Full text of Monthly Labor Review : February 1942, Vol. 54, No. 2

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P h o to b y c o u r te s y o f N a tio n a l Y o u t h A d m in is ti

Learning to Repair and Check A irp la n e Motors

issue

FEBRUARY 1942
Voi. 54 • Ho. 2


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UNITED STATES DEPARTMENT OF LABOR
Frances Perkins, Secretary

BUREAU OF LABOR STATISTICS
Isador Lubin, Commissioner (on leave)
A. F. Hinrichs, Acting Commissioner
Donald D avenport, Chief,
Employment and Occupa­
tional Outlook Branch

Aryness Joy, Chief, Prices and
Cost of Living Branch

Henry J. Fitzgerald, Chief,
B u sin e ss M a n a g em e n t
Branch

N. Arnold Tolies, Chief, Work­
ing Conditions and Indus­
trial Relations Branch

Hugh S. Hanna, Chief, Edi­
torial and Research

Sidney W. Wilcox, Chief Stat­
istician

C H IE F S

O F D I V IS IO N S

Herman B. Byer, Construction
and Public Employment

Florence Peterson, Industrial
Relations

J. M. Cutts, Wholesale Prices

Boris Stern, Labor Informa­
tion Service

W. Duane Evans, Productivity
and Technological Develop­
ment

Stella Stewart, Retail Prices

Max D. Ivossoris, Industrial
Accidents

Lewis E. Talbert, Employment
Statistics

John J. Mahaney,
Tabulation

Machine

Emmett H. Welch, Occupa­
tional Outlook

Robert J. Myers, Wage and
Hour Statistics

Faith M. Williams, Cost of
Living

Published by the Bureau of Labor Statistics, under authority of
Public Resolution No. 57, approved Al 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 Alexico, $3.50; other countries, $4-75.
This publication approved by the Director, Bureau of the Budget.


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EDITOR

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FEBRUARY 1942,r-iVol. 54, No. 2
page

Special articles:
Wage structure of the motor-vehicle industry: Part 1______________
Program of the International Labor Organization_________________
Effects of a minimum wage in the cotton-garment industry, 1939-41.
Woman domestic workers in Washington, D. C., 1940______________
Industrial and rural workers in FSA homesteads___________________

279
305
318
338
360

Wartime policies:
Pacific coast shipbuilding agreement_____________________________
General conscription of manpower in Great Britain, 1941___________
Withdrawal of young women from certain pursuits in Great Britain. _
Increased allowances for dependents in British military forces______
Australian employment regulations, 1941_________________________
Extension of wartime wage control in Canada to small employers___

384
385
387
388
389
391

Employment and business conditions:
Characteristics of shipbuilding labor hired during first 6 months of
1941_________________________________________________________
French labor charter____________________________________________
Compulsory labor in Turkish mines and public works______________

393
397
403

Migratory labor:
Migration and settlement in the Yakima Valley, Washington_______

405

Education and training:
British plan for training the disabled_____________________________

407

Labor organizations:
Labor organizations in Canada, 1940_____________________________
Union membership in Chile, end of 1940__________________________

409
411

Industrial disputes:
Recent strikes______________________
Strikes in October 1941__________________________________________
Activities of the United States Conciliation Service, December 1941.
National War Labor Board established___________________________
Compulsory arbitration in Cuban labor disputes__________ ________

412
413
425
427
431

Social insurance:
Savings-bank life insurance in Massachusetts and New York----------Unemployment-compensation operations, November 1941----Sickness insurance for insurance pensioners in Germany------------------

432
441
445

Employment services:
Placement work of public employment services, November 1941------Federalization of public employment offices_______________________


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446
451

Contents

II
Labor laws and court decisions:

•

Court decisions of interest to labor:
Right of employer to express opinion in labor matters__________
Definition of “hours worked” in underground mines___________
Jurisdiction of Labor Relations Board sustained by Supreme Court
in two cases______________________________________________
Wage-hour “split workweek” rule upheld_____________________

Page
452
452
453
454

Cost of living:
Changes in living costs in large cities, December 15, 1941__________

455

Standards of living:
Maximum rentals in Canada after December 1, 1941---------------------Rationing of canned foods in Great Britain_______________________

461
461

Vacations with pay:
Paid vacations for salaried employees in Dominican Republic_______

462

Wage and hour statistics:
Wages, hours, and working conditions of union street-railway employ­
ees, June 1, 1941________________________ .------------------------------Wages and hours of union motortruck drivers and helpers, June 1,
1941________________ ______________________________ __________
Wage-rate changes in United States industries_____________________
Salaries in colleges and universities, 1939-40--------------------------------Great Britain and Northern Ireland— Weekly earnings in 1941_____
England and Wales— Minimum wage for agricultural workers______

463
487
495
497
499
501

Labor turn-over:
Labor turn-over in manufacturing, November 1941_____________ —

508

Building operations:
Summary of building construction in principal cities, December 1941 _

503

Retail prices:
Retail costs of food, December 16, 1941___________________________
Electricity prices, December 1941________________________________
Gas prices, December 1941______________________________________

512
518
520

Wholesale prices:
Wholesale prices, December and year 1941________________________

523

Trend of employment and unemployment:
Summary of reports of employment for December 1941____________
Detailed reports for industrial and business employment, November
1941_________________________________________________________
Unemployment in December 1941____

530
534
546

Labor conditions in Latin America_________________ _______ 411, 431, 462
Recent publications of labor interest_________________________________ 548


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This Issue in Brief

Wage structure in motor-vehicle industry.
The wage structure of the motor-vehicle industry reflects in large part certain
fundamental characteristics of the industry itself. In 1940, more than half the
automobile plants which employed some 90 percent of all the workers were oper­
ated by 11 large companies, and these were mostly located in the East North
Central or “automobile” States. A survey of 322,941 workers in 167 of these
plants showed that average hourly earnings amounted to 96.1 cents in May and
June of that year and that the earnings of half the workers were within 9 cents of
that average. The earnings rate in 281 parts plants was 83.8 cents per hour.
Earnings increased about 17 percent between the spring of 1940 and November
1941, but the basic characteristics of the wage structure remained relatively
unchanged. Page 279.

International labor program.
Even during the war period the International Labor Organization has continued
to function in a very important degree, as indicated by the attendance and dis­
cussions at the recent Conference in New York City. During the post-war recon­
struction period the Organization’s experience should be of still greater value in
bringing about better labor standards and better relations between employers and
employees. Possibly its field of interest and service will expand to cover broader
fields of economic and social service. Page 305.

Effects of minimum wage in cotton-garment industry.
The establishment of the 30-cent and 32}(i-cent minimum rates in the cottongarment industry in 1939 and 1940 resulted in few displacements of workers, and
most of the workers separated experienced little hardship in securing and adjusting
themselves to new jobs. These adjustments were facilitated by the fact that
the economic position of the industry following the fixing of the minimum rates
was generally favorable. Page 318.

Woman domestic workers in Washington, D. C.
Low earnings and long hours were disclosed in a study of domestic workers in
Washington, D. C. The median daily time on duty of white women working full
time was 12 hours and 50 minutes. Weekly hours ranged from 42 to 105. The
median weekly cash wage for the entire group (part- or full-time workers) was
$8.10. Among the full-time resident workers it was $9.35 for white women and
$8.85 for colored women. No additional allowances were paid where the worker
lived out. Annual incomes ranged from $260 to $900 for whites and from $156
to $780 for Negroes. Less than half of the women had work the whole year;
about a fifth worked from 2 weeks to less than 28 weeks during the year. Page 338..

Characteristics of newly hired shipyard labor.
One-quarter of the skilled workers in shipyards hired during the first half of
1941 came from the ranks of the unemployed, and 6 percent were drawn from


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IV

This Issue in Brief

other shipyards. Sixty-six percent came from the State in which the hiring ship­
yard was located, 21 percent from adjacent States, and only 11 percent from more
distant States. Page 393.

Workers on FSA homesteads.
In its homestead program, the Farm Security Administration is testing out on
a limited scale the relative effectiveness of various methods of attacking four
problems of low-income industrial and agricultural workers. These problems
are insecurity of tenure, poor living conditions, debt, and poor health. The
article on page 360 gives a general picture of life on FSA homesteads and describes
several individual homestead projects.

General conscription of British manpower.
Women as well as men are subject to conscription for service in the armed
forces or civil defense as well as industry, under the terms of the British National
Service legislation adopted late in 1941. Although women will not handle lethal
weapons unless they volunteer, their conscription establishes a new policy. For
the present, young women in the age groups between 20 and 30 years will be called
for service in the order given. They will have the option of choosing between the
auxiliary forces, civil defense, and specified industries. Those already doing
vital work or service will be reserved from calling up. Married women are not
affected. For men the military conscription age is extended from 40 to 50 years.
Boys and girls between the ages of 16 and 18 are to be required to register.
Page 385.

Wages and working conditions of organized street-railway employees.
Average hourly wage rates of union motormen, conductors, and bus operators
was 79.2 cents in June 1941, according to the annual Bureau of Labor Statistics
survey covering 59 cities. This average covers operators on local lines and also
those employed on city suburban lines furnishing local service, but does not
include employees of intercity lines. The index of hourly rates advanced 3.6
percent between June 1940 and June 1941, and on the latter date was 14.4 percent
above the 1929 average. Page 463.


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MONTHLY LABOR REVIEW
FOR FEBRUARY 1942

WAGE STRUCTURE OF THE MOTOR-VEHICLE
INDUSTRY: PART 1 1
Summary
THE wage structure of the motor-vehicle industry reflects, in large
part, certain fundamental characteristics of the industry itself.
The concentration of management is apparent from the fact that,
in 1940, more than half the automobile plants, in which over 90
percent of all the wage earners were employed, were operated by the
11 large companies producing virtually all of the Nation’s automobiles.
Half of the plants are in the five East North Central States which
comprise the “ automobile region” ; during May and June 1940 they
employed 85 percent of the wage earners.
The industry is characterized by a high degree of mechanization,
and the labor force therefore includes relatively large numbers of
semiskilled workers. Virtually all of the larger establishments have
concluded agreements with trade-unions. The level of hourly earn­
ings in the industry has been relatively high almost from its begin­
ning, and there is a marked tendency for individual earnings to con­
centrate about the general average. The earnings of 471,270 em­
ployees in the 448 motor-vehicle establishments included in a special
survey made by the Bureau of Labor Statistics in May and June
1940 averaged 92.2 cents, and the earnings of half these workers dif­
fered from the general average by 11 cents or less.
Wage levels in the motor-vehicle industry rose about 17 percent
between the date of this special survey and November 1941. Because
the increases affected the majority of the wage earners in a compara­
tively uniform fashion, the fundamental characteristics of the wage
structure remained essentially the same until the early fall of 1941.
This survey covered the country’s largest single industry immediately
prior to its complete reorganization for the production of war materials.
1
Part 2 of this report, outlining data on the earnings and hours of workers in automotive-parts plants,
annual earnings of motor-vehicle workers in Michigan, and information on the industry as a whole, will
appear in a subsequent issue. The data for this survey were collected under the supervision of O. R. Mann
of the Bureau’s Division of Wage and Hour Statistics. The report was prepared by Harold R. Hosea,
with the assistance of George E. Votava, under the general direction of Victor S. Baril.


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279

280

Monthly Labor Review—February 1942

Earnings in the automobile division of the industry are higher, on
the average, than those in parts plants which are smaller and more
widely scattered and show less concentration of management. The
hourly earnings of 322,941 workers in the 167 automobile plants
included in this survey averaged 96.1 cents, or 12.3 cents above the
corresponding figure for 148,329 employees in 281 parts plants.
Earnings in automobile plants located in the “automobile region”
were slightly higher in general than those in other areas. Average
hourly earnings in this area amounted to 97.7 cents, and Michigan
V workers earned an average of 98.5 cents per hour. Geographic dif­
ferences among establishments operated by the larger companies were
relatively unimportant.
Weekly hours during the period of the study averaged 36.8, and
t average weekly earnings amounted to $35.42. The annual earnings
of 141,114 workers employed in Michigan motor-vehicle plants dur­
ing at least a part of each quarter of the year ended June 30, 1940,
F averaged $1,659, exclusive of earnings from employment not cov­
ered by the State unemployment-compensation law.
Purpose and Scope of Study
Preeminent among American manufacturing industries and pre­
senting the outstanding example of mass-production methods, the
motor-vehicle industry has wielded a tremendous influence on Ameri­
can wage structure and has been the deserving subject of much re­
search. The Bureau of Labor Statistics first studied wages and
hours of work in this industry in 1919. Subsequent surveys of wages
and hours were undertaken every 3 years to 1928, and biennially
from 1928 to 1934.2 The availability, after the early thirties, of the
^^B ureau’s figures on’*average hourly earnings and average weekly
hours of work for the industry as a whole reduced the necessity for
frequent special surveys, and no other detailed study was under­
taken until May and June 1940. The results of the 1940 study are
described in the present article.
The scope of the 1940 survey is not limited to the establishments
included in the motor-vehicle industry as defined by the United States
Census of Manufactures. The census definition includes “ Estab­
lishments primarily engaged in the manufacture or assembly of com­
plete motor vehicles, motor-vehicle chassis, bodies and such parts and
accessories as gears, wheels, radiators, bumpers, shock absorbers,
frames, horns, windshield wipers, etc.; and trailers for motortrucks
and truck tractors. This industry does not include establishments
manufacturing tires and tubes, springs, ignition apparatus, batteries,
2
See Monthly Labor Review, March 1936 (pp. 521-533): Wages, Hours, Employment, and Annual Earn­
ings in the Motor-Vehicle Industry, 1934. (Reprinted in IT. S. Bureau of Labor Statistics, Serial No. R. 356^


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Wage Structure of Motor-Vehicle Industry

281

starting and lighting equipment, headlights, sheet-metal stampings,
hardware, etc.” The data for this survey were collected from estab­
lishments classified in the motor-vehicle industry as defined above
and, in addition, from plants whose principal products were automo­
tive stampings, automotive electrical equipment, automobile engines
and parts, automobile hardware, coil and leaf springs, and certain
widely used types of accessories. Omitted from the survey (as well
as from the census definition of the industry) are plants producing
forgings and castings (except machined forgings and castings made
primarily for use in motor vehicles), tools and garage equipment, tires
and tubes, batteries, trailers for attachment to passenger cars, and
products made in other industries for use in the motor-vehicle industry
such as upholstery materials, bolts, nuts, and wire (in bulk). Data on
the numbers and types of establishments included in the survey
appear in a subsequent section (p. 285).
The data collected in connection with the 1934 survey revealed sig­
nificant differences in earnings and employment as between those
establishments which manufacture finished motor vehicles and bodies
and those which produce parts and equipment for automobiles. The
present survey therefore follows the procedure of the earlier study and
treats these divisions separately. The term “ motor-vehicle industry”
is used to indicate the combination of the two divisions. Plants pro­
ducing finished vehicles and bodies are grouped under the category
“ automobile division” ; the term “ automotive-parts division” includes
establishments producing parts and equipment for new vehicles and
for replacements.
Important changes in the motor-vehicle industry have taken place
since the data for the present survey were collected. Substantial wage
increases have been made, affecting the greater part of the wage
earners in the industry; most of these became effective during the
second quarter of 1941. Such changes are discussed in a later section
dealing with the trend of employment, pay rolls, hours, and earnings.
These recent wage increases are of considerable importance in an
analysis of the industry’s wage structure, but they are probably much
less significant than other effects of the defense program which have
involved radical changes in product and major shifts in the industry’s
occupational structure. Certain of these developments are discussed
in the following summary of the characteristics of the industry. It
may be noted in passing that the firms and establishments which
comprised the motor-vehicle industry at the time of this survey no
longer constitute a homogeneous group with respect to products, types
of employees, or wage structure. The data presented in this report,
therefore, assume added significance, at least historically, since they
supply a picture of the wage structure of the country’s largest single
industry at the end of an era and just prior to a period of transition.

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282

Monthly Labor Review—February 1942

Any adequate analysis of the reorganized industry, as a whole, must
await the further development of the changes necessitated by the war
program.
Characteristics of the Industry
The production of motor vehicles and parts has provided employ­
ment for some 4 to 7 percent of all the wage earners in manufacturing
industries for the past two decades. The motor-vehicle industry in
1939 ranked first in number of wage earners employed as well as in
value of products, according to the Census of Manufactures. Pay
rolls in the industry totaled nearly 7 percent of the amount paid to all
wage earners in manufacturing in 1939. In May 1940, the month
during which the present survey was made, the motor-vehicle industry
employed approximately 440,000 wage earners and maintained a
weekly pay roll of more than $14,000,000.
The production of automobiles on a commercial basis began with
the turn of the century, and the principal problem of the industry
until about 1920 was that of producing a supply of dependable vehicles
sufficient to meet the rapidly increasing demand. By 1905, produc­
tion had reached an annual rate of 24,000 passenger cars; over 180,000
were built in 1910 and about half a million were in use in that year.
Almost a million vehicles were made in 1915, and the 1916 total was
well over a million and a half. In the boom year of 1929, the retail
cost of the 4,500,000 new passenger cars sold was about $4,000,000,000,
and more than $2,500,000,000 was paid for used cars. Although
the necessity for selling as well as producing automobiles became ap­
parent in the early twenties, the marketing problem first assumed
really serious proportions about 1929, and production was not main­
tained on the basis of the 7,000,000 cars originally scheduled for that
year. With the coming of the depression, output declined steadily
through 1932, and then rose to a total of 4,700,000 units (commercial
vehicles and chassis included) with a wholesale value of more than
$2,800,000,000 in 1937. The total units produced in 1939 were
slightly in excess of 3,500,000. During May 1940, approximately
390,000 units were produced, of which more than four-fifths were
passenger cars.
Several hundreds of companies have been organized for the manu­
facture of motor vehicles and parts; 676 different makes of auto­
mobiles were registered in Massachusetts in 1916, but 12 manufac­
turers had produced three-quarters of the total. Industrial mortality
in the field was enormously high and much of it occurred during the
infancy of the manufacturing companies. During the last 10 years
the “ big three” (Chrysler, Ford, and General Motors) have made


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Wage Structure of Motor-Vehicle Industry

283

about 90 percent of all the automobiles produced in the United
States.3
More than 80 percent of the 400,000 wage earners in the motorvehicle industry in 1939 were employed in plants in the five East
North Central States (Ohio, Indiana, Illinois, Michigan, and Wis­
consin). Michigan alone accounted for nearly two-thirds of the
workers, and more than 90,000 wage earners were employed in motorvehicle plants within the city limits of Detroit. New England, where
the automobile was first developed, had 43 plants employing only
about 2,300 wage earners in 1939. Concentration of the industry in
the East North Central States is somewhat less apparent from the
distribution of plants, although nearly half are in this area.
The motor-vehicle industry, particularly the automobile division,
has consisted of two general types of establishments. Of the 1,054
plants reported by the census in 1939, almost three-fourths had fewer
than 100 employees and were producing either specialized vehicles
(ambulances, fire apparatus, etc.) or small parts and accessories. At
the other extreme were 170 plants with 500 or more employees each;
a substantial proportion of these were the vehicle and parts plants
operated by the 11 largest companies in the field. The production
of motor-vehicles and parts also has been essentially an urban indus­
try. Well over half of the vehicle and body plants and about twothirds of the workers included in this survey were found in metro­
politan areas of 250,000 population and over. The parts plants were,
in general, smaller and more widely scattered, yet half the workers
in the parts plants studied were located in these densely populated
areas.
Total payments to wage earners in motor-vehicle plants amounted
to about 16 percent of the total value of the industry’s products
during 1939. This proportion was substantially below those in com­
parable industries despite the fact that motor-vehicle production,
with its high wage level, ranked first among all manufacturing indus­
tries in total wages paid during that year. This apparent incon­
sistency obviously results in large part from the high degree of mech­
anization within the industry, a condition which was further reflected
in the characteristics of the labor force. Semiskilled workers, par­
ticularly machine operators and assemblers, constituted a very large
segment of that labor force.
Motor-vehicle wage earners were characteristically males. Females
constituted about a fifth of the parts-plant workers, but in the auto­
mobile division, which was more than twice as large on the basis of
employment, only 2 out of every 100 wage earners were women.
3
For a detailed history of the industry with special emphasis on its organization and financial charac­
teristics, see Kennedy, E . D., The Automobile Industry; the Coming of Age of Capitalism’s Favorite
Child, New York, Keynal & Hitchcock, 1941.


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284

Monthly Labor Review—February 1942

Organization of the workers within the industry was relatively
slow in developing, but union agreements are now in effect in -virtu­
ally all important plants of the automobile division and in most of the
larger establishments manufacturing parts. Partly because of the
fact that unionization was accompanied by the demand for abolition
of piece rates, the majority of the wage earners were paid on a timerate basis; less than a fifth were subject to any type of incentive
system at the time this study was made. The most common type of
shift differential was an additional payment of 5 percent, and most of
the plants paid at the rate of time and a half for all work above 8
hours a day, 40 hours a week, or either, with double time for Sundays
and holidays.
RECENT CHANGES IN THE INDUSTRY

The reduction of automobile production for civilian use late in 1941
and the transition by many plants to the manufacture of military
equipment have, of course, produced widespread changes in the indus­
try. These changes will be intensified in 1942 with the virtual
termination of pleasure-car output.
Experience during recent months has demonstrated that the tran­
sition to a wartime production schedule will affect the various indi­
vidual establishments quite differently. The manufacture of army
trucks and small tanks has, in some cases at least, involved but mod­
erate changes in productive processes. The production of aircraft
bodies, shell and bomb parts, or machine guns and anti-aircraft guns,
on the other hand, has typically required wholesale replacement of
machines and equipment and a complete reorganization of production.
It is clearly impossible accurately to predict the effects of this
reorganization upon the labor force of the industry, but certain
general changes appear inevitable. In the first place, the essential
retooling will involve increases in the relative number of tool and die
makers, machinists, and other highly skilled workers; these additions
are likely to be reflected in a continuation of the rise in average earn­
ings within the industry. The workers formerly engaged in massproduction work, such as machine operators, assemblers, etc., will
continue to be laid off temporarily pending development of line pro­
duction for war equipment. The numbers of such workers subject
to this dislocation and the duration of unemployment among them
depend upon several factors. The production of automobiles for
military and emergency civilian use will require relatively minor
reorganization, and plants manufacturing such products as engine
parts will experience little or no change. It follows that the effects
of the shift upon the workers in these establishments will be unim­
portant. The extent to which labor is dislocated in plants subject
to drastic reorganization obviously depends upon the speed and

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Wage Structure of Motor-Vehicle Industry

285

smoothness with which the process is accomplished. One fact is
nevertheless patent: to achieve the production levels planned will
require not only the total manpower of the industry but substantial
additions to it as well.
Certain general changes in the characteristics of the labor force
can be outlined despite the fact that the details of the reorganization
are not yet apparent. It is clear, for example, that the diversity of
products to be produced by the reorganized and expanded industry
will increase greatly. This trend will be reflected in a greater spread
in the skills of the workers and, consequently, a decrease in the former
high concentration of the earnings of individual workers about the
general average for the industry. The proportions of highly skilled
workers, as already pointed out, will increase and the semiskilled
groups will become less important until line production of war equip­
ment is developed. Furthermore, it is possible that the reorganized
industry will require, at least temporarily, a larger proportion of
relatively unskilled workers, a group which was comparatively small
in the motor-vehicle industry prior to the defense program.
The recruitment of additional workers will be inevitable eventually,
and, since the supply of skilled workers is limited, heavy additions to
the semiskilled and unskilled groups and the necessity for training
them are likely. At the same time, increases in the combat forces
may well result in the employment of older workers (many of whom
are skilled) who would not be in the labor market in normal times.
Finally, the labor force of the reorganized industry is almost certain
to be augmented by the employment of women who formed a rela­
tively small proportion of the workers prior to the emergency.
The net effect of these changes, in the absence of unpredictable
developments, will be to increase the spread of earnings in the industry.
Earnings levels will probably be affected further by increases in over
time work, additional shifts, and increased hours.
Coverage of Survey
As defined in the Census of Manufactures, the motor-vehicle and
allied industries embraced 1,228 establishments in 1939, and in the
period May-June of 1940 employed approximately 465,000 workers.4
These establishments include, in addition to the 1,054 plants classified
in the motor-vehicle industry proper (Census industry No. 1810), 90
automotive-stamping plants (industry No. 1472) and 84 plants
producing automotive electrical equipment (industry No. 1640). A
fourth (308) of these plants, which employed 95 percent of the total
wage earners, were included in the present survey (table 1). The
relatively small proportion of the total plants studied results from the
1 This figure is derived by adjusting average annual employment for 1939, as reported by the Census, on
the basis of the monthly employment indexes released by the Bureau of Labor Statistics.


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Monthly Labor Review—February 1942

286

fact that 598 of the 1,228 establishments employed fewer than 21
wage earners and were purposely excluded from the survey; nearly
all the large plants and more than half those with 21 or more wage
earners were surveyed.
T able 1.—Plants and Estimated Wage Earners in Specified Census Industries, and

Number and Percent Included in Bureau’s Survey, M ay—June 1940
Plants

Wage earners
Employed in
plants included
in survey

Included in
survey
Industry classification (census)

Total
(1939)

1

T otal__________________________________ 21,228
Motor-vehicle industry (Census industry No.
1810)_______________________ ________ 31,054
Automotive stampings (Census industry No.
1472)_________________________________
«90
Automotive electrical equipment (Census
industry No. 1640). _______ ______ _____
«84

Per­
Num­ cent
ber
of
total
2

3

Total
(1940)

Number
of wage
earners
included
in sur­
Percent vey 1
Number
of.
total

4

5

6

7

308

25

464,737

443,132

95.4

421, 543

276

26

436.113

428,297

98.2

407,056

19

21

9,431

3,829

40.6

3,426

13

15

19,193

11,006

57.3

11,061

1 Differs from column 5 since employees engaged on experimental work and wage earners not employed on
automotive products were ordinarily excluded from the survey.
2 Includes 598 plants employing fewer than 21 workers and thus excluded from the survey.
3 Includes 524 plants employing fewer than 21 workers and thus excluded from the survey.
4 Includes 32 plants employing fewer than 21 workers and thus excluded from the survey.
« Includes 42 plants employing fewer than 21 workers and thus excluded from the survey.

In addition to the 308 plants included in these distinct census
classifications, the Bureau’s survey included 140 plants classified by
the Census in other industries. These establishments, which employed
a total of 61,825 wage earners, were producing automobile-body
hardware, bearings, pistons and piston rings, transmissions, leaf and
coil springs, and other parts excluded from the motor-vehicle industry
according to the census definition. No attempt is made to relate
the data from these 140 plants to any total for the country, since
separate figures for such establishments are not available from
census data. It is not possible, for example, on the basis of published
census information, to segregate those plants engaged principally in
producing automobile-body hardware from the general-hardware
industry as a whole. Similarly, data for plants manufacturing
motor parts for automobiles are grouped by the Census with those
producing similar parts for marine, stationary, and airplane engines.
The types of plants included in this group were selected in consulta­
tion with representatives of trade associations and manufacturers,
and, when combined with the 308 establishments classified in the
industry by the Census, provide an adequate basis for analysis of the
wage structure of the industry as it is here defined.


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287

Wage Structure of Motor- Vehicle Industry

As indicated above, the detailed analysis of the data collected
treats the automobile and automotive-parts divisions of the industry
separately. Of the 448 plants included in the survey, 167, employing
339,698 wage earners, were engaged in the production of finished
vehicles (including passenger cars, trucks, ambulances, hearses, and
commercial trailers), bodies, and body parts (table 2). The data on
these plants (group A) are presented on page 295.
T able 2. —Plants and Workers Included in Bureau's Survey of Motor-Vehicle Industry,

by Type of Product, M ay-June 1940

Type of product

Number of
plants

Total wage
earners employed

Wage earners
included in
survey 1

1

2

3

Total_______ _____ _____________________________

448

504,957

471,270

Vehicles and bodies (group AU.....................................
Parts (groups B and C)____ _____________________
Parts (group B ) 2 ___________________ _______
Parts (group C ) 3_______________ _______ _____

167
281
141
140

339, 698
165,259
103,434
61,825

322,941
148, 329
98, 602
49, 727

1 Differs from column 2 since experimental workers and wage earners not employed on automotive prod­
ucts were ordinarily excluded from the survey.
2 Includes only plants classified by the U. S. Census of Manufactures as motor-vehicle, automotive­
stamping, or automotive-electrical-equipment plants.
3 Plants classified by the U. S. Census of Manufactures in industries other than motor vehicles, auto­
motive stamping, and automotive-electrical equipment.

To permit comparison with census data, the plants included in the
automotive-parts division are divided into two categories. Group B
is composed of those parts plants classified by the Census in the three
industries for which data are given in table 1. Group C includes the
establishments classified by the Census in various other industries.
These two groups (B and C) are treated as a single unit in the dis­
cussion of the automotive-parts division of the industry which will
appear in a subsequent issue of the Monthly Labor Review.
Data on earnings and hours were transcribed by field representatives
of the Bureau of Labor Statistics from pay-roll and other records in the
plants surveyed.5 With rare exceptions, data were collected only for
wage earners working on automotive products; the number of workers
included in the survey is thus less than the total number of wage
earners employed in the respective plants. Central office and super­
visory employees (except working supervisors) were also excluded.
All data shown regarding clerical or office workers refer to persons
employed in production departments. Plants employing 20 wage
earners or fewer were ordinarily excluded.
Information on occupation, sex, method of wage payment, and
number of hours and total earnings for one pay-roll period during
6
The Bureau wishes to acknowledge with gratitude the cooperation of officials in the plants studied and
the assistance and advice furnished by the staffs of the Automobile Manufacturer’s Association, the Auto­
motive Parts and Equipment Manufacturers, Inc., and the United Automobile Workers of America.


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Monthly Labor Review—February 1942

May or June 1940 were transcribed for all workers in plants employing
21 to 1,000 wage earners. In larger plants, samples varying from 10
to 50 percent of the workers were taken. For such cases, special
sampling procedures were devised for the purpose of insuring adequate
representation of all types of workers. The data for all plants
sampled, as shown in the various tables, have been weighted up to the
actual total automotive employment in the respective establishments
during the pay-roll period selected for study. Average hourly earn­
ings have been calculated by dividing gross earnings by total hours
actually worked during the pay-roll period. The basic rates are,
therefore, raised slightly as the result of relatively small amounts of
extra earnings during overtime periods.
The period during which the survey was made (May-June 1940)
represents neither a high nor a low point for the year. Industry
employment indexes for the 2 months were 109.8 and 104.9, respec­
tively, or almost midway between the low of 82.3 in July and the
December high of 130.2.
Trend of Employment, Pay Rolls, Earnings, and Flours, 1923-41
EMPLOYMENT AND PAY ROLLS

Employment in the motor-vehicle industry has tended to fluctuate
in harmony with employment in the durable-goods industries as a
whole (table 3). However, the changes in motor-vehicle employment
have been more pronounced, a reflection, among other things, of the
extreme sensitivity of the industry to general business conditions as
well as the dependence of a major part of it upon the policies and
fortunes of a relatively small group of manufacturers.6
The annual index of employment in the industry reached its highest
level in 1937 when it stood at 128.3 and indicated an average employ­
ment of nearly 517,000 wage earners during that year. On a monthly
basis, May 1937, with an index of 140.4 and an estimated total of
more than 560,000 wage earners, was the peak (table 4). This figure
exceeds that for the highest previous month, April 1929, by almost
50,000 workers. Employment in the industry was low throughout
1938 except in November and December, and the index of 75.8 for
the year was the lowest since 1933. Increased demand and, later,
anticipation of restrictions on automobile production in connection
with the defense program resulted in rises in 1939 and 1940; the added
effect of defense activities is apparent in a further increase in the level
of employment to more than 540,000 in June 1941. Employment in
establishments classified in the motor-vehicle industry for the pur8 The sensitivity of the motor-vehicle industry to general economic conditions is suggested by data col­
lected in connection with the Study of Consumer Purchases (1934-36), which show that families with annual
incomes between $1,200 and $1,500 spent about $23.50 per year for the purchase of automobiles, while families
with incomes twice as large spent between three and four times as much for automobiles.


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289

Wage Structure of Motor-Vehicle Industry

poses of this survey continued to rise during the second half of 1941,
but the fact that this period marked the end, at least for the duration
of the war, of the industry as it existed formerly, makes these data
of little significance so far as this study is concerned.
T able 3. —Employment and P ay Rolls in Motor-Vehicle and Durable-Goods

Manufacture, by Years, 1923-401
Pay rolls

Employment

Year

Motor-vehicle
industry

Index 2

Durable-goods
manufacture

Motor-vehicle
industry

Durable-goods
manufacture

Estimated
Estimated
Estimated
Estimated
weekly
weekly
wage
wage
Index 2 pay
Index 2 earners
rolls Index 2 pay rolls
earners
(thousands)
(thousands)
(thousands)
(thousands)

1923 _________
1924__________
1925__________
1926__________
1927__________
1928__________

100.6

404.6
377.1
425.8
421.6
369.6
434.8

104.1
96.4
99.5
102.5
96.5
97.7

4,008.9
3,712.5
3,831.1
3,947.8
3,714.9
3, 760.4

100.6

93.6
105.8
104.8
91.9
108.1

$12,703
11,426
13,736
13,239
11,789
14,379

103.2
95.9
100.9
104.8
98.9
102.3

$103,421
96,057
101,157
105,053
99, 049
102,462

1929__________
1930 . _______
1931__________
1932 _________
1933__________
1934 _________

111.3
80.3
71.0
60.5
60.6
94.5

447.4
322.8
286.0
243.7
244.1
380.6

106.2
87.6
67.7
52.8
57.5
72.4

4,089.9
3,375.0
2,607.8
2,034.1
2,215.1
2,787.2

111.6

14,094
8,299
6,740
4,900
4,835
8,601

111.2

111,374
83,969
55,731
33,468
36,867
52, 298

1935__________
1936 _________
1937__________
1938__________
1939__________
1940__________

110.4
113.9
128.3
75.8
97.9
111.3

444.5
458.6
516.7
305.4
394.2
448.0

79.8
90.7
104.3
78.9
90.2
104.3

3,072.1
3,492.5
4,017.2
4,036.5
3,475.2
4,015.1

89.5

11,297
12,976
15, 663
8,737
12, 299
15,274

64.1
80.7
102.4
67.9

64,206
80,840
102,559
68,047
86,334
108,008

90.6
108.8
104.8
93.3
113.9
65.7
53.4
38.8
38.3
68.2
102.8

124.1
69.2
97.5
121.1

83.8
55.6
33.4
36.8
52.2

86.2

107.8

1 Data from Bureau of Labor Statistics trend-of-employment and pay-rolls series.
2 1923-25=100.

Wide seasonal fluctuations have been characteristic of the industry
almost since its infancy. Prior to 1935 there was usually a long and
severe drop in employment during the autumn, and some attempts
were made to devise schemes for rotation of industrial and agricultural
employment to take up this slack. In 1935, the date for releasing new
models was shifted from winter to fall. As a result, the single and
severe seasonal slump was replaced by two more moderate contrac­
tions, one in August and another about the first of the year. Another
advance in the model date in 1939 again shifted the period of low
employment and distributed the slack season between July and August.
Instability of employment in the motor-vehicle industry prior to
1940 is also apparent from an analysis of labor turn-over. For every
year during the period 1931-39, the separation rates in both the auto­
mobile and the automotive-parts divisions of the industry were almost
twice as high as those for all manufacturing industries. In 1934,
there were no less than 117.3 separations for each 100 wage earners
on the average pay roll during the year. About three-fourths of these
separations were lay-offs. Discharge and quit rates in the motor
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Monthly Labor Review—February 1942

290

vehicle industry were not greatly in excess of those for manufacturing
industries as a whole. As might be expected, accession (hiring) rates
were also high— 1% to 2 times those for all manufacturing industries.
Increased employment and the development of trade-union organiza­
tion were reflected in significantly lower turn-over rates during 1940.
T able 4.—Employment and Pay-Roll Indexes in Motor-Vehicle Industry, by Months,

January 1935 to September 1941 1

Year and month

Employ­
ment
index 2

Pay-roll
index 2
82.6
98.8
100.9
104.9
94.1
83.7
76.8
72.2
64.6
87.5
104.5
103.8

1935: January.. ___________
February
March - _
. _ _.
April
___ ____ - -May - __ ____ ____
June
— ____
Ju ly ________________
August
September
October
___ _
November
December

109.6
119.1

1936: January. ___ . ____
February _.
March
_ _ __ . . .
April
M ay ___ .
June . . ________ ...
J u ly .____ __________
August. . .
__
September
. . .
October .. . .. .. .
November
December

117.8
113.5
115.3
116.9
115. 5
110.7
97.6
89.6
109.8
128. 5
139.2

no. i
112.2

1937: January
February.. . . . . . . . .
March_____ . . .
April____ . . _____ .
M ay _________ . ...
June . .. . . . . _____
July________________
A u g u s t_____
___
September . . . .
..
October
. .
November
..............
December. . . . . .

125.3
127.3
131.8
136.5
140.4
138.2
131.0
119.1

108.8
122.7
133.6
137.3
145.5
136.6
124.9
116.5
106.0
139.3
126.9
91.5

1938: January__ . . . . . . ..
February. . . . . _____
M arch.............................
April_________ ___ ..
M ay . . . . . ___ ..
June_______________

121.1

121.5
118.0
108. 7
102.0

96. 4
85.1
106.4
117.1
119.7

112.2

112.2

134.0
133.5
110.5
84.7
82.1
79.3
72.9
68.6

61.5

96.2
84.3
95.0
108.3
100.4
83.6
77.4
102.1

127.2
137.2

64.4
62.7
62.3
63.3
56.8
54.4

Year and month

Employ­ Pay-roll
ment
index 2 index 2

1938: July________________
August_____ _ _ __
September___ - _ _
October__________ _..
November.. . . . - ___
December _________

53.1
48.0
64.9
86.3
101.9
106.8

47.4
47.0
66.3
91.3
107. 6
107.4

1939: January. .. ______
February.. - ______
March____ - ___ ...
A p r il_________ ___
M ay... ____
. .. .
June_____ __________
July________________
August______ . . . __
September____ _____
October _. . ___ ____
November .. . ____
December____
____

106.1
104.4
103.8

101.3
97.3
97.0
99.5

1940: January__ __________
February - - - - - - - - - March . . . ____ . . .
April___
___ _____
M ay__________ .
June_______________
July ______________
August . - ______ ...
Septem ber__________
October . . . . . _______
November
- . . . ..
December _______ ..

115.8
113.1
114.4

112.2

125.1
129.8
130.2

80.5
96.1
125.1
149.2
150.5
145.0

1941: January_____ ____ _
February. ...................
March . . . . .........
April________
M a y ____ _______ ___
June__ _____________
July ................... ...
August_______ ____ .
Septem ber__ ______
October.. . . _ __
November__ ______

128.5
130.1
131.5
132.4
134.1
134.8
126. 9
109.3
123.4
2128. 9
2129.7

147.7
159.6
163.1
147.3
170.6
188.3
158.0
137.3
158.9
2176. 6
2175.8

101.8

93.3
91.6
76.4
70.4
98.7
107.8
102.3
118.1

112.0

109.8
104.9
82.3
85.5

88.0
88.6

72.9
75.0
102.9
113.3
106.0
127.9
119.9
119.1
122.9

121.2
111.1
112.0

1 Data from Bureau of Labor Statistics trend-of-employment and pay-roll series.
21923-25=100.
* Preliminary.

Aggregate pay rolls in the motor-vehicle industry have fluctuated
in close harmony with changes in employment. The annual index of
pay rolls reached the lowest point since 1923 in the year 1933 when
the index reached a level of 38.3 (1923-25=100.0) and the estimated
average weekly pay roll fell to $4,800,000. In the relatively good
years of 1928, 1929, 1936, and 1937, both employment and pay rolls
were greater than in the base period, 1923-25. In 1937, however,
employment had advanced farther beyond the 1923-25 level than had

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Wage Structure of Motor-Vehicle Industry

291

pay rolls. Since August 1939 the reverse has been the case; pay rolls
have been at a higher level, as compared with the 1923-25 period,
than has employment except during 1 month (July 1940). A high
level of pay rolls occurred in June 1941 when the index rose to 188.3
and weekly pay rolls amounted to $23,800,000. The extremely rapid
growth of motor-vehicle pay rolls can be seen by comparison with the
year 1904 when an average of about 12,000 wage earners were paid a
total of less than $140,000 per week.
AVERAGE HOURLY EARNINGS

The level of average hourly earnings in the motor-vehicle industry
has been relatively high almost from its beginning. Average hourly
earnings in this industry have been roughly a fifth to a third above
those in the durable-goods industries as a whole during the entire
period for which comparable figures are available; in 1938 the differ­
ence was a third (table 5). The substantial increase in earnings during
1937 in part reflects the result of the trend toward unionization.
Between the period of this survey (May-June 1940) and November
1941, average hourly earnings in the industry rose 16.5 cents, or 17.4
percent. Changes in wage rates made during the last half of 1940
were not sufficiently important to cause any appreciable change in
the average for the industry; the figure of 95.4 cents for December
1940 is, in fact, identical with that for the preceding June.
A rise of 1.5 cents between December 1940 and January 1941 and
another of 0.5 cent in February reflect the first important change in
a series which resulted from the terms of new union agreements
effected during the first half of 1941. Data submitted to the Bureau
by manufacturers indicate that somewhat more than 80,000 wage
earners, or virtually all the employees of the companies reporting
wage increases, were affected. The information available shows a
flat increase of 2 cents per hour granted by the Chrysler Corporation,7
a raise of 5 percent in the plants of two moderately large companies,
and adjustments varying from 2 to 10 percent in several smaller firms.
Except in a few of the smallest establishments, all wage earners in
these plants were affected in a relatively uniform manner.
The later wage adjustments made during March and April 1941
were restricted principally to the smaller concerns. The increases
varied from 4 to 18 percent, and, according to available reports, less
than 10,000 workers were involved. With minor exceptions, the
increases applied to all wage earners in the plants reporting changes.
The relative unimportance of changes in these 2 months is indicated
by the over-all figures on average hourly earnings which show an
increase of less than 1 cent between February and April.
7 Effective during the latter part of December.

438471— 42------ 2


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292

Monthly Labor Review—February 1942

T able 5. —Average Hourly Earnings, Weekly Hours, and Weekly Earnings in Motor

Vehicle and Durable-Goods Manufacture, 1922-41
Average hourly earn­
ings (in cents)
Year and month

Motorvehicle
industry

Durablegoods
manufac­
ture

1922______________________
1925______________________
1928______________________
1930______________________
1932______________________
1933______________________
1934_____________________
1935___ '__________________
1936______________________
1937______________________

165.7
i 72.3
1 75.0
1 72.4

1938___ __________________
January_______________
February______________
March___________
__
April_________________
M ay__________________
June.
_ __- _ _____
Ju ly ---------------------------August________________
September____________ i
October_________ _____
November. __ _ _ ___ __
December_________ ____

92.5
91.5
91.6
91.9
92.0
92.0
92.5
93.0
93.6
93.3
92.8
93.2
92.4

69.8
70.5
70.2
70.2
70.1
69.9
69.6

1939______________________
January_______________
February__________ ___
March_________ ___ ___
April____ ________ _
M ay_____ ___________
June____ -__ ________
July---------------------------August_______________
September_____ ______
October_______________
November _ _ _______
December_________ ____

(2)
(2)
(2)
(2)
50.8
48.5
56.7
58.7
59.7

Average hours worked
per week
Motorvehicle
industry

Durablegoods
manufac­
ture

Average weekly earn­
ings
Motorvehicle
industry

Durablegoods
manufac­
ture

(2)
(2)
146.9
i 34.5
31.3
35.2
33.3
37.1
38.5
35.9

(2)
(2)
(2)
(2)
32.5
34.7
33.7
37.1
40.8
39.8

(2)
(2)
i $35.14
i 25.01
21.27
20.96
23.31
27.41
29. 75
31.94

(2)
(2)
(2)
(2)
$17.66
17.80
19.81
22. 72
25.24
28.09

68.5
69.0
69.6
70.6
70.9

32.9
27.6
27.7
28.4
31.4
30.0
31.9
31.8
34.6
36.3
37.7
37.5
36.0

34.8
32.2
33.0
33.6
33.5
33.8
33.9
33.4
35.8
36.4
37.5
36.7
37.1

30.45
25.27
25.34
26.10
28.83
27. 65
29.49
29. 56
32. 33
33.81
34.98
34.89
33.22

24.77
22.90
23.42
23.69
23. 80
23.93
23. 86
23.32
24. 84
25.65
26.86
27.02
27.27

■v_92.9
92.1
92.4
92.6
92.8
93.1
93.3
92.8
93.5
93.4
92.2
92.2
94.0

71.0
71.0
70.9
71.1
71.0
70.7
70.8
70.2
69.9
70.9
71.3
71.5
72.7

35.5
34.3
33.3
33.3
34.9
33.5
34.3
34.0
37.7
36.9
37.7
37.2
38.1

37.8
36.136.6
36.8
36.6
36.9
37.4
36.2
38.4
38.2
40.1
39.6
39.6

- 32.90
31.55
30.80
30.87
32.33
31.18
31.94
31.50
35.15
34.41
34. 75
34.25
35.81

27.83
26.53
26. 78
27.02
26.92
26.82
27. 26
26.31
27.92
28.15
29. 71
29.41
30.04

1940..........................................
January_______________
February. _ ___________
March______________
April_________________
M ay__________________
June__________________
Ju ly __________________
August______ ________
September_____________
October _____ __ ___
November . . . _______ _
December__________ ___

94.9
93.4
93.8
94.4
94.5
94.7
95.4
94.9
95.6
95.0
95.1
95.7
95.4

73.4
72.7
72.6
72.8
72.9
73.0
73.2
72.7
73.1
73.7
73.9
74.4
74.9

37.9
36.7
37.1
37.7
37.9
35.4
37.0
34.0
38.8
38.6
41.3
39.9
38.5

39.2
38.1
37.9
38.3
38.2
38.2
38.7
37.9
39.7
40.2
41.0
40.2
41.2

35.88
34.28
34.80
35. 53
35.78
33.47
35. 28
32.26
37.13
36.67
39.24
38.11
36.54

29.88
28.96
28.60
28.90
28.92
28.80
29.48
28.52
29.98
30. 57
31.42
31.11
31.96

1941:
January______________ _
February____ ________
M arch___ _ _ _______
April _______________
M ay__________________
June__________________
July__________________
A u g u st.-..-- _________
Septem ber... . . . ____ .
October_______________
November__ _ ___ _

96.9
97.4
98.2
98.3
101.4
106.3
106.6
105.7
108.5
3109.1

75.8
76.2
76.8
78.5
80.6
82.2
82.6
83.0
84.3
3 85. 3
386.5

38.9
41.1
41.4
37.0
41.0
43.0
38.3
39.0
38.7
340.7
3 39.3

40.6
41.6
42.0
41.5
42.5
43.1
41.5
42.6
42.3
342.9
341.8

37.66
40.06
40.61
36. 36
41.56
45.70
40.79
41.14
42.20
344. 32
3 43.84

31.93
32. 90
33.49
33.54
35. 57
36.90
35.84
36. 52
36. 79
337.96
337.64

68.0

59.3
70.0
73.9
77.4
89.1

3111.6

68.6

68.8

1 Data from special studies of the industry and based on a specific pay-roll period rather than on regular
monthly reports.
2 Data not available.
3 Preliminary.


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293

Major changes in wage rates resulted from the agreements con­
cluded between the union and the principal manufacturers during
May and June. In general, the increases amounted to about 10
percent and more than 300,000 workers were affected. The great
majority of the adjustments were in the form of blanket increases.
Typical of the adjustments were the 10-cent raise granted to the
160,000 employees of 61 General Motors plants, 8 cents to the em­
ployees of Hudson, Packard, Briggs, and Chrysler,8 and similar in­
creases in a large number of smaller companies. The Ford Motor
Co. made adjustments varying from 5 to 15 cents. The Ford adjust­
ments involved increases for about 53,000 wage earners, and were
effected over a period of several months. These industry-wide
changes resulted in sharp rises in average hourly earnings which
reached $1,014 in May and $1,063 in June. It should be noted,
however, that these general averages were also affected by extra
earnings at overtime rates. Wage adjustments made in July were
limited to relatively few of the smaller companies, and the increase
in the industry’s average hourly rate amounted to only 0.3 cent.
On the basis of the above discussion it is apparent that the descrip­
tion of the wage structure outlined in this report is generally appli­
cable to the industry through July 1941; that is, to the end of the
1941 model year. While it is true that earnings have risen sharply,
the increase has affected some 80 to 90 percent of the industry’s wage
earners in a comparatively uniform fashion. The increases on an
occupational basis made to the remaining 10 to 20 percent introduce
only minor modifications in the wage structure; these were principally
of a sort which would tend to produce slightly greater uniformity of
earnings among certain semiskilled and skilled groups.
Employment in the industry declined sharply in August in con­
formity with the usual seasonal drop at the end of the model year.
The curtailment of normal output and the diversion of plant facilities
to defense production renders interpretation of data for September
and subsequent months difficult and inconclusive. It may be noted,
however, that the "normal” activities of the industry, for all practical
purposes, came to an end at the close of the 1941 model year. It is
probable that the upward trend in average hourly earnings, which
reached $1,085 in September, $1,091 in October, and $1,116 in Novem­
ber, is largely a result of defense activities. Further, it is certain that
the employment of the relatively large numbers of skilled workers
essential to reorganization and retooling of the industry for the pro­
duction of war material, together with increases in overtime and night
shifts, will continue to exert an upward pressure on the hourly rate
of earnings for some months to come.
8 In the case of the Chrysler Corporation, this was in addition to the earlier 2-cent increase noted above.


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Monthly Labor Review—February 1942
TREND OF EARNINGS BY OCCUPATION

Data on the earnings of individual occupational groups collected
in connection with the Bureau’s several special surveys of the industry
indicate considerable uniformity in the trend for various occupations.
The largest increases between earnings in 1922 and in 1940 are shown
for laborers, inspectors, and tool and die makers (table 6). There
appears to be little or no relationship between degree of skill and the
extent to which earnings rates have risen. It should be pointed out,
however, that these comparisons are subject to certain limitations.
Changes in technology and in the nature of the duties performed by
many occupational groups between 1922 and 1940 have greatly re­
duced the number of job categories which can be logically compared.
Although it is believed that the occupational groups selected have
remained reasonably comparable throughout the period, small differ­
ences should not, in general, be interpreted as significant.
T a b l e 6 . —Average Hourly Earnings of Males in 26 Selected Occupations in Automobile

Division, Motor-Vehicle Industry, in Specified Years
Occupation
Total in d u stry 8________________________
Assemblers, axle.____ ___________________
Assemblers, chassis and final_________ ____
Assemblers, motor and transmission___ ____
____
Crane operators _ ___ _
Cutters, cloth and leather.
____ ___
D iesetters.. ___ _________ ___ ___ ___
Dingmen______ , ______________________
Drop hammermen, forge shop.. __________
Forge shop workers, except hammermen. . ..
Gear cutters____________________________
Hardeners and annealers_______ _
Inspectors, testers, balancers, and straight­
eners_________ __ __________________
Laborers and stock handlers___ . . . _____
Lacquer and enamel rubbers________ ___
Machine operators, group 1 7______________
Machine operators, group 2 8____ ____ .
Metal finishers.
_ ___ _ _ _ _________
Millwrights_____________________ _____
Punch and press operators_________ _ _
Sanders and rough-stuff ru b b ers__________
Sewers and trim bench hands____ _ _ _ __
Sheet-metal machine operators and assem­
blers.___ ___________ _______________
Sprayers_______________________________
Tool and die makers_____________________
Welders and brazers, hand. . . . _
_ __ _
Welders, machine________ _ _______ _____

19221

1925 i

1928 i

1930 i

19321

1934

$0.662

$0. 729

$0. 756

$0. 733

$0. 638

$0. 730

$0.967

.675
.647
.661
(3)
(4)
(3)
(s)
.810
.698
.678
.676

.729
.694
.747
.726
.803
.797
1.037
.957
.753
.746
.725

.755
.758
.762
.707
.831
.849
1.128
.973
.735
.760
.749

.717
.681
.725
.673
.798
.819
.975
1.005
.782
.740
.720

.602
.570
.632
.658
.709
.741
.813
.800
.679
.623
.618

.694
.720
.745
.685
.857
.774
1.063
.871
.721
.778
.709

.971
.943
.960
.956
.982
1.055
1.248
1.165
1.006
.974
.975

«.611
.495
.659
.700
(3)
(3)
.715
(3)
<.650

.687
.570
.871
.727
.764
.851
(3)
.718
.843
.738

.725
.589
.841
.751
.792
.893
(3)
.746
.807
.793

.748
.589
.746
.713
.774
.738
.753
.717
.702
.734

.660
.575
.603
.634
.667
.633
.646
.591
.495

.724
.613
.841
.714
.754
.867
.719
.693
.723
.742

.977
.836
1.059
.954
.987
1.048
.983
.955

«. 656
.723
.769
(3)
(3)

.783
.850
.875
.810
.792

.807
.824
.919
.852
.789

.711
.733
.887
.757
.735

.574
.615
.785
.659
.622

.752
.783
.899
.787
.743

.688

1940

1.001
1.002

.949

1.011

1.194
1.028
.979

i Includes some workers in the automotive-parts division.
* Excludes office workers.
8 Averages not available.
4 Cutters, cloth and leather, included in sewers and trim bench hands.
8 Dingmen included with sheet-metal machine operators and assemblers.
• Straighteners were not included when computing the average for 1922.
7 Includes automatic lathe and screw, drill-press, and milling-machine operators.
8 Includes boring-machine, grinding-machine, nonautomatic-lathe, and planer and shaper operators.

AVERAGE WEEKLY HOURS

Average weekly hours in the motor-vehicle industry have tended
to be slightly below those for the durable-goods industries as a group.
In general, the differences in the two series are slight throughout the

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Wage Structure of Motor- Vehicle Industry

295

period for which comparable data are available (table 5). Hours in
the industry reached the high point of 43.0 in June 1941 but dropped
to 38.3 in the following month. As a rule seasonal changes do not
seem to have had any profound effect on the average hours of work.
Instead, the fluctuations have been in volume of employment. Aver­
age hours during May and June 1940, the period of the present survey,
were 35.4 and 37.0,9 respectively.
AVERAGE WEEKLY EARNINGS

Average weekly earnings in the motor-vehicle industry were above
those for the durable-goods industries as a whole for each year during
the period 1932-40 (table 5). The differences ranged from 14 to 23
percent and were somewhat smaller than the differences in average
hourly earnings because of the fact that the motor-vehicle industry
has in general worked fewer hours per week than have establishments
in the durable-goods industries. There are no outstanding deviations
from the general trend of the relationship between average weekly
earnings in the motor-vehicle industry and in the durable-goods indus­
tries except in April 1941 when the two averages were only $2.82
apart. Earnings in the motor-vehicle industry reached their highest
point ($45.70) in June 1941 as the result of the general wage increases
already referred to and also, presumably, because of considerable
amounts of overtime payments during that month.10
Earnings and Hours in the Automobile Division
AVERAGE HOURLY EARNINGS

Hourly earnings of the 322,941 workers in the 167 automobile plants
studied averaged 96.1 cents in May and June 1940 (table 7). The
earnings of half the workers were within 9 cents per hour of the general
average. Fewer than 5 percent of the workers earned below 72.5
cents an hour. This high concentration of earnings about the average
is characteristic of a high-wage industry in which the majority of the
workers are employed in the plants operated by a small number of
large firms and in which the great majority of the employees are paid
on a straight-time rather than a piece-rate basis.
Regional differences.—The five East North Central States, as noted
earlier, contain the great majority of the workers in the automobile
division of the industry; more than half the 167 plants and almost 85
percent of the workers studied were in this region. The hourly earn• The special-survey data show a slightly higher figure (37.2) because (1) the definition of the industry
as used in the survey differs slightly from th at used in the trend-of-employment and pay-roll series, and
(2) proportionately more parts plants (in which average hours are higher) than vehicle plants are included
in the survey sample as compared with the group of plants reporting monthly.
i« The figure of 43.0 hours per week for the industry as a whole involves an average of somewhat more than 3
.hours of overtime per week for each worker since the legal maximum of 40 hours was in effect.


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Monthly Labor Review—February 1942

296

ings average for this region was about 1.5 cents above that for the
country as a whole; Michigan, with more than a fourth of the auto­
mobile plants and almost three-fourths of the workers studied, showed
average hourly earnings of 98.5 cents. As might be expected, the
tendency for the earnings of individual workers to concentrate about
the general average is even more pronounced in Michigan than in the
country as a whole.
T able 7.—Percentage Distribution of Workers in Automobile Division, by Average

Hourly Earnings and Geographic Division, M ay-June 1940

Hourly earnings (in cents)

Under 37.5
37.5 and under 42.5_______
42.5 and under 47.5_______
47.5 and under 52.5_______
52.5 and under 57.5____ __
57.5 and under 62.5____
62.5 and under 67.5___ ____
67.5 and under 72.5_______
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 97.5_______
97.5 and under 102.5_______
102.5 and under 107.5______
107.5 and under 112.5______
112.5 and under 117.5______
117.5 and under 122.5_____
122.5 and under 127.5 ..........
127.5 and under 132.5______
122 and under 127.5
127 5 and nndpr 142 5
142 5 and under 152.5
152 5 and under lfi2 5
172 5 and over
Total................... ........

All
divi­
sions

New
Eng­
land
and
Middle Total
Atlan­
tic

0.2
.1
.1
.3
.5
.6
1.0
1.4
4.9
7.4
10.4
14.8
12.3
16.7
10.8
6.9
5.0
2.5
1.2
.8

0.3
.5
.4
1.5
2.2
3.0
2.7
3.2
7.7
8.8
14.9
17.7
14.7
8.9
3.8
4.8
2.4
1.4
.5
.2

.5
.5

.1
.1

.7

m o

Number of workers_______ 322.941
167
Number of plants....... ..........
Average hourly earnings___ $0.961

Michi­
gan

Ohio

(2)
0.2
.9
1.3
1.9
3.4
3.3
4.1
5.1
8.9
6.8
10.6
12.4
15.7
10.5
5.7
3.5
2.2
1.8
1.1

West Other
Illinois North divi­
and
Central
sions 1
Indiana Wis­
consin

0.1
.2
.3
.4
.3
1.9
2.0
5.4
4.8
8.3
14.7
16.3
17.1
14.5
8.0
3.3
.8
.4
.3

0.1
.2
.2
1.0
1.1
1.5
1.0
1.5
8.4
5.7
10.6
10.7
16.6
23.8
9.0
5.1
1.8
.7
.4
.1

0.1
.2
.2
.5
1.0
.6
1.6
.9
7.9
9.2
14.9
12.8
8.5
18.5
9.6
6.4

3.4
1.3
1.1
.8
.9
.5
.6
1.0
7.4
8.9
15.3
14.0
16.5
13.0
9.0
3.9
1.4
.6
.2
.1

.8
.6
.6
.2
.1
.1

(«)
(2)
0.1
.1
.1
.5
.9
4.1
7.2
9.7
15.0
11.4
17.6
11.7
7.4
5.9
3.0
1.5
1.0
.9
.7
.7
.3
.1
.1

100.0

100.0

100.0

100.0

100.0

m o

100.0

29,712 271,151 229,845
89
45
30
$0.877 $0.977 $0.985

15,185
19
$0.920

15,399

10,722
15
$0.923

8,921

13,157
36
$0.876

.2

.2

.1
.1

(2)
(2)
0.1
.2
.2
.3
.8
1.2
4.4
7.1
9.5
14.6
12.0
17.7
11.7
7.3
5.5
2.7
1.4
.9

East North C entrai

(2)
100.0

.1
.3
(2)

.1
.1
.1
.1
.2

(2)

.3

.2

10

$0.950

5.6
1.2
.2
.1

.1

.1
.1
.2
.1

(2)
(2)
(2)

(2)
(2)

12

$0.908

1 Plants distributed as follows: Alabama, 2; California, 12; Colorado, 1; Georgia, 4; Kentucky, 3; Louisiana,
1; Mississippi, 1; North Carolina, 2; Oregon, 1; Tennessee, 1; Texas, 3; Utah, 1; Virginia, 2; Washington, 2.
2 Less than a tenth of 1 percent.

The number of plants and workers in areas other than the East
North Central States are, in general, too small to justify more than
broad generalizations concerning earnings. It should also be noted
that the automobile plants located outside of the principal area do not
comprise a homogeneous group. They are, rather, made up of two
types of establishments—the decentralized plants of large companies
and a group of firms, most of which are relatively small, producing
commercial bodies, trailers, and such equipment as busses, ambu­
lances, hearses, and fire engines. Substantial amounts of this work
are done on a special-order or custom basis. The wage structure in


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297

Wage Structure of Motor- Vehicle Industry

tlie outlying plants operated by the larger companies tends generally
to conform to that of similar plants located in the so-called automobile
States, and the level is, with a few exceptions, substantially higher
than that in the independent plants. This situation is reflected in
the distributions of workers by average hourly earnings in all areas
except the East North Central and is apparent in the minor peaks at
or near the lower ends of the distributions (table 7). It also explains
the close agreement between the average for the country as a whole
and those for the several regions, none of which varied from the general
average by more than 8.5 cents.
Plant averages.—The distribution of individual plants according to
the average hourly earnings of workers also reflects the fact that data
from a relatively small number of firms determine the statistical
characteristics of the wage structure of this industry. Almost half
the plants, which employed more than 85 percent of all the workers
studied, showed averages above 90 cents per hour. Almost twofifths of the workers were employed in the 29 plants in which hourly
earnings averaged $1.00 or more (table 8). Only 24 plants reported
hourly earnings of less than 60 cents. These establishments were
generally small, employing only about 75 workers on the average,
and the entire group of wage earners in these plants amounted to
scarcely more than a half of 1 percent of the workers surveyed in the
automobile division of the industry.
T a b l e 8 . —Distribution of Plants and Workers in Automobile Division, by Plant Average

Hourly Earnings, and Size of Operating Companies, M ay-June 1940
Companies employingAll companies
5,000 or more

Plant average hourly earnings (in cents)

Less than 5,000

Number Number Number Number Number Number
of
of
of
of
of
of
plants
workers
workers
plants
workers
plants
All plants.___ ______ ____ ________
Under 40.
40 and under 45
45 and under 50
50 and under 55
55 and under 60

. _ ____ ______
- - _______
__________ ____
_ _______

60 a n d u n d e r 65
65 a n d u n d e r 70
70 a n d u n d e r 75

167

322,941

3
3
7
5

274
157
608

6

9
6

9
5

23
23
27
29

Average hourly earnings ..........................

$0.961

12

i Workers of 1 plant included in interval 95 cents to $1.


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301,481

210

627
1,160
1,162
1, 297
2,444
Ili 760
24,392
95,957
i 60,905
121,988

75 and under 80 ___ _____
80 and under 85______________________
85 and under 90____ ______ . . . ---- -90 and under 95______________________
95 and under 100_____________________
100 and over________________ _______

91

76

21,460

3
3
7
5

274
157
608

6

9
6

4
16
19
24
28

9,250
20, 306
92,959
56,978
121,988

$0.972

9
5
8
7

4
3

1

$0,825

210

627
1,160
1,162
1, 297
2,444
2, 510
4,086
2,998
3,927
0)

298

Monthly Labor Review—February 1942

Hourly earnings and size oj operating company.—Ninety-one of the
167 automobile and. body plants surveyed were operated by 11 com­
panies. These 91 plants employed about 93 percent of all the workers
in this division of the industry. Average hourly earnings for the
plants of the large companies, taken as a group, were 97.2 cents, or
1.1 cents above the figure for the entire automobile division. None
of these plants showed average earnings below 80 cents per hour.
More than 40 percent of all the workers employed by these companies
were in the 28 plants in which hourly earnings averaged $1 or above
(table 8).
By contrast, the 76 smaller companies, employing the remaining 7
percent of the workers, showed average hourly earnings of 82.5 cents—
14.7 cents below the figure for the large companies and 13.6 cents less
tlian the average for all automobile plants as a whole. Plant averages
for more than two-thirds of these establishments were below 80 cents
per hour; these, as might be expected, were the smaller plants em­
ploying on the average only about 150 workers each. Four of the
small companies showed average hourly earnings of 95 cents or more
and, of these, only one averaged above $1.00.
The concentration of management in this division of the industry
and its effect on wage policy tend to offset the influence of such factors
as size of community. The wage rates paid by the large companies
vary but slightly from area to area, and a tabulation of earnings by
size of community has little or no significance because its character­
istics are largely a reflection of the types of communities in which the
plants of the few large companies happen to be situated.
Hourly earnings and size oj plant.—The close correspondence be­
tween size of plant and level of earnings among automobile companies
is, of course, to be expected because of the concentration of manage­
ment within the industry. Of the 167 establishments, about threefifths (101) reported 500 or more employees each. These plants,
however, accounted for almost 98 percent of all the workers in the
automobile division of the industry (table 9). Nearly three-fourths
of the workers were employed in plants which averaged 2,500 or more
employees each. At the other end of the scale were 36 plants with
average employment of 100 or less, and this entire group contained
little more than a half of 1 percent of the workers. None of the units
with 2,500 or more workers showed average hourly earnings below 80
cents, and 14 plants, with a total of more than 105,000 workers, had
average hourly earnings in excess of $1.00. Again, by contrast, only
5 of the plants with 100 workers or less showed average hourly earn­
ings as high as 80 cents; the combined employment of the 5 small
plants was only 223.


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299

Wage Structure of Motor-Vehicle Industry

T able 9.—-Distribution of Plants in Automobile Division, by Plant Average Hourly

Earnings and Size of Plant, M ay-June 1940
Size of plant in terms of number of workers

Total
Plant average hourly
earnings (in cents)

35 and under 40
40 and under 45
45 and under 50
50 and under 55
55 and under 60
60 and under 65
65 and under 70
70 and under 75
75 and under 80
80 and under 85
85 and under 90
90 and under 95
95 and under 100
100 and under 105
105 and over .

Em­
ployees Plants
274
157
608
210

627
1,160
1,162
1 297
2,444
11,760
24, 392
95,957
59| 988
112, 869
10,036

Number of plants__
Number of employees_____ 322,941

3
3
7
5

6

9
6

9
5
12

23
23
27
23

Under
51
1
1

3
4
4
3
2
2
1
2

l

51-100 101-250 251-500

2
2
2
1
1
1
1
2

24
801

12

942

2,500

2,501
and
over

2
2

4
3
5

4
2

1
1
1
1
2
1
1
1

6

167

1,001-

5011,000

22

3,687

8

2,897

1

3
8

9
8

1
1

7
8
10

2
2

4
8

4
3

13

2

37
27, 304

34
52,768

30
234,542

5

1

Occupational differentials among male workers.—More than threefourths of the male workers in the automobile and body plants studied
were employed in production departments; average hourly earnings
for this group were 95.5 cents or 1.2 cents below the average for all
males in this division of the industry (table 10). The average for
maintenance workers was only slightly (0.9 cent) below that for pro­
duction employees, while foundry occupations as a group showed earn­
ings 4.2 cents under the general average. Tool- and die-room workers,
with average earnings of $1,168 per hour were, of course, the highestpaid group. The highest average per hour for any single occupational
group was $1,416 for working foremen in tool and die rooms; except
for wages of helpers and apprentices, the lowest average per hour for
males was 77.2 cents for janitors. Within production departments,
the hourly earnings of males ranged from 81.5 cents for laborers to
$1,248 for dingmen. Despite this rather wide spread of 43.3 cents,
the earnings of male production workers offer striking evidence of the
concentration of individual earnings. The averages for 23 occupa­
tions, which included nearly half the total of 241,332 male production
workers, were within 3 cents of the general average of 95.5 cents for
the entire group.
More than a fourth of all the male workers were classified in the
28 occupational groups which showed average earnings of $1.00 or
more per hour. In addition to working foremen in tool and die and
in maintenance departments, seven occupational groups, with nearly
20,000 workers, had earnings in excess of $1.10 per hour. Included
in this total were dingmen ($1,248), drop-hammer operators ($1,165),
heaters in forge shops ($1,158), tool, die and lay-out inspectors


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Monthly Labor Review—February 1942

300

($1,208), tool and die makers ($1,194), other tool-room workers
($1,111), and pattern makers ($1,215). The 5,091 janitors with an
hourly average of 77.2 cents constituted the only male group (except
for apprentices) with earnings below the 80-cent level, and only six
additional occupations showed hourly averages less than 85 cents:
maintenance laborers (81.6 cents), miscellaneous service workers (83.9
cents), production-department laborers (81.5 cents), truckers and
material handlers (84.7 cents), male sewing-machine operators (83.8
cents), and watchmen (80.7 cents). These seven groups with earn­
ings of less than 85 cents an hour included about 37,000 male workers
or 11.5 percent of the total. It may he noted, however, that nearly
one-half of these 37,000 were truckers and material handlers whose
average earnings were within 3 mills of 85 cents.
T

able

10.—Average Hourly Earnings of Workers in Automobile Division, by Sex,
Occupation, and Geographic Division, M ay-June 1940

Occupation

Total

East North
Central

Other divisions

Aver­
age
Num ­ hourly
ber
earn­
ings

Aver­
age
Num ­ hourly
ber
earn­
ings

Aver­
age
Num­ hourly
ber
earn­
ings

M a les

All departm ents_____ _

______________ _____ 315,013

$0.967 263,651

$0.983

51,362

$0.882

241,332
1,623
19,399
7,130
2,810
958
22,725
663
1,130
1,245
4,549
1,699
582
1,242
635

.955 197,274
.971
1,509
.943 12,341
.960
6,838
.957
2, 501
.891
923
.941 16,040
1.011
649
.913
1,021
.913
964
.892
3,722
.956
1, 568
.982
561
1.055
1,184
1.248
536
1.021
912
1.165
1,238
1.095
2,386
.960
410
.942
670
.975
1,639
493
1.158
.891
1,640
1.208
679
.964
8,929
1.056
2, 515
.815
6,795
1.025
4,611
1.048
7,728
.963 27,384
.981
1,291
.941
7,843
.974
1,793
.994
5,852
.973
5,348
.953
1,079
3,061
.953
1,117
.905
.912 12,275
.859
1,748
.917
2,944
1.011
3,009

.970
.979
.961
.964
.974
.887
.967
1.013
.927
.913
.911
.973
.986
1.069
1.265
1.051
1.192

44,058
114
7,058
292
309
35
6,685
14
109
281
827
131

.885
.874
.911

Processing occupations__________________________
Assemblers, axle____________ ______ _ - ------Assemblers, chassis end final_________ _______
Assemblers, motor__________________________
Assemblers, sheet-metal, subassembly__________
Assemblers, small p arts.. _ ______________ ..
Assemblers and trimmers, body 1______________
Balancers__________________________________
Bench hands, machined parts_________________
Car loaders______ ________________ ______
Clerical workers, factory... __________________
Crane and hoist operators______ _______ ____
Cutters, cloth and leather____________________
Die setters________ . . . ___________________
Dingmen____________________________ ____
Door hangers. ____________________________
Drop-hammer operators ___________________
Foremen and lay-out men ___ ______________
Forge-shop workers, not elsewhere classified..__
Hardener and annealer helpers________________
Hardeners and annealers.. ______ ___________
Heaters, forge shop ___________ ____ ______
Helpers, processing occupations, n. e. c_________
Inspectors, tool, die, and lay-out______________
Inspectors, n. e. c. __________________________
Job setters, machine ____ . _ . . . . ________
Laborers, n. e. c ____________ . _____ _____
Leaders and relief workers.. _________________
M etal finishers__ . . . _____________ . . _____
Operators, machining processes_______________
Boring machines.. . ___ . . . . . . ____ _
Drill presses____________________________
Gear cutters____________________________
Grinding machines
____________________
Lathes, automatic and semiautomatic . ___
Lathes, hand__ . . . . . . _________ ____
Milling m achines.________________ _____
' - Miscellaneous machines, n. e. c . . . . _____
Other processing occupations, n. e. c___________
Packers and craters__________________________
Paint-shop workers, n. e. c___________________
Painters, spray-------- ----------------------------- -----See footnotes at end of table.


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1,220

1,320
3,163
459
714
1, 690
505
1,930
698
10,346
2,653
8,840
5,791
10,322
28,976
1,369
8,254
1,853
6,099
5,651
1,146
3,262
1,342
14,553
2, 634
4,011
4,489

1.122

.995
.951
.977
1.173
.956

1.210

.968
1.054
.845
1.034
1.081
.969
.985
.947
.977
.997
.977
.958
.960
.927
.921
.875
.942
1.040

21

- 58
99
308
82
777
49
44
51
12

290
19
1,417
138
2,045
1,180
2,594
1,592
78
411
60
247
303
67
201

225
2,278
886

1,067
1,480

.868

.825
(0

.880

0)

.788
.913
.811
.766
0)
.806
1.159
.931
.826
1.017
(>)
0)
.911
(»)
.528
(')
.938
1.104
.717
.992
.952
.867
.914
.831
.895
.930
.903
.860
.856
.798
.865
.830
.852
1 .952

301

Wage Structure of Motor-Vehicle Industry

T able 10.— Average Hourly Earnings of Workers in Automobile Division, by Sex,

Occupation, and Geographic Division, M ay—June 1940— Continued

Occupation

Processing occupations—Continued.
Platers__________ _______ ______ _________ Polishers and buffers, plating---- --------------------Polishers and rubbers, paint__________________
Punch and press operators---------------------- ------Repairmen, productive, n. e. c------------------Sanders and rough-stuff rubbers. . . ------------Sewing-machine operators . . --------- --------Sheet-metal machine operators, n. e. c--------------Straighteners_______________ __________ ____
Testers, car, final--------- ---------------- --------- Testers, motor and transmission______________
Trim bench h a n d s . -------- --------------------- . . .
Truckers, hand, and material handlers-------------Trackers, power (inside).------------------------------Welders and brazers, hand---------- .. .. . . . ---Welders and brazers, machine. ____________ ..
Tool- and die-room occupations---------------------------Foremen and leaders..----- ---------------------------Tool and die makers--------- ---------------------------Tool and die maker apprentices----------------------Tool-room workers, n. e. c— ------------ -----------Foundry occupations----------------- ------ ----------------Casting cleaners .
---- --------- -- -------------- Chippers and sandblasters.. _ ----- ---------------- Coremakers—.
--------------------------------Inspectors----------------------- ------------------------Molders__________ .. .. -------------------------- P atternm akers.. . ----------------------------------Skilled and semiskilled foundry workers, n. e. C—.
Unskilled foundry workers---- ---------------------Maintenance and service occupations---- ---------------Carpenters________________ . -----------------Electricians_________________ _____________
Foremen and leaders___
.. . -------- Helpers and apprentices---- ---------------------- -Janitors____________ ________ _____-,-----------Laborers, n. e. c ------- --------- --------- -------Repairmen, skilled-------------------------------------Repairmen, machine tools-------------- ---------Repairmen, other equipment--------------------Millwrights---------------------- ----------------------Pipe fitters________________ _______________
Semiskilled workers, n. e. c----------------------------Service workers, n. e. c------ .. ------------ Skilled workers, n. e. c—
----------------- -------Tool grinders and cutters----- . -------------- -- Truck drivers____________ _________ _____
W atchm en........................................ -.................. .

Total

East North
Central

Other divisions

Aver­
age
Num ­ hourly
ber
earn­
ings

Aver­
age
Num­ hourly
ber
earn­
ings

Aver­
age
Num­ hourly
ber
earn­
ings

449
771
2,478
13,259
5,182
4,089
802
1,803

432 $0,932
1.076
750
1.072
1,691
12,584
.963
4,133
1.045
1.046
2,936
654
.838
1,584
.961
1,061
.981
.962
583
1,146
.995
4,365
1.044
13,496
.858
.905
3,015
1.064
3,153
.988
7,329
1.197
17,197
1.430
1,543
12, 518 1.222
.794
1,613
1.139
1,523
.928
17,744
.911
1,487
.898
2,174
.964
2,300
.897
709
.976
1,526
1,222
411
.929
6,084
3,053
.868
.961
31,436
.974
591
1.046
2,426
1.152
1,673
.855
2,126
.778
4,207
.835
2,172
1.067
4,916
1.072
4,253
1.036
663
.998
2, 505
1.029
1,450
.954
1,051
.849
617
1.008
3,919
1.029
1,258
.910
1,154
.838
1,371

1,111

843
1,191
5,500
17,365
3,294
4,062
8,429
19, 210
1,639
13,920
1,809
1,842
18,018
1,505
2,210

2,323
726
1,555
422
6,142
3,135
36,453
692
2,801
1,953
2,322
5,091
2,486
5,525
4,804
721
2,841
1,663
1,271
713
4,560
1,353
1,310
1,872

$0.929
1.072
1.059
.955
1.028
1.001

.838
.935
.978
.949
.992
1.028
.847
.892
1.028
.979
1.168
1.416
1.194
.759

1.111

.925
.909
.895
.963
.891
.973
1.215
.928
.862
.946
.966
1.027
1.142
.850
.772
.816
1.055
1.059
1.031
.983
1.015
.936
.839
.997
1.019
.897
.807

17
21

787
675
1,049
1,153
148
219
50
260
45
1,135
3,869
279
909
1,100

2,013
96
1,402
196
319
274
18
36
23
17
29
11

58
82
5,017
101

375
280
196
884
314
609
551
58
336
213
220

96
641
95
156
501

0)
(')
$1.029
.812
. 959
.893
. 842
. 757
.917
.921
0)
.968
.810
• / 4lZ
.908
.924
.923
1.223
.948
. 501
.969
.762
(')
(')
(>)
(0

(>)
(')
.826
.640
.851
.921
. 910
1.080
.793
.747
.689
.956
. 954
. 97i
. 869
.923
.849
.773
• 925
.888

.805
.724

Fem ales

All departm ents........................ ......................................
Processing occupations---------------------------------........
Assemblers and trimmers, body 2------- . . . ------Clerical workers, factory-------------- -- - -- ----Inspectors, n. e. c--------- ------ ------------------------Laborers, n. e. c------ -------- . --------------------Other processing occupations, n. e. c------- -------Paint-shop workers, n. e. c---------------------------- Punch and press operators___________________
Sewing-machine operators-----------------------------Trim bench h a n d s ---------- --------- - - -------Truckers, hand, and material handlers— ■. . . .
Foundry occupations-----------------------------------------Skilled and semiskilled foundry workers, n. e. c ...
Unskilled foundry workers---------- -------------Service workers, n. e. c----------- ----------------------------

7,928
7,346
163
903
782

1 Workers too few to justify computation of an average.
2 Does not include body welders.


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122

208
222

405
179
207
2,137
1,880
138
451
168
283
131

.720
.722
.730
.719
.711
.644
.683
.692
.733
.737
.747
.744
.714
.673
.697
.736
.673
.704

7,500
6,937
163
903
643
109
204
219
364
172
179
2,120

1,724
137
439
156
283
124

.722
.724
. 730
.719
.716
.668

.687
.694
.734
.739
.754
.745
.714
.675
.698
.742
.673
.711

428
409
139
13
4
3
41
7
28
1/
156

.683
.685
.687
0)
0
0
0)
0
0)
0)

.710

1
12
12

0)
0
0

7

0

302

Monthly Labor Review—February 1942

Interpretation of the regional differences in the average hourly
earnings for the several occupational groups is subject to limitations
on the basis of certain complex factors, most of which have their
origin in the fundamental characteristics of the industry itself. As
pointed out earlier, the large automobile manufacturers operate plants
both within the East North Central States and in other areas, and
the differences in wage levels between the two groups of plants are,
in general, small.11 Within certain limits, therefore, it may be said
that the occupations which have substantial numbers of workers out­
side the “ automobile area” might be expected to show relatively small
regional differences in occupational earnings averages, principally be­
cause of the fact that the large companies employ some 90 percent
of all the workers. This is true in the case of inspectors, trim bench
hands, chassis and final assemblers, and paint polishers and rubbers,
in which groups the regional differences in occupational averages are
well within the general regional difference of 10.1 cents.
In certain other occupations this generalization does not apply; a
case in point is the tool-maker group in which the regional difference
is more than 27 cents. In this instance the large difference probably
reflects the fact that the outlying plants of the major companies are
engaged principally in assembly and other processes which do not
ordinarily involve the use of tool makers and certain other highly
skilled groups. Most of the independent plants, in which wage levels
tend to be lower, do, however, employ tool makers, and these smaller
establishments are relatively far more important outside the East
North Central States than they are within the automobile area. Thus,
the difference in average earnings in this case is probably a result of
the management structure of the industry to a much greater extent
than it is a reflection of any marked regional differences in wage
levels. Similar reasoning may be applied to certain other occupations,
such, for example, as punch and press operators.
This general situation may be illustrated further by reference to
the group of car loaders whose average hourly earnings are identical
for the two areas shown. It is likely that few, if any, of the smaller
independent plants have employees engaged exclusively in such work
and so designated on pay rolls. No regional difference in earnings
appears in this case, presumably because most, if not all, of the car
loaders included are employed in the plants of the large companies.
One additional factor is probably involved in these apparent regional
differences and may be illustrated by the fact that average earnings
for job setters in the East North Central States are 5 cents below
those outside this central automobile area. Job setters in the cen11 This comment relates, of course, only to similar establishments; most of the outlying plants of the large
companies are for assembly and distribution, and it is obviously illogical to compare earnings in these plants
with those in the central manufacturing plants in which the proportion of highly skilled workers and,
consequently, plant average earnings are higher.


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Wage Structure of Motor-Vehicle Industry

303

tral plants of the large companies are engaged principally in duties
connected with mass-production methods, and their work may in some
cases tend to be more standardized than would normally be true in
a small plant subject to frequent changes of set-up. Further, it is
likely that the job setter in a small plant will be expected to assume
additional duties as foreman or repairman, and his rate of pay will,
in consequence, tend to be higher. Since this is an occupation which
would not be common in outlying plants of the large manufacturers,
the explanation may well be based on this combination of circum­
stances rather than on any actual regional differences in wage levels
for a standardized job.
Female w o r k e r s The majority of the 7,928 female workers were
employed in the larger plants, and their average hourly earnings were
72.0 cents, or 24.7 cents below those for males. The earnings of half
the women employed were within 4 cents of the general average for
female workers. Small-parts assemblers, body assemblers and trim­
mers, sewing-machine operators, trim bench hands, and core-room
workers in foundries accounted for the great majority of the female
employees. The number of women in plants outside the East North
Central States is insufficient to provide an adequate basis for general­
ization.
WEEKLY HOURS

Full-time weekly hours.—Practically four-fifths (133) of the 167
vehicle and body plants studied were operating on an official 40-hour
week. Most of the remaining plants reported a standard week of
42 hours (the maximum normal week established at the time of the
survey under the Fair Labor Standards Act). Only four plants
showed a general workweek of less than 40 hours, and an equal num­
ber were scheduling a week of more than 42 hours. The 40-hour week
was found more frequently in the “automobile States” (the East
North Central region), where almost 90 percent of the plants were
on this schedule. This situation also results from the fact that most
of the establishments were operated by a few large companies. More
than three-fourths of the plants which scheduled more than 40 hours
of work per week were outside the automobile area, and none of the
four establishments reporting more than 42 hours were in the East
North Central region.
Actual weekly hours.—The 322,941 automobile-plant employees
studied worked an average of 36.8 hours per week in the pay-roll
period for which the data were collected (table 11). Variations in
the averages for the several regions are not large except in the case
of the West North Central States where the low average reflects a
slack period in several large body and assembly plants. It may be
noted that the average weekly hours in automobile plants were slightly


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Monthly Labor Review—February 1942

304

more than an hour below the figure for the parts plants studied.
This difference may be in part a result of the fact that the industry was
approaching the end of a model year, and any slight effect of the
seasonal dip would naturally be more apparent in automobile plants
than in parts plants.
AVERAGE WEEKLY EARNINGS

The management structure and regional distribution of the auto­
mobile division of the industry are reflected in the data on weekly
earnings as in the case of the other wage data. The average of $35.91
for the 271,151 workers in the East North Central States and the
Michigan rate of $36.09 are slightly higher than the figure ($35.42)
for the country as a whole. As in the case of weekly hours, the
average of weekly earnings in the West North Central States is
affected by the short workweeks in several large plants. The varia­
tions in average weekly earnings between regions would, of course,
be greater were it not for the fact that the data from decentralized
plants of the large companies carry sufficient weight virtually to
eliminate the influence of the relatively lower earnings rates obtain­
ing in the independent plants.
T able 11.—Average Hourly Earnings, Weekly Hours, and Weekly Earnings of Workers

in Automobile Division, by Geographic Division, M ay-June 1940

Geographic division

Number of
workers

Average
hourly
earnings

Average
weekly
hours

Average
weekly
earnings

All geographic divisions_________ _______________

322, 941

$0.961

36.8

$35.42

New England and Middle Atlantic________________
East North Central______________________________
Michigan__ _____ ______
Ohio____________________ ___________ ______
Indiana_________ ________ _____ _ _____
Illinois and Wisconsin. _____________________
West North Central______ ______ _ . . __________
Other divisions.. _____ ________________ _ _____

29, 712
271,151
229, 845
15,185
15, 399
10, 722
8, 921
13,157

.877
.977
.985
.920
.950
.923
.908
.876

38.9
36.8
36.6
38.4
36.6
37.6
31.5
37.2

34.12
35.91
36.09
35.32
34.73
34. 68
28.64
32.62


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PROGRAM OF THE INTERNATIONAL LABOR
ORGANIZATION
B y C a r te r G oodrich 1

THE 1941 Conference of the International Labor Organization, held
at New York and Washington, served to focus opinion on the social
issues of the war and on preparation for the social and economic prob­
lems of reconstruction. Its importance and the program of future
action it laid down for the I. L. O. warrant a more extensive report
than the summary article on the Conference in the December 1941
issue of the Monthly Labor Review.2
As the earlier article pointed out, this was the second full Confer­
ence of the I. L. O. to be held in the United States. When President
Roosevelt met the delegates in the closing session at the White House,
he reminded them that, as Assistant Secretary of the Navy, he had
helped make the preparations for the first I. L. O. Conference in Wash­
ington in 1919. He recalled to them, also, how wild a dream it had
then seemed that governments should get together to raise the stand­
ards of living on an international plane. “ Wilder still,” he said, “ was
the idea that the people who were directly affected—the workers
and the employers of the various countries—should have a hand with
government in determining these labor standards.”
The Secretary of Labor, who was elected President of the Confer­
ence, drew a significant contrast between the two occasions: “ As a
citizen of the United States, I see one great difference between this
conference in 1941 and that held first in 1919. At both Conferences,
the nations of the world gathered together, dedicated in their purpose
to build a better world. In 1919 the United States was not there.
Today we stand shoulder to shoulder with the free nations of the
world.”
The importance of the 1941 Conference was attested by the repre­
sentativeness and distinction of the delegations which attended. In
spite of the difficulties and dangers of travel, and in spite of the world’s
preoccupation with the day-to-day events of the war, no less than
35 nations were officially represented.3 Twenty-two of the delega­
tions included workers’ and employers’ delegates. Among those
participating in the Conference were 17 members of cabinets and
ministries, including C. R. Attlee, member of the British War Cabinet,
the foreign ministers of Belgium and Czechoslovakia, and nine
1 Mr. Goodrich is United States Labor Commissioner at Geneva, and chairman of the Governing Body
of the International Labor Office.
2 The final record of the Conference was published by the International Labor Office in Ianuary 1942. The
January issue of the International Labor Review contained an article on the Conference entitled, “ The
Social Objective in Wartime and World Reconstruction.”
3 Thirty-three States, members of the Organization, sent delegates; another member, Thailand, was
represented by an observer. Costa Rica, which is not a member, also sent an observer.


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305

306

Monthly Labor Review—February 1942

ministers of labor or social welfare. Other prominent government
delegates were Paul van Zeeland, former Prime Minister of Belgium,
and Carl J. Hambro, President of the Norwegian Storting.
The employers’ group included the director of the British Employers’
Confederation, the president of the Associated Chambers of Manufac­
turers of Australia, the president of the New Zealand Employers’
Federation, and a past president of the Canadian Manufacturers’
Association, as well as a past president and the present president of
the United States Chamber of Commerce. The workers’ group
included the secretary general of the International Federation of
Trade-Unions; the presidents of the Australasian Council of TradeUnions, the Canadian Trades and Labor Congress, and the Chinese
Association of Labor; the secretaries of the Confederations of Labor
of the Argentine and of Chile, and of the South African Trades
Council; and three members of the general council of the Trades
Union Congress, as well as officials of unions affiliated with the Ameri­
can Federation of Labor and with the Congress of Industrial Organ­
izations.4
Democratic Solidarity
The Conference was called “ in the belief that social justice and
social security and the basic elements of economic democracy are
not luxuries to be thought of only when the stern business of fighting
is settled, but that they are, instead, the essence of the conflict and
the very stuff for which free men fight.” The meeting gave a remark­
able demonstration of democratic solidarity that foreshadowed the
prompt rallying of nations which a month later was to follow the Jap­
anese attack upon the United States.
The speech of Robert J. Watt, as United States workers’ delegate,
which opened the discussion on the Acting Director’s report, struck
4 The United States delegation was as follows:
G overnment delegates: Frances Perkins, Secretary of Labor; Adolf A. Berle, Jr., Assistant Secretary of
State. Substitute delegates: Carter Goodrich, United States Labor Commissioner at Geneva and chairman
of the Governing Body of the International Labor Office; Frieda S. Miller, Industrial Commissioner,
New York State Department of Labor. Advisers: Daniel W. Tracy, First Assistant Secretary of Labor;
Clara M. Beyer, Assistant Director, Division of Labor Standards, Department of Labor; A. Ford Hinrichs,
Acting Commissioner, Bureau of Labor Statistics, Department of Labor; Thomas C. O’Brien, regional
counsel, Brotherhood of Railroad Trainmen; Theodore C. Achilles, foreign service officer, Department of
State.
E m ployers' delegate: Henry I. Harriman, chairman of the board, New England Power Association, and
member of the Governing Body of the International Labor Office. Advisers: Clarence G. M cDavitt,
retired vice president of New England Telephone & Telegraph Co.; Albert W. Hawkes, president, Chamber
of Commerce of the United States. Substitute advisers: Edward R. Stettinius, Jr., former chairman of
United States Steel Corporation, New York; Carl Adams, president, Air Reduction Corporation, New
York; A rthur Paul, Dexdale Hosiery Mills, Lansdale, Pa.
W orkers delegate: Robert J. W att, American Federation of Labor, member of the Governing Body of
the International Labor Office. Advisers: George Meany, secretary-treasurer, American Federation of
Labor; Frank Grillo, secretary-treasurer, United Rubber Workers of America. Substitute advisers:
George Harrison, president, Brotherhood of Railroad Clerks; Dorothy J, Bellanca, member, general execu­
tive board, Amalgamated Clothing Workers of America. Secretary of delegation: John S. Gambs, asso­
ciate professor of public welfare administration, Louisiana State University.


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the keynote of vigorous democratic opposition to the Nazi philosophy.
In the same morning, Henry I. Harriman, United States employers’
delegate, asked for a “ definite affirmative statement that it is the
duty of all liberty-loving people and the organizations which they
represent, such as the I. L. O., to take an affirmative part in winning
the war.” Particularly striking were the similar expressions made
by the government, employer, and worker representatives from a
number of the South American nations and the degree of sympathy
which developed between them and the representatives of the free
peoples that were already at war. The viewpoint of the latter was
summed up in Mr. Attlee’s statement that “ all planning for a world
of peace and social justice is just lost labor unless Hitlerism is de­
stroyed.” The delegates from the countries that had suffered inva­
sion were received with particular warmth, and one of the most
significant events which occurred during the meeting—though not
an act of the Conference itself—was the declaration of solidarity
adopted by the Government, employer, and worker delegates of
Czechoslovakia, Poland, Greece, and Yugoslavia, which was read
from the platform of the Conference.
This spirit was reflected in almost every speech made in the
Conference and found embodiment in its formal decisions. The
Conference adopted without dissenting voice a resolution submitted
by the United States delegation, which contained as the first sentence
in its preamble the statement: “ The victory of the free peoples in the
war against totalitarian aggression is an indispensable condition of
the attainment of the ideals of the International Labor Organization.”
Another resolution proposed by the Government delegates of Peru
and China endorsed the social and economic principles of the Atlantic
Charter, asked “ that the fullest use be made of the machinery and
experience of the International Labor Organization in giving effect
to these principles,” and pledged “ the full cooperation of the Inter­
national Labor Organization in their implementation.” Perhaps
even more striking was the fact that all the 22 workers’ delegates
joined in presenting a resolution, adopted by the Conference with one
abstention, which urged “ all free peoples to contribute to the uttermost
limit of their power for the victory of China, Great Britain, Russia,
and their Allies by supplying all the arms which their industry can
produce.”
Govemment-Employer-Worker Collaboration
A principal topic of discussion was that of methods of collaboration
among governments, workers’ organizations, and employers’ organi­
zations. On this the Office had prepared a series of reports of which
the most notable was that on “ Wartime Developments in Govern438471— 42------ 3


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Monthly Labor Review—February 1942

ment-Employer-Worker Collaboration.” The Conference considered
this question in a committee of the whole house. In its discussions,
the delegates exchanged experiences in organizing such cooperation
and indicated their feeling of its importance.
One of the most effective statements was that made by Sir John
Forbes Watson, British employers’ delegate, who cited two wartime
incidents in which he and the general secretary of the British Trades
Union Congress were principals:
When I last spoke from this platform a few days ago I told you how Sir Walter
Citrine and I—he for the workers and I for the employers—on a summer’s after­
noon, when our men were standing on Dunkirk Beach, put everything aside, and
said, Strikes and lock-outs shall be illegal while this war lasts and arbitration
shall be compulsory.” I told you then and I tell you again, we did not do that
lightheartedly. But I will tell you something else. Not so long ago, Sir Walter
Citrine and I jointly went up to see our Minister of Labor, Mr. Bevin, with a
joint proposal. Mr. Bevin is quick to recognize a new situation, and as we went
into the room and he shook hands with us, he said, smilingly, “I hope this isn’t
a conspiracy.” Sir Walter Citrine answered. He said, “No, Minister, it is not
a conspiracy: it is just an experiment in self-government.” You will be interested
to know that we got 90 percent of what we had jointly asked for.

The British workers’ delegate, Joseph Hallsworth, took a similar
attitude and stressed the importance of applying similar methods to the
problems of reconstruction.
Some of that fine spirit in which the various sections of the community had laid
aside their particular interests and had come together in defense of their common
interest, when confronted by the enemies of freedom, wTould surely remain when
the war was over.

Keen interest in the problem of collaboration was expressed by
delegates from every continent. Certain of the Latin American and
European delegates, indeed, were disappointed because time did not
permit the working out of a fully detailed program of methods of
collaboration; and it was the Mexican Minister of Labor, García Tellez,
who made one of the most comprehensive statements of the importance
of the question:
We must protect the right of the free association of workers and employers
for participation in economic, industrial, political, and social deliberations,
intended to coordinate programs of a national, continental or international
character. We must consider it fundamental to have them genuinely represented
in the study and execution of any program of national emergency. In the dis­
cussion of international agreements, commercial treaties and especially in draw­
ing up the future peace treaties, the participation of occupational groups repre­
senting the living forces of each country will be indispensable.

