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LABOR REVIEW
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MAY 1 4 7940

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...
P h o to b y U n ited S ta te s D e p a r tm e n t o f th e In terior

U this issue . . .

Savings-Bank Life Insurance
for Getting Jobs

iPRIL

1940

tures


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fai. 50 • No. 4
Guild
Federal Reserve Bank of St. Louis

•

• New Techniques

• W orkers 1 Housing Expendi­

Collective Bargaining

by Newspaper

• W a g es in the Leather Industry

UNITED STATES DEPARTMENT OF LABOR
Frances Perkins, Secretary
♦

BUREAU OF LABOR STATISTICS
Isador Lubin, Commissioner

Sidney W. Wilcox, Chief Stat­
istician

Hugh S. Hanna, Chief, Edito­
rial and Research

A. F. Hinrichs, Chief Economist

Henry J. Fitzgerald, Adminis­
trative Officer

C H IE F S

OF

D IV IS IO N S

and

Swen Kjaer, Industrial Acci­
dents

Lewis E. Talbert, Employment
Statistics

Florence Peterson, Industrial
Relations

J. M. Cutts, Wholesale Prices

Charles F. Sharkey,
Law Information

Jacob Perlman, Wage
Hour Statistics

Stella Stewart, Retail Prices
Faith M. Williams, Cost of
Living
Herman B. Byer, Construction
and Public Employment

Labor

Boris Stern, Labor Informa­
tion Bulletin
John J. Mahaney, Machine
Tabulation

Published by the Bureau of Labor Statistics, under authority of
Public Resolution No. 57, approved M ay 11, 1922 (42 Stat. 541), as
amended by section 307, Public Act 212, 72d Congress, approved
June 30, 1932. For sale by the Superintendent of Documents, Wash­
ington, D. C. Price, 30 cents a copy. Subscription price per year in
the United States, Canada, and Mexico, $3.50; other countries, $4.75.
This publication approved by the Director, Bureau of the Budget.


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MONI
UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS
+

HUGH

S.

HANNA,

C O N T E N T S ULm iBO
Cover:

MM 1

EDITOR

+

r AP?!L 1940 M 50 No-4

4 1940

Old Faithful Geyser, YeIlQjya.tiO.ne National Park, Wyo.

Special articles:
Savings-bank life insurance in Massachusetts and New York, 1939. _
New techniques for getting jobs________________________________
Housing facilities and expenditures of wage earners and clerical
workers___________________________________________________
Collective bargaining by the American Newspaper Guild___________

787
797
807
825

Wartime emergency controls:
Family allowances for mobilized men___________________________
Reinstatement of soldiers in civil employment in Australia_________
Overtime pay in France______________________________________
War-risk bonus for seamen in India_____________________________
Compensation scheme for Swiss soldiers_________________________

843
845
845
847
847

Industrial relations:
Enforcement clauses in union agreements_______________________
Cooperation between employers’ and workers’ organizations in
Finland______________________
Program of International Labor Conference, June 1940___________

849
855
856

Employment and labor conditions:
Interstate conference on migratory labor_______________________
NYA college and graduate-work program, 1939-40_______________
Unemployment in Nebraska, 1932-39___________________________
Age distribution of job applicants in New York City_______________
Changes in working conditions of British labor in 1939_____________
Decrease in long-term unemployment in Great Britain_____________

857
859
859
861
863
865

Social security:
Recent developments in family-allowance movement______________
Amendment of New Zealand social insurance act_________________
Placement work of Public Employment Service, February 1940 and
year 1939______________________________ __________________
Unemployment-compensation operations, February 1940 and year
1939_____________________________________________________
217593— 40------ 1


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I

867
868
870
878

Contents

II

Labor laws and court decisions:
Legislation on weekly rest--------------------- ---------------------------------Court decisions of interest to labor:
Fact-finding powers of National Labor Relations Board exclusive.
Appointment of impartial physicians in workmen’s compensation
cases_________________________________________________
Compensation awarded for injury to a State senator-------------Minimum-wage legislation as of January 1, 1940--------------------------

884
888
889
889
891

Industrial hygiene and safety:
Health and safety recommendations of New South Wales Coal Com­
mission___________________________________________________

910

Cost and standards of living:
Changes in cost of living in the United States, December 15, 1939, and
year 1939---------------Estimated intercity differences in cost of living, December 15, 1939. _
Changes in cost of living of Federal employees in Washington, D. C._
How WPA wages are spent----------------------------------------------------Cost of living in foreign countries-----------------------------------------------

912
923
926
929
930

Labor disputes:
Trend of strikes---------------------Strikes in December 1939-------------------------------------------------------Activities of the United States Conciliation Service, February 1940..

934
935
943

Minimum wages and maximum hours:
Changes in wage and hour regulations—apprentices, handicapped
workers, and record keeping________________________________
Effect of minimum-wage in New York beauty parlors--------------------

945
948

W ages and hours of labor:
Hourly earnings in the leather industry, September 1939----------------Cuba—Wage scale for the sugar industry, 1940___________________
Germany—Wages in 1940____________________________
Norway-—Wage increases, in 1940, based on cost of living---------------Sweden—Sliding scale of wages--------------------------------------------------

950
974
976
983
984

Labor turn-over:
Labor turn-over in manufacturing, January 1940_____ ___________

986

Trend of employment and pay rolls:
Summary of reports for February 1940_________________________
Detailed reports for business and industrial employment, January
1940______________________________________________________

993
998

Building operations:
Summary of building construction in principal cities, February 1940. _ 1011

Retail prices:
Food prices in February 1940__________________________________
Coal prices in February 1940_______________________ ____________

1016
1021

W holesale prices:
Wholesale prices in February 1940______________________________

Labor conditions in Latin America _______________________________
Recent publications of labor interest_____________________

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1025
974
1030

This Issue in Brief

Effect of M inim um Wage in New York
Beauty Parlors.

All classes of workers in beauty
shops in New York benefited when
the minimum wage of $16.50 a week
became mandatory in th at industry.
The average beauty-parlor operator
had $3.27 more in her weekly pay
envelope in March 1939 than in 1936
before the compulsory minimum wage.
A comparison of the earnings and
hours of work of woman workers in
New York beauty shops in 1936 and
1939 is given on page 948.
New Techniques for Getting Jobs.

Among the new, non-profit-making
schemes developed as a result of the
depression to assist the jobless in their
search for employment are the “man­
marketing clinic,” the “forty-plus
club,” and the “job hunter’s organiza­
tion.” An account of the operation
of these organizations and of their
success in placing unemployed persons
in jobs is given on page 797.
Weekly Rest Legislation.

Under our present industrial devel­
opment many industries operate 7
days a week. Most of the States have
endeavored to ameliorate the situation
for employees in these industries by
enacting laws either prohibiting Sun­
day labor or requiring 1 day of rest in
7, or both. The present status of
such legislation is shown on page 884.
Savings-Bank Life Insurance.

Low-cost life insurance has been
sold by savings banks in Massachusetts
for over 30 years and in the State of
New York for over a year. Under
this system, designed primarily for


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wage earners and other persons of
moderate income, about 193,000 poli­
cies, representing over $173,000,000 of
life insurance in Massachusetts and
more than 7,000 policies for over
$5,836,000 life insurance in New York,
were in force in the fall of 1939. A
description of the system and data on
its growth are presented on page 787.
American Newspaper Guild.

Several unsuccessful attempts had
been made to organize news writers
prior to 1933. The passage of the
National Industrial Recovery Act in
that year gave the impetus for re­
newed activity, and the American
Newspaper Guild was formed in De­
cember 1933. Although the new or­
ganization has experienced its share of
difficulties, it has expanded to a mem­
bership of about 20,000, representing a
little more than half of those eligible
from the editorial departments and
about one-fourth of the other news­
paper employees within its jurisdic­
tion. An analysis of the agreements
obtained by the Guild is given in the
article on page 825.
Wages in Leather Manufacture.

Earnings in leather tanning and
finishing averaged 62.3 cents an hour
in September 1939. Although the
range of individual earnings was quite
wide, a relatively small proportion of
the workers were in the low-earning
classes. Taking the industry as a
whole, only 1.2 percent were paid less
than 30 cents an hour, 2.7 percent
earned less than 35 cents, and 5.8
percent received less than 40 cents.
By contrast, a fairly substantial
scattering of employees were found in
III

IV

This Issue in Brief

the higher-earning classes, 13.2 per­
cent averaging 82.5 cents an hour or
better. This is particularly note­
worthy in view of the predominance of
semiskilled and unskilled workers in
the industry. The 30-cent hourly
minimum which became effective on
October 24, 1939, under the Fair
Labor Standards Act probably re­
sulted in no more than minor read­
justments in the wage structure of the
leather industry. Page 950.
Unemployment in Great Britain.

Long-term unemployment in Great
Britain has been substantially reduced
since the outbreak of the European
war. From August 14, 1939, to
January 1, 1940, the number of reg­
istered unemployed men who had been
out of work for 1 year and over de­
creased from 223,098 to 136,669, or
by 38.7 percent. Men on the register
1 year and under 2 decreased in num­
ber by 47.6 percent as compared with
26.0 percent for those registered 5
years and over. Women registered
for 1 year and over decreased only


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Federal Reserve Bank of St. Louis

from 20,902 to 20,317 in this same
period.
The percentage decrease
amounted to 2.8, but the number of
women who had been on the register
1 year and under 2 was reduced by
8.3 percent. Over half of the 136,669
long-term unemployed men registered
on January 1 were general laborers,
mine laborers, and other mine work­
ers. Page 865.
Housing Facilities and Expenditures.

In 1934-36 the home of the typical
urban wage earner or clerical worker
with an income above $500 had a
bathroom with inside flush toilet and
hot running water. It also had elec­
tric lights, and gas or electricity for
cooking. The average expenditure
was $34 per month. This figure in­
cludes fuel, light, and refrigeration,
and the rental value of owned homes.
Seventy percent of the families in­
cluded in the study rented their homes.
Of the families who rented, 38 percent
lived in houses, 24 percent in heated
apartments, and 38 percent in un­
heated apartments. Page 807.

MONTHLY LABOR REVIEW
FOR APRIL 1940

SAVINGS-BANK LIFE INSURANCE IN
MASSACHUSETTS AND NEW YORK, 1939 1
Summary
ABOUT 193,000 policies representing over $173,000,000 of life
insurance, issued through savings banks in Massachusetts, were in
force on October 31, 1939. In New York the savings banks had issued
more than 7,000 policies for over $5,836,000 insurance. The savingsbank life-insurance system, providing low-cost life insurance for
persons of moderate income, has been in operation in Massachusetts
for over 30 years. New York introduced the system just over a year
ago. So far these are the only States which have adopted the system,
but its operation in these two States has shown that there is a demand
for this type of insurance.
In Massachusetts there are 28 savings banks now issuing life in­
surance, with numerous agencies throughout the State. In 1939 2 the
premium income amounted to over $5,000,000 and the total income
to nearly $7,000,000. Disbursements totaled nearly $4,000,000,
including $673,000 for expenses of operation. Almost $3,000,000
was paid to policyholders in settlement of claims, annuities, endow­
ments, dividends, etc. Over $1,000,000 of this was in dividends.
The banks had aggregate legal reserves of over $27,600,000, and the
total surplus of the system amounted to about $2,294,000. Admitted
assets totaled over $31,800,000.
At the beginning of 1940 seven banks in New York had been
licensed to issue life-insurance policies and seven banks had become
agency banks. At the end of the fiscal year 1939 the system had been
in operation only 10 months and a few of the banks had operated for
less than 7 months. In this period the premium income amounted to
over $122,000 and the total income to about $278,000, including
$150,000 subscriptions to capital. Disbursements aggregated $30,480.
The expenses of operation amounted to over $20,000, but included
over $13,000 for medical examinations. Claims and surrender values
were settled by the payment of $5,500 to policyholders. No endow1 Prepared by Grace F. Felker, U. S. Bureau of Labor Statistics.
2 Data for 1939 are for 26 banks, as 2 banks entered the system just after the close of that fiscal year.


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Federal Reserve Bank of St. Louis

787

788

Monthly Labor Review—A pril 1940

ments had matured. There was a surplus of over $4,260 in the
General Insurance Guaranty Fund. The admitted assets of the
system were almost $288,000.
Interest in the extension of this system of economic security,
whereby wage earners and others with small incomes may purchase
low-cost life insurance “over the counter” in approved savings banks
has been stimulated by testimony at recent hearings before the
Temporary National Economic Committee. At the Sixth National
Conference on Labor Legislation held in Washington, D. C., November
13, 14, and 15, 1939, at the invitation of Secretary of Labor Frances
Perkins, a resolution was adopted urging “labor officials, civic groups,
employers, and labor organizations actively to consider the possibilities
of legislation which would make savings-bank life insurance available
in the 46 States whose citizens cannot as yet purchase this type of
insurance protection.”
Origin and Purpose
The idea of combining the functions of savings banks and life in­
surance was first proposed in this country as early as 1874. It was
not until 1905, however, when the mismanagement of the life-insurance
business became so flagrant that a New York State legislative com­
mission of investigation was appointed, that public interest was
directed to this system of insurance as a means of eliminating op­
portunities for abuses. As a result of the facts brought out in the
investigation, and largely through the efforts of Louis D. Brandeis
(later of the United States Supreme Court), aided by well-known
citizens and labor and civic organizations, the Massachusetts Legis­
lature in 1907 passed the law which inaugurated the Massachusetts
system of savings-bank life insurance. The New York law allowing
savings banks to establish life-insurance departments was enacted in
1938 and became effective January 1, 1939.
Savings-bank life insurance was designed, among other things, to
reduce the cost of life insurance by eliminating solicitors and their com­
missions; to secure for policyholders cash surrender, loans, extended
insurance, paid-up insurance, and like privileges earlier and under more
favorable terms than in other private insurance; to reduce the propor­
tion of lapsed policies by eliminating overselling of life insurance; and
to provide a method of selling such insurance which would not add to
the profits of private individuals engaged in the business.
Operation of the System
The savings-bank life-insurance system is practically the same in
both States. In Massachusetts mutual savings banks, and in New
York savings banks incorporated under the New York law, are em­
powered to establish insurance departments on approval of the State

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Federal Reserve Bank of St. Louis

Savings-Bank Life Insurance

789

insurance commissioner, or superintendent, and the State banking
commissioner, or superintendent. Such approval is contingent on the
provision of a special expense guaranty fund and a special insurance
guaranty fund. Thereafter the insurance departments of such banks
operate subject to the supervision of the two State officials named.
In their operation insurance departments must be independent of the
savings departments of the banks as far as possible, with separate
books and assets, though the executive management of both depart­
ments is vested in the board of directors and executive officers of the
bank. Funds of the insurance departments are to be invested in the
same classes of securities and in the same manner as deposits in the
savings departments. Savings-bank life insurance is, therefore, not
State insurance, but its sale is under the supervision and regulation of
the State.
In both Massachusetts and New York the funds of insurance
departments of the savings banks are subject to the same State taxes
as the funds of the life-insurance companies. Prior to November 1,
1939, savings banks’ life-insurance funds in Massachusetts were taxed
on the same basis as the deposits in the savings banks.
General direction of the insurance departments of the individual
banks is lodged in the Division of Savings Bank Life Insurance, with
its medical and actuarial directors, and a general staff. The General
Insurance Guaranty Fund is an incorporated body, the members of
which are appointed by the Governor in Massachusetts, and by
the superintendent of insurance with the approval of the Governor
in New York. This fund has the ultimate responsibility for the
administration of the system.
Sale of Insurance
In both Massachusetts and New York the sale of savings-bank life
insurance is restricted to residents of the State or persons regularly
employed therein. Insurance already purchased is not affected by
removal of the policyholder from the State. In Massachusetts the
usual ordinary and group life-insurance policies and annuity contracts
are available. These include straight life insurance, limited-payment
life insurance, renewable term insurance, group insurance, endowment
policies, and annuity contracts. Children aged 6 months or more
may be insured under any of the regular forms of insurance. The
New York law also authorizes these various types of insurance, but
annuity contracts had not been made available by the end of 1939.
Applications for insurance are limited to $1,000 in any one bank.
In Massachusetts a person may buy insurance in any number of banks,
so that, with the present number of banks, the maximum insurance
obtainable under the law would be $28,000. In 1938, however, an
arbitrary maximum of $25,000 was adopted by the system. In New
York, on the contrary, there is a limit of $3,000 on such insurance

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Federal Reserve Bank of St. Louis

790

Monthly Labor Review—A pril 1940

in the State. Annuity contracts are limited to $200 a year in both
States. In Massachusetts this maximum is obtainable from any
or all banks if purchased by installments. The total amount of
annuity income purchasable by a lump sum, however, has, for several
years, been arbitrarily limited to $600 a year.
In the main, savings-bank life insurance is purchased directly from
the savings banks or their agencies in person or by mail. No agents
or solicitors are employed for its sale, and no sales commissions are
paid to anyone. Education in the advantages of such insurance is
promoted in Massachusetts by the Division of Savings Bank Life
Insurance. It employs two “ instructors” to visit industrial estab­
lishments, when requested by the employer, and to give the employees
information as to the opportunities afforded. These instructors are
paid by the Division and are not under the direction of the banks.
Advantages to the Policyholder
Savings-bank life insurance is made available at very low cost com­
pared with other life insurance. It is easy to obtain, as application
may be made not only to any of the savings banks issuing insurance
policies but also at agency banks which are located in various parts of the
State and, in Massachusetts, at other approved agency bodies, such as
employers, credit unions, etc. Applications may also be made by mail.
Insurance may be bought in small amounts and the premiums may
be paid either monthly, quarterly, semiannually, or annually. It may
be combined with regular savings on a weekly basis, if so desired.
The cost of the insurance, which varies with the amount of insurance,
the kind of policy, and the age, is decreased by a yearly dividend, com­
mencing with the first year. These dividends are relatively high when
compared with those of other private insurance companies, owing to
the fact that no solicitors are employed, and to low mortality experi­
ence, economical management, and low overhead.
A savings-bank life-insurance policy is nonforfeitable in Massa­
chusetts at any time after it is issued if the legal reserve is $2 or more,
and in both States is nonforfeitable in any case after 6 months’ pre­
miums have been paid. In Massachusetts the full legal reserve,
without any surrender charge, is then available to the policyholder
as cash surrender value, or as paid-up or extended insurance, as the
policyholder may elect. The full legal reserve on the policy is also
available as a loan value after 1 year’s premiums have been paid.
In general, this is true in New York. Similar nonforfeiture values,
subject to varying surrender charges, are now usually available after
2 years’ premiums have been paid on ordinary policies of the companies.
Savings-bank insurance is safeguarded by the same requirements as
to legal reserves, based on conservative mortality tables and rates of
interest, as apply to all legal reserve life-insurance companies operating

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Federal Reserve Bank of St. Louis

Savings-Bank Life Insurance

791

in the State. There is also the safeguard of the surplus funds held by
each insurance department of each bank and the assets of the General
Insurance Guaranty Fund. The General Insurance Guaranty Fund
in both systems has been created by payments of 4 percent of all
premium income. The fund is available to all banks in the system,
if needed, because of actual or possible impairment of reserve. In
Massachusetts no bank has ever had occasion to call upon this fund
and payments to it were discontinued in 1915. Since then it has about
doubled in amount by interest accretions. The trustees of the General
Insurance Guaranty Fund can at any time require payments to the fund
to be resumed. New York also provides for reduction or discontinu­
ance of payments to this fund when it reaches a specified amount, and
for resumption of payments thereafter, if necessary. Equalization of the
ratio of mortality claims among all the banks through the General In­
surance Guaranty Fund reduces the possibility of especially unfavorable
mortality losses of a particular bank affecting that bank disastrously.
Type of Policyholders
Applicants for savings-bank life insurance represent in the main
wage earners and others in the low-income groups. An analysis of the
occupations of applicants in Massachusetts over a period of 4% years
revealed that about 50 percent were wage earners, clerical workers, or
farmers, 12 percent were professional or business people, 25 percent
were homemakers and students, and 13 percent could not be classified
in any of these groups.
The following classification of applicants in New York by occupa­
tion is based on the issues of one of the banks:
Percent

Artists___________
Bookkeepers______
Building employees.
Butchers_________
Cashiers_________
Chauffeurs_______
Chemists_________
Children (under 15)
Chiropodists______
Clerks___________
Doctors__________
Domestics________
Engineers________
Executives_______
Housewives_______
Insurance________
Laborers_________
Lawyers_________
Manufacturers____
Mechanics________
Machinists___ ____

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Federal Reserve Bank of St. Louis

0.
3.
3.
.
.

3
3
9
1
3

1. 0
.7
14. 2

.2
13. 0
1. 4
1. 4
3. 2
5. 9
9. 5
.7
1. 6
2. 1

.2
.8
.8

Percent

Merchants_________
Musicians__________
Nurses_____________
Opticians__________
Patrolmen__________
Photographers______
Plumbers___________
Printers____________
Public service_______
Reporters_______ _
Restaurant employees
Retired____________
Salesmen___________
Seamen____________
Social workers______
Stenographers _______
Students___ _______
Tailors_____________
Teachers___________
Unemployed________
Weavers___________

3.
.
.
.
.

7
3
7

1
7

.2
.1
.9
3. 9
. 1

1. 2
.1
9. 5

.6
.2
1. 0
3. 4
3. 3
2. 7
2. 2

.1

792

Monthly Labor Review—April 1940

The proportion of policies issued for small amounts also indicates
that the buyers are persons with comparatively small incomes.
About 78 percent of the applicants in New York in 1939 applied for
$1,000 or less. Policyholders have not, as a rule, been depositors of
issuing banks. In New York, based on available statistics, less than
one-tenth of the policyholders were depositors of the bank when they
applied for insurance, and over half were not depositors in any savings
bank. One New York bank reported that about 16 percent of its
applicants now have savings deposits.
Growth of System
MASSACHUSETTS 4

The first savings bank in Massachusetts to establish an insurance
department was a small bank in Whitman, which opened it in June
1908, a full year after the passage of the law. By 1912, 3 other
banks had entered the system; between 1922 and 1928, 6 more were
added; 11 joined between 1929 and 1931, and 7 between 1934 and 1939.
At the beginning of 1940 there were 28 savings banks in the system,
2 having become issuing banks November 1, 1939, just after the close
of the fiscal year.
The order in which the 28 banks entered the system and the date
they began insurance operations were as follows:
T able 1.—Order in Which Savings Banks Entered Insurance System of Massachusetts,
and Dates of Beginning Operations
No.
1
2
3
4
5
fi
7
8
9
10
11
12
13
14
IS
lfi
17
18
19
20
21
22
23
24
25
20
27
28

Name of bank

Location

Date

W hitman_______
B rockton.. ____
Pittsfield__
____do_ _____ _ _
Lynn.
____do. _________
North Adams____
Cambridge___ _
Boston _ ______
Waltham __ . . .
Lowell__________
Boston____ _____
____do_ _ _____
C am b rid ge..____
New Bedford . . .
Arlington. _____
Uxbridge_____ _
Beverly___ . _.
B o s t o n ..____ . . .
Leominster. ___
Fall R iver. _____
Canton______ . . .
Plym outh_______
Newton_____ . . .
Boston__________
Brockton.. ____
Greenfield___ ..
Boston_______ ..

June 22,1908
N ov. 2,1908
Aug. 1,1911
July 15,1912
N ov. 1,1922
Do.'
Feb. 29,1924
N ov. 1,1924
N ov. 1,1925
Do.'
N ov. 1,1929
Do.
Do.
Mar. 1,1930
July 15,1930
N ov. 1,1930
Mar. 10,1931
June 1,1931
Apr. 14,1931
June 1,1931
N ov. 1,1931
N ov. 1,1934
Do.
Mar. 1,1937
N ov. 1,1938
Do.
N ov. 1,1939
Do.

1 Called the North End Savings Bank until 1928.
2 Although the W ildey Savings Bank commenced operations before the Beverly bank, they both estab­
lished the departments at about the same time.

* Data for 1938 and 1939 were furnished by Judd Dewey, D eputy Commissioner of Savings Bank Life
Insurance of Massachusetts. An extended discussion of the Massachusetts Savings Bank Life Insurance
System and data on its operation from 1908 to 1934 were given in Bulletin No. 615 of the U. S. Bureau of
Labor Statistics.


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Federal Reserve Bank of St. Louis

793

Savings-Bank Life Insurance

In addition to the issuing banks and their branches, applications
may be made to numerous approved agencies throughout the State,
including other banks, agencies operated by employers, credit unions,
settlement houses, certain private individuals, etc. In June 1939
there were 517 such agencies.
This new system, it will be observed, grew slowly, over half of the
banks having entered during the last 10 years. The aggregate amount
of insurance also increased slowly until 1918, less than $10,000,000
being then in force. After that year, the increase was more rapid,
rising to more than $93,000,000 in 1933. In 1938, the total amount
of insurance in force amounted to nearly $155,000,000, constituting
more than 3 percent of all the insurance in force in the State. In
1939 this amount increased to more than $173,000,000.
The growth of savings-bank life insurance in Massachusetts, by
5-year periods, may be seen in table 2:
T able 2.—Growth of Savings-Bank Life Insurance in Massachusetts, 1908 to 1939,
by 5-Year Periods

Year

Number
of banks

Premium
income
received

Number
of policies
in force

Amount of
insurance
in force

Total paid
to policy­
holders
in year

1
4
4
6

$368
124,205
317,476
714,774

282
8,054
20, 707
41,283

$114,953
3,' 150,806
9, 783,239
25,677,730

$28, 797
132,244
347, 570

$26,049
430i 429
1,202,933
2,834,090

10
21
24
i 28

1,899,177
3,256,410
4, 787,124
5,150,026

70,212
103,763
172,004
192,817

57,836,763
93,186,980
154,788,376
173,123,657

849,360
2,057,692
2,674, 570
2, 801, 278

7, 579, 709
15,171,274
28,870,867
31,822,825

1908_____________________
1913________________________
1918________________________
1923________________________
1928________________________
1933________________________
1938___________________ _____
1939________________________

Admitted
assets

1 2 banks entered the system as of November 1, 1939, and therefore the data presented in the table are for
26 banks.

The average amount of insurance per policy did not show any steady
increase until 1916, when the amount of insurance obtainable from
each bank was increased from $500 to $1,000. From 1916 to 1931
the increase was fairly continuous. In 1938 the average amount per
policy reached $900 and was $898 in 1939. The average amount of
insurance per policy from 1908 to 1939, by 5-year periods, was as
follows:
1908________
1913________
1918________
1923________

______ $408
______ 391
______ 472
______ 622

1928________
1933________
1938________
1939________

______$824
______ 898
______ 900
______ 898

During the 31 years of operation, premiums from policyholders of
savings-bank life insurance aggregated over $53,000,000 and the total
income of all the banks was about $63,000,000. In 1939 the pre­
mium income for the fiscal year was over $5,000,000 and the total
income was nearly $7,000,000.

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Federal Reserve Bank of St. Louis

Monthly Labor Review—A pril 1940

794

More than $28,000,000 was paid to policyholders in the settlement
of claims, endowments, annuities, cash surrender values and dividends
during the 31-year period 1908-39. The expenses of operation
amounted to about $3,750,000 and the total disbursements to over
$32,000,000. In 1939 almost $3,000,000 was paid to policyholders
in settlement of claims, annuities, endowments, dividends, etc.
Over $1,000,000 of this was in dividends. Expenses of operation
during the year amounted to slightly over $673,000. The total dis­
bursements for the year amounted to almost $4,000,000.
Income and disbursements of the savings-bank life-insurance system
of Massachusetts in 1939 were as follows:
T able 3.—-Income and Disbursements of Massachusetts Savings-Bank Life-Insurance
System, 1939
Item

Amount

Disbursements

Income
Level premium:
Level premium------ . ---------------- $3, 824,296.21
268,066. 42
Group, including 1-year term---Dividends to purchase paid-up addi­
428, 553.90
tions___________________________
629,109.93
Annuity premiums------------- ---------Total premium income_______
Consideration for supplementary con­
tracts_________________ _________
Dividends left to accumulate at in­
terest___________________________
Interest and rents_________________
Collection fees received from other
banks____________________ _____
Unification of mortality-----------------Miscellaneous income_____________
Profit on sale of securities_________
Accrual of discount on bonds______
Increased book value ledger assets. __
Total income_____ ____ _____

Amount

Item

5,150,026.46

Matured endowments_____________
Annuity payments—

-------

-

.

Payment of supplementary contracts.
Dividend accumulations surrendered.

135,395.90
47, 228. 61
1,204,280.37
31,456. 24
48,882.36
11,769.94
83, 651.08
6, 703. 64
62,353.56
6, 781, 748.16

Reimbursement to State_______ ___
Social security and unemployment
Advertising, printing, postage, e tc ...
Furniture and fixtu res... _
. . .
Expenses on foreclosed real estate___
Unification of mortality____________
Miscellaneous expenses_____________
Other disbursements_______ _______
Interest on special expense guaranty

$723, 328.57
148,563.00
11,600.00
613, 241. 26
404,825. 67
1,021,231.56
44,788.91
16,323.50
78,393.44
46,986.74
171,379.35
28,021.99
116,531.78
49,104. 81
6, 582.01
60,865. 62
11,945. 60
78, 622.83
48,882.36
24, 580.96
8,647.78

Miscellaneous interest paym ents____
Loss on sale of securities____________
Amortization of bonds------ ------------Reduction of book value ledger assets.

362. 50
50.58
31,853.98
62,600.27
113,345.25

Total disbursements--------------

3,922,660. 32

The total admitted assets of the entire system at the end of the
fiscal year 1939 amounted to $31,822,825. The banks had aggregate
legal reserves of $27,627,578 and the total surplus of the banks and
the General Insurance Guaranty Fund amounted to $2,293,596.


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Federal Reserve Bank of St. Louis

795

Savings-Bank Life Insurance
NEW YORK 5

The New York savings-bank life-insurance system began operations
January 1, 1939, and has thus been in operation only a little over a
year, but its success already seems assured. At the beginning of 1940
seven banks had been licensed to issue life-insurance policies and seven
additional banks had become agency banks. In the first year of
operation banks representing 10 percent of the savings banks of the
State were therefore engaged in savings-bank life insurance.
The seven issuing banks in the system and the date of their enteringare given in table 4:
T able 4.—Savings Banks in New York Licensed to Issue Life Insurance, and Date
When Licensed

No.
1

fi
7

Name of bank

Location
Brooklyn _ ____
_ do.
. .
New York_____
R ochester____
Troy . _ ______
N ew York_ ___
Brooklyn______

Date when
licensed
Jan.

6,1939
Do.
Do.
Jan. 24,1939
Apr. 6,1939
Apr. 18,1939
Oct. 30,1939

At the end of the fiscal year, October 31, 1939, the paid for insurance
in force was 7,006 policies for $5,836,200 insurance, and on Decem­
ber 31, 1939, there were 7,949 policies for $6,605,900 insurance, or an
average per policy of $831.
The six banks doing business at the end of the fiscal year, October
31, 1939, had received a total of $122,438 in premium income during
the 10 months’ operation of the system,6 the total income being
$277,631. Even in this short period $5,506 had been paid to policy­
holders in the settlement of claims and surrender values. No endow­
ments had matured. Expenses of operation totaled $20,391, but
included $13,284 for medical examinations of persons who had come
into the system that year. Disbursements amounted to $30,481.
The income and disbursements of the New Tork savings-bank lifeinsurance system at the end of the fiscal year for the first 10 months of
operation were as follows:
* Data for the fiscal year 1939 were furnished by Paul R. Taylor, D eputy Superintendent of Savings Bank
Life Insurance of New York.
• N ot all the banks were in operation the entire 10 months. (See table 4.)


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Federal Reserve Bank of St. Louis

796

Monthly Labor Review—April 1940

T able 5.—Income and Disbursements of New York Savings-Bank Life-Insurance
System, 1939 1
Item

Amount

Item

$122,437.56

Death claims______________
Surrender v a lu e s __________________
Medical fees and inspection of risks___
Collection fees______________________
Advertising___________
Salaries___ ____ ___________ ______

Disbursements

Income
Interest on loans, bank deposits, bonds,
Contribution to

special

3,265. 26

insurance
120, 000.00

Contribution

to

special

Amount

expense

Increase ir> book value of bonds

_____

30,000. 00
' 601.18
283.79
1,038. 94
4.59

rayrnents to General Insurance Guaranty Fund____
.
_ ______
State taxes on premiums____________

277,631. 32

Decrease in book value of bonds______
Total disbursements,, , ______

$5, 500. 00
5.58
13, 284. 39
731. 70
771. 54
2 2, 407.07
3 100. 00
1,208.73
4,371.40
1,763.01
125.00
155.32
57 08
30,480. 82

1 Fiscal year; 10 months’ operation of system, notjmcluding General Insurance Guaranty Fund.
24 banks.
3 1 bank.

The surplus in the General Insurance Guaranty Fund was $4,263.55.
The admitted assets of the entire system were $287,689.96.
The savings-bank life-insurance policyholders in New York were
paid their first dividends after 1 year of operation. The dividend
varied with the type of policy, age, etc., but the total dividends are
reported to have averaged more than 4 percent of the premiums
collected.


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NEW TECHNIQUES FOR GETTING JOBS 1
VARIOUS ingenious labor-marketing procedures—byproducts of the
great depression—have been developed to offset the extraordinary
difficulties experienced by jobless people in their search for employ­
ment. Among these new and non-profit-making schemes are the
“man-marketing clinic,” in which unemployed persons from various
occupational classes act as consultants to each other at conferences
presided over by a leader experienced in business management; the
“forty-plus club” composed of mature unemployed persons who have
been competent executives with fairly substantial salaries and under­
take to sell the services of their fellow club members instead of their
own; and the Job Hunters’ Organization, made up of a group of young
persons in quest of work who engage in a concerted drive to place
themselves. Brief reports on the operations of these constructive and
successful programs are here reviewed.
Man-Marketing Clinics 2
The first Man Marketing Clinic was started in New York City in
1935 by a merchandising consultant, Sidney W. Edlund, as a result of
his interest in the labor-marketing problems of various unemployed
people.
The clinic is non-profit-making and its leadership is voluntary. Soon
after it was organized, the Sales Executives Club of New York became
interested in the experiment, and it has since been carried on under
the auspices of that organization. The club has cooperated effectively
with the clinic and many club members have made themselves avail­
able as leaders. Members of the club also send clients, although clinic
membership is not restricted to friends of members of the club.
The objective of the clinic is to aid men and women to obtain the
kind of employment for which they are fitted. Attendance at the
clinic aids those who already have jobs to get better ones for which
they are qualified. The clinic is also helpful to those who desire to
make more of their present jobs. By focusing attention on collecting
evidence of a job well done, it centers an individual’s thought on his
work, with the result that he does better work.
According to the clinic manual, the reason for the individual’s lack
of success in obtaining a satisfactory job includes one or more of the
following difficulties:
1. He may not know what he wants to do.
2. He may not be qualified for the job he wants.
3. He may be facing almost prohibitive odds.
1 Prepared by Mary T. Waggaman, Bureau of Labor Statistics
2 Information for this account of man-marketing clinics was furnished by Mr. Sidney W. Edlund. Those
interested in organizing man-marketing clinics may address him at Riverside, Conn.


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Federal Reserve Bank of St. Louis

797

798

Monthly Labor Review—A pril 1940

4. He may have no plan to help him get such a job.
5. He may not know how to sell his services.
6. He may not have the desire or courage to do the necessary work to reach his
objective.

The first three are vocational problems; 4 and 5 are merchandising
problems; and 6 calls for character. Carried on properly, the clinic,
according to the manual, should be able to aid any person to reach his
goal regardless of impending reasons. However, the clinic’s particular
interest is focused on the merchandising problem. Fundamentally,
the clinic is not a vocational guidance service nor an employment
service, although, if an individual has no clear notion of what he
wishes to do, or if he is not qualified for the job he is seeking, his voca­
tional problem must be considered before his services can be properly
merchandised. Furthermore, when a member of the clinic knows of a
job in which he is not interested himself, it is quite natural for him to
acquaint others in his group of the employment opportunity. These
procedures, however, are side issues in the clinic.
Thousands who have attended the clinic testify that it has filled
a vital need in clarifying their objectives, in determining a definite
method of procedure, in lining up their campaigns, in getting sufficient
coverage, and in landing on their deserved level.
Before 1938, the clinic had had little publicity, although some
7,000 persons had attended it. Among those aided by this service
have been office boys, clerks, stenographers, copy writers, commercial
artists, editors, sales and advertising managers, department and
chain store managers, engineers, and factory superintendents. It
has helped young people recently graduated from school and men
over 60 years of age; those whose experience was of such character
that, even without the clinic, they would have reached their job
goal, and those who had had no work over a long period and were in
such a state of mind that they were unemployable until their morale
could be built up. The clinic’s basic principles may be applied to
getting any type of job—from that of common laborer to the presi­
dent of a corporation.
Based on experience with the clinic, its organizer has come to
believe “that almost every man or woman can get the job he wants,
for which he is qualified, provided only that he makes the proper
approach to a sufficient number of logical prospects.” In certain
instances this takes considerable time as well as courage. However,
Mr. Edlund holds, if a person makes use of the principles suggested
by the clinic and perseveres in his campaign, he will usually get his job.
M ET H O D S A N D SC O PE OF T H E CLIN IC

In helping people to organize their thinking and their sales cam­
paigns, those attending the clinic discuss each case under the leader­
ship of a competent business executive. Any member is privileged

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Federal Reserve Bank of St. Louis

New Techniques For Getting Jobs

799

to outline to the group, verbally or (preferably) in writing, his experi­
ence, the kind of job he desires, what steps he has taken to get it,
and any problems he has been facing in this connection. The value
of written presentation is stressed by the clinic on the ground that
when an individual puts his problems in writing he has had to think
them through more constructively. Of course, for some workers this
is not practicable. The other group members are told that they are
expected to act as consultants in the case; to comment frankly and
freely on the job seeker’s qualifications, plans, and methods; to sug­
gest sources of leads; and to criticize his letters of application and
sales presentations. The value of open and honest criticism is
strongly stressed.
The 40 to 150 persons attending any meeting of the original man­
marketing clinic are ordinarily representative of a good cross section
of business men and women.
The pioneer clinic has, as a rule, been divided into two sections,
one for those attending for the first time and the other for those who
understand the clinic’s objectives and methods.
In the first section the newcomers are stimulated to intelligent
action in the solution of their employment problems. They are told
that the work of the Man Marketing Clinic has led to the conviction,
already referred to, that almost anyone can get the job he wants, if he
is fitted for it, and if he “makes the proper approach to a sufficient
number of logical prospects.” The principles and methods to be
used in obtaining the jobs they desire are explained, and members
are encouraged to make notes, ask questions, take part in the discus­
sions, and prepare material for criticism. The use of the clinic text­
book is explained. Members are also asked to note the details of
any employment opportunities which come to their attention but
which may not interest them, because another member of the clinic
might be interested and qualified for the opening.
At the second section, or main meeting of the clinic, material for
consideration is called for. Ordinarily, from 5 to 10 cases can be
handled effectively in a 3-hour meeting. If the number on hand is
too great to be dealt with properly in that time, the clinic may be
divided into 2 or more groups or 2 or 3 simple cases may be taken up
in the newcomers’ section.
Among the suggestions made in the clinic manual for conducting
the main meeting are the following:
1. When there are not enough written cases for consideration in a
single meeting, verbal cases should be called for.
2. Progress reports should be requested from those engaged in
actual campaigns. As in the newcomers’ session, those who know of
job openings in which they are not interested themselves should be
asked to report such opportunities.
217593— 40-------2


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Federal Reserve Bank of St. Louis

800

Monthly Labor Review—A pril 1940

3. Members should be asked to indicate, by holding up their
hands, how many expect to present material at the next meeting.
4. Much of the clinic’s effectiveness will be lost if the meetings are
not held at regular weekly intervals. If possible, the session should
be scheduled for the same time and place each week so that members
will drop in through force of habit. The return of graduates to the
clinic is highly desirable.
5. When the attendance is not too large, members should be intro­
duced to each other. When the sessions are held in the evening an
informal supper meeting place may be selected for those who wish
to come.
6. If the attendance is not satisfactory, a story may be released to
the local paper or to a club house organ; members may be asked to
tell others about this job-getting service; or cards of admission may
be mailed to members or to others who probably know men needing
the kind of aid the clinic can give.
The clinic’s founder emphasizes the importance of increasing its
membership among those who are not seeking jobs. Some members
of the sponsoring organization attend the meetings from time to
time and others attend regularly. The quota of employed persons
keeps the clinic from being considered a jobless group. In smaller
communities where everybody knows everybody else, this employed
quota is highly important. When the emphasis is placed on advance­
ment to the best position a man is able to hold in his present employ­
ment or elsewhere and when a number of those attending the clinic
have satisfactory jobs, persons who are unemployed usually no longer
hesitate to attend. If they continue to hesitate, their cases can be
dealt with anonymously; in this way they can attend the clinic and
get the benefit of the reactions without being identified.
THE LEADER’S ROLE

Among the many functions of a clinic leader is the encouragement
of wide participation in the discussions. If a member can give con­
structive counsel to another, his own morale will be strengthened and
this will have good effect on his own campaign. The leader will also
summarize, clarify, and supplement suggestions made by consultant
members.
He will realize the importance of analyzing the job sought, and he
will be absolutely frank, where the person involved needs it and can
stand it. His frankness, however, should always be tactful and
kindly. He should constantly stimulate members to carry out their
campaigns consistently and intelligently and help them to maintain
their courage and hope.
The clinic’s purpose being to help individuals to help themselves,
the leader should make it clear at each conference that clinic members
are merely consultants to the person whose case is under consideration.

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New Techniques For Getting Jobs

801

The latter should be left free to use his own judgment in the matter of
taking suggestions. Each case is treated as a merchandising problem.
Hence, the clinic cooperates, but does not compete, with employment
offices. Several employment agencies have sent men to the clinic
who have had a good background but were not strong on selling their
services.
SELECTION OF LEADERS

In forming a man-marketing clinic, the basic requirement is a leader
with a strong desire to aid others, who has a sympathetic understand­
ing of the difficulties which confront most persons when they seek a
new position, and who has a fair knowledge of business. It is con­
sidered advisable also to have several persons in reserve who may be
called upon to act as leaders.
Among those especially adapted for leadership are advertising men,
merchandising men, business consultants, company executive officers,
and personnel men. Engineers and accountants have also done good
service as leaders. Indeed, the original man-marketing clinic has
found no difficulty in getting leaders and has not been able to use all
the capable businessmen who have volunteered for this work. The
idea of the clinic has an appeal for businessmen, as they see in it a
chance to be of service to their fellow men and their community and
an opportunity to expand their own experience in conducting con­
ferences, in handling men, and in applying their own knowledge to a
variety of cases beyond the boundaries of their own industries.
Many executives feel that they give a great deal more time than they
can well afford to people in search of jobs. They realize that with the
help of clinic principles and methods, and reinforced by a group of
clinic members all bent on a solution for the same job-getting prob­
lems, they can supply that constructive aid with considerable satis­
faction and in much less time. Since the clinic meets each week,
correspondence is not necessary. Cases are ordinarily handled only
at the clinic.
SPONSORS

Although a sponsoring organization for a clinic is not essential, it is
advisable to have one; for example, an advertising or sales club, a
group of Rotarians, a local chamber of commerce, a Y. M. C. A. or
Y. W. C. A., a school or college. An ideal backing is often a combina­
tion of such agencies. If the clinic operates under the auspices of
some club or other organization, its services may or may not be
available only for members or those recommended by them. The
Man Marketing Clinic in New York, although sponsored by the
Sales Executives Club, does not restrict its services to the members
of the club and its friends. The clinic does not exclude apparently
hopeless cases, but very few of them come to its meetings, as the

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Federal Reserve Bank of St. Louis

802

Monthly Labor Review—A pril 1940

character of its service seems to have no appeal for them. A small
number of persons who at first seem hopeless do attend the sessions
and get sufficient help to enable them eventually to attain their
industrial or commercial level; others may fail to appear after a few
meetings.
APPRAISALS OF THE CLINIC

A corporation’s vice president in charge of operations, speaking of
the clinic, declared that—
This movement might well become a powerful factor in correcting the wide­
spread maladjustment left in the wake of the depression. Incidentally, the Man
Marketing Clinic is a great developer of men, both those who come to aid, as well
as those who come to be aided. No theatrical performance offers more dramatic
interest than these sessions which combine the most fascinating studj’-, “ Market­
ing,” and the subject th at is most packed with human interest, “ People.”

According to an advertising manager, “The clinic really performs
miracles. Those blind to their opportunities learn to see. Man after
man gets the job he wants, frequently a better one than he has pre­
viously held.”
The assistant vice president of a large publishing company said:
As a member of the employment committee of the Sales Executives Club, I was
brought in close contact with the clinic—worked with it to some extent, as you
know. It tells its own story dramatically, much better than can be told through
many adjectives. It has left a trail of good deeds that is significant and outstand­
ing even in blase M anhattan. Probably its percentage of successes is greater
than any undertaking with which it might be compared, largely due to the original
technique employed.
The plan is basic enough th at it could be employed in any sizable business
community where sincere, altruistic cooperation can be recruited from the better
class of business leaders.

The director of the Placement Service for Cornell University, New
York City, reports that he has sent several men to the Man Marketing
Clinic and has had “the opportunity of observing closely their atti­
tude before and after their participation in the meetings. * * *
Those who have attended faithfully and who have done with zest the
rather heavy work which is recommended, have returned inspired
with the belief that they can obtain the job they want. * * *
They are better able to decide what work they are best fitted to do
and can apply to selling themselves the accepted methods of selling
any product. Some of these men already have proved the worth of
this training by getting for themselves the best jobs of their careers.”
THE INCREASING SCOPE OF THE WORK

The New York Man Marketing Clinic has now been incorporated,
with the basic purpose of extending its benefits to many thousands,
mainly by aiding individuals and organizations interested in estab­
lishing similar services. According to the organizer of the first man
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803

New Techniques For Getting Jobs

marketing clinic, Sidney Edlund, these services will find it helpful to
use the same name and get the benefit of an interchange of experience.
However, this name should not be used without written authorization
from the Man Marketing Clinic, Inc.
Organizations in a number of localities have already established
clinics along similar lines as reported in the accompanying table.
All follow the same policy of providing their help without charge to
anyone.3
Man-Marketing Clinics Reported in Operation, March 1940
Meeting
Name of clinic and city

Sponsored by—

Open to —
Place
Direct Mail Center, 17 East 42d
St.

Monday, 710 p. m.

Fordham University.

Anyone — preferably those recommended by
Sales Executives
Club members.
A n y m a n or
woman.

Room 744, Woolworth Bldg.

W ednesday,
7-9 p. m.

DePaul
sity.

College men and
women.

Moot Court, 15th
floor, 64 East
Lake St.
Suite 1403, 116
South Michigan
Ave.
Y. M. C. A _____

W ednesday,
7 p. m.

W e llin g t o n L . ........ do................. .
Goodman.
Downtown Y. M.
Downtown Y. M. A ny man _ .
C. A.
C. A.
U n i v e r s i t y o f Oklahoma seniors.
Oklahoma.

W ednesday,
7:30 p. m.
T u esd a y ,
7:30 p. m.

S ta te E m p lo y ment Building,
5th floor, 526
Penn Ave.

T u esd a y ,
8-10 p. m.

Miller’s Restaurant, 144 Fulton
St.
A n y m a n o r 615 Terminal Sales
woman.
Bldg.
Anyone.
.
. . Hartford Electric
Light Co.
Members only___ W e st C a th o lic
High School.

Monday, 710 p. m.

New York Man Marketing
Clinic, New York, N . Y.

Sales Executives
Club of New
York.

Fordham University Man
Marketing Clinic, New
York, N . Y.
University Man Marketing
Clinic, Chicago, 111.
Chicago Man Marketing
Clinic, Chicago, 111.

Junior Association
of Commerce.

Reading Man Marketing
Clinic, Reading, Pa.
B u ffalo M an M a rk etin g
Clinic, Buffalo, N . Y.
University of Oklahoma Man
Marketing Clinic, Norman,
Okla.
Pittsburgh Man Marketing
Clinic, Pittsburgh, Pa.

Man Marketing Clinic of the
Young M en’s Board of
Trade, N ew York, N . Y.
Seattle Man Marketing Clinic, Seattle, Wash.
Hartford Man Marketing
Clinic, Hartford, Conn.1
West Catholic Man Marketing Clinic, West Philadel­
phia, Pa.
York Man Marketing Clinic,
York, Pa.
Bay City Man Marketing
Clinic, Bay City, Mich.

Time

Univer-

Junior Chamber
of C o m m e r c e
and Woman’s
Club of P itts­
burgh.
Y o u n g M e n ’s
Board of Trade
of New York.
Earl J. Berg_____

A n y m an
woman.

A n y m an
woman.

or

or

Preferably younger men.

Tuesday,
p. m.

7

T u esd a y ,
7:30-10 p. m .
Thursday.

Do.
Alumni Association of the West
Catholic High
School.
York Chamber of A n y o n e... . ------ York High School. Monday.
Commerce.
Y. M . C. A _____
A. J. Armstrong _

1 Under auspices of Hartford Times.

The organizer of the first clinic, in a recent letter to the Bureau of
Labor Statistics, says:
I am hopeful that man-marketing clinics may be established throughout the
country. Inquiries are being received from many sources, including CCC groups.
The American I.egion is going to incorporate a copy of the manual [How to
Organize and Conduct a Man Marketing Clinic] in their data that they send to
their 17,000 posts, with the recommendation th at they consider the establishing
of clinics. The Y. M. C. A.’s plan to establish a number of such clinics.
3 A score of others are in process of being organized in other cities.


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804

Monthly Labor Review—A pril 1940

Forty-Plus Clubs
The forty-plus committee of the Sales Executives Club of New
York City set out in the midst of the depression to show employers in
the United States that it is to their own economic advantage “to forget
arbitrary age dead lines which discriminate against capable men
because of calendar age.” The committee emphasizes that the man
beyond 40 has greater actual experience, “is more responsible, more
skillful, and more to be relied upon in matters of judgment than
younger men who are still in their formative years. Measured ‘in the
heart’ he may be younger at 40 or 50 than the man half his age.”
This program was adopted by the National Federation of Sales
Executives Clubs, which met in Dallas, Tex., in 1938. Henry Simler,
president of the American Writing Machine Co., New York City, was
appointed chairman of the National Forty-Plus Committee and is still
serving in that capacity. According to national surveys made by
this committee and other available information, “the executive past
40 has a preponderance of evidence in his favor.” The National
Forty-Plus Committee does not hold that a man should be considered
just because he is 40 or more years old, but rather that he should not
be discriminated against entirely because of his age.4
The Forty Plus of New England was started in Boston, Mass., in
the summer of 1938, by Mr. Roland R. Darling. Whereas the cam­
paign of the Forty-Plus Committee of the Sales Executives Club of
New York had been the spare-time work of employed executives to
combat discrimination in the placement of older men, Mr. Darling felt
that the unemployed executives over 40 should organize themselves in
a mutual collective job-hunting body. No member of the Forty-Plus
of New England may “sell” himself but must endeavor to get a fellow
member of the organization a job. The club has no fees or dues.
The organization has also been assisting in creating similar groups and
about the middle of 1939, the National Forty-Plus Association was
incorporated under the laws of Massachusetts.5
The third-person selling practiced by forty-plus clubs has resulted
in an increase in morale and poise for those in need of jobs. In
solving the problem of selling the services of qualified mature execu­
tives, the organizational technique of the clubs is to train men “to
sell the employers the idea that Forty-Plus can provide able men who
have been accepted into its membership on the basis of their records
of performance.” 6
4 Information was furnished by Mr. Henry Simler.
5 Hired after Forty—Boston Style, by Ray Giles. Reprint from Reader’s Digest, December 1938, Pleasantville, N . Y ., and reprint from Boston Business, June 1939, Boston, Mass., published by the Boston
Chamber of Commerce.
9 Occupations—The Vocational Magazine, New York, February 1940, p. 377.


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New Techniques For Gelling Jobs

805

The October 21, 1939, issue of Business Week (New York) reported
that the Forty-Plus Club of New York had at that time 250 members,
one of the minimum requirements for membership being a previous
executive job paying at least $4,000. In March 1940 the club had
129 members and 177 alumni which it had helped to return to industry.
The New York Times of December 28, 1939, announced that the
new Forty-Plus Club of Pittsburgh, a mutual-aid association for job­
less business executives over 40 years of age, had started in June 1939
with 7 unemployed executives on its register, and that the members,
towards the close of 1939, numbered 175 and 41 alumni who had
been placed in industry.
The office of the club is operated by some of its members. Other
club members act as “salesmen” and canvass industries and business
houses of Pittsburgh in endeavoring to get positions for other “40plussers.”
pd
The Kansas City Star of Kansas City, Mo., reported under date of
November 28, 1939, that “members of the Forty-Plus of Greater
Kansas City have done such a good job talking up each other’s creden­
tials they almost have talked themselves out of membership.” Of
65 members, 45 have been placed. The group consists of men of 40
or more years of age “with executive ability and proved experience.”
In the past year the Men-Over-40-Club in Chicago has placed 115
men in jobs, the president of the organization states.7 He declares
that building up the morale of older workers who thought business
doors were no longer open for them “is one of the biggest things
we’ve done, and the thing we thought least about when we started a
year ago. We’ve broken down in a measure, too, the insidious prop­
aganda against hiring the man over 40.” This club has a marketing
committee (the sales department), and each member is allotted a
definite section of Chicago which he combs for possible jobs, calling
on the president of every company in the assigned area.
A partial list of forty-plus groups is given below:
Forty Plus of New England,
Boston, Mass.
Forty Plus of New England,
Brockton, Mass.
Forty Plus of New England,
Hartford, Conn.
Forty Plus of New England,
Portland, Maine.
Forty Plus of New England,
Salem, Mass.
Forty Plus of New England,
Springfield, Mass.
Forty Plus of New England,
Worcester, Mass.

Forty Plus of Western New York,
Buffalo, N. Y.
Forty Plus of Metropolitan Detroit,
Detroit, Mich.
Men Over Forty Club,
Chicago, 111.
Forty Plus of Cincinnati,
Cincinnati, Ohio.
Forty Plus Club, *
Cleveland, Ohio.
Forty Plus of Elmira,
Elmira, N. Y.
Forty Plus of Greenville,
Greenville, S. C.

^ Christian Science Monitor (Boston), February 20,1940, p. 7.


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Federal Reserve Bank of St. Louis

806

Monthly Labor Review—April 1940

Forty Plus of Indianapolis,
Indianapolis, Ind.
Forty Plus of Greater Kansas City,
Kansas City, Mo.
Forty Plus of Southern California,
Los Angeles, Calif.
Forty Plus of New Hampshire,
Manchester, N. H.
Miami Forty Plus,
Miami, Fla.
Forty Plus of Wisconsin,
Milwaukee, Wis.
Forty Plus of Northwest,
Minneapolis, Minn.
Forty Plus of New Jersey,
Montclair, N. J.
Forty Plus of New York,
New York, N. Y.

Forty Plus of Philadelphia,
Philadelphia, Pa.
Forty Plus of Western Pennsylvania,
Pittsburgh, Pa.
Forty Plus of the Northwest,
St. Paul, Minn.
Forty Plus of Georgia,
Savannah, Ga.
Forty Plus of Syracuse,
Syracuse, N. Y.
Forty Plus of Tulsa,
Tulsa, Okla.
Forty Plus of Canada,
Montreal, Que., Canada.
Forty Plus of Canada,
Toronto, Ont., Canada.
Forty Plus Club,
London, E. C. 4, England.

Job Hunters' Organization 8
At a meeting of the New England Regional Conference on Voca­
tional Guidance and Personnel at the School of Education, Boston
University, December 1-2, 1939, a report on the Job Hunters’ Organ­
ization of Boston was made. This organization is attempting to
solve three major problems confronting unemployed youth: (1) Inde­
cision in regard to the job desired; (2) ignorance of where to seek the
kind of employment wanted; and (3) inexperience.
The members of the association are under 30 years of age and are
banded together on a mutual-aid basis to assist the right person to
present himself to the right market by such methods as will result in
placement.
For the solution of the first problem the members of the organization
avail themselves largely of the systematic guidance services of the
Y. M. C. A., the Y. W. C. A., and similar groups. In finding the
wished-for employment these young people work through the various
city employment agencies and assist their fellow members in carrying
on extensive campaigns by mail, to cover thoroughly those businesses
where the best openings are known or thought to be available.
Lack of experience in actual work and in systematic job seeking is
compensated for in part in the organization by requiring members to
help in the association’s office 1 day per week. In this way these
young people aid each other in compiling mailing lists and composing
and typing sales letters.
Every week demonstration interviews provide drastic criticism,
interview methods and practices, and assistance in the securing of jobs.
8 Occupations—The Vocational Guidance Magazine (New York City, National Vocational Guidance
Association, Inc.), February 1940, pp. 375-377.


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HOUSING FACILITIES AND EXPENDITURES OF WAGE
EARNERS AND CLERICAL WORKERS 1
Summary
HOUSING expenditures of 14,469 white and Negro families of em­
ployed wage earners and clerical workers averaged $34 per month
in large cities of the Nation in 1934-36. This figure includes expense
for fuel, light, and refrigeration, rent, and rental value of owned homes.
Two-fifths of these families lived in 1-family detached houses; a fourth
lived in apartments, and the rest in semidetached, row, or 2-family
houses.
The home of the typical wage earner or clerical family with an
income above $500 had a bathroom with inside flush toilet and hot
running water. It had electric lights, and gas or electricity for cook­
ing. Two-thirds of the families had central h*eat in their homes.
Ice was used for refrigeration by two-thirds of these families.
Less than half but more than a fourth of the homes surveyed had
garages, telephones, electric refrigerators, and garden or lawn space.
Thirty percent of the families were home owners. All but a negli­
gible fraction of these lived in houses; a few lived in apartments of which
they were owners or part owners. Of the families who rented their
homes, 38 percent lived in houses, 24 percent lived in heated apart­
ments, and 38 percent lived in unheated apartments.
The total money expense of home owners for taxes, assessments,
interest, insurance, repairs, fuel, light, and refrigeration was $27 a
month. When the return on their capital investment is taken into
consideration, their total monthly housing expenditures were actually
$39. Families renting heated apartments paid slightly more, $35, for
rent, light, gas, and refrigeration. Rent, fuel, light, and refrigeration
both for families renting unheated apartments and for families
renting houses averaged $31 per month.
The data for white and Negro families have been combined in
accordance with the relative importance of nonrelief populations
in all cities with over 50,000 inhabitants. Averages for white fami­
lies and for Negro families, by region, have been weighted by the
numbers of whites and Negroes in metropolitan areas and cities
over 50,000 in each region. Allowance was made in the weights for
differences in the proportion of white and Negro families on relief.2
1 This article is the fifth in a series prepared by the Bureau’s Cost of Living Division, presenting a sum ­
mary of data collected in the Study of M oney Disbursements of Employed Wage Earners and Clerical
Workers in 1934-36 for 42 cities combined. Altogether, 14,469 white and Negro families are covered by this
report. No families with incomes below $500 or which had received any relief during the year were included
in the investigation. See Bureau of Labor Statistics Bulletins Nos. 636, 637, Vols. I and II, Nos. 639, 640,641,
and articles in the M onthly Labor Review for December 1939 and January, February, and March 1940.
The final report will be published as Bulletin No. 638.
2 For a more complete description of the weighting process employed in combining data for 42 cities, see
the appendix in forthcoming Bulletin No. 638.


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Federal Reserve Bank of St. Louis

807

808

Monthly Labor Review—A pril 1940

Total Housing Expenditure for All Families Surveyed
When the city worker talks of housing today, he is likely to think
not only of a roof over his head but also of heat in winter, refrigeration
in summer, and light the year round. To meet these needs, 14,469
families of wage earners and clerical workers in 42 large cities of the
Nation spent an average of a little over $30 a month or a fourth of the
total family expenditure.
In the case of tenant families, this figure includes rent and fuel,
light, and refrigeration. For home owners it covers fuel, light, and
refrigeration, as well as the money cost of maintenance and repair of
the house, but not payments on principal of mortgage or the cost of
permanent improvements to the home. The last two items were
treated as family savings or investment.
Almost a third of the families surveyed were home owners. For
these families, the money spent during the year for taxes, assessments,
interest, insurance, and repairs does not tell the whole story of current
housing cost. Especially for a family with a substantial equity in its
home, these current expenditures are frequently less than the amount
it would have to pay in rent to obtain an equally good house. The
difference between such estimated rental value and the money actually
paid for current housing expense is in fact income “ in kind” from the
family investment in the owned home. It is correspondingly ex­
penditure in kind for current housing, since the family has chosen to
take the return on its investment in the form of housing. This type
of housing expenditure averaged $12 a month per home-owning family
surveyed.3 When averaged with the expenditures for all families
studied, it raises the total housing expenditure for all families in the
survey from the $30 previously mentioned to $34.
Housing Expenditure by Tenure and Type of Dwelling
Housing expenditures differed not only for owners and renters but
according to the kind of dwelling occupied (see table 1). Tenants in
heated apartments had the highest average housing expenditure and
the smallest number of rooms.4 Tenants in unlieated apartments
had more space and paid lower rents; in general these apartments
3 Housing expenditure “in kind” was calculated as the difference between estimated rental value and
actual money expense for taxes, assessments, interest, refinancing charges, insurance, and repairs. The
home owners were asked to estimate the rental value of their homes. This figure was checked by field agents
with the real estate values of similar dwellings in the locality.
4 The difficulties involved in obtaining data on size of rooms made it seem inadvisable to attempt to ascer­
tain such information in the present investigation. Questions about window space and sunlight were
omitted for the same reason.


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Federal Reserve Bank of St. Louis

809

Housing Facilities and Expenditures

were located in older dwellings. In New York City, for example,
most of the families renting apartments for which heat was not fur­
nished by the landlord lived in “old law tenements” on Manhattan
and in lower Brooklyn and used stoves for heating purposes. A few
of the New York City apartments for which the tenant provided the
heat were in two-family flats in Queens and Brooklyn; these were frame
buildings with a separate furnace for each family.
T able 1.—Monthly Housing Expenditure and Average Number of Rooms, by Tenure
and Type of Dwelling, in 42 Large Cities
[Data cover 12 months within the period 1934-361

Class of occupant

Total
monthly
Rent or
housing rental value
expenditure
$39
31
35
31

3 $29
21
31
21

Fuel, light, Average
and refrig­ number of
eration ex­ rooms per
family
penditures
3 $10
3 10
4
10

6.4
4.1
3.8
4.7

1 98.8 percent of the home owners lived in houses.
} Includes $17 money expenditure, and $12 housing “ in kind” from investment in owned homes.
3 Assuming that expenditures for fuel, light, and refrigeration are the same for house owners and house
renters. Separate figures on such expenditures are available for families living in houses and paying for
heat separately from rent or ownership payments, but not by tenure.

Home owners had the lowest money expenditures, $27 per month,
but when the return on the investment is taken into consideration
they spent more than renters of heated apartments. They had
almost twice as much space, however, for this expenditure, and were
accordingly better able to provide privacy for family members, and
room for recreational activity and hobbies.
The fact that rented houses averaged a smaller number of rooms
than did the unheated apartments is rather surprising. It is explained,
to a considerable extent, by the relative scarcity of apartments and
the predominance of rented houses in the southern cities, and the
fact that many Negro families surveyed lived in small houses which
frequently had only one or two rooms.
The percentage of white and Negro families in each region living in
the several types of dwelling is shown in table 2. Here the predomi­
nance of houses among the Negro wage earners and clerical workers
in the southern and North Atlantic cities is clear, as is also the relative
importance of heated apartments in the northern and eastern cities.
It is because the majority of families living in apartments for which
they provide the heat were found in the North and East that the aver­
age expenditure for fuel and light reported by these families is as
high as that for families in houses.


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Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

810

PERCENTAGE OF FAMILIES LIVING IN
DWELLINGS OF SPECIFIED TYPE BY TENURE
1 9 3 4 - 1936
14,469 WHITE AND NEGRO FAM ILIES OF WAGE EA RN ERS
AND CLERICAL W O RKERS IN 42 CITIES GROUPED BY REGION
0

10

20

30

P E R C EN T A G E
40
50

60

NEW YORK
CITY

NORTH ATLANTIC
C ITIES

SOUTHERN
C ITIES

EAST NORTH
CENTRAL CITIES

WEST NORTH
CENTRAL CITIES

PACIFIC COAST
CITIES

VW A

FA M ILIES LIVING IN RENTED APARTM ENTS
f a m il ie s

l i v i n g in

R ENTED H O USES

F A M IL IE S LIVING IN OWNED HOM ES
U. S. BU R EA U OF L A B O R STATISTICS


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Federal Reserve Bank of St. Louis

70

80

90

811

Housing Facilities and Expenditures

T able 2.—Percent of Families Living in Dwellings of Specified ty p e and Tenure in
42 Large Cities Grouped by Region, 1934—36
Negro families

White families

All
famiies 1

Region

Living in
apartments
rented—

Living in
houses—

All
families 1

Heat­ U n­ Rent­ Owned 2
heated ed
ed
100.0
100.0
100.0
100.0
100.0
100.0

62.1
9.2
8.9
11.3
15.7
9.2

23.3
32.0
17.2
30.9
19.4
15.6

2.2
25.3
42.1
26.9
30.0
34.0

12.4
33.5
31.8
30.9
34.9
41.2

100.0
100.0
100.0
100.0
100.0

Living in
apartments
rented—

Living in
houses—

Heat­ U n­ Rent­ Owned 2
heated ed
ed
93.0
8.1
1.1
4.0
8.1

6.0
22.2
16.7
40.3
45.0

0
55.1
59. 5
41.3
22.0

1.0
14.6
22.7
14. 4
24.9

1 Omitting families who changed their tenure or type of dwelling during the year of the study.
Treating all home owners as if they lived in houses; 98.8 percent of white home owners and 100.0 per­
cent of Negro home owners lived in houses.
2

The differences in customary payments for housing and fuel, light,
and refrigeration in cities in different regions of the country are shown
in table 3. The highest payments were in New York City and the
lowest in the South.
T able 3.— Monthly Housing Expenditures 1 by Tenure and Type of Dwelling, in 42
Large Cities Grouped by Region, 1934-36
Negro families

White families

Living in
Renting
Living in
Renting
houses 3—
apartments—
houses 3—
apartments—
All
All
fam­
fam­
ilies 2 Heat­ Un­ Rent­
ilies 2 Heat­ Un­ Rent­
Owned 4
Owned4
heated ed
ed
heated ed
ed

Region

New York C ity________
North A tlan tic... _____
Southern. _
_________
East North Central____
West North Central____
Pacific________ ______

$40
33
26
29
28
27

$41
33
28
29
29
34

$31
33
25
29
29
31

$49
35
27
31
31
30

$55
41
35
39
38
35

$41
29
18
21
22

$42
25
23
27
23

$30
24
18
21
23

$31
19
21
23

$43
40
21
25
28

1 Including fuel, light, and refrigeration.
.
, .
,,,
, ,
2 Omitting families who changed their tenure or type of dwelling during the year of the study.
3 These figures have been computed on the assumption that fuel, light, and refrigeration expenditures of
house renters and house owners are the same. Separate figures on such expenditures are available for families
living in houses making payments for heat separately from rent or ownership payments, but not by tenure.
4 Including monthly value of income from investment in owned ¿homes and treating all home owners as
occupying houses. See table 2, footnote 2.

Housing Facilities for All Families Surveyed
A general picture of the quality of the dwellings of these average
families of employed wage earners and clerical workers is presented in
table 4. Three-fourths lived in houses and one-fourth in apartments.
Most of them had bathroom, electric lights, and gas or electricity for
cooking. Two-thirds had central heat but less than one-third had
telephones,

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Federal Reserve Bank of St. Louis

812

Monthly Labor Review—A pril 1940

T able 4.—Housing Facilities of 14,469 Families of IVage Earners and Clerical Workers
in 42 Large Cities
[Data pertain to homes occupied at end of schedule year, within the period 1934-361
Item
Percent of families living in—
1-familydetached house.
1-family semidetached
or row house________
2-family house________
Apartment___________
With elevator.. . .
Dwelling with janitor
service . . . ___ _____
Percent of families having—
Bathroom_________ ....
Inside flush toilet_____
Outside flush toilet____
Other type toilet______
Sole use of toilet by
household__________
Water inside dw elling...
Running water inside
dwelling____________
Hot running water inside dwelling_____ ._
Pump inside dw elling.._

Home Home
All
owners renters families

69.2

25.3

38.6

17.2
12.4
1.2
.1

13.9
27.2
33.6
2.3

14.9
22.7
23.8
1.6

.6

21.5

15.1

93.1
95.2
.9
3.9

89.6
95.7
2.0
2.3

91.3
95.6
1.7
2. 7

97.4
98.2

91.9
98.7

97.6

98.1

98.0

86.3
.6

82.0
.6

83.3
.6

Item
Percent of families having—
Water outside dwelling.
Sink______________ . . .

93.6
98.6

Gas or electricity for
Refrigerator:
Electric_______ . _
Other mechanical.._
Ice__ __________ __
Central heat—hot air,
hot water, or steam .. .
Garage____ _______ . . .
Garden or lawn space.. .
Each of the following
items: Running hot
water, inside flush toilet, electric light, and
gas or electricity for
co o k in g ______ _____

Home Home
All
owners renters families

1.8
98.2
98.4

1.3
98.1
98.2

1.5
98.1
98. 3

90.4

89.5

89.8

27.8
1.9
62.9
7.4

25.2
2.7
65.6
6.5

26.0
2.5
64.7
6.8

73.4
45.0
58.9
65.7

64.3
2a 9
33.5
31.6

67.1
an a
41.3
42.0

80.8

76.4

77.8

HOME OWNERS

The typical home owner lived in a one-family detached house.
Fewer than 1 in 10 home owners were without a bathroom, an inside
flush toilet reserved for the sole use of the household, running water,
electric lights, and gas or electricity for cooking. Two in ten home
owners lacked one or more of the following conveniences: Running
hot water, inside flush toilet, electric light, and gas or electricity for
cooking. Two-thirds of the home owners used ice for refrigeration,
but almost a third had electric or other mechanical refrigerators.
Two-thirds had garden space and nearly half had telephones.
RENTERS

Over half the renters lived in apartments or in two-family houses
arranged for occupancy by one family above the other. An average
monthly rental of $23.50 was reported by all families living in rented
dwellings, whether house or apartment, at the close of the study year.
Nine out of ten families which rented their dwellings had bathrooms,
inside flush toilets, running water, electric lights, and gas or electricity
for cooking.
Three-fourths of the renters had each of the following conveniences:
Running hot water, inside flush toilet, electric light, and gas or elec­
tricity for cooking. About two-thirds of them had central heat, and
the same proportion used ice for refrigeration. About one-third had
garages and garden or lawn space. Telephones and electric refrigera­
tors were found in about a fourth of the rented dwellings.


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Federal Reserve Bank of St. Louis

813

Housing Facilities and Expenditures
Fig 2

PERCENTAGE OF FAMILIES
HAVING SELECTED HOUSING FACILITIES
1 9 3 4 - 1936
12,903 WHITE AND 1,566 NEGRO FAMILIES OF WAGE EARNERS
AND CLERICAL WORKERS IN 42 C IT IE S GROUPED BY REGION
0

10

20

30

40

PE R C EN T A G E
50

60

70

80

NEW YORK CITY

WHITE FAMILIES

NEGRO FAMILIES

NORTH ATLANTIC
C IT IE S
WHITE FAMILIES

NEGRO FAMILIES

SOUTHERN
C IT IE S
WHITE FAMILIES

NEGRO FAMILIES

EAST NORTH
CENTRAL CITIES
WHITE FAMILIES

NEGRO FAMILIES

W EST NORTH
CENTRAL CITIES
WHITE FAMILIES

NEGRO FAMILIES

PACIFIC COAST
C IT IE S
WHITE FAMILIES
INSIDE FLUSH TOILET, RUNNING HOT WATER,
ELEC TR IC LIGHTS, a GAS OR ELEC T R IC IT Y FOR COOKING
CENTRAL HEATING
T ELEPH O N E
U S. BUREAU OF LABOR STATISTICS


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90

100

814

Monthly Labor- Review—A pril 1940

Total Housing Expenditure by Income Level
Total money expenditure for housing 5 did not reach the average of
$33 per month until family incomes exceeded $1,500 per year. (See
table 5.) Families in the survey with incomes from $600 to $900 per
year spent an average of about $20 a month, and that amount con­
stituted 29 cents of the total family dollar spent. Families with in­
comes from $2,400 to $2,700 spent $40 per month, yet this amount
represented only 20 cents of each dollar spent by the families in this
income class when the value of housing in kind of home owners is
added.
T able 5.—Monthly Money Housing Expenditures of 14,469 Families of Wage Earners
and Clerical Workers in 42 Large Cities, by Income Level
[Data cover 12 months within the period 1934-36]

Annual net income of
family

All families____

.

$500 to $600________
$600 to $900____
.
$900 to $1,200...
$1,200 to $1,500___
$1,500 to $1,800....
$1,800 to $2,100...
.
$2,100 to $2,400...
$2,400 to $2,700_________
$2,700 to $3,000..
$3,000 and over. ______

Aver­ Housing i
Housing i
Per­
age
plus fuel,
Fuel, light, plus fuel,
Fuel, light,
cent of num­ light, and Hous­ and refrig­ light, and Hous­ and refrig­
ing 1
ing 1 eration
fami­ ber of refrigera­
eration
refrigera­
lies in per­
tion
tion
sur­
sons
per
vey
family
Amount
Percent of money expenditure
100.0

3.00

$31

$22

$9

24.2

17.1

7.1

.8
8.4
20.4
23.8
20.3
15.1
5.6
2. 7
1.3
1.6

3.11
3.18
3.41
3.54
3. 62
3.76
4.03
4. 27
4.37
4.81

16
20
26
29
33
35
38
40
42
47

11
14
18
20
23
25
27
29
31
34

5
6
8
9
10
10
11
11
11
12

30.0
28.8
27.8
25.6
24.3
22. 7
21.3
19.7
18.5
17.2

20.2
19.9
19.3
17.9
17.3
16.1
15.0
14.3
13.7
12.6

9.8
8.9
8.5
7.7
7.0
6.6
6.3
5.4
4.8
4.6

1 Includes rent less repairs paid by tenants, and expenditures of home owners for taxes, insurance, repairs,
refinancing charges, interest on mortgage, but not payments on principal or cost of permanent improvement
to owned homes.

The families at higher income levels had more members per family
than did those at lower income levels and consequently needed more
housing space. It is thus impossible to conclude the comparison of
their housing expenditures when averages per family have been
examined. When averages are computed in terms of expenditure per
family member, it appears that families at the $600 to $900 level spent
$6.42 per member per month for housing. This is contrasted with
$9.31 for families having incomes of $2,400 to $2,700. In other words,
although money expenditures per family were 95 percent greater at
the high income level than at the low one mentioned, expenditure per
person was only 45 percent greater. Total housing expenditure,
including value of housing in kind from investment in owned homes,
was 45 percent greater per person at the high income level.
6
Rent or current housing expenditure of home owners plus fuel, light, and refrigeration. For some families,
fuel, light, and refrigeration costs are included in rent while for other families they are paid separately. For
this reason, total housing expenditure including all these items is more nearly comparable for all cities and
all income levels.


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Housing Facilities and Expenditures

815

T able 6.— Total Monthly Housing Expenditures of 14,469 Families of Wage Earners
and Clerical Workers in 42 Large Cities, by Income Level
[Data cover 12 months within the period 1934-36]
Total expense for
housing 1
Annual net income of family

All families____ .
______
$500 to $600________________
$600 to $900________ _______
$900 to $1,200____
.
$1,200 to $1,500______________
$1,500 to $1,800_____________

Total expense for
housing *
Annual net income of family

Amount

Percent
of total
income 2

$409. 76
225.61
273.28
343.60
391.91
439. 66

26.9
38.0
35.0
32.3
29.0
26.8

$1,800 to
$2,100 to
$2,400 to
$2,700 to

$2,100
$2,400..
$2,700$3,000

Amount

Percent
of total
income 2

$475. 08
,520. 68
532.49
571.41
618.02

24. 5
23.1
21.0
19.8
18.1

1 Including money expenditure for rent, current housing expenditure of home owners, fuel, light, and
refrigeration, and value of housing in kind from investment in owned home.
2 Including money income and value of income received in kind from investment in owned home.

Income, Family Size, and the Consumption Level of Family
The level of well-being at which a family lives is affected not only
by the size of its income, but by the number, age, and sex of persons
for whom that income must provide. To take account of this im­
portant factor, the families in this survey were classified by consump­
tion level, that is, by the amount of the family’s total expenditure for
the year per family member.6 With families so classified, the larger
families tend in general to fall in the lower consumption levels and the
smaller families in the higher levels. Some of the families at the
lowest levels were small in size as well as in income. The majority,
however, had incomes tending toward the average, and were thus
classified because of the large number of persons dependent on those
funds. On the average, incomes were higher at the higher consump­
tion levels.7
The average income of the 14,469 families surveyed was $1,524 and
of the families at certain consumption levels was as follows:
Families with total annual unit expenditure of—Average income
$200 to $300____________________________________ $1, 187
$500 to $600____________________________________ 1, 596
$800 to $900____________________________________ 1, 884
$1,100 to $1,200________________________________
2, 262

Housing by Consumption Level
The details of housing facilities and expenditures are available for
the families studied, thus classified by total expenditure per adult
equivalent. For housing, particularly, the family expenditures are
8 The terms “consumption level” and “economic level” are used to denote classification of families by
annual expenditure per unit for the total of all items of family expenditure. The unit used for this purpose
is the equivalent adult male. Each member of the family, taking into account age, sex, and activity, is
counted as the appropriate decimal equivalent of an adult male. For fuller explanation, see article, “ In­
come, Family Size, and Economic Level of the Fam ily,” in M onthly Labor Review, January 1940, or
Appendix G of Bulletin No. 641.
7
See M onthly Labor Review, January 1940: “Income, Family Size, and the Economic Level of the
Fam ily.”
2 1 7593— 40------- 3


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816

Monthly Labor Review—A pril 1940

much more meaningful when consideration is given to the number of
persons among whom they are shared. Total housing expenditures
per family (including fuel, light, and refrigeration and imputed
expenditures of home owners) were 55 percent greater for families
with total annual unit expenditures of $1,100 to $1,200 than for those
with unit expenditures of $200 to $300. (See table 7.) Yet such
expenditures per person were 249 percent greater at the higher con­
sumption level, partly because they had smaller families on the aver­
age. The greater privacy per family member at the high economic
level is indicated by the 0.49 person per room at that level as compared
with 1.12 persons per room among families with total annual unit
expenditures of $200 to $300. These figures may be compared with
the generally accepted American standard of a minimum of one room
per person.
T able 7.—Housing Space per Person, and Housing Expenditures per Family and per
Person, of Families in 42 Large Cities, at Selected Consumption Levels
[Data cover 12 months within the period 1934-30.1
Families with total annual unit
expenditure of—
All
families

Item

Average number of persons in household:
All families_________________________

_

Average number of rooms ~per family:

Average expenditure per person in household:
Homo owners 2_______ __________ ______ -

Average investment of home owners in owned home
during year:

$500 to
$600

$800 to
$900

$1,100 to
$1,200

3.39
4.09
3.98
3.15
3.65

5.33
5. 66
5.15
4. 69
5.13

3.33
3. 50
3.36
3.28
3.12

2. 60
2.85
2.58
2.56
2.42

2.37
2.51
2.40
2.42
2.16

5.10
6.41
4.09
3.77
4. 74

4. 78
5.93
5.22
3.91
4. 75

5.07
5.99
3.81
4.69

4.95
6.22
5.32
3.68
4.80

4. 80
5. 71
5.81
3.51
4.79

.66
.64
.97
.84
.77

1.12
.95
.99
1. 20
1.08

.66
.58
.61
.86
.67

.53
.46
.48
.70
.50

.49
.44
.41
.69
.45

$409.81
469.16
374. 05
427.67
368.85

$341.22
393.73
314.35
355.12
312. 21

$433.18
495.90
411.49
422. 66
387.66

$480.26
566.52
444.53
461.07
418.30

$530. 01
541.38
490.56
580.00
461. 71

120.89
114. 71
93.98
135. 77
101. 05

64.02
69. 56
61.04
75. 72
60.86

130.08
141.69
122.47
128.86
124. 25

184. 72
198. 78
172.30
180.11
172.85

223.63
215.69
204.40
239.67
213. 75

84.13
21.97

68.35
12.45

93.68
29.00

104.51
42.48

260. 61
120.65

Average number of persons per room:

Housing, including fuel, light, and refrigeration:
Average expenditure per family:

$200 to
$300

1 Including value of housing in kind from investment in owned home.
2 Including value of housing in kind from investment in owned home. These figures are computed on
the assumption that fuel, light, and refrigeration expenditures of renters of unheated houses and of house
owners arc the same. Figures on such expenditures are available for families living in houses and paying
for heat separately from rent or ownership payments, but not by tenure. (See footnote 2, table 2.)
2 These figures are computed on the assumption that fuel, light, and refrigeration expenditures of renters
of unheated houses and of house owners are the same. Figures on such expenditures are available for families
living in houses and paying for heat separately from rent or ownership payments, but not by tenure.


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Housing Facilities and Expenditures

817

Investment, in Owned Home, by Consumption Level
Forty percent of the home owners invested in their homes during
the year. These investments averaged $211. They took the form
either of down payments on principal of mortgage or other form of
home loan, or permanent improvements, such items as the addition
of a room, the installation of a furnace, or building of a garage. The
average investment, per family investing, of families at selected con­
sumption levels, was as follows:
Families with total annual unit expenditure of—
family investing
$200 to $300_____________________________________ $161
$500 to $600_____________________________________
191
$800 to $900_____________________________________
219
$1,100 to $1,200__________________________________
478

The fact that the investigation was made at a time when business
recovery was under way but not yet complete undoubtedly accounts
for the relatively small proportion of home owners making reductions
in principal owed or making permanent improvements. When such
expenditures are averaged for all home owners, whether investing or
not, the average is reduced to $84. (See table 7.) That average
investment per home-owning family at the high economic level shown
in table 7 was 4 times as great as at the lower level, while such invest­
ment per person was 10 times as great, emphasizes the greater strain
upon family funds of the large families.
Housing Facilities, by Consumption Level
Housing facilities among both tenants and owners (see table 8)
were markedly better for families at the higher consumption levels.
Thus the percent of owners having running hot water, inside flush
toilet, electric light, and gas or electricity for cooking, rose from 64
percent at the $200 to $300 unit-expenditure level to 100 percent at the
$1,100 to $1,200 level. The corresponding percentages for renters were
56 and 97 percent.
Running water inside the dwelling, electric lights, and sinks were
available to 90 percent or more of the families even among the least
favored in this group 8 of employed wage earners and clerical workers.
Inside flush toilets were available in not quite 9 out of 10 homes at the
$200 to $300 unit-expenditure level.
8
No families on relief or with incomes below $500 were included in the investigation. For details of the
requirements for inclusion in the study see appendix D of Bureau of Labor Statistics Bulletin No. 637,
Vol. II, or Nos. 639 or 641.


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Federal Reserve Bank of St. Louis

Monthly Labor Review—A pril 1940

818
T a b l e 8 . —Housing

Facilities of Families of Wage Earners mid Clerical Workers in
42 Large Cities, at Selected Consumption Levels

[Data pertain to home occupied at end of schedule year during period 1934-36]

HOME OWNERS
Families with total annual unit
expenditures of—
All
families

Item

$200 to
$300
Percent of families living in—
1-family detached house---------------------------------1family semidetached or row house--2family house--------------------------------Apartment__________________________________
W ith elevator____________________________
Dwelling with janitor service_________________
Percent of families having—
Bathroom------ ---------------------------------------------Inside flush toilet____________________________
Outside flush to ilet1_________________________
Other type toilet____________________________
Sole use of toilet by household------------------------Water inside dwelling________________________
Running water inside dwelling-----------------------H ot running water inside dwelling __--------------Pump inside dwelling-----------------------------------Water outside dwelling---------------------------------Sink________________________________________
Electric lights_______________________________
Gas or electricity for cooking--------------------------Refrigerator:
Electric_________________________________
Other mechanical---------------------------------- Ice________________ _____________________
N one___________________________________
Central heat—hot air, hot water, or steam-------Telephone__________________________________
Garage--------------------- ----------------------------------Garden space_______________________________
Each of the following items: Running hot water,
inside flush toilet, electric light, and gas or
electricity for cooking----------------------------------

69.2
17.2
12.4

1.2
.1
.6

93.1
95.2
.9
3.9
97.4
98.2
97.6
86.3
.6

1.8

98.2
98.4
90.4

27.8
1.9
62.9
7.4
73.4
45.0
58.9
65.7
80.8

65.7
23.0
10.6

.7
.3
.3
83.2
88.6

1.6

9.8
98.4
95.0
93.8
72.4

1.2

$500 to
$600

68.2

17.5
12.9
1.4

0

96.9
97.6
.6
1.8

96.8
99.4
98.6
91.1
.8
.6

5800 to
$900

68.4
14.4
15.6

1.6

0

.4
97.7
100.0
0

0
97.0
100.0
100.0

96.0

0
0

5.0
95.6
97.5
78.9

99.4
99.2
92.5

99.7
99.4
99.0

9.1

33.8

49.3
5.8
38.6
6.3
80.9
74.2
73.1
73.5

.6

80.2
10.1

62.5
20.2

46.6
62.4

2.0

59.2
5.0
76.4
54.1
63.3
66.4

$1,100 to
$ 1,

200

72.5
13.0
14.5

0
0
0

100.0
100.0
0

0

100.0
100.0
100.0
100.0

0
0
100.0
100.0

100.0

63.5
10.1

23.6

2.8

74.0
63.9
69.8
71.1

100.0

63. f

TENANTS
Percent of families living in—

Percent of families having—

Refrigerator:
Other m echanical..

...

— -

Telephone__ ____________ __________ -- --Each of the following items: Running hot water,
inside flush toilet, electric light, and gas or

25.3
13.9
27. 2
33.6
2.3
21.5

30.5
21.7
24.0
23.8
.2
8.9

23.4
11.9
28.8
35.9
2.7
24.7

17.0
8.7
27.2
47.1
3.2
37.7

15.7
13.6
19.0
51.7
15.6
44.6

89.6
95.7
2.0
2.3
91.9
98.7
98.1
82.0
.6
1.3
98.1
98.2
89.5

78.1
89.9
3.9
6.2
90.2
96.6
96.1
64.9
.5
3.4
95.7
95.3
76.6

93.2
98.1
1.0
.9
92.3
99.8
99.0
87.7
.8
.2
99.1
99.4
95.8

97.1
99.4
.6
0
95.7
100.0
99.4
95.8
.6
0
99.6
99.3
98.5

97.8
100.0
0
0
95.3
100.0
100.0
100.0
0
0
100.0
98.7
98.7

25.2
2.7
65.6
6.5
64.3
23.9
33.5
31.6

6.9
.5
82.8
9.8
45.2
7.7
20.7
34.0

28.8
2.9
63.7
4.6
70.9
29.4
36.7
29.7

50.8
5.7
38.3
5.2
79.2
44.5
45.6
28.9

56.7
12.2
27.7
3.4
84.5
52.3
50.6
34.2

76.4
$23.51

55.6
$17. 90

84.2
$24. 74

93.7
$29.11

97.4
$34. 40

i The large proportion of outside flush toilets is explained by the conversion in some southern cities of
privies to flush toilets as required by city ordinance when sewers were laid. In a number of northern cities
as well, a few families used outside flush toilets.


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Federal Reserve Bank of St. Louis

Housing Facilities and Expenditures

819

The electric refrigerator is the outstanding example of the type of
facility which was afforded by only a small proportion of families at
the low consumption levels, but by a rapidly expanding proportion at
higher levels. Included in this group are also the telephone and
garage. Expenditures for these three items behave like “luxury”
expenditures, that is, the percentage of families having them is very
restricted at low consumption levels and expands rapidly at higher
ones. Items which show proportionately greater saturation at low
consumption levels, but some increase at higher levels, are hot runningwater, bathrooms, inside flush toilets, and central heating.
Housing Expenditures, by Consumption Level
Families at the lower consumption levels who were living as tenants
paid only about $17 a month rent for a house or unheated apartment,
or $25 a month for a heated apartment. (See table 9.) When they
spent as much as $1,100 to $1,200 per adult equivalent, they paid
two-thirds to three-fourths as much again for rent.
T able 9.—Average Annual Rent 1 P aid by Tenant Families of Wage Earners and
Clerical Workers in 42 Large Cities, at Selected Consumption Levels
[Data cover 12 months within the period 1934-36]

Families with total annual unit expendi­
ture of—
Type of dwelling

All
families
$200 to
$300

Houses-.
.......................................................
Heated apartments__________ _____ ______________
Unheated apartm en ts.._ .......................... ......

$251
375
253

$204
304
208

$500 to
$600

$283
369
269

$800 to
$900

$307
409
299

$1,100 to
$1,200

$361
514
348

1 Including repairs paid by tenant. These averaged less than $1.10 in each instance except for house renters
in the $1,100-$1,200 unit expenditure class where they averaged $6.64.

Money expenditures of home owners were greatest for taxes and
interest. These two items accounted for 77 percent of current money
housing expenditures, exclusive of fuel, light, and refrigeration. Re­
pairs and replacements accounted for an additional 16 percent of the
current housing outlay. The remainder was absorbed by assessments,
insurance, refinancing charges and, in a few cities, by ground rent.
A larger proportion of families at higher consumption levels were able
to make investments in their homes, and the amount per family
investing was correspondingly greater. (See table 10 and p. 817.)


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Federal Reserve Bank of St. Louis

820

Monthly Labor Review—April 1940

In general, the families at higher levels (see p. 815 for average income
by consumption level) also carried more insurance and paid more
on principal and taxes. The rental value of their homes was in generals
higher. The value of housing received in kind from the investment
in their homes was higher, interest paid was correspondingly lower.
These lower interest payments reflect the greater equities of the
families at the higher consumption levels.
T a b l e 10 .—Housing

Expenditures of Home-Owning Families of Wage Earners and
Clerical Workers in 42 Large Cities, at Selected Consumption Levels
[Data cover 12 months within the period 1934-36]
Families with total annual unit expendi­
ture of—
All
families

Item

$200 to
$300
Percent of families which invested during schedule
year in owned home______________ ___________

$500 to
$600

$800 to
$900

$1,100 to
$1,200

39.9

42.5

49.1

47.7

54.5

Average amount invested during schedule year, total
Payments on principal___ _______
___ _ _
Improvements on home______________________

$84.13
65.85
18. 28

$68.35
54. 36
13. 99

$93.68
75. 95
17.73

$104. 51
81.15
23. 36

$260.61
221.43
39.18

Average estimated annual rental value..........

............

346. 32

283.85

367.08

428. 88

411.57

Total money expenditure on owned hom e____ - . .
Taxes___ ______ . . . . . . . ____________________
Assessments________________ ______ . . . . . .
Repairs and replacements___ _ ______ ______
Fire insurance on home_____ ______ ___
..
Liability insurance on home. . . ______________
Ground r e n t . . . _____ ______________________
Interest on mortgages_____________ _________
Refinancing charges___________ ______ ____

202.46
78.15
3. 75
32. 72
7. 23
.11
1.05
77.29
2.16

149.43
63.91
1.88
15. 26
5. 62
.11
1.23
59. 39
2.03

220.18
81.82
4.72
37.64
7.99
.24
1.20
83. 87
2.70

277. 01
101. 63
3.39
54.16
10.39
.32
1.34
103. 70
2.08

205.11
70.26
15.50
25.07
12. 81
1.73
0
76.10
3.64

Average income in kind from investment in owned
home_____________________ _________________

143. 86

134.42

146.90

151.87

206.46

Expenditures for Fuel, Light, and Refrigeration
For families in houses where heat was furnished by the occupant
(both home owners and renters), fuel, light, and refrigeration expendi­
tures were principally for coal, electricity, and gas (table 11). Ice
was purchased by two-thirds of the families, but by a much larger
proportion at the low than the high consumption levels. Heating
fuels, on the other hand, did not show the consistent increase which
might have been expected at higher consumption levels. This may
be due in part to the fact that the adult families are found principally
at the higher economic levels. They would not be under the same
necessity as families with small children to keep their houses heated
throughout the day, nor to such high temperatures.


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Federal Reserve Bank of St. Louis

821

Housing Facilities and Expenditures

T able 11.— Fuel, Light, and Refrigeration Expenditures of Families Making Separate
Payments for Heat, at Selected Consumption Levels
[Data cover 12 months within the period 1934-36]
Families ’iving in—
H ouses1

Item

Fuel, light, and refrigeration.. _ _

Apartments

Percent of
families
spending

Average
am ount2

Percent of
families
spending

100.0

$122.84

100.0

$116. 27

97.2
30.0
42.4
1.6
14.3
.9
.2
21.7
4.8
85.9
9.2
1.4
68.5

30.26
18.42
19. 60
.80
8.84
.35
(4)
2.32
2. 40
27.01
1.08
. 12
11.64

96.8
35.1
33.5
(3)
18.9
.7
9.6
19.5
16.9
89.5
6.7
.7
73.0

26. 02
18.11
14.19
.03
10. 45
.20
.04
1.56
8. 75
24.39
.91
.04
11.58

Electricitv ____
Anthracite__ . . . ___
Bituminous coal________ .
Lignite___________________ _
C oke.. . . .
. . .
B riq u ettes_____
Charcoal_____
Wood______
F u eloil. ___________ . .
Oas______________ ___
Kerosene______
Gasoline (not for automobile)___
Ice_____ ______ _______

Average
am ount2

1Includes owners and tenants making payments for heat separate from rent. See table 2, footnote 2.
2Average based on all families whether they incurred the expense or not. Averages per family spending
may be obtained by dividing the average expenditure for all families (shown in columns (2) and (4)) by the
corresponding percentage of families spending (in columns (1) and (3), respectively).
3 Less than a half of 1 percent.
4 Less than V> cent.

