They interviewed various officials of the Shoe Workers’ Protective Union and the Haverhill Shoe Manufacturers’ Association, individual members of the union and of the association, the chairman or neutral member of the Haverhill Shoe Board, the secretary of the Haverhill Chamber of Commerce, bank officials, and other organizations and persons interested in and informed as to conditions in the shoe in dustry in the city. They collected from them and their records such information covering conditions in the shoe industry as was available. The report is based on this information. 1 2 CO ND ITIONS IN SHOE IN D U ST R Y IN H A V E R H IL L Factories that Moved, Liquidated, or Failed ABLE 1 presents for each year, 1925 to 1927, and for the first seven months of 1928, the number of shoe manufacturers in business in Haverhill at the beginning of each year, the number starting in business, the number moving out of the city, the number liquidating or going into bankruptcy during each year, and the number in business at the end of each period. At the beginning of 1925, 108 shoe manufacturers were in business in Haverhill. Between January 1, 1925, and August 1, 1928, 123 shoe factories started in business, 23 moved out of the city, and 106 liquidated or went into bankruptcy, leaving 102 factories in business August 1, 1928. Twelve of the 23 factories that moved located in other cities in Massachusetts, 8 in New Hampshire, 2 in Maine, and 1 in Vermont. The 23 that moved had a daily capacity of approximately 25,000 pairs and those that liquidated or went into bankruptcy had a capac ity of 60,000 pairs— an aggregate daily capacity of 85,000 pairs. The 123 that started in business between January 1, 1925, and August 1, 1928, had a daily capacity of approximately 58,000 pairs. The loss to the city in capacity during the period was 27,000 pairs per day. The 102 shoe factories in operation on August 1, 1928, had a daily capacity of approximately 80,000 pairs. Only 40 of the 102 in operation on August 1, 1928, were in business on January 1, 1925. The 40 on August 1, 1928, had a daily capacity of approximately 47,000 paire, or an average of 1,175 pairs per factory per day. By deducting 40 from 102 and 47,000 from 80,000, it is seen that the 62 factories which started in business since January 1,1925, had on August 1, 1928, a capacity of only 33,000 pairs per day or an average of 532 pairs per factory per day, or less than half the average daily capacity of the 40 that were in business before January 1, 1925. T T able 1 .— Conditions of shoe industry in Haverhill, Mass., January 1, 1.925, to August 1, 1928 Number of shoe manufacturers— In busi Starting ness at beginning in busi ness of year Year ________________________ _____ 1925 1928 _____________ ____ ____ 1927 .................................. ....... 1928, Jan. 1 to Aug. 1__............... .......... .......... Total _____ ____________ _________ 108 110 124 109 Liquidat In busi ing or in ness at bank end of ruptcy year Total in business Moving out of city 126 158 159 131 1 2 10 10 15 32 40 19 23 106 18 48 35 22 123 110 124 109 102 Reasons for Removal T^HE 23 shoe factories that moved out of Haverhill employed an average of 104 shoe workers per factory, the number ranging from 2 in the factor}" with the lowest to 350 in the one with the highest number. The capacity of these factories in number of pairs of shoes produced ranged from 200 to 4,000 per day, Tfye reasons for F A C TO R IE S T H A T M O VED , L IQ U ID A T E D , O R F A IL E D 3 removal as given by the officials of the factories that moved from the city are as follows: 1. High labor costs and refusal of the union to grant a cut in piecework rates. 2. Unfair local competition in cutting the wholesale price of shoes and the playing by bargain-hunting buyers of one factory against others to break down prices; legitimate competition of factories outside of Haverhill with which we could not compete on account of local high labor cost and conditions; offer of capital in the city to which we moved; and lack of cooperation from the banks in Haverhill. 3. Inability to successfully meet the unfair local competition of manufacturers who cut wholesale prices; unable to compete with manufacturers outside Haverhill on account of high labor costs and intolerable labor conditions. 4. Labor conditions in general and primarily the contention of one woman union agent. 5. High labor costs in Haverhill and interference with the progress of the business by union agents. 6. Difficulties with union agent. W e wTere in business 25 years before we moved. 7. High labor costs and local labor conditions. 8. Destruction of factory by fire, and, as an experiment, the desire to try to manufacture shoes in another city where labor conditions were different. 9. Inability to run our own factory without continual interference by union agents. Unfair limitations placed upon the manufacturer by the equal division of work among workers; difficulties encountered in order to get a few hours of overtime work; and in general lack of cooperation on the part of the union. 10. Unsatisfactory local labor conditions. 11. High labor costs; labor conditions; and canceled orders. 12. General labor conditions and high labor costs in Haverhill; inability to compete with near-by factories in Massachusetts and New Hampshire; lack of capital; and poor management. 13. High labor costs and local labor conditions. W e could not obtain a price concession from the union. 14. High labor costs and local labor conditions. 15. Unable to make agreement with the union on prices and conditions in the making department. 16. High labor costs and general labor troubles. 17. High labor costs and principally general labor conditions. 18. Labor conditions. Returned to Haverhill in January, 1928, from a busi ness trip with orders for shoes amounting to $125,000 and found a strike in my factory. I notified my customers of the conditions. They canceled a large per cent of the orders, with such statements as “ I do not understand why you spend several months on the road selling shoes if you have no control of conditions in your own factory. ” I moved to where I do have control of my own factory and am now doing a good business. 19. Piece rates too high in Haverhill. W e could not compete with manu facturers in other sections. Unable to run our factory without instructions by labor leaders. W e could not continue to operate under such conditions and so moved. 20. High labor costs. Inducements of free rent and free taxes for a period of five years by city to which I moved. 21. High labor costs, labor conditions, and unable to meet outside competition. 22. Unfair working conditions in Haverhill factories due to inefficiency and trickery of certain manufacturers. LTnion methods and rules applying alike to such manufacturers and to all others in the city, and fear of another general strike. 23. General working conditions brought about by unfair methods of union agents. Threats by these agents to call certain groups of workers out on strikes if their particular demands were not carried out and also fear of another general strike similar to that in January, 1928. Early in January, 1928, a very important company which was at that time engaged in the manufacture of turn shoes in Haverhill, made arrangements to move to Manchester, N. H., because, as stated by officials of the company, it must have lower labor costs or lose money. The officials also claimed that all overhead expenses had been cut to the lowest point possible. Employees were paid off, 4 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L the factory closed, and all arrangements made to move, even to trucks being drawn up to the factory ready to load the equipment. The firm was important in number of pairs of shoes produced per year and in number of shoe workers employed. It had a ready and regular market for its products and, as it was probably the busiest shoe factory in the city, furnished its workers more steady employ ment than any other factory in the city. The mayor and other city officials, the president of the chamber of commerce, members of the citizens’ committee, officials of the shoe workers’ union and of the shoe manufacturers’ association, and others united in an effort to keep the company in the city. An agreement between the union and the company was made. The company resumed operation with its former force of employees and so contin ued until January 19, 1928, when all employees except members of Local No. 2, turn workmen, went on a general strike. The com pany then moved to Manchester, taking a crew of union turn work men with them, and reports that it is now (August 10, 1928) doing a good business with, according to a news item in the Haverhill Gazette, approximately 300 workers and a pay roll of nearly $9,000 per week. The company was granted five years’ exemption from taxes by the officials of the city of Manchester. It is claimed by the union and confirmed by two of the above-quoted firms that moved from the city that one of the most important reasons for removal is competition among Haverhill firms. It is stated that buyers come to Haverhill, shop around, hunt for bargains and get them, and that this unrestrained competition in the city frequently results in cutting prices too low, ruins some companies, hurts all, and is a menace to the industry. A former manufacturer of men’s slippers who sold them at $1.05 per pair said the cutting of prices caused him to go out of business and also caused the failure of his competitor who took his customers by selling them for 95 cents per pair, or the cost of manufacture including labor, material, and overhead expenses. The same kind of competition probably exists in other localities. Reasons for Failure or Liquidation HPHE reasons for the failure or liquidation of the 106 shoe factories that were lost to the shoe industry in Haverhill between Jan uary 1, 1925, and August 1, 1928, are given below as reported to agents of the Bureau of Labor Statistics. This information was obtained directly from the officials of these companies when it was possible for the agents to get in touch with them, and from other sources, such as shoe machinery and other shoe supply companies if no official could be found and interviewed. 1. Lack of working capital and insufficient experience in the shoe business. 2. The failure of this company was due to the failure of another shoe manufacturer in Haverhill. 3. Returned shoes, many of which were due to poor workmanship and had to be sold at reduced prices. Partly poor management. 4. Mismanagement. Knew very little about the shoe business. Did not last long and did not make more than 100 pairs of shoes dur ing the entire time in business. 5. Lack of business ability, canceled orders, and differences among officers of the company. F A C TO R IE S T H A T M O V E D , L IQ U ID A T E D , OR FA IL E D 5 6. Lack of capital and insufficient experience in the shoe business; unable to compete with outside manufacturers. 7. Lack of working capital and mismanagement. Lost my savings of 20 years and worked one year without any salary. 8. Mismanagement and lack of working capital. 9. Labor conditions and the union drove me out of business. I lost $2,000 in 1927 on account of canceled orders. Conditions are worse than labor costs. 10. Returned shoes, canceled orders, and large allowances that we were forced to make in some cases. 11. Unfair local competition. Labor conditions and lack of co operation on the part of the banks. 12. The union was largely responsible for our financial difficulties. Labor cost was much higher than in near-by cities. Part of the time we were in business we did not belong to the manufacturers’ asso ciation. The union set the prices in the stitching room and higher piece prices were charged to companies that did not belong to the manufacturers’ association than to those who did. 13. High labor costs and local labor conditions. Just couldn’t compete with outside manufacturers. 14. Lack of capital and no business ability. 15. High labor costs, lack of working capital, and returned shoes. Just couldn’t compete with outside manufacturers. 16. On account of high labor costs it was impossible to meet prices of my competitors. Also aggravated labor troubles, so I decided I ’d better quit. 17. Principally labor conditions. Could not compete with outside manufacturers. 18. Our losses were large, due to the union, strikes, and threatened strikes. If prices in the stitching room were not agreeable to the union, the agent would advise us that the prices would have to be paid or they would call out the stitching room on strike. If the fac tory w^as busy there was nothing to do but pay them or have a strike in the factory. 19. Unfair competition with local manufacturers. Was successful in his business, but did not care to continue to combat the unfair local cutthroat competition. 20. Failure due to a fire and lack of working capital. 21. To go into business with another Haverhill manufacturer. 22. After two or three years of incessant labor bickering over labor prices, we decided to liquidate. 23. Lack of experience. One partner had money and the other was an excellent salesman, but they didn’t know the shoe business. 24. Bad accounts and high labor costs. Jobbers who owed us money failed. 25. Lack of working capital and keen competition. 26. Lack of working capital and insufficient business ability. 27. I could not sell shoes in competition with those who purchased raw materials and did not pay for them and in a few years failed because they were underselling their own costs. 28. Unfair treatment by jobbers who would return shoes for little or no reason. In some cases substantial allowances would have to be made. 29. Cancellation of orders by one large company. 6 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L 30. Cancellation of orders in process of manufacture. 31. Labor difficulties and high labor costs. 32. Unable to operate at a profit due to high labor cost in Haver hill. Could not compete with outside manufacturers. Had some bad accounts and returned shoes. 33. Lost about $60,000 due to failure of jobbers to meet their obli gations to the company. Also, some labor troubles. 34. Keen competition, returned shoes, and lack of working capital. 35. Labor conditions and high labor costs, principally the con ditions. 36. Due entirely to our bookkeeper, who defaulted wTith a large amount of our money by padding the pay rolls. 37. To consolidate with another Haverhill concern. 38. Lack of working capital, failure to discount bills, slow' paying accounts, and the fact that the companies from whom leather was purchased charged slightly higher prices. Also some labor diffi culties. 39. Lack of orders due to keen competition. 40. Lack of working capital and inability to compete with outside manufacturers. 41. Lack of capital and insufficient business ability in the shoe business. 42. Lack of capital and insufficient business ability. 43. Lack of business ability, small working capital, and some bad accounts. 44. Lost money through mismanagement. 45. Labor costs; couldn’t get volume and couldn’t compete with outside manufacturers. 46. This company liquidated in 1925 in order to consolidate with another company. 47. Canceled orders, returned shoes, and some bad accounts. Buyers controlled the market at that time. 48. Mismanagement; sold shoes as low as 50 cents under cost of manufacture. 49. The January, 1928, strike found my factory full of shoes in process of manufacture. As a result of this condition my customers canceled many of these orders, which caused very large losses. 50. Lack of business ability. 51. Unable to compete with outside manufacturers. 52. Labor prices were too high in Haverhill; could not compete with near-by towns. 53. Lack of orders; just couldn’t get business on account of keen competition. 54. Made very few shoes; only lasted a short time. Didn’t know anything about the shoe business. One partner was crooked. 55. Lack of funds and business ability. 56. Fire and bad accounts. 57. Failure of another company. 58. Could not compete with outside prices. Went to the shoe board and asked for a reduction in wages, but could get none, so had to close out business. 59. Closed out business in 1928 because of labor troubles which caused delays in production. These delays resulted in cancellations and consequent failure. F A C TO R IE S T H A T M O VED , L IQ U ID A T E D , O R F A IL E D 7 60. Couldn’t meet competition on account of high labor costs. Labor conditions could not be tolerated. 61. Generally due to mismanagement. Proprietor was not system atic and had insufficient working capital. 62. Lost business on account of lack of up-to-date business methods in manufacturing and salesmanship. 63. Closed out business in 1926 due to poor management and lack of working capital. 64. Business closed out on account of the death of one of the partners. 65. Labor conditions here and manufacturers who undersold their cost and failed, making their graft in that way. 66. Lack of experience and insufficient working capital. 67. Our main difficulties were with jobbers returning shoes, which was a big drain on our finances. One other difficulty was high labor cost, particularly in the stitching room. Could not compete with nearby cities who worked under different labor conditions. 68. I closed out my business in 1927 because of general labor con ditions in Haverhill. I was unable to tell a workman how certain work should be done and could not discharge a man whose work was unsatisfactory. 69. Quit the shoe business on account of returned shoes, canceled orders, high labor costs, and a salesman who stole $7,000 from the firm. 70. Failure to get reduction in wage rates as promised by certain labor agents on account of low grade of shoes made by the company. 71. Too much cutthroat competition and he just couldn’t continue to compete. 72. Closed out business on account of high labor costs in Haverhill; could not sell shoes in competition with outside manufacturers. 73. Lack of working capital. 74. Failure was due entirely to bad accounts. 75. Lack of demand for quality of turn shoe made. Labor condi tions and keen competition. 76. Labor conditions, bad accounts, and keen competition. 77. Lack of orders, keen competition, and bad accounts. Com petitors sold below cost in some cases. 78. Discontinued business on account of small working capital. 79. Was only in business about six weeks and made only about 100 pairs of shoes altogether. Labor conditions and keen competition. 80. Due entirely to death of one of the proprietors. His widow did not care to continue the business. The remaining stockholders tried to buy her share, but the price was prohibitive. 81. Heavy losses on returned shoes. 82. On account of high labor costs in Haverhill; was unable to sell shoes in competition with outside manufacturers. 83. Labor conditions, high labor costs, and working conditions in the factory. 84. Poor management; bad accounts were also responsible for liquidation. 85. Lack of working capital, returned shoes, and bad accounts. 86. Lack of orders and business ability. Did not manufacture over two or three cases of shoes. 87. Lack of business ability and experience, and insufficient funds. 8 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L 88. Mismanagement; lack of orders. 89. Inefficiency; no experience in making shoes. 90. Canceled orders, returned shoes, and also the fact that there was a change in product from McKay to turn shoes. 91. Poor salesmanship, returned shoes, and unfair methods used by customers. 92. Labor costs too high and conditions bad. Lost $50,000 and thought I ’d best quit before I lost it all. 93. Made a cheap shoe and could not stand the high labor cost and sell shoes at a profit in competition with other manufacturers. 94. Mismanagement; made poor shoes and sold to bad accounts. 95. Closed out the slipper business to go into the shoe business. Not much demand for the type of slippers made. 96. Labor troubles, cancellations, and insufficient working capital. Spent most of my capital in equipment and did not have sufficient reserve to do business. 97. Could not compete with outside manufacturers on account of local labor conditions. 98. Returned shoes and bad accounts. 99. Insufficient working capital and returned shoes by jobbers. 100. Only in business a few months; closed up because of lack of working capital and mismanagement. 101. Lost money on canceled orders. 102. Due to lack of working capital, only in business a few months. 103. Liquidated for the purpose of entering business with another company. 104. Cancellation of orders in process of manufacture. 105. Failure due to losses in the Mississippi Valley flood. 106. Small factory— proprietor dead, no information available. Causes of Losses in Haverhill HE loss of business in the shoe industry in Haverhill in factories moving out of the city, in failure and liquidation of factories, in decrease of number of pairs of shoes produced, in number of shoe workers, and in amount of pay rolls or earnings of shoe workers was very largely due to the absence of friendly and helpful coopera tion between shoe workers and shoe manufacturers in a large number of factories and to the need of more effective cooperation between the Shoe Workers’ Protective Union and the Haverhill Shoe Manu facturers’ Association; also to higher wage rates in the manufacture of shoes in factories in Haverhill than in factories in cities near Haverhill and in most all other cities in the United States in which the manufacture of shoes is of material importance. There was in August, 1928, real effective cooperation between the workers and the officials in a few factories, and little or no coopera tion in others in which there was more or less jealousy, suspicion, lack of confidence and, in some cases, the desire “ to d o ” the other side rather than a desire for cooperation and improvement in the industry. More than one agent of the union in speaking of conditions said in substance, “ I would get out of bed at any hour at night, go in any kind of weather t o --------- company and do everything in my power to adjust any and all differences that might arise between any mem- T SMALL SHOE MANUFACTURERS 9 ber of the union and the factory because its officials have at all times been fair with its employees and the union.” An official of a comp&ny employing more than 200 union workers said, “ We employ union workers, pay union prices, and operate under union conditions, and have been doing so ever since we started in business about 12 years ago. We try to satisfy our employees and have never had any trouble that could not be and was not adjusted to the satisfaction of all parties concerned without loss to anyone.” An agent of the union in speaking of an official of this particular company said, “ This company is absolutely fair with its employees and so, of course, the union and union workers do everything possible to maintain helpful and friendly relations with its officials. A short time ago an employee of this company, when spoken to by an official of the company concerning her work, impulsively made an uncalled for reply and left the factory. She came directly to union head quarters, arriving there much depressed and very penitent, told her story to the agent and said she could not return to work in the factory. The agent, after talking with her for some time, said, ‘ Come, we will go back to the factory, everything will be all right after we see --------- and have a talk with him.’ We went to the factory, the worker returned to work and is still employed there.” Small Shoe Manufacturers k LL McKay and turn shoe workers in Haverhill except about 250 are members of the Shoe Workers’ Protective Union. The union is well organized, very strong, controls the labor market in the shoe industry in the city, and can usually enforce union prices and conditions. With these conditions prevailing and generally known in the city it would be expected that any person before engaging in the manufacture of women’s shoes in Haverhill would, as an insurance against loss by strikes, go to the Shoe Workers’ Protective Union and make an agreement and ask that he be furnished the best help available for each department in a shoe factory. Union officials, manufacturers, and others state that except in a very few instances this is not done. The small manufacturer begins in a small way. He opens a shop in a small room in a factory, at home or in a back yard, buys his factory supplies, takes orders for shoes, and contracts the making and stitching. He does the cutting and he and his family do the packing, working long or short hours per day or week as necessary. The stitching in piece price or per pair of shoes costs him no more than is paid by larger factories. He saves much in labor costs, rentals, and other expenses, and consequently can and does undersell manufac turers who operate under union prices and conditions. His business increases from time to time until it is necessary for him to operate a real factory. He then rents a factory and usually in order to get efficient help and avoid trouble makes an agreement with the union and pays union prices. If no agreement is made with the union, agents of the union appear in a very short time and ask for union prices and conditions. On refusal a strike is called and it is announced and published immediately that another strike is on in the city. The manufacturer is usually unable to finish the shoes in process of manu facture and can not fill his orders on time because he can not get any 10 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L other help. His orders are canceled, and he fails or moves out of the city. Had he gone to the union before beginning work the strike and loss of business would not have occurred. Had the union pre vented its members from working at any time for the firm it would not have been charged with having caused a strike and failure or removal from the city. Contract Stitching Shops k VERY large number of the shoe manufacturers in Haverhill l \ have no stitching rooms, the work being given out to con tractors. Consequently, there are many such shops in the city. The contract shops enable small shoe manufacturers to engage in business with little capital, often with not more than $1,000, and to have the assurance of getting the highest class of stitching and stitching-room work at a cost equal to that of the best shoe manufac turers who have their own stitching rooms. Haverhill has a contract stitching shop which is probably the largest in capacity and number of employees in the United States. When working full time and at capacity with its full force of about 400 employees it does the stitching-room work on 10,000 pairs of shoes per day. It was working at capacity in August, 1928. It started in business in 1916 with a force of 2 workers and is now doing contract work for 15 different shoe manufacturers in Haverhill. It was not in August, 1928, doing any work for firms outside Haverhill. Its employees are unusually efficient and skillful due to the great variety of styles of shoes worked on in the shop. In times of slack work there is no reduction of the force. There is, however, short-time work, but this, as a rule, is not less than 50 per cent of full time. Work in the shop is available 52 weeks in each year. In addition to this shop there are from 12 to 15 other contract stitching shops in the city, ranging in number of employees from 6 to 125 or possibly 150 when working full time and at capacity. One reports 50 per cent of its work for firms outside Haverhill, one 15 per cent, and the others little or no work for such companies. In the aggregate these shops employ about 800 or 900 workers when working at capacity. Many of the manufacturers and others who are well informed as to conditions in the industry, report shoe workers of Haverhill as un usually skilled in making attractive, fancy, novelty women's shoes. A number of factories that moved out of Haverhill send work to the contract shops in Haverhill because the workers in these shops are more efficient than those in the cities and towns in which the factories are now located, also because it is cheaper for them to have the work done by contract than it would be to equip a stitching room and organ ize and train a force of employees. Some establishments are not financially able to establish stitching rooms. All employees in the contract shops are members of the Shoe Workers' Protective Union. A very considerable number of the members of the manufacturers' association contend that the union workers in these shops should not do any work for any factories outside Haverhill, especially for those that moved out, and that have no agreement with the union, and pay less for the work in their factories than is paid for the same work in Haverhill. It is not unusual to see an automobile or truck loaded with shoes in process of manufacture drive into the city to a contract shop. CO N TR ACT STITCH IN G SHOPS 11 The manufacturers state that by working for outside shops the union helps competing companies and injures not only shoe manu facturers in Haverhill but the business of the city, and really injures the shoe workers in the city and in some cases other stitching-room workers. The following statement applying primarily to stitching-room work in Haverhill was furnished by an official of Local No. 1 finishers and edgeworkers of the Shoe Workers’ Protective Union: During the past few years several shoe-manufacturing concerns have moved from the city of Haverhill to Boston, Lowell, Manchester, Lawrence, Farmington, N . H . , Newburyport, Georgetown, and other localities in order to avoid complying with demands for wages, hours, and working conditions which the S. W . P. U. thought necessary for the welfare of their membership. Arriving at aforesaid localities it is obvious that they have established working conditions, hours of labor, and labor costs widely divergent from those in Haver hill, paying on essential operations fluctuating prices according to available labor supply. Most crafts are underpaid and work long hours when the employers demand same. Massachusetts laws prohibit female employees working in excess of 48 hours per week, and during seasonable periods these same manufacturers in their frantic and greedy endeavor for production and profits seek assistance from other than their own factory organization for work done by female employees, namely, “ fitting.” These firms have abandoned Haverhill, left stranded a host of shoe workers without jobs, causing an abnormal supply of available labor. Haverhill having a few contract stitching rooms, these were soon overwhelmed with work from factories who are notoriously unfair to organized labor in general and the S. W . P. U. in particular. These contract stitching rooms have expanded and multiplied to such a degree that this locality is fast becoming a haven for any shoe manufacturer from anywhere to get shoes fitted in an emer gency, or for concerns who have left Haverhill to send their morally scab-cut, scab-made, scab-heeled, scab-finished, and scab-packed shoes to be disgustedly union fitted in the nearly 100 per cent S. W . P. U. city of Haverhill. To add to this nausea the notorious scab-herding, labor-crushing concern of ----------- , Boston, who secured an injunction against the U. S. W . of A ., part of our organization, with apparently no trouble, secures all the fitting it wishes in Haverhill by S. W . P. U. members, who are thereby fighting on the side of the boss against their brothers and sisters. It is said that ----------- , in B o s to n ,----------- , in South Braintree, and even the in fam ou s----------- , in Lynn, to say nothing of slave-driving----------- Co., Maine, keenly anticipate the daily arrival at their doors of trucks filled with uppers fitted in Haverhill by S. W . P. U. members. The apparent willingness of Haverhill S. W . P. U. to assist these nonunion parasites has caused a demand for young girls, women with families, and even very elderly women. The young girls who should be in school, the elderly women, and mothers of large families who should never have to work in factories are forced by false economic conditions to do so, and the men are forced to walk the streets of Haverhill so that the nonunion men of Manchester, Newburyport, Lowell, South Braintree, Lawrence, Boston, and Farmington can receive their measly dole. Is this going to end with the men doing the housework in Haverhill and the S. W . P. U. seconding the motion by demonstrating their approval of the openshop policy? W ith the situation as outlined above in mind, Local No. 1 in “ m ass” meeting assembled unanimously indorsed the following resolution: “ Whereas conditions existing in the Merrimac Valley and particularly in and around Haverhill are such as tend to weaken our organization, by destroying the sense of unity among the shoe workers, by fostering an individual selfish jobownership idea as against a labor-union sense of solidarity by supporting and condoning employers who are antagonistic to labor unions, by fostering and aiding scabbery and so smirching the good name of the Shoe Workers' Protective Union as well as working against the best interests of the workers in general; and “ Whereas the existence of these conditions is the principal reason why the shoe workers of Haverhill indorsed and supported the idea of amalgamation and 12 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L unity, believing that only through the realization of such an idea could these conditions be remedied; and “ Whereas no steps have been taken by the National Shoe Workers’ Protective Union, although the organization has been in existence almost five months, which would lead us to believe that the general office does not realize or recognize the importance and urgency of this problem: Therefore be it “ Resolved by Local No. 1, Shoe Workers’ Protective Union, Haverhill, Mass., in mass meeting assembled: That the general office immediately appoint an organizer or organizers to devote his or their entire time to this section, with the object in view of remedying the conditions outlined in the above communication.” Wholesale Price of Shoes, 1925 to 1927 OR many years prior to 1925 the great majority of the manufac turers in the shoe industry in Haverhill produced turn shoes. The city was in those years generally known as “ The turnshoe city.” A short time prior to 1925 the kind or make of shoes in the city was changed to extreme, fancy, novelty M cKay shoes, or, as stated by an official of the Shoe Workers’ Protective Union, to “ millinery for the feet.” There is now little or no demand for a stand ard make of women’s shoes. The experience of a successful retail shoe dealer illustrates the effect of the change from standard to fancy, novelty shoes. He had for a number of years sold the standard make of women’s shoes and had a full and complete stock of that style on hand when the new novelty shoes were introduced. His stock had been bought at an average cost of $5 per pair, and as there were no outstanding bills against him he felt that he was in good condition financially and was well satisfied. His sales, which had been very satisfactory, decreased until he did very little business. He worried, wondered what was wrong, and after some investigation and thought purchased a small stock of fancy shoes and displayed them in his windows. His sales immediately increased. He purchased a much larger stock of the new style and planned to sell his entire stock of the standard make for whatever he could get for them. He had several jobbers come and look these shoes over and make an offer for them. His first offer was 17 cents per pair. He sold them at 47 cents per pair, or at an average loss of $4.53 per pair. Each of the 23 shoe manufacturers in Haverhill that furnished data for this report gave the number of styles of sample shoes made in the factory and the number of styles sold from the samples in each of the years 1925, 1926, and 1927. In 1925 the number of different styles of sample shoes of the factories in Haverhill ranged from 10 in the factory with the lowest number of samples to 5,000 in the factory with the highest number of samples. In this year the number of styles sold per factory from the samples ranged from 6 to 3,295. One manufacturer with 1,000 samples made sales for only 48 of them, and another with 1,660 samples made sales for 1,500 of them. In 1926 the number of styles of sample shoes per factory ranged from 10 to 5,000 and the number of sales from them ranged from 10 to 2,840. One manufacturer with 1,500 samples made sales for only 60 of them and another with 1,549 samples made sales for 1,400 of them. In 1927 the number of styles of sample shoes per factory in the 23 factories ranged from 10 to 5,000 and the number of sales from them F 13 A V E R A G E H O U RS AND E A R N IN G S , B Y CITIES ranged from 10 to 3,935. One manufacturer with 2,521 samples made sales for only 72 of them and one with 1,064 samples made sales for all of them. Turn shoes only were manufactured in 5 of the 23 factories included in the study in 1927 and 1928, McKay shoes in 17, and both turn and McKay shoes in 1 factory. Seven of the 23 factories covered in the report were not in business in 1925 and 3 were not in business in 1926. The average wholesale price of shoes at the factory in 1925 ranged from $1 per pair for the factory with the lowest price to $5.90 per pair for the one with the highest price. In 1926 prices ranged from $1 to $6.10 per pair, and in 1927 from $1 to $6.30 per pair. The kind and average wholesale price of shoes for each of the 23 factories are shown in Table 2. T able Establishment No. 8______ 1011_ 12_ 2 .— Average selling price of shoes at factory, 1925, 1926, and 1927 Kind of women’s shoe made in 1927 Average factory selling price per pair McKay. Turn__ McKay. .--do___ ._-do___ ,__do___ ,-_do___ -_do___ .do. Turn___ McKay, .-d o ___ $2.10 3. 75 2. 00 1.00 0) 0) 2. 29 0) 2. 50 3. 75 2.00 0) $2. 35 3.75 $2. 50 3.75 2. 85 3.84 1.75 2. 55 2. 48 3. 50 3. 00 3. 92 3. 05 3. 05 2. 00 1.00 1.71 0) 2. 45 0) 2.00 Kind of Establishment women’s shoe No. made in 1927 2. 00 1.00 2. 00 Turn.,-. McKay . .do. Turn___ McKay. --do___ r.-d o .-_ . ,Turn___ .do. McKay. ...d o ___ ...d o ___ Average factory selling price per pair 1925 0) 2. 00 5. 90 0) 3.10 1926 $2. 55 $3. 60 2. 55 2. 25 3.50 4.15 3. 75 3.10 3. 50 4.15 4.00 3. 30 3. 75 3. 40 3. 75 0 6.10 2.11 0) $3. 60 2. 55 2. 50 6.30 2.34 3.20 3.50 4.15 3.65 2. 25 3.35 4. 00 1 Not in business in this year. Average Hours and Earnings in Haverhill and Other Cities, 1928 VERAGE full-time hours per week, earnings per hour, and full-time earnings per week for 1928 are presented in Table 3 ' for all the shoe workers of 19 representative shoe manufac turers and of 3 cut sole companies in Haverhill. These averages ear also given in the table for the shoe workers of a representative number of shoe factories in a group of small cities near Haverhill (Lowell, Newburyport, and Georgetown, Mass., and Derry, N. H.) and for workers in factories in Boston, Brockton, Lynn, Chicago, Milwaukee, New York City, Philadelphia, Rochester, St. Louis, and the United States. The averages for the United States are for 48,658 employees of 157 shoe factories in 14 States. Index numbers of these averages are also shown in the table, with the average for the United States as the base or 100 per cent. The regular full-time hours per week in the factories in Haverhill as established by section 5 of the agreement between the union and the manufacturers are 48 except in June, July, and August. In these three months the hours are 9 per day for 5 days, or 45 per week. The average for the city is given as 48, no weight being given to the A 24011°— 29------- 2 14 C O N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L short hours in the three summer months in computing full-time averages for Haverhill or to three months or less in computing these averages for any other locality. Average full-time hours for the United States were 49.1, and by cities ranged from 45.1 for New York to 49 per week for the group of cities near Haverhill. Average earnings per hour for the shoe workers in Haverhill were 69.9 cents, as compared with 52.7 cents for those in the cities near Haverhill, the average for Haverhill being 32.6 per cent more than the average for the group of cities near Haverhill, 31.9 per cent more than for the United States, 3.2 per cent more than for Boston, 13.7 per cent more than for Brockton, 13.3 per cent more than for Lynn, and 9.3 per cent less than the average for New York City. Average full-time earnings per week by cities ranged from $25.78 for Philadelphia to $34.77 for New York. The average for Haverhill was $33.55, or 29.9 per cent more than the average for the group of cities near Haverhill, and 28.9 per cent more than the average for the United States. Average earnings in the table are for pay periods in the busy season, July to October, 1928, and are for factory workers only. Earnings or salaries of officials, supervisory foremen, salesmen, clerks, watch men, teamsters, chauffeurs, and power-house employees were not used in computing the averages The figures for Haverhill represent conditions after the 10 per cent reduction of wage rates in June, 1928. Two of the 19 factories did not receive the 10 per cent reduction. Fifteen of the 19 shoe factories in Haverhill for which figures are shown in the table produce women’s McKay shoes, 3 turn shoes, and 1 produces both M cKay and turn shoes. T 3 . — Average full-time hours per week, earnings per hour, and full-time earn ings per week for shoe workers in all occupations combined, by locality, 1928 able Locality Haverhill, Mass_________ ______ _____ Cities near Haverhill, Mass.1____ ________ Boston, Mass__ _____________________ . . . Brockton, Mass___ _ . _______________ Lynn, Mass______________________ ____ __ Chicago, 111.. _ . . . __________________ Milwaukee, W is. . _ _________ _ ______ New York, N. Y__ _____________________ Philadelphia, Pa________________________ Rochester, N. Y ________ _____ ______ St. Louis, M o ___________________________ United S t a t e s __ ______ ______________ Index numbers (United States average= 100) Average Average Average full-time earnings full-time hours per per hour earnings Full-time Earnings Full-time week per week hours per earnings per hour per week week 48.0 49.0 48.0 48.0 47.9 47.9 48.2 45.1 48.0 48.0 48.0 49.1 $0.699 .527 .677 .615 .617 .641 .538 .771 .537 .581 .542 .530 $33. 55 25.82 32. 49 29. 52 29. 55 30.70 25. 93 34. 77 25. 78 27.89 26.02 26.02 97.8 99.8 97.8 97.8 97.6 97.6 98.2 91.9 97.8 97.8 97.8 100.0 131.9 99.4 127.7 116.0 116.4 120.9 101.5 145. 5 101.3 109.6 102.3 100.0 128.9 99.2 124.9 113.5 113.6 118.0 99.7 133.6 99.1 107. 2 100.0 100.0 i Lowell, Georgetown, and Newburyport, Mass., and Derry, N. H. The averages in Table 3 are for all shoe workers in 19 shoe factories in Haverhill and also for those in the factories in other cities in the United States that were included in the 1928 study of wages and hours of labor in the boot and shoe industry by the Bureau of Labor Statis tics. The averages in Table 4 are for the employees in each of 14 of the most important occupations in the industry and are here shown to illustrate the differences in different localities. 15 A V E R A G E H O U R S AN D E A R N IN G S , B Y C ITIE S Cutters, vamp and whole shoe, hand, in Haverhill earned an aver age of 89.8 cents per hour, as compared with 73.3 cents in the group of cities near Haverhill, 94 cents in Boston, 89.9 cents in Brockton, 89.5 cents in Lynn, 90 cents in Chicago, 74.2 cents in Milwaukee, $1,209 in New York City, 67 cents in Philadelphia, 93.9 cents in Rochester, 95 cents in St. Louis, and 82.4 cents in the United States. Top stitchers, females, in Haverhill earned an average of 69 cents per hour, compared with 48.6 cents in the cities near Haverhill. Like comparisons of earnings per hour in other occupations in this table, and of average full-time hours per week and of full-time earnings per week may be made. T able 4 .— Average hours and earnings in 14- specified occupations in the boot and shoe industry in 11 cities and the United States, 1928 A V ER AG E EAR N IN G S PER HOU R Cities Phila Roch St. Hav near Chi Mil New United wau Lynn del er Hav Bos Brock cago kee York phia ester Louis States ton ton hill er hill Occupation Cutters, vamp and whole shoe, hand, male______ $0.898 $0.733 $0.940 $0.899 $0.895 $0.900 $0.742 $1.209 $0.670 $0.939 $0.950 $0.824 I .458 .893 .653 Skivers, upper, male.. __ .925 . 542 .573 .663 Skivers, upper, female___ .654 .444 .537 .621 .573 .576 .440 1.047 .554 .443 .532 .458 Cementers and doublers, male ___________ __ .703 .636 .444 .415 .733 .596 Cementers and doublers, female_________________ .440 .362 .366 .402 .403 .440 .352 .424 .313 .365 .360 .330 .398 Lining makers, female___ .586 .405 .489 .424 .467 .523 .480 .604 .428 .506 .438 Top stitchers, male____ .961 .519 1.041 .923 .834 .830 .830 .912 Top stitchers, female____ .690 .486 .573 """."476 .587 .633 .549 .789 .603 ""."540 " ’ .511 .451 Vampers, male__________ .830 .698 1.081 .727 .669 .693 .845 .683 .909 .887 .521 Vampers, female............ .615 .552 .626 .636 .752 .602 .519 .589 .505 .783, .609 .706 Assemblers for pullingover machine, male___ .672 .773 .750 .539 .765 .551 .659 .827 .690 .573 .572 .577 Assemblers for pullingover machine, female.. _ 1.002 .354 .799 .501 Bed machine operators, male............. ................. .817 .698 .991 .646 .805 .860 .776 .947 .697 .878 .834 .682 Turn lasters, hand, male. .818 .729 .654 .958 .833 .853 .831 .967 .787 .788 .817 "l.”024 .780 .943 .837 .911 ""."994 Goodyear stitchers, male_ 1.206 .496 ’ "."846 .766 Edge trimmers, male... .764 .986 .685 .982 .873 .751 .992 .844 .899 .742 .984 .930 Edge setters, male_______ 1.048 .770 .985 .832 .868 .892 .802 1.030 .716 .873 .782 .755 Treers, male____________ .785 .604 .863 .708 .645 .702 .623 .947 .676 .669 .683 .624 Treers, female___________ .373 .330 .635 .754 .424 .383 .386 Repairers, male_________ . 529 . 756 . 585 . 593 . 600 . 625 .632 ".756 .561 . 636 .569 Repairers, female________ .535 .414 .454 .559 .464 .406 .449 .579 .403 .425 .333 .376 All occupations, male___ .712 .692 .743 .622 .833 .637 .690 .617 .810 .597 .805 .625 All occupations, female._. .555 .425 .487 .455 .485 .481 .435 .576 .383 .445 .396 .397 All occupations, male and female____________ .699 .527 .677 .615 .617 .641 .538 .771 .537 .581 .542 .530 AVE R A G E F U L L -T IM E H O U R S PER W E E K Cutters, vamp and whole shoe, hand, male.......... Skivers, upper, male.. . . Skivers, upper, female___ Cementers and doublers, male__________________ Cementers and doublers, female.............................. Lining makers, female-__ Top stitchers, male .. . Top stitchers, female____ Vampers, male...... ............ Vampers, female________ Assemblers for pullingover machine, male___ Assemblers for pullingover machine, female.— Bed machine operators, male................................. 48.4 50.0 48.8 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 49.0 48.8 50.0 48.4 49.0 49.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.2 46.3 48.0 48.0 48.0 48.0 ’ 48. 3 48." 0 48.0 48.0 47.5 47.2 50.0 47.2 48.6 47.5 48.0 50.0 48.0 48.0 48.1 48.0 48.0 48.0 49.5 48.0 48.0 50.0 48.0 48.0 49.2 48.0 48.0 48.0 44.3 48.0 48.0 48.0 45.3 44.0 ~ 4 8 .0 " 48.0 "48.0 48.6 48.1 49.1 48.0 44.8 48.0 46. 2 48.0 48.2 48.0 48.1 48.0 48.0 ” 48.2 48.0 48.0 48.0 48.3 46.1 45.0 45.0 44.7 45.3 44.4 48.0 48.0 48.0 48.0 48.0 48.0 48.0 48.0 " “4876 " "48.0 48.0 48.0 48.0 48.0 ” 48. 0 49.3 49.2 47.9 49.4 48.2 49.3 48.2 45.2 48.0 48.0 48.0 49.0 48.2 45.0 4§.0 48.0 48.0 49.9 49.2 16 CO NDITIONS IN SHOE IN D U ST R Y IN H A V E R H IL L T a b le 4 .— Average hours and earnings in 1/+ specified occupations in the boot and shoe industry in 11 cities and the United States, 1928— Continued AVERAGE FULL-TIME HOURS PER W E E K — Continued Occupation Turn lasters, hand, male_: Goodyear stitchers, male-1 Edge trimmers, male____ : Edge setters, male_______: Treers, male____________ ; Treers, female__________ Repairers, male_________ Repairers, female_______ All occupations, male___ All occupations, female.. All occupations, male and female___________ 48. 0 48.0 48. 0 48.0 48.0 48. 0 48. 0 48.0 48.0 48.0 AVERAGE FULL-TIME EARNINGS PER WEEK Cutters, vamp and whole shoe, hand, male______ Skivers, upper, male____ Skivers, upper, female— Cementers and doublers, male__________________ Cementers and doublers, female________________ Lining makers, female— Top stitchers, male--------Top stitchers, female____ Vampers, male__________ Vampers, female________ Assemblers for pulling- over machine, male--- Assemblers for pullingover machine, female. __ Bed machine operators, male__________________ Turn lasters, hand, male_ Goodyear stitchers, male. Edge trimmers, male____ Edge setters, male______ Treers, male____________ Treers, female___________ Repairers, male_________ Repairers, female____ All occupations, male. All occupations, female.._ All occupations, male and female________________ | 1 $43.10 $35.48 $45.12 $43. 15 $43.14!$43. 20 $35.62 $53. 56 $32.16 $45.07 $45. 60 $40.05 44.40 27.10 27. 50 31.82 21.98 40, 45 31. 41 31.39 21.67 25. 78 29.81 26. 53 27.65 ~2L 25 46. 07 '26." 59 " 21."26 ’ 26." 54 22. 49 __ 21,31 21.12 28.13 46.13 33.12 39. 84 37. 58 28.61 17. 74 19. 76 25. 95 23. 52 34. 20 29. 84 17. 57 23. 47 49. 97 27. 50 51.89 33.89 32. 98 28. 36 27. 46 19.92 32. 84 37.74 29. 38 17. 52 17.28 24. 29 21.02 25. 92 24. 53 25. 01 24.91 "28*27 16. 27 19. 58 39. 76 22. 28 35.04 24.90 32. 26 38. 65 36.00 25.98 34.58 26. 45 31. 63 39.70 28. 27 19. 30 19.14 21.12 16.97 20. 35 22. 04 25.10 23.09 41. 50 43. 78 22. 85 27. 71 30. 38 ’ 26." 46 32.11 33. 68 40.56 32. 78 29. 52 26. 22 30. 05 30. 72 19. 55 27.18 41. 54 35. 27 41.18 33. 39 15.02 20.54 40.03 28. 94 42. 58 28.90 48.10 17. 70 38. 35 39. 22 39. 26 57.89 47. 33 50. 30 37.68 34. 34 36. 45 23. 81 33. 84 38.19 29.96 25. 39 37. 80 25.68 20. 24 29.37 26. 64 20. 74 47. 57 __ 40. 61 47.14 47. 28 41.42 28. 08 21.79 38. 72 23. 38 25.82 32. 49 25.00 31. 01 46. 42 37. 82 41.90 39.94 33.98 30. 48 28. 46 26. 83 34.18 21.84 38. 72 41.28 37. 62 38.81 "49." 15 36. 27 47. 62 42.10 42. 82 31.80 33. 70 36.19 20. 35 27. 00 30. 00 21.99 19. 49 33. 49 35. 59 22. 84 23. 09 37. 40 42. 62 33. 46 31. 39 42. 73 39. 98 37.67 42. 53 40.18 40. 77 40. 54 35. 62 38. 58 46. 35 34. 37 30. 03 42. 43 32. 45 18. 38 30. 34 ~34.85 ’ 26."93 21.64 25. 48 19. 34 29. 98 37. 65 30. 64 20. 97 25. 80 18. 38 42.14 40.94 43. 73 47. 23 41.90 32.11 17.90 30. 53 20.40 33.12 21. 36 40. 03 15.98 29. 62 19. 01 33. 55 39. 80 37. 46 37. 51 37.07 30. 70 19.03 27. 60 18. 57 30. 63 19. 53 29. 52 29. 55 30.70 25.93 34. 77 25.78 27. 89 26.02 26. 02 47.71 44. 64 37. 54 32. 78 15.84 Average Hours and Earnings, by States, 1916 to 1928 HE averages in Table 5 are for all of the shoe workers that were included in the study of wages and hours of labor, by the Bureau of Labor Statistics, in each State in each of the specified years from 1916 to 1928. According to the 1925 report of the United States Census of Manufacturers approximately 96 per cent of the total number of shoe workers in the industry in the United States were in the States included in the table. The number of wage earners included in the 1928 study is 23 per cent of the total in the industry in 1925. In 1916 average full-time hours per week ranged from 52.5 for the State with the shortest hours per week to 59 for the State with the T E A R N IN G S IN A BUSY W E E K AND IN A SLA C K W E E K 17 longest hours, and for all States combined was 54.6 per week. In 1928 the averages by States ranged from 47.1 to 53.1 per week and for all States was 49.1. In 1928 average earnings per hour ranged from 41.4 cents for Minnesota to 62.6 cents for Massachusetts. The average per hour for all States combined was 53 cents. T able 5 . — Average hours and earnings of shoe workers in all occupations combined in specified years, by State Average earnings per hour Average full-time hours per week state 1918 1920 1922 1924 1926 1928 52.6 53.1 51.6 55.1 "57.Y 54.3 55.0 53.2 50.0 52.4 47.5 49.7 48.2 47.6 49.8 52.2 47.4 49.7 48.0 49.0 49.8 53.4 47.8 49.7 48.0 49.8 48.4 53.4 47.1 49.7 50.4 49.3 Cents 49.8 29.0 53.1 25.5 48.1 28.2 49.6 50.0 "2 4 8 " 49.7 23.4 48.7 48.4 47.9 49.9 50.1 49.4 46.2 48.0 49.8 50.2 49.2 47.1 48.1 49.8 49.9 1916 Illinois............. Maine_______ Massachusetts.. Michigan____ Minnesota___ Missouri_____ New Hamp shire_______ New Jersey. New York___ Ohio_________ Pennsylvania. Virginia______ Virginia and Maryland Wisconsin____ Total__ 54.2 57.9 54.0 55.0 55. 0 52.5 55.2 54.8 59.0 50. 5 54.7 50.8 53. 8 54.5 54.2 48.6 49.1 47.6 49.9 50.7 48.0 48.5 47.7 47.4 50.0 50.6 47.9 57.0 54.2 48.8 48.7 48. 7 49.0 48.9 48.9 54.6 52.3 48.6 48.7 49.0 49.0 1916 1918 1920 1922 1924 1926 1928 Cents Cents Cents Cents Cents Cents 31.8 52.1 47.3 52.0 52.6 49.1 45.5 35.6 55.6 48.3 44.0 39.8 36.6 59.6 52.7 59.5 61.2 62.6 46. 9 26.8 44.7 44.9 45.7 43.7 30.1 54.4 52.0 50.5 42.4 41.4 46.2 28.9 50.2 48.5 47.6 45.6 23.6 23.4 28.6 22.6 21.8 19.8 34.9 27.0 36.5 29.8 27.1 25.7 58.5 46.9 64.2 49.7 47.9 45.9 45.8 44.5 53.5 48.9 41.8 45.1 50.5 54.6 54. 6 44.9 44.7 48.1 57. 3 59.3 51.7 45. 8 49.8 57.9 57. 5 48.9 46.5 48.9 49.1 19.1 27.0 48.0 46.5 40.5 53.0 45.2 50.4 42.8 51. 4 49.1 25.9 33.6 55.9 50.1 51.6 52.8 53. 0 t Average full-time earnings per week State Illinois............................... Maine_________________ Massachusetts......... ........ Michigan_______ ______ _ Minnesota.____ ________ Missouri_______________ New Hampshire_______ New Jersey____________ New York_____________ Ohio___________________ Pennsylvania__________ Virginia._____ _________ Virginia and Maryland.. Wisconsin______________ Total.. 1916 1918 1920 1922 1924 1926 $15. 72 14. 76 15.23 $26. 05 29.13 28.31 $23. 56 25. 21 24. 98 22. 32 24.96 23. 77 11. 68 $16. 73 18.90 18. 89 14. 77 16. 34 15. 37 17. 62 14. 77 18. 54 16.03 14. 77 13. 93 $25.90 23. 50 28.44 22. 71 24. 24 23. 70 24. 59 26.43 26.15 22. 36 22. 39 $25. 46 21. 25 28. 83 21. 72 21.37 22. 48 23. 76 26.47 28. 46 25. 75 22. 99 $24. 45 24. 16 30.11 23. 26 20. 70 22. 96 24. 50 27. 27 27. 66 24. 35 23. 20 10. 89 14.63 23.42 19. 72 25. 97 24. 65 22.10 20.93 25.24 14.11 17. 54 14. 33 12. 87 12.98 12.87 15.02 12.48 11.95 22.22 26. 22 23. 90 28. 43 23.03 30. 56 24.80 24.29 22.03 22. 21 21.23 25. 36 24. 