On the motion of Frieda S. Miller, substitute delegate for the United
States Government, the committee on collaboration appointed a
tripartite subcommittee to draft a set of declarations which were
adopted by the Conference. These statements took note of the fact
that methods of cooperation “vary with place, social pattern, prior

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experience, temperament, and custom,” as tlie Conference discussions
had indicated, but declared that real collaboration was possible
“ only within the framework of democratic policital institutions which
guarantee the freedom of association of workers and employers.”
In these resolutions the Conference recognized “ the universal and
permanent importance for all nations of effective collaboration be­
tween the public authorities and workers’ organizations and employ­
ers’ organizations,” and underlined the special importance of such
cooperation—
(a) during the present war, because the success of the military operations
largely depends on the result of the battle of production which will be won by
the democracies only by the complete collaboration between the workers and the
employers in the work of national defense;
(b) after victory, for the transition from war economy to peace economy and
for the economic and social reconstruction of the world, which will be of interest
to all countries, belligerent and neutral, and which will call for a gigantic and
coordinated effort on the part of the public authorities, workers, and employers.

On motion of a group of workers’ representatives, which included
Robert Watt, Frank Grillo of the United Rubber Workers, and
Dorothy Bellanca of the Amalgamated Clothing Workers, the Con­
ference also adopted a resolution recommending that—
In agencies set up by public authority which include among their functions the
planning and application of public policies which directly or indirectly affect the
interest of workers and employers, the policy-making and administrative agencies
should include representative and responsible spokesmen of workers, and employers
acting jointly with their governments.

"The American Resolution

’

The central decision of the Conference was the adoption of a com­
prehensive resolution on the function of the I. L. O. in post-war
reconstruction, the full text of which appears on pages 1449 and 1450
of the December Review. This was frequently referred to by dele­
gates as “ The American Resolution.” In fact, however, it repre­
sented much more than the proposal of a single delegation, and this
was made clear by the United States Government representative who
moved its adoption:
This resolution began as the proposal of the Government, employer, and worker
delegates of the United States of America. It has become much more. It
has grown by accretion. Its way has been cleared by the withdrawal of certain
other resolutions. * * * The declaration has been strengthened, not
weakened, as it has gone through the committee process.
On the motion of the workers’ group, the resolutions committee added a request
for representation at any peace or reconstruction conference at the end of the war.
In this statement I should construe the word ‘'represented” not in the strict
diplomatic sense and usage, and not as prejudging the particular form of possible
participation, but as expressing our conviction that the voice of the International


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Monthly Labor Review—February 1942

Labor Organization should be heard in the most effective way that it is possible
to find in the great decisions that will follow the war.
What this resolution attempts to do is to set down certain points on which
the will of this Conference has seemed to grow clearer and more definite with each
day’s discussions.

The resolution declared that immediate action must be ready at the
close of the war “for the feeding of peoples in need, for the recon­
struction of the devastated countries, for the provision and transpor­
tation of raw materials and capital equipment necessary for the
restoration of economic activity, for the reopening of trade outlets,
for the resettlement of workers and their families under circumstances
in which they can work in freedom and security and hope, for the
changing over of industry to the needs of peace, for the maintenance
of employment, and for the raising of standards of living throughout
the world.”
This was described by Miss Perkins as “the kind of objective and
the kind of program which unite the American people. * * * It is
a point of view which farmers and housewives, and business men, and
professional people, as well as workers and employers, will find possible
to accept and adopt as their own.”
After noting that the accomplishment of these purposes will require
international collaboration and will set administrative tasks of great
difficulty, the resolution declared that the I. L. O. is “particularly
fitted to take part in this work in such a way as to minimize mis­
understanding and unrest” because it “possesses the confidence of the
free peoples and includes in its structure the representatives of
workers and employers.” For these reasons the resolution asked the
Governing Body to call the attention of the member governments to
the desirability of “associating” the I. L. O. “with the planning and
application of measures of reconstruction” and with the work of “any
peace or reconstruction conference following the war.” It recom­
mended that those governments which had not already done so, should
create their own agencies for the study of post-war social and economic
needs. It asked the Governing Body to form from its own member­
ship a small tripartite committee to study and prepare post-war
measures and recommended that this committee should enlist the
assistance of technically qualified experts and cooperate with govern­
mental, intergovernmental, and private agencies engaged in similar
studies. It asked that the work of the International Labor Office
and the program of subsequent conferences should be adapted to
serve these purposes “so that the International Labor Organization
shall be in a position to give authoritative expression to the social
objectives confided to it, in the rebuilding of a peaceful world.”


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Program oj International Labor Organization

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Textile and Matitime Resolutions
In addition to this general resolution, the Conference adopted other
reconstruction proposals relating to two specific industries of markedly
international character with which the I. L. O. has been particularly
concerned.
The first of these was textiles. On the proposal of John G. Winant
and under his chairmanship, the I. L. O. held a World Textile Con­
ference in Washington in the spring of 1937. This represented the
first occasion on which employers and workers of the textile industry,
as well as government representatives, had come together on an
international basis. For this meeting was prepared the first survey
of the industry as a world problem. At the time the war broke out,
steps were in process to create a permanent international committee
on which the various branches of the textile industries of the different
countries could be represented. In his report to the Conference, the
Acting Director, E. J. Phelan, suggested that such a committee might
be able to formulate and execute plans “for reconstruction of the
industry after the war.” 5
On the motion of the British workers’ delegate, the Conference
instructed the Office to prepare definite plans, to be “put into effect
with a minimum of delay after the termination of hostilities, for the
establishment under the aegis of the International Labor Organization
of a World Textile Office, based on the tripartite principle, to be
responsible for the international organization of economic and social
measures to secure prosperity and social justice in the textile
industry.”
Of all the international standards adopted by the International
Labor Organization, those which comprise “The Seamen’s Code”
represent the most comprehensive set of regulations and those of most
direct interest to the United States. Much of the success in this field
has been due to the work of the Joint Maritime Commission, composed
of employers and workers from the major maritime nations. At the
New York meeting the seamen of the allied nations were strongly
represented, and the Conference adopted with considerable enthusiasm
a resolution concerning the maritime industry. This referred to the
sacrifices and devotion to duty of seafarers during the war and declared
that “the international character of shipping will become even more
pronounced after the war than before.” It suggested the possibility
of including government representatives in the Joint Maritime Com­
mission and instructed the International Labor Office “to consult
all interested organizations, institutions, and individuals in order that
at the end of the war plans will be available for the immediate regula­
tion of economic and social conditions in the mercantile marine.
i Phelan, E. J.: The I. L. O. and Reconstruction, Montreal, 1941, p. 107. The survey referred to, which
was prepared by Lewis L. Lorwin, is The World Textile Industry: Economic and Social Problems (Report
to the Tripartite Technical Conference, Washington, April 1937).


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Mon thly Labor Review—February 1942

The First Steps
The reconstruction resolution was adopted by the Conference on
November 4. The next afternoon the Governing Body met to take the
first steps toward the carrying out of its purposes. The Conference
had asked the Governing Body to transmit the resolution to the govern­
ments “forthwith.” This was done, with the significant addition that
the program adopted would require the provision of a special supple­
mentary budget.6
The three regular United States members of the Governing Body,
Carter Goodrich, who is its chairman, Henry I. Harriman, and Robert
Watt, took part in this session. In addition, Isador Lubin acted as
substitute for Mr. Goodrich and Clarence G. McDavitt for Mr.
Harriman.
To provide for effective functioning through the war period, the
Governing Body, at the same meeting, chose from its own member­
ship an emergency committee to act for it between regular sessions.
A similar committee, chosen in February 1939, had done valuable
work in preparing the I. L. O. plans in advance of the war emergency,
and held two meetings in Geneva after the war broke out. The events
of the war, however, had made it extremely difficult for this group
to meet and impossible for several of its members to continue their
functions. A new committee was therefore chosen in such a way as
to make possible the holding of meetings either in London or in the
Americas.
The composition of the committee, consisting of six governments,
three employers, and three workers, is as follows:
Government Members
M em bers

United States of America
Canada
Great Britain
India
Mexico or Brazil or Chile 7
Netherlands 7

Substitutes

B razil7
Chile 7
China
Norway
Poland
Yugoslavia

6 At a previous meeting, held during the Conference, this ninetieth session of the Governing Body had
adopted the ordinary budget for 1942 of 4,224,000 Swiss francs. It had also confirmed Mr. Phelan in the
position of Acting Director, which he had assumed on February 15,1941, on the resignation of Mr. Winant.
In doing so, the Governing Body expressed “its high appreciation of the services rendered by Mr. Phelan
and its full confidence in his capacity” and entrusted him “with all the powers and responsibilities of the
Director.” Mr. Phelan was one of those who drafted the original constitution of the I. L. O. in 1919 and has
served in the Office since its inception.
7 I t was agreed th at the three Latin-American countries should serve in rotation in the order given. There
was a similar, though less formal, arrangem ent for rotation between Netherlands and the other governmentsin-exile in London.


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Employers' Members
M em bers

S ubstitutes

Sir John Forbes Watson, Great Britain Mr. Gemmili, South Africa
Mr. Harriman, U. S. A.
Mr. Erulkar, India
Mr. Oersted, Denmark
Mr. Lamuraglia, Argentine
Mr. Ling, China
Workers’ Members
M em bers

Mr. Hallsworth, Great Britain
Mr. Rens, Belgium
Mr. Watt, U. S. A.

S ubstitutes

Mr. Domenech, Argentine
Mr. Moore, Canada
Mr. Schevenels, Belgium

To this group the Governing Body entrusted its direct responsibility
for the planning of the I. L. O. reconstruction measures and for the
enlisting of expert assistance and cooperation with other govern­
mental, intergovernmental, and private agencies. It was agreed that
the first meeting of this committee should be held in London, and that
the first item on its agenda should be the work of the reconstruction
resolution.
At the present time the Acting Director and his staff are engaged in
the preliminary research and consultations necessary for the planning
of the reconstruction work. They will present definite proposals to
be acted upon at the London meeting, which is planned for the early
spring of 1942.
The Work Ahead
It is therefore too early to ask for the I. L. O.’s detailed plans for the
reconstruction period. The present is the period] of preliminary
planning. It is the stage at which the Office could be most helped by
suggestions from interested groups and individuals in the United
States and other countries.
Certain of the main lines are foreshadowed, however, by the past
work of the Organization and by the discussions in the Conference.
Clearly the I. L. O. will start from where it is. It has been concerned,
for example, with the efficient organization of the labor market. One
of the most useful of its wartime publications is the volume, 1‘Labor
Supply and National Defense,” which was prepared at the suggestion
of an informal joint conference of employers, workers, and government
officials of Canada and the United States. A more detailed study on
the transfer of labor as a wartime problem is now being prepared.
The reconstruction studies, which will be largely concerned with the
reverse of the wartime movement, will make use of the same methods
of analysis and the same knowledge of employment exchange machin­
ery in facing the urgent problems of transfer and retraining and guid­
ance that will be presented in the shift from war to peacetime pro­
duction .

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Monthly Labor Review—February 1942

The I. L. O. will be in a similar position to advise on the adaptation
of social-insurance systems to cushion the shocks of this transition.
The experts of the I. L. O staff, since their move to Montreal, have
rendered technical assistance on social-insurance problems to a
number of the nations of North and South America, and have taken
a large part in the formation of the Inter-American Committee to
Forward Social Security. More recently they have been invited to
advise the British Government on plans for a post-war revision of the
systems of social insurance and social assistance. Again, the I. L. O.
has by no means forgotten its permanent function of preparing
international labor standards for legislative adoption. An examina­
tion of what has been accomplished, and of the gaps which remain to
be filled when the work can be taken up again, has been made easier
by the publication, in 1941, of a volume arranging the substance of
the conventions and recommendations adopted by I. L. O. Conferences
under the orderly headings of an International Labor Code. At the
same time, its studies of workers’ nutrition and of workers’ housing
provide part of the basis for setting standards in a wider field.
For specific measures of reconstruction, the I. L. O. will be able to
make use of or adapt certain specialized organs created before the
war. One of these is the International Public Works Committee
which was organized to promote the coordination of public works
policies of the various nations. At its first meeting in the summer of
1938 it had drawn up “ a uniform plan” for the reporting of current
measures. A number of speakers in the Conference argued that
public works would necessarily play a larger part at the close of the
war, and the suggestion was made that this committee might be
reorganized to play a bolder role in organized international coopera­
tion in the investment field.
The I. L. O. also has a Permanent Committee on Migration for
Settlement which consists of representatives of both emigration
and immigration countries and also of countries that might take part
in the international financing of projects of settlement.8 A number
of delegates, and notably Mr. van Zeeland of Belgium and Mr. van
den Tempel of the Netherlands, pointed out that “ the uprooting of
populations” during the war has made more acute than ever the
problems with which this committee was organized to deal, and argued
that it should have a constructive part to play in a planned resumption
of migratory movements after the war. The willingness of certain
of the Latin American States to cooperate in its work was indicated
by the Chilean Minister of Labor, Pradeñas Muñoz, who declared
that the South American nations, understanding “ their historical
mission,” must “ open the doors to humanity and thus assist their own
8
The reconstruction resolution refers to the use of these two committees as well as of the Permanent
Agricultural Committee and the Joint Maritime Commission.


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peoples.” “There must not,” he said, “be any land without men and
certainly no men without land.”
The most significant new emphasis in the Conference discussions
was on the view that the I. L. O. should not limit itself to labor
questions narrowly defined but that it must face the central problems
of economic organization. The Czechoslovak Minister of Recon­
struction, Mr. Necas, declared that “ the International Labor Organi­
zation must become not only a world parliament of social policy but
also a world parliament of economic policy.”
Speaker after speaker declared that social and economic questions
“are bound together unbreakably,” that the central concern of
economic policy is the daily life of working folk, and that the solution
of the problems of labor requires a sounder economic organization.
The workers’ delegate who declared most vigorously that the masses
would refuse “once the war is over * * * to return to the miseries
of unemployment and social insecurity,” drew from this an argument
for the extension of the I. L. O.’s economic activities; and there was
general recognition that permanent increases in the standard of living
rested on the more effective utilization of the world’s resources.
It is no accident that the statement of purposes in the reconstruction
resolution included “the reopening of trade outlets” as well as “the
raising of standards of living throughout the world.” The intimate
and essential connection between the two points was pointed out by
many speakers. In her opening address, Miss Perkins stated it in
concrete terms:
We know that there is not enough cotton produced in the world for each human
being to have the equivalent of three shirts and a couple of pairs of overalls each
year. We know what we seem for a time to have forgotten, that there is not a
sufficient amount of food produced today to nourish the population on decent
world standards which nutritional experts would recognize as a minimum. * * *
Our problem in the post-war period will not be one of too-abundant resources.
Our problem will be that of finding some way to stretch existing resources and to
develop new ones to produce a more abundant life for the people who have suf­
fered the privations of war from Chungking to London. * * * It is incumbent
upon us, therefore, to plan in the post-war world, to reduce those barriers to trade
which have limited the economic life and comfort of the people of the world.
The world is rich, but every nation that must depend upon its own resources
alone is poor.

On this there was wide agreement. A Czech delegate who had
lived for some time under the Protectorate, told how autarchy blocks
honest enterprise, impoverishes the workers, and nullifies social reform.
From the other end of the world, a member of the New Zealand Labor
Government, Mr. Langstone, described “the expansion of trade” as.
“the key to world peace and higher standards of living.”
Delegates from China and India called attention to the increases
in world trade that would follow from the raising of the purchasing


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Monthly Labor Review—-February 1942

power of their masses. Speakers from Latin American countries
stressed the vital importance to them of trade relationships now and
in the future. The Argentine workers’ delegate, Mr. Domenech,
declaring that “the workers have always proclaimed the principle of
economic liberty,” welcomed the recent trade agreement between the
United States and Argentina. Representatives of several Latin
American countries called attention in temperate but forceful speeches
to the difficulties caused for their people by the current restrictions
on exports imposed by the United States. On the motion of the
Chilean delegation, the Conference adopted a resolution recognizing
that restrictions imposed upon export trade between certain American
countries unquestionably represent a danger for industry and trade,
which run the risk of being paralyzed with the consequence of causing
inevitable unemployment among large numbers of workers, creating
thereby a serious internal situation in the countries concerned.”
Representatives of the occupied countries urged the importance
of plans for immediate shipment at the close of the war of food and
raw materials to the regions in which economic activity will be at
a standstill because of physical devastation, lack of supplies, and
very likely the complete break-down of political and economic organi­
zation. “Not only the will but also the plans and the machinery,”
said a Norwegian worker, must be “ready when the war comes to an
end.” “Do not lose time,” warned a Czech employer. “Nobody
knows when this war will end. * * * An action like this must
be prepared in time.” The discussion did not stop with immediate
relief but went on to questions of long-run development. The thinking of the Conference linked together those European regions whose
economic equipment is being destroyed by the war with those parts
of the world whose resources have always been underdeveloped as
areas whose employment opportunities must be expanded by the
provision of the necessary capital. On this point Doctor Allende,
the Chilean Minister of Public Health, made the suggestion of a
policy of social loans, which he applied to Latin America but which
might also prove suggestive for European reconstruction:
We should adopt a new conception of economic relations. The smaller countries
have hitherto obtained loans of money for the development of particular industries
and for purposes of national defense. We think that such loans should be made
for raising the standard of living of the masses and for public health.

The Conference approached these and other questions with the
conviction, similar to that expressed in the Atlantic Charter, of the
fundamental necessity of “organized international cooperation.” To
this it added two other basic beliefs: first, that trade-unions and em­
ployers’ associations will have large contributions to make in the
work of reconstruction as well as in winning the war; and second,
that the I. L. O. itself, as the international agency through which

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workers and employers have learned to work, must prepare itself for
wider responsibilities than in the past. It must continue to serve by
the determination of labor standards and by technical assistance on
specific labor policies. It must act as spokesman for the social
objectives which, as President Roosevelt told the delegates, are “ the
goal beyond victory.” It must exert its influence in the support of
constructive economic policies which will make possible the attain­
ment of these objectives. Finally, it must be ready, after victory
and in association with other agencies, national and international, to
bring the experience and understanding developed in an organization
including industry and labor in many lands to bear in the application
of the urgent measures of restoration and reconstruction.
This is the work ahead. This is the field staked out by the Con­
ference and the challenge to future performance. In closing the final
session, the President of the United States reaffirmed both the claim
and the challenge:
In the planning of such international action, the I. L. O. with its representation
of labor and management, its technical knowledge and experience, will be an
invaluable instrument for peace. Your organization will have an essential part
to play in building up a stable international system of social justice for all peoples
everywhere. As part of you, the people of the United States are determined to
respond f ully to the opportunity and challenge of this historic responsibility.


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EFFECTS OF A M INIMUM WAGE IN THE COTTONGARMENT INDUSTRY, 1939-41 1
Summary
FEW displacements resulted from the introduction of the 30-cent and
32.5-cent minimum rates in the cotton-garment industry in 1939 and
1940, and most of the workers separated experienced little hardship
in accomplishing an occupational readjustment. The Bureau of
Labor Statistics’ study on which this conclusion is based covered 28
establishments in the industry, which in March 1939 employed 4,665
workers. Shortly before the effective date of the 30-cent minimum,
2,274 of these employees—most of them young woman piece workers—
earned less than 30 cents an hour.
The economic position of the industry was generally favorable
following the establishment of the minimum rates, and contributed
to the successful adjustment of employers and workers alike. Most
manufacturers, however, made little or no change in methods, organi­
zation, or policies. Only 13 of the 28 covered in the study raised
piece rates, although piece workers unable to attain the minimum by
means of their output were generally given “make-up.” In March
1941 the subminimum workers who had remained on the pay rolls of
the respective plants averaged 34 cents an hour.
Fully 702 of the subminimum workers, or 30.9 percent of the num­
ber employed in March 1939, were not on the pay roll 2 years later.
The proportion of separations among the subminimum workers, how­
ever, was little higher than that for workers (22.8 percent) who had
earned the minimum or more. Reports from workers interviewed by
the Bureau’s representatives, moreover, indicate that only about onesixth of the subminimum workers who were separated had been dis­
charged. An equal proportion had quit to take another job, and
about 1 out of every 7 had been forced to stop work on account of ill
health. Substantial numbers had resigned to get married or because
of pregnancy.
Many of the subminimum workers who were separated from the
pay roll dropped out of the labor market, and in July 1941 fewer than
half (47.0 percent) were employed or looking for a job. Most of those
who sought work experienced little unemployment and only 1 family
out of 20 received public assistance at any time during the 2-year
period studied. On July 1, 1941, a large proportion (43.7 percent)
of the separated workers who had obtained other jobs were working
1 By Robert J. Myers and Odis C. Clark of the Bureau of Labor Statistics, Division of Wage and Hour
Statistics. This study was made at the request of the Wage and Hour Division of the TJ. S. Department
of Labor. Additional material may be found in Serial No. R. 1415.

318


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Minimum Wage in Cotton-Garment Industry

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as apparel operatives. On the average, the reemployed workers
earned 37 cents an hour.
Subminimum workers who had been discharged fared less well than
those who had resigned or quit. Of the discharged workers who re­
mained in the labor market, almost one-fourth had failed to obtain
other jobs, after a year or more of unemployment. On July 1, 1941,
however, discharged workers who had found other work were earning
an average of 36 cents an hour.
Background of the Study
The effect of minimum-wage regulation on workers earning less
than the minimum has been the subject of much heated discussion.
By one view, the imposition of a minimum wage merely restores to
the worker, at the expense of parasitic management, an additional
part of the just reward for his labor. By another view, the establish­
ment of an effective minimum wage necessarily results in the unem­
ployment of large numbers of inefficient and low-paid workers, with a
consequent decline in the national income. Between these extremes
lie a score or more of theories and opinions, each hedged about by its
particular set of assumptions and supported by a more-or-less con­
scious social philosophy.
The present study, which describes the impact of the 30-cent
minimum on one low-wage industry, makes no attempt to harmonize
these divergent beliefs. Most persons interested in wage regulation
will agree, however, that the effect of a minimum wage will be greatly
influenced by such practical considerations as the height of the mini­
mum set, the extent of free competition in the industries affected, the
nature of the demand for the various products, the technological
position of the industries, the condition of the general labor market,
and so forth. Empirical studies, therefore, are of considerable im­
portance in revealing what circumstances are favorable to the suc­
cessful application of a minimum wage.
The Bureau’s study of the reaction to the minimum wage in the
cotton garment industry was directed primarily to four important
questions: (1) What action was taken by low-wage firms to offset the
influence of the minimum wage; (2) what was the experience of sub­
minimum workers retained in the industry; (3) to what extent and for
what reasons were the subminimum workers separated from the
industry after the effective date of the minimum wage; and (4) what
was the experience of the separated workers in making occupational
readjustment.
Characteristics of the Industry
The various branches of the cotton-garment industry are, as a
group, of considerable importance. Establishments engaged in the

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production of shirts and nightwear, work shirts, overalls, cotton
pants, washable service apparel, and related minor products 2 num­
bered approximately 1,800 in 1939, employed almost 170,000 workers,
and turned out a product valued at roughly $500,000,000.
The industry is found largely east of the Mississippi River, although
a few plants operate as far west as California. Numerous plants are
scattered throughout the South. The leading States, in terms of
number of workers, are Pennsylvania, New York, Missouri, Indiana,
and Tennessee. A substantial proportion of the product is manu­
factured in small towns; in 1939 establishments employing about
two-fifths of the workers were in places of less than 25,000 population.
Standardization and the division of labor are relatively advanced in
the industry, and permit manufacture on a rather large scale. A
number of plants employ 500 workers or more and a substantial
majority of the workers are employed in plants of 100 or more. Multi­
unit companies operating plants in several different towns or cities are
common. Competition in selling exists on a national scale and is
exceptionally keen.
Labor is important in the industry, the cost of wages in the various
branches averaging about one-fourth of the total value of the product.
A large majority of the wage earners are women. Skill requirements
in the industry are, for the most part, not high, most occupations
being classed as semiskilled. Much of the work involves the operation
of sewing machines. Earnings are typically based on piece rates.
In 1939, when the 30-cent minimum became effective, many plants
in the industry operated under union agreements; this is still the case
today. These agreements were negotiated with the Amalgamated
Clothing Workers of America (C. I. O.) or with the United Garment
Workers of America (A. F. of L.).
In view of its economic characteristics, this industry is one in which
the imposition of a minimum wage might be expected to result in the
prompt displacement of large numbers of subminimum workers. As
a result of high labor cost in the industry and the pressure of com­
petition, management is undoubtedly keenly sensitive to changes in
wage rates and has a strong incentive to eliminate workers who they
feel are not worth the minimum.3 Moreover, because of the preva­
lence of piece payment, the less-efficient workers are easy to distin­
guish.
J The manufacture of women’s cotton dresses, sometimes considered part of the cotton-garment industry,
has been excluded from the present study and from the Bureau’s recent studies of wages and hours of work.
3 Little is known about the elasticity of the demand for the product, but it does not appear likely that
price changes in this industry would affect the amount sold to as great an extent as in other of the apparel
industries.
Aside from the gradual introduction of the line system of production there have been no important de­
velopments in technology in the industry in recent years.


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On the other hand, it may be unrealistic to assume a close relation­
ship between wage rates and marginal productivity in this industry.
As has been pointed out, a large proportion of the labor force is com­
posed of women who are typically poor bargainers in matters of wages.
Moreover, a substantial proportion of the workers—particularly the
low-wage workers—are in small towns, where labor is relatively
immobile. Under circumstances such as these there may be large
groups of low-paid workers who receive less than their marginal
product, and whose wages can be raised appreciably without making
it uneconomical to continue to employ them.
WAGE STRUCTURE OF THE INDUSTRY

The manufacture of cotton garments has long been known as a
low-wage industry. Even in prosperous 1937 hourly earnings in
important branches of the industry averaged around 36 cents. Fol­
lowing a drop in 1938, average earnings rose to 35.8 cents by March
1939 and to 41.8 cents by March 1941.4 The average for all manu­
facturing industries in the latter month was 69.7 cents.
Minimum-wage regulation has been largely responsible for the
modest increase in earnings in recent years. The 25-cent minimum,
compulsory under the Fair Labor Standards Act, became effective in
October 1938 and the 30-cent minimum went into effect a year later.
In July 1940 a 32.5-cent minimum wage was established, by order of
the Administrator.5 Meantime, under the provisions of the WalshHealey Public Contracts Act, employees engaged in the production
of goods for Federal contracts were receiving a minimum of 37.5
cents an hour; this minimum became increasingly important after the
launching of the defense program.
What proportion of the workers in the industry was affected by the
25-cent minimum is unknown, but the number was undoubtedly
substantial. In March 1939, shortly before the 30-cent minimum
went into effect, 40 percent of the workers were earning less than 30
cents and hour, and 50 percent were earning less than 32.5 cents.
The influence of these minimum wages was consequently very great.
By March 1941 only 2.7 percent of the workers in the industry were
earning less than 32.5 cents, but 62.4 percent were earning less than
40.0 cents an hour. Another 24.2 percent earned 40.0 cents but less
than 52. 5 cents, and 13.4 percent earned 52.5 cents or more.6
4 The averages for both 1939 and 1941 are based on data which include the men’s single pants industry,
in which wages are slightly higher than in the cotton-garment industry.
* The minimum fixed for washable service apparel was 35 cents. Effective in August 1941, subsequent to
the period covered by the Bureau’s study, a 40-cent minimum was ordered by the Administrator for the
entire industry.
• The figures on which these percentages are based include the men’s single pants industry, in which wages
were slightly higher than in the cotton-garment industry. Further details regarding the wage structure of
the industry will be presented in an early issue of the Monthly Labor Review.


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Monthly Labor Review—February 1942

Scope and Method of Study
The Bureau’s study was based primarily on the experience of 2,274
wage earners and clerks who were employed in 28 cotton-garment
factories in March 1939 at earnings of less than 30 cents an hour.
For the purposes of this study it was not deemed necessary to
select a strictly representative sample of plants in the industry; on
the contrary, care was taken to select chiefly those plants for which
the minimum wage had involved substantial readjustment. Thus,
the plants were chosen exclusively from the work-clothing branch of
the industry (manufacturing chiefly overalls, work pants, and work
shirts) and consisted predominantly of low-wage concerns. In March
1939, 6 of the 28 plants paid wages averaging less than 30 cents an
hour, 9 averaged 30 to 35 cents, 7 averaged 35 to 40 cents, and only
6 averaged 40 cents or more.
The South, with 13 of the 28 plants and 71. 5 percent of all employees,
was somewhat overrepresented.7 Plants were included from both
rural areas and large cities, as were also large and small establish­
ments, and union and nonunion ones. The plants studied performed
all productive operations, including cutting, stitching, pressing, and
so forth. Contract shops, which are of minor importance in the
work-clothing branch, were excluded.
The period represented by the major part of the study was March
1939 to March 1941. Information on a few items, however, covered
the period March 1939 to July 1941. The beginning date was appro­
priate because of the Bureau’s wage survey of the industry as of that
month, which provided detailed information regarding the wage
structure of several hundred plants; all of the plants included in the
present study were selected from among those surveyed in 1939.
Another wage survey was made as of March 1941. Presumably the
separated workers discussed in the present article were not separated
m adjustment to the 25-cent minimum wage, since this had already
been in effect for several months. The 30-cent minimum, however,
became effective some 7 months after the opening of the period studied!
All information for the present study was obtained by the Bureau’s
field representatives from pay rolls and other plant records or by
personal interviews. Officials of each plant were asked to describe
changes in organization, methods, or policies, adopted because of the
minimum wage during the 2 years ending in March 1941. In addi­
tion, pay rolls for March 1939 and March 1941 were compared, to
ascertain how many of the workers employed at the beginning of
the period were still employed 2 years later, and how many had been
separated. Addresses were secured for all separated workers who
7 Tho northern plants were in New Jersey, Pennsylvania, West Virginia, Indiana, Illinois, Missouri
and Kansas; the southern plants were in Maryland, Virginia, Georgia, Tennessee, and Texas.


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Minimum Wage in Cotton-Garment Industry

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had earned less than 30 cents an hour in March 1939, and many of
these workers were traced and asked to provide information regarding
their work experience subsequent to separation. As is apparent from
table 1, fully 702 of the workers earning less than 30 cents an hour in
March 1939 were no longer on the same pay roll 2 years later. De­
tailed information was secured for 463 of these through personal
interview with the workers themselves or with relatives or close asso­
ciates. An additional 77 workers provided brief information by mail.
T a b l e 1.—Number of Plants and Workers Included in Bureau's Survey of Separations

in Cotton-Garment Industry, by Region
Item
Number of plants____________________ .
Workers employed in these plants in March 1939___ _ _____
Earning 30 cents an hour or more in March 1939 _____
Earning less than 30 cents an hour in March 1939_______
Still on pay roll in March 1941______ ___________
Separated from plants by March 1941______________
Separated workers interviewed 1_____________ __________

Total
28
4,665
2, 391
2,274
1, 572
702
540

North

South

15
1,876
1,229
647
429
218
168

13
2,789
1,162
1,627
1,143
484
372

1 Includes 77 workers (27 in the North and 50 in the South) from whom brief information was secured
by mail.

Employer Adjustments to the Minimum Wage
Fortunately for the manufacturers, the economic position of the
cotton-garment industry was generally favorable following the effec­
tive date of the 30-cent minimum wage. Sales increased substantially
during the latter part of 1939 and, following a decline in early 1940,
registered additional gains in late 1940 and in 1941. Business activity
was stimulated particularly by the general upswing of employment
and by large Government contracts awarded in connection with the
defense program. Prices also rose appreciably; the wholesale prices
of standard grades of overalls, for example, increased by about 10
percent between March 1939 and March 1941.
A review of the experience of the 28 plants subsequent to March
1939 reveals that most of them made little or no change in methods,
organization, or policies to effect successful adjustment to the 30-cent
or the 32.5-cent minima. This was in spite of the fact that the effec­
tive dates of both these regulations were known to the industry
months in advance.
INCREASES IN EARNINGS OF SURMINIMUM WORKERS

8 RETAINED

As has been seen from table 1, about two-thirds (1,572) of the
workers who in March 1939 were earning less than 30 cents an hour
8 The “subminimum workers” referred to in this section and throughout the remainder of the article are
those workers who were earning less than 30 cents an hour in March 1939. The term does not include work­
ers whose earnings were 30 cents an hour but less than the 32.5 cents subsequently established as the mini­
mum wage.
4 3 8 4 7 1 — 4 2 -------4


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Monthly Labor Review—February 1942

were still employed in the same plants 2 years later. As one indica­
tion of the effect of the changes made by the various plants, it is of
interest to see what happened to the hourly earnings of these workers
who were retained. Examination of table 2 reveals that the earnings
of most workers had risen sharply by March 1941. A negligible
proportion of workers were earning less than 32.5 cents in 1941. Less
than two-fifths of the workers were earning exactly the 32.5-cent
minimum, and scarcely more than half were earning less than 35 cents
an hour. The remainder had enjoyed a considerably greater increase
than was required to attain the minimum. Median hourly earnings
had risen from 26 to 34 cents, or by 31 percent. The proportionate
increase was 22 percent in the North and 35 percent in the South.
T able 2 .—Percentage Distribution of 1,572 Identical Workers Earning Under 30 Cents

an Hour in 1939 and Employed in Same Plant in 1941, by Average Hourly Earnings
and by Region, 1939 and 1941
North

Total

South

Average hourly earnings
1939

1941

1939

1941

1939

1941
0.4

Under 25.0 cents_________ _ _ . _ _ ___________
Exactly 25.0 cents__ ___________________________
25.1 and "under 27.5 cents
_
________
27.5 and under 30.0 c e n ts ._________ _______ _____
30.0 and under 32.5 cents .. ..
__________ _____
Exactly 32.5 cents___
___ ____________
32.6 and under 35.0 cents
. . ______
35.0 and under 40.0 cents______________ ______ ...
40.0 and under 45.0 cents____________ _ ____ ___ _
45.0 and under 50.0 c e n ts................. ............ ...............
50.0 cents and over_____________________________

6.7
27.5
37.4
28.4

Total____________________________________

100.0

100.0

100.0

100.0

100.0

100.0

Number reporting earnings ____________________
________ . ______ ..
Earnings not reported .

1,572

1,554
18

429

420
9

1,143

1,134
9

0.4
.3
.2

.3
.4
38.7
15.3
35.8

3.3
19.1
35.2
42.4

0.5

8.0

30.7
38.2
23.1

1.0
.2

.7
52.0
10.2

24.5
7.1
3.1
.7

6.1

1.7
.8

.1

.3
.3
.3
33.8
17.1
39.9
5.7
1.2
.9

Total workers...................................... ..................

1,572

1,572

429

429

1,143

1,143

Median earnings_______________________________

$0.26

$0.34

$0.27

$0.33

$0.26

$0.35

Characteristics of the Subminimum Workers
Table 3 reveals that an overwhelming majority (93 percent) of the
subminimum workers were women and girls,9 the proportions being
slightly lower in the South than in the North. The percentage of
female workers was somewhat smaller among the separated workers
interviewed than among subminimum workers as a whole.
Most of the subminimum workers, in common with other workers in
the industry, were white. Only 30 Negro workers were reported; 12
in the North and 18 in the South. Seven Negroes were interviewed
by the Bureau’s representatives.
• In the work-clothing industry as a whole, according to the Bureau’s 1939 wage survey, women and girls
made up 85 percent of the total labor force.


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T able 3. —Percentage Distribution oj Subminimum Workers, by Sex and by Region
Total
Sex

North

South

All subSeparated
All sub­
Separated
All sub­ Separated
minimum
workers
minimum
workers
minimum
workers
workers interviewed workers interviewed workers interviewed

M ale. ___________________
Female____ ______________

7.4
92.6

87.8

4.9
95.1

10.7
89.3

Total__________ _____

100.0

100.0

100.0

Number of workers_________

2,274

540

647

12.2

8. 4
91.6

12.9
87.1

100.0

100.0

100.0

168

1,627

372

OCCUPATION AND METHOD OF PAYMENT

The great majority of the subminimum workers were sewingmachine operators, this occupation being the most important numer­
ically of any in the entire industry.
About two-thirds (65 percent) of the subminimum workers were
paid on a piece (or production bonus) basis, the percentage being
slightly higher in the North (66 percent) than in the South (64 percent).
Machine operators are nearly always paid by the piece, while clerks,
maintenance workers, and certain other groups are usually paid by
the hour. About four-fifths (77 percent) of the separated workers
were piece workers.
Other information is available only with regard to the separated
workers who were interviewed, and cannot be considered as strictly
representative of all subminimum workers. It is probable, for
example, that the workers retained in the plants were somewhat older
than the workers interviewed, who averaged scarcely more than 25
years. Table 4 reveals that the greatest concentration of the separated
workers fell in the 5-year class 20 to 24, while fully three-fourths of all
workers were under 35 years of age. Only 24 workers (4.5 percent)
were 50 years of age or older. Workers in the North were slightly
younger, on the average, than those in the South.
T able 4. —Percentage Distribution of (Separated) Workers Interviewed, by Age Class

and by Region, July 1939
Age class

Total

North

South

Under 18 years__________________________________
18-19 years________ ______________________
20-24 years___________
. . _____________
____
25-29 years______________ ________ . _________
30-34 years..___ ________ _____ ___________ ..
35-39 years____ _ ____________________ _ .
40-44 y e a rs_______ _________ . ___ _.
45-49 years___ ___________ ________________
50 years and over______________________________

1.5
11.7
32.9
20.9
10.5
9.2
4.5
4.3
4.5

13.3
26.8
24.3
14.5
9.7
4.2
4.8
1.8

1.9
10.9
35.6
19.5
8.7
9.0
4.6
4.1
5.7

Total____ _____ _____ ___ _______________

100.0

100.0

100.0

Number reporting age____________________________
Age not reported__________ ______________________

531
9

165

366

3

6

Total workers..._______ _____________________

540

168

372


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Of the workers providing information as to schooling, almost threefourths (78.1 percent) had finished grade school, and a fifth (19.1
percent) had gone through high school. A larger proportion of northern
than of southern workers had been through grade school, but 12
southern and no northern workers had gone beyond high school.
Although the workers were young, on the average, a large majority
of them (90 percent) had had at least a year of experience in the
industry by March 1939. Only 3.3 percent had had less than 3 months’
experience; 41 percent had had 5 years’ experience or more; and 15
percent had had 10 years’ experience or more.
A substantial number of the workers were married and had children.
Information on this point, however, was obtained as of July 1941
and undoubtedly exaggerates somewhat the number of married per­
sons and of parents in 1939; as will be noted later, marriage and childbirth were important causes of separations. Of 524 persons for
whom information on marital status was obtained, only 22 percent
were single in July 1941, 70 percent were married, and 8 percent
were separated, widowed, or divorced. Of 474 workers for whom
information regarding children was obtained, 50 percent had no
children and 50 percent had 1 child or more. Only 24 workers re­
ported more than 3 children.
Only a little more than a third of the workers (36.5 percent) reported
that their earnings were the chief source of their family income.
Since a number of these were single persons living alone, it is clear
that relatively few of the workers had other persons dependent solely
upon them. Many of the woman workers were supplementing the
income of their husbands.
Extent of Separations
Of the 2,274 workers included in the Bureau’s study who were earn­
ing less than 30 cents an hour in March 1939, 702 were no longer on the
pay rolls of the respective plants in March 1941, but had been sepa­
rated for one reason or another. The separations during the 2-year
period consequently amounted to 30.9 percent of the total, and the
average monthly separation rate was 1.5 percent. As compared with
other lates in common use, it should be mentioned, this rate tends to
understate the extent of separations, since it does not include tempo­
rary lay-offs nor extended absences caused by sickness. The monthly
number of workers on which it is based, moreover, was not maintained
by accessions of “ floaters” and other temporary workers, but consisted
of a constantly diminishing group of relatively stable employees.
Even so, the rate does not appear to be particularly high for one of the
apparel industries, in which monthly separation rates frequently


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Minimum Wage in Cotton-Garment Industry

average more than 4 percent over long periods, and in which “ quits
and discharges” alone often exceed 2 percent.
It is of interest to note that separations were relatively more numer­
ous among the subminimum workers than among higher-paid workers
in the same plants (table 5). Even among the workers earning
30 cents or more in March 1939, 22.8 percent were separated
by March 1941. It is clear, therefore, that inability to earn the
30-cent minimum wage constituted by no means the only reason for
separation. It will be observed that the separation rates 10 of the
subminimum workers, however, show an indirect relationship to the
workers’ earnings. Thus, the highest rate, 38.0 percent, existed for
workers paid exactly 25.0 cents an hour, a lower rate for those paid
25.1 and under 27.5 cents, and a still lower rate for those paid 27.5 and
under 30.0 cents. An exception is noted in the case of the workers
receiving less than 25.0 cents an hour, but because of the small number
and exceptional character 11 of these workers, this exception may be
ignored. Among the workers paid 30 cents or more in 1939, the
separation rates also varied indirectly with average earnings. The
consistency of this pattern, when the data are segregated by region and
along other lines, leaves little doubt that the earnings of the workers
exercised a constant though moderate influence on separations.
T able 5.— Separations of Workers on P ay Rolls in March 1939, by Earnings of Workers

and by Region

Average hourly earnings
in March 1939

Separated by
March 1941
On pay
roll in
March
Num ­ Per­
1939
ber
cent

On pay
roll in
March
1939

Separated by
March 1941
Num­
ber

Per­
cent

Separated by
March 1941
On pay
roll in
March
Num ­ Per­
1939
cent
ber

22.8

1,876
647
1,229

455
218
237

24.3
33.7
19.3

2,789
1,627
1,162

33.5
38.0
28.4
25.3
31.1
28.2
16.9

16
136
234
261
186
158
885

4
54
83
77
67
48

25.0
39.7
35.5
29.5
36.0
30.4
13.8

139
561
587
340
403
342
417

All workers________ _____
Under 30.0 cents______
30.0 cents and over------

4, 665
2, 274
2,391

1,246
702
544

26.7
30.9

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__
32.5 and under 35.0 cents__
35.0 cents and over...............

155
697
821
601
589
500
1,302

52
265
233
152
183
141
220

South

North

Total

122

791
484
307

28.4
29.7
26.4

48

34.5
37.6
25.6

211

150
75
116
93
98

22.1

28.8
27.2
23.5

VARIA TIO N S BY T Y PE OF PLA N T

The proportion of sub minimum workers separated during the 2-year
period varied widely from plant to plant. The following list of
separation rates reveals that one plant had no separations at all, while
10 This term is used for convenience to refer to the percentage of workers separated during the entire 2-year
period.
11 Many of them were learners.


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M onthly Labor Review—February 1942

in another fully 58.0 percent of all workers were separated. Sixteen
of the plants, however, had separation rates ranging from 20.0 to
37 .8 p ercen t.
Separation
rate
(percent)
All plants.
_________ 30. 9 Plant
Plant
Plant No. 1__________ _________ 58. 0 Plant
Plant No. 2__________ _________ 48. 6 Plant
Plant No. 3__________ _________ 44. 4 Plant
Plant No. 4__________ _________ 42. 0 Plant
Plant No. 5__________ _________ 40. 0 Plant
Plant No. 6__________ _________ 37. 8 Plant
Plant No. 7__________ _________ 36. 8 Plant
Plant No. 8__________ _________ 35. 9 Plant
Plant No. 9__________ _________ 35. 9 Plant
Plant No. 10_________ _________ 31. 5 Plant
Plant No. 11_________ _________ 30. 0 Plant
Plant No. 12_________ _________ 29. 4 Plant
Plant No. 13_________ _________ 29. 1 Plant

Separation
rate
(percent )

No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.

14____________________ 28.
15____________________ 27.
16____________________ 25.
17____________________ 24.
18____________________ 23.
19___________________ 23.
20____________________ 21.
21____________________ 20.
22___________________ 16.
23___________________ 15.
24___________________ 13.
25___________________ 13.
26___________________ 13.
27___________________ 7.
28___________________
.

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

Segregation of the plants into groups with common characteristics
reveals the influence of a number of underlying factors. Plants paying
high average wages in March 1939, for example, had relatively more
separations than those paying low wages. Thus, 32.3 percent of the
subminimum workers in plants paying an average hourly wage of
32.5 cents or more were separated, but only 30.6 percent of those in
plants paying lower average wages. Plants that raised piece rates
lost somewhat fewer (26.4 percent) of their subminimum workers than
did plants which made no change in piece rates (33.1 percent).
Plants in which fewer than 20 percent of the workers earned less
than 30 cents an hour in 1939 had an average separation rate of 32.8
percent, while the ratio in plants with 50 percent or more of submini­
mum workers was 30.4 percent. A further analysis of the data sup­
ports the indication that the proportion of subminimum workers exer­
cised little influence on the relative number of separations.
VARIATIONS BY TYPE OF WORKER

Differences in the separation rates of various groups of workers
were considerably sharper than those characterizing the plants. Thus
the rate for males (46.2) was much higher than that for females (29.6).
This may have reflected the greater mobility of male workers, for many
of them quit to accept better jobs. Males had higher separation rates
than females both in the North and in the South.
Separation rates by age of worker are not available, but there is
little doubt that the younger workers were more than proportionately
represented among the separated workers. Only 7 of the 30 submini
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Minimum Wage in Cotton-Garment Industry

329

mum Negro workers employed in 1939 were separated by March 1941;
these figures yield a rate of 23.3.
Table 6, which presents separation rates for the several occupa­
tions, reveals that separations were less common among the operators
than among most other groups. It is probable that on the whole the
machine operators were more specialized in their abilities than the
workers in other occupations, and consequently less free to change
jobs. Examiners and inspectors had the highest separation rate,
closely followed by spreaders. Clippers and trimmers had the lowest.
T a b l e 6- —Separation Rates of Workers Earning Less Than 30 Cents an Hour in 1939,

by Occupational Group and by Region
Total

Occupational Group

North

South

Separated by
Separated by
Separated by
On pay March 1941 On pay March 1941 On pay March 1941
roll in
roll in
roll in
March
March
March
1939 Num ­ Per­
1939 Num ­ Per­
1939 Num ­ Per­
ber
cent
ber
cent
ber
cent

All groups____________________

2, 274

702

30.9

647

218

Clerical workers_____________
Clippers and trimmers_________
Examiners and inspectors__
Floor workers_________________
Folders and turners____________
Operators____________________
Packing, shipping, and maintenance workers_______________
Pressers______________________
Spreaders___ ____________ ____
Miscellaneous workers_________

23
57
108
25
29
1,829

8
11

4

1

538

34.8
19.3
48.1
40.0
34.5
29.4

547

27
27
14
5

31.8
36.5
43.8
41.7

13
4
4

85
74
32
12

52
10
10

8
8

4
17
4
3
178

10

4
4

11

38

1
2

33.7
0)

(>)
44.7
(')
(*)
32.5
0)
0)

(»)
(>)

1,627

484

29.7

19
46
70
17

7
7
35
6

21
1, 282

7
360

36.8
15.2
50.0
35.3
33.3
28.1

75
61
28

23
23
13
3

30.7
37.7
46.4
(«)

8

* Percent not given, because of small number of cases involved.

Reasons for Separation
Information regarding reason for separation, employment experience
subsequent to separation, and other pertinent matters was secured from
a group of 540 of the separated workers, most of whom were personally
interviewed by the Bureau’s field representatives. Reason for separa­
tion was also secured from the employers whenever possible. Although
every effort was made to cover a representative group of workers, it
is recognized that there is probably some overrepresentation among the
540 workers of those who were recently separated, those who did not
move far away, and those who for other reasons were most easy to
find and most willing to provide information.
VOLUNTARY AND INVOLUNTARY SEPARATIONS

Employers and workers agreed that the greater number of the sepa­
rations were voluntary. Employers’ records, which often failed to
give the reason for leaving, identified only 76 workers as having been
discharged or laid off and listed nearly 3 times as many (227)^as
having resigned or quit. The reports of the workers themselves (or

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330

Monthly Labor Review—February 1942

of their friends or associates) provided much more complete informa­
tion regarding reason for separation. Out of 531 workers for whom
such information was obtained, only 88 were reported as discharged
or laid off, 433 were reported as having resigned or quit, and 11 died
or were drafted for military service. Since employers’ records could
be expected to be more complete in the case of discharged workers
than for those who left voluntarily, these two versions of reason for
leaving appear to be fairly consistent and lead to the conclusion that
only about 1 out of 6 of the separations were due to discharge or lay-off.
The involuntary separations, to be sure, were more common in
some plants than in others—and among some groups of workers.
Relying on the workers’ reports, because of their greater completeness,
it is indicated that 21.2 percent of the workers in the South, but only
6.5 percent in the North, were discharged or laid off. Discharges
and lay-offs accounted for 16.2 percent of the separations in places
of less than 100,000, and 19.2 percent in larger places.
Plants with a large proportion (over 40 percent) of subminimum
workers discharged relatively fewer workers than did plants with few
(less than 20 percent) subminimum workers, the respective percent­
ages of workers separated due to discharge or lay-off being 11.1 and
23.5. Only 8.2 percent of the workers receiving 27.5 to 30.0 cents
an hour in March 1939, but 14.3 percent of those paid less than
25.0 cents, were discharged or laid off. Only 14.3 percent of the male
workers, but 16.9 percent of the females, were separated by discharge
or lay-off. Three of the 7 Negroes for whom information is available
were discharged. Fully 38.7 percent of the separated workers 40
years of age or older were discharged or laid off, as compared with
only 12.3 percent of the workers under 30.
SPECIFIC REASONS FOR SEPARATION

Table 7, which presents the reasons for separation in further
detail, brings out interesting additional facts. It will be noted, for
example, that the employers cited unsatisfactory production as the
most common cause of discharge, while the workers named other
reasons.12
The most common single reason for resigning, as given by the
workers, was to accept another job. The number of workers giving
this leason alone was as great as the total number discharged or laid
off and clearly reflects the favorable employment opportunities exist­
ing after March 1939.
■Ut should be borne in mind in interpreting table 7 that the percentage distributions representing the
workers reports are based on substantially larger numbers of separations than the distributions representing
the employers reports. Consequently, disagreement of the employers and workers as to the percentage
of separations due to a given cause does not necessarily imply direct contradictions with regard to identical


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331

Minimum Wage in Cotton-Garment Industry

T able 7.—Percentage Distribution of Separated Workers, by Reason for Separation,

as Reported by Employer and by Worker, and by Region

Reason for separation

South

North

Total

Em­ Work­ Em­ Work­ Em ­ Work­
ployer’s er’s ployer’s er’s ployer’s er’s
report report report report report report
24.2
12.9
11.3

21.2
5.8

72.6
6. 5

76.6
16. 5

9.1

92.3
16.7
6. 5
13.1

11. 3

16.7
1.5

7.7
16.1

10.9

3.6
1.5

2.4
10.1

10.7
1.7
9. 1
8. 3
3. 3
7.2
4.1
1. 7
9.9
3.0

6.5

D ischarge nr laid off
__
_ __ ____ - _ __ -Unsatisfactory production___
______ _____
Other reasons - ___________ _______ - - - —

24.2
12.7
11.5

16.6
4.3
12.3

24.2
12. 1
12.1

5.3

Resigned or quit
__________________ _________
Other job
______
_____
_ -------111 health due to work
111 health no mention of work___________ _
_ __

72.3
8.3

81.5
16.5

71.3
15.2

10.8

11.5
1.5
8.7
10.7
2.3
5.6

Tnnrnoend wnrlr

_
_

Marriage.
_____ _____ ________—
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_
M aternity
__ _
_
_____
School
Family left town
___
_____________ _______
keep house
_ ____________ - Personal disagreement at work
__ __
Resigned for other reasons related to work-« _ __
Resigned for other reasons not related to work --------Resigned, specific reason not given ----------------------- _
Other separations
Drafted
Died -------------------------

_ ____ ________ — _____________________
------------------------------------------------------------------------

12.1

8.3
2.9
9.6
3.2
.3
1.3

2.8

6.0

1.9

1.5
3.0
19.8

10.1
6.0

3.5
2.5

1.9
1.3

4.5
3.0
1.5

1.2
1.2

13.9

1.0

.6

100.0

100.0

100.0

314
226

531
9

102

540

540

168

______ _________

2.4

4.0

10.0

------------------- ------------------------------- -----------------------------------

Total workers

1.2

1.6

Number reporting type of separation _________________________
Type of separation not reported.......... .......................

Total.

1.2

10.1

3.6
11.3
3.6
.4
1.2
1.2

15. 4

1.1

12.5
3.2
2.4
.8

2.2

1.4
.

8

100.0

100.0

100.0

168

248
124

363
9

168

372

372

66~

A surprisingly large number (76, according to the workers’ reports)
resigned because of actual or threatened illness. Fifteen of these re­
signed because of physical or mental strain resulting from their work,
several of them mentioning that they had difficulty maintaining the
required production. Sixty-one failed to mention their work as a
cause, but since this question was not always raised, some of these, too,
may have suffered strain from their jobs. Forty-six workers reported
that they resigned to be married and keep house; 57 resigned because
of approaching childbirth. Thirty workers resigned because their
families moved out of town.
Worker Adjustments After Separation
A substantial majority of the workers appear to have accomplished
their personal and economic adjustment after separation without great
loss or suffering. This is not surprising, in view of the fact that most
of the separations were voluntary.
CHANGE OF RESIDENCE

A large proportion of the workers still lived in the same vicinity in
July 1941 as in March 1939. Fully 64.1 percent of the 533 workers for
whom information is available lived in the same town in which they


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332

Monthly Labor Review—February 1942

had worked, and another 9.6 percent lived outside the town but within
10 miles of the plant in which they had been employed. These groups
account for nearly three-fourths of the workers. An additional 5.7
percent lived 10 but less than 25 miles away from the plant, 10.4 per­
cent lived 25 but less than 100 miles away, and only 10.2 percent lived
100 miles or more away from the plant. Workers living in distant
places, to be sure, were less likely to be included in the Bureau’s study
than those living near the plants.13 The above figures consequently
tend to understate the extent of the movement that actually occurred.
On the other hand, movement from the locality did not necessarily
imply difficulty in making occupational readjustment, since some
workers are known to have quit work because their families moved.
The proportion of workers moving away from the vicinity in which
they had worked was somewhat greater in the South than in the North.
Thus, 25.6 percent of the southern workers reporting, but only 9.0 per­
cent of the northern, lived 25 miles or more from their former place of
work in July 1941. About one-third (32.3 percent) of the workers
who had been employed in places of 5,000 population or less lived 25
miles or more away, but only 1 out of 20 (5.3 percent) of those from
cities of 100,000 or more. Fully 22.9 percent of the workers under
30 years of age, but only 5.8 percent of those 40 or older, lived 25 miles
or more from their previous work place.
'
NUMBER SEEKING WORK AFTER SEPARATION

Almost half (44.2 percent) of the workers for whom information is
available did not seek work at all after being separated from their
jobs. This proportion seems reasonably consistent with the infor­
mation or reason for separation presented in table 7. An over­
whelming majority of the persons leaving the labor market were
women or girls.
UNEMPLOYMENT

Few of the workers seeking jobs suffered seriously from unemploy­
ment. Table 8 includes only the 477 workers who were separated
prior to January 1, 1941, and who had consequently had at least 6
months in which to secure jobs. It will be noted that fully 60.0 percent
of the workers entering the labor market had no unemployment lasting
as long as 1 month before finding work. Only 19.3 percent of the
workers were unemployed over 6 months before finding their first
jobs. On July 1, 1941, only 6.0 percent of these workers had been
unable to find a first job and were still seeking work.
»*An attem pt was made, however, to find all workers, either by personal visit or by letter.


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333

Minimum Wage in Cotton-Garment Industry

T a b l e 8 . —Percentage Distribution of Workers Separated Prior to January 1, 1941, by

Duration of Unemployment and by Region
Unemployment before
securing first job

Total unemployment to
July 1,1941
South

Total

North

South

Total

North

60.0
3.6

62.4
2.9

5.1
5.8
11.3
5.8

59.2
3.9
4.9
5.8
5.8

52.5
3.7
5.9
5. 5

50.0
1.5
7.4
7.4

11.6

11.2

4.3

6.3
2.9

15.1
7.4
3.7

17.6
4.4
2.9

53.5
4.4
5.4
4.9
5.4
14.2
8.3
3.9

T otal_____________________ ______________

100.0

100.0

100.0

100.0

100.0

100.0

uni uer icpui tiiig uui otiuu uuciupiuj iuvuu. _- — - Duration of unemployment not reported-----------------

275
7

69

206
7

272
10

68
1

204
9

Total remaining in labor m arket__________ _
Not remaining in labor market----- ------------ -----------

282
195

69
69

213
126

282
195

69
69

213
126

Total workers separated prior to January 1,1941.

477

138

339

477

138

339

No unemployment
2 months

- ____________—
__________________ _____

4 o months
_ _______________ _______
7 12 months
---------------- -----------------13 24 months
______________ -- 25-28 months___________________ _________ —........

6.2

10.1

2.9
5.8

2.2

6.2

8.8

Table 8 also indicates the total amount of unemployment experi­
enced by these workers to July 1, 1941. It will be noted that 52.5
percent of the workers who had been in the labor market had experi­
enced no unemployment or been out of a job for less than 1 month,
and only 26.2 percent had been unemployed over 6 months. Of the
workers who were separated before January 1, 1941, and who wanted
to work, only about one-seventh (14.0 percent) were unemployed
as much as 50 percent of the time they were in the labor market.
Unemployment was a slightly less serious problem for persons 40
years of age or older than for persons under 30. Women and girls
suffered more than men from unemployment. Unemployment was
also more common among workers in small towns than among those
in large cities.
PUBLIC ASSISTANCE

Only a scattered few of the workers were so hard pressed as to
require public assistance for themselves or their families. The families
of 27 workers received public assistance of one type or another after
the worker’s separation. WPA employment and motlieis aid were
the most common type of assistance. One family, not included in
the 27, received Federal surplus commodities.
FIRST JOBS

A large proportion (48.1 percent) of the workers who stayed in the
labor market turned to the apparel industries for their first jobs.
Another 10.7 percent obtained jobs in other manufacturing industries,
and 8.7 percent found positions in wholesale or retail trade. Three-


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334

Monthly Labor Review—February 1942

fourths (75.3 percent) of the workers secured first jobs in establish­
ments which were reported to engage in interstate commerce.
The occupations of the workers in their first jobs are given in table
9. It will be seen that a large proportion (48.9 percent) of the
workers were classified as apparel operatives, most of them being
sewing-machine operators. Another 15.3 percent were operatives in
other industries, but no other single occupational class was of much
importance.
T able 9 .—Occupations of Workers in First Jobs After Separation and in Jobs Held

July 1, 1941, by Region
First occupation

540
246 100.0
203 82. 5
3
1.2
h
4.5
29 11.8

Employed or seeking work, oc­
cupation reported....... ........... 288 100.0
Professional...___ ______
2
.7
Farmers_______________
1
.3
Other proprietors and offic ia ls ...___ ___________
41 1.4
Clerical________________
8
2.8
Salesmen and saleswomen.. 14 4.9
Craftsmen, foremen, etc___
4
1.4
Laundry operatives______
2
.7
Mechanics’ helpers______
3
1.0
Textile operatives________
10
3.5
Apparel operatives............. 141 48.9
Other operatives_________
34 11.8
Domestic-service workers...
6
2.1
Eestaurant workers______
9 3.1
Other service workers_____
4
1.4
Farm laborers.............. .......
2
.7
Other laborers___________
12
4.2
Unemployed____________ 1 32 1 1 .1
6

unemployed coS in L ^sly T te^sepaÌatÌon" ^

168
94 100.0
81 86.2
3
10

3.2
10.6

73 100.0

2
1

5
1

3
4
37

2.7
1.4
6.8

1.4

4.1
5.5
50.6

8
1
2
1

11.0

4
14

5.5
5.5

1.4
2.7
1.4

Total

North

South

bUt ^

!
1

Number

Percent

3

Number

a

£

Percent

Sh

z

372

540

168

372

152 100.0
122 80.2
3 2.0
8
5.3
19 12.5

283 100.0
229 80.9
4
1. 4
16 5.7
34 12.0

103 100.0
88 85.4

180
141

2.9
11.7

22

12.2

215 100.0
2
.9
1
.5

251 100.0
1
.4

64 100.0

187

100.0

2

7
9
3
2
6

104
26
5
7
3

2
8
I 28

5

1

Percent

j Number

1

1 Percent

Number

1

Percent

Total.
Not in labor m arket.
Housewives____
Students______
Military service.
O ther..................

Occupation not reported.

South

Percent

North

1

Total
Number

Work status and occupation

Occupation on July 1,1941

.9
3.3
4.2
1.4
.9
2.8

48.4
12.1

2.3
3.3
1.4
.9
3.7
13.0

5

8

7

2
1
1
10
110

30
5
3
6
2

11

49
6 j

2.0

3.2
2.8
.8

.4
.4
4.0
43.7
12.0
2.0
1.2

3
12

13

78. 4
72

1

3
3
3

4.7
4.7
4. 7

1
2

1.6

26
9
1

3.1
40.5
14.1

2

2. 7

2

2.1
1 1

8

4. 3
45. 0

84
21

11.2
2.1
1. 6
2.1

7

3. 7
20.9

2.4

2

3.1

19.5

4
10

6.3
15.6

39

1.6

1.1

5
4

4
3
4

.8
4.4

100.0

1

dr°PPed out of the labor market; also persons

Table 10 presents the classified hourly earnings of the workers
who remained in the labor market. It is of interest to observe
that a large proportion of the workers earned more than the
30-cent minimum wage in their first jobs. Only 12.4 percent (in ad­
dition to the unemployed) earned less than 30 cents an hour, while
14.4 percent earned 40 cents but less than 50 cents, and 9.2 percent
earned 50 cents or more. More than four-fifths (85.8 percent) of the
employed workers were receiving appreciably higher hourly earnings


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Federal Reserve Bank of St. Louis

335

Minimum Wage in Cotton-Garment Industry

in their first jobs than they had received in March 1939 ;14 a few (6.4
percent) were receiving about the same (within 2 cents an hour);
and the remainder (7.8 percent) were receiving less. Weekly earnings,
too, were considerably higher at the first jobs than at the jobs held by
the workers in March 1939.
T able 10.—Percentage Distribution of Separated Workers by Average Hourly Earn­

ings, in First Jobs Held After Separation, and in Jobs Held July 1, 1941
Job held on July 1, 1941

First job
Earnings group
Total

North

South

Total

0.5
2.2
1.1

0.5
.5
.5

4.9

.5

1.1

1.4
4.1
1.4

North

South

Average hourly earnings

Employed, earning—
Under 15.0 cents________________
15.0 and under 17.5 cents------------17.5 and under 20.0 cents---------- -20.0 and under 22.5 cents---- -------22.5 and under 25.0 cents------------Exactly 25.0 c e n ts .- -----------------25.1 and under 27.5 cents------------27.5 and under 30.0 cents------------Exactly 30.0 cents--------------------30.1 and under 32.5 cents-----------Exactly 32.5 cents--------------------32.6 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 45.0 cents________
45.0 and under 47.5 c e n ts ....-------47.5 and under 50,0 cents....... .........
50.0 cents and over______
—

04
1. 6
.8

3.6
4
f. 0

1.6

9.6
1.2

13.2
1.6
11.6

14.0
10.0
1.6

2.4
.4
9.2

4.6
15
1.5
3.1
4.6
3.1
9.2
1.5
4.6
17.0
17.0
3.1
1.5
21.5

3.2

11.4
.5
14.6
1.6

14.1
13.0
7.6
1. 1
2.7
.5
4.9

1.8

1.7

0.6
.6
.6

1.9
.6

1.7
5.2
5.2
6.9

3.7

14.9

3.4
10.3

1.4
3.2
1.4
12.3

1.7
1.7
1.7
31.1

16.0
16.7
11.7

8.6

.9

12.6

11.8

12.1

1.2

9.3
1.2

1.2

3.7
1.2

5.6

12.8

6.2

15.0

22.2

17.3

24.2

—

100.0

100.0

100.0

100.0

100.0

100.0

Number reporting hourly earnings---Hourly .earnings not reported...............

250
44

65
9

185
35

220

37

58
7

162
30

Total in labor m arket............... .
Not in labor m arket--------------------- -

294
246

74
94

220

152

257
283

65
103

192
180

Total workers____ ___________

540

168

372

540

168

372

Unemployed_____________________
Total....................

JOBS HELD IN JULY 1941

A review of the status of the workers on July 1, 1941, reveals that a
number of important changes had taken place. An additional 37
workers had stopped work, most of them to become housewives. Only
47.0 percent of the 540 workers interviewed by the Bureau’s repre­
sentatives remained in the labor market. Forty-nine workers, 19.5
percent of those in the labor market, were unemployed. There is no
reason to believe that this proportion was greater than in the previous
periods, but quite naturally it was larger than the number of workers
who had been unemployed constantly since separation.
A substantial number of workers had moved out of the apparel
industries and into other types of jobs. The proportion of workers
li some of the workers, to be sure, had received increases in pay subsequent to March 1939 but before
their separation.


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336

Monthly Labor Revieu>—February 1942

classified as apparel operatives had dropped from 48.9 percent in the
first jobs to 43.7 percent in the jobs held July 1, 1941. The proportion
of employed persons working for companies engaged in interstate
commerce had increased slightly to 79.3 percent.
Hourly and weekly earnings were slightly higher, on the average, in
the jobs held July 1, 1941, than in the first jobs after separation. It
should be borne in mind, however, that a number of workers were
unemployed or had dropped out of the labor market, and that these
were probably less competent and had earned lower wages than those
who retained their jobs. Of the 220 employed workers whose
hourly earnings are reported in table 15, fully 93.7 percent were earning
appreciably more than they had earned in March 1939, 1.7 percent were
earning about the same (within 2 cents per hour), and 4.6 percent
were earning less.
Comparing the July 1941 earnings of the separated workers (table
15) with the March 1941 earnings of subminimum workers who were
not separated (table 2), it is of interest to note that on the average
the two groups had fared about equally well. The median hourly
wage for the separated workers who had jobs was 3 cents higher (37
cents, as compared with 34) than that for the workers retained, but
this difference may have been due in part to the 4-month difference
in the periods studied. The workers retained on the pay roll showed
a considerably greater concentration at exactly 32.5 cents an hour,
and at 35.0 but less than 40.0 cents an hour.
EMPLOYMENT EXPERIENCE OF DISCHARGED

15 WORKERS

Of particular interest is the experience of the 88 workers who were
discharged or laid off. This group may be considered to include most
of the workers who were displaced directly.as a result of the minimum
wage. The occupational readjustment of these workers was some­
what less successful than that of the workers who resigned or quit.
The proportion of the discharged workers moving 25 miles or more
from their previous place of work (19.3 percent) was little different
from that of the workers who left voluntarily (21.0 percent). How­
ever, four-fifths (79.3 percent) of the discharged workers and only
half (50.5 percent) of those who resigned or quit again sought work
after their separation.
Workers who were discharged before January 1, 1941, and who
attempted to secure other jobs numbered 62.16 Of these, fully 40
were unemployed for 1 month or more and 20 were unemployed more
than 6 months before securing another job. On July 1, 1941, 15 of
the 62 discharged workers were still unemployed and seeking work,
is Where used in the present section, this term is understood to include workers laid off.
i« One other discharged worker who remained in the labor m arket is excluded from this discussion because
of lack of information as to bis employment experience.


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Minimum Wage in Cotton-Garment Industry

337

and 13 of these had been seeking jobs unsuccessfully for more than a
year. On the latter date, 26 of the 62 workers had been unemployed
at least half of the time they were in the labor market. A comparison
of these figures with those presented earlier for the entire group of
workers interviewed clearly reveals that the discharged workers
suffered from special handicaps.
A relatively smaller proportion of the discharged workers than of
those who resigned or quit secured jobs in the apparel industries.
Only 37.7 percent of the first jobs reported by discharged workers
were classified as “ apparel operatives,” and only 31.9 percent of the
workers employed on July 1, 1941, were in this occupational group.
In contrast, 49.4 percent of the voluntarily separated workers who
were employed on July 1, 1941, were apparel operatives.
Only 43.5 percent of the discharged workers who were again at work
on July 1, 1941, were employed in industries which were engaged in
interstate commerce.
Although the discharged workers experienced considerable difficulty
in securing other jobs, the earnings of those employed on July 1, 1941,
were almost as favorable as those of workers who had left voluntarily.
The median hourly earnings were 36 cents, or 2 cents higher than the
median for subminimum workers who had not been separated (cf.
table 2). None of the discharged workers earned more than 50 cents
per hour. The median weekly earnings of discharged workers were
$13.89; no worker in this group earned a weekly wage of more than $20.


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WOMAN DOMESTIC WORKERS IN WASHINGTON,
D. C., 1940
B y G race F o x , Chairman Interracial Committee, Y. W. C. A.

Summary
A STUDY of woman domestic workers in Washington, D. C., made
in 1940, developed the following facts:
The weekly schedule for full-time workers ranged from 42 to 105
hours. The median daily schedule for full-time white workers was
12 hours and 50 minutes; for Negro workers 11 hours and 33 minutes.
The weekly cash wage for full-time resident employees ranged from
$3.50 to $18.75. The median weekly wage for 564 women was $8.10.
The median earnings for 427 workers for the year 1939 from domestic
work were $350. Wages bore no fixed relation to hours or nature of
work, to type of employer’s household, to length of service, nor to the
education or special training of the employees. They depended upon
the capacity of the employer to pay and upon the need of the employee
for work at a given moment.
Most of the Negro workers interviewed preferred to live out, owing
in part to the generally poor accommodations allotted to them in the
homes of their employers and in part to the fact that a large proportion
were married and had homes of their own. The resident employees
were in general the better-paid white women who were given comfort­
able living quarters and some provision for social life.
Forty-eight percent of the workers were granted vacations annually
but only 43 percent of that number were paid in part or in full during
their holiday. Still smaller numbers of employers provided medical
care, compensation for accidents or insurance for their employees and
only 28 percent of the employers paid their employees during illness.
The cost of living for these domestic workers was found to be high
in relation to their low earnings and lack of social security. Rents
absoibed about half of their weekly wages. The range in average
rent expenditure for the various types of workers was from $3.64 to
$5.28 per week. Clothing was often given to them. The most costly
item in their clothing budgets was hosiery.
The majority of these workers carried some type of insurance, the
average weekly cost of which ranged from 23 to 78 cents. A large
number of household employees were members of churches and
lodges which sometimes offered insurance benefits to their members.
Sixty-seven percent of 514 women made an average annual contri­
bution of $11.83 to churches.
338


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Woman Domestic Workers in Washington, D. C.

339

Lack of standardization in Lours of labor, wages, and other condi­
tions surrounding the job was an outstanding characteristic of domes­
tic employment, as revealed in this study.
In general, it appeared that only a relatively small minority of the
workers interviewed were well-satisfied employees.
From the survey as a whole it appears that competent women do not
wish to enter domestic service. The reasons lie in the unsatisfactory
working conditions and limited opportunities which that field of work
offers today. Trained employers appear to be almost as rare as trained
employees. The basic grievances of mistress and maid are highly
personal. Facts explaining them are hard to obtain and often defy
generalization. Inconsiderate employers find it difficult to tell the
truth about their labor policies and resent investigation of them, while
most workers, disliking their position, refuse to be known as domestic
employees when asked about their work.
Reasons for Washington Survey
Washington as a city is unique. Since the business of government
is its main concern, it is largely the home of officials and clerks and
those who supply their needs. There is no important industrial
development to compete with household employment for the labor of
women. Large numbers of women, married as well as single, hold
Government positions and depend upon other women to do their
domestic work. The proximity of Washington to the South makes
access easy to the reserves of Negro and mountain white labor, but the
competent women in these groups often use Washington merely as a
tarrying ground to gain experience for better-paid jobs farther north.
In this city of 663,091 persons, of whom 345,569 are women,
there are only 24,825 women employed in private households. Since
1930 the population of the capital has increased 36 percent and the
number of domestic workers only 18 percent.1 The 11 training
schools operating in 1940 have failed to meet the demand for skilled
household workers. As the war effort increases and more people seek
residence in the capital the shortage becomes acute. Competent
women find more lucrative employment in the expanding Government
departments. The husbands of others get better jobs and make it
unnecessary for their wives to work. In general, only the less respon­
sible and inexperienced workers are left to respond to the demands
for domestic service.
Local studies are merely an approach to the general problem.2 A
survey of household work in Washington which the Y. W. C. A. made
1 Sixteenth Census of the United States Press Release; Series P - 8, No. 23.
2 In 1890 the United States population was 62,947,714, the number of woman domestic workers 1,433,270;
in 1910 the population, 91,972,266 and woman domestic workers, 1,828,891; in 1930 the population, 122,775,046 and woman domestic workers, 1,991,337. These figures are for hotels, boarding houses, and private
homes. (11th Census of U. S. 1890 XV, Population, P t. 2; 13th Census of U .S.IV , Occupation Statistics;
and 15th Census U. S. V, Population.)
438471— 42------ 5


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340

Monthly Labor Review—February 1942

in the spring of 19403 presents the testimony of 586 woman employees
in private households, given anonymously and voluntarily. By
guaranteeing anonymity, it was possible to reach some women in all
grades and all types of employment, from the most insecure, poorly
paid day workers who live in alley slums to the highly skilled, well
compensated employees, dwelling in some comfort and relative
security in their own homes or those of their employers.
Characteristics of the Employees
The 586 household workers here discussed included 494 regular
employees, 113 of whom held part-time jobs. The remaining 92
women were day workers; their jobs were irregular or they were paid
by the hour, day, or job. In each group the majority were Negroes—
427 among the regular employees and 87 among the day workers.3a
The white minority of 72 were in general natives of the United States,
only one-eiglitli of them being of foreign birth. Among the regular
full-time employees slightly more than one-fifth of the Negroes lived
at their place of employment, a small number in comparison to the
white group, where three-fourths were resident workers. Only a few
of these domestic workers were newcomers to Washington, the aver­
age length of residence in the city for the 586 women being 7.1 years.
Of the 486 regular employees reporting the nature of their work,
the great majority, 372, did general housework and cooking, 34 did
general housework without cooking, and 18 combined cleaning with
laundry. In the specialized groups there were 16 cooks, 13 cleaners,
4 laundresses, and 22 nursemaids. Among the 90 day workers report­
ing their type of employment, 34 did cleaning in addition to laundry,
27 general housework with cooking, and 7 general housework without
cooking, 12 were cleaners, 6 were laundresses, and 4 apparently took
what they could get.
a This study was a project of the Interracial Committee of the Y. W. C. A. and the Phyllis Wheatley
Y. W. C. A., which the boards of both associations sponsored. It rapidly became a city-wide undertaking
in which Government departments, universities, churches, settlement houses, employment bureaus, voca­
tional schools, the National Youth Administration, and many women’s organizations liberally cooperated.
Students in sociology and economics from George Washington, American, Catholic, Howard, and Maryland
Universities interviewed the workers at their churches, settlement houses, vocational schools, employment
agencies and clubs, in accordance with a schedule and instructions which Government and university
experts had helped to develop. These findings were checked by a random sample of employers interviewed
by members of many of the women’s organizations of the city. Gifts in money from the Phelps-Stokes
Fund and from Mrs. Robert S. Brookings made possible the editing and coding of the schedules which
the International Business Machines Corporation generously tabulated as its part in furthering an under­
standing of this civic problem. Special gratitude is due to Dr. Esther Cole Franklin of the National Ameri­
can Association of University Women, to Miss Mary Anderson and Miss Isadore Spring of the Women’s
Bureau, to Dr. Faith Williams, Miss Alice Hanson, Miss Frances Rice, and Mrs. Mary C. Ruark of the
Bureau of Labor Statistics, to Miss Helen Herrmann and Mrs. Malcolm Proudfoot of the League of Women
Shoppers, and to Dr. Mildred Pa.ten, Miss Thelma Drice, Mrs. Ella Putman, Mrs. Lincoln Gordon, and
Mrs. Jean Collier Brown for their important individual contributions to the completion of this work.’
This sample was checked by a random sample of employers of Washington which indicated that it would
give a more accurate picture of the city as a whole had there been a slightly higher percentage of white women
and a larger proportion of part-time workers.


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341

JVoman Domestic Workers in Washington, D. C.

T able 1.—Employment Status and Race of Domestic Employees Included in Washington,

D. C., Study
Total
Number
All

- ___
ATT!ployftps
- - _____
P ercent..- -------------------------- -----------------------

Regular workers:
TPnll-t.imp living in
Full-time living out
Part-time
D 3y workers

_
__

_

__
_

Negro

White

Employment status

_ _ _ ---_____

586

Percent
100.0

72
12.3

514
87.7

18.4
46.6
19.3
15.7

51
13
3
5

57
260

100.0

108
273
113
92

110

87

In comparison with many groups of household workers, this group
was young. Of the 488 regular employees who gave their age, 380
were under 40 years old and only 48 were over 50 years. Among
490 who discussed their marital status, 40 percent were single, 31
percent married, and 29 percent widowed, separated, or divorced.
A larger number of Negro than white women were married. The
92 day workers all reported their age and marital status: 58 were
under 40 years and only 11 over 50; 28 percent were single, 41 per­
cent married, and 30 percent widowed, separated, or divorced.
SCHOOLING, SPECIAL TRAINING, AND EXPERIENCE

All workers and their labor should be considered in relation to
their education, vocational training, and experience. Of the 494
regular employees, 489 reported on their schooling; few had spent
more than 8 years in school, the average for the group being 8.4
years. Cooks and children’s nurses had an average of 9 and 10 years,
respectively, while laundresses averaged only 6 years. The 89
day workers answering this question had a similar record. Their
average was 8.2 years in school, but those who did cooking and gen­
eral housework had had greater opportunities, while the laundresses
again had the least.
Smaller numbers reported on specialized training. Among the 462
regular employees who gave this information, onty 60 had attended
household-training school, and among 463 only 154 had had home
economics in high school. The record of 87 day workers showed
that only 13 had been to household-training schools, and that 34
out of 89 had studied home economics in high school.
Experience, however, is often more important in the making of a
good worker than training. Of the 472 regular employees who dis­
cussed their experience in household work, 55 had had experience of
less than 2 years; 52 had had over 2 but less than 4 years; 180 had
been thus employed between 5 and 10 years; and 185 had had over
10 years’ experience. Thus, the majority of the women here discussed

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342

Monthly Labor Review—February 1942

were established household employees, in the sense that they were
not new at the job.
Many of these women had also had experience in other types of
labor which in some cases could well increase their skill at household
occupations. Of the 390 regular employees who gave information
on this point, 30 had worked in factories, 92 in hotels, restaurants,
and boarding houses, 21 as clerks, 58 as nurses, and 61 in miscella­
neous jobs. The remaining 128 (32 percent) stated that domestic
work had been their only employment. The record of 77 day workers
indicated that 30 had done no other work; 4 had been employed in
factories, 18 in hotels and boarding houses, 3 as clerks, 9 as nurses,
3 in clerical jobs, and 10 in miscellaneous ways.
METHODS OF OBTAINING WORK

There is no standardized method for the placement of domestic
workers in Washington. Most women have tried all channels of
finding work during the course of their experience. Many here
reporting secured their present jobs by ways different from their usual
practice. Over two-fifths of the 473 reporting usually found work
through a friend, the grapevine method well known to many perplexed
employers. _ Among the remaining 57 percent, 23 percent of the total
number claimed the general use of a public employment agency and
12 percent the use of a private agency.4 Much smaller percentages
obtained work through former employers, through advertising, and
through the Domestic Workers’ Union.5
T able 2 —Domestic Workers' Methods of Obtaining Job, by Type of Work
Total reporting

Type of work
N um ­
ber

Per­
cent

Job obtained through—

Public Private Selfagency agency adver­
tising

An­
swer­
Former
ing
em­
Other
adver­ Friend
ployer
tise­
ment

All types of work___
Percent________

473
100

100.0

109
23.1

58
12.3

35
7.4

15
3.2

204
43.1

39
8.2

13
2. 7

General housework—
With cooking___
No coo k in g .....
Cook______________
Cleaner___________ _
Laundress__________
Nursemaid_________
Cleaner and laundress.
Other.......... ................

363
32
If)
12
4
21
18
7

76.8
6.8
3.4
2. 5
.8
4.4
3. 8
1.5

83
10
2
2

48

26
3
2
2

13

36
1

10

7
4
1

1
1
4

i
i

1

147
18
8
7
4
9
9
2

3
1

1

2
i

,* This figure is probably high because many of the women interviewed were approached through employment agencies.
s
5 The Domestic Workers’ Union in Washington is a small group of Negro workers in process of organize


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Woman Domestic Workers in Washington, D. C.

343

Working Conditions
THE EMPLOYER AND HER HOUSEHOLD

Tlic employers of these workers represented the low, middle-class,
and liigh-income levels of American life and many types of Washing­
ton’s residents. Their occupations were reported by 90 percent of
the regular employees and 5 percent of the day workers. Govern­
ment officials and employees naturally constituted the largest number
of householders in Washington. Of 449 employers, 32 percent were
members of the military or civil services; 19 percent were doctors,
lawyers, ministers, or teachers; 10 percent were business executives;
30 percent were mechanics, clerks, salesmen, etc.; and 9 percent were
unemployed or retired. There was no significant distribution of
either white or Negro workers among any group or groups of em­
ployers.
The variety in the dwelling facilities was great. Every type was
represented, from one room without a bath to the great elaborate
mansions of the capital. As bathrooms and enclosed porches add
much to the labor required of domestic employees, they are specifically
noted here. Seventy percent of 479 women worked in houses of six
or more rooms and 21 percent in homes having at least nine rooms,
several baths, and (in 59 cases) one or more enclosed porches. Eight­
een percent worked in dwellings of four or five rooms. One-, two-, or
three-room households were reported by only 12 percent of these em­
ployees. The median house consisted of six rooms with one bath
and one enclosed porch.6
The families living in these homes were small. In 30 percent of
the 479 households discussed, the family consisted of 3 people, includ­
ing 1 child. This was the median household. Almost half of these
employers had no children. About 20 percent of the households had
two children and only 3 percent had four or more.
The size of the family, however, had no consistent relation either to
the size of the house or to the number of domestic employees. Thus
22 families of 2 persons each lived in homes of 9 or more rooms, while
20 families of 3 people had dwellings of only 3 rooms. Likewise, 235
homes where the families ranged from 1 to at least 7 persons employed
1 full-time worker, and 61 households varying from 1 to 6 people
depended on 1 part-time employee. Again, 5 families, comprising
from 1 to 7 members, employed 4 full-time and ¡1 part-time workers.
The largest staff consisted of 5 full-time and 2 part-time employees.
6 The overweighting of this survey with full-time employees explains this large median house.
ple living in small apartm ents are likely to employ part-time workers.


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Peo­

344

Monthly Labor Review—February 1942
HOURS OF WORK

No other phase of domestic work is so onerous as the long hours
it entails. The demands of official and social life in Washington
households make the days of domestic employees often excessively
long. Because more white women are employed in the larger homes,
and because more white women are resident employees, the schedules
of the white women here recorded are more often excessive than are
those of the Negroes; that is, a larger percentage of them worked
more than 10 hours per day. Among the 55 full-time white workers
who gave information regarding their daily programs, only 26 percent
were on duty for less than 12 hours each day, while 31 percent worked
between 12 and 13 hours, 29 percent between 13 and 14 hours, and
14 percent over 14 hours per day. The median day consisted of 12
hours and 50 minutes.
Free time and time on call (which means time when no definite
work is assigned but when the employee is expected to be on hand
to answer bells, take messages, etc.) were both rare. One-fourtli of
the 55 women had from 1 to 2 hours of free time, some daily and some
occasionally. Less than a third had time on call. This was given
m periods which ranged from 2 hours daily to 5 hours on some days.
The schedules of the 292 full-time Negro workers who reported
their daily hours showed equal but different variations. Here 34
percent worked under 11 hours each day, 29 percent between 11 and
12 hours, 27 percent between 12 and 13 hours, and 10 percent over 13
hours. The median daily program was 11 hours and 33 minutes.
The Negro workers also had little free time and time on call.
Eighty percent ol the women had no free time at all and about the
same percentage had no time on call. Both periods of relative leisure,
when given, were irregular in amount and occurrence.
The weekly schedule for full-time white workers ranged from 53 to
96 hours; and for full-time Negro workers from 42 to 105 hours. The
resident employees again had the longest hours. Among the 48 full­
time resident white women, 40 worked 70 hours or more per week,
while 7 of the 12 who lived out worked between 55 and 60 hours.
The experience of the Negroes was similar. More than three-fifths
of the resident Negroes worked at least 70 hours per week, while for
the 250 who lived out the median week was 64 hours and 10 minutes.
The legular part-time and the day workers, of course, presented
more varied schedules. The small number of white women in these
groups makes their experience unimportant for a general statement.
The great majority of these Negro groups worked less than 40 hours
each week. A minority however, carrying several jobs, reported
schedules as long as the majority of the full-time employees.


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345

Woman Domestic Workers in Washington, D. C.
PROVISION FOR DAYS OFF

Most domestic workers, both part-time and full-time, do receive the
equivalent of 1 day off per week, but this time may be granted at
indefinite intervals and at the convenience of the employer. Among
360 regular workers only 5 percent reported no time off. Twelve
percent were given a half day, 31 percent had two half days, 23 per­
cent had one whole day, and 14 percent had a day and a half or more.
The remaining 15 percent had irregular arrangements.
T able 3.-—Weekly Hours Worked by Domestic Employees at Present or Last Job, by

Employment Status

Employment status

Num ­
ber
report­
ing

Percent of employees who worked during the
week—
50 and 60 and 70 hours
Under 40, and
50 under 60 under 70 and
40 hours under
over
hours
hours
hours

All household employees____ ___________ --

546

26.9

8.8

14.5

24.0

25.8

White workers - .
______ _________ . . .
Regular workers—
Full-time, living i n ._
...
Full-time, living o u t ___
. .......
P art-tim e___ ______
_____ .
Day workers____
. . . .. . _______

68

13.2

1.5

16.2

5.9

63.2

Negro workers_________ . . . . .
Regular workers—
Full-time, living in __
Full-time^ living out . . . __________
Part-time _________ . . . . .
................
Day workers.................... ...

478

48
12

3
5

50
250
103
75

2.1

(>)
(*)
(»)

0)

8.3

6.2

(9

0)

83.3

0)
(>)

28.9

9.8

14.2

26.6

20.5

2.0

2.0
6.8

8.0

23.2

28 0
43.6

1.0

1.0

62.0
24. 4
1.9
5.3

81.6
65.3

14.6
18.7

6.7

4.0

' Percent not shown; base too small.
ACCOMMODATIONS FOR RESIDENT WORKERS

Although resident workers had lower living expenses and although
higher wages were not paid to workers living out, 88 percent of 367
women preferred to live out. The contented members of the 108
resident employees here recorded were generally the well-paid white
women who had comfortable living quarters and some provision for
social life. The poor quarters allotted to resident Negro workers in
Washington, rooms usually in damp basements or poorly heated and
poorly ventilated attics, often with inadequate-sanitary arrangements,
such as outdoor toilets, make most Negroes reluctant to accept resi­
dent employment. The fact that a larger percentage of Negro workers
are married also makes them prefer to live in their own homes
The living quarters of resident workers here reported were of unusually
high standards. Ninety-five of the 108 women had private rooms,
2 white women shared their rooms with another employee, and 7
white women and 4 Negroes shared their rooms with a member of
their employer’s family. Private baths were provided for 16 white and
37 Negro residents; 35 whites and 16 Negroes had the use of the family

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346

Monthly Labor Review—February 1942

bath or shower. Among 99 reporting on a place (other than the
kitchen) in which to entertain their Iriends, 26 white workers and. 23
Negroes had this privilege.
Earnings of Domestic Workers
PAY PERIODS FOR DOMESTIC WORK

The great majority of employers in Washington were found to pay
their domestic workers by the week. The records of 493 regular
employees show that 81 percent were paid by the week, 11 percent
by the month, 4 percent by the day, 3 percent by the hour, and 1
percent by the job. Cleaners and laundresses usually received their
wages by the hour, day, or job. Among 91 day workers, 45 percent
were paid by the hour, 39 percent by the day, 14 percent by the week,
and 2 percent by the job.
WEEKLY EARNINGS

The low wages of household employees are another major grievance.
The median weekly cash wage for 564 women was $8.10. The wage
figure becomes more significant, however, when considered in relation
to the type of worker. For full-time resident employees wages
ranged fiom $3.50 to $18./5 per week. The median for white women
was $9.35 and for Negro women $8.85. No extra amount was paid
to workers who live out. For this and the remaining groups the
figures are for Negroes only, as the number of white workers was too
small to be significant. The median weekly earnings amounted to
$8.75 for full-time nonresident Negro workers, $6.35 for part-time
workers, and $7.60 for day workers. In all groups the range extended
from under $5 to over $14, but almost a fourth of the part-time
employees and of the day workers received less than $5 weekly.
T able 4.

Week s Cash Wages of Domestic Employees, by Employment Status and Race
Percent of employees whose w eek’s wages were—

Employment status and race

Total
re­
port­
ing

All employees.
W hite workers_____________
Regular workers—
Full-time, living in __
Full-time, living out_.
Part-time___________
D ay workers____ _______
Negro workers__________ _
Regular workers—
Full-time, living in ..
Full-time, living out.
Part-time__________
D ay workers___________
1 Median not shown; base too small.


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564
70
50
12

3
5

494
55
256
104
79

$5 $6
$7 $8
$9
Me­
and and and and and
dian Un­
der
un­
un­
un­
un­
un­
week’s $5 der der
der der der
wages
$6
$7
$8
$9 $10
$8.10

9.9

$10

$11

$12

and and and $14
un­ un­ un­ and
der der der over
$11 $12 $14

9.8 13.1 15.4 16.0

7.1 14.0

5.7

6.7

2.3

8.20 11.4 12.9 12.9 10.0 12.9

4.3 11.4

5.7 10.0

8.5

9.35
(>)

6.0 12.0

8.0 14.0 12.0

4.0 16.0 12.0

6.0 10.0

0)
0)

8.10 9.7 9.3 13.1 16.2 16.4 7.5 14.4 5.7
8.85
10.9 12.7 12.7 16.4 9.1 18.2 12.7
8.75 1.6 5.1 11.7 16.0 20.7 10.9 19.5 5.9
6 .35 24.0 19.2 19.2 22.1 10.6 1.0 1.0
7.60 24.1 8.9 10.1 11.4 10.1 3.8 12.6 7.6

6.3

1.4

5.5
7.8
1.9
7.6

1.8
.8
1.0

3.8

Woman Domestic Workers in Washington, D. C•

347

WAGES IN RELATION TO HOURS AND NATURE OF WORK

Wages showed no consistent relation to hours of work. Women
holding full-time jobs demanding over 80 hours per week were repre­
sented in every stage of the wage scale, receiving from $3.50 to $18.75.
Compensation for part-time and day work was equally unstandardized
on the basis of hours.
Wages in relation to the specialized work of the employee showed
slight variation. Cooks were the highest-paid workers. The earnings
of 14 full-time cooks averaged $10.21 per week. Children’s nurse­
maids followed, the average weekly wage of 12 being $8.83. General
housework with cooking came next, with $8.66 the average weekly
wage for 299 employees of this type. General housework without
cooking was less profitable, the average weekly compensation for 28
workers being $7.50.
The wages of part-time employees of the same categories followed
the same pattern. Cleaners and laundresses were the most poorly
paid among the part-time people. Twelve cleaners averaged $3.75
for a 17^-hour week. Twelve women who combined laundry with
cleaning were paid an average of $4.08 for 18.3 working hours.
WAGES IN RELATION TO TYPE OF HOUSEHOLD

The varied types of households here represented seem deceivingly
uniform when averages are made of the number of the rooms in their
dwellings, the number in the families, and the number of their
employees. Such averages, however, when related to the wages paid
by the households concerned, show that the extent of the household
has little consistent bearing on the amount of the wages paid. Thus,
8 full-time regular employees worked in homes which averaged 4.1
persons in the family and 5.7 rooms in the dwelling, and which
employed an average of 1 other person, for a wage of less than $5 per
week. Over 200 similar households, averaging 3.8 persons, 6.2
rooms, and 1.3 additional employees, paid their full-time regular
employees a weekly wage of between $5 and $10. Again, over 100
employers with homes averaging 4 people, 7.4 rooms, and 1.9 addi­
tional workers, paid regular full-time employees between $10 and $15
per week. The households paying the highest wages differed only
slightly, owing to smaller families and larger operating staffs, from
those paying the lowest. Seven employers offering wages of between
$15 and $20 per week for full-time regular work had homes averaging
3 persons, 7.9 rooms, and 3.9 additional employees.
WAGES IN RELATION TO LENGTH OF SERVICE

The rapid turn-over of domestic workers in jobs is generally recog­
nized. There is little evidence, however, that their wages advance or

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Monthly Labor Review—February 1942

would advance at intervals if they served a given employer with
increasing skill over a long period of time. Among 470 regular
employees here recorded, 234 had worked for their present employer
for less than a year, 88 for less than 2 years, 30 over 5 years, and only
24 for 10 years or over. The median period for 67 white women was
less than a year; for 403 Negroes, 1 year, 8 months, and 2 weeks.
Of the 223 workers holding their present job for less than a year
and reporting wages, 19 received less than $5 per week, 163 received
between $5 and $10, 39 received between $10 and $15, and 2 were paid
between $15 and $20 per week. The story of those who had worked
for the same employer between 5 and 10 years was similar. One of
these 30 women was still receiving under $5 weekly, 10 were receiving
between $5 and $10, 18 were paid between $10 and $15, and 1 received
between $15 and $19 per week. Among the 22 women employed for
10 years or more in one place, all of whom were Negroes, 2 received
under $5 weekly, 8 between $5 and $10, and 12 between $10 and $15
per week. Although a higher percentage of those employed in one
place for long periods of time received higher wages than those working
for brief periods, it cannot be concluded that wages increase with
length of satisfactory service.
WAGES IN RELATION TO GENERAL EDUCATION

There is some evidence that women with trained minds who enter
domestic work command higher wages than those with very limited
schooling, but there are many exceptions to such a rule. While more
women with some higher education were in the high-wage groups,
women who had completed only the sixth grade were found receiving
from $12 to over $16 per week and two women with no schooling
were earning between $8 and $9 and between $12 and $13 weekly,
respectively. On the other hand, there were 15 workers with more
than high-school experience earning from under $5 to $8 per week.
Looking at the question from the point of view of the training here
represented in the different wage groups, the results as regards the
regular employees were as follows. Among the 35 workers receiving
under $5 per week, 60 percent had had either no schooling or only
grammar-school training, 37 percent had been in high school, and 3
percent had had some higher education. The education of the 304
women receiving between $5 and $10 weekly showed a similar range.
Here 53 percent had had either no schooling or grammar-school
experience, 41 percent had been in high school, and 6 percent had had
higher education. In the $10 to $15 weekly wage group, 51 percent
of the 129 had had either no schooling or grammar-school training,
44 percent had been in high school, and 5 percent had had higher
education. The 7 women paid top wages, $15 to $20 weekly, were


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Woman Domestic Workers in Washington, D. C.