Coal, electricity, gas, ice, and coke-—in that order—were the largest
items in the fuel bills of families in unheated apartments. Fuel oil
was substituted, to a considerable extent, for coal and wood at the
higher consumption levels. Ice was used by a declining percentage
of families at higher consumption levels. In certain localities families
reported the use of lignite, briquettes, and charcoal. These instances
were relatively rare, however, so that the average expenditure for these
items is small. Coke was rather frequently reported, however, and the
average expenditure ranged from $7 to $16 at the several consump­
tion levels.
T able

12.— Fuel, Light, and Refrigeration Expenditures of Families Renting Heated
Apartments in 42 Large Cities, at Selected Consumption Levels
[Data cover 12 months within the period 1934-36]
Families with total annual unit expendi­
ture of—
Item

Percent of families spending for—
Electricity__________________________________
Gas______ __________ ____
. ___
Ice____________________ ______ _ _________
Average expenditure for fuel, light, and refrigeration __
E lectricity.. . _____________________________
Gas_________________________________ . ____
Ice____ _____________________________________
All other fuel_____ ___________________________


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All famHies

$200 to
$300

$500 to
$600

$800 to
$900

$1,100 to
$1,200

80.2
77.8
50.2

72.1
68.0
77.1

81.1
79.6
49.8

82.6
78.0
29.9

92.1
94.2
14.3

$53.07
23. 74
17.65
10.48
1.20

$51.15
19.09
17.08
12.48
2.50

$53.35
23.81
18. 30
10.89
.35

$52.01
26.29
17. 58
7.89
.25

$65.86
35.93
25.42
4.51
0

822

Monthly Labor Review—April 1940

Families renting heated apartments reported expense for electricity,
gas, and ice. The proportions spending for the first two items were
greater at the higher consumption levels while the reverse was true
for ice.
Housing of White and Negro Families
The total housing expenditures of Negro families surveyed were
$286 per year or approximately $24 a month as compared with $35 per
month for white families. These figures include fuel, light, and refrig­
eration expenditures as well as value of housing in kind from invest­
ment of home owners. The Negro families had 4.4 rooms per family,
as compared with 5.1 for the white families. Over a third, 36.9
percent, of the Negro families lived in one-family detached houses
as compared with 38.7 percent of the white families.
The difference in housing expenditures of white and Negro families
is no greater than would be expected from the difference in their
incomes. The average income of the white families surveyed was
$1,546, and of the Negro families was $1,008. At comparable income
and consumption levels, it was generally found that in northern cities
the Negroes actually paid higher rents than white families. The
Negroes are by custom restricted to certain sections of the city.
This means that to obtain housing of comparable quality to that of
white families they must pay more. In southern cities, on the other
hand, Negro families generally paid lower rents than white families of
similar financial status. The facilities of the dwellings they occupied
were, however, considerably below those of the white families, indi­
cating again the operation of restrictions in the dwellings available to
Negroes.
Regional Differences in Housing Facilities
WHITE FAMILIES

Climatic and other regional differences affect the kinds of housing
found in different sections of the country. Only 27 percent of the
white families in the Southern cities and 34 percent in the Pacific coast
cities had central heat, as compared with 84 percent of those living
in cities in the East North Central area (table 13). Garden and lawn
space were rare for families studied in New York City and the other
North Atlantic cities, as compared with the other regions. Apart­
ments are most typical in New York City, but one-family detached
houses are more frequent on the West coast, and in West North Central
and Southern cities.
Electric refrigerators were reported by the largest proportion of
white families in the West North Central cities, whereas telephones
were most frequently reported on the Pacific coast.

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823

Housing Facilities and Expenditures

The combination of running hot water, inside flush toilet, electric
light, and gas or electricity for cooking was reported by 93 percent of
the white families in New York City, 92 percent in Pacific coast
cities, 83 percent in the East North Central area, 77 percent in the
North Atlantic, 74 percent in the West North Central, and 64 percent
in the Southern cities.
T able 13.—Housing Facilities of White Families in 42 Large Cities, by Region
New
York
City

Item

Percent of families living in­
i-family detached house-------- __ __
1-family semidetached or row house.-2-family house_____________________
Apartment--------------- -------------------W ith elevator-.. --------------------Dwelling with janitor service______ .
Percent of families having—
Bathroom_________________________
Inside flush to ilet.. ----Outside flush toilet_________
—
Other type toilet----- -------------------Sole use of toilet by household---------Water inside dwelling______________
Running water inside dwelling______
Hot running water inside dwelling___
Pump inside dwelling-------- . --------Water outside dwelling------------- —
Sink-------------- ------------ ----------------Electric lights_____ . -------------------Gas or electricity for c o o k in g ..--------Refrigerator:
Electric__________________ _____
Other mechanical-. ____________
Ice____________________________
N o n e .. . .
------ - . . -- -Central heat—hot air, hot water, or
steam_________ . -----. -----Telephone______ _________________
Garage___
___ --- --Garden or lawn s p a c e .------------Each of the following items: Running
hot water, inside flush toilet, elec­
tric light, and gas or electricity for
- cooking
-. . . .
-------

11
North
Atlantic
cities

8
12
East
Southern North
cities
Central
cities

5
West
North
Central
cities

5
Pacific
Coast
cities

5.6
2.3
20.1
72.0
7.0
77.6

28.0
26.2
26.2
19.6
.6
5.8

53.8
21.1
15.5
9.6
.1
3.8

47.5
5.9
31.2
15.4
.9
6.5

57.0
5.9
16.6
20.5
.6
11.4

67.3
6.6
9.7
16.4
2.8
6.7

91.5
99.2
.8
0
91.2
100.0
100.0
94.5
0
0
100.0
99.8
97.8

91.8
97.6
.6
1.8
95.3
99.8
99.3
85.2
.5
.2
99.6
99.0
88.3

92.8
92.8
3.5
3.7
90.7
98.0
97.3
68.9
.7
2.0
95.9
97.1
85.9

90.6
96.1
1.1
2.8
94.1
98.7
97.7
85.0
1.0
1.3
98.8
99.3
96.0

90.4
94.4
1.4
4.2
91.8
99.1
98.3
80.3
.8
.9
98.0
99.3
89.8

99.2
99.5
.3
.2
99.3
100.0
99.9
97.9
.1
0
100.0
99.9
93.7

27.4
11.3
60.0
1.3

23.5
1.4
69.3
5.8

28.6
1.8
67.2
2.4

28.7
1.0
64.6
5.7

34.3
1.1
58.1
6.5

25.2
1.4
45.4
28.0

77.5
14.3
9.7
15.3

75.0
31.1
27.2
39.9

27.1
34.6
57.2
46.7

84.0
25.6
58.1
51.4

78.3
42.6
56.8
44.8

34.1
53.1
75.9
60.2

192. 5

76.8

63.9

82.6

73.6

91.7

NEGRO FAMILIES

In general, the Negro families surveyed had less satisfactory housing
facilities than the white families in every region (table 14).8 In New
York City, however, the figures obtained show that the Negro families
included in the investigation had what may be regarded as a minimum
combination of housing facilities. In some instances the proportion
of such families in New York having a given facility was even greater
than that of the white families studied, for example, hot running water,
janitor service, and central heat. These figures all reflect the general
restriction of Negro wage earners in New York City to apartment
areas. None of the Negro families in New York City reported a
garage, and a much smaller percentage than of white families had
garden or lawn space. A smaller proportion had electric refrigerators.
8 In using the figures for Negroes for all regions it must be remembered that families on relief were ex­
cluded from the study as well as families with incomes below $500.


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824

Monthly Labor Review—April 1940

As regards the aspects of housing not measured by the study—size of
rooms, provision of sunlight, air, and quiet—the majority of New
York City families, white as well as Negro, are at a disadvantage as
compared with other city families in the United States. Southern
Negro families had the lowest proportion (20 percent) using gas or
electricity for cooking. They also had the highest percentage report­
ing outdoor flush toilets and privies. Only 11 percent of the south­
ern Negro families surveyed had all of the following housing facilities:
Running hot water, inside flush toilet, electric light, and gas or elec­
tricity for cooking. This figure compares with 29 percent in East
North Central cities, 32 percent in West North Central, 69 percent in
North Atlantic cities and 95 percent in New York City.
T able 14.-—Housing Facilities of Negro Families in 16 Large Cities, by Region

Item

Percent of families living in—
1-family detached h o u se ... __________________
1-family semidetached or row house___________
2 -family house______ ________________ _______
Apartment__________________________________
With elevator___________________________
Dwelling with janitor service.. _______________
Percent of families having—
Bathroom___________________________________
Inside flush toilet_______ __________ _______
Outside flush toilet_________________________ .
Other type toilet____________________________
Sole use of toilet by household________________
Water inside dwelling — _ _______ _______ __
Running water inside dwelling_____ __________
Hot running water inside dwelling____ ________
Pump inside dwelling________________________
Water outside dwelling_______________________
Sink___ . _____________________________ _ .
Electric lights_______ _____________________
Qas or electricity for cooking_____ _______ _____
Refrigerator:
Electric______ ________ _____________ „
Other mechanical___________ ___________
Ice________ ____________________________
None______________
___________ _____
Central heat—hot air, hot water, or steam_____
Telephone___________________________ _______
Garage.. _ _ _____________ ___________ ____
Garden or lawn space................ ...... ............ .........
Each of the following items: Running hot water,
inside flush toilet, electric light, and gas or
electricity for cooking______________ _____ _


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New
York
City

2
North
Atlantic
cities

2
9
East
Southern North
cities
Central
cities

2
West
North
Central
cities

0
0
5.0
95.0
14.0
94.0

9.1
61.1
13.6
16.2
.5
3.5

55.0
27.9
10.3
6.8
0
.6

34.8
17.9
20.9
26.4
.5
3.5

33.0
9.6
28.2
29.2
.5
10.0

99.0
100.0
0
0
96.0
100.0
100.0
99.0
0
0
100.0
98.0
97.0

87.4
94.0
4.5
1.5
82.3
100.0
100.0
81.8
0
0
99.5
96.0
84.3

40.0
49.1
27.2
23.3
81.5
71.3
68.6
17.7
2.7
28.7
68.6
62.2
20.0

46.3
73.1
5.5
21.4
79.1
82.1
79.6
36.8
2.5
17.9
S4.6
92.0
53.7

62.2
68.9
10.5
20.6
75.6
92.3
91.8
37.8
.5
7.7
89.5
95.2
62.7

10.0
2.0
88.0
0
94.0
12.0
0
2.0

8.6
0
91.4
0
54.0
17.7
5.6
11.6

1.9
0
90.1
8.0
9.4
9.6
12.6
37.5

6.0
0
92.0
2.0
34.3
8.5
20.4
46.8

15.8
0
83.7
.5
32.5
24.9
16.7
24.4

95.0

69.2

10.8

29.4

32.1

COLLECTIVE BARGAINING BY THE AMERICAN
NEWSPAPER GUILD 1
THE growth of the American Newspaper Guild and its efforts to be­
come the collective-bargaining agency for editorial and commercial
workers on newspapers throughout the country provide the first
example in American experience of widespread union organization
among workers usually classified as professional or “white collar”
employees. By March 1940, 9 years after its establishment in 1933,
the Guild had secured signed agreements with 140 newspapers, presswire services, feature syndicates, and magazines, in addition to infor­
mal agreements covering conditions of work in other newspaper and
news-service agencies.
Prior to the NRA, newspaper editorial writers made only sporadic
efforts to organize, although mechanical craftsmen in the industry
early organized and improved their working conditions through
collective bargaining. A newswriters’ union was formed in Pittsburgh
in 1891 and received a charter from the International Typographical
Union. Opposition from employers, however, hindered organizing
activity and most of the newswriters’ locals chartered by the I. T. U.
were disbanded after a brief existence. In 1923 the I. T. U. abandoned
further efforts to organize editorial workers, but retained the locals in
existence in Milwaukee and Scranton.
An attempt to organize newsmen, in addition to that of the I. T. U.,
was made in 1919 when the American Journalists’ Association was
formed. This organization, however, soon disbanded. A New York
newswriters’ union was formed in 1923, but this, too, had only a brief
existence. The American Federation of Labor also made some
attempt to organize the editorial branches of newspapers, and granted
charters to several locals of newswriters directly affiliated with the
A. F. of L.
As in many other industries, the enactment of the National Indus­
trial Recovery Act in 1933 served as an impetus to renewed union
organization in the newspaper field. The newspaper code formulated
under the NRA did not include any guaranty for editorial employees
of a shorter workweek or minimum wages. Members of editorial
staffs were classified as professionals and thus were excluded from
wage and hour provisions of the code. This exclusion followed a
period of severe economic dislocation, unemployment, and insecurity
of tenure among newspaper writers and reporters resulting from a
series of newspaper consolidations in the 1920’s, followed by the
i Prepared by Abraham Weiss under the supervision of Florence Peterson, Chief, Industrial Relations
Division.


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825

826

Monthly Labor Review—April 1940

depression years after 1929. Although the newspaper code offered no
real protection to them, many editorial employees took advantage of
section 7a of the general act and organized into local (associations of
newsmen and reporters.
The newswriters’ feeling of a need for protection through a national
organization led to the formation of the American Newspaper Guild
in December 1933. The first union agreement was signed in April
1934 with the Philadelphia Record.
Serious difficulties, including dismissal of members for union
activity, were experienced by the new union. In many cases the
newswriters secured bargaining rights only after serious and pro­
longed strikes, the first major strike being on the Newark Ledger in
November 1934. In 1936 two strikes on Hearst papers, the Wisconsin
News in Milwaukee and the Seattle Post-Intelligencer, received
widespread support from organized labor. These marked a turning
point in the history of the Guild and in June 1936, as a result of
cooperation received from other labor organizations in the newspaper
publishing and other industries, the Guild voted to affiliate with the
American Federation of Labor. A year later the Guild transferred its
affiliation to the Congress of Industrial Organizations.
The 1937 convention extended the jurisdiction of the Guild, from
editorial workers and reporters only, to all employees in the newspaper
industry, except those in mechanical trades. About half the Guild
locals, including virtually all the larger locals, now include commercialdepartment employees among their membership. The Guild has
a membership of about 20,000, representing a little more than one-half
of those eligible to membership from the editorial departments of
newspapers and about one-fourth of the remaining newspaper em­
ployees within its jursidiction.
In general, the Guild negotiates agreements with each publisher
separately. In a few cases, notably in San Francisco, Minneapolis,
and Wilkes-Barre, -negotiations for agreements have been conducted
on a city-wide basis. Councils have been formed in the major
newspaper chains, to coordinate the activities among units in different
cities, but agreements are still signed by local Guilds with the local
management.
The convention of the Guild has formulated minimum standards
as a guide for all the locals. Unions entering into agreements violating
these terms may be suspended. The Guild agreements are unique in
their general inclusion of provisions which afford some protection of
employment tenure, and in their widespread guaranty of dismissal pay
for workers who lose their jobs.
The provisions of 78 signed agreements, covering 96 newspapers,
wire services, and weekly magazines, are summarized in this article.
Included among these are newspapers of some of the larger chains, as

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Collective Bargaining by Newspaper Guild

827

well as independent papers. These agreements cover approximately
10,000 workers, of whom about one-third are commercial employees.
In plants where both editorial and commercial employees are organ­
ized, a single agreement generally covers these two branches of the
industry. There are 37 of these among the agreements studied.
Provisions of Agreements
DURATION AND RENEWAL

Newspaper Guild agreements generally extend for a 1-year period.
In most agreements, negotiations for a succeeding agreement must
take place within 60 days before the expiration date. In five agree­
ments the required notice for negotiation or renewal ranges from 30
to 90 days. Seven agreements are renewed automatically from year
to year, unless 60 days’ written notice of intention to modify or termi­
nate the agreement is given.
UNION STATUS AND EMPLOYMENT

The Guild is recognized as the exclusive bargaining agency for all
employees within its jurisdiction in all of the agreements covered in
the Bureau’s study.
Twenty-two of the agreements covering 26 newspapers provide for
the “guild shop,” that is, all employees covered by the agreement must
be members of the Guild in good standing Employees in executive
and confidential positions and temporary or part-time employees are
generally exempted. Under these agreements nonmembers usually
are given 30 days from the date of signing or, in the case of new em­
ployees, 30 days from the date of hiring to become Guild members.
Ten additional agreements covering 17 newspapers contain provi­
sions for a modified closed shop, in which the existing proportion of
Guild members to all employees is to be maintained or in which present
nonmembers are not required to join the union, but, once having
joined, are obliged to remain in good standing. The other agree­
ments contain no reference to union membership as a condition of
employment.
Preferential consideration in hiring is provided for union members
in six of the “guild shop” agreements. If the Guild is unable to supply
a satisfactory person within 5 days, the publisher may employ anyone
he chooses, provided that person has not previously been expelled or
suspended from any unit of the American Newspaper Guild. In
several others, the employer agrees to consult informally with the
Guild regarding a vacancy.
The check-off method of collecting dues is found in three agree­
ments. In five agreements the Guild is permitted the use of a desk on
pay days for dues collection.

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828

Monthly Labor Review—April 1940

In over one-fourth of the agreements the union is specifically given
the right to use bulletin boards in the offices for union notices.
HOURS AND LEAVE PROVISIONS

The 5-day, 40-hour week for both editorial and commercial office
employees of newspapers, news services, and weekly magazines is
found in more than 85 percent of the agreements. Three New York
City Jewish newspapers operate on a 5-day, 36-hour week. An
Italian-language newspaper in San Francisco operates on a 6-day,
36%-hour week, but employees may work a 5-day week consisting of
37 hours if their work permits. In two agreements providing for a
general 40-hour week, a shorter workweek (37% hours) is provided for
advertising-department employees, switchboard operators, and tele­
phone solicitors. Two agreements permit a 40-liour week to be
spread over 5% days and 6 days, respectively. Only three agreements
establish a general workweek longer than 40 hours.
Certain jobs are often specifically excluded from the hours provisions
of agreements. Sports, city, news, managing, society, women’s, and
financial editors, staff cartoonists, and editorial writers in the editorial
offices, and display and classified advertising department managers in
the commercial offices are the positions most frequently exempt. In
other agreements, certain editorial-department employees, principally
photographers, sports and society editors, and editorial writers, may
be required to work their 40 hours over 6 days instead of 5. In
the commercial departments, the 5%- or 6-day week may be required
of display and classified-advertising salesmen, circulators, financial
tabulators, and telephone operators.
The 8-hour workday, usually to be performed within 9 consecutive
hours, prevails in most of the agreements. There are virtually no
split shifts. Regularly scheduled daily hours of work are required, in
5 agreements, to be designated and posted by the publisher. Most
agreements provide that days off are to be regular and consecutive as
far as practicable.
In two agreements an employee required to be on call for a day, but
not actually given work, is considered to have done a day’s work.
Employees called to work on their regular day off are usually paid
for a full day even though less time is worked. In some agreements
such work may be paid at the overtime rate or may be canceled by
an extra day off later.
OVERTIME

The practice of paying for overtime work at a rate higher than the
regular pay, as is usual in most union agreements, is infrequent in
Guild agreements. Seven agreements provide that all overtime work
must be paid for at time and one-half, with double time required for all
work on Sundays and holidavs.

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Collective Bargaining by Newspaper Guild

829

Most newspaper office workers must cancel overtime work by taking
days off later. The Guild has favored such a provision in order to
spread employment, when it has been unable to secure rates for over­
time work which are higher than the regular rates. In about 20 percent
of the agreements, however, even this overtime provision does not
apply to sports writers, legislative reporters, political writers, and in
some cases traveling advertising salesmen, that is, employees for whom
out-of-town assignments are routine.
In the agreements permitting cancelation of overtime, all but 11
give the company the option of paying for accumulated overtime
credit in order to avoid an excessive accumulation. Of these, about
half provide for pay at time and one-half, while the remainder merely
require payment at the regular rate.
In more than half the agreements, time off received for overtime
duty must be canceled a day at a time, while in three others time off
may be taken for half days. Such time off must be taken within
specified periods after the overtime is worked; usually the period
is 3 months, although intervals of 3 weeks to 6 months are also found.
Several agreements merely say that time off for overtime is to be
granted within a “reasonable length of time” after the accumulation
of overtime. Under more than half the agreements time off which
must be taken to cancel overtime may be added to the employee’s
vacation. In most cases the addition to the vacation is limited to a
“reasonable” amount; in a few, the extra time may be limited to
overtime accumulated during the last 3 months prior to vacation, or
not more than 1 week.
To comply with the requirements of the Fair Labor Standards Act,
many of the agreements now provide for cash payment at time and
one-half for all overtime worked after 42 hours in 1 week, while over­
time up to that point is paid by granting time off at a later date. In
four agreements, however, these overtime provisions of the act are
not applied, because of a provision that the maximum worked will be
no more than 1,000 hours in any 26 weeks or 2,000 hours in a 52-week
period. If before the end of such period the number of hours worked
by an employee reaches the maximum permitted, the employee is
given the remainder of the period off with full pay. Under these
agreements work up to 12 hours in any 1 day or 56 hours in any 1
week is allowable without the payment of time and one-half.
It is frequently required that overtime must be authorized by the
company before it is worked. Another common provision requires
that overtime worked must be reported in writing by the employee
and approved within a specified time, from 72 hours to 7 days, after
the conclusion of the assignment causing the overtime. In 7 agree­
ments failure to report such work within the proper time means the
loss of overtime credit. In about 30 percent of the agreements, the

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Federal Reserve Bank of St. Louis

830

Monthly Labor Review—April 1940

publisher is required to keep a record of overtime. Employees called
back to work after their regular shift are usually credited with 1
hour in addition to the actual overtime worked.
HOLIDAYS

In order to permit publication of holiday editions of newspapers,
over 10 percent of the agreements establish a shorter workday for
holiday work, varying from 4 to 6 hours. In these cases the regular
weekly pay is received in full. In two agreements, however, editorialdepartment workers may not be required to work more than 3 holidays
at regular pay. Two other agreements limit holiday work to a skel­
eton staff, not exceeding half the normal number, which works alter­
nate holidays. When other than regularly scheduled work is required
on holidays, it must usually be paid for at the rate of time and a half.
Except for the workers needed to put out a holiday edition, time
off with pay is generally granted on the following holidays: New
Year’s Day, Memorial Day, July Fourth, Labor Day, Thanksgiving,
and Christmas. Lincoln’s Birthday, Washington’s Birthday, Colum­
bus Day, and election day are also listed in several agreements. Other
agreements do not list the specific holidays, but provide that all legal
holidays are to be observed.
VACATIONS AND LEAVE

Annual paid vacations are established in all but one of the agree­
ments. Two-week vacations are the rule for employees with at least
1 year of service. Only two agreements establish a general vacation
of 1 week. Vacation periods up to 3 weeks annually, after longer
periods of service, are provided in 12 agreements. In one agreement
employees exempt from overtime pay are granted 4 weeks’ vacation
with full pay. Employees regularly employed on a 6-day week re­
ceive an additional week’s vacation in four agreements. About twothirds of the agreements grant vacations of 1 week to employees who
have worked less than a year but at least 6 months.
The date of vacations is usually to be arranged by the company in
advance of the vacation period, after consultation with the employees.
One-fourth of the agreements provide that the vacation is to be granted
within a specified period, usually between May 15 and September 30,
unless the company and employee agree on another date.
Prohibitions against split vacations occur in four agreements.
Seven specifically require payment for accrued vacation rights to any
employee who resigns or loses his job.
Sick leave.—Every agreement but one provides for sick leave with
full pay. Previously existing policies are incorporated into most of
the agreements, but some specify the leave rights in detail.

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Collective Bargaming by Newspaper Guild

831

In 7 agreements, the amount of sick leave is to equal the number of
weeks of dismissal wage to which the employee is entitled, and in 11,
the duration and frequency of sick leave with pay is to be decided by
the company for each individual case. In 16 agreements the company
may request a physician’s statement or substantiate claims of illness
through its own physician.
Any deduction from the employee’s accumulated overtime for sick
leave is contrary to existing practice and specifically prohibited in 40
percent of the agreements. In 14 agreements, the company may de­
duct from the sick-leave pay the amount received by the employee
under a workmen’s compensation law or a group-insurance plan. An
agreement with a weekly magazine provides extra compensation, for
employees on maternity leave, which equals double vacation pay.
Leave oj absence.—Leave of absence is expressly permitted in only
five Guild agreements. In three of these agreements, the leave may
not exceed 1 year and in two, employees elected or appointed to Guild
office may be granted leaves of absence during their term of office.
Employees taking the place of workers on leave are to be informed by
the Guild of their temporary status, being subject to dismissal when
the regular employee returns from leave.
Provisions for leave of absence without pay, for service in the armed
forces in the event the United States is involved in a war, are found
in nine agreements. Reinstatement to a former or comparable posi­
tion upon return to duty is stipulated and rights under the agreement
are to remain unimpaired. If the employee is killed in the war, the
publisher is to give his heirs the amount of the dismissal pay to which
the employee was entitled on the date he joined the Army.
LAY-OFF AND DISMISSAL PAY

Most Guild agreements contain provisions which afford employees
some protection of employment tenure. The general extent of such
provisions arises from the fact that retrenchments on newspapers
generally take the form of widespread lay-off accompanied, according
to the union, by severe overwork of those who remain employed.
In addition, the Guild has feared that lay-off of part of the staff would
follow the signing of an agreement which provided for wage increases.
Thirty-eight agreements specifically prohibit lay-offs made solely
because of the expense of putting the agreement into effect. Seven
prohibit lay-offs for economy until after the company has consulted
with the Guild and the parties agree.
The other agreements regulate the question of lay-off to some
extent. In one agreement lay-off of more than 20 percent of the
force is prohibited. These lay-offs must maintain the relative pro­
portions of union members and nonmembers and are not valid until
217593— 40—

4


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Federal Reserve Bank of St. Louis

Monthly Labor• Review—April 1940

832

after the Guild has been notified and consulted. In another, employees
may be laid off on a seniority basis. A few agreements merely say
that discussion and consultation with the Guild must precede any
lay-off.
Dismissal pay is guaranteed to employees in every agreement
except three with foreign-language papers in New York City. Dis­
missal pay is based on an employee’s length of service with the com­
pany and his rate of pay during such employment. In the majority
of Guild agreements a certain amount of pay is stipulated for a
specified amount of service up to a given limit. The most common are
1 week’s pay for each 30 weeks’, 8 months’, and 1 year’s service.
Several agreements list fixed amounts of dismissal pay for a specified
number of years’ service. In three agreements no maximum is placed
on the amount of severance pay to which an employee is entitled, but
two agreements set a maximum of $5,000. Table 1 shows the number
of weeks of regular pay due to employees dismissed after specified
lengths of service. These amounts are the highest which may be
received. Employees dismissed with less service are entitled to
proportionately smaller amounts of dismissal pay.
T a b l e 1. —Maximum

Maximum
years of
service
counted

Maximum number of
weeks’ regular pay

28 w eeks. _

... .

Dismissal P ay Provided for in Newspaper Guild Agreements

-

10
15
10X

12y2

14
10
13
14H
15
i2 a

w /2

24 weeks______ ______ - .
24 weeks
___ ______ 22w eek s._ . _. _________

20w eek s..

___________ .

12
14
15
16
12
20
12
15
19

Number
of agree­
ments
1
2
3
7
2
2
1
1
4
1
1
1
2
i
ii
2
1
1
1
2

Maximum number of
weeks’ regular pay

Maximum
years of
service
counted

20 weeks_________________
18 weeks.
__
.. . ..
18 weeks_________________
16 weeks____________ ____

20
10
14
12*6

15w eek s.. .
__________
14 weeks
14 weeks____________ _____
13 weeks . . .
...
13 w eek s.. . . . . . .
13 weeks__ _______ _____
12w eek s.. _ ................. .
12 weeks________________ _

15
8
10
9
10
17M
7
8
11
10
6
4

10 weeks__ ____________
6 w eek s.. _______________
4 weeks . ... ________ . . .
2 weeks__________ _____ „
1 w eek______ _ . . . . . .

sy

0)
(•)

Number
of agree­
ments
2
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
2
1
2

1 On dismissal.

The amount of money given for each week of dismissal-pay credit
may be based on the highest rate of pay received by an employee
during a specified period prior to his dismissal—the most common
practice—or on the average weekly salary received during a specified
period (usually 6 months or a year) prior to dismissal. For em­
ployees paid on a commission or bonus basis, the average weekly pay
received during a specified period preceding dismissal is used as the
basis. Bonuses and payments for special work are excluded from the
weekly salary in calculating severance payment in eight agreements.

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Federal Reserve Bank of St. Louis

Collective Bargaining by Newspaper Guild

833

In determining the years-of-service credit of an employee, only his
uninterrupted employment with the newspaper is considered. In a
few cases, however, a publisher has recognized all employment for
which there has not been any previous dismissal-compensation pay­
ment. Nearly all agreements with chain newspapers give credit for
employment on another newspaper in the same chain. Such “chain”
service, however, is not counted when the employee has previously
received dismissal pay from the other newspaper.
In 21 agreements the right to receive dismissal pay is unqualified
and payment must be made regardless of the reason for dismissal.
The other agreements qualify the right to dismissal pay by denying
it in a few specified cases of discharge. About a third of the agree­
ments specifically deduct leaves of absence, but not vacations or sick
leave, in computing length of service.
In two agreements, Guild members whose dismissal is caused by
loss of good standing with the Guild may be denied dismissal pay. No
dismissal pay is allowed to part-time workers or employees who have
been employed by the company less than a specified period, usually 6
months, but ranging from 15 days to 8 months in a few cases.
Although resignation ordinarily disqualifies employees from sever­
ance benefits, in eight agreements such pay is granted to employees
who retire or resign because of physical or mental break-down or
illness or accident, or after 25 years’ service, whether such retirement
is voluntary or whether the employee is retired by the company. In
four agreements the company is to pay an employee dismissal com­
pensation, on resignation, if such payment is considered justified by
the company.
PROMOTION AND TRANSFER

First consideration in filling vacancies for higher positions is given
to employees on the staff by more than 40 percent of the agreements.
Although most of the agreements do not specify the rate of pay for
employees during the time they are trying out for a promotion, a few
state than an employee promoted to a job carrying a higher rate of
pay may be paid his former rate during the trial period.
About a fifth of the agreements provide that clerks, copy boys,
office boys, and messengers are to be granted the first opportunity, in
the department in which thay are employed, to fill vacancies as cub
reporters or junior circulation or advertising jobs. These employees
are permitted a trial period of 3 to 6 months on such jobs and, if satis­
factory, are retained in the positions as “beginners.” The agreements
usually prescribe minimum rates to be paid during this try-out period,
the rates being lower than those for “beginners” but higher than their
rates as copy boy or messenger. After a certain period of experience
as “beginners,” usually 2 years, they are considered regular employees

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Federal Reserve Bank of St. Louis

834

Monthly Labor Review—April 1940

in the department. Not more than a specified percent—from 8 to 30
percent—of the total number of jobs in each department or job
classification may be held by “beginners.”
Four agreements specifically provide that when a classified adver­
tising territory falls vacant, present employees on less productive
territory are to be given an opportunity to fill the vacancy (in three of
these, on the basis of seniority).
WORKING RULES

Discharge.—Protection against unfair discharge is generally pro­
vided by listing in the agreements the justifiable reasons for discharge.
The most common are gross misconduct, neglect of duty, or insub­
ordination; dishonesty; drunkenness; and willful provocation of dis­
charge in order to secure dismissal pay. About one-fifth of the
agreements specifically substantiate the management’s right to de­
termine journalistic competence and cause for discharge, subject to
negotiation through the regular adjustment machinery if differences
of opinion should arise.
Over 50 percent of the agreements provide that, upon discharge, a
written statement from the publisher giving the reasons for the dis­
charge is to be provided the employee at his request. Several agree­
ments state that the request must be made within a specified time,
usually 72 hours; others provide that the employer’s statement must
be issued within 72 hours after request has been made. Advance
notices of discharge ranging from 2 to 3 weeks, either to the Guild or
the individual, are required by several agreements, except where the
employee is dismissed for gross misconduct.
Outside activity.—Permission is granted to employees to engage in
outside political or professional activity in approximately 75 percent
of the agreements. Employees are free to contribute material to
magazines, syndicates, or noncompeting newspapers, provided such
material is prepared on the employee’s own time. In some cases
restrictions prevent the use of the paper’s name or the employee’s
connection with the paper in his outside activities. In two agree­
ments photographers are expressly permitted to sell to outside maga­
zines pictures taken in the performance of their duties. Management
consent for staff members to engage in commercial radio work is
stipulated in three agreements.
Five agreements contain specific prohibitions against requesting
the reporter to use his influence for any purpose other than to obtain
news for publication in the paper.
Byline .—Regulations governing the use of an employee’s byline
or signature occur in one-fifth of the agreements. These provide


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Federal Reserve Bank of St. Louis

Collective Bargaining by Newspaper Guild

835

that no employee writing under his own signature is to be asked or
expected to conform to the newspaper’s editorial policy at the expense
of his personal convictions.
Equipment.—The furnishing of working supplies and equipment
by the company is the accepted practice in the newspaper industry.
In two cases cameras are specifically excluded from this requirement.
Five agreements state that an employee is not required to furnish an
automobile as a condition of employment.
Job protection.—In order to prevent elimination of jobs by requiring
employees to double up on duties, about 15 percent of the agree­
ments continue the established practice of separating the duties of
photographers and reporters except in an emergency. Two agree­
ments further state that no reporter is to be responsible for more
than one beat at any one time.
Transfer.—To facilitate freedom of employment and provide oppor­
tunity for promotion by transfer to other newspapers, over 40 percent
of the agreements prohibit arrangements between publishers not to
employ members of each other’s staffs. On the other hand, arbitrary
transfer between cities or other units of a newspaper chain is pro­
hibited in 11 agreements with local chain units, unless the employee
consents to such transfer and is paid travel and transportation
expenses.
Safety and welfare.—Provisions relating to health, safety, and sani­
tation are contained in 11 agreements. In 8, no employees are
required to work under conditions endangering life, health, or safety.
The others provide that the publisher is to furnish at all times sanitary,
sufficiently ventilated, properly heated, and well-lighted space for the
performance of all work.
Group-insurance plans in effect prior to the agreements are specif­
ically continued in several agreements.
In over one-third of the agreements the heirs or beneficiaries of an
employee are to receive an amount equal to the dismissal-pay credit
at the time of his death. In one agreement death benefits are payable
only in the case of employees with over 10 years’ service.
SETTLEMENT OF DISPUTES

The Newspaper Guild organizes all newspaper office and editorial
workers in a city into one local. On each paper, however, shop
committees are established. In large companies, separate committees
are established for each department. The shop committees check
on the enforcement of the agreement, take up grievances, and are
responsible for the collection of dues and other business affairs of the
union.
Grievances and disputes are first negotiated by the shop committee
with the company officials. Itepresentatives of the local may be

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Federal Reserve Bank of St. Louis

836

Monthly Labor Review—April 1940

called in from the beginning to assist the shop committee or may be
asked to take over negotiations if the shop committee has failed to
secure an adjustment.
A joint standing committee, composed of an equal number of
representatives of the company and the Guild, is provided in the
association’s agreement in San Francisco, an agreement covering two
newspapers under single ownership in Duluth, Minn., and individual
papers in Kansas City, Mo., and Stockton, Calif.
Time limits on the various steps in the adjustment process are not
usually set in the agreements. Five, however, specify that negotia­
tions on a case may not continue for more than 7 to 12 days before
the matter goes to arbitration.
Arbitration.—Contrary to the usual practice, less than 15 percent
of these agreements provide for arbitration of disputes arising under
the agreement, which cannot be settled by negotiations between the
parties. In the others no recourse is provided for the impartial arbitra­
tion of unsettled disputes. In a few cases, however, there has been
arbitration of particular issues.
In those agreements providing for arbitration, the company and
the union each name from one to three representatives to compose
the bipartisan board. The impartial chairman is then chosen by
the committee. In a few cases the impartial member is not added
unless the bipartisan board is unable to reach a decision. If the
parties are unable to agree on the person to act as impartial member,
two agreements provide for selection by lot from a list of names;
one specifies the American Arbitration Association; two the United
States Conciliation Service or the Secretary of Labor; and one a local
judge. In one other agreement, a local person is named to act as
chairman if both parties are unable to agree.
In three agreements the impartial chairman must be selected within
3 to 10 days, and in several agreements a time limit is imposed upon
the arbitrators. The committee is required in four agreements to
meet and hold hearings within 4 days and, in one case, within 48
hours. Written decisions must be rendered within 7 days, according
to five agreements. One agreement, which provides for arbitration
of the wage scale, permits a much longer time—45 days—before the
arbitrators must give their decision.
Strikes and lock-outs.—Guild agreements do not contain clauses
prohibiting strikes or lock-outs during the life of the agreement.
In the absence of arbitration provisions, therefore, the peaceful
settlement of disputes depends upon the success of joint negotiations.
In four press and news association agreements the union agrees
that, except on violation of the agreement by the company, its


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Federal Reserve Bank of St. Louis

Collective Bargaining by Newspaper Guild

837

members will not interfere with the production and distribution of
any news or news service which the company is obligated by contract
to deliver to any client.
Approximately one-fourth of the agreements prohibit Guild mem­
bers from handling work for shops on strike. In some cases, the
provision is to apply only if the publisher is a direct party to the
strike. Six agreements specifically state that no employee may be
required to take over the duties of any employee in another depart­
ment in the event of a strike nor to work in any department of another
newspaper where a labor dispute exists.
In five agreements Guild members are not required to pass through
picket lines formed by other unions as a result of a labor dispute at
the newspaper plant. In two of these cases, recognition of the picket
line must first be ordered by the Guild’s executive board after consulta­
tion with the publisher.
WAGE RATES AND OTHER PAY PROVISIONS

Weekly minimum wage rates according to years of experience for
selected occupations covering employees in the editorial and commer­
cial departments of newspapers, news agencies, and weekly magazines
are given in the table on page 839. No wage rates were specified in
seven agreements analyzed. Because of the wide variety of occu­
pational classifications and the lack of standardization of job termi­
nology, especially in commercial departments, only those classifica­
tions which are readily identified as similar are included.
The majority of agreements call for classified minimum wages
which are based usually on experience but sometimes on length of
service. These minimum wage rates increase according to years of
experience until the peak is reached, usually after 5 years’ experience.
Previous full-time employment as a writer or reporter for a newspaper,
press association, news or photo service, or a combination of these may
be counted as experience in computing an employee’s present wage.
In a few cases, in order to be counted, this experience must have been
on a newspaper of a specified circulation. For commercial employees,
previous employment in comparable positions is usually counted in
fixing the present wage.
Eight agreements specify that employees regularly working in more
than one job classification must be paid the highest weekly rate.
Ten stipulate that the employee is to be given the rate corresponding
to the classification occupying more than 50 percent of his time.
In practice, many employees receive rates above the minimum
provided in the agreements. Seventy of the 78 agreements specifically


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Federal Reserve Bank of St. Louis

838

Monthly Labor Review—April 1940

prohibit any pay cuts during the life of the agreement, even for
employees receiving higher than the minimum rates called for.
Except for a few specialized occupations, such as advertising sales­
men in the commercial departments, all employees coming under the
Guild agreements are paid on a straight time basis, without production
bonuses, space rates, or other commissions. A few agreements specif­
ically prohibit a change from time work to a space rate or commission
basis of compensation without the Guild’s consent.
Night-work differentials.—Pay differentials for night work are some­
times provided. In 15 agreements employees working a majority of
hours after a specified time, usually 6 p. m., receive higher rates,
ranging from 5 to 7 percent, over the established wage scale.
Part-time work.—Rates for part-time, temporary, or extra workers
are found in about 15 percent of the agreements. In all but one
agreement they are to be paid at the regular rate for the time worked.
One agreement provides that they be paid an additional 10 percent
for time actually worked, to compensate for their short-time em­
ployment.
Temporary transfer.—Provision is sometimes made for the tempo­
rary transfer of an employee to a job paying a different rate than his
usual wage. Employees shifted to higher-classified jobs are to receive
the higher scale, but are to receive their regular pay if shifted tem­
porarily to lower-classified jobs.
Expenses.—In 70 percent of the agreements the publisher is specif­
ically required to pay to the employee all authorized expenses in­
curred in the performance of duty. Compensation for the use of an
employee’s automobile in the service of the publisher, at the latter’s
request, is provided in more than 60 percent of the agreements. Six
cents per mile is the usual rate paid, although other agreements pro­
vide rates of 4 cents to 8 cents per mile. Mutually satisfactory alter­
natives to a mileage basis, such as a flat weekly or monthly rate, are
often found. Three agreements provide an additional allowance for
parking. In two agreements, the publisher agrees to pay half of the
premium for liability insurance on the car.
Other.—About one-fifth of the agreements provide that if the
management sells for profit any feature matter or pictures produced
by the employee, the latter is to receive a percentage of the net return
received by the publisher.
Out-of-town assignments for employees whose regular duties do not
require prolonged or frequent absences from the city usually require
the payment of extra time in addition to actual hours worked.


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Federal Reserve Bank of St. Louis

839

Collective Bargaining by Newspaper Guild

T able 2.—Minimum Weekly Wages in Newspaper Guild Agreements for Selected
Occupations in Various Cities
EDITORIAL WORKERS
Year of experience
City and occupation
Second
year

Third
year

Fourth
year

Fifth
year

$27.50
25.00
25.00
25.00

$32.50
34.00
30.00
30.00

$40.00
42.50
35.00
35.00

$42. 50

27.50

30.00

35.00

40.00

4 47. 50

26.50
32.50
40.00
30.00

33.00
38.00
50.00
35.00

38.50
45.00

41.00

45.00

\ «20.00

25.00

30.00

35.00

220.00

30.00
30.00

35.00
35.00

40.00
40.00

30.00
35.00

40.00
45.00

50.00
55. 00

30.00
23.08
25.00

35.00
27.69
30.00

45.00
32. 31
40.00

36. 35

40. 38

20.00
20.00

30.00
27. 50
45.00

35.00
30.00

40.00

30.00

25.00
22.50
35.00

27.50

32.50

35.00
40.00

37.50
42.50

20.00

' 22.50

2 27. 50
3 30.00

35.00

40.00

23.08
2 22.50
3 25.00
32.50
25.00
32.50

27.69
2 27.50
3 30.00
37.50
30.00
40.00

32.31
35.00
45.00
35.00
45.00

34.62

25.38
23.08

32.31
30.00

39. 93
34.86

46.15
39.93

30.00
65.00

40.00

50.00

35.00
65.00
40.00
40.00

45.00
70.00
50.00
50.00

55.00

35.00
65.00
40.00

45.00
70.00
50.00

55.00

First
year
Akron, Ohio: R eporters1_____
$22.50
Albany, N . Y .: Reporters____
20.00
Bayonne, N . J.: Reporters___
22.50
2 15.00
Birmingham, Ala.: Reporters..
3 17.50
Boston, Mass.:
Reporters_______________
25.00
Desk m en_______________
60.00
Camden, N . J.:
Reporters_______________
20.00
Rewrite m en____________
27.50
Copy readers____________
Cleveland, Ohio: Reporters__
25.00
Cumberland, Md.:
/
«
15.00
Reporters_______________
Copy editors____________
45.00
Copy editors, assistant___
40.00
Denver, Colo.:
Agreement A—Reporters. _
22.50
Agreement B—Reporters..
s 25.00
Detroit, Mich.:
Reporters_______________
25.00
Copy readers____________
30.00
Rewrite men____ ________
60.00
Inside photographers_____
20.00
Duluth, Minn.: Reporters___
18.46
El Paso, Tex.: Reporters........ .
20.00
Glendale, Calif.:
Reporters_______________
18.00
Photographers___________
18.00
Great Falls, Mont.: Reporters
25.00
Hammond, Ind.:
Reporters________________
25.00
Desk m en_______________
35.00
Jacksonville, Fla.:
Reporters_______________
3 15.00
Head photographer._________________
40.00
Kansas City, Mo.: Reporters____ ________
18.46
2
15.00
Knoxville, Tenn.: Reporters_____ ____ ___
3 17. 50
Los Angeles, Calif.: Reporters____________
25.00
Lynn, Mass.: Reporters_________________
20.00
Milwaukee. Wis.: Reporters______________
25.00
Minneapolis, Minn.:
23.08
Reporters_______________________________
Artists and lay-out men__________________
20.07
New York City:
A. City-wide circulation:
Agreement A:
Reporters_____________________ . . .
25.00
Rewrite men, copy readers, news ( 1 50.00
make-up men__________________ \ 3 55.00
Agreement B:
Reporters________________________
25.00
Rewrite men and copy readers_____
60.00
Artists__________________________
30.00
Photographers___________________
30.00
Agreement C:
Reporters_______________________
25.00
Rewrite men and copy readers_____
60.00
Artists and photographers_________
30.00
B. Suburban and local papers:
Agreement A:

Sixth
year
$45.00

40.00
40.00

45.00

60.00
60.00

60.00

37.50

50.00
40.00
50.00

36. 92
40.00
55.00
45.00
55.00

65.00
65.00

65.00

40.00
50.00
35.00
Reporters------------------------------------1{ s 30.' 00
Rewrite men_________________
30.00
35.00
40.00
50.00
Copy readers_______________ ...
50.00
55.00
45.00 - ........ .
1 The “reporter” classification also includes desk men (copy and rewrite men), photographers, and artists*
Minima for these other occupations are listed only in cases where they differ from the minimum for reporters.
2 First 6 months.
3 Second 6 months.
4 After 6 years, $55.00.
* First month.
6 N ext 11 months.


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Federal Reserve Bank of St. Louis

840

Monthly Labor Review—April 1940

T able 2.—Minimum Weekly Wages in Newspaper Guild Agreements for Selected
Occupations in Various Cities— C on tin u ed
EDITORIAL WORKERS—Continued
Year of experience
City and occupation
First
year
New York City—Continued.
B. Suburban and local papers—Continued.
Agreement B:
Reporters__________ ____ ________
Rewrite men_____
Desk men________
Photographers____
Artists___________
Agreement C:
Reporters____ ___
Desk men______ .
Artists___________
Newark, N . J.: Reporters____
Norwalk, Conn.:
Reporter________________
Desk man or sports editor.
Philadelphia, Pa.
Agreement A:
Reporters—....................
Copy readers________
Rewrite m en________
Photographers-______________
Artists______________________
Agreement B :
Reporters___________________
Copy readers and rewrite men.
Agreement C:
Reporters......... ................ ............
Rewrite men________________
Copy readersDesk assistants, senior_______________
Desk assistants, junior_______________
Pittsburgh, Pa.:
Agreement A:
Reporters.______ ___________________
Copy readers and general desk men___
Agreement B:
R eporters__________________________
Deskmen, including department editors.
Portland, Maine:
Reporters 8______ _______ ________________
Copy desks:
D ay work__________________________
Night work____________ _____________
Reading, Pa.: Reporters_____ - ______________

Second
year

$22.50
8 25.00 } $30. 00
35.00
40.
40.00
50.00
25.00
"30.00
25.00
30.00

2

2 23.00
3 25.00 } 27.00
35.00
30.00
25.00
30.00

17.00

222.00
3 26.50
222.00
55.00
20.00

2 35.00
3 40.00

$35.00
45.00

$40.00

35.00
40.00

40.00
50.00

Fifth
year

Sixth
year

30.00
35.00

45.00

$50.00

27.00

32.00

35.00

(7)

25.00
2 40.00
3 45.00
37.50
30.00

31.00
2 50. 00
3 55.00
40.00
35.00

36. 50
60.00
45.00
40.00

42.50

$45.00

50.00
45.00

52. 50
47.00

35.00

40.00

45.00

47.00

26. 50

33. 00

38.00

44.00

50.00

30.00
45.00

35.00
50.00

40.00
60.00

45.00
65.00

55.00

60.00

65.00

3 26. 50
20.00

Fourth
year

22.00

47. 50
22. 50
2 30.00
8 35.00
35.00

Third
year

20.00

to
40.00
75.00
60.00
25.00
24.00

30.00
30.00

35.00
35.00

45.00
50.00

45.00
50.00

50.00
55.00

25.00

30.00

35.00

45.00
50.00

45.00
50.00

50.00
55.00

25.00

32.50

40.00

40.00
42.00

43.00
45.00
2 27. 50
3 30.00
32.00

35.00

35.00
37.00
17. 50
f 2 20.00

2 20.00

3 22. 50
27.00

40.00

Rochester, N . Y.: Reporters_________________ 1 3 22. 50
42.00
37.00
2 15.00
Rockford, 111.: Reporters____________________
35.00
30.00
25.00
3 17. 50
St. Louis, Mo.:
Agreement A: Reporters_________________
20.00
45.00
37. 50
27. 50
32. 50
Agreement B: Reporters__ ____ _________
30.00
50.00
45. 00
40.00
Salem, Mass.:
Reporters______________________________
18. 00
36.00
24.00
Copy desk workers______________________
52. 50
San Diego, Calif.: Reporters__________ - ______
20.00
35.00
30.00
22. 50
25.00
San Francisco, Calif.:
Agreement A »_________ ____ ____________
20.76
36.92
32. 31
23. 08
27.69
Agreement B—Reporters:
Morning papers_____________________
25. 38
50.00
41.54
45.00
30.00
Afternoon papers____ _______________
22.12
44.26
38.72
27.67
33.18
Seattle, Wash.:
45.00
25.00
Agreement A: Reporters________________
40.00
35.00
30.00
Agreement B: Reporters__________ ______
50.00
25.00
40.00
35.00
30.00
2 First 6 months.
3 Second 6 months.
7 After 6 years’ newspaper experience, $42.
8 Night work 5 percent higher.
8 Foreign-language newspaper.


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Federal Reserve Bank of St. Louis

47.00
40.00
50.00
43.00
45.00
41.54
57.69
55. 32

841

Collective Bargaining by Newspaper Guild

T able 2.—Minimum Weekly Wages in Newspaper Guild Agreements for Selected
Occupations in Various Cities— C on tin u ed
EDITORIAL WORKERS—Continued
Year of experience
City and occupation

Stockton, Calif.:
Agreement A: Reporters_________________
Agreement B: R eporters_____________ . .
Washington, D . C.:
Agreement A:
Reporters. . _______ _________ . _ _
Copy readers and rewrite m en________
Agreement B: Reporters____ __________
Agreement C: Reporters_________________
Wilkes-Barre, Pa.:
Reporters___ . . . _____________________
Desk men, rewrite men, and copy readers—

First
year

Second
year

Third
year

Fourth
year

Fifth
year

$20. 00
17.50

$22. 50
20.00

$27. 50
25.00

$34.50
32.00

$40.50
38.00

Sixth
year

$45.00
42.50

25.00

35.00

45.00

25.00
25.00

42. 50
40.00

50.00
50.00
45.00

55.00

35.00
35.00

25.00
25. 00

28.50
29.50

32.00
34.00

35.50
38.50

39.00
43.00

42. 50
47. 50

$28.00
55.00
24.00

$30. 00
60.00
25.00

$50. 00

io $55.00

41.00

50.00

COMMERCIAL EMPLOYEES
Boston, Mass.:
Agreement A:
Outside classified solicitors___________
Advertising solicitois............ .....................
Collectors________ __________________
Agreement B:
Classified street sales solicitors________
Local and national display advertising
solicitors________ ______ ____ _______
Collector____ ___________ ____ _______
Cleveland, Ohio:
Classified advertising solicitor..___ _______
Local and national display salesmen______
Transient collectors______________________
Contract collectors.______________________
Denver, Colo.:
Outside classified salesmen_______________
Collectors_______________________________
Detroit, Mich.:
Classified advertising outside salesmen____
Advertising collectors, Class A ___ ________
Advertising collectors, Class B ____________
Duluth, Minn.:
Classified advertising outside salesm en..___
Display advertising outside salesmen______
Collectors_____________ ____ ____________
Glendale, Calif.:
Outside classified salesmen_______________
Display advertising salesmen_____________
Collectors____ __________________________
Great Falls, Mont.:
Outside display salesmen________ ____ ___
Circulation city solicitors and collectors____
Hammond, Ind.: Outside display salesmen____
Indianapolis, Ind.:
Outside classified salesmen____ __________
Display salesmen________________________
Collectors___________________ _________
Los Angeles, Calif.:
Outside classified salesmen of—
Less than 6 weeks’ experience_________
More than 6 weeks’ experience________
Display salesmen:
Major accounts______________________
Minor accounts______________________
Advertising and circulation collectors_____
Lynn, Mass.: Display advertising salesmen___
New York, N . Y.:
Agreement B: Classified advertising solici­
tors (outside)__________________________
Agreement C:
Outside classified display salesmen____
Collectors__ _______ _________________
Philadelphia, Pa.:
Agreement A:
Classified solicitors___________________
Local display solicitors___ ____ _______
10 After 6 years, $60.


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Federal Reserve Bank of St. Louis

$24.00
35.00
22.00

$26. 00
45. 00
23. 00

25.00

30.00

35. 00

40.00

30.00
22.00

35.00
25.00

40.00
28. 00

45. 00

25. 00
25.00
18.00
20.00

27. 50
30.00
20. 00
25.00

30.00
35.00
30.00

35.00
45.00
22. 50
32.50

22. 50
22.50

25.00
25.00

27.50
27.50

30.00
30.00

20.00
20.00
18.00

25.00
25.00
20.00

30.00
22. 50

32.50

18.00
25.00
15.00

21.00
29.00
17.50

24.00
33.00
20.00

27.00
36.00
22.50

30.00
39.00

18.00
18.00
18. 00

20.00
20.00
20.00

25.00
25.00
25.00

30.00
30.00
30.00

35.00
35.00

25.00
20.00
25.00

30.00
25.00
35.00

35.00
30.00
37.50

45.00
35.00
40.00

42.50

17.50
20.00
17. 50

20.00
25.00
20.00

25.00
30.00
22.50

30.00
35.00

35.00
40.00

45.00
35.00
30.00
27.50

50.00
42.50
32.50
32.50

55.00
47.50

60.00
50.00

37.00

41.00

25.00
32.50

35.00

35.00
25.00
25.00
18. 50

40. 00
30.00
27.50
22.50

22.00

24.00

26.00

28.00

35.00
21.00

38.00
23.00

41.00
25.00

45.00
27.50

22.00
25.00

25.00
30.00

30.00
35.00

35.00
40.00

40.00

47.50

Monthly Labor Review—April 1940

842

T able 2.— Minimum Weekly Wages in Newspaper Guild Agreements for Selected
Occupations in Various Cities— C on tin u ed
C O M M E R C IA L E M P L O Y E E S -C o n tin u ed
Y ear of experience
C ity and occupation
First
year
Philadelp h ia, P a .—C ontinued.
A greem ent B:
Classified solicitors____________________
$20.00
Local and n ational d isp lay solicitors___
25.00
P ittsb u rgh , Pa.:
Classified solicitors (street)_________________ n 25.00
D isp la y solicitors (local and n a tio n a l)______
30.00
22.50
Collectors_________________________________
Portland, M aine:
Classified advertising salesm en _____________
15.00
Collectors_________________________________
18.00
S t. L ouis, M o.:
A greem ent A:
Classified salesm en 72__________________
20.00
C ollectors,_____ ___________________
15.00
A greem ent B :
C lassified street so lic ito rs._____________
25.00
D isp la y solicitors______________________
30.00
A greem ent C:
C lassified salesm en ____________________
20.00
15.00
C ollectors_____________________________
San Francisco, Calif.:
[is 25.00
Outside classified advertising sales person s14 18 32.50
[ 3 35.00
A dvertising collectors______________________
30. 00
Seattle, W ash.:
A greem ent A:
O utside classified advertising sa lesm en 17
20.00
D isp la y solicitors:
M ajor accounts____________________
25.00
M inor accoun ts___________________
25.00
A dvertising collectors__________ ______
20.00
A greem ent B:
Classified outside salesm en ____________
20.00
D isp la y salesm en, A ___________________
25.00
D isp la y salesm en, B _______ ______ ____
30.00
A ssistant ad vertising collectors________
20. 00
W ashington, D . C.: Collectors (ou tsid e)_______
18.00
W ilkes-Barre, Pa.: Outside salesm en and col­
18.00
lectors_______________________________________

Second
year

T hird
year

Fourth
year

Fifth
year

$35.00
45.00

$40.00

30.00

$30.00
40.00

35.00
25.00

40.00
27.50

17.50
20.00

24.00
24.00

27.50
28.00

25.00
17.00

27.50
18.50

30.00
22.50

30.00
40.00

35.00
45.00

42.50
50.00

22.50
17.00

25.00
18.50

27.50
22.50

$ 20. 00

Sixth
year

$45.00

is 30.00

37.50

25.00

30.00

35.00

30. 00
27. 50
22. 50

40.00
30.00
25.00

50.00
35.00

25.00
27. 50
35. 00
22. 50
19. 00

30.00
30.00
40.00
25.00
20.00

22.00

25.50

35.00
45.00

50.00

29.00

33.00

37.50

$35.00
40. 00

$40. 00
45.00

$45. 00
50.00

N EW S W IR E SERV ICES
N ational agreem ent—Reporters:
A pprentice Press A ssociation n ew sm en in—
C ities under 500,000 p opu lation __ . . .
Cities ovpr 500,000 popu lation __________
Experienced Press A ssociation new sm en in—
C jties under 500,000 popu lation . .
C ities over 500,000 p o p u la t io n .___ __ .
C leveland, Ohio:
A greem ent B: Reporters 18________________
C olum bus, Ohio: R eporters___ . . . . . .
N ew Y ork, N . Y .:
R ew rite m e n .. __
. . . .
_____ . . .
W ashington, D . C.: Research and staff w riters..

$22. 50
25. 00

$25. 00
30.00

$30. 00
35. 00

25.00
25.00
25. 00

30.00
30.00
30.00

35.00
35. 00
35.00

45. 00
45. 00
42. 50

fi« 45. 00
U« 55.00 /
65.00
40.00

42.50

45. ÖÖ

47.50

$75. 00

50.00

W E E K L Y N E W S M A GA ZINES
N ew York, N . Y.:
A greem ent A: W riters and staff w riters____
A greem ent B:
A pprentice writers—6-month trial p eriod .
W riters________________________________

$40. 00

$50. 00

$65. 00

35.00
45. 00

65. 00

90.00

3 Second 6 m onths.
n P lu s bonus and com m ission.
13 In ad dition to regular w eek ly w age, each present solicitor is to receive com m ission, on the sam e or
sim ilar basis as now existing, and each n ew solicitor on a sim ilar basis,
is P lu s 1 cent per line com m ission.
H W eekly guaranty.
I® Beginners.
>6 A fter 60 d ays.
17 M inim um guaranty.
I®A lthough this agreem ent is N ation -w ide, the wage scales listed ap p ly to em ployees in the C leveland
office on ly. For editorial em ployees of th is agency in other cities, th e scale in effect on other papers of this
chain or on d aily service clients of this agency in such cities apply,
i* F irst 60 days.


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Federal Reserve Bank of St. Louis

Wartime Emergency Controls

FAMILY ALLOWANCES FOR MOBILIZED MEN 1
Great Biitain
MANY British employers have voluntarily established, in behalf of
their workers who have been mobilized, schemes providing supple­
ments to the family allowances which are granted by the Government.
Among the large firms providing such plans are included banking,
cement, chemical, electrical-equipment, road-transport, soap, pottery,
and textile establishments.
The plans, which may be modified or discontinued by employers,
are ordinarily applicable to all persons employed by the establishment
before enlistment or conscription. In some cases these men must
have been in the service of the establishment for 6 or 12 months.
A few establishments pay supplements, equal to the excess of previous
earnings over the service pay and allowances, to married and single
persons alike. The civil service and local-government service also
follow this practice. More frequently, however, the establishments
differentiate between single and married men. Furthermore, they
deduct from the amount of the previous earnings not only the military
pay and allowances, but also the estimated value of the mobilized
man’s rations and clothing, which is computed at 8s., 10s., or 15s. per
week. For married men and single men with dependents, the grant
made by employers is usually equal to the full amount of the excess
as thus computed. For single men who have no dependents, a flatrate supplement may be paid (for example, 5s. per week), or a part
only of the excess (for example, one-third). In some instances the
supplemental grant may be a lump sum equal to 2 months’ pay.
Netherlands
When their income ceases as a result of their breadwinners’ call to
the colors, the families of men under military service in the Nether­
lands are paid allowances, under the Military Service Act of 1922 and
a decree of February 1922 as amended September 29, 1939.
1 Data are from International Labor Office, Industrial and Labor Information (Geneva), issues of January
15 and 29, and February 5, 1940.


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Federal Reserve Bank of St. Louis

843

844

Monthly Labor Review—April 1940

The dependents of a mobilized man, under the Military Service
Act, are his relatives in the direct line, and others in the second degree,
foster parents, and others for whose support the man is legally re­
sponsible. These grants to dependents are payable if the man’s
military service is compulsory. If such service is voluntary, allow­
ances may be provided.
The total daily maximum allowance is 3 florins per day of active
service. The allowance cannot, however, be more than the income
loss which the dependent actually suffers because of his breadwinner’s
conscription, nor more than a sum sufficient for maintenance, taking
into consideration any other income that the dependent may have
during the breadwinner’s military service. The loss which the de­
pendent suffers is defined as (1) the amount contributed by the soldier
previous to his mobilization, (2) if this sum is not representative of his
contribution (because of irregular earnings), the average contribution
to the support of the dependent during the 12 months before his con­
scription, or (3) an amount computed in accordance with such prin­
ciples as the Minister of Defense may lay down.
Yugoslavia
A national system of allowances for soldiers’ families has been
provided for by a decree issued by the Yugoslav Government, under
the Finance Act of 1939-40. The new scheme takes the place of
a system under which the granting of relief to families of soldiers was
the function of the municipalities.
Allowances are paid only to mobilized men’s families who have no
means of subsistence, because their breadwinners are in military
service. A single allowance is granted for all persons who are actual
dependents of the mobilized man. This may be paid to the legitimate
wife and children or in case the soldier has no wife or children, to
relatives in the ascending line. If he has no relatives as above
described, the grant may be made to other specified dependent
relatives.
The allowance is fixed at 8 dinars per day in localities having a
population of at least 20,000 or in “ assimilated” localities. In all
other localities the grant is 5 dinars per day.
A special committee responsible for the granting of allowances is
attached to each district court. The judge of the court serves as
chairman of the committee. To this body the administration of the
Commune in which the family of the soldier resides refers the applica­
tion for the allowance.


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Federal Reserve Bank of St. Louis

Wartime Emergency Controls

845

REINSTATEMENT OF SOLDIERS IN CIVIL EMPLOYMENT IN AUSTRALIA
AUSTRALIAN workers who are undergoing training in the militia
and those who have volunteered for active duty in the present war are
to be reemployed upon their return to civil life, under the terms of
special regulations adopted (statutory rule No. 176, of 1939).1
Reemployment must be in an occupation and under conditions
not less favorable to the employee than those which would have
applied had he remained in the regular employment. This applies
with respect to any increase in pay to which he would normally have
been entitled. Upon reinstatement, no employee may be discharged
without reasonable cause. The employer will be relieved of his
obligations if he proves that (1) the employee failed to apply for
reinstatement within 1 month of the termination of his military
service, or (2) he failed to present himself without reasonable excuse,
(3) it was not reasonably practicable to reinstate the employee, or
(4) the offer was made to reinstate the employee in the most favorable
position and under the most favorable terms possible.
Provision is also made for the fair adjustment of the contracts of
employment for apprentices. The Minister of Labor may by order
relieve the parties of their obligations under an apprenticeship con­
tract and may extend the contract for a period equivalent to the period
of war service.
W

W

W

OVERTIME PAY IN FRANCE
AS A WAR measure, the normal workweek in France was fixed at 45
hours by a decree providing for the control of hours and wages,
issued September 1, 1939. Overtime pay, first fixed at 75 percent of
the normal hourly rate, was successively reduced to 66% percent and
to 60 percent;2 the proceeds of the reduction go into the national
treasury. A decree issued by the Minister of Finance, December 5,
1939,3 established the methods of calculating the 40-percent reduction
to be made from overtime pay and also the conditions for the pay­
ment of the amount of such reduction to the Treasury. The reduction
in pay does not apply to overtime worked to prevent accidents or
correct their effects, or to make up for collective stoppages of work;
nor are hours which have been permanently added to the workweek
of an establishment considered as overtime for the purposes of the law.
1 Employers’ Federation of New South Wales. The Employers’ Review, Sydney, January 31, 1940.
2 See M onthly Labor Review, December 1939 (pp. 1368. 1370).
1 Journal Officiel, Paris, January 7, 1940.


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Federal Reserve Bank of St. Louis

846

Monthly Labor Review—April 1940

The amount of the reduction is calculated on the total wages of
each worker, including those who are on piece work and those who
have completed only part of the scheduled hours, who work in estab­
lishments or parts of establishments working longer hours than those
fixed by statute.
The rate of the reduction is obtained by multiplying by 4%0o the
fraction by which the weekly hours exceed 40 hours (the normal
week under legislation previous to the decree of September 1, 1939.)
Thus, when the weekly hours of an establishment or part of an estab­
lishment are fixed at 45 hours, the percentage reduction on the total
wages, obtained by multiplying %5 by 4%oo, is 4.44 percent. The
corresponding reduction in establishments working 48 hours amounts
to 6.66 percent; 50 hours, 8 percent; 54 hours, 10.37 percent; and
60 hours, 13.33 percent. The hourly rate for overtime is the same
as for regular hours. Salaried employees paid by the month in
commercial undertakings, and administrative employees in industrial
establishments, are subject to a reduction of 40 percent on that part
of the salary payable for hours worked in excess of the hours legal for
the occupation. Bonuses and fees which are intended to compensate
for extra hours are also subject to the reduction. Personnel whose
pay is independent of the hours of work, as well as those paid by the
month in production services of industrial enterprises, are subject to
a direct 40-percent reduction on any increases, including bonuses and
fees, granted since September 1, 1939, because of longer hours worked
in the establishment.
The tax is deducted by the employer and is paid to the collector of
direct taxes at the head office of the establishment or enterprise. The
taxes for any 1 month must be paid to the Treasury within the first
15 days of the following month. Such taxes were made payable at
the new rate on and after November 1, 1939. Employers are required
to keep exact records of hours, pay, and the tax deduction for each
employee, and must preserve these records for 3 years. They
must be delivered upon demand to the agents collecting the taxes.
A voucher must be given to each employee when he receives his pay,
showing the amount deducted from his salary or wages.
Failure to make the deductions or any part of them on the part of
the employer will result in a 25-percent increase in the corresponding
payments to the Treasury.
As regards workers in mines and quarries and related industries,
the wage deductions established by the decree of October 30, 1939,
remain in effect.4
4 See M onthly Labor Review, December 1939 (p. 1371).


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Federal Reserve Bank of St. Louis

Wartime Emergency Controls

847

WAR-RISK BONUS FOR SEAMEN IN INDIA
A WAR-RISK bonus for the crews of ships engaged in international
trade will be provided for the duration of hostilities, in accordance
with an agreement of November 30, 1939, reached in Calcutta between
the shipowners’ and seamen’s organizations of India.1
The bonus amounts to an additional 25 percent of the basic wages
being paid September 1, 1939—an increase of 25 percent having been
agreed upon in October. The bonus is retroactive to November 1,
1939, for all seamen engaged under articles of agreement concluded
for 12 months. For seamen who have been employed for more than
12 months, and whose wages were raised at the time of the extension
of the articles, the bonus will be computed on the wage originally
agreed upon and not on the increase.

COMPENSATION SCHEME FOR SWISS SOLDIERS
A SYSTEM of special compensation funds to cover the loss of wages
of Swiss citizens in active military service was established by a decree
issued by the Swiss Federal Council, December 20, 1939.2 The decree
covers employees and wage earners under contract at the time of
mobilization, home workers, and commercial travelers, who are called
into active service, also unemployed persons, if they had worked as
much as 150 days in the preceding 12 months, exclusive of any time
spent in military service. Workers who are employed only seasonally
or periodically will be covered by special regulations. Compulsory
military service for at least 2 weeks, supplementary military service,
as well as service in the passive air defense corps and the health organi­
zations of the Red Cross are considered as active service.
The allowance is paid for each day of active duty and includes a
household allowance and children’s allowances. The rate for mar­
ried men is 2.90 francs per day in rural regions, 3.35 francs in suburban
areas, and 3.75 francs in cities. If the wage exceeded 10 francs per
day, the allowance is increased according to the wage rate up to a
maximum of 0.75 franc per day. The children’s allowances payable
up to the age of 15, or 18 if unemployed, are 1 franc, 1.45 francs, and
1.80 francs, respectively, according to locality, for the first child and
1 franc, 1.20 francs, and 1.50 francs for each additional child. These
allowances may be granted by the competent cantonal authority to
1Data are from International Labor Office, Industrial and Labor Information (Geneva). January 22,1940.
2D ata are from report from Leland Harrison, American Minister, Bern; and Switzerland, Arrêté du
Conseil fédéral, December 20, 1939.

217593— 40-------5


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Federal Reserve Bank of St. Louis

848

Monthly Labor Review—April 1940

members of the household who are unable to work. The total amount
of the allowances may not exceed 90 percent of the former wage
when it was less than 6 francs per day and 80 percent in other cases.
The maximum allowance payable is 12 francs per day. The allow­
ance for unmarried men with no legal dependents is 0.50 franc per
day during active military service.
The contributions to the funds are divided as follows: 25 percent
by the employers, 25 percent by employed workers, 33% percent by
the Federal Government, and 16% percent by the cantonal govern­
ments. The special levies amount to 2 percent on pay rolls and 2
percent on wages, and will be paid into special compensation funds,
either in charge of the employers’ organizations or the cantonal gov­
ernments.
The decree provides that a special commission will be appointed
by the Federal Council to supervise the administration of the funds,
and each fund will have a special arbitration committee on which
employers and workers will be represented. The decree was effective
January 1, 1940.


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Federal Reserve Bank of St. Louis

Industrial Relations

ENFORCEMENT CLAUSES IN UNION AGREEMENTS 1
COLLECTIVE bargaining ordinarily results in a written agreement,
signed by the employer and the union representatives. Most union
agreements are in effect for an agreed period of time, usually a year,
although some agreements remain in effect indefinitely until either
party gives notice of a desire to change some or all of the provisions.
The enforcement of union agreements depends upon the good faith
and mutual cooperation of the parties concerned, since in the United
States the problem of enforcing agreement provisions has rarely been
taken before the courts. In union agreements certain working condi­
tions are provided for and mutual rights and duties are established.
In order to insure stability and orderly process in industrial relations,
it is usually provided in addition that the employer will not lock out
his workers and that the employees will not strike during the life of
the agreement. In some cases these rights are waived only as long
as the provisions of the agreement are being carried out. In either
case, however, provision is usually made for arbitration of the dis­
putes which are likely to arise in the day-to-day functioning under the
agreement. These disputes may concern differences over interpreta­
tion of the agreement or new circumstances not foreseen at the time
the agreement was signed.
A few agreements provide a system of fines and penalties for viola­
tions by either party. These are most common in the clothing trades
where the unions have faced serious problems in connection with
“runaway” shops and the jobber-contractor relationships. Occa­
sionally, in other industries and trades, there is provision for specific
penalties in case of violations by the employer, the employee, or both.
The present analysis of the enforcement provisions is based upon
7,000 agreements on file in the Bureau of Labor Statistics.
Period of Effectiveness
Mutual willingness to abide by the terms of an agreement is fre­
quently expressed by a general statement to the effect that the agree­
ment is in force and binding until its termination.
1 Prepared by the Industrial Relations Division, Florence Peterson, chief.


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Federal Reserve Bank of St. Louis

849

850

Monthly Labor Review—April 1940

This agreement shall become effective as of the date hereof and shall continue
in full force and effect for one year from its date.
The terms of this agreement or any modification thereof, shall be binding until
its termination, and shall cover the plant where Local Union ----------- has
jurisdiction.

Prohibition of Strikes and Lock-Outs
In addition to a general expression of mutual intent to abide by the
terms of the agreement, quite frequently there is a specific provision
that there shall be no strike nor lock-out during the life of the agreement.
In some cases the promise not to suspend work is modified by a
provision that all means of settling controversies specified in the
agreement shall be exhausted before a strike or lock-out is instituted.
Should differences arise between the company and the union or its members
employed by the company as to the meaning and application of the provisions
of this agreement, there shall be no suspension of work on account of such dif­
ferences until and unless all means of settling any such controversy under the
provisions of this agreement shall have failed.
There shall be no stoppage of work either by strike or lock-out because of any
proposed changes in this agreement or disputes over matters relating to this
agreement. All such matters must be handled as stated herein.
There shall be a joint conference committee of five; two representing the
union, two appointed by and representing the employer, and one acceptable to
both employees and employers.
All questions or disputes which are not adjusted between the union and the
employers shall be referred to this committee, whose decision will prevail.

Some agreements between unions and employers’ associations
outline in detail the specific obligations of both parties in disciplining
their own members for violations of the no-stoppage clause. An
example of this type of provision is the following from an agreement
in the New York clothing industry where there has been stable
collective bargaining for years.
During the term of this agreement, there shall be no general lock-out, general
strike, individual shop lock-out, individual shop strike, or shop stoppage for any
reason or cause whatsoever. There shall be no individual lock-out, strike or
stoppage pending the determination of any complaint or grievance. Should the
employees in any shop or factory cause a stoppage of work or shop strike or should
there result in any shop or factory, a stoppage of work or shop strike, notice thereof
shall be given by the council to the union. The latter obligates itself to return the
striking workers and those who have stopped work, to their work in the shop,
within 24 hours after the receipt by the union of such notice, and until the expira­
tion of such time, it shall not be deemed th at the striking workers have abandoned
their employment. In the event of a substantial violation of this clause on the
part of the union, the council shall have the option to terminate this agreement.
The existence or nonexistence of such substantial violation shall be determined
by the impartial chairman as constituted under this contract, on all the facts and
circumstances.
Should any member of the council cause a lock-out in his or its shops or should
there result in any shop or factory a lock-out, notice thereof shall be given by the
union to the council. The council obligates itself, within 24 hours after the

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Federal Reserve Bank of St. Louis

Industrial\Relations

851

receipt of such notice, to terminate the lock-out and to cause its members to
reemploy the workers, and until the expiration of such time, it shall not be deemed
th at the employer has forfeited his rights under the agreement. In the event of
a substantial violation of this clause on the part of the council, the union shall
have the option to terminate this agreement. The existence or nonexistence of
such substantial violation shall be determined by the impartial chairman on all
the facts and circumstances.

Arbitration
If the procedure established for settling grievances includes refer­
ence to arbitration, an automatic method is provided for securing
enforcement of the agreement. Most union agreements provide for
some kind of arbitration. Under those agreements establishing an
arbitration committee or an impartial chairman to function through­
out the life of the agreement, arbitration becomes a much more effec­
tive method of enforcement than in the agreements providing for the
creation of the arbitration committee only after the dispute occurs.
To the joint standing committee shall be referred for settlement all disputes
arising out of the operation of this agreement, all disputes regarding the inter­
pretation of any portion of this agreement, and all disputes regarding discharged
men. The joint standing committee must meet within 10 days from the date on
which either party hereto through its authorized representative, notifies the other
party in writing th at a meeting is desired, and shall proceed forthwith to settle
any question before it. Such decision shall be final and binding on both parties
to this contract.
In the case of a dispute between the union and the company on any m atter
pertaining to rates of pay, wages, hours of employment or grievances of employ­
ees, all reasonable efforts to settle such disputes shall be made by the shop com­
mittee and the company. Such efforts failing, an arbitration board of three shall
be chosen, one by the shop committee of the union, one by the company, and a
third by the first two selected. The decision of such board on all disputes shall
be final and binding. Under no circumstances shall a strike or lock-out be called
on account of any such dispute.

Enforcement of the arbitration award, as in the case of the agree­
ment provisions, is dependent chiefly upon cooperation and good faith
between the employer and the union. Agreements usually provide
that the award is to be final and binding on both parties. A few
specifically mention that arbitration awards may be enforced by court
action. ;
It is further agreed th at the decision or award of the board of arbitrators shall
be binding and conclusive upon the parties, and the parties stipulate and consent
th at the findings, decision and award made by the board of arbitrators may be
enforced by appropriate action in a court of law or equity.

Fines and Penalties
Employers and unions generally rely for enforcement upon methods
other than the imposition of fines and penalties. Where the latter are
resorted to, they may be explained by conditions peculiar to the
industry or by recent difficulties in maintaining the collective­
bargaining relationship.

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Federal Reserve Bank of St. Louis

852

Monthly Labor Review—April 1940

Thus, some industries, such as clothing manufacture, may be char­
acterized by instability. The small investment required and the
highly seasonal nature of the operations, make it possible for a shop
to close down and reopen elsewhere if the employer desires to avoid
the terms of the agreement. In order to protect its members, there­
fore, the union may obtain a provision in the agreement requiring the
employer to deposit a specified amount which will be forfeited if the
agreement is violated.
As security for the faithful performance of this agreement on his part, the
employer hereby agrees to deposit the sum of ------ with the union. Title to the
money thus deposited shall pass to the union upon the signing of this agreement,
but such sum shall be returned to the employer by the union, upon the termination
of this agreement, provided the employer has performed all the terms of said
agreement.
The company shall post a bond in the amount of $5,000, to be forfeited for
violation of any part or parts of this agreement.
Any violation of the wages, hours, or union shop clauses shall call for an auto­
matic decision by the joint committee th at a cash bond of $500 be posted to insure
future compliance.

Where severe competition encourages wage cutting, as in the
millinery industry, the agreement may provide for payment of dam­
ages to recompense the workers who have suffered wage cuts and to
offset any competitive advantage an employer may have obtained
through the violation. In other cases, if the employer has failed to
live up to the terms of the agreement, a bond may be required in order
to discourage future violations.
In the event the board of arbitration shall adjudge any employer guilty of any
violation of any of the terms, conditions, and provisions of this agreement, it may
in addition to any directions or orders which it may make in the premises, impose
a fine in money, which shall be paid by such employer within 3 days after the im­
position of such fine. The amount of such fine shall be discretionary with the
board of arbitration and shall be determined with reference to the nature and
extent of the violation; it shall be sufficiently adequate to offset any advantage
gained by the employer by reason of such violation and in addition thereto ap­
propriately and fairly penalize him therefor.

Some provisions specify the amount of the fine which will be con­
sidered fair compensation if either the union or the company violates
the agreement.
The parties hereto hereby agree that the following sums are fair and just in
liquidation of damages because of violation of this agreement: Violations
by individual members of the parties hereto $50 to $250 for each violation;
violation by either party hereto, or its officers or representatives, $250 to $1,500
for each violation. Each of the parties hereby agrees for itself and its members
to pay to the other, within 30 days, any sum or sums so assessed because of viola­
tions of agreement by itself, its officers or representatives, or its member or
members.


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Industrial Relations

853

Should either party to this agreement fail to pay the amount so assessed within
30 days of its assessment, the party so failing to pay shall be deprived of all the
benefits of this agreement until such time as the m atter will have been adjusted
to the satisfaction of the joint conference board.
Neither party to this agreement shall declare a lock-out or strike without 5 days’
written notice to the other party, but no such notice shall be given by either party
until the arbitration committee mentioned in article------hereof has acted upon the
grievances and disputes in question. For any violation of this provision by the
employer, the employer shall forfeit and pay to the union the sum of $1 per day
for each union employee in his service at the time of such lock-out; and for any
violation of this provision by the union, the union shall forfeit and pay to the
employer the sum of $1 per day for each union employee in the service of the
employer who engages in such strike, to be paid during said 5-day period and
thereafter at the rate of $1 per day.

The union or individual employees may also be required to pay
fines for violations of provisions such as those prohibiting stoppage of
work. More frequently, the agreement or the arbitration award may
require that the lost time be made up, or, in extreme cases, that the
workers involved be suspended or discharged.
Any member who is an employee of company who shall leave his or her station
before completing the shift, shall be fined one day’s pay, or such portion of pay
as is due an employee who has worked part of one day, and such fine shall be
remitted to company.
The union agrees that there will not be any strikes or stoppages of work during
the life of this agreement. Any employee or employees guilty of throwing the
plant idle or of materially reducing the output of the plant shall at the option of
the company either be discharged or be fined $3 each and $1 per day for each
additional day or part of a day they remain idle. This penalty shall also apply
to men who, though not formally striking, shall wdthout notice quit work as a
subterfuge.
The penalties and payments hereinabove in this article provided for shall not be
collected unless it be mutually agreed th at this contract has been violated, or
lacking such mutual agreement, unless the m atter has been referred to the board
of arbitration provided for in article----- - hereof, and the board of arbitration has
decided th at the contract has been violated. All fines and penalties due from em­
ployees under this article shall be collected and retained by the company from the
first moneys thereinafter due from the company to such employees.
In order to prevent illegal strikes in violating this agreement, the international
union guarantees to support fully the company in maintaining operations, and to
use its best efforts to supply the company with union men to replace those striking
in violation of this agreement.

Penalties may also take the form of depriving the employer of certain
privileges received under the agreement. Union labor may be with­
held until the employer has ceased the violation or compensated for it
in some prescribed manner. When the union label or shop card is
widely used, as in the printing trades, the union is authorized to with­
draw the use of the label or card when violations occur.
Where it has been proven th at an employer or signee of this agreement has
violated the articles of this agreement, he shall be deprived of the benefits hereto,
and before the same shall be in force again, he will be required to pay Local
U nion------the expenses of investigating his shop.

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Federal Reserve Bank of St. Louis

854

Monthly Labor Review—April 1940

That if it is proven to the satisfaction of the executive board that an employer
has discharged or laid off a member of Local U nion------for upholding these rules
the employer will be deprived of union help until such matters have been settled
and all expenses have been paid to the men for the loss of time.
Any violation of this clause shall subject the owner of the shop to the loss of the
label of the Allied Piinting Trades Council upon first offense; upon second offense
the m atter shall rest for determination with Local U nion------.

Aids to Enforcement
Union agreements sometimes contain provisions designed to aid
unions in obtaining adequate information in order to facilitate check­
ing up on the employer’s compliance with the agreement. Some
agreements grant union representatives access to the plant for check­
ing on compliance. In others it is provided that pay rolls and other
personnel records may be examined by representatives of the union
or, in some cases, by accountants hired by the union. Then, too,
advance notice of discharge or lay-off may be required in order to
give the union adequate time for checking to see if the provisions of
the agreement have been carried out.
For the purpose of assisting in the adjustment of grievances and compliance
of this agreement, and not for union activity unless otherwise specified in this
agreement, any authorized representative of the union shall have admission by
pass, from the management, to the shops of the employer at any time during
working hours.
Shop pay-roll records and all records bearing on seniority and pay rolls will be
open for inspection by the shop grievance committee, or other representative of
the union authorized to make such inspection.
Upon request of the union, the joint committee, through any investigator or
accountant th at said joint committee shall agree upon, shall examine the books
of any said association member for the purpose of determining whether or not
said association member has violated or is violating the provisions set forth in
this agreement with reference to hours or wages, or to determine if any member
of said association is doing work for a manufacturer against whom the union is
striking, and the costs of such investigation shall be borne equally by the associ­
ation and the union.
The union shall have the right to have its representative visit the shops of the
members of the association once in every season for the purpose of examining the
union standing of the workers, but such examination shall nevertheless not involve
the loss of any work time. All such examinations shall be had on notice to the
association, which shall in each instance, designate a representative to accompany
the union representative on such examination.
The employer has the right to discharge or suspend employees for good cause.
In the interest of proper procedure, the shop chairman shall be notified of the
proposed discharge or suspension of a worker 24 hours in advance, and the union
shall be given an opportunity to discuss the proposed discharge or suspension
with the management before it occurs, and the union will give the management
a decision on the case before the 24th hour expires.


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Federal Reserve Bank of St. Louis

Industrial Relations

855

COOPERATION BETWEEN EMPLOYERS’ AND
WORKERS’ ORGANIZATIONS IN FINLAND
NEGOTIATIONS between the representatives of the Finnish Em­
ployers’ Central League and the Central Federation of Finnish TradeUnions on January 23, 1940, resulted in an agreement under which
the two organizations “recognizing the significance of free organized
activity in society,” undertake to “ discuss on confidential terms all
the problems arising in their sphere of activity with a view to their
settlement, insofar as possible, by mutual understanding.” 1
This statement was considered as signifying recognition by the
Finnish Employers’ Central League of the Central Federation of
Finnish Trade-Unions as the representative of Finnish organized
labor, thereby terminating a traditional and bitter feud between these
two organizations. Heretofore the Employers’ League has refused
to have any dealings with the Federation of Trade-Unions (insisting
on the right of employers to deal directly with their workers and the
local unions), and declined to adopt the system of collective bargaining.
The Minister of Social Affairs stated his belief that it would be “ of
great benefit not only to employers and workers but to the whole of
society. The less the Government is required to interfere in labor
relations the better it is for all parties concerned.” He expressed
the hope the cooperation would continue and that future negotiations
would be “ carried out in the same spirit of mutual confidence and
respect as the now concluded preliminary negotiations were
conducted.”
Both the managing director of the Finnish Employers’ League
(formerly Minister of Foreign Affairs) and the president of the
Central Federation of Trade-Unions expressed great satisfaction over
the conclusion of the agreement. The latter pointed out that two
important principles were covered—discussion and settlement of
“ all labor questions in the best possible understanding,” and “recog­
nition of the significance of free organized activity.”
Problems concerning labor relations are difficult. They embrace not only the
interests of the parties concerned, but the interests of society as a whole. The
significance of the agreement now concluded will be evident in the manner in
which these problems will be settled in each individual case. Such cooperation
requires on both sides the good will and confidence referred to in the announcement.

In view of the long existing tension between the organized employers
and organized labor in Finland and the fact that, unlike the other
northern countries, Finland had not solved the problem of those rela­
tions, the announcement, according to the American Minister, “ must
Report of H. F. Arthur Schoenfeld, American Minister at Helsinki.


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Federal Reserve Bank of St. Louis

856

Monthly Labor Review—April 1940

be considered especially important as marking the possible end of
the tension in question and the opening of a new era of cooperation
and peace in the labor world.”

PROGRAM OF INTERNATIONAL LABOR CONFER­
ENCE, JUNE 1940
THE Governing Body of the International Labor Organization at its
February session—the first regular meeting since the outbreak of the
war—decided that the 1940 International Labor Conference should
open in Geneva on June 5.1 In view of the world situation, it was felt
that the most useful function of the Conference would be an exchange
of views on social problems which are of particular urgency and im­
portance at the present time. It was decided therefore that, as the
agenda fixed by the Governing Body nearly a year ago, before the
present international crisis arose, could not be given the detailed
consideration necessary, the 1940 discussions should be limited, in
addition to consideration of the report of the Director and other
reports, to the question of methods of collaboration between the public
authorities and employers’ and workers’ organizations. The war has
enhanced the importance of this question, which is of interest to both
belligerent and neutral countries, European and non-European.
Among the topics suggested for consideration in this connection are
the position of employers’ and workers’ organizations in the country,
and collaboration between the public authorities and employers’
and workers’ organizations in fixing wages and other conditions of
employment. The four questions originally scheduled will remain
formally on the agenda, however, until the Conference approves the
decision of the Governing Body.
A very important function of this year’s Conference is the election
of a Governing Body. The Governing Body, which is elected by the
general Conference at 3-year intervals, is a kind of permanent execu­
tive committee, consisting of the representatives of 12 governments
and of 6 representatives each of employers and of workers.
i international Labor Office, Governing Body, Programme and date of 1940 session of International
Labor Conference (G. B. 89/4/471), Geneva, February 3, 1940, and letter from the Director of the ILO to the
Secretary of Labor, March 7, 1940.


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Employment and Labor Conditions

INTERSTATE CONFERENCE ON MIGRATORY
LABOR
USE of migratory labor should be eliminated as far as possible in
favor of local labor, and more effective methods should be adopted for
safeguarding the welfare of migratory workers and the interests of the
communities where they are employed, according to the recommenda­
tions adopted at an interstate conference on migratory labor held at
Baltimore, Md., on February 12 and 13, 1940.1
The discussions centered in child labor and education; health,
sanitation, and living conditions; relief; and recruiting practices of
employers in the hiring of migratory workers. A full and frank dis­
cussion of varying points of view was made possible by the widely
representative character of the conference, and was encouraged by the
sponsors of the conference. It was pointed out that the conference
was without authority and was designed merely to explore the nature
of the problem and the possibilities of dealing more effectively with it.
At the conclusion of the sessions, the following recommendations were
adopted :
That an up-to-date survey of the migratory labor problem, including the actual
needs for migratory labor, be made in each of the four States by the appropriate
agency, or agencies, assisted where necessary by Federal agencies;
That ways and means be devised, through cooperation with farm groups and
individual farmers, to eliminate the use of migratory labor as much as possible
by the employment of local labor;
That the same opportunities and services for education, school attendance,
health, relief, housing, and sanitation be made available for migratory labor
families as are available to the residents of the communities in which they work;
That these be the responsibility of the community and the State, with Federal
aid to assure equal opportunities and services for migrants (as well as for residents)
where State and community resources are insufficient, provided th at Federal aid
be made available on condition th at the States and communities receiving aid
agree not to discriminate between residents and migrants;
That housing and sanitary regulations be adopted, or made applicable to, the
shelter of migratory and seasonal labor, similar to those existing in the more pro­
gressive States for tourist camps; and th at adequate appropriations and personnel
be made available to the appropriate State agency to enforce these regulations;
i
Proceedings of Interstate Conference on Migratory Labor (Delaware, Maryland, N ew Jersey, and
Virginia), Baltimore, M d., February 12-13,1940. (Mimeographed.)


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Federal Reserve Bank of St. Louis

857

858

Monthly Labor Review—April 1940

That each State study the administration of existing laws as applied to migrants,
with a view to removing inconsistencies, overlapping jurisdictions, and filling in
the gaps;
That relief workers who accept temporary jobs be assured that they will imme­
diately be restored to the relief rolls when their jobs are over;
That laws regulating private employment agencies be amended so as to apply
to contractors for agricultural labor and to make the control effective;
That the State employment services develop machinery for estimating needs,
and for recruiting and routing labor.

The conference recognized that the conditions surrounding em­
ployment of children in industrialized agriculture, in which most
migratory child labor is found, are quite different from those of children
working on their parents’ farms. It therefore recommended a 14-year
minimum age for employment in industrialized forms of agriculture,
with adequate certification of age, for the protection of the employer
and the child. (This does not include the work of children for their
parents on their parents’ farms.) The conference further recom­
mended—
That State conferences on migratory labor be called by the labor commissioners
to develop means of putting agreed-upon standards into effect;
T hat the sponsors of the Interstate Conference on Migratory Labor constitute
themselves a committee, with added membership from the conference, to follow
up its recommendations and to reconvene the conference from time to time.

The conference was sponsored by John M. Pohlhaus, commissioner
of labor and statistics of Maryland; C. George Krueger, deputy labor
commissioner of New Jersey; James M. Reese, member of the Dela­
ware Labor Commission; and Thomas B. Morton, labor commissioner
of Virginia.
In addition to the sponsors of the conference, there were in attend­
ance several representatives of each of the four States of Delaware,
Maryland, New Jersey, and Virginia. Other persons attending the
conference included representatives of the American Red Cross, the
National Child Labor Committee, the National Consumers’ League,
the National Travelers’ Aid Association, the Labor Standards Division
of the U. S. Department of Labor, and a number of other Federal
agencies that contributed to the study of problems connected with
migratory labor or have been immediately concerned administratively
in the handling of such problems. Several of the persons in attendance
from the four States were not connected with the public agencies of
these States but represented private agencies such as local travelers’
aid societies, women’s clubs, farmers’ organizations, workers’ organi­
zations, councils of social agencies, and educational institutions.


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Federal Reserve Bank of St. Louis

Employment and Labor Conditions

859

NYA COLLEGE AND GRADUATE-WORK PROGRAM,
1939-40
THE National Youth Administration’s college and graduate-work
program for 1939-40 covers 18.8 percent more young people than
during the previous academic year, according to a statement by the
Federal Security Agency.1 This increased coverage, the Adminis­
trator reports, has been made possible by the larger allocation received
by the NYA under the 1939 Relief Appropriation Act.
The number of students assigned to colleges and universities was
based on 10 percent of the number of their resident undergraduate
and graduate students 16 to 24 years of age, inclusive, as enrolled
October 1, 1938. For the academic year 1939-40 the national student
quota is 104,379—an increase of 16,493 as compared with the quota of
the preceding year.
Undergraduate college students may earn a monthly sum, set by the
various college authorities, between a minimum of $10 and a maximum
of $20, whereas graduate students’ earnings may range from a mini­
mum of $20 to a maximum of $30 per month. Preliminary statistics
indicate that the average wage paid by the National Youth Adminis­
tration in November 1938 to college and graduate students was
$13.28. The undergraduates received $12.93 and the graduate
students $21.31.
For the academic year 1939-40, the aggregate allotment of college
and graduate-work funds is $14,039,268. The State allocations are
made on a monthly basis, ordinarily over a 9-month but at times over
an 8-month period. The monthly allocation to all the States, the
District of Columbia, Alaska, Hawaii, and Puerto Rico, amounts to
$1,562,007.
* * * * * * * *

UNEMPLOYMENT IN NEBRASKA, 1932-39
THE unemployed group in Lincoln, Nebr., constituted 14.3 percent
of those enumerated in 1939 as compared to 25.2 percent of those
covered in a similar canvass in 1933. However, among the unem­
ployed many were unable or unwilling to work. The jobless who
were able and willing to work in 1939 constituted only 6.0 percent of
all the persons enumerated as compared with nearly 20 percent of
those covered in the 1933 survey.
Full-time employment in 1939 was 78.5 percent; in 1933, only
slightly over 64 percent. The proportions of part-time employment
for these years were, respectively, 7.2 percent (1939) and 10.8 percent
(1933).
1 U . S. Federal Security Agency. National Youth Administration.
1940, corrected p. 1, released February 19, 1940. Washington.