45 21.15 21.60 22. 65 1928 24. 45 Earnings, by Occupations, in a Busy and in a Slack Week Earnings in a busy and in a slack week of individual employees in eight representative occupations in the shoe industry were copied from the pay rolls of six representative shoe manufacturers in Haverhill by agents of the Bureau of Labor Statistics. The busy week was one when the factories were in operation approximately full time and when earnings were nearly as much as in any other week during the busy season. The slack week was one when hours of operation and earnings of employees were nearly as low as in any other week during the quiet season. The figures as presented in Table 6, therefore, 18 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L represent pay periods when production and earnings were nearly at maximum and at minimum in each of the factories No. 1 to No. 6 and include the earnings of all employees who worked any time in the occupation during each of the designated pay-roll periods. Factory No. 1 had five cutters, vamp and whole shoe, hand, on its pay roll during the busy week, ending May 19, 1928. Their earnings in that week ranged from $46.89 to $61.07 and averaged $52.25 per week, or $8.71 per day. In the slack week, ending April 9, 1928, the factory had only two cutters and each earned in that week $6.62, or an average of only $1.10 per day. Factory No. 4 had 26 cutters during the busy week, ending February 27, 1928. Their earnings in that week ranged from $16.38 for the one with the lowest to $58.78 for the one with highest weekly earnings, and in the week they earned an average of $43.35 per week, or $7.23 per day. This factory had only 12 cutters in the slack week, ending December 12,1927. Their earnings in that week ranged from $5.56 to $17.08 and averaged only $12.33 per week, or $2.06 per day. Factory No. 1 had four wood heelers during the busy week, ending March 19, 1928. Their earnings in that week ranged from $49.44 to $62.88 and averaged $57.79 per week, or $9.63 per day. In the slack week, ending April 9, 1928, the earnings of the four wood heelers ranged from. $9 to $14.08 and averaged $12.46 per week, or $2.08 per day. Factory No. 6 had nine wood heelers on its pay roll during the busy week, ending July 27, 1928. Their earnings in that week ranged from $14.09 to $77.86 and averaged $58.10 per w~eek, or $11.62 per day. The employee who earned only $14.09 in the week worked less than the full week of five days of nine hours each, or 45 hours, as did also the one who earned $34.02. Employees in an occupation fre quently work less than full time per day and per week on account of having been sick, disabled, or off duty part time, or of having been in the service of the company only part of the week. In the week ending June 1, 1928, when work was slack the work available in the factory was divided equally among the regular force of five wood heelers as provided in Article 6 of the agreement. Their earnings in that week ranged from $35.10 to $42.65 and averaged $36.65 per w^eek, or $7.33 per day. Employees in the service less than five weeks are not members of the regular force and are dropped from the rolls in slack seasons. The average per day was obtained by dividing the weekly average by 5, because this firm, like others in Haverhill, was in operation only five days per week in each of these weekly pay periods. E A R N IN G S IN A B U SY W E E K AND IN A SLA C K W E E K T a b le 19 6 . — Earnings in a busy week and in a slack week, by occupations [Dates in italic indicate months in which season occurred] Em Occupation, and estab ployee lishment No. No. Cutters, vamp and whole shoe, hand: Establishment No. 1. Average per week. Average per day _. Establishment No. 2. Average per weekAverage per day _ _ Establishment No. 3_ Average per week. Average per d a y .. Establishment No. 4. Average per week. Average per d ay .. Earnings in one week Busy season Slack season May, ’28 Apr. ,’28 $49.74 $6.62 61.07 6.62 46.89 54.11 49.44 52. 25 8.71 Fancy stitchers: Establishment No. 1. 6. 62 1.10 Jan.,’28 Jan., ’28 $40.45 $6.50 51.30 10.44 50.94 8.01 51.30 10.80 50.09 10.44 53. 91 11.16 23.91 45. 99 7. 67 Occupation, and estab lishment No. Average per i Average per day_ Establishment No. 4. 9. 56 1.59 JSov., ’27 Dec., ’27 $30. 42 $4.80 26.46 14.13 24. 75 27. 72 12. 42 23.40 48.90 8. 25 28. 80 20. 34 46.45 20.83 19.80 21.95 19. 65 30.09 5. 02 16.04 2. 67 Feb.,’ 28 $58. 78 55. 39 51. 69 24. 66 47. 74 46. 30 44.58 46. 51 47.61 34. 65 55. 04 45.94 36. 77 33. 96 53. 69 16. 38 42. 22 34. 38 42.01 38. 70 49. 26 50.90 42. 39 47. 44 42. 69 37. 35 Dec., ’27 $11. 78 9.47 13. 74 5. 56 13.98 14. 35 13.31 8.24 9.28 17.08 14.80 16.33 43. 35 7. 23 12.33 2. 06 Average per week. Average per day__ Em ployee No. Earnings in one week Busy season Slack season May, ’28 Apr., ’28 $31.71 $3. 90 27. 84 1.99 28. 30 1.99 18.84 1.99 29.43 17.83 19.16 28. 93 19.76 24. 62 24. 64 4.11 2.47 .41 Feb., ’28 Dec., ’27 $29. 39 $9.95 25. 94 16. 35 31.85 24.64 26. 73 9.06 29. 06 3. 78 31.06 21.74 28. 29 3. 54 1. 72 13. 79 31.05 3. 69 29. 53 10. 51 29. 65 3. 70 30.84 11.89 35.20 13.10 24. 40 7.42 26.18 7.84 24.17 11.53 35. 68 8. 36 15.05 20.04 35.12 7. 67 20.62 5.44 32. 37 7. 72 23. 85 9.85 37.15 24. 30 31.02 6. 70 27. 86 12.16 25. 93 9. 68 20.10 14.85 13. 21 9. 75 24.10 11.53 31.82 7.07 43.02 24.59 18. 84 7. 72 26. 38 7. 72 36. 02 11. 55 31.80 9.70 20.07 29. 93 32. 02 27.44 29. 32 40. 95 20.13 29. 41 26.13 20. 07 18. 84 32. 79 19. 55 23. 44 27. 25 4. 54 11.11 1.85 20 T CO N D ITIO N S I N SHOE IN D U ST R Y IN H A V E R H IL L able 6.— Earnings in a busy week and in a slack week, by occupations— Continued Em Occupation, and estab ployee lishment No. No. Occupation, and estab lishment No. Busy season Slack season May, ’28 Apr., ’28 $26. 22 $4.01 25. 54 4. 51 26.13 3. 09 19. 52 26. 28 25. 76 Top stitchers: Establishment No. 1. 24. 91 4.15 Average per week. Average per day_. Turn workmen: Establishment No. 1. 3.87 .65 Feb., ’28 Dec., ’27 $32. 38 $24.93 43. 42 8.04 35. 21 10.71 31.03 11.10 38. 80 2.19 34. 79 12. 99 42. 79 13.94 36.29 13.20 39. 06 2. 56 41.79 8. 66 14. 78 31. 45 33.14 11. 70 9. 62 Establishment No. 4 36.68 Average per week. Average per day. _ Establishment No. 5. Earnings in one week 6.11 1 2 3 4 5 6 7 8 9 10 11 12 11.11 1.85 July, ’28 June, ’28 $34. 90 $22. 42 36. 76 26. 32 29. 60 18. 65 34. 90 20. 99 33. 57 25.73 33.31 21.45 39. 79 26. 88 34. 01 23. 70 35. 94 28.23 32.00 20.11 40. 97 24. 00 33.19 Average per week. Average per day... Wood heelers: Establishment No. 1. Average per week. Average per day.. Establishment No. 2. Average per week. Average per day C o n so lid a te d hand method lasting ma chine operators: Establishment No. 3. Average per week. Average per day Establishment No. 6. Average per week. Average per day.. 23. 50 4. 70 Nov., ’27 Dec., ’27 $36. 99 $10. 53 36. 63 14. 86 42. 39 11.76 38. 67 6. 45 12. 38 2. 06 July, ’28 June, ’28 $58. 40 $31.58 31.58 58. 40 28. 54 42. 32 58. 97 42. 32 15. 39 31. 75 43. 94 8. 79 30.06 6.01 Average per week. Average per day_. Establishment No. 3. Average per week. Average per day.. Establishment No. 4. Em ployee No. Earnings in one week Busy season Slack season M ay,’28 A pr., ill. 46 $36. 68 11.46 36. 68 5. 85 34. 20 5.85 34.20 11.56 35. 22 35. 22 11.56 12. 06 34. 51 12.06 34. 51 5. 85 26.94 5. 85 34.68 5. 85 34.68 11.89 34.74 11.89 34.74 15. 99 40. 39 15.99 40. 39 35.16 5. 85 36. 63 5. 85 10. 54 34. 26 10. 54 34. 26 5. 85 35.10 5. 85 35.10 34. 37 3.90 34. 37 3.90 5. 85 35.16 34. 08 5. 85 26. 94 5. 85 36. 63 34.08 34. 85 5. 81 8. 65 1. 44 Mar.,’28 Apr. ’28 12. 66 56. 92 14. 08 61. 92 9. 00 49. 44 14. 08 62.88 57. 79 9. 63 12. 46 2. 08 Feb.,’28 Jan., ’28 $7. 86 $51. 51 14. 92 52.38 10.20 32.50 52. 92 8. 58 48.06 56. 56 48. 99 8.17 10. 39 1. 73 N ov.,’27 Dec., ’27 $14. 70 $61. 38 63. 86 19.66 17. 52 61. 65 14. 82 58. 32 62.01 18. 66 70.47 30. 84 62.95 10. 49 19. 37 3. 23 Feb.,’28 Dec., ’27 $23. 82 $57. 24 25. 20 58.14 66. 31 36.44 54. 75 29.08 25.02 57.24 21.87 37.08 EM P L O Y M E N T , P A Y R O LLS, AND E A R N IN G S , 1928 21 T a b l e 6 .— E a r n i n g s i n a b u s y w e e k a n d i n a s la c k w e e k , b y o c c u p a t i o n s — C o n tin u e d Em Occupation, and estab ployee lishment No. No. Wood heelers—Contd. Establishment No.4. 7 8 9 10 11 12 13 14 15 16 17 18 Average per week. Average per day _ Establishment No. 5. 1 2 3 4 1 2 3 4 5 6 7 8 9 1 Average per day Establishment No. 3_ Average per day Establishment No. 4. Edge trimmers— Contd. Establishment No. 4_. Treers: Establishment No. 3_ EstablishmentNo. 4. Establishment No. 5. 1. 55 Average per week. Average per day Feb., ’28 Jan., ’28 i $13.40 1 $58. 62 Establishment No. 6. 9. 77 2. 23 Nov., ’27 Dec., ’27 i $19. 65 1 i $50. 01 8. 34 3. 28 Feb., ’28 Dec., '27 1 $49. 32 $36.90 2 57. 71 31.82 3 64. 21 35. 90 4 34. 02 60.83 Average per week Average per day Earnings in one week Busy season 1 2 3 4 5 6 29. 95 4. 99 May, ’28 May, ’28 $37. 02 $20. 70 37. 01 23. 69 22. 55 13. 36 60. 22 33. 09 37. 98 6. 33 1 2 3 4 5 6 7 8 9 10 11 17. 34 2. 89 Feb., ’28 Dec., ’27 $58.13 $28. 96 54. 51 28. 46 51. 84 28. 68 63.24 27. 90 58. 79 37. 72 42. 69 29. 04 61. 66 28. 39 30. 44 61. 71 33. 74 53. 53 53. 98 9.00 1 2 3 4 5 35.11 5. 85 Nov., ’27 Dec., ’ 27 $22. 02 $16. 94 27.10 17. 38 19. 48 17. 66 24. 36 19. 29 27. 54 20. 25 12.51 24.10 4. 02 1 2 3 4 5 6 7 8 9 10 Slack season Feb., *28 D ec.,’27 $60. 98 58. 35 $36. 90 58. 57 9. 76 Average per week Average per day 36. 65 7. 33 May, ’28 Apr., ’28 i $9. 29 i $35. 63 5 6 7 Average per week. Average per day 19. 27 3.21 July, ’28 June,’28 $69. 66 $35.10 77. 86 42. 65 62. 85 35.10 62. 54 35.10 62. 37 35. 28 69. 82 14. 09 34.02 69. 66 Em ployee No. Average per week_ Average per day 25. 82 4. 30 May, ’28 May, ’28 $59. 00 $20.13 59. 01 20. 60 56.28 19. 02 49. 80 17. 31 5.94 1 Slack season Feb., ’28 D e c.,’ 27 $24. 54 $56.16 59. 58 29. 25 57.24 23. 45 57. 06 24. 48 61.74 25. 02 57.24 24. 84 56. 70 24.12 57.24 26. 60 57. 87 25. 56 59.31 26.10 61. 02 25. 26 58. 50 24.12 58.10 11.62 Average per day Establishment No. 2_ Busy season 56.02 9. 34 Average per week. Average per day Edge trimmers: Establishment No. 1_ Occupation, and estab lishment No. 57. 25 9. 54 Average per week. Average per day Establishment No. 6. Earnings in one week 19. 25 3. 21 July, ’28 June, ’28 $38. 74 $12.10 43.21 7. 50 41.11 5. 70 41.99 9. 33 42. 20 5. 70 37. 06 9.57 42. 99 8. 70 40.41 5. 52 35. 44 3. 00 34. 63 10. 59 39. 23 39. 73 7. 95 7. 77 1.55 1 Only 1 employee working. Employment, Pay Rolls, and Earnings, 1928 ABLE 7 shows for 19 of the important Haverhill Shoe Manu facturers’ Association factories the number of working days, the number of employees on the pay rolls, the amount of the pay rolls, the average earnings in one week, and the average earnings per day based on the days of operation, for each of the weeks in T 22 CO ND ITIO NS IN SHOE IN D U ST R Y IN H A V E R H IL L 1928 from the one ending January 6 to the week ending July 27. Employees as here used include all factory workers, officials, fore men, office force, and all others on the pay rolls. Data for factory workers were not available. During the week ending January 6, 1928, there were only 5 working days, the factories being closed on Monday, January 2; the 19 fac tories had a total of 2,643 employees on their pay rolls in this week and paid to these employees $56,902.32, an average of $21.53 per week of 5 working days, or $4.31 per day. Shoe factories were closed on Saturdays in June and July. The regular working days in these months were, therefore, 5 per week. The number of employees on the pay rolls of the 19 factories during the period covered ranged from 2>643 for the week ending January 6 to 3,433 for the one ending March 30, and represent 45 to 50 per cent of all of the shoe-factory workers in Haverhill. The amount of the pay rolls ranged from $50,832.46 for the week ending January 27 to $112,297.46 for the one ending February 17. The week ending January 27 was part of the period of the January 19 to 30 general strike. The average weekly earnings of $18.77 for this week were less than in any other week in 1928, from January to July, inclusive. The average earnings per day of $3.13 were also less than in any other week. Average earnings per week were highest ($33.06) during the week ending February 17 and per day were highest ($6.06) during the 5-day week ending February 24. The chart following Table 7 shows the trend of employment and of pay rolls in the industry in Haverhill during the period covered. T able 7. — Employees (all classes) and pay rolls for 19 Haverhill shoe manufacturers’ association factories each week, January 6 to July 27, 1928 Pay roll for week ending— Jan. 6__ ____ _ _ ______ ____________________ Jan. 13 . _________ ____________________ Jan. 20 ____ ____ ________ _ Jan. 27__ ___________ - ______ -- _______ Feb. 3______________________________________ Feb. 10. . _____ _____ _______ _____ __ Feb. 17__ _______ _______ __________ Feb. 24_____________________________________ Mar. 2 ___ ____ __ _ .. ________ Mar. 9 _ __ ________ - _________ ______ Mar. 16 . _________ __ ________ Mar. 23 __ _________ - _ __ __ _ _ ____ Mar. 30 __ _ __ _________ Apr. 6_ __ ____ ___ ___ ___ __ ____ ____ Apr. 13- _______________ _____ _______ - __ - __ _______ Apr. 20 ___ ______ Apr. 27 . _ _ ___ - - - - - - ___ __ May 4 _ _________ _ _ __ __ May 11 -_ . -- _ _ _ _ _ _ __ ______ May 18 ______ - ______ __ _ _____ May 25 _ _____ __ _ _ __ June 1 _ _ _ ___ _ __ _____ _ _ __ June 8____ ________ _ __ _ ______ June 15_. _ _ _ _ _ _ _ _ _ __ June 22 _ _ ________ _ _ _ ____ June 29_- _____ __ __ ___ _____ ______ __ July 6___________ __________________________ July 1 3 - - _ _ __ ____ __ __ _ _ July 20_____________________________________ July 27_____________________________________ 1 Holiday in this week. Num ber of work Number of ing employees days in week i5 6 6 6 6 6 6 i5 6 6 6 6 6 6 6 15 6 6 6 6 6 15 5 5 5 5 i4 5 5 5 2,643 2,979 3, 044 2, 708 2, 892 3,316 3, 397 3, 328 3, 402 3,424 3. 373 3, 388 3, 433 3, 299 3,169 3,082 3,038 3, 015 2,983 2, 853 2, 777 2, 683 2, 767 2, 686 2, 813 2, 798 2, 845 2, 965 3,081 3,165 Amount of pay rolls i $56, 902. 32 74, 779. 25 77, 343. 54 2 50, 832. 46 2 66, 519. 60 103, 669. 49 112. 297. 46 i 100, 852. 90 104, 300. 81 109, 489. 33 110, 607.12 110, 484. 63 106, 219. 32 96, 381. 76 84, 062. 98 i 73, 208. 41 76, 920. 45 82, 968. 84 72, 435. 17 65, 207.11 58, 652. 00 i 50,911. 35 54, 312. 65 57, 248. 58 62, 094. 23 62,035.95 i 61, 699. 41 66, 862. 81 79,027.12 85, 847. 32 Average Average earnings in earnings per day one week i $21. 53 25.10 25. 41 2 18. 77 2 23.00 31.26 33.06 i 30. 30 30. 66 31.98 32. 79 32. 61 30. 94 29. 22 26. 53 i 23. 75 25. 32 27. 52 24. 28 22. 86 21.12 i 18.98 19. 63 21.31 22. 07 22.17 i 21. 69 22.55 25. 65 27.12 2 General strike Jan. 19 to 30. $4.31 4.18 4. 24 2 3.13 2 3.83 5. 21 5.51 6.06 5.11 5.33 5. 47 5.44 5.16 4.87 4. 42 4. 75 4. 22 4. 59 4.05 3. 81 3. 52 3.80 3. 93 4. 26 4.41 4.43 5.42 4.51 5.13 5.42 H A V E R H IL L P A Y R O L L S, 1925 TO 1928 23 Haverhill Pay Rolls, 1925 to 1928 HE figures in Table 8 represent the total weekly earnings of all the employees in the various manufacturing industries in Haverhill, Mass., beginning with the week ending January 9, 1925, and ending July 27, 1928. It is estimated by officials of the banks where the money for the pay rolls was obtained by the manu facturers, and also by others in the city who are well informed as to industrial conditions, that the pay rolls for the shoe industry, including the allied industries— wood heel, cut sole, leather heel, etc.— repre sent more than 90 per cent of the total pay rolls of all industries in the city. It is, therefore, believed that the figures are also repre sentative of the actual trend of the shoe industry during the period covered. The amount of each weekly pay roll is shown in the table with index numbers for the various amounts, the 1925 weekly average being taken as the base or 100 per cent. The 1925 weekly indexes increased from 67.6 for the week ending January 9 to 123.5 for the one ending April 3, decreased to 78.7 June 5, increased to 136 September 25, and decreased to 67.4 for the week ending December 31. Payrolls were low early in January, June, and in November and December and high in March, April, August, and September. The trend of the pay rolls in Haverhill for all industries combined follows very closely the generally known trend of the shoe industry, which has two busy seasons— one in March and April and the other in August and September— and two slack seasons— one from October to February and the other from May to July— and also confirms the estimates T 24 CO N DITIO N S IN SH O E IN D U ST R Y IN H A V E R H IL L that the pay rolls for the shoe industry represent more than 90 pe? cent of the total for all industries in the city. The low indexes in 1925 for the weeks ending February 27, April 24, June 5, July 10, September 11, October 16, November 27, and December 31 are due largely to holidays in each of these weeks. This also applies generally to weeks in 1926, 1927, and 1928 which included holidays. The very low indexes for the weeks ending January 27 and February 3, 1928, reflect loss of earnings during the period January 19 to 30, when approximately 5,000 shoe workers w^ere on a general strike. Pay rolls by weeks were generally higher in 1926, lower in 1927, and much lower in 1928 than in 1925. Examples: The April 17, 1925, April 16, 1926, April 15, 1927, and April 13, 1928, indexes are, respectively, 107.6, 121.6, 104.8, and 78.4. The indexes by years are 100 for 1925, 111.4 for 1926, and 87.7 for 1927. The trend in each year is shown graphically by the chart following Table 8. T a b l e 8 . — Amount and index number of pay roll, January, 1925, to Julyy 1928, by weeks [1925 weekly average =100] 1925 1927 1926 1928 Index Index Week Index Week Week Index Week ending— Amount No. ending— Amount No. ending— Amount No. ending— Amount No. 9 16 23 30 Feb. 6 13 20 27 Mar. 6 13 20 27 Apr. 3 10 17 24 May 1 8 15 22 29 Jane 5 12 19 26 July 3 10 17 24 31 Aug. 7 14 21 28 Sept. 4 11 18 25 Oct. 2 9 16 23 30 Nov. 6 13 20 27 Dec. 4 11 18 24 31 Av Jan. $253,653 292,443 317, 525 332,891 369,443 374,228 381,827 361,057 415,032 431,400 446,067 453,550 463,243 434,473 403,623 344, 285 393,872 391,679 368,182 348,868 363,170 295,038 300, 523 303,754 318,693 360, 732 300, 523 360,383 385,384 425,947 441,857 465, 521 489,134 495,373 507,354 433,150 500,717 509,934 469,581 445, 588 357,758 396,167 397,491 347, 138 298,906 295,345 272,368 273,622 276,936 285, 062 300, 798 252,720 375.077 67.6 78.0 84.7 88.8 98.5 99.8 101.8 96.3 110.7 115.0 118.9 120.9 123.5 115.8 107.6 91.8 105.0 104.4 98.2 93.0 96 8 78.7 80.1 81.0 85.0 96.2 80.1 96 1 102.7 113.6 117.8 124.1 130.4 132.1 135.3 115.5 133.5 136.0 125.2 118.8 95.4 105.6 106.0 92.6 79.7 78.7 72.6 73.0 73.8 76.0 80.2 67.4 100.0 Jan. 8 15 22 29 Feb. 5 12 19 26 Mar. 5 12 19 26 Apr. 2 9 16 23 30 May 7 14 21 28 June 4 11 18 25 July 2 9 16 23 30 Aug. 6 13 20 27 Sept. 3 10 17 24 Oct. 1 8 15 22 29 Nov. 5 12 19 26 Dec. 3 10 17 24 31 Av $323,016 357, 794 397,118 431,018 448,823 465,330 472,011 445,439 505, 534 519,156 500,868 499,885 474,092 457, 565 456,133 408,737 485, 787 481,400 474,516 463,782 443,930 366,084 387,966 379,265 389,436 410,026 299,932 379,400 406,019 426,899 435,945 450,933 469,632 485,489 492, 798 421,440 567,346 540,122 554,952 540,472 460,937 476, 632 385,004 373,743 326,035 278,725 254,656 230, 907 239, 643 250,052 255,101 272,141 417, 686 86.1 95.4 105.9 114.9 119.7 124.1 125.8 118.8 134.8 138.4 133.5 133.3 126.4 122.0 121.6 109.0 129.5 128.3 126 5 123.6 118.4 97.6 103.4 101.1 103.8 109.3 80.0 101.2 108.2 113.8 116.2 120.2 125.2 129.4 131.4 112.4 151.3 144.0 148.0 144.1 122.9 127.1 102.6 99.6 86.9 74.3 67.9 61.6 63.9 66.7 68.0 72.6 111.4 Jan. 7 14 21 28 Feb. 4 11 18 25 Mar. 4 11 18 25 Apr. 1 8 15 22 29 May 6 13 20 27 June 3 10 17 24 July 1 8 15 22 29 Aug. 5 12 19 26 Sept. 2 9 16 23 30 Oct. 7 14 21 28 Nov. 4 11 18 25 Dec. 2 9 16 23 30 Av $265,715 314,085 326,015 357,008 371,683 373,111 380,973 341,910 376,937 393,241 354,988 373,412 403,245 403,017 392,898 327, 549 347, 701 340, 531 326,494 308,094 299,286 246,137 261, 567 257,994 269,390 316,131 224,871 300,875 341,480 354,274 355, 282 384,653 380,254 395,320 408,144 341,368 404,491 418,139 416,640 411, 200 352,907 363,455 361, 588 326,940 276,895 243,040 226,438 218,187 215, 580 210,488 234, 271 204,467 328, 853 70.8 Jan. 83.7 86.9 95.2 99.1 Feb. 99.5 101.6 91.2 Mar. 100.5 104.8 94.6 99.6 107.5 107.4 Apr. 104.8 87.3 92.7 90.8 May 87.0 82.1 79.8 65.6 June 69.7 68.8 71.8 84.3 60.0 July 80.2 91.0 94.5 94.7 102.6 101.4 105.4 108.8 91.0 107.8 111.5 111.1 109.6 94.1 96.9 96.4 87.2 73.8 64.8 60.4 58.2 57.5 56.1 62.5 54.5 87.7 1 6 13 20 27 3 11 18 24 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 6 13 20 27 $211,301 255, 591 277,350 225 641 236,481 322,423 367,045 355,458 363,976 367,981 375,362 362, 512 346,669 317,468 294,193 268,011 274, 747 289,317 284, 756 247,648 231,375 222,654 219,523 221,272 225, 628 251,444 229, 711 243, 549 271,362 299,270 56 3 68 1 73 9 60.2 63 0 86 0 97 9 94 8 97 0 98.1 100.1 96 7 92 4 84 6 78 4 71.5 73.3 77.1 75.9 66 0 61.7 59.4 58 5 59 0 60.2 67 0 61.2 64 9 72 3 79.8 H A V E R H IL L PA Y R O LLS, 1925 TO 192S IN D E X N U M B E R S OF P A Y -R O L L S . 1925 weekly average. = 100. 2 26 C O N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L Shoe Workers’ Unions in Haverhill HE Shoe Workers’ Protective Union, with an average of 8,042 members in good standing in 1925, of 8,790 in 1926, of 8,262 in 1927, and an average of 7,465 for the months January to August, 1928, is really the only shoe workers’ union in Haverhill of material importance in number of members. This union has an agreement (p. 28) with the Haverhill Manufacturers’ Association and agreements or understandings with each of the other manufacturers of shoes or parts in Haverhill, except 1 open shop, 1 cooperative shop, 1 nonunion shop, and possibly a few very small factories that have been in business for only a short time. “ In good standing” as here used means that all dues and assess ments have been paid in full. The actual number of shoe workers in Haverhill on the register of the Shoe Workers’ Protective Union is considerably in excess of the number given above as there are at all times a number in arrears of dues. The initiation fee is not less than $2, the dues are 25 cents per week, payable weekly, and members of local unions are also subject to assessments. From this it may be seen that for dues only the unions collect from their members approximately $100,000 annually. The money collected for initiation fees, dues, and as assessments is used in paying per capita dues of 10 cents to general office organization, salaries of union officials and agents, maintenance of offices, half the expenses of the shoe board, and attorney fees and other expenses. It is rather difficult to get initiation into some of the locals of the Shoe Workers’ Protective Union. An official of the union in speaking of the various locals remarked incidentally that in one of the locals it is necessary that a candidate for initiation be recommended by two members in good standing and that no two members of that local will sign the petition of any applicant. The local was named by the official. The Boot and Shoe Workers’ Union, with a membership of 194 in 1928, is the only other organization of shoe workers in Haverhill. The initiation fee is $2 and dues are 35 cents per week. This union is affiliated with the American Federation of Labor and has an agreement with only one shoe manufacturer in Haverhill— one making men’s shoes. The membership of this union in Haverhill decreased from about 1,200 in 1920 or 1921 (when it had agreements with three manufacturers of men’s shoes) to 299 in 1925, 265 in 1926, and to 206 in 1927. A small number of members of this union also have mem bership in the Shoe Workers’ Protective Union and are now working in factories which have agreements with that union. A representa tive of this union stated that the Haverhill manufacturers do not want agreements with the Boot and Shoe Workers’ Union. When asked for an explanation of this statement the representative said, “ A number of them a few years ago made agreements with us but quit and made agreements with the other union.” The open shop has been in operation about four years, beginning with about 35 employees, and having in August, 1928, 175 workers. It operated full time in 1925, 1926, all of 1927 except two weeks in December when the factory worked 50 per cent of full time, and all of 1928 to August, the period covered by this study. The employees T 27 HAVERHILL SHOE MANUFACTURERS’ ASSOCIATION are reported as satisfied. Only one worker is reported as having left the service in the last year and then only because the family with whom he made his home moved from the city. It was stated by this firm that the company has a waiting list of 300 to 500 applicants on file at all times, that each applicant makes application in writing, and that the company has been unable to keep up with its orders. Each of the 70 employees in the cooperative factory is a stock holder of the establishment. The factory had in August, 1928, been in operation about five months. The nonunion shop which had in August, 1928, been in operation a little more than four years was in that month employing about 30 shoe workers. The following table gives the total membership in good standing in the Shoe Workers’ Protective Union in Haverhill, including a small local at Derry, N. H., in each month from January, 1925, to July, 1928, and the average number for each year. T able 9. — Number of members of the Shoe Workers1 Protective Union in good stand ing each month, January, 1925, to July, 1928 1925 1926 1927 1928 Month 1925 1926 1927 January.. ............. . 7,848 February___________ 7,928 March . __ _ 8,122 April. _ ____ _____ 8,116 May _____________ 7, 707 June__ - ____ ___ 7, 526 July------------------------- 7, 829 8,463 8, 630 8, 760 9,025 9,031 8, 807 8, 677 8,487 8, 571 8, 817 8, 592 8, 432 8,079 7,921 7,434 7, 738 7, 892 7,820 7, 505 7,019 6, 847 August_____________ September.._______ October _________ November__________ December__________ 8, 228 8, 457 8, 393 8,140 8, 213 8, 760 8, 913 9,116 8, 798 8, 496 8,039 8, 228 8, 283 8,067 7,626 Average for year.. 8,042 8, 790 8,262 Month 1928 i 7, 465 i 7 months. Haverhill Shoe Manufacturers’ Association I N MARCH, 1928, the Haverhill Shoe Manufacturers’ Associa tion included 42 members and employed approximately 6,000 shoe workers, or 80 per cent of the total number at work in the shoe factories in the city at that time. The number of association factories and the average number of workers employed in such fac tories vary from year to year. Association members ranged from 30 in 1925 to 65 in 1920 and employed an average of 6,987 shoe workers in 1920, 6,503 in 1921, 6,213 in 1922, 6,244 in 1923, 5,272 in 1924, 4,560 in 1925, 5,947 in 1926, 4,552 in 1927, and 4,826 January to June 30, 1928. In 1925 the association members employed about 57 per cent of the average number of shoe workers in good standing in the Shoe Workers’ Protective Union in Haverhill, 68 per cent in 1926, 55 per cent in 1927, and 65 per cent for the period January 1 to June 30, 1928. The expenses of the association are paid from funds collected from association members. Each association member pays $5 per year for each employee, based on the average number employed each month. These funds are used in the payment of the salary of the association manager, of an expert who figures labor costs or prices of various operations on different styles of shoes for association factories, of one or two stenographers, of rent for office and of office expenses, and also of half of the expenses of the shoe board. In the aggregate the expenses amount to between $25,000 and $30,000 annually. 28 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L Working Agreement or Peace Pact T HE agreement between the Shoe Workers’ Protective Union and the Haverhill Shoe Manufacturers7Association, in effect w^hen the material for this report was collected in 1928, is as follows: This agreement between each and all of the members of the Shoe Workers’ Protective Union of Haverhill, Mass., and such others as shall become members of said union during the term of this agreement, party of the first part, herein after referred to as employee or employees, and the following-named persons, firms, and corporations engaged in the business of manufacturing shoes, members of the Haverhill Shoe Manufacturers’ Association, namely: [List of names omitted] and such other manufacturers as shall become members of said associa tion during the aforesaid term, excepting those under prior contract with some other labor union, party of the second part, and hereinafter referred to as manu facturer or manufacturers. Witnesseth: 1. This agreement applies only to the operation of factories in Haverhill, Mass. 2. There shall be no strikes, lockouts, or cessation of work during the life of this agreement. This article is not arbitrable. 3. Except as may be otherwise agreed upon only members of the Shoe Workers’ Protective Union in good standing shall be employed by the manufacturer to perform operations in the manufacture of shoes. When a manufacturer lacks a sufficient number of union operatives to do his work before he can employ operatives who are not members of the Shoe Workers’ Protective Union, he shall at once notify the union headquarters and give the union an opportunity to supply union operatives; if the union does not supply a sufficient number of competent operatives within 24 hours, then the employer shall have the right to employ operatives who are not members of the Shoe Workers’ Protective Union to fill the places of those the union is unable to fill; and the union agrees to accept such operatives into the union at the regular initiation fee, provided that the manufacturer, upon being notified that the union can supply union operatives, states that he wishes to retain such operatives who are not members of the union; and such statement by the manufacturer shall place the said opera tives in the same status as members of the Shoe Workers’ Protective Union. This is not to be construed as meaning that the union must take in any person or persons not having a clean labor record and manufacturers, shall replace such operatives upon request from the union. Upon hiring operatives who are not members of said union the manufacturers shall immediately forward in writing to the union the name and address of such operative. Any member of the Shoe Workers’ Protective Union after a period of five consecutive weeks of employment becomes a member of the shop crew. The manufacturer agrees that there shall be no laying off of members of the crew, and during the slack periods work shall be distributed as equally as possible among the crew. / 4. The provisions of this agreement shall not apply to work performed by office forces, salesmen, superintendents, and foremen, foreladies, assistant fore men, assistant foreladies, not to exceed three persons in any one department, one of whom may be designated as a shipper, unless the production of such depart ment exceeds 1,200 pairs daily, when a greater number of assistants in propor tion to the work required may be had, machinists who do not work on shoes, engineers and other persons employed by the manufacturers in executive, mana gerial, or administrative capacities and persons holding such positions need not be members of the union. During their spare time, but not amounting to more than half their time, superintendents, foremen, foreladies, assistants, and foremen and assistant fore ladies may be employed to a reasonable extent in working on shoes in any of the departments without being members of the union. Any claim of the union that the designation of any employee as one holding such a position is a pretext or that any such person is to an unreasonable extent employed or engaged as a shoe worker, if not adjusted with the union, shall be referred to arbitration. Manufacturers, including in cases of corporations, officers, may work on shoes in any of the departments of the business without being members of the union. 5. The basic week’s work shall be from 7.10 to 11.50 a. m., each week day morning including Saturday and from 1 to 5 p. m, on Monday, Tuesday, Wednes W O R K IN G A G R E E M E N T O R PEA CE PAC T 29 day, Thursday, and Friday during the months of September, October, November, December, January, February, March, April and May of each year. During the months of June, July, and August the working time shall be 7 a. m. to 12 m. and 1 to 5 p. m. on each week day except Saturday. Overtime work shall be granted at the discretion of the neutral arbiter, if the manufacturer can show such overtime to be necessary. Saturday morning work during the months of June, July, and August shall be granted within legal limits at the discretion of the neutral arbiter. Overtime work over 48 hours shall be paid for at the rate of time and one-half. Prices in existence, at the beginning of this agreement shall prevail for one year. Operatives to be paid not later than 5 p. m. Friday.. 6. All the differences shall be referred for final settlement to a board of arbitra tion, which shall consist of three members, who are to be chosen as follows: One member to be appointed by the local involved, or by the general president of the Shoe Workers’ Protective Union if the district organization is involved, one mem ber to be appointed by the manager of the Manufacturers’ Association, both of whom shall serve until the determination of the particular controversy for which they were appointed; the third member, who shall be known as the neutral arbi trator, shall be chosen by the said general president and manager: Provided, how ever, That if within 12 secular days from the date hereof they shall fail to agree upon and designate the third or neutral member of said board, then the neutral member shall be named in writing by any four of the following named persons: William D . McFee, Rev. John J. Graham, Fred D. McGregor, Rev. A. Karl Skinner, Matthew J. Fowler, Parkman R. Flanders, and Daniel J. Cavan, acting upon the written application of said manager or said general president, but no neutral member shall be so named unless he has the indorsement of either said manager or said general president. Said neutral member shall serve until the expiration of this agreement. A vacancy in the membership of said board of arbitration caused by the death, resignation, refusal, or inability to serve of the third or neutral member shall be filled by the appointment of a new member of said board by the then general president of the Shoe Workers’ Protective Union and the then manager of the Haverhill Shoe Manufacturers’ Association: Provided, however, That if wTithin 12 secular days from the creation of such vacancy the said general president and the said manager shall fail to agree upon and designate the third or neutral member of said board, then said appointment of the third or neutral member shall be made as provided in case of failure to agree on the first appointment of said neutral member. In case of the failure of any member of said board other than the neutral member to serve for three days for an 3^ cause, then the said local involved, or the general president, if the district organization is involved, in the case of said failure of a union member to serve, or the said manager of the association in the case of said failure of a manufacturers’ member to serve, shall within three secular days after receipt of a written notice of such failure to serve from the other party to the agreement, appoint a representative who shall act as a member of said board in place of said member failing to serve. If the said local involved, or the general president if the district organization is involved, or the said manager, whose duty it is to appoint such representative, fails within said three secular days to do so, then the other members of the board of arbitration shall proceed and transact business and in such case their decision shall be the decision of the board, and if they fail to agree the decision of the neutral member shall be the decision of the board. ^ Said board of arbitration may summon witnesses and conduct a full investiga tion of all matters in dispute which shall be referred to it and shall have powder to determine and settle by a vote of a majority of its members, except as otherwise provided, all matters of controversy referred to it, and every determination or finding as aforesaid by said board of arbitration shall be conclusive and binding upon the parties. The board shall have power to determine the manner of conducting its hearings and the nature and character of the evidence. Every decision of said board of arbitration shall so far as it may be possible, relate back to, and become effective as of, the date of the original claim for arbitration, and the same matter shall not be brought before the board again within three months from the date of said decision. Prices that have been fixed for a yearly period shall remain unchanged as pro vided in article 11, but prices for new work may be fixed at any time for the 24011°—29----- 3 30 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L remainder of said yearly period: Provided, That if no 90-day notice is given as provided in article 11 all prices shall remain unchanged for another year. Before the board convenes on any case presented for arbitration, it shall be the duty of the chairman of the board to visit the department involved and make a personal investigation of the subject in controversy. The board shall not have authority to impose monetary fines. Reference to the board of arbitration may be claimed at any time, in writing by the Haverhill Shoe Manufacturers' Association, acting through its manager, or by the Shoe Workers’ Protective Union, acting through its general president. Written notice shall be given by the party to this agreement to the effect that such reference is claimed, and describing briefly the matter or matters in con troversy to be settled thereby. The said board of arbitration shall give notice in writing to both parties hereto of the time and place of the hearings upon all matters referred to it as aforesaid, and may order the production before it of any shoes, machinery, or materials which it may deem relevant to any matter to be decided by said board. Within three secular days after the reference to said board of arbitration of any matter, complaint or controversy, a regular hearing or hearings thereon shall be had before said board, and shall proceed with all reasonable expedition. All decisions and orders of said board of arbitration shall be made in writing and shall be signed by a majority of its members, except as otherwise provided, and shall be made within three days after the close of the evidence. The third or neutral member of said board of arbitration shall be reimbursed for all expenses and disbursements incurred by him in performance of this duties, and shall be paid a reasonable compensation for his services, the parties hereto agreeing to pay in equal shares all sums of money required for the abovementioned purposes. Clerical and stenographic services incurred by the board shall be borne equally by the association and union. 7. There shall be no work done on the following holidays: January 1, Feb ruary 22, April 19, M ay 30, July 4, Labor Day, October 12, Thanksgiving D ay, and Christmas Day, or the days on which said holidays are celebrated. 8. The discharge or suspension of any employee which the union claims to be unjustifiable shall be arbitrated, and such case must be heard and a decision rendered within two secular days of reference. 9. The collector and business agent of each local of the Shoe Workers’ Pro tective Union shall, after giving notice to the office, have access to the departments of the factory in which the work under the jurisdiction of such local is done for the purpose of performing their official duties. Shop committees shall be allowed to have full rights to perform their official duties. 10. When a condition arises in a factory department which is peculiar to that department or branch of work and does not appear in other departments or branches of work then the matter may be taken up between the local in whose jurisdiction said department or branch of work may be and the manufacturers’ association, for adjustment. If a mutually satisfactory agreement can be reached between the local involved and the manufacturers’ association then such agreement shall be binding on the parties but shall apply to and affect only the local involved. If a satisfactory agreement can not be reached such matter is to be arbitrated. N o decision under this article shall be considered a monetary fine. 11. This agreement shall remain in force until December 31, 1930: Provided, Should either party to this agreement desire to alter, amend, or annul it before its expiration, it shall give written notice thereof to the other party not later than September 1, 1928, in which event the agreement shall remain in force until December 31, 1928. If no notice is given on or before September 1, 1928, the agreement remains in full force and effect until December 31, 1930. If such notice is given and mutually satisfactory amendments are entered into by the parties, then the agreement as amended shall continue in full force and effect until December 31, 1930. In case such notice is given meetings shall be held between the parties not later than 10 days after the giving of the notice. If the party giving the notice fails or refuses to meet the other party within said 10-day period, then the orig inal agreement shall continue in full force and effect until December 31, 1930. Any proposed changes or amendments agreed upon by the representatives of the parties to the agreement shall be submitted for approval, or ratification to the parties themselves and such approval, ratification, or rejection (as the case may be) shall be made known to the parties on or before October 1, 1928. A desire to change prices at the end of any year shall become a controversy under H A V E R H IL L SH OE B O ARD A C T IV IT IE S 31 this agreement and notice of such desire must be made 90 days before the expira tion of the term. If such notice is not given prices shall remain unchanged for another year. All evidence must be presented to the arbitration board within 60 days after the date of such notice and a decision reached 10 days before the end of the year, and such decision shall become the prices for the following year. In witness whereof the parties hereto have hereunto set their hands t h is ----------day of December, 1925. t H a v e r h il l Shoe W orkers’ P r o t e c t iv e U n io n B y ----------- , General President. H a v e r h i ll S h o e M a n u f a c t u r e r s ’ A s s o c ia tio n B y ----------- f Chairman of Board of Trustees. Union Votes to Terminate Agreement HE Shoe Workers’ Protective Union on August 16, 1928, by referendum voted 570 against and 23 for the continuance of the “ peace pact” after December 31, 1928. The total vote of 593 is only 8% per cent of the total of 6,847 members of the union in good standing as of July, 1928. Union leaders in commenting on the vote as cast stated that it represents the general sentiments of the rank and file of the union against a further continuance of the agreement. The vote confirmed the prediction of the result of the referendum a week before the vote was cast as made by one of the most active and influential union leaders. District Council No. 1 of the union, before September 1, 1928, gave the Haverhill Shoe Manufacturers’ Association written notice as required by the agree ments of the decision of the union to terminate the agreement on December 31, 1928. T Haverhill Shoe‘Board Activities k ETICLE 6 of the agreement between the Shoe Workers’ Protective Union and the manufacturers’ association provides for final settlement of all differences by an arbitration board. The board consists of a representative of the union, a representative of the manufacturers, and a neutral member selected by the general president of the union and the manager of the manufacturers’ associa tion, or by any four of a committee of seven specified leading citizens of Haverhill. In any controversy arising between any of the members of the union and one or more of the manufacturers’ association and inability of those directly interested parties to make a satisfactory settlement of their differences, the representative or agent of the union and the manager of the association, on request of either party, try to settle the differences. In case of failure, the question at issue is then referred to the shoe board in writing, for final settlement by arbitration. There is no provision in the agreement for appeal from the decision of the shoe board. Between October 28, 1927, the date of the beginning of the service of the present chairman of the shoe board, and August, 1928, the repre sentatives of the union and of the manufacturers’ association referred 379 cases to the board for arbitration. Of these, 337 have been decided. Approximately 91 per cent of the cases were inaugurated by the union. In 190, or 56 per cent of the 337 cases, the representative of the union voted with the chairman. In 147 cases, or 44 per cent of the 337? the union representative did not vote with the chairman. 32 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L In cases directly affecting individual local unions the union repre sentative voted with the chairman or neutral member of the board in 71 per cent of the total number of cases of Finishers’ Local No. 1; in 50 per cent of Turn workmen Local No. 2; in 58 per cent of Cutters’ Local No. 7; in 54 per cent of McKay and Welt-Workers’ Local No. 8; in 45 per cent of Packers’ Local No. 9; in 58 per cent of Stitchers’ Local No. 10; and in 22 per cent of the cases of Heelers’ Local No. 13. The outstanding decision of the shoe board since May 8, 1924, when wrages were reduced was that of December, 1927, in answer to the appeal of the manufacturers for a reduction and of the union for an increase of wage rates. (See briefs, pp. 43 to 68.) The December, 1927, decision is entirely too long and complicated to include in this report. It caused much contention and conflicting claims as to the amount or percentage of reduction. The citizens’ committee recommended that a test of the reduction be made by figuring the prices at the rates before and after the reduction on 50 representative pairs of shoes in the order of arrival at the manufacturers’ association from the various factories. The test was made and the chairman of the board said it was found that the reduction ranged from 2 per cent on the pair of shoes with the lowest to 13 per cent for the pair with the highest percentage of reduction and that the average was 7.6 per cent. An agent of the union in speaking of this reduction recently said it was 10 per cent. Piece rates on shoes before and after reductions.— The figures in Table 10 show piece rates per case of 36 pairs of shoes on each of 37 styles of shoes as paid to the shoe workers in each of 7 local unions of the Shoe Workers’ Protective Union and to all locals together before and after the reduction of such rates. The Haverhill Shoe Board reduced rates in December, 1927. This reduction went into effect January 1,1928, and was rescinded January 29 by an agreement (p. 82), made at the termination of the strike by the union against the reduc tion. The union made a voluntary and general reduction of 10 per cent in June, 1928, to each shoe manufacturing establishment that would sign the following agreement: Agreement 1. It is hereby agreed between t h e ----------- , its assignees or successors, and District Council No. 1 of the Shoe Workers’ Protective Union that in considera tion of a 10 per cent deduction on all piece prices on the 1927 lists granted by the said District Council No. 1 to t h e ----------- , the company agrees to furnish to the employees in its factory — cases’ of shoes each year during the period of this agreement, it being understood that — cases mean — cases of 36 pair lots. No more than 20 per cent shall be in lots of less than 36 pairs. 2. agrees that in the event that it fails to furnish this number of shoes to its workers, it will pay to them the difference between what they earned under this concession and what they would have earned if the prices were figured on the 1927 basis. Hour work prices are to remain the same as before. 3. No member of the Shoe Workers’ Protective LTnion shall be required to work on shoes or any parts of shoes coming from a factory where members of the Shoe Workers’ Protective Union are on strike. 4. Regular prices paid in other factories shall be paid for all contract work done by this firm. Contract work done by this firm does not apply to the guarantee given by this firm. 5. This firm will be governed by all the other articles of the peace pact. This agreement to take effe c t-----------------, 1 9 2 , and to expire-----------------, 192 . Signed for fir m :------------------------ . Signed for union: ------------------------, H A V E R H IL L SHOE BO ARD A C T IV IT IE S 33 In case there is no permanent shoe board, all differences shall be taken up and settled by arbitration and each case so arbitrated must be heard and a decision rendered within two secular days of the reference to the arbiters. The arbiters are to be appointed as follows: One arbiter to represent the union, one arbiter to represent the firm, and the neutral arbiter to be selected by the other two, which neutral arbiter shall be chairman of the arbitration body. In the event the arbiter representing the union and the arbiter representing the firm being unable to agree upon the third or neutral arbiter, then it is mu tually agreed that ----------of ----------- shall act as the third or neutral arbiter. Signed for the fir m :------------------------ . Signed for the union: ------------------------. The table also shows the percentage reduction by the shoe board in comparison with that of the union. Before any reduction was made by the shoe board or by the union a rate of $1.48 per case of 36 pairs of style No. 1, a M cKay shoe, was paid to local No. 1 finishers and edge makers. This rate was reduced to $1.34 or 9.5 per cent by the shoe board and to $1,332 or 10 per cent by the union. The shoe board made no change in the rate of 89.5 cents for Cut ters Local No. 7, but the union reduced this rate to 80.55 cents or 10 per cent. The shoe board made a reduction of 9.9 per cent in the rate to Local No. 8; of 4.9 per cent to Local No. 9; of 5.6 per cent to Local No. 10; and of 16 per cent to wood heelers or Local No. 13, as compared with a reduction of 10 per cent to each local by the union. The total of the rates to the six local unions before the reduction by the shoe board or the union was $8.42 per case of 36 pairs. This rate was reduced to $7.81 or 7.2 per cent by the shoe board and to $7,578 or 10 per cent by the union. Local No. 2, turn workmen, do no work on M cKay shoes, nor do M cKay lasters and stitchers or Local No. 8 do any work on turn shoes. T 10.— Piece rates to union locals on each of 37 styles of shoes before and after reductions by Haverhill Shoe Board on January 1, 1928, and by union in June} 1928 able Piece rates paid to members of local union No.— 8: Mc 1: Fin Kay d: Pack 10: Fit ishers 2: Turn 7: Cut lasters ters 13: ers, work and and Wood and ters ironers, stitch edge men heelers stock etc. makers ers fitters Item Total SHOE NO. 1 Rate before Jan. 1 1928, reduction___ Rate after Jan. 1,1928, reduction____ Rate after June, 1928, reduction____ Per cent reduction by shoe board___ Per cent reduction by union..... ......... $2. 43 $2.19 $2.187 $1. 44 $1. 37 $1. 296 4.9 10.0 10.0 i. 375 $1.80 $1. 70 L315 $1.62 $0. 3375 5.6 16.0 10.0 10.0 $1.16 $1.01 $1. 044 12.9 10.0 $4.19 $1.265 $4.20 $1.265 $3. 771 $1.1385 i 0.2 0 10.0 10.0 $1.44 $1.37 $1. 296 4.9 $3. 59 $1. 32 $12.965 $3.28 $1. 26 $12.385 $3. 231 $1.188 $11.6685 4.5 8.6 4.5 10.0 10.0 10.0 $1.48 $1. 34 $1.332 9.5 $1.33 $1.33 $1.197 0 10.0 $1.48 $1.34 $1.332 9.5 10.0 $0.895 $0.895 $0.8055 0 $8.42 $7.81 $7. 578 7.2 10.0 SHOE NO. 2 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board___ Per cent reduction by union.............. SHOE no. 10.0 3 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction____ Rate after June, 1928, reduction........ . Per cent reduction by shoe board___ Per cent reduction by union................ i Increase. 10.0 $2. 43 $2.19 $2.187 9.9 10.0 $1. 44 $1. 37 $1. 296 4.9 10.0 $6.00 i. 375 $13.055 $5. 72 $0. 315 $12. 265 $5.40 * i. 3375 $11.7495 6.1 4.7 16.0 10.0 10.0 10.0 34 CO N D ITIO N S IN SHOE IN D U S T R Y IN H A V E R H IL L T a b l e 10.— P iece rates to u nion locals on each o f 37 styles of shoes before and after reductions by H averhill Shoe Board on J an u ary 1, 1928, and by u nion in J u n e, 1928— C on tin u ed Piece rates paid to members of local union No.— Item 1: Fin ishers 2: Turn 7: Cut work and ters men edge makers 8: Mc Fit Kay 9: Pack 10: ters 13: lasters ers, and Wood and ironers, stitch heelers stock etc. ers fitters $1.53 $1. 34 $1. 377 12.4 10.0 $1. 575 $1. 575 .4175 $2.43 $2.19 $2.187 9.9 $1.44 $1.37 $1. 296 4.9 10.0 10.0 10.0 Total SHOE NO. 4 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board... Per cent reduction by union_______ 0 !4.61 $1.46 $13.045 ;4. 33 $ 1.10 $11.905 ;4.149 $1.314 $11. 7405 6.1 24.7 8.7 10.0 10.0 10.0 SHOE NO. 5 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board... Per cent reduction by union............. $1.16 $1.01 $1. 044 12.9 10.0 $1.44 $1.37 $1. 296 4.9 10.0 $4. 80 $4. 51 $4. 32 $1. 44 $1.37 $1. 296 4.9 10.0 $3. 81 $0. 375 $10.99 $3. 48 $0. 315 $ 10.10 $3.429 $0. 3375 ‘ I. 891 8.1 16.0 8.7 10.0 10.0 10.0 $2.178 12.4 $1.44 $1. 36 $1. 296 5.6 10.0 10.0 $2.98 $0. 375 $2.87 $0. 315 $2. 682 $0. 3375 16.0 3.7 10 0 10.0 $2.43 $2.19 $2.187 9.9 $1.44 $1. 37 $1. 296 5.6 10.0 10.0 $4.1» $1. 075 $4. 20 $1.075 $3.771 $0.9675 10.2 10.0 0 10.0 $1.32 ,$13.985 $1. 26 $13.425 $1.188 $12. 5865 4.5 6.0 4.0 10.0 10.0 10.0 SHOE NO. 6 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board... Per cent reduction by union_______ $1.53 $1. 34 $1.377 12.4 ;$1.405 $1.405 $1. 2645 0 10.0 10.0 $1.48 $1.34 $1. 