349

also of unequal education. Fifty-seven percent had had grammarschool experience, 28 percent had been in high school, and 14 percent
had had higher education.
The education in relation to the wages of the 83 day workers showed
less variation. Among 20 women earning less than $5 weekly, 45
percent had been to grammar school, and 55 percent to high school.
In the $5 to $10 wage group, there were 38 women, 59 percent of
whom reported grammar-school experience, 32 percent had been to
high school, and 9 percent had had higher study. Among the 24 who
received from $10 to $15 per week, 43 percent had been to grammar
school, 44 percent had been in high school, and 13 percent had had
some higher education. The 1-day worker who earned more than $15
weekly had not gone beyond grammar school.
WAGES IN RELATION TO TRAINING FOR DOMESTIC SERVICE

Domestic workers with special training for their jobs received no
higher wages than those without it. About a third of the women in
each wage group from under $5 to between $10 and $15 per week had
had courses in home economics in high school, and between 11 and
14 percent of the women in the same groups had attended household
training schools. Of course, the quality and extent of the training
could not be determined, but whatever it may have been, there had
been no monetary reward for it.
It may therefore be concluded that the wages of household woikers
are determined by forces largely beyond the control of the workers
themselves. Hours of work, nature of household, length of seivice,
general education, and special training have in no way standardized
the amount paid for the varied services of domestic employees.
Their wages depend upon individual equations—the extent of the need
of the worker for a job and the need of the employer for help and his
capacity to pay at any given moment.
ANNUAL INCOMES FROM DOMESTIC WORK, 1939

Because of the irregular employment of domestic workers in Wash­
ington during 1939, a study of the annual incomes gained through
such employment presents a gloomy picture. Seasonal unemployment
owing to the closing of homes for the summer is one of the reasons
why 14 percent of 576 employees had no work during the hot weather.
Lack of skills, lack of interest in the work, and unwillingness to meet
the unreasonable requirements of many employers, explain in part the
long periods of unemployment recorded by the 427 employees who
also gave their annual earnings in 1939 from household work. Less
than half of these women had had work for 52 weeks. About a fifth had


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Monthly Labor Review—February 1942

had domestic employment for less than 28 weeks, some of these for as
little as 2 weeks.
The range in the annual incomes of those who worked from 48 to
52 weeks does not correspond to the range in weekly wages, because
the wages given for a definite week were not always paid regularly
and because some individuals worked at different wage rates at dif­
ferent times during the year. The incomes in 1939 for 25 full-time
white employees ranged from $260 to $900 and for 173 Negroes from
$156 to $780. The range for part-time and day workers is less sig­
nificant because of the great diversity of their schedules. For 53
Negro part-time workers, the annual incomes ranged from $96 to $728.
The median earnings for the above 427 workers in 1939 were $350;
for those who worked “48 and under 52” weeks, $470, and for those
who worked 52 weeks, $420.
T able 5. — Year's Earnings of Domestic Employees in 1939, by Number of Weeks Worked

in Domestic Employment1

Length of employment

Under 4 weeks____ _____

All
em­
ploy­
ment

20 and under 24 weeks . .
24 and under 28 weeks .
28 and under 32 weeks
32 and under 36 weeks___
36 and under 40 weeks
40 and under 44 weeks
44 and under 48 weeks. .
48 and under 52 weeks.
52weeks.. ___

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

Total__________

100.0

427

4 and under 8 weeks __ .
8 and under 12 weeks______
12 and under 16 weeks. . .
16 and under 20 weeks..

Number of employees _
weekse” *$Soeam*ngS ^

ernp^oyees

Percent of employees with specified length
of employment, who earned in year—
$200 $300 $400
Un­ $100
and and and and
der under
under
under under
$100 $200
$300 $400 $500

$500 $600
and and Negroes
Whites
under over
$600

7.7

1.4

21.2

15.4
13.5
15.4
1.9
3.8
3.8
5.8
3.8

2.0
2.0

11.7
11.7
29.4
9.8
3.9
3.9
5.9

1.3
5.3

6.6
6.6

5.3

i. 3

2.6

1.3
7.6

15.7

14.4
32.9

2.5
7.6
27.8
53.2

36.4
63.6

2.7
2.7
32.4
62.2

12.2

11.9

17.8

18.0

18.5

12.9

8.7

52

51

76

77

79

55

37

2.0
2.0

6.6

18.4
2.6

2.2

3.6

1.6

5.5

2.4

1.3
6.5
7.8
5.2
14.3
61.0

1.9
1.9
3.8

Percent with
specified
length of
employment

3.5
2.4
4.6
3.2
3.0
3.2
5.9
3.2
18.0
45.4
100.0

372

1.8

3.6
10.9
5.5
9.1
3.6
7.3
5.5

20.0

23.6
100.0

55

^or those who worked “48 and under 52” weeks, $470; “52

SUPPLEMENTS TO REGULAR WAGES, AND DEDUCTIONS

Supplements.—Supplements to regular wages were not the general
policy of Washington employers. Only 35 percent of 170 employers
paid or in some way compensated their regular employees for overtime
work. Fifty-three percent of the employers of 364 nonresident workers
paid their carfare to and from work, and 58 percent of the employers
of 89 day workers had this practice. It was true, however, that 70
percent of the women earning less than $5 per week received payment


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Woman Domestic Workers in Washington, D. C.

351

for carfare. Tips from guests in the household were mentioned fairly
often as a welcome addition to the weekly wage.
Uniforms were furnished to 59 percent of 361 full-time employees,
to 37 percent of 98 part-time workers, and to 13 percent of 79 day
workers. A still smaller number of employers furnished shoes for their
workers. Eight percent of 353 full-time workers, 8 percent of 99
part-time employees, and 3 percent of i 8 day workers received then
working shoes.
Deductions from wages.—Deductions from wages were not frequent.
Only 17 out of 456 employers thus penalized their regular employees for
tardiness, and 11 out of 76 made it a practice with day workers.
Thirteen out of 456 employers charged their regular employees for
breakage, and 5 out of 79 exacted this penalty of day workers.
Vacations
Only regular employees could discuss the policy of their employers
regarding vacations. Forty-eight percent of the full-time workeis and
52 percent of the part-time workers were given annual vacations. Of
the total of 470 women answering this question, 48 percent received
vacations. A larger percentage of the white women than of the Negro
women were granted holidays. More workers among the higher wage
groups received vacations than among the poorly paid groups. Thus,
in the group receiving less than $5 per week, 38 percent of the full-time
and 32 percent of the part-time workers received a vacation; in the $5
to $10 class, 39 percent of the full-time and 57 percent of the part-time
workers reported receiving holidays; in the $10 to $15 group, 65 peicent of the full-time and 75 percent of the part-time workers received
vacations; and in the $15 to $20 class, 50 percent of the full-time
workers were granted holidays.
The length of vacation varied from 1 week to over 2 weeks, and
all employers did not pay their employees during the vacation. Thus,
among the 225 women receiving vacations only 43 percent received
their wages during the period.
Medical Care and Insurance for Household Workers
PHYSICAL EXAMINATIONS AND BLOOD TESTS

Since the health of a domestic worker is almost as important to her
employer as to herself, because in most cases she is handling the food
of the employer’s family or caring for the children, it would seem that
employers might be insistent upon physical examinations foi then
employees and would make such examinations possible. Such, how ever, is not the case. Of 479 employers of regular workers, only 57
(12 percent) required physical examinations. Fifteen percent of these


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Monthly Labor Review—February 1942

required examinations for white workers and 11 percent for Negro
workers. Of the 57 employers insisting upon the examination only
26 percent paid for it. The policy regarding day workers was no
broader. Eleven out of 85 employers required their employees to
have physical examinations and only 2 paid for them.
Employers who required domestic workers to have a Wasserman
test were still less general. Fifty-two out of 494 regular employees
had been compelled to have this test and 34 of them had had to pay
for it. However, 225 of the regular workers here recorded, 199 of
whom were Negroes, had had such tests. Among the 92 day workers
8 had been required to have the Wasserman test and 6 had paid for it
themselves. Thirty-three others, 32 of whom were Negroes, had also
had this blood examination.
MEDICAL CARE

Few employers provide for the medical care of their employees when
they are ill. Among 491 household workers only 9 percent received
medical care wholly at the expense of their employers and 1 worker
reported partial payment by her employer. Ten percent of the full­
time workers, 5 percent of the part-time group, and 6 percent of the
day workers received free medical care.
Time out for illness means a complete loss of wages for many
employees. Twenty-eight percent of 489 employers paid their
employees during illness and 6 employers paid them part of their
regular earnings. This policy was extended to part-time and day
workers as well as to full-time workers. Among the 136 employees
receiving this help, 103 were full-time, 22 part-time, and 11 day
workers. Among those partly paid by their employers during illness,
5 were full-time workers and 1 was a day worker.
The payment of compensation for accidents to employees is still
less a general practice among Washington employers. Among 447
employers only 8 percent made such provision for their workers. Ten
percent of the full-time employees, 8 percent of the part-time workers,
and 4 percent of the day workers were thus benefited.
INSURANCE

The lecord regarding the payment of employee’s insurance by
employers was so vague as to be almost useless. Four percent of 478
employers were said to carry insurance for their employees, but the
type was not defined. Here, as in the case of medical care and acci­
dent compensation, it is probable that many employees had no
knowledge of their employer’s policy. Many had worked a short time
in the household of the employer about whom they were reporting
and had had no occasion to know what would happen in the event of
their illness or an accident.

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Woman Domestic Workers in Washington, D. C.

Cost of Living
It was difficult for the workers to estimate their expenditures for
basic needs in the short period of the interview. The figures here
given are the result of what they could remember and have not the
reliability of accounts kept for a given interval. The few items dis­
cussed will merely show general tendencies. The reports of the
Negroes are more significant than those of the white workers because
of their greater number.
Most Negro domestic workers have dependents for whom they are
entirely or partially responsible.7 Those reporting here were seldom
able to tell how much of their earnings had to be used for the support
of others, but this obligation explains in part the sums spent for rent
and the very small amounts devoted to personal use. One worker
spoke for many when she said, “I turn over all my wages to my mother
to be used, as we all need money.” Some sent definite amounts of
money every week to parents or children living away from Washing­
ton. The obligations of others varied in relation to the uneven earn­
ings of their husbands or other members of the family.
RENT COSTS

The average weekly expenditure for rent of the several types of
employees here considered is fairly uniform, owing to the fact that all
wage levels were represented in each class of workers and also to the
scarcity of low-priced housing in Washington. A slightly higher wage
would not make possible a better house. It is significant that a third
of the Negro and almost an eighth of the white resident employees
paid rent. The need for a place to entertain their friends, a place to
go when ill, and a home for dependents are some of the given reasons.
Such rents, however, were the lowest paid by both races.
T a b l e 6. —Average Weekly Rent Expenditure of Domestic Employees, per Worker, by

Employment Status and Race

Employment status

Total
workers

Workers reporting rent
Number

Percent

Average
weekly
rent per
worker

All workers_______________________ _ _ _________

578

416

72

$4.24

White workers__ _
________ . . . ______ - Living in_____
_ _ _ _ _ _ __________ ______
Living out___ _ _ _ _______ ___ _________
Negro workers__
_ ___ _ _ _ ___ _ ___ _ __ __
Full-time, living in___ ______ _ _______ _ ___
Full-time, living out____ _ __________ _ _ _
Part-time__________ _____ _ ____ . . . _____
Day workers____________ _ _ _ --------- . . . ----

64
51
13
514
57
260

18

28

12

97
77
35

4.87
4.05
5.28
4.21
3.64
4.10
3.92
5.06

110

87

6

398
20

228
80
70

12

88

73
80

i Social Security Bulletin, October 1941: Negro Domestic Workers in Private Homes in Baltimore, by
Erna Magnus.


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Monthly Labor Review—February 1942

The average weekly rent per worker ranged from $3.64 to $5.28.
Since the average wage ranged from $6.35 to $9.35, it must be con­
cluded that about half of the earnings of domestic employees is spent
on rent.
FOOD AND CLOTHING

Figures for the cost of food and clothing of domestic workers are
unreliable. Full-time resident workers get three meals a day at the
home of their employers except on their days off. Nonresident em­
ployees, part-time workers, and day workers receive one, two, or three
meals per day, depending upon the hours of their employment.
Among 438 employees reporting on meals, 38 percent received three
meals a day at the home of their employer.
Most of the workers claimed that large proportions of their clothing
were given to them. Their heaviest expenditure was for stockings.
Seventy-two percent of the women receiving under $6 per week spent
an average of $10.11 per year on hosiery and 80 percent of the workers
receiving $11 or more weekly had an average annual expenditure for
stockings of $16.77.
INSURANCE COSTS

The majority of the women here interviewed carried some type of
insurance, life oi burial, accident or sickness. Some policies offered
a combination of benefits, and some women carried more than one
policy. Average weekly expenditures for this security for Negro
workers ranged from 23 to /8 cents and for white employees from 25
to 62 cents. Negroes in the lowest weekly wage group paid the highest
insurance premiums. A larger number of women in the upper wage
levels carried some kind of insurance.
T able 7 .—Average Weekly Expenditures for Domestic Workers in Washington, D. C.,

for Insurance
Negro workers

Negro workers
White,
White,
full-time 1
full-time 1
workers Total
Total Pull time
workers
Pull time
work­
Reg­ Day
work­
Reg­ Day
ers
ular, work­
ers
ular, work­
Type of insurance
Liv­ Liv­ part
Liv­
Liv­
Liv­
Liv­
part
Liv­ Liv­
ing ing time ers ing ing
ing
ing time ers
ing ing
in out
in out
in
out
in
out
Percent reporting weekly expenditure
for insurance
Life__ . . . .
Burial___ ..
Accident.
Sickness
Combined benefits.

57
8

7
14
8

46
4
6

16
12

61
8
8

15
13

67
12

9
16

59

8
10
20
2

41

2

Average weekly expenditure for insurance

46 $0.48 $0.40 $0.45 $0.47 $0.54 $0.62 $0.46
.39
.23
.38
.43
.48
.25
.41
.25
.36
.58
.37
.51
.55
.32
.57
.78
.59
.51
.60
.76

1Averages not presented for 3 white part-time workers and 5 white day workers.


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Woman Domestic Workers in Washington, D. C.
CHURCH AND OTHER MEMBERSHIP DUES

Membership in group organizations such as churches, clubs, and
lodges was a substantial item in the budget of a majority of the
employees. Sixty-seven percent of 514 persons made an average
annual contribution of $11.83 to tlieir church. Often the poorer the
individual, the larger the gift. Membership in some church societies
carried sickness and burial insurance benefits. Lodge dues totaled
about as much as church donations. Seventy-five women spent an
average of $11.48 per person annually for lodge membership. These
organizations also offered some social benefits. Club memberships
were more general than lodge memberships and less costly. Union
memberships were negligible.
T a b l e 8. —Average Annual Expenditures of Domestic ft orkers in Washington, D C.,

for Dues in Social Organizations
Negro workers

Type of
organi­
zation

T otal Full time
work­
ers
Liv Liv­
ing ing
in out

Full time
Total
work­
Reg­ Day
ers
ular, work­
Liv­ Liv­
Liv­ Liv­
part
ing
ing
ti me ers ing ing
out
in
in out

Percent reporting annual expenditure
for dues
Lodge_____
Club______
Church . ..
Union_____
Other_____

13
20

62
2
2

12
2

74
4
4

16
2

70
3
2

Negro workers

White,
full-time
workers

8

25
46

1

4

19
16
70

20

5

2

39

2

Reg­
ular,
part
time

White, full­
time
workers
Day
work­
ers

Liv­
ing
in

Liv­
ing
out.

Average annual expenditure for dues

$11.62 $11.83 $12.04 $11. 50 $10. 53 $11.50
1.64
5.08
5.89
6.83
3.40
5.61
9.98 11.28 12.86 $3’53
23 11.55 14. 54 11.92
3.00
3.00
3. 50 3.07
3.11
2.00
6.68
5. 63
8.96
7.27

Individual Workers
A presentation of the experience of individual workers may portray
more realistically the position and problems of domestic workers.
The stories of regular, full-time domestic employees naturally give
the more accurate concept of the life which domestic work entails.
The part-time worker, however, is such an important factor in the
Washington problem that no local picture is complete without her.
The highest-paid employee covered in the study was a white
woman of English birth who had lived in the United States 20 years.
She had had 15 years’ experience in domestic service, 6 years of
which were in the job she held at the time of the study. She did the
cooking and general housework, the marketing, and the planning of
the meals for a family of two, who lived in an 11-room house. The
family also employed another full-time worker and a part-time worker.
This woman worked 78 hours per week and received $75 per month.
She was given 2 months’ annual vacation at half pay. A private
438471— 42------ 6


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Monthly Labor Review—February 1942

room and bath, and a room in which to entertain her woman friends,
was provided for her at the home of her employer. She preferred to
be a resident worker. Neither she nor her employer carried insurance
for her protection. She paid no rent, but she contributed $200 a
year for the support of members of her family. She spent more than
$125 per year on clothes, but paid no dues for memberships in church,
lodge, club, or union.
The best general conditions, however, for both white and Negro
women were typified by a single Negro woman 28 years old, a native
of South Carolina, who had been in domestic service 9 years and in
her present job for 4 years. Her 12 years in school had included a
course in home economics, and at the time of this interview she was
a student of household arts in a vocational night school. She had
also had 3 years’ nursing experience. Her work involved the cooking,
waiting, and heavy cleaning for a family of two, who lived in a 9 -room
house and who employed two other full-time workers. Her weekly
schedule consisted of 62)2 hours, with 2 free hours each day and 2
half days off each week. She received $15 per week and 7 weeks’
vacation with pay. Her annual income from domestic work in 1939
was $780. Her employer paid for uniforms and some insurance,
required no physical examination, and made no deductions for breakage, tardiness, or illness. This employee lived out but did not prefer
to do so. She paid $7 weekly for rent and gave partial support to
one member of her family. She spent more than $100 per year on
clothes, $14.40 for life insurance, and $16 lodge, club, and church
dues.
The more usual type of worker was represented by a Negro woman
of 26, a native of South Carolina, with 12 years’ experience in domestic
work and 18 months in her present job. She had completed the fifth
grade in school, had had no training for domestic work, and had had
no other work experience. Her work included the cooking, waiting,
heavy cleaning, light laundry, and marketing for a family of five
adults, who lived in a house of 17 rooms and 4 baths. She was the
only employee. Her workweek totaled 79K hours, and her usual 13^hour day included 2 hours on call. She had 2 half days free each
week and 3 weeks’ annual vacation without pay. Her wages were $8
weekly and carfare to and from work. Her employer paid for uniforms,
but made no provision for medical care, payment of wages during
illness, or insurance, and did not require a physical examination nor
make deductions for breakage or tardiness. This worker had no
dependents. She spent $3 weekly for rent, carried no insurance, and
had no memberships in social organizations. Her clothes cost under
$100 yearly, of which $36 was allotted to stockings.
The lowest working standards here reported were those of white
resident employees. Most of the Negroes who were paid $5 or less

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per week lived out, thus avoiding excessive hours of work at night.
The experience of a white woman of 58, a native of Washington, with
6 years of schooling, who had been in domestic service 3 years, will
give some idea of the hardship which some women endure. This
employee did the light cleaning in an apartment of three rooms and
bath, and took care of three children day and night for an employer
who worked in a 5-and-10-cent store. She worked 90 hours for $4
per week. She shared a room with the children and used the family
bath. No uniforms and no physical examination were required and
no deductions were made for illness, breakage, or tardiness. She gave
no report regarding her expenditures. Her meager earnings were her
only source of income, and she tried to supplement her wages by
occasional work at the Washington Self-Help Exchange. She was
seeking other work at the time of this interview.
The lot of the part-time and day workers differed even more
extremely. Some skilled women carried several jobs per week, which
made possible an annual income of $728 and allowed them relative
independence. Some women in order to supplement the family in­
come, held jobs for a few hours per day, which did not monopolize
their strength and time. Others, unskilled and poverty stricken, who
lived in depressed areas had difficulty finding work and earned pitifully
little when they secured jobs.
A typical part-time employee was a married Negro woman 29 years
old, who had completed the eighth grade in school and had had no
special training for household work. She had worked 21 hours a
week for one employer for 4 years. This time was spread over five
afternoons each week, when she did the cleaning and light laundry,
and prepared and served dinner for four adults who lived in a small
apartment. For this she received $7 per week and an annual vacation
of 2 weeks with pay. Her employer also paid her during illness, but
did not furnish uniforms, carry accident insurance for her, or pay her
carfare to work. She required no physical examination or blood test.
This worker gave partial support to one person. Her family rent was
$4.90 weekly. She spent about $60 annually on clothes, of which $14
was allotted to stockings. Insurance cost her $26 per year, church
dues $6, and union dues $3.
The contrast between day workers can be seen in the reports of
two Negro women, 60 and 52 years old respectively, the former a
native of New Orleans and the latter of Prince Georges County, Md.
Neither had gone beyond the fourth grade in school and neither had
studied home economics. Both did cleaning. The former held three
regular jobs which together required 22 hours per week. She re­
ceived 25 cents an hour and carfare. Her annual income in 1939 from
these and other similar jobs was $476. Her employer required both
a complete physical examination and a Wassermann test, but did not

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pay for them. Neither insurance protection nor vacations were given.
She and her husband had no dependents. Their monthly rent was
$14; she was unable to give an account of their other expenses.
The younger woman, had worked for 10 years cleaning Pullman
cars before going into domestic service. At the time of the interview,
she was working 4 days a month at $2 a day of 8 hours, doing the
cleaning and heavy laundry for two men who lived in a six-room
house. This had been her sole job for 3 years, yielding an annual
income of only $96. She walked to work, received neither vacation
nor insurance, and her employer deducted from her wages for illness.
Her constant efforts to secure more and better work had been in vain.
Fortunately, her husband had a good, though seasonal, job. They
rented a house at $30 per month and had no dependents. A life and
burial insurance policy, which she had carried for 30 years, cost $7.80
annually. Her clothes cost less than $35 per year, of which $2 was
allotted to stockings. Her church was her main interest. Her church
dues were $6 annually, and membership in a church society which
provided some social benefits cost $6.
Conclusion
The facts heretofore shown make it obvious why the majority of
domestic employees in Washington are actively discontented with
their work and strive to transfer to other occupations whenever
possible. Under present conditions there is little to guarantee social
security and pride of status in household employment. The complete
lack of general standards for hours and wages in relation to the amount
and nature of work makes any domestic job an uncertainty. Specific
contracts between employer and employee detailing their respective
duties and obligations are almost unknown. Unreasonable demands
and inconsiderate conduct are characteristic of both parties. The
long hours entailed in even the best-paid jobs give the worker scant
time for social life and interests outside her work, and often mean a
life of great loneliness. Household employment carries with it no
provision for social security, and the relatively low wages make
adequate savings impossible. These disadvantages apply to white
and colored employees alike. Although there are more Negroes than
white women in domestic work in Washington (because white women
in this city can usually find other employment), the problems of
domestic service are not problems of race.
The nature of domestic work itself should not repel competent,
industrious young women. Household employment can be more
humanly interesting, more varied, and more creative than the average
factory job. A well-organized home offers to its employees more
pleasant surroundings and a greater sense of individual responsibility

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and importance than the monotonous tasks of industry. Women
working in such homes at good wages and on considerate schedules
take pride in their work and many claim to prefer it to all other occupa­
tions. The problem is one of making these good standards general,
of increasing the minority of contented domestic workers into a stable,
well-satisfied majority.
This goal could be attained if the need for domestic workers in the
homes of the very poor were eliminated. The problem of the under­
paid drudge in households where, for instance, a widowed mother or
both parents have to work all day, leaving the care of the children
and all the household chores to someone to whom they cannot afford
to pay a subsistence wage, is one of the problems of poverty. The
poor and helpless are forced to exploit the still poorer and more
helpless. One solution in these cases is State assistance through a
sufficient number of day nurseries, visiting nurses, and provision for the
care of the aged and the infirm.
The homes of the middle classes and the wealthy will always want
household workers, notwithstanding the increasing mechanization of
housework. Their work should be recognized because of its impor­
tance and the skills required. These skills are arts and should be
respected as such. The belief that any woman can do domestic work
is erroneous.
Both trained workers and trained employers are essential to give
domestic service the standing it deserves. Such training is difficult
to establish in the midst of the continuous need for household services.
A few methods, however, may be suggested. Community schools
using public and private facilities could be developed to train domestic
workers which would grant diplomas, the possession of which would
give confidence to the worker and ensure acceptable work to the
employer. Wages could be graded in proportion to the skills of the
employee. Local boards of home economists, household employers,
and workers might establish standards for wages and hours. They
could also formulate minimum requirements for the living conditions
of resident employees. Such boards might further create advisory
councils where employers could receive help regarding household
administration and employer-employee relationships. Through such
means household employment might become a generally respected
vocation which would attract and satisfy the many women who are
needed in this work.


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INDUSTRIAL AND RURAL WORKERS ON FSA
HOMESTEADS 1
Summary
THE farm security program provides assistance for low-income
workers in both industry and agriculture, to help them to improve
both their employment and their living conditions. The broadest
and most important part of the program is a system of loans and
supervision to enable rural families to rehabilitate themselves economi­
cally. Nearly a million families had received these loans up to June
30, 1941. Able and ambitious tenants and laborers are also enabled
to purchase their own land and thus advance to the owner class.
Also important, but of much less numerical coverage, is the homestead
program, providing land and buildings where industrial and farm
families may get a new start. A system of camps provides temporary
housing facilities for migrant farm families.
Along with all of these goes continuous supervision, advice, and
training in sound farm and home management methods; sponsorship
in obtaining medical care at prices the families can afford; assistance
in techniques of cooperative effort in purchasing of supplies, marketing
of products, and obtaining various services which are out of the
financial reach of individual families.
The most recent features of the program are efforts in relocating
families dispossessed by expanding defense needs and defense in­
dustries and in providing living quarters for workers in defense in­
dustries.
The homesteads, with which this article deals, form one of the most
interesting and well-rounded phases of the entire FSA program.
These homesteads are of a variety of types, including subsistence home­
steads, rural communities, scattered farms, and greenbelt towns. The
first two classes are mainly for industrial workers, low-salaried
business employees, and rural workers. In them the homesteads are
grouped into self-contained colonies, each with its own community
center. Each subsistence homestead is provided with land sufficient
to enable the family to raise part of its food; the rest of the living comes
from part-time work in industry or in agriculture. At the end of
June 1941 the harm Security Administration had under its supervision
3 greenbelt towns and 178 other homestead projects. Of the 30 sub­
sistence homesteads, 6 were designed especially for industrial workers
in natural-resources industries which had been worked out. There
were also 73 rural communities and 75 scattered-farms projects.
1 Second of a series of three articles. For the first article, describing the whole FSA program, see Monthly
Labor Review, December 1941.

360


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In these communities the program attacks four of the problems that
may beset not only the small farmer but the low-income industrial
worker, namely insecurity of tenure, poor living conditions, over­
whelming debt, and poor health. For the small farmer there is also
a fifth: competition from the large mechanized farms.
The homestead program is not by any means a mass attack on the
problems of tenancy or bad rural conditions, for fewer than 20,000
families have been affected. It involves, rather, the use of the
laboratory method to determine the relative effectiveness of various
methods, and the utilization of what has been termed “competitive
competition” to spread the effectiveness of the methods. As one
writer has said, the projects “effectively utilize for progressive ends
the ingrained American impulse ‘to keep up with the Joneses’.
* * * More basically, the projects will demonstrate whether or
not scientific farming methods on small farms under a relatively
rational tenure system can be made to pay out.” 2
Life in a Homestead Community
Although details vary considerably from project to project, the
general procedure and situation of the homesteads is as described in
the following pages.
BASIS OF SELECTION OF HOMESTEADERS

The general requirements governing the choice of the families that
are to participate in a homestead project are good character, need,
and willingness to cooperate. Occasionally, however, a settler is
selected not so much for his own good as because he will be an example
and help to the others.
Persons participating in homestead projects must be married men
with children. They must possess a certain minimum of furniture
and personal belongings. In the case of the subsistence homesteads,
where farming is on only a part-time basis, there may also be certain
cash-income requirements.
The homesteaders selected are generally men in their best working
years—the late twenties, the thirties, or early forties—but sometimes
a family considerably older is admitted. Thus, at Skyline Farms
(Alabama) one homesteader was 80 years of age at the time he was
accepted, and in the Prairie Farms project in the same State almost
all of the heads of the families were over 50. At the other end of the
scale was a young husband at Skyline Farms who was only 17. At
Wabash Farms (Indiana) all the settlers were men in their twenties.
Only citizens are accepted into the projects, but they are of varied
national stock—whatever nationalities are living in the region of the
2 Survey Graphic, June 1939: Homesteaders—New Style, by Charles R. Walker.


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homestead experiment. In the South and Southwest, for example,
the homesteaders are mainly either native whites or Negroes. At
Pembroke Farms (North Carolina) all are Croatan Indians, reputed
to be descendents of native tribes which intermarried with the white
remnants of Raleigh’s ‘ Lost Colony” in the sixteenth century. At
Granger Homesteads (Iowa), where the settlers work part time in
the mines, there is a variety of nationalities—Italian, Croatian, and
mixed nationalities, as well as many of native American stock.
The employment records and agricultural experience of the appli­
cants are carefully examined. Usually some experience in agriculture
is required. Such is not always the case, however. Exceptions in­
clude the projects for stranded industrial groups and some of the parttime farmsteads. Thus, at Pine Mountain Valley (Georgia) 27 per­
cent of the participants had never lived on a farm and 11 percent had
lived there only briefly. Again, most of the families on the Camelback
tract of Arizona Part-lime Farms came, not from an agricultural
background, but from low-paid industrial work or white-collar jobs in
and around Phoenix.
The above cases are rather exceptional. Although it often happens
that the husbands have had a varied occupational experience, agri­
culture is almost always included, and large proportions of the families
are of the sharecropper and tenant class. None of the families in
the Skyline Farms project, for instance, had had less than 5 years’
experience in farming, but most of the husbands had done other
work—lumbering, mining, milling, well drilling, truck driving, and
unskilled labor. Most of them had lived in the mountains for
generations. The homesteaders on the Casa Grande (Arizona)
project were selected from among the homeless, migrant farm families.
Many of them had previously been farm owners and operators who
had lost their land.
There are always many more applications than there are homesteads,
and thus a considerable degree of selection is possible. In certain
projects, however, some or all of the families which had been living on
the land that was purchased for the project were admitted to partici­
pation. The purpose in these cases was to find out “ whether these
run-of-the-mill sharecroppers could make a decent, secure living if
they had a chance under different conditions.”
On several of the Negro, or part-Negro, projects some or all of the
settlers were unselected families already on the site; this was the case
at Gee’s Bend (southern Alabama) and Flint River Farms (Georgia).
At LaForge Farms (southeastern Missouri) the whole group of GO
white and 40 Negro families was already living on the land.


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HOMESTEAD FACILITIES

The size of the homestead to which the family moves depends on
whether only part-time or subsistence farming is to be done (supple­
mented by income from some paid employment) or whether farming
is to be done on a commercial scale large enough to furnish full family
support. If the latter, the area will also vary according to the particu­
lar crops to be planted or the specific use to be made of the land.
Thus, for grazing, a considerably larger area would be necessary
(especially where the grass cover is thin) than would be required for
many truck crops that could be cultivated intensively.
The use to be made of the land and the specific crops to be planted,
as well as their rotation, all form part of the plan formulated for the
family and to which it must conform. It is sometimes difficult,
however, to convince an individual settler of the wisdom of crop
selection and rotation, until he sees from his own experience what
improvements can be made in this way.
With each homestead site are supplied a house and the necessary
outbuildings, these varying according to the particular activities that
will be carried on. Generally these include some or all of the following:
Barn, stable, poultry house, pigpen, vegetable-storage shed, and
smokehouse. Work animals, poultry, and other livestock are also
included.
The dwellings are unpretentious but comfortable and possessed of
necessary conveniences. Nearly all of the rural houses are of frame
construction. In the South the inside walls are usually of vertical
tongue-and-groove sheathing; in the North, of plaster. Northern
houses also have insulated ceilings and weatherboard exterior walls,
because of the more severe weather conditions. Adobe was used in
some of the projects in the Southwest. At Jersey Homesteads concrete
and cinder-block construction was used. A variety of materials was
used at Arthurdale; thus, one group of houses was built of frame,
prefabricated material, a second of frame and concrete blocks, and a
third of stone veneer over frame. At Cumberland Homesteads
(Tennessee) a native stone was used.
Most of the houses have either front or rear porches. Some are
equipped with bathrooms and modern plumbing throughout, whereas
others have sanitary outside privies. All, however, have large work­
able kitchens, and coal or wood kitchen ranges
Where a large tract of land was purchased, it often happened that
erecting new dwellings was more economical than repairing existing
ones. For this reason most of the homestead dwellings and other
buildings are new.


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COST AND METHODS OF CONSTRUCTION

Since the beginning of the program construction costs have been
successively reduced. The highest unit costs were at the first project
undertaken—Arthurdale, W. Va. There the average cost of a dwelling
unit (land, house, outbuildings, land improvement, sewer and water
systems, and overhead) was $8,665. However, it is stated that—
a large part of the expense * * * can be charged to the relief and rehabilitation
aspects of the community. For a considerable period of time, development work
was the only means of livelihood available for a great many of the families.
A large amount of unskilled labor was used. Moreover, as Arthurdale was the
first community of its kind to be developed, it carried a disproportionately large
share of planning and general-development costs necessary to the formation of
these communities. * * * Lower costs would also have been possible if the
Government had left the development of the schools and other community
facilities to the local governments and the residents of the locality.

The methods of construction used have varied from time to time,
according to what aspect of the program appeared particularly im­
portant at the time. Thus, in the early days of the program, when the
depression was at its worst, methods were used which would permit
the use of unskilled labor and would therefore make possible the
employment of the homesteaders themselves. At this stage furnishing
employment, rather than the lowest building costs, was the criterion.
This, however, resulted in unusually high costs per dwelling.
Later, the construction engineers worked out a system of precutting
and prefabrication on a mass-production basis which made it possible
to build sturdy homes for as little as $250 a room. Every unnecessary
feature, as well as those which were purely decorative, was eliminated.
Standard materials and sizes were used throughout. A portable
sawmill at the site cut the lumber, made door and window frames,
and even forms for pouring concrete foundations. Under this system
unskilled relief labor could still be used, but the cost was reduced
considerably. Wherever it was possible to do so, the labor of the per­
sons who were going to live in the houses was used to build them.
The cost of the entire homestead (including land, house, outbuild­
ings, and utilities) has ranged from nearly $9,000 to less than $3,000.
House costs alone have swung in a narrower range. Thus, at Truman
Farms (Arkansas) a 4-room house averaged only $1,270, and at Casa
Grande (Arizona) $2,713. At LaForge Farms (Missouri) the average
cost of a 4-room house was reduced to $1,100, “ believed to be the
lowest cost at which comparable houses have ever been built in this
country.”
RENTALS, AND PURCHASE TENURE

Tenure may be on either a rental or purchase basis. Generally,
the homesteader is given a lease when he takes possession of his new


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dwelling. If and when he proves his ability to run his place efficiently—
ordinarily within a period of 3 to 5 years—he is usually given the
opportunity to buy it.
A settler who qualifies for the purchase of his home may buy it over
a 40-year term. Purchase may be either directly from the Govern­
ment or from the community association. Monthly payments vary,
of course, according to the total cost. At Prairie Farms (Alabama),
for instance, the homesteader pays a yearly average of $145.97 (cov­
ering rent, amortization of principal of rehabilitation loan, and a de­
posit on the purchase price of the homestead) plus $18.49 in taxes
and insurance. The monthly payment thus averages $13.70. At
Longview (Washington) the monthly payment (all costs) averages
$17.55 on a homestead costing about $2,915.
Rents vary with type, size of dwelling, and the families’ ability to
pay. At the Chandler section of Arizona Part-Time Farms the rent
for an apartment of 4 rooms and bath averages $9 per month; in the
Camelback section the rents range from $20 to $23 per month for 4-and
5-room stuccoed adobe houses. At Casa Grande (Arizona) the rents
are $10, $12, or $14 per month for houses with 1 to 3 bedrooms,
screened porch, modern plumbing, electricity, and rock-wool insula­
tion. At Irwinville (Georgia) the average rent is $140 a year for a
typical farm unit of frame house with porch, barn, smokehouse,
poultry house, and land. The subsistence homesteads at Granger
(Iowa) rent for from $13.96 to $18.50 per month for a house with mod­
ern plumbing and equipped with hot-air furnace and hot-water
heater. At Arthurdale the subsistence units range in rent from $8 to
$11 per month.
SOURCES OF CASH INCOME OF FAMILIES

In the great majority of cases farming (either individually or jointly
on a cooperative farm) forms the source of livelihood.
A homesteader on an individual farm is an independent entrepre­
neur, running his farm (though, necessarily, according to the pre­
determined plan), harvesting his crops, and receiving the proceeds of
their sale.
In some of the projects where there are individual farms there may
also be a community farm worked for the benefit of the whole group.
At some other developments the whole tract (aside from the space set
aside for kitchen gardens) is worked cooperatively as one big farm.
All or part of the land at the Lake Dick (Arkansas), Flint River
(Georgia), and Osage (Missouri) projects is worked on this basis.
On the cooperative farms, no homesteader works on his individual
account. The whole working group is divided into sections and each
man is assigned where he can work most efficiently. The family heads


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work on a day-wage basis, at the prevailing local rates. When the
crops are sold and a settlement is made, the members vote as to the
disposal of the earnings. Amounts are set aside for taxes, insurance,
depreciation, and repayment of the capital loan; also, a certain amount
is retained to finance the next year’s operations. Any amount remain­
ing may then be divided among the working families, prorated accord­
ing to the days’ work done by each, or the members may decide to
use it for expansion of existing facilities or acquisition of new ones.
The cooperative type of farm has been resorted to in areas where
large-scale farming so predominates that the small farmer is at an
extreme disadvantage. By adopting the cooperative method, econ­
omies in number of animals and buildings are possible, as well as a
greatly increased use of machinery.
At Flint River Farms, which is a combination of individual and
joint enterprise, it has been found that through selection and varia­
tion of crops it has been possible to “lower the labor peaks and fill
in the low spots, so as to provide more than twice as much labor for
the residents as they are able to find when working as harvest hands
and day laborers on neighboring plantations. * * * At the same
time, because of the coordination between the crop program and the
labor supply, enough time is left free for the individuals to take care
of their family animals and their own gardens through the growing
season.”
Even in projects for industrial workers, work with the soil, even
though [jit may be only in a kitchen garden, is depended upon for
at least a part of the family subsistence. It sometimes happens also,
that gardens that were at first only of subsistence size gradually be­
came a source of cash income as well. Thus, at Granger Homesteads
the settlers are coal miners whose work is seasonal, slackening off in
April and becoming active again in September; the slack season there­
fore dovetails neatly with the gardening season. The homesteads
have helped to increase the family income considerably. Even during
the drought that occurred the first year, the gardens increased the
average family income by $69. Each succeeding year the extent of
the gardening was widened. Then a cooperative association was
formed, interest in which stimulated agricultural production beyond
subsistence needs. During its first year of operation, seed, fertilizer,
and feed were bought cooperatively through the association. Later,
surpluses of garden produce were pooled, pressure cookers were ob­
tained, and the vegetables were canned. So good was the resulting
product that it found a ready sale in Des Moines at premium prices.
The proceeds were sufficient to pay market price for all the produce
the members had furnished, plus 15 cents an hour for the canning
work done. Encouraged by this, the women obtained small individual


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loans which they pooled, buying out the equipment of a closed cannery
whose operation they have continued ever since.
At Skyline Farms hogs and poultry have been developed as a source
of cash income as well as of food. A sirup plant started there has
encouraged the growing of cane and the product (produced by a new
method) commands a good price.
Other sources of supplemental income have been found in other
homesteads. Thus, on one project the women undertook the produc­
tion and curing of medicinal herbs. Although at first not on a
sufficient scale for commercial sale to drug companies, the beds are
to be increased to commercial size.
Weaving of home furnishings, articles of clothing, etc., both for the
families’ own use and for sale, has been done in several projects.
Paid Industrial Employment

Many of the subsistence-homestead projects are near industrial
centers where full-time or part-time work can be found at least during
part of the year. Community projects where only part-time farming
is done are generally situated in a district where the settlers former
sharecroppers or farm laborers—can get work on the large local farms
outside the project.
In some cases at least part-time industrial employment in the lines
for which the settlers were trained was available in nearby towns.
Thus, one subsistence-homestead project was undertaken to provide
housing and part-time gardening for a group of low-income workers in
a local seasonally operated food-packing plant. Three projects (in
Kentucky, Mississippi, and Wisconsin) were undertaken as part of a
reforestation program. In these there is a combination of part-time
farming, grazing, and reforestation work, with supplementary income
from forest products. In several other cases paid employment was
not necessary, for the participants were retired persons having small
means of their own or were pensioners in the fixed-income groups.
The furnishing of employment within the community has, from the
first, been one of the most difficult problems. It was planned, at the
beginning, to start new industries which would be manned and
eventually owned by the colonists. This plan was vetoed by Congress
on the ground of competition with established private industry.
Several of the projects had been planned and-started on the projectindustry basis, and therefore in the selection of the site the proximity
to sources of paid outside employment had not been a factor. In such
cases, and in the stranded-groups projects, the job problem has been
particularly acute. In 5 of the 6 stranded-groups projects, the settlers
were mainly coal miners and sawmill workers; the sixth was for a
group of workers in the needle trades. The settlers were skilled work-


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Monthly Labor Review—February 1942

ers in their trades but their industry had disappeared. In any other
line of work they were unskilled and would have to be retrained.
The results have not been particularly satisfactory. At Arthurdale,
W. Va., and Hightstown, N. J., one industry after another has been
tried—on both the cooperative and private-lease basis.
The plan now used by FSA is to invite private industries to establish
a branch at the project. In such cases a cooperative association is
formed by the settlers to which the FSA makes a 40-year loan to
provide a building and equipment. The cooperative association and
the private company hold shares, in about equal proportions, in an
operating corporation created for the purpose of supervising the
operation of the plant. Management is supplied by the private
company. The cooperative association gives the operating corpora­
tion a 45-year lease on the plant, at a specified yearly rental sufficient
to cover taxes, maintenance costs, depreciation, insurance, and
amortization payments, plus 3 percent interest on the Government
loan. Under the contract the workers receive as wages the first 20
percent of any profits that may be made by the plant. The remaining
80 percent of profit is shared between the company and the cooperative
association in proportion to their shareholdings in the operating
corporation. Of the cooperative’s share, however, all but 5 percent
must be applied toward payment of the Federal loan until it is all
repaid.
At present, hosiery mills are in operation in five projects, a pants
factory at a sixth, and a woodworking plant at still another. Some
indication of the proportion of homesteaders employed is given in
the accompanying table which shows, for each enterprise the number
and percent of settlers employed in September 1941 (a typical month),
and average per capita earnings in that month.
Employment and Earnings in Industrial Enterprises at FSA Homestead Projects,
September 1941
Settlers employed
Project

Skyline Farms, Scottsboro, Ala
Bankhead Farms, Jasper, Ala
Penderlea Homesteads, Burgaw, N. C_ _
Westmoreland Homesteads, Mount Pleasant, Pa
Cumberland Homesteads, Crossville, Tenn
Red House, Eleanor, W. Va
Tygart Valley Homesteads, Dailey, W. Va

1 More than 1 employee per family.


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Kind of plant

TTosiory mill
_ do
__do
Pants factory___
Hosiery m ill____
do
Woodworking
plant.

Num ­
ber
50
65
83
320
84
97
171

Average
earnings
Percent
per
of
worker
total
in month
families
27.6
65.0
42.6
i 125. 5
32.1
64.7
87.7

$84. 65
80.55
83. 57
90. 75
93.99
88.46
■97.10

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Although there is some seasonality, the mills generally operate full
time when open. The above earnings therefore represent full-time
earnings for the persons employed in September. Since the silk­
freezing order of August 2, 1941, the hosiery mills in these projects
have, like those elsewhere, been somewhat slowed down by difficulty
in obtaining supplies.
AtHightstown the garment factory, run on various plans, failed in
all, largely because of inexperienced buying and because of inability
to market the product. The factory building is now leased to a
private hat manufacturer. No data are available as to earnings.
At Arthurdale, the industrial plant on the project has been leased
by a private firm which will employ the homesteaders in the manu­
facture of furniture and radio cabinets. Portable sound equipment
will also be manufactured at Arthurdale. Another new industry at
Cumberland Homesteads is a furniture factory. There is a pectin
plant at the McAllen project in Texas.
" l i v e -a t -h o m e ”

plan

Every homestead family must accept and conform to the “live-athome” program, which generally involves a radical change from
previous habits.
It has been the common practice for sharecropper and tenant to plant
every foot of soil to cotton or some other cash crop and depend for
the family’s food on what could be bought at the plantation com­
missary or other local store. This resulted in the family’s complete
dependence on the results of the cash crop. If it failed, the family
was destitute, being dependent on what local credit it could get—
at high rates—or upon relief. The whole situation formed a vicious
circle—poor crops, causing a burden of debt, which led to more and
more restricted diet, leading to poor health, inability to work at top
efficiency, with the result of poor crops again, etc.
It is this situation that the “ live-at-liome” plan is designed to help.
Briefly, it means that a definite part of the homestead land must be
planted to vegetables and fruit for the family’s own use. Chickens,
pigs, and cows (purchased with the FSA loan) add dairy and meat
products to the menu. Finally, a minimum of 80 quarts for each
family member must be canned for winter use.
What the family needs in milk, eggs, meat, and vegetables is care­
fully worked out by the home supervisor and the housewife at the
beginning of each year. The garden is planted accordingly. Chickens
and eggs can be exchanged at the local store for coffee and sugar.
In addition, every plan involving commercial farming carries two
other requirements: The development of at least two farm enter­
prises (crops, livestock, poultry, etc.) that will produce goods for
market: and the adoption of methods that will build up the soil.

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These requirements attack the three main causes of failure of farm
families: Dependence on a single crop, the purchase of the family’s
food, and the impoverishment of the soil.
Under the FSA plan, even though the cash crop may fail there is
food for the family and for livestock. Through the development of
several cash crops, the risk of a poor market is lessened. Rotation
and variation of crops, the planting of legumes, and terracing result in
building up the land which is the homesteader’s chief asset.
It is pointed out that the increased production does not lead to
increased agricultural surpluses. On the contrary, the live-at-home
plan means that a considerable part of the acreage is transferred from
the raising of cash crops to the raising of the foods, such as milk, eggs,
and vegetables, of which these families have never had an adequate
supply.
The part-time, industrial families on the subsistence homesteads
benefit from the live-at-home plan as much as do the farm families,
for since only part of their livelihood is earned in paid employment,
the greater self-sufficiency the family can attain in food from the land
the more secure its position.
CONTRAST OF PAST WITH PRESENT CONDITIONS

Dietary Habits and Standard of Living

Contrast of present conditions with those from which many of the
families came indicates the remarkable advance in living standards
that participation in the program has entailed.
At LaForge Farms, for instance, most of the homesteaders lived
previously in one-room shacks with no conveniences whatever. Their
living standards were barely above the starvation level. The families
were moved into 4- and 5-room frame houses with double floors, builtin cabinets, and screened doors and windows; a sealed well, foodstorage vaults, and sanitary privy were also provided. “ The flyinfested tables, the piles of dirty bedding next to the stove” became
things of the past.
In many cases running water and sanitary conveniences were previ­
ously unheard of, as were also screens for windows and doors. In
fact, windows themselves were often lacking, the only light and air
being obtained through the door.
Another group of homesteaders—-migrant laborers—had lived
under conditions of “ unimaginable squalor.” In one case eight fam­
ilies were living in one dilapidated shed with dirt floor, divided by
wire-netting partitions into compartments 18 by 24 feet. A “ sem­
blance of privacy” was obtained by pinning cardboard and newspapers
on the netting. Other families were living in shacks made of flattened
tin cans, discarded iron sheeting, odds and ends of boards, etc.

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It is evident therefore that in many cases the living quarters on the
project represent the first time the family has ever been decently
housed.
Never having had conveniences and appliances, the families have
to be shown how to use them and care for them. Articles that are
commonplace to families of higher income level are new and strange
to many of the homesteaders. At one project it was commented that
the women, never having had closets—nor, indeed, any surplus cloth­
ing or other articles to put in them—had to be shown what they
were for.
Having lived for untold years on “ corn pone, sow belly, and dried
beans,” they had to learn to like the new vegetables and fruits that
they raised in their gardens. As many as 10 new garden commodities
were added to the diets in some cases. Once having acquired the
taste, however, and having seen wdiat variety and interest—as well as
what dividends in terms of health—-could be added to the family
table, the women begin to take more and more pride in their culinary
achievements. Recipes are exchanged and problems discussed.
“ Hardly a house is without its pressure cooker” in which to put up
canned stuff for the winter. Eventually their shelves yield many
more than the required 80 quarts per capita.
Even though the cash income of the family may still not be large,
these homesteaders are living well and on a plane well above what most
of them had previously experienced. One instance will serve as a
case in point: An economist who visited a number of the projects was
invited to dinner with a homestead family. The meal consisted of
hamburger steak with onions, gravy, hot biscuits, butter, string beans,
spinach, plum jelly, salad, baby pickles, preserved peaches, and coffee.
“ Everything but the coffee, sugar, and salt had come off the place.
From purely utilitarian matters the women advance to the decora­
tive. Ruffled window curtains, potted plants, flower gardens, lawn,
and shrubs make their appearance. One reporter noted that: “ The
women at Roanoke discuss their yards with the competitive enthusiasm
of a suburban garden club.”
Given a start, the families find latent talents within themselves.
They devise ingenious uses for such materials as they have at hand.
They try their hands at making household and farm commodities.
Thus one group made its own looms. In other cases, hinges for gates
and doors have been made from old automobile casings, wagons from
the chassis of old cars, furniture and toys from orange crates and other
material, and mops and brooms and chair bottoms from cornshucks
and brush.
3 Free America, April 1941: From the Lower Depths, by Stuart Chase.

438471— 42

■7


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One client * * * had no water in his house or barn and a nearby spring
was unsuitable for piping to the buildings. He dug another spring large enough
and of an elevation high enough to furnish an adequate supply. This necessitated
digging a ditch approximately 400 feet long and laying the pipe, which he did
without assistance of any kind. Not only did he accomplish this but he also
successfully installed water in both house and barn. With no experience in
plastering, papering or painting, this family renovated three rooms, completely
changing the appearance of the place and making it a cheerful, pleasant home in
which to live. The effect of these changes has resulted in marked improvement
in the family’s outlook on life.

In short, these families learn to rely upon themselves, to plan ahead,
and to carry out these plans. As one FSA employee put it, “ The
transition is in itself a process of education for them.”
Possibilities for Learning

It may be said that the whole process of life in a homestead com­
munity is one of learning, through both formal and informal methods.
At every step in following out the homestead plan the farmer and
his wife receive instruction, advice, and assistance from the Farm
Security Administration. Most of the farmers have had no formal
instruction in improved farming methods, and at best their experience
has been of limited range; indeed, some of them have simply followed
their fathers’ age-old ways. From the FSA supervisor these small
farmers obtain technical help they could get nowhere else, for research
in large-scale commercial farming is of little help to them.
They learn the proper rotation of crops, times and methods of
planting and harvesting, use of strip and contour planting, use. of in­
secticides, etc. In short, they learn sound farm practice in all its
branches. The leasing period of 3—5 years during which they are on
trial, as it were, also constitutes a course of training which each home­
steader utilizes according to his natural endowments.
In many of the projects special classes are given in a number of
practical farm subjects, which the homesteaders may attend; or the
farmers may gather informally in little groups (with or without the
attendance of the FSA supervisor) to discuss special problems.
While the head of the family is receiving training in farm manage­
ment, his wife is learning how to make and repair the clothes, use a
piessure cooker, can vegetables and fruit, and prepare the family’s
food in the best ways. A home economist shows her how to prepare
balanced diets, do gardening, and make mattresses and small pieces of
furniture as well as other items of household use.
Increases in Assets

One of the most remarkable evidences of the families’ new status
lies in the increases in their assets. At Flint River Farms (Georgia)
the net worth of the families increased from $78 to $300 in the first

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year. At Irwinville (Georgia) the net worth increased from $77 to
$778 during the first 3 years. By the end of 1938, the 28 families which
had been in the project since 1935, had increased their assets by $909,
or to $1,258.
When the LaForge Farms (Missouri) project was started in 1937,
the entire possessions of the average family—furniture, clothes, farm­
ing equipment, livestock, and food in the pantry—averaged only $28
in December 1937. At the end of 2 years the families, in addition to
meeting their loans and obtaining a living by their own efforts, had
increased their average gross worth to $1,474.71 per family.
At Osage (Missouri) the average total income of the families during
the crop year 1939-40 was estimated at $1,142. Of this, $588 went
for farm expense, $350 for cash expenses of the family, and $150 on
the Government loan, leaving a cash saving of $54. This was an
average saving; the largest was $541 made by a man whose assets
when he had moved onto the project a year before had consisted of 1
horse, 2 cows, 3 heifers, and $46 worth of tools and household goods.
When this man came to Osage his assets totaled $487 and his liabili­
ties $110; a year later his assets totaled $2,208 and his liabilities $1,289.
His net assets had thus grown from $377 to $919.
COMMUNITY ORGANIZATION AND ACTIVITIES

In projects where the title to the land is still held by the Federal
Government, the latter makes payments to the local authorities, in
lieu of taxes, from the rent receipts. In return the community receives
the police, fire, and school service furnished to the other towns in
the area. When the property is sold to the homesteaders, the land is
taxable; when conveyed to a homestead association, payments are
made in lieu of taxes.
In a growing number of community projects the title to all the
land and improvements has been turned over to a homestead associa­
tion of which each family is a member. This association is respon­
sible not only for the financial arrangements—collecting the payments
from homesteaders, paying community bills, etc.—but also for the
maintenance of the colony. This is done by a board of directors
consisting of three elected homesteaders and two FSA representatives.
The greenbelt towns are incorporated as villages. Greendale, Wis.,
and Greenbelt, Md., have the city-manager form of government.
Greenhills, Ohio , is governed by a mayor and the usual village officials.
The same arrangement is also found at Jersey Homesteads which is
incorporated as a borough under New Jersey law. Its governing
body elected by the residents consists of mayor, councilman, justice
of the peace, clerk, assessor, collector, and treasurer.


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Thus, in the homestead projects each family participates as voter
and former of policies, not only as regards the immediate actions in
the homestead but in the community affairs.
One of the greatest advantages accruing to the homesteaders is to
be able to participate in a normal community life, to achieve status in
their own eyes and that of others, and to acquire a sense of “belong­
ing” and of being needed. Many of these people have come from such
a low stratum that they have never before had these satisfactions;
others have not experienced them for years.
A study of various projects, made over a period of time, indicated
that at the beginning there was some feeling of inferiority and dis­
trust of neighbors.4 The hardships, poverty, and frustration
which the families had undergone prior to their acceptance into the
project had “destroyed their faith in themselves, their initiative, and
their hope for a brighter future.” The report notes that, to the
supervisors who have been in contact with the homesteaders from the
beginning, the change in their mental attitude “has been the most
important and striking accomplishment effected.”
Each of the homestead communities has a community center in
which the homesteaders may create their own diversions and carry
on community activities. These activities are generally both educa­
tional and recreational. At a typical project there may be a parentteacher association, small community clubs which meet informally
and conduct their own programs, evening classes for adults in keeping
of records, arithmetic, farm and homemaking methods, and groups
lor discussion of special problems of individual members. A special
“community-night committee” plans games, dancing, and other
entertainment. Interdenominational religious services are also held
in the community center.
One project has a home improvement club which meets in five
sections once a week and has a combined meeting once a month.
Its work is a “combination of the health, education, home supervisor,
and home economist activities.”
In another project, many of the activities of which are organized
on a cooperative basis, the cooperative association has standing com­
mittees on adult education, young people’s work, Federal, State, and
county relationships, homestead welfare, social and recreational de­
velopment, fire prevention, roads, and homestead clean-up.
Other projects carry on special classes in crocheting, knitting,
sewing, craft work, weaving for the women, and various farm subjects
for the men.
4 United States Department of Agriculture. Bureau of Agricultural Economics and Farm Security
Administration cooperating. Five Hundred Families Rehabilitate Themselves, By Conrad Taeuber and
Rachel Rowe. Washington, 1941, p. 18.


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In several places the housewives have pooled their small individual
contributions and pay the transportation charges on books from a
State or other public library. Eventually, by donations and purchase,
they amass a library of their own.
Even on scattered-farms projects, and where a rehabilitation project
has covered a whole county, some community activity is possible.
Thus, in Greene County (Georgia), community singing undertaken
experimentally met with instant and general acceptance and developed
eventually into a county-wide singing pageant in which groups from
each community participated. As a result of the widespread interest
a full-time recreational leader was appointed for the county 1 and
organized recreation is now a permanent part of the unified county
program.”
Local Standing

The communities have had to prove their value, for often the othei
residents of the area looked upon the whole experiment with distrust
and suspicion. That they have won their way is evidenced by the
increasingly cordial social intercourse that now goes on between the
homesteaders and the people of neighboring communities. The
neighbors take part in many of the project affairs and the home­
steaders likewise participate in the life of the larger community. A
few of the colonists have even received the recognition of being chosen
for positions of leadership and trust in the larger community. Thus,
a member of one project was asked to run for justice of the peace of
the county and in another a homesteader was elected to the school
board. Several women are doing leadership work in local clubs.
Young People on the Homesteads

The young people of the homestead families—their training and
their future—constitute a problem to which much attention has been
given.
The homestead program provides for the parents and the young
children. Many of the families, however, have half-grown or fullgrown children and each year the total number of young people in
the communities increases. However the homesteads are too small
to furnish either work or support for so many workers. For at least
half their time there is nothing for these young men and women to
do. Therefore unless some means of training is devised which prom­
ises a future, the cycle from which the parents were rescued will
repeat itself and the children will revert to the migrant and tenant
army from which the parents have come.
A special effort has therefore been made to impart skills which will
bring in cash returns. A typical project in this respect is Flint River
Farms, Georgia. There the boys are taught proper farming methods,

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Monthly Labor Review—February 1942

stock feeding, poultry care, and other sound farm practices. The
girls learn canning, gardening, and cooking, besides weaving rugs and
making dresses, apions, and shirts for sale. In an NYA project both
boys and girls are learning how to weave and make mattresses. The
boys have done some machine building and furniture making for the
community center.
These young people learn how to handle livestock; how to use
machinery and to care for its maintenance and repair; how to in­
stall, use, and maintain household equipment; and conservation of
land. In shoit they obtain an all-round knowledge of the various
phases of farm and home management.
At the same project a “training farm” is being operated. On this
farm 40 young Negro families—those of sons and daughters of the
homesteaders—are receiving good farm training. The tract of 1,800
acres is operated as a single cooperative unit, except that each house has
3 acres of land for a kitchen garden, poultry yard, etc. All of the
land development (road construction, terracing, draining, and fencing)
has been done by these young people under the instruction of the farm
manager. The whole training project received a loan which is to be
repaid, from the farm proceeds, in 40 years with interest at 3 percent.
It is expected that after 3 to 5 years’ experience and training here,
the young families will leave to take up land outside the project as
tenants or owners. “Under average conditions, a family on this
plantation should be able, in 5 years’ time, to pay for all of its house­
hold furniture and equipment, build up an ample supply of food, and
accumulate cash savings of about $250.”
Representative Homestead Projects
Below are described several individual projects selected as repre­
sentative of the various types of homestead developments.
SKYLINE FARMS (ALABAMA)

Skyline Farms is an example of a community hewn out of a wilder­
ness by the settlers themselves. It represents a combination of sub­
sistence homesteads and full-time farming.
Most of these families had either been on relief or were on the verge
of it. Consequently, the furnishing of employment was one of the
objectives of the project. Specifications were drawn for the houses,
but as little cash was at first available for building supplies the situa­
tion was one that called forth all the native ingenuity of the people.
Fortunately, the region was rich in forest resources as well as deposits
of limestone, silica, and rock for road construction. The lumber was
cut from the oak, poplar, and gumwood trees, at a sawmill borrowed


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for the purpose. To obtain nails, windows, etc., excess lumber and
stone was bartered.
The houses, necessarily of simple design, ranged in size from three
to five rooms. Each house was equipped with cooking range, kitchen
sink, cabinets, icebox, and screened doors and windows. In each
homestead unit were included a sanitary privy, a barn, smokehouse,
pigpen, poultry house, fences, and orchard trees. Individual wells
supplied the water.
About 25 miles of road were built and surfaced with crushed rock
from the tract, and 8 miles of already existing county road were
improved.
Of 181 homesteads, 18 are of “subsistence” size, ranging from 2 to 12
acres and renting for from $4 to $10 per month. The others are
family-size farms of about 40 acres, renting for from $40 to $100 per
year. Some of the farms have been sold to the settlers (average
price, $2,662) on 40-year contracts and the others will eventually be
sold.
This project, in addition to raising vegetables for home use, has
specialized in truck farming. Contacts have been established in
nearby cities and some produce has been sent as far as Ohio. In
addition sugarcane is grown, processed in the community’s own
sirup plant, and sold at good prices.
In this as in other projects the settlers have considerably increased
their assets through the operation of cooperative enterprise.
Some paid employment is supplied to the subsistence homesteaders
by a hosiery plant established there by a well-known company.
The settlers own 49 percent of the operating company that was formed
to run the plant.
CASA GRANDE VALLEY FARMS (ARIZONA)

This project was started in an irrigated desert region where a
process of concentration of farming had been going on for 20 years
or more, so that large-scale farming was the rule. Against this
mechanized agriculture small farms were at a great disadvantage,
and many of these farmers had been forced into the tenant or laborer
class. In view of the local conditions, it seemed desirable to make
the project conform to the general local pattern. The development
was therefore planned as a large-scale group operation.
By operating the tract as one unit, only one set of buildings was
necessary for the farm, instead of individual buildings for each family;
and a much smaller number of work horses, etc., was necessary.
The 60 houses, each with a large lot, were placed along the main
road through the project. They rented for $10, $12, or $14 per
month according to size—3, 4, or 5 rooms.


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To operate the project the residents formed a cooperative associa­
tion-one membership to a family—in June 1937, obtained a loan of
$173,288 from FSA, and began operations in March 1938. A manager
was appointed by the members from their own number and was
made responsible to the elected board of directors. Other elected
residents served as crop foreman, mechanic, dairy foreman, poultryman, irrigation foreman, gardener, and hog foreman.
The charter of the cooperative empowers it to engage in any coopera­
tive enterprises relating to the growing, processing, and selling of
agriculture products. It rents the land from the Government at a
price equivalent to the current market price of 25 percent of all
crops produced on the cooperative farm, and (for the alfalfa and
pasture land) $6.93 per acre. Should the rental for the farm land
work out to a sum in excess of $8,324.53 (set as the minimum neces­
sary to cover taxes, insurance, and maintenance) plus 3 percent on
the appraised value of the property, the excess is set aside to cover
deficits of bad years. The rental payments cover the basic house
rent as well as that of farm land and buildings. Rental of the land,
title to which is retained by the Government, is on a long-term
flexible basis which permits the cooperative to adjust its payments
to crop conditions.
The cooperative has purchased trucks, farm machinery, and live­
stock for the place. It maintains a 15-acre community garden of
row crops (beets, carrots, cabbage) which are distributed free to the
member families. In addition each family has its own kitchen
garden in which other vegetables are grown.
The family heads normally work full-time on the cooperative farm
which is entirely mechanized. Also, they care for all of the ma­
chinery in the repair shop.
The first year (1938) the crops brought in $7,700 in excess of ex­
penses. The next year a water shortage throughout the entire
valley reduced the net profit to $1,513, but since that time the farm­
ing venture has been eminently successful.
The earnings from the farm have been increased by savings effected
in the cooperative purchasing of supplies and cooperative marketing
of the products. By being able, for instance, to ship a carload of
hogs at a time the homesteaders effected a saving (in lower freight
rates and in selling in the terminal market with higher than the
local prices) of 10 to 15 cents per hundredweight.
A central community building houses an auditorium, a fully
equipped kitchen, and sewing rooms. It is the center of all colony
activity. Here are held the quarterly meetings of the cooperative
board and the monthly meetings of the directors, as well as religious
services, social meetings, demonstrations, sewing circles, and various


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kinds of classes. There is a NYA-WPA nursery school on the project;
the older children attend school in a nearby town.
Instruction is given in home economics by the Extension Service
and the FSA Home Management Division. A 4-H club provides prac­
tical instruction in agriculture and homemaking. The Community
Builders Club—an organization of young people—sponsors parties,
dramatics, etc., and cooperates with outside religious and civic groups.
g e e ’s

BEND FARMS (ALABAMA)

One of the projects most interesting from the point of view of
type of participants is the Gee’s Bend project. This is one of the
all-Negro projects.
The land involved in this development is a small peninsula made
by a twist in the Alabama river. It was formerly a rich plantation
worked by slaves and later by Negro freedmen, but the white owners
had long since left and since 1900 the Negroes had rented the land
and farmed it themselves.
Almost entirely cut off from the world, these families—about 100
in number—had a self-sufficient life of their own. Some of the older
people, even today, speak a dialect (probably an African one) that
outsiders cannot understand. Until the depression the com­
munity went along smoothly, growing its one crop—cotton—at
fairly good prices, getting the necessary “furnish” from a merchant
in a neighboring town, and making “a mildly profitable living.”
Even after the depression struck, the merchant gave the families
credit for 3 successive years, although the crop could not be sold for
enough to cover his advances. Then he died in 1931 and the admin­
istrators of his estate seized every piece of movable property in
satisfaction of the debt.
With assistance from the Bed Cross and public relief, the families
managed to keep alive during 1932 and 1933 but had no tools to
work their farm or seed to plant. In 1934 Federal and local loans
enabled them to start farming again. In 1937 the Government
bought the land and created a homestead project.
Since then a rapid change has taken place in the community pattern
of life. Crops and diet have been diversified. New simple frame
houses have been built “with screened windows, and tight walls and
roofs—all novelties at Gee’s Bend.” From the public health nurse
the families have learned personal hygiene, home cleanliness, and
how to care for the sick. From pooled contributions from all the
families the home calls of two county doctors are paid for and a weekly
clinic is held.
An inexpensive frame building forms a community center, with
grammar school, health center, store, warehouse, and blacksmith

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shop. There is also a cooperative association which runs a cotton
gin, operates the store and a grist mill, and owns the plowing and
haying equipment and purebred sires. This association does the
purchasing of seeds, fertilizer, and other farm supplies and markets
the farm produce through a special department. In 1938 the associ­
ation showed a net gain of over $400, in 1939 of $1,228, and in 1940
of $1,305.
The families, now renting their places, will begin buying them as
soon as they have demonstrated their ability to carry the load. The
problems are not all solved but, according to report, “for the first
time in a generation, Gee’s Bend is climbing upward, instead of
sliding down.”
OSAGE FARMS (MISSOURI)

Osage Farms represents a combination of 36 individual farms and
2 large tracts farmed cooperatively.
Each of the two cooperative farms is organized as an independent
enterprise, with a Government loan to finance the purchase of machin­
ery and livestock and to cover operating costs. These farms are run
in the most modern and efficient way.
On the Bois d’Arc farm 24 families and on the Hill View farm 9
families reside. The labor of these people is highly specialized, the
various ones being detailed to certain specific jobs, as care of the
chickens, hogs, cows, etc. Work in the fields is shared by all. A
manager runs the whole farm under the general direction of a board
of directors elected by the settlers from their own number.
Accounts are kept by the settlers for each individual enterprise
carried on, and the person in charge of each is responsible to the whole
group for the results.
The nine houses at Hill View (each with sufficient land for a garden)
are grouped together, being supplied with water from a common well.
At Bois d’Arc six of the houses are grouped in the vicinity of the
dairy and poultry enterprises. The others are scattered in twos and
threes over the farm tract.
The colony created a place for itself in the area from the start.
Not only do the settlers participate in all of the homestead affairs, but
they take part in local meetings and social affairs in the surrounding
region. Stock shows, dramatic contests (in one of which Bois d’Arc
families took second place) 4-H activities, and baseball are some of
the events participated in. A fair sponsored by the Osage families
developed into a county-wide affair.
Within the project a library has been started, various cooperative
enterprises provide service of numerous kinds, and all participate in
the county-wide health association.


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In spite of a hailstorm that wiped out or damaged the soybean and
corn crop of a number of the individual farmers the first year, nearly
all finished the year “in the black.” The Bois d’Arc cooperative farm
declared dividends (in addition to wages already received) amounting
to about $90 per family. This was net, in addition to shelter and food.
Difficulties Encountered
Certain difficulties are inherent in the human material with whom
the program deals. The homesteaders are of all degrees of intelligence
and education. At one project practically all were illiterate. At
others the groups have ranged all the way from college graduates to
those with no schooling whatever. Some groups, such as the Lake
Dick group, were rather above average in both intelligence and train­
ing. Each project has to feel its way, going only as fast as the
understanding of the participants can be developed. All projects
have had their share of difficulties from weather and other natural
conditions.
Other difficulties have been the age-old habits of superstition and
ignorance both in daily life and in agriculture. It is not easy to get
the settlers to change their dietary habits or to adopt new ways of
farming. However, much can be done by example and once they
have had a chance to see the results of improved methods they are
generally eager to follow.
Misunderstandings and dissatisfaction occasionally arise. Some of
the homesteaders grow dissatisfied, or rebel against supervision and
leave the project. Some fail to make good or to conform to the plan
which they themselves help to formulate. In such cases they find
that no renewal of the lease is forthcoming at the end of the term.
On one project, 35 percent of the homesteaders—all on a tenant basis—
were in this class; most of these, however, had had little previous ex­
perience in farming.
Some settlers, even those who have been allowed to buy their land,
become dissatisfied. Some of them feel that the 40-year purchase
period is such a long time that for all practical purposes the farmer
keeps right on being a tenant, and only his children benefit. To this
could be replied, of course, not only that participation is entirely
voluntary, but that payment of the purchase price can be at as fast
a rate as the homesteader’s progress and earnings allow.
The cooperative-farming projects appear to appeal more than the
individual farms to a certain type of person. To others the reverse is
true; they feel that work for wages, with a problematical increment at
the end of the year, does not provide the same incentive as the prospect
of owning one’s own place. Perhaps a larger amount of turn-over has
therefore occurred on the cooperative projects than elsewhere, although

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it is undoubtedly true that economy of operation of a single large
farm, in contrast to many small ones, results in larger earnings. At
one project where the land—averaging about 45 acres per family—
is farmed cooperatively, an unusually great increase in standard of
living has taken place. This, it is pointed out, “ is testimony to the
tremendous advantage gained through properly planned cooperative
operation of the land. Through selection and variation of crops it has
been found possible to lower the labor peaks and fill in the low spots,
so as to provide more than twice as much labor for the residents
as they are able to find when working as harvest hands and day
laborers on neighboring plantations.’'
Accomplishments Under the Program
The Farm Security Administration appraises the homestead pro­
gram as follows:
In general, the projects which have been planned as full-time farming enterprises
for farm families have succeeded. The problem has been more difficult in plan­
ning agricultural-industrial communities for stranded industrial workers. How­
ever, even these experiments seem to be working satisfactorily in most cases.

From the point of view of the participating families, the program
has, on the whole, been highly successful. By providing capital it
has enabled them to get another start. Long-term leases and even­
tually the opportunity to purchase have meant greater security of
tenure. Combination of purchasing power has enabled the home­
steaders to obtain supplies and machinery on equal terms with the
large farmer. Cooperative marketing enables them to compete with
him in the sale of their products. The program has meant greater
employment, and consequently greater income, in a better-balanced
farm economy. It has meant a much-improved standard of living,
better health resulting from receipt of adequate medical care, more
sanitary surroundings, and better and more varied diet. It has
provided a source of technical and financial advice, training in farm
and home management and in habits of thrift, and opportunities for
further increase of knowledge in classes provided for the purpose.
It has helped to develop the resourcefulness and independence of
the participants, and has brought out their latent abilities. It has
enabled them to participate in a normal community life—in some cases,
for the first time in their lives. It has meant a chance to develop a
spirit of mutual helpfulness, a sense of status in the community, and
above all a hope for the future.
The whole industrial economy benefits by the increased purchasing
power of these families. Not only are they buying and using today
innumerable goods that they could never afford before, but their
circle of wants has been enlarged by the inclusion of many items of

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whose use they had previously not known. Some of the commodities
of universal use in families more easily situated financially many
articles of clothing, table and bed linen, towels, window curtains,
screens, even mattresses—were practically unknown to some of the
participating families. The raising of their economic level taps a
hitherto unexploited market and helps the nearby communities,
also, to increased prosperity.
After an early period of distrust and disapproval, the projects have
usually won the approbation of nearby civic and business leadeis.
These have come to realize that whereas the homestead families were
previously beaten and dispirited persons whose living conditions were
often primitive, their dwellings are now clean and sanitary. The
improvements made in the area occupied by the projects have increased
the value of all the property in the locality. In brief, what was a
liability to the locality and Nation has been changed into an asset.


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JVartime Policies

PACIFIC COAST SHIPBUILDING AGREEM ENT
ON January 13,1942, tlie hours and overtime provisions of the Pacific
coast shipbuilding master agreement1 were amended to provide for
continuous operation during the war period. The terms adopted in a
joint conference of employers, representatives of the metal trades
councils (A. F. of L.), Navy Department, and Maritime Commission,
under the auspices of the Office of Production Management, provide
that'—
(a) Pacific coast shipyards shall be placed on a basis of continuous
operation, 24 hours per day and 7 days per week, to the end that
maximum possible production of ships will result.
(b) The regular workweek shall consist of six regularly established
shifts for each employee; for the first five such shifts worked the em­
ployee will be paid at the straight-time rate, and on the sixth shift
worked the employee will be paid at time-and-one-half rate. No
workman shall be required to work a seventh shift during any work­
week, except in extreme emergencies, and in such cases he shall be
paid at the rate of double time.
(c) If possible, the day off to which each workman is entitled shall
be îotated, so that each man shall have an equal chance over regular
penods to be off on either a Saturday or a Sunday. However, this
policy, as well as the method of accomplishment, shall be left to
agreement between management, and local metal trades councils.
If necessary, and if agreed to between management and local metal
tiades councils, paragraph (b) may be modified to accomplish rotation
of days off.
(d) The calendar days of holidays recognized by the local metal
tiades councils of the Pacific coast area shall be compensated for at
double-time ratés, regardless of which day of the standard operating
week such holiday falls upon.
1 See M onthly Labor Review, M ay 1941 (p. 1162).

384


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GENERAL CONSCRIPTION OF MANPOWER IN
GREAT BRITAIN, 19411
WOMEN as well as men are subject to conscription for service in the
armed forces, in civil defense, or in industry, under the terms of the
National Service (No. 2) Act of 1941, adopted by Great Britain in
mid-December. Conscription of women is a departure from previous
policy. However, women will not be required to use lethal weapons
unless they volunteer to do so. The Emergency Powers Act of 1940 2
gave the British Government control over life and property and au­
thorized the Government to enforce industrial service. The present
law defines these powers exactly, extends compulsion to the auxiliary
military forces, and provides for the calling up of additional age
groups. Like earlier wartime measures, this act is of the enabling
type, and permits the Government in its discretion to conscript
special classes of men and women, as needed.
In presenting the conscription plan the Prime Minister stated that
the “crisis of manpower and womanpower” would dominate the year
1942. Under earlier legislation, he added, all women above 18 were
already liable to be directed into industry by the Minister of Labor
and National Service. But, according to the Government reading of
earlier enactments, there was no power to require women to serve in
the uniformed auxiliary forces of the crown or in civil defense.3 Men
and women are now equally liable for service.
Provisions for Women
For the present, unmarried women in the age groups between 20
and 30 years will be called for service in that order as required.
Notice will be given before additional age groups are called. Each
woman conscript will have the option of serving in the auxiliary
forces, in civil defense, or in specified industries. If no preference is
expressed, she will be placed in one or another of these branches.
Exceptions will be made in case of women engaged in vital war work
or service.
Armed forces to which women are liable are the Women’s Royal
Naval Service, the Auxiliary Territorial Service, and the Women’s
Auxiliary Air Force (without prejudice to their liability to be called
up for civil defense under the earlier National Service Act of 1941).3
1 Data are from Great Britain, Ministry of Labor and National Service, Man-Power, London, 1941,
(Cmd. 6324); Parliament, House of Commons, National Service Bill (No. 5), 5 Geo. 6 ; and The Manchester
Guardian Weekly (Manchester), December 5, 1941.
2 See Monthly Labor Review, May 1941 (p. 1080).
3 See Monthly Labor Review, June 1941 (p. 1393), for National Service Act of 1941 governing civil-defense
work.


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Monthly Labor Revieiv—February 1942

Exemptions are granted for married women or for a woman who
has living with her a child of her own under the age of 14 (including a
stepchild, adopted child, or illegitimate child). Women engaged in a
number of nursing and other organizations are also exempted. These
services are listed in a schedule attached to the law.
At the end of 1941, women aged 21 to 31 years already had been
registered under the Registration for Employment Order.4 These
and future registrations will be used as necessary in calling women for
National Service. The plans called for registering women of age 20
(1921 class) early in 1942, and those aged 32 to 40 are to be registered
at fortnightly intervals thereafter. Women who are not being con­
sidered for calling up will ordinarily be regarded as available to be
moved to important employment, that is if they are not already prop­
erly used in the war effort. In general, wives of men in the armed
forces or married women with household responsibilities will not be
moved. Doubtful cases will be decided by the women’s panels.
Appeals from their decisions will be allowed.
Provisions for Other Groups
Men are liable for military service through the age of 50, instead
of 40 as had previously been provided under the National Service Acts.
Although the lower age limit for calling up boys was previously 18,
they had not been taken until the age of 19. It has now been decided
that the lower limit for taking boys into the Forces should be reduced
to 18% years. Men over 41 years of age who are called will be used
for sedentary work to liberate younger men for more active duty.
Boys and girls between the ages of 16 and 18 are to be required to
register and will be interviewed by the Youth Service Committee of
the Education Authority, with a view to encouraging them to join
appropriate organizations. The minimum age for entry into the
Home Guard is to be reduced to 16 for certain duties.
Individual Deferments
It has been decided that the system of block reservation under the
Schedule of Reserved Occupations 5 must, in general, be replaced
gradually by a system whereby individual deferments are granted
after cases are reviewed. The transition is to be made by raising the
age of reservation by 1-year steps each month, beginning in January
1942. This scheme is not to apply to certain classes of men covered
by the Schedule of Reserved Occupations, such as those in the mer­
chant marine. Special schemes are to be adopted for men in agricul­
ture, building, coal mining, and the Civil Service.
4 See Monthly Labor Review, May 1941 (p. 1083).
5 See Monthly Labor Review, October 1941 (p. 885).


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387

WITHDRAWAL OF YOUNG WOMEN FROM CERTAIN
PURSUITS IN GREAT BRITAIN 1
YOUNG women are being withdrawn from specified industries and
occupations in Great Britain for employment in vital war work.
Arrangements for the withdrawal are similar to those in the case of
an earlier order relating to young women in retail trade.2 This action
is being taken under the Registration for Employment Order of 1941
(in effect prior to the general conscription described in the preceding
article), and affects young women 20 to 25 years of age employed in
the light- and heavy-clothing sections of the clothing industry, and
also in the woolen and worsted industry. For firms in the light­
clothing industry, which are engaged to the extent of 75 percent or
more on the production of light utility clothing, facilities are being
provided to replace the workers prior to their withdrawal.
Voluntary organizations engaged in work in connection with the
war effort will lose the services of young women in the 20- to 30-year
age groups, unless (1) the work on which the women are employed
requires special knowledge and qualifications, and the continued utili­
zation of the women on this work is required by the national interest;
(2) they cannot be replaced by older women; (3) they are regularly
employed for not less than 44 hours weekly by one of the organizations.
Voluntary workers filling full-time positions in the authorized estab­
lishments of the Civil Defense Services are not affected.
Under a previous determination by the Ministry of Labor the
voluntary organizations were designated which were competent to
issue certificates for full-time workers (44 hours a week) on work
essential to the war effort, including work essential to morale and
general well-being of the community. Persons covered by such work
certificates have not hitherto been required to transfer to other em­
ployment if they could not reasonably be substituted for by older
women. These cases are now being reviewed, and the persons con­
cerned will be called for interview unless they fulfill the newly adopted
conditions.
Women are also to be withdrawn from certain Postal Service occu­
pations. Mobile women of 20 to 25 years of age employed as post­
women on non-motor-driving duties and on sorting work are to be
released for women’s auxiliary services or munitions works. Similarly,
women falling in this classification employed on telephone, telegraph,
or counter work, who were not in Post Office employment before
August 1, 1941, will be released after substitutes are engaged. In
1 Data are from Great Britain, Ministry of Labor Gazette (London), November 1941.
a See Monthly Labor Review, January 1942 (p. 56).

488471— 42


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Mon thly Labor Review—February 1942

future the Post Office will not recruit women aged 20 to 25 years for
telephone, telegraph, or counter work, or women under 30 years of
age as postwomen and sorters.

INCREASED ALLOWANCES FOR DEPENDENTS
BRITISH MILITARY FORCES

IN

THE maximum family allowance for members of the British Forces is
to be raised from £2 to £3 per week, exclusive of grants made by
Service Departments under their regulations. The method of
assessing special allowances, known as “ war service grants,” has been
revised in order to provide for the varying circumstances of the
families covered.1
The most important type of case for which additional provision is
made is that in which the family of a man in the service has a low
standard of living, because the preservice maintenance standard is
taken as the basis of comparison in determining war-service grants.
Subject to the maximum rate of £3 per week under the new provi­
sion, it has been decided to fix a minimum standard of maintenance,
after reasonable commitments have been met for rent, taxes, insurance
premiums, etc., below which a service man’s family should not be
allowed to fall during his term of service. The standard to be adopted
for this purpose is 16s. per unit, two children under the school-leaving
age being counted as one unit. Under these arrangements the wife
with two children, for example, would be assured of a sum of 32s. a
week for maintenance.
This more liberal provision is intended to be chiefly applicable to
married men with children, as at present the allowance for a childless
wife is felt to be broadly adequate. However, even in the latter case,
the benefit under the new measure would be granted to those certified
as unfit for employment because of infirmity, age, or pregnancy.
Furthermore, subject to the weekly maximum of £3, families whose
preservice maintenance standard was above 16s. per unit will still be
eligible for allowances with reference to such standard. “ Up to the
level of 20s. per unit the full amount of any difference in the unit
income will be made good; this represents an improvement on the
present practice. Above that level some sacrifice can reasonably be
required under existing conditions and only part of the difference will
be made good: a graduated scale will be applied to higher unit incomes
and will be so adjusted as to give more liberal treatment than at
present.”
1 Great Britain, Ministry of Pensions, Improved Arrangements for Making Provision for Families of
Members of H. M. Forces During the Present War, London, 1941, (Cmd. 6318); and Great Britain,
House of Commons, Parliamentary Debates, October 16,1941, Official Report, London, 1941.


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As the preservice maintenance standard varies with thè actual date
of joining the forces, the preservice basic wage is usually loaded to
take into account the general wartime rise, and this practice is to be
continued.
While it is believed necessary to have a fixed maximum rate oi
allowance, the maximum of £2 per week now in force is to be raised,
as stated above, to £3, exclusive of any grants made by the Service
Departments under their regulations.
Another type of case is that in which the family is faced by an
emergency resulting from serious and protracted illness or death of
one of its members. In future, allowances may be granted, in addi­
tion to any sums already available
for example, from insurance), to
meet these emergencies. Consequently, when illness involves extra
expenditure of more than £2, an allowance may be granted to meet
the expense above this sum up to a maximum of £10; and m the case
of death an allocation of not more than £7 10s. may be made toward
the'excess cost of the funeral over any amount available to meet it.
Under the present rules for the assessment of war-service allowances
the member of the forces is expected to contribute to his family a
sum per week “ which, during the early period of his service, leaves
him with little or no increase in the amount available for his own use
as a result of proficiency or promotion.”
In future, in computing the war-service allowance, the family will
receive only the amount of the qualifying allocation fixed for army
cases until the man’s total pay is above 4s. per day, including his war
pay of 6d. per day. (The standard for the army is adopted with a
view to uniformity, as the actual qualifying allotments vary in amount
in the different forces.) Above this standard, according to the
provisions under review, “ it is reasonable that the man should con­
tribute to his family four-sevenths of any addition to his pay, retaining
the remaining tliree-sevenths for his personal use.
During 1941 the methods of assessing allowances payable to
dependents of unmarried men were improved, but it is proposed to
supplement these by making the above arrangements applicable to
a wholly dependent parent of a man in the service who was the bread­
winner of the household.
All the above changes were effective from the first pay day m
November 1941.
(a s,

AUSTRALIAN EMPLOYMENT

REGULATIONS, 19411

UNDER regulations adopted by the Australian Government on July
8, 1941, employers may not entice workers from other employers and
i New South Wales (Australia). Department of Labor and Industry and Social Services. The New
South Wales Industrial Qazette (Sydney), August 1941 (pp. 170,180-187).


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Monthly Labor Review—February 1942

may not pay wages above the rates authorized for the occupation.
In August, two employers had already been prosecuted for payment
in excess of the maximum-wage rates fixed by the National Security
(Employment) Regulations. The regulations referred to were made
under the National Security Act of 1939—
40 and are administered by
the Minister of State for Labor and National Service. Earlier emer­
gency employment regulations are repealed and are replaced by those
described below. However, all arrangements made under the earlier
regulations are to be continued in force, as if they had been made by
the Minister of Labor and National Service.
Power is granted to the Minister of Labor to make such provision
as he considers necessary, for the training of workers in skills that are
essential to the efficient prosecution of the war. He may also arrange
for the employment of trained personnel in the trade or branch of trade
in which he determines that labor is needed.
Employers not engaged in the manufacture, production, repair, or
overhaul of munitions for war purposes may not hire employees
unless they secure permits from the secretary of the Department of
Labor and National Service. Employers engaged in munitions work
are required to notify that Department of their intentions to hire
workers. The notification must be made on a prescribed form and
the employer must furnish specified particulars in relation to the em­
ployee.
The detailed regulations forbidding employers to entice workers from
other jobs apply to employers engaged in munitions and other work.
An employer may not invite any employee to whom the regulations
aPPly (other than an employee not actually employed in his trade or
occupation) to enter his employ, nor may he intimate in any manner
that he has vacancies for the employees covered, unless he includes
in the invitation or intimation his full name and address and a state­
ment that a munitions worker will not be considered unless he is not
working in his usual trade or occupation. The employees covered are
fisted in the first schedule to the regulations. Occupations specified
in this schedule are in a number of industries, including metal, optical,
and motor-vehicle building.
Offers of higher pay than the rates fixed in the second, third, and
fourth schedules of the regulations are forbidden. Notwithstanding
this provision, employers of workers engaged on war work may make
specified additions to the wages of shipwrights or ship painters and
dockers (but not to exceed 3s. weekly if such payment was being made
to the employee on September 19, 1940). A similar provision is made
foi ironworkers in the State of New South Wales, in pursuance of a
pre-existing arrangement between employers and employees.


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391

Wage provisions under awards and court orders, if equal to or exceed­
ing those set forth in the schedules to the regulations, will apply
upon publication thereof in the Official Gazette. Thereafter no
changes in payment may be made or offered by the employer. Special
modifications are listed in the regulations to permit existing awards
and orders to remain effective in different States of the Common­
wealth.
In addition to the prescribed wage rates, employers may pay to
their employees an amount by way of “merit money” not to exceed
the amount, if any, paid by that employer in the pay period includ­
ing July 5, 1940. The employer may also make such a payment to
an employee in the amount paid to him by another employer in that
pay period. Any special allowances which may be approved may
likewise be paid. It is also provided that the rate of payment made
to any employee (immediately before the effective date of the regu­
lations here summarized) under the terms of an industrial award,
agreement, determination, or regulation shall be continued even
though it is higher than the rate set forth in the schedules already
referred to. The employee may not, however, receive more than
the higher rate to which he was entitled by reason of the regulations
or earlier agreement.
The obligation placed on employers to refrain from making or
offering higher wages than are required by court award is subject to
such exceptions and undertakings as are specified or referred to
in the award.
In prosecuting a Sydney munitions employer for paying a firstclass machinist £6 15s. instead of £6 4s. in a particular week, it was
contended that the employer’s breach was technical and was caused
by a wrong interpretation. A fine of £4 was imposed. A Melbourne
employer had paid a weekly wage of £6 11s.—9s. above the authorized
maximum of £6 2s.—to a fitter engaged in the manufacture of aircraft
parts. The fine in this case was £2. The Crown counsel stated that
the regulations were made to prevent trafficking in skilled workmen.
As most contracts are on a “cost-plus” basis, the effect would be for the
Government to pay higher wages and the employer to collect a higher
percentage of profit on the inflated cost.

EXTENSION OF WARTIME WAGE CONTROL IN
CANADA TO SMALL EMPLOYERS
A CANADIAN order in council of December 5, 1941,1 extends the
provisions of the wartime wages and cost-of-living bonus order of
1 Canada Gazette (Ottawa), Extra No. 101, December 9, 1941.


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Monthly Labor Review—February 1942

October 24, 1941,2 to smaller employers who had previously been
excluded. The new order reads in part as follows:
2. (1) In this order, unless the context otherwise requires, “employer” means
any person, firm, or corporation employing any person but shall not include
(i) any department or agency of the Government of Canada subject to the pro­
visions of order in council, P. C. 6702, of 26th August 1941, as amended; or
(ii) any department or agency of any provincial government or any municipality;
or (iii) any person, firm or corporation engaged in agriculture, horticulture, fishing’
hunting or trapping; or (iv) any hospital or religious, charitable, or educational
institution or association not carried on for purposes of gain.
(2) This order shall be applicable in respect of all employment by any employer
other than domestic service in a private home and employment of a casual nature
otherwise than for the purpose of the employer’s trade or business.

The amending order also provides for 9 regional War Labor Boards,
one for each Province, an increase of 4 over the number stipulated in
P. C. 8253.
Section 16 of P. C. 8253 is also amended by P. C. 9514, by the
addition of the following statement:
Notwithstanding any provision of any collective agreement with respect to
working conditions, either party to any such agreement may apply to the National
War Labor Board for the revision or suspension of any such conditions and the
Board shall have power to direct any revision or suspension thereof not inconsistent with the provisions of this order which it may deem advisable.
* M onthly Labor Review, December 1941 (p. 1392) and Canada Gazette (Ottawa) October 24, 1941.


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Employment and Business Conditions

CHARACTERISTICS OF SHIPBUILDING LABOR
HIRED DURING FIRST 6 MONTHS OF 19411
ONE-FOURTH (25.1 percent) of the skilled workers hired during
the first half of 1941 by a number of the shipbuilders on the Atlantic
coast were recruited from the ranks of the unemployed. Manufactur­
ing industries (including other shipyards) provided slightly less than
a fourth (23.4 percent) of the 3,445 new workers included in the sample,
while nonmanufacturing industries contributed one-third (32.4 per­
cent) thereof. As defense requirements make it undesirable that
skilled workers be drawn away from manufacturing industries, this
may be considered a change for the better as compared with the pre­
ceding 7 months,2 when 36.6 percent of the 1,752 new workers in­
cluded in the sample for that period came from manufacturing indus­
tries, while nonmanufacturing industries and the unemployed con­
tributed 29.0 and 18.4 percent, respectively.
These conclusions are based on a study of new accessions in ship­
building labor made by the Bureau of Labor Statistics at the request
of the Shipbuilding Stabilization Committee of the Office of Produc­
tion Management. During July and August 1941, Bureau repre­
sentatives again visited the five private shipyards that were included
in an earlier study made in the last 3 months of 1940 and January
1941. These yards were all on the Atlantic coast, from Connecticut
to Virginia. The purpose of these visits was to supplement the earlier
study wherein information was obtained pertaining to the charac­
teristics of workers hired in skilled occupations between June and
December 1940. Included in the second stirdy were 3,445 workers,
or about 95 percent of the skilled accessions in these yards during the
period January 1 to June 30, 1941.
The employees covered included those hired as shipfitters, machin­
ists, electricians, sheet-metal workers, welders, etc. Information
secured included occupation, date hired, age, marital status, number
of dependents, former industry, former employer, and length of time
1 Prepared by O. R. Mann and S. E. Miller, of the Bureau's Employment and Occupational Outlook
Branch.
* See M onthly Labor Review, May 1941 (pp. 1142-1145).


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394

Mon thly Labor Review—February 1942

with former employer. These data were obtained by the Bureau’s
representatives from the individual job applications or from ques­
tionnaires filled in directly by the workers.
Former Industrial Affiliation
During the period, January to June 1941, the proportion of skilled
workers recruited from manufacturing industries increased steadily
each month until June, when the largest percentage of accessions
came from this source (table 1). In January the largest group
(41.6 percent) was obtained from the ranks of the unemployed.
During February, March, April, and May, however, nonmanufactur­
ing industries were the largest contributors of skilled workers to the
shipbuilding industry. The largest drain on the prime defense
industries occurred during June. Of the total skilled accessions
during that month, 15.4 percent were obtained from the aircraft,
machine-tool, ordnance, and shipbuilding industries. In the interests
of defense, large-scale drains of skilled personnel from manufacturing
industries is not desirable. However, continued shortages of materials
for the manufacture of certain nondefense commodities may make
these industries an increasing source of skilled workers for shipyards.
Both the unemployed and the self-employed contributed substan­
tially to the skilled workers hired by the shipyards. Small numbers
were also obtained each month from persons on WPA projects.
T able 1 .— Industrial Sources of Skilled Workers Hired in Selected Atlantic Coast

Shipyards, January 1-June 30, 1941
Total

Percent hired in each month

Industrial source

Manufacturing industries.______ ____________
Aircraft and aircraft engines, Government...
Aircraft and aircraft engines, private______
Machine tools____ _____________________
Ordnance, Government_________________
Ordnance, private___________ ___________
Shipbuilding, Government______________
Shipbuilding, private___________________
Other manufacturing industries___________
Nonmanufacturing industries________________
Other Government (Federal, State, and local) .
Self-employed___________ _____ ___________
Work Projects Administration_______________
Unemployed______ ______________________
Not reported................. ............. ..........

Num­
ber

Per­
cent

Jan­ Feb­
ru­ March April May June
uary ary

807
4

23.4

17. 7

21

10

11

82
52
172
455
1,114
94
390
70
862
108

Total---------------------------------------- --------- 3,445

.1

.6

.3
.2
.3
.4
2.4
1.5
1. 5
.4
5.0
4.6
13.2
9.7
32.4 21.9
2.7
2.9
11.3 11.9
2 .0

25. 1
3.1
100.0

18.7
.3
.3
.2

1.2

.9
4.2
11.6

32.2
2.3
13.7

1.8 1.2
41. 6 29.0
2.2 2.9

100.0

100.0

19. 7
.3

25.3

.2
.3
2.3

.2

.5
.4

37.6
3.1

2.9
.5
6.5
14.3
38.4
2.9

10.1

11.6

1.1

2 .8

12.0

2.9
23.8
2 .8

100.0

3.1
14.9
3.8

25.4
.5
.5
2.7
1.9
5.3
13.6
31.2
2.7
13.5

1.2

21.8

4.2

100.0 100.0

32.6
.5
.5
.3
3.6
3.8
6.7
17.2
30.5

2.6
7.3
2.0
22.2
2.8
100.0

Table 2 gives a quarterly comparison of the relative importance of
industrial sources as revealed by the two studies. Manufacturing
industries as a contributing source declined steadily until the second
quarter of 1941, when the percentage almost reached the high point of

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Employment and Business Conditions

the first period covered. The unemployed, on the other hand, were a
major contributing source until the last period, when there was a sharp
decrease in the percentage obtained from their ranks. A rise in the
proportion of the skilled workers coming from miscellaneous manu­
facturing industries is probably to be expected. A rise in the propor­
tion drawn from other essential war industries, such as occurred in the
second quarter of 1941, represents a waste of manpower in the period
of turn-over. It is to be noted that this rise occurred from month to
month within the quarter.
T able 2.— Industrial Sources of Skilled Workers Hired in Selected Atlantic Coast

Shipyards, July 1, 1940—June 30, 1941, by Quarter
Percent hired in each quarter

Third
quarter
Manufacturing industries-------- --------------Aircraft and aircraft engines (Government) —
Aircraft and aircraft engines (private)--------Machine tools----- ---------------------------------Ordnance (Government).................... .............
Ordnance (private)........ ...... ................ ...........
Shipbuilding (Government).-------------------Shipbuilding (private)------- --------------------Other manufacturing industries----------------Other sources________________ ______ ______
Nonmanufacturing industries......... ............
Other Government---------------- ---------------Self-employed.-------- --------------------------- —
Work Projects Administration-----------------Unemployed (including schools and colleges).
Not reported........................ —-------------------Total, percent..
Total, number.