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Press Release 68, February 12,

860

Monthly Labor Review—April 1940

It was not possible to conduct an employment census of the more
than 32,300 gainfully occupied persons in Lincoln, so 10 areas, which
were considered representative of the city’s population, were selected;
the same sections have been used in a series of 4 surveys, the first
being made in 1932. Employment data were secured for every person
over 16 years old, except students and women not usually gainfully
employed.
In all of the 4 years in which surveys were made, the percent
employed full time was greater for household heads than for all
persons surveyed. Among the household heads in 1939 the unem­
ployed able and willing to work made up 4.8 percent, as against 6
percent for the whole group of workers studied.
Some of the findings of these surveys, made under the auspices of the
University of Nebraska, are given in the table following.1
Employment Status of A ll Persons Enumerated in Lincoln , Nebr., by Sex, 1932—39
Number

Percent

Employment status
1939
Total, both sexes______ _____________ . . .
Employed:
F u lltim e______ ____ _______ . . .
Part time______________________ . .

1937

1933

1932

1939

1937

1933

1932

4,173

4, C09

3,684

4,026

100,0

100.0

100.0

100.0

3,278
300

3,043
401

2,358
398

2,466
491

78.5
7.2

75.9
10.0

64.1
10.8

61.3
12.2

56
127
43
40
34
595
251
324
29

60
159
48
69
65
565
253
304
8

64
171
60
67
36
928
725
193
10

91
229
57
76
38
1,069
721
348

1.3
3.0
1.0
1.0
.8
14.3
6.0
7.8
.5

1.5
4.0
1.2
1.7
1.6
14.1
6.3
7.6
.2

1.7
4.6
1.6
1.8
.9
25.2
19.8
5.2
2

2.3
5. 7
1.4
1.9
.9
26.5
17.9
8.6

Total males______________ _____ ._
3,080
Employed:
Full tim e________________________ 2, 429
Part tim e_________ ___________
188
% but less than full. _____ ____
43
Vi but less than % ___ ______
77
but less than y*_____ _ . . .
25
Less than y _________________
23
N ot reported.. _____________ _
20
Idle___ _______ _
____
463
Able and willing to work__________
179
Unable or unwilling to work____
271
No report. __ ___
. __________ _
13

2,968

2,718

3, 021

100.0

100.0

100.0

100.0

2, 256
265
40
107
31
44
43
447
179
264
4

1,699
291
52
130
39
48
22
728
550
170
8

1,800
343
68
171
35
44
25
878
563
315

78.9
6.1
1.4
2.5
.8
.7
.6
15.0
5.8
8.8
.4

76.0
8.9
1.3
3.6
1.0
1.5
1.4
15.1
6.0
8.9

59.6
11.4
2.3
5.7
1.2
1.5
.8
29.1
18.6
10.4

9

62.5
10.7
1.9
4.8
1.4
1.8
.8
26.8
20.2
6.3
3

1,093

1,041

966

1,005

100.0

100.0

100.0

100.0

849
112
13
50
18
17
14
132
72
53
7

787
136
20
52
17
25
22
118
74
40
4

659
107
12
41
21
19
14
200
175
23
2

666
148
23
58
22
32
13
191
158
33

77.7
10.2
1.2
4.6
1.6
1.5
1.3
12.1
6.6
4.8
.6

75.6
13.1
1.9
5.0
1.6
2.4
2.1
11.3
7.1
3.8
.4

68.2
11.1
1.2
4.2
2 2
1.9
1.4
20.7
18.1
2.4

66.0
15.0
2.4
5.8
2.3
3.3
1.3
19.0
15.7
3.3

% but less than full___ . . . . .
but less than % _____________
but less than H _____. . . ____
Less than _________ _______
N ot reported__________ _____
Idle_________________________________
Able and willing to work. . . . .
Unable or unwilling to work. . . . . . .
No report______ ______________

Total females____ _ _ ____________
Employed:
Full tim e... . _____ ___ _
Part time____________ __ _ . . .
% but less than full_________
but less than %
l i but less than ^ _____________
Less than ^ _____ ________
N ot reported.
_____________
Idle_____________________
Able and willing to w ork..
Unable or unwilling to work___ . . .
N ot r e p o r t e d ..._____ ______. . .

i University of Nebraska. Eight Years of Unemployment in Lincoln, Nebr., 1932-39, by Cleon Oliphant
Swayzee. Lincoln, Nebr., October 1939, pp. 1-6. (Nebraska Studies in Business, No. 45.)


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Federal Reserve Bank of St. Louis

Employment and Labor Conditions

861

AGE DISTRIBUTION OF JOB APPLICANTS IN
NEW YORK CITY
TO THROW light on the serious problems presented in recent years
by the dwindling opportunities in some occupations and industries for
employment of older workers and inexperienced young people, the
New York State Bureau of Research and Statistics undertook an
occupational analysis, by sex and age groups, of nearly 400,000
persons registered at the New York City offices of the State Employ­
ment Service as actively seeking work in December 1939.1
Registration is not obligatory for applicants who cannot benefit
under the State Unemployment Compensation Act, and therefore
jobless domestics, agricultural laborers, and self-employed persons are
without doubt underrepresented.
Proportions in Major Occupational Groups
Of the 396,632 persons registered for work with the State Employ­
ment Service in New York City, 270,758—over two-thirds—were
men, 95,909—almost one-fourth—were operatives and similar workers,
and 72,032—18 percent—were in clerical, sales, and kindred occupa­
tions, as shown in the following table:
Registrants in Active File in New York City by Sex and Major Occupational Group,
December 1939

Occupational group

Total
men and
women

Perce at aged 0 and
M en

over

Women
Total

Men

W omen

All o c c u p a tio n s .__________________________

396, 632

270, 758

125, 874

41.1

48.4

25.5

Professional and semiprofessional workers_____
______ . . . ___
Professional_________
Semiprofessional_______ _________ _______
Managers and officials______
_______ __
Clerical, sales, and kindred workers _____ . .
Clerical and k in d red ____________________
Salesmen and saleswomen____
.
_ ..
Craftsmen and foremen, exceDt farm___ _
Operatives and kindred workers1 ___. . .
Protective and personal service workers.
Protective service 2__ _________
..
Personal service__________
___________
Manual service workers______ , , _ ,
, ____
Domestic service____________________ ___
Manual service............... __
__________
Laborers____________ ______________ _______

19,134
12,169
6,965
6, 712
72, 032
51, 036
20,996
54, 539
95, 909
15, 838
6, 076
9, 762
42,571
13, 172
29, 399
50, 211
256
49,955
39,686

13,181
8, 809
4, 372
6,010
38, 580
23, 168
15, 412
53, 551
58, 623
13,103
6, 054
7, 049
22, 453
527
21,926
45, 283
255
45, 028
19,974

5, 953
3, 360
2, 593
702
33, 452
27,868
5,584
988
37, 286
2,735
22
2, 713
20, 118
12,645
7,473
4, 928
1
4,927
19, 712

37.1
40.7
30.7
58.9
25.1
19.7
38.3
61.3
45.2
67.4
85.2
56.2
47.1
45.1
47.9
47.3
50.8
47.3
7.0

40.5
43.1
35.4
61.2
35.1
28.6
44.9
61.9
51.8
71.2
85.3
59.1
49.5
54.3
49.4
50.8
51.0
50.8
7.6

29.5
34.6
22.9
39.6
13.6
12.4
19.9
29.7
34.8
48.8
63.6
48.7
44.4
44.8
43.7
15.5

Laborers except farm 1________________
Others 3___ . ___ ______ __________ ___

15.5
6.4

1 Laborers, extraction of minerals, are included in “ Operatives and kindred w orkers.”
2 For th e m ost part guards, w atch m en , and doorkeepers.
3 Includes recent college graduates, juniors w ho lack sufficient experience to be classified, persons incapable
of pursuing a gainful occupation, and persons beyond school age w ho h ave no record of gainful em ploym ent
and could not be classified.
1 N ew Y ork. D ep artm en t of Labor. B ureau of Research and Statistics, D iv isio n of P lacem en t and
U nem ploym en t Insurance. A ge, Sex, and Occupation of A pp lican ts for W ork in N ew Y ork C ity . N ew
Y ork, D ecem ber 1939.


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Federal Reserve Bank of St. Louis

862

Monthly Labor Review—A pril 1940

Age Distribution
Age 40 and over.—As reported in the above tabulation, about onefourth of the female applicants were 40 years of age or over, while
almost one-half of the men were in this age group. Men aged 40 or
more constituted 71 percent of the males in protective and personal
service, 62 percent of the male skilled craftsmen and foremen, except
farm, 61 percent of the male managers and officials, and 52 percent
of the male operatives and kindred workers.
Nearly 35 percent of the woman operatives or kindred workers
were 40 years of age and over, as were also almost 45 percent of the
woman applicants for domestic service. This substantial proportion
of older women in the latter group is considered due to the fact that
older women who need work and have had no previous or recent
remunerative employment are likely to seek employment as domes­
tics. Women 40 years old or more constituted about 12 percent of
the total woman applicants in the clerical and kindred occupation
group.
Age 50 and over.—Nearly one-third of the total applicants of both
sexes in the skilled-crafts group were 50 years of age and over.
In this older group also were slightly over one-fifth of operatives
and kindred workers, and 62 percent of the protective-service workers,
although the total number of persons over 50 in the latter occupational
class numbered only 3,775.
Under 25 years.—Applicants under 25 years of age numbered 83,083,
and constituted 21 percent of the active file. Approximately twofifths of these young people were in the unclassified group, as they did
not have the experience requisite for occupational classification.
However, of the total group of clerical job seekers in the active file
the applicants under 25 constituted 27 percent. Young applicants
also made up 13 percent of the total operatives and kindred workers,
15 percent of the laborers, and 17 percent of the salesmen and
saleswomen.
Only 5 percent of the craftsman group were under 25 years of age.

“While the number of young persons within the skilled trades might
be expected to be relatively low because of apprentice or other train­
ing requirements, this small percentage may be evidence in support
of the contention frequently expressed that few young people are
able to enter the skilled trades.”
The inventory also discloses the significant fact that relatively
few young people are applying for domestic-service jobs. Of the
total registrants for this service, less than 11 percent were under 25
years of age.


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Federal Reserve Bank of St. Louis

Employment and Labor Conditions

863

CHANGES IN WORKING CONDITIONS OF BRITISH
LABOR IN 1939 1
EMPLOYMENT in Great Britain was greater at the end of 1939 than
at the beginning of the year. Wages increased in the same period, a
substantial number of workers had their normal weekly hours reduced,
and strike activity was greater than in 1938.
Employment and Unemployment
After the usual seasonal increase in unemployment during January
1939, unemployment decreased each month through August. In
the later months of this period employment was the highest ever
recorded. Some dislocation resulted following the outbreak of war in
September, and registration of the unemployed increased in both
September and October but decreased in November and December.
The number of unemployed registered on December 11 was 130,000
higher than on August 14, but 470,000 lower than on December 12,
1938. The number of registered unemployed in Great Britain,
December 1938 to December 1939, were as follows:
1938

December
1939

January.
February.
March
April
M ay..

Number of
unemployed

Number of
unemployed

1939

__ 1, 831, 372 June _
Ju ly ..
August
2, 039, 026
September
__ 1, 896, 718 October.
._ 1, 726, 929 November
_. 1, 644, 394
December
_. 1, 492, 282

____
____
____
____
____
____
____

1, 349, 579
1, 256, 424
1, 231, 692
1,330,928
1, 430, 638
1,402,588
1, 361, 525

The number of insured persons, aged 16 to 64, in employment in
Great Britain, is shown by months below. Workers insured under the
agricultural scheme and certain domestic employees are included in
the totals.
Number

1938

December 12.

___

12, 273, 000

1939

January 16
February 13
March 13 __ .
April 17__________
May 15
June 12
July 10
August 14

___ 12, 088, 000
___ 12, 231, 000
___ 12, 414, 000
___ 12, 529, 000
___ 12, 690, 000
___ 12, 838, 000
___ 12, 948, 000
___ 1 12, 944, 000

1 Approximate. Excludes about 50,000 militiamen and reservists who had been called up for military
1 Great Britain. M inistry of Labor Gazette, London, January 1940.
217593— 40------ 0


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Federal Reserve Bank of St. Louis

864

Monthly Labor Review—Aprilll940

Beginning in February 1939, the monthly increase in number em­
ployed was larger than in the corresponding months of 1938. The
average employment in 1938 was 11,410,000, as compared with
11,769,000 for the first 8 months of 1939. Nearly all of the principal
industries and services shared in the improved employment situation,
but the most marked rise was in pursuits affected by the defense pro­
gram. The decline in employment later in the year was chiefly in the
industries where a seasonal decline is usually experienced but extended
to a number of service trades and consumption-goods industries.
Wages and Hours
Wage rates in Great Britain changed little until after the outbreak
of war. In November and December increases were granted in many
industries to compensate for the rise in the cost of living.
It is estimated that in industries for which statistics are collected
the changes resulted in an aggregate net increase of £900,000 2 in
weekly full-time rates of wages for nearly 5,500,000 workers. Wage
decreases aggregated £10,000 in weekly full-time rates of wages, and
affected about 68,000 persons. These figures are exclusive of changes
in rates of wages in agriculture and certain other employments. In
all industries (including agriculture) for which information is available,
the average level of weekly full-time rates of pay at the end of 1939
was estimated to be 4 to 4}{ percent higher than at the end of 1938.
The total of 5,481,900 employees who received wage increases in
1939 was over twice the total of 2,381,500 in 1938. The 1939
figure was, however, only slightly higher than that, for 1937 (5,161,200).
The estimated net weekly amount of change in rates of wages was
£910,000 in 1939, £262,100 in 1938, and £788,250 in 1937.
Preliminary estimates indicate that the chief beneficiaries of wage
increases were the coal-mine workers (783,000), employees engaged
in the engineering trades (735,250), textile industries (787,350), and
building, public works contracting, etc. (938,800).
Reductions in normal weekly hours of work averaged 3% hours and
affected 380,000 persons in 1939. Juvenile workers under 16 years
of age, in the great majority of industries, made up the largest group in
this total, as their hours were reduced to 44 per week effective July 1,
1939, under one of the provisions of the Factories Act of 1937.
During 1938, reductions in hours involved 166,650 workers, and for
1937 the total was 390,650—only slightly higher than in 1939.
Cost of Living
The official index number of cost of living for Great Britain, using
the month of July 1914 as the base or 100, changed comparatively
little during the first 8 months of 1939. It ranged from 53 to 56.
s Average exchange rate of pound sterling in 1939=$4.435.


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Employment and Labor Conditions

865

After war was declared it rose sharply and was 65 on September 30,
69 on November 1, and 73 on December 1. The index of 74 on Janu­
ary 1 , 1940, was the highest for any date since January 1927. Of the
items entering into the cost of living, the rise in food prices was the
largest. From a low of 34 on June 1 , 1939, the index increased to 57
on January 1, 1940.
Strikes

Altogether 930 industrial disputes involving stoppages of work were
begun in 1939 in Great Britain and Northern Ireland, as compared
with 875 in the previous year. The numbers of persons involved were
337,000 and 275,000, respectively, and the working days lost 1,344,000
and 1,334,000. Disputes were approximately evenly proportioned as
between the 8 pre-war and the 4 wartime months.
The record with respect to stoppages was more favorable in 1939
than in 1937.
Only 4 of the stoppages occurring in 1939 involved 5,000 or more
workers, of which 2 were in the coal-mining industry, one affected
tinplate workers, and the other affected building-trades operatives.

DECREASE IN LONG-TERM UNEMPLOYMENT IN
GREAT BRITAIN
THE number of registered unemployed men in Great Britain who had
been out of work for 1 year and over decreased 38.7 percent between
August 14, 1939, and January 1, 1940, from a total of 223,098 to
136,669. Workers in all parts of the country benefited from the
reduction in unemployment, and even the number of those who had
been out of work for 5 years and over declined 26 percent. There
was only a slight decrease—2.8 percent—in the number of unemployed
women, this number being in excess of 20,000 on both dates. These
statistics were compiled from a special count of claimants for benefit
or allowances on the register of the employment exchanges.1
Changes in the numbers of workers who had been on the register
for more than 1 year on the two dates are shown in table 1, by sex
and duration of unemployment. The men who had been out of
work for the shortest period—1 and under 2 years—decreased by
47.6 percent between August and January, followed by the 4- and
under 5-year group with a decrease of 41.0 percent. However, the
percentage decrease of 39.2 in the 2- and under 3-year group was only
slightly less. For women the sliortest-term unemployed also decreased
1 Great Britain. House of Commons.
25, 1940 (pp. 745-748).


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Federal Reserve Bank of St. Louis

Official Report, Parliamentary Debates, vol. 356, No. 15, January

Monthly Lahor Review—A pril 1940

866

the most, by 8.3 percent. An increase in number unemployed oc­
curred in two cases, amounting to 0.8 percent for those out of work 3
and under 4 years, and to 17.3 percent for those who were unemployed
5 years and over.
T a b l e 1 .—Number

Unemployed in Great Britain, by Duration of Unemployment and
by Sex, August 14, 1939, and January 1, 1940
Percent of change

Number unemployed
Women

Men

Duration of unemployment

Men
Aug. 14,
1939

Women

Jan. 1,
1940

Aug. 14,
1939

Jan. 1,
1940

T o ta l________________________________

223,098

136,669

20,902

20,317

-3 8 .7

- 2 .8

1 and under 2 years------ _ . . _
---2 and under 3 years. . _ _ --------------- -3 and under 4 years. ------- . . -----4 and under 5 years---- -- . . . . ----------5 years and over------- ------ - -- ---- - --

77,147
43,054
36,685
16, 980
49,232

40, 405
26,187
23, 613
10,024
36,440

9, 769
4, 726
2,462
1,306
2,639

8,956
4,485
2,482
1,298
3,096

-4 7 .6
-3 9 .2
-3 5 .6
-4 1 .0
-2 6 .0

- 8 .3
- 5 .1
+ .8
—. 6
+17.3

Of the 136,669 men unemployed on January 1, over half were
general laborers ordinarily in heavy and light industries, mine laborers,
and other mine workers.
The number of men unemployed 1 year and over is shown by age
groups in table 2. This comparison is based on the age distribution
as of May 1, 1939, and January 1, 1940. The text accompanying
the statistics published in the Parliamentary Debates, from which the
figures are taken, states: “It is natural that the greatest percentage
decreases should have occurred among the younger men, but the
numbers aged 55 to 64 show a fall of about 25 percent. Over twothirds of the decrease in the total since May 1 has occurred among
men aged 35 and over.”
T able 2.—Number of Men Unemployed l Year and Over, Classified by Age, M ay 1,1939,
and January 1, 1940
Number unemployed
for 1 year or over
Age group

All age groups______________
18 to
21 to
25 to
35 to
45 to
55 to


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Federal Reserve Bank of St. Louis

20 years
. —- - —
24 years____
______
34 years _____ _____
44 years. . .
----------54 years --------- -- --------64 years_____ __________

Percent of
decrease

M ay 1,
1939

Jan. 1,
1940

252,200

136, 669

45.8

2,604
11,055
41,659
52,138
59,753
84,991

831
3,004
13,839
21, 668
33,149
64,178

68.1
72.8
66.8
58.4
44.5
24.5

Social Security

RECENT DEVELOPMENTS IN THE FAMILY-ALLOW­
ANCE MOVEMENT 1
AMONG the latest schemes for family allowances are those reported
for Brazil, Great Britain, and Japan. In two of these countries,
Brazil and Japan, these programs are the result of legislative action
by their respective Governments. The two British plans here de­
scribed have been instituted by private employers.
Brazil
Provision for the preparation of a family-allowance scheme is in­
cluded in the Brazilian decree signed November 10, 1939, providing
for a national commission for family protection, the work of which is
to last one year. This body is charged with the duty of drafting
legislation which will aim to further the following objectives, among
which, it will be noted, is the establishment of a family bonus.
I. To facilitate marriage, (a) By restricting impediments; (b) By recognition
of religious marriage; (c) by rendering the act of the civil marriage free of charge;
(d) by granting a loan for marriage.
II. To establish a bonus for the family.
III. To encourage the idea of family property.
IV. To facilitate the acquisition of a home.
V. To aid maternity, infancy and adolescence.
VI. To give protection to illegitimate children.
VII. To assure parents, without detriment to general conditions, preference in
obtaining public and private employment.
VIII. To establish special benefits in favor of large families.
IX. To aid poor families to earn their own living and educate their children.
X. To define crimes against the family and the laws regarding same, and to
regulate lawsuits and judgment of same.
XI. To regulate sources of revenue, especially the tax on bachelors and child­
less couples, so as to furnish the State with the means for meeting expenses for
the protection of the family.
XII. To adopt other measures which are meant to assure, in any other way,
the protection of the family.
» Data are from International Labor Office, Industrial and Labor Information (Geneva), February 5,
1940; Report from Jefferson Caffery, American Ambassador Extraordinary and Plenipotentiary to Brazil,
Rio de Janeiro, November 17, 1939; U. S. Bureau of Foreign and Domestic Commerce, Commerce Reports
(Washington), March 2,1940; Central-Blatt and Social Justice (St. Louis, M o.), March 1940.


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Federal Reserve Bank of St. Louis

867

Monthly Labor Review—A pril 1940

868

Although the Commission will function under the Minister of
Justice and Interior, its members will include representatives of the
Ministries of Education and Public Health, of Finance, and of Labor,
Industry, and Commerce.
Great Britain
Because of the rising cost of living, the Ford Motor Co. in Great
Britain has increased the wages of its employees substantially.
Beginning January 1, 1940, the company granted a special “wartime
family allowance” of 2s. per week for each dependent child in excess
of two. Children who have attained the school-leaving age are not
to be considered dependents.
A family-allowance scheme has been adopted by the Tempered
Spring Co. of Sheffield, England, according to a recent report by one
of the directors. The benefits are applicable to all employees over 18
years of age who have been with the company for at least half a year,
and who have two or more children under 15 years of age attending
school. The allowances are independent of wage rates and salaries,
and amount to 3s. per week for the first two children, and for each
additional child 2s. 6d. In the worker’s absence as a result of illness
or holiday, the allowances will be paid up to a maximum of 4 weeks
from the time he leaves his employment.
Japan
The Japanese Cabinet, on February 16, 1940, approved a familyallowance system for low-paid workers, to help them to cope with the
increasing cost of living. It is reported that the scheme will become
effective immediately. Under this plan a monthly grant of 2 yen for
each dependent under 14 years of age will be payable to all wage
earners receiving less than 70 yen a month.

AMENDMENT OF NEW ZEALAND SOCIAL
INSURANCE ACT
THE general social-insurance law passed in New Zealand, September
14, 1938,1 became effective for the payment of cash benefits and
contributions April 1, 1939. The law provided that on the same date
the medical and hospital benefits, and other related benefits adminis­
tered by the Minister of Health, should be available to persons en­
titled to them, but that if for any reason they could not be put in
effect at that time, they should be made available as soon as possible
thereafter. The operation of the insurance medical service was
delayed by the refusal of the medical profession to undertake
insurance practice on the terms and conditions offered by the Govern1 See M onthly Labor Keview, February 1939/(p. 322).


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Federal Reserve Bank of St. Louis

Social Security

869

ment. The act was amended September 29, 1939,2 to meet certain
financial and administrative difficulties which had arisen in its opera­
tion, and to incorporate in the law the terms on which agreement had
been reached between the Government and the medical profession
with regard to maternity benefits. Under this agreement the system
of individual contracts and of payment at a flat rate was replaced by
a system of payment for services rendered, according to a scale of fees
agreed to by the profession.
Cash Benefits
With respect to old-age pensions, the original law provided that in
case of any person aged 60 years or over, who was the parent of a
dependent child or children under the age of 16, the pension might be
increased by any amount up to £13 a year in respect of each child.
Under the amended law a child maintained by the pensioner may also
be considered to be a dependent child for the purpose of granting the
allowance.
Widows’ pensions under the statute were reduced £ l for every
complete £ l of income above the basic rates fixed for widows with and
without children. The amended law provides that in the case of a
widow who has attained the age of 60 the pension shall also be
reduced by £ l for every £10 of property, as in the case of old-age
pensions.
Maternity Benefits
The amended law extends the maternity benefits to include medical
benefits, except in special cases, to a period of 14 days in case of a mis­
carriage if the woman has received prenatal advice or treatment from
a medical practitioner or midwife.
Maternity medical services were originally to be based on individual
contracts with practitioners containing the terms and conditions fixed
by the Minister, but according to the amendment, medical practi­
tioners rendering obstetrical services will be paid according to a scale
of fees agreed upon by the Minister and the New Zealand branch of
the British Medical Association. In case no agreement is reached,
the scale is fixed by a special board appointed by the Minister, con­
sisting of a justice of the Supreme Court (serving as president), a
representative of the Medical Association, and a representative of the
Ministry of Health. A scale is also fixed for mileage fees.
Payment from the social-security fund according to the scale must
be accepted by the practitioner in full settlement of his claims, unless
he is one of the recognized obstetric specialists, accepted by the
Minister as such, in which case he may charge a fee to the patient or
other person liable, in addition to the fees payable out of the social2 International Labor Office, Industrial and Labor Information (Geneva), February 19, 1940.


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Federal Reserve Bank of St. Louis

870

Monthly Labor Review—A pril 1940

security fund. A doctor may charge a patient for services for which
no rate is fixed, but not otherwise, unless the woman notifies the doctor
that she does not wish to receive treatment under the maternitybenefit provisions.
Any practitioner who does not want to undertake maternity service
on the terms laid down by the Social Security Act may notify the
Minister, who publishes a list of such practitioners. The law provided
that medical practitioners who had signed a contract prior to the
amendment may elect to continue giving services on the old terms or
to practice under the new terms without individual contract.
The scale of fees which were accepted and became effective October
1, 1939, are £5 5s. for usual maternity services, £3 for miscarriage,
additional fees ranging from 10s. to £5 for special complications, and
mileage fees to cover all visits.
Financial Provisions
Formerly, income derived from another country within the British
Dominions was exempted from the social-security contribution if a
special tax in respect to unemployment or social services was payable
on it in the other country. This clause was repealed, and income
derived elsewhere under these conditions is not exempted after April 1,
1939.
The Finance Act of August 25, 1939, provided that no ticket may
be issued to any person leaving New Zealand unless he has a certificate
showing that he either is not liable to pay insurance contributions or
penalties or has made satisfactory arrangements for their payment.
The same act authorized the Minister of Finance to transfer the excess
of revenue over expenditure for the year ending March 31, 1939,
amounting to £809,000, from the consolidated fund to the socialsecurity fund.
The social-security contribution for members of the armed forces
called up for service in connection with the war emergency will be
paid by the Government in respect of the whole income received as
military pay, including wives’ and children’s allowances.

PLACEMENT WORK OF PUBLIC EMPLOYMENT SERV­
ICES, FEBRUARY 1940 AND YEAR 1939 1
Activities in February 1940
PUBLIC employment offices throughout the country made 202,900
job placements during February, one-eighth more than during the corre­
sponding period a year ago. Private placements in February were
the highest on record for any February during the 7 years of opera1 Prepared by Research and Statistics Division, Bureau of Employment Security, Social Security
Board.


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Federal Reserve Bank of St. Louis

Social Security

871

tion of the Nation-wide employment-office system. Placements
declined 8 percent from the volume reported in January, reflecting
the smaller number of working days. The number of job seekers
registered at public employment offices at the end of February was
2.4 percent lower than at the end of January.
Private jobs filled during February numbered 184,137, or 44 per­
cent above the level of the year before and over twice the volume of
February 1938. The improvement was general, as only 7 States failed
to show improvement over 1939. The largest increases occurred in
Arizona, Georgia, Hawaii, Kansas, Mississippi, Missouri, New Jersey,
South Carolina, and Washington, in all of which placements were
more than double the number of private jobs filled in February 1939.
Gains were most pronounced in jobs of regular duration, those ex­
pected to last 1 month or more, which accounted for more than onehalf of all private placements. Placements in jobs with governmental
units or on public work declined to 18,763.
In addition to complete placements, nearly 25,000 supplemental
placements were reported. These represent instances in which the
employment offices did not complete all steps in the placement process,
but were of material assistance in bringing worker and job together.
Over one and a quarter million applications for work were received
during the month, a volume nearly one-fourth larger than that of
February 1939. The active file, however, declined to 5,919,017. This
is a decline of 16.9 percent from the number of registered job seekers
reported in February 1939, and represents the first decline reported
since last September.
T a b l e 1 .— Summary

of Placement Activities,1 February 1940
Percent of change from—

Activity

Total complete placements.
Private__________ ______
Regular_________ _
T em porary.._______ .
Public_______
Supplemental placements___
Total applications______
Active file. _ . . . . .

Number

202,900
184,137
96,433
87, 704
18, 763
24, 752
1, 292,646
5,919,017

January
1940

February
1939 2

- 8 .0

+12.0

- 5 .2
- 7 .1
-2 2 .7
-2 7 .4
-1 8 .7
- 2 .4

February
1938

+10L 3
+120. 5
Ou.

-1 9 .7
+23.3

O

(3)
+11.0

1 Excludes Alaska.
2 Excludes Florida; State employment service not in complete operation during February 1939
2 Data not reported in 1938.

Placements of war veterans by public employment offices during
February numbered 6,727, of which over 5,300 were in private jobs.
Placements of veterans in private jobs of regular duration were over
40 percent higher than in February 1939. At the end of the month,
slightly in excess of a quarter of a million war veterans were registered
as seeking employment.

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Federal Reserve Bank of St. Louis

Monthly Labor Review—A pril 1940

872

T able 2.— Summary of Placement Activities for Veteransf February 1940
Percent of change from—
A ctivity

Number
January
1940

Total complete placements_____- _______________ ___
Private_____________ __ ______ . . . _________
R egular... . . .
... .
. . _________ __
Temporary_____ _________________________
Public_____ ____________ ______ _ ____________
Total applications... _____ _____ . . .
________ ____
Active file___ . . _ ________________________ . . .

6, 727
5,324
2,135
3,189
1,403
47,674
254,403

-1 7 .1
-5 .5
- 3 .7
-6 .6
-4 3 .5
-2 0 .3
-2 .2

February
1939 2

February
1938

-1 7 .8
+25.7
+40.3
+17.6
-6 4 .4
+ 9 .8
-2 7 .3

+ 0 .3
+62.2
+66.5
+59. 5
-5 9 .0
- 2 .6
-2 6 .7

1 Excludes Alaska.
2 Excludes Florida; State employment service not in complete operation during February 1939.

T able 3.— Total Placement Activities, by Regions and States, February 1940
[Preliminary data reported by State agencies, corrected to March 13, 19401
Complete placements

Applications received

Private

Region and State

SupplemenPer­
Per­
tary
cent of cent of Regu­ Pub­ place­
Total
change
lic ments
N um ­ change
lar
from from (over
ber
1
Janu­ Feb­ month)
ary ruary
1940
1939

Total i _________ 202,900 184,137

- 6 .1 2+ 4 4 .1

Region I:
Connecticut. _ 3, 865 3,171 - 8 .5 +47.8
M aine______
1,260 1,157 - 1 .8 +45.4
M a ssa ch u ­
setts______
2,955 2,758 -1 4 .8 +73.0
N ew Hamp­
shire. ___ 1,571 1,344 - 9 .3 + 2 .6
Rhode Island.
529
509 -1 9 .6 - 7 .6
Vermont____
629
587 + 3 .5 +25.4
Region II: New
York_____. . .
18, 648 17, 701 - 2 .9 +65.2
Region III:
Delaware___
661
648 -1 8 .9 +40.6
New Jersey... 9,027 8,629 +11.5 +180.4
Pennsylvania. 8,931 8,412 - 3 .2 +55.1
Region IV:
District
of
C olum bia.. 2,526 2,441 -2 1 .5 + 9 .4
M aryland___ 2, 378 2,234 -1 2 .7 +43.3
North Caro­
lin a. ___ _ 5,084 4, 217 + 1.9 +25.2
Virginia_____ 3,312 2,783 -1 4 .2 +60. 1
West Virginia
2,036 1,918 + 1.9 + 1 .5
Region V:
K entucky___
1,573 1,416 - 2 . 7 +81.8
Michigan___
7,034 6, 668 - 4 .4 +65.7
Ohio. ____
9,475 9, 302 - 7 .6 +96.2
Region VI:
Illinois . .
10,190 10, 051 -1 3 .2 +16.0
Indiana
5,606 5, 568 - 3 . 2 +20.8
Wisconsin___ 4,345 3,925 - 4 .5 +28. 5
Region VII:
Alabama.
. 2,867 2,698 - 2 . 9 - 2 . 5
Florida_____
2,817 2,333 -3 0 .0
(2)
Georgia_____
6,106 5,467 +10.9 +174. 3
M ississippi.
2,328 1, 773 +20.0 +288. 0
South Caro­
lina__ ____
2,819 1,780 +27.0 +122. 2
Tennessee___ 3,219 3,010 - 2 .3 +27.5
1 Excludes Alaska.
2 Excludes Florida; State employment service not
3 Increase of less than a tenth of 1 percent.


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Federal Reserve Bank of St. Louis

N um ­
ber

Per­
cent of
change
from
Janu­
ary
1940

Per­ Active
cent of filé as of
change Feb. 29
from
1940
Feb­
ruary
1939

96,433 18,763 24, 752 1, 292, 646 -1 8 .7 2+ 23.3 5,919,017
1,937
924

494
103

139
8

18, 275 -3 0 .5 +36.4
8, 686 -2 1 .7 + 5.8

81,566
34,767

1,969

197

63

36,469 -1 8 .4 +90.8

172,275

963
324
248

227
20
42

284
44
17

5,314 -3 0 .3 + 3.5
5,905 -4 5 .2 -2 7 .9
2,637 -3 1 .5 +29.2

18,929
46,423
18,778

8, 549

947

741

148, 659 -2 8 .3 +35.5

615,310

288
4, 263
5,414

13
398
519

27
793
1, 536

3,799 -3 5 .3 +31.5
49, 678 -2 7 .0 - 8 .3
103,037 -2 1 .6 + 3 .2

15,785
292,073
421,567

1,108
1,177

85
144

10
30

10, 214 -2 6 .5 +35.6
19, 378 -4 0 .3 +12.4

39,487
74,689

2,222
1,669
1,104

867
529
118

20
63
281

28,764 - 6 .3 +19.5
22,076 -1 5 .3 +12.2
20,907 -1 5 .8 +33.2

104,914
59,881
77, 385

860
4,423
5,137

157
366
173

113
105
317

20,883 - 3 .7
70, 559 -1 0 .3
77,891 - 8 .6

+18.0
+34.1
+40.4

88,533
215,149
286,028

5, 387
3,278
2,446

139
38
420

467
815
445

57, 716 (3) +128. 9
37,886 -1 4 .6 +51.7
32, 712 - 4 .6 +38.8

179,470
178,934
159, 899

1,816
1,608
2, 673
1,197

169
484
639
555

184
2
121
227

21,910 - 7 .6 +57.6
15, 283 - 3 . 6
(2)
23, 486 + 6 .7 - 5 . 2
14, 320 -2 3 .0
+ .8

139, 850
64, 734
182, 562
63,459

1,108 1,039
1,996
209

12
429

9, 805 + 3.1
12, 5221 - 8 .7

71, 043
142,056

+ 6 .8
+ .3

in complete operation during February 1939.

Social Security

873

T able 3.— Total Placement Activities, by Regions and States, February 1940— C on tin u ed
Complete placements

Applications received

Private

Region and State

Region VIII:
Iowa___ _ . _
Minnesota__
Nebraska___
North Dakota
South Dakota
Region IX:
Arkansas____
K ansas.,
Missouri . . .
Oklahoma___
Region X:
Louisiana___
N ew M exico..
Texas ____
Region XI:
Arizona_____
Colorado. _.
Idaho_____
Montana____
Utah ______
Wyoming.
Region XII:
California___
N evada_____
Oregon_____
W ashington..
Territories:
A laska4.. . . .
Hawaii_____

Sup­
plemenPer­
Per­
tary
Pub­
cent of cent of Regu­
place­
Total
lic ments
change
N um ­ change
lar
from
from
ber
(over 1
Janu­ Feb­ month)
ary ruary
1940
1939

N um ­
ber

Percent of
change
from
Janu­
ary
1940

Active
Per- file as of
cent of Feb. 29,
change 1940
from
Feb­
ruary
1939

4, 532
3,122
1,307
829
578

3, 595 -1 2 .0 + 0 .4
2,912 - 4 . 9 +20.1
1,056 - 6 .3 +22.2
805 -1 5 .0 - 1 .7
536 -2 1 .6 -2 3 .0

1,442
1,715
546
415
228

937
210
251
24
42

425
150
17
28
16

15,899
22,861
8,136
4, 564
4,330

-3 3 .9 +12.4
-2 9 .8 +39.0
-1 7 .6 + 7 .7
-3 2 .3
- 7 .5
-1 3 .0 +28.4

99, 970
149, 376
43, 911
29, 604
31,644

1, 775
2,267
5, 084
2,933

1,536 -2 2 .4 - 2 .9
2,015 - 7 .6 +111.4
4,889 - 5 .4 +105. 2
2, 508 + 2 .3 +93.5

957
776
2,878
917

239
252
195
425

245
167
20
125

12, 985 + 2.1 +55.3
28, 230 +36.6 +87.0
48, 148 —14. 5 +75.1
23,157 -1 0 .1 + 9 .9

57, 447
60,008
190, 643
90, 750

2,127
329
59
434
514
147
6, 375 2,423 13,119

19, 914 -20. 5 + 5.6
3, 972 -2 4 .3 +22.7
48, 248 -1 8 .4 - 1 .9

97,080
35,139
268, 992

1,196
829
603
279
135
99

3, 681 3, 352
- . 7 -1 1 .8
840
693 -1 9 .6 +69.4
24, 448 22,025 - 6 .0 +24.5
2,298
2,086
1,110
641
499
306

1,870
1,814
1,095
514
390
225

-3 3 . 2 +134.3
-1 1 .6 +66.6
+23.6 +72.2
+13.5 +40.1
-5 7 .8 -1 4 .1
+ .9
+ .4

14, 624 12, 945 - 4 .5
702
606 -2 0 .1
2, 657 2,196 -3 0 .6
4,360 3,687 +5.1
630

+13.8
+36.8
+38.8
+270. 6

373 -3 4 .4 +147. 0

428
272
15
127
109
81

898
80
48
131
39
0

7, 385
14, 604
5,231
4, 580
8, 958
2,888

-2 2 .1
-2 2 .0
-2 7 .6
-2 8 .2
-1 9 .6
-2 6 .4

+35.9
-1 7 .1
+18.8
+45. 0
+16.5
- 1 .7

25, 422
66,645
16, 007
31,129
26, 067
11, 376

6,524 1,679
317
96
1,154
461
2,207
673

688
57
469
130

94, 763
2,250
12,836
18, 714

-2 7 .7 - 3 .6
-3 0 .8 +25.9
-3 6 .1 +22.0
-1 8 .1 +49.9

549, 095
6,638
50,685
125, 516

192

34

257

1,222 -3 9 .1

+ .8

10, 327

4 Data not reported.

T able 4.—Placement Activities for Veterans, by Regions and States, February 1940
[Preliminary data reported by State agencies, corrected to March 13, 1940]
Complete placements

Applications received

Private
Region and State

T o ta l3__________________
Region I:
Connecticut__________
M aine__
. . . __ _
M assachusetts... . . _.
N ew Hampshire______
Rhode Island___ ____
Vermont.
Region II: New York____
Region III:

Per­
Per­ Active
file
cent of cent of as
Per­
Per­
of
change
change
cent
of
cent
of
Pub­
N
um
­
Feb.
Total
from
from 29,1940
change Regular lic
ber
N um ­ change
Janu­
Febru­
from
from (over 1
ber
ary
ary
Janu­ Febru­ month)
1940 i
1939 i
ary
ary
1940 i
1939 1
6, 727 5, 324
225
31
63
66
13
14
414

123
29
51
60
12
13
363

- 5 .5 3+25. 7
+19.4
-4 1 .4
- 7 .7

+35.2
+15.4

+17.9 +125. 5

2,135 1,403 47, 674
99
17
28
40
11
5
89

102
2
12
6
1
1
51

726
3Q7

1, 075
244
1.36
84
2,793

-2 0 .3

3+ 9 .8 254,403

-3 5 .0
26 3
—21. 3
-2 9 .1
—54 1
—27 0
-3 3 .9

-f43 9 6' 398
-2 .8
’867
45 4 1 090
-f9 1
’ 860
+82.5 17, 638

+21.6

3,907

6
o
159
44 0 4-59 0
+25.4 +127.0
39
17 1,643
- 6 .1 +57.7 8,611
+18.1 +207.1
123
17 3,908 -1 8 .2
- 1 .6 16,629
i Where less than 50 veteran placements or applications were involved in either period, the percent of
change was not computed.
3 Excludes Alaska.
3 Excludes Florida: State employment service not in complete operation during February 1939.
New Jersey__________
Pennsylvania________


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Federal Reserve Bank of St. Louis

15
160
232

15
143
215

874

Monthly Labor Review—A pril 1940
T able 4.—Placement Activities for Veterans, by Regions and States,
February 1940— C on tin u ed
Applications received

Complete placements
Private

Region and State

Region IV :
District of Columbia
North Carolina Virginia_________
Region V:
Michigan___
—
---------O hio..- .Region VI:
Illinois________ _____
Indiana ..........
Wisconsin____________
Region VII:
Alabama__________ .
Florida. ____ ____
Georgia_______ _____
Tennessee____
Region VIII:
Iowa . - .
-------M innesota______ _ . . .

Per­ Active
Per­
file
cent of cent of as of
Per­
Per­
change Feb.
Pub­ N um ­ change
cent of cent of
from 29,1940
from
Total
ber
change Regular lic
Janu­ Febru­
N um ­ change
from (over 1
from
ary
ary
ber
Janu­ Febru­ month)
1939
1940
ary
ary
1939
1940

-1 8 .5
+22.2

16
35
32
32
23

19
9
43
39
8

425
718
636
517
898

-3 7 . S
-4 8 .2
-1 3 .9
- 9 .8
- 9 .9

+11.5
-1 8 .5
-2 1 .7
-2 4 .0
+53. 5

28
256
259

- 2 .7 +100. 0
-1 5 .9 +90.4

14
151
130

16
25
13

824
3,327
3, 397

- 3 .4
-1 6 .4
-1 1 .8

+ 6.3 3, 650
- . 5 11,082
+68.0 13,133

271
99
122

223
98
92

-2 0 .4
-1 8 .3
+19.5

- 5 .5
-1 3 .3
+35.3

82
67
71

48
1
30

1, 641
1,297
1,578

-1 5 .8
-2 4 .6
-1 3 .2

+81.5
+36.1
+29.5

4,920
9,675
9,122

127
78
169
32
63
82

120
65
144
22
37
69

+44.6 +12.1
-j-18.2
(3)
+ 8 .3 +105. 7
+15.0

+ 6 .2

53
43
51
12
21
23

7
13
25
10
26
13

678
624
562
376
328
337

-1 1 .6
- 4 .3
+ 6 .4
-1 4 . 5
+32.8
-1 9 .2

+ 3.2
(3)
-2 2 .9
+12.9
-1 2 .8
-3 8 .4

4,951
2,935
5, 495
!, 555
2,453
6,116

313
164
49
18
14

209
113
29
15
12

-3 1 .0
+20.2

-2 0 .8
+59.2

42
46
10
9
4

104
51
20
3
2

695
978
425
135
171

-4 4 .7
-3 2 .7
- 3 .6
-3 9 .2
- 4 .5

+ 6.9 5, 600
+38.9 10, 213
+24. 6 2, 052
-1 7 .2 1,357
-3 1 .9 1,803

45
83
156
142

35
59
150
100

-3 7 .2
-2 7 .2 +158. 6
-2 0 .6 +66.7

11
8
66
13

10
24
6
42

655
1,630
2,381
1,136

+14.1
+68. 6
-2 0 .6
- 7 .2

+53.8
+65. 7
+92.9
-3 5 .7

2,749
3, 515
9,527
5,997

59
18
806

49
15
708

+6.1

31
4
97

1C
3
98

520
190
1,307

-2 5 .0
-4 4 .1
-2 3 .7

-3 8 .9
+15.9
-2 0 .6

2,929
1,808
8, 754

80
165
72
38
16
15

70
44
67
25
7
6

-4 2 .6

55
19
14
14
3
4

1C
121
5
13
9
9

377
694
268
260
425
162

-2 1 .8
-1 9 .4
-3 0 .6
-3 1 .8
-2 3 .4
-3 0 .5

+32.3
-3 4 .0
-1 7 .5
+ 9.7
-1 7 .6
-1 9 .4

1,357
3, 588
619
1,756
1,428
648

747
59
158
178

545
57
114
134

- 2 .7
+14.0
-2 0 .3
- 1 .5

209
22
46
9C

202
2
44

44

4,538
128
580
668

-2 7 .2
-3 0 .8
-4 6 .9
-2 4 .3

-1 6 .3 30,952
414
+ 5.8
- 6 .9 2, 752
+18.9 6,825

26

9

5

17

23

73
91
118
105
46

54
82
75
66
38

44
281
272

Region IX:
Missouri_____________
Oklahoma. ________
Region X:
Texas. __ - . ---- -- . . .
Region XI:

Region XII:
California______ .
Oregon..

_______ .

-2 1 .7
+ 3 .8
-2 .6
+13.8

+ 6.9

0

- 5 .6

-1 8 .4
+48.1

2, 224
3,318
2,483
1, 574
3,999

Territories:
379

3 Excludes Florida; State employment service not in complete operation during February 1939.
< Data not reported.

Summary of 1939 Operations
Tlie extent to which the Public Employment Service has assisted
workers in finding jobs is evidenced by the fact that nearly 3,500,000
jobs in 1939, an increase of 28.7 percent over 1938, were filled through
local employment offices. Although public placements continued to
decrease with the slackening of public construction projects, 2,700,000
private placements were made during the year, establishing a new

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Federal Reserve Bank of St. Louis

Social Security

875

record in the history of the Employment Service. The marked increase
over 1938 in job placements reflected not only the expansion of employ­
ment opportunities during the year, but also more intensive efforts on
the part of local employment offices to bring workers and job oppor­
tunities together. This is evident from the fact that the volume of
private placements in 1939 was 13.8 percent higher than in 1937, a
year when employment conditions were considerably better than in
1939. In addition to the public and private placements, local employ­
ment offices made more than 1,000,000 supplemental placements—jobs
which the employment service materially assisted in filling, although
not all of the steps required in making complete placements were
performed by the offices.
Complete placements included 2,250,000 for men and 1,250,000 for
women. Placements of workers 45 years of age and over exceeded
the number of placements of job seekers less than 21 years of age.
Placements of older workers numbered 612,000, as compared to 560,000
for the junior group. Juniors accounted for one-eighth of the place­
ments of men and almost one-quarter of the placements of women,
while older workers accounted for one-fifth of the placements of men
and slightly less than 15 percent of the placements of women.
The fields of activity in which the largest number of placements
were made were domestic service, building and construction, and
manufacturing, followed by agriculture and sales activity. More than
one-third of all placements of men were in building and construction
and nearly 15 percent were in manufacturing. Agriculture and
domestic service each accounted for about 14 percent of male place­
ments. Nearly 60 percent of the jobs filled by women were in domestic
service and an additional 30 percent were in manufacturing and sales
activities.
More than 15,000,000 applications for jobs were filed by unem­
ployed workers at local employment offices; this number exceeded the
volume for any previous year. The increase in applications in 1939,
a year in which employment conditions were substantially better than
in 1938, is explained partly by the fact that unemployed workers who
claim unemployment benefits are required to file an application for a
job at a public employment office. As a consequence, workers who
had previously not utilized services of the public employment offices
were availang themselves of this assistance in finding jobs for the first
time. Nearly 6,400,000, or 42.3 percent, of the total applications were
new applications received from persons for whom previous registration
records were unavailable.
At the close of 1939, nearly 5,800,000 persons were registered as job
seekers in the local employment offices, a decline of 1,400,000 from the
number seeking work at the end of 1938. Of the total number
seeking work, 4,300,000 were men and 1,500,000 were women.

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Federal Reserve Bank of St. Louis

876

Monthly Labor Review—April 1940

T able 5.—Activities of Public Employment Services in the United States, 1939, by States
[Data reported by State agencies, corrected to Mar. 25,1940]
Complete placements
Private
State
Total
Number

Percent
of
change
from
1938

Regular
(over 1
month)

+42

Public

Supple­
mental
place­
ments

3,476,889

2, 676, 300

1,296, 548

800, 589

1,038,006

54,099
4,908
30, 896
53, 896
258,865
54,087
53, 762
18,164
40, 644
37, 503

38,555
1,861
26,028
41,340
221,619
45,075
42,455
14,149
36,081
21,975

+uT
+65
+64
+63
+31
+30
+51
+43
+40
0)

23,342
647
17,346
11, 781
102,346
15, 903
25,414
7,660
15, 747
16,951

15, 544
3,047
4,868
12, 556
37,246
9,012
11,307
4,015
4,563
15,528

11,940
325
30,103
28,598
43,012
4,723
3,135
573
443
3, 726

90, 222
6,033
32, 331
138, 968
87,989
90,383
33,874
33, 256
64,036
24,487

55,888
3,019
24,115
135, 270
83,683
61,087
24,459
20, 301
51, 873
16,467

+130
+105
+39
+6
+58
+36
+100
+97
+69
+58

26, 592
1,353
8,380
62,149
47,330
22,857
9,932
10,141
34, 202
12,137

34, 334
3, 014
8, 216
3, 698
4, 306
29,296
9,415
12,955
12,163
8,020

1,812
3,230
4, 761
3, 361
18,435
3,167
4,112
6, 386
9,902
1, 514

M ississippi------ ----- --------- -------Missouri____________ - ------- -M ontana______ - ____ .
-- ----------Nebraska .
------------- -- ---------Nevada_______ _
. . . -------------- New Hampshire_____ -------

43, 480
40,965
130, 543
73,942
64,189
80,674
21, 279
38,827
12,831
25,229

31,534
28,741
101,634
54, 587
23, 875
66,985
9, 767
16,609
9,822
18,617

+49
+51
+135
+18
+59
+120
-2 2
+19
-5 3
+34

17, 513
20, 224
58,918
27,992
15, 663
29,141
5,841
7,486
5,131
12,932

11,946
12,224
28,909
19,355
40, 314
13, 689
11,512
22, 218
3,009
6, 612

1,136
1,398
4, 610
7,489
10,490
821
3,549
1,104
660
1,983

New Jersey________________________
New M exico.. . ____ - . .
---New York________ ____ .
------North Carolina__________ _______
North Dakota-------------------------------Ohio ______________ . . . - -----------Oklahoma-------------- --------------------Oregon
. . ------------------------- -Pennsylvania--------------------------------Rhode Island----------- ------------------

106,463
26,688
247,286
107, 634
36, 738
148, 314
60,477
70,167
124,310
12,025

99, 578
21,311
202,124
63,431
31, 290
128,932
46,169
50,460
94, 269
9,047

+159
-3 2
+56
+11
+7
+79
+42
+77
+32
+12

58,348
10, 551
100,930
36,362
11, 752
64,391
10,104
26,946
61, 592
5,821

6,885
5, 377
45,162
44,203
5,448
19,382
14,308
19,707
30,041
2,978

4,832
15,093
10,466
9,542
1,192
22,948
5,123
48,439
13,548
638

South Carolina___ _
----- ------ .
South Dakota 2______. . . -------T ennessee.. _______ _____
- - Texas______ ________ . . . U tah______________________________
Vermont_______
_____ _______
Virginia
_______________ . . - . . .
Washington_______________________
West Virginia________ ________ -Wisconsin________________________
Wyoming----------- ---------------- ----

37,373
14,121
61,106
360,897
19, 523
14,033
74, 212
75, 729
41, 370
85,736
12,325

15,900
8,718
46, 577
295,875
15,004
9, 069
44,332
66, 627
29,591
83, 801
6,724

+84
«
+71
-4
+55
+36
+44
+313
+49
+35
+20

9,636
3,361
22,351
81,389
4, 644
4,955
31,072
22,314
17, 608
35,927
3,443

21,473
5,403
14,529
65,022
4, 519
4,964
29,880
9,102
11, 779
21,935
5,601

703
985
83,957
567, 565
6,678
176
3,865
8,484
6,366
5,458
450

T otal_____________________________

Arkansas __________________ _____
California _____ ___ _____
___
Colorado- _______ - ---------- -------Connecticut____ _
____ _____ _
Delaware _ ___
- --- ---------District of C o lu m b ia .------ -- . ------Florida____________________________
Hawaii__ _

_________________

--

K entucky. ________ ___ _ _____
Louisiana______ . . .
. . . . . -M aine._________
. ..
- . . . - -M aryland.. _____________
______
Massachusetts__________ _______
Michigan - - - - - - . . . - - . . . - -

1 Florida State employment service suspended operations during 1938. Only public referrals made.
2 State agency suspended operations July 28 to Sept. 26, 1939, inclusive.
3 Decrease of less than 1 percent.


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Social Security

877

T able 5.—Activities of Public Employment Services in the United States, 1939,
by States— C on tin u ed
[D ata reported b y S tate agencies, corrected to M ar. 25, 1940]

Applications

Active file

New
Field
visits

State

Total
Number

T otal______________________

Percent
of
change
from
1938

Total
Dec. 31,
1939

Percent
of
change
from
Dec. 31,
1938

2,108,217

15,094,851

6,379,294

-2 1

5, 746,146

-2 0

25,763
1,624
13, 529
23, 237
127, 220
30,436
21, 271
3,172
3, 259
12,937

248.371
9,849
76,315
108,113
1,347,030
195,201
213,812
46, 547
112, 561
169,120

98, 684
5,435
34,711
59, 222
546, 785
65,663
64,262
14,265
46,123
115,318

-4 2
+26
-3
+3
-3
+25
-6 0
+10
-2 3
+116

149,339
2,706
21,748
57,167
534,375
64, 511
81,230
11. 535
34,170
80,907

-1
+66
-4
-2 2
+67
+38
-2 6
—18
-3 8
-2 6

61,819
1,922
17, 396
75,083
42, 588
46,239
37,459
13, 976
50,284
11,143

304,625
18,145
72, 622
517,745
451,040
212, 309
169, 752
235,014
254,435
113,091

161,620
13,727
26,820
273, 513
183,917
75,903
62,110
135, 365
98,780
29,700

+30
+25
-1 0
+21
-3 5
-1 4
+22
+67
-3 4
-5 2

187, 783
9,651
15, 722
181,658
195,998
91, 991
37,199
76,853
106,424
33, 987

+41
+59
-3 0
-4 0
-1 1
-9
-4 4
-2 2
-1 2
-3 4

M a ry la n d _________________
Massachusetts_____ ___ _
M ichigan.. _ . . .
.. ..
Minnesota ______ _ ____ _
___
M ississippi____ _
Missouri___ ______ .
M o n ta n a ... .... . . .
N eb rask a______ ._
____
... _
N e v a d a ...___ ____
N ew Hampshire.. . ___

22,010
19,907
138,652
88, 360
17, 205
51,052
16, 504
24,845
7,329
12,412

238,448
356,265
666,859
228,422
255, 221
435,325
54, 211
110, 799
31,228
80,068

74, 573
187,466
233,715
84, 601
121,046
212,066
17,252
37,490
11,769
21,217

-4 3
-2 6
-5 8
-3 9
-1 9
+54
-2 6
-3
+53
-5 2

59,441
180,168
209,003
124,816
84, 790
158, 546
28, 620
47,894
6,591
21,706

-1 6
-4 4
-5 0
-3 9
-1
-1 6
-1 4
+13
+66
-3 8

New Jersey_______________ . . .
New Mexico_____
.. .
N ew York_____ ___
North Carolina___________ _
North Dakota___ ________________
O hio... ________________
O klahom a... ____ . . . .
Oregon_________ ______
Pennsylvania___________ ____. . .
Rhode Island__________ . . . _ _____

141,058
18,008
140,409
24,437
11,977
139, 614
36, 429
26,984
122,937
9,410

593,089
60,317
1,830, 569
311,801
66,070
845,856
266,158
161,035
1,270, 220
96, 305

294,048
19,078
930, 346
130,546
25,278
348, 740
108,434
59, 443
398,149
45, 365

+81
-1 9
-2 5
-4 3
+4
+8
+36
-4 5
-4 5
-2 6

276,246
35,397
565, 758
87, 973
23, 576
250,954
87,153
42,071
413,439
37, 531

+18
-5
-3
-4 3
-1 7
-4 4
+48
-5 1
-6 0
-4 6

South C arolina...
______ ______
South Dakota 2___________ . . . .
Tennessee . . . _____ _ _____
Texas___. . .
...
______
Utah ___ _ ________ _
Vermont____________ . .
Virginia ______
_______________
Washington . _____ __________
W est Virginia__ . . . . ______ . . .
Wisconsin____ _____________ . .
W yoming_________ _______ _____

16,187
6,635
35,108
226, 644
10,975
4, 237
25,655
32, 596
20,497
35, 530
4,257

128,861
37,948
167,263
654,692
112,897
36,914
257,399
228,603
251,935
341, 529
42,847

58, 287
13,254
92, 215
330, 271
24, 636
12, 547
104,399
84,490
68,939
104, 567
13,144

-3 9
-2 4
-1 2
-2 4
-2 2
-4 1
-3 2
+14
-6 3
-3 7
+16

104, 579
30,998
134,731
301,004
23, 437
15,540
52,720
114,051
74,733
168, 713
9,013

-2 1
-1 3
-8
+35
+24
-7
+5
-1 6
-5 3
+23

Alabama _________________ _
Alaska_______ __________
Arizona _______________
Arkansas____
California. _______ _ __
Colorado _______
Connecticut____ _______ _
Delaware. ____ .
D istrictofC olum bia... ._
___
Florida______ _____

...

Georgia_____ _______
Hawaii____________
Idaho________ ____
Illinois_________ _ . . . .
Indiana___ _______
Iowa __________________
Kansas . ____ . . .
Kentucky _________ .
Louisiana___ _ . . .
M aine_____ . . . .

State agency suspended operations Ju ly 28 to Sept. 26,1939, inclusive.


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-3

87 8

Monthly Labor Review—April 1940

UNEMPLOYMENT-COMPENSATION OPERATIONS,
FEBRUARY 1940 AND YEAR 1939 1
Activities in February 1940
THE volume of continued-claims receipts was only slightly below the
exceptionally high level of January. The decline for the country as
a whole was due mainly to the relatively sharp decreases reported by
some of the larger States, as the majority of the State agencies reported
increased receipts. Despite the lesser number of working days, bene­
fit payments exceeded $44,300,000.
Approximately 5,800,000 continued claims were received during
February, a decrease of nearly 4 percent. Declines were most pro­
nounced in Illinois, Maine, New Hampshire, New York, Rhode
Island, and Wisconsin. On the other hand, most of the States in the
Midwest, Southwest, Rocky Mountain, and Pacific coast areas re­
ported increased receipts. The rate of increase was notably lower
than in January, however, when the beginning of a new benefit year
accounted for receipt of exceptionally large volumes of claims. Ap­
proximately 23 percent of the continued claims were hied to meet
waiting-period requirements of the State laws.
Benefit payments amounted to more than $44,300,000, an increase
of 8 percent over January. Most of the States reported .larger
amounts of benefit payments; the most pronounced increase occurred
in Oregon, where benefits more than doubled. Increases of 50 per­
cent or more were shown for Delaware, Idaho, Minnesota, Montana,
Nebraska, North Dakota, and Vermont. Increases of 25 percent or
more were shown for the majority of the 39 States reporting increases
in February. Of the jurisdictions reporting reduced amounts of pay­
ments, Hawaii showed the most pronounced decline—35 percent.
Maine, New Hampshire, and Rhode Island were the only other
States of this group which showed a reduction of more than 10 percent.
Nearly 4,300,000 weeks of unemployment were compensated by
benefit payments during the month. The majority of these were
weeks of total unemployment—i. e., 7 days of continued unemploy­
ment. Several States reported, however, that fairly significant pro­
portions of their payments represented compensation for partial and
part-total unemployment, notably New Hampshire, Rhode Island,
Delaware, Illinois, Indiana, and Kansas. Such payments relate to
weeks of less than full unemployment.
More than $910,000,000 has been paid to unemployed workers in
unemployment compensation since benefits first became payable in
this country. Massachusetts, New York, Pennsylvania, Michigan,
and California accounted for 57 percent of this total.
i Prepared by Research and Statistics Division, Bureau of Employment Security, Social Security Board.


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Federal Reserve Bank of St. Louis

Social Security

879

T able 1.— Continued Claims Received, Weeks Compensated, and Benefits Paid,
Regions and States, February 1940

by

[Preliminary data reported by State agencies, corrected to Mar. 13,1940]
. S Continued claims

Weeks compensated

Type

Type of unemployment

Region and State
Total

Partial
and
parttotal
com­
bined i

3 4,278,940

*3,865,027

« 321, 401

66,028
31, 586
192,479
15,703
53,141
12,794
588,002

62,000
30,931
199,619
15, 503
53,141
12,913
584,974

(5)
27,097
199,619
12,641
44,877
11,457
584,974

(5)
3,834
(1)
2,862
8,264
1,456
(0

<•>
1,256
(>)

2,966
60, 715
150, 543

15,208
181,991
389,995

15,103
166, 773
362,744

12,719
166, 773
362,744

2,384
(i)
0)

2,202
(>>
0)

10,091
10,620
24, 758
19,831
(5)

23,881
74,823
70,003
72, 813
(«)

20,833
61,801
66,342
69,308
(5)

20,044
54,612
52,031
64,691
«

789
7,189
3,882
4,617
(')

6,691
3,461
3,870
(6)

93, 543
214,218
337,320

42,040
37,359
114, 672

51,503
176, 859
222,648

45,822
172,646
? 215,193

44,896
164,362
184,223

926
8,284
30,970

342, 904
123, 423
82, 337

42, 382
24, 031
32, 754

300, 522
99,392
49, 583

297, 086
99, 240
50, 212

226,641
84, 597
45,519

70,445 47, 512
00
14,643
4,693 2,198

83, 227
51, 725
78, 581
60, 742
40, 570
115, 219

25, 544
13,116
22,641
11, 356
8,662
21,985

57,68338, 609
55, 940
49, 386
31, 908
93, 234

55, 213
37,997
53,114
38, 948
31,136
65,184

49, 294
31, 742
49, 718
38, 020
26, 310
60,804

5,919
6,255
3,396
i 928
4,826
4,380

4,319
0»
2,792
(>)
2,550
1,475

90, 910
148,146
33, 904
10, 782
8,645

26,107
27, 306
5,294
2, 072
2,189

64,803
120,840
28, 610
8, 710
6,456

64, 657
114, 987
29, 470
7,806
6,197

58,142
108, 548
27, 534
7,269
5,667

6,515
6,439
1,936
537
530

1, 792
(«)
978
31
(«)

52, 005
45, 709
129, 885
63, 098

14, 718
14,887
44,130
13,932

37, 287
30,822
85, 755
49,166

37, 287
30,568
80, 261
48, 702

35,199
26, 321
72, 541
41, 237

2,088
4,247
7, 720
7,465

259
2, 775
1,878
850

92, 564
16, 898
186,364

19,103
3,358
88,600

73,461
13, 540
97, 764

66, 372
12, 216
126, 470

62,599
11, 018
109,554

3, 773
1, 198
16, 916

(6)
857
(6)

16, 000
51,145
36. 223
52,187
21,430
18, 730

3,854
7,968
6, 036
6, 273
2,980
3,664

12,146
43,177
30,187
45, 914
18,450
15,066

11,991
42, 381
27, 454
46,371
18, 433
14, 579

11, 229
38, 595
25, 955
46,371
16, 598
12,826

762
3,786
1, 499
0)
1,835
1,753

96
1,456
<•>
0)
615
1,123

534,197
13,442
97, 018
128, 458

78, 882
1,688
26, 776
25, 448

455, 315
11, 754
70, 242
103, 010

453, 309
9, 869
41, 916
100, 521

386, 002
9,287
37,806
91,575

47, 224
582
4,110
8,946

(6)
61
2, 480
(6)

(5)
4,616

(5)
1,258

(5)
3, 358

(5)
3,347

(5)
2,749

0)
598

(*)
534

Number

TotaL ___________
Region I:
C onnecticut...
M aine. ____
Massachusetts__
N ew Hampshire
Rhode Isla n d .. . .
Vermont____
Region II: New York
Region III:
Delaware. . . .
New J e rse y ...
Pennsylvania...
Region IV:
District of Columbia
Maryland____
North Carolina
Virginia_____
West Virginia. .
Region V:
Kentucky___
M ich ig a n ...
Ohio____
Region VI:
Illinqjs . . .
Indiana_____
W iscon sin___
Region VII:
Alabama. .
Florida__
Georgia_____
Mississippi _
South Carolina____ .
Tennessee
Region VIII:
Iowa____ .
M innesota.
N eb rask a...
North Dakota
South Dakota
Region IX:
Arkansas____
Kansas__
M issouri..
Oklahoma...
Region X:
Louisiana
N ew M exico..
T exas.. _.
Region X I:
Arizona. .
Colorado_______
Idaho___
M ontana. .
U tah___
Wyoming
Region X II:
California..
N evada________
Oregon____
Washington___
Territories:
Alaska____
Hawaii_________ . _

Waiting
period

Compen­
sable

Number

3 5,776, S29

s 1,334,982

3 4,441, 547

83, 876
36,791
239,104
20,498
66,030
17,216
728,612

17,848
5,205
46,625
4, 795
12,889
4,421
140,610

18,174
242, 706
540,538
33, 972
85,443
94, 761
92,644
0 )

See footnotes at end of table.

2 1 7593— 40-------7


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Par­
tial
only 1

0 )
0 )
0 )
m

m

o>>
(•)

0>)

880
T

Monthly Labor Review—April 1940

a b l e

1 .— Continued Claims Received, Weeks Compensated, and Benefits
Regions and States, February 1940— C on tin u ed

Paid, by

[Preliminary data reported by State agencies, corrected to Mar. 13,1940]
Benefits paid
Type of unemployment
Region and State
A m oun t2
Total

Partial
and parttotal com­
bined 1

M onth and
year benefits
first payable

benefits
since first
payable

Partial
only 1

T o ta l_____________________ $44, 328, 275 4$41,011,912 4$2,130,635
R egion I:
C on n ecticu t__________
615,393
(5)
(5)
(5)
M a in e ________________
213,317
192,179
20, 470
(6)
M assach u setts________
1,998, 551
1,998, 551
0)
(')
N ew H am p shire_____ _
14, 386
114, 406
128, 792
(6)
36, 264
467, 466
R hode Island _________
503, 730
C6)
V erm on t______________
6, 603
$5,125
112, 254
118, 880
R egion II: N e w Y o rk _____
6, 883, 774
6, 883,774
(>)
(>)
R egion III:
13, 462
12, 324
110,114
D elaw are_____________
123, 786
N e w Jersey___________
1, 530, 831
0)
1, 530, 831
(')
P en n sylvan ia_________
4,021,211
4,021,211
(')
(')
R egion I V :
5,070
D istrict of C olu m bia-183,724
178, 654
(«)
40,671
37,424
M arylan d ____________
550,879
499,645
9,807
N orth C arolina_______
11, 559
250, 537
309, 462
21,968
17, 485
V irginia______________
489, 505
511, 561
W est V irginia_________
277,021
(5)
(5)
(5)
R egion V:
5, 484
K e n tu ck y ____________
356,042
362, 810
(<b
45, 616
M ich igan _____________
1, 947, 207
1,992, 823
(«)
O hio__________________ 2 2,158,154
160,336
1,943, 655
(«)
R egion V I:
540,833 334,563
Illinois________________
2,961,778
3,508,126
82, 638
Ind iana_______________
924,840
1,007,800
(6)
11,880
30,262
W iscon sin ____________
484,622
514,884
R egion V II:
26, 857
334,179
36,080
A labam a_____________
370,507
38,362
F lorid a_______________
302,380
340,742
(6)
13,807
11,361
Georgia_______________
319,918
333, 725
1 4, 249
M ississip p i_____ _____
220,990
225,456
0)
23,684
12,112
174,656
South C arolina_______
198,477
19,780
5,836
T en n essee____________
452,670
472,616
R egion V III:
40,898
552, 728
9,936
Iow a_________ _______
594,539
49, 211
1,150,861
M inn esota____________
1,200,267
(0)
7,162
14, 722
N ebraska_____________
264, 236
278,965
215
4,250
N orth D a k o ta ________
70,876
75,126
47 535
3,396
South D a k o ta ___ ____
44,115
(6)
R egion IX :
1,077
8,311
A rkansas_____________
208,167
216 478
278 Q80
15,916
26,197
K an sas_______________
252, 783
7, 718
M is s o u r i.........................
39, 755
670,309
710 065
4,473
47,073
O klahom a____________
400,349
447’ 422
Region X :
22,045
L ouisiana____________
510,127
487,846
0)
6.067
8, 828
101,300
N ew M exico_________
110,128
85,695
Texas________________
960,281
874,536
(6)
R egion X I:
128 017
662
5, 573
122,444
A rizona______________
27, 361
8,923
403,033
430! 669
Colorado_____________
12.471
306,006
Idaho________________
318,487
(*)
(l)
514 033
514, 033
M on tan a_____________
(0
4, 518
19S’ 142
13, 208
U ta h ________________
184,934
8, 373
W yom in g____________
14,886
189,671
174, 785
R egion X II:
415,033
California____________ _ 5,684,801
5,148,996
(8)
5,786
546
123, 585
N ev a d a ______________
129,371
19, 511
33, 719
511, 766
477,984
Oregon______________
76,967
1,182,490
W ash in gton _________ - 1, 259, 457
(6)
Territories:
4Q 708
A la sk a -._____ _______
(5)
(5)
(5)
3,250
3,666
23,452
H aw aii_________ ____
27,118

______________S$910, 398, 418
18,438,981
January 1938
8,020,926
___do_ -------50, 571,484
__ __do__ .
4, 572,134
___ do_ ____
___ do. - _ _ 16,131,004
I, 593, 852
___ do_____ ____do_______ 181, 723,394
January 1939
___ do_______
January 1938..

906, 578
17, 618, 357
134,191,418

___ do_______

3. 425,019
16,966.141
13, 205, 410
II,
16, 772, 942

___ do_

-

5, 500, 993
January 1939
80,765,191
July 1938____
?
28,189,891
January 1939..

July'1936 ___
January 1938..
January 1939,April 1938___
July 1938____
January 1938
July 1938____
January 1938..
January 1939..

24,101,772
28,258, 533
16,136,006
13,128,480
4,232,916
3,861,171
3,250,608
3,134,079
11, 577,150
8,840,766
17, 756,407
1, 751,655
670, 312
477, 831

December 1938

2,206,640
2,755,408
6,725, 345
5,133,601

January 1938-,
December 1938
January 1938-.

10,923,542
1,445,323
21,960,822

January 1939,September 1938
July 1939 ____
January 1938-,
January 1939. _

3,678,783
4,227,144
3,073,488
1,611,572
4,531,248
1,481,828

1938,.
1939..
1938-1939,.

73,034, 732
1,053,343
10,673,317
8,310, 339

____do ______

442,951
354,852

January
January
January
January

1 Benefits for partial unemployment are not provided by State law in Massachusetts, M ississippi, M on­
tana, N ew Jersey, N ew York, and Pennsylvania. Of these, only Mississippi provides for payments of
less than full weekly benefit amount for total unemployment, i. e., “part-total” unemployment.
2 Includes supplemental payments, not classified by type of unemployment.
3 Excludes Alaska and W est Virginia.
* Excludes Alaska, Connecticut, and W est Virginia.
_
5 Data not reported.
8 Data on payments for partial unemployment included with that for part-total unemployment.
J Excludes 901 payments amounting to $23,210 arising from recalculation of weekly benefit amounts, This
amount, however, is included in benefits since first payable.


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002,739

Social Security

881

Summary of 1939 Operations
The ranks of the States paying unemployment compensation were
increased by 20 in 1939; 18 jurisdictions began to pay benefits in
January, and 2 in July, so that all States were paying benefits at
some time in 1939. Despite the fact that a comparatively high level
of employment prevailed during the year, approximately $430,000,000
unemployment benefits was paid to 'about 5,000,000 unemployed
workers. Disbursements in 1939 would have been considerably
higher if all States had paid benefits throughout the entire year, and
if such States'as Massachusetts, New York, and Pennsylvania had
paid benefits for partial unemployment.
Although several States were not able to report the volume of
claims received in local offices for each month of the year, available
data indicate that at least 9,800,000 initial claims and 56,500,000 con­
tinued claims were filed by unemployed workers. The initial claim
is a claim filed at the beginning of a period of unemployment, and to
a certain extent reflects lay-offs; continued claims are claims certifying
completion of 7 days or less of unemployment. Since most of the
payments were issued for weeks of total unemployment, it is reason­
able to assume that the bulk of the continued claims represented full
man-weeks of unemployment.
Data on the size of benefit payments for total unemployment during
the last quarter of 1939 indicate that about 10 percent of the payments
were for amounts of less than $6, nearly 34 percent from $6 to $10,
and 56 percent for $10 and over. For individual States, however,
the proportion of payments for these amounts varied widely from
figures for the country as a whole. In four States, for example, more
than 50 percent of the checks were for less than $6, and in eight States,
more than a third of the payments were for less than that amount.
As of June 30, 1939, over 28,000,000 workers had earned wages in
subject employment. Not all of these workers were eligible for un­
employment benefits, since all State laws specify that claimants shall
meet certain eligibility requirements based on prior earnings or em­
ployment, before benefits can be paid. Of 6,600,000 first determi­
nations of new claims in 1939, more than 18 percent were disallowed.
In general, the chief reason for disallowances was that the claimants
had earned less than the required amount in subject employment as
specified by the State laws in order to qualify for benefits. Another
substantial proportion of claimants was found to lack wage records,
indicating that they had not worked in subject employment. Slightly
more than 2 percent of the claims were disallowed for “other” reasons.
Under the provisions of the interstate-benefit payment plan, un­
employed workers are permitted to file claims for benefits on the basis


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882

Monthly Labor Review—April 1940

of the wages earned in other States. The State in which a worker is
residing will accept claims as an “agent” State for forwarding to the
“liable” State, i. e., the State in which wages were earned in covered
employment. During 1939, nearly 324,000 initial claims were filed
by workers who had migrated across State lines. The majority of
these claims were received as liable State by California, Illinois,
Michigan, New York, Ohio, Pennsylvania, and Texas; such claims
were received by these States from practically all other States. In
no case did any jurisdiction except Hawaii receive claims from fewer
than 30 other States during the year. Most of the claims originated
in neighboring States. California, which received the largest number of
interstate initial claims as liable State, was outstanding in the extent
to which its claims originated in other than contiguous States.
T able 2.— Claims Received and Authorized and Amount of Unemployment Benefits Paid,
1939, by States
[Data reported by State agencies, corrected to Mar. 15,1940]
Number of claims
received in local
offices
State
Initial

Amount of benefit'payments 1
Number
of new
claims au­
thorized

Continued

Type of unem ploym ent2
All pay­
ments

Total

P artial3

Total________________________ 9, 764,758 456, 533, 767 s 4,343,087 $429, 820,056 $401, 478, 677 $20,971,096
Alabama____________ _ _ . . .
Alaska________
.
.........
Arizona_____ _________ _ . . .
A r k a n s a s ..._________________
California_______ _______ _ .
Colorado____ . . .
______ _
Connecticut_____________ ____
Delaware. . . .
. . . ___
District of Columbia__________
Florida_____________ ______ _

105,642
4,063
26,964
80, 549
740,860
70, 578
154,055
21,488
23,298
116, 528

913, 536
22, 369
181,972
443, 327
4,941,800
440, 576
751,640
102, 240
263, 208
742,552

50, 652
2,820
14,436
49,759
363,099
35,199
8 71, 514
12, 437
16, 446
53,981

4, 295,367
346,149
1, 523, 523
1, 816, 363
38, 591,849
3,471, 434
5,121,494
711, 588
1,436,715
3, 504,100

3, 548,085
327, 633
1,470, 510
1,667,828
35,072,911
3,154,902
4,779, 401
671, 256
1,333,028
3,061,893

742,386
12,115
53,013
90,081
2,188,979
313,281
324,006
39, 644
65, 431
217,356

Georgia____________________ . 140,893
Hawaii_________________ . . . .
« 8, 265
Idaho________________________
30, 602
Illinois7______ ___________ . . .
453, 390
6
129,
392
Indiana_______________ ______
95, 207
Iowa_______ _____ ____ ____
73,051
Kansas___________ ______
Kentucky____ _
_ ________ 8 142, 930
132,917
Louisiana______ _ _________
104,037
M aine___ ______________ _____

788,965
34,318
268, 270
1, 971, 663
1, 400, 486
813, 025
393, 543
983, 776
922, 262
656,699

59,298
4, 350
5 11, 338
197, 682
98,934
51, 333
36, 415
68, 447
69,149
43,778

3,239, 656
286,679
2,170, 252
16, 797,058
10, 254,330
5, 261,728
2, 288, 232
4, 866, 622
5, 939,987
3,044,164

3,083,413
263,468
1,823,862
14,310,738
8,975, 644
4,826,977
2,037, 340
4, 798,898
5,337, 592
2,574,090

156, 239
23, 211
346,367
2, 250,824
1, 277, 341
417,055
250,892
3 39, 446
392,058
438,673

Maryland _________ _______ _ 8 101, 708
Massachusetts _____ ________ 515, 332
821,849
Michigan. . . . . . . ___ .
103,002
M innesota__________ _______
61,649
M ississip p i...
.... ______ ..
198,670
Missouri____________ ______
18,072
Montana 7________ _________
45, 341
N ebraska... _________ _______
13,985
N evada______________________
39,300
Now Hampshire _______ . . . . .

994,212
2,423,953
2,992,103
1,049,275
362,868
1,188,282
91, 221
226,177
73,145
318,484

58,935
5 194,001
296,176
69,982
26, 204
89,473
9,513
20, 741
6,613
23,177

5, 763,861
19,694,108
37,160,875
7, 601, 237
1,446,939
5,464,683
765,210
1,304,517
815,630
1,552,880

4,501,306
19, 621,556
34,140,030
6,963,019
1,419,491
5,033,380
765,002
1, 281,474
758,124
1,331,936

533,601
(3)
3,020,844
355,116
3 21, 693
461,246
(3)
22,840
57,418
219,644

See footnotes at end of table.


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Social Security
T

a b l e

2.

883

Claims Received and Authorized and Amount of Unemployment Benefits Paid,
1939, by States— C on tin u ed
[Data reported by State agencies, corrected to Mar. 15,1940]
Number of claims
received in local
offices
State
Initial

Number
of new
claims au­
thorized

Amount of benefit payments 1

All pay­
ments

Continued

Type of unem ployment3
Total

Partial3

N ew Jersey___
N ew Mexico__
N ew York____
North Carolina
North Dakota...
Ohio________ _
Oklahoma____
Oregon_______
Pennsylvania'_
Rhode Island...

8 375, 775
36,097
1,860,542
263,429
11, 327
361,044
102,672
125,202
« 648,631
166, 536

2,252,818
176, 399
7, 208,000
1,280,183
83, 239
3,668,892
624,136
541,201
6,446,200
869,288

208,018
11,760
3 312, 649
3 49, 718
7,131
221, 755
52,912
44,433
644,891
87,707

14,910,924
1, 226,364
79,949,429
4,413,222
545,385
23,687,438
4. 244,198
4,072,895
54,675, 767
5,804, 649

14,880,114
1,131,304
79,949,429
3,987,148
507, 738
20,621,427
3,887,001
3,655, 502
52, 615,321
5,369,873

94,999
(3)
250, 263
37,056
1,457,990
357,197
410,307
(31
434,776

South Carolina
South Dakota.
Tennessee____
T exas.......... .
U tah_________
Vermont_____
Virginia______
W ashington__
West Virginia..
Wisconsin____
Wyoming_____

« 113,623
11,377
120,412
275,806
48,453
21,323
125,860
138, 753
207,440
i" 155,564
21,275

652,598
77,426
1,045,103
1,171, 799
225,889
101,909
793, 764
796,019
856,882
795,459
110,611

49,232
5,447
57, 739
3 133,153
20,371
7,357
64,130
78,606
56,311
» 132,621
11, 264

2,146,168
394,181
4,581,561
10,664,495
1,696,253
574,678
4,493,047
6,152,809
4,220,112
3,675,481
1,153, 770

1,455,399
363,865
4, 231,141
9,792,295
« 1,656,357
525,825
4,125,020
5, 592,903
3,891, 562
3,369,956
964, 704

689,813
29,921
329,503
859,923
« 39,895
48, 775
265, 713
559,906
303,441
300,499
170,319

( 3)

I Unadjusted for returned or voided benefit checks.
3 Includes only such payments as identified by type of unemployment.
3 Includes benefits for part-total unemployment, except where otherwise noted. Benefits for partial
unemployment are not provided by State law in Massachusetts, Mississippi, Montana, N ew Jersey, New
York, and Pennsylvania. Of these, only Mississippi provdes for payments of less than full weekly benefit
amount for total unemployment, i. e., “part-total” unemployment. In Kentucky, which pays benefits
for part-total unemployment, the provision for benefits for partial unemployment is not effective until
January 1940.
4 Data for January-March not reported by N ew York.
5 Data for January not reported by Connecticut, Massachusetts, and Texas; for March by Idaho- for
January-March by North Caroina; and for April-August by New York.
6 Excludes “additional” claim.
7 Benefits first payable July 1939.
s Excludes “additional” claims for January-September.
» Payments for part-total unemployment included with payments for total unemployment.
1(1 Includes claims for total and part-total unemployment only.
II Represents “all initial” claims authorized.


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Labor Laws and Court Decisions

LEGISLATION ON WEEKLY REST
BECAUSE of the nature of their work, many persons are required to
labor 7 days a week. Two methods have been adopted by law, in the
United States, to remedy this situation: (1) The prohibition of Sunday
labor, and (2) the requirement of 1 day of rest in 7.
Legislation prohibiting Sunday labor in general has been adopted in
practically all of the States. Most of these laws, however, are so filled
with exceptions that they are for the most part ineffective. Works of
necessity and charity, for instance, are usually excluded from the
Sunday prohibition. Other frequent exceptions are establishments
that must operate continuously, public transportation systems, stores
dispensing bakery products, fruit, and confectionery, and those trades
which are nowadays considered necessary for the general well being.
In some jurisdictions the Sunday legislation applies to too few occu­
pations to be significant. Thus, in four States, Arizona, Montana,
Nevada (in cities of over 500), and Oregon, the work of barbering is
the only occupation prohibited on Sunday. In a number of other
States, such as Colorado, Michigan, North Dakota, Ohio, and Tennes­
see, with general Sunday labor prohibition laws, barbering is also
specifically prohibited.
In Wyoming there is no general prohibition of Sunday labor, but the
legislature of that State has authorized certain local authorities to
make regulations in this matter. California likewise has no specific law
prohibiting Sunday labor, but does require 1 day of rest in 7 for all
employees.
More effective than the so-called Sunday-closing laws is the re­
quirement in a number of States, particularly California, Connecticut,
Illinois, Massachusetts, New Hampshire, New York, and Wisconsin,
that employees must be given a weekly day of rest. Hence any
employee required to work on Sunday must be granted a day off on
some other day in the week. Several States (Connecticut, Illinois,
Massachusetts, Michigan, New Hampshire, New York, Pennsylvania)
have enacted both prohibitory Sunday labor laws and l-day’s-rest-in-7
laws. In the District of Columbia, establishments in which the trade
of barbering, hairdressing, or beauty culture is pursued must remain
closed one day in seven. In Michigan the requirement is limited to
884

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Labor Laws and Court Decisions

885

streetcar motormen and conductors. Pennsylvania requires that
persons working in or about motion-picture houses must be granted
a day of rest each week.
In some of the States the hours of labor of women and children are
limited to 6 days a week, and thus the same result is accomplished, for
those particular groups of workers, as under the l-day-of-rest-in-7 laws.
Although this review concerns principally the existing legislation,
brief reference might be made to the trend by industry itself to shorten
the workweek. This trend may have been influenced by practices under
the NRA codes and also by a belief that only by the shorter workweek
can appreciable gains be made in placing more people in profitable
employment. Thus, in addition to the weekly day of rest, many in­
dustrial establishments have inaugurated the Saturday half-holiday.
In considering the extent to which Sunday has been designated as a
day of rest, collective agreements by employers and employee groups
should also be noted.
Legislation of 1939
During 1939 a number of States acted on the matter of Sundaylabor laws and 1 day of rest in 7. The California weekly-rest law was
extended to druggists, and in Massachusetts the law now covers em­
ployees in mechanical establishments and workshops. In a number of
States, however, the weekly rest law was weakened. In New Hamp­
shire, employees engaged in the canning of perishable goods, as well
as employees of telegraph and telephone offices, no longer are subject
to the 1-day-rest-in-7 law. South Carolina exempted certain textile
maintenance employees, while Alabama and Arkansas exempted
certain delicatessen stores, and theaters and educational institutions,
respectively, from their Sunday laws.
Federal Legislation
In the field of Federal legislation, the Congress has enacted certain
measures that provide weekly rest days for employees of the Govern­
ment. The law governing the hours of labor in the executive depart­
ments specifically excepts Sunday as a day of work. Likewise, Satur­
day half-holidays throughout the year are now granted to certain
classes of civil employees. Special provisions have been made for
employees in the postal service, and for persons employed in certain
other Governmental establishments, such as navy yards, the Bureau
of Engraving and Printing, and the Government Printing Office. In
these agencies a 40-hour week has been established, with an 8-hour
day on 5 days a week.
In the Merchant Marine Act, Congress legislated certain holidays
and rest periods for seamen, and declared that while a vessel is in a
safe harbor “no seaman shall be required to do any unnecessary work

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886

Monthly Labor Review—April 1940

on Sundays.” Thus, in general, employees whose employment is
regulated by the Federal Government are assured of a weekly day
of rest, and in some instances a much shortened^workweek.
Court Decisions
Some of the early court decisions upheld the Sunday-labor laws on
grounds of religious motives. Later they were sustained on the basis
of the police power of the State. However, a California law forbid­
ding Sunday labor was early condemned as a violation of the principle
of religious freedom, in the case of Ex parte Newman (9 Calif. 502).
Such laws are now almost universally upheld as being social and
economic in their effect and constituting a valid expression of public
policy with regard to the well-being and general welfare of persons
within the State. The State, it is reasoned, has the authority to
enact laws for the benefit of the health and welfare of its citizens
under its general police power. However, laws singling out special
places of employment, such as bakeries and barber shops, have in
some cases been held discriminatory and invalid.
The United States Supreme Court, in the case of Hennington v.
Georgia (163 U. S. 299), has discussed the power of a State to pass
legislation establishing a day of rest. The Court in that case said
that—
The legislature having, as will not be disputed, power to enact laws to promote
the order and to secure the comfort, happiness, and health of the people, it was
within its discretion to fix the day when all labor, within the limits of the State,
works of necessity and charity excepted, should cease. It is not for the judiciary
to say th at the wrong day was fixed, much less that the legislature erred when
it assumed th at the best interests of all required that 1 day in 7 should be kept
for the purposes of rest from ordinary labor.

In an earlier case,1 the Supreme Court considered the validity of a
city ordinance in which a prohibition against labor on Sunday and a
requirement of cessation of labor in laundries during certain hours
of the night, were contained in the same section. The Sunday pro­
hibition was not involved, but the Court, in upholding the night
prohibition, cited as an example laws establishing Sunday as a day
of rest, and declared that they are upheld “not from any right of the
government to legislate for the promotion of religious observances
but from its right to protect all persons from the physical and moral
debasement which comes from uninterrupted labor.” It was also
pointed out by the Court that “such laws have always been deemed
beneficent and merciful laws, especially to the poor and dependent,
to the laborers in our factories and workshops and in the heated
rooms of our cities; and their validity has been sustained by the
highest courts of the States.”
> Soon Hing v, Crowley, 113 U. S. 703.


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Labor Laws and Court Decisions

887

A Minnesota law prohibiting Sunday labor was also upheld by the
Supreme Court.2 This law was attacked on the ground that, though
works of necessity or charity were excepted, the statute was invalid
because barbering was specifically declared not to be a work of
necessity or charity.
On the other hand, as previously stated, laws applying only to
certain occupations have been held invalid. As recently as 1936 a
law of this type was held unconstitutional by the Supreme Court of
California.3 The statute under consideration prohibited the opera­
tion of a barber shop more than 6 days a week, and the court held it
invalid as special legislation and thus “repugnant to the Federal and
State Constitutions.” On behalf of the State it was urged that the
measure might be sustained as a sanitary measure, since the closing
of all barber shops for 1 day each week would facilitate the thorough
cleaning of such shops. The court, however, said that perhaps some
barber shops would take advantage of the closing of the shop 1 day
each week to clean it thoroughly but there was no reason “to suppose
that all of them, or even a majority of them, would do so.” Similarly,
the California court on April 30, 1936,4 declared invalid a municipal
ordinance of Oakland which prohibited the delivery of bakery goods
on Sundays and other specified holidays and between the hours of
6 p. m. and 6:30 a. m. on other days. In this case, the court declared
that the ordinance “was not a valid exercise of the city’s police
power,” and constituted “an unwarranted and unreasonable inter­
ference with the carrying on of a lawful business.”
The courts have from time to time had occasion to consider cases
which involved the question of works of necessity or charity. In
Georgia in 1935 5 a person operating a motion-picture theater on
Sunday was convicted of violating a statute which provides that
“any person who shall pursue his business or the work of his ordinary
calling on the Lord’s Day, works of necessity or charity only excepted,
shall be guilty of a misdemeanor.” This conviction was obtained
even though the owner had donated the net proceeds of the Sunday
business to the city for charitable purposes. Another Georgia case
(.Rogers v. State, 4 S. E. (2d) 918) was decided as recently as October
1939. In this case the court pointed out that the purpose of the
statute was to give the people a rest from their employments for the
benefit of their physical and moral nature and not for the purpose of
enforcing the beliefs or tentes of any religious creed or denomination.
In a recent case,6the Supreme Court of Kansas sustained a lower-court
2 Petit v. Minnesota, 177 U. S. 164.
2 Ex parte Scaranino, 60 Pac. (2d) 288.
4 Skaggs v. City of Oakland, 57 Pac. (2d) 478.
« Woods v. State, 185 S. E. 920.
6 State v. Needham, 4 Pac. (2d) 464.


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888

Monthly Labor Review—April 1940

decision which had upheld the contention of a newspaper company
that metropolitan newspapers are a necessity, and therefore the dis­
tribution of them was not a violation of the Sunday law. However,
in general it may be said that the attitude of the courts recently has
been favorable to the extension of legislation that would give the
workers a day of rest each week.
W W W

COURT D ECISIO N S OF IN T E R E S T TO LABOR
Fact-Finding Powers of National Labor Relations Board Exclusive
THE United States Supreme Court again upheld the National Labor
Relations Board in a recent decision by ruling that the Board has
“exclusive power” to make findings of fact from evidence and that
courts have authority only to review questions of law. The decision,
which involved the Waterman Steamship Co., declared in effect that
courts have no authority to substitute their judgment of the facts for
that of the Board. The Fifth Circuit Court of Appeals had refused
to enforce an order of the Board, on the ground that it was based on
“mere suspicion” instead of “substantial evidence.” The court held,
however, that the finding of the Board was based on substantial
evidence, and declared that the lower court had “unwarrantedly
interfered with the exclusive jurisdiction granted the Board by
Congress.” The decision of the Circuit Court was therefore reversed,
with directions to “enforce the Board’s order in its entirety.”
The Supreme Court does not ordinarily review judgments based
solely on questions of fact, but in this case took jurisdiction because
it is of “paramount importance” that courts should not encroach
upon the exclusive power of the Board to make findings of fact. The
National Labor Relations Act provides that “the findings of the Board
as to the facts, if supported by evidence, shall * * * be conclusive,”
and, according to Mr. Justice Black, it was the intention of Congress
“to apply an orderly, informed, and specialized procedure to the com­
plex administrative problems arising in the solution of industrial dis­
putes.” This was not by accident, the Court said, but “in line with a
general policy” which Congress has followed in creating other admin­
istrative agencies. It was emphasized by Mr. Justice Black that the
courts must not encroach upon the fact-finding powers which Congress
as a matter of policy has entrusted to the National Labor Relations
Board. (.National Labor Relations Board v. Waterman Steamship
Corporation, 60 Sup. Ct. 493.)