332 9.5 $1.135 $1.135 $1.0215 10.0 10.0 $2.43 $2.19 $2.187 9.9 10.0 SHOE NO. 7 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction.__ Rate after June, 1928, reduction___ Per cent reduction by shoe board... Per cent reduction by union_______ 0 $2.42 $ 2.12 $9.83 $9.14 $8. 847 7.0 10.0 SHOE NO. 8 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board__ Per cent reduction by union_______ $1.00 $1. 53 $1. 34 $1.377 12.4 $1. 00 $0.90 0 10.0 10.0 $4. 27 $4.10 $3. 843 4.0 10.0 0. 375 $11.045 0.315 $10. 315 0. 3375 $9. 9405 6.6 16.0 10.0 10.0 SHOE NO. 9 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction.__ Rate after June, 1928, reduction____ Per cent reduction by shoe board... Per cent reduction by union_______ $1.16 $1. 01 $1.044 12.9 10.0 $4.19 $4.20 $3. 771 i 0.2 10.0 $1.44 $1. 37 $1. 296 4.9 0. 79 0. 79 0.711 0 10.0 10.0 $10.85 $1.95 $1. 32 $10. 53 $1.90 $1. 26 I. 765 $1.755 $1.188 2.9 4.5 2.6 10.0 10.0 10.0 SHOE NO. 10 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction.__ Rate after June, 1928, reduction___ Per cent reduction by shoe board... Per cent reduction by union_______ $1. 53 $1. 34 $1. 377 12.4 $1. 39 $1.39 $1. 251 0 10.0 10.0 $1.16 $ 1.01 $1.044 12.9 $4.19 $1. 395 $4. 20 $1. 395 $3. 771 $1. 2555 $2.43 $2.19 $2.187 9.9 10.0 $1.44 $1. 37 $1. 296 4.9 10.0 $14. 90 $6. 65 $1.46 $13. 76 $6. 37 $ 1.10 $5.985 $1. 314 $13. 41 7.7 24.7 4.2 10.0 10.0 10.0 SHOE NO. 11 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction.__ Rate after June, 1928, reduction___ Per cent reduction by shoe board... Per cent reduction by union...____ 10.0 i 0.2 0 10.0 10.0 $13. 305 $1. 32 $12. 655 $1. 26 $1.188 $11.9745 4.9 4.5 10.0 10.0 10.0 10.0 $1.44 $1.37 $1. 296 4.9 10.0 $3.80 $3. 42 $3.42 $1.44 $1. 37 $1. 296 4.9 10.0 $12. 25 $4.12 $1.46 $11. 39 $4.12 $ 1.10 $3. 708 $1.314 $11.025 7.0 24.7 0 10.0 10.0 10.0 SHOE NO. 12 Rate before Jan. 1,1928, reduction.., Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board... Per cent reduction by union.............. 1 Increase. $1.53 $1. 34 $1. 377 12.4 10.0 $1. 27 $1.27 $1.143 0 10.0 $2.43 $2.19 $2.187 9.9 10.0 35 H A V E R H IL L SHOE BOARD A C T IV IT IE S T a b l e 10.— P iece rates to union locals on each of 37 styles of shoes before and after reductions by H averhill Shoe Board on Janu ary 1, 1928, and by union in J u n e, 1928— C on tin u ed Piece rates paid to members of local union N o Item li Fin ishers 2: Turn 7: Cut work and ters men edge makers 8: Mc 10: Fit Kay 9: Pack ters 13: ers, lasters and Wood ironers. stitch and heelers stock etc. ers fitters Total SHOE NO. 13 $4.19 Rate before Jan. 1, 1928, reduction___ $1.16 I. 765 Rate after Jan. 1, 1928, reduction____ $1.01 $4. 20 $0. 765 Rate after June, 1928, reduction_____ $1.044 $3.771 $0. 6885 Per cent reduction by shoe board____ 12.9 0 i 0.2 Per cent reduction by union_________ 10.0 10.0 10.0 $1.44 $1. 37 $1. 296 4.9 $1.54 $1. 32 $10. 415 $1. 39 $1.26 $9. 995 $1. 386 $1.188 $9. 3735 4.5 9.7 4.0 10.0 10.0 10.0 $1. 44 $1.37 $1. 296 4.9 10.0 $3. 83 . 32 $12.99 $3. 60 $1. 26 $12.49 $3. 447 $1.188 $11. 691 4.5 3.8 6.0 $1.44 $1.37 $1. 296 4.9 10.0 $4.15 I 54 $12. 935 $3.96 1.48 $12. 475 $3. 735 $0.486 $11. 6415 11.1 3.6 4.6 10.0 10.0 10.0 $1.44 $1.37 $1. 296 4.9 . 32 $3.13 $12. 735 $3. 03 $1. 26 $12. 365 $2. 817 $1.188 $11. 4615 4.5 2.9 3.2 10.0 SHOE NO. 14 Rate before Jan. 1, 1928, reduction___ $1.16 $4.19 $1. 05 Rate after Jan. 1, 1928, reduction____ $1. 01 $4. 20 $1. 05 Rate after June, 1928, reduction______ $1.044 $3. 771 $0. 945 Per cent reduction by shoe board____ i 0.2 0 12.9 Per cent reduction by union_________ 10.0 10.0 10.0 10.0 10.0 10.0 SHOE NO. 15 Rate before Jan. 1, 1928, reduction___ $1.16 $4.19 $1. 455 Rate after Jan. 1, 1928, reduction. _ $1.01 $4. 20 $1.455 Rate after June, 1928, reduction__ $1. 044 $3. 771 $1. 3095 Per cent reduction by shoe board__ 0 12.9 i 0.2 Per cent reduction by union______ 10.0 10.0 10.0 SHOE NO. 16 Rate before Jan. 1, 1928, reduction. Rate after Jan. 1, 1928, reduction.. Rate after June, 1928, reduction_____ Per cent reduction by shoe board.. Per cent reduction by union______ $1.16 $1.01 $1. 044 12.9 10.0 . 495 $4.19 $4.20 $1.495 $3. 771 $1. 3455 i 0.2 10.0 0 10.0 10.0 10.0 10.0 10.0 SHOE NO. 17 Rate before Jan. 1, 1928, reduction___ $1.16 $4.19 $1. 255 Rate after Jan. 1, 1928, reduction____ $1.01 $4. 20 $1. 255 Rate after June, 1928, reduction_____ $1. 044 $3.771 $1.1295 Per cent reduction by shoe board___ 12.9 i 0.2 0 Per cent reduction by union________ 10.0 10.0 10.0 $1.44 $1.37 $1. 296 4.9 10.0 $1. 32 $13.225 $12. 735 $3. 64 $1. 26 $3. 474 $1.188 $11.9025 4.5 5.7 3.7 $3. 86 10.0 10.0 10.0 SHOE NO. 18 Rate before Jan. 1, 1928, reduction__ Rate after Jan. 1, 1928, reduction____ Rate after June, 1928, reduction_____ Per cent reduction by shoe board___ Per cent reduction by union________ $1.16 $1. 01 $1.044 12.9 10.0 $4.19 $1. 675 $4. 20 $1. 675 $.3. 771 $1. 5075 i 0.2 0 10.0 10.0 $1.44 $1.37 $1. 296 4.9 10.0 $1.32 $12. 445 $2. 62 $1. 26 $12.135 $2.394 $1.188 $11. 2005 4.5 1.5 2.5 $2. 66 10.0 10.0 10.0 SHOE NO. 19 Rate before Jan. 1, 1928, reduction__ Rate after Jan. 1, 1928, reduction____ Rate after June, 1928, reduction_____ Per cent reduction by shoe board___ Per cent reduction by union________ $1.48 $1. 34 $1.332 9.5 $1.875 $1.875 $1.6875 $2.43 $2.19 $2.187 9.9 10.0 10.0 10.0 10.0 $2. 43 $2.19 $2.187 9.9 $1. 44 $1.37 $1. 296 4.9 10.0 10.0 0 $1.44 $1. 37 $1.296 4.9 $3.92 $0. 375 $11. 52 I. 315 $10. 77 $3. 68 $3. 528 $0.3375 $10.368 6.1 16.0 6.5 10.0 10.0 10.0 SHOE NO. 20 Rate before Jan. 1, 1928, reduction__ Rate after Jan. 1, 1928, reduction____ Rate after June, 1928, reduction_____ Per cent reduction by shoe board___ Per cent reduction by union..... ......... $1. 53 $1. 34 $1. 377 12.4 $1. 27 $1. 27 $1.143 0 10.0 10.0 $1.48 $1. 34 $1. 332 9.5 $1. 545 $1. 545 $1. 3905 $4. 24 $1. 46 $12. 37 $4.12 $ 1.10 $11. 39 $3. 816 $1,314 $11.133 7.9 2.8 24.7 10.0 10.0 10.0 SHOE NO. 21 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction____ Rate after June, 1928, reduction. __ Per cent reduction by shoe board.. Per cent reduction by union______ 1 Increase. 10.0 0 10. 0 $2. 42 $2.12 $2.178 12.4 10.0 $1.44 $1.363 $1.296 5.3 10.0 $4. 03 $1.46 $12.375 $3.63 $ 1.10 $11.098 $3. 627 $1. 314 $11.1375 24.7 10.3 9.9 10.0 10.0 10.0 36 CONDITIONS IN SHOE INDUSTRY IN H AVE R H ILL T a b l e 10.— P iece rates to union locals on each of 87 styles o f shoes before and after reductions by Haverhill Shoe Board on J an u ary 1 , 1928, and by u nion in J u n e , 1928 — C o n tin u e d Piece rates paid to members of local union N o Item 8: Mc li Fin Kay 9: Pack 10: Fit ishers 2: Turn ters 13: 7: Cut lasters ers, work and and Wood ters and ironers, stitch men edge heelers stock etc. makers ers fitters Total SHOE NO. 22 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board.... Per cent reduction by union_______ $1.44 $1.37 $1.296 4.9 10.0 $12.855 $2.86 $1.32 $2.72 $1.26 $12. 445 $2. 574 $1.188 $11. 5695 4.5 3.2 4.9 10.0 10.0 10.0 10.0 $2.43 $2.19 $2.187 9.9 10.0 $1.44 $1.47 $1.296 4.9 10.0 $12.06 $3. 50 $1.46 $3.09 $1.10 $10. 79 $3.15 $1. 314 $10.854 11.7 24.7 10.5 10.0 10.0 10.0 $1.345 $1. 345 $1. 2105 0 10.0 $1.93 $1.74 $1. 737 9.8 10.0 $1.44 $1. 363 $1. 296 5.3 10.0 $3.39 $0. 375 $3.00 $0. 315 $3.051 $0. 3375 11.5 16.0 10.0 10.0 $1. 285 $1. 285 $1.1565 0 10.0 $1.93 $1.74 $1. 737 9.8 10.0 $1. 44 $1. 363 $1.296 5.3 10.0 $2. 98 $1.46 $10. 575 $2. 27 $1.10 19.098 $2. 682 $1. 314 19. 5175 23.8 24.7 14.0 10.0 10.0 10.0 $0.915 $0.915 $0.8235 0 9.5 10.0 ............. 10.0 $1.93 $1. 74 $1. 737 9.8 10.0 $1.44 $1. 363 $1. 296 5.3 10.0 $4.12 $1.46 $11.345 $3. 54 $1.10 $9.998 $3. 708 $1.314 $10. 2105 14.1 24.7 11.9 10.0 10.0 10.0 $1.16 $1. 01 $1.044 12.9 10.0 $4.19 $1.885 $4. 20 $1.885 $3. 771 $1. 6965 10.2 0 10.0 10.0 SHOE NO. 23 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board__ Per cent reduction by union........... $1. 53 $1.34 $1. 377 12.4 10.0 $1. 70 $1. 70 ____ $1.53 ____ 0 SHOE NO. 24 Rate before Jan. 1,1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board__ Per cent reduction by union_______ $1. 53 $1. 34 $1. 377 12.4 10.0 0.01 ;9.103 ;9. 009 9.1 10.0 SHOE NO. 25 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction-----Per cent reduction by shoe board__ Per cent reduction by union_______ $1.48 $1.34 $1.332 9.5 10.0 ____ SHOE NO. 26 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board__ Per cent reduction by union_______ $1. 48 $1. 34 SHOE NO. 27 Rate before Jan. 1, 1928, reduction... Rate after Jan. 1, 1928, reduction___ Rate after June, 1928, reduction____ Per cent reduction by shoe board.... Per cent reduction by union.............. $1. 53 $1. 34 $1.377 12.4 10.0 $0.985 $0.985 $0.8865 0 10.0 $1.93 $1. 74 $1. 737 9.8 10.0 $1.44 $1.363 $1. 296 5.3 10.0 $4. 52 $0.375 $10. 78 $3. 75 $0.315 *1493 $4,068 $0.3375 i. 702 17.0 16.0 11.9 10.0 10.0 10.0 $1. 48 $1.34 $1.332 9.5 $1. 435 $1.435 $1. 2915 0 10.0 $1.93 $1. 74 $1. 737 9.8 10.0 $1.44 $1. 363 $1. 296 5.3 10.0 $3. 30 $1.46 $11.045 $2.92 $1.10 $9.898 $2.97 $1.314 $9.9405 11.5 24.7 10.4 10.0 10.0 10.0 $1.105 $1.105 0 10.0 $2. 42 $2.12 $2.178 12.4 10.0 $1.44 $1.363 $1. 296 5.3 10.0 $2.98 $1.46 $10.885 $9. 418 $2. 39 $1.10 $2. 682 $1.314 $9. 7965 24.7 13.5 19.8 10.0 10.0 10.0 $1. 345 $1. 345 $1. 2105 0 10.0 $2. 42 $2.12 $2.178 12.4 10.0 $1.44 $1.37 $1. 296 4.9 10.0 $4.99 $0. 375 $12. 05 $4. 22 $0. 315 $10. 71 $4. 491 $0. 3375 $10.845 11.1 15.4 16.0 10.0 10.0 10.0 SHOE NO. 28 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction. Rate after June, 1928, reduction___ Per cent reduction by shoe board... Per cent reduction by union_______ 10.0 SHOE NO. 29 Rate before Jan. 1, 1928, reduction.. Rate after Jan. 1, 1928, reduction.__ Rate after June, 1928, reduction____ Per cent reduction by shoe board— Per cent reduction by union............ $1.48 $1. 34 $1. 332 9.5 10.0 ____ $0.9945 SHOE NO. 30 Rate before Jan. 1, 1928, reduction. Rate after Jan. 1, 1928, reduction.. Rate after June, .1928, reduction. Per cent reduction by shoe board.. Per cent reduction by union........... 1 Increase. $1.48 $1. 34 $1. 332 9.5 10.0 37 HAVERHILL SHOE BOARD ACTIVITIES . 10 — P iece rates to u nion locals on each o f 87 styles o f shoes before and after reductions by Haverhill Shoe Board on Janu ary 1, 1928, and by u nion in J u n e, 1928— C on tin u ed T a b le Piece rates paid to members of local union No.— 1: Fin ishers 2: Turn 7: Cut work and ters edge men makers Item 8: Mc Fit Kay 9: Pack 10: ters 13: lasters ers, and Wood and ironers, stitch heelers stock etc. ers fitters Total SHOE NO. 31 Rate before Jan. 1,1928, reduction____ $1.48 ............. $1,095 Rate after Jan. 1,1928, reduction_____ $1.34 $1.095 Rate after June, 1928, redaction........ . $1.332 $0.9855 Per cent reduction by shoe board_____ 9.5 0 Per cent reduction by union. ............. 10.0 ............. 10.0 $2. 42 $2.12 $2.178 12.4 10.0 $1.44 $1.363 $1.296 5.3 10.0 $4.07 $1.46 $11.965 $3.46 $1.10 $10.478 $3.663 $1.314 $10. 7685 15.0 24.7 12.4 10.0 10.0 10.0 $0. 785 $0. 785 $0.7065 0 10.0 $1.93 $1. 74 $1. 737 9.8 10.0 $1.44 $1.363 $1. 296 5.3 10.0 $5. 75 $4.95 $5.175 13.9 10.0 Rate before Jan. 1,1928, reduction____ $1.48 $0. 985 Rate after Jan. 1, 1928, reduction........ $1.34 $0.985 Rate after June, 1928, reduction.......... $1.332 : : : : : : : : $0.8865 Per cent reduction by shoe board____ 9.5 0 Per cent reduction by union. ............. 10.0 10.0 $1.93 $1.74 $1. 737 9.8 10.0 $1.44 $1.363 $1. 296 5.3 10.0 $3.13 $1. 46 $10. 425 $2. 83 $1.10 $9. 358 $2.817 $1. 314 $9. 3825 24.7 9.6 10.2 10.0 10.0 10.0 $1.93 $1.74 $1.737 9.8 10.0 $1.44 $1.363 $1. 296 5.3 10.0 $4.31 $0.375 $10.45 $3.64 $3.15 $9.313 $3. 879 $0.3375 $9.405 15.5 16.0 10.9 10.0 10.0 10.0 $1.115 $1.115 $1.0035 0 10.0 $1.78 $1. 56 $1. 602 12.4 10.0 $1. 44 $1. 37 $1. 296 4.9 10.0 $1.88 $1.46 $1. 74 $1.07 $1. 692 $1. 314 7.4 26.7 10.0 10.0 $9. 205 $8.195 $8.2845 11.0 10.0 $0.815 $0.815 $0. 7335 0 10.0 $1. 78 $1. 56 $1.602 12.4 10.0 $1.44 $1.37 $1.296 4.9 10.0 $1.96 $0.375 $1. 74 $0. 285 $1.764 $0. 3375 11.2 24.0 10.0 10.0 $7.90 $7.11 $7.11 10.0 10.0 $0. 785 $0.785 $0.7065 0 10.0 $1. 38 $1.14 $1. 242 17.4 10.0 $1.44 $1. 44 $1. 296 0 10.0 $1.45 $1.30 $1. 305 10.3 10.0 $5. 935 $5. 375 $5.3415 9.4 10.0 SHOE NO. 32 Rate before Jan. 1,1928, reduction____ $2.10 Rate after Jan. 1, 1928, reduction____ $1.905 Rate after June, 1928, reduction.......... $1.89 Per cent reduction by shoe board____ 9.3 Per cent reduction by union. ........... 10.0 $12. 005 $10. 743 $10.8045 10.5 10.0 SHOE NO. 33 SHOE NO. 34 Rate before Jan. 1, 1928, reduction___ $1.48 $0.915 Rate after Jan. 1, 1928, reduction____ $1.34 : : : : : : : : $0.915 Rate after June, 1928, reduction_____ $1.332 $0.8235 Per cent reduction by shoe board____ 9.5 0 Per cent reduction by union. ............. 10.0 10.0 SHOE NO. 35 Rate before Jan. 1, 1928, reduction___ $1.53 Rate after Jan. 1, 1928, reduction____ $1. 34 Rate after June, 1928, reduction. .......... $1.377 Per cent reduction by shoe board......... 12.4 Per cent reduction by union. .............. 10.0 SHOE NO. 36 Rate before Jan. 1, 1928, reduction........ $1.53 Rate after Jan. 1,1928, reduction_____ $1.34 Rate after June, 1928, reduction............ $1.377 Per cent reduction by shoe board_____ 12.4 Per cent reduction by unifin_________ 10.0 :::: SHOE NO. 37 Rate before Jan. 1, 1928, reduction___ $0.88 Rate after Jan. 1, 1928, reduction____ $0.71 Rate after June, 1928, reduction.......... $0. 792 Per cent reduction by shoe board___ 19.3 Per cent reduction by union ................ 10.0 The following decisions illustrate the work of the Haverhill Shoe Board : C a s e N o. 1536.— Suspension of a cutter (Referred to arbitration by the union March 3, 1928; hearing, March 5; decision, March 7) The union asks reinstatement and charges discrimination. The association bases its case entirely on the “ crew membership clause” claiming this gives the firm legal right to suspend or discharge any workers for any reason or no reason, within the time limit. 38 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L The chairman is obligated to base decisions on his interpretation of the agree ment. He has clearly defined opinion of the intent of the above clause in article 3, but does not support the extreme view of some locals whereby certain workers are taken off jobs within five weeks to prevent them from becoming crew members. The facts are: 1. When this operator wTas laid off the reason given was “ no work.’ ’ 2. The firm promised to send for him or to put him on when there wras work. 3. The firm later hired two new men. 4. The firm made no effort to get in touch with the man whom they had promised to send for. The charges of discrimination are not substantiated. The 5 weeks’ clause neither strengthens nor weakens the union’s case. The decision is based entirely on the failure of the firm to keep its promise. Immediate reinstatement is ordered. C a s e No. 1598.— Suspension of a shoe cutter (Referred to arbitration by the union March 27, 1928; hearing, March 28; decision, March 30) There was no question as to the quality of workmanship, it being extremely poor. No proof was presented that the man in question actually cut the shoes. The chairman would not under any circumstances reinstate an operative if positive proof was presented that he did the work. The firm made all sorts of statements as to what they would and would not do. This decision is not establishing a precedent of reinstating poor workmen. It is because of a threatening attitude toward any person or group who oppose them. Immediate reinstatement is ordered. C ase N o. 1651.— Suspension of four wood heelers— Equal division of work (Referred to arbitration by the union M ay 9, 1928; factory investigation M ay 9; hearing, M ay 12; decision, M ay 14) Immediate reinstatement of the four original men is ordered, with the fol lowing provisions: That the firm follow out the plan of equal division as was intended and out lined at the hearing held at this board. That the earnings be checked monthly and a memo, sent to the shoe board. C a s e N o. 1659.— Suspension of a trimming cutter (Referred to arbitration by the union M ay 24, 1928; factory investigation, M ay 24; hearing, M ay 25; decision, M ay 26) This case centers on one question. The firm emphatically states the oper ator wastes material needlessly on a majority of the jobs cut. The cutter admits he does not check off his leather. On the six case job that he was discharged for cutting high, the statement of the firm has been checked and found to be correct. The operator states there is no reason why he can’t cut the shoes down to the allowance of the firm, namely, 24 feet on pattern 110; 29 feet on patterns 105 and 118 and sole linings out of 13 feet per 36 pairs. The chairman, the agent, and the operator consider the allowance of the firm ample. Reinstatement is ordered under the following provisions: The cutter shall count his stock and verify the footage. The cutter shall notify the foreman of a shortage of leather or of broken stock. The cutter is held responsible for the footage being correct and cutting to allowance. C a s e N o. 1681.— Suspension of a French cord turner (Referred to arbitration by the union June 12, 1928; factory investigation, June 13; hearing, June 14; decision, June 15) The operator in question has been a crew member for almost a year. The work she did and for which she was discharged was, in the chairman’s opinion, poor. The operator, according to her own testimony, appears to have been heeding the advice of her shop mates instead of the instructions of the forelady. H A V E R H IL L SH OE B O A R D A C T IV IT IE S 39 The agent of the local stated she did not consider the work poor but qualified it by calling attention to the fact there was no extra snipping at the point of scallop. The firm does not insist on the snipping. They do, however, and have every reason to, expect and insist on a good quality of work. The forelady has in several instances reinstated discharged operatives at the agent’s request. On the operator's side there is a strong point in her favor. Although in this particular case of shoes the work was below the grade required, the supervisor states she can do good work if she so desires. The board hereby orders conditional reinstatement. The operative shall pay attention to the instructions of the forelady and do good work. C ase N o. 1701.— Suspension of a Ireer (Referred to arbitration by the union July 9, 1928; factory investigation, July 9; hearing, July 10; decision, July 11) From evidence presented at the hearing it is apparent the supervisor has had trouble with this operator in several instances for nearly two years. There is conclusive proof that the workmanship in this instance was very poor. In addition, the workman used abusive language to the supervisor and referred to the firm in abusive words. The agent states the firm threatened one and one-half years ago to get rid of this operator. This statement is not supported by fact. The chairman has much sympathy with the operator’s family but can not find one valid reason to try to protect an operator who will not protect himself. This discharge is confirmed. C ase N o. 1708.— Deduction of 10 per cent— General From evidence presented at the preliminary hearing held on July 16, the decision (R -1534) was dated and released July 17 and is self-explanatory. Fol lowing is a copy of the decision just mentioned: “ Reference to arbitration under date of July 12 reading “ The Shoe Workers’ Protective Union requests a hearing as soon as possible on Shoe Manufacturers’ Association firms deducting 10 per cent from the employees’ pay contrary to the agreement.” “ It will be noted that reference was not made to any individual factory; therefore, no investigation could be made. At the hearing, agreements were referred to by both sides but no evidence or agreement was produced showing any agreement in existence other than the working agreement dated December 16, 1925. “ Six factories are involved in the case, namely: Green Bell Shoe Co., Barr & Bloomfield, Hirshberg & Stein, Karelis Shoe Co., Farber Shoe Co., WrightGorevitz-McNamara. “ In the case of the Green Bell Shoe Co., the association asserts that there is a strike existing. The union denies this statement and declares the firm locked out their employees. “ The chairman is of the opinion that article 2 in the working agreement forbids any hearing where a strike or lockout exists. The chairman, therefore, orders the entire crew to report for work at the factory Tuesday morning, July 17, at the regular starting time or as soon after as possible, after being notified. The firm is ordered to put to work in their respective places immediately or as soon as possible all the workers who left their work of their own volition or were locked out by the firm or who were called out on strike by the union. Both parties to the agreement shall cooperate to this end. The chairman considers any evidence presented at the hearing held on this date in regard to 10 per cent or any other amount being deducted in this factory not legal until both sides of the agreement have complied with article 2 of the working agreement. “ The next two factories in the order named are members of the association. Their representative will receive due notice when the postponed hearing will be held. The next three factories in the order named will receive due notification individually as they are not members of the association. The union will receive notice of the date of the postponed hearings.” Both parties to the agreement having complied with the above decision, the chairman called a hearing to be held on July 19 for the purpose of taking up the original reference to arbitration. The six firms mentioned in this case are prac 40 CONDITIONS IN SHOE INDUSTRY IN H AVERHILL tically charged by the Shoe Workers’ Protective Union with the same offense although they differ slightly as to verbal acknowledgments, circumstances, and bates. The union charges these firms with deducting 10 per cent from the operators’ earnings (pieceworkers) before having a signed agreement with the union. The union asserts the manufacturers are not within their legal rights in deducting the 10 per cent, as there is in existence an agreement between the Haverhill Shoe Manufacturers’ Association and the Shoe Workers’ Protective Union. Three of these firms are not subscribers to the association. The union asserts that the first clause in this agreement dated January 30, 1928, a part of which reads: “ The workers shall return to work in their respective places and be paid 1927 prices” is final and binding to both parties to the working agreement. The union contends that the manufacturers have no right to nego tiate or attempt to negotiate an agreement with their employees; further, that the workers have no right to agree to or accept prices other than those agreed upon through proper union authority. The union also states that union officials informed the manufacturers by telephone that they could not deduct any amount until agreements had been signed. The union further contends that the Haver hill Evening Gazette news item as applying in this case was neither official nor authentic. The union also states that the manufacturers had no right to assume anything in so far as a reduction was concerned without new agreements being signed. The union contends further that the 10 per cent deduction was to be granted to the manufacturers only in exchange for an agreement containing certain valuable conditions for the benefit of the workers. The above with varia tions is substantially the union’s case. The association contends in the case of the Green Bell Shoe Co. that prior to the union granting a wage concession to any manufacturers, Mr. Greenstein, of the Green Bell Shoe Co., was led to believe by union officials he was entitled to and would be given relief in the form of a reduction. The association contends and the Green Bell Shoe Co. contends that no reduction was made until after they had learned through the columns of the Haverhill Evening Gazette that the union by a referendum vote and by the sanction of the council had agreed upon a 10 per cent wage concession. Further, that before any deduction was made from the workers’ envelopes, Mr. Greenstein, of the Green Bell Shoe Co., had taken the matter up with his employees and an offer was made that if the reduction was satisfactory work would be furnished which could not be furnished otherwise. It is stated by Mr. Greenstein and he also told the employees that any dissatis fied workers could call at the office at the end of the week and receive the 10 per cent. It is asserted by the association that as the other factories in the Haverhill shoe industry had received the benefit of the reduction in piece rates, to refuse the Green Bell Shoe Co. the same privilege would be a discrimination against that company and would force them to discontinue manufacturing shoes by placing them in unfair competition. The association further contends that the Green Bell Shoe Co. should be one of the first to receive the concession in view of the fact that it manufactures a cheaper grade of shoe than other manufacturers who have long since received the concession. The association emphatically asserts that it should receive the same consideration from the union for all its members, and that this has not been done. The Green Bell Shoe Co. contends that in many instances the workers when figuring their work slips deducted 10 per cent before depositing the same at the office. The association claims that this in itself is acknowledgment of the acceptance of the deduction. The evidence submitted by both parties in regard to other factories named in this case is of a like nature. It was brought out in evidence that prior to M ay 1 the Green Bell Shoe Co. applied in person to the general president of the Shoe Workers’ Protective Union for relief, and that on Mr. Nolan’s advice or suggestion the Green Bell Shoe Co. sent a communication to the District Council No. 1 stating “ Unless we obtain some relief from your organization we shall discontinue manufacturing shoes in about three weeks.” No evidence is at hand of a reply to this letter. On June 3 the Jonas Shoe Co. obtained permission from the manufacturers’ associa tion to negotiate with the union for a reduction for itself. On June 6 the Green Bell Shoe Co. obtained permission from the manufacturers’ association to negotiate with the union for a reduction for itself. The Green Bell Shoe Co. then wrote the district council asking for immediate attention in regard to its application for a wage concession. On June 4 the president of the District Council No. 1 signed an agreement with the Jonas Shoe Co. granting a reduction of 10 per cent on all piece rates effective H A V E R H IL L SHOE BO ARD A C T IV IT IE S 41 on date of signature. On June 12 a referendum vote was held by the Shoe Workers’ Protective Union and on the 13th day of June the Gazette carried the following news item: “ A wage reduction of 10 per cent on piece prices in all M cK ay factories was granted by the local shoe crafts of the Shoe Workers’ Protective Union in a referendum vote conducted yesterday and ratified by the district council late last evening.” On investigation the board finds that on either June 13 or June 14 Mr. Greenstein of the Green Bell Shoe Co. talked with his workers about the reduction, and said in effect that he had no orders on hand but as there had been a vote by the union accepting 10 per cent reduction, he intended under this arrange ment to go on making shoes, and if this was accepted that there would be work. On June 15, 10 per cent was deducted from the wages of all pieceworkers. On the following Monday he put in operation stock shoes which increased his pro duction to about normal. It appears that he did tell his workers or at least some of them if the reduction was not satisfactory to call at the office. The chairman can not ascertain that the last statement by the firm was made during the first or second week after the deduction. There appears to be no question that the workers protested against this arrangement immediately. It is apparent, how ever, that dissatisfaction arose within a short time as on the 25th day of June the union wrote the association a letter stating that the Green Bell Shoe Co. had refused to sign special agreements with the union and demanded that the association compel the Green Bell Shoe Co. to live up to the peace pact stating that unless they did this it would be necessary for the Shoe Workers’ Protective Union to take court action. The association replied to this letter, stating that this firm had not been given an opportunity to sign any agreement as no union council had presented the same. It was stated by Mr. Collins, agent of Local No. 9, that the council had voted that no manufacturer who had deducted 10 per cent from the workers’ envelopes would be given an agreement until this money had been returned. Mr. Bouvier, agent of Local No. 1, testified that on June 29 he called on Mr. Greenstein to negotiate an agreement and on that date no mention was made in regard to reimbursing the employees. Mr. Bouvier also stated at the meeting that Mr. Greenstein would not sign this agreement, as the date of expiration was one year from date and the Green Bell Shoe Co. desired an agreement for five months only. It is apparent to the board that Mr. Bouvier would have signed an agreement with the Green Bell Shoe Co. if it had been satisfactory to the firm. As chairman of the board of arbitration, it is my opinion that when the Green Bell Shoe Co. had made an application to the union for a reduced wage and this was not granted, if they could not continue without loss, the reasonable course to pursue would be to close their factory. The chairman also believes that the workers have to be considered and placed in the same position as workers in other factories. It appears that the Green Bell Shoe Co., acting on the information that appeared in the Gazette and also taking it up with its workers, was acting in good faith even though it was mis taken as to the legal status. The firm continued in operation at a 10 per cent reduction with at least partial consent of the employees and the knowledge of the union. If the chairman has any authority to make a decision on what the rights of the Green Bell Shoe Co. and the Shoe Workers’ Protective Union were before July 12 he finds that the Green Bell Shoe Co. has no right to rely on newspaper reports or to accept any statement of a worker or official of the union as a bona fide agreement. It is also the opinion of the board that this firm or any other should not be penalized if it acted in good faith. It appears to the chairman that there is one of three courses this firm must pursue: Continue to pay 1927 prices, sign a new agreement with the Shoe Workers’ Protective Union, or discontinue manufacturing. It is also the opinion of the chairman that the union should follow one of two courses: Either rescind the action taken by the union granting a reduction or grant every manufacturer an agreement of the same nature effective the same date. It is the chairman’s conviction that the following decision is not for the best interest of the workers and the industry but he is obligated to base his decision on the provisions of the working agreement. All factories in this case who are members of the associa tion or who come under the provisions of the peace pact are bound by the agree ment which provides that the workers be paid 1927 prices. Article 6 of the working agreement, paragraph 6, reads in part as follows: “ Every decision of said board of arbitration shall so far as it may be possible, relate back to and become effective as of, the date of the original claim for arbitration.” 42 CO N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L The board hereby orders the Green Bell Shoe Co. to pay 1927 prices on all work done on and after the date of this reference to arbitration and refund all deductions from that date. This refund shall be made not later than August 10, 1928. It is ordered that 1927 prices shall be paid until otherwise agreed upon. Decided August 1, 1928. In the case of Wright-Gorevitz-M cNam ara Shoe Co. an agreement was pre sented the firm that was signed by the president of the district council before presentation. A lengthy conference was held between Mr. Gill of the union and Mr. Wright of the firm. The agreement referred to was in evidence at the hearing. The question was taken up in regard to the number of cases the firm would have to guarantee to produce in a given time, beside other important clauses in the agreement. It is admitted by both parties that during the discussion Mr. Wright signed one copy of the agreement. After both Mr. Gill and Mr. Wright had apparently reached an understanding, a matter which had long been in dispute between the firm and the union was taken up by Mr. Gill but no satisfactory adjustment was made. After Mr. Gill had ascertained that this matter could not be adjusted satisfactorily to the union he was unable to enter a new agreement until the firm had complied with the provisions of the working agreement. The two parties agreed as to the facts in this case. The point in controversy is primarily a matter of the firm having in its employ operators who do not belong to the union. The peace pact specifically states: “ Except as may be otherwise agreed upon only members of the Shoe Workers’ Protective Union in good standing shall be employed by the manufacturer to perform operations in the manufacture of shoes. When a manufacturer lacks a sufficient number of union operatives to do his work before he can employ opera tives who are not members of the Shoe Workers’ Protective Union, he shall at once notify the union headquarters and give the union an opportunity to supply union operatives; if the union does not supply a sufficient number of competent operatives within 24 hours, then the employer shall have the right to employ operatives who are not members of the Shoe Workers’ Protective Union to fill the places of those the union is unable to fill; and the union agrees to accept such operatives into the union at the regular initiation fee, provided that the manu facturer, upon being notified that the union can supply union operatives states that he wishes to retain such operatives who are not members of the union; and such statement by the manufacturer shall place the said operatives in the same status as members of the Shoe Workers’ Protective Union. This is not to be construed as meaning that the union must take in any person or persons not having a clean labor record and manufacturers shall replace such operatives upon request from the union. “ Upon niring operatives who are not members of said union the manufacturers shall immediately forward in writing to the union the name and address of such operative. ” This matter was in controversy between the manufacturers’ association and the union during the period the firm was a member of the association and between the firm and the union since the withdrawal of the firm from the association. It was brought before the board of inquiry and was directed by that body that a settlement be reached between Mr. Bearak and Mr. Wright. It was evident a settlement had been reached as the case was not jDrought before this board. While it is apparent that the agent of Local 7 did everything in his power to have the matter straightened out according to the provisions of the agreement, the union, however, did not consider it important enough to refer to arbitration through the regular channels. It is also evident that had the matter been left entirely to the agent of Local 7 a settlement would have been reached long ago. Even now the union states that tnis matter is not up for arbitration (although it is considered one of the most important clauses in union agreements). The detail in this case is somewhat different from that in Case No. 1708 R -1 5 4 9 but the important facts in the union case are identical. The board hereby orders the Wright-Gorevitz-M cNam ara Shoe Co. to pay 1927 prices on all work done on and after the date of this reference to arbitration and refund all deductions from that date. This refund shall be made not later than August 10, 1928. It is ordered that 1927 prices shall be paid until otherwise agreed upon. Decided August 7, 1928, H A V E R H IL L SHOE BO ARD A C T IV IT IE S 43 Brief of manufacturer s’ association as presented by manager Fred L. Cooper The shoe manufacturers of Haverhill again appear before the board of arbitra tion to show the impossible position they are in because of unfavorable union conditions and high labor costs, which are restrictive and uneconomical. Our manufacturers sell their products to the country at large in competition not only with manufacturers whose factories are unionized, but also with those whose factories are free from the dictation of any union. The country manufacturers control their own factories as regards hours of labor and such union discriminations as overtime work, equal division of work and production of their crews, continuing in their employ only those whose work is satisfactory both as to quality and quantity. A large number of capable Haver hill shoe manufacturers have gone elsewhere to obtain these advantages, men who in their present locations are now doing a successful and profitable business, yet whose hearts from a home and social standpoint, in many instances, are still hitched to Haverhill. When firms of such high standing in the shoe world, who started their manu facturing careers in Haverhill, feel compelled to move out of town to successfully meet competition, it should cause us to reflect. W e regret that such concerns as Bancroft-Walker, Herman E. Lewis, Frank E. Adams, LeBosquet-Moore, C. V. Watson, Gale Shoe Co., Sam Shapiro, Geo. B. Leavitt, William H. Butler, George Dobbins, E. D . Haseltine, E. L. Thomas, Moss-Seamans, Dole & Waldron, M . T. Ornsteen (who has branch factories in Lowell and Marlboro), and many others, are not now employing Haverhill workers and citizens in local factories under the same wages and conditions that prevail in their present locations. The union has charged many times that Haverhill is in the throes of factory mismanagement. If this is so, there must be a definite reason for it— a reason sufficient to prevent better management from coming to our city. W e are, how ever, dealing with actual facts and not with theories, and it will be necessary for us to make better conditions for the present management. The union also contends that factories outside of Haverhill are able and willing to pay more than the manufacturers in Haverhill for some operations. This may be so, as it is within the province of the outside manufacturer to distinguish the skilled from the semiskilled and unskilled worker and pay them accordingly. In many instances, in the country factories, boys and girls are employed at low rates on unskilled operations while some unskilled operators in Haverhill earn from $35 to S45 per week. The union has presented in evidence many price lists from unionized centers. These centers are either noncompetitive or only partially competitive. They omitted to present information from the “ country” factories from which we feel our strongest competition, nor have they stated the earning capacity of any price lists submitted. W e have presented no evidence along these lines as we realize that we can not authenticate them, as a study as to conditions, earnings, etc., would be necessary in each instance to be of any value. Some locals in presenting their arguments before this board have seen fit to claim that membership in the association has been a deterrent to prosperity and that some manufacturers have been more successful since abandoning that membership. Facts do not verify this. W e learn that two nonassociation factories moved because labor costs were so high and two more nonassociation factories are now or have recently been negotiating with the union for a reduction in wage rates, stating that union refusal will compel them to move elsewhere where rates and conditions are more favorable. It appears that nonmembers are unable to cope with the present situation as well as association members. Haverhill's statistical figures for the year ending October 1, 1927, show a fall ing off in shoe production over the previous year of 1334 per cent and we would like to call the attention of this board to the prophecy made by the manufacturers just a year ago. A t that time figures were offered showing the increased pro duction of 1926 over the previous year. This, we believed, was due to the reduc tion in wage rates made by this board in 1924 and pointed out that trade condi tions indicated that prices of shoes were on the decline and a further reduction in wage rates would give the manufacturers an opportunity to maintain at least the 1926 production. The chairman of the board at that time, believing that the increased business showed a trend for the coming year, decided against the manufacturers and granted an increase to the workers. 44 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L What has resulted? Alman Shoe Co., nonassociation, liquidated; Anna Bell Shoe Co., nonassociation, failed; Beaucage & Morris, association, removed; Becker Bros., nonassociation, removed; J. Berkovich, nonassociation, failed; Bloomfield Shoe Co., association, liquidated; Brenner & Brody, association, failed; L. Callaghan & Co., nonassociation, liquidated; Colbuck Shoe Co., asso ciation, removed; B. E. Cole Co., association, liquidated; Dole & Waldron, nonassociation, removed; Emery-Dana-Tucker, nonassociation, failed; Garbelnick Shoe Co., association, failed; F. B. Heath, nonassociation, failed; Jaffarian Bros., association, removed; Kesslen Shoe Co., association, removed; A1 Knox Shoe Co., nonassociation, failed; Lynway Shoe Co., association, failed; MossSeamans Co., association, removed; Nox-All Shoe Co., association, removed; Paris Shoe Co., nonassociation, removed; Silsbv Shoe Co., nonassociation, failed; F. L. Thomas Shoe Co., nonassociation, removed; Thurston & Kelso, nonasso ciation, failed; Triangle Shoe Co., association, liquidated; Zubick Shoe Co., nonassociation, removed; Moses Brown Co., nonassociation, removed; Louis Sha piro, nonassociation, removed; Holland Bros., nonassociation, removed; David Shoe Co., association, failed. Of the above failures, 64 per cent were nonassociation factories, and 57 per cent of the removals were nonassociation. In addition to the above a prominent officer of the manufacturers’ association has taken over a factory in Marlboro. He is also financially interested in a factory in Lowell and he has many times said that if Haverhill conditions were more satisfactory, he would like to have all his interests under one roof in the city he loves and lives in. There is an unconfirmed rumor of another association manufacturer seeking a location to make his mail-order and chain store shoes out of town. The press has quite recently stated that a firm made up of two bright Haverhill young men, that are doing a volume business to chain stores in women’s turn shoes and are one of the largest employers of turn workers in the city have told the union officials that unless some relief is granted them in the way of a reduc tion in wage rates, they will seek a location elsewhere. This certainly is a sad showing for the city. Early this year the effects of the board’s 1926 decision became manifest to everyone who made a study of the situation, and the then chairman of the board of arbitration, who in December, 1926, was not convinced by our arguments at that time, on M ay 20, 1927, wrote a letter to both parties to the agreement which told of the situation as he saw it, and which was in substance what we had prophesied six months previously. W e quote from his letter as follows: “ The Haverhill shoe industry is in a critical situation. There have been failures, liquidations, and removals within the past few months, and further reductions of productive capacity are likely. No half-way measures will in my opinion save the situation nor do I see any ground for hope that the near future will be much better than the recent past. “ Haverhill’s output of shoes during the season now ended has fallen off from a year ago. The production of women’ s shoes in the United States as a whole was slightly larger than a year ago. Our loss of business was not sufficient alone to have created the present crisis; but coupled with the smaller production have been higher costs of materials, complex patterns requiring more labor, greater demands for quality on the part of the buyers, and in spite of all this substan tially lower prices paid by buyers to manufacturers. The inevitable result has been seriously unprofitable business for the manufacturer. “ This severe price situation will almost certainly continue. The retail distri bution of women’s shoes is passing into stronger hands. The buyer, not the manufacturer, makes the price. W^hile there exists an enormous surplus produc ing capacity, this situation is bound to continue. “ The low cost producers are going to get the business and maintain sound financial conditions. They will be able to operate fairly steadily and with greater efficiency than can possibly be attained with recurrent long periods of slack work such as characterize Haverhill. “ I see no likelihood whatever that Haverhill shoe workers will be able to retain their present wage rates. I agree that present wage rates are none too high to give a good yearly wage. Nevertheless economic factors are certainly going to control the outcome. Irrespective of any arbitrator or any existing union, the wage rates in Haverhill will, I fear, be drastically reduced during the next few years, and probably quite soon. Shoe workers must have work, and very little work will be available in Haverhill until labor costs are much lower.” 45 H A V E R H IL L SH OE B O A R D A C T IV IT IE S Now, Mr. Chairman, this is a resume of the situation as seen by an expert em ployed jointly by the manufacturers and workers to serve impartially as the chairman of the board of arbitration. This opinion was given after constant contact with the Haverhill situation, and after years’ service. W ho could possibly be in a better position to judge the facts and draw proper conclusions? For six years the manufacturers have presented the same facts to the union officials and have met with only partial response. The proof of the truth of these statements is the large percentage of withdrawals already referred to. W e herewith quote from the United States statistics the average [hourly] earnings of a few of the operations in the several departments of shoe factories from the country as a whole, also Massachusetts, Maine, and New Hampshire: Country Cutters_________________ Skivers_________________ Cementers_____________ Lining makers_________ Top stitchers__________ Vampers (female)_____ Vampers (male)_______ Assemblers_____________ Bed operators_________ Turn lasters____________ Goodyear stitchers____ Edge trimmers_________ Edge setters____________ Treers_________________ $0. . . . . . . . . . . . . . 808 486 340 413 486 531 741 596 700 870 776 785 766 611 New Hamp shire Maine $0. . . . . . . . . 676 387 331 384 416 505 586 560 632 $0. . . . . . . . . 556 398 274 325 379 503 546 567 592 . . . . 683 719 670 568 . . . . 538 571 582 470 __ Massa chusetts Massachusetts (48-hour week) $0. . . . . . . . . 1. . . . . $41. 28. 18. 24. 28. 30. 34. 32. 35. 48. 39. 42. 40. 34. 857 598 386 504 603 635 709 676 737 009 825 877 848 710 05 70 52 19 94 48 03 45 37 00 76 09 70 08 In contrast to the al figures we present another table based on earnings taken from actual pay rolls. ■five consecutive weeks are: $65. 47. 34. 74. 69. 43. 41. 53. 76. 79. 90. 82. 76. 70. 101. 90. 93 02 39 71 38 92 48 42 91 64 39 58 93 15 43 99 $69. 45. 53. 61. 64. 52. 57. 57. 79. 72. 86. 83. 68. 72. 99. 98. 45 20 80 67 47 23 02 69 52 93 74 90 04 42 55 82 $69. 47. 67. 67. 69. 49. 68. 56. 82. 69. 87. 89. 70. 60. 98. 98. 87 32 14 30 77 95 13 07 54 54 27 35 81 28 12 12 $69. 47. 75. 56. 73. 57. 68. 63. 81. 81. 83. 83. 58. 68. 100. 91. 04 69 42 41 09 54 43 89 41 63 92 72 44 03 94 62 $54. 45. 43. 44. 75. 56. 59. 62. 82. 81. 80. 87. 80. 71. 101. 100. 45 61 75 04 14 76 74 28 08 69 07 80 18 48 15 26 Notwithstanding these facts the union agents are requesting increase on nearly every operation in the factory in percentage up to 50 per cent on base prices and as high as 900 per cent on extras. You will recall, Mr. Chairman, that some shoes figured for treeing before the board, that the advances requested showed a total increase in the cost of that operation varying from 15 to 96 per cent. W e can not believe that these facts are appreciated by the rank and file nor do we believe that you, as chairman of this board and a citizen interested in Haver hill, can see justification in such requests. With the continued migration of Haverhill shoe factories there comes a need foi reflection, of finding the reason for these removals, of studying the causes for so many manufacturers deciding to leave the city. W e present the actual recent withdrawals as concrete proof that the existing prices and conditions are impossible for further growth and the need of definite modification to retain the few manufacturers who are now left. W e are again nearing the beginning of a new year. In accordance with the peace agreement, hour and piece rates are in controversy and on the decision of the board depends in a great measure the future of the Haverhill shoe industry. 24011°— 29------- 4 46 CO N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L Manufacturers must sell shoes to employ union shoe workers and in order to compete successfully not only with shoe manufacturers who employ union workers but workers who may not be affiliated with any union, they must have reductions in labor costs of approximately 20 to 25 per cent. W e do not expect nor do we ask the board to fix prices as low as either the country as a whole or Maine or New Hampshire averages, but we must at least be on a fair basis with our competitors. Our case is now in the board’ s hands and we shall expect that the decision will be such as to permit the manufacturers not only to continue but to increase their business and to attract new manufacturers to locate in Haverhill. W e desire to see the workers prosperous and our factories run on a 52-week basis. W e ask the board to consider carefully all the facts and in so far as possible give careful consideration in its decision as to the skilled, semiskilled, and un skilled operators, making prices accordingly. Brief of Shoe Workers’ Protective Union as presented by Norman Ware, industrial engineer and statistician of the Labor Bureau (Inc.), New York City [The Labor Bureau (Inc.) is not connected in any way with any national, State, or city labor department or bureau. It is entirely independent and, as in this case, usually acts as an attorney for labor organizations in arbitration cases.] W e intend, Mr. Chairman, to make this brief short and sweet. W e have a clear case for an increase in wages,, a case that needs no great amount of explana tion, and we shall present our facts knowing that you will decide upon them fairly and wisely. The manufacturers will come to you, no doubt, with the usual sob story. They will probably tell you that business is terrible, a wage increase unthinkable and cut needed. They will give you a glowing picture of the future prosperity of Haverhill if only they can get a cut, the same picture they gave the last chair man in 1924. W e could do the same'but we prefer facts to melodrama and all the facts to some of them. The first fact in connection with the shoe industry in Haverhill in the past few years is that we had a war. That war did a number of things to the shoe industry in Haverhill and elsewhere and to every other industry in the country. It created a greatly increased demand for shoes at higher and higher prices. It invited everyone with a little capital to go into the shoe business and every firm already in the shoe business to add to its plant. After the war the shoe business, like every other, had to get back to normal. It had to reduce its stocks, factories, number of workers, and everything else. This was done from 1922 to 1925, bad years for the shoe industry and for many others. Some indus tries managed this deflation better than others. Everyone knew the war could not last forever and some were wise enough to salt away a pai& of their war earnings to carry them over the readjustment that was bound to come. The shoe manufacturers of Haverhill seem not to have done that in many cases and naturally they suffered for their want of foresight. But that is all past and we propose to make our case on present conditions and not on past mistakes. The thing we want to make clear at this point is that this deflation was finished by January 1, 1925, and that since then the shoe industry in Haverhill has been going forward and is now 50 per cent better than in 1924. This improvement has been regular and healthy and warrants our belief that the industry is now in a position to return to us some part of the losses we took during the deflation. In most industries, the deflation cost the wage earners less than it cost the shoe workers of Haverhill and in practically all of them a considerable part of that loss has been regained. This is common knowledge and we shall not bother you with masses of statistics to prove it. I will cite only one instance from my personal knowledge. In the clothing industry in the city of Rochester, the work ers received a cut of 15 per cent about 1921. They regained 10 per cent of that within two or three years and are now working on a scale that is only 5 per cent lower than their war-time rates. The clothing industry is, like the shoe industry, a highly competitive one. It is not our business to criticize the manufacturers of Haverhill, but there is one point in their attitude that needs mention. For four years they have talked to this board as if the Haverhill shoe industry was the only industry in the United States, as if no war had been fought and no general deflation had been borne. W e ask you, Mr. Chairman, to correct this point of view from your own knowl edge. There was nothing peculiar about the condition of the Haverhill shoe industry in, these years unless it was the failure of the manufacturers to prepare for it. The really peculiar thing, the extremely astonishing thing, is that after 47 H A V E R H IL L SHOE BO A R D A C T IV IT IE S the deflation is all over and healthy progress has come about, they should come to you to-day and ask another reduction in wages. Earnings of Haverhill shoe workers.