Full text of Monthly Labor Review : April 1940, Vol. 50, No. 4
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LABOR REVIEW / I MMmnmnwun^ MAY 1 4 7940 S ÏF ÎM ... 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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_____________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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___ ____ https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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.) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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.) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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_____ ___________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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______________ _____ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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). https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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.) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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.) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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). https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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). https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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________ https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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).) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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). https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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.)) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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_________ _______ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (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___________ _____ _____________________________ https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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..------ ------------ --------— https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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________________________________ https://fraser.stlouisfed.org 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). https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 978 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PER IOO ON THE PAY ROLL Labor Turn-Over https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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_________ https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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__________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 .) https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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? https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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- https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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