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Labor Laws and Court Decisions

889

Appointment of Impartial Physicians in Workmen's Compensa­
tion Cases
The Massachusetts Supreme Judicial Court recently ruled on the
question of appointing impartial physicians under the State workmen’s
compensation law. An injured employee had sought to disqualify
a physician, who had been selected from an established list of physi­
cians employed by the industrial accident board to make impartial
examinations, because of the belief that the assigned physician had
been an “insurance doctor” and therefore was not an “impartial”
physician as required by law.
The board had found that the physician was an orthopedic specialist
who had testified many times for insurance companies before the board,
but had never represented them in this particular case.
The high court of the State reasoned that it could not be ruled as a
matter of law that a physician was not impartial simply because he
had testified in behalf of insurance companies nor, the court continued,
“is his impartiality to be determined arithmetically by a count of the
number of times he has testified for insurers as compared with the
number of times he has been called by employees or plaintiffs.” The
court took occasion, however, to remark that if the physician had been
consulted by the employee or the insurance company in respect to the
injury in question, he would have been disqualified.
The court especially admonished the board in the matter of naming
impartial doctors in these words: “We agree with the argument of
the employee that it is the duty of the board to exercise all possible
care to appoint as impartial physicians under the act only such as are
really impartial, and that every effort should be made to avoid the
appearance, as well as the fact, of favoritism or sympathetic inclina­
tion toward one party as against the other.”
The court also found in this case that the doctor was not disqualified
because he was an orthopedic physician instead of a neurologist.
“There is no requirement,” the court said, “that the impartial physi­
cian be a specialist in the particular departments of medicine in whose
fields the employee may place his alleged incapacity at the time of the
hearing.” The court therefore upheld the ruling of the board and the
lower court. (Mattison’s Case, 25 N. E. (2d) 157.)
Compensation Awarded for Injury to a State Senator
The California District Court of Appeal has held that a State
senator injured while returning from a funeral of a colleague was
entitled to workmen’s compensation. The senator had been appointed
a member of a special committee to attend the funeral of a deceased
member of the State senate. The appointment and all the activities
of the committee occurred after the adjournment of the legislature.

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890

Monthly Labor Review—April 1940

As the senator was returning home from the funeral services, in a State
car operated by a State employee, the car overturned and the senator
was injured. The industrial accident commission refused to grant an
award of compensation, although it was admitted that a State senator
is an employee within the meaning of the workmen’s compensation
act.
In holding that compensation should have been awarded, the court
declared that the injury to the State senator occurred “in the course
of his employment.” The court agreed that “there was no express
legislative or constitutional authority for the appointment of a com­
mittee of the senate to attend the funeral of a member of the legisla­
ture,” but pointed out that for many years it has been customary for
senators to attend funerals after adjournment of the senate, as mem­
bers of a committee designated by the presiding officer of that body.
For this reason, the court was of the opinion that attending funerals
of fellow senators by a member specially designated to attend as a
representative of that body, is incidental to the duties of his office
and that the injury sustained by the State senator in this case occurred
in the course of his employment, as he was furthering, the court said,
the business of his employer by rendering a service to the memory of,
and adding dignity and respect to, the office of a deceased officer of
the State. (Rich v. Industrial Accident Commission, 98 Pac. (2d)
249.)


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Labor Laws and Court Decisions

891

M IN IM U M -W A G E LEG ISLA TIO N AS OF JANUARY 1,

1940
MINIMUM-WAGE laws applicable to private employments have
been enacted in 26 States, the District of Columbia, and the Territories
of Alaska and Puerto Rico. Most of these laws were adopted during
the past 6 years and affect chiefly women and minors.
Scope of State Legislation
Following the decision of the United States Supreme Court in 1923
in the case of Adkins v. Children’s Hospital (261 U. S. 525), which
declared the minimum-wage law of the District of Columbia uncon­
stitutional, came a period of inaction in this field of labor legislation.
At the beginning of 1933 minimum-wage laws were on the statute
books of only nine States,1 and in some of those the laws were ineffec­
tive and inoperative. During the legislative year of 1933, however,
seven States 2 enacted minimum-wage laws. Of these, all but Utah
based their laws on a standard bill sponsored by the National Con­
sumers’ League which had been drawn in such a way as to overcome
the objection raised in the Adkins decision. The standard bill does
not attempt to regulate wages generally. It provides that, when­
ever a substantial number of women and minors are receiving less
than a subsistence wage, an investigation shall be made to deter­
mine whether the wages are “fairly and reasonably commensurate
with the value of the service or class of service rendered.” An un­
reasonable wage is defined as “less than the fair and reasonable value
of the services rendered and less than sufficient to meet the minimum
cost of living necessary for health.” A similar law was passed by
Massachusetts in 1934, and by Rhode Island in 1936.
In the Utah law, the State industrial commission is empowered to
ascertain the wages paid, the hours, and conditions of labor in the
various occupations. Upon investigation, if it is determined that the
wages paid “are inadequate to supply the cost of proper living,” the
law provides that the commission shall call a “wage board” into con­
ference. After a public hearing, the commission is empowered to fix
a minimum-wage, a maximum number of hours, and the standard
conditions of labor “demanded by the health and welfare of the
women and minors engaged in any occupation.” A mandatory order
may be subsequently issued setting forth the minimum-wage and the
maximum hours. The constitutionality of this law was recently
upheld by the State supreme court in the case of McGrew v. Industrial
Commission (85 Pac. (2d) 608).
1 California, Colorado, Massachusetts, Minnesota, North Dakota, Oregon, South Dakota, Washington,
and Wisconsin.
» Connecticut, Illinois, New Hampshire, New Jersey, N ew York, Ohio, and Utah.


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892

Monthly Labor Review—April 1940

Action of Supreme Court
Minimum-wage legislation received a set-back in 1936, when the
Supreme Court, by a five to four decision, held the New York law un­
constitutional (Morehead v. New York ex rel. Tipaldo, 298 U. S. 587).3
After this decision was rendered, Massachusetts placed minimum-wage
administration under the department of health, but after a later deci­
sion the legislature restored the administration of the act to the
department of labor and industries.
At the time the New York case was pending in the United States
Supreme Court, the high court of the State of Washington upheld the
minimum-wage law of that State, adopted in 1913.4 The court in
this case said, ‘fit is true that the employer and the employee are
deprived to a certain extent of their liberty to contract by the mini­
mum-wage law. However, if the deprivation is with due process, if
it corrects a known and stated public evil, if it promotes the public
welfare—that is, if it is a reasonable exercise of the police power—it is
constitutional and it is a proper exercise of legislative power.” This
decision was appealed to the United States Supreme Court, and on
March 29, 1937, that Court, by a five to four vote, reversed its previous
ruling on the question of constitutionality of this type of legislation
by declaring that the minimum-wage law for women and minors in
the State of Washington was a valid and proper exercise of power by
the legislature of that State.5
Legislative Impetus
As a result of minimum-wage legislation being held valid for women
and minors by the United States Supreme Court, many States again
considered legislation in this field. During 1937 four States (Arizona,
Nevada, Oklahoma, and Pennsylvania) passed new minimum-wage
laws, and two States (Massachusetts and New York) reenacted their
statutes, while Colorado, Connecticut, Minnesota, and Wisconsin
passed amendatory legislation. In three jurisdictions (Arkansas,
District of Columbia, and Puerto Rico), laws which had been on the
statute books for many years without being enforced were revived and
made effective. Kentucky and Louisiana enacted new minimumwage laws in 1938; in Kansas the minimum-wage law which had been
inoperative since 1925 was revived, and Massachusetts amended its
law. In 1939, new minimum-wage laws were passed by the Legisla3 See M onthly Labor Review, July 1936 (p. 78).
4 Parrish v. West Coast Hotel Co., 55 Pac. (2d) 1083 (1936).
3 West Coast Hotel Co. v. Parrish, 300 U. S. 379; see also M onthly Labor Review, M ay 1937 (p. 1202).


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Labor Laws and Court Decisions

893

tures of Alaska and Maine, and Massachusetts, Minnesota, Nevada,
and New York amended their laws. The Alaska law fixes the mini­
mum wage; the Maine act is applicable only to the industry of packing
fish and fish products in oil, mustard, or tomato sauce, and is of the
“wage board” type.
Most of the minimum-wage laws apply only to women and minors
and do not attempt to afford any protection to men. The first mini­
mum-wage law to include men, as well as women and minors, was the
Oklahoma law of 1937. The supreme court of that State, however,
held this act void, insofar as it applied to wages for men because of
the insufficiency of the title of the act but declared that the invalidity
of these provisions did not affect the validity of its regulation of the
hours of labor of men and of the hours and wages of women.6 Con­
necticut reenacted its law in 1939 so as to extend the provisions to men.
The laws of Alaska and Nevada are applicable to women only.
With the exception of Arkansas, Nevada, South Dakota, Alaska,
and Puerto Rico, where the minimum wages are fixed by law, the laws
generally provide for the establishment of wage boards to investigate
and recommend to the commission or other organization authorized
to administer the law, the minimum wage to be fixed for certain in­
dustries. Such agency may accept or reject the recommendation.
The Arkansas law also empowers the industrial welfare commission,
in case the wages fixed by law are too low or too high, to revise and
adjust the wage in order to make it adequate to supply the necessary
cost of living.
The laws of Arkansas, California, Colorado, Kansas, Louisiana,
Minnesota, North Dakota, Oklahoma, Oregon, Utah, Washington,
Wisconsin, and the District of Columbia make the cost of living the
basis for determining wage rates, while the Connecticut, Illinois,
Maine, New Hampshire, New Jersey, New York, and Ohio laws
provide for establishing minimum-wage rates that are fairly and
reasonably commensurate with the services rendered. Rhode Island
also provides in its minimum-wage law for the latter means of setting
a wage rate, and in addition permits the wage board to consider what
wages the industry can afford to pay. In Arizona, Kentucky, Massa­
chusetts, New York, and Pennsylvania the laws provide for a wage
commensurate with the value of service rendered, and allow the wage
board, in determining a minimum wage, to consider the cost of living.
» Associated Industries of Oklahoma v. Industrial Welfare Commission, 90 Pac. (2d) 899; see also Monthly
Labor Review, M ay 1939 (p. 1105).


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894

Monthly Labor Review—April 1940

Status of Legislation for Men
As previously indicated, the major portion of the State minimumwage legislation in the United States has been limited to women and
minors engaged in private employments. Owing in part to constitu­
tional objections, men have generally been excluded from the scope of
the laws. At present Connecticut is the only State that includes men
within the purview of the minimum-wage law; thus far no test has been
made as to the legality of this legislation.
The first major attempt to establish minimum wages broadly,
covering all employees, took place under the codes of fair competition
established by the National Industrial Recovery Act of 1933. Many
industrial employees were thus provided a minimum wage for a period
of approximately 2 years, until the United States Supreme Court
declared the act unconstitutional.
Later, the Congress of the United States extended the benefits of
minimum-wage legislation to private employees engaged in the prose­
cution of certain Government contracts and subsequently to employees
engaged in certain private industries.
Thus, in 1936 the Congress passed the Walsh-Healey Public Con­
tracts Act (U. S. Code, title 41, secs. 35-45), which provided for the
establishment of minimum labor standards for Government contracts.
The act, among other things, sets standards of minimum wages for
the performance of Government contracts in excess of $10,000. The
minimum wages required are those which have been determined by
the Secretary of Labor.
On June 25, 1938, the President approved the Federal wage and
hour law, known as the Fair Labor Standards Act of 1938.7 This
law provides for a minimum wage and a maximum workweek for
employees engaged in interstate commerce or in the production of
goods for interstate commerce. Certain industries are specifically
exempt. During the first year, beginning October 24, 1938, every
employer subject to the act was required to pay to the employees
engaged in interstate commerce or in the production of goods for such
commerce not less than 25 cents an hour; during the next 6 years not
less than 30 cents an hour; and, after the expiration of 7 years, not
less than 40 cents an hour, or the rate (not less than 30 cents an hour)
prescribed by the Administrator. The minimum-wage rate required
to be paid at the present time is 30 cents an hour.
The act is administered by the Wage and Hour Division in the
United States Department of Labor. This Division is headed by an
7Supp. V to U. S. Code, 1934, title 29, eh. 8; see also M onthly Labor Review, July 1938 (p. 107).


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Labor Laws and Court Decisions

895

Administiator, who is appointed by the President and is empowered
to appoint committees for each industry “ engaged in commerce or in
the production of goods for commerce.”
In the case of these latter laws Congress also established maximum
hours of employment and other working standards. In the case of
the Public Contracts Act, the basic hours of work are 8 in any 1 day
or 40 m any 1 week. Time and one-half must be paid for overtime
work. By the provisions of the Fair Labor Standards Act of 1938,
the present maximum hours are 42 a week. After October 25, 1940,'
the maximum workweek will be fixed at 40 hours. Employees work­
ing in excess of these hours must be paid at a rate of not less than
one and one-half times the regular rate. No attempt, however, has
been made to include provisions relating to hours of labor or child
labor in this report.
IFages on Public Works
Thirty-five States,8 the Congress of the United States, and the Territoiies of Alaska, Hawaii, Puerto Rico, and the Philippines have
enacted legislation relative to the payment of wages of employees
engaged in the construction of public works. The laws include those
statutes which provide for the payment of not less than the current
or prevailing rate of wages in the locality where the work is performed,
and those which fix a stated minimum rate. In 1931, Congress passed
the original Davis-Bacon Act, providing for the payment of the pre­
vailing rate of wages in contracts in excess of $5,000, involving the
construction, alteration, and repair of public buildings of the United
States or the District of Columbia. This law was amended in 1935 9
so as to cover all contracts in excess of $2,000 made by the United
States or the District of Columbia, involving the construction, altera­
tion, or repair of public works, including contracts for painting and
decorating. Under the provisions of the amended act, the United
States Secretary of Labor must predetermine the prevailing rates of
wages to be paid to each class of mechanics and laborers.
Principal Provisions of Laws
The following table shows, in summary form, the principal provi­
sions of the minimum-wage laws, both State and Federal.
8Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana,
Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada!
New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode
Island, Texas, Utah, Vermont, Washington, West Virginia, and Wisconsin.
»Supp. V to U. S. Code, 1934, title 40, see. 276a.

2 1 7 5 9 3 — 40 ------ 8


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896

Mojithly Labor Review—April 1940
Principal Provisions of Minimum-Wage
STATE LEGISLATION

State, and citation

Classes cov­
ered

1939,

Women (over
18 years of
age).

Arizona - . .
(Acts of 1937, 2d
spec, sess., ch.
20.)

Women; minors (either
sex, under
21 years of
age).

(Dig. 1937, secs.
9094-9099.)

nor female
workers.

(Acts of
ch. 80.)

California____ _____
(Deering’s Labor Code, 1937,
sec s. 11711203.)

W om en ;
m in o rs
(either sex
u n d e r 21
years of age,
but commission not au­
thorized to
fix m i n i ­
mum wages
■ for males bet w e e n 18
and 21).
Colorado____ ____ _ Women; mi(Stats. 1935, ch.
nors (either
97, secs. 236sex, under
256; Acts of
18 years of
1937, ch. 189.)
age).


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Exceptions

Occupations or in­
dustries covered

A ny person, firm,
association, or
c o r p o r a t io n .
(Provisions re­
lating to parttim e em ploy­
ment do not in­
clude domestic
or c a re ta k er
service where no
manual labor is
required.)
Women or minors (in- Any occupation
eluding learners or
(defined as any
a p p ren tices) w ith
class of work in
earning capacity imany industry,
paired by age, physi­
trade or busi­
cal or mental defi­
ness, or branch
ciency, or injury, may
t h e r e o f , in
be granted special li­
which women or
minors are gain­
cense authorizing wage
lower than established
fully employed,
minimum for fixed
but not domes­
period.
tic service in em­
ployer’s home or
a g r ic u ltu r a l
labor).
M a n u fa ctu r in g ,
mechanical, or
mercantile es­
ta b lis h m e n t,
laundry, or ex­
press or trans­
portation com­
pany. Does not
apply to cotton
factories, or to
the gathering of
fruits or farm
products.
Women physically de- Any occupation,
fective by age or othertrade, or induswise may by granted
try in which
special license, renewwomen and minable every 6 months,
ors
are emauthorizing employployed.
ment at less than legal
minimum wage. Ap­
prentices or learners:
Special wages set by
c o m m is s io n during
specified periods.
Women physically defective or crippled by
age or otherwise or
less efficient than those
of ordinary ability
may be granted spe­
cial license, stating
wage; licensees must
not exceed one-tenth
of total employed in
establishment.

Any occupation
(construed to in­
clude “any and
every vocation.
trade, pursuit,
and industry”).

Body empowered
to administer law

Attorney general. _

Industrial
sion.

com-

commission.

Industrial welfare
commission of 5
members (1 a
w om an) appointed by Governor for 4 years.

Industrial commission of 3
members (not
more than 1 each
representing employees and em­
p lo y e r s ) , a p ­
pointed by Gov­
ernor, with con­
sent of senate,
for 6 years.

Labor Laws and Court Decisions

897

Laws in Effect in January 1940
STATE LEGISLATION
Method of select­
ing occupations
or industry to
be considered
by this body

Method of arriving at wage awards

Means provided for
securing enforce­
ment of award

P r in c ip le s
by
which amount
of award is de­
termined

N o n c o m p l ia n c e
makes employer
liable to fine or
imprisonment.

Minimum
wage
fixed at $18 per
week, or 45 cents
per hour for parttime
employ­
ment.

At discretion of
commission or
on petition of 20
or more resi­
dents of State,
engaged in a par­
ticular vocation.

Commission appoints wage board, com­
posed of not more than 3 representa­
tives each of employers and of employ­
ees in the occupation (to be selected as
far as practicable from nominations by
respective groups) and of 1 industrial
commissioner designated as chairman.
Board investigates and recommends
minimum wage, which commission
may accept or reject.

N o n c o m p l ia n c e
with mandatory
order is a misdedemeanor punish­
able by fine or imp r iso n m e n t or
both for each of­
fense. Employee
may recover back
wages, costs, and
attorney’s fees.

Wage must be fair­
ly and reason­
ably commensu­
rate with value
of service or class
of service ren­
dered and suffi­
cient to meet the
minimum cost of
living necessary
for health.

If wages fixed by
law are too low
or too high, com­
mission may se­
lect occupation
at discretion.

Minimum wage fixed by law. If mini­
mum fixed by law is too low or too
high, commission after investigation
and hearing may fix wage in occupa­
tion.

Failure to comply
with act is punish­
able by fine for
each day of noncompliance.

If wage is fixed by
commission,
wage must be ade­
quate to supply
necessary cost of
proper living and
to m a i n t a i n
health and wel­
fare.

At discretion of
commission or
upon petition.

Commission may hold hearings and set
minimum wage for occupation, trade,
or industry, or may call a wage board
which reports to commission its find­
ings and recommendations.

Payment of less than
fixed
minimum
wage is a misde­
meanor, punish­
able by fine or im­
prisonment, Em­
ployee may re­
cover back wages
and costs.

Wage must be ade­
quate to supply
necessary cost of
proper
living,
and to maintain
health and wel­
fare of workers.

At discretion of
commission or
at request of not
less than 25 per­
sons engaged in
the occupation.
I n v e s t ig a t io n
conducted by
exam ining
books, papers,
and witnesses,
and by holding
public hearings.

Commission may itself investigate and
set minimum wage for an occupation,
or may establish wage board com­
posed of member of commission and
not more than 3 representatives each
of employers concerned, of female em­
ployees, and of public. Representa­
tives of employers and employees to
be elected by their respective groups;
at least 1 member of every group to be
a 1woman. Wage board investigates
and reports to commission a minimum
wage, which commission may accept
or reject.

Refusal to comply
with law is a mis­
demeanor, punish­
able by fine or imp r is o n m e n t or
both. Employee
may recover back
wages and costs.

Wage must be ade­
quate to supply
necessary cost of
living and to
maintain health
and morals, and
must be suffi­
cient to provide
a reasonable sur­
plus for support
during sickness
or other emer­
gency.


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Monthly Labor Review—-April 1940

898

Principal Provisions of Minimum-Wage
STATE LEGISLATION—Continued

Occupations or in­
dustries covered

Body empowered
to administer law

Any sweatshop oc­
cupation
(de­
fined as indus­
try, trade, busi­
ness, or occupa­
tion paying un­
fair and oppres­
sive wages, but
not in c lu d in g
domestic service
in em p loyer’s
home or labor on
farm).

Commissioner of
labor and fac­
tory inspection
and director of
minimum wage
division which
may be set up in
department of la­
bor.

District of Columbia. Women; mi­ Women (including learn­ Any occupation
(defined as in­
ers or apprentices)
nors (either
(40 U . S. Stat.
dustry, trade, or
with earning capacity
sex, under 18
L. 960.)
branch thereof,
impaired by age or
years of age).
but not includ­
otherwise may be
ing d o m e s t i c
granted special license
service).
authorizing wage low­
er than established
minimum for fixed
period.
industry,
Women
or minors (in­ Any
Women;
miIllinois____________
trade or busi­
cluding learners or ap­
nors(females
(Rev. Stat. 1935,
ness,
branch
prentices) with earn­
u n d e r 18,
ch. 48, secs.
thereof, or class
ing capacity impaired
males under
238-256.)
of work therein,
by age, physical or
21 years of
in which women
mental deficiency, or
age).
or minors are
injury, may obtain
gainfully
em­
special license author­
ployed (not in­
izing wage lower than
cluding domes­
established minimum
tic service in
for fixed period.
em p lo y er’s
home or labor
on farm).
A ny industry or
Kansas____________ Women,learn­
occupation.
ers, and ap­
(Gen. Stat. 1935,
p r e n tic e s ,
secs. 44-639 to
and minors
44-650; 44-601a;
(females un­
74-704 (revived
der 18, males
in 1938).)
u n d e r 21
years of age).

M in im u m -w age
board,appointed
by D . C. Com­
missioners.

Classes cov­
ered

Exceptions

Men, women,
and minors.

Any person (including
learners or appren­
tices) with earning
capacity impaired by
age, physical or men­
tal deficiency, or in­
jury, may obtain spe­
cial license authorizing
wage lower than es­
tablished minimum
for fixed period.

State, and citation

Connecticut----------(Supp. (1939) to
G en. Stat.
1930, ch. 131 a,
p. 414. Origi­
nally enacted
in 1 9 3 3 ,
a m e n d e d in
1937 and reen­
acted in 1939.)

Kentucky_________
(Acts of 1938,
ch. 105.)


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Women; min­
ors (either
sex under 21
years of age).

Women or minors (in­
cluding learners or ap­
prentices) with earn­
ing capacity impaired
by age or physical de­
ficiency or injury, may
be granted a special
license authorizing a
wage lower than the
established minimum
for a fixed period.

A n y in d u s tr y ,
trade, or busi­
ness, or branch
thereof, or class
of work therein,
in which women
or minors are
g a in fu lly e m ­
ployed (not in­
cluding domes­
tic service in the
home of the em­
ployer or labor
on a farm).

Department of la­
bor, having di­
rector and as­
sistant director
ap p oin ted by
Governor with
advice and con­
sent of senate.

Commission of la­
bor and indus­
try composed of
3 members ap­
pointed by Gov­
ernor with con­
sent of the sen­
ate.

Commissioner of
industrial rela­
tions.

Labor Laws and Court Decisions

899

Laws in Effect in January 1940— C o n tin u ed
STATE LEGISLATION—Continued
Method of select­
ing occupations
or industry to
be considered
by this body

Means provided for
securing enforce­
ment of award

P r in c ip le s
by
which
amount
of award is de­
termined

Commissioner after conferring with
director appoints wage board com­
posed of not more than 3 representa­
tives each of employers and employees
concerned (to be selected as far as prac­
ticable from nominations by respec­
tive groups) and of public. After
studying evidence and information in
commissioner’s possession, the board
must within 60 days of its organization,
submit report, including recom­
mended minimum fair-wage standards
for persons in occupation. Board may
differentiate between male, female,
and minor employees and recommend
appropriate minimum fair-wage rates
for each. The commissioner may ac­
cept or reject.
Board convenes conference composed of
not more than 3 representatives each of
employees and employers in the occu­
pation and of public, and of 1 or more
members of board. Conference inves­
tigates and recommends minimum
wage which board may accept or reject.

N o n c o m p lia n c e
with mandatory
order makes em­
ployer liable to
fine or imprison­
ment or both.
Each week in any
day of which an
employee is paid
less than rate set
by order consti­
tutes separate of­
fense as to each
employee so paid.
Employee may re­
cover back wages,
costs, and attor­
ney’s fees.
Refusal to comply
with law is a mis­
demeanor punish­
able by fine or
imprisonment or
both. Employee
may recover back
wages and attor­
ney’s fees.

Wage must be fair­
ly and reason­
ably commensu­
rate with value of
service or class of
service rendered
and sufficient to
meet minimum
cost of living
n e c e s s a r y for
health.

At discretion of
department or
at request of 50
or more resi­
dents of any
county in which
women or mi­
nors are em­
ployed.

Director appoints wage board composed
of not more than 2 representatives each
of employers and employees in the oc­
cupation (to be selected as far as prac­
ticable from nominations submitted
by respective groups) and of 1 disin­
terested person representing public.
The board investigates wage stand­
ards of women or minors in specified
occupation, and recommends mini­
mum wage, which may be accepted or
rejected.

Violation of manda­
tory order is a
misdemeanor pun­
ishable by fine or
imprisonment or
both. Each week
in any day of
which order is not
complied
with
constitutes sepa­
rate offense as to
each
employee
concerned.

Wage must be fair­
ly commensurate
with value of
service rendered,
and sufficient to
meet minimum
cost of living
n e c e s s a r y for
health.

At discretion of
commission.

If, after investigation, the commission is
of the opinion that in any occupation
the wages, hours, and conditions are
prejudicial to the health or welfare of
any substantial number of employees
and are inadequate to supply the
necessary cost of living and to main­
tain the worker in health, it may hold
a hearing, after which it may render
an order and require all employers in
the occupation affected thereby to
comply with it.
Commissioner requests the Governor to
appoint a wage board which shall be
composed of 3 representatives each of
employers and employees in the occu­
pation (to be selected as far as practi­
cable from nominations by the respec­
tive groups) and the public. A report
including recommendations as to a
minimum fair:wage standard for the
women and minors in the occupation,
the wage standards of which the wage
board was appointed to investigate,
must be made to the commissioner by
the wage board within 60 days of its or­
ganization. This report may be ac­
cepted or rejected by the commissioner
within 10 days after it has been sub­
mitted by the wage board.

N oncompliance with
order of commis­
sion is a misde­
meanor punish­
able by a fine for
each offense. E m ­
ployee may recov­
er wages, costs,
and attorney’s fees.

Wage must be
reasonable and
not detrimental
to the health and
welfare of the
workers.

At discretion of
commissioner or
director, or at re­
quest of 50 or
more residents of
State.

At discretion of
board. Investi­
gation con ­
ducted by exam­
ining
papers,
books, and w it­
nesses, and by
holding public
hearings.

At his discretion
or on the peti­
tion of 50 or more
residents of the
State, the com­
missioner may
investigate the
wages being paid
to women or
minors in any
occupation to as­
certain whether
any substantial
number of wom­
en or minors
in said occupa­
tion are receiv­
ing oppressive
and unreasonI able wages.

Method of arriving at wage awards


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Wage must be ade­
quate to supply
necessary cost of
living and to
maintain health
and protect mor­
als.

The payment of Wage must be
wages less than
fairly and reason­
those set by a man­
ably commensu­
datory minimum
rate with the
fair-wage order is a
value of service
misdemeanor pun­
or class of service
ishable by a fine or
rendered and suf­
imprisonment or
ficient to meet
both. Each week
th e m in im u m
in any day of
cost of living nec­
which the order is
essary for health.
not complied with
constitutes a sepa­
rate offense as to
each em p loyee.
Employee may re­
cover back wages,
costs, and reason­
able a tto r n e y ’s
fees.

900

Monthly Labor Review—April 1940
Principal Provisions of Minimum-Wage
STATE LEGISLATION—Continued

State, and citation

Classes cov­
ered

Louisiana_____
(Acts of 1938,
No. 362.)

Women; girls
(u n d e r 18
years of age).

M a in e _____ — __ Women; minors (either
(Acts of 1939,
sex, under
ch. 289.)
21 years of
age).

Occupations or in­
dustries covered

Body empowered
to administer law

Women or girls (includ- Any industry or
occupation, but
ing apprentices in emnot in clu d in g
ployment or occupa­
labor
on a farm
tions usually required
or d o m e s t i c
to be learned by ap­
service.
prentices), physically
defective or crippled
by age or otherwise,
m ay obtain special li­
cense authorizing wage
lower than the legal
minimum to be set by
commissioner of labor
and paid for fixed
period.
Learners and appren- The industry or
business of packtices may be paid less
ing fish and fish
than rates determined
p r o d u c t s in
for experienced wom­
oil, mustard, or
en and minors.
tomato sauce.

Division of minimum wage under the depart­
m ent of labor.

Exceptions

Commissioner of
labor and industry and State
factory inspec­
tor.

W om en; minors (either
sex, under
21 years of
age).

Women or minors (ineluding learners or apprentices), with earning capacity impaired
by age, physical or
mental deficiency, or
injury, may be grant­
ed
special
license
authorizing wage low­
er than established
minimum for fixed
period.

Any occupation
(defined as industry, trade, or
b u s i n e s s , or
branch thereof,
or class of work
t h e r e i n , in
which women or
minors are gain­
fully employed,
but not includ­
in g d o m e s tic
service in em­
ployer’s home or
labor on farm).

The m i n i m u m
wage commission consisting
of associate commissioners of the
department of
labor and indus­
tries.

Minnesota.................. Women; minors (either
(Mason’s Stat.
sex, under
1927, sees. 42104232
(as
21. years of
amended 1937;
age).
ch. 79; 1939,
ch. 186).)

Women physically defective may obtain
license fixing wage
lower than established
m inim um . Licensees
must not exceed l/\n
of total employed in
establishment.

Any occupation
(defined as any
business, industry, trade, or
b r a n c h of a
trade).

Industrial commission of 3
members, appointed by Governor with ad­
vice and consent
of senate, for 6
years.

W omen______ During probationary pe­
riod not to exceed 3
consecutive months
wage of not less than
$2 per day or $12 per
week may be paid.

All occupations,
except govern­
mental and do­
mestic service.

L abor c om m is­
sioner,
desig­
nated by the
Governor.

M assachusetts-----(Acts of 1934,
ch. 308 (as
am ended
1935, ch. 267;
' 1936, ch. 430;
1937, ch 401;
1939, ch. 275.)

Nevada- _________
(Acts of 1937, ch.
207 (as amend­
ed 1939, ch.
78).)


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Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

901

Laws in Effect in January 1940— C o n tin u ed
STATE LEGISLATION—Continued
Method of select­
ing occupations
or industry to
he
considered
by this body

Method of arriving at wage awards

Means provided for
securing enforce­
ment of award

P r in c ip le s
by
which amount
of award is de­
termined

At discretion of
th e c o m m is ­
sioner. Investi­
gation conducted
by examining
all books, pay
rolls, or other
records, and by
holding public
hearings.

Commissioner calls a conference com­
posed of an equal number of represent­
atives of employers and employees in
the occupation or industry involved,
and one or more persons representing
the public. He presents information
in his possession to conference which
must, within 60 days of its organiza­
tion, recommend a minimum wage
which commissioner may accept or
reject.

Payment of wages
less than the mini­
mum wage speci­
fied is a misde­
meanor, punish­
able by a fine.
Employee may re­
cover back wages,
together with costs
and attorney’s fees
to be fixed by the
court.

Wage and condi­
tions of labor
must be reason­
able and not
detrimental t o
health and mor­
als; must be suf­
ficient for the
decent mainte­
nance of women
and girls.

At the discretion
of commissioner
or on petition of
50 or more resi­
dents of the
State.

Commissioner appoints wage board com. posed of not more than 3 representa­
tives each of employers and employees
concerned (to be selected as far as possi­
ble from nominations by respective
groups) and of the public. After pub­
lic hearing wage board determines ap­
propriate minimum fair-wage rates,
and reports to commissioner who
serves copy of report, findings, and de­
termination on each employer. There­
upon the rates become effective.

Wage must be fair­
ly and reasonably
c o m m e n su r a te
with the value of
service or class of
service rendered
and sufficient to
meet minimum
cost of living
n e c e s s a r y for
health.

At discretion of
commissioner or
on petition of 50
or more citizens
of the Common­
wealth.

The commission (associate commissioners
of the department of labor and indus­
tries) appoints wage board, composed
of not more than 3 representatives each
of employers and employees in the oc­
cupation (to be selected as far as prac­
ticable from nominations by respec­
tive groups) and of public. Board in­
vestigates and recommends minimum
wage, which commission may accept
or reject.

At discretion of
commission or
at request of 100
persons engaged
in the occupa­
tio n . I n v e s ti­
gation
con­
ducted by ex­
amining papers,
books, and w it­
nesses, and by
holding public
hearings.

Commission may itself investigate and
determine a minimum wage for occu­
pation in question, or may establish
advisory board composed of not less
than 3 nor more than 10 representa­
tives each of employers and of employ­
ees in the occupation and 1 or more
representatives of public (but no more
representatives of public than in
either one of the other groups). At
least M of board must be women and
public group must contain at least 1
woman. After examination of books
and witnesses, board recommends
minimum wage, which commission
may accept oi reject.
Minimum wage fixed by law __________

Noncompliance
makes employer
liable to fine or imp r i s o n m e n t or
both. Each day in
any
week
on
which employee is
paid less than rate
applicable under
report constitutes
a separate offense.
Employee may re­
cover back wages,
costs, and attor­
ney’s fees.
Paym ent of wages
less than those set
by mandatory or­
der is punishable
by fine or im ­
p r iso n m e n t or
both. Each week
in a n y d a y of
which order is not
c o m p l i e d with
constitutes sepa­
rate offense as to
each employee so
paid. Employee
may recover back
wages, costs, and
attorney’s fees.
Refusal to comply
with law is a mis­
demeanor, pun­
ishable by fine or
imprisonment.
Employee may re­
cover back wages,
costs, and attor­
ney’s fees.


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Federal Reserve Bank of St. Louis

Refusal to comply
with law is a mis­
demeanor, punish­
able by fine or im­
prisonment
or
both.

Wage must be fair­
ly and reasonably
c o m m e n s urate
with value of the
service or class of
service rendered
and sufficient to
meet minimum
cost of living
necessary
fo r
health.

Amount must be
adequate to sup­
ply living wages
for women and
minors of ordi­
nary ability and
for learners and
apprentices.

M inimum
wage
fixed at $3 a day
or $18 a week.

Monthly Labor Review—April 1940

902

Principal Provisions of Minimum-Wage
STATE LEGISLATION—Continued

State, and citation

Classes cov­
ered

New Hampshire------ Women; mi­
nors (either
(Acts of 1933. ch.
sex, under
87.)
21 years of
age).

Exceptions

Occupations or in­
dustries covered

Body empowered
to administer law

Women or minors (in­
cluding learners or ap­
prentices) with earn­
ing capacity impaired
by age, physical or
mental deficiency, or
i n j u r y , m a y be
granted special license
authorizing wage low­
er than established
minimum for fixed
period.

A ny occupation
(defined as in­
dustry, trade, or
b u s i n e s s , or
branch thereof,
or class of work
therein, but not
in clu d in g do­
mestic service in
e m p l o y e r ’s
home or labor
on farm).

Labor c o m m i s ­
sioner, appoint­
ed b y Governor,
with advice and
consent of coun­
cil, for 3 years.

Women or minors (in­
cluding learners or ap­
prentices) with earn­
ing capacity impaired
by age. physical or
mental deficiency, or
i n j u r y , m a y be
granted special license
authorizing wage low­
er than established
minimum for fixed
period.

A ny occupation Commissioner of
labor, with di­
(defined as in­
rector of mini­
dustry, trade, or
mum wage divi­
b u sin e s s,
or
sion and such
branch thereof,
or class of work
deputy d i r e c ­
tors as commis­
therein, but not
including
do­
sioner deems ad­
visable.
mestic service in
e m p l o y e r ’s
home, labor on
farm, or em­
ployment in a
hotel).
New York_________ Women; mi­ Women or minors (in­ A ny occupation Division of mini­
cluding learners or ap­
mum wage un­
nors (either
(defined as in­
(Supp. (1931-35)
prentices) with earn­
dustry, trade, or
der department
sex, under
to C a h i l l ’s
ing capacity impaired
business,
or
of labor.
21 years of
C o n s o l . L.,
by age, physical or
class of work
1930, ch. 32, art.
age).
mental deficiency, or
in which women
19 (as amended
i n j u r y , m a y be
or minors are
1937, ch. 276;
granted special license
gainfully
em­
1939, chs. 244,
authorizing wage low­
ployed, but not
499).)
er than established
including
do­
minimum for fixed
mestic service
period.
in
employer’s
home or labor
on farm).
North Dakota_____ Women; mi­ Females physically de­ Any occupation Commissioner of
(defined as busi­
fective by age or other­
agriculture and
nors (either
(Supp. (1913-25)
wise (or apprentices or
ness, industry,
sex, under
labor.
to Comp. Laws
learners in occupation
trade, or branch
18 years of
1913, secs. 396b
usually requiring such)
thereof, but not
age).
l-396b 16 (as
may be granted special
including agri­
amended 1935,
license authorizing
cultural or do­
ch. 162).)
wage lower than es­
mestic service).
tablished minimum.
Ohio______________ Women; mi­ Women or minors (in­ A ny occupation Director of indus­
cluding learners or ap­
(defined as in­
trial relations,
nors (either
(Acts of 1933,
with superin­
dustry, trade, or
prentices) with earn­
sex, under 21
p. 502.)
tendent of mini­
ing capacity impaired
b u s i n e s s , or
years of age).
branch thereof,
by age, physical or
mum wage divi­
mental deficiency, or
or class of work
sion and such
therein, in which
injury, may be granted
assistant super­
women or mi­
special license author­
in ten d e n ts as
nors are gainfully
izing wage lower than
may be neces­
established minimum
employed, but
sary.
not
including
for fixed period.
domestic service
in employer’s
home or labor
on farm).

New Jersey—...........
(Rev. Stat. 1937,
secs. 34:11-34
to 34:11-56.)

Women; mi­
nors (either
sex, under
21 years of
age).


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Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

903

Laws in Effect in January 1940— C on tin u ed
STATE LEGISLATION—Continued
M ethod of select­
ing occupations
or industry to
be considered
by this body

Method of arriving at wage awards

At discretion of
co m m issio n e r
or on petition of
50 or more resi­
dents of State.
I n v e s tig a tio n
conducted by
examination of
books and rec­
ords and other
relevant
evi­
dence.

Commissioner appoints wage board
composed of not more than 3 repre­
sentatives each of employers and em­
ployees in the occupation (to be so­
le cted as far as practicable from nomi­
nations by respective groups) and of
public. Board investigates and rec­
ommends minimum wage which com­
missioner may accept or reject.

At discretion of
c o m m issio n e r
or on petition of
50 or more resi­
dents of State.

Commissioner appoints wage board
composed of not more than 3 repre­
sentatives each of employers and em­
ployees in the occupation (to be se­
lected as far as practicable from nomi­
nations by respective groups) and of
public. Board investigates and rec­
ommends minimum wage', which com­
missioner may accept or reject.

At discretion of
c o m m issio n e r
of labor or on
petition of 50 or
more residents
of State, en­
gaged in or af­
fected by occu­
pation sought to
be investigated.

Commissioner appoints wage board
composed of not more than 3 repre­
sentatives each of employers and em­
ployees in the occupation (to be se­
lected as far as practicable from nomi­
nations by respective groups) and of
public. Board investigates and rec­
ommends minimum wage, which com­
missioner may accept or reject.

At discretion of Commissioner organizes conference com­
com m issioner.
posed of not more than 3 representa­
I n v e s tig a tio n
tives each of employers and of employ­
conducted by ex­
ees in the occupation in question and
amining papers,
of public, and 1 or more commissioners.
books, and w it­
Conference investigates and recom­
nesses, and by
mends minimum wage, which de­
holding public
partment of agriculture and labor may
hearings.
accept or reject.
At discretion of di­ Director appoints wage board composed
rector or on pe­
of not more than 3 representatives each
tition of 50 or
of employers and of employees in the
more residents
occupation (to be selected as far as
of State.
practicable from nominations by re­
spective groups) and of public. Board
investigates and recommends mini­
mum wage, which director may ac­
cept or reject.


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Federal Reserve Bank of St. Louis

Means provided for
securing enforce­
ment of award

P r in c ip le s
by
which amount
of award is de­
termined

N oncompliance
with mandatory
order makes em­
ployer liable to
fine or imprison­
ment or both.
Each week in any
day of which an
employee is paid
less than the rate
set by order con­
stitutes separate
offense as to each
employee so paid.
E m p lo y e e m ay
recover back wages
and costs.
Payment of wages
less than those set
by mandatory or­
der is a misde­
meanor, punisha­
ble by fine or im ­
prisonment
or
both. Each week
in any day of
which order is not
obeyed is sepa­
rate offense.

Wage must be fair­
ly and reason­
ably commensu­
rate with value
of service or class
of service ren­
dered and suffi­
cient to meet
minimum cost of
living necessary
for health.

Wage must be fair­
ly and reason­
ably commensu­
rate with value
of service or class
of service ren­
dered and suffi­
cient to m e e t
minimum cost of
living necessary
for health.

Paym ent of wages Wage must be fair­
less than those set
ly and reason­
by mandatory or­
ably commensu­
der is a misde­
rate with value
meanor, punishaof service ren­
able by fine or
dered, sufficient
to provide ade­
imprisonment or
both. Each fail­
quate m a i n teure to pay any em­
nance, and to pro­
ployee in any
tect health.
week the rate ap­
plicable
consti­
tutes a separate
offense.
Refusal to comply Wage must be ade­
with order of com­
quate to supply
necessary cost of
missioner is a mis­
demeanor, punish­
living and mainable by fine or
tain
woman
imprisonment or
workers in good
health. Reason­
both. Employee
may recover back
able wages for
wages and fees.
minor workers.
Payment of wages Wage m u s t be
less than those set
fairly and reason­
by mandatory or­
ably commensu­
der is a misde­
rate with value of
meanor, punish­
service or class of
able by fine or imservice rendered
p r is o n m e n t or
and su ffic ie n t
both. Each week
to meet mini­
in any day of
mum cost of liv­
which order is not
ing necessary for
complied with conhealth.
constitutes sepa­
rate offense as to
each employee so
paid.

Monthly Labor Review—April 1940

904

Principal Provisions of Minimum-Wage
STATE JLEGISLATION—Continued

State, and citation

Classes cov­
ered

Oklahoma_________ Women or m i­
nors (either
(Supp. 1938 to
sex, under
Stat. 1931,secs.
18 years of
10896a-10896y.)>
age).

Exceptions

Occupations or in­
dustries covered

Body empowered
to administer law

Women physically de­ A n y occupation
except agricul­
fective or crippled by
ture, horticul­
age or otherwise (or
ture, or dairy, or
learners or apprentices
stock raising.
in occupations usually
requiring such) may
be granted special li­
cense authorizing wage
lower than established
minimum for fixed
period.

Industrial welfare
commission,
c o m p o s e d of
Governor, com­
missioner of la­
bor, and chair­
man of State in­
dustrial commis­
sion.

Oregon____________
(Code 1930, secs.
49-301 to 493 2 0 (a s
amended 1931,
ch. 394; 1933
(2d spec, sess.)
ch. 88).)

Women; mi­
nors (either
sek, under
18 years of
age).

Women physically de­
fective or crippled by
age or otherwise may
obtain special license
authorizing
wage
lower than established
minimum.

Any occupation
(defined as any
and every voca­
tion , p u rsuit,
trade, and in­
dustry) .

State welfare com­
mission of 3
m e m b e r s ap­
pointed by Gov­
ernor for 4 years.

Pennsylvania______
(Acts of 1937,
No. 248.)

Women; mi­
nors (either
sex, under
21 years of
age).

Women or minors (in­
cluding learners or
a p p r e n tic e s ) w i t h
earning capacity im ­
paired by age, physi­
cal or mental defi­
ciency, or injury may
obtain special license
aut ho r i zi ng w age
lower than established
minimum for fixed
period.

A n y in d u s tr y ,
trade, business,
or class of work
in which minors
or women are
ga in fu lly e m ­
ployed (not in­
cluding domes­
tic service in
home of ejmployer or serv­
ice in a religious
community or
labor on farm,
or boys lawfully
employed in sale
or delivery of
newspapers and
magazines).

D e p a r t m e n t of
labor and in­
dustry.

Puerto Rico_______
(Acts of 1919,
No. 45; Acts of
1931, No. 15.)
Rhode Island______
(Gen. T,. 1938, ch.
289.)

Women
girls.

and

First 3 weeks of ap­
prenticeship.

Commissioner of
labor.

W om en; m i­
nors (either
sex, under
21 years of
age).

Women or minors (in­
cluding learners or ap­
prentices) with earn­
ing capacity impaired
by age, physical, or
mental deficiency, or
injury, may be granted
special license author­
izing wage lower than
established minimum
for fixed period.

Any occupation
except agricul­
ture or agricul­
tural industries.
Any occupation
(defined as in­
dustry, trade, or
b u s i n e s s , or
branch thereof,
or class of work
in which women
or minors are
g a in fu lly e m ­
ployed, but not
in c lu d in g do­
mestic service
in e m p lo y e r ’s
home or labor
, on farm).

Director of labor..

i This law was held unconstitutional as applied to men in the case of Associated Industries of Oklahoma v.

Industrial Welfare Commission, 90 Pac. (2d) 899.


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Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions
Laws in Effect in

905

J a n u a r y 1 9 4 0 — C on tin u ed

STATE LEGISLATION—Continued
M ethod of select­
ing occupations
or industry to
be considered
by this body
Commission em­
powered to in­
vestigate various
» c c u p a t io n s ,
trades, and in­
dustries.

At discretion of
commission.
I n v e s tig a tio n
conducted by
examining pa­
pers, books, and
witnesses, and
by holding pub­
lic hearings.
At discretion of
department or
at request of 50
or more resi­
dents of the
C o m m o n wealth.

Method of arriving at wage awards

Commission organizes conference com­
posed of equal number or representa­
tives of employers and employees in
the occupation, 1 or more representa­
tives of public (but no more represent­
atives of public than in either one of
the other groups), and a member of
commission. Conference recommends
minimum wage, which commission
may accept or reject. In case of mi­
nors, commission may at its discretion
set minimum wage.
Commission organizes conference com­
posed of not more than 3 representa­
tives each of employers and of em­
ployees in the occupation and of
public, and 1 or more commissioners.
Conference investigates and recom­
mends minimum wage, which com­
mission may accept or reject.
Secretary of labor and industry appoints
wage board composed of not more
than 3 representatives each of em­
ployers and of employees concerned
(to be selected as far as practicable
from nominations by respective
groups) and of public. After study­
ing evidence and information in
secretary’s possession, board must,
within 60 days of its organization,
submit report, including recom­
mended minimum fair-wage stand­
ards for women and minors in occu­
pation. The department may accept
or reject this report.

Minimum wage fixed by law.

At discretion of
director, or on
petition of 50 or
more residents
of the State.

Director appoints wage board composed
of not more than 3 representatives
each of employers and of employees in
the occupation (to be selected as far as
practicable from nominations by re­
spective groups) and of public. Board
investigates and recommends m ini­
mum wage, which commissioner may
accept or reject.


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Federal Reserve Bank of St. Louis

Means provided for
securing enforce­
ment of award

Principles
by
which
amount
of award is de­
termined

Refusal to comply
with the order is a
misdemeanor pun­
ishable by fine.
Employee may re­
cover back wages,
costs, and attor­
ney’s fees.

Wage must be ade­
quate to supply
necessary cost of
proper l i v i n g ,
and to maintain
health and mor­
als of Workers.

Refusal to comply
with law is a mis­
demeanor punish­
able by fine or imp r is o n m e n t or
both. Employee
may recover back
wages and attor­
ney’s fees.
Noncompliance
with mandatory
order makes em­
ployer liable to
fine or imprison­
ment or both.
Each week, in any
day of which an
employee is paid
less than rate set
by order, consti­
tutes separate of­
fense as to each
employee so paid.
Employee may re­
cover back wages,
costs, and attor­
ney’s fees.

Wage must be ade­
quate to supply
necessary cost of
living and to
maintain work­
ers in h e a l t h .
Wages of minors
must be reason­
able.
Wage must be
fairly and rea­
s o n a b ly c o m ­
mensurate with
value of service
or class of service
rendered.

Refusal to comply
with law is a mis­
demeanor punish­
able by a fine.
Noncompliance
w ith mandatory
order is a misde­
meanor, punish­
able by fine or
imprisonment or
both. Each week,
in any day of which
order is not com­
plied with, consti­
tutes separate of­
fense as to each
employee so paid.

Wage m u s t be
f ai rl y and r e a­
sonably commen­
surate with value
of service or class
of service ren­
dered and not
greater than in­
dustry can afford
to pay.

906

Monthly Lahor Review—April 1940
Principal Provisions of Minimum-Wage
STATE LEGISLATION—Continued

State, and citation

Classes cov­
ered

Exceptions

Occupations or in­
dustries covered

Body empowered
to administer law

South Dakota_____
(Code, 1939, secs.
17.0607,17.0608,
17.9901.)

Women and
girls over 14
years of age.

Women mentally or
physically deficient,
a n d l e a r n e r s or
apprentices, may ob­
tain a permit fixing a
wage lower than es­
tablished minimum.

Any factory, work­
shop, mechanical
or m e r c a n tile
estab lish m en t,
laundry, hotel,
restau ran t, or
packing house.

Secretary of agri­
culture.

U tah______________
(Supp. (1939) to
R e v . S ta ts.
1933, secs. 422A-1 to 42-2A17.)

Women: mi­
nors (either
sex, under
21 years of
age, but com­
mission not
authorized to
fix minimum
wages and
maximum
h o u r s for
males b e ­
t w e e n 18
and 21).
Women; m i­
nors (either
sex, under 18
years of age.)

Women physically de­
fective by age or other­
wise may be granted
special license. L i­
cense must be renewed
every 6 months. Ap­
prentices or learners:
Special wages set by
co m m issio n du rin g
specified period of ap­
prenticeship.

Occupations,trades,
and industries
in which women
or minors are
employed.

In d u str ia l com ­
m i s s i o n of 3
m e m b er s, a p ­
pointed by Gov­
ernor for 6 years.

Women physically de­
fective or crippled by
age or otherwise (or
apprentices in occupa­
tions usually requir­
ing such) may secure
license authorizing
wage lower than legal
minimum.

Industrial welfare
committee com­
posed of director
of labor and in­
dus t r i e s , ap­
pointed by Gov­
ernor with con­
sent of senate
and holding of­
fice at his pleas­
ure; supervisor
of industrial ins u r a n c e and
supervisor of in­
d u str ia l rela­
tions, appointed
by director of
labor and indus­
tries; and super­
visor of women
in industry, app o i n t e d by
supervisor of industrialrelations
with approval
of director of
labor and indus­
tries.
Every person in Industrial com­
mission, whose
receipt of, or en
members are ap­
titled to, any
pointed by Gov­
compensation for
ernor, with ad­
labor performed
for any employ­
vice and consent
er.
of senate, for 6
years.

W ashington_______
( R e m i n g t o n ’s
R e v . S ta ts.
1931,secs.76237641; 10840.)

Wisconsin________
(Stat. 1937, secs.
104.01-104.12;
101.28.)

Women; m i­
nors.


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Federal Reserve Bank of St. Louis

Women or minors un
able to earn minimum
may obtain license
fixing lower wage com­
mensurate with their
ability.

Occupations,
trades, and in­
dustries.

Labor Laws and Cowl Decisions

907

Laws in Effect in January 1940— C on tin u ed
STATE LEGISLATION-Continued
Method of select­
ing occupations
or industry to
be
considered
by this body

Method of arriving at wage awards

At discretion of Commission calls wage board composed
commission.
of equal number of representatives of
I n v e s tig a tio n
employers and employees in the trade,
con d u cted by
with a representative of commission
examining papers,
as chairman. Board investigates
books, and w it­
and reports to commission, which fixes
nesses, and by
minimum wage after public hearing.
holding public
hearings.

At discretion of
committee. In­
vestigation con­
ducted byexam ­
in in g papers,
books, and w it­
nesses, and by
holding public
hearings.

Committee organizes conference com­
posed of equal number of representa­
tives of employers and employees in
occupation in question, 1 or more rep­
resentatives of public (but no more
representatives of public than in either
one of the other groups), and a member
of committee.
Conference recom­
mends minimum wage, which com­
mittee may accept or reject.

At discretion of
commission or
on verified com­
plaint filed by
any person.

Commission organizes advisory wage
board, selected fairly to represent em­
ployers, employees, and public. L iv­
ing wage, determined by commission
and advisory board, shall be the living
wage for women and minors within the
same class as established by the com­
mission.


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Federal Reserve Bank of St. Louis

Means provided for
securing enforce­
ment of award

Refusal to comply
with law a misde­
meanor and pun­
ishable by fine or
imprisonment, or
both. Employee
may recover back
wages and costs.
Payment of less than
fixed m in im um
wage or refusal to
comply with pro­
visions of law is a
misdemeanor.
Employee may re­
cover back wages
and costs.

Payment of wages
less than standard
minimum or re­
fusal to comply
with law is a mis­
demeanor punish­
able by fine. Em­
ployee' m ay re­
cover back wages,
costs, and attor­
ney’s fees.

Payment of a wage
lower than a living
wage is deemed
violation of law,
and may be pun­
ished by a fine.

Principles
by
which
amount
of award is de­
termined

Wage must be ade­
quate to supply
to women and
minors the cost
of proper living,
and to maintain
the health and
welfare of such
workers.

Amount must be
a reasonable
wage, not detri­
mental to health
and morals and
sufficient for de­
cent mainte­
nance of women.

Amount must be a
“living wage,”
i. e., sufficient to
m a i n t a i n em ­
ployee under con­
ditions consist­
ent with his
or her welfare.

Monthly Labor Review—-April 1940

908

Principal Provisions of Minimum-Wage
FEDERAL LEGISLATION

Classes cov­
ered

State, and citation

United States______
(Supp. V to U.
S. Code 1934,
title 41, secs.
35-48. (WalshHealey Act.))

Exceptions

Occupations or in­
dustries covered

Body empowered
to administer law

All employees
of contrac­
tors manu­
facturing or
f urni s hi ng
ma t e r i a l s ,
supplies, art i c l e s , or
eq u ip m e n t
in
any
amount exceed in g
$10,000 for
the United
States or its
in stru m en ­
talities.

The Secretary of Labor A n y contractor Administrator of
Public C on­
having a con­
may make exceptions
tracts, U. S. D e­
tract with the
in specific cases or
partment of La­
United States or
otherwise when jus­
bor.
its instrumen­
tice or public interest
talities for man­
will be served. Act
ufacture or fur­
does not apply to ma­
nishing of ma­
terials usually bought
terial, supplies,
on open market, or
to perishables, includ­
articles, or equip­
ing dairy, livestock,
ment in amount
in e x c e s s of
and nursery products
or to agricultural or
$10,000.
farm products, pro­
cessed for first sale by
original producers; or
to contracts made by
Secretary of Agricul­
ture for purchase of
agricultural products.
It also does not apply
to carriage of freight
or personnel by vessel,
airplane, bus, truck,
express or railway line
where published tariff
rates are in effect or to
common carriers sub­
ject to the Communi­
cations Act of 1934.

Men, women,
and minors
14 years of
age and over
engaged in
int ers tate
commerce or
the produc­
tion of goods
fo r c o m ­
merce.

Employees engaged in
a bona fide executive,
administrative, p r o ­
fessional, or local re­
tailing capacity, or in
capacity of outside
salesman, or engaged
in any retail or servi c e esta b lish m e n t
the greater part of
whose selling or serv­
icing is in intrastate
commerce;
seamen,
employees of transport
aviation companies,
persons engaged in
fishing industry or
agriculture; employees
of certain newspapers;
streetcar a n d local
bus-line employees;
persons engaged in
canning or otherwise
handling agricultural,
horticultural, or dairy
products in area of
production; certain
switchboard op­
erators.

(Supp. V to U.
S. Code 1934,
Title 29, secs.
201-219. (Fair
Labor Stand­
ards Act of
1938.))


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Federal Reserve Bank of St. Louis

All occupations or
industries
in
which persons
engaged in in­
terstate
com­
merce or the
production of
goods for com­
merce are em­
ployed.

Administrator of
Wage and Hour
Division in U. S.
Department of
Labor.

Labor Laws and Court Decisions

909

Laws in Effect in January 1940—-C ontinued
FEDERAL LEGISLATION
Method of select­
ing occupations
or industry to
be
considered
by this body

M ethod of arriving at wage awards

At the discretion of
the Administra­
tor, who consid­
ers, among other
things, the avail­
ability of wage
data and the
amount of Gov­
ernment busi­
ness.

The Secretary of Labor determines the
prevailing minimum wages for an in­
dustry or group of industries. Deter­
minations are preceded by a wage sur­
vey and public hearing before the
Public Contracts Board. After hear­
ing, and upon all matters of record, the
Board makes findings and recom­
mends a prevailing minimum wage.
The determination of the Secretary is
based upon the wage data, the public
record, and the findings and recom­
mendations of the Board. Minimum
wages as determined do not apply ret­
roactively to bids invited or contracts
awarded prior to the effective date.

Occupations fixed
by statute, but
industry com­
mittees may be
appointed at dis­
cretion of Ad­
ministrator for
particular in ­
dustries.

Present minimum wage fixed by law as
follows: Until Oct. 24, 1945, 30 cents
an hour; thereafter 40 cents an hour
or at a rate (not less than 30 cents an
hour) prescribed by a wage order of
the Administrator. In addition, Ad­
ministrator is required to establish an
industry committee for each industry
engaged in interstate commerce or
production of goods for commerce.
Each committee must include a num­
ber of disinterested persons represent­
ing public, and a like number of em­
ployers and employees. Committee
is required to investigate and recom­
mend a wage, not in excess of 40 cents
an hour, which Administrator may ac­
cept or reject. Administrator may
prescribe lower minima for learners,
apprentices, and messengers, and for
persons whose earning capacity is im ­
paired by age or physical or mental
deficiency.


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Federal Reserve Bank of St. Louis

Means provided for
securing enforce­
ment of award

P r in c ip le s
by
which
amount
of award is de­
termined

Contractor failing to
pay established
minimum is liable
to the United
States in a sum
equal to such un­
d e r p a y m e n t of
wages. This sum
may be withheld
from amounts due
the contractor or
recovered in suits
brought by the
Attorney General,
and by formal
and informal pro­
c ee d in g s in s t i­
tuted by the D e­
partment of Labor.
Such sums with­
held or recovered
are deposited in a
special deposit ac­
count and paid to
e m p lo y e e s a f­
fected. In addi­
tion, contract may
be canceled, and,
unless Secretary
of Labor recom­
mends otherwise,
no contracts may
be awarded to the
contractor for 3
years.
Violation of act is
punishable by a
fine of not more
than $10,000 for
first offense; and
by a fine or im ­
prisonm ent, for
not more than 6
months, or both,
for subsequent of­
fenses. Violations
of act may also be
e n jo in e d . E m ­
ployees may sue
employers failing
to pay required
wage for double
the amount due.

P revailin g m in i­
mum wages for
p erso n s
em ­
ployed on similar
work or the par­
ticular or similar
industries opera­
ting in locality in
which materials
are to be manu­
factured or fur­
nished.

Highest minimum
wage rate which
will not substan­
tially curtail em­
ployment or give
a competitive ad­
vantage to any
group.

Industrial Hygiene and Safety

HEALTH AND SAFETY RECOMMENDATIONS OF NEW
SOUTH WALES COAL COMMISSION
IMPROVED standards were recommended in the recent report of
the Royal Commission appointed to inquire into the safety and health
of workers in coal mines in New South Wales, Australia.1 Changes in
the tenure of the mine-union officials and a reduction in absenteeism
were suggested. Recognizing that immediate installation of all the
necessary new devices to protect employees would prove exceedingly
costly to mine owners, the commission also specified the rate at which
the changes might be made, in terms of cost per ton of output and of
number of months to be allowed for improving the equipment.
The commission regrets that the Miners’ Federation cannot see its
way to lengthen the term of office of its officials. Elections are held
annually and the commission is of the opinion that if the officers
served for a longer period it would be possible to work out a greater
degree of cooperation with the management. 1‘Constantly recurring
elections have a disturbing effect, prevent the carrying out of a settled
policy, and tend to leave the whole industry in a state of nervous
irritation,” it is stated. This system is regarded by the commission
as responsible for a number of mine stoppages which are beneficial
neither to employers nor to workers. Absenteeism is linked to the
same cause.
Men absent from work represented 25 percent of the employees in
1 week in January 1938. For the year as a whole the percentage was
15.4. Although the figures cover absences for all causes, including
illness and injuries, the commission concludes that there is abuse.
For example, before holidays, such as Christmas and Easter, absentee­
ism decreases to 8 or 10 percent but rises steeply immediately after­
wards. As an alternative to the adoption of suitable disciplinary
sanctions by the miners’ organization, the commission believes that a
tribunal is necessary to provide for the right to “hire and fire” subject
to proper safeguards.
i N ew South Wales. Legislative Assembly. Report of the Royal Commission Appointed to Inquire
Into and Report Upon the Safety and Health of Workers in Coal Mines, Together with Appendixes
and Schedules. Sydney, 1939.

910


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Federal Reserve Bank of St. Louis

Industrial Hygiene and Safety

911

Disputes in the coal industry have recently been reviewed by the
State arbitration court, the Federal Arbitration Court, and a Royal
Commission, involving expense and an element of disturbance that is
inimical to success in any industry. Therefore, the commission
questions whether it might not be more advantageous for all parties
concerned if the coal industry throughout Australia were brought
under the control of the Federal Arbitration Court.
Substitution of safety lamps for naked lights, where the latter are
still in use, should be completed within 1 year. This period would be
sufficient, the report states, to install the lamps, charging equipment,
housing, and other requisites. The estimated cost is placed at 1.26d.
per ton of output for the year.
Reduction of gross dust concentrations should be effected within 6
months where the facilities are available. Where extra ventilation
equipment is needed, an extension of time up to at least 18 months
should be granted by the chief inspector of mines. The maximum
expenditure is fixed at 1.8d. per ton of output on this work in con­
tinuous operations.

Certain roads will require complete retreatment to fulfill the require­
ments governing incombustible dust in road dust. The time limit
for this work is placed at 12 months and the cost at 1.2d. per ton of
output.
The total cost for all of the foregoing work should not exceed 4d.
per ton of output, excluding the cost of maintaining the safety lamps
and reducing the dust hazards. All of the necessary work should be
carried on concurrently and continuously.
No operator should be required to install transportation equipment
if the maximum expenditure is being made for lamps and dust control.
When transport installations are made, the maximum expenditure is
not to exceed 3d. per ton of output.

Provision is also made for allocating surplus funds to any one of the
necessary installations, if the mine meets the standards established
with respect to another.

217 5 9 3 — 40-------9


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Federal Reserve Bank of St. Louis

Cost and Standards o f Living

CHANGES IN COST OF LIVING IN THE UNITED
STATES, DECEMBER 15, 1939, AND YEAR 1939
LIVING costs for families of wage earners and lower-salaried workers
in the 32 large cities of the United States surveyed by the Bureau of
Labor Statistics fell by six-tenths of 1 percent between September 15
and December 15, 1939.
Although clothing, fuel and light, and housefurnishing goods were
higher in cost on December 15 than on September 15, lowered food
costs at the end of the quarter more than offset the increase in the
cost of other groups of items. Rents remained at approximately the
same level as at the beginning of the quarter.
The Bureau of Labor Statistics’ index of the cost of all goods
purchased by wage earners and lower-salaried workers in 32 cities,
based on costs in 1923-25 as 100, was 82.2 on December 15, as com­
pared with 82.7 on September 15. Living costs in these cities averaged
0.7 percent less than in December 1938.
Costs declined in 29 of the 32 cities. These declines were small,
exceeding 1.5 percent in only one city, Washington, D. C., where a
net drop of 1.6 percent was reported. In 3 cities slight increases
occurred; the largest (0.5 percent) was reported in Minneapolis.
Food costs were 2.8 percent lower, on the average, on December 15
than on September 15, due in large part to declines in the price of
meats and of sugar. At the end of the quarter, food costs were lower
in 31 and higher in only 1 of the 32 cities for which indexes of total
living costs are available. Of the 31 cities reporting net declines, 4
showed costs at the end of the quarter lower by 5 percent or more.
Washington, D. C., reported the greatest relative drop, 5.5 percent,
while Seattle and Boston reported a decline of 5.1 percent and Kansas
City 5.0 percent. Minneapolis showed a rise of 0.6 percent.
912


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Federal Reserve Bank of St. Louis

Cost and Standards of Living

913

Clothing costs rose in each of the cities surveyed, resulting in an
average advance of 0.9 percent for the 32 cities combined. The
largest increases, 1.6 percent in Detroit and 1.5 percent in Philadel­
phia, were mainly due to the higher cost of shoes, silk hose, and
cotton items.
Rents remained at approximately the same level. Small declines,
none more than 0.5 percent, were reported for 19 cities. Of the 13
cities reporting increased rental costs, only one (Mobile) showed a
rise of as much as 1 percent (1.3 percent).
Fuel and light costs rose, as is usual during the fall quarter. The
average rise was 1.3 percent, resulting from increases in 25 cities,
declines in 5. No change was reported in 2 cities. Of the cities
reporting increased fuel and light costs, only 2 reported advances
of as much as 3.0 percent. These 2, Portland, Maine, and Boston,
both in the New England area, showed increased costs amounting to
3.9 and 3.8 percent, respectively. In Portland, the rise was due to
increased prices of fuel oil and coke; in Boston, to higher cost of fuel
oil and of gas. Of the 5 cities reporting declines, only 2 showed a drop
of as much as 1 percent (Birmingham and Baltimore, 1.3 and 1.0
percent, respectively), each due to cuts in electricity rates.
Housefurnishing goods increased in cost in all but 1 of the 32 cities.
The net rise was 1.4 percent. Only Washington, D. C., reported an
advance of more than 3 percent (3.2 percent). Every city reported
higher prices for textile furnishings and furniture. In Birmingham,
where a negligible decline occurred, lowered prices for electrical goods
offset the rise in other items.
Miscellaneous goods and services changed only slightly in cost,
resulting in a net decline for the 32 cities combined of 0.3 percent.
Twenty-eight cities reported declines, and 4 showed increases.
Percentage changes in the cost of goods purchased by wage earners
and lower-salaried workers from September 15, 1939, to December 15,
1939, are shown in table 1 for 32 large cities of the United States, by
erouns of items.


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Federal Reserve Bank of St. Louis

COST OF GOODS PURCHASED BY WAGE EARNERS
AND LO W ER-SALARIED WORKERS
AVERAGE FOR ALL ITEMS - 32 CITIES
1923 ” 25 s IOO

INDEX

INDEX

Monthly Labor Review—April 1940

UNITED

STATES


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Federal Reserve Bank of St. Louis

BUREAU

OF LABOR STATISTICS

915

Cost and Standards of Living

T able 1.—Percentage Change From September 15, 1939, to December 15,1939, in Cost of
Goods Purchased by Wage Earners and Lower-Salaried Workers

C ity

A ll item s

Average: 32 large cities________
N ew England:
B o ston ____________________
P ortland, M a in e ............ .......
M idd le A tlantic:
B u ffalo___________________
N ew York___ ______ . . . .
P h ilad elp h ia____________
P ittsb u rgh _____ _____
Scranton__________________
E a st N orth Central:
C hicago_____________ ___
C in cin n ati________ ______
C levelan d _________________
D e tr o it. _________________

Indianapolis_____________
West North Central:
Kansas C ity . ______
Minneapolis ___________
St. Louis______ ________
South Atlantic:
A tlanta__________________
Baltimore____ _________
Jacksonville______________
Norfolk_____ ___________
Richmond________ ____ _
Savannah. . _____ _____
Washington, D. C ______
East South Central:
Birmingham____ _______
Memphis ______ __ _____
M obile___ ______________
West South Central:
Houston___________ . . . _
N ew Orleans._______ _ . .
Mountain: Denver _________
Pacific:
Los Angeles______________
Portland, Oreg___________
San Francisco____________
Seattle__________________

Food

C lothing

R en t

F u el and Housefurnishing
light
goods

M iscel­
laneous

-0 .6

1 - 2 .8

+ 0 .9

(2)

+ 1 .3

+ 1 .4

- 1 .2
-1 .0

-5 .1
-4 .4

+ 1 .4
+ .7

(3)

+ 3 .8
+ 3 .9

+ 1 .9
+ 1 .3

- .8

- 4 .8
- 2 .8
- 2 .6
- 3 .1
- 3 .1

+ .9
+ .9
+ 1 .5
+ .9
+ .4

+ 2 .7
+ .7
+ .4
+ .2
+ .3

+ 2 .3
+ 1 .0
+ 2 .8
+ .9
+ 2 .4

-.1
-2 .3
-1 .0
- 1 .5

+ .6

+ 2 .3
+ 1 .3
+ .7

+ .1
+ 1 .7
+ 2 .2

- .3
- .2
- .2

+ 1.4
+ 2 .0

+ 1 .5
+ 2 .0

- .1
-.2

-.7
- .5
- .7
- .8
+ .1

-.6
(2)
(3)
-.4

+ .5
+ 1 .0

-0 .1
-.1
- .1

(2)
(3)

-.1

+ .1
- .3

- 0 .3

-. 1
(2)
+ .3

+■ 1
- .2

(*)

+ .2

- 2 .8

+ 1 .6
+ .9

(2)
(3)
+ .6

- 1 .5
+ .5
- 1 .1

- 5 .0
+ .6
- 3 .3

+ .9
+ 1 .4
+ 1 .0

-.3
+ .1
-.2

(2)
+ .7
+ .9

+ 1 .5
+ 2 .4
+ .2

-.4
-.2
-.8

-1 .0
-1 .2
-.5
-.5
-1 .2
-.6
- 1 .6

-3 .9
-3 .8
-3 .0
-3 .3
-4 .6
-4 .2
- 5 .5

+ .6
+ 1 .0
+ .7
+ 1 .1
+ .8
+ 1 .0
+ .8

(3)
-.1
+ .6
(2)
(2)
+ .2
-.1

+ 2 .6
- 1 .0
+ .9
+ .3
+ .3
+ .6
+ 1 .7

+ .5
+ 1 .4
+ 2 .8
+ 1.1
+ 1 .3
+ 1 .2
+ 3 .2

-.6
-.3
-.3
-.2
-. 1
+ .6
- .2

-.9
- 1 .3
- 1 .1

-3 .3
- 4 .9
-4 .2

+ 1 .2
+ .7
+ .9

-.1
(2)
+ 1 .3

- 1 .3
-.4
-.1

(2)
+ .9
+ 1.1

- .2
- .4
- .5

-.4
-1 .3
- .2

- 2 .2
- 3 .4
- 1 .2

+ 1 .4
+ 1.1
+ .9

-.4
+ .4
+ .1

+ .1
+ 1 .2
+ .1

+ 2 .0
+ •7
+ 1 .6

- .1
-1 .6
- .1

-.5
-.9
-.6
- 1 .1

- 2 .0
- 3 .4
- 2 .5
-5 .1

+ 1 .1
+ .7
+ .6
+ .9

-.5
-.4
+ .2
(2)

(<)
W
+ .1
+ .6

+ 1 .3
+ 1 .8
+ 1.3
+ 1.7

- .3
- .3
- .1
-.2

1 Includes 51 cities.
2 Decrease of less than 0.05 percent.
3 Increase of less than 0.05 percent.
1 N o change.

Percentage changes in the cost of goods purchased by wage earners
and lower-salaried workers from a peak point in June 1920, from
December 1929, from the low point June 1933, and from December 15,
1938, to December 15, 1939, in 32 cities, are presented in table 2.


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Federal Reserve Bank of St. Louis

916
a b l e

Monthly Labor Review—April 1940
2 .—Percentage Change in Cost of A ll Goods Purchased by Wage Earners and

Lower-Salaried Wrorkers for Specified Periods
Percentage change from—
City

June 1920 December Juue 1933 Dec.15,1938,
to Dec. 15, to Dec. 15,
1929 to
to Dec. 15,
1939
1939
Dec. 15,1939
1939

New England:
Portland, M aine. .
M iddle Atlantic:

...

________ . . ________

East North Central:

West North Central:

South Atlantic:

East South Central:

West South Central:

Pacific:

-3 2 .2

-1 7 .5

+10.3

- 0 .7

-3 3 .0
-3 3 .0

-1 9 .5
-1 6 .2

+ 6 .6
+ 7.1

-.8
+ .2

-3 1 .0
-2 8 .6
-3 1 .4
-3 2 .7
-3 3 .5

-1 7 .8
-1 6 .8
-1 8 .4
-1 9 .1
-2 0 .4

+ 9 .1
+ 8 .1
+ 8 .8
+10.7
+ 6 .7

- 1 .3
-.4
-.5
- 1 .6

-3 2 .7
-3 2 .3
-2 8 .8
-3 7 .9
-3 6 .4

-2 1 .0
-1 8 .6
-1 2 .3
-1 8 .7
-1 7 .6

+11.4
+ 8.6
+14.2
+19.9
+11.1

-3 7 .7
-3 1 .0
-3 3 .6

-1 5 .6
-1 4 .6
-1 8 .5

+ 7 .9
+13.2
+10.2

-.6
+ .3
- .1

-3 9 .6
-2 9 .4
-3 5 .9
-3 5 .4
-3 4 .5
-3 7 .5
-2 9 .8

-1 8 .9
-1 5 .2
-1 7 .1
-1 6 .0
-1 6 .4
-1 8 .1
-1 3 .0

+10.8
+ 9 .7
+11.8
+11.3
+ 9 .0
+ 8 .5
+10.2

-1 .6
-1 .1

-4 0 .1
-3 4 .8
-3 5 .6

-2 1 .0
-1 6 .6
-1 9 .2

+13.0
+10.2
+ 9 .7

-3 3 .2
-2 8 .7
-3 4 .4

-1 6 .3
-1 5 .4
-1 5 .0

+15.2
+11.0
+10.3

-3 0 .0
-3 5 .1
-2 5 .9
-3 0 .9

-1 7 .4
-1 3 .6
-1 2 .6
-1 2 .8

+11.3
+13.9
+11.6
+ U .2

- .5

- .7
- .9
(')

- 1 .4
- .4

+. 6
(2)

-.9
+ .2
-.8
- 1 .1
- .5

-.2
+. 3
(2>

- .8

-1 .5
-.7
-.7
-. 1

1 D ecrease of less th an 0.05 percent.
Increase of less th an 0.05 percent.

i

Indexes on 1923—25 Base
Indexes of the average cost of all goods purchased by families of
wage earners and lower-salaried workers are constructed for each of
the 32 cities surveyed and for these cities combined, using an average
of the years 1923-25 as the base.1 These indexes, from 1913 through
December 15, 1939, for the 32 cities combined, are shown in table 3.
The accompanying chart presents these data in graphic form from
March 1923 through December 15, 1939.
i Indexes of food costs based on costs in 1923-25 as 100 are com puted m o n th ly for 51 cities (including th e
32 cities in this report). Percentage changes from m on th to m on th are calculated for 4 additional cities.
T hese data w ill be sen t upon request.


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Federal Reserve Bank of St. Louis

COST OF GOODS PURCHASED BY WAGE EARNERS
AND LOW ER-SALARIED WORKERS
AVERAGE OF 32 LARGE CITIES

Cost and Standards of Living

UNITED STATES BUREAU


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Federal Reserve Bank of St. Louis

OF LABOR

STATISTICS

918

Monthly Labor Review—April 1940

T able 3.— Indexes of Cost of Goods Purchased by Wage Earners and Loiver-Salaried
Workers in 32 Large Cities Combined, 1913 Through Deccember 15, 1939
[Average 1923-25=100)

Miscel­
laneous

Food 1

Clothing

1913—Average______
- ...
1914—December____ _________
1915—December. . __________
1916—D ecem b er_____________
1917—December______________
1918—December
__________

57.4
58.9
60.1
66.9
79.4
95.8

63.1
66.3
66.3
79.5
99.1
118.2

55.7
56.3
58.3
66.9
83.1
118.9

61.4
61.4
62.3
62.8
61.5
64.7

53.9
54.5
54.5
58.5
66.9
78.7

47.7
49.6
52.8
61.0
71.8
97.8

50.1
51.6
53.9
56.8
70.4
81.9

1919—June__________________
December_____________
1920—June__________________
D ecem ber... _____ ____
1921—M ay__________________
September_____________
December_____________

98.2
109.8
121. 2
112.2
102. 8
101. 7
100.3

117.3
126.4
146.1
115.7
95.8
102.1
99.7

128.8
159.5
168.6
151.0
129.8
112.2
107.2

67.3
73.1
79.4
87.5
92.7
93.3
94.8

77.8
82.6
91.3
103.7
98.4
98.2
99.1

104.0
123.0
137.0
132.8
114.3
103.2
100.4

84.3
92.9
99.2
103.2
103.2
102.5
102.0

1922—March_________________
June__________________
September_____________
D e c e m b e r ...__________

96.8
97.0
96.4
97.7

93.5
95.6
93.3
96.7

102.4
100.4
99.3
99.4

94.6
95.0
95.2
95.8

96.3
95.9
100.9
102.2

95.0
93.2
93.4
96.3

100.4
99.5
99.2
98.9

1923—March_________________
June___________________
September_____________
December_____________

97.6
98.7
99.9
100.2

94.6
97.7
100.0
99.5

100.8
101.1
101.9
101.8

96.3
97.3
98.2
99.7

101.5
98.7
99.8
101.1

100.7
102.8
102.9
102.9

99.0
99.1
99.6
100.0

1924—March_________________
June______________ ____
September____ _________
December__________ . . .
1925—June__________________
December_________ ____

99.0
98.9
99.2
100.0
101.4
104.0

95.9
95.9
97.3
99.5
104.2
111.1

101.5
100.6
99.5
98.9
98.5
97.9

100.2
101.3
101.4
101.7
101.4
101.3

99.9
97.6
98.9
99.5
97.9
105.8

102.1
99.4
98.6
99.1
97.9
97.8

99.7
99.8
99.8
100.2
100.8
101.1

1926—June__________________
December_____________
1927—June__________________
December_____________
1928—June____________ _____
December______________

102.5
102.3
101.9
100.4
99.2
99.4

108.9
108.1
108.7
104.7
102.5
103.2

97.1
96.2
95.3
94.0
93.8
93.3

100.4
100.0
99.0
97.9
96.5
95.5

100.0
103.4
99.4
100.6
97.7
99.7

95.8
94.7
93.4
93.0
91.1
90.5

101.0
101.4
101.7
102.1
102.1
102.8

1929—June_______ _________
.. ..
December_____
1930—June__________________
December___ ________
1931—June______ _______
December_____________

99.1
99.6
97.7
93.8
88.3
85.1

103. 7
105.7
101.2
92.1
80.6
76.2

92.8
92.2
91.5
88.1
83.4
77.6

94.3
93.3
92.0
90.1
87.3
83.9

97.0
99.1
95.9
98.1
93.7
95.3

90.2
89.9
88.8
85.1
79.3
74.9

103.0
103.4
103.7
103.4
102.8
101.8

1932—June_____ ____ ______
December______________
1933—June__________________
December__ ________
1934—June__________________
November 15_______ . .

79.7
76.6
74.5
77.2
78.4
79.1

67.6
64.7
64.9
69.6
73.4
75.3

73.5
69.5
68.4
76.2
77.9
77.8

78.5
72.7
66.8
63.9
62.7
62.7

88.8
89.8
84.9
90.0
87.7
89.0

68.4
65.6
65.8
73.5
75.0
75.5

100.4
98.8
96.4
96.8
96.6
96.7

1935—March 15______________
July 15____________ ___
October 15________. . . ..

80.6
80.4
80.7

79.8
80.2
80.2

78.0
77.8
78.0

62.6
62.7
63.3

89.3
84.9
87.7

76.0
76.2
77.0

96.8
96.7
96.6

1936—January 15_____________
April 1 5 _______________
July 15________________
September 15___________
December 15_______ . . .

81.3
80.6
82.0
82.4
82.4

81.6
79.4
84.0
84.3
82.9

78.3
78.6
78.4
78.6
79.6

63.5
63.7
64.2
64.6
65.4

88.3
88.0
86.1
87.4
87.8

77.0
77.3
77.5
78.2
79.2

96.6
96.5
96.4
96.5
96.8

1937—March 15______________
June 15____ ___________
September 15___________
December 15...........
..

83.8
84.5
85.0
84.5

85.4
86.3
85.8
82.6

80.9
82.1
84.0
84.0

65.9
67.5
68.1
69.3

88.1
84.9
86.0
87.3

83.1
85.1
86.7
87.5

97.3
97.7
98.1
98.6

1938—March 15______________
June 15________________
September 15___________
December 15___________

83.0
83.3
82.7
82.7

78.6
80.2
78.7
78.6

82.8
82.3
81.7
81.5

69.4
69.7
69.6
69.6

88.0
85.5
86.8
88.0

85.4
84.6
83.4
83.3

98.5
98.7
98.6
98.6

1939—March 15______ ____ — June 15________________
September 15.....................
December 15___________

82.0
81.7
82.7
82.2

76.4
76.3
79.0
76.9

81.1
80.9
81.0
81.7

69.6
69.5
69.5
69.5

88.4
85.4
86.1
87.2

83.2
83.2
83.5
84.6

98.5
98.5
98.7
98.4

i Covers 51 cities since June 1920.


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Federal Reserve Bank of St. Louis

Rent

HouseFuel and furnish­
light
ing goods

All items

Date

Cost and Standards of Living

919

The indexes of the cost of goods purchased by wage earners and
lower-salaried workers prepared by the Bureau of Labor Statistics
show relative costs as of particular dates. For various purposes,
however, it is often necessary to have estimates of annual average
indexes. These estimates are, therefore, presented in table 4, for 32
cities combined, from 1913 through 1939. The annual average in­
dexes have been computed as follows: The annual average food
index is an average of the indexes (monthly, most years) falling within
each year; the annual average indexes for clothing, rent, fuel and light,
housefurnishing goods, and miscellaneous items are indexes of the
weighted average of the aggregates for each pricing period affecting
the year, the weights representing the relative importance of each
pricing period. When these goods were priced only twice a year, in
June and again in December, it is evident that prices in December of
the previous year were more indicative of prices in the next month,
January, even though it fell in a new year, than were the prices of the
succeeding June. Therefore, costs in December of the preceding year
and in June and December of the given year are all considered in
arriving at an average cost for the year. The relative importance of
each of these costs is expressed for December of the previous year by
2%, for June of the given year by 6, and for December of the given
year by 3
Weights for years in which pricing was done at other
intervals will be furnished on request.
T able 4.—Estimated 1 Annual Average Indexes of Cost of Goods Purchased by Wage
Earners and Lower-Salaried Workers in 32 Large Cities Combined, 1913 Through 1939
_________________________________________ [Average 1923-25=100]

Year

HouseFuel and 1 furnish­
light
ing goods

M iscel­
laneous

All items

Food 2

Clothing

57.4
58.2
58.8
63.2
74.4

63.1
64.6
63.9
71.7
92.4

55.7
56.1
57.4
62.9
75.6

61.4
61.4
61.9
62.6
62.1

53.9
54.3
54.5
56.6
63.0

47.7
49.0
51.3
57.2
66.9

50.1
51 2
52.8
55.5
64.2

1918____________
1919
1920....................
1921________ _
1922________

87.2
101.1
116.2
103.6
97.2

106.2
120.2
133.1
101.6
95.0

102.5
135.7
161.6
124.4
101.0

63.2
68.4
80.4
92.4
95.1

73.3
79.4
93.1
99.3
98.6

85.9
108.2
132.8
111.8
94.8

76. 7
86.3
99.1
102.8
99.7

1923__________
1924__________
1925_______ __
1926_________ ________ _
1927_________ ____ ______

99.0
99.2
101.8
102.6
100.6

97.9
96.9
105.0
108.5
104.5

101.2
100.4
98.4
97.0
95.1

97.5
101.0
101.5
100.5
98.9

100.3
99.1
100.6
102.2
100.6

101.8
100.1
98.1
95.9
93.6

99. 3
99.9
100.8
101.1
101.7

1928______________
1929____________
1930_________________
1931_____ ___________
1932_________________

99.5
99.5
97.0
88.6
79.8

103.3
104.7
99.6
82.0
68.3

93.7
92.7
90.7
82.7
73.2

96.5
94.3
91.7
86.9
78.0

98.9
98.2
97.2
95.1
90.4

91.3
90.2
87.9
79.2
68.9

102.3
103.1
103.5
102.7
100.2

1933___________________
_
1934______________
1935____ ______ __ _____
1936_________________________
1937__________

75.8
78.6
80.7
81.6
84.3

66.4
74.1
80.5
82.1
85.1

70.9
77.5
77.9
78.7
82.4

67.2
62.9
62.9
64.2
67.4

88.6

87.4

87.5
87.5
86.6

68.0
74.9
76.4
77.8
84.9

97.0
96.7
96.7
96. 5
97.8

1938_____________________
1939 3________________

83.0
82.2

78.9
77.3

82.3
81.1

69.5
69.5

87.0
86.8

84.5
83.5

98. 6
98.5

1913_______________
_
I9l4__ _ . .
_____
1915._ ........ . .....
1916____________
1917_____ _____

1 For explanation of m ethod u sed, see above.


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Federal Reserve Bank of St. Louis

Rent

2 Covers 51 cities since June 1920.

» Prelim inary.

920

Monthly Labor Review—April 1940

Table 5 presents indexes of the cost of goods purchased by wage
earners and lower-salaried workers in each of 32 cities (arranged alpha­
betically) , using average costs in 1923-25 as 100. These indexes are
presented by groups of items for quarterly periods in 1939 in each
city. This table supplements tables 6 through 37 in the December 15,
1937, pamphlet, in which indexes were published for all pricing dates
since the initiation of the index through December 15, 1937, and table
5 in the December 15, 1938, issue of Changes in Cost of Living
(Serial No. R. 885), in which these indexes were published for pricing
dates in 1938. Mimeographed tables of indexes for individual cities
are available upon request.
T able 5.—Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried
Workers, at Quarterly Periods in 1939
[Average 1923-25=100]

C ity and date

Atlanta, Ga.:
Mar. 15___ ______
June 15_______ _ . .
Sept. 15__________________
Dec. 15_________ __
Baltimore, Md.:
Mar. 15___ ___
June 15________________ _
Sept. 15________ _____
Dec. 15_____________
Birmingham, Ala.:
Mar. 15_____________
June 15______________
Sept. 15__________ _____
Déc. 15______________ .
Boston, Mass.:
Mar. 15______________
June 15_____________ . .
Sept. 15____________
Dec. 15____ ________
Buffalo, N . Y.:
Mar. 1 5 _________________
June 15________________
Sept. 15______________
Dec. 15___________
Chicago, 111.:
Mar. 15_______________
June 1 5 ____________
Sept. 15__________
Déc. 15._____ _______
Cincinnati, Ohio:
Mar. 15___ _________
June 15___ ____
Sept. 15________
Dec. 15______________
Cleveland, Ohio:
Mar. 15__________ _
June 15____ ____ .
Sept. 15____________
Déc. 15....... ........
D enver, Colo.:
Mar. 15_________ ____
June 15__________
Sept. 15, _________ ____
Dec. 15________________
D etroit, Mich.:
Mar. 15__________________
June 15__________________
Sept. 15_________________
Déc. 15... ...... ...
Corrected figure.


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Federal Reserve Bank of St. Louis

All
items

Food

Clothing

Rent

Fuel
and
light

Housefurnish­
ing goods

Miscel­
laneous

79.3
78.9
79.9
79.1

70.5
70.7
73.1
70.2

83.5
83.3
83.3
83.8

65.3
65.2
64.8
64.8

73.7
68.2
71.6
73.5

89.1
88.9
89.0
89.5

95.1
94.9
94.9
94.3

85.7
85.5
86.3
85.3

81.6
82.0
84.0
80.8

82.0
81.8
81.8
82.6

76.2
76.1
76.1
76.1

83.7
79.1
80.5
79.7

82.6
83.1
83.7
84.9

103.8
103.8
103.8
103.5

76.5
75.7
76.7
76.0

65.7
65.0
68.0
65.7

86.7
86.6
86.4
87.4

59.5
59.4
59.5
59.4

82.9
73.4
73.8
72.8

81.4
81.3
81.5
81.4

93.9
93.9
93.9
93.7

81.6
81.5
82.7
81.7

73.1
73.1
75.9
72.0

85.2
85.2
85.0
86.2

75.3
75.2
75.3
75.3

87.5
84.4
86.2
89.4

81.3
81.5
81.5
83.0

98.1
98.1
98.6
98.5

84.1
83.7
84.2
83.5

76.8
77.5
78.7
74.9

80.5
80.3
80.1
80.9

73.6
73.4
73.3
73.3

97.8
95.8
95.8
98.4

90.9
90.3
89.5
91.6

99.3
97.8
98.8
99.0

78.5
78.2
78.7
78.8

76.3
77.1
78.4
78.3

74.2
74.2
74.0
74.4

60.8
60.5
60.3
60.3

96.0
89.1
90.1
92.2

74.2
74.3
75.0
75.1

99.8
99.8
99.8
99.6

84.8
84.5
85.5
85.0

76.0
75.4
77.9
76.1

80.6
80.6
81.0
81.4

76.6
76.5
76.4
76.1

94.4
93.4
95.8
97.0

94.0
93.1
93.5
95.1

101.0
101.2
101.2
101.0

85.9
85.7
85.8
85.8

78.9
78.4
79.0
78.2

84.4
84.0
84.2
85.0

68.9
69.0
69.1
69.1

113.0
112.2
112. 6
113.4

79.2
79.6
79.3
81.0

104.2
104.2
103.6
103.4

82.4
82.3
82.3
82.1

81.2
82.3
» 81.6
80.6

77.8
77.8
77.9
78.6

64.4
64.4
64.5
64.6

76.4
75.2
74.5
74.5

88.7
89.0
90.4

88.8

99.6
98.2
98.9
98.8

79.3
78.9
78.7
78.7

75.2
74.1
75.0
73.9

81.9
82.0
80.7
82.0

66.6

79.3
77.5
77.5
78.6

82.3
82.7
81.8
83.0

95.1
95.3
94.5
94.4

66.4
66.2
66.3

Cost and Standards of Living

921

T able 5.— Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried

Workers, at Quarterly Periods in 1939— C on tin u ed
[Average 1923-25=100]
All
items

City and date

Houston, Tex.:
Mar. 15....................................
June 15________ ____ _____
Sept. 15........ ...........................
Dec. 15_________ ____ _ . . .
Indianapolis, Ind.:
Mar. 15........................ . . . .
June 15............. .....................
Sept. 15.......... .........................
Dec. 15......... ...........................
Jacksonville, Fla.:
Mar. 15______
. . . _____
June 15___ . . . . . .
.. .
Sept. 15____________ _____
Dec. 15_______ ________
Kansas City, Mo.:
Mar. 15........
. . . . ___
June 15____
. . . ___
Sept. 15_____
________
Dec. 15____
_______
Los Angeles, Calif.:
________
Mar. 1 5 ...
June 15........................... . ..
Sept. 15___
________
. Dec. 15____
________
Memphis, Tenn.:
Mar. 1 5 ................... ..............
. _____
June 15__
.......... ...........
Sept. 15........
Dec. 15.. .
Minneapolis, Minn.:
Mar. 15. .
______
June 15__
_______
Sept. 1 5 ...
______
Dec. 15..
______
Mobile, Ala.:
Mar. 15____
________
June 15__________________
Sept. 1 5 ..................... ............
Dec. 15__
_______
N ew Orleans, La.:
Mar. 1 5 ...
............... .
June 15________ __________
Sept. 15____
________
Dec. 15. _
______
N ew York, N . Y.:
Mar. 15___ ____________
June 15......... ... ........................
Sept. 15_________ _____ _
Déc. 15......
........ .........
Norfolk, Va.:
Mar. 15______
________
________
June 15______
Sept. 15.. ____ ________
Dec. 15_____
_________
Philadelphia, Pa.:
Mar. 1 5 . . ______________
June 15______ . ________
Sept. 15_________________
Déc. 15____ . __________
Pittsburgh, Pa.:
Mar. 15...................................
June 15__ . . __________
Sept. 15_________________
Déc. 15____ _____ ________
Portland, Maine:
Mar. 15_________________
June 15..________________
Sept. 15__ _____ _______ _
Déc. 16____ _____________
Portland, Oreg.:
June 15___ ___________
Déc. 15_________ _______ _


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.