— The shoe board was established in Haver hill about the beginning of 1924. In M ay it made a cut of about 25 per cent in wages. The manufacturers promised that this would bring more business to the city, but it did not, and in 1925 they came again to the shoe board to ask for a further general reduction. This was not granted, but some adjustments were made. In 1926, after the Haverhill shoe industry had had the best year since the deflation and was very prosperous, we asked for the return of some part of our 1924 losses. This too was refused, and we remain to-day practically on the same level as we found ourselves after the reduction of 1924. W e come again this year to ask a restoration of a part of the 1924 cut. W e ask it for three main reasons: (1) Our earnings are low; (2) the business is prosperous; (3) we have suffered under the agreement. Earnings: W e shall prove to you the need for higher rates on the grounds of low earnings by establishing two things— (a) that our earnings are low as compared with 1924, 1925, and 1926, (b) that our earnings are low as compared with other shoe workers in Massachusetts. W e coniine ourselves to Massachusetts simply because we live in Massachusetts and work here. W e could, of course, compare our earnings with Brooklyn or Germany or the South Sea Islands but it would not mean anything. W e pay Massachusetts prices for food, clothing, rent. The manufacturers compete with Massachusetts firms. If we go beyond the State we get into all sorts of difficulties. In Table I are found the average weekly earnings of Haverhill shoe workers from January, 1924, to September, 1927. The lowest weekly earnings in that period were $16.63 for the month of December, 1925. The highest were $30.67 for September, 19^6. The average weekly earnings for 1924 wTas $23.71. The average for 1925 was $23.78. And the average for 1926 was $25.02. W e can not give you the average for 1927 for the simple reason that the year is not over, but we have figures for nine months of this year, and we shall compare them with the same 9-month period in previous years. In 1924 the average weekly earnings for the first nine months of the year for Haverhill shoe workers w~as $23.94. This is 23 cents higher than the average for the year because, as you know, the last three months of the year is usually a dull season. In 1925 the 9-month average was $24.42. In 1926 it was $25.59, and this year $24.93. WTe ask you first, Mr. Chairman, if you think these wages are high? If you think that $24 and $25 a week is a good wage for skilled workers or for anyone else? If you think they can be reduced and allow the workers to live? And we ask you to notice that in spite of the improvement in the industry since 1924, the shoe workers are getting only $1.01 a week more than they got in the deflation year of 1924, and 66 cents a week less than last year. It seems to us that the manufacturers should have considered these figures very carefully before asking a further reduction. It is no exaggeration at all to say that this demand of the manufacturers for a reduction in earnings of $24 and $25 a week is a matter of ife and death to the workers. T able I .— Average weekly earnings in Haverhill boot and shoe industry [Massachusetts Department of Labor and Industries. “ Employment and Earnings in Representative Manufacturing Industries.” Monthly press releases] Month 1924 1925 1926 1927 January_______ February_______ March_________ April___________ M ay___________ June-----------------July____________ $21. 05 25. 60 27. 94 21.51 19. 38 25. 33 19.99 $19. 95 23. 23 28. 25 24. 77 21. 92 20.09 24.10 $23.93 26.64 28.13 22.44 23.00 24.19 23.24 $23. 68 25. 62 24. 82 27. 85 25.02 21.99 24.40 Month 1924 August_________ $25.31 September______ 29.34 October________ 27. 34 22. 54 November_____ December._ . 19.13 9-month av___ 23.94 12-month av___ 23. 71 1925 1926 $28. 52 28. 96 27. 48 21. 50 16. 63 24. 42 23. 78 $28.07 30. 67 27.20 23. 37 19. 38 25. 59 25.02 1927 $25.70 25.29 24. 93 In Table II we show the average weekly earnings for boot and shoe workers in Massachusetts as a whole in 1926 and 1927. Taking the same 9-month period, we find that the earnings for Massachusetts as a whole are lower than those of Haverhill. For 1926 the Haverhill figure was $25.59 and the Massachusetts figure $22.99. In 1927 the Haverhill figure is $24.93, the Massachusetts figure, 48 C O N DITION S IN SH OE IN D U ST R Y IN H A V E R H IL L $23.36. This difference is to be expected because the figures for Massachusetts as a whole cover small towns, villages, and the country where all values and prices are lower than in a city like Haverhill. At that the difference is very little, and if the living costs were taken into consideration it would be found that the real earnings in Haverhill are lower than in the State as a whole. But the important thing here is not difference in actual figures but the difference in trend. In Haverhill for these two years earnings have fallen 66 cents a week. In Massachusetts they have risen 37 cents a week. This means that the Haver hill shoe worker is losing to-day, in comparison with his fellow-workers through out the State, a total of $1.03 per week. W e shall show later that this is not due to a shortage of work in Haverhill as compared with the State, but to increased rates in Lynn, Boston, and other places. Outside of Haverhill the shoe workers are getting back part of their losses. Here they are asked to take further reductions. T able I I .— Average weekly earnings in Massachusetts boot and shoe industry [Massachusetts Department of Labor and Industries. “ Employment and Earnings in Representative Manufacturing Industries.” Monthly press releases] Month 1926 1927 January _ __ __ __________ February _ __ __ __ March __ _________________ April _____ _____ ____ _____ M ay___ _________ _________ $21. 67 22. 65 24.24 21.34 21.73 $20.86 23.68 23. 87 22.99 22. 75 Month 1926 June__________ _________________ $22.43 July_____________________________ 23. 36 August__________________________ 24.99 September. _ ............................. ..... 24. 52 9-month average_______________ 22.99 1927 $21. 56 23.84 25. 55 25.15 23. 36 In Table III we give you the earnings in 1926 and 1927 for the three out standing shoe towns of Massachusetts, outside of Haverhill. W e have selected these simply because they, like Haverhill, are known all over the country to be shoe centers with a long history of shoemaking behind them. They are Brock ton, Lynn, and Salem. In Brockton weekly earnings have risen from $23.07 in 1926 to $24.12 in 1927, an increase of $1.05 a week against our loss of 66 cents a week. In Lynn weekly earnings are way above those of Haverhill— $29.46 in 1926 and $28.94 in 1927, a drop of 52 cents against our 66-cent loss. In Salem the weekly average of 1926 was $24.22 and in 1927 it was $25.92, an increase of $1.70, against our loss of 66 cents. This means that during the last year the Haverhill shoe workers have lost per week $1.71 compared with Brock ton ; 14 cents compared with Lynn; and $2.36 compared with Salem. W e believe that with this before you our request for an increase will seem reasonable and just. T able I I I .— Average weekly earnings in the boot and shoe industry of Brockton, Lynn, and Salem [Massachusetts Department of Labor and Industries. “ Employment and Earnings in Representative Manufacturing Industries.” Monthly press releases] Brockton Lynn Salem Month 1926 1927 1926 1927 1926 1927 January..___________ ______ February. _ _ _______________ March_______________________ April__ ___________________ M ay---------------------------- 1------------- --- ---------- __ June___ July--------------------------------------August— ________________ September___________________ $23.12 23. 60 23. 62 19.95 20. 61 23. 00 24.09 25.97 23. 63 $22.05 23.13 23. 66 22. 36 24. 02 25. 57 25. 05 25.99 25.29 $29.14 29. 26 30. 36 28.88 29. 66 28. 73 29. 66 29. 56 29. 93 $28.30 29.48 29.28 26.68 28.93 27. 85 29.09 30. 26 30. 57 $23.99 23.68 24.22 24.14 24.20 24. 79 24. 50 24. 35 24.09 $25. 36 25.86 26. 78 25. 85 25. 82 25.11 25. 70 26.20 26. 57 Average, 9 m onths............. __ 23. 07 24.12 29.46 28.94 24.22 25.92 Condition of the industry output.— So much for the condition of the Haverhill shoe workers. W e shall now show you a very different picture— the condition of the Haverhill shoe industry, out of which both workers and manufacturers H A V E R H IL L SH O E BO A R D A C T IV IT IE S 49 are paid. W e can not show you how much the manufacturers have made, because they are the only ones who know and they won’t tell us or you. This is one of the weaknesses of arbitration in Haverhill. Arbitration is based on facts rather than on bargaining strength. The union gives up its chief bargain ing weapon, the threat of strike, and agrees to settle wage rates on facts and figures. But the manufacturers are the only ones who have the facts and they will not give them to us. They may have good reasons for not telling us how much money they are making or losing. W e suppose they have. But that does not alter the fact that we are at a disadvantage in arguing on facts when we are refused the most important ones. Accepting this limitation we shall show that the shoe industry in Haverhill has been advancing and prospering since 1925. W e have shown that the workers are not advancing and proceeding. And a further conclusion is equally simple and just: That we should get a share in the new prosperity as we took our share, if not more, in the bad times of 1923-24. It is generally admitted that the output of a factory or city is a good indication of the state of business. If Haverhill is making more shoes than in 1924, it is fair to assume that business in Haverhill is better than in 1924. It might be that these shoes are sold at lower prices and that the actual amount of money from them is less. Later we shall produce figures to show that this is not the case. Here we take output alone as a sign of good business and we think no one will question its usefulness. Since 1923 the shoe manufacturers of Haverhill have been telling the shoe board that business is rotten. They said it every day and all day for four years, in season and out of season. It became a habit of theirs. You know, M r. Chairman, that if a thing is repeated often enough it makes no difference how false it is, people will sooner or later come to believe it. That is one of the commonplaces of advertising. It is the main thing in a great branch of medicine. Mr. Coue popularized this practice and for some time people went around say ing “ Every day in every way I am getting better and better.” This is what the Haverhill manufacturers have been doing for four years, only instead of saying better and better, they have said worse and worse. If they had said better and better they would now see that they are cured. But while their business is actually getting better and better they are getting sicker and sicker because they have got the habit of saying so. The chamber of commerce should look into this. Everyone in Haverhill should look into it. If Mr. Coue were not dead I should advise the Haverhill manufacturers to send for him. But frankly and seriously we believe that the real trouble with Haverhill is mental. The manufacturers have said business is rotten for so long that they have come to believe it, for no other reason than that they have said it. Other people too have been mesmerized by this phrase, but the facts prove the opposite, as we shall show. This unhappy habit of the manufacturers is, however, not confined to the shoe industry nor to Haverhill. It is a common practice everywhere. W e have yet to hear of a manufacturer, unless he is a professional optimist like the late Judge Gary, who ever really admitted that business was good. If it is very good, the most he will admit is that it is not bad. When it is good, he is accus tomed to call it rotten. Attitude of manufacturer.— This is not because manufacturers are liars. They are just being careful. If they admit that business is good they know that workers will ask for more money; the Government will ask for more taxes; and that friends and customers will ask for favors of various sorts. So they have got the habit of saying that business is bad. This has been strengthened by the easy money they made during the w^ar. Some of them have come to regard war profits as normal and when they make less they think they are ruined. During the war they could not help making money. If they bought leather one day at a dollar it would be worth $1.50 the next, through no effort on their part. When they started to make a shoe to sell for $3 they found that the price had risen to $5 while it was being made. They got exaggerated ideas of reasonable profits and what is worse, they found no need for careful management. War business hurt their morale and some of them have taken a long time to get over it. And we believe that if they had put the same energy into problems of financ ing and manufacturing that they have into their efforts to get wrage cuts, they would be ready to-day to give us an increase without argument. W e ask you, Mr. Chairman, to ignore any sob story the manufacturers may tell you unless it is backed up by facts and figures of profits and losses. W e ask you not to consider individual firms but the shoe industry of Haverhill as a whole. W e are sorry to see firms fail and move away from Haverhill, but it is the Haver 50 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL hill shoe industry and not particular firms in which we and you are interested. If that has improved it means that business is good, whatever may happen to John Doe or Richard Roe. No one likes to see old firms fail but they do fail when they do not adapt themselves to new conditions, and rates must be set in relation to the competence of the Haverhill shoe industry to pay them and not on the incompetence of any individual establishment or any group. For four years this board has been told that Haverhill is losing business to the surrounding districts. Here in Table IV we present the figures of Haverhill and the surrounding district on output of pairs of women’s shoes from 1924 to 1927. In the spring of 1924 the average daily output of women’s shoes for Haverhill w^as, in round number, 30,000 pairs; in the spring of 1925 it was 33,000; in the spring of 1926 it was 48,000; and in the spring of 1927, 38,000. This shows an in creased production in 1925 over 1924 of 10 per cent; in 1926, 59 per cent; and in 1927, 27.5 per cent. The average annual increase of 1925-1927 over 1924 was 32 per cent. Comparing fall output for the same period we find a similar healthy advance. The daily output for the fall of 1924 was, in round numbers, 32,000; 1925, 43,000; 1926, 45,000, an average annual increase of 38 per cent. You will see from these figures that every year has been better than 1924 for both the spring and the fall. You will also notice that there has been a falling off in the spring of 1927 as compared with 1926. If wages were set on every fluctuation in the industry we should have had a big increase in rates last year and a slight reduction this year. But they are not. They are set on the general trend of the industry, which has been upward since 1924. And besides we did not get a general increase last year. If the employers had come to this board last year and had said: “ W e have had a very good year and want our workers to benefit by it along with u s” and had offered us a 25 per cent increase, they would to-day be entitled to ask for a slight reduction with better grace. But they did not do that. They fought our request for an increase and we did not get one, and they have no moral right to come here to-day and ask for a reduction. 1926 a good year.— The spring slump of 1927 left the industry still nearly 28 per cent better off than in 1924. It was not peculiar to Haverhill. Every in dustry felt it, and it was quite natural and necessary after the boom year of 1926. W e can produce pages of figures to show that 1926 was the best year in almost every industry since 1910. It was so good that no one expected 1927 to beat it. The industrial system had to take a breathing spell and it took it in the spring of 1927. Many industries, did not recover in the fall and are still depressed, but the shoe industry in Haverhill did recover in a remarkable fashion, as we can show. T able IV .— Output of shoes in Haverhill, surrounding district, and in the United States, 1924 to 1927 [Average for spring of 1924=100.0] Average daily output, all shoes 1 Period Pairs 1924: Spring____________________ Fall______________________ 1925: Spring____________________ Fall____ _____ ___________ 1926: Spring____________________ Fall______________________ I 1927: Spring____________________ i Surrounding district Haverhill 30,020 32,090 33,080 43, 250 47, 620 45,376 38,260 1 Data from Haverhill Shoe Board. 2 Data from U. S. Department of Commerce. in the United States. Index number 100.0 106.9 110.2 144.1 158.6 151.2 127.5 Pairs 103,490 111, 040 106,360 108, 350 106,030 116, 748 106, 435 Index number 100.0 107.3 102.8 104.7 102.5 112.8 102.8 Average monthly output of women’s shoes in United States 2 Pairs 8,568,000 8,788,000 8,495,000 8,968,000 8, 771,000 9, 624, 000 9,110, 000 Index number 100.0 102.5 99.1 104.6 102.3 112.3 106.3 Monthly press releases on Production of Boots and Shoes Table V gives the actual production, in cases of shoes, of Haverhill for four months in 1925, the whole of 1926, and the first nine months of 1927. You will see that the spring of 1927 was behind the spring of 1926. But we draw your attention, in particular, to the figures for August and September, 1927, as against those of 1926. You will see that in August, 1926, the total production of Haver hill was, in round numbers, 40,000 while in August of 1927 it was 42,000. In September of 1926 it was 49,000 and in September of this year 46,000. Adding these two fall months together we get a total of 88,425 cases last year, compared 51 H A V E R H IL L SHOE BO ARD A C T IV IT IE S with 88,439 this year, an increase of 14 cases over the same two months in the biggest year in the shoe industry since war deflation. This means, M r. Chair man, that the spring slump was simply a breathing spell and that the shoe industry this fall had recovered and had passed the peak year of 1926. W e doubt if many industries can show a recovery like this and it proves conclusively that the Haverhill shoe industry is in a healthy and expanding condition and that our request for a wage increase is well founded on the increasing prosperity of the business since 1924. These figures are supplied by the Haverhill Chamber of Commerce and are as close to date as they have been compiled. W e have every reason to believe that the fall of this year was as good as, if not better than, last fall, which we have already shown was more than 40 per cent better than 1924. The spring we know was 59 per cent better in 1926, and 27.5 per cent better in 1927. T able Month V .— Cases 1 of shoes shipped from Haverhill 1925 January________________ February __ M a r c h .____ April__________ __ M ay__________ ___ _ June___________ ____ .. 1926 1927 Month 1925 1296 26,169 33, 776 46, 273 41,920 38,842 34, 775 25,185 32,050 42, 518 38, 603 32, 284 26, 793 July ____ ______ ______ August _ September ___ October __ ___ __ November. . ___ __ December-__ _____ 45, 652 36, 379 23, 542 21, 936 32, 682 39, 792 48, 633 41, 205 28, 271 18,039 1927 26, 215 42,177 46, 262 i Average, 36 pairs in a case. So much for Haverhill itself. Let us compare Haverhill and the competing surrounding district. The manufacturers made a great deal of this competition in past hearings. W e do not think they will say much about it this year. In Table IV we also give the output of the surrounding district (figures from the shoe board). Like Haverhill, there has been an increase, but unlike Haverhill, it is so small that it is very hard to find. The spring of 1925 showed an increase of not quite 3 per cent over 1924; 1926 showed an increase of 2.5 per cent; and 1927, 2.8 per cent. Compare these increases with the Haverhill figures, 10 per cent, 59 per cent, and 27.5 per cent and you will see how much business Haverhill manufacturers are losing to the surrounding district. The fact is that the sur rounding district is almost at a standstill and losing to Haverhill at an astonishing rate. The fall figures tell the same story. The surrounding district gained 7.3 per cent in the fall of 1924 over the spring of that year; it gained only 4.7 per cent in the fall of 1925 and 12.8 per cent in 1926, compared wTith the spring of 1924. Compare these gains with those of Haverhill— 6.9 per cent in 1924, 44 per cent in 1925, and 51 per cent in 1926. There is, in fact, no competition from the surrounding district. If there ever was it has long since disappeared. We suspect it is another bogy. In the fifth column of figures in Table IV , we give the output of women’s shoes for the United States as a whole. It clearly shows how Haverhill is holding its place as a shoe center and improving that place every year. The women’s shoe output of the United States increased slightly every season but one, com pared with 1924. Taking the spring first, the year 1925 shows a loss of almost 1 per cent, 1926 shows a gain of 2.3 per cent, and 1927 a gain of 6.3 per cent. Again compare these with the gains of Haverhill— 10 per cent, 59 per cent, and 27.5 per cent. The fall figures for the United States as a whole show a gain in 1924, over the spring, of 2.5 per cent; in 1925, a gain of 4.6 per cent; in 1926, a gain of 12.3 per cent. Compare these with the Haverhill gains for the same periods— 6.9 per cent, 44 per cent, 51 per cent— and it is evident that Haverhill, since 1924, has been getting more and more of the women’s shoe business of the country as a whole. Improvement in industry.— But, Mr. Chairman, we have other ways of showing the improvement in the Haverhill shoe industry as compared with the past, and as compared with other shoe towns in Massachusetts. The Massachusetts Department of Labor and Industries publishes a census of manufactures, and from the 1926 press releases we have taken a complete picture, under five heads, of the condition of the boot and shoe industry in Haverhill, Lynn, Brockton, Lowell, Beverly, Chelsea, Everett, Newburyport, and Worcester. W e think this about covers the situation but we can get more if anyone wants them. The towns are chosen simply for the size of the shoe industry. The figures are given for two years, 1924 and 1926. 52 CO N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L W e shall take first the three major shoe cities, Haverhill, Brockton, and Lynn In Table V I will be found five items considered by the Massachusetts Depart ment of Labor and Industries as showing the condition of the industry. These are: Capital invested, value of stock and materials, amount of wages paid during the year, average number of wage earners employed, and the value of the product. Capital invested is, as you know, a good indicator of an industry’s condition and the trend over a number of years. If the industry is in bad condition, capital will be withdrawn by removals, failures, or transfers to some other place. If it is prosperous it will attract capital and the amount thereof will increase. The manufacturers have told us of manufacturers leaving Haverhill. If they are, and are not being replaced, it will show in this item. The value of materials used is another good indication of the relative condition of the industry in the various towns. If prices have gone up the value of materials would not showTthe actual increase of business over a period of years in one place. But as prices move for all shoe manufacturers in Massachusetts in the same degree, the figure is useful and proper for a comparison of Haverhill and other places. The total amount of wages paid, together with the average number of wage earners, will show com parative earnings, and the final item, the value of the product, is the best of all, because it shows the total amount earned by the industry in each place during each year. This figure should be compared with our figures for output to show that our increased output has not been gained by lowering the price of shoes. ^ From 1924 to 1926 the capital invested in the shoe industry in Haverhill in creased 1.17 per cent. This is not a great increase but it disproves completely the assertions of the manufacturers that the shoe industry in Haverhill has declined. And when it is compared with Lynn and Brockton it is really aston ishing. While Haverhill has increased its shoe capital by more than 1 per cent, Lynn has lost more than 16 per cent and Brockton has lost more than 9 per cent. In other words, Haverhill has done nearly 18 per cent better than Lynn and more than 10 per cent beter than Brockton. The second item, the value of materials used, has increased over 16 per cent in Haverhill, over 15 per cent in Lynn, and has decreased over 11 per cent in Brockton. In this respect, too, Haverhill stands out, nearly 1 per cent over Lynn and 27 per cent over Brockton. The amount of wages paid in Haverhill has increased 4.21 per cent, in Lynn 10 per cent, and in Brockton it has decreased more than 13 per cent. This is a very interesting figure. Haverhill has increased its capital over 1 per cent and its wage bill over 4 per cent. Lynn has lost 16 per cent of its captia.l and has increased its wage bill 10 per cent. This 16 per cent less capital in Lynn is pay ing 10 per cent more wages, while in Haverhill, 1 per cent more capital is paying only 4 per cent more wages. T able V I.— Census of manufactures in leading shoe 'producing centers of Massa chusetts: Boots and shoes, other than riwber [Massachusetts Department of Labor and Industries. Item Capital invested: 1924............................ ............... 1926________________________ Amount of change__________ Per cent of change__________ Value of stock and materials: 1924________________________ 1926__________________ _____ Amount of change__________ Per cent of change__________ Amount of wages: 1924____________ ___________ 1926________________________ Amount of change__________ Per cent of change__________ Average number of wage earners: 1924________________________ 1926________________________ Amount of change__________ Per cent of change__________ Value of product: 1924________________________ 1926________________________ Amount of change__________ Per cent of change.................. Census of Manufactures, 1926. Haverhill Lynn Press releases] Brockton $9, 094, 745 $9, 201, 466 +$106, 721 +1.17 $12, 518, 287 $10,440,196 - $ 2 ,078,091 -1 6 .6 $27,110,989 $24,498,253 —$2,612, 736 - 9 . 64 $12, 489, 209 $14, 523, 616 -f $2,034, 407 +16. 29 $12, 052, 938 $13, 915, 747 +$1, 862, 809 +15. 46 $22, 319, 267 $19, 838, 678 —$2,480, 589 $9, 831, 271 $10, 245, 617 +$414, 346 +4. 21 $8, 748, 458 $9, 626, 009 +$877, 551 +10.0 $12,044, 363 $10,425, 820 -$ 1 , 618, 543 -13.44 8,043 8, 350 +307 +3. 81 7, 258 7, 814 +556 + 7 .7 -1,102 $28,474, 257 $31, 935, 560 +$3, 4G1, 303 +12.16 $27,010, 842 $28, 717, 028 +$1, 706,186 + 6. 32 $44, 272,865 $39,195,690 —$5,077,175 -11.47 - 1 1 .1 2 -1 1 . 25 53 H A V E R H IL L SH OE B O A R D A C T IV IT IE S The average number of wage earners in Haverhill increased 3.81 per cent from 1924 to 1926. In Lynn, the increase has been 7.7 per cent. Dividing the number of workers into the wage bills, we find that average yearly earnings of Haverhill workers have gained only 0.38 per cent while Lynn workers have gained 2.2 per cent. In other words, the increase in wages in Haverhill has been almost wiped out by the increase in the number of those who have to share it, while in Lynn the average yearly earnings have increased 2.2 per cent in spite of the increase in the number of workers. In Brockton the number of workers has fallen 11 per cent. The last item— the value of the product— is the best indication possible of the condition of the industry. It represents the money value of the entire boot and shoe output of each of the three cities in 1924 and in 1926. In Haverhill the value of the product has increased 12.16 per cent. In Lynn it has increased only 6.32 per cent or about half as much as in Haverhill and in Brockton it has fallen off 11.47 per cent. W ith this figure, of an increase of over 12 per cent in the value of the shoes made in Haverhill, we do not see, Mr. Chairman, how anyone can ask you for a reduction of rates. But we do see how we can ask that we be given a share of this increase. W e helped make it. W e have received no adequate part of it. And we think it is time that we should. W e wish you would keep this figure in mind. While the workers’ rates have been reduced about 25 per cent since 1924, and while o u t earnings this year were only $1.01 a week above 1924, and were only $1.31 above in 1926, the total value of the products of the industry had risen 12.16 per cent from 1924 to 1926. W e think it not unreasonable to ask some share in this increase. In Table V II we present similar figures for the boot and shoe industry of Lowell, Beverly, Chelsea, Everett, Newburyport, and Worcester, between 1924 and 1926. Taken with the figures already analysed for Lynn and Brockton, we have a complete picture of the shoe industry of Massachusetts between 1924 and 1926. The six towns in this table are not chosen by us. They are all the towns for which the Massachusetts Census of Manufactures has issued the 1926 boot and shoe records. T able V I I .— Census of manufactures, boots and shoes (other than rubbers), 1924 and 1926 [Massachusetts Department of Labor and Industries. Census of Manufactures, 1926. | Item Lowell Beverly Chelsea Everett Press releases] Newbury Worcester port Average number of wage earn1,223 1924. ............................. 1,277 1926-...................- ................. +54 Change.......................... ___ Invested: 1924-........................................ $1,105, 526 1,115,860 1926__________ ______ _____ +10, 334 Change............................ . Capital value of stock: 2, 256,945 1924__________ _______ ____ 1926.......................................... 2, 382,240 +125,295 Change........ ................... . Amount of wages: 1924_________ ________ ____ 1,184, 744 1926_____ _____ ______ 1, 251,926 Change.......... ..................... +67,182 Value of product: 1924_ ......... .................... 4, 313, 723 1926____________ ________ 4,520,981 Change.............................. +207,256 740 423 -317 1,746 1, 790 +44 822 433 -389 1,536 2,050 +514 1,444 1, 385 -5 9 $1, 248,168 559,039 -689,129 $3, 544, 857 2,988,936 -555, 921 $1,000,975 700,358 -300, 617 $2,471,128 2, 619,184 +148, 056 $3,438,434 2, 607,181 -831, 253 1,008,108 725, 032 -283,136 3,401, 816 3, 695, 571 +293, 755 1, 321,916 813,185 -506, 731 2, 609,151 3,404, 551 +795,400 4,003, 059 3,387,610 -615,449 676, 267 428, 882 -249, 385 2,183, 389 2, 232, 749 +49, 360 901, 772 446, 505 -455, 267 1,895,293 2,192,859 +297, 566 1,458, 394 1. 501, 394 -43,000 2,109,138 1, 505, 232 -603,906 7, 374,464 2,934,108 5, 899,874 7,484, 087 1, 639, 712 7,179, 967 +109,623 -1,294, 396 +1, 280,103 6,187,109 5,870,773 -316,336 In average number of workers, three show losses, while Lowell gained 54 workers, Chelsea 44, and Newburyport 514. In capital invested, four of the six show a marked loss between 1924 and 1926. Lowell shows a gain of $10,334 and Newburyport a gain of $148,056. In value of materials, three show a loss. Lowell shows a gain of $125,295, Chelsea a gain of $293,755, and Newburyport a gain of $795,400, against Haver hill’s gain of $2,034,407. 54 C O N D ITIO N S IN SH OE IN D U ST R Y IN’ H A V E R H IL L In amount of wages, Beverly, Everett, and Worcester show a loss. Lowell had a gain of $67,182, Chelsea a gain of $49,360, Newburyport a gain of $297,566, and Haverhill a gain of $414,346. In value of product, three show losses, while Lowell increased by $207,256. Chelsea had a gain of $109,623, Newburyport a gain of $1,280,103, against Haverhill’s gain of $3,461,303. Thus, in practically every respect, Haverhill has increased beyond each of the eight Massachusetts shoe centers of which we have records. The only other town that comes near it in extent of improvement is Newburyport, but while both have advanced, the improvement of Haverhill is very much greater. In value of materials, Haverhill has increased $2,034,407 to Newburyport’s $795,400, and in value of product Haverhill has increased $3,461,303 to Newburyport’s $1,280,103. W hat more, we would ask, do the Haverhill manufacturers want? Where is the decline in Haverhill’s shoe industry? Surely the facts speak for themselves. In practically every respect Haverhill is advancing rapidly and outdistancing all Massachusetts. W e submit that under these circumstances we are entirely justified in asking a general increase in wage rates. * * * * * * * The closing bogy.— For four years now the manufacturers of Haverhill have pursued a policy which has been very harmful to the shoe industry of the city. In their passionate desire to get wage cuts they have published to the world the sorrows and hardships of shoe manufacturers "here. This defeatist attitude has no doubt had its effect on shoe buyers and others and though the facts disprove it, the legend, once established, is very hard to destroy. W e believe, Mr. Chairman, if the manufacturers would change their tone and talk prosperity, based upon the figures we have presented and will present of Haverhill’s comeback in the last four years, more business would come in, confidence would be restored, and prosperity would continue and increase. If this were not a wage hearing only, we would ask you, Mr. Chairman, to instruct the Haverhill shoe manufacturers to repeat morning and evening each day for one year the following cheerful refrain: “ Every day in every way the shoe business in Haverhill is getting better and better.” It would be true and it would be healthful. The thing that the manufacturers have emphasized most, all through these years, is that factories have closed down and have left the city. This has bulked so large in their minds that they can see nothing else. And they have insisted that because of these closings the shoe business of the city is going to pot. W e propose to prove here and now, Mr. Chairman, beyond a shadow of a doubt that this is not so. Of course factories have closed down and factories have left the city. This was necessary after the war inflation but it was alwaj^s offset to some extent by new openings. It was not confined to Haverhill nor to the shoe industry, but was found everywhere. It is also true that factories are still closing down and leaving the city. It al ways will be so in a small scale industry like this, where competition is keen. But it is not competition from the outside that is causing some firms to fail and leave at the present time. It is competition within the city itself among firms which pay the same prices, and the failures are not due to rates but to the failure of some concerns to adapt themselves to new conditions. This is proven by the fact that other firms are expanding and new ones are coming in. W e are sorry to see old Haverhill firms fail and leave the city but our main interest is not in particular firms. It is in the industry as a whole. As far as the city of Haverhill is concerned, it makes no difference in a strictly business way who makes shoes here, so long as they are made. If John Doe fails and we lose an output of 1,000 shoes and Richard Roe prospers and we gain an output of 2,000 shoes, the city is much better off as a result of these two facts, than it was before. And this, or something very like it, is what has happened. Since 1925 the shoe industry in Haverhill has been expanding. That is the thing we want to emphasize, the thing we would like the board and the manu facturers to understand and remember. When we establish this fact the defeatist story of the manufacturers will be destroyed and we hope they will be in a better frame of mind to continue and increase this expansion in the best city in the United States for the making of women’s shoes. 55 HAVERHILL* SHOE BOARD ACTIVITIES In Table I X , columns 3 and 4, you will find the figures of the shoe board for capacity to manufacture all types of shoes in Haverhill and the surrounding district. For Haverhill the figures go back to 1922 and for the surrounding district to 1925. Haverhiirs capacity declined as a result of postwar deflation, over 33 per cent from June 1, 1922, to January 1, 1925. When deflation was completed on January 1, 1925, the industry was ready to start on an upward trend again. It is not yet back to the figure of 1922 and may not get back unless we have another war, but the recovery has been remarkable, as the figures show. During the first half of 1925 capacity increased 6.1 per cent. During the fall of 1925 there was a gain of over 20 per cent, making a total increase at the end of 1925 of 27.3 per cent. By July 1, 1926, it had reached a point more than 14 per cent over July 1, 1925, and during the fall of 1926 there was a further rise so that on January 1, 1927, capacity was 1.4 per cent above January 1, 1926. The two years together show an increased capacity, for all shoes, of 28 per cent. These figures, Mr. Chairman, prove that since 1924 the Haverhill shoe industry has improved remarkably and has added continuously to its capacity. In the same table will be found the figures for the surrounding district which the manufacturers have argued has been stealing the shoe business away from the city. The figures show the opposite of the manufacturers’ assertion. Haver hill is, in fact, stealing the shoe business away from the surrounding district. In the spring of 1925 the surrounding district gained less than 1 per cent while Haverhill gained 6.1 per cent. For every season since then it has lost, not only in comparison with Haverhill but in comparison with its own capacity in 1925. The shoe industry in the surrounding district is declining while that of Haverhill is expanding. During the fall of 1925 the surrounding district lost nearly 6 per cent, as compared with January, 1925. By July 1, 1926, it had lost more than 10 per cent. In the 2-year period when Haverhill was increasing its capacity by 28.7 per cent, the surrounding district lost 8.3 per cent of its capacity. In the same table, No. I X , columns 1 and 2, we show the capacity for Haver hill and the surrounding district for women’s M cK ays and turns only. The Haverhill capacity shows an increase of more than 38 per cent and the surrounding district an increase of only 6 per cent. T able I X .— Capacity (pairs of shoes per day) of shoe factories of Haverhill and of surrounding district, June 1, 1922, to January 1, 1927 Capacity (pairs of shoes per day) Women’s McKays and turns All types of shoes Date Haverhill 1922: June 1>_................. ......... 1923: Jan. 1................................ July 1........................ . 1924: Jan. 1__............. ........... July 1_________________ 1925: Jan. 1____................... . . July 1...... ......................... 1926: Jan. 1_______ _________ July 1___........ ................. 1927: Jan. 1........ ....................... W omen’s McKays and turns All types of shoes Sur Sur Surround Surround Haver round Haver round ing Haverhill ing hill ing dis hill ing dis district district trict trict 107,808 110,978 137,338 137, 558 145.9 150.2 118,128 87, 548 73, 888 79, 508 99, 718 94, 398 102, 608 Index numbers (Jan. 1, 1925=100) 85,4l0 87, 470 85, 330 82,820 90, 540 91,868 97,488 116,908 111, 348 118,268 149.7 149.7 118.5 201, 720 203,400 190,030 180,410 184,910 100.0 107.6 135.0 127.8 138.9 126.6 100.0 102.4 99.9 97.0 106.0 100.0 106.1 127.3 121.2 128.7 100.0 100.8 94.2 89.4 91.7 In Table X we give same figures, with separate items for women’s M cKays and for women’s turns. This shows a gain in Haverhill of 82 per cent for McKays and loss of 18.4 per cent for turns, while the surrounding district gained only 16.2 per cent capacity for M cK ays and lost 15.5 per cent for turns. 56 T able CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L X .— Capacity (pairs per day) of women's shoe factories in Haverhill and in surrounding district, June 1, 1922, to January 1, 1927 Capacity (pairs of shoes per day) Women’s McKays Women's turns Index numbers (Jan. 1, 1925=100) Women’s Mc Kays Women’s turns Date Haver hill 1922: June 1 . _______ ______ 1923: Jan. 1_________________ July 1_________________ 1924: Jan. 1 ___ _ _ _ _ _ _ _ _ July 1_________________ 1925: Jan. 1_________________ July 1_________________ 1926: Jan. 1_________________ July l._ __ ________ 1927: Jan. 1_________________ Sur round ing district 43, 850 43, 580 Sur round ing district 46, 388 58,060 60,120 59, 880 58, 720 67,440 31, 888 32, 588 33, 038 24. 078 26,028 Sur Sur Haver round Haver round ing hill ing hill district district 104.4 103.8 63,958 67, 393 41,180 42, 000 46, 920 06, 680 70, 320 76, 580 Haver hill 200.6 211.4 98.0 27, 350 27, 350 25, 450 24.100 23.100 100.0 111.7 158.8 187. 4 182.3 145.5 100.0 103. 5 103.1 101.1 116.2 100.0 102.2 103.6 75.5 81.6 166.0 300.0 93.1 88.1 84.5 Finally on this point, Mr. Chairman, the union has made a complete list of all the openings and closings in Haverhill for this year, with the output of each, where it was possible to get it. In Table X I you will find, bynam e, 12 firms which have closed down in Haver hill because of failure or removal in 1927. In addition to these 12, there is one firm for which we have no output figures, and one contract-making room which has moved to Derry, N. H . The total capacity of these 12 firms that Haverhill has lost this year was 10,780 pairs of shoes per day. In Table X I I you will find another list of 33 firms that have opened in Haverhill this year. Of these, the union has been able to get output figures for 28. The total output of these 28 firms is 10,574 pairs of shoes per day. The union feels that 600 pairs per day is a low estimate for the five firms whose figures they were not able to get. If this is accepted, the gain to Haverhill by new firms coming in is 11,174 pairs of shoes per day. In addition to these new openings you will find in Table X I I I a list of 14 Haverhill factories which have added to their capacity during the year. This added capacit}^ amounts to 6,671 pairs of shoes per day. Thus the total added to the Haverhill shoe industry in 1927 was 17,845 pairs of shoes per day, and the total lost because of removals and failures was 10,780, which makes a net gain of 7,065 pairs. Add this to the gains we have already shown for 1925 and 1926 and you will be convinced, we feel sure, that the Haverhill shoe industry is in a healthy and expanding condition and that the manufacturers’ tale of woe is simply the repetition of an old story thejr learned five, six, and seven years ago. W e hope and believe this improvement will continue. There is every reason to expect that it will. But we are asking for an increase not on the future, which no one knows, but on past and present prosperity which we have shown you. T able X L — Shoe factories 7noved or failed since January 1, 1927 Firm Alma Wright Shoe Co Becker _ __ ................................... Bloomfield _ _ _____ Brenner & Brody B. E. Cole.. _ __ ________________ Dole Waldron Emery Dana Tucker_________________ Garbelnick___________________________ Capacity per day (pairs) 200 1, COO 720 1, 000 1, 800 300 720 1, 000 Firm Capacity per day (pairs) F. B. Heath_________________________ Langlois ______________ ___________ E. L. Thomas ______ ___________ _____ Morin-Curtin __________ ______ __ __ Hartman (not reported)__ ___________ 2,500 180 1,000 360 Loss in capacity________________ 10,780 Holland Bros., contract-making room, who made shoes for Haverhill firms, moved to Derry, N . H . Shoes are now being made by other Haverhill contract firms. 57 H AVERHILL SHOE BOARD ACTIVITIES T able X I I .— New shoe factories since January 1, 1927 Firm Alma Shoe Co__________ ____ _______ Barr & Bloomfield____________________ John Buckley______ ______ _______ _ Brenner & Bloomfield__________ _____ Cote____________ _____ __________ ___ Franzblau Bros.. ___________________ Goudreault..................... . .......... .............. Fred Haley........ .................................... Haverbach._____ ___________________ Hillson_______ ___________ ____ _____ H. V______ ____________ ______ ______ Iona____ _______ __________ _____ ___ Katzman Rosengard Lazzaro Marino...... ................... .............. Mayfair__................................................. Novels Oak............................................................ . Radio. _______ __________ ____________ Capacity per day (pairs) 200 500 300 720 300 200 360 300 700 360 300 180 500 180 360 200 252 144 Capacity per day (pairs) Firm Robinson_____ ____ ___ Richard Roche................ E. W . Tilton____ .. Tourraine______________ L. Triberman. Vogue (not reported). Widder_________ __________________ Wise & Nesson ________ _______ Wright & Snider W. Verrette (not reported). Z. H _________ _______ Z. K _____ ____ ______ 360 258 180 1, 200 700 720 540 360 100 100 Total______________________ Not reported (estimated)____ ____ 10, 574 600 Increased capacity__ 11,174 Other now factories for which capacity could not be obtained were Mucciolo, Ross Kelly, and F. Smith. T able X I I I . — Shoe factories which have increased capacity per day since January 1, 1927 Firm Model Shoe Co. .................................... Modern Shoe Co____________ ________ Ayer Williams_____ _________________ Harrysons_____ ___________ _____ Milchen____________________ ________ Rickard No. 1 (not reported). D. & E R. V. Murphy___________ _______ ____ Increase (pairs) 1,440 540 540 720 875 360 360 Increase (pairs) Firm Kimel_________ Gerber_______ _ C lin to n ..____ J. M . Harian___ _ Bourque_______ _ ___ David_________________ __ _____ ____ Increase in capacity 216 360 540 180 180 360 6, 671 Net gain, Haverhill shoe capacity, since January 1, 1927 Pairs per day New factories__________________________________________________ Expansion_____________________________________________________ 11, 174 6, 671 Total increase_________________________________________ Factories closed_______________________________________________ 17, 845 10, 780 Net gain_______________________________________________ 7, 065 The position of Haverhill as a shoe center in relation to the whole United States is shown very clearly in Table X IV . This gives a complete list of the shoe factories, by States, in 1926 and 1927. The chief shoe manufacturing States, as you know, are Massachusetts, New York, Pennsylvania, and Missouri. From 1926 to 1927 Massachusetts, with Haverhill, lost 36 factories; New York lost 50 factories; Pennsylvania lost 1; and Missouri lost 9. In the same period the city of Haverhill made a net gain of about 20 factories. Can anything more be asked to prove to the shoe manufacturers of Haverhill that, instead of losing their share of the industry, they are gaining remarkably in comparison with the surrounding district, the State of Massachusetts, and the United States as a whole? 58 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL T a b l e X I V .— A complete list of shoe factories State or city Cormp.ntifMit, Georgia _ _ __ Illinois Indiana.. ____ _____ ____ ______ Iowa. . _ Kansas Kentucky. Louisiana Maine________ ___ ____ __ ____ Maryland____ ___ ___ ____ . Michigan___ __ M innesota.-____ __ ___ Missouri____________ __ _ Nebraska ____ ______ _ _ __ New Hampshire_________________ New Jersey. ______ ________ New York State, without Brook lyn ________ ______________ 1926 14 5 1927 66 4 4 3 11 3 49 17 14 14 122 3 67 23 15 5 5 69 6 5 3 10 3 56 16 15 14 113 3 62 15 214 191 State or city Brooklyn________________________ North Carolina-- ______ _______ Ohio________________________ Oregon.. ____________ _______ _ Pennsylvania___________________ Rhode Island___ ____________ Tennessee.. ________ ______ Texas__________ . __ _ - _ . Vermont-.. ___ __ _ Virginia____ __ __ _ . "Washington. ___ - _ __ _______ West Virginia_______ ___________ Wisconsin_________ ____________ Massachusetts, without Boston, Brockton, Lynn, Haverhill. _ __ Boston____ _____ _______________ Brockton_______________________ Lynn____________ ______________ Haverhill___ _________ __________ 1926 199 3 69 1 125 1 6 3 4 7 2 75 220 51 39 100 141 1927 172 3 67 1 124 1 7 4 3 7 5 2 73 206 44 41 99 The peace pact.— The second section of this brief deals with the request of the manufacturers for a reduction in wages of 25 to 35 per cent. In the last four years we have heard a great deal from the manufacturers about saving the shoe industry of Haverhill. What we want to insist upon now is that the shoe workers of Haverhill are also part of the industry and as much interested in saving it as are the manufacturers. W e assure you that a cut in wages at the present time will not save the shoe industry in Haverhill, but will drive the shoe workers out. W e have had experience with one cut. W e know exactly what it means. Another cut will mean that much more of the same thing. It will make it impossible for us to live here, especially as better time and higher rates can be obtained outside. It is stating a simple truth, Mr. Chairman, to say that shoe manufacturers in Haverhill can come and go and the shoe industry will continue. But when the shoe workers, who are admitted by all to be a special and highly competent class, begin to leave, the shoe industry, for which Haverhill has stood for a century, will go with them. W e have listened patiently and long to the sad story of the manufacturers. W e have not paraded our woes on every occasion, as they have. But there is a point below which we can not go and continue to live. W e know that you are interested in seeing the shoe industry remain and flourish in this city. So are the manufacturers. So are we. And we tell you frankly that another cut will drive us out and when we are gone, no matter who takes our place, the city of Haverhill will have lost its best asset, the skilled and competent shoe workers who have given this city its name and reputation. This is not just talk. You know and the manufac turers know that the shoe workers are already discontented and have been since 1924. And we tell you earnestly and sincerely that there is no surer w~ay of destroying the shoe industry in this city than to cut wages at the present time. There are two sides to this story of woe. For four years we have heard much of one side— the manufacturers’ side. To-day we are telling you something of the other side. The manufacturers talk about full-time earnings. W e do not get full-time earnings. W e do not live on what we would get if we worked full time. W e have to live on what we actually get. Take 25 per cent and 35 per cent from what we now get and we are done, gone busted, and with us the shoe industry, which is our industry, and the city which is our city. But the manufacturers will tell you that a cut will bring more work. The last chairman believed that. W"e took a cut. Did it bring more work? No, M r. Chairman, it did not. It brought less wTork, as we shall show you, and less pay. The same thing would happen again, but with this difference, that we are at rock bottom now and simply can not stand a further cut. W e know that. Our earnings prove it. If the manufacturers doubt it let them bring here annual earnings, deduct 25 per cent, and show us how we can live on that. W e have come, Mr. Chairman, to the last year of the peace pact and we want you to go back with us to its beginnings and see how it has worked out. When we have done this we shall ask you if it is wise of the manufacturers to come to you witn a request for a further cut, if it is in their own best interest, the best interest of the industry and of the city of Haverhill. W e feel sure that you will HAVERHILL SHOE BOARD ACTIVITIES 59 agree with us that a serious mistake has been made. But before examining the record I want to say a few things about arbitration such as this under which we are now working. I am here to-day, Mr. Chairman, as a representative of the shoe workers. But I am also and have been for some time an arbitrator in another industry. It is in this other industry that this sort of arbitration machinery originated and in which it has been carried on for more than 10 years. It is being carried on successfully to-day. Both sides believe in it. Both sides know they have benefited by it. It is an established thing and will not lightly be given up by either workers or manufacturers. I shall tell you in a very few words why this arbitration in this other industry has lived so long and has worked so successfully. It is because both sides have benefited by it in about equal degree. The manu facturers are satisfied because they have no more long and desperate strikes, and though they have plenty of stoppages for short periods, their rates are set over a period that allows them to figure their costs and sell at a price at which they know they can produce, and for other reasons. The workers are satisfied because their earnings are maintained, their piece rates fixed. In a word, it is a 50-50 proposition on the whole. Neither side gets everything or nearly everything. If either side did, the arbitration machinery would break down. And I can assure you, and anyone else who has had experience with arbitration can assure you, that it can not last when over a year or more the advantage leans all to one side or the other. Advantage with manufacturers.