1941

1940

Industrial source

28.9
.5
2.9

2.8

4.1
18.1
71.1
26.0
3.2
11.5

Fourth
quarter
21.2
.2

18.9

1.5
2.4

.6

2.4
4.4
10.3
78.8
24.7

2.2

1.8

24.6
4.0

8.3
.9
37.6
5.1

100.0

100.0

883

First
quarter

543

.2
.1

Second
quarter
28.0
.6

.5
.3
3.1

.3
1.7
.9
3.8
11.3
81.1
31.4
2.7
11.9

15.2
72.0
33.2
2.7
10.7

30.4
2.7

19.7
3.6

2.0

100.0

1,715

2.1
6.2
2.1

100.0

1,730

Geographical Sources
Table 3 shows the geographical location of the workers at the time
of filing application. There were representatives of 33 States, the
District of Columbia, and the Canal Zone, among the 3,445 workers
included in the study. Over four-fifths (84.3 percent) came from the
five States in which the shipyards studied were situated; l. e., Con­
necticut, New Jersey, Pennsylvania, Maryland, and Virginia. Of
the total number hired, one-third (33.4 percent) came from Pennsyl­
vania, with New Jersey contributing more than one-fourth (26.2
percent).
During January 85.7 percent, and in June, the last month covered
by the report, 83.4 percent, of all workers came from these five States.
An examination by State, however, shows that the percentage hired
in June from Connecticut, Maryland, and New Jersey was con­
siderably less than in January, while for Virginia and Pennsylvania
the reverse was true.

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T able 3.— Geographical Sources of Skilled Workers Hired in Selected Atlantic Coast

Shipyards, January 1-June 30, 1941
Percent hired in each month
State and region

Total

New England States:
Connecticut________________________
Other 1_____________ _______________
Middle Atlantic States:
________
New Jersey____________
New York.
. . ____ .... _________
Pennsylvania_______________________
South Atlantic States:
M aryland____ ______
. . . . ___ .
Virginia__________ _______________
Other 1_____________________________
All other States L . _____________________
Not reported___________________________
Total_________________________ . . .

Janu­
ary

Febru­ March
ary

6.4

2.0

6.2
2.0

7.2
2.5

26.2
3.4
33.4

34.2
3.1
27.2

30.5
3.4
28.0

10.0

13.0
5.1

April

May

6.0

9.0

1.6

2.1

5.5

4.4
1.3

19.8

26.8
4.7
41.6

2.5

20.6

26.1

2.6

4.2
32.5

29.7

2.6

40.3

8.8 8.0 13.4 12.9
9.6
12.6 10.1 6.4
6.2
6.6 6.0 7.8
7.8
2.3
2.0 1.5
1.8 1.6 2.6
.8 1.3
1.6
1.2 1.1 1.7
100.0 100.0 100.0 100.0 100.0 100.0
8.3
7.1

June

5.2
5.4

8.0
1.8
.8
100.0

1Alabama, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois,
Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, North
Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Vermont, West Virginia,
Wisconsin, and Canal Zone.
Table 4 shows the extent of migration to the various yards. It is
interesting to note that in every instance the great majority of work­
ers hired came from the State in which the yard wTas located and its
adjacent State or States. The basic material shows a limited amount
of hiring across State lines; i. e., a company in New Jersey might
obtain some men from Pennsylvania and vice versa. Owing to the
proximity of the yards, however, this was to be expected.
T able 4. —Extent of Migration of Skilled Workers Hired in Selected Atlantic Coast

Shipyards, January 1-June 30, 1941
Percent of workers obtained from—
Shipbuilding establishment

Yard A___ ___ __ ___ _
Yard B ___________
Yard C_________________ ___
Yard 1)__________________________
Y a rd E ___ _ .

Total

____ ____

Total___ _________ ___________________

100.0
100.0
100.0
100.0
100.0
100.0

Within
same
State

68.0

Adjacent
State or
States

Other
States

Not re­
ported

62.5
79.6
58.6
61.6

15.1
29.5

16.9

17.7
22.3

8.0
5.4
20.0

16.1

3.7

66.3

21.4

11.2

1.2

12.2

2.8

Age of Shipyard W orkers
A distribution of the 3,445 skilled workers by age group (table 5),
shows that more than one-fourth (28.8 percent) were under 30 years of
age at the time hired. At the other extreme, there were nearly onefourth (23.7 percent) who were 45 years old and over.


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Employment and Business Conditions

T a b l e 5.—Ages of Skilled Workers Hired in Selected Atlantic Coast Shipyards, January-

1-June 30, 1941

M o n th h ire d

Ja n u a ry
_ __
__ - _________
F p h rn a ry
_ _____ _____
___
M ffrpL
__ ___ ___ ___ —
Akpril
- ___ - - _______ ___ _______
_____
M ay
J u n e ________________________________________
T o ta l

.

- ______ ______________

U n d er
A ll
groups 21 y ears

21-29
y ears

30-35
y ea rs

36-39
y ea rs

40-44
y ea rs

45 y e a rs
and
o v er

100.0
100.0
100.0
100.0
100.0
100.0

1.3
.8
1.0
2.0
2.5
3.8

22.6
24.8
27.6
26.7
28.1
30.1

22.3
21.6
19.9
20.5
20.7
21.4

11.7
15.1
13.4
11.8
13.3
12.4

15.0
14.9
14.8
13.6
13.5
9.3

27.1
22.8
23.3
25.4
21.9
23.0

100.0

1.9

26.9

21.0

13.0

13.5

23.7

FRENCH LABOR CHARTER
THE labor charter for France, which had been under discussion by
the council of ministers for some months, was presented to the Chief
of the French State, and put into effect by a decree dated October 4,
1941.1 In the report accompanying the decree it was stated that the
charter lays down the general rules which will govern the relations
of the workers both in the exercise of their trades and in the develop­
ment of their material and moral life. It was the purpose of the com­
mittee, in drawing up the charter, “ to break definitely with the old
system of the class struggle." The charter provides for the creation
of joint social committees made up of all the members of a profession,
which committees, however, will be entirely different from the syndi­
cates of the past. These organizations will serve as the basis for
the establishment eventually of the “ corporations" which the report
states will be “ the great hope of the French future." The report
points to two concrete achievements in the charter, one the establish­
ment of the principles of a method for the determination of wages,
and the other a scheme for participation in profits and the creation
of a common fund to be used to improve “ the security and well-being
of those concerned.
General Regulations
The law provides for the division of professional activities among
a determined number of industrial and commercial groups. These
groups and the occupations comprised in them will be organized to
manage in common the professional interests of all classes of theii
members. Within this organization everyone will participate in the
professional activity of the group and will be subject to the duties,
obligations, and responsibilities imposed, and to the general pro­
fessional laws and regulations. They will be required to participate
in the expenses of the group to which they belong. Members of a
l Journal Officiel de l’É tat Français (Vichy), October 26, 1941.


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Monthly Labor Review—February 1942

group will be classified according to their professional qualifications;
and wage earners, in exchange for their work, will be entitled to the
salary and advantages attached to their classification.
There seems to be no exact English equivalent for the words “profession and “professionnel” as used in the French law. Apparently
these terms are intended to refer variously to industry, trade, or occu­
pational groups.
Employers are to be given an authority corresponding to the social,
technical, and financial responsibility which they assume; upon them
is imposed the duty of managing the enterprises for the common
good of all the members.
Within the scope of the legislation in force, the organized profes­
sions are expected to insure security of labor for their members and
to contribute to their well-being by the establishment and manage­
ment of social institutions of every kind.
Strikes and lock-outs are prohibited.
Classification of Industries
Organization provided for by the law is both social and professional.
Consequently, the activities of the organizations are the subject of a
double classification.
io r questions of a social nature, industrial and commercial estab­
lishments are assigned to a specified number of professional groups.
A separate organization will be created for each of these groups,
and eventually organization within the group, by industry and
occupation, will follow.
For questions of a professional nature, each profession is attached
to a group chosen by reason of its particular competence in regard
to the profession in question. This group will form organizations
qualified to deal with the problems of the professions concerned.
Civil servants are excluded from the field of activity of the present
law because of a special law covering these employees, which was
passed September 14, 1941,2 but special regulations will be issued to
reconcile the provisions of the two laws. Agents of public industrial
services other than those included in the law of September 14 are
included in the present law.
Decrees to be issued will fix the nomenclature of professional
groups; the allocation of industries and commercial establishments to
professional groups; the connection of the professions with these
groups; and the relationship between the groups and the provisional
organization committees established by the law of August 16, 1940.
2See Monthly Labor Review, January 1942 (p. 130).


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399

The Syndicates
Members of the professions will be grouped in professional syndi­
cates, by localities. This grouping will be established by decree.
Within these syndicates separate groups will be formed for employers,
workers, employees, executives (agents de maîtrise), engineers, etc.
Similar categories can be united when the individual groups are small.
In cooperative societies the president and general manager are con­
sidered as employers.
In each case the area to be covered by a syndicate will be determined
bv provisional organising committees to be established for each
professional group, and, in principle, will include the personnel of
many enterprises. The area covered by the syndicates will not
necessarily be the same for different categories.
All persons, whatever their age and nationality, who are engaged in a
professional activity, are required to belong to a syndicate of their
special classification, but any person may be excluded from such a
group by decision of the competent committees for serious or repeated
violation of the labor laws or corporative regulations or for activity
contrary to the general interests of the country. Appeals fiom such
decisions may be made to the regional social committee or, as a last
resort, to the national social committee.
Artisans constitute, in principle, a special section of the professional
syndicates.
' The functions of the syndical groups include representation of their
members, transmission or execution of corporative decisions, and
study of and proposals for solution of problems concerning their mem­
bers. All political or confessional activity is strictly forbidden.
The syndicates will be directed by administrative councils, the mem­
bers of which must be French nationals, at least 25 years of age, who
have no criminal record, and who have been members of the piofession
in question for at least 5 years, 2 of which must have been in the area
covered by the syndicate.
Expenses of the professional organizations are to be met by con­
tributions of the social committees and fees from the participants.
Unions and Federations
Unions and federations will be organized by profession or by groups
of professions, the unions being organized on a regional basis as
representatives of the professional syndical councils, and the fedeiations on a national basis. Only one union and one federation may
represent a single professional group. The constitutions and bylaws
of the unions must be approved by the competent national social
committee, and those of the federations by the Secretary of State for
Labor.

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Industrial Social Committees
Collaboration between employers and workers is compulsorily
organized in establishments having at least 100 workers, by social
committees, which include the head of the establishment and repre­
sentatives of all classes of the personnel. The committees will not
have any part in the management of the enterprise but will assist the
management in settling all questions arising in regard to the work
and the life of the personnel in the establishment; provide for an
exchange of mutual information upon all questions concerning the
social life of the personnel and of the group; and organize socialassistance measures. These committees are under the corporative
authoiity and control of the local social committees. For enterprises
having a small number of employees a social committee may be
organized for a group of industries in the same area.
Social Committees of the Professional Groups
Local, regional, and national social committees will be created for
each professional group. The local social committees will have from
12 to 24 members, with equal representation of employers, workers
and employees, and other classes. Each of these groups within a
committee will elect a president, thus constituting a bureau over
which each group president will preside in turn for a period of 8
months. Similar joint committees will be established for the regional
and national groups.
The duties of the committees are of a professional and social nature.
In the first case, the committees are empowered to deal with questions
of wages and collective agreements, apprenticeship, reclassification,
etc.; establishment of regulations relative to hiring and bring and to
hygiene and safety. For each of the occupations, they also study
and establish regulations governing the practice of a trade, occupa­
tional qualifications, and promotions. In the social field, the com­
mittees will be concerned with measures for promoting employment
security and unemployment insurance, retirement insurance, assist­
ance, family aid, and improvement of living conditions such as
housing, gardens, sports, leisure-time activities, arts, general culture,
etc. The committees will be under the general supervision of special
corporative commissioners.
The committees are to represent their members legally before
the public authorities in each area or region, and their decisions are
enforceable unless rescinded by a committee in a higher scale or by
the public authorities. The committees have civil personality and
the right to sue in a court of justice; to acquire, without specific
authorization, real and personal property; and to establish and
manage all the organizations necessary to their activities.

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401

The national committee of each group has general control of the
group, coordinating and regularizing the activities of regional com­
mittees. It decrees or approves general regulations (notably those
having to do with hygiene and safety), orients the social action of
the group or the profession, and manages the institutions and funds
which it considers should have a national character. The regional
committee, operating under the instructions of the national com­
mittee, coordinates the activities of the local committees and man­
ages the institutions and funds having a regional character. The
local committee coordinates and controls the activities of the estab­
lishment committees.
The public authorities are represented on each national social
committee by a Government commissioner appointed by the Secre­
tary of State for Labor.
Interprofessional questions will be handled by social interprofes­
sional committees established in each region, made up from the
bureaus of the regional social committees. They may be consulted
by the public authorities on general, professional, and social ques­
tions, and notably on the determination of the cost of living and the
utilization of labor.
In each professional group or profession the necessary administra­
tive expenses are to be covered by a contribution imposed on mem­
bers of all classes. The funds thus obtained are divided among the
social committees. The amount of the contribution and the division
among the separate organizations is to be decided upon by the na­
tional social committee with the approval of the Secretaries of State
for national economy and finance and for labor. The employer is
responsible for the collection of the contributions which are retained
from the wages of employees. These fees are separate from the
professional contribution.
Each professional group is to establish a common corporative fund
(p a tr im o in e ) to be exclusively used for the amelioration of the con­
ditions of life of the members of the profession. This fund, which
is the property of all the members of the profession, is to be managed
by the local, regional, and national committees, between which it is
divided by the national committee. It is normally raised by a tax
on the profits of the enterprises of the profession and by gifts and
legacies. No part of the fund may be used for administrative ex­
penses nor to carry the costs of the social institutions.
In order to facilitate the operation of the social committees, a
common headquarters will be established for all the members of each
professional group, which will be used for corporative purposes but
may not be used for political or commercial purposes.


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Monthly Labor Review—February 1942

Wage Provisions
Wages of all members of the different professional groups will be
fixed according to the following general principles:
A minimum basic wage will be fixed which will vary according to
the place of employment and the local cost of living. The professional
remuneration complements the basic wage and corresponds to the
occupational qualifications of the individual, and varies according to
the occupation and the place of employment. Supplementary pay­
ments may be added eventually, based on individual aptitude and
output, notably for piece work. To the wages thus defined, supple­
ments will be added for family charges. The minimum basic wage
will be fixed by the Government, by region, Department, or locality,
upon the advice of a superior wage committee in the Secretariat of
State for Labor. The supplementary wage will be established as a
coefficient of the basic wage. These coefficients will be established
for each occupational classification. Agreements may be concluded
between the State secretariats concerned and the organized professions
in regard to the delegation of social power to these organizations,
relative to insurance, retirement, unemployment allowances, etc.
The State will share the cost of these activities in order to assist in
the initial functioning of these institutions.
Labor Jurisdiction
All the professional organizations must endeavor to prevent or
conciliate any differences which may arise from the application of the
legislation and of the social regulation of the professions. Disputes
which cannot be avoided or conciliated will be brought before the trade
councils or the justices of the peace, if individual disputes, or sub­
mitted to arbitration before the labor tribunals if collective disputes.
A regional labor tribunal will be formed in the jurisdiction of each
court of appeal. These tribunals will consist of two magistrates and
three members of the competent regional social committee. Recourse
from the decisions of the regional tribunals may be had to the national
labor tribunal, which will consist of three magistrates and four mem­
bers of the competent national social committee. Members of the
labor inspection service will be appointed by the Secretary of State
for Labor, as Government commissioners, on both the national and
the regional tribunals.
Transitory Provisions
The formation of the syndicates, committees, and groups provided
for in the new professional organization will involve the dissolution of
the former unions, and of syndical and professional groups of all kinds.

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403

Property belonging to these organizations will pass to the new synclical
organizations and social committees, and will, so far as possible, be
retained in the same enterprises, localities, or regions to which it
has belonged. The former syndical organizations will be allowed to
carry out administrative matters, pending an inventory of their
properties and their inclusion in the new organizations.
A provisional organization committee will be appointed for each
professional group to study and propose the local and regional areas
to be served in each case by the syndical and corporative organizations,
and the conditions under which the former syndicates, unions, and
federations will be regrouped in the new organizations. Members of
the provisional committees will be appointed by the Minister of State
charged with the coordination of the new institutions and the Secretary
of State for Labor.
COMPULSORY LABOR IN TURKISH MINES AND
PUBLIC WORKS
COMPULSORY labor was established in the Eregli Coal Basin in
Turkey by legislation passed early in 1940, and an emergency decree
published in June 1940 provided also for compulsory labor on public
works such as the construction of roads, bridges, public grounds, and
boat landings. A decree of September 27, 1941,1 provided for com­
pulsory service on all types of transportation and on lumbering
operations and transportation in forests.
The purpose of the last-mentioned decree was to provide the
necessary labor for the production of mine props to be used in the
Eregli Coal Basin, as the Turkish Government wished to give special
impetus to coal production. It will be applied in those parts of the
country where there are forests which may be utilized for the produc­
tion of mine props either at the present time or in the future. The
persons affected by the legislation are the employees and workers
under the State Forest Works, specialists in lumbering operations and
the making of mine props, and all nationals who have the ability and
are of the age to do such work.
The decree also provides for use of all means of transportation in the
possession of persons subject to compulsory service, and of all land
and sea transport suitable for transportation of props and construc­
tion materials in districts in which compulsory labor is in force.
Normal wages will be paid to workers mobilized for this service,
and transportation services requisitioned for the work will be remu­
nerated.
1 Report from Earle C. Taylor, acting commercial attaché, United States Embassy at Istanbul.

438471— 42----- 9


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Monthly Labor Review—February 1942

The duration and periods of work will depend upon the require­
ments of the lumber operations, the families of the workers, and the
conditions of production. The national requirements will receive
first consideration, however, rather than the difficulties of individuals.
Persons subject to compulsory labor service and those employed
in the transportation services, as well as contractors either with the
State Forest Works or the Eregli mining operations, will be exempted
from military service.


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Migratory Labor

MIGRATION AND SETTLEMENT IN THE YAKIMA
VALLEY, WASHINGTON
DURING the past decade the migratory movement from the Great
Plains was largest into the State of California, but significant numbers
of migrants also went to the States of the Pacific Northwest. Migra­
tion into the Yakima Valley, Washington, was the subject of a study
made in 1939 for the purpose of measuring the degree of success or
lack of success met by former migrants of agricultural background in
relocating in a new environment.1 Yakima County is still an expand­
ing area as regards number of farms and acreage in farms, but much
of the increase in acreage has been in the use of nonarable land for
pasture, and there has been a fairly persistent trend toward farms of
less than 20 acres, particularly to units under 10 acres. The crops
producing the greatest revenue are fruits and vegetables, and the
fruit and crop-specialty farms in the county are small, specialized,
and highly commercial.
The study covered 250 recently settled families with a farm back­
ground, omitting single persons and migratory families.
The county was found to be one of the fastest growing counties in
the State during the past decade, the population having increased 27
percent from 1930 to 1940, according to the census reports. From
5,000 to 6,000 families residing in the county in 1939 were estimated
to have moved into it from other States since 1930.
A school survey showed that the years 1934 to 1937 brought into the
county a larger proportion of families with agricultural backgrounds
than either the preceding or succeeding years, this influx of families
coinciding with the “ drought phase” of the migration into the Pacific
Northwest. This increase in the population of the county threw an
additional strain on the school system and on the system of relief.
During much of the year the labor supply in the county had exceeded
the demand, even prior to the migration of the 30’s, and in 1939 in
only 5—7 weeks during the year were all resident laborers fairly sure of
finding jobs. These periods of employment occur during the cherry
i United States Department of Agriculture, Bureau of Agricultural Economics, in cooperation with
Washington Agricultural Experiment Station. Migration and Settlement on the Pacific Coast, by Carl
F. Reuss and Lloyd.H. Fisher. Washington, 1941.


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405

406

Monthly Labor Review—February 1942

harvest, the hop harvest, and the apple harvest; during the rest of
the harvest season the competition for jobs is intense. There is prac­
tically no chance for farm or industrial employment during the winter,
so that nearly all resident farm laborers are unemployed for almost
the entire winter.
In addition to the unemployment problem a serious health problem
arising out of the migration is found in the housing situation. Over­
crowding and poor sanitation are prevalent in the new settlements,
and the poverty of recently settled families contributes to the health
dangers both among these families and among the older residents.
Before their arrival in the State, 160 of the 250 families covered by
the survey had operated farms either as owners or tenants. Half of
the families estimated that they were worth $2,500 or more at their
most prosperous period, and one-fourth had been worth an estimated
$5,000 or more. About 14 percent reported their net worth at one
time as having been $10,000 or more; but an equal number, mainly the
younger families first established during the depression period, re­
ported that the net value of all possessions had never exceeded $500.
Future Prospects
In summing up the results of the study it is stated that the work
opportunities in the county allow little optimism regarding the future
prospects of settlers for adequate incomes from private employment.
It was estimated that as early as 1936 the number of resident farm
workers ranged from 4,000 to 6,000, whereas opportunities for full
employment existed for not more than 500 persons; and since that
year there has been an increase in resident laborers. There are few
changes possible which could improve the work opportunities of resi­
dent laborers. With a return of prosperity conditions to agriculture
there might be an increase in wage rates, and there is a possibility of
lengthening the harvest seasons through the introduction of new crops.
It is not believed, however, that these changes would significantly alter
the incomes of persons dependent on agricultural labor, since no con­
ceivable change in wage rates could convert seasonal earnings into an
adequate annual income, and the development of new crops such as
asparagus, which has been recently introduced, would not provide
enough additional work to remedy the situation.
Essentially, the problem arises out of the conflict between a pattern of produc­
tion that is seasonal in nature and a labor supply that is residentially stable. At
present the conflict is reconciled through the medium of public assistance during
the inevitable periods of unemployment. It would be idle to observe that the
labor requirements of agriculture in the Yakima Valley are best met by migratory
labor. The population with which the study is dealing is now a settled population
and shows little inclination to accept the disadvantages of transient life. Further­
more, there is serious doubt that net earnings from agricultural labor would be
significantly increased by greater mobility. The costs of such employment are
extremely high.

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Education and Training

BRITISH PLAN FOR TRAINING THE DISABLED 1
TERMS of a plan for tlie training and resettlement of disabled persons
have been outlined by the British Ministry of Labor and National
Service. Coverage does not extend to the whole problem of resettling
disabled persons, as the needs of the more severely disabled, foi
example, may be of a specialized nature. Under an arrangement with
the departments responsible for the various types of hospitals, the
Ministry of Labor has arranged to have its representatives visit the
disabled while they are still being hospitalized. By interview, the
individual requirements of each patient will be determined, taking
capacities into account. Those who have not been interviewed in the
hospitals may apply at any local office of the Ministry.
Disabled persons are to be assisted in finding suitable employment.
When training is needed, it will be furnished under the existing system
used in preparing persons for munitions work, and a new scheme will be
established for the benefit of the disabled. The latter plan is described
below.
Eligibility
Persons of either sex are eligible, provided they are over the age of
16, regardless of the cause of disablement. Coverage is not limited
to those disabled as a result of the present war. The plan is intended
to aid those who are unfit, by reason of disablement, to resume their
normal occupations, and also those who are similarly handicapped in
obtaining satisfactory employment. “ Some degree of preference may
be given to those whose disablement is due to war service or to enemy
action,” the Ministry of Labor states.
Foreigners who have suffered disablement since the beginning of
the war are eligible, whether or not their disability is the result of enemy
action.
Training
Training is to be provided for occupations connected with munitions
work; and for other occupations specially authorized for the purpose
of the scheme, regarding which announcements will be made from
i Great Britain. Ministry of Labor Gazette (London), November 1941 (p. 212).


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407

408

Monthly Labor Review—February 1942

time to time. The occupations connected with munitions work are
draftsmanship, fitting, instrument making, machine operating, elec­
tric welding, oxyacetylene welding, electrical installation, inspection
and viewing, light lorry driving, garage mechanic, sheet-metal work­
ing and panel-beating, and radio repairing and testing. The courses
of training will be similar to those already given, with modifications
to suit disabled persons and with adaptation for particular types of
disablement.
Courses are to be given at certain Government centers adminis­
tered by the Ministry of Labor and National Service; at special centers
consisting of institutions having special experience in training the
disabled for industrial employment; at technical colleges and other
similar institutions as soon as the necessary facilities are available;
and in industrial establishments under arrangements which it is
hoped can be made with employers to train disabled persons.
The length of the training period will vary according to occupation
and nature of disability. It is anticipated that the maximum will
be 26 weeks in the majority of cases, but this period may be extended
as necessary. Provision is to be made for medical supervision to insure
that the training is suited to the disablement.
Applicants for training will be informed through local offices of the
Ministry of Labor as to the date when training will start. Every
effort will be made to arrange for training promptly and as near as
possible to the applicant’s home. Those living in areas where there
are no training facilities must be ready to leave home to secure training.
Allowances to Trainees
The Ministry of Labor and National Service will bear the cost of the
scheme. Weekly allowances to disabled trainees are as follows:
Trainees aged—
M a les
21 years and over. -shillings. _ 42
20 years____ __
_ _ d o __ 33
19 years- _
_ __do_ _ _ 30
18 years __ _
__ do_ _ _ 23
16 and 17 years__ ----- do___ _ 17

Fem ales

33
31
28
21
15

Each trainee is to receive a meal (dinner), or 5s. weekly in lieu of
food; daily traveling expenses when necessary; and dependents’ allow­
ances of 7s. 6d. weekly for a wife (and sometimes other adult
dependent) and 3s. a week for each child.
If a disabled person is trained away from the home area and con­
tinues to maintain his former home, he will receive an additional
allowance based on the lodging rate in the place where he is trained.
This allowance is normally 21s. a week. Trainees aged 16 to 18 who
live away from home will be paid the lodging rate plus a sum for
pocket money. The scale described will be paid without regard to
any pension, allowance, or other payment for disability.

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Labor Organizations

LABOR ORGANIZATIONS IN CANADA, 1940
TRADE-UNIONS in Canada may be branches of organizations in the
United States with members in both countries, or may limit member­
ship to the Dominion. The most important unions with members in
both the United States and Canada are the 4 railroad brotherhoods
and the unions affiliated with the Trades and Labor Congress of Canada
or the Canadian Congress of Labor. “ Only the Canadian members
of international unions are represented in these Congresses, but both
Canadian and American members of the international unions affiliated
with the Trades and Labor Congress are represented in the American
Federation of Labor, and those of the international unions affiliated
with the Canadian Congress of Labor are represented in the Congress
of Industrial Organizations/' The Confederation of Catholic Workers
of Canada, with its membership confined mainly to the Province of
Quebec, and the Canadian Federation of Labor are the two principal
central labor organizations with only Dominion members.
Members of trade-unions in Canada at the close of 1940 numbered
365,544—a gain of 6,577 as compared with the total for 1939, accord­
ing to returns made to the Canadian Department of Labor. The
peak membership in labor organizations in Canada was reported in
1937—a total of 384,619.
The international unions (those operating both in the Dominion
and in the United States) included, in 1940, the Canadian members of
95 organizations, the same number as in 1939. These organizations
had 2,078 branches in Canada in 1940, with a combined membership
of 226,969—an increase of 10,308 over the previous year.
The wholly Canadian organizations (including the National Catholic
Unions) numbered 31-—2 more than in 1939. These had 1,102
branches, with a total membership of 117,548, a decrease of 5,338.
Independent units numbered 88 in 1940, an increase of 3, and the
membership reported by 78 units was 21,027, a gain of 1,607 as com­
pared with 19,420 reported by 74 units in 1939.
According to the latest estimate of population (June 1, 1940), trade-unionists
in 1939 represented 3.20 percent of the total population in Canada; adding
i Canada. Department of Labor. Thirtieth Annual Report on Labor Organization in Canada (for the
calendar year 1940). Ottawa, 1941.


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409

410

Monthly Labor Review—February 1942

121,153, the number of members in the non-trade-union associations, the organized
wage earners in the Dominion at the close of 1940 represented 4.26 percent of
the population.

The distribution of the 365,544 trade-union members by industry
groups in 1940 was as follows:
Percent
of total

M em bers

All industry groups-------------------------------------------- 365, 544

100. 00

Mining and quarrying__________________________
Building------------------- --------------------------------------Metal----------------------------------- -------------------------Printing and paper making_____________________
Clothing, boots and shoes.______________________
Railroad employees------------------------------------------Other transportation and navigation__ __________
Public employees, personal service, and amusement.
All other trades and general labor__________ _____

7. 84
11. 07
10.89
7. 07
8. 03
22. 74
8. 13
10. 89
13. 34

28, 641
4o' 479
39,800
25, 835
29, 348
83, 142
29, 712
39, 807
48, 780

Trade-Union Benefits
Benefits paid in 1940 by 7 of the 31 Canadian organizations totaled
$62,974.82, an increase of $50,486.18 over the amount reported for the
same number of organizations in the previous year.
Payments by international unions for trade-union benefits in both
Canada and the United States in 1940 aggregated $20,262,021, an
increase of $391,148 over the amount reported to the Dominion De­
partment of Labor for the preceding year.
In addition to the benefits paid by the central bodies, 831 branches
of Canadian, international, and independent unions disbursed
$273,509 in benefits to their own members in 1940. The amounts
paid in the various kinds of benefits by the international and local
unions is shown in the accompanying statement.
International u n io n s

Total benefits__ ____________

. $20,262,021

Death benefits_________'____
Unemployment benefits_____
Strike benefits______________
Sickness and accident benefits.
Other benefits______________

-

1 Includes traveling benefits.
2 Includes old-age pensions.


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11, 808, 601
1 518, 569
859, 665
1, 660, 571
- 2 5, 414, 615

Locals

$273, 509
32, 151
34, 313
23, 201
129, 580
54, 264

Labor Organizations

‘411

UNION MEMBERSHIP IN CHILE, EN D OF 1940 1
DURING the course of 1940 the number of industrial labor unions in
Chile increased by 16, bringing the total number up to 629, while
the number of members of such unions decreased by 4,327, to 100,940
members. During the year the number of craft unions increased by
165, while the membership increased by 8,614, giving a total of 79,557
members of all craft unions. To organize a craft union it is necessary
that at least 25 persons having the same profession or occupation
form a group which will represent them in signing collective agree­
ments and in furthering the economic interests of the profession.
Statistics on the number of industrial and craft unions and their
membership at the end of 1940 and previous years follow:
Industrial unions:
Organizations M em bers
1937__________ ___
315
70, 913
329
78, 989
1938__________ ___
1939__________ ___
613
105, 267
1940__________ ___
100, 940
629
Craft unions:
1937__________ ___
496
47, 265
599
46, 983
1938__________ ___
1939__________ ___ 1,094
68, 171
1940__________ ___ 1,259
79, 557
1 Data are from Estadística Chilena (Santiago), August 1941, quoted in report from Sheldon T. Mills,
second secretary of the United States Embassy at Santiago. Detailed statistics and a summary of Chilean
labor unions, as of December 31, 1940, were published in Revista del Trabajo (Santiago), February-March
1941.

▼


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Industrial Disputes

RECENT STRIKES
WITH the declaration of war in December 1941 came a substantial
decrease in strike activity. Immediately after the attack on Pearl
Harbor, many strikes then in progress were called off, and a large
number of threatened strikes were averted even though in some cases
strike votes had already been taken and the dates for stoppages of
work had been set. Labor organizations in numerous localities passed
resolutions pledging full support to the Government in its war effort,
and in many cases pledged that there should be no strikes interfering
with the production of war materials. Such action was taken by
numerous local unions, city and State councils, and international
unions.
The Bureau’s preliminary estimates indicate 175 new strikes in
December, as compared with 300 new strikes in the preceding month.
About 35,000 workers were involved in the new strikes. There was a
total of 500,000 man-days of idleness during all strikes in progress in
the month. Of the estimated total of 175 strikes beginning in De­
cember, preliminary information indicates that nearly half began prior
to the declaration of war on December 8. Those which took place
after December 8 were, on the whole, small strikes.
There were 15 percent as many workers involved in new strikes in
December as in the preceding month, and the idleness during all
strikes in December was 34 percent as great as in November.
The man-days of idleness during all strikes in December amounted
to about 0.08 percent of the total time worked, as compared with
0.24 percent in November.
Comparative figures for December and other specified periods are
shown in the following table.
Strikes in November and December 1941 Compared with Averages for Preceding Periods

Item

Number of strikes beginning in month____________
Number of workers involved in new strikes____ ____
Number of man-days idle during all strikes in progress
during m onth................................... . . . . .
1 Preliminary estimates.

412

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Decern- Novem- Decernb e r1941i b e r1941» ber 1940

Averages for 5-year
period, 1935-39
Decem­
ber

Novem­
ber

300
235,000

147
42, 615

127
31,899

185
52, 738

500,000 1, 450,000

458,314

859, 534

1, 229, 731

175
35,000

413

Industrial Disputes

STRIKES IN OCTOBER 19411
THE amount of idleness during strikes in October was about the
same as in September, although there were slightly fewer strikes in
October and the number of workers involved in new strikes was sub­
stantially lower. Detailed information was obtained by the Bureau
on 405 strikes, involving nearly 199,000 workers, which began in
October. About 142,000 workers were involved in 193 additional
strikes which continued into October from the preceding month,
making a total of over 340,000 workers involved in 598 strikes in
progress during the month. The idleness in October during these
strikes amounted to about 1,889,000 man-days.
T able

Trend of Strikes, 1935 to October 1941
Number of
strikes

Year and month

Workers involved in strikes

Begin­ In prog­ End­
ning in
ing
ress
month during
in
or year month month

2,172
4, 740
2, 772

.

In prog­
ress
during
month

Ending
in
month

1,117, 213
' 788, 648

2,014

1935
1936
1937
1938
1939
1940 . . .

Beginning
in month
or year

15,456,337
13, 901,956
28,424, 857
9i 148, 273
17, 812; 219
6, 700,872

1, 860, 621
' 688| 376

1, 170, 962
576, 988

2, 613

Man-days
idle
during
month
or year

________

2, 508

January.. ________ _________
February________ ______ _____
March________ _________ ____
April__ ____
. . . . -------M ay_____ . . . ______ ________
June____ _ . .. . ..
-------July________________________
August___ __________ _____
September.. . . . . . _____
October.. ._ ------- -. ...
November_____ _ ----------________
December________

128
172
178
228
239
214
244
231
253
267
207
147

222

270
295
336
361
336
390
394
394
419
373
277

124
153
187
214
239
190
227
253
242
253
243
168

26,937
29, 509
22, 433
39, 481
53, 231
38, 542
63,126
61, 356
65, 362
71, 997
62, 399
42, 615

41, 284
38,050
43, 231
53,119
77, 124
56,403
82,970
90, 226
108,389
107, 863
101, 532
61, 576

32, 743
17, 252
29, 593
29, 226
59, 263
36, 559
54,100
47,199
72, 523
68, 730
82, 571
43, 605

246, 674
289, 992
386, 981
441, 866
665, 688
484, 007
585, 651
706, 308
780, 570
915, 014
739, 807
458, 314

232
253
338
395
450
340
413
430
423
405

341
377
485
577
646
544
592
637
609
598

217
230
303
381
442
365
385
451
416
426

91, 562
69, 769
116, 320
510,879
324, 544
141,142
140,155
208, 311
289, 738
198, 757

109, 533
125, 387
176, 798
564, 829
420, 983
222, 891
218, 612
293, 405
344, 449
340,855

53, 915
64, 909
122, 848
468, 390
339, 234
144, 434
133, 518
238, 694
202, 351
234, 422

659, 285
1,129, 556
1, 553, 860
7,106,126
2,182, 693
1, 468, 856
1, 305, 136
1, 756, 377
1, 885, 224
1, 888, 644

19Jfl

1941 1

January________________ ___
February_______________ ___
March__
. .
.....
A pril...
M a y ... _________ . . . . ----June . . . . ______ Ju ly ________________________
August. . . . . ■. .
-----------Septem ber... . . . ._ . . ------O c to b e r..____________ ____

1 Succeeding reports may show slightly different figures for the various months due to corrections and
additions made as later information is received.

The largest strikes in progress during October, in terms of number
of workers involved, were the “ captive” coal-mine strike2 which
started in September and was resumed in October after expiration of
a 30-day truce; a strike of 25,000 anthracite miners in eastern Pennsyli The Bureau’s statistics exclude strikes lasting less than 1 day or involving fewer than 6 workers.
» See M onthly Labor Review, January 1942, p. 94.


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Federal Reserve Bank of St. Louis

414

Monthly Labor Review—February 1942

vania which began September 9 and continued until October 8; a
wage strike of 20,000 Alabama coal miners from October 20 to 24;
two short strikes in the steel industry (one at the Gary, Ind., works
of Carnegie Illinois Steel Corporation and the other at the plants of
the Great Lakes Steel Corporation in the Detroit area); a 1-day strike
at the B. F. Goodrich Co. in Akron, Ohio; and a strike of welders on
the west coast.
Slightly more than 1 percent of the employed wage earners in all
industries were involved in strikes during October (table 2). In
anthracite mining nearly 3/ percent, and in bituminous-coal mining
over 18 percent, of the employed workers were involved in strikes
during the month. In the rubber products industries nearly 11 per­
cent were involved.
T a b l e 2 .— Workers Involved and Man-Days Idle During Strikes in October 1941,

Compared with Total Workers and Available Work
M a n - d a y s id le
d u rin g strik e s Man-days
Percent
c o m p a r e d to
idle
of em­
total man-days
during
ployed
w ork a v a il­ strikes
workers 1 of
able 2
per em­
involved
ployed
in strikes
worker,
during
JanuaryOctober
JanuaryOctober
1941
October October
1941
1941
1941

Industry or group

All industries_______________________________

1.20

Percent

0. 29

All manufacturing groups________________
Iron, steel, and their products excluding machinery
Machinery, excluding transportation equipment
Transportation equipment____
Nonferrous metals and their products
Lumber and allied products___________________

.52
.89
.23
.71
.78

Leather and its manufactures.. . ..

where strikesrarelv if ever oennr

0.8

1.0

.39

.07

.25

.5

36. 95
18.11
.40

3. 47
3.11
.06

3.32
7.82
.17
.07

5.8
14.8
.4

.88

Food and kindred products_________
Tobacco manufactures_____________
Paper and printing_______________ ZIIIII.I
Chemicals and allied products.....
Rubber products_________________I.ZIZ.IIZI
Mining:
Anthracite________________
Bituminous coal_____________ Z___ZZ Z
Metalliferous______________ ZZ_
Quarrying and nonmetaUic.ZIi.III

D ays

.42
.39
.30
.62
.43
.62
. 19
.23
.57
.49

~

Building and construction______________________

0.35
.53
.53
.57
1.05
.52
.76
.83
.36
.33
.46
.28
.46
.52
.16
.31
.46

Stone, clay, and glass products-__

Textiles and their products____
Fabrics___________ _______ ^
Wearing apparel_________ iik iZ Z 'i

Percent

0

0

1.1
1.1

1.5
2.3

1.1
1.6
1.8
.8

.7

1.0
.6
1.0
1.1

.3
.7

.2

workers “ “ S4 those in .occupations and professions

mlnag1e°nAiandgr0UI’S: •G ov’e rnm ®n t w orkers-

The total idleness during strikes in October amounted to 0.29
percent of the available working time. The proportion varied a

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Federal Reserve Bank of St. Louis

415

Industrial Disputes

great deal as between the various industry groups for which infor­
mation is available, running to more than 3 percent in coal mining.
In the 10-montli period January through October 1941 the idleness
during strikes amounted to 0.35 percent of the available working
time with the greatest proportions in bituminous-coal mining (7.82
percent), anthracite mining (3.32 percent), and transportation equip­
ment manufacturing (1.05 percent).
During the first 10 months of the year the idleness during all
strikes amounted to about eight-tenths of a working day per employed
worker.3 In bituminous-coal mining there were nearly 15 man-days
of idleness per worker employed and in anthracite mining there were
nearly 6. In quarrying and nonmetallic mining, on the other hand,
the idleness amounted to only two-tenths of a working day per
employed worker.
Industries Affected
The greatest amount of idleness during strikes in any one industry
group in October was in mining (371,000 man-days), caused princi­
pally by the three coal-mining strikes referred to on page 413. There
were 255,000 man-days of idleness in the iron and steel industries,
186,000 in transportation-equipment manufacturing, and 167,000 in
the textile industries (table 3).
There were 54,620 workers involved in new strikes in the iron and
steel industries (a larger number than in any other industry group),
33,723 in transportation-equipment manufacturing, 26,397 in mining,
and 16,240 in the rubber industries.
T able 3 .— Strikes in October 1941, by Industry, with Comparative Man-Day Figures

for the Preceding 2 Years
October 1941

Number of man-days
idle during the 12mouth period
Strikes begin­ Number
ending with—
ning in month of mandays idle
during
October
October
Num­ Workers month
1940
1941
involved
ber

Industry

198,757

405

Iron, steel, and their products, excluding machinery-------Jjiaso iurnaces, oitjci w e in a , a u u l u m u g
Bolts, nuts, washeis, and rivots ------------------------- - irrrn pip“
m’n p oriil fif't.iTIP'S
__________
oasi-iron
lii/uu-igo- . ----- --.
N
Cutlery (not including silver and plated cutlery;,
lu m K o ro ’ onrvnlioG
and fiYt.lVTAS
xD lUIUDolo
buppiiv/O cuxu.
uav hi
-----------

_

- - ----------

Steam and hot-water heating-apparatus and steam
btructurai anti oriianioiitcu mctat »>uin-- - - - - - rnin
aC
and
________________
llfl non
caiib
UIU. Unfhor
uiit/i tinwarft
binv
va t c ------------------.____
Tools (not including edge tools, machine tools,

7, 551, 586

1, 397, 577

376,564

462,374
24,458
55,639

114,312
249
40,482

¿2, 553

16,316
30,785
12,479
73,917

4,090
5,381
27,832

6,316
8,130
2,498
68,437

80,869
84,308
34,310
143, 297

23,428

26, 587
22,183

11,662
178,078
189,085

5,045
10,074
77,248

54, 620

254,791

14

43,833

109,456

1

100

1,200

3

1

562
18

4

1,070

2
2

9


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Federal Reserve Bank of St. Louis

22,029,011

42

6

■s See footnote 1 to table 2.

1,888, 644

_____

1,573
289
1,517
5,658

1,143
1,134
5,154

22,200

416
T able 3.

Monthly Labor Review—February 1942
Strikes in October 1941, by Industry, with Comparative Man-Day Figures
for the Preceding 2 Years— Continued
October 1941

Number of man-days
idle during the 12month period
Strikes begin­
ending with—
ning in month Number
of mandays idle
Num - Workers during
October
October
ber involved month
1941
1940

Industry

Machinery, excluding 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 products
Machine tools (power driven)
Radios and phonographs
Textile machinery and parts
Other__________

29

Transportation equipment-.
Aircraft_______
Automobiles, bodies and parts
Cars, electric- and steam-railroad (including repair
shops)________ .
LocomotivesShipbuilding,Other ___

20

Nonferrous metals and their products
Aluminum manufactures
Brass, bronze, and copper products
Clocks, watches, and other time-recording devices
Jewelry
_
Lighting equipment___
Silverware and plated ware
Smelting and refining—copper, lead, and zinc
Stamped and enameled ware
Other __

13

Lumber and allied products
F u rn itu re-..
Millwork and planing
Sawmills and logging camDS
Other ___

29
5
3
14

3,123
722

Stone, clay, and glass products
Brick, tile, and terra cotta
Cement__
Glass______
Marble, granite, slate, and other products
Pottery_____
Other ____

12
2

2, 584
377

Textiles and their products
Fabrics
Carpets and rugs___
Cotton goods
Cotton small wares
Dyeing and finishing textiles
Silk and rayon goods.
Woolen and worsted goods
Other. -.
Wearing apparel. _
Clothing, men’s ..
Clothing, women’s . .
Corsets and allied garments
Men s furnishings
Hats, caps, and millinery
Shirts and collars
Hosiery . .
Knit goods___
Other_____

33
14

7,281

2

601

Leather and its manufactures
Boots and shoes .
Leather . .
Other leather goods___


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6,322
777

99, 318
10 901

7

1,493

47, 714

9
3
3

1,267
802

15,664
2,406
1opg
ZU, /¿'I

170’ 883

112,318

33,723

185 917
8 344

2,271,379
132,855
1,182,445

1,284, 521
1,402
1,154, S30

218,299
1,140
729, 730

46,527

3

686

4
4
5

l)450

761

9

112 120

744,194
18,007
153
289,150
264,286
7,898
19, 748

73,874

4, 350
225
3, 555

53; 102

65, 735
2 015

452,374
97,692
138, 302
33, 829

217,660
2, 706
2,544

1
1

50

AQ
180

48,456

3

395

6 423
0, yo4

2,710
52,024
41, 510

10,404
5,754
24,295
46, 818
55,822

8, 663

146, 942
AH 7Q1
24 0f)g
22’ 295
39, 848

1, 387, 697
338, 915
117, 341
775, 094
156, 347

649,058
198, 644
78, 837
237,847
133, 730

34,211
5 741
1 587
7,492

635,481
173, 046

205,387
60,994
14, 282
63, 750

1

4

3
10

5
2
3

3
1
1

3
4
19

8 871

154
9

1,200

1
6

3,415
31
661

1
2
1
2

217
43
139

2

1,244
433

10
2
1

2, 921
535

7

2,186

4
j

59,337

2

2,236,052
493,675
88,691
546,453
24,806
734,999
116,852
55,487

200

iu, ozu
1A7 ARA
oU, UOO
A ¿ns
33,726
5,502
9A
16,415
iy, y/y
Q7 Am
A QOA
5 226
35,336
A £*7

116, 318
190
116, 720
209,462

11

14, 590
50, 905

1, 530,699
891, 407
6,429
380,961

698,490
241, 280
3, 267
91, 837

45, 202
60, 674
222, 809
174, 209
639, 292
28,904
146,460

2 693
1A QAO
¿J izo

36, 774
16, 582
57, 704
114, 767
185, 604
5f 912/

23,369
64,583
12, 604
44,810
457, 210
23, 354
219,819
1, 020
1, 785
48, 565
3, 474
80, 752
55, 753
22, 688

31,827
7,103
3,212
21, 512

200,225
107,064
47, 391
45, 770

124, 504
38, 952
15, 359
70,193

2 120

Industrial Disputes

417

T able 3. — Strikes in October 1941, by Industry, with Comparative Man-Day Figures

for the Preceding 2 Years—Continued
October 1941

Industry

Number of man-days
idle during the 12month period
Strikes begin- Number
ending with—
. ning in month of mandays idle
Num ­ Workers during
October
October
1941
ber involved month
1940

Food and kindred products ---- . . . ___ ________
Baking____________________________________
Beverages____ _ _ . . . _ _ . _________ ______
B utter....................................
Canning and preserving__________________ ____
Confectionery. ______________________ ______
Flour and grain mills.......................... . .. ___
Ice cream__________________________________
Slaughtering and meat packing________________
Sugar refining, cane ____ ___ . ____________
Other_____ _____________________________ ._

26
7

Tobacco manufactures_______ __ _
____
Chewing and smoking tobacco and sn u ff.._ __ . . .
Cigars.. _ _ ____ _______ .. _ _ ....... ............
Cigarettes____ . . . . . . _____ ____________ ____

130, 500
29, 665
3, 572
564
44, 944
13, 400
3, 215

22, 916

942,260
236,919
25, 025
1 416
129, 398
57, 480
47, 461
901
192, 527
160, 899
90, 234

639

4,052

99, 880

2
1

318
321

866

3, 186

96, 694
3,186

89, 809
18
89, 791

11
2
1

2,225
287
270

36,158
1, 067
10, 330

226, 632
33, 597
36, 518

118,332
39, 298
22,985

4
4

1, 551
117

23,460
1, 301

39,165
34, 000
83, 352

6, 251
12,612
37,186

Chemicals and allied products ________ __ .
10
Chemicals._ _ ________ . . . . . _
Cottonseed—oil, cake, and meal_______ _ __
2
Druggists’ preparations. . . . _
____
___ ' 1
Explosives. _______________________________
Fertilizers__________________________________
Paints and varnishes.. _________ _____ ___ _
3
Petroleum refining. .. ____________
____ .
1
Rayon and allied products________ _________
Soap____________________ ____________ ____
Other_____________________________________
3

1,991
140
230

64,719
30, 400
1, 720
2,760

172,888
14, 704
12, 845

838
375

18, 279
2,406

336, 772
170, 933
3,141
3, 623
6, 082
1, 566
41, 741
7,577

408

9,154

334
101, 775

3 033
401
10, 578
9.747
85,000
500
35, 070

Paper and printing.
_
.
.
...
Boxes, paper_______________ . . . _ . . . ______
Paper and pulp__________ _____ _____ _ . . .
Printing and publishing: •
Book and job __________________________
Newspapers and periodicals_______________
Other_____ __________________________ ___

2

7, 676
5, 338
97

144,016
75,476
1,785

4
3

267
153
21

5,129
12, 940
2,475

3

54

23, 295

6

1,746

3

1

22, 729
12,411

1,010

Rubber products... ..
..
.
_________ .
Rubber boots and shoes... . . . . _________ . . .
Rubber tires and inner tubes____________
___
Other rubber goods________________ _________

2

16, 240

16,856

1
1

16, 212
28

16, 212
644

158, 585
19, 753
68, 684
70,148

83, 703
690
67, 268
. 15, 745

Miscellaneous manufacturing __
.
.. ___
Electric light, power, and manufactured gas_____
Broom and brush______ . . _____ . . . . .
Furriers and fur factories___ _______ _________
Other ____
. . . . . . ____ . . .

24

2,700
30
47
30
2,593

30,407
480
470
570
28,887

315, 941
12, 679
10, 820
9,648
282, 794

200, 421
2, 356
1,355
33, 663
163,047

26, 397
606
25,441
350

370, 753
57,329
312,300
1,124

6, 648, 388
429, 344
6,174,987
31,178
7, 582 2, 504
2, 793

321,436
107, 419
197,463
11,942
3,220

19
3

11
1

3, 249
213
1,590
154

43, 760
1,153
15, 792
5, 662

1
2
1

790
331
171

19, 300
1,491
362

389,975
74, 034
162,800
67, 247
24,-541
S5, 274
2i; 203
2,577
532
1,767

831,851
383,885
175,776
12,370
241,065
’ 779
568
16, 594
814

50
14
36

7,430
2, 554
4,876

96, 618
27, 473
69,145

985,701
149, 524
836,177

408,177
90,066
318,111

Extraction of minerals____
.
. . . . ___ . . . . . .
Coal mining, anthracite . . ________ . . .
Coal mining, bitum inous.. . . . ___ ______ _ _.
Metalliferous mining. __ _ ________ . . . . . . .
Quarrying and nonmetallic mining____ ___ _
Crude petroleum producing____ . . . . . . . . . .
Other
___ . . . . . . .. . .. ._
____ .
Transportation and communication.. .
...
Water transportation_____ . . . . _________ .
Motortruck transportation __________________
Motorbus transportation____ ______ _ ____
Taxicabs and miscellaneous. . . . . . ______ _
Electric railroad.. _ .
______ . . . .
Steam railroad. __ . . . _ _ _______ . . . _____
Telephone and telegraph
_. .. ____ . . .
Radio broadcasting and transm itting_________
Other
. . . . _________ ____ ____
Trade____. . . . __ . . . ____ _ .. ______ _. . ._
Wholesale____ __________________________ . . .
Retail__________ -.
. . ____ __________


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1
1
1
21

9
1

5
3

l,1392

418
T able 3.

Monthly Labor Review—February 1942
Strikes in October 1941, by Industry, with Comparative Man-Day Figures
for the Preceding 2 Years— Continued
October 1941

Number of man-days
idle during the 12month period
Strikes begin­
ending with—
ning in month Number
of mandays idle
Num ­ Workers during
October
October
ber involved month
1941
1940

Industry

Domestic and personal service
Hotels, restaurants, and boarding houses
Personal service, barbers, beauty parlors
Laundries_____
Dyeing, cleaning, and pressing
Elevator and maintenance workers (when not
attached to specific industry)
Other_____
Professional service
Recreation and amusement
Professional _
Semiprofessional, attendants, and helpers
Building and construction
Buildings, exclusive of PWA
in stru c tio n (bridges, docks, etc., and
PWA buildings)
Agriculture and fishing. .
Agriculture__
Fishing_____

19
2

2 606
2,152
232
04
103

59, 863
41,940
10,919
594

296,111
168,255
46, 667
53,415
9,033

136, 551
63, 503
3,562
27,866
38, 341

i

35

5,645

17,973

2,976
303

81

243

37, 659
26, 266

11
2

2
1

8

8

10, 753

24,096
19,682
1, 346
3,068

33
28
5

6 255
5 618

30, 000
25,927

944, 632
890, 528

453,498
372, 271

4,073

54,104

81, 227

2
2

63

483

398, 895
394,179
4, 716

244, 394
95, 791
148, 603

7

733

4, 503

132,662

32,098

i

WPA and relief projects...
Other nonmanufacturing industries

3,454

States Affected
There was more idleness during strikes in Pennsylvania (292,000
man-days) in October than in any other State, largely because of the
coal-mining disputes referred to previously (table 4). New York had
nearly 275,000 man-days of idleness, the largest amounts resulting
from strikes of bakery drivers in New York City and shipyard workers
in Brooklyn. Michigan had over 211,000 man-days of idleness, the
largest amount resulting from the strike at the Great Lakes Steel
Corporation in the Detroit area. Alabama had 159,000, due largely to
the strike of coal miners.
There were more than 27,000 workers involved in new strikes in
Indiana during October, 26,500 in Alabama, 25,900 in Ohio, and
25,100 m New York. The greatest number of new strikes in any
State was 90 in New York. Pennsylvania had 44, California 31 and
Ohio 29.


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Federal Reserve Bank of St. Louis

419

Industrial Disputes

T able 4. —Strikes in October 1941, by States, with Comparative Man-Day Figures for

the Preceding 2 Years
Strikes beginning
in October 1941
State
Workers
Number involved

Number of
man-days
idle during
October

Number of man-days idle
during the 12-month
period ending with—
October
1941

October
1940

All States_______ _________________

' 405

198,757

1,888,644

22,029,011

7, 551,586

Alabama______ . . . . . .
Arizona. _____________ _____ ____
Arkansas. ________________________
California......... _. _ ________ ____
_______________
Colorado____
______________
Connecticut_____
Delaware____________ . . .
__ . . .

13

1
2

26,518
150
2,839
9,667

159,496
600
10,979
88,038

5
1

606
150

8, 764

300

811, 555
18,173
51,126
1, 761, 754
55,233
263, 210
54,773

32,298
2,385
83,157
604,718
2,293
73,141
10,743

1

23

2,590
82
5, 619
27,452
295

161
1,438
18,702
565
125, 306
68, 080
3,437

26, 052
44,737
78,448
10, 706
1, 533, 660
659,743
234,101

13,582
94,836
38,712
2,615
468,907
250,802
20,796

230
813
564
14
667
763
16, 323

1,023
23,426
11,674
168
5,329
24,729
211,386

24,598
736,643
66,687
44,870
162,060
483,084
1,870, 590

2,800
30,445
38,198
2,423
138,233
257,465
1,250,748

115
3,638
1,409
15

3,579
10,448
27,953
36

82,264
20,819
281,854
7,495
3, 929
1,409
16,808

106,806
21,059
287,154
7,179
1, 682
1, 056
5,916
372,088
6, 276
1,220,005
86,992
1,156
292,424
19,006

District of Columbia. _ ___ ____
Florida.___________________ ______
Georgia________________ _ . ______
Idaho____
.....
Illinois____ ___________________ ____
Indiana_________________________
Iowa_____________________________
Kansas_____ ___________________ .
Kentucky_______ _________________
Louisiana____ .
. . .
Maine_______ . . . . . .
M aryland..
__________ .
Massachusetts__
___
M ichigan... __ _ _____________ ___
M innesota__ _ . _______ ___..
Mississippi__________ ._ _____ _
Missouri . . . _ ___________ _ ___
M ontana _____
Nebraska______ ._
Nevada___ ________ _ . . .
New Hampshire____________________
New Jersey_____________ . . . __ ___
New Mexico________
_ ______ .
New York______ _______
North C arolina______________ _____
North Dakota_______ _____ ______ _
Ohio_____ _____
Oklahoma______ .. _______
Oregon___ . . . _______
Pennsylvania__ __ ____ ____ _ _ . . .
__ ._
Rhode Island___. . . _________
South Carolina. ________ _ _ ____
South Dakota___ ______ __ _ . . . ._
Tennessee ........... _
Texas_____________ . .
U tah____________________________
Vermont_____________
________ _
Virginia_______ __ . . . _________ ...
Washington ._ _____________ ■______
West Virginia___._ _________ _. . . . _
W isconsin_____________ _________
_________
Wyoming_____

31

4
3

1

23
14
3
2

7
4
1

4
4
27
4

2
11
2

121

2

393

1,893

28

5,763

121,087

90
5

25, 095
1,916

274,834
16,027

29

25,921
332

142,265
647

973,880
26,260
2,131,257
127, 583
1,899
1,249,349
9,258

4

530
19,445
584
184

6,226
292,105
4,454
396
2, 216
53; 247
23,432

188,840
3, 914,433
80,930
34,012
6,052
435, 068
149, 012

103,717
794,895
17, 794
54,817
241
52,731
73,976

1,266
621
6,350
67, 545
62,988
5,428

42,916
2, 537
219; 567
759,149
1,734,898
531,130
4, 600

1,837
8,901
145, 260
280,184
49,279
119, 708
150

2

44
2
1
11

8

1,652
3,657

2

111

4

1,343
10,032
950
186

7

6
4

1The sum of this column is more than 405. This is due to the fact that 10 strikes which extended across
State lines have been counted in this table as separate strikes in each State affected, with the proper allocation
of number of workers involved and man-days idle.

Number of Workers Involved
There was an average of 568 workers per strike in the 3,679 disputes
beginning in the first 10 months of tiie year. The average per strike
in those beginning in the month of October was 491 workers. Slightly
438471— 42

-10


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Federal Reserve Bank of St. Louis

420

Monthly Labor Review—February 1942

more than half (52 percent) of the strikes beginning in the 10-month
period involved less than 100 workers each, 40 percent involved
between 100 and 1,000 workers each, and 8 percent involved 1,000 or
more workers (table 5). There were 10,000 or more workers involved
in each of 27 strikes in the latter group, four of which were new strikes
beginning in October.
T able 5 .— Strikes Beginning in the First 10 Months of 1941, by Industry Group and

Number of Workers Involved
Number of strikes in which the number of workers
involved was—•
Industry group

Total

All industries:
Num ber._
Percent...

3,679
100.0

6
20
100
250
500 1,000
and and and and and and
under under under under under under
20
100
250
500 1,000 5, 000

593 1,309
16.1 35.5

754
20.5

425

11.6

301

8.2

5.000 10, 000
and
and
under over
10.000

6.8

249

21
0.6

27
0.7

M a nufacturing

Iron, steel, and their products, excluding
machinery_______________________
Machinery, excluding t r a n s p o r t a t i o n
equipment________________________
Transportation equipment____ 17
Nonferrous metals and their products
Lumber and allied products____________
Stone, clay, and glass products______
Textiles and their products_____________
Leather and its manufactures________
Food and kindred products__________
Tobacco manufactures_____________
Paper and printing________________
Chemicals and allied products_____ ~
Rubber products____________________
Miscellaneous manufacturing_____ 7 7 7 .

312

13

67

76

63

43

40

5

5

262
166
108
259

16
4
17
24

46
18
16
32
13
60
15

21

1

11
6

1

1
6

64
7
42

47
28
25
80
32
83

36
32
5
18

425
79
227

94
24
33
98
48
146
30
87

121

8

116
72
39
143

11

30

12

44
2

22
1
11
11

8

40
13
19

1

3
28

40
31

29
14

58

33

7
13

10
8

5
39
119
58
7

27
90
156
73
13
132

17
50
40
31

22
10
21

21
11

74

34

8

8

6

4
4

37
9
31
2
12

4

7

1

Ï
1

2

4
3
3

1

1

N o n m anufacturing

Extraction of minerals_____ ___________
Transportation and communication.
Trade_____________________________
Domestic and personal service. . 7
Professional serv ice..._________________
Building and construction_____
Agriculture and fishing_______________ 7
WPA and relief projects___________ 7 7 7
Other nonmanufacturing industries.. . . ___

122

207
349
178
24
342
23
4
103

68
1
2

27

11
1

42

2

6
1
22

4
1

1

4

21
6
8
6

1
1

8

5

13

14

2

5

6
1

2

1

2

7

Causes of Strikes
About 37 percent of the workers involved in the October strikes
were concerned primarily with issues of wages and hours; 29 percent
were striking primarily over union-organization issues; and 34 percent
were involved in strikes over plant working conditions, questions of
jurisdiction, union rivalry, or other grievances (table 6). Included in
the latter group were two rather large stoppages. One was at the
Gary, Ind., works of the Carnegie-Illinois Steel Corporation, where
the cianemen struck because of the company’s discontinuing the


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Federal Reserve Bank of St. Louis

421

Industrial Disputes

work of relief cranemen after the hot weather, resulting in a reduction
of force. The other, a 1-day strike at the B. F. Goodrich Co. plants
in Akron, Ohio, was a protest against the company s failure to dis­
charge two employees accused of beating a union organizer near the
Goodrich plant at Oaks, Pa.
About 52 percent of the new strikes in October were primarily
over union-organization issues, and 35 percent were disputes over
wage-and-hour issues, principally wage increases.
In the 10-month period, January to October 1941, half of the 3,679
strikes, including 33# percent of the total workers involved, were
due principally to the issues of union recognition, closed or union
shop, discrimination, or other union-organization matters; 36 percent
of the strikes, including 49 percent of the workers involved, were
primarily over wage-and-hour issues; and 14 percent of the strikes,
including 17 percent of the workers involved, were over \arious
grievances, including questions of jurisdiction, union rivalry, sym­
pathy, and many specific grievances over conditions of work.
T able 6. — Strikes Beginning in October 1941, by Major Issues Involved, with

Cumulative Figures for the Period, January-October 1941
Strikes beginning in October Strikes beginning in the period,
January-October 1941
1941
Major issue

Per­
Per­
Num­ cent Workers cent
of involved of
ber
total
total

Num­
ber

Per­
cent
of
total

198,757

100.0

3,679

100.0 2,091,177

100.0

37.6
33.6
1.7
2.3

1,326
1,158
55
106
7

36.0 1,032, 408
959,902
31.4
39, 515
1.5
32,734
2.9
257
.2

49.3
45.8
1.9

57,033
4,983
16,085

28.7
2.5

1,832
329
723

49.8
8.9
19.6

33.5

1,936
4,188
11, 293
16,970
1,578

1.0
2.1
.8

197
162
80
303
36

5.4
4.4

5.7
8.5

699, 582
184, 899
204, 004
46
24,839
40,076
85,179
141, 654
18, 885

67, 000
760
7, 766
16, 834
41, 640

33.7
.4
3.9
8. 5
20.9

521
33
150
76
251

14.2
.9
4.1

359,187
32, 224
112, 500
26, 411
187, 304
748

17.2
1. 5
5. 4
1. 3
9.0
0)

405

Wages and h o u rs...----------------Wage increase-------------------Wage decrease_____________
Wage increase, hour decrease.
Wage decrease, hour increase.

141
126

Union organization-------------- ---------Recognition_____________------Recognition and wages'.------------Recognition and hours--------------Recognition, wages, and hours----Discrimination----------------Strengthening bargaining position.
Closed or union shop------------- . . .
Other_____________ ___________

211

52.1

88

21.7

20

4.9
5.9
1.5

Miscellaneous........................
Sympathy_____ ______
Rival unions or factions.
Jurisdiction 2------------- Other_______________
Not reported-----------..-

7

35
24

6

35
3

j

100.0

8.6

8.6

.7

53
5
13

13.1

25

6.2

10

Per­
cent
of
total

34.8 " 74,724
66,890
31.1
3,300
2.0
4,534
1.7

All issues.

8

Workers
involved

1.2

3.2
2. 5

8.1

2

11

.1

2.2
8.2
1.0

2.1
6.8

.3

1.6

(>)
8.8

9.8
0)
1.2

1.9
4.1
6.8

.9

2 i f " proteblntbat 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.


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422

Monthly Labor Review—February 1942

Labor Organizations Involved
About 53 percent of the strikes beginning in the first 10 months of
the year involved unions affiliated with the American Federation of
Labor. These strikes included one-fourth of the total workers in­
volved (table 7). Unions affiliated with the Congress of Industrial
Oiganizations were involved in 38 percent of the strikes, including
about 69 percent of the total workers involved in all strikes beginning
during this period.
In about 4 percent of the strikes, rival unions were involved. Most
of these were A. F. of L. versus C. I. O., although in some cases un­
affiliated organizations were contesting each other or an A. F. of L.
or C. I. O. union.
T able 7 — Strikes Beginning in the First 10 Months of 1941, by Affiliations of Labor

Organizations Involved
Strikes

Workers involved

Labor organization involved
Number

Percent of
total

Number

Percent of
total

Total_________________

3,679

100.0

2,091,177

100.0

American Federation of Labor
Congress of Industrial Organizations
Unafliliated unions_____
Railroad brotherhoods
Two rival unions____ ____
Company unions___ . . .
No organization... .
Organization involved, but type not reported
Not reported_____

1,965
1,387
58

53.4
37.7

532,066
1, 431,905
24,766
82
81, 491
2,995
17,697
7
168

25.4

1.6
.1

2

141
15
109
1
1

3.8
.4
3.0
0)
(0

68.6
1.2
0

3.9
.1
.8

0)
0

1 Less than a tenth of 1 percent.

Duration of Strikes
Ihe average duration of the 3,616 strikes ending in the first 10
months of 1941 was 18 calendar days. About 41 percent of these
strikes were terminated in less than a week after they began, 43 percent
lasted from a week up to a month, and 16 percent were in progress for
a month or longer (table 8). In the last group there were 97 strikes
(2.7 percent of the total) which lasted 3 months or more. Most of
these were small strikes, only 11 involving 500 or more workers.


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423

Industrial Disputes

T able 8 — Strikes Ending in the 10-Month Period, January-October 1941, by Industry

Group and Duration
Number of strikes with duration of—
Industry group

Total

All industries:
N um ber...-------------------------- ----------------Percent_______________________________

3,616
100.0

1 week
2 and
and 1 and
3
Less and Yless
less
less
th an l less thanl than 2 than 3 months
week than^é month months months or more
month

1,465
40.5

911
25.2

659
18.2

150
85
78
32
70
31
147

73
70
46
34
58
33
107
27
54

38
53

388
10.7

96
2.7

97
2.7

M anu fa ctu rin g

Iron, steel, and their products, excluding ma­
chinery_____i -------------------- ----------------Machinery, excluding transportation equipm ent..
Transportation equipment--------------------- ------Nonferrous metals and their p ro d u cts...............
Lumber and allied products..... ...........................
Stone, clay, and glass products..------------ -------Textiles and their products-------------------------—
Leather and its manufactures----------------- ------Food and kindred products------- ------ ----Tobacco manufactures...... ......................... ............
Paper and printing------------------- -----------------Chemicals and allied products...........- ................Rubber products------------------ ---------------- -----Miscellaneous manufacturing-------------------------

300
255
154
105
256
116
412
75
233

22

89

6

113
69
39
139

’ Jo~

2
21

20

22

18
45

37

10

22

24
71
22

89
15
47
2
21
12

4
29

2

4

"3
13
5
16

1

9
2

3
1
2

N o n m anufacluring

Extraction of minerals..----- ---------------- >
---------Transportation and communication----------------Trade-------- -------- ----------.--------- ------ ----------Domestic and personal service.----------------------Professional service-------------------------------------Building and construction---------- ----------------- Agriculture and fishing--------------------------------W PA and relief projects---------- --------------------Other nonmanufacturing industries-----------------

121

206
344
177
25
342
23
5
101

66

109
132
79
13
174
11
2

52

26
48
77
39
5
90

12

31
73
33
3
44

8

2

23

11

1

1

Methods of Negotiating Settlements
Government officials or boards assisted in the settlement of 53
percent of the strikes ending in the period, January to October (table
9). About 72 percent of the total workers involved were included in
these strikes. The National Defense Mediation Board assisted in
the settlement of 68 of these strikes, which included 488,374 workers.
Employers and union representatives negotiating directly, settled 34
percent of the strikes including about one-fourth of the total workers
involved. In 10 percent of the strikes, including less than 4 percent
of the workers involved, no formal settlements were reached. In
these strikes the workers either returned on the employers’ terms or
lost their jobs entirely when new workers were hired or the plants were
closed or moved to other localities.


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424

Monthly Labor Review—February 1942

T able 9. —Methods of Negotiating Settlements of Strikes Ending in the 10-Month Period,

January-October 1941
Strikes

Workers involved

Settlement negotiations carried on by—
Number
Total_____________________

. . _

Employers and workers directly
.. .
Employers and representatives of organized workers
directly____________ _________ _
Government officials or boards . ______ _
Private conciliators or arbitrators_____ _
Terminated without formal se ttlem en t__ .

Percent of
total

Number

Percent of
total

3,616

100.0

2,002, 715

73

2.0

9, 345

.5

1,433, 482
3,959
73,000

71.6

1,224
1,917
32
370

33.8
53.1
Q
10! 2

2
¿6

Results of Strikes
About 42 percent of the strikes ending in the first 10 months of the
year resulted in substantial gains to the workers (table 10). These
strikes included 41 percent of the total workers involved. In 36
percent of the strikes, involving 43 percent of the workers, compromise
settlements were reached. There were little or no gains to workers as
a result of 14 percent of the strikes, which included 6 percent of the
total workers involved.
T able 10.—Results of Strikes Ending in the 10-Month Period, January-October 1941
Strikes

Workers involved

Result
Number

Percent of
total

Number

Percent of
total

Total__________________ _ .

3,616

100. 0

2, 002, 715

100.0

Substantial gains to workers___ Partial gains or compromises,-- - - - - Little or no gains to workers.
- Jurisdiction, rival union or faction settlements
Indeterminate____ - - - - Not reported__________________ „ _

1, 528
1,303
508
215
48
14

42.4
36.0
14.0
5.9
1.3
.4

820, 250
864,396
124, 658
121, 202
70,729
1, 480

41.0
43.1
6.2
6.1

3.5
.1

Table 11 shows the results of strikes ending in the first 10 months
of 1941 in relation to the major issues involved. There were more
union-organization strikes won and lost than wage-and-hour strikes,
but fewer, proportionately, were compromised. There was a slightly
larger proportion of workers involved in the successful wage-and-hour
strikes than in the successful union-organization disputes, but about
the same proportion of workers in each group were involved in the
strikes which (were compromised and in those which were lost.
The results of about 7 percent of the strikes, including nearly 10
percent of the workers involved, were indeterminate and could not be
evaluated in terms of gains or losses to all workers involved. Many
of these were jurisdictional or rival union strikes.


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425

Industrial Disputes

T able 11.— Results of Strikes Ending in the 10-Month Period, J anuary-October 1941,

in Relation to Major Issues Involved
Strikes resulting in—
Major issue

Total

Substan­ Partial
gains or
tial
gains to compro­
mises
workers

Little
or no
gains to
workers

Jurisdic­
tion, rival
union or
faction
settlements

Inde­
ter­
minate

Not
reported

S trik es

3, 616
1,306
1, 793
' 517

All issues___________
Wages and'hours—
Union organization
Miscellaneous____

1, 528
587
851
90

508
133
315
60

1, 303
580
607
116

215
______ __ _ _
215

48
4
18
26

14
2
2
10

1 .3
.3
1 .0
5 .0

0 .4
.2
.1
1 .9

70, 729
2 ,323
30,170
38, 236

1, 480
201
34
1, 245

Percentage distribution
100.0
100.0
100.0
100.0

All issues.......................
Wages and hours...
Union organization
Miscellaneous------

4 2 .4
4 4 .9
4 7 .4
17.4

3 6 .0
4 4 .4
3 3 .9
2 2 .4

14.0
1 0 .2
17.6
11 .6

5 .9
4 1 .7

W orkers in v o lv e d

All issues--- ------ -------Wages and hours-—.
Union organization.

2, 002, 715
' 634, 087
342, 008

820, 250
4K6 6Q6
266^ 997
66, 558

864,
478
293'
91,

396
787
897
712

124,
58,
42,
23,

658
614
989
055

121, 202
121, 202

Percentage distribution
AU issues____________
Wages and hours—
Union OrganizationMiscellaneous____

100.0
100 0
100.0

4 1 .0
47 .5

491 1
ia s

43.1
46 6
46 3
2 6 .8

6 .2
5. 7
6. 8
6 .7

6 .1
3 5 .4

3 .5
.2
4. 8
11 .2

0)
0)

0 .1
.4

1 Less than a tenth of 1 percent.
W W W

ACTIVITIES o f t h e u n i t e d s t a t e s c o n c i l i a t i o n
SERVICE, DECEMBER 1941
THE United States Conciliation Service during December disposed
of 466 situations, involving 226,245 workers (table 1). The services
of this agency were requested by the employers, employees, and
other interested parties. Of these situations 92 were strikes and
lock-outs involving 21,669 workers; 221 were threatened strikes and
controversies involving 178,582 workers. Five disputes were certified
during the month to the National Defense Mediation Board, and
jurisdiction was assumed by other agencies in 20 others. The re­
maining 128 situations included investigations, arbitrations, requests
for information, consultations, etc.
The facilities of the Service were used hi 28 major industrial
fields, such as building trades, and the manufacture of foods, iron
and steel, textiles, etc. (table 2), and were utilized by employees and
employers in 40 States and the District of Columbia (table 3).

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426

Monthly Labor Review—February 1942

T a b l e I .— Situations Disposed of by United States Conciliation Service, December 1941,

by Type of Situation
Type of situation

Workers
involved

Number

All situations handled__________

466

99A OAK

Disputes____________
..
Strikes . .
__________ .
Threatened strikes ____________
Lock-outs______________________
Controversies______ ______
Other-situations________
Investigations________________
Technical investigations and services. ._
Arbitrations_____ ___ ______
Bequests to conduct consent elections. _
Requests for information.. ______
Consultations____ _ . _
Special services of Commissioners
Complaints__ _ _ ___
Disputes referred to other agencies during negotiations
To National Defense Mediation Board
To National Labor Relations Board.
To other Federal agencies
____
To nongovernmental agencies ___

313
91
149
i
72
128
40
27
23

9fWT 9*1
91 AA7
111 Q7Q
O
A7 zuy
9HO
o/,
17
1
in
11, 11U
8 392
3 388
Q y'ïo
Q/1A
of

7
7
8

Q
31
1, 265
32
8,884
2, 707
5 607
250
320

T a b l e 2.

47

1

15
25
5
15
2

3

Situations Disposed of by United States Conciliation Service, December 1941,
by Industries
D isp u tes

O th e r s itu a tio n s

T o ta l

I n d u s try
N um ­
ber
A ll i n d u s t r i e s _____ ____
A g ric u ltu re _______________
A u to m o b ile________ .
B u ild in g tra d e s _____ ____
C h em ica ls____ _________
C o m m u n ic a tio n s ____
D o m estic a n d p e rs o n a l.. . . .
E lectrical e q u ip m e n t. . . ___
F o o d ________ .
F u rn itu re a n d fin ish ed lu m b e r
Iro n a n d ste e l__________ .
L e a th e r________
L u m b e r ___________
M a c h in e ry __________
M a ritim e ______
M i n i n g ... _______
N o nferrous m e ta l s .. .
P a p e r___________
P e tro le u m ................... _
P r in tin g _______ . . .
P ro fessional_______
R u b b e r _______
S tone, clay, a n d glass_______
T e x tile ............. .......
T o b a cco _______
T r a d e ______________
T ra n s p o rta tio n ______
T r a n s p o rta tio n e q u ip m e n t .
U tilitie s ......... .......
U nclassified . . . ___


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N um ­
b er

338

209,135

128

2
8

381
2,114
14,169
1,141
4,200
1,440
5,524
9, 960
2.827
17, 803
396
4.828
25,053
33, 647
182
6,551
560
132
583
18
5,876
2,443
31,449

1
4

22
11
2
12

.

W orkers
in volved

15
30
15
40
4
14
23
15
2

16
4
2

4

i
5
16
22

5
18
20
2
8

268
3,421
29,493
2, 065
2,611

6

i
i
4
5
7
12

18

3

3

5

W o rk ers
in v o lv ed

N um ­
b er

17 110

AA(\
ifcOO

99*

O
19
1Z
Zo
19
1Z

9*8
17*
I/O
10

649
458
2,546
1,284
1, 559

ZOO
9AA
47Q

2

AOD

1

110

3
16
20

3/
27
58
7

117/
9Ö
Zo
I1t7
2

17
4

2
4

294
200

A

0O
1

5
2
20
1

9
4
5
3

5

35

A 117
OK

1 n*7

534
*
882
433

18
AO
‘±2,

1
1a

OO
zz
25
5

1Q
10

W orkers
in v o lv ed
226, 245
2,957
14,427
1, 316
4, 210
2,089
5,982
12, 506
4,111
19, 362
632
5,094
25,532
34,077
182
6,661
560
426
18
5,876
2,478
35, 566

ZO

1,325
3,955
29,498
2,947
3,044

427

Industrial Disputes

T able 3.—-Situations Disposed of by United States Conciliation Service, December 1941,

by States
----------- -------------------------- ■ - “
State

Num­ Workers in­ Num ­ Workers in­ Num ­ Workers in­
volved
ber
volved
ber
volved
ber

All States_______ ____ ___ ____ _______
Alabama
Arizona
California

____ - - - - - - - - -- _____ —
_

_ ______ -

___ _ ____ - - —
Connecticut
Delaware
___
-----District of Columbia
_
—
Elop'da
- - _____ ___ - —
Georgia
___ ___ - -- - —
Illinois
___- _____ - - - -Indiana
__________
Towa
______ - __—
Kansas
_____________ ___
Kentucky
_____
—
Louisiana
________ _______ Massachusetts
____ ___ - -- -----M ichigan.-------- ------------------------------Minnesota
_______Missouri

_______ - --

- —

___ _ ______ - ------New Jersey
New Y o rk ...-----------------------------------North Carolina
______
- Ohio
________ - __ ---Oklahoma
______
-_____ ____ - -------Oregon
Pennsylvania
_______- _______
"Rhode Island
___.
__
South Carolina
- __
Tennessee
___
-- —
Texas
___ - - __-Virginia
_ _ _ __—
Washington
Wisconsin

Total

Other situations

Disputes

_

------------

338

209,135

128

17,110

466

226,245

7

1,259
5
717
35,021

5

12

1,949

1

690
3

12

2,606

3

208

5

92
71
1,145

2

4
34

200

1

2, 573
2,088
181
6, 557
741
580
25, 637
3, 752
444
376
2,800
5,849
4,681
19, 570
7, 577
187
44
2,116
285
381

5
3
5
17
7

1

23

12

7
4
2
11

5
7
17
4

1
11
2
1

3,008
34, 318
7.094
7,167
917
2,254
14,464
3,430
7,055
1,767
488
2, 776
224

13
21

4
30
4
6

26

2
6
11
2
10

5

1

4

'

6

546

1

6
6

1

4
3

1,679
232
281
276
399
77

2

522

7
8

3
2

717
37, 627

4

2,781
2,089
273
6,628

1
8

10

23
13

1

30

20
10
6
6

14
5
9

3

102

20

1

5

5

3

256

14

13

564
116
1,323
1,417
443

7

1, 715

3
3
4
1
2

918
59
342
25
1,130

1

400

1
2
6
6

1
1

2

1
1

11

8

3
4
46

1

1,886

580
27, 316
3,984
725
652
3,199
5, 926
4,681
20,092
7, 679
192

7

2, 372
28o
381
564
3,124
35, 641
8, 511
7,610
918
2, 255
16,179
3,441
7, 973
1, 826
830
2,801
1, 354

5

946

2

i
i
15
27
10

43
5
7
33
4
9
14
6
11

1

NATIONAL WAR LABOR BOARD ESTABLISHED
THE activities of the National Defense Mediation Board, established
in March 1941, were drastically curtailed when representatives of the
Congress of Industrial Organizations resigned and most of the C. I. O.
unions withdrew their cases, following the Board s adverse decision
in the captive mine union-shop dispute late in November. This,
together with the added necessity for uninterrupted production fol­
lowing the outbreak of war, caused the President, on December 17,
to summon a conference of labor, employer, and Government repre­
sentatives 2 to formulate means for eliminating strikes and lock-outs
in defense industries.
1 See Monthly Labor Review. January 1941 (pp. 94-97), for information on captive coal-mine strike
and settlement.
. ,„ ,
t- . ,
2 Government moderators were William H. Davis, chairman ot the National Defense Mediation Board,
and Senator Elbert D. Thomas, chairman of the Senate Committee on Education and Labor. The 1 . .
of L. and the C. I. O. each appointed five representatives, including Presidents Green and Murray.


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Federal Reserve Bank of St. Louis

428

Monthly Labor Review—February 1942

Employer and labor delegates came to the conference with diver­
gent opinions regarding the disposition of closed-shop or ^unionsecurity” disputes.^ The employer group maintained that existing
union-status conditions should be frozen for the duration of the war
and that disputes over union recognition, beyond that protected by
the National Labor Relations Act, should not be a matter of concilia­
tion or arbitration by a Government agency. Both the American
Federation of Labor and the Congress of Industrial Organizations’
delegates insisted, however, that disputes over union status should
be subject to the same consideration as those over wages and other
matters.
The conferees reached no agreement on this controversial issue.
However, by implication, union-shop disputes were included among
other disputes to be handled by the War Labor Board, the President
stating in his acceptance of the conferees’ agreement on December 23—
I am happy to accept your general points of agreement as follows:
1. There shall be no strikes or lock-outs.
2. All disputes shall be settled by peaceful means.
3. The President shall set up a proper War Labor Board to handle these
disputes.
I accept without reservation your covenants that there shall be no strikes or
lock-outs and all disputes shall be settled by peaceful means. I shall proceed at
once to act on your third point.
Government must act in general. The three points agreed upon cover of neces­
sity all disputes that may arise between labor and management.
The particular disputes must be left to the consideration of those who can study
the particular differences and who are thereby prepared by knowledge to pass
judgment in the particular case. I have full faith that no group in our national
life will take undue advantage while we are faced by common enemies.

On January 12, 1942, the President provided for the establishment
of the National War Labor Board.
The character and procedures of the Board are set forth in the
order as follows:3
There is hereby created in the Office for Emergency Management a National
War Labor Board, hereinafter referred to as the Board. The Board shall be com­
posed of 12 special commissioners to be appointed by the President. Four of
the members shall be representative of the public; 4 shall be representative of
employees; and 4 shall be representative of employers. The President shall
designate the Chairman and Vice-Chairman of the Board from the members
representing the public. The President shall appoint 4 alternate members repre­
sentative of employees and 4 representative of employers, to serve as Board
members in the absence of regular members representative of their respective
groups. Six members or alternate members of the Board, including not less than
2 members from each of the groups represented on the Board, shall constitute a
quorum. A vacancy in the Board shall not impair the right of the remaining
members to exercise all the powers of the Board.
8 Executive Order No. 9017.


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This order does not apply to labor disputes for which procedures for adjustment
or settlement are otherwise provided until those procedures have been exhausted.
The procedures for adjusting and settling labor disputes which might interrupt
work which contributes to the effective prosecution of the war shall be as follows:
(a) The parties shall first resort to direct negotiations or to the procedures pro­
vided in a collective-bargaining agreement, (b) If not settled in this manner,
the Commissioners of Conciliation of the Department of Labor shall be notified if
they have not already intervened in the dispute, (c) If not promptly settled by
conciliation, the Secretary of Labor shall certify the dispute to the Board, pro­
vided, however, that the Board in its discretion after consultation with the Secre­
tary may take jurisdiction of the dispute on its own motion. After it takes
jurisdiction, the Board shall finally determine the dispute, and for this purpose
may use mediation, voluntary arbitration, or arbitration under rules established
by the Board.
The Board shall have power to promulgate rules and regulations appropriate
for the performance of its duties.
The members of the Board (including alternates) shall receive necessary travel­
ing expenses, and, unless their compensation is otherwise prescribed by the Presi­
dent, shall receive in addition to traveling expenses $25 per diem for subsistence
expense on such days as they are actually engaged in the performance of duties
pursuant to this order. The Board is authorized to appoint and fix the compen­
sation of its officers, examiners, mediators, umpires, and arbitrators; and the
Chairman is authorized to appoint and fix the compensation of other necessary
employees of the Board. The Board shall avail itself, insofar as practicable, of
the services and facilities of the Office for Emergency Management and of other
departments and agencies of the Government.

The order further provided that upon the appointment of the Na­
tional War Labor Board and the designation of its chairman, the
National Defense Mediation Board 2 (established by Executive order
of March 19, 1941) should cease to exist and its personnel should be
transferred to the new Board. At the same time all records, papers,
property, and all unexpended funds and appropriations for the use
and maintenance of the National Defense Mediation Board were
transferred to the National War Labor Board. The new Board also
assumed all duties with respect to cases certified to the previously
established body.
Nothing in the Executive order creating the National War Labor
Board is to be construed as superseding or in conflict with the provi­
sions of the Railway Labor Act, the National Labor Relations Act,
the Fair Labor Standards Act, the Public Contracts Act of 1936 as
amended to provide conditions for the purchase of supplies, or the
Davis-Bacon legislation requiring payment of prevailing rates of
wages on public work.
The President appointed the following as members of the new Board.
Representing the public: William PL Davis, chairman, formerly
head of the National Defense Mediation Board; George W. Taylor,
vice chairman, professor of economics, University of Pennsylvania;
2 See Monthly Labor Review, May 1941, for a description of the Mediation Board’s powers (p. 1137).


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Frank P. Graham, president of University of North Carolina and
formerly vice chairman of National Defense Mediation Board; and
Wayne L. Morse, dean of the Oregon University Law School.
E m p lo y e e m e m b e rs: Thomas Kennedy, secretary-treasurer of the
United Mine Workers of America; George Meany, secretary-treasurer,
American Federation of Labor; R. J. Thomas, president of the United
Automobile Workers of America; and Mathew Woll, vice president of
the American Federation of Labor. A lte r n a te s : Martin P. Durkin,
secretary-treasurer, United Association of Plumbers and Steamfitters
of the United States and Canada; C. S. Golden, regional director of
Steel Workers’ Organizing Committee; Emil Rieve, president of Tex­
tile Workers Union of America, and Robert J. Watt, international
representative, American Federation of Labor.
E m p lo y e r m e m b e rs: A. W. Hawkes, president, United States
Chamber of Commerce and president, Congoleum-Nairn, Inc.; Roger
D. Lapham, chairman of the board, American-Hawaiian Steamship
Co.; E. J. McMillan, president, Standard Knitting Mills, Inc., and
Walter C. Teagle, chairman of the board, Standard Oil Co. (N. J.).
A lte r n a te s : L. N. Bent, vice president, Hercules Powder Co.; R. R.
Deupree, president, Procter & Gamble Co.; George H. Mead, presi­
dent, the Mead Corporation; and H. B. Horton, Chicago Bridge &
Iron Corporation.
At its first meeting, the Board decided that its members would not
engage in conciliation activities but would devote their time to the
final determination of those disputes which are not settled by media­
tion or voluntary arbitration. A few days later the President ap­
pointed 24 associate members, 8 each from labor, industry, and the
public, to serve as mediators. In addition, the Board may appoint
special mediators or examiners, inside or outside the Government
service, for any particular case.
If the mediator is unable to settle a dispute and either or both
parties are unwilling to submit it to arbitration, the mediator will
submit findings of fact and recommendations to the Board. The
Boaid may render the final decision on the basis of these findings,
or it may decide to have the parties to the dispute appear before the
Board in formal hearings before rendering a final decision.
COMPULSORY ARBITRATION IN CUBAN LABOR
DISPUTES 1
COMPULSORY conciliation and arbitration procedure for the settle­
ment of laboi disputes in Cuba was established as an emergency war
measure in decree No. 3315 of December 10, 1941. This action is
designed to expedite the solution of the numerous labor disputes which
1 Report of George S. Messersmith, United States Ambassador at Habana.


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have recently arisen and to prevent the interruption of production
by strikes.
The decree provides that immediately upon the outbreak of a labor
dispute a conciliation commission shall be formed, composed of a
representative of the Ministry of Labor, a representative of the
employer group affected, and a representative of the labor union
involved. This commission shall endeavor to bring about a solution
which will be satisfactory to all parties concerned. In the event that
such a solution cannot be reached, the dispute must be submitted to
the arbitration of the Ministry of Labor, whose decision is final.
Should a stoppage of production occur during the conciliation pro­
cedure, through an illegal strike, the Ministry of Labor shall take
immediate action in accordance with the labor laws in force.


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Social Insurance

SAVINGS-BANK LIFE INSURANCE IN
MASSACHUSETTS AND NEW YORK
BECAUSE of the importance of low-cost life insurance from the
social viewpoint, Massachusetts has permitted savings banks in that
Commonwealth to write life insurance under conditions intended to
reduce the cost. The system of savings-bank life insurance was
initiated in 1907, and has grown rapidly, more than $200,000,000
of such insurance being in force in May 1941.
In 1938, New York became the second State to introduce savingsbank life insurance. Its system was modeled substantially upon the
Massachusetts plan. Savings-bank life insurance in force in New
York on July 1, 1941, totaled $15,334,500. In May 1941, Connecti­
cut passed a law similar to that of New York. Legislation has been
considered but not enacted by the legislatures of Maine, Maryland,
New Jersey, Pennsylvania, and Rhode Island.
The present article is a summary of a report on the “ Operation of
Savings-Bank Life Insurance in Massachusetts and New York,”
recently issued as Bulletin No. 688 of the Bureau of Labor Statistics.
The report brings up to date Bulletin No. 615 (which was issued in
1935), entitled “ The Massachusetts System of Savings-Bank Life
Insurance, and also describes the operation of the New York system
of savings-bank life insurance established in 1939.
Savings-Bank Life Insurance in Massachusetts
ORIGIN, PURPOSES, AND GROWTH OF SAVINGS-BANK LIFE INSURANCE

During the early years of the twentieth century, the waste of the
funds of life-insurance policyholders had become so great and so wide­
spread that several important committees were appointed to investi­
gate the situation. These included a committee appointed by the
directors of one of the largest life-insurance companies; the Arm­
strong Committee appointed by the Assembly of the State of New
York; and a “ Policyholders Protective Committee” appointed by a
group of New England policyholders. The latter committee en­
gaged as counsel Louis D. Brandeis who, after his investigations,
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presented a plan for the sale of life insurance over-the-counter by the
savings banks of Massachusetts.
The Brandeis proposals were presented to the Massachusetts
Legislature in 1906, and the supporters of the plan organized the
Massachusetts Savings Insurance League to urge support of the plan.
Partly because of an active publicity campaign conducted by the
League, the plan received legal approval in a law passed in 1907.
Among the purposes of the legislation were the following: (a) To
eliminate what were regarded as unnecessarily high costs, under the
system of sale of insurance by agents; (6) to make it possible for policy­
holders to obtain such privileges as cash surrender value, loans, ex­
tended insurance and paid-up insurance, at an early period and
under more advantageous conditions than were generally common
in the case of life insurance as sold by the private companies; (c) to
eliminate the possibility of overselling insurance and thereby to de­
crease the proportion of lapsed policies; (d) to provide life insurance
under such conditions that its sale would not increase the profits
of private individuals conducting the business.
The Whitman (Mass.) Savings Bank, in June 1908, established
the first insurance department under the law. Three more banks
joined the system between 1908 and 1912, 6 between 1922 and 1925,
11 between 1929 and 1931, and 8 in 1934 and thereafter, making a
total of 29 savings banks issuing life insurance.
During early years, the growth in insurance was slow. Recently
however, savings-bank life insurance has come to represent an im­
portant place in the life insurance in force in the Commonwealth.
In 1940, the savings banks ranked sixth as regards amount of life
insurance in force in the Commonwealth. The relative position of
the savings banks is improving, as witnessed by the fact that only
three insurance companies wrote more insurance in 1940 than did the
banks, and only one company gained as much in insurance in force
(after allowance for terminations).
A D M IN IS T R A T IO N O F T H E S Y S T E M

Savings-bank life insurance may be purchased by residents of
Massachusetts or by persons regularly employed in the Common­
wealth. After policies are purchased, the policyholders may move
to other States and continue to carry the insurance. The amount
which can be purchased by a policyholder from any one bank is
limited to $1,000 of insurance and an annuity of $200 a year. In
addition, the system has imposed a limit of $25,000 on the insurance
that may be purchased by a single policyholder from all banks. The
similar limitation on annuities is $50 a month for the income from
immediate annuities and $100 a month from deferred annuities.