Food

Clothing

Rent

Fuel
and
light

Housefurnish­
ing goods

Miscel­
laneous

81.4
81.3
82.8
82.6

74.7
75.1
79.7
78.0

76.8
76.7
76.8
77.9

74.2
74.5
74.3
74.0

77.8
73.4
75.9
76.0

92.5
92.3
92.6
94.4

94.6
94.6
94.4
94.3

81.1
81.1
81.4
81.1

76.8
77.5
78.3
76.1

79.4
79.0
79.2
79.9

66.0
66.1
66.3
66.7

85.7
82.5
83.1
84.8

89.1
89.1
88.5
90.3

93.2
93.5
93.4
93.2

78.7
78.8
80.1
79. 7

73.7
74.3
79.1
76.7

80.6
80. 2
80.4
81.0

59.6
59.5
59.3
59.6

88.1
87.5
87.6
88.4

81.4
81.2
81.4
83.7

90.2
90.3
90.2
89.9

81.5
81.5
82.7
81.4

78.5
78.0
81.3
77.2

81.0
80.7
80.9
81.6

61.5
61.5
61.3
61.1

80.6
79.9
81.0
81.0

79.0
79.0
79.4
80.5

100.5
101.7
101.8
101.5

78.2
77.7
78.1
77.7

71.4
70.0
71.5
70.1

85.9
85.8
86.0
87.0

55.2
55.0
55.0
54.7

81.6
81.5
78.6
78.6

82.9
82.8
82.9
84.0

94.8
94.7
94.6
94.4

80.2
80.2
81.7
80.6

71.7
71.6
76.7
72.9

87.0
87.0
87.0
87.6

62.7
62.4
62.4
62.4

85.6
85.3
86.1
85.7

93.5
93.5
94.2
95.0

94.9
95.3
95.2
94.8

84.2
84.3
84.1
84.5

83. 2
84.5
83.5
84.0

79.1
79.1
79.1
80.2

72.2
72.3
72.3
72.4

90.7
88.7
88.6
89.2

87.8
88.4
88.5
90.6

96.6
96.1
96.2
96.0

82.2
82.2
83.0
82.1

73.4
74.2
76.2
72.9

88.5
88.5
88.4
89.2

67.5
67.4
67.4
68.3

71.1
68.9
70.2
70.1

89.0
88.8
89.0
90.0

98.0
97.9
98.0
97.6

83.4
83.3
84.8
83.6

82.2
81.7
86.1
83.3

80.5
80.5
80.2
81.1

73.4
73.6
73.8
74.1

74.6
73.4
72.9
73.8

93.7
93.4
93.8
94.4

92.7
93.0
93.1
91.6

83.7
83.0
85.0
84.4

78.9
77.4
83.1
80.9

78.9
78.6
78.6
79.3

77.7
77.8
77.9
77.8

87.3
84.3
84.4
85.0

77.3
77.3
78.3
79.1

99.7
99.6
100.1
100.2

83.7
83.6
84.9
84.5

73.5
73.8
77.8
75.3

87.4
87.5
87.6
88.5

64.8
64.8
64.8
64.8

81.6
79.5
80.6
80.8

85.5
85.2
86.1
87.1

104.0
104.0
104.2
104.0

81.2
81.3
81.9
81.5

77.9
78.3
80.3
78.2

76.3
76.1
76.2
77.4

69.3
69.3
69.4
69.4

82.1
78.7
79.6
80.0

79.9
81.4
81.8
84.1

97.2
97.6
97.2
97.0

80.6
81.0
81.6
81.0

72.7
74.1
76.0
73.7

80.8
80.7
80.7
81.4

70.5
70.6
70.5
70.6

101.0
100.6
100.9
101.2

83.7
82.7
83.0
83.8

95.9
95.9
96.0
95.9

83.3
83.8
85.0
84.2

74.8
76.3
78.8
75.3

82.3
82.4
82.1
82.8

76.5
76.3
76.7
76.7

79.2
79.2
81.2
84.4

89.8
89.8
90.6
91.7

103.0
103.0
103.6
103.6

82.7
82.8
83.5
82.8

78.4
79.1
81.2
78.5

81.5
81.4
81.4
82.0

61.8
61.6
61.8
61.5

83.8
82.7
83.5
83.5

85.2
84.9
85.2
86.7

99.8
100.1
100.1
99.7

922

Monthly Labor Review—April 1940

T able 5.— Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried

Workers, at Quarterly Periods in 1939— C on tin u ed
[Average 1923-25=100]

City and date

Richmond, Va.:
Mar. 15__________________
June 15__________________
Sept. 15_________________
Dec. 15_____________ . .
St. Louis, Mo.:
Mar. 15__________
____
June 15__________________
Sept. 15__________ ____
Dec. 15, ______________ _
San Francisco, Calif.:
Mar. 15_. .
______ .
June 15__________________
Sept. 15_________ . . . ___
Dec. 15__________ ______
Savannah, Ga.:
Mar. i s __________________
June 15_______________ -Sept. 15_________________
Dec. 15_ _
.
----Scranton, Pa.:
Mar. 15___________
..
June 15__________________
Sept. 15_________________
Dec. 15__________________
Seattle, Wash.:
Mar. 15___ _____ _______
June 15__________________
Sept. 15_________________
Dec. 15______ ______
Washington, D . C.:
Mar. 15_________ ______
June 15_________ _______
Sept. 15_________________
Dec. 15__________________

All
items

Food

Clothing

Rent

Fuel
and
light

Housefurnish­
ing goods

Miscel­
laneous

82.6
82.2
83.4
82.5

69.4
68.8
72.4
69.1

89.6
89.5
89.4
90.2

73.3
73.3
73.4
73.3

83.4
80.9
82.5
82.7

91.6
90.4
89.5
90.7

99.1
99.2
99.1
99.0

82.7
82. 2
83.8
82.8

82.0
80.8
84.6
81.8

82.1
82.0
82.3
83.1

58.2
58.1
58.1
58.0

88.5
83.7
87.1
87.9

90.3
90.1
90.4
90.7

101. 5
102.1
102.7
101.8

87.5
86.7
88. 2
87.7

79.5
78.2
82.9
80.8

92.2
92.0
92.2
92.8

73.8
73.9
74.0
74.1

78.9
78.9
77.3
77.4

89.3
88.8
89.1
90.3

106.4
105.1
105.1
105.0

79.9
80.2
81.5
81.0

74.5
75.6
80.8
77.4

83.9
83.6
S3. 6
84.4

64. 2
64.2
64. 2
64.3

83.0
82.7
81.0
81.5

86.4
87. 1
87. 7
88.8

91.4
91.4
91.4
92.0

80.6
80.4
81.5
80,9

73.1
73.5
76.7
74.3

83.0
82.9
82.7
83.1

72.1
71.7
71.3
71.3

76.3
72.4
73.0
73.2

85.6
85.5
85.7
87.8

96.4
96.4
95.4
96.6

86.8
87.1
87.8
86.9

78.1
78.6
81.8
77.6

88.9
89.0
89.0
89.8

70.9
70.9
70.7
70.7

97.6
95.8
94.4
95.0

91.6
90.1
90.6
92.1

101.0
101.8
101.8
101.7

85.9
86.0
87.4
86. 1

78.0
78.3
82.6
78.0

82.6
82.6
82.9
83.5

86.8
86.6
86.5
86.4

84.6
82. 2
81.8
83.3

89.5
89.7
90.0
92.8

99.7
99.9
99.8
99.6

Description of the Indexes
A summary discussion of the method of preparing these indexes and
of their uses in showing time-to-time changes in the cost of goods and
services purchased by wage earners and lower-salaried workers in each
of 32 large cities of the United States and in these cities combined
is presented in the December 1938 issue of this pamphlet and the
March and July 1938 issues of the Monthly Labor Review. In that
discussion, it is pointed out that the only comparison between cities
that can be drawn from the Bureau’s indexes is a comparison of the
extent of change in living costs in different cities over given periods.
Thus, the index of the cost of all items as of December 15, 1939, based
on costs in 1923-25 as 100, was 84.4 in New York and 77.7 in Los
Angeles. A comparison of these two indexes indicates that on
December 15, 1939, living costs in Los Angeles were 22.3 percent
lower than the average for the years 1923-25, but that in New York
costs on this date were only 15.6 percent lower. This comparison
does not indicate that costs on December 15, 1939, were 8.6 percent
higher in New York than in Los Angeles. In order to secure figures
showing a comparison of actual living costs between cities, expendi
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Cost and Standards of Living

923

tures serving as the weights for items priced in the different cities
would have to be representative of identical levels of living. Differ­
ences between the average costs from which the Bureau of Labor
Statistics indexes are computed in different cities are due to differences
in standards and in purchasing habits in those cities as well as to
varying prices for goods of given grades. Differences between the
indexes of costs from time to time in the various cities at any particular
date are due entirely to differences in the percentage of change in
living costs in each city.
The comparison of the cost of the same level of living from one part
of the country to another presents serious technical difficulties for
which wholly satisfactory techniques have not yet been developed.
This is particularly true in attempting to measure differences in living
costs from large to very small cities or from urban to rural communi­
ties, where consideration must be given not only to differences in such
factors as climate and consumption habits but also to differences in
housing, the fuels available, and the means of transportation.

ESTIMATED INTERCITY DIFFERENCES IN COST OF
LIVING, DECEMBER 15, 1939
IN March 1935, the Division of Social Research of the Works Progress
Administration conducted a study of comparative living costs in 59
cities. The purpose of this study was to determine the cost of a
uniform level of living in these cities at a given time, and how its cost
compared from one city to another. Quantity budgets were con­
structed by the Works Progress Administration to represent the needs
of families at two levels of living—the “basic maintenance” level,
and the “emergency” level. An identical budget for each of these
levels of living, with certain adjustments in the fuel, ice, and trans­
portation lists to take account of climatic and other local conditions,
was used in each city. The United States Bureau of Labor Statistics
cooperated with the Division of Social Research of the Works Progress
Administration in obtaining the prices necessary to compute the costs
of the two budgets. As far as possible, prices for identical commodi­
ties were obtained in each city.1
Between March 1935 and the spring of 1939, no attempt was made
to price these budgets. In order to bring the intercity comparison of
costs up to date, estimates of the cost of the “maintenance” budget
were made, however, for the 31 cities covered by both the Works
Progress Administration study and the Bureau of Labor Statistics’
studies of changes in the cost of goods purchased by wage earners and
1 Details of this study and a description of the goods and services included in each budget can be found in
Research Monograph XII: “Intercity Differences in Costs of Living in March 1935, 59 Cities,” which may
be obtained from the Division of Research, Work Projects Administration, Washington, D . C.


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924

Monthly Labor Review—April 1940

lower-salaried workers. By applying the Bureau of Labor Statistics’
indexes of living costs, which show changes in costs from time to time,
to the Works Progress Administration data on intercity differences in
costs in March 1935, approximate intercity comparisons of costs were
obtained. As the cost-of-living indexes of the Bureau of Labor
Statistics are based on a budget weighted differently from the budget
used in the Works Progress Administration study, when the two sets
of figures were combined the resulting estimates of intercity differences
in costs were merely approximations.
Early in 1939, the Works Progress Administration budgets were,
in part, priced again for many of the cities. At that time the Bureau
of Labor Statistics, in connection with its study of comparative living
costs in 10 small cities,2 computed the cost of parts of the “mainte­
nance” budget using prices obtained as of December 15, 1938, and
February 14, 1939.
The cost of clothing, housefurnishings, fuel and light, and miscel­
laneous groups was recomputed on the basis of prices of 55 articles of
clothing, 16 articles of furniture and furnishings, 5 items of fuel and
light, and 37 miscellaneous items on December 15, 1938, and weighted
by the quantities provided in the “maintenance” budget. The foodcost budget was entirely recomputed in terms of the “adequate diet at
minimum cost” of the U. S. Bureau of Home Economics (a somewhat
more varied diet than that originally used in the “maintenance” budget).
Average rents in each of the 31 cities were estimated by applying
the Bureau’s time-to-time indexes of rental costs to the Works Prog­
ress Administration’s figures for March 1935.
The Bureau of Labor Statistics has prepared approximations for
December 15, 1939, by applying the Bureau’s indexes of living costs
(which show changes in cost from time to time) to the costs estimated
by the Bureau as of December 15,1938, for all items other than food.
The “adequate diet at minimum cost” was recalculated for each city
as of December 15, 1939, on the basis of 60 foods now priced by the
Bureau of Labor Statistics. The attached tables present these
approximations, showing, first, the estimated cost of living for a 4person manual worker’s family, at the maintenance level as defined
by the Works Progress Administration in 31 large cities, as of Decem­
ber 15, 1939, and then indexes on a base of the cost in Washington,
D. C., on that date as 100.
2 See M onthly Labor Review, July 1939 (p. 22): “ Differences in Living Costs in Northern and Southern
Cities.” That study was made at the request of the Wage and Hour Division.


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925

Cost and Standards of Living

Estimated Cost of Living for a 4-Person Manual Worker’s Family at Maintenance Level,1
in 31 Large Cities as of December 15, 1939
ESTIMATED COST

City

Mobile.

_____-

. - -

Total

Food

$1,326.36
1,316.10
1,276.82
1,414. 76
1, 297.86
1,453. 26
1,330.96
1.397.87
1.303.87
1,425. 51
1,309.10
1, 290. 54
1,301. 66
1, 264.88
1,317.74
1,301. 75
1,417.13
1.190.90
1, 270.88
1,502. 29
1.329.90
1,333. 44
1,365.93
1,339. 37
1,327.23
1, 330. 39
1,385.33
1,455. 51
1,361. 58
1,371.98
1, 486.15

$475. 53
465.45
471.90
467. 00
456.03
474. 41
447.46
457. 58
454. 43
460. 54
455. 79
450. 90
490. 96
458.78
432. 54
443. 68
479. 00
472. 04
469. 05
518. 43
481. 74
474.93
471.41
482. 47
476. 27
449.92
474. 22
486. 02
482. 51
484.19
482. 22

Clothing Housing

Fuel and
light

Furniture,
furnish­
ings, and
household
equipment

$284.89
247. 43
225. 58
259.91
239. 76
290. 67
268. 69
284.01
238. 08
306.37
244. 54
240.60
218. 53
208.38
244.46
260.44
305.16
177.32
206. 36
309. 00
245. 56
255.40
285. 57
201.45
190.86
251.89
283. 71
285.95
264. 76
195. 98
351. 03

$88.18
99.23
68.59
136. 05
107.93
131.90
95.47
113.24
112. 71
113.90
87.70
94.16
100. 52
103.40
72. 05
82.46
137. 25
78.83
74.78
116. 08
97.25
99. 91
88. 55
148.47
137. 20
104.38
108.97
85.03
93.41
125. 04
113.90

$30. 64
35.90
32.94
33.46
32.66
31.81
36.10
33.33
33.38
32.48
35.70
32.95
33.43
33.98
35.41
36.10
33. 04
34.49
37.10
35.16
33.93
33.82
34.20
33. 33
34. 60
34.61
37.47
37. 69
32. 21
36. 01
37.06

$289.10
301.12
307. 31
348.88
292. 00
365.26
307.60
333.57
302. 24
343.66
326. 07
313. 52
310.14
287. 96
363. 70
307. 05
301.16
272.80
322.58
358. 44
303.29
300. 28
318. 62
310.81
329.85
323.47
318.87
388.85
327. 79
359. 53
329.83

82.7
96.9
88.9
90.3
88.1
85.8
97.4
89.9
90.1
87.6
96.3
88.9
90.2
91.7
95.5
97.4
89.2
93.1
100.1
94.9
91.6
91.3
92.3
89.9
93.4
93.4
101.1
101.7
86.9
97.2
100.0

87.7
91.3
93.2
105.8
88.5
110.7
93.3
101.1
91.6
104. 2
98.9
95.1
94.0
87.3
110.3
93. 1
91.3
82.7
97.8
108.7
92.0
91.0
96.6
94.2
100.0
98.1
96.7
117.9
99.4
109.0
100.0

$158. 02
166. 97
170. 50
169.46
169.48
159. 21
175.64
176.14
163.03
168. 56
159. 30
158. 41
148. 08
172. 38
169. 58
172. 02
161. 52
155. 42
161. 01
165.18
168.13
169.10
167. 58
162.84
158.45
166.12
162. 09
171. 97
160.90
171. 23
172.11

Miscel­
laneous

INDEXES
[Cost in Washington, D . C., on December 15, 1939=100.]

Birmingham_______ _ ____

89.2
88.6
85.9
95.2
87.3
97.8
89.6
94.1
87.7
95.9
88.1
86.8
87.6
85.1
88.7
87.6
95.4
80.1
85.5
101.1
89.5
89.7
91.9
90.1
89.3
89.5
93.2
97.9
91.6
92.3
100.0

98.6
96.5
97.9
96.8
94.6
98.4
92.8
94.9
94.2
95.5
94.5
93.5
101.8
95.1
89.7
92.0
99.3
97.9
97.3
107.5
99.9
98.5
97.8
100.1
98.8
93.3
98.3
100.8
100.1
100.4
100.0

91.8
97.0
99.1
98.5
98.5
92.5
102.1
102.3
94.7
97.9
92.6
92.0
86.0
100.2
98.5
99.9
93.8
90.3
93.6
96.0
97.7
98.3
97.4
94.6
92.1
96.5
94.2
99.9
93.5
99.5
100.0

81.2
70.5
64.3
74.0
68.3
82.8
76.5
80.9
67.8
87.3
69.7
68.5
62.3
59.4
69.6
74.2
86.9
50.5
58.8
88.0
70.0
72.8
81.4
57.4
54.4
71.8
80.8
81.5
75.4
55.8
100.0

77.4
87.1
60.2
119.4
94.8
115.8
83.8
99.4
99.0
100.0
77.0
82.7
88.3
90.8
63.3
72.4
120.5
69.2
65.7
101.9
85.4
87.7
77.7
130.4
120.5
91.6
95.7
74.7
82.0
109.8
100.0

i As defined by the Works Progress Administration. See that Administration’s Research Monograph
XII: “Intercity Differences in Costs of Living in March 1935, 59 Cities,” for items included in the main­
tenance budget.


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Federal Reserve Bank of St. Louis

926

Monthly Labor Review—April 1940

CHANGES IN COST OF LIVING OF FEDERAL
EMPLOYEES IN WASHINGTON, D. C.
LIVING costs of Washington Federal employees and their families
were 0.7 percent lower on December 15, 1939, than on December 15,
1938, and 11.2 percent below the first half of 1928. The index for all
items purchased by all groups of employees, based on costs in the first
6 months of 1928 as 100, was 88.8 in December 1938 as compared
with 89.5 a year earlier.
The study on which these figures are based was conducted by pric­
ing in representative Washington stores a list of goods most important
in the spending of Federal employees and their families in the first
6 months of 1928. These expenditures were determined by a study
of the expenditures of 336 families of Federal employees and 123
single individuals made in the fall of 1933.
The cost of food, housing, household operation, and transportation
was lower on December 15, 1939, than on December 15, 1938. The
savings to Federal employees that resulted from the lowered cost
of these groups were partly consumed by the higher cost of furnish­
ings and equipment, clothing, medical care, personal care, recreation,
and life insurance. Educational costs and contributions to the re­
tirement fund showed no change over the year.
Food prices fluctuated considerably during 1939, reaching a high
in September, only to decline during the last 3 months of the year to
a level 2.2 percent below that of December 1938. Meats, poultry,
and egg prices as of December 1939 were far below those of December
1938, while prices for dairy products, fruits, fresh vegetables, and
cereal products averaged higher than a year ago.
Housing costs declined on the average 0.5 percent, household opera­
tion costs 1.4 percent, and transportation 2.4 percent. The declining
cost of the household-operation group was largely due to lower coal
prices, while lowered cost of gasoline, automobile tires and tubes, and
of railroad fares were the chief factors in the decline in transportation
costs.
Costs of furnishings and equipment rose 2.8 percent between Decem­
ber 1938 and December 1939, largely because of the higher prices for
rugs and living-room suites.
Indexes are prepared in December of each year for four groups of
Federal workers living in Washington as well as for the four groups
combined—families of custodial employees with basic salaries less
than $2,500, families of other employees with basic salaries less than
$2,500, families of employees with basic salaries of $2,500 and over,
and employees living as single individuals.


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Federal Reserve Bank of St. Louis

927

Cost and Standards of Living

Over the year 1939, the cost of goods purchased by families of the
custodial group declined 0.9 percent, by families in the other two
Federal services 0.8 and 0.7 percent, and the cost of goods purchased
by employees living as single individuals only 0.4 percent. The
differences in rate of change are primarily due to differences in the
relative importance of food in the total expenditures of each employee
group. Most of the employees living as single individuals pay for
food in restaurants, cafeterias, and boarding houses, and the cost of
meals in this form changes more slowly than does the cost of food as
purchased in retail stores and markets. The food costs of the families
of custodial employees declined slightly more than those of the other
family groups. Because of their lower incomes and larger families,
the custodial group relies more heavily on grain products, on the
cheaper cuts of meat, and on lard than do other Federal employees.
Meat and lard prices were lower at the end of the year than at the
beginning. Since food costs represent one-third of the total cost of
goods purchased by custodial workers, this relatively small difference
in food costs is reflected in total costs to this group.
Percentage changes from December 15, 1938, to December 15, 1939,
by groups of items, for each employee group and these groups com­
bined, are shown in table 8.
Table 9 presents indexes by commodity groups and types of em­
ployees, for each date at which this survey has been made. These
indexes are based on costs in the first 6 months of 1928 as 100.
T able

8.— Percentage Change, From December 15, 1938, to December 15, 1939, in Cost
of Goods Purchased by Federal Employees in Washington, D. C.
Employees living in fanaily groups
All em­
ployees

Group

Custodial
employees
with basic
salaries of
less than
$2,500

Other em­
ployees
with basic
salaries of
less than
$2,500

Other em­ Employees
living as
ployees
single
with basic individuals
salaries of
$2,500 and
over

All item s.........................................................

-0 .7

- 0 .9

- 0 .8

-0 .7

- 0 .4

Food__________________________________
Clothing___________________ _____ _____
Housing_______________________________
Household operation___________________
Furnishings and equipment_____________
Transportation............... ...................................

-2 .2
+ .9
- .5
- 1 .4
+ 2 .8
- 2 .4

- 2 .6
+ 1 .0
-.4
- 2 .2
+ 3.1
- 1 .4

- 2 .5
+ .9
-.4
-1 .4
+ 2 .4
- 2 .3

-2 .4
+ .8
- .7
- 1 .4
+ 2 .8
-2 .2

-1 .2
+ .9

Personal care__________ ________________
Medical care.........— .........- .........- ..................
Recreation____ ______ _______ - .............—
Formal education............................................ Life insurance. - ------- ---------------------------Retirement fund._______________________

+ .3
+ .4
+ .8
(3)
+ .2
(3)

+ 4 .0
+ .1
+• 3
(3)
+ .2
(3)

(2)
+ .4
+ .8
(3)
+• 2
<3)

(3)
+ .6
+ .9
(3)
+ .2
(3)

1 Increase of less than 0.05 percent.
1 Decrease of less than 0.05 percent.
1 N o change.
217593— 40-

10


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Federal Reserve Bank of St. Louis

<0

- .5
+ 5 .0
-3 .8

(>)
(3)
(3)

+ .2
+ .8
+. 2

Monthly Labor Review—April 1940

928

T able 9.— Indexes of Cost of Goods Purchased by Federal Employees in Washington,

D. C., March 1933 Through December 15, 1939
[First 6 months of 1928=100]
ALL EMPLOYEES

Group

D e­ June N ov. Mar. July
March cember
15,
15,
15,
1934 1934
1933
1933
1935 1935

Oct.
15.
1935

Jan.
15,
1936

Apr.
15,
1936

Dee.
15,
1936

Dec.
15,
1937

Dec.
15,
1938

Dec.
15,
1939

All items...........

82.7

85.0

86.4

87.3

88.1

87.8

88.2

88.5

87.8

89.1

91.0

89.5

88.8

Food___________
Clothing_______
Housing________
Household opera­
tion____ _____
Furnishings and
equipm ent.. . .
Transportation...
Personal care___
Medical care____
Recreation...........

70.9
67.0
91.6

72.8
83.5
87.9

75.5
84.7
88.2

78.6
84.7
88.8

81.9
83.2
88.8

82.0
82.9
89.0

82.5
83.0
89.3

82.4
83.6
89.7

79.8
83.5
89.9

81.7
87.7
91.1

83.2
92.4
92.5

78.9
89.2
92.1

77.1
90.0
91.7

87.2

88.0

86.5

88.0

86.8

84.4

86.6

86.5

85.8

85.9

86.5

86.3

85.0

71.3
87.7
89.9
96.0
91.1

87.3
88.6
88.5
95.9
92.2

91.3
92.2
85.2
96.0
94.6

91.2
90.6
82.9
96.9
92.5

91.1
91.2
82.6
97.2
92.0

91.2
91.1
82.4
97.1
91.5

92.4
90.6
83.0
97.0
91.5

93.6
91.8
81.3
96.6
91.6

94.0
92.4
81.3
96.5
91.6

97.8 103.5
88.8 94.3
88.4 86.5
96.8 96.8
92.2 94.3

99.9
95.1
85.8
96.8
98.4

102.6
92.8
86.0
97.2
99.1

108.1 108.1 108.2 108.2 108.4 108.5 108.5 108.5 110.4 110.4 110.4
105.5 106.1 106.1 106.7 107.4 107.4 108.3 107.9 108.5 107.2 109.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

110.4
109.3
100.0

Formal education. 107.8
Life insurance___ 105.3
Retirement fund. 100.0

EMPLOYEES LIVING IN FAMILY GROUPS
Custodial employees with basic salaries of less than $2,600
All item s_______

78.8

82.8

84.0

85.6

87.3

87.0

87.8

87.5

86.1

87.4

88.7

86.5

85.7

Food___________
Clothing____
Housing___ ____
Household operation__________
Furnishings and
equipment. . . .
Transportation...
Personal care___
Medical care____
Recreation_____

64.8
65.5
90.4

69.6
85.0
88.1

72.4
88.6
87.5

76.7
87.8
87.2

81.9
87.0
87.2

81.9
86.7
87.9

83.3
86.9
87.9

82.3
87.3
87.9

78.6
86.9
88.0

81.2
89.7
88.0

81.5
93.3
89.4

76.1
91.4
89.1

74.1
92.3
88.7

87.5

88.5

86.1

88.3

87.3

83.0

85.8

85.7

85.3

85.1

85.2

85.3

83.5

70.1
93.1
92.0
98.4
93.4

87.3
94.8
93.1
97.9
94.9

91.2
96.9
86.6
98.2
97.9

91.0
97.4
82.6
98.4
97.2

90.9
99.6
82.1
98.4
96.1

91.1
99.3
81.8
98.4
95.9

92.4
98.2
81.2
98.2
95.7

93.8
99.1
80.3
97.5
95.8

94.3
99.7
80.4
97.5
95.8

98.0 103.6 99.2
97.9 105.0 105.8
81.0 81.3 79.6
97.7 97.7 98.3
96.1 97.6 100.2

102.3
104.3
82.8
98.3
100.6

110.1 110.1 110.1 110.1 110.1 110.1 110.1 110.1 110.1 110.1 110.1
105.5 106.1 106.1 106.7 107.4 107.4 108.3 107.9 108.5 107.2 109.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

110.1
109.3
100.0

Formal education. 110.1
Life insurance___ 105.3
Retirement fund. 100.0

Other employees with basic salaries of less than $2,500

Food___________
Clothing_______
H o u sin g _______
Household operat i o n . . ____ . .
Furnishings and
equipment____
Transportation.. _
Personal care___
Medical care____
Recreation______

82.1

84.7

86.3

87.1

87.9

87.9

88.1

88.4

87.6

89.2

91.2

89.6

88.9

68.7
66.7
92.1

71.6
83.2
88.4

75.5
84.6
88.6

78.0
84.7
89.0

81.7
83.0
89.1

82.6
82.7
89.2

82.5
82.8
89.6

82.0
83.4
90.4

79.1
83.3
90.7

81.2
88.1
92.0

82.7
92.9
93.3

78.0
89.6
93.0

76.1
92.6
92.6

87.2

88.0

86.5

88.0

86.8

84.5

86.4

86.3

85.8

86.1

87.2

86.9

85.6

71.5
86.5
89.4
95.7
90.9

87.3
88.0
87.8
95.8
92.0

91.2
91.8
84.2
96.0
94.1

91.1
90.4
81.9
97.0
92.3

90.9
91.0
81.6
97.3
91.7

91.0
90.8
81.5
97.2
91.3

92.2
90.3
81.1
97.1
91.3

93.4
91.6
80.4
96.7
91.3

93.7
92.3
80.3
96.7
91.3

97.4 103.0
89.2 95.0
88.2 86.1
96.9 96.9
91.9 94.0

99.3
95.7
85.5
97.0
97.4

101.8
93.5
85.5
97.3
98.2

108.7 108.7 108.8 108.8 109.1 109.3 109.3 109.3 111.2 111.2 111.2
105.5 106.1 106.1 106.7 107.4 107.4 108.3 107.9 108.5 107.2 109.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

111.2
109.3
100.0

108.1
Formal education. 105.3
Life insurance _ 100.0
Retirement fund.


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Federal Reserve Bank of St. Louis

929

Cost and Standards of Living

T able 9.-—Indexes of Cost of Goods Purchased by Federal Employees in Washington,

D. C., March 1933 Through December 15, 1939— C on tin u ed
[First 6 months 1928=100]

EMPLOYEES LIVING IN FAMILY GROUPS—Continued

Group

D e­ June Nov. Mar. July
March cember
15,
15,
15,
1934 1934
1933
1935 1935
1933

Oct.
15,
1935

Jan.
15,
1936

Apr.
15,
1936

Dec.
15,
1936

Dec.
15,
1937

Dec.
15,
1938

Dec.
15,
1939

Other employees with basic salaries of $2,500 and over
82.0

84.8

86.1

87.4

88.1

87.5

88.2

88.7

87.8

89.2

91.3

89.7

89.0

Food___________ 67.9
Clothing_______
67.3
Housing________ 91.5
Household operation__________
85.8
Furnishings and
equipment____ 71.3
Transportation. __ 84.4
90.6
Personal care___
Medical care____ 95.7
89.7
Recreation........ .

70.6
83.9
88.0

72.7
85.1
88.9

77.4
85.2
89.7

80.7
83.8
89.7

79.5
83.5
90.0

80.8
83.6
90.2

81.5
84.1
90.7

78.4
84.0
91.0

80.5
87.9
92.5

82.4
92.7
94.0

77.4
89.4
93.4

75.6
90.2
92.8

86.5

85.1

86.9

85.6

83.2

85.9

85.7

84.7

84.8

85.2

85.2

84.0

87.2
86.4
89.7
95.3
90.6

91.3
90.7
86.5
95.5
93.6

91.2
88.1
83.9
96.3
91.5

91.1
88.7
83.7
96.6
91.1

91.2
88.6
83.5
96.4
90.6

92.4
88.1
83.1
96.3
90.6

93.6
89.6
82.3
95.9
90.7

93.8
90.1
82.3
95.9
90.7

97.8 103.6 100.0
87.5 93.0 93.1
91.0 88.6 88.0
96.1 96.1 96.1
91.4 93.7 98.9

102.9
91.1
88.0
96.7
99.7

107.1 107.1 107.2 107.2 107.2 107.3 107.3 107.3 109.2 109.2 109.2
105.5 106.1 106.1 106.7 107.4 107.4 108.3 107.9 108.5 107.2 109.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

109.2
109.3
100.0

All items_______

Formal education. 107.1
Life insurance___ 105.3
Retirement fund. 100.0

EMPLOYEES LIVING AS SINGLE INDIVIDUALS
All items_______
F o o d __________
Clothing_______
Housing________
Household opera­
tion—
Furnishings and
equipment____
Transportation...
Personal care___
Medical care____
Recreation______

88.3

88.1

88.6

88.8

88.9

88.9

88.9

89.0

89.0

89.5

91.2

90.6

90.3

86.5
67.9
90.7

82.4
82.6
85.8

83.1
82.4
85.9

83.9
82.4
86.9

85.0
80.9
86.8

85.2
80.6
86.9

85.3
80.7
86.8

85.4
81.5
86.1

85.3
81.5
86.4

85.9
85.5
87.0

87.4
90.1
88.2

85.7
87.0
87.9

84.6
87.8
87.9

94.7

95.2

94.9

94.9

93.1

93.0

93.3

93.3

92.4

92.5

90.6

90.3

89.8

70.2
98.4
89.2
96.2
93.0

87.9
94.6
86.9
96.5
93.9

92.7
96.3
85.3
96.6
95.9

93.2
95.7
83.8
97.7
92.9

93.4
96.0
83.6
98.0
92.6

93.6
95.8
83.4
97.8
92.2

95.3
95.6
83.1
97.7
92.3

96.6
96.1
82.5
97.4
92.3

97.4 101.6 108.1 104.3
96.5 88.0 92.0 94.9
82.5 88.3 86.7 85.7
97.4 97.8 97.8 97.9
92.3 92.9 94.9 98.9

109.5
91.3
85.7
98.1
99.6

108.1 108.7 108.8 108.8 109.1 109.3 109.3 109.3 111.2 111.2 111.2
105.5 106.1 106.1 106.7 107.4 107.4 108.3 107.9 108.5 107.2 109.1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

111.2
109.3
100.0

Formal education. 108.1
105.3
Life insurance..
Retirement fund. 100.0

HOW WPA WAGES ARE SPENT
AN ANALYSIS of how the monthly wages of WPA workers are spent
was recently made by the Work Projects Administration,1based upon
the report on Consumer Expenditures in the United States by the
National Resources Planning Board. The distribution of expendi­
tures given in that report for families and single persons with yearly
t Federal Works Agency. Work Projects Administration. Press release February 18, 1940: $120,000,000
in W PA project wages reaching business monthly. Mimeographed.


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Federal Reserve Bank of St. Louis

Mojithly Labor Review—April 1940

930

incomes of between $500 and. $750, was used for WPA families, as
their incomes fall for the most part within that range. The average
income of the families of WPA workers was about $648 a year, or $54
a month.
On that basis, the wages of the average WPA worker would be spent
about as follows: $23 a month on food for himself and family; $11 a
month on rent; $14.50 a year for clothing for each member of his
family; $5.50 a month for heat, light, and household supplies; $2.75
for transportation; $2.20 for medical care; and $5.50 for other items.
There would be considerable difference in these averages in the various
communities and areas of the country, due to differences in the WPA
wages and living costs.
In the early part of 1940, about 2,250,000 workers and their depend­
ents were receiving monthly wages totaling $120,000,000. These
monthly wages, according to the above analysis, would be expended
about as follows:
Estimated Expenditures from Wages Received by WPA-Project Workers

Item

Percentage
distribution1

Total W PA wages________________

100

Estimated distribution of expendi­
tures:
Food___________ _____ ________
Housing--------------------------------Household operation 2----- -----Clothing_________________ ___
Transportation-- ------ ---- Medical care__________________
Other items 3. . - ---------- ------------

42
20
10
9
5
4
10

Estimated
average per
month, Jan.
1940-Mar. 1940
$120,000,000

50,000,000
24,000,000
12,000,000
11,000,000
6,000,000
5,000,000
12,000,000

1 Based on distribution of expenditures of families and single persons with incomes of $500-$750, as esti­
mated in National Resources Planning Board’s report, Consumer Expenditures in the United States.
2 Includes heat, light, gas, and other fuels, ice, refrigeration, household supplies, etc.
s Includes such items as housefurnishings, kitchen and laundry equipment, personal care, recreation, etc.

COST OF LIVING IN FOREIGN COUNTRIES 1
THE principal index numbers of the cost of living (official and un­
official) published in the different countries are given in the following
table. A brief discussion of these indexes is presented in earlier
issues of this pamphlet.
i Table from International Labor Review, Geneva, January 1940, pp. 99-103.


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Cost and Standards of Living
T

a b l e

10 .— Indexes

931

of Cost of Living for Specified Periods for the United States and
Certain Foreign Countries 1

[Series recalculated by International Labor Office on base 1929=100: * a=food; 6=heating and lighting;
c=clothing; d=rent; e= miscellaneous]
Argen­ Austra'
tina
lia

Country
Towns and
localities

Buenos
Aires

30

Original base

Oct.
1933

1923-27

(= 100)

Bel­
gium

Brazil

Bul­
garia

59

Rio de
Janeiro

12-67

Burma Canada Chile

1928-29

Ran­
goon

60-

1931

1926

China Colom
bia

Costa
Rica

San­ Shang­ Bo­
tiago
hai
gota

San
Jose

Mar.
1928

1936

1926

Feb.
1937

Composition
of index
1930.
1931.
1932.
1933.
1934.
1935.
19361937.
1938.

101

95
85
81
78
80
81
83
85
87

104
93
84
83
79
80
85
92
94

4 86

94
94
94
95
93
91
91

87
78
83
78
83
91
93
92

1938: Mar..
June.
Sept..
D ec..
1939: Mar..
June.
Sept..
D e c..

92
94
91
92
93
94
»93

*87

*88
*88
* 89

Czecho­ Den­
slova­ mark
kia

Country

Towns and
localities

Original base
(=100)

91
88
88

87
94
99
114
123
128

64
60
57
58
60

130

60
60
61
62
5 62
62
62

68

?62

Egypt Esto­
nia

Tal­
linn

36

45 dep.

1935

Jan.
1913July
1914

1913

1935

1930

a-e

a, c-e

a-e

a-e

a-e

92
85
84
82
80
81
81
1“ 86
88

Composition
of index
1930_________
1931_________
1932_________
1933_________
1934_________
1935_________
1936_________
1937_________
1938_________

98
93
92
91
90
92
93
94
99

96
1« 90
90
92
96
99
101
104
106

98
91
87
83
84
86
86
85
87

89
86
80
75
74
75
84
89
«93

1938: Mar____
June___
Sept___
Dec___
1939: Mar____
June___
Sept___
D ec........

97
98
99
102
104
108
1» 107

107
105
106
106
106
106
110

86
87
86
87
85
85
87

95
94
93
93
94
94
96
7 97

1

See footnotes at end of table.


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(3)

100

98
90
87
89

87
87
85
83
89
86
«86

113
117

» 89
ii 88
'I 88

100

97
91
87
83
78
68
102
117
* 11S
* 115
* 117
* 120
* 122
* 123

72

(3)

104
130
130
132
144
162
169

(3)
110 (»
)
99
(3
)
98

(3)
(3)
(3)

99
105

(3)

84
84
84
83
83
83
«83

165
171
171
168
164
172
172

139
132
143
134
140
154
224
7 234

24-509

1913-14 July
1914

a-e

( 3)

90
81
78
79
79
81
83
84

122

139

Great
Brit­
Fin­ France Ger­
ain
Hun­
land
many9 and Greece gary
North
Ireland

Whole
Prague coun­ Cairo
try

July
1914

1

92
80
73

a-e

44

(3)
( 3)

( 3)

100

( 3)

100

106
107

110

108
107
107
108
107
109
107

113

m
no
m
126

119
118

India

Ah­
Buda­ Bom­ med­
bay abad
pest

Dec.
1914

1913

July
1933June
1934

Aug.
1926July
1927

a-e

a-d

a-d

a-e

96
88
78
77
79
80
81
81
82

96
90
88
85
86
87
90
94
95

87
io 100

81
82
81
81
82
82
82
8 82

94
97
95
95
93
95
101
7 103

181
128
ISO
ISO
129
129
129
7 132

106
1H
116
117
121
131
ISO

91
86
83
77
76
78
82
87
88

(3)
(3)
(3)
(3)
100

90
77
78
74
73
73
73
78
73

88
87
88
87
86
87
87

107
105
105
101f
103

73
73
73
74
70
74
« 75

100
101
106
106

104

106
8109

Monthly Labor Review—April 1940

932

T able 10.— Indexes of Cost of Living for Specified Periods for the United States and
Certain Foreign Countries— C on tin u ed
Country

IndoChina

Towns and
localities

Saigon

Original base
( = 100)

1925

Composition
of index

a, d, e

1930.
1931.
1932.
1933.
1934.
1935.
1936.
1937.
1938.

107
93
81
75

1938—
Mar. _
June.
S ep tD e c ..
1939—
M ar..
June.
Sept..
D e c ..

4 90
4 93
4 96
4 97
4 96
4 97
4 96

Iran

M ay 21,
1936Mar. 20,
1937

70
83
95

Italy

105

50

24

13

Tokyo

Riga

104

July
1914

June
1928

July
1937

July
1914

July
1914

1930

1913

0
0
0
0
0
0
0

0

0
0
0
(3)

<3)
(3100
)

115
131
135

ISO
ISO
«m
138
139

4 100

4 99

102

Nether­
lands
Indies

New
Zea­
land

Nor­
way

Towns and
localities

Bata­
via

4-25

31

Original base

Jan.
1929

192630

July
1914

Composition
of index
1930
1931
1932......... .
1933
1934
1935
1936
1937
1938

98
97
99
99

86

98

100

103
106
110

110

4 97

107
109

US
US
116
119

US
118
m
m
m
129
129

ISO
133

97
92
90
u 62
89
___________
89
___________
» 52 ...................... 91
......................
93
13 49
___________
___________
100
52
53
103
___________

1938—
M ar.. 53
62
June.
Sept53
D e c..
1939—
M ar.. 53
62
•Tune53
Sept..
7 53
D ec..

58

See footnotes at end of table.


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Federal Reserve Bank of St. Louis

103
104
102
102
102

« 103
104
7 106

75
75
80
82
84
88

96
110

106
109
113
117
117
122

100

91
79
76
72
73
73
79
87
81
93
87
86
86

95
91

Amster­
dam

1914

Oct.
1923Sept.
1924

89
83
71
61
57
50
51
56
57

102
91
79
79
76
74
75
79
81

96
90
84
83
83
81
79
82
83

57
57
57
58
58
58
«58

81
82
81
82
81
81
80
«82

82
84
83
82
82
81
83
7 85

» 103

m

Pales­
tine

Peru

Po­
land

Por­
tugal

Ru­
mania

South­
Swit­
ern
Sweden zer­
Rho­
land
desia

Lima

War­ Whole
coun­
saw
try

Buch­
arest

49

34

1935

June
1914

Jan.
1922

1913

128
7129

1928

96
90
86

83
85
86

90
96
»97
99
96
95
95
96
97
«98

June
1914

198

1936

92
82
74
67
62
60
58
62
61

95
84
83
83
83
84

60
60
60
60
60
61
13 62

86

86

89
86

0
0
0
0
0
0

100

108

m

100
96
92
87
86

85
85
88

97
94
io 92
91
91
92
93
95

«90
89
90

86

85
83
80
81
81
7 82

1914

o, b, d

a, b, e

a, b, e a, c-e

___________
___________

Latvia

Japan

100

Country

( = 100)

Lithua­ Luxem­ Nether­
lands
burg
nia

Ire­
land

97

88

118
122

124

138

«90
»90
»90
89

99
10 9 9

101

93
86

81
80
80
81
85
85
85
85
85
85
84
85
86

»88

933

Cost and Standards of Living
T a b l e 1 0 .— Indexes

of Cost of Living for Specified Periods for the United States and
Certain Foreign Countries— C on tin u ed

Country

Tunisia

Turkey

Union of
South
Africa

United
States
B. L. S.

Uruguay

Towns and localities

Tunis

Istanbul

9

32-51

M onte­
video

Belgrade

3 (Croatia
and Sla­
vonia)

1938

1923-25

1929

1926

July 1914

a-e

a-e

a-e

a-c, e

a-e

Original base (=100)
Composition of index

.-June
July 1914 Jan1914

a-e

1930________________________
1931____________________
1932_________________________
1933________________________
1934_________________________
1935________________________
1936___________________
1937________________________
1938______________________

100
96
83
76
74
69
79
96
111

1938—Mar___________________
J u n e ... _ ____ _ ____
Sept- ________________
Dee_ _________________
1939—Mar__________________
June______ __
Sept
_____________
D ec______________

4 108
4 112
4 116
4 114
4 114
4 121

a-e

Yugoslavia

92
87
85
76
75
69
70
71
70

98
94
90
87
89
88
88
91
94

97
89
80
76
79
81
82
»84
83

100
100
99
93
93
96
96
98
98

92
87
81
79
75
74
74
78
87

92
85
77
66
61
60
61
65
69

72
70
70
70
71
44 71

94
94
93
»93
94
94
93
7 93

83
84
83
83
82
82

99
100
99
100
103

71
69
70
69
69

82

7 104

88
87
89
88
89
87

«78

1 Table from International Labor Review, Geneva, January 1940, pp. 99-103.
I Except for series in italics, which are on original Dase, or recalculated on nearest possible year to 1929.
3 No indexes computed.
4 Indexes computed as of February, M ay, August, and November.
» Corrected figure.
6 August.
7 October.
8 November.
9 Territory before 1938.
10 N ew or revised series beginning this year.
n Indexes computed as of January, April, July, and October.
42 July.
43 Average calculated for a period of less than 1 year.
44 M ay.


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Industrial Disputes

TREND OF STRIKES
AS COMPARED with February a year ago, there was a substantial
reduction in strike activity in February 1940, according to prelimi­
nary estimates. The decreases amounted to 31 percent in number
of strikes, 56 percent in number of workers involved, and 50 percent
in man-days idle.
Trend of Strikes 1933 to February 1940 1
Workers involved in
strikes

Number of strikes
Year and
month

Con­
tinued
from pre­
ceding
month

Begin­
ning in
month
or year

In
progress
during
month

Ended
in
month

In effect
at end of
month

1,695
1,856
2,014
2, 172
4,740
2,772

1933_________
1934____ _____
1935_________
1936_________
1937____ _____
1938_________

Beginning In progress
in month
during
or year
month

1,168,272

Man-days
idle during
month or
year

16, 872,128
19,591,949
15; 456i 337
13, 901, 956
28,424, 857
9,148,273

1, 466j 695
1,117,213
' 788,648
1, 860,621
' 688; 376

1938
January_____
February____
March_______
A pril._ _ . . .
M ay_________
June_________
July .................
August______
September___
October___ . .
N ovem ber... .
December____

120
129
147
175
195
205
179
172
162
150
165
133

168
198
274
281
300
219
208
262
222
256
207
177

288
327
421
456
495
424
387
434
384
406
372
310

159
180
246
261
290
245
215
272
234
241
239
190

129
147
175
195
205
179
172
162
150
165
133
120

35, 329
53,175
56, 759
78,666
83,029
52,801
50,193
48, 378
96,399
52, 703
43,128
37,816

55,850
77,486
105,962
110,950
124,682
95,854
85, 672
81,052
133, 357
113,074
75,445
62,160

473,289
514, 111
767, 856
838,158
1,174,052
871,002
776, 237
830, 987
989, 916
842, 202
557,903
512,560

120
139
139
148
174
160
134
152
164
139
123
99

203
203
208
280
256
239
222
251
176
184
160
88

323
342
347
428
430
399
356
403
340
323
283
187

184
203
199
254
270
265
204
239
201
200
184
112

139
139
148
174
160
134
152
164
139
123
99
75

51,149
68,187
43, 269
396,136
94,829
62,281
174,998
78,205
36,225
105, 385
42, 201
10, 533

72,417
88,192
64,582
425, 640
456, 919
126,771
210, 750
117, 606
102, 585
137, 742
128, 382
33,882

513, 460
552.488
617,327
4,900,498
3, 546,237
956,348
1,164,070
1,099,341
883, 631
1,498, 476
1, 643, 034
350,221

75
75

115
140

190
215

115
130

75
85

25,000
30,000

40,000
39,000

200,000
275,000

1939
January______
February____
March_______
April________
M ay____ _
June_________
July_________
August______
September___
October______
November___
December____
mo
January 1___ .
February 1___

1 Strikes involving fewer than 6 workers or lasting less than 1 day are not included in this table nor in
the following tables. Notices or leads regarding strikes are obtained by the Bureau from more than 650
daily papers, labor papers, and trade journals, as well as from all Government labor boards. Letters are
written to representatives of parties in the disputes asking for detailed and authentic information. Since
answers to some of these letters have not yet been received, the figures given for the late months are not
final. This is particularly true with regard to figures for the last 2 months, and these should be considered
as preliminary estimates.

934

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industrial Disputes

935

The estimates indicate a seasonal increase in strike activity in
February 1940, compared with the preceding month. The number
of strikes increased 22 percent to an estimated 140, the number of
workers involved increased 20 percent to 30,000, and the number of
man-days idle in February increased 37% percent to 275,000. The
largest strike of the month was that of South Atlantic coast long­
shoremen, from February 25 to March 13.
The figures for January and February in the foregoing table are
preliminary estimates based on newspaper reports and other infor­
mation available as this goes to press. An analysis of strikes in
ea.ch of these months, based on detailed and verified information,
will appear in subsequent issues of the Monthly Labor Review.

STRIKES IN DECEM BER 1939 1
STRIKE activity in December 1939 was at a lower level than at any
time since 1933. The Bureau has received detailed information on
88 strikes which began in December, involving about 10,500 workers.
The following analysis is based on these strikes plus 99 which con­
tinued into December from preceding months, making a total of 187
strikes in progress during the month. Nearly 34,000 workers were
involved and there were 350,000 man-days of idleness in December
as a result of these strikes.
The industry groups with the greatest number of new strikes in
December were textiles (18), retail and wholesale trade (17), and
transportation and communication (15). Of the 10,500 workers
involved in strikes beginning in December, the largest number were
m the following industry groups: Stone, clay, and glass (1,922),
machinery (1,559), agriculture and fishing (1,400), textiles (1,383),
and building and construction (1,046). The most man-days of idleness
(114,556) occurred in the transportation and communication industry,
due largely to the ship clerks’ strike in San Francisco which began
November 10 and continued until January 3, 1940. Other groups
with comparatively large numbers of man-days idle were textiles
(34,960), extraction of minerals (33,502), agriculture and fishing
(24,425), and machinery (24,371).
1 Detailed information on a few strikes had not been received at the time this report was prepared.
footnote to preceding table.) Data on missing strikes will be included in the annual report.


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(See

936

Monthly Labor Review—April 1940
T a b l e 1 .— Strikes

in December 1939, by Industry
Beginning in
December

Industry

All industries............................................ ..................................

Mandays
idle
during
N um ­ Workers N um ­ Workers Decem­
ber involved ber involved
ber
88

10, 533

In progress dur­
ing December

187

33, 882

350,221

3
1

445
280

6,325
5,600

1
1

70
95

630
95

10
1
1
1
1
2
1
3

3,603
45
9
150
1,200
271
77
1,851

24,371
270
117
1,650
9, 600
4,850
616
7,268

Transportation equipment....................... .............. .........................
Automobiles, bodies and parts_____ _______ __________

3
3

546
546

8,571
8| 571

Nonferrous metals and their products___ _______ _________
Jewelry____________________________________ ________
Smelting and refining—copper, lead, and z in c ...................

2
1
1

257
9
248

5,185
225
4,960

14
6
2
3
3

1,763
504
385
517
357

21, 678
4,415
7,700
2,416
7,147

Iron and steel and their products, not including machinery..
Cast-iron pipe and fittings______ ____ _____________ . . .
Steam and hot-water heating apparatus and steam
fittings............................................................. .............. ...........
Stoves___________________ _____ ___________
Machinery, not including transportation equipment_________
Agricultural implements____________
__________
Cash registers, adding machines, and typewriters______
Electrical machinery, apparatus, and supplies_________
Engines, turbines, tractors, and water wheels__________
Foundry and machine-shop p rod u cts.................... .............
Machine tools (power driven)............................ ....................
Other ___________ _____ ___ _____ __________ ____ ___

3

1, 559

1
1

9
150

1

1,400

Lumber and allied products___ __________________________
Furniture......................................................................................
Millwork and planing.................. ..........................................
Sawmills and logging cam ps..................................................
Other_______________ _____________________ _________

3
2

119
102

1

17

Stone, clay, and glass products______ _______________ ____
Brick, tile, and terra c o tta ........... .....................................
Glassl...... .......................................................................... ..........
Other_______________ ______ ______ ___________ ______

3

1,922

3

1,922

5
1
3
1

2,269
243
1,922
104

16,228
4,860
9; 288
2,080

Textiles and their products...................... ..................................
Fabrics:
Cotton goods____________________________________
Cotton small w a r es........................ ..................................
Silk and rayon goods___ ____ ____ ___________ ____
Woolen and worsted goods. ................... ........................
O th e r ...______ ___________ ______ ______________
Wearing apparel:
Clothing, men’s . . ........................................ .......................
Clothing, women’s..............................................................
Shirts and collars.................................................................
Hosiery_______ ____ ______ ________ ____ ______ _
Knitgoods.......................... ................................................ .

18

1,383

28

4,102

34,960

1
1

40
78

2

151

2
1
1
1
2

810
40
78
300
151

954
560
702
300
1,212

1
11
1

88
683
308

88
1,641
308
428
258

704
18,794
924
6,000
4,810

1

35

1
15
1
1
3

Leather and its m anufactures........ ............ .........................
Other leather goods.............................. ......................................

1
1

9
9

1
1

9
9

36
36

Food and kindred products. ......................................................
Baking.......................... .................... ............................................
Beverages_________________ ______ ___ ____________ _
Slaughtering and meat packing __________ ____________

2
2

171
171

8
6
1
1

296
265
7
24

2,289
1,682
175
432

Paper and printing. ________________________ ______ _____
Boxes, paper____________________ ___________________
Printing ánd publishing:
Newspapers and periodicals______________________
Other____________________________ ______ _____ _

3
2

145
132

6
3

339
165

7,304
3; 267

1

13

1
2

8
166

160
3,877

3
1
1
1

339
150
179
10

Chemicals and allied products............ ............................................
Chemicals______ ______ ______ ______________ ________
Cottonseed—oil, cake, and meal_______________________
Other___________ _____ _____________________________


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Federal Reserve Bank of St. Louis

8, 579
’
5, 549
30

3 0 00

Industrial Disputes
I

a b l e

937

1. Strikes in December 1939, by Industry — C on tin u ed
Beginning in
December

In progress dur­
ing December

Industry
N um ­ Workers N um ­ Workers
ber involved ber involved
Miscellaneous manufacturing,..
Electric light, power, and manufactured gas__
Furriers and fur factories____
Other. ______ . .

1

Extraction of m inerals..........
Coal mining, anthracite____
Coal mining, bituminous.
Metalliferous mining________

2

795

1
1

755
40

Transportation and communication
Water transportation... . .
Motortruck transportation. .
Motorbus transportation___
Taxicabs and miscellaneous__
Telephone and telegraph... .

15

956
179
95
101
581

T r a d e ........................
Wholesale____
Retail___________

17
8
9

6
3

Domestic and personal service...
Hotels, restaurants, and boarding houses
Laundries___________
Dyeing, cleaning, and pressing_________
Elevator and maintenance workers (when not attached
to specific industry)...................

8
5

230
160

1

44

Professional service______
Recreation and amusement___
Semiprofessional, attendants, and helpers.

4
3
1

375
344
31

Building and construction__
Buildings, exclusive of PW A .
All other construction (bridges, docks, etc., and PWA
buildings)...............................

6
5

1,046
996

Agriculture and fishing.........
Agriculture...........
Fishing.....................
Other nonmanufacturing industries...

87

1

50
1.400
1.400

during
Decem­
ber

522

33, j 02
1

2,698

20

4

15

956

1,014
12, 861

4Î9

5,839
2,016
3,823

1,511
160

344
31
18
12

27,962
1,200
114,556
94,859

2

3
3

Mandays

1, 542

11, 585
632
1,702

3,983

12, 508
4,322

6
21,025
i

6

Almost one-third (29) of the strikes beginning in December were in
New York State, There were 8 each in California and Pennsylvania
and 6 in New Jersey. States having the greatest number of workers
involved were California (1,666), West Virginia (1,565), Tennessee
(1,561), and Michigan (1,494). The most man-days of idleness be­
cause of strikes were in California (132,758), Illinois (45,247), New
York (21,204), and Pennsylvania (20,133). The large number in Cali­
fornia was due to the continuation of the strike of ship clerks and
longshoremen in San Francisco which began November 10 and lasted
until January 3, 1940.


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Federal Reserve Bank of St. Louis

938

Monthly Labor Review—A pril 1940
T able 2.— Strikes in December 1939, by States
Beginning in December

In progress during
December

State
Workers
involved

Number

Workers
involved

Number

Man-days
idle during
December

All States____________ _____ ___________

88

10,533

187

33,882

350,221

Alabama______________________________
Arizona_____________________ ________
California_______________________ _____
Connecticut__________ _________________
District of Columbia_______
_________
Illinois____________________ ______ _____

1
1
8
1
1
2

41
50
1,666
150
145
608

2
1
26
4
2
11

55
50
9,943
827
163
3,237

385
750
132,758
9,490
1,230
45,247

In d ian a,.______ _______________________
Iowa_________ ___________ __________

4
5

348
173

Maryland_____________________________
Massachusetts__ _____________________

2
2

207
48

5
5
1
1
2
6

591
173
11
18
207
892

9,597
978
275
144
842
2,078

Michigan______________ ____ ___________

2

1,494

M ontana______________________________
New Jersey___ . . . _________ ________
New York_____________________________

1
6
29

36
253
629

5
2
4
1
11
52

2,707
98
1,817
36
596
1,760

18,983
1,330
12,555
180
10,129
21,204

Oklahoma_______________________ _____
Oregon________________________________
Pennsylvania__________________________

1
1
8

480
17
386

Tennessee _________

3

1,561

1
2
1
2
17
1
4

87
121
480
503
2,638
100
1,989

522
1,850
11,520
2,318
20,133
2,000
9,161

2
2
6
3
2
3

424
257
564
1,565
1,207
766

3,856
925
10,059
5,795
9,705
4,222

, ______

,,

Texas_________________________________

1

24

Washington_______ ___________ ____ ___
West Virginia. _____ ____________ _____

4
3

179
1,565

Interstate___________________ _________

2

473

The average number of workers involved in the 88 strikes beginning
in December was 120. About 77 percent of the strikes involved less
than 100 workers each, 20 percent of them involved between 100 and
1,000 workers each, and only 2 percent involved over 1,000 workers
each. There were no strikes in December involving as many as 5,000
workers.


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Federal Reserve Bank of St. Louis

939

Industrial Disputes

T able 3.—Strikes Beginning in December 1939, Classified by Number of Workers
Involved
Number of strikes in which the number
of workers involved was—
Industry group

Total
6 and
under
20

All industries_____________

.

20 and 100 and 500 and 1,000
and
under under under
under
100
500
1,000
5,000

88

28

3
3
3
18
1
2
3

1
1

2

2
1

13

1

2
2

13

Manufacturing
Machinery, not including transportation eauiDment
Lumber and allied products.
Stone, clay, and glass products .
Textiles and their products..
Leather and its manufactures
Food and kindred products
Paper and printing_________

1

1

1
3

1

Nonmanufacturing
Extraction of minerals.. . .
Transportation and communication
Trade_______________ .
Domestic and personal service
Professional service______
Building and construction
Agriculture and fishing____ .

2
15
17
8
4
6
3

5
ID
5
2

1
8

2

2
2
2

1
2

1

1

In more than half (56 percent) of the strikes beginning in December
the major issues were union-organization matters. About 40 percent
of the total workers were involved in these strikes. Wages and hours
were the major issues in about 22 percent of the strikes, including 16
percent of the workers involved. In a little more than 21 percent of
the strikes, including about 43 percent of the total workers, the major
issues were miscellaneous matters including rival union or factional
disputes, jurisdiction, protests against penalties considered too severe,
delayed pay, objection to certain supervisors, and demands for im­
proved physical working conditions.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

940

Monthly Labor Review—April 1940
T able 4.—Major Issues Involved in Strikes Beginning in December 1939
Workers involved

Strikes
Major issue
Number

Percent
of total

88

All issues___________________ ____ - --------------------------

Number

Percent
of total

100.0

10, 533

100.0
16.1
15.2
.3
.6

Wages and hours----------------- -------- --------------------------Wage increase______ _____
-- -----------------------Wage decrease_________________________________
Wage increase, hour decrease---------------------- ------ -

20
16
1
3

22.7
18.2
1.1
3.4

1,696
1.605
30
61

Union organization________________________ _____ ___
Recognition____________________________________
Recognition and wages.
----------Recognition, wages, and hours__ - ------ -- ----------Closed or union shop______________ ____________
Discrimination-------- ------- - ------- -----O th e r .--.--------------------------------------------------------

49
16
10
12
7
1
3

55.7
18. 2
11.4
13.6
8.0
. 1.1
3.4

4,230
519
1,821
256
355
800
479

40.2
4.9
17.4
2. 4
3.4
7.6
4. 5

M iscellaneous.. _______ .- ------- . ----------------------Rival unions or factions------------------- ------ Jurisdiction1_________ ______ - -----------------Other______________ . . . . - --------------------------N ot reported_____________________________ _____

19
4
2
12
1

21.6
4.6
2.3
13.6
1.1

4,607
1,475
180
2,927
25

43.7
14.0
1.7
27.8
.2

i it is probable that the figures here given do not include all jurisdictional strikes. Due to the local nature
of these disputes, it is difficult for the Bureau to find out about all of them.

Of the 187 strikes in progress during December, 112 were terminated
during the month with an average duration of 31 calendar days.
About 30 percent of these strikes ended less than a week after they
began, 38 percent lasted from a week up to a month, and 32 percent
lasted for a month or more. Seven strikes in the last group (6 percent
of the total) had been in progress for 3 months or more. These were
all small strikes, none of them involving as many as 500 workers.
T able 5.—Duration of Strikes Ending in December 1939
Number of strikes with duration of—
Industry group

All industries._

------------- ------------- ------------ . . .

1 week
2 and
Total Less and Yi and 1 and
3
less
less
less
than less
months
1 than 3^ th a n l than 2 than 3 or more
months
months
week month month
112

34

24

18

20

9

7

2

Manufacturing
Iron and steel and their products, not including
Machinery, not including transportation equip-

Lumber and allied products.*.------------------------ . . .

2

2
8
1
1
10
3
12
7
1
1
3

1

3
14
19
10
1
11
5

2
8
5
4

1
2
5
1
1

2

5

3
1

i

1
1
2

4
1

1

3
3

1

1

1
1

1

1

No nmanufacturing


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Federal Reserve Bank of St. Louis

4

1
3
6
1
1
1
4

2
2
3

1
3
2

3

3

1

2
1

Industrial Disputes

941

About 49 percent of the 112 strikes ending in December were
settled with the assistance of Government officials or boards. More
than 47 percent of the total workers involved in strikes ending in
December were in this group. One-third of the strikes, including 37
percent of the workers, were settled by direct negotiations between
employers and representatives of organized workers. In 14 percent
of the strikes, which included 12 percent of the workers, no formal
settlement was reached. In these cases the strikes were terminated
when the workers returned on the employers’ terms or when the
employer replaced them with new workers, moved, or went out of
business.
T able 6.— Methods of Negotiating Settlements of Strikes Ending in December 1939
Strikes

Workers involved

Negotiations toward settlements carried on by—
Number
T otal__________
Employers and representatives of organized workers
d ir e c t ly ..____
Government officials or boards
Private conciliators or arbitrators
Terminated without forma] settlement

Percent of
total

Number

Percent of
total

112

100.0

20,354

100.0

38
55
3
16

33.9
49.1
2.7
14.3

7, 556
9,738
511
2,549

37.1
47.9
2.5
12.5

An equal proportion (38 percent) of the strikes ending in December
resulted in substantial gains to the workers and in compromise settle­
ments. Those in which substantial gains were made included about
32 percent of the total workers, while the compromise settlements
covered 43 percent of the total workers involved. In almost 18 per­
cent of the strikes including about 15 percent of the workers, little
or no gains were made.
T able 7.— Results of Strikes Ending in December 1939
Strikes

Workers involved

Result
Number
Total................ .
Substantial gains to workers
Partial gains or compromises
Little or no gains to workers
Jurisdiction, rival union, or faction settlements
N ot reported...............

Percent of
total

Number

Percent of
total

37.5
37.5
17.9
6.2
.9

6,592
8,761
3,013
1,982

43.1

112
42
42
20
7
1

9.7
C1)

1 Less than a tenth of 1 percent.

About 60 percent of the 112 strikes ending in December were over
union-organization matters. Of these, 45 percent were won by the
workers, 30 percent were compromised, and 25 percent were lost.
Of the wage-and-hour strikes, the workers won 30 percent, compro­
mised about 59 percent, and lost 11 percent.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

942

Of the workers involved in the union-organization strikes ending
in December, about 44 percent won their demands, 32 percent ob­
tained compromise settlements, and 24 percent gained little or
nothing. About 80 percent of the workers in the wage-and-hour
strikes obtained compromise settlements, while 8 percent won their
demands and 12 percent gained little or nothing.
T able 8.--Results of Strikes Ending in December 1939, in Relation to Major Issues

Involved
Strikes resulting in—

Major issue

Substan­ Partial
gains or
tial
gains to compro­
mises
workers

Total

Little
or no
gains to
workers

Jurisdic­
tion, rival
union, or
faction
settle­
ments

N ot re­
ported

Number of strikes
All issues...............................................

42

42

20

Wages and hours...................... ..........
Wage increase.............................
Wage decrease.................. ........
Wage increase, hour decrease...

8
3
3
2

16
16

3
2
1

Union organization........ .....................
Recognition----- -------------------Recognition and wages---------Recognition and hours----------Recognition, wages, and hours
Closed or union shop------------Discrimination______ ______ _
Other________________ ______

30
4
10
7
5
2
2

20
3
1
i
3
7
2
3

17
4
4

Miscellaneous___ _______________
Rival unions or factions--------Jurisdiction— ............................
Other______________________
N ot reported------------------------

4

6

4

6

7

1

7

1

5
2
1
1
4
3

1

Number of workers involved
20,354

6,592

8,761

3,013

Wages and hours................................
Wage increase_______________
Wage decrease______________
Wage increase, hour decrease..

2, 730
2,382
332
16

230
42
172
16

2,182
2,182

318
158
160

Union organization---------------------Recognition-------- ---------------Recognition and wages---------Recognition and hours----------Recognition, wages, and hours
Closed or union shop________
Discrimination_______ ____ _
Other----------------------------------

11,371
425
5,584
250
373
1,738
1,154
1,847

5,059
88
3,244

2,695
31
1,790

181
270
812
464

3,617
306
550
250
72
1,023
42
1,374

Miscellaneous................... ..................
Rival unions or factions--------Jurisdiction_________________
O th er..._________ __________
Not reported------------------------

6,253
1,921
61
4,265

1,303

2,962

1,303

2,962

All issu es..------ ------------ --------—


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Federal Reserve Bank of St. Louis

6

1,982

6

1,982
1,921
61

6

120
445
300
9

6

943

Industrial Disputes

ACTIVITIES OF THE UNITED STATES CONCILIATION
SERVICE, FEBRUARY 1940
THE United States Conciliation Service in February disposed of 352
situations, involving 52,324 workers. The services of this agency were
requested by the employees, employers, and other interested parties.
Of these situations, 131 were strikes, threatened strikes, lock-outs, and
controversies, involving 41,502 workers. The remaining situations,
involving 10,822 workers, were services rendered, such as filling
requests for information, adjusting complaints, holding conferences
regarding labor conditions, etc.
The facilities of the Service were used in 26 major industrial fields,
such as building trades and the manufacture of foods, iron and steel,
textiles, etc. (table 1), and were utilized by employees and employers
in 37 States and the District of Columbia (table 2).
T able 1.

Situations Disposed of by U. S . Conciliation Service, February 1940, by
Industries
Disputes

Other situations

Total

Industry
Number Workers Number Workers Number Workers
involved
involved
involved
All in d u str ies.___

_______ ____

131

41, 502

221

10,822

352

52,324

Automobile...... ............... ...............
Building trades________________ . . .
Chemicals___ _________________ .
Communication_________ ___________ ____
Domestic and personal___________ . . . _____
Pood_________ _______________
Iron and steel_______ _______________ . . .

4
10
4

324
1,372
683

6
25
4

10
639
39

10
35
8

334
2, Oil
722

8
19
9

537
12, 849
3,571

10
10
6

84
147
10

18
29
15

621
12, 996
3; 581

Leather____________________ _ __
Lumber____________________
. . _______
M ach inery______
M aritime______ . . . . _.
M ining______________________
Motion pictures____________________
Nonferrous metals__________________

1
10
5
1
3
2
i

275
1, 338
555
22
326
84
42

1
4
11
15
3

1
58
17
4,020
3

2
14
16
16
6

276
1, 396
572
4, 042
329

2

5

3

47

Paper_________________ ____ .
Petroleum .. . ____________________ _
Professional______ _____ _______
Printing________________________________
Rubber___________________ _____
Stone, clay, and glass___ _________________
Textile____________________________

i

265

10

932

11

1 ,1 9 7

3
1
6
15

279
60
1, 337
12,937

6

11

9

290

6
15

10
471

12
30

1,347
13,408

Tobacco________ _______________________
Trade______________________ ______
Transportation___________ . . . ____ . . _.
Transportation equipment________________
U tilities______ ____ . . . _____
___ _ .
Unclassified_____________________ _______

1
8
14
2
1
2

103
1,473
1,207
1,600

1
8
15
2

1
8
167
102

2
16
29
4

104
1,481
1,374
l', 702

38

57

4,074

59

4,112

217593— 40-------11


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Federal Reserve Bank of St. Louis

225

944

Monthly Labor Review—April 1940

T able 2.—■Situations Disposed of by U. S. Conciliation Service, February 1940, by States
Other situations

Disputes
State

All States________________________________


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Federal Reserve Bank of St. Louis

N um ­
ber

Workers
involved

N um ­
ber

131

41, 502

221

Total

Workers
involved

N um ­
ber

10, 822

352

_

.

<r

Workers
involved
52,324

9
1
7
1
10
4

2,445
51
921
100
446
566

1
37
1
19
8

1
2,574
1
177
107

2
44
2
29
12

2,445
52
3,495
101
623
673

1
10
5
5

500
12, 794
1,399
277

3
19
5
5
1

202
3,209
66
802
1

4
29
10
10
1
4

702
16,003
1,465
1,079
1
690

4

690

2
5
1
1
3

261
4,487
74
120
149

15
5
2
4
7
3

993
207
2
38
8
3

17
10
3
5
10
3

1,254
4,694
76
158
157
3

1
1

18
80

2
2
1
2
2
15

4
2
1
2
2
27

3
3
1
4
2
26

22
82
1
399
2
4,417

1
17

1
32

11

166

3
12

4
39

3
32
1
25
1
5
14

3,101
1,766
509
1,319
27
3,204
306

3
2
1
6
4
1
1

5
44
1
2,036
4
1
60

4
2
5
9
4
3
1

305
44
557
2,255
4
273
60

2

397

11

4,390

2
15
1
14
1
2
2

3,100
1,734
509
1,153
27
3,200
267

1

300

4
3

556
219

2

272

Minimum Wages and Maximum Hours

CHANGES IN REGULATIONS UNDER WAGE AND
HOUR LAW
REGULATIONS governing the employment of apprentices and
handicapped workers and the keeping of records have been modified
recently by the Wage and Hour Division of the United States Depart­
ment of Labor.1 The main provisions of the new regulations, applying
to workers engaged in interstate commerce or in the production of
goods for interstate commerce, are given below.2
Apprentices

y

The requirements governing employers desiring to employ appren­
tices at less than the prescribed minimum wages established under the
Fair Labor Standards Act were strengthened and made more definitive.
Before applying for an apprenticeship certificate, the employer must
obtain official approval of the apprenticeship agreement under which
the apprentice is hired. Such approval may be given either by the
State apprenticeship council or the corresponding apprenticeship
authority, provided that body has been approved by the Federal Com­
mittee on Apprenticeship (U. S. Department of Labor). If no
approved apprenticeship council or authority exists in the State,
approval of the apprenticeship agreement must be obtained from the
Federal Committee on Apprenticeship.
In specifying that the respective State bodies must be approved,
the purpose is to insure that the standards of apprenticeship training
that they establish shall be equal to or comparable to the standards
fixed by the Federal Committee on Apprenticeship.
The term “apprentice” was not modified, and still signifies a person
at least 16 years of age who is employed, under a written apprentice­
ship agreement with the employer, to learn a skilled trade. This
agreement must provide for not less than 4,000 hours of reasonably
continuous employment for the apprentice, under an approved
schedule of work experience throughout the period of employment,
and for at least 144 hours a year of supplemental instruction in classes
on subjects related to that trade.
• Press releases Nos. 624, 28, 39, 40, 48, and 49.
1 The original regulations were summarized in the M onthly Labor Review, January 1939 (p. 151).


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Federal Reserve Bank of St. Louis

945

946

Monthly Labor Review—April 1940

If the apprenticeship agreement has been approved in the required
manner, and not less than 4,000 hours of reasonably continuous em­
ployment is required to prepare a worker of normal ability for the
skilled occupation designated in the apprenticeship agreement, the
Administrator of the wage and hour law will authorize the employ­
ment of the apprentice. A special certificate will be issued for this
purpose, giving the rate or rates less than the minimum wage ap­
plicable under the act and the length of time specified in the agree­
ment.
Handicapped Workers
After almost a year of study, the Committee on Sheltered Work­
shops made the recommendations summarized below for the employ­
ment of handicapped clients in non-profit-making charitable institu­
tions, known as “sheltered workshops.”
The general purpose of the recommendation is to permit the em­
ployment at less pay than the minimum established under the wage
and hour law, of persons who are handicapped, whose earning capac­
ity is impaired by reason of age or physical or mental deficiency or
injury, and who are being served in accordance with the recognized
rehabilitation program of a sheltered workshop. At the same time,
arrangements must be avoided which constitute an unfair method of
competition in interstate commerce or which tend to spread or perpetu­
ate substandard wage levels.
Sheltered workshops are required to send monthly reports to the
Administrator under the terms of the regulations. Among other
things they must specify the amount of cash wage payments made to
each handicapped client (or worker) for each week; the estimated
cost to the sheltered workshop of the client’s lodging and meals ; and
a statement of the payments or funds, if any, received by the shop
from any source for service maintenance, care, or wage of the partic­
ular client. If any client works more than the maximum number of
hours per week (42 until Oct. 24, 1940; 40 thereafter) permitted under
the Fair Labor Standards Act, the reports must also show the client’s
regular rate of pay and the extra amount paid for overtime hours of
labor.
In the discretion of the Administrator, public hearings may be
conducted upon application for or cancelation of certificates, or on
petitions for the amendment of regulations. The Wage and Hour
Division will notify the Sheltered Workshop Advisory Committee of
any contemplated denial of a certificate to any institution applying
for a certificate. The committee will be given 10 days to present its
view to the Administrator, or his designated representative, concern­
ing the contemplated denial.


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Minimum Wages and Maximum Hours

947

Applications for the employment of handicapped persons must be
filed with the Administrator by any sheltered workshop. Certificates,
.when issued, will fix the minimum wage which the sheltered workshops
must pay to clients. If an individual’s earning capacity for the work
he is to perform is impaired to any extraordinary extent, a special
certificate may authorize his employment at a lower wage rate than
is established by the certificate. Employment will not be legalized
under a certificate at less than the minimum wage rate applicable to
the industry in which the workshop is participating, unless the
individual is, in fact, handicapped.
Record Keeping
Regulations dealing with record keeping have been modified to
eliminate the need for special authorization to keep records outside
the State where the place of employment is situated. It is expected
that the new regulations will coincide with existing business practices.
By the terms of the wage and hour law, every employer subject to
any of its provisions must keep records showing the full name of the
person employed, home address, date of birth if under 19, and specified
records as to hours worked and wage payments. Before the regula­
tions here reviewed were adopted, these records were required to be
kept within each State either at the place or places of employment, or
where that was impracticable, within at least one of the employer’s
places of business within such State. If the employer found it desir­
able to keep records at some central-accounting or record-keeping
office located in a State other than the State where the place of em­
ployment was situated, he was formerly required to obtain special
authorization from the Administrator.
This special authorization procedure has now been abandoned and
the employer may comply with the record-keeping requirements in
either of two ways: He may keep the records at the place or places
of employment, or at one or more established central record-keeping
offices where such records are customarily maintained. If the records
are kept at a central office, then, under the amended regulations the
employer must maintain another brief record, containing the total
number of hours worked and total wages paid in each workweek for
each employee, at the place of employment. This record must include
the name, address, and occupation of the employee in each case.
For employees engaged in bona fide executive, administrative, pro­
fessional, or local retailing capacity, or as outside salesmen, who are
exempt from the wage and hour provisions, a record of the name,
address, and occupation of each exempt employee is also required to
be maintained.


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Federal Reserve Bank of St. Louis

948

Monthly Labor Review—April 1940

Complete records maintained at the place of employment must be
kept safe and readily accessible for a period of 4 years. If the records
are kept at a central location they must be available under the same
conditions for 4 years, while the abbreviated records at the place of
employment are required to be kept safe and readily accessible for 2
years.
********

EFFECT OF MINIMUM WAGE IN NEW YORK BEAUTY
PARLORS
THE weekly pay envelope of the average beauty-parlor operator in
New York contained $3.27 more in March 1939 than in 1936 before
the minimum wage became mandatory in the industry. In fact, all
classes of workers in beauty shops had much higher earnings after the
minimum wage became effective than before. This was evident from
the sworn pay rolls of beauty-parlor employers filed with the State
division of women in industry and minimum wage, according to the
Industrial Bulletin for January 1940, published by the Industrial
Commissioner of New York.
The median wage of women in beauty shops in March 1939 was
$16.74 a week, which was an increase of 24 percent over the $13.47
median in 1936. The women who earned less than $10 a week in
1939 comprised less than 9 percent of all the women, whereas almost a
third had earned less than that amount in 1936.
The employers’ pay rolls for 1939 showed that it was not only the
lowest-paid workers who benefited from the introduction of the mini­
mum wage, but that workers in all the grades were helped. Eightyfive percent of the women were shown to have earned $15 or more a
week, as compared with only 35 percent in 1936. Over half of the
workers received over $16.50, the weekly minimum.
The following comparison of week’s earnings of beauty-shop work­
ers before and after the minimum wage became effective shows the
benefit derived therefrom:
1986

_____ 5, 157
Number of women reporting. _
_____ $13. 47
Median week’s earnings _ —
Percent of women who earned—
10. 6
Under $5----------------------------------- _____
_____
20. 4
$5 and under $10
_____
11.9
$10 and under $12
— -----_____
22. 2
$12 and under $15 ----_____
19. 7
$15 and under $20
15. 2
$20 and over.
'
..
- -______
i Includes 35 male minors.


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Federal Reserve Bank of St. Louis

March
1989

i 12, 594
$16. 74
2. 4
6. 3
.9
5. 2
66. 3
18. 9

Minimum Wages and Maximum Hours

949

Long hours used to prevail in the beauty-service industry, but in
1939 they were the exception, according to the report. The median
workweek in that year was 45 hours. This was attributed not only
to the minimum-wage order but also to the fact that in 1938 beauty
shops were brought under the hours law with its limit of 48 hours.
Hourly earnings were much higher in March 1939 than in 1936, the
median being 39.2 cents in 1939 as compared with 27.6 cents in 1936.
A comparison of identical establishments, mostly shops which continue
in business year after year, showed that even in these shops very low
wages were found prior to the minimum-wage order. An increase
from 30 to 39 cents in average hourly wages occurred after the order
became effective.
The difference in the length of the working week and in hourly
earnings in 1936 and in March 1939 is shown in the following table:
Hours Worked in Week and Hourly Earnings in New York Beauty Shops, 1936 and 1939
Hours worked
in week
Item

Number of women reporting
Median w eek’s hours
Percent of women who worked—
Under 24 hours __
24 and under 30 hours
30 and under 36 hours
36 and under 42 hours
42 and under 48 hours___
48 hours____
Over 48 hours___
1 Includes 35 male minors.
2 Less than a tenth of 1 percent.


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Federal Reserve Bank of St. Louis

Hourly earn­
ings
Item

1936

March
1939

4,665
48.4

1 12,567
45.0

6.1
2.2
3.5
5.0
16.1
16.5
50.6

9.5
3.4
1.7
7.5
62.1
15. 3
.5

1936
Number of women reporting
5, 026
Median hourly earnings (cents).__ 27.6
Percent of women who earned—
6.1
18.0
15.9
19.1
13.5
8.9
18.5

March
1939
1 12,562
39.2
(2)
(2)

.1
.1
2.8
56.2
40.8

Wages arid Hours of Labor

HOURLY EARNINGS IN THE LEATHER INDUSTRY,
SEPTEMBER 1939 1
IN SEPTEMBER 1939, earnings in the leather tanning and finishing
averaged 62.3 cents an hour. Individual earnings, however,
ranged all the way from less than 30 cents to over $1 an hour.
Despite the wide range of individual earnings, a recent study by
the Bureau of Labor Statistics disclosed only a relatively small pro­
portion of the wage earners in the low-wage classes. Taking the
industry as a whole, only 1.2 percent were paid less than 30 cents an
hour, 2.7 earned less than 35 cents, and no more than 5.8 percent
received less than 40 cents. On the other hand, there was a fairly
substantial scattering of employees in the higher-earnings classes, 13.2
percent averaging 82.5 cents an hour or better. This is particularly
noteworthy in view of the predominance of semiskilled and unskilled
workers in the industry.

in d u s tr y

Scope of the Survey
The manufacture of leather from hides and skins includes two
principal processes, namely tanning and finishing.2 Most establish­
ments are integrated, thus performing all processes. A few plants do
tanning only, but a substantial number engage in finishing only. The
Bureau’s survey included integrated establishments, as well as those
confining their operations to either tanning or finishing.
In defining the industry, the Census of Manufactures makes a
distinction between regular and contract factories, the former covering
plants working primarily on hides and skins owned by them, and the
latter including establishments that manufacture leather on contract.
Some of the regular plants, however, also do some contract work, and
some of the contract establishments also manufacture small amounts
of leather from hides and skins owned by them. The present survey
includes both regular and contract plants.
The information presented in this report was collected by actual
visits of the Bureau’s trained field representatives to every plant
included in the survey. Using pay-roll and other records, the field
>Prepared by P. L. Jones, H. O. Rogers, and O. R. Witmer under the direction of J. Perlman, Chief,
Division of Wage and Hour Statistics.
2 Includes currying, a secondary process of finishing leather after tanning.

950

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Federal Reserve Bank of St. Louis

Wages and Hours of Labor

951

representatives obtained for every worker (including working super­
visors and plant clerks 3) in each establishment, the occupation, sex,
race, total hours actually worked, and total earnings for a pay-roll
period between September 10 and October 1, 1939.4 In addition,
certain general plant information concerning full-time hours, overtime
rates, methods of wage payment, and employer-employee dealings was
secured from the officials of the cooperating firms.
Descriptions of the various occupations were obtained from a num­
ber of establishments, especially where there was some doubt as to
the duties involved. This information, coupled with that obtained
from previous surveys of the leather industry, furnished the basis for
the detailed occupational groupings used in the report. In addition,
the occupations were classified according to skill. This classification
was developed on the basis of the prevailing opinion of plant super­
visors, or foremen, as well as other information available in the Bureau.
Any classification of occupations by skill tends to be somewhat arbi­
trary, but despite this limitation it is believed that the skill designa­
tions used in this report are essentially accurate.
It should be noted that the data collected cover a period prior to
October 24, 1939, the effective date of the 30-cent minimum and 42hour maximum under the Fair Labor Standards Act. As the earnings
of only a small proportion of the workers in the leather industry fell
short of the 30-cent minimum at the time of the survey, the wage
structure shown here is not likely to be much different from the one
now in existence.
During the period covered by the survey, the Fair Labor Standards
Act provided for a workweek of 44 hours for plants engaged in inter­
state commerce, and employees working in excess of this standard
received time and a half for overtime. Unless otherwise indicated,
the hourly earnings shown in this report are based on regular rates.
Consequently, they do not reflect the compensation from the extra
rates paid for overtime work.5
The survey excluded all integrated plants having fewer than 20
employees, or any separate tanning or finishing establishments with
fewer than 10 workers. This reduced the total number of plants in
the industry to about 300, which employed somewhat less than 50,000
wage earners.
3 The survey did not cover higher supervisory officials and office workers in central or other offices that
are separate and distinct from the plants.
* In establishments where the pay-roll period exceeded 1 week, there was also obtained the number of
hours worked during 1 continuous week within the pay-roll period. This enabled the Bureau to present
weekly hours, as well as weekly earnings for all workers.
* In most surveys made by the Bureau of Labor Statistics, the compensation resulting from the extra
rates for overtime work is included in computing average hourly earnings. The present survey, however,
was made at the request of the Economic Section of the Wage and Hour Division, in order to provide reliable
information on wages for use of the industry committee that has been established under the Fair Labor
Standards Act of 1938. For this reason, it was considered desirable to exclude the earnings at the extra rates.
Although made primarily for the Wage and Hour Division, the Bureau has strictly adhered here to its
long-established policy of keeping confidential all data obtained from individual establishments.


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952

Monthly Labor Review—April 1940
CHARACTERISTICS OF THE INDUSTRY

As an employer of labor, the leather industry is fairly important.
In the aggregate, the 402 establishments6 in the industry, according to
the Census of Manufactures, provided work for 50,687 wage earners
in 1937, with the total wage bill amounting to $61,288,375. The
latter constituted 54.0 percent of the value added by manufacture.
For many years, an outstanding feature of the leather industry was
the remarkable decrease that had taken place in the number of estab­
lishments, which was accompanied by an almost steady rise in the
number of wage earners. According to the Census of Manufactures,
the number of plants declined from somewhat less than 7,000 in 1849 to
680 in 1919,7 but the number of wage earners increased from approxi­
mately 26,000 to 72,000. This was the result of a gradual expansion
in the size of establishment.
Even between 1921 and 1937, the number of establishments in the
leather industry decreased by about one-third.8 On the other hand,
the number of wage earners, which was subject to considerable fluctua­
tion during this period, never approached the high level reached in
1919. It will be noted, however, that the size of plant in terms of
number of wage earners has increased generally during these years.
Although the size of the producing unit in the leather industry has
been growing steadily, the typical plant is still relatively small. In
1937, for example, the average per establishment was 126 wage earners.
Of the 402 plants in that year, only 20 reported between 501 and 1,000
workers, and only a single establishment showed over 1,000 employees.
In contrast, about three-fifths of the plants employed 100 workers or
less, and virtually one-fourth showed 20 employees or less.
Leather manufacturing is widely scattered geographically. The
New England States, which constituted the early center of the indus­
try, still remain an important producing region. Most of the leather
plants in the Pacific States are located in the vicinity of San Francisco.
In the Southern States, by contrast, establishments making leather
are scattered throughout the Appalachian belt, but their combined
employment constitutes only a minor portion of the industry’s total.
At first glance, the leather industry appears reasonably homogeneous
in terms of product. Actually, however, it is an industry of extreme
diversity. The factors that contribute to the complexity of the
« Includes only plants with an annual production valued at $5,000 and over.
7 Prior to 1905, all kinds of manufacturing and mechanical establishments were included hy the Census of
Manufactures. Since 1905, however, only manufacturing establishments conducted under what is known
as the factory system have been included. This change affects the comparability of the data as regards the
number of plants for the various industries.
8 Likewise, the figures since 1921 are not strictly comparable with those for 1919 and prior years. Before
1921, the Census of Manufactures covered all establishments with a value of product amounting to $500 and
over. Beginning with that year, however, the minimum requirement was extended to a product value of
$5,000 and over. This change probably accounts for most of the decrease in number of plants between 1919
and 1921. The establishments excluded due to the shift in definition were very small, so that the reduction
in number of wage earners between the two years was due primarily to other causes.


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Wages and Hours of Labor

953

industry are the variations in the kinds of animal skins or hides em­
ployed for conversion into leather and the specific uses for which the
finished leather is intended. These factors, in turn, determine the
tanning and finishing methods employed in the manufacturing process.
Some idea of the variety and relative importance of the various
products manufactured in the leather industry may be obtained
from table 1, which has been condensed from a more detailed table
presented by the Census of Manufactures for 1937. It will be seen
that, in terms of value, the most important products are sole and
belting (30.3 percent), side upper leather (20.2 percent), kid upper
leather (10.8 percent), and calf upper leather (9.9 percent).
T able 1 .— Value of Products in the Leather Industry, 1937
[Based on data from Census of M anufactures]

Kind of leather
All kinds______________
Sole and belting leather_____
Side upper leather, cattle 2__
Kid upper leather__________
Calf upper leather________
Sheepskin and goatskin—
Glove and garment leather
Lining leather____ ____
Splits, other than upper and
upholstery leather________

Value of
product

Per­
cent

! $362,094,589

100 0

110, 212,195
73,044,815
39,132, 725
35,705, 736

30.3
20.2
10.8
9.9

15, 639,069
13,965,396

4.3
3.9

10, 230,174

2.8

Kind of leather
Upholstery leather (automo­
bile, furniture, and car­
riage)____ __________
Patent upper leather______
Fancy leather___ _____
Bag, case, and strap leath er..
Harness and collar leather___
Horsehide____________
Welting leather____ _____
Miscellaneous leather3____

Value of
product

7,138, 787
9,326,345
6, 625,961
5,315, 613
6,000,303
5,750,321
2,297,520
21, 709, 629

1 Includes the value of leather only, whether made as a primary product in this industry or as a secondary
product in other industries. In order to avoid duplication, the value of rough leather has been excluded
2 Includes also wax and finished splits.
3 This includes all other leather which is not classified with the above items.

DESCRIPTION OF THE SAMPLE

In the present survey, no attempt was made to cover all of the
leather plants. Instead, the survey was restricted to a carefully
selected sample of 152 establishments, from which wages and hours
data were obtained for 25,617 wage earners.
The method of sampling used by the Bureau in this survey differs
from that employed in other surveys. In the outlying States, where
a relatively small proportion of the industry is located, the survey
covered virtually all establishments. This included California and a
number of Southern States; namely, Virginia, Tennessee, North Caro­
lina, Georgia, and Texas. Similarly, the Bureau covered all single­
plant companies with 500 wage earners and over. For the small and
medium-sized single-establishment concerns, however, as well as the
plants of multi-unit companies in all regions, which are located
in other parts of the country, the coverage was on a sample basis.
The “ cell” method of sampling was used, in accordance with which
a number of cells were formed, each constituting a more or less
homogeneous entity with respect to size of plant, location, size of
community, product, unionization, etc. Depending upon the number of
establishments in the cell, or one more plants were selected to represent

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Monthly Labor Review—-April 1940

954

each cell, which were later weighted to bring the figure up to the total
size of the cell. Upon the completion of the weighting, the coverage
was checked to make sure that it afforded an accurate cross-section
of the industry, from the standpoint of size of plant, corporate affilia­
tion, product, geographical distribution, size of community, and
unionization.
An indication of the representative nature of the sample may be
seen from the extent to which its geographical composition corresponds
to that of the total industry. This is shown by table 2, which com­
pares the distribution of the industry by States from the Census of
Manufactures and that in the Bureau’s survey. In making this
comparison, it is important to note that the present survey was made
in September 1939, while the most recent available data for the Census
of Manufactures are for 1937. It should also be kept in mind that
the wage survey included only establishments with 20 or more workers,
whereas the Census of Manufactures covered all plants with an annual
production valued at $5,000 and over. Finally, it will be noted that,
in several of the States shown, data on the wage earners employed by
contract factories are not available from the information of the Census
of Manufactures, while such contract factories are included in the data
for each State in the Bureau’s survey. In spite of these differences, an
examination of the figures indicates that the proportion of wage
earners covered by the survey in most States corresponds very closely
with that reported by the Census of Manufactures. Massachusetts,
for example, accounted for 20.1 percent of the wage earners in 1937,
as compared with 21.0 percent in the survey. In other States, like­
wise, the correspondence between the two series is striking.
T able 2.— Coverage of Survey in the Leather Industry, by States, 1939
Census of Manufactures, 1937
State
Number of
workers

Percent of
workers

Percent of
workers in
Bureau
survey 1

United States________ ______________ _______________

50,687

100.0

100.0

California__________________
_
_ ________
Delaware_______ __________ ___________ _ _ _ _ _ _ _
Illinois___ _____ ____________ _________ ____ ______
M assachusetts-.- - ________________________________
Michigan. ________________________ ._ ____________
N ew Jersey____________________ __________________

667
3 2,692
3 4,376
10,205
2, 569
3,265

1.3
5.3
8.6
20.1
5.1
6.4

1.3
5.1
10.7
21.0
2.5
6.1

New Y ork.. _________________________ __________
North Carolina_______________________________ ____
Ohio__________ _ ______ __________ _ ___________
Pennsylvania_________ _ _______ ______ ___________
Wisconsin. _____ . ..
Other plants_________ _ _ . ___ __________ ________

5,548
1,133
1,825
« 8, 541
3 4,307
8 5, 559

10.9
2.2
3.6
16.9
8.5
11.1

10.5
1.8
2.2
16.4
12.9
7 9. 5

1 Excludes integrated plants with less than 20 employees, as well as finishing establishments with less
than 10 workers.
3 Excludes 1 contract plant.
3 Excludes 3 contract plants.
* Excludes 3 contract plants.
• Excludes 2 contract plants.
8 Includes 2 regular factories in Connecticut, 2 in Georgia, 5 in Indiana, 3 in Kentucky, 1 in Maine, 3 in
Maryland, 3 in Minnesota, 4 in Missouri, 3 in New Hampshire, 4 in Oregon, 1 in Rhode Island, 2 in Tennes­
see, 2 in Texas, 7 in Virginia, 1 in Washington, and 6 in West Virginia; includes also 1 contract factory in
Colorado, 1 in Delaware, 3 in Illinois, 2 in Maine, 1 in New Hampshire, 3 in Pennsylvania, and 2 in Wiscon­
sin.
7 Includes 3 plants in Connecticut, 1 in Georgia, 2 in Indiana, 2 in Maryland, 1 in Minnesota, 2 in Missouri
2 in New Hampshire, 3 in Tennessee, 1 in Texas, 2 in Virginia, and 2 in West Virginia.