— W e assert here, Mr. Chairman, and will prove that for the four years in which this peace pact has been running, the advantage has been on the manufacturers’ side. W e do not blame anyone for this but it is a fact. Let us review: This first agreement between the manufacturers’ association and the union was signed for a year in 1921. Before that the union had dealt with individual firms. The agreement of 1921 provided that disputes should be arbitrated by a committee chosen for each dispute. This was unsatisfactory. The settlements were slow and contradictory. Strikes were frequent in spite of the agreement and in 1923 conditions were so bad that a citizens’ committee intervened, this peace pact was signed and a chairman chosen. In signing this pact the union gave up certain rights and privileges. It gave up the working card or permit system and allowed employers to transfer workers from one operation to another as they saw fit. It gave up the rule that if workers were kept waiting for work beyond a fixed time the whole department would stop for the day. It gave up the 5-day week and allowed employers to open on Saturday for 9 months in the year or for 12 under certain conditions. This has been greatly abused by some manufacturers. For some reason we can not understand there are manufacturers who w~ill work Saturday, if on no other day of the week. The union further gave up the right to strike. It gave up the right to settle rates by bargaining with individual firms and put the final settlement into the hands of this court. But note, Mr. Chairman, that when it agreed to allow this court to settle rates on facts it was not given access to the facts. The manufacturers come here and tell you and us that they are not making money but neither you nor we have ever seen any figures to prove it, or to prove that high labor costs are the cause of it. When rates are set on facts, Mr. Chairman, the facts should be available. In this case they are not. W e have given up our bargaining weapon, the threat of a strike, for the wiser and better method of argument based on facts. But we are not given the facts by the manufacturers, who are the only people who have them. This gives the manufacturers a great advantage over us. These we gave up, Mr. Chairman, and in return we received two things: The division of work and the review of discharges. W e ask you to balance the five things we gave up against the two things we got in return and see if the balance is not greatly with the manufacturers. Before going on with the record under the peace pact I want to draw your attention to one of the things we gave up, the right to strike. In the other industry of which I have spoken the right to strike is also given up. But strikes are not. In one market in the course of a year there were over 100 stoppages. Yet the employers felt that the machinery was satisfactory. How many strikes have you had in Haverhill since the agreement was signed— 100 a year? I think not. One stoppage of any importance, if I am correctly informed. Now, Mr. Chairman, the main advantage employers get from peace pacts of this sort is the avoidance of strikes. In other industries if they could get that and that alone, they would be satisfied. Strikes have ruined more employers and more industrial centers than any other thing. In the industry of which I speak they do not get 60 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL rid of small strikes or stoppages. The people are sent back to work but there remain considerable losses. And though the manufacturers are not pleased with this, they are satisfied enough to continue the arrangement. I feel, Mr. Chair man, that the Haverhill shoe manufacturers have had their m oney’s worth out of this pact many times over just from this one thing, the stoppage of strikes. They know that themselves. And yet they come here year after year for reduc tion of wages, knowing that we have signed away our right to strike and that we keep our word. The peace pact was made in December, 1923, and on or about June 1 the shoe workers of Haverhill through this board received a general cut of about 25 per cent. This was the sixth thing they' lost under this agreement. This cut was made, according to the manufacturers, to bring business back to Haverhill. But the experiment was tried. If business had come back perhaps our earnings would have been maintained. But instead of coming back, more business was lost. W e quote from our brief of 1925. Let us look back a moment to the spring of 1924. W hat was the situation then? Exactly what it is this very day. Manufacturers were voicing the same complaint and were suggesting the same remedy. They came before the shoe board and asked for a reduction, and they told the workers and the board and the citizens of Haverhill in general that if they got substantial relief they would fill their factories, give steady employment to their employees and bring prosperity once more to their native city. Unfortunately no stenographic minutes of last year’s proceedings were made, otherwise, we are sure, we could now quote to the board the same arguments, the same promises, and the same suggestions which it has listened to during the course of the present hearings. But the truth of this assertion is of such general knowledge throughout the length and breadth of the industry that there can be no denial. A few quotations from the press of Haver hill reflect the prevailing sentiment of that time. News item from the “ Haverhill Evening G azette” 1: “ Several manufacturers, confident that the wage concessions will open new business to them, are already in New York and other big city markets calling upon their buyers.” Editorial comment from the same source 2: “ The readjustment places our manufacturers in a favorable position to com pete for a new season’s business.” Headline from the same source 3: “ Wage cut comes in time to help business boom.” “ Makes it possible for Haverhill men to book summer business and meet country-wide price slashing.” But most significant and illuminating of all is the comment of the chairman of the board, who ii\ an official statement said as follows 4: “ The manufacturers are being awarded a large reduction in labor costs so that they can sell more shoes. It is their duty to go out immediately and fill their factories. The manufacturers have given assurance that they can do it with 25 per cent reduction. Careful study convinces the chairman that they can do it with 20 per cent reduction. They will have forfeited a serious measure of confidence if they fail.” And the chairman also said in the same statem ent5: “ This wage adjustment can justify itself only by bringing more orders for shoes into Haverhill factories.” These are solemn words, M r. Chairman, and they can have only one interpre tation. They imply a covenant to the shoe workers of Haverhill that if the wage reduction which you ordered in M ay, 1924, did not bring business to the manu facturers some other remedy would have to be found, and that there would be no further reduction of wages. W e are going to show you that the reduction did not bring “ more orders for shoes in Haverhill factories” and that it, therefore, most decidedly did not “ justify itself.” W e are certain that you will not again allow yourself to be deluded by the vain hope that a wage reduction will bring prosperity. W e are certain that you will recognize the fact that the manufac turers “ have forfeited a serious measure of confidence,” and that j^ou will act accordingly. W e are certain, Mr. Chairman, that you will not take another cent from the pockets of the workers. W e marvel that the association, in the face of your 1 May 9, 1924, p. 1. 2 May 9, 1924, p. 4. 3 May 27, 1924, p. 1. 4 Statement of Haverhill Shoe Board, May 8, 1924, p. 6 in re Case No. 48. 8 Idem, p. 3. 61 HAVERHILL SHOE BOARD ACTIVITIES dictum of a year ago, dares to appear before you once more, and having once failed to make good, to offer the same time-worn arguments and the same hollow promises. W e do not accuse the manufacturers of having willfully “ lain down on the jo b .” No doubt they tried their best to get orders. No doubt they would have been delighted to have got them. But they could not. Several of their repre sentatives in the course of the hearings have told you that without the reduction they would have been worse off to-day than they are. That is entirely a suppo sition. It might have proved a fact or it might not have. W e shall never know. But we do know that the reduction did not bring them the increase in business. That is a fact, Mr. Chairman, and it is substantiated by figures that we are going to introduce. The union asked the manufacturers to submit certain data, including, among other things, the net sales of its members and the number of pairs of shoes shipped in each of four periods— June 1, 1923, to December 31, 1924; and January 1, 1925, to May 31, 1925. Sixteen concerns supplied the information as to the value of their sales, and 15 of these 16 also stated the number of pairs sold. In other words, our conclusions are based on data covering about 50 per cent of the members of the association, which is a thoroughly adequate sample. The identity of the firms which responded to the request of the union is not known to us, except that they include six M cK ay, eight turn, and two welt and turn factories. Below we present the figures transcribed from the original question naires, which we will gladly submit upon request. Sales of association members, June 1, 1923, to M a y 81, 1925 June 1 to Dec. 31,1923 Jan. 1 to May 31,1924 June 1 to Dec. 31,1924 Jan. 1 to May 31,1925 Questionnaire No. Amount 13__..................... 10_____ _______ 7______ ____ _ 6______________ 5______________ 9______________ 4______________ 2______________ 15_____________ 12____ ________ 1______________ 3 ._____ _______ 8______________ 11. ............. ........ 14_____________ 16____ ____ _ Total $98, 582 198, 294 89, 713 75,095 213, 830 145,404 312, 589 302, 502 132, 667 233, 522 386, 246 72,191 486, 348 326, 847 279, 564 71, 349 3,424, 743 Pairs Amount $133,021 184, 583 161, 455 34, 681 224, 799 172, 935 161,048 341, 689 55, 891 171, 209 331,443 48,080 572,523 362, 678 378,472 84,870 56, 626 32, 347 104, 806 14,972 46, 683 85,904 36,108 282,900 72, 569 94,860 17,100 3,419,377 1,030,399 48,163 53, 526 32, 724 14, 355 38,~952_ 59, 599 92, 296 36, 970 64,166 102, 228 51,048 240, 660 86, 785 79, 680 17, 623 1,018, 775 Pairs 86,389 46, 825 45, 360 6, 890 Amount $139,196 160,085 318,154 ! 13, 878 297, 035 196, 720 174, 280 380,122 160, 202 146,179 194,042 55, 383 499, 614 242, 281 356, 607 72,133 3, 205,911 Pairs 62, 111 47,650 43, 276 3,453 75, 554 32, 250 120, 529 46, 848 46,124 55, 708 42, 264 250, 700 70, 666 93,480 17,859 1,008,472 Amount Pairs $119, 320 57, 852 240, 524 65,029 111, 041 38, 968 2,451 9, 321 235,104 150, 804 ” "60,'369 26, 762 138, 584 400, 564 126, 204 142, 529 45, 622 253, 323 74,970 151, 227 39,367 52. 232 43,668 364, 412 170,420 211, 774 52, 590 285, 806 82,440 54, 553 12, 865 2,921,118 899, 577 Let us analyze the above table. Very little need be said, because the figures speak for themselves. The wage reduction went into effect about June 1, 1924. The figures, therefore, cover one year at the old rate of wages and one at the reduced rate. Each year is divided into two periods. The total sales of the 16 firms from June 1, 1923, to December 31, 1923, amounted to $3,424,743. For the corresponding period in 1924, after the wage reduction, sales of these same firms amounted to $3,205,911, a falling off of 6.4 per cent. Expressed in numbers of pairs, there was a drop of only 1 per cent— from 1,018,775 to 1,008,472.6 This indicates that the shrinkage in value of sales during this period is accounted for to the extent of about 85 per cent by a decline in shoe prices or by a run of cheaper shoes, and to the extent of about 15 per cent by an actual falling off in physical production. Total sales from January 1, 1924, to M ay 31, 1924— prior to the wage reduc tion— amounted to $3,419,377, while for the corresponding months in 1925— after the cut— they amounted to only $2,921,118, a shrinkage of 14.6 per cent. The decline in the number of pairs sold was from 1,030,399 to 899,577, which is J*Only 15 firms reported sales in pairs, .24011°— 29— 62 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL equal to 12.7 per cent. W e may conclude that in this period the drop in sales is explained to the extent of only 15 per cent by any decline in shoe prices or by a cheaper run of shoes, and to the extent of 85 per cent by an actual falling off in volume of shoes run through the factories. Considering the entire 12 months prior to the wage reduction, and the entire 12 months subsequent thereto, we find that sales fell off 10.5 per cent, or from $6,844,120 to $6,127,029, while the number of pairs shipped fell off 6.9 per cent, or from 2,049,174 pairs between June 1, 1923, and May 31, 1924, to 1,908,049 between June 1, 1924, and May 31, 1925. ' This total falling off in sales of 10.5 per cent for the year after the wage cut as compared with the year before, is accounted for to the extent of approximately 35 per cent by lower shoe prices or by a cheaper run of shoes, and to the extent of approximately 65 per cent by an actual falling off in the physical volume of shoes produced. There can be no denying the fact that in spite of lower prices Haverhill manu facturers on the whole got less business during the year following the reduction— which had been ordered by the board for the sole purpose of stimulating business— than they had had during the preceding year when higher piece rates and weekly wages prevailed. Obviously, earnings of Haverhill shoe workers must have been greatly reduced, for they had a smaller number of pairs to work on and they were paid lower rates for what thej^ did. Wag e-reduction facts.— How can anyone escape the conclusion that last year’s wage reduction failed utterly to bring about the result the board expected, as shown in its decision already quoted? The board hoped to bring more orders to the manufacturers and more work to their employees. W hat happened was just the reverse— less orders and less work. In the light of these facts alone, quite aside from the many other considerations, the request for a further reduction on the part of the association is entirely unwarranted. The board’s pronounce ment of last M ay actually rules it out of order, and the board, in the capacity of judge, ought to dismiss the plea on this ground, without even assuming ihe function of jury and weighing the other evidence. But, Mr. Chairman, we have further evidence that the 1924 cut did not help things. In the early part of 1925 the manufacturers’ association, seeing their business still declining, took another tack. A wage cut had been tried and had failed. What else could it be? Not the manufacturers. That was too painful a thought. Not the general condition of the industry. N o; it must be the same old trouble, the shoe workers. And what was the trouble in 1925 with the shoe workers? Conditions, that was it. The manufacturers had given the wTorkers, in exchange for six important concessions, two conditions that can be found in any peace pact or trade agreement you wish to examine. They had given the division of work and the right of review in cases of discharge. So the manufac turer asked that these two things, the only things the workers got from the agree ment, be withdrawn. They wanted the abolition of the division of work clause and the freedom of discharge without review for bad work. I know of no industry where arbitration has been set up in which these two provisions are not accepted without question. I do not believe there is such an industry and I do not see how an arbitration system can work without them, for they are the only things the workers get out of peace pacts and arbitration agreements. To take them away would mean simply that the workers had given up every single right they ever had and the manufacturers had gained exactly 100 per cent by the agreement. These proposals wore defeated by referendum so that they can not be counted as further loss. But the mere suggestion that these two rights be withdrawn shows, first, that the wage cut had not done what the manufacturers promised and, second, that the manufacturers’ association was willing and anxious to get every thing out of the pact and leave nothing for the workers. In the fall of 1925 conditions were little better and the manufacturers came again asking for another cut of 25 per cent. The same old arguments were used, but the chairman was evidently convinced that lower rates would not bring business and no general cut was made. Then came 1926, the best year the shoe industry had had since 1922. Business was good, flourishing. In August nearly 40,000 cases of shoes were shipped and in September nearly 49,000. It was a good year. There was no competition. Even the manufacturers said that competition did not worry them. W e thought then that it was the time to get back some part of our losses. As we had been cut 25 per cent in the bad year of 1924 surely we could get back at least 12 per cent in the good year of 1926. W e came to this board and showed what a good year 1926 had been. W e asked that we get at least something out of this peace pact. It was time. For all we had given up since 1923 we had H A V E R H IL L SH O E B O A R D A C T IV IT IE S 63 received not one single thing in return. The mutual agreement was working practically 100 per cent for the manufacturers and practically nothing for us. Three years of it, and nothing— surely it was time that something came our way. W e went to the board and what did we get? Mr. Chairman, we got nothing. There were adjustments, some up and some down, but no one, not even the chair man who made the adjustments, can show that we got anything in 1926, the best year in the industry since 1922. Now this is 1927, Mr. Chairman. In June business had fallen off as it fell off all over the country last summer. But by August and September the shoe busi ness in Haverhill was back not only up to 1926 but beyond it. In August and September, 1926, 88,425 cases of shoes were shipped out of Haverhill. In August and September, 1927, 88,439 cases were shipped, or just 14 cases more for those two months this year than for last. And in the face of that the manufac turers’ association is back here in November asking again to reduce our rates by 25 to 35 per cent. Though we gave up six important rights, though we accepted a large general reduction, though we were given nothing when we asked for a crumb of the prosperity of 1926, and though we find business to-day has recovered from its summer slump and is better than last year for the two peak months of the fall, though we have given all this and practically nothing has been given us in return, we are to-day asked, Mr. Chairman, to accept a further cut. W e ask you, we ask the manufacturers’ association, we ask the citizens of Haverhill, is this fair, is it reasonable, is it 50 -5 0 or anything like it? And if it is not, if, as we assert and have shown, we have got practically nothing and have given practically everything under this agreement, do you or does anyone else believe that it can last? W e are not making threats, Mr. Chairman. W e are stating the facts. No agreement can last that is all or nearly all one way and nothing or nearly nothing the other. This so far has been that sort of an agreement. And should this agreement break down, we shall be back where we were in 1923, back to chaos and trouble, and the manufacturers, the workers, the shoe industry, and the city of Haverhill will suffer. The manufacturers’ association has had four years of a peace pact that has been all or nearly all their way. They have for gotten, perhaps, the conditions that existed before it. Let us remind them, before their headstrong course destroys the thing that saved them. This pact expires next year. It is supposed to be a pact for mutual benefit. Our share is yet to come and we ask it now at your hands in an increase of wages. In conclusion, Mr. Chairman, we wish to draw your attention to a statement we made on page 28 of this brief [p. 54 of this bulletin]. It is a very important statement and one that when thoroughly understood will change entirely the accepted ideas as to the real trouble with the Haverhill shoe industry. W e said that the real trouble in Haverhill is not outside competition but competition among the Haverhill firms themselves. This is true. When a Haverhill firm fails it is because some other Haverhill firm has taken business away from it. It is commonly said that there are no prices on Haverhill shoes, that buyers shop around, hunt bargains and get them, and that a cut throat competition is carried on within the city itself that sooner or later ruins some firms and hurts all. This is the real secret of the trouble in the shoe industry of this city. Outside competition as we have shown means nothing. Inside competition means every thing. The manufacturers are barking up the wrong tree and we suspect they know it. When they stop cutting each others’ throats there will be no more talk of bad business in Haverhill. But so long as they continue under selling each other at any cost they will have failures and removals. In this wage arbitration this is a very important fact, perhaps the most im portant of them all, because wage rates under this agreement have not the slightest effect on this inside competition. The same rates are paid under this agreement throughout the city. When you set rates after this hearing, Mr. Chairman, they will apply equally to all. Whether you raise them or lower them or leave them as they are the competitive condition in this city will remain as it is to-day. All firms pay the same rates whatever they are and they will continue to compete among themselves for business by a dangerous lowering of prices. Some firms will continue to fail and others to be damaged whatever you may or may not do. The real trouble in the Haverhill shoe industry is quite beyond your reach or ours. The cure lies with the manufacturers. When they stop cutting each others' throats and present a united front on shoe prices their troubles will be over and not before, 64 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL Rebuttal of union brief The chairman has no doubt noted that the union has taken figures from the reports of the Massachusetts Board of Industries and linked them up with figures of the Haverhill Chamber of Commerce to show that Haverhill is in a flourish ing condition, that Haverhill manufacturers are prosperous and happy. It is unfortunate that these conditions do not prevail. W e wonder, after carefully perusing Mr. Ware’s maze of figures, if former employees of F. B. Heath, who failed; former employees of B. E. Cole Co., who liquidated; former employees of Kesslen Shoe Co., who moved; former employees of Moss-Seamans, now in Newburyport; former employees of Triangle Shoe Co., who liquidated; former employees of the David Shoe Co., who failed; and present employees of the Ornsteen Shoe Co., whose mail-order shoes are to be made in Marlboro, are quite as sure as Mr. Ware that business in Haverhill is increasing by leaps and bounds. Will this asinine bit of information of Mr. Ware’s convince the many Haverhill union members whose homes and families are here but who are compelled to go to Lawrence, Lowell, Kennebunk, Farmington, Dover, Newburyport, Amesbury, and Wakefield to work at rates much under Haverhill prices, that business is good and that jobs are plentiful in Haverhill? When the city’s pay rolls are decreased by 30 removals, failures, and liquida tions, when the shoe production of Haverhill drops 13^£ per cent, and when there are so many empty tenements, can figures prove to the merchants, professional men, chamber of commerce, shoe workers, and to you, Mr. Chairman, that business in Haverhill is better than a year ago? While official figures are not available to us as to production or productive capacity, we ask you to carefully examine Table X of the union brief and you will wonder why the union officials did not tell Mr. Ware that such firms as Moss-Seamans, Beaucage & Morris, Triangle Shoe Co., Kesslen Shoe Co., David Shoe Co., Anna-Belle Shoe Co., J. Berkovitch, L. Callaghan & Co., Colbuck Shoe Co., Jaffarian Bros., A1 Knox Shoe Co., Lynway Shoe Co., Paris Shoe Co., Zubick Shoe Co., Thurston & Kelso, Silsby Shoe Co., and Becker Bros., either liquidated, removed or failed, so that he might include them in his list. If he had been given the correct data, Tables X I and X I I would have been more authentic. W e are offering Tables I, II, and III correcting Tables X , X I , and X I I . The union compilation shows a net gain in productive capacity of 7,065 pairs, which they believe should convince the chairman that the Haverhill shoe busi ness is in a “ healthy and expanding condition.” If the tables had been conscientiously compiled, the result would have shown a net loss of 11,245 pairs, or a difference of 18,310 pairs. W e would ask that the chairman draw his own conclusions of the union’ s statement from the above. Statistical figures.— W e refer you to Tables V I and V II, and also to page 25 of the union brief [p. 54 of this bulletin]. Figures do not lie, but the deduction made by the union from their tables are surely misleading. For instance, they say that in value of product Newburyport gained $1,280,103, while Haverhill gained $3,461,303. Mr. Ware tells you that Haverhill’s gain is 12 per cent, but he does not tell you that Newburyport’s gain is 21 per cent. The union tables also show that in making this 12 per cent increase Haverhill increased the average number of workers by 307, while Newburyport to make the 21 per cent increase, increased the average number of workers by 514. If Mr. W are’s figures prove anything, something is rotten in Denmark. W e would ask you to consider all the union figures on a percentage basis. Earnings.— The union used for earning comparison Lynn, Brockton, Salem, and Massachusetts State statistics. They contend that the reason for this is that Haverhill shoe workers “ have to pay Massachusetts prices for food, clothing, and rent.” If the shoe buyers were restricted to buying Massachusetts’ output then the union’s contention would have been well taken, but unfortunately, they are privileged to buy shoes in Maine, New Hampshire, or anywhere else in the country. The facts are that Haverhill does not compete with Brockton at all, very little with Lynn, and as the output of w om ens shoes in Salem is but 4,300 pairs 65 H AVERHILL SHOE BOARD ACTIVITIES per day, very little competition is met there.7 Haverhill’s keenest competition is from Maine, New Hampshire, and other cities and towns in Massachusetts. It would be interesting to know, although the data is not available, the aver age weekly earnings of shoe workers in Auburn, Skowhegan, Springvale, Biddeford, Kennebunk, Augusta, Hallowell, Gardner, Belfast, Richmond, Calais, and Norway, M e .; Manchester, Derry, Dover, Farmington, Claremont, Epping, Raymond, North wood, Exeter, Hampstead, and Keene, N. H .; Lowell, Marlboro, Salisbury, Lawrence, Newburyport, Wakefield, North Reading, Chelsea, Marble head, North Adams, and South Braintree, Mass. The chairman should realize when considering the average earnings of Haver hill, that the enforcement of the equal division of work rule tends to reduce the earnings of all employees. This is a handicap which no other shoe town has to contend with, and if crews could be reduced to actual requirements of the factories, earnings would be increased greatly, and the possible earnings under the present Haverhill wage rates would be much in excess of present weekly pay rolls. Mr. Ware has used 1926 figures in Tables V I and V II. He has used in his brief many quotations taken from Mr. Bernheim’s presentation of 1926. W e admit now and admitted last year that the 1926 production increased over 1924 and 1925 due to the wage reduction of 1924. The association told this board last year that after the 1924 reduction it took the manufacturers a long time to turn about and regain customers who were lost on account of the prohibitive wage bills of 1922 and 1923. Mr. Bernheim, in his rebuttal of 1926, admitted that shoe workers had received more income, and that more shoes had been made in Haverhill in 1926 than in 1924 and 1925 and inferred that the 1924 reduction had justified itself. This is another year; 1927 has showm so far a falling off of 13J4 per cent, caused in part by removals, failures, and liquidations, and we urge this board to consider carefully the city and help put the shoe industry on a basis that will prevent more failures and contemplated removals. The union has seen fit to offer a veiled threat in regard to the continuance of the peace pact. This should in no way be considered nor should it influence this board in its findings. T able I .— Shoe factories moved, failed, or liquidated since January 1, 1927 [American Shoemaking Directory used for authority] Firm Capacity per day Firm Pairs Alma Shoe C o .......................... .............. Anna-Belle Shoe Co__________________ Beau cage & Morris__________________ Becker Bros__________________________ J. Berkovitch____ ____ ___ ____ _____ Bloomfield Shoe Co__________________ Brenner & Brody. _________ _________ L. Callaghan & Co_______ ___________ Colbuck Shoe Co____________________ B. E. Cole Co__________ _______ _____ Dole & Waldron Emery-Dana & Tucker______________ Garbelnick Shoe Co................................ F. B. Heath___________________ ______ Jaffarian Bros Kesslen Shoe Co............. ......................... Lynway Shoe Co____________________ 200 360 250 « 1,000 360 720 1,000 900 540 1, 800 720 540 1,000 2,500 450 1, 500 700 Moss-Seamans Co___ ________________ Langlois_______ ______ ____ _______ Nox-All Shoe Co_____________________ Paris Shoe Co______ ________________ Silsby Shoe Co_________ _____________ E. L. Thomas_______________ _____ Thurston & Kelso_________________ Triangle Shoe Co___ _________ ______ Zubick Shoe Co _____ _________ __ David Shoe Co_______________________ Capacity per day Pairs 1,500 i 180 1,800 540 700 1,000 500 1,000 900 1,600 24,260 Hartman Shoe Co. (estimated reduc tion)_____________________ ______ _ Loss in capacity_______ _______ 1,800 26,060 ° No reference in American Shoemaking Directory, so we have used figures in Table X I (p. 56), union brief. 7 American Shoemaking Directory. 66 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL T able I I . — New factories since January 1, 1927 [Union brief used as authority] Firm Capacity per day Capacity per day Firm Pairs Pairs 200 Vogue Shoe Co. (not reported). Widder______________________________ 500 Wise & Nesson _ _ ______ _____ 300 Wright & Snider ___ ____________ 720 300 W . Verrette (not reported). 200 Z. H _________________________________ 360 I Z. K _________________________________ 300 Total__________________________ 700 Not reported (estimated). . . . . . 360 ___ Hillson _ H V 300 Increase in capacity____________ 180 ___ _ _ _ Iona___ ________ 500 Katzman- Rosengard _ _ ___ Pairs 180 Lazzaro & M arin o____ 200 Mayfair __ _ ___ __ ' ___ 360 Franzblau out of business_____ Touraine succeeded Becker 200 Novels__________ _ _ _ _ _ _____ 252 Shoe... __ . . . . __ ____ _ 1,200 _ _ _ ____ Oak__________ _ 144 Widder moved to Skowhegan, Radio. _______ ____ _ _ M e___________ ___________ 720 _______ ______ 360 Robinson __ __ Wise & Nesson succeeded I. Richard Roche.__ _____ 258 E W Tilton Wise 540 180 1,200 Touraine Shoe C o . ___ _____ _ _. L. Tribeman_____ __ ____ _ _ 700 Alma Shoe C o _________ _____ ______ Barr & Bloomfield John B uckley_____________ _____ Brenner & Bloomfield _ ___ _ ... Cote____________ Franzblau Bros. Shoe Co ___ Goudreault Fred Haley Haverbach. T able 720 540 360 100 100 10, 574 600 11,174 2, 660 8,514 I I I .— Shoe factories which have increased capacity per day since January 1, 1927 Firm Model Shoe Co______ _____ _________ Modern Shoe Co________ ______ __ Ayer & Williams ___ . . . ____ ____ _ Harrysons _ __ _______ _________ Milchen Rickard No. 1 (not reported). D. E_ . ________________________ R V Murphy Kimel Shoe Co___ _ ______ _____ Gerber Shoe Co _________________ _ Increase Pairs 1,440 540 540 720 875 360 360 216 360 Firm Increase Pairs Clinton._ _ _____________________ J. M . Harian _ ___ Bourque._________________________ David____ ________________________ 540 180 180 360 Increase in capacity____________ David fa ile d .._____ __ ___________ 6,671 360 6, 311 Net loss, Haverhill shoe capacity, since January 1, 1927 Pairs per day 8 ,5 1 4 6 ,3 11 New factories. Expansions__ Factories closed_______________________________________________ 14, 825 26, 060 Net loss________________________________________________ 11 ,245 Union rebuttal After careful search the union is able to find only two arguments in the manu facturers’ brief that need any rebuttal. The manufacturers give a list of 30 firms as having failed or removed from Haverhill. They say nothing about their output and nothing about new firms coming in. The list therefore proves nothing about the condition of the industry in this city. Of the firms named, J. Berkovich has started up again. Colbuck Shoe Co. was formerly Becker and as Becker is listed it means that two names have removed but only one firm. This firm has again changed its name to Touraine so that instead of two removals we have one firm under three names. A1 Knox Shoe Co. is still in Haverhill H A V E R H IL L SHOE B O A R D A C T IV IT IE S 67 Kessien Shoe Co. has come back to the city and now has more floor space. Lynway Shoe Co. failed in 1926 and not in 1927. Paris Shoe Co. is still here. Thurston & Kelso is in the 1927 shoe directory. Moses Brown was a contract-making room. Louis Shapiro was Shapiro & Wise. Shapiro got out and Nesson took his place. The firm is still here as Wise & Nesson. The Alma Shoe Co. changed to the Alma Wright and is now Wright & Snider. The other argument in the manufacturers’ brief is based on a comparison of “ average hourly earnings” for the United States, New Hampshire, Maine, Massachusetts, compared with “ the possible earnings of a cutter, a skiver, etc.” in Haverhill for five consecutive weeks. This comparison, Mr. Chairman, is so ridiculous that it is a positive insult to us and to you for the manufacturers to offer it. The “ average hourly earnings” are not actual earnings but are computed by the United States Bureau of Labor Statistics and can not be compared with actual earnings under any circumstances. When they are further computed into weekly earnings the comparison becomes ridiculous. Beside this the manufacturers have taken not the shoe making States like New York, Pennsylvania, and Missouri, but New Hampshire and Maine, which are noted for their scenery. The manufacturers make no claim that they com pete with these States. They might just as well have used Mexico or Timbuctoo. Finally, these computed earnings are compared with “ the possible earnings of a cutter, a skiver, etc., for five consecutive weeks” in Haverhill. W hat do the manufacturers mean? Do they mean that “ a cutter” has made these figures or that he could make them? The brief does not say. If they mean that these earnings have been made will they tell us: 1. Who was this cutter, this skiver, etc.? Was he a specially fast man who was fed work for the very purpose of making high earnings? If not, who was he and how did he get that way? W e would like to know\ You are not asked, Mr. Chairman, to set rates for “ a cutter, a skiver, a lining maker, e tc .” You are asked to set rates for cutters, skivers, lining makers. If their rates and earnings were high the manufacturers would have brought them. Instead they pick out some individual to prove what one man can do when the manufacturers want to see him do it. 2. W as overtime worked and was it paid at time and one-half or double time? The brief does not say. 3. What are these weeks? Are they the same weeks for all operations or are they picked weeks taken at one time for one operation and at another for another operation? 4. Are they from the same factories? The whole comparison is wrong, Mr. Chairman. The figures of “ hourly earnings” computed into weekly earnings can not be compared with the actual earnings of “ a cutter, etc.,” in five peak weeks. If the manufacturers would compute Haverhill average hourly earnings as the United States Bureau of Labor Statistics does the average hourly earnings of the country as a whole they would be entitled to their comparison though it would be a bad one. But when they take one method for the United States figures and another method for Haverhill figures, they have no case at all. Surrebuttal of union brief In final surrebuttal of the union brief, we want to call your attention to the statement on page 51 (p. 63 of this bulletin), where the union says, What did we get in 1926? Nothing. We refer now to about 14 shoes submitted to the board by the union, comparing figures of Haverhill and Lynn. Based on Mrs. Rooney’s own figures, the union must have benefited, as wdien she figured the uppers in 1926 and 1927 she found that on stitching alone the last decision gave an increase of from 1.7 to 28 per cent. (Table X , p. 68.) From your records Mr. Chairman, you can find that edgemakers and M cKay side lasters and niggerhead operators were granted a substantial increase on bases and extras. From these figures we ask you to draw your own conclusions as to their statement. Average weekly earnings of Haverhill.— In June of 1924 the board handed down a decision reducing piece prices approximately 17 per cent, 68 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL This reduction allowed the manufacturers to go out and sell shoes and not withstanding this reduction the average earnings increased from the last six months of 1924 about 2 per cent. The year 1925 showed an increase in earnings over the 1924 period before the reduction of 1.4 per cent and the year 1926 showed a 6.6 per cent increase over the 1924 period before the reduction. In December, 1926, the board granted an increase in wages which had the effect of reducing average earnings, the first nine months of 1927 showing a decrease over the same nine months of 1926 of 2.5 per cent. In contrast to the above, Massachusetts’ average earnings increased over this period 1.6 per cent. Haverhill's 1927 period now shows 6.7 per cent more than Massachusetts as a whole. Since the increase granted by the board in December, 1926, Haverhill’s output has shown a decrease in average daily production of 19 per cent over the corre sponding period of 1926 (shoe board figures), while the country as a whole shows an increased monthly output in 1927 of 3.8 per cent over the same period of 1926. In a comparison of the same two periods, the surrounding district shows a slight gain. In conclusion, the union has stated that the pay rolls were selected by the association, that the manufacturers had been forewarned and had “ set the stage” for big earnings. W e offer the affidavit of Mr. Louis Kremer, C. P. A ., which speaks for itself. Regarding the return of the Kesslen Shoe Co. to Haverhill, as claimed in union rebuttal, we present affidavit of Mr. Harry Kesslen, which also is self-explanatory* T able X. Shoe »**■ Lynn No. 2.................. Lynn No. 3...... .......... . Lynn No. 4__________ E. & W . No. 4_______ E. & W . No. 10_____ E. & W . No. 5_______ E. & W ______________ Haverhill fitting figures for shoes, submitted to shoe board 1926 1927 3. 372 1.49 5. 97 2. 69 2.05 1.002 1.43 3. 523 1.82 6.092 2. 78 2.11 1.28 1.539 Per cent increase 4.5 22.1 2.0 3.3 2.9 28.0 7.6 Shoe E. & W . No. 2 ......... . No. 8 Mark CH ........... E. & W . No. 11______ Lynn No. 14................ E. & W . No. 6 ........... E. & W . No. 1___........ 1926 1.62 2. 4L 3.23 2. 80 1.43 3.59 1927 Per cent increase 1.648 2. 59 3. 355 2. 884 1. 539 3. 72 1.7 4.4 3.8 3.0 7.6 3.6 Conditions in May, 1927, by Chairman of Shoe Board R. EDWIN NEW DICK, after more than three years’ service and experience as chairman and neutral member of the Haverhill Shoe Board, in close touch with conditions in the shoe industry in the city, and having an unusual* opportunity to study the industry, issued a statement expressing his opinion as to conditions. The statement was addressed to the Shoe Workers’ Protective Union and the Haverhill Shoe Manufacturers’ Associa tion, published in the Haverhill Gazette, and is presented herein. The union officials, claiming that the statement disqualified Mr. Newdick from further service as the neutral member of the board, appealed to the superior court of the Commonwealth of Massachusetts for his removal from the board. The appeal was granted. See “ Findings, Rulings, and Order for Decree” by court, following the statement of the chairman of the shoe board. M Shoe Workers’ Protective Union. Haverhill Shoe Manufacturers’ Association. Greetings: The Haverhill shoe industry is in a critical situation. There have been failures, liquidations and removals within the past few months and further reductions of productive capacity are likely. No halfway measures will, in my opinion save the situation nor do I see any ground for hope that the near future will be much better than the recent past. CO N D ITIO N S IN M A Y , 1927 69 Haverhill’s output of shoes during the season now has fallen off from a year ago. The production of women’s shoes in the United States as a whole was slightly larger than a year ago. Our loss of business was not sufficient alone to have created the present crisis; but coupled with the smaller production have been higher costs of materials, complex patterns requiring more labor, greater demands for quality on the part of buyers and, in spite of all this, substantially lower prices paid by buyers to manufacturers. The inevitable result has been seriously unprofitable business for the manufacturer. This severe price situation will almost certainly continue. The retail distri bution of women’s shoes is passing into stronger hands. The buyer, not the manufacturer, makes the price. While there exists an enormous surplus pro ducing capacity, this situation is bound to continue. The low-cost producers are going to get the business and maintain sound finan cial conditions. They will be able to operate fairly steadily and with greater efficiency than can possibly be attained with recurrent long periods of slack work such as characterize Haverhill. I see no likelihood whatever that Haverhill shoe workers will be able to retain their present wage rates. I agree that present wage rates are none too high to give a good yearly wage. Nevertheless economic factors are certainly going to control the outcome. Irrespective of any arbitrator or any existing union, the wage rates in Haverhill will, I fear, be drastically reduced during the next few years, and probably quite soon. Shoe workers must have work and very little work will be available in Haverhill until labor costs are much lower. A stitching room job in Haverhill is not considered good by the more skilled women unless full time will yield $40 a week or better. The men on the more skilled operations in other departments of the factories do not consider a job good unless full time will yield $60 a week or better. I am convinced that such earnings will not long be possible. I believe the time is not far distant when women in the shoe industry will be thankful for $25 jobs, and men for $45 jobs. The present working agreement and the union practices under it, subject the manufacturer to numerous hampering and restricting requirements which reduce efficiency and seriously increase labor costs. The immediate removal of these restrictive practices is required to prevent the fall in wage rates and earnings from being more severe than it need be. The longer these restrictions on effi ciency are in effect, the worse off will the Haverhill industry and the Haverhill shoe workers be in the end. So far as I can see the union is absolutely powerless to prevent the develop ments which I foresee. Worse than that, the union will quite likely be unable to maintain its existence. Unless the union bends it will break. I fear the latter will happen. There is no dominating group in the union prepared to face unpleasant facts. Intolerance and obstruction are met by anyone who undertakes to go contrary to the active few and their activity is largely promoting discontent and encouraging unreasonable demands. The structure of the union makes it in fact very much nearer seven unions with one name than one union with any common purpose, policy, or leadership. There is so much autonomy and independence of the several locals that general officers, however wise and courageous, can not possibly lead or control the organization. The idea of peaceful settlement of industrial disputes is good but it can not possibly be successful under the existing agreement in the Haverhill industry with conditions as they are and with the union as it is. The enormous diffi culties of the situation could be met only by making the arbitrator’s work largely administrative. The arbitrator should be an economist and engineer and he should be free to find out all that he needs to know and to do those things neces sary for the improvement of the industry and for securing as large annual earnings for shoe workers as are consistent with competitive conditions and a profit to the manufacturer. Instead of giving the arbitrator such powers and functions, what have we? We have an agreement so filled with limitations and technicalities that the arbitrator is restricted at almost every turn. W e have woeful waste and ineffi ciency in manufacturing because of slack and irregular production and lack of financial resources on the part of the manufacturer. W e have obstruction and unreasonableness on the part of the dominating groups in the several locals. Result: Much time, effort, and expense wasted in patching up industrial back yard squabbles while the big, important work for fundamental improvement goes undone. Every attempt or recommendation which I have made in the direction of constructive work in the industry has met with opposition. The expense in 70 CO N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L volved has often been pleaded as the reason against the undertaking. Mean while, nearly 10 cents per week has been paid by every manufacturer under the agreement for each operative he employed, and every member of the union has paid the union 25 cents per week in dues; thus about 35 cents per week per operative has gone to the two organizations. The expenses of the shoe board have amounted to about 3 cents per operative per week. I do not see that there is ever likely to be any adequate income available for constructive work while some half dozen paid employees of each organization are kept busy watching and checking each other. It is in my judgment useless to recommend partial measures in the present situation. The thing which should be done, as I see it, is immediate negotiation for the abrogation of the existing agreement. This done, the next step should be a choice by the union and by the association as to whether an arbitration agreement is to be made constituting the chairman of the shoe board in a real sense an administrative officer. Such an agreement should provide only that there will be no strikes or lockouts and that all parties will abide by decisions of the arbitrator. The agreement should contain nothing else. The situation seems to me sufficiently serious to warrant immediate suspension of consideration of all pending cases. The union and association should immedi ately endeavor to formulate policies and appoint delegates empowered to deal with the situation. No hearings will be held by the shoe board until further notice. I do not personally desire to serve through another general wage revision with out such complete change in the agreement as will convince me that by remaining I shall have reasonable opportunity^ to accomplish a genuine and substantial improvement of the industry. (Signed) E d w i n N e w d i c k , Chairman. John D. Nolan vs. Edivin Newdick et al.