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Monthly Labor Review—February 1942

Tlie banks sell the usual types of insurance and retirement con­
tracts. The life-insurance policies include whole life insurance,
limited-payment life insurance, endowment insurance, 5-year renew­
able term insurance, and decreasing term insurance to repay mort­
gages. In addition, the banks issue juvenile insurance and group
insurance for employee groups. The annuities include both imme­
diate annuities (the income from which commences immediately, and
for which the annuitant pays by a single lump sum) and deferred
annuities (which are usually paid for by annual premiums before re­
tirement, in return for which the annuitant receives an income after
retirement).
Responsibility for administration of the system is lodged with seven
unpaid trustees who supervise the activities of a specially created
State Division of Savings Bank Life Insurance, administered by a
salaried official of the Commonwealth. The central organization also
includes a State actuary ,to determine rates, and a State medical
director who is in charge of the medical selection of applicants for life
insurance. The expenses of this State Division are now assessed upon
the issuing banks, and the cost is thus borne by policyholders.
The law requires that the savings department and the insurance
department of any bank be operated separately. Neither department
is liable for the obligations of the other. The insurance issued by any
bank is guaranteed, first, by the assets of the insurance department
of that bank; and, second, by the General Insurance Guaranty Fund,
a central fund to which the banks which issue insurance contribute.
By law, mortality losses are shared among the banks, in order that
unusually large losses among the policyholders of a single bank will
not burden that bank too heavily. This “unification” is not extended
to matters other than mortality, because the other items such as
investments and expenses are within the control of a particular bank,
while mortality is not.
Though only 29 banks are authorized to issue insurance, the system
has a much larger number of agencies. These include, in addition to
the issuing banks, other savings banks, employers’ agencies, credit
unions, and public agencies such as settlement houses. In June 1939,
there was a total of 517 of these agencies. The bulk of the business,
however, is written through the 138 issuing and agency savings banks.
Savings-bank life insurance is subject to the supervision of both
the commissioner of banks and the commissioner of insurance.
F IN A N C IA L O P E R A T IO N S O F T H E S Y S T E M

The major source of the “dividends” paid to the policyholders of
the bank is the savings from mortality experience (this is true of most
insurance companies also). Dividends are also affected by other


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factors, such as the expenses of operation and the return that can be
obtained from investments. In the savings-bank life-insurance sys­
tem, mortality losses are unified among all banks, but investments
and expenses are the concern of each individual bank. For this
reason, in some years dividends paid by the different banks may vary.
During the earlier years of operation, the costs of the Division of
Savings Bank Life Insurance were met by State appropriations.
Commencing in 1927, increasing proportions of the expenses of the
Division were paid by the member banks. At the present time, the
banks advance all the funds needed to operate the Division.
Before November 1, 1939, savings-bank life-insurance funds were
taxed by the Commonwealth in exactly the same manner as deposits
in the savings departments of the banks. Since that time, the funds
of the insurance departments have been subject to the same State
taxes as the funds of life-insurance companies. Mutual savings banks
(including the insurance departments) are exempt from Federal
income taxes.
The funds of the insurance department of a bank must be invested
in the same manner as the funds of the savings departments.
S A V IN G S -B A N K

IN S U R A N C E A N D C O M PA N Y IN S U R A N C E : S E L L IN G

M ETHODS,

P O L IC Y T E R M S , A N D P O L IC Y M A IN T E N A N C E

The field work of private insurance companies may be organized in
two ways: (1) Under the general-agent plan, and (2) under the branchoffice plan. Under either plan, the sale of insurance is made by a
large number of agents who receive commissions. For ordinary
whole-life insurance, the commission may be 50 percent of the first
year’s premium, and 5 percent of the premium for each of the next
9 years. In addition, the general agent, under whom the agent works,
receives an “overriding” commission. The agent selling industrial
policies receives a commission for the sale of insurance and payments
for the collection of premiums on insurance already in force.
The savings banks do not employ solicitors and agents, although
two persons are regularly employed on salary to instruct industrial
workers (whenever requested by their employers) in the advantages
of savings-bank life insurance. In fact, the essential difference be­
tween savings-bank life insurance and that of the private companies
is not the difference between a State-sponsored system and a private
system, but rather the difference between insurance sold by a commis­
sioned-agency system and that sold by a non-agency system.
The provisions of savings-bank insurance policies are similar to the
provisions of the ordinary policies issued by the insurance companies.
The major difference lies in the fact that the large commissions paid
by the company from the first premium received for a policy do not
438471— 42------11


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Monthly Labor Review—February 1942

permit the companies (with a very few exceptions) to grant cash or
loan values before the second or third policy year. Savings-bank in­
surance provides for cash values at the end of 6 months and for loan
values after 1 year. Industrial policies of private companies are gen­
erally less favorable than ordinary policies.
The favorable provisions and low cost of savings-bank insurance,
together with the fact that it is sold by individuals receiving salaries
instead of commissions (and who are therefore less likely to oversell
the policyholder), have resulted in a lapse rate for savings-bank life
insurance which is much less than the lapse rate among other forms of
insurance. If the experience of all the insurance organizations operat­
ing in Massachusetts is considered, the ratios of insurance lapsed to
new insurance written in the year 1939 were 1.44 percent for the
savings-banks, 27.61 percent for all company ordinary insurance, and
16.62 percent for industrial insurance.
S A V IN G S -B A N K IN S U R A N C E A N D C O M P A N Y IN S U R A N C E : C O ST S T O
P O L IC Y H O L D E R

The cost to the policyholder of ordinary life insurance sold by the
savings banks is lower than that of ordinary insurance sold by the
private companies, and is also lower than that of industrial insurance.
The low cost of savings-bank life insurance is mainly the result of
low overhead and the absence of selling commissions; of favorable
mortality ratios ; and of interest returns on invested assets higher than
is usual among the insurance companies.
A comparison of expense ratios for the banks and the insurance
companies indicates the low operating expenses of the savings-bank
insurance system. The ratios of expenses of operation to premium
income for the insurance departments of the banks, for ordinary
insurance sold by the companies, and for industrial insurance, have been
as follows in recent years:
Savingsbank ordinary
insurance

1927-------------------------------------percent.
1932---------------------------------------- do___
1937 -------------------------------------- do__
1938 --------------------------- - — __do___

_
5. 18
7. 16
8.33

A ll
ordinary
insurance

4.5518.82
15. 44
14. 13
13.77

In d u s­
trial insurance

27. 64
22. 02
25. 32
25.45

The apparent increase in the banks’ ratio in recent years is partly
explained by the fact that on November 1, 1935, gross premiums were
substantially reduced, so that the same dollar expense would result
in a higher ratio to premiums received. Actually, the expenses per
$1,000 insurance in force were $2.58 in 1937; $2.59 in 1938; $2.66 in
1939; and $2.64 in 1940.


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Social Insurance

Probably the most important factor explaining the difference
between the banks and insurance companies in operating expenses is
that savings-bank insurance is sold without an agency system re­
quiring large expenditures for commissions and salaries. The average
ratio of salaries to premium income of the savings banks from 1929
to 1939 was 3.08 percent. For the insurance departments of four
mutual companies selling both ordinary and industrial insurance, it
was 12.02 percent during the same period; for their industrial depart­
ments, it was 20.76 percent.
The greater expenses of operation of the insurance companies may
be explained to a slight extent by the fact that the companies have
borne a somewhat heavier burden of taxation. The insurance com­
panies have paid roughly about 2 percent of their premium income
in taxes and fees, as compared with about two-thirds of 1 percent
(in recent years somewhat more) paid by the insurance departments
of the banks. The difference is, however, not enough to explain the
difference in cost to policyholders.
Another reason for the lower cost of savings-bank insurance is that
the insurance departments of the banks have in the past earned a
higher rate of return on their invested assets than have the insurance
companies, as indicated below:
Savings-bank
insurance
departm ents

N et interest earned during year—
1927___________________________________ percent__ 5. 25
1932_______________________________
do______
1937
__________________________________do____ 3. 93
1938
__________________________________do____ 3. 84

A l l insurance
organizations,
including
banks

5. 02
5.02
3. 68
3. 56

With certain exceptions, the investments of the banks and the
insurance companies are similar. The more favorable nature of the
return earned by the banks is probably caused by better experience
with mortgages. The mortgages placed by the banks have usually
been for small amounts and placed on local property with which the
banks are familiar. The insurance companies, on the other hand,
have placed large sums in mortgages on large buildings, and on
western and southern farm lands, which have had an unfortunate
earning experience in recent years.
A further reason for the low costs of savings-bank life insurance
is to be found in the comparatively low ratios of actual to expected
mortality experienced by the banks. These ratios are shown in the
following table:
Savings-bank
insurance

43.
1927_________________
percent.
1932__________________________ do-- 39.
1937 _________________________ do-- 35.
1938 _________________________ do--- 34.


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Federal Reserve Bank of St. Louis

74_
85
89
20

A l l ordinary
insurance

53.
63.
58.
56.

78
10
95
95

In d u stria l
insurance

63.
55.
47.
43.

88
72
52
76

4.65

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Monthly Labor Review—February 1942

Generalizations based on mortality rates must be used with great
care, and are especially unsafe when they result in comparisons
between different insurance organizations. However, it does not
appear that the differences in mortality are explained by the fact that
the savings banks are a more recent organization than the insurance
companies.
Among the factors that explain the differences in mortality are
the lack of pressure by agents upon medical examiners for savingsbank insurance; the absence of single policies for large amounts;
favorable health conditions in the New England area; and the fact
that policyholders are not “oversold.”
F A C T O R S A F F E C T IN G G R O W T H O F S A V IN G S -B A N K L I F E IN S U R A N C E

The growth of savings-bank life insurance has been encouraged by
the favorable nature of the policies and by their low cost. A con­
tributing factor may have been the widespread criticism of industrial
insurance in recent years.
An important reason for the growth has been the character of its
leadership. Among the advocates of savings-bank insurance have
been leading business men, labor leaders, and educators of Massa­
chusetts. In addition, savings-bank life insurance has had the sup­
port of the Massachusetts Savings Bank Insurance League and of
many prominent organizations throughout the State.
Savings-bank life insurance has at all times received the active
support of many employers. The Associated Industries of Massa­
chusetts, the most important organization of manufacturers in the
Commonwealth, employs a secretary who devotes his time exclusively
to the promotion of savings-bank life insurance.
Many savings banks in Massachusetts have not entered the savingsbank system to the extent of forming insurance departments. This is
due in part to the conservatism of trustees and officers, and in part,
perhaps, to the influence of insurance-company officers and agents.
However, many banks which have not formed insurance departments
have acted as agents for savings-bank life insurance. It is probable
that the insurance business done by a bank stimulates, at least to some
extent, the business of the savings department of the bank.
The issuing banks have formed a permanent association called the
Savings Bank Life Insurance Council. Advertising for the system
and other coordinating activities are now handled through this
organization.


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C R IT IC IS M O F S A V IN G S -B A N K L I F E IN S U R A N C E

Opponents of savings-bank life insurance have admitted that the
insurance is sound from an actuarial viewpoint, but have criticized
the following features:
(1) It has been objected that the original purpose of savings-bank
insurance was to offer a substitute to the workman for the high-piiced
industrial insurance which he had been buying. Instead of this, it
has been claimed that the system now sells insurance largely to mem­
bers of the middle class who can afford substantial amounts. In
reply, it can be stated that even when the original act was passed, its
provisions admitted a large eventual total of life insurance to be issued
to a single policyholder. However, a recent investigation indicates
that persons with low incomes and purchasers of relatively small
amounts of insurance generally constitute the system’s policyholders.
Seventy-six percent of the policyholders covered by the investigation
were insured for $1,000 or less; 90 percent for $3,000 or less; and only
1.2 percent for more than $10,000.
(2) It is claimed that the banks do not give their policyholders as
much service as do the companies; that the latter give superior service
with respect to some policy provisions, persuading people to buy
life-insurance protection, advice to policyholders, and collection of
premiums. In regard to the sale of life insurance and the collection of
premiums, the success of savings-bank life insurance itself indicates
that an extensive agency staff is not necessary to do this for many
policyholders. Moreover, there may be at times conflict between the
personal interests of the agent and the best interests of the insured
person.
(3) It has been argued that savings-bank insurance owes its growth
and the low cost of its insurance to subsidies received from various
sources. Subsidies from the State, however (through payment of the
expenses of the Division of Savings Bank Life Insurance during its
earlier years), and from private agencies have not been appreciable
when compared with the volume of premiums.
More important is the suggestion that the insurance departments
have been subsidized by the fact that they have paid less than their
share of the operating expenses of the bank. This subject has been
carefully investigated, and it appears that: (1) The growing insurance
departments are paying their direct expenses and absorbing an
increasing proportion of the joint expenses and overhead of the savingsinsurance banks. (2) Taking the savings-insurance system as a
whole, the officers and trustees of the savings-insurance banks appear
to be allocating an equitable share of the joint expenses of the banks
to the insurance departments. (3) The cost of savings-bank life
insurance to policyholders is lower for reasons other than that the
depositors of savings banks are paying part of such costs.

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Monthly Labor Review—February 1942
S U M M A R Y A N D C O N C L U S IO N S

The Massachusetts sytem of savings-bank life insurance was de­
signed to provide dependable life insurance and annuities at low cost.
The insurance is held to a great extent by workers and others receiving
low incomes. The cost of the life insurance which they receive from
the banks is less than that of either ordinary or industrial insurance
sold by life-insurance companies, principally because savings-bank life
insurance is sold without the use of agents employed on a commission
basis. Cash and loan values, too, are more liberal, and the elimina­
tion of overselling has resulted in a very low lapse ratio.
Savings-Bank Life Insurance in New York
The law enacted in New York in 1938 and amended in 1940 for
saving-bank life insurance is similar to the Massachusetts law. There
are certain differences in administrative features and in the guaranty
funds. Adore important, perhaps, is the difference in total life insur­
ance which a policyholder can purchase from the system: In New
York the amount is legally limited to $3,000, as compared to $25,000
in Massachusetts (the Alassacliusetts limitation is imposed not by law,
but by the system itself).
On July 1, 1941, insurance departments had been established by
14 banks in New York and 12 more were acting as agency banks.
The same causes which have restrained some Massachusetts banks
from entering the system have also operated in New York. However,
it may be said that the savings banks in New York have shown far
more interest than did those in Massachusetts during the early years
of savings-bank insurance in that State.
It is still too early to make any judgments concerning the cost of
insurance issued by the New York savings banks. However, it seems
probable that over a period of years differences in cost between the
two systems will be negligible.
Certain conclusions may be reached from the operation of savingsbank life insurance in New York, limited as it has been:
1. There is a demand for savings-bank life insurance in New York,
as evidenced by applications in 2){ years for more than $15,000,000
of insurance.
2. Buyers of savings-bank life insurance have been largely people
of limited income. Alore than 40 percent of the applicants have had
no insurance at the time they applied, and 25 percent held only small
industrial policies. Over one-half of the applicants have incomes of
$30 a week or less.
3. I t is evident that the banks which provide savings-bank life
insurance are enthusiastic about its benefits to the community and


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to the banks. They have found that is is a valuable source of good­
will and that it attracts substantial numbers of new customers to the
bank.
4.
Present indications point to a substantial expansion in the num­
ber of New York savings banks providing this service, with aggressive
promotional activities in publicizing this new thrift service.
w w #.

UNEMPLOYMENT-COMPENSATION OPERATIONS,1
NOVEMBER 1941
CONTINUED-CLAIM receipts and the number of benefit recipients
in November increased for the first time since the middle of 1941,
reflecting lay-offs caused by shortages of materials as well as seasonal
declines in activity. At the same time, the volume of unemploymentcompensation payments, amounting to $21,100,000, extended its
decline to a new low. The average weekly amount of benefit dis­
bursements during weeks ended in November was, however, 11 percent
higher than in October. It appears, therefore, that the decline in
total benefit payments from October was due to the fewer working
days in November, and that the rate of disbursements actually
increased.
The 2,600,000 claims filed and the weekly average of 470,400
workers receiving checks that month were, however, more than onefourth below the November 1940 level. For the first 11 months of
1941, benefit payments aggregated $317,900,000, 35 percent less than
in the corresponding period of 1940.
Benefit Payments
Despite the drop in total benefit payments in November, 30 juris­
dictions had increases ranging from less than 1 percent in California
and Illinois to 50 percent in Oregon and Wyoming. Nine of the 30
were major war-industry States—California, Connecticut, Illinois,
Indiana, Missouri, New Jersey, New York, Ohio, and Washington.
However, except for rises of 29 percent in Washington, 16 percent in
Ohio, and 13 percent in Indiana, increases in war-industry States were
small.
Normal seasonal unemployment in construction, and [lay-offs in
plants manufacturing automobiles, aluminum ware, and other civilian
products affected by priorities were responsible for the increase in
benefit payments in Wisconsin, while seasonal declines in construction
and logging activity were probably the major factors contributing to
the rise in Washington. The greater benefit disbursements in Oregon
i P re p a re d b y R e p o rts a n d A nalysis D iv isio n , B u re a u of E m p lo y m e n t’S ecu rity , Social Security* B o a rd .


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442

Monthly Labor Revieiv—February 1942

were mainly attributable to seasonal reductions in logging and con­
struction and to dislocations in manufacturing and trade caused by
curtailment of nondefense production, and in Wyoming to cessation
of the building program at Fort Warren and seasonal lay-offs in
highway construction.
Other significant increases in benefit payments over October were
those of 45 percent in New Hampshire, 40 percent in Maine, 35 per­
cent in North Dakota, and 32 percent in Idaho. Slackening opera­
tions in the women’s shoe industry largely account for the increases
in Maine and New Hampshire. Seasonal reductions in the novelty
industry in New Hampshire also were a contributing factor.
Benefit disbursements were higher than in November 1940 in 10
States—Florida, Indiana, Kansas, Louisiana, Michigan, Mississippi,
New Jersey, North Carolina, Utah, and Wisconsin. The increase in
New Jersey was more than 50 percent, while in four of the other States
disbursements were between 20 and 25 percent higher than in Novem­
ber of the previous year.
TFeeks Compensated
Although the number of compensated weeks of total unemploy­
ment dropped 3 percent from the previous month, to 1,700,000, the
number of compensated weeks of partial unemployment rose to
150,000. For the 44 jurisdictions reporting comparable data, this
represented an increase of 8 percent over the previous month, indi­
cating that a shortened work week, rather than lay-off, was being
resorted to in some industries under the stress of conversion from
nondefense to war production.
The number of compensated weeks of partial and part-total un­
employment combined rose 59 percent in Connecticut, mainly as a
result of defense dislocations, and in Maine and New Hampshire,
70 and 95 percent, respectively, largely as a result of slackening
seasonal operations in the ladies’ shoe industry. In nine jurisdictions
the number of compensated weeks of partial and part-total un­
employment represented 20 percent or more of all weeks compensated;
in three of these (Maine, New Hampshire, and West Virginia) the
proportions approximated one-third of all weeks compensated.
Average Number of Claimants
The steady decline in the average number of benefit recipients was
reversed in the month under review. Claimants receiving benefits
were 9 percent more numerous than in October. This figure, how­
ever, was the smallest for any month since 1939, except October 1941.
All but nine jurisdictions participated in the Nation-wide increase.
Benefit recipients were at least half again as numerous as in October
in Maine, New Hampshire, Oregon, Wisconsin, and Wyoming.

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Federal Reserve Bank of St. Louis

443

Social Insurance

Continued Unemployment-Compensation Claims Received, Weeks Compensated, and
Benefits Paid, by States, November 1941
[D a ta re p o rte d b y S ta te agencies, corrected to D ec. 23, 1941]

Weeks compensated

Continued claims 1
Type
Social Security Board
region and State

Total ---------------- ------

Total

Partial
and parttotal
com­
bined 2

1,937,768

1,723,733

214, 035

149, 504

23,765
17,819
112,159
13,266
21,939
1,959

20,910
17,084
114,138
12,733
21,939
1,842

16,346
99, 264
8,719
19,951
1,719

4, 564
5,862
14,874
4,014
1,988
123

4,485
5,339
14,243
3,963
(6)
89

106,851

331,938

324, 635

324,635

388
25,628
59,382

3,734
135,901
100,784

3,694
121,007
91,161

2,896
96,530
91,161

798
24. 477
(2)

709
24,161
(2)

12,809
28,919
51,941
23,508
17,915

2,078
1,777
7,898
3,775
2,114

10,731
27,142
44,043
19,733
15,801

10,129
26,106
43,167
18,815
16,784

9,709
20,731
40, 281
17,823
11,024

420
5,375
2,886

992
5, 760

81
5,302
2,442
589
5,651

15,313
100,283
114,607

2,847
18,536
27,177

12,466
81,747
87,430

24,932
85,892
70, 080

21,060
82,583
63,087

3,872
3,309
6,993

2,209
4,731

163,445
59,641
34,849

15,355
9,528
10,327

148,090
50,113
24, 522

143,627
50,051
22,671

108,543
43,900
19,310

35, 084
6,151
3,361

24,264
3, 550
2,083

38,802
45,774
47, 220
20,193
28,790
61,937

10,829
5,549
16,668
4,528
4,911
5,519

27,973
40, 225
30, 552
15,665
23,879
56,418

26,818
41,665
31,457
14,510
19,440
42,802

25,278
36,746
30,177
13,923
18,148
40,172

1,540
4,919
1,280
587
1,292
2,630

262
857

1,666

14,663
35,022
8,964
2,292
2,278

4,822
6,434
2,363
534
673

9,.841
28,588
6,601
1,758
1,605

9,084
26,942
6,171
1. 538
1,537

8,047
23,555
5, 578
1,318
1,463

1,037
3, 387
593

254
2,153
309

14,367
20,434
73,281
22,024

2,821
4, 200
20,080
3,393

11,546
16, 234
53, 201
18,631

11,546
16,042
48,486
16,704

10,997
14,319
39,131
14,926

549
1,723
9,355
1,778

253
646
8,722
140

75,851
4,940
70, 569

17,018
549
11,241

58,833
4,391
59,328

52,383
3,793
34,950

48,740
3,535
30,959

3,643
258
3,991

1,595
80
293

7,024
11,310
5,448
10,876
12, 017
2,562

905
2,403
1,594
3,030
1,038
880

6,119
8,907
3,854
7,846
10,979
1,682

6,103
8,175
3,199
6,710
10,941
1,648

5,805
7,490
3,001
6,710
10,132
1,458

298
685
198
(2)
809
190

4
293

280,201
3,750
14,931
31,072

45,407
535
3,882
11,332

234,794
3,215
11,049
19,740

219, 551
2,453
9,817
19,617

183,170
2,270
7,976
16,304

36,381
183
1,841
3,313

21, 007
63
998
1,800

1,436
1,644

478
126

958
1,518

851
1,438

821
1,090

30
348

333

Number

Waiting
period

Compen­
sable

2,596, 556

535,544

2,061,012

28,427
21,181
142,259
19,552
25,059
2, 570

4,662
3,362
30,100
6,286
3,120
611

438,789
4,122
161, 529
160,166

Region I:
~Connecticut_________
Maine - ________
Massachusetts____ __
Nftw H am pshire____
Rhode I s la n d ____ V erm o n t___ - -- Region IT:
New Y o r k __ __ Region III:
Delaware____ - __
New Jersey ___ ___ _
P ennsylvania___- - Region IV :
District of Columbia.
Maryland
______
North C aro lin a__
Virginia __________
West Virginia_______
Region V:
Kentucky .. ______
Michigan
. Ohio . . ____ _ -Region VI:
Illin o is______ __
Indiana ______ __
W isconsin______ Region VII:
A labam a___ _ _
Florida ___ _______
Georgia
-Mississippi - __ __
South Carolina__ - Tennessee - - - - - - Region VIII:
Iowa______- ____- M innesota...........- Nebraska - _______
North D a k o ta ____ South Dakota___ - Region IX:
Arkansas ________ Kansas _ _______
Missouri _____ ______
O klahom a___
Region X:
L ouisiana________ -New Mexico____ . _>
Texas ____________
Region XI:
Arizona____ _____ Colorado_____ ___
Idaho ____ _____
Montana
_ . _.
Utah
___ . Wyoming
Region XII:
C alifornia___ - ...........
N e v a d a _______ - Oregon ___
Washington
. .
Territories:
Alaska _ _ __
__
Hawaii____________
See fo otnotes a t en d of ta b le.


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Federal Reserve Bank of St. Louis

Type of unemployment

'
Number

11,222

(2)

Partial
only 2

(2)

2,200

666

215
537

101

220

74

(6)

(2)

11

172
43

0

444

Monthly Labor Review—February 1942

Continued Unemployment-Compensation Claims Received, Weeks Compensated, and
Benefits Paid, by States, November 1941— Continued
[Data reported by State agencies, corrected to Dec. 23, 1941]
Benefits paid 4
Type of unemployment

Social Security Board
region and State
A m ount 3

Total
TotaL

$21,066,351 $19, 503,194

R egion I:
C o n n e c tic u t_______ . . .
M a in e ________________
M a s sa c h u s e tts ________
N e w H a m p s h ire ______
R h o d e Is la n d ______. . .
V e r m o n t ..____________
R egion I I :
N ew Y o r k .___________
R egion I I I :
D e la w a re _____________
N ew J e rs e y ___________
P e n n s y lv a n ia _________
R egion IV :
D is tric t of C o lu m b ia ...
M a ry la n d ____________
N o rth C a ro lin a _______
V irg in ia ______________
W e st V irg in ia _________
R eg io n V :
K e n tu c k y ____________
M ic h ig a n _____________
O hio__________________
R egion V I:
Illin o is . 1______________
In d ia n a _______________
W is c o n s in .......................
R eg io n V II:
A la b a m a _______ ______
F lo rid a _____ _________
G eorgia_______________
M ississip p i___________
S o u th C a ro lin a _______
T en n essee_____________
R egion V III:
I o w a ....................... ............
M in n e s o ta _________ . . . .
N e b ra s k a _____________
N o rth D a k o ta _________
S o u th D a k o ta ..................
R egion IX :
A rk a n s a s ______________
K a n s a s - - ._____________
M is so u ri______________
O k la h o m a ______ ______
R egion X :
L o u isia n a _____________
N ew M exico___________
T e x as__________________
R egion X I:
A rizo n a_______________
C o lorado ______________
I d a h o __________________
M o n ta n a ______________
U ta h __________________
W y o m in g _____________
R egion X I I :
C alifo rn ia_____________
N e v a d a ________________
O regon________________
W a s h i n g to n - ..________
T e rrito rie s:
A la s k a ________________
H a w a ii_______________

Partial and
part-total
combined 2

Partial
only 2

$1, 550, 560

$1,029,025

Month and
Amount of
year bene­ benefits
since
fits first
first
payable 8
payable

$1,660,927,670

214,033
123, 215
1,121, 624
96,664
234,608
15,223

183,648
85,433
1,039,605
73, 662
224,030
14,637

30,348
37, 782
81,195
23,002
10, 578
573

29, 735 Jan. 1938
34,546 -.d o..........
77,010 ..d o _____
22,680 ...d o _____
.do ..........
(6)
398 ...d o ..........

24,875, 566
12,429,605
94,190,006
7,550, 830
26, 236,233
2, 743, 719

3,849, 562

3,849, 562

(?)

(2)

...d o _____

329,043, 732

33,100
1,367,763
963,810

28, 252
1,191, 342
963,810

4,838
176,036

Jan. 1939
—do_____
Jan. 1938

2,035, 530
44, 274,029
192,294,874

120, 976
289, 742
291,221
156,998
162, 413

115,982
249, 751
279,969
150,871
114, 759

4, 680
39, 473
10, 954
6,066
47,654

844 ...d o ........
38,890
.d o .........
8,645
.do_____
3, 567 —.do_____
46,946 ...d o _____

. 7,184,355
27,070,192
20,337, 227
18, 751,164
23,033,447

178,328
1, 063,640
714,564

160, 253
1,038,363
672, 963

17, 440
25,277
39,384

10,380
14, 731
25,030

Jan. 1939
July 1938
Jan. 1939

12,077,364
117, 998,084
59, 272,130

1, 688,464
583, 542
238, 985

1, 422, 589
542, 271
212, 204

262, 695
41,171
26, 781

169, 381
20,554
15, 450

July 1939
Apr. 1938
July 1936

86,000, 648

201,147
403, 384
252,150
122, 655
145,150
368,612

191, 742
370, 235
243, 490
118,827
138, 649
352, 626

9, 302
33,149
8,660
3, 815
6,419
15, 986

1, 396
5,346
5,355
1,327
2,439
9,263

Jan. 1938
Jan. 1939
-_do_____
Apr. 1938
July 1938
Jan. 1938

20.023.981
15, 007,109
10,393,446
6,595, 438
6, 721, 554
21,171,481

77, 931
299, 958
56,194
14, 216
12, 686

72, 586
272, 272
51, 847
12, 597
12, 244

5,320
27,686
4, 347
1, 619
442

1,146
17,608
2,163
704
m

July 1938
Jan. 1938
Jan. 1939
—do____
—do_____

14, 209,960
32,020,105
4, 351,340
1, 651,744
1,081,619

80, 972
159, 632
459,306
183, 733

77, 917
147,324
410, 309
170,178

3, 055
12, 308
48, 831
13, 555

1,318 ...d o __
4,194 ...d o ..........
43,334 ...d o ..........
823 Dec. 1938

6,900, 734
5,988, 338
17,481,324
10.414.981

524,124
35,400
276,902

495,030
33, 424
255,304

28, 530
1, 976
21, 570

11,809
590
1, 052

Jan. 1938
Dec. 1938
Jan. 1938

23, 214,220
3,178,309
35,215,881

70,152
80,587
36,068
71, 950
138, 593
21, 623

67,473
75, 252
34, 293
71, 950
130, 819
19, 898

2,679
5,317
1,755
(2)
7,774
1, 725

37 .—do_____
2,161 Jan. 1939
121 Sept. 1938
July 1939
(2)
1,163 Jan. 1938
247 Jan. 1939

5,521, 794
9, 748,667
5,973, 447
6,335,085
7,118, 796
2,988,075

3,042, 826
31,888
121,666

244, 603

2,691,435
30,146
106, 095
213,018

348,553
1,742
15, 423
31, 585

12, 347
11, 421

12,024
10, 234

323
1,187

4,285
173,134
(2)

191, 751
565
7,782
18, 076
0

1,049 j-

Jan.
Jan.
Jan.
Jan.

41,061,918
22,143,839

1938
1939
1938
1939

175,442,971
2, 712,434
16,366, 805
20, 625, 097

..d o ...... .

1,155,143
713,300

2i ln.

"ne claimant nas completed a waiting-period week or a compensable period,
nenents lor partial and part-total unemployment are not provided by State law in Montana, New

Y ork, and Pennsylvania.
\
supplemental payments, not classified by type of unemployment.

, ,

adJusted for returned and voided benefit checks.

8 Adjusted to exclude returned and voided benefit checks.

Data for partial unemployment included with data for part-total unemployment.


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Federal Reserve Bank of St. Louis

Social Insurance

445

Claims Received
With a substantial increase in continued-claims receipts for all
types of unemployment during the last week of November, the
weekly average for the month rose 13 percent to 630,600. The 73,000
more claims received in the last week than in the preceding week were
due largely to the carry-over of operations interrupted by the Novem­
ber 20 Thanksgiving holiday in 34 jurisdictions.
While continued claims were 2 percent higher than in October,
they were fewer than in any other month since 1939. Waitingperiod claims increased 3.3 percent over October, but claims for
compensable weeks of unemployment rose only half as much. Among
the 15 States having the largest war-industry contracts, 10 reported
increases in claims receipts ranging from 3 percent in Indiana to 40
percent in Washington and averaging 6.7 percent. In addition to
the other five war-industry States, 14 other jurisdictions reported
declines in claims receipts.
SICKNESS INSURANCE FOR INSURANCE
PENSIONERS IN GERMANY
A UNIFIED sickness insurance program for persons receiving socialinsurance pensions of various kinds in Germany was established by
a decree of November 8, 1941.1 The law was retroactive to August
1, 1941, and covers persons receiving social insurance pensions either
for age, disability, widowhood, orphanage, or retirement.
Sickness insurance is automatically applied from the date on
which the first pension payment is made and ends with the last pay­
ment, although it may be continued on a voluntary basis if the insured
person gives notification within 6 weeks of his intention to continue
the payment of the insurance premiums. Premiums amount to an
average of 3.30 reichsmarks per month. By the payment of slightly
increased premiums, supplementary sickness insurance, burial insur­
ance, and family insurance may also be taken out. Sickness-insurance
contracts with other companies may be transferred through arrange­
ment with the competent local authorities.
i Report from Sam E. Woods, Commercial Attaché, United States Embassy a t Berlin.


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Federal Reserve Bank of St. Louis

Employment Services

PLACEMENT WORK OF PUBLIC EMPLOYMENT
SERVICES, NOVEMBER 19411
PLACEMENTS made by public employment offices registered a
sharper-than-usual October-November decrease, the 406,800 jobs
filled in November being 25 percent fewer than in October and repre­
senting the lowest volume of placements in any month since March.
However, November placements were 12 percent more numerous
than in the same month of 1940. Job applications also declined to
1,300,000, or 11 percent below the October figure, but the active file
remained at practically the same level, 4,200,000.
Seasonal reductions in certain industries and the effect of material
shortages and priorities explain some of the drop in placements, but
the smaller number of working days in the month accounts for the
major part of the decline. October had 25 working days, whereas
November, with five Saturdays and Sundays and three midweek
holidays in most States, had only 19%. Adjusted for this loss in work­
ing time, the decline in placements would amount to only 3.2 percent.
Placements
Every State shared in the Nation-wide decline in placements, with
35 States reporting decreases of 20 percent or more. The drop in
placements was sharpest among the agricultural States, a pattern
which is normal after large-scale hires for harvest work. Substantial
declines, ranging from 40 to 56 percent, occurred in North Dakota,
Wyoming, Tennessee, Montana, Idaho, Mississippi, Georgia, New
Mexico, and Virginia. In addition to the loss of working time, seasonal
slackening in agricultural, canning, lumbering, and construction
operations, curtailments in a number of nonwar industries, and a
leveling off of defense activity in many areas contributed to the
declines.
As a group, the 15 States to which the largest volumes of defense
contracts have been awarded showed a decline of only 22 percent as
compared with a decline of 29 percent for all other States. Adjusted
1

P re p a re d b y R e p o rts a n d A n a ly s is D iv isio n , B u re a u of E m p lo y m e n t S e c u rity , Social S e c u rity B o ard .

446


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Federal Reserve Bank of St. Louis

447

Employment Services

for loss of working days, the war-industry States would actually have
shown no decrease in the rate of placements.
The public employment offices in November filled 253,400 jobs with
men and 153,400 with women. Jobs filled by men were 9 percent more
numerous than in November 1940 and jobs filled by women 17 per­
cent higher. The increases for both men and women over the same
month of 1940 were the smallest this year. However, the relative
increase for women was larger than for men for the first time since
October 1940. Only Arkansas, Hawaii, Texas, and Vermont showed
declines in placements for both groups from November 1940. Reduc­
tions for men alone were also noted in 14 other States and for women
alone in seven others. In Delaware, the District of Columbia, Ken­
tucky, Louisiana, New Jersey, New York, Rhode Island, and West
Virginia, more women than men were placed in November 1941.
Active File
At the end of November, the active file held 4,200,000 registrants, 7
percent below the same month of 1940. Excluding Indiana and Texas,
which observe no validity period, the file was larger than 1940 in 13
States. The greatest proportionate increase over November 1940 in
the number of individuals actively seeking work through the employ­
ment offices was the 134-percent rise in Arkansas. The largest per­
centage increases were reported by States in the Southeast and Gulf
and in the Southwest areas.
T a b l e 1.— Summary of Placement Activities of Public Employment Services,

November 1941
[D a ta re p o rte d b y S ta te agencies, corrected to D ec. 23, 1941]

Percent of change from—
Activity

Number

Total complete placements . r ____________
_____ _______________
ftegnla.r
Temporary
_ ------------- ------- ---------------Sn pp] pm pn tar y placements_______________________
Total applications
_ _____________ Active file
______ _________________

406,789
248,695
158,094
176,058
1,327,116
4.234,521

October
1941
-24.5
-26.7
-20.9
-55.5
- 10.8
+ .1

November November
1939
1940
+11.5
+13.8
+ 8.0
+30.1
- .5
1-7.4

+40.6
+58.6
+19.2
+195.4
- 6.2
1-24.9

i B ased on c o m p arab le d a ta ; excludes Id a h o .

At the end of November 1941, excluding New York, for which data
were not reported, the active file of men numbered 2,700,000 and of


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Federal Reserve Bank of St. Louis

448

Monthly Labor Review—February 1942

women 1,200,000. Based on comparable data, the number of male
job seekers actively looking for work was 10 percent lower, but the
number of woman job seekers was 4 percent higher than on November
30, 1940. Male registrants were less numerous than on November 30,
1940, in 37 States, and woman registrants were fewer in 25 States.
T able 2. — Summary of Placement Activities for Veterans, November 1941
[Data reported by State agencies, corrected to Dec. 23,1941]
Percent of change from—
Activity

Total complete placements ___
_____
Regular. ___ _ __________
T em porary______________
Total applications_____________
Active tile.. ________________ .

Number

12,779
6,872
5,907
44,005
2 164,006

1 Total veteran placements by duration not reported prior to 1941.
? Excludes New York; data incomplete.
3 Based on comparable data; excludes New York.
4 Based on comparable data; excludes Idaho and New York.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

October
1941
-28.6
-30.9
-25.7
- 9 .2
H -.2

November November
1940
1939
+4.6
(>)
«
-14.9
4—11. 5

+25.9
9)

(>)
- 20.8
4—26.4

449

Employment Services
T able 3. — Activities of Public Employment Services, A ll Registrants, by State,

November 1941
[D a ta re p o rte d b y S ta te agencies, corrected to D ec. 23, 1941]

Total applica­
tions received

Complete placements
January-N ovember 1941

November 1941
Social Security
Board region
and State

Active file as of
Nov. 30, 1941

SupPer­
plePer­
mencent
cent
Pertary
of
of
cent place­
change
of ments Number change Number from
Regu­
from
change
lar
Nov.
Oct.
(over 1 Number from
30,
1941
Jan.1940
Nov. month)
Nov.
1940
1940

Percent of
change
from—
Num­
ber
Oct.
1941

Total____ --- 406, 789 -24.5 +11.5 248, 695 4, 998,021 +46.8 176,058 1,327,116 - 10.8 4,234, 521 i -7 .4
Region I:
Conn____ - 7,262
Maine- __ 3,391
7, 547
Mass____ N. I I ______ 1,741
R. I _______ 1,520
Vermont___ 1,004
Region II:
New York-.- 43,109
Region III:
1,489
Delaware__
N. J _______ 16, 716
P a________ 17, 542
Region IV :
D. C ______ 5,181
M aryland--- 4,858
N. C ______ 8, 981
Virginia___
6,275
W. Va_____ 3,169
Region V :
Kentucky. . 3, 215
Michigan— 12,852
Ohio______ 22, 475
Region VI:
Illinois____ 18,125
Indiana____ 10,899
Wisconsin.-. 8,079
Region VII:
Alabama___ 4, 750
Florida____ 6,937
Georgia____ 7,379
3,800
Miss______
S. C_______ 5,157
Tennessee... 6,508
Region VIII:
8,518
Iowa______
M inn_____
6,925
Nebraska__ 3,205
N. Dak____ 2,859
S. D ak____
1,527
Region IX:
6,153
Arkansas. 7,382
Kansas____
Missouri___ 13, 051
Oklahoma... 5,150
Region X:
Louisiana... 5, 846
N. Mex___ 3, 493
Texas_____ 30, 726
Region XI:
Arizona____ 2,074
Colorado___ 3,369
2,370
Idaho_____
1,435
M ontana__
2,786
U tah .. ___
W yom ing...
831
Region XII:
California. __ 38,410
Nevada____ 1,618
Oregon____ 11, 738
Wash______ 5,765
Territories:
786
Alaska_____
811
Hawaii____

- 20.2 +9.3
—33.4 +104.2
-19.1 +37.3
-2 4 .7 - 4 .0
-24.9 +6.3
-25.4 -30.5

4,877
2,631
5,968
1,359
1,229
559

94,078 +53.9
42, 841 +103. 3
96, 294 +109. 2
24,014 +10.4
22,323 +135.1
12,863 +17.2

. 57

20,620 -2 .7
9,827 -13.1
46,836 -17.6
5,569 -16.9
8,308 - 8.6
2,611 -3 .0

-22.4 +36.6

23, 814

510,648 + 68.6

473

147, 982 - 12.6

393, 589 -20.9

- . 6 + 22.8
-5 .4 +33.4
-27.3 +35.9

705
8,746
12,881

16, 554 +25.9
174, 277 +62.1
216,679 +54.6

12
8

1, 638

2,635 + 2.1
43,193 -23.1
78, 512 -24.2

6, 639 -26.1
150, 994 - 8.8
250, 530 -18.7

-12.9 +9.9
- 20.6 +4.0
-33.2 -30.1
-40.2 - 6.2
-37.0 -13.3

2, 331
3,329
6 ,434
4,015
1, 928

+34.2
+52.6
+103. 5
+81.3
+39.0

16
566
51
126

10, 691
19,393
28, 840
17,852
14, 111

-15.4
-16.1
-12.3
-26.3
-5 .3

20,190 -25.1
31, 996 -34.4
91, 472 + 1.8
48,041
+. 4
46, 509 -19.7

- .4
-23.2
-20.4 +4.1
-21.5 +25.7

2,055
8,337
12,426

42,942 +44.1
154,377 +26.4
267,824 +60.3

75
288
247

16,813 -14.3
45,837 -20.4
61, 882 -7 .8

70, 519 -18.8
122,132 -18.4
188, 417 -41.8

-19.5 +13.5
-19.0 +18.8
- 21.2 +13.6

10, 827
7,236
4,374

231, 517 +54.9
138,826 +58.0
106,605 +42.8

2,683
558
405

106,781 +41.2
31,294 -14.8
25,049 -1 .9

201,911 +21.9
230,960 +63.0
70,981 -28.5

- 22.1
-4 .9
-44.0
-47.1
-27.7
-41.3

+34.1
-59.4
+12.5
+4.9
+88.9
+2.4

3,568
5,534
5, 215
3,193
4,028
4, 611

-19.8
-33.3
-32.5
-56.0
-29.3

+31.0
+16.2
+36.9
+15.8
+2.5

4,952
3,475
1,658
1,054
701

90,853
87, 202
39, 246
47,455
19, 976

1.672
267
125
948
1,204

16, 704 -12.3
28, 890 - 2.1
8,523
+•
5,144 -36.6
4,564 -15.1

53,050 -28.9
77, 702 -28.2
39, 929 +3.8
22, 002 -5 .5
17,183 -19.8

-32.2
-24.4
-37.9
-7 .4

-39.4
+86.5
+69.1
+51.7

4,781
3,86S
9,275
2,192

75,317 + 20.1 29,341
781
80,946 +78.3
986
164, 277 + 88.6
50,361 - 6.0 8,012

22,680 + 2.6
16,989 -15.2
42,492 -19.3
20, 282 -5 .5

89,926 +134.2
59, 482 + 11.1
184,337 +16.2
89, 552 +95.6

- 22.6 —57. £
-40.1 +41.2
-18.6 -22.3

4,301
1,468
15, 287

68,632 +30.8 1,311
25,918 +39. C 3, 964
367,336 + 12.6 55,982

20, 578 -13.4
5,422 +34.5
- .2
65, 562

123,035 +9.4
21, 793 -11.5
280,691 +27.4

4,439 -11.9
+7.5
4,321 +13.6
5,210 + 1 . 1
7,916 -26.5
2,445 +13.7

16, 767 -5 .9
46,178 - 8.6
19,560 ( 2)
10, 439 -40.6
16, 272 -32.2
5,400 -17.8

0

0

417
60,681 +28.8
362
66,903 +26.6
72
108,488 +21.4
78
63, 245 +33.4
230
80,033 +145.5
94, 758 +64.1 36, 589
+25.4
+29.7
+23.5
+20.7
+19.4

5,928
2,277
1,417
429
155
30

22,982
95(
8, 03(
3,440

393,062 +64.8
19,951 +65.1
105,352 +82.1
80, 899 -3 .9

8,551
4,741
2,822

63(
705

10, 09Í +60.8
10, 766 +9.5

20

1,115
1,860
1,113

-19.2 +70.1
-14.2 +87.5
-9 .9 +97.5
-26. S + .6
-15.7 +89. ‘
- 20.6 - 2 2 . 2

l,0 0 t

1,176
468

27,499
45, 606
35,435
25, 987
28,181
17. 330

i B ased on c o m p arab le d a ta ; excludes Id a h o .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

34

-4 .2
- 22.1
+20.5
+26.9
+65. i
+55.6

-13. f
-15. Í
- 10.6
+26.5
+28.0
-20.7

-14.1
-16.2
-46.9
-51.3
-29.0
-51.1

58,426
66,573
169,981
115,853
42,732

12
0
21

66

11

20, 381
21,918
25, 751
20, 573
14, 715
21,676

-18.6
+ 4. V

-36.7
-30.1
-36.7
+ 1.6

11, 286

116,606 - 11.6
3,020 -1 .7
16,384 -4 .9
25,593 +5.6
1,103 - 22.0
1,313 -38.7

32,980
21, 530
127,703
11, 682
27,018
7,057

85,993
99 247
94,599
82,842
62,788
129,817

290, 252
3,701
23,941
31, 509

-44.2
-23.8
-3 .5
-24.1
- 6.2
-38.0

-3 .8
+29.8
-31.6
+25.4
+49.0
+17.2

-23.3
-37.2
-35.5
-54.6

839 -44.6
2,845 -61.3

1D a ta n o t co m p arab le .

450

Monthly Labor Review—February 1942

T able 4 . —Activities of Public Employment Services for Veterans, by State, November 1941
[Data reported by State agencies, corrected to Dec. 23, 1941]
Complete placements
Percent of change
from— i

Social Security Board region
and State
Number

T otal_________________

_ .

Region I:
Connecticut
. .. .
Maine ________________
Massachusetts_____ _____
New Hampshire_______ __
Rhode Island. . __ _____
Vermont____ . . . _____
Region II:
New York. _________ .
Region III:
Delaware . _______ .
New Jersey.
. ...
Pennsylvania____ _. . . .
Region IV:
District of Columbia. _.
Maryland______________
North Carolina ._ __
Virginia_____ . . . .
West V ir g in ia ._________
Region V :
K entucky.__ __ . . . _ _
Michigan__________ .
Ohio_________
Region VI:
Illinois. __ _______
Indiana______ . . . . _ _
Wisconsin_________ .
Region VII:
Alabama. _. _____ __
F lorida.. ____. .
Georgia___ _________
M ississippi...
South Carolina . . . .
Tennessee...................
Region VIII:
Iowa______ _____ .
M innesota.. . . . _.
Nebraska
North Dakota.
South Dakota . . . .
Region IX:
Arkansas.. _______
Kansas_____________
M issouri... _
Oklahoma . _____ .
Region X:
Louisiana.. _ ____ _ _
New M exico________ _
- Texas. _____ ___
Region XI:
Arizona.
___ _____
Colorado. ... _ .
Idaho______
M ontana__ _ . .
U ta h ... ___ . _
Wyoming_____
Region XII:
California .
Nevada _______ .
Oregon____ ____ _______
Washington___ ____ _
Territories:
Alaska. ______ _____
H a w a ii_____
______

Active file as of N ov. 30,1941
Total ap­
plications
received

Number

October
1941

Novem­
ber 1940

12,779

-2 8 .6

+ 4 .6

44, 005

2 164,006

3+0.2

4—11. 5

2S5
123
201
83
32
54

- 7 .8
-4 0 .3
-1 6 .9
-1 7 .8

+ 5 .6
+86.4
+28.0
+20.3
-3 7 .2

967
1,025
7,436
499
627
223

+ 5 .7
+ 8 .2
- 3 .4
+ 1.4
17 7
+ 3 .2

-6 2 .8
-3 2 .8
+65.7
- 8 .3

-1 9 .4

623
347
1, 718
225
196
85

908

-3 0 .6

+36.1

2,307

(s)

28
283
375

+29.8
+33.0

82
985~
2,675

245
5, 229
9,287

+6 1

-1 8 .2
-3 0 .7

210
144
170
127
55

+ 3 .4
-2 4 .6
-3 1 .7
-3 3 .8
-5 0 .4

+28.8
-1 5 .8
-5 0 .1
-1 2 .4
-5 0 .9

477
596
668
343
437

1,034
1,239
2,608
1,002
2,306

+ 3.4
-.5
-.4
- 5 .3

-3 1 .8
-3 6 . 6
+ 2 .9
-2 7 .8
-2 9 . 2

67
562
845

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

-2 9 .5
+ 5 .6
+39.2

597
2,100
2,417

2,888
7,007
8,862

-7 .7
- 4 .8
-5 .7

-2 1 .0
+21.5
-4 9 .8

609
300
286

-2 0 .3
-1 5 .7
-1 8 .3

+23.8
+ 2 .7
+26.0

3, 571
866
1,088

9. 433
10, 049
5,069

+31.2
-. 2
- 2 .4

+25.8
+56.1
-2 5 .0

89
152
190
70
87
124

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

+ 2 .3
-3 6 .4
+20.2
- 1 .4
+ 3 .6
-2 7 .5

567
1, 046
695
574
371
813

3, 324
4,916
2,927
2,828
1.861
4,148

- 2 .0
-4 .6
-2 .7
+ 4 .6
+ 7.4
+13.2

-1 2 .5
+67.6
-1 8 .4
+39.6
+42.7
+ 1.1

502
364
208
61
51

-2 3 .4
-2 8 .5
-2 8 .8
-5 9 .3
-4 8 .5

+ 5 .0
+41.6
+150. 6
0
-4 0 .0

649
1, 489
413
115
212

2,825
5,179
1,948
912
1,067

- 3 .8
+17.8
-1 2 .6
+ 2.7
+ 5 .4

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

267
309
590
183

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

-5 0 .5
+114.6
+75.6
+36.6

837
635
1,651
854

3,582
3, 213
7,150
5, 078

-1 1 .5
- 3 .4
- 8 .9
+ 1.4

+100.0
- 7 .4
- 7 .1
+80.8

89
115
665

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

-7 7 .4
+36.9
-4 6 .4

412
211
1,330

3, 813
1,113
7,218

+ .6
-2 2 .3
- 4 .1

+14.8
-2 3 .4
- 2 .8

81
101
144
70
93
38

-3 4 .1
-2 5 .7
-4 7 .8
-5 7 .6
-3 2 .1

-3 6 .2
-1 5 .1
- 9 .4
+ 6.1
+19.2

215
463
197
268
226
122

1,068
1,914
1,140
764
530
331

+ 5.1
+ 5 .6
- 2 .1
+22.2
-4 .2
+13.7

-1 0 .2
-1 9 .3
(«)
-3 3 .8
-5 4 .2
-2 1 .4

1, 599
108
405
207

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

+39.4
+21.3
+60.1
-4 4 .8

5,294
162
577
1,097

14, 612
242
1,461
1, 654

+ 6 .0
+13.1
+11.6
+ 6.1

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

82
25

49
104

-1 5 .4

-7Ó.5

46
24

1 Computed only for States reporting 50 or more in both months.
2 Excludes New York; data incomplete.
3 Based on comparable data; excludes New York.
4 Based on comparable data; excludes Idaho and New York.
8 Complete data not reported.
8 Data not comparable.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Percent of change
from— i
Oct. 31,
1941

-8 .2

N ov. 30,
1940

—6Ò! 5

-2 +
-2 8 .0

Employment Services

451

F E D E R A L IZ A T IO N O F P U B L IC E M P L O Y M E N T
O F F IC E S

EFFECTIVE January 1, 1942, the Nation’s public employment
offices were placed under Federal operation,1 the Governors of every
State and Territory having announced their compliance with the
President’s request that they authorize the transfer to the United
States Employment Service of all the regular personnel, records and
facilities of the State employment agencies. Operation of the United
States Employment Service on the Federal level, it was said, will pro­
vide a direct administrative line from the Director through the 12
Regional Labor Supply Offices of the service to the individual State
and local offices.
.
, ,
It was stated that the United States Employment Service hoped to
meet the labor needs of the war industries through a 3-pomt program:
(1) By transferring to war production those workers displaced because
of priorities, (2) by making increased use of existing and potential
labor reserves, including women, older workers, Negroes, and minority
groups against whom there is frequent discrimination, and (3) by
making more effective use of those already employed, through upgrad­
ing of workers and transfers to war production from less-essential
jobs. The training of unskilled or partially skilled workers through
Government- or industry-operated training projects is expected to
play a large part in the program.
Employees operating the State employment offices may be appointed
to positions in the Social Security Board. These positions, however,
are to be excluded from the Classification Act “until such time as the
Federal Security Administrator shall determine that such positions
shall be classified in accordance with the administrative provisions and
salary rates of the Classification Act.
Persons so appointed may, subject to the satisfactory completion of a 6-months’
probationary period, acquire a competitive classified civil-service status m t e
Federal service, subject to such regulations as the Civil Service Commission may
prescribe.

The unemployment-compensation systems in each State will be
operated by the State as heretofore. A plan is to be worked out m
each State by which the Federally operated public employment offices,
where unemployed workers claiming benefits are required to register,
will continue to serve the State agencies administering the unemploy­
ment-compensation laws.
i Federal Security Agency, Social Security Board, Press releases Nos. 6868 and 6885 December 19 and 31,
! 94 p and Executive Orders k o . 8990 (December 23, 1941) and No. 9008 (January 2,1942).

438471— 42-


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Federal Reserve Bank of St. Louis

■ 12

Labor Laws and Court Decisions

C O U R T D E C I S IO N S O F I N T E R E S T T O L A B O R

Right of Employer to Express Opinion in Labor Matters
IN A ruling concerning the National Labor Relations Act, the United
States Supreme Court recently held that an employer may express his
views freely on labor policies or problems, as long as the statements
are not linked with a design to coerce employees, in violation of the act.1
In themselves, such statements are not a sufficient basis to support a
finding that the employer dominated a union. However, the Court
held that an employer’s statements must be considered as part of his
conduct in determining whether there has been a violation.
The case under review resulted from an order of the National Labor
Relations Board directing the Virginia Electric & Power Co. to dis­
establish an independent union of its employees, as being a companydominated organization. The order of the Board was based on its
finding that a bulletin and some speeches made by company officials
interfered with, restrained, and coerced the company’s employees in
the exercise of their rights. The Supreme Court, however, was un­
certain as to the correctness of the Board’s order. Although the
Board held the utterances in the bulletin and speeches to be unfair
labor practices, it did not raise them to the stature of coercion by
reliance on the surrounding circumstances. Therefore, since the
Court was not sufficiently certain whether the Board’s decision was
based on the whole course of conduct of the employer or merely on
the utterances made by him, the case was remanded to the Board for a
redetermination of the issues involved.
Definition of "Hours Worked” in Underground Mines
The Montana Supreme Court, in order to avoid conflicting con­
structions of State and Federal hour laws, has adopted the Wage and
Hour Administrator’s “ portal to portal” ruling in determining the
maximum hours of miners under the Montana hour law.2 Under this
rule, the daily hours of labor include time spent by the miners in
procuring tools and equipment and in awaiting and making use of the
' N a t i o n a l L a b o r R e l a t i o n s B o a r d v. V i r g i n i a E l e c t r i c & P o w e r C o . (62 Sup. Ct. 344).
2 B u t t e M i n e r s U n i o n v. A n a c o n d a C o p p e r M i n i n g C o . (118 Pac. (2d) 148).

452

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Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

453

employer’s transportation facilities. Prior to this interpretation of
the Federal Fair Labor Standards Act, the “ working-force” inter­
pretation of the State law had been generally assumed by mutual
consent of employer and employee. Thus, under the Montana law,
hours worked were considered to embrace only time spent at the lace
of the mine and not to include time spent in procuring tools, etc
In its decision, the court pointed out that prior to the Federal
statute, the State constitutional and statutory provisions alone gov­
erned the hours of labor in underground mines. Upon the exercising
of the Federal jurisdiction, the Federal statute superseded the State
jurisdiction to the extent of any inconsistency, but where not incon­
sistent the State and Federal provisions jointly governed. However,
in order not to make the State and Federal laws “ practically incon­
sistent” and to “ avoid a chaotic condition under our dual form of
Government,” the court considered it desirable “ to accept the Federal
interpretation of the Federal law” and "to apply it to the State con­
stitutional and legislative provisions.”
Jurisdiction of Labor Relations Board Sustained by Supreme
Court in Two Cases
The United States Supreme Court refused to review two lower-court,
decrees enforcing orders of the National Labor Relations Board, thus
leaving in effect decisions of these courts sustaining the jurisdiction of
the Board. In one case,3the Board’s power to regulate the labor rela­
tions of a lumber company making a very small percentage of inter­
state sales was upheld, and in the other4thcBoard was held authorized
to prevent an unfair labor practice which was also a violation of a
contract.
,
. , , ,
The first case involved a retail lumber company whose interstate
sales amounted to only 1 percent of its total sales oi about $200,000,
but whose interstate purchases amounted to more than $1 o0,000. 1he
United States Circuit Court of Appeals at Philadelphia held that the
National Labor Relations Board had jurisdiction of unfair labor prac­
tices in such a case, and this ruling was left in effect by the Supreme
Court. The second case, which was also decided by the Circuit Court
in Philadelphia, involved the question of whether the Board had juris­
diction of an unfair labor practice of an employer if it also was m
violation of a contract. The court affirmed the jurisdiction of the
Board over unfair labor practices regardless of the fact that such prac­
tices might also cause a breach of contract.
. * * * « ,
i N ew a rk

M a r r in g

H M

L o n O . r C o . v.
L e d g e r C o . v. N o t i o n a l

Fed. (2d) 262.


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Federal Reserve Bank of St. Louis

Relations (62
L abor

R e la tio n s

B oord

(62 Sup. Ct. 363), sec

UO

454

Monthly Labor Review—February 1942

Wage-Flour "Split Workweek’’ Rule Upheld
The Federal District Court for the Southern District of Georgia has
upheld the Wage and Hour Division’s “split workweek” rule.5 Under
this holding, employees who perform both exempt and nonexempt work
in the same week are entitled to receive minimum wages and over­
time compensation for all hours in that week. The court said that any
•other decision would defeat the purposes of the Fair Labor Standards
Act by permitting employers to work their employees in covered occu­
pations up to 40 hours a week, then shift the employees to local work
not covered by the act for additional hours without overtime compen­
sation.
The decision in this case grew out of a contempt proceeding insti­
tuted by the Wage and Hour Division against a lumber company for
failure to comply with a consent judgment requiring restitution to its
employees. A number of the company’s employees worked inter­
changeably in the retail branch of the business and in the lumber yard.
While working in the yard, the employees were considered covered by
the act and were paid the statutory minimum wage; but at other
times during the week, while working in a local retailing capacity,
they were paid a lower wage, with no additional compensation for
overtime hours. In computing restitution, the company contended
that these employees had been paid as much as the law required. The
court, however, agreed with the contention of the Wage and Hour
Division, and held that the employees were entitled to minimum wages
and overtime for all hours in any week in which they spent any time
working in the lumber yard.
1 F le m in g

v.

K n o x B ros. L u m b er C o.


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Federal Reserve Bank of St. Louis

Cost o f Living

C H A N G E S IN

L IV IN G C O STS IN L A R G E C IT IE S ,
D E C E M B E R 15, 1941

Summary
THE advance of 0.3 percent in living costs in large cities in December
was the smallest rise in any month since March 1941. Large seasonal
declines in prices of a few important foods reduced the total family
food bill sufficiently to offset advances in other food prices. Housefurnishings and clothing rose sharply between November 15 and
December 15, however, and increases in rent, fuel and miscellaneous
goods and services also contributed to the advance.
In the last quarter of 1941, as a whole, the cost of living rose 2.2
percent, or to 110.5 percent of the average in 1935-39. As in the
previous quarter, the larger increases occurred in cities particularly
affected by defense activities. The average rise in the southern
cities was greater than in other areas.
For every dollar spent by moderate-income families in August
1939—the month before war broke out in Europe—it was necessary to
spend $1.12 in December 1941, to secure the same level of living as
before the war.
Food.—Retail prices of most foods rose between mid-November and
mid-December of 1941, continuing the advance which had been under
way for more than a year, but the increase was moderate in com­
parison with earlier months. There were large seasonal declines in
prices for pork, eggs, and oranges, and lower prices for butter, so that
the food-cost index remained unchanged during that month. On
December 15, the food of wage earners and clerical workers cost 16
percent more than on the same date of 1940, and 21 percent more
than in August 1939 (the month preceding the outbreak of war in
Europe).
Retail prices of oranges declined 22 percent between mid-November
and mid-December. Both California navel and Florida oranges were
late in arriving on the market, creating a scarcity in mid-November.
By mid-December, supplies were available in much greater volume,
with a consequent price decline. Supplies of pork and eggs were also
marketed in increasingly large quantities. Butter prices reflected an


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Federal Reserve Bank of St. Louis

455

456

Monthly Labor Review—February 1942

unusually large supply. T he D e p a rtm en t of A griculture reported
th a t the supply of b u tte r on hand as of Ja n u a ry 1 was th e largest
th a t food dealers have ever reported on th a t d ate.

Sugar prices, generally very sensitive to war conditions, advanced
moderately. After the attack on Pearl Harbor, some grocers volun­
tarily limited purchases to 2, 5, or 10 pounds per customer; this has
been more common since the order of December 13, which froze sugar
stocks in the United States and limited supplies available to retailers
to their 1940 monthly levels.
In the last q u a rte r of the year, the average food bill of wage earners
and clerical workers rose 2.2 percent. B y th e m iddle of Jan u ary ,
prelim inary reports indicated fu rth er increases for m eats and such
staples as n av y beans, sugar, and lard. Egg prices continued their
seasonal decline.

Clothing. With the further advance of 1 percent in clothing costs
between November and December, the family clothing bill in large
cities showed an average rise of 3.6 percent for the quarter ending
December 15, 1941. In 11 of the 34 large cities surveyed quarterly
by the Bureau of Labor Statistics, the increase during the 3-month
period exceeded 5 percent. Retail prices for men’s work clothing and
women’s percale dresses continued to show greater increases than
most articles of clothing. Shoes for men, women, and children also
were reported higher in most cities. Because of the unusually mild
weather in the late fall and early winter, the volume of sales of
women s coats was less than anticipated. Many stores reduced
prices of women’s fur-trimmed coats below September levels in order
to cut their stock before the year-end inventories.
Housefurnishings. Prices of housefurnishings w ent up by 1 percent
in Decem ber, and betw een S eptem ber 15 and D ecem ber 15, 1941,
the to ta l cost of housefurnishings custom arily purchased by lowerincom e families increased, on the average, 4.3 percent. On th e la tte r
date, housefurnishings cost about 15 percent m ore th a n a t the end of
1939. In fu rn itu re the large price rise has been due prim arily to
shoi tages of certain m aterials and to greatly increased dem and resu lt­
ing from higher consum er incomes. D iversion of m aterials to national
defense efforts and Federal excise taxes have been reflected in the
retail prices of electrical equipm ent which have also risen sharply.
C u rtailm en t of im ports of wool since w ar broke o u t in E urope has
caused rugs and carpets m ade of wool to advance approxim ately 25
percent. Prices of sheets have risen consistently since th e first of
1940 and were rep orted 25 to 40 percent higher on D ecem ber 15, 1941,
in m ost cities.
R en t— Changes in ren ts from N ovem ber to D ecem ber differed
widely from city to city, averaging 0.4 percent higher for 21 of the


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Federal Reserve Bank of St. Louis

Cost of Living

457

large cities. Over the quarter the increase in the total rent bill
averaged 1.3 percent in 34 large cities. The greatest increases
occurred in southern cities with large defense contracts. From midSeptember to mid-December the largest advances occurred in Mobile
where employment in the shipyards of the area rose by more than 40
percent and the average rental bill rose by 14 percent. Increases in
rents in Norfolk, Savannah, and Birmingham all exceeded 5 percent.
In all 4 of these cities rents were raised for more than two-fifths of the
homes rented by white families with moderate incomes.
Fuel, electricity, and ice.—With little change in fuel prices in late
November and early December, the increase in the cost of fuel,
electricity and ice was relatively small in the quarter ending December
15, 1941. Generally, coal and wood prices were a little higher in
December than in September. Higher wood prices were largely
responsible for the increase in fuel costs in Portland, Oreg. (+5 per­
cent), Atlanta and Mobile, where wood is extensively used for fuel.
In Cincinnati, as usual at this time of year, the cost of gas to moderateincome domestic users was reduced, while in New York, the decline
of eight-tenths percent in the cost of fuel, electricity, and ice reflected
the reduction of the city’s sales tax from 2 to 1 percent.
Miscellaneous.—Between mid-September and mid-December 1941
automobile prices increased, on the average, from 10 to 15 percent.
The new defense taxes contributed to the increase in the cost of the
goods and services included in the miscellaneous group. Taxes on
automobiles, tires and tubes, and movies were increased as of October
1, and new excise taxes were placed upon toilet preparations, telephone
charges, and railroad fares.
In most cities the cost of barber service, beauty-shop service, and
domestic service rose considerably toward the end of 1941. Fre­
quently, employment agencies reported that it was no longer possible
to obtain domestic help at wages customarily paid by moderateincome families.
Percentage Changes in Cost of Goods
Percentage changes in the cost of goods purchased by wage earners
and lower-salaried workers for 34 cities over the quarer from Sep­
tember 15 to December 15, 1941, are presented in table 1. The Bureau
of Labor Statistics collects prices on a shorter list of goods and
services in 21 cities during the months other than the regular
quarterly periods, March 15, June 15, September 15 and December
15. Table 2 presents percentage changes in these costs in the 21
large cities from November 15 to December 15, 1941.


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Federal Reserve Bank of St. Louis

458

Monthly Lahor Review—February 1942

T able 1.—Percent of Chdnge from September 15 to December 15, 1941, in Cost of

Goods Purchased by Wage Earners and Lower-Salaried Workers, by Groups of Items

City

Average: Large cities. ____.
New England:
Boston__________________
M anchester.. . ______ ..
Portland, M a i n e .. ___ ..
Middle Atlantic:
Buffalo__________________
New York________ _____
Philadelphia_____________
Pittsburgh______________
Scranton.._____ _________
East North Central:
Chicago.. ______________
Cincinnati_______ . . ____
Cleveland_______________
D e tr o it.._______________
Indianapolis_____________
Milwaukee______________
West North Central:
Kansas C ity_____________
Minneapolis ____________
St. Louis________________
South Atlantic:
A tlan ta.. ______ ______
Baltimore. ______________
Jacksonville______ ______
Norfolk.. ______________
R ichm ond.. ___________
Savannah_______________
Washington, D. C ________
East South Central:
Birmingham______ _____
M emphis_____________ _.
Mobile___________ ______ _
West South Central:
Houston_________________
N ew Orleans_____. . . ____
Mountain:
Denver_____ ____ ________
Pacific:
Los Angeles________ . . . .
Portland, Oregon. _____
San Francisco____________
Seattle______
_________
1 Based on 51 cities.

: No change.


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Federal Reserve Bank of St. Louis

All
items

Food

Cloth­
ing

Rent

Fuel,
Houseelectricity furnish­
and ice
ings

Miscel­
laneous

+ 2.2

i + 2 .2

+ 3 .6

+ 1 .3

+ 0 .4

+ 4 .3

+ 2 .6

+ 1 .7
+ 1 .7
+ 2.4

+ 1 .6
+ .4
+ 1 .4

+ 2 .3
+ 3 .9
+ 3.7

+ 2.1
+ 1 .9
+ 1.8

+ .3
+ 1.4
+ 1.1

+ 2 .8
+ 3 .8
+ 6 .2

+ 1 .3
+ 2 .2
+ 3.2

+ 2 .2
+ 1 .8
+ 2.0
+ 1.9
+ 1.5

+ 1.1
+ 2.5
+2.1
+1.6
+ 1.4

+ 3.8
+ 1 .5
+ 3 .2
+ 5 .8
+ 4 .9

+ 1.4
+ •1
+ .3
+ .1
-.1

+ .8
-.8
+ .2
- .4
(2)

+ 5 .0
+ 4.0
+ 2 .8
+ 3.4
+ 4 .8

+ 3.1
+ 2 .4
+ 2 .6
4 2. 6
+ 1 .0

+ 1.0
+ 2 .0
+ 2 .2
+ 2.8
+ 3 .3
+ 2 .4

-.7
+ 2 .5
+. 8
+ 2.3
+ 3 .5
+ 1 .2

+ 3.4
+ 2 .5
+ 3 .9
+ 5 .3
+ 4 .3
+ 4.1

+ 1.3
+ 1 .0
+ 3.1
+ 2 .5
+ 2 .0
+ 1.6

+ .7
- 1 .3
(2)
+ 1.4
+ •1
+ 1.3

+ 4.4
+ 4 .3
+ 4.1
+ 4 .6
+ 4 .6
+ 6 .6

+ 2 .2
+ 2.3
+ 2 .8
+ 2 .7
+ 3.8
+ 3 .6

+ 3 .1
+1. 6
+ 2 .6

+ 2 .2
-. 1
+ 2 .6

+ 3 .7
+ 3.4
+ 5 .6

+ 2.8
4- 4
+ 1.8

4 -1
+ .2
+ .4

+ 5.0
+ 3.9
+ 5 .9

+ 4 .2
+ 3.4
+ 1 .9

+ 2 .8
+ 2 .6
+ 3.3
+ 4 .0
+ 2 .5
+3.1
+ 2 .8

+ 1 .0
+ 2 .7
+ 2 .4
+ 4 .0
+ 2 .5
+ 1.5
+ 2 .6

+ 4 .8
+ 4 .9
+ 6 .5
+ 3.1
+ 5 .2
+ 4 .8
+ 5 .9

+ 1.0
+1. 3
+ 2 .6
+ 6.1
4- l
+ 5 .2
+ .4

+ 2.5
+ .1

+5.4
+ 6.4
+ 7 .5
+ 5 .5
+ 4 .4
+ 5 .6

+ 4 .3
+ 2 .4
+ 3 .4
+ 3.1
+ 2 .6
+ 3 .4
+ 3.3

+ 3 .6
+ 2 .6
+ 5 .1

+ 2 .8
+ 2 .3
+ 4.1

+ 5.4
+ 6 .0
+ 5 .5

+ 5 .7
+ 1 .8
+14.1

+ 2.4

+ 5.1
+ 5 .9
+ 3.9

+ 2 .7
+ 1 .7
+ 2.7

+ 3 .2
+ 2 .3

+ 4 .2
+ 2.1

+ 5 .3
+4.1

+ .5
+ .8

+ 1 .2

+ 3 .9
+ 4.9

+ 3 .3
+ 2 .7

+ 3 .2

+ 4 .3

+ 4 .4

+ 1 .2

+ 3 .9
+ 2 .4
+ 3 .2

+ 6.0
+ 1 .2
+ 4 .0
+ 3.1

+ 4 .5
+ 2.6
+ 5 .0
+ 3 .5

+ 1.8
+ 1 .9

+2.9

+3.3

+ 2.0

+ 1.1
+ 1 .2
+ .5

+ 2.1

+ .8

(2)

+ 4.8
+ 1 .2
+ 1 .8

4 5 .5

+ 2 .9

+ 4 .3
+ 5.7
+ 4 .0
+ 5.1

+3.0

+ 3 .0
+ 3 .2
+ 2 .0

459

Cost of Living

T able 2.—Percent of Change from. November 15 to December 15, 1941, in Cost of

Goods Purchased by Wage Earners and Lower-Salaried Workers, by Groups of Items
All
items

City

Average: Large cities_____
N ew England:
Boston_______
___
M anchester..
.
....
Portland, M aine. _______
Middle Atlantic:
Buffalo__
....
. ..
N ew Y o r k . . . ___. . . .
Philadelphia_____________
Pittsburgh.
_ ______
Scranton. . . .
.
East North Central:
Chicago_________________
C incinn ati... ._
_____
Cleveland______ _ . . . . . .
Detroit _______________
Indianapolis______ . . . . . .
M ilwaukee__ . ______
West North Central:
Kansas C i t y . . . _____
Minneapolis____ _________
___ ____
St. L ou is... . . .
South Atlantic:
A tlanta_________________
B altim ore...
________
Jacksonville_____ ______
Norfolk. .
________ .
Richmond____ _
_____
Savannah_____ _
. ...
Washington, D . C . . . ___
East South Central:
B irm ingham ... ________
M em phis. ______ ______
M obile_________
______
West South Central:
Houston___ ______ _ _ _ _
N ew Orleans ___________
Mountain:
Denver___ ______________
Pacific:
Los Angeles____________ .
Portland, Oreg. . . . . . ._
San Francisco. _. ____ . _
Seattle _________________

Food

Cloth­
ing

Rent

Fuel,
Houseelectricity furnish­
and ice
ings

+ 0 .3

(0

+ 0 .9

+ 0 .4

-.4
(<)
(4)

- 1 .3
- 1 .9
- .4

+ .2
(4)
(4)

+ .2
(4)
(4)

(3)
+ .2
-. 1

(4)
(4)

+ .4
(3)
+ .5
+ .5

+ .2
-.5
+ 1.0

+ .4
+ .5
+ .3
+ 1 .2
(4)

+ .4
(3)

+ .1
(4)

(3)
(3)
(3)
-.1
(3)

+ .8
+ 1.1
+. 4
+ 1.0
(4)

-1 .4
- 1 .4
-1 .2
- .5
+ .3

+ .1
+ .4
+ 2 .5
+ .6
(4)
(4)

(3)
(3)
(3)
+ .9
+ .2
(3)

+ 1.1
+ 1.3
+ 1.8

- .7

+1.1
+ .9
+ 1 .5
+ .9
(4)
(4)

(4)
(4)

+ .7

+ .1
- .9
+ .4

+ .7
+ .9
+ 2 .4

(3)
+• 5
+ 1 .0

+ •1
(3)
+ .1

+• 5
+ 1.6
+ 1 .5

(4)
+ 1 .0

(3)
+ 1 .6

(3)
(3)

- .4
-.3
+ .4
+ .2
0)
0)
(3)

(4)
(4)
(4)
+ .4
+ 1.0
+ .4
(4)
(4)
+ .2

(4)

+• 7

+2.1

(4)
+ 1 .8

(4)
+• 1

+ .7
- .4
+ 1.8

(4)
(4)
(4)
+1.3
+ 2.0

(4)
(4)
(4)
(3)

- .5
+ .7
+ .4

+1.4
(4)
(4)

-.6

+1.3
(4)

-1 .7
+ .8

+ 1.0

- .3

- 1.1

+ .9

+ 1.1
(4)

+ 2.8
- .3
+ .9
+1.4

+ 1.0
(4)
+ 1.2
+ 1.1

+ .6
+1.1

2 +0.1

+ 1.0

Miscel­
laneous
+ 0 .3

+ .7

+ .7

(4)

+ .1
(4)
(4)
+ .4
+ .4
+ .2
+ .5

(4)
+ .2
+ .2
+ .2
+ .2
(4)
(4)
+ .6
+ .3
+ .2
(4)

+ .3
(4)
(4)
(4)

+ .4
(3)
+ 1.1
+ .6
-.1

+1.3
(4)
(4)
(4)
+1.5
+ 2.1

+1.7
(4)
(4)

+ •1
(3)
+ .4

+1.3
(4)
(4)

(4)
(4)

+ .4
(4)

+ .2
+ .1

+ .7
(4)

+ .3
(4)

+ .8

(3)

(3)

(3)
(4)
+• 3
+2.5

(3)
+ 2.1
+ .1
+ .8

+ .6

+ .7
+ .2

+ .6

+ .1

+ .7
(4)
+ .7

+ .3
(4)
+ .4

+ .6

+ .2

1 Based on data for 51 cities; no change.
2 Based on data for 34 cities.
3 No change.

* Monthly data not available.

Indexes of Cost of Goods, 1935 to 1941
Indexes of cost of goods purchased by wage earners and lowersalaried workers are shown, by years from 1935 through 1940, and
by months for 1941, in table 3.


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Federal Reserve Bank of St. Louis

460

Monthly Labor Review—February 1942

T able 3. —Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried

Workers, by Years, 1935-40, and by Months, 1941
[Average 1935-39=100]

Year

1 9 3 5 _____________________________
1 9 3 6 _____________________________
1 9 3 7 _____________________________
1 9 3 8 _____________________________
1 9 3 9 _____________________________
1 9 4 0 _____________________________
1941:
Jan. 1 5 _______________ _____
Feb. 1 5 _____________________
Mar. 1 5 ____.._____ ______ _
April 1 5 _____ ___ _ ______
. May 1 5 ______________
June 1 5 ______
_ ________
July 1 5 _ ___ ________________
Aug. 1 5 ________ ____________
Sept. 1 5 . . . . ____________ __
Oct. 1 5 ______________________
Nov. 1 5 ___ _________________
Dec. 1 5 ___ . . . . . . ________


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Federal Reserve Bank of St. Louis

All
items

Food

Cloth­
ing

Rent

Fuel,
electric­
ity and
ice

Housefurnish­
ings

Miscel­
laneous

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

1 0 0 .4
1 0 1 .3
1 0 5 .3
9 7 .8
9 5 .2
9 6 .6

9 6 .8
9 7 .6
1 0 2 .8
1 0 2 .2
1 0 0 .5
1 0 1 .7

9 4 .2
9 6 .4
1 0 0 .9
1 0 4 .1
1 0 4 .3
1 0 4 .6

1 0 0 .7
1 0 0 .2
1 0 0 .2
9 9 .9
9 9 .0
9 9 .7

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

9 8 .1
9 8 .7
1 0 1 .0
1 0 1 .5
1 0 0 .7
1 0 1 .1

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

9 7 .8
9 7 .9
9 8 .4
1 0 0 .6
1 0 2 .1
1 0 5 .9
1 0 6 .7
1 0 8 .0
1 1 0 .7
1 1 1 .6
1 1 3 .1
1 1 3 .1

1 0 0 .7
1 0 0 .4
1 0 2 .1
1 0 2 .4
1 0 2 .8
1 0 3 .3
1 0 4 .8
1 0 6 .9
1 1 0 .8
1 1 2 .6
1 1 3 .8
1 1 4 .8

1 0 5 .0
1 0 5 .1
1 0 5 .1
1 0 5 .4
1 0 5 .7
1 0 5 .8
1 0 6 .1
1 0 6 .3
1 0 6 .8
1 0 7 .5
1 0 7 .8
1 0 8 .2

1 0 0 .8
1 0 0 .6
1 0 0 .7
1 0 1 .0
1 0 1 .1
1 0 1 .4
1 0 2 .3
1 0 3 .2
1 0 3 .7
1 0 4 .0
1 0 4 .0
1 0 4 .1

1 0 0 .1
1 0 0 .4
1 0 1 .6
1 0 2 .4
1 0 3 .2
1 0 5 .3
1 0 7 .4
1 0 8 .9
1 1 2 .0
1 1 4 .4
1 1 5 .6
1 1 6 .8

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

Standards o f Living

MAXIMUM RENTALS IN CANADA AFTER
DECEMBER 1, 19411
IN Canada on and after December 1, 1941, the maximum rental at
which any real property may be offered for rent or rented shall be (u)
the rental lawfully payable under a lease in effect on October 11, 1941,
or (6) if no lease was in effect on October 11, 1941, but was in effect
at some period since January 1, 1940, the lawful rent payable under
the latest lease in effect since the latter date. For other real property
the maximum rental shall be that which may be determined from time
to time by or under an order of the Wartime Prices and Trade Board.
The above provisions do not supersede or affect any maximum
rental previously fixed by an order of the Board or by the Rentals
Administrator or his deputy, or by a rental committee with approval
of the Rentals Administrator or his deputy, nor shall they “ be deemed
to derogate from any power conferred on the Board by the Wartime
Leasehold Regulations.”
Any person guilty of contravention or failure to observe any regu­
lation, order, or requirement of these regulations is liable upon indict­
ment or upon summary conviction to a penalty not to exceed $5,000
or to imprisonment for a term not to exceed 2 years or both.
RATIONING OF CANNED FOODS IN GREAT BRITAIN
A NEW system of food rationing for canned meat, fish, and beans was
instituted in Great Britain December 1, 1941.2 For these foods, which
had formerly had a chance distribution, 16 coupons of 1 point each
are issued for each month, and the coupons may be used at any time
in the month, at any shop, and in any town. This system of points
without registration or restriction to any particular retailer, which has
been used in the clothes-rationing scheme, was regarded as both
equitable and convenient. The new system was originally planned to
come into effect in the middle of November; but as about 80,000,000
pounds of foodstuffs had to be transported to some 250,000 traders to
meet the new coupons, it was necessary to delay putting the system
into effect until the supplies could be distributed to the more remote
areas. For certain foods 16 points have to be given for each can, for
others, 12, 8, and 4 points.
1 Canada Gazette (Ottawa), Extra, No. 128, December 30, 1941.
2 Data are from the Manchester Guardian Weekly, November 7 and 21,1941; and The Local Government
Chronicle (London), November 22,1941.
461


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Federal Reserve Bank of St. Louis

Vacations With Pay

PAID VACATIONS FOR SALARIED EMPLOYEES IN
DOMINICAN REPUBLIC
SALARIED employees in commercial and other establishments in
the Dominican Republic are granted 2 weeks’ vacation with pay, by
a law passed March 17, 1941.1 Permanent employees, who are paid
on a weekly, fortnightly, monthly, or other fixed basis, are entitled
to the vacation if they have been employed in the enterprise for more
than a year without interruption. Absence on account of sickness
does not disqualify an employee for vacation.
The vacation periods are fixed by the managers or directors of the
enterprises for the different calendar quarters of the year, in such a
manner that the vacations will not interfere with the efficiency or
normal working of the establishment. At the end of each calendar
quarter the list of employees who will take their vacations in the next
quarter will be posted. Changes may be made in these lists until the
third calendar quarter, but any employees removed from the list must
be given their vacations in the following quarter. Each employee is
required to sign this list at the beginning of his vacation as evidence
that the vacation has been granted. In case an employee is not given
a vacation after he has made application in writing, he is entitled
to compensation equal to 1 month’s pay in addition to his salary,
and may enforce payment of this compensation by legal proceedings
even after he has ceased to be employed by the establishment, if he
has instituted such proceedings within 1 month from the date on
which his employment terminated. This right is forfeited if an
employee has refrained from claiming his vacation, for the purpose
of obtaining the compensation.
Any head, director, or manager of an undertaking who, by threats
or other form of coercion, obtains from an employee an acknowledg­
ment of the granting of a vacation which the employee has not
actually been granted, is liable to a fine of not less than 25 nor more
than 200 pesos.
During 1941 the vacations granted were limited to 1 week.
The Ministry of Agriculture, Industry, and Labor has supervision
of the observance of the act.
1International Labor Office (Montreal). Legislative Series 1941—Dom. 2.
462

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Wage and Hour Statistics

WAGES, HOURS, AND WORKING CONDITIONS OF
UNION STREET-RAILWAY EMPLOYEES, JUNE 1, 19411
THE average hourly wage rate of union motormen, conductors, and
bus operators in 59 cities was 79.2 cents on June 1, 1941. This average
covers operators employed on local lines and also those employed on
city-suburban lines which furnish local service. Employees of strictly
intercity lines are not included.
The index of hourly rates advanced 3.6 percent during the period
June 1, 1940, to June 1, 1941, to a new index of 114.4 (1929=100).
The advance during the year was the greatest since a comparable
period between 1936 and 1937 when rates went up 4.7 percent, on
the average (table 1). Beginning in 1934, wage rates as indicated by
union agreements for street railways have advanced steadily, showing
a 19-percent rise since the low point in 1934. Prior to this upward
movement, wage rates had declined during the years from 1931 to
1934 after registering a slight gain in 1930 and remaining stationary
in 1931.
T able 1.-—Indexes of Union Hourly Wage Rates of Street-Railway Motormen,

Conductors, and Bus Drivers, 1929 to 1941
[1929 = 100.0]
Index

Year

100.0
101.0
101.0

loon
iq o i

99.0

10*29
1Q9 Q

(i)

IQQA

1935

-------------------------------------

; 96.1
99.8

Year

Index

100.6

1936_____________________________
1937_____________________________
1938_____________________________
1939_____________________________
1940_____________________________
1941_____________________________

105.3
108.3
109.2
110.4
114.1

1 Not available.

Scope and Method of the W age Study
This study is one of a series of annual surveys started in 1921. In
1941 the Bureau’s agents visited 75 cities and obtained reports of
effective union scales for street-railway or bus operators in 59 of
those cities.
i Prepared by Kermit B. Mohn, under the direction of Florence Peterson, chief of the Bureau’s Industrial
Relations Division.


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Monthly Labor Review—February 1942

The rates reported were those in effect on June 1, 1941. Whenever
possible the comparable rates in effect on June 1, 1940, were also
reported. The 1941 survey included 450 quotations of rates, 430 of
which included comparable data for 1941 and 1940. The union
members covered by these contractual wage rates numbered 70,361,
of whom 69,334 were included in the reports which gave comparable
rates for 1940.
The average rate and the index numbers presented in this report are
weighted according to the number of union members receiving each
rate. Each rate was multiplied by the number of members to whom
it was reported to apply. The resulting aggregates were added and
their sum divided by the total number of members used in the weight­
ing. The average thus reflects not only the actual rates provided in
union agreements, but also the number of members benefiting from
those scales.
The percent of change from the previous year is the ratio between
similar aggregates computed from the rates quoted for identical
unions and service classifications in both years. The weights in both
of the aggregates used in each year-to-year comparison were the
membership figures reported in the second year. The current index
number was computed by multiplying the index of the previous year
by the ratio so obtained.
Caution. Because of changes in coverage, the averages should not
be compared from year to year to determine trend. For trend pur­
poses the index numbers (table 1) should be used, since these were
computed from comparable quotations only and the influence of
changes in coverage has been eliminated. For comparison of the
general wage level of street-railway and bus operations with those of
other occupations at the time the survey was made, the average (table
2) should be used.
Hourly Wage Rates
Hourly wage rates in street-railway and bus operations are generally
graduated on the basis of an employee’s length of service with the
company. Most frequently the agreements provide for an entrance
rate, an intermediate rate, and a maximum rate. A considerable
number, however, specify several intermediate periods, each with
successively higher rates. The specified time for the rate steps varies
widely from city to city. The entrance-rate period is usually 3, 6, or
12 months. The maximum rate most frequently applies after either
1 or 2 years of service, but many agreements provide for longer periods,
ranging up to 5 years and including as many as 12 progressive rate
steps. The differences between the entrance rates and the maximum
rates ranged from 2% to 32 cents per hour in 1941, the most fre­
quently reported differences being either 5 or 10 cents.

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IVage and Hour Statistics

465

DISTRIBUTION OF WAGE RATES OF
UNION STREET-RAILWAY EMPLOYEES
JUNE 1,1941

PERCENT OP
MEMBERSHIP

PERCENT OF
MEMBERSHIP

50 I-----

-----150

40

40

30

30

20

20

10

10

-

.90

$ .40

AND UNDER

ANO UNDER

.5 0

.00

1.00
AND UNDER

1.10

HOURLY WAGE RATE
UNITED STATES BUREAU OF LABOR STATISTICS

Rates for operators of 2-man cars were reported in only 18 of the
59 cities included in the survey. In each of these cities the agreements
provided higher rates for 1-man-car operators and bus drivers than
for motormen and conductors on 2-man cars. Generally, the rates
for bus drivers were the same as for 1-man-car operators. The
differences in favor of 1-man-car operators ranged from 3 to 10 cents
per hour, the most common difference being 7 cents.
The entrance rates for 2-man-car operators ranged from 56 cents
per hour in St. Louis to 80 cents per hour in Chicago. The entrance

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Monthly Labor Review—February 1942

rate for some of tlie subway motormen in New York City was 85.8
cents. However, the majority of entrance rates were between 60 and
70 cents. For 1-man-car and bus operators the range of entrance
rates was from 46 cents per hour in Little Rock and some in New York
to 84 cents per hour in Detroit; almost half of the entrance rates were
between 60 and 70 cents.
Maximum rates for 2-man-car operators ranged from 65 cents in
Birmingham, Denver, and Minneapolis-St. Paul to 87 cents per hour
in Detroit, with a majority of the rates between 70 and 80 cents.
Subway motormen in New York City had maximum rates of 96 cents.
For 1-man-car and bus operators the maximum rates ranged from
53 cents per hour in New Orleans to 95# cents per hour in Pittsburgh.
The majority of the maximum rates were between 70 and 80 cents.
As streetcar and bus operators generally remain permanently in
the employ of one company, a very great majority of the union
members reported were receiving the maximum rates provided in
their respective agreements. Over three-fourths of the union mem­
bers were covered by union scales of between 70 and 90 cents (table 2).
The remainder were almost equally divided at rates either below 70
or above 90.
T able 2.- Distribution of Union Street-Railway Employees by Hourly Rate Groups,

June 1, 1941
Classified hourly rates
Average rate per hour______
Percent of members whose rates were—
40 and under 50 cents-,.
50 and under 60 cents
60 and under 70 cents
70 and under 80 cents...
80 apd under 90 cents .
90 cents and under $1
$1 and under $1.10____

1941
$0. 792
0.1

1.4

10.1

42.3
35.5
10.4
.2

T able 3.—Number of Changes in Union Street-Railway Quotations, June 1, 1940, to

June 1, 1941, and Percent of Members Affected
Amount of rate change
No change reported
Decreases reported ..
Increases reported. _
Less than 2 percent
2 and less than 4 percent
4 and less than 6 percent
6 and less than 8 percent
8 and less than 10 percent
10 and less than 12 p ercent...
12 and less than 14 percent...
14 and less than 16 percent
16 and less than 18 percent
18 and less than 20 percent
20 percent and over____ ..


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Number of Percent of
quotations members
affected
153
2

190
14
32
31
54
26
35
g
4
2
2
4

o07i. Q
y
. *Ax

61. 7
qo
8
o.
9
119
A. &
10 4
27 i
25
A.:
11. t
2.1

3

. 74
ft
.O

Wage and Hour Statistics

467

About 55 percent of the quotations of union scales provided for
increases during the year June 1, 1940, to June 1, 1941 (table 3).
These raises benefited approximately 62 percent of the total member­
ship covered in the survey. Of the organized workers receiving in­
creases, about 80 percent had their 1940 rates advanced by between
2 and 8 percent.
Wage and Hour Regulations 2
Hours per day and week.—Because of the impracticability of adjust­
ing transportation work to a fixed scale of hours, few of the agree­
ments attempt to specify the exact hours of work for operators.
Hours for maintenance, shop, and garage employees are usually 8
per day with workweeks in general of 40, 44, 45, and 48 hours. The
usual workweek for operators is 6 days, although a small number of
agreements provide for a 5-day week. In a few instances it is pro­
vided that each operator shall have only 1 day off in every 8.
Provisions covering operators usually state the number of hours
per regular run, either on a minimum, normal, or maximum basis.
As operators holding regular runs are usually prevented from doing
additional work, the establishing of run-hours is, in effect, the same
as the establishing of an hour scale for the operator. Generally the
agreements provide that all regular runs shall be as near 8 hours in
length as possible. Slightly over one-half of the agreements establish
a guaranteed minimum for regular runs, usually 8 hours. Several
others set the guarantee at 9 hours and others specify 6%, 7%, 7%, or
8^ hours. A few agreements provide the minimum for regular runs
on a weekly basis, with a range from 40 to 50 hours.
About one-half of the agreements specify the maximum number of
hours for regular runs per day, week, or month. The maxima are
usually 1 or 2 hours greater than the length of the normal run and
vary considerably in a range from 8 to 11 hours per day, with 10
hours being the most prevalent. Other agreements provide weekly
maxima of from 48 to 65 hours, two specify the maximum as 270
hours per month, and one provides for 215 hours per month. In
those agreements providing both minimum and maximum hours the
interval generally ranges from to 2l/2 hours per day, usually 1 or 2.
As there are wide variations in the demand for transportation at
different hours of the day, the agreements permit the creation of
“swing” runs composed of two or more short daily assignments. This
privilege is generally limited by the requirement that a majority of
runs shall be straight and that the day’s swing runs must be com­
pleted within a specified number of hours. The maximum permitted
2 The analysis contained in this section, as well as those following, is not restricted to agreements in the
cities included in the previous section relating to wage rates, but includes all agreements in the Bureau’s
files, except those covering companies engaged in strictly intercity or interstate transportation. Altogether,
lfiO agreements are included in the analysis.