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Wages and Hours of Labor

955

The estimated (weighted) number of workers as computed from the
Bureau’s survey was approximately 47,900.9 Applying to the figure
of 50,687 wage earners, as reported by the Census of Manufactures for
1937, the net change in employment disclosed by the Bureau’s index
numbers, the estimated number of workers in the industry at the time
of the survey in September 1939 was about 47,300, which is only
slightly less than the weighted figure shown above. In September
1939, the Bureau obtained information by mail questionnaire on
employment and pay rolls from 169 establishments in the leather
industry, with 34,300 employees. These workers averaged 63.4 cents
for hourly earnings, 38.6 for weekly hours, and $24.32 for weekly
earnings,10 which may be compared with 62.3 cents, 39.1 hours, and
$24.42, respectively, on the basis of the present field survey.11 The
close correspondence between the respective figures of two independent
surveys is evidence of the accuracy of both samples.
Average Hourly Earnings
M ETH O D S OF W A G E PA Y M E N T S

A majority of the wage earners in the leather industry are paid on a
straight time-rate basis. Although the proportion varied from plant
to plant, some time workers were found in each of the establishments
included in the survey. Most of these employees were paid on an
hourly basis, but there were a few occupations, such as working fore­
men and maintenance workers, that were customarily on a weekly
or monthly basis. Including the salaried employees, 51.8 percent
of the wage earners in the industry were paid on a time-rate basis.
Although time workers predominated in the industry, some em­
ployees were paid straight piece rates in approximately three-fourths
of the establishments, the total number of workers affected being
38.5 percent of the labor force. In general, employees paid at piece
rates were most frequent in the finishing departments. The occupa­
tions showing a considerable number of piece workers were machine
stakers, togglers, tackers, buffers, machine setters-out, glazingmachine operators, hand finishers or seasoners, and shaving-machine
operators. Moreover, group piece rates were frequently applied to
some of the occupations. Togglers and tackers, for example, in many
plants, customarily worked in teams and split their total earnings.
Production-bonus systems of wage payment were reported by a
few of the larger establishments, affecting approximately one-tenth
of the total wage earners in the industry. In some of these plants,
moreover, only certain classes of employees were affected.
# This figure excludes integrated establishments with fewer than 20 employees, as well as finishing plants
with fewer than 10 workers, neither of which were included in the survey. These establishments covered
approximately 800 employees.
10 The figures on average hourly and weekly earnings include the extra earnings due to overtime work.
» The figures on average weekly hours and earnings in the survey are exclusive of 1 establishment, which
did not report total hours worked.


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Monthly Labor Review—April 1940

956

HOURLY EARNINGS OF ALL WORKERS

For all wage earners in the leather industry, earnings in September
1939 averaged 62.3 cents an hour, but varied considerably among
establishments. Indeed, for the plants covered by the survey, the
averages ranged from under 30 cents to almost $1. Despite the wide
differences, a substantial number of establishments, employing more
than one-half of the workers, showed plant averages that fell within
the 15-cent range between 55 and 70 cents. On the other hand, the
establishments averaging under 55 cents employed less than onefifth, while those with averages of 70 cents and over accounted for
more than one-fourth of the total labor force.12
Considering the hourly earnings of individual workers, which are
shown in table 3, the largest proportion (13.9 percent) in any 5-cent
interval was found between 57.5 and 62.5 cents. Approximately
one-half (48.7 percent) received between 47.5 and 67.5 cents, and
over four-fifths (81.0 percent) were paid between 40.0 and 82.5 cents.
A substantial proportion, namely 13.2 percent, earned 82.5 cents and
over. On the other hand, relatively few (5.8 percent) received less
than 40 cents. This is particularly noteworthy, in view of the pre­
dominance of semiskilled and unskilled workers in the industry.
T able 3.—Percentage Distribution of Leather Workers by Average Hourly Earnings,
Sex, and Skill, September 1939
Males
Average hourly earnings

Exactly 25.0 cents---- --------- ----------------------------------25.1 and under 27.5 cents___________________ _______
27.5 and under 30.0 cents* - ------- ----------- -----------30.0 and under 32.5 cents.-- _______________________

All
work­
ers

Total

(i)
0.6
.3
.3
.7

0)
0.5
.2
.2
.6

Fe­
males

Semi­
Skilled skilled

U n­
skilled

0.1
0)
(0
.2

0.1
.2
.2
.4

0.1
1.6
.3
.4
1.1

1.7
1.0
1.8
2.1

32.5 and under
35.0 and under
37.5 and under
40.0 and under
42.5 and under

35.0 cents*- ________ ________ - 37.5 c e n ts --------------- ------ 40.0 cents----------------- ----------- ------42.5 cents__________________________
47.5 cents- _____________ __________

.8
1.9
1.2
5.5
7.4

.6
.6
.9
4.0
6.5

.2
.2
.3
.7
1.8

.5
.4
.6
2.7
5.2

.9
1.3
1.8
7.9
11.2

2.4
15.2
4.5
22.8
17.4

47.5 and
52.5 and
57.5 and
62.5 and
67.5 and

under
under
under
under
under

52.5 cents_____________________ --- 57.5 cents__________________________
62.5 cents* ________ - -------------------67.5 cents -- _ ____________________
72.5 cents__________________________

11.5
12.5
13.9
10.8
8.2

11.4
12.7
14.7
11.7
8.7

3.8
5.9
8.9
11.7
11.4

8.9
11.3
15.5
13.7
10.7

19.7
18.5
15.7
8.1
3.8

12.1
9.8
4.7
1.4
2.4

72.5 and
77.5 and
82.5 and
87.5 and

under 77.5 cents----------- -------------- --------under 82.5 cents----------- - ----------------------under 87.5 cents*. - -------------- ----------------under 92.5 cen ts...
- - ___
- -------

6.1
5.1
3.2
2.7
3.1

6.7
5.5
3.5
3.0
3.3

9.1
8.6
6.2
8.0
10.1

8.1
6.8
3.9
2.8
3.1

2.9
1.8
1.3
.8
.5

10C.0 and under 110.0 cents___ _ - ------- ---------------

2.3
1.0
.7
.2

2.5
1.1
.8
.3

7.4
2.6
2.0
.8

2.4
1.3
.9
.3

.2
.1
(*)
0)

T otal------------------ ---------- -------------------------

.3
.2
(>)

.1
.1

100.0

100.0

100.0

100.0

100.0

100.0

Number of workers (weighted)_____________________ 47,904

43,895

6,439

24,280

13,176

4,009

Average hourly earnings___________ _____ ___ _____ - $0.623

$0.638

$0,773

$0.656

$0, 538

$0.445

i Less than a tenth of 1 percent.
n These proportions are based on the weighted number of workers.


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Wages and Hours of Labor

957

VARIATIONS BY SEX AND SKILL

Leather manufacturing is largely a man’s industry. In contrast
with many other industries that have been mechanized extensively,
women constitute only a minor fraction of the wage earners in this
industry. Taking the industry as a whole, only one-twelfth of the
total labor force were women. The proportion of females, however,
varied conspicuously in the different divisions of the industry. Vir­
tually no women were employed in the plants manufacturing sole and
belting and glove leather, but 18.3 percent of the workers found in the
kid-leather plants and 17.0 percent of those employed in calf-upper
plants were females. Even in the branches where females were rela­
tively numerous, their employment was largely restricted to the
finishing departments. No females were found in the southern
establishments.
Converting raw hides and skins into leather is one of the oldest
processes known to man. The principal objective is to preserve the
material and at the same time to give it certain desired physical
properties. For some purposes, such as gloves, the requisite qualities
are softness, flexibility, and porosity. Firmness, thickness, and dur­
ability, on the other hand, are the properties needed in high-quality
sole and belting leather. To bring out the desired qualities formerly
required craftsmen with an intimate knowledge of leather and the
treatment of leather. At the present, however, the processes
involved are largely chemically controlled, and modern machinery has
displaced all except a relatively small remnant of the highly skilled
craftsmen.
In spite of the progressive decline in the demand for highly skilled
craftsmen in the leather industry, a few machine operations still require
a high degree of manual dexterity. This is due largely to the fact
that very few of the machines now used in making leather are com­
pletely automatic. As shown by this survey, skilled males constituted
over one-eighth of the total workers in the industry. Most of the
females were semiskilled employees. The semiskilled males consti­
tuted approximately one-half, while the unskilled males accounted for
over one-fourth of the total labor force.
The dispersion of hourly earnings in the leather industry may be
explained in part by the sharply contrasting wage levels among the
different groups of employees. For male workers, the averages were
77.3 cents for skilled, 65.6 cents for semiskilled, and 53.8 cents for
unskilled. Hence, the difference between skilled and semiskilled was
about the same as that between semiskilled and unskilled employees.
The female workers averaged 44.5 cents, or 9.3 cents less than the
average of the unskilled males.


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958

Monthly Labor Review—April 1940

An outstanding feature of the distribution of individual hourly
earnings is the relatively small proportion of the more important
groups of employees in the low-wage classes. Among semiskilled
males, numerically the largest single group, only 2.4 percent of the
total were found below the 40-cent level. Moreover, hourly earnings
of this amount or less are shown for only 1.0 percent of the skilled
and no more than 7.5 percent of the unskilled males. On the other
hand, 28.7 percent of the females were paid under 40 cents, but it
must be remembered that this is the smallest group of workers in the
industry.
Among each of the more important groups of employees, a fairly
generous scattering is found in the upper wage classes. Thus, earnings
of 82.5 cents an hour and over are shown for more than one-third
(37.1 percent) of the skilled and over one-seventh (14.7 percent) of
the semiskilled males. Even among the unskilled males, the hourly
earnings of a small minority (2.9 percent) amounted to 82.5 cents and
over. By contrast, hardly any females received that figure and above.
Hourly earnings in excess of $1 were confined largely to the skilled
and semiskilled males, the respective proportions amounting to 12.8
and 4.9 percent.
G E O G R A PH IC A L D IF F E R E N C E S

Under the NRA, the code for the leather industry provided for
two regions with respect to wages. One was the Southern area, includ­
ing Maryland, West Virginia, Virginia, Kentucky, Tennessee, North
Carolina, South Carolina, Georgia, Alabama, Mississippi, Florida,
Arkansas, Louisiana, Oklahoma, Texas, New Mexico, and Arizona.
For these States, the minimum rate set was 32.5 cents an hour. For
the remainder of the United States, covering the Northern and Western
States, the minimum was 35 cents for females and 40 cents for males.
Generally speaking, there is a difference in the wage levels of these
two areas. Of the Southern States mentioned in the code, the survey
covered Maryland, West Virginia, Virginia, Tennessee, North Caro­
lina, Georgia, and Texas, as the other States either had no establish­
ments or had none of any importance in the leather industry. These
seven States, which employed 6.9 percent of the total wage earners in
the industry, had a considerably lower wage level on the whole than that
found in the Northern States, despite the fact that no females were em­
ployed in the plants covered by the survey in the Southern region.
The wage level in the Southern States, however, was by no means
uniform. In fact, these States may be divided into two districts, each
of which had a different wage level. One district (including Tennes­
see, North Carolina, Georgia, and Texas) may, for the sake of con­
venience, be termed the Lower Southern States. These States gen­
erally showed the lowest hourly earnings, as evidenced by an examina­
tion of the averages of the various establishments. Thus, all but one

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Wages and Hours of Labor

959

of the plants covered here by the survey averaged less than 45 cents,
while all of the establishments in the industry with an average under
35 cents were in this district. The other district (including West
Virginia, Maryland, and Virginia) may be designated as the Border
States. A somewhat higher wage level generally prevailed in this
district. With one exception, the averages of the plants included by
the survey in these States fell within a relatively narrow range,
between 45 and 50 cents.
The wage level of these Border States overlaps with that of the
Northern States. Thus, there are individual establishments in a
number of Northern States with average hourly earnings of less than 45
cents. These are exceptional plants, however, asalarge proportion of the
northern plants have average hourly earnings of more than 50 cents.
Although the general wage level in the northern region is substantially
higher than that in either of the two southern wage districts, hourly
earnings in the North show less concentration. Broadly speaking,
hourly earnings in this area varied considerably even within a single
State. This was especially true of the more important States. In
Massachusetts, for example, the averages of the plants covered in the
survey ranged from 37 to 83 cents, although most of the establishments
averaged between 60 and 80 cents. In Pennsylvania, the plant
averages covered a spread from 39 to 71 cents, with the majority of
establishments concentrated between 50 and 70 cents. The range of
plant averages in New York State was from 52 to 99 cents, but most
of the establishments averaged between 65 and 85 cents. A similar
dispersion was found in other States having a substantial number of
plants, such as Delaware, Illinois, New Jersey, and Wisconsin.
With hourly earnings in the northern region differing considerably
in most instances within a single State, it is obviously difficult to
conceive here of homogeneous wage districts that are composed of
more than one State. The three districts that are shown in this report
represent more or less arbitrary groupings of States that correspond to
areas that the trade frequently regards as competing producing areas.
These groupings include plants surveyed in the New England, Middle
Atlantic, and Middle Western States, respectively. The New England
States covered in the survey included Massachusetts, New Hampshire,
and Connecticut. Delaware was added to the Middle Atlantic States
which, under the Bureau of the Census classification, include New
York, New Jersey, and Pennsylvania. The Middle Western States,
as used in the present survey include not only the East North Central
States (Ohio, Michigan, Indiana, Illinois, and Wisconsin), as defined
by the Bureau of the Census, but also Minnesota, Missouri, and Cali­
fornia. Each of these groups of States is important, accounting re­
spectively for 23.2, 38.0, and 31.9 percent of the total workers in the
industry.
2 1 7593— 40-------12


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Monthly Labor Review—April 1940

960

The differences in the wage structure of these three districts are not
sufficient for them to be regarded as distinctive wage areas. The most
concentrated distribution of hourly earnings is found in the Middle
Western States (including California). Only 2.9 percent of the workers
received less than 40 cents, and 2.6 percent were paid more than 92.5
cents. On the other hand, more than two-thirds (67.7 percent)
earned 47.5 to 72.5 cents. The average for all workers was 62.0 cents,
while most establishments averaged less than 65 cents. (See table 4.)
T able 4.—Percentage Distribution of Leather Workers, by Average Hourly Earnings,
Sex, and District, September 1939

Average hourly earnings

Fem ales1

Males

All workers

M id­
M id­
M id­
dle
dle
dle
W est­
W est­
W
est­
M id­ ern
ern
M
id­
ern
M
id­
N ew
New
N ew dle
in­
in­ South­ Eng­ dle
in­ South­ Eng­ dle
Eng­ At­ clud­
clud­
A
t­
ern
clud­
ern
A t­
land lantic ing
land lantic
land lantic ing
ing
Cali­
Cali­
Cali­
for­
for­
for­
nia
nia
nia
(2)
0.1
(2)
.1
.6

(2)
0.4
.2
.4
.3

5.0
2.4
1.8
4.1

0.1
.4
.2
.2
.4

(2)
0.1
(2)
.1
.4

0.1

27.5 and under 30.0 cents...........
30.0 and under 32.5 cents--------

0 1
.4
3
.3
.5

32.5 and
35.0 and
37.5 and
40.0 and
42.5 and

under
under
under
under
under

35.0 cents...........
37.5 cents_____
40.0 cents- - . -_
42.5 cents_____
47.5 c e n ts ..-

.2
1.9
.9
7.8
6.6

.5
2.7
1.0
5.1
6.6

.2
.8
.6
3.6
6.7

6.5
1.6
6.5
9.6
18.2

.1
.8
.5
4.6
4.8

.2
.7
.5
3.5
6.0

47.5 and
52.5 and
57.5 and
62.5 and
67.5 and

under
under
under
under
under

52.5 cents_____
57.5 cents_____
62.5 cents_____
67.5 cents_____
72.5 cents_____

9.9
10.4
12.2
10.1
7.0

12.4 11.0
12.5 13.5
12. C 18.1
10.2 13.7
7.1 11.4

12.5
13.1
9.8
3.9
3.6

9.9
10.2
13.2
11.4
7.7

77.5 and
82.5 and
87.5 and
92.5 and

under
under
under
under

82.5 cents_____
87.5 cents_____
92.5 cents_____
100.0 cents____

6 2
5.6
3.8
4.2
4.6

6.9
5.8
3.5
2.8
4.1

6. 4
4.9
3.0
2.2
1.3

.5
.2
.2
.2
.1

4.4
1.8
7
!i

2.7
1.4
L^
.5

.8
.2
.2
.i

.1
.1

100.0 and under 110.0 cents___
110.0 and under 125.0 cents___

T otal_________________
Number of workers (weighted).

.1

5.6
2.4
1.8
4.1

0.2
.8
1.0
1.1

0.5
2.3

4.7
2.2
3.6
2.9

.1
.3
.4
2.7
5.7

6.5
1.6
6.5
9.6
18.2

1.1
10.6
3.5
32.5
20.7

5.0
29.4
7.4
25.1
14.6

1.2
6. 4
2.8
12.2
16.9

12.9
13.5
12.6
10.9
7.5

10.2
13.3
19.1
14.7
12.3

12.5
13.1
9.8
3.9
3.6

10.5
12.2
3.5
.3
1.8

6.6
1. 5
3.8
.9
2.0

18.4
14.9
6.6
2.8
3.2

7.0
6.4
4.2
4.8
5.2

7.4
6.2
3.8
2.9
4. 4

7.0
5.4
3.3
2.4
1.5

5.0
2.0

2.8
1.5
1.5
.6

.9
.2
.2
.1

.i

.1

.5
.2
.2
.2 —
.1

.2

.1 ________
.1

.8
.3
.1

________

.4

—

.5

________

100.0 100.0 100.0

100.0 100.0 100.0 100.0

100.0 100.0 100.0 100.0

TiM 18, 227 15,277

3,302 9,823 16,939 13,831

3,302 1,275 1, 288 1,446

Average hourly earnings—........ $0.645 $0. 642 $0.620 $0.461 $0,670 $0.658 $0,635! $0,461 $0.447 $0.417 $0.467
1 No females were employed in plants covered in survey in Southern States.
2 Less than a tenth of 1 percent.

The difference between the average hourly earnings for the Middle
Western States and that of 64.2 cents in the Middle Atlantic States
(including Delaware) arises primarily from the fact that 10.1 percent
of the workers in the Middle Atlantic area received more than 92.5
cents. These high earnings, found for the most part in New York
State, raised the general average, in spite of the fact that a larger
proportion of the workers earned less than 40 cents in this area than

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Wages and Hours of Labor

961

in the Middle Western States. There is a considerable contrast in
the wage level of New York and New Jersey and of Pennsylvania
and Delaware. The averages were 71.6 cents in New York and 68.4
cents in New Jersey, which may be compared with 61.2 cents in
Pennsylvania and 53.7 cents in Delaware.
The fundamental differences in wage structure in the Northern
States occur not between broad subregions within this area, but in
the contrasting wage structures of small districts and of individual
plants. On a regional basis, the only comparison that is warranted
is that shown in table 5 between the Northern States as one group
and the Southern States as another. The average hourly earnings of
all males in the entire Northern region amounted to 65.3 cents, which
may be compared with 46.1 cents for the entire Southern region.13 In
the Northern States, there were 1.9 percent of the total paid below 40
cents, and 15.6 percent received 82.5 cents and over. In the Southern
States, by contrast, the respective figures were 27.9 and 0.7 percent.
Table 5.

Percentage Distribution of Leather Workers, by Average Hourly Earnings,
Region, Sex, and Skill, September 1939
Northern States

Average hourly earnings
(in cents)

Under 25.0____________
Exactly 25.0___________
25.1 and under 27.5_______
27.5 and under 30.0_______
30.0 and under 32.5_______

All
work­
ers Total

(2)

0.3
.1
.2
.5

(2)

0.2
.]
.1
.3

Southern States 1

Males

Males
All
Fe­
work­
Semi­ Un­ males ers
Skilled skilled
Total Skilled Semi­ Un­
skilled
skilled skilled

(2)

0.1

0.1
.4

5.0
2 4
18
4 1

0.6

0.2

11.9

.2

1.7
10
i a
2 1

5.0

2
JS

(2)
0.5
1.2

.3
.2
2.5
4.1

4
1.3
1.1
7.1
10.6

24
15.2
4.5
22.8
17.4

1.6
6.5
9.6
18.2

1.6
6.5
9.6
18.2

4.1
4.8
4.4
13.0

1.6
5.5
6.2
20.0

1.0
8.0
15.0
17.1

12.1
9.8
4.7
1.4
2.4

12.5
13.1
9.8
3.9
3.6

12.5
13.1
9.8
3.9
3.6

10.2
10.5
8.3
8.6
15.0

12.8
14.2
12.5
6.0
4.1

12.7
12.6
7.0
.4
.3

.3
.2

.5
.2
.2
.2
.1

.5
.2
.2
.2
.1

5.4
.6
2. 2
1.6
.6

.1
.1

.1

.1

.6
.6

100.0 100.0 100.0 100.0

100.0

100.0

100.0

6,124 22,639 11,830 4,009 3,302 3, 302

315

1,641

1,346

(2)
(2)

32.5 and under 35.0_______
35.0 and under 37.5_______
37.5 and under 40.0_______
40.0 and under 42.5___ _
42.5 and under 47.5_______

.3
1.9
.8
5.2
6.6

.1
.6
.5
3.5
5.6

47.5 and under 52.5_______
52.5 and under 57.5_______
57.5 and undei 62.5_______
62.5 and under 67.5_______
67.5 and under 72.5_____

11.3
12.4
14.2
11.4
8.5

11.3
12.5
14.9
12.3
9.2

3.5
5.7
8.9
11.9
11.3

8.6
11.1
15.8
14.3
11.2

20.3
19.1
16.6
9.0
4.2

72.5 and under 77.5_______
77.5 and under 82.5_____
82.5 and under 87.5........... .
87.5 and under 92.5_____
92.5 and under 100.0........

6.6
5.4
3.4
2.9
3.3

7.2
6.0
3.7
3.2
3.6

9.3
9.0
6.4
8.3
10.6

8.6
7.2
4.2
3.0
3.3

3.3
2.0
1.5
.9
.6

100.0 and under 110.0_____
110.0 and under 125.0_____
125.0 and under 150.0... . .
150.0 cents and over_____

2.5
1.1
.8
.3

2.7
1.2
.9
.3

7.8
2.7
2.1
.8

2.6
1.4
1.0
.3

.2
.1

Total______________ 100.0 100.0

100.0

100.0

Number o f w o r k e r s
(weighted)_____ _______ 44,602 40,593

(2)

(2)

(2)

.1

.1

(2)

2
.l

(2)

Average hourly earnings... J$0,635 $0. 653 $0. 784 $0,669 $0. 552 $0.445 $0.461 $0.461 $0. 555 $0.478 $0.417
1 There were no female workers in the plants covered in survey in the Southern States.
2 Less than a tenth of 1 percent.
13 There were no female workers in the southern plants.
and Southern States must be confined to male workers.


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Hence, the comparison between the Northern

Monthly Labor Review—April 1940

962

As mentioned previously, the NRA code minima were 35 cents
for females and 40 cents for males in the Northern States. It is
interesting to note that at the time of the survey (September 1939)
there were 9.0 percent of the females earning under 35 cents and 1.9
percent of the males receiving less than 40 cents in this region. The
southern code minimum was 32.5 cents for both sexes, although no
females were employed in the plants surveyed. In this region 13.3
percent of the males earned less than 32.5 cents. In connection with
the above minima, however, it should be pointed out that the code
permitted certain tolerances for learners and aged or handicapped
workers, neither class to exceed 5 percent of all workers on the pay
roll in a given plant.
HOURLY EARNINGS IN RELATION TO FAIR LABOR STANDARDS ACT

From the preceding tables, it is evident that in September 1939
hardly any of the wage earners in the leather industry were paid
below the minimum of 25 cents an hour, which was in effect at that
time in accordance with the provisions of the Fair Labor Standards
Act of 1938. Moreover, an insignificant proportion of all workers,
namely 0.6 percent, received exactly 25 cents. In fact, the relative
size of this group was important only for the few plants in the Southern
States, where 5.0 percent of the total earned exactly that figure.
The 30-cent hourly minimum, under the provisions of the Fair
Labor Standards Act, became effective on October 24, 1939, or shortly
after the survey was made. Even this minimum evidently resulted
in no more than minor readjustments in the industry’s wage structure.
At the time of the survey, only 1.2 percent of all wage earners em­
ployed in the industry earned less than 30 cents an hour. In this
respect, too, the only region affected relatively to any extent is that
including the Southern States, where 9.2 percent of the total workers
received below 30 cents.
In accordance with the Fair Labor Standards Act, it is possible
for the Administrator, upon the recommendation of an industry com­
mittee, to set an hourly minimum in excess of 30 cents but not to
exceed 40 cents. Taking the highest minimum that might be set
under the act, namely 40 cents an hour, there were 5.8 percent of all
workers in the industry earning below that figure. The proportion
was 3.6 percent for males (1.0 percent for skilled, 2.4 percent for semi­
skilled, and 7.5 percent for unskilled), which may be compared with
28.7 percent for females. On a geographical basis, the corresponding
proportions for all wage earners were 4.6 percent in the New England
States, 5.0 percent in the Middle Atlantic States, 2.9 percent in the
Middle Western States (including California), and as much as 27.9
percent in the Southern States.


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Images and Hours oj Labor

963

The effect of the Fair Labor Standards Act upon groups of plants
haying approximately the same wage level may be seen from table 6.
In the few lowest-paid establishments, namely those averaging under
35 cents an hour, as many as 25.4 percent of all workers earned exactly
25 cents, and 46.7 percent received less than 30 cents. All of these
plants, it should be remembered, were in the lower Southern States.
None of the other groups of establishments was affected to any extent
by the 30-cent minimum. The impact of the 30-cent minimum was
therefore largely confined to plants employing less than 1% percent of
the workers in the industry. On the other hand, a 40-cent minimum
would affect not only the lowest-paid plants but also those in other
wage classes. In the lowest-paid establishments, all but 7.9 percent
of the wage earners were paid below 40 cents. For plants averaging
between 35 and 45 cents the proportion was 36.2 percent, as com­
pared with 15.7 percent for those with averages between 45 and 50
cents, 9.0 percent for those averaging between 50 and 55 cents, and
4.5 percent for those with averages between 55 and 60 cents. All four
of these groups of establishments were scattered geographically. None
of the other groups of plants would be affected much by a 40-cent
minimum.
T

a b l e

6.

—Percentage Distribution of Leather Workers by Average Hourly Earnings and
by Groups of Plants, September 1939
Plants having average hourly earnings of—

Average hourly earnings

45
35
50
55
60
65
70
75
Under and
and
and
and
and
and
and
and
35
under under under under under under under under
cents
45
50
55
60
65
70
75
80
cents cents cents cents cents cents cents cents

Under 25.0 cents _____
Exactly 25.0 cents________
25.1 and under 27.5 cents
27.5 and under 30.0 cents
30.0 and under 32.5 cents. ..

25.4
12.2
9.1
19.2

2.2
.3
.1
5.2

0.3
.3
.4
1.0

0.1
.7
.5
.5
1.4

(i)
0.6
.2
.5
.4

0)

32.5 and under 35.0 cents. . .
35.0 and under 37.5 cents____
37.5 and under 40.0 cents........
40.0 and under 42.5 cents____
42.5 and under 47.5 cents. . .

19.6
5.1
1.5
2.5
2.2

10.7
11.1
6.6
31.5
10.9

1.8
6.6
5.3
18.5
24.2

.5
3.6
1.7
13.9
14.7

.1
2.3
.4
2.4
6.5

.3
.5
.4
3.5
5.1

.5
.8
.3
.2
.8

8.2
6.4
4.3
.8
.3

18.3
9.8
4.5
1.9
3.3

20.2
12.1
13.7
7.6
3.9

17.3
22.8
17.7
13.6
6.9

.3

1.0
.2

.3

.2

.8
.4
.5
.9
.6

3.0
.9
.4
.3
.2

.4
.2

.i

0)

47.5 and
52.5 and
57.5 and
62.5 and
67.5 and

under 52.5 cents___
under 57.5 cents
under 62.5 cents____
under 67.5 cen ts.. . .
under 72.5 cents____

72.5 and
77.5 and
82.5 and
87.5 and
92.5 and

under 77.5 cents.
under 82.5 cen ts.. .
under 87.5 cents____
under 92.5 cen ts.. .
under 100.0 c e n ts ...

100.0 and under 110.0 c e n ts ...
110.0 and under 125.0 cen ts..
125.0 and under 150.0 cents.
150.0 cents and over______
T o ta l... __________

0.1

(0

6. i

.1

0.3

.6
.8
5.5
5.8

(i)
0.1
1. 9
.7
5.5

2
.4
2.4
2.1

.8

9.9
11.0
18.7
15.9
14.6

7.0
8.7
9.4
10.5
9.4

7.4
7.4
11.6
12.0
8.2

3.4
8.3
13.1
9.3
8.7

3 5
5.0
18. 3
7. 3
6.7

3 1
2.3
1.5
.8
.2

7 7
5.1
2.7
2.1
.6

12 9,

9.8
ft 2
3.7
ft 3

9.6
ft 4
4. 2
Q2

8.7

6. 2

8. 6

4.6

.3
.1

1.1
1
.5
(>)

2,1

4 9

10

1 ft

ft ft

.6
.2

15
(>)

1 ft

.6

7 8
3.8

(>)

(0

(>)

3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

647

972

3,538

4,188 11,632

8,494

6,293

5,057

5,504

1,579

Number of workers (weighted)_________ ___________
i Less than a tenth of 1 percent.


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0)
0.1
.1

80
cents
and
over

964

Monthly Labor Review—April 1940
D IF F E R E N C E S B E T W E E N U N IO N A N D N O N U N IO N P L A N T S

Unionism has existed in the leather industry for many years. At
the time of the survey, approximately one-fourth of the workers were
employed in union 14 establishments. Several important unions are
active in the industry. One is the International Fur and Leather
Workers of the United States and Canada (formerly the National
Leather Workers Association), which is affiliated with the Congress
of Industrial Organizations. Another is the United Leather Workers
International Union, an affiliate of the American Federation of Labor.
In the Johnstown-Gloversville area in New York State, the dominant
union is the Independent Leather Workers Union of Fulton County,
N. Y., which is not affiliated with either the C. I. O. or A. F. of L. On
the Pacific Coast, moreover, several establishments have agreements
with the Amalgamated Meat Cutters and Butcher Workmen of
North America.
The union establishments were prevalent in some of the important
producing centers in the industry. A substantial number of plants
with union agreements was found in the Boston metropolitan area,
especially in Peabody and Woburn, Mass. Union establishments
were likewise concentrated in the Johnstown-Gloversville area, New­
ark, the Philadelphia-Camden area, and San Francisco. A few plants
with union agreements were also scattered throughout other parts of
the Northern States. Of the establishments covered in the survey,
none in the Southern States was found to have a union agreement.
For the most part, the union establishments in the Northern States
were in communities with a population between 20,000 and 100,000
and in metropolitan areas with 1,000,000 and over, so that any com­
parison between union and nonunion plants must be confined to these
two classes of communities. As may be seen from table 7, the average
hourly earnings of all workers were higher in union than nonunion
establishments in each case, the difference amounting to 14.2 cents in
communities between 20,000 and 100,000, but only 2.4 cents in metro­
politan areas with 1,000,000 and over. Differences also appear for
each skill group among the males. The only comparison for females is
in metropolitan areas of 1,000,000 and over, where the hourly earnings
in both union and nonunion plants averaged approximately the same.
i4 \ s defined in this survey, a union establishment is one in which the majority of employees are covered
by either a written or oral agreement with an affiliated union. Plants with an employee organization con­
fined to only one company are included with the nonunion establishments. There were relatively few such
plants, although they covered a substantial number of workers in the industry.


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965

Wages and Hours of Labor

T able 7.—Average Hourly Earnings of Leather Workers in the Northern Region, by
Size of Community, Unionization, Sex, and Skill, September 1939
Number of workers (weighted)

Average hourly earnings

Population of com­
Males
Males
m unity and un­ All
All
ionization
Fe­ work­
Fe­
work­
ers Total Skilled Semi­ Un­ males ers Total Skilled Semi­ Un­ males
skilled skilled
skilled skilled
20,000 and under
100,000:
Union p la n ts--.
N onunion
plants ______
1,000,000 and over:
Union plants - .
Nonunion
plants___ - -

1,252 1,216

111

796

309

4,698 4,456

571

2,860

1,025

36 $0. 774 $0. 785 $0.818 $0.862 $0. 590

9,099 8,019

1,345

4, 545

2,129 1,080

.691

.722

.872

.746

.572

.462

10,554 9,734

1,915

5,169

2,650

.667

.683

.853

.684

.558

.463

242

820

.632

.640

.694

.658

(>)

.560 $0. 471

1 N ot a sufficient coverage to permit the presentation of an average.
V A R IA T IO N S B Y SIZE O F C O M M U N ITY ls

The leather industry is concentrated to a marked extent in the large
industrial communities. In terms of employment, 41.0 percent of the
total workers were located in metropolitan areas with a population of
1,000,000 and over. One-fourth (25.3 percent) were found in medium­
sized communities, namely, those between 100,000 and 1,000,000,
while one-third (33.7 percent) were in places under 100,000.
There was no consistent relationship between hourly earnings and
size of community. Average hourly earnings for nonunion plants in
the North were 55.7 cents in places under 10,000, 60.8 cents in com­
munities between 10,000 and 20,000, and 63.2 cents in communities of
20.000 to 100,000. This seems to indicate a progression of hourly
earnings with size of community. On the other hand, in communities
of 100,000 to 250,000, the average was 60.9 cents, while in those with a
population of 250,000 to 1,000,000 the average was 56.6 cents, or no
higher than the figure in the smallest communities studied. In the
metropolitan centers of more than 1,000,000, the average for nonunion
plants was 66.7 cents.
Among union plants, as has already been pointed out, higher aver­
ages prevailed in communities with a population between 20,000 and
100.000 than in metropolitan areas of 1,000,000 and over, the respec­
tive figures amounting to 77.4 and 69.1 cents. It should be pointed
out, however, that nearly all of the union establishments in places be­
tween 20,000 and 100,000 were located in the Johnstown-Gloversville
area, which reported an exceptionally high wage level.
15
B y size of community is meant here the size of metropolitan area within which the plant is located.
For places with a population of 100,000 or more, the Bureau utilized the metropolitan districts as defined by
the U . S. Bureau of the Census. On the other hand, for communities with less than 100,000, similar metro­
politan centers were set up, including not only the population within a particular political subdivision but
also that of the nearby areas. Roughly speaking, the metropolitan districts correspond to labor-market
areas, within which there is competition among workers for jobs as well as among employers for workers.


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966

Monthly Labor Review—April 1940

Owing to the fact that only a small part of the industry was located
in the Southern States, the coverage here was not sufficiently large to
permit an analysis of the data by size of community.
P R O D U C T D IF F E R E N C E S

Thus far, the analysis has been on the basis of leather manufacturing
as a whole, in order to determine the part played in shaping the indus­
try’s wage structure by various factors, such as the composition of the
labor force as to sex and skill, geographical location, unionization, and
size of community. From the competitive standpoint, however, it is
important to view differences in wages on the basis of either individual
products or groups of products which are manufactured by the various
plants in the industry.
As already indicated, a wide variety of separate products^is manu­
factured in the leather industry. Any classification of the wage data
on a product basis, however, must be more or less arbitrary. This is
due to the fact that numerous establishments are engaged in making
more than one product. Such plants were here classified on the basis
of the value of the predominating product. On the other hand, there
are many establishments that specialize in the manufacture of a single
product.
In terms of employment, the most important productjmthe indus­
try is side upper leather, with approximately one-third (32.7 percent)
of the total wage earners working primarily on this product. Ex­
actly one-fifth of the employees worked largely on sole and belting
leather, while kid upper and calf upper leather accounted respectively
for 12.9 and 7.9 percent. Only 2.5 percent of the wage earners worked
primarily on glove leather, but as many as 11.6 percent were mainly
engaged in the making of other sheepskin leather. The miscellaneous
group of leather contains a variety of products, each of which ac­
counted for a small number of employees, with the total group in­
cluding 12.4 percent of all workers in the industry.
The lowest hourly earnings in the industry generally prevailed
among plants making primarily sole and belting leather. Several
factors are responsible for this situation. First, although hardly any
females (0.1 percent) were found in these establishments, these plants
showed relatively few (9.7 percent) skilled males, with substantial
proportions of semiskilled (47.0 percent) and unskilled (43.2 percent)
males (see table 8) ; second, although the plants are widely scattered
geographically, a significant number is located in the Southern States ;
third, very few of the establishments were unionized; lastly, many of
the plants are in the smaller communities, especially in western
Pennsylvania and the Southern States.


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Wages and Hours of Labor
T a b l e 8 .—Average

967

Hourly Earnings of Leather Workers by Product, Sex, and Skill,
September 1939
Males
All
workers

Product

Total

Semi­
Skilled skilled

Un­

Fe­
males

skilled

Number of workers (weighted)
All products. _____ ________ ________________

_____ 47,904

Side upper leather1_____________________________
Sole, including belting, leather_____________________
Kid upper leather________ ___________________ __
Calf upper leather____________________ . . .
Glove leather2___________________ . . . . . .
Other sheepskin leather______________________ .
Miscellaneous leather___________ _____ ____________

15, 611
9, 579
6,170
3, 774
1, 220
5, 568
5,982

43,895

6,439

24, 280

13,176

4,009

14,376
9, 573
5,041
3,133
1, 220
4,868
5,684

1,768
933
1, 448
699
126
579
886

8,842
4, 503
2,335
1, 756
789
2,977
3,078

3,766
4,137
1,258
678
305
1,312
1, 720

1,235
6
1,129
641
700
298

Percent of workers
All products________ •________________

________

Side upper leather 1______ ____ __________________
Sole, including belting, leather_________________ .
Kid upper leather_____________ _ ________________
C alf upper leather_____ ________________ ____ _ .
Glove leather 2 ________________ _____
Other sheepskin leather_______ _______ . . . .
Miscellaneous leather__________________________

100.0

91.6

13.4

50.7

27.5

8.4

100.0
100.0
100.0
100.0
100. 0
100.0
100.0

92.1
99.9
81.7
83.0
100. 0
87.4
95.0

11.3
9.7
23.5
18.5
10.3
10.4
14.8

56.7
47.0
37.8
46.5
64 7
53.4
51.4

24.1
43.2
20.4
18.0
25. 0
23.6
28.8

7.9
.1
18.3
17.0
12.6
5.0

Average hourly earnings
All produ cts... ________________
Side upper leather 1____________ ____ ______________
Sole, including belting, leather____________________
Kid upper leather_______________________ ____ ____
Calf upper leather.________ ____________________ . .
Glove leather 2___________ _____________________
Other sheepskin leather_______________ __________
Miscellaneous le a th e r _______________________ . . .

$0. 623

$0.638

$0. 773

$0.656

$0. 538

$0. 445

.632
.567
.632
.723
.827
.596
.608

.647
.567
.680
.766
. 827
.615
.616

.744
.649
.865
.884
.831
.702
.780

.662
.584
.649
.766
t 927
.642
.640

.566
.528
.523
.638
. 598
.512
.489

.442
(3)
.411
.507
.453
.432

1 Includes integrated plants engaged in both tanning and finishing of patent leather.
2 Includes sheep, kid, “ cabretta” , and cape glove leather.
3 N ot a sufficient number of workers to permit the presentation of an average.
* For an explanation regarding this figure, see p. 969.

The average hourly earnings of all workers in establishments
manufacturing primarily side upper leather were 63.2 cents. With
a few exceptions, the averages of the plants covered in the survey
ranged between 55 and 80 cents. The highest wage level was found
in the Peabody-Woburn area, which is an important district for this
product. As stated above, this area is highly unionized and all but
one of its establishments averaged above 75 cents or considerably
higher than other New England plants. Another important district
includes the Middle Western States, where establishments engaged
mainly in the making of side upper leather have grown up as a result
of proximity to the meat-packing industry. Compared to the
Peabody-Woburn area, however, hourly earnings in this district were
substantially lower, with all but one plant averaging below 65 cents.
In the Middle Atlantic States, where this product is also of impor­
tance, the averages of all but one of the establishments ranged between
65 and 75 cents.

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968

Monthly Labor Review—April 1940

As with side upper leather, the average hourly earnings of all
workers in plants making kid upper leather amounted to 63.2 cents.
The composition of the labor force, however, in these plants was
considerably different from that in the side upper plants. Thus, in
establishments producing kid upper leather, there were 23.5 percent
skilled, 37.8 percent semiskilled, and 20.4 percent unskilled males,
and 18.3 percent females. Moreover, skilled males in kid upper
leather averaged more than those working primarily on side upper
leather, but the opposite was true of semiskilled and unskilled males
and all females. The two most important producing centers in kid
upper leather are Philadelphia and Wilmington, with the former
having a much higher wage level than the latter. For plants covered
in the survey, the averages ranged from 59 to 73 cents in Phila­
delphia and from 49 to 58 cents in Wilmington. Very few establish­
ments making kid upper leather were unionized at time of survey.
A somewhat higher wage level than in sole and belting leather was
found in establishments making largely side upper leather. One
reason for this is that plants producing side upper leather are prac­
tically all located in the Northern States. Another reason is the
existence of a larger number of union establishments, which were
found for the most part in the Peabody-Woburn area of Massa­
chusetts. The majority of plants are also in the larger metropolitan
areas. As regards composition of labor force, there were only 11.3
percent skilled males, as compared with 56.7 percent semiskilled and
24.1 percent unskilled males and 7.9 percent females.
For all workers in establishments producing primarily sole and
belting leather, the average hourly earnings amounted to 56.7 cents.
Taking the plants covered in the survey, the averages ranged from
31 to 79 cents. In spite of this wide dispersion, there were several
fairly homogeneous wage areas in connection with this product.
One of these comprises the Lower Southern States, in which all but
one establishment averaged below 35 cents. Another includes the
Border States, where the plant averages covered a range between
45 and 55 cents. A third consists of the small towns in western
Pennsylvania, with most establishments averaging between 55 and
60 cents. This district is especially important in the manufacture of
sole and belting leather. Plants making sole and belting leather are
also located in the New England States, the Middle Atlantic States
outside of western Pennsylvania, and the Middle Western States,
including California. In each case, the hourly earnings varied con­
siderably, with most plant averages being above 60 cents, especially
in the metropolitan areas of Boston and San Francisco.
For all workers in plants engaged mainly in the production of calf
upper leather, the average hourly earnings were 72.3 cents. In these
establishments, the composition of the labor force as to sex and skill

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Images and Hours of Labor

969

was very similar to that found in plants manufacturing kid upper
leather. On the other hand, the hourly earnings in establishments
working primarily on calf upper leather averaged higher than those
in kid upper leather for each skill-sex group. Some of the plants
making largely calf upper leather are found in Peabody, while others
are scattered throughout the Middle Atlantic and Middle Western
States. In the Peabody establishments, moreover, the hourly earn­
ings averaged considerably more than those in other parts of the
country. Some of the plants were unionized, and most of them are
located in the larger communities.
Establishments making fine glove leather are for the'm ost part
in the Johns to wn-Gloversville area of New York. Furthermore, by
far the great majority of these plants were unionized. With few
exceptions, the various establishments covered in the survey showed
average hourly earnings of over 80 cents. For all workers, the
average amounted to 82.7 cents. It will be observed, however, that
this average is largely influenced by the high hourly earnings of
semiskilled males, who constituted 64.7 percent of the total labor
force.16 These semiskilled males averaged 92.7 cents, which is even
higher than the average of skilled males. In this connection, it is to
be noted that almost three-fourths of the semiskilled males were on
piece work, as against only about one-eighth of the skilled males.
The hourly earnings of semiskilled males on glove leather averaged
higher than those on any product for which separate figures are
shown, although this was not true of the skilled and unskilled males.
The “other sheepskin leather’’ group includes not only sheep and
kid garment leather, but also such other sheepskin leather products
as are used for hat sweatbands, textile rollers, shoe linings, etc.
Although the average hourly earnings of the plants covered by the
survey in this group ranged from 44 to 77 cents, most of the estab­
lishments averaged between 60 and 72 cents. A considerable number
of the plants had union agreements. Geographically, most of the
establishments were located along the Atlantic coast, due to the
fact that sheep and kid skins are largely imported from abroad.
In the miscellaneous leather group, there is included an even
greater variety of products than is found in “other sheepskin leather.”
The miscellaneous group covers plants engaged in patent finishing or
embossed finishing, as well as those working on harness, upholstery,
fancy, luggage (bag, case, and strap), lacing, glove leathers other than
sheepskin (cowhide, horsehide, and pigskin), packing, textile machin­
ery, horsehide upper, and other leather. Some of these products
deserve special attention. Harness leather (including saddle, collar,
and skirting), for example, is unique in that it covers two competitive
16
There were only 10.3 percent skilled and 25.0 percent unskilled males.
of the establishments covered by the survey.


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Federal Reserve Bank of St. Louis

No females were reported in any

Monthly Labor Review—April 1940

970

areas, one embracingi]!for the most part the Middle Western States,
including California, and the other the Lower Southern States. The
wage level was not very high in either of these areas, although the
establishments in the Northern States averaged considerably more
than those in the Lower Southern States.17 Aside from harness
leather, practically all of the plants in the miscellaneous group were
located in the Northern States. Establishments manufacturing up­
holstery or fancy leather (found, for the most part, in the New York
City metropolitan area) had fairly high average hourly earnings.
Plants engaged in patent finishing, most of which are in the PeabodyWoburn area, also showed high hourly earnings. By contrast, es­
tablishments engaged in embossed finishing, which are scattered
throughout the Northern States, had a lower wage level. Many of
the above plants, especially patent finishing and fancy leather, had
union agreements.
Table 9 presents the distribution, in terms of simple percentages,
of individual earnings for each of the various product groups.
Table 9.—Percentage Distribution of Leather Workers by Average Hourly Earnings and
by Product, September 1939

Average hourly earnings

30.0 and under 32.5 cents--------------32.5 and under 35.0 cents__________
35.0 and under 37.5 cents--------------40.0 and under 42. 5 cents__________
42. 5 and under 47.5 cents---------------

Other
Side Sole, in­ Kid
Calf
Glove sheep­ Miscel­
upper cluding
Total leather* belting, upper upper leather2 skin laneous
leather leather
leather leather leather
0.1
.5
.4
.4
.8

0.1
2.8
.9
.1
.6

.1
.8

.2
1.8
1.3
9.8
11.3

2.0
3.0
1.8
5.8
8.6

(3)
0.6
.3
.3
.7

(3)
0.4
.3
.4
.4

(3)
0.2
.3
.7
1.8

0.2
(3)
.1
.4

0.1
.1

.8
1.9
1.2
5.5
7.4

.2
.7
1.6
2.8
5.1

1.2
.6
.6
5.7
9.9

.9
7.0
1.4
8.9
8.5

.4
.2
.3
6.0
3. 5

1.1
.3

0.2
.7

under
under
under
under
under

52.5 cents---- ----------57.5 cents........... .........
62. 5 c e n ts ........... .......
67. 5 cents_______ _
72.5 c en ts............—

11.5
12.5
13.9
10.8
8.2

11.5
12.6
15.7
13.7
11.1

16.9
19.5
13.5
10.9
6.5

10.6
7.0
10.0
7.4
5.9

4.0
10.4
8.8
11.1
7.8

2.1
4.5
20.1
8.1
6.9

12.9
10.8
12.3
9.4
6.1

8.2
10.6
16.8
8.8
8.2

72.5 and under
77.5 and under
82.5 and under
87.5 and under
92.5 and under

77.5 cents..
... ...
82.5 cents--------------87.5 c en ts...................
92.5 cents__________
100.0 cents............. ...

6.1
5.1
3.2
2.7
3.1

8.1
5.3
3.2
2.6
1.9

4.0
2.5
1.3
1.2
2.0

5.2
6.8
5.0
2.3
6.8

7.6
10.4
5.8
8.8
5.9

3.4
6.7
2.7
4. 5
4. 6

5.3
4. 5
3.9
2.5
2.7

5.9
3.7
1.8
2.0
2.3

100.0 and under 110.0 cents-----------110.0 and under 125.0 cents------------125.0 and under 150.0 cents-----------150.0 cents and over_______________

2.3
1.0
.7

1.4
.8
.2
(3)

.6
.1
(3)

3.6
1.1
.8
.1

5.8
1. 7
.9
.4

12.3
8.1
8. 9
3.9

1.7
.4
.8
.1

2.4
1.6
1.3
7

Total_______ ________ - ..........

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Number of workers (weighted)-------

47,904

15,611

9,579

6,170

3,774

1,220

5,568

5,982

47.5
52.5
57.5
62.5
67.5

and
and
and
and
and

—

1 Incudes integrated plants engaged in both tanning and finishing of patent leather.
2 Includes sheep, kid, cabretta, and cape glove leather.
3 Less than a tenth of 1 percent.
17
Of the total number of workers in harness leather, 25.0 percent earned under 30 cents, 30.0 percent less
than 35 cents, and 47.6 percent below 40 cents.


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Wages and Hours of Labor

971

O C C U PA T IO N A L D IF F E R E N C E S

Within each of the broad skill-sex groups, hourly earnings varied
conspicuously by occupation. Among the skilled males, average
hourly earnings by occupation ranged from 86.2 cents for daubers
(final coat, patent leather) to 65.8 cents for miscellaneous maintenance
woikers. Next to daubers, the highest occupational averages were
reported for the various kinds of working foremen over productive
departments, such as beam house, tanning, finishing, and sorting and
shipping, each of which groups averaged considerably over 80 cents.
Several groups of machine operators, namely those working on glazing,
splitting, and shaving machines, also averaged over 80 cents. A few
other productive occupations, such as inspectors and sorters of finished
leather, on the other hand, averaged between 70 and 75 cents. Most
of the occupational groups with averages under 80 cents, however,
were composed of nonproductive workers.
The highest hourly earnings for any occupation regarded by em­
ployees as semiskilled are shown for wet wheelers (emery grinding),
whose average amounted to 90.9 cents. In fact, this figure is higher
than the national average of any of the skilled occupations for males.
At the other extreme among the semiskilled male occupations are the
stretching-machine operators, oiling-off machine operators, and hand
leather stuffers, spongers, and oilers, whose averages were respectively
52.3, 49.5, and 48.9 cents. Omitting these extremes, the occupational
averages for semiskilled males ranged from 77.5 cents for machine
stakers to 55.9 cents for miscellaneous maintenance workers. In
other words, even with the extremes omitted, the range of occupational
averages among semiskilled males is fairly wide, but it must be re­
membered that the leather industry is for the most part one with a
large number of semiskilled workers, who differ widely as to degree
of skill.
It should be noted that in the semiskilled male occupations for
which separate figures are shown for hand and machine workers, with
two exceptions, there is very little difference between the respective
averages. In the important occupation of stakers, for example, the
average hourly earnings amounted to 77.5 cents for machine workers
and 77.4 cents for hand workers.
Ihe highest paid unskilled males are the beam house haulers,
cleaners of equipment, and stampers of hides and leather, who aver­
aged 61-62 cents an hour. For the remaining occupations, the aver­
ages ranged from 57.6 cents for tan house haulers to 45.6 cents for
watchmen. The small group of learners averaged 48.8 cents, which
was higher than the averages shown for miscellaneous laborers,
strippers of leather (other than patent), janitors, and watchmen.
Generally speaking, employees in the beam house averaged some­
what more than those performing similar work in the tan house. This

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972

Monthly Labor Review—April 1940

was particularly true of some of the unskilled occupations for males.
Haulers in the beam house, for example, averaged 61.8 cents an hour,
as against 57.6 cents for haulers in the tan house. Similarly, common
laborers in the beam house showed an average of 56.6 cents, as com­
pared with 51.8 cents for common laborers in the tan house.
In contrast with the wide range of hourly earnings among the male
occupations, those of female workers were confined to rather restricted
limits. The range of occupational averages among female employees
was less than 15 cents, the highest average (50.4 cents) being shown
for glazing-machine operators, a skilled occupation, and the lowest
average (35.5 cents) for learners. Among the semiskilled female
occupations, average hourly earnings ranged from 40.5 cents for the
miscellaneous hand workers to 49.7 cents for finishing- or seasoningmachine operators. Of the few occupations in which both males and
females were employed, the average hourly earnings of males were
without exception considerably higher than those of females, but the
differences declined as the skill of the occupation decreased.
V A R IA T IO N S B Y R A C E O F W O R K E R S

Of the total wage earners in the leather industry, 4.1 percent were
Negroes. The proportion of colored workers, however, varied from
one region to another. There were hardly any Negroes employed in
leather in the New England States, while the proportion amounted
to 4.5 percent in the Middle Atlantic and 4.2 percent in the Middle
Western States. In these States, moreover, the colored workers
showed a tendency to concentrate in the larger metropolitan areas.
In the Southern States, on the other hand, as many as 17.0 percent of
all employees were Negroes.
Since the plants in the Southern States specialize primarily on sole
and belting, as well as harness, leather, the proportion of Negroes
working on those products was considerably greater than on other
products. Moreover, the proportion of colored workers was substan­
tially higher in the beam and tan houses than in other departments,
the respective figures amounting to 9.7, 8.1, and 2.0 percent.18 The
most unpleasant jobs in the industry are located in the beam and tan
houses. The great majority of the Negroes were in semiskilled and
unskilled occupations. Thus, the colored workers constituted 4.1
percent of the semiskilled and 7.0 percent of the unskilled males, as
against less than 1 percent of the skilled males. Virtually all of the
Negroes employed in the industry were males, the number of females
amounting to only 2.3 percent.
A careful check of the basic data indicates that, in all plants where
whites and Negroes wer§ employed side by side on the same work,
there was no difference in their rates of pay. In some establishments,
is These percentages are exclusive of workers in occupations that could not be classified by department.


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Wages and Hours of Labor

973

especially in the Southern States, Negro workers were employed
exclusively in certain occupations. Owing to the other factors that
play a part in the wage structure, however, it is impossible to deter­
mine whether or not the Negroes received lower rates of pay than white
employees in the same occupations in other plants.
On the other hand, there is no doubt that the colored employees
occupied the lower rungs in the wage ladder of the leather industry.
One principal reason for this is the fact that the Negroes were for the
most part found in the semiskilled and unskilled occupations. An­
other important reason is the concentration of colored workers in the
Southern States, which showed a considerably lower wage level than
the Northern States.
As a result, the average hourly earnings of Negroes were lower than
those of other workers in the industry. For all colored employees, the
average amounted to 52.4 cents, which may be compared with 62.9
cents for all other workers. Taking the two groups in which most of
the Negroes were found, the respective averages were 55.7 and 66.1
cents for semiskilled males and 49.5 and 54.6 cents for unskilled males.
Similarly, the proportion of colored workers earning under 40 cents
an hour exceeded that for other employees. For all wage earners, the
respective figures were 13.7 and 5.1 percent. There were 9.7 percent of
Negro semiskilled workers receiving less than 40 cents, which may be
compared with only 1.9 percent of other employees. For unskilled
workers, the figures were 13.8 percent for colored and 5.8 percent for
other employees.
EXTRA

R A TE S FO R

O V E R T IM E W O R K

Extra rates were provided for overtime work in practically all establishments covered in the survey. The practices followed by the
different plants, however, varied considerably. In the majority of
establishments, the practice conformed with the provisions of the
Fair Labor Standards Act, and time and one-half was provided for
all work in excess of 44 hours per week. In a substantial number of
plants, the extra rates, which were either time and one-half or time
and one-third, applied for all work in excess of 40 hours.
Thus far, the figures presented for the leather industry have been
based on regular rates only. A substantial number of employees in
the industry, however, worked overtime during the pay-roll period
covered by the survey, for which they were paid extra rates. The
latter no doubt increased considerably the hourly earnings of some
individual employees. On the other hand, if the earnings due to the
extra rates paid for overtime work are distributed among all workers
in the industry, the average is raised by only one-half of a cent.


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Federal Reserve Bank of St. Louis

974

Monthly Labor Review—April 1940

WAGE SCALE FOR CUBAN SUGAR INDUSTRY, 19401
HIGHER wages for industrial workers in the Cuban sugar industry,
amounting to at least 10 centavos per 8-hour day, were established by
a resolution of the Minimum Wage Commission, effective January 12,
1940. A schedule of minimum monthly salaries was also included.
Salaries and wages now being paid which are higher than those estab­
lished in the resolution are not to be reduced.
The resolution of 1940 provides a comprehensive schedule of
minimum wages for 130 different categories of labor. The minimum
wage for field labor remains 80 centavos per day, the same as under
the law of September 2, 1937, with daily pay during the crop season to
be the price of 50 pounds 2of sugar, polarization 96 degrees, and during
the dead season to be increased over the minimum as the price of
sugar increases, to 1.50 pesos per day when the sugar price reaches
3 centavos per pound.
When the average price of raw sugar in warehouses varies from 1.50
to 1.60 centavos per pound, the minimum daily wages for the various
classes of workers vary from 1.25 pesos for common laborers to 4.75
pesos for specialized employees. When the price of raw sugar fluc­
tuates between 1.61 and 1.75 centavos per pound, daily wages are to
be increased by 10 centavos. For each 0.05 centavo increase in price
of raw sugar over 1.75 centavos, up to 3.50 centavos per pound, wages
are to be increased by 1%percent of the basic wage, in addition to the
10-centavo bonus noted above. When the price of raw sugar exceeds
3.50 centavos per pound, employers and workers may freely enter into
wage agreements, with the highest rates provided in the schedule for
the respective categories as the minimum basis for bargaining. On the
other hand, for each 0.05 centavo that the price of sugar falls below
1.50 centavos, down to 1 centavo per pound, 2 percent can be deducted
from the basic minimum wages; but in no case can the daily wage of an
industrial worker be less than 1.10 pesos.

Both increases and decreases of wages according to the fluctuation
in price of raw sugar are applicable during the grinding season, but
only the decreases are applicable during the dead season (i. e., the
period before the grinding of the new crop begins) when sugar is not
produced, usually from May to December. Basic wages and salaries
established by the resolution shall be reduced by 10 percent for sugar
mills producing less than 75,000 bags.3
At the average price of raw sugar on January 18,1940 (1.61 centavos
per pound), according to the 1937 law a minimum of 1.10 pesos per
day would be effective for common labor in the mills, whereas the
resolution of 1940 sets a minimum of 1.35 pesos. For certain sugar
1 Data are from reports of Harold S. Tewell and Charles R. Burrows, American consul and vice consul,
respectively, at Habana; and International Labor Office, Geneva, Legislative Series, 1934, Cuba 6.
2 Spanish pound throughout article; equivalent to 1.014 English pounds.
3 A bag contains 325 Spanish pounds.


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Wages and Hours of Labor

975

price ranges, however, the law of 1937 provided a slightly higher daily
wage than is provided by the new resolution, but it made no pro­
vision for increases after the price of raw sugar exceeded 3 centavos per
pound, whereas the resolution of 1940 provides for definite increases
till the price reaches 3.50 centavos per pound, and for pay increases by
agreement after that level is reached.
The following table shows salaries and wages in the Cuban sugar
industry, effective on January 12, 1940:
Wage Scale for Workers in Cuban Sugar Industry, Effective January 12, 1940
________________ [Average exchange rate of peso in January 1940 = 90 cents]

Oecupation

Wage rate
(in pesos)
Per
month

Per
day

Occupation

Wage rate
(in pesos)
Per
Per
month day

Field work:
M achinery d epartm ent— C ontd.
Superintendent............. __........... 142. 50
4.75
C onveyor greaser-.........................
37. 50
Inspector—- ................. ................. 70. 50
2. 35
L ocom otive engineer, scales____
67. 50
Cane weigher at yard (cars)___ 67. 50
2. 25
Locom otive fireman, scales____
45. 00
Cane weigher at yard (carts)___ 59.10
1.97
T rain brakem an, scales...... .........
45.00
Cane weigher at yard siding, or
C hief fireman (ten d erm an )_____ 64. 80
plantations, that receives a
C hief firem an’s helper__________ 45. 00
daily average of:
Car knocker___________ ____ ___ 52. 50
Up to 50,000 pounds 1........... . 39.00
1.30
Car greaser____________________
40. 50
U pto 100,000pounds............... 40. 50
1. 35
Track repair forem an.............. ....... 51.00
U pto 150,000 pounds,............. 43. 50
1.45
M
anufacturing
departm
ent:
U pto 200,000pounds.-........ .. 45. 00
1. 50
Second assistant in charge of
U pto 250,000pounds.............. 48.00
1.60
m anufacturing_______________ 165. 00
U pto 300,000pounds.............. 50.00
1.67
T hird assistant in charge of
U pto 375,000pou nds............. 52. 00
1.73
d e fe c a tio n .-.................................. 69. 00
More than 375,000 pounds___ 55.00
1.83
C hief of vacu u m p a n s__________ 144.90
Machinery department:
V
acuum
-pan operator__________ 105. 00
Assistant chief machinist______ 150. 00
5. 00
V acuum -pan operator’s assistant. 67. 50
Shop chief____________________ 100. 00
3. 33
H
elper
on
boiling p ans_________ 45. 00
Lathe operator________________ 82. 50
2.75
Triple-effect operator___________ 60.00
General mechanic_______ ____
82. 50
2. 75
Press
operator______
___________ 39. 00
General mechanic’s helper_____ 45. 00
1. 50
Centrifugal forem an____________ 60.00
Assistant on mills______ _____
72.00
2. 40
First
and
second
purgers...........
.. 46. 50
Car dumper (scales)...... ................ 42.00
1.40
Third purger________ ____ _____ 40.50
Cane-conveyor feeder__________ 42. 00
1.40
Laborers specializing in defecation:
Machinist’s helper (knives)____ 42. 00
1.40
Raw-juice cooker_______________ 39. 00
Cane feeder to crushers______ __ 42.00
1.40
Raw-juice tender_______________ 39. 00
Helper:
M
u d cooker___________________
On crushers____ _____ _____ 46. 50
37. 50
1.55
M u d tender___ ____ __________
On crushers (tandem of 1 or
37. 50
L
im
e
m
ixer____________________
2 mills)_____________ ____ 49. 50
39. 00
1.65
Juice weigher__________________
On crushers (tandem of 3 or
39.00
A
lkalizer______________________
more m ills)._____________ 52. 50
39.00
1.75
On pumps________________ 42. 00
1.40
Sugar floor:
On vacuum pumps________ 48.00
1.60
Sugar-floor forem an____________
60.00
Greasers on mill rolls__________ 39.00
1.30
Sugar w eigher___________ _____
45. 00
Scale foreman_________________ 45.00
1.50
B ag sew er_____________________
48.00
Chief mechanic of centrifugals__ 75.00
2. 50
B ag marker (m an ual)__________ 54.00
Mechanics on centrifugals______ 72.00
2. 40
Bag marker (m ach in e)_________ 48. 00
Mechanic’s helper on centrifu­
Truckers and funnel tender____ 42. 00
gals------ ------------------------------ 42.00
1.40
Stevedores (carrying on shou l­
Greaser on centrifugals and crysders) ________ _________________ 90. 00
talizers_____________________ 39. 00
1.30
U nstaeker_____________________
48.00
Tool-room storekeeper_________ 36.00
1.20
Stacking-m achine operator_____ 48.00
Blacksmith___________________ 78. 00
2. 60
Truckers on sta ck s_____________ 48. 00
Blacksmith’s helper (sledgeman). 42. 00
1.40
Laboratory section:
Boilermaker__________________ 82. 50
2. 75
C hem ist, secon d _______________ 105. 00
Boilermaker’s helper__________ 42. 00
1. 40
C hem ist, assista n t_____________
80. 00
Foundryman_________________ 120. 00
4.00
Sam
pler________________________ 36.00
Foundryman’s helper_________ 60. 00
2.00
C arpentry section:
Oxyacetylene welder__________ 85. 50
2.85
C hief carpenter________________
90.00
Oxyacetylene welder’s helper___ 48. 00
1. 60
First-class carpenter____________ 60. 00
Electric welder________________ 82. 50
2. 75
Second-class ca r p e n te r ..._______ 52. 50
Electric welder’s helper________ 42. 00
1. 40
Third-class carpenter___________ 45. 00
T insm ith.____________________ 52. 50
1.75
T em p late m aker_______________ 120. 00
Furnace foreman_____ _________ 75.00
2. 50
T u rn er_______ _____ _______ ___ 75. 00
Water tender_______ ____ _____ 52. 50
1.75
Bagasse feeder................................. 39.00
1.30
M asonry section:
Oil burner........... —_____ _______ 45. 00
Skilled m ason __________________ 67. 50
1.50
Furnace cleaner (fire tender or
Sem iskilled m ason _________ ___ 48. 00
stoker)_____________________ 52. 50
1.75
P lum ber_______________________ 75. 00
Spanish pound; equals 1.014 English pounds.
217593— 40-------13


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1. 25
2.25
1. 50
1. 50
2.16
1.50
1.75
1.35
1.70
5. 50
2.30
4.83
3. 50
2.25
1.50
2 . 00

1.30
2. 00

1.55
1.35
1.30
1.30
1.25
1.30
1. 30
1.30
1.25
2 . 00

1.50
1.60
1.80
1.60
1. 40
3.00
1.60
1. 60
1.60
3.50
2. 66
1. 20

3. 00
2.00

1.75
1. 50
4. 00
2. 50
2. 25
1. 60
2. 50

Monthly Labor Review—April 1940

976

WAGES IN GERMANY IN 1940
AN ORDER of the German Government, issued on September 1,
1939,1 empowered the State Labor Trustees to issue labor regulations
not only for groups of related industries, as had been originally author­
ized by the National labor law of January 20, 1934,2 but also for
individual establishments. Subsequent orders, issued on October 11
and 12, 1939,3provided for limitation of wages and reduction of prices,
the reduced wage rates to be fixed by the labor trustees on the basis
of schedules prescribed by the Ministry of Labor.
In accordance with the above orders, the Labor Trustees have fixed
and issued wartime wage rates (Kriegslohne), which are lower than
those previously in effect.4 The authorities justify the lowering of
wage rates on the ground of the needs of war financing, and also by
the argument that wage earners in the factories and workshops are
“ soldiers” of the home front and therefore should not enjoy better
living conditions than the soldiers on the firing lines.
In working out the new rates, these State authorities used a minute
classification of all labor and living conditions, and weighed all of the
advantages a worker may have, no matter how small and inconsequen­
tial in themselves. Thus, in fixing the wage rate, the worker’s age
and sex, his experience and degree of skill, his marital status, the
length of his service in the same occupation, whether he is a citizen
or merely a resident, to what race he belongs, whether he is of a van­
quished status (a war prisoner or an exile forcibly brought from a
conquered neighboring country or state to perform compulsory labor
in Germany for mere food and shelter), the geographical location of
the place of work to which assigned, the wage locality (which is based
upon availability of provisions and their local prices), and the dis­
tance of residence from place of work, etc., were all considered. Wher­
ever possible and convenient, a piece rate was applied, calculated on
the basis of a time rate with a few pfennige more than the time rate
per hour.
The German Government is practicing a policy of attaching workers
to their jobs by long-term employment contracts—nominally for a
year in most cases, but usually extended for another year and then
again for the year following, etc. It is accomplishing this by requiring
a long-term notice (usually 3 months) before leaving the employment,
and even then requiring the consent of the State; by a labor passport
system; by a supplementary wage payment at the end of a year if
1Reichsgesetzblatt, Berlin, September 5, 1939, pt. 1, pp. 1639-1644.
2 See M onthly Labor Review, February 1936 (pp. 419-420) and January 1938 (pp. 94-97).
3 Reichsgesetzblatt, Berlin, October 16, 1939, pt. 1, pp. 2027-2028.
1 Reichsarbeitsblatt, Berlin, January 15, 1940, pt. IV; and January 25, 1940, pt. IV .


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Wages and Hours of Labor

977

employment has been continuous; and by offsetting the rising cost of
living by payment of wages in kind and by a system of shelter in
barracks and feeding of workers in canteens.
Explaining the introduction of forced labor (Dienstpflicht) by the
decree of February 13, 1939, the Minister of Labor stated that forced
labor “ is the equal economic counterpart to an order for military con­
scription.” With regard to the long-term attachment of workers to
their work places by the State, it was stated: “ Heavy losses of labor
arise in any national economic system from a continuous fluctuation
of workmen [labor turn-over.] In order to reduce these losses, a gen­
eral restriction on fluctuation of workers has been introduced” in all
industries.5
Wages of Industrial Workers
As noted, the wage rates established are extremely detailed and
vary from place to place. Some typical rates are shown in the fol­
lowing pages.
FOOD IN D U S T R IE S

Table 1 shows the rates established for the food industries of the
Province of Danzig-West Prussia by the labor regulations of Decem­
ber 22, 1939.
T

a b l e

1. — Wages in the food Industries of Province of Danzig-West Prussia
[Average exchange rate of reichsm ark in D ecem ber 1939=40 cent 3]

Industry and class of worker

Wageloeality Wageloeality W ageloeality
I
II
III
Rate per week

Bakeries:
Skilled workers:1
General bakeries:1
First class_________ ______
Second class___ _ ______
Third class__________ _
Bread bakeries A _____
Helpers, messenger boys, yardmen, stablemen, and team­
sters working 48 hours a week, aged—
14 and 15 years__________
16 and 17 years_________
18 and 19 years_______
20 to 22 years__________
Over 23 years______
Truck drivers working 54 hours a week_ _
Teamsters working 60 hours a week

Urn.
32.50
30.00
29.00
32.50

Jim.
30.00
28.00
26.00
30.00

28.00
26.00
24.00
28.00

9.00
12. 50
18.00
21.50
26.00
31.50
29.00

8.00
11.25
16.00
19. 50
23.50
29.00
26.00

7.00
10.00
14.50
17. 50
21.00
26.00
24.00

Rate per month
Truck drivers’ helpers, engaged in selling (in addition to
food and lodging): s
First year___ ___________________
Second and third years_______
Fourth and fifth years______ ___ _____
Sixth and seventh years___ _ _____
Eighth year and up_________ ___________

19.00
25.00
38.00
44.00
51.00

17.00
22.50
34.00
40.00
46.00

15.00
20.50
30. 50
36.00
41.50

5 W eekly R eport of the German In stitu te for B usiness Research. Berlin. February 3, 1910, p p. 8 and 9.


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Monthly Labor Review—April 1940

T able 1.— Wages in the Food Industries of Province of Danzig-West Prussia

C on tin u ed

Wage locality Wage locality Wage locality
III
II
I
Industry and class of worker
Rate per week
M eat industry:
Journeymen:2

34.50
30.00
29.00
26.00
8.00

38.00
33.00
31.00
29.00
9.00

Meat processing (canning, sausage making, etc.):
Journeymen, age:4

0

0

8.00
11.00
16.00
19.00
21. 50
26.00
24.00

9.00
12.50
17.50
21.50
24.00
29.00
26.00

10.00
14.00
20.00
23.50
26.00
31.50
29.00

30.00
28.00
26.00
24.00
7.00
26.00
27.00

29.00
30.00

31.00
33.00
0

Unskilled helpers, age:

Rm.

Rm.

Em.

Rate per month
Saleswomen:
After 2 years’ experience or in first year after appren-

45.50
52.00
60.00
72.00

45.50
52.00
60.00
72.00

50.50
57.00
66.50
80.00

Rate per hour
Flour mills:
Skilled millers:

Helpers, aged

0

0.70

0.67

0.62

.65
.60
.55

.62
.56
.51

.57
.51
.46

.50
.45
.40
.35

.47
.41
.36
.31

.44
.39
.34
.29

0

0

1 Confectionery workers receive 20 percent more than the rates shown, in all wage localities.
2 In the first year after apprenticeship, 24 marks gross per week is paid, in all wage localities.
s Shift foremen receive 10 percent more than the rates shown, and yeast mixers, kneaders, and foremen,
receive 5 percent more, in all wage localities.
,
„
,
,
4
Workers in higher-skilled occupations receive 10 percent, and foremen 20 percent, more than the rates
paid journeymen.
6 5 per cent more than the rates shown for unskilled helpers.
.
.
6 Teamsters working with 2 horses receive the helpers’ wage, and in addition receive 3 marks weekly m
the first wage locality, 2.50 in the second, and 2 in the third.
7 70 percent of the wages paid to male workers.

In bakeries, if food and lodging are furnished, a deduction of 13.50
marks for food and 3.50 marks for lodging is made from the weekly
wages. For truck drivers, if food and lodging are not furnished, 20
marks is paid for food and 10 marks for lodging, per month. In the
meat industry the following weekly deductions are made from the
wages, if food and lodging are provided by the employers: In wage
locality I, 7 marks for food and 3 for lodging; in locality II, 6.50 marks


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Federal Reserve Bank of St. Louis

Wages and Hours of Labor

979

and 2.50 marks, respectively; and in locality III, 6 and 2 marks. In
the meat-processing industry, if board and lodging are furnished to
saleswomen, 18 marks per month for food and 9 marks per month for
lodging can be deducted in the first wage locality, 17 marks for food
and 8 marks for lodging in the second and third wage localities. In
flour mills apprentices in each wage locality receive in addition to
free food and lodging, 4 marks monthly in the first year, 6 marks
monthly in the second year, and 10 marks monthly in the third year.
In case no free food and lodging are furnished, they receive educational
assistance of 6 marks weekly in the first year, 8 marks in the second
year, and 12 marks in the third year.
Labor regulations issued by the labor trustee of the industrial dis­
trict of Hesse, on December 16, 1939, provide for the following hourly
wages in canneries in that district.
T able 2.—Hourly Wages 1 in Canneries in Hesse, 1940
[Average exchange rate of reichsmark (100 pfennige) in December 1939=40 cents]
Wage locality I

Wage locality II

Men

Women

Men

Pfennige

Pfennige

Skill and age class

Skilled woikers aged:
18 to 20 years—.................
20 to 22 years......__...........
23 years and up ___ . . .
Semiskilled workers aged:
15 and 16 years___________
17 and 18 years____
19 and 20 years____
21 and 22 years_____
23 years and up__ . . .
Unskilled workers aged:
15 and 16 years.. . _________
17 and 18 years_____
19 and 20 years____ . .
21 and 22 years. _.
23 years and u p ___ _____

Pfennige
60
73
83

Women

54
65
74

Pfennige

45
50
57
66
74

32
36
40
46
52

40
45
51
60
66

24
27
30
34
38

35
42
48
58
66

24
30
35
40
46

30
36
42
50
60

21
25
28
31
34

1 The workers required to travel outside of their section receive 1.30 marks for midday dinner, 1.10 marks
for supper, and 2.80 marks for lodging.

Regular hours of labor are fixed at 48 a week, but the employer may
increase weekly hours to 60 (10 hours a day).
For overtime (after 10 hours a day) the wage is increased by 25
percent of the wage for regular hours, for night work by 10 percent,
and for Sunday and holiday work by 50 percent.
W OOD A N D M ETA L IN D U S T R IE S

Table 3 shows the wages of woodworkers and metalworkers in
Danzig-West Prussia, set by the regulations issued December 22, 1939.


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Federal Reserve Bank of St. Louis

980

Monthly Labor Review—April 1940

T able 3.—Hourly Rates P aid Metal and Wood Workers in Province of Danzig-Wes
Prussia, 1940
[Average exchange rate of reichsmark (100 pfennige) in December 1939=40 cents]
Wage locality

Wage locality
Occupation, skill, and age

Occupation, skill, and age
I

II

III

II

III

Pf.

Pf.

Pf.

52
47
42
38
34
31
28

47
42
38
34
31
28
25

43
39
35
32
29
26
23

69

64

58

63

58

53

63

58

53

60

55

50

Woodworking—C ontinu ed

Metal industries
Locksmiths in power-vehicle and
electrical establishments:
Skilled workers after appren­
ticeship of—
Pf.
1 year............. .......................
47
2 years...................................
53
3 years...................................
61
4 years.________________
70
Semiskilled workers aged
over16 years______ _________
32
18 years........................... .
40
20 years..______________
49
22 years_________ _______
57
Unskilled workers aged over—
16 years__________ ______ 25
18 years............. ...............
35
20 years..______________
38
22 years________ ______ _
52
Blacksmith shops:
Skilled workers, after appren­
ticeship of—
1 year._________________
47
2 years_________________
52
3 years_____________ ____
58
4 years_________________
66
Unskilled workers aged over—
16 years________________
25
18 years________________
35
20 years................. ................ 38
22 years________________
52
Tinsmiths, coppersmiths, equip­
ment installers, pipe layers and
mechanics:
Skilled workers, after appren­
ticeship of—
1 y e a r..._______________
52
2 years.________________
58
3 years____ ____________
67
4 years.________________
76
Semiskilled workers aged
over16 years.................................
33
18 years.................... ............
41
20 years.................................
50
22 years............ ................... 60
Unskilled workers aged o v e r 16 years_______ ________ _ 25
18 years................................
35
20 years............................
38
22 years.............. .............
52

Pf-

45
50
56
63

Pf.

42
48
53
59

30
37
45
52

28
34
42
48

23
32
35
47

21
30
33
45

45
49
52
59

42
47
48
56

23
32
35
47

21
30
33
45

50
55
62
69
31
38
46
54
23
32
35
47

46
53
58
64
29
35
43
50
21
30
33
45

Woodworking'
Highly skilled workers__________
Skilled workers:
Over 22 years of age_________
4th year after apprenticeship..
3d year after apprenticeship...
2d year after apprenticeship...
1st year after apprenticeship..
Semiskilled workers aged—
Over 22 years________ ______
20 to 21 years...............................

I

77

72

66

70
70
66
60
53

65
65
61
55
49

60
60
56
51
45

60
55

55
51

51
47

Sem iskilled w orkers aged—Con.
18 to 19 years_______ ________
17 years_____________________
16 years.............. ........... ............... .
H elpers aged—
Over 20 years________________
19 y ea rs.____ ___ ____________
18 years_____________________
17 y ea rs.____ ________________
16 y e a r s..____ _______________
15 y ea rs..,_______ ____________
14 years_____________________
M akers of vehicles (w ith out u p ­
holstery) :
H igh ly sk illed _______________
Skilled:
Over 22 years of age______
4th year after apprentice­
sh ip ___________________
3d year after apprentice­
s h ip .______ ___________
2d year after apprentice­
sh ip _______ ___________
1st year after apprentice­
sh ip ___________________
Cooperage workers:
H igh ly sk illed ................... ..........
Skilled:
Over 22 years of age______
4th year after apprentice­
s h ip .______ ___________
3d year after apprentice­
sh ip ___________________
2d year after apprentice­
sh ip ___________________
1st year after apprentice­
sh ip ______ ____________
M ould makers:
H igh ly sk illed ......... ........... .........
Skilled:
Over 22 years of age______
4th year after apprentice­
sh ip ___________________
3d year after apprentice­
s h i p . . . ______ _________
2d year after apprentice­
sh ip _______ ____ ______
1st year after apprentice­
sh ip ____ _______ ______

49
41
33

45
38
31

42
35
29

54

50

45

48

44

40

80

74

67

72

67

61

72

67

61

70

64

58

62

57

52

55

50

46

83

77

70

75

70

64

75

70

61

73

67

61

65

60

55

58

53

50

Sawmills
H ighly skilled w o rk ers....................
Skilled workers aged—
Over 22 y e a r s.______ ________
U nder 22 years_______ _______
Sem iskilled workers aged—
Over 22 y e a r s ..............................
U nder 22 years........ .....................
H elpers aged—
20 years and o v er........... .............
18 and 19 years______________
17 y e a r s..______ _____ _______
16 years...... ......................... ...........
Fem ale w ork ers.._______ ________

70

66

61

62
58

59
55

55
50

56
52

52
47

47
43

52
45
38
34
(2)

47
40
34
31
(2)

43
37
32
29
(2)

1 Parquetry layers receive rates 20 percent, and wood carvers 10 percent, higher than the rates shown.
Female workers receive 70 percent of the male workers’ rates shown except in the musical-instrument and
small woodworking industries, in which they receive 90 percent.
2 Female workers receive 70 percent of the male workers’ rates shown above.


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Federal Reserve Bank of St. Louis

linages and Hours of Labor

981

P R I N T I N G IN D U S T R Y

Wages were fixed for the printing industry in the administrative
districts of Aussig and Eger in the Sudeten Province, by regulations
issued December 14,1939. These are shown in table 4.
T able 4 — Hourly Wages 1 in Printing Industry in Aussig and Eger, by Skill and

Age Group, 1940
[Average exchange rate of reichsmark (100 pfennige) in December 1939=40 cents]
Hourly rate for workers aged—
Class of worker

Highly skilled workers____
Skilled workers. . . .
Unskilled w orkers.. ___
Helpers____________

___

14
years

15
years

16
years

17
years

18
years

19
years

20
years

21
years

22
years

Pf.

pf.

pf

Pf

pf

pf

Pf

pf

Pf

17

28
21

34
25^

47
43
38
30

55
50
44
35

02
56
49
40

68
61
54
44

73
66
59
48

78
71
64
52

1 Female workers in corresponding age groups and wage classes receive 75 percent of the above rates naid to

v

IH.IA W nrlTATS

The following rates for a week of 54 hours are paid to workers of
specified classifications:
Rm.

Machinists, skilled_________________ 38. 50
Firemen, skilled____ _______________36. 50
Machinist helpers________________ 3 4 . 00
Firemen helpers.__________________ 32. 00
Teamsters_______________________ 29. 00
Truck drivers ______________________3 7 . 50
Semiskilled truck drivers___________ 32. 50
Doormen and watchmen____________ 27. 50

Apprentices are paid 6 marks weekly in the first year of apprentice­
ship, 8 marks in the second year, and 11 marks in the third year.
P A IN T E R S

Labor regulations issued by the labor trustee of the WestfalenLower Rhine district, on December 19, 1939, prescribed hourly wages
for painters, as follows:
Special wage class
Wage locality:
I _______________
IT___________
I I I _______________
IV________________
V______________

Skilled

Helpers

90

72

85
80
76
72
68

68

64
61
58
55

Wages of Agricultural Workers
Labor regulations of January 8, 1940, issued by a special labor
trustee, fixed the following monthly and hourly wages (in addition
to free food and lodging) of the farm hands who are residents of
Germany but are not citizens, for the whole country.

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Federal Reserve Bank of St. Louis

982

Monthly Labor Review—April 1940

T able 5.— Monthly and Hourly Wages Paid in Germany to Farm Workers Who are

Residents but not Citizens
[Average exchange rate of reichsmark (100 pfennige) in December 1939—40 cents]
Rate per hour,1 in wage
locality—

Rate per month, in wage
locality—
Sex and age

II

III

IV

Pf-

Pf.

I

II

III

IV

I

Rm.

Rm.

Rm.

Rm.

Pf.

26.50
24.00
21.50

25.00
22. 50
20.00

23.50
21.00
18. 50

21.00
18.50
16.00

25
23
21

24
22
20

23
21
19

22
20
18

20.00
..17.50
15.00
Under 18 years - - _____________

17. 50
15.00
12.50

15.00
12. 50
10.00

15.00
12. 50
10.00

20
19
18

19
18
17

18
17
16

18
17
16

Males aged—
21 years and over- _____ — - 18 to 21 years. ______________
Under 18 years_______
______
Females aged—
21 years and over- -- - ------------

Pf.

i The hourly rate is decreased by 5 pfennige if the hourly worker is paid in kind for a week as follows:
Potatoes, 12.5 kg. (a kilogram is equivalent to 2.2046 lbs.); bread, 3 kg.; flour, 0.375 kg.; fat, 0.25 kg.; meat,
0.50 kg.; salt, 0.25 kg.; skimmed milk, 7 1. (a liter is equivalent to a little more than one quart).
W A G E S O F FA R M H A N D S IN PR O V IN C E OF P O SE N

On January 8, 1940, the Governor of the Province of Posen issued
detailed regulations governing wages and working conditions of farm
workers. For married farm hands having a yearly contract of
employment the following wages were set:
Wage locality I

Wage locality I I

Money wages:
Money wages:
1 0 marks per month.
1 2 marks per month.
Yearly supplement of 12 marks.
Yearly supplement of 12 marks.
Lodging.
Lodging.
Shelter and feed for 1 cow, or daily Shelter and feed for 1 cow, or daily
allowance of 2 liters of whole milk
allowance of 2 liters 1 of whole milk
and 3 liters of skimmed milk.
and 3 liters of skimmed milk.
2 0 hundredweights of rye.
18 hundredweights of rye.
8 hundredweights of barley.
6 hundredweights of barley.
2 hundredweights of wheat.
2 hundredweights of wheat.
40 hundredweights of potatoes.
60 hundredweights of potatoes.
1 acre of land.
1 acre of land.
30 rods of cabbage land.
30 rods of cabbage land.
50 hundredweights of coal.
60 hundredweights of coal.

Farm hands employed on dairy farms receive an increase of 2
marks a month. For overtime, Sunday, and holiday work the hourly
farm hands receive an increase of 25 percent over their wage for regular
time. Monthly farm hands do not receive this increase.
The employment contract of hourly farm hands is binding for a
season up to December 15 of the employment year.
Wages of agricultural workers of higher grades differ from the above
only in the following particulars: The money wage of teamsters,
gardeners, and mechanics is 18 marks in locality I and 15 marks in
locality II, and those in locality I receive 1 hundredweight more wheat.
i A liter is equivalent to 1.0567 quart.


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Federal Reserve Bank of St. Louis

Wages and Hours of Labor

983

Herders in both localities receive shelter and feed for 2 cows, and 2
hundredweights more of wheat; the money wage is 21 marks in locality
I and 18 marks in locality II. Blacksmiths and Cartwrights receive
a money wage of 24 marks in locality I and of 20 marks in locality II.
In all cases the yearly supplement for these higher-grade workers is
12 marks in locality I and 10 marks in locality II.
Single farm hands, who are living with the families of the peasantfarmers, receive, in addition to free food and shelter, the following
monthly money wage:
jl v iu .

Over 21 years of age______________________________ 20. 00
18 to 21 years of age____________________________ 1 7 . 5 0
18 years of age----------------------------------------------------- 1 5 , 0 0
Females:
Over 21 years of age____________________________ 1 4 . 00
18 to 2 1 years of age____________________________ 1 2 . 0 0
18 years of age----------------------------------------------------- 1 0 . 0 0

In both wage localities, overtime is paid for at 20 pfennige per
hour, and for Sunday and holiday work, 30 pfennige per hour.
The prescribed daily hours of labor for agriculture in the Province
of Posen are as follows:
January 1 to January 15
-- 6 ft
January 16 to Januarv 31
— 7
Month of February
8
March 1 to March 15__
-- 9}i
March 16 to March 31
10
Month of April______
~ ioy2
May, June, July, and A ugust... .. n

September 1 to September 15___
September 16 to September 30__
October 1 to October 15.
October 16 to October 31
Month of November
December 1 to December 15
December 16 to December 31___

1 0 }^
10
10

9
8

7

ey

WAGE IN CREA SES IN NORWAY IN 1940, BASED ON
COST OF LIV IN G 1
MEDIATION pending since December 15, 1939, between the Fed­
eration of Labor and the Employers’ Association, in regard to organ­
ized labor’s demand for compensation for the recent increase in the
cost of living, was concluded on January 4, when the National Mediator
submitted a proposal for the two organizations’ approval. The pro­
posal provides for a 1-year extension of all wage agreements from the
respective dates of expiration in 1940, on the condition that, as of
January 1, 1940, compensation for the rise in cost of living up to
December 15, 1939, be granted to all labor organizations concerned,
and 75 percent compensation for the rise during 1940. Such com­
pensation will average 7 percent for the cost-of-living increase up to
December 15, 1939. If the cost-of-living index as of March 15 and
June 15, 1940, should rise or fall by 5 points or more as compared
with the last regulation, all wages will be increased or decreased by
1

Data are from report of Mrs. Florence Harriman, American Minister at Oslo.


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Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

984

75 percent of the rise or fall in points. Further regulation of wages
will take place on October 15, 1940, when the Employers' Associa­
tion (in case of a drop in the cost-of-living index) or the Federation
of Labor (in case of an increase) may demand the inauguration of
negotiations for future wage regulation. If no agreement is reached,
either of the parties may give notice of termination of the wage agree­
ments, to take place on April 1, 1940.
This proposal does not affect the workers of the transport industry
for whom a decision, made by a court of arbitration on December 12,
granted an average increase in wages and regulation thereof in 1940
on the basis of 75 percent of any increase or decrease in the cost-ofliving index in excess of 3 percent as compared with the November 15,
1940 index.
The Federation of Labor recommended that its member organiza­
tions accept the National Mediator’s proposal, to which replies of the
Federation of Labor and the Employers’ Association were to be
given on January 25.
SL ID IN G SCALE OF WAGES IN SW ED EN
THE Swedish Confederation of Trade-Unions and the Employers’
Federation made an agreement, December 16, 1939, providing that
if on April 1, 1940, the general cost-of-living index published by the
Social Board exceeds by at least 6 points the index as of January 1,
1940, a wage adjustment shall be made from and including the wage
period ending May 1, 1940.1 Thereafter, similar adjustments are
to be made at the beginning of the second month in each quarter if
the index at the beginning of the quarter exceeds by at least 6 points
the index established (a) at the time of the most recent wage adjust­
ment, or (b) on January 1, 1940, in the event such wage adjustment
has not taken place.
Should the index drop, wage adjustments are to be made on the
same principle as above described, but in no event may the basic
wages established by a collective agreement be reduced.
The wage is to be adjusted by 0.42 percent for each unit of increase
or decrease in the index. If the collective agreement affects a single
enterprise, the percentage is applied to the average hourly wage for
an ordinary working day during 1938 of all adult male employees and,
with respect to adult female employees, of each individual employee.
The resultant figure, in ore 2 per working hour, is payable equally to
all adult male and female employees.
' Data are from report of Hallett Johnson, American Consul General at Stockholm.
2 Exchange rate of krona (ICO ore) in December 1939=23.8 cents.


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Federal Reserve Bank of St. Louis

Wages and Hours of Labor

985

The extra compensation for workers under 16 years of age is to be
30 percent of that payable to adult workers; for workers 16 and
under 18 years of age, 45 percent; and for workers 18 years of age and
over who, under the collective agreement are not paid on the same
basis as adult workers, 65 percent.
If an industry desires, because of business difficulties existing at
the effective date of the above-stated stipulations covering wage ad­
justments, it may be released therefrom or secure a modification
thereof, with the consent of the other party to the agreement. If the
parties cannot agree, they are bound by the stipulations.
The total number of employers’ associations affiliated with the
Swedish Employers’ Federation is 38, with 6,000 members having
about 410,000 workers. On October 31, 1939, there were 46 tradeunions, with 957,765 members, affiliated with the Swedish Confedera­
tion of Trade-Unions. The considerable difference between the
number of workers in the Confederation of Trade-Unions and of those
employed by members of the Swedish Employers’ Federation is due
to various factors. First, employers in several important lines, such
as hotels and restaurants, private railroads, etc., are not affiliated
with the Employers’ Federation. Second, the various employers’
associations report a figure indicating the average number of workers
actually employed during the year, whereas the trade-unions report
as members all workers in the particular trade of each union, irre­
spective of whether or not they have employment.
During the year ending September 1, 1939, membership of the
unions affiliated with the Swedish Confederation of Trade-Unions in­
creased by 67,424. On the basis of a percentage of population
(about 6,500,000), Swedish labor is about the most highly organized
in the world.3
3 New York Times for February 19. 1940, p. 6, c. 3.


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Federal Reserve Bank of St. Louis

Labor Turn-Over

LABOR TU RN -O Y ER IN M AN U FACTURIN G ,
JANUARY 1940
A MODERATE decrease in the lay-off rate in manufacturing
industries in January as compared with December was indicated by
labor turn-over reports received by the Bureau of Labor Statistics.
Lay-offs were reported at the rate of 2.55 per 100 employees in Jan­
uary compared with 2.65 in December and 2.24 a year ago. The
discharge rate increased from 0.12 to 0.14. Prior to January 1940,
quits and miscellaneous separations were reported under one classi­
fication. The total of these types of separation was 0.74 (quits 0.63,
miscellaneous separations 0.11) in January, compared with a rate of
0.69 in December and 0.85 in the corresponding month of 1939.
The total separation rate of 3.43 was slightly lower in January than
in December. It was, however, somewhat higher than a year ago.
The total accession rate increased from 2.84 per 100 employees in
December to 3.74 in January. Rehires constituted 1.96, and new
hires 1.78 of the total.
All Manufacturing
The Bureau of Labor Statistics’ survey of labor turn-over covers
approximately 5,600 representative manufacturing establishments,
which in January employed 2,500,000 workers. The rates represent
the number of changes in personnel per 100 employees on the pay rolls
during the month.
The rates shown in table 1 are compiled from reports received from
representative plants in 144 industries. In the 33 industries for
which separate rates are shown (see table 2), reports were received
from representative plants employing at least 25 percent of the
workers in each industry. In the present article are given, for the
first time, separate rates for the aircraft, cast-iron pipe, and ship­
building industries. In response to numerous requests, the Bureau
is presenting turn-over rates also for 29 States in which the number
of reporting firms is sufficiently large to justify the publication of
State figures. (See table 3.)
986


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Federal Reserve Bank of St. Louis

PER IOO ON THE PAY

ROLL

Labor Turn-Over


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Federal Reserve Bank of St. Louis

LABOR TURN-OVER RATES IN MANUFACTURING

O
00
►4

988

Monthly Labor Review—April 1940

T able 1 .— Monthly Labor Turn-Over Rates in Representative Factories in 144 Industries 1
Class of turnover
and year
Separations:
Quits:
1939______
Discharges:
1939______
Lay-offs:2
1939_____
Miscellaneous
separations,8

Aug. Sept.