— Findings, ridings, and order for decree The following facts are agreed: On December 13, 1925, a working agreement known as the “ peace pact” was executed between the Shoe Workers’ Union of Haverhill and the Haverhill Shoe Manufacturers’ Association, a copy of which is annexed to the bill of com plaint. The purposes of this agreement are in the main to prevent strikes and lockouts, fix working hours, and to provide a board of arbitration for the settle ment of industrial questions arising between the parties. The agreement is to remain in force at least until December 31, 1928, and if neither party desires to amend, alter, or annul it, it is to remain in force until December 31, 1930. A similar agreement had been in effect between the parties for about two years prior to this agreement. On December 26, 1925, the defendant, Edwin Newdick, w^ho was appointed neutral arbitrator and chairman of the board of arbitration under the earlier agreement at a salary of $10,000 a year, was reappointed to the same position at the same salary under the present agreement. Under the earlier agreement the board of arbitration decided about 500 references and under the present agreement about 900 cases were decided prior to M ay 20, 1927. On M ay 20, 1927, the defendant, Newdick, sent the communication incorpo rated in paragraph 5 of the bill of complaint to the parties to the agreement and to the newspapers in Haverhill, where it was published. On the same day he left Haverhill and went to New York to attend an exposition of the Shoe M anu facturers’ Association of Greater New Yrork, leaving no information as to when he would return. He returned to Haverhill late in the day M ay 26. On Monday, M ay 23, the Shoe Workers’ Protective Union caused to be de livered to the secretary of the board of arbitration a reference asking for the reinstatement of an employee who had been discharged and was not working. The secretary refused to receive the reference and handed it back to the messenger, who returned it to the union headquarters. On M ay 27, 1927, the secretary of the Shoe Workers’ Protective Union notified the defendant, Newdick, by letter, Exhibit 5, that by reason of the communica tion of M ay 20 and the refusal to hear the matter referred M ay 23, 1927, it had concluded that he had vacated the office of neutral arbitrator, and requested the surrender by him of the keys of the rooms of the Haverhill Shoe Board and all property belonging to said board. The defendant, Newdick, has not com plied with this request and has claimed the right to continue to act under his appointment. CO N D ITIO N S IN M A Y , 1927 71 The Shoe Workers* Protective Union has not referred any matters to the board of arbitration since M ay 23 and has refused to participate in the consideration of five cases submitted by the manufacturers’ association since M ay 27. These cases have been considered by the board in the absence of a representative of the union. Its decisions have been recognized by the union and by the manu facturers, but not in some cases by individual members of the union. The manufacturers have refused to consider the position of neutral arbitrator vacant and have continued to recognize the defendant, Newdick, as the neutral arbi trator. The union has refused to pay its share of the salary of the defendant, Newdick, and the expenses of the board which have accrued since M ay 27. No question of parties or pleadings has been raised. I find that the statement of the defendant, Newdick, of M ay 20, 1927, was a voluntary and honest expression of his judgment of the condition of the shoe industry in Haverhill, formed after a service of 3J^ years as neutral arbitrator, during which time he had considered and decided about 1,400 references, involving industrial questions affecting both employees and employers, and had studied the shoe industry in Haverhill and other localities, for the purpose of enabling him to make proper decision of the questions submitted to the board of arbitra tion. I find that the aim and purpose of the defendant, Newdick, in making the statement of M ay 20, 1927, was to give the employers and employees the benefit of his opinion and judgment of the state of the shoe industry, its competitive condition and future prospects, the danger of unemployment in Haverhill, and a proposed remedy formulated as a result of his experience as neutral arbitrator and study of the conditions of the shoe trade generally. I find that the defendant, Newdick, has expressed by his statement of M ay 20, 1927, an opinion as to the wTages which the shoe manufacturers can afford to pay, in advance of the hearings on the annual revision of wages, which begin usually about the 1st of September, and that this is one of his most important duties under the agreement. I find that although the peace pact calls for all matters to be decided by the board of arbitration, they were, as a matter of fact, decided by the defendant, Newdick, alone, the other members of the board acting as representatives of the parties to the reference. I find that the secretary of the board in refusing to accept the reference of M ay 23 stated that the board was not at that time holding any hearings. I find that the defendant, Newdick, had not authorized or instructed the secretary of the board to refuse to receive references or to state that the board was not hearing cases. I find, however, that she had knowledge of the contents of the statement of M ay 20 and acted in accordance with what she believed was the wish of the defendant, Newdick. I find that on M ay 20 it was the intention of the defendant, Newdick, not to consider any new references until, at least, the parties to the peace pact had taken some action on his letter of M ay 20, and that it was his intention not to sit as neutral arbitrator on the annual revision of the wage scale unless the parties submitted it to him under conditions different from those contained in the peace pact. I find that on his return to Haverhill on M ay 26, or shortly thereafter, he changed his intention and since that date has been willing to continue to per form the duties of neutral arbitrator under the peace pact in its present form. I find that one of the most important objects sought to be accomplished by the peace pact was the immediate settlement of industrial disputes that might arise between the parties. The reference of M ay 23, was by the terms of article 8 of the peace pact, required to be heard and decided within two secular days of the reference. I find that the union was justified by the statement in the letter of M ay 20 and by the refusal of the secretary to receive the reference of M ay 23 in believing that this was no longer possible. I find as a fact that the union in recognizing the findings of the neutral arbi trator made subsequent to M ay 27 on matters submitted to him after that date by the manufacturers did not intend to waive its claim that the position of neutral arbitrator had become vacant and that the letter of M ay 20, 1927, had disqualified the defendant, Newdick. I rule as matter of law that the statement of the defendant, Newdick, of M ay 20, 1927, disqualifies him as neutral arbitrator. I rule as matter of law that the union was entitled to treat the conduct of the defendant, Newdick, as a refusal to act further as neutral arbitrator, and having on that assumption, by its letter of M ay 27, notified the defendant, Newdick, 72 C O N D ITIO N S IN SH O E IN D U S T R Y IN H A V E R H IL L in effect that it considered the place of neutral arbitrator vacant, the defendant, Newdick, could not thereafter change his mind and elect to continue to act as neutral arbitrator under the agreement. I rule as matter of law that the failure of the union to pay its share of the defendant’ s, Newdick’s, salary and office expenses does not prevent the plaintiff from maintaining this bill of complaint. Let a decree be entered in accordance with the first, second, and third prayers of the bill of complaint. (Signed) G e o r g e A. F l y n n , Justice of the Superior Court. Conditions in 1925 to 1928, by Manufacturers and Union Officials ACH of the manufacturers and union officials in Haverhill who was interviewed by representatives of the Bureau of Labor Statistics was asked to describe in a written statement the conditions in the shoe industry in Haverhill during the years 1925 to 1928 and to give the causes of the loss of business and the fear of con tinued loss and depression. Statements were obtained from 17 manufacturers and 4 union officials, and, in part, are as follows: E From manufacturers No. I. Within the last four years I have noticed steadily a reduction of the better shoe manufacturers, both financially and in standard, because of the uncertain labor conditions that they had to contend with. I could mention 20 real shoe manufacturers that have been in business for at least 10 years or better, that are entirely out of business or have moved away because of the above con ditions. The reason is because other cities are manufacturing the same class of mer chandise that is manufactured here; they can handle their labor in such a manner that it gives them a real honest living and still make their shoes 25 to 35 cents a pair cheaper than they are manufactured in Haverhill. In going through several operations only this last week with a shoe manu facturer not 15 miles from here, who is making the same grade of shoes, he con vinced me that his labor cost was exactly 27 cents a pair less on a plain pattern than ours. The same shoe constructed in a fancy pattern, in accordance with the arbitration stitching room prices, would cost approximately 40 cents a pair more. It can readily be seen what we have to contend with to sell our merchandise to shoe buyers who can purchase shoes cheaper from outside factories than they can from the Haverhill shoe manufacturer. There is really only one rebuttal in the argument to the shoe buyer and that is the shoes manufactured in Haverhill are of superior workmanship. W e have been selling the shoe buyer Haverhill and not shoes, and we managed to get away with the talk of Haverhill as a selling argument until the buyer actually woke up and found that shoes can be manu factured outside of Haverhill for less money and just as good, if not better, in workmanship. There is absolutely no way of reasoning with the heads of the union. The attitude they assume is, if you don’t like the conditions the best you can do is to move, because the fixed conditions are here to stay. Living conditions did not cause this city to lose its hold on the shoe business. There is only one thing that has ruined this city, and that is its labor conditions. Within the last three weeks seven concerns have gone broke and three other factories have deliberately moved out of the city of Haverhill because, and only because, of labor conditions. Of the three manufacturers that have moved out of Haverhill, two of them were owners of homes in Haverhill. W e had an order for one hundred 36-pair cases of shoes to a large chain store operator, which pattern he gave us to copy. A certain manufacturer who was making the same grade and the same pattern for this same concern was charging them a certain price. When the writer looked at this shoe he figured that we could make this same pattern in Haverhill in that quantity at the same price. The system in this town is to present a shoe, when a new pattern is adopted, to the manufacturers’ association for piece price. The union also has its representa CO N D ITIO N S IN 1925 TO 1928 73 tive there. The shoe is figured and the basic price is made. The result of this transaction was that we had to return the order because of the fact that our stitching costs on this particular shoe was 20 cents a pair more than the stitching price was with our competitive shoe manufacturer who was in a different city. W e pay the same price for upper leather, sole leather, inner soles, and other mate rials as competitive shoe manufacturers in other cities around Haverhill, and our labor is so much higher that we can not compete with these other shoe manu facturers. It is thus seen that Haverhill is in a precarious condition. If I had no lease on this factory and if I was financially able to move, I wouldn’t stay in this town one extra day longer than I had to. No. 2. The inability to run our own factory. The manufacturer should at all times determine whether his crews should work overtime or not. The unfair limitations placed upon the manufacturer by the demand of equal division of work. The continual interference of union agents. The lack of authority to deal direct with our help. The limitations placed upon the manufacturer by the union. The upkeep with the times regarding modern methods of shoe making and the adoption of modern machinery. The lack of cooperation from the union in general. No. 3. The absence of responsible persons at the head of the union. There has been, and is, uncertainty as to what the immediate future will bring at any time, resulting in a hesitant policy in looking for business. The uncertainty applies to fear of possible strike or disturbance, and is due to the fact that the union leaders are either not big enough to enforce their orders and thereby keep pledges made to manufacturers in regard to prices and strikes, or else the union leaders are seeking for reasons of their own to break down industry or capital as it is to-day. The shoe industry, especially that part with which we are acquainted, is in a state of change, due to a number of conditions. Materials are going up, although they may not do so steadily; orders are hard to get, and the fact that money has not been made in general in the industry has made a state of general uneasiness as to what the future will bring. Other centers that do not have this union are in a more favorable position to shift and take advantage of every change in gen eral busines conditions. They do not have to spend the time we spend in dealing with union agents and with arbitration boards. The petty aggravations by union members act as an irritant all the year and prevent'manufacturers from giving their whole-hearted attention to business. W e feel that we have lost perhaps a thousand cases of shoes this year for which we had done the missionary work, and which we felt reasonably sure were ours. It is our intention not to let ourselves again be put in the position where we can not take business due to strikes, and while recognizing the advantage of Haverh ill’s large labor supply, we intend to either remove or set up another factory outside of this union’s influence. No. 4. During the years 1925 to 1928 the shoe industry in Haverhill has been one long controversy between the manufacturers and the union. The manufacturers were trying to impress upon the union how important it was for them to get a reduction in order to meet competition of the near-by country factories, but without avail. They did not realize, and still do not realize that unless quick action is taken in Haverhill by the union the rest of the workers in Haverhill will join the ranks of the unemployed. When customers are in a store bu}dng shoes, they do not care if the shoes come from some city in Maine, New Hampshire, or from a shoe city like Haverhill, as long as the shoes look as well. The country workers are at present at a point where they can make shoes equally as well as the city workers, and even better in quite a few instances, for city workers are very independent, whereas the country workers are not. A t the time that merchandise was very cheap, and factories were not so numerous, it was possible to make our grade of shoe in Haverhill. Now that merchandise in our line has practically doubled itself, and as country factories grow continuously, it is an impossibility to make our grade of shoes in Haverhill. Before the market rose we had at least the benefit of quantity buying at a price, but now with prices high and labor so much higher than in the country factories, it is an absolute impossibility to make our grade of shoes. W e found that existing conditions forced us to cut our daily production onehalf. Under present conditions we will not be able to make this number of shoes, as we can not compete with our near-by country competitors. The result will no doubt force us to stop production completely before the year is over. 74 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L No. 5. There has been so much unrest and controversy between the manu facturers and the unions here that the average man buying shoes has no con fidence in the ability of the Haverhill manufacturers to deliver the shoes on time. W e make rather a cheap shoe, and yet must pay the same labor cost per operation as the fellow who makes a high-grade shoe. Operators are able to per form a greater number of operations on our shoes in a given period of time than on the higher grades, as the workmanship does not have to be as exacting as on the higher grades. W e believe factories are not properly graded. No. 6. The city of Haverhill was for many years, up to 1925, knowTn as a turnshoe center, and was engaged very extensively in the making of medium-priced turned shoes. About that time there was a great demand for shoes to retail at $2.95, $3.95, and $4.95— with the bulk of the sales known as $4 and $5 sellers. The selling price as already established by the larger chain stores and mail-order houses was a severe blow to the turn manufacturers, as they could not possibly manufacture shoes to retail for these prices, with the result that there has devel oped a large field for medium-priced M cK ay shoes. Some of the manufacturers had foresight enough to give up their turn business and alter their factories for the manufacture of M cK ay shoes. Others, wrho could not foresee this condition, either had to give up manufacturing turn shoes or move to the country towns wThere cheaper labor costs enabled them to make turn shoes to retail for $5. Haverhill was not the only city that saw this opportunity to manufacture $4 and $5 M cK ay retailers. Other centers in New England established factories to build shoes of this grade. These concerns had several advantages over the Haverhill shoe manufacturers. They were able to make shoes fully as good as those made in Haverhill and at less money. They could obtain cheaper labor cost; they were not troubled with strict union conditions such as exist in the city of Haverhill; they had no difficulty whatsoever in obtaining skilled Haverhill labor, due to the fact that many Haver hill manufacturers were obliged to close up their factories. The above conditions caused many Haverhill shoe manufacturers either to move from our city, to liquidate, or to fail, as it was utterly impossible for Haver hill manufacturers to compete with these outside centers in this grade of shoes, of which Haverhill manufacturers themselves were the pioneers. Finally, the union and the shoe manufacturers’ association held a conference and formed what is known as the peace pact. Although the peace pact aided matters as far as relations between employers and employees were concerned, it nevertheless did not tend to stimulate confi dence in the trade, as there was always a fear that there might be a breach at any time because of the strength of the union, and this resulted in many orders going to competitive centers that should have come to Haverhill. Still more orders were lost to the city of Haverhill due to the fact that within a radius of 40 or 50 miles of Haverhill similar shoes are made at from 10 to 25 cents per pair less than shoes made in Haverhill. Sometime during the first part of January, 1928, the neutral arbitrator, as chairman of the shoe board under the peace pact, rendered a decision whereby the shoe workers of Haverhill were to take a cut in wages. This the workers turned down completely, thereby indicating that the neutral arbitrator had authority in name only and rendering the instrument known as the peace pact useless. Should the existing conditions in the city of Haverhill continue, it will mean the driving out of the medium and cheaper grade manufacturers to near-by towns, where more peaceful and better labor conditions can be found, or their failure in business. No. 7. W e were not in business in 1925 and 1926. In 1927 conditions were very poor, owing to threatened.strikes by the union. W e did have one walkout or strike. Outside buyers have no confidence in the delivery on time of shoes made in Haverhill, owing to the above conditions. W e can not compete with the surrounding cities as prices are absolutely too high and the union does not give us half a chance. No. 8. In our opinion, the loss of business and fear of continued loss and de pression is due entirely to local conditions. W e find that out-of-town manu facturers are prospering, while Haverhill manufacturers are continually making assignments. Any manufacturer doing business in Haverhill finds himself the subject of union agents at all times and has no control whatsoever over his life’s savings invested in his own business. Any decisions, any pricey, any hours of labor, any CO N D ITIO N S IN 19 2 5 TO 1928 75 materials to be used, are entirely subject to the approval of union agents. In other words, a satisfactory agreement in favor of the union is all that is essential. Should anything, however, prove in favor of the manufacturer, it then becomes null and void, regardless of agreements that may have been entered into. How can anyone expect to do business under such conditions? Logic in making new prices is a very important factor. Our out-of-town competitors can make shoes 25 per cent cheaper, due to prices and conditions. W e find that some of the most unskilled operators in our factory are earning 100 per cent more than others who perform operations of much more skill. There are some operations in Haverhill that pay 60 per cent more than near-by cities, which, of course, throws Haverhill out of line in competitive selling. W e feel that if conditions rested between our employees and ourselves, that if prices were given us in line with competitive shoe centers, that we could con tinue making shoes in Haverhill. If not, the only alternative will be removal to another city. No. 9. It was during the year 1925 that M cK ay factories making a type of shoe resembling turns appeared in Haverhill and made rapid strides, cutting into the turn-shoe business and forcing some of the turn factories out of business. Others moved out of town, establishing themselves in surrounding towns, or in New Hampshire cities. They obtained a change and new wage schedule in these localities. This was necessary, according to m y opinion, on account of the price it cost to make shoes in Haverhill and on account of the excessive labor demands. W e feel that the loss of the shoe business in the city of Haverhill is going to continue unless drastic and immediate action is taken to give the shoe manufac turers relief, enabling them to compete with other shoe centers that produce shoes at less money. I feel that the shoe industry in Haverhill with the union at its head and they stopping every initiative taken by the manufacturers is one very important factor of the trouble. It is a positive fact, I know of specific cases, where shoe workers will go out of town and work with firms locating themselves outside of Haverhill, and work for less money and longer hours, and yet they refuse this relief to the manufacturers in their own town. These conditions can not go on forever. We, ourselves, are able to get business only during the rush months and we can not stay in business and pay overhead on what we make during the two or three rush months. The only way to get steady business is to be able to compete with the factories in surrounding cities. Haverhill shoes mean nothing to the buyer. Outside factories make as good a shoe as Haverhill and they get the business on account of the conditions that prevail in their districts. Unless the conditions change very soon, the writer seriously contemplates moving out of Haverhill. During the years 1925 to 1928 we have continually improved conditions in our factory. W e have installed new machinery and equipment where it was needed and we feel that our factory is fairly well organized, enabling us to make shoes for our needs if we can be put on the same basis as outside competitors. No. 10. W e started in the shoe business here some six years ago, with prac tically nothing, and have grown until we employ around 650 people, furnishing most of them with steady work the year around. If we were to detail here our experiences with some of the union agents and others from whom we would nat urally expect cooperation for the benefit of all concerned, there would be one endless repetition of selfishness. If we could count on cooperation with our added experience we might be able to grow in the same proportion and give employment to as many more people. It is imperative that we look conditions squarely in the face before it is too late. There must be cooperation on every side in order to overcome the harm that has been done to the shoe industry of Haverhill. In the early history of this country when an important document was being signed one man said, “ Now, no pulling different ways. W e must all hang together in this m atter.” And another answered, “ Yes, or we shall all hang separately.” This applies to the conditions here. W e must get together at once or we lose. W e readily admit that there is a good and bad element in both workers and manufacturers, and as usual, the good have to suffer for the bad. No. 11. Due to conditions which have been forced on the shoe manufacturing industry of Haverhill by the Shoe Workers’ Protective Union, it has been impos sible to operate a factory legitimately at any kind of profit. These conditions, namely, high labor prices, pay and one-half for overtime work, and the equal division of work (that is, keeping on a capacity crew when production dwindles 76 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L down to 25 per cent), are the main reasons for loss of business in Haverhill and continued failures and removals. While our base prices in some cases are not much higher than those of com peting centers, extra after extra is added onto the different operations until our costs are so much higher that it is impossible to merchandise the shoes in com petition with factories of neighboring cities. No. 12. High labor costs and dominating union rules put us out of competition with factories making the same grade of shoes in shoe towns adjacent to Haverhill. M any factories moved to these towns where they found more desirable labor con dition and were able to market their shoes at less price than we were able to make them in Haverhill. The majority of manufacturers who remained in Haverhill were compelled, in order to meet this outside competition, to use inferior materials and were unable to maintain the quality of their merchandise, which caused returned merchandise and lack of duplicate business. The conditions in this factory were of course similar to all others in Haverhill. However, up until the fall of 1927 we were able on account of our buying power, to purchase merchandise at prices which made it possible for us to retain our business. The market in the fall of 1927 became a sellers’ market, and we are now unable to go into the leather market and obtain any advantage by our large buying power. W e feel that the only way Haverhill can continue to make shoes profitably is by a reduction in labor costs, in prices, and more freedom in the management of factories. No. 13. Cities close by are taking the orders we are obliged to turn down for the reason the labor prices are too high for us to figure shoes as the competing factories in other cities are doing. W e feel that certain operations on the shoe are costing too much for the labor and skill necessary to make a good shoe, while on the other hand we would suggest an increase to other operations which are very difficult. However, the old price list is the one we are following and until a new one is drawn up we can not do anything but sit and try to figure shoes to please the buyer. No. 14. The control of the shoe industry in Haverhill by the Shoe Workers’ Protective Union during the past three years has made it impossible to compete for business against other shoe centers where labor leadership is not so domineer ing. In most shoe centers it has been possible for the manufacturers to have the cooperation of their workers, not only as regards prices, but also as to quality of workmanship and in working hours. Competition has been and is so keen and the margin of profit so small that in order to do business with any possible chance of success it is absolutely necessary that the manufacturer have the whole-hearted support of his entire working organization, which is impossible to obtain from Haverhill shoe workers, controlled as they are by their radical leaders. W e find competitors of ours in Derry, Manchester, Amesbury, Seabrook, Newburyport, and other places doing profitable business at prices ranging from 25 to 30 cents per pair less than we can figure. The materials used by them in manu facturing cost the same as ours and, in many cases, more. The cost sheets of manufacturers in the above-named cities disclose that their great saving is on labor, which enables them to take business which we are obliged to turn down, as it would be plain suicide for us to even attempt to take orders on such prices, which is the reason why these out-of-town factories do a steady and profitable volume of business throughout the year and are successful. These workers in factories outside Haverhill are interested in their yearly earnings from steady weekly employment, and not in high-price weekly earnings followed by long periods of dullness as we have in Haverhill. We have ample proof of this from the number of Haverhill workers employed in all these out-of-town factories who ride back and forth daily to these outside shoe centers, putting up with many inconveniences and paying car fare from a weekly wage at least 10 to 15 per cent under Haverhill union prices, and willingly doing this because they know their average yearly earnings from steady weekly employment will be much more than they can earn in Haverhill from a few weeks or months of high-priced wages, followed by long periods of dullness. The out-of-town manufacturer can also afford to construct with a better quality of material on account of his saving on labor, and thus obtain a stronger hold on business, and can meet the prices offered by the chain stores to-day. No. 15. Competition in neighboring towns and cities, violation of the provision in the agreements or peace pact by two strikes or walkouts causing a loss of busi ness and forcing buyers to go elsewhere for shoes, and inability to manage our CO N D ITIO N S IN 1925 TO 1928 77 factories in a saving way. W e can not handle our employees. They are domi nated by the union. If we could control them, conditions in our factory would be 100 per cent efficient. No. 16. The conditions in Haverhill in 1925 made it extremely difficult for the manufacturers to meet outside competition. First, a highly organized union forced a 45-hour week, giving an advantage to outside manufacturers who work their employees from 48 hours in Massachusetts to 54 hours per week in New Hampshire and Maine. New employees immediately became members of the shop crew and entitled to equal division of work in slack periods, resulting in overloaded crews in all depart ments, discouraging individual incentive and depreciating the quality of the prod uct. In January, 1926, a new peace pact became effective, with a five weeks' probation period in hiring new workers. It was helpful but failed to correct the evil. Foremen and supervisors were handicapped in their efforts to secure quality of workmanship through the operation of the above rule. It denied to supervisors the right to discharge inefficient members of the crew at a time when the produc tion is low. The contract stitching room in Haverhill makes competition more difficult. Manufacturers outside of Haverhill each season send hundreds of cases of cut uppers here, have them fitted in the contract stitching room, and then returned to the outside factory to be made. They have not only gained the benefits of our fancy stitching, which adds to the appearance of their lower-cost shoe, but it enables the nonunion shoe manufacturer to get maximum production, incidentally flooding our local contract stitching-rooms with shoes at a time of peak produc tion, which causes shortage of stitching room labor, limiting Haverhill manu facturers’ production to less than capacity, thus causing greater overhead cost. This is most unfair on the part of the union in aiding outside, nonunion factories, where lower standards of wages and in many instances longer hours of work prevail, and it is certainty inconsistent with union principles. In the highly competitive business of manufacturing shoes, the Haverhill manufacturer has, by the conditions imposed upon him by the local labor trust, been most severely handicapped in his efforts to survive. The law of supply and demand has not been permitted to operate. That law is in operation outside of Haverhill, and the Haverhill shoe worker has found out that when he leaves his bench in Haverhill to go elsewhere to seek a livelihood he will sell his labor at a price the other fellow offers him. Is it not inconsistent with union principles for the worker to sell his labor in adjacent towns and cities at a less price than he will sell the same to the Haverhill manufacturer? I will name 1 firm in Boston, 2 in Newburyport, 3 in Lowell, 1 in Salisbury, 1 in Epping, N. H ., and 1 in Manchester that left Haverhill because of the conditions mentioned and are now doing a successful business. [Ten firms were named.] The list is too long to enumerate in full. As a result of these removals Haverhill’s productive capacity suffered a great loss. In October, 1922, the daily production was 65,000 pairs and in October, 1927, the production was 45,400 pairs. A loss of 19,600 pairs daily, or 30 per cent. This does not take into account the losses, from 1920 to 1922 nor the losses from 1927 up to the present time, which are con siderable. Mr. Edwin Newdick came here directly from the labor bureau of New York and served as chairman of the Haverhill Shoe Board for several years. He is a wellknown student of economics, a graduate of Dartmouth College, and a man who for many years prior to coming here gave his time to social service work. He evidently considered it his duty to resort to the public press and give his opinion in regard to the local situation. (See Mr. Newdick’s statement, p. 68.) The local union resorted to court action, claiming that Mr. Newdick was no longer neutral because of this article which appeared in the public press. The court sustained the union and he lost his position for daring to express the truth as he viewed it. Mr. Newdick was originally suggested by the union as a candidate for chair man of the shoe board and not by the manufacturers. He was finally selected for the position by the local citizens' committee after failure on the part of the man ufacturers' association and the union to agree upon a candidate. No. 17. From the year 1925 to 1928 Haverhill shoes were produced largely under the operation of the so-called peace pact. Under this pact a board was created consisting of one representative of the union, one for the manufacturer, and an impartial chairman. The duties of said board were to fix and adjust prices and settle disputes that arose from tinje to time between the subscribers 24011°— 29------- 6 78 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L to the pact. However, the board did not always function in this manner but became a one-man board wherein every thing was settled by the impartial mem ber. This became so because of the fact that cases submitted to the board by either side, regardless of merit or demerit, were sure to carry a predetermined judgment from both sides. On every case there was always a determination to fight for everything and give nothing. Therefore, an impartial chairman in rendering his decision must of necessity create dissention among those who were to lose by that decision. An economic situation faced the industry during this period which was keenly appreciated by the chairman of the board and forced him with an iron hand to gradually reduce prices of labor that had been inflated in the more prosperous times directly following the World War. Competition had become very keen during this period due to the advent of new concerns in the field that were ship ping tremendous quantities of shoes to the market. The amount of shoes going to the market was greatly in excess of the possible consumption. The old law of supply and demand pushed the selling price of shoes far below its proper level. This brought about three classes of manufacturers; (1) The manufacturer who figured his manufacturing costs accurately and priced his shoes accordingly and found himself unable to sell his merchandise; (2) the manufacturer who struggled to meet a competition that could only spell bankruptcy; and (3) the manufacturer who either knew nothing about costs or cared nothing about them but sold shoes to get money for pay rolls and eventually failed, passing his losses on to the merchandise creditor. The first manufacturer did one of two things, either liquidated or located his business in some place where he could obtain lower labor costs by removing himself from the jurisdiction of the bodies that controlled the industry in Haver hill, and thus gained some advantage in his manufacturing costs that would perhaps enable him to compete. In some cases the manufacturer that moved out of Haverhill was able to live and make money; in other instances he was forced out of the running. The third group of manufacturers became an actual menace through one of two reasons— either an utter ignorance of figures and manufacturing problems or a predetermined plan to embark in the enterprise with a distinct purpose in mind to go as far as his creditors would allow him, at the same time drawing out in form of salary all the money that he could and hiding these assets for his use after the inevitable failure. This type of operator is in some instances still doing business and before the industry can be righted he must be driven out of business. He is an illegitimate operator and must be eliminated before the industry can dig itself out of chaos. Now with wages inflated by postwar prosperity and the many concerns liqui dating, moving, or failing, a large number of shoe workers were thrown out of employment. Again, the law of supply and demand steps into the picture. It very naturally follows that the price of labor must go down. But in Haverhill we find a unique situation. When the union was in its ascendency it built up a very strong political machine controlled largely by individuals who for the most part are very keen, intelligent, and who by their efforts were able to create conditions and raise wages beyond a point where any legitimate manufacturer could operate successfully. By the united efforts of this machine they were able to have incor porated in the peace pact many of these conditions and put price fixing beyond the reach of the manufacturer so that they could not be changed for a period of a year. Thus we have a bona fide agreement between two organizations that actu ally is in part defeating the operation, at least temporarily, of the law of supply and demand. During this period of high wages the average worker changed his method of living. The house he used to live in is not good enough for him now, the food and clothes he used to be satisfied with no longer meet his demands, and he finds him self with an appetite created for the better things of life, but does find himself unable to produce the money to purchase these things. By no amount of reason ing can this situation be explained to the worker. Nobody of intelligence will deny that the worker is entitled to these things, but a power greater than that of all Haverhill is slowly grinding in a cold-blooded merciless way to the end that this same law of supply and demand be met. By no means is the worker entirely to blame for conditions in Haverhill. ^ The manufacturers referred to above who are conducting their affairs in an illegitimate way are tricky and unscrupulous and will stop at nothing to gain a monetary advantage, thereby creating an atmosphere of distrust and hate that is so peculiar to Haverhill. C O N D ITIO N S IN 1925 TO 1928 79 From union officials No. 1. It must be borne in mind that turn shoes require the best of material obtainable if they as a product are to be salable. This is in direct contrast to the M cK ay shoe, in which material may be and is used that can not possibly be put in turn shoes. Early in 1925 the turn-shoe business in Haverhill was very good, but the buying market at about that time called for a turn shoe that would retail for $5 or less. Manufacturers in order not to lose customers cut profits on shoes in order to meet the demand of the buyers. The result was some manufacturers went out of busi ness, some liquidated, some failed, and others moved out to small towns hoping to be able to manufacture a turn shoe that would retail at $5 per pair. This trend to a cheap shoe also caused turn-shoe manufacturers to shift to M cK ay shoes, which they could produce at a labor cost of 25 to 50 cents per pair less than the labor cost on the turn shoe. The rising leather market and the low retail price of turn shoes since 1925 are the prime factors, or reasons for the loss of business to turn-shoe manufacturers in Haverhill. Wages for turn-shoe making in the citj^ are below some of the other shoe centers. Other factors are the underbidding of one manufacturer against another on prices to acquire business and the lack of capital. No. 2. Conditions in the shoe industry in Haverhill have been and are governed by the economic conditions of the country as a whole, not only in the shoe indus try, but in all other industries. The law of supply and demand has operated in Haverhill as in other centers. When there was business Haverhill manufac turers always got their share. Overproduction in the shoe industry has caused loss of business in Haverhill. No. 3. In our factories in Haverhill we have many conditions that could be changed that would place the factories in a much better position to do a pros perous business both for operators and manufacturers but all the manufacturers are willing to do themselves or allow the Haverhill Shoe Board to do is to give reductions in wages. In the stitching rooms the work on shoes can be done m any ways. There are some ways shoes can be done to make the cost in labor on some operations from 25 to 4(3 per cent cheaper than the way they do them. A t the same time, on the 25 to 40 per cent saving to the manufacturers the operators would earn more money on the cheaper price but the manufacturer sells his shoes, lets them run along in the factory until many of them are all made, and then sends them to the manufacturers’ association or union headquarters to have the labor cost prices figured for the fitting room. M any times they have been fitted the highest possible way. Then in some instances they have them refigured to try and fit them a cheaper way, but the damage has already been done and the manufac turers have taken the loss. The operators had to learn to do the shoes the first way and now when the shoe is refigured they go over the same thing and learn all over again. W e have tried many times to stop this waste of time to the operators but without success. The manufacturers’ association insists that the manufacturers have a right to change their method of doing their work and have them done a different way, which of course Js true, but if the manufacturer chooses to run his business in this slack manner then let him take the blame of his shoes being higher than those of his competitor and not blame the union. The union has stood enough through the loss of time and money to its members. W e have in many of our factories supervisors who have no real knowledge of the right way to fit shoes or how to handle help. This, I believe, is one of Haver hill’s greatest handicaps. If the manufacturers would hire real, competent supervisors and pay the price it would be a big saving in quality of work, money, and production. I think this is the opinion of both union and manufacturers’ association representatives. W e have some efficient supervisors in our city and it is a real pleasure to visit these factories and see their systems. When their shoes come to the association or union to be priced there comes with each style shoe a description telling just how they are to be done. This is a big saving in time to the parties who figure the shoes. Efficient factories are far in the minority. Conditions in our stitch rooms indicate that there is much unnecessary waste in both money and time to both manufacturer and operator. Many of our oper ators who work in factories and also keep homes have small children to be taken care of while mother works. The piece help spend hours at a time in factories that they do not have any work at all. If these operators could be told at night not to report for work until 9 o’clock the next morning or noon whenever no work 80 C O N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L would be ready for them early in the morning, they could do work at home and make their money go further toward paying bills. This again is poor supervision. In these same factories you will not find the girls who work by the day loafing around because it costs the firm money. In our efficiently run factories this is not true to nearly so large an extent. They are careful not to ask the help to report for work when the work is not ready for them. No. 4. For one to trace the memories of the ups and downs of the shoe industry of the city of Haverhill for the past four years requires a very large variation of research: First, the amount of business, that is, the output for each year; second, the help employed; third, the agreements entered into by employer and employee. This should all be carefully balanced by the amount of business of other manu facturers in other shoe centers making a similar grade of shoes. To do this requires time, study, and research, which the writer, forced to earn his living by the sweat of his brow “ when given an opportunity,” is Unable to devote at this time. Nevertheless, wishing to comply with the request of the Government survey board, they having asked for my personal viewpoint, I shall endeavor to do my best to cover at least some of the ground. After having experimented with many forms of agreements and arbitration contracts, the union and the manufacturers’ association decided to enter into what they termed a peace pact and hire a neutral man whom they believed qualified to do the work, at a salary of $10,000 per year; namely, Edwin Newdick. The above agreement was in effect in 1925. The functioning of the shoe board is so well defined in the brief and other knowledge given the respective officials of the Government, I need not go into that part of the question. When this agreement was being negotiated the manufacturers came before the people in mass meetings called by the union, requesting them to sign the agreement which changed the work week from a five-day week to a five and one-half day week, for which they promised the workers a 50-week a year business and they would fill their factories with shoes. In the signing of this agreement the manufacturers received all they requested; six months later they appeared again before the people with the state ment that they were unable to secure orders and requested amendments to this agreement. When the revision of wages comes up each year, January 1, the union has in in the past appointed committees from each local to go to the competitive centers where the manufacturers claim competition and gather information regarding prices and conditions. This information was submitted to the manufacturers’ association and the shoe board with a request that they check up all information prior to any decision being made. This has been resorted to each year at an expense of many hundreds of dollars to the union and so far has amounted to practically nothing. When Mr. Newdick first came to town he did not wait to check up the union’s information but handed down a 25 per cent reduction. The workers believed this to be a grave injustice in the face of the high cost of living. But under the impression it might bring business to the city, as promised, they accepted the reduction with little comment but with great disappointment when instead of more business they received less and a great deal less money and their condition became deplorable. The stitchers or “ fitters” on account of the nature of their work have been able to get back some of their money but the other locals, in spite of all that could be done, remain very close to the reduced figure; hence, the “ outing” of the nigger head operators in M ay, 1927. This reduction did little or nothing for the manu facturers as the buyer took advantage of it also and demanded their shoes at a reduction to correspond. There are a few factors that enter strongly into the business methods of Haver hill: First, the general depression of business throughout the country since 1920; second, the inefficient management by the method of hiring unskilled and cheap supervision; third, the manufacturers’ failure to cope with a situation dangerous to any industry, namely, the buying of shoes by the jobber and return of said shoes when shipped. The same buyer having a man on the ground to buy the same shoes, when returned to the manufacturer, at a great reduction. This practice is common. The object of this survey is to determine why firms leave Haverhill. The writer is trying to confine himself to some of the reasons and nothing more. * * * * * * * T h e ----------- Co., a very prosperous firm, with unlimited credit, bought leather in large quantities and sold their shoes, I am told, for as low as 50 cents per pair under the cost of manufacturing. Finally, of course, they failed, dragging down other small firms with them and crippling others. S T R IK E S AND LOCK OUTS 81 It is impossible to convince the Haverhill shoe manufacturers that they are not the only ones who are not working at full capacity, and having talked it so long they have really become convinced it is true. These manufacturers claim competition from the surrounding country. When gathering information for the union, we got the statement from th e ----------- Co. of Auburn, M e., T h e ------------Co. of Exeter, N . H ., and t h e ----------- Co. of Manchester, that their worst com petitors were Haverhill firms. T h e ----------- Co. claimed that t h e ----------- Co. of Haverhill took two large orders from them. The manufacturers of Haverhill buy the cheapest materials possible to procure and expect the operators to make the shoe, “ which they d o .” As illustrated while gathering the information for the 1928 price adjustment, shoes were bought in Lynn “ a Lynn product.” At a public hearing of the shoe board when the union and the manufacturers presented their case the abovenamed shoes were on exhibition for the purpose‘of figuring in comparison with the Haverhill-made shoe. A comparison of workmanship was started by a super visor of a factory. In every case the Haverhill shoe could be picked out by the superior quality of workmanship and the inferior quality of leather. The general president of the union and the undersigned as chairman of the district council, together with a Boston lawyer, Joseph Bearak, realizing the walkout was in violation of the peace agreement, tried to sound the alarm. They held many meetings with the citizens7 committee, who in turn did all that could be done, but the manufacturers voted, when they finally held their meeting to vote on the question, to stand by the decision of the board. Strikes and Lockouts ARTICLE 2 of the agreement between the union and the rnanu/\ facturers* association (p. 28) states that “ There shall be no strikes, lockouts, or cessation of work during the life of this agreement. This article is not arbitrable.” More than 5,000 union shoe workers in Haverhill went out on a general strike January 19, 1928, in protest of a wage decision by the Haverhill Shoe Board. The decision, which reduced wage rates, was made after the filing of briefs (pp. 43 to 68) by the manager of the manufacturers’ association and the attorney for the union. The manager in his brief said the manufacturers “ must have reductions in labor costs of approximately 20 to 25 per cent.” The attorney for the union asked for “ a restoration of part of the 1924 cut.” Mr. Edwin Newdick, the chairman of the shoe board, on May 8, 1924, issued a statement in which he said: “ The reduction is an average decrease of nearly one-fifth, or 20 per cent, of present piece rates on fancy shoes in the average factory where the making room is classified as grade 3. On plain shoes the reduction will be about 15 per cent.” The hearings of the shoe board were conducted as provided by article 6 of the agreement. The members of all locals of the union in Haverhill except No 2 (turn workmen) engaged in the strike. The turn workmen issued the following statement: To the editor of the Gazette: W ill you kindly allow us, Local No. 2, S. W . P. U ., space in your paper to state our position in the present misunderstanding, if a misunderstanding exists. Local No. 2, turn workmen, has had contracts and agreements with the shoe manufacturers of Haverhill for the past 30 years. These agreements were made with the shoe manufacturers under various forms of arbitration. W e want to announce to the citizens of Haverhill and also to the citizens out side of Haverhill, that we have yet to break an agreement that we have attached our signatures to. If our signature to an agreement is not to be depended upon, then those with whom we sign agreements will not respect our signatures. W e are at present connected with that working agreement that has proven so unsatisfactory, but we intended to live up to that agreement as we have lived up to all our agreements in the past, which we have attached our signatures to. 82 CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L Local No. 2, turn workmen, has no mysterious committee appointed, or any so-called big brother clubs. In conclusion, we would ask as a favor from the public press of Haverhill, to tell the world that the turn workmen of Haverhill are the most skilled turn workmen of the turn work industry, either in the United States or elsewhere. (Signed) S i f r o i d J. P o t h i e r , President. H e r b e r t T a y l o r , Agent. H a r o l d S e a v e r , Secretary. As indicated in the statement by the turn workmen, the strike was unauthorized as it was directed and managed by a “ mysterious committee” or an “ emergency committee” and not by the general officials of the union, who at the beginning of the strike declared that no authorization for the strike had been given by either the district or general officers of the union. The Secretary of Labor and the Commissioner of Labor Statistics, when the request for a study of conditions in Haverhill was made, asked Mr. Nolan, the general presi dent of the Shoe Workers7 Union for an explanation of the strike. The president stated that it was really a revolution and that the officials were at that time unable to control the workers. This state ment is confirmed by Mr. Edwin Newdick, chairman of the Haverhill shoe board, who in May, 1927, in a statement (see p. 69) said: * * * There is no dominating group in the union prepared to face unpleas ant facts. Intolerance and obstruction are met by any one who undertakes to go contrary to the active few and their activity is largely promoting discontent and encouraging unreasonable demands. The structure of the union makes it in fact very much nearer seven unions with one name than one union, with any common purpose, policy, or leadership. There is so much autonomy and independence of the several locals that general officers, however wise and courageous, can not possibly lead or control the organization. Mr. Newdick had been chairman of the board for more than three years when he issued the statement. The strike was settled January 29, 1928, by the following agreement: It is hereby agreed by and between the Haverhill Shoe Manufacturers’ Asso ciation and the Shoe Workers’ Protective Union— 1. The workers shall return to work in their respective places and be paid 1927 prices. 2. A committee of three from the association and three from the union shall be elected or appointed for the purpose of amending the peace pact. 3. A committee of three from each side shall be elected to inquire into the con ditions prevailing in the industry and report their findings to both parties with recommendations; the committee to have full authority. The work of paragraphs 2 and 3 to be done by the same committee. 