438471— 42----- 13


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Monthly Labor Review—February 1942

ranges as high as 16 hours, although 14 hours is most commonly
specified. A number of others list the spread as 12, 13, or 13# hours.
Generally, the intervening time between parts of these swing or split
assignments is paid for when the interval does not exceed 1 hour.
R e s t d a y s . In order to maintain continuous service, the weekly
rest days (required for each employee under most agreements) must
be distributed throughout the week. Assignments of regular runs are
generally prepared on a 6-day basis, and the scheduled day off for any
individual depends upon his selection of a run at the periodic “pick.”
Work on an employee’s rest day is allowed only in an emergency,
and penalty rates for such work are very often provided.
Specific provision for Sunday work is not made in a majority of the
agreements. However, a number of the agreements state that a
greater percentage of runs must be straight on Sundays than during
the week. In addition, those agreements providing a guaranteed
minimum for regular runs often specify that this minimum shall be
less on Sundays than during the week.
E x tr a r u n s — The agreements generally provide that all runs not
regularly scheduled and all short runs which cannot be combined
into regular assignments shall be reserved for men on the extra list.
All substitutions for regular operators are also reserved for men on
the extra list. These extra men are usually required to report for
assignment twice each day, and most agreements specify the mini­
mum pay for making these reports. These guaranties vary widely.
In some agreements extra men are guaranteed 1 or 2 hours’ pay for
each report, or a specified number of hours each day or week; in
others the guaranty is a minimum amount of pay each day, week,
or month. The time guaranties range from 1 or 2 to 8 hours per
day, 30 to 36 hours per week, or 100 to 162 hours per month; cash
guaranties range from $2 to $4.08 per day, $15 to $25 per week, or
from $60 to $110 per month. In all cases these guaranties are con­
tingent upon the extra men making all required reports, disallowances
for misses ’ (tardiness) being deducted on a pro rata basis.
O vertim e. Overtime work in street-railway operations is generally
defined, not as time worked in excess of a specified number of hours,
but rather as time worked in excess of that required to complete a
run or assignment. About one-half of the agreements definitely
state the maximum number of hours a run may be paid for at straight
time, 10 hours being the most prevalent. It is customary in streeti ailway agreements to require that all work outside the regular
assignments be given to men on the extra list, whenever they are
available, and therefore overtime of this type is not frequently re­
quired. However, if a man holding a regular run is required to
perform extra work, except in emergencies, he is generally paid at the
overtime rate and quite often is guaranteed a specified number of
hours, usually 2, at the penalty scale. However, in those agree
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Wage and Hour Statistics

469

ments permitting operators to work from the extra board after their
regular runs have been completed, the operators receive straight
time only for such assignments given them. Operators called to
work on their regular day off are very often paid the overtime rate
and are often guaranteed 4, 5, or 6 hours.
The overtime rate in street-railway agreements is almost universally
time and one-half. Slightly over three-fourths of the quotations,
covering over 84 percent of the organized workers included in the
current survey, were listed at this rate. Agreements covering only
9.5 percent of the members failed to provide a penalty rate. Six
percent were slated to receive other penalty scales and in 1 quotation,
covering but one-tenth of 1 percent of the total members, overtime
was prohibited.
Transjer rates.—Street-railway and bus operators are almost
universally required to be paid the classified rate for the particular
work performed. A few agreements, however, require that regular
operators temporarily transferred to runs not their own shall be
guaranteed the schedule time of their own runs and, if given work
not on the cars or busses, shall be paid whichever rate is higher, their
own or that of the temporary work.
The provisions relating to shop or garage workers sometimes pro­
vide that the employee shall receive his own rate while temporarily
working in another classification, provided the assignment does not
extend beyond a specified period, which may be as long as 15 days.
More frequently, however, such workers are required to be paid the
higher rate applying to the two classifications.
Differentials for disabled and older workers.—Very few of the agree­
ments contain any provisions regarding disabled or older workers.
A small number specify that employees of long service who are
incapable of continuing their regular duties shall be given preference
for any employment the company may have which they can perform.
No differentials or concessions are provided for the older or disabled
worker in the regularly classified occupations.
Allowances.—Nearly all of the agreements specify some allowances
for various incidental duties of the streetcar and bus operators. A
period of from 5 to 15 minutes is frequently allowed at the beginning
and end of runs for the purpose of getting the car ready for service
and for returning it to the barn and making out the required daily
reports. An allowance is usually specified for making out accident
reports, and it is generally provided that employees required to look
up evidence in connection with accidents shall be paid at their regular
rates. Time spent in going to court in connection with accident
cases is generally required to be paid for at straight time.
It is frequently specified that traveling'time between the barn and
relief points shall be paid for when crews are changed away from the
barn. Time spent instructing student operators is usually rated from

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Monthly Labor Review—February 1942

5 to 10 cents an hour higher than the regular rate. Similar additions
to the regular rate are frequently specified for work on snow plows
and sweepers, or for runs on which the operators must handle news­
papers or packages.
It is generally provided that uniforms are to be furnished by the
employees, subject to the specifications of the company. Many of
the agreements state that these may be purchased in the open market
or through the union. Only a very few provide that uniforms
shall be furnished or partially paid for by the company.
Nearly all of the agreements specifically provide that employees
shall be entitled to ride free on any line of the company. A few
extend this privilege to the members of the employees’ families.
A few agreements provide for group-insurance policies to be paid
for by the company and a few others provide sick and accident
benefits.
Union Status
Unionization.—Union agreements covering street-railway and bus
employees are in existence in almost three-fourths of the cities of
over 100,000 population. Smaller cities are less well organized
although a considerable number of agreements have been made.
Practically all of the agreements have been made by locals of the
Amalgamated Association of Street, Electric Railway and Motor
Coach Operators of America (A. F. of L.) except in New York City
and Philadelphia. In New York most of the agreements were made
with the Transport Workers’ Union (C. I. O.) and in Philadelphia
with the Philadelphia Rapid Transit Employees’ Union (nonaffiliated).
The agreements studied were universally negotiated between local
unions and individual transportation companies. In the few cities
having more than one transportation company, separate agreements
exist with each company. As a rule, these agreements are not uni­
form, but vary in details to meet the different conditions in the
separate companies. Generally, the membership of each local union
includes employees of only one company. In a few instances, where
the companies operate large transportation systems with widely
separated barns, or with an extremely large number of employees,
the employees are divided among several locals. In such cases only
one agreement between the company and the joint local unions is
customary.
Union recognition. Almost half (75 out of 160) of the agreements
studied provide for the closed or union shop, with the companies agree­
ing to enforce the provision by discharging any employee who fails to
join or maintain his membership, or who is expelled from the union.
Seven additional agreements provide that all new employees must
become union members. The latter are usually allowed a certain
number of days, generally a probationary period, in which to make

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Wage and Hour Statistics

471

application for membership. One agreement states that “all em­
ployees of the company coming within the classifications covered by
this agreement, after 1 month’s continuous employment, shall be re­
quired to share equally in the cost of maintaining and operating the
collective-bargaining agency.”
About 10 percent of the agreements have the maintenance-of-mem­
bership clause, whereby an employee belonging to the union at the
time the agreement went into effect, or one who subsequently joins the
union, must maintain his membership as a condition of continued
employment. In four additional agreements “the company recom­
mends that all employees now in the association remain members and
recommends that all new men that may enter the service and who are
eligible to the association become and remain members during the life
of the contract. The company prefers to deal with the employees
through the association.”
In the remaining agreements, about a third of the total, the em­
ployee recognizes the union as the bargaining agent for all the union
members and for all the classifications of jobs included in the terms
of the agreement. Most of these specify that membership shall be
entirely optional with the individual employees and that there shall
be no discrimination or coercion to compel any employee to join or
not to join the union. Several agreements specifically state that
the members of the union bargaining committee must be company
employees.
Employees covered by agreements.— A. majority of the agreements
cover workers in the company shops, garages, barns, and maintenance
departments in addition to the operating employees. A few agree­
ments also include linemen. A considerable number include provisions
relating only to motormen, conductors, and bus drivers. These, how­
ever, are mainly from the smaller cities. Clerical employees are sel­
dom included in the agreements; in fact, a small number specifically
exclude workers in the general offices of the company.
Foremen, superintendents, managers, and other company officials
who have the duty of administering discipline are excluded from mem­
bership in the Amalgamated Association by a constitutional provision.
Working foremen, starters, dispatchers, timekeepers, inspectors, and
street men are permitted to be members, but not to participate in the
meetings or activities of the union while holding such positions. The
agreements, therefore, do not specify wage rates or working conditions
for these positions.
About half of the agreements provide for a probationary period,
during which new employees are specifically excluded from the agree­
ment benefits other than the wage-rate provisions. Until this pro­
bation has been completed the employee has no right to appeal to the
union with respect to any grievance, discipline, or his discharge. The
period of probation is most frequently either 60 or 90 days, although

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a number of agreements specify 30 days and several others provide for
a 6-month probation.
C h eck-off. —About one-fourth of the agreements provide that the
company shall deduct the amount of union dues and assessments from
the pay of union members. In practically all of these cases individual
authorizations for the deductions must be obtained, although in sev­
eral cases no mention of authorization is made. In one or two in­
stances the employee’s wife is also required to sign the authoriza­
tion. Several agreements not providing for the check-off permit
the collection of dues on company property on pay days or other
selected times.
H ir in g . —Except in a very few cases, street-railway agreements do
not require new employees to be hired through the union office, nor
do they require new men to be union members before starting to work.
However, one agreement specifically states that “the company will
notify the union of the need of additional men and the union agrees to
furnish competent candidates.” In two other cases the union “agrees
to furnish extra men daily to fully and adequately protect all regular
runs,” and in two others the union “agrees to cooperate with the com­
pany in an honest endeavor to supply sober and physically capable
men needed by the company in the operation and maintenance of its
busses.” In addition to the above-mentioned exceptions, two agree­
ments provide for a union committee to investigate and pass upon
prospective motor-coach operators before they are employed by the
company.
B u lle tin b o a rd s. —The agreements frequently provide that bulletin
boards shall be maintained at each barn, upon which the union may
post notices of interest to its members. Generally no restrictions are
placed upon the kind of notices that may be posted, although a few
require that the notices be approved by the company and that they
be confined strictly to general union business.
J o b r e s tr ic tio n s . —Detailed work regulations are not often made a
part of the streetcar and bus operators’ agreements. A number, by
refei ence, indicate that the regulations shall be as issued by the com­
pany, but that the union shall have the right to discuss any proposed
changes with the company officials before they are made effective.
A .ccess to p la n t a n d re c o rd s. —A small number of the agreements pro­
vide that representatives of the union may interview shop or garage
men on union business during working hours. This privilege is not,
however, extended to include interviewing operators while they are on
duty.
A few agreements specify that union representatives may be present
at the barn on pay days for the purpose of making dues collections.
Several agreements specify that service records of members shall
be open to inspection by the union, and a number require that a

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Wage and Hour Statistics

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union representative be present at each selection of runs or uniform
inspection.
Leave for union officials.—Practically all the agreements provide
that if an employee is elected or appointed to a full-time union office,
he shall be granted leave for the duration of his term without impair­
ment of his seniority rights, provided he mades application for reem­
ployment within a limited time after leaving office. Several agree­
ments specifically state that seniority in these cases shall be cumulative.
Leave Provisions
Leave of absence without pay for personal reasons is provided in
about half of the agreements. The amount of leave is generally
limited to 30 or 60 consecutive days, although one renewal is often
permitted. Absence because of illness is often specifically excepted
from the time limitations. Applications for extended leave are some­
times required to be in writing. Generally, the applications for leave
are subject to approval by the company, although some agreements
either specifically or impliedly make granting of the leave mandatory,
provided the number applying for leave at any one time is limited.
A number of agreements require the company or association to pro­
vide a book in which the employees may register their desire for par­
ticular days off. Many of these agreements specify that, in applying
the limitation as to the number to be granted leave on any one day,
priority in registering shall govern. Union officials are generally
granted priority in leave when time off is necessary foT*official business.
Generally, a request for leave must be made before the list of assign­
ments for the day, on which leave is desired, is made up. Usually,
however, leave may not be requested more than 1 week in advance.
Vacations and Holidays
Vacations with pay .—About 75 percent of the agreements provide
for annual vacations with pay. In 93 of the cases the time specified
is 1 week—69 of these after 1 year’s service, 8 after one-half year,
8 after 2 years, 1 after 3 years, and 7 with no length of service men­
tioned. Ten of the agreements provide for 2 weeks’ and 5 others
specify 10 days’ vacation after 1 year’s service. About 15 percent
of the agreements provide for additional vacations above the mini­
mum in recognition of longer periods of service. The most common
are 2 weeks after either 2 or 5 years, both of these types providing
1 week after 1 year’s service.
Quite often, to be eligible for a vacation, an operator must work a
minimum number of hours during the year, usually about threefourths of full time.
The agreements generally specify that vacations may not be
accumulated but must be taken as earned, and that cash payments

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Monthly Labor Review—February 1942

in lieu of actual time off shall not be permitted. Employees who
are discharged or voluntarily quit the service of the company during
the year generally forfeit all vacation rights. Quite often seniority is
the governing factor in the selection of vacation periods.
H o li d a y s .—Four of the agreements specify that employees shall be
paid when not working on holidays. These four, plus several others,
also provide that the overtime rate shall be paid to those employees
working on holidays.
Generally, holidays are not mentioned in the agreements, since
streetcar and bus service is maintained on such days even though
on a restricted basis. In a few cases a restriction is placed upon
applications for time off on such days, the restriction being that re­
quests may not be made long in advance. Some agreements spe­
cifically state that operators whose regular day off coincides with
the holiday shall be assured their time off before any other requests
are granted. A small number provide further that an operator
having preference, through priority of application, for Thanksgiving
leave may not also have preference for Christmas leave.
Seniority
Seniority provisions are one of the most important sections in
most streetcar and bus operators’ agreements. In the larger cities
where the companies have various barns, divisions, and departments,
seniority is generally applied on the basis of several lists, each de­
signed for particular situations. Separate lists are frequently required
to be maintained on a company-wide basis for each department.
These lists are then divided by occupation, division, barn, or shop.
Agreements with the smaller companies generally provide for sepa­
rate shop and operating lists, and frequently divide the operating
list with respect to motormen, conductors, and bus drivers.
A c q u is itio n a n d lo ss o j s e n io r ity .-—Seniority almost invariably runs
from the date of last employment. Resignation or discharge auto­
matically cancels seniority rights. Many agreements, however, state
that seniority shall be retained through a lay-off occasioned by lack
of work. Seniority is always retained during an approved leave of
absence and generally throughout an absence on account of illness.
About one-fourth of the agreements include a military-service pro­
vision whereby an employee retains his position and seniority during
his term in the armed forces. In most of these cases the seniority
is definitely specified as being cumulative.
Permanent promotion to a supervisory position generally involves
loss of seniority rights in all lower classifications. Some agreements,
however, provide for retention of these rights through a trial period,
during which time the employee may return to his old classification
in full standing.

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Federal Reserve Bank of St. Louis

Wage and Hour Statistics

475

Lay-off.—About half of the agreements provide that during slack
seasons there shall be lay-offs in accordance with seniority and subse­
quent rehiring in inverse order, provided the laid-off men make them­
selves available within a specified number of days. A number of
agreements state that no new employees shall be taken on before
those laid off have been given an opportunity to return.
Promotions and transfers.—About half the agreements provide for
the application of seniority in respect to promotion and transfers.
The promotion provisions usually require that the senior man be
considered or given a trial when a vacancy occurs, but do not require
that he be given the job unless fully qualified. This application of
senioritj^ is frequently on a departmental basis, although in some
cases it is confined to a shop or barn.
A number of agreements provide for an annual “ system pick,” at
which time each employee may choose, according to his departmental
seniority, the barn or shop and classification in which he wishes to
work. When this method is used, voluntary transfers between barns
or shops are generally prohibited at other times.
Some agreements provide that shop or office men may not operate
cars or busses in regular service, and some specify that all positions
as starters, loaders, platform men, or flagmen shall belong to the
“ blue uniform men.”
Employees transferring from one classification to another, as from
street-car operation to bus driving, go to the foot of the list for their
new classification, but frequently retain their rights in their former
classification, temporarily with respect to a voluntary return, or
permanently in respect to reductions in service.
Shift and run assignments.—Seniority is the basis for determining
work assignments in practically all street-railway agreements. At
various times during the year, usually every 3 or 4 months, all regular
runs or pieces of work are listed for selection. The employee with
the greatest seniority will have first choice and so on until all regular
runs have been assigned. Frequently it is required that additional
picks or selection of runs be hold whenever changes in schedules are
contemplated, or whenever permanent vacancies occur on any runs.
Some agreements provide that should an employee select an assign­
ment which the company does not consider him competent to fill, he
shall be denied the assignment provided the union concurs in the
decision, often after a week’s trial. Several agreements provide for
union-management cooperation in making out the list of runs and
timetables for them.
The list of runs is usually required to be posted at the various car
barns or garages several days before the selection is made. The
operators are then given a definite time limit in which they are to
state their choice. In the event an operator fails to make his choice
or is unavailable when his turn to choose arrives, provision is usually

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Federal Reserve Bank of St. Louis

476

Monthly Labor Review—February 1942

made for the superintendent, or the superintendent and a union
official together, to choose for him. In some cases an employee
having seniority may choose to go on the extra list rather than take
one of the regular runs.
After the list of regular runs has been exhausted, the remainder of
the operators are put on an extra list for work assignments other than
1 egular luns. This extra list is also prepared according to seniority.
Generally the list rotates upon any assignment. However, a number
of agreements specifically provide that an operator shall retain his
position at the head of the list until he has been assigned a specified
number of houis work, usually the equivalent of a normal regular
run. A number of agreements provide that the man in order may
not refuse any assignment offered, but others state that this is per­
missible. A few agreements contain share-the-work provisions for
men on the extra list, but in several cases it is specifically prohibited.
In cases of vacancies on the regular list, the run is usually handled
by the extia men in rotation for the first few days, after which it is
definitely assigned to the oldest man in seniority on the extra list until
a 30-day period has elapsed, after which either a reselection of all runs
is held or it is bid in by those regular operators below the one leaving
the vacancy. In either case the man having the greatest seniority on
the extra list moves into the regular classification.
Health, Safely, and Welfare
Physical examinations. About 1 in 10 of the agreements require
the employees to submit to physical examinations either yearly or
upon request of the company. Generally, it is provided that the
examinei must be selected by the company and the union or that
the employee may appeal the findings of the company examiner to his
own physician. The minimum physical requirements are not stated
in the agreements.
Condition of equipment. About 20 percent of the agreements
xequire that each car or bus be checked and placed in good condition
by the shopmen before being delivered to the operator. Items most
frequently mentioned to be checked are brakes, window wipers, and
doors.
Welfare—The operators’ use of seats or stools while on the car
is usually governed by company regulations and not made part of the
agreements. About 10 percent of the agreements, however, speci­
fically require that seats be provided for motormen and conductors.
A small number include a statement of the rules regarding their use,
commonly specifying that they may not be used when the car is in
heavy traffic areas, or that conductors may not be seated when pas­
sengers are standing. A few agreements also require that the operators’
cabs must be equipped with heaters.

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Federal Reserve Bank of St. Louis

Wage and Hour Statistics

477

A frequent provision is that operators may remove their coats
during hot weather, provided they wear approved shirts and no sus­
penders. Comfort stations are often required at turning points, and
a few agreements require the company to provide washrooms and
lockers at each barn.
Discipline
A great number of the agreements contain definite rules for the
handling of discipline. It is usually agreed that employees shall be
informed of any alleged misconduct or violation as soon as possible,
generally within 3 days, after occurrence. After an employee has
been informed of the charges, usually in writing, he is given sufficient
time to obtain witnesses or otherwise prepare his case. He is then
given a formal hearing and in most cases he may be represented by the
union. Many agreements provide for appeal by arbitration.
Practically all of the agreements provide that if an employee is
suspended or discharged for alleged violation of company rules and if,
after investigation by the company and the union, he is found not
guilty of the charge, he shall be reinstated and paid for all time lost.
Specific causes for discharge are not frequently mentioned in the
agreements. Those most often specified are repeated “misses”
(tardiness) within 30 days, unreported absence from duty, intoxica­
tion, and irregularities in handling fares. A number of agreements
provide that unreported absence shall be cause for dismissal, but that
the employee’s record shall be marked “resigned.”
In many cases a definite method of recording disciplinary action is
provided. It is frequently specified that the record must contain the
employee’s reply to the charges. If only the company maintains these
records, they are often available for inspection by accredited union
officials. Several agreements provide for a duplicate set of records,
one to be furnished to the union.
Several agreements, in open as well as closed shops, provide that
the company will dismiss or suspend a member of the union, if the
union requests such action, because the member has violated the
union’s rules or laws. Usually such action is taken by the company
only after its own investigation. A few agreements specify that an
employee may be dismissed through joint action of the union and
company for “interfering with or disturbing the course of negotiations
between the union and company or for interfering with or disturbing
the service or goodwill between the company, employees, and public.”
Operators, both regular and extra, are generally penalized for
reporting late by being required to serve specified periods at the foot of
the extra list. While serving a penalty at the foot of the list an oper­
ator receives pay only for extra assignments that may be given him.
The time required to be served at the. foot of the list is usually 1 day

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Federal Reserve Bank of St. Louis

478

Mon thly Labor Review—February 1942

for the first late report or “miss” within 30 days. Subsequent misses
within 30 days carry increasingly greater penalties. Usually a fourth
miss within 30 days is specified as cause for discharge or other severe
disciplinary action.
Adjustment of Disputes
Grievances.—In addition to the prevalent provision that the com­
pany will meet and treat with the union representatives for the settle­
ment of any differences that may arise between them, many agree­
ments contain more specific provisions for the procedure in these
cases. About a fourth of the agreements specifically require employees
to present individual grievances to the heads of their departments
before the matters may become subjects for union-management
discussion. A number of agreements name the company officials
with whom successive conferences are to be held. Most frequently
these provide that the union may carry its case to the highest company
official if a satisfactory settlement is not obtained in any previous
conference. Many cases require each company official to render his
decision within a specified time after the matter in dispute has been
brought to his attention. One or two agreements provide definite
conference committees of both sides to be used in settling disputes.
Arbitration.—Practically all of the agreements provide for arbitra­
tion in the case of differences, pertaining to the application of the terms
of the agreement, that cannot be mutually adjusted. A number of
agreements specifically state that arbitration is to be a last resort and
that both parties shall make every effort possible to reach an under­
standing through direct negotiations. One or two agreements state
that permission to arbitrate must be obtained from the international
office of the union.
About one-fourth of the agreements provide for arbitration of the
terms of succeeding agreements. A few agreements limit arbitration
so as to exclude matters fixed and determined by the agreement,
improper handling of fares or transfers, or questions of union repre­
sentation or recognition.
All of the agreements providing for arbitration specify the appoint­
ment of temporary arbitrators as the occasions may arise, except in a
few cases where State arbitration or conciliation boards are mentioned.
Nearly all of the agreements providing arbitration state that the board
shall be composed of two members, one chosen by each side, with an
impartial chairman appointed by the other two. Under about onefourth of the agreements the first two appointees attempt to reach a
settlement before selecting the third member. A very few agree­
ments specify larger boards. If the original appointees are unable to
agree upon an impartial chairman within a specified time, it is fre-


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Federal Reserve Bank of St. Louis

Wage and Hour Statistics

479

quently required that the union and company confer in regard to
naming new appointees or concerning a method of selecting an im­
partial member. A small number of agreements designate a particular
judge or other public official who shall name such impartial chairman.
In one case the judge selected appoints the entire board. In about 10
percent of the agreements, all members are required to be disinterested
persons, in that none may be either presently or formerly connected
with either party as members, employees, or stockholders. Usually it
is provided that if either side fails to name the board member within
a specified time, the party so failing shall forfeit its case.
Requests for arbitration may come from either party and are usually
required to be in writing. The decision of a majority of the board is
always considered final.
Strikes and lock-outs.—About 40 percent of the agreements contain
specific restrictions upon strikes and lock-outs. Most of these flatly
prohibit any strike or lock-out for the duration of the agreement. In
addition about 15 percent prohibit such action pending arbitration
and almost one-fourth of all the agreements place a ban on sympathetic
strikes.
In addition to the restrictions upon strikes incorporated in the
agreements, each local union is bound by the restrictions contained in
the constitution of its association. The constitution of the Amalga­
mated Association provides that a strike vote may be taken only after
negotiations for the settlement of the dispute have been tried and
have failed. Strike votes must be by secret ballot and every member
must be given a ballot. Two-thirds of the votes cast are required for
an affirmative decision. Following an affirmative vote, the inter­
national president must be notified to send a representative, who shall
investigate and attempt to secure a settlement through negotiation
or arbitration. In case of failure in these negotiations the international
representative is then required to secure approval from a majority of
the general executive board before authorizing a strike. A local
division entering upon an unauthorized strike forfeits all rights to
assistance and renders itself subject to expulsion from the Association.
Duration of the Agreements
About 60 percent of the agreements are written for a term of 1
year, with provision for continuance from year to year, provided
neither party notifies the other of a desired change to be effective at
the annual renewal date. Most of the other agreements are written
for 2-year terms, although a small number run for 3 years. Several
others cover periods of 13 to 18 months and one or two extend 4 or
5 years.


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Federal Reserve Bank of St. Louis

480

Monthly Labor Review—February 1942

It is generally specified that notice of any desired change, which will
result in reopening the agreement, must be given 30 days in advance
of the renewal date. A 60-day minimum is provided in a number of
others, and periods of 15 or 45 days appear in a few. Those agree­
ments extending more than 1 year sometimes provide for the reopen­
ing of negotiations at the anniversary date for the purpose of discuss­
ing wages only. One or two specified that wage discussions could be
automatically opened when the cost of living had advanced by a fixed
percentage.
Rates in Each City
The union rates per hour in force on June 1, 1941, and June 1, 1940,
by city, are shown in the following table. Hours are not given, since
the hours of work are irregular, depending on the “ run.” Any
changes in scales since June 1, 1941, which have come to the attention
of the Bureau of Labor Statistics appear in the footnotes.


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Federal Reserve Bank of St. Louis

481

Wage and Hour Statistics

4. — Union Rates of Wages of Street-Railway Employees, June 1, 1941, and

T able

June 1, 1940, by Cities
R a te s of w ages
per hour
J u n e 1,
1941

J u n e 1,
1940

A tla n ta , Ga.

.610
.660
.690

$0. 565
.615
.645
.635
.685
.715

.570
.620
.650

B irm ingham , A la .

1-

man cars:
First year_____ _____ _____
Second year______________
Third year_______________
man ears and busses: First year____ ___________
Second year____________
Third year________ '_____

.600
.620
.650

.600
.620
. 650

.675
.695
.725

.675
.695
.725

Boston, M a ss.

man cars:
First 3 m o n th s ....................
4-12 m o n th s .........................
Thereafter_______________
1-man cars and busses:
First 3 months__ _______
4-12 m on ths..........................
Thereafter___________ ____
Rapid transit lines:
Motormen_______________
Guards:
First 3 m onths_______
4-12 m onths...................
T hereafter..._________

2-

.580
.640
.780

.580
.640
.780

.680
.740
.880

.680
.740
.880

.830

.830

.580
.640
.780

.580
.640
. 780

.800

. 800

B u tte , M o n t.

Busses______________________

Chicago,

F ir s t 3 m o n t h s ..........
4-12 m o n t h s .. . 1 ____
A fte r 1 y e a r________
N ig h t c a rs ...................
-m an c a r s ..........................
N ig h t c a rs .............. .
B usses:
U n d e r 40 passengers:
D a y . . .....................
N ig h t__________
O v er 40 passengers:
D a y . . ...................
N ig h t................. ..

1

.585
.605
.625

.800
.830
.850
.870
.930
.950

.560
.580
.600

.750
.780
.800
.820
.880
.900

.850
.870

.800

.930
.950

.880
.900

1In crea se of 5 cen ts p e r h o u r J u ly 1,1941.

a In crease of 1 c e n t p e r h o u r S ep te m b er 1,1941.


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Federal Reserve Bank of St. Louis

Motormen:
First 3 months ______
4-12 months________r.
After 1 y e a r ..____ _
Conductors:
First year___________
After 1 year . ______
Guards, regular.. _______
Guards, extra:
First 3 months ______
4-12 months_________
After 1 year__________

$0. 807
.816
.861

$0. 757
.766
.811

.798
.816
.798

.748
.766
.748

.770
.780
.789

.720
.730
.739

1. 640
1.670
1.690

.620
.650
.670

1.710
1.740
1.760

.690
.720
.740

2. 720

2.750
2.770

.670
.700
.720

2. 790
2.820
2.840

.740
.770
.790

.660
.690
.710

.600
.630
.650

.590
.620
.640

.560
.590
.610

.670
.690
.710

.610
.630
.650

C incinnati, Ohio

2-man cars:

First 3 months__________
4-12 m onths_________ . . .
After 1 year_____________
1-man cars and busses:
First 3 m onths. .................
4-12 m onths_____________
After 1 year_____________
Cleveland, Ohio

2-man cars:

First 3 months__________
4-12 m onths_______ ___
After 1 year. ___________
1-man cars and busses:
First 3 months _________
4-12 months___ _________
After 1 year. ___________
Colum bus, Ohio

1-man cars and class A busses:

First 3 months___________
4-12 m onths______ _____
After 1 year. ................. .
Class B busses:
First 3 months___________
4-12m onths.. . .
. .
After 1 year. ___________

(See Rock Island (111.) district.)

III.

2-m an cars:

.—C o n tin u e d

D avenport, Iowa

Charleston, S . C.
B usses:
F ir s t 3 m o n th s _____
4-12 m o n th s ________
T h e re a fte r__________

111

J u n e 1,
1940

E le v a te d railw ay :

B ingham ton, N . Y .

2-

J u n e 1,
1941
Chicago,

2-man cars and feeder busses:
First 9 m onths___________
$0. 600
Second 9 m onths_________
.650
Thereafter.______________
.680
1- man cars, busses, and trolley
coaches:
First 9 m o n th s.____ ______
.670
Second 9 m onths.................
.720
Thereafter.______________
.750

Busses:
First 3 m onths................... .
4-12 m onths_____________
After 1 year______________

R a te s of w ages
per hour

City and classification

City and classification

D ayton, Ohio

1-man cars and busses:

Company A:
First 3 months
.. .
4-12 m onths......... .........
After 1 year____ ___
Company B:
First 6 months .
7-12 m onths_________
After 1 year ________

.600
.650
.700

Denver, Colo.

2-man cars:

First 3 m onths. _________
4-12 months_____________
13-18 months____________
19-24 m o n th s .___ _____
After 2 years. .............. —

.610
.620
.630
.640
.650

.590
.600
.610
.620
.630

482

Monthly Labor Review—February 1942

T able 4. — Union Rates of IFages of Street-Railway Employees, June 1, 1941, and

June 1, 1940, by Cities— Continued
Bates of wages
per hour
June 1,
1941

June 1,
1940

Denver, Colo .—Continued

1-man cars and busses:

First3m ®nths . .................
4-12 m onths_______ ____.
13-18 months..-.*_________
19-24 months____________
After 2 years. _________

June 1,
1941

$0.6fi0
.670
.680
.690
.700

$0.640
.650
.660
.670
.680

. 635
.665
.710

.625
.655
.700

D es M oines, Iow a

First 3 m onths..
____
4-6 m o n th s_______ .
7-12 months
. .. .
Second year______
Third year_______
After 3 vcars______ __
North T.ittle Rock division:
1-man cars and busses:
First 6 m onths_______
7-12 months_________
Second vear___ _ ..
Third year_____ ___
After 3 years_________

Detroit, M ich.

L os Angeles, Calif.

2-man cars:
First 6 months___________

Pacific Electric Co.:
2-man cars (local):
First 3 months_______
4-12 months___ ____
Second year.. . ____
After 2 years_________
2-man cars (interurban):
First 3 m onths.. . . ...
4-12 months. . . . . .
Second year_______ .
A rter 2 years__ ____
Single-track cars:
First 3 m onths_______
4-12 months. ____ ..
Second year.. _______
After 2 years . . ____
1 -m an c ars a n d m o to r
coaches:
First 3 months____...
4-12 m onths..
____
Second year.. .
__
After 2 years__ _____
Motor Transit Co.:
Busses:
First 3 months_____ _
4-12 m onths_________
Second y e a r... . . .
After 2 years_________
Los Angeles Railway Co.:
2-man cars:
First year___________
Second y e a r.._ _ ___
Third vear__________
1-man cars:
First year . ____ _
Second year.. -- -----Third year____
Busses:
First vear_____ _ ...
Second y e a r... _____
Third year-. . ____

Second fi months_________
After 1 year___________ _
Owl s h if t_______ ______
1-man cars and busses:
First fi m onths__________
Second 6 m onths.. ______
After 1 y e a r.. ___________
Owl shift_________ _____

.790
.830
.870
.970

.750
.790
.830
.930

.840
.880
.920

1.020

.780
.820
.860
.960

.590
.610
.630

.560
.590
.610

3. 650
3. 720
3.750

.600
.660
.690

.640

.590

.670
.690
.740
.470

.650
.670
.720

.570
.620

.530
.580

D u lu th , M in n .

Busses*
First year ___________ .
Second year.
________ .
After 2 years___________ _
E rie, P a.

Busses:
First 6 m onths__________
7-12 months__________ ..
After 1 year ___________
Grand R a p id s, M ich.

Busses____ ________ ________
Indianapolis, Iv d .

1-man cars and Cornnany A
busses:
First year . . _____ _ _
Second year.. . _______
After 2 years____________
Company B b u sse s.i___ .. .
Jackson, M is s .

Bassos:
First 6 m onths____ _____
After 6 m onths__________
Jacksonville, Fla.

Busses:
.490
.550
First 6 months__________
Second 6 months_________
.560
.500
.510
Second year_____________
.570
Third year______________
. 520
.580
Fourth year_____________
.590
.530
After 4 years____________
.600
.540
3 Plus a bonus of H cent for each hour worked.


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Federal Reserve Bank of St. Louis

June 1,
1940

L ittle Rock, A r k .

1-man cars and busses:

1-man ears, trolley busses, and

motor coaches:
First 3 m onths. _________
4-12 m onths______ . . .
After 1 y e a r ......... ............. .

Rates of wages
per hour
City and classification

City and classification

$0.460
.480
.510
.540
.570
.630
.460
.480
.510
.540
.600

$0.420
.450
.480
.530
.530

.635
.645
.660
.680

.635
.645
.660
.680

. 655
.665
.680
.700

.655
.665
.680
.700

.705
.715
.730
.750

.705
.715
.730
.750

.705
.715
.730
.750

.705
.715
.730
.750

.705
. 715
.730
.750

.705
.715
.730
.750

.660
.720
.750

.560
.620
.650

.760
.820
.850
.760
.820
.850

.630
.690
.720

.580
.610
.630
.650

.570
.600
.620
.640

M adiso n , B is.

Busses:
First 6 m onths___
__
7-12 m onths..____ ______
13-18 m onths____ _______
After 18 m onths____ _____

483

Wage and Hour Statistics

T able 4. — Union Rates of Wages of Street-Railway Employees, June 1, 1941, and

June 1, 1940, by Cities— Continued
Rates of wages
per hour

Rates of wages
per hour
City and classification

City and classification
June 1,
1941

M anchester, N . H ,

June 1,
1940

N e w H aven, C onn.

Busses:
First 3 m onths_____ _____
4-12 months. ___________
After 1 year_____ _ ___

1-man cars and busses:

$0. 600
.660
.730

$0.550
.610
.670

M e m p h is , T erm .

First 3 m onths__________
4-12 months_____ _______
After 1 year ____________

$0. 720
.750
.790

$0. 640
.670
.710

.480
.490
.500
.510
.520
.530

.450
.460
.470
.480
.490
.500

.792
.869
.957

.792
.869
.957

.638
.660

.638
.660

.521
.528
.561
.616

.521
.528
.561
.616

.858
.960

.858
.953

.648
.700

.648
.700

N e w Orleans, L a .

1-man cars and busses:

First y e a r... _ ________
_ ...
Second year______
After 2 years_____ ___

.615
.665
.715

.605
.655
.705

.670
.690
.710
.730

.670
.690
.710
.730

.720
.740
.760
.780

.720
.740
.700
.780

.590
.620
.650

.590
.620
.650

.680
.710
.750

.680
.710
.750

4. 530
«. 580

.500
.550

M ilw a u kee, W is.

2-man cars:

First year_________ _____
Second year_____________
Third year__________ . . .
After 3 years_________ . _
1-man cars and busses:
First year_______________
Second y e a r..____ ______
Third year______________
After 3 years____________
M in n ea p o lis, M in n . (includes
S t. P a u l, M in n .)

2-man ears:

First year..............................
Second year____ ________
Third year______________
1-man cars and busses:
First year_______________
Second year_____________
Third year______________
M obile, A la .

Busses:
First 6 months_________ _
After 6 m onths_________
M oline, Til.

(See Rock Island (111.) district.)
N ashville, T e n n .

Busses:
First 3 m onths. ________
4-12 months___________ .
13-18 months__________
19-24 m onths____________
After 2 years.. _________

.540
.580
.600
.630
.660

.540
.580
.600
.630
.660

N ew a rk, N . J .

1-man cars and busses:

First 3 m onths__________
4-12 months____ ________
After 1 year___________ .
Ironbound Transportation Co.:
Busses:
Class A_____________
Class B _____________
Class C . .........................
Class D __________ ..
Class E __ __________
4 55 cents per hour Dec. 1,1941.
8 COcents per hour Dec. 1,1941.

4 3 8 4 7 1 -4 2 -

June 1,
1941

June 1,
1940

-14


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.660
.680
.700

.660
.680
.700

.600
.560
.530
.510
.480

.600
.560
.530
.510
.480

Busses (Algiers Division):
First 6 months ________
7-12 m onths... . . . ______
13-18 m onths______ .. .
19-24 m onths____________
25-30 m onths____________
After 30 m onths.
______
N e w Y ork, N . Y .

Subways:
B. M. T. System:
Operators:
First year________
Second year______
After 2 years_____
Conductors:
First 2 years...
After 2 years_____
Trainmen:
First 2 years______
Second 2 years____
Fifth year________
After 5 y ears.. ___
I. R. T. System:
Motormon:
First year________
After 1 year.. . . . .
Conductors:
First 2 years______
After 2 years. ___
Conductors (multipleunit-door control):
First 2 years______
After 2 years. .
Trainmen:
First year-----------Second year______
After 2 years. ___
Trainmen (multipleunit-door control):
First year________
Second year. . . . .
After 2 years. __
Surface cars:
Third Avenue Railway
System:
First 3 months ______
4-6 m onths__________
7-9 m onths....... ...........
10-12 months. _______
13-15 months___ _____
16-18 months________
19-21 months_________
22-24 months_________
Third year____ _____
Fourth year...................
Fifth year___________
After 5 years_________
Special beginners ___

.668

.668

.700

.700

.574
.583
.633

.574
.583
.633

.594
.605
.655

.594
.605
.655

.460
.480
.500
.530
.550
.570
.590
.610
.700
.710
.720
.760
.600

.460
.480
.500
.530
.550
.570
.590
.610
.700
.710
.720
.760
. 6C0

Monthly Labor Review—February 1942

484

T able 4. — Union Rates of Wages of Street-Railway Employees, June 1, 1941, and

June 1, 1940, by Cities— Continued
Rates of wages
per hour

Rates of wages
per hour
City and classification

City and classification
June 1,
1941
N e w Y ork, N . Y.—Continued

June 1,
1941

June 1,
1940

June 1,
1940

N ew Y o rk, N . Y .—Continued

Busses—Continued.
Surface cars—Continued.
Avenue B and East Broad­
Brooklyn-Queens Transit
way Transit Co.:
Lines:
First 6 m onths-.____
$0,500
$0. 500
First year_________ - $0. 521
$0. 521
.560
7-12months.—
.560
.528
13-18 months_____ _
.528
; 620
.620
Second
year___.550
19-24 m onths___
.550
.640
.640
Third y e a r...
.572
25-30 months.
.572
Fourth
year..
..
.690
.690
.594
.594
31-36 months. ____
.740
After 4 years____— .
.740
.616
37-42 months _
__
.616
.638
43-48 m onths.
.638
___
Queens - Nassau Transit
.660
Fifth year.
. .
.660
Lines:
.770
After 5 years_________
.770
.580
.638
First year. ________
.680
Queensboro Bridge Railway.
.680
.620
.680
Second year _ .
Busses:
Third year_____
.660
.760
Fifth Avenue Coach Co.:
Fourth year.. _
.710
« .810
Drivers:
.740
.850
After 4 years..- - .
.770
First year___
.690
Steinway Omnibus Co.:
Second y ear.. _ .
.780
.760
.460
First
3
months
_
.460
.810
Third year_____
. 790
.480
.480
4-6 m onths____ ____
.820
Fourth year___. . .
. 800
.500
.500
7-9
m
onths..
.
.830
After 4 years_____
. 810
.510
.510
10-12 m onths. . —Conductors:
.520
.520
13-15
m
onths.
_____
.700
First year___
.620
.540
.540
16-18 m onths.
. .710
Second y e a r ___
. 690
.560
.560
19-21
months.
.740
Third year___.
. 720
.580
.580
22-24
m
onths_______
.750
Fourth year____ _
. 730
.590
.590
Third
y
e
a
r...
___
.760
After 4 years_____
.740
Fourth year.
.620
.620
New York City Omnibus
.630
.630
___
Fifth year____
Co.:
.700
.770
After
5
years
...
.650
.610
First 6 m onths_____
Staten Island Coach Co.:
700
.740
7-12 m onths____ ___
.615
7.680
First
3
m
onths_______
760
.800
Second year. _ . . . . .
.640
7.705
4-6 m onths__________
820
.860
Third year___
. .
.665
7.730
7-9
m
onths.
_
.
.
.
.
.
.880
840
Fourth year.
___
.690
7.755
10-12 m onths____
.940
After 4 years____
.900
.715
7.
780
13-18
months.
Comprehensive and East
.750
7.815
19-24 months---- --------Side Cos.:
.785
7.850
After
2
y
e
a
rs...
.
•
.600
First 3 months______
.560
.673
North Shore Bus Co.:
4-12 months___ . . . _
.633
.605
.670
.720
.
—
_
First
year___
Second year . . . .
.680
.627
.770
.755
Second year_________
Third year. . .
. . .
.715
.660
.870
.790
Third
year..
Fourth year___
.750
.693
.870
.880
Fourth y ear...
After 4 years_____
.820
.770
.870
After
4
years______
Third Avenue Railway Systern:
M anhattan and Queens
.460
First 3 months_______
.460
Line:
.480
4-6 months___
.480
.610
.610
First 6 m onths.
-_.
.500
7-9 m o n th s .___
.500
.640
.640
7-12 months - .530
10-12 months. ______
.530
.665
.665
Second y e a r... ---.550
13-15 m onths._ ___
. 550
.690
.690
Third year. __ - ___
.570
16-18 months. . .
.570
.770
.770
After 3 years____ -.590
19-21 months. . . . .
. 590
Jamaica
Busses,
Inc.:
.610
.610
22-24 m onths. .
___
.550
.610
First year_____ _____
.700
Third y e a r...
...
.700
.580
.640
Second year___
- .730
Fourth year.
____
.730
.610
.670
Third
year____
.750
Fifth year___ ____ _
.750
.650
.720
Fourth
year
..................
.780
After 5 years____
.780
.700
.770
After
4
years____
___
.600
Special beginners . _
.600
Green Lines:
Brooklyn Bus Corporation:
.605
.605
First
year.......................
.521
. 521
First year___________
.630
.630
Second year____
.528
13-18 m onths_____ „
. 528
.660
.660
Third
y
ear..
.
____
.550
.550
19-24 months. _ __
.770
.790
After 3 years__ —
.572
.572
25-30 months.
__
Schenck
Transportation
.594
.594
31-36 months.
37-42 months
.616
Co.:
.616
.650
«. 650
43-48 months
First year...... .............
.638
.638
.680
8.680
Fifth vp.ar
Second y e a r ...................
.660
.660
.725
».
725
After
2
years___
_
—
.770
.770
After 5 years. _
9 85 cents per hour Dec. 31,1941.
7 2H-cent increase Aug. 1,1941.
81-6 months, 65 cents per hour ; 7-12 months, 70 cents per h o u r; 13-24 months, 72 cents per hour; after 2
years, 77 cents per hour; June 12,1941.


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Federal Reserve Bank of St. Louis

485

Wage and Hour Statistics

T able 4. — Union Rates of Wages of Street-Railway Employees, June 1, 1941, and

June 1, 1940, by Cities— Continued
Rates of wages
per hour

Rates of wages
per hour
City and classification

City and classification
June 1,
1941

7-12 months
____
Second year
After 2 years
___
Interurban_________ ____

$0. 570
.590
.620
.650
.670

$0. 620
.640
.670
. 700
.750

.660
.680
.700

.660
.680
.700

Subway, elevated, and highspeed lines:
Motormen:
First 6 m onths_______
7-12 m onths_________
13-18 months ________
19-24 m onths______ _
After 2 years _______
Conductors:
First 6 m o n th s ______
7-12 m onths_________
13-18 m onths_________
19-24 months________
After 2 years_________
2-man cars:
First 6 months . . ______
7-12 months
13-18 m o n th s............ . ..
19-24 months. __________
After 2 years
. . ____
1-man cars:
First 6 m o n th s ________
7-12 months. .
_______
13-18 months____________
19-24 months
After 2 years
Busses:
First 6 months. ______ ..
7-12 m o n th s____ ___ ..
13-18 months____ ______
19-24 months____________
After 2 years__________ ..

.730
.755
.780
.805
.830

.680
.705
.730
.775
.780

.650
.675
.700
.725
.750

.650
.675
.700
.725
.750

.650
.675
.700
.725
.750

.650
.675
.700
.725
.750

.730
.755
.780
.805
.830

.700
.725
.750
.775
.800

.730
.755
.780
.805
.830

.730
.755
.780
.805
.830

Phoenix, A r iz .

___

.750

.750

First 3 m onths______ ___
4-12 m onths_____________
After 1 year_____________
Busses:
First 3 months
___
4-12 months
...
Second year
After 2 years

$0. 800
.830
.850
.720

$0. 780
.810
.830
.720

.725
.755
.775

.725
.755
.775

Rochester, N . Y .

Busses:
First 3 m onths___________
4-12 m onths_____________
After 1 year_____________

.750

.690

.740
.760
.780

.680
.700
.720

.660
.680
.700

.625
.645
.665

.560
.620
.680
.730

.540
.600
.660
.710

.630
.690
.750
.800

.610
.670
.730
.780

.525
.550

.525
.550

«. 580
«.660

.530
.610

I». 745

.745

H. 625
ii. 650
ii. 675
ii. 700
ii. 725

.600
.625
.650
.675
.700

.725

.725

R ock Island (III.) District

Busses:
First 6 m onths___________
7-12 m onths_____________
After 1 year.... .................... .
S t. L o u is, M o .

2-man cars:
First 6 m onths___________

7-12 m onths___________
13-18 m o n th s .___
——
After 18 m onths_________
1-man cars and busses:
First 6 months. . _____
7-12 m onths_____________
13-18 months ................
After 18 months_______ .
Service cars:
First 3 years__ ___ ____
After 3 years_______ ____
S t. P a u l, M in n .

(See Minneapolis, Minn.)
Salt L ake C ity, Utah

Busses:
First year____________ ..
After 1 year_______ ____
S a n A n to n io , Tex.

Pittsburgh, P a .

.810
.900
.955

.810
.900
.955

.690
.800
.830
.840

.630
.740
.770
.780

.700
.650
Busses......... ............................. 8 Increase of 1 cent per hour October 26,1941.
10 Increase of 2 cents per hour July 1,1941.
n Increase of 2)<j cents per hour July 1,1941.


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Federal Reserve Bank of St. Louis

First 3 months___________
4-12 m onths________ ___
After 1 year- ______ _ ..

2-man subway cars__________

Philadelphia, P a.

Portland, M a in e

First 3 m onths-__________
4-12 months......... ............. After 1 year____ __
Interurban___ ___

1-man-cars and busses:

1-man cars, trackless trolleys,

and busses:
First year
_______
Second year__ __________
After 2 years.. _________

1-man cars and busses:

Providence, R . I.

Peoria, III.

1-man cars:

June 1,
1940

Portland, Oreg.

Oklahoma City, Okla.

1-man cars and busses:
__. _
First 6 months

1-man cars and busses..

June 1,
1941

June 1,
1940

Busses_______ _____________
S a n Francisco, Calif.

2-man cars:
First 6 m onths__

______
7-12 m onths.. _______ . . .
13-18 m onths________ ...
19-30 m onths________ ..
After 30 m onths.. ______
Cable cars:
Gripmen and conductors...

Monthly Labor Review—February 1942

486

T able 4. — Union Rates of Wages of Street-Railway Employees, June 1, 1941, and

June 1, 1940, by Cities— Continued
Rates of wages
per hour

Rates of wages
per hour
City and classification

City and classification
June 1,
1941

June L,
1941

June 1,
1940

S a n Francisco, Calif. —Con.

Toledo, Ohio

Busses:
First 6 months _ . _
11$0. 725
u. 750
7-12 months _________
13-18 months
_____
u. 775
19-30 months____________
ii. 800
u. 825
After 30 months____ ____

$0- 700
.725
.750
.775
.800

1-man cars and busses:
First 6 m onths____ _ _ _

7-12 months____ . . . ___
After 1 year __ . ___ .

First 3 m onths._ ___ 4-12 months___ _________
After 1 year........... ........... .

.640
.690
.720

.630
.680
.710

First 3 months ________
4-12 months_____________
After 1 vear
. . _____
1-man cars and busses:
First 3 months_____ ___
4-12 m onths.. . . . __ _ _
After 1 year_____________

.650
.675
.700

.650
.650
.650

1-man cars and busses:

South B end, In d .

Busses:
First vear______ ____ ...
Second year__________ ...
After 2 years__ _______

$0 670
.690
.720

12. 660
I0. 700
14. 720

.630
.670
.690

is. 730
i0. 770
11. 790

.700
.740
.760

.710
.700
.810

.660
.710
.760

Worcester, M a ss.

Spokane, W ash.

Busses:
First year. . .
____ _
Second and third years
After 3 y e a rs_________ .

$0. 740
.760
.790

W ashington, I). C.

2-man cars:

Scranton, P a .

1-man cars and busses:

June 1,
1940

First 3 m onths_________ .
4-12 m onths... . _____ _ _
After 1 year _____ . . . ...
Y ork, P a .

.600

Busses:
First 6 m onths___ . . .
7-12 months____________
After 1 year. _ __________

.640

.680

.600
.650
.700

Springfield, M a ss.
Y oungstoicn, Ohio

1-man cars and busses:

First 3 m onths. _
4-12 months.
After 1 y ear.. ___ _____

.720
.770
.810

11 Increase of 2H cents per hour July 1, 1941.
12 68 cents per hour July 1, 1941.

u 72 cents
14 76 cents
15 77 cents
10 81 cents
n 85 cents

per hour July
per hour July
per hour July
per hour July
per hour July


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Federal Reserve Bank of St. Louis

1, 1941.
1, 1941.

1, 1941.

1, 1941.
1,1941.

.640
. 690
.730

Busses:
First 3 m onths. ____ _ .
4-12 m onths______
. .
After 1 year__
______

.700
.750
.800

.650
.700
.750

Wage and Hour Statistics

487

W A G E S A N D H O U R S O F U N IO N M O T O R T R U C K
D R I V E R S A N D H E L P E R S , J U N E 1, 1 9 4 1 1

THE average hourly wage rate of union motortruck drivers in 75
cities was 82.9 cents on June 1, 1941. Union helpers averaged 68.6
cents and the average for the combined truck driver and helper occu­
pations was 80.8 cents. Based on comparable quotations for both
June 1, 1940, and June 1, 1941, the general level of hourly rates ad­
vanced 3.8 percent for drivers, 5.0 percent for helpers, and 4.0 percent
for the combined groups. Actual rates for drivers ranged from 30
cents for special-delivery milk drivers in Norfolk to $2.00 per hour for
operators of dump trucks of over 8 cubic feet capacity in St. Louis.
Helpers had a range in rates between 27.8 cents for some of the
helpers on furniture trucks in Birmingham to $1,125 for helpers on
theatrical-equipment trucks in New York City.
The above averages cover city trucking primarily, although overthe-road drivers were also included when they were paid on an hourly,
rather than a mileage, basis. The survey included 2,587 wage
quotations covering 241,608 union members. The term “ truck
drivers” covers a heterogeneous group of occupations, such as drivers
of building and excavating trucks, coal trucks, ice trucks, general
hauling and transfer trucks, delivery trucks hauling various and mis­
cellaneous commodities, and express and freight trucks. In each of
the many classifications of hauling, different types and sizes of trucks
are likely to be used. Each truck-driving occupation and each size
and type of truck usually has a different wage rate. Furthermore,
there is great variation among the different cities, not only in respect
to the commodities handled under union agreements, but also in
respect to the types of trucks and the terminology used to describe
the different occupations. For these reasons it is impossible to make
an intercity classification by types. The data on all truck driving
in all cities studied, therefore, are treated as for one trade in this
study, division being made only between drivers and helpers.
Wage payments for drivers doing local hauling, or making local
deliveries which do not involve sales functions, are almost universally
established on a time basis. Most frequently the agreements specify
hourly rates, although daily or weekly wage scales are not uncommon.
In order to achieve comparability, these daily and weekly wage scales
have been converted to an hourly basis whenever the agreements
specified the number of hours for which the scales applied. Some
trucking agreements, although specifying wage scales on an hourly,
daily, or weekly basis, do not specify the number of hours that shall
1 Prepared by Kermit B. Mohn, under the direction of Florence Peterson, chief of the Bureau’s Industrial
Relations Division.


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Federal Reserve Bank of St. Louis

488

Monthly Labor Review—February 1942

constitute full time. Quotations of this type consequently have been
omitted in the computation of average full-time hours and in the table
showing the distribution according to hours per week. When the
wage rates were given on an hourly basis these quotations have been
included in all rate computations, but when the specified wage scale
could not be converted to an hourly basis they have been excluded.
Agreements covering route drivers, particularly those handling
bakery products, beer, laundry, and milk, commonly classify the
drivers as salesmen. Ordinarily, the compensation of these drivers
is specified as a weekly guaranty plus various commissions based upon
the volume of deliveries or collections. Similarly, the agreements
covering road drivers commonly specify either trip or mileage rates
rather than hourly wage scales. All quotations specifying such com­
mission, trip, or mileage wage scales, which could not be converted to
an hourly basis, have been excluded from the computations upon
which this report is based.
Distribution of Members According to Hourly Wage Rates
Over 43 percent of the union truck drivers had hourly rates between
75 and 90 cents; 61 percent had rates in the wider range of 70 to 95
cents. Those drivers receiving $1.00 or more per hour included 18.6
percent of the total, while only 15.9 percent had rates that were less
than 70 cents per hour.
A substantial majority (57.3 percent) of the helpers had hourly rates
of 60 cents but less than 80 cents. Only 2.6 percent were receiving as
much as $1.00 per hour, with none higher than $1,125; more than half
(54.3 percent) had rates less than 70 cents per hour.
T a b l e 1.—Percentage Distribution of Union Motortruck Drivers and Helpers, by Hourly

Wage Rates, June 1, 1941

Classified hourly rate

D riv­
ers and D riv­ Help­
ers
helpers ers

Average hourly rate__ ____ $0.808 $0. 829
Percent of members whose
rates were—
Under 40 cents_______
40 and under 45 cen ts...
45 and under 50 c en ts...
50 and under 55 cents...
55 and under 60 cents...
60 and under 65 cen ts...
65 and under 70 cen ts...
70 and under 75 cents...
75 and under 80 cents.. .

0.5
1.0
1.1

3.1
3.0
5.3
7.6
9.8
17.1

0.1

.9
.6

2.4
2.3
4.0
5.6
9.4
17.8

$0. 686

2.8
1.6

4.4
7.3

6.8

12.9
18.5
11.9
14.0

Classified hourly rate

Percent of members whose
rates were—
80 and under 85 cents...
85 and under 90 cents. _.
90 and under 95 cents...
95 cents and under $1. . _
$1 and under $1.05____
$1.05 and under $1.10__
$1.10 and under $1.15__
$1.15 and under $1.20...
$1.20 and under $1.25__
$1.25 and over___ ___

Driv­
ers and Driv­ Help­
ers
helpers ers

12.5
11.3
7.4
4.0
8.4
3.5
2.4
1.3
.3
.4

13.8

11.8
8.2

4.5
9.6
4. 1

2.6

1.5
.3
.5

5.2
7.9
2.9
1.2

1.5
.2

.9

Weekly Hours, 1941
The average full-time weekly hours in effect for union drivers was
47.2 on June 1, 1941, while helpers averaged 46.3 hours. The higher

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Federal Reserve Bank of St. Louis

DISTRIBUTION OF UNION MOTORTRUCK DRIVERS AND HELPERS
ACCORDING TO HOURLY WAGE RATES
JUNE

94

PERCENT OF MEMBERS

PERCENT OF MEMBERS

40

40
DRIVERS
HELPERS

30

30

20

20

10

UNDER

.40
ANO UNDER

$.40

.50

UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS


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0

1.20

.70

.80

.90

AND UNDER

AND UNDER

AND UNDER

AND UNDER

ANO

80

.90

1.00

1.20

OVER

HOURLY

WAGE RATE

490

Monthly Labor Review—February 1942

average for drivers resulted mainly from the fact that helpers were not
generally included in the quotations covering road drivers, whose
hours were usually longer.
The 48-hour week was most prevalent in the trucking industry, 41.9
percent of the drivers and 46.7 percent of the helpers being subject to
this workweek. Next in line was the 40-hour week, covering 17.2
percent of the drivers and 17.8 percent of the helpers. The 44-hour
weekranked third, with 11.8 percent and 15.5 percent of the respective
memberships being subject to it. Weeks longer than 48 hours were
worked by 22.6 percent of the drivers and 12.4 percent of the helpers.
However, very few had a weekly work schedule of more than 60
hours.
The effect of the Fair Labor Standards Act, at the time of this
study, in limiting straight-time working hours to 40 per week for
workers in interstate commerce, was reflected in a number of motor­
truck drivers’ agreements. The majority of the drivers, however, as
is indicated by the prevalence of hour scales in excess of 40 per week,
were considered either as working in strictly intrastate commerce, to
which the act does not apply, or were drivers of common, contract,
or private motor carriers engaged in transportation in interstate com­
merce, which are generally exempt from the overtime provisions of
the Fair Labor Standards Act. Drivers in the latter classification are
subject to the regulations of the Interstate Commerce Commission,
which has ruled that no employer of drivers operating vehicles in
interstate commerce may require drivers in its employ to remain on
duty for more than 60 hours in a period of 168 consecutive hours,
with the exception that carriers operating vehicles every day of the
week may permit drivers to remain on duty 70 hours in a period of
192 consecutive hours. Furthermore, drivers are limited to 10 hours’
aggregate driving in any period of 24 hours, unless they are off duty
8 consecutive hours during or immediately following this driving
period. An exception from the daily limitation is made in the event
of adverse weather conditions or unusually adverse road or traffic
conditions necessitating hours of driving in excess of 10, when drivers
may be permitted to operate vehicles up to 12 hours in any given day
or days, provided, however, that the extra 2 hours are necessary to
complete a trip.2
In a number of cases the 60-hour scales specified in the agreements
are basically a restatement of these ICC regulations. In a number
of the reports, particularly those showing 60 hours as the full-time
2 An essential difference between the hour regulations of the Interstate Commerce Commission and of
the Fair Labor Standards Act should be noted. Whereas the Interstate Commerce Commission regulations
specify maximum hours which may not be exceeded, the regulations under the Fair Labor Standards Act
merely specify the maximum hours that may be worked at straight-time rates, and do not limit the number
of total hours that may be worked, provided time and one-half is paid for all hours in excess of the specified
normal week.


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491

Wage and Hour Statistics

workweek, it was indicated that the hours specified in the agreement
merely constituted the maximum permitted at straight time, and
that frequently actual working hours were considerably less, depend­
ing upon the amount of work available.
T able

2.—Percentage Distribution of Union Motortruck Drivers and Helpers, by

Hours per Week, June 1, 1941

Hours per week

Average weekly hours — ----------Percent of members whose hours per
week were—
Less than 40_______________
40_________________________
Over 40 and under 44.. _ ---- —
44_________________________
Over 44 and under 48.. ------48_________________________
Over 48 and under 54-------- .
54_________________________
Over 54 and under 60------------60__________ _______________
Over 60 -------- ----------------- -

Drivers
and
helpers
47.1

0.8

17.3
1.0

12.4
4.9
42.6
9.3
6.2

1.4
3.9
.2

Drivers

Helpers

47.2

46.3

17.2

0.8

1.3
17.8

1.1
11.8

15.5

4.6
41.9
10.5
5.8
1.6

4.5
.2

.2

6.1

46.7
2.5
8.3
.7
.8

.1

Overtime Rates

Time and one-half was the most prevalent overtime rate in union
trucking agreements. Over three-fourths of the quotations for
drivers and helpers specified this penalty rate. These quotations
covered 65.8 percent of the drivers and 73.2 percent of the helpers.
The only other overtime rates which affected a substantial number of
members were those providing a fixed rate rather than a multiple of
the regular wage. This type of overtime rate covered 15.6 percent of
the drivers and 11.5 percent of the helpers. In 13.3 percent of the
driver quotations and 14.2 percent of the helpers no overtime rate was
specified, and in a few instances overtime was prohibited. Prohibi­
tions of overtime usually pertained to interstate over-the-road drivers
who were limited to 60 hours per week.
A great many of the trucking agreements specified that the overtime
rate should apply only on the basis of cumulative weekly hours and
not on a daily basis. A number also provided a daily or weekly
tolerance, whereby a limited amount of overtime could be worked with­
out payment of any penalty rate. This tolerance generally was not
over 6 hours per week.
A number of quotations covering drivers and helpers considered
subject to the Fair Labor Standards Act were modified to provide
that the straight-time weekly hours should be reduced to conform to
the law, but that each regular driver and helper should be guaranteed
sufficient overtime each week to equal the full working time specified
in the previous agreements. In some instances the hourly rate for

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Federal Reserve Bank of St. Louis

492

Mon thly Labor Review—February 1942

straight time was retained unchanged under the new schedule of hours,
which resulted in larger net weekly earnings for the members affected.
In other cases net earnings were increased by a combination of an
increase in the scale of wages and an increase in the number of guar­
anteed overtime hours.
T able 3. —Overtime Rates Provided for Motortruck Drivers and Helpers in Union

Agreements, June 1, 1941
Drivers and helpers
Overtime rate

No penalty rate provided _____
_ .
Time and one-third.
Time and one-half.. . . .
Double t i m e ___ . . .
Fixed penalty scales L . _____________
Overtime prohibited_____________

Drivers

Helpers

Number Percent
Number Percent
Number Percent
of
of
of
of quo­ members
of quo­
of quo­
tations affected tations members tations members
affected
affected
348
42
1, 989
14
163
27

13.7
3.4
66.9
.4
15.0

279
28

14.1
3.4
65.8
.4
15.6
.7

1, 610

9
146
26

.6

69
14
379
5
17

11. 5
35
73. 2
Q
11 5
(2)

1

1 Not a multiple of regular rate.
2 Less than a tenth of 1 percent.

Trend of Wage and Hour Scales
Data based on comparable quotations for the trucking industry are
available only for the past 5 years. Since 1936 the movement of wage
rates has been consistently upward and that of allowed weekly hours
has been generally downward.
Union hourly wage rates for drivers increased 3.8 percent, on the
average, between June 1, 1940, and June 1, 1941. Helpers recorded
a 5.0 percent increase, and for the combined classifications the advance
amounted to 4.0 percent. These increases were the largest since a
comparable period in 1936-37.
Full-time hours for drivers and helpers, on the average, decreased
0.7 percent during the year ending June 1, 1941. A great number of
the reductions in hour scales were from 42 to 40 in order to comply
with the Fair Labor Standards Act, requiring a 40-hour week after
October 24, 1940.
T able 4.—Percent of Change in Union Hourly Wage Rates and Weekly Hours for

Motortruck Drivers and Helpers, 1936 to 1941
Drivers and helpers
Year

1936 to
1937 to
1938 to
1939 to
1940 to

1937_______
1938_____
1939_____ _
1940____
1941_______

1 Not available.


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Hourly
wage
rates

Weekly
hours

+ 6.6
+3.6
+ 2.2
+ 2.0
+4.0

—0.9
0

—.9
—.9
—.7

Drivers
Hourly
wage
rates
0)

+3.6
+ 2.2
+ 2.1
+3.8

Helpers

Weekly
hours

Hourly
wage
rates

Weekly
hours

(>)

0)

(>)

0

—0.8
—.8

—.7

+3.5
+ 2.6
+ 2.0
+5.0

0

—1.2
—1.3

493

Wage and Hour Statistics

Changes Between 1940 and 1941
Wage rates.—A substantial majority of the organized truck drivers
and helpers received increases in hourly wage rates during the year
ending June 1, 1941. A slightly larger proportion of the helpers
(59.3 percent) received raises than did the drivers (54.6 percent).
Reductions in scales were reported for only 1.1 percent of the drivers
and 2.5 percent of the helpers.
T able 5.—Number of Changes in Union Rates of Motortruck Drivers and Helpers, and

Percent of Members Affected, June 1, 1941, as Compared with June 1, 1940

Type of change

Helpers

Drivers

Drivers and helpers

of Number of Percent of Number of Percent of
Number of Percent
quotations members
quotations members
quotations members
affected
affected
affected
1,156
31
1,025

Increase-- . _______ _____
D ecrease____ _____ ___
No change________________

55.3
1.3
43.4

926
26
836

54.6
1.1

44.3

59.3
2.5
38.2

230
5
189

Of the total number of drivers receiving increases during the year
(54.6 percent), over three-fourths had their rates raised by less than
10 percent. Increases of at least 5 percent but less than 10 percent
were most common among truck drivers (23.3 percent of the member­
ship). However, increases of less than 5 percent were also quite
prevalent (19.4 percent). Only 11.9 percent of all drivers included
in the survey received advances of at least 10 percent over their
previous rates, most of these being less than 15 percent.
T able 6. —Number and Percent of Increases in Rates of Motortruck Drivers and Helpers,

and Percent of Members Affected, June 1, 1941, as Compared with June 1, 1940
Drivers and helpers
Amount of increase

Helpers

Drivers

of Number of Percent of Number of Percent of
Number of Percent
quotations members
quotations members
quotations members
affected
affected
affected

Less than 5 percent___
5 and under 10 percent-_
10 and under 15 percent15 and under 20 percent.
20 and under 25 percent.
25 and under 30 percent.
30 and under 35 percent.
35 and under 40 percent.
40 percent and over___

294
506
206
65
48
16

17.7
24.1
9.9
1.6

.9
.4

10

.2

8

.3

251
400
162
50
36

19.4
23.3
8.8
1.6

43
106
44
15

9
3
5

.2
.2
.1

3

10

.7
.3

12
6
1

7.8
30.0
16.1
1.7
1.7
.8
(>)
1.2

1 Less than a tenth of 1 percent.

The helpers, on the other hand, had 63.7 percent of the number
receiving increases, or 37.8 percent of the total membership benefiting
by raises of less than 10 percent. Increases of less than 5 percent
covered 7.8 percent of the membership, and 30 percent had their 1940

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Federal Reserve Bank of St. Louis

494

Monthly Labor Review—February 1942

scales advanced by between 5 percent and 10 percent. The latter
group comprised a slight majority of the total number of helpers
•receiving increases during the year. An additional 16.1 percent had
their rates raised by between 10 percent and 15 percent, and 5.4
percent received advances of 15 percent or more.
M a x im u m w e e k ly h o u r s — More than 16 percent of the quotations
covering drivers reported a reduction in straight-time working hours
during the past year. These changes affected 11.3 percent of the
organized drivers. Among helpers, decreases in maximum weekly
hours were listed in 17.3 percent of the quotations covering 12.1
percent of the members. A great number of reductions in hours
were from 42 to 40 in order to comply with the Fair Labor Standards
Act. Slightly more than 87 percent of the members in both classi­
fications retained their 1940 working schedules.
T able 7.—Number of Changes in Union Hours of Motortruck Drivers and Helpers,

and Percent of Members Affected, June 1, 1941, as Compared with June 1, 1940
Drivers and helpers
Type of change

Increase____
Decrease- ____ .
No change___

Drivers

Helpers

of Number of Percent of
Number of Percent
Number of Percent of
quotations members
quotations members
quotations members
affected
affected
affected
42
356
1,774

1.4
11.4
87.2

40
284
1,432

1. 5
11.3
87.2

2

72
342

0 6
12 1

87.3

Average Rates by City
Table 8 shows the averages for the combined driver and helper
occupations in each city included in the survey. Sufficient quotations
to compute an average were not obtained in two cities, Charleston,
S. C., and Jackson, Miss. In four others, Charlotte, N. C., El Paso,
Tex., and Memphis and Nashville, Tenn., no helper scales were listed,
and therefore the averages shown cover drivers only. In all other
cities the average shown is a composite of drivers and helpers, each
rate being weighted by the number of union members covered by it.
New York City had the highest rates, on the average, the composite
amounting to 97.7 cents per hour. Its neighboring city, Newark, was
next in line with an average of 95.0 cents. Butte and Seattle also had
average rates of over 90 cents (94.5 and 92.7 cents, respectively).
Eight additional cities had higher averages than the 80.8 cents average
for all cities: Los Angeles (88.7 cents), San Francisco (88.6 cents),
Spokane (87.3 cents), Portland, Oreg. (86.6 cents), Cleveland (85.4
cents), Detroit (83.7 cents), Chicago (82.4 cents), and Pittsburgh
(81.8 cents). Twenty cities had average rates between 70 and 80
cents; 25 between 60 and 70 cents; 11 between 50 and 60 cents, and
only 3 under 50 cents. San Antonio had the lowest average (46.4
cents).

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495

Wage and Hour Statistics

T a b l e 8. —Average Hourly Rates of Union Motortruck Drivers and Helpers, by City,

June 1, 1941 1

City

New York, N. Y _____
Newark, N. J ________
Butte, M ont____ ____Seattle, Wash________
Los Angeles, Calif--.
San Francisco,'Calif___
Spokane, Wash
Portland, Oreg__ - . . .
Cleveland, Ohio------ Detroit, M ich_____
Chicago, 111__________
Pittsburgh, P a____ ---

Average
hourly
rate
$0.977
.950
.945
.927
.887
.886

.873

.866

.854
.837
.824
.818

Average for all cities

.808

Philadelphia, Pa._____
Boston, Mass. ______
Phoenix, Ariz________
Milwaukee, W i s _____
St. Paul, M inn_______
Toledo, Ohio. .
New Haven, Conn____
Indianapolis, In d _____
Buffalo, N. Y ________
Cincinnati, Ohio______
Rock Island (111.) distr ic t2-.- ----------- ---

.746

.789
.785
.784
.770
.766
.759
.758
.756
.749
.749

City

Springfield, Mass-------Peoria, 111___________
Minneapolis, M inn___
South Bend, In d ______
Scranton, P a_________
St. Louis, M o__
___
Dayton, Ohio________
Worcester, Mass______
Rochester, N. Y_-_ _
Providence, R. I ______
Youngstown, Ohio____
Washington, D. C_ ____
Erie, P a _____________
Reading, P a. ________
Little Rock, A rk_____
Duluth, M inn________
Charleston, W. Va____
Kansas City, M o_____
Portland, M aine______
Grand Rapids, M ic h ...
York, P a____________
Denver, Colo________
Baltimore, Md _____
Columbus, Ohio. ____
Louisville, K y________

Average
hourly
rate
$0. 737
.732
.730
.727
.723
.717
.711
.710
.704
.699
.694
.690
.688

.687
.673
.671
.662
.660
.655
.653
.651
.650
.649
.646
.642

1 Does not include drivers paid on a commission or mileage basis.
number receiving each different rate.
2 Includes Davenport, Iowa, Moline, 111., and Rock Island, 111.
3 No helpers included in average.

City

Average
hourly
rate

$0.640
Madison, Wis _____
.638
Birmingham, Ala. - ___
.634
Salt Lake City, U tah--.631
Des Moines, Iowa.........627
M anchester, N. H
_. _
.624
Oklahoma City, Okla __
El Paso, Tex_______
3.617
.615
Binghamton, N. Y
.610
Jacksonville, Fla-.
3. 597
Memphis, T enn______
.588
Omaha, Nebr______
.558
Houston, Tex---- ------.544
Mobile, Ala__________
3. 539
Charlotte, N. C ______
3.533
Nashville, Tenn- ___
.526
Tampa, Fla__________
.522
Norfolk, Va__________
.510
Richmond, Va . , ____
.507
New Orleans, La ------.501
Atlanta, Ga_______ -. 491
Dallas, Tex-------- ------.476
Wichita, Kans________
.464
San Antonio, Tex_____

Averages are weighted according to

WAGE-RATE CHANGES IN UNITED STATES
INDUSTRIES
THE following table gives information concerning wage-rate adjust­
ments occurring during the month ending November 15, 1941, as
shown by reports received from manufacturing and nonmanufactur­
ing establishments which supply employment data to the Bureau of
Labor Statistics.
As the Bureau’s survey does not cover all establishments in an
industry and, furthermore, as some firms may have failed to report
wage-rate changes these figures should not be construed as represent­
ing the total number of wage changes occurring in manufacturing and
nonmanufacturing industries.


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Federal Reserve Bank of St. Louis

496

Monthly Labor Review—February 1942

Wage-Rate Changes Reported by Manufacturing and Nonmanufacturing Establishments
During Month Ending November 15, 1941 1
Establishments

Group and industry

­
Total Num
ber
num­
report­
ber
ing in­
coverec creases

All manufacturing____________________ _______ ____ ___ 33,678
Durable goods____________________________________ 12,631
Nondurable goods_______ ________________________ 21,047

Employees

Total
number
covered

Average
percentage
change
in
wage
N um ­
rates of
ber
employ­
report­
ees
ing in­
creases having
in­
creases

8.0

630 7,801, 794
322 4,352,342
303 3,449,452

173, 900
98,086
75,814

9.1
6.5

48 1,115, 536
7 563, 289
3
20, 320
3
49, 319
4
27,184
6 50, 304

14, 665
7,984
316
769
329
675

6.3
7.3
6.9
15.2

21, 879
28, 894
22,119

347
964
217

9.5

94 1,260, 687
10 340,180
413, 322
11 100, 432
5
24, 692
3
19, 726

25, 582
3,113
11, 852
1, 435
3,337
516
30, 614
24, 664
4,472

12.1
12.8

7,697

8.3
6.5
8.5

Iron and steel and their products, not including machinery.
Blast furnaces, steel works, and rolling mills-,_______
Forgings, iron and steel___________________________
Hardware________ ____ __________________________
Plumbers’ supplies___________________...__________
Stamped and enameled ware___________
Tools (not including edge tools, machine tools, flies,
and saws)______________________________________
Wire work____________ ____ ______________________
Screw-machine products________ __________________

2,575
307
97
154
108
246
132
173
83

4

Machinery, not including transportation equipment______
Electrical machinery, apparatus, and supplies______
Foundry and machine-shop products__________
Machine tools_______________________________
Textile machinery and parts________ _____
Machine-tool accessories__________________ ________

3,857
610
2,257

200
123
110

55

Transportation equipment__________________________
Aircraft__________________________________Z..ZZZZZ"
Automobiles____________________________ ZZZZZZZZZZ

855
119
402

16 1,126, 608
4 280, 505
8 482, 746

3

6

6.9

6.2

5.9

6.1

6.8
7.7
8.0

5.1
9.8
12.4

8.9

Nonferrous metals and their products........ .............................
Brass, bronze, and copper p r o d u cts,,,,_________ ;___
Smelting and refining—copper, lead, and zinc___
Sheet-metal work______________________________ _

1,095
352
57
137

29
5
14
3

258, 644
101, 066
32, 896
7,328

6,294
236

10.6

Lumber and allied products___________________
Furniture_________________________
Lumber:
M illwork______________________________ _
Sawmills_____________________ Z_ZZZ.ZZZZZZZZZZZ
"""
Caskets and morticians goods___ ,___.........
Wood, turned and shaped___________ 11111111111111
Wooden boxes, other than cigar____________________

2, 697
723

105
25

353, 789
118, 987

16, 869
4,387

9.8
8.9

546
671

13
33
5
7
13

41, 043
126, 447
6,049
7,013
12,971

2,617
4,379
98
678
2,496

Stone, clay, and glass products_________________________
Brick, tile, and terra cotta_____ ,_____
_
"
Glass_____ ________________________________Zgfgj
Marble, granite, slate, and other products_______

1,552
518
150
245

30

237,078
48, 599
76, 450
6,196

2,659
406
1,095
167

Textiles and their products.,._____
Fabrics________________ ___________ __ ZZZZZ"
Cotton goods.__________
I_Z”ZrZZIIZIHII-I
Cotton small wares_____ ■_<._________ZZIIZZZZIZZZ
........
Dyeing and finishing textiles____ *
Hosiery________________________________ _
Silk and rayon goods________________ ZZZZZZZZZZZ
Woolen and worsted goods__________
"
~
Cordage and tw ine________ Z______
Wearing apparel____ ______
Z.ZZZZZZZZ"
Clothing, men’s ________________ ZZZZZZZZZZZZZZZZ

6, 831

483
470
412
58
3,142
1,133

91 1,426,236
84 1, 067, 592
38 438,471
5
16, 223
4
58, 525
7
113, 682
6 74,488
6 169,
723
3
14,924
7 358, 644
5
156,415

49,004
48, 565
38,691
979
1,082
1,049
2,461
1, 661
239
439
146

7.1
6.4
2.4
16.0
17.7

Leather and its manufactures__________________________
Boots and shoes........ ..................
Leather___________________ ZZZZZZZZZZZZZZZZZZZZZZZZ
Boot and shoe cut stock and findings_________Z.ZZZZZ

1,141
507
171
123

2,158
1,153
671
147

7.0
6.9
7.4
11.3

Food and kindred products____________
Baking...............................................ZZZZZZZZZZZZZZZ.ZZ
Canning and preserving________________ ___
C o n fe c tio n er y _______________ Z.ZZZ
Slaughtering and meat packing.ZZZZZZZZZ Z
Feeds, prepared_____ _______________

5,258

102
88

129

3,689
792
129

221

8

4
9

20
8
6
5

246,048
169, 018
40,257
9,744

201

8.2
8.0

11.3
7.9
9.5

8.7
8.5

10.8
3.4

5.9
5.8
5.5

10.0
5.5
8.2

55
539,531
6,815
9.8
1,011
16
82,468
2,341
10.2
1, 069
3
102,493
490
14.3
277
5
47, 027
1,027
10.3
316
9
130, 004
980
5.8
104
3
4,041
39
14.1
' Figures are not given for some industries to avoid disclosure of information concerning individual estab­
lishments. th e y are, however, included where practicable in “all manufacturing,” and in the various
industry groups. No decreases were reported.


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Federal Reserve Bank of St. Louis

497

Wage and Hour Statistics

Wage-Rate Changes Reported by Manufacturing and Nonmanufacturing Establishments
During Month Ending November 15, 1941—Continued
Establishments

Average
percent­
age
change
in
wage
Num ­ rates
of
ber
employ­
report­
ees
ing in­ having
creases
in­
creases

Employees

Total
Dum­
ber
covered

Num ­
ber
report­
ing in­
creases

Paper and printing--------------------------- Boxes, paper------------------------------Paper and pulp----------------- --------Printing and publishing:
Book and job-----------------------Newspapers and periodicals-----

3, 948
655
437

67
10

415, 888
54, 696
143,389

6, 923
801
4,434

7.0
9.4
7.2

1, 525
725

20

83, 034
64, 935

619
977

5.4
5.5

Chemical, petroleum, and coal products.
Chemicals—............... .......................
Druggists preparations........ ...........—
Explosives.........—-------- ---------------Paints and varnishes-------------------Petroleum refining_______________
S o a p ...---------- --------------------------Compressed and liquefied gases.......

2,281
236
90
43
505
179
83
76

56

396,403
81, 544
16, 064
22,406
24, 549
77,118
17,408
2,653

8, 033

6.2
6.2

Group and industry

Rubber products...............- .............. - ........
M iscellaneous,----- ------------.--------------Instruments—professional, scientific, and commercial
All nonmanufacturing (except building construction)
Bituminous coal mining------------------ ------------Metalliferous mining...... ..................— ...................
Quarrying and nonmetallic mining----------------Crude-petroleum production............ ................ —
Public utilities:
Telephone and telegraph_______ ________ _
Natural gas--------------- ---------------------------Electric light and power-------------------------Manufactured gas--------- ----- -------------------Street railways and busses----------------------Wholesale trade..................................- ......................
Retail tr a d e .,.............................. - ......................... .
Hotels (year-round)_______________________ -,
Laundries..................................- ...............................D yeing and cleaning................................................
2

17
16
8

3
3

12

7
5
4

Total
number
covered

789

122

357
1,085
665
1,174
84

5.8
11.3
8.1

7.5
7.0
4.6
9.1

265

6

146,443

1,792

1,095

11

203,209
31, 280

881

5.7

102

10.0

1,570 3,163, 000
7 263, 200
79, 600
20
42,900
13
40,100
16

75,833
554
9,034
933
2, 293

7.2
5.9
4.8
6.4
5.6

16, 548
‘ 936
23,966
782
3,249
5,047
11,144
147
1, 002
198

9.9
5.1

68
2 92,970
2 1, 100
2 390
2 1, 090
2 480

9,670

2 690
2 2, 760
2 160
2 350
2 15,130
2 52,890
2 1,930
2 1, 270
2 840

4

903
3
68

3
9
186
324
6

9
3

339,000
27,600
244,100
34, 300
134,400
364,300
1,134,900
145, 800
86, 700
18, 900

6.8

7. 0
7.8
6.4

6.6

10. 1
11.9
8.7

Approximate—based on previous month’s sample.

SALARIES IN COLLEGES AND UNIVERSITIES, 1939-40
SALARIES of faculty members in colleges and universities of the
United States vary widely among different types of institutions and
also as between large and small institutions of the same type, according
to a report published by the United States Office of Education.1 For
example, in 1939-40 the median salaries of professors on a 9-month
basis in 12 large State teachers colleges averaged $3,244, as compared
with $4,952 in 5 large land-grant institutions. In 5 of the smallest
land-grant institutions, the average was $2,594, and in 25 small State
teachers colleges, $2,931. Data were obtained for 17 white and 17
Negro land-grant institutions in 17 Southern States. In the white
1 United States Office of Education.


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Circular No. 196: College Salaries, 1939-40.

498

Monthly Labor Review—February 1942

institutions, professors on a 9-month basis averaged $3,658, and in the
Negro institutions, $1,821. Similar differences prevailed among other
types of institutions and teaching positions.
Table 1 shows median salaries in four occupation groups, on both
a 9-month and a 12-month basis, in the colleges and universities
covered by the survey. Information is presented separately for the
69 publicly controlled land-grant institutions in the United States,
which include some of the largest colleges and universities. A landgrant institution is a college or university that has been designated,
by the legislature of the State in which it is located, to receive benefits
under the Federal Morrill Act of 1862, which provided for a Federal
grant of land, or its equivalent in scrip, to each State for the support
of such an institution.
T a b l e 1. —Median Salaries of Full-Time Faculty Members in 305 Colleges and

Universities in the United States, 1939-40

Institutions

pro­ Assistant pro­ Instructors, on
on Associate
Num ­ Professors,
fessors, on
fessors, on
basis of—
basis of—
ber of
basis of—
basis of—
institutions
9
12
9
12
9
12
9
12
months months months months months months months months

P ublicly controlled institutions

White land-grant institutionsLargest land-grant institu­
tions-. ....___________
Smallest land-grant insti­
tutions.. __
____
White land-grant institu­
tions in 17 Southern
States____ _________
Negro land-grant institutions
in 17 Southern States______
_____
State universities . .
State colleges_____
. ___
Small State teachers colleges...
Medium State teachers col­
leges------------ ------- ---Large State teachers colleges...

1 52

$4, 245

$4,201

$3,272

$3,233

$2, 605

$2, 760

$1, 937

$2,058

5

4, 952

5,219

3,627

3,841

3,021

3,132

2,210

2,252

5

2,594

3,271

2,000

2,664

1,701

2,437

1,642

1,938

17

3, 658

3, 903

2,926

2,975

2,352

2,484

1,840

1,886

17
16
15
25

1,821
3,890
3,179
2,931

2,078
4, 750
3, 077
2, 958

1,701
3,027
2,579
2,547

1,868

4,013
2, 738
2,266

1,560
2,432
2,135
2,043

1,628
3,028
2,133

1,293
1,908
1,662

2,201

1,668

1,269
1,738
1,817
1,017

15

12

3, 538
3,244

3, 524
3, 529

2,982
2, 579

2,815
2, 721

2, 570
2,337

2, 357
2, 514

2,167
2,063

2,038
2,135

16
38
7
16
76

3, 239
3,052
5,117
4, 320
1,788

4,602
3,548
5,631
4,950

3,156
2, 756
3, 625
3, 389
1,810

3, 434
3, 023
3,893
3,500
2,063

2,625
2,484
2,946
2,644

2,778
2,355
3,199
3,167
1,763

2,069
1,747
2,064
1,841
1,108

2,067
1,833
2,247
2,178
1,392

Privately controlled institutions

M en’s colleges_________ _
Women’s colleges_. _______
Large universities_____ ___
Medium universities__
Small colleges___________

2,102

1,688

1 The total of 52 includes other land-grant institutions than the 3 enumerated thereunder.

Fifty-one land-grant institutions reported on salaries in the same
manner for 8 different years within the period, 1928 to 1940. For
the last year, 1939-40, one additional institution reported. Data for
four occupations, taken from the summary of these reports by the
Office of Education, are given in table 2.


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499

Wage and Hour Statistics
T able 2.-—Median Salaries of Full-Time Faculty Members in 51 Land-tyrant

Institutions, 1928—4 0 1
Professors, on
basis of—

Associate profes­ Assistant profes­
sors, on basis of— sors, on basis of—

Instructors, on
basis of—

Year
9
11-12
9
11-12
9
11-12
9
months months months months months months months
1928-29
1929-30
1930-31
1934-35
19351936-37
1937-38
1939-40

. __________
- _________
- - _________
_________ _
36____________
____________
___________
_____ ---

$4,278
4,457
4, 513
3, 775
3,951
4,166
4,163
4,245

$4,161
4, 335
4,293
3, 683
3,869
3,805
4,057
4,201

$3, 342
3,349
3, 362
2,903
2, 973
3,144
3,189
3, 272

$3, 207
3,395
3,414
2,906
3,017
3,032
3.175
3, 233

$2, 738
2,818
2, 837
2, 449
2,486
2, 556
2, 592
2,605

$2, 880
2,936
2,957
2, 516
2, 574
2,623
2, 750
2, 760

$2,047
2,060
2,060
1,769
1,792
1,842
1,892
1,937

11-12

months
$2,134
2, 208
2,168
1,960
2,012

2,038
2,106
2,058

1 Salaries in 52 institutions are given for 1939-40.

WEEKLY EARNINGS IN GREAT BRITAIN AND
NORTHERN IRELAND IN 19411
WORKERS engaged in manufacturing and in some of the principal
nonmanufacturing industries of Great Britain and Northern Ireland
in the week ended July 12, 1941, had average weekly earnings of 75s.
5d.2—an advance of 42 percent over the last pay week of October 1938,
the date of the last pre-war inquiry. For men 21 years of age and
over, the increase was 43 percent, bringing their average earnings to
99s. 3d. Weekly earnings of youths and boys rose 57 percent, to
40s. 7d.; those of women 18 years of age and over, 36 percent, to
44s. 4d.; and for girls the rise amounted to 35 percent, bringing their
earnings to 25s. 2d.
The upward movement in earnings from 1938 to 1941 reflects the
combined effect of wage-rate rises; fuller employment with longer
working hours and more extended use of night shifts; extension of
systems of wage payments by results; and changes in the proportions
of men, boys, women, and girls employed in different industries and
occupations. From information available to the Ministry of Labor
and National Service it is estimated that wage rates for-a full-time
week, exclusive of overtime pay, rose about 18 percent. The differ­
ence between this figure and the 42-percent increase shown in actual
weekly earnings reflects the net effects of the other factors mentioned.
In surveying the level of workers’ earnings in 1941, the Ministry of
Labor and National Service sent inquiries to all employers who had
supplied wage information for October 1938 and July 1940,3 and also
to a number of establishments (chiefly in the engineering and -allied
1 Data are from Great Britain, Ministry of Labor Gazette (London), November 1941.
2

A verage exchange ra te of p o u n d (20 shillings) in J u ly , 1941=$4.04.

3 For summaries of the earlier returns, see Monthly Labor Review for February (p. 455) and Marc i

(p. 716) 1941.
438471— 42-------15


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500

Monthly Labor Review—February 1942

industries) which were not in operation on the earlier dates. Coverage
was restricted to wage earners at work in the specified week, other
than office staffs, shop assistants, and home workers. Foremen,
transport workers, warehousemen, etc., were to be included, but
managers, commercial travelers, clerks and typists, and salaried
persons generally were excluded. The wages shown represent total
earnings (including bonuses) before any deductions were made for
workers’ contributions to statutory insurance schemes, such as health,
pensions, and unemployment.
Forms were sent to approximately 57,400 establishments in con­
nection with the 1941 study. Of this total, some 56,600 furnished
returns that were suitable for tabulation. Data were obtained for
over 6,000,000 wage earners of all grades of skill.
Although the average earnings of all workers rose 42 percent from
1938 to 1941, variations were great among the different industries.
Among the 16 main industrial groups for which information is given,
the range in the increases was from 18 percent in the paper and printing
group and 20 percent in public-utility services to 48 percent in building
and contracting and 49 percent in the metal, engineering, and ship­
building industries. In comparing the changes for all workers com­
bined, it is pointed out by the Ministry of Labor that earnings are
affected to some extent by changes that have taken place during the
war in the relative proportions of men, boys, women, and girls em­
ployed. In most cases the proportion of men has declined while
that of women lias increased.
Over the year, July 1940-July 1941, average earnings of all workers
combined rose 9 percent. The variations were from 12 percent for
men to 16 percent for youths and boys. However, as the 1940 figures
by age and sex included only 80 percent of the total number of work­
ers, as compared with 95 percent covered by the figures for all workers
combined, “ the averages shown for men, boys, women, and girls at
those two dates rest on a less comparable basis than those relating to
‘all workers’ combined.” The report under review also points out
that in July 1940, many munitions plants were speeding output and
very long hours were worked, sometimes 7 days a week. In July 1941,
hours of work in munitions industries were considerably in excess of
the comparatively normal schedule of October 1938, but were shorter
on the whole than in July 1940.
The following table shows comparisons of average weekly earnings
of men and of all workers (including men, youths, women, and girls)
in the week ended July 12, 1941, and the percentage changes in these
earnings from the last pay week in October 1938 to the 1941 pay period.


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501

Wage and Hour Statistics

Average Earnings in Great Britain and Northern Ireland, Week Ended July 12, 1941,
and Percent of Increase Over October 1938
Average weekly earn­
ings, week ended July
12, 1941

Percent of increase over
last pay week in Oc­
tober 1938

Industry
All work­
ers 4

Men only
(21 and
over)

s.

s.

d.

All industries 2------------ ------------------------------------

75

5

99

Iron, stone, etc., mining and quarrying------------------Treatment of nonmetalliferous mining products-----Brick, pottery, and glass industries------ --------------Chemical, paint, oil, etc., industries---------------------Metal, engineering, and shipbuilding i n d u s t r i e s —

78 4
85 0
64 10
75 1

84
94

Leather, leather goods, and fur industries--------------Clothing industries------------------------------------------Food, drink, and tobacco industries---------------------Woodworking industries-----------------------------------Paper, printing, etc., industries-—- —------ -----------Building and contracting, etc-----------------------------Miscellaneous manufacturing industries----------------Transport, storage, etc------------------------------- ------Public-utility services.------—-----------------------------Government industrial establishments 4----------- -----

88

8

52 0
62 10
45 6
60 7
68 9
65 4
90 5
66 11

84
71
89

9
5
5

88

97
111
81

d.

All work­
ers 1

Men only
(21 and
over)

3

42.3

43.0

7

38.8
38.2
35.8
35.7
49.2
2 37.7
31.4
27.9
29.4
31.4
17.9
47.6
40.6
25.6

40.4
41.9
40.2
41.5
48.7
3 42. 5
34.5
30.5
33.0
31.5
15.9
46.3
45.3
29.8
23.0
47.3

6

7
9
5

86

8
6

110

10

84 11
87 8
87 8
96 7
96 8
101 3
92 8
77 6

20.2

26.8

1 Sample larger than for men only, as some firms did not give the break-down.
2 No adjustment was made to allow for the varying proportions of workers m different industries.
3 The percentage increases are based on data supplied by firms furnishing returns on both dates, the
actual average earnings are for a larger sample in the July 1941 period.
4 The returns are materially affected by the fact that the 1941 figures cover a number of establishments,
employing considerable numbers of workers, which were not in operation in the 1938 period.

Reporting was not equally complete in all 16 industries. For ex­
ample, a higher proportion of employers in the engineering industries
made returns than in the building industry. Therefore, revised aver­
ages will be published by the Ministry of Labor and National Service
at a later date. Weights will be calculated for the estimated number
of wage earners in the different industries. If the experience with the
inquiry made in 1940 is a criterion, the results will not be substantially
different from those obtained from the sample study.
MINIMUM WAGE FOR AGRICULTURAL WORKERS
IN ENGLAND AND WALES 1
A NATIONAL minimum wage of £3 weekly was established for
adult male agricultural labor in England and Wales late in 1941, by
action of the Central Agricultural Wages Board. This is a rise of
12s. weekly over the minimum of 48s. adopted in 1940.2 Before de­
ciding upon the £3 base the Wages Board had recommended payment
of at least 56s. weekly, but the higher minimum finally was adopted,
with the approval of most of the county committees.
1 Manchester Guardian Weekly (Manchester), November 21, 1941; and Labor Press Service (London,
Labor Party Press), November 26,1941.
2 See M onthly Labor Review, August 1940 (pp. 418, 419).


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502

Monthly Labor Review—February 1942

Since 1924 regional minimum wages have been established in agri­
culture under special 1egislation. The rates have been given statutory
effect by orders made by the Central Agricultural Wages Board.
Under the terms of an amendment to the law governing agricultural
pay, adopted in 1940, the Central Agricultural Wages Board was re­
quired to fix national minimum wages in England and Whales, and as
stated above a wage order was issued in 1940 and again in 1941.
According to a report from American consular offices in Great
Britain made in 1938 3 the average weekly minimum wage, which had
fallen to 30s. 5d. in January 1934, was 34s. 6d. at that time. Ordinary
workers averaged 37s. in 1938; horsemen, 40s.; and stockmen, 42s.
8 Report No. 234 dated June 15, 1938 (p. 202).


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Labor Turn-Over

LABOR TURN-OVER IN MANUFACTURING,
NOVEMBER 1941
IN NOVEMBER the hiring rate for wage earners in manufacturing
industries declined for the fifth consecutive month, to reach the lowest
level since May 1940, according to the Bureau of Labor Statistics
monthly survey on labor turn-over. The rate fell from 4.87 per 100
employees in October to 3.91 in November; the rate in November
1940 was 4.65. Decreases in the rate of accessions over the month
were reported in nearly all of the industries covered. Defense employ­
ment in the aggregate continued to expand, although the rate of this
expansion tapered off. Private shipyards in November reported an
accession rate of 12.40 per 100 employees, as compared with 14.60
in October, and 7.80 a year previous. Aircraft firms were taking on
workers at a rate of 7.84 per 100 employees, as compared with 10.62
in October and 10.33 in November 1940. Accession rates in other
key defense industries were at considerably lower levels than those
shown by shipbuilding and aircraft, and in most cases their November
rates were below those of October. The rate for rehiring in all manu­
facturing industries combined established a new low (0.79).
Lay-offs in November (1.44 per 100 employees) showed little change
from October (1.41), but were lower than in November 1940 (1.60).
Industries showing increases in lay-offs over both the monthly and
yearly intervals were automobile parts and equipment; brass, bronze,
and copper products; brick, tile, and terra cotta; cement; glass;
planing mills; rubber boots and shoes; and cigars and cigarettes.
The quit rate decreased for the second consecutive month. The
November rate was 1.57, as compared with 2.11 for October and 1.10
for November 1940. Among the industries reporting quit rates sub­
stantially above the all-manufacturing average of 1.57 for November
were radios (2.81); furniture (2.64); hardware (2.57); cigars and
cigarettes (2.50); cotton manufacturing (2.43); shipbuilding (2.39);
sawmills (2.39); planing mills (2.27); rubber boots and shoes (2.22);
and aircraft (2.20). In each of these industries, although the quit
rate declined from October to November, it was still above the Novem­
ber 1940 levels. The discharge rate for all manufacturing declined
from 0.28 in October to 0.24 in November and miscellaneous separa-


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503

ai
o

RATE

LABOR TURN-OVER RATES
IN MANUFACTURING

RATE

PER IOO ON THE PAY ROLL

I2

-

8

6

- 4

2

0
UNITE D STATES BUREAU OF LABOR STATISTICS


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Federal Reserve Bank of St. Louis

Monthly Labor Review—February 1942

- IO

505

Labor Turn-Over

tions from 0.33 to 0.26. The military separation rate (included under
miscellaneous separations) for November was 0.15, as compared with
0.21 in October and 0.13 in September. The November labor turn-over
survey includes more than 8,500 representative manufacturing plants
with nearly 4,100,000 industrial workers in 135 industries.
T able 1.—Monthly Labor Turn-Over Rates in Representative Factories in 135 Industries1
Class of turn-over
and year

Jan.

Separations:
Quits:
1.31
1941
1940______ .63
Discharges:
1941
. 18
1940______ .14
Lay-offs: 2
1.61
1941
1940______ 2. 55
Miscellaneous
separations:
.31
1941
1940______ .11
Total:
1941
1940____

3.41
3.43

Accessions:
Rehirings:
1.45
1941
1940______ 1.96
New hirings:
4.09
1941
1940______ 1.78
Total:
1941
1940____

5.54
3. 74

Aver
Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. age

1.57

1.33
.62

1.70
.67

2.08
.74

2.20

2.06
.78

2.25
.85

2.46
1.10

2.81
1.37

2.11

.77

1.31

1.10

0.99

0.91

.19
.16

.21

.25
.13

.24
.13

.26
.14

.29
.14

.30
.16

.31
.16

.28
.19

.24
.18

. 16

. 15

1.86

2.16

.15

2. 67

1.20

1.06
2.53

1.19
2.69

1.08
2. 78

1.03
2. 32

1.40
2.25

1.13
1.63

1.16
1.48

1.41
1.53

1.44
1.60

.43
. 11

.43

.37

.34

.36

.30

.25

.10

.10

.12

.11

.11

.25
3.21

.33

.11

.20

.26
.18

. 15

3.15
3. 56

3.40
3.46

3.89
3. 66

3.86
3. 78

3.71
3.36

4.24
3.35

4.14
3.00

4.53
3.22

4.13
3. 23

3. 51
3.06

3.16

1.08
1.26

1.24
1.38

1.04
1.42

.92
1.49

.90
2.06

1.04
1.94

.87

3.04

.86
1.22

.79
1.18

1.11

2.20

. 13

3. 35

___ __

1. 69

L 13

3.84
1.72

4. 38
1.56

5.00
1.63

5.03
1.87

5.41
2.70

4.96
2.83

4.32
3. 59

4. 29
4.01

4.01
4.30

3.12
3.47

2.98

4. 92
2.98

5.62
2. 94

6.04
3.05

5.95
3. 36

6.31
4. 78

6.00

5.43
6.63

6.21

5.16

4. 87
5.52

3.91
4.65

4.11

4.77

___

___

2. 70
4. 39

1 The various turn-over rates represent the number of quits, discharges, lay-oils, total separations, and
accessions per 100 employees.
,
_
2 Including temporary, indeterminate, and permanent Iay-ons.
2 Beginning with September 1940, workers leaving to enter the Army or Navy are included m miscellan­
eous separations.”