Oct.

Nov. Dec. Aver­
age

0.82

1.07

0.93

0.83

0.69

0.79

.12

.14

.14

.17

.15

.12

.13

2.46

2.54

2.05

1.58

1.81

1.97

2.65

2.22

3.48

3.31

3.36

3. 01

2. 79

2.91

2.95

3.46

3.14

3.29

3.92

4.16

5.06

6.17

5.89

4.10

2.84

4.07

Jan.

Feb.

Mar.

Apr.

M ay June July

0.63
.85

0.64

0.82

0.76

0.68

0. 73

0.70

.14
.10

.10

.13

.10

.13

.12

2.55
2.24

1.87

2. 23

2. 60

2.67

2.61

3.18

3.46

3.06

3. 34

2.93

.11
Total:
1940___ 3.43
1939____ 3.19
Accessions:4
Rehirings,1940. 1.96
N e w hirings,
1. 78
Total:
1939........

3.74
4. 09

1 The various turn-over rates represent the number of quits, discharges, lay-offs, total separations, and
accessions per 100 employees.
2 Including temporary, indeterminate, and permanent lay-offs.
■
3 Beginning with January 1940, miscellaneous separations, such as deaths, permanently disabled, retired
on pensions, etc., have been reported separately. Such separations were formerly reported under the classi­
fication "‘quits and miscellaneous separations.”
.
* Beginning with January 1940, accessions have been separated into two classifications: rehires, which
include workers hired after a separation of 3 months or less, and other employees hired.

Analysis by Industries
In addition to the information for manufacturing as a whole,
detailed labor turn-over data are available for 33 separate manu­
facturing industries.
It is of particular significance that new hirings in a number of
industries represented by far the greater part of total accessions.
The aircraft industry reported a rehire rate of 0.27 accompanied by
a new-hire rate of 8.39; cigars and cigarettes showed 0.94 and 2.21;
electrical machinery, 1.03 and 2.33; foundries and machine shops,
0.75 and 2.63; machine tools, 0.10 and 5.56. The rehire rate was
greater in the automobile and bodies industry, with a rehire rate of
1.01 and new-hire rate of 0.86; the furniture industry showed 2.22 and
1.72; men’s clothing, 3.08 and 2.06; book and job, 2.74 and 1.87;
rubber boots and shoes, 4.25 and 0.34; and woolen and worsted
goods industry, 4.22 and 1.79.


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Federal Reserve Bank of St. Louis

Labor Turn-Over

989

T able 2.—Monthly Labor Turn-Over Rates (per 100 Factory Employees) in 33
Manufacturing Industries

Class of turn-over

January
1940

Decern
her
1939

January
1939

Aircraft
Separations______________
Quits________________
Discharges___________
Lay-offs______________
Miscellaneous separa­
tions 1______________

4.03
1.38
.73
1.89

Accessions 2______________
Rehirings_____________
N ew hirings__________

8.66
.27
8. 39

1.71
1.14
.24
.33

2.86
.72
.20
1.94

2.12
.75
.06
1.26

6.90

8.16

1. 87
1.01
.86

Accessions2______________
Rehirings____________
N ew hirings__________*

4.42
2.12
2.30

1.73
.73
. 13
.87

9. 59
.45
.14
8. 95

5.13

7.82

2.52
1.87
.65

14.13
.20
.06
13.76

Accessions 2____________. . .
Rehirings______ ______
New hirings....... ..............

1.85
1.57
.28

13. 38
.35
.01
13.02

5.35
1.77
.19
3. 35

1.00

9. 27

3.15
.94
2.21

.11

2.96
.54
.10
2.10

Accessions 2______________
Rehirings____________
N ew hirings..........

3. 36
1.03
2.33

2. 51
.50
.04
1.97

2.23
.52
. 15
1.46

3.15

3.21

3.38
.75
2.63

Accessions 2_______ _______
Rehirings.........................
N ew hirings_____ ____ _

1.58
.99
.59


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2.95
.28
.06
2.61

3. 56
.23
.07
3.26

2.84
.86
.19
1.65

2.08

1.43

2.97
.59
2.38

January
1939

3.03
.74
.20
2.09

6. 71
.58
.10
6.03

9.35

4.18

.09

Cast-iron pipe

7.'65
.51
.04
7.10

6.72
.41
.13
6.18

2.28
.38
.07
1.69

2. 02

3.90

1.24
.52
.72

1.34
.68
.13
.53

1.96
.47
.11
1.38

.80

1. 50

. 14

Cotton manufacturing

5.38
1.01
.07
4.30

4. 29
1.74
.12
2.43

3. 57
1.14
.20
2.02

1.30

5.19

3. 66
1. 64
2.02

3.09
1.23
.16
1. 70

2.88
1.10
.21
1. 57

2.75

4. 09

.21

Furniture

1.75
.54
.12
1.09

1.88
.35
.06
1.47

3.74
.63
.21
2.82

3.21

3.31

3.94
2.22
1.72

5. 45
.67
. 19
4.59

4.65
.57
.16
3. 92

2.10

5. 57

.08

Hardware

.08

See footn otes a t end o f table.

4.63
1.41
3.22

.10

Glass
3. 37
.27
.05
2. 97

2.15

Foundries and machine
shops

2.82
.60
.08
2.14

.22

Separations______________
Quits________________
Discharges___________
Lay-offs............................
Miscellaneous separa­
tions i ______________

3.43

.04

Electrical machinery
Separations______________
Quits________________
Discharges___________
Lay-offs.........................
Miscellaneous separa­
tions 1______________

5.70
.77
.25
4. 59

Cigars and cigarettes

13.86
.40
.05
13.41

Decern
ber
1939

Automobile parts

5.14
2. 58
.04
2.52

.05

Cement

January
1940

4.18
1.00
.04
3.14

Brick tile, and terra
cotta

2.91
.66
.15
2.10

.05

Separations______________
Quits________________
Discharges___________
Lay-offs.______ _______
Miscellaneous separa­
tions 1______________

January
1939

.05

Boots and shoes
1.99
.63
.12
1.19

Decern
her
1939

Automobile and bodies

.03

Separations______________
Quits________________
D ischarges.....................
Lay-offs______________
Miscellaneous separa­
tions L . . ___________

January
1940

Iron and steel

2. 31
.80
.13
1.38

1.20
.40
.07
.73

2.17
.42
.07
1. 56

2. 75

2.17

1.15
.55
.60

.14

1.46
.48
.07
.91

1.81
.35
.04
1.42
*

1.57

1.28

.12

Monthly Labor Review—April 1940

990

T able 2.—Monthly Labor Turn-Over Rates (per 100 Factory Employees) in 33
Manufacturing Industries—Continued
Decem­ Janu­
ary
ber
1939
1939

Janu­
ary
1940

Class of turn-over

2.83
.67
.10
2.00

Accessions 2----------------------

3.08
1.77
1.31

3. 33
.73
.12
2.48

2.42
.82
.10
1.50

1.85
.91
.45
.35

1.36

3.10

5.66
.10
5. 56

Paints and varnishes
Separations---------------------Quits------------- -----------Discharges____________
L ay-offs.......... ...............
Miscellaneous separaAccessions 2..............................

2.09
.44
.12
1.45

2.34
.56
.08
1.70

2.53
.71
.15
1.67

.08
2.95
.53
2.42

1.62
.91
.31
.40

1.02
.44
.03
.55

2.39
.60
.08
1.60

5.19

2.41

5.14
3.08
2.06

1.50

4. 71

5.04
.81
.07
4.16

2.61
.71
.13
1.77

4.99

6.15

.11

.14

.06

Decem­ Janu­
ary
ber
1939
1939

Janu­
ary
1940

M en’s clothing

Machine tools

Knit goods
Separations......... ....................
Quits________________
Discharges____________
Lay-ofls.................. - .........
Miscellaneous separa-

Decem­ Janu­
ber
ary
1939
1939

Janu­
ary
1940

Petroleum refining

Paper and pulp
1.94
.54
.13
1. 27

1.60
.42
.09
1.09

2.25
.24
.05
1.87

.13

.09

1.38
.34
1.04

1.73

2.23
.92
1.31

1.94
.40
.12
1.29

1. 92

2. 02
.23
.02
1.77

1.10
.20
.04
.86

1.17

1.77

Printing and publishing
Radios and phonographs
Newspapers

Book and job
Separations....................... —
Quits----------- ------------Discharges____________
Lay-offs--------- ------ ----Miscellaneous separa-

4.95
.39
.24
4.27

Accessions 2. . . ........................

4.61
2.74
1.87

3.83
.40
.10
3.33

4.52
.40
.13
3.99

2.63
.37
.06
2.03

3.95

5.35

1.78
.95
.83

Kay on and allied
products
1.34
.44
.06
.81

Accessions 2-------- -

2.93
.62
2.31

------

1.12
.52
.30
.30

4.86
.71
.24
3.63

1.82

1. 98

4.59
4.25
.34

Accessions 2______________

3.29
1.79
1. 50


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Federal Reserve Bank of St. Louis

1.51

1.68
.91
.77

7.76
.92
.15
6.69

4.52
.87
.11
3. 54

4.02
73
.07
3.12

2.46

5.75

6.03
2. 50
3.53

10. 27
1.30
.11
8. 86

7.78
1.42
.41
5.95

1.89

6.66

.02

7.55
.80
.16
6. 59

4.07
.77
.05
3. 25

1.42

1.71

Rubber tires
2.88
.25
.06
2.55

X. 66
.50
.03
1.13

1.76
.50
.06
1.20

1.82

1.87

.02
.95
.58
.37

Silk and rayon goods

Shipbuilding
1.83
.75
.09
.99

1.98
.50
.08
1.40

5. 65
.87
.07
4. 68

2.80

4.66

2.60
1.31
1.29

5.87
.70
.09
5.08

3. 21
1.08
.08
2.05

4. 20

4.31

.03

.10

.15

See footn otes a t end of table.

1.81

.28

Sawmills
6. 07
.80
.22
4.90

8. 96
1.49
. 18
7. 27

Rubber boots and shoes

1.40
.45
.07
.88

.03

Separations . .
---------Quits_________________
Discharges-----------------Lay-offs.............. ..........
Miscellaneous separa-

2.30
.49
.03
1.78

.17

.05

Separations_______ _______
Quits_________________
Discharges-----------------Lay-offs______________
Miscellaneous separa-

2.82
.11
.14
2. 57

991

Labor Turn-Over

T able 2.—Monthly Labor Turn-Over Rates (per 100 Factory Employees) in 33
Manufacturing Industries— Continued

Class of turn-over

Janu­
ary
1940

Decem­ Janu­
ary
ber
1939
1939

Slaughtering and meat
packing
Separations_________ _____
Quits-------------- ----------Discharges........................
Lay-offs................. ...........
Miscellaneous separa-

5.40
.60
.16
4.39

Accessions 2..............................

8.54
4.62
3.92

Janu­ Decem­ Janu­
ary
ary
ber
1939
1940
1939

Janu­ Decem­ Janu­
ary
ber
ary
1940
1939
1939

Steam and hot-water
heating apparatus

Woolen and worsted
goods

6.97
.67
.20
6.10

6.50
.50
.15
5.85

1.85
.49
.12
1.14

7.69

6.76

2.15
.76
1.39

3.40
.61
.16
2.63

1.34
.51
.03
.80

5.39
1.52
.10
3.64

1.70

2.25

6. 01
4.22
1.79

3.62
.90
.12
2. 60

2.36

4.93

.13

.10

.25

6.02
1.01
.13
4.88

1 Prior to January 1940 miscellaneous separations were included with “quits.”
2 N o breakdown of accessions prior to January 1940.

Turn-Over by States
In the table below are given the quit, discharge, lay-off, miscel­
laneous separation, rehire, and new-hire rates in manufacturing es­
tablishments in 29 States.
More stabilized employment conditions were indicated in the State
of Kentucky than in any of the 29 States included in the survey. The
total separation rate was shown as 1.74 and the accession rate as 1.58
per 100 employees. In contrast, reports received from California
indicated total separations at the rate of 6.21 and accessions at the
rate of 9.74 for every 100 employees. Iowa reported 6.60 and 6.15,
South Carolina, 4.58 and 6.28. The high turn-over in California was
caused partly by changes in the shipbuilding and transportation in­
dustries. The large number of separations reported by the cement
industry and the increases in accessions shown on reports received from
slaughtering and meat packing plants were primarily responsible for
the high rates in Iowa. Reports received from the lumber, fertilizer,
and cotton industries showing a high number of separations and
accessions caused the high turn-over rates shown for South Carolina.
A greater percentage of new hirings was reported in 22 of 28 States
from which data were available as to rehirings and new hirings. Out­
standing new-hire rates were shown in Alabama with a rate of 0.64
for rehirings and 2.06 per 100 employees for new hirings, and Iowa
showing 1.91 as against 4.24. Greater percentages of rehirings were
reported by California, which had a ratio of 7.00 to 2.74 per 100
employees, Texas, 2.62 to 1.68, and Wisconsin, 2.08 to 1.19.

217593— 40-------14


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Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

992

T able 3.—Labor Turn-Over Rates (per 100 Employees) in Manufacturing Industries
in Specified States, January 1940
Accession rates

Separation rates
State
Quit

D is­
charge

L ay­
off 1

Miscel­
laneous
separa­
tion

Total
separa­
tion

New
hiring

Total
acces­
sion

0.92
.95
.90
.83
1.35

0.16
.18
.11
.11
.29

2.78
5.02
2.02
1. 54
1.47

0.07
.06
.10
.02
.07

3.93
6.21
3.13
2. 50
3.18

0.64
7.00
1.97
(2)
1.61

2.06
2. 74
2.97
(2)
2.44

2. 70
9.74
4.94
2.42
4.05

.61
.53
.70
.91
1.02

.16
.11
.19
.09
.12

1.88
2.38
5.67
.68
2.05

.10
.22
.04
.06
.09

2. 75
3. 24
6.60
1.74
3.28

1.87
.00
1.91
. 773
1.99

1.92
1.36
4. 24
.83
2.06

3. 79
2. 26
6.15
1.58
4.05

.75
.56
.43
.56
.51

.16
.10
.10
.10
.09

2.37
2.69
2. 50
2.69
2.23

.16
.06
.08
.10
.18

3.44
3.41
3.11
3.45
3.01

1.73
1. 34
2.49
2. 31
.84

1.99
1.90
1.98
2. 48
1.06

3. 72
3.24
4.47
4. 79
1.90

.97
.52
.87
.50
.52

.12
.11
.14
.12
.09

1.91
2.13
1.68
2. 64
5.13

.10
.15
.13
.13
.07

3.10
2.91
2.82
3. 39
5.81

1.49
1. 36
1.18
1. 20
2.02

2.15
1.56
1.01
1.21
1.11

3.64
2.92
2.19
2.41
3.13

.51
.82
1.73
.52
.28

.07
.16
.30
.22
.20

1.96
2.06
2.25
2.66
2.38

.06
.07
.30
.14
.08

2.60
3.11
4. 58
3. 54
2.94

1.09
1. 72
2. 44
.92
2. 62

1.13
2.38
3.84
2. 25
1.68

2. 22
4.10
6. 28
3.17
4.30

.59
.88
.31
.39

.23
.24
.16
.07

.59
3.23
2. 73
1.59

.33
.10
.46
.07

1.74
4.45
3.66
2.12

1.80
1.31
1.15
2.08

1.81
1.91
1.36
1.19

3.61
3.22
2.51
3. 27

1 Including temporary, indeterminate, and permanent lay-oils.
2 Incomplete data.


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Re­
hiring

Trend o f Employment and Pay Rolls

SUMMARY OF REPORTS FOR FEBRUARY 1940
Total Nonagricultural Employment

APPROXIMATELY 50,000 fewer workers were employed in non­
agricultural industries in mid-February than in mid-January. Be­
cause of the substantial gains in industrial activity during the past
year, however, there were over 1,000,000 more workers engaged in
these occupations in February of this year than in 1939. The decline
from the preceding month was due in large measure to seasonal lay­
offs in retail stores, wholesale houses, and public construction. Such
declines in February have usually been offset in past years by seasonal
increases in manufacturing employment, whereas this year there was
a small decrease less than 0.1 percent, or about 1,800 factory workers.
A number of the major durable-goods industries, such as iron and
steel, electrical machinery, automobiles, hardware, furniture, brick,
glass, and sawmills, reported reduced employment instead’ of the
customary February expansion, resulting in a net decline for the
group as a whole. In factories manufacturing nondurable goods,
employment showed a gain, largely because of seasonal expansion
in the clothing industries.
The current employment declines of about 20,000 in retail trade
and 6,000 in wholesale trade correspond closely to the declines which
took place in February 1939. Class I steam railroads added nearly
3,800 men to their rolls, while in metal mining, oil production, laun­
dries, and dyeing and cleaning, employment fell slightly. In private
building construction and quarrying there were small contraseasonal
employment gains following the sharply curtailed operations which
had been caused by extremely severe weather in January. These
figures do not include emergency employment, which increased
72,000 as follows: 58,000 on projects operated by the Work Projects
Administration and 14,000 on the Out-of-School Work Program of
the National Youth Administration. Employment in the Civilian
Conservation Corps was unchanged from January to February.


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Federal Reserve Bank of St. Louis

993

994

Monthly Labor Review—April 1940

Industrial and Business Employment
Declines in employment were shown by 47 of the 90 manufacturing
industries surveyed by the Bureau of Labor Statistics and by 9 of the
16 nonmanufacturing industries covered. Pay-roll reductions were
reported by 46 of the manufacturing and 8 of the nonmanufacturing
industries.
All manufacturing industries combined showed a small employment
decline—less than 0.1 percent, or 1,800 workers—and a reduction of
0.5 percent, or $1,000,000 in weekly pay rolls. The seasonally ex­
pected changes are gains of 1.6 percent for employment and 4.8 per­
cent for pay rolls. Compared with February of last year, manufac­
turing employment and pay rolls were 8.3 percent and 13.7 percent
higher. Among the more important January-February employment
declines, all of them contraseasonal, were steel (14,200 workers);
automobiles (6,800); brass, bronze, and copper (4,800); brick, tile, and
terra cotta (4,200); silk and rayon goods (4,200); woolen and worsted
goods (2,900); furniture (2,200); and book and job printing (1,900).
Slaughtering and meat-packing firms showed a somewhat smaller than
seasonal decline of 6,100 workers.
The more important employment increases over the month interval,
some greater than seasonal, were in women’s clothing (18,000 workers);
men’s clothing (7,900); boots and shoes (5,300); electric- and steamrailroad cars (4,000); cigars and cigarettes (3,800); stoves (3,700);
millinery (3,500); shipbuilding (2,800); agricultural implements
(2,600); and machine tools (2,300).
Retail stores reduced the number of their employees seasonally by
0.8 percent and their pay rolls by 1.1 percent. Compared with
February of last year, however, there were gains of 2.6 percent in
employment and 3.4 percent in pay rolls. The more important lines
of retail trade which showed employment declines from January to
February were department stores and mail-order houses, women’s
ready-to-wear clothing, men’s and boys’ clothing and furnishings,
shoes, drugs, and fuel and ice. These losses were offset to some extent
by the increases reported by variety and limited-price stores, by stores
dealing in groceries, meats, and vegetables, and by several less
important lines of retail trade.
In wholesale trade there were seasonal declines of 0.4 percent in em­
ployment and 0.5 percent in pay rolls. The more important lines of
wholesale trade showing employment decreases were farm products;
petroleum^products; automotive; lumber and building materials;
chemicals, drugs, and allied products; hardware; and metals and


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Federal Reserve Bank of St. Louis

Trend of Employment and Pay Rolls

995

minerals. Seasonal gains were shown by wholesale dealers in groceries,
dry goods and apparel, electrical goods, and furniture and housefurnishings.
Anthracite employment rose 1 percent but pay rolls fell 37.3 percent
from the high January level, primarily because of sharply curtailed
production in the week beginning February 5. Employment in
bituminous-coal mines remained virtually unchanged while pay rolls
rose 1.2 percent because of increased production. In metal mines
employment fell less than seasonally (0.5 percent). Quarries showed
a contraseasonal employment gain of 0.9 percent coupled with a
pay-roll rise of 4.5 percent. Employment in the public-utility indus­
tries increased because of extra help hired by light and power com­
panies and street railways to cope with storm conditions. The small
gain in employment in private building construction resulted largely
from a resumption of activity following the sharp curtailment caused
by severe weather in January. This was the only February increase
since 1932. Pay rolls, however, decreased 1.8 percent, primarily
because the pay-roll declines reported in certain sections of the
country (New England, the Middle Atlantic States, and the Mountain
States) were much sharper than the employment declines.
The preliminary report of the Interstate Commerce Commission
showed an employment gain by class I railroads from January to
February of 0.4 percent. The total number employed in the current
month was 993,022. Corresponding pay rolls were not available
when this report was prepared; for January they were $163,709,090,
a gain of 2.4 percent from December.
H o u r s a n d e a r n in g s .—The average hours worked per week by
manufacturing wage earners were 37.3 in February, a decrease of 0.5
percent since January. The average hourly earnings of these workers
were 66.3 cents, a gain of less than 0.1 percent from the preceding
month. The average weekly earnings of factory workers were $25.20,
a decline of 0.4 percent since January.
Of the 14 nonmanufacturing industries for which man-hours are
available, 8 showed an increase in average hours worked per week
and 5 reported gains in average hourly earnings. Eight of the 16
nonmanufacturing industries surveyed reported higher average weekly
earnings.
Employment and pay-roll indexes and average weekly earnings in
February 1940 for all manufacturing industries combined, for selected
nonmanufacturing industries, and for class I railroads, with percentage
changes over the month and year intervals, are given in table 1.


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Federal Reserve Bank of St. Louis

996
T

Monthly Labor Review—April 1940

1.— Employment, P ay Rolls, and Earnings in A ll Manufacturing Industries
Combined and in Nonmanufacturing Industries, February 1940 (Preliminary Figures)

a b l e

Employment

Industry

All manufacturing industries
combined 1 _____ . _____
Class I steam railroads 2 ___
Coal mining:
Anthracite 4 __ __
-- Bituminous 4_____ _____
Metalliferous mining_________
Quarrying and nonmetallic
mining____ _________ __ __
Crude-petroleum production...
Public utilities:
Telephone and telegraph«.
Electric light and power 6_.
Street railways and bus­
ses 6 8__________
Trade:
Wholesale ____ ___ _
R eta il6______________ ..
Hotels (year-round)4 8________
Laundries 4_ ___________ ____
Dyeing and cleaning 4________
Brokerage___ . ___________
Insurance______ __ ________
Building construction____ . .

Index,
Febru­
ary
1940

Percentage
change from—
Janu­ Febru­
ary
ary
1940
1939

(.1923-25

=100)

101.4
55.6

Index,
Febru­
ary
1940

Percentage
Aver­ Percentage
change from— age change from—
in
Feb­
Janu­ Febru­ ru­ Janu­ Febru­
ary
ary
ary
ary
ary
1940
1940
1939
1940
1939

(.1923-25

= 100)

- 0 .1
+ .4

+ 8.3
+ 5 .5

52.0
91.8
66.1

+ 1 .0
_(5)
-.5

- 0 .2
+ 3 .5
+ 8 .4

38.1
63.1

+ .9
-.2

75.8
89.4
69.2

97.8
0

- 0 .5
0

+13.7 $25. 20
0
0

- 0 .4
0

+ 4 .9
0

32.9 -3 7 .3 -2 7 .2
88.0 + 1 .2 + 8 .4
63.8
+ .3 +19.6

20.76 -3 8 .0
26.02 + 1 .2
30. 28
+ .8

-2 7 .0
+ 4.7
+10.3

+ .7
- 5 .0

30.9
58.7

+ 4 .5
+ .5

+ 4 .2
- 6 .4

19. 88
34. 22

+ 3 .6
+ .7

+ 3.5
- 1 .5

- .4
+ .2

+ 1 .9
+ 2 .8

95.5
102.5

- 1 .9
+ .9

+ 2 .0 730. 91
+ 4.9 7 34.94

- 1 .5
+ .6

+ 2.1

+ .6

+ .7

71.9

+ 3.8

+ 4 .6 734 . 23

+ 3 .2

+ 3.9

-.4
+ 2 .7
- .8
+ 2 .6
+ 1.8
- .4
+ 3.1
- . 3 + 1.6
- 2 .2
- .8
+• 1 + 1 .2
+ 1 .0 + 1 .9

76.8
79.1
82.9
82.9
64.3
0
0
0

-.5
- 1 .1
+ 2 .2
- .5
- 1 .9
- 1 .1
+ .3
- 1 .8

+ 2.9
+ 3.4
+ .1
+5.5
+ 1.7
- 3 .2
+ 2 .8
+ 8.5

- .1
-.3
+ .4
- .2
- 1 .5
- .4
+ .2
- 2 .7

+ .2
+ .8
-.3
+ 2.3
+ .1
- 1 .1
+ 1.5
+ 6.4

(1929=
100)

90.3
87.1
93.0
95.7
93.6
(3)
(3)
0

Average weekly
earnings

Pay rolls

(1929=
100)

729. 53
721.44
715.48
17. 86
19. 07
7 36.92
736.89
28.84

1 Revised indexes; adjusted to 1937 Census of Manufactures.
2 Preliminary; source—Interstate Commerce Commission.
3 N ot available.
4 Indexes adjusted to 1935 census. Comparable series back to January 1929 presented in January 1938
issue of the pamphlet, Employment and Pay Rolls.
6 Less than a tenth of 1 per cent.
6 Retail-trade indexes adjusted to 1935 census and public-utility indexes to 1937 census. N ot comparable
with indexes published in pamphlets prior to January 1940 or in M onthly Labor Review prior to March
1940. Revised series available upon request.
7 Average weekly earnings not strictly comparable with figures published in issues of the M onthly Labor
Review dated earlier than April 1938 (except for the January figures appearing in the March issue), as they
now exclude corporation officers, executives, and other employees whose duties are mainly supervisory.
8 Covers street railways^and trolley and motorbus operations of subsidiary, affiliated, and successor
companies.
8 Cash payments only; the additional value of board, room,'and tips cannot be computed.

Public Employment
The rapid decline of employment on construction projects financed
by the Public Works Administration, resulting in part from seasonal
influences and in part from the lack of new contract awards, continued
during the month ending February 15, with a further decrease of
24,000. Wage payments of $10,814,000 to the 109,000 workers still
employed were $1,514,000 less than in January.
Because of inclement weather, contractors on low-rent projects of
the United States Housing Authority curtailed employment by 2,000
during the month ending February 15. The 30,000 building-trades
workers employed on these projects were paid $2,781,000 for the
month, a decrease of $207,000 from the preceding month,

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Trend of Employment and Pay Rolls

997

Employment on construction projects financed from regular Fed­
eral appropriations dropped from 207,000 to 204,000 in the month
ending February 15. Increases were reported on ship construction,
building construction, heavy engineering, and miscellaneous projects,
while all other types of projects showed decreases. Pay-roll disburse­
ments of $21,918,000 for all types of projects were $341,000 less than in
January.
Approximately 2,300 men were employed on construction projects
financed by the Reconstruction Finance Corporation in the month
ending February 15. Pay rolls for the month amounted to $242,000.
The number of persons at work on relief projects of the Work
Projects Administration increased 58,000 in February, bringing the
number employed on these projects to 2,250,000. The relief load,
however, was less by 703,000 workers than in February 1939. Wage
payments of $111,475,000 to workers on relief projects were $5,277,000
more than in January. Federal Agency projects financed by the
Work Projects Administration furnished employment to 92,000
workers in February, a decrease of 5,000 from January. Pay rolls
for the month totaled $4,431,000.
The National Youth Administration gave employment to 14,000
additional youths on the Out-of-School Work Program in February,
and 18,000 students were added to the rolls of the Student Aid Program.
Employment in camps of the Civilian Conservation Corps re­
mained approximately the same as in January. Of the 337,000 on
the pay roll, 300,600 were enrollees; 1,600, educational advisers;
300, nurses; and 34,500, supervisory and technical employees. Pay­
roll disbursements for all groups of employees were $14,663,000.
In the regular services of the Federal Government, increases were
reported in the executive, judicial, and military services and a de­
crease in the legislative service. Of the 939,000 employees in the
executive service, 128,000 were working in the District of Columbia
and 811,000 outside the District. Force-account employees (em­
ployees on the pay roll of the United States Government who are
engaged on construction projects and whose period of employment
terminates as the project is completed) were 9.0 percent of the total
number of employees in the executive service. Increased employment
was reported in the Post Office and Navy Departments, Panama
Canal, and Federal Security Agency, while decreases were ^reported
in the War Department, Department of the Interior, Federal Works
Agency, and Tennessee Valley Authority.
The number of men at work on State-financed road projects in­
creased 17,000 in February. Of the 136,000 at work, 16,000 were
engaged in the construction of new roads and 120,000 on maintenance.
Pay-rolls for both types of road work were $9,599,000.


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Federal Reserve Bank of St. Louis

998

Monthly Labor Review—April 1940

A summary of Federal employment and pay-roll data for February
is given in table 2.
T able 2.—Summary of Federal Employment and P a y Rolls, February and January
1940 1 (Preliminary Figures)
Employment
Class

Pay rolls

Per­
February January centage
change

Federal services:
939, 015 3 938, 403
Executive 2__ _ . . . . _____
2,360
Judicial. . . . . ___________
2, 379
5, 883
5,889
Legislative_____________________
449,776
3
434,
745
M ilitary_______________________
Construction projects:
109,083
132,538
Financed by PW A 4____________
USHA low-rent housing_________
30, 268
32,313
2,324
Financed by RFC 3_____ . ____
2,260
Financed by regular Federal appropriations_________________
203, 893 3 206,945
Federal agency projects financed
by Work Projects Administratio n ... _________ ______ _ .
92,468
96,663
Projects operated by W PA ________ __ 2,249, 912 2,192, 283
National Youth Administration:
Out-of-school work program_____
336,002
322,367
Student-aid program_____ _____
455, 510
437,457
Civilian Conservation Corps________
336,861
336,631

+ 0 .1
+ .8
-. 1
+ 3 .5

February

January

$141,918,239 3 $144,062,412
579,826
598, 394
1, 302, 205
1,297,362
31,846,400
3 28, 965,602

Per­
centage
change

- 1 .5
- 3 .1
+ 9.9

-1 7 .7
- 6 .3
+ 2 .8

10,814,115
2,780,651
242,349

12,327, 754
2,987,099
227,685

-1 2 .3
- 6 .9
+ 6 .4

- 1 .5

21,918, 250

3 22, 259,156

- 1 .5

- 4 .3
+ 2 .6

4,430,881
111, 474, 813

4,411,390
106,197, 761

+ .4
+ 5 .0

+ 4 .2
+ 4.1
+ .1

6,144,372
3, 111, 205
14,663, 271

5, 815, 229
2, 858,839
14, 701,057

+ 5 .7
+ 8 .8
- .3

1 Includes data on projects financed wholly or partially from Federal funds.
2 Includes force-account and supervisory and technical employees shown under other classifications to the
extent of 120,874 employees and pay-roll disbursements of $15,796,962 for February 1940, and 123,031 employ­
ees and pay-roll disbursements of $16,201,550 for January 1940.
3 Revised.
4 Data covering PW A projects financed from National Industrial Recovery Act funds, Emergency
Relief Appropriation Acts of 1935, 1936, and 1937 funds, and Public Works Administration Appropriation
Act of 1938 funds are included. These data are not shown under projects financed by the Work Projects
Administration. Includes 8,383 wage earners and $800,435 pay roll for February 1940; 9,466 wage earners
and $862,605 pay roll for January 1940, covering Public Works Administration projects financed from Emer­
gency Relief Appropriation Acts of 1935,1936, and 1937 funds. Includes 95,949 wage earners and $9,505,578
pay roll for February 1940; 117,799 wage earners and $10,854,124 pay roll for January 1940, covering Public
Works Administration projects financed from funds provided by the Public Works Administration Appro­
priation Act of 1938.
* Includes 960 employees and pay-roll disbursements of $96,209 for February 1940; 803 employees and pay­
roll disbursements of $75,852 for January 1940 on projects financed by the R FC Mortgage Co.
+++*+**4

DETAILED REPORTS FOR JANUARY 1940
Industrial and Business Em ploym ent

A MONTHLY report on employment and pay rolls is published as a
separate pamphlet by the Bureau of Labor Statistics. This gives
detailed data regarding employment, pay rolls, working hours, and
earnings for the current month for industrial and business establish­
ments and for the various forms of public employment. This pam­
phlet is furnished free upon request. Its principal contents for the
month of January, insofar as industrial and business employment is
concerned, are reproduced in this section of the Monthly Labor
Review.


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Federal Reserve Bank of St. Louis

Trend of Employment and Pay Rolls

999

Monthly reports on employment and pay rolls are available for the
following gioups. ninety manufacturing industries ; 16 nonmanufac­
turing industries, including private building construction; and class
I steam îailioads. Phe reports for the first two of these groups—
manufacturing and nonmanufacturing—are based on sample surveys
by the Bureau of Labor Statistics. The figures on class I steam rail­
roads are compiled by the Interstate Commerce Commission and are
presented in the foregoing summary.
The indexes of factory employment and pay rolls are based on the
3-year average 1923—25 as 100. They relate to wage earners only and
are computed from reports supplied by representative manufacturing
establishments in 90 manufacturing industries. These reports cover
more than 55 percent of the total wage earners in all manufacturing
industries of the country and more than 65 percent of the wage earn­
ers in the 90 industries included in the monthly survey of the Bureau
of Labor Statistics.
The indexes for the nonmanufacturing industries are based on the
12-month average for 1929 as 100. Figures for mining, laundries, and
dyeing and cleaning cover wage earners only, but the figures for public
utilities, trade, and hotels relate to all employees except corporation
officers, executives, and other employees whose duties are mainly
supervisory. For crude-petroleum production they cover wage earn­
ers and the clerical field force. The coverage of the reporting samples
for the various nonmanufacturing industries ranges from approxi­
mately 25 percent for wholesale trade and dyeing and cleaning to
approximately 80 percent for quarrying and nonmetallic mining,
anthracite mining, and public utilities.
The indexes for retail trade have been adjusted back to 1929 to
conform in general with the 1929, 1933, and 1935 censuses of retail
distribution and to allow for weighting by lines of trade. The indexes
for the public utilities have been adjusted to the 1932 and 1937
censuses of electrical industries.
Data for both manufacturing and nonmanufacturing industries are
based on reports of the number of employees and amount of pay rolls
for the pay period ending nearest the 15th of the month.
The average weekly earnings shown in tables 3 and 4 are computed
by dividing the total weekly pay rolls in the reporting establishments
by the total number of full- and part-time employees reported. As
not all reporting establishments supply man-hours, average hours
worked per week and average hourly earnings are necessarily based
on data furnished by a smaller number of reporting firms. The size
and composition of the reporting sample vary slightly from month to
month. Therefore, the average hours per week, average hourly
earnings, and average weekly earnings shown may not be strictly
comparable from month to month. The sample, however, is believed

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Federal Reserve Bank of St. Louis

1000

Monthly Labor Review—April 1940

to be sufficiently adequate in virtually all instances to indicate the
general movements of earnings and hours over the period shown. The
changes from the preceding month, expressed as percentages, are
based on identical lists of firms for the 2 months, but the changes
from January 1939 are computed from chain indexes based on the
month-to-month percentage changes.
EMPLOYMENT AND PAY-ROLL INDEXES, AVERAGE HOURS, AND
AVERAGE EARNINGS

The employment and pay-roll indexes, as well as average hours
worked per week, average hourly earnings, and average weekly earn­
ings for November and December 1939 and January 1940, where
available, are presented in table 1. The November and December
figures, where given, may differ in some instances from those previously
published because of revisions necessitated primarily by the inclusion
of late reports.
In table 2, indexes of employment and pay rolls are given for all
manufacturing industries combined, for the durable- and nondurablegoods groups of manufacturing industries, and for each of 13 nonman­
ufacturing industries, by months, from January 1939 to January
1940, inclusive. The accompanying chart indicates the trend of fac­
tory employment and pay rolls from January 1919 to January 1940.


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Federal Reserve Bank of St. Louis

T a b l e 1.— Employment,

P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries
MANUFACTURING

[Indexes are based on 3-year average, 1923-25=100, and are adjusted to 1937 Census of Manufactures for all industries except automobiles.
pamphlets prior to August 1939. Comparable series available upon request]
Employment index
Industry

Pay-roll index

Average weekly
earnings1

N ot comparable to indexes published in

Average hours worked
per week i

Average hourly
earnings1

Cents

39.6
37.6

72.7
60.7

72.7
60.5

71.5
59.9

39.4
39.0
42.7
37.9

39.6
39.2
43.0
39.4

76.6
84.1
68.4
59.8

77.2
85.1
68.4
58.7

76.7
84.7
68.2
58.3

39.0
41.3
38.8
36.8
37.9

41.3
42.1
40.2
39.4
39.4

41.3
41.8
40.3
39.7
39.3

60.8
78.2
67.0
68.0
63.8

60.2
78.6
68.0
68.4
63.4

59.8
78.1
68.5
68.2
62.2

28.00
26. 51
28. 52
23.70

38.7
35.7
37.9
37.9

40.2
38.0
39.3
38.6

40.1
39.3
39.3
38.9

70.4
66.7
72.7
61.9

70.5
66.9
73.1
61.9

69.9
67.4
72.5
61.4

26. 66
28.81

25. 77
28.73

41.3
39.3

43.0
40.9

41.7
41.1

62.6
69.5

62.2
70.5

62.0
70.0

29. 74
30.91

30.25
31.07

29. 51
30. 27

40.4
38.9

41.3
39.3

40.9
38.7

73.5
79.6

73.2
79.3

72.3
78.7

32.11

32.48

31.93

39.1

39.4

38.9

82.5

82.8

82.3

101.5

104.1

103.8

98.3

103.7

101.6

$25. 51

$26. 26

$25. 73

37.4

38.6

38. 5

Durable goods, . ------------------------ -------------Nondurable goods__________________________

97.4
105.3

100.0
108.0

98.2
109.2

98.2
98.5

104.6
102.8

100.9
102.4

28.86
21.87

30.04
22.30

29.41
22. 03

38.1
36.9

39.6
37.7

108.3
120.9
117.2
74.4

111.4
123.3
119.8
77.5

111.1
121.8
118.3
77.4

106.3
119.3
124.4
64.8

115.3
129.2
143.5
71.7

114.7
127.3
142.4
73.9

29. 07
31.25
25.87
21.14

30. 71
33.19
29.18
22. 43

30. 55
33.08
29. 32
23.12

37.6
37.1
37.9
35.1

104.6
72.3
103.5
82.2
158.0

108.7
72.6
105.6
83.9
165.6

109.3
70.1
106.4
83.2
166.3

93.3
85.8
108.9
70.8
160.2

101.9
88.2
117.0
77.7
173.7

101.7
83.7
118.6
77.6
171.3

23.28
32. 27
26.01
25.02
24.05

24.46
33.05
27.44
26. 96
25.01

24. 22
32. 59
27.58
27.07
24.49

83.2
78.0
73.4
93.6

86.2
89.3
75.4
95.4

87.3
96.0
76.0
100.6

73.9
64.6
62.6
96.9

79.9
78.5
67.2
100.4

79.8
88.4
67.1
105.4

27.20
23. 75
27.65
23.46

28.38
25. 24
28.74
23.82

96.1
171.9

96.9
176.4

95.3
172.8

97.5
188.8

102.0
204.4

97.3
199.7

25.71
27. 31

112.4
135.2

113.1
130.9

111.0
124.6

119.1
155.8

122.1
151.5

117.1
140.5

126.4

128.1

127.1

128.6

131.6

128.6

66.3

66.2

Cents

65.3

Durable goods
Iron and steel and their products, not including
machinery---------------------------- -- - ---------------Blast furnaces, steel works, and rolling mills___
Bolts, nuts, washers, and rivets______________
Cast-iron pipe_____________ ______________
Cutlery (not including silver and plated
cutlery) and edge tools____________ _______
Forgings, iron and steel_________ . - - - - - Hardware_____
________________________
Plumbers'supplies. ______ _______________
Stamped and enameled ware_______
_____
Steam and hot-water heating apparatus and
steam fittings-------- ---------- -------------------Stoves_______________ ___________________
Structural and ornamental metalwork. . . ___
T in cans and other tinw are.______ __________
Tools (not including edge tools, machine tools,
files, and saws)_____ _____________________
W irew o rk ._______ ____________
_______
Machinery, not including transportation equipment.
Agricultural implements (including tractors)..
Cash registers, adding machines, and calculat­
ing machines--------------------- -----------------See fo o tn o tes a t end o f table.


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Federal Reserve Bank of St. Louis

1001

Cents

All manufacturing_____________________________

Trend of Employment and Pay Rolls

Novem­ January Decem­ Novem­ January Decem­ Novem­ January- Decem­ Novem­
Decem­ Novem­
January Decem­
ber
ber
ber
ber
ber
ber
ber
ber
ber January
ber
1940
1940
1940
1940
1940
1939
1939
1939
1939
1939
1939
1939
1939
1939
1939

a b l e

1.— Employment, P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries— C o n tin u ed

1002

T

MANUFACTURING—Continued
[Indexes are based on 3-year average, 1923-25=100, and are adjusted to 1937 Census of Manufactures for all industries except automobiles.
pamphlets prior to August 1939. Comparable series available upon request]
Employment index
Industry

Average weeklyearnings

Pay-roll index

N ot comparable to indexes published in

Average hours worked
per week

Average hourly
earnings

Durable goods—Continued
Machinery—Continued.
Electrical machinery, apparatus, and supplies.
Engines, turbines, water wheels, and wind­
m ills____________________________________
Foundry and machine-shop products______
Machine tools__________ ___________________
Radios and phonographs____ _________ .
Textile machinery and parts. _____________
Typewriters and parts. ---------- ----------- . . .

101.7

102.6

100.4

112.4

114.2

109.6

$29.67

$29.89

$29.34

39.7

40.4

40.2

125.3
97.2
196.8
136.2
86.2
122.6

119.8
97.2
192.2
162.3
85.7
127.3

109.8
95.4
183.9
179.7
84.3
128.0

161.4
95.2
258.5
122.2
83.5
111.3

156.6
98.6
256.2
148.8
85.7
121.5

139.1
94.3
237.8
170.3
82.4
125.7

34.10
29.27
36.41
22.22
26. 65
22.27

34.49
30.35
37.03
22.71
27.48
23.41

33.46
29.43
35.91
23.47
27.01
24.09

42.6
40.4
47.4
37.0
40.6
34.9

43.0
41.7
48.2
38.6
41.5
36.6

Transportation equipment______________________
115. 5
116.5
102.9
118.3
124.1
105.6
A ir c r a ft.___ _______ . . . . . . . _________ 2,029.7 1,886.0 1,749.5 1,900.6 1,777.9 1,718.0
Automobiles____. . . ._ _ . . . ____________
115.8
118.1
102.3
106.0
119.9
127.9
Cars, electric- and steam-railroad... _______
52.8
52.1
47.3
46.8
40.2
46.5
Locomotives___ . . . . . . ___________________
28.3
27.2
28.0
26.1
25.1
27.5
Shipbuilding ____________________________
139.4
137.5
132.9
148.0
152.8
141.0

33.23
29.21
34.28
28.06
29.49
32. 32

34.51
29. 39
35.81
28.12
30.12
32.90

33.26
30.65
34.25
27.03
29.54
31.85

37.4
41.5
36.7
38.5
37.7
38.2

Nonferrous metals and their products.. ________
Aluminum manufactures____ _____________
Brass, bronze, and copper products. _______
Clocks and watches and time-recording devices.
Jewelry___________________ . . _____ _____ _

109.7
169.5
135.7
90.6
89.0

112.9
170.4
137.7
93.1
98.6

113.5
174.3
137.4
93.1
107.0

108.7
191.5
150.3
92.9
72.7

116.5
196.8
158.9
96.9
86.5

115.4
195.5
157.0
99.8
90.9

27. 37
27.62
30.28
22.75
22.89

28.67
28.22
31.63
23.09
24.63

28. 26
27.37
31.39
23.84
23.94

Lighting equipment 2______________________
Silverware and plated ware ________________
Smelting and refining—copper, lead, and zinc.

92.8
71.7
86.9

98.0
76.7
86.9

93.4
76.2
86.0

74.2
61.3
86.5

84.7
76.2
87.8

78.2
75.1
85.3

25. 54
24.74
27. 94

27.66
28. 72
28.36

lum ber and allied products............................ ............
Furniture_________ _______ ___ __________
Lumber:
M ill work_______________________ _____
Saw m ills__________ ___________________

67.3
90.3

71. 1
94.8

73.0
96.8

58.8
74.6

65.2
85.5

68.8
86.2

19.10
19. 95

61.5
59.5

63.6
63.3

64.1
65.5

47.0
51.1

52.0
55.4

52.8
60.8

21. 27
17. 73


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Federal Reserve Bank of St. Louis

Cents

Cents

Cents

74.9

74.2

42.1
40.9
47.0
40.3
41.2
37.9

80.4
72.6
76.9
59.8
65.8
63.7

80.5
72.7
77.0
59.0
66.3
64.0

79.9
72.0
76.5
58.3
65.7
63.5

38.5
42.3
38.1
38.6
38.6
38.2

37.6
41.8
37.2
37.1
38.0
37.9

89.4
74.1
93.4
72.9
78.2
84.6

90.1
73.5
94.0
72.9
78.1
85.8

88.6
74.8
92.2
72.8
77.8
84.4

39.2
39.3
40.5
38.5
37.7

40.9
40.3
41.8
39.1
40.1

41.0
40.6
41.7
40.4
41.0

70.1
70.1
75.2
59.5
60.5

70.3
70.0
75.8
59.6
61.2

69.0
67.4
75.3
59.1
57.7

26. 84
28.52
27.80

36.2
38.9
38.9

39.5
44.2
39.6

39.5
44.0
39.1

70.6
63.0
71.9

70.0
65.1
71.7

68.0
65.2
71.2

20.18
21.87

20.63
21. 63

36. 9
37.4

38.6
40.3

39.7
40.5

51.2
53.8

51.3
54.4

51.4
53.6

22.73
18. 11

22.94

39.3
36.1

41.9
37.0

42.6
38.6

54.2
49.1

54.2
48.9

54.0
49.7

19. 20

73.1

Monthly Labor Review—April 1940

Novem­ January Decem­ Novem­ January Decem­ Novem­ January Decem­ Novem­ January Decem­ Novem­
January Decem­
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
1940
1940
1940
1940
1940
1939
1939
1939
1939
1939
1939
1939
1939
1939
1939

77.7
57.0
57.7
105.6
38.8
92.4

83.6
62.6
66.4
108.5
48.5
94.9

85.5
64.7
70.2
109.3
50.1
95.1

66.9
43.4
50.5
113.1
23.9
80.7

78.4
51.6
63.2
118.9
34.8
90.1

78.9
54.3
66.5
121.0
38.5
89.1

23. 58
19. 52
24.98
26.27
21.54
22.20

25.01
21.18
27.33
26.78
25.00
24.12

25.24
21.58
27.06
27.06
26.76
23.83

35.1
34.8
35.5
35.0
31.4
37.0

37. 5
37.9
39.0
36.4
36.0
39.0

37.9
38.5
38.8
36.9
38.0
38.4

66.4
55.8
70.4
74.8
69.0
62.9

55.8
70.1
73.7
70.4
62.7

65.7
55.6
69.8
73.4
71.4
62.1

Textiles and their products_________
Fabrics____________ ____ ______
Carpets and rugs............. ........
Cotton goods....... ................. .
Cotton small wares..............

103.7
96.1
82.3
95.9
87.5

105.8
98.7
84.4
96.8
91.0

107.9
100.9
85.2
96.9
92.9

87.6
84.8
72.3
89.0
81.4

91.8
89.5
75.8
91.5
87.3

92.9
91.7
75.9
90.9
90.3

17. 26
17.07
24.31
15.18
18.05

17.72
17. 54
24.86
15. 43
18. 61

17. 68
17. 64
24. 67
15.36
18.89

34.8
36.0
36.8
36.8
37.9

35.9
37.2
37.6
37.6
39.0

36.1
37.4
37.5
37.4
39.8

49.9
48.1
66.2
41.2
48.4

49.7
47.9
66.1
41.0
48.1

49.3
47.7
65.7
41.0
48.1

Dyeing and finishing textiles.
Hats, fur-felt.............................
Hosiery___________________
Knitted outerwear_________
Knitted underwear..............

129.7
90.9
143.8
59.4
75.4

133.2
91.3
148.2
64.8
78.9

134.2
88.4
154.6
77.7
80.8

109.5
84.8
146.1
47.4

116.4
88.7
159.0
49.9
72.4

115.2
73.1
170.0
63.5
75.0

20. 64
25. 26
18. 49
17.12
14.78

21.33
26.23
19. 52
16.54
15.48

20. 96
22. 41
19.95
17. 62
15.72

37.6
35.3
33.1
35.3
35.3

39.1
36.6
35.4
34.7
37.0

38.7
31.4
36.0
37.2
37.5

54.4
73.3
55.5
48.4
42.4

54.0
73.2
55.4
47.1
41.9

53.7
71.2
55.4
46.8
42.1

Knitted cloth______________
Silk and rayon goods_______
Woolen and worsted goods. .
Wearing apparel..................... ........
Clothing, men’s........................

139.9
63.2
86.5
116.1
105.5

144.1
65.2
91.3
116.9
105.1

154.1
67.6
95.0
118.7
104.7

112.0

116.4
56.8
78.4
90.2
80.2

131.4
60.0
81.9
89.2
76.1

18.51
16.03
19. 46
17.85
19.60

18.34
16.58
19.83
18. 26
19. 76

19.27
16.90
19.89
17.81
18.84

37.6
35.0
36.2
32.4
32.9

37.0
36.5
37.1
33.5
33.5

39.2
37.4
37.8
33.7
32.2

47.9
45.5
53.7
53.3
59.0

48.7
45.2
53.4
53.3
59.2

48.0
44.9
52.7
52.5
58.4

Clothing, women’s_________
Corsets and allied garments..
M en’s furnishings__________
M illinery_________________
Shirts and collars__________

162.2
114.8
111.5
78.7
119.5

164.6
116.0
129.0

112.8

66.1
122.6

168.0
116.6
136.7
66.5
127.6

117.4
119.2
126.0
46.5
111.0

116.1
120.8
138.8
48.5
117.5

18. 74
15.87
13.15
21.47
13.11

19.24
16.95
15.13
20.21
14. 47

18.64
17.12
15. 73
*20. 94
14.80

32.0
33.3
32.3
32.3
32.0

32.6
35.7
35.2
32.5
35.5

33.6
36.6
37.4
32.5
36.1

52.8
47.1
40.1
62.6
41.3

53.3
46.7
41.3
61.6
40.9

51.8
46.1
41.1
63.6
40.9

Leather and its manufactures_______
Boots and shoes_________ ____
Leather_______________________

97.4
95.8
87.4

93.2
90.8
87.0

91.9
89.0
87.9

82.3
79.1
86.1

75.4
70.2
86.5

71.1
64.6
87.2

19. 89
18. 78
24. 55

19.09
17.62
24.88

18.20
16.46
24. 76

37.2
37.0
38.3

35.7
34.9
38.8

33.8
32.5
38.7

53.4
50.8
64.2

53.7
51.1
64.3

53.9
51.4
63.9

Food and kindred products_________
Baking_____ ______ ___________
Beverages_____________________
Butter________________________
Canning and preserving..............

119.5
141.4
254.9
89.7
91.0

126.0
144.8
260.6
92.5
101.4

129.8
146.5
261.2
94.1
121.2

117.1
131.1
278.8
75.1
80.6

124.4
134.1
298.8
78.1
89.3

125.3
136.9
293.7
79.1
101.2

25. 32
25.84
32.13
22.31
17.41

25.48
25.83
33.56
22.51
17. 37

24. 80
25.97
32.89
22.49
16. 53

39.7
40.9
36.9
45.0
35.4

40.5
41.0
38.5
45.8
35.6

40.1
41.7
37.7
46.1
34.5

64.1
63.5
87.7
49.2
50.5

63.3
63.3
88.0
48.8
50.6

62.5
62.7
88.1
48.4
49.0

Confectionery_________________
Flour_________________________
Ice cream_____________________
Slaughtering and meat packing..
Sugar, beet_________________ _
Sugar refining, cane____________

82.9
79.0

96.0
78.7

66.1
111.8

68.0
112.1

67.8
90. 1

191.9
95.2

98.0
77.9
69.3
107.9
286.8
93.8

81.2
73.4
55.6
118.9
62.6
72.6

99.8
72.2
57.3
121.5
173.5
75.8

96.2
70.5
57.8
112.7
283.0
77.4

19.07
25.18
29. 55
27.94
23. 98
22.68

20.25
24. 83
29. 62
28. 51
23.54
22. 39

19. 06
24.48
29.32
27.45
25. 69
23. 21

38.4
41.2
44.3
41.2
34.8
35.0

41.4
40.8
45.2
42.1
45.2
36.2

39.5
40.5
44.1
40.1
50.3
36.9

49.8
60.8
64.7
67.7
69.0
64.9

49.3
60.4
64.0
67.8
53.0
61.8

48.8
60.2
64.2
68.4
51.6
62.8

Stone, clay, and glass products....................................
^ Brick, tile, and terra cotta________ _____ ____
g Cement___________________________________
Glass.___ ________ _______________ _______ _
Marble, granite, slate, and other products____
Pottery____________ ____ ____________ _____

66 .0

Nondurable goods

110.4
95.0
58.5
97.7

1003


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

53.1
73.1
87.4
80.1

Trend of Employment and Pay Rolls

See fo o tn o tes a t end o f table.

66.0

1.— Em ploym ent, P a y Rolls, H ours, and Earnings in M anufacturing and Nonmanufacturing Industries — Continued

1004

T able

MANUFACTURING—Continued
[Indexes are based on 3-year average, 1923-25=100, and are adjusted to 1937 Census of Manufactures for all industries except automobiles.
pamphlets prior to August 1939. Comparable series available upon request]
Employm ent index

Average weekly
earnings

Pay-roll index

Not comparable to indexes published in

Average hours worked
per week

Average hourly
earnings

Industry

Nondurable goods—Continued
Tobacco manufactures,,. . . . _______ _________
Chewing and smoking tobacco and snufl____
Cigars and cigarettes . . . __________________

59.0
63.7
58.4

65.8
60.8
66.3

66.4
61.0
66.9

Paper and printing.___________________________
Boxes, paper. _______________ _____ .
. .
Paper and p u lp .._ ____________ _ _
_
Printing and publishing:
Book and job__________________________
Newspapers and periodicals____________

115. 1
116.2
114.1

118.5
124.9
115.1

117.5
128.9
115.2

102.6

104.1
118.7

116.6

121.0
121.6

122.3
122.3
122.3
137.6
114.9

113.5

Chemical, petroleum, and coal products_________
Petroleum refining___ _____________________
Other than petroleum refining_______ _____
Chemicals. ___________
____________
Cottonseed—oil, cake, and meal____ ___

120.9
135.8
103.2

Druggists’ preparations_____ ___________
Explosives_______ ___________________
Fertilizers________ __________________
Paints and varnishes____
____ ____
Rayon and allied p rodu cts... _____ _ . _
Soap__________________________________

118.5
103.5
105.1
123.5
313.5
83.5

124.2
312.2
85.1

Rubber products_______________________________
Rubber boots and shoes. _______________
Rubber tires and inner tubes___________ .
Rubber goods, other .
______ ____ . . .

90.0
59. 1
73. 6
150.3

93.0
63.1
74.7
156.5


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

118.8
107.8

102.2

52. 9

Cents

Cents

39. 5
41.7
42.5

78.4
55.9
63.5

78.3
55.0
63.1

77.4
54.5
62.7

39.6
36.7

38.7
36.1

101.8

81.5

80.9
102.7

101.6

38.4
35.5
39.4
39.8
46.3

39.0
36.4
39.8
40.3
46.2

38. 9
36.1
39.8
40.3
46.0

68.0

75.6
97.4

80.0
33.5

75.1
97.2
67.5
79.6
33.1

75.1
97.2
67.4
79.2
33.0

25. 37
32. 98
15. 32
28.72
25.42
27. 60

39.6
38.2
34.0
39.7
38.8
39.4

40.2
39.5
34.2
40.3
38.8
39.7

40.6
39.9
34.0
40.2
38.6
39.6

59.5
83.9
42.0
71.8
67.6
71.3

60.0
82.8
42.8
71.4
66.5
70.7

59.5
82.6
45.1
71.5
65.9
69.7

28. 95
24. 51
33.64
24. 55

36.6
36.0
35.1
38.5

38.1
39.1
36.1
39.9

38.0
40.1
35.1
40.4

77.6
60.8
96.5
61.7

77.6
61.1
97.4
61.2

76.8
61.1
96.1
61. 2

68.1

62.3
67.2
61.6

62.9
67.7
62.2

S16. 52
17.33
16. 35

$17. 47
17.90
17. 37

$17. 50
17. 92
17. 40

33.3
33.2
33.3

35.8
34.2
36.0

36.6
34.2
36.9

117.6

110.0
121.2

116.8
136.9
122.5

114.2
145.4
124.6

28. 66
20.75
25. 35

29.51
21.92
26.19

29. 26
. 60
26. 61

22

38.1
37.5
40.0

39.4
40.1
41.6

101.0

91.6
105.7

94.1
115.0

88.7
109.3

31.30
37.55

31.63
39.04

30. 71
37.81

38.9
35.7

123.7
122.3
137.7
119.7

122.6

131.0
133.5
130.3
159.8
99.3

133.4
137.6
132.0
162.3

133.1
137.9
131.6
161.5
114.8

29.22
34.42
27.24
31.82
15. 69

29.61
35. 27
27. 35
32.07
15.64

29. 49
34.94
27.26
31.86
15. 60

117.7
106.1
91.5
125.1
313.4

88.6

129.2
120.9
82.5
128.5
320.4
100.3

132.2
128.7
82.2
130.5
314.0

131.1
127.6
75.9
131.5
310.4
104.4

24.76
32.08
14. 27
28. 44
26.24
28.12

25.37
32.74
14.65
28. 75
25.82
28.09

93. 9
62.3
74.5
161.3

94.1
56.4
85.6
144.8

100.5
65.7
89.9
155.4

99.8

28. 54
21.92
34.08
23. 53

29. 50
23.90
35.11
24.19

51.0

110.2

102.1

66.6

85.9
162.6

49.6
51.8
49.3

48. 9
52.5
48.4

Cents

47. 9
52.4
47.4

80.6

Monthly Labor Review—April 1940

Novem­ January Decem­ Novem­ January Decem­ Novem­ January Decem­ Novem­ January Decem­ Novem­
January Decem­
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
1940
1940
1940
1940
1940
1939
1939
1939
1939
1939
1939
1939
1939
1939
1939

NONMANUFACTURING
[Indexes are based on 12-month average, 1929=100]

51.5
91.8
66.6
37.5
63.1

51.0
92.6
67.3
44.0
63.8

51.3
94.9
66.5
47.1
63.8

52.5
87.0
63.1
29.8
58.4

26.6
84.3
65.0
39.2
59.2

42.0
96.3
63.9
42.9
59.6

33.46
25. 71
29.68
19. 66
33.99

17.16
24.65
30. 25
21.99
34.11

26.90
27.59
30. 36
22.14
34.31

36.8
29.4
40.6
34.9
37.5

18.9
28.1
41. 2
39.5
37.8

28.8
31.4
41.5
40.1
38.3

91.9
87.6
73.5
56.3
88.8

91.2
88.9
73.7
55.9
88. 3

92.3
88.8
73.6
54.8
87.8

76.2
89.0
68.8

75.8
90.1
69.0

76.1
90.3
69.3

98.6
101.1
69.0

97.4
102.4
69.8

96.4
102.5
69.4

31.79
34. 63
33.18

31. 62
34.64
33.29

31.22
34. 62
33.02

39. 2
39. 1
45.5

38.8
39.7
46.0

39.1
40.0
45.7

80.5
88.7
72.0

80.9
87. 1
71.5

80.3
86.5
71.5

90.5
88.3
103.0
90.7
78.2

92.2
104.2
106.0
146.4
100.1

92.1
93.3
103.8
105.9
90.6

77.3
80.8
95.3
84.3
73. 6

79.1
91.8
96.5
125.8
89.5

79.0
83.6
94.3
92.4
82.6

29.65
21. 43
23. 48
18. 26
22.09

29.79
20.11
23. 21
17.05
20.90

30.18
20. 71
23.12
17. 30
21.36

40.6
43.0
43.5
39.2
39.7

41.6
43.0
43.6
40.3
39.4

41.5
42.6
43.7
38.5
38.7

72.9
54.1
52.2
46.2
55.1

71.5
51.5
51.5
41.5
53.0

72.4
53.5
51.9
44.9
54.6

Furniture 5_____ ____________________
Automotive 5___ _____________________
Lum bers___________ ________ _____ .
Hotels (year-round) 3 4 7________________________
Laundries3_____________________________
..

76.0
81.1
69.6
91.4
95.8

83.1
81.8
73.4
90.8
95.6

80.6
81.4
75.1
91.8
95.6

66.8
72.8
64.4
.81.0
83.3

75.2
76.3
69.2
81.1
83.7

72.1
75.3
70.7
81.8
82.9

28. 31
26.69
25. 77
15. 39
17. 76

29.16
27.73
26.33
15.51
17.88

28. 66
27. 51
26. 30
15.54
17.68

43.5
47.2
41.6
46.2
42.9

44.2
47.6
42.8
46.4
42.9

44. 1
47.6
42.8
46.5
42.4

67.8
56.7
63.3
33.2
41.5

67.4
58.2
62.7
33.1
41.7

67.1
57.9
62.8
33.2
41.7

Dyeing and cleaning 3__________________________
Brokerage 4 8___ _ _ __________ . . . . . . _______
Insurance 4 8___ _____________________ _____
Building construction 8____________ _____ _______

93.9
-.9
+• 6
-1 6 .7

97.4
-.8
-(10)
- 6 .9

97.8
-.9
-.1
- 3 .1

65.8
- 1 .7
+• 6
-2 0 .1

69.9
+ 1.7
+ .9
- 7 .0

70.8
-1 .2
+ .3
- 3 .6

19. 41
37. 15
36.70
29.74

19.86
37.44
36.34
30.91

19.89
36.44
36.21
30.89

39.9
(9)
(8)
30.8

41.5
(9)
(9)
32.8

41.2
(9)
(»)
33.4

49.9
(9)
(9)
97.0

49.5
(9)
(9)
94.3

50.0
(“)
(9)
92.6

1 Revised series. Mimeographed sheets, giving averages by years, 1932 to 1938, inclu­
sive, and by months, January 1938 to September 1939, inclusive, available on request.
Average hours and average hourly earnings are computed from data supplied by a
smaller number of establishments than average weekly earnings, as not all reporting firms
furnish man-hours. The figures are not strictly comparable from month to month because
of changes in the size and composition of the reporting sample.
2 Average weekly earnings, average hours, and average hourly earnings not comparable
to previously published averages because of change in reporting sample. Comparable
October average weekly earnings, $26.86; average hours, 39.1; average hourly earnings,
68.7 cents.
2 Indexes adjusted to 1935 census. Comparable series back to January 1929 presented
in January 1938 issue of Employment and Pay Rolls.
4 Average weekly earnings, hourly earnings, and hours not strictly comparable with
figures published in pamphlets prior to January 1938 as they now exclude corporation
officers, executives, and other employees whose duties are mainly supervisory.

1005


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6 Retail trade indexes adjusted to 1935 census and public utility indexes to 1937 census.
Comparable series for earlier months available upon request.
9 Covers street railways and trolley and motorbus operations of subsidiary, affiliated,
and successor companies; formerly x“electrie-railroad and motorbus operation and
maintenance.”
7 Cash payments only; additional value of board, room, and tips not included.
8 Indexes of employment and pay rolls are not available; percentage changes from pre­
ceding month substituted.
« N ot available.
10 Less than Ho of 1 percent.
*Average weekly earnings not comparable to previously published average because of
change in reporting sample due to addition of new firms. Comparable October figure
is $21.53.

Trend of Employment and Pay Rolls

Coal mining:
Anthracite 3______________________ _________
Bituminous 3_______________ _____ _________
Metalliferous mining___ ___ . . . ______________
Quarrying and nonmetallic m in in g ____ _________
Crude-petroleum production____________ _____
Public utilities:
Telephone and telegraph 4 9_________________
Electric light and power 45_________________
Street railways and busses4 8 9. ____ ________
Trade:
Wholesale 4_______________ ________________
R e ta il4 5__________________________________
Food 5_____ ____ ___________ ____ ______
General merchandising4 5........ ... __ ____
A pparel5_____ ________________________

1006

EMPLOYMENT AND PAY ROLLS
ALL MANUFACTURING IN D U S T R IE S
1923-25=100

INDEX

INDEX

140

140

120

E: m p l OYMENT ^
1

100

jf

100

i

\f 1

1

80

80

PAY ROLl_S
60

60

40

40

20
U N ITED

1919

1920

1921

1922

ST A T E S B U R EA U OF L A B O R


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Federal Reserve Bank of St. Louis

1923

1924

1925

1926

1927

1928

1929

1930

1931

1932

1933

1934

1935

S T A T IS T IC S ____________________________________________________________________________________ __________ ___________________________

1936

1937

1938

1939

A D JU S T E D

1940

20

TO 1937 C E N SU S

Monthly Labor Review—April 1940

120

1007

Trend of Employment and Pay Rolls

T a b l e 2.— Indexes o f Em ploym ent and P a y Rolls in Selected M anufacturing 1 and Non
m anufacturing 2 Industries, Jan u ary 1939 to Janu ary 1940, Inclusive
Employment
1940

1939

Industry
Av.

1939

Jan. Feb. Mar. Apr. M ay June July Aug. Sept

Oct. Nov. Dec. Jan.

Manufacturing
All industries____________ 96.8 92.2 93.6 94.3 94.1 93.0 93.4 93.5 96.3 100.2 103.6 103.8 104.1 101.5
Durable goods 3______ 87.8 82.3 83.3 84.1 84.8 84.0 84.6 83.0 83.9 89.8 96.1 98.2 100.0 97.4
Nondurable goods4___ 105.5 101. 7 103.5 104.0 103.0 101.6 101.8 103.5 108.1 110.2 110.8 109.2 108.0 105.3

Nonmanufacturing
Anthracite mining 5______
Bituminous-coal m ining6. .
Metalliferous m in ing,.
Quarrying and nonmetallic
mining. _ _____________
Crude-petroleum production_____ _____ _______
Telephone and telegraph A
Electric light and power A_
Street railways and busses 6 7____ --- _______
Wholesale trade_________
Retail trade A-_ _______
Year-round hotels 8.............
Laundries 5______________
Dyeing and cleaning 8.........

50.6 50.0 52.2 51.7 53.0 52.6 51.2 44.7 48.5 49.4 51.9 51.3 51.0
78.6 88.7 88.6 87.4 25.9 47.9 78.3 79.4 81.4 85.4 93.0 94.9 92.6
62.7 62.6 60.9 61.0 61.5 61.9 61.6 60.4 60.4 62.9 65.3 66.5 67.3
44.6 38.3 37.9 40.1 43.0 45.6 47.3 47.5 48.1 47.9 48.0 47.1 44.0

51.5
91.8
66.6
37.5

65.8 67.0 66.4 66.2 65.8 66.1 67.0 67.3 66.7 65.0 64.3 63.8 63.8 63.1
75.8 75.1 74.3 74.4 75.1 75.8 76.4 76.5 76.6 76.4 76.5 76.1 75.8 76.2
89.0 87.4 86.9 87.0 87.7 88.2 89.2 90.0 90.6 90.6 90.4 90.3 90.1 89.0
69.0 68.6 68.7 68.9 68.5 68.9 69.3 69.1 69.2 69.2 69.5 69.3 69.0 68.8
89.2 88.3 87.9 87.4 87.3 87.2 88.1 87.9 89.0 90.5 92.4 92.1 92.2 90.5
89.8 85.4 84.9 86.9 88.5 88.8 89.4 87.2 86.3 90.5 91.7 93.3 104.2 88.3
92.0 91.8 92.6 92.7 93.2 93.9 92.8 90.3 89.8 91.3 92.9 91.8 90.8 91.4
95.9 93.3 92.8 92.9 93.5 95.5 98.7 100.0 99.1 97.8 96.0 95.6 95.6 95.8
101.3 94.2 92.1 95.4 102.2 107.0 110.1 106.5 102.7 105.2 105.1 97.8 97.4 93.9
Pay rolls

Manufacturing
All industries____________ 90.8 83.7 86.0 87.6 85.5 85.0 86.5 84.4 89.7 93.8 101.6 101.6 103.7 98.3
Durable goods 3______ 85.2 76.0 77.7 79.4 79.5 78.8 80.7 76.0 81.5 87.8 99.6 100.9 104.6 98.2
Nondurable goods 4___ 97.0 92.4 95.3 96.7 92.2 91.9 93.0 93.7 99.0 100.5 103.9 103.4 102.8 98.5

Nonmanufacturin g
Anthracite mining 8 _____ 39.5
Bituminous-coal mining A . 69.9
56.0
Metalliferous m ining____
Quarrying and nonmetallic
mining________________ 38.7
Crude-petroleum produc61.0
tion______ __________
Telephone and telegraph 6 95.6
Electric light and power A _ 100.4
Street railways and busses 6 7 - --- - _______ 69.5
Wholesale trade_________ 76.6
Retail trade 6____________ 80.8
Year-round hotels 8______ 81.2
Laundries 8 _____________ 83.1
Dyeing and cleaning 8____ 73.6

38.0 45.2 34.2 43.4 57.0 36.1 25.2 33.8 40.1 52.2 42.0 26.6 52.5
78.2 81.2 77.8 17.6 20.4 66.5 64.5 74.6 80.2 97.6 96.3 84.3 87.0
55.3 53.4 53.6 52.6 54.1 53.8 48.5 53.0 55.1 63.4 63.9 65.0 63.1
30.2 29.7 33.1 35.9 39.7 41.7 40.9 42.9 42.7 45.6 42.9 39.2 29.8
60.9 62.7 61.3 60.8 61.2 62.5 61.9 62.0 60.8 58.8 59.6 59.2 58.4
93.9 93.6 93.8 94.0 95.7 95.7 96.6 96.3 96.9 97.2 96.4 97.4 98.6
97.3 97.7 98.2 98.3 99.9 101.2 101.1 102.2 102.2 102.0 102.5 102.4 101.1
70.0 68.7 69.3 68.4 68.9 70.0 69.4 69.8 69.2 71.2 69.4 69.8 69.0
75.5 74.6 74.7 74.8 74.9 75.8 75.8 76.2 78.0 80.3 79.0 79.1 77.3
77.6 76.5 77.7 79.6 79.9 81.1 79.5 78.0 80.9 83.2 83.6 91.8 80.8
80.2 82.8 81.1 81.9 82.4 82.0 79.1 79.2 80.4 82.2 81.8 81.1 81.0
79.6 78.6 79.3 79.9 83.9 86.9 88.0 85.9 84.5 83.9 82.9 83.7 83.3
65.8 63.2 67.7 73.3 83.0 84.2 77.1 73.0 78.3 77.3 70.8 69.9 65.8

« 3-year average 1923-25=100—adjusted to 1937 Census of Manufactures.
2 12-month average for 1929=100. Comparable indexes for quarrying, metal mining, and crude-petroleum
production are in November 1934 and subsequent issues of Employment and Pay Rolls, or in February
1935 and subsequent issues of M onthly Labor Review. For other nonmanufacturing indexes see notes 5
and 6.
» Includes: Iron and steel, machinery, transportation equipment, nonferrous metals, lumber and allied
products, and stone, clay, and glass products.
4 Includes: Textiles and their products, leather and its manufactures, food and kindred products, tobacco
manufactures, paper and printing, chemicals and allied products, products of petroleum and coal, rubber
products, and a number of miscellaneous industries not included in other groups.
5 Indexes have been adjusted to the 1935 census. Comparable series from January 1929 forward are pre­
sented in January 1938 and subsequent issues of Employm ent and Pay Rolls.
« Retail trade indexes adjusted to 1935 census and public utility indexes to 1937 census. Comparable series
January 1929 to December 1939 available in mimeographed form.
7 Covers street railways and trolley and motorbus operations of subsidiary, affiliated, and successor com­
panies.

217593— 40-------15


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1008

Monthly Labor Review—April 1940

TREND OF INDUSTRIAL AND BUSINESS EMPLOYMENT, BY STATES

A comparison of employment and pay rolls, by States and geographic
divisions, in December 1939 and January 1940 is shown in table 3
for all groups combined and for all manufacturing industries combined
based on data supplied by reporting establishments. The percentage
changes shown, unless otherwise noted, are unweighted—that is, the
industries included in the maunfacturing group and in the total for
all groups have not been weighted according to their relative import­
ance.
The totals for all manufacturing industries combined include figures
for miscellaneous manufacturing industries in addition to the 90
manufacturing industries presented in table 1. The totals for all
groups combined include all manufacturing industries, each of the
nonmanufacturing industries presented in table 1 (except building
construction), and seasonal hotels.
Similar comparisons showing only percentage changes are available
in mimeographed form for all groups combined, all manufacturing,
anthracite mining, bituminous-coal mining, metalliferous mining,
quarrying and nonmetallic mining, crude-petroleum production,
public utilities, wholesale trade, retail trade, hotels, laundries, dyeing
and cleaning, and brokerage and insurance.
T a b l e 3 .— Comparison of Em ploym ent and P a y Rolls in Identical Establishments in

December 1939 and Janu ary 1940, by Geographic D ivisions and by States
[Figures in italics are not compiled by the Bureau of Labor Statistics, but are taken from reports issued by
cooperating State organizations]
Manufacturing

Total—all groups

Geographic divi­
sion and State

Per­
Per­
Per­
Per­
cent­ Amount cent­
cent­ Amount cent­
N um ­ N um ­
N um ­ N um ­
age
age
age
age
pay
pay
ber of ber on change of
ber of ber on change of
roll (1 change
roll (1 change
estab­ pay roll from
from
from
from
pay
roll
estab­
week)
week)
lish­ January D e­ January
lish­ January D e­ January
D e­
D e­
cem­
cem­
cem­
cem­ ments
ments
1940
1940
1940
1940
ber
ber
ber
ber
1939
1939
1939
1939

Dollars

New England__
12,472
M aine. ________
839
New Hampshire..
627
Vermont. ____
475
M assachusetts... 2 7, 569
Rhode Island___
1,129
1,833
Connecticut____

905, 248
57,837
42,242
18,063

480,520
94, 835
211, 751

- 4 .0 21,876,697
- 1 . 5 1,230, 303
-2 .0
906,927
- 5 .4
405,418

-4 .7 11,592,294
- 6 .4
- 2 .4

2,114,235
5, 627, 520

Middle Atlantic___ 31,017 2,175,860
N ew York. ____ 18, 905 944,493
N ew Jersey___ _ 3. 574 362,893
Pennsylvania___
8,538 868,474

- 5 .5
- 6 .8
- 3 .7
- 4 .8

59, 498,197
26, 591,804
9, 684, 530
23,221,863

East North Central. _ 25, 259 2, 234,343
Ohio__________
7, 685 566, 409
Indiana.
_ . 2, 735 243, 622
Illinois________
5 6, 565 631, 828
Michigan_______ 4, 448 551,182
W isconsin............ « 3, m
241,402

-5 .5 6,405,462
- 4 .2 17,173,416

See footnotes at end of table.


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Federal Reserve Bank of St. Louis

Dollars

1,801

632,709
47,975
35,195
11, 398

286,502

- 1 .8 14,814,181 - 3 .3
-.3
988, 756
-.1
-.8
739, 844 -(>)
- 5 .8
251,002 -1 0 .3

393
679

76,130
175, 509

- 5 .4 1, 643,015
- 1 .3 4, 603,293

- 3 .9
- 1 .2
- 1 .2
- 7 .7

3,492
273
198
148

- 7 .0
- 3 .6

-3 .9

-2 .4
-6 .9
- 3 .9

- 4 .4 6, 820 1,344,439 - 2 .2 36, 219,770 - 4 .6
- 5 .7 3 2; 773 474, 020 -1 .9 IS, 139,493 -3 .5
- 5 .4
1,613 305,641 - 3 .1 8,115, 752 - 5 .5
- 2 .5 2,434 564,778 * -2 . 3 14,964,525 4 -5 .4

- 4 .8 63, 253,330
- 5 . 5 15,768,179

- 6 .3
- 8 .0

- 4 .2 17, 597, 563

1,044
2,375
- 5 .4
1,002
-6 .2 1 1.437

-4 -9 6,308,710

-1 .3 6,588,271

-8 .7
-4 .8

8,121 1, 690, 250
2.263 429, 625

- 2 .5 49, 068,662

- 5 .3

- 2 .2 12,334,561 -7 .3
196,945 * -4 -9 5,291,535 4 -8 .1
425,758 -2 .1 11.554,378 -4 .3
466,104 -2 .8 15,346,12i -3 .0
171,818 * -2 .0 4,542,064 4 - 5 .3

Trend of Employment and Pay Rolls

1009

T able 3.— Comparison of Employment and P ay Rolls in Identical Establishments in
December 1939 and January 1940, by Geographic Divisions and by States— C on tin u ed
[Figures in italics are not compiled by the Bureau of Labor Statistics, but are taken from reports issued by
cooperating State organizations]
Total—all groups

Geographic divi­
sion and State

Manufacturing

Per­
Per­
Per­
Per­
cent­ Amount cent­
cent­ Amount cent­
N um ­ N um ­
age
age
N
um
­
N
um
­
age
age
of
pay
of
pay
ber of ber on change
ber of ber on change
roll (1 change
roll (1 change
estab­ pay roll from
from estab­ pay roll from
from
week)
week)
lish­ January D e­
D e­
lish­ January D e­
D e­
ments
cem­ January cem­ ments
1940
1940
cem­ January cem­
1940
1940
ber
ber
ber
ber
1939
1939
1939
1939

West North Central- 12, 281
M innesota..
3 2, 586
Iowa. _ _ _____
1,906
M issouri.. _
3,111
North Dakota__
499
South Dakota___
481
Nebraska. . .
1,318
K ansas...
____ » 2 , 430

444,978

m , Ml

Dollars

- 5 .7 11,144,616

-

8 .0

3,384,462

64,858
162,512
4, 392
6,535
27, 709

- 3 .8 1, 605, 702
- 4 .4 3, 974,207
—7. C 109, 564
- 2 .0
153, 559
- 6 .9
638,976

South Atlantic_____ 10,031
Delaware_______
237
Maryland______
1,555
District of Co­
lumbia_____ _ 1,051
Virginia________
1,693
West Virginia___
1,189
North Carolina.. 1,440
South Carolina...
706
Georgia________
1,219
Florida_________
941

900,938
16,420

- 2 .7 18,086,444
- 3 .5
405, 536

East South Central..
K e n tu ck y _____
Tennessee______
Alabama_______
M ississippi__ _.

64, 771 « -

2 2 .4

-5 .7

-8 .7

- 3 .2
-4 .4
-2 .8
- 4 .5
- 4 .8

1,278,146 4 -5 .5
- 4 .6
- 5 .5

2,333

619
345
732
27
26
135

220,084

50,739

-2 .2

Dollars

5,468,639

449

38,48Ê
93,314
396
2,654
9,430

25,062

- 1 .6
981,210
- . 6 2,206; 592
- 2 .9
10,079
+ 2 .6
67,862
- 6 .2
243, 098

2,843

614, 766

- 1 .5 11, 568,198
-1 .3 ' 277, 399

78

- 4 .7

-4 -4 i, 332,278

-

2 .8

- 8 .3
- 3 .2
- 3 .3
- 3 .3
+2. 3
- 4 .3
- 4 .8

627,520

- 4 .0

-5 .0

640

11,453
-4 .0
109,832 4 -1 .3 2, 761,712 4 -3 .1

39, 959 -1 4 .0 1,089,467
120,066 - 4 .0 2,381,125
140, 324 - 3 .5 3, 574, 877
168,300 - 2 .9 2, 663, 585
86. 228
- . 3 1,305, 308
130, 232 + 4 .7 1, 997,075
48, 581 - 1 .8
875, 210

- 9 .6
- 3 .7
- 4 .1
- 4 .5
- 1 .4
- 4 .6
- 4 .5

39
430
195
659
249
370
183

3,173
85, 403
53. 311
153, 561
79,147
97,418
21,468

-2 .8
- 1 .2
- 3 .6
- 1 .2
+ .6
- 1 .4
- 9 .0

4,662
1,389
1,345
1,340
588

300,897
83,441
98,185
98,457
20,814

- 2 .6
+ 3 .0
- 5 .5
-3 .8
- 8 .4

978
276
341
269
92

191, 282
36,069
71,912
69,492
13,809

- 3 .0 3, 522,329
- 2 .6
795,636
- 3 .3 1,333, 384
- 2 . 0 1,202,832
- 7 . 9 ' 190, 477

- 4 .3
-2 .8
-4 .2
-4 . 3
- 9 .6

West South Central..
Arkansas______
Louisiana______
Oklahoma........... .
Texas__________

4,986
li 771
986
1,299

201, 387

- 5 .8

1,170

100,963

- 3 .9

2,178, 852

- 6 .4

- 8 .4
- 5 .1

220
135

573

536,866
254, 946

-4-1

28, 747 - 6 .6
10,520 - 5 . 9
45,320 ■ + ./

- 9 .9
- 8 .3

Mountain ...............
M ontana_____
Idaho.. _____
Wyoming______
Colorado_______
N ew Mexico.
Arizona___
U tah__________
N evada________

3, 926
581
476
323
1,149
276
413
553
155

119,615 - 7 .5 3,212, 291 - 4 .9
17, 164 - 8 .1
495, 298 - 7 .8
10,086 -1 5 .9
251,035 -1 5 .7
7, 729 - 6 .7
222,453 -2 .1
39,608 - 6 .3 1,050, 233 -2 .1
5,671 + (*)
125,812 + 1 .5
16.084 - 2 .6
469, 257 - 1 .3
20,926 -1 1 .0
528, 040 - 7 .1
2, 347 - 4 .5
70,163 - 5 .6

526
66
58
35
184
27
34
108
14

32,435
4, 320
2,464
1,068
14, 974
697
2, 693
5,967
252

-1 5 .7
-1 7 .6
-3 8 .5
-2 8 .0
- 9 .0
-.9
- 4 .8
-2 0 .0
-1 6 .8

831,784
116,932
56,115
3L 954
396,719
13; 381
65,684
140, 789
7,210

-1 5 .8
-1 8 .6
-4 1 .8
-2 4 .5
- 8 .1
-2 . 7
-5 . 1
-2 0 .8
-1 9 .1

2, 653
513
283

252, 859
52, 532
24,959

- 2 .8
-1 .7
- 8 .1

7, 082,345
li 45i; 476
622,425

- 4 .6
-. 1
-9 .8

1,930

Pacific_____ ______ 10,130
Washington____
2,449
Oregon________
1,118
California...
2 6,563

150, 838

-4-9 3, 794,261

- 4 .7
- 4 .5
-5 .7
- 2 .9
- 8 .8

- 5 .8 4,499,795

26, 251 -11.3
52, 989
36,391

85, 756

474, 616
87, 385
41, 896

345,335

5,843,071
1,853,967
1,832,753
1, 834, 504
321,847

- 7 .2
- 4 .9

440,944

1,054,193
903,265

-3 .3 2,101,393

- 5 .7 13, 567, 598
- 5 .8 2, 382, 609
- 7 . 5 1,064, 688
- , 5 10,120, SOI

-8 .3

- 5 .5
- 3 .7
- 7 .9

-5 .6

242

1,857

18,-376

175,368

-8 .4

109,186 - 5 . 6
1, 665, 874 - 2 . 3
1,35i; 754 - 8 . 5
2,413,858 - 4 .1
1,172,955
- .9
1, 476,070 - 4 . 5
339,390 -1 0 .9

301,371 -

1 0 .6

1,085,669 4 - 2 .5

- 2 .3 5, 0 0 8 ,4 4 4

-5 .1

1 Less than Ho of 1 percent.
2 Includes banks and trust companies; construction, municipal, agricultural, and office employment,
amusement and recreation; professional services; and trucking and handling.
3 Includes laundering and cleaning; and water, light, and power.
4 Weighted percentage change.
I Includes automobile and miscellaneous services; restaurants; and building and contracting.
6 Includes construction but not public works.
7 Does not include logging.
* Includes banks; real estate; pipe-line transportation; motor transportation (other than operation and
maintenance); water transportation; hospitals and clinics; and personal, business, mechanical repair, and
miscellaneous services.
9 Includes financial institutions, miscellaneous services, and restaurants.
10 Weighted percentage change, including hired farm labor.
II Includes automobile dealers and garages; and sand, gravel, and building stone.
12 Includes banks, insurance, and office employment.


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Federal Reserve Bank of St. Louis

1010

Monthly Labor Review—April 1940

INDUSTRIAL AND BUSINESS EMPLOYMENT IN PRINCIPAL METRO
POLITAN AREAS

A comparison of employment and pay rolls in December 1939 and
January 1940 is made in table 4 for 13 metropolitan areas, each of
which had a population of 100,000 or over in 1930. Cities within
these areas but having a population of 100,000 or over, are not in­
cluded. Footnotes to the table specify which cities are excluded.
Data concerning them have been prepared in a supplementary tabu­
lation which is available on request. The figures represent reports
from cooperating establishments and cover both full- and part-time
workers in the manufacturing and nonmanufacturing industries pre­
sented in table 1, with the exception of building construction, and
include also miscellaneous industries.
Revisions made in the figures after they have gone to press, chiefly
because of late reports by cooperating firms, are incorporated in the
supplementary tabulation mentioned above. This supplementary
tabulation covers these 13 metropolitan areas as well as other metro­
politan areas and cities having a population of 100,000 or more accord­
ing to the 1930 Census of Population.
T able 4.—Comparison of Employment and P ay Rolls in Identical Establishments in
December 1939 and January 1940 by Principal Metropolitan Areas

Metropolitan area

Amount of
pay roll
(1 week)
January
1940

Percentage
change
from
December
1939

13, 277
4,328
2,250
1, 609
2,922

616, 432
454,979
209,975
360, 209
164,150

- 7 .9
—4. 6
—5.0
- 3 .7
—6. 5

$17,026, 529
12, 830, 594
5, 758,680
12, 252, 084
4, 751, 572

-7.3
-5.3
-5.3
-3.6
-6.7

1,533
1, 331
1, 136
2,996
1,166

119, 285
123, 356
115, 769
183, 304
192, 810

- 7 .1
- 3 .7
-5 .7
-6 .2
—4. 5

3, 452, 502
3,121, 730
2,925, 352
4,669, 988
5,697, 723

- 8.6

1, 584
767
980

78, 238
72, 538
102,996

-6 .2
—4. 4
—4. 6

2, 326, 834
2, 036,937
2, 913, 704

-6.7
-6 .4
-5 .4

1 Does not include Elizabeth, Jersey City, Newark, or Paterson, N . J., or Yonkers, N . Y .
2 Does not include Gary, Ind.
3 Does not include Camden, N . J.
< Does not include Long Beach, Calif.
8 Does not include Cambridge, Lynn, or Somerville, Mass.
6Does not include Oakland, Calif.


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Percentage
change
from
December
1939

Number
on pay roll
January
1940

Number
of estab­
lishments
January
1940

-4.9
-5.6
-4.9
-7.2

Building Operations

SUMMARY OF BUILDING CONSTRUCTION IN
PRINCIPAL CITIES, FEBRUARY 1940 1
BUILDING-PERMIT valuations for all classes of construction were
20.7 percent higher in February than in January. Gains ranging from
6.i percent in cities with populations of 1,000 and under 2,500, to
49.5 percent in cities with populations of 50,000 and under 100,000
were reported in all city size groups. New residential construction
rose 26.3 percent from the preceding month and new nonresidential
construction showed an increase of 12.7 percent. Permit valuations
of additions, alterations, and repairs to existing structures were 16.8
percent higher than in January.
As compared with the corresponding month in 1939, the volume of
building construction in February, as measured by the value of permits
issued, showed a gain of 5.8 percent. The only increase of any im­
portance over the year period—16.1 percent—was in permit valuations
of new residential construction. New nonresidential construction was
0.2 percent higher in February 1940 while additions, alterations, and
repairs to existing structures fell 12.4 percent.
Comparison of February 1940 with January 1940
and February 1939
A summary of building construction in 2,123 identical cities in
February 1940, January 1940, and February 1939 is given in table 1.
T able

1 .—Summary of Building Construction for Which Permits Were Issued in

2,123 Identical Cities, February 1940
Number of buildings

Class of construction

Percentage
change from—
February
1940

Permit valuation
Percentage
change from—
February
1940

Janu­ Febru­
ary 1940 ary 1939

Febru­
Janu­
ary 1940 ary 1939

All construction__ ______ ____________

42,114

+19.9

+10.3

$140, 241,716

+20. 7

+ 5 .8

N ew residential______________________
N ew nonresidential_____ ___________
Additions, alterations, and repairs . . . _

13, 777
6,370
21,967

+31.2
+21.9
+13.3

+15.5
+12.0
+ 6 .8

79, 013,408
37, 546,471
23, 681, 837

+26. 3
+12.7
+16.8

+16.1
+ 0 .2
-1 2 .4

i More detailed information by geographic divisions and individual cities is given in a separate pamphlet
entitled “Building Construction, February 1940,” copies of which will be furnished upon request.


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Federal Reserve Bank of St. Louis

1011

Monthly Labor Review—April 1940

1012

A summary of permit valuations of housekeeping dwellings and the
number of families provided for in new dwellings in 2,123 identical
cities, having a population of 1,000 and over, is shown in table 2 for
February 1940 compared with January 1940 and February 1939.
T able 2.—Permit Valuation of Housekeeping Dwellings and Number of Families
Provided for in 2,123 Identical Cities, February 1940
Permit valuation of house­
keeping dwellings
Percentage
change from—

Type of dwelling
February
1940

January Febru­
1940
ary 1939

Number of families provided
for in new dwellings
Percentage
change from—
February
1940

January Febru­
1940
ary 1939

All types____________________________

$78, 593, 508

+27.3

+16.3

22,472

+30.9

+18.7

1- family______________ . _ . ________
2- family i___________________________
M ultifamily 2________ ______________

47,803, 786
2,767,249
28,022,473

+29.9
+28.4
+22.9

+13.4
-1 5 .2
+26.5

12,316
1,175
8,981

+29.5
+26.8
+33.3

+12.0
+ 4.0
+31.9

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

Construction During First 2 Months, 1939 and 1940
Cumulative totals for the first 2 months of 1940 compared with
the same months of the preceding year are shown in table 3. The
data are based on reports received from cities having a population of
1.000 and over.
T able 3.—Permit Valuation of Building Construction in Reporting Cities of 1,000
Population and Over, First 2 Months, 1939 and 1940

Class of construction

Permit valuation of building
construction, first 2 months
of—
1940

Percentage
change

1939

$254,923,751

$291, 423, 257

-1 2 .5

141,271, 951
69, 960,362
43, 691, 438

139,683,714
99, 454, 796
52, 284, 747

+ 1.1
-2 9 .7
-1 6 .4

Table 4 presents the permit valuation of housekeeping dwellings
and number of family-dwelling units provided in cities with a popula­
tion of 1,000 and over for the first 2 months of 1939 and 1940.


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Building Operations

1013

T able 4.—Permit Valuation of Housekeeping Dwellings and Number of Family-Dwelling
Units, First 2 Months, 1939 and 1940, by Type of Dwelling
Permit valuation of house­
Number of family­
d w e l l i n g units,
keeping dwellings, first Percent­
first 2 months of— Percent­
2 months of—
age
age
change
change
1940
1939
1940
1939

Type of dwelling

2-family 1_________ _____ _______

$140, 090, 451

$138, 089,129

+ 1 .4

39, 540

39,095

+ 1 .1

84,371,841
4,884,257
50,834,353

86,817,727
6, 073,185
45,198, 217

-2 .8
-1 9 .6
+12. 5

21,749
2,081
15,710

22,755
2,243
14,097

- 4 .4
-7 .2
+11.4

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

Analysis by Size of City , February 1940
Table 5 shows the value of permits issued for building construc­
tion in February 1940 compared with January 1940 and February
1939, by size of city and by class of construction.
T able 5.—Permit Valuation of Building Construction in 2,123 Identical Cities, by
Size of City, February 1940
Total construction

Size of city

Total, all reporting cities____
500,000 and over___
. _ —
100,000 and under 500,000____
50,000 and under 100,000_____
25,000 and under 50,000.
10,000 and under 25,000___ .
5,000 and under 10,000 . .
2,500 and under 5,000----------1,000 and under 2,500. — ____

Number
of
cities

New residential buildings

Percentage change
Percentage change
Permit val­
from—
from—
Permit val­
uation,
uation,
February
February
January February
January February
1940
1940
1940
1939
1940
1939

2,123

$140, 241,716

+20.7

14
79
94
168
438
377
465
488

53,555,709
33, 635, 572
12,978,463
11, 594, 647
14,663, 562
8,149,191
3, 710,382
1,954,190

+14.0
+15.0
+49.5
+29.4
+22.2
+57.3
+13.2
+ 6 .1

N ew nonresidential
buildings

+ 5 .8 $79,013, 408
+11.7
+13.3
- 0 .1
- 9 .3
-1 2 .2
+23.8
-9 .2
+10.3

30,035,352
17,934,086
7,139,823
5, 770,285
9, 245,982
5,336, 717
2, 232, 221
1,318,942

+26.3

+16.1

+19.2
+18.5
+56.7
+37.0
+36.8
+52.1
+ 2 .9
+30.4

-6 .0
+47.4
+21.9
+23.5
+32.2
+45.5
+28.2
+29.0

Additions, alterations, and
repairs

Percentage change
Percentage change Population
(census of
Permit val­
from—
Permit val­
from—
1930)
uation,
uation,
February
February
January February
January February
1940
1940
1940
1939
1940
1939
Total, all reporting cities.