4. The wages deducted by the employers shall be returned to the workers within three weeks from the day they return to work. It may be seen that No. 4 of the agreement provides that “ The wages deducted by the employers shall be returned to the workers within three weeks from the day they return to work.” This means that employees who worked any time during the period from. Jan uary 1 to 19, 1928, and kad been paid for such work at the 1928 rates in effect after the reduction were also paid as required by this agreement the actual difference between the amount earned at the 1928 rates after the reduction and the amount they would have earned at the 1927 rates before the reduction. In 1927 the members of the side lasters Local No. 8 went on a “ vacation or outing” because the increase in pay granted them at ST R IK E S AND LO CKO U TS 83 that time by the shoe board was not as much as they claimed it should have been. In April, 1928, the wood healers of a factory used defective heels on about 6 cases of shoes. The officials of the factory were not informed of the defects and consequently poor work resulted. A member of the firm saw the poor work, called attention to it, and asked the workers to remedy the defects. The heelers quit work immediately, left the factory, and did not return until the manufac turer asked them to and agreed to pay for the work of fixing the heels. It seems that in this particular case there was lack of coopera tion between the officials and employees, and also that there was need for provision by the establishment for efficient inspection of supplies. A company with about 30 employees opened a shoe factory in Haverhill early in August, 1928, without entering into an agreement with the union and without making any effort to do so. After the factory had been in operation a few days, agents of the Shoe Workers’ Protective Union called on the company and asked for an agreement. No agreement was made, and on the 10th of August three agents of the union appeared in the street near the factory. All employees went on a strike. The company was unable to complete and fill its orders on time. The strike continued about two wreeks and was settled when an agreement was made with the union. This is a fair sample of the methods followed by many small manufacturers in the city. In May, 1928, the employees of a small shoe factory who were members of the Shoe Workers’ Protective Union wrere called out on a strike. The factory at that time had been in operation four years as an open shop. The strike resulted in the following decree of the Superior Court of the Commonwealth of Massachusetts: Final decree This cause came on to be heard and was argued by counsel and thereupon, upon consideration thereof and upon agreement of the parties made in open court, it is ordered, adjudged, and decreed as follows: That no members of the Shoe Workers’ Protective Union will at any time at tempt to induce any employee of the plaintiff to break a written contract of em ployment for a fixed period of time which said employee may have with the plain tiff, provided that the plaintiff has given written notice to the Shoe Workers’ Protective Union of said contract; and provided further that before entering into such a contract the plaintiff shall notify the general secretary-treasurer of the Shoe Workers’ Protective Union of said application for employment; and pro vided further that if said general secretary-treasurer truly informs the plaintiff that said applicant is a member of the union at the time such notice is given to him, the plaintiff will not make such written contract with the applicant. That upon demand by the plaintiff for official information concerning such membership, said general secretary-treasurer will submit the records of the Shoe Workers’ Protective Union to the plaintiff so far as they bear upon the member ship of said applicant. That such notice and information as said general secretary-treasurer is herein required to give shall be given forthwith when the matter is drawn to his personal attention. That the defendant shall not solicit any employee of the plaintiff who has entered into such contract to become a member of the Shoe Workers’ Protec tive Union while such contract exists and shall not intimidate or otherwise induce such employee to commit a breach of such contract. That the defendants will not picket the plaintiff’s factory in any other than a lawful manner, without force, violence, or intimidation, "and at no time will 84 C O N D ITIO N S IN SH O E IN D U S T R Y IN H A V E R H IL L there be more than two pickets on duty at or in the vicinity of the plaintiff’s factory. That otherwise the bill of complaint is dismissed without costs to either party. By T h e C o t j r t . Entered M ay 23, 1928. In discussing strikes in Haverhill, five representative manufac turers and one leading union official spoke as follows: Manufacturers 1. One does not know from one day to the other whether his help will report for work the following morning or not. In one instance about a year ago the side lasters decided they should have more money, therefore, they took what they termed an “ outing” and remained out for some time, thus tying up some factories for a long time, which was against the peace pact. And again, a short time ago, because a decision was handed down by the head of the shoe board against them, they decided they would tie up the Haverhill shoe industry trade, which they did for more than a week. Therefore, it can be readily seen that peace pact or no peace pact, as long as the decision is in opposition to their wishes, they do not intend to live up to any thing between themselves and the manufacturer. A complete understanding must exist between the union and the manufacturers. If the manufacturer is going to be subjected to breach of contract such as “ out in gs” and “ strikes,” how can he have confidence to solicit future business and how long will the buyers have confidence to place business in Haverhill? The peace pact was drawn up and signed in all good faith between the union and manufacturers here in our city, which promised there would be no walk outs or strikes. Last year (1927) an “ outing” was called, which was a cowardly alibi for a strike. W e replaced those strikers with new men, but it took us many months of hard work to overcome the loss suffered through their breach of contract. Again this year a secret committee connected with the union called a strike, which lasted 10 days, which was another violation of their contract. This secret committee had the power of calling this strike without the sanction of the k union. This action was a dark blot on Haverhill, which resulted in the buyers’ washing their hands temporarily and in some instances permanently of Haverhill. How can we have any confidence that the secret committee will not call a strike at any time they want to? One of our customers, who placed orders for an enormous amount of business with us, had previously bought shoes in Haverhill, but on account of labor con ditions stopped placing business here some four years ago, and since that time he has been inconvenienced twice by so-called “ outings” and “ strikes.” He is so disgusted with labor conditions existing here that we do not know whether we shall be favored with his future business or not. Something drastic has got to be done and done quickly, and we know whereof we speak. The blame can not be placed entirely in one place, as there are weak spots in the armor of a number of contributing sources, and these must be adjusted quickly, or it will be too late. W e know personally from the buyers’ viewpoint, that they are skeptical of placing any more business here, and we are giving this information for the good of the city. W hat is Haverhill without the shoe business, since it is practically the only industry here? It means a death blow to the population, which has decreased from 53,000 to 43,000 and will decrease more in the next year. It means a big loss in real estate and all kinds of business depending on the shoe industry. If conditions will not allow us to continue doing business here, we will be obliged to go elsewhere. W e have made no idle boasts of moving, and this is not one. If we once decide to go, no late-day inducements will cause us to reconsider. 2. The peace pact means nothing as far as the union is concerned, as was evidenced in a walkout over a year ago and a general strike of some ten days which occurred in January, 1928. The strike completely closed our plant for that time. The secret committee and the like may be blamed. The conditions leave the manufacturer helpless. The union or committee abides by the peace pact only so long as it pleases. Otherwise, it is utterly disregarded and broken. 3. W e have had many instances during these three years, and only recently, when our judgment has been disputed by contentious union agents who have S T R IK E S A N D LO CKO U TS 85 tried to coerce and bulldoze us to keep worthless workers in our employ, under the threat of a general walkout. 4. Conditions in the shoe business in Haverhill are not good at the present time. In 1927 the lasters walked out and caused production to cease. This caused loss of a good deal of business and since then the fear of another walkout has always been prevalent. In 1928 we had a strike which also caused loss of a lot of business and loss of customers. 5. The latter half of 1927 it was necessary to elect a new chairman for the shoe board. The manufacturers’ choice was the present holder of this office, M r. Frank C. Richardson. He was formerly agent of the cutters’ local and a man of excellent character. The union opposed his election but he was finally elected by the citizens’ committee, as provided in article 6 of the agreement. Shortly after the new chairman took office the union and manufacturers both asked for revision of prices, as provided in the peace pact. Said prices to become effective January 1, 1928, for the entire year. Immediately following the request of the manufacturers for revision of wages, the inner circle or the so-called emergency committee of the union held meetings, the purpose of which was clearly evident. It was common talk that thq real excuse for the existence of the com mittee was the threat of strike, if the neutral arbitrator gave a wage decision downward. Manufacturers realized that this was no idle threat, as in 1927, when the side lasters struck after Mr. Newdick, the then neutral member of the Haverhill Shoe Board, granted them a slight increase, because they thought it was not large enough. The chairman of the shoe board, who succeeded Mr. Newdick, did, in December, 1927, give the manufacturers approximately 8 per cent reduction. The new rate became effective January 1, 1928. The workers went out on a strike on January 19, 1928, and stayed out approxir mately 10 days, causing a great loss to the Haverhill shoe manufacturers not only in the amount of business involved but the undesirable notoriety broadcasted through the country that this city was a shoe center where continual strife existed. The effect on the buyer of shoes can well be imagined. Our local concern suffered at least a loss of approximately 300 36-pair cases of shoes by cancellation. Fortunately, the shoes were not in process of manufacture nor was the stock bought because of warning by timely threats of the so-called emergency com mittee. Because of a threat of strike, some manufacturers discontinued cutting shoes as the day approached when it had been broadcasted that the strike was to take place. Some union members were unfair in stating that this was the cause of the strike, but a very careful study of the existing situation prior to the strike will disclose the real facts. It would be well to state at this time, that since the first of the year, because of the above-mentioned condition, we have lost the firms of Ayer & Williams, Seldon Shoe, Duane Shoe, and many others. It would be unnecessary to add that the strike was illegal. Again the peace pact proved to be worth nothing more than the paper that it was written upon. Union leader In the month of M ay, 1927, Mr. Newdick, neutral member of the Haverhill Shoe Board, believing the economic condition of the country in a bad way, became alarmed at the Government figures of importation of shoes— the greatest in history— and the wheels of the shoe industry in this country practically at a standstill, and wrote a letter (see p. 68) for publication dealing with the place he had jurisdiction over in prices. The union took exception to his communi cation, stopped paying part of his salary, although they paid for half of the maintenance of the board, and took Mr. Newdick into court. The court sus tained the union and rendered a decision (p. 70) disqualifying Mr. Newdick from holding this or any similar position in the State of Massachusetts. This left the shoe board without a chairman and continued so for months or until October, 1927. When finally names were submitted by the union, one name only was submitted by the manufacturers, that of Frank C. Richardson, the names were then submitted to the citizens’ committee as arranged for by article 6 of the peace agreement. Mr. Richardson, a former business agent of the cutters’ union, was selected in spite of a vigorous protest by a large majority of the union members. The price adjustment was about to take place. Mr. Richardson, the new neutral member of the shoe board, a shoe cutter, knew nothing of the other departments of the shoe industry. The union gathered information (see brief, p. 46). The manufacturers’ brief (p. 43) cited possible earnings per week 86 CO N D ITIO N S IN SH OE IN D U S T R Y IN H A V E R H IL L of top stitchers as $74.71, $61.67, $67.30, $56.41, and $44.04, and of cutters as $69.45, $69.87, $54.45, and $69.04. The union checked up some of these earnings and found them due to overtime work, got affidavits to that effect, and submitted the evidence to the shoe board. The neutral member of the board made his decision reducing wage rates. This decision proved to be too much for the union to stand, added to the conditions prevailing in nearly all factories, especially where retail work is made. It would reduce the worker below a living wage, hence the walkout in January completely tying up the industry. Overtime HE regular hours of operation of the shoe factories in Haverhill according to article 5 of the agreement between the union and the manufacturers’ association are from 7.10 to 11.50 a. m. and 1 to 5 p. in., Monday to Friday, and from 7.10 to 11.50 a. m. Saturday, or 48 per week, during the months from September to May inclusive; and from 7 a. m. to 12 noon and 1 to 5 p. m., Monday to Friday, or 9 hours per day and 45 per week, in June, July, and August. The article also provides that “ Overtime work shall be granted at the discretion of the neutral arbiter, if the manufacturer can show such overtime to be necessary,” and that “ overtime over 48 hours shall be paid for at the rate of time and one-half.” The manufacturer makes his request in writing to the chairman of the shoe board, specifying the number of employees in each occupation and the hours of overtime desired and the reason therefor. The permits for over time are issued to the manufacturer by the chairman and returned after the completion of such work with a statement as to the number of employees and hours of overtime worked. T T a b l e 11.— Number of 'permits and hours of overtime worked each week} January to April, 1928 Week ending— Jan. 6________________________ Jan. 13___ __ _____ _______ Jan. 20_____________ _______ Jan. 27 _______________ _____ Feb. 3 ______ _______ Feb. 10 _ _ Feb. 17______________________ Feb. 24_____________ ____ _ Number of per mits granted Number of hours of over time worked 2 4 4 38 19 12 34 30 50 49 290 193 438 700 Week ending— Mar. 2_ __ ____ __________ Mar. 9______ _______________ Mar. 16______________________ Mar. 23_______ ____ __ ___ Mar. 30___ ______ __ _ ___ Apr. 6_ __ Apr. 13____ ______ __________ Number of per mits granted 30 53 67 84 79 20 9 Number of hours of over time worked 489 519 541 1, 200 1,136 - 164 20 The shoe industry is seasonal. When shoe factories are busy, shoe workers are employed full time or nearly so, and business in general is very good in the city of Haverhill. When the factories are not busy, due to lack of orders, labor has no work or is employed much less than full time and business in the city is bad or very poor. Production, actual hours of work available, and amount of pay rolls are generally highest during weekly pay periods in March and Sep tember and lowest in January, June, July, and December. Overtime permits and overtime hours are few in number in months when pro duction and pay rolls are lowest, and quite numerous in months of peak production and pay rolls. (See Tables 8, 13, and 14 (pp. 24, 95, and 99) and figures in Table 11.) O VERTIM E 87 There is, however, little variation in employment or number of employees in the regular force of wage earners, due to that part of artiple 3 of the agreement which provides that “ there shall be no laying off of members of the crew, and during the slack periods work shall be distributed as equally as possible among the crew.” During busy seasons temporary employees are added to the regular working force, usually for periods of less than five weeks. If retained for five weeks or more an employee automatically becomes a member of the regular crew, and therefore materially decreases average earnings per week and per day, more especially during slack periods. Overtime is considered by the manufacturers as necessary at times in order to meet requests of customers for the rushing of orders and to get out orders on time and prevent cancellations and losses after unavoidable delays. The Bureau of Labor Statistics made its regular biennial study of wages and hours of labor in the boot and shoe industry in the United States in July, August, and September, 1928. Data were collected for 48,658 wage earners of 157 shoe factories in 14 States. Only 21 of the 157 factories paid at the time of the study an increased rate for overtime and 8 of these were in Haverhill. Eighteen of the 21 paid one and one-half times the regular rate for overtime to all employees who worked any overtime, one paid one and one-half times the regular rate to workers in the treeing departments only, one paid one and one-half times the regular rate to all employees who did any work on Sundays and holidays, and one paid 20 per cent extra— or one and one-fifth times the regular rate— to employees in the cutting department, and 10 per cent extra, or one and one-tenth times the regular rate, for overtime to the employees in the other departments. Haverhill shoe manufacturers and union leaders w^ere questioned concerning overtime work and rates of pay for such work. Eight manufacturers and three leading union officials answered as follows: Manufacturers (1) In our packing room, which is in the treeing department, we were a little behind in our shipments and requested our men in the treeing room to work one hour extra at night, or from five to six, so as to be able to get our shoes out that we w^ere late on. They agreed to do this and requested time and a half pay for this extra hour and we thought this was very unreasonable. These men are pieceworkers and we. w^ere satisfied to pay them for the w^ork they w~ould do but we were not satisfied with the time and a half pay that they requested. I men tioned the fact that we could easily put another machine in the room, get another man, and get our work out. W e thought it was to their advantage to allow them to make this extra money and that they were entitled to it. If a man is put in our room we have to keep him after he is with us five weeks. That is a ruling of the union. When the work comes through in just an ordinary way we have to divide it equally among the crew including the new or extra man. In other words, we tried to point out the advisability of their working this extra hour and not burden the present crew with an additional man. Our crew themselves took the matter up with the agent of their local union and although they w^ere satisfied to work under the conditions outlined their hands were tied and had to either request and get time and a half for this hour or suffer the consequences of over a year's run by adding on a new man. That is another condition that exists in Haverhill that does not exist in any other part of New England, and as long as such conditions exist this city will lose and must lose its better shoe manufac turers and help. (2) The Monday before Easter Sunday we received a wire from our salesman and also a letter from several of our customers to the effect that if we did not get our shoes to them for the Friday and Saturday before Easter Sunday, orders 88 CO N D ITIO N S IN SH OE IN D U ST R Y IN H A V E R H IL L would be canceled. In order to get these shoes out in due time overtime work was necessary in several departments. W e got a permit from the chairman of the Haverhill Shoe Board in due form to work overtime. The agent of Local No. 2, which is shoemakers, refused to honor the permit (he has no jurisdiction to do so) and consequently the men refused to work. It took considerable pleading and humbling of myself before I could convince the agent that my men should work. While my men were willing to work, at first the agent firmly denied to honor the permit; however, he was convinced I was to suffer loss by reason of cancellation of orders if these shoes were not delivered in due time, and the men were permitted to work. The same condition arose the following night with w^ood heelers. The men are supposed to work upon presentation of a permit from the Haverhill Shoe Board without being sanctioned by the agent; however, the agent insists that they are to countersign our permits or the men will not work. (3) W e feel that the question of overtime has caused the loss of thousands and thousands of dollars in Haverhill during the two rush periods of the year. During the months of March and August we found ourselves in a position where a small number of operators are needed a few extra hours per week. During our last rush we had to pull every wire possible with some of the union executives in order to get a few hours overtime, a great deal of which, however, was entirely refused us. It seems rather a pity to see orders for shoes canceled and have them returned to factories due to late delivery wiien the shoes could have been shipped on time and would have given the employees a little extra money. (4) In order to meet competition from factories operating outside Haverhill, it is absolutely necessary that wages and conditions in our factories be adjusted. W e do not ask for a large cut, but a reasonable one, and only on those operations which are overpaid. If there are operations underpaid, we are willing to have them adjusted. The biggest factor of all is factory conditions. There is no limit placed on the time the factories out of town can work, thereby being able to handle rush deliveries. If we are not allowed to work overtime, how can we compete with the out-of-town factory, and if we can not make shipment of shoes in the time desired, we not only lose reorders on these shoes, but will not be favored with new business from these concerns. Is not this point a good one with which to start cooperation? There is nothing to lose by acceding to this point, and everything to gain. (5) W e never could rely on getting permits for overtime when we were par ticularly rushed and we did not have space to put on more workers. Permits would be granted by the shoe board, but we were unable to get the union agents to honor them. They insisted on putting on extra help, although we showed them that we did not have room for any more. W e have in our factory an edge trimmer who was making about $85 per week. The agent of that local wanted us to put in another machine and another operator. This came up on applica tion for overtime. W e were paying the union price. (6) At the height of the Easter rush, our beater-out was taken suddenly ill and was obliged to stop work. W e hired another man in his place who was not quite so familiar with the work, and consequently held up production. In order to make shipments on time, we requested the new man to work a little extra time on Saturday afternoon. He readily consented. W e took the matter up with the shoe board and were granted a permit. However, the union agent objected and told the operator he would be fined $200 if he did work on that afternoon. The result was no w^ork was done and the shoes were delayed indefinitely. In certain cases, where shoes have been held up for lack of stock and inability to procure it on time, our customers have threatened cancellation of orders unless the shoes were delivered in a special specified time. To meet such conditions we go to a worker and ask him to do us a favor and work an extra hour or so. In order to have him do this we are obliged to fill out an application for overtime work which is furnished by the shoe board. To get a permit for overtime On the day on which the request is made, it is necessary to make the request for the per mit before noon on that day. If we receive a telegram threatening a cancellation, and do not call the shoe board before the afternoon (as we did not receive the wire in the morning) we are obliged to go through a lot of red tape, even though the worker himself is agreeable to do the extra work of an hour or two. Many shoe manufacturers do a lot of favors for their help. They in turn ask for cooperation when necessary. In most cases the help is willing to return favors, but the outsiders must give their consent before the worker can reciprocate. O VERTIM E 89 (7) W e are compelled to pay time and one-half for any overtime work we want done when conditions of the trade demand shoes in a hurry, or through having to wait for certain kinds of material, which is no fault of ours, but still adds to the cost of manufacturing shoes. If, on the other hand, we do not work overtime and are late in delivery the orders are canceled, which means a serious loss. (8) Prior to January 1, 1926, overtime permits could be secured only through permission of the union agents. Willingness of operators to work overtime were oftentimes ignored by agents. The new peace pact, in effect January 1, 1926, made provision for overtime permits to be granted at the discretion of the chair man of the shoe board. It proved very helpful to the industry until the latter half of 1927 and the first few months of 1928. Some locals evidently instructed their members to ignore permits granted by the chairman of the shoe board unless permission was also given by the agent of the local. The local agents usually denied the permit. Local No. 8 was the principal local that violated this clause in the peace pact. Union officials (1) Our members work overtime as provided in article 5 of the agreement. The overtime is paid for at the regular rate. This statement may seem to con tradict some of the manufacturers. An employee may work one or more hours outside the regular hours of operation per day on one or more days per week and yet be paid at the regular rate of pay for such overtime due to the fact that such employee worked less than 48 hours during the wTeek when work was done outside the regular hours of operation. (2) All permits for overtime in association factories are granted through the shoe board. After a permit has been granted the shoe board notifies the local, naming factory, department, and operation for which overtime has been granted. The peace agreement, however, calls for an investigation by the board before permits are granted. Unfortunately, too many times investigation has been omitted. In fact, very seldom was an investigation made, with the result that the privilege was very much abused. It is understood that through the summer months no permits were to be given except in very urgent or emergency cases. However, permits were issued for the asking. In the conference leading up to the peace agreement it was agreed by both parties that time and a half would be paid for all overtime. This, the union understood and was led to believe means any time after a 9-hour day. The agreement as signed, however, read after a 48-hour week. Consequently the manufacturers refused to pay for over time until 48 hours had been worked in any one week. If an employee worked overtime the early part of the week and loafed the remainder of the week he would receive no extra pay. This was plainly the fault of the agreement, but the plan mutually agreed to was said to be different. The union suffered under the above-mentioned conditions until finally they were forced to action. When the chairman of the shoe board issued a permit to a company after calling the manager on the phone and asking him if he was going to pay time and a half for the overtime, he answered “ Absolutely.” On investigation the shoe board found he was not paying the extra for overtime. The chairman of the shoe board refused to issue any more permits to him, and the lasters’ local refused to permit their men to work on any permit until their local was consulted. The council sometime in July passed a motion of a similar nature including all locals. But in spite of this action of the council, Locals 8 and 10A have issued permits where, in their opinion, emergencies existed. The chairman has changed his tactics of late and went to the other extreme, turning down requests for permits. In many recent cases where the chairman has turned down requests for overtime the union agents upon investigation have granted permits. (3) Overtime permits are granted to association factories by the shoe board when, in the opinion of the board, they should be issued. The requests for them are investigated by the agents of the several locals involved, and approved if there are no idle machines where operators can be placed at work to keep up production. The articles in the peace pact governing the issuing of permits and the payment for overtime have been lived up to. Overtime in nonassociation factories is granted by application direct to the local involved, and is granted if conditions applying to association factories on overtime are lived up to. Overtime permits are also granted in the case of congestion at individual machines and in departments. 90 C ase CO N D ITIO N S IN SHOE IN D U ST R Y IN H A V E R H IL L N o. 1702.— Shoe board overtime decision concerning cutting-room overtime payment (Referred to arbitration by the union July 9, 1928; hearing, July 11; decision, July 12) The union asks time and one-half for time worked above the specified daily schedule of hours on June 21 and June 22. The firm, first made application for three hours on Saturday morning after having consulted with each member of the crew who, with the exception of one or possibly two men, were willing to work. The chairman, being opposed to Saturday morning work (unless emergency exists), took the matter up with the supervisor and advised the extra hours needed should be worked on Thursday and Friday. This suggestion was carried out, the department working one and one-half hours extra on these days. It is the opinion of the chairman that this was agreeable to all parties. The chairman’s interpretation of the “ time and one-half clause” is that extra time is not overtime until 48 hours has been worked in a full week. Three rulings made by the former chairman touch on this question. Case No. 1279, ruling 1094, states “ Forty-eight hours were not worked in the week. Extra payment for overtime is denied.” In Case No. 796, ruling 734, it is ruled that time and one-half shall be paid after 10 o’clock on Saturday morning. It appears there was a doubt in the chairman’s mind whether the men worked 48 hours in that week. In Case No. 575; ruling 503, the former chairman states that the union claims it is not intended that extra pay shall be given for Saturday morning work during the 3 summer months when the regular week is only 45 hours. The agreement reads: “ Overtime work over 48 hours shall be paid for at the rate of time and one-half.” The chairman is of the opinion that the “ time and one-half” for overtime clause is considerably abused by both parties to the agreement and that union members could collect time and one-half in many instances were the cases sent to arbitration. The request for time and one-half payment is denied. Information concerning overtime work and rates for such work have been collected for a number of years and published by the Bureau of Labor Statistics in bulletins covering wages, hours, earnings, and working conditions of employees in the automobile, boot and shoe, cotton goods manufacturing, foundry and machine shop, hosiery and underwear, lumber, men’s clothing, slaughtering and meat pack ing, and woolen and wrorsted goods manufacturing industries in the United States. Overtime in these industries is generally understood as any time worked in excess of the regular standard of hours per day or per week as established by a specified time of beginning work in the morning and of quitting wTork in the afternoon less the regular time off duty for the midday meal. A summary of extra rates of overtime by industries are here pre sented for the last year for which data are available: Automobiles.— In 1925 data were collected from 99 manufacturers of passenger cars, trucks, busses, bodies, and parts of motor vehicles. Of these, 60, or nearly 61 per cent, paid all or part of their wage earners extra for overtime. The extra rates for overtime work on week days were one and one-fifth, one and one-fourth, or one and onehalf times the regular rate, and for work on Sundays and holidays were one and one-fifth, one and one-fourth, one and one-half, or two times the regular rates. The prevailing rate for overtime was one and one-half times the regular rate. Cotton goods manufacturing.— In 1926 data were collected from 151 mills engaged in the manufacture of broad or wide-woven cotton goods of varying weight and quality. Only 11, or 7 per cent, of the mills paid extra for overtime, The prevailing rate was one and one- PRO DU CTIO N 91 half times the regular rate. The other rates were one and threetwentieths, or one and one-fourth times the regular rate. Foundries and machine shops.— In 1927 data were collected from 417 foundries and 526 machine shops. Of these, 244 foundries and 404 machine shops paid extra for overtime. The prevailing rate was one and one-half times the regular rate. The other rates were one and three-twentieths, one and one-fourth, and two times the regular rate. The double rate, except in a very few establishments, was for work on Sundays and holidays. Hosiery and underwear.— In 1926, when the study of this industry was made, 18 of the 105 hosiery and 5 of the 85 underwear mills paid extra for overtime. The prevailing rate was one and one-half times the regular rate. Other rates were 5 or 10 cents extra per hour, 35 cents, or $1 per day extra, one and one-fourth or one and twentyseven one-hundredths times the regular rate. Lumber.— In 1925 only 17 of 299 mills included in the study paid extra for overtime. Four mills paid one and one-fourth and 13 mills paid one and one-half times the regular rate for overtime. Men’s clothing.— In the 1926 study 32 of the 198 establishments covered in that year paid extra for overtime. The rates were one and one-fourth, or one and one-half times the regular rate, or $1.50 or $1.61 per hour. The prevailing rate was one and one-half times the regular rate for overtime. Slaughtering and meat packing.— In 1927, when the study of this industry was made, 52 plants, or 60 per cent of the 86 plants covered, paid one and one-half times the regular rate for overtime. Woolen and worsted.— In the 1926 study of this industry 52 of the 112 mills covered in that year paid extra for overtime. Thirtynine paid one and one-half times, nine paid one and one-fourth times, two paid one and one-tenth times the regular rate, and the other two paid various rates in excess of the regular rates, the rates vary ing in different departments. Production ABLE 12 shows the production, in number of pairs of shoes, in the United States and in each of nine States in which the manufac ture of shoes was of material importance in 1914, 1919, 1921, and from 1923 to 1928. The 1928 figures are for six months only, or January to June, inclusive, and represent nearly one-half of the total production in 1927. The table also gives for each State the per cent that its production was of the total in each of these years. Production in the industry in the United States as a whole in creased from 292,666,468 pairs in 1914 to 331,224,628 in 1919, dropped to 286,771,101 in 1921, and then increased to 351,114,273 pairs in 1924, the year of maximum production in this country. Production by years has not varied greatly since 1923. It ranged from 313,230,157 pairs in 1924 to 343,605,905 in 1927. In 1925 it was 323,553,055 or only 960,640 pairs less than in 1926. Production in 1914 in the nine States included in the table ranged from 8,292,659 pairs in Illinois to 115,224,383 pairs in Massachusetts. Illinois produced 2.8 per cent and Massachusetts 39.4 per cent of the total in that year. In 1927, the last year for which complete annual figures are available, production by States ranged from 16,085,064 T 92 C O N D ITIO N S IN SHOE IN D U S T R Y IN H A V E R H IL L pairs in Maine to 78,182,264 pairs in Massachusetts, percentages of total production being 22.8 in Massachusetts, 22 in New York, 14 in Missouri, 7.6 in Illinois, 5.5 in New Hampshire and in Wisconsin, 5.1 in Pennsylvania, 4.8 in Ohio, and 4.7 in Maine. Production by States in number of pairs of shoes in each of the specified years from 1914 to 1927 is shown graphically by the chart immediately following Table 12. Between 1914 and 1927 production in Massachusetts decreased 37,042,119 pairs or 32 per cent; in New York, increased 36,889,110 pairs or 95 per cent; in Missouri, increased 27,281,283 pairs or 131 per cent; in New Hampshire, decreased 5,708,115 pairs or 23 per cent; in Pennsylvania, decreased 4,574,343 pairs or 21 per cent; in Maine, increased 375,787 pairs or 2 per cent; in Ohio, decreased 1,515,632 pairs or 8 per cent; in Wisconsin, increased 10,577,686 pairs or 126 per cent; and in Illinois, increased 17,795,732 pairs or 215 per cent. In 1927, production in all States, or in the industry, was 50,939,437 pairs or 17 per cent more than in 1914. T able 12. — Production of boots and shoes in specified years, by States 24011' [Computed from reports of United States Department of Commerce] NUMBER OF PAIRS State 1914 Total___________________ 1921 1923 1924 1925 1926 1927 1928 1 115,224,383 38,798,158 20,868,352 24,659,886 22,184, 502 15, 709, 277 17,973, 441 8,382,882 8,292,659 20,572,928 116,992,912 62,773,081 26,362,397 22,700,694 23,617,362 19,175,387 17,870,148 11,142, 456 10,638,609 19,951, 582 85,819, 586 63, 696,324 27,423,938 14,631,976 19,195,193 16,515,142 16,835,245 10,407,318 12,295,206 19,951,173 89, 517, 331 75, 821, 623 2 64, 695, 276 21,718,392 21, 533,047 17,261, 279 17,243, 519 17,150,437 (3) 26,173, 369 73, 529,432 69,852, 563 2 64,194,649 18, 538, 973 19,265, 276 15,031,349 14,093,480 15,826, 740 0 22,897,695 72,266,595 72,595,033 2 72,466,613 18,296,422 17,309,661 16,717,333 15,621,439 16,901,651 (3) 21,378,308 72,851,015 72,025,470 » 73,168, 731 19,130, 211 15,617, 560 16,487,294 14,853, 755 17,536, 582 (3) 22,843,077 78,182, 264 75,687, 268 48,149, 635 18,951, 771 17,610,159 16,085, 064 16,457, 809 18,960, 568 26,088, 391 27,432, 976 39,660,707 35,147,548 24,122,717 10,285,426 8,629,246 8, 726, 772 7,339,086 8,440,416 12,649,778 13,476,509 292,666,468 331,224,628 286, 771,101 351,114,273 313, 230,157 323,553,055 324, 513,695 343,605,905 168,478, 205 22.3 22.4 2 22.4 5.7 5.3 5.2 4.8 5.2 22.4 22.2 2 22.5 5.9 4.8 5.1 4.6 5. 4 7.0 22.8 22.0 14.0 5.5 5.1 4.7 4.8 5.5 7.6 8.0 23.5 20.9 14.3 6.1 5.1 5.2 4.4 5.0 7.5 8.0 100.0 100.0 100.0 PER CENT OF TOTAL Massachusetts________________ New York________ __ ______ Missouri______________________ New Hampshire_____ ________ Pennsylvania_________________ M aine..____ __________________ Ohio__________ __ ___ Wisconsin---------------- --------------Illinois------------------------------------All other States_______________ Total___________________ 39.4 13.3 7.1 8.4 7.6 5.4 6.1 2.9 2.8 7.0 35.3 19.0 8.0 6.9 7.1 5.8 5.4 3.4 3.2 6.0 30.0 22.2 9.6 5.1 6.7 5.8 5.9 3.6 4.3 7.0 100.0 100.0 100.0 1 First 6 months only. 25.5 21.6 2 18.4 6.2 6.1 4.9 4.9 4.9 0 7.5 100.0 ’ * Including Illinois. 23.5 22.3 2 20.5 5.9 6.2 4.8 4.5 5.1 (3) 7.3 100.0 (3) 6.6 100.0 (3) PRODUCTION Massachusetts________________ New York_______ _____________ Missouri___________ __________ New Hampshire. _ _ ________ Pennsylvania_________________ Maine___________________ _____ Ohio____ ______________ ______ Wisconsin__________________ _ Illinois_______________________ All other States_______________ 1919 3 Included with Missouri. CO CO [ millionsof 1 PRS. 125 75 OF B O O TS & S H 0 E 5 . BV ST A T E S MILLIONS OF 12?. PRS _____ I I 100 ILi 75 1 i i — i H « = f 0 *14 *19 '« *14*19 *2* *9 *24 *2? *26 *27 1 Mfir.:. .1 25 '14 *19 ’2 1 *2 5 ’at *25 *26 *27 wid. r- .J rex: ’14 *19 *21 ’25 *24 '2> *2fr *27 1 •? 125 dTH&RS\ 100 75 75 IN 100 INDUSTRY l i u i m i i f\ w, '14 *19 *21 *25'24 *25 *2**27 1 . . SHOE 25 50 IN r n 50 ' CONDITIONS too PRO D U CTIO N I ! 25 zs o i l i u m ’14*13 ’21 '23*21 *25*26'27 i i i i i i i i ■ *14 *19*21 *23 *24*25 *2**27 *14*19*21 ’2V24*25*26’27 ■ ■ m u ■ n *14 *19 *21 1 im r m i *27 ■i4 *i9 ’a 'n ’» 'zs % 'zr 0 H AVERHILL 50 /50 v 95 PRODUCTION The number of pairs of men’s, boys’ and youths’ , women’s, misses’ and children’s, and all other shoes, and the total number produced in each month from January, 1924, to June, 1928, are presented in Table 13 for the United States and also for Massachusetts. The table also gives the per cent that the number of each kind of shoes was of the total in each year. In 1924 the production of men’s shoes in the United States was 27 per cent of the production of all shoes; that of boys’ and youths’ shoes, 6.5 per cent; of women’s shoes, 33.2 per cent; of misses’ and children’s shoes, 11.4 per cent; and of all other shoes than those specified, 21.9 per cent. In 1924, 1925, 1926, and 1927 production was usually higher in March and April and in September and October than in other months. The production of men’s shoes in Massachusetts decreased from 31.6 per cent of the total shoes produced in the State in 1924 to 26.7 per cent of the total in 1927; that of boys’ and youths’ shoes, decreased from 4.1 per cent in 1924 to 4 per cent in 1927; of women’s shoes, in creased from 39.8 per cent in 1924 to 43.8 per cent in 1927; of misses’ and children’s shoes, increased from 7 per cent in 1924 to 8.5 per cent in 1927; and of all other shoes than those described, decreased from 17.5 per cent in 1924 to 17.1 per cent in 1927. Production was higher in Massachusetts in March and April and in September and October, 1924, and in March and April and in August, Septem ber, and October, 1925, 1926, and 1927, than in other months. Wo men’s shoes increased from 29,247,005 pairs in 1924 to 34,226,555 in 1927; men’s shoes decreased from 23,243,969 pairs in 1924 to 20,840,782 in 1927; and misses’ and children’s shoes increased from 5,174,833 in 1924 to 6,656,899 pairs in 1927. T a b le 13 *— Production of shoes in United States and in Massachusetts, January, 1924, to June, 1928, by months [Computed from reports of United States Department of Commerce] Number of pairs Year and month Men’s Boys’ and youths’ Women’s Misses’ and children’s All others Total UNITED STATES 1924: January_______ ____ February___ _____ March_____________ April_______________ M ay_______ ____ June_______________ July________________ August_____________ September_________ October........... ......... November.-. _____ December__________ 7,869,978 7,344,367 7, 550, 263 6, 723, 044 6,086, 713 5, 646, 670 6,148, 567 7,177, 985 7,592, 349 8,333, 007 6,991, 851 7,198, 063 1,713,841 1,501,174 1,618, 538 1,664,060 1,490, 851 1, 521, 557 1,545, 294 1,798, 377 1,793,012 2,161, 717 1,714, 290 1,750, 813 8,234,385 8,793, 274 9,894,179 9,285,991 8,145,484 7,075, 643 6,910,150 8,718,703 9,951,500 11,107, 746 8,500, 379 7,518, 035 3,315,688 3,296,708 3, 269,422 3,398,107 3,139, 399 2, 696,424 2,344, 017 2,712,456 3,009,460 3,132,313 2, 660, 677 2, 719, 252 5,363,264 5,896,385 6,532,061 6,932, 589 6,377,706 5,523,366 4,441,470 5,065,533 5,369, 551 6,091,215 5,455,014 5,416, 230 26,497,156 26,831,908 28,864,463 28,003,791 25,240,153 22,463,660 21,389,498 25,473,054 27,715,872 30,825,998 25,322, 211 24,602,393 Total................... Per cent of total—_ 84, 662, 857 27.0 20, 273, 524 6.5 104,135,469 33.2 35,693,923 11.4 68,464,384 21.9 313, 230,157 100.0 1925: January...................... February___________ March.. _________ April_____ ________ M ay............................ June........................... July............................. 7,659, 263 7,137,121 7,636,473 7,189, 276 6, 222, 854 6,147, 294 6,748,248 1, 748, 285 1, 642, 794 1, 712, 941 1,997, 900 1, 579,005 1,665,136 1,820,977 7,952,810 8,426,835 9,736, 746 9,396,045 8,059, 003 7,400,287 7,955,137 3,254, 242 3,471,456 3,835,994 3,986,137 3,169, 659 2.735,705 2,824,530 5,462, 779 5,776,785 6,963, 674 6,907,084 6,076, 676 5,500,166 5,409,456 26,077,379 26,454,991 29,885,828 29,476,442 25,107,197 23,448,588 24,758,348 96 T CONDITIONS IN SHOE INDUSTRY IN HAVERHILL able 1 3 .— Production of shoes in United States and in Massachusetts, January, 1924t to June, 1928, by months— Continued Number of pairs Year and month Men’s Boys’ and youths’ Women’s Misses’ and children’s All others Total UNITED STATES— contd. 1925—Continued. August____________ September_________ October____________ November_________ December__________ Total___________ Per cent of total.. 1926: January___ February March____ April______ M ay______ June______ July---------August____ September. October___ November. December. _ Total___________ Per cent of total1927: January... February. March___ April-------M ay_____ June_____ July.......... August. October _ November. December. . Total___________ Per cent of total1928: January. _. February . March___ April_____ M ay_____ June_____ Total____ ____ Per cent of total. 7, 350,227 7,980,956 8, 401, 885 6, 924, 789 7 ,148, 078 1,896,280 1,762, 553 1, 982, 877 1, 576, 306 1, 636,104 9,779,917 10,468, 741 10,743,256 7,621, 426 7, 241, 484 3, 249, 088 3,250,076 3,184, 929 2, 795, 516 2,933, 724 6,210, 500 6,306, 556 6, 742, 548 5, 712, 267 5, 444,199 28,486,012 29, 768,882 31,055,495 24,630, 304 24,403, 589 86, 546, 464 26.7 21,021,158 6.5 104, 781, 687 32.4 38, 691, 056 12.0 72, 512, 690 22.4 323, 553,055 6,855, 325 6, 672, 486 7,447, 678 6, 515,927 5,660, 720 6, 567, 724 6,748, 629 7,977, 881 8, 676,160 8, 522, 724 7, 523, 500 7,474, 874 1,640,195 1,664, 604 1,691, 229 1,530, 261 1,325, 329 1,655, 201 1,769, 198 1,946, 559 2,105, 283 2,015, 299 1, 882, 020 1,885, 366 7, 802,826 8, 683,158 10,328, 821 8,982,814 8,281, 585 8, 622, 378 8,792,153 10,852, 808 11, 207, 624 11,125, 562 8, 295, 898 7,471, 218 3,040,164 3,280, 300 4,004, 962 3, 549, 644 2, 657, 581 2,830, 660 2,663, 912 3,086, 167 3,493, 538 3, 643, 333 3, 240, 788 4, 535,150 5,397,181 6,455, 550 6,058, 492 5, 203, 518 5,364, 717 5,078, 071 5, 782, 848 6,190, 841 6,355,160 5,816, 226 5, 497, 789 23,873, 660 25,697,729 29,928,240 26,637,138 23,128,733 25,040, 680 25,051,963 29,646, 263 31,673,446 31,662,078 26, 758,432 25,415,333 86, 643, 628 26.7 21, 110, 544 6.5 110, 446, 845 34.0 18, 577,135 11.9 67, 735, 543 20.9 324, 513, 695 7, 660, 169 7, 771, 452 8, 507, 537 7, 355, 387 6,927,902 7,426, 260 7,993,824 9,137,328 9,052,176 8,638,477 7,470, 342 7, 387,244 2,088, 982 1,832, 085 2, 214, 859 2,005, 603 1,890, 753 2,282, 819 2,032, 454 2,326, 039 2, 277, 005 1,967, 328 1,580, 472 1, 730, 897 7, 796, 789 8,926,172 10, 438, 283 9, 729, 442 8, 689, 985 9,155, 366 9,383, 271 12,930, 869 12,579, 125 11, 712, 421 7,998, 854 6,918, 289 3, 304, 072 3, 624, 270 4, 111, 400 3, 671, 420 2,989, 254 3,168,186 2,929, 042 3, 645, 051 3, 615,199 3, 213, 402 2, 672, 918 2, 705, 747 4,142, 545 5,138, 287 6,004, 446 5, 627, 620 5,127,946 5,464, 079 5,436, 063 7,021, 243 6,409,430 6,734, 993 6,250, 540 4, 782,492 24,992, 557 27,292,266 31,276, 525 28, 389, 472 25, 625,840 27,496, 710 27,774, 654 35,060, 530 33,932,935 32, 266, 621 25,973,126 23, 524, 669 95, 328,098 27.7 24, 229, 296 7.1 116, 258, 866 33.8 39, 649,961 11.5 68,139, 684 19.8 343, 605,905 7, 743, 786 7,957,776 8,191,240 6,540,970 6,979,968 7,450, 646 2,045, 201 2,104, 349 2,162,471 1,685, 630 1,915, 333 2,061,877 8,968, 015 10, 696, 453 12,429, 871 9,888, 791 9, 389, 352 9,115, 307 3, 264, 905 3, 634, 576 3, 635, 886 3,077,105 2, 733, 799 2,879, 300 4,187, 717 5,235, 264 5,881, 668 5,436, 061 5.408,161 5, 776, 727 26, 209, 624 29, 628,418 32, 301,136 26,628,557 26,426,613 27,283,857 44,864, 386 26.6 11,974,861 7.1 60, 487, 789 35.9 19, 225, 571 11.4 31, 925, 598 18.9 168,478, 205 2, 285,385 2,170,534 2, 291,208 1,992,079 1,678,417 1,401,029 1,703,867 2,105, 333 2,222,440 2,093,642 1,626, 261 1,673, 774 247, 749 237, 542 247, 771 255, 770 224, 717 143,003 213, 238 297, 309 299, 772 330, 236 246, 773 275, 123 2, 269, 259 2,467,883 3,058,189 2,839,149 2, 345,895 1, 832,469 1,858,491 2, 520, 647 3,068,062 3,186,922 2,116, 843 1, 683, 196 544, 228 581,896 561,006 549,399 423, 560 272,135 216,360 314,306 401,782 456, 640 416,032 437,489 773,433 904, 510 1,194,001 1, 282, 280 1,159,451 957,915 969,158 1,044,267 1, 203,181 1, 272, 175 1,194,843 6,120,054 6,362, 365 7,352,175 6,918,677 5,832,040 4,606,551 4,961,114 6, 281,862 7,195, 237 7, 339, 615 5, 600,752 4,958,990 3,019,003 4.1 29, 247,005 39.8 5,174,833 7.0 12, 844, 622 17.5 73, 529,432 100.0 100.0 100.0 100.0 MASSACHUSETTS 1924: January.................. February_________ March____________ April_____________ M ay_____________ June_____________ J u l y ..................... August___________ September_______ October__________ November_______ December________ Total. ................. Per cent of total. 23, 243, S 31.6 100.0 97 PROD U CTION T able 13.— Production of shoes in United States and in Massachusetts, January, 1924, to June, 1928, by months— Continued Number of pairs Year and month Men’s Boys’ and youths’ Women’s Misses’ and children’s All others Total MASS ACHUSETTS— COntd. 1925: January____________ February................ March_____________ April______________ M ay_______________ June_______________ July_______________ August____________ September_________ October____________ November_________ December__________ 2,139,920 1, 972,944 2,154,892 1, 795, 570 1, 544,319 1,456, 755 1,875,916 2, 267,491 2, 159,436 2,059, 235 1, 687, 378 1, 676,298 260,458 239, 576 256,856 212,086 144,416 142,432 178,989 259, 932 274,039 300,819 184,841 220,029 2,088,062 2,364,814 2,861,369 2, 598,243 2,095,046 1, 799,777 2,233,142 2,814,273 3,138,015 2,698,024 1,955, 111 1,692,119 420,829 505,422 655,824 612,099 383, 237 206, 580 288,164 416,055 419,627 407, 779 349,490 361,984 838, 818 902.207 1, 208, 248 1,134,436 1,080,142 1,036,974 1,066,895 1,247,576 1,392,890 1, 376,063 1,180,324 972,310 5, 748,087 5,984.963 7,137,189 6,352,434 5, 247,160 4,642, 518 5,643,106 7,005,327 7,384,007 6,841,920 5,357,144 4,922,740 Total____________ Per cent of total... 22, 790,154 31.5 2,674,473 3.7 28,337,995 39.2 5,027,090 7.0 13,436,883 18.6 72,266, 595 1926: January____________ February__________ March_____________ April______________ M ay_______________ June__________ ____ July-----------------------August------------------September_________ October____________ November_________ December__________ 1, 803, 343 1,730,419 2, 049,310 1, 568,696 1,420,162 1, 575,964 1, 691,978 1,987, 657 2,082,918 1, 879,359 1,667,376 1, 543, 750 259, 016 235, 543 276, 820 223,640 184, 272 182,439 205,008 275, 809 287,047 281,368 293,083 254,494 2,085, 543 2,584,040 3,191,845 2,450,028 2,577,951 2,446, 737 2,379,740 3,036,609 3,159,499 3,013, 213 2,039,173 1,556,358 434,055 485, 269 719, 883 612, 568 460, 393 398,693 364,074 494,332 560,029 608,120 631,989 560,950 509, 830 758,877 1,058, 748 945,408 919,774 970,959 1,028,545 1,206,338 1, 263,622 1,328,480 1,279,284 770, 588 5,091, 787 5, 794,148 7, 296, 606 5,800,340 5, 562, 552 5,574, 792 5, 669,345 7,000, 745 7,353,115 7,110, 540 5,910,905 4, 686,140 Total____________ Per cent of total. 21,000, 932 28.8 2, 958, 539 4.1 30,520, 736 41.9 1,330,355 8.7 12,040,453 16.5 72,851,015 1927: January____________ February__________ March________ ____ April______________ M ay_______________ June_______________ July_______________ August____________ September_________ October____________ November_________ December__________ 1, 681,431 1, 698, 339 1,987, 341 1,664, 670 1, 565, 836 1,752, 271 1, 663, 822 2,197, 943 2,029, 061 1, 752, 556 1, 480. 251 1, 367, 261 294, 579 230, 723 259,112 236, 504 218, 090 216, 770 272, 291 329,863 298, 463 289, 386 275, 522 172, 086 2,023,075 2,441,135 3,218,481 3,039,029 2,737,140 2,433,256 2,720, 623 4,030,168 4,041,407 3,718, 537 2,215,467 1, 608, 237 568,436 600, 552 732, 272 613,180 488,986 440,206 481, 636 685,499 616, 226 589, 235 451,955 388, 716 574, 860 840,064 1,025, 094 970, 241 1,017, 743 1,039, 527 1,141,960 1,483, 230 1,487,170 1, 505,885 1,436, 590 842, 275 5,142,381 5,810,813 7, 222,300 6, 523, 624 6,027, 795 5,882,030 6, 280,332 8, 726, 703 8,472, 327 7,855, 599 5,859, 785 4,378, 575 Total____________ Per cent of to ta l- 20, 840, 782 26.7 3,093, 389 4.0 34,226, 555 43.8 i, 656, 899 8.5 1928: January___________ February_____ ____ March_____________ April______________ M ay________ _____ _ June_________ ____ _ 1, 578,099 1, 737, 772 1,859, 764 1,454, 641 1,463,471 1, 553, 690 328,805 314, 722 351,371 241, 708 214, 233 258,347 2, 606,435 3, 580, 635 4,341,941 3, 239, 247 3,055,469 2, 563,103 630,043 684, 808 724,910 568, 028 407, 553 368,983 609, 054 925,454 1,129,403 940, 684 936, 679 991, 655 5, 752,436 7, 243,391 8,407,389 6,444,308 6,077,405 5, 735, 778 Total____________ Per cent of total... 9,647,437 24.3 1,709,186 4.3 19,386,830 48.9 3,384,325 8.5 5, 532,929 14.0 39, 660,707 13, 364, 6 100.0 100.0 78,182,264 100.0 100.0 Table 14 shows the number of pairs of shoes that were (according to information collected and furnished by the Haverhill Chamber of Commerce) shipped from Haverhill each month from September, 1925, to September, 1928. Figures are not available for any month prior to September, 1925. (See chart on p. 98.) 98 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL The shoe manufacturers in Haverhill produced 17,781,579 pairs in 1914; 21,830,680 pairs in 1919; and 13,624,549 pairs in 1921, and, as shown in the table, shipped 15,493,572 pairs from the city in 1926 and 14,202,612 pairs in 1927, or a larger number in each of the years 1926 and 1927 than was produced in 1921. 100 0 *5 or PAIRS NUMBERS OF PAIRS OF SHOES SHIPPED, BY MONTHS. 10005 Of PAIR5 More pairs of shoes were shipped in September in each year than in any other month, and the 1,945,368 pairs for September, 1928, surpassed all previous monthly figures, followed next in order by 1,870,740 pairs in August, 1928. These figures indicate a decided upward trend in the shoe industry in 1928, especially since June. 99 COST OP PRODUCING AND SELLING SHOES T able 14.— Number of pairs of shoes shipped from Haverhillt September, 1925, to September, 1928, b?/ months Month January_______________________________ February ___ _____ _________ March.. ___ ____________________ April__________________________ _ _ _ M ay_________ _____ _________ ________ June__ _______________________________ July. _______________________________ August________________________________ September ___________________________ October. _______ _____________________ November______________________ _____ December. ______ _______ ____________ _ Total __________ ________ _______ 1925 1926 1927 1,643,472 1,309,644 847, 512 789, 696 942, 084 1, 215,936 1,665,828 1, 509,120 1,398, 312 1,251,900 1,176, 552 1,432, 512 1, 750, 788 1,483, 380 1,017, 756 649,404 906,660 1,153, 800 1, 530,648 1, 389,708 1,126, 224 964, 548 943, 740 1, 518, 372 1, 665,432 1,490,652 945,468 567, 360 15,493, 572 14, 202,612 1928 741,240 1,288, 764 1,771,848 1,088,820 931,032 962,928 1,147,464 1,870, 740 1,945,368 Cost of Producing and Selling Shoes HE figures used in arriving at the various items of cost in the manufacture and sale of shoes were obtained directly from the records of 23 of the important shoe factories in Haverhill and from their own copies of Federal income tax returns for each of the years (1925,1926, and 1927) in which each company was engaged in the manufacture and sale of shoes. The total number of pairs of shoes produced and sold in each year by each company was also obtained. The principal items of cost are materials, consisting of upper leather, sole leather, lining, wood heels, and findings; wages or earn ings of factory labor, and salaries of officials, clerks, and the sales force. When available, separate material costs were obtained for upper leather and linings, for soles, and for all other materials, and figures for each are presented in Table 15. The per cent which each item of cost is of the net amount received for the shoes and the cost per 100 pairs of shoes for each specified item, based on the number of pairs of shoes produced and sold and the expense incurred, are presented in the table. Labor cost varies with the style of the shoe. A fancy novelty is much more expensive in labor cost per 100 pairs than a plain shoe, the cost increasing with the increase in the number of “ cut outs,” straps, etc., due to the increase in the number of operations. Cost of materials per 100 pairs of shoes varies with the style. A change in style which increases or decreases the quantity or, as in some cases, the quality of leather or other materials means a change in the cost of materials per 100 pairs. The cost also varies with the fluctuation in the price of materials. A large manufacturer reported that his profits prior to 1928 were largely due to the advantageous purchase of leather in large quantities when the price of materials was low. He claimed that the advance in the price of leather in 1928 eliminated this source of profit and that it was necessary for him, in order to continue in business in Haverhill at a profit, to get a reduc tion in wage rates. He made this request of the union and was refused. He closed his factory. Certain overhead expenses, such as rents, fuel, light and power, taxes, and insurance, usually continue with little change in amount T 100 CONDITIONS IN SHOE INDUSTRY IN H AVERHILL annually regardless of the variation in the number of pairs of shoes produced from year to year. Cost of each of these items per 100 pairs of shoes decreased in years in which there was an increase in production and increased in years in which there was a decrease in production. This point is clearly shown by factory No. 7, in which the number of pairs of shoes produced in 1927 was 25 per cent more and rent was 10 per cent more than in 1925. The cost per 100 pairs for rent decreased from $1.63 in 1925 to $1.49 in 1927. The cost per 100 pairs of shoes in salaries of officials in this factory increased from $3.03 in 1925 to $9.03 in 1927, or nearly 200 per cent, due to an increase of nearly 275 per cent in salaries as compared with only 25 per cent increase in production. This cost in factory No. 2 was $7.84 per 100 pairs in 1925, $5.87 in 1926, and $25.45 in 1927. In this factory production in 1927 was 10 per cent less and salaries of officials about 195 per cent more than in 1925. T 15. — Per cent that specified items of cost of production constitute of net sales, and cost per 100 pairs of shoes, by establishment and item of cost, 1925, 1926, and 1927 able Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 NO. 1— w o m e n ’ s 1926 1927 Cost per 100 pairs 1925 1926 $44.86 48. 