T able 2. —Monthly Turn-Over Rates (per 100 Employees) in 42 Manufacturing

Industries 1
Accession rates

Separation rates

Industry

Agricultural implements-------Aircraft______ ______ ______
Aluminum_________________
Automobiles and bodies-.
Automobile parts and equipment.
See footnotes at end of table.


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Date

Dis­ LayQ uit 2 charge
ofl

Nov.
Oct.
Nov.
Nov.
Oct.
Nov.
Nov.
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

Nov.
Oct.
Nov.
Nov.
Oct.
Nov.

1.29
1941
1941
1. 57
1940 ' 1.07
1.69
1941
2.29
1941
1.24
1940

0.87
1.93
. 63
2.20

2.73
2.06
1.14
1.55
1.12

0.15
.24
.20

.50
.55
.47
.25
.36
.15
.17
.18
.10

.28
.37
.32

1.39
1.58
.71
.26
.53

Miscel- Total Re­
lane- separa­
hir­
ous
ing
separa­ tion
tion 2
0. 25
.26
.11
.22

1.62
3.93

.27
.16
.65
.65

.88

.66

1.51
1.87

.54
.47

2.85

.33
.42
.13

.68

2.22

1.86

2.70

.11

2.66

4.01
1.65
3.18
4.08
3. 37
3. 66
6. 49
2.81
3.51
4.09
3.50
5.15
4. 94
4. 39

0.45
.85
.85
.42
.25
.86

.63
2. 23
.48
1.31

1.86

1.52
1.05
1.33

1.01

New . Total
hiring acces­
sion

1.73
3.66
2. 92
7.42
10. 37
9. 47
2.49
2.30
4. 27

2.18
4.51
3.77
7.84
10.62
10. 33
3.12
4. 53
4.75

2.50
2.41
3.10
4.01
5. 44
5.28

3.81
4. 27
4.62
5.06
6. 77
6.29

506

Monthly Labor Review—February 1942

T able 2.— Monthly Turn-Over Rates (per 100 Employees) in 42 Manufacturing

Industries 1— Continued
Separation rates

Industry

Boots and shoes_____________

Date

Dis­ Lay­
Q u it 2 charge
off

Nov
Oct.
Nov
Nov
Oct.
Nov.
Nov
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

1.33
1.77
.78
1.71
2.37
1.42
1.59
1.97
.94

0.16
.19
.09
.27
.39
.35
. 15
.32
.28

Nov.
Oct.
Nov.
Cement______ _____________ Nov.
Oct.
Nov.
Chemicals_____________ _____ Nov.
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

1.45
1.48
.58
.78
.91
.39

.34
.42
.37
.13
. 14
. 14
.24
.41

Brass, bronze, and copper prod­
ucts.
Brick, tile, and terra cotta___
Cast-iron p i p e .- .......................

Cigars and cigarettes_________
Cotton manufacturing________
Dyeing and finishing textiles__
Electrical machinery. _________
Engines, turbines, and water
wheels. 3
Foundries and machine shops..
Furniture______ ____________
G la s s...__________________ _
Hardware__________________
Iron and steel_______________
Knit goods_________________
Machine tools_______________
M en’s clothing..........................
Paints and varnishes...........
Paper and pulp_____________
Petroleum refining___________
Planing mills............................. .

Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940
Nov. 1941
Oct. 1941
Nov. 1940

See footnotes at end of table,


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1.11

1.39
1.31

2.50
2.83
1.16
2. 43
3.46

2.02

2. IS
3.01
1.65
1.20

1.64
.80
1.04
1.61
1.31
1.64
2. 33
1.05
2. 64
3.35
1.27
1.37
1.63
.45
2. 57
3.50
1.96
1.09
1.36
.63
1.69
2.17
1.06
1.59
1.93
1.47
1.40
1. 49
1.00

1.23
1.78
.77
1.52
1.68
.68

.35
.53
.31
2. 27
3.54
1.48

.11

.31
.09
.44
.28
.33
.25
.34
.34
.25
.20

.28
. 18
.26
.38
.19
.37
.44
.27
.43
.51
.23
. 19
.26
.08
.29
.38
.17
.10

. 15
.09
.21

.27
. 15
.43
.44
.34
.09
.16
.17
.18
.29

.10

.26
.27
.10

.07
.03
.06
.46
.47
.31

Miscel- Total Relane- separa­
hir­
OI1S
ing
separa tion
tion 2

2.04
1.37
2.37
2. 48
1.52
.62
2.35
1.67
2. 23

0.26

.21

.25
.26
2.05
1.14
1.50
.76
.71
.79
2.19
.33
1.19
.96
.81
1.04
.77
1.14
1.10
1.00
1.02

.74
. 17
.46
.10

.96
1.42
.85
1.93
1.35
2.40
2.16
1.48
1. 75
.92
1.18
.24
.41
.51
.21

1.38
1.74
1.40
. 10
.18
.10

2.47
1.96
4.33
.90
1.17
.92
.79
1.07
1.08
.90
1.05
1. 90

2.10

1.49

2.01

Accession rates

New Total
hiring acces­
sion

.24
.47
. 13
.23
.24
.14

3.79
3. 54
3.35
4.70
4. 75
2.52
4. 32
4.20
3. 59

1.04
.85
1.31
.79
.82
.16
.67
.40
1.26

2.04
2.83
1.89
2. 51
3.34
7.09
1.69
2.84
2.81

3.08
3. 68
3.20
3.30
4. 16
7. 25
2. 36
3. 24
4. 07

. 16
.28
.07
.41
.29
.31
.30
.36
.08

2.16
2. 43
1.28
3. 37
2.48
2. 34
2.41
2. 87
2.29

.53
.78
. 17
.54
.30
.27
.35
.29
.62

1.51
2. 84
3.32
1.32
1.72
1.17
2.70
3.72
2.08

2.04
3.62
3.49

.18
. 14
.17

5.18
3. 39
2.96
3.89
4. 89
3. 65
3.47
4. 77
3.17
2.79
3. 53
2.07
1.70
2.73
1.61
3.24
4.50
2. 33
5. 33
5. 59
4.04
4.03
3. 98
2. 49
4.04
5. 40
2.56
1.94
2.49
1.13
3.40
4.31
2.67
2.31
2.70
2.08
4.06
3.71
5. 59
2. 59
3.68
1.87
2.79
3. 30
2. 04
1.59
2.03
2.50
5.07
5.90
3.91

.76
1.16
. .78
.95
1.19
1.65

2.97
3.61
1.71
3.01
4. 25
4.21
2. 89
3. 68
4.23
2.75
3. 68
5.41
4.18
5.12
5. 44
3.25
4.46
4. 66
4.09
5.22
3.17
2.35
4.19
3.35
3.67
4. 07
7.74
1.38
1. 60

.21
.11

.22

.29
.34
. 18
.28
.17
.39
.59
.35
.23
.28
.02

.27
.31
.16
.33
.38
.14
.31
.61
.21

.26
.34
. 19
.34
.47
.20
.12

.13
.06
.19
. 15
.17
.10
.10

.09
.28
.44
.08

.22

.28
.18
.27
.42
.23
.24
.40
.11

.86

1.36
.87
.34
.39
.73
.45
.74
.26
.44
.50
.61
.83
.90
.71
.77
1.81
.79
.80
1.29
.23
.36
.37
.61
.79
1.33
1.26
.07
.20

.52
1.31
1.07
2.45
.21

. 12
.29
.71
.48
.54
.47
.35
.53
.43
1.33
1.34

2.22

2.31
2. 53
2.50
3.81
4.15
3.82
1.64
2.36
1.85
1.85
2. 59
1.64
2. 21
3. 20
1.28
1.49
1.56
.28
2.82
3.94
3.13

1.86
2.02

1.44
3.05
4.01
2.70
3.73
4. 77
2.49
3.96
5.44
5.86
3. 75
5.04
5.10
3.09
4.07
6.14
4.63
5.86
5. 70
3.69
4. 96
5. 27
4. 92
6.12

3.88
3.12

6.00

4.14
4. 47
5. 36
7.97
1.74
1.97
2.83
3.10
3.86
3. 76
3. 88
4. 35
4.34
2. 95
3.43
4.30
2.06
2. 71
1.93
2.92
3.68
1.82
1.96
1.91
.81
3. 25
5. 27
4.47

507

Labor Turn-Over

T able 2 — Monthly Turn-Over Rates (per 100 Employees) in 42 Manufacturing

Industries1— Continued
1

Industry

Da te

Dis­ Lay­
Q u it 2 charge
off

Printing: Book and job----------- Nov.
Oct.
Nov.
Nov.
Printing: Newspapers and peri­
Oct.
odicals.
Nov.
Radios and phonographs--------- Nov.
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

1.50
1.89
.76

0.20

.80
.27
2. 81
2.94
1.99

.14
.06
.43
.28
.16

Rayon and allied products------- Nov.
Oct.
Nov.
Nov.
Rubber boots and shoes---------Oct.
Nov.
Rubber tires_________ _____ Nov.
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

.56

.18
.19
.15
. 17
.19

Nov.
Oct.
Nov.
Shipbuilding--------- ------------- Nov.
Oct.
Nov.
Silk and rayon goods-------------- Nov.
Oct.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

Slaughtering and meat packing. Nov.
Oct.
Nov.
Steam and hot-water heating Nov.
Oct.
apparatus.
Nov.
Structural and o r n a m e n t a l Nov.
Oct.
m etalwork.
Nov.

1941
1941
1940
1941
1941
1940
1941
1941
1940

Sawmills___________________

Tools (not including edge tools, Nov. 1941
machine tools, files, and saws). Oct. 1941
Nov. 1940
W oolen and worsted goods------ Nov 1941
Oct. 1941
Nov 1940

Accession rates

Separation rates

.66

.88
.68
2. 22

2. 47
1.42
1.04
1.45
.52

.29
. 11
.21

2. 21

2.54
2.40
1.31
1.23
1.99
2. 25
.86

6.03
1. 39
1.40
.49
.67
.11

Miscel- Total Relane- separa­
hir­
ous
ing
separa­ tion
tion 2
4.02
4.91
3.50
2. 39
2.38
2.48
5. 77
4.24
8. 41

1.46
1. 51
2.17
.71
.92

.26
.39
. 11
.56
.51
. 13
.46
.48
.14

2.39

.10

6. 86
6.96
5.30
5.02
6.04
5. 27
4.48
5. 68
4.68

1.59
1.55
1.93
2. 62

6.91
9.04
5.16
3.14
3.80
3. 27
2.71
3. 65
4. 38

4.93
4.39
4.89
.48
. 30
.07
.53
.34
1.96

3.35
3. 04
2. 77
3.26
4. 04
5. 32

.18
. 22
. 44
.70
1.07
1.52

0.11

. 19
.23
.21
.21

.16
.28
. 16
.23

.06
.09
.06

.21

.50
.39
1.23
.51

2.39
3.80
1.23
2.39
2. 70
1.32
1.96
3.22
1.75

.50
.34
. 17
.46
.54
.25
.23
.23

3.69
2. 44
3. 74
1.85
2.38
3.37
2.09
1.89
2. 75

.28
.38
.16
.32
.42
.33

1.60

.28
.28
.16
.25
.29
.24
.18
. 21
. 13

4.54
6. 33
3.80
.99
.70

.49
.56
.26
.30
.40
. 14

.31
. 13
. 18
.24
.29

.94
.39
1.31
.83
.94
2.48

1.86

.94
1.60
2.41
1.69
1.29
1.90
1.24
1.88
2. 26
1.11

2.06
2. 59
2.64

.10

.11

1.20

1.03
1.06
2. 87

.20

.34
.08

.21

.48
.14
.22

. 26
. 17
.13
.22

.09

2.86

1.43
3.62
3. 28
2.26
1.95
3.25
1.23

1.20

.69
.69
1.23
.53
.35
.90
1.73
.68

.48
.79
1.47
LiO
1.10

1.21

1. 75
1.97

New Total
hiring acces­
sion

3.95
2.92

4.98
6.34
4.98
1.73
2.16
2. 76
3. 55
4. 64
4.15

1.26
1.92
1.69
2.83
5.16
8.46
1.80
1.39
2.74

1.36
2.45
2.04
3.73
6.89
9.14
2.28
2.18
4.21

2.63
4.02
2.85
10.85
12. 67
5.18
2. 79
2. 80
2. 74

3.73
5.12
4.44
12.40
14.60
7.80
4. 00
4. 55
4.71

7.18

12.11

3.52
4.83
2. 81
1.02

1.24
1. 56

2.86

6.00
8.02

1.79
3. 25
4.05
2.19
2.33
7.12

10.39
12.91
2. 27
3. 55
4.12
2.72
2. 67
9. 08

3.21

3. 39

4. 74
2. 96
3.43
5. 50

o. 18

3.66
4.50
7. 02

No individual industry data shown unless reports cover at least 25 percent of industrial employment.
| Beginning with September 1940, workers leaving to enter the Army or Navy are included m miscellane­
ous separations.”
s Including aero-engines.


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Building Operations

S U M M A R Y O F B U IL D IN G C O N S T R U C T IO N IN
P R I N C I P A L C I T I E S , D E C E M B E R 1941 1

GAINS made in the early part of the year pushed 1941 buildingpermit valuations 5 percent ahead of those for 1940. However,
December was the third consecutive month of 1941 in which permit
valuations dropped below the total for the corresponding month of
1940. The major part of the 35-percent decrease in permit valuations
between December 1940 and 1941 was in new nonresidential con­
struction, which dropped 47 percent. Valuations for new residential
construction decreased 26 percent, but those for additions, alterations,
and repairs rose 8 percent. In making these comparisons it should
be pointed out that permit valuations for nonresidential construction
in December 1940 were only slightly below those in October 1940,
which was the highest month since the summer of 1930.
Permit valuations for December 1941 were a little higher than
those for the previous month because of a 41-percent increase in new
nonresidential construction. This gain was almost entirely offset,
however, by decreases of 22 percent in new residential construction
and of 2 percent in additions, alterations, and repairs.
Comparison of December 1941 With November 1941 and
December 1940
The volume of building construction in 2,006 identical cities with
populations of 1,000 and over which reported to the Bureau of Labor
Statistics in December 1941, November 1941, and December 1940 is
summarized in table 1.
The number of new dwelling units for which permits were issued
and the permit valuation of such new housekeeping residential con­
struction in the 2,006 cities in December 1941 are presented in table 2.
Percentage changes between December 1941 and November 1941 and
December 1940 are also shown.
1 More detailed information by geographic divisions and individual cities is contained in a separate pam­
phlet entitled, “Building Construction, December 1941,“ copies of which will be furnished upon request.

508


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Federal Reserve Bank of St. Louis

509

Building Operations

T able 1.—Summary of Building Construction for Which Permits Were Issued in 2,006

Identical Cities, December 1941
Permit valuation

Number of buildings

Class of construction

Percentage change
from—
December
1941

Novem­ Decem­
ber 1941 ber 1940

December
1941

Percentage change
from—
Novem­ Decem­
ber 1941 ber 1940

All construction_____: ---------------------

43,978

-23.8

- 8.6

$164, 275,614

+0.5

-34.5

New residential-------- ---------------------New nonresidential-----------,,.............. .
Additions, alterations, and repairs-------

13,804
7, 366
22,808

-24.1
-28.4
-21.9

-31.0
- 2.6
+10.9

68,699,124
72,924,649
22,651,841

-22.5
+41.2
-2 .4

-25.8
-4 6 9
+8.3

T able 2. —Number and Permit Valuation of New Dwelling Units in 2,006 Identical

Cities, December 1941, by Source of Funds and Type of Dwelling
Permit valuation

Number of dwelling units

Source of funds and type of dwelling

All dwellings____________ ________ ---

Percentage
change from—
December
1941

17,061

14,809
Privately financed----- .
-------12,352
1family____ -2family i . ---------------- - - - - 1,088
-- - 1,369
Multifamily 2______ ,-----------------2, 252
Publicly financed... - - -----------

December
1941

Novem­ Decem­
ber 1941 ber 1940

Percentage
change from—
Novem­ Decem­
ber 1941 ber 1940

-29.6

-34.4

$63,377,074

-28.1

-31.5

-29.9
-17.3
-4 .1
-73.0
-27.5

-21.9
- 8 .4

55,260,642
49,125,341
2,699, 768
3,435, 533
8,116,432

-28.6
-16.8
- 11.8
-77.6
-24.3

-22.5
-11.9
- 4 .8
-73.0
-61.6

+ .2
- 68.8
- 68.1

1 Includes 1- and 2-family dwellings with stores.

2 Includes multifamily dwellings with stores.

Comparison of 1940 and 1941
Total permit valuations reported in 1940 and in 1941 are com­
pared in table 3.
T able 3. —Permit Valuation of Building Construction, by Class of Construction,

1940 and 1941 1
Permit valuation
Class of construction
1941
All construction----------- ---------------------------------New nonresidential----------------------------------------Additions, alterations, and repairs----------------------

$2, 688,490, 507
1,440,861,390
882, 256,475
365,372,642

1940

Percentage
change

$2, 555,909, 527

+5.2

1, 275,824, 536
941,389,099
338, 695, 892

+12.9
-6 .3
+7.9

i Based on reports from cities with a population of 1,000 and over, the cities being identical for any given
month of both years.

The number and permit valuation of new dwelling units for which
permits were issued in 1941 are compared with similar data for 1940 in
table 4.

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Federal Reserve Bank of St. Louis

510

Monthly Labor Review—February 1942

T able 4. —Number and Permit Valuation of New Dwelling Units, 1940 and 1941, by

Source of Funds and Type of Dwelling 1
Number of dwelling units
Source of funds and type of
dwelling
1941

1940

Permit valuation

Percent­
age
change

1941

Percent­
age
change

1940

All dwellings ________

380, 914

350, 268

Privately financed__ ____

320,876

290,899

+10.3

1,219,263, 710

1,073,449,839

+13.6

222, 706

+11.4
+18.7
+2.5
+ 1.1

1,016, 348,961
56, 351,596
146, 563,153
202,132, 934

881, 665,946
45,684,996
146,098,897
182, 635,110

+15.3
+23.3
+• 3
+10.7

12-

family____ __________
__ .
248,081
fam ily 2 _ _
21,405
Multifamily 3_________
51, 390
Publicly financed_______ __
60,038

18,036
50,157
59,369

+8.7 $1,421, 396, 644 $1,256,084, 949

+13.2

1 Based on reports from cities with a population of 1,000 and over, the cities being identical for any given
lonth of both years.
6
2 Includes 1- and 2-family dwellings with stores.
3 Includes multifamily dwellings with stores.

Construction from Public Funds, December 1941
The value of contracts awarded and force-account work started
during December 1941, November 1941, and December 1940 on all
construction projects financed wholly or partially from Federal funds
is shown in table 5. This table includes other types of construction
as well as building construction, both inside and outside the 2,006
reporting cities.
T able 5.— Value of Contracts Awarded and Force-Account Work Started on Construction

Projects Financed From Federal Funds, November and December 1941, and December
1940 1

Federal agency

Contracts awarded and force-account work
started
December 1941 November 19412 December 19402

Total___ ________________ _____
Public Works Administration:
Federal_______ _____________ . . . .
Non-Federal:
N. I. R. A_ ................... ............
E. R. A. A ______________
P. W. A. A., 1938____________
Federal agency projects under the WPA
Regular Federal appropriations....... ......
United States Housing Authority..........
Preliminary, subject to revision.

$559,213,763

$178,027,737

$660,952,702

0

0

4,907

0
0
0
0

0
0
0

9,839
4,864
2, 285,841
149,136
646, 522,139
11,975,976

551,346.729
7,867,034

247,616
168,492,065
9,288,056

Revised.

The value of all contracts awarded for public buildings and highway
construction to be financed wholly from State funds, as reported by
the State governments for December 1941, November 1941, and
December 1940, was as follows:
Public buildings

December 1941--------------------------- $786,646
November 1941-------------------------- 1, 712, 982
December 1940-------------------------- 3, 754, 073

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Federal Reserve Bank of St. Louis

H ighw ay
construction

$10,513,287
8, 788, 661
16, 649, 290

Building Operations

511

Coverage of Building-Permit Statistics
Building-permit data are collected by the Bureau of Labor Statistics
directly from local building officials, except in the States of Illinois,
Massachusetts, New Jersey, New York, North Carolina, and Penn­
sylvania, where State departments of labor collect and forward the
data to the Bureau. Reports are obtained each month from more
than 2,000 places having a population of 1,000 or more in 1940, from
which are selected those for cities which also reported in the preceding
month and in the corresponding month of the previous year. The
resulting tabulations of identical cities cover practically all cities with
a population of 50,000 or more; the completeness of the coverage of
cities in the remaining population groups decreases with the size of
city.
In addition, the Bureau receives notifications of the value of con­
struction contracts awarded by Federal and State Governments.
Federal and State building construction in the 2,006 reporting cities
totaled $35,651,000 in December 1941, as contrasted with $32,114,000
in the previous month and $87,691,000 in December 1940.
The permit-valuation figures represent estimates of consti uction
costs made by prospective builders when applying for permits to
build, in the case of privately financed construction, and the value of
contracts awarded, in the case of construction financed with Fedeial
or State funds. No land costs are included. Only building con­
struction within the corporate limits of the reporting cities is included
in the tabulations.


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Federal Reserve Bank of St. Louis

Retail Prices

R E T A I L C O S T S O F F O O D , D E C E M B E R 16, 1941

RETAIL puces of most foods continued to rise between November 18
and December 16, but the rise was moderate in comparison with earlier
months. Large seasonal declines for pork, eggs, and oranges, and
lower prices of butter reduced the total cost of the family food bill
sufficiently to offset these advances, and the Bureau of Labor Statis­
tics index of retail food costs remained at 113.1 percent of the 1935-39
average. Food costs in mid-December were 16 percent higher than a
year earlier.
By the end of December, preliminary reports indicated additional
moderate advances in prices of sugar, flour, navy beans, beef, and
coffee, with further seasonal price declines for oranges and eggs, and
lower butter prices.
Retail prices of oranges declined 22 percent between mid-November
and mid-December. Both California navel and Florida oranges were
late in arriving on the market, thus creating a scarcity in midNovember. By mid-December supplies were available in much
greater volume, with a consequent sharp price decline. Supplies of
pork and eggs were also marketed in increasingly large quantities,
and the decline of butter prices reflected an unusually large supply.
The Department of Agriculture reports that supplies of butter on
hand as of January 1 were the largest that food dealers have ever
reported on that date.
Sugar prices, generally very sensitive to war conditions, advanced
moderately. After the attack on Pearl Harbor there were some
scattered reports of hoarding and runs on grocery stores, similar to
those of September 1939. However, this situation was not general up
to January 1, and where it did occur, grocers voluntarily limited pur­
chases to 2, 5, or 10 pounds per customer, particularly after the order
of December 13, 1941, which froze sugar stocks in the United States,
and limited the supplies available to retailers.
Advances in prices of milk and bread have been made during the
cut lent year in most of the cities covered by the Bureau of Labor
Statistics surveys. Between mid-November and mid-December,
price increases for milk were reported in 7 cities. For bread, moderate
declines occurred in 5 cities and slight advances in 7.
512


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Federal Reserve Bank of St. Louis

513

Retail Prices

Lard prices were higher in most cities on December 16 than on
November 18, continuing the rapid rise which has prevailed during
most of the year. The upward trend in prices also continued for
canned tomatoes, navy beans, and cheese, as these commodities,
together with lard, are being exported in considerable quantities.
As compared with December 17, 1940, prices of some of the more
important fresh vegetables, such as potatoes, cabbage, and onions,
were more than 40 percent higher, reflecting somewhat smallei
supplies and greater demand. Lard prices were up 65 percent above
the relatively low level of the previous year, partly because of Govern­
ment purchases under the Lend-Lease Act, and prices of shoitening in
cartons were 58 percent higher. Advances amounting to 30 to 40
percent over a year ago were reported for canned peaches, navy beans,
and canned red salmon. Coffee prices were also up 30 percent, largely
as a result of higher minimum-price levels set under agreements
with coffee-producing countries, as well as of higher shipping costs.
For flour and rice, prices were 19 percent higher, and for bread, 10
percent higher. Prices of cereals and bakery products other than
bread, flour, and rice, were only slightly higher than a year ago.
Indexes of retail costs of food by commodity groups are presented in
table 1 for October, November, and December 1941, November 1940,
August 1939 (immediately before the outbreak of the war in Europe),
and December 1929. The accompanying chart shows the trend in the
costs of all foods (1935-39 = 100), and each major commodity group
for the period from January 1929 to December 1941, inclusive.
T able 1 — Indexes of Retail Costs of Food in 51 Large Cities Combined,1 December,

November, and October 1941, December 1940, August 1939, and December 1929
[1935-39 = 100]
1940

1941
Commodity group
Dec. 162 Nov. 18 Oct. 14

1939

1929

Dec. 17 Aug. 15 Dec. 15

All foods-------- -------------- -------------------------

113.1

113.1

111.6

97.3

93.5

133.8

Cereals and bqkpry prod nets
____________
___
Meats
Beef and veal
__ _ - - — ----Pnpk
_
------Tdarrib
__
Chickens
________ - — — Fish fre<sh and canned
_
_
_____ ______ _ - Cqi’ry products
kpos ----- _ ---- --------Fruits and vegetables
_ ____ ________
Fresh
___ ~- —
Canned
_ ________ ____
Cpied
__
__
Beverages
-- ___ ____
Fats and nils
___ _____ _______

102.5

102.2

102.2

94.8
97.4
107.0
80.8
94.1
93.4
114.1
107.4
111.7
90.4
89.5
91.3
99. 6
90.3
80.1
94.7

93.4
95.7
99.6

107.1
123.4
(3)
(3)

138.1
110.5

110.4
112.4
105.4
107.4
99.4
135.9
120.9
4146.1
i 110.3

106.3
118.3
114.1
108.5
114.4

105.2
116.2
112.9
106.7
112.9

111.1

114.4
103.2
108.1
100.5
138.9
120.6

111.0

111.2

112.9
115.1
109. 3
110.8
101.6

131.5
119.9
137.3
104.0
103.5
103.7
112.7
111.0

105.6
112.5

88.0

98.8
94.6
99.6
93.1
90.7
92.4
92.8
91.6
90.3
94.9
84. 5
95.6

0

(3)
(3)
127.9
182.9
178.0
184.3

121.6

176.2
115.2

1 Aggregate costs of 54 foods in each city, weighted to represent total purchases of families of wage earner
and lower-salaried workers, have been combined with the use of population weights.
2 Preliminary.
3 N ot available.
4 Revised.


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Federal Reserve Bank of St. Louis

514

Monthly Labor Review—February 1942

R

E T A

I L

C

O

S

T

O

F

F O

O

D

I9 3 5 -3 9 -IO O

INDEX

INDEX
220

ccU

20 0
/

180

180
1 M-F R Ü H rs AND VEGIIT A B L E s

160

f

J
t

140

i

\

120

\

\

100

140

i

A

ft

120

T

100

T

80

I

V

' A v

80
'■ ''ALL FO ODS

60

60

140

140

120

120
ALL

«»«**»

FOOD!

100

S

«SSÇ5

*

,
£

100

r \

/

80

80

C ER EA LS a n d / ' '
BAKERY PRODUCTS
60 ______1______ ______ 1______

60

140

140
y

V

120

120
A -L

FOODS^
K

100

100

80

80

y

60

XMEATS
I

!

60

1
1
A L L FOODS

140

—

120

120
*

100

100

^
1
A I R Y PRODUCTS

80
60
1929

1930

1931

1932

1933

1934

U.S.DEPT. OF LABO R -BU R EAU OF LABOR STATISTICS


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Federal Reserve Bank of St. Louis

1935

1936

1937

1938

1939

60
1940

1941

942

I

515

Retail Prices

Among the 54 foods included in the index, prices of 36 were higher
in December 1941 than in November; prices of 10 were lower, and
for 8 there was no change. Average prices of 52 foods were higher
on December 16 than they were a year previous, one was lower, and
for one there was no change.
Average prices of 65 foods in 51 cities combined are shown in
table 2, for December and November 1941 and December 1940.
T able 2. —Average Retail Prices of 65 Foods in 51 Large Cities Combined,

December and November 1941 and December 1940

Article

Cereals and bakery products:
Cereals:
Flour, wheat----------------------Macaroni_________________
Wheat cereal2______________
Corn flakes________________
Corn m eal...,------------------—" R ip p 2

Rolled o ats2-."11111111111 ” 11.
Bakery products:
Bread, w hite------------------- --Bread, w h o le - w h e a t----- _-Bread, ry e___________ _____
Vanilla cookies--------------- Soda crackers--------------------Meats:
Beef:
Round steak---------------------Rib roast________________ -Chuck roast_______________
Veal:
Cutlets------------------------- —
Pork:
Chops____________________
Bacon, sliced______________
Ham, sliced 2______________
Ham, whole----------------- ------Salt pork_________________
Lamb:
Leg-------------------------- ------. Rib chops________________ _
Poultry:
Roasting chickens_-........... —
Fish:
Fresh, frozen---------------------Salmon, pink--------------------Salmon, red 2„ . -------- --------Dairy products:
B u tte r ...- ------------- --------------Cheese------------ ------ ---------------Milk, fresh (delivered)-------------Milk, fresh (store)-------------------Milk, fresh (delivered and store) 2
Milk, evaporated--------------------Fruits and vegetables:
Fresh:
A pples--.---------------Bananas___________
Oranges------------------Grapefruit 2_.----------Beans, green-----------Cabbage---------------- Carrots_____________
Lettuce_____ ______
Onions---- ------ --------Potatoes-.....................
S pinach...--------------Sweetpotatoes---------See footnotes at end of table.
438471— 42------ 16


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Federal Reserve Bank of St. Louis

Dec. 16 1

Nov. 18

Dec. 17

Cents

Cents

Cents

41.3
13.0
23.6
7.1
4.3
7.9
7.1

pounds...pound.-oz. pkg_.
-oz. pkg._
..pound.
__do__
__ do___

49.2
14.0
23.9
7.1
4.4
9.4
7.6

48.5
14.0
23.8
7.1
4.4
9.1
7.5

__ do___
__ do___
__ do___
__ do__ _
__ do___

8.6

8.6

9.5
9.6
25.8
15.3

9.5
9.6
8 25.7
15.2

9.1
25.0
14.9

__ _do_ __
_ __do__ _
__ do___

40.1
31.8
27.0

39.3
31.1
26.5

37.7
31.0
25.1

__ do___

48.9

49.0

43.1

__ do___
__ do___
. __do_ __
__ do_ __
__ do___

34.5
36.0
52.4
31.9

36.0
36.3
52.4
32.0

20.2

20.0

26.6
28.9
44.0
25.0
16.4

__ do___
__ do___

30.5
38.2

30.5
37.8

26.5
33.5

__ do___
__ do___
6-oz. can..
__ do__

32.1
(4)

7.8
8.8

31.7
(4)

( 4)

20.0

36.9

36.3

15.7
26.2

_.pound..
__ do__
-_ quart..
__ do___
__ do___
A-oz. can..
__ dozen..

42.3
34.5
14.8
13.7
14.4

41.8
26.6
13.0

49.0

43.3
34.2
14.7
13.6
14.3
8.7
51.9

__.pound..
___ do___
...dozen..
___ each..
.pound..
___ do___
...bunch..
__ head..
_-.pound..
5 pounds..
_ .pound..
___ do

5.6
7.5
30.0
5.0
11.3
4.0
7.2
12.3
5.1
40.0
7.8
4.4

3 38.3
5.5
15.4
3.5
6.7
8.7
4.6
39.1
7.9
4.2

20.0

8.8

11.8

12.6

7.0
39.8
5.0

5.3

6.6

8.0

(*)

27.9
9.5
2.8

5.6
8.4
3.5
28.9
7.0
4.6

516

Monthly Labor Review—February 1942

T able 2. —Average Retail Prices of 65 Foods in 51 Large Cities Combined,

December and November 1941 and December 1940— Continued
1941

1940

Article

Fruits and vegetables—Continued.
Canned:
Peaches_______ _________
Pineapple______________
Grapefruit-juice 2________
Beans, green 2___________
Corn___________________
Peas_____ ...___________
Tomatoes_________ . . . ___
Dried:
Prunes_____________ ____
Navy beans_____________
Beverages:
Coffee___________________ 1_.
Tea_______________________
Cocoa 2____________________
Fats and oils:
Lard______________________
Shortening, other than lard:
In cartons______________
In other containers_____. . .
Salad dressing____________ . . .
Oleomargarine______________
Peanut butter______________
Sugar and sweets:
Sugar______________________
Corn sirup 2_________________
Molasses 2__________________

can..
__-do__
o. 2 can..
...d o __
-__do__
-__do_-__

Dec. 16 4

Nov. 18

Dec. 17

Cents

Cents

Cents

21.6

22.4
9.6
12.3
12.2

14.3

21.4

16.6
20.9

22.2

9.5
11.9

(5)

9.9

12.0

10.6

10.0

14.2
9.9

.pound._
.--d o ___

10.7
8.5

10.5
8.3

9.6
6.5

-__do__
pound..
-oz. can..

26.9
19.7
9.2

26.6
19.5
9.1

20.5
17.6
9.1

13.4
8.3

.pound..

15.2

14.8

9.2

___do___
-__do__
...p in t..
.pound..
-__do___

17.9
23.7
23.8
19.7

11.3
18.3
20.1

20.0

17.7
23.3
23.7
19.5
19.6

pounds..
-oz. can__
-oz. can__

61.4
14.1
13.6

60.6
14. 1
13.5

50.9
13.6
13.5

15.5
17.7

1 Preliminary.
2 Not included in index.
3 Revised.
4 Composite prices not computed.
5 Priced first time Oct. 14, 1941.

Details by Regions and Cities
Retail food costs advanced in 28 cities, declined in 22, and remained
unchanged in 1, between November 18 and December 16. The
largest increases were reported for Los Angeles (2.8 percent), Scranton
(2.1 percent), Washington, D. C. (1.8 percent), and Baltimore (1.6
percent). Sharp advances in prices of fresh vegetables and greater
than average increases for beef were responsible for these higher
costs. The largest decreases were for Providence (1.7 percent),
Jacksonville (1.6 percent), Chicago and Cincinnati (1.4 percent).
The drop in prices of fresh fruits and vegetables combined with the
large seasonal decline for pork was responsible for the decreases.
Indexes of food costs by cities are presented in table 3 for December
and November 1941 and December 1940.


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Federal Reserve Bank of St. Louis

517

Retail Prices

T able 3.— Indexes of the Average Retail Cost of A ll Foods, by Cities,1 December and

November 1941 and December 1940
[1935-39=100]

Region and city

Region and city

United States__

- -

Dec.
162

Nov.
18

113.1

113.1

New England:
111.5
110.1
Boston____ _ __
111.5
111.9
Bridgeport __ __ __
TT'rII Riypr
111. 7
110. 5
Manchester.. .. . . . 111.7 4112.8
in i
no. 5
^pyr a,ypn
111.2
Portland, M aine... . 110.7
410.2
112.1
Provid pti pp
Middle Atlantic:
115.2
115.4
Buffalo___
111.9
112.1
Newark_____
^ 0^ York
113.1
112.5
108. 7
Philadelphia
109.8
113. 7 112.9
Pittsburgh
112.2
112.1
Rochester
109.5
111.8
Scranton _ ..
_
East North Central:
114.8
113.2
Hhicago
112. 7 114.3
(Tincinnati
116.4
115.0
(Tlpyoland
110.4
111.1
Columbus, Ohio___
112.0
111.4
Detroit
TnHicmcmnlic:
115 2
114.9
inuiancipuiio----------Milwaukee
110. 5 111.3
116.1
116.7
Peoria
115.7
Opi lilgilclU, ill-------- 115.8
West North Central:
109. 7 4 109.6
Transas Dity
112.9
Minneapolis----------- 111 9
109.4
110.5
Omaha . . ----- --

Dec.
17
97.3
94.7
96.3
97.1
97.2
95.4
4 96.0
96.7
98.9
98.2
98.6
94.8
97.8
100.1

99.1

97.2
95.8
98.7
94.0
95.8
98.8
95.1
99.3
97. 3
92.9

100.8

98.7

1940

1941

1940

1941

West North Central— Con.
St. Paul__________
South Atlantic:
Atlanta----- -------Baltimore______ ...
Charleston, S. C._ _.
Jacksonville_______
Norfolk 3----- -------Richmond.. ______
Savannah_______ .
Washington, D. C__.
East South Central:
Birmingham.. ------L ouisville...---- . . .
Memphis___ _____
Mobile___________
West South Central:
Dallas_______ ___
Houston___ _____
Little Rock__ . . ..
New Orleans---------Mountain:
Butte_____________
Denver . . . .
Salt Lake City------Pacific:
Los Angeles---- ---Portland, Oreg------San Francisco- ----Seattle .. ___

Dec.
16 2

Nov.
18

Dec.
17

117. 5
111.5

117.0
111.4

99.3
99.8

111.1

111.1

95.2
96.8
96.3
99.0
97.1
94. 5

114.3
116.1
113.1
114.7
117.3 4 119.2
117.6
116.7
112.6

111.8

118.1
113.4

118.6
111.4

100.2

112.0

112.6

4 96.8

120.2

4 97.3

96.6
95.9
95.6

113.7
113.1
120.7

114.1
112.3

117.9
115.5
119.9

111.0

111.7
118.6
114.4
118.7

110.4
111.9
115.4

110.9
113.2
115.7

98. 2
95.9
98.6

118. 6
121.3
115. 4

115.4
121.7
114.4
118.9

99.9
100.7
97.9

120.6

92. 2

102.1

96.0
100.5

100.2

i Aggregate costs of 54 foods in each city, weighted to represent total purchases of families of wage earners
and lower-salaried workers, have been combined for the United States with the use of population weights.
Primary use is for time-to-time comparisons rather than place-to-place comparisons.
2 Preliminary.
3 Includes Portsmouth and Newport News.
4 Revised.

Average A nnual Indexes of Retail Food Costs, 1913 to 1941

In order to make it possible to compare current trends in retail
food costs with trends for earlier years, including the World War I
period, the Bureau has prepared average annual indexes of retail food
costs for the years 1913 to 1940 inclusive. These yearly indexes and
average monthly indexes for 1940 and 1941 are shown in table 4.


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Federal Reserve Bank of St. Louis

518

Monthly Labor Review—February 1942
Indexes of Retail Food Costs in 51 Large Cities Combined, by Years From
1913 to 1940, and by Months, January 1940 to December 1941, Inclusive

T able 4.

[1935-39 = 100]
Year

All
foods
index

Year

All
foods
index

Year and month

1913
__
1914
__
1915________
1916_________
1917_________

79.9
81.8
80.9
90.8
116.9

1927
__
1928
_
1929________
1930________
1931________

132.3
130.8
132.5
126.0
103.9

January
February
March
Aprii

94.8
96.6
95.6
96.2

M qrpb
April

1918_________
1919_________
1920______
1921_____
__
1922_________

134.4
149.8
168.8
128.3
119.9

1932________
1933________
1934________
1935_______
1936___

86.5
84.1
93.7
100.4
101. 3

Mav
June
July
August
Septem ber..

97.0
98.3
97.4
96.2
97.2

M i^.y

102.1

.Inly
Au post
September. ___

105.9
106.7
108.0
110.7

1923_____
1924_________
1925_________
1926________

124.0

1937________
1938________
1939......... ........
1940............. .

105.3
97.8
95. 2
96.6

October
November
December____

96.2
95.9
97.3

•T^0Ve.rn,l’ei ' ---

113.1
113.1

122.8

132.9
137.4

All
foods
index

Year and month

1940

All
foods
index

1941

97.8
97.9
98.4
100. 6

111.6

ELECTRICITY PRICES,1 DECEMBER 1941
RESIDENTIAL rates for electricity are secured quarterly in March,
June, September, and December from 51 cities. These rates are used
for computing monthly bills in each city for quantities of electricity
which have been selected as representative of average use throughout
the country for each of three combinations of services.
Reports published quarterly for March, June, and September show
only the price changes which occurred during the preceding 3 months.
The December report presents prices effective December 15 in each
of the 51 cities, and a record of changes for the year.
Prices on December 15, 1941

Electricity prices in 1941 again moved downward, continuing the
long-time trend of more than 20 years. Rates reductions occurred in
only 6 of the 51 cities in 1941, the smallest number reported in any
year since 1924. Decreases in average prices in December compared
with a year ago were 1.2 percent for the use of 25 kilowatt-hours and
1.4 percent for 100 kilowatt-hours. Indexes in December for 25
kilowatt-hours and 100 kilowatt-hours were 72.0 percent and 63.9
percent, respectively, of the average for the 3-year period 1923-25.
Indexes of the cost of 25 kilowatt-hours and 100 kilowatt-hours per
month for the 51 cities combined are shown in table 5 for December of
specified years from 1923 through 1937 and for quarterly periods from
1938 through 1941.
i Average prices of electricity for 25, 40, and 100 kilowatt-hours for 1923 through 1938 are shown in Bulletin
No. 664.


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Federal Reserve Bank of St. Louis

519

Retail Prices

T able 5.— Indexes of Retail Prices of Electricity for 51 Cities Combined, December of

Specified Years 1923-37, and March, June, September, and December 1938 to 1941
[1923-25=100]

Date

1923:
1925:
1927:
1929:
1931:
1933:
1935:
1937:
1938:

Lighting
and small
appliances
25 kwh

Lighting
appliances
and refrig­
erator
100 kwh

101.1

101.2

December- ______
December ___ ..
December ____ December ----------December- --------December- ______
December ______
December- --------March___________
J u n e ________ -September_______
December ______

97.3
94.0
89.7
88.3
84.9
80.7
76.0
75.5
75.4
75.1
74.8

97.1
91.5
84.4
77.0
75.1
70.2
67.4
67.3
67.1
66.8
66.6

Date

1939: M arch___________
June. -- -------September_______
December _______
1940: M a rc h __________
June______ ______
September_______
December- ______
1941: M a rc h ------ , ------June________------September- ______
December 1 ___ -

Lighting
and small
appliances
25 kwh

Lighting
appliances
and refrig­
erator
100 kwh

74.6
74.4
74.1
73.7
73.6
73.2
73.0
72.9
72.9
72.9
72.4
72.0

66.3
66.1

65.9
65.6
65.7
65.3
65.0
64.8
64.7
64.7
64.2
63.9

1 Indexes are preliminary.

Details by Cities
Indexes of price changes for each of 51 cities for the use of 25 kilo­
watt-hours and 100 kilowatt-hours for March, June, September, and
December 1941, and December 1940, and monthly bills and average
prices per kilowatt-hour for amounts of electricity representative of
the requirements of 3 residential services on December 15, 1941, are
given in the pamphlet, “Retail Prices,” for December 1941.
Price Changes Between December 1940 and December 1941
Residential rates for electricity remained unchanged in 1941 in all
except 6 of the 51 reporting cities. Lower rates became effective
during the year in the following cities: Philadelphia, Detroit, Wash­
ington, D. C., Houston, Butte, Denver.
The greatest reduction was in Denver, where monthly bills declined
18.1 percent for 250 kilowatt-hours and 13.6 percent for 100 kilowatthours. The smallest reduction was in Washington, D. C.—0.6 percent
for 250 kilowatt-hours and 1.9 percent for 100 kilowatt-hours. In
both cities there was no change in monthly bills for the use of 25
kilowatt-hours. Lower rates affecting all 3 services in Philadelphia,
Detroit, Houston, and Butte resulted in decreases ranging between
1.3 percent for 250 kilowatt-hours in Detroit and 10.7 percent for
25 kilowatt-hours in Butte.
Changes in cost of electricity due to adjustments other than rate
changes occurred in Bridgeport, New Haven, and New York City.
Under a temporary amendment to the rates for Bridgeport and New
Haven, reductions of 40 percent in bills rendered in May, and 25
percent in December, provided an average decrease of about 5.4
percent for the year. In New York City, prices of electricity were
affected by two conditions—(1) slight increases were effective under

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Federal Reserve Bank of St. Louis

520

Monthly Labor Review—February 1942

the fuel clause which provides for additions or deductions from estab­
lished rates per kilowatt-hour when prices of coal advance or decline
beyond specified limits; (2) the city sales tax, which amounted to
3 percent early in the year, was reduced to 2 percent in July and to 1
percent in November. As a result of these conditions, costs for
electricity were about 1.5 percent lower in December 1941 than in
December 1940.
Net monthly bills, average prices per kilowatt-hour, and percentage
change between December 15, 1940, and December 15, 1941, are
shown in the pamphlet, “Retail Prices,” for December 1941.

GAS PRICES,2 DECEMBER 1941
RESIDENTIAL rates for gas are secured quarterly in March, June,
September, and December from 50 cities. Since December 1934*
these rates have been used for computing monthly bills for each city
for quantitiés of gas which approximate the average residential con­
sumption lequirements per month for each of four combinations of
services. In order to put the prices upon a comparable basis, it was
necessary to convert the normal consumption requirements used for
computing monthly bills into an equivalent heating value expressed
in therms (1 therm = 100,000 B. t. u.).
Reports published quarterly for March, June, and September show
only the changes by cities for the preceding 3 months. The December
report presents prices effective December 15 in each of the 50 cities,
and a record of changes for the year.
Prices by Kinds of Gas on December 15, 1941
The composite indexes (1923-25 = 100) covering costs of the kind
of gas sold in each of 50 cities showed decreases between December
1940 and December 1941 of 0.7 percent for 10.6 therms and 0.9
percent for 30.6 therms. Separate weighted indexes for manufactured,
natural, and a mixture of manufactured and natural gas have been
computed from prices for cities using each of the three kinds. These
indexes show the following percentage changes for the year.
nT

10.6
therm s

Manufactured gas (24 cities)________ —0. 9
Natural gas (19 cities)_________ _____ — 1. 3
Mixed manufactured and natural gas
(7 cities)-------------------------------------- - o . i

30.6
therm s

—0. 9
—2 3
_o. 1

The weighted indexes for manufactured gas reflect the decrease in
New York, due to a reduction in the city sales tax, and the rate in^ Average prices of gas for 10.6 therms and 30.6 therms for 1923 through June 1936 are shown in Bulletin


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Federal Reserve Bank of St. Louis

521

Retail Prices

creases in Manchester and Seattle. The decline in the index was
due to the greater weight given to changes in New York City than to
changes in smaller communities.
Table 6 presents composite indexes for each of the 2 services for all
kinds of gas, 50 cities combined, and separate indexes for manu­
factured, natural, and mixed manufactured and natural gas for
December of specified years from 1923 through 1937, and for quarterly
periods from 1938 through 1941.
Details by Cities
Indexes of price changes for each of the 50 cities for the use of 10.6
therms and 30.6 therms for March, June, September, and December
1941, and December 1940, and net monthly bills and average prices
per thousand cubic feet and per therm for each of 4 services, based on
rates effective December 15, 1941, are shown in the pamphlet, “ Retail
Prices,” for December 1941.
T able

6 . — Indexes

of Retail Prices of Gas, December of Specified ) ears, 1923 37, and
March, June, September, and December 1938, 1939, 1940, and 1941
[1923-25 = 100]
30.6 therms, range and automatic water
heater

10.6 therms, range

Date

M anu­
factured, Natural,
1923, 7
All gas, 1923, 40
cities;
50 cities cities;
1941,19
1941, 24
cities
cities

Manu­ Natural,
Mixed
1923, 7
1923, 3 All gas, factured,
1923, 40
cities;
cities; 50 cities cities;
1941,
19
1941, 7
1941, 24
cities
cities
cities
98.5
108.1
108.0
108.3

101.0

94.2
92.1
90.4
89.4

108.3
107.9
104.0
101. 2

98.8
92. 2
92.5
92.4

86.0

89.5
85.8
85.8
90.0

100.9
100.5
100. 5
100. 5

96.0
96.0
96.0
95.8

86.3
83.8
83.4
85.9

89.8
85.6
85.6
89.7

103.9
103.9
102.9
102.9

95.7
95.9
94.4
94.0

107.4
98.6
98.4
98.2

85.7
82.3
82.3
84.5

89.4
84.8
84.8
88.7

103.3
103.1
103. 6
102.3

94.0
90.9
90.6
90.3

98.1
98.3
98.3
98.1

84.1
81.5
81.3
83.7

88.7
84. 5
84.1
87.9

99.2
99. 2
99. 2
99.9

90.2
90.4
90.4
90.2

99.5

101.0

99.7

100.1

99.3
107.1
109.3
119.2

99.3
95.4

98.3
97.2
97.2
96.8

100.0

119. 2
118.8
114.1
112.7

99.3
97.7
98.3
98.4

91.1
88.4

1938' March - ___ . _
J une _______ September- ______
December_______

98.6
98.8
98.8
98.8

100.2

100.7
100.7
100.7

112.7
112.3
112.3
112.3

107.8
107.8
107.8
107.6

85.8
83.4
83.4

1939: M arch—.................
June _ - ___ - Septem ber____
December______

99.3
99.4
99.3
99.8

100.5
100.5
100.5
101.4

116.5
116.5
116.0
116.0

107.5
107.7
107.7
107.4

1940: March ______
J u n e ____ __
September _____
December_______

99.9
98.2
98.3
98.0

101.6
101.6
101.6
101.6

116.0
115.6
116.1
114.9

1941: March_____ - __
June ___
September _ __ _
December1--

97.8
97.8
97.5
97.3

101.6
101.6
101.1

113.4
113.4
113.4
113.4

1931"
19221935:
1937'

99.5

100.2
100.1

December__. ___
D ecem ber_____
December__ ____
D ecem ber___

i Preliminary.


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Federal Reserve Bank of St. Louis

99.2

100.0
100.0

100.7

99.4
98.9

99.6
99.6
99.0
97.0

99.4
98.9

99.5
99.7
99.6

1923- D ecem ber____-1925* Dp,r,ember____
1927- Deeember
1929' December _____

Mixed
1923, 3
cities;
1941, 7
cities

98.2

100.2

86.8

85.1

98.1

522

Monthly Labor Review—February 1942

Price Changes Between December 1940 and December 1941
Changes in the cost of gas to domestic consumers in 1941 were due
to rate changes in 5 of the 50 cities and regular seasonal changes as
provided in rate schedules for 2 cities, one of which also reported a
reduction in the city tax. These cities are as follows:
Rate changes:
M anufactured gas

N a tu ra l gas

M ix e d m anufactured and natural
gas

Manchester
Detroit
Minneapolis
Seattle
Los Angeles
Seasonal and tax changes:
New York—lower rates for manufactured gas in summer months, and
decreases in city tax.
Cincinnati lower heating value of the mixed manufactured and natural gas
served in summer months.

Manufactured gas.— Between December 1940 and December 1941 a
rate increase of approximately 7 percent was shown in Seattle. In
Manchester a new rate schedule replaced the two schedules formerly
available to domestic customers (a general service rate and an optional
rate for customers using gas for automatic water heating). The new
rate increased the cost about 8.5 percent for the use of 10.6 therms,
30.6 therms, and 40.6 therms, and lowered the cost for 19.6 therms by
about 3.5 percent. New York reported the usual substantial summer
reductions in rates for the use of more than 3,000 cubic feet per month.
The city tax in New York was reduced from 3 percent to 2 percent
in July and to 1 percent in November.
Natural gas. Lower rates in Los Angeles resulted in decreases of
about 2 percent to domestic customers. Detroit reported two rate
changes during the year. The first—a decrease in the “ immediate”
rate—provided reductions to about half of the customers by lowering
the costs by 9.9 percent for 10.6 therms to 19.4 percent for 40.6
therms, while costs to those served under the “ promotional” rate
remained unchanged. Later the “ Objective Rate Schedule,” which
included both the “ immediate” and the “ promotional” rates, was
replaced by a single rate providing reductions of about 2 percent
to customers formerly served under the “ immediate” rate. For
customers who had been served under the “ promotional” rate, costs
were increased from 4.4 to 8.4 percent for 19.6 and 40.6 therms.
Mixed manufactured and natural gas.—Lower rates in Minneapolis
provided decreases of from 1 to 2 percent in monthly bills for specified
amounts of gas. Cincinnati reported the usual summer increase
due to a decrease in the heating value of the gas, but rates were
unchanged.
Let monthly bills, average prices per thousand cubic feet and per
therm, and percentages of change from December 1940 through
December 1941 are shown in the pamphlet, “ Retail Prices”, for
December 1941.

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Federal Reserve Bank of St. Louis

Wholesale Prices

WHOLESALE PRICES, DECEMBER AND YEAR 19411
COMMODITY prices in wholesale markets rose sharply during the
second year of World W ar II. Except for a slight reaction in February,
the Bureau of Labor Statistics comprehensive index of nearly 900
price series advanced steadily to a 12-year peak at the end of
the year. From an average of 78.6 percent of the 1926 level for 1940,
the all-commodity index rose more than 11 percent to 87.3 for 1941.
Notwithstanding governmental action to control unwarranted in­
creases, commodity prices in wholesale markets have exceeded the
1937 peak and are at about the level reached late in 1929.
Farm product prices recorded the greatest gain, nearly 22 percent,
from 1940 to 1941. Livestock and poultry advanced more than 32
percent; grains, 13 percent; and cotton, 38 percent. Food prices
increased 16 percent, largely because of sharp advances in prices for
meats, dairy products, and certain imports such as coffee, cocoa, tea,
and pepper. Textile product prices rose nearly 15 percent, mainly
because of marked increases in prices for cotton goods, burlap, and
for certain imported fibers such as hemp, sisal, and jute.
Building materials and chemicals and allied products were about
10 percent higher in 1941 than in 1940. Higher prices for lumber
were largely responsible for the increase in the building materials
index, while marked advances in prices for industrial fats and oils and
for essential chemicals and drugs were primarily responsible for the
increase in the chemicals and allied products group index. Prices for
fuel and lighting materials, housefurnishing goods, and miscellaneous
commodities advanced about 6 percent. Average prices for metals
and metal products rose less than 4 percent as price ceilings on most
primary metals and some scrap materials were established early m
the year by the Office of Price Administration.
The index for raw material prices advanced 16 percent during the
year, largely as a result of the sharp increases in prices for agricultural
commodities. Fully manufactured and partially manufactured com­
modity prices were about 10 percent higher in 1941 than in 1940.
Prices for nonagricultural commodities advanced more than 9 percent
1 More detailed information on wholesale prices is given in the Wholesale Price pamphlet and will be
furnished upon request.


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Federal Reserve Bank of St. Louis

523

524

Monthly Labor Review—February 1942

during the year, while industrial commodity prices increased over 7
percent according to the indexes for the large’groups of “all com­
modities other than farm products” and “all commodities other than
farm products and foods.”
Table 1 shows index numbers of wholesale prices by groups and
subgroups of commodities for 1940 and 1941 and the percentage
changes between the 2 years.
T able

1.—Index Numbers of Wholesale Prices by Groups and Subgroups of Commodities,
1940 and 1941, and Percentage Changes From 1940 to 1941
[1926 = 100]
Year
1940

Percent­
age
change

87.3

78.6

+ 11.1

82.4
76.9
91.6
77.8
82.7
87.3
80.7
67.5
90.4
78.9
108.3
113.5
108.4
97.9
104.7
84.8
92.6
94.2
63.1
29.5
(')

67.7

71.3
77.6
78.3
63.1
73.3
63.5
100. 8
107.6
91.9
92.5
99.9
73.8
85.2
71.4
62.3
29.5
46.8

+21.7
+13.1
+32.4
+17.7
+16.0
+12.5
+3.1
+7.0
+23.3
+24.3
+7.4
+5.5
+18.0
+5.8
+4.8
+14.9
+8.7
+31.9
+1.3

96.6
90.7

85.7
74.5

+12.7
+21.7

Fuel and lighting materials. 76.2
Anthracite_____ _____ 82.7
Bituminous coal. . . .
104.3
Coke___ .. _
119.3
Electricity__
(2)
Gas______ _
(2)
Petroleum and products_______
57.0

71.7
78.9
97.6

110.2

+6.3
+4.8
+6.9
+8.3

50.0

+14.0

Year
1941

Group and subgroup
All commodities __ _

_

Farm products________
Grains_______ _ ___
Livestock and poultry.
Other farm products...
Foods.. ..
...
Dairy products______
Cereal products______
Fruits and vegetables. _
M eats______
_ _
Other foods.._ ____
Hides and leather products.
Shoes.
Hides and skins__ _ _
Leather..
Other leather products.
Textile products__ ._
Clothing________
Cotton goods
Hosiery and underware.
Rayon. . . .
Silk_____
Woolen and worsted
goods__ _________
Other textile products.

Metals and metal products
Agricultural
implements..
Farm machinery...
Iron and steel__

68.0

69.2

66.1

74.5
82.0

0

99.4

95.8

+3.8

93.5
94.5
96.4

92. 5
93.7
95.1

+ 1.1
+ .9
+1.4

Group and subgroup

Metals and metal prod­
ucts—G ontinued.
Motor vehicles______
Nonferrous metals___
Plumbing and heating.
Building materials_______
Brick and tile_______
Cem ent..___________
Lumber____________
Paint and paint mate­
rials______________
Plumbing and heating.
Structural steel______
Other building mate­
rials______________
Chemicals and allied prod­
ucts__________ _______
Chemicals__________
Drugs and pharmaceu­
ticals_____________
Fertilizer materials___
Mixed fertilizers_____
Oils and fats________
Housefurnishing goods____
Furnishings_________
Furniture___________
Miscellaneous___________
Automobile tires and
tubes_____________
Cattle feed__________
Paper and pulp____ __
Rubber, crude______
Other miscellaneous...
Raw materials___________
Semimanufactured articles.
Manufactured products___
All commodities other than
farm products_________
All commodities other than
farm products and foods.

Year
1941

Year Percentage
1940 change

103.3
84.4
84.8
103.2
93.7
92.0
122.5

96.7
81.3
80.4
94.8
90.5
90.8
102.9

+ 6.8
+3.8
+5.5
+8.9
+3.5
+ 1.3
+19.0

91.4
84.8
107.3

85.7
80.4
107.3

+6.7
+5.5

98.3

93.3

+5.4

84.6
87.2

77.0
85.1

+9.9
+2.5

105.1
73.5
76.0
77.6
94.3
99.9
88.4
82.0

88.9
69.4
73.8
44.3
88.5
94.7
81.8
77.3

+18.2
+5.9
+3.0
+75.2
+ 6.6
+5.5
+ 8.1
+ 6.1

61.0

57.8
87.8
91.7
41.5
84.1
71.9
79.1
81.6

+5.5
+15.3
+7.1
+ 11.1
+4.4
+16.1
+9.9
+9.2

88.3

80.8

+9.3

89.0

83.0

+7.2

101.2

98.2
46.1
87.8
83.5
86.9
89. 1

0

1No data.
2 Data not yet available.

Index numbers for the groups and subgroups of commodities for
selected years are shown in table 2.


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Federal Reserve Bank of St. Louis

525

Wholesale Prices

T able 2. —Index Numbers of Wholesale Prices by Groups and Subgroups of Commodities
[1926=100]
Group and subgroup

1941

1940

1939

1938

1937

1933

1931

1929

87.3

78.6

77.1

78.6

86.3

65.9

73.0

95.3

Farm products _
______ __________
Grains
__
_ __
Livestock and poultry__ _ ____
Other farm products- . -------- - -----

82.4
76.9
91.6
77.8

67.7
66.1

65.3
58.6
72.2
62.6

68.5
60.6
79.0
63.9

86.4
98.3
95.5
77.2

51.4
53.1
43.4
55.8

64.8
53.0
63.9
69.2

104.9
97.4
106.1
106.6

Foods
_ ____ _ __ ____________
Dairy products
__ ___
Cereal products
_ . ____
Fruits and vegetables __ ___- ___
Meats
__ __ - - - _______ Other foods
__-- - ______

82.7
87.3
80.7
67.5
90.4
78.9

71.3
77.6
78.3
63.1
73.3
63.5

70.4
69.5
74.8
62.0
77.2
64.1

73.6
72.8
78.4
58.2
83.3
67.5

85.5
83.1
87.6
74.2
99.1
75.6

60.5
60.7
75.0
61.7
50.0
61.1

74.6
81.8
73.1
72.4
75.4
69.8

99.9
105. 6

Hides and leather products __
___ - -Shoes
_ _
__ - Hides and skins
__
__ __ __
Leather
- ___ - - - ___
Other leather products
_ - ____ __

108.3
113.5
108.4
97.9
104.7

84.6
87.5
97.1

73.6
83.7
98.5

104.6
105.0
113.5
96.8
102.6

80.9
90.2
67.1
71.4
81.1

86. 1

102. 6

92.8

107.6
91.9
92.5
99.9

109.1
106.3
112.7
113.2
106.4

Textile products. _
_ _ _ __ ___
Clothing
__ _
________
Cotton goods
- - _____ ___ ___
Hosiery and underw ear__ ______ ___
Rayon
__________________
Silk
- ____________
Woolen and worsted goods - -----------Other textile products
_ - - _-

84.8
92.6
94.2
63.1
29.5

73.8
85.2
71.4
62.3
29.5
46.8
85.7
74.5

69.7
82.0
67.2
61.4
28.8
46.1
79.8
69.2

66.7
82.9
65.4
60.3
28.9
29.6
77.4
65.5

76.3
87.9
84.3
65.1
33.3
32.7
91.1
68.4

64.8
72.2
71.2
58.9
33.0
29.8
69.3
72.5

Fuel and lighting materials _
___
Anthracite
_ __ ____
_ __
Bituminous coal
____ _ _ _ __
Coke
_ __ ___
Electricity _
_______ ________
Gas
_
__
Petroleum and products___

78.2
82.7
104.3
119.3

71.7
78.9
97.6

76.5
78.0
99.0
104.8
84.9

57.0

74.5
82.0
50.0

73.1
75.8
97.5
105.6
78.6
84.1
52.2

55.9

77.6
77.8
98.6
103.1
80.4
82.4
60.5

99.4
Metals and metal products.
____ Agricultural implements — _ _ - ----- 93.5
94.5
Farm machinery_________
96.4
___________
Iron and steel _
Motor vehicles
__ _ - - _______ 103.3
84.4
Nonferrous metals
_______ ___
84.8
Plumbing and h eatin g __________

95.8
92.5
93.7
95.1
96.7
81.3
80.4

94.4
93.4
94.6
95.8
93.4
78.0
79.2

95.7
95.5
96. 9
98.6
95.4
72.8
78.5

_ _ ______ _ 103.2
Building materials _ ___
Brick and tile
___ _ _ _ _ ____ 93.7
Cement
____
______ ___ 92.0
122.5
Lumber
__ _____
91.4
Paint and paint materials____
____
84.8
Plumbing and heating__ _ __ __
107.3
Structural steel
__
_
98.3
Other building materials _ ___ __

94.8
90.5
90.8
102.9
85.7
80.4
107.3
93.3

90.5
91.4
91.3
93.2
82.8
79.2
107.3
90.3

90.3
91.0
90.3
87.4
81.3
78.5

84.8
Ch e mi rial.«: and allied products____________
Chemicals
_ _ _______ ___ 87.2
Drugs and pharmaceuticals__ ____ _ 105.1
73.5
Fertilizer materials ---- ------- _ __
Mixed fertilizers
__
____ _ ___ 76.9
Oils and fat?—_ ------- ___ ----- -- -- 77.6

77.0
85.1
88.9
69.4
73.8
44.3

76.0
84.7
78.2
67.9
73.0
48.4

77.0
86.4
79.0
67.0
72.6
49.6

94.3
99.9
88.4

88.5
94.7
81.8

86.3
91.1
81.3

82.0
61.0

98.2
46.1
87.8

77.3
57.8
87.8
91.7
41.5
84.1

83.5
86.9
89.1
88.3
89.0

All commodities

- _____________ ____

Housefurnishings goods _____ ____ _
Furnishings _____ _
___ __
Furniture
__ _ ___
___ —
Miscellaneous
__
____
Automobile tires and tubes _ _ __
Cattle feed
Paper and pulp
Rubber, crude
_
____
Other miscellaneous
______ ___
ft.aw materials
- - ___
Semimanufactured articles __
_
_
Finished products
__
__
All commodities other than farm products—All commodities other than farm products and

1 Data not yet available.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

96.6
90.7

(0
(0

101.2

68.0

69.2

100.8

110.2

95.6

102.2

86.1

111.0

92.7

93.7
60.2
86.2

101.4

88.0

97.8
109.1
93.9

75.1

90.4
90.0
98.8
88. 5
68.4
82.7
88.3
93.1

66.3
82.2
82.8
77.9
94.3
97.5
41.0

67.5
91.1
84.6
82.4
98.8
98.7
39.5

83.0
90.1
91.3
84.6
94. 5
93.1
71.3

95.7
94.0
95.6
98.2
89.3
89.6
78.8

79.8
83.5
87. 7
78.6
83.2
59.6
67.1

84. 5
92.1
93. 5
83.3
89.5
61.9
84.7

100.5
98. 7

95.2
93.5
89.0
99.7
83.4
78.8
113. 2
99.1

77.0
79.2

79.2
83.6
74.8
69.5
79.4
84.7
83.1
84.8

95.4
94.3
89.0
93. 8
94.9
95.0
98.1
97.7
94.0
99.7

84.9
82.2

94.3
93.6
95.0

66.3
75.9
66.1

60.9
41.2
43.7
68.2

88.1

70.7
73.3
67.1
83.1
82.7

94.9
100.0

106.1
95.0

69.0
73.8
76.8

54.6
62.9
64.0
39.4

79.3
90.2
59. 2
76.6
80. 5
48.9

90.8
82.8

89.7
93.4
85.9

75.8
76.6
75.1

88.0

74.8
59.5
83.3
82.4
37.2
82.6

73.3
57.7
76.9
85.0
30.5
81.5

77.8
55.8
110.5
91.7
40.5
84.7

62.5
42.1
57.9
76.6

69.8
46.0
62.7
81.4

76.2

12.2

12.8
88.0

88.9
42. 3
98. 4

71.9
79.1
81.6
80.8

70.2
77.0
80.4
79.5

72.0
75.4
82.2
80.6

84.8
85.3
87.2
86.2

56.5
65.4
70. 5
69.0

65.6
69.0
77. 0
74.6

97.5
93. 9
94. 5
93. 3

83.0

81.3

81.7

85.3

71.2

75.0

91.8

86.8

82.6
88.2
86.6

72.1
86.8

1

66.8
95.6

95. 2
89.0

82.6
54.5
121.6

526

Monthly Labor Review—February 1942

From tlie 5-year low point of August 1939 immediately preceding
the outbreak of the war to December 1941, prices for nearly all types
of commodities have risen substantially. Among the outstandingincreases were 55 percent for farm products; 35 percent for foods and
textile products; more than 20 percent for hides and leather products,
building materials, and chemicals and allied products; more than 15
percent for housefurnishing goods and miscellaneous commodities;
10 percent for metals and metal products; and 8 percent for fuel and
lighting materials. Since August 1939 prices for industrial fats and
oils have risen 151 percent; for cattle feed, 82 percent; grains, 77
percent; cotton goods, 60 percent; drugs and pharmaceuticals, 64
percent; livestock and poultry, dairy products, lumber, “ other farm
products,” “ other foods,” and “ other textile products,” from 40 to
55 percent; and for cereal products, fruits and vegetables, meats,
leather, clothing, woolen and worsted goods, motor vehicles, paper
and pulp, and crude rubber, 20 to 35 percent.
Further advances in wholesale market prices for domestic agri­
cultural products dominated the commodity markets in December,
while prices for most industrial commodities, except chemicals and
allied products, were comparatively steady. Over the month the
Bureau’s general index of nearly 900 wholesale price series rose 1.2
percent, to 93.6 percent of the 1926 level—the peak since October 1929.
In the past year the index rose 17 percent, to nearly 25 percent above
the pre-war level of August 1939.
Average prices for farm products in wholesale markets rose 4.5
percent in December, primarily because of increases of more than 7%
percent for grains and livestock. In the past year farm product prices
have risen nearly 36 percent and are higher than at any time since
April 1930.
Food prices in wholesale markets rose 1.3 percent in December, 23
percent higher than a year ago. Increases of 5 percent for meats and
4 percent for cereal products contributed largely to the advance. In
addition, quotations were higher for coffee, lard, molasses, oleomar­
garine, pepper, tea, canned salmon, and for vegetable oils. Although
the fruit and vegetable subgroup index dropped more than 5 percent
because of sharp declines in prices for bananas and oranges, quota­
tions were higher for most canned and dried fruits and for lemons.
Prices for butter, cheese, eggs, and mutton were lower in December
than in November.
File index for hides and leather products increased 0.6 percent to a
13-year peak. Shoes and leather advanced slightly, while substan­
tially higher prices were reported for goatskins, harness, and luggage.
An increase of 2 percent for cotton goods, the prices nearly all of
which are geared to quotations on raw cotton under a sliding scale
ceiling, featured textile product markets in December. Prices for

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Federal Reserve Bank of St. Louis

527

Wholesale Prices

imported fibers sucli as jute and liemp declined. The textile products
group index, 91.8 percent of the 1926 average, reached its highest
point since the spring of 1929.
Weakening prices for fuel oil and gasoline from the Pennsylvania
fields, for kerosene, and for bituminous coal in some areas caused the
fuel and lighting materials group index to drop 0.5 percent.
The index for the metals and metal products group remained un­
changed at 103.3 percent of the 1926 level.
Continued advances in prices for paint materials and for lumber,
brought the building materials group index to the highest point in
over 18 years. Increases of more than 10 percent occurred in prices
for rosin and shellac, while linseed oil rose nearly 8 percent. Tur­
pentine declined 4 percent during the month.
An advance of 9.7 percent for industrial fats and oils was largely
responsible for an increase of 1.7 percent in the chemicals and allied
products group index. Prices for glycerine and ergot declined in
December.
Minor increases were reported in prices for office chairs and desks
and for some types of household furniture. Furnishings, such as
cotton blankets and window shades, also averaged higher than a
month ago.
Average wholesale prices for cattle feed rose 3 percent and paper
and pulp advanced 0.3 percent. Higher prices were also reported for
soap and matches.
Percentage comparisons of the December 1941 level of wholesale
prices with December 1940, November 1941, and the low point of
1939, with corresponding index numbers are given in table 3.
T able 3.— Index Numbers of Wholesale Prices and Percentage Changes by Groups and

Subgroups of Commodities for Specified Periods
[1926 = 100]

Group and subgroup

All co m m odities------------ --F arm p ro d u c ts----------------

Grains...........................
Livestock and poultryOther farm products...
F o o d s ..-------- ---------------------

Dairy products............
Cereal products.......... .
Fruits and vegetables..
Meats...........................
Other foods................ .
H id es a n d le a th e r p ro d u cts.

Shoes..................... ........
Hides and skins--------Leather..........................
Other leather products.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

De­
cem­
ber
1941

93.6

Per­
cent­
No­
age
vem­ change
ber from a
1941 month
ago
92. 5

+1.2

Per­
cent­
age
change
from
August
1939

Per­
cent­
De­
age
cem­ change
ber from a
1940
year
ago

Au­
gust
1939

+17.0

75.0

+24.8

80.0

94.7
91.0
97.4
93.4

90.6
84.3
90.6
91.7

+4.5
+7.9
+7.5
+1.9

69.7
67.0
72.7

61.0
51.5

68.1

+35.9
+35.8
+34.0
+37.2

66.0
60.1

+55.2
+76.7
+47.6
+55.4

90.5
95.5
89.3
73.8
95.3
89.2

89.3
96.3
85.9
77.9
90.8
89.0

+1.3

73.5
84.2
74.3
61.2
77.0
67.0

+23.1
+13.4
+20.2
+20.6
+23.8
+33.1

67.2
67.9
71.9
58.5
73.7
60.3

+34.7
+40.6
+24.2
+26.2
+29.3
+47.9

114.8
120.7
115.9
101. 3

114.1
120.5
114.0

92.7

+1.7

+1.2

+12.2
+12.6
+16.7
+7.7
+13.1

100.8

111.5

102.3
107.2
99.3
94.1
99.7

+23.8
+19.7
+50.1
+20.6
+16.2

112.8

101.1

-.8

+4.0
-5 .3
+5.0

+.2
+.2

77.2
84.0
97.1

528

Monthly Labor Review—February 1942

T able 3.— Index Numbers of Wholesale Prices and Percentage Changes by Groups and

Subgroups of Commodities for Specified Periods— Continued
[1 9 2 6 = 1 0 0 ]

G ro u p a n d s u b g ro u p

Textile products
_ .
C lo th in g _______ ______
C o tto n goods___ _____
H o siery a n d u n d e rw e a r
R a y o n ___________ .
S ilk ___________
W oolen a n d w orsted goods
O th e r te x tile p ro d u c ts .
F u el a n d lighting m a terials _
A n th ra c ite ______________
B itu m in o u s coal_________
C o k e _________
E le c tric ity ....................
G as

P e r­
c e n t­
age
ch an g e
from a
m o n th
ago

D e­
cem ­
b er
1941

N ovem
ber194

91. 8
98.4
107.5
67.0
30.3

91.1
97.9
105.4
67.0
30.3

102.7
96.2

102. 6

96.0

+ . 2

78.4
85. 3
108.0
122. 2

78 8
85.3
108.2

j)
0

122.2

0

w
0)

_l_n r
-4- FJ
+ 2.0
0
0

+•

1

-2

0)

P e tro le u m a n d p ro d u cts

59.8

M etals a n d m e tal products
A g ric u ltu ra l im p le m e n ts
F a rm m a c h in e ry . __
Iro n a n d s t e e l ____
M o to r vehicles
N o n ferro u s m e tals
P lu m b in g a n d h e a tin g

103.3
96.4
97.5
97.0
112.4
84.8
89.1

103 3
96. 3
97.4
97.1
112.3
84.8
87.9

B u ild in g m a te ria ls ____
B ric k a n d t i le _____
C em en t
L u m b e r_____
P a in t a n d p a in t m a terials
P lu m b in g a n d h e a tin g
S tru c tu ra l steel
O th e r b u ild in g m a te ria ls

107. 8
96. 7
93.4
129.4
96.5
89.1
107. 3
102.5

107, 5
96.6
93.1
128.7
95. 3
87.9
107.3
103.2

4- 3
4- 1
4- 3
4- 5
+ 1 .3
+ 1 .4

C h em icals a n d allie d products
C hem icals . .
D ru g s a n d p h a rm a c e u tic a ls
F e rtiliz e r m a terials
M ixed fertilizers
Oils a n d f a ts ___

91.3
.6
123.0
77.8
81. 2
101.9

89.8
2
123.2
77.3
79.6
92.9

+ 1.7
4- 3

H o u se fu rn ish in g goods
F u rn is h in g s . .
F u r n itu r e ______

.1
105.6
96.6

M is c e lla n e o u s ...
A u to m o b ile tire s a n d tu b e s
C a ttle f e e d ...
P ap er and p u l p ...
R u b b e r, c ru d e .
O th e r m iscellaneous

87.6
67.4
124.4
102.5
46.3
92.4

R aw m a te ria ls ...
S em im an u fa ctu red articles
M an u factu red products
A ll com m odities o ther th a n farm products
All com m odities o th e r th a n farm products a n d
foods- ___ __ _

101

92.3
90.1
94.6
93.3

88

100.6

105.2
95.8

-

1 .0
0
+ .1
+ .1

-.

1

+ . 1
0

+

1 .4

0
7

J2

_|+_2. 06
4- S
4^ 4

_l_ A

67.4
120.7

4-. 0
0
4- 0.1

92! 2

+.2

102.2

74 8
85 5
74 Q
60.’ 7
29 5
4 2 !5
89.0
74.6
71.7
80 9
100.4
113 6

P e r­
c e n t­
age
change
from a
y ea r
ago
7

1 00

4 “lo. 1
I AO er
1_1 0 4

+

2 .7

78.2
49.5
97.6
92.6
93.9
QS 4
ino 3
83.4
80.5

67. 8
81. 5
65. 5
28. 5
44.3

U

63. 7

10 0

72. 6
72.1
96. 0

+ 5 .4
4“/. D
+ 7 .6

104.2
75.8

P e r­
c e n t­
age
change
from
A u g u st
1939
+ 3 5 .4
+ 2 0 .7
+ 6 4 .1
+ 8 .9
+ 6 .3
+ 3 6 .0
+ 5 1 .0
+ 8 .0
+ 1 8 .3
+ 1 2 .5
+ 1 7 .3

86 .7

+ 2 0 .8

1^ Q

4 -A I1
~ \~ o . 0

1

4“1.

~ T lZ . I

4"A* <
4“i "* t

01. /

+15. 7

93. 2
y«5. 0
94. 7
95.1
92. 5
74. 6
79. 3

+ 1 0 .8
+ 3 .1
+ 3 .0
+ 2 .0
+ 21. 5
+ 1 3 .7
+ 1 2 .4
+ 2 0 .3
+ 6 .9
+ 2 .3
+ 4 3 .6
+ 1 7 .5
+ 1 2 .4

99 3
91 1
90 9
118 8
85.4
80.5
l n7 3
94.5

4~o- 0
~j~o. 1
+ 2 .8
+ 8 .9
-lion
4“I'h l
Q 0
%
445.

1U

89. 6
90. 5
91. 3
90.1
82.1
79. 3
107. 3
89.5

77.7
85 4
96.2
70.0
74 3

-L IT 0
^
4^1/.
4 -0 . 7
+ 2 7 .9
4~I1.1
+9. 3
+140. 3

83.8
77.1
65.5
73.1
40.6

+ 2 3 .0
+ 5 .7
+ 5 9 .5
+ 1 8 .8
+ 1 1 .1
+ 151.0

+ 11.0
+ 1 7 .5

85.6
90.0
81.1

+ 1 8 .1
+17. 3
+ 1 9 .1

+ 1 3 .3
+ 1 5 .6
+ 3 8 .1
+ 1 0 .1
+ 8 .4
+ 1 1 .6

73.3
60.5
68.4
80.0
34.9
81.3

+ 1 9 .5
+ 1 1 .4
+ 8 1 .9
+ 2 8 .1
+ 32. 7
+ 1 3 .7

66.5
74.5
79. 1
77.9

+ 3 8 .8
+ 20. 9
+19. 6
+ 1 9 .8

80.1

+ 1 7 .0

88 9 4110
“ io . 7
t

77. 0
58.3
yo.

l

73. 6

89.7
93.8
92.7

4 1“. ‘iA
+ ■ 6

82+

+ 2 5 .4
+ 1 1 .6
+ 1 4 .3
+ 1 3 .6

93.5

+ . 2

84.1

+ 1 1 .4

4 -.

A u­
g u st
1939

+ 1 5 .4

73.4

77.5
60.4

88

D e­
cem ­
b er
1940

y

7 4.2

0

+ 1 4 .5

1 D a ta n o t y e t available.

Index Numbers by Groups of Commodities
Index numbers of wholesale prices by commodity groups for
selected years from 1926 to 1941, inclusive, and by months from
December 1940 to December 1941, inclusive, are shown in table 4.


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Federal Reserve Bank of St. Louis

529

Wholesale Prices
T able 4.-—Index Numbers of Wholesale Prices by Groups of Commodities
[1926=100]

Y ear a n d m o n th

y y ears:
1926 ____________
1929
________
1932 ........................
1933_____________

H ides T e x ­
an d
F a rm
tile
le
a th e r p ro d ­
F
oods
p ro d ­
p ro d ­ u cts
u c ts
u c ts

M eta ls B u ild ­
an d
ing
m e tal m a te ­
p ro d ­ rials
u cts

F u el
an d
lig h t­
ing

C h e m ­ H ouse
icals
fu r­
and
n is h ­
allied
ing
p ro d ­ goods
u c ts

M is ­
cella­
neous

A ll
com ­
m o d i­
ties

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

1 0 0 .0

104.9
48.2
51.4

99.9
61.0
60.5

109.1
72.9
80.9

90.4
54.9
64.8

83.0
70.3
66.3

100.5
80.2
79.8

95.4
71.4
77.0

94.0
73.9
72.1

94.3
75.1
75.8

82.6
64.4
62.5

95. 3
64. 8
65. 9

1937 ___________
1938 ____ : ______
1939 ___________
1940 .
_______
1941 ___________
y m o n th s:
1940:
D e c e m b e r___
1941:
J a n u a r y _____
F e b r u a r y ... .
M a rc h . . . .
A pril
_
M a y . __

86.4
68.5
65.3
67.7
82.4

85.5
73.6
70.4
71.3
82.7

104.6
92.8
95.6

77.6
76.5
73.1
71.7
76.2

95.7
95.7
94.4
95.8
99.4

95.2
90.3
90.5
94.8
103.2

82.6
77.0
76.0
77.0
84.6

89.7

108.3

76.3
66.7
69.7
73.8
84.8

86.3
88.5
94.3

77.8
73.3
74.8
77.3
82.0

86.3
78.6
77. 1
78. 6
87.3

69.7

73.5

102.3

74.8

71.7

97.6

99.3

77.7

88.9

77.3

80.0

71.6
70.3
71.6
74.4
76.4

73.7
73.5
75.2
77.9
79.5

102.4

75.2
76.4
78.4
81.0
83.0

72.1
72.1
72.0
72.9
75.6

97.7
97.6
97.7
97.9
98.1

99.6
99.3
99.5

78.6
78.5
79.8
81.8
83.6

89.0
89.1
89.5
90.4
91.4

77.1
76.9
77.6
78.6
79.6

80.8
80.6
81. 5
83.2
84.9

Ju n e
J u ly _______
A u g u st
__
S e p te m b e r . . .
O ctober ___
N ovem ber _ .
D e c e m b e r___

82.1
85.8
87.4
91.0
90.0
90.6
94.7

83.1
84.7
87.2
89.5
88.9
89.3
90.5

84.5

77.9
78.5
79.0
79.2
79.6
78.8
78.4

98.3
98.5
98.6
98.6
103.1
103.3
103.3

83.8
85.2

93.1
94.4
95.4
97.2
99.5

80.6
82.0
83.7
85.1
86.4
87.3
87.6

88.8

1 0 0 .8

1 0 1 .6
1 0 2 .6

103.9
106.4
107.8
109.4
1 1 0 .2

111.3
1 1 2 .6

114.1
114.8

8 6 .2

88.3
89.7
90.9
91.1
91.8

1 0 0 .1

100.4
1 0 1 .0

103.1
105.5
106.4
107.3
107.5
107.8

8 6 .8

8 6 .0

87.4
89.7
89.8
91.3

1 0 0 .6
1 0 1 .1

87.1

90. 3
91.8
92.4
92.5
93.6

The trend in prices of raw materials, semimanufactured articles,
manufactured products, commodities other than farm products, and
commodities other than farm products and foods for specified years
and months since 1926 is shown in table 5.
T able 5.—Index Numbers of Wholesale Prices by Special Groups of Commodities
[1926 = 100]

All
com­
mod­
ities
other
than
farm
prod­
ucts

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

Year and month

B y years:
_______ 100.0 100.0 100.0 100.0
1926
97.5 93.9 94.5 93.3
1929
1932
_______ 55.1 59.3 70.3 68.3
1933
56.5 65.4 70.5 69.0

100.0
91.6
70.2
7.1.2

86.2
80.6
79.5
80.8
88.3

85.3
81.7
81.3
83.0
89.0

82.1

84.1

Raw
Year and month mate­
rials

1937
1938
1939
1940
1941

Semimanufactured
arti­
cles

Man­
ufac­
tured
prod­
ucts

___ 84.8 85.3 87.2
_____ 72.0 75.4 82.2
70.2 77.0 80.4
71.9 79.1 81.6
______________________
83.5 86.9 89.1

B y months:
1940:
December___ 73.6

80.7


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Federal Reserve Bank of St. Louis

82.8

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

Raw
mate­
rials

Semimanulactured
arti­
cles

Man­
ufac­
tured
prod­
ucts

All
com­
mod­
ities
other
than
farm
prod­
ucts

B y months—Con.
1941:
J a n u a ry ----February
March--------April______
M ay ______

74.6
74.0
75.3
77.5
79.7

81.3
81.6
83.4
85.1
86.4

83.5
83.5
84. 2
85.5
87.1

82.7
82.7
83. 6
85.0
86.6

84.3
84.4
84.9
85. 9
87.4

J u n e _____ J u ly _______
A u g u s t-----September—
October November___
December___

83.6
86.1
87.6
90.0
89.7
90.2
92.3

87.6
87.9
89.5
90.3
89.9
89.7
90.1

88.6
90.1
91.5
92.8
93.9
93.8
94.6

88.0
89.3
90.7
91.9
92.8
92.7
93.3

88. 6
89.7
90.8
91.6
93.4
93.5
93.7

Trend o f Employment and Unemployment

SU M M A RY

OF

REPO RTS OF EM PLO Y M EN T
D E C E M B E R 1941

FO R

Total Nonagricultural Employment
TOTAL civil nonagricultural employment showed a gain of 207,000
workers between November and December, bringing the total number
employed to 40,963,000. This was the highest level on record,
exceeding the December 1940 total by 2,802,000 and the December
1929 figure by 5,047,000. These figures do not include CCC enrollees,
workers on WPA or NYA projects, nor the armed forces. Employ­
ment on the work-relief programs was 1,828,000 in December.
F h e of the major industrial groups covered showed declines in
employment over the month interval, namely, contract construction;
manufacturing; transportation and public utilities; finance, service,
and miscellaneous; and mining. The two groups showing gains were
trade and Federal, State, and local government. The increase in
trade reflected the hiring of temporary personnel to handle the holiday
business in retail stores, and the increase in Government employment
was due in large part to temporary expansion of Post-Office personnel.
A comparison with December of last year showed substantial gains
in all of the major groups as follows: Manufacturing, 1,599,000;
Federal, State, and local government, 423,000; trade, 256,000; trans­
portation and public utilities, 248,000; finance, service, and miscel­
laneous, 124,000; contract construction, 100,000; and mining, 52,000.
Industrial and Business Employment
Gains in employment between mid-November and mid-December
were reported by 68 of the 157 manufacturing and by 8 of the 16 nonmanufacturing industries regularly surveyed by the Bureau of Labor
Statistics. Pay-roll increases were reported by 109 of the manufac­
turing and 12 of the nonmanufacturing industries.
The decrease of 37,000 wage earners in all manufacturing industries
combined was caused largely by a sharp reduction in employment in
automobile plants, as passenger car production was cut during the
latter part of December, and by a greater-than-seasonal decline in the
canning and preserving industry. These decreases were partly offset
530

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T ren d o f E m p lo y m e n t a n d U n e m p lo y m en t

531

by continued gains in war industries and by a sharp rise in the slaughter­
ing and meat-packing industry.
Despite the decline in manufacturing employment, there was a
gain of 2.9 percent, or $9,113,000, in weekly pay rolls.
The employment index for all manufacturing industries combined
in December stood at 134.3 percent of the 1923-25 average, and the
pay-roll index at 170.2. Compared with December 1940, factory
wage-earner employment had increased by 15.6 percent (1,427,000),
and corresponding weekly wages by 39.1 percent ($90,573,000).
The larger increase in pay rolls than in employment reflected overtime
premiums, wage-rate increases, and expansion in working liouis.
Among the nonmanufacturing industries, retail trade showed a
seasonal increase of 9.5 percent between mid-November and midDecember, bringing the index for that industry to the highest Decem­
ber level on record. Substantial employment declines were reported
for building construction, dyeing and cleaning, quarrying and nonmetallic mining, and anthracite mining. The increases and decreases
in the remaining nonmanufacturing industries did not exceed 0.5
percent in any industry.
A preliminary report of the Interstate Commerce Commission for
class I steam railroads showed an employment decrease of 1.5 percent
between November and December, the total number employed in
December being 1,184,536. Corresponding pay-roll figures for
December were not available when this report was prepared. For
November, they were $192,724,101, a decrease of $14,251,885 since
October.
Hows and earnings.—The average hours worked per week by man­
ufacturing wage earners were 41.2 in December, an increase of 2.3
percent since November. Corresponding average hourly earnings
were 78.7 cents, a gain of 0.8 percent over the preceding month. The
average weekly earnings of factory wage earners (both full and parttime combined) were $33.69, an increase of 3.3 percent since N ovember.
Of the 16 nonmanufacturing industries regularly surveyed, 13 re­
ported increases in average weekly earnings. Of the 14 nonmanu­
facturing industries for which man-hours are available, 12 showed
increases in average hours worked per week and 8 showed gains in
average hourly earnings.
Wage-rate increases averaging 7.4 percent and affecting approx­
imately 238,000 wage earners were reported by nearly 600 manufac­
turing plants out of a reporting sample of approximately 34,000 plants
employing about 7,800,000 wage earners. As the Bureau s survey
does not cover all establishments in an industry and furthermore, as
some firms may have failed to report wage-rate changes, these figures
should not be construed as representing the total number of wage
changes occurring in manufacturing industries.
438471— 42------ 18


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532

M o n th ly L a b o r R e view — F e b ru a ry 1 9 4 2

Employment and pay-roll indexes and average weekly earnings for
November and December 1941 and December 1940 are given where
available in table 1 for all manufacturing industries combined, for
selected nonmanufacturing industries, for water transportation, and
for class I railroads.
1 —Employment, P ay Rolls, and Earnings in A ll Manufacturing Industries
Combined and in Nonmanufacturing Industries, November and December 1941 and
December 1940

T able

[Preliminary figures]
Employment index
Industry

All manufacturing industries com­
bined 1 _____________ .
Class I steam railroads 2..............
Coal mining:
Anthracite L . ....... .................
Bitum inous 4______ ___ __
Metalliferous mining 5_______ ..
Quarrying and nonmetallic min­
ing—
Crude-petroleum production____
Public utilities:
Telephone and telegraph 6___
Electric light andpower 6____
Street railways and busses 6 8__
Trade:
Wholesale 8_______
R etail 6___ _________
Hotels (year-round) *to____. . . .
Laundries 4_____ ____
Dyeing and cleaning 4_______
Brokerage 11__ _________
Insurance 11___________
Building construction u________
W ater transportation 1S. .. .

Pay-roll index

Average weekly earnings

No­
No­
De­
De­
De­
De­
De­
No­
De­
cember vem­
cember cember vem­
ber
ber cember cember vember cember
1941
1940
1941
1940
1941
1941
1940
1941
1941
0 9 23-25=i 00)

134.3

134.8

116.2

a s 35-39=1 00)

116.1 117.8 100.5
( 929=10 0)
49.1
50.2
50.8
95.4
95.1
90.1
79.5
79.5
72.2

as 23-25=1 00)
170.2

165.4

122.4

as 35-39=1 00)

(3)

0)
(3)
a 929=10 0)

$33.69

$32. 80

(3)

(3)

$27.89
(3)

35.9
119.6
90.9

41.8
116.3
89.8

42.7
91.4
72.8

24.05
33.47
36.20

27. 38
32. 62
35. 74

27.60
27.12
31.41

50.8
61.0

52.6
60.9

45.4
60.7

56.0
64.9

57.5
64.2

42.4
55.9

27.87
39. 37

27. 66
38. 79

23.42
33. 96

89.6
93.3
70.4

90.1
93.4
70.2

79.7
91.3
68.4

124.1
116.3
80.1

118.3
115.2
78.2

103.5
106.0
73.1

2 33.83
2 38. 00
2 37. 14

2 32.08
2 37.60
2 36. 35

231. 88
2 35. 37
2 34.91

96.5

96.3
103.0
96.1
108.9
117.2
- 1.2
(12)
- 2.8
77.4

92.5
108.1
92.6
100.3
103.3
-9 .5
+2.4
+ 2.1
76.2

92.7
107.9
93.5
102.7
88.5
+ 1.2
+1.5
- .7
«

91.6
83.4
98.5
97.3
93.2
84.1
101.9
89.2
93.0
75.8
- . 5 -5 .7
- .4 +5.2
-5 .1 +17.0
(3)
(3)

2 33. 75
2 21. 79

2 33.44
2 21.88

2 31.25
2 20. 37
2 15. 78

112.8

95.6
108.4
113.1
+ .4
+ .4
-5 .7
77.5

216.91 216. 77
19.68
19.44
21.79
22.09
2 40.55 240.22
2 38.13 2 37. 73
37. 73
35.93
(3)
(3)

18. 36
20.09

2 38.86
2 36.95

32. 63
(3)

1 Indexes adjusted to preliminary 1939 census of Manufactures. See table 9 in December 1940 “ Employ­
ment and Pay Rolls for comparable series back to January 1919.
p y
2 Preliminary; source—Interstate Commerce Commission.
3 N ot available.
. 4 Indexes adjusted to 1935 Census. Comparable series back to January 1929 prseented in January 1938
issue of the pamphlet, Employment and Pay Rolls. See also table 7 of October 1940 pamphlet for revised
figures for anthracite mining, February to September 1940, inclusive.
p 1
* See table 7 of February 1941 pamphlet for revised figures January 1938 to January 1941
f Retail-trade indexes adjusted to 1935 Census and public-utility indexes to 1937 Census. N ot comparable
ynj* indexes published m pamphlets prior to January 1940 or in the M onthly Labor Review prior to April
1940. Revised series available upon request
^
7,Ave,ru ge 'fcckly eafi,r igs n.o t strictly comparable with figures published in issues of the pamphlet dated
earlier than January 1938, or in the Monthly 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 mamly supervisory.
’
8 Covers street railways and trolley and motorbus operations of subsidiary, affiliated, and successor
companies.
« indexes adjusted to 1933 Census. Comparable series in November 1934 and subsequent issues of pam­
phlet or February 1935 and subsequent issues of M onthly Labor Review.
p
10
Payments only; the additional value of board, room, and tips cannot be computed
i «Vi
^
of employment and pay rolls not available. Percentage changes from November to December
1941, October to November 1941, and December 1940 to December 1941 substituted
12 Less than a tenth of 1 percent.
13 Based on estimates prepared by the U. S. Maritime Commission covering steam and motor merchant
vessels of 1,000 gross tons or over in deep-sea trades only.