$37, 546, 471

+12.7

500.000 and over________
100.000 and under 500,00050.000 and under 100,000—
25.000 and under 50,000- —
10.000 and under 25,000—
5.000 and under 10,000__
2,500 and under 5,000____
1.000 and under 2,500........

13,821,749
10,578, 773
3,828, 722
3,199, 577
2, 754, 208
1,922,804
995,807
444, 831

+ 3 .0
+ 6.1
+93.2
+18.1
-1 4 .9
+127. 3
+75.4
-2 5 .4


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Federal Reserve Bank of St. Louis

+ 0 .2 $23,681, 837
+101.4
- 2 .6
-9 .6
-4 4 .2
-5 0 .2
- 6 .7
-3 6 .9
-2 5 .8

9, 698, 608
5,122, 713
2,009,918
2, 624,785
2, 663,372
889,670
482,354
190,417

+16 8

-1 2 .4

60,493,165

+16.2
+23.7
- 6 .3
+28.9
+32.5
+ 7 .7
-1 0 .8
-1 8 .9

+ 4 .6
-2 3 .3
-3 0 .7
+10.5
-3 6 .4
+ 4 .2
-3 6 .9
+27.1

21,449,853
15,017,880
6,283,873
5,903,783
6,744,738
2, 654, 470
1, 661, 290
777, 278

Monthly Labor Review—April 1940

1014

The permit valuation of housekeeping dwellings in the 2,123 iden­
tical cities reporting for January and February 1940, together with
the number of family-dwelling units provided in new dwellings, by
size of city, is given in table 6.
T a b l e 6 . —Permit

Valuation of Housekeeping Dwellings and Number of Families
Provided for in 2,123 Identical Cities, by Size of City, January and February 1940
Permit valuation of house­
keeping dwellings

Number of families provided for
in—All types
M ulti­
l-family
2-family
dwellings dwellings 1 dwfamily
ellings2

Size of city
February
1940

January
1940

Per­
centage
change Feb­ Jan­ Feb­ Jan­ Feb­ •Jan­
ru­ uary
ruary uary ruary uary ary
1940 1940 1940 1940 1940 1940

Feb­ Jan­
ru­
ary uary
1940 1940

Total, all reporting cities. _ $78,593, 508 $61,756,130

+27.3 22,472 17,172 12,316 9, 509 1,175

927 8,981 6,736

500,000 and over _______ 29,835, 652 25,168, 966
100,000 and under 500,000.. 17,934,086 14, 944, 339
50,000 and under 100,000... 7,125, 623 4,142,827
25,000 and under 50,000... 5, 770, 285 4,129, 443
10,000 and under 25,000... 9, 095,982 6, 743,415
5,000 and under 10,000___
5, 303,917 3, 507,007
2,500 and under 5,000 ___ 2, 215, 521 2,159, 045
1,000 and under 2,500___
1,312,442
961, 088

+18.5
+20.0
+72.0
+39.7
+34.9
+51.2
+ 2 .6
+36.6

298 4,119 4,008
248 2,448 2,056
140 917 154
101 603 167
60 592 189
34 276
59
23
97
18
23
8
6

7, 886
5,397
2,148
1, 948
2,589
1,497
643
364

6,614
4,365
1,198
1,373
1,756
956
638
272

3, 369 2, 308
2,696 2,061
1,119 904
1,177 1,105
1,887 1, 507
1,156 863
582 518
330 243

398
253
112
168
110
65
43
26

1 Includes 1- and 2-family dwellings with stores.

2 Includes multifamily dwellings with stores.

The information on building permits issued is based on reports
received by the Bureau of Labor Statistics from 2,123 identical cities
having a population of 1,000 and over.
The information is collected by the Bureau of Labor Statistics from
local building officials, except in the States of Illinois, Massachusetts,
New Jersey, and Pennsylvania, where the State departments of labor
collect and forward the information to the Bureau. In New York
and North Carolina the information from the smaller cities is col­
lected by the Bureau of Labor Statistics from local building officials
and the information from the larger cities is collected and forwarded
to the Bureau by the State departments of labor. The permit valua­
tions shown in this report are estimates made by prospective builders
on applying for permits to build. No land costs are included. Only
building projects within the corporate limits of the cities enumerated
are included in the Bureau’s tabulation. The data collected by the
Bureau of Labor Statistics show, in addition to private and municipal
construction, the value of buildings for which contracts were awarded
by the Federal and State Governments in the cities included in the
report. For February 1940 the value of these buildings amounted
to $23,254,000, for January 1940 to $16,208,000, and for February
1939 to $17,434,000.


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Federal Reserve Bank of St. Louis

1015

Building Operations

Construction from Public Funds
The value of contracts awarded and force-account work started
during February 1940, January 1940, and February 1939 on con­
struction projects financed wholly or partially from various Federal
funds is shown in table 7.
T able 7.— Value of Contracts Awarded and Force-Account Work Started on Projects
Financed from Federal Funds, January and February 1940 and February 1939 1
Contracts awarded and forced-account work
started—
Federal agency
February 1940
T otal----------- --------- -----------------------------------------------Public Works Administration:
Non-Federal:
N . I. R. A
_________________________
________ - ___________________
E. R. A. A
P. W. A. A., 1938___________________________
Federal projects under The Works Program---------- -Regular Federal appropriations_____________ _________
U . S. Housing A uthority. ---------------------- ----------------

January 1940 2 February 19392

$60,429,000

$73,652,850

$144,223,318

104,020

2,760,806

5,012,908

106,101
379,871
5,848,959
150, 000
41,410, 708
12,429,341

458,408
1,647, 262
11,650,819
117,863
51,202,153
5,815,539

768,566
3,757,950
54,264,236
6,562,600
72,602,133
1,254,925

1 Preliminary, subject to revision.
2 Revised.

The value of public-building and highway construction awards
financed wholly from appropriations from State funds, as reported by
the various State governments for February 1940, January 1940, and
February 1939 is shown in the following statement:
Public
buildings

February 1940_________
January 1940__________
February 1939_________


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Federal Reserve Bank of St. Louis

Highway
construction

$2, 994, 915 $7, 877, 956
4, 443, 880 4, 297, 257
917, 464
1, 6 8 6 , 685

Retail Prices

SUMMARY OF FOOD AND COAL PRICES
FOOD costs were 1.3 percent higher for February than for January
1940. Higher prices were reported for 26 of the 61 foods for which the
Bureau collects retail prices. The indexes for dairy products, eggs,
fruits and vegetables, and cereals and bakery products moved upward.
Average prices of coal advanced between September and December
1939. Bituminous prices averaged 2.7 percent higher and increases
for Pennsylvania anthracite ranged from 0.7 percent for buckwheat to
2.7 percent for stove.

FOOD
Prices in February 1940
THE average retail cost of food for 51 cities combined increased 1.3
percent between January and February. Contraseasonal advances
for eggs, fresh fruits and vegetables, and dairy products were the
predominant factors causing the increase. In addition costs of flour
and white bread continued to advance.
The February index was 78.1 percent of the 1923-25 average as
compared with 77.1 for January and 76.8 for February of last year.
The increase was widespread as higher costs were reported for 48 of the
51 cities and lower costs for 3.
DETAILS BY COMMODITY GROUPS

The cost of cereals and bakery products increased 0.6 percent
between January and February as a result of higher prices for flour,
white bread, and soda crackers. Flour prices continued upward for
the 4th consecutive month and were 0.7 percent above the prices for
January. The average cost of white bread which advanced 2.5 per­
cent in January, the first change in 6 months, increased again in
February by 1.2 percent. Higher prices were reported for 14 cities
with Little Rock showing the greatest change, an increase of approxi1016


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Federal Reserve Bank of St. Louis

Retail Prices

1017

mately 2 cents per pound. Soda crackers rose 0.6 percent, corn meal
declined 2.2 percent, and all other items in the group remained
unchanged.
Meat costs declined for the fifth consecutive month with lower prices
reported for all items in the group except veal cutlets, roasting chick­
ens, and canned salmon. Pork products dropped 2.7 percent to the
lowest level of any period since early in 1935. Beef items declined
1.2 percent and lamb, 1.1 percent. Prices of veal cutlets advanced
0.5 percent; roasting chickens, 1.8 percent; and pink salmon, 1.3 percent.
The index for dairy products advanced 0.7 percent as the result of
increases of 0.8 percent for butter and fresh milk and 0.4 percent for
cheese. These increases were contrary to the usual seasonal move­
ment. Butter prices were higher in 33 cities, lower in 16, and for 2
cities there was no change reported.
Egg prices, which usually drop in February, rose sharply by 9.4
percent with 49 cities reporting increases. The average price was
17.0 percent higher than a year ago, 15.2 percent higher than in
February 1938, but 5.2 percent lower than in February 1936.
The cost of fresh fruits and vegetables advanced 6.0 percent as a
result of increased prices for all items in the group except bananas.
Green beans and spinach prices were higher in February than in any
other period since the spring of 1935. Onion and cabbage prices
advanced about 16.0 percent while smaller increases noted for other
items were oranges, 8.4 percent; sweetpotatoes, 5.1 percent; apples,
4.5 percent; and potatoes, carrots, and lettuce, approximately 4
percent. Banana prices declined 1.6 percent.
Canned fruit and vegetable costs were slightly lower with tomatoes,
peas, and pineapple showing decreases of 1.2 percent, 0.7 percent, and
0.5 percent, respectively. Increases of 1.0 percent or less were shown
for peaches and corn.
The index for dried fruits and vegetables was 0.3 percent higher
than in January, due to an increase of 1.1 percent for prunes. Prices
for navy beans remained the same.
The cost of fats and oils was 1.6 percent less than in January and
was 5.3 percent lower than a year ago. Lard prices dropped 3.0 per­
cent for the month to the lowest level since February 1934. Shorten­
ing in tin containers and shortening in cartons showed declines in
prices of 1.5 percent and 0.8 percent, respectively. Oleomargarine
dropped 1.3 percent. Prices for salad dressing increased 1.9 percent
and prices for peanut butter 0.6 percent.
Sugar prices, which went down for the fifth successive month, were
1.3 percent lower than for the preceding month and 4.7 percent higher
than for a year ago.


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Federal Reserve Bank of St. Louis

1018

Monthly Labor Review—April 1940

RETAIL COST OF FOOD
1923-25 = 100
INDEX

U S BUREAU OF LABOR STATISTICS


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Federal Reserve Bank of St. Louis

INDEX

1019

Retail Prices

Indexes of retail costs for February and January 1940 and Febru­
ary 1939, 1933, and 1929 are shown in table 1. The accompanying
chart shows the trend in the cost of all foods and of each major com­
modity group for the period from January 1929 through February
1940.
Average prices of each of 61 foods for 51 cities combined are shown
in table 2 for February and January 1940 and February 1939.
T able 1.— Indexes of Retail Food Costs in 51 Large Cities Combined,1 b y Commodity

Groups, February and January 1940 and February 1939, 1933, and 1929
[1923-25 = 100]
1940
Commqdity group
Feb. 13 J

Meats

_______________________ _____________

Fats and oils_____________ _____ _____________ . . .

1939
Feb. 14

1933
Feb. 15

1929
Feb. 15

Jan. 16

78.1

77.1

76.8

60.1

102.3

88.7
87.8
82.7
68.7
62.9
61.5
75.0
63.6
65.3
60.7
64.6

88.2
88.7
82.1
62.8
59.8
58.0
75.4
63.4
65.4
61.7
65.5

85.6
93.4
77.1
58.7
61.0
60.0
74.1
56.9
66.2
64.1
62.0

69.2
63.9
60.7
45.3
52.1
51.3
65.5
48.0
69.5
45.2
57.1

98.2
116.7
105.7
101.0
88.7
86.9
96.6
100.2
110.8
93.7
75.4

1
Aggregate costs of 84 foods in each city prior to September 1939, and of 53 foods since that date, weighted
to represent total purchases, have been combined for the United States with the use of population weights,
1 Preliminary.

T able 2.— Average Retail Prices of 61 Foods in 51 Large Cities Combined,1February and

January 1940 and February 1939
1939

1940
Article

Cereals and bakery products:
Cereals:
Flour, wheat_____ _______________ __________ 10 pounds..
Macaroni________________________ _____________ pound..
Wheat cereal3_____
. . . . ____ _____ 28-oz. package..
Corn flakes___________ ________ _____ 8-oz. package .
____________ pound..
Corn meal____ ________________
Rice 3_____________________ _____ ______________do___
Rolled oats 3______________________ _______________do___
Bakery products:
Bread, w h ite ... . ------------------------ _ _ _____ ___do_. _
Bread, whole-wheat_______________ _ _ _________ do___
Bread, rye______ _______________ ___ ____ ____do___
__ __ ___ ____do___
Meats:
Beef:
_ ________ do__ _
______
Round steak ______ .
Rib roast_______________ _______ ........ ..................... do___
Chuck roast___ ___ ____________
_____ _____ do _ _
Veal: Cutlets________________________
Pork:
Chops___________________________
Bacon, sliced____________ _______
_do___
Ham, sliced______________ ______ _ _ _______
_ do___
Ham, whole--------------------------------- _ ______
Salt pork________________________ ________ _____ _do____
Lamb:
Leg_______________ ____ _________ ___ ______ __do__ _
Rib chops-----------------------------------Poultry: Roasting chickens____________ ______________ do___
Fish:
Salmon, p in k .._____ _____________
Salmon, red 3..........................................
See footn otes a t end o f table.


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Federal Reserve Bank of St. Louis

Feb. 13 3

J a n .16

Feb. 14

Cents

Cents

Cents

45.1
14.4
23.7
7.0
4.5
7.9
7.1

44.8
14.4
23.7
7.0
4.6
7.9
7.1

36.5
14.4
24.4
7.3
4.6
7.6
7.1

8.2
9.4
9.5
15.5

8.1
9.4
9.5
15.4

8.0
9.2
9.3
15.3

33.9
28.1
22.1
42.4

34.2
28.5
22.5
42.2

35.7
30.1
23.7
43.7

23.1
27.7
42.8
24.2
14.6

24.2
28.2
43.3
24.4
15.4

29.4
44.5
47.0
28.1
19.2

25.6
32.6
27.7

25.8
33.0
27.2

27.9
34.9
30.8

15.2
25.3

15.0
25.3

12.5
23.3

1020

Monthly Labor Review—April 1940

T able 2.—Average Retail Prices of 61 Foods in 51 Large Cities Combined, February and
January 1940 and February 1939— C on tin u ed
1939

1940
Article

Dairy products:
Butter_______________________________ ___________ P o u n d ..
________________________ _____________ do____
Cheese____
M ilk, fresh (delivered)_________________ _____________ quart .
M ilk, fresh (store)_____________________ _____________ do____
M ilk, fresh (delivered and store)3..
M ilk, evaporated______________________ . . . . . . _14)6-oz. can..
Eggs-------------------------------------------------------- ____________ dozen..
Fruits and vegetables:
Fresh:
Apples_______ ______ ____ . . . . ____________ pound..
___ _
__do ___
Bananas. ____________ __________
Oranges___ ___________
_______ . . . . . . . . . _.dozen ..
_______ pound..
Beans, green_____________ _______
Cabbage
. _ . _______ ___ . . . ______________do ___
Carrots___________ _______________ _____ _____bunch..
Lettuce------------------- -- --------- ______ ______ head.
O nions.. . . . ._
. . . __________ . . . _______ ____ pound.
Potatoes________________ ________ . . . . . . ..15 pounds..
S p in a ch ________________________ . . . ________ pound..
Sweetpotatoes___________ ______ ___ _____________ do___
Canned:
Peaches___________ _______________ _______ No. 2H can ..
______________ do___
P in eap p le...
. . . . . ________
Beans, green 3____________ _______ _. ______ No. 2 can..
Corn 4 ________ _____________ ____ _____________ do___
_______do _ _
Peas ______
. . . _______
. . . . ___
Tomatoes______________________ . ______________do___
Dried:
Prunes. _ _________________ ______ ____ ______pound .
N avy beans________________ ______ ______________ do___
Beverages and chocolate:
Coffee___ ___ ______ ____
_______ ______________do_ _
_________ H pound..
T ea__________ _ _ _______________
Cocoa 3______________________ ______ . _ ______8-oz. can..
Fats and oils:
Lard____
____________ ____________ ____ _ . _ ..pound ..
Shortening, other than lard:
In ca rto n s... . . . ________ ______ . . ______________ do___
In other containers____ __________ .
______pint.
Oleomargarine _______ .
______ _____ _____ pound..
Peanut butter__________ _______ ______ ______________ do___
Sugar and sweets:
10 pounds..
Sugar. . . ______________ . . . . . . . _____
Corn sirup 3___________________ ~ ---- _________ 24-oz. can..
Molasses 3 ___________________________ _________18-oz. ca n ..

Feb. 13

Jan. 16

Feb. 14

Cents

Cents

Cents

37.9
25.9
13.1
11.9
12.7
7.1
34.9

37.6
25.8
13.0
11.7
12.6
7.1
31.9

33.0
25.0
12.5
11.5
12.2
6.9
29.9

4.6
6.3
25.7
20.0
4.4
5.5
7.9
3.7
39.0
10.2
4.1

4.4
6.4
23.7
12.4
3.8
5.3
7.6
3.2
37.6
7.5
3.9

5.3
6.3
23.6
12.3
3.4
5.6
8.1
4.0
35.4
6.8
4.1

17.0
21.2
10.0
10.6
13.9
8.5

16.9
21.3
10.0
10.5
14.0
8.6

16.9
21.3
10.6
10.9
13.9
8.6

9.6
6.7

9.5
6.7

9.1
5.9

22.0
17.6
9.0

22.0
17.6
9.0

22.8
17.6
8.5

9.7

10.0

11.2

12.0
19.6
21.4
15.7
17.9

12.1
19.9
21.0
15.9
17.8

12.7
20.5

53.3
13.5
13.5

54.0
13.5
13.4

51.2
13.8
13.6

16.6
18.1

1 Since September 1939 supermarket prices have been substituted for those of certain service stores.
2 Preliminary.
2 N ot included in index.
4 Since April 1939 prices of canned corn have been based upon quotations of cream style only and are not
strictly comparable with prices for earlier months, which included both cream style and whole-kernel corn.
3 Effective January 1940 salad dressing replaced mayonnaise in the food-cost index. Earlier prices are not
available.

D E T A IL S

BY

R E G IO N S

AND

C IT IE S

The average increase of 1.3 percent in the costs of food between
January and February resulted from higher costs in 48 cities and lower
costs in 3 cities. The greatest increases were shown for Boston, 2.9
percent, and Butte, 2.6 percent. Dairy products advanced 5.1 percent
in Boston due, for the most part, to increases of 7.9 percent for delivered
milk and 9.0 percent for milk sold in stores. Meat prices in Butte
advanced 4.2 percent for the month, the largest increase reported for


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Federal Reserve Bank of St. Louis

Retail Prices

1021

this group. Nine other cities reported advances of 2.0 percent or
more.
The three cities showing declines for the month were Dallas, 0.8
percent; Mobile, 0.7 percent; and Kansas City, 0.4 percent. Sharp
reductions in meat prices were largely responsible for lower food costs
in these cities. Meat prices were 5.1 percent lower in Dallas, 6.6
percent lower in Mobile, and 7.9 percent lower in Kanas City.
Indexes of food costs by cities are presented in table 3 for February
and January 1940 and February 1939.
T able 3.

Indexes of Retail Food Costs, by Cities,1 February and January 1940 and
February 1939
[1923-25 = 100]
1940

1940

Region and city
Feb.
13 2
United S tates... ..
New England:
Boston_______
Bridgeport______
Fall R iv e r...
Manchester___
New H a v e n ..
Portland, Maine„
Providence.
Middle Atlantic:
Buffalo____ ____
Newark___ ___
New Y ork..
Philadelphia___
Pittsburgh_____
Rochester____
Scranton_______
East North Central:
Chicago______ . . .
Cincinnati____ . . .
Cleveland________
Columbus, Ohio____
D etroit__________
Indianapolis—. . ..
M ilwaukee________
Peoria_____ ____
Springfield, 111_____
West North Central:
Kansas C ity_______
Minneapolis_______
O m aha.. _________

78.1

Jan.
16
77.1

1939
Feb. 14

Region and city
Feb.
13 2

76.8

74.8
81.1
79.1
81.0
79.7
77.3
76.1

72.7
80.2
78.1
79.1
78.1
75.7
74.7

73.4
79.0
77.9
78.5
77.6
76.0
73.1

78.4
82.1
82.1
77.3
75.2
78. 6
75.4

77.2
81.5
81.6
76.6
74.2
77.0
75.0

77.1
79.7
79.8
77.8
72.9
77.4
73.6

79.4
77.5
79.2
76.9
75.2
78.3
79.0
79.0
76.3

78.1
76.7
78.7
75.3
73.4
76.8
78.8
77.9
74.9

77.2
75.9
79.2
76.4
75.9
76.6
80.2
77.9
75.9

77.3
85.7
76.7

77.6
84.5
76.0

78.1
83.5
73.9

St. Louis_______
St. P a u l________
South Atlantic:
Atlanta________
Baltimore______
Charleston, S. C_
Jacksonville____
N o r fo lk ........... .
Richmond______
Savannah______
Washington, D . (
East South Central:
Birmingham____
Louisville......... .
M em phis_______
M obile_________
West South Central:
D allas__________
Houston________
L ittle Rock_____
N ew Orleans____
Mountain:
B utte___________
D enver_________
Salt Lake C ity__
Pacific:
Los A ngeles..........
Portland, O reg...
San Francisco___
Seattlel_________

Jan.
16

1939
Feb. 14

.

83.8
80.4

82.4
79.5

82.2
79.2

72.2
81.7
79.4
76.9
76.0
71.2
78.8
78.5

2 70.9
80.3
78.3
76.6
74.7
69.8
77.9
77.9

70.9
82.5
76.2
73.6
73.7
69.9
74.9
79.2

67.6
81.9
74.7
72.5

66.7
81.0
73.9
2 73.0

65.4
81.1
72.8
73.0

71.1
78.5
73.9
84.4

71.7
77.9
72.1
83.7

68.6
75.4
72.0
82.1

76.3
80.8
76.2

74.4
80.1
76.0

73.7
81.4
74.8

70.9
79.0
80.6
80.1

70.1
3 78.2
80.1
78.9

71.6
79.4
80.5
78.1

tn
? s,ts of f00(3'!in eai h city Prior to September 1939, and of 53 foods since that date, weighted
t0jrpreffminaryal purchases’ have been combmed for the United States with the use of population weights.
3 Revised.

COAL
RETAIL prices of coal are collected quarterly as of the 15th of March,
June, September, and December from 51 cities. Brief reports were
published for the first three quarters of 1939. This report includes a
resume of prices for quarterly periods for 1938 and 1939.


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Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

1022

Prices in December 1939
Retail prices in December showed general advances over September
for all kinds of coal. An increase of 2.7 percent for bituminous coal
brought the average price to the level of December 1938. Prices for
Pennsylvania anthracite showed increases ranging from 0.7 percent
for buckwheat to 2.7 percent for stove for the 3-month period. They
were, however, lower than in December 1938 with decreases for the
year ranging from 1.0 percent for buckwheat to 5.7 percent for
chestnut. The average price of Arkansas anthracite advanced 3.4
percent between September and December, but was 2.9 percent lower
than in December 1938. No change was shown for Colorado anthra­
cite during the year. New Mexico anthracite, which remained un­
changed during the first three quarters, advanced 0.7 percent between
September and December.
Average prices of coal, together with indexes for bituminous coal
and for Pennsylvania anthracite compared with the 3-year peiiod,
October 1922 through September 1925 as 100, are presented in table
4 for December and September 1939 and December 1938.
T

a b l e

4.—Average Retail Prices of Coal in Large Cities Combined, December and
September 1939 and December 1938
Average
retail price
per ton of 2,000
pounds

Index of retail price
(October 1922-September 1925=100)

Percentage
change,
Dec. 15, 1939
compared
with—

Kind of coal
1938

1939

1938

1939

1939

1938

Dec. 15' Sept. 15 Dec. 15 Dec. 15' Sept. 15 Dec. 15 Sept. 15 Dec. 15
Bituminous coal

(38 cities), old

Pennsylvania anthracite (25 cities),
new series:3

Western anthracite:

$8.68

$8.45

$8.68

89.2

86.9

89.3

+ 2 .7

0

10.84
10.83
8. 84
7 67

10.56
10.64
4 8.64
7.62

11.37
11.49
9.10
7.75

77.0
77.1

75.1
75.7

80.8
81.8

+ 2 .7
+ 1 .8
+ 2.3
+ .7

-4 .7
- 5 .7
- 2 .9
- 1 .0

12.50
15.81

12 09
15.81
23.69

12.87
15.81
23.69

+ 3 .4
0
+ .7

- 2 .9
0
+■7

1 Preliminary.
.
.
,.
2 Unweighted average. Weighted composite prices are in preparation.
.
. .
.n
.u
s Weighted on the basis of the distribution by rail or rail and tidewater to each city during the 12-mo
period from Aug. 1, 1935 to July 31,1936.
4 Revised.

Prices 1929 Through 1939
Retail prices of coal were generally lower in 1939 than in 1938.
The annual average price of bituminous coal was 1.1 percent lower
than in 1938 and 0.8 percent lower than in 1937. It was, however,
above the level of prices for the 7 preceding years, 1931-36, inclusive.
Decreases for Pennsylvania anthracite in 1939 compared with 1938
amounted to 1.5 percent for stove and 2.4 percent for chestnut.

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Federal Reserve Bank of St. Louis

1023

Retail Prices

Annual average prices were the lowest recorded since 1918. Decreases
over 1929 were 23.7 percent for stove and 21.0 percent for chestnut.
Average prices and indexes for bituminous coal and for stove and
chestnut sizes of Pennsylvania anthracite are shown in table 5 by
years for 1929 through 1939 and by quarterly periods for 1938 and
1939.
T able 5.— Average Retail Coal Prices and Indexes fo r Large Cities Combined, 1929 to
1939, Inclusive
Average price per ton of 2,000 pounds

Date

Bituminous
(unweighted
average, 38
cities)

Index (October 1922-September
1925=100)

Pennsylvania anthracite
Pennsylvania anthracite
(weighted average, 25
(weighted average, 25 Bituminous
cities)
(unweighted
cities)
average, 38
cities)
Chestnut
Stove
Chestnut
Stove

1929__________________
1930__________________
1931__________________
1932__________________
1933__________________

$8.85
8. 83
8.33
7. 71
7.65

$14.14
14.03
13.68
12. 55
12.12

$13. 70
13.66
13. 65
12.45
11.93

91.5
91.3
86.2
79.7
79.1

100.5
99.7
97.1
89.2
86.2

97.7
97.3
97.3
88.7
85.0

1934 _________________
1935__________________
1936__________________
1937............... — .........— .

8.26
8.29
8. 42
8.58

12.18
11.38
11.74
11.05

11.92
11.14
11.60
11.19

85.4
85.7
87.1
88.4

86.6
80.9
83.5
78.5

85.0
79.4
82.7
79.6

1938__________________
1939 1_________________
1938:
March._ . _____
June......... ...............
September________
December 1----------1939:
M arch.. . ________
J u n e _____________
September________
December 1-----------

8.61
8.52

10.96
10. 79

11.11
10.84

88.7
87.7

77.9
76.7

79.1
77.2

8.83
8.38
8.54
8.68

11.15
10. 52
10.80
11.37

11.31
10.63
11.02
11.49

91.0
86.4
88.0
89.3

79.3
74.8
76.7
80.8

80.5
75.7
78.4
81.8

8.68
8.28
8.45
8.68

11.28
10.47
10. 56
10.84

11.35
10. 55
10.64
10.83

89.4
85.2
86.9
89.2

80.2
74.4
75.1
77.0

80.8
75.1
75.7
77.1

> Preliminary.

Details by Cities and Kinds of Coal, 1938 and 1939
Bituminous coal.—Prices of one or more kinds of bituminous coal
are collected from 47 of the 51 cities. Prices of low-volatile coal from
28 cities and of eastern high-volatile coal from 27 cities are secured
from the Atlantic and Central areas. Seventeen of these cities report
on both kinds. Western high-volatile coal is represented by prices
from 20 cities in the Central and Pacific areas. Nine of these cities
do not report for other kinds of bituminous coal.
Prices tended upward between September and December in most
of the cities. Most of the increases ranged from a few cents to 50
cents per ton although in a few instances greater advances were
reported for one or more sizes.
The greatest advances for low-volatile coal amounted to about 70
cents for the larger sizes in Chicago and about $1 in Washington.
Chicago reported an advance of $1 per ton for eastern high-volatile
217593— 40------- 16


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Federal Reserve Bank of St. Louis

1024

Monthly Labor Review—April 1940

lump as did Jacksonville and New Orleans. This coal is, however,
relatively unimportant in the two southern cities. Chicago a so
reported the greatest price advance for western high-volatile coal
with increases for various sizes ranging upward to 55 cents per ton.
In Seattle an increase of about 40 cents per ton was shown for stoker
coal, with lesser increases for larger sizes.
Average prices of bituminous coal by kinds and sizes for quarterly
periods of 1938 and 1939, for 47 cities, are given in the Retail Price
pamphlet for February 1940.
Anthracite.—Prices of one or more kinds of anthracite are collected
from 33 of the 51 cities. Twenty-five of these cities report on Penn­
sylvania anthracite and 10 on western anthracite.
Prices of Pennsylvania anthracite advanced between September and
December in most of the reporting cities of the North Central and the
Middle and South Atlantic areas, and remained unchanged, with the
exception of New Haven, in the New England cities. In a majority
of the cities the increases were less than 50 cents per ton. Those
reporting advances of 50 cents or more for prices of one or more sizes
were New Haven, Rochester, Norfolk, Washington, and Chicago.
The greatest increases occurred in Norfolk where pea coal was $1.50
per ton higher in December than in September, and in Chicago where
increases for pea, chestnut, and stove ranged between $1 and $1.35
per ton.
. ,
Prices of Arkansas anthracite advanced during the 3-month period
in six of the eight reporting cities, four of which reported increases of
50 cents or more per ton. In New Orleans the increase was about 75
cents per ton. Prices of Colorado anthracite in Denver have shown
no change during 1938 and 1939. New Mexico anthracite m San
Francisco advanced slightly between December and September 1939,
showing the only price change for the 2-year period.
Average retail prices for quarterly periods of 1938 and 1939, for
various sizes of Pennsylvania anthracite in 25 cities and for west­
ern anthracite in 10 cities, ere given in the Retail Price pamphlet for
February 1940, copies of which will be furnished upon request.


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Federal Reserve Bank of St. Louis

Wholesale Prices

WHOLESALE PRICES IN FEBRUARY 19401
DURING February the Bureau of Labor Statistics index of wholesale
commodity prices dropped 0.9 percent to 78.7 percent of the 1926
average, the lowest point reached since the outbreak of the war in
Europe. Sharp decreases in prices of farm products, foods, hides
and leather products, and textile products were mainly responsible
for the decline, although all groups, except chemicals and drugs and
housefurnishing goods, were below the January level.
The textile products group registered the greatest decline during the
month, 3.2 percent. Hides and leather products declined 1.2 per­
cent; foods, 0.8 percent; farm products, 0.6 percent; metals and metal
products and miscellaneous commodities, 0.5 percent; fuel and light­
ing materials, 0.4 percent; and building materials, 0.2 percent. Housefurnishing goods advanced 0.3 percent and chemicals and drugs re­
mained unchanged at the January level. Most groups were substan­
tially above their year-ago levels. The increases ranged from 1 per­
cent for metals and metal products to 14 percent for textile products.
Foods and fuel and lighting materials were slightly below their Feb­
ruary 1939 levels.
Wholesale prices of raw materials fell 1.5 percent, largely because of
weakening prices for imported commodities such as bananas, cocoa
beans, copra, raw silk, hemp, jute, and crude rubber. The semi­
manufactured commodities group index declined 2.2 percent and fin­
ished products dropped 0.4 percent.
Average wholesale prices of nonagricultural commodities and indus­
trial commodities declined nearly 1 precent. These groups, accord­
ing to the indexes for “All commodities other than farm products”
and “All commodities other than farm products and foods,” were 2.4
and 3.7 percent, respectively, higher than a year ago.
Decreases of 2.4 percent for livestock and poultry and 1.0 percent
for grains caused the farm products group index to fall 0.6 percent to
the September 1939 level. Lower prices were reported for barley,
corn, oats, wheat, rye, calves, cows, hogs, cotton, lemons, milk (Chicago), peanuts, flaxseed, tobacco, potatoes, and wool. Quotations
were higher for steers, ewes, live poultry, eggs, apples, oranges, hay,
1 More detailed information on wholesale prices is given in the Wholesale Price pamphlet and will be
furnished upon request.


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Federal Reserve Bank of St. Louis

1025

1026

Monthly Labor Review—April 1940

hops, alfalfa and timothy seed, and onions. The farm products group
index, 68.7, was 2.2 percent above a year ago. Compared with a
year ago, grains showed an increase of over 33 percent while livestock
and poultry dropped more than 17 percent.
Wholesale prices of foods decreased 0.8 percent to the lowest level
reached since August. Dairy products, fruits and vegetables, and
meats declined more than 2 percent, while cereal products rose over
2 percent. Among the important food items for which lower prices
were reported were butter, cheese, milk, flour, cornmeal, oatmeal,
corn flakes, canned fruits and vegetables, dried fruits, bananas, fresh
beef, bacon, fresh and cured pork, veal, cocoa beans, copra, peanut
butter, pepper, granulated sugar, edible tallow, and coconut oil.
Prices averaged higher for bread (New York), crackers, lamb, mut­
ton, ham, dressed poultry, canned salmon, glucose, lard, oleo oil, and
most vegetable oils.
The hides and leather products group index fell 1.2 percent as a
result of sharp decreases in prices for hides, skins, and leather. Aver­
age wholesale prices of shoes advanced fractionally while prices of
other leather manufactures were steady.
Marked declines in prices of raw silk and silk rayons, together with
lower prices for cotton goods, silk hosiery, woolen and worsted goods,
burlap, hemp, jute, and twine, resulted in a drop of 3.2 percent in the
textile products group index. Minor price advances were reported in
prices for clothing.
The decline of 0.4 percent in the fuel and lighting materials group
was caused by a marked decline in prices of crude petroleum from the
California fields and weakening prices for gasoline and coke. Prices
were higher for coal, fuel oil, and kerosene.
Pronounced decreases in prices of nonferrous metals, such as copper,
lead, tin, and zinc (including manufactured items of lead, copper, and
brass), and lower prices for scrap steel, reinforcing bars, and heating
equipment, resulted in the index for the metals and metal products
group declining 0.5 percent during February. Higher prices were re­
ported for galvanized pipe, quicksilver, and plumbing fixtures.
Falling prices for tile, Douglas fir and gum lumber, lath, shingles,
and paint materials caused the building materials group index to drop 0.2
percent. Quotations were higher for yellow pine flooring and timbers,
Ponderosa pine, poplar and spruce lumber, rosin, turpentine, and gravel.
In the chemicals and drugs group, lower prices for fats, oils, camphor,
epsom salts, and fertilizer materials were counterbalanced by higher
prices of tartaric acid, cream of tartar, and mixed fertilizers and the
group index remained unchanged at 78.1 percent of the 1926 average.
The only group increase during February was 0.3 percent for house­
furnishing goods. Higher prices for stoves, tablecloths, and mattresses
accounted for the advance.

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Federal Reserve Bank of St. Louis

Wholesale Prices

1 027

In the miscellaneous commodities group, crude rubber declined 2.3
percent and paper and pulp decreased 0.3 percent. Prices were lower
also for soap, cylinder oils, and paraffin wax. Wholesale prices of
cattle feed rose 0.8 percent.
Index numbers for the groups and subgroups of commodities for
January and February 1940 and February 1939 and the percentage
changes from February 1939 and January 1940 to February 1940 are
shown in table 1.
1 .— Index Numbers of Wholesale Prices, January and February 1940 and
February 1939, and Percent of Change from January 1940 and February 1939 to
February 1940

T able

[1926 = 100]

Group and subgroup

February January
1940
1940

Change
from a
month
ago

February
1939

Percent

Change
from a
year
ago

Percent

All commodities_________________________________

78.7

79.4

- 0 .9

76.9

Farm products-------------- -------------------------------Grains.-. ---- -------- _ . ------- ---------Livestock and poultry.
..
------Other farm products_________________________

68.7
72.8
65.6
68.9

69.1
73.5
67.2
68.6

-.6
- 1 .0
- 2 .4
+ .4

67.2
54.7
79.2
62.9

+ 2.2
+33.1
-1 7 .2
+ 9 .5

Foods----------------------------------------------------------------Dairy products_______________
______ Cereal products_______________________ _____
. - -- - . . . Fruits and vegetables.,........... .
M ea ts..--------------- - - - - - - - - - - Other foods------------------------ ------------------ ------

71. 1
80.0
82.4
58.7
68.4
66.3

71.7
81.9
80.4
60.3
69.9
65.8

-.8
- 2 .3
+ 2 .5
-2 .7
- 2 .1
+ .8

71.5
71.6
72.7
62.1
83.2
61.7

-.6
+11.7
+13.3
- 5 .5
-1 7 .8
+ 7 .5

Hides and leather products---------- ------ ----------------Shoes--------------- ------------------ --------------------Hides and skins______
- - - - - ------ -- ---------Leather. ________
..
- --------------------Other leather products_______________________

102.4
108.2
97.0
94.2
100.0

103.6
107.8
102.6
96.0
100.0

-1 .2
+ .4
- 5 .5
- 1 .9
0

.91.9
101.1
72.8
84.2
95.3

+ 11.4
+ 7 .0
+33.2
+11.9
+ 4 .9

Textile products-------------------------------------------------C lo th in g ... ----------- --------_ --------Cotton goods___________ _____ _____ ______
Hosiery and underwear . . _____ .
-- -R a y o n 3. . . . . - _______ __________________
Silk 3_______________________ ________________
Woolen and worsted goods____ . _______ ____ _
Other textile products___
___ . . . . ------

75.4
84.9
73.6
64. 5
29.5
51.6
87.2
76.8

77.9
84.5
75.4
68.4
29.5
61.8
90.4
81.3

-3 .2
+ .5
- 2 .4
- 5 .7
0
-1 6 . 5
- 3 .5
- 5 .5

66.1
81.5
63.7
58.8
28.5
36.8
74.7
64.5

+14. 1
+ 4 .2
+15.5
+ 9 .7
+ 3 .5
+40.2
+16. 7
+19.1

Fuel and lighting materials____
. . ------- -- -----Anthracite____ _____
— ..
Bituminous coal____________ . . . . ---------------Coke_____________ . . ________ _______ ___

72.4
79.2
98.2
109.7
(i)
(i)
50.9

72.7
78.7
98.0
109.8
(0
78.6
51.7

-.4
+ .6
+ .2
- .1

- .8
-.9
+ •1
+ 5 .3

- 1 .5

73.0
79.9
98.1
104.2
82.8
81.8
50.7

Metals and metal products___________________ ____
Agricultural implements___ . — _______ _____
Farm machinery_______________ _ ______
Iron and steel.................................
. ------Motor vehicles 2--_ . . _____________________
------- —
Nonferrous metals - _______ . . .
Plumbing and heating________ . . . __________

95.3
93.4
94.6
96.3
94.7
79.2
79.1

95.8
93.4
94.6
96.3
94.7
82.6
79.3

-.5
0
0
0
0
-4 .1
-.3

94.3
93.2
94. 5
96.1
93.4
76.5
79.2

+ 1.1
+ .2
+ .1
+ .2
+ 1 .4
+ 3 .5
-. 1

Building materials______________________ . . . . .
Brick and tile........ .................
______
C em ent.. .
___— . . . __________ . . .
Lum ber.. ________ .
. _. ------ -- ------ -- . . .
Paint and paint materials_____
.. .. - . ...
Plumbing and heating_________ . . . . . . .
Structural ste el... _ .. ______ _____ _______
Other building materials_____________________

93.2
91.2
91.4
97.6
86.8
79.1
107.3
92.9

93.4
91.6
91.4
97.6
87.2
79.3
107.3
93.2

-.2
-.4
0
0
- .5
- .3
0
-.3

89. 6
92.4
91.2
92.6
80.5
79.2
107.3
89.3

+ 4 .0
- 1 .3
+ .2
+ 5 .4
+ 7 .8
-. 1
0
+ 4 .0

Chemicals and d r u g s___________________ _______
Chemicals____- - . . . _______________ _____
Drugs and pharmaceuticals___ - - . ----------Fertilizer materials-. . _________
________
Mixed fertilizers-------- ---------------------------- -----See fo o tn o tes a t end o f table.

78. 1
81.0
76.8
72.9
73.7

0
+ .1
+ .4
-1 .5
+ .3

76.3
79.4
72.7
69.3
73.7

+ 2 .4
+ 2 .0
+ 5 .6
2
0

Petroleum products__________________________


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78.1
80.9
76.5
74.0
73.5 1

+ 2.3

+ .4

Monthly Lahor Review—April 1940

1028

T able 1.— Index Numbers o f Wholesale P rices, Jan u ary and February 1940 and
February 1939, and Percent o f Change from Jan u ary 1940 and February 1939 to
February 1940 —Continued
[1926 = 100]

February January
1940
1940

Group and subgroup

Housefurnishing goods_______ ____________________
Furnishings_____________________ . . . ________
Furniture_______
______ ________ - - __

88.2
94.2
81.9

87.9
94.0
81.4

M iscellaneous__
_
______________________
Automobile tires and tubes _ _
__ _ _
___
Cattle feed_______ __ _ _________ _______ _
Paper and pulp. _ _
__ _ _ _ _ _ _ _ _ _ _
Rubber, crude_____ __ _ ________ ___ _ ___
Other miscellaneous.
_ _________ - - - - - ___

77.3
55.6
93.7
89.5
38.7
86.6

Raw materials_________ _____________ ___________
Semimanufactured articles _ _ _________________
Finished products_________________ _________ ___
All commodities other than farm products____
All commodities other than farm products and foods.

72.7
79.9
81.4
80.8
83.2

1 Data not yet available.

Change
from a
month
ago

February
1939

Change
from a
year
ago

Percent

Percent
+ 0 .3
+ .2
+ .6

85.2
89.8
80.5

+ 3.5
+ 4 .9
+ 1 .7

77.7
55.6
93.0
89.8
39.6
87.4

-.5
0
+ .8
- .3
- 2 .3
-.9

73.5
59. 7
78.2
81.1
33.7
81.2

+ 5 .2
- 6 .9
+19.8
+10.4
+14.8
+ 6 .7

73.8
81.7
81.7
81.5
83.9

-1 .5
-2 .2
-.4
-.9
' -.8

70.9
74.4
80.2
78.9
80.2

+ 2 .5
+ 7 .4
+ 1.5
+ 2 .4
+ 3 .7

2 Preliminary revision.

3 N ew series.

Index Numbers by Commodity Groups, 1926 to February 1940
Index numbers of wholesale prices by commodity groups for selected
years from 1926 to 1939, inclusive, and by months from February
1939 to February 1940, inclusive, are shown in table 2.
T able 2.— Index Numbers of Wholesale Prices, by Groups of Commodities
[1926=100]

Year and month

Hides
Metals Build­ Chem­ HouseAll
Farm
and Textile Fuel
and
furM is­ com­
ing
and metal
icals nishprod­ Foods leather prod­ light­
cella­ modi­
mate­
and
ucts
prod­ ucts
prod­ rials drugs
neous ties
ing
ing
ucts
ucts
goods

B y years:
1926____________ 100.0
1929____________ 104.9
1932____________
48.2
1933____________
51.4
80.9
1936____________
86.4
1937____________
1938____________
68.5
1939____________
65.3
B y months:
1939:
February____ 67.2
March_ _ 65.8
April_______
63.7
May_ _____
63.7
62.4
July------------August_____
September - _.
October_____
November __
December. __
1940:
January_____
February____

100.0
99.9
61.0
60.5
82.1
85.5
73.6
70.4

100.0
109.1
72.9
80.9
95.4
104.6
92.8
95.6

100.0
90.4
54.9
64.8
71.5
76.3
66.7
69.7

100.0
83.0
70.3
66.3
76.2
77.6
76.5
73.1

100.0
100.5
80.2
79.8
87.0
95.7
95.7
94.4

100.0
95.4
71.4
77.0
86.7
95.2
90.3
90.5

100.0
94.2
73.5
72.6
80.4
83.9
77.6
76.5

100.0
94.3
75.1
75.8
81.7
89.7
86.8
86.3

100.0
82.6
64.4
62.5
70.5
77.8
73.3
74.8

100.0
95.3
64.8
65.9
80.8
86.3
78.6
77.1

71.5
70.2
68.6
68.2
67.6

91.9
91.8
90.9
91.6
92.3

66.1
66.6
66.9
67.5
67.3

73.0
73.1
73.4
73.9
73.0

94.3
94.3
94.0
93.5
93. 2

89.6
89.8
89.6
89.5
89.5

76.3
76.5
76.0
75.9
75.7

85.2
85.2
85.4
85.5
85.6

73.5
74.1
74.4
74.2
73.8

76.9
76.7
76.2
76.2
75.6

62.6
61.0
68.7
67.1
67.3
67.6

67.5
67.2
75.1
73.3
72.3
71.9

92.5
92.7
98.5
104.6
104.0
103.7

67.6
67.8
71.7
75.5
76.4
78.0

72.8
72.6
72.8
73.9
74.1
72.8

93.2
93.2
94.8
95.8
96.0
96.0

89.7
89.6
90.9
92.8
93.0
93.0

75.0
74.6
77.3
78.1
78.0
78.1

85.6
85.6
86.6
87.8
88.4
88.5

73.4
73.3
76.6
77.6
77.0
77.4

75.4
75.0
79.1
79.4
79.2
79.2

69.1
68.7

71.7
71.1

103. 6
102.4

77.9
75.4

72.7
72.4

95.8
95.3

93.4
93.2

78.1
78.1

87.9
88.2

77.7
77.3

79.4
78.7

The price trend for specified years and months since 1926 is shown
in table 3 for the following groups of commodities: Raw materials,
semimanufactured articles, finished products, commodities other than

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1029

Wholesale Prices

farm products, and commodities other than farm products and foods.
The list of commodities included under the classifications “Raw
materials,” “Semimanufactured articles,” and “Finished products”
was given in the December and Year 1939 issue of the Wholesale
Price pamphlet.
T able 3.—Index Numbers of Wholesale Prices, by Special Groups of Commodities
[1926 = 100]

All
com­
Semimod­
Fin­ ities
Raw manufac- ished other
Year and month mate­ tured
prod­
rials arti­
than
ucts farm
cles
prod­
ucts

B y years:
1926__________
1929__________
1932__________
1933__________
1936__________
1937__________
1938........ ............
1939__________
B y months:
1939:
February___
March____ _
April...... .........

All
commodties
other
than
farm
prod­
ucts
and
foods

100.0 100.0 100.0 100.0 100.0
97.5
55.1
56.5
79.9
84.8
72.0
70.2

93.9
59.3
65.4
75.9
85.3
75.4
77.0

94.5
70.3
70.5
82.0
87.2
82.2
80.4

93.3
68.3
69.0
80.7

80.6
79.5

91 6
70.2
71.2
79.6
85.3
81.7
81.3

70.9
70.1
68.5

74.4
74.6
74.4

80.2
80.2
80.1

78.9
79.0
78.8

80.2
80.4
80.5

86.2

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

Year and month

All
com­
SemiFin­ mod­
Raw manities
ufac- ished other
mate­ tured
prod­
rials arti­ ucts than
farm
cles
prod­
ucts

B y months—Con.
1939—Con.
M ay___ June________
July------------August______
September__
October____
November___
December___
1940:
January_____
February___

68.9
67.7
67.8
66.5
72.6
72.3
72.4
73.3

74.3
74.1
74.4
74.5
81.8
83.1
82.1
82.0

79.9
79.6
79.2
79.1
81.9
82.3
82.0
81.7

78.8
78.4
78.1
77.9
81.3
82.0
81.6
81.6

80.6
80.2
80.2
80.1
82.1
83.8
84.0
83.9

73.8
72.7

81.7
79.9

81.7
81.4

81.5
80.8

83.9
83.2

Weekly Fluctuations
Weekly fluctuations in the major commodity group classifications
during January and February are shown by the index numbers in
table 4.
T able 4.— Weekly Index Numbers of Wholesale Prices by Commodity Groups, January
and February 1940
[1926 = 100]
Feb.
17,
1940

Feb.
,
1940

10

Feb.
3,
1940

Jan.
27,
1940

Jan.
,
1940

20

Jan.
13,
1940

78.3

78.5

78.8

79.1

79.3

79.5

79.5

68.9 69.6 69.2 69.5 69.5
69.4
Farm products______________ _______ _______
Foods__________________________________________ 71.0 70.5 70.9 71.7 71.4 71.4 71.8
Hides and leather produ cts_____________ _______ 102.7 103.1 103.2 103.0 103.9 103.7 104.1
Textile products.._ - . .
_
_____
_________ 74.2 74.4 75.3 75.3 76.7 77.0 78.1
Fuel and lighting materials_______________________ 73.0 73.0 73.0 73.3 73.4 73.4 73.3

69.6
71.8
104.0
78.3
73.3

Commodity group

Feb.
24,
1940

All commodities_________________________________

78.6

68.6

Jan.
,
1940

6

Metals and metal products______
_____________
Building m aterials______________________________
Chemicals and drugs____________________________
Housefurnishing goods___ _______________ ______
Miscellaneous___________________________________

95.3
93.0
77.7
89.5
77.2

95.3
93.2
77.5
89.6
77.2

95.5
93.1
77.3
89.5
77.1

95.6
93.1
77.5
89.5
77.1

95.7
93.7
77.6
90.2
77.4

96.0
93.1
77.7
90.2
77.5

96.0
93.2
77.8
90.1
77.7

96.0
92.9
78.0
90.1
77.5

Raw materials__________________ .
____ _
Semimanufactured articles_______________________
Finished products..
__ _____________________
All commodities other than farm products.-......... _..
All commodities other than farm products and foods.

72.9
79.6
81.5
80.6
83.3

72.4
79.6
81.4
80.5
83.3

72.7
80.1
81.4
80.6
83.5

73.2
80.3
81.7
80.9
83.6

73.3
81.2
81.9
81.3
84.0

73.9
81.9
81.9
81.4
84.1

74.2
81.9
82.1
81.7
84.3

74.1
81.9
82.1
81.7
84.2


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Recent Publications o f Labor Interest

M A R C H 1940

Cooperative Movement
The A B C’s of consumers’ cooperation, with special regard to growth of movement on
eastern seaboard. Brooklyn, Eastern Cooperative League, 1939. 5 pp.
Cooperative action in rural life. Survey prepared by Cooperation Service of Inter­

national Labor Office. Geneva, League of Nations, 1939. 42 pp. (European
Conference on Rural Life, 1939, Monograph 9.)
Cooperative dairying. By Valery J. Tereshtenko and others. New York City,
Work Projects Administration, 1940. 212 pp.; mimeographed. (Studies of
the cooperative project, series C, part I.)
Contains a brief history of the development of cooperative dairying, notes and
statistics showing relative development of this phase of cooperation in certain
countries, and general summary statistics showing cooperative dairying in relation
to other types of cooperatives throughout the world. The main section of the
report is bibliographical, giving abstracts of a vast amount of literature on the
subject of cooperative dairies.
Status of teacher credit unions. Washington, National Education Association of
the United States, Committee on Credit Unions, 1939. 45 pp.
Jewish cooperative societies in Czechoslovakia from 1 9 2 to 1937. (In Jewish
Social Service Quarterly, New York, December 1939, pp. 209-213.1
Brief description of the Jewish cooperative movement—mainly credit associa­
tions—in Czechoslovakia, with statistics, by years, of membership, capital,
deposits, and loans.
Sobre los pósitos agrícolas. By Jesús Rubio Coloma. (In El Trimestre Económ­
ico, Fondo de Cultura Económica, México, D. F., January-M arch 1940,
pp. 598-612).
Account of the antecedents, history, and operation of the Spanish agricultural
cooperatives, which date from the thirteenth century, with a statement of the
results of their extension to Italy and Portugal.
Kooperativ verksamhet i Sverige, dr 1938. Stockholm, Socialstyrelsen, 1939.
55 pp.
Statistics of operation for 1938, of various types of cooperatives in Sweden,
both consumers’ cooperatives and workers’ productives. Printed in Swedish
with résumé in French and French translation of table of contents.

Cosí, Standards, and Planes of Living
Family income and expenditure in New York City, 1935-36: Vol. I I , Family
expenditure. By A. D. H. Kaplan, Faith M. Williams, Alice C. Hanson.

Washington, U. S. Bureau of Labor Statistics, 1939. 232 pp., charts.
(Bulletin No. 643, Vol. II; Study of consumer purchases, urban series.)
Money disbursements of wage earners and clerical workers in five cities in Pacific
Region, 193^-36. By Faith M. Williams and Alice C. Hanson. Washing­

ton, U. S. Bureau of Labor Statistics, 1939.
639.)
1030


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358 pp., charts. (Bulletin No.

Recent Publications of Labor Interest

1031

Report of M inim um Wage Division, Industrial Commission of Utah, on cost-ofliving survey and wage studies. Salt Lake City, 1939. 80 pp.; mimeo­

graphed.
Data on earnings and hours of working women in Utah, taken from this report,
were published in the March 1940 Monthly Labor Review.
Résultats de l’enquête organisée en Lithuanie durant les années 1986-1937, sur les
budgets de 297 familles ouvrières, d’employés et de fonctionnaires. Kaunas,

Centralinis Statistikos Biuras, 1939. 135 pp., pasters, charts.
Results of an investigation of the budgets of 297 families of wage earners,
salaried employees, and officials in Lithuania in 1936-37. Data are included on
wages, salaries, and other income, and on expenditures for food, rent, fuel, cloth­
ing, and sundries.
Printed in Lithuanian with French and German translations of the table of
contents.

Economic and Social Problems
By
Carl Snyder. New York, Macmillan Co., 1940. 473 pp., charts.
The statistical portions of the volume, extensively charted, are presented as
evidence in support of the author’s well-known views already published in numer­
ous articles. The argument is in sharp contrast to the views of those economists
and historians who have emphasized the declining role of investment in capital
goods as a source of employment, the decline being attributed to such influences
as the slower rate of growth of new countries and of population and the rapid
progress of capital-saving techniques. His conception of wages, an illustration of
his views, is summarized by the statement that the average wage in any country
at any time is determined by definite measurable factors, and “neither the capi­
talist nor the employer, the wage earner or the labor union, sentiment or law, has
anything to do with fixing this wage.”
Towards democracy: The class struggle and its place in national unity. By Karl
Walter. London, P. S. King & Son, Ltd., 1939. 120 pp.
A brief historical review of the labor movement in England. The writer
states that the “labor strength” cannot be measured in terms of trade-unionism,
and he includes in chapter 11 a comparative analysis of unionism, cooperation,
and the Labor Party as integral parts of the labor movement. In a final chapter
on “The way and the goal,” the labor movement is described as having retained
its revolutionary goal of a radical alteration of society but as having abandoned
revolutionary methods.
Economics of socialism. By H. D. Dickinson. London, Oxford University Press,
1939. '262 pp.
The author is not so idealistic as to anticipate the elimination by socialism of
scarcity with its problems of price policy, but he combats by means of modern
economic experience and theory the view expressed by certain opponents of
socialism th at a socialistic society could not deal successfully with price problems.
He analyzes other outstanding phases of economic life in the light of his con­
ception of socialism, which involves basically the attainment of economic equality
and economic freedom.
The geographic basis of American economic life. By Harold Hull McCarty.
New York, Harper & Bros., 1940. xxiii, 702 pp., charts, maps, illus.
Designed as a text for use in schools but serviceable for general reference.
The main areas of the country are treated separately but there is some effort
to indicate the regional interrelations of economic life.
Capitalism the creator: The economic foundations of modern industrial society.

Trade barriers among the States: The proceedings of the National Conference on
Interstate Trade Barriers, Chicago, III., A pril 5-7, 1989. Chicago, Council

of State Governments, 1939. 127 pp., bibliography.
The conference was sponsored by the Council of State Governments, made up
of the commissions on interstate cooperation which have been established by
legislative action in 41 States. The conference adopted resolutions vigorously
opposing interstate trade barriers, some of the reasons assigned being the effects
of such barriers in placing additional burdens on consumers, in retarding the
forces promoting national prosperity, and in lowering standards of living.


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1032

Monthly Labor Review—A pril 1940

By Kenyon E. Poole. Cambridge, Mass.,
Harvard University Press, 1939. 276 pp., bibliography. (Harvard economic
studies, Vol. LXVI.)
In the preface, dated August 1939, the author expresses the hope that this
study of recovery policies in Germany will throw light on the mechanisms in­
volved in achieving full employment through State spending. Particular sub­
jects discussed include the public-works program, taxation, and the effects of the
public-works policies on industry, particularly construction. The author con­
cludes th at the recovery achieved by the policies described in the volume was
obviously unhealthy because of the vast diversion of resources into uneconomic
channels as symbolized by the phrase “guns before butter.”
German financial policies, 1932-1939.

Employment and Unemployment
Wash­
ington, U. S. Bureau of Labor Statistics, 1940. 8 pp., chart. (Serial No.
R. 1057, reprint from December 1939 Monthly Labor Review.)
Overhead man-hours in P. W. A. construction. By John A. Ball and Bernard H.
Topkis. Washington, U. S. Bureau of Labor Statistics, 1940. 8 pp.
(Serial No. R. 1025, reprint from February 1940 Monthly Labor Review.)
Additional workers and the volume of unemployment in the depression. By W. S.
Woytinsky. Washington, Social Science Research Council, Committee on
Social Security, 1940. 37 pp., charts. (Pamphlet series, No. 1.)
A summary of the principal findings of the third part of the author’s report to
the Committee on Social Security of the Social Science Research Council, on the
mobility of labor and unemployment. The author analyzes the labor supply as
composed of workers who regularly engage in gainful pursuits and of other
“additional workers” who temporarily seek gainful employment. It is stated
that during a depression the number of persons seeking jobs tends to outrun the
number th at have lost their jobs, and th at with progressing recovery the reem­
ployment of usual gainful workers is likely to cause some of the “additional
workers” to withdraw from the labor market. Unemployment is divided into
two main types—unemployment of usual gainful workers, and secondary unem­
ployment. The analysis has significance in relation to estimates of unemploy­
ment and also in relation to social insurance and relief policies. •
Third annual occupational outlook survey. Indianapolis, Indiana State Employ­
ment Service, 1939. 20 pp.; mimeographed.
Reports on job opportunities for 1939 high-school and college graduates.
Annual review of employment situation in Canada during 1939. Ottawa, Dominion
Bureau of Statistics, 1940. 55, ix pp., charts; mimeographed.
Includes estimates of unemployment among wage earners in the Dominion, by
years, 1927 to 1939, inclusive, and by months from January to November 1939.
Revised statistics of employment and unemployment in Queensland. Brisbane,
Bureau of Industry, 1939. 23 pp.; mimeographed.
Contains a description of the technique used in arriving at the figures on
employment and unemployment.
Employment and production in manufacturing industries, 1919 to 1936.

Income
Family income and expenditure in five New England cities, 1935-36: Volume I,
Family income. By A. D. H. Kaplan, Faith M. Williams, Dorothy McCam-

man. Washington, U. S. Bureau of Labor Statistics, 1939. 351 pp., charts.
(Bulletin No. 645, Volume I, Study of consumer purchases, urban series.)
Family income and expenditure in Southeastern Region, 1935-36: Volume I, Family
income. By A. D. H. Kaplan and Faith M. Williams. Washington, U. S.

Bureau of Labor Statistics, 1939. 520 pp., map, charts.
Study of consumer purchases, urban series.)

(Bull. No. 647,

By Barkev S.
Sanders. (In Social Security Bulletin, U. S. Social Security Board, Wash­
ington, December 1939, pp. 29-36.)
Income of urban families and individuals in single-family households. By Barkey
S. Sanders and Anne G. Kantor. (In Social Security Bulletin, U. S. Social
Security Board, Washington, September 1939, pp. 25-36.)
Gainful workers and income in urban single-family households.


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Recent Publications of Labor Interest
Measures of purchasing power.

By Wayne H. Stackhouse.

1033

Bloomington, Ind

business
N o y i | , Ch001 ° f BuSineSS' 1939' 83
^
« “ diana
The author’s point of view in measuring purchasing power is primarily market
analysis of particular localities for mercantile use. He compares three measures
•
hasmg power, namely, an index based on average earnings of employed
individuals and percent of population, an index showing the percentage of the
Indiana population getting salary and wage income of $ 1 ,0 0 0 or more as reported
to the Indiana Gross Income Tax Division, and an index showing the percentage
of the population filing Federal income-tax returns.
°
National and regional measures of income. By Simon Kuznets. (In Southern
Economic Journal, Chapel Hill, N. C., January 1940, pp. 291-313.)
A general discussion of income studies and of the desirability of more extensive
cooperatlon in the development and use of both regional and national income
statistics on the ground th at such information is basic to any understanding of
economic problems, both regional and national.
s
Studies in income and wealth Volume I I I . By Conference on Research in
National Income and Wealth New York, National Bureau of Economic
Research, Inc., 1939. xxm, 479 pp., charts.
The first two volumes of this series dealt with problems centering about the
meaning and measurement of the Nation’s total wealth and income. The third
volume contains papers and discussions, by various students in this general field
on the division of the national totals of income and of wealth into significant
constituent elements. Three papers deal with the division of the totals into
groups by size of income or by amount of wealth owned. The fourth paper dis­
tinguishes between income saved and income used to purchase goods and serv­
ices currently consumed. Another paper reviews studies of the allocations of income by the kinds of goods and services th at make up the total income stream,
tetill another paper discusses income by States as distinguished from the total
national income.

Industrial Accidents and Accident Prevention
Arsberetninger fra Arbeidsrddet og Arbeidstilsynet, 1938.

Oslo, [1939?]. 139 pp.,
diagrams, illus.
Annual report on activities of the Labor Council and labor inspectors in Norway m 1938, including information on pertinent legislation and industrial accident
statistics by industries and occupations, locality, and severity.
Printed in Norwegian with résumé in French and French translations of chap­
ter and table heads.
F
Olycksfall i arbete dren 1929-1933.

Stockholm, Riksfôrsâkringsanstalten, 1939.
142 pp.
, f ne ™ ed summary of industrial injuries in Sweden during the 5 -year period 1929
to 1933. Analysis and tabulations cover the number and cost of injuries.
Printed m Swedish, with table of contents, résumé, industry classification, and
accident-cause classification also in French.
Olycksfall i arbete dr 1936. Stockholm, Riksfôrsâkringsanstalten, 1939 56 pp
Analysis of industrial injuries in Sweden in 1936, with tabulations showing
number and cost of injuries, including occupational diseases, by industry; age and
sex of worker; cause, duration, location, and severity of injury; and time loss.
Printed in Swedish, with table of contents, summary, industry classification,
and cause classification also m French.
Yrkesinspektionens verksamhet dr 1938. Stockholm, Riksfôrsâkringsanstalten,
1939. 143 pp., diagrams, illus.
•
r®POft on activities of the labor inspection administration in Sweden
in 1938, including information on pertinent legislation; safety devices and meas­
ures for protection against industrial accidents and diseases; and ventilation,
lighting, and temperature of workplaces.
Printed in Swedish with French translation of table of contents.
Central mine rescue stations. By J. J. Forbes and others. Washington, U S
Bureau of Mines, 1939. 55 pp., map, diagrams, illus. (Miners’ circular 3 9 .)


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Federal Reserve Bank of St. Louis

Monthly Labor Review—A pril 1940

1034

By J. J. Forbes and C. W.
Owings. Washington, U. S. Bureau of Mines, 1939. 3 7 pp., diagrams, illus.
(Miners’ circular 40.)

Som e inform ation on tim bering bitum inous-coal m ines.

Industrial Hygiene
A n n u a l report of Surgeon General of U. S . P u blic H ealth Service, for fiscal year 1939.

Washington, 1939. 185 pp.
. .
T , , . ,n
A section of the report covering the work of the Division of Industrial Hygiene
gives a summary of the field investigations and laboratory research carried out
during the vear, and services to State and local health departments.
The course of disablin g m orbidity among in d u stria l workers, 19 2 1 -1 9 3 8
By Wil­
liam M. Gafafer, U. S. Public Health Service. (In Industrial Medicine,
Chicago, 111., February 1940, pp. 55-61; charts.)
E valu ation of in d u stria l hygiene problem s of Illin o is. Chicago, Illinois Department
of Public Health, 1939. 258 pp.
.
a
.
,
,.
This survey of health problems in the. industries of Illinois covered working
conditions and materials used in a large number of industries.
Pneum oconiosis (silico sis): The story of d u sty lungs. A preliminary report, by
Lewis Gregory Cole, M. D., and William Gregory Cole, M. D. New York,
John B. Pierce Foundation, 1940. Various paging, illus.
T em perature and h u m idity in various workshops of the textile in d u stry in J a p a n .

By Sinzi Katuki, M. D., and Hirosi Sukegawa, M. D., Tokyo, Japan Insti­
tute for Science of Labor, Inc., 1939. 23 pp., charts. (Report No. 42.)
Covers the atmospheric conditions in various processes m textile mills and
the relation of fatigue among the operatives to the temperature of workrooms.

Industrial Relations and Labor Conditions
By Leon M. Despres. (In University
of Chicago Law Review, Chicago, 111., December 1939, pp. 24—57.)
A discussion of the legality of closed or union shop agreements, as illustrated
by numerous court decisions.
In d u stry com m ittees under F air Labor S tan dards A ct. By Harold November. (In
American Federationist, American Federation of Labor, Washington, March
1940, pp. 271-280.)
A
„ . , .
...
Describes the role played by union representatives on the industry committees.
The collective agreement fo r the un ion shop.

Report of N ew Y ork State J o in t Legislative Com mittee on In d u stria l and Labor R ela­
tions. Albany, 1940. 77 pp. (Legislative document, 1940, No. 57.)

Although the committee’s report recommends a few minor changes in JNew
York laws controlling industrial and labor relations, it proposes nothing which is
drastic or extreme. Its final conclusion was th at “the most satisfactory &ud
happiest human relationships are the product not of legal compulsion, but rather
of voluntary determination among human beings to cooperate with one another.
Report of sixth ann ual m id-w est conference on in d u stria l relations, November 3 ,1 9 3 9 ,
at U n iversity of Chicago, conducted by In d u stria l R elations A ssociation of
Chicago and School of B usiness, U n iversity of Chicago. Chicago, Industrial

Relations Association of Chicago, [1940?]. 63 pp.; mimeographed.
By John R. Steelman and Henry G.
Baker Jr (In Transactions of American Institute of Chemical Engineers,
Vol. 35, No. 3, New York, 1939, pp. 323-332; also reprinted.)
Labor in sh ip ya rd s in the U nited States. By Clement F. Burnap
Hanover,
N. H., Dartmouth College, Thayer School of Civil Engineering, 1939. 26 pp.,
bibliography, charts. (Student paper series, No. 1.)
One part of the report deals with the history of labor unions m shipyards.
Labor conditions in P uerto Rico. By P. Rivera Martinez. (In Labor Information
Bulletin, U. S. Bureau of Labor Statistics, Washington, February 194U,
PP- 4-7.)

Labor relations in the chemical in d u stry.


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Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

1035

International Labor Conditions
Geneva, International Labor Office
Í fl7 ^eriCai>i branch, 7.34 Jackson Place NW., Washington, D. C.), 1940.
107 pp., charts. (Studies and reports, series B, No. 32.)
results of a study of changes in the imports and exports of various countries
and of accompanying changes m total employment and in the income of workers.
d th-a t m mo!t mst,ances the countries that experienced comparatively
D a S tiv e wslight
'S h f reductions
S andin eXp°
itS from and
1 9 2 9 to 1932 also experienced comemployment
in the real income of workersE m Vl°ym en t wages, and in tern ation al trade.

and
q S ieT
comParatf aeWrelatively
large increases
in imports
ana eíportef?om
exports trom eiQ32a
1932 tneí
to 1936
alsoedexperienced
large exDansion
of
employment and of the real income of workers.
S expansion OI
The Second L abor Conference of the A m erican States, H abana Novem ber 2 1 December 4 1989
By Moisés Poblete Troncoso. ’ (In M e t i n of the Pan

American Union, Washington, March 1940, pp. 173-180.)

Labor and Social Legislation
Compiled by Eleanor
^ MfficheH. Washington U. S. Department of Labor, Library, February
1940. 13 pp.; mimeographed.
^
A digest o f S tate civil service laws. Chicago, Civil Service Assembly of the United
193m -3 5 PP' ; “ limoograPhed- (Special bulletin No. 1 2 .)
Appointments, salaries, efficiency ratings, promotion, transfer, reinstatement
removal and discharge, and other matters, are covered.
reinstatement,
S tatute law ¡fn Great B ritain ] relating to em ploym ent. By F. N. Ball Southend-on
Sea, Thames Bank Publishing Co., Ltd., 1939. xxxii, 293 pp
b0Utñend on'
em píoySe^tether ^ provislons of the social-insurance and factory laws affecting
The Public contracts (W alsh -H ealey) act: Selected references.

S pravochm k sovetskogo rabotnika [H andbook of the Soviet worker ].

Moscow
Vedomostei Verkhovnogo Soveta, 1939. 582 pp.
’
ConqtifnífnnVn Í 3 nidb00k contai.n ing the principal Soviet laws, including the Stalin
Í^ •
d •T -S concerning wages, labor unions, labor discipline, income
taxes, housing, social insurance, and other matters of labor interest.

Labor Organizations and Congresses
By David J. McDonald and Edward A. Lynch. Silver
Spring, Md., Cornelius Printing Co., 1939. 226 pp.
in
90^to the
h ncelebration
i í h t0+^ °foffthP
Mine Workers
of America
from its origin
m Vs
1890
its Vi!ited
fiftieth anniversary
in January
1940.
“ 6 2 ”— biography of a union. By Harry Lang. New York, Undergarment anrl
Negligee Workers’ Union, Local 62, I. L. G. W. ü!, 1940. 2 2 2 p ?
Historical account of the formation and growth of an important local (Under­
garment and Negligee Workers’ Union, Local 62) of the International Ladies’
Garment Workers Union, with particular emphasis on the leadership of the local.
Brotherhood o f R ailroad T rainm en. By Alexander F. Whitney
(In Labor
ary°l940^ pp.^8 - n j “ ’ U' S‘ BureaU °f Labor Statistics> Washington, FebruCoal and, un ionism .

14

C °n.mf m °raf ó n d e l cuadragésim o aniversario de la Federa-

T Tra^ rjd o r e s d e P uerto Rico que se celebrará el 14 de J u lio
1939^36 pp m u?’ [Federación Llbre de los Trabajadores de Puerto Rico],

de 19^9

^ r!

Wmkemof Puerto¿S

. aCC°Unt °f ^

organization of the ^ e e Federation of

Dublin National
Executive of Irish Trade Union Congress, 1939. 2 0 1 pp
’
meeting
executive body covering 1938-39 and proceedings of 45th annual
Forty-fifth an n u al report of the Irish Trade U nion Congress.


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Federal Reserve Bank of St. Louis

Monthly Labor Review—April 1940

1036

Migration and Migratory Labor
By Francis M. Vreeland and
Edward J. Fitzgerald. Washington, U. S. Work Projects Administration,
1939. xii, 67 pp., charts. (National Research Project, Studies of effects
of industrial change on labor markets, Report No. L-7.)
A study of the flow of population from farm to city and from city to farm and
of the effects of the rural “labor reserve” on the wages and opportunities for
employment of industrial workers. From 1909 to 1929 the farm population
declined by about 2,000,000 persons in spite of the large natural increase. The
flow from country to city was temporarily interrupted during the depression,
the net flow having been reversed in 1932. The movement to the country, how­
ever, was largely to regions of restricted opportunity such as uncultivated tracts
near cities, the cut-over regions in the Great Lakes area, and poor lands in various
parts of the country. Workers sought refuge in these regions temporarily on the
basis of subsistence farming aided by relief or part-time industrial work, and
they remained a part of the labor reserve, pressing potentially if not actually on
the industrial labor market. With increasing labor productivity in both agri­
culture and industry, opportunities for employment depend on an accelerated
rate of expansion of production, which, in turn, involves the problem of over­
coming the restricted demand for goods and services.
N orth of “ 6 6 .” By C. E. Hazard. Washington, U. S. Farm Security Administra­
tion, 1939. 35 pp.; mimeographed.
Reports on the living and working conditions of farm laborers who move
north of Highway 66 to find employment in the potato and sugar-beet fields of
Colorado, Montana, and Wyoming.
F arm -city m igration and in d u stry ’s labor reserve.

M ig ra tio n and social welfare: A n approach to the problem of the nonsettled person
in the com m un ity. By Philip E. Ryan. New York, Russell Sage Foundation,

1940. 114 pp., bibliography.
In concluding his report the author emphasizes the need for a national policy
and program to meet the highly complex difficulties resulting from migration in
the United States.

Occupations and Occupational Guidance
By Lester J. Schloerb and Leland L. Medsker. Chicago,
Science Research Associates, 1940. 48 pp., charts. (Occupational mono­
graph 11.)
Includes information on salaries of different classes of clerical workers.

Clerical occupations.

Job descriptions fo r fu ll-fash ion ed an d seam less hosiery kn ittin g in d u stry in North
Carolina. Raleigh, State Employment Service, 1939. xii, 79 pp.; mimeo­

graphed.

Madison, National Youth Administration of Wiscon­
sin, 1939. 84 pp., illus.; supplement, 32 pp.; mimeographed.
A study of the present status and probable future trends of the heavy-metal
industry. Information is given on opportunities for employment, wages, working
conditions, training, and other matters of importance to workers who are con­
sidering entering this industry. The supplement lists occupations, with the
duties, qualifications, experience, etc., for each.
The m etal m achining trades in P h ila d elp h ia — an occupational survey. By Irving
Lewis Horowitz. [Philadelphia, Pa.?], 1939. 129 pp., bibliography, charts.
The data in the report were assembled between October 1936 and August 1937.
Among the many interesting tables presented in the study are those giving data
on disposition of the worker who becomes inefficient because of old age, and on
the skilled labor shortage in the machine trades of Philadelphia.
The next great in d u stry : O pportu n ities in refrigeration and a ir conditioning. By
L. K. Wright. New York and London, Funk & Wagnalls Co., 1939. 194
pp. (Kitson careers series.)
Among the subjects dealt with in this volume are: The interest in refrigeration;
the scope of refrigeration; refrigeration methods, means, and effects; discoveries
and inventions; trade schools and technical courses; the service department;
distributors, shops, and equipment; elements of refrigeration; and air-conditioning
apparatus. The final chapter contains a bibliography and a list of schools giving
instruction in refrigeration and air conditioning:.
The heavy m etal in du stry.


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Federal Reserve Bank of St. Louis

1037

Recent Publications of Labor Interest

ppBy *• W' “ d M' G- EdIu” dYork, PrenticeotA su^s^anti?il Par.t of the material in this volume was developed from the
ri+v°wV • e*Penencf
connection with the man-marketing clinic m New York
y which was established to aid men and women to get the jobs they desire.
Vocational^ guidance in chem istry and chemical engineering. Washington D C
American Chemical Society, [1939?]. 16 pp., bibliography, Ulus (¿ p rin te d
from Industrial and Engineering Chemistry, News Edition, Nov. 20, 1939.)

Personnel Activities and Management

New York and
T.io-n+SCUSSiS how,t.°.get a Job; the importance of selecting the right job and the
selling ^

^

empl°yee;

Problems i 7 X r t £ t a g and

Res‘sr. paMKSAsasi,
t‘o b I g Z F SC,entlfl° meas“

$sn&

” * °f ‘ho offecto. they were g f n e S y consMerld

S°m‘c S ntoeT
ce .Board,
Board Inc.,
i S T 1940. 23 pp.
erence

a?*6"mYork’
Nati»Pal
Industrial
(Studies
personnel
policy,
No 19 )

Me lDSUranCe C~ .
T ra t7 e Z o v m e T y { k m Pn fnyr, proU em s: B > P rogram s giving special attention to
w S f i r a l - i A nonsup ervisor y produ ction em ployees. New York

National Industrial Conference Board, Inc 1940
personnel policy, No. 18.)
’

71 nn Nturiiao • ’
1 PP* ^btudies ln

Planning
Washington U S Nations!
Resources Planning Board, 1940. 96 pp., m im e o g rap h ed ’
^ atlonal
Statements of current programs for the period July 1 to December 31, 1939

Current program s of work of S tate plan n in g boards.

State-B ^ o m ^ T Z n n T n A r V Í S k
X II—revised ) S B d’ 1939‘ 60 pp’’ charts>'mimeographed.

,Z Ílt Z Slt¡Í0S

and pW ashington, U
(Circular

of interto p lan n in g agencies, 76th Congress,
ReS° UrCeS H a " nins Board'

Salaried Workers
By Erich Engelhard. New York, Works Process
ai?d Colu™b]a University, Department of Social Science

The salaried em ployee
1 qqqmi 7tir atl°I?


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Federal Reserve Bank of St. Louis

1038

Monthly Labor Review—April 1940

Proceedings of thirty-first annual meeting of Civil Service Assembly of the United
States and Canada, San Francisco, Calif., October 16-20, 1939. Chicago,

Civil Service Assembly of the United States and Canada, [1939?]. 86 pp.
Includes discussions of retirement, in-service training, public-relations programs,
credit unions, the place of the health program in personnel administration, com­
pulsory health insurance in California, and the coordination of employment testing
in the public service.
Attitudes and emotional problems of office employees. By Harold B. Bergen and
others. New York, American Management Association, 1939. 34 pp.
(Office management series No. 87.)
The protection of professional titles. By Marie-Thérèse Nisot. (In International
Labor Review, Geneva, January 1940, pp. 30-46; February 1940, pp. 115—
133.)
The first article dealt with engineers and architects, and the second, with
chartered accountants and veterinary surgeons.

Sickness Insurance and Medical Care
Sickness insurance and rural medical assistance.

Office. Geneva, League of Nations, 1939.
on Rural Life, 1939, monograph 15.)

Prepared by International Labor
33 pp. (European Conference

Copenhagen, 1939. 135
pp., pasters.
An English section of the report summarizes the provisions of the “social reform”
concerning the invalidity insurance court in Denmark and its activities.
The National Health Insurance Acts, 1936-38. By Henry Lesser. London,
Stone & Cox, Ltd., 1939. lxiv, 1284 pp.
The volume contains the National Health Insurance Acts, 1936-1938, of Great
Britain, Northern Ireland, Eire, and the Isle of Man, with explanatory notes,
reported cases, decisions of the Minister of Health of Great Britain, and statutory
rules and orders.
Choice and change of doctors: A study of the consumer of medical services. By
Gladys Y. Swackhamer. New York, Committee on Research in Medical
Economics, 1939. 47 pp.
The study, covering 365 self-supporting families of small means in New York
City, shows th at the families made a variety of uncoordinated choices among
physicians, clinics, hospitals, self-medication, etc. Informed choice of physician
was infrequent, while change from one medical resource to another was frequent.
The report points out the difficulties met by families in this low-income group in
securing the best treatment, and, for the group covered, it indicates that the
family doctor is a vanished ideal in the majority of cases.
Medical care. (In Law and Contemporary Problems, Vol. VI, No. 4, Duke Uni­
versity, School of Law, Durham, N. C., 1939, pp. 495-680.)
This issue is devoted to various phases of the problem of providing medical
care. The articles cover voluntary nonprofit medical and hospital plans, official
plans such as th at of the medical-care program for Farm Security Administration
borrowers, the antitrust prosecution against the American Medical Association,
the background of the Wagner National Health Bill and public medical services
under this bill, and legislative proposals for compulsory health insurance.
The patient’s dilemma: The quest for medical security in America.
By Hugh
Cabot, M. D. New York, Reynal & Hitchcock, Inc., 1940. 284 pp.
The author discusses the problem of securing adequate health care for the
American people. Subjects discussed include the impact of scientific discoveries
on modern medical practice, elements of good medical care and estimates of its
cost, the search for medical security, and the function of the Government in
relation to medical care.
The medical care program for Farm Security Administration borrowers. By Brock
C. Hampton. (In The Health Officer, U. S. Public Health Service, Wash­
ington, December 1939, pp. 287-292.)
Details of this program were published in the March 1939 Monthly Labor
Review (p. 592).
Beretning fra Invalideforsikringsretten for aaret 1988.


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Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

1039

By Jack E. Thomas. Berkeley, University of Cali­
fornia, Bureau of Public Administration, 1939. 39 pp., bibliography; mimeo­
graphed. (1939 Legislative problems, No. 13.)
The report considers the question of the administration of public-health services
with special reference to California. Appendixes contain tables showing the legal
provisions relating to executive health officers in the different States and those
relating to State boards of health.
P u blic health organization.

Social Security
Paper
delivered by J. Douglas Brown before American Economic Association,
Philadelphia, December 27, 1939. [Princeton, N. J., Princeton University,
1940?]. 15 pp.; mimeographed.
Analysis of fiscal and other provisions of the social-security system in the United
States.
O utline o f em ployer’s duties under Social S ecu rity A ct and In tern al Revenue Code ,
as am ended A u gu st 1989. Washington, U. S. Social Security Board and
Bureau of Internal Revenue, 1939. 14 pp.
The investm ent of the fu n d s of social insurance in stitu tion s. Geneva, International
Labor Office, 1939. 196 pp. (Studies and reports, series M, No. 16.)
Econom ic problem s in provision of security against life hazards of workers.

Technological Changes and Productivity of Labor
By W. D. Evans. Washington, U. S. Bureau
of Labor Statistics, 1940. 22 pp., charts. (Serial No. R. 1040, reprint from
February 1940 Monthly Labor Review.)
Coal m ine m echanization year book, 1939. Washington, American Mining Con­
gress, 1939. 366 pp., diagrams, illus.
Progress in mechanical loading of coal is dealt with, both in a special section of
the report and in papers delivered at the convention of the organization which are
reproduced in this volume.
In d iv id u a l p rodu ctivity differences.

Changes in

technology and labor requirem ents in

crop production: Vegetables.

By J. C. Schilletter, Robert B. Elwood, Harry E. Knowlton. Washington,
U. S. Work Projects Administration, 1939. xiv, 131 pp., charts, illus.
(National Research Project, Studies of changing techniques and employ­
ment in agriculture, Report No. A12.)
This study deals with the period from 1918 to 1936 and covers primarily
sweetpotatoes, tomatoes, lettuce, muskmelons, onions, and cabbage. The Irish
potato was covered in a separate report. The extreme variety of products and of
conditions of production makes impossible a summary of labor requirements per
unit of product, but the study indicates th at unit labor requirements in these
industries did not follow the general downward trend in most branches of agricul­
ture. Among the causes are the heavier toll of diseases and insect pests; a rela­
tive shift of vegetable acreage to poorer lands; a decline in fertility of some areas,
such as certain irrigated lands, due to the accumulation of deposited salts; the
tendency of farmers and unemployed workers during the later years covered by
the study to attem pt the production of vegetables without experience or sufficient
facilities to obtain high yields; and the increasing emphasis on quality, uniformity,
and careful packing to meet market demands.
Costs of tractor logging in southern pine. By Robert E. Worthington. Washing
ton, U. S. Department of Agriculture, 1939. 63 pp., charts, illus. (Tech­
nical bulletin No. 700.)
Production-cost investigations, carried on by the Forest Economics Division
of the Forest Service, U. S. Department of Agriculture, have developed a method
of cost presentation here described and illustrated comprehensively for the first
time. The field covered was mainly in Arkansas in the spring of 1936. In the
appendix there are extensive logging-cost tables involving unit cost in man-hours
and in dollars. The information is described as useful in the selection of logging
methods, but such studies may prove to be of wider interest.
2 1 7 5 9 3— 40-


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Federal Reserve Bank of St. Louis

17

Monthly Labor Review—April 1940

1040

Unemployment Insurance and Relief
Ability to work, as interpreted by [unemployment] benefit decisions of State tribunals.

By Reynold J. Bossidy. (In Labor Standards, U. S. Division of Labor
Standards, Washington, February 1940, pp. 1-3.)
By Charles Price Harper.
Clarksburg, W. Va., Clarksburg Publishing Co., 1939. 129 pp., bibliography.

The administration of the Civilian Conservation Corps.

Annual report of Director of Civilian Conservation Corps, fiscal year ended J une SO,
1989. Washington, 1939. 123 pp., 13 tabular folders.

Includes data on the enrollment, work accomplishments, health, educational
facilities, job training, safety activities, etc., of the Civilian Conservation Corps
during the fiscal year. A short review of the work accomplishments and educa­
tional activities of the Corps during the 6 years of its independent operation
appeared in the December 1939 Monthly Labor Review (p. 1409).
Seasonal workers and unemployment insurance in Great Britain, Germany, and
Austria. A survey of legal provisions and administrative practice through

1938. By Franz Huber. Washington, U. S. Social Security Board, Bureau
of Research and Statistics, 1940. 167 pp. (Bureau report No. 4.)

By Wilbur J.
Cohen. Washington, Social Science Research Council, Committee on Social
Security, 1940. 32 pp. (Pamphlet series, No. 2.)

Unemployment insurance and agricultural labor in Great Britain.

Wages and Hours of Labor
Hours and earnings in manufacturing and nonmanufacturing industries, 1932 to
1939. Washington, U. S. Bureau of Labor Statistics, 1939. 43 pp.; mimeo­

graphed.
The averages given in this compilation supersede those formerly published by
the Bureau of Labor Statistics in its monthly reports on employment and pay
rolls. A bulletin is now being prepared for publication which will give explana­
tions of the revisions and the methods used in making them, together with a
complete series of all Bureau of Labor Statistics monthly data on hours and earn­
ings in manufacturing and nonmanufacturing industries, from 1932 to the end
of 1939.
Earnings and hours in the hat industries, 1939. Washington, U. S. Bureau of
Labor Statistics, 1939. 44 pp. (Bulletin No. 671.)
By J. Perlman and E. B. Morris. Wash­
ington, U. S. Bureau of Labor Statistics, 1940. 13 pp. (Serial No. R. 1055,
reprint from December 1939 Monthly Labor Review.)

Annual earnings in meat packing, 1937.

By Frances M. Jones and
George E. Votava. Washington, U. S. Bureau of Labor Statistics, 1940.
22 pp. (Serial No. R. 1041, reprint from February 1940 Monthly Labor
Review.)
Union scales of wages and hours in printing trades, June 1, 1989. By Frank S.
McElroy. Washington, U. S. Bureau of Labor Statistics, 1940. 25 pp.,
charts. (Serial No. R. 1046, reprint from December 1939 Monthly Labor
Review.)
Salary trends in Washington cities, 1929—1939. Seattle, University of Washington,
Bureau of Governmental Research, 1939. 42 pp.; mimeographed. (Report
No. 40.)
This survey includes data on salaries paid by 109 municipalities.

Earnings and hours in men’s neckwear industry, 1939.

By R. F. Hale and R. L. Gastineau. Washington, U. S. Department of Agriculture, Agricultural Marketing
Service, 1940. Various paging, charts.

Reliability and adequacy of farm wage rate data.


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Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

1041

Salary determination: Common policies and selected practices in forty American
corporations. By John W. Riegel. Ann Arbor, University of Michigan,

Bureau of Industrial Relations, 1940. 278 pp., bibliography, charts. (Report
No. 2.)
A study of methods for determining “compensation according to merit.” I t
is stated th at the findings rest chiefly upon interviews and inspections at the
plants of 40 companies (chosen because of their employment of specialists in salaryproblems) and upon “the consensus of a hundred executives who met at the Uni­
versity of Michigan in five conferences on the subject of salary administration.”
Five-day week practices in New York City. New York, Merchants’ Association of
New York, Industrial Bureau, September 1939. 5 pp.; mimeographed.

Wartime Labor Measures
By Bruno Biagi. Rome, Istituto Nazionale
Fascista della Previdenza Sociale, 1939. 51 pp. (Appendix to Le Assiscurazioni Sociali, September-October 1939.)
Account of the emergency social legislation enacted, because of the war, in
Germany, France, and Great Britain, and in 8 neutral nations including Italy.
Labor in wartime: A workers’ guide. London, Labor Research Department, 1939.
64 pp.
Deals with organization of the Government in Great Britain to deal with the
war emergency, and the laws and regulations affecting labor.
Allowances for loss of wages for mobilized Swiss workers. (In Industrial and Labor
Information, International Labor Office, Geneva, February 5, 1940, pp.
129-132.)
M ilitary service and contracts of employment. (In International Labor Review,
Geneva, February 1940, pp. 165-176.)
This article continues the series, begun in the November 1939 International
Labor Review, on contracts of employment of workers called for military service,
and covers provisions in force in Belgium, Hungary, and Italy. The first article
dealt with contracts in France, Germany, Great Britain, and Poland. The main
purpose of these contracts of employment is to insure reinstatement of workers in
employment upon termination of their military service.
La legislazione sociale di guerra.

Youth Problems
By Mrs. Cecil Chesterton. London, Nicholson & Watson,
Ltd., 1939. 256 pp.
A study of the hardships of young people in England with reference to unemploy­
ment, homelessness, and lack of opportunity for social contacts.
Work programs for young people. By Charles E. Noyes. Washington, Editorial
Research Reports, 1013 13th Street NW., 1940. 17 pp. (Vol. 1, 1940, No. 3).
Subjects discussed in this pamphlet include: The problem of unemployed
youth; labor camps in European countries; the Civilian Conservation Corps; and
the expansion of work programs for youth
What price youth?

Review of Dominion-Provincial youth training programme for fiscal year ending
March 31, 1939. Ottawa, Canada, Department of Labor, 1939. 19 pp.

The purpose of this Canadian training scheme was to fit young persons for em­
ployment, though not necessarily wage-earning jobs. The program included:
Work training projects allied with forestry and mining; occupational training
classes for men and women in urban districts; a wide range of agricultural courses
for young people from the farms; and physical recreation projects, chiefly among
youth in urban sections.

General Reports
Chicago,
Governors’ Conference, 1313 East 60th Street, [1939?]. 142 pp., illus.
The subjects covered at this thirty-first annual conference of State governors
included Federal-State relations with respect to health and public works, admin­
istrative organization, labor relations, and State fiscal problems such as taxation
in relation to public services and old-age assistance.
Proceedings of Governors’ Conference, Albany, N. Y., June 26-29, 1939.


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Federal Reserve Bank of St. Louis

1042

Monthly Labor Review—April 1940

Report of Department of Labor of Canada for fiscal year ending March 31, 1935.

Ottawa, 1940. I l l pp. .
Summarizes the activities of the Dominion Labor Office under the various stat­
utes which it is authorized to administer.
Denmark, a social laboratory. By Peter Manniche. Copenhagen, G. E. C. Gad,
1939. 216 pp., bibliography, illus.
A discussion of the whole economic make-up of Denmark, but paying special
attention to cooperatives (farmers’ and urban organizations), and social legislation
such as th at relating to social insurance, housing, living standards, unemploy­
ment, etc.
Economic problems of modern India, Volume I. Edited by Radhakamal Mukerjee.
London, Macmillan & Co., Ltd., 1939. xix, 443 pp.
The contributions of more than a dozen outstanding British and Indian scholars
are brought together in this book, arranged under three general heads-—back­
ground, agriculture, and trade. Specific subjects treated include organization
of agriculture, rural reconstruction, agricultural marketing, and cooperative
societies.
Fascist era, year X V I I (October 28, 1938-October 27, 1939). Rome, Fascist
Confederation of Industrialists, 1939. 213 pp. (In English.)
Account of the achievements in Italy during 1938-39 in industry, agriculture,
and commerce, in labor legislation and social insurance, and in cultural improve­
ment of the masses.
Statistisk-tfkonomisk oversikt over dret 1939. Oslo, Statistiske Sentralbyrá, 1940.
85 pp., charts.
Annual review of economic conditions in Norway in 1939, including data on
employment, unemployment, and the price level.
Printed in Norwegian with French translation of table of contents.
Palestine blue book, 1938. Jerusalem, Government Printer, [1939?]. 505 pp.
All statistics and returns except where otherwise noted are for the year ended
December 31, 1938. Includes, among various other data, information on wages,
hours, cost of living, and cooperative societies.
Anuario estadístico de Venezuela, 1938. Caracas, Ministerio de Fomento, Direc­
ción General de Estadística, 1939. xvi, 532 pp.
Includes findings of the housing census of 1936 by States and capitals; total and
average salaries and wages in industry and commerce by States, as shown in the
industrial census of 1936; and wholesale and retail prices and price indexes for
various commodities for 1938 and earlier years.


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Federal Reserve Bank of St. Louis

U. S . G O VERN M EN T P R IN T IN G O F F IC E ; 1940