82 77.32 11.86 2.06 2.61 .30 1.88 1.77 1. 73 1.27 1.63 .97 .09 .31 .20 $58.47 45.15 97. 27 4.53 2.61 1.68 . 15 1.09 2.42 2. 55 2.08 1.96 .77 1.89 .48 .32 .54 .81 .68 5.45 . 10 .95 1.36 1927 m’kay Leather (upper and lining)................................................. Other shoe material__________________ ______________ Wages of factory labor ___ ___ Salaries of officials________________ __________________ Salaries of clerks_____________________________________ Salaries and commissions, sales force _________ _____ Expenses, sales force__________________ _____ ______ Rent of factory and office_____________________________ Rent and royalties on machines _____________________ Lasts, patterns, and dies.. ________ . ____________ Maintenance and repair______________________________ Fuel, light and power____ _____________ ______ _____ Freight and delivery e x p e n s e _________________ ___________ Interest.._______ _______ ____________________________ Insurance. _ ________________ ____________ Fares _ _ _ ________________________________ Moving expense .. __________________________________ Bad accounts _ . ________________________ ______ Depreciation _ _________________________ . . ______ All o t h e r e x p e n s e s ____ __________________________ __________ Net gain _ _ ______________________________ Net loss______ ___________ - - - - - ______ _______________ 21.9 23.8 37.7 5.8 1.0 1.3 .1 .9 .9 .8 .6 .8 .5 0) .2 .1 .3 .4 .3 2.7 26.0 20.0 43. 2 2.0 1.2 .7 0) .5 1.1 1.1 .9 .9 .3 .8 .2 .1 0) .4 .6 25.3 23.9 38.3 1.1 .9 .5 .3 .4 .9 1.5 .4 .6 .4 .4 .2 .1 .3 2.1 .3 .5 1.6 .3 $59. 26 56.03 89.91 2.69 2.07 1.06 .71 .93 2.01 3.46 1.05 1.42 .99 .91 .47 .20 .73 5.04 .68 1.24 3.77 .61 NO. 2— WOMEN’ S TURN Leather and other shoe material...____ ______ _______ Wages of factory labor and office clerks.______________ Salaries of officials ............. ................................. ............... Salaries and commissions, sales force- _______________ Expenses, sales force _________ ______ _______________ Rent and royalties on machines_____________ - ________ Lasts, patterns, and dies___ ____ ____ _________ ____ Maintenance and repair______________________________ R e n t , fu e l, lig h t and p o w e r ________________________________ Freight and delivery expense_________________________ Interest._____ _______________________________________ Insurance. _____ _____________________________ Taxes _________________________________ Depreciation_____________________ ______ ______ .. All other expenses________________ ______________ . Net erain.......................................... ....................................... i Less than one-half of 1 per cent. 46.6 39.2 1.8 5.4 .3 .5 3.2 .6 1.5 .3 .2 .2 .2 .3 .7 .9 45.5 40.5 1.6 4.2 .1 .5 1.8 .5 1.4 .2 .2 .2 .1 .3 .5 4.0 46.7 38.6 6.5 .2 .3 .7 .9 .3 1.8 .3 .6 .2 .1 .5 .7 8.1 205.41 172. 67 7.84 23. 62 1.24 2.38 14.13 2.64 6.49 1.12 .69 1.07 .88 1. 35 3.00 3.86 167.99 149. 55 5.87 15. 65 .36 1.79 6. 76 1.72 5.11 .66 .83 .66 .48 1.10 1.86 14. 59 182.34 150.85 25.45 .70 1.08 2.83 3.67 1.18 6.89 1.23 2.45 .74 .22 2.08 2.77 31.44 101 COST O F PRO D U CIN G AN D SE L LIN G SH OES 1 5 . — Per cent that specified items of cost of production constitute of net sales, and cost per 100 pairs of shoes, by establishment and item of cost, 1925, 1926, and 1927— Continued T a b le Establishment number, kmd of shoes, and item of expense Per cent that specified items constitute of net sales 1925 1926- Cost per 100 pairs 1927 1925 1926 40.7 33.6 5.0 .7 .7 1.0 .6 1.1 .6 (3) (3) _ .4 (3) (3) .2 12.0 .6 4.9 $82. 57 89.41 8.17 (2) 3.31 1. 27 .47 (2) .56 (2) 2.11 .49 .17 .07 .03 .17 .12 .99 5. 33 $81. 33 71.04 8. 50 .68 6.17 3.11 .55 .60 1. 53 .45 .66 .54 .23 .70 .09 .03 .80 3.91 4.44 1927 NO. 3— WOMEN’ S MEDIUM FINE M’ KAY 43.9 44.6 Leather and other shoe material— _________________ 48.3 38.3 Wages of factory labor_____ __ _______ ________ __ 4.4 4.6 Salaries of o f f i c i a ls ._ _______ _______________ _ . . .4 Salaries of clerks____ _________ _____ (2) 3.3 1.8 Salaries and commissions, sales force _ _ ____ ____ 1.7 .7 Expenses, sales force... ______ _______ . .3 .3 Rent of factory and office___ _____________________ .3 Rent and royalties on machines_____ ______ - . . . (2) .3 .8 Lasts, patterns, and dies__ _ _______ ____ _ ____ .2 Maintenance and repair... __________ ____ __ (2) .4 Fuel, light, and power_________ __________ __ ___ 4 .1 Freight ________ __ and delivery.3expense.3 .1 .1 Interest... _____________________ ______ _ _____ . . .4 Insurance, ........... ............... -..... 0) .1 T axes... _____ _ __________ ________ . . . ______ 0) .1 Bad accounts____ ________ . . . _. - . . ._ 0) .1 .4 Depreciation . ___ ___________________ ____ 2.1 .5 All other expenses. __ _ ________ ______ __ 2.9 2.4 Net gain... __________ . . . Net loss. ........... ....... . . . $77.97 64. 36 9. 50 1. 37 1.40 2.01 1.15 2. 20 1.17 (3) (3) .67 (3) (3) .34 23. 01 1.11 9.46 3. 57 1.9 NO. 4— MISSES’ AND CHILDREN’ S M’ KAY Leather and other shoe material______________________ Wages of factory labor_______ _ . _ ____________ __ Salaries of officials................. ........... ......... . ___ Salaries of clerks____________________ . _ . _ . .. Salaries and commissions, sales force Expenses, sales force___ . . . __ _______ _______ Rent, fuel, light, and power _____ _ ___ Rent and royalties on machines ... Lasts, patterns, and dies_________________ _____ ____ Maintenance and repair._______________________ ____ Freight and delivery expense_________________________ Interest___ _____ __________ ________ ____________ Insurance_________________________ _______ ________ Taxes__________ ______________ _______________ ____ Moving expense________ _. . . _ _____ Bad accounts_____ _______________________ _______ _ Depreciation_________________________________________ All other expenses ______ __________________ _____ Net gain____ _______ ________________________ _____ NO. 49.7 34.7 1.5 .6 (2) .2 1.7 1.2 .5 .6 .6 .3 .6 0) (2) .5 .1 7.2 43.4 35.7 .8 .7 .9 (2) 1. 5 1.3 .5 .3 .7 .6 .4 .2 .4 1.3 .3 1.0 9.9 49.1 30.0 1.0 .8 .4 (2) 1.6 1.3 .4 .4 .6 .3 .5 .3 48.6 35.1 (5) .9 3.0 1.2 1.1 .8 .5 .3 .3 .3 .2 .5 4.1 .5 1.2 1.4 45.3 38.4 (5) 1.0 (2) .6 1.7 1.0 1.0 .3 .3 64. 20 44. 89 1.92 .77 1.1 .3 .1 9.3 (2) .26 2. 25 1. 53 .62 .83 .82 .34 .72 .01 (2) .61 . 15 9. 33 53. 86 44. 27 1.00 .85 1.09 (2) 1.90 1. 57 .62 .36 .87 .74 .55 .28 .48 1.67 .41 1.21 12. 26 59.88 36. 56 1. 22 .92 .49 (2) 2.01 1.64 .43 .45 .71 .41 .63 .31 1.28 .42 . 16 11.39 5—WOMEN’ S AND MISSES’ M ’ KAY Leather and other shoe material ____ __________ _____ Wages of factory labor___ ___________________________ Salaries of officials.______ ______________ ____________ Salaries of clerks__________ _ ___________________ Salaries and commissions, sales force ________________ _____________ ______ __ ____ Expenses, sales force Rent of factory and office___ _ _______________ . . . Rents and royalties on machines ____________________ Lasts, patterns, and dies_____________________________ Maintenance and repair______________________________ Fuel, light, and power_____ _ ___________ _______ 1>......... Freight and delivery expenses___________ ____ ______ J---------Interest________ ____ __________________ ______ ______ Insurance______________ _____________________________ Taxes____ __________ ___________________________ ____ Bad accounts_______ ____ _______ . . . _______ ___ Depreciation____ _______ _________________ ____ _____ All other expenses________ _____ . _____________ ._ Net gain________ _____________ ____ __ . . . ____ Net loss____ _____ ____ ____________________ _________ 1 Less than one-half of 1 per cent. 2 None. 3 Included in “ All other expenses.” 0) .2 .7 5.9 .6 1.2 17.3 4 Light only. 6 Officials drew no salary. 84. 37 60. 90 (5) 1. 50 5.17 2.02 1. 82 1. 35 .85 .50 .56 .59 .34 .92 7.09 .94 2.16 2. 36 81. 58 69.12 (5) 1. 72 (2) 1.02 2.98 1.73 1.72 .63 .51 .06 .32 1.29 10. 56 1.08 2.16 31. 05 102 CONDITIONS IN SHOE INDUSTRY IN HAVERHILL . 15 — P e r cent that specified items o f cost o f production constitute o f net sales, and cost per 100 pairs o f shoes, by establishment and item o f cost, 1925, 1926, and 1927— C on tin u ed T a b le Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 Cost per 100 pairs 1926 1926 1927 NO. 6— WOMEN'S M’ RAY Leather and other shoe material............ . Wages of factory labor and office clerks.. Salaries of officials___________ __________ Salaries and commissions, sales force___ Expenses, sales force___________________ Rent of factory and office______________ Rent and royalties on machines.............. Lasts, patterns, and dies_______________ Maintenance and repair........... ................. Fuel, light, and power_________________ Freight and delivery expense__________ Insurance_____________________________ Taxes_________________________________ Bad debts________________________ ____ _ Depreciation___________________________ All other expenses_____________________ Net gain_____________ _________________ $106.88 85.38 1.07 3.67 48.1 38.4 .5 1.7 .4 .4 .7 1.00 .90 1. 67 2.73 .76 1.17 .60 .34 1.2 .3 .5 .3 .2 .10 0) .7 0) .3 1.58 .08 .78 13. 58 6.1 NO. 7— WOMEN’ S M ’ KAY Leather (uppers, linings)_____________ _____ _____ Leather (soles)__________________ _____ _____ _____ Other shoe material________________ _______ _____ Wages of factory labor__________________ ________ Salaries of officials________________________________ Salaries of clerks____________________________ ____ Salaries, commissions, and expenses, sales force____ Rent of factory and office_________________________ Rent and royalties on machines_________ ________ Lasts, patterns, and dies--------------------------------------Maintenance and repair__________________________ Fuel, light, and power____________________________ Freight. ____________ ______________________ _____ Insurance___ _______ _____________________________ Taxes___ ______ _________________________________ All other expenses_____________________________ 27.4 25.8 12.1 37.0 1.3 15.6 38.5 3.1 .7 2.4 .5 8.8 1.1 1.2 1.2 1.0 .4 .3 .2 8.8 1.6 1.2 1.2 1.4 1.0 26.5 9.5 13.1 36.1 3.6 1.0 2.2 .6 1.1 1.1 .5 .4 .3 .3 $63.03 20.21 27. 83 84. 80 3. 03 2. 50 7.11 1.63 2. 86 2. 65 2. 37 .95 .80 .53 .63 1.80 $63. 28 21.48 38.17 94. 35 3.86 3. 06 5. 86 1.10 2. 95 3. 51 2. 50 1.11 1.00 .63 .61 2.23 65. 62 23.58 32.45 89. 50 9. 03 2. 60 5. 56 1.49 2. 73 2. 65 1.43 1.13 .81 .59 .64 1.99 NO. 8— W O M EN’ S M’ KAY SLIPPERS AND PUMPS 75. 33 54.04 144.44 6.99 2.81 26.0 18.6 39.5 2.4 Leather (uppers and linings)_________ Other shoe material________ _________ Wages of factory labor_______________ Salaries of officials._______ ___________ Salaries of clerks_____________________ Salaries and commissions, sales force.. Expenses, sales force and advertising. Rent, fuel, light, and power_________ Rent and royalties on machines_____ Lasts, patterns, and dies------------------Maintenance and repair_____________ Interest_____________________________ Insurance___________________________ Taxes_______________________________ Depreciation________________________ All other expenses___________________ Net gain------------------------------------------Net loss_____ ________________________ 1.0 .02 0) 1.4 4.11 3.19 3. 35 8.07 1.1 1.2 2.8 .2 .66 .3 .79 .47 .16 .24 6.54 8.73 .2 .1 .1 2.3 3.0 NO. 9— WOMEN’ S M ’ KAY Leather and other shoe material_______________ Wages of factory labor_________________________ Salaries of officials_____________________________ Salaries of clerks_______________________________ Salaries, commissions, and expenses, sales force.. Rent of factory and office______________________ Rent and royalties on machines________________ Lasts, patterns, and dies_______________________ Maintenance and repair_______________________ Fuel, light, and power--------------------------------------Freight................. .......................... ............................ i Less than one-half of 1 per cent. 50.5 40.0 1.3 .7 .7 .7 0) .7 .4 46.9 43.2 .3 .7 .4 .4 .2 .8 49.9 37.5 .5 122.46 97.04 3.20 1.68 1.62 1.70 118. 39 108.95 .83 1.88 1.96 1.13 .6 1.74 .99 .57 .85 .13 .98 .44 1.0 1.2 .4 (I). i .4 .2 .12 .10 138.77 104. 34 1.35 2.91 3. 22 2.43 2.56 1.70 .71 1.05 1.33 103 COST OF PRODUCING AND SELLING SHOES T . 15 — P er cent that specified items o f cost o f production constitute o f net sales, and cost per 100 pairs o f shoes, by establishment and item o f cost, 1925, 1926, and 1927— C on tin u ed able Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1926 no. 9— w o m e n ’ s m ’k a y — 1927 Cost per 100 pairs 1925 1926 $0. 64 .53 $0.73 .27 .32 .65 8.41 12.98 $0.70 .54 126.71 36.88 125.95 11.40 10.14 13.15 3.22 3.01 2. 55 6. 64 1.74 1.83 .57 1. 23 .53 .39 .27 136.39 24.48 126.37 1.20 1.49 3.60 continued Interest............... . Insurance...... .......... Taxes_____________ Depreciation______ All other expenses.. Net gain__________ 0.3 0.3 0.3 .2 .1 .1 .2 .1 .3 2.4 4.5 .3 3.3 5.1 .3 .4 .7 5.0 .22 .64 5. 86 10.89 .86 1.18 1.94 13.95 NO. 10— WOMEN’S TURN SLIPPERS AND PUMPS Leather________ ___ _____ __________ Other shoe material_____ ___________ Wages of factory labor______________ Salaries of officials. ______ ___________ Salaries of clerks____________________ Salaries and commissions, sales force _ Expenses, sales force. _______________ Rent of factory and office____________ Rent and royalties on machines_____ Lasts, patterns, and dies____________ Maintenance and repairs____________ Fuel, light, and power__ ____ ______ Freight_____________________________ Interest_____________________ ____ _ Insurance___________________________ Taxes________ ____ _________________ Bad accounts_______________________ Depreciation________________________ All other expenses___________________ Net gain_________________ ____ _____ Net loss______ ________________ _____ 36.0 36.0 10.5 35.8 3.2 2.9 3.7 38.6 6.9 35.8 3.5 135.08 32.41 146. 58 4.3 .5 1.0 12.65 2.08 3.36 2.41 10. 93 1.72 2.51 1. 47 .78 .77 .65 2.85 1. 88 3. 58 1.2 7.71 2.8 1.0 2.9 .5 .7 .4 .7 1.9 .5 .5 .8 3.2 .3 .6 .2 .3 .6 .3 .2 .2 .2 .2 .2 .1 .1 .1 .3 .7 .5 (2) .4 10.01 11.02 2. 34 1.80 12.22 10.01 15.31 1.93 3.56 3.00 11.20 1.04 2.21 1.21 2.04 .59 .48 (2) 4.12 NO. 11— WOMEN’ S M’ KAY Leather and other shoe material________ Wages of factory labor and office clerks.. Salaries of officials—. .................................. Salaries and commissions, sales force___ Expenses, sales force___________________ Rent of factory and office______________ Rent and royalties on machines________ Lasts, patterns, and dies_______________ Maintenance and repair_______________ Fuel, light, and power_________________ Freight and delivery expense__________ Interest______ _______ _________________ Insurance______________________________ Taxes____________ _____ _______________ Bad accounts. _________________________ Depreciation. ______ ___________________ All other expenses_____________________ Net gain_______________________________ 76.99 80.60 3.46 .26 .75 .41 (2) .96 .03 .15 .85 .07 82.12 71.01 6.74 .4 4.86 .5 .45 1. 58 .76 .37 .84 42.8 41.9 .4 44.7 46.8 2.0 47.9 41.4 3.9 .6 .4 .4 .2 .3 (2) (2) 0) .1 .5 (2) .1 0 (2) (2) .7 12.9 .6 .2 .2 (2) .5 .8 .6 0) .1 1.0 0 .1 0) 2.8 .1 .1 .1 .1 .2 .4 .4 .5 .2 1.1 .11 .02 .10 1.01 .70 .78 1.30 1.74 .34 .64 .71 .24 .09 .10 NO. 12— WOMEN’ S M’ KAY Leather............... ............ ......................... Other shoe material-.____ __________ Wages of factory labor.......................... Salaries of officials....... ............ ........... . Salaries of clerks........ ............................ Salaries and commissions, sales force. Expenses, sales force.......................... Rent of factory and office-----------------Rent and royalties on machines_____ Lasts, patterns, and dies____________ Maintenance and repair_____________ Fuel, light, and power______________ Freight and delivery expense________ Interest.................................................... Insurance........ ........................................ Taxes............... ................................... . Bad accounts__________ ____ _______ Depreciation_________ _______ ______ All other expenses..______ __________ Net loss........................... ......................... 1 Less than one-half of 1 per cent. 26.7 20.0 47.9 2.5 .7 .'2 1.1 .6 1.6 4.1 1.8 .7 .2 0 .2 0) .1 .2 .6 9.2 2 None. 73.33 55.02 131. 55 6.82 1.81 .42 3.02 1.75 4.31 11.23 4.93 2.01 .47 .01 .56 .09 .35 .48 1.78 25. 22 104 T CONDITIONS IN SHOE INDUSTRY IN HAVERHILL 1 5 .— P er cent that specified item s o f cost o f production constitute o f net sales, and cost per 100 pairs o f shoes, by establishment and item o f cost, 1 9 2 5 , 1926, and 1927— C on tin u ed able Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 1926 1927 Cost per 100 pairs 1925 1926 1927 $182. 50 118. 70 17. 86 2. 28 .38 3.47 1. 58 1.91 7.30 1.24 1. 54 $157.96 122.19 13.48 2.30 8.18 3.27 1.19 2.16 4.48 .94 1.49 .16 .27 NO. 13— WOMEN’ S TURN 52.3 34.0 5.1 .7 .1 1.0 .5 .5 2.1 .4 .4 0) 0) .2 0) 0) .3 Leather and other shoe material_____ Wages of factory labor_______________ Salaries of officials___________________ Salaries of clerks____ _______________ Salaries and commissions, sales force _ Expenses, sales force________________ Rent of factory and office____________ Rent and royalties on machines_____ Lasts, patterns and dies_____________ Maintenance and repair_____________ Fuel, light, and power______________ Freight and delivery expense________ Interest_____________________________ Insurance___________________________ Taxes_______________________________ Bad accounts_______________________ Depreciation________________________ Moving expense_____________________ All other expenses___________________ Net gain____________________________ 1.1 1.3 46.2 35.8 3.9 .7 2.4 1.0 .3 .6 1.3 .3 .4 0 .1 .2 .1 2.2 .4 .2 .9 2.9 .11 .13 .66 .04 .04 1.15 .66 3. 78 4. 49 .34 7. 35 1.39 .84 3.03 10.08 111. 18 98.14 5.87 (2) 2.00 3.13 2.62 3. 02 .52 NO. 14— WOMEN’ S M ’ KAY Leather and other shoe material-------Wages of factory labor----------------------Salaries of officials,__________________ Salaries and commissions, sales force _ Expenses, sales force________________ Rent of factory and office-----------------Rent and royalties on machines_____ Lasts, patterns, and dies____________ Maintenance and repair-------------------Freight and delivery expense----------Interest_____________________________ Insurance___________________________ Taxes_______________________________ Depreciation________________________ All other expenses___________________ Net gain____________________________ 44.6 36.7 2.8 5.4 .5 1.3 .9 3.2 .6 .2 .1 .1 .1 .3 .5 2.8 45.8 39.8 4.5 3.2 1.0 1.0 .8 1.3 .3 .1 .2 .1 .1 .2 .7 .7 47.9 $113. 68 93. 49 42.3 7.14 2.5 13.79 (2) 1.39 .9 3. 32 1.4 2. 27 1.1 8 .11 1.3 1.48 .2 .1 .47 .35 .4 .27 .2 .2 .23 .2 .75 .8 1.16 7.16 .6 150. 85 131. 28 14.97 10. 69 3.44 3.28 2. 68 4.18 1.14 .81 .17 .46 .72 2. 31 2. 26 .89 .44 .45 .57 1. 75 1.49 25.2 21.3 35.3 9.2 .8 (2) 1.3 .8 1.1 1.7 .9 .6 .2 .1 .3 .2 .1 .3 1.2 8.3 26.6 20.8 35.5 1.2 1.1 (2) 1.4 1.1 1.2 1.1 .6 .8 .2 .2 .4 .4 .3 .4 1.6 6.2 52.41 42. 77 74. 77 2. 77 2.14 .19 2.88 2.31 2. 56 2. 92 3.18 1.93 .53 .03 .78 .78 (2) .67 1.55 14. 63 53.14 44.86 74. 38 1.93 1.74 (2) 2. 69 1.73 2. 27 3. 67 1.95 1.35 .50 .15 .61 .44 .15 .63 2. 53 17. 50 63.49 49. 69 84. 77 2.78 2. 51 20.4 15.4 42.0 1.2 22.4 16.0 41.3 1.2 1.7 124.14 203. 97 6.51 118.12 89. 22 242. 58 7.03 10.29 132.95 94. 87 245.45 7.37 10.02 .22 . 12 NO. 15— WOMEN’ S AND MISSES’ M’ KAY SLIPPERS AND PUMPS Leather (including uppers and linings)----------------------Other shoe material---------------------------------------------------Wages of factory labor-----------------------------------------------Salaries of officials___________________________________ Salaries of clerks_____________________________________ Salaries and commissions, sales force-------------------------Expenses, sales force_________________________________ Rent of factory and office____________________________ Rent and royalties on machines--------------------------------Lasts, patterns, and dies____________________________ Maintenance and repair--------------------------------------------Fuel, light, and power______________________________ Freight and delivery expense________________________ Interest..____ _______________________________________ Insurance___________________________________________ Taxes_______________________________________________ Bad debts___________________________________________ Depreciation________________________________________ All other expenses----------------------------------------------------Net gain--------------------------------------------------------------------- 25.2 20.6 36.0 1.3 1.0 .1 1.4 1.1 1.2 1.4 1.5 .9 .3 0) .4 .4 (2) .3 .7 7.0 (2) 3.35 2. 53 2. 77 2. 51 1. 52 1.99 .55 .54 .65 1.05 3.83 14.74 NO. 16— WOMEN’ S TURN Leather (including upper and linings)-----------------------Other shoe material_________________________________ Wages of factory labor_______________________________ Salaries of officials___________________________________ Salaries of clerks_____________________________________ 1 Less than one-half of 1 per cent. 22.2 18.1 36.5 1.2 1.6 1.8 101. 20 2 None. COST OF PRO D U CIN G AN D 105 SE L LIN G SHOES . 15 — P er cent that specified items o f cost o f production constitute o f net sales, and cost per 100 pairs o f shoes, by establishment and item o f cost, 1925, 1926j and 1927— C on tin u ed T a b le Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 no. 16— w o m e n ’ s 1926 1927 Cost per 100 pairs 1925 1926 $35.07 7.32 9. 88 3.71 15. 85 (3) 1.57 2. 39 1.51 1.18 3. 89 2. 55 15. 43 14. 01 $36.09 9. 30 10. 41 3. 53 12. 24 (3) .88 2. 75 1.33 1.15 2.05 3. 01 21.00 7.17 1927 t u r n — continued Salaries and commissions, sales force _ Expenses, sales force_______ ________ Rent, fuel, light, and power_________ Rent and royalties on machines_____ Lasts, patterns, and dies____________ Maintenance and repair_____________ Freight and delivery expense________ Interest_____________________________ Insurance___________________________ Taxes_______________________________ Bad debts___________________________ Depreciation________________________ All other expenses___________________ Net gain____________________________ Net loss_____________________________ 6.3 1.3 1.8 .7 2.8 (3) .3 .4 .3 .2 .7 .5 2.8 2.5 6.2 1.6 1.8 .6 2.1 (3) .2 .5 .2 .2 .4 .5 3.6 1.2 4.9 1.9 1.7 .6 1.6 (3) .4 .6 .3 .2 1.4 .6 3.7 $28.98 11.56 9. 85 3. 61 9. 38 (3) 2.11 3. 74 1.68 1.14 8.51 3.45 21.99 2. 26 .4 NO. 17— WOMEN’ S M’ KAY Leather and other shoe material________________ Wages of factory labor--------------------------------------Salaries of officials_____________________________ Salaries of clerks_______________________________ Salaries, commissions, and expenses, sales force.. Rent, fuel, light, and power____________________ Rent and royalties on machines________________ Lasts, patterns, and dies______________________ Maintenance and repair_______________________ Freight and delivery expense__________________ Interest________________________________________ Insurance______________________________________ Taxes__________________________________________ Bad debts_____________________________________ Depreciation___________________________________ All other expenses_____________________________ Net gain------------------------------------------------------------ 56.5 25.5 4.2 3.0 1.1 .9 .6 1.3 .4 .5 .2 .1 C1) .4 .1 .3 9.1 55.9 27.1 3.2 2.4 (3) .9 .5 .8 .3 .4 .2 .2 .1 .5 .1 1.9 8.6 49.5 32.4 1.8 .9 4.2 1.3 .9 .9 (3) .8 .9 .3 .7 .4 .1 2.6 1.6 1.3 1.2 45.9 32.8 2.7 .8 3.6 1.3 .8 .8 (3) .4 .9 .2 .9 .5 .1 5.4 1.5 .8 .6 36.9 43.8 1.7 2.0 .4 2.3 1.7 .8 6.4 1.0 1.8 41.6 40.4 1.2 1.8 (2) 2.1 1.4 .8 4.1 .6 1.3 |m _ 152.81 69.11 11.33 7.99 3.04 2. 29 1.53 3. 50 1.05 1.40 .48 .33 .10 1.04 .34 .93 24. 66 161.09 78.13 9. 35 6. 85 (3) 2. 52 1.53 2. 27 .97 1.21 .71 .43 .34 1.39 .34 155.17 104. 61 5. 66 2. 77 13.15 3.93 2.83 2.93 (3) 2.39 2.96 .97 2.18 1.33 .43 8. 21 5.07 4.17 3.78 143. 60 102. 60 8. 41 2. 63 11.19 3. 98 2. 51 2. 58 (3) 1.29 2. 72 .78 2. 95 1.69 .36 16.96 4. 63 2.42 1.90 99.91 118. 41 4.49 5.42 .96 6.24 4. 61 2.10 17. 25 2. 67 4. 76 178. 84 173. 77 5. 28 7.93 24. 67 NO . 18— W O M E N ’ S M ’ K A Y Leather and other shoe material_____ Wages of factory labor_______________ Salaries of officials___________________ Salaries of clerks____________________ Salaries and commissions, sales force. Expenses, sales force________________ Rent of factory and office____________ Rent and royalties on machines_____ Lasts, patterns, and dies____ _______ Maintenance and repair_____________ Fuel, light, and power______________ Freight and delivery expense________ Interest___ _____ ___________________ Insurance___________________________ Taxes_______________________________ Bad debts___________________________ Depreciation________________________ All other expenses----------------------------Net gain-------- ---------------------- ------------ 47.1 34.0 1.9 .7 3.1 1.1 (3) .3 1.0 .2 .6 .5 .2 1.3 1.5 1.2 3.4 NO. 19— WOMEN’ S TURN AND M’ KAY Leather and other shoe material_____ Wages of factory la b o r .____ ________ Salaries of officials--------- ------- ------------Salaries of clerks_____________________ Salaries and commissions, sales force... Expenses, sales force, and advertising.. Rent of factory and office....... .......... . Rent and royalties on machines............ Lasts, patterns, and dies........................ Maintenance and repair______________ Fuel, light, and power............ ................ 1 Less than one-half of 1 per cent. 2 None. 39.7 3.0 .3 1.5 150.47 139. 59 5. 45 7. 65 3.42 5. 80 5.45 2. 39 11.20 1.31 5. 52 3 Included in ‘ All other expenses.’ 9.18 6. 03 3. 36 17.75 2. 73 5. 59 106 T CONDITIONS IN SHOE INDUSTRY IN HAVERHILL 15. — Per cent that specified items of cost of production constitute of net salesy and cost per 100 pairs of shoes, by establishment and item of cost, 1925, 19261 and 1927— Continued able Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 no . 19— w o m e n ’ s 1926 1927 Cost per 100 pairs 1925 1926 $2.26 4. 22 1.45 .68 19. 83 1.86 5. 80 4. 78 $2.31 1.89 .67 .41 .76 1.28 5. 02 1927 t u r n a n d m ’ k a t — c o n t in u e d _____________ _ Freight and delivery expense _ _______ Interest. . . . ______________ . . Insurance________ _____________________ _________ _ Taxes________________________________ . . . _________ Bad debts_________ . . . ___ __ ____________ ________ Depreciation___ __ . . . All other expenses.. _________ ____ __ __ . . . ____ . . . Net gain, Net loss___ ___________ _________ __________________ 0. 6 1.1 ' .4 .2 5. 2 .5 1. 5 1.3 0.9 .7 .2 .2 .3 .5 1.9 0.7 .6 .3 .2 .1 .5 2.2 .1 3.2 $2.88 2. 58 1.08 .85 .25 2.02 9. 36 .32 8.62 NO. 20— WOMEN’ S TURN Leather (upper and linings) _________________________ Other shoe material-_____ ________ _________ _______ Wages of factory labor . . . _________________ ________ Salaries of officials. ___ _____________ .... - _______ Salaries of clerks _____ _____ ______________________ _ Salaries and commissions, sales force... .. .. _ Expenses, sales force___________ __________ Rent of factory and office— ____ _______ . _____ __ Rent and royalties on machines__________ _______ _ Lasts, patterns, a n d d ies Maintenance and repair _ Fuel, light, and power. _ _______________________ Freight and delivery expense_____________________ Interest..______ _______ _____________________________ Insurance__ __________ ________ _____________________ Taxes____ ____ ________ ________ ___________________ Bad debts _ __ ____________ ____ ____________ _ _ Depreciation____________________________________ ____ All other expenses._ _________________________ ____ __ Net gain__________ __________ _______________________ Net loss_______________________________________ ____ 26.1 22. 3 35.1 2.0 1.2 1.0 .8 2. 5 .6 2. 5 .4 1.0 .2 !3 .6 .3 .5 .9 1. 6 1.0 27. 5 22.0 35.2 2.3 1.3 1.3 .8 2.3 .6 3.0 .4 .9 .3 .3 .6 .3 2.9 .7 1.6 18.7 32.4 33.2 2.7 1.1 .3 .8 1.8 .8 3.3 .4 .8 .3 .3 .2 .2 1.4 .6 .9 4.1 .4 95. 69 81.85 128. 37 7. 31 4. 39 3. 69 2.90 9. 06 2.29 9. 25 1.29 3. 62 .81 1.08 2.19 .95 1.99 3.39 5. 80 3.54 120. 52 96. 36 154. 45 9. 94 5. 56 5.66 3, 50 9. 99 2. 68 13.17 1.79 3.85 1.14 1.52 2. 71 1.28 12. 71 3. 28 6.83 61.79 107.41 109.93 8. 80 3. 77 1.12 2. 77 5.96 2.79 10.95 1.18 2.58 .98 .92 .73 .78 4.79 2.12 3.13 17.99 1.24 NO. 21— WOMEN’ S M’ KAY AND PUMPS 44.4 39.7 8.2 .8 .4 .3 .5 .7 1.1 .4 .6 0) .3 .1 .1 .1 1.0 1.8 Leather and other shoe material ...................................... Wages of factory labor________________ ______________ Salaries of officials_______________ _____ ______________ Salaries of clerks _____________________ _____________ Salaries and commissions, sales force. __________ _____ Expenses, sales force _______________________________ Rent of factory and office - __ _____________ _______ Rent and royalties on machines.. . _________________ Lasts, patterns, and dies.. ________________ ______ Maintenance and repair______________________________ Fuel, light, and power ______ ________ _____ _______ Freight and delivery expense______________ . _______ Interest __________________________________ . _____ Insurance___ ____ ____ _____ _______________________ Taxes _ _______ _____ _______ _____ ______________ Depreciation______ _____ ______ ______ ____ _________ All other expenses __________________________________ Net gain . . ______________________________ 52.09 46. 57 9. 55 .94 .49 .37 .59 .83 1.26 .49 .66 .03 .31 .14 .06 .14 1.20 2.12 NO. 22— WOMEN’ S M’ KAY Leather and satins........................................................ ....... Other shoe material_______ _____________ ______ ______ Wages of factory labor. _____ _______________________ Salaries of officials____________________________________ Salaries of clerks____________ __________________ ____ Salaries and commissions, sales force ________________ Expenses, sales force__ ____ ________________________ Rent, fuel, light, and power__________________________ Rents and royalties on machines____ ______ _________ Lasts, patterns, and dies_____________________________ Maintenance and repair..____ _____________ ___ _____ Freight and delivery expense........................................... Interest...................... ............................. ............. ............... i Less than one-half of 1 per cent. 22.4 23.2 37.1 5.4 1.1 .4 1.2 1.7 .9 (1>.8 .3 (2) 23.7 22.9 37.2 5.1 1.0 .2 .4 1.4 .8 3.3 .7 .3 (2) 24.3 24.1 35.0 5.2 1.2 .8 .9 1.1 .8 1.5 .5 .3 (2) 71.58 74.25 118.74 17.15 3.40 1.31 3. 75 5.43 2.88 0 2. 52 .90 (2) 2 None. 78. 58 76.14 123. 59 17.03 3.34 .76 1.44 4.67 2.79 10.90 2.35 1.06 (2) 79.48 79.02 114. 84 17.06 3.90 2. 70 3.10 3.69 2. 76 4.87 1. 56 .89 (2) 107 COST OF PRODUCING AND SELLING SHOES T a b l e 15.— Per cent that specified items of cost of production constitute of net sales, and cost per 100 pairs of shoes, by establishment and item of cost, 1925, 1926, and 1927— Continued Establishment number, kind of shoes, and item of expense Per cent that specified items constitute of net sales 1925 1926 1927 Cost per 100 pairs 1925 1926 1927 no. 22—women’s m’kay—continued Insurance ......-............. - ..................... ..... . Taxes__________________________ ____________________ Bad debts____________ ______________________________ Depreciation._ ________________ _______________ _ All other expenses____________________ _______________ Net gain____________________________ __________ _____ 1.0 .3 (2) 2.2 1.5 2.9 1.0 .2 (2) .4 1.4 .9 1.0 1.5 .9 .4 1.9 1.0 $3.30 .87 (2) 7. 01 4.69 9. 42 $3. 33 .77 (2) 1.39 4.58 3.14 $3.12 .52 2.92 1.18 6.38 3.20 53.1 22.6 3.6 .5 2.8 1.4 5.5 .6 .4 .2 .8 1.1 .1 .3 .1 1.1 .7 4.3 .8 43. 6 30.4 4.8 .8 2.7 1.2 5.8 .7 .2 .3 1.1 .4 .2 .6 .2 1.0 .7 2.9 2.5 48.6 24.9 4.2 3.8 3.4 .9 4. 5 .7 .1 .3 .8 .4 .1 .5 .3 .7 .6 4.7 .6 316. 64 135. 05 21. 61 2.98 16. 41 8. 26 32. 53 3.66 2. 46 1.29 4. 80 6.64 .80 1.78 .73 6.31 4. 27 25. 63 4. 57 187.95 131.24 20.50 3. 34 11.85 5.01 25.00 2.90 .97 1.16 4. 59 1. 78 . 75 2. 57 .77 4. 35 3.17 12.61 10.88 224. 52 115.03 19.23 17. 71 15.89 4.37 20. 61 3. 01 .60 1.25 3.66 1. 76 .64 2.33 1.24 3.04 2. 91 21. 89 2. 58 NO. 23— WOMEN’ S M’ KAY Leather and other shoe m aterial-._____________ ____ Wages of factory labor__________ _ _____________ Salaries of officials.____ ______________________________ Salaries of clerks________________ _____________ _____ Salaries and commissions, sales force. ._ ____________ Expenses, sales force________________ _____ ____ _____ Rent of factory and office____________________________ Rent and royalties on machines______________________ Lasts, patterns, and dies_____________________________ Maintenance and repair...................................................... Fuel, light, and power___________ _________________ . Freight and delivery expense_________________________ Interest______ ______ _________ ____ _________________ Insurance.............................. ..................... .......................... Taxes_____________________ _____ ____________________ Bad debts......... ............................. ............................ .......... Depreciation____________________ ____ _______ _______ All other expenses_______________________ _____ ______ Net gain________ ______ _____________________________ 2 None. LIST OF BULLETINS OF THE BUREAU OF LABOR STATISTICS The following is a list of all bulletins of the Bureau of Labor Statistics published since July 1912, except that in the case of bulletins giving the results of periodic surveys of the bureau only the latest bulletin on any one subject is here listed. A complete list of the reports and bulletins issued prior to July, 1912, as well as the bulletins published since that date will be furnished on application. Bulletins marked thus are out of print. , , (*) Conciliation and Arbitration (including strikes and lockouts). *No. 124. Conciliation and arbitration in the building trades of Greater New York. [1913.] *No. 133. Report of the industrial council of the British Board of Trade on its inquiry into industrial agreements. [1913.] No. 139. Michigan copper district strike. [1914.] No. 144. Industrial court of the cloak, suit, and skirt industry of New York City. [1914.] No. 145. Conciliation, arbitration, and sanitation in the dress and waist industry of New York City. [1914.] *No. 191. Collective bargaining in the anthracite coal industry. [1916.] *No. 198. Collective agreements in the men’s clothing industry. [1916.] No. 233. Operation of the industrial disputes investigation act of Canada. [1918.1 No. 255. Joint industrial councils in Great Britain. [1919.] No. 283. History of the Shipbuilding Labor Adjustment Board, 1917 to 1919. No. 287. National War Labor Board: History of its formation, activities, etc. [1921.3 No. 303. Use of Federal power in settlement of railway labor disputes. [1922.] No. 341. Trade agreement in the silk-ribbon industry of New York City. [1923.] No. 402. Collective bargaining by actors. [1926.] No. 468. Trade agreements, 1927. No. 481. Joint industrial control in the book and job printing industry. [1928.] (In press.) Cooperation. No. 313. Consumers’ cooperative societies in the United Jtates in 1920. No. 314. Cooperative credit societies in America and in foreign countries. [1922.] No. 437. Cooperative movement in the United States in 1925 (other than agricultural). Employment and Unemployment. *No. 109. Statistics of unemployment and the work of employment offices in the United States. [1913.] No. 172. Unemployment in New York City, N. Y . [1915.] *No. 183. Regularity of employment in the women’s ready-to-wear garment industries. [1915.] *No. 195. Unemployment in the United States. [1916.] Nc. 196. Proceedings of the Employment Managers’ Conference held at Minneapolis, Minn., Jan uary 19 and 20, 1916. *No. 202. Proceedings of the conference of Employment Managers’ Association of Boston, Mass., held May 10,1916. No. 206. The British system of labor exchanges. [1916.] No. 227. Proceedings of the Employment Managers’ Conference, Philadelphia, Pa., April 2 and 3, 1917. No. 235. Employment system of the Lake Carriers’ Association. [1918.] *No. 241. Public employment offices in the United States. [1918.] No. 247. Proceedings of Employment Managers’ Conference, Rochester, N . Y ., M ay 9-11,1918. No. 310. Industrial unemployment: A statistical study of its extent and causes. [1922.] No. 409. Unemployment in Columbus, Ohio, 1921 to 1925. Foreign Labor Laws. *No. 142. Administration of labor laws and factory inspection in certain European countries. Housing. *No. 158. No. 263. No. 295. No* 469. Government aid to home owning and housing of working people in foreign countries. Housing by employers in the United States. [1920.] Building operations in representative cities in 1920. Building permits in the principal cities of the United States in [1921 to] 1927. 24011°— 29------- 8 (i) [1914.] [1914.] Industrial Accidents and Hygiene. *No. 104. Lead poisoning in potteries, tile works, and porcelain enameled sanitary ware factories. [1912.] No. 120. Hygiene of the painters’ trade. [1913.] *No. 127. Dangers to workers from dusts and fumes, and methods of protection. [1913.] *No. 141. Lead poisoning in the smelting and refining of lead. [1914.] *No. 157. Industrial accident statistics. [1915.] *No. 165. Lead poisoning in the manufacture of storage batteries. [1914.] *No. 179. Industrial poisons used in the rubber industry. [1915.] No. 188. Report of British departmental committee on the danger in the use of lead in the painting of buildings. [1916.] *No. 201. Report of committee on statistics and compensation insurance cost of the International Asso ciation of Industrial Accident Boards and Commissions. [1916.] *No. 207. Causes of death, by occupation. [1917.] *No. 209. Hygiene of the printing trades. [1917.] *No. 219. Industrial poisons used or produced in the manufacture of explosives. [1917.] No. 221. Hours, fatigue, and health in British munition factories. [1917.] No. 230. Industrial efficiency and fatigue in British munition factories. [1917.] *No. 231. Mortality from respiratory diseases in dusty trades (inorganic dusts). [1918.] *No. 234. Safety movement in the iron and steel industry, 1907 to 1917. No. 236. Effects of the air hammer on the hands of stonecutters. [1918.] No. 249. Industrial health and efficiency. Final report of British Health of Munition Workers’ Committee. [1919.] *No. 251. Preventable death in the cotton-manufacturing industry* [1919.] No. 256. Accidents and accident prevention in machine building. [1919.] No. 267. Anthrax as an occupational disease. [1920.] No. 276. Standardization of industrial accident statistics. [1920.] No. 280. Industrial poisoning in making coal-tar dyes and dye intermediates. [1921.] No. 291. Carbon-monoxide poisoning. [1921.] No. 293. The problem of dust phthisis in the granite-stone industry. [1922.] No. 298. Causes and prevention of accidents in the iron and steel industry, 1910-1919. No. 306. Occupational hazards and diagnostic signs: A guide to impariments to be looked for in hazardous occupations. [1922.] No. 339. Statistics of industrial accidents in the United States. [1923.] No. 392. Survey of hygienic conditions in the printing trades. [1925.] No. 405. Phosphorus necrosis in the manufacture of fireworks and in the preparation of phosphorus. [1926.] No. 425. Record of industrial accidents in the United States to 1925. No. 426. Deaths from lead poisoning. [1927.] No. 427. Health survey of the printing trades, 1922 to 1925. No. 428. Proceedings of the Industrial Accident Prevention Conference, held at Washington, D . O., July 14-16, 1926. No. 460. A new test for industrial lead poisoning. [1928.] No. 466. Settlement for accidents to American seamen. [1928.] Industrial Relations and Labor Conditions. No. 237. Industrial unrest in Great Britain. [1917.] No. 340. Chinese migrations, with special reference to labor conditions. [1923.] No. 349. Industrial relations in the west coast lumber industry. [1923.] No.’ 361. Labor relations in the Fairmont (W. Ya.) bituminous-coal field. [1924.] No. 380. Postwar labor conditions in Germany. [1925.] No. 383. Works council movement in Germany. [1925.] No. 384. Labor conditions in the shoe industry in Massachusetts, 1920-1924. No. 399. Labor relations in the lace and lace-curtain industries in the United States. [1925.] Labor laws of the United States (including decisions of courts relating to labor). No. 211. Labor laws and their administration in the Pacific States. [1917.] No. 229. Wage-payment legislation in the United States. [1917.] No. 285. Minimum-wage laws of the United States: Construction and operation. [1921.] No. 321. Labor laws that have been declared unconstitutional. [1922.] No. 322. Kansas Court of Industrial Relations. [1923.] No. 343. Laws providing for bureaus of labor statistics, etc. [1923.] No. 370. Labor laws of the United States, with decisions of courts relating thereto. [1925.] No. 408. Laws relating to payment of wages. [192G.] No. 444. Decisions of courts and opinions affecting labor, 1926. No. 467. Minimum-wage legislation in various countries. [1928.] (In press.) No. 470. Labor legislation of 1927. (In press.) (II) Proceedings of Annual Conventions of the Association of Governmental Labor Officials of the United States and Canada. (Name changed in 1928 to Association of Governmental Officials in Industry of the United States and Canada.) •No. 266. Seventh, Seattle, Wash., July 12-15, 1920. No. 307. Eighth, New Orleans, La., May 2-6,1921. No. 323. Ninth, Harrisburg, Pa., M ay 22-26, 1922. No. 352. Tenth, Richmond, Va., May 1-4, 1923. *No. 389. Eleventh, Chicago, 111., May 19-23, 1924. *No. 411. Twelfth, Salt Lake City, Utah, August 13-15, 1925. No. 429. Thirteenth, Columbus, Ohio, June 7-10, 1926. No. 455. Fourteenth, Paterson, N . J., May 31 to June 3, 1927. No. 480. Fifteenth, New Orleans, La., May 15-24, 1928. (In press.) Proceedings of Annual Meetings of the International Association of Industrial Accident Boards and Commissions. No. 210. Third, Columbus, Ohio, April 25-28, 1916. No. 248. Fourth, Boston, Mass., August 21-25,1917. No. 264. Fifth, Madison, Wis., September 24-27, 1918. *No. 273. Sixth, Toronto, Canada, September 23-26,1919. No. 281. Seventh, San Francisco, Calif., September 20-24, 1920. No. 304. Eighth, Chicago, 111., September 19-23,1921. No. 333. Ninth, Baltimore, M d., October 9-13,1922. No. 359. Tenth, St. Paul, Minn., September 24-26, 1923. No. 385. Eleventh, Halifax, Nova Scotia, August 26-28,1924. No. 395. Index to proceedings, 1914-1924. No. 406. Twelfth, Salt Lake City, Utah, August 17-20, 1925. No. 432. Thirteenth, Hartford, Conn., September 14-17, 1926. No. 456. Fourteenth, Atlanta, Ga., September 27-29, 1927. Proceedings of Annual Meetings of the International Association of Public Employment Services. No. 192. First, Chicago, December 19 and 20, 1913; second, Indianapolis, September 24 and 25, 1914; third, Detroit, July 1 and 2,1915. No. 220. Fourth, Buffalo, N . Y ., July 20 and 21, 1916. No. 311. Ninth, Buffalo, N. Y ., September 7-9, 1921. No. 337. Tenth, Washington, D. C., September 11-13, 1922. No. 355. Eleventh, Toronto, Canada, September 4-7, 1923. No. 400. Twelfth, Chicago, 111., May 19-23, 1924. No. 414. Thirteenth, Rochester, N. Y ., September 15-17, 1925. No. 478. Fifteenth, Detroit, Mich., October 25-28, 1927. Productivity of Labor. No. 356. Productivity costs in the common-brick industry. [1924.] No. 360. Time and labor costs in manufacturing 100 pairs of shoes, 1923. No. 407. Labor cost of production and wages and hours of labor in the paper box-board industry. [1926.] No. 412. Wages, hours, and productivity in the pottery industry, 1925. No. 441. Productivity of labor in the glass industry. [1927.] No. 474. Productivity of labor in merchant blast furnaces. [1928.] (In press.) No. 475. Productivity of labor in newspaper printing. [1928.] (In press.) Retail Prices *No. 121. *No. 130. No. 164. No. 170. No. 357. No. 369. No. 464. and Cost of Living. Sugar prices, from refiner to consumer. [1913.] Wheat and flour prices, from farmer to consumer. [1913.] Butter prices, from producer to consumer. [1914.] Foreign food prices as affected by the war. [1915.] Cost of living in the United States. [1924.] The use of cost-of-living figures in wage adjustments. [1925.] Retail prices, 1890 to 1927. (In press.) Safety Codes. *No. 331. Code of lighting: Factories, mills, and other work places. No. 336. Safety code for the protection of industrial workers in foundries. No. 350. Specifications of laboratory tests for approval of electric headlighting devices for motor vehicles. No. 351. Safety code for the construction, care, and use of ladders. No, 375. Safety code for laundry machinery and operations. No. 378. Safety code for woodworking plants. No. 382. Code for lighting school buildings. No. 410. Safety code for paper and pulp mills. No. 430. Safety code for power presses and foot and hand presses. No. 433. Safety codes for the prevention of dust explosions. (in) Safety Codes—Continued. No. 436. Safety code for the use, care, and protection of abrasive wheels. No. 447. Safety code for rubber mills and calenders. No. 451. Safety code for forging and hot-metal stamping. No. 463. Safety code for mechanical power-transmission apparatus.—First revision. Vocational Workers* Education. *No. 159. Short-unit courses for wage earners, and a factory school experiment. [1915.] *No. 162. Vocational education survey of Richmond, Va. [1915.] No. 199. Vocational education survey of Minneapolis, Minn. [1917.] No. 271. Adult working-class education in Great Britain and the United States. [1920.] No. 459. Apprenticeship in building construction. [1928.] Wages and Hours of Labor. *No. 146. Wages and regularity of employment and standardization of piece rates in the dress and waist industry of New York. [1914.] *No. 147. Wages and regularity of employment in the cloak, suit, and skirt industry. [1914.] No. 161. Wages and hours of labor in the clothing and cigar industries, 1911 to 1913. No. 163. Wages and hours of labor in the building and repairing of steam railroad cars, 1907 to 1913. *No. 190. Wages and hours of labor in the cotton, woolen, and silk industries, 1907 to 1914. No. 204. Street-railway employment in the United States. [1917.] No. 225. Wages and hours of labor in the lumber, millwork, and furniture industries, 1915. No. 265. Industrial survey in selected industries in the United States, 1919. No. 297. Wages and hours of labor in the petroleum industry, 1920. No. 356. Productivity costs in the common-brick industry. [1924.] No. 358. Wages and hours of labor in the automobile-tire industry, 1923. No. 360. Time and labor costs in manufacturing 100 pairs of shoes, 1923. No. 365. Wages and hours of labor in the paper and pulp industry, 1923. No. 394. Wages and hours of labor in metalliferous mines, 1924. No. 407. Labor costs of production and wages and hours of labor in the paper box-board industry, [1926.] No. 412. Wages, hours, and productivity in the pottery industry, 1925. No. 413. Wages and hours of labor in the lumber industry in the United States, 1925. No. 416. Hours and earnings in anthracite and bituminous coal mining, 1922 and 1924. No. 435. Wages and hours of labor in the men’s clothing industry, 1911 to 1926. No. 438. Wages and hours of labor in the motor-vehicle industry, 1925. No. 442. Wages and hours of labor in the iron and steel industry, 1907 to 1925. No. 443. Wages and hours of labor in woolen and worsted goods manufacturing, 1910 to 1926. No. 446. Wages and hours of labor in cotton-goods manufacturing, 1910 to 1926. No. 450. Wages and hours of labor in the boot and shoe industry, 1907 to 1926. No. 452. Wages and hours of labor in the hosiery and underwear industries, 1907 to 1926. No. 454. Hours and earnings in bituminous-coal mining, 1922, 1924, and 1926. No. 457. Union scales of wages and hours of labor, M ay 15, 1927. No. 471. Wages and hours of labor in foundries and machine shops, 1927. No. 472. Wages and hours of labor in slaughtering and meat packing, 1927. (In press.) No. 476. Union scale of wages and hours of labor, 1927. (In press.) Welfare *No. No. *No. No. Work. 123. Employer’s welfare work. [1913.] 222. Welfare work in British munitions factories. [1917.] 250. Welfare work for employees in industrial establishments in the United States. 458. Health and recreation activities in industrial establishments, 1926. Wholesale Prices. No. 284. Index numbers of wholesale prices in the United States and foreign countries. No. 440. Wholesale prices, 1890 to 1926. No. 453. Revised index numbers of wholesale prices, 1923 to July, 1927. No. 473. Wholesale prices, 1913 to 1927. (In press.) [1919.] [1921.] Women and Children in Industry. No. 116. Hours, earnings, and duration of employment of wage-earning women in selected industries in the District of Columbia. [1913.] *No. 117. Prohibition of night work of young persons. [1913.] No. 118. Ten-hour maximum working-day for women and young persons. [1913.] No. 119. Working hours of women in the pea canneries of Wisconsin. [1913.] *No. 122. Employment of women in power laundries in Milwaukee. [1913.] No. 160. Hours, earnings, and conditions of labor of women in Indiana mercantile establishments and garment factories. [1914.] *No. 167. Minimum-wage legislation in the United States and foreign countries. [1915.] *N o. 175. Summary of the report on conditions of woman and child wage earners in the United States. [1915.] (IV ) Women and Children in Industry— Continued. *No. 176. Effect of minimum-wage determinations in Oregon. [1915.] *No. 180. The boot and shoe industry in Massachusetts as a vocation for women. [1915.] *No. 82. Unemployment among women in department and other retail stores of Boston, Mass. [1916.] No. 193. Dressmaking as a trade for women in Massachusetts. [1916.] No. 215. Industrial experience of trade-school girls in Massachusetts. [1917.] *No. 217. Effect of workmen’s compensation laws in diminishing the necessity of industrial em ployment of women and children. [1918.] No. 223. Employment of women and juveniles in Great Britain during the war. [1917.] No. 253. Women in the lead industries. [1919.] Workmen’ s Insurance and Compensation (including laws relating thereto). *No. 101. Care of tuberculosis wage earners in Germany. [1912.] *No. 102. British national insurance act, 1911. No. 103. Sickness and accident insurance law in Switzerland. [1912.] No. 107. Law relating to insurance of salaried employees in Germany. [1913.] *No. 155. Compensation for accidents to employees of the United States. [1914.] No. 212. Proceedings of the conference on social insurance called by the International Association of Industrial Accident Boards and Commissions, Washington, D . C., December 5-9, 1916. *No. 243. Workmen’s compensation legislation in the United States and foreign countries, 1917 and 1918. No. 301. Comparison of workmen’s compensation insurance and administration. [1922.] No. 312. National health insurance in Great Britain, 1911 to 1921. No. 379. Comparison of workmen’s compensation laws of the United States as of January 1, 1925. No. 423. Workmen’s compensation legislation of the United States and Canada as of July 1,1926. No. 477. Public-service retirement systems, United States and Europe. [1928.] (In press.) Miscellaneous Series. *No. 174. Subject index of the publications of the United States Bureau of Labor Statistics up to May 1, 1915. No. 208. Profit sharing in the United States. [1916.] No. 242. Food situation in central Europe, 1917. No. 254. International labor legislation and the society of nations. [1919.] No. 268. Historical survey of international action affecting labor. [1920.] No. 282. Mutual relief associations among Government employees in Washington, D. C. [1921.] No. 299. Personnel research agencies: A guide to organized research in employment, management, industrial relations, training, and working conditions. [1921.] No. 319. The Bureau of Labor Statistics: Its history, activities, and organization. [1922.] No. 326. Methods of procuring and computing statistical information of the Bureau of Labor Statistics. [1923.] No. 342. International Seamen’s Union of America: A study of its history and problems. [1923.] No. 346. Humanity in government. [1923.] No. 372. Convict labor in 1923. No. 386. Cost of American almshouses. [1925.] No. 398. Growth of legal-aid work in the United States. [1926.] No. 401. Family allowances in foreign countries. [1926.] No. 420. Handbook of American trade-unions. [1926.] No. 439. Handbook of labor statistics, 1924 to 1926. No. 461. Labor organizations in Chile. [1928.] (In press.) No. 462. Park recreation areas in the United States. [1928.] No. 465. Beneficial activities of American trade-unions. [1928.] (In press.) No. 479. Activities and functions of a State department of labor. [1928.] A D D IT IO N A L COPIES OF THIS PUBLICATION MAY BE PROCURED FROM THE SUPERINTENDENT OF DOCUMENTS U.S.GOVERNMENT PRINTING OFFICE WASHINGTON, D. C. AT 20 CENTS PER COPY V (V )