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T re n d o f E m p lo y m e n t a n d J jn em p lo ym en t

53S

Public Employment
The Federal Government added 85,000 employees in the executive,
judicial, and legislative branches during the month of December.
The increase was due, to a certain extent, to the temporary emplovment of seasonal Post Office workers. The total of 1,639,000
employees in these branches represented an increase over a year ago.
Force-account workers engaged on Federal construction projects, but
whose period of employment terminates at the completion of the
project, numbered 194,000, or 12 percent of the total.
Although seasonal declines in the construction industry were seen
in the 42,800 fewer workers given employment in the month ending
December 15 on projects financed from regular Federal appropria­
tions, increased activity took place on the construction of airports
and naval and other vessels, and employment on all defense construc­
tion work was 352,000 higher than a year ago. In the current month,
defense and nondefense construction work together required the
services of 1,062,000 persons, who were paid a total of $172,722,000.
Seasonal declines also occurred on construction projects financed
from USHA, PWA, and RFC funds. During the month, these three
programs dropped 14,500 workers—-almost 25 percent.
The decline of 50,100 persons on work-relief programs during
December was distributed as follows: WPA, 3,300, NT A, 27,700,
and CCC, 19,100 persons. The NYA decline took place mainly
in the out-of-school work program, and the CCC decline occurred
mainly in the enrollee group. Total personnel of these work pro­
grams in December was 1,828,000 and total pay rolls were $86,227,000.
Employment was 38 percent lower than a year ago.
For the regular Federal services, data for the legislative, judicial,
and force-account employees, are reported to the Bureau of Labor
Statistics by the respective offices, while data for the executive service
employees are reported through the Civil Service Commission. The
Bureau of Labor Statistics receives monthly reports on employment
and pay rolls for the various construction projects financed wholly
or partially by Federal funds directly from the contractors and sub­
contractors, and for the work-relief programs from the respective
agencies.
A summary of employment and pay-roll data in the regular I ederal
services and on construction and work-relief projects financed wholly
or partially from Federal funds is given in table 2.


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534

M o n th ly L a b o r R e view — F e b ru a ry 1942

2 . - —Employment and Pay Rolls in Regular Federal Services and on Projects
Financed Wholly or Partially from Federal Funds, December 1940, November and
December 1941 1

T able

[Preliminary figures]
Employment

Pay rolls

Class
December Novem ­
1941
ber 1941

Decem­
ber 1940

December
1941

Federal services:
E xecutive2_______ 31, 6?0, 000 1, 545,131 1,184, 344 3$252, 463,000
Judicial--- - _
2, 593
2, 582
2, 514
656, 938
Legislative___ _ ............. 6, 280
6, 202
5, 921
1,369,262
Construction projects:
Financed by regular Federa! appropriations__ - _ 41,062, 396 1,105,160
738,106 4172, 721, 825
.
Defense___
944, 648
957, 586
592, 274
156, 025. 378
Other___ _________ 117,748
147, 574
145,832
16, 696, 447
Financed by US HA ______
3 28,000
35, 484
48,008
3 4, 354, 000
Defense. _ - - - - - 7,027
9,649
4, 906
1, 257, 000
Other.. -- ___
20, 973
25, 835
43,102
3, 097, 000
Financed by PWA 5 _____
2, 581
2, 694
21, 083
479, 827
Financed by RFC 6 ___
16, 667
23, 590
3, 582
2,877, 769
Defense. .
____
...
14, 878
21,531
2, 629, 608
(7)
Other____________ .
1,789
2,060
248,161
(7)
Work Project Administration
projects.
. ______ _ . . . 1,053,095 1, 056,401 1,874,903
69, 500, 000
Defense. .
322, 406
324,107
20, 500,000
(7)
Other__
___ __
730, 689
732, 294
49, 000,000
(7)
National Youth Administration:
Student-work program__ _
334, 284
341, 308
450, 731
2, 294, 344
Out-of-school work proggram__________ _______
288,129
308,825
331, 382
6, 928, 891
Civilian Conservation Corps___
152, 371
171,493
285, 731
7, 503,757

November
1941

December
1940

$237,398,486
654, 806
1,360, 645

$183,707,026
652, 507
1, 305, 706

167, 455, 277
148, 807, 105
18, 648,172
3, 981, 702
1,149, 347
2, 832, 355
322, 668
3, 590, 705
3, 313,032
277, 673

87, 263,100
72,832, 617
14,430,483
4,886, 898
418,968
4, 467, 930
2,190, 324
368,149

60, 600,000
18,100, 000
42, 500,000

103, 291, 574

2, 367, 642

3,125,149

7, 500, 523
8, 242, 555

6, 522, 370
12,928, 027

(7)
(7)
(7)
(7)

'A n explanation of the employment count and pay-roll period is contained in footnotes to the detailed
tables of a separate pamphlet entitled, “ Employment and Pay Rolls, November, 1941.”
2 Includes force-account and supervisory and technical employees shown under other classifications to
the extent of 216,489 employees and $38,159,209 pay roll for December, and 224,054 employees and $34,314,666
pay roll for November.
3 Part of data estimated.
4 Data for Federal-aid roads estimated.
5 Includes data covering PWA projects financed from Emergency Relief Appropriation Acts, 1935, 1936,
and 1937 funds, as follows: For December, 1,073 wage earners and $129,206 pay roll; for November, 1,163
wage earners and $133,333 pay roll. Also includes data covering PWA projects financed from Public Works
Administration Appropriation Act, 1938 funds, as follows: For December, 1,416 wage earners and $339 067
pay roll; for November, 1,411 wage earners and $179,507 pay roll. Also includes data for PWA projects
financed from National Industrial Recovery Act funds, as follows: For December, 92 wage earners and
$11,554 pay roll; for November, 120 wage earners and $9,828 pay roll.
«Includes 349 employees and $49,468 pay roll for December, 1,218 employees and $149,238 pay roll for
November on projects financed by the RFC Mortgage Co.

7 Defense and other categories not set up.

###*##**
D E T A IL E D R E P O R T S F O R IN D U S T R IA L A N D
B U S IN E S S E M P L O Y M E N T , N O V E M B E R 1941

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 distributed free upon request. Its contents for the month of
November 1941, insofar as industrial and business employment is
concerned, are summarized here.


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535

T ren d o f E m p lo y m e n t a n d U n e m p lo y m en t

Estimates of Nonagricultural Employment

In table 1 are given estimates of nonagricultural employment by
major groups. Tbe figures for “ Total civil nonagricultural employ­
ment” and “Civil employees in nonagricultural establishments” are
based on the number of nonagricultural “gainful workers,” shown
by the 1930 Census of Occupations (less the number who were unem­
ployed for 1 week or more at the time of the census) and on regular
reports of employers to the United States Bureau of Labor Statistics
and to other Government agencies. The estimates for the individual
industry groups are based in large part on industrial censuses and on
the above-mentioned regular reports of employers.
Estimates of “Employees in nonagricultural establishments” by
States are given each month in the pamphlet mentioned above.
T a b l e l —Estimates of Total Nonagricultural Employment, by Major Groups
[In thousands]
November
1941
(prelim­
inary)

Employment group

Total civil nonagricultural employment
Civil employees in nonagricultural estabManufacturing 3

_.

__

----

Transportation and public utilities---Trade 5__________ ______ _________
Finance, service, and miscellaneous 6_.
Federal, State, and local government._
Military and naval forces (not included
above)____________________________

October
1941

Change
Change
November
October
November
1940
to
to
1940
November
November
1941
1941

40, 711

40, 777

-6 6

37, 528

+3,183

34, 568
12, 746
911
1,970
3, 307
7, 131
4, 231
4, 272

34, 634
12, 799
915
1,960
3, 365
7, 070
4, 256
4, 269

-6 6
-53
-4
+ 10
-58
+61
-25
+3

31, 385
10, 994
853
1, 709
3,065
6, 795
4,088
3,881

+3,183
+1, 752
+58
+261
+242
+336
+ 143
+391

2, 071

2,014

+57

822

+ 1, 249

i Excludes employees on WPA and NY A projects and employees in GO Ccamps.
firm members self-employed persons, casual workers, and domestic servants. Includes allowance tor aa
justment of factory and trade totals to preliminary 1939 census figures Revised series available on reciuest.
J 2 Excludes all of the groups omitted from “Total civil nonagricultural employment as well as proprietors,
firm members, self-employed persons, casual workers, and domestic servants.
3 \(iiusted to preliminary 1939 Census of Manufactures.
,
i Includes employees of construction contractors only. Does not include construction workers employe
directly by other industries.
5 Retail trade component adjusted to preliminary 1939 census,
o Revised series—not comparable to figures previously published.

Industrial and Business Employment

Monthly reports on employment and pay rolls are available for
157 manufacturing industries; 16 nonmanufacturing industries, in­
cluding private building construction; water transportation, and
class I steam railroads. The reports for the first 2 of these groups
manufacturing and nonmanufacturing—are based on sample surveys
by the Bureau of Labor Statistics. The figures on water transporta­
tion are based on estimates prepared by the Maritime Commission,
and those on class I steam railroads are compiled by the Interstate
Commerce Commission.

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Federal Reserve Bank of St. Louis

536

M o n th ly L a b o r R e view — F e b ru a ry 1 9 4 2

The employment, pay-roll, hours, and earnings figures for manu­
facturing, mining, laundries, and dyeing and cleaning cover wage earners
only, but the figures for public utilities, brokerage, insurance, and
hotels relate to all employees except corporation officers and execu­
tives, while for trade they relate to all employees except corporation
officers, executives, and other employees whose duties are mainly
supervisory. For crude-petroleum production they cover wage
earners and clerical field force. The coverage of the reporting samples
for the various nonmanufacturing industries ranges from approxi­
mately 25 percent for wholesale and retail trade, dyeing and cleaning,
and insurance, to approximately 80 percent for quarrying and nonmetallic mining, anthracite mining, and public utilities, and 90 per­
cent for metal mining.
The general manufacturing indexes are computed from reports
supplied by representative manufacturing establishments in 90 of
the 157 industries surveyed. These reports cover more than 55
percent of the total w~age earners in all manufacturing industries of
the country and more than 65 percent of the wage earners in the 90
industries covered.
Data for both manufacturing and nonmanufacturing industries
are based on reports of the number of employees and the amount of
pay rolls for the pay period ending nearest the 15th of the month.
The average weekly earnings shown in table 2 are computed by
dividing the weekly pay rolls in the reporting establishments by the
total number of full- and part-time employees reported. As not all
reporting establishments supply information on man-hours, average
hours worked per week and average hourly earnings are necessarily
based on data furnished by a slightly smaller number of reporting
firms. Because of variation in the size and composition of the report­
ing sample, 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 to be sufficiently
adequate in virtually all instances to indicate the general movement
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 November 1940
are computed from chain indexes based on the month-to-month
percentage changes.
E M PLO Y M E N T AND PA Y -R O L L IN D E X E S , A V ER A G E H O U R S, AND
A V ER A G E EA R N IN G S

Employment and pay-roll indexes, as well as average hours worked
per week, average hourly earnings, and average weekly earnings for
September, October, and November 1941, where available, are pre-


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Federal Reserve Bank of St. Louis

EMPLOYMENT AND PAY ROLLS
ALL MANUFACTURING INDUSTRIES
INDEX

1923-25= 100

INDEX

200

200

180

180

160

160

/
i

120

Jrj

100 I

LOYME NT —

n ¥ 9i

J

f—

j J J.
d
K/

3
at*3

I

.o'
X

f
100
80

60

60

?&
3

PAY R OLL

20 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942


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Federal Reserve Bank of St. Louis

20

AOJUSTEO TO 1939 CENSUS OF MANUFACTURES

Gn

O
O
•^1

538

M o n th ly L a b o r R e view — F e b ru a ry 1 9 4 2

sented in table 2. The September and October figures, where given,
may differ in some instances from those previously published because
of revisions necessitated primarily by the inclusion of late reports.
Indexes of employment and pay rolls are given in table 3 for 55 addi­
tional manufacturing industries for the months of September, October,
and November 1941. These indexes are based on 1939 as 100 and
are available in mimeographed form for the period from January
1939 to January 1941, inclusive.
In table 4 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 nonmanufacturing industries, by months, from November 1940 to Novem­
ber 1941, inclusive. The chart on page 537 indicates the trend of
factory employment and pay rolls from January 1919 to November
1941.


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T able

2 . — Employment,

Pay Rolls, Hours, and Earnings in Manufacturing und ISonmanufucturing Industries
MANUFACTURING

[Indexes are based on 3-year average, 1923-25=100. For “all manufacturing,” “durable goods,” “nondurable goods,” and “aluminum manufactures,” they have been adjusted
to preliminary 1939 census figures. The indexes for all other manufacturing groups and industries have been adjusted to 1937 census figures, except as otherwise noted, and are
not comparable to indexes published in pamphlets prior to August 1939. Comparable series available upon request]
Employment index

Pay-roll index

Average hours worked
per week 1

N ov.

Oct.

Sept.

N ov.

Average hourly earn­
ings 1

Industry
N ov.

1941

All manufacturing2. . . ________
- _
Durable goods2. ___
............
Nondurable goods 2__- - ______ _

-

Oct.

1941

Sept.

Nov.

1941

1941

Oct.

1941

Sept.

1941

1941

1941

1941

1941

Oct.

1941

Sept.

1941

N ov.

Oct.

Sept.

C e n ts

C e n ts

C e n ts

1941

1941

1941

134.7
144.6
125.3

135.4
144.0
127. 1

135.2
142. 1
128.7

165.2
190.3
137.2

166.8
191.3
139.2

162.6
183.3
139. 5

$32. 81
37. 64
26. 12

$32. 92
37. 96
26. 10

$32. 06
36. 82
25. 78

40.3
41.8
38.6

41. 1
42.9
39. 1

40.9
42.3
39.5

86. 5
68. 8

77.0
85. 3
68. 0

138.8
147.8
168. 7
98.3

139.4
147.9
169.9
98.0

140. 5
148. 9
170.6
97.8

172.0
183.2
253. 4
117.9

173.1
181.1
255. 5
119.1

170.6
178.4
246.3
115.8

36. 39
39.06
36. 08
28. 74

36.41
38. 63
35. 96
29.16

35. 60
37. 81
34. 51
28. 42

40.9
40.0
43. 0
40.8

41.5
39.9
44.2
41.3

40.7
38.9
42.9
41.4

88. 6
97.7
83.9
70.2

87.7
96.9
81.4
70.0

87. 5
97.1
80.5
68. 3

132. 5
114.2
113.4
98.1
224. 6

131. 6
114.0
115. 2
99. 5
227.2

127. 9
112.9
116.0
99. 4
227.9

160.7
179.8
148.2
106. 7
288.4

157. 7
182. 1
151.5
114. 7
296.2

149. 5
175.6
148.7
106. 3
290. 5

31. 77
42. 89
32. 32
31.32
30.18

31. 55
43. 52
32. 29
33. 38
30. 48

30. 68
42. 30
31. 35
31.04
29. 81

43.9
44.8
42.9
39. 7
40.7

44.5
46. 7
43.1
42.0
41.7

44. 2
45.7
42. 1
40.5
41.3

73.3
95.3
75. 4
79.6
74.2

71.7
93.4
74. 9
79.4
73. 2

70.2
92.7
74.4
76.6
72.4

125. 1
110. 1
107.6
135.0

128.4
114.4
109.3
130.1

127.4
116.2
109. 5
145.0

150.1
115.3
116.3
165.9

157.7
129.0
127.2
156. 6

154.9
127.9
123.6
187.6

35.96
29. 39
34. 59
27. 39

37. 00
31. 70
37. 59
26. 95

36. 64
30. 97
36. 51
28.92

43.4
38.9
41.6
38.9

44.9
41.9
44. 4
41.9

44.8
41.4
43.3
42.5

83.4
75.7
83.9
70.7

82.6
75.8
85.2
64.3

82.0
74.9
84.6
68.3

147.3
2.03. 8
181.4
167. 5

146.0
204.9
180.1
169.9

144.4
208.0
178.6
170.7

205. 2
280.4
255.3
223. 9

202. 2

277.1
255.7
231.6

196.6
272. 2
248.2
230.7

35. 58
33.15
38. 98
36. 72

35. 30
32. 63
39. 24
37. 46

34. 80
31.70
38.47
37.12

46.8
41. 9
44.6
40.1

47.0
42.0
45.4
40.7

46.3
41.3
45. 1
40.5

76.1
79.3
86.8

91.9

75.1
77.9
86. 1
92.3

75.2
76.8
85.0
92. 0

177.0
169.4

174.9
168.8

172. 6
168. 7

223. 2
242.1

233.1
244. 7

230.2
241.3

39.25
37.16

41.45
37. 78

41.47
37.24

43.3
43.1

44.9
44.0

45. 0
43.6

91.5
86.4

86.0

92.7

92.8
85.5

352. 5

339.5

325. 0

676.3

615. 5

572. 9

50.64

47.81

46. 62

47. 4

47.2

46.5

106. 7

101. 5

100. 5

78. 1

75.8
84. 3

66.8

D u r a b le go o d s

Iron and steel and their products, not including
machinery. - _ _
___ _ _
______
Blast furnaces, steel works, and rolling mills
Bolts, nuts, washers, and r iv e ts... .
_________ . ..
Cast-iron pipe__ ______ *
Cutlery (not including silver and plated cut­
lery) and edge tools____ . . 1 . . .
....
Forgings, iron and steel____ ___ .
Hardware____
. _ _____ __ ___________
Plumbers’ supplies 3__________ ___________
Stamped and enameled w are______ ___ . . .
Steam and hot-water heating apparatus and
steam fittings____________________________
Stoves _ _____ . . .
. . . __________
Structural and ornamental metalwork < _____
Tin cans and other tinware____ ____________
Tools (not including edge tools, machine tools,
files, and saws)_______________ _ __ ____
W¡rework . . . . . _____ ______ _____ _
Machinery, not including transportation equipment.
Agricultural implements (including tractors).
Cash registers, adding machines, and calcu­
lating machines. ___ ___ ________
Flectrical machinery, apparatus, and supplies
Engines, turbines, water wheels, and w ind­
mills * ............. .....
_ . _____ . . .
..

See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T re n d o f E m p lo y m e n t a n d U n e m p lo ym en t

Average weekly earn­
ings 1

On
vO
CO

T able

2 . —Employment,

P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries—-Continued

540

M A N U F A C T U R I N G — C o n tin u ed

Employment index

Pay-roll index

Average weekly earn­
ings 1

Average hours worked
per week i

Average hourly earn­
ings i

Nov.
1941

Nov.
1941

Nov.
1941

Oct.
1941

Sept.
1941

Cents

Cents

Cents

Industry
Nov.
1941

Oct.
1941

Sept.
1941

Nov.
1941

Oct.
1941

Sept.
1941

Oct.
1941

Sept.
1941

Oct.
1941

Sept.
1941

$38. 84
45. 54
29. 42
35. 92
35. 52
43. 62
39. 21
44. 32
37.69
42. 12
47. 84
35.09
36. 41
38. 24

$37. 77
44. 74
29. 25
35. 84
36.16
41.72
38.19
41. 72
33. 80
41.68
46. 82
35.22
36. 27
38. 65

44. 6
51.0
42.6
46. 2
47. 2
41.4
44.3
39.3
40.2
44. 9
42.5
41.6
42.5
42. 3

46.0
52. 0
41.9
47.0
47.0
43.0
45. 2
40.7
42.6
45. 8
45. 4
42.7
42..4
43. 1

45.4
51. 4
42.1
47.6
47.7
41.7
45.6
38.7
38.9
45. 2
44.8
43. 1
42.4
43. 8

30. 10
27 03
34. 38
34. 41
33. 38
25. 20
26.71

29. 54
27.04
36. 20
35. 10
32. 29
24. 47
26. 03

42. 1
40. 0
39.9
45. 2
39.3
39.5
41.0

43. 3
43. 1
42. 4
45. 7
39. 5
41.5
42.8

42. 7
43.6
43.6
46.4
39. 1
41. 1
42.3

26.91
23. 25
29.48
25. 71
32.16
32.16
28. 18
26.93

26.17
22. 72
28.28
25. 27
31.64
30.19
28. 06
26.09

41.6
38. 1
37.8
38. 1
39. 7
37. 1
36. 8
37. 5

43.4
40. 2
39.2
39.2
41. 1
38.6
38.8
38.8

21.94
21.81
28. 58
19. 76
22.91
24. 53
26. 53

21.73
21.38
29. 33
19. 12
23. 15
24. 14
27. 87

37. 1
38. 4
38. 4
39. 2
40.3
38.0
33.2

37.6
38.8
39. 0
39. 3
40.9
39.2
32.2

Durable goods—Continued

84.9

88.6

70.6
76.8
75.9
104.2
90. 1
111. 6
90.7
93.5
107. 6
83. 1
87.4
89.3

84.3
87.6
70.1
75.9
75.6
101.9
86.9
109. 1
88. 5
92. 0
105. 9
82.2
85.8
89.0

82. 9
87. 1
69.7
75.4
75.8
100.3
84. 5
107.9
86.8

92.3
104. 3
82.1
85.5
88.7

60.2
64.0

69.6
63.3
81. 1
75. 5
84.5
59.8
62.6

69. 2
62. 5
83. 1
76.3
82.6
59.0
61. 7

42.6
39. 7
38.2
38. 7
40. 2
37.3
38.5
37.9

62.5
57.3
74.9
65. 7
78.7
84.3
72.0
69.9

61.9
57.8
74.4
65.5
78. 2
83. 6
72.4
69. 5

61.1
57.2
73.6
65. 3
78.7
81.2
73.1
69.1

38.3
39.1
39.9
39. 6
41.5
40.0
34.4

57.9
56. 7
74.9
50.4
57.4
61.7
82.9

58.1
56. 6
73.3
50. 3
56.3
61. 5
82.8

56.9
55.1
73. 6
48.3
56. 1
59.7
81.0

70. 5
64. 7
81. 0
76.4
86.2

Nondurable goods

Textiles and their pro ducts____ ___________
Fabrics. . . ___ . .. ... . . . . . _______
Carpets and rugs.. . . . ___ . ___ . . . .
Cotton goods . . . . . ___ . ___ . ..
Cotton small wares_____ .. ___ . . . .
 Dyeing
and finishing textiles________
Hats, fur-felt___________________ : ...... .
https://fraser.stlouisfed.org

Federal Reserve Bank of St. Louis

113.2
105. 9
90. 0
111.4
109. 1
133. 1
76.4

114.7
106. 2
90. 5

111.0

109. 2
135. 1
77.8

115. 5
106.3
91. 0
110. 2
107. 9
136. 0
79. 2

118. 1
118.7
93. 8
134 9
127. 9
132. 4
75.9

122.3

120.1
93. 6
135. 8
128. 1

135.9
75.1

123.4
118. 0
96. 6
130.2
128. 2
135. 7
80.4

21.60
21. 69
28. 69
19.69
23.04
24. 15
27.34

M o n th ly L a b o r R e view — F e b ru a ry 1 9 4 2

Machinery, etc.—Continued.
Foundry and machine-shop products______
147. 8
187.8 $38.00
148. 8
147.0
191. 4
194.7
Machine tools_________ _ . _ ____ _ ___
366. 9
361.5
356. 8
599. 1 596. 3 578. 2 45. 17
Radios and phonographs______________ ___
217.9
212. 5
267. 2 261. 7 254. 4 30. 09
217.8
109 0
109. 2
141. 1
142. 3
141. 1 35. 71
Textile machinery and parts______________
108. 5
160. 7
236. 3
158. 2
232.8
233. 4 35. 80
Typewriters and p a rts --.. .. - _________ . 161.8
203.2
. - _____
210.3
190.9
287.8
282.0
252.6
42. 93
Transportation equipment 5__ __
9, 701. 5 9,174.8 8,515. 7 13,204,6 12,301 6 11,145 8 39.81
Aircraft 8___ ___ _ .. ___
175. S 176.6
Automobiles « __ _______________________
129.7
128.9
124. 1
159. 3 43. 84.
115. 1 101.2
Cars, electric- and steam-railroad. ____ ____
97.2
96.9
95. 1
36. 74
111.7
Locomotives 7
. . . ____ . ___
77.0
74. 7
102.9
42. 00
72.2
105.8
98.5
494.6
Shipbuilding_______ ___________________ 532. 2
442. 5 827. 1 803.4
45. 62
703.8
Nonferrous metals and their products— . .. 145.7
146.2
185.5
147.3
181. 5
185.7
34. 66
Aluminum manufactures 8 . _ __ . _ . .
243.4
354. 8
241.6
243. 1 364. 7 354.8
37.15
Brass, bronze, and copper products. _ . . . . . 191. 3
193.4
200. 6
207.6
270.8
37.71
193. 5
Clocks and watches and time-recording
117.8
116. 1
111.3
155. 0
160.6
148. 8
29. 64
devices.
__ _ __________________
25. 64
119. S
121.0
120.1
115. 5
122.4
Jew elry.. . . .
.
. . . . _____ ____ ...
121.4
119.6
124.4
136 2
138.2
32. 35
Lighting equipment_________ ___________
123.3
118.8
Silverware and plated ware ... . . . . . . . . .
86.5
87. 1
102. 2
102. 9
85.8
103. 7 34. 40
102.9
120. 1
118.1
Smelting and refining—copper, lead and zinc . 100.3
101. 2
120. S
33. 92
Lumber and allied products_____________ ____
77.8
79.7
80.4
86.5
92.4
90.8
24.21
107.4
107.6
120.6
118.0
26. 07
F urniture.. .. . . __ .... _______________
108.4
118.8
Lumber75.5
76. 4
71.0
74.9
72.9
26. 05
...
. . .
76.8
Millwork. ___ . . . .
70.4
66.3
69.4
70.3
78. 3
77.5
21.86
Sawmills. . . __ . . . . . . . . . . . .
101. 5
Stone, clay, and glass products.. . . . . . . _
.
102.1
101.8
106.1
109.4
28. 67
105.4
76. 2
72.9
75. 8
25. 11
Brick, tile, and terra cotta________________
77. 7
79. 1
76.2
82 5
82.3
91.5
93.3
93. 5 31. 25
C em ent... _____________________________
83.8
169. 3
160. 5 31. 20
132. 4
130. 3
173. 7
Glass___ ___ _____ __________ ______ 133. 3
45. 5
46. 6
45. 9
34. 5
37.4
36. 8
26. 63
Marble, granite, slate, and other products . ..
123. 6
Pottery_______________________________
124. 0
121. 0
127.9
130.8
124.8
26. 34

See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

135.0
80.3
88. 1
145.8
61.3
109.4
124.8
121.0

164.2

121.2

130.0
61.3
137.0
£6.7
92.3
97.7
145.7
153.7
290.9
102.8

162.2

110.0

78.9
73.0
129.7
265.4
97.0
68.4
54.8
70.0
126.6
146. 7
128.6
108. 1
118. 1
147.7
129.2
152. 3
184. 9
123.0
148.2
(6)
101.2

142.7
323. 2
96.5
111.5
81.7
86.5
190.0

135. 2
82.8
88.4
151. 2
61.9
109.6
129.0
123.4
172.6
111. 5
133.6
77.2
137. 1
88.5
94. 7
96.7
152.4
154. 5
302.6
102.4
218.4
106.3
80. 1
78.4
125.9
244. 5
103. 3
67.3
54. 3
69. 0
126. 5
146.8
128.2
108.1
118.1
148. 1
129.2
152. 7
183.4
134.6
145.6
(9)
103.6
144.0
325.0
97.7
111.6

80.4
86.0

192.6

136.1
82. 5
88.0

161.1
63.2
110.5
131.3
123.7
177.5
122. 5
131.5
85.3
136.4
98.9
95.2
97.0
162.7
153.5
315. 1
106. 4
321. 6
101.5
80.6
84.3
123.6
90.5
103. 7
63.9
53.6
65.2
124.9
144.7
128.4
104.8
116.9
146.4
128.5
150.7
182.4
114.4
142.9
(e)
110.2

143.9
327.0
98.2
111. 5
77.2
86.5
193.2

159.5
76.9
97.3
139.7
60.9
124.7
109.5
109.0
125.9
148.9
156. 5.
40.3
155.5
96.9
88.3
117.8
157.6
159.7
350.9
96.8
172.5
125.6
83.0
66.8

153.5
308.3
89.7
77. 1
71.5
77.6
137.4
193.5
166.7
104.5
116.4
194.2
167.8
202.3
264.6
132.8
189.2
(•)
99.1
171.7
385.8
138.5
141.0
110.4
117.6
228.6

160.6
79.8
98.6
148.4
61.5
126.7
119.1
112.8

145.2
142.9
166.8
59.6
156.5
100.5
93.3
116.4
162.9
157.6
381.3
96.8
244.4
122.0

88.3
71.2
151.0
229.1
93.9
75.6
70.8
76.0
135.9
194.5
165.2
102.6

114.8
190.8
168.0
197.9
261.0
144.0
183.4
(9)
102.7
173.7
386.4
142.2
138.1
106.9
111.8

234.4

151. 1
80.6
95.7
156.6
61. 5
129.2
126.3
114.3
162.4
150.9
156.5
84.2
146.7
101.6

95.3
114. 2
170.1
157.4
401.5
99.6
359. 1
114.8
92.5
77.2
145.8
95.2
103.3
70.4
69.3
70.4
133. 3
187.9
163.0
99.3
114.0
186.7
166. 4
192. 9
250. 9
113.9
176,1
m

111.6

109.9
374.3
139.6
134. 8
104.1
107.3
231.6

20. 77
19. 83
18. 72
22.05
20.78
26.45
21.36
23.08
20.57
20.40
18.03
20.09
18.14
23.16
21.44
30.40
27. 39
28.81
35.49
24.87
20. 27
21.96
28. 22
31.28
30. 79
30.46
26.20
20.45
20. 33
32. 99
26.40
32.02

20.87
19.92
18.88
22.61
20. 73
26.81
22. 30
23.42
22.58
21.29
18. 65
23. 57
18.15
23. 59
22. 07
30. 22
27. 13
28.18
36. 92
24. 74
21. 23
22.16
29.66
30.80
31.20
24. 41
25. 75
20. 36
21. 14
20. 22
32.71
26.'58
31.73

33.46
40.10
35.19
40.41
33.46
38.08
17.44
28.60
41.60
18.14
33.24
30. 46
33.82
34. 36
31.08
39.41
29.28

33.08
39.42
34. 55
40. 33
32. 63
37. 85
17. 28
28.08
40. 38
18.45
33. 27
30.42
34. 28
33. 54
30. 58
37.92
29. 53

21.12

36.6
38. 1
39.0
39.7
38.4
39.0
35.4
35.2
34.9
38.8
37.9
29. 1
38.0
37.8
37. 1
40.4
40.9
41.9
40.6
45.9
39.8
40.6
44.3
44. 7
39.8
36.8
37.7
38.7
36.7
38. 9
40.3
42.7
43.4

35.6
38.9
39.2
39.9
38.0
39.7
36.7
36.5
36.5
38.8
37.4
34.7
37.8
38.0
37.4
40.0
41.6
42.0
41.1
46.2
42. 2
40.2
45.5
45.3
39.4
35.7
41.5
38.3
36.6
38.4
40. 1
42.3
42.9

57.0
51.7
48.1
56.7
54.5
69.4
60.2

20.87
19.84
32. 34
26.06
31.17

36.5
37.5
38.6
38.4
38.0
38. 2
34.4
34.9
32.8
36.7
36.3
26. 8
37.6
36.4
35.4
40.3
40.2
42.0
38.5
45.7
36.4
40.2
42.3
44.8
38.8
49.0
38.2
38. 5
36.5
38.7
40.4
42.0
43.3

32.82
39. 63
34. 12
40.14
32.17
36.58
16.05
27.44
38.89
18. 77
32. 56
29.29
33. 50
32. 65
31.00
36.19
28.99

40.3
36.1
39.9
36.6
40.9
40.7
46. 1
41.6
44.6
35. 5
40.9
39.3
40.5
39.3
41.8
36.9
40.9

39.9
35.8
40.2
36.9
41.1
41.0
47.0
41.9
43.5
36.8
41.2
39.4
41.2
39. 1
41.8
35.8
41.5

39.9
35.9
39.9
37.2
40.7
40.8
44.8
41.0
43.1
36.5
41.3
39.2
41.1
38. 5
42.7
34.7
41. 2

84.3
108.6
87.4
111. 1
80.5
93.5
36.8
65.4
93.2
51.1
81.8
77.5
83.6
87.8
74.2
107.7
71.7

19. 50

20. 22

18. 32
22.31
20.16
27.13
22.68

23.64
24.54
20.47
17. 75
30. 14
17.10
23.71
22.35
29.51
26. 56
28. 32
37.40
24. 39
21.21

21.81
30. 86
30.98
30.63
27.41
28. 22
20.00

66.0

57.3
51.4
48.1
50.4
53.8
68.9
61.0
66.0

59.6
60.9
53.6
54.5
48.1 ■ 48.1
69.8
75.0
48.5
48.1
64. 1
63.2
60.2
61.0
75.3
74.8
69. 5
67.9
67.5
68.8
92.2
92.7
53.4
53.3
56.8
54.7
54.9
54.7
66.1
65.7
67.8
67.9
79.3
78.7
62.3
65.3
68.6
68.4
52.7
53.2
57.9
58.1
52.2
52.7
84.3
83.5
63.2
62.5
73. 1
74.0
83.2
108.2
85.0
109.7
77.9
92.5
35.8
63.9
92.8
50.1
80.9
77.3
83.2
86.5
73.0
106.0
71.3

54.9
51. 1
46.3
55.1
52.9
68.5
60.2
64.5
61.6
52.3
46.0
73.8
45.4
63.0
60.1
74.0
65.7
67.4
91.9
52.5
51.1
54.5
67.2
68.4
78.0
77.4
68.0

52.5
57.4
51.9
83.0
62.0
72.8

82.9
107.6
84. 5
108.3
77.6
89.7
35.6
63.0
90.2
51.4
78.9
74.6
81.5
85.9
72.6
104.6
70.8

Trend of Employment and Unemployment

H o s ie ry ...._______________ _____
K nitted outerwear.. , _____________
Knitted underwear_______________
K nitted cloth____________________
Silk and rayon goods_______ _____
Woolen and worsted goods________
Wearing apparel____________________
Clothing, men’s 4________ _______
Clothing, women’s_______________
Corsets and allied garments_______
M en’s furnishings________________
Millinery_______________________
Shirts and collars________________
Leather and its manufactures_____________
Boots and shoes____________________
Leather___________________________
Food and kindred products_______________
Baking___ __________________ ______
Beverages_________________________
B u tter____ __________________ _____
Canning and preserving_____________
Confectionery______________________
Flour___________, _________________
Ice cream___________ ______________
Slaughtering and meat packing____...
Sugar, beet________________________
Sugar refining, cane..____ . __________
Tobacco manufactures___________________
Chewing and smoking tobacco and snuff
Cigars and cigarettes.___ ___________
Paper and printing_____________ _______
Boxes, paper______________ ________
Paper and pulp____________________
Printing and publishing:
Book and job___________ _______
Newspapers and periodicals_______
Chemical, petroleum and coal products........
Petroleum refining__________________
Other than petroleum refining________
Chemicals__________________ ___
Cottonseed—oil, cake, and meal__ _
Druggists’ preparations__________
Explosives___________________ _
Fertilizers______________________
Paints and varnishes.........................
Rayon and allied products________
S oap._________________________
Rubber products...___ _________________
Rubber boots and shoes_____ _____ _
Rubber tires and inner tubes_________
Rubber goods, o ther________________

Cn

to

T abi.e 2. — Employment, P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries— Continued
NONMANUFACTURING
[Indexes are based on 12-month average, 1929 = 100, except for class I railroads, which are based on 1935-39 as 100]
Employment index

Average weekly earn­
ings 1

Average hours worked
per week 1

Sept.
1941

Nov.
1941

Oct.
1941

Sept.
1941

Nov.
1941

88.3
61.5
64.4

49.6
115. 5
85.9
60.5
64.4

$27. 38
32. 46
35. 84
27. 68
37. 58

$32.12
34. 27
34.86
28.88
38. 39

$32. 60
32. 75
34.04
28.07
38.28

27.2
31.3
42.5
42.0
36.9

31.9
33.0
42.6
44.0
38.7

33.4
31.5
41.6
43.6
38.5

Pay-roll index

Average hourly earn­
ings 1

Industry

Coal mining:
Anthracite 10 n . _____
- ___
_ .
Bituminous 10___________________________
Metalliferous mining 12_ ______ ____________ __
Quarrying and nonmetallic mining ____________
Crude-petroleum production 13_ ______________
Public utilities:
Telephone and telegraph 14 15______________
Electric light and power 1415__
, _____ Street railways and busses 14 15 16 _______ ___
Trade:
Wholesale 1417___ _______ - - _- .. ■ __
Retail 1415_ . ----- ----------------------------------Food 15______________________________
General merchandising 14 1=_____________
A pparel 15___ _ ________ ____________
- Furniture 15 ______ _ - ___
Automotive 15_____________________ - Lumber 1»______ ____ _____..___________
Hotels (year-round) 10 14 18_ ___________________
Laundries 10______________________________ - Dyeing and cleaning !»____________________ -.
Brokerage 14 19 20-- - --- .........
Insurance 1419___
- _
___ ___ _...
Building construction 19_---- ---------------------------Water transportation 22_ - - - - - - - - .
Class I steam railroads 23 __ . . . ___ - - ----- -


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Federal Reserve Bank of St. Louis

Oct.
1941

Sept.
1941

Nov.
1941

Oct.
1941

Sept.
1941

50.2
95. 5
79.3
52.8
61.0

50.3
95.3
79.7
54. 1
61.6

50.0
94.2
79.4
54.2
61.8

41.8
116.5
90.3
57.5
62.5

90.0
93.5
70.4

90.6
94. 1
70.3

90.3
94.9
70.3

116.0
114.5
78.6

117.0
115.7
78.4

117.3
115.0
78. 1

31.47
37. 36
36. 39

31.53
37. 50
36. 32

31. 75
36.81
36.20

39.4
39.8
46.3

39.7
40. 6
46. 4

40.3
40.0
46.4

96.6
102. 9

95.6

101.0

92.2
98.1
109.0
116.8
94.5
73.9

92.0
97.3
107.0
110.9
93. 1
82.6
86.3
86.4
91.9
103.4
98.5
(2!)
+1.4
- 2.8
(9)
(9)

90.9
95.8
105. 8
106.6
90.3
77.9
86.3
87. 1
90.0
105. 2
99. 5

33.48
21.78
24. 94
18. 36
22. 22
29. 43
30.67
28. 33
16. 83
19.42

33.48
22. 07
24.64
18. 69

33.28
40.8
22.11
41.8
24. 80
41.6
18.83
38.7
22.19
37. 6
43.8
30. 51
28.83
46.4
28. 84
41.9
16. 27
45.0
19. 33
42.6
22.69
42.6
39. 79
(9)
37. 25 . (9)
37.10
34.6
(s)
(9)
(9)
(9)

41.3
42. 1
41.8
38.4
37.8
44. 1
47.2
43.5
45.3
42.9
43.8
(9)
(9)
35.7
(9)
(9)

41.0
42.4
42.5
38.9
37.8
44.0
46.8
43.0
45.4
43.3
44. 7
(9)
(9)
36.5
(9)
(9)

111. 8

124. 5
98.8
78.4
86.0

81.3
96.3
109. 0
117.2
-1 .3
+ •1
- 2.8
77.4
117. 8

96.3
110.7
116.4
97.4
80.3
87.5
82.4
96.2

111.2
121.2
-.6
-.2

-1 .3
77.6
119.3

100.0

109.7
111. 7
94.9
79.5
89.7
83.4
95. 7
113.0
121.5
- 1.2
- .3
- 1.6
78.5
118.7

86.8

83. 1
93.8
101. 9
92.8
-.8

+ .4
-5 .1
(9)
(9)

49.2

Oct.
1941

122.6

- .8
- .6

+ 1.3
(9)
(9)

22.01

39. 92
37. 98
35. 93
(9)
(9)

22.21

31.35
29. 67
29.04
16. 50
19.31
22. 56
39. 72
37.89
36. 50
(9)
(9)

Nov.
1941

Oct.
1941

Cents

C ents

100.7
104. 2
84.6
66.3
98.9

Sept.
1941
Cents

100.6

103.8
82.2
65.9
96.8

98.2
103.4
82.1
64.3
96.2

80.4
94.0
77.5

79.7
92.9
77.0

79.3
92.5
77.1

81.8
57.8
57.4
48. 1
59.8
71.0
67.2
68. 5
36.5
45.9
53.1
(9)
(9)
103. 9
(9)
(9)

81.2
57.6
56.6
48. 5
59.3
71.0
63. 7
67.9
36.0
45.3
52.9
(9)
(9)
102.3
(9)
(9)

81.2
56.8
56.0
47.8
58.7
71.6
62.3
68.2

35.6
44.9
51.9
(9)
(9)
101.7
(9)
(9)

Monthly Labor Review—February 1942

Nov.
1941

543


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10 Indexes adjusted to 1935 census. Comparable series back to January 1929 presented
in January 1938 issue of pamphlet.
u See table 7 of October 1940 “ Employment and Pay Rolls” for revised employment
and pay-roll indexes, average hours worked per week, average hourly earnings, and
average weekly earnings in anthracite mining, February 1940 to September 1940, inclusive.
12 See table 7 of February 1941 pamphlet for revised figures for metalliferous mining
from January 1938 to January 1941, inclusive.
13 Does not include well-drilling or rig-building.
14 Average weekly earnings, hourly earnings, and hours not 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.
15 Retail-trade indexes adjusted to 1935 census and public-utility indexes to 1937 census.
Not comparable to indexes published in pamphlets prior to January 1940 or in M onthly
Labor Review prior to April 1940, with but one exception, retail furniture, which has
been revised since publication of July 1940 pamphlet back to January 1936. Comparable
series for earlier months available upon request.
18
Covers street-railways and trolley and motorbus operations of subsidiary, affiliated,
and successor companies; formerly “ Electric-railroad and motorbus operation and
maintenance.”
17 Indexes adjusted to 1933 census. Comparable series in November 1934 and sub­
sequent issues of “ Employment and Pay Rolls.”
18 Cash payments only; additional value of board, room, and tips not included.
19 Indexes of employment and pay rolls are not available; percentage changes from
preceding month substituted.
20 See note 18 in table 10 in the July 1941 issue of “ Employment and Pay Rolls” for re­
vised average weekly earnings in the brokerage industry from January 1939 to January
1941.
21 Less than a tenth of 1 percent.
22 Based on estimates prepared by the United States Maritime Commission covering
employment on steam and motor merchant vessels of 1,000 gross tons or over in deep-sea
trades only.
23 Preliminary source—Interstate Commerce Commission.

Trend of Employment and Unemployment

1 Mimeographed sheets giving averages by years, 1932 to 1939, inclusive, and by month
January 1938 to August 1940, inclusive, available on request. Average hours and average
hourly earnings are computed from data supplied by a smaller number of establishments
than the average weekly earnings, as not all reporting firms furnish man-hours. The fig­
ures are not strictly comparable from month to month because of changes in the size and
composition of the reporting sample.
2 See tables 9, 10, and 11 in the December 1940 issue of “ Employment and Pay Rolls”
for comparable series back to January 1919 for all manufacturing and back to January
1923 for the durable- and nondurable-goods groups.
See table 7 in the April 1941 issue of “ Employment and Pay Rolls” for revised figures
from January 1940 to March 1941.
<Revisions in the following industries have been made as indicated:
Structural and ornam ental m etalw ork.— August 1941 pay-roll index to 125.2; average
hourly and average weekly earnings to 83.7 cents and $36.92 respectively.
Electrical m achinery, apparatus, and s u p p lie s — August 1941 average hourly and
weekly earnings to 85.1 cents and $37.41.
E ngines, turbines, water wheels, and w indm ills. —July and August 1941 employment
indexes to 298.3 and 314.7; pay-roll indexes to 507.0 and 546.2; average hourly earn­
ings to 97.7 and 99.6 cents; average weekly earnings to $45.02 and $45.94; August
average hours to 46.1.
Clothing, m en ’s. —August 1941 pay-roll index to 113.6; average hourly and weekly
earnings to 64.4 cents and $23.59.
5 Adjusted on basis of a complete employment survey of the aircraft industry made by
the Bureau of Labor Statistics for August 1940. Not comparable with previously pub­
lished indexes from January 1939 to August 1940, inclusive. Comparable figures for this
period given in table 9 of the September 1940 issue of “ Employment and Pay Rolls.”
8 The indexes for “ Automobiles” have been adjusted to 1933 census figures, but not to
later census figures because of problems involving integrated industries.
7 See footnote 7 in table 5 of October 1941 “ Employment and Pay Rolls” for revised
employment and pay-roll indexes, average hours worked per week, average hourly
earnings, and average weekly earnings in locomotives, August 1940 to July 1941 inclusive.
8 See table 8 in March 1941 “ Employment and Pay Rolls” pamphlet for revised figures
from January 1935 to February 1941.
8 Not available.

544
T able

Monthly Labor Review—February 1942
3 . — Indexes

of Employment and P ay Rolls in 55 Additional Manufacturing
Industries
[12-month average 1939=100]
Employment

Industry

Iron and steel group:
Metal doors and sh u tte rs..___ ___ __________
Firearms_______________ __________________
Screw-machine products_______ ______ ______
Wire drawing________________ _______ _____
Wrought pipe not made in rolling m ills._______
Steel barrels, kegs, and drums_______________
Machinery group:
Machine-tool accessories.________ ___________
Pum ps______________________ : _______ ____
Refrigerators and refrigerating apparatus______
Sewing machines______ ____________________
Washing machines, wringers, and driers_______
Transportation-equipment group:
Motorcycles, bicycles, and parts............................
Nonferrous metals group:
Sheet-metal work__________________________
Smelting and refining of scrap m etal_________ _
Lumber group:
Caskets and morticians goods________________
Wood preserving___ _______________________
Wood turned and shaped 2______ ____________
Wooden boxes, other than cigar___ __________
Mattresses and bed springs____ _____________
Stone, clay, and glass products group:
Abrasive wheels_________ _____ ___________
Asbestos products__________________________
Lime__________ ____________ _____ _______
Gypsum______ _______ _______________
Glass products made from purchased glass_____
Wallboard and plaster, except gypsum________
Textiles:
Textile bags_____________ _________________
Cordage and twine_________ _______ ________
Curtains, draperies, and bedspreads__________
Housefurnishings, other.._____ ______________
Jute goods, except felt___ ___ ________________
Handkerchiefs___ ____________ ________ ____
Leather group:
Boot and shoe cut stock and findings_________
Leather gloves and m ittens__________________
Trunks and suitcases........................ ............ ........
Food group:
Cereal preparations.____ ___________________
Condensed and evaporated milk___ __________
Feeds, prepared___ _________ _______________
Paper and printing group:
Paper bags.___ _________ __________________
Envelopes_____ ___________________________
Paper goods, not elsewhere classified__________
Bookbinding._______ ______ ________________
Lithographing. . : ______ ______________ _____‘
Chemical, petroleum, and coal products group:
Ammunition_________________________ _____
Compressed and liquefied gases.________
Perfumes and cosmetics_____________________
Coke-oven products________________________
Paving materials________________
Roofing materials_______________ __________
Miscellaneous group:
Chemical fire extinguishers__ _________ ______
Buttons_____________________________ _____
Instruments, professional, scientific, and com­
mercial__________________________
Optical goods___ . . . . _____________________
Photographic apparatus__________ __.
Pianos, organs, and parts___________ ________
Toys, games, and playground equipment....... .

Nov.
1941

Oct.
1941

Sept.
1941

Nov.
1941

Oct.
1941

144.0
0)
209.3
138.2
152.7
144.4

148.3
0)
207.9
140.3
159.6
147.2

148.0
(>)
203.2
140.6
158.0
140.4

197.3
(>)
294.7
174.3
194.2
180.0

219.0
(>)
293.8
173.1
204.4
190.7

281.8
172.0
194.4
186.6

251.1
207.1
105.9
136.9
118.8

246.9
203.3
121.4
136.8
116.3

241.0
197.7
127.6
134.7
126.5

339.1
319.7
116.0
215.2
140.6

330.7
312.8
141.5
220.3
140.7

323.2
301.8
147.4
212.7
142.4

169.2

169.4

166.9

210.5

216.6

205.4

145.7
148.8

149.5
156.5

149.3
155.1

181.5
181.0

189.1
194.4

189.8
186.3

105. 0
120.0
110.8

105.3
123.1
107.8
127.9
128.8

104.8
124.7
112.3
125.3
130.7

118.8
158.5
138.9
163.9
138.3

120.1

160.9
141.4
170.9
161.7

117.1
158.2
137.9
162.0
165.4

193.5
142.0
118.9
123.1
146.2
140.7

193.7
144.2
121.0

126.3
136.7
140.8

190.8
145.9
123.2
128.3
146.9
140.3

248.3
189.9
148.9
155.3
177.8
165.7

257.8
195.2
161.8
165.7
167.9
166.3

247.5
195.7
160.8
171.6
169.5
167.4

114.3
142.9
106.0
132.9
126.6
106.2

117.7
142.4
112.4
142.2
128.9
108.6

115.7
138.6
114.9
145.8
116.5
108.8

127.0
195.3
144.6
158.9
176.2
138.9

137.3
193.6
158.0
176.6
174.5
144.5

136.5
186.3
172.2
178.9
155.8
137.7

102.1

104.9
154.1
180.5

106.7
148.4
171.4

177.5
214.0

121.2

125.8
195.8
204.1

128.4
191.3
187.3

110.2

116.6
124.4
113.7

118.4
124.4
112.7

129.2
141.8
133.7

128.0
146.3
136.5

139.5
144.2
135.8

129.1
123.0
128.7
108.0

129.3
123.1
128.7
117.0
108.3

131.7
121.7
130.0
116.9
108.7

159.7
137.6
149.2
133.5
116.3

160.7
136.6
152.3
143.2
117.9

161.4
136.9
151.0
148.6
123.3

(■)
140.8
123.6

165.6
141.1
144.9
132.4
162.6

(>)

121.8

162.3
140.5
147.4
139.2
164.9

0)
154.8

120.2

492.6
159.0

471.3
156.9

483.3
151.5

200.3
174.3
126.2
129.5
144.3

287.7
230.0
160.6
163.1
153.9

280.2
215.2
162.3
159.6
157.8

249.5
208.5
159.9
151.4
155.4

125.5
123.7

148.4
191.9
123.5
114.4

111.8

(0

122.6

109.7
129.5

124.3
113.6
129.6

0)
139.0
114.9
124.9
126.6
133.0

323.4

319.4

326.2

121.2
222.3

182.6
124.8
130.4
133.9

140.5

121.0

218.1
177.1
124.9
130.7
139.7

1 Not available.
2 July and August employment indexes have been revised to 117.2 and 113.6.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Pay rolls

(>)

Sept.
1941

196.9

(>)

125.2
146.1
158.0
161.0

Trend of Employment and Unemployment
T able

4 .—

545

Indexes of Employment and P ay Rolls in Selected Manufacturing 1 and
Nonmanufacturing 2 Industries, November 1940 to November 1941
1941

1940
Industry

Av. Nov. Dec. Tan. Feb. J Mar. I Apr. May June July Aug. j Sept Oct. Nov.
E m p lo y m e n t

M a n u fa ctu rin g

All industries-— --------- 107. 5 114.7 116.2 115.5 117.8 119.9 122.6 124.9 127.9 130.6 133.1 135. 2 135.4 134.7
Durable goods 3-------- 104. 3 115.5 117.7 118.3 121.0 123.7 127.7 131. 3 135.1 137.6 138.7 142.1 144.0 144.6
Nondurable goods 4— 110.6 113.8 114.8 112.7 114.7 116.3 117.8 118.8 121.1 123.9 127.7 128.7 127.1 125.3
N o n m anufacturing

Anthracite mining 5-------Bituminous-coal mining A_
Metalliferous mining 6----■Quarrying and nonmetallie mining —_ ---------Crude-petroleum produetio n --------- -------------Telephone and telegraph 7._
Electric light and power 7_..
Street r a i l w a y s and
busses 78___ - - - - - - W holesale trade ......... ..
Retail trade 7----------------Year-round hotels 5__ - - Laundries 5------------------Dyeing and cleaning]6.......

50.7 50.4 50.8 50.3 50.6 50. 2 48.7 48.6 49.2 49.3 50.0 50.0 50.3 50.2

88.0 89.8 90.1 90.2 90.6 91.1 23.5 87.9 88.1 90.3 92.6 94.2 95.3 95.5

09.9 72.5 72.2 72.5 73.4 74.3 77.2 77.1 78.9 79.0 79.9 79.4 79.7 79.3

45.3 47.2 45.4 41.7 42.4 44.2 48.2 51.0 51.9 52.7 53.9 54.2 54.1 52.8
62.9 61.3 60.7 60.3 60.4 60.2 60.1 60.3 61.5 62.1 62.2 61.8 61.6 61.0
77.9 79.2 79.7 80.4 80.9 81.8 83.2 84.6 86.3 88.3 89.6 90.3 90.6 90.0
91.1 91.8 91.3 90.5 90.1 90.3 91.3 92.2 93.5 94.6 95.2 94.9 94.1 93.5
68.5 68.7 68.4
90.4 91.8 92.5
92.3 96.3 108.1
92.0 92.3 92.6
99. 5 99.7 100.3
104.7 106.0 103.3

68.0 68.2 68.3 68.9 69.1
91. 4 91.8 92.4 92.2 93.8
90.7 92.5 97.8 96.1 97.8
93.9 94.2 95.2 96.3 95.0
101.1 102.5 104. 9 108. 3 112.0
101.0 101.4 104.4 117.2 120.6 122.7

68.3
91.2
90.5
92.9
101.4

Pay

69.5 69.7 70.3
94.2 95.8 95.6
96.7 96.9 100.0
94.5 94.5 95.7
115.8 114.6 113.0
121.7 118.9 121.5

70.3 70.4
96.3 96.6

101.0 102.9

96.2 96.3

111.2 109.0
121.2 117.2

rolls

All industries— ....... ........ 105.4 116.4 122.4 120.7 126.8 131.2 134.7 144.1 152.2 152.7 158.1 162.6 166.8 165.2
Durable goods 3. ......... 107.8 125.1 131.7 132.0 139.3 144.6 149.9 163.1 173.9 172.2 177.6 183.3 191.3 190.3
Nondurable goods 4__ 102.7 106. 6 112.1 108.1 112.9 116.3 117.7 122.9 127.9 130. 7 136.3 139.5 139.2 137.2
N o n m a n u fa ctu rin g

Anthracite mining 5_____ 38.5 37.6 42.7 38.5 45.2 42.4 24.3 33.4 51.2 34.8 51.1 49.6 49.2 41.8
Bituminous-coal mining 6 81. 2 84.5 91.4 87.8 90.8 93.8 15. 5 103.4 107. 2 105.4 117.3 115.5 122.6 116.5
Metalliferous mining 6___ 66.7 69.8 72.8 70.4 71.8 72.7 78.9 81.5 85.3 79.3 85.4 85.9 88.3 90.3
Quarrying and nonmetallie mining____________ 40.5 42.3 42.4 36.9 38.2 40.3 47.0 53.2 55.7 55.5 59.3 60.5 61.5 57.5
Crude-petroleum produetio n .......... - ... ---------- 58.2 56.8 55. Í 55. 7 57.2 56.1 57.8 58.6 59.9 61.4 61.5 64.4 64.4 62. 5
Telephone and telegraph 7__ 100.2 103.2 103.5 103.9 104.3 106.4 107.3 110.5 113.0 115.7 116.4 117.3 117.0 116.0
Electric light and power 7__ 104.8 106.9 106.0 105. 1 105.4 106.1 107.6 109.6 111.4 113.5 115.1 115.0 115.7 114.5
Street r a i l w a y s and
busses78- - - - .............. 70.4 70. Í 73.1 70.7 71. C 72.5 72.1 72.7 76.2 75.8 78.6 78.1 78.4 78.6
Wholesale trade_________ 79.0 80.7 83.4 80.5 81.4 82.1 83.4 84.6 88.4 88.0 89.8 90.9 92.0 92.2
Retail trade 7__ - ............ 84.2 87. 1 97. c 83.7 84.6 86.2 91.7 91.5 95.2 94.0 94.0 95.8 97.3 98.1
Year-round hotels A. ___ 82.4 83.6 84. 1 84. 1 86.1 85.7 87. 1 87.9 87.4 87.6 88.2 90.0 91.9 93.8
Laundries 6___ _- -....... - - 87.7 87.2 89.2 89.8 89.7 90.9 95.8 98.7 102.5 106.7 104.7 105.2 103.4 101.9
Dyeing and cleaning 6........ 78.2 77.8 75.8 73.3 74.4 77.2 97.8 96.1 98.4 96.4 92.1 99.5 98.5 92.8
i 3-year average 1923-25=100—adjusted to Preliminary 1939 Census of Manufactures. See tables 9,10,
and 11 of December 1940 “ Employment and Pay Rolls” for comparable figures back to January 1919 for “All
manufacturing” and January 1923 for “Durable goods” and “ Nondurable goods.”
2 12-month average for 1929=100. Comparable indexes for wholesale trade, 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 Monthly Labor Review. For other nonmanufacturing
indexes see notes 5, 6, and 7:
3 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 the pamphlet. See also table 7 of October 1940 pamphlet
for revised figures for anthracite mining, February to September 1940.
» See table 7 of February 1941 pamphlet for revised indexes January 1938 to January 1941.
7 Retail-trade indexes adjusted to 1935 census and public utility indexes to 1937 census. Not comparable
with indexes published in Employment and Pay Rolls pamphlets prior to January 1940 or m Monthly
Labor Review prior to April 1940. Comparable series January 1929 to December 1939 available in mimeo­
graphed form.
.
* Covers street railways and trolley and motorbus operations of subsidiary, affiliated, and successor com­
panies.


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546

Monthly Labor Review—February 1942

U N EM PLO Y M EN T IN D EC EM B ER 1941
PERSONS unemployed in December 1941 numbered 3,800,000, or
7.0 percent of the civilian labor force, according to the WPA monthly
unemployment survey. This compares with 7,100,000, or 13.3 per­
cent of the labor force in December 1940.
T able

1

—Estimated Civilian Labor Force, Employment, and Unemployment, by Months,
A pril 1940—December 1941
Estimated number (mil­
lions of persons)

Estimated number (mil­
lions of persons)

Month and year

Month and year
Labor
Em ­ Unem­
force ployed ployed i

Labor
Em­ Unem­
force ployed ployed)

lQJfO

April. _ ____
. _
M ay_________________
Juno. _ _____ _
July_________________
August_____ ___ ____
September____________
October___ _____ ____
November- ___ - _
December- . . . _ _. . _

1941

53.9
54. 7
56.3
57.0
56.7
55.2
54.8
53.9
53. 2

45.1
46.3
47.7
47.7
47.8
48.1
47.4
46.3
46.1

8.8

8.4

8.6

9.3
8.9
7.1
7.4
7.6
7.1

J anuary
February________
March.
April
Mav
June
July___________
August..
_ .September_________
October--. .
November.
December_____ ______

52 8
52.7
52.4

6. S

408
50. 4
50. 5
49.8
49. 6
49.4
49.5

59
56
5. 3
4.5
3.9
3.9
3.8

.53 3

54 0
55 7
56.0
55.8
54.3
53. 5
53.3
53.3

~r
7. 2

45.5
45. 6

1 Includes persons on public emergency work projects.

The proportion of the unemployedfin the younger age group
declined materially during 1941. Persons under 25 years of age
accounted for 28.9 percent of the unemployed in December 1941,
as compared with 34.4 percent in December of the preceding
year. The proportion of the unemployed 54 years of age and over
increased from 15.2 to 19.2 percent.


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547

Trend of Employment and Unemployment
T able

2.— Estimated Civilian Labor Force, Employment, and Unemployment, by Age
Groups, October—December 1940 and October—December 1941 1
Increase
or de­
crease,
Decem­
ber 1940
Decem­ Novem­ October Decem­ Novem­ October to De­
ber
ber
ber
ber
cember
1941
1940

1941

Age and labor market status

N u m b e r u n e m p lo y ed (m illio n s)

11 age groups:

Labor force_______ ___________
Employed____________ ______
U nem ployed----- --------------- . -

ge 14-24 years:
Labor force___________________
Employed____________________
Unemployed____ —
______
ge 25-54 years:
I ,abor force_____ ____ ___ ...
Employed____
.. -, _____ Unemployed---------- ---------- —
ge 55 years and over:
Labor force___ . . - ----------------Employed___________ ____
Unemployed- ----------------- ----

53.3
49.5
3.8

53.3
49.4
3.9

11.2
10.1
1.1

11.3
10.1
1.2

33.8
31.8

33.7
31.7

53.5
49.6
3.9

53.2
46.1
7.1

53.9
46.3
7.6

54.8
47.4
7.4

+ 0.1
+3.4
-3 .3

11.5

12.2

1.3

11.5
9.1
2.4

12.0

10.2

2.6

9.7
2.5

—.3
+ 1.0
-1 .3

33.5
29.9
3.6

33.8
30.0
3.8

34.4
30.7
3.7

+. 3
+1.9
- 1.6

8.2

8.1

8.2

“K 1

2.0

2.0

33.5
31. 6
1.9

8.3
7.6
.7

8.3
7.6
.7

8.5
7.8
.7

7.1
1.1

9.4

6.9
1. 2

7.0
1.2

+ .5
—.4

U n e m p lo y m e n t ra te 2 (p ercen t)

11 age groups_____ - _ - - ---------

14-24 y e a rs ------- --------------- ------25-54 years___ ______
55 years and over___ -------------

7.0
9.7
5.8
8.7

7.2

7.2

10.6
6.1

11.0

7.8

5.8
7.9

13.3
21.4
10.8

13.4

14.9
21.8

11.3
14.4

13.6

20.8
10.8

14.6

- 6 .3
-11.7
-5 .0
- 4 .7

P e r c en ta g e d istr ib u tio n o f u n e m p lo y e d

J 1 age groups_______ - _ -----------14-24 years, _ . ________ _____
25-54 years____ _____________
55 years and over—_
________

100.0

28.9
51.9
19.2

100.0

30.9
52.3
16.8

100.0

32.5
50.2
17.3

100.0

34.4
50.4
15.2

100.0

34.4
50.2
15.4

0

100.0

34.2
49.7
16. 1

—

5. 5

+1.5
+4.0

1All data exclude persons in institutions. Persons on public emergency work projects are included with
the unemployed. Comparable data beginning with April 1940 appeared in M onthly Labor Review for
October 1941 (p. 897) and for November 1941 (p. 1347).
2 Unemployed as a percent of labor force in each age group.

438471— 42-

-18


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Recent Publications o f Labor Interest

FEBRUARY 1942
Cooperative Movement
Co-ops and the consumer crisis. By Dexter Masters.
York, December 1941, pp. 682-686; illus.)
A discussion of the following questions: As prices go
can the cooperative movement seize its opportunity to
nomically? And can it compete with big business in a
production?

(In Survey Graphic. New
up and quality goes down,
distribute goods more eco­
period of limited consumer

Cooperative legislation in Canada, 1941. By J. E. O’Meara. (In Economic
Annalist, Department of Agriculture of Canada, Ottawa, October 1941,
pp. 68-74.)
Farmer cooperation in northern Alabama: A physical inventory and appraisal of
cooperative endeavor in sixteen counties. By L. C. Salter and E. L. Morgan.
Auburn, Ala., Alabama Polytechnic Institute, Agricultural Experiment
Station, 1941. 52 pp., maps, charts. (Bull. 249.)
Covers 18 active cooperative associations (13 county exchanges doing both mar­
keting and purchasing, 2 strawberry marketing associations, 2 cotton gins, and a
dry-mix fertilizer association).
Farmer cooperation in Southwest Virginia. By E. L. Morgan and T. N. Gearreald.
Blacksburg, Va., Virginia Polytechnic Institute, Agricultural Experiment
Station, 1941. 46 pp., maps, charts. (Bull. 331.)
An analysis of 26 cooperative associations (6 purchasing associations, 13 live­
stock shipping associations, 3 wool pools, 1 strawberry marketing association,
1 association of breeders of purebred sheep and 1 of breeders of purebred bulls,
and 1 association renting farm equipment), giving data on amount of business,
working capital, income and expense, etc. Contains a short history of cooperation
in the district, also conclusions and recommendations based upon the study.
Yearbook of agricultural cooperation, 1941. Edited by Horace Plunkett Founda­
tion. London, P. S. King & Son, Ltd., 1941. 296 pp.
The British Empire and several other countries are represented.
The church and credit unions. By Benson Y. Landis. (In Information Service,
Federal Council of the Churches of Christ in America, New York, Decem­
ber 13, 1941, pp. 1-8.)
Gives a brief account of the 378 credit unions organized among members of local
churches in the United States, an outline of the historical development of such
organizations, and data on specific credit unions.
Self-help cooperatives in Utah, 1935-41. . Washington, U. S. Bureau of Labor
Statistics, 1941. 6 pp. (Serial No. R. 1376, reprint from August 1941
Monthly Labor Review.)

Cost and Standards of Living
Wages and cost of living in two World Wars. By Witt Bowden. Washington, U. S.
Bureau of Labor Statistics, 1941. 24 pp., charts. (Serial No. R. 1394,
reprint from November 1941 Monthly Labor Review.)
E d i t o k ’s n o t e .— The Bureau of Labor Statistics does not distribute the publications to which reference
is made in this list, except those issued by the Bureau itself. For all others, please write to the respective
publishing agencies mentioned.

548


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Recent Publications of Labor Interest

549

Cost of living of low-wage groups— women workers. (In Southern California
Business Review, University of Southern California, Bureau of Business
Research, Los Angeles, October 1941, pp. 1-8.)
Results of a survey of cost of living of approximately 4,000 working women in
the lower wage brackets in California.
Adequate maintenance and protection of health for women workers in New York
State, September 1940. New York, State Department of Labor, Division of
Women in Industry and Minimum Wage, 1941. 29 pp., charts; mimeo­
graphed.
.
The minimum annual cost of “adequate maintenance and protection of health
of working women in New York State in September 1940 was $1,057.94 for the
woman living as a member of a family, and $1,170.20 for the woman living alone.
No allowance for income tax is included. These cost figures are based on a
budget which is priced annually for use in minimum-wage determinations. The
total cost of the budget varied slightly according to size of community, being
$47 less in towns with 5,000 to 10,000 population than in the State as a whole,
for the woman living at home, and $40 less for the woman living alone.
Cost of living of representative working class families. Liverpool, University of
Liverpool, Social Science Department, 1941. 27 pp.
Gives budgets of working-class families in Great Britain, and estimates of in­
creases, October 1940 over certain earlier periods, in prices thereof.
Living and office-operating costs in the Bahama Islands. Washington, U. S.
Bureau off Foreign and Domestic Commerce, December 1941. 3 pp. (Inter­
national reference service No. 66.)
Living and office-operating costs in Bermuda. Washington, U. S. Bureau of
Foreign and Domestic Commerce, December 1941. 3 pp. (International
reference service No. 65.)
Indexes of rents paid by wage earners and lower-salaried workers in 34 large cities,
1914 to 1941. Washington, U. S. Bureau of Labor Statistics, 1942. 10 pp.;
mimeographed.
Precio medio de la habitación ofrecida en la ciudad de Buenos Aires, 1939-1940.
Córdoba, Argentina, Universidad Nacional de Córdoba, Instituto de Esta­
dística, 1941. 16 pp., charts.
Statistics of average rents in Buenos Aires, by month, 1938 to 1940, and by
year, 1912 to 1940.

Economic and Social Problems
The development of American industries: Their economic significance. By John
George Glover and William Bouck Cornell. New York, Prentice-Hall, Inc.,
1941. xxviii, 1005 pp., maps, charts, illus. Rev. ed.
Revision of a book first published in 1932. The various industries are described
by specialists. There is an introductory chapter by the president of the American
Federation of Labor, on “Labor’s contribution to American industries.”
Free speech in the United States. By Zechariah Chafee, Jr. Cambridge, H aivaid
University Press, 1941. xiv, 634 pp.
,,
Designed to take the place of the author’s volume on “freedom of Speech,
published in 1920. The first six chapters contain essentially the same materials
as the earlier volume. The period since 1920 is covered by discussions of the
more important laws and judicial proceedings affecting freedom of speech.
Appendixes give summary information regarding the present status of Federal
and State legislation. The bearing of freedom of speech on labor organizations
and their activities is considered in various sections.
Economic Shanghai: Hostage to politics, 1937-1941. By Robert W. Barnett.
New York, Institute of Pacific Relations, International Secretariat, 1941.
207 pp., plans, illus.
.
• .
The book has a section on labor in Shanghai discussing working and living con­
ditions, cost of living, unemployment, overcrowding by refugees, and labor
organization and strikes, during the years 1937 to 1940.


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550

Monthly Labor Revieiv—February 1942

Nation and fam ily: The Swedish experiment in democratic fam ily and population
policy. By Alva Myrdal. New York, Harper & Bros., 1941. 441 pp.,
bibliography, charts.
In the judgment of the author, the problem centering around the family and
the quantity and quality of the population will gradually take a dominant place
among reconstruction problems.

Handicapped Workers
Employment of handicapped persons. By John B. Knox. (In Management
Record, National Industrial Conference Board, Inc., New York, December
1941, pp. 151-154.)

Data on practices of 68 companies in respect to employment of illiterates, ex­
convicts, and physically handicapped persons, based on a survey by Alabama
College (Montevallo, Ala.). Where careful selection procedures were used, the
experience of companies which had employed handicapped persons seemed to
have been uniformly good, but the writer states that social philosophies “may be
more important than experience in determining policies” regarding their em­
ployment. However, he concludes that a sufficiently large number of corporations
employ handicapped persons to “indicate that it is practical.”
Handicapped workers under the wage and hour law. Washington, U. S. Depart­
ment of Labor, Wage and Hour Division, 1941. 3 pp.
Reeducación profesional en Chile. By Francisco Perez. (In Trabajo y Previsión
Social, Departamento del Trabajo y Previsión Social, México, D. F.. September
^ 1941, pp. 9 3 -9 7 .)

Summarizes Chilean legislative provisions under which vocational reeducation
of injured workers is provided, gives a detailed account of an institution estab­
lished by the President of the Republic for providing this vocational rehabilita­
tion, and enumerates kinds of benefits provided for those being rehabilitated.
Back to workf The case of the partially disabled worker. By Hermann Levy.
London, Fabian Society, 1941. 24 pp. (Research series, No. 56.)
The need for rehabilitation and other services in Great Britain for partially
disabled workers is the subject of this pamphlet.

Industrial Accidents and Workmen's Compensation
Compensated accidents [in New York State, 1940]. (In Industrial Bulletin, New
York State Department of Labor, Albany, October 1941, pp. 305-307.)
Handling of objects and tools caused the largest number of compensable
accidents in New York State in 1940— 29,921 of the total of 79,280—but were less
severe than accidents due to falls, which caused nearly twice as many deaths
and much greater time loss in connection with nonfatal injuries. The compensa­
tion cost for accidents from handling of objects and tools averaged $219, less than
half the average of $454 per case for the 17,973 falls.
A statistical study of all accident and occupational disease claims filed with Industrial
Commission of Ohio during calendar year 1940 with summary of years 19811940 inclusive. Columbus, Industrial Commission, 1941. 27 pp.
Summary and analysis of accidents on steam railways in the United States subject
to Interstate Commerce Act, calendar year 1940. Washington, U. S. Interstate
Commerce Commission, Bureau of Statistics, 1941. 124 pp., charts.
(Accident bull. No. 109.)
Some essential safety factors in tunneling. By D. Harrington and S. H. Ash.
Washington, U. S. Bureau of Mines, 1941. 61 pp., diagram, illus. (Bull.
439.)

Industrial Hygiene and Occupational Diseases
Industrial hygiene and occupational diseases. New York, New York University,
Center for Safety Education, 1941. Various paging, bibliography; mimeo­
graphed.
Course outline and digest of lectures conducted by the Center for Safety Educa­
tion of New York University in cooperation with the National Conservation
Bureau, New York City.

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Recent Publications of Labor Interest

551

Occupational diseases— diagnosis, medicolegal aspects, and treatment. By Ruther­
ford T. Johnstone, M. D. Philadelphia, W. B. Saunders Co., 1941. 558 pp.,
illus.
Symposium on anthrax. Harrisburg, Pa., Department of Health, Bureau of
Industrial Hygiene, 1941. 45 pp.
.
The papers deal with an epidemiological study of anthrax m Philadelphia, a
20-year survey of anthrax in the United States, the treatment of anthrax,
anthrax in the fur-felt hat industry, and the enforcement problem of the State
Bureau of Inspection.
Occupational and related dermatoses■
— abstracts from the literature for the years 1935
to 1939, inclusive. By Louis Schwartz and Leon H. Warren. Washington
U. S. Public Health Service, 1941. 160 pp. (Public health bull. No. 266.)
Mercury poisoning as a mining hazard. By Sara J. Davenport and D. Harrington.
Washington, U. S. Bureau of Mines, 1941. 27 pp., bibliography; mimeo­
graphed. (Information circular 7180.)
The bulletin gives the mode of entrance of mercury into the body, symptoms,
pathologic effects, toxicity of mercury, and treatment and prevention of poisoning.
The compensation of occupational diseases. By L. Teleky. (In Journal of in ­
dustrial Hygiene and Toxicology, Baltimore, Md., October 1941, pp. 353373 )
Reviews the progress in enacting compensation laws for occupational diseases
in the different States and discusses the definitions of occupational diseases and
of disability, type and scope of the laws, and the particular problems presented by
skin diseases and by silicosis, asbestosis, and pneumoconiosis. A tabular state­
ment shows the coverage for poisoning or injury by different substances or processes
in England and Germany, and in 13 States of the United States and Puerto Rico.

Industrial Relations
Ideologies and American labor. By Paul K. Crosser. New York, Oxford Lniversity Press, 1941. xvi, 221 pp.
Historical study of the philosophical and economic bases of American tradeunionism and labor problems.
We work for the future: American Federation of Labor and national defense. By
William Green. Washington, American Federation of Labor, 1941. 72 pp.
Strikes in defense industries, jurisdictional disputes, protection of workers,
welfare, defense migration, and woman defense workers, are among the matters
discussed.
Federal intervention in labor disputes and collective bargaining the Hutcheson case.
By Ludwig Teller. (In Michigan Law Review, Ann Arbor, November
1941, pp. 24-48.)
,
. .
Analysis of implications of the recent United States Supreme Court decision
which deals with the legality of labor activities and objectives in relation to the
Sherman, Clayton, and Norris-La Guardia Acts.
Memorandum on strikes in the defense period. Washington, U. S. Bureau of Labor
Statistics, 1941. 13 pp.; mimeographed.
Industrial history in wartime. By Wal Hannington. London, Lawrence &
Wishart, Ltd., 1941. 119 pp. (Marxist textbook series, No. 5.) _
Includes a record of the shop stewards’ movement in Great Britain and traces
developments since the early period of capitalism.

Industry Reports
Labor standards and competitive market conditions in canned goods industry. Wash­
ington, U. S. Women’s Bureau, 1941. 34 pp. (Bull. No. 187.)
Four canned vegetables—spinach, pimientos, tomatoes, and green and wax
beans—were covered by this survey, which was undertaken to obtain answers
to the following questions: (1) To what extent are products sold outside the_otate
in which canned? (2) To what extent do these canned vegetables compete m the
major wholesale markets? (3) Under what price disadvantages are competing
products marketed from places with different wage levels? and (4) Is there evi­
dence that the expansion of the canning industry in low-wage regions leads to its
curtailment where wages are high?

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552

Monthly Labor Review—February 1942

M ultiple-shift mechanical mining in some bituminous-coal mines (progress report 3)
By Albert L. Toenges and Earl R. Maize. Washington, U. S. Bureau of
Mines, 1941. 43 pp.; mimeographed. (Information circular No 7178)
Describes mechanized methods in individual mines.
The iron and steel industry in South Africa. By C. S. Richards. Johannesburg,
Witwatersrand University Press, 1940. Various paging, charts, illus.
A detailed study made with special reference to one large company, in relation
tolth e Transvaal gold-mining industry. The survey covers the period ending
December 1939.
Filipino plantation workers in Hawaii. By Edna Clark Wentworth. New York
Institute of Pacific Relations, American Council, 1941. 245 no. charts illus
(Studies of the Pacific, No. 7.)
Deals with incomes, expenditures, and living standards of Filipino families on a
Hawaiian sugar plantation.

Labor and Social Legislation
Cases and materials on labor law. Compiled by Charles 0 . Gregory Chicago
University of Chicago Bookstore, 1941. 721 pp.
Handbook of Federal labor legislation: Part I I , Tabor laws of general application
Washington, U. S. Department of Labor, Division of Labor Standards 1941
150 pp., loose-leaf. (Bull. No. 39, Part II.)
The first pai t of this bulletin deals with legislation pertaining to labor standards
on Government contract work and work financed by the United States. Both
parts are m loose-leaf form in order that insertions may be made to keep the hand­
book up to date.
Reports of committees and resolutions adopted by eighth national conference on labor
legislation, f Washington], November 12 - 1 4 , 1941. Washington, U S Depart­
ment of Labor, Division of Labor^Standards, 1941. 23 pp. (Bull. Ño. 52-A.)
“What the courts have said” in interpreting the National Labor Relations Act. By
Herbert O. Eby. Washington, Washington Legal Publications, 1941 147
pp.; mimeographed.
Prepared as a ready-reference guide to decisions of the courts in the leading
cases that have arisen under the National Labor Relations Act since April 1937
when the U. S. Supreme Court declared it constitutional. The cases have been
classified into 14 chapters, each dealing with a major issue. Each chapter is pref­
aced by background material and the pertinent sections of the act.
Viajantes y corredores de comercio-régimen legal de la ley 12651, exposición y
comentario. By Miguel Scolni. Buenos Aires, Ediciones Anaconda 1940
212 pp.

’

Treatise on the application of the Argentine law of October 10, 1940 protecting
commercial travelers and regulating their activities, including discussion of cover­
age, remuneration, and limitation of responsibility of commercial travelers, and
the provisions of other social legislation covering this occupation in the matter of
paid vacations, dismissal, etc. The text of the law of October 10, 1940 is given
in an appendix.
’

Labor Organizations and Their Activities
Proceedings of Bureau of Labor Statistics’ second annual conference with research
directors of national and international unions, Washington, D. C, June 19-20
1941. Washington, U. S. Bureau of Labor Statistics, 1941. 68 pp • mimeo­
graphed.
Organización sindical, asociaciones obreras y patronales [Argentina] Buenos
Aires, Ministerio del Interior, Departamento Nacional del Trabajo, 1941.
52 pp., processed. (Series B, Statistics and censuses, No. 9.)
Results of the second national census of associations of workers and employers
in Argentina, showing their status on June 30, 1941, locations, fields of activity
affiliation to larger bodies, and membership. The text of the legislation author­
izing censuses of such associations and governing their formation, and extracts
from constitutions of associations, showing their aims and purposes, are included.


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Recent Publications of Labor Interest

553

Proceedings of second annual convention, Canadian Congress of Labor, Hamilton,
Ontario, September 8-12, 1941. [Ottawa?], Canadian Congress of Labor,
1941. 117 pp.
The place of the Labor Party in British politics. New York, British Library of
Information, 1941. 4 pp.; mimeographed.
.
Reviews the rise of the Labor Party, its past and present activities and
functions.
The legal personality of Philippine labor unions. By Cristeto O. Cimagala. (In
Philippine Law Journal, Manila, October 1941, pp. 138-153.)
A study of the general legal status of labor unions in the Philippine Islands, in
which the personality of the unions is copiously treated, th e author explains
the basic laws regulating labor organizations, and outlines the methods of institut­
ing suits by or against labor unions. He also explains the basis of liability and
powers of unions, especially as between unions and third persons and between
unions and their members.

Migration and Migratory Workers
America’s own refugees: Our 4,000,000 homeless migrants. By Henry H. Collins,
Jr. Princeton, N. J., Princeton University Press, 1941. 323 pp.
Much of the material in this book is based on the reports of the Tolan Com­
mittee of the House of Representatives, which investigated the interstate migra­
tion of destitute citizens, and on other official government sources.
National defense migration. Washington, 1941. 149 pp. (House of Representa­
tives report No. 1553, 77th Cong., 1st sess.)
_
_
Second interim report of Select Committee Investigating National Defense
Migration, House of Representatives, 77th Congress, 1st session, pursuant to a
resolution (H. Res. 113) to inquire further into interstate migration of citizens,
emphasizing present and potential consequences of migration caused by the
national defense program. The report includes the Committee’s recommenda­
tions on utilization of the Nation’s industrial capacity and on labor supply in
the war effort.
Mexicans to Michigan. By Carey McWilliams. (In Common Ground, Common
Council for American Unity, Voi. 2, No. 1, New York, autumn 1941, pp.
5-18; illus.)
.
Describes recruitment in Texas of Mexican families for sugar-beet work in
Michigan, methods of transportation, and living conditions and earnings of these
workers in Michigan.
The adjustment of new settlers in the Yakima Valley, Washington. By Carl F.
Reuss and Lloyd H. Fisher. Pullman, State College of Washington, Agri­
cultural Experiment Station, 1941. 48 pp., charts. (Bull. No. 397.)
The report includes data on hired farm-labor requirements in the Yakima Val­
ley, working population among the new settlers, and adjustment of new settlers
as measured by earnings and employment from June 1938 to May 1939.

Minimum Wage
Analysis of m inim um wage determinations of Secretary of Labor pursuant to Public
Contracts Act of June 80, 1986. Washington, U. S. Department of Labor,
Division of Public Contracts, 1941. 16 pp.; processed.
Determinations covered are those in effect as of November 3, 1941. Terms are
presented in tabular form.
Guaranteed living-wage provisions of State minimum-wage orders for women. By
Louise Stitt. Washington, U. S. Bureau of Labor Statistics, 1941. 6 pp
(Serial No. R. 1364,-reprint from September 1941 Monthly Labor Review.)
(J salàrio minimo na lavoura paulista. By Abelardo de Paula Brasil. (In Legislagao do Trabalho, Sao Paulo, October 1941, pp. 425-440.)
Detailed study of the application of the minimum-wage legislation of Brazil to
agricultural workers in the coffee, sugar-cane, banana, cotton, and other industries
of the State of Sao Paulo, including information on welfare benefits and other
conditions.


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554

Monthly Labor Review—February 1942

Occupations
A guidance bookshelf on occupations.
1941. 26 pp.; processed.
Lists 81 references.

Washington, U. S. Office of Education,

Occupational information and guidance bibliography, 1937-88. Compiled by Pedro
T. Orata. Washington, U. S. Office of Education, 1941. xi, 521 pp. (Voca­
tional division bull. No. 212; Occupational information and guidance series
No. 5.)
The right job for you and how to get it. By Esther Eberstadt Brooke. New York,
Noble and Noble, Publishers, Inc., 1941. 304 pp.
Emphasizes the advantages of being one’s self and the importance of using
common sense in selecting the right job.
A job in banking. By Joseph J. Schroeder. Chicago, Science Research Asso­
ciates, 1941. 49 pp., illus. (American job series, Occupational monograph
No. 25.)
This survey of the banking field includes information on kinds of jobs, working
conditions, requisite preparation for employment, trends, and prospects.
Careers in the mineral industries: A vocational booklet for use in secondary schools.
By Thomas T. Read. New York, American Institute of Mining and Metal­
lurgical Engineers, 1941. 31 pp., bibliography. Second revised edition.
The public health nurse in action. By Marguerite Wales. New York, Macmillan
Co., 1941. xix, 437 pp.
Intended primarily for undergraduate nursing students who are preparing to
specialize in public health work and for nurses who are doing graduate work in
that field. In each chapter one phase of public health work is discussed followed
by a group of informal case histories illustrating general principles, and a brief
bibliography.

Pensions
Financing State and city pensions: Receipts, payments, and assets of pension funds
of States and of cities over 100,000 population, 1938. Washington, U. S
Bureau of the Census, 1941. 82 pp., charts; processed. (State and locai
government special study No. 15.)
A cross-sectional examination of the public-employee pension systems of the
different States, and of the 94 cities having a population of 100,000 and over,
for the year 1938. It deals with the basis for financing pensions, receipts, dis­
bursements, assets, and State-local relations involving State pension administra­
tion on behalf of local governments and their employees.
Twentieth annual report of Board of Actuaries of U. S. Civil Service Retirement and
Disability fund, for fiscal year ended June 30, 19jO. Washington, 1941. 23
pp. (House of Representatives doc. No. 281, 77th Cong., 1st sess.)
The report gives a description of the main benefit and contribution provisions
of the Civil Service Retirement Act, a statement of the membership of the retire­
ment fund as of June 30, 1940, and an estimate of the appropriations which should
be made by the Government to support the plan.
Data on operations of the Federal employees’ retirement system during the
fiscal year 1939-40 were published in the October 1941 Monthly Labor Review
(p. 909).
Report of Departmental [Home Department, Great Britain] Committee on Police
Widows’ Pensions. London, 1941. 52 pp. (Cmd. 6312.)

Personnel Management
Management and morale. By F. J. Roethlisberger. Cambridge, Mass., Harvard
University Press, 1941. xxii, 194 pp.
A discussion of the factors involved in human relationships within business
and industrial organizations.


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Recent Publications of Labor Interest

555

Personnel policies and practices survey. By P. M. Jones. (In Personnel Journal,
New York, October 1941, pp. 122-128.)
_
. . . ...
Summary data from a survey by Mississippi State College of personnel activities
in Mississippi industries. The report covers 69 firms, with 21,747 employees, and
gives information on number having personnel directors, employment methods
followed, wage-payment plans and wage determinants, education and housing
of workers, labor turn-over, and employment stabilization.
Effective foremanship. Edited by Harold B. Maynard. New York, McGrawHill Book Co., 1941. 263 pp.
,
,
The volume contains articles by 15 contributors on various phases
industrial management which it is considered are essential for the modern foreman
to understand.

Production
Finished commodities since 1879: Output and its composition. By William H.
Shaw. New York, National Bureau of Economic Research, 1941. 49 pp.,
charts. (Occasional paper 3.)
,
,
r j?
Preliminary report of an extensive study by the National Bureau of Economic
Research. It is estimated that the total output of finished commodities increased
from 1879 to 1939 at an annual rate of 3.2 percent. Population, m contrast,
increased at an average annual rate of only 1.3 percent. Tim study includes
analyses of shifts in the proportions of types of goods, notably of perishable and
durable goods, and discusses short-term fluctuations as well as long-term changes.
The relation between factory employment and output since 1899 By Solomon
Fabricant. New York, National Bureau of Economic Research, 1941.
39 pp., charts. (Occasional paper 4.)
.
,
An advance summary of data on manufacturing to appear m an extensive
study of productivity by the staff of the National Bureau of Economic Research
It is estimated that, in terms of number of workers per unit produced, employment
in 1940 was only 44 percent of employment in 1899, and that in terms of man­
hours per unit of output employment in 1940 was less than a third of employment
in 1899. The study emphasizes the significance of this change in making possible
an advance in the quantity of goods and services available.
Curtailment of automobile production in World War I. By Irving Bernstein.
Washington, U. S. Bureau of Labor Statistics, 1941. 21 pp.; mimeographed.
Food production in Western Europe: A n economic survey of agriculture in six
countries. By P. Lamartine Yates. London, New ^ ork, etc., Longmans,
Green and Co., 1940. 572 pp., maps, diagrams, illus.
A comprehensive account of food production in six countries— Denmark, the
Netherlands, Belgium, France, Switzerland, and Germany—prior to the outbreak
of the present war. The farming systems in the different countries are described
and such problems as land tenure and indebtedness, cooperation, marketing,
mechanization, and the rural exodus are discussed, th e different forms of
State assistance developed during the last 10 years are analyzed, and a policy is
presented for the reorganization of agriculture more effectively to serve the public
interest.

Social Security
From relief to social security: The development of the new public welfare services
and their administration. By Grace Abbott. Chicago, University of C l ag
Collection of papers and addresses by the late Grace Abbott, covering, with one
earlier exception, the period from 1929 to 1939, and dealing with public welfare m
relation to relief and social security.
South America builds social security. By Oswald Stein. (In Social Security,
New York, November 1941, pp. 3-4.)
Reviews social-security developments in South America as a whole; and sum­
marizes briefly the principal provisions of certain social-security legislation now m
force in Argentina, Bolivia, Brazil, Chile, Ecuador, Peru, Uruguay, and Venezuela.


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556

M o n th ly L a b o r R e view — F e b ru a ry 1 9 4 2

Estudio sobre la Caja de Seguro Obligatorio en Chile. By José María García
(In Boletín del Departamento Nacional del Trabajo, Bogotá, Colombia'
Apnl-December 1940, pp. 299-336.)
’
’
A historical and statistical account of social insurance in Chile is followed by a
detailed study of the Chilean Compulsory Insurance Fund, treating, among other
topics the organization and administration of the fund, classes of insured persons
child wehar^bmie^ts^1011 ° f ^ insurance to rural workers, and maternity and
La reforma de la ley 4054 del seguro obligatorio de enfermedad, invalidez, vejez y
muerte by Julio Bustos A.; Informe actuarial sobre el -proyecto de reformas a las
leyes Nos 4054 y 4055, by Rolando González B. (In Previsión Social Minis­
terio de Salubridad, Prevision y Asistencia Social, Departamento de Previsión
Social, Santiago de Chile, May-June 1941, pp. 375-401, 402-436 )
n¡l z ñr^ artlcle l s a car?ful study, by the chief of the Chilean Social Welfare
Bureau, of a pioposal for the reform of the Chilean law on compulsory insurance
covering sickness, invalidity, old age, and survivors’ benefits, on the basis of
experience since enactment of the law in 1935. The second article is an actuarial
study of proposed reforms, by an actuary of the Social Insurance Bureau.
Report on enforcement of Old Age Pensions Act, of Blind Persons A id Act, and of
Needy Mothers Assistance Act [Quebec]. Quebec, Department of Labor
1 9 4 1 . 47 pp., charts.
’
„ £ ontain® statistics of old-age and blind persons’ pensions, and assistance to
needy mothers, in the Province of Quebec for the period 1936 to 1940.

ft ages and Hours of Labor
Present price and wage trends in the United States. By Isador Lubin, Commis­
sioner of Labor Statistics. (In Labor Information Bulletin, U. S. Bureau of
Labor Statistics, Washington, December 1941, pp. 1-4, charts; also reprinted.)
Report on salary and wage trends in various cities. By Norman N Gill Mil­
waukee, M is., Municipal Reference Library, 1941. 17 pp. • mimeoeraohed
Results of an inquiry into action taken in 1941 and to be taken ’in 1942 in re°-ard
to changes m salaries and wages of city employees, with particular reference
to increases based on the rising cost of living.
Wages and cost of living in two World Wars. By Witt Bowden. Washington
H[0f- Bur.eau, of Labor Statistics, 1941. 24 pp., charts. (Serial No R
1394, reprint from November 1941 Monthly Labor Review.)
Uni w
Πito i n
W w in of
tT $Labor
ll adekStatistics,
June 1941.
1941 ■ 30fiypp.,
Kermit
Washington,
U. TS. «Bureau
chartsB - Mohn.
(Serial
No: R. 1409, reprint from December 1941 Monthly Labor Review.)' 1
Earnings and hours in rice mills, 1941. By Bernard L. Smith. Washington
U. S. Bureau of Labor Statistics, 1941. 14 pp
(Serial No R 1 4 9 3 rpmini
from November 1941 Monthly Labor-Review )
’ P

Wartime Conditions and Policies
American commodity markets after 2 years of war. By Saul Nelson. Washington
[ oqo- Bui eau, of Labor Statistics, 1941. 32 pp., charts. (Serial No r ’
1393, reprint from November 1941 Monthly Labor Review.)
d f VoUcies and procedures, 1917-18. By Stella Stewart.
Washington, U. S. Bureau of Lábor Statistics, 1941. 54 pp.; mimeographed.
Economic consequences of the second World War. By Lewis L. Lorwin. New York
Random House, 1941. xvii, 510 pp.
»
a+uh°AT co.ntfasts the Nâzi and the democratic systems of society. He
outlines the Nazi plans for the future of the world, contrasts the world’s future
under a democratic victory, and discusses the steps that he deems immediately
possible and desirable for planning post-war readjustment on a democratic basis.


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Recent Publications of Labor Interest

557

Utilization of plant facilities under national defense program. By Morris Levine.
Washington, U. S. Bureau of Labor Statistics, 1941. 8 pp. (Serial No. R.
1396, reprint from November 1941 Monthly Labor Review.)
Canadian war economics. Edited by J. F. Parkinson, loronto, Lniversity oi
Toronto Press, 1941. 191 pp.
Collection of studies based on material originally presented in a series of
lectures on “the Canadian economy and the war,” given in the first 3 months
of 1941 at the University of Toronto. Later data have been added by the
contributors, who include Government officials, economists, the editor of the
Monthly Review of the Bank of Nova Scotia, and the president of the Trades
and Labor Congress of Canada.
The Cambridge evacuation survey: A wartime study in social welfare and education.
Edited by Susan Isaacs and others. London, Methuen & Co., Ltd., 1941.
235 pp., bibliography.
. .
, .,
The attitudes of the families receiving evacuated children, of the evacuees
themselves, and of the teachers were studied.
The women of England. By Margaret Biddle. Boston, Houghton Mifflin Co.,
1941. 99 pp., illus.
.
Describes each of the organized British women’s war services and the stamina
of individual women in facing their everyday problems.

White-Collar Workers
The white-collar worker—industry's forgotten men and women. (In Modern
Industry, New York, November 15, 1941, pp. 25-28; illus.) .
The article compares the working conditions and economic position of whitecollar workers and production workers, and shows that frequently the latter are
better off from the standpoint of both earnings and working conditions.
Emergency salary administration. New York, American Management Associa­
tion, 1941. ‘ 32 pp. (Office management series No. 95.)
Three papers dealing, respectively, with problems encountered in a survey of
office salaries, alining salaries with the wage-and-hour law, and salary adjust­
ments during the emergency.
Salary evaluation. By Asa S. Knowles and Ihomas McAuley. (In Personnel,
New York, November 1941, pp. 134-164; also reprinted by Bureau of
Business Research, Northeastern University, Boston, Mass.)
_
A system for appraising salaried jobs is outlined, based on information obtained
from 45 firms which have definite plans of salary evaluation in operation.
Statistics of State school systems, 1939-40 (preliminary report). By David T.
Blose. Washington, U. S. Office of Education, [1941]. 12 pp.; processed.
If” (Circular No. 205.)
.
,.
. , „
,
Includes statistics of average annual salaries of instructional staff members
in 1929-30, 1937-38, and 1939-40.

General Reports
Annual report on working of [Indian] Factories Act (X X V of 1934) in Burma for
year 1940. Rangoon, Chief Inspector of Factories, 1941. 30 pp.
The report contains statistics of number of factories, number of workers, and
industrial accidents for the year 1940.
[Annual report, for year 1940, on operation of I actory and II orkshop Acts, Ireland,
1901-1920.] Dublin, Department of Industry and Commerce, 1941. 13 pp.
Covers factory inspection, accidents, and related information.
Annual report of Labor Depart?nent, Malaya, for year 1940. By C. Wilson. Kuala
Lumpur, Federated Malay States, 1941. 9 pp.
Labor conditions, industrial disputes, and wages, are among the subjects
reported on.


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558

Monthly Labor Review—February 1942

La -protección del trabajo asalariado de los indígenas [México], By Javier Uranga H.
(In Trabajo y Previsión Social, Departamento del Trabajo y Previsión
Social, México, D. F., September 1941, pp. 53-63.)
Deals with wages, cost of living, labor agreements, and exploitation of the
native workers in Mexico, with proposed minimum standards for working con­
ditions of native workers.
Geografía medico-sanitaria del Estado Cojedes [Venezuela] con especial referenda al
paludismo. By Ricardo Archila and Miguel Nieto. (In Revista de Sanidad
y Asistencia Social, Ministerio de Sanidad y Asistencia Social, Caracas,
^ October 1941, pp. 587-785, charts.)
Statistics and other information on wages, housing, nutrition, food prices, and
cost of living in the Venezuelan State of Cojedes.


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U s. GOVERNMENT PRINTING